SF 1219

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 05/11/2018 04:02pm

A bill for an act
relating to taxation; making policy, technical, and clarifying changes to income,
corporate, estate, special, sales, property, and miscellaneous taxes and tax
provisions; amending Minnesota Statutes 2016, sections 13.51, subdivision 2;
69.021, subdivision 5; 270.071, subdivisions 2, 7, 8, by adding a subdivision;
270.072, subdivisions 2, 3, by adding a subdivision; 270.12, by adding a
subdivision; 270.82, subdivision 1; 270A.03, subdivision 5; 270B.14, subdivision
1; 270C.30; 270C.33, subdivisions 5, 8; 270C.34, subdivision 2; 270C.35,
subdivision 3, by adding a subdivision; 270C.38, subdivision 1; 270C.445, by
adding a subdivision; 270C.446, subdivision 5; 270C.72, subdivision 4; 270C.89,
subdivision 1; 271.06, subdivisions 2, 7; 272.02, subdivisions 9, 10; 272.0211,
subdivision 1; 272.025, subdivision 1; 272.029, subdivisions 2, 4, by adding a
subdivision; 272.0295, subdivision 4; 272.115, subdivision 2; 273.061, subdivision
7; 273.08; 273.121, by adding a subdivision; 273.124, subdivision 13; 273.13,
subdivision 22; 273.33, subdivisions 1, 2; 273.371; 273.372, subdivisions 1, 2, 4,
by adding subdivisions; 274.01, subdivision 1; 274.13, subdivision 1; 274.135,
subdivision 3; 275.065, subdivision 1; 275.62, subdivision 2; 278.01, subdivision
1; 282.01, subdivisions 1a, 1d; 287.2205; 289A.08, subdivisions 11, 16, by adding
a subdivision; 289A.09, subdivisions 1, 2; 289A.11, subdivision 1; 289A.12,
subdivision 14; 289A.18, subdivision 1, by adding a subdivision; 289A.20,
subdivision 2; 289A.31, subdivision 1; 289A.35; 289A.37, subdivision 2; 289A.38,
subdivision 6; 289A.50, subdivision 7; 289A.60, subdivision 28, by adding a
subdivision; 289A.63, by adding a subdivision; 290.0672, subdivision 1; 290.068,
subdivision 2; 290.0922, subdivision 2; 290.17, subdivision 2; 290.31, subdivision
1; 290A.19; 290C.03; 291.016, subdivisions 2, 3; 291.03, subdivisions 9, 11;
295.54, subdivision 2; 295.55, subdivision 6; 296A.01, subdivisions 33, 42, by
adding a subdivision; 296A.02, by adding a subdivision; 296A.07, subdivision 1;
296A.22, subdivision 9; 296A.26; 297A.61, subdivision 10; 297A.82, subdivisions
4, 4a; 297D.02; 297E.02, subdivisions 3, 7; 297E.04, subdivision 1; 297E.05,
subdivision 4; 297E.06, subdivision 1; 297F.09, subdivision 1; 297F.23; 297G.09,
subdivision 1; 297G.22; 297H.06, subdivision 2; 297I.05, subdivision 2; 297I.10,
subdivisions 1, 3; 297I.30, by adding a subdivision; 297I.60, subdivision 2; 298.01,
subdivision 4c; 469.319, subdivision 5; 477A.013, by adding a subdivision;
477A.19, by adding subdivisions; 559.202, subdivision 2; 609.5316, subdivision
3; Laws 2014, chapter 308, article 9, section 94; Laws 2016, chapter 187, section
5; proposing coding for new law in Minnesota Statutes, chapters 273; 289A; 290B;
290C; 293; repealing Minnesota Statutes 2016, sections 281.22; 290C.02,
subdivisions 5, 9; 290C.06; Minnesota Rules, parts 8092.1400; 8092.2000;
8100.0700.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

LEGISLATIVE PURPOSE AND INTENT

Section 1. new text begin LEGISLATIVE PURPOSE AND INTENT.
new text end

new text begin This bill contains nonbudget policy and technical provisions that were proposed by the
Department of Revenue during the 2015 and 2016 regular legislative sessions. The provisions
are identical to those passed by the legislature in HF848 during the 2016 regular legislative
session. The effective dates have been updated and other nonsubstantive edits have been
made. The intent of this bill is to recreate, as closely as possible, the agreed-upon policy
and technical provisions of 2016 HF848.
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 2

DEPARTMENT SALES SUPPRESSION PROVISIONS

Section 1.

new text begin [289A.14] USE OF AUTOMATED SALES SUPPRESSION DEVICES;
DEFINITIONS.
new text end

new text begin (a) For the purposes of sections 289A.60, subdivision 32, 289A.63, subdivision 12, and
609.5316, subdivision 3, the following terms have the meanings given.
new text end

new text begin (b) "Automated sales suppression device" or "zapper" means a software program, carried
on any tangible medium, or accessed through any other means, that falsifies the electronic
records of electronic cash registers and other point-of-sale systems including, but not limited
to, transaction data and transaction reports.
new text end

new text begin (c) "Electronic cash register" means a device that keeps a register or supporting documents
through the means of an electronic device or computer system designed to record transaction
data for the purpose of computing, compiling, or processing retail sales transaction data in
whatever manner.
new text end

new text begin (d) "Phantom-ware" means hidden preinstalled or later-installed programming option
embedded in the operating system of an electronic cash register or hardwired into the
electronic cash register that can be used to create a virtual second electronic cash register
or may eliminate or manipulate transaction records that may or may not be preserved in
digital formats to represent the true or manipulated record of transactions in the electronic
cash register.
new text end

new text begin (e) "Transaction data" includes items purchased by a customer, the price of each item,
the taxability determination for each item, a segregated tax amount for each of the taxed
items, the date and time of the purchase, the name, address, and identification number of
the vendor, and the receipt or invoice number of the transaction.
new text end

new text begin (f) "Transaction report" means a report documenting, but not limited to, the sales, taxes
collected, media totals, and discount voids at an electronic cash register that is printed on
cash register tape at the end of a day or shift, or a report documenting every action at an
electronic cash register that is stored electronically.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for activities enumerated in Minnesota
Statutes, section 289A.63, subdivision 12, or 289A.60, subdivision 32, that occur on or after
August 1, 2017.
new text end

Sec. 2.

Minnesota Statutes 2016, section 289A.60, is amended by adding a subdivision to
read:

new text begin Subd. 32. new text end

new text begin Sales suppression. new text end

new text begin (a) A person who:
new text end

new text begin (1) sells;
new text end

new text begin (2) transfers;
new text end

new text begin (3) develops;
new text end

new text begin (4) manufactures; or
new text end

new text begin (5) possesses with the intent to sell or transfer an automated sales suppression device,
zapper, phantom-ware, or similar device capable of being used to commit tax fraud or
suppress sales is liable for a civil penalty calculated under paragraph (b).
new text end

new text begin (b) The amount of the civil penalty equals the greater of (1) $2,000, or (2) the total
amount of all taxes and penalties due that are attributable to the use of any automated sales
suppression device, zapper, phantom-ware, or similar device facilitated by the sale, transfer,
development, or manufacture of the automated sales suppression device, zapper,
phantom-ware, or similar device by the person.
new text end

new text begin (c) The definitions in section 289A.14 apply to this subdivision.
new text end

new text begin (d) This subdivision does not apply to the commissioner, a person acting at the direction
of the commissioner, an agent of the commissioner, law enforcement agencies, or
postsecondary education institutions that possess an automated sales suppression device,
zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated
sales suppression devices, zappers, or phantom-ware.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for activities enumerated that occur on
or after August 1, 2017.
new text end

Sec. 3.

Minnesota Statutes 2016, section 289A.63, is amended by adding a subdivision to
read:

new text begin Subd. 12. new text end

new text begin Felony. new text end

new text begin (a) A person who sells, purchases, installs, transfers, develops,
manufactures, or uses an automated sales suppression device, zapper, phantom-ware, or
similar device knowing that the device or phantom-ware is capable of being used to commit
tax fraud or suppress sales is guilty of a felony and may be sentenced to imprisonment for
not more than five years or to a payment of a fine of not more than $10,000, or both.
new text end

new text begin (b) An automated sales suppression device, zapper, phantom-ware, and any other device
containing an automated sales suppression, zapper, or phantom-ware device or software is
contraband and subject to forfeiture under section 609.5316.
new text end

new text begin (c) The definitions in section 289A.14 apply to this subdivision.
new text end

new text begin (d) This subdivision does not apply to the commissioner, a person acting at the direction
of the commissioner, an agent of the commissioner, law enforcement agencies, or
postsecondary education institutions that possess an automated sales suppression device,
zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated
sales suppression devices, zappers, or phantom-ware.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for activities enumerated that occur on
or after August 1, 2017.
new text end

Sec. 4.

Minnesota Statutes 2016, section 609.5316, subdivision 3, is amended to read:

Subd. 3.

Weapons, telephone cloning paraphernalia, new text begin automated sales suppression
devices, new text end and bullet-resistant vests.

Weapons used are contraband and must be summarily
forfeited to the appropriate agency upon conviction of the weapon's owner or possessor for
a controlled substance crime; for any offense of this chapter or chapter 624, or for a violation
of an order for protection under section 518B.01, subdivision 14. Bullet-resistant vests, as
defined in section 609.486, worn or possessed during the commission or attempted
commission of a crime are contraband and must be summarily forfeited to the appropriate
agency upon conviction of the owner or possessor for a controlled substance crime or for
any offense of this chapter. Telephone cloning paraphernalia used in a violation of section
609.894 new text begin , and automated sales suppression devices, phantom-ware, and other devices
containing an automated sales suppression or phantom-ware device or software used in
violation of section 289A.63, subdivision 12, new text end are contraband and must be summarily forfeited
to the appropriate agency upon a conviction.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for activities enumerated in Minnesota
Statutes, section 289A.63, subdivision 12, that occur on or after August 1, 2017.
new text end

ARTICLE 3

DEPARTMENT POLICY AND TECHNICAL PROVISIONS; INCOME,
CORPORATE FRANCHISE, AND ESTATE TAXES

Section 1.

Minnesota Statutes 2016, section 289A.08, subdivision 11, is amended to read:

Subd. 11.

Information included in income tax return.

(a) The return must state:

(1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the address
of the taxpayer in the same name or names and same address as the taxpayer has used in
making the taxpayer's income tax return to the United States;

(2) the date or dates of birth of the taxpayer or taxpayers;

(3) the Social Security number of the taxpayer, or taxpayers, if a Social Security number
has been issued by the United States with respect to the taxpayers; and

(4) the amount of the taxable income of the taxpayer as it appears on the federal return
for the taxable year to which the Minnesota state return applies.

(b) The taxpayer must attach to the taxpayer's Minnesota state income tax return a copy
of the federal income tax return that the taxpayer has filed or is about to file for the period deleted text begin ,
unless the taxpayer is eligible to telefile the federal return and does file the Minnesota return
by telefiling 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.

Minnesota Statutes 2016, section 289A.08, subdivision 16, is amended to read:

Subd. 16.

Tax refund or return preparers; electronic filing; paper filing fee imposed.

(a) A "tax refund or return preparer," as defined in section 289A.60, deleted text begin subdivision deleted text end deleted text begin 13 deleted text end deleted text begin , paragraph
(f), deleted text end who is a tax return preparer for purposes of section 6011(e) of the Internal Revenue
Code, and who reasonably expects to prepare more than ten Minnesota individual income new text begin ,
corporate franchise, S corporation, partnership, or fiduciary income new text end tax returns for the prior
deleted text begin calendar deleted text end year must file all Minnesota individual income new text begin , corporate franchise, S corporation,
partnership, or fiduciary income new text end tax returns prepared for that deleted text begin calendar deleted text end year by electronic
means.

(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return
that the taxpayer did not want the return filed by electronic means.

(c) For each return that is not filed electronically by a tax refund or return preparer under
this subdivision, including returns filed under paragraph (b), a paper filing fee of $5 is
imposed upon the preparer. The fee is collected from the preparer in the same manner as
income tax. The fee does not apply to returns that the commissioner requires to be filed in
paper form.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 3.

Minnesota Statutes 2016, section 289A.09, subdivision 2, is amended to read:

Subd. 2.

Withholding statement.

(a) A person required to deduct and withhold from
an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, or
who would have been required to deduct and withhold a tax under section 290.92, subdivision
2a or 3, or persons required to withhold tax under section 290.923, subdivision 2, determined
without regard to section 290.92, subdivision 19, if the employee or payee had claimed no
more than one withholding exemption, or who paid wages or made payments not subject
to withholding under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, to an
employee or person receiving royalty payments in excess of $600, or who has entered into
a voluntary withholding agreement with a payee under section 290.92, subdivision 20, must
give every employee or person receiving royalty payments in respect to the remuneration
paid by the person to the employee or person receiving royalty payments during the calendar
year, on or before January 31 of the succeeding year, or, if employment is terminated before
the close of the calendar year, within 30 days after the date of receipt of a written request
from the employee if the 30-day period ends before January 31, a written statement showing
the following:

(1) name of the person;

(2) the name of the employee or payee and the employee's or payee's Social Security
account number;

(3) the total amount of wages as that term is defined in section 290.92, subdivision 1,
paragraph (1); the total amount of remuneration subject to withholding under section 290.92,
subdivision 20; the amount of sick pay as required under section 6051(f) of the Internal
Revenue Code; and the amount of royalties subject to withholding under section 290.923,
subdivision 2; and

(4) the total amount deducted and withheld as tax under section 290.92, subdivision 2a
or 3, or 290.923, subdivision 2.

(b) The statement required to be furnished by paragraph (a) with respect to any
remuneration must be furnished at those times, must contain the information required, and
must be in the form the commissioner prescribes.

(c) The commissioner may prescribe rules providing for reasonable extensions of time,
not in excess of 30 days, to employers or payers required to give the statements to their
employees or payees under this subdivision.

(d) A duplicate of any statement made under this subdivision and in accordance with
rules prescribed by the commissioner deleted text begin , along with a reconciliation in the form the
commissioner prescribes of the statements for the calendar year, including a reconciliation
of the quarterly returns required to be filed under subdivision 1, deleted text end must be filed with the
commissioner on or before deleted text begin February 28 deleted text end new text begin January 31 new text end of the year after the payments were
made.

(e) If an employer cancels the employer's Minnesota withholding account number required
by section 290.92, subdivision 24, the information required by paragraph (d), must be filed
with the commissioner within 30 days of the end of the quarter in which the employer
cancels its account number.

(f) The employer must submit the statements required to be sent to the commissioner deleted text begin in
the same manner required to satisfy the federal reporting requirements of section 6011(e)
of the Internal Revenue Code and the regulations issued under it. An employer must submit
statements to the commissioner required by this section by electronic means if the employer
is required to send more than 25 statements to the commissioner, even though the employer
is not required to submit the returns federally by electronic means. For statements issued
for wages paid in 2011 and after, the threshold is ten. All statements issued for withholding
required under section 290.92 are aggregated for purposes of determining whether the
electronic submission threshold is met deleted text end . new text begin The commissioner shall prescribe the content, format,
and manner of the statement pursuant to section 270C.30.
new text end

(g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph
(a), clause (2), must submit the returns required by this subdivision and subdivision 1,
paragraph (a), with the commissioner by electronic means.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for statements required to be sent to the
commissioner after December 31, 2017, except that the date change in paragraph (d) is
effective for wages paid after December 31, 2016.
new text end

Sec. 4.

Minnesota Statutes 2016, section 289A.12, subdivision 14, is amended to read:

Subd. 14.

deleted text begin Regulated investment companies; deleted text end Reporting new text begin exempt interest and new text end
exempt-interest dividends.

(a) A regulated investment company paying $10 or more in
exempt-interest dividends to an individual who is a resident of Minnesota new text begin , or any person
receiving $10 or more of exempt interest or exempt-interest dividends and paying as nominee
to an individual who is a resident of Minnesota, new text end must make a return indicating the amount
of the new text begin exempt interest or new text end exempt-interest dividends, the name, address, and Social Security
number of the recipient, and any other information that the commissioner specifies. The
return must be provided to the deleted text begin shareholder deleted text end new text begin recipient new text end by February 15 of the year following
the year of the payment. The return provided to the deleted text begin shareholder deleted text end new text begin recipient new text end must include a
clear statement, in the form prescribed by the commissioner, that the new text begin exempt interest or new text end
exempt-interest dividends must be included in the computation of Minnesota taxable income.
By June 1 of each year, the deleted text begin regulated investment company deleted text end new text begin payor new text end must file a copy of the
return with the commissioner.

(b) For purposes of this subdivision, the following definitions apply.

(1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section
852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest
dividends that are not required to be added to federal taxable income under section 290.0131,
subdivision 2, paragraph (b).

(2) "Regulated investment company" means regulated investment company as defined
in section 851(a) of the Internal Revenue Code or a fund of the regulated investment company
as defined in section 851(g) of the Internal Revenue Code.

new text begin (3) "Exempt interest" means income on obligations of any state other than Minnesota,
or a political or governmental subdivision, municipality, or governmental agency or
instrumentality of any state other than Minnesota, and exempt from federal income taxes
under the Internal Revenue Code or any other federal statute.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reports required to be filed after
December 31, 2017.
new text end

Sec. 5.

Minnesota Statutes 2016, section 289A.18, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Annual withholding returns; eligible employers. new text end

new text begin (a) An employer who
deducts and withholds an amount required to be withheld by section 290.92 may file an
annual return and make an annual payment of the amount required to be deducted and
withheld for that calendar year if the employer has received a notification under paragraph
(b). The ability to elect to file an annual return continues through the year following the
year where an employer is required to deduct and withhold more than $500.
new text end

new text begin (b) The commissioner is authorized to determine which employers are eligible to file
an annual return and to notify employers who newly qualify to file an annual return because
the amount an employer is required to deduct and withhold for that calendar year is $500
or less based on the most recent period of four consecutive quarters for which the
commissioner has compiled data on that employer's withholding tax for that period. At the
time of notification, eligible employers may still decide to file returns and make deposits
quarterly. An employer who decides to file returns and make deposits quarterly is required
to make all returns and deposits required by this chapter and, notwithstanding paragraph
(a), is subject to all applicable penalties for failing to do so.
new text end

new text begin (c) If, at the end of any calendar month other than the last month of the calendar year,
the aggregate amount of undeposited tax withheld by an employer who has elected to file
an annual return exceeds $500, the employer must deposit the aggregate amount with the
commissioner within 30 days of the end of the calendar month.
new text end

new text begin (d) If an employer who has elected to file an annual return ceases to pay wages for which
withholding is required, the employer must file a final return and deposit any undeposited
tax within 30 days of the end of the calendar month following the month in which the
employer ceased paying wages.
new text end

new text begin (e) An employer not subject to paragraph (c) or (d) who elects to file an annual return
must file the return and pay the tax not previously deposited before February 1 of the year
following the year in which the tax was withheld.
new text end

new text begin (f) A notification to an employer regarding eligibility to file an annual return under
Minnesota Rules, part 8092.1400, is considered a notification under paragraph (a).
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, 2016.
new text end

Sec. 6.

Minnesota Statutes 2016, section 289A.20, subdivision 2, is amended to read:

Subd. 2.

Withholding from wages, entertainer withholding, withholding from
payments to out-of-state contractors, and withholding by partnerships, small business
corporations, trusts.

(a) new text begin Except as provided in section 289A.18, subdivision 2a, new text end a tax
required to be deducted and withheld during the quarterly period must be paid on or before
the last day of the month following the close of the quarterly period, unless an earlier time
for payment is provided. A tax required to be deducted and withheld from compensation
of an entertainer and from a payment to an out-of-state contractor must be paid on or before
the date the return for such tax must be filed under section 289A.18, subdivision 2. Taxes
required to be deducted and withheld by partnerships, S corporations, and trusts must be
paid on a quarterly basis as estimated taxes under section 289A.25 for partnerships and
trusts and under section 289A.26 for S corporations.

