Minnesota Legislature
HF 5247
1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/24/2024 02:14pm
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 04/02/2024 | |
| 1st Engrossment | Posted on 04/24/2024 |
Current Version - 1st Engrossment
2.19 2.20
2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36
2.37
3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 4.1 4.2
4.3 4.4
4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8
5.9 5.10
5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27
5.28 5.29
6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27
6.28 6.29
6.30 6.31 6.32 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10
7.11
7.12 7.13 7.14 7.15
7.16 7.17
7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12
9.13 9.14
9.15 9.16 9.17 9.18 9.19 9.20 9.21
9.22 9.23
9.24 9.25 9.26 9.27 9.28 9.29 9.30 10.1 10.2 10.3 10.4 10.5 10.6 10.7
10.8 10.9
10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25
10.26 10.27
10.28 10.29 10.30 10.31 11.1 11.2
11.3 11.4
11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21
11.22 11.23
11.24 11.25 11.26 11.27 11.28
11.29 11.30
12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24
14.25 14.26
14.27 14.28 14.29 14.30 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31
15.32
16.1 16.2 16.3 16.4 16.5 16.6
16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14
16.15 16.16 16.17 16.18 16.19 16.20
16.21 16.22 16.23 16.24
16.25 16.26 16.27 16.28 16.29 16.30 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12
17.13 17.14
17.15
17.16 17.17
17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29
18.30
19.1 19.2 19.3 19.4 19.5
19.6
19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17
19.18
19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 20.1 20.2 20.3
20.4
20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 20.31 20.32 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 21.33 21.34 21.35 21.36 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27
22.28
22.29 22.30 22.31 22.32 22.33 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 24.33 24.34 24.35 24.36 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 28.34 28.35 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20
29.21
29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 29.33 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23
30.24 30.25
30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 31.1 31.2 31.3
31.4
31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21
31.22 31.23
31.24 31.25 31.26 31.27 31.28 32.1 32.2 32.3
32.4
32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19
32.20
32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 33.32 33.33 33.34 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 34.33 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12
36.13 36.14
36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 36.31 36.32 36.33 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 38.1 38.2
38.3 38.4
38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30
38.31 38.32
39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33
40.1 40.2
40.3 40.4 40.5 40.6 40.7 40.8 40.9
40.10 40.11
40.12 40.13 40.14 40.15
40.16 40.17
40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14
41.15 41.16
41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28
41.29
41.30 41.31 41.32 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23
42.24
42.25 42.26 42.27 42.28 42.29 42.30 42.31 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20
43.21 43.22
43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31
43.32
44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31
44.32
45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9
45.10
45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22
45.23
45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9
46.10
46.11 46.12 46.13 46.14 46.15 46.16 46.17
46.18
46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 47.1 47.2
47.3
47.4 47.5 47.6 47.7 47.8 47.9
47.10
47.11 47.12
47.13 47.14
47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10
48.11
48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24
48.25 48.26
48.27 48.28 48.29 48.30 48.31 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8
49.9 49.10
49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22
49.23 49.24
49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 49.33 50.1 50.2
50.3
50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22
50.23
50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 50.33 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 51.31 51.32 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16
52.17
52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 52.33 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29
53.30
53.31 53.32 53.33 53.34 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23
54.24
54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32
55.1
55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14
55.15
55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28
55.29
55.30 55.31 55.32 56.1 56.2 56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25 56.26 56.27 56.28 56.29 56.30 56.31 56.32 56.33 56.34 57.1 57.2 57.3 57.4
57.5
57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31 57.32 57.33 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 62.1 62.2 62.3 62.4 62.5 62.6 62.7
62.8 62.9
62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13
64.14 64.15
64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25
64.26
64.27 64.28
64.29 64.30 64.31 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9
66.10
66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27
67.28
67.29 67.30 67.31 67.32 67.33 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 70.33 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26
71.27
71.28 71.29 71.30 71.31 71.32 71.33 72.1 72.2 72.3
72.4
72.5 72.6 72.7 72.8 72.9 72.10
72.11
72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29
72.30
73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15
73.16 73.17
73.18 73.19 73.20 73.21 73.22
73.23
74.1 74.2
74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31 74.32 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11
75.12 75.13 75.14
75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 75.32 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28 76.29 76.30 76.31 76.32 76.33 76.34 76.35 77.1 77.2 77.3 77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 78.1 78.2 78.3 78.4 78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24
78.25 78.26 78.27 78.28 78.29 78.30
79.1 79.2 79.3 79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18
79.19 79.20 79.21
79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 79.32 79.33 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9
80.10 80.11 80.12
80.13 80.14 80.15 80.16 80.17 80.18 80.19 80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 80.32 80.33 80.34 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27
81.28 81.29 81.30
82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 82.33 82.34 82.35 82.36 82.37 83.1 83.2 83.3 83.4 83.5 83.7 83.6 83.8 83.9 83.10 83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20
83.21 83.22 83.23
83.24 83.25 83.26 83.27 83.28 83.29 83.30 83.31 83.32 83.33 84.1 84.2 84.3 84.4 84.5 84.6 84.7 84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16
84.17 84.18 84.19
84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29 84.30 85.1 85.2 85.3 85.4 85.5
85.6 85.7 85.8
85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17
85.18 85.19 85.20 85.21 85.22
85.23 85.24 85.25 85.26 85.27 85.28 85.29 85.30 85.31
86.1 86.2 86.3 86.4 86.5
86.6 86.7 86.8 86.9 86.10 86.11 86.12
86.13 86.14 86.15
86.16 86.17 86.18 86.19 86.20 86.21
86.22 86.23 86.24
86.25 86.26 86.27 86.28 86.29 86.30 86.31 87.1 87.2 87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13
87.14 87.15 87.16
87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30 87.31 87.32 88.1 88.2 88.3 88.4 88.5 88.6 88.7 88.8 88.9 88.10 88.11 88.12
88.13 88.14 88.15
88.16 88.17
88.18 88.19 88.20 88.21 88.22 88.23 88.24 88.25 88.26 88.27 88.28 88.29 89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11 89.12 89.13 89.14 89.15 89.16 89.17 89.18 89.19 89.20 89.21 89.22 89.23
89.24
89.25 89.26 89.27 89.28 89.29 89.30
89.31
90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8 90.9 90.10 90.11 90.12 90.13 90.14 90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27 90.28 90.29 90.30 90.31 90.32 90.33 91.1 91.2 91.3 91.4 91.5 91.6 91.7 91.8 91.9 91.10 91.11
91.12
91.13 91.14 91.15 91.16 91.17 91.18 91.19 91.20 91.21 91.22 91.23 91.24 91.25 91.26 91.27 91.28 91.29 91.30 91.31 91.32 92.1 92.2 92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11 92.12 92.13 92.14 92.15 92.16 92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30 92.31 92.32 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11 93.12 93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20 93.21 93.22 93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31 93.32 94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15 94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29 94.30 94.31 94.32 95.1 95.2 95.3 95.4 95.5 95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21 95.22 95.23 95.24 95.25 95.26 95.27 95.28 95.29 95.30 95.31 96.1 96.2 96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15 96.16 96.17 96.18 96.19 96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 97.1 97.2 97.3 97.4 97.5 97.6 97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16 97.17 97.18 97.19 97.20 97.21 97.22 97.23 97.24 97.25 97.26 97.27 97.28 97.29 97.30 97.31 98.1 98.2 98.3 98.4 98.5 98.6 98.7 98.8 98.9 98.10 98.11 98.12 98.13 98.14 98.15 98.16 98.17 98.18 98.19 98.20 98.21 98.22 98.23 98.24 98.25 98.26 98.27 98.28 98.29 98.30 98.31 98.32 98.33 99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30 99.31 100.1 100.2 100.3 100.4 100.5 100.6
100.7
100.8 100.9 100.10 100.11 100.12 100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 100.32 100.33 101.1 101.2 101.3 101.4 101.5 101.6 101.7 101.8 101.9 101.10 101.11 101.12 101.13
101.14
101.15 101.16 101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 101.30 101.31 102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 102.32 102.33 103.1 103.2 103.3 103.4 103.5 103.6 103.7
103.8 103.9 103.10 103.11
103.12 103.13
103.14
103.15 103.16
103.17 103.18 103.19 103.20 103.21 103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29
103.30
104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15
104.16
104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 104.31 104.32 105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14
105.15 105.16
105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 105.33 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9
106.10 106.11
106.12 106.13
106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29
106.30 106.31 106.32 106.33 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8
107.9 107.10 107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25 107.26 107.27 107.28 107.29 107.30 107.31 107.32 108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8 108.9 108.10 108.11 108.12 108.13 108.14
108.15 108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28 108.29 108.30 108.31 109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13
109.14 109.15 109.16 109.17 109.18
109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26 109.27 109.28 109.29 109.30 110.1 110.2 110.3 110.4 110.5 110.6 110.7 110.8 110.9 110.10 110.11 110.12 110.13 110.14 110.15 110.16 110.17 110.18
110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29 110.30 110.31 110.32 111.1 111.2 111.3 111.4 111.5 111.6 111.7 111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19
111.20 111.21
111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30 111.31 111.32 111.33 112.1 112.2 112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15 112.16 112.17 112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25 112.26
112.27
112.28 112.29 112.30 112.31 112.32 113.1 113.2 113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12
113.13
113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21
113.22
113.23 113.24 113.25 113.26 113.27 113.28 113.29 113.30 113.31 114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.8 114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18 114.19 114.20 114.21 114.22
114.23
114.24 114.25 114.26 114.27 114.28 114.29 114.30 114.31 114.32 114.33
115.1
115.2 115.3 115.4 115.5 115.6 115.7 115.8 115.9 115.10 115.11 115.12 115.13 115.14 115.15 115.16 115.17 115.18 115.19 115.20 115.21
115.22
115.23 115.24 115.25 115.26 115.27
115.28
115.29 115.30 115.31 116.1 116.2 116.3 116.4 116.5 116.6 116.7 116.8 116.9 116.10 116.11 116.12 116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21 116.22 116.23 116.24 116.25 116.26 116.27 116.28 116.29 116.30 116.31 116.32 117.1 117.2
117.3
117.4 117.5 117.6 117.7 117.8 117.9 117.10
117.11
117.12 117.13 117.14 117.15 117.16 117.17 117.18 117.19 117.20 117.21
117.22
117.23 117.24 117.25 117.26 117.27 117.28 117.29
117.30
118.1 118.2 118.3 118.4 118.5 118.6 118.7 118.8 118.9 118.10 118.11
118.12 118.13 118.14
118.15 118.16 118.17 118.18 118.19
118.20 118.21
118.22 118.23 118.24 118.25 118.26 118.27 118.28 118.29 118.30 118.31 118.32 119.1 119.2 119.3 119.4 119.5 119.6 119.7 119.8 119.9 119.10 119.11 119.12 119.13 119.14 119.15 119.16 119.17 119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30 119.31 119.32 120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11
120.12 120.13
120.14 120.15 120.16 120.17 120.18 120.19 120.20 120.21 120.22 120.23 120.24 120.25 120.26 120.27 120.28 120.29 120.30 120.31 120.32 121.1 121.2 121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14 121.15
121.16
121.17 121.18 121.19 121.20 121.21 121.22 121.23 121.24 121.25 121.26 121.27 121.28 121.29 121.30 121.31 121.32 121.33
122.1 122.2
122.3 122.4 122.5 122.6 122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20 122.21 122.22 122.23 122.24 122.25 122.26 122.27 122.28 122.29 122.30 123.1 123.2 123.3 123.4 123.5 123.6 123.7 123.8 123.9 123.10 123.11
123.12 123.13
123.14 123.15 123.16 123.17 123.18 123.19 123.20 123.21 123.22 123.23 123.24 123.25 123.26 123.27 123.28 123.29 123.30 123.31 123.32 123.33 123.34 124.1 124.2 124.3
124.4 124.5
124.6 124.7 124.8 124.9 124.10 124.11 124.12 124.13 124.14
124.15 124.16
124.17 124.18 124.19 124.20 124.21 124.22 124.23 124.24 124.25 124.26 124.27 124.28 124.29 124.30 124.31 125.1 125.2 125.3 125.4 125.5 125.6 125.7 125.8 125.9 125.10
125.11 125.12
125.13 125.14 125.15 125.16 125.17 125.18 125.19 125.20 125.21 125.22 125.23 125.24 125.25 125.26 125.27 125.28 125.29 126.1 126.2 126.3 126.4 126.5 126.6 126.7 126.8 126.9 126.10 126.11 126.12 126.13 126.14 126.15 126.16 126.17 126.18 126.19 126.20 126.21 126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30 126.31 126.32 127.1 127.2 127.3 127.4 127.5 127.6
127.7 127.8
127.9 127.10
127.11 127.12 127.13 127.14 127.15 127.16 127.17 127.18 127.19 127.20
127.21 127.22
127.23 127.24 127.25 127.26 127.27 127.28 127.29 127.30 127.31 127.32 128.1 128.2 128.3 128.4 128.5
128.6 128.7
128.8 128.9 128.10
128.11 128.12 128.13 128.14 128.15 128.16 128.17 128.18 128.19 128.20 128.21 128.22 128.23 128.24 128.25 128.26 128.27 128.28 128.29 128.30 128.31 129.1 129.2 129.3 129.4 129.5 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15 129.16 129.17 129.18 129.19 129.20 129.21 129.22 129.23 129.24 129.25 129.26 129.27 129.28 129.29 129.30 129.31 129.32 129.33 129.34 129.35 130.1 130.2 130.3 130.4 130.5 130.6 130.7 130.8 130.9 130.10 130.11 130.12 130.13 130.14 130.15 130.16 130.17 130.18 130.19 130.20 130.21 130.22 130.23 130.24 130.25 130.26 130.27 130.28 130.29 130.30 130.31 130.32 130.33 130.34
131.1
131.2 131.3 131.4 131.5 131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14 131.15 131.16 131.17 131.18 131.19 131.20 131.21 131.22 131.23 131.24 131.25 131.26 131.27 131.28 131.29 131.30 131.31 131.32 131.33 131.34 132.1 132.2 132.3 132.4 132.5 132.6
132.7 132.8
132.9 132.10 132.11 132.12 132.13 132.14 132.15 132.16 132.17 132.18 132.19 132.20 132.21 132.22 132.23 132.24 132.25 132.26 132.27 132.28 132.29 132.30 132.31 132.32 132.33 132.34 133.1 133.2 133.3 133.4 133.5 133.6 133.7 133.8 133.9 133.10 133.11 133.12 133.13 133.14 133.15 133.16 133.17
133.18
133.19 133.20
133.21 133.22 133.23 133.24 133.25 133.26 133.27 133.28 133.29 133.30 133.31 133.32 134.1 134.2 134.3 134.4 134.5 134.6 134.7 134.8 134.9 134.10 134.11 134.12 134.13 134.14 134.15 134.16 134.17 134.18 134.19 134.20 134.21 134.22 134.23 134.24 134.25 134.26 134.27 134.28 134.29 134.30 134.31 134.32 134.33 135.1 135.2 135.3 135.4 135.5 135.6 135.7 135.8 135.9 135.10 135.11 135.12 135.13 135.14 135.15 135.16 135.17 135.18 135.19 135.20 135.21 135.22 135.23 135.24 135.25 135.26 135.27 135.28 135.29 135.30 135.31 135.32 135.33 136.1 136.2 136.3
136.4 136.5
136.6 136.7 136.8 136.9 136.10 136.11 136.12
136.13
136.14 136.15 136.16 136.17 136.18 136.19 136.20 136.21 136.22 136.23 136.24 136.25 136.26 136.27 136.28 136.29 136.30 136.31 137.1 137.2 137.3 137.4 137.5 137.6 137.7 137.8 137.9 137.10 137.11 137.12
137.13
137.14 137.15 137.16 137.17 137.18 137.19 137.20 137.21 137.22 137.23 137.24 137.25
137.26
137.27 137.28 137.29 137.30 137.31 138.1 138.2 138.3 138.4 138.5 138.6
138.7 138.8
A bill for an act
relating to taxation; modifying individual income taxes, corporate franchise taxes,
property taxes, local government aids, minerals taxes, sales and use taxes, gross
receipts taxes, excise taxes, and other tax-related provisions; modifying income
tax credits and subtractions; expanding the child tax credit and providing for a
minimum credit; providing for nonconformity to certain worker classification
rules; providing for disclosure of certain corporate franchise tax information;
providing for direct free filing; requiring a corporate tax base erosion study;
modifying property tax exemptions, credits, classifications, and abatements;
adjusting local government aid calculations and payments and forgiving local
government aid penalties; providing for an advance homestead credit for seniors;
providing for transfers and distributions of proceeds of minerals taxes; providing
for issuance of revenue bonds; providing for an amusement device gross receipts
tax in lieu of the sales and use tax; providing sales and use tax construction
exemptions; repealing the tax on illegal marijuana and controlled substances;
providing special tax increment financing authority; authorizing cities and counties
to impose local sales and use taxes for certain projects; establishing a local sales
tax equalization distribution; providing for state auditor oversight of local sales
and use taxes; modifying certain special local taxes; providing for taxpayer
assistance and outreach grants; providing aid for various uses; providing for the
establishment of land valuation districts; making technical changes; requiring
reports; transferring money; appropriating money; amending Minnesota Statutes
2022, sections 10A.02, subdivision 11b; 10A.322, subdivision 4; 116U.27,
subdivision 2; 123B.53, subdivision 1; 123B.71, subdivision 8; 270C.21; 270C.445,
subdivision 6; 272.02, subdivisions 7, 19, by adding subdivisions; 273.13,
subdivision 22; 273.135, subdivision 2; 273.1393; 273.38; 273.41; 275.065, by
adding a subdivision; 276.04, subdivision 2, as amended, by adding a subdivision;
276A.01, subdivision 17; 276A.06, subdivision 8; 289A.08, subdivision 1; 289A.12,
subdivision 18; 290.0132, by adding a subdivision; 290.0683, subdivision 3;
290.92, by adding a subdivision; 290A.03, by adding subdivisions; 295.53,
subdivision 4a; 297A.66, subdivision 3, by adding a subdivision; 297A.68,
subdivisions 3a, 45; 297A.99, subdivision 3, by adding a subdivision; 297I.20,
subdivision 4; 298.17; 298.28, subdivision 8; 298.282, subdivision 1; 298.292,
subdivision 2; 375.192, subdivision 2; 446A.086, subdivision 1; 469.104; 469.1812,
by adding a subdivision; 469.1813, subdivisions 1, 6, by adding a subdivision;
469.190, subdivisions 1, 7; 474A.091, subdivisions 2, 2a; 609.902, subdivision 4;
Minnesota Statutes 2023 Supplement, sections 41B.0391, subdivision 4; 123B.71,
subdivision 12; 126C.40, subdivision 6; 273.13, subdivision 25; 273.1392; 275.065,
subdivision 3; 290.01, subdivision 19; 290.0132, subdivision 34; 290.0134,
subdivision 20; 290.06, subdivision 23; 290.0661, subdivisions 1, 8, by adding a
subdivision; 290.0671, subdivision 1a; 290.0693, subdivisions 1, 6, 8; 290.0695,
subdivision 2; 290A.03, subdivisions 3, 13; 297A.61, subdivision 3; 297A.99,
subdivision 1; 297E.06, subdivision 4; 297H.13, subdivision 2; 298.018, subdivision
1; 298.28, subdivisions 7a, 16; 477A.30, subdivisions 4, 5, 6, 7; 477A.35,
subdivision 6; Laws 1986, chapter 396, section 5, as amended; Laws 1986, chapter
400, section 44, as amended; Laws 2010, chapter 389, article 7, section 22, as
amended; Laws 2014, chapter 308, article 6, section 9, as amended; Laws 2017,
First Special Session chapter 1, article 6, section 22; Laws 2023, chapter 1, sections
22; 28; proposing coding for new law in Minnesota Statutes, chapters 270B; 273;
289A; 290A; 295; 297A; 428A; repealing Minnesota Statutes 2022, sections
13.4967, subdivision 5; 297D.02; 297D.03; 297D.05; 297D.09, subdivisions 1, 2;
297D.12; 297D.13; Minnesota Statutes 2023 Supplement, sections 297A.99,
subdivision 3a; 297D.01; 297D.04; 297D.06; 297D.07; 297D.08; 297D.085;
297D.09, subdivision 1a; 297D.10; 297D.11; 477A.30, subdivision 8; Laws 2023,
chapter 64, article 15, section 24.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES
Section 1.
Minnesota Statutes 2022, section 10A.02, subdivision 11b, is amended to read:
Subd. 11b.
Data privacy related to electronic reporting system.
new text begin (a) new text end The board may
develop and maintain systems to enable treasurers to enter and store electronic records
online for the purpose of complying with this chapter. Data entered into such systems by
treasurers or their authorized agents is not government data under chapter 13 and may not
be accessed or used by the board for any purpose without the treasurer's written consent.
Data from such systems that has been submitted to the board as a filed report is government
data under chapter 13.
new text begin
(b) For purposes of administering the refund under section 290.06, subdivision 23, the
board may access or use the following data entered and stored in an electronic reporting
system and share the data with the commissioner of revenue: (1) the amount of the
contribution; (2) the name and address of the person requesting the refund; (3) any unique
identifier for the contribution; (4) the name and campaign identification number of the party
or candidate that received the contribution; and (5) the date on which the contribution was
received. Data accessed, used, or maintained by the board under this paragraph is private
data on individuals, as defined in section 13.02, subdivision 12.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2026.
new text end
Sec. 2.
Minnesota Statutes 2022, section 10A.322, subdivision 4, is amended to read:
Subd. 4.
Refund deleted text begin receipt formsdeleted text end new text begin receiptsnew text end ; penalty.
(a) The board must make available
to a political party on request and to any candidate for whom an agreement under this section
is effective, deleted text begin a supply ofdeleted text end official new text begin electronic new text end refund deleted text begin receipt formsdeleted text end new text begin receiptsnew text end that state in boldface
type that:
(1) a contributor who is given a receipt deleted text begin formdeleted text end is eligible to claim a refund as provided in
section 290.06, subdivision 23; and
(2) if the contribution is to a candidate, that the candidate has signed an agreement to
limit campaign expenditures as provided in this section.
deleted text begin
The forms must provide duplicate copies of the receipt to be attached to the contributor's
claim.
deleted text end
new text begin
An electronic receipt must only be issued for a contribution of $10 or more. Each
receipt must include a unique receipt validation number that allows the commissioner of
revenue to verify the information on the receipt with the Campaign Finance Board. A
political party or candidate may provide a printed copy of the electronic receipt to the
contributor.
new text end
new text begin
(b) At least once a week, the board must provide the commissioner of revenue a receipt
validation report. For each contribution reported to the board during the week, the report
must include:
new text end
new text begin
(1) the date and amount of the contribution;
new text end
new text begin
(2) the name and address of the contributor;
new text end
new text begin
(3) the name and campaign identification number of the party or candidate that received
the contribution; and
new text end
new text begin
(4) the receipt validation number assigned to the contribution.
new text end
deleted text begin (b)deleted text end new text begin (c)new text end The willful issuance of an official refund receipt deleted text begin form or a facsimile of onedeleted text end to
any of the candidate's contributors by a candidate or treasurer of a candidate who did not
sign an agreement under this section is subject to a civil penalty of up to $3,000 imposed
by the board.
deleted text begin (c)deleted text end new text begin (d)new text end The willful issuance of an official refund receipt deleted text begin form or a facsimiledeleted text end to an
individual not eligible to claim a refund under section 290.06, subdivision 23, is subject to
a civil penalty of up to $3,000 imposed by the board.
deleted text begin (d)deleted text end new text begin (e)new text end A violation of paragraph deleted text begin (b)deleted text end new text begin (c)new text end or deleted text begin (c)deleted text end new text begin (d)new text end is a misdemeanor.
new text begin
(f) A receipt validation report and a receipt validation number prepared pursuant to this
section are private data on individuals, as defined in section 13.02, subdivision 12.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for contributions made after December
31, 2025.
new text end
Sec. 3.
Minnesota Statutes 2023 Supplement, section 41B.0391, subdivision 4, is amended
to read:
Subd. 4.
Authority duties.
(a) The authority shall:
(1) approve and certify or recertify beginning farmers as eligible for the program under
this section;
(2) approve and certify or recertify owners of agricultural assets as eligible for the tax
credit under subdivision 2 subject to the allocation limits in paragraph (c);
(3) provide necessary and reasonable assistance and support to beginning farmers for
qualification and participation in financial management programs approved by the authority;
(4) refer beginning farmers to agencies and organizations that may provide additional
pertinent information and assistance; and
(5) notwithstanding section 41B.211, the Rural Finance Authority must share information
with the commissioner of revenue to the extent necessary to administer provisions under
this subdivision and section 290.06, subdivisions 37 and 38. The Rural Finance Authority
must annually notify the commissioner of revenue of approval and certification or
recertification of beginning farmers and owners of agricultural assets under this section.
For credits under subdivision 2, the notification must include the amount of credit approved
by the authority and stated on the credit certificate.
(b) The certification of a beginning farmer or an owner of agricultural assets under this
section is valid for the year of the certification and the two following years, after which
time the beginning farmer or owner of agricultural assets must apply to the authority for
recertification.
(c) For credits for owners of agricultural assets allowed under subdivision 2, the authority
must not allocate more than deleted text begin $6,500,000 for taxable years beginning after December 31,
2022, and before January 1, 2024, anddeleted text end $4,000,000 deleted text begin fordeleted text end new text begin each new text end taxable deleted text begin years beginning after
December 31, 2023deleted text end new text begin yearnew text end . The authority must allocate credits on a first-come, first-served
basis beginning on January 1 of each year, except that recertifications for the second and
third years of credits under subdivision 2, paragraph (a), clauses (1) and (2), have first
priority. deleted text begin Any amount authorized but not allocated for taxable years ending before January
1, 2023, is canceled and is not allocated for future taxable years. For taxable years beginning
after December 31, 2022,deleted text end Any amount authorized but not allocated in any taxable year does
not cancel and is added to the allocation for the next taxable year. For each taxable year,
50 percent of newly allocated credits must be allocated to emerging farmers. Any portion
of a taxable year's newly allocated credits that is reserved for emerging farmers that is not
allocated by deleted text begin September 30deleted text end new text begin May 31new text end of the taxable year is available for allocation to other
credit allocations beginning on deleted text begin Octoberdeleted text end new text begin Junenew text end 1.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2023.
new text end
Sec. 4.
new text begin
[270B.163] DISCLOSURE OF CERTAIN CORPORATE FRANCHISE TAX
INFORMATION.
new text end
new text begin
(a) Except as otherwise provided in this section, within one month from the first day of
the third calendar year following the calendar year in which a taxpayer's taxable year ends,
the commissioner must make the following information available on a website:
new text end
new text begin
(1) a corporation's corporate franchise tax return required under section 289A.18,
subdivision 1, and any amended or adjusted returns;
new text end
new text begin
(2) all corporate franchise tax forms relating to the calculation of income, apportionment,
and calculation of tax; and
new text end
new text begin
(3) the corporation's identity for state corporate franchise tax purposes.
new text end
new text begin
(b) This section does not authorize the commissioner to disclose a corporation's federal
return or federal return information.
new text end
new text begin
(c) This section applies to a corporation required to file a return under section 289A.08,
subdivision 3, that has $250,000,000 or more in aggregate gross sales or receipts in a taxable
year as determined by the original or most recent amended or adjusted return, including a
unitary business under section 290.17, subdivision 4.
new text end
new text begin
(d) Compliance with this section by the commissioner is not a violation of this chapter.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for information required to be made
available in calendar years beginning after December 31, 2024.
new text end
Sec. 5.
Minnesota Statutes 2022, section 289A.08, subdivision 1, is amended to read:
Subdivision 1.
Generally; individuals.
(a) A taxpayer must file a return for each taxable
year the taxpayer is required to file a return under section 6012 of the Internal Revenue
Code or meets the requirements under paragraph (d) to file a return, except that:
(1) an individual who is not a Minnesota resident for any part of the year is not required
to file a Minnesota income tax return if the individual's gross income derived from Minnesota
sources as determined under sections 290.081, paragraph (a), and 290.17, is less than the
filing requirements for a single individual who is a full year resident of Minnesota;
(2) an individual who is a Minnesota resident is not required to file a Minnesota income
tax return if the individual's gross income derived from Minnesota sources as determined
under section 290.17, less the subtractions allowed under section 290.0132, subdivisions
12 and 15, is less than the filing requirements for a single individual who is a full-year
resident of Minnesota.
(b) The decedent's final income tax return, and other income tax returns for prior years
where the decedent had gross income in excess of the minimum amount at which an
individual is required to file and did not file, must be filed by the decedent's personal
representative, if any. If there is no personal representative, the return or returns must be
filed by the transferees, as defined in section 270C.58, subdivision 3, who receive property
of the decedent.
(c) The term "gross income," as it is used in this section, has the same meaning given it
in section 290.01, subdivision 20.
(d) The commissioner of revenue must annually determine the gross income levels at
which individuals are required to file a return for each taxable year based on the amounts
allowed as a deduction under section 290.0123.
new text begin
(e) Notwithstanding paragraph (a), an individual must file a Minnesota income tax return
for each taxable year that the taxpayer has made an election to receive advance payments
of the child tax credit under section 290.0661, subdivision 8.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2024.
new text end
Sec. 6.
new text begin
[289A.081] DIRECT FREE FILING OF INDIVIDUAL RETURNS.
new text end
new text begin
(a) The commissioner must establish an electronic filing system through which taxpayers
may directly file an electronic individual income tax return free of charge. The commissioner
may contract with a software vendor to develop the filing system required under this section,
but the vendor must not offer paid tax preparation services for Minnesota individual income
taxpayers for tax years that the system is active, and the filing system must be made available
on the Department of Revenue website.
new text end
new text begin
(b) To the extent feasible, the commissioner must coordinate the state filing system
under this section with federal direct file options.
new text end
new text begin
(c) For taxable years beginning after December 31, 2024, the filing system established
under this section must include the ability to file a sufficient number of tax forms that the
commissioner estimates at least 70 percent of resident individual income tax returns could
be filed using the system.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 7.
Minnesota Statutes 2022, section 290.0132, is amended by adding a subdivision
to read:
new text begin Subd. 36. new text end
new text begin Discharges of indebtedness; coerced debt. new text end
new text begin
The amount of discharge of
indebtedness awarded to a claimant under section 332.74, subdivision 3, is a subtraction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2023.
new text end
Sec. 8.
Minnesota Statutes 2023 Supplement, section 290.06, subdivision 23, is amended
to read:
Subd. 23.
Refund of contributions to political parties and candidates.
(a) A taxpayer
may claim a refund equal to the amount of the taxpayer's contributions made in the calendar
year to candidates and to a political party. The maximumnew text begin totalnew text end refund new text begin per calendar year new text end for
an individual must not exceed $75 and for a married couple, filing jointly, must not exceed
$150. new text begin The commissioner must not issue a refund, whether in one payment or in aggregate,
to a taxpayer that exceeds the maximum refund amounts specified in this subdivision. new text end A
refund of a contribution is allowed only if the taxpayer filesnew text begin :
new text end
new text begin (1)new text end a form required by the commissioner and attaches to the form deleted text begin a copy ofdeleted text end an official
refund receipt deleted text begin formdeleted text end issued by the candidate or party and signed by the candidate, the treasurer
of the candidate's principal campaign committee, or the chair or treasurer of the party unit,
after the contribution was receiveddeleted text begin . The receipt forms must be numbered, and the data on
the receipt that are not public must be made available to the campaign finance and public
disclosure board upon its requestdeleted text end new text begin ; or
new text end
new text begin (2) a claim using the electronic filing system authorized in paragraph (i)new text end .
new text begin
The form or claim must include one or more unique receipt validation numbers from receipts
issued pursuant to section 10A.322, subdivision 4.
new text end
new text begin (b)new text end A claim must be filed with the commissioner no sooner than January 1 of the calendar
year in which the contribution was made and no later than April 15 of the calendar year
following the calendar year in which the contribution was made. deleted text begin A taxpayer may file only
one claim per calendar year.deleted text end new text begin A claim must be for a minimum of $10.new text end Amounts paid by the
commissioner after June 15 of the calendar year following the calendar year in which the
contribution was made must include interest at the rate specified in section 270C.405.
deleted text begin (b)deleted text end new text begin (c)new text end No refund is allowed under this subdivision for a contribution to a candidate
unless the candidate:
(1) has signed an agreement to limit campaign expenditures as provided in section
10A.322;
(2) is seeking an office for which voluntary spending limits are specified in section
10A.25; and
(3) has designated a principal campaign committee.
This subdivision does not limit the campaign expenditures of a candidate who does not
sign an agreement but accepts a contribution for which the contributor improperly claims
a refund.
deleted text begin (c)deleted text end new text begin (d)new text end For purposes of this subdivision, "political party" means a major political party
as defined in section 200.02, subdivision 7, or a minor political party qualifying for inclusion
on the income tax or property tax refund form under section 10A.31, subdivision 3a.
A "major party" or "minor party" includes the aggregate of that party's organization
within each house of the legislature, the state party organization, and the party organization
within congressional districts, counties, legislative districts, municipalities, and precincts.
"Candidate" means a candidate as defined in section 10A.01, subdivision 10, except a
candidate for judicial office.
"Contribution" means a gift of money.
deleted text begin (d)deleted text end new text begin (e)new text end The commissioner shall make copies of the form available to the public and
candidates upon request.
deleted text begin (e)deleted text end new text begin (f)new text end The following data collected or maintained by the commissioner under this
subdivision are private: the identities of individuals claiming a refund, the identities of
candidates to whom those individuals have made contributions, and the amount of each
contribution.
deleted text begin (f)deleted text end new text begin (g)new text end The commissioner shall report to the campaign finance and public disclosure
board by each August 1 a summary showing the total number and aggregate amount of
political contribution refunds made on behalf of each candidate and each political party.
These data are public.
deleted text begin (g)deleted text end new text begin (h)new text end The amount necessary to pay claims for the refund provided in this section is
appropriated from the general fund to the commissioner of revenue.
deleted text begin (h) For a taxpayer who files a claim for refund via the Internet or other electronic means,
the commissioner may accept the number on the official receipt as documentation that a
contribution was made rather than the actual receipt as required by paragraph (a)deleted text end new text begin (i) The
commissioner must establish an electronic filing system by which refunds are claimednew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for contributions made after December
31, 2025.
new text end
Sec. 9.
Minnesota Statutes 2023 Supplement, section 290.0661, subdivision 1, is amended
to read:
Subdivision 1.
Definitions.
For the purposes of this section, "qualifying child" has the
meaning given in section 32(c) of the Internal Revenue Code, except:
(1) excluding individuals who attained the age of deleted text begin 18deleted text end new text begin 19new text end or greater in the taxable year;
and
(2) section 32(m) of the Internal Revenue Code does not apply.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2023.
new text end
Sec. 10.
Minnesota Statutes 2023 Supplement, section 290.0661, subdivision 8, is amended
to read:
Subd. 8.
Advance payment of credits.
(a) The commissioner of revenue deleted text begin maydeleted text end new text begin mustnew text end
establish a process to allow taxpayers to elect to receive one or more advance payments of
the credit under this section. The amount of advance payments must be based on the taxpayer
and commissioner's estimate of the amount of credits for which the taxpayer would be
eligible in the taxable year beginning in the calendar year in which the payments were made.
The commissioner must not distribute advance payments to a taxpayer who does not elect
to receive advance payments.
