Minnesota Legislature
HF 890
as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to taxation; reducing income tax rates and 1.3 changing the brackets; reducing marriage penalties; 1.4 eliminating accelerated liability for sales, 1.5 cigarettes and tobacco, and liquor taxes; exempting 1.6 sales to veterans homes from the sales and use tax; 1.7 exempting sales of tangible personal property used in 1.8 the production of television commercials from the 1.9 sales and use tax; changing administration of the 1.10 sales tax exemption for capital equipment; changing 1.11 the passenger automobile registration tax; providing 1.12 for agricultural assistance; eliminating payments; 1.13 transferring funds; canceling appropriations; 1.14 appropriating money; amending Minnesota Statutes 1998, 1.15 sections 168.013, subdivision 1a; 289A.11, subdivision 1.16 1; 289A.18, subdivision 4; 289A.20, subdivision 4; 1.17 289A.56, subdivision 4; 290.06, subdivisions 2c and 1.18 2d; 297A.25, subdivision 11, and by adding a 1.19 subdivision; and 297F.09, subdivisions 1 and 2; 1.20 proposing coding for new law in Minnesota Statutes, 1.21 chapter 16A; repealing Minnesota Statutes 1998, 1.22 sections 289A.60, subdivision 15; 297A.15, subdivision 1.23 5; 297F.09, subdivision 6; and 297G.09, subdivision 5. 1.24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.25 ARTICLE 1 1.26 INCOME TAXES 1.27 Section 1. Minnesota Statutes 1998, section 290.06, 1.28 subdivision 2c, is amended to read: 1.29 Subd. 2c. [SCHEDULES OF RATES FOR INDIVIDUALS, ESTATES, 1.30 AND TRUSTS.] (a) The income taxes imposed by this chapter upon 1.31 married individuals filing joint returns and surviving spouses 1.32 as defined in section 2(a) of the Internal Revenue Code must be 1.33 computed by applying to their taxable net income the following 1.34 schedule of rates: 2.1 (1) On the first$19,910$41,680,65.8 percent; 2.2 (2) On all over$19,910$41,680, but not 2.3 over$79,120$113,360, 8 percent; 2.4 (3) On all over$79,120$113,360, 8.5 percent. 2.5Married individuals filing separate returns, estates, and2.6trusts must compute their income tax by applying the above rates2.7to their taxable income, except that the income brackets will be2.8one-half of the above amounts.2.9 (b) The income taxes imposed by this chapter upon unmarried 2.10 individuals, married individuals filing separate returns, 2.11 estates, and trusts must be computed by applying to taxable net 2.12 income the following schedule of rates: 2.13 (1) On the first$13,620$20,840,65.8 percent; 2.14 (2) On all over$13,620$20,840, but not 2.15 over$44,750$56,680, 8 percent; 2.16 (3) On all over$44,750$56,680, 8.5 percent. 2.17 (c) The income taxes imposed by this chapter upon unmarried 2.18 individuals qualifying as a head of household as defined in 2.19 section 2(b) of the Internal Revenue Code must be computed by 2.20 applying to taxable net income the following schedule of rates: 2.21 (1) On the first$16,770$31,260,65.8 percent; 2.22 (2) On all over$16,770$31,260, but not 2.23 over$67,390$85,020, 8 percent; 2.24 (3) On all over$67,390$85,020, 8.5 percent. 2.25 (d) In lieu of a tax computed according to the rates set 2.26 forth in this subdivision, the tax of any individual taxpayer 2.27 whose taxable net income for the taxable year is less than an 2.28 amount determined by the commissioner must be computed in 2.29 accordance with tables prepared and issued by the commissioner 2.30 of revenue based on income brackets of not more than $100. The 2.31 amount of tax for each bracket shall be computed at the rates 2.32 set forth in this subdivision, provided that the commissioner 2.33 may disregard a fractional part of a dollar unless it amounts to 2.34 50 cents or more, in which case it may be increased to $1. 