(b) An employer who, during the previous quarter, withheld more than $1,500 of tax
under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, must deposit tax
withheld under those sections with the commissioner within the time allowed to deposit the
employer's federal withheld employment taxes under Code of Federal Regulations, title 26,
section 31.6302-1, as amended through December 31, 2001, without regard to the safe
harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3). Taxpayers
must submit a copy of their federal notice of deposit status to the commissioner upon request
by the commissioner.

(c) The commissioner may prescribe by rule other return periods or deposit requirements.
In prescribing the reporting period, the commissioner may classify payors according to the
amount of their tax liability and may adopt an appropriate reporting period for the class that
the commissioner judges to be consistent with efficient tax collection. In no event will the
duration of the reporting period be more than one year.

(d) If less than the correct amount of tax is paid to the commissioner, proper adjustments
with respect to both the tax and the amount to be deducted must be made, without interest,
in the manner and at the times the commissioner prescribes. If the underpayment cannot be
adjusted, the amount of the underpayment will be assessed and collected in the manner and
at the times the commissioner prescribes.

(e) If the aggregate amount of the tax withheld is $10,000 or more in a fiscal year ending
June 30, the employer must remit each required deposit for wages paid in all subsequent
calendar years by electronic means.

(f) A third-party bulk filer as defined in section 290.92, subdivision 30, paragraph (a),
clause (2), who remits withholding deposits must remit all deposits by electronic means as
provided in paragraph (e), regardless of the aggregate amount of tax withheld during a fiscal
year for all of the employers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 7.

Minnesota Statutes 2016, section 289A.31, subdivision 1, is amended to read:

Subdivision 1.

Individual income, fiduciary income, mining company, corporate
franchise, and entertainment taxes.

(a) Individual income, fiduciary income, mining
company, and corporate franchise taxes, and interest and penalties, must be paid by the
taxpayer upon whom the tax is imposed, except in the following cases:

(1) The tax due from a decedent for that part of the taxable year in which the decedent
died during which the decedent was alive and the taxes, interest, and penalty due for the
prior years must be paid by the decedent's personal representative, if any. If there is no
personal representative, the taxes, interest, and penalty must be paid by the transferees, as
defined in section 270C.58, subdivision 3, to the extent they receive property from the
decedent;

(2) The tax due from an infant or other incompetent person must be paid by the person's
guardian or other person authorized or permitted by law to act for the person;

(3) The tax due from the estate of a decedent must be paid by the estate's personal
representative;

(4) The tax due from a trust, including those within the definition of a corporation, as
defined in section 290.01, subdivision 4, must be paid by a trustee; and

(5) The tax due from a taxpayer whose business or property is in charge of a receiver,
trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge
of the business or property so far as the tax is due to the income from the business or property.

(b) Entertainment taxes are the joint and several liability of the entertainer and the
entertainment entity. The payor is liable to the state for the payment of the tax required to
be deducted and withheld under section 290.9201, subdivision 7, and is not liable to the
entertainer for the amount of the payment.

(c) The deleted text begin tax deleted text end new text begin taxes new text end imposed under deleted text begin section deleted text end new text begin sections 289A.35 and new text end 290.0922 on partnerships
deleted text begin is deleted text end new text begin are new text end the joint and several liability of the partnership and the general partners.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2016, section 289A.35, is amended to read:

289A.35 ASSESSMENTS ON RETURNS.

(a) The commissioner may audit and adjust the taxpayer's computation of federal taxable
income, items of federal tax preferences, or federal credit amounts to make them conform
with the provisions of chapter 290 or section 298.01. If a return has been filed, the
commissioner shall enter the liability reported on the return and may make any audit or
investigation that is considered necessary.

new text begin (b) Upon petition by a taxpayer, and when the commissioner determines that it is in the
best interest of the state, the commissioner may allow S corporations and partnerships to
receive orders of assessment issued under section 270C.33, subdivision 4, on behalf of their
owners, and to pay liabilities shown on such orders. In such cases, the owners' liability must
be calculated using the method provided in section 289A.08, subdivision 7, paragraph (b).
new text end

new text begin (c) A taxpayer may petition the commissioner for the use of the method described in
paragraph (b) after the taxpayer is notified that an audit has been initiated and before an
order of assessment has been issued.
new text end

new text begin (d) A determination of the commissioner under paragraph (b) to grant or deny the petition
of a taxpayer cannot be appealed to the Tax Court or any other court.
new text end

deleted text begin (b) deleted text end new text begin (e) new text end The commissioner may audit and adjust the taxpayer's computation of tax under
chapter 291. In the case of a return filed pursuant to section 289A.10, the commissioner
shall notify the estate no later than nine months after the filing date, as provided by section
289A.38, subdivision 2, whether the return is under examination or the return has been
processed as filed.

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 2016, section 289A.60, subdivision 28, is amended to read:

Subd. 28.

Preparer identification number.

Any Minnesota deleted text begin individual deleted text end income tax return
or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision
13, paragraph (f), shall bear the identification number the preparer is required to use federally
under section 6109(a)(4) of the Internal Revenue Code. A tax refund or return preparer who
prepares a Minnesota deleted text begin individual income tax deleted text end return new text begin required by section 289A.08, subdivisions
1, 2, 3, and 7; or 289A.12, subdivision 3, new text end or claim for refund and fails to include the required
number on the return or claim is subject to a penalty of $50 for each failure.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 10.

Minnesota Statutes 2016, section 290.0672, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Long-term care insurance" means a policy that:

(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding
the deleted text begin 7.5 percent deleted text end new text begin adjusted gross new text end income test; or meets the requirements given in section 62A.46;
or provides similar coverage issued under the laws of another jurisdiction; and

(2) has a lifetime long-term care benefit limit of not less than $100,000; and

(3) has been offered in compliance with the inflation protection requirements of section
62S.23.

(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.

(d) "Premiums deducted in determining federal taxable income" means the lesser of (1)
long-term care insurance premiums that qualify as deductions under section 213 of the
Internal Revenue Code; and (2) the total amount deductible for medical care under section
213 of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2012.
new text end

Sec. 11.

Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For purposes of this section, the following terms have the meanings
given.

(a) "Qualified research expenses" means (i) qualified research expenses and basic research
payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does
not include expenses incurred for qualified research or basic research conducted outside
the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and
(ii) contributions to a nonprofit corporation established and operated pursuant to the
provisions of chapter 317A for the purpose of promoting the establishment and expansion
of business in this state, provided the contributions are invested by the nonprofit corporation
for the purpose of providing funds for small, technologically innovative enterprises in
Minnesota during the early stages of their development.

(b) "Qualified research" means qualified research as defined in section 41(d) of the
Internal Revenue Code, except that the term does not include qualified research conducted
outside the state of Minnesota.

(c) "Base amount" means base amount as defined in section 41(c) of the Internal Revenue
Code, except that the average annual gross receipts new text begin and aggregate gross receipts new text end must be
calculated using Minnesota sales or receipts under section 290.191 and the definitions
contained in deleted text begin clauses deleted text end new text begin paragraphs new text end (a) and (b) shall apply.

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.

Minnesota Statutes 2016, section 290.17, subdivision 2, is amended to read:

Subd. 2.

Income not derived from conduct of a trade or business.

The income of a
taxpayer subject to the allocation rules that is not derived from the conduct of a trade or
business must be assigned in accordance with paragraphs (a) to (f):

(a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in section
3401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to the extent
that, the work of the employee is performed within it; all other income from such sources
is treated as income from sources without this state.

Severance pay shall be considered income from labor or personal or professional services.

(2) In the case of an individual who is a nonresident of Minnesota and who is an athlete
or entertainer, income from compensation for labor or personal services performed within
this state shall be determined in the following manner:

(i) The amount of income to be assigned to Minnesota for an individual who is a
nonresident salaried athletic team employee shall be determined by using a fraction in which
the denominator contains the total number of days in which the individual is under a duty
to perform for the employer, and the numerator is the total number of those days spent in
Minnesota. For purposes of this paragraph, off-season training activities, unless conducted
at the team's facilities as part of a team imposed program, are not included in the total number
of duty days. Bonuses earned as a result of play during the regular season or for participation
in championship, play-off, or all-star games must be allocated under the formula. Signing
bonuses are not subject to allocation under the formula if they are not conditional on playing
any games for the team, are payable separately from any other compensation, and are
nonrefundable; and

(ii) The amount of income to be assigned to Minnesota for an individual who is a
nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's
athletic or entertainment performance in Minnesota shall be determined by assigning to this
state all income from performances or athletic contests in this state.

(3) For purposes of this section, amounts received by a nonresident as "retirement income"
as defined in section (b)(1) of the State Income Taxation of Pension Income Act, Public
Law 104-95, are not considered income derived from carrying on a trade or business or
from wages or other compensation for work an employee performed in Minnesota, and are
not taxable under this chapter.

(b) Income or gains from tangible property located in this state that is not employed in
the business of the recipient of the income or gains must be assigned to this state.

(c) Income or gains from intangible personal property not employed in the business of
the recipient of the income or gains must be assigned to this state if the recipient of the
income or gains is a resident of this state or is a resident trust or estate.

Gain on the sale of a partnership interest is allocable to this state in the ratio of the
original cost of partnership tangible property in this state to the original cost of partnership
tangible property everywhere, determined at the time of the sale. If more than 50 percent
of the value of the partnership's assets consists of intangibles, gain or loss from the sale of
the partnership interest is allocated to this state in accordance with the sales factor of the
partnership for its first full tax period immediately preceding the tax period of the partnership
during which the partnership interest was sold.

Gain on the sale of an interest in a single member limited liability company that is
disregarded for federal income tax purposes is allocable to this state as if the single member
limited liability company did not exist and the assets of the limited liability company are
personally owned by the sole member.

Gain on the sale of goodwill or income from a covenant not to compete that is connected
with a business operating all or partially in Minnesota is allocated to this state to the extent
that the income from the business in the year preceding the year of sale was deleted text begin assignable deleted text end new text begin
allocable new text end to Minnesota under subdivision 3.

When an employer pays an employee for a covenant not to compete, the income allocated
to this state is in the ratio of the employee's service in Minnesota in the calendar year
preceding leaving the employment of the employer over the total services performed by the
employee for the employer in that year.

(d) Income from winnings on a bet made by an individual while in Minnesota is assigned
to this state. In this paragraph, "bet" has the meaning given in section 609.75, subdivision
2, as limited by section 609.75, subdivision 3, clauses (1), (2), and (3).

(e) All items of gross income not covered in paragraphs (a) to (d) and not part of the
taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.

(f) For the purposes of this section, working as an employee shall not be considered to
be conducting a trade or business.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13.

Minnesota Statutes 2016, section 290.31, subdivision 1, is amended to read:

Subdivision 1.

Partners, not partnership, subject to tax.

new text begin Except as provided under
section 289A.35, paragraph (b), new text end a partnership as such shall not be subject to the income tax
imposed by this chapter, but is subject to the tax imposed under section 290.0922. Persons
carrying on business as partners shall be liable for income tax only in their separate or
individual capacities.

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.

Minnesota Statutes 2016, section 290A.19, is amended to read:

290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.

new text begin (a) new text end The owner or managing agent of any property for which rent is paid for occupancy
as a homestead must furnish a certificate of rent paid to a person who is a renter on December
31, in the form prescribed by the commissioner. If the renter moves before December 31,
the owner or managing agent may give the certificate to the renter at the time of moving,
or mail the certificate to the forwarding address if an address has been provided by the
renter. The certificate must be made available to the renter before February 1 of the year
following the year in which the rent was paid. The owner or managing agent must retain a
duplicate of each certificate or an equivalent record showing the same information for a
period of three years. The duplicate or other record must be made available to the
commissioner upon request.

new text begin (b) The commissioner may require the owner or managing agent, through a simple
process, to furnish to the commissioner on or before March 1 a copy of each certificate of
rent paid furnished to a renter for rent paid in the prior year, in the content, format, and
manner prescribed by the commissioner pursuant to section 270C.30. Prior to implementation,
the commissioner, after consulting with representatives of owners or managing agents, shall
develop an implementation and administration plan for the requirements of this paragraph
that attempts to minimize financial burdens, administration and compliance costs, and takes
into consideration existing systems of owners and managing agents.
new text end

new text begin (c) new text end For the purposes of this section, "owner" includes a park owner as defined under
section 327C.01, subdivision 6, and "property" includes a lot as defined under section
327C.01, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for certificates of rent paid furnished to
a renter for rent paid after December 31, 2016.
new text end

Sec. 15.

Minnesota Statutes 2016, section 291.016, subdivision 2, is amended to read:

Subd. 2.

Additions.

The following amounts, to the extent deducted in computing new text begin or
otherwise excluded from new text end the federal taxable estate, must be added in computing the
Minnesota taxable estate:

(1) the amount of the deduction for state death taxes allowed under section 2058 of the
Internal Revenue Code;

(2) the amount of the deduction for foreign death taxes allowed under section 2053(d)
of the Internal Revenue Code; and

(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal
Revenue Code, made by the decedent within three years of the date of death. For purposes
of this clause, the amount of the addition equals the value of the gift under section 2512 of
the Internal Revenue Code and excludes any value of the gift included in the federal estate.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after June 30, 2013.
new text end

Sec. 16.

Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read:

Subd. 3.

Subtraction.

new text begin The following amounts, to the extent included in computing the
federal taxable estate, may be subtracted in computing the Minnesota taxable estate but
must not reduce the Minnesota taxable estate to less than zero:
new text end

new text begin (1) the value of property subject to an election under section 291.03, subdivision 1d;
and
new text end

new text begin (2) new text end the value of qualified small business property under section 291.03, subdivision 9,
and the value of qualified farm property under section 291.03, subdivision 10, or the result
of $5,000,000 minus the amount for the year of death listed in deleted text begin clauses (1) to (5) deleted text end new text begin items (i)
to (v) new text end , whichever is less deleted text begin , may be subtracted in computing the Minnesota taxable estate but
must not reduce the Minnesota taxable estate to less than zero deleted text end :

deleted text begin (1) deleted text end new text begin (i) new text end $1,200,000 for estates of decedents dying in 2014;

deleted text begin (2) deleted text end new text begin (ii) new text end $1,400,000 for estates of decedents dying in 2015;

deleted text begin (3) deleted text end new text begin (iii) new text end $1,600,000 for estates of decedents dying in 2016;

deleted text begin (4) deleted text end new text begin (iv) new text end $1,800,000 for estates of decedents dying in 2017; and

deleted text begin (5) deleted text end new text begin (v) new text end $2,000,000 for estates of decedents dying in 2018 and thereafter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after June 30, 2011.
new text end

Sec. 17.

Minnesota Statutes 2016, section 291.03, subdivision 9, is amended to read:

Subd. 9.

Qualified small business property.

Property satisfying all of the following
requirements is qualified small business property:

(1) The value of the property was included in the federal adjusted taxable estate.

(2) The property consists of the assets of a trade or business or shares of stock or other
ownership interests in a corporation or other entity engaged in a trade or business. Shares
of stock in a corporation or an ownership interest in another type of entity do not qualify
under this subdivision if the shares or ownership interests are traded on a public stock
exchange at any time during the three-year period ending on the decedent's date of death.
For purposes of this subdivision, an ownership interest includes the interest the decedent is
deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code.

(3) During the taxable year that ended before the decedent's death, the trade or business
must not have been a passive activity within the meaning of section 469(c) of the Internal
Revenue Code, and the decedent or the decedent's spouse must have materially participated
in the trade or business within the meaning of section 469(h) of the Internal Revenue Code,
excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided
by United States Treasury Department regulation that substitutes material participation in
prior taxable years for material participation in the taxable year that ended before the
decedent's death.

(4) The gross annual sales of the trade or business were $10,000,000 or less for the last
taxable year that ended before the date of the death of the decedent.

(5) The property does not deleted text begin consist of deleted text end new text begin include:
new text end

new text begin (i) new text end cash deleted text begin , deleted text end new text begin ;
new text end

new text begin (ii) new text end cash equivalents deleted text begin , deleted text end new text begin ;
new text end

new text begin (iii) new text end publicly traded securities deleted text begin , deleted text end new text begin ; new text end or

new text begin (iv) any new text end assets not used in the operation of the trade or business.

new text begin (6) new text end For property consisting of shares of stock or other ownership interests in an entity,
the value of deleted text begin cash, cash equivalents, publicly traded securities, or assets not used in the
operation of the trade or business held by the corporation or other entity deleted text end new text begin items described in
clause (5) new text end must be deleted text begin deducted from the value of the property qualifying under this subdivision
in proportion to the decedent's share of ownership of the entity on the date of death deleted text end new text begin excluded
in the valuation of the decedent's interest in the entity new text end .

deleted text begin (6) deleted text end new text begin (7) new text end The decedent continuously owned the property, including property the decedent
is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for
the three-year period ending on the date of death of the decedent. In the case of a sole
proprietor, if the property replaced similar property within the three-year period, the
replacement property will be treated as having been owned for the three-year period ending
on the date of death of the decedent.

deleted text begin (7) deleted text end new text begin (8) new text end For three years following the date of death of the decedent, the trade or business
is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code,
and a family member materially participates in the operation of the trade or business within
the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3)
of the Internal Revenue Code and any other provision provided by United States Treasury
Department regulation that substitutes material participation in prior taxable years for
material participation in the three years following the date of death of the decedent.

deleted text begin (8) deleted text end new text begin (9) new text end The estate and the qualified heir elect to treat the property as qualified small
business property and agree, in the form prescribed by the commissioner, to pay the recapture
tax under subdivision 11, if applicable.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after June 30, 2011.
new text end

Sec. 18.

Minnesota Statutes 2016, section 291.03, subdivision 11, is amended to read:

Subd. 11.

Recapture tax.

(a) If, within three years after the decedent's death and before
the death of the qualified heir, the qualified heir disposes of any interest in the qualified
property, other than by a disposition to a family member, or a family member ceases to
satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional estate
tax is imposed on the property. In the case of a sole proprietor, if the qualified heir replaces
qualified small business property excluded under subdivision 9 with similar property, then
the qualified heir will not be treated as having disposed of an interest in the qualified property.

(b) The amount of the additional tax equals the amount of the exclusion claimed by the
estate under subdivision 8, paragraph (d), multiplied by 16 percent.

(c) The additional tax under this subdivision is due on the day which is six months after
the date of the disposition or cessation in paragraph (a).

new text begin (d) This subdivision shall not apply as a result of any of the following:
new text end

new text begin (1) a portion of qualified farm property consisting of less than one-fifth of the acreage
of the property is reclassified as class 2b property under section 273.13, subdivision 23, and
the qualified heir has not substantially altered the reclassified property during the three-year
holding period; or
new text end

new text begin (2) a portion of qualified farm property classified as 2a property at the death of the
decedent pursuant to section 273.13, subdivision 23, paragraph (a), consisting of a residence,
garage, and immediately surrounding one acre of land is reclassified as 4bb property during
the three-year holding period, and the qualified heir has not substantially altered the property.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after June 30, 2011.
new text end

Sec. 19. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Rules, part 8092.1400, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, part 8092.2000, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective for taxable years beginning after
December 31, 2016, except that notifications from the Department of Revenue to employers
regarding eligibility to file an annual return for taxes withheld in calendar year 2017 remain
in force. Paragraph (b) is effective the day following final enactment.
new text end

ARTICLE 4

DEPARTMENT POLICY AND TECHNICAL PROVISIONS; SPECIAL TAXES
AND SALES AND USE TAXES

Section 1.

Minnesota Statutes 2016, section 69.021, subdivision 5, is amended to read:

Subd. 5.

Calculation of state aid.