(b) The amount of a taxpayer's credit under this section for the taxable year is reduced
by the amount of advance payments received by the taxpayer in the calendar year during
which the taxable year began. If a taxpayer's advance payments exceeded the credit the
taxpayer was eligible to receive for the taxable year, the taxpayer's liability for tax is increased
by the difference between the amount of advance payments received and the credit amount.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2024.
new text end
Sec. 11.
Minnesota Statutes 2023 Supplement, section 290.0661, is amended by adding
a subdivision to read:
new text begin Subd. 9. new text end
new text begin Minimum credit. new text end
new text begin
(a) An eligible taxpayer is allowed the greater of the credit
allowed under subdivision 2 or the minimum credit described in this subdivision. A taxpayer
is eligible for the minimum credit under this subdivision if:
new text end
new text begin
(1) the taxpayer received an advance payment of the credit under subdivision 8; and
new text end
new text begin
(2) the taxpayer's income was low enough to qualify for the credit under subdivision 2
in the preceding taxable year.
new text end
new text begin
(b) The credit allowed under this subdivision is equal to 50 percent of the credit received
under subdivision 2 in the prior taxable year, unless paragraph (c) applies.
new text end
new text begin
(c) If a taxpayer is claiming fewer qualifying children in the current taxable year than
in the prior taxable year, the minimum credit allowed under this subdivision is equal to 50
percent of credit received under this section in the prior taxable year multiplied by a fraction
in which:
new text end
new text begin
(1) the numerator is the number of qualifying children in the current taxable year; and
new text end
new text begin
(2) the denominator is the number of qualifying children in the prior taxable year.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2024.
new text end
Sec. 12.
Minnesota Statutes 2023 Supplement, section 290.0671, subdivision 1a, is amended
to read:
Subd. 1a.
Definitions.
For purposes of this section, "qualifying older child" means a
qualifying child, as defined in section 32(c) of the Internal Revenue Code, that attained at
least the age of deleted text begin 18deleted text end new text begin 19new text end in the taxable year. For the purposes of determining a qualifying older
child, section 32(m) of the Internal Revenue Code does not apply.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2023.
new text end
Sec. 13.
Minnesota Statutes 2022, section 290.0683, subdivision 3, is amended to read:
Subd. 3.
Allocation.
(a) To qualify for the credit, a taxpayer must contribute to the
Minnesota housing tax credit contribution account. A taxpayer may indicate that a
contribution is intended for a specific qualified project. A taxpayer is prohibited from
contributing to certain projects as provided in section 462A.40, subdivision 3.
(b) The aggregate amount of tax credits allowed to all eligible contributors is limited to
$9,900,000 annually.new text begin If the entire amount is not allocated for 2023, any remaining amount
is available for allocation for 2024.
new text end
(c) Within 30 days after a taxpayer contributes to the account, the agency must file with
the contributing taxpayer a credit certificate statement or return any amounts to the taxpayer
as provided in this paragraph. The agency must send a copy of the credit certificate to the
commissioner. If there are insufficient credits to match the contribution, the agency must
not issue a credit certificate for the amount of the contribution for which there are insufficient
credits, and must return that amount to the taxpayer before issuing any credit certificate.
(d) The credit certificate must state the dollar amount of the contribution made by the
taxpayer and the date the payment was received by the account, and indicate if the
contribution was intended for a specific qualified project.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2022.
new text end
Sec. 14.
Minnesota Statutes 2022, section 290.92, is amended by adding a subdivision to
read:
new text begin Subd. 32. new text end
new text begin Nonconformity to certain worker classification rules. new text end
new text begin
For purposes of
employee classification under this section, "Internal Revenue Code" does not include section
530 of Public Law 95-600, as amended.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2024.
new text end
Sec. 15.
Minnesota Statutes 2023 Supplement, section 290A.03, subdivision 3, is amended
to read:
Subd. 3.
Income.
(a) "Income" means the sum of the following:
(1) federal adjusted gross income as defined in the Internal Revenue Code; and
(2) the sum of the following amounts to the extent not included in clause (1):
(i) all nontaxable income;
(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;
(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;
(vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;
(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;
(xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
the claimant and spouse;
(xii) to the extent not included in federal adjusted gross income, distributions received
by the claimant or spouse from a traditional or Roth style retirement account or plan;
(xiii) nontaxable scholarship or fellowship grants;
(xiv) alimony received to the extent not included in the recipient's income;
(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;
(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; and
(xvii) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code.
In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
by the amount of a net operating loss carryback or carryforward or a capital loss carryback
or carryforward allowed for the year.
(b) "Income" does not include:
(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
(2) amounts of any pension or annuity which was exclusively funded by the claimant
or spouse and which funding payments were not excluded from federal adjusted gross
income in the years when the payments were made;
(3) to the extent included in federal adjusted gross income, amounts contributed by the
claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
the retirement base amount reduced by the amount of contributions excluded from federal
adjusted gross income, but not less than zero;
(4) surplus food or other relief in kind supplied by a governmental agency;
(5) relief granted under this chapter;
(6) child support payments received under a temporary or final decree of dissolution or
legal separation;
(7) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
Public Law 107-16;
(8) alimony paid; deleted text begin or
deleted text end
(9) veterans disability compensation paid under title 38 of the United States Codenew text begin ; or
new text end
new text begin (10) to the extent included in federal adjusted gross income, the amount of discharge of
indebtedness awarded to the claimant under section 332.74, subdivision 3new text end .
(c) The sum of the following amounts may be subtracted from income:
(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
(5) for the claimant's fifth dependent, the exemption amount; and
(6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or
before December 31 of the year for which the taxes were levied, the exemption amount.
(d) For purposes of this subdivision, the following terms have the meanings given:
(1) "exemption amount" means the exemption amount under section 290.0121,
subdivision 1, paragraph (b), for the taxable year for which the income is reported;
(2) "retirement base amount" means the deductible amount for the taxable year for the
claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
to whether the claimant or spouse claimed a deduction; and
(3) "traditional or Roth style retirement account or plan" means retirement plans under
sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for property taxes payable in 2025 and
thereafter.
new text end
Sec. 16. new text begin CORPORATE TAX BASE EROSION STUDY.
new text end
new text begin
By February 1, 2025, the commissioner of revenue must provide a report to the chairs
and ranking minority members of the legislative committees with jurisdiction over taxes
on the extent of corporate tax base erosion in Minnesota; the legislative options for addressing
that erosion, including worldwide combined reporting; and the litigation risks that may arise
by adopting various approaches to address corporate tax base erosion. The report must
comply with Minnesota Statutes, sections 3.195 and 3.197, and specifically include a
discussion of:
new text end
new text begin
(1) the types of international corporate structures and resulting transactions among
commonly controlled businesses that reduce the amount of income that would otherwise
be apportionable to Minnesota under the corporate franchise tax, the effect of which is
commonly referred to as "corporate tax base erosion";
new text end
new text begin
(2) the most reliable published analyses of corporate tax base erosion that could be used
to estimate the revenue impact of that erosion on corporate franchise tax collections in
Minnesota, including how Minnesota's share of aggregate domestic shifted profits may be
calculated;
new text end
new text begin
(3) the extent to which the state's current treatment of income under section 951A of the
Internal Revenue Code addresses corporate tax base erosion and the limitations of this
approach;
new text end
new text begin
(4) other options that exist for modifying the state's corporate franchise tax to address
corporate tax base erosion, including the imposition of worldwide combined reporting;
new text end
new text begin
(5) for worldwide combined reporting:
new text end
new text begin
(i) how the increased amount of income estimated to be apportioned to Minnesota under
a combined reporting system would be equal to the amount of Minnesota's share of shifted
profits described in clause (2);
new text end
new text begin
(ii) the administrative impact of worldwide combined reporting on taxpayers and the
Department of Revenue relative to current law; and
new text end
new text begin
(iii) recommendations for administrative changes to the corporate franchise tax to address
the impacts described in item (ii);
new text end
new text begin
(6) recommendations for any other modifications to current law needed to administer
the options described in clause (4);
new text end
new text begin
(7) the risk of litigation, including federal constitutional claims, under the options
described in clause (4) and recommendations to mitigate those risks; and
new text end
new text begin
(8) any other topic the commissioner deems necessary to properly inform legislators on
this subject.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 17. new text begin APPROPRIATION; POLITICAL CONTRIBUTION REFUND
ELECTRONIC FILING SYSTEM.
new text end
new text begin
$147,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of revenue to establish and implement an electronic filing system for political contribution
refund claims. This appropriation is available until June 30, 2026. The base for this
appropriation is $59,000 for fiscal year 2026 and $59,000 for fiscal year 2027.
new text end
Sec. 18. new text begin TRANSFER; APPROPRIATION; DIRECT FREE FILING SYSTEM.
new text end
new text begin
(a) $5,000,000 in fiscal year 2025 is appropriated from the general fund to the
commissioner of revenue to implement the electronic filing system required in Minnesota
Statutes, section 289A.081. This is a onetime appropriation and is available until June 30,
2027. The base for the appropriation is $2,300,000 in fiscal year 2027.
new text end
new text begin
(b) On July 1, 2024, $5,000,000 is transferred to the general fund from the tax filing
modernization account in the special revenue fund established in Laws 2023, chapter 64,
article 15, section 24.
new text end
Sec. 19. new text begin APPROPRIATION; CORPORATE FRANCHISE TAX INFORMATION
DISCLOSURE.
new text end
new text begin
$480,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of revenue to administer the publication of corporate franchise tax information required
under Minnesota Statutes, section 270B.163. The base for this appropriation is $198,000
in fiscal year 2026 and $198,000 in fiscal year 2027.
new text end
Sec. 20. new text begin APPROPRIATION; CORPORATE TAX BASE EROSION STUDY.
new text end
new text begin
$655,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of revenue to produce the study required in section 16. This is a onetime appropriation and
is available until June 30, 2025.
new text end
Sec. 21. new text begin CHILD TAX CREDIT ACCOUNT; TRANSFER; APPROPRIATION.
new text end
new text begin
(a) By June 30, 2025, and June 30, 2026, the commissioner of revenue must certify to
the commissioner of management and budget:
new text end
new text begin
(1) the total change in individual income tax liability from the credit allowed under
Minnesota Statutes, section 290.0661, subdivision 9, compared to the credit calculated under
Minnesota Statutes, section 290.0661, subdivision 2; and
new text end
new text begin
(2) the total change in individual income tax liability resulting from an 18-year-old
individual to be considered a qualifying child under Minnesota Statutes, section 290.0661,
subdivision 1.
new text end
new text begin
(b) A child tax credit account is created in the special revenue fund. Money in the account
is appropriated to the commissioner of management and budget for transfers to the general
fund required in paragraph (d).
new text end
new text begin
(c) $32,300,000 in fiscal year 2025 is transferred from the general fund to the child tax
credit account established in paragraph (b). This is a onetime transfer.
new text end
new text begin
(d) In fiscal years 2026 and 2027, the commissioner of management and budget must
transfer an amount sufficient to cover the amounts certified in paragraph (a) from the child
tax credit account to the general fund. On June 30, 2027, any amount remaining in the child
tax credit account cancels to the general fund and this section expires.
new text end
Sec. 22. new text begin REPEALER.
new text end
new text begin
Laws 2023, chapter 64, article 15, section 24,
new text end
new text begin
is repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 2, 2024.
new text end
ARTICLE 2
PROPERTY TAXES AND LOCAL GOVERNMENT AIDS
Section 1.
Minnesota Statutes 2022, section 272.02, subdivision 7, is amended to read:
Subd. 7.
Institutions of public charity.
(a) Institutions of purely public charity that are
exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code
are exempt if they meet the requirements of this subdivision. In determining whether real
property is exempt under this subdivision, the following factors must be considered:
(1) whether the stated purpose of the undertaking is to be helpful to others without
immediate expectation of material reward;
(2) whether the institution of public charity is supported by material donations, gifts, or
government grants for services to the public in whole or in part;
(3) whether a material number of the recipients of the charity receive benefits or services
at reduced or no cost, or whether the organization provides services to the public that alleviate
burdens or responsibilities that would otherwise be borne by the government;
(4) whether the income received, including material gifts and donations, produces a
profit to the charitable institution that is not distributed to private interests;
(5) whether the beneficiaries of the charity are restricted or unrestricted, and, if restricted,
whether the class of persons to whom the charity is made available is one having a reasonable
relationship to the charitable objectives; and
(6) whether dividends, in form or substance, or assets upon dissolution, are not available
to private interests.
A charitable organization must satisfy the factors in clauses (1) to (6) for its property to
be exempt under this subdivision, unless there is a reasonable justification for failing to
meet the factors in clause (2), (3), or (5), and the organization provides to the assessor the
factual basis for that justification. If there is reasonable justification for failing to meet the
factors in clause (2), (3), or (5), an organization is a purely public charity under this
subdivision without meeting those factors. After an exemption is properly granted under
this subdivision, it will remain in effect unless there is a material change in facts.
(b) For purposes of this subdivision, a grant is a written instrument or electronic document
defining a legal relationship between a granting agency and a grantee when the principal
purpose of the relationship is to transfer cash or something of value to the grantee to support
a public purpose authorized by law in a general manner instead of acquiring by professional
or technical contract, purchase, lease, or barter property or services for the direct benefit or
use of the granting agency.
(c) In determining whether rental housing property qualifies for exemption under this
subdivision, the following are not gifts or donations to the owner of the rental housing:
(1) rent assistance provided by the government to or on behalf of tenants; and
(2) financing assistance or tax credits provided by the government to the owner on
condition that specific units or a specific quantity of units be set aside for persons or families
with certain income characteristics.
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(d) Property owned by a charitable organization eligible for an exemption under this
subdivision and used to provide rental housing is exempt only if a portion of the property
is permanently used by the charitable organization to provide services to the intended
beneficiaries of organization's work. Such services do not include solely furnishing space
for private and exclusive occupancy.
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new text begin EFFECTIVE DATE. new text end
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This section is effective for taxes payable in 2025 and thereafter.
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Sec. 2.
Minnesota Statutes 2022, section 272.02, subdivision 19, is amended to read:
Subd. 19.
Property used to distribute electricity to farmers.
Electric power distribution
deleted text begin lines and their attachments and appurtenancesdeleted text end new text begin systems, not including substations, or
transmission or generation equipmentnew text end , that are used primarily for supplying electricity to
farmers at retail, are exempt.
new text begin EFFECTIVE DATE. new text end
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This section is effective for assessment year 2024 and thereafter.
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Sec. 3.
Minnesota Statutes 2022, section 272.02, is amended by adding a subdivision to
read:
new text begin Subd. 106. new text end
new text begin Certain property owned by an Indian Tribe. new text end
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Property is exempt that:
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(1) was classified as class 2b under section 273.13, subdivision 24, for taxes payable in
2024;
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(2) is located within a county with a population greater than 5,580 but less than 5,620
according to the 2020 federal census;
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(3) is located in an unorganized territory with a population less than 800 according to
the 2020 federal census; and
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(4) was on January 2, 2023, and is for the current assessment, owned by a federally
recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota.
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new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2025.
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Sec. 4.
Minnesota Statutes 2022, section 272.02, is amended by adding a subdivision to
read:
new text begin Subd. 107. new text end
new text begin Certain property owned by an Indian Tribe. new text end
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(a) Property is exempt that:
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(1) was classified as class 3a under section 273.13, subdivision 24, for taxes payable in
2024;
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(2) is located in a city of the first class with a population greater than 400,000 as of the
2020 federal census;
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(3) was on January 1, 2023, and is for the current assessment, owned by a federally
recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota;
and
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(4) is used exclusively for Tribal purposes or institutions of purely public charity as
defined in subdivision 7.
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(b) Property that qualifies for the exemption under this subdivision is limited to one
parcel that does not exceed 40,000 square feet. Property used for single-family housing,
market-rate apartments, agriculture, or forestry does not qualify for this exemption.
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new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2025.
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Sec. 5.
Minnesota Statutes 2022, section 273.13, subdivision 22, is amended to read:
Subd. 22.
Class 1.
(a) Except as provided in subdivision 23 and in paragraphs (b) and
(c), real estate which is residential and used for homestead purposes is class 1a. In the case
of a duplex or triplex in which one of the units is used for homestead purposes, the entire
property is deemed to be used for homestead purposes. The market value of class 1a property
must be determined based upon the value of the house, garage, and land.
The first $500,000 of market value of class 1a property has a net classification rate of
one percent of its market value; and the market value of class 1a property that exceeds
$500,000 has a classification rate of 1.25 percent of its market value.
(b) Class 1b property includes homestead real estate or homestead manufactured homes
used for the purposes of a homestead by:
(1) any person who is blind as defined in section 256D.35, or the person who is blind
and the spouse of the person who is blind;
(2) any person who is permanently and totally disabled or by the person with a disability
and the spouse of the person with a disability; or
(3) the surviving spouse of a veteran who was permanently and totally disabled
homesteading a property classified under this paragraph for taxes payable in 2008.
Property is classified and assessed under clause (2) only if the government agency or
income-providing source certifies, upon the request of the homestead occupant, that the
homestead occupant satisfies the disability requirements of this paragraph, and that the
property is not eligible for the valuation exclusion under subdivision 34.
Property is classified and assessed under paragraph (b) only if the commissioner of
revenue or the county assessor certifies that the homestead occupant satisfies the requirements
of this paragraph.
Permanently and totally disabled for the purpose of this subdivision means a condition
which is permanent in nature and totally incapacitates the person from working at an
occupation which brings the person an income. The first $50,000 market value of class 1b
property has a net classification rate of .45 percent of its market value. The remaining market
value of class 1b property is classified as class 1a or class 2a property, whichever is
appropriate.
(c) Class 1c property is commercial use real and personal property that abuts public
water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by
the Department of Natural Resources, and is devoted to temporary and seasonal residential
occupancy for recreational purposes but not devoted to commercial purposes for more than
250 days in the year preceding the year of assessment, and that includes a portion used as
a homestead by the owner, which includes a dwelling occupied as a homestead by a
shareholder of a corporation that owns the resort, a partner in a partnership that owns the
resort, or a member of a limited liability company that owns the resort even if the title to
the homestead is held by the corporation, partnership, or limited liability company. For
purposes of this paragraph, property is devoted to a commercial purpose on a specific day
if any portion of the property, excluding the portion used exclusively as a homestead, is
used for residential occupancy and a fee is charged for residential occupancy. Class 1c
property must contain three or more rental units. A "rental unit" is defined as a cabin,
condominium, townhouse, sleeping room, or individual camping site equipped with water
and electrical hookups for recreational vehicles. Class 1c property must provide recreational
activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill
or cross-country ski equipment; provide marina services, launch services, or guide services;
or sell bait and fishing tackle. Any unit in which the right to use the property is transferred
to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies
for class 1c even though it may remain available for rent. A camping pad offered for rent
by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of
the rental agreement, as long as the use of the camping pad does not exceed 250 days. If
the same owner owns two separate parcels that are located in the same township, and one
of those properties is classified as a class 1c property and the other would be eligible to be
classified as a class 1c property if it was used as the homestead of the owner, both properties
will be assessed as a single class 1c property; for purposes of this sentence, properties are
deemed to be owned by the same owner if each of them is owned by a limited liability
company, and both limited liability companies have the same membership. The portion of
the property used as a homestead is class 1a property under paragraph (a). The remainder
of the property is classified as follows: the first deleted text begin $600,000deleted text end new text begin $1,100,000new text end of market value is tier
I, the next deleted text begin $1,700,000deleted text end new text begin $2,600,000new text end of market value is tier II, and any remaining market value
is tier III. The classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent;
and tier III, 1.25 percent. Owners of real and personal property devoted to temporary and
seasonal residential occupancy for recreation purposes in which all or a portion of the
property was devoted to commercial purposes for not more than 250 days in the year
preceding the year of assessment desiring classification as class 1c, must submit a declaration
to the assessor designating the cabins or units occupied for 250 days or less in the year
preceding the year of assessment by January 15 of the assessment year. Those cabins or
units and a proportionate share of the land on which they are located must be designated as
class 1c as otherwise provided. The remainder of the cabins or units and a proportionate
share of the land on which they are located must be designated as class 3a commercial. The
owner of property desiring designation as class 1c property must provide guest registers or
other records demonstrating that the units for which class 1c designation is sought were not
occupied for more than 250 days in the year preceding the assessment if so requested. The
portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center
or meeting room, and (5) other nonresidential facility operated on a commercial basis not
directly related to temporary and seasonal residential occupancy for recreation purposes
does not qualify for class 1c.
(d) Class 1d property includes structures that meet all of the following criteria:
(1) the structure is located on property that is classified as agricultural property under
section 273.13, subdivision 23;
(2) the structure is occupied exclusively by seasonal farm workers during the time when
they work on that farm, and the occupants are not charged rent for the privilege of occupying
the property, provided that use of the structure for storage of farm equipment and produce
does not disqualify the property from classification under this paragraph;
(3) the structure meets all applicable health and safety requirements for the appropriate
season; and
(4) the structure is not salable as residential property because it does not comply with
local ordinances relating to location in relation to streets or roads.
The market value of class 1d property has the same classification rates as class 1a property
under paragraph (a).
new text begin EFFECTIVE DATE. new text end
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This section is effective beginning with assessment year 2025.
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Sec. 6.
Minnesota Statutes 2023 Supplement, section 273.13, subdivision 25, is amended
to read:
Subd. 25.
Class 4.
(a) Class 4a is residential real estate containing four or more units
and used or held for use by the owner or by the tenants or lessees of the owner as a residence
for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a
also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt
under section 272.02, and contiguous property used for hospital purposes, without regard
to whether the property has been platted or subdivided. The market value of class 4a property
has a classification rate of 1.25 percent.
(b) Class 4b includes:
(1) residential real estate containing less than four units, including property rented as a
short-term rental property for more than 14 days in the preceding year, that does not qualify
as class 4bb, other than seasonal residential recreational property;
(2) manufactured homes not classified under any other provision;
(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm
classified under subdivision 23, paragraph (b) containing two or three units; and
(4) unimproved property that is classified residential as determined under subdivision
33.
For the purposes of this paragraph, "short-term rental property" means nonhomestead
residential real estate rented for periods of less than 30 consecutive days.
The market value of class 4b property has a classification rate of 1.25 percent.
(c) Class 4bb includes:
(1) nonhomestead residential real estate containing one unit, other than seasonal
residential recreational property;
(2) a single family dwelling, garage, and surrounding one acre of property on a
nonhomestead farm classified under subdivision 23, paragraph (b); and
(3) a condominium-type storage unit having an individual property identification number
that is not used for a commercial purpose.
Class 4bb property has the same classification rates as class 1a property under subdivision
22.
Property that has been classified as seasonal residential recreational property at any time
during which it has been owned by the current owner or spouse of the current owner does
not qualify for class 4bb.
(d) Class 4c property includes:
(1) except as provided in subdivision 22, paragraph (c), real and personal property
devoted to commercial temporary and seasonal residential occupancy for recreation purposes,
for not more than 250 days in the year preceding the year of assessment. For purposes of
this clause, property is devoted to a commercial purpose on a specific day if any portion of
the property is used for residential occupancy, and a fee is charged for residential occupancy.
Class 4c property under this clause must contain three or more rental units. A "rental unit"
is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
equipped with water and electrical hookups for recreational vehicles. A camping pad offered
for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c
under this clause regardless of the term of the rental agreement, as long as the use of the
camping pad does not exceed 250 days. In order for a property to be classified under this
clause, either (i) the business located on the property must provide recreational activities,
at least 40 percent of the annual gross lodging receipts related to the property must be from
business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid
bookings by lodging guests during the year must be for periods of at least two consecutive
nights; or (B) at least 20 percent of the annual gross receipts must be from charges for
providing recreational activities, or (ii) the business must contain 20 or fewer rental units,
and must be located in a township or a city with a population of 2,500 or less located outside
the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion
of a state trail administered by the Department of Natural Resources. For purposes of item
(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c
property also includes commercial use real property used exclusively for recreational
purposes in conjunction with other class 4c property classified under this clause and devoted
to temporary and seasonal residential occupancy for recreational purposes, up to a total of
two acres, provided the property is not devoted to commercial recreational use for more
than 250 days in the year preceding the year of assessment and is located within two miles
of the class 4c property with which it is used. In order for a property to qualify for
classification under this clause, the owner must submit a declaration to the assessor
designating the cabins or units occupied for 250 days or less in the year preceding the year
of assessment by January 15 of the assessment year. Those cabins or units and a proportionate
share of the land on which they are located must be designated class 4c under this clause
as otherwise provided. The remainder of the cabins or units and a proportionate share of
the land on which they are located will be designated as class 3a. The owner of property
desiring designation as class 4c property under this clause must provide guest registers or
other records demonstrating that the units for which class 4c designation is sought were not
occupied for more than 250 days in the year preceding the assessment if so requested. The
portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center
or meeting room, and (5) other nonresidential facility operated on a commercial basis not
directly related to temporary and seasonal residential occupancy for recreation purposes
does not qualify for class 4c. For the purposes of this paragraph, "recreational activities"
means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country
ski equipment; providing marina services, launch services, or guide services; or selling bait
and fishing tackle;
(2) qualified property used as a golf course if:
(i) it is open to the public on a daily fee basis. It may charge membership fees or dues,
but a membership fee may not be required in order to use the property for golfing, and its
green fees for golfing must be comparable to green fees typically charged by municipal
courses; and
(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with
the golf course is classified as class 3a property;
(3) real property up to a maximum of three acres of land owned and used by a nonprofit
community service oriented organization and not used for residential purposes on either a
temporary or permanent basis, provided that:
(i) the property is not used for a revenue-producing activity for more than six days in
the calendar year preceding the year of assessment; or
(ii) the organization makes annual charitable contributions and donations at least equal
to the property's previous year's property taxes and the property is allowed to be used for
public and community meetings or events for no charge, as appropriate to the size of the
facility.
For purposes of this clause:
(A) "charitable contributions and donations" has the same meaning as lawful gambling
purposes under section 349.12, subdivision 25, excluding those purposes relating to the
payment of taxes, assessments, fees, auditing costs, and utility payments;
(B) "property taxes" excludes the state general tax;
(C) a "nonprofit community service oriented organization" means any corporation,
society, association, foundation, or institution organized and operated exclusively for
charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
Revenue Code; and
(D) "revenue-producing activities" shall include but not be limited to property or that
portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
insurance business, or office or other space leased or rented to a lessee who conducts a
for-profit enterprise on the premises.
Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The
use of the property for social events open exclusively to members and their guests for periods
of less than 24 hours, when an admission is not charged nor any revenues are received by
the organization shall not be considered a revenue-producing activity.
The organization shall maintain records of its charitable contributions and donations
and of public meetings and events held on the property and make them available upon
request any time to the assessor to ensure eligibility. An organization meeting the requirement
under item (ii) must file an application by May 1 with the assessor for eligibility for the
current year's assessment. The commissioner shall prescribe a uniform application form
and instructions;
(4) postsecondary student housing of not more than one acre of land that is owned by a
nonprofit corporation organized under chapter 317A and is used exclusively by a student
cooperative, sorority, or fraternity for on-campus housing or housing located within two
miles of the border of a college campus;
(5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding
manufactured home parks described in items (ii) and (iii), (ii) manufactured home parks as
defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision
3a, and (iii) class I manufactured home parks as defined in section 327C.015, subdivision
2;
(6) real property that is actively and exclusively devoted to indoor fitness, health, social,
recreational, and related uses, is owned and operated by a not-for-profit corporation, and is
located within the metropolitan area as defined in section 473.121, subdivision 2;
(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under
section 272.01, subdivision 2, and the land on which it is located, provided that:
(i) the land is on an airport owned or operated by a city, town, county, Metropolitan
Airports Commission, or group thereof; and
(ii) the land lease, or any ordinance or signed agreement restricting the use of the leased
premise, prohibits commercial activity performed at the hangar.
If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be
filed by the new owner with the assessor of the county where the property is located within
60 days of the sale;
(8) a privately owned noncommercial aircraft storage hangar not exempt under section
272.01, subdivision 2, and the land on which it is located, provided that:
(i) the land abuts a public airport; and
(ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement
restricting the use of the premises, prohibiting commercial use or activity performed at the
hangar; and
(9) residential real estate, a portion of which is used by the owner for homestead purposes,
and that is also a place of lodging, if all of the following criteria are met:
(i) rooms are provided for rent to transient guests that generally stay for periods of 14
or fewer days;
(ii) meals are provided to persons who rent rooms, the cost of which is incorporated in
the basic room rate;
(iii) meals are not provided to the general public except for special events on fewer than
seven days in the calendar year preceding the year of the assessment; and
(iv) the owner is the operator of the property.
The market value subject to the 4c classification under this clause is limited to five rental
units. Any rental units on the property in excess of five, must be valued and assessed as
class 3a. The portion of the property used for purposes of a homestead by the owner must
be classified as class 1a property under subdivision 22;
(10) real property up to a maximum of three acres and operated as a restaurant as defined
under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under
section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to
commercial purposes for not more than 250 consecutive days, or receives at least 60 percent
of its annual gross receipts from business conducted during four consecutive months. Gross
receipts from the sale of alcoholic beverages must be included in determining the property's
qualification under item (ii). The property's primary business must be as a restaurant and
not as a bar. Gross receipts from gift shop sales located on the premises must be excluded.
Owners of real property desiring 4c classification under this clause must submit an annual
declaration to the assessor by February 1 of the current assessment year, based on the
property's relevant information for the preceding assessment year;
(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as
a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public
and devoted to recreational use for marina services. The marina owner must annually provide
evidence to the assessor that it provides services, including lake or river access to the public
by means of an access ramp or other facility that is either located on the property of the
marina or at a publicly owned site that abuts the property of the marina. No more than 800
feet of lakeshore may be included in this classification. Buildings used in conjunction with
a marina for marina services, including but not limited to buildings used to provide food
and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified
as class 3a property; and
(12) real and personal property devoted to noncommercial temporary and seasonal
residential occupancy for recreation purposes.
Class 4c property has a classification rate of 1.5 percent of market value, except that (i)
each parcel of noncommercial seasonal residential recreational property under clause (12)
has the same classification rates as class 4bb property, (ii) manufactured home parks assessed
under clause (5), item (i), have the same classification rate as class 4b property, the market
value of manufactured home parks assessed under clause (5), item (ii), have a classification
rate of 0.75 percent if more than 50 percent of the lots in the park are occupied by
shareholders in the cooperative corporation or association and a classification rate of one
percent if 50 percent or less of the lots are so occupied, and class I manufactured home
parks as defined in section 327C.015, subdivision 2, have a classification rate of 1.0 percent,
(iii) commercial-use seasonal residential recreational property and marina recreational land
as described in clause (11), has a classification rate of one percent for the first $500,000 of
market value, and 1.25 percent for the remaining market value, (iv) the market value of
property described in clause (4) has a classification rate of one percent, (v) the market value
of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent,
(vi) that portion of the market value of property in clause (9) qualifying for class 4c property
has a classification rate of 1.25 percent, and (vii) property qualifying for classification under
clause (3) that is owned or operated by a congressionally chartered veterans organization
has a classification rate of one percent. The commissioner of veterans affairs must provide
a list of congressionally chartered veterans organizations to the commissioner of revenue
by June 30, 2017, and by January 1, 2018, and each year thereafter.
(e) Class 4d property includes:
(1) qualifying low-income rental housing certified to the assessor by the Housing Finance
Agency under section 273.128, subdivision 3. If only a portion of the units in the building
qualify as low-income rental housing units as certified under section 273.128, subdivision
3, only the proportion of qualifying units to the total number of units in the building qualify
for class 4d(1). The remaining portion of the building shall be classified by the assessor
based upon its use. Class 4d(1) also includes the same proportion of land as the qualifying
low-income rental housing units are to the total units in the building. For all properties
qualifying as class 4d(1), the market value determined by the assessor must be based on the
normal approach to value using normal unrestricted rents; and
(2) a unit that is owned by the occupant and used as a homestead by the occupant, and
otherwise meets all the requirements for community land trust property under section 273.11,
subdivision 12, provided that by December 31 of each assessment year, the community land
trust certifies to the assessor that (i) the community land trust owns the real property on
which the unit is located, and (ii) the unit owner is a member in good standing of the
community land trust. deleted text begin For all units qualifying as class 4d(2), the market value determined
by the assessor must be based on the normal approach to value without regard to any
restrictions that apply because the unit is a community land trust property.
deleted text end
(f) Class 4d(1) property has a classification rate of 0.25 percent. Class 4d(2) property
has a classification rate of 0.75 percent.
new text begin EFFECTIVE DATE. new text end
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This section is effective beginning with assessment year 2024.
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Sec. 7.
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[273.1389] ADVANCE HOMESTEAD CREDIT FOR SENIORS.
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new text begin Subdivision 1. new text end
new text begin Eligibility. new text end
new text begin
Homestead property is eligible to receive the advance
homestead credit for seniors under this section if it is owned by an eligible senior claimant
who received homestead treatment on the property in the prior taxes payable year. For the
purposes of this section, "eligible senior claimant" means a claimant who has submitted an
application and has been determined eligible under section 290A.071.
new text end
new text begin Subd. 2. new text end
new text begin Credit amount. new text end
new text begin
For each qualifying property, the amount of the advance
homestead credit for seniors is equal to 50 percent of the amount of the homestead credit
refund the property owner received in the previous year.
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new text begin Subd. 3. new text end
new text begin Certification. new text end
new text begin
No later than January 2 of the year for which an eligible senior
claimant elected to receive the advance homestead credit for seniors under this section, the
commissioner of revenue must calculate and certify to each county auditor credit amounts
under this section. The county auditor must apply the credit to each qualifying property's
first half payment. If a property's credit amount under subdivision 2 exceeds the first half
payment amount after all other applicable credits, the auditor must reduce the advance
homestead credit for seniors so that the first half payment amount is $0. No later than July
1 of the taxes payable year in which the credit is applied, the county auditor must certify
any reductions under this subdivision to the commissioner of revenue under section 270C.85,
subdivision 2. The commissioner shall review the certifications for accuracy and may make
any changes the commissioner deems necessary or return the certification to the county
auditor for correction.
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new text begin Subd. 4. new text end
new text begin Payment. new text end
new text begin
(a) The commissioner of revenue shall reimburse each local taxing
jurisdiction, other than school districts, for the tax reductions granted under this section in
one installment on October 31 of the taxes payable year for which the reductions are granted,
including in each payment any prior year adjustments. The reimbursements related to tax
increments shall be issued in one installment each year on December 26.
new text end
new text begin
(b) The commissioner of revenue shall certify the total of the tax reductions granted
under this section for each taxes payable year within each school district to the commissioner
of education. The commissioner of education shall pay the reimbursement amounts to each
school district as provided in section 273.1392.
new text end
new text begin Subd. 5. new text end
new text begin Appropriation. new text end
new text begin
An amount sufficient to make the payments required by this
section to taxing jurisdictions other than school districts is annually appropriated from the
general fund to the commissioner of revenue. An amount sufficient to make the payments
required by this section for school districts is annually appropriated from the general fund
to the commissioner of education.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with property taxes payable
in 2026.
new text end
Sec. 8.