2.35 (e) An individual who is not a Minnesota resident for the 2.36 entire year must compute the individual's Minnesota income tax 3.1 as provided in this subdivision. After the application of the 3.2 nonrefundable credits provided in this chapter, the tax 3.3 liability must then be multiplied by a fraction in which: 3.4 (1) the numerator is the individual's Minnesota source 3.5 federal adjusted gross income as defined in section 62 of the 3.6 Internal Revenue Code disregarding income or loss flowing from a 3.7 corporation having a valid election for the taxable year under 3.8 section 1362 of the Internal Revenue Code but which is not an 3.9 "S" corporation under section 290.9725 and increased by the 3.10 additions required under section 290.01, subdivision 19a, 3.11 clauses (1) and (9), after applying the allocation and 3.12 assignability provisions of section 290.081, clause (a), or 3.13 290.17; and 3.14 (2) the denominator is the individual's federal adjusted 3.15 gross income as defined in section 62 of the Internal Revenue 3.16 Code of 1986, increased by the amounts specified in section 3.17 290.01, subdivision 19a, clauses (1), (5), (6), (7), and (9), 3.18 and reduced by the amounts specified in section 290.01, 3.19 subdivision 19b, clauses (1), (11), and (12). 3.20 (f) For tax years beginning after December 31, 1999, "5.75 3.21 percent" shall be substituted for "5.8 percent" in paragraphs 3.22 (a) to (c). 3.23 Sec. 2. Minnesota Statutes 1998, section 290.06, 3.24 subdivision 2d, is amended to read: 3.25 Subd. 2d. [INFLATION ADJUSTMENT OF BRACKETS.] (a) For 3.26 taxable years beginning after December 31,19911999, the 3.27 minimum and maximum dollar amounts for each rate bracket for 3.28 which a tax is imposed in subdivision 2c shall be adjusted for 3.29 inflation by the percentage determined under paragraph (b). For 3.30 the purpose of making the adjustment as provided in this 3.31 subdivision all of the rate brackets provided in subdivision 2c 3.32 shall be the rate brackets as they existed for taxable years 3.33 beginning after December 31,19901998, and before January 3.34 1,19922000. The rate applicable to any rate bracket must not 3.35 be changed. The dollar amounts setting forth the tax shall be 3.36 adjusted to reflect the changes in the rate brackets. The rate 4.1 brackets as adjusted must be rounded to the nearest $10 amount. 4.2 If the rate bracket ends in $5, it must be rounded up to the 4.3 nearest $10 amount. 4.4 (b) The commissioner shall adjust the rate brackets and by 4.5 the percentage determined pursuant to the provisions of section 4.6 1(f) of the Internal Revenue Code, except that in section 4.7 1(f)(3)(B) the word "19901998" shall be substituted for the 4.8 word "19871992." For19912000, the commissioner shall then 4.9 determine the percent change from the 12 months ending on August 4.10 31,19901998, to the 12 months ending on August 31,19911999, 4.11 and in each subsequent year, from the 12 months ending on August 4.12 31,19901998, to the 12 months ending on August 31 of the year 4.13 preceding the taxable year. The determination of the 4.14 commissioner pursuant to this subdivision shall not be 4.15 considered a "rule" and shall not be subject to the 4.16 Administrative Procedure Act contained in chapter 14. 4.17 No later than December 15 of each year, the commissioner 4.18 shall announce the specific percentage that will be used to 4.19 adjust the tax rate brackets. 4.20 Sec. 3. [EFFECTIVE DATE.] 4.21 Sections 1 and 2 are effective for tax years beginning 4.22 after December 31, 1998. 4.23 ARTICLE 2 4.24 SALES AND EXCISE TAXES 4.25 Section 1. Minnesota Statutes 1998, section 289A.11, 4.26 subdivision 1, is amended to read: 4.27 Subdivision 1. [RETURN REQUIRED.]Except as provided in4.28section 289A.18, subdivision 4,For the month in which taxes 4.29 imposed by chapter 297A are payable, or for which a return is 4.30 due, a return for the preceding reporting period must be filed 4.31 with the commissioner in the form and manner the commissioner 4.32 prescribes. A person making sales at retail at two or more 4.33 places of business may file a consolidated return subject to 4.34 rules prescribed by the commissioner. In computing the dollar 4.35 amount of items on the return, the amounts are rounded off to 4.36 the nearest whole dollar, disregarding amounts less than 50 5.1 cents and increasing amounts of 50 cents to 99 cents to the next 5.2 highest dollar. 