1.1 A bill for an act
1.2 relating to financing state and local government;
1.3 providing a sales tax rebate; reducing individual
1.4 income tax rates; making changes to income, sales and
1.5 use, property, excise, mortgage registry and deed,
1.6 health care provider, motor fuels, cigarette and
1.7 tobacco, liquor, insurance premiums, aircraft
1.8 registration, lawful gambling, taconite production,
1.9 solid waste, estate, and special taxes; conforming
1.10 with changes in federal income tax provisions;
1.11 authorizing certain cities to impose sales taxes and
1.12 issue bonds; establishing an agricultural homestead
1.13 credit; changing and allowing tax credits,
1.14 subtractions, and exemptions; changing property tax
1.15 valuation, assessment, levy, classification,
1.16 homestead, credit, aid, exemption, review, appeal,
1.17 abatement, and distribution provisions; extending levy
1.18 limits and changing levy authority; authorizing
1.19 property tax abatements; reducing the rate of health
1.20 care provider taxes; reducing tax rates on lawful
1.21 gambling; changing tax increment financing law and
1.22 providing special authority for certain cities;
1.23 authorizing water and sanitary sewer districts;
1.24 providing for the funding of courts in certain
1.25 judicial districts; changing tax forfeiture and
1.26 delinquency provisions; changing and clarifying tax
1.27 administration, collection, enforcement, and penalty
1.28 provisions; freezing the taconite production tax and
1.29 providing for its distribution; regulating state and
1.30 local business subsidies; authorizing issuance of
1.31 certain local obligations; requiring the metropolitan
1.32 airports commission to provide funding for airport
1.33 noise mitigation projects; modifying payment of
1.34 certain aids to local units of government; providing
1.35 for funding for border cities; changing fiscal note
1.36 requirements; providing for deposit of tobacco
1.37 settlement funds; requiring tax rebates when there is
1.38 a budget surplus; requiring a study; authorizing
1.39 requirements to use alternative dispute resolution
1.40 processes in annexation and similar proceedings;
1.41 transferring funds; appropriating money; amending
1.42 Minnesota Statutes 1998, sections 3.986, subdivision
1.43 2; 3.987, subdivision 1; 16D.09; 60A.19, subdivision
1.44 6; 92.51; 97A.065, subdivision 2; 204B.135, by adding
1.45 a subdivision; 270.07, subdivision 1; 270.65; 270.67,
1.46 by adding a subdivision; 270.78; 270A.03, subdivision
2.1 2; 270A.07, subdivision 2; 270A.08, subdivision 2;
2.2 271.01, subdivision 5; 271.21, subdivision 2; 272.02,
2.3 subdivision 1; 272.027; 272.03, subdivision 6; 273.11,
2.4 subdivisions 1a and 16; 273.111, by adding a
2.5 subdivision; 273.124, subdivisions 1, 7, 8, 13, 14,
2.6 and by adding a subdivision; 273.13, subdivisions 22,
2.7 23, 24, 25, 31, and by adding a subdivision; 273.1382;
2.8 273.1398, subdivisions 1a, 2, 8, and by adding a
2.9 subdivision; 273.1399, subdivision 6; 273.20; 274.01,
2.10 subdivision 1; 275.70, subdivision 5; 275.71,
2.11 subdivisions 2, 3, and 4; 276.131; 279.37,
2.12 subdivisions 1, 1a, and 2; 281.23, subdivisions 2, 4,
2.13 and 6; 282.01, subdivisions 1, 4, and 7; 282.04,
2.14 subdivision 2; 282.05; 282.08; 282.09; 282.241;
2.15 282.261, subdivision 4, and by adding a subdivision;
2.16 283.10; 287.01, subdivision 3, as amended; 287.05,
2.17 subdivisions 1, as amended, and 1a, as amended;
2.18 289A.02, subdivision 7; 289A.18, subdivision 4;
2.19 289A.20, subdivision 4; 289A.31, subdivision 2;
2.20 289A.40, subdivisions 1 and 1a; 289A.50, subdivision
2.21 7, and by adding a subdivision; 289A.55, subdivision
2.22 9; 289A.56, subdivision 4; 289A.60, subdivisions 3 and
2.23 21; 290.01, subdivisions 7, 19, 19a, 19b, 19f, 19g,
2.24 31, and by adding a subdivision; 290.06, subdivisions
2.25 2c, 2d, and by adding subdivisions; 290.0671,
2.26 subdivision 1; 290.0674, subdivisions 1 and 2;
2.27 290.091, subdivisions 1, 2, and 6; 290.0921,
2.28 subdivision 5; 290.095, subdivision 3; 290.17,
2.29 subdivisions 3, 4, and 6; 290.191, subdivisions 2 and
2.30 3; 290.9725; 290.9726, by adding a subdivision;
2.31 290A.03, subdivisions 3, 6, and 15; 290B.03,
2.32 subdivision 1; 290B.04, subdivisions 2, 3, and 4;
2.33 290B.05, subdivision 1; 291.005, subdivision 1;
2.34 295.50, subdivision 4; 295.52, subdivision 7; 295.53,
2.35 subdivision 1; 295.55, subdivisions 2 and 3; 295.57,
2.36 by adding a subdivision; 296A.16, by adding
2.37 subdivisions; 297A.15, subdivision 5; 297A.25,
2.38 subdivisions 9, 63, 73, and by adding subdivisions;
2.39 297A.48, by adding subdivisions; 297E.01, by adding a
2.40 subdivision; 297E.02, subdivisions 1, 3, 4, and 6;
2.41 297F.01, subdivision 23; 297F.17, subdivision 6;
2.42 297H.05; 297H.06, subdivision 2; 298.22, subdivision
2.43 7; 298.24, subdivision 1; 298.28, subdivisions 9a and
2.44 9b; 298.296, subdivision 4; 299D.03, subdivision 5;
2.45 357.021, subdivision 1a; 360.55, by adding a
2.46 subdivision; 373.40, subdivision 1; 375.18,
2.47 subdivision 12; 375.192, subdivision 2; 383C.482,
2.48 subdivision 1; 414.11; 462A.071, subdivision 2;
2.49 465.82, by adding a subdivision; 469.002, subdivision
2.50 10; 469.012, subdivision 1; 469.169, subdivision 12,
2.51 and by adding a subdivision; 469.1735, by adding a
2.52 subdivision; 469.176, subdivision 4g; 469.1763, by
2.53 adding a subdivision; 469.1771, subdivision 1, and by
2.54 adding a subdivision; 469.1791, subdivision 3;
2.55 469.1813, subdivisions 1, 2, 3, 6, and by adding
2.56 subdivisions; 469.1815, subdivision 2; 473.252,
2.57 subdivision 2; 475.52, subdivisions 1, 3, and 4;
2.58 477A.011, subdivision 36; 477A.03, subdivision 2;
2.59 477A.06, subdivision 1; 485.018, subdivision 5;
2.60 487.02, subdivision 2; 487.32, subdivision 3; 487.33,
2.61 subdivision 5; and 574.34, subdivision 1; Laws 1997,
2.62 chapter 231, article 1, section 19, subdivisions 1 and
2.63 3; article 2, section 68, subdivision 3, as amended;
2.64 article 3, section 9; Laws 1997, First Special Session
2.65 chapter 3, section 27; Laws 1997, Second Special
2.66 Session chapter 2, section 6; Laws 1998, chapter 389,
2.67 article 8, section 44, subdivisions 5, 6, and 7, as
2.68 amended; Laws 1998, chapter 645, section 3; and Laws
2.69 1999, chapter 112, section 1, subdivisions 1, 3, 4,
2.70 and 9; proposing coding for new law in Minnesota
2.71 Statutes, chapters 16A; 116J; 275; 290; 383D; 414; and
3.1 469; repealing Minnesota Statutes 1998, sections
3.2 92.22; 116J.991; 273.11, subdivision 10; 280.27;
3.3 281.13; 281.38; 284.01; 284.02; 284.03; 284.04;
3.4 284.05; 284.06; 297E.12, subdivision 3; 297F.19,
3.5 subdivision 4; 297G.18, subdivision 4; 473.252,
3.6 subdivisions 4 and 5; and 477A.05; Laws 1997, chapter
3.7 231, article 1, section 19, subdivision 2; and Laws
3.8 1998, chapter 389, article 3, section 45.
3.9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
3.10 ARTICLE 1
3.11 SALES TAX REBATE
3.12 Section 1. [STATEMENT OF PURPOSE.]
3.13 (a) The state of Minnesota derives revenues from a variety
3.14 of taxes, fees, and other sources, including the state sales tax.
3.15 (b) It is fair and reasonable to refund the existing state
3.16 budget surplus in the form of a rebate of nonbusiness consumer
3.17 sales taxes paid by individuals in calendar year 1997.
3.18 (c) Information concerning the amount of sales tax paid at
3.19 various income levels is contained in the Minnesota tax
3.20 incidence report, which is written by the commissioner of
3.21 revenue and presented to the legislature according to Minnesota
3.22 Statutes, section 270.0682.
3.23 (d) It is fair and reasonable to use information contained
3.24 in the Minnesota tax incidence report to determine the
3.25 proportionate share of the sales tax rebate due each eligible
3.26 taxpayer since no effective or practical mechanism exists for
3.27 determining the amount of actual sales tax paid by each eligible
3.28 individual.
3.29 Sec. 2. [SALES TAX REBATE.]
3.30 (a) An individual who:
3.31 (1) was eligible for a credit under Laws 1997, chapter 231,
3.32 article 1, section 16, as amended by Laws 1997, First Special
3.33 Session chapter 5, section 35, and Laws 1997, Third Special
3.34 Session chapter 3, section 11, and Laws 1998, chapter 304, and
3.35 Laws 1998, chapter 389, article 1, section 3, and who filed for
3.36 or received that credit on or before June 15, 1999; or
3.37 (2) filed a 1997 Minnesota income tax return on or before
3.38 June 15, 1999, and had a tax liability before refundable credits
3.39 on that return of at least $1 but did not file the claim for
4.1 credit authorized under Laws 1997, chapter 231, article 1,
4.2 section 16, as amended, and who was not allowed to be claimed as
4.3 a dependent on a 1997 federal income tax return filed by another
4.4 person; or
4.5 (3) had the property taxes payable on his or her homestead
4.6 abated to zero under Laws 1997, chapter 231, article 2, section
4.7 64,
4.8 shall receive a sales tax rebate.
4.9 (b) The sales tax rebate for taxpayers who qualify under
4.10 paragraph (a) as married filing joint or head of household must
4.11 be computed according to the following schedule:
4.12 Income Sales Tax Rebate
4.13 less than $2,500 $ 358
4.14 at least $2,500 but less than $5,000 $ 469
4.15 at least $5,000 but less than $10,000 $ 502
4.16 at least $10,000 but less than $15,000 $ 549
4.17 at least $15,000 but less than $20,000 $ 604
4.18 at least $20,000 but less than $25,000 $ 641
4.19 at least $25,000 but less than $30,000 $ 690
4.20 at least $30,000 but less than $35,000 $ 762
4.21 at least $35,000 but less than $40,000 $ 820
4.22 at least $40,000 but less than $45,000 $ 874
4.23 at least $45,000 but less than $50,000 $ 921
4.24 at least $50,000 but less than $60,000 $ 969
4.25 at least $60,000 but less than $70,000 $1,071
4.26 at least $70,000 but less than $80,000 $1,162
4.27 at least $80,000 but less than $90,000 $1,276
4.28 at least $90,000 but less than $100,000 $1,417
4.29 at least $100,000 but less than $120,000 $1,535
4.30 at least $120,000 but less than $140,000 $1,682
4.31 at least $140,000 but less than $160,000 $1,818
4.32 at least $160,000 but less than $180,000 $1,946
4.33 at least $180,000 but less than $200,000 $2,067
4.34 at least $200,000 but less than $400,000 $2,644
4.35 at least $400,000 but less than $600,000 $3,479
4.36 at least $600,000 but less than $800,000 $4,175
5.1 at least $800,000 but less than $1,000,000 $4,785
5.2 $1,000,000 and over $5,000
5.3 (c) The sales tax rebate for individuals who qualify under
5.4 paragraph (a) as single or married filing separately must be
5.5 computed according to the following schedule:
5.6 Income Sales Tax Rebate
5.7 less than $2,500 $ 204
5.8 at least $2,500 but less than $5,000 $ 249
5.9 at least $5,000 but less than $10,000 $ 299
5.10 at least $10,000 but less than $15,000 $ 408
5.11 at least $15,000 but less than $20,000 $ 464
5.12 at least $20,000 but less than $25,000 $ 496
5.13 at least $25,000 but less than $30,000 $ 515
5.14 at least $30,000 but less than $40,000 $ 570
5.15 at least $40,000 but less than $50,000 $ 649
5.16 at least $50,000 but less than $70,000 $ 776
5.17 at least $70,000 but less than $100,000 $ 958
5.18 at least $100,000 but less than $140,000 $1,154
5.19 at least $140,000 but less than $200,000 $1,394
5.20 at least $200,000 but less than $400,000 $1,889
5.21 at least $400,000 but less than $600,000 $2,485
5.22 $600,000 and over $2,500
5.23 (d) Individuals who were not residents of Minnesota for any
5.24 part of 1997 and who paid more than $10 in Minnesota sales tax
5.25 on nonbusiness consumer purchases in that year qualify for a
5.26 rebate under this paragraph only. Qualifying nonresidents must
5.27 file a claim for rebate on a form prescribed by the commissioner
5.28 before the later of June 15, 1999, or 30 days after the date of
5.29 enactment of this act. The claim must include receipts showing
5.30 the Minnesota sales tax paid and the date of the sale. Taxes
5.31 paid on purchases allowed in the computation of federal taxable
5.32 income or reimbursed by an employer are not eligible for the
5.33 rebate. The commissioner shall determine the qualifying taxes
5.34 paid and rebate the lesser of:
5.35 (1) 69.0 percent of that amount; or
5.36 (2) the maximum amount for which the claimant would have
6.1 been eligible as determined under paragraph (b) if the taxpayer
6.2 filed the 1997 federal income tax return as a married taxpayer
6.3 filing jointly or head of household, or as determined under
6.4 paragraph (c) for other taxpayers.
6.5 (e) "Income," for purposes of this section other than
6.6 paragraph (d), is taxable income as defined in section 63 of the
6.7 Internal Revenue Code of 1986, as amended through December 31,
6.8 1996, plus the sum of any additions to federal taxable income
6.9 for the taxpayer under Minnesota Statutes, section 290.01,
6.10 subdivision 19a, and reported on the original 1997 income tax
6.11 return including subsequent adjustments to that return made
6.12 within the time limits specified in paragraph (h). For an
6.13 individual who was a resident of Minnesota for less than the
6.14 entire year, the sales tax rebate equals the sales tax rebate
6.15 calculated under paragraph (b) or (c) multiplied by the
6.16 percentage determined pursuant to Minnesota Statutes, section
6.17 290.06, subdivision 2c, paragraph (e), as calculated on the
6.18 original 1997 income tax return including subsequent adjustments
6.19 to that return made within the time limits specified in
6.20 paragraph (h). For purposes of paragraph (d), "income" is
6.21 taxable income as defined in section 63 of the Internal Revenue
6.22 Code of 1986, as amended through December 31, 1996, and reported
6.23 on the taxpayer's original federal tax return for the first
6.24 taxable year beginning after December 31, 1996.
6.25 (f) Before payment, the commissioner of revenue shall
6.26 adjust the rebate as follows:
6.27 (1) the rebates calculated in paragraphs (b), (c), and (d)
6.28 must be proportionately reduced to account for 1997 income tax
6.29 returns that are filed on or after January 1, 1999, but before
6.30 July 1, 1999, so that the amount of sales tax rebates payable
6.31 under paragraphs (b), (c), and (d) does not exceed
6.32 $1,250,000,000; and
6.33 (2) the commissioner of finance shall certify by July 15,
6.34 1999, preliminary fiscal year 1999 general fund net nondedicated
6.35 revenues. The certification shall exclude the impact of any
6.36 legislation enacted during the 1999 regular session. If
7.1 certified net nondedicated revenues exceed the amount forecast
7.2 in February 1999, up to $50,000,000 of the increase shall be
7.3 added to the total amount rebated. The commissioner of revenue
7.4 shall adjust all rebates proportionally to reflect any
7.5 increases. The total amount of the rebate shall not exceed
7.6 $1,300,000,000.
7.7 The adjustments under this paragraph are not rules subject to
7.8 Minnesota Statutes, chapter 14.
7.9 (g) The commissioner of revenue may begin making sales tax
7.10 rebates by August 1, 1999. Sales tax rebates not paid by
7.11 October 1, 1999, bear interest at the rate specified in
7.12 Minnesota Statutes, section 270.75.
7.13 (h) A sales tax rebate shall not be adjusted based on
7.14 changes to a 1997 income tax return that are made by order of
7.15 assessment after June 15, 1999, or made by the taxpayer that are
7.16 filed with the commissioner of revenue after June 15, 1999.
7.17 (i) Individuals who filed a joint income tax return for
7.18 1997 shall receive a joint sales tax rebate. After the sales
7.19 tax rebate has been issued, but before the check has been
7.20 cashed, either joint claimant may request a separate check for
7.21 one-half of the joint sales tax rebate. Notwithstanding
7.22 anything in this section to the contrary, if prior to payment,
7.23 the commissioner has been notified that persons who filed a
7.24 joint 1997 income tax return are living at separate addresses,
7.25 as indicated on their 1998 income tax return or otherwise, the
7.26 commissioner may issue separate checks to each person. The
7.27 amount payable to each person is one-half of the total joint
7.28 rebate.
7.29 (j) The sales tax rebate is a "Minnesota tax law" for
7.30 purposes of Minnesota Statutes, section 270B.01, subdivision 8.
7.31 (k) The sales tax rebate is "an overpayment of any tax
7.32 collected by the commissioner" for purposes of Minnesota
7.33 Statutes, section 270.07, subdivision 5. For purposes of this
7.34 paragraph, a joint sales tax rebate is payable to each spouse
7.35 equally.
7.36 (l) If the commissioner of revenue cannot locate an
8.1 individual entitled to a sales tax rebate by July 1, 2001, or if
8.2 an individual to whom a sales tax rebate was issued has not
8.3 cashed the check by July 1, 2001, the right to the sales tax
8.4 rebate lapses and the check must be deposited in the general
8.5 fund.