(a) The amount of fire state aid available for
apportionment, before the addition of the minimum fire state aid allocation amount under
subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state upon
the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the
commissioner by insurers on the Minnesota Firetown Premium Report. This amount must
be reduced by the amount required to pay the state auditor's costs and expenses of the audits
or exams of the firefighters relief associations.

The total amount for apportionment in respect to fire state aid must not be less than two
percent of the premiums reported to the commissioner by insurers on the Minnesota Firetown
Premium Report after subtracting the following amounts:

(1) the amount required to pay the state auditor's costs and expenses of the audits or
exams of the firefighters relief associations; and

(2) one percent of the premiums reported by deleted text begin town and farmers' deleted text end new text begin township new text end mutual insurance
companies and mutual property and casualty companies with total assets of $5,000,000 or
less.

(b) The total amount for apportionment as police state aid is equal to 104 percent of the
amount of premium taxes paid to the state on the premiums reported to the commissioner
by insurers on the Minnesota Aid to Police Premium Report. The total amount for
apportionment in respect to the police state aid program must not be less than two percent
of the amount of premiums reported to the commissioner by insurers on the Minnesota Aid
to Police Premium Report.

(c) The commissioner shall calculate the percentage of increase or decrease reflected in
the apportionment over or under the previous year's available state aid using the same
premiums as a basis for comparison.

(d) In addition to the amount for apportionment of police state aid under paragraph (b),
each year $100,000 must be apportioned for police state aid. An amount sufficient to pay
this increase is annually appropriated from the general fund.

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 2016, section 289A.38, subdivision 6, is amended to read:

Subd. 6.

Omission in excess of 25 percent.

Additional taxes may be assessed within
6-1/2 years after the due date of the return or the date the return was filed, whichever is
later, if:

(1) the taxpayer omits from gross income an amount properly includable in it that is in
excess of 25 percent of the amount of gross income stated in the return;

(2) the taxpayer omits from a sales, use, or withholding tax return new text begin , or a return for a tax
imposed under section 295.52, new text end an amount of taxes in excess of 25 percent of the taxes
reported in the return; or

(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the gross
estate reported in the return.

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 2016, section 290.0922, subdivision 2, is amended to read:

Subd. 2.

Exemptions.

The following entities are exempt from the tax imposed by this
section:

(1) corporations exempt from tax under section 290.05;

(2) real estate investment trusts;

(3) regulated investment companies or a fund thereof; and

(4) entities having a valid election in effect under section 860D(b) of the Internal Revenue
Code;

(5) deleted text begin town and farmers' deleted text end new text begin township new text end mutual insurance companies;

(6) cooperatives organized under chapter 308A or 308B that provide housing exclusively
to persons age 55 and over and are classified as homesteads under section 273.124,
subdivision 3; and

(7) a qualified business as defined under section 469.310, subdivision 11, if for the
taxable year all of its property is located in a job opportunity building zone designated under
section 469.314 and all of its payroll is a job opportunity building zone payroll under section
469.310.

Entities not specifically exempted by this subdivision are subject to tax under this section,
notwithstanding section 290.05.

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 2016, section 295.54, subdivision 2, is amended to read:

Subd. 2.

Pharmacy refund.

A pharmacy may claim an annual refund against the total
amount of tax, if any, the pharmacy owes during that calendar year under section 295.52,
subdivision 4. The refund shall equal the amount paid by the pharmacy to a wholesale drug
distributor subject to tax under section 295.52, subdivision 3, for legend drugs delivered by
the pharmacy outside of Minnesota, multiplied by the tax percentage specified in section
295.52, subdivision 3. If the amount of the refund exceeds the tax liability of the pharmacy
under section 295.52, subdivision 4, the commissioner shall provide the pharmacy with a
refund equal to the excess amount. Each qualifying pharmacy must apply for the refund on
the annual return as deleted text begin provided under section 295.55, subdivision 5 deleted text end new text begin prescribed by the
commissioner, on or before March 15 of the year following the calendar year the legend
drugs were delivered outside Minnesota new text end . The refund deleted text begin must be claimed within 18 months
from the date the drugs were delivered outside of Minnesota deleted text end new text begin shall not be allowed if the
initial claim for refund is filed more than one year after the original due date of the return new text end .
Interest on refunds paid under this subdivision will begin to accrue 60 days after the date a
claim for refund is filed. For purposes of this subdivision, the date a claim is filed is the due
date of the return if a return is due or the date of the actual claim for refund, whichever is
later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for qualifying legend drugs delivered
outside Minnesota after December 31, 2017.
new text end

Sec. 5.

Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to
read:

new text begin Subd. 9a. new text end

new text begin Bulk storage or bulk storage facility. new text end

new text begin "Bulk storage" or "bulk storage facility"
means a single property, or contiguous or adjacent properties used for a common purpose
and owned or operated by the same person, on or in which are located one or more stationary
tanks that are used singularly or in combination for the storage or containment of more than
1,100 gallons of petroleum.
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.

Minnesota Statutes 2016, section 296A.01, subdivision 33, is amended to read:

Subd. 33.

Motor fuel.

"Motor fuel" means a liquid new text begin or gaseous form of fuel new text end , regardless
of its composition or properties, used to propel a motor vehicle.

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 2016, section 296A.01, subdivision 42, is amended to read:

Subd. 42.

Petroleum products.

"Petroleum products" means all of the products defined
in subdivisions 2, 7, 8, 8a, new text begin 8b, new text end 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2016, section 296A.07, subdivision 1, is amended to read:

Subdivision 1.

Tax imposed.

There is imposed an excise tax on gasoline, gasoline
blended with ethanol, and agricultural alcohol gasoline used in producing and generating
power for propelling motor vehicles used on the public highways of this state. The tax is
imposed on the first licensed distributor who received the product in Minnesota. For purposes
of this section, gasoline is defined in section 296A.01, subdivisions new text begin 8b, new text end 10, 18, 20, 23, 24,
25, 32, and 34. The tax is payable at the time and in the form and manner prescribed by the
commissioner. The tax is payable at the rates specified in subdivision 3, subject to the
exceptions and reductions specified in section 296A.17.

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 2016, section 297A.61, subdivision 10, is amended to read:

Subd. 10.

Tangible personal property.

(a) "Tangible personal property" means personal
property that can be seen, weighed, measured, felt, or touched, or that is in any other manner
perceptible to the senses. "Tangible personal property" includes, but is not limited to,
electricity, water, gas, steam, and prewritten computer software.

(b) Tangible personal property does not include:

deleted text begin (1) large ponderous machinery and equipment used in a business or production activity
which at common law would be considered to be real property;
deleted text end

deleted text begin (2) deleted text end new text begin (1) new text end property which is subject to an ad valorem property tax;

deleted text begin (3) deleted text end new text begin (2) new text end property described in section 272.02, subdivision 9, clauses (a) to (d);

deleted text begin (4) deleted text end new text begin (3) new text end property described in section 272.03, subdivision 2, clauses (3) and (5); and

deleted text begin (5) deleted text end new text begin (4) new text end specified digital products, or other digital products, transferred electronically.

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 2016, section 297A.82, subdivision 4, is amended to read:

Subd. 4.

Exemptions.

(a) The following transactions are exempt from the tax imposed
in this chapter to the extent provided.

(b) The purchase or use of aircraft previously registered in Minnesota by a corporation
or partnership is exempt if the transfer constitutes a transfer within the meaning of section
351 or 721 of the Internal Revenue Code.

(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer of
an aircraft for which a commercial use permit has been issued pursuant to section 360.654
is exempt, if the aircraft is resold while the permit is in effect.

(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by airline
companies, as defined in section 270.071, subdivision 4, is exempt. For purposes of this
subdivision, "air flight equipment" includes airplanes and parts necessary for the repair and
maintenance of such air flight equipment, and flight simulators, but does not include deleted text begin airplanes deleted text end new text begin
aircraft new text end with a deleted text begin gross deleted text end new text begin maximum takeoff new text end weight of less than 30,000 pounds deleted text begin that are used on
intermittent or irregularly timed flights deleted text end .

(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined in
section 360.511 and approved by the Federal Aviation Administration, and which the seller
delivers to a purchaser outside Minnesota or which, without intermediate use, is shipped or
transported outside Minnesota by the purchaser are exempt, but only if the purchaser is not
a resident of Minnesota and provided that the aircraft is not thereafter returned to a point
within Minnesota, except in the course of interstate commerce or isolated and occasional
use, and will be registered in another state or country upon its removal from Minnesota.
This exemption applies even if the purchaser takes possession of the aircraft in Minnesota
and uses the aircraft in the state exclusively for training purposes for a period not to exceed
ten days prior to removing the aircraft from this state.

(f) The sale or purchase of the following items that relate to aircraft operated under
Federal Aviation Regulations, Parts 91 and 135, and associated installation charges:
equipment and parts necessary for repair and maintenance of aircraft; and equipment and
parts to upgrade and improve aircraft.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
December 31, 2017.
new text end

Sec. 11.

Minnesota Statutes 2016, section 297A.82, subdivision 4a, is amended to read:

Subd. 4a.

Deposit in state airports fund.

Tax revenue new text begin , including interest and penalties, new text end
collected from the sale or purchase of an aircraft taxable under this chapter must be deposited
in the state airports fund established in section 360.017. new text begin For purposes of this subdivision,
"revenue" does not include the revenue, including interest and penalties, generated by the
sales tax imposed under section 297A.62, subdivision 1a, which must be deposited as
provided under article XI, section 15, of the Minnesota Constitution.
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.

Minnesota Statutes 2016, section 297E.02, subdivision 7, is amended to read:

Subd. 7.

Untaxed gambling product.

(a) In addition to penalties or criminal sanctions
imposed by this chapter, a person, organization, or business entity possessing or selling a
pull-tab, electronic pull-tab game, raffle board, or tipboard upon which the tax imposed by
this chapter has not been paid is liable for a tax of six percent of the ideal gross of each
pull-tab, electronic pull-tab game, raffle board, or tipboard. The tax on a partial deal must
be assessed as if it were a full deal.

(b) In addition to penalties and criminal sanctions imposed by this chapter, a person new text begin (1) new text end
not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, raffles,
or paddlewheel games new text begin , or (2) who conducts gambling prohibited under sections 609.75 to
609.763, other than activities subject to tax under section 297E.03, new text end is liable for a tax of six
percent of the gross receipts from that activity.

(c) The tax deleted text begin must deleted text end new text begin may new text end be assessed by the commissioner. An assessment must be considered
a jeopardy assessment or jeopardy collection as provided in section 270C.36. The
commissioner shall assess the tax based on personal knowledge or information available to
the commissioner. The commissioner shall mail to the taxpayer at the taxpayer's last known
address, or serve in person, a written notice of the amount of tax, demand its immediate
payment, and, if payment is not immediately made, collect the tax by any method described
in chapter 270C, except that the commissioner need not await the expiration of the times
specified in chapter 270C. The tax assessed by the commissioner is presumed to be valid
and correctly determined and assessed. The burden is upon the taxpayer to show its
incorrectness or invalidity. The tax imposed under this subdivision does not apply to gambling
that is exempt from taxation under subdivision 2.

new text begin (d) A person, organization, or business entity conducting gambling activity under this
subdivision must file monthly tax returns with the commissioner, in the form required by
the commissioner. The returns must be filed on or before the 20th day of the month following
the month in which the gambling activity occurred. The tax imposed by this section is due
and payable at the time when the returns are required to be filed.
new text end

new text begin (e) Notwithstanding any law to the contrary, neither the commissioner nor a public
employee may reveal facts contained in a tax return filed with the commissioner of revenue
as required by this subdivision, nor can any information contained in the report or return
be used against the tax obligor in any criminal proceeding, unless independently obtained,
except in connection with a proceeding involving taxes due under this section, or as provided
in section 270C.055, subdivision 1. However, this paragraph 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. Any person violating this paragraph is guilty
of a gross misdemeanor.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for games played or purchased after June
30, 2017.
new text end

Sec. 13.

Minnesota Statutes 2016, section 297H.06, subdivision 2, is amended to read:

Subd. 2.

Materials.

The tax is not imposed upon charges to generators of mixed municipal
solid waste or upon the volume of nonmixed municipal solid waste for waste management
services to manage the following materials:

(1) mixed municipal solid waste and nonmixed municipal solid waste generated outside
of Minnesota;

(2) recyclable materials that are separated for recycling by the generator, collected
separately from other waste, and recycled, to the extent the price of the service for handling
recyclable material is separately itemized new text begin on a bill to the generator new text end ;

(3) recyclable nonmixed municipal solid waste that is separated for recycling by the
generator, collected separately from other waste, delivered to a waste facility for the purpose
of recycling, and recycled;

(4) industrial waste, when it is transported to a facility owned and operated by the same
person that generated it;

(5) mixed municipal solid waste from a recycling facility that separates or processes
recyclable materials and reduces the volume of the waste by at least 85 percent, provided
that the exempted waste is managed separately from other waste;

(6) recyclable materials that are separated from mixed municipal solid waste by the
generator, collected and delivered to a waste facility that recycles at least 85 percent of its
waste, and are collected with mixed municipal solid waste that is segregated in leakproof
bags, provided that the mixed municipal solid waste does not exceed five percent of the
total weight of the materials delivered to the facility and is ultimately delivered to a waste
facility identified as a preferred waste management facility in county solid waste plans
under section 115A.46;

(7) source-separated compostable deleted text begin waste deleted text end new text begin materials new text end , if the deleted text begin waste is deleted text end new text begin materials are new text end delivered
to a facility exempted as described in this clause. To initially qualify for an exemption, a
facility must apply for an exemption in its application for a new or amended solid waste
permit to the Pollution Control Agency. The first time a facility applies to the agency it
must certify in its application that it will comply with the criteria in items (i) to (v) and the
commissioner of the agency shall so certify to the commissioner of revenue who must grant
the exemption. The facility must annually apply to the agency for certification to renew its
exemption for the following year. The application must be filed according to the procedures
of, and contain the information required by, the agency. The commissioner of revenue shall
grant the exemption if the commissioner of the Pollution Control Agency finds and certifies
to the commissioner of revenue that based on an evaluation of the composition of incoming
waste and residuals and the quality and use of the product:

(i) generators separate materials at the source;

(ii) the separation is performed in a manner appropriate to the technology specific to the
facility that:

(A) maximizes the quality of the product;

(B) minimizes the toxicity and quantity of deleted text begin residuals deleted text end new text begin rejects new text end ; and

(C) provides an opportunity for significant improvement in the environmental efficiency
of the operation;

(iii) the operator of the facility educates generators, in coordination with each county
using the facility, about separating the waste to maximize the quality of the waste stream
for technology specific to the facility;

(iv) process deleted text begin residuals deleted text end new text begin rejects new text end do not exceed 15 percent of the weight of the total material
delivered to the facility; and

(v) the final product is accepted for use;

(8) waste and waste by-products for which the tax has been paid; and

(9) daily cover for landfills that has been approved in writing by the Minnesota Pollution
Control Agency.

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.

Minnesota Statutes 2016, section 297I.05, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Town and farmers' deleted text end new text begin Township new text end mutual insurance.

A tax is imposed on deleted text begin town
and farmers' deleted text end new text begin township new text end mutual insurance companies. The rate of tax is equal to one percent
of gross premiums less return premiums on all direct business received by the insurer or
agents of the insurer in Minnesota, in cash or otherwise, during the year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 15.

Minnesota Statutes 2016, section 297I.10, subdivision 1, is amended to read:

Subdivision 1.

Cities of the first class.

(a) The commissioner shall order and direct a
surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross
premiums, less return premiums, on all direct business received by any licensed foreign or
domestic fire insurance company on property in a city of the first class, or by its agents for
it, in cash or otherwise.

(b) By July 31 and December 31 of each year, the commissioner deleted text begin of management and
budget deleted text end shall pay to each city of the first class a warrant for an amount equal to the total
amount of the surcharge on the premiums collected within that city since the previous
payment.

(c) The treasurer of the city shall place the money received under this subdivision in a
special account or fund to defray all or a portion of the employer contribution requirement
of public employees police and fire plan coverage for city firefighters.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 16.

Minnesota Statutes 2016, section 297I.10, subdivision 3, is amended to read:

Subd. 3.

Appropriation.

The amount necessary to make the payments required under
this section is appropriated to the commissioner deleted text begin of management and budget deleted text end from the general
fund.

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.

Minnesota Statutes 2016, section 298.01, subdivision 4c, is amended to read:

Subd. 4c.

Special deductions; net operating loss.

deleted text begin (a) deleted text end For purposes of determining
taxable income under subdivision 4, the provisions of sections 290.0133, subdivisions 7
and 9, and 290.0134, subdivisions 7 and 9, are not used to determine taxable income.

deleted text begin (b) The amount of net operating loss incurred in a taxable year beginning before January
1, 1990, that may be carried over to a taxable year beginning after December 31, 1989, is
the amount of net operating loss carryover determined in the calculation of the hypothetical
corporate franchise tax under Minnesota Statutes 1988, sections 298.40 and 298.402.
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

ARTICLE 5

DEPARTMENT OF REVENUE TECHNICAL AND POLICY; PROPERTY TAX
PROVISIONS

Section 1.

Minnesota Statutes 2016, section 13.51, subdivision 2, is amended to read:

Subd. 2.

Income property assessment data.

The following data collected by political
subdivisions new text begin and the state new text end from individuals or business entities concerning income properties
are classified as private or nonpublic data pursuant to section 13.02, subdivisions 9 and 12:

(a) detailed income and expense figures;

(b) average vacancy factors;

(c) verified net rentable areas or net usable areas, whichever is appropriate;

(d) anticipated income and expenses;

(e) projected vacancy factors; and

(f) lease information.

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 2016, section 270.071, subdivision 2, is amended to read:

Subd. 2.

Air commerce.

deleted text begin (a) deleted text end "Air commerce" means the transportation by aircraft of
persons or property for hire in interstate, intrastate, or international transportation on regularly
scheduled flights or on intermittent or irregularly timed flights by airline companies new text begin and
includes transportation by any airline company making three or more flights in or out of
Minnesota, or within Minnesota, during a calendar year new text end .

deleted text begin (b) "Air commerce" includes but is not limited to an intermittent or irregularly timed
flight, a flight arranged at the convenience of an airline and the person contracting for the
transportation, or a charter flight. It includes any airline company making three or more
flights in or out of Minnesota during a calendar year.
deleted text end

deleted text begin (c) "Air commerce" does not include casual transportation for hire by aircraft commonly
owned and used for private air flight purposes if the person furnishing the transportation
does not hold out to be engaged regularly in transportation for hire.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2016, section 270.071, subdivision 7, is amended to read:

Subd. 7.

Flight property.

"Flight property" means all aircraft and flight equipment used
in connection therewith, including spare flight equipment. Flight property also includes
computers and computer software used in operating, controlling, or regulating aircraft and
flight equipment. new text begin Flight property does not include aircraft with a maximum takeoff weight
of less than 30,000 pounds.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2016, section 270.071, subdivision 8, is amended to read:

Subd. 8.

Person.

"Person" means deleted text begin any deleted text end new text begin an new text end individual, deleted text begin corporation, firm, copartnership,
company, or association, and includes any guardian, trustee, executor, administrator, receiver,
conservator, or any person acting in any fiduciary capacity therefor deleted text end new text begin trust, estate, fiduciary,
partnership, company, corporation, limited liability company, association, governmental
unit or agency, public or private organization of any kind, or other legal entity new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2016, section 270.071, is amended by adding a subdivision to
read:

new text begin Subd. 10. new text end

new text begin Intermittent or irregularly timed flights. new text end

new text begin "Intermittently or irregularly timed
flights" means any flight in which the departure time, departure location, and arrival location
are specifically negotiated with the customer or the customer's representative, including but
not limited to charter flights.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2016, section 270.072, subdivision 2, is amended to read:

Subd. 2.

Assessment of flight property.