5.3 Notwithstanding this subdivision, a person who is not 5.4 required to hold a sales tax permit under chapter 297A and who 5.5 makes annual purchases of less than $18,500 that are subject to 5.6 the use tax imposed by section 297A.14, may file an annual use 5.7 tax return on a form prescribed by the commissioner. If a 5.8 person who qualifies for an annual use tax reporting period is 5.9 required to obtain a sales tax permit or makes use tax purchases 5.10 in excess of $18,500 during the calendar year, the reporting 5.11 period must be considered ended at the end of the month in which 5.12 the permit is applied for or the purchase in excess of $18,500 5.13 is made and a return must be filed for the preceding reporting 5.14 period. 5.15 Sec. 2. Minnesota Statutes 1998, section 289A.18, 5.16 subdivision 4, is amended to read: 5.17 Subd. 4. [SALES AND USE TAX RETURNS.] (a) Sales and use 5.18 tax returns must be filed on or before the 20th day of the month 5.19 following the close of the preceding reporting period, except 5.20 that annual use tax returns provided for under section 289A.11, 5.21 subdivision 1, must be filed by April 15 following the close of 5.22 the calendar year, in the case of individuals. Annual use tax 5.23 returns of businesses, including sole proprietorships, and 5.24 annual sales tax returns must be filed by February 5 following 5.25 the close of the calendar year. 5.26 (b)Except for the return for the June reporting period,5.27which is due on the following August 25,Returns filed by 5.28 retailers required to remit liabilities by means of funds 5.29 transfer under section 289A.20, subdivision 4, paragraph (d), 5.30 are due on or before the 25th day of the month following the 5.31 close of the preceding reporting period. 5.32 (c) If a retailer has an average sales and use tax 5.33 liability, including local sales and use taxes administered by 5.34 the commissioner, equal to or less than $500 per month in any 5.35 quarter of a calendar year, and has substantially complied with 5.36 the tax laws during the preceding four calendar quarters, the 6.1 retailer may request authorization to file and pay the taxes 6.2 quarterly in subsequent calendar quarters. The authorization 6.3 remains in effect during the period in which the retailer's 6.4 quarterly returns reflect sales and use tax liabilities of less 6.5 than $1,500 and there is continued compliance with state tax 6.6 laws. 6.7 (d) If a retailer has an average sales and use tax 6.8 liability, including local sales and use taxes administered by 6.9 the commissioner, equal to or less than $100 per month during a 6.10 calendar year, and has substantially complied with the tax laws 6.11 during that period, the retailer may request authorization to 6.12 file and pay the taxes annually in subsequent years. The 6.13 authorization remains in effect during the period in which the 6.14 retailer's annual returns reflect sales and use tax liabilities 6.15 of less than $1,200 and there is continued compliance with state 6.16 tax laws. 6.17 (e) The commissioner may also grant quarterly or annual 6.18 filing and payment authorizations to retailers if the 6.19 commissioner concludes that the retailers' future tax 6.20 liabilities will be less than the monthly totals identified in 6.21 paragraphs (c) and (d). An authorization granted under this 6.22 paragraph is subject to the same conditions as an authorization 6.23 granted under paragraphs (c) and (d). 6.24 Sec. 3. Minnesota Statutes 1998, section 289A.20, 6.25 subdivision 4, is amended to read: 6.26 Subd. 4. [SALES AND USE TAX.] (a) The taxes imposed by 6.27 chapter 297A are due and payable to the commissioner monthly on 6.28 or before the 20th day of the month following the month in which 6.29 the taxable event occurred or following another reporting period 6.30 as the commissioner prescribes, except that use taxes due on an 6.31 annual use tax return as provided under section 289A.11, 6.32 subdivision 1, are payable by April 15 following the close of 6.33 the calendar year. 6.34 (b)A vendor having a liability of $120,000 or more during6.35a fiscal year ending June 30 must remit the June liability for6.36the next year in the following manner:7.1(1) Two business days before June 30 of the year, the7.2vendor must remit 75 percent of the estimated June liability to7.3the commissioner.7.4(2) On or before August 14 of the year, the vendor must pay7.5any additional