8.6 (m) Individuals entitled to a sales tax rebate pursuant to
8.7 paragraph (a), but who did not receive one, and individuals who
8.8 receive a sales tax rebate that was not correctly computed, must
8.9 file a claim with the commissioner before July 1, 2000, in a
8.10 form prescribed by the commissioner. These claims must be
8.11 treated as if they are a claim for refund under Minnesota
8.12 Statutes, section 289A.50, subdivisions 4 and 7.
8.13 (n) The sales tax rebate is a refund subject to revenue
8.14 recapture under Minnesota Statutes, chapter 270A. The
8.15 commissioner of revenue shall remit the entire refund to the
8.16 claimant agency, which shall, upon the request of the spouse who
8.17 does not owe the debt, refund one-half of the joint sales tax
8.18 rebate to the spouse who does not owe the debt.
8.19 (o) The rebate is a reduction of fiscal year 1999 sales tax
8.20 revenues. The amount necessary to make the sales tax rebates
8.21 and interest provided in this section is appropriated from the
8.22 general fund to the commissioner of revenue in fiscal year 1999
8.23 and is available until June 30, 2001.
8.24 (p) If a sales tax rebate check is cashed by someone other
8.25 than the payee or payees of the check, and the commissioner of
8.26 revenue determines that the check has been forged or improperly
8.27 endorsed, the commissioner may issue an order of assessment for
8.28 the amount of the check against the person or persons cashing
8.29 it. The assessment must be made within two years after the
8.30 check is cashed, but if cashing the check constitutes theft
8.31 under Minnesota Statutes, section 609.52, or forgery under
8.32 Minnesota Statutes, section 609.631, the assessment can be made
8.33 at any time. The assessment may be appealed administratively
8.34 and judicially. The commissioner may take action to collect the
8.35 assessment in the same manner as provided by Minnesota Statutes,
8.36 chapter 289A, for any other order of the commissioner assessing
9.1 tax.
9.2 (q) Notwithstanding Minnesota Statutes, sections 9.031,
9.3 16A.40, 16B.49, 16B.50, and any other law to the contrary, the
9.4 commissioner of revenue may take whatever actions the
9.5 commissioner deems necessary to pay the rebates required by this
9.6 section, and may, in consultation with the commissioner of
9.7 finance and the state treasurer, contract with a private vendor
9.8 or vendors to process, print, and mail the rebate checks or
9.9 warrants required under this section and receive and disburse
9.10 state funds to pay those checks or warrants.
9.11 (r) The commissioner may pay rebates required by this
9.12 section by electronic funds transfer to individuals who
9.13 requested that their 1998 individual income tax refund be paid
9.14 through electronic funds transfer. The commissioner may make
9.15 the electronic funds transfer payments to the same financial
9.16 institution and into the same account as the 1998 individual
9.17 income tax refund.
9.18 Sec. 3. [APPROPRIATIONS.]
9.19 $1,257,000 is appropriated from the general fund to the
9.20 commissioner of revenue to administer the sales tax rebate for
9.21 fiscal year 1999. Any unencumbered balance remaining on June
9.22 30, 1999, does not cancel but is available for expenditure by
9.23 the commissioner of revenue until June 30, 2001. This is a
9.24 one-time appropriation and may not be added to the agency's
9.25 budget base.
9.26 Sec. 4. [EFFECTIVE DATE.]
9.27 Sections 1 to 3 are effective the day following final
9.28 enactment.
9.29 ARTICLE 2
9.30 INCOME AND FRANCHISE TAXES
9.31 Section 1. Minnesota Statutes 1998, section 16D.09, is
9.32 amended to read:
9.33 16D.09 [UNCOLLECTIBLE DEBTS.]
9.34 Subdivision 1. [GENERALLY.] When a debt is determined by a
9.35 state agency to be uncollectible, the debt may be written off by
9.36 the state agency from the state agency's financial accounting
10.1 records and no longer recognized as an account receivable for
10.2 financial reporting purposes. A debt is considered to be
10.3 uncollectible when (1) all reasonable collection efforts have
10.4 been exhausted, (2) the cost of further collection action will
10.5 exceed the amount recoverable, (3) the debt is legally without
10.6 merit or cannot be substantiated by evidence, (4) the debtor
10.7 cannot be located, (5) the available assets or income, current
10.8 or anticipated, that may be available for payment of the debt
10.9 are insufficient, (6) the debt has been discharged in
10.10 bankruptcy, (7) the applicable statute of limitations for
10.11 collection of the debt has expired, or (8) it is not in the
10.12 public interest to pursue collection of the debt. The
10.13 determination of the uncollectibility of a debt must be reported
10.14 by the state agency along with the basis for that decision as
10.15 part of its quarterly reports to the commissioner of finance.
10.16 Determining that the debt is uncollectible does not cancel the
10.17 legal obligation of the debtor to pay the debt, except in the
10.18 case of a debt related to a tax liability that is canceled by
10.19 the department of revenue.
10.20 Subd. 2. [NOTIFICATION OF ACTION BY DEPARTMENT OF
10.21 REVENUE.] When the department of revenue has determined that a
10.22 debt is uncollectible and has written off that debt as provided
10.23 in subdivision 1, the commissioner of revenue must make a
10.24 reasonable attempt to notify the debtor of that action and of
10.25 the release of any liens imposed under section 270.69 related to
10.26 that debt, within 30 days after the determination has been
10.27 reported to the commissioner of finance.
10.28 Sec. 2. Minnesota Statutes 1998, section 290.01,
10.29 subdivision 7, is amended to read:
10.30 Subd. 7. [RESIDENT.] The term "resident" means (1) any
10.31 individual domiciled in Minnesota, except that an individual is
10.32 not a "resident" for the period of time that the individual is a
10.33 "qualified individual" as defined in section 911(d)(1) of the
10.34 Internal Revenue Code, if the qualified individual notifies the
10.35 county within three months of moving out of the country that
10.36 homestead status be revoked for the Minnesota residence of the
11.1 qualified individual, and the property is not classified as a
11.2 homestead while the individual remains a qualified individual;
11.3 and (2) any individual domiciled outside the state who maintains
11.4 a place of abode in the state and spends in the aggregate more
11.5 than one-half of the tax year in Minnesota, unless the
11.6 individual or the spouse of the individual is in the armed
11.7 forces of the United States, or the individual is covered under
11.8 the reciprocity provisions in section 290.081.
11.9 For purposes of this subdivision, presence within the state
11.10 for any part of a calendar day constitutes a day spent in the
11.11 state. Individuals shall keep adequate records to substantiate
11.12 the days spent outside the state.
11.13 The term "abode" means a dwelling maintained by an
11.14 individual, whether or not owned by the individual and whether
11.15 or not occupied by the individual, and includes a dwelling place
11.16 owned or leased by the individual's spouse.
11.17 Neither the commissioner nor any court shall consider
11.18 charitable contributions made by an individual within or without
11.19 the state in determining if the individual is domiciled in
11.20 Minnesota.
11.21 Sec. 3. Minnesota Statutes 1998, section 290.01,
11.22 subdivision 19a, is amended to read:
11.23 Subd. 19a. [ADDITIONS TO FEDERAL TAXABLE INCOME.] For
11.24 individuals, estates, and trusts, there shall be added to
11.25 federal taxable income:
11.26 (1)(i) interest income on obligations of any state other
11.27 than Minnesota or a political or governmental subdivision,
11.28 municipality, or governmental agency or instrumentality of any
11.29 state other than Minnesota exempt from federal income taxes
11.30 under the Internal Revenue Code or any other federal statute,
11.31 and
11.32 (ii) exempt-interest dividends as defined in section
11.33 852(b)(5) of the Internal Revenue Code, except the portion of
11.34 the exempt-interest dividends derived from interest income on
11.35 obligations of the state of Minnesota or its political or
11.36 governmental subdivisions, municipalities, governmental agencies
12.1 or instrumentalities, but only if the portion of the
12.2 exempt-interest dividends from such Minnesota sources paid to
12.3 all shareholders represents 95 percent or more of the
12.4 exempt-interest dividends that are paid by the regulated
12.5 investment company as defined in section 851(a) of the Internal
12.6 Revenue Code, or the fund of the regulated investment company as
12.7 defined in section 851(g) of the Internal Revenue Code, making
12.8 the payment; and
12.9 (iii) for the purposes of items (i) and (ii), interest on
12.10 obligations of an Indian tribal government described in section
12.11 7871(c) of the Internal Revenue Code shall be treated as
12.12 interest income on obligations of the state in which the tribe
12.13 is located;
12.14 (2) the amount of income taxes paid or accrued within the
12.15 taxable year under this chapter and income taxes paid to any
12.16 other state or to any province or territory of Canada, to the
12.17 extent allowed as a deduction under section 63(d) of the
12.18 Internal Revenue Code, but the addition may not be more than the
12.19 amount by which the itemized deductions as allowed under section
12.20 63(d) of the Internal Revenue Code exceeds the amount of the
12.21 standard deduction as defined in section 63(c) of the Internal
12.22 Revenue Code. For the purpose of this paragraph, the
12.23 disallowance of itemized deductions under section 68 of the
12.24 Internal Revenue Code of 1986, income tax is the last itemized
12.25 deduction disallowed;
12.26 (3) the capital gain amount of a lump sum distribution to
12.27 which the special tax under section 1122(h)(3)(B)(ii) of the Tax
12.28 Reform Act of 1986, Public Law Number 99-514, applies;
12.29 (4) the amount of income taxes paid or accrued within the
12.30 taxable year under this chapter and income taxes paid to any
12.31 other state or any province or territory of Canada, to the
12.32 extent allowed as a deduction in determining federal adjusted
12.33 gross income. For the purpose of this paragraph, income taxes
12.34 do not include the taxes imposed by sections 290.0922,
12.35 subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729;
12.36 (5) the amount of loss or expense included in federal
13.1 taxable income under section 1366 of the Internal Revenue Code
13.2 flowing from a corporation that has a valid election in effect
13.3 for the taxable year under section 1362 of the Internal Revenue
13.4 Code, but which is not allowed to be an "S" corporation under
13.5 section 290.9725;
13.6 (6) the amount of any distributions in cash or property
13.7 made to a shareholder during the taxable year by a corporation
13.8 that has a valid election in effect for the taxable year under
13.9 section 1362 of the Internal Revenue Code, but which is not
13.10 allowed to be an "S" corporation under section 290.9725 to the
13.11 extent not already included in federal taxable income under
13.12 section 1368 of the Internal Revenue Code;
13.13 (7) in the year stock of a corporation that had made a
13.14 valid election under section 1362 of the Internal Revenue Code
13.15 but was not an "S" corporation under section 290.9725 is sold or
13.16 disposed of in a transaction taxable under the Internal Revenue
13.17 Code, the amount of difference between the Minnesota basis of
13.18 the stock under subdivision 19f, paragraph (m), and the federal
13.19 basis if the Minnesota basis is lower than the shareholder's
13.20 federal basis;
13.21 (8) (5) the amount of expense, interest, or taxes
13.22 disallowed pursuant to section 290.10; and
13.23 (9) (6) the amount of a partner's pro rata share of net
13.24 income which does not flow through to the partner because the
13.25 partnership elected to pay the tax on the income under section
13.26 6242(a)(2) of the Internal Revenue Code.
13.27 Sec. 4. Minnesota Statutes 1998, section 290.01,
13.28 subdivision 19b, is amended to read:
13.29 Subd. 19b. [SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.] For
13.30 individuals, estates, and trusts, there shall be subtracted from
13.31 federal taxable income:
13.32 (1) interest income on obligations of any authority,
13.33 commission, or instrumentality of the United States to the
13.34 extent includable in taxable income for federal income tax
13.35 purposes but exempt from state income tax under the laws of the
13.36 United States;
14.1 (2) if included in federal taxable income, the amount of
14.2 any overpayment of income tax to Minnesota or to any other
14.3 state, for any previous taxable year, whether the amount is
14.4 received as a refund or as a credit to another taxable year's
14.5 income tax liability;
14.6 (3) the amount paid to others, less the credit allowed
14.7 under section 290.0674, not to exceed $1,625 for each dependent
14.8 qualifying child in grades kindergarten to 6 and $2,500 for each
14.9 dependent qualifying child in grades 7 to 12, for tuition,
14.10 textbooks, and transportation of each dependent qualifying child
14.11 in attending an elementary or secondary school situated in
14.12 Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin,
14.13 wherein a resident of this state may legally fulfill the state's
14.14 compulsory attendance laws, which is not operated for profit,
14.15 and which adheres to the provisions of the Civil Rights Act of
14.16 1964 and chapter 363. For the purposes of this clause,
14.17 "tuition" includes fees or tuition as defined in section
14.18 290.0674, subdivision 1, clause (1). As used in this clause,
14.19 "textbooks" includes books and other instructional materials and
14.20 equipment used in elementary and secondary schools in teaching
14.21 only those subjects legally and commonly taught in public
14.22 elementary and secondary schools in this state. Equipment
14.23 expenses qualifying for deduction includes expenses as defined
14.24 and limited in section 290.0674, subdivision 1, clause (3).
14.25 "Textbooks" does not include instructional books and materials
14.26 used in the teaching of religious tenets, doctrines, or worship,
14.27 the purpose of which is to instill such tenets, doctrines, or
14.28 worship, nor does it include books or materials for, or
14.29 transportation to, extracurricular activities including sporting
14.30 events, musical or dramatic events, speech activities, driver's
14.31 education, or similar programs. For purposes of the subtraction
14.32 provided by this clause, "qualifying child" has the meaning
14.33 given in section 32(c)(3) of the Internal Revenue Code;
14.34 (4) contributions made in taxable years beginning after
14.35 December 31, 1981, and before January 1, 1985, to the extent
14.36 included in federal taxable income, distributions from a
15.1 qualified governmental pension plan, an individual retirement
15.2 account, simplified employee pension, or qualified plan covering
15.3 a self-employed person that represent a return of contributions
15.4 that were included in Minnesota gross income in the taxable year
15.5 for which the contributions were made but were deducted or were
15.6 not included in the computation of federal adjusted gross
15.7 income. The distribution shall be allocated first to return of
15.8 contributions until the contributions included in Minnesota
15.9 gross income have been exhausted, less any amount allowed to be
15.10 subtracted as a distribution under this subdivision or a
15.11 predecessor provision in taxable years that began before January
15.12 1, 2000. This subtraction applies only to contributions made in
15.13 a taxable year prior to 1985 for taxable years beginning after
15.14 December 31, 1999, and before January 1, 2001;
15.15 (5) income as provided under section 290.0802;
15.16 (6) the amount of unrecovered accelerated cost recovery
15.17 system deductions allowed under subdivision 19g;
15.18 (7) to the extent included in federal adjusted gross
15.19 income, income realized on disposition of property exempt from
15.20 tax under section 290.491;
15.21 (8) to the extent not deducted in determining federal
15.22 taxable income, the amount paid for health insurance of
15.23 self-employed individuals as determined under section 162(l) of
15.24 the Internal Revenue Code, except that the 25 percent limit does
15.25 not apply. If the taxpayer deducted insurance payments under
15.26 section 213 of the Internal Revenue Code of 1986, the
15.27 subtraction under this clause must be reduced by the lesser of:
15.28 (i) the total itemized deductions allowed under section
15.29 63(d) of the Internal Revenue Code, less state, local, and
15.30 foreign income taxes deductible under section 164 of the
15.31 Internal Revenue Code and the standard deduction under section
15.32 63(c) of the Internal Revenue Code; or
15.33 (ii) the lesser of (A) the amount of insurance qualifying
15.34 as "medical care" under section 213(d) of the Internal Revenue
15.35 Code to the extent not deducted under section 162(1) of the
15.36 Internal Revenue Code or excluded from income or (B) the total
16.1 amount deductible for medical care under section 213(a);
16.2 (9) the exemption amount allowed under Laws 1995, chapter
16.3 255, article 3, section 2, subdivision 3;
16.4 (10) to the extent included in federal taxable income,
16.5 postservice benefits for youth community service under section
16.6 124D.42 for volunteer service under United States Code, title
16.7 42, section 5011(d), as amended;
16.8 (11) to the extent not subtracted under clause (1), the
16.9 amount of income or gain included in federal taxable income
16.10 under section 1366 of the Internal Revenue Code flowing from a
16.11 corporation that has a valid election in effect for the taxable
16.12 year under section 1362 of the Internal Revenue Code which is
16.13 not allowed to be an "S" corporation under section 290.9725;
16.14 (12) in the year stock of a corporation that had made a
16.15 valid election under section 1362 of the Internal Revenue Code
16.16 but was not an "S" corporation under section 290.9725 is sold or
16.17 disposed of in a transaction taxable under the Internal Revenue
16.18 Code, the amount of difference between the Minnesota basis of
16.19 the stock under subdivision 19f, paragraph (m), and the federal
16.20 basis if the Minnesota basis is higher than the shareholder's
16.21 federal basis; and
16.22 (13) an amount equal to an individual's, trust's, or
16.23 estate's net federal income tax liability for the tax year that
16.24 is attributable to items of income, expense, gain, loss, or
16.25 credits federally flowing to the taxpayer in the tax year from a
16.26 corporation, having a valid election in effect for federal tax
16.27 purposes under section 1362 of the Internal Revenue Code but not
16.28 treated as an "S" corporation for state tax purposes under
16.29 section 290.9725.
16.30 (11) to the extent not deducted in determining federal
16.31 taxable income by an individual who does not itemize deductions
16.32 for federal income tax purposes for the taxable year, an amount
16.33 equal to 50 percent of the excess of charitable contributions
16.34 allowable as a deduction for the taxable year under section
16.35 170(a) of the Internal Revenue Code over $500; and
16.36 (12) to the extent included in federal taxable income,
17.1 holocaust victims' settlement payments for any injury incurred
17.2 as a result of the holocaust, if received by an individual who
17.3 was persecuted for racial or religious reasons by Nazi Germany
17.4 or any other Axis regime or an heir of such a person.
17.5 Sec. 5. Minnesota Statutes 1998, section 290.01,
17.6 subdivision 19f, is amended to read:
17.7 Subd. 19f. [BASIS MODIFICATIONS AFFECTING GAIN OR LOSS ON
17.8 DISPOSITION OF PROPERTY.] (a) For individuals, estates, and
17.9 trusts, the basis of property is its adjusted basis for federal
17.10 income tax purposes except as set forth in paragraphs (f), (g),
17.11 and (m). For corporations, the basis of property is its
17.12 adjusted basis for federal income tax purposes, without regard
17.13 to the time when the property became subject to tax under this
17.14 chapter or to whether out-of-state losses or items of tax
17.15 preference with respect to the property were not deductible
17.16 under this chapter, except that the modifications to the basis
17.17 for federal income tax purposes set forth in paragraphs (b) to
17.18 (j) are allowed to corporations, and the resulting modifications
17.19 to federal taxable income must be made in the year in which gain
17.20 or loss on the sale or other disposition of property is
17.21 recognized.