Minnesota Statutes 2023 Supplement, section 273.1392, is amended to read:
273.1392 PAYMENT; SCHOOL DISTRICTS.
The amounts of bovine tuberculosis credit reimbursements under section 273.113;
conservation tax credits under section 273.119; disaster or emergency reimbursement under
sections 273.1231 to 273.1235; agricultural credits under sections 273.1384 and 273.1387;new text begin
the advance homestead credit for seniors under section 273.1389;new text end aids and credits under
section 273.1398; enterprise zone property credit payments under section 469.171;
metropolitan agricultural preserve reduction under section 473H.10; and electric generation
transition aid under section 477A.24 for school districts, shall be certified to the Department
of Education by the Department of Revenue. The amounts so certified shall be paid according
to section 127A.45, subdivisions 9, 10, and 13.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning July 1, 2026.
new text end
Sec. 9.
Minnesota Statutes 2022, section 273.1393, is amended to read:
273.1393 COMPUTATION OF NET PROPERTY TAXES.
Notwithstanding any other provisions to the contrary, "net" property taxes are determined
by subtracting the credits in the order listed from the gross tax:
(1) disaster credit as provided in sections 273.1231 to 273.1235;
(2) powerline credit as provided in section 273.42;
(3) agricultural preserves credit as provided in section 473H.10;
(4) enterprise zone credit as provided in section 469.171;
(5) disparity reduction credit;
(6) conservation tax credit as provided in section 273.119;
(7) the school bond credit as provided in section 273.1387;
(8) agricultural credit as provided in section 273.1384;
(9) taconite homestead credit as provided in section 273.135;
(10) supplemental homestead credit as provided in section 273.1391; deleted text begin and
deleted text end
(11) the bovine tuberculosis zone credit, as provided in section 273.113deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(12) the advance homestead credit for seniors under section 273.1389.
new text end
The combination of all property tax credits must not exceed the gross tax amount.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with property taxes payable
in 2026.
new text end
Sec. 10.
Minnesota Statutes 2022, section 273.38, is amended to read:
273.38 PERCENTAGE OF ASSESSMENTS; EXCEPTIONS.
The distribution deleted text begin lines and the attachments and appurtenances theretodeleted text end new text begin systems, not
including substations, or transmission or generation equipmentnew text end of cooperative associations
organized under the provisions of Laws 1923, chapter 326, and laws amendatory thereof
and supplemental thereto, and engaged in the electrical heat, light and power business, upon
a mutual, nonprofit and cooperative plan, shall be assessed and taxed as provided in sections
273.40 and 273.41.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2024 and thereafter.
new text end
Sec. 11.
Minnesota Statutes 2022, section 273.41, is amended to read:
273.41 AMOUNT OF TAX; DISTRIBUTION.
There is hereby imposed upon each such cooperative association on December 31 of
each year a tax of $10 for each 100 members, or fraction thereof, of such association. The
tax, when paid, shall be in lieu of all personal property taxes, state, county, or local, upon
deleted text begin distribution lines and the attachments and appurtenances thereto of such associationsdeleted text end new text begin that
part of the association's distribution system, not including substations, or transmission or
generation equipment,new text end located in rural areas. The tax shall be payable on or before March
1 of the next succeeding year, to the commissioner of revenue. If the tax, or any portion
thereof, is not paid within the time herein specified for the payment thereof, there shall be
added thereto a specific penalty equal to ten percent of the amount so remaining unpaid.
Such penalty shall be collected as part of said tax, and the amount of said tax not timely
paid, together with said penalty, shall bear interest at the rate specified in section 270C.40
from the time such tax should have been paid until paid. The commissioner shall deposit
the amount so received in the general fund of the state treasury.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2024 and thereafter.
new text end
Sec. 12.
Minnesota Statutes 2023 Supplement, section 275.065, subdivision 3, is amended
to read:
Subd. 3.
Notice of proposed property taxes.
(a) The county auditor shall prepare and
the county treasurer shall deliver after November 10 and on or before November 24 each
year, by first class mail to each taxpayer at the address listed on the county's current year's
assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
the treasurer may send the notice in electronic form or by electronic mail instead of on paper
or by ordinary mail.
(b) The commissioner of revenue shall prescribe the form of the notice.
(c) The notice must inform taxpayers that it contains the amount of property taxes each
taxing authority proposes to collect for taxes payable the following year. In the case of a
town, or in the case of the state general tax, the final tax amount will be its proposed tax.
The notice must clearly state for each city that has a population over 500, county, school
district, regional library authority established under section 134.201, metropolitan taxing
districts as defined in paragraph (i), and fire protection and emergency medical services
special taxing districts established under section 144F.01, the time and place of a meeting
for each taxing authority in which the budget and levy will be discussed and public input
allowed, prior to the final budget and levy determination. The taxing authorities must provide
the county auditor with the information to be included in the notice on or before the time it
certifies its proposed levy under subdivision 1. The public must be allowed to speak at that
meeting, which must occur after November 24 and must not be held before 6:00 p.m. It
must provide a website address and a telephone number for the taxing authority that taxpayers
may call if they have questions related to the notice and an address where comments will
be received by mail, except that no notice required under this section shall be interpreted
as requiring the printing of a personal telephone number or address as the contact information
for a taxing authority. If a taxing authority does not maintain a website or public offices
where telephone calls can be received by the authority, the authority may inform the county
of the lack of a public website or telephone number and the county shall not list a website
or telephone number for that taxing authority.
(d) The notice must state for each parcel:
(1) the market value of the property as determined under section 273.11, and used for
computing property taxes payable in the following year and for taxes payable in the current
year as each appears in the records of the county assessor on November 1 of the current
year; and, in the case of residential property, whether the property is classified as homestead
or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
values apply and that the values are final values;
(2) the items listed below, shown separately by county, city or town, and state general
tax, agricultural homestead credit under section 273.1384, school building bond agricultural
credit under section 273.1387,new text begin the advance homestead credit for seniors under section
273.1389,new text end voter approved school levy, other local school levy, and the sum of the special
taxing districts, and as a total of all taxing authorities:
(i) the actual tax for taxes payable in the current year; and
(ii) the proposed tax amount.
If the county levy under clause (2) includes an amount for a lake improvement district
as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
must be separately stated from the remaining county levy amount.
In the case of a town or the state general tax, the final tax shall also be its proposed tax
unless the town changes its levy at a special town meeting under section 365.52. If a school
district has certified under section 126C.17, subdivision 9, that a referendum will be held
in the school district at the November general election, the county auditor must note next
to the school district's proposed amount that a referendum is pending and that, if approved
by the voters, the tax amount may be higher than shown on the notice. In the case of the
city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
the St. Paul Library Agency must be listed separately from the remaining amount of the
city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
listed separately from the remaining amount of the county's levy. In the case of a parcel
where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
capacity subject to the areawide tax must each be stated separately and not included in the
sum of the special taxing districts; and
(3) the increase or decrease between the total taxes payable in the current year and the
total proposed taxes, expressed as a percentage.
For purposes of this section, the amount of the tax on homesteads qualifying under the
senior citizens' property tax deferral program under chapter 290B is the total amount of
property tax before subtraction of the deferred property tax amount.
(e) The notice must clearly state that the proposed or final taxes do not include the
following:
(1) special assessments;
(2) levies approved by the voters after the date the proposed taxes are certified, including
bond referenda and school district levy referenda;
(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
in November of the levy year as provided under section 275.73;
(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
after the date the proposed taxes are certified;
(5) amounts necessary to pay tort judgments against the taxing authority that become
final after the date the proposed taxes are certified; and
(6) the contamination tax imposed on properties which received market value reductions
for contamination.
(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
county treasurer to deliver the notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the tax levy.
(g) If the notice the taxpayer receives under this section lists the property as
nonhomestead, and satisfactory documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the homestead classification in that
assessment year, the assessor shall reclassify the property to homestead for taxes payable
in the following year.
(h) In the case of class 4 residential property used as a residence for lease or rental
periods of 30 days or more, the taxpayer must either:
(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
or lessee; or
(2) post a copy of the notice in a conspicuous place on the premises of the property.
The notice must be mailed or posted by the taxpayer by November 27 or within three
days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
notice must be mailed in order to fulfill the requirements of this paragraph.
(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
districts" means the following taxing districts in the seven-county metropolitan area that
levy a property tax for any of the specified purposes listed below:
(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
473.521, 473.547, or 473.834;
(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
(3) Metropolitan Mosquito Control Commission under section 473.711.
For purposes of this section, any levies made by the regional rail authorities in the county
of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
shall be included with the appropriate county's levy.
(j) The governing body of a county, city, or school district may, with the consent of the
county board, include supplemental information with the statement of proposed property
taxes about the impact of state aid increases or decreases on property tax increases or
decreases and on the level of services provided in the affected jurisdiction. This supplemental
information may include information for the following year, the current year, and for as
many consecutive preceding years as deemed appropriate by the governing body of the
county, city, or school district. It may include only information regarding:
(1) the impact of inflation as measured by the implicit price deflator for state and local
government purchases;
(2) population growth and decline;
(3) state or federal government action; and
(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.
The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with property taxes payable
in 2026.
new text end
Sec. 13.
Minnesota Statutes 2022, section 276.04, subdivision 2, as amended by Laws
2024, chapter 85, section 87, is amended to read:
Subd. 2.
Contents of tax statements.
(a) The treasurer shall provide for the printing of
the tax statements. The commissioner of revenue shall prescribe the form of the property
tax statement and its contents. The tax statement must not state or imply that property tax
credits are paid by the state of Minnesota. The statement must contain a tabulated statement
of the dollar amount due to each taxing authority and the amount of the state tax from the
parcel of real property for which a particular tax statement is prepared. The dollar amounts
attributable to the county, the state tax, the voter approved school tax, the other local school
tax, the township or municipality, and the total of the metropolitan special taxing districts
as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
amounts due all other special taxing districts, if any, may be aggregated except that any
levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
under the appropriate county's levy. If the county levy under this paragraph includes an
amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
the amount attributable for that purpose must be separately stated from the remaining county
levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
an amount for public library service under section 134.07, the amount attributable for that
purpose may be separated from the remaining county levy amount. The amount of the tax
on homesteads qualifying under the senior citizens' property tax deferral program under
chapter 290B is the total amount of property tax before subtraction of the deferred property
tax amount. The amount of the tax on contamination value imposed under sections 270.91
to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
amount of any special assessments, may be rounded to the nearest even whole dollar. For
purposes of this section whole odd-numbered dollars may be adjusted to the next higher
even-numbered dollar.
(b) The property tax statements for manufactured homes and sectional structures taxed
as personal property shall contain the same information that is required on the tax statements
for real property.
(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:
(1) the property's estimated market value under section 273.11, subdivision 1;
(2) the property's homestead market value exclusion under section 273.13, subdivision
35;
(3) the property's taxable market value under section 272.03, subdivision 15;
(4) the property's gross tax, before credits;
(5) for agricultural properties, the credits under sections 273.1384 and 273.1387;
(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
new text begin 273.1389; new text end 273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount
of credit received under section 273.135 must be separately stated and identified as "taconite
tax relief"; and
(7) the net tax payable in the manner required in paragraph (a).
(d) If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current year,
and encouraging taxpayers to attend the hearings. If the county allows notices to be included
in the envelope containing the property tax statement, and if more than one taxing district
relative to a given property decides to include a notice with the tax statement, the county
treasurer or auditor must coordinate the process and may combine the information on a
single announcement.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with property taxes payable
in 2026.
new text end
Sec. 14.
Minnesota Statutes 2022, section 289A.08, subdivision 1, is amended to read:
Subdivision 1.
Generally; individuals.
(a) A taxpayer must file a return for each taxable
year the taxpayer is required to file a return under section 6012 of the Internal Revenue
Code or meets the requirements under paragraph (d) to file a return, except that:
(1) an individual who is not a Minnesota resident for any part of the year is not required
to file a Minnesota income tax return if the individual's gross income derived from Minnesota
sources as determined under sections 290.081, paragraph (a), and 290.17, is less than the
filing requirements for a single individual who is a full year resident of Minnesota;
(2) an individual who is a Minnesota resident is not required to file a Minnesota income
tax return if the individual's gross income derived from Minnesota sources as determined
under section 290.17, less the subtractions allowed under section 290.0132, subdivisions
12 and 15, is less than the filing requirements for a single individual who is a full-year
resident of Minnesota.
(b) The decedent's final income tax return, and other income tax returns for prior years
where the decedent had gross income in excess of the minimum amount at which an
individual is required to file and did not file, must be filed by the decedent's personal
representative, if any. If there is no personal representative, the return or returns must be
filed by the transferees, as defined in section 270C.58, subdivision 3, who receive property
of the decedent.
(c) The term "gross income," as it is used in this section, has the same meaning given it
in section 290.01, subdivision 20.
(d) The commissioner of revenue must annually determine the gross income levels at
which individuals are required to file a return for each taxable year based on the amounts
allowed as a deduction under section 290.0123.
new text begin
(e) A claimant who elects to receive advance payments under section 290A.071 must
file a claim for a homestead credit refund as a return to reconcile their advanced payment.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for credits applied to property taxes
payable in 2026 and thereafter.
new text end
Sec. 15.
Minnesota Statutes 2023 Supplement, section 290A.03, subdivision 13, is amended
to read:
Subd. 13.
Property taxes payable.
new text begin (a) new text end "Property taxes payable" means the property tax
exclusive ofnew text begin :
new text end
new text begin (1)new text end special assessments, penalties, and interest payable on a claimant's homestead after
deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2deleted text begin , anddeleted text end new text begin ;
new text end
new text begin (2)new text end any other state paid property tax credits in any calendar year,new text begin except the credit under
section 273.1389;new text end and
new text begin (3)new text end after any refund claimed and allowable under section 290A.04, subdivision 2h, that
is first payable in the year that the property tax is payable.
new text begin (b)new text end In the case of a claimant who makes ground lease payments, "property taxes payable"
includes the amount of the payments directly attributable to the property taxes assessed
against the parcel on which the house is located.
new text begin (c)new text end Regardless of the limitations in section 280A(c)(5) of the Internal Revenue Code,
"property taxes payable" must be apportioned or reduced for the use of a portion of the
claimant's homestead for a business purpose if the claimant deducts any business depreciation
expenses for the use of a portion of the homestead or deducts expenses under section 280A
of the Internal Revenue Code for a business operated in the claimant's homestead.
new text begin (d)new text end For manufactured homes, "property taxes payable" shall also include 17 percent of
the gross rent paid in the preceding year for the site on which the homestead is located.
new text begin (e)new text end When a homestead is owned by two or more persons as joint tenants or tenants in
common, such tenants shall determine between them which tenant may claim the property
taxes payable on the homestead. If they are unable to agree, the matter shall be referred to
the commissioner of revenue whose decision shall be final.
new text begin (f)new text end Property taxes are considered payable in the year prescribed by law for payment of
the taxes.
new text begin (g) new text end In the case of a claim relating to "property taxes payable," the claimant must have
owned and occupied the homestead on January 2 of the year in which the tax is payable and
(i) the property must have been classified as homestead property pursuant to section 273.124,
on or before December 31 of the assessment year to which the "property taxes payable"
relate; or (ii) the claimant must provide documentation from the local assessor that application
for homestead classification has been made on or before December 31 of the year in which
the "property taxes payable" were payable and that the assessor has approved the application.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for refunds based on property taxes
payable in 2026 and thereafter.
new text end
Sec. 16.
Minnesota Statutes 2022, section 290A.03, is amended by adding a subdivision
to read:
new text begin Subd. 17. new text end
new text begin Eligible senior claimant. new text end
new text begin
"Eligible senior claimant" means a claimant who,
for the year property taxes were payable:
new text end
new text begin
(1) attained at least the age of 65; or
new text end
new text begin
(2) in the case of a married claimant filing a joint claim, one spouse has attained at least
the age of 65 and the other spouse has attained at least the age of 62.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for advance payment elections after
December 31, 2024, for credits applied to property taxes payable in 2026 and thereafter.
new text end
Sec. 17.
Minnesota Statutes 2022, section 290A.03, is amended by adding a subdivision
to read:
new text begin Subd. 18. new text end
new text begin Homestead credit refund. new text end
new text begin
"Homestead credit refund" means the refund under
section 290A.04, subdivision 2.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for advance payment elections after
December 31, 2024, for credits applied to property taxes payable in 2026 and thereafter.
new text end
Sec. 18.
new text begin
[290A.071] ADVANCE CREDIT OF HOMESTEAD CREDIT REFUNDS.
new text end
new text begin Subdivision 1. new text end
new text begin Advance payment election established. new text end
new text begin
The commissioner must establish
a process to allow an eligible senior claimant to elect to receive advance credit of the
homestead credit refund, as provided in this section.
new text end
new text begin Subd. 2. new text end
new text begin Election for senior claimants to receive advance payments. new text end
new text begin
At the time of
filing a claim for the homestead credit refund, an eligible senior claimant may elect to
receive an advance credit of the claimant's homestead credit refund for property taxes payable
in the following year by applying for the advance homestead credit for seniors under section
273.1389. The application must be made in the form and manner specified by the
commissioner, but the claimant must attest that they intend to continue to occupy the same
homestead in the following year. To receive an advance credit under this section, a claimant
must submit an application to the commissioner no later than August 15 of the year prior
to the property taxes payable year.
new text end
new text begin Subd. 3. new text end
new text begin Reconciliation. new text end
new text begin
(a) A claimant's homestead credit refund is reduced by the
amount of any advance homestead credit for seniors under section 273.1389 received by
the claimant. If a claimant's credit exceeds the amount of the refund for which the claimant
was eligible, the claimant must repay to the commissioner the difference between the amount
of advance payments received and the credit amount for which the claimant is eligible.
new text end
new text begin
(b) The commissioner must deposit repayments under this subdivision in the general
fund.
new text end
new text begin
(c) A claimant that receives an advance credit under this section and section 273.1389
must file a claim for a homestead credit refund for the property taxes payable year for which
the advanced credit was received. If the claimant does not submit an application by August
15 of the property taxes payable year for which the claimant received an advance credit,
the commissioner may assess a penalty consistent with the penalty for a late individual
income tax return under section 289A.60, subdivision 1, paragraph (c), and interest as
provided in section 289A.55.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for advance payment elections after
December 31, 2024, for credits applied to property taxes payable in 2026 and thereafter.
new text end
Sec. 19.
Minnesota Statutes 2022, section 469.1812, is amended by adding a subdivision
to read:
new text begin Subd. 2a. new text end
new text begin Land bank organization. new text end
new text begin
"Land bank organization" means an organization
that, at least in part, acquires, holds, or manages vacant, blighted, foreclosed, or tax-forfeited
property for future development, redevelopment, or disposal, and that is either:
new text end
new text begin
(1) a nonprofit organization exempt from federal income taxation under section 501(c)(3)
of the Internal Revenue Code whose governing board members are elected or appointed by
the state of Minnesota, any political subdivision of the state of Minnesota, or an agency of
the state of Minnesota or its political subdivisions, or are elected or appointed officials of
the state of Minnesota or any of its political subdivisions; or
new text end
new text begin
(2) a limited liability company of which a nonprofit organization described in clause (1)
is the sole member.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 20.
Minnesota Statutes 2022, section 469.1813, subdivision 1, is amended to read:
Subdivision 1.
Authority.
The governing body of a political subdivision may grant a
current or prospective abatement, by contract or otherwise, of the taxes imposed by the
political subdivision on a parcel of property, which may include personal property and
machinery, or defer the payments of the taxes and abate the interest and penalty that otherwise
would apply, if:
(1) it expects the benefits to the political subdivision of the proposed abatement agreement
to at least equal the costs to the political subdivision of the proposed agreement or intends
the abatement to phase in a property tax increase, as provided in clause (2)(vii); and
(2) it finds that doing so is in the public interest because it will:
(i) increase or preserve tax base;
(ii) provide employment opportunities in the political subdivision;
(iii) provide or help acquire or construct public facilities;
(iv) help redevelop or renew blighted areas;
(v) help provide access to services for residents of the political subdivision;
(vi) finance or provide public infrastructure;
(vii) phase in a property tax increase on the parcel resulting from an increase of 50
percent or more in one year on the estimated market value of the parcel, other than increase
attributable to improvement of the parcel; deleted text begin or
deleted text end
(viii) stabilize the tax base through equalization of property tax revenues for a specified
period of time with respect to a taxpayer whose real and personal property is subject to
valuation under Minnesota Rules, chapter 8100new text begin ;
new text end
new text begin
(ix) provide for the development of affordable housing to households at or below 80
percent of area median income as estimated by the United States Department of Housing
and Urban Development for the political subdivision in which the project is located; or
new text end
new text begin (x) allow the property to be held by a land bank organization for future developmentnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 21.
Minnesota Statutes 2022, section 469.1813, subdivision 6, is amended to read:
Subd. 6.
Duration limit.
(a) A political subdivision may grant an abatement for a period
no longer than 15 years, except as provided under deleted text begin paragraphdeleted text end new text begin paragraphsnew text end (b)new text begin and (c)new text end . The
abatement period commences in the first year in which the abatement granted is either paid
or retained in accordance with section 469.1815, subdivision 2. The subdivision may specify
in the abatement resolution a shorter duration. If the resolution does not specify a period of
time, the abatement is for eight years. If an abatement has been granted to a parcel of property
and the period of the abatement has expired, the political subdivision that granted the
abatement may not grant another abatement for eight years after the expiration of the first
abatement. This prohibition does not apply to improvements added after and not subject to
the first abatement. Economic abatement agreements for real and personal property subject
to valuation under Minnesota Rules, chapter 8100, are not subject to this prohibition and
may be granted successively.
(b) A political subdivision proposing to abate taxes for a parcel may request, in writing,
that the other political subdivisions in which the parcel is located grant an abatement for
the property. If one of the other political subdivisions declines, in writing, to grant an
abatement or if 90 days pass after receipt of the request to grant an abatement without a
written response from one of the political subdivisions, the duration limit for an abatement
for the parcel by the requesting political subdivision and any other participating political
subdivision is increased to 20 years. If the political subdivision which declined to grant an
abatement later grants an abatement for the parcel, the 20-year duration limit is reduced by
one year for each year that the declining political subdivision grants an abatement for the
parcel during the period of the abatement granted by the requesting political subdivision.
The duration limit may not be reduced below the limit under paragraph (a).
new text begin
(c) An abatement under subdivision 1, clause (2), items (ix) and (x), may be granted for
a period no longer than five years. This limit also applies if the resolution does not specify
a period of time.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for abatement resolutions approved after
the day following final enactment.
new text end
Sec. 22.
Minnesota Statutes 2022, section 469.1813, is amended by adding a subdivision
to read:
new text begin Subd. 11. new text end
new text begin Repayment. new text end
new text begin
A land bank organization receiving an abatement under
subdivision 1, clause (2), item (ix) or (x), must repay the abatement with interest if the land
for which the abatement was granted is used for a purpose other than the purpose given by
the land bank organization prior to redevelopment. This subdivision applies immediately
after the abatement under this section expires. Land is subject to repayment under this
subdivision for the same number of years that the abatement was granted. Interest under
this section is payable at the rate determined in section 270C.40, subdivision 5.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 23.
Minnesota Statutes 2023 Supplement, section 477A.30, subdivision 4, is amended
to read:
Subd. 4.
Use of proceeds.
(a) Counties and Tribal governments that receive a distribution
under this section must use the proceeds to fund new or existing family homeless prevention
and assistance projects or programs. These projects or programs may be administered by a
county, a group of contiguous counties jointly acting together, a city, a group of contiguous
cities jointly acting together, a Tribal government, a group of Tribal governments, or a
community-based nonprofit organization. Each project or program must include plans for:
(1) targeting families with children who are eligible for a prekindergarten through grade
12 academic program and are:
(i) living in overcrowded conditions in their current housing;
(ii) paying more than 50 percent of their income for rent; or
(iii) lacking a fixed, regular, and adequate nighttime residence;
(2) targeting unaccompanied youth in need of an alternative residential setting;
(3) connecting families with the social services necessary to maintain the families'
stability in their homes, including but not limited to housing navigation, legal representation,
and family outreach; and
(4) one or more of the following:
(i) providing rental assistance for a specified period of time which may exceed 24 months;
or
(ii) providing support and case management services to improve housing stability,
including but not limited to housing navigation and family outreach.
new text begin
(b) Aid distributions under this section must not be used to cover the costs of removing
from an encampment any individuals living at the encampment or clearing the encampment
site of any personal property used by individuals living at the encampment.
new text end
deleted text begin (b)deleted text end new text begin (c)new text end Counties may choose not to spend all or a portion of the distribution under this
section. Any unspent funds must be returned to the commissioner of revenue by December
31 of the year following the year that the aid was received. Any funds returned to the
commissioner under this paragraph must be added to the overall distribution of aids certified
under this section in the following year. Any unspent funds returned to the commissioner
after the expiration under subdivision 8 are canceled to the general fund.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with aids payable in 2024.
new text end
Sec. 24.
Minnesota Statutes 2023 Supplement, section 477A.30, subdivision 5, is amended
to read:
Subd. 5.
Payments.
The commissioner of revenue must compute the amount of local
homeless prevention aid payable to each county and Tribal government under this section.
On or before August 1 of each year, the commissioner shall certify the amount to be paid
to each county and Tribal government in the following year. The commissioner shall pay
local homeless prevention aid annually at the times provided in section 477A.015. For aids
payable in deleted text begin 2023deleted text end new text begin 2024new text end only, the commissioner must recalculate and recertify the aid under
this section by July 15, deleted text begin 2023deleted text end new text begin 2024new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with aids payable in 2024.
new text end
Sec. 25.
Minnesota Statutes 2023 Supplement, section 477A.30, subdivision 6, is amended
to read:
Subd. 6.
Appropriation.
(a) new text begin For aid payable in 2024, $22,000,000 is appropriated from
the general fund to the commissioner of revenue to make payments to counties required
under this section. For aid payable in 2025 and thereafter, new text end $17,600,000 is annually
appropriated from the general fund to the commissioner of revenue to make payments to
counties required under this section.
(b) new text begin For aid payable in 2024, $3,000,000 is appropriated from the general fund to the
commissioner of revenue to make payments to Tribal governments required under this
section. For aid payable in 2025 and thereafter, new text end $2,400,000 is annually appropriated from
the general fund to the commissioner of revenue to make payments to Tribal governments
required under this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with aids payable in 2024.
new text end
Sec. 26.
Minnesota Statutes 2023 Supplement, section 477A.30, subdivision 7, is amended
to read:
Subd. 7.
Report.
(a) No later than January 15, 2025, the commissioner of revenue must
produce a report on projects and programs funded by counties and Tribal governments under
this section. The report must include a list of the projects and programs, the number of
people served by each, and an assessment of how each project and program impacts people
who are currently experiencing homelessness or who are at risk of experiencing
homelessness, as reported by the counties and Tribal governments to the commissioner by
December 31 each year on a form prescribed by the commissioner. The commissioner must
provide a copy of the report to the chairs and ranking minority members of the legislative
committees with jurisdiction over property taxes and services for persons experiencing
homelessness.
(b) The report in paragraph (a) must be updated deleted text begin every two yearsdeleted text end new text begin in 2027 and 2029new text end and
the commissioner of revenue must provide copies of the updated reports to the chairs and
ranking minority members of the legislative committees with jurisdiction over property
taxes and services for persons experiencing homelessness by January 15 of the year the
report is due. Report requirements under this subdivision expire following the report which
includes the deleted text begin finaldeleted text end distribution deleted text begin preceding the expiration in subdivision 8deleted text end new text begin in 2028new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with aids payable in 2024.
new text end
Sec. 27. new text begin 2023 AID PENALTY FORGIVENESS; CITY OF STEWART.
new text end
new text begin
Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Stewart
must receive its aid payment for calendar year 2023 under Minnesota Statutes, section
477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 3,
provided that the state auditor certifies to the commissioner of revenue that it received the
annual financial reporting form for 2022 from the city by June 1, 2024. The commissioner
of revenue must make a payment of $87,501.50 to the city by June 30, 2024.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 28. new text begin PROPERTY TAX EXEMPTION; RED LAKE NATION COLLEGE.
new text end
new text begin
(a) Notwithstanding Minnesota Statutes, section 272.02, subdivision 38, paragraph (b),
and any other law to the contrary, property located in the city of Minneapolis acquired by
Red Lake Nation College Without Borders, LLC in either August 2021 or September 2021
is exempt from property taxes payable in 2022 and the portion of property taxes payable in
2021 due after the property was acquired. The city assessor must provide the property owner
with an application for exemption under this section and the property owner must file the
application with the city assessor by August 1, 2024. An amount necessary to make a
payment to the county for the property taxes attributable to the exemption is appropriated
from the general fund to the commissioner of revenue in fiscal year 2025.
new text end
new text begin
(b) By August 1, 2024, the auditor of the county in which the property is located must
certify to the commissioner of revenue the amount to be paid by the commissioner of revenue
to the county under paragraph (a). The commissioner of revenue must make this payment
by August 15, 2024. The county auditor must distribute the payment to the property owner
by August 31, 2024.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 29. new text begin APPROPRIATION; ADMINISTRATION OF ADVANCE HOMESTEAD
CREDIT FOR SENIORS.
new text end
new text begin
$158,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of revenue to administer the advance homestead credit for seniors in Minnesota Statutes,
sections 273.1389 and 290A.071. The base for this appropriation is $118,000 in fiscal year
2026 and $116,000 in fiscal year 2027.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2024.
new text end
Sec. 30. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2023 Supplement, section 477A.30, subdivision 8,
new text end
new text begin
is repealed.
new text end
ARTICLE 3
MINERALS TAXES
Section 1.
Minnesota Statutes 2022, section 123B.53, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the eligible debt service
revenue of a district is defined as follows:
(1) the amount needed to produce between five and six percent in excess of the amount
needed to meet when due the principal and interest payments on the obligations of the district
for eligible projects according to subdivision 2, excluding the amounts listed in paragraph
(b), minus
(2) the amount of debt service excess levy reduction for that school year calculated
according to the procedure established by the commissioner.
(b) The obligations in this paragraph are excluded from eligible debt service revenue:
(1) obligations under section 123B.61;
(2) the part of debt service principal and interest paid from the taconite environmental
protection fund or Douglas J. Johnson economic protection trust, excluding the portion of
taconite payments from the Iron Range school deleted text begin consolidation and cooperatively operated
schooldeleted text end new text begin and community developmentnew text end account under section 298.28, subdivision 7a;
(3) obligations for long-term facilities maintenance under section 123B.595;
(4) obligations under section 123B.62; and
(5) obligations equalized under section 123B.535.
(c) For purposes of this section, if a preexisting school district reorganized under sections
123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement of the
preexisting district's bonded indebtedness or capital loans, debt service equalization aid
must be computed separately for each of the preexisting districts.
(d) For purposes of this section, the adjusted net tax capacity determined according to
sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
generally exempted from ad valorem taxes under section 272.02, subdivision 64.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2022, section 273.135, subdivision 2, is amended to read:
Subd. 2.
Reduction amount.
The amount of the reduction authorized by subdivision 1
shall be:
(a) In the case of property located within a municipality as defined under section 273.134,
paragraph (a), 66 percent of the tax, provided that the reduction shall not exceed the
maximum amounts specified in paragraph (c).
(b) In the case of property located within the boundaries of a school district which
qualifies as a tax relief area under section 273.134, paragraph (b), but which is outside the
boundaries of a municipality which meets the qualifications prescribed in section 273.134,
paragraph (a), 57 percent of the tax, provided that the reduction shall not exceed the
maximum amounts specified in paragraph (c).
(c) The maximum reduction of the tax is deleted text begin $315.10deleted text end new text begin $515new text end on property described in paragraph
(a) and deleted text begin $289.80 on property described indeleted text end paragraph (b).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with property taxes payable
in 2025.
new text end
Sec. 3.
Minnesota Statutes 2022, section 275.065, is amended by adding a subdivision to
read:
new text begin Subd. 3c. new text end
new text begin Notice of proposed taxes; property subject to chapter 276A. new text end
new text begin
In the case of
property subject to the areawide tax under section 276A.06, subdivision 7, for both the
current year taxes and the proposed tax amounts, the net tax capacity portion of the taxes
shown for each taxing jurisdiction must be based on the property's total net tax capacity
multiplied by the jurisdiction's actual or proposed net tax capacity tax rate. In addition to
the tax amounts shown for each jurisdiction, the statement must include a line showing the
"fiscal disparities adjustment" equal to the total gross tax payable minus the sum of the tax
amounts shown for the individual taxing jurisdictions. The fiscal disparities adjustment may
be a negative number. If the fiscal disparities adjustment for either the current year taxes
or the proposed tax amount is a negative number, the percentage change must not be shown.
In all other respects the statement must fulfill the requirements of subdivision 3.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with proposed notices for
property taxes payable in 2025.
new text end
Sec. 4.
Minnesota Statutes 2022, section 276.04, is amended by adding a subdivision to
read:
new text begin Subd. 2a. new text end
new text begin Contents of tax statements; property subject to chapter 276A. new text end
new text begin
In the case
of property subject to the areawide tax under section 276A.06, subdivision 7, for both the
current year taxes and the previous year tax amounts, the net tax capacity portion of the tax
shown for each taxing jurisdiction must be based on the property's total net tax capacity
multiplied by the jurisdiction's net tax capacity tax rate. In addition to the tax amounts shown
for each jurisdiction, the statement must include a line showing the "fiscal disparities
adjustment" equal to the total gross tax payable minus the sum of the tax amounts shown
for the individual taxing jurisdictions for each year. The fiscal disparities adjustment may
be a negative number. In all other respects the statement must fulfill the requirements of
subdivision 2.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with proposed notices for
property taxes payable in 2025.
new text end
Sec. 5.
Minnesota Statutes 2022, section 276A.01, subdivision 17, is amended to read:
Subd. 17.
School fund allocation.
(a) "School fund allocation" means an amount up to
25 percent of the areawide levy certified by the commissioner of Iron Range resources and
rehabilitation, after consultation with the Iron Range Resources and Rehabilitation Board,
to be used for the purposes of the Iron Range school deleted text begin consolidation and cooperatively operated
schooldeleted text end new text begin and community developmentnew text end account under section 298.28, subdivision 7a.
(b) The allocation under paragraph (a) shall only be made after the commissioner of
Iron Range resources and rehabilitation, after consultation with the Iron Range Resources
and Rehabilitation Board, has certified by June 30 that the Iron Range school deleted text begin consolidation
and cooperatively operateddeleted text end new text begin and community developmentnew text end account has insufficient funds to
make payments as authorized under section 298.28, subdivision 7a.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 6.
Minnesota Statutes 2022, section 276A.06, subdivision 8, is amended to read:
Subd. 8.
Certification of values; payment.
The administrative auditor shall determine
for each county the difference between the total levy on distribution value pursuant to
subdivision 3, clause (1), including the school fund allocation within the county and the
total tax on contribution value pursuant to subdivision 7, within the county. On or before
May 16 of each year, the administrative auditor shall certify the differences so determined
and the county's portion of the school fund allocation to each county auditor. In addition,
the administrative auditor shall certify to those county auditors for whose county the total
tax on contribution value exceeds the total levy on distribution value the settlement the
county is to make to the other counties of the excess of the total tax on contribution value
over the total levy on distribution value in the county. On or before June 15 and November
15 of each year, each county treasurer in a county having a total tax on contribution value
in excess of the total levy on distribution value shall pay one-half of the excess to the other
counties in accordance with the administrative auditor's certification. On or before June 15
and November 15 of each year, each county treasurer shall pay to the administrative auditor
that county's share of the school fund allocation. On or before December 1 of each year,
the administrative auditor shall pay the school fund allocation to the commissioner of Iron
Range resources and rehabilitation for deposit in the Iron Range school deleted text begin consolidation and
cooperatively operateddeleted text end new text begin and community developmentnew text end account.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 7.