amount of tax not remitted in June.7.6(c)A vendor having a liability of $120,000 or more during 7.7 a fiscal year ending June 30 must remit all liabilities in the 7.8 subsequent calendar year by means of a funds transfer as defined 7.9 in section 336.4A-104, paragraph (a). The funds transfer 7.10 payment date, as defined in section 336.4A-401, must be on or 7.11 before the 14th day of the month following the month in which 7.12 the taxable event occurred, except for 75 percent of the7.13estimated June liability, which is due two business days before7.14June 30. The remaining amount of the June liability is due on7.15August 14. If the date the tax is due is not a funds transfer 7.16 business day, as defined in section 336.4A-105, paragraph (a), 7.17 clause (4), the payment date must be on or before the funds 7.18 transfer business day next following the date the tax is due. 7.19(d)(c) If the vendor required to remit by electronic funds 7.20 transfer as provided in paragraph(c)(b) is unable due to 7.21 reasonable cause to determine the actual sales and use tax due 7.22 on or before the due date for payment, the vendor may remit an 7.23 estimate of the tax owed using one of the following options: 7.24 (1) 100 percent of the tax reported on the previous month's 7.25 sales and use tax return; 7.26 (2) 100 percent of the tax reported on the sales and use 7.27 tax return for the same month in the previous calendar year; or 7.28 (3) 95 percent of the actual tax due. 7.29 Any additional amount of tax that is not remitted on or 7.30 before the due date for payment, must be remitted with the 7.31 return. If a vendor fails to remit the actual liability or does 7.32 not remit using one of the estimate options by the due date for 7.33 payment, the vendor must remit actual liability as provided in 7.34 paragraph(c)(b) in all subsequent periods.This paragraph7.35does not apply to the June sales and use tax liability.7.36 Sec. 4. Minnesota Statutes 1998, section 289A.56, 8.1 subdivision 4, is amended to read: 8.2 Subd. 4. [CAPITAL EQUIPMENT REFUNDS;REFUNDS TO 8.3 PURCHASERS.]Notwithstanding subdivision 3, for refunds payable8.4under section 297A.15, subdivision 5, interest is computed from8.5the date the refund claim is filed with the commissioner.For 8.6 refunds payable under section 289A.50, subdivision 2a, interest 8.7 is computed from the 20th day of the month following the month 8.8 of the invoice date for the purchase which is the subject of the 8.9 refund. 8.10 Sec. 5. Minnesota Statutes 1998, section 297A.25, 8.11 subdivision 11, is amended to read: 8.12 Subd. 11. [SALES TO GOVERNMENT.] The gross receipts from 8.13 all sales, including sales in which title is retained by a 8.14 seller or a vendor or is assigned to a third party under an 8.15 installment sale or lease purchase agreement under section 8.16 465.71, of tangible personal property to, and all storage, use 8.17 or consumption of such property by, the United States and its 8.18 agencies and instrumentalities, the University of Minnesota, 8.19 state universities, community colleges, technical colleges, 8.20 state academies, the Lola and Rudy Perpich Minnesota center for 8.21 arts education, an instrumentality of a political subdivision 8.22 that is accredited as an optional/special function school by the 8.23 North Central Association of Colleges and Schools, school 8.24 districts, public libraries, public library systems, 8.25 multicounty, multitype library systems as defined in section 8.26 134.001, county law libraries under chapter 134A, the state 8.27 library under section 480.09, and the legislative reference 8.28 library are exempt. 8.29 As used in this subdivision, "school districts" means 8.30 public school entities and districts of every kind and nature 8.31 organized under the laws of the state of Minnesota, including, 8.32 without limitation, school districts, intermediate school 8.33 districts, education districts, service cooperatives, secondary 8.34 vocational cooperative centers, special education cooperatives, 8.35 joint purchasing cooperatives, telecommunication cooperatives, 8.36 regional management information centers, and any instrumentality 9.1 of a school district, as defined in section 471.59. 