17.22 (b) The basis of property shall not be reduced to reflect
17.23 federal investment tax credit.
17.24 (c) The basis of property subject to the accelerated cost
17.25 recovery system under section 168 of the Internal Revenue Code
17.26 shall be modified to reflect the modifications in depreciation
17.27 with respect to the property provided for in subdivision 19e.
17.28 For certified pollution control facilities for which
17.29 amortization deductions were elected under section 169 of the
17.30 Internal Revenue Code of 1954, the basis of the property must be
17.31 increased by the amount of the amortization deduction not
17.32 previously allowed under this chapter.
17.33 (d) For property acquired before January 1, 1933, the basis
17.34 for computing a gain is the fair market value of the property as
17.35 of that date. The basis for determining a loss is the cost of
17.36 the property to the taxpayer less any depreciation,
18.1 amortization, or depletion, actually sustained before that
18.2 date. If the adjusted cost exceeds the fair market value of the
18.3 property, then the basis is the adjusted cost regardless of
18.4 whether there is a gain or loss.
18.5 (e) The basis is reduced by the allowance for amortization
18.6 of bond premium if an election to amortize was made pursuant to
18.7 Minnesota Statutes 1986, section 290.09, subdivision 13, and the
18.8 allowance could have been deducted by the taxpayer under this
18.9 chapter during the period of the taxpayer's ownership of the
18.10 property.
18.11 (f) For assets placed in service before January 1, 1987,
18.12 corporations, partnerships, or individuals engaged in the
18.13 business of mining ores other than iron ore or taconite
18.14 concentrates subject to the occupation tax under chapter 298
18.15 must use the occupation tax basis of property used in that
18.16 business.
18.17 (g) For assets placed in service before January 1, 1990,
18.18 corporations, partnerships, or individuals engaged in the
18.19 business of mining iron ore or taconite concentrates subject to
18.20 the occupation tax under chapter 298 must use the occupation tax
18.21 basis of property used in that business.
18.22 (h) In applying the provisions of sections 301(c)(3)(B),
18.23 312(f) and (g), and 316(a)(1) of the Internal Revenue Code, the
18.24 dates December 31, 1932, and January 1, 1933, shall be
18.25 substituted for February 28, 1913, and March 1, 1913,
18.26 respectively.
18.27 (i) In applying the provisions of section 362(a) and (c) of
18.28 the Internal Revenue Code, the date December 31, 1956, shall be
18.29 substituted for June 22, 1954.
18.30 (j) The basis of property shall be increased by the amount
18.31 of intangible drilling costs not previously allowed due to
18.32 differences between this chapter and the Internal Revenue Code.
18.33 (k) The adjusted basis of any corporate partner's interest
18.34 in a partnership is the same as the adjusted basis for federal
18.35 income tax purposes modified as required to reflect the basis
18.36 modifications set forth in paragraphs (b) to (j). The adjusted
19.1 basis of a partnership in which the partner is an individual,
19.2 estate, or trust is the same as the adjusted basis for federal
19.3 income tax purposes modified as required to reflect the basis
19.4 modifications set forth in paragraphs (f) and (g).
19.5 (l) The modifications contained in paragraphs (b) to (j)
19.6 also apply to the basis of property that is determined by
19.7 reference to the basis of the same property in the hands of a
19.8 different taxpayer or by reference to the basis of different
19.9 property.
19.10 (m) If a corporation has a valid election in effect for the
19.11 taxable year under section 1362 of the Internal Revenue Code,
19.12 but is not allowed to be an "S" corporation under section
19.13 290.9725, and the corporation is liquidated or the individual
19.14 shareholder disposes of the stock, the Minnesota basis in the
19.15 shareholder's stock in the corporation shall be computed as if
19.16 the corporation were not an "S" corporation for federal tax
19.17 purposes.
19.18 Sec. 6. Minnesota Statutes 1998, section 290.01,
19.19 subdivision 19g, is amended to read:
19.20 Subd. 19g. [ACRS MODIFICATION FOR INDIVIDUALS.] (a) An
19.21 individual is allowed a subtraction from federal taxable income
19.22 for the amount of accelerated cost recovery system deductions
19.23 that were added to federal adjusted gross income in computing
19.24 Minnesota gross income for taxable year 1981, 1982, 1983, or
19.25 1984 and that were not deducted in a later taxable year
19.26 beginning before January 1, 2000. The deduction is
19.27 allowed beginning in the first taxable year after the entire
19.28 allowable deduction for the property has been allowed under
19.29 federal law or the first taxable year beginning after December
19.30 31, 1987, whichever is later 1999. The amount of the
19.31 deduction is computed by deducting equals the amount added to
19.32 federal adjusted gross income in computing Minnesota gross
19.33 income, (less any:
19.34 (1) deduction allowed allowable under Minnesota Statutes
19.35 1986, section 290.01, subdivision 20f) in equal annual amounts
19.36 over five years.; and
20.1 (2) amount allowable as a subtraction under this
20.2 subdivision in a taxable year beginning before January 1, 2000.
20.3 This paragraph does not apply to property that was sold or
20.4 exchanged in a taxable year beginning before January 1, 2001.
20.5 (b) In the event of a sale or exchange of the
20.6 property occurring during a taxable year beginning after
20.7 December 31, 1999, and before January 1, 2001, a deduction is
20.8 allowed equal to the lesser of (1) the remaining amount that
20.9 would be allowed as a deduction under paragraph (a) or (2) the
20.10 amount of capital gain recognized and the amount of cost
20.11 recovery deductions that were subject to recapture under
20.12 sections 1245 and 1250 of the Internal Revenue Code of 1986 for
20.13 the taxable year.
20.14 (c) In the case of a corporation treated as an "S"
20.15 corporation under section 290.9725, the amount of the
20.16 corporation's cost recovery allowances that have been deducted
20.17 in computing federal tax, but have been added to federal taxable
20.18 income or not deducted in computing tax under this chapter as a
20.19 result of the application of subdivision 19e, paragraphs (a) and
20.20 (c) or Minnesota Statutes 1986, section 290.09, subdivision 7,
20.21 is allowed as a deduction to the shareholders under the
20.22 provisions of paragraph (a).
20.23 Sec. 7. Minnesota Statutes 1998, section 290.01, is
20.24 amended by adding a subdivision to read:
20.25 Subd. 32. [HOLOCAUST SETTLEMENT PAYMENTS.] "Holocaust
20.26 victims' settlement payments" means:
20.27 (1) a payment received as a result of settlement of the
20.28 action entitled In re Holocaust Victims' Asset Litigation, in
20.29 United States district court for the eastern district of New
20.30 York, C.A. No. 96-4849;
20.31 (2) any amount received under the German Act Regulating
20.32 Unresolved Property Claims or any other foreign law providing
20.33 for payments for holocaust claims; and
20.34 (3) a payment received as a result of the settlement of a
20.35 holocaust claim not described in clause (1) or (2), including an
20.36 insurance claim, a claim relating to looted art or financial
21.1 assets, and a claim relating to slave labor wages.
21.2 Sec. 8. Minnesota Statutes 1998, section 290.06,
21.3 subdivision 2c, is amended to read:
21.4 Subd. 2c. [SCHEDULES OF RATES FOR INDIVIDUALS, ESTATES,
21.5 AND TRUSTS.] (a) The income taxes imposed by this chapter upon
21.6 married individuals filing joint returns and surviving spouses
21.7 as defined in section 2(a) of the Internal Revenue Code must be
21.8 computed by applying to their taxable net income the following
21.9 schedule of rates:
21.10 (1) On the first $19,910 $25,220, 6 5.5 percent;
21.11 (2) On all over $19,910 $25,220, but not
21.12 over $79,120 $100,200, 8 7.25 percent;
21.13 (3) On all over $79,120 $100,200, 8.5 8 percent.
21.14 Married individuals filing separate returns, estates, and
21.15 trusts must compute their income tax by applying the above rates
21.16 to their taxable income, except that the income brackets will be
21.17 one-half of the above amounts.
21.18 (b) The income taxes imposed by this chapter upon unmarried
21.19 individuals must be computed by applying to taxable net income
21.20 the following schedule of rates:
21.21 (1) On the first $13,620 $17,250, 6 5.5 percent;
21.22 (2) On all over $13,620 $17,250, but not
21.23 over $44,750 $56,680, 8 7.25 percent;
21.24 (3) On all over $44,750 $56,680, 8.5 8 percent.
21.25 (c) The income taxes imposed by this chapter upon unmarried
21.26 individuals qualifying as a head of household as defined in
21.27 section 2(b) of the Internal Revenue Code must be computed by
21.28 applying to taxable net income the following schedule of rates:
21.29 (1) On the first $16,770 $21,240, 6 5.5 percent;
21.30 (2) On all over $16,770 $21,240, but not
21.31 over $67,390 $85,350, 8 7.25 percent;
21.32 (3) On all over $67,390 $85,350, 8.5 8 percent.
21.33 (d) In lieu of a tax computed according to the rates set
21.34 forth in this subdivision, the tax of any individual taxpayer
21.35 whose taxable net income for the taxable year is less than an
21.36 amount determined by the commissioner must be computed in
22.1 accordance with tables prepared and issued by the commissioner
22.2 of revenue based on income brackets of not more than $100. The
22.3 amount of tax for each bracket shall be computed at the rates
22.4 set forth in this subdivision, provided that the commissioner
22.5 may disregard a fractional part of a dollar unless it amounts to
22.6 50 cents or more, in which case it may be increased to $1.
22.7 (e) An individual who is not a Minnesota resident for the
22.8 entire year must compute the individual's Minnesota income tax
22.9 as provided in this subdivision. After the application of the
22.10 nonrefundable credits provided in this chapter, the tax
22.11 liability must then be multiplied by a fraction in which:
22.12 (1) the numerator is the individual's Minnesota source
22.13 federal adjusted gross income as defined in section 62 of the
22.14 Internal Revenue Code disregarding income or loss flowing from a
22.15 corporation having a valid election for the taxable year under
22.16 section 1362 of the Internal Revenue Code but which is not an
22.17 "S" corporation under section 290.9725 and increased by the
22.18 additions required under section 290.01, subdivision 19a,
22.19 clauses (1) and (9) (6), after applying the allocation and
22.20 assignability provisions of section 290.081, clause (a), or
22.21 290.17; and
22.22 (2) the denominator is the individual's federal adjusted
22.23 gross income as defined in section 62 of the Internal Revenue
22.24 Code of 1986, increased by the amounts specified in section
22.25 290.01, subdivision 19a, clauses (1), (5), (6), (7), and
22.26 (9) (6), and reduced by the amounts specified in section 290.01,
22.27 subdivision 19b, clauses clause (1), (11), and (12).
22.28 Sec. 9. Minnesota Statutes 1998, section 290.06,
22.29 subdivision 2d, is amended to read:
22.30 Subd. 2d. [INFLATION ADJUSTMENT OF BRACKETS.] (a) For
22.31 taxable years beginning after December 31, 1991 1999, the
22.32 minimum and maximum dollar amounts for each rate bracket for
22.33 which a tax is imposed in subdivision 2c shall be adjusted for
22.34 inflation by the percentage determined under paragraph (b). For
22.35 the purpose of making the adjustment as provided in this
22.36 subdivision all of the rate brackets provided in subdivision 2c
23.1 shall be the rate brackets as they existed for taxable years
23.2 beginning after December 31, 1990 1998, and before January
23.3 1, 1992 2000. The rate applicable to any rate bracket must not
23.4 be changed. The dollar amounts setting forth the tax shall be
23.5 adjusted to reflect the changes in the rate brackets. The rate
23.6 brackets as adjusted must be rounded to the nearest $10 amount.
23.7 If the rate bracket ends in $5, it must be rounded up to the
23.8 nearest $10 amount.
23.9 (b) The commissioner shall adjust the rate brackets and by
23.10 the percentage determined pursuant to the provisions of section
23.11 1(f) of the Internal Revenue Code, except that in section
23.12 1(f)(3)(B) the word "1990 1998" shall be substituted for the
23.13 word "1987 1992." For 1991 2000, the commissioner shall then
23.14 determine the percent change from the 12 months ending on August
23.15 31, 1990 1998, to the 12 months ending on August 31, 1991 1999,
23.16 and in each subsequent year, from the 12 months ending on August
23.17 31, 1990 1998, to the 12 months ending on August 31 of the year
23.18 preceding the taxable year. The determination of the
23.19 commissioner pursuant to this subdivision shall not be
23.20 considered a "rule" and shall not be subject to the
23.21 Administrative Procedure Act contained in chapter 14.
23.22 No later than December 15 of each year, the commissioner
23.23 shall announce the specific percentage that will be used to
23.24 adjust the tax rate brackets.
23.25 Sec. 10. Minnesota Statutes 1998, section 290.06, is
23.26 amended by adding a subdivision to read:
23.27 Subd. 26. [BANK S CORPORATIONS.] A shareholder of an S
23.28 corporation subject to tax under section 290.9725, clause (2),
23.29 is allowed a credit against the tax imposed under this chapter.
23.30 The credit equals 80 percent of the tax apportioned to the
23.31 shareholder under section 290.9726, subdivision 7, for the
23.32 taxable year.
23.33 Sec. 11. Minnesota Statutes 1998, section 290.06, is
23.34 amended by adding a subdivision to read:
23.35 Subd. 27. [TAX PAID TO ANOTHER STATE; CORPORATIONS.] (a) A
23.36 credit is allowed against the tax imposed under subdivision 1
24.1 for tax paid to another state based on net income. The credit
24.2 must be claimed in a manner prescribed by the commissioner.
24.3 (b) The amount of the credit equals the amount of
24.4 qualifying tax paid to the other state for the taxable year,
24.5 multiplied by the taxpayer's apportionment percentage under
24.6 section 290.191. If the item of income or gain is assigned to
24.7 Minnesota as nonbusiness income, the entire amount of the
24.8 qualifying tax is allowed as a credit. The maximum amount of
24.9 the credit is limited to the tax liability under subdivision 1
24.10 for the taxable year and, in no case, may the credit exceed the
24.11 reduction in the amount of tax under subdivision 1 if the item
24.12 of income or gain were excluded from net income.
24.13 (c) For purposes of this subdivision, "qualifying tax"
24.14 means the amount of tax paid to another state on an item of
24.15 income or gain for the taxable year, if:
24.16 (1) the law of another state requires and the taxpayer
24.17 assigns the entire amount of the income or gain to one other
24.18 state; and
24.19 (2) the income or gain is included in the measure of the
24.20 exercise of the corporate franchise that is taxable under
24.21 subdivision 1.
24.22 (d) The amount of tax paid to another state on an item of
24.23 income or gain is the difference between the tax paid to the
24.24 state and the amount of tax that would have been paid to the
24.25 state if the item of income or gain had not been included in the
24.26 net income of that state.
24.27 (e) The taxpayer must report to the commissioner of revenue
24.28 any change in tax in the other state, the change in qualifying
24.29 tax, and a copy of the final determination of the tax by the
24.30 taxing authority of the other state. A taxpayer who claims the
24.31 credit consents to extend the period of limitation for the
24.32 commissioner to recompute the credit and reassess the tax due,
24.33 including a refund, for a period of one year following a report
24.34 by the taxpayer of a final determination of tax by the state in
24.35 which the entire amount of income or gain is reported,
24.36 notwithstanding any period of limitations to the contrary, or
25.1 within any applicable period of limitations, whichever is
25.2 longer. If a taxpayer fails to report as required by this
25.3 paragraph, the commissioner may recompute the tax, including a
25.4 refund, based on the information available to the commissioner.
25.5 The tax may be recomputed within six years after the report
25.6 should have been filed, notwithstanding any period of
25.7 limitations to the contrary.
25.8 Sec. 12. Minnesota Statutes 1998, section 290.0671,
25.9 subdivision 1, is amended to read:
25.10 Subdivision 1. [CREDIT ALLOWED.] (a) An individual is
25.11 allowed a credit against the tax imposed by this chapter equal
25.12 to a percentage of earned income. To receive a credit, a
25.13 taxpayer must be eligible for a credit under section 32 of the
25.14 Internal Revenue Code.
25.15 (b) For individuals with no qualifying children, the credit
25.16 equals 1.1475 percent of the first $4,460 of earned income. The
25.17 credit is reduced by 1.1475 percent of earned income or modified
25.18 adjusted gross income, whichever is greater, in excess of
25.19 $5,570, but in no case is the credit less than zero.
25.20 (c) For individuals with one qualifying child, the credit
25.21 equals 6.8 7.45 percent of the first $6,680 of earned income and
25.22 8.5 percent of earned income over $11,650 but less than $12,990.
25.23 The credit is reduced by 4.77 5.13 percent of earned income or
25.24 modified adjusted gross income, whichever is greater, in excess
25.25 of $14,560, but in no case is the credit less than zero.
25.26 (d) For individuals with two or more qualifying children,
25.27 the credit equals eight 8.8 percent of the first $9,390 of
25.28 earned income and 20 percent of earned income over $14,350 but
25.29 less than $16,230. The credit is reduced by 8.8 9.38 percent of
25.30 earned income or modified adjusted gross income, whichever is
25.31 greater, in excess of $17,280, but in no case is the credit less
25.32 than zero.
25.33 (e) For a nonresident or part-year resident, the credit
25.34 must be allocated based on the percentage calculated under
25.35 section 290.06, subdivision 2c, paragraph (e).
25.36 (f) For a person who was a resident for the entire tax year
26.1 and has earned income not subject to tax under this chapter, the
26.2 credit must be allocated based on the ratio of federal adjusted
26.3 gross income reduced by the earned income not subject to tax
26.4 under this chapter over federal adjusted gross income.
26.5 (g) The commissioner shall construct tables showing the
26.6 amount of the credit at various income levels and make them
26.7 available to taxpayers. The tables shall follow the schedule
26.8 contained in this subdivision, except that the commissioner may
26.9 graduate the transition between income brackets.
26.10 Sec. 13. Minnesota Statutes 1998, section 290.0674,
26.11 subdivision 1, is amended to read:
26.12 Subdivision 1. [CREDIT ALLOWED.] An individual is allowed
26.13 a credit against the tax imposed by this chapter in an amount
26.14 equal to the amount paid for education-related expenses for
26.15 a dependent qualifying child in kindergarten through grade 12.