Flight property that is owned by, or is leased,
loaned, or otherwise made available to an airline company operating in Minnesota shall be
assessed and appraised annually by the commissioner with reference to its value on January
2 of the assessment year in the manner prescribed by sections 270.071 to 270.079. deleted text begin Aircraft
with a gross weight of less than 30,000 pounds and used on intermittent or irregularly timed
flights shall be excluded from the provisions of sections 270.071 to 270.079.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 7.

Minnesota Statutes 2016, section 270.072, subdivision 3, is amended to read:

Subd. 3.

Report by airline company.

new text begin (a) new text end Each year, on or before July 1, every airline
company engaged in air commerce in this state shall file with the commissioner a report
under oath setting forth specifically the information prescribed by the commissioner to
enable the commissioner to make the assessment required in sections 270.071 to 270.079,
unless the commissioner determines that the airline company deleted text begin or person should be excluded
from deleted text end new text begin is exempt from new text end filing deleted text begin because its activities do not constitute air commerce as defined
herein deleted text end .

new text begin (b) The commissioner shall prescribe the content, format, and manner of the report
pursuant to section 270C.30, except that a "law administered by the commissioner" includes
the property tax laws. If a report is made by electronic means, the taxpayer's signature is
defined pursuant to section 270C.304, except that a "law administered by the commissioner"
includes the property tax laws.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin The amendment to paragraph (a) is effective for reports filed in
2018 and thereafter. The amendment adding paragraph (b) is effective the day following
final enactment.
new text end

Sec. 8.

Minnesota Statutes 2016, section 270.072, is amended by adding a subdivision to
read:

new text begin Subd. 3a. new text end

new text begin Commissioner filed reports. new text end

new text begin If an airline company fails to file a report required
by subdivision 3, the commissioner may, from information in the commissioner's possession
or obtainable by the commissioner, make and file a report for the airline company, or may
issue a notice of net tax capacity and tax under section 270.075, subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2016, section 270.12, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Reassessment orders. new text end

new text begin If the State Board of Equalization determines that a
considerable amount of property has been undervalued or overvalued compared to like
property such that the assessment is grossly unfair or inequitable, the State Board of
Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue orders
to the county assessor to reassess all parcels or an identified set of parcels in a county.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 10.

Minnesota Statutes 2016, section 270C.89, subdivision 1, is amended to read:

Subdivision 1.

Initial report.

Each county assessor shall file by April 1 with the
commissioner a copy of the abstract that will be acted upon by the local and county boards
of review. The abstract must list the real and personal property in the county itemized by
assessment districts. The assessor of each county in the state shall file with the commissioner,
within ten working days following final action of the local board of review or equalization
and within five days following final action of the county board of equalization, any changes
made by the local or county board. The information must be filed in the manner prescribed
by the commissioner. deleted text begin It must be accompanied by a printed or typewritten copy of the
proceedings of the appropriate board.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for local and county boards of appeal
and equalization meetings held in 2017 and thereafter.
new text end

Sec. 11.

Minnesota Statutes 2016, section 272.02, subdivision 9, is amended to read:

Subd. 9.

Personal property; exceptions.

Except for the taxable personal property
enumerated below, all personal property and the property described in section 272.03,
subdivision 1, paragraphs (c) and (d), shall be exempt.

The following personal property shall be taxable:

(a) personal property which is part of new text begin (1) new text end an electric generating, transmission, or
distribution system deleted text begin or deleted text end new text begin ; (2) new text end a pipeline system transporting or distributing deleted text begin water, gas, crude
oil, or petroleum deleted text end products new text begin ; new text end or new text begin (3) new text end mains and pipes used in the distribution of steam or hot
or chilled water for heating or cooling buildings and structures;

(b) railroad docks and wharves which are part of the operating property of a railroad
company as defined in section 270.80;

(c) personal property defined in section 272.03, subdivision 2, clause (3);

(d) leasehold or other personal property interests which are taxed pursuant to section
272.01, subdivision 2; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law
providing the property is taxable as if the lessee or user were the fee owner;

(e) manufactured homes and sectional structures, including storage sheds, decks, and
similar removable improvements constructed on the site of a manufactured home, sectional
structure, park trailer or travel trailer as provided in section 273.125, subdivision 8, paragraph
(f); and

(f) flight property as defined in section 270.071.

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.

Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) For the purposes of this section deleted text begin , the term deleted text end :

(1) "wind energy conversion system" has the meaning given in section 216C.06,
subdivision 19, and also includes a substation that is used and owned by one or more wind
energy conversion facilities;

(2) "large scale wind energy conversion system" means a wind energy conversion system
of more than 12 megawatts, as measured by the nameplate capacity of the system or as
combined with other systems as provided in paragraph (b);

(3) "medium scale wind energy conversion system" means a wind energy conversion
system of over two and not more than 12 megawatts, as measured by the nameplate capacity
of the system or as combined with other systems as provided in paragraph (b); and

(4) "small scale wind energy conversion system" means a wind energy conversion system
of two megawatts and under, as measured by the nameplate capacity of the system or as
combined with other systems as provided in paragraph (b).

(b) For systems installed and contracted for after January 1, 2002, the total size of a
wind energy conversion system under this subdivision shall be determined according to this
paragraph. Unless the systems are interconnected with different distribution systems, the
nameplate capacity of one wind energy conversion system shall be combined with the
nameplate capacity of any other wind energy conversion system that is:

(1) located within five miles of the wind energy conversion system;

(2) constructed within the same deleted text begin calendar year deleted text end new text begin 12-month period new text end as the wind energy
conversion system; and

(3) under common ownership.

In the case of a dispute, the commissioner of commerce shall determine the total size of
the system, and shall draw all reasonable inferences in favor of combining the systems.

(c) In making a determination under paragraph (b), the commissioner of commerce may
determine that two wind energy conversion systems are under common ownership when
the underlying ownership structure contains similar persons or entities, even if the ownership
shares differ between the two systems. Wind energy conversion systems are not under
common ownership solely because the same person or entity provided equity financing for
the systems.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reports filed in 2018 and thereafter.
new text end

Sec. 13.

Minnesota Statutes 2016, section 272.029, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Extension. new text end

new text begin The commissioner may, for good cause, extend the time for filing
the report required by subdivision 4. The extension must not exceed 15 days.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reports filed in 2018 and thereafter.
new text end

Sec. 14.

Minnesota Statutes 2016, section 273.061, subdivision 7, is amended to read:

Subd. 7.

Division of duties between local and county assessor.

The duty of the duly
appointed local assessor shall be to view and appraise the value of all property as provided
by law, but all the book work shall be done by the county assessor, or the assessor's assistants,
and the value of all property subject to assessment and taxation shall be determined by the
county assessor, except as otherwise hereinafter provided. If directed by the county assessor,
the local assessor deleted text begin shall deleted text end new text begin must new text end perform the duties enumerated in subdivision 8, clause (16) new text begin ,
and must enter construction and valuation data into the records in the manner prescribed
by the county assessor new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 15.

Minnesota Statutes 2016, section 273.08, is amended to read:

273.08 ASSESSOR'S DUTIES.

The assessor shall actually view, and determine the market value of each tract or lot of
real property listed for taxation, including the value of all improvements and structures
thereon, at maximum intervals of five years and shall enter the value opposite each
description. new text begin When directed by the county assessor, local assessors must enter construction
and valuation data into the records in the manner prescribed by the county assessor.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 16.

Minnesota Statutes 2016, section 273.121, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Compliance. new text end

new text begin A county assessor, or a city assessor having the powers of a
county assessor, who does not comply with the timely notice requirement under subdivision
1 must:
new text end

new text begin (1) mail an additional valuation notice to each person who was not provided timely
notice; and
new text end

new text begin (2) convene a supplemental local board of appeal and equalization or local review session
no sooner than ten days after sending the additional notices required by clause (1).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for valuation notices sent in 2018 and
thereafter.
new text end

Sec. 17.

Minnesota Statutes 2016, 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 blind person and the
blind person's spouse;

(2) any person who is permanently and totally disabled or by the disabled person and
the disabled person's spouse; or

(3) the surviving spouse of a permanently and totally disabled veteran 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 deleted text begin has a classification rate using the rates for deleted text end new text begin is classified as new text end class
1a or class 2a property, whichever is appropriate deleted text begin , of similar market value deleted text end .

(c) Class 1c property is commercial use real and personal property that abuts public
water as defined in section 103G.005, subdivision 15, 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 2018 and thereafter.
new text end

Sec. 18.

Minnesota Statutes 2016, section 273.33, subdivision 1, is amended to read:

Subdivision 1.

Listing and assessment in county.

The personal property of express,
stage and transportation companies, and of pipeline companies engaged in the business of
transporting deleted text begin natural gas, gasoline, crude oil, or other petroleum deleted text end products new text begin , new text end except as otherwise
provided by law, shall be listed and assessed in the county, town or district where the same
is usually kept.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 19.

Minnesota Statutes 2016, section 273.33, subdivision 2, is amended to read:

Subd. 2.

Listing and assessment by commissioner.

The personal property, consisting
of the pipeline system of mains, pipes, and equipment attached thereto, of pipeline companies
and others engaged in the operations or business of transporting deleted text begin natural gas, gasoline, crude
oil, or other petroleum deleted text end products by pipelines, shall be listed with and assessed by the
commissioner of revenue and the values provided to the city or county assessor by order.
This subdivision shall not apply to the assessment of the products transported through the
pipelines nor to the lines of local commercial gas companies engaged primarily in the
business of distributing deleted text begin gas deleted text end new text begin products new text end to consumers at retail nor to pipelines used by the
owner thereof to supply deleted text begin natural gas or other petroleum deleted text end products exclusively for such owner's
own consumption and not for resale to others. If more than 85 percent of the deleted text begin natural gas or
other petroleum deleted text end products actually transported over the pipeline is used for the owner's own
consumption and not for resale to others, then this subdivision shall not apply; provided,
however, that in that event, the pipeline shall be assessed in proportion to the percentage
of deleted text begin gas deleted text end new text begin products new text end actually transported over such pipeline that is not used for the owner's own
consumption. On or before August 1, the commissioner shall certify to the auditor of each
county, the amount of such personal property assessment against each company in each
district in which such property is located. If the commissioner determines that the amount
of personal property assessment certified on or before August 1 is in error, the commissioner
may issue a corrected certification on or before October 1. The commissioner may correct
errors that are merely clerical in nature until December 31.

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 2016, section 273.372, subdivision 1, is amended to read:

Subdivision 1.

Scope.

(a) As provided in this section, an appeal by a utility or railroad
company concerning property for which the commissioner of revenue has provided the city
or county assessor with valuations by order, or for which the commissioner has recommended
values to the city or county assessor, must be brought against the commissioner deleted text begin , deleted text end and deleted text begin not
against deleted text end the county or taxing district where the property is located. new text begin Service must be made
on the commissioner only, and not on the county or taxing district.
new text end

(b) This section governs administrative appeals and appeals to court of a claim that utility
or railroad operating property has been partially, unfairly, or unequally assessed, or assessed
at a valuation greater than its real or actual value, misclassified, or that the property is
exempt. This section applies only to property described in sections 270.81, subdivision 1,
273.33, 273.35, 273.36, and 273.37, and only with regard to taxable net tax capacities that
have been provided to the city or county by the commissioner and which have not been
changed by city or county. If the taxable net tax capacity being appealed is not the taxable
net tax capacity established by the commissioner, or if the appeal claims that the tax rate
applied against the parcel is incorrect, or that the tax has been paid, this section does not
apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for appeals of valuations made in
assessment year 2018 and thereafter.
new text end

Sec. 21.

Minnesota Statutes 2016, section 273.372, subdivision 2, is amended to read:

Subd. 2.

Contents and filing of petition.

(a) In all appeals to court that are required to
be brought against the commissioner under this section, the petition initiating the appeal
must be served on the commissioner and must be filed with the Tax Court in Ramsey County,
as provided in paragraph (b) or (c).

(b) If the appeal to court is from an order of the commissioner, it must be brought under
chapter 271 new text begin and filed within the time period prescribed in section 271.06, subdivision 2 new text end ,
except that when the provisions of this section conflict with chapter 271 new text begin or 278 new text end , this section
prevails. In addition, the petition must include all the parcels encompassed by that order
which the petitioner claims have been partially, unfairly, or unequally assessed, assessed
at a valuation greater than their real or actual value, misclassified, or are exempt. For this
purpose, an order of the commissioner is either (1) a certification or notice of value by the
commissioner for property described in subdivision 1, or (2) the final determination by the
commissioner of either an administrative appeal conference or informal administrative
appeal described in subdivision 4.

(c) If the appeal is from the tax that results from implementation of the commissioner's
order, certification, or recommendation, it must be brought under chapter 278, and the
provisions in that chapter apply, except that service shall be on the commissioner only and
not on the local officials specified in section 278.01, subdivision 1, and if any other provision
of this section conflicts with chapter 278, this section prevails. In addition, the petition must
include either all the utility parcels or all the railroad parcels in the state in which the
petitioner claims an interest and which the petitioner claims have been partially, unfairly,
or unequally assessed, assessed at a valuation greater than their real or actual value,
misclassified, or are exempt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 22.

Minnesota Statutes 2016, section 273.372, subdivision 4, is amended to read:

Subd. 4.

Administrative appeals.

(a) Companies that submit the reports under section
270.82 or 273.371 by the date specified in that section, or by the date specified by the
commissioner in an extension, may appeal administratively to the commissioner prior to
bringing an action in court.

(b) Companies deleted text begin that deleted text end must deleted text begin submit reports under section 270.82 must submit deleted text end new text begin file new text end a written
request deleted text begin to deleted text end new text begin for an appeal with new text end the commissioner deleted text begin for a conference deleted text end within deleted text begin ten deleted text end new text begin 30 new text end days after
the new text begin notice new text end date of the commissioner's valuation certification or new text begin other new text end notice to the company deleted text begin ,
or by June 15, whichever is earlier deleted text end . new text begin For purposes of this section, "notice date" means the
notice date of the valuation certification, commissioner's order, recommendation, or other
notice.
new text end

(c) deleted text begin Companies that submit reports under section 273.371 must submit a written request
to the commissioner for a conference within ten days after the date of the commissioner's
valuation certification or notice to the company, or by July 1, whichever is earlier. deleted text end new text begin The
appeal need not be in any particular form but must contain the following information:
new text end

new text begin (1) name and address of the company;
new text end

new text begin (2) the date;
new text end

new text begin (3) its Minnesota identification number;
new text end

new text begin (4) the assessment year or period involved;
new text end

new text begin (5) the findings in the valuation that the company disputes;
new text end

new text begin (6) a summary statement specifying its reasons for disputing each item; and
new text end

new text begin (7) the signature of the company's duly authorized agent or representative.
new text end

new text begin (d) When requested in writing and within the time allowed for filing an administrative
appeal, the commissioner may extend the time for filing an appeal for a period of not more
than 15 days from the expiration of the time for filing the appeal.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end The commissioner shall conduct the conference new text begin either in person or by telephone
new text end upon the commissioner's entire files and records and such further information as may be
offered. The conference must be held no later than 20 days after the date of the
deleted text begin commissioner's valuation certification or notice to the company, or by the date specified by
the commissioner in an extension deleted text end new text begin request for an appeal new text end . Within deleted text begin 60 deleted text end new text begin 30 new text end days after the
conference the commissioner shall make a final determination of the matter and shall notify
the company promptly of the determination. The conference is not a contested case hearing new text begin
subject to chapter 14 new text end .

deleted text begin (e) In addition to the opportunity for a conference under paragraph (a), the commissioner
shall also provide the railroad and utility companies the opportunity to discuss any questions
or concerns relating to the values established by the commissioner through certification or
notice in a less formal manner. This does not change or modify the deadline for requesting
a conference under paragraph (a), the deadline in section 271.06 for appealing an order of
the commissioner, or the deadline in section 278.01 for appealing property taxes in court.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 23.

Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Agreement determining valuation. new text end

new text begin When it appears to be in the best interest
of the state, the commissioner may settle any matter under consideration regarding an appeal
filed under this section. The agreement must be in writing and signed by the commissioner
and the company or the company's authorized representative. The agreement is final and
conclusive, and except upon a showing of fraud, malfeasance, or misrepresentation of a
material fact, the case may not be reopened as to the matters agreed upon.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2018 and thereafter.
new text end

Sec. 24.

Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Dismissal of administrative appeal. new text end

new text begin If a taxpayer files an administrative appeal
from an order of the commissioner and also files an appeal to the tax court for that same
order of the commissioner, the administrative appeal is dismissed and the commissioner is
no longer required to make the determination of appeal under subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2017.
new text end

Sec. 25.

new text begin [273.88] EQUALIZATION OF PUBLIC UTILITY STRUCTURES.
new text end

new text begin After making the apportionment provided in Minnesota Rules, part 8100.0600, the
commissioner must equalize the values of the operating structures to the level accepted by
the State Board of Equalization if the appropriate sales ratio for each county, as conducted
by the Department of Revenue pursuant to section 270.12, subdivision 2, clause (6), is
outside the range accepted by the State Board of Equalization. The commissioner must not
equalize the value of the operating structures if the sales ratio determined pursuant to this
subdivision is within the range accepted by the State Board of Equalization.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2017.
new text end

Sec. 26.

Minnesota Statutes 2016, section 274.01, subdivision 1, is amended to read:

Subdivision 1.

Ordinary board; meetings, deadlines, grievances.

(a) The town board
of a town, or the council or other governing body of a city, is the new text begin local new text end board of appeal and
equalization except (1) in cities whose charters provide for a board of equalization or (2)
in any city or town that has transferred its local board of review power and duties to the
county board as provided in subdivision 3. The county assessor shall fix a day and time
when deleted text begin the board or deleted text end the new text begin local new text end board of equalization shall meet in the assessment districts of
the county. Notwithstanding any law or city charter to the contrary, a city board of
equalization shall be referred to as a new text begin local new text end board of appeal and equalization. On or before
February 15 of each year the assessor shall give written notice of the time to the city or
town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings must
be held between April 1 and May 31 each year. The clerk shall give published and posted
notice of the meeting at least ten days before the date of the meeting.

The board shall meet either at a central location within the county or at the office of the
clerk to review the assessment and classification of property in the town or city. No changes
in valuation or classification which are intended to correct errors in judgment by the county
assessor may be made by the county assessor after the board has adjourned in those cities
or towns that hold a local board of review; however, corrections of errors that are merely
clerical in nature or changes that extend homestead treatment to property are permitted after
adjournment until the tax extension date for that assessment year. The changes must be fully
documented and maintained in the assessor's office and must be available for review by any
person. A copy of the changes made during this period in those cities or towns that hold a
local board of review must be sent to the county board no later than December 31 of the
assessment year.

(b) The board shall determine whether the taxable property in the town or city has been
properly placed on the list and properly valued by the assessor. If real or personal property
has been omitted, the board shall place it on the list with its market value, and correct the
assessment so that each tract or lot of real property, and each article, parcel, or class of
personal property, is entered on the assessment list at its market value. No assessment of
the property of any person may be raised unless the person has been duly notified of the
intent of the board to do so. On application of any person feeling aggrieved, the board shall
review the assessment or classification, or both, and correct it as appears just. The board
may not make an individual market value adjustment or classification change that would
benefit the property if the owner or other person having control over the property has refused
the assessor access to inspect the property and the interior of any buildings or structures as
provided in section 273.20. A board member shall not participate in any actions of the board
which result in market value adjustments or classification changes to property owned by
the board member, the spouse, parent, stepparent, child, stepchild, grandparent, grandchild,
brother, sister, uncle, aunt, nephew, or niece of a board member, or property in which a
board member has a financial interest. The relationship may be by blood or marriage.

(c) A local board may reduce assessments upon petition of the taxpayer but the total
reductions must not reduce the aggregate assessment made by the county assessor by more
than one percent. If the total reductions would lower the aggregate assessments made by
the county assessor by more than one percent, none of the adjustments may be made. The
assessor shall correct any clerical errors or double assessments discovered by the board
without regard to the one percent limitation.