9.2 Sales exempted by this subdivision include sales under 9.3 section 297A.01, subdivision 3, paragraph (f). 9.4 Sales to veterans homes operated by the veterans homes 9.5 board of directors or hospitals and nursing homes owned and 9.6 operated by the state or any political subdivisions of the state 9.7 are exempt under this subdivision. 9.8 Sales of supplies and equipment used in the operation of an 9.9 ambulance service owned and operated by a political subdivision 9.10 of the state are exempt under this subdivision provided that the 9.11 supplies and equipment are used in the course of providing 9.12 medical care. Sales to a political subdivision of repair and 9.13 replacement parts for emergency rescue vehicles and fire trucks 9.14 and apparatus are exempt under this subdivision. 9.15 Sales to a political subdivision of machinery and 9.16 equipment, except for motor vehicles, used directly for mixed 9.17 municipal solid waste management services at a solid waste 9.18 disposal facility as defined in section 115A.03, subdivision 10, 9.19 are exempt under this subdivision. 9.20 Sales to political subdivisions of chore and homemaking 9.21 services to be provided to elderly or disabled individuals are 9.22 exempt. 9.23 Sales to a town of gravel and of machinery, equipment, and 9.24 accessories, except motor vehicles, used exclusively for road 9.25 and bridge maintenance, and leases of motor vehicles exempt from 9.26 tax under section 297B.03, clause (10), are exempt. 9.27 Sales of telephone services to the department of 9.28 administration that are used to provide telecommunications 9.29 services through the intertechnologies revolving fund are exempt 9.30 under this subdivision. 9.31 This exemption shall not apply to building, construction or 9.32 reconstruction materials purchased by a contractor or a 9.33 subcontractor as a part of a lump-sum contract or similar type 9.34 of contract with a guaranteed maximum price covering both labor 9.35 and materials for use in the construction, alteration, or repair 9.36 of a building or facility. This exemption does not apply to 10.1 construction materials purchased by tax exempt entities or their 10.2 contractors to be used in constructing buildings or facilities 10.3 which will not be used principally by the tax exempt entities. 10.4 This exemption does not apply to the leasing of a motor 10.5 vehicle as defined in section 297B.01, subdivision 5, except for 10.6 leases entered into by the United States or its agencies or 10.7 instrumentalities. 10.8 The tax imposed on sales to political subdivisions of the 10.9 state under this section applies to all political subdivisions 10.10 other than those explicitly exempted under this subdivision, 10.11 notwithstanding section 115A.69, subdivision 6, 116A.25, 10.12 360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2, 10.13 469.127, 473.448, 473.545, or 473.608 or any other law to the 10.14 contrary enacted before 1992. 10.15 Sales exempted by this subdivision include sales made to 10.16 other states or political subdivisions of other states, if the 10.17 sale would be exempt from taxation if it occurred in that state, 10.18 but do not include sales under section 297A.01, subdivision 3, 10.19 paragraphs (c) and (e). 10.20 Sec. 6. Minnesota Statutes 1998, section 297A.25, is 10.21 amended by adding a subdivision to read: 10.22 Subd. 79. [TELEVISION COMMERCIALS.] The gross receipts 10.23 from the sale of and storage, use, or consumption of tangible 10.24 personal property which is primarily used or consumed in the 10.25 pre-production, production, or postproduction of any television 10.26 commercial and any such commercial, regardless of the medium in 10.27 which it is transferred, are exempt. "Pre-production" and 10.28 "production" include but are not limited to all activities 10.29 related to the preparation for shooting and the shooting of 10.30 television commercials, including film processing. Equipment 10.31 rented for the pre-production and production activities is 10.32 exempt. "Postproduction" includes but is not limited to all 10.33 activities related to the finishing and duplication of 10.34 television commercials. This exemption does not apply to 10.35 tangible personal property used primarily in administration, 10.36 general management, or marketing. Machinery and equipment 11.1 purchased for use in producing such commercials and fuel, 11.2 electricity, gas, or steam used for space heating or lighting 11.3 are not exempt under this subdivision. 