26.16 For purposes of this section, "education-related expenses" means:
26.17 (1) fees or tuition for instruction by an instructor under
26.18 section 120A.22, subdivision 10, clause (1), (2), (3), (4), or
26.19 (5), or by a member of the Minnesota music teachers association,
26.20 for instruction outside the regular school day or school year,
26.21 including tutoring, driver's education offered as part of school
26.22 curriculum, regardless of whether it is taken from a public or
26.23 private entity or summer camps, in grade or age appropriate
26.24 curricula that supplement curricula and instruction available
26.25 during the regular school year, that assists a dependent to
26.26 improve knowledge of core curriculum areas or to expand
26.27 knowledge and skills under the graduation rule under section
26.28 120B.02 and that do not include the teaching of religious
26.29 tenets, doctrines, or worship, the purpose of which is to
26.30 instill such tenets, doctrines, or worship;
26.31 (2) expenses for textbooks, including books and other
26.32 instructional materials and equipment used in elementary and
26.33 secondary schools in teaching only those subjects legally and
26.34 commonly taught in public elementary and secondary schools in
26.35 this state. "Textbooks" does not include instructional books
26.36 and materials used in the teaching of religious tenets,
27.1 doctrines, or worship, the purpose of which is to instill such
27.2 tenets, doctrines, or worship, nor does it include books or
27.3 materials for extracurricular activities including sporting
27.4 events, musical or dramatic events, speech activities, driver's
27.5 education, or similar programs;
27.6 (3) a maximum expense of $200 per family for personal
27.7 computer hardware, excluding single purpose processors, and
27.8 educational software that assists a dependent to improve
27.9 knowledge of core curriculum areas or to expand knowledge and
27.10 skills under the graduation rule under section 120B.02 purchased
27.11 for use in the taxpayer's home and not used in a trade or
27.12 business regardless of whether the computer is required by the
27.13 dependent's school; and
27.14 (4) the amount paid to others for transportation of a
27.15 dependent qualifying child attending an elementary or secondary
27.16 school situated in Minnesota, North Dakota, South Dakota, Iowa,
27.17 or Wisconsin, wherein a resident of this state may legally
27.18 fulfill the state's compulsory attendance laws, which is not
27.19 operated for profit, and which adheres to the provisions of the
27.20 Civil Rights Act of 1964 and chapter 363.
27.21 For purposes of this section, "qualifying child" has the
27.22 meaning given in section 32(c)(3) of the Internal Revenue Code.
27.23 Sec. 14. Minnesota Statutes 1998, section 290.0674,
27.24 subdivision 2, is amended to read:
27.25 Subd. 2. [LIMITATIONS.] (a) For claimants with income not
27.26 greater than $33,500, the maximum credit allowed is $1,000 per
27.27 qualifying child and $2,000 per family. No credit is allowed
27.28 for education-related expenses for claimants with income greater
27.29 than $33,500 $37,500. The maximum credit per child is reduced
27.30 by $1 for each $4 of household income over $33,500, and the
27.31 maximum credit per family is reduced by $2 for each $4 of
27.32 household income over $33,500, but in no case is the credit less
27.33 than zero.
27.34 For purposes of this section "income" has the meaning given
27.35 in section 290.067, subdivision 2a. In the case of a married
27.36 claimant, a credit is not allowed unless a joint income tax
28.1 return is filed.
28.2 (b) For a nonresident or part-year resident, the credit
28.3 determined under subdivision 1 and the maximum credit amount in
28.4 paragraph (a) must be allocated using the percentage calculated
28.5 in section 290.06, subdivision 2c, paragraph (e).
28.6 Sec. 15. [290.0675] [MARRIAGE PENALTY CREDIT.]
28.7 Subdivision 1. [DEFINITIONS.] (a) For purposes of this
28.8 section the following terms have the meanings given.
28.9 (b) "Earned income" means earned income as defined in
28.10 section 32(c)(2) of the Internal Revenue Code.
28.11 (c) "Taxable income" means net income as defined in section
28.12 290.01, subdivision 19.
28.13 (d) "Earned income of lesser-earning spouse" means the
28.14 earned income of the spouse with the lesser amount of earned
28.15 income as defined in paragraph (b) for the taxable year.
28.16 Subd. 2. [CREDIT ALLOWED.] A married couple filing a joint
28.17 return is allowed a credit against the tax imposed under section
28.18 290.06.
28.19 The minimum taxable income for the married couple to be
28.20 eligible for the credit is $25,000, and the minimum earned
28.21 income in order for the couple to be eligible for the credit is
28.22 $14,000 for each spouse.
28.23 Subd. 3. [CREDIT AMOUNT.] The credit amount is as shown in
28.24 the table in this subdivision, based on the couple's taxable
28.25 income for the tax year and on the earned income of the
28.26 lesser-earning spouse.
28.27 Credit For Credit For
28.28 Earned Income of Taxable Income Taxable Income
28.29 Lesser Earning Spouse $25,000-$99,999 $100,000-over
28.30 $14,000 - $14,999 $9 $0
28.31 $15,000 - $15,999 $27 $0
28.32 $16,000 - $16,999 $44 $0
28.33 $17,000 - $17,999 $62 $0
28.34 $18,000 - $18,999 $79 $0
28.35 $19,000 - $19,999 $97 $0
28.36 $20,000 - $20,999 $114 $0
29.1 $21,000 - $21,999 $132 $0
29.2 $22,000 - $22,999 $149 $0
29.3 $23,000 - $23,999 $162 $0
29.4 $24,000 - $24,999 $162 $0
29.5 $25,000 - $25,999 $162 $0
29.6 $26,000 - $26,999 $162 $0
29.7 $27,000 - $27,999 $162 $0
29.8 $28,000 - $28,999 $162 $9
29.9 $29,000 - $29,999 $162 $16
29.10 $30,000 - $30,999 $162 $24
29.11 $31,000 - $31,999 $162 $31
29.12 $32,000 - $32,999 $162 $39
29.13 $33,000 - $33,999 $162 $46
29.14 $34,000 - $34,999 $162 $54
29.15 $35,000 - $35,999 $162 $61
29.16 $36,000 - $36,999 $162 $69
29.17 $37,000 - $37,999 $162 $76
29.18 $38,000 - $38,999 $162 $84
29.19 $39,000 - $39,999 $162 $91
29.20 $40,000 - $40,999 $162 $99
29.21 $41,000 - $41,999 $162 $106
29.22 $42,000 - $42,999 $162 $114
29.23 $43,000 - $43,999 $162 $121
29.24 $44,000 - $44,999 $162 $129
29.25 $45,000 - $45,999 $162 $136
29.26 $46,000 - $46,999 $162 $144
29.27 $47,000 - $47,999 $162 $151
29.28 $48,000 - $48,999 $162 $159
29.29 $49,000 - $49,999 $162 $166
29.30 $50,000 - $50,999 $162 $174
29.31 $51,000 - $51,999 $162 $181
29.32 $52,000 - $52,999 $162 $189
29.33 $53,000 - $53,999 $162 $196
29.34 $54,000 - $54,999 $162 $204
29.35 $55,000 - $55,999 $162 $211
29.36 $56,000 - $56,999 $162 $219
30.1 $57,000 - $57,999 $162 $226
30.2 $58,000 - $58,999 $162 $234
30.3 $59,000 - $59,999 $162 $241
30.4 $60,000 - $60,999 $162 $249
30.5 $61,000 - $61,999 $162 $256
30.6 $62,000 and over $162 $261
30.7 Subd. 4. [NONRESIDENTS AND PART-YEAR RESIDENTS.] For a
30.8 nonresident or part-year resident, the credit must be allocated
30.9 based on the percentage calculated under section 290.06,
30.10 subdivision 2c, paragraph (e).
30.11 Subd. 5. [INFLATION ADJUSTMENT.] The dollar amount of
30.12 earned income of the lesser-earning spouse, taxable income, and
30.13 marriage penalty credit in the table in subdivision 3 must be
30.14 adjusted for inflation. The commissioner shall adjust the
30.15 amounts by the percentage determined under section 290.06,
30.16 subdivision 2d, for the taxable year.
30.17 Sec. 16. Minnesota Statutes 1998, section 290.091,
30.18 subdivision 1, is amended to read:
30.19 Subdivision 1. [IMPOSITION OF TAX.] In addition to all
30.20 other taxes imposed by this chapter a tax is imposed on
30.21 individuals, estates, and trusts equal to the excess (if any) of
30.22 (a) an amount equal to seven 6.5 percent of alternative
30.23 minimum taxable income after subtracting the exemption amount,
30.24 over
30.25 (b) the regular tax for the taxable year.
30.26 Sec. 17. Minnesota Statutes 1998, section 290.091,
30.27 subdivision 2, is amended to read:
30.28 Subd. 2. [DEFINITIONS.] For purposes of the tax imposed by
30.29 this section, the following terms have the meanings given:
30.30 (a) "Alternative minimum taxable income" means the sum of
30.31 the following for the taxable year:
30.32 (1) the taxpayer's federal alternative minimum taxable
30.33 income as defined in section 55(b)(2) of the Internal Revenue
30.34 Code;
30.35 (2) the taxpayer's itemized deductions allowed in computing
30.36 federal alternative minimum taxable income, but excluding:
31.1 (i) the Minnesota charitable contribution deduction;
31.2 (ii) the medical expense deduction;
31.3 (iii) the casualty, theft, and disaster loss deduction; and
31.4 (iv) the impairment-related work expenses of a disabled
31.5 person; and
31.6 (v) holocaust victims' settlement payments to the extent
31.7 allowed under section 290.01, subdivision 19b; and
31.8 (3) for depletion allowances computed under section 613A(c)
31.9 of the Internal Revenue Code, with respect to each property (as
31.10 defined in section 614 of the Internal Revenue Code), to the
31.11 extent not included in federal alternative minimum taxable
31.12 income, the excess of the deduction for depletion allowable
31.13 under section 611 of the Internal Revenue Code for the taxable
31.14 year over the adjusted basis of the property at the end of the
31.15 taxable year (determined without regard to the depletion
31.16 deduction for the taxable year);
31.17 (4) to the extent not included in federal alternative
31.18 minimum taxable income, the amount of the tax preference for
31.19 intangible drilling cost under section 57(a)(2) of the Internal
31.20 Revenue Code determined without regard to subparagraph (E);
31.21 (5) to the extent not included in federal alternative
31.22 minimum taxable income, the amount of interest income as
31.23 provided by section 290.01, subdivision 19a, clause (1);
31.24 (6) amounts added to federal taxable income as provided by
31.25 section 290.01, subdivision 19a, clauses (5), (6), and (7);
31.26 less the sum of the amounts determined under the following
31.27 clauses (1) to (4):
31.28 (1) interest income as defined in section 290.01,
31.29 subdivision 19b, clause (1);
31.30 (2) an overpayment of state income tax as provided by
31.31 section 290.01, subdivision 19b, clause (2), to the extent
31.32 included in federal alternative minimum taxable income; and
31.33 (3) the amount of investment interest paid or accrued
31.34 within the taxable year on indebtedness to the extent that the
31.35 amount does not exceed net investment income, as defined in
31.36 section 163(d)(4) of the Internal Revenue Code. Interest does
32.1 not include amounts deducted in computing federal adjusted gross
32.2 income; and.
32.3 (4) amounts subtracted from federal taxable income as
32.4 provided by section 290.01, subdivision 19b, clauses (11) and
32.5 (12).
32.6 In the case of an estate or trust, alternative minimum
32.7 taxable income must be computed as provided in section 59(c) of
32.8 the Internal Revenue Code.
32.9 (b) "Investment interest" means investment interest as
32.10 defined in section 163(d)(3) of the Internal Revenue Code.
32.11 (c) "Tentative minimum tax" equals seven 6.5 percent of
32.12 alternative minimum taxable income after subtracting the
32.13 exemption amount determined under subdivision 3.
32.14 (d) "Regular tax" means the tax that would be imposed under
32.15 this chapter (without regard to this section and section
32.16 290.032), reduced by the sum of the nonrefundable credits
32.17 allowed under this chapter.
32.18 (e) "Net minimum tax" means the minimum tax imposed by this
32.19 section.
32.20 (f) "Minnesota charitable contribution deduction" means a
32.21 charitable contribution deduction under section 170 of the
32.22 Internal Revenue Code to or for the use of an entity described
32.23 in section 290.21, subdivision 3, clauses (a) to (e). When the
32.24 federal deduction for charitable contributions is limited under
32.25 section 170(b) of the Internal Revenue Code, the allowable
32.26 contributions in the year of contribution are deemed to be first
32.27 contributions to entities described in section 290.21,
32.28 subdivision 3, clauses (a) to (e).
32.29 Sec. 18. Minnesota Statutes 1998, section 290.091,
32.30 subdivision 6, is amended to read:
32.31 Subd. 6. [CREDIT FOR PRIOR YEARS' LIABILITY.] (a) A credit
32.32 is allowed against the tax imposed by this chapter on
32.33 individuals, trusts, and estates equal to the minimum tax credit
32.34 for the taxable year. The minimum tax credit equals the
32.35 adjusted net minimum tax for taxable years beginning after
32.36 December 31, 1988, reduced by the minimum tax credits allowed in
33.1 a prior taxable year. The credit may not exceed the excess (if
33.2 any) for the taxable year of
33.3 (1) the regular tax, over
33.4 (2) the greater of (i) the tentative alternative minimum
33.5 tax, or (ii) zero.
33.6 (b) The adjusted net minimum tax for a taxable year equals
33.7 the lesser of the net minimum tax or the excess (if any) of
33.8 (1) the tentative minimum tax, over
33.9 (2) seven 6.5 percent of the sum of
33.10 (i) adjusted gross income as defined in section 62 of the
33.11 Internal Revenue Code,
33.12 (ii) interest income as defined in section 290.01,
33.13 subdivision 19a, clause (1),
33.14 (iii) the amount added to federal taxable income as
33.15 provided by section 290.01, subdivision 19a, clauses (5), (6),
33.16 and (7),
33.17 (iv) interest on specified private activity bonds, as
33.18 defined in section 57(a)(5) of the Internal Revenue Code, to the
33.19 extent not included under clause (ii),
33.20 (v) (iv) depletion as defined in section 57(a)(1),
33.21 determined without regard to the last sentence of paragraph (1),
33.22 of the Internal Revenue Code, less
33.23 (vi) (v) the deductions allowed in computing alternative
33.24 minimum taxable income provided in subdivision 2, paragraph (a),
33.25 clause (2) of the first series of clauses and clauses (1),
33.26 (2), and (3), and (4) of the second series of clauses, and
33.27 (vii) (vi) the exemption amount determined under
33.28 subdivision 3.
33.29 In the case of an individual who is not a Minnesota
33.30 resident for the entire year, adjusted net minimum tax must be
33.31 multiplied by the fraction defined in section 290.06,
33.32 subdivision 2c, paragraph (e). In the case of a trust or
33.33 estate, adjusted net minimum tax must be multiplied by the
33.34 fraction defined under subdivision 4, paragraph (b).
33.35 Sec. 19. Minnesota Statutes 1998, section 290.0921,
33.36 subdivision 5, is amended to read:
34.1 Subd. 5. [CHARITABLE CONTRIBUTIONS.] (a) A deduction from
34.2 alternative minimum taxable net income is allowed equal to
34.3 the contributions subject to the deduction for charitable
34.4 contributions under section 290.21, subdivision 3, without
34.5 application of the limitation in section 290.21, subdivision 3.
34.6 The deduction allowable for capital gain property is limited to
34.7 the adjusted basis of the property as defined in section 290.01,
34.8 subdivision 19f. The term capital gain property has the meaning
34.9 given by section 170(b)(1)(C)(iv) of the Internal Revenue Code,
34.10 but does not include property to which an election under section
34.11 170(b)(1)(C)(iii) of the Internal Revenue Code applies.
34.12 (b) The amount of the deduction may not exceed 15 percent
34.13 of alternative minimum taxable net income less the deduction
34.14 allowed under subdivision 6.
34.15 Sec. 20. Minnesota Statutes 1998, section 290.095,
34.16 subdivision 3, is amended to read:
34.17 Subd. 3. [CARRYOVER.] (a) A net operating loss incurred in
34.18 a taxable year: (i) beginning after December 31, 1986, shall be
34.19 a net operating loss carryover to each of the 15 taxable years
34.20 following the taxable year of such loss; (ii) beginning before
34.21 January 1, 1987, shall be a net operating loss carryover to each
34.22 of the five taxable years following the taxable year of such
34.23 loss subject to the provisions of Minnesota Statutes 1986,
34.24 section 290.095; and (iii) beginning before January 1, 1987,
34.25 shall be a net operating loss carryback to each of the three
34.26 taxable years preceding the loss year subject to the provisions
34.27 of Minnesota Statutes 1986, section 290.095.
34.28 (b) The entire amount of the net operating loss for any
34.29 taxable year shall be carried to the earliest of the taxable
34.30 years to which such loss may be carried. The portion of such
34.31 loss which shall be carried to each of the other taxable years
34.32 shall be the excess, if any, of the amount of such loss over the
34.33 sum of the taxable net income, adjusted by the modifications
34.34 specified in subdivision 4, for each of the taxable years to
34.35 which such loss may be carried.
34.36 (c) Where a corporation does business both within and
35.1 without Minnesota, and apportions its income under the
35.2 provisions of section 290.191, the net operating loss deduction
35.3 incurred in any taxable year shall be allowed to the extent of
35.4 the apportionment ratio of the loss year.
35.5 (d) The provisions of sections 381, 382, and 384 of the
35.6 Internal Revenue Code apply to carryovers in certain corporate
35.7 acquisitions and special limitations on net operating loss
35.8 carryovers. The limitation amount determined under section 382
35.9 shall be applied to net income, before apportionment, in each
35.10 post change year to which a loss is carried.
35.11 Sec. 21. Minnesota Statutes 1998, section 290.17,
35.12 subdivision 3, is amended to read:
35.13 Subd. 3. [TRADE OR BUSINESS INCOME; GENERAL RULE.] All
35.14 income of a trade or business is subject to apportionment except
35.15 nonbusiness income. Income derived from carrying on a trade or
35.16 business must be assigned to this state if the trade or business
35.17 is conducted wholly within this state, assigned outside this
35.18 state if conducted wholly without this state and apportioned
35.19 between this state and other states and countries under this
35.20 subdivision if conducted partly within and partly without this
35.21 state. For purposes of determining whether a trade or business
35.22 is carried on exclusively within or without this state:
35.23 (a) A trade or business physically located exclusively
35.24 within this state is nevertheless carried on partly within and
35.25 partly without this state if any of the principles set forth in
35.26 section 290.191 for the allocation of sales or receipts within
35.27 or without this state when applied to the taxpayer's situation
35.28 result in the allocation of any sales or receipts without this
35.29 state.