(d) A local board does not have authority to grant an exemption or to order property
removed from the tax rolls.

(e) A majority of the members may act at the meeting, and adjourn from day to day until
they finish hearing the cases presented. The assessor shall attend and take part in the
proceedings, but must not vote. The county assessor, or an assistant delegated by the county
assessor shall attend the meetings. The board shall list separately all omitted property added
to the list by the board and all items of property increased or decreased, with the market
value of each item of property, added or changed by the board. The county assessor shall
enter all changes made by the board.

(f) Except as provided in subdivision 3, if a person fails to appear in person, by counsel,
or by written communication before the board after being duly notified of the board's intent
to raise the assessment of the property, or if a person feeling aggrieved by an assessment
or classification fails to apply for a review of the assessment or classification, the person
may not appear before the county board of appeal and equalization for a review. This
paragraph does not apply if an assessment was made after the local board meeting, as
provided in section 273.01, or if the person can establish not having received notice of
market value at least five days before the local board meeting.

(g) The local board must complete its work and adjourn within 20 days from the time
of convening stated in the notice of the clerk, unless a longer period is approved by the
commissioner of revenue. No action taken after that date is valid. All complaints about an
assessment or classification made after the meeting of the board must be heard and
determined by the county board of equalization. A nonresident may, at any time, before the
meeting of the board file written objections to an assessment or classification with the county
assessor. The objections must be presented to the board at its meeting by the county assessor
for its consideration.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 27.

Minnesota Statutes 2016, section 274.13, subdivision 1, is amended to read:

Subdivision 1.

Members; meetings; rules for equalizing assessments.

The county
commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be
present, the deputy county auditor, or, if there is no deputy, the court administrator of the
district court, shall form a board for the equalization of the assessment of the property of
the county, including the property of all cities whose charters provide for a board of
equalization. This board shall be referred to as the county board of appeal and equalization.
The board shall meet annually, on the date specified in section 274.14, at the office of the
auditor. Each member shall take an oath to fairly and impartially perform duties as a member.
Members shall not participate in any actions of the board which result in market value
adjustments or classification changes to property owned by the board member, the spouse,
parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt,
nephew, or niece of a board member, or property in which a board member has a financial
interest. The relationship may be by blood or marriage. The board shall examine and compare
the returns of the assessment of property of the towns or districts, and equalize them so that
each tract or lot of real property and each article or class of personal property is entered on
the assessment list at its market value, subject to the following rules:

(1) The board shall raise the valuation of each tract or lot of real property which in its
opinion is returned below its market value to the sum believed to be its market value. The
board must first give notice of intention to raise the valuation to the person in whose name
it is assessed, if the person is a resident of the county. The notice must fix a time and place
for a hearing.

(2) The board shall reduce the valuation of each tract or lot which in its opinion is returned
above its market value to the sum believed to be its market value.

(3) The board shall raise the valuation of each class of personal property which in its
opinion is returned below its market value to the sum believed to be its market value. It
shall raise the aggregate value of the personal property of individuals, firms, or corporations,
when it believes that the aggregate valuation, as returned, is less than the market value of
the taxable personal property possessed by the individuals, firms, or corporations, to the
sum it believes to be the market value. The board must first give notice to the persons of
intention to do so. The notice must set a time and place for a hearing.

(4) The board shall reduce the valuation of each class of personal property that is returned
above its market value to the sum it believes to be its market value. Upon complaint of a
party aggrieved, the board shall reduce the aggregate valuation of the individual's personal
property, or of any class of personal property for which the individual is assessed, which
in its opinion has been assessed at too large a sum, to the sum it believes was the market
value of the individual's personal property of that class.

(5) The board must not reduce the aggregate value of all the property of its county, as
submitted to the county board of equalization, with the additions made by the auditor under
this chapter, by more than one percent of its whole valuation. The board may raise the
aggregate valuation of real property, and of each class of personal property, of the county,
or of any town or district of the county, when it believes it is below the market value of the
property, or class of property, to the aggregate amount it believes to be its market value.

(6) The board shall change the classification of any property which in its opinion is not
properly classified.

(7) The board does not have the authority to grant an exemption or to order property
removed from the tax rolls.

new text begin (8) The board may not make an individual market value adjustment or classification
change that would benefit property if the owner or other person having control over the
property has refused the assessor access to inspect the property and the interior of any
buildings or structures as provided in section 273.20.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for county board of appeal and
equalization meetings in 2018 and thereafter.
new text end

Sec. 28.

Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read:

Subd. 3.

Proof of compliance; transfer of duties.

(a) Any county that conducts county
boards of appeal and equalization meetings must provide proof to the commissioner by
deleted text begin December 1, 2009, and each year thereafter, deleted text end new text begin February 1 new text end that it is in compliance with the
requirements of subdivision 2. deleted text begin Beginning in 2009, deleted text end This notice must also verify that there
was a quorum of voting members at each meeting of the board of appeal and equalization
in the deleted text begin current deleted text end new text begin previous new text end year. A county that does not comply with these requirements is
deemed to have transferred its board of appeal and equalization powers to the special board
of equalization appointed pursuant to section 274.13, subdivision 2, beginning with the
following year's assessment and continuing unless the powers are reinstated under paragraph
(c). A county that does not comply with the requirements of subdivision 2 and has not
appointed a special board of equalization shall appoint a special board of equalization before
the following year's assessment.

(b) The county shall notify the taxpayers when the board of appeal and equalization for
a county has been transferred to the special board of equalization under this subdivision
and, prior to the meeting time of the special board of equalization, the county shall make
available to those taxpayers a procedure for a review of the assessments, including, but not
limited to, open book meetings. This alternate review process must take place in April and
May.

(c) A county board whose powers are transferred to the special board of equalization
under this subdivision may be reinstated by resolution of the county board and upon proof
of compliance with the requirements of subdivision 2. The resolution and proofs must be
provided to the commissioner by deleted text begin December deleted text end new text begin February new text end 1 in order to be effective for the
deleted text begin following deleted text end new text begin current new text end year's assessment.

(d) If a person who was entitled to appeal to the county board of appeal and equalization
or to the county special board of equalization is not able to do so in a particular year because
the county board or special board did not meet the quorum and training requirements in this
section and section 274.13, or because the special board was not appointed, that person may
instead appeal to the commissioner of revenue, provided that the appeal is received by the
commissioner prior to August 1. The appeal is not subject to either chapter 14 or section
270C.92. The commissioner must issue an appropriate order to the county assessor in
response to each timely appeal, either upholding or changing the valuation or classification
of the property. Prior to October 1 of each year, the commissioner must charge and bill the
county where the property is located $500 for each tax parcel covered by an order issued
under this paragraph in that year. Amounts received by the commissioner under this paragraph
must be deposited in the state's general fund. If payment of a billed amount is not received
by the commissioner before December 1 of the year when billed, the commissioner must
deduct that unpaid amount from any state aid the commissioner would otherwise pay to the
county under chapter 477A in the next year. Late payments may either be returned to the
county uncashed and undeposited or may be accepted. If a late payment is accepted, the
state aid paid to the county under chapter 477A must be adjusted within 12 months to
eliminate any reduction that occurred because the payment was late. Amounts needed to
make these adjustments are included in the appropriation under section 477A.03, subdivision
2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for county boards of appeal and
equalization meetings held in 2018 and thereafter.
new text end

Sec. 29.

Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read:

Subdivision 1.

Proposed levy.

(a) Notwithstanding any law or charter to the contrary,
on or before September 30, each county and each home rule charter or statutory city shall
certify to the county auditor the proposed property tax levy for taxes payable in the following
year.

(b) Notwithstanding any law or charter to the contrary, on or before September 15, each
town and each special taxing district shall adopt and certify to the county auditor a proposed
property tax levy for taxes payable in the following year. For towns, the final certified levy
shall also be considered the proposed levy.

(c) On or before September 30, each school district that has not mutually agreed with
its home county to extend this date shall certify to the county auditor the proposed property
tax levy for taxes payable in the following year. Each school district that has agreed with
its home county to delay the certification of its proposed property tax levy must certify its
proposed property tax levy for the following year no later than October 7. The school district
shall certify the proposed levy as:

(1) a specific dollar amount by school district fund, broken down between voter-approved
and non-voter-approved levies and between referendum market value and tax capacity
levies; or

(2) the maximum levy limitation certified by the commissioner of education according
to section 126C.48, subdivision 1.

(d) If the board of estimate and taxation or any similar board that establishes maximum
tax levies for taxing jurisdictions within a first class city certifies the maximum property
tax levies for funds under its jurisdiction by charter to the county auditor by the date specified
in paragraph (a), the city shall be deemed to have certified its levies for those taxing
jurisdictions.

(e) For purposes of this section, "special taxing district" means a special taxing district
as defined in section 275.066. Intermediate school districts that levy a tax under chapter
124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and
Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special
taxing districts for purposes of this section.

(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
tax levy under this subdivision, the taxing authority shall announce the time and place of
deleted text begin its deleted text end new text begin any new text end subsequent regularly scheduled meetings at which the budget and levy will be
discussed and at which the public will be allowed to speak. The time and place of those
meetings must be included in the proceedings or summary of proceedings published in the
official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 30.

Minnesota Statutes 2016, section 275.62, subdivision 2, is amended to read:

Subd. 2.

Local governments required to report.

For purposes of this section, "local
governmental unit" means a county, home rule charter or statutory city with a population
greater than 2,500 deleted text begin , a town with a population greater than 5,000, or a home rule charter or
statutory city or town that receives a distribution from the taconite municipal aid account
in the levy year 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. 31.

Minnesota Statutes 2016, section 278.01, subdivision 1, is amended to read:

Subdivision 1.

Determination of validity.

(a) Any person having personal property, or
any estate, right, title, or interest in or lien upon any parcel of land, who claims that such
property has been partially, unfairly, or unequally assessed in comparison with other property
in the (1) city, or (2) county, or (3) in the case of a county containing a city of the first class,
the portion of the county excluding the first class city, or that the parcel has been assessed
at a valuation greater than its real or actual value, or that the tax levied against the same is
illegal, in whole or in part, or has been paid, or that the property is exempt from the tax so
levied, may have the validity of the claim, defense, or objection determined by the district
court of the county in which the tax is levied or by the Tax Court by serving one copy of a
petition for such determination upon the county auditor, one copy on the county attorney,
one copy on the county treasurer, and three copies on the county assessor. The county
assessor shall immediately forward one copy of the petition to the appropriate governmental
authority in a home rule charter or statutory city or town in which the property is located if
that city or town employs its own certified assessor. A copy of the petition shall also be
forwarded by the assessor to the school board of the school district in which the property
is located.

(b) In counties where the office of county treasurer has been combined with the office
of county auditor, the county may elect to require the petitioner to serve the number of
copies as determined by the county. The county assessor shall immediately forward one
copy of the petition to the appropriate governmental authority in a home rule charter or
statutory city or town in which the property is located if that city or town employs its own
certified assessor. A list of petitioned properties, including the name of the petitioner, the
identification number of the property, and the estimated market value, shall be sent on or
before the first day of July by the county auditor/treasurer to the school board of the school
district in which the property is located.

(c) For all counties, the petitioner must file the copies with proof of service, in the office
of the court administrator of the district court on or before April 30 of the year in which the
tax becomes payable. A petition for determination under this section may be transferred by
the district court to the Tax Court. An appeal may also be taken to the Tax Court under
chapter 271 at any time following receipt of the valuation notice new text begin that county assessors or
city assessors having the powers of a county assessor are new text end required by section 273.121 new text begin to
send to persons whose property is to be included on the assessment roll that year, new text end but prior
to May 1 of the year in which the taxes are payable.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 32.

Minnesota Statutes 2016, section 282.01, subdivision 1a, is amended to read:

Subd. 1a.

Conveyance to public entities.

(a) Upon written request from a state agency
or a governmental subdivision of the state, a parcel of unsold tax-forfeited land must be
withheld from sale or lease to others for a maximum of six months. The request must be
submitted to the county auditor. Upon receipt, the county auditor must withhold the parcel
from sale or lease to any other party for six months, and must confirm the starting date of
the six-month withholding period to the requesting agency or subdivision. If the request is
from a governmental subdivision of the state, the governmental subdivision must pay the
maintenance costs incurred by the county during the period the parcel is withheld. The
county board may approve a sale or conveyance to the requesting party during the
withholding period. A conveyance of the property to the requesting party terminates the
withholding period.

A governmental subdivision of the state must not make, and a county auditor must not
act upon, a second request to withhold a parcel from sale or lease within 18 months of a
previous request for that parcel. A county may reject a request made under this paragraph
if the request is made more than 30 days after the county has given notice to the requesting
state agency or governmental subdivision of the state that the county intends to sell or
otherwise dispose of the property.

(b) Nonconservation tax-forfeited lands may be sold by the county board, for their market
value as determined by the county board, to an organized or incorporated governmental
subdivision of the state for any public purpose for which the subdivision is authorized to
acquire property. When the term "market value" is used in this section, it means an estimate
of the full and actual market value of the parcel as determined by the county board, but in
making this determination, the board and the persons employed by or under contract with
the board in order to perform, conduct, or assist in the determination, are exempt from the
licensure requirements of chapter 82B.

(c) Nonconservation tax-forfeited lands may be deleted text begin released from the trust in favor of the
taxing districts on application to deleted text end new text begin sold by new text end the county board deleted text begin by deleted text end new text begin , for their market value as
determined by the county board, to new text end a state agency for deleted text begin an authorized use at not less than their
market value as determined by the county board deleted text end new text begin any public purpose for which the agency
is authorized to acquire property new text end .

(d) Nonconservation tax-forfeited lands may be sold by the county board to an organized
or incorporated governmental subdivision of the state or state agency for less than their
market value if:

(1) the county board determines that a sale at a reduced price is in the public interest
because a reduced price is necessary to provide an incentive to correct the blighted conditions
that make the lands undesirable in the open market, or the reduced price will lead to the
development of affordable housing; and

(2) the governmental subdivision or state agency has documented its specific plans for
correcting the blighted conditions or developing affordable housing, and the specific law
or laws that empower it to acquire real property in furtherance of the plans.

If the sale under this paragraph is to a governmental subdivision of the state, the
commissioner of revenue must convey the property on behalf of the state by quitclaim deed.
If the sale under this paragraph is to a state agency, new text begin the property is released from the trust
in favor of the taxing districts and new text end the commissioner new text begin of revenue new text end must deleted text begin issue a conveyance
document that releases the property from the trust in favor of the taxing districts deleted text end new text begin convey the
property on behalf of the state by quitclaim deed to the agency new text end .

(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts may
be conveyed by the commissioner of revenue in the name of the state to a governmental
subdivision for an authorized public use, if an application is submitted to the commissioner
which includes a statement of facts as to the use to be made of the tract and the favorable
recommendation of the county board. For the purposes of this paragraph, "authorized public
use" means a use that allows an indefinite segment of the public to physically use and enjoy
the property in numbers appropriate to its size and use, or is for a public service facility.
Authorized public uses as defined in this paragraph are limited to:

(1) a road, or right-of-way for a road;

(2) a park that is both available to, and accessible by, the public that contains
improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;

(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
with a reasonable amount of surrounding land maintained in its natural state;

(4) transit facilities for buses, light rail transit, commuter rail or passenger rail, including
transit ways, park-and-ride lots, transit stations, maintenance and garage facilities, and other
facilities related to a public transit system;

(5) public beaches or boat launches;

(6) public parking;

(7) civic recreation or conference facilities; and

(8) public service facilities such as fire halls, police stations, lift stations, water towers,
sanitation facilities, water treatment facilities, and administrative offices.

No monetary compensation or consideration is required for the conveyance, except as
provided in subdivision 1g, but the conveyance is subject to the conditions provided in law,
including, but not limited to, the reversion provisions of subdivisions 1c and 1d.

(f) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited
land to a local governmental subdivision of the state by quitclaim deed on behalf of the state
upon the favorable recommendation of the county board if the governmental subdivision
has certified to the board that prior to forfeiture the subdivision was entitled to the parcel
under a written development agreement or instrument, but the conveyance failed to occur
prior to forfeiture. No compensation or consideration is required for, and no conditions
attach to, the conveyance.

(g) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited
land to the association of a common interest community by quitclaim deed upon the favorable
recommendation of the county board if the association certifies to the board that prior to
forfeiture the association was entitled to the parcel under a written agreement, but the
conveyance failed to occur prior to forfeiture. No compensation or consideration is required
for, and no conditions attach to, the conveyance.

(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the
state for less than its market value for either: (1) creation or preservation of wetlands; (2)
drainage or storage of storm water under a storm water management plan; or (3) preservation,
or restoration and preservation, of the land in its natural state. The deed must contain a
restrictive covenant limiting the use of the land to one of these purposes for 30 years or
until the property is reconveyed back to the state in trust. At any time, the governmental
subdivision may reconvey the property to the state in trust for the taxing districts. The deed
of reconveyance is subject to approval by the commissioner of revenue. No part of a purchase
price determined under this paragraph shall be refunded upon a reconveyance, but the
amount paid for a conveyance under this paragraph may be taken into account by the county
board when setting the terms of a future sale of the same property to the same governmental
subdivision under paragraph (b) or (d). If the lands are unplatted and located outside of an
incorporated municipality and the commissioner of natural resources determines there is a
mineral use potential, the sale is subject to the approval of the commissioner of natural
resources.

(i) A park and recreation board in a city of the first class is a governmental subdivision
for the purposes of this section.

(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed by
the commissioner of revenue in the name of the state to a governmental subdivision for a
school forest under section 89.41. An application that includes a statement of facts as to the
use to be made of the tract and the favorable recommendation of the county board and the
commissioner of natural resources must be submitted to the commissioner of revenue. No
monetary compensation or consideration is required for the conveyance, but the conveyance
is subject to the conditional use and reversion provisions of subdivisions 1c and 1d, paragraph
(e). At any time, the governmental subdivision may reconvey the property back to the state
in trust for the taxing districts. The deed of reconveyance is subject to approval by the
commissioner of revenue.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 33.

Minnesota Statutes 2016, section 282.01, subdivision 1d, is amended to read:

Subd. 1d.

Reverter for failure to use; conveyance to state.

(a) After three years from
the date of any conveyance of tax-forfeited land to a governmental subdivision for an
authorized public use as provided in this section, regardless of when the deed for the
authorized public use was executed, if the governmental subdivision has failed to put the
land to that use, or abandons that use, the governing body of the subdivision must: (1) with
the approval of the county board, purchase the property for an authorized public purpose
at the present market value as determined by the county board, or (2) authorize the proper
officers to convey the land, or the part of the land not required for an authorized public use,
to the state of Minnesota in trust for the taxing districts. If the governing body purchases
the property under clause (1), the commissioner of revenue shall, upon proper application
submitted by the county auditor new text begin and upon the reconveyance of the land subject to the
conditional use deed to the state new text end , convey the property on behalf of the state by quitclaim
deed to the subdivision free of a use restriction and the possibility of reversion or
defeasement. If the governing body decides to reconvey the property to the state under this
clause, the officers shall execute a deed of conveyance immediately. The conveyance is
subject to the approval of the commissioner and its form must be approved by the attorney
general. For 15 years from the date of the conveyance, there is no failure to put the land to
the authorized public use and no abandonment of that use if a formal plan of the governmental
subdivision, including, but not limited to, a comprehensive plan or land use plan, shows an
intended future use of the land for the authorized public use.