11.4 Sec. 7. Minnesota Statutes 1998, section 297F.09, 11.5 subdivision 1, is amended to read: 11.6 Subdivision 1. [MONTHLY RETURN; CIGARETTE DISTRIBUTOR.] On 11.7 or before the 18th day of each calendar month, a distributor 11.8 with a place of business in this state shall file a return with 11.9 the commissioner showing the quantity of cigarettes manufactured 11.10 or brought in from outside the state or purchased during the 11.11 preceding calendar month and the quantity of cigarettes sold or 11.12 otherwise disposed of in this state and outside this state 11.13 during that month. A licensed distributor outside this state 11.14 shall in like manner file a return showing the quantity of 11.15 cigarettes shipped or transported into this state during the 11.16 preceding calendar month. Returns must be made in the form and 11.17 manner prescribed by the commissioner and must contain any other 11.18 information required by the commissioner. The return must be 11.19 accompanied by a remittance for the full unpaid tax liability 11.20 shown by it.The return for the May liability and 75 percent of11.21the estimated June liability is due on the date payment of the11.22tax is due.11.23 Sec. 8. Minnesota Statutes 1998, section 297F.09, 11.24 subdivision 2, is amended to read: 11.25 Subd. 2. [MONTHLY RETURN; TOBACCO PRODUCTS DISTRIBUTOR.] 11.26 On or before the 18th day of each calendar month, a distributor 11.27 with a place of business in this state shall file a return with 11.28 the commissioner showing the quantity and wholesale sales price 11.29 of each tobacco product: 11.30 (1) brought, or caused to be brought, into this state for 11.31 sale; and 11.32 (2) made, manufactured, or fabricated in this state for 11.33 sale in this state, during the preceding calendar month. 11.34 Every licensed distributor outside this state shall in like 11.35 manner file a return showing the quantity and wholesale sales 11.36 price of each tobacco product shipped or transported to 12.1 retailers in this state to be sold by those retailers, during 12.2 the preceding calendar month. Returns must be made in the form 12.3 and manner prescribed by the commissioner and must contain any 12.4 other information required by the commissioner. The return must 12.5 be accompanied by a remittance for the full tax liability shown, 12.6 less 1.5 percent of the liability as compensation to reimburse 12.7 the distributor for expenses incurred in the administration of 12.8 this chapter.The return for the May liability and 75 percent12.9of the estimated June liability is due on the date payment of12.10the tax is due.12.11 Sec. 9. [REPEALER.] 12.12 (a) Minnesota Statutes 1998, section 297A.15, subdivision 12.13 5, is repealed. 12.14 (b) Minnesota Statutes 1998, sections 289A.60, subdivision 12.15 15; 297F.09, subdivision 6; and 297G.09, subdivision 5, are 12.16 repealed. 12.17 Sec. 10. [EFFECTIVE DATE.] 12.18 Sections 1, 2, 3, 7, 8, and 9, paragraph (b), are effective 12.19 for returns due after January 1, 2000. 12.20 Sections 4, 5, 6, and 9, paragraph (a), are effective for 12.21 sales and purchases occurring on or after July 1, 1999. 12.22 ARTICLE 3 12.23 PASSENGER AUTOMOBILE REGISTRATION TAX 12.24 Section 1. Minnesota Statutes 1998, section 168.013, 12.25 subdivision 1a, is amended to read: 12.26 Subd. 1a. [PASSENGER AUTOMOBILE; HEARSE.] (a) On passenger 12.27 automobiles as defined in section 168.011, subdivision 7, and 12.28 hearses, except as otherwise provided, the tax shall be $10 plus 12.29 an additional tax equal to 1.25 percent of the base value. 12.30 (b) Subject to the classification provisions herein, "base 12.31 value" means the manufacturer's suggested retail price of the 12.32 vehicle including destination charge using list price 12.33 information published by the manufacturer or determined by the 12.34 registrar if no suggested retail price exists, and shall not 12.35 include the cost of each accessory or item of optional equipment 12.36 separately added to the vehicle and the suggested retail price. 