35.30 (b) A trade or business physically located exclusively
35.31 without this state is nevertheless carried on partly within and
35.32 partly without this state if any of the principles set forth in
35.33 section 290.191 for the allocation of sales or receipts within
35.34 or without this state when applied to the taxpayer's situation
35.35 result in the allocation of any sales or receipts without this
35.36 state. The jurisdiction to tax such a business under this
36.1 chapter must be determined in accordance with sections 290.014
36.2 and 290.015.
36.3 Sec. 22. Minnesota Statutes 1998, section 290.17,
36.4 subdivision 4, is amended to read:
36.5 Subd. 4. [UNITARY BUSINESS PRINCIPLE.] (a) If a trade or
36.6 business conducted wholly within this state or partly within and
36.7 partly without this state is part of a unitary business, the
36.8 entire income of the unitary business is subject to
36.9 apportionment pursuant to section 290.191. Notwithstanding
36.10 subdivision 2, paragraph (c), none of the income of a unitary
36.11 business is considered to be derived from any particular source
36.12 and none may be allocated to a particular place except as
36.13 provided by the applicable apportionment formula. The
36.14 provisions of this subdivision do not apply to farm income
36.15 subject to subdivision 5, paragraph (a), business income subject
36.16 to subdivision 5, paragraph (b) or (c), income of an insurance
36.17 company determined under section 290.35, or income of an
36.18 investment company determined under section 290.36.
36.19 (b) The term "unitary business" means business activities
36.20 or operations which are of mutual benefit, dependent upon, or
36.21 contributory to one another, individually or as a group result
36.22 in a flow of value between them. The term may be applied within
36.23 a single legal entity or between multiple entities and without
36.24 regard to whether each entity is a sole proprietorship, a
36.25 corporation, a partnership or a trust.
36.26 (c) Unity is presumed whenever there is unity of ownership,
36.27 operation, and use, evidenced by centralized management or
36.28 executive force, centralized purchasing, advertising,
36.29 accounting, or other controlled interaction, but the absence of
36.30 these centralized activities will not necessarily evidence a
36.31 nonunitary business. Unity is also presumed when business
36.32 activities or operations are of mutual benefit, dependent upon
36.33 or contributory to one another, either individually or as a
36.34 group.
36.35 (d) Where a business operation conducted in Minnesota is
36.36 owned by a business entity that carries on business activity
37.1 outside the state different in kind from that conducted within
37.2 this state, and the other business is conducted entirely outside
37.3 the state, it is presumed that the two business operations are
37.4 unitary in nature, interrelated, connected, and interdependent
37.5 unless it can be shown to the contrary.
37.6 (e) Unity of ownership is not deemed to exist when a
37.7 corporation is involved unless that corporation is a member of a
37.8 group of two or more business entities and more than 50 percent
37.9 of the voting stock of each member of the group is directly or
37.10 indirectly owned by a common owner or by common owners, either
37.11 corporate or noncorporate, or by one or more of the member
37.12 corporations of the group. For this purpose, the term "voting
37.13 stock" shall include membership interests of mutual insurance
37.14 holding companies formed under section 60A.077.
37.15 (f) The net income and apportionment factors under section
37.16 290.191 or 290.20 of foreign corporations and other foreign
37.17 entities which are part of a unitary business shall not be
37.18 included in the net income or the apportionment factors of the
37.19 unitary business. A foreign corporation or other foreign entity
37.20 which is required to file a return under this chapter shall file
37.21 on a separate return basis. The net income and apportionment
37.22 factors under section 290.191 or 290.20 of foreign operating
37.23 corporations shall not be included in the net income or the
37.24 apportionment factors of the unitary business except as provided
37.25 in paragraph (g).
37.26 (g) The adjusted net income of a foreign operating
37.27 corporation shall be deemed to be paid as a dividend on the last
37.28 day of its taxable year to each shareholder thereof, in
37.29 proportion to each shareholder's ownership, with which such
37.30 corporation is engaged in a unitary business. Such deemed
37.31 dividend shall be treated as a dividend under section 290.21,
37.32 subdivision 4.
37.33 Dividends actually paid by a foreign operating corporation
37.34 to a corporate shareholder which is a member of the same unitary
37.35 business as the foreign operating corporation shall be
37.36 eliminated from the net income of the unitary business in
38.1 preparing a combined report for the unitary business. The
38.2 adjusted net income of a foreign operating corporation shall be
38.3 its net income adjusted as follows:
38.4 (1) any taxes paid or accrued to a foreign country, the
38.5 commonwealth of Puerto Rico, or a United States possession or
38.6 political subdivision of any of the foregoing shall be a
38.7 deduction; and
38.8 (2) the subtraction from federal taxable income for
38.9 payments received from foreign corporations or foreign operating
38.10 corporations under section 290.01, subdivision 19d, clause (11),
38.11 shall not be allowed.
38.12 If a foreign operating corporation incurs a net loss,
38.13 neither income nor deduction from that corporation shall be
38.14 included in determining the net income of the unitary business.
38.15 (h) For purposes of determining the net income of a unitary
38.16 business and the factors to be used in the apportionment of net
38.17 income pursuant to section 290.191 or 290.20, there must be
38.18 included only the income and apportionment factors of domestic
38.19 corporations or other domestic entities other than foreign
38.20 operating corporations that are determined to be part of the
38.21 unitary business pursuant to this subdivision, notwithstanding
38.22 that foreign corporations or other foreign entities might be
38.23 included in the unitary business.
38.24 (i) Deductions for expenses, interest, or taxes otherwise
38.25 allowable under this chapter that are connected with or
38.26 allocable against dividends, deemed dividends described in
38.27 paragraph (g), or royalties, fees, or other like income
38.28 described in section 290.01, subdivision 19d, clause (11), shall
38.29 not be disallowed.
38.30 (j) Each corporation or other entity, except a sole
38.31 proprietorship, that is part of a unitary business must file
38.32 combined reports as the commissioner determines. On the
38.33 reports, all intercompany transactions between entities included
38.34 pursuant to paragraph (h) must be eliminated and the entire net
38.35 income of the unitary business determined in accordance with
38.36 this subdivision is apportioned among the entities by using each
39.1 entity's Minnesota factors for apportionment purposes in the
39.2 numerators of the apportionment formula and the total factors
39.3 for apportionment purposes of all entities included pursuant to
39.4 paragraph (h) in the denominators of the apportionment formula.
39.5 (k) If a corporation has been divested from a unitary
39.6 business and is included in a combined report for a fractional
39.7 part of the common accounting period of the combined report:
39.8 (1) its income includable in the combined report is its
39.9 income incurred for that part of the year determined by
39.10 proration or separate accounting; and
39.11 (2) its sales, property, and payroll included in the
39.12 apportionment formula must be prorated or accounted for
39.13 separately.
39.14 Sec. 23. Minnesota Statutes 1998, section 290.17,
39.15 subdivision 6, is amended to read:
39.16 Subd. 6. [NONBUSINESS INCOME.] For a trade or business for
39.17 which allocation of income within and without this state is
39.18 required, if the taxpayer has any income not connected with the
39.19 trade or business carried on partly within and partly without
39.20 this state that income must be allocated under subdivision 2.
39.21 Intangible property is employed in a trade or business if the
39.22 owner of the property holds it as a means of furthering the
39.23 trade or business. Nonbusiness income is income of the trade or
39.24 business that cannot be apportioned by this state because of the
39.25 United States Constitution or the constitution of the state of
39.26 Minnesota and includes income that cannot constitutionally be
39.27 apportioned to this state because it is derived from a capital
39.28 transaction that solely serves an investment function.
39.29 Nonbusiness income must be allocated under subdivision 2.
39.30 Sec. 24. Minnesota Statutes 1998, section 290.191,
39.31 subdivision 2, is amended to read:
39.32 Subd. 2. [APPORTIONMENT FORMULA OF GENERAL APPLICATION.]
39.33 Except for those trades or businesses required to use a
39.34 different formula under subdivision 3 or section 290.35 or
39.35 290.36, and for those trades or businesses that receive
39.36 permission to use some other method under section 290.20 or
40.1 under subdivision 4, a trade or business required to apportion
40.2 its net income must apportion its income to this state on the
40.3 basis of the percentage obtained by taking the sum of:
40.4 (1) 70 75 percent of the percentage which the sales made
40.5 within this state in connection with the trade or business
40.6 during the tax period are of the total sales wherever made in
40.7 connection with the trade or business during the tax period;
40.8 (2) 15 12.5 percent of the percentage which the total
40.9 tangible property used by the taxpayer in this state in
40.10 connection with the trade or business during the tax period is
40.11 of the total tangible property, wherever located, used by the
40.12 taxpayer in connection with the trade or business during the tax
40.13 period; and
40.14 (3) 15 12.5 percent of the percentage which the taxpayer's
40.15 total payrolls paid or incurred in this state or paid in respect
40.16 to labor performed in this state in connection with the trade or
40.17 business during the tax period are of the taxpayer's total
40.18 payrolls paid or incurred in connection with the trade or
40.19 business during the tax period.
40.20 Sec. 25. Minnesota Statutes 1998, section 290.191,
40.21 subdivision 3, is amended to read:
40.22 Subd. 3. [APPORTIONMENT FORMULA FOR FINANCIAL
40.23 INSTITUTIONS.] Except for an investment company required to
40.24 apportion its income under section 290.36, a financial
40.25 institution that is required to apportion its net income must
40.26 apportion its net income to this state on the basis of the
40.27 percentage obtained by taking the sum of:
40.28 (1) 70 75 percent of the percentage which the receipts from
40.29 within this state in connection with the trade or business
40.30 during the tax period are of the total receipts in connection
40.31 with the trade or business during the tax period, from wherever
40.32 derived;
40.33 (2) 15 12.5 percent of the percentage which the sum of the
40.34 total tangible property used by the taxpayer in this state and
40.35 the intangible property owned by the taxpayer and attributed to
40.36 this state in connection with the trade or business during the
41.1 tax period is of the sum of the total tangible property,
41.2 wherever located, used by the taxpayer and the intangible
41.3 property owned by the taxpayer and attributed to all states in
41.4 connection with the trade or business during the tax period; and
41.5 (3) 15 12.5 percent of the percentage which the taxpayer's
41.6 total payrolls paid or incurred in this state or paid in respect
41.7 to labor performed in this state in connection with the trade or
41.8 business during the tax period are of the taxpayer's total
41.9 payrolls paid or incurred in connection with the trade or
41.10 business during the tax period.
41.11 Sec. 26. Minnesota Statutes 1998, section 290.9725, is
41.12 amended to read:
41.13 290.9725 [S CORPORATION.]
41.14 For purposes of this chapter, the term "S corporation"
41.15 means any corporation having a valid election in effect for the
41.16 taxable year under section 1362 of the Internal Revenue Code,
41.17 except that a corporation which either:
41.18 (1) is a financial institution to which either section 585
41.19 or section 593 of the Internal Revenue Code applies; or
41.20 (2) has a wholly owned subsidiary as described in section
41.21 1361(b)(3)(B) of the Internal Revenue Code which is a financial
41.22 institution as described above
41.23 is not an "S" corporation for the purposes of this chapter. An
41.24 S corporation shall not be subject to the taxes imposed by this
41.25 chapter, except:
41.26 (1) the taxes imposed under sections 290.0922, 290.92,
41.27 290.9727, 290.9728, and 290.9729; and
41.28 (2) the tax under sections 290.06, subdivision 1, and
41.29 290.0921 apply to a financial institution to which either
41.30 section 585 or 593 of the Internal Revenue Code applies or that
41.31 has a wholly owned subsidiary as described in section
41.32 1361(b)(3)(B) of the Internal Revenue Code which is a financial
41.33 institution under section 585 or 593 of the Internal Revenue
41.34 Code.
41.35 Sec. 27. Minnesota Statutes 1998, section 290.9726, is
41.36 amended by adding a subdivision to read:
42.1 Subd. 7. [FINANCIAL INSTITUTIONS.] An S corporation that
42.2 is subject to the tax under section 290.9725, clause (2), must
42.3 report to each shareholder an apportionment of the S
42.4 corporation's tax obligation for the taxable year for purposes
42.5 of the credit under section 290.06, subdivision 26. The
42.6 apportionment to a shareholder must be made in proportion to the
42.7 amount of taxable income of the S corporation apportioned to the
42.8 shareholder.
42.9 Sec. 28. Minnesota Statutes 1998, section 290A.03,
42.10 subdivision 3, is amended to read:
42.11 Subd. 3. [INCOME.] (1) "Income" means the sum of the
42.12 following:
42.13 (a) federal adjusted gross income as defined in the
42.14 Internal Revenue Code; and
42.15 (b) the sum of the following amounts to the extent not
42.16 included in clause (a):
42.17 (i) all nontaxable income;
42.18 (ii) the amount of a passive activity loss that is not
42.19 disallowed as a result of section 469, paragraph (i) or (m) of
42.20 the Internal Revenue Code and the amount of passive activity
42.21 loss carryover allowed under section 469(b) of the Internal
42.22 Revenue Code;
42.23 (iii) an amount equal to the total of any discharge of
42.24 qualified farm indebtedness of a solvent individual excluded
42.25 from gross income under section 108(g) of the Internal Revenue
42.26 Code;
42.27 (iv) cash public assistance and relief;
42.28 (v) any pension or annuity (including railroad retirement
42.29 benefits, all payments received under the federal Social
42.30 Security Act, supplemental security income, and veterans
42.31 benefits), which was not exclusively funded by the claimant or
42.32 spouse, or which was funded exclusively by the claimant or
42.33 spouse and which funding payments were excluded from federal
42.34 adjusted gross income in the years when the payments were made;
42.35 (vi) interest received from the federal or a state
42.36 government or any instrumentality or political subdivision
43.1 thereof;
43.2 (vii) workers' compensation;
43.3 (viii) nontaxable strike benefits;
43.4 (ix) the gross amounts of payments received in the nature
43.5 of disability income or sick pay as a result of accident,
43.6 sickness, or other disability, whether funded through insurance
43.7 or otherwise;
43.8 (x) a lump sum distribution under section 402(e)(3) of the
43.9 Internal Revenue Code;
43.10 (xi) contributions made by the claimant to an individual
43.11 retirement account, including a qualified voluntary employee
43.12 contribution; simplified employee pension plan; self-employed
43.13 retirement plan; cash or deferred arrangement plan under section
43.14 401(k) of the Internal Revenue Code; or deferred compensation
43.15 plan under section 457 of the Internal Revenue Code; and
43.16 (xii) nontaxable scholarship or fellowship grants.
43.17 In the case of an individual who files an income tax return
43.18 on a fiscal year basis, the term "federal adjusted gross income"
43.19 shall mean federal adjusted gross income reflected in the fiscal
43.20 year ending in the calendar year. Federal adjusted gross income
43.21 shall not be reduced by the amount of a net operating loss
43.22 carryback or carryforward or a capital loss carryback or
43.23 carryforward allowed for the year.
43.24 (2) "Income" does not include:
43.25 (a) amounts excluded pursuant to the Internal Revenue Code,
43.26 sections 101(a) and 102;
43.27 (b) amounts of any pension or annuity which was exclusively
43.28 funded by the claimant or spouse and which funding payments were
43.29 not excluded from federal adjusted gross income in the years
43.30 when the payments were made;
43.31 (c) surplus food or other relief in kind supplied by a
43.32 governmental agency;
43.33 (d) relief granted under this chapter; or
43.34 (e) child support payments received under a temporary or
43.35 final decree of dissolution or legal separation; or
43.36 (f) holocaust settlement payments as defined in section
44.1 290.01, subdivision 32.
44.2 (3) The sum of the following amounts may be subtracted from
44.3 income:
44.4 (a) for the claimant's first dependent, the exemption
44.5 amount multiplied by 1.4;
44.6 (b) for the claimant's second dependent, the exemption
44.7 amount multiplied by 1.3;
44.8 (c) for the claimant's third dependent, the exemption
44.9 amount multiplied by 1.2;
44.10 (d) for the claimant's fourth dependent, the exemption
44.11 amount multiplied by 1.1;
44.12 (e) for the claimant's fifth dependent, the exemption
44.13 amount; and
44.14 (f) if the claimant or claimant's spouse was disabled or
44.15 attained the age of 65 on or before December 31 of the year for
44.16 which the taxes were levied or rent paid, the exemption amount.
44.17 For purposes of this subdivision, the "exemption amount"
44.18 means the exemption amount under section 151(d) of the Internal
44.19 Revenue Code for the taxable year for which the income is
44.20 reported.
44.21 Sec. 29. [NONBUSINESS INCOME; PRE-1999 TAX YEARS.]
44.22 If all items of income, gain, or loss are reported by a
44.23 taxpayer as business income or loss on an original or amended
44.24 return for a tax year to which this section applies, the
44.25 commissioner of revenue shall not adjust the tax liability for
44.26 that tax year, or for any other tax year affected by a carryover
44.27 from that tax year, by treating any of the items as nonbusiness
44.28 income or loss under Minnesota Statutes, section 290.17,
44.29 subdivision 6. Any adjustment treating an item as nonbusiness
44.30 income or loss ordered by the commissioner before the effective
44.31 date of this section must be reversed if the order is subject to
44.32 administrative or judicial challenge on the effective date and
44.33 such a challenge is timely filed. The reporting of any item as
44.34 nonbusiness income, gain, or loss does not preclude the
44.35 application of this section if the taxpayer may not
44.36 constitutionally be required to treat the item as business
45.1 income, gain, or loss.
45.2 Sec. 30. [BANK S CORPORATION SHAREHOLDERS; ALTERNATIVE
45.3 MINIMUM TAX.]
45.4 For taxable years beginning after December 31, 1997, and
45.5 before January 1, 1999, a taxpayer is allowed a deduction in
45.6 computing alternative minimum taxable income under Minnesota
45.7 Statutes 1998, section 290.091, subdivision 2, paragraph (a),
45.8 equal to the amount of the subtraction under Minnesota Statutes
45.9 1998, section 290.01, subdivision 19b, clause (13).
45.10 Sec. 31. [APPROPRIATION.]
45.11 (a) $100,000 is appropriated from the general fund to the
45.12 commissioner of revenue to make grants to one or more nonprofit
45.13 organizations, qualifying under section 501(c)(3) of the
45.14 Internal Revenue Code of 1986, to coordinate, facilitate,
45.15 encourage, and aid in the provision of taxpayer assistance
45.16 services. In making grants under this appropriation, the
45.17 commissioner shall give preference to organizations that will
45.18 use the grants to attract new and train new and existing
45.19 volunteers to provide taxpayer assistance. This appropriation
45.20 is available for fiscal years 2000 and 2001 and does not become
45.21 a part of the base.