(b) Property held by a governmental subdivision of the state under a conditional use
deed executed under this section by the commissioner of revenue on or after January 1,
2007, may be acquired by that governmental subdivision after 15 years from the date of the
conveyance if the commissioner determines upon written application from the subdivision
that the subdivision has in fact put the property to the authorized public use for which it
was conveyed, and the subdivision has made a finding that it has no current plans to change
the use of the lands. Prior to conveying the property, the commissioner shall inquire whether
the county board where the land is located objects to a conveyance of the property to the
subdivision without conditions and without further act by or obligation of the subdivision.
If the county does not object within 60 days, and the commissioner makes a favorable
determination, the commissioner shall issue a quitclaim deed on behalf of the state
unconditionally conveying the property to the governmental subdivision. For purposes of
this paragraph, demonstration of an intended future use for the authorized public use in a
formal plan of the governmental subdivision does not constitute use for that authorized
public use.

(c) Property held by a governmental subdivision of the state under a conditional use
deed executed under this section by the commissioner of revenue before January 1, 2007,
is released from the use restriction and possibility of reversion on January 1, 2022, if the
county board records a resolution describing the land and citing this paragraph. The county
board may authorize the county treasurer to deduct the amount of the recording fees from
future settlements of property taxes to the subdivision.

(d) Except for tax-forfeited land conveyed to establish a school forest under section
89.41, property conveyed under a conditional use deed executed under this section by the
commissioner of revenue, regardless of when the deed for the authorized public use was
executed, is released from the use restriction and reverter, and any use restriction or reverter
for which no declaration of reversion has been recorded with the county recorder or registrar
of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30 years from
the date the deed was acknowledged; or (3) final resolution of an appeal to district court
under subdivision 1e, if a lis pendens related to the appeal is recorded in the office of the
county recorder or registrar of titles, as appropriate, prior to January 1, 2015.

(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a
school forest under section 89.41 is subject to a perpetual conditional use deed and reverter.
The property reverts to the state in trust for the taxing districts by operation of law if the
commissioner of natural resources determines and reports to the commissioner of revenue
under section 89.41, subdivision 3, that the governmental subdivision has failed to use the
land for school forest purposes for three consecutive years. The commissioner of revenue
shall record a declaration of reversion for land that has reverted under this paragraph.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 34.

Minnesota Statutes 2016, section 477A.013, is amended by adding a subdivision
to read:

new text begin Subd. 14. new text end

new text begin Communication by electronic mail. new text end

new text begin Prior to receiving aid pursuant to this
section, a city must register an official electronic mail address with the commissioner, which
the commissioner may use as an exclusive means to communicate with the city.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2018 and thereafter.
new text end

Sec. 35.

Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Certification. new text end

new text begin On or before June 1 of each year, the commissioner of natural
resources shall certify to the commissioner of revenue the number of watercraft launches
and the number of watercraft trailer parking spaces in each county.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2018 and thereafter.
new text end

Sec. 36.

Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision
to read:

new text begin Subd. 3b. new text end

new text begin Certification. new text end

new text begin On or before June 1 of each year, the commissioner of natural
resources shall certify to the commissioner of revenue the counties that complied with the
requirements of subdivision 3 the prior year and are eligible to receive aid under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2018 and thereafter.
new text end

Sec. 37.

Minnesota Statutes 2016, section 559.202, subdivision 2, is amended to read:

Subd. 2.

Exception.

This section does not apply new text begin to sales made under chapter 282 or new text end if
the purchaser is represented throughout the transaction by either:

(1) a person licensed to practice law in this state; or

(2) a person licensed as a real estate broker or salesperson under chapter 82, provided
that the representation does not create a dual agency, as that term is defined in section 82.55,
subdivision 6.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales of tax-forfeited land occurring
the day following final enactment and thereafter.
new text end

Sec. 38.

Laws 2014, chapter 308, article 9, section 94, is amended to read:

Sec. 94. REPEALER.

(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision
19e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules,
part 8007.0200, are repealed.

(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, subdivision
2; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, 53, 67, 72, and
82; deleted text begin 272.027, subdivision 2; deleted text end 272.031; 273.015, subdivision 1; 273.03, subdivision 3; 273.075;
273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, subdivision
8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 4; 287.27,
subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision 7; 297A.666; 297A.71,
subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08, subdivision 11; 297H.10,
subdivision 2; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i;
469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; and 505.173, Minnesota Statutes
2013 Supplement, section 273.1103, Laws 1993, chapter 375, article 9, section 47, and
Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; and 8130.7500, subpart 7, are
repealed.

(c) Minnesota Statutes 2012, section 469.1764, is repealed.

(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision 38;
469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 469.339;
469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 Supplement,
section 469.340, subdivision 4, are repealed.

(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from May 20, 2014, and
pursuant to Minnesota Statutes, section 645.36, Minnesota Statutes, section 272.027,
subdivision 2, is revived and reenacted as of that date.
new text end

Sec. 39. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2016, section 281.22, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, part 8100.0700, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective the day following final enactment.
Paragraph (b) is effective for assessment year 2017 and thereafter.
new text end

ARTICLE 6

DEPARTMENT POLICY AND TECHNICAL PROVISIONS; MISCELLANEOUS

Section 1.

Minnesota Statutes 2016, section 270.82, subdivision 1, is amended to read:

Subdivision 1.

Annual report required.

Every railroad company doing business in
Minnesota shall annually file with the commissioner on or before March 31 a report under
oath setting forth the information prescribed by the commissioner to enable the commissioner
to make the valuation and equalization required by sections 270.80 to 270.87. new text begin The
commissioner shall prescribe the content, format, and manner of the report pursuant to
section 270C.30, except that a "law administered by the commissioner" includes the property
tax laws. If a report is made by electronic means, the taxpayer's signature is defined pursuant
to section 270C.304, except that a "law administered by the commissioner" includes the
property tax laws.
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 2016, section 270A.03, subdivision 5, is amended to read:

Subd. 5.

Debt.

(a) "Debt" means a legal obligation of a natural person to pay a fixed and
certain amount of money, which equals or exceeds $25 and which is due and payable to a
claimant agency. The term includes criminal fines imposed under section 609.10 or 609.125,
fines imposed for petty misdemeanors as defined in section 609.02, subdivision 4a, and
restitution. A debt may arise under a contractual or statutory obligation, a court order, or
other legal obligation, but need not have been reduced to judgment.

A debt includes any legal obligation of a current recipient of assistance which is based
on overpayment of an assistance grant where that payment is based on a client waiver or
an administrative or judicial finding of an intentional program violation; or where the debt
is owed to a program wherein the debtor is not a client at the time notification is provided
to initiate recovery under this chapter and the debtor is not a current recipient of food support,
transitional child care, or transitional medical assistance.

(b) A debt does not include any legal obligation to pay a claimant agency for medical
care, including hospitalization if the income of the debtor at the time when the medical care
was rendered does not exceed the following amount:

(1) for an unmarried debtor, an income of deleted text begin $8,800 deleted text end new text begin $12,560 new text end or less;

(2) for a debtor with one dependent, an income of deleted text begin $11,270 deleted text end new text begin $16,080 new text end or less;

(3) for a debtor with two dependents, an income of deleted text begin $13,330 deleted text end new text begin $19,020 new text end or less;

(4) for a debtor with three dependents, an income of deleted text begin $15,120 deleted text end new text begin $21,580 new text end or less;

(5) for a debtor with four dependents, an income of deleted text begin $15,950 deleted text end new text begin $22,760 new text end or less; and

(6) for a debtor with five or more dependents, an income of deleted text begin $16,630 deleted text end new text begin $23,730 new text end or less.

new text begin For purposes of this paragraph, "debtor" means the individual whose income, together
with the income of the individual's spouse, other than a separated spouse, brings the
individual within the income provisions of this paragraph. For purposes of this paragraph,
a spouse, other than a separated spouse, shall be considered a dependent.
new text end

(c) The commissioner shall adjust the income amounts in paragraph (b) by the percentage
determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except
that in section 1(f)(3)(B) the word " deleted text begin 1999 deleted text end new text begin 2014 new text end " shall be substituted for the word "1992."
For deleted text begin 2001 deleted text end new text begin 2016 new text end , the commissioner shall then determine the percent change from the 12
months ending on August 31, deleted text begin 1999 deleted text end new text begin 2014 new text end , to the 12 months ending on August 31, deleted text begin 2000 deleted text end new text begin 2015 new text end ,
and in each subsequent year, from the 12 months ending on August 31, deleted text begin 1999 deleted text end new text begin 2014 new text end , to the
12 months ending on August 31 of the year preceding the taxable year. The determination
of the commissioner pursuant to this subdivision shall not be considered a "rule" and shall
not be subject to the Administrative Procedure Act contained in chapter 14. The income
amount as adjusted must be rounded to the nearest $10 amount. If the amount ends in $5,
the amount is rounded up to the nearest $10 amount.

(d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of the
dollar amount of the premium authorized under section 256L.15, subdivision 1a.

new text begin EFFECTIVE DATE. new text end

new text begin The section is effective retroactively for debts incurred after
December 31, 2014.
new text end

Sec. 3.

Minnesota Statutes 2016, section 270B.14, subdivision 1, is amended to read:

Subdivision 1.

Disclosure to commissioner of human services.

(a) On the request of
the commissioner of human services, the commissioner shall disclose return information
regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the
extent provided in paragraph (b) and for the purposes set forth in paragraph (c).

(b) Data that may be disclosed are limited to data relating to the identity, whereabouts,
employment, income, and property of a person owing or alleged to be owing an obligation
of child support.

(c) The commissioner of human services may request data only for the purposes of
carrying out the child support enforcement program and to assist in the location of parents
who have, or appear to have, deserted their children. Data received may be used only as set
forth in section 256.978.

(d) The commissioner shall provide the records and information necessary to administer
the supplemental housing allowance to the commissioner of human services.

(e) At the request of the commissioner of human services, the commissioner of revenue
shall electronically match the Social Security numbers and names of participants in the
telephone assistance plan operated under sections 237.69 to 237.71, with those of property
tax refund filers, and determine whether each participant's household income is within the
eligibility standards for the telephone assistance plan.

(f) The commissioner may provide records and information collected under sections
295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid
Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law
102-234. Upon the written agreement by the United States Department of Health and Human
Services to maintain the confidentiality of the data, the commissioner may provide records
and information collected under sections 295.50 to 295.59 to the Centers for Medicare and
Medicaid Services section of the United States Department of Health and Human Services
for purposes of meeting federal reporting requirements.

(g) The commissioner may provide records and information to the commissioner of
human services as necessary to administer the early refund of refundable tax credits.

(h) The commissioner may disclose information to the commissioner of human services
new text begin as new text end necessary deleted text begin to verify income deleted text end new text begin for income verification new text end for eligibility and premium payment
under the MinnesotaCare program, under section 256L.05, subdivision 2 new text begin , as well as the
medical assistance program under chapter 256B new text end .

(i) The commissioner may disclose information to the commissioner of human services
necessary to verify whether applicants or recipients for the Minnesota family investment
program, general assistance, food support, Minnesota supplemental aid program, and child
care assistance have claimed refundable tax credits under chapter 290 and the property tax
refund under chapter 290A, and the amounts of the credits.

(j) The commissioner may disclose information to the commissioner of human services
necessary to verify income for purposes of calculating parental contribution amounts under
section 252.27, subdivision 2a.

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 2016, section 270C.30, is amended to read:

270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING.

new text begin Except as otherwise provided by law, new text end the commissioner shall prescribe the content deleted text begin and deleted text end new text begin , new text end
format new text begin , and manner new text end of all returns and other forms required to be filed under a law
administered by the commissioner, and may furnish them subject to charge on application.

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.

Minnesota Statutes 2016, section 270C.33, subdivision 5, is amended to read:

Subd. 5.

Prohibition against collection during appeal period of an order.

No collection
action can be taken on an order of assessment, or any other order imposing a liability,
including the filing of liens under section 270C.63, and no late payment penalties may be
imposed when a return has been filed for the tax type and period upon which the order is
based, during the appeal period of an order. The appeal period of an order ends: (1) 60 days
after the deleted text begin order has been mailed to the taxpayer deleted text end new text begin notice date designated new text end by the commissioner new text begin
on the order new text end ; (2) if an administrative appeal is filed under section 270C.35, 60 days after new text begin
the notice date designated by the commissioner on the written new text end determination of the
administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when the
decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the appeal
is based upon a constitutional challenge to the tax, 60 days after final determination of the
appeal. This subdivision does not apply to a jeopardy assessment under section 270C.36,
or a jeopardy collection under section 270C.36.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December 31,
2017.
new text end

Sec. 6.

Minnesota Statutes 2016, section 270C.33, subdivision 8, is amended to read:

Subd. 8.

Sufficiency of notice.

An assessment of tax made by the commissioner, sent
postage prepaid by United States mail to the taxpayer at the taxpayer's last known address,
or sent by electronic mail to the taxpayer's last known electronic mailing address as provided
for in section 325L.08, is sufficient even if the taxpayer is deceased or is under a legal
disability, or, in the case of a corporation, has terminated its existence, unless the
commissioner has been provided with a new address by a party authorized to receive notices
of assessment. new text begin Notice of an assessment is sufficient if it is sent on or before the notice date
designated by the commissioner on the assessment.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments dated after December
31, 2017.
new text end

Sec. 7.

Minnesota Statutes 2016, section 270C.34, subdivision 2, is amended to read:

Subd. 2.

Procedure.

(a) A request for abatement of penalty under subdivision 1 or
section 289A.60, subdivision 4, or a request for abatement of interest or additional tax
charge, must be filed with the commissioner within 60 days of the new text begin notice new text end date new text begin of new text end the deleted text begin notice
was mailed to the taxpayer's last known address, stating that a deleted text end penalty deleted text begin has been imposed deleted text end new text begin or
additional tax charge. For purposes of this section, "notice date" means the notice date
designated by the commissioner on the order or other notice that a penalty or additional tax
charge has been imposed new text end .

(b) If the commissioner issues an order denying a request for abatement of penalty,
interest, or additional tax charge, the taxpayer may file an administrative appeal as provided
in section 270C.35 or appeal to Tax Court as provided in section 271.06.

(c) If the commissioner does not issue an order on the abatement request within 60 days
from the date the request is received, the taxpayer may appeal to Tax Court as provided in
section 271.06.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders and notices dated after
December 31, 2017.
new text end

Sec. 8.

Minnesota Statutes 2016, section 270C.35, subdivision 3, is amended to read:

Subd. 3.

Notice date.

For purposes of this section, deleted text begin the term deleted text end "notice date" means the new text begin
notice new text end date deleted text begin of deleted text end new text begin designated by the commissioner on new text end the order adjusting the tax or order denying
a request for abatement, or, in the case of a denied refund, the new text begin notice new text end date deleted text begin of deleted text end new text begin designated by
the commissioner on new text end the notice of denial.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders and notices dated after
December 31, 2017.
new text end

Sec. 9.

Minnesota Statutes 2016, section 270C.35, is amended by adding a subdivision to
read:

new text begin Subd. 11. new text end

new text begin Dismissal of administrative appeal. new text end

new text begin If a taxpayer files an administrative
appeal for an order of the commissioner and also files an appeal to the Tax Court for that
same order of the commissioner, the administrative appeal is dismissed and the commissioner
is no longer required to make a determination of appeal under subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for all administrative appeals filed after
June 30, 2017.
new text end

Sec. 10.

Minnesota Statutes 2016, section 270C.38, subdivision 1, is amended to read:

Subdivision 1.

Sufficient notice.

(a) If no method of notification of a written
determination or action of the commissioner is otherwise specifically provided for by law,
notice of the determination or action sent postage prepaid by United States mail to the
taxpayer or other person affected by the determination or action at the taxpayer's or person's
last known address, is sufficient. If the taxpayer or person being notified is deceased or is
under a legal disability, or, in the case of a corporation being notified that has terminated
its existence, notice to the last known address of the taxpayer, person, or corporation is
sufficient, unless the department has been provided with a new address by a party authorized
to receive notices from the commissioner.

(b) If a taxpayer or other person agrees to accept notification by electronic means, notice
of a determination or action of the commissioner sent by electronic mail to the taxpayer's
or person's last known electronic mailing address as provided for in section 325L.08 is
sufficient.

new text begin (c) Notice of a determination or action of the commissioner is sufficient if it is sent on
or before the notice date designated by the commissioner on the notice.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for notices dated after December 31,
2017.
new text end

Sec. 11.

Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Enforcement; limitations. new text end

new text begin (a) Notwithstanding any other law, the imposition
of a penalty or any other action against a tax return preparer authorized by subdivision 6
with respect to a return may be taken by the commissioner within the period provided by
section 289A.38 to assess tax on that return.
new text end

new text begin (b) Imposition of a penalty or other action against a tax return preparer authorized by
subdivision 6 other than with respect to a return must be taken by the commissioner within
five years of the violation of statute.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax preparation services provided
after the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read:

Subd. 5.

Removal from list.

The commissioner shall remove the name of a tax preparer
from the list of tax preparers published under this section:

(1) when the commissioner determines that the name was included on the list in error;

(2) within deleted text begin 90 days deleted text end new text begin three years new text end after the preparer has demonstrated to the commissioner
that the preparer fully paid all fines new text begin or penalties new text end imposed, served any suspension, satisfied
any sentence imposed, new text begin successfully completed any probationary period imposed, new text end and
successfully completed any remedial actions required by the commissioner, the State Board
of Accountancy, or the Lawyers Board of Professional Responsibility; or

(3) when the commissioner has been notified that the tax preparer is deceased.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13.

Minnesota Statutes 2016, section 270C.72, subdivision 4, is amended to read:

Subd. 4.

Licensing authority; duties.

All licensing authorities must require the applicant
to provide the applicant's Social Security number new text begin or individual taxpayer identification
number new text end and Minnesota business identification number new text begin , as applicable, new text end on all license
applications. Upon request of the commissioner, the licensing authority must provide the
commissioner with a list of all applicants, including the name, address, business name and
address, new text begin and new text end Social Security number deleted text begin , deleted text end new text begin or individual taxpayer identification number new text end and
business identification number new text begin , as applicable, new text end of each applicant. The commissioner may
request from a licensing authority a list of the applicants no more than once each calendar
year.

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.

Minnesota Statutes 2016, section 271.06, subdivision 2, is amended to read:

Subd. 2.

Time; notice; intervention.

Except as otherwise provided by law, within 60
days after new text begin the new text end notice deleted text begin of the making and filing deleted text end new text begin date new text end of an order of the commissioner of revenue,
the appellant, or the appellant's attorney, shall serve a notice of appeal upon the commissioner
and file the original, with proof of such service, with the Tax Court administrator or with
the court administrator of district court acting as court administrator of the Tax Court;
provided, that the Tax Court, for cause shown, may by written order extend the time for
appealing for an additional period not exceeding 30 days. new text begin For purposes of this section,
"notice date" means the notice date designated by the commissioner on the order. new text end The notice
of appeal shall be in the form prescribed by the Tax Court. Within five days after receipt,
the commissioner shall transmit a copy of the notice of appeal to the attorney general. The
attorney general shall represent the commissioner, if requested, upon all such appeals except
in cases where the attorney general has appealed in behalf of the state, or in other cases
where the attorney general deems it against the interests of the state to represent the
commissioner, in which event the attorney general may intervene or be substituted as an
appellant in behalf of the state at any stage of the proceedings.

Upon a final determination of any other matter over which the court is granted jurisdiction
under section 271.01, subdivision 5, the taxpayer or the taxpayer's attorney shall file a
petition or notice of appeal as provided by law with the court administrator of district court,
acting in the capacity of court administrator of the Tax Court, with proof of service of the
petition or notice of appeal as required by law and within the time required by law. As used
in this subdivision, "final determination" includes a notice of assessment and equalization
for the year in question received from the local assessor, an order of the local board of
equalization, or an order of a county board of equalization.