Minnesota Statutes 2023 Supplement, section 298.018, subdivision 1, is amended
to read:
Subdivision 1.
Within taconite assistance area.
(a) The proceeds of the tax paid under
sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the
taconite assistance area defined in section 273.1341, shall be allocated as follows:
(1) except as provided under paragraph (b), five percent to the city or town within which
the minerals or energy resources are mined or extracted, or within which the concentrate
was produced. If the mining and concentration, or different steps in either process, are
carried on in more than one taxing district, the commissioner shall apportion equitably the
proceeds among the cities and towns by attributing 50 percent of the proceeds of the tax to
the operation of mining or extraction, and the remainder to the concentrating plant and to
the processes of concentration, and with respect to each thereof giving due consideration
to the relative extent of the respective operations performed in each taxing district;
(2) ten percent to the taconite municipal aid account to be distributed as provided in
section 298.282, subdivisions 1 and 2, on the dates provided under this section;
(3) ten percent to the school district within which the minerals or energy resources are
mined or extracted, or within which the concentrate was produced. If the mining and
concentration, or different steps in either process, are carried on in more than one school
district, distribution among the school districts must be based on the apportionment formula
prescribed in clause (1);
(4) 20 percent to a group of school districts comprised of those school districts wherein
the mineral or energy resource was mined or extracted or in which there is a qualifying
municipality as defined by section 273.134, paragraph (b), in direct proportion to school
district indexes as follows: for each school district, its pupil units determined under section
126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted
net tax capacity per pupil unit for school districts receiving aid under this clause as calculated
pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution
to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that
portion of the distribution which its index bears to the sum of the indices for all school
districts that receive the distributions;
(5) ten percent to the county within which the minerals or energy resources are mined
or extracted, or within which the concentrate was produced. If the mining and concentration,
or different steps in either process, are carried on in more than one county, distribution
among the counties must be based on the apportionment formula prescribed in clause (1),
provided that any county receiving distributions under this clause shall pay one percent of
its proceeds to the Range Association of Municipalities and Schools;
(6) five percent to St. Louis County acting as the counties' fiscal agent to be distributed
as provided in sections 273.134 to 273.136;
(7) 20 percent to the commissioner of Iron Range resources and rehabilitation for the
purposes of section 298.22;
(8) three percent to the Douglas J. Johnson economic protection trust fund;
(9) seven percent to the taconite environmental protection fund; and
(10) ten percent to the commissioner of Iron Range resources and rehabilitation for
capital improvements to Giants Ridge Recreation Area.
(b) If the materials or energy resources are mined, extracted, or concentrated in School
District No. 2711, Mesabi East, then the amount under paragraph (a), clause (1), must instead
be distributed pursuant to this paragraph. The cities of Aurora, Babbitt, Ely, and Hoyt Lakes
must each receive 20 percent of the amount. The city of Biwabik and Embarrass Township
must each receive ten percent of the amount.
(c) For the first five years that tax paid under section 298.015, subdivisions 1 and 2, is
distributed under this subdivision, ten percent of the total proceeds distributed in each year
must first be distributed pursuant to this paragraph. The remaining 90 percent of the total
proceeds distributed in each of those years must be distributed as outlined in paragraph (a).
Of the amount available under this paragraph, the cities of Aurora, Babbitt, Ely, and Hoyt
Lakes must each receive 20 percent. Of the amount available under this paragraph, the city
of Biwabik and Embarrass Township must each receive ten percent.new text begin This paragraph applies
only to tax paid by a person engaged in the business of mining within the area described in
section 273.1341, clauses (1) and (2).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with the 2025 distribution.
new text end
Sec. 8.
Minnesota Statutes 2022, section 298.17, is amended to read:
298.17 OCCUPATION TAXES TO BE APPORTIONED.
(a) All occupation taxes paid by persons, copartnerships, companies, joint stock
companies, corporations, and associations, however or for whatever purpose organized,
engaged in the business of mining or producing iron ore or other ores, when collected shall
be apportioned and distributed in accordance with the Constitution of the state of Minnesota,
article X, section 3, in the manner following: 90 percent shall be deposited in the state
treasury and credited to the general fund of which four-ninths shall be used for the support
of elementary and secondary schools; and ten percent of the proceeds of the tax imposed
by this section shall be deposited in the state treasury and credited to the general fund for
the general support of the university.
(b) Of the money apportioned to the general fund by this section: (1) there is annually
appropriated and credited to the mining environmental and regulatory account in the special
revenue fund an amount equal to that which would have been generated by a 2-1/2 cent tax
imposed by section 298.24 on each taxable ton produced in the preceding calendar year.
Money in the mining environmental and regulatory account is appropriated annually to the
commissioner of natural resources to fund agency staff to work on environmental issues
and provide regulatory services for ferrous and nonferrous mining operations in this state.
Payment to the mining environmental and regulatory account shall be made by July 1
annually. The commissioner of natural resources shall execute an interagency agreement
with the Pollution Control Agency to assist with the provision of environmental regulatory
services such as monitoring and permitting required for ferrous and nonferrous mining
operations; (2) there is annually appropriated and credited to the Iron Range resources and
rehabilitation account in the special revenue fund an amount equal to that which would have
been generated by a 1.5 cent tax imposed by section 298.24 on each taxable ton produced
in the preceding calendar year, to be expended for the purposes of section 298.22; and (3)
there is annually appropriated and credited to the Iron Range resources and rehabilitation
account in the special revenue fund for transfer to the Iron Range school deleted text begin consolidation and
cooperatively operated schooldeleted text end new text begin and community developmentnew text end account under section 298.28,
subdivision 7a, an amount equal to that which would have been generated by a six cent tax
imposed by section 298.24 on each taxable ton produced in the preceding calendar year.
Payment to the Iron Range resources and rehabilitation account shall be made by May 15
annually.
(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i) to
provide environmental development grants to local governments located within any county
in region 3 as defined in governor's executive order number 60, issued on June 12, 1970,
which does not contain a municipality qualifying pursuant to section 273.134, paragraph
(b), or (ii) to provide economic development loans or grants to businesses located within
any such county, provided that the county board or an advisory group appointed by the
county board to provide recommendations on economic development shall make
recommendations to the commissioner of Iron Range resources and rehabilitation regarding
the loans. Payment to the Iron Range resources and rehabilitation account shall be made by
May 15 annually.
(d) Of the money allocated to Koochiching County, one-third must be paid to the
Koochiching County Economic Development Commission.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 9.
Minnesota Statutes 2023 Supplement, section 298.28, subdivision 7a, is amended
to read:
Subd. 7a.
Iron Range school deleted text begin consolidation and cooperatively operated schooldeleted text end new text begin and
community developmentnew text end account.
(a) The following amounts must be allocated to the
commissioner of Iron Range resources and rehabilitation to be deposited in the Iron Range
school deleted text begin consolidation and cooperatively operated schooldeleted text end new text begin and community developmentnew text end account
that is hereby created:
(1) for distributions beginning in 2015, ten cents per taxable ton of the tax imposed under
section 298.24;
(2) the amount as determined under section 298.17, paragraph (b), clause (3); and
(3) any other amount as provided by law.
(b) Expenditures from this account may be approved as ongoing annual expenditures
and shall be made only to provide disbursements to assist school districts with the payment
of bonds that were issued for qualified school projects, or for any other school disbursement
as approved by the commissioner of Iron Range resources and rehabilitation after consultation
with the Iron Range Resources and Rehabilitation Board. For purposes of this section,
"qualified school projects" means school projects within the taconite assistance area as
defined in section 273.1341, that were (1) approved, by referendum, after April 3, 2006;
and (2) approved by the commissioner of education pursuant to section 123B.71.
(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for
bonds issued under section 123A.482, subdivision 9, must be increased each year to offset
any reduction in debt service equalization aid that the school district qualifies for in that
year, under section 123B.53, subdivision 6, compared with the amount the school district
qualified for in fiscal year 2018.
(d) No expenditure under this section shall be made unless approved by the commissioner
of Iron Range resources and rehabilitation after consultation with the Iron Range Resources
and Rehabilitation Board.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 10.
Minnesota Statutes 2022, section 298.28, subdivision 8, is amended to read:
Subd. 8.
Range Association of Municipalities and Schools.
deleted text begin .30deleted text end new text begin 0.50new text end cent per taxable
ton shall be paid to the Range Association of Municipalities and Schools, for the purpose
of providing an areawide approach to problems which demand coordinated and cooperative
actions and which are common to those areas of northeast Minnesota affected by operations
involved in mining iron ore and taconite and producing concentrate therefrom, and for the
purpose of promoting the general welfare and economic development of the cities, towns,
and school districts within the Iron Range area of northeast Minnesota.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with the 2024 distribution.
new text end
Sec. 11.
Minnesota Statutes 2023 Supplement, section 298.28, subdivision 16, is amended
to read:
Subd. 16.
Transfer.
Of the amount annually distributed to the Douglas J. Johnson
Economic Protection Trust Fund under this section, deleted text begin $3,500,000deleted text end new text begin the following amountsnew text end shall
be transferred to the Iron Range school deleted text begin consolidation and cooperatively operated schooldeleted text end new text begin
and community developmentnew text end account under subdivision 7a. new text begin For distributions in 2024,
$6,250,000 must be transferred. For distributions in 2025 through 2029, $6,500,000 must
be transferred. For distributions in 2030 through 2034, $5,500,000 must be transferred. For
distributions in 2035 and 2036, $5,000,000 must be transferred. For distributions in 2037
and thereafter, $3,500,000 must be transferred. new text end Any remaining amount of the amount
annually distributed to the Douglas J. Johnson Economic Protection Trust Fund shall be
transferred to the Iron Range resources and rehabilitation account under subdivision 7. The
transfers under this subdivision must be made within ten days of the August payment.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with the 2024 distribution.
new text end
Sec. 12.
Minnesota Statutes 2022, section 298.282, subdivision 1, is amended to read:
Subdivision 1.
Distribution of taconite municipal aid account.
(a) The amount
deposited with the county as provided in section 298.28, subdivision 3, must be distributed
as provided by this section among: (1) the municipalities located within a taconite assistance
area under section 273.1341 that meet the criteria of section 273.1341, clause (1) or (2); (2)
a township that contains a state park consisting primarily of an underground iron ore mine;
(3) a city located within five miles of that state park; and (4) Breitung Township in St. Louis
County, each being referred to in this section as a qualifying municipality. The distribution
to Breitung Township under this subdivision shall be deleted text begin $15,000deleted text end new text begin $25,000new text end annually.
(b) The amount deposited in the state general fund as provided in section 298.018,
subdivision 1, must be distributed in the same manner as provided under paragraph (a),
except that subdivisions 3, 4, and 5 do not apply, and the distributions shall be made on the
dates provided under section 298.018, subdivision 1a.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with the 2024 distribution.
new text end
Sec. 13.
Minnesota Statutes 2022, section 298.292, subdivision 2, is amended to read:
Subd. 2.
Use of money.
(a) Money in the Douglas J. Johnson economic protection trust
fund may be used for the following purposes:
(1) to provide loans, loan guarantees, interest buy-downs and other forms of participation
with private sources of financing, but a loan to a private enterprise shall be for a principal
amount not to exceed one-half of the cost of the project for which financing is sought, and
the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight
percent or an interest rate three percentage points less than a full faith and credit obligation
of the United States government of comparable maturity, at the time that the loan is approved;
(2) to fund reserve accounts established to secure the payment when due of the principal
of and interest on bonds issued pursuant to section 298.2211new text begin , including bonds authorized
by the legislature to be repaid from the distributions under section 298.28, subdivision 7anew text end ;
(3) to pay in periodic payments or in a lump-sum payment any or all of the interest on
bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or
retrofitting heating facilities in connection with district heating systems or systems utilizing
alternative energy sources;
(4) to invest in a venture capital fund or enterprise that will provide capital to other
entities that are engaging in, or that will engage in, projects or programs that have the
purposes set forth in subdivision 1. No investments may be made in a venture capital fund
or enterprise unless at least two other unrelated investors make investments of at least
$500,000 in the venture capital fund or enterprise, and the investment by the Douglas J.
Johnson economic protection trust fund may not exceed the amount of the largest investment
by an unrelated investor in the venture capital fund or enterprise. For purposes of this
subdivision, an "unrelated investor" is a person or entity that is not related to the entity in
which the investment is made or to any individual who owns more than 40 percent of the
value of the entity, in any of the following relationships: spouse, parent, child, sibling,
employee, or owner of an interest in the entity that exceeds ten percent of the value of all
interests in it. For purposes of determining the limitations under this clause, the amount of
investments made by an investor other than the Douglas J. Johnson economic protection
trust fund is the sum of all investments made in the venture capital fund or enterprise during
the period beginning one year before the date of the investment by the Douglas J. Johnson
economic protection trust fund; and
(5) to purchase forest land in the taconite assistance area defined in section 273.1341 to
be held and managed as a public trust for the benefit of the area for the purposes authorized
in section 298.22, subdivision 5a. Property purchased under this section may be sold by the
commissioner, after consultation with the advisory board. The net proceeds must be deposited
in the trust fund for the purposes and uses of this section.
(b) Money from the trust fund shall be expended only in deleted text begin or for the benefit ofdeleted text end the taconite
assistance area defined in section 273.1341.
(c) Money devoted to the trust fund under this section shall not be expended, appropriated,
or transferred from the trust fund for any purpose except as provided in this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 14. new text begin IRON RANGE RESOURCES AND REHABILITATION COMMISSIONER;
BONDS AUTHORIZED IN 2024.
new text end
new text begin Subdivision 1. new text end
new text begin Issuance; purpose. new text end
new text begin
(a) Notwithstanding any provision of Minnesota
Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and
rehabilitation shall, by March 31, 2025, issue revenue bonds in a principal amount of up to
$49,000,000 plus an amount sufficient to pay costs of issuance in one or more series, and
thereafter may issue bonds to refund those bonds. The proceeds of the bonds must be used
to pay the costs of issuance and to make distributions pursuant this section. The commissioner
of Iron Range resources and rehabilitation must distribute these transferred funds as outlined
in this section. In order to receive a distribution, a recipient must submit to the commissioner
a plan of how the distribution will be spent and the commissioner must ensure that the plan
matches the intended use outlined in this section. The plan must be submitted in a form and
manner determined by the commissioner. The uses listed are not subject to review or
recommendation by the Iron Range Resources and Rehabilitation Board. By December 31,
2025, each recipient must report to the commissioner how the distribution received under
this section was spent. If a recipient's plan is submitted and approved, the commissioner
must distribute the funds for the uses outlined in subdivision 3. The bonds issued under this
section do not constitute public debt as that term is defined in article XI, section 4, of the
Minnesota Constitution, and as such are not subject to its provisions.
new text end
new text begin
(b) Funds under this section are available for four years from the date the bonds are
issued. Any unexpended funds after that date cancel to the taconite environmental fund
under Minnesota Statutes, section 298.28, subdivision 9b.
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
(a) Notwithstanding any restrictions on expenditures from the
account, there is annually appropriated from the distribution of the taconite production tax
revenues under Minnesota Statutes, section 298.28, subdivision 7a, an amount sufficient to
pay when due the principal and interest on the bonds issued pursuant to subdivision 1.
Payments must be made from the account annually after the distribution of the production
tax revenues has been made.
new text end
new text begin
(b) If in any year the amount available under paragraph (a) is insufficient to pay principal
and interest due on the bonds in that year, an additional amount is appropriated from the
Douglas J. Johnson economic protection trust fund to make up the deficiency.
new text end
new text begin
(c) The appropriation under this subdivision terminates upon payment or maturity of
the last of the bonds issued under this section.
new text end
new text begin Subd. 3. new text end
new text begin Grants. new text end
new text begin
(a) The commissioner of Iron Range resources and rehabilitation must
distribute funds available for distribution under subdivision 1 for the following uses:
new text end
new text begin
(1) $160,000 to the Grand Portage Band of Lake Superior Chippewa to construct a
playground;
new text end
new text begin
(2) $3,600,000 to the Mesabi Fit Coalition for the renovation, reconstruction, and
expansion of the former Mesabi Family YMCA in the city of Mountain Iron;
new text end
new text begin
(3) $950,000 to the Buyck Volunteer Fire Department for design, engineering, and
construction of a new fire and training hall and related equipment;
new text end
new text begin
(4) $750,000 to the Voyageur Trail Society for a joint maintenance facility with Voyageur
Country ATV in the city of Orr;
new text end
new text begin
(5) $2,250,000 to Cook County, of which $250,000 must be spent to preserve affordable
housing units for seniors in the city of Grand Marais and $2,000,000 must be used to
construct, furnish, and equip a solid waste transfer station in the county;
new text end
new text begin
(6) $1,000,000 to the Northland Learning Center for construction costs;
new text end
new text begin
(7) $2,720,000 to the city of Chisholm, of which $520,000 must be used for the renovation
of the Chisholm Ice Arena facility and parking and the remaining amount must be used for
the public works facility;
new text end
new text begin
(8) $1,000,000 to the city of Gilbert for the Gilbert Community Center;
new text end
new text begin
(9) $360,000 to the city of Biwabik for housing and infrastructure;
new text end
new text begin
(10) $3,000,000 to the city of Tower for water management infrastructure projects;
new text end
new text begin
(11) $3,000,000 to the city of Silver Bay to design, engineer, construct, and reconstruct
publicly owned infrastructure including sewers, water systems, utility extensions, street
construction, wastewater treatment, stormwater management systems, sidewalks, and
compliance with the Americans with Disabilities Act;
new text end
new text begin
(12) $2,100,000 to St. Louis County for the development of the Canyon Integrated Solid
Waste Management Campus;
new text end
new text begin
(13) $3,640,000 to the city of Eveleth to design, engineer, and construct public utilities
in its business park and construction of the Hat Trick Avenue slip ramp;
new text end
new text begin
(14) $700,000 to the city of Meadowlands for costs related to park improvements and
a community center;
new text end
new text begin
(15) $600,000 to School District No. 2142, St. Louis County, of which $400,000 must
be used for septic system upgrades at South Ridge School and $200,000 must be used for
cafeteria renovations at Northeast Range School in Babbitt and Tower Elementary School
in Tower;
new text end
new text begin
(16) $250,000 to the city of Two Harbors for band stand repairs and Odegard Park and
Trail restoration;
new text end
new text begin
(17) $850,000 to the Central Iron Range Sanitary Sewer District for infrastructure
projects;
new text end
new text begin
(18) $5,070,000 to the Minnesota Discovery Center to design, construct, renovate,
furnish, and repair facilities, including HVAC upgrades, demolition, and compliance with
the Americans with Disabilities Act, at the Minnesota Discovery Center in the city of
Chisholm, and for historical research funding;
new text end
new text begin
(19) $5,200,000 to the commissioner of Iron Range resources and rehabilitation for the
design, engineering, and upgrades or replacement of chair lifts and for the design,
engineering, demolition, and construction of a nordic and welcome center at the Giants
Ridge Recreation Area;
new text end
new text begin
(20) $250,000 to Independent School District No. 696, Ely, for baseball field renovation;
new text end
new text begin
(21) $500,000 to the city of Mountain Iron for the Outdoor Recreation Center;
new text end
new text begin
(22) $200,000 to Cook County Higher Education Board for costs to bring commercial
drivers' licenses and trades training to the region along with educational training and academic
support to remote populations;
new text end
new text begin
(23) $200,000 to Save Our Ship, Inc., for construction costs at Knife River;
new text end
new text begin
(24) $3,000,000 to Hibbing Public Utilities for water infrastructure projects;
new text end
new text begin
(25) $400,000 to Veterans On The Lake for demolition of existing structures and the
building of a triplex that is compliant with the Americans with Disabilities Act;
new text end
new text begin
(26) $350,000 to the city of Eveleth for the Hippodrome renovation;
new text end
new text begin
(27) $500,000 to the Great Expectations School Foundation in Cook County for school
facilities construction;
new text end
new text begin
(28) $225,000 to the Minnesota Forest Zone Trappers Association to plan, engineer,
purchase land, and develop the Sportsperson Training and Development Center;
new text end
new text begin
(29) $200,000 to the Sturgeon Chain Lake Association to update the engineering and
hydrology study of the lakes, for regulatory and community outreach, and for preparing
recommendations to the commissioner of natural resources related to bank stabilization and
maintenance;
new text end
new text begin
(30) $300,000 to the Northern Lights Music Festival to support programs, of this amount
$100,000 is available each year in calendar years 2025, 2026, and 2027;
new text end
new text begin
(31) $250,000 to Cherry Township for recreational facilities upgrades and lights;
new text end
new text begin
(32) $350,000 to the East Range Developmental Achievement Center for building
renovations;
new text end
new text begin
(33) $500,000 to the Northland Foundation for grants or loans to (i) businesses or resorts
that were economically damaged by floods that occurred in 2022 or 2023 and which are
eligible under article 5 of the Canadian border counties economic relief program, or (ii)
outfitters in the border region who experienced either more than a 50 percent reduction in
Boundary Waters Canoe Area Wilderness permits obtained by their customers between
2019 and 2021, or a 50 percent reduction between 2019 and 2021 in trips across the fee-based
mechanical portages into the Boundary Waters Canoe Area Wilderness or Quetico Provincial
Park. Businesses may be awarded a maximum grant under this clause of up to $50,000,
must be located within the taconite assistance area, as defined under Minnesota Statutes,
section 273.1341, and must not have received a grant under the Canadian border counties
economic relief program. The Northland Foundation may retain up to four percent of the
amount under this clause for administration;
new text end
new text begin
(34) $3,300,000 to the city of Virginia for a grant to be used for: (i) modernization,
renovation, and expansion of the Virginia Hospital emergency room complex to 12
emergency rooms; (ii) construction of an emergency behavior health suite for adults and
children; and (iii) security and safety upgrades. The grant must be transferred by the city
within 30 days of receipt;
new text end
new text begin
(35) $100,000 to Crystal Bay Township for a septic project at the Clair Nelson
Community Center;
new text end
new text begin
(36) $25,000 to the Northwoods Friends of the Arts in the city of Cook for facility
upgrades and programs;
new text end
new text begin
(37) $50,000 to the Bois Forte Band of Chippewa for food shelf expenses;
new text end
new text begin
(38) $100,000 to the Lake Vermilion Cultural Center to improve and renovate the facility
and its displays in Tower;
new text end
new text begin
(39) $50,000 to the Lyric Center for the Arts in Virginia for repairs and renovation;
new text end
new text begin
(40) $50,000 to the Pioneer Mine historical site for maintenance and displays in Ely;
new text end
new text begin
(41) $150,000 to the Lake Superior School District to support an emergency preparedness
career introduction program;
new text end
new text begin
(42) $50,000 to the Essentia Health Virginia Regional Foundation for the development
of a substance use disorder community education and awareness program;
new text end
new text begin
(43) $200,000 to the city of Babbitt for ADA compliance and renovations to the city's
parks; and
new text end
new text begin
(44) $500,000 for grants of $25,000 distributed pursuant to paragraph (b).
new text end
new text begin
(b) Of the amount under paragraph (a), clause (44), grants of $25,000 to be used for trail
grooming costs or equipment must be made available to the following entities:
new text end
new text begin
(1) Alborn Dirt Devils ATV Club;
new text end
new text begin
(2) Wild Country ATV Club;
new text end
new text begin
(3) Ely Igloo Snowmobile Club;
new text end
new text begin
(4) CC Riders Snowmobile Club;
new text end
new text begin
(5) PathBlazers Snowmobile Club;
new text end
new text begin
(6) Cook Timberwolves Snowmobile Club;
new text end
new text begin
(7) Crane Lake Voyageurs Club;
new text end
new text begin
(8) Pequaywan Area Trail Blazers Snowmobile Club;
new text end
new text begin
(9) Eveleth Trail Hawks Snowmobile Club;
new text end
new text begin
(10) Ranger Snowmobile/ATV Club;
new text end
new text begin
(11) Silver Trail Riders Snowmobile and ATV Club;
new text end
new text begin
(12) Voyageur Snowmobile Club;
new text end
new text begin
(13) Mesabi Sno Voyageurs;
new text end
new text begin
(14) Quad Cities ATV Club;
new text end
new text begin
(15) Prospector ATV Club;
new text end
new text begin
(16) Northern Traxx ATV Club;
new text end
new text begin
(17) Finland Snowmobile and ATV Club;
new text end
new text begin
(18) Babbitt ATV and Snowmobile Club;
new text end
new text begin
(19) Cook County ATV Club; and
new text end
new text begin
(20) Vermilion Penguins Snowmobile Club.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies beginning with the 2024 distribution under Minnesota Statutes, section 298.28.
new text end
Sec. 15. new text begin IRON RANGE RESOURCES AND REHABILITATION COMMISSIONER;
BONDS AUTHORIZED IN 2025.
new text end
new text begin Subdivision 1. new text end
new text begin Issuance; purpose. new text end
new text begin
(a) Notwithstanding any provision of Minnesota
Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and
rehabilitation shall, in 2025, issue revenue bonds in a principal amount of up to $31,000,000
plus an amount sufficient to pay costs of issuance in one or more series, and thereafter may
issue bonds to refund those bonds. The proceeds of the bonds must be used to pay the costs
of issuance and to make distributions pursuant to this section. The commissioner of Iron
Range resources and rehabilitation must distribute these transferred funds as outlined in
this section. In order to receive a distribution, a recipient must submit to the commissioner
a plan of how the distribution will be spent and the commissioner must ensure that the plan
matches the intended use outlined in this section. The plan must be submitted in a form and
manner determined by the commissioner. The uses listed are not subject to review or
recommendation by the Iron Range Resources and Rehabilitation Board. By December 31,
2026, each recipient must report to the commissioner how the distribution received under
this section was spent. If a recipient's plan is submitted and approved, the commissioner
must distribute the funds for the uses outlined in subdivision 3. The bonds issued under this
section do not constitute public debt as that term is defined in article XI, section 4, of the
Minnesota Constitution, and as such are not subject to its provisions.
new text end
new text begin
(b) Funds under this section are available for four years from the date the bonds are
issued. Any unexpended funds after that date cancel to the taconite environmental fund
under Minnesota Statutes, section 298.28, subdivision 9b.
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
(a) Notwithstanding any restrictions on expenditures from the
account, there is annually appropriated from the distribution of the taconite production tax
revenues under Minnesota Statutes, section 298.28, subdivision 7a, an amount sufficient to
pay when due the principal and interest on the bonds issued pursuant to subdivision 1.
Payments must be made from the account annually after the distribution of the production
tax revenues has been made.
new text end
new text begin
(b) If in any year the amount available under paragraph (a) is insufficient to pay principal
and interest due on the bonds in that year, an additional amount is appropriated from the
Douglas J. Johnson economic protection trust fund to make up the deficiency.
new text end
new text begin
(c) The appropriation under this subdivision terminates upon payment or maturity of
the last of the bonds issued under this section.
new text end
new text begin Subd. 3. new text end
new text begin Grants. new text end
new text begin
The commissioner of Iron Range resources and rehabilitation must
distribute funds available for distribution under subdivision 1 for the following uses:
new text end
new text begin
(1) $5,000,000 to the Minnesota Discovery Center to design, construct, renovate, furnish,
and repair facilities, including HVAC upgrades, demolition, and compliance with the
Americans with Disabilities Act, at the Minnesota Discovery Center in the city of Chisholm,
and for historical research funding;
new text end
new text begin
(2) $7,800,000 to the commissioner of Iron Range resources and rehabilitation for the
design, engineering, and upgrades or replacement of chair lifts and for the design,
engineering, demolition, and construction of a nordic and welcome center at the Giants
Ridge Recreation Area;
new text end
new text begin
(3) $350,000 to the Central Iron Range Sanitary Sewer District for infrastructure projects;
new text end
new text begin
(4) $1,500,000 to the city of Babbitt for renovations to the ice arena;
new text end
new text begin
(5) $1,200,000 to Independent School District No. 2909, Rock Ridge, for demolition of
the James Madison Elementary School in Virginia;
new text end
new text begin
(6) $500,000 to the city of Buhl for infrastructure projects;
new text end
new text begin
(7) $500,000 to St. Louis and Lake Counties Regional Railroad Authority to design,
engineer, acquire right-of-way, and construct the Mesabi Trail Spur from Aurora to Hoyt
Lakes;
new text end
new text begin
(8) $2,000,000 to the city of Mountain Iron for infrastructure projects including but not
limited to Enterprise Drive North East infrastructure development, water main and other
infrastructure in the city, waste water plant improvements to comply with new permits,
supervisory control and data acquisition on lift stations, and recreation projects;
new text end
new text begin
(9) $3,000,000 to the city of Silver Bay to design, engineer, construct, and reconstruct
publicly owned infrastructure including sewers, water systems, utility extensions, street
construction, wastewater treatment, stormwater management systems, sidewalks, and
compliance with the Americans with Disabilities Act;
new text end
new text begin
(10) $5,000,000 to Independent School District No. 696, Ely, for planning, design,
engineering, demolition, and construction related to the district's athletic complex;
new text end
new text begin
(11) $1,080,000 to the Northland Learning Center to construct the Alternative Learning
Center on the campus in the city of Mountain Iron;
new text end
new text begin
(12) $1,000,000 for the city of Biwabik for a public safety facility;
new text end
new text begin
(13) $1,570,000 to Hibbing Public Utilities for water infrastructure projects; and
new text end
new text begin
(14) $500,000 to St. Louis County for the demolition of the public school in Hoyt Lakes.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies beginning with the 2025 distribution under Minnesota Statutes, section 298.28.
new text end
Sec. 16. new text begin TRANSFER 2024 DISTRIBUTION ONLY; TACONITE ECONOMIC
DEVELOPMENT FUND.
new text end
new text begin
Of the funds distributed to the taconite economic development fund under Minnesota
Statutes, section 298.28, subdivision 9a, for the 2024 distribution only, an amount equal to
$300,000 shall be transferred from the taconite economic development fund to the city of
Chisholm for the Senator David Tomassoni Bridge of Peace. The transfer must be made
within ten days of the August 2024 payment. If less than $300,000 is distributed to the
taconite economic development fund in 2024, distributions to the fund in future years must
be transferred to the city of Chisholm, pursuant to this paragraph, until the total amount
transferred equals $300,000.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 4
SALES AND USE TAXES, GROSS RECEIPTS TAXES, AND EXCISE TAXES
Section 1.
Minnesota Statutes 2022, section 295.53, subdivision 4a, is amended to read:
Subd. 4a.
Credit for research.
(a) In addition to the exemptions allowed under
subdivision 1, a hospital or health care provider may claim an annual credit against the total
amount of tax, if any, the hospital or health care provider owes for that calendar year under
sections 295.50 to 295.57. The credit shall equal deleted text begin 2.5deleted text end new text begin 0.5new text end percent of revenues for patient
services used to fund expenditures for qualifying research conducted by an allowable research
program. The amount of the credit shall not exceed the tax liability of the hospital or health
care provider under sections 295.50 to 295.57.
(b) For purposes of this subdivision, the following requirements apply:
(1) expenditures must be for program costs of qualifying research conducted by an
allowable research program;
(2) an allowable research program must be a formal program of medical and health care
research conducted by an entity which is exempt under section 501(c)(3) of the Internal
Revenue Code as defined in section 289A.02, subdivision 7, or is owned and operated under
authority of a governmental unit;
(3) qualifying research must:
(A) be approved in writing by the governing body of the hospital or health care provider
which is taking the deduction under this subdivision;
(B) have as its purpose the development of new knowledge in basic or applied science
relating to the diagnosis and treatment of conditions affecting the human body;
(C) be subject to review by individuals with expertise in the subject matter of the proposed
study but who have no financial interest in the proposed study and are not involved in the
conduct of the proposed study; and
(D) be subject to review and supervision by an institutional review board operating in
conformity with federal regulations if the research involves human subjects or an institutional
animal care and use committee operating in conformity with federal regulations if the
research involves animal subjects. Research expenses are not exempt if the study is a routine
evaluation of health care methods or products used in a particular setting conducted for the
purpose of making a management decision. Costs of clinical research activities paid directly
for the benefit of an individual patient are excluded from this exemption. Basic research in
fields including biochemistry, molecular biology, and physiology are also included if such
programs are subject to a peer review process.
(c) No credit shall be allowed under this subdivision for any revenue received by the
hospital or health care provider in the form of a grant, gift, or otherwise, whether from a
government or nongovernment source, on which the tax liability under section 295.52 is
not imposed.
(d) The taxpayer shall apply for the credit under this section on the annual return under
section 295.55, subdivision 5.
deleted text begin
(e) Beginning September 1, 2001, if the actual or estimated amount paid under this
section for the calendar year exceeds $2,500,000, the commissioner of management and
budget shall determine the rate of the research credit for the following calendar year to the
nearest one-half percent so that refunds paid under this section will most closely equal
$2,500,000. The commissioner of management and budget shall publish in the State Register
by October 1 of each year the rate of the credit for the following calendar year. A
determination under this section is not subject to the rulemaking provisions of chapter 14.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
new text begin
[295.85] AMUSEMENT DEVICE GROSS RECEIPTS TAX.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Amusement device" means any electronic or mechanical machine or device that is
activated and operated by providing payment for use to provide entertainment or amusement,
including but not limited to bowling alleys, fortune-telling machines, cranes, foosball tables,
pool tables, video games, pinball machines, batting cages, rides, photo or video booths,
shuffleboard tables, air hockey tables, arcade games, shooting gallery games, dart boards,
and jukeboxes. An amusement device does not include vending machines, lottery devices,
or gaming devices as described in chapters 297E and 349.
new text end
new text begin
(c) "Commissioner" means the commissioner of revenue.
new text end
new text begin
(d) "Gross receipts" means the total amount received in money or by barter or exchange
for sales derived from the making available of amusement devices for play as measured by
the sales price.
new text end
new text begin
(e) "Providing payment" means activating an amusement device by either:
new text end
new text begin
(1) inserting a coin, paper currency, or token, swiping a card, entering a code, or using
an electronic payment on the device; or
new text end
new text begin
(2) giving such payment to a person who activates for play the amusement device.
new text end
new text begin Subd. 2. new text end
new text begin Tax imposed. new text end
new text begin
A tax equal to 6.875 percent of gross receipts from making
available any amusement device for play is imposed on the owners of each device operated
in Minnesota. The tax imposed by this section is in lieu of the taxes imposed by chapter
297A.
new text end
new text begin Subd. 3. new text end
new text begin Administration. new text end
new text begin
Unless specifically provided otherwise, the audit, assessment,
refund, penalty, interest, enforcement, collection remedies, appeal, and administrative
provisions of chapters 270C and 289A that are applicable to taxes imposed under chapter
297A apply to the tax imposed under this section.
new text end
new text begin Subd. 4. new text end
new text begin Returns; payment of tax. new text end
new text begin
(a) An owner of an amusement device must report
the tax on a return prescribed by the commissioner and must remit the tax in a form and
manner prescribed by the commissioner. The return and the tax must be filed and paid using
the filing cycle and due dates provided for taxes imposed under section 289A.20, subdivision
4, and chapter 297A.
new text end
new text begin
(b) Interest must be paid on an overpayment refunded or credited to the taxpayer from
the date of payment of the tax until the date the refund is paid or credited. For purposes of
this subdivision, the date of payment is the due date of the return or the date of actual
payment of the tax, whichever is later.
new text end
new text begin Subd. 5. new text end
new text begin Deposit of revenues. new text end
new text begin
The commissioner must deposit the revenues, including
penalties and interest, derived from the tax imposed by this section as follows:
new text end
new text begin
(1) The revenue derived from the portion of the tax equal to 6.5 percent must be deposited
into the general fund; and
new text end
new text begin
(2) The revenue derived from the portion of the tax equal to 0.375 percent must be
deposited pursuant to Minnesota Constitution, article XI, section 15.
new text end
new text begin Subd. 6. new text end
new text begin Personal debt. new text end
new text begin
The tax imposed by this section, and interest and penalties
imposed with respect to the tax, are a personal debt of the person required to file a return
from the time that the liability for the tax arises, irrespective of when the time for payment
of the liability occurs. The debt must, in the case of the executor or administrator of the
estate of a decedent and in the case of a fiduciary, be that of the person in the person's official
or fiduciary capacity only, unless the person has voluntarily distributed the assets held in
that capacity without reserving sufficient assets to pay the tax, interest, and penalties, in
which event the person is personally liable for any deficiency.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective October 1, 2024.
new text end
Sec. 3.