45.22 (b) "Taxpayer assistance services" means accounting and tax
45.23 preparation services provided by volunteers to low-income and
45.24 disadvantaged Minnesota residents to help them file federal and
45.25 state income tax returns and Minnesota property tax refund
45.26 claims and to provide personal representation before the
45.27 department of revenue and the Internal Revenue Service.
45.28 Sec. 32. [EFFECTIVE DATE.]
45.29 (a) Section 1 applies to claims written off after June 30,
45.30 1999.
45.31 (b) Section 2 is intended to clarify rather than to change
45.32 the definition of resident and is effective for all
45.33 examinations, claims for refund, administrative appeals, and
45.34 court proceedings that are pending or begin on or after the day
45.35 following final enactment.
45.36 (c) Except as otherwise provided, sections 3 to 5, 7 to 11,
46.1 13 to 18, 21, 22, the changes to clauses (b), (c), and (j), 23,
46.2 and 26 to 28 are effective for tax years beginning after
46.3 December 31, 1998. The provisions substituting qualifying child
46.4 for dependent in sections 4 and 13 are effective for taxable
46.5 years beginning after December 31, 1999.
46.6 (d) Section 4, clause (4), and section 6 are effective for
46.7 taxable years beginning after December 31, 1999.
46.8 (e) Section 12, clause (g), is effective for tax years
46.9 beginning after December 31, 1997. The rest of section 12 is
46.10 effective for taxable years beginning after December 31, 1998.
46.11 (f) Sections 19, 20, and 22, the changes to clause (a), are
46.12 effective for tax years beginning on or after the day following
46.13 final enactment.
46.14 (g) Sections 24 and 25 are effective for taxable years
46.15 beginning after December 31, 2000.
46.16 (h) Section 29 is effective on the day after final
46.17 enactment and applies to tax years beginning before January 1,
46.18 1999.
46.19 (i) Section 30 is effective for tax years after December
46.20 31, 1997, and beginning before January 1, 1999.
46.21 (j) Section 31 is effective the day following final
46.22 enactment.
46.23 ARTICLE 3
46.24 FEDERAL UPDATE
46.25 Section 1. Minnesota Statutes 1998, section 289A.02,
46.26 subdivision 7, is amended to read:
46.27 Subd. 7. [INTERNAL REVENUE CODE.] Unless specifically
46.28 defined otherwise, "Internal Revenue Code" means the Internal
46.29 Revenue Code of 1986, as amended through December 31, 1997 1998.
46.30 Sec. 2. Minnesota Statutes 1998, section 290.01,
46.31 subdivision 19, is amended to read:
46.32 Subd. 19. [NET INCOME.] The term "net income" means the
46.33 federal taxable income, as defined in section 63 of the Internal
46.34 Revenue Code of 1986, as amended through the date named in this
46.35 subdivision, incorporating any elections made by the taxpayer in
46.36 accordance with the Internal Revenue Code in determining federal
47.1 taxable income for federal income tax purposes, and with the
47.2 modifications provided in subdivisions 19a to 19f.
47.3 In the case of a regulated investment company or a fund
47.4 thereof, as defined in section 851(a) or 851(g) of the Internal
47.5 Revenue Code, federal taxable income means investment company
47.6 taxable income as defined in section 852(b)(2) of the Internal
47.7 Revenue Code, except that:
47.8 (1) the exclusion of net capital gain provided in section
47.9 852(b)(2)(A) of the Internal Revenue Code does not apply;
47.10 (2) the deduction for dividends paid under section
47.11 852(b)(2)(D) of the Internal Revenue Code must be applied by
47.12 allowing a deduction for capital gain dividends and
47.13 exempt-interest dividends as defined in sections 852(b)(3)(C)
47.14 and 852(b)(5) of the Internal Revenue Code; and
47.15 (3) the deduction for dividends paid must also be applied
47.16 in the amount of any undistributed capital gains which the
47.17 regulated investment company elects to have treated as provided
47.18 in section 852(b)(3)(D) of the Internal Revenue Code.
47.19 The net income of a real estate investment trust as defined
47.20 and limited by section 856(a), (b), and (c) of the Internal
47.21 Revenue Code means the real estate investment trust taxable
47.22 income as defined in section 857(b)(2) of the Internal Revenue
47.23 Code.
47.24 The net income of a designated settlement fund as defined
47.25 in section 468B(d) of the Internal Revenue Code means the gross
47.26 income as defined in section 468B(b) of the Internal Revenue
47.27 Code.
47.28 The Internal Revenue Code of 1986, as amended through
47.29 December 31, 1986, shall be in effect for taxable years
47.30 beginning after December 31, 1986. The provisions of sections
47.31 10104, 10202, 10203, 10204, 10206, 10212, 10221, 10222, 10223,
47.32 10226, 10227, 10228, 10611, 10631, 10632, and 10711 of the
47.33 Omnibus Budget Reconciliation Act of 1987, Public Law Number
47.34 100-203, the provisions of sections 1001, 1002, 1003, 1004,
47.35 1005, 1006, 1008, 1009, 1010, 1011, 1011A, 1011B, 1012, 1013,
47.36 1014, 1015, 1018, 2004, 3041, 4009, 6007, 6026, 6032, 6137,
48.1 6277, and 6282 of the Technical and Miscellaneous Revenue Act of
48.2 1988, Public Law Number 100-647, the provisions of sections
48.3 7811, 7816, and 7831 of the Omnibus Budget Reconciliation Act of
48.4 1989, Public Law Number 101-239, the provisions of sections
48.5 1305, 1704(r), and 1704(e)(1) of the Small Business Job
48.6 Protection Act, Public Law Number 104-188, and the provisions of
48.7 sections 975 and 1604(d)(2) and (e) of the Taxpayer Relief Act
48.8 of 1997, Public Law Number 105-34, and the provisions of section
48.9 4004 of the Omnibus Consolidated and Emergency Supplemental
48.10 Appropriations Act, 1999, Public Law Number 105-277 shall be
48.11 effective at the time they become effective for federal income
48.12 tax purposes.
48.13 The Internal Revenue Code of 1986, as amended through
48.14 December 31, 1987, shall be in effect for taxable years
48.15 beginning after December 31, 1987. The provisions of sections
48.16 4001, 4002, 4011, 5021, 5041, 5053, 5075, 6003, 6008, 6011,
48.17 6030, 6031, 6033, 6057, 6064, 6066, 6079, 6130, 6176, 6180,
48.18 6182, 6280, and 6281 of the Technical and Miscellaneous Revenue
48.19 Act of 1988, Public Law Number 100-647, the provisions of
48.20 sections 7815 and 7821 of the Omnibus Budget Reconciliation Act
48.21 of 1989, Public Law Number 101-239, and the provisions of
48.22 section 11702 of the Revenue Reconciliation Act of 1990, Public
48.23 Law Number 101-508, shall become effective at the time they
48.24 become effective for federal tax purposes.
48.25 The Internal Revenue Code of 1986, as amended through
48.26 December 31, 1988, shall be in effect for taxable years
48.27 beginning after December 31, 1988. The provisions of sections
48.28 7101, 7102, 7104, 7105, 7201, 7202, 7203, 7204, 7205, 7206,
48.29 7207, 7210, 7211, 7301, 7302, 7303, 7304, 7601, 7621, 7622,
48.30 7641, 7642, 7645, 7647, 7651, and 7652 of the Omnibus Budget
48.31 Reconciliation Act of 1989, Public Law Number 101-239, the
48.32 provision of section 1401 of the Financial Institutions Reform,
48.33 Recovery, and Enforcement Act of 1989, Public Law Number 101-73,
48.34 the provisions of sections 11701 and 11703 of the Revenue
48.35 Reconciliation Act of 1990, Public Law Number 101-508, and the
48.36 provisions of sections 1702(g) and 1704(f)(2)(A) and (B) of the
49.1 Small Business Job Protection Act, Public Law Number 104-188,
49.2 shall become effective at the time they become effective for
49.3 federal tax purposes.
49.4 The Internal Revenue Code of 1986, as amended through
49.5 December 31, 1989, shall be in effect for taxable years
49.6 beginning after December 31, 1989. The provisions of sections
49.7 11321, 11322, 11324, 11325, 11403, 11404, 11410, and 11521 of
49.8 the Revenue Reconciliation Act of 1990, Public Law Number
49.9 101-508, and the provisions of sections 13224 and 13261 of the
49.10 Omnibus Budget Reconciliation Act of 1993, Public Law Number
49.11 103-66, shall become effective at the time they become effective
49.12 for federal purposes.
49.13 The Internal Revenue Code of 1986, as amended through
49.14 December 31, 1990, shall be in effect for taxable years
49.15 beginning after December 31, 1990.
49.16 The provisions of section 13431 of the Omnibus Budget
49.17 Reconciliation Act of 1993, Public Law Number 103-66, shall
49.18 become effective at the time they became effective for federal
49.19 purposes.
49.20 The Internal Revenue Code of 1986, as amended through
49.21 December 31, 1991, shall be in effect for taxable years
49.22 beginning after December 31, 1991.
49.23 The provisions of sections 1936 and 1937 of the
49.24 Comprehensive National Energy Policy Act of 1992, Public Law
49.25 Number 102-486, the provisions of sections 13101, 13114, 13122,
49.26 13141, 13150, 13151, 13174, 13239, 13301, and 13442 of the
49.27 Omnibus Budget Reconciliation Act of 1993, Public Law Number
49.28 103-66, and the provisions of section 1604(a)(1), (2), and (3)
49.29 of the Taxpayer Relief Act of 1997, Public Law Number 105-34,
49.30 shall become effective at the time they become effective for
49.31 federal purposes.
49.32 The Internal Revenue Code of 1986, as amended through
49.33 December 31, 1992, shall be in effect for taxable years
49.34 beginning after December 31, 1992.
49.35 The provisions of sections 13116, 13121, 13206, 13210,
49.36 13222, 13223, 13231, 13232, 13233, 13239, 13262, and 13321 of
50.1 the Omnibus Budget Reconciliation Act of 1993, Public Law Number
50.2 103-66, the provisions of sections 1703(a), 1703(d), 1703(i),
50.3 1703(l), and 1703(m) of the Small Business Job Protection Act,
50.4 Public Law Number 104-188, and the provision of section 1604(c)
50.5 of the Taxpayer Relief Act of 1997, Public Law Number 105-34,
50.6 shall become effective at the time they become effective for
50.7 federal purposes.
50.8 The Internal Revenue Code of 1986, as amended through
50.9 December 31, 1993, shall be in effect for taxable years
50.10 beginning after December 31, 1993.
50.11 The provision of section 741 of Legislation to Implement
50.12 Uruguay Round of General Agreement on Tariffs and Trade, Public
50.13 Law Number 103-465, the provisions of sections 1, 2, and 3, of
50.14 the Self-Employed Health Insurance Act of 1995, Public Law
50.15 Number 104-7, the provision of section 501(b)(2) of the Health
50.16 Insurance Portability and Accountability Act, Public Law Number
50.17 104-191, the provisions of sections 1604 and 1704(p)(1) and (2)
50.18 of the Small Business Job Protection Act, Public Law Number
50.19 104-188, and the provisions of sections 1011, 1211(b)(1), and
50.20 1602(f) of the Taxpayer Relief Act of 1997, Public Law Number
50.21 105-34, shall become effective at the time they become effective
50.22 for federal purposes.
50.23 The Internal Revenue Code of 1986, as amended through
50.24 December 31, 1994, shall be in effect for taxable years
50.25 beginning after December 31, 1994.
50.26 The provisions of sections 1119(a), 1120, 1121, 1202(a),
50.27 1444, 1449(b), 1602(a), 1610(a), 1613, and 1805 of the Small
50.28 Business Job Protection Act, Public Law Number 104-188, the
50.29 provision of section 511 of the Health Insurance Portability and
50.30 Accountability Act, Public Law Number 104-191, and the
50.31 provisions of sections 1174 and 1601(i)(2) of the Taxpayer
50.32 Relief Act of 1997, Public Law Number 105-34, shall become
50.33 effective at the time they become effective for federal purposes.
50.34 The Internal Revenue Code of 1986, as amended through March
50.35 22, 1996, is in effect for taxable years beginning after
50.36 December 31, 1995.
51.1 The provisions of sections 1113(a), 1117, 1206(a), 1313(a),
51.2 1402(a), 1403(a), 1443, 1450, 1501(a), 1605, 1611(a), 1612,
51.3 1616, 1617, 1704(l), and 1704(m) of the Small Business Job
51.4 Protection Act, Public Law Number 104-188, the provisions of
51.5 Public Law Number 104-117, and the provisions of sections 313(a)
51.6 and (b)(1), 602(a), 913(b), 941, 961, 971, 1001(a) and (b),
51.7 1002, 1003, 1012, 1013, 1014, 1061, 1062, 1081, 1084(b), 1086,
51.8 1087, 1111(a), 1131(b) and (c), 1211(b), 1213, 1530(c)(2),
51.9 1601(f)(5) and (h), and 1604(d)(1) of the Taxpayer Relief Act of
51.10 1997, Public Law Number 105-34, the provisions of section 6010
51.11 of the Internal Revenue Service Restructuring and Reform Act of
51.12 1998, Public Law Number 105-206, and the provisions of section
51.13 4003 of the Omnibus Consolidated and Emergency Supplemental
51.14 Appropriations Act, 1999, Public Law Number 105-277, shall
51.15 become effective at the time they become effective for federal
51.16 purposes.
51.17 The Internal Revenue Code of 1986, as amended through
51.18 December 31, 1996, shall be in effect for taxable years
51.19 beginning after December 31, 1996.
51.20 The provisions of sections 202(a) and (b), 221(a), 225,
51.21 312, 313, 913(a), 934, 962, 1004, 1005, 1052, 1063, 1084(a) and
51.22 (c), 1089, 1112, 1171, 1204, 1271(a) and (b), 1305(a), 1306,
51.23 1307, 1308, 1309, 1501(b), 1502(b), 1504(a), 1505, 1527, 1528,
51.24 1530, 1601(d), (e), (f), and (i) and 1602(a), (b), (c), and (e)
51.25 of the Taxpayer Relief Act of 1997, Public Law Number
51.26 105-34, the provisions of sections 6004, 6005, 6012, 6013, 6015,
51.27 6016, 7002, and 7003 of the Internal Revenue Service
51.28 Restructuring and Reform Act of 1998, Public Law Number 105-206,
51.29 and the provisions of section 3001 of the Omnibus Consolidated
51.30 and Emergency Supplemental Appropriations Act, 1999, Public Law
51.31 Number 105-277, shall become effective at the time they become
51.32 effective for federal purposes.
51.33 The Internal Revenue Code of 1986, as amended through
51.34 December 31, 1997, shall be in effect for taxable years
51.35 beginning after December 31, 1997.
51.36 The provisions of sections 5002, 6009, 6011, and 7001 of
52.1 the Internal Revenue Service Restructuring and Reform Act of
52.2 1998, Public Law Number 105-206, the provisions of section 9010
52.3 of the Transportation Equity Act for the 21st Century, Public
52.4 Law Number 105-178, the provisions of sections 1004, 4002, and
52.5 5301 of the Omnibus Consolidation and Emergency Supplemental
52.6 Appropriations Act, 1999, Public Law Number 105-277, and the
52.7 provision of section 303 of the Ricky Ray Hemophilia Relief Fund
52.8 Act of 1998, Public Law Number 105-369, shall become effective
52.9 at the time they become effective for federal purposes.
52.10 The Internal Revenue Code of 1986, as amended through
52.11 December 31, 1998, shall be in effect for taxable years
52.12 beginning after December 31, 1998.
52.13 Except as otherwise provided, references to the Internal
52.14 Revenue Code in subdivisions 19a to 19g mean the code in effect
52.15 for purposes of determining net income for the applicable year.
52.16 Sec. 3. Minnesota Statutes 1998, section 290.01,
52.17 subdivision 19b, is amended to read:
52.18 Subd. 19b. [SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.] For
52.19 individuals, estates, and trusts, there shall be subtracted from
52.20 federal taxable income:
52.21 (1) interest income on obligations of any authority,
52.22 commission, or instrumentality of the United States to the
52.23 extent includable in taxable income for federal income tax
52.24 purposes but exempt from state income tax under the laws of the
52.25 United States;
52.26 (2) if included in federal taxable income, the amount of
52.27 any overpayment of income tax to Minnesota or to any other
52.28 state, for any previous taxable year, whether the amount is
52.29 received as a refund or as a credit to another taxable year's
52.30 income tax liability;
52.31 (3) the amount paid to others, less the credit allowed
52.32 under section 290.0674, not to exceed $1,625 for each dependent
52.33 in grades kindergarten to 6 and $2,500 for each dependent in
52.34 grades 7 to 12, for tuition, textbooks, and transportation of
52.35 each dependent in attending an elementary or secondary school
52.36 situated in Minnesota, North Dakota, South Dakota, Iowa, or
53.1 Wisconsin, wherein a resident of this state may legally fulfill
53.2 the state's compulsory attendance laws, which is not operated
53.3 for profit, and which adheres to the provisions of the Civil
53.4 Rights Act of 1964 and chapter 363. For the purposes of this
53.5 clause, "tuition" includes fees or tuition as defined in section
53.6 290.0674, subdivision 1, clause (1). As used in this clause,
53.7 "textbooks" includes books and other instructional materials and
53.8 equipment used in elementary and secondary schools in teaching
53.9 only those subjects legally and commonly taught in public
53.10 elementary and secondary schools in this state. Equipment
53.11 expenses qualifying for deduction includes expenses as defined
53.12 and limited in section 290.0674, subdivision 1, clause (3).