The Tax Court shall prescribe a filing system so that the notice of appeal or petition filed
with the district court administrator acting as court administrator of the Tax Court is
forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning
property valuation for which the assessor, a local board of equalization, a county board of
equalization or the commissioner of revenue has issued an order, the officer issuing the
order shall be notified of the filing of the appeal. The notice of appeal or petition shall be
in the form prescribed by the Tax Court.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December 31,
2017.
new text end

Sec. 15.

Minnesota Statutes 2016, section 271.06, subdivision 7, is amended to read:

Subd. 7.

Rules.

Except as provided in section 278.05, subdivision 6, the Rules of
Evidence and Civil Procedure for the district court of Minnesota shall govern the procedures
in the Tax Court, where practicable. new text begin The Rules of Civil Procedure do not apply to alter the
60-day period of time to file a notice of appeal provided in subdivision 2. new text end The Tax Court
may adopt rules under chapter 14.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December 31,
2017.
new text end

Sec. 16.

Minnesota Statutes 2016, section 272.02, subdivision 10, is amended to read:

Subd. 10.

Personal property used for pollution control.

Personal property used
primarily for the abatement and control of air, water, or land pollution is exempt to the
extent that it is so used, and real property is exempt if it is used primarily for abatement and
control of air, water, or land pollution as part of an agricultural operation, as a part of a
centralized treatment and recovery facility operating under a permit issued by the Minnesota
Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota Rules, parts
7001.0500 to 7001.0730, and 7045.0020 to 7045.1030, as a wastewater treatment facility
and for the treatment, recovery, and stabilization of metals, oils, chemicals, water, sludges,
or inorganic materials from hazardous industrial wastes, or as part of an electric generation
system. For purposes of this subdivision, personal property includes ponderous machinery
and equipment used in a business or production activity that at common law is considered
real property.

Any taxpayer requesting exemption of all or a portion of any real property or any
equipment or device, or part thereof, operated primarily for the control or abatement of air,
water, or land pollution shall file an application with the commissioner of revenue. The
commissioner shall develop an electronic means to notify interested parties when electric
power generation facilities have filed an application. new text begin The commissioner shall prescribe the
content, format, and manner of the application pursuant to section 270C.30, except that a
"law administered by the commissioner" includes the property tax laws, and if an application
is made by electronic means, the taxpayer's signature is defined pursuant to section 270C.304,
except that a "law administered by the commissioner" includes the property tax laws. new text end The
Minnesota Pollution Control Agency shall upon request of the commissioner furnish
information and advice to the commissioner.

The information and advice furnished by the Minnesota Pollution Control Agency must
include statements as to whether the equipment, device, or real property meets a standard,
rule, criteria, guideline, policy, or order of the Minnesota Pollution Control Agency, and
whether the equipment, device, or real property is installed or operated in accordance with
it. On determining that property qualifies for exemption, the commissioner shall issue an
order exempting the property from taxation. The commissioner shall develop an electronic
means to notify interested parties when the commissioner has issued an order exempting
property from taxation under this subdivision. The equipment, device, or real property shall
continue to be exempt from taxation as long as the order issued by the commissioner remains
in effect.

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.

Minnesota Statutes 2016, section 272.0211, subdivision 1, is amended to read:

Subdivision 1.

Efficiency determination and certification.

An owner or operator of a
new or existing electric power generation facility, excluding wind energy conversion systems,
may apply to the commissioner of revenue for a market value exclusion on the property as
provided for in this section. This exclusion shall apply only to the market value of the
equipment of the facility, and shall not apply to the structures and the land upon which the
facility is located. The commissioner of revenue shall prescribe the deleted text begin forms deleted text end new text begin content, format,
manner, new text end and procedures for this application new text begin pursuant to section 270C.30, except that a "law
administered by the commissioner" includes the property tax laws. If an application is made
by electronic means, the taxpayer's signature is defined pursuant to section 270C.304, except
that a "law administered by the commissioner" includes the property tax laws new text end . Upon receiving
the application, the commissioner of revenue shall: (1) request the commissioner of commerce
to make a determination of the efficiency of the applicant's electric power generation facility;
and (2) shall develop an electronic means to notify interested parties when electric power
generation facilities have filed an application. The commissioner of commerce shall calculate
efficiency as the ratio of useful energy outputs to energy inputs, expressed as a percentage,
based on the performance of the facility's equipment during normal full load operation. The
commissioner must include in this formula the energy used in any on-site preparation of
materials necessary to convert the materials into the fuel used to generate electricity, such
as a process to gasify petroleum coke. The commissioner shall use the Higher Heating Value
(HHV) for all substances in the commissioner's efficiency calculations, except for wood
for fuel in a biomass-eligible project under section 216B.2424; for these instances, the
commissioner shall adjust the heating value to allow for energy consumed for evaporation
of the moisture in the wood. The applicant shall provide the commissioner of commerce
with whatever information the commissioner deems necessary to make the determination.
Within 30 days of the receipt of the necessary information, the commissioner of commerce
shall certify the findings of the efficiency determination to the commissioner of revenue
and to the applicant. The commissioner of commerce shall determine the efficiency of the
facility and certify the findings of that determination to the commissioner of revenue every
two years thereafter from the date of the original certification.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 18.

Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read:

Subdivision 1.

Statement of exemption.

(a) Except in the case of property owned by
the state of Minnesota or any political subdivision thereof, and property exempt from taxation
under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times
provided in subdivision 3, a taxpayer claiming an exemption from taxation on property
described in section 272.02, subdivisions 2 to 33, must file a statement of exemption with
the assessor of the assessment district in which the property is located.

(b) A taxpayer claiming an exemption from taxation on property described in section
272.02, subdivision 10, must file a statement of exemption with the commissioner of revenue,
on or before February 15 of each year for which the taxpayer claims an exemption.

(c) In case of sickness, absence or other disability or for good cause, the assessor or the
commissioner may extend the time for filing the statement of exemption for a period not to
exceed 60 days.

(d) The commissioner of revenue shall prescribe the deleted text begin form and contents deleted text end new text begin content, format,
and manner new text end of the statement of exemption new text begin pursuant to section 270C.30, except that a "law
administered by the commissioner" includes the property tax laws new text end .

new text begin (e) If a statement is made by electronic means, the taxpayer's signature is defined pursuant
to section 270C.304, except that a "law administered by the commissioner" includes the
property tax laws.
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. 19.

Minnesota Statutes 2016, section 272.029, subdivision 4, is amended to read:

Subd. 4.

Reports.

(a) An owner of a wind energy conversion system subject to tax under
subdivision 3 shall file a report with the commissioner of revenue annually on or before
deleted text begin February 1 deleted text end new text begin January 15 new text end detailing the amount of electricity in kilowatt-hours that was produced
by the wind energy conversion system for the previous calendar year. The commissioner
shall prescribe the deleted text begin form deleted text end new text begin content, format, and manner new text end of the report new text begin pursuant to section
270C.30, except that a "law administered by the commissioner" includes the property tax
laws new text end . The report must contain the information required by the commissioner to determine
the tax due to each county under this section for the current year. If an owner of a wind
energy conversion system subject to taxation under this section fails to file the report by
the due date, the commissioner of revenue shall determine the tax based upon the nameplate
capacity of the system multiplied by a capacity factor of 60 percent.

new text begin (b) If a report is made by electronic means, the taxpayer's signature is defined pursuant
to section 270C.304, except that a "law administered by the commissioner" includes the
property tax laws.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end On or before February 28, the commissioner of revenue shall notify the owner
of the wind energy conversion systems of the tax due to each county for the current year
and shall certify to the county auditor of each county in which the systems are located the
tax due from each owner for the current year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except
that the amendment in paragraph (a) moving the date to file the report is effective for reports
filed in 2018 and thereafter.
new text end

Sec. 20.

Minnesota Statutes 2016, section 272.0295, subdivision 4, is amended to read:

Subd. 4.

Reports.

An owner of a solar energy generating system subject to tax under
this section shall file a report with the commissioner of revenue annually on or before
January 15 detailing the amount of electricity in megawatt-hours that was produced by the
system in the previous calendar year. The commissioner shall prescribe the deleted text begin form deleted text end new text begin content,
format, and manner new text end of the report new text begin pursuant to section 270C.30 new text end . The report must contain the
information required by the commissioner to determine the tax due to each county under
this section for the current year. If an owner of a solar energy generating system subject to
taxation under this section fails to file the report by the due date, the commissioner of
revenue shall determine the tax based upon the nameplate capacity of the system multiplied
by a capacity factor of 30 percent.

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 2016, section 272.115, subdivision 2, is amended to read:

Subd. 2.

Form; information required.

The certificate of value shall require such facts
and information as may be determined by the commissioner to be reasonably necessary in
the administration of the state education aid formulas. The deleted text begin form deleted text end new text begin commissioner shall prescribe
the content, format, and manner new text end of the certificate of value deleted text begin shall be prescribed by the
Department of Revenue which shall provide an adequate supply of forms to each county
auditor deleted text end new text begin pursuant to section 270C.30, except that a "law administered by the commissioner"
includes the property tax laws 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. 22.

Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read:

Subd. 13.

Homestead application.

(a) A person who meets the homestead requirements
under subdivision 1 must file a homestead application with the county assessor to initially
obtain homestead classification.

(b) deleted text begin The format and contents of a uniform homestead application shall be prescribed by
the commissioner of revenue. deleted text end new text begin The commissioner shall prescribe the content, format, and
manner of the homestead application required to be filed under this chapter pursuant to
section 270C.30. new text end The application must clearly inform the taxpayer that this application must
be signed by all owners who occupy the property or by the qualifying relative and returned
to the county assessor in order for the property to receive homestead treatment.

(c) Every property owner applying for homestead classification must furnish to the
county assessor the Social Security number of each occupant who is listed as an owner of
the property on the deed of record, the name and address of each owner who does not occupy
the property, and the name and Social Security number of each owner's spouse who occupies
the property. The application must be signed by each owner who occupies the property and
by each owner's spouse who occupies the property, or, in the case of property that qualifies
as a homestead under subdivision 1, paragraph (c), by the qualifying relative.

If a property owner occupies a homestead, the property owner's spouse may not claim
another property as a homestead unless the property owner and the property owner's spouse
file with the assessor an affidavit or other proof required by the assessor stating that the
property qualifies as a homestead under subdivision 1, paragraph (e).

Owners or spouses occupying residences owned by their spouses and previously occupied
with the other spouse, either of whom fail to include the other spouse's name and Social
Security number on the homestead application or provide the affidavits or other proof
requested, will be deemed to have elected to receive only partial homestead treatment of
their residence. The remainder of the residence will be classified as nonhomestead residential.
When an owner or spouse's name and Social Security number appear on homestead
applications for two separate residences and only one application is signed, the owner or
spouse will be deemed to have elected to homestead the residence for which the application
was signed.

(d) If residential real estate is occupied and used for purposes of a homestead by a relative
of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for
the property to receive homestead status, a homestead application must be filed with the
assessor. The Social Security number of each relative and spouse of a relative occupying
the property shall be required on the homestead application filed under this subdivision. If
a different relative of the owner subsequently occupies the property, the owner of the property
must notify the assessor within 30 days of the change in occupancy. The Social Security
number of a relative or relative's spouse occupying the property is private data on individuals
as defined by section 13.02, subdivision 12, but may be disclosed to the commissioner of
revenue, or, for the purposes of proceeding under the Revenue Recapture Act to recover
personal property taxes owing, to the county treasurer.

(e) The homestead application shall also notify the property owners that if the property
is granted homestead status for any assessment year, that same property shall remain
classified as homestead until the property is sold or transferred to another person, or the
owners, the spouse of the owner, or the relatives no longer use the property as their
homestead. Upon the sale or transfer of the homestead property, a certificate of value must
be timely filed with the county auditor as provided under section 272.115. Failure to notify
the assessor within 30 days that the property has been sold, transferred, or that the owner,
the spouse of the owner, or the relative is no longer occupying the property as a homestead,
shall result in the penalty provided under this subdivision and the property will lose its
current homestead status.

(f) If a homestead application has not been filed with the county by December 15, the
assessor shall classify the property as nonhomestead for the current assessment year for
taxes payable in the following year, provided that the owner may be entitled to receive the
homestead classification by proper application under section 375.192.

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 2016, section 273.371, is amended to read:

273.371 REPORTS OF UTILITY COMPANIES.

Subdivision 1.

Report required.

Every electric light, power, gas, water, express, stage,
deleted text begin and deleted text end transportation deleted text begin company deleted text end new text begin , new text end and pipeline new text begin company new text end doing business in Minnesota shall
annually file with the commissioner on or before March 31 a report under oath setting forth
the information prescribed by the commissioner to enable the commissioner to make
valuations, recommended valuations, and equalization required under sections 273.33,
273.35, 273.36, 273.37, and 273.3711. new text begin The commissioner shall prescribe the content, format,
and manner of the report pursuant to section 270C.30, except that a "law administered by
the commissioner" includes the property tax laws. new text end If all the required information is not
available on March 31, the company or pipeline shall file the information that is available
on or before March 31, and the balance of the information as soon as it becomes available. new text begin
If a report is made by electronic means, the taxpayer's signature is defined pursuant to section
270C.304, except that a "law administered by the commissioner" includes the property tax
laws.
new text end

Subd. 2.

Extension.

The commissioner for good cause may extend the time for filing
the report required by subdivision 1. The extension deleted text begin may deleted text end new text begin must new text end not exceed 15 days.

new text begin Subd. 3. new text end

new text begin Reports filed by the commissioner. new text end

new text begin If a company fails to file a report required
by subdivision 1, the commissioner may, from information in the commissioner's possession
or obtainable by the commissioner, make and file a report for the company or make the
valuations, recommended valuations, and equalizations required under sections 273.33,
273.35 to 273.37, and 273.3711.
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. 24.

Minnesota Statutes 2016, section 287.2205, is amended to read:

287.2205 TAX-FORFEITED LAND.

Before a state deed for tax-forfeited land may be issued, the deed tax must be paid by
the purchaser of tax-forfeited land whether the purchase is the result of a public auction or
private sale or a repurchase of tax-forfeited land. State agencies and local units of government
that acquire tax-forfeited land by purchase or any other means are subject to this section.
The deed tax is $1.65 for a conveyance of tax-forfeited lands to a governmental subdivision
for an authorized public use under section 282.01, subdivision 1a, new text begin for a school forest under
section 282.01, subdivision 1a, new text end or for redevelopment purposes under section 282.01,
subdivision 1b.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 25.

Minnesota Statutes 2016, section 289A.08, is amended by adding a subdivision
to read:

new text begin Subd. 17. new text end

new text begin Format. new text end

new text begin The commissioner shall prescribe the content, format, and manner
of the returns and other documents pursuant to section 270C.30. This does not authorize
the commissioner to require individual income taxpayers to file individual income tax returns
electronically.
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. 26.

Minnesota Statutes 2016, section 289A.09, subdivision 1, is amended to read:

Subdivision 1.

Returns.

(a) An employer who is required to deduct and withhold tax
under section 290.92, subdivision 2a or 3, and a person required to deduct and withhold tax
under section 290.923, subdivision 2, must file a return with the commissioner for each
quarterly period unless otherwise prescribed by the commissioner.

(b) A person or corporation required to make deposits under section 290.9201, subdivision
8, must file an entertainer withholding tax return with the commissioner.

(c) A person required to withhold an amount under section 290.9705, subdivision 1,
must file a return.

(d) A partnership required to deduct and withhold tax under section 290.92, subdivision
4b, must file a return.

(e) An S corporation required to deduct and withhold tax under section 290.92,
subdivision 4c, must also file a return.

(f) deleted text begin Returns must be filed in the form and manner, and contain the information prescribed
by the commissioner. deleted text end new text begin The commissioner shall prescribe the content, format, and manner
of the returns pursuant to section 270C.30. new text end Every return for taxes withheld must be signed
by the employer, entertainment entity, contract payor, partnership, or S corporation, or a
designee.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 27.

Minnesota Statutes 2016, section 289A.11, subdivision 1, is amended to read:

Subdivision 1.

Return required.

(a) Except as provided in section 289A.18, subdivision
4, for the month in which taxes imposed by chapter 297A are payable, or for which a return
is due, a return for the preceding reporting period must be filed with the commissioner deleted text begin in
the form and manner the commissioner prescribes deleted text end . new text begin The commissioner shall prescribe the
content, format, and manner of the returns pursuant to section 270C.30. new text end A person making
sales at retail at two or more places of business may file a consolidated return subject to
rules prescribed by the commissioner. In computing the dollar amount of items on the return,
the amounts are rounded off to the nearest whole dollar, disregarding amounts less than 50
cents and increasing amounts of 50 cents to 99 cents to the next highest dollar.

(b) Notwithstanding this subdivision, a person who is not required to hold a sales tax
permit under chapter 297A and who makes annual purchases, for use in a trade or business,
of less than $18,500, or a person who is not required to hold a sales tax permit and who
makes purchases for personal use, that are subject to the use tax imposed by section 297A.63,
may file an annual use tax return deleted text begin on a form prescribed by the commissioner deleted text end . new text begin The
commissioner shall prescribe the content, format, and manner of the return pursuant to
section 270C.30. new text end If a person who qualifies for an annual use tax reporting period is required
to obtain a sales tax permit or makes use tax purchases, for use in a trade or business, in
excess of $18,500 during the calendar year, the reporting period must be considered ended
at the end of the month in which the permit is applied for or the purchase in excess of
$18,500 is made and a return must be filed for the preceding reporting period.

(c) Notwithstanding deleted text begin paragraph deleted text end new text begin paragraphs new text end (a) new text begin and (b) new text end , a person prohibited by the person's
religious beliefs from using electronics shall be allowed to file by mail, without any additional
fees. The filer must notify the commissioner of revenue of the intent to file by mail on a
form prescribed by the commissioner. A return filed under this paragraph must be postmarked
no later than the day the return is due in order to be considered filed on a timely basis.

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.

Minnesota Statutes 2016, section 289A.18, subdivision 1, is amended to read:

Subdivision 1.

Individual income, fiduciary income, corporate franchise, and
entertainment taxes; partnership and S corporation returns; information returns;
mining company returns.

The returns required to be made under sections 289A.08 and
289A.12 must be filed at the following times:

(1) returns made on the basis of the calendar year must be filed on April 15 following
the close of the calendar year, except that returns of corporations new text begin and partnerships new text end must be
filed on the due date for filing the federal income tax return;

(2) returns made on the basis of the fiscal year must be filed on the 15th day of the fourth
month following the close of the fiscal year, except that returns of corporations new text begin and
partnerships new text end must be filed on the due date for filing the federal income tax return;

(3) returns for a fractional part of a year must be filed on the due date for filing the
federal income tax return;

(4) in the case of a final return of a decedent for a fractional part of a year, the return
must be filed on the 15th day of the fourth month following the close of the 12-month period
that began with the first day of that fractional part of a year;

(5) in the case of the return of a cooperative association, returns must be filed on or
before the 15th day of the ninth month following the close of the taxable year;

(6) if a corporation has been divested from a unitary group and files a return for a
fractional part of a year in which it was a member of a unitary business that files a combined
report under section 290.17, subdivision 4, the divested corporation's return must be filed
on the 15th day of the third month following the close of the common accounting period
that includes the fractional year;

(7) returns of entertainment entities must be filed on April 15 following the close of the
calendar year;

(8) returns required to be filed under section 289A.08, subdivision 4, must be filed on
the 15th day of the fifth month following the close of the taxable year;

(9) returns of mining companies must be filed on May 1 following the close of the
calendar year; and

(10) returns required to be filed with the commissioner under section 289A.12,
subdivision 2, 4 to 10, or 16 must be filed within 30 days after being demanded by the
commissioner.

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.

Minnesota Statutes 2016, section 289A.37, subdivision 2, is amended to read:

Subd. 2.