Minnesota Statutes 2023 Supplement, section 297A.61, subdivision 3, is amended
to read:
Subd. 3.
Sale and purchase.
(a) "Sale" and "purchase" includedeleted text begin ,deleted text end but are not limited todeleted text begin ,deleted text end
each of the transactions listed in this subdivision. In applying the provisions of this chapter,
the terms "tangible personal property" and "retail sale" include the taxable services listed
in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision of these taxable
services, unless specifically provided otherwise. Services performed by an employee for
an employer are not taxable. Services performed by a partnership or association for another
partnership or association are not taxable if one of the entities owns or controls more than
80 percent of the voting power of the equity interest in the other entity. Services performed
between members of an affiliated group of corporations are not taxable. For purposes of
the preceding sentence, "affiliated group of corporations" means those entities that would
be classified as members of an affiliated group as defined under United States Code, title
26, section 1504, disregarding the exclusions in section 1504(b).
(b) Sale and purchase include:
(1) any transfer of title or possession, or both, of tangible personal property, whether
absolutely or conditionally, for a consideration in money or by exchange or barter; and
(2) the leasing of or the granting of a license to use or consume, for a consideration in
money or by exchange or barter, tangible personal property, other than a manufactured
home used for residential purposes for a continuous period of 30 days or more.
(c) Sale and purchase include the production, fabrication, printing, or processing of
tangible personal property for a consideration for consumers who furnish either directly or
indirectly the materials used in the production, fabrication, printing, or processing.
(d) Sale and purchase include the preparing for a consideration of food. Notwithstanding
section 297A.67, subdivision 2, taxable food includes, but is not limited to, the following:
(1) prepared food sold by the retailer;
(2) soft drinks;
(3) candy; and
(4) dietary supplements.
(e) A sale and a purchase includes the furnishing for a consideration of electricity, gas,
water, or steam for use or consumption within this state.
(f) A sale and a purchase includes the transfer for a consideration of prewritten computer
software whether delivered electronically, by load and leave, or otherwise.
(g) A sale and a purchase includes the furnishing for a consideration of the following
services:
(1) the privilege of admission to places of amusement, recreational areas, or athletic
events, and the making available of deleted text begin amusement devices,deleted text end tanning facilities, reducing salons,
steam baths, health clubs, and spas or athletic facilities;
(2) lodging and related services by a hotel, rooming house, resort, campground, motel,
or trailer camp, including furnishing the guest of the facility with access to telecommunication
services, and the granting of any similar license to use real property in a specific facility,
other than the renting or leasing of it for a continuous period of 30 days or more under an
enforceable written agreement that may not be terminated without prior notice and including
accommodations intermediary services provided in connection with other services provided
under this clause;
(3) nonresidential parking services, whether on a contractual, hourly, or other periodic
basis, except for parking at a meter;
(4) the granting of membership in a club, association, or other organization if:
(i) the club, association, or other organization makes available for the use of its members
sports and athletic facilities, without regard to whether a separate charge is assessed for use
of the facilities; and
(ii) use of the sports and athletic facility is not made available to the general public on
the same basis as it is made available to members.
Granting of membership means both onetime initiation fees and periodic membership dues.
Sports and athletic facilities include golf courses; tennis, racquetball, handball, and squash
courts; basketball and volleyball facilities; running tracks; exercise equipment; swimming
pools; and other similar athletic or sports facilities;
(5) delivery of aggregate materials by a third party, excluding delivery of aggregate
material used in road construction; and delivery of concrete block by a third party if the
delivery would be subject to the sales tax if provided by the seller of the concrete block.
For purposes of this clause, "road construction" means construction of:
(i) public roads;
(ii) cartways; and
(iii) private roads in townships located outside of the seven-county metropolitan area
up to the point of the emergency response location sign; and
(6) services as provided in this clause:
(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
include services provided by coin operated facilities operated by the customer;
(ii) motor vehicle washing, waxing, and cleaning services, including services provided
by coin operated facilities operated by the customer, and rustproofing, undercoating, and
towing of motor vehicles;
(iii) building and residential cleaning, maintenance, and disinfecting services and pest
control and exterminating services;
(iv) detective, security, burglar, fire alarm, and armored car services; but not including
services performed within the jurisdiction they serve by off-duty licensed peace officers as
defined in section 626.84, subdivision 1, or services provided by a nonprofit organization
or any organization at the direction of a county for monitoring and electronic surveillance
of persons placed on in-home detention pursuant to court order or under the direction of the
Minnesota Department of Corrections;
(v) pet grooming services;
(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor plant
care; tree, bush, shrub, and stump removal, except when performed as part of a land clearing
contract as defined in section 297A.68, subdivision 40; and tree trimming for public utility
lines. Services performed under a construction contract for the installation of shrubbery,
plants, sod, trees, bushes, and similar items are not taxable;
(vii) massages, except when provided by a licensed health care facility or professional
or upon written referral from a licensed health care facility or professional for treatment of
illness, injury, or disease; and
(viii) the furnishing of lodging, board, and care services for animals in kennels and other
similar arrangements, but excluding veterinary and horse boarding services.
(h) A sale and a purchase includes the furnishing for a consideration of tangible personal
property or taxable services by the United States or any of its agencies or instrumentalities,
or the state of Minnesota, its agencies, instrumentalities, or political subdivisions.
(i) A sale and a purchase includes the furnishing for a consideration of
telecommunications services, ancillary services associated with telecommunication services,
and pay television services. Telecommunication services include, but are not limited to, the
following services, as defined in section 297A.669: air-to-ground radiotelephone service,
mobile telecommunication service, postpaid calling service, prepaid calling service, prepaid
wireless calling service, and private communication services. The services in this paragraph
are taxed to the extent allowed under federal law.
(j) A sale and a purchase includes the furnishing for a consideration of installation if the
installation charges would be subject to the sales tax if the installation were provided by
the seller of the item being installed.
(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer to a
customer when (1) the vehicle is rented by the customer for a consideration, or (2) the motor
vehicle dealer is reimbursed pursuant to a service contract as defined in section 59B.02,
subdivision 11.
(l) A sale and a purchase includes furnishing for a consideration of specified digital
products or other digital products or granting the right for a consideration to use specified
digital products or other digital products on a temporary or permanent basis and regardless
of whether the purchaser is required to make continued payments for such right. Wherever
the term "tangible personal property" is used in this chapter, other than in subdivisions 10
and 38, the provisions also apply to specified digital products, or other digital products,
unless specifically provided otherwise or the context indicates otherwise.
(m) The sale of the privilege of admission under section 297A.61, subdivision 3,
paragraph (g), clause (1), to a place of amusement, recreational area, or athletic event
includes all charges included in the privilege of admission's sales price, without deduction
for amenities that may be provided, unless the amenities are separately stated and the
purchaser of the privilege of admission is entitled to add or decline the amenities, and the
amenities are not otherwise taxable.
(n) A sale and purchase includes the transfer for consideration of a taxable cannabis
product as defined in section 295.81, subdivision 1, paragraph (r).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective October 1, 2024.
new text end
Sec. 4.
Minnesota Statutes 2022, section 297A.68, subdivision 3a, is amended to read:
Subd. 3a.
Coin-operated entertainment and amusement devices.
Coin-operated
entertainment and amusement devices including, but not limited to, fortune-telling machines,
cranes, foosball and pool tables, video and pinball games, batting cages, rides, photo or
video booths, and jukeboxes are exempt when purchased by retailers selling admission to
places of amusement and making available amusement devices as provided in section
deleted text begin 297A.61, subdivision 3, paragraph (g), clause (1)deleted text end new text begin 295.85new text end . Coin-operated entertainment and
amusement devices do not include vending machines, lottery devices, or gaming devices
as described in chapters 297E and 349.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective October 1, 2024.
new text end
Sec. 5.
Minnesota Statutes 2022, section 297A.68, subdivision 45, is amended to read:
Subd. 45.
Jukebox music.
The purchase of music, either as a digital audio work or in
tangible form such as a record or compact disc, by operators that provide the service of
making available jukeboxes as amusement devices, as provided in section deleted text begin 297A.61,
subdivision 3, paragraph (g), clause (1)deleted text end new text begin 295.85new text end , is exempt if the music is used exclusively
for the jukebox.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective October 1, 2024.
new text end
Sec. 6.
Minnesota Statutes 2022, section 609.902, subdivision 4, is amended to read:
Subd. 4.
Criminal act.
"Criminal act" means conduct constituting, or a conspiracy or
attempt to commit, a felony violation of chapter 152, or a felony violation of section deleted text begin 297D.09;deleted text end
299F.79; 299F.80; 299F.82; 609.185; 609.19; 609.195; 609.20; 609.205; 609.221; 609.222;
609.223; 609.2231; 609.228; 609.235; 609.245; 609.25; 609.27; 609.322; 609.342; 609.343;
609.344; 609.345; 609.42; 609.48; 609.485; 609.495; 609.496; 609.497; 609.498; 609.52,
subdivision 2, if the offense is punishable under subdivision 3, clause (1), if the property is
a firearm, clause (3)(b), or clause (3)(d)(v); section 609.52, subdivision 2, paragraph (a),
clause (1) or (4); 609.527, if the crime is punishable under subdivision 3, clause (4); 609.528,
if the crime is punishable under subdivision 3, clause (4); 609.53; 609.561; 609.562; 609.582,
subdivision 1 or 2; 609.668, subdivision 6, paragraph (a); 609.67; 609.687; 609.713; 609.86;
609.894, subdivision 3 or 4; 609.895; 624.713; 624.7191; or 626A.02, subdivision 1, if the
offense is punishable under section 626A.02, subdivision 4, paragraph (a). "Criminal act"
also includes conduct constituting, or a conspiracy or attempt to commit, a felony violation
of section 609.52, subdivision 2, clause (3), (4), (15), or (16), if the violation involves an
insurance company as defined in section 60A.02, subdivision 4, a nonprofit health service
plan corporation regulated under chapter 62C, a health maintenance organization regulated
under chapter 62D, or a fraternal benefit society regulated under chapter 64B.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2024.
new text end
Sec. 7. new text begin CITY OF WOODBURY; SALES TAX EXEMPTION FOR CONSTRUCTION
MATERIALS.
new text end
new text begin Subdivision 1. new text end
new text begin Exemption; refund. new text end
new text begin
(a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of a water treatment facility, including water pipeline infrastructure and
associated improvements, funded by the city of Woodbury are exempt from sales and use
tax under Minnesota Statutes, chapter 297A, provided that the materials, supplies, and
equipment are purchased after January 31, 2024, and before July 1, 2025.
new text end
new text begin
(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2024. No refunds may be issued after June
30, 2025.
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
The amount required to pay the refunds under subdivision 1
is appropriated from the general fund to the commissioner of revenue.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for sales and purchases
made after January 31, 2024, and before July 1, 2025.
new text end
Sec. 8. new text begin REPEALER.
new text end
new text begin
(a)
new text end
new text begin
Minnesota Statutes 2022, sections 13.4967, subdivision 5; 297D.02; 297D.03;
297D.05; 297D.09, subdivisions 1 and 2; 297D.12; and 297D.13,
new text end
new text begin
are repealed.
new text end
new text begin
(b)
new text end
new text begin
Minnesota Statutes 2023 Supplement, sections 297D.01; 297D.04; 297D.06; 297D.07;
297D.08; 297D.085; 297D.09, subdivision 1a; 297D.10; and 297D.11,
new text end
new text begin
are repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2024.
new text end
ARTICLE 5
TAX INCREMENT FINANCING
Section 1.
Laws 2010, chapter 389, article 7, section 22, as amended by Laws 2011, chapter
112, article 11, section 16, is amended to read:
Sec. 22. CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT;
SPECIAL RULES.
(a) If the city of Ramsey or an authority of the city elects upon the adoption of a tax
increment financing plan for a district, the rules under this section apply to a redevelopment
tax increment financing district established by the city or an authority of the city. The
redevelopment tax increment district includes parcels within the area bounded on the east
by Ramsey Boulevard, on the north by Bunker Lake Boulevard as extended west to Llama
Street, on the west by Llama Street, and on the south by a line running parallel to and 600
feet south of the southerly right-of-way for U.S. Highway 10, but including Parcels
28-32-25-43-0007 and 28-32-25-34-0002 in their entirety, and excluding the Anoka County
Regional Park property in its entirety. A parcel within this area that is included in a tax
increment financing district that was certified before the date of enactment of this act may
be included in the district created under this act if the initial district is decertified.
(b) The requirements for qualifying a redevelopment tax increment district under
Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcels located
within the district.
(c) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
Eligible expenditures within the district include but are not limited to (1) the city's share of
the costs necessary to provide for the construction of the Northstar Transit Station and
related infrastructure, including structured parking, a pedestrian overpass, and roadway
improvements, (2) the cost of land acquired by the city or the housing and redevelopment
authority in and for the city of Ramsey within the district prior to the establishment of the
district, and (3) the cost of public improvements installed within the tax increment financing
district prior to the establishment of the district.
(d) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
must be undertaken within a five-year period from the date of certification of a tax increment
financing district, is considered to be met for the district if the activities were undertaken
within ten years from the date of certification of the district.
(e) Except for administrative expenses, the in-district percentage for purposes of the
restriction on pooling under Minnesota Statutes, section 469.1763, subdivision 2, for this
district is 100 percent.
(f) The requirement of Minnesota Statutes, section 469.177, subdivision 4, does not
apply to Parcels 28-32-25-42-0021 and 28-32-25-41-0014, where development occurred
after enactment of Laws 2010, chapter 389, article 7, section 22, and prior to adoption of
the tax increment financing plan for the district.
new text begin
(g) The requirement of Minnesota Statutes, section 469.178, subdivision 7, paragraph
(b), is considered to be met for the district if the city adopts interfund loan resolutions
reflecting the terms and conditions required by Minnesota Statutes, section 469.178,
subdivision 7, paragraph (d), by December 31, 2024.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the city of Ramsey and its
chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and
3.
new text end
Sec. 2.
Laws 2014, chapter 308, article 6, section 9, as amended by Laws 2017, First
Special Session chapter 1, article 6, section 12, is amended to read:
Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.
Subdivision 1.
Definitions.
(a) For the purposes of this section, the following terms have
the meanings given them.
(b) "City" means the city of Maple Grove.
(c) "Project area" means all or a portion of the area in the city commencing at a point
130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section
23, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way
line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock
Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23,
thence south along said west line a distance of 1,200 feet; thence easterly to the east line of
Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees
East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance
of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st Avenue
North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter
of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west
line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55
degrees West to the south line of the Northwest Quarter of the Northwest Quarter of Section
24; thence West along said south line to the east right-of-way line of Zachary Lane; thence
North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1,
Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said
Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence
South along the east line of said Outlot A and its southerly extension to the south right-of-way
line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way
line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of
Section 24; thence South along said east line to the north line of the South Half of the
Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way
line of Jefferson Highway North; thence southerly along the westerly right-of-way line of
Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west
right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot
A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North
Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east
line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south
line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State
Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the
westerly right-of-way line of State Highway 169 and the northerly right-of-way line of
Interstate 694 to its intersection with the southerly extension of the easterly right-of-way
line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary
Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence
westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning
and there terminating, provided that the project area includes the rights-of-way for all present
and future highway interchanges abutting the area described in this paragraph, and may
include any additional property necessary to cause the property included in the tax increment
financing district to consist of complete parcels.
(d) "Soil deficiency district" means a type of tax increment financing district consisting
of a portion of the project area in which the city finds by resolution that the following
conditions exist:
(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in
the district require substantial filling, grading, or other physical preparation for use; and
(2) the estimated cost of the physical preparation under clause (1), but excluding costs
directly related to roads as defined in Minnesota Statutes, section 160.01, and local
improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses
(1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before
completion of the preparation.
Subd. 2.
Special rules.
(a) If the city elects, upon the adoption of the tax increment
financing plan for a district, the rules under this section apply to a redevelopment district,
renewal and renovation district, soil condition district, or soil deficiency district established
by the city or a development authority of the city in the project area.
(b) Prior to or upon the adoption of the first tax increment plan subject to the special
rules under this subdivision, the city must find by resolution that parcels consisting of at
least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way,
are characterized by one or more of the following conditions:
(1) peat or other soils with geotechnical deficiencies that impair development of
commercial buildings or infrastructure;
(2) soils or terrain that require substantial filling in order to permit the development of
commercial buildings or infrastructure;
(3) landfills, dumps, or similar deposits of municipal or private waste;
(4) quarries or similar resource extraction sites;
(5) floodway; and
(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174,
subdivision 10.
(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the
relevant condition if at least 70 percent of the area of the parcel contains the relevant
condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
substandard buildings if substandard buildings occupy at least 30 percent of the area of the
parcel.
(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to deleted text begin eightdeleted text end new text begin 13new text end years for any district, and Minnesota Statutes, section 469.1763,
subdivision 4, does not apply to any district.
(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763,
subdivision 2, paragraph (a), not more than 40 percent of the total revenue derived from tax
increments paid by properties in any district, measured over the life of the district, may be
expended on activities outside the district but within the project area.
(f) For a soil deficiency district:
(1) increments may be collected through deleted text begin 20deleted text end new text begin 25new text end years after the receipt by the authority
of the first increment from the district;
(2) increments may be used only to:
(i) acquire parcels on which the improvements described in item (ii) will occur;
(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional
cost of installing public improvements directly caused by the deficiencies; and
(iii) pay for the administrative expenses of the authority allocable to the district; and
(3) any parcel acquired with increments from the district must be sold at no less than
their fair market value.
(g) Increments spent for any infrastructure costs, whether inside a district or outside a
district but within the project area, are deemed to satisfy the requirements of Minnesota
Statutes, section 469.176, subdivision 4j.
(h) The authority to approve tax increment financing plans to establish tax increment
financing districts under this section expires June 30, 2020.
(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use
increments from a soil deficiency district to acquire parcels and for other infrastructure costs
either inside or outside of the district, but within the project area, if the acquisition or
infrastructure is for a qualified development. For purposes of this paragraph, a development
is a qualified development only if all of the following requirements are satisfied:
(1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken
primarily to serve the development;
(2) the city has a binding, written commitment and adequate financial assurances from
the developer that the development will be constructed; and
(3) the development does not consist of retail trade or housing improvements.
new text begin EFFECTIVE DATE. new text end
new text begin
(a) The extension of the five- and six-year rules under this section
are effective the day after the governing body of the city of Maple Grove and its chief
clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end
new text begin
(b) The district duration extension under this section is effective upon compliance by
the city of Maple Grove, Hennepin County, and Independent School District No. 279 with
the requirements of Minnesota Statutes, section 469.1782, subdivision 2.
new text end
Sec. 3.
Laws 2017, First Special Session chapter 1, article 6, section 22, is amended to
read:
Sec. 22. CITY OF ST. PAUL; FORD SITE REDEVELOPMENT TIF DISTRICT.
(a) For purposes of computing the duration limits under Minnesota Statutes, section
469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul
may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing
District. This authority is limited to the first four years of increment or increments derived
from taxes payable in 2023, whichever occurs first.
(b) If the city elects to waive receipt of increment under paragraph (a), for purposes of
applying any limits based on when the district was certified under Minnesota Statutes,
section 469.176, subdivision 6, or 469.1763, the date of certification for the district is deemed
to be January 2 of the property tax assessment year for which increment is first received
under the waiver.
new text begin
(c) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for the Ford Site Redevelopment Tax Increment Financing District in the city
of St. Paul.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of St. Paul and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 4. new text begin CITY OF BROOKLYN CENTER; TAX INCREMENT FINANCING
AUTHORITY.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
Under the special rules established in subdivision 2, the
economic development authority of the city of Brooklyn Center or the city of Brooklyn
Center may establish one or more redevelopment tax increment financing districts located
wholly within the area in the city identified as the "Opportunity Site," which includes the
area bounded by Shingle Creek Parkway from Hennepin County State-Aid Highway 10 to
Summit Drive North; Summit Drive North from Shingle Creek Parkway to marked Trunk
Highway 100; marked Trunk Highway 100 from Summit Drive North to Hennepin County
State-Aid Highway 10; and Hennepin County State-Aid Highway 10 from marked Trunk
Highway 100 to Shingle Creek Parkway, together with internal and adjacent roads and
rights-of-way.
new text end
new text begin Subd. 2. new text end
new text begin Special rules. new text end
new text begin
If the city or the authority establishes a tax increment financing
district under this section, the following special rules apply:
new text end
new text begin
(1) the district is deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10; and
new text end
new text begin
(2) expenditures incurred in connection with the development of the property described
in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
subdivision 4j.
new text end
new text begin Subd. 3. new text end
new text begin Expiration. new text end
new text begin
The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires on December 31, 2030.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Brooklyn Center and its chief clerical officer comply with the requirements of
Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 5. new text begin CITY OF BROOKLYN PARK; TAX INCREMENT FINANCING
AUTHORITY; VILLAGE CREEK AREA.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment of districts. new text end
new text begin
Upon the termination of Tax Increment
Financing District No. 20 within the city of Brooklyn Park, under the special rules established
in subdivision 2, the economic development authority of the city of Brooklyn Park or city
of Brooklyn Park may establish one or more redevelopment tax increment financing districts
located wholly within the area of the city of Brooklyn Park. The districts may be comprised
of the following parcels identified by their current parcel identification numbers:
new text end
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together with adjacent and internal roads and rights-of-way, and the following roadways
within the city of Brooklyn Park: Zane Avenue North (from and including the intersection
at 78th Avenue North to and including the intersection at Highway 94), Brooklyn Boulevard
(from and including the intersection at the border of Brooklyn Center to and including the
intersection at Kentucky Avenue North), Brookdale Drive North (from and including the
intersection at Zane Avenue North to and including the intersection at Welcome Avenue
North), Village Creek Parkway North, 77th Avenue North (from and including the
intersection at Village Creek Parkway North to and including the intersection at Brookdale
Drive North), 73rd Avenue North/Regent Avenue (from and including the intersection at
Zane Avenue North to and including the intersection at Brooklyn Boulevard).
new text end
new text begin Subd. 2. new text end
new text begin Special rules. new text end
new text begin
If the city or the authority establishes any tax increment financing
district under subdivision 1, the following special rules apply:
new text end
new text begin
(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10;
new text end
new text begin
(2) expenditures incurred in connection with the development of the property described
in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
subdivision 4j; and
new text end
new text begin
(3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years.
new text end
new text begin Subd. 3. new text end
new text begin Expiration. new text end
new text begin
The authority to request certification of any district under this
section expires on December 31, 2030.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021.
new text end
Sec. 6. new text begin CITY OF BROOKLYN PARK; TAX INCREMENT FINANCING
AUTHORITY; 610/ZANE AREA.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment of districts. new text end
new text begin
Under the special rules established in
subdivision 2, the economic development authority of the city of Brooklyn Park or the city
of Brooklyn Park may establish one or more redevelopment districts located wholly within
the area of the city of Brooklyn Park. The districts may be comprised of the following
parcels identified by their current parcel identification numbers together with adjacent and
internal roads and rights-of-way:
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new text begin Subd. 2. new text end
new text begin Special rules. new text end
new text begin
If the city or the authority establishes any tax increment financing
district under subdivision 1, the following special rules apply:
new text end
new text begin
(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10;
new text end
new text begin
(2) expenditures incurred in connection with the development of the property described
in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
subdivision 4j; and
new text end
new text begin
(3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years.
new text end
new text begin Subd. 3. new text end
new text begin Expiration. new text end
new text begin
The authority to request certification of any district under this
section expires on December 31, 2030.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021.
new text end
Sec. 7. new text begin CITY OF BROOKLYN PARK; TAX INCREMENT FINANCING
AUTHORITY; BIOTECH AREA.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
Under the special rules established in subdivision 2, the
economic development authority of the city of Brooklyn Park or the city of Brooklyn Park
may establish one or more redevelopment districts located wholly within the area of the
city of Brooklyn Park. The districts may be comprised of the following parcels identified
by their current parcel identification numbers together with adjacent and internal roads and
rights-of-way:
new text end
|
new text begin
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new text begin
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new text begin
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new text begin
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|
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new text begin
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new text begin
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new text begin
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new text begin Subd. 2. new text end
new text begin Special rules. new text end
new text begin
If the city or the authority establishes any tax increment financing
district under subdivision 1, the following special rules apply:
new text end
new text begin
(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10;
new text end
new text begin
(2) expenditures incurred in connection with the development of the property described
in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
subdivision 4j; and
new text end
new text begin
(3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years.
new text end
new text begin Subd. 3. new text end
new text begin Expiration. new text end
new text begin
The authority to request certification of any district under this
section expires on December 31, 2030.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021.
new text end
Sec. 8. new text begin CITY OF EDEN PRAIRIE; TAX INCREMENT FINANCING AUTHORITY;
EDEN PRAIRIE CENTER.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
Under the special rules established in subdivision 2, the
economic development authority of the city of Eden Prairie or the city of Eden Prairie may
establish one or more redevelopment districts located wholly within the area of the city of
Eden Prairie consisting of parcels, together with adjacent roads and rights-of-way, within
the area surrounded by Flying Cloud Drive, West 78th Street, and Prairie Center Drive.
new text end
new text begin Subd. 2. new text end
new text begin Special rules. new text end
new text begin
If the city or authority establishes a tax increment financing
district under this section, the following special rules apply:
new text end
new text begin
(1) the districts are deemed to meet the requirements of Minnesota Statutes, section
469.174, subdivision 10; and
new text end
new text begin
(2) expenditures incurred in connection with the development of the property described
in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
subdivision 4j.
new text end
new text begin Subd. 3. new text end
new text begin Expiration. new text end
new text begin
The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires December 31, 2025.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Eden Prairie and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 9. new text begin CITY OF EDINA; 72ND & FRANCE 2 TIF DISTRICT; FIVE-YEAR RULE
EXTENSION; DURATION EXTENSION.
new text end
new text begin
(a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for Tax Increment Financing District 72nd & France 2 in the city of Edina.
new text end
new text begin
(b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the
city of Edina or its housing and redevelopment authority may elect to extend the duration
of the district by five years for Tax Increment Financing District 72nd & France 2.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
Paragraph (a) is effective the day after the governing body of the
city of Edina and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance
by the city of Edina, Hennepin County, and Independent School District No. 273 with the
requirements of Minnesota Statutes, section 469.1782, subdivision 2.
new text end
Sec. 10. new text begin CITY OF EDINA; 70TH & FRANCE TIF DISTRICT; FIVE-YEAR RULE
EXTENSION; DURATION EXTENSION.
new text end
new text begin
(a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for Tax Increment Financing District 70th & France in the city of Edina.
new text end
new text begin
(b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the
city of Edina or its housing and redevelopment authority may elect to extend the duration
of the district by ten years for Tax Increment Financing District 70th & France.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
Paragraph (a) is effective the day after the governing body of the
city of Edina and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance
by the city of Edina, Hennepin County, and Independent School District No. 273 with the
requirements of Minnesota Statutes, section 469.1782, subdivision 2.
new text end
Sec. 11. new text begin CITY OF MINNETONKA; OPUS TIF DISTRICT; FIVE-YEAR RULE
EXTENSION.
new text end
new text begin
The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for the Opus tax increment financing district established in 2021 by the economic
development authority in the city of Minnetonka.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Minnetonka and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 12. new text begin CITY OF MOORHEAD; TAX INCREMENT FINANCING DISTRICT
NO. 31; FIVE-YEAR RULE EXTENSION.
new text end
new text begin
The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for Tax Increment Financing District No. 31 in the city of Moorhead.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Moorhead and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 13. new text begin CITY OF PLYMOUTH; TAX INCREMENT FINANCING AUTHORITY;
FIVE-YEAR RULE EXTENSION.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
Under the special rules established in subdivision 2, the
city of Plymouth may establish one or more redevelopment districts located wholly within
the city of Plymouth, Hennepin County, Minnesota, limited to the area identified as the city
center district in the Plymouth, Minnesota Zoning Map in effect on January 1, 2024, and
adopted pursuant to section 21000.12 of the Plymouth Zoning Code of Ordinances.
new text end
new text begin Subd. 2. new text end
new text begin Special rules. new text end
new text begin
If the city establishes a tax increment financing district under
this section, the following special rules apply:
new text end
new text begin
(1) the district is deemed to meet the requirements of Minnesota Statutes, section 469.174,
subdivision 10;
new text end
new text begin
(2) expenditures incurred in connection with the development of the property described
in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
subdivision 4j; and
new text end
new text begin
(3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years.
new text end
new text begin Subd. 3. new text end
new text begin Expiration. new text end
new text begin
The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires December 31, 2030.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Plymouth and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 14. new text begin CITY OF ST. CLOUD; TAX INCREMENT FINANCING AUTHORITY.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
Under the special rules established in subdivision 2, the
economic development authority of the city of St. Cloud or the city of St. Cloud may establish
one or more redevelopment districts adjacent to the Division Street corridor or within the
Central Business District or Fringe Central District, limited to the following parcels identified
by tax identification numbers, together with the adjacent roads and rights-of-way:
new text end
new text begin
(1) in Stearns County: 82517020000 (Lady Slipper Catalyst Site); 82515440001 (North
Riverfront Catalyst Site); 82515470000; 82515480000 (Empire Catalyst Site); 82518760015
(Swan Lot Catalyst Site); 82528850020 (Riverboat Lot Catalyst Site); and 82528850001
(Former Herbergers); and
new text end
new text begin
(2) in Benton County: 170037810 (Transit Oriented Development Catalyst Site);
170058101 (Ace Block Catalyst Site); 170042000; 170041600; 170041100; 170041601;
170041200; 170041800; 170059600 (Star Bank Catalyst Site); 170059300 (Riverfront South
Catalyst Site); 170058300; 170059200; 170058600; 170058800; 170059100; and 170058900.
new text end
new text begin Subd. 2. new text end
new text begin Special rules. new text end
new text begin
If the city or authority establishes a tax increment financing
district under this section, the following special rules apply:
new text end
new text begin
(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10;
new text end
new text begin
(2) expenditures incurred in connection with the development of the property described
in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
subdivision 4j; and
new text end
new text begin
(3) increments generated from the districts may be expended for the reconstruction,
expansion, or new construction of adjacent public infrastructure, including but not limited
to public parking, streets, and utilities necessary to serve the development, and all
expenditures under this clause are deemed expended on activities within the district for
purposes of Minnesota Statutes, section 469.1763.
new text end
new text begin Subd. 3. new text end
new text begin Expiration. new text end
new text begin
The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires December 31, 2030.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the city of St. Cloud and
its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2
and 3.
new text end
ARTICLE 6
LOCAL SALES AND USE TAXES
Section 1.
Minnesota Statutes 2023 Supplement, section 297A.99, subdivision 1, is
amended to read:
Subdivision 1.
Authorizationdeleted text begin ; scopedeleted text end .
(a) A political subdivision of this state may impose
a general sales taxnew text begin :
new text end
(1)new text begin under section 297A.9901;
new text end
new text begin (2)new text end under section 297A.9915deleted text begin , (2)deleted text end new text begin ;
new text end
new text begin (3)new text end under section 297A.992deleted text begin , (3)deleted text end new text begin ;
new text end
new text begin (4)new text end under section 297A.9925deleted text begin , (4)deleted text end new text begin ;
new text end
new text begin (5)new text end under section 297A.993deleted text begin , (5)deleted text end new text begin ;
new text end
new text begin (6)new text end if permitted by special lawdeleted text begin ,deleted text end new text begin ;new text end or
deleted text begin (6)deleted text end new text begin (7)new text end if the political subdivision enacted and imposed the tax before January 1, 1982,
and its predecessor provision.
(b) This section governs the imposition of a general sales tax by the political subdivision.
The provisions of this section preempt the provisions of any special law:
(1) enacted before June 2, 1997deleted text begin , ordeleted text end new text begin ;
new text end
(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
provision from this section's rules by referencedeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(3) enacted before July 1, 2024.
new text end
(c) This section does not apply to or preempt a sales tax on motor vehicles. Beginning
July 1, 2019, no political subdivision may impose a special excise tax on motor vehicles
unless it is imposed under section 297A.993.
(d) A political subdivision may not advertise or expend funds for the promotion of a
referendum to support imposing a local sales tax and may only spend funds related to
imposing a local sales tax to:
(1) conduct the referendum;
(2) disseminate information included in the resolution adopted under subdivision 2, but
only if the disseminated information includes a list of specific projects and the cost of each
individual project;
(3) provide notice of, and conduct public forums at which proponents and opponents on
the merits of the referendum are given equal time to express their opinions on the merits of
the referendum;
(4) provide facts and data on the impact of the proposed local sales tax on consumer
purchases; and
(5) provide facts and data related to the individual programs and projects to be funded
with the local sales tax.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2022, section 297A.99, is amended by adding a subdivision to
read:
new text begin Subd. 2a. new text end
new text begin Scope. new text end
new text begin
The provisions of this section only apply to a tax imposed and enacted
by special law. A political subdivision seeking to amend, extend, or otherwise change a tax
imposed and enacted before July 1, 2024, must do so pursuant to the requirements of section
297A.9901.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2022, section 297A.99, subdivision 3, is amended to read:
Subd. 3.
Legislative authority required before voter approval; requirements for
adoption, use, termination.
(a) A political subdivision must receive legislative authority
to impose a local sales tax before submitting the tax for approval by voters of the political
subdivision. Imposition of a local sales tax is subject to approval by voters of the political
subdivision at a general election. The election must be conducted at a general election within
the two-year period after the governing body of the political subdivision has received
authority to impose the tax. If the authorizing legislation allows the tax to be imposed for
more than one project, there must be a separate question approving the use of the tax revenue
for each project. Notwithstanding the authorizing legislation, a project that is not approved
by the voters may not be funded with the local sales tax revenue and the termination date
of the tax set in the authorizing legislation must be reduced proportionately based on the
share of that project's cost to the total costs of all projects included in the authorizing
legislation.
(b) The proceeds of the tax must be dedicated exclusively to payment of the construction
and rehabilitation costs and associated bonding costs related to the specific capital
improvement projects that were approved by the voters under paragraph (a).
(c) The tax must terminate after the revenues raised are sufficient to fund the projects
approved by the voters under paragraph (a).
(d) After a sales tax imposed by a political subdivision has expired or been terminated,
the political subdivision is prohibited from imposing a local sales tax for a period of one
year.