53.13 "Textbooks" does not include instructional books and materials
53.14 used in the teaching of religious tenets, doctrines, or worship,
53.15 the purpose of which is to instill such tenets, doctrines, or
53.16 worship, nor does it include books or materials for, or
53.17 transportation to, extracurricular activities including sporting
53.18 events, musical or dramatic events, speech activities, driver's
53.19 education, or similar programs;
53.20 (4) to the extent included in federal taxable income,
53.21 distributions from a qualified governmental pension plan, an
53.22 individual retirement account, simplified employee pension, or
53.23 qualified plan covering a self-employed person that represent a
53.24 return of contributions that were included in Minnesota gross
53.25 income in the taxable year for which the contributions were made
53.26 but were deducted or were not included in the computation of
53.27 federal adjusted gross income. The distribution shall be
53.28 allocated first to return of contributions until the
53.29 contributions included in Minnesota gross income have been
53.30 exhausted. This subtraction applies only to contributions made
53.31 in a taxable year prior to 1985;
53.32 (5) income as provided under section 290.0802;
53.33 (6) the amount of unrecovered accelerated cost recovery
53.34 system deductions allowed under subdivision 19g;
53.35 (7) to the extent included in federal adjusted gross
53.36 income, income realized on disposition of property exempt from
54.1 tax under section 290.491;
54.2 (8) to the extent not deducted in determining federal
54.3 taxable income, the amount paid for health insurance of
54.4 self-employed individuals as determined under section 162(l) of
54.5 the Internal Revenue Code, except that the 25 percent limit does
54.6 not apply. If the taxpayer deducted insurance payments under
54.7 section 213 of the Internal Revenue Code of 1986, the
54.8 subtraction under this clause must be reduced by the lesser of:
54.9 (i) the total itemized deductions allowed under section
54.10 63(d) of the Internal Revenue Code, less state, local, and
54.11 foreign income taxes deductible under section 164 of the
54.12 Internal Revenue Code and the standard deduction under section
54.13 63(c) of the Internal Revenue Code; or
54.14 (ii) the lesser of (A) the amount of insurance qualifying
54.15 as "medical care" under section 213(d) of the Internal Revenue
54.16 Code to the extent not deducted under section 162(1) of the
54.17 Internal Revenue Code or excluded from income or (B) the total
54.18 amount deductible for medical care under section 213(a);
54.19 (9) the exemption amount allowed under Laws 1995, chapter
54.20 255, article 3, section 2, subdivision 3;
54.21 (10) to the extent included in federal taxable income,
54.22 postservice benefits for youth community service under section
54.23 124D.42 for volunteer service under United States Code, title
54.24 42, section 5011(d), as amended;
54.25 (11) to the extent not subtracted under clause (1), the
54.26 amount of income or gain included in federal taxable income
54.27 under section 1366 of the Internal Revenue Code flowing from a
54.28 corporation that has a valid election in effect for the taxable
54.29 year under section 1362 of the Internal Revenue Code which is
54.30 not allowed to be an "S" corporation under section 290.9725;
54.31 (12) in the year stock of a corporation that had made a
54.32 valid election under section 1362 of the Internal Revenue Code
54.33 but was not an "S" corporation under section 290.9725 is sold or
54.34 disposed of in a transaction taxable under the Internal Revenue
54.35 Code, the amount of difference between the Minnesota basis of
54.36 the stock under subdivision 19f, paragraph (m), and the federal
55.1 basis if the Minnesota basis is higher than the shareholder's
55.2 federal basis; and
55.3 (13) an amount equal to an individual's, trust's, or
55.4 estate's net federal income tax liability for the tax year that
55.5 is attributable to items of income, expense, gain, loss, or
55.6 credits federally flowing to the taxpayer in the tax year from a
55.7 corporation, having a valid election in effect for federal tax
55.8 purposes under section 1362 of the Internal Revenue Code but not
55.9 treated as an "S" corporation for state tax purposes under
55.10 section 290.9725.
55.11 Sec. 4. Minnesota Statutes 1998, section 290.01,
55.12 subdivision 31, is amended to read:
55.13 Subd. 31. [INTERNAL REVENUE CODE.] Unless specifically
55.14 defined otherwise, "Internal Revenue Code" means the Internal
55.15 Revenue Code of 1986, as amended through December 31, 1997 1998.
55.16 Sec. 5. Minnesota Statutes 1998, section 290A.03,
55.17 subdivision 15, is amended to read:
55.18 Subd. 15. [INTERNAL REVENUE CODE.] "Internal Revenue Code"
55.19 means the Internal Revenue Code of 1986, as amended through
55.20 December 31, 1997 1998.
55.21 Sec. 6. Minnesota Statutes 1998, section 291.005,
55.22 subdivision 1, is amended to read:
55.23 Subdivision 1. Unless the context otherwise clearly
55.24 requires, the following terms used in this chapter shall have
55.25 the following meanings:
55.26 (1) "Federal gross estate" means the gross estate of a
55.27 decedent as valued and otherwise determined for federal estate
55.28 tax purposes by federal taxing authorities pursuant to the
55.29 provisions of the Internal Revenue Code.
55.30 (2) "Minnesota gross estate" means the federal gross estate
55.31 of a decedent after (a) excluding therefrom any property
55.32 included therein which has its situs outside Minnesota and (b)
55.33 including therein any property omitted from the federal gross
55.34 estate which is includable therein, has its situs in Minnesota,
55.35 and was not disclosed to federal taxing authorities.
55.36 (3) "Personal representative" means the executor,
56.1 administrator or other person appointed by the court to
56.2 administer and dispose of the property of the decedent. If
56.3 there is no executor, administrator or other person appointed,
56.4 qualified, and acting within this state, then any person in
56.5 actual or constructive possession of any property having a situs
56.6 in this state which is included in the federal gross estate of
56.7 the decedent shall be deemed to be a personal representative to
56.8 the extent of the property and the Minnesota estate tax due with
56.9 respect to the property.
56.10 (4) "Resident decedent" means an individual whose domicile
56.11 at the time of death was in Minnesota.
56.12 (5) "Nonresident decedent" means an individual whose
56.13 domicile at the time of death was not in Minnesota.
56.14 (6) "Situs of property" means, with respect to real
56.15 property, the state or country in which it is located; with
56.16 respect to tangible personal property, the state or country in
56.17 which it was normally kept or located at the time of the
56.18 decedent's death; and with respect to intangible personal
56.19 property, the state or country in which the decedent was
56.20 domiciled at death.
56.21 (7) "Commissioner" means the commissioner of revenue or any
56.22 person to whom the commissioner has delegated functions under
56.23 this chapter.
56.24 (8) "Internal Revenue Code" means the United States
56.25 Internal Revenue Code of 1986, as amended through December 31,
56.26 1997 1998.
56.27 Sec. 7. [EFFECTIVE DATES.]
56.28 Sections 1, 4, 5, and 6 are effective at the same time
56.29 federal changes made by the Internal Revenue Service
56.30 Restructuring and Reform Act of 1998, Public Law Number 105-206
56.31 and the Omnibus Consolidation and Emergency Supplemental
56.32 Appropriations Act, 1999, Public Law Number 105-277 which are
56.33 incorporated into Minnesota Statutes, chapters 289A, 290, 290A,
56.34 and 291 by these sections become effective for federal tax
56.35 purposes. Section 3 is effective for tax years beginning after
56.36 December 31, 1998.
57.1 ARTICLE 4
57.2 SALES AND USE TAXES
57.3 Section 1. Minnesota Statutes 1998, section 289A.18,
57.4 subdivision 4, is amended to read:
57.5 Subd. 4. [SALES AND USE TAX RETURNS.] (a) Sales and use
57.6 tax returns must be filed on or before the 20th day of the month
57.7 following the close of the preceding reporting period, except
57.8 that annual use tax returns provided for under section 289A.11,
57.9 subdivision 1, must be filed by April 15 following the close of
57.10 the calendar year, in the case of individuals. Annual use tax
57.11 returns of businesses, including sole proprietorships, and
57.12 annual sales tax returns must be filed by February 5 following
57.13 the close of the calendar year.
57.14 (b) Except for the return for the June reporting period,
57.15 which is due on the following August 25, returns filed by
57.16 retailers required to remit liabilities by means of funds
57.17 transfer under section 289A.20, subdivision 4, paragraph (d),
57.18 are due on or before the 25th day of the month following the
57.19 close of the preceding reporting period.
57.20 (c) If a retailer has an average sales and use tax
57.21 liability, including local sales and use taxes administered by
57.22 the commissioner, equal to or less than $500 per month in any
57.23 quarter of a calendar year, and has substantially complied with
57.24 the tax laws during the preceding four calendar quarters, the
57.25 retailer may request authorization to file and pay the taxes
57.26 quarterly in subsequent calendar quarters. The authorization
57.27 remains in effect during the period in which the retailer's
57.28 quarterly returns reflect sales and use tax liabilities of less
57.29 than $1,500 and there is continued compliance with state tax
57.30 laws.
57.31 (d) If a retailer has an average sales and use tax
57.32 liability, including local sales and use taxes administered by
57.33 the commissioner, equal to or less than $100 per month during a
57.34 calendar year, and has substantially complied with the tax laws
57.35 during that period, the retailer may request authorization to
57.36 file and pay the taxes annually in subsequent years. The
58.1 authorization remains in effect during the period in which the
58.2 retailer's annual returns reflect sales and use tax liabilities
58.3 of less than $1,200 and there is continued compliance with state
58.4 tax laws.
58.5 (e) The commissioner may also grant quarterly or annual
58.6 filing and payment authorizations to retailers if the
58.7 commissioner concludes that the retailers' future tax
58.8 liabilities will be less than the monthly totals identified in
58.9 paragraphs (c) and (d). An authorization granted under this
58.10 paragraph is subject to the same conditions as an authorization
58.11 granted under paragraphs (c) and (d).
58.12 (f) A taxpayer who is a materials supplier may report gross
58.13 receipts either on:
58.14 (1) the cash basis as the consideration is received; or
58.15 (2) the accrual basis as sales are made.
58.16 As used in this paragraph, "materials supplier" means a person
58.17 who provides materials for the improvement of real property; who
58.18 is primarily engaged in the sale of lumber and building
58.19 materials-related products to owners, contractors,
58.20 subcontractors, repairers, or consumers; who is authorized to
58.21 file a mechanics lien upon real property and improvements under
58.22 chapter 514; and who files with the commissioner an election to
58.23 file sales and use tax returns on the basis of this paragraph.
58.24 Sec. 2. Minnesota Statutes 1998, section 289A.20,
58.25 subdivision 4, is amended to read:
58.26 Subd. 4. [SALES AND USE TAX.] (a) The taxes imposed by
58.27 chapter 297A are due and payable to the commissioner monthly on
58.28 or before the 20th day of the month following the month in which
58.29 the taxable event occurred, or following another reporting
58.30 period as the commissioner prescribes or as allowed under
58.31 section 289A.18, subdivision 4, paragraph (f), except that use
58.32 taxes due on an annual use tax return as provided under section
58.33 289A.11, subdivision 1, are payable by April 15 following the
58.34 close of the calendar year.
58.35 (b) A vendor having a liability of $120,000 or more during
58.36 a fiscal year ending June 30 must remit the June liability for
59.1 the next year in the following manner:
59.2 (1) Two business days before June 30 of the year, the
59.3 vendor must remit 75 percent of the estimated June liability to
59.4 the commissioner.
59.5 (2) On or before August 14 of the year, the vendor must pay
59.6 any additional amount of tax not remitted in June.
59.7 (c) A vendor having a liability of $120,000 or more during
59.8 a fiscal year ending June 30 must remit all liabilities in the
59.9 subsequent calendar year by means of a funds transfer as defined
59.10 in section 336.4A-104, paragraph (a). The funds transfer
59.11 payment date, as defined in section 336.4A-401, must be on or
59.12 before the 14th day of the month following the month in which
59.13 the taxable event occurred, or on or before the 14th day of the
59.14 month following the month in which the sale is reported under
59.15 section 289A.18, subdivision 4, except for 75 percent of the
59.16 estimated June liability, which is due two business days before
59.17 June 30. The remaining amount of the June liability is due on
59.18 August 14. If the date the tax is due is not a funds transfer
59.19 business day, as defined in section 336.4A-105, paragraph (a),
59.20 clause (4), the payment date must be on or before the funds
59.21 transfer business day next following the date the tax is due.
59.22 (d) If the vendor required to remit by electronic funds
59.23 transfer as provided in paragraph (c) is unable due to
59.24 reasonable cause to determine the actual sales and use tax due
59.25 on or before the due date for payment, the vendor may remit an
59.26 estimate of the tax owed using one of the following options:
59.27 (1) 100 percent of the tax reported on the previous month's
59.28 sales and use tax return;
59.29 (2) 100 percent of the tax reported on the sales and use
59.30 tax return for the same month in the previous calendar year; or
59.31 (3) 95 percent of the actual tax due.
59.32 Any additional amount of tax that is not remitted on or
59.33 before the due date for payment, must be remitted with the
59.34 return. If a vendor fails to remit the actual liability or does
59.35 not remit using one of the estimate options by the due date for
59.36 payment, the vendor must remit actual liability as provided in
60.1 paragraph (c) in all subsequent periods. This paragraph does
60.2 not apply to the June sales and use tax liability.
60.3 Sec. 3. Minnesota Statutes 1998, section 289A.56,
60.4 subdivision 4, is amended to read:
60.5 Subd. 4. [CAPITAL EQUIPMENT REFUNDS; REFUNDS TO
60.6 PURCHASERS.] Notwithstanding subdivision 3, for refunds payable
60.7 under section 297A.15, subdivision 5, interest is computed from
60.8 the date the refund claim is filed with the commissioner. For
60.9 refunds payable under section 289A.50, subdivision 2a, interest
60.10 is computed from the 20th day of the month following the month
60.11 of the invoice date for the purchase which is the subject of the
60.12 refund, if the refund claim includes a detailed schedule of
60.13 purchases made during each of the periods in the claim. If the
60.14 refund claim submitted does not contain a schedule reflecting
60.15 purchases made in each period, interest is computed from the
60.16 date the claim was filed.
60.17 Sec. 4. Minnesota Statutes 1998, section 297A.25,
60.18 subdivision 9, is amended to read:
60.19 Subd. 9. [MATERIALS CONSUMED IN PRODUCTION.] The gross
60.20 receipts from the sale of and the storage, use, or consumption
60.21 of all materials, including chemicals, fuels, petroleum
60.22 products, lubricants, packaging materials, including returnable
60.23 containers used in packaging food and beverage products, feeds,
60.24 seeds, fertilizers, electricity, gas and steam, used or consumed
60.25 in agricultural or industrial production of personal property
60.26 intended to be sold ultimately at retail, whether or not the
60.27 item so used becomes an ingredient or constituent part of the
60.28 property produced are exempt. Seeds, trees, fertilizers, and
60.29 herbicides purchased for use by farmers in the Conservation
60.30 Reserve Program under United States Code, title 16, section
60.31 590h, as amended through December 31, 1991, the Integrated Farm
60.32 Management Program under section 1627 of Public Law Number
60.33 101-624, the Wheat and Feed Grain Programs under sections 301 to
60.34 305 and 401 to 405 of Public Law Number 101-624, and the
60.35 conservation reserve program under sections 103F.505 to
60.36 103F.531, are included in this exemption. Sales to a
61.1 veterinarian of materials used or consumed in the care,
61.2 medication, and treatment of horses and agricultural production
61.3 animals are exempt under this subdivision. Chemicals used for
61.4 cleaning food processing machinery and equipment are included in
61.5 this exemption. Materials, including chemicals, fuels, and
61.6 electricity purchased by persons engaged in agricultural or
61.7 industrial production to treat waste generated as a result of
61.8 the production process are included in this exemption. Such
61.9 production shall include, but is not limited to, research,
61.10 development, design or production of any tangible personal
61.11 property, manufacturing, processing (other than by restaurants
61.12 and consumers) of agricultural products whether vegetable or
61.13 animal, commercial fishing, refining, smelting, reducing,
61.14 brewing, distilling, printing, mining, quarrying, lumbering,
61.15 generating electricity and the production of road building
61.16 materials. Such production shall not include painting,
61.17 cleaning, repairing or similar processing of property except as
61.18 part of the original manufacturing process. Machinery,
61.19 equipment, implements, tools, accessories, appliances,
61.20 contrivances, furniture and fixtures, used in such production
61.21 and fuel, electricity, gas or steam used for space heating or
61.22 lighting, are not included within this exemption; however,
61.23 accessory tools, equipment and other short lived items, which
61.24 are separate detachable units used in producing a direct effect
61.25 upon the product, where such items have an ordinary useful life
61.26 of less than 12 months, are included within the exemption
61.27 provided herein. The following materials, tools, and equipment
61.28 used in metalcasting are exempt under this subdivision:
61.29 crucibles, thermocouple protection sheaths and tubes, stalk
61.30 tubes, refractory materials, molten metal filters and filter
61.31 boxes, and degassing lances. Electricity used to make snow for
61.32 outdoor use for ski hills, ski slopes, or ski trails is included
61.33 in this exemption. Petroleum and special fuels used in
61.34 producing or generating power for propelling ready-mixed
61.35 concrete trucks on the public highways of this state are not
61.36 included in this exemption.
62.1 Sec. 5. Minnesota Statutes 1998, section 297A.25,
62.2 subdivision 63, is amended to read:
62.3 Subd. 63. [HOSPITALS AND OUTPATIENT SURGICAL CENTERS.] (a)
62.4 The gross receipts from the sale of tangible personal property
62.5 to, and the storage, use, or consumption of such property by, a
62.6 hospital are exempt, if the property purchased is to be used in
62.7 providing hospital services to human beings. For purposes of
62.8 this subdivision, "hospital" means a hospital organized and
62.9 operated for charitable purposes within the meaning of section
62.10 501(c)(3) of the Internal Revenue Code of 1986, as amended, and
62.11 licensed under chapter 144 or by any other jurisdiction. For
62.12 purposes of this subdivision, "hospital services" are means
62.13 services authorized or required to be performed by
62.14 a "hospital" hospital under chapter 144 and regulations rules
62.15 thereunder or under the applicable licensure law of any other
62.16 jurisdiction. This exemption does
62.17 (b) The gross receipts from the sale of tangible personal
62.18 property to, and the storage, use, or consumption of such
62.19 property by, an outpatient surgical center are exempt, if the
62.20 property purchased is to be used in providing outpatient
62.21 surgical services to human beings. For purposes of this
62.22 subdivision, "outpatient surgical center" means an outpatient
62.23 surgical center organized and operated for charitable purposes
62.24 within the meaning of section 501(c)(3) of the Internal Revenue
62.25 Code of 1986, as amended, and licensed under chapter 144 or by
62.26 any other jurisdiction. For the purposes of this subdivision,
62.27 "outpatient surgical services" means: (1) services authorized
62.28 or required to be performed by an outpatient surgical center
62.29 under chapter 144 and rules thereunder or under the applicable
62.30 licensure law of any other jurisdiction; and (2) urgent care.
62.31 For purposes of this subdivision, "urgent care" means health
62.32 services furnished to a person whose medical condition is
62.33 sufficiently acute to require treatment unavailable through, or
62.34 inappropriate to be provided by, a clinic or physician's office,
62.35 but not so acute as to require treatment in a hospital emergency
62.36 room.