13.1 (c) If the manufacturer's list price information contains a 13.2 single vehicle identification number followed by various 13.3 descriptions and suggested retail prices, the registrar shall 13.4 select from those listings only the lowest price for determining 13.5 base value. 13.6 (d) If unable to determine the base value because the 13.7 vehicle is specially constructed, or for any other reason, the 13.8 registrar may establish such value upon the cost price to the 13.9 purchaser or owner as evidenced by a certificate of cost but not 13.10 including Minnesota sales or use tax or any local sales or other 13.11 local tax. 13.12 (e) The registrar shall classify every vehicle in its 13.13 proper base value class as follows: 13.14 FROM TO 13.15 $ 0 $199.99 13.16 200 399.99 13.17 and thereafter a series of classes successively set in brackets 13.18 having a spread of $200 consisting of such number of classes as 13.19 will permit classification of all vehicles. 13.20 (f) The base value for purposes of this section shall be 13.21 the middle point between the extremes of its class. 13.22 (g) The registrar shall establish the base value, when new, 13.23 of every passenger automobile and hearse registered prior to the 13.24 effective date of Extra Session Laws 1971, chapter 31, using 13.25 list price information published by the manufacturer or any 13.26 nationally recognized firm or association compiling such data 13.27 for the automotive industry. If unable to ascertain the base 13.28 value of any registered vehicle in the foregoing manner, the 13.29 registrar may use any other available source or method. The tax 13.30 on all previously registered vehicles shall be computed upon the 13.31 base value thus determined taking into account the depreciation 13.32 provisions of paragraph (h). 13.33 (h) Except as provided in paragraph (i), the annual 13.34 additional tax computed upon the base value as provided herein, 13.35 during the first and second years of vehicle life shall be 13.36 computed upon 100 percent of the base value; for the third and 14.1 fourth years, 90 percent of such value; for the fifth and sixth 14.2 years, 75 percent of such value; for the seventh year, 60 14.3 percent of such value; for the eighth year, 40 percent of such 14.4 value; for the ninth year, 30 percent of such value; for the 14.5 tenth year, ten percent of such value; for the 11th and each 14.6 succeeding year, the sum of $25. 14.7 In no event shall the annual additional tax be less than 14.8 $25. 14.9 For registration of passenger automobiles, other than the 14.10 initial registration of a new passenger automobile, the annual 14.11 additional tax shall not exceed $65. 14.12 (i) The annual additional tax under paragraph (h) on a 14.13 motor vehicle on which the first annual tax was paid before 14.14 January 1, 1990, must not exceed the tax that was paid on that 14.15 vehicle the year before. 14.16 Sec. 2. [16A.34] [APPROPRIATIONS.] 14.17 (a) The amounts in the columns below are appropriated from 14.18 the general fund to the funds and accounts specified in the 14.19 years indicated. 14.20 2000 2001 14.21 Trunk highway fund $56,367,300 $112,734,600 14.22 County state-aid highway fund 26,365,350 52,730,700 14.23 Municipal state-aid street fund 8,182,350 16,364,700 14.24 Flexible highway account 2,559,975 5,119,950 14.25 Town road account 1,459,425 2,918,850 14.26 Town bridge account 765,600 1,531,200 14.27 (b) For fiscal year 2002 and each fiscal year thereafter, 14.28 there is appropriated from the general fund $112,734,600 to the 14.29 trunk highway fund, $52,730,700 to the county state-aid highway 14.30 fund, $16,364,700 to the municipal state-aid fund, $5,119,950 to 14.31 the flexible highway account, $2,918,850 to the town road 14.32 account, and $1,531,200 to the town bridge account. 14.33 Sec. 3. [EFFECTIVE DATE.] 14.34 Section 1 is effective for motor vehicle taxes due on 14.35 registrations required to be made on or after January 1, 2000. 14.36 ARTICLE 4 15.1 AGRICULTURAL ASSISTANCE AND STATE AID REFORM 15.2 Section 1. [AGRICULTURAL ASSISTANCE IN 1999.] 