(e) deleted text begin Notwithstanding paragraph (a), if a political subdivision received voter approval to
seek authority for a local sales tax at the November 6, 2018, general election and is granted
authority to impose a local sales tax before January 1, 2021, the tax may be imposed without
an additional referendum provided that it meets the requirements of subdivision 2 and the
list of specific projects contained in the resolution does not conflict with the projects listed
in the approving referendum.deleted text end new text begin Beginning January 1, 2025, the reporting requirements under
section 297A.9902 apply to taxes authorized under special law or the requirements of this
section.
new text end
(f) If a tax is terminated because sufficient revenues have been raised, any amount of
tax collected under subdivision 9, after sufficient revenues have been raised and before the
quarterly termination required under subdivision 12, paragraph (a), that is greater than the
average quarterly revenues collected over the immediately preceding 12 calendar months
must be retained by the commissioner for deposit in the general fund.
new text begin
(g) Upon expiration of a tax authorized under this section or any other law, ordinance,
or city charter, the combined tax rate limit in section 297A.9901, subdivision 7, applies.
new text end
new text begin
(h) If, after receiving voter approval, a political subdivision cancels a project approved
by the voters, the political subdivision must notify the commissioner. The commissioner
must proportionately decrease the maximum amount of tax revenue the political subdivision
may collect and must adjust the termination of the tax accordingly. If the political subdivision
has already collected revenue for the canceled project, the political subdivision must return
the funds to the commissioner for deposit into the local sales tax equalization distribution
account.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
new text begin
[297A.9901] LOCAL SALES TAXES; LOCAL AUTHORIZATION
ALLOWED.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For the purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Convention center" means a structure that is expressly designed and constructed
for the purpose of presenting conventions, public meetings, and exhibitions and that contains
at least 50,000 square feet for exhibit and meeting spaces and includes parking facilities
that serve the center.
new text end
new text begin
(c) "Correctional facility" means a public facility licensed and inspected by the
commissioner of corrections, established and operated for the detention and confinement
of adults or juveniles, including but not limited to programs or facilities operating under
chapter 401, secure juvenile detention facilities, municipal holding facilities, juvenile
temporary holdover facilities, regional or local jails, lockups, work houses, work farms, and
detention facilities.
new text end
new text begin
(d) "District court" means one of the ten judicial district courts in the state of Minnesota
subject to chapter 484.
new text end
new text begin
(e) "Law enforcement center" means a facility that serves multiple communities and
provides public safety functions, including a fire or police station and a facility that provides
emergency 911 and dispatch functions, training facilities, court security and support,
emergency operations, evidence and record retention, and other public safety services.
new text end
new text begin
(f) "Library" means a library that is part of a regional public library system as designated
by the regional library board pursuant to section 134.20.
new text end
new text begin
(g) "Metropolitan county" has the meaning given in section 473.121, subdivision 4.
new text end
new text begin
(h) "Park" means an area of regional significance that contains natural, seminatural, or
planted space set aside for recreation and enjoyment of the public or for the protection of
wildlife or natural habitats.
new text end
new text begin
(i) "Political subdivision" means a county located in Minnesota or a statutory or home
rule charter city located in Minnesota.
new text end
new text begin
(j) "Prevailing wage rate" has the meaning given in section 177.42, subdivision 6.
new text end
new text begin
(k) "Specified capital project" means a convention center, correctional facility, district
court, law enforcement center, library, park, or trail. A specified capital project must serve
a regional population, provide economic development benefits and opportunities, or draw
nonresident individuals to the region.
new text end
new text begin
(l) "Sports complex" means a defined area of sports pavilions, stadiums, gymnasiums,
swimming pools, or similar facilities where regional tournaments may be hosted, and where
members of the public engage in physical exercise, participate in athletic competitions,
witness sporting events, and host regional tournaments.
new text end
new text begin
(m) "Trail" means a path or track that passes through a natural area and that serves a
destination, provides recreational opportunities, and draws a regional population.
new text end
new text begin Subd. 2. new text end
new text begin Local authorization allowed. new text end
new text begin
Notwithstanding section 477A.016 or any other
law or ordinance, a political subdivision may impose, extend, or modify the uses of a local
sales tax to finance a specified capital project by: (1) meeting the requirements of this
section; (2) receiving approval from the commissioner; and (3) receiving voter approval.
The authorization under this section applies to an extension to or modification of a local
sales tax authorized under special law or the requirements of section 297A.99, or any other
law, ordinance, city charter, or other provision.
new text end
new text begin Subd. 3. new text end
new text begin Use of proceeds. new text end
new text begin
The proceeds of a tax imposed under this section must be
dedicated exclusively to payment of construction or rehabilitation costs, including associated
bonding costs, related to the specified capital projects approved by the voters. Specified
capital projects must meet the requirements specified in subdivisions 1 and 4 to 6. The
political subdivision imposing the tax must not commingle revenue from a tax approved by
the voters under this section with revenue from a tax authorized under section 297A.99, or
any other law, ordinance, city charter, or other provision, including an extension of or
modification to the uses of a tax for a different project.
new text end
new text begin Subd. 4. new text end
new text begin Sports complexes and convention centers; additional requirements. new text end
new text begin
(a) To
impose a tax to fund the construction or rehabilitation of a sports complex or convention
center, a political subdivision must demonstrate the following:
new text end
new text begin
(1) an analysis of the surrounding region demonstrates that there is no similar sports
complex or convention center open to nonresidents at the same cost as residents within a
15-mile radius of the political subdivision for political subdivisions located outside of a
metropolitan county and within an eight-mile radius of the political subdivision for political
subdivisions located within a metropolitan county; and
new text end
new text begin
(2) if admission or entry fees are charged to members of the public for use of the facility,
the fees must be charged equally to residents and nonresidents of the political subdivision
imposing the tax.
new text end
new text begin
(b) The political subdivision must submit documentation of the requirements of paragraph
(a) to the commissioner pursuant to the requirements of section 297A.9902, subdivision 1.
new text end
new text begin Subd. 5. new text end
new text begin Criminal justice facilities; additional requirements. new text end
new text begin
(a) To impose a tax to
fund the construction or rehabilitation of or improvements to a correctional facility, a political
subdivision must demonstrate the need for the facility by providing official documentation
of the age of the facility; and either:
new text end
new text begin
(1) official correspondence from the Department of Corrections that includes an analysis
of the facility and description of the improvements or updates needed; or
new text end
new text begin
(2) if the facility is a joint project between two or more counties, the joint powers
agreement or other official documentation between at least one other county demonstrating
that the facility will serve public safety functions for the region.
new text end
new text begin
(b) To impose a tax to fund construction or rehabilitation of or improvements to a district
court office, a political subdivision must demonstrate the need for the facility by providing
the age of the facility and a description of improvements needed.
new text end
new text begin
(c) To impose a tax to fund construction or rehabilitation of or improvements to a law
enforcement center, a political subdivision must provide resolutions from the governing
bodies of surrounding counties, statutory or home rule charter cities, or townships affirming
that the functions of the law enforcement center will meet the needs of the surrounding
county, statutory or home rule charter city, or township.
new text end
new text begin
(d) The political subdivision must submit documentation of the requirements of
paragraphs (a) to (c) to the commissioner pursuant to the requirements of section 297A.9902,
subdivision 1.
new text end
new text begin Subd. 6. new text end
new text begin Parks and trails; additional requirements. new text end
new text begin
(a) To impose a tax to fund the
construction or rehabilitation of or improvements to a park, a political subdivision must
demonstrate that the park:
new text end
new text begin
(1) provides a natural resource-based setting, outdoor recreation facilities, and multiple
activities that are primarily natural resource-based;
new text end
new text begin
(2) occupies at least 100 acres of land;
new text end
new text begin
(3) is utilized by a regional population; and
new text end
new text begin
(4) includes unique natural, historic, or cultural features or characteristics.
new text end
new text begin
(b) To impose a tax to fund the construction or rehabilitation of or improvements to a
trail, a political subdivision must demonstrate that the trail:
new text end
new text begin
(1) serves more than a local population and encompasses multiple jurisdictions; and
new text end
new text begin
(2) connects to existing or planned state or regional parks or trails.
new text end
new text begin
(c) The political subdivision must submit documentation of the requirements of
paragraphs (a) and (b) to the commissioner pursuant to the requirements of section
297A.9902, subdivision 1.
new text end
new text begin
(d) In determining whether the proposed park or trail meets the criteria established in
paragraphs (a) and (b), the commissioner may consult examples and guidance provided by
the Department of Natural Resources Parks and Trails Legacy Plan dated February 14, 2011.
new text end
new text begin Subd. 7. new text end
new text begin Tax rate and duration. new text end
new text begin
(a) The combined total tax rate imposed by a political
subdivision under this section and section 297A.99 must not exceed one percent. If a local
sales tax is imposed by a county, the limit under this paragraph includes any tax authorized
under section 297A.993.
new text end
new text begin
(b) The maximum collection period for a tax imposed under this section must be the
earlier of the amount of time necessary to collect the revenue equal to the cost of the specified
capital projects approved by the voters, including associated financing costs, or 30 years.
new text end
new text begin Subd. 8. new text end
new text begin Bonds; authorization. new text end
new text begin
(a) A political subdivision may issue bonds under
chapter 475 to finance all or a portion of the costs of a specified capital project. The aggregate
principal amount of bonds issued must not exceed the cost of a qualifying capital project
approved by the voters, plus an amount to be applied to the payment of the costs of issuing
the bonds. The bonds may be paid from or secured by any funds available to the political
subdivision, including the tax authorized under this section and approved by the voters. The
issuance of bonds under this subdivision is not subject to sections 275.60 and 275.61.
new text end
new text begin
(b) A separate election to approve the bonds under section 475.58 is not required.
new text end
new text begin Subd. 9. new text end
new text begin Public hearing required. new text end
new text begin
(a) Prior to seeking authority to impose a tax under
this section, a political subdivision must hold at least one public hearing occurring not before
6:00 p.m. that is open to residents and nonresidents, at which equal time is given to
proponents and opponents to express their opinions on the imposition of the tax. Notice of
the hearing must be given at least 14 days in advance and published on the political
subdivision's website detailing the time and location of the hearing and contain the following
information:
new text end
new text begin
(1) the proposed tax rate;
new text end
new text begin
(2) a description of each project proposed to be funded by the local sales tax; and
new text end
new text begin
(3) the amount of tax revenue to be used for each project and the estimated time needed
to raise that amount of revenue, inclusive of the estimated amount distributed under
subdivision 16, paragraph (a).
new text end
new text begin
(b) The political subdivision must submit the minutes from this hearing to the
commissioner when requesting approval of the tax pursuant to the provisions of section
297A.9902, subdivision 1, paragraph (a).
new text end
new text begin Subd. 10. new text end
new text begin Resolution required. new text end
new text begin
(a) After conducting the public hearing required under
subdivision 9 and before the governing body of a political subdivision seeks voter approval
to impose a local sales tax, the governing body must adopt a resolution indicating its approval
of the tax. The resolution must include the following information:
new text end
new text begin
(1) the proposed tax rate;
new text end
new text begin
(2) a detailed description of no more than three projects that will be funded with revenue
from the tax;
new text end
new text begin
(3) documentation of the regional significance of each specified capital project, including:
new text end
new text begin
(i) the share of the economic benefit to or use of each project by persons residing, or
businesses located, outside of the jurisdiction; and
new text end
new text begin
(ii) demonstration that the project meets the requirements of the applicable definitions
in subdivision 1, as well as the requirements of subdivisions 4 to 6;
new text end
new text begin
(4) the amount of local sales tax revenue that will be used for each project and the
estimated time needed to raise that amount of revenue; and
new text end
new text begin
(5) the total revenue that will be raised for all projects before the tax expires, and the
estimated length of time that the tax will be in effect if all proposed projects are funded.
new text end
new text begin
(b) The political subdivision must submit the resolution along with underlying
documentation to the commissioner pursuant to the provisions of section 297A.9902,
subdivision 1, paragraph (a).
new text end
new text begin Subd. 11. new text end
new text begin Community support required. new text end
new text begin
Prior to seeking authority to impose a tax
under this section, a political subdivision must provide to the commissioner letters or
resolutions from the governing bodies of at least two surrounding local governments that
affirmatively acknowledge that there is a local or regional need for the proposed specified
capital project. Documentation must be submitted to the commissioner as required by section
297A.9902, subdivision 1, paragraph (a).
new text end
new text begin Subd. 12. new text end
new text begin Voter approval required. new text end
new text begin
(a) A local sales tax approved by the commissioner
is subject to voter approval prior to being imposed. A referendum must be conducted pursuant
to the following requirements:
new text end
new text begin
(1) the referendum must be held on the first Tuesday after the first Monday in November
at a general or special election, so long as the ballot question for approval of the tax is not
the only item on the ballot, within the two-year period after the political subdivision has
received authority to impose the tax. For purposes of this section, "general election" and
"special election" have the meanings given in section 200.02, except that a special election
held under this section must be held on the first Tuesday after the first Monday in November;
new text end
new text begin
(2) the ballot language must contain the following information:
new text end
new text begin
(i) a description of each specified capital project that will be funded by the tax;
new text end
new text begin
(ii) the projected start date of the tax;
new text end
new text begin
(iii) the proposed tax rate;
new text end
new text begin
(iv) the cost of the project, including associated financing costs;
new text end
new text begin
(v) the maximum amount of time the tax will be imposed;
new text end
new text begin
(vi) a statement that a portion of the tax revenue will be used for payment into the local
sales tax equalization distribution account; and
new text end
new text begin
(vii) a statement that an affirmative vote means that a new tax will be imposed or that
an existing tax will be extended or increased;
new text end
new text begin
(3) the ballot language must not contain any statement that informs the voter that by
voting "no" the voter acknowledges that the project subject to approval in the question may
be funded by increased property taxes; and
new text end
new text begin
(4) each project must be a separate ballot question if a political subdivision is seeking
voter approval for more than one project.
new text end
new text begin
(b) A project that is not approved by the voters may not be funded with the tax revenue
and the termination date of the tax approved by the commissioner must be reduced
proportionately based on the share of that project's cost to the total costs of all projects.
new text end
new text begin
(c) A political subdivision may not advertise or expend funds for the promotion of a
referendum to support imposing a tax and may only spend funds related to:
new text end
new text begin
(1) conduct the referendum;
new text end
new text begin
(2) disseminate information regarding the projects to be funded with the tax;
new text end
new text begin
(3) provide notice of and conduct public forums at which proponents and opponents of
the referendum are given equal time to express their opinions on the merits of the referendum;
and
new text end
new text begin
(4) provide facts and data on the impact of the proposed local sales tax on consumer
purchases.
new text end
new text begin
(d) The political subdivision must submit the language of each ballot question to the
commissioner for approval prior to printing the ballot for use in a referendum.
new text end
new text begin Subd. 13. new text end
new text begin Legislative approval required. new text end
new text begin
(a) A political subdivision seeking to impose
a tax must obtain legislative approval to impose the tax if the tax does not meet the
requirements of this section or if the commissioner does not approve the proposal submitted
for imposition of the tax. The provisions of section 297A.99 apply to any tax imposed by
special law.
new text end
new text begin
(b) In addition to the requirements imposed under section 297A.99, subdivision 2, the
political subdivision must include in its resolution submitted to the legislature:
new text end
new text begin
(1) a detailed description of how the request does not meet the requirements of this
section; and
new text end
new text begin
(2) letters or resolutions from the governing bodies of each local government located in
Minnesota that abuts the political subdivision that affirmatively acknowledge that there is
a local or regional need for the proposed capital project.
new text end
new text begin
(c) A tax approved by the legislature is subject to the collection and retention provisions
of subdivision 16, section 297A.9902, subdivision 2, and section 297A.9903.
new text end
new text begin Subd. 14. new text end
new text begin Filing requirements. new text end
new text begin
After receiving voter approval, a political subdivision
with approval to impose a tax from the commissioner or special law must file a certificate
of local approval with the secretary of state pursuant to section 645.021, subdivisions 2 and
3, for the tax to be lawfully imposed.
new text end
new text begin Subd. 15. new text end
new text begin Administration; termination. new text end
new text begin
(a) A political subdivision imposing a tax
under this section must not commingle revenue from a tax for a project or projects approved
by the voters under this section with revenue from a tax authorized under section 297A.99
or any other law, ordinance, city charter, or other provision, including an extension of or
modification to the uses of a tax for a different project.
new text end
new text begin
(b) A political subdivision imposing the tax must notify the commissioner and the state
auditor at least 60 days before the date the political subdivision anticipates that revenues
raised from the tax are sufficient to fund the projects approved by the voters. The notification
applies to each authorization of a tax and each project approved by the voters, regardless
of whether the legislature has authorized the tax, notwithstanding the requirements of section
297A.99, subdivision 3, paragraph (d).
new text end
new text begin
(c) After a tax imposed by a political subdivision has expired or been terminated, the
political subdivision is prohibited from imposing a new local sales tax for a period of one
year.
new text end
new text begin
(d) If, after receiving voter approval, a political subdivision cancels a project approved
by the voters, the political subdivision must notify the commissioner and the state auditor.
The commissioner must proportionately decrease the maximum amount of tax revenue the
political subdivision may collect and must adjust the termination of the tax accordingly. If
the political subdivision has already collected revenue for the canceled project, the political
subdivision must return the funds to the commissioner for deposit into the local sales tax
equalization distribution account.
new text end
new text begin Subd. 16. new text end
new text begin Collection and retention. new text end
new text begin
(a) The commissioner shall remit the proceeds of
the tax, less refunds and a proportionate share described in clauses (1) to (3), at least
quarterly, to the political subdivision. The commissioner shall deduct from the proceeds
distributed to a political subdivision an amount that equals:
new text end
new text begin
(1) one percent for the direct and indirect costs of the department to administer, audit,
and collect the tax, of which a portion must be used for the cost of constructing and
maintaining a zip code or geocode database necessary for local sales tax collections under
the Streamlined Sales and Use Tax Agreement in section 297A.995;
new text end
new text begin
(2) one percent for the direct and indirect costs of the state auditor to audit the tax; and
new text end
new text begin
(3) the political subdivision's contribution share of the amount to be paid under section
297A.9903, as defined by subdivision 17.
new text end
new text begin
(b) The revenue retained by the commissioner under paragraph (a), clause (1), must be
deposited into the Revenue Department service and recovery special revenue fund established
under section 270C.15.
new text end
new text begin
(c) The revenue retained for the purpose outlined in paragraph (a), clause (2), must be
deposited into the state auditor service and recovery account.
new text end
new text begin
(d) The revenue retained for the purpose outlined in paragraph (a), clause (3), must be
deposited into the local sales tax equalization distribution account.
new text end
new text begin Subd. 17. new text end
new text begin Contribution share. new text end
new text begin
The amount of tax that the commissioner must retain
under subdivision 16, paragraph (a), clause (3), is equal to:
new text end
new text begin
(1) 15 percent for a political subdivision whose tax is authorized and imposed under this
section;
new text end
new text begin
(2) 15 percent for a political subdivision that amends, extends, or otherwise modifies a
tax that was authorized and imposed by special law before July 1, 2024; or
new text end
new text begin
(3) 20 percent for a political subdivision that is authorized by special law to impose a
new tax after July 1, 2024.
new text end
new text begin Subd. 18. new text end
new text begin Enforcement. new text end
new text begin
If notified by the state auditor that a political subdivision
imposing a tax under this section, section 297A.99, or by special law is not in compliance
with the requirements of section 297A.9902, subdivision 2, the commissioner must expire
the tax and deposit any funds collected into the local sales tax equalization distribution
account.
new text end
new text begin Subd. 19. new text end
new text begin Accounts established; transfer. new text end
new text begin
(a) The local sales tax equalization distribution
account is established in the special revenue fund. Funds in the account must be distributed
in accordance with section 297A.9903.
new text end
new text begin
(b) The state auditor service and recovery account is established in the special revenue
fund. Each October 1, the commissioner of revenue must transfer the balance of the account
into the general fund.
new text end
new text begin Subd. 20. new text end
new text begin Other provisions apply. new text end
new text begin
(a) The provisions of section 297A.99, subdivisions
4 to 10 and 12 to 13, apply to taxes authorized under this section.
new text end
new text begin
(b) The requirements of section 475.53 apply to bonds issued for projects under this
section.
new text end
new text begin
(c) The prevailing wage rate applies to all contracts for construction of specified capital
projects under this section.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
new text begin
[297A.9902] LOCAL SALES TAXES; VERIFICATION AND OVERSIGHT.
new text end
new text begin Subdivision 1. new text end
new text begin Filing requirement. new text end
new text begin
(a) A political subdivision seeking to impose a local
sales tax under the provisions of section 297A.9901 must file a copy of all documentation
required under section 297A.9901 with the commissioner. A political subdivision may file
documentation at any point during the year, but documentation must be filed by October
31 to comply with the requirements of section 297A.99, subdivision 2, paragraph (b).
new text end
new text begin
(b) The commissioner must verify whether each project included in the submission under
paragraph (a) meets the requirements of section 297A.9901. The commissioner must notify
the political subdivision of the commissioner's determination within 60 days of receipt of
the submission under paragraph (a). Any political subdivision that files its submission by
October 31 must receive the commissioner's determination by January 10 of the following
year. If the commissioner determines that a project does not meet the requirements of section
297A.9901, the political subdivision may seek legislative authorization for a local sales tax
to finance the project under the provisions of section 297A.99.
new text end
new text begin Subd. 2. new text end
new text begin Annual financial reporting. new text end
new text begin
By January 31 of each budget year, a political
subdivision imposing a local sales tax pursuant to section 297A.99 or 297A.9901 or under
special law, or by city charter or ordinance must submit information regarding the uses of
the local sales tax to the state auditor. The information must be submitted in the form and
manner prescribed by the state auditor. The state auditor or the state auditor's designees
may examine records of a political subdivision to complete or verify the provided
information.
new text end
new text begin Subd. 3. new text end
new text begin Enforcement. new text end
new text begin
If the state auditor finds a political subdivision does not provide
the information required by subdivision 2 of this section or is not in compliance with the
required use of proceeds of the local sales tax as provided by section 297A.9901, subdivision
3, as approved by the voters or any use of proceeds requirements as required by a special
law as approved by the voters, the state auditor must notify the governing body of the
political subdivision of its findings. The governing body of the political subdivision must
respond in writing to the state auditor within 60 days after receiving the notification. The
written response must state whether the political subdivision accepts in whole or in part the
auditor's findings. If the political subdivision does not accept the findings, the statement
must indicate the basis for its disagreement. If the political subdivision does not take
corrective measures within 60 days of receipt of notice of noncompliance, the state auditor
must notify the commissioner. The state auditor must annually summarize the responses it
receives under this subdivision and send the summary and copies of the responses to the
chairs of the committees of the legislature with jurisdiction over local sales taxes.
new text end
new text begin Subd. 4. new text end
new text begin Report. new text end
new text begin
By February 15 of each year, the state auditor must submit a report to
the chairs and ranking minority members of the legislative committees with jurisdiction
over taxes summarizing the information provided by political subdivisions in the preceding
year under subdivision 2.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 6.
new text begin
[297A.9903] LOCAL SALES TAX EQUALIZATION DISTRIBUTIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For the purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Adjusted net tax capacity" means the qualified recipient's adjusted net tax capacity
under section 273.1325.
new text end
new text begin
(c) "Average fiscal capacity" means the sum of the adjusted net tax capacities of all
qualified recipients, divided by the sum of their populations.
new text end
new text begin
(d) "Contribution share" means the percentage of the total local sales taxes that were
collected by a political subdivision in the previous calendar year pursuant to section 297A.99,
subdivision 2a, or 297A.9901, subdivision 16, paragraph (a), clause (3).
new text end
new text begin
(e) "Distribution index" for a qualified recipient means the product of: (1) its population;
and (2) the proportion which the average fiscal capacity in the preceding year bears to the
fiscal capacity of the qualified recipient for the preceding year.
new text end
new text begin
(f) "Distribution share" for a qualified recipient means the product of: (1) the total of all
contribution shares of all political subdivisions; and (2) the proportion which the distribution
index for the qualified recipient bears to the sum of the distribution indices of all qualified
recipients.
new text end
new text begin
(g) "Fiscal capacity" of a qualified recipient means its adjusted net tax capacity divided
by its population.
new text end
new text begin
(h) "Local sales tax" means: (1) a local sales tax imposed under section 297A.9901; or
(2) a local sales tax imposed under section 297A.99, or special law that was enacted or
modified after July 1, 2024.
new text end
new text begin
(i) "Political subdivision" means a political subdivision as defined in section 297A.9901,
subdivision 1.
new text end
new text begin
(j) "Population" means the population estimated or established, as of January 1 in the
year distributions under this section are calculated, by the most recent federal census, by a
special census conducted under contract with the United States Bureau of the Census, or
by a population estimate of the state demographer made pursuant to section 4A.02, whichever
is the most recent.
new text end
new text begin
(k) "Qualified recipient" means a political subdivision that either: (1) had a contribution
share greater than $0 based on local sales taxes collected in the prior calendar year; or (2)
did not collect a local sales tax in the prior calendar year that was approved by voters prior
to July 1, 2024.
new text end
new text begin Subd. 2. new text end
new text begin Local sales tax revenue sharing required. new text end
new text begin
A political subdivision with a local
sales tax is subject to the contribution requirements under subdivision 3 for any calendar
year, or portion thereof, in which a local sales tax was collected. All qualified recipients
are eligible for distributions under this section, and the commissioner of revenue must
annually calculate each qualified recipient's distribution share.
new text end
new text begin Subd. 3. new text end
new text begin Contribution share. new text end
new text begin
Pursuant to section 297A.9901, subdivision 16, paragraph
(a), clause (3), the commissioner of revenue must annually retain each political subdivision's
contribution share. For any calendar year in which a political subdivision does not have a
local sales tax, the political subdivision's contribution share is $0.
new text end
new text begin Subd. 4. new text end
new text begin Certification. new text end
new text begin
The commissioner of revenue must annually calculate and certify
each political subdivision's contribution share and each qualified recipient's distribution
share, based on local sales taxes collected in the prior calendar year. The commissioner
must provide notice of the certification to each political subdivision by January 31.
new text end
new text begin Subd. 5. new text end
new text begin Settlement. new text end
new text begin
By March 15 annually, the commissioner of revenue must pay to
each qualified recipient the distribution share certified under subdivision 4.
new text end
new text begin Subd. 6. new text end
new text begin Future contributions and payments new text end
new text begin
A political subdivision that has imposed
a local sales tax prior to July 1, 2024, is a qualified recipient under this section if:
new text end
new text begin
(1) the political subdivision modifies, increases, or extends the local sales tax;
new text end
new text begin
(2) the political subdivision imposes a new local tax under section 297A.9901 or special
law; or
new text end
new text begin
(3) the political subdivision's existing local sales tax expires.
new text end
new text begin Subd. 7. new text end
new text begin Appropriation. new text end
new text begin
The amount required to make distributions under this section
is appropriated from the local sales tax equalization distribution account established under
section 297A.9901, subdivision 19, paragraph (a), to the commissioner of revenue.
new text end
Sec. 7. new text begin OFFICE OF THE STATE AUDITOR; APPROPRIATION.
new text end
new text begin
$387,000 in fiscal year 2025 is appropriated from the general fund to the state auditor
to implement the requirements of section 297A.9902. The base for this appropriation is
$343,000 in fiscal year 2026 and $360,000 in fiscal year 2027.
new text end
Sec. 8. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2023 Supplement, section 297A.99, subdivision 3a,
new text end
new text begin
is repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 7
SPECIAL LOCAL TAXES
Section 1.
Minnesota Statutes 2022, section 469.190, subdivision 1, is amended to read:
Subdivision 1.
Authorization.
new text begin (a) new text end Notwithstanding section 477A.016 or any other law,
a statutory or home rule charter city may by ordinance, and a town may by the affirmative
vote of the electors at the annual town meeting, or at a special town meeting, impose a tax
of up to three percent on the gross receipts from the furnishing for consideration of lodging
at a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing
of it for a continuous period of 30 days or more. A statutory or home rule charter city may
by ordinance impose the tax authorized under this subdivision on the camping site receipts
of a municipal campground.
new text begin
(b) A lodging tax imposed under this section, a city charter, or a special law applies to
the entire consideration paid to obtain access to lodging, including ancillary or related
services, such as services provided by an accommodations intermediary as defined in section
297A.61, subdivision 47.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2024.
new text end
Sec. 2.
Minnesota Statutes 2022, section 469.190, subdivision 7, is amended to read:
Subd. 7.
Collection.
new text begin (a) new text end The statutory or home rule charter city may agree with the
commissioner of revenue that a tax imposed pursuant to this section shall be collected by
the commissioner together with the tax imposed by chapter 297A, and subject to the same
interest, penalties, and other rules and that its proceeds, less the cost of collection, shall be
remitted to the city.
new text begin
(b) If a lodging tax imposed under this section, a city charter, or a special law is not
collected by the commissioner of revenue, the local government imposing the tax may, by
ordinance, limit the required filing and remittance of the tax by an accommodations
intermediary to once per calendar year. The local government must inform the
accommodations intermediary of the date when the return or remittance is due and the dates
must coincide with one of the monthly dates for filing and remitting state sales tax under
chapter 297A. The local government must electronically provide an accommodations
intermediary with the geographic and zip code information necessary to properly collect
the tax.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2024.
new text end
Sec. 3.
Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special Session
chapter 5, article 12, section 87, Laws 2012, chapter 299, article 3, section 3, and Laws
2019, First Special Session chapter 6, article 6, section 5, is amended to read:
Sec. 5. LIQUOR, LODGING, AND RESTAURANT TAXES.
The city may, by resolution, levy in addition to taxes authorized by other law:
(1) a sales tax of not more than deleted text begin threedeleted text end new text begin 2.5new text end percent on the gross receipts on retail on-sales
of intoxicating liquor and fermented malt beverages when sold at licensed on-sale liquor
establishments located within the downtown taxing area, provided that this tax may not be
imposed if sales of intoxicating liquor and fermented malt beverages are exempt from
taxation under chapter 297A;
(2) a sales tax of not more than three percent on the gross receipts from the furnishing
for consideration of lodging for a period of less than 30 days at a hotel, motel, rooming
house, tourist court, or trailer camp located within the city by a hotel or motel which has
more than 50 rooms available for lodging; the tax imposed under this clause shall be at a
rate that, when added to the sum of the rate of all other city taxes on lodging in the city of
Minneapolis, equals 6.5 percent; and
(3) a sales tax of not more than deleted text begin threedeleted text end new text begin 2.5new text end percent on the gross receipts on all sales of
food primarily for consumption on or off the premises by restaurants and places of
refreshment as defined by resolution of the city that occur within the downtown taxing area.
The taxes authorized by this section must not be terminated before January 1, 2047. The
taxes shall be imposed and may be adjusted periodically by the city council such that the
rates imposed produce revenue sufficient, together with the tax imposed under section 4,
to finance the purposes described in Minnesota Statutes, section 297A.994, and section 4,
subdivisions 3 and 4. These taxes shall be applied, first, as provided in Minnesota Statutes,
section 297A.994, subdivision 3, clauses (1) to (3), and then, solely to pay, secure, maintain,
and fund the payment of any principal of, premium on, and interest on any bonds or any
other purposes in section 4, subdivision 3 or 4. The commissioner of revenue may enter
into appropriate agreements with the city to provide for the collection of these taxes by the
state on behalf of the city. These taxes shall be subject to the same interest, penalties, and
enforcement provisions as the taxes imposed under Minnesota Statutes, chapter 297A.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
September 30, 2024.
new text end
Sec. 4.
Laws 1986, chapter 400, section 44, as amended by Laws 1995, chapter 264, article
2, section 39, and Laws 2009, chapter 88, article 4, section 13, is amended to read:
Sec. 44. DOWNTOWN TAXING AREA.
If a bill is enacted into law in the 1986 legislative session which authorizes the city of
Minneapolis to issue bonds and expend certain funds including taxes to finance the
acquisition and betterment of a convention center and related facilities, which authorizes
certain taxes to be levied in a downtown taxing area, then, notwithstanding the provisions
of that law "downtown taxing area" shall mean the geographic area bounded by the portion
of the Mississippi River between I-35W and Washington Avenue, the portion of Washington
Avenue between the river and I-35W, the portion of I-35W between Washington Avenue
and deleted text begin 8th Streetdeleted text end new text begin Portland Avenuenew text end South, the portion of 8th Street South between I-35W and
Portland Avenue South, the portion of Portland Avenue South between 8th Street South
and I-94, the portion of I-94 from the intersection of Portland Avenue South to the
intersection of I-94 and deleted text begin the Burlington Northern Railroad tracksdeleted text end new text begin Plymouth Avenue Northnew text end ,
the portion of deleted text begin the Burlington Northern Railroad tracks from I-94deleted text end new text begin Plymouth Avenue North
to the Mississippi River. From Plymouth Avenue North and the Mississippi River southnew text end to
Main Street and including Nicollet Island, and the portion of Main Street to Hennepin
Avenue and the portion of Hennepin Avenue between Main Street and 2nd Street S.E., and
the portion of 2nd Street S.E. between Main Street and Bank Street, and the portion of Bank
Street between 2nd Street S.E. and University Avenue S.E., and the portion of University
Avenue S.E. between Bank Street and I-35W, and by I-35W from University Avenue S.E.,
to the river. The downtown taxing area excludes the area bounded on the south and west
by Oak Grove Street, on the east by Spruce Place, and on the north by West 15th Street.
The downtown taxing area also excludes any property located in a zone that is contained
in chapter 546 of the Minneapolis Zoning Code of Ordinances on which a restaurant with
a wine license is operated.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
September 30, 2024.
new text end
ARTICLE 8
PUBLIC FINANCE
Section 1.
Minnesota Statutes 2022, section 123B.71, subdivision 8, is amended to read:
Subd. 8.
Review and comment.
A school district, a special education cooperative, or
a cooperative unit of government, as defined in section 123A.24, subdivision 2, must not
deleted text begin initiatedeleted text end new text begin enter intonew text end an installment contract for purchase or a lease agreement, hold a referendum
for bonds, nor solicit bids for new construction, expansion, or remodeling of an educational
facility that requires an expenditure in excess of $500,000 per school site if it has a capital
loan outstanding, or $2,000,000 per school site if it does not have a capital loan outstanding,
prior to review and comment by the commissioner. deleted text begin A facility addition, maintenance project,
or remodeling projectdeleted text end new text begin New construction, expansion, or remodeling of an educational facilitynew text end
funded only with general education revenue, lease levy proceedsnew text begin from an additional capital
expenditure levy under section 126C.40, subdivision 1new text end , capital facilities bond proceeds, or
long-term facilities maintenance revenue is exempt from this provision. A capital project
under section 123B.63 addressing only technology is exempt from this provision if the
district submits a school board resolution stating that funds approved by the voters will be
used only as authorized in section 126C.10, subdivision 14. A school board shall not separate
portions of a single project into components to avoid the requirements of this subdivision.
Sec. 2.
Minnesota Statutes 2023 Supplement, section 123B.71, subdivision 12, is amended
to read:
Subd. 12.
Publication.