63.1 (c) These exemptions do not apply to purchases made by a
63.2 clinic, physician's office, or any other medical facility not
63.3 operating as a hospital or outpatient surgical center, even
63.4 though the clinic, office, or facility may be owned and operated
63.5 by a hospital or outpatient surgical center. Sales exempted by
63.6 this subdivision do not include sales under section 297A.01,
63.7 subdivision 3, paragraphs (c) and (e). This exemption
63.8 does These exemptions do not apply to building, construction, or
63.9 reconstruction materials purchased by a contractor or a
63.10 subcontractor as a part of a lump-sum contract or similar type
63.11 of contract with a guaranteed maximum price covering both labor
63.12 and materials for use in the construction, alteration, or repair
63.13 of a hospital or outpatient surgical center. This exemption
63.14 does These exemptions do not apply to construction materials to
63.15 be used in constructing buildings or facilities which will not
63.16 be used principally by a hospital or outpatient surgical
63.17 center. This exemption does These exemptions do not apply to
63.18 the leasing of a motor vehicle as defined in section 297B.01,
63.19 subdivision 5.
63.20 Sec. 6. Minnesota Statutes 1998, section 297A.25,
63.21 subdivision 73, is amended to read:
63.22 Subd. 73. [BIOSOLIDS PROCESSING EQUIPMENT.] (a) The gross
63.23 receipts from the sale of and the storage, use, or consumption
63.24 of equipment designed to process, dewater, and recycle biosolids
63.25 for wastewater treatment facilities of political subdivisions,
63.26 and materials incidental to installation of that equipment, are
63.27 exempt.
63.28 (b) The gross receipts from the sale of and the storage,
63.29 use, or consumption of materials used to construct buildings to
63.30 house the equipment in paragraph (a) are exempt if purchased
63.31 after June 30, 1998, and before July 1, 2001.
63.32 Sec. 7. Minnesota Statutes 1998, section 297A.25, is
63.33 amended by adding a subdivision to read:
63.34 Subd. 79. [PRIZES.] The gross receipts from the sales of
63.35 tangible personal property which will be given as prizes to
63.36 players in games of skill or chance conducted at events such as
64.1 community festivals, fairs, and carnivals lasting less than six
64.2 days are exempt. This exemption shall not apply to property
64.3 awarded as prizes in connection with lawful gambling as defined
64.4 in section 349.12 or the state lottery.
64.5 Sec. 8. Minnesota Statutes 1998, section 297A.25, is
64.6 amended by adding a subdivision to read:
64.7 Subd. 80. [CONSTRUCTION MATERIALS AND SUPPLIES;
64.8 AGRICULTURAL PROCESSING FACILITY.] Purchases of construction
64.9 materials, supplies, and equipment are exempt from the sales and
64.10 use taxes imposed under this chapter, regardless of whether
64.11 purchased by the owner or a contractor, subcontractor, or
64.12 builder, if:
64.13 (1) the materials and supplies are used or consumed in, and
64.14 the equipment is incorporated into, the expansion, remodeling,
64.15 or improvement of a facility used for cattle slaughtering;
64.16 (2) the cost of the project is expected to exceed
64.17 $15,000,000;
64.18 (3) the expansion, remodeling, or improvement of the
64.19 facility will be used to fabricate beef;
64.20 (4) the number of jobs at the facility are expected to
64.21 increase by at least 150 when the project is completed; and
64.22 (5) the project is expected to be completed by December 31,
64.23 2001.
64.24 Sec. 9. Minnesota Statutes 1998, section 297A.25, is
64.25 amended by adding a subdivision to read:
64.26 Subd. 82. [TELEVISION COMMERCIALS.] The gross receipts
64.27 from the sale of and storage, use, or consumption of tangible
64.28 personal property which is primarily used or consumed in the
64.29 preproduction, production, or postproduction of any television
64.30 commercial and any such commercial, regardless of the medium in
64.31 which it is transferred, are exempt. "Preproduction" and
64.32 "production" include but are not limited to all activities
64.33 related to the preparation for shooting and the shooting of
64.34 television commercials, including film processing. Equipment
64.35 rented for the preproduction and production activities is
64.36 exempt. "Postproduction" includes but is not limited to all
65.1 activities related to the finishing and duplication of
65.2 television commercials. This exemption does not apply to
65.3 tangible personal property used primarily in administration,
65.4 general management, or marketing. Machinery and equipment
65.5 purchased for use in producing such commercials and fuel,
65.6 electricity, gas, or steam used for space heating or lighting
65.7 are not exempt under this subdivision.
65.8 Sec. 10. Minnesota Statutes 1998, section 297A.25, is
65.9 amended by adding a subdivision to read:
65.10 Subd. 83. [CONSTRUCTION MATERIALS AND EQUIPMENT; BIOMASS
65.11 ELECTRICAL GENERATING FACILITY.] The gross receipts from the
65.12 purchases of materials and supplies used or consumed in, and
65.13 equipment incorporated into, the construction, improvement, or
65.14 expansion of a facility using biomass to generate electricity
65.15 are exempt from the sales and use taxes imposed under this
65.16 chapter, regardless of whether purchased by the owner or a
65.17 contractor, subcontractor, or builder, if:
65.18 (1) the facility exclusively utilizes residue wood,
65.19 sawdust, bark, chipped wood, or brush to generate electricity;
65.20 (2) the facility utilizes a reciprocated grate combination
65.21 system; and
65.22 (3) the total gross capacity of the facility is 15 to 21
65.23 megawatts.
65.24 Sec. 11. Minnesota Statutes 1998, section 297A.25, is
65.25 amended by adding a subdivision to read:
65.26 Subd. 84. [WASTE MANAGEMENT CONTAINERS AND
65.27 COMPACTORS.] The gross receipts from the sale of and storage,
65.28 use, or consumption of compactors and waste collection
65.29 containers are exempt from the sales and use taxes imposed under
65.30 this chapter provided that they are purchased by a waste
65.31 management service provider, and are used in providing waste
65.32 management services as defined in section 297H.01, subdivision
65.33 12. A waste management service provider that does not remit tax
65.34 on customer charges or lease or rental payments for compactors
65.35 and waste collection containers under chapter 297H is ineligible
65.36 for this exemption.
66.1 Sec. 12. Minnesota Statutes 1998, section 297A.48, is
66.2 amended by adding a subdivision to read:
66.3 Subd. 1a. [RULES FOR ADOPTION, USE, TERMINATION.] (a)
66.4 Imposition of a local sales tax is subject to approval by voters
66.5 of the political subdivision at a general election.
66.6 (b) The proceeds of the tax must be dedicated exclusively
66.7 to payment of the cost of a specific capital improvement which
66.8 is designated at least 90 days before the referendum on
66.9 imposition of the tax is conducted.
66.10 (c) The tax must terminate after the improvement designated
66.11 under paragraph (b) has been completed.
66.12 (d) After a sales tax imposed by a political subdivision
66.13 has expired or been terminated, the political subdivision is
66.14 prohibited from imposing a local sales tax for a period of one
66.15 year. Notwithstanding subdivision 10, this paragraph applies to
66.16 all local sales taxes in effect at the time of or imposed after
66.17 the date of enactment of this section.
66.18 Sec. 13. Minnesota Statutes 1998, section 297A.48, is
66.19 amended by adding a subdivision to read:
66.20 Subd. 7a. [USE OF ZIP CODE IN DETERMINING LOCATION OF
66.21 SALE.] To determine whether to impose the local tax, the
66.22 retailer may use zip codes if the zip code area is entirely
66.23 within the political subdivision. When a zip code area is not
66.24 entirely within a political subdivision, the retailer shall not
66.25 collect the local tax if the purchaser notified the retailer
66.26 that their delivery address is outside of the political
66.27 subdivision, unless the retailer verifies that the delivery
66.28 address is in the political subdivision using a means other than
66.29 the zip code. Notwithstanding subdivision 10, this subdivision
66.30 applies to all local sales taxes without regard to the date of
66.31 authorization.
66.32 Sec. 14. Laws 1998, chapter 389, article 8, section 44,
66.33 subdivision 5, is amended to read:
66.34 Subd. 5. [USE OF REVENUES.] (a) Revenues received from the
66.35 taxes authorized by subdivisions 1 to 4 must be used to pay for
66.36 the cost of collecting the taxes; to pay all or part of the
67.1 capital or administrative cost of the acquisition, construction,
67.2 and improvement of the Central Minnesota Events Center and
67.3 related on-site and off-site improvements; and to pay for the
67.4 operating deficit, if any, in the first five years of operation
67.5 of the facility. Authorized expenses related to acquisition,
67.6 construction, and improvement of the center include, but are not
67.7 limited to, acquiring property, paying construction and
67.8 operating expenses related to the development of the facility,
67.9 and securing and paying debt service on bonds or other
67.10 obligations issued to finance construction or improvement of the
67.11 authorized facility.
67.12 (b) In addition, if the revenues collected from a tax
67.13 imposed in subdivisions 1 to 4 are greater than the amount
67.14 needed to meet obligations under paragraph (a) in any year, the
67.15 surplus may be returned to the cities in a manner agreed upon by
67.16 the participating cities under this section, to be used by the
67.17 cities for projects of regional significance, limited to the
67.18 acquisition and improvement of park land and open space; the
67.19 purchase, renovation, and construction of public buildings and
67.20 land primarily used for the arts, libraries, and community
67.21 centers; and for debt service on bonds issued for these
67.22 purposes. The amount of surplus revenues raised by a tax will
67.23 be determined either as provided for by an applicable joint
67.24 powers agreement or by a governing entity in charge of
67.25 administering the project in paragraph (a).
67.26 (c) If start of the Central Minnesota Events Center under
67.27 paragraph (a) is delayed, the cities may still impose the tax,
67.28 and use a portion of the revenue to fund the projects under
67.29 paragraph (b), provided that revenues are reserved to pay future
67.30 costs of the construction of the events center in paragraph (a)
67.31 as provided by a joint powers agreement or by a governing entity
67.32 in charge of administering the project. If a decision is made
67.33 not to proceed with the event center under paragraph (a) or
67.34 construction of the event center has not begun by December 31,
67.35 2007, the funds in the reserve account shall be distributed to
67.36 the cities based on the joint powers agreement to pay for other
68.1 projects permitted under paragraph (b). All revenues raised
68.2 from these taxes after December 31, 2008, must be used
68.3 exclusively to pay off bonds for the event center project under
68.4 paragraph (a) and to pay off bonds issued under subdivision 6.
68.5 Sec. 15. Laws 1998, chapter 389, article 8, section 44,
68.6 subdivision 6, is amended to read:
68.7 Subd. 6. [BONDING AUTHORITY.] (a) The cities named in
68.8 subdivision 1 may issue bonds under Minnesota Statutes, chapter
68.9 475, to finance the acquisition, construction, and improvement
68.10 of the Central Minnesota Events Center. An election to approve
68.11 the bonds under Minnesota Statutes, section 475.58, may be held
68.12 in combination with the election to authorize imposition of the
68.13 tax under subdivision 1. Whether to permit imposition of the
68.14 tax and issuance of bonds may be posed to the voters as a single
68.15 question. The question must state that the sales tax revenues
68.16 are pledged to pay the bonds, but that the bonds are general
68.17 obligations and will be guaranteed by the city's property taxes.
68.18 (b) The issuance of bonds under this subdivision is not
68.19 subject to Minnesota Statutes, section 275.60.
68.20 (c) The bonds are not included in computing any debt
68.21 limitation applicable to the city, and the levy of taxes under
68.22 Minnesota Statutes, section 475.61, to pay principal of and
68.23 interest on the bonds is not subject to any levy limitation.
68.24 The aggregate principal amount of bonds issued by all cities
68.25 named in subdivision 1, plus the aggregate of the taxes used
68.26 directly to pay eligible capital expenditures and improvements
68.27 for the Central Minnesota Events Center, may not exceed
68.28 $50,000,000, plus an amount equal to the costs related to
68.29 issuance of the bonds, less any amount made available to the
68.30 cities for the project described in subdivision 5 under the
68.31 capital expenditure legislation adopted during the 1998 session
68.32 of the legislature.
68.33 (d) The taxes may be pledged to and used for the payment of
68.34 the bonds and any bonds issued to refund them, only if the bonds
68.35 and any refunding bonds are general obligations of the city.
68.36 (e) The cities named in subdivision 1 may issue bonds for
69.1 the projects listed in subdivision 5, paragraph (b), under
69.2 regular bonding authority. Bonds for these projects, to be paid
69.3 from tax revenues under this section, may not be issued after
69.4 December 31, 2008.
69.5 Sec. 16. Laws 1998, chapter 389, article 8, section 44,
69.6 subdivision 7, as amended by Laws 1998, chapter 408, section 20,
69.7 is amended to read:
69.8 Subd. 7. [TERMINATION OF TAXES.] The taxes imposed by each
69.9 city under subdivisions 1 to 4 expire at the earlier of 30 years
69.10 or when sufficient funds have been received from the taxes to
69.11 finance the obligations under subdivisions 5, paragraph (a), and
69.12 6, and to prepay or retire at maturity the principal, interest,
69.13 and premium due on the original bonds issued for the initial
69.14 acquisition, construction, and improvement of the Central
69.15 Minnesota Events Center as determined under an applicable joint
69.16 powers agreement or by a governing entity in charge of
69.17 administering the project. Any funds remaining after completion
69.18 of the project and retirement or redemption of the bonds may be
69.19 placed in the general funds of the cities imposing the taxes.
69.20 The taxes imposed by a city under this section may expire at an
69.21 earlier time by city ordinance, if authorized under the
69.22 applicable joint powers agreement or by the governing entity in
69.23 charge of administering the project.
69.24 If the cities that pass a referendum required under
69.25 subdivision 6 1 determine that the revenues raised from the sum
69.26 of all the taxes authorized by referendum under this subdivision
69.27 section will not be sufficient to fund the project in
69.28 subdivision 5, paragraph (a), none of the authorized taxes may
69.29 be imposed.
69.30 If the taxes are imposed, as allowed under subdivision 5,
69.31 paragraph (c), and the cities determine at a later date that
69.32 there are not sufficient funds to fund the Central Minnesota
69.33 Events Center under subdivision 5, paragraph (a), or the funding
69.34 for the event center has not been determined by December 31,
69.35 2008, the taxes will be terminated as soon as sufficient
69.36 revenues are raised to prepay or retire at maturity the
70.1 principal, interest, and premium due on bonds issued under
70.2 subdivision 6, paragraph (e).
70.3 Sec. 17. [CITY OF NEW ULM; TAXES AUTHORIZED.]
70.4 Subdivision 1. [SALES AND USE TAX.] Notwithstanding
70.5 Minnesota Statutes, section 477A.016, or any other provision of
70.6 law, ordinance, or city charter, if approved by the city voters
70.7 at the first municipal general election held after the date of
70.8 final enactment of this act, the city of New Ulm may impose by
70.9 ordinance a sales and use tax of up to one-half of one percent
70.10 for the purposes specified in subdivision 3. The provisions of
70.11 Minnesota Statutes, section 297A.48, govern the imposition,
70.12 administration, collection, and enforcement of the tax
70.13 authorized under this subdivision.
70.14 Subd. 2. [EXCISE TAX AUTHORIZED.] Notwithstanding
70.15 Minnesota Statutes, section 477A.016, or any other provision of
70.16 law, ordinance, or city charter, the city of New Ulm may impose
70.17 by ordinance, for the purposes specified in subdivision 3, an
70.18 excise tax of up to $20 per motor vehicle, as defined by
70.19 ordinance, purchased or acquired from any person engaged within
70.20 the city in the business of selling motor vehicles at retail.
70.21 Subd. 3. [USE OF REVENUES.] Revenues received from taxes
70.22 authorized by subdivisions 1 and 2 must be used by the city to
70.23 pay the cost of collecting the taxes and to pay for construction
70.24 and improvement of a civic and community center and recreational
70.25 facilities to serve all ages, including seniors and youth.
70.26 Authorized expenses include, but are not limited to, acquiring
70.27 property, paying construction and operating expenses related to
70.28 the development of an authorized facility, funding facilities
70.29 replacement reserves, and paying debt service on bonds or other
70.30 obligations issued to finance the construction or expansion of
70.31 an authorized facility. The capital expenses for all projects
70.32 authorized under this subdivision that may be paid with these
70.33 taxes are limited to $9,000,000, plus an amount equal to the
70.34 costs related to issuance of the bonds and funding facilities
70.35 replacement reserves.
70.36 Subd. 4. [BONDING AUTHORITY.] (a) The city may issue bonds
71.1 under Minnesota Statutes, chapter 475, to finance the capital
71.2 expenditure and improvement projects. An election to approve
71.3 the bonds under Minnesota Statutes, section 475.58, may be held
71.4 in combination with the election to authorize imposition of the
71.5 tax under subdivision 1. Whether to permit imposition of the
71.6 tax and issuance of bonds may be posed to the voters as a single
71.7 question. The question must state that the sales tax revenues
71.8 are pledged to pay the bonds, but that the bonds are general
71.9 obligations and will be guaranteed by the city's property taxes.
71.10 (b) The issuance of bonds under this subdivision is not
71.11 subject to Minnesota Statutes, sections 275.60 and 275.61.
71.12 (c) The bonds are not included in computing any debt
71.13 limitation applicable to the city, and the levy of taxes under
71.14 Minnesota Statutes, section 475.61, to pay principal of and
71.15 interest on the bonds is not subject to any levy limitation.
71.16 The aggregate principal amount of bonds, plus the aggregate of
71.17 the taxes used directly to pay eligible capital expenditures and
71.18 improvements may not exceed $9,000,000, plus an amount equal to
71.19 the costs related to issuance of the bonds.
71.20 (d) The taxes may be pledged to and used for the payment of
71.21 the bonds and any bonds issued to refund them, only if the bonds
71.22 and any refunding bonds are general obligations of the city.
71.23 Subd. 5. [TERMINATION OF TAXES.] The taxes imposed under
71.24 subdivisions 1 and 2 expire when the city council determines
71.25 that sufficient funds have been received from the taxes to
71.26 finance the capital and administrative costs for the
71.27 acquisition, construction, and improvement of facilities
71.28 described in subdivision 3, and to prepay or retire at maturity
71.29 the principal, interest, and premium due on any bonds issued for
71.30 the facilities under subdivision 4. Any funds remaining after
71.31 completion of the project and retirement or redemption of the
71.32 bonds may be placed in the general fund of the city. The taxes
71.33 imposed under subdivisions 1 and 2 may expire at an earlier time
71.34 if the city so determines by ordinance.
71.35 Subd. 6. [EFFECTIVE DATE.] This section is effective the
71.36 day after compliance by the governing body of the city of New
72.1 Ulm with Minnesota Statutes, section 645.021, subdivision 3.
72.2 Sec. 18. [CITY OF PROCTOR; TAXES AUTHORIZED.]
72.3 Subdivision 1. [SALES AND USE TAX.] Notwithstanding
72.4 Minnesota Statutes, section 297A.48, subdivision 1a, 477A.016,
72.5 or any other provision of law, ordinance, or city charter, if
72.6 approved by the city voters at the first