15.3 Subdivision 1. [AGRICULTURAL ASSISTANCE.] An agricultural 15.4 assistance payment shall be made to each qualified individual 15.5 equal to five percent of the difference of $30,000 less the 15.6 individual's 1998 federal adjusted gross income (not less than 15.7 zero). 15.8 Subd. 2. [QUALIFICATIONS.] A qualified individual is an 15.9 individual, or a married couple who filed a joint individual 15.10 income tax return for 1998, who: 15.11 (1) in 1998 had at least $30,000 of gross income from 15.12 farming in Minnesota as defined in section 6654(i) of the 15.13 Internal Revenue Code of 1986, as amended through December 31, 15.14 1998; 15.15 (2) had a net taxable loss from total farming activities in 15.16 1998; and 15.17 (3) files an application for payment with the commissioner 15.18 of revenue before September 1, 1999, on a form prescribed by the 15.19 commissioner. 15.20 Subd. 3. [PAYMENT.] The state shall begin making payments 15.21 to qualified individuals no later than October 1, 1999. 15.22 Payments made after November 15, 1999, shall bear interest at 15.23 the rate specified in Minnesota Statutes, section 270.75. 15.24 Subd. 4. [ADMINISTRATION OF PAYMENT.] A payment under this 15.25 section shall be treated as "an overpayment of any tax collected 15.26 by the commissioner" for the purposes of Minnesota Statutes, 15.27 section 270.07, subdivision 5, and is subject to recapture under 15.28 Minnesota Statutes, chapter 270A. For administrative audit, 15.29 appeal, and collection purposes, the application for payment is 15.30 considered a claim for refund of 1998 individual income taxes 15.31 under Minnesota Statutes, chapter 289A. 15.32 Subd. 5. [FUNDING.] The amount necessary to make the 15.33 payments and interest required in this section is appropriated 15.34 from the general fund to the commissioner of revenue in fiscal 15.35 year 2000. 15.36 Subd. 6. [APPROPRIATION.] $....... is appropriated in 16.1 fiscal year 2000 from the general fund to the commissioner of 16.2 revenue to administer this section. 16.3 Sec. 2. [ELIMINATE PAYMENTS; TRANSFER RESOURCES.] 16.4 (a) Beginning with fiscal year 2003, no state warrants 16.5 shall be issued under any of the following appropriation or 16.6 program authorizations: Minnesota Statutes 1998, sections 16.7 290A.23, subdivisions 1 and 3; 477A.03, subdivision 2, paragraph 16.8 (d); 477A.013, subdivision 1; 273.1398, subdivision 8; 273.166, 16.9 subdivision 5; 273.138; 477A.05, subdivision 5, paragraph (a); 16.10 69.031, subdivision 3; 473.446, subdivision 1; 469.171, 16.11 subdivision 7a; 477A.03, subdivision 2, paragraph (b); 477A.03, 16.12 subdivision 2, paragraph (c)(i); 273.1382, subdivision 3; 16.13 270.60, subdivision 4, paragraph (d); 273.1385, subdivision 1; 16.14 290B.09, subdivision 2; and 477A.065. 16.15 (b) On or before July 1, 2002, the commissioner of finance 16.16 shall estimate the money that would have been expended in fiscal 16.17 year 2003 under the listed appropriation and 16.18 program-authorization laws, including the inflation adjustments 16.19 for years up to and including fiscal year 2003 under Minnesota 16.20 Statutes, sections 290A.04, subdivision 4; and 477A.03, 16.21 subdivision 3, and shall transfer these amounts to the 16.22 transitional aid reform account which is established in the 16.23 state treasury. 16.24 (c) In addition, the $30,000,000 increase in family 16.25 preservation aid that is provided for aid payable in 2000 under 16.26 Minnesota Statutes 1998, section 477A.03, subdivision 2, 16.27 paragraph (c)(ii), is canceled. That amount shall be annually 16.28 increased for inflation under Minnesota Statutes 1998, section 16.29 477A.03, subdivision 3, and carried forward to fiscal year 16.30 2003. On or before July 1, 2002, the resulting sum, including 16.31 the inflation adjustment for fiscal year 2003, shall be 16.32 transferred to the transitional aid reform account. The related 16.33 reduction in homestead and agricultural credit aid of 16.34 $10,000,000 under Laws 1998, chapter 389, article 2, section 16, 16.35 is canceled. 16.36 Sec. 3. [EFFECTIVE DATE.] 17.1 Sections 1 and 2 are effective the day following final 17.2 enactment.