(a) At least 48 days but not more than deleted text begin 60deleted text end new text begin 88new text end days before a
referendum for bondsnew text begin under chapter 475new text end or solicitation of bids for a project that has received
a positive or unfavorable review and comment under section 123B.70, the school board
shall publish a summary of the commissioner's review and comment of that project in the
legal newspaper of the district. The school board must hold a public meeting to discuss the
commissioner's review and comment before deleted text begin thedeleted text end new text begin such anew text end referendum for bonds. Supplementary
information shall be available to the public.new text begin Where no such referendum for bonds is required,
the publication and public meeting requirements of this subdivision shall not apply.
new text end
(b) The publication requirement in paragraph (a) does not apply to alternative facilities
projects approved under section 123B.595.
Sec. 3.
Minnesota Statutes 2023 Supplement, section 126C.40, subdivision 6, is amended
to read:
Subd. 6.
Lease purchase; installment buys.
(a) Upon application to, and approval by,
the commissioner in accordance with the procedures and limits in subdivision 1, paragraphs
(a) and (b), a district, as defined in this subdivision, may:
(1) purchase real or personal property under an installment contract or may lease real
or personal property with an option to purchase under a lease purchase agreement, by which
installment contract or lease purchase agreement title is kept by the seller or vendor or
assigned to a third party as security for the purchase price, including interest, if any; and
(2) annually levy the amounts necessary to pay the district's obligations under the
installment contract or lease purchase agreement.
(b) The obligation created by the installment contract or the lease purchase agreement
must not be included in the calculation of net debt for purposes of section 475.53, and does
not constitute debt under other law. An election is not required in connection with the
execution of the installment contract or the lease purchase agreement.
(c) The proceeds of the levy authorized by this subdivision must not be used to acquire
a facility to be primarily used for athletic or school administration purposes.
(d) For the purposes of this subdivision, "district" means:
(1) Special School District No. 1, Minneapolis, Independent School District No. 625,
St. Paul, Independent School District No. 709, Duluth, or Independent School District No.
535, Rochester, if the district's desegregation plan has been determined by the commissioner
to be in compliance with Department of Education rules relating to equality of educational
opportunity and where the acquisition of property under this subdivision is determined by
the commissioner to contribute to the implementation of the desegregation plan; or
(2) other districts eligible for revenue under section 124D.862 if the facility acquired
under this subdivision is to be primarily used for a joint program for interdistrict
desegregation and the commissioner determines that the joint programs are being undertaken
to implement the districts' desegregation plan.
(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease
or rent a district-owned building to itself does not apply to levies otherwise authorized by
this subdivision.
(f) For the purposes of this subdivision, any references in subdivision 1 to building or
land shall include personal property.
(g) Projects funded under this subdivisionnew text begin that require an expenditure in excess of
$500,000 per school site if the school district has a capital loan outstanding, or $2,000,000
per school site if the school district does not have a capital loan outstanding,new text end are subject to
review and comment under section 123B.71, subdivision 8, in the same manner as other
school construction projects.
Sec. 4.
Minnesota Statutes 2022, section 446A.086, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) As used in this section, the following terms have the
meanings given.
(b) "Authority" means the Minnesota Public Facilities Authority.
(c) "Commissioner" means the commissioner of management and budget.
(d) "Debt obligation" means:
(1) a general obligation bond or note issued by a county, a bond or note to which the
general obligation of a county is pledged under section 469.034, subdivision 2, or a bond
or note payable from a county lease obligation under section 641.24, to provide funds for
the construction of:
(i) jails;
(ii) correctional facilities;
(iii) law enforcement facilities;
new text begin
(iv) a court house or justice center, if connected to a jail, correctional facility, or other
law enforcement facility;
new text end
deleted text begin (iv)deleted text end new text begin (v)new text end social services and human services facilities;
deleted text begin (v)deleted text end new text begin (vi)new text end solid waste facilities; or
deleted text begin (vi)deleted text end new text begin (vii)new text end qualified housing development projects as defined in section 469.034,
subdivision 2; or
(2) a general obligation bond or note issued by a governmental unit to provide funds for
the construction, improvement, or rehabilitation of:
(i) wastewater facilities;
(ii) drinking water facilities;
(iii) stormwater facilities; or
(iv) any publicly owned building or infrastructure improvement that has received partial
funding from grants awarded by the commissioner of employment and economic development
related to redevelopment, contaminated site cleanup, bioscience, small cities development
programs, and rural business infrastructure programs, for which bonds are issued by the
authority under section 446A.087.
(e) "Governmental unit" means a county or a statutory or home rule charter city.
Sec. 5.
Minnesota Statutes 2022, section 469.104, is amended to read:
469.104 SECTIONS THAT APPLY IF FEDERAL LIMIT APPLIES.
Sections 474A.01 to 474A.21 apply to obligations issued under sections 469.090 to
469.108 that are deleted text begin limiteddeleted text end new text begin requirednew text end by federal tax law as defined in section 474A.02,
subdivision 8new text begin , to obtain an allocation of volume capnew text end .
Sec. 6.
Minnesota Statutes 2022, section 474A.091, subdivision 2, is amended to read:
Subd. 2.
Application for residential rental projects.
(a) Issuers may apply for an
allocation for residential rental bonds under this section by submitting to the department an
application on forms provided by the department accompanied by:
(1) a preliminary resolution;
(2) a statement of bond counsel that the proposed issue of obligations requires an
allocation under this chapter and the Internal Revenue Code;
(3) an application deposit in the amount of two percent of the requested allocation;
(4) a sworn statement from the applicant identifying the project as a preservation project,
30 percent AMI residential rental project, 50 percent AMI residential rental project, 100
percent LIHTC project, 20 percent LIHTC project, or any other residential rental project;
and
(5) a certification from the applicant or its accountant stating that the requested allocation
does not exceed the aggregate bond limitation.
The issuer must pay the application deposit to the Department of Management and Budget.
An entitlement issuer may not apply for an allocation for residential rental project bonds
under this section unless it has either permanently issued bonds equal to the amount of its
entitlement allocation for the current year plus any amount carried forward from previous
years or returned for reallocation all of its unused entitlement allocation. For purposes of
this subdivision, its entitlement allocation includes an amount obtained under section
474A.04, subdivision 6.
(b) An issuer that receives an allocation under this subdivision must permanently issue
obligations equal to all or a portion of the allocation received on or beforenew text begin the earlier of:
(1)new text end 180 days of the allocationnew text begin ; or (2) the last business day of Decembernew text end . If an issuer that
receives an allocation under this subdivision does not permanently issue obligations equal
to all or a portion of the allocation received within the time period provided in this paragraph
or returns the allocation to the commissioner, the amount of the allocation is canceled and
returned for reallocation through the unified pool.
(c) The Minnesota Housing Finance Agency may apply for and receive an allocation
under this section without submitting an application deposit.
Sec. 7.
Minnesota Statutes 2022, section 474A.091, subdivision 2a, is amended to read:
Subd. 2a.
Application for all other types of qualified bonds.
(a) Issuers may apply
for an allocation for all types of qualified bonds other than residential rental bonds under
this section by submitting to the department an application on forms provided by the
department accompanied by:
(1) a preliminary resolution;
(2) a statement of bond counsel that the proposed issue of obligations requires an
allocation under this chapter and the Internal Revenue Code;
(3) the type of qualified bonds to be issued;
(4) an application deposit in the amount of two percent of the requested allocation; and
(5) a public purpose scoring worksheet for manufacturing and enterprise zone
applications.
The issuer must pay the application deposit to the Department of Management and Budget.
An entitlement issuer may not apply for an allocation for public facility bonds or mortgage
bonds under this section unless it has either permanently issued bonds equal to the amount
of its entitlement allocation for the current year plus any amount carried forward from
previous years or returned for reallocation all of its unused entitlement allocation. For
purposes of this subdivision, an entitlement allocation includes an amount obtained under
section 474A.04, subdivision 6.
(b) An issuer that receives an allocation under this subdivision must permanently issue
obligations equal to all or a portion of the allocation received on or beforenew text begin the earlier of:
(1)new text end 120 days of the allocationnew text begin ; or (2) the last business day of Decembernew text end . If an issuer that
receives an allocation under this subdivision does not permanently issue obligations equal
to all or a portion of the allocation received within the time period provided in this paragraph
or returns the allocation to the commissioner, the amount of the allocation is canceled and
returned for reallocation through the unified pool.
(c) Notwithstanding the restrictions imposed on entitlement issuers under this subdivision,
the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds
under this section prior to the first Monday in October, but may be awarded allocations for
mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota
Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota
Rural Finance Authority may apply for and receive an allocation under this section without
submitting an application deposit.
ARTICLE 9
MISCELLANEOUS
Section 1.
Minnesota Statutes 2022, section 270C.21, is amended to read:
270C.21 TAXPAYER ASSISTANCE GRANTSnew text begin ; TAX CREDIT OUTREACH
GRANTSnew text end .
Subdivision 1.
Taxpayer assistance.
When the commissioner awards grants deleted text begin to eligible
organizations to coordinate, facilitate, encourage, and aid in the provision of taxpayer
assistance servicesdeleted text end new text begin under this sectionnew text end , the commissioner must provide public notice of the
grants in a timely manner so that the grant process is completed and grants are awarded by
October 1, in order for recipient deleted text begin eligibledeleted text end organizations to adequately plan expenditures for
the filing season. At the time the commissioner provides public notice, the commissioner
must also notify deleted text begin eligibledeleted text end organizations that received grants in the previous biennium.new text begin Amounts
appropriated for grants under this section are not subject to retention of administrative costs
under section 16B.98, subdivision 14.
new text end
Subd. 2.
deleted text begin Eligible organizationdeleted text end new text begin Definitionsnew text end .
deleted text begin
"Eligible organization" means an organization
that meets the definition of eligible organization provided in section 7526A(e)(2)(B) of the
Internal Revenue Code.
deleted text end
new text begin
(a) For the purposes of this section, the following terms have the meanings given.
new text end
new text begin
(b) "Eligible credit" means a credit, refund, or other tax preference targeting low-income
taxpayers, including but not limited to the credits under sections 290.0661, 290.0671,
290.0674, and 290.0693, and chapter 290A.
new text end
new text begin
(c) "Tax outreach organization" means a nonprofit organization or federally recognized
Indian Tribe with experience serving demographic groups or geographic regions that have
historically had low rates of participation in eligible credits.
new text end
new text begin
(d) "Taxpayer assistance services" means accounting and tax preparation services
provided by volunteers to low-income, elderly, and disadvantaged Minnesota residents to
help them file federal and state income tax returns and Minnesota property tax refund claims
and to provide personal representation before the Department of Revenue and Internal
Revenue Service.
new text end
new text begin
(e) "Volunteer taxpayer assistance organization" means an eligible organization qualifying
under section 7526A(e)(2)(B) of the Internal Revenue Code of 1986.
new text end
new text begin Subd. 3. new text end
new text begin Taxpayer assistance grants. new text end
new text begin
The commissioner must regularly make grants
to one or more volunteer taxpayer assistance organizations to coordinate, facilitate, encourage,
and aid in the provision of taxpayer assistance services.
new text end
new text begin Subd. 4. new text end
new text begin Tax credit outreach grants. new text end
new text begin
The commissioner must regularly make one or
more grants to tax outreach organizations and volunteer assistance organizations. Grants
provided under this subdivision must be used to:
new text end
new text begin
(1) publicize and promote the availability of eligible credits to taxpayers likely to be
eligible for those credits; or
new text end
new text begin
(2) provide taxpayer assistance services.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2023 Supplement, section 297H.13, subdivision 2, is amended
to read:
Subd. 2.
Allocation of revenues.
(a) Of the amounts remitted under this chapter, 70
percent must be credited to the environmental fund established in section 16A.531,
subdivision 1.
(b) In addition to the amounts credited to the environmental fund in paragraph (a), deleted text begin in
fiscal year 2024 and later,deleted text end three percent of the amounts remitted under this chapter shall be
deposited into the resource management account in the environmental fund.new text begin For fiscal year
2025 only, an additional $1,821,000 must be deposited in the resource management account
in the environmental fund.
new text end
(c) The remainder must be deposited into the general fund.
(d) deleted text begin Beginning in fiscal year 2024 and annually thereafter,deleted text end The money deposited in the
resource management account in the environmental fund under paragraph (b) is appropriated
to the commissioner of the Pollution Control Agency for distribution to counties under
section 115A.557, subdivision 2, paragraph (a), clauses (1) to (7) and (9) to (11).new text begin Amounts
appropriated for distribution under this section are not subject to retention of administrative
costs under section 16B.98, subdivision 14.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2024.
new text end
Sec. 3.
new text begin
[428A.30] DEFINITIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Scope. new text end
new text begin
For purposes of sections 428A.30 to 428A.34, the terms defined
in this section have the meanings given them, unless the context indicates otherwise.
new text end
new text begin Subd. 2. new text end
new text begin City. new text end
new text begin
"City" means a statutory or home rule charter city.
new text end
new text begin Subd. 3. new text end
new text begin District. new text end
new text begin
"District" means a land-value taxation district established under section
428A.31.
new text end
new text begin Subd. 4. new text end
new text begin Ordinance. new text end
new text begin
"Ordinance" means the ordinance establishing a land-value taxation
district under section 428A.31.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2025.
new text end
Sec. 4.
new text begin
[428A.31] ESTABLISHMENT OF LAND-VALUE TAXATION DISTRICT.
new text end
new text begin Subdivision 1. new text end
new text begin Ordinance. new text end
new text begin
(a) The governing body of a city may adopt an ordinance
establishing a land-value taxation district. The ordinance must be adopted by May 1 of the
calendar year prior to the taxes payable year in which the district would take effect. The
ordinance must describe:
new text end
new text begin
(1) the parcels of property constituting the district, either by specific identification of
each parcel, or by defining a geographic area or areas within the city, and then within that
area or those areas, identifying the specific types of property, as defined under section
273.13, to be included in the district; and
new text end
new text begin
(2) the procedure for reallocating the collective property tax of all parcels within the
district.
new text end
new text begin
(b) In addition, the ordinance must provide for an evaluation of the economic effects of
the district, including the impact on redevelopment of and investment in the district, within
a specified period of time, but not less than 15 years after the district becomes effective.
new text end
new text begin Subd. 2. new text end
new text begin Hearing; notice. new text end
new text begin
Before adopting an ordinance, the city must hold a public
hearing on the question. Notice of the hearing must include the time and place of the hearing,
a description of the parcels to be included in the district, a description of the procedure for
reallocating the tax burden among the parcels, and the duration of the district. Each person
owning property in the proposed district must be given the opportunity to be heard at the
hearing. Notice of the hearing must be published on the city's website and in at least two
issues of the official newspaper of the city. The two publications must be two weeks apart
and the hearing must be held at least three days after the last publication. Not less than ten
days before the hearing, notice must be mailed to the owner of each parcel proposed to be
included in the district. For the purpose of the mailed notice, owners are those shown on
the records of the county auditor. Other records may be used to supply the necessary
information. At the public hearing, a person affected by the proposed district may testify
on any issues relevant to the proposed district. The hearing may be adjourned from time to
time and the ordinance establishing the district may be adopted at any time within six months
after the date of the conclusion of the hearing by a vote of the majority of the governing
body of the city. Within 30 days after adoption of the ordinance, the governing body shall
send a copy of the ordinance to the commissioner of revenue.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2025.
new text end
Sec. 5.
new text begin
[428A.32] RESTRICTIONS ON TAX REALLOCATION PROCEDURE.
new text end
new text begin
A tax reallocation procedure under section 428A.31, subdivision 1, paragraph (a), clause
(2), must distribute taxes on taxable properties in the district by applying uniform rates to
one or more of the following tax bases:
new text end
new text begin
(1) net tax capacity, as defined under section 273.13, subdivision 21b;
new text end
new text begin
(2) referendum market value, as defined under section 126C.01, subdivision 3;
new text end
new text begin
(3) a tax base consisting of each property's estimated market value excluding the market
value attributable to improvements; or
new text end
new text begin
(4) a tax base consisting of each property's estimated market value excluding the market
value attributable to improvements made after a date specified in the ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2025.
new text end
Sec. 6.
new text begin
[428A.33] TAXATION WITHIN DISTRICT.
new text end
new text begin Subdivision 1. new text end
new text begin Initial taxation within district. new text end
new text begin
For each property taxes payable year,
the city must compile the total property taxes imposed upon all properties within the district
for each taxing jurisdiction after final property tax statements are issued under section
276.04. For the purposes of this section, the areawide taxes under chapters 276A and 473F,
and the state general levy under section 275.025, are considered to be taxing jurisdictions.
new text end
new text begin Subd. 2. new text end
new text begin Final taxation within district. new text end
new text begin
The city must allocate the tax, as determined
under subdivision 1, among all properties in the district according to the terms of the
ordinance, such that the entire amount of tax payable to each taxing jurisdiction under
subdivision 1 is allocated among the properties constituting the district. The city must report
the revised property tax amounts for each parcel of property to the county treasurer by April
30 of the year the tax is payable. The city must provide for revised property tax statements
to be mailed to all properties within the district by April 30 of the year the tax is payable.
Taxpayers must make payments according to the dates specified in section 279.01 as if the
property tax statements were mailed 21 days prior to May 15 of the year the taxes are
payable.
new text end
new text begin Subd. 3. new text end
new text begin Report to commissioner of revenue. new text end
new text begin
By September 1 of each year, the county
treasurer must report the initial and final distribution of the net tax for each parcel of property
in the district to the commissioner of revenue on a form prescribed by the commissioner of
revenue.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2025.
new text end
Sec. 7.
new text begin
[428A.34] APPEAL OF LAND VALUE.
new text end
new text begin
The owner of any property included in a land-value taxation district under section
428A.31 may appeal the valuation attributable to land separately from the valuation
attributable to improvements upon the land under sections 274.01 and 274.13 or chapter
271.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2025.
new text end
Sec. 8. new text begin AID TO CITIES FOR EMERALD ASH BORER FINANCIAL ASSISTANCE.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
For the purposes of this section, the following terms have
the meanings given:
new text end
new text begin
(1) "eligible costs" means costs incurred in 2020 or later for treating or removing a tree
on residential or agricultural homestead property that has been found to be infested by the
emerald ash borer and has been required by state law or by municipal ordinance to be treated
or removed;
new text end
new text begin
(2) "eligible homeowner" means a homeowner who experienced eligible costs related
to a tree on the homeowner's property; and
new text end
new text begin
(3) "eligible local government" means:
new text end
new text begin
(i) a town with a population of at least 10,000;
new text end
new text begin
(ii) a statutory or home rule charter city; or
new text end
new text begin
(iii) "Minnesota Tribal governments," as defined in Minnesota Statutes, section 10.65,
subdivision 2, clause (4).
new text end
new text begin Subd. 2. new text end
new text begin Aid program established; payment. new text end
new text begin
The commissioner of revenue must
distribute aid to eligible local governments, as provided in this section. The commissioner
must certify the aid amount to be paid in 2025 to each eligible local government by January
31, 2025. The commissioner must make the full 2025 payment to each eligible local
government by February 15, 2025. This program is not subject to retention of administrative
costs under Minnesota Statutes, section 16B.98, subdivision 14.
new text end
new text begin Subd. 3. new text end
new text begin Amount of aid. new text end
new text begin
(a) The commissioner of revenue must establish a process to
allocate the amount of available aid to eligible local governments. The process must be an
open application process for a merit-based competitive grant program. The grant program
established under this subdivision must prioritize distributing aid to eligible local
governments based on:
new text end
new text begin
(1) the rate of emerald ash borer infestations on residential properties;
new text end
new text begin
(2) the ability of the local government's residents to pay for eligible costs; and
new text end
new text begin
(3) the population of the eligible local government.
new text end
new text begin
(b) The commissioner of revenue must consult with the commissioners of agriculture
and natural resources when establishing the process required under this subdivision.
new text end
new text begin Subd. 4. new text end
new text begin Eligible uses. new text end
new text begin
An eligible government must use aid received under this section
to reimburse eligible homeowners with incomes below 200 percent of the official federal
poverty guideline for their eligible costs.
new text end
new text begin Subd. 5. new text end
new text begin Appropriation. new text end
new text begin
$1,000,000 in fiscal year 2025 is appropriated from the general
fund to the commissioner of revenue for aid under this section. This is a onetime
appropriation. The Department of Revenue may retain up to three percent of this amount
for costs incurred in administering the program.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 9. new text begin APPROPRIATION; ANOKA COUNTY SOIL AND WATER
CONSERVATION DISTRICT; GRANT.
new text end
new text begin
$50,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of revenue for a grant to the Anoka County Soil And Water Conservation District. This is
a onetime appropriation. The grant must be paid by July 15, 2024. The grant under this
section is not subject to retention of administrative costs under Minnesota Statutes, section
16B.98, subdivision 14.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 10. new text begin APPROPRIATION; BROWERVILLE PUBLIC SCHOOLS.
new text end
new text begin
$580,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of revenue for a grant to Browerville public schools, Independent School District No. 787,
to remediate the effects of a school building roof collapse that occurred in 2023. The grant
recipient must use the money appropriated under this section for materials and supplies
used in and equipment incorporated into renovations to the prekindergarten through grade
12 school building, and construction of a new gymnasium, classrooms, locker rooms, a
wrestling and weight room, offices, and a stage. The grant must be paid by July 15, 2024.
This appropriation is onetime. The grant under this section is not subject to retention of
administrative costs under Minnesota Statutes, section 16B.98, subdivision 14.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2024.
new text end
Sec. 11. new text begin APPROPRIATION; CITY OF SOUTH ST. PAUL; GRANT.
new text end
new text begin
(a) $100,000 in fiscal year 2024 is appropriated from the general fund to the commissioner
of revenue for a grant to the city of South St. Paul. This is a onetime appropriation. The
grant must be paid by June 30, 2024. The grant under this section is not subject to retention
of administrative costs under Minnesota Statutes, section 16B.98, subdivision 14.
new text end
new text begin
(b) The grant under this section must be used by the city of South St. Paul to pay for
planning and development costs within the city.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 12. new text begin APPROPRIATION; TAX CREDIT OUTREACH GRANTS; TAXPAYER
ASSISTANCE GRANTS.
new text end
new text begin
(a) $1,000,000 in fiscal year 2025 is appropriated from the general fund to the
commissioner of revenue for tax credit outreach grants under Minnesota Statutes, section
270C.21, subdivision 4. This appropriation is in addition to the amount appropriated in
Laws 2023, chapter 64, article 7, section 30. The base for this program is $1,044,000 in
fiscal year 2026 and $1,045,000 in fiscal year 2027.
new text end
new text begin
(b) $750,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of revenue for taxpayer assistance grants under Minnesota Statutes, section 270C.21,
subdivision 3. This appropriation is in addition to the amount appropriated for taxpayer
assistance in Laws 2023, chapter 62, article 1, section 14, subdivision 2.
new text end
ARTICLE 10
DEPARTMENT OF REVENUE; INDIVIDUAL INCOME AND CORPORATE
FRANCHISE TAXES
Section 1.
Minnesota Statutes 2022, section 116U.27, subdivision 2, is amended to read:
Subd. 2.
Credit allowed.
A taxpayer is eligible for a credit up to 25 percent of eligible
production costs paid in deleted text begin a taxable yeardeleted text end new text begin any consecutive 12-month period as described in
subdivision 1, paragraph (h)new text end . A taxpayer may only claim a credit if the taxpayer was issued
a credit certificate under subdivision 4.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2022.
new text end
Sec. 2.
Minnesota Statutes 2023 Supplement, section 290.01, subdivision 19, is amended
to read:
Subd. 19.
Net income.
(a) For a trust or estate taxable under section 290.03, and a
corporation taxable under section 290.02, the term "net income" means the federal taxable
income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through
the date named in this subdivision, incorporating the federal effective dates of changes to
the Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in sections 290.0131 to 290.0136.
(b) For an individual, the term "net income" means federal adjusted gross income with
the modifications provided in sections 290.0131, 290.0132, and 290.0135 to 290.0137.
(c) In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:
(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;
(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue
Code must be applied by allowing a deduction for capital gain dividends and exempt-interest
dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code;
and
(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.
(d) The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
(e) The net income of a designated settlement fund as defined in section 468B(d) of the
Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal
Revenue Code.
(f) The Internal Revenue Code of 1986, as amended through May 1, 2023, applies for
taxable years beginning after December 31, 1996.
(g) Except as otherwise provided, references to the Internal Revenue Code in this
subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of
determining net income for the applicable year.
(h) In the case of a partnership electing to file a composite return under section 289A.08,
subdivision 7, "net income" means the partner's share of federal adjusted gross income from
the partnership modified by the additions provided in section 290.0131, subdivisions 8 to
10, 16, and 17, and the subtractions provided in: (1) section 290.0132, subdivisions 9, 27,
deleted text begin anddeleted text end 28,new text begin and 31,new text end to the extent the amount is assignable or allocable to Minnesota under section
290.17; and (2) section 290.0132, subdivision 14. The subtraction allowed under section
290.0132, subdivision 9, is only allowed on the composite tax computation to the extent
the electing partner would have been allowed the subtraction.
(i) In the case of a qualifying entity electing to pay the pass-through entity tax under
section 289A.08, subdivision 7a, "net income" means the qualifying owner's share of federal
adjusted gross income from the qualifying entity modified by the additions provided in
section 290.0131, subdivisions 5, 8 to 10, 16, and 17, and the subtractions provided in: (1)
section 290.0132, subdivisions 3, 9, 27, deleted text begin anddeleted text end 28,new text begin and 31,new text end to the extent the amount is assignable
or allocable to Minnesota under section 290.17; and (2) section 290.0132, subdivision 14.
The subtraction allowed under section 290.0132, subdivision 9, is only allowed on the
pass-through entity tax computation to the extent the qualifying owners would have been
allowed the subtraction. deleted text begin The income of both a resident and nonresident qualifying owner
is allocated and assigned to this state as provided for nonresident partners and shareholders
under sections 290.17, 290.191, and 290.20.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2022.
new text end
Sec. 3.
Minnesota Statutes 2023 Supplement, section 290.0132, subdivision 34, is amended
to read:
Subd. 34.
Qualified retirement benefits.
(a) The amount of qualified public pension
income is a subtraction. The subtraction in this section is limited to:
(1) $25,000 for a married taxpayer filing a joint return or surviving spouse; or
(2) $12,500 for all other filers.
(b) For a taxpayer with adjusted gross income above the phaseout threshold, the
subtraction is reduced by ten percent for each $2,000 of adjusted gross income, or fraction
thereof, in excess of the threshold. The phaseout threshold equals:
(1) $100,000 for a married taxpayer filing a joint return or surviving spouse;
(2) $78,000 for a single or head of household taxpayer; or
(3) for a married taxpayer filing a separate return, half the amount for a married taxpayer
filing a joint return.
(c) For the purposes of this section, "qualified public pension income" means any amount
received:
(1) by a former basic member or the survivor of a former basic member, as an annuity
or survivor benefit, from a pension plan governed by chapter 353, 353E, 354, or 354A,
provided that the annuity or benefit is based on service for which the member or survivor
deleted text begin is not also receivingdeleted text end new text begin did not earnnew text end Social Security benefits;
(2) as an annuity or survivor benefit from the legislators plan under chapter 3A, the State
Patrol retirement plan under chapter 352B, or the public employees police and fire plan
under sections 353.63 to 353.666, provided that the annuity or benefit is based on service
for which the member or survivor deleted text begin is not also receivingdeleted text end new text begin did not earnnew text end Social Security benefits;
(3) from any retirement system administered by the federal government that is based on
service for which the recipient or the recipient's survivor deleted text begin is not also receivingdeleted text end new text begin did not earnnew text end
Social Security benefits; or
(4) from a public retirement system of or created by another state or any of its political
subdivisions, or the District of Columbia, if the income tax laws of the other state or district
permit a similar deduction or exemption or a reciprocal deduction or exemption of a
retirement or pension benefit received from a public retirement system of or created by this
state or any political subdivision of this state.
(d) The commissioner must annually adjust the subtraction limits in paragraph (a) and
the phaseout thresholds in paragraph (b), as provided in section 270C.22. The statutory year
is taxable year 2023.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2023 Supplement, section 290.0134, subdivision 20, is amended
to read:
Subd. 20.
Delayed business interest.
(a) For each taxable year an addition is required
under section deleted text begin 290.0131, subdivision 19deleted text end new text begin 290.0133, subdivision 15new text end , the amount of the addition,
less the sum of all amounts subtracted under this paragraph in all prior taxable years, that
does not exceed the limitation on business interest in section 163(j) of the Internal Revenue
Code of 1986, as amended through December 15, 2022, notwithstanding the special rule in
section 163(j)(10) of the Internal Revenue Code, is a subtraction. Any excess is a delayed
business interest carryforward, the entire amount of which must be carried to the earliest
taxable year. No subtraction is allowed under this paragraph for taxable years beginning
after December 31, 2022.
(b) For each of the five taxable years beginning after December 31, 2022, there is allowed
a subtraction equal to one-fifth of the sum of all carryforward amounts that remain after the
expiration of paragraph (a).
(c) Entities that are part of a combined reporting group under the unitary rules of section
290.17, subdivision 4, must compute deductions and additions as required under section
290.34, subdivision 5.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2019.
new text end
Sec. 5.
Minnesota Statutes 2023 Supplement, section 290.0693, subdivision 1, is amended
to read:
Subdivision 1.
Definitions.
(a) For the purposes of this section, the following terms have
the meanings given.
(b) "Dependent" means any individual who is considered a dependent under sections
151 and 152 of the Internal Revenue Codenew text begin and was claimed by the taxpayer as a dependentnew text end .
(c) "Disability" has the meaning given in section 290A.03, subdivision 10.
(d) "Exemption amount" means the exemption amount under section 290.0121,
subdivision 1, paragraph (b).
(e) "Gross rent" means rent paid for the right of occupancy, at arm's length, of a
homestead, exclusive of charges for any medical services furnished by the landlord as a
part of the rental agreement, whether expressly set out in the rental agreement or not. The
gross rent of a resident of a nursing home or intermediate care facility is $600 per month.
The gross rent of a resident of an adult foster care home is $930 per month. The commissioner
shall annually adjust the amounts in this paragraph as provided in section 270C.22. The
statutory year is 2023. If the landlord and tenant have not dealt with each other at arm's
length and the commissioner determines that the gross rent charged was excessive, the
commissioner may adjust the gross rent to a reasonable amount for purposes of this section.
(f) "Homestead" has the meaning given in section 290A.03, subdivision 6.
(g) "Household" has the meaning given in section 290A.03, subdivision 4.
(h) "Household income" means all income received by all persons of a household in a
taxable year while members of the household, other than income of a dependent.
(i) "Income" means adjusted gross income, minus:
(1) for the taxpayer's first dependent, the exemption amount multiplied by 1.4;
(2) for the taxpayer's second dependent, the exemption amount multiplied by 1.3;
(3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;
(4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;
(5) for the taxpayer's fifth dependent, the exemption amount; and
(6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or
before the close of the taxable year, the exemption amount.
(j) "Rent constituting property taxes" means 17 percent of the gross rent actually paid
in cash, or its equivalent, or the portion of rent paid in lieu of property taxes, in any taxable
year by a claimant for the right of occupancy of the claimant's Minnesota homestead in the
taxable year, and which rent constitutes the basis, in the succeeding taxable year of a claim
for a credit under this section by the claimant. If an individual occupies a homestead with
another person or persons not related to the individual as the individual's spouse or as
dependents, and the other person or persons are residing at the homestead under a rental or
lease agreement with the individual, the amount of rent constituting property tax for the
individual equals that portion not covered by the rental agreement.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2023.
new text end
Sec. 6.
Minnesota Statutes 2023 Supplement, section 290.0693, subdivision 6, is amended
to read:
Subd. 6.
Residents of nursing homes, intermediate care facilities, long-term care
facilities, or facilities accepting housing support payments.
(a) A taxpayer must not claim
a credit under this section if the taxpayer is a resident of a nursing home, intermediate care
facility, long-term residential facility, or a facility that accepts housing support payments
whose rent constituting property taxes is paid pursuant to the Supplemental Security Income
program under title XVI of the Social Security Act, the Minnesota supplemental aid program
under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX
of the Social Security Act, or the housing support program under chapter 256I.
(b) If only a portion of the rent constituting property taxes is paid by these programs,
the resident is eligible for a credit, but the credit calculated must be multiplied by a fraction,
the numerator of which is adjusted gross income, deleted text begin reduced by the total amount of income
from the above sources other than vendor payments under the medical assistance programdeleted text end
and the denominator of which is adjusted gross income, plus vendor payments under the
medical assistance program, to determine the allowable credit.
(c) Notwithstanding paragraphs (a) and (b), if the taxpayer was a resident of the nursing
home, intermediate care facility, long-term residential facility, or facility for which the rent
was paid for the claimant by the housing support program for only a portion of the taxable
year covered by the claim, the taxpayer may compute rent constituting property taxes by
disregarding the rent constituting property taxes from the nursing home or facility and may
use only that amount of rent constituting property taxes or property taxes payable relating
to that portion of the year when the taxpayer was not in the facility. The taxpayer's household
income is the income for the entire taxable year covered by the claim.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2023.
new text end
Sec. 7.
Minnesota Statutes 2023 Supplement, section 290.0693, subdivision 8, is amended
to read:
Subd. 8.
One claimant per household.
Only one taxpayer per household per year is
entitled to claim a credit under this section.new text begin In the case of a married couple filing a joint
return, the couple may claim a credit under this section based on the total amount of both
spouses' gross rent.new text end In the case of a married taxpayer filing a separate return, only one spouse
may claim the credit under this section. The credit amount for the spouse that claims the
credit must be calculated based on household income and not solely on the income of the
spouse.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2023.
new text end
Sec. 8.
Minnesota Statutes 2023 Supplement, section 290.0695, subdivision 2, is amended
to read:
Subd. 2.
Credit allowed; limitation; carryover.
(a) An eligible taxpayer is allowed a
credit against tax due under this chapter equal to 50 percent of deleted text begin eligible expenses, not to
exceed $3,000 per mile, multiplied by the number of miles of railroad track owned or leased
within the state by the eligible taxpayer for which the taxpayer madedeleted text end new text begin thenew text end qualified railroad
reconstruction or replacement expenditures deleted text begin as of the close of the taxable year for which the
credit is claimeddeleted text end new text begin made by an eligible taxpayer within this state during the taxable year for
which the credit is claimednew text end .
new text begin
(b) The credit allowed under paragraph (a) for any taxable year must not exceed the
product of:
new text end
new text begin
(1) $3,000, multiplied by;
new text end
new text begin
(2) the number of miles of railroad track owned or leased by the eligible taxpayer within
this state as of the close of the taxable year for which the taxpayer made qualified railroad
reconstruction or replacement expenditures for which the credit is claimed.
new text end
deleted text begin (b)deleted text end new text begin (c)new text end If the amount of the credit determined under this section for any taxable year
exceeds the liability for tax under this chapter, the excess is a credit carryover to each of
the five succeeding taxable years. The entire amount of the excess unused credit for the
taxable year must be carried first to the earliest of the taxable years to which the credit may
be carried and then to each successive year to which the credit may be carried. The amount
of the unused credit that may be added under this paragraph must not exceed the taxpayer's
liability for tax less the credit for the taxable year.
deleted text begin (c)deleted text end new text begin (d)new text end An eligible taxpayer claiming a credit under this section may not also claim the
credit under section 297I.20, subdivision 6, for the same qualified railroad reconstruction
or replacement expenditures.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2022.
new text end
Sec. 9.
Laws 2023, chapter 1, section 22, is amended to read:
Sec. 22. TEMPORARY ADDITIONS AND SUBTRACTIONS; INDIVIDUALS,
ESTATES, AND TRUSTS.