Erroneous refunds.

deleted text begin An erroneous refund is considered an underpayment of
tax on the date made. An assessment of a deficiency arising out of an erroneous refund may
be made at any time within two years from the making of the refund. If part of the refund
was induced by fraud or misrepresentation of a material fact, the assessment may be made
at any time. deleted text end new text begin (a) Except as provided in paragraph (b), an erroneous refund occurs when the
commissioner issues a payment to a person that exceeds the amount the person is entitled
to receive under law. An erroneous refund is considered an underpayment of tax on the date
issued.
new text end

new text begin (b) To the extent that the amount paid does not exceed the amount claimed by the
taxpayer, an erroneous refund does not include the following:
new text end

new text begin (1) any amount of a refund or credit paid pursuant to a claim for refund filed by a
taxpayer, including but not limited to refunds of claims made under section 290.06,
subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068;
290.0681; or 290.0692; or chapter 290A; or
new text end

new text begin (2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a
taxpayer.
new text end

new text begin (c) The commissioner may make an assessment to recover an erroneous refund at any
time within two years from the issuance of the erroneous refund. If all or part of the erroneous
refund was induced by fraud or misrepresentation of a material fact, the assessment may
be made at any time.
new text end

new text begin (d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be
conducted under section 289A.38.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 30.

Minnesota Statutes 2016, section 289A.50, subdivision 7, is amended to read:

Subd. 7.

Remedies.

(a) If the taxpayer is notified by the commissioner that the refund
claim is denied in whole or in part, the taxpayer may:

(1) file an administrative appeal as provided in section 270C.35, or an appeal with the
Tax Court, within 60 days after deleted text begin issuance deleted text end new text begin the notice date new text end of the commissioner's notice of
denial; or

(2) file an action in the district court to recover the refund.

(b) An action in the district court on a denied claim for refund must be brought within
18 months of the new text begin notice new text end date of the denial of the claim by the commissioner. new text begin For the purposes
of this section, "notice date" has the meaning given in section 270C.35, subdivision 3.
new text end

(c) No action in the district court or the Tax Court shall be brought within six months
of the filing of the refund claim unless the commissioner denies the claim within that period.

(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial
of the claim, the taxpayer may bring an action in the district court or the Tax Court at any
time after the expiration of six months from the time the claim was filed.

(e) The commissioner and the taxpayer may agree to extend the period for bringing an
action in the district court.

(f) An action for refund of tax by the taxpayer must be brought in the district court of
the district in which lies the county of the taxpayer's residence or principal place of business.
In the case of an estate or trust, the action must be brought at the principal place of its
administration. Any action may be brought in the district court for Ramsey County.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims for refund denied after
December 31, 2017.
new text end

Sec. 31.

new text begin [290B.11] FORMS.
new text end

new text begin 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.
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. 32.

new text begin [293.15] FORMS.
new text end

new text begin 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.
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. 33.

Minnesota Statutes 2016, section 295.55, subdivision 6, is amended to read:

Subd. 6.

Form of returns.

deleted text begin The estimated payments and annual return must contain the
information and be in the form prescribed by the commissioner. deleted text end new text begin The commissioner shall
prescribe the content, format, and manner of the estimated payment forms and annual return
pursuant to section 270C.30.
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. 34.

Minnesota Statutes 2016, section 296A.02, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Forms. new text end

new text begin 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.
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. 35.

Minnesota Statutes 2016, section 296A.22, subdivision 9, is amended to read:

Subd. 9.

Abatement of penalty.

(a) The commissioner may by written order abate any
penalty imposed under this section, if in the commissioner's opinion there is reasonable
cause to do so.

(b) A request for abatement of penalty must be filed with the commissioner within 60
days of the new text begin notice new text end date new text begin of new text end the deleted text begin notice stating that a deleted text end penalty deleted text begin has been imposed was mailed to
the taxpayer's last known address deleted text end . new text begin For purposes of this section, "notice date" means the
notice date designated by the commissioner on the order or other notice that a penalty has
been imposed.
new text end

(c) If the commissioner issues an order denying a request for abatement of penalty, the
taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to Tax
Court as provided in section 271.06. If the commissioner does not issue an order on the
abatement request within 60 days from the date the request is received, the taxpayer may
appeal to Tax Court as provided in section 271.06.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders and notices dated after
December 31, 2017.
new text end

Sec. 36.

Minnesota Statutes 2016, section 296A.26, is amended to read:

296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT.

In lieu of an administrative appeal under section 270C.35, any person aggrieved by an
order of the commissioner fixing a tax, penalty, or interest under this chapter may, within
60 days from the new text begin notice new text end date of deleted text begin the notice of deleted text end the order, appeal to the Tax Court in the manner
provided under section 271.06. new text begin For purposes of this section, "notice date" means the notice
date designated by the commissioner on the order fixing a tax, penalty, or interest.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December 31,
2017.
new text end

Sec. 37.

Minnesota Statutes 2016, section 297D.02, is amended to read:

297D.02 ADMINISTRATION.

The commissioner of revenue shall administer this chapter. new text begin 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. new text end 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 38.

Minnesota Statutes 2016, section 297E.02, subdivision 3, is amended to read:

Subd. 3.

Collection; disposition.

(a) Taxes imposed by this section are due and payable
to the commissioner when the gambling tax return is required to be filed. Distributors must
file their monthly sales figures with the commissioner on a form prescribed by the
commissioner. Returns covering the taxes imposed under this section must be filed with
the commissioner on or before the 20th day of the month following the close of the previous
calendar month. deleted text begin The commissioner may require that the returns be filed via magnetic media
or electronic data transfer. deleted text end new text begin The commissioner shall prescribe the content, format, and manner
of returns or other documents pursuant to section 270C.30. new text end The proceeds, along with the
revenue received from all license fees and other fees under sections 349.11 to 349.191,
349.211, and 349.213, must be paid to the commissioner of management and budget for
deposit in the general fund.

(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by the
distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards by
the organization is exempt from taxes imposed by chapter 297A and is exempt from all
local taxes and license fees except a fee authorized under section 349.16, subdivision 8.

(c) One-half of one percent of the revenue deposited in the general fund under paragraph
(a), is appropriated to the commissioner of human services for the compulsive gambling
treatment program established under section 245.98. One-half of one percent of the revenue
deposited in the general fund under paragraph (a), is appropriated to the commissioner of
human services for a grant to the state affiliate recognized by the National Council on
Problem Gambling to increase public awareness of problem gambling, education and training
for individuals and organizations providing effective treatment services to problem gamblers
and their families, and research relating to problem gambling. Money appropriated by this
paragraph must supplement and must not replace existing state funding for these programs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 39.

Minnesota Statutes 2016, section 297E.04, subdivision 1, is amended to read:

Subdivision 1.

Reports of sales.

A manufacturer who sells gambling product for use or
resale in this state, or for receipt by a person or entity in this state, shall file with the
commissioner, on a form prescribed by the commissioner, a report of gambling product
sold to any person in the state, including the established governing body of an Indian tribe
recognized by the United States Department of the Interior. The report must be filed monthly
on or before the 20th day of the month succeeding the month in which the sale was made.
deleted text begin The commissioner may require that the report be submitted via magnetic media or electronic
data transfer. deleted text end new text begin The commissioner shall prescribe the content, format, and manner of returns
or other documents pursuant to section 270C.30. new text end The commissioner may inspect the premises,
books, records, and inventory of a manufacturer without notice during the normal business
hours of the manufacturer. A person violating this section is guilty of a misdemeanor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 40.

Minnesota Statutes 2016, section 297E.05, subdivision 4, is amended to read:

Subd. 4.

Reports.

A distributor shall report monthly to the commissioner, on a form the
commissioner prescribes, its sales of each type of gambling product. This report must be
filed monthly on or before the 20th day of the month succeeding the month in which the
sale was made. deleted text begin The commissioner may require that a distributor submit the monthly report
and invoices required in this subdivision via magnetic media or electronic data transfer. deleted text end new text begin
The commissioner shall prescribe the content, format, and manner of returns or other
documents pursuant to section 270C.30.
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. 41.

Minnesota Statutes 2016, section 297E.06, subdivision 1, is amended to read:

Subdivision 1.

Reports.

An organization must file with the commissioner, on a form
prescribed by the commissioner, a report showing all gambling activity conducted by that
organization for each month. Gambling activity includes all gross receipts, prizes, all
gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful
purpose and board-approved expenditures. The report must be filed with the commissioner
on or before the 20th day of the month following the month in which the gambling activity
takes place. deleted text begin The commissioner may require that the reports be filed via magnetic media or
electronic data transfer. deleted text end new text begin The commissioner shall prescribe the content, format, and manner
of returns or other documents pursuant to section 270C.30.
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. 42.

Minnesota Statutes 2016, section 297F.09, subdivision 1, is amended to read:

Subdivision 1.

Monthly return; cigarette distributor.

On or before the 18th day of
each calendar month, a distributor with a place of business in this state shall file a return
with the commissioner showing the quantity of cigarettes manufactured or brought in from
outside the state or purchased during the preceding calendar month and the quantity of
cigarettes sold or otherwise disposed of in this state and outside this state during that month.
A licensed distributor outside this state shall in like manner file a return showing the quantity
of cigarettes shipped or transported into this state during the preceding calendar month.
deleted text begin Returns must be made in the form and manner prescribed by deleted text end The commissioner new text begin shall
prescribe the content, format, and manner of returns pursuant to section 270C.30, new text end and new text begin the
returns new text end must contain any other information required by the commissioner. The return must
be accompanied by a remittance for the full unpaid tax liability shown by it. For distributors
subject to the accelerated tax payment requirements in subdivision 10, the return for the
May liability is due two business days before June 30th of the year and the return for the
June liability is due on or before August 18th of the year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 43.

Minnesota Statutes 2016, section 297F.23, is amended to read:

297F.23 JUDICIAL REVIEW.

In lieu of an administrative appeal under section 270C.35, a person aggrieved by an
order of the commissioner fixing a tax, penalty, or interest under this chapter may, within
60 days from the new text begin notice new text end date of deleted text begin the notice of deleted text end the order, appeal to the Tax Court in the manner
provided under section 271.06. new text begin For purposes of this section, "notice date" means the notice
date designated by the commissioner on the order fixing a tax, penalty, or interest.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December 31,
2017.
new text end

Sec. 44.

Minnesota Statutes 2016, section 297G.09, subdivision 1, is amended to read:

Subdivision 1.

Monthly returns; manufacturers, wholesalers, brewers, or importers.

On or before the 18th day of each calendar month following the month in which a licensed
manufacturer or wholesaler first sells wine and distilled spirits within the state, or a brewer
or importer first sells or imports fermented malt beverages, or a wholesaler knowingly
acquires title to or possession of untaxed fermented malt beverages, the licensed
manufacturer, wholesaler, brewer, or importer liable for the excise tax must file a return
with the commissioner, and in addition must keep records and render reports as required
by the commissioner. deleted text begin Returns must be made in a form and manner prescribed by the
commissioner, and deleted text end new text begin The commissioner shall prescribe the content, format, and manner of
returns pursuant to section 270C.30. The returns new text end must contain any other information required
by the commissioner. Returns must be accompanied by a remittance for the full unpaid tax
liability. Returns must be filed regardless of whether a tax is due.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 45.

Minnesota Statutes 2016, section 297G.22, is amended to read:

297G.22 JUDICIAL REVIEW.

In lieu of an administrative appeal under this chapter, a person aggrieved by an order of
the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 days
from deleted text begin the date of deleted text end the notice new text begin date new text end of the order, appeal to the Tax Court in the manner provided
under section 271.06. new text begin For purposes of this section, "notice date" means the notice date
designated by the commissioner on the order fixing a tax, penalty, or interest.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December 31,
2017.
new text end

Sec. 46.

Minnesota Statutes 2016, section 297I.30, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Format. new text end

new text begin The commissioner shall prescribe the content, format, and manner
of returns or other documents pursuant to section 270C.30.
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. 47.

Minnesota Statutes 2016, section 297I.60, subdivision 2, is amended to read:

Subd. 2.

Remedies.

(a) If the taxpayer is notified that the refund claim is denied in whole
or in part, the taxpayer may contest the denial by:

(1) filing an administrative appeal with the commissioner under section 270C.35;

(2) filing an appeal in Tax Court within 60 days of the new text begin notice new text end date of the deleted text begin notice of deleted text end denial;
or

(3) filing an action in the district court to recover the refund.

(b) An action in the district court must be brought within 18 months deleted text begin following deleted text end new text begin of new text end the
new text begin notice new text end date of the deleted text begin notice of deleted text end denial. new text begin For purposes of this section, "notice date" has the meaning
given in section 270C.35, subdivision 3. new text end An action for refund of tax or surcharge must be
brought in the district court of the district in which lies the taxpayer's principal place of
business or in the District Court for Ramsey County. If a taxpayer files a claim for refund
and the commissioner has not issued a denial of the claim, the taxpayer may bring an action
in the district court or the Tax Court at any time after the expiration of six months from the
time the claim was filed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims for refund denied after
December 31, 2017.
new text end

Sec. 48.

Minnesota Statutes 2016, section 469.319, subdivision 5, is amended to read:

Subd. 5.

Waiver authority.

(a) The commissioner may waive all or part of a repayment
required under subdivision 1, if the commissioner, in consultation with the commissioner
of employment and economic development and appropriate officials from the local
government units in which the qualified business is located, determines that requiring
repayment of the tax is not in the best interest of the state or the local government units and
the business ceased operating as a result of circumstances beyond its control including, but
not limited to:

(1) a natural disaster;

(2) unforeseen industry trends; or

(3) loss of a major supplier or customer.

(b)(1) The commissioner shall waive repayment required under subdivision 1a if the
commissioner has waived repayment by the operating business under subdivision 1, unless
the person that received benefits without having to operate a business in the zone was a
contributing factor in the qualified business becoming subject to repayment under subdivision
1;

(2) the commissioner shall waive the repayment required under subdivision 1a, even if
the repayment has not been waived for the operating business if:

(i) the person that received benefits without having to operate a business in the zone and
the business that operated in the zone are not related parties as defined in section 267(b) of
the Internal Revenue Code of 1986, as amended through December 31, 2007; and

(ii) actions of the person were not a contributing factor in the qualified business becoming
subject to repayment under subdivision 1.

(c) Requests for waiver must be made no later than 60 days after the earlier of the notice
date of an order issued under subdivision 4, paragraph (d), or the date of a tax statement
issued under subdivision 4, paragraph (c). new text begin For purposes of this section, "notice date" means
the notice date designated by the commissioner on the order.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders of the commissioner of revenue
dated after December 31, 2017.
new text end

Sec. 49.

Laws 2016, chapter 187, section 5, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective for orders and notices dated after
deleted text begin September 30, 2015 deleted text end new text begin December 31, 2017 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from September 30, 2015.
new text end

ARTICLE 7

SUSTAINABLE FOREST INCENTIVE ACT PROVISIONS

Section 1.

Minnesota Statutes 2016, section 290C.03, is amended to read:

290C.03 ELIGIBILITY REQUIREMENTS.

(a) Land may be enrolled in the sustainable forest incentive program under this chapter
if all of the following conditions are met:

(1) the land consists of at least 20 contiguous acres and at least 50 percent of the land
must meet the definition of forest land in section 88.01, subdivision 7, during the enrollment;

(2) a forest management plan for the land must be new text begin (i) new text end prepared by an approved plan
writer and implemented during the period in which the land is enrolled new text begin , and (ii) registered
with the Department of Natural Resources new text end ;

(3) timber harvesting and forest management guidelines must be used in conjunction
with any timber harvesting or forest management activities conducted on the land during
the period in which the land is enrolled;

(4) the land must be enrolled for a minimum of eight years;

(5) there are no delinquent property taxes on the land; deleted text begin and
deleted text end

(6) claimants enrolling more than 1,920 acres in the sustainable forest incentive program
must allow year-round, nonmotorized access to fish and wildlife resources and motorized
access on established and maintained roads and trails, unless the road or trail is temporarily
closed for safety, natural resource, or road damage reasons on enrolled land except within
one-fourth mile of a permanent dwelling or during periods of high fire hazard as determined
by the commissioner of natural resources deleted text begin . deleted text end new text begin ; and
new text end

new text begin (7) the land is not classified as 2c managed forest land.
new text end

(b) Claimants required to allow access under paragraph (a), clause (6), do not by that
action:

(1) extend any assurance that the land is safe for any purpose;

(2) confer upon the person the legal status of an invitee or licensee to whom a duty of
care is owed; or

(3) assume responsibility for or incur liability for any injury to the person or property
caused by an act or omission of the person.

new text begin (c) A minimum of three acres must be excluded from enrolled land when the land is
improved with a structure that is not a minor, ancillary, or nonresidential structure. If land
does not meet the definition of forest land in section 290C.02, subdivision 6, because the
land is (1) enrolled in the reinvest in Minnesota program, (2) enrolled in a state or federal
conservation reserve or easement program under sections 103F.501 to 103F.531, (3) subject
to the Minnesota agricultural property tax under section 273.111, or (4) subject to agricultural
land preservation controls or restrictions as defined in section 40A.02 or the Metropolitan
Agricultural Preserves Act under chapter 473H, the entire parcel that contains the land is
not eligible to be enrolled in the program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin The amendment to paragraph (a), clause (2), is effective for
certifications filed after July 1, 2018. The amendment adding paragraph (a), clause (7), is
effective for certifications and applications due in 2017 and thereafter. The amendment
adding paragraph (c) is effective the day following final enactment.
new text end

Sec. 2.

new text begin [290C.051] VERIFICATION OF FOREST MANAGEMENT PLAN.
new text end

new text begin On request of the commissioner, the commissioner of natural resources must annually
provide verification that the claimant has a current forest management plan on file with the
Department of Natural Resources.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for certifications filed after July 1, 2018.
new text end

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, sections 290C.02, subdivisions 5 and 9; and 290C.06, 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 the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Statutes: S1219-1

281.22 COUNTY AUDITOR TO GIVE NOTICE.

In case any parcel of land bid in for the state at any tax judgment sale heretofore held has not been sold or assigned to an actual purchaser by one year before the expiration of the stated period of redemption of such parcel, it shall be the duty of the county auditor thereupon forthwith to give notice of expiration of the time for redemption of such parcel, as herein provided. Such notice shall be given and all other things done with respect to all such parcels, as provided by section 281.23, except that the notice shall state that the time for redemption will expire one year after service of notice and the filing of proof thereof, instead of 60 days. Otherwise, all the provisions of section 281.23 shall apply to and govern the corresponding matters under this section.

The time for redemption of any parcel of land as to which notice of expiration has been given, as provided in this section, shall expire one year after the giving of such notice and the filing of proof thereof in the office of the county auditor, unless such parcel shall theretofore be assigned to an actual purchaser, as herein provided.

290C.02 DEFINITIONS.

Subd. 5.

Current use value.

"Current use value" means the statewide average annual income per acre, multiplied by 90 percent and divided by the capitalization rate determined under subdivision 9. The statewide net annual income shall be a weighted average based on the most recent data as of July 1 of the computation year on stumpage prices and annual tree growth rates and acreage by cover type provided by the Department of Natural Resources and the United States Department of Agriculture Forest Service North Central Research Station.

Subd. 9.

Capitalization rate.

By July 1 of each year, the commissioner shall determine a statewide capitalization rate for use under this chapter. The rate shall be the average annual effective interest rate for St. Paul on new loans under the Farm Credit Bank system calculated under section 2032A(e)(7)(A) of the Internal Revenue Code.

290C.06 CALCULATION OF AVERAGE ESTIMATED MARKET VALUE; MANAGED FOREST LAND.

The commissioner shall annually calculate a statewide average estimated market value per acre for class 2c managed forest land under section 273.13, subdivision 23.

Repealed Minnesota Rule: S1219-1

8092.1400

[Repealed, L 2017 1Sp1 art 13 s 17]

8092.2000

[Repealed, L 2017 1Sp1 art 13 s 17]

8100.0700

[Repealed, L 2017 1Sp1 art 15 s 37]