(a) For the purposes of this section:
(1) "subtraction" has the meaning given in Minnesota Statutes, section 290.0132,
subdivision 1, and the rules in that subdivision apply to this section;
(2) "addition" has the meaning given in Minnesota Statutes, section 290.0131, subdivision
1, and the rules in that subdivision apply to this section; and
(3) the definitions in Minnesota Statutes, section 290.01, apply to this section.
(b) The following amounts are subtractions:
(1) the amount of wages used for the calculation of the employee retention credit for
employers affected by qualified disasters, to the extent not deducted from income, under
Public Law 116-94, division Q, section 203, or Public Law 116-260, division EE, section
303;
(2) the amount of wages used for the calculation of the payroll credit for required paid
sick leave, to the extent not deducted from income, under Public Law 116-127, section
7001, as amended by section 9641 of Public Law 117-2;
(3) the amount of wages or expenses used for the calculation of the payroll credit for
required paid family leave, to the extent not deducted from income, under Public Law
116-127, section 7003, as amended by section 9641 of Public Law 117-2;
(4) the amount of wages used for the calculation of the employee retention credit for
employers subject to closure due to COVID-19, to the extent not deducted from income,
under Public Law 116-136, section 2301, as amended by Public Law 116-260, division EE,
section 207, and Public Law 117-2, section 9651; and
(5) the amount required to be added to gross income to claim the credit in section 6432
of the Internal Revenue Code.
(c) The following amounts are additions:
(1) the amount subtracted for qualified tuition expenses under section 222 of the Internal
Revenue Code, as amended by Public Law 116-94, division Q, section 104;
(2) the amount of above the line charitable contributions deducted under section 2204
of Public Law 116-136;
(3) the amount of meal expenses in excess of the 50 percent limitation under section
274(n)(1) of the Internal Revenue Code allowed under subsection (n), paragraph (2),
subparagraph (D), of that section; and
(4) the amount of charitable contributions deducted from federal taxable income by a
trust for taxable year 2020 under Public Law 116-136, section 2205(a).
(d) The commissioner of revenue must apply the subtractions in paragraph (b) and the
additions in paragraph (c), when calculating the following:
(1) the percentage under Minnesota Statutes, section 290.06, subdivision 2c, paragraph
(e);
(2) a taxpayer's alternative minimum taxable income under Minnesota Statutes, section
290.091; and
(3) "income" deleted text begin as defined in Minnesota Statutes, section 289A.08, subdivision 7, paragraph
(j),deleted text end for the purposes of determining the tax for composite filers and the pass-through entity
taxnew text begin , means the partner's share of federal adjusted gross income from the partnership modified
by the additions provided in Minnesota Statutes, section 290.0131, subdivisions 8 to 10,
16, 17, and 19, and the subtractions provided in (i) Minnesota Statutes, section 290.0132,
subdivisions 9, 27, and 28, to the extent the amount is assignable or allocable to Minnesota
under Minnesota Statutes, section 290.17; and (ii) Minnesota Statutes, section 290.0132,
subdivision 14. The subtraction allowed under Minnesota Statutes, section 290.0132,
subdivision 9, is only allowed on the composite tax computation to the extent the electing
partner would have been allowed the subtractionnew text end .
(e) For the purpose of calculating property tax refunds under Minnesota Statutes, chapter
290A, any amounts allowed as a subtraction in paragraph (b) are excluded from "income,"
as defined in Minnesota Statutes, section 290A.03, subdivision 3.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively at the same time the changes
in Laws 2023, chapter 1, section 22, were effective for federal purposes.
new text end
ARTICLE 11
DEPARTMENT OF REVENUE; SALES AND USE TAXES
Section 1.
Minnesota Statutes 2022, section 297A.66, subdivision 3, is amended to read:
Subd. 3.
Marketplace provider liability.
deleted text begin (a)deleted text end A marketplace provider is deemed the
retailer or seller for all retail sales it facilitates, and is subject to audit on the retail sales it
facilitates if it is required to collect sales and use taxes and remit them to the commissioner
under subdivision 2, paragraphs (b) and (c).
deleted text begin
(b) A marketplace provider is not liable for failing to file, collect, and remit sales and
use taxes to the commissioner if the marketplace provider demonstrates that the error was
due to incorrect or insufficient information given to the marketplace provider by the retailer.
This paragraph does not apply if the marketplace provider and the marketplace retailer are
related as defined in subdivision 4, paragraph (b).
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2024
new text end
Sec. 2.
Minnesota Statutes 2022, section 297A.66, is amended by adding a subdivision to
read:
new text begin Subd. 3a. new text end
new text begin Marketplace provider relief. new text end
new text begin
(a) A marketplace provider is relieved of liability
for failure to collect the correct amount of sales or use tax, with respect to sales on behalf
of marketplace sellers, to the extent that the marketplace provider can demonstrate that the
error was due to incorrect information given to the marketplace provider by the marketplace
seller, unless the marketplace provider and the marketplace seller are affiliated persons. To
qualify for the liability relief under this subdivision, a marketplace provider must have
received erroneous information from a marketplace seller that prevented the marketplace
provider from properly determining the correct tax amount owed. A marketplace provider
does not qualify for the liability relief under this subdivision when a marketplace seller
provided information that was correct, but was incomplete or insufficient to make the proper
taxability determination.
new text end
new text begin
(b) If the marketplace provider is relieved of liability under paragraph (a), the marketplace
seller is solely liable for the amount of uncollected tax due.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2024
new text end
ARTICLE 12
DEPARTMENT OF REVENUE; PROPERTY TAXES AND LOCAL GOVERNMENT
AIDS
Section 1.
Minnesota Statutes 2022, section 273.13, subdivision 22, is amended to read:
Subd. 22.
Class 1.
(a) Except as provided in subdivision 23 and in paragraphs (b) and
(c), real estate which is residential and used for homestead purposes is class 1a. In the case
of a duplex or triplex in which one of the units is used for homestead purposes, the entire
property is deemed to be used for homestead purposes. The market value of class 1a property
must be determined based upon the value of the house, garage, and land.
The first $500,000 of market value of class 1a property has a net classification rate of
one percent of its market value; and the market value of class 1a property that exceeds
$500,000 has a classification rate of 1.25 percent of its market value.
(b) Class 1b property includes homestead real estate or homestead manufactured homes
used for the purposes of a homestead by:
(1) any person who is blind as defined in section 256D.35, or the person who is blind
and the spouse of the person who is blind;
(2) any person who is permanently and totally disabled or by the person with a disability
and the spouse of the person with a disability; or
(3) the surviving spouse of a veteran who was permanently and totally disabled
homesteading a property classified under this paragraph for taxes payable in 2008.
Property is classified and assessed under clause (2) only if the government agency or
income-providing source certifies, upon the request of the homestead occupant, that the
homestead occupant satisfies the disability requirements of this paragraph, and that the
property is not eligible for the valuation exclusion under subdivision 34.
Property is classified and assessed under paragraph (b) only if the commissioner of
revenue or the county assessor certifies that the homestead occupant satisfies the requirements
of this paragraph.
Permanently and totally disabled for the purpose of this subdivision means a condition
which is permanent in nature and totally incapacitates the person from working at an
occupation which brings the person an income. The first $50,000 market value of class 1b
property has a net classification rate of .45 percent of its market value. The remaining market
value of class 1b property is classified as class 1anew text begin ,new text end deleted text begin ordeleted text end class 2a property, new text begin or class 4d(2)
new text end whichever is appropriate.
(c) Class 1c property is commercial use real and personal property that abuts public
water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by
the Department of Natural Resources, and is devoted to temporary and seasonal residential
occupancy for recreational purposes but not devoted to commercial purposes for more than
250 days in the year preceding the year of assessment, and that includes a portion used as
a homestead by the owner, which includes a dwelling occupied as a homestead by a
shareholder of a corporation that owns the resort, a partner in a partnership that owns the
resort, or a member of a limited liability company that owns the resort even if the title to
the homestead is held by the corporation, partnership, or limited liability company. For
purposes of this paragraph, property is devoted to a commercial purpose on a specific day
if any portion of the property, excluding the portion used exclusively as a homestead, is
used for residential occupancy and a fee is charged for residential occupancy. Class 1c
property must contain three or more rental units. A "rental unit" is defined as a cabin,
condominium, townhouse, sleeping room, or individual camping site equipped with water
and electrical hookups for recreational vehicles. Class 1c property must provide recreational
activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill
or cross-country ski equipment; provide marina services, launch services, or guide services;
or sell bait and fishing tackle. Any unit in which the right to use the property is transferred
to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies
for class 1c even though it may remain available for rent. A camping pad offered for rent
by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of
the rental agreement, as long as the use of the camping pad does not exceed 250 days. If
the same owner owns two separate parcels that are located in the same township, and one
of those properties is classified as a class 1c property and the other would be eligible to be
classified as a class 1c property if it was used as the homestead of the owner, both properties
will be assessed as a single class 1c property; for purposes of this sentence, properties are
deemed to be owned by the same owner if each of them is owned by a limited liability
company, and both limited liability companies have the same membership. The portion of
the property used as a homestead is class 1a property under paragraph (a). The remainder
of the property is classified as follows: the first $600,000 of market value is tier I, the next
$1,700,000 of market value is tier II, and any remaining market value is tier III. The
classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25
percent. Owners of real and personal property devoted to temporary and seasonal residential
occupancy for recreation purposes in which all or a portion of the property was devoted to
commercial purposes for not more than 250 days in the year preceding the year of assessment
desiring classification as class 1c, must submit a declaration to the assessor designating the
cabins or units occupied for 250 days or less in the year preceding the year of assessment
by January 15 of the assessment year. Those cabins or units and a proportionate share of
the land on which they are located must be designated as class 1c as otherwise provided.
The remainder of the cabins or units and a proportionate share of the land on which they
are located must be designated as class 3a commercial. The owner of property desiring
designation as class 1c property must provide guest registers or other records demonstrating
that the units for which class 1c designation is sought were not occupied for more than 250
days in the year preceding the assessment if so requested. The portion of a property operated
as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5)
other nonresidential facility operated on a commercial basis not directly related to temporary
and seasonal residential occupancy for recreation purposes does not qualify for class 1c.
(d) Class 1d property includes structures that meet all of the following criteria:
(1) the structure is located on property that is classified as agricultural property under
section 273.13, subdivision 23;
(2) the structure is occupied exclusively by seasonal farm workers during the time when
they work on that farm, and the occupants are not charged rent for the privilege of occupying
the property, provided that use of the structure for storage of farm equipment and produce
does not disqualify the property from classification under this paragraph;
(3) the structure meets all applicable health and safety requirements for the appropriate
season; and
(4) the structure is not salable as residential property because it does not comply with
local ordinances relating to location in relation to streets or roads.
The market value of class 1d property has the same classification rates as class 1a property
under paragraph (a).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2025 and thereafter.
new text end
Sec. 2.
Minnesota Statutes 2022, section 375.192, subdivision 2, is amended to read:
Subd. 2.
Procedure, conditions.
Upon written application by the owner of any property,
the county board may grant the reduction or abatement of estimated market valuation or
taxes and of any costs, penalties, or interest on them as the board deems just and equitable
and order the refund in whole or part of any taxes, costs, penalties, or interest which have
been erroneously or unjustly paid. Except as provided in sections 469.1812 to 469.1815,
no reduction or abatement may be granted on the basis of providing an incentive for economic
development or redevelopment. Except as provided in section 375.194, the county board
may consider and grant reductions or abatements on applications only as they relate to taxes
payable in the current year and the two prior years; provided that reductions or abatements
for the two prior years shall be considered or granted only for (i) clerical errors, or (ii) when
the taxpayer fails to file for a reduction or an adjustment due to hardship, as determined by
the county board. The application must include the Social Security number new text begin or individual
taxpayer identification number new text end of the applicant. The Social Security number deleted text begin isdeleted text end new text begin and individual
taxpayer identification number arenew text end private data on individuals as defined by section 13.02,
subdivision 12. All applications must be approved by the county assessor, or, if the property
is located in a city of the first or second class having a city assessor, by the city assessor,
and by the county auditor before consideration by the county board, except that the part of
the application which is for the abatement of penalty or interest must be approved by the
county treasurer and county auditor. Approval by the county or city assessor is not required
for abatements of penalty or interest. No reduction, abatement, or refund of any special
assessments made or levied by any municipality for local improvements shall be made
unless it is also approved by the board of review or similar taxing authority of the
municipality. On any reduction or abatement when the reduction of taxes, costs, penalties,
and interest exceed $10,000, the county board shall give notice within 20 days to the school
board and the municipality in which the property is located. The notice must describe the
property involved, the actual amount of the reduction being sought, and the reason for the
reduction.
An appeal may not be taken to the Tax Court from any order of the county board made
in the exercise of the discretionary authority granted in this section.
The county auditor shall notify the commissioner of revenue of all abatements resulting
from the erroneous classification of real property, for tax purposes, as nonhomestead property.
For the abatements relating to the current year's tax processed through June 30, the auditor
shall notify the commissioner on or before July 31 of that same year of all abatement
applications granted. For the abatements relating to the current year's tax processed after
June 30 through the balance of the year, the auditor shall notify the commissioner on or
before the following January 31 of all applications granted. The county auditor shall submit
a form containing the Social Security number new text begin or individual taxpayer identification number
new text end of the applicant and such other information the commissioner prescribes.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for abatement applications
filed in 2023 and thereafter.
new text end
Sec. 3.
Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 6, is amended
to read:
Subd. 6.
Administration.
(a) The commissioner of revenue must compute the amount
of aid payable to each tier I city and county under this section. deleted text begin By August 1 of each year,
the commissioner must certify the distribution factors of each tier I city and county to be
used in the following year. The commissioner must pay local affordable housing aid annually
at the times provided in section 477A.015, distributing the amounts available on the
immediately preceding June 1 under the accounts established in section 477A.37, subdivisions
2 and 3.deleted text end new text begin On or before September 1 of each year, the commissioner of revenue must certify
the amount to be paid to each tier I city and county in that year. By July 15, 2024, and
annually thereafter, the commissioner of management and budget must certify to the
commissioner of revenue the balances in the accounts established in section 477A.37,
subdivisions 2 and 3, as of the immediately preceding June 1. The commissioner of revenue
must pay the full amount of aid on October 1 annually.
new text end
(b) Beginning in 2025, tier I cities and counties shall submit a report annually, no later
than December 1 of each year, to the Minnesota Housing Finance Agency. The report must
include documentation of the location of any unspent funds distributed under this section
and of qualifying projects completed or planned with funds under this section. If a tier I
city or county fails to submit a report, if a tier I city or county fails to spend funds within
the timeline imposed under subdivision 5, paragraph (b), or if a tier I city or county uses
funds for a project that does not qualify under this section, the Minnesota Housing Finance
Agency shall notify the Department of Revenue and the cities and counties that must repay
funds under paragraph (c) by February 15 of the following year.
(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, a
tier I city or county must pay to the Minnesota Housing Finance Agency funds the city or
county received under this section if the city or county:
(1) fails to spend the funds within the time allowed under subdivision 5, paragraph (b);
(2) spends the funds on anything other than a qualifying project; or
(3) fails to submit a report documenting use of the funds.
(d) The commissioner of revenue must stop distributing funds to a tier I city or county
that, in three consecutive years, the Minnesota Housing Finance Agency has reported,
pursuant to paragraph (b), to have failed to use funds, misused funds, or failed to report on
its use of funds.
(e) The commissioner may resume distributing funds to a tier I city or county to which
the commissioner has stopped payments in the year following the August 1 after the
Minnesota Housing Finance Agency certifies that the city or county has submitted
documentation of plans for a qualifying project.
(f) By June 1, any funds paid to the Minnesota Housing Finance Agency under paragraph
(c) must be deposited in the housing development fund. Funds deposited under this paragraph
are appropriated to the commissioner of the Minnesota Housing Finance Agency for use
on the family homeless prevention and assistance program under section 462A.204, the
economic development and housing challenge program under section 462A.33, and the
workforce and affordable homeownership development program under section 462A.38.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2024 and thereafter.
new text end
ARTICLE 13
DEPARTMENT OF REVENUE; MISCELLANEOUS
Section 1.
Minnesota Statutes 2022, section 270C.445, subdivision 6, is amended to read:
Subd. 6.
Enforcement; administrative order; penalties; cease and desist.
(a) The
commissioner may impose an administrative penalty of not more than $1,000 per violation
of subdivision 3 or 5, or section 270C.4451, provided that a penalty may not be imposed
for any conduct for which a tax preparer penalty is imposed under section 289A.60,
subdivision 13. The commissioner may terminate a tax preparer's authority to transmit
returns electronically to the state, if the commissioner determines the tax preparer engaged
in a pattern and practice of violating this section. Imposition of a penalty under this paragraph
is subject to the contested case procedure under chapter 14. The commissioner shall collect
the penalty in the same manner as the income tax. There is no right to make a claim for
refund under section 289A.50 of the penalty imposed under this paragraph. Penalties imposed
under this paragraph are public data.
(b) In addition to the penalty under paragraph (a), if the commissioner determines that
a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may
issue an administrative order to the tax preparer requiring the tax preparer to cease and
desist from committing the violation. The administrative order may include an administrative
penalty provided in paragraph (a).
(c) If the commissioner issues an administrative order under paragraph (b), the
commissioner must send the order to the tax preparer addressed to the last known address
of the tax preparer.
(d) A cease and desist order under paragraph (b) must:
(1) describe the act, conduct, or practice committed and include a reference to the law
that the act, conduct, or practice violates; and
(2) provide notice that the tax preparer may request a hearing as provided in this
subdivision.
(e) Within 30 days after the commissioner issues an administrative order under paragraph
(b), the tax preparer may request a hearing to review the commissioner's action. The request
for hearing must be made in writing and must be served on the commissioner at the address
specified in the order. The hearing request must specifically state the reasons for seeking
review of the order. The date on which a request for hearing is served by mail is the postmark
date on the envelope in which the request for hearing is mailed.
(f) If a tax preparer does not timely request a hearing regarding an administrative order
issued under paragraph (b), the order becomes a final order of the commissioner and is not
subject to review by any court or agency.
(g) If a tax preparer timely requests a hearing regarding an administrative order issued
under paragraph (b), the hearing must be commenced new text begin by the issuance of a notice of and
order for hearing by the commissioner new text end within deleted text begin tendeleted text end new text begin 30new text end days after the commissioner receives
the request for a hearing.
(h) A hearing timely requested under paragraph (e) is subject to the contested case
procedure under chapter 14, as modified by this subdivision. The administrative law judge
must issue a report containing findings of fact, conclusions of law, and a recommended
order within deleted text begin tendeleted text end new text begin 30new text end days after the completion of the hearing, the receipt of late-filed exhibits,
or the submission of written arguments, whichever is later.
(i) Within deleted text begin fivedeleted text end new text begin 15new text end days of the date of the administrative law judge's report issued under
paragraph (h), any party aggrieved by the administrative law judge's report may submit
written exceptions and arguments to the commissioner. Within deleted text begin 15deleted text end new text begin 45new text end days after receiving
the administrative law judge's report, the commissioner must issue an order vacating,
modifying, or making final the administrative order.
(j) The commissioner and the tax preparer requesting a hearing may by agreement
lengthen any time periods prescribed in paragraphs (g) to (i).
(k) An administrative order issued under paragraph (b) is in effect until it is modified
or vacated by the commissioner or an appellate court. The administrative hearing provided
by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute
the exclusive remedy for a tax preparer aggrieved by the order.
(l) The commissioner may impose an administrative penalty, in addition to the penalty
under paragraph (a), up to $5,000 per violation of a cease and desist order issued under
paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case
procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under
this paragraph, the tax preparer assessed the penalty may request a hearing to review the
penalty order. The request for hearing must be made in writing and must be served on the
commissioner at the address specified in the order. The hearing request must specifically
state the reasons for seeking review of the order. The cease and desist order issued under
paragraph (b) is not subject to review in a proceeding to challenge the penalty order under
this paragraph. The date on which a request for hearing is served by mail is the postmark
date on the envelope in which the request for hearing is mailed. If the tax preparer does not
timely request a hearing, the penalty order becomes a final order of the commissioner and
is not subject to review by any court or agency. A penalty imposed by the commissioner
under this paragraph may be collected and enforced by the commissioner as an income tax
liability. There is no right to make a claim for refund under section 289A.50 of the penalty
imposed under this paragraph. A penalty imposed under this paragraph is public data.
(m) If a tax preparer violates a cease and desist order issued under paragraph (b), the
commissioner may terminate the tax preparer's authority to transmit returns electronically
to the state. Termination under this paragraph is public data.
(n) A cease and desist order issued under paragraph (b) is public data when it is a final
order.
(o) Notwithstanding any other law, the commissioner may impose a penalty or take other
action under this subdivision against a tax preparer, with respect to a return, within the
period to assess tax on that return as provided by sections 289A.38 to 289A.382.
(p) Notwithstanding any other law, the imposition of a penalty or any other action against
a tax preparer under this subdivision, other than with respect to a return, must be taken by
the commissioner within five years of the violation of statute.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for penalties assessed and orders issued
after the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2022, section 289A.12, subdivision 18, is amended to read:
Subd. 18.
deleted text begin Returnsdeleted text end new text begin Returnnew text end by qualified heirs.
A qualified heir, as defined in section
291.03, subdivision 8, paragraph (c), must file deleted text begin two returnsdeleted text end new text begin a returnnew text end with the commissioner
attesting that no disposition or cessation as provided by section 291.03, subdivision 11,
paragraph (a), occurred. deleted text begin The first return must be filed no earlier than 24 months and no later
than 26 months after the decedent's death.deleted text end The deleted text begin seconddeleted text end return must be filed no earlier than
36 months and no later than 39 months after the decedent's death.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2023 Supplement, section 297E.06, subdivision 4, is amended
to read:
Subd. 4.
Annual auditdeleted text begin ,deleted text end new text begin andnew text end certified inventorydeleted text begin , and cash countdeleted text end .
(a) An organization
licensed under chapter 349 with gross receipts from lawful gambling of more than $750,000
in any year must have an annual financial audit of its lawful gambling activities and funds
for that year. For the purposes of this subdivision, "gross receipts" does not include a licensed
organization's receipts from electronic pull-tabs regulated under chapter 349 provided the
electronic pull-tab manufacturer has completed an annual system and organization controls
audit, containing standards that must incorporate and be consistent with standards prescribed
by the American Institute of Certified Public Accountants.
(b) The commissioner may require a financial audit of the lawful gambling activities
and funds of an organization licensed under chapter 349, with gross receipts less than
$750,000 annually, when an organization has:
(1) failed to timely file required gambling tax returns;
(2) failed to timely pay the gambling tax or regulatory fee;
(3) filed fraudulent gambling tax returns;
(4) failed to take corrective actions required by the commissioner; or
(5) failed to otherwise comply with this chapter.
(c) Audits under this subdivision must be performed by an independent accountant firm
licensed in accordance with chapter 326A.
(d) An organization licensed under chapter 349 must perform an annual certified inventory
deleted text begin and cash countdeleted text end new text begin reportnew text end at the end of its fiscal year and submit the report to the commissioner
within 30 days after the end of its fiscal year. The report shall be on a form prescribed by
the commissioner.
(e) The commissioner of revenue shall prescribe standards for the auditsdeleted text begin ,deleted text end new text begin andnew text end certified
inventorydeleted text begin , and cash count reportsdeleted text end new text begin reportnew text end required under this subdivision. The standards may
vary based on the gross receipts of the organization. The standards must incorporate and
be consistent with standards prescribed by the American Institute of Certified Public
Accountants. A complete, true, and correct copy of the auditsdeleted text begin ,deleted text end new text begin andnew text end certified inventorydeleted text begin , and
cash countdeleted text end report must be filed as prescribed by the commissioner.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2024.
new text end
Sec. 4.
Minnesota Statutes 2022, section 297I.20, subdivision 4, is amended to read:
Subd. 4.
Film production credit.
(a) A taxpayer may claim a credit against the premiums
tax imposed under this chapter equal to the amount indicated on the credit certificate
statement issued to the company under section 116U.27. If the amount of the credit exceeds
the taxpayer's liability for tax under this chapter, the excess is a credit carryover to each of
the five succeeding taxable years. The entire amount of the excess unused credit for the
taxable year must be carried first to the earliest of the taxable years to which the credit may
be carried and then to each successive year to which the credit may be carried. This credit
does not affect the calculation of fire state aid under section 477B.03 and police state aid
under section 477C.03.
(b) This subdivision expires January 1, deleted text begin 2025deleted text end new text begin 2031new text end , for taxable years beginning after and
premiums received after December 31, deleted text begin 2024deleted text end new text begin 2030new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Laws 2023, chapter 1, section 28, is amended to read:
Sec. 28. EXTENSION OF STATUTE OF LIMITATIONS.
(a) Notwithstanding any law to the contrary, a taxpayer whose tax liability changes as
a result of this act may file an amended return by December 31, 2023. The commissioner
may review and assess the return of a taxpayer covered by this provision for the later of:
(1) the periods under Minnesota Statutes, sections 289A.38; deleted text begin 289.39deleted text end new text begin 289A.39new text end , subdivision
3; and 289A.40; or
(2) one year from the time the amended return is filed as a result of a change in tax
liability under this section.
(b) Interest on any additional liabilities as a result of any provision in this act accrue
beginning on January 1, 2024.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively at the same time the changes
incorporated in Laws 2023, chapter 1, were effective for federal purposes.
new text end
APPENDIX
Repealed Minnesota Statutes: H5247-1
13.4967 OTHER TAX DATA CODED ELSEWHERE.
Subd. 5.
Marijuana and controlled substance tax information.
Disclosure of information obtained under chapter 297D is governed by section 297D.13, subdivisions 1 to 3.
297A.99 LOCAL SALES TAXES.
Subd. 3a.
Temporary moratorium.
(a) Notwithstanding subdivisions 1, 2, and 3, until after May 31, 2025, a political subdivision may not engage in any of the following activities in connection with imposing a new local sales and use tax or modifying an existing local sales and use tax:
(1) any activity described in subdivision 1, paragraph (d);
(2) adopt a resolution; or
(3) seek voter approval.
(b) Paragraph (a) does not apply to new local sales and use taxes or modifications to existing local sales and use taxes authorized in May, 2023.
(c) This subdivision expires June 1, 2025.
297D.01 DEFINITIONS.
Subdivision 1.
Illegal cannabis.
"Illegal cannabis" means any taxable cannabis product as defined in section 295.81, subdivision 1, paragraph (r), whether real or counterfeit, that is held, possessed, transported, transferred, sold, or offered to be sold in violation of chapter 342 or Minnesota criminal laws.
Subd. 2.
Controlled substance.
"Controlled substance" means any drug or substance, whether real or counterfeit, as defined in section 152.01, subdivision 4, that is held, possessed, transported, transferred, sold, or offered to be sold in violation of Minnesota laws. "Controlled substance" does not include illegal cannabis.
Subd. 3.
Tax obligor or obligor.
"Tax obligor" or "obligor" means a person who in violation of Minnesota law manufactures, produces, ships, transports, or imports into Minnesota or in any manner acquires or possesses more than 42-1/2 grams of illegal cannabis, or seven or more grams of any controlled substance, or ten or more dosage units of any controlled substance which is not sold by weight. A quantity of illegal cannabis or other controlled substance is measured by the weight of the substance whether pure or impure or dilute, or by dosage units when the substance is not sold by weight, in the tax obligor's possession. A quantity of a controlled substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers.
Subd. 4.
Commissioner.
"Commissioner" means the commissioner of revenue.
297D.02 ADMINISTRATION.
The commissioner of revenue shall administer this chapter. The commissioner shall prescribe the content, format, and manner of all forms and other documents required to be filed under this chapter pursuant to section 270C.30. Payments required by this chapter must be made to the commissioner on the form provided by the commissioner. Tax obligors are not required to give their name, address, Social Security number, or other identifying information on the form. The commissioner shall collect all taxes under this chapter.
297D.03 RULES.
The commissioner may adopt rules necessary to enforce this chapter. The commissioner shall adopt a uniform system of providing, affixing, and displaying official stamps, official labels, or other official indicia for marijuana and controlled substances on which a tax is imposed.
297D.04 TAX PAYMENT REQUIRED FOR POSSESSION.
No tax obligor may possess any illegal cannabis or controlled substance upon which a tax is imposed by section 297D.08 unless the tax has been paid on the illegal cannabis or a controlled substance as evidenced by a stamp or other official indicia.
297D.05 NO IMMUNITY.
Nothing in this chapter may in any manner provide immunity for a tax obligor from criminal prosecution pursuant to Minnesota law.
297D.06 PHARMACEUTICALS.
Nothing in this chapter requires persons registered under chapter 151 or otherwise lawfully in possession of illegal cannabis or a controlled substance to pay the tax required under this chapter.
297D.07 MEASUREMENT.
For the purpose of calculating the tax under section 297D.08, a quantity of illegal cannabis or a controlled substance is measured by the weight of the substance whether pure or impure or dilute, or by dosage units when the substance is not sold by weight, in the tax obligor's possession. A quantity of a controlled substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers.
297D.08 TAX RATE.
A tax is imposed on illegal cannabis and controlled substances as defined in section 297D.01 at the following rates:
(1) on each gram of illegal cannabis, or each portion of a gram, $3.50; and
(2) on each gram of controlled substance, or portion of a gram, $200; or
(3) on each ten dosage units of a controlled substance that is not sold by weight, or portion thereof, $400.
297D.085 CREDIT FOR PREVIOUSLY PAID TAXES.
If another state or local unit of government has previously assessed an excise tax on the illegal cannabis or controlled substances, the taxpayer must pay the difference between the tax due under section 297D.08 and the tax previously paid. If the tax previously paid to the other state or local unit of government was equal to or greater than the tax due under section 297D.08, no tax is due. The burden is on the taxpayer to show that an excise tax on the illegal cannabis or controlled substances has been paid to another state or local unit of government.
297D.09 PENALTIES; CRIMINAL PROVISIONS.
Subdivision 1.
Penalties.
Any tax obligor violating this chapter is subject to a penalty of 100 percent of the tax in addition to the tax imposed by section 297D.08. The penalty will be collected as part of the tax.
Subd. 1a.
Criminal penalty; sale without affixed stamps.
In addition to the tax penalty imposed, a tax obligor distributing or possessing illegal cannabis or controlled substances without affixing the appropriate stamps, labels, or other indicia is guilty of a crime and, upon conviction, may be sentenced to imprisonment for not more than seven years or to payment of a fine of not more than $14,000, or both.
Subd. 2.
Statute of limitations.
Notwithstanding section 628.26, or any other provision of the criminal laws of this state, an indictment may be found and filed, or a complaint filed, upon any criminal offense specified in this section, in the proper court within six years after the commission of this offense.
297D.10 STAMP PRICE.
Official stamps, labels, or other indicia to be affixed to all illegal cannabis or controlled substances shall be purchased from the commissioner. The purchaser shall pay 100 percent of face value for each stamp, label, or other indicia at the time of the purchase.
297D.11 PAYMENT DUE.
Subdivision 1.
Stamps affixed.
When a tax obligor purchases, acquires, transports, or imports into this state illegal cannabis or controlled substances on which a tax is imposed by section 297D.08, and if the indicia evidencing the payment of the tax have not already been affixed, the tax obligor shall have them permanently affixed on the illegal cannabis or controlled substance immediately after receiving the substance. Each stamp or other official indicia may be used only once.
Subd. 2.
Payable on possession.
Taxes imposed upon illegal cannabis or controlled substances by this chapter are due and payable immediately upon acquisition or possession in this state by a tax obligor.
297D.12 ALL ASSESSMENTS ARE JEOPARDY.
Subdivision 1.
Assessment procedure.
An assessment for a tax obligor not possessing valid stamps or other official indicia showing that the tax has been paid shall be considered a jeopardy assessment or collection, as provided in section 270C.36. The commissioner shall assess a tax and applicable penalties based on personal knowledge or information available to the commissioner; mail the taxpayer at the taxpayer's last known address or serve in person, a written notice of the amount of tax and penalty; demand its immediate payment; and, if payment is not immediately made, collect the tax and penalty by any method prescribed in chapter 270C, except that the commissioner need not await the expiration of the times specified in chapter 270C.
Subd. 2.
Injunction prohibited.
No person may bring suit to enjoin the assessment or collection of any taxes, interest, or penalties imposed by this chapter.
Subd. 3.
Standard of proof.
The tax and penalties assessed by the commissioner are presumed to be valid and correctly determined and assessed. The burden is upon the taxpayer to show their incorrectness or invalidity. Any statement filed by the commissioner with the court administrator, or any other certificate by the commissioner of the amount of tax and penalties determined or assessed is admissible in evidence and is prima facie evidence of the facts it contains.
297D.13 CONFIDENTIAL NATURE OF INFORMATION.
Subdivision 1.
Disclosure prohibited.
Notwithstanding any law to the contrary, neither the commissioner nor a public employee may reveal facts contained in a report or return required by this chapter or any information obtained from a tax obligor; nor can any information contained in such a report or return or obtained from a tax obligor be used against the tax obligor in any criminal proceeding, unless independently obtained, except in connection with a proceeding involving taxes due under this chapter from the tax obligor making the return.
Subd. 2.
Penalty for disclosure.
Any person violating this section is guilty of a gross misdemeanor.
Subd. 3.
Statistics.
This section does not prohibit the commissioner from publishing statistics that do not disclose the identity of tax obligors or the contents of particular returns or reports.
Subd. 4.
Possession of stamps.
A stamp denoting payment of the tax imposed under this chapter must not be used against the taxpayer in a criminal proceeding, except that the stamp may be used against the taxpayer in connection with the administration or civil or criminal enforcement of the tax imposed under this chapter or any similar tax imposed by another state or local unit of government.
477A.30 LOCAL HOMELESS PREVENTION AID.
Subd. 8.
Expiration.
Distributions under this section expire after aids payable in 2028 have been distributed.
Repealed Minnesota Session Laws: H5247-1
Laws 2023, chapter 64, article 15, section 24
Sec. 24. new text begin TAX FILING MODERNIZATION.new text end
new text begin Subdivision 1. new text end
new text begin Account established; appropriation. new text end
new text begin A tax filing modernization account is established in the special revenue fund. All funds in the tax filing modernization account are appropriated to the commissioner of revenue for the purposes specified in subdivision 3. new text end
new text begin Subd. 2. new text end
new text begin Transfer. new text end
new text begin $5,000,000 in fiscal year 2024 is transferred to the tax filing modernization account from the general fund. This is a onetime transfer. new text end
new text begin Subd. 3. new text end
new text begin Eligible uses. new text end
new text begin (a) The commissioner of revenue may use funds in the tax filing modernization account to modernize the state process for filing individual income tax returns, including: new text end
new text begin (1) updating and reviewing changes to individual income tax forms resulting from this act; new text end
new text begin (2) coordinating the process for filing state individual income tax returns with free filing options for the federal income tax; and new text end
new text begin (3) development and implementation of state free filing options for the individual income tax. new text end
new text begin (b) Beginning July 1, 2026, the commissioner of revenue may use any unspent funds in the tax filing modernization account to make taxpayer assistance grants to eligible organizations qualifying under section 7526A(e)(2)(B) of the Internal Revenue Code. new text end
new text begin Subd. 4. new text end
new text begin Unspent funds. new text end
new text begin Any unspent funds in the tax filing modernization account cancel to the general fund on June 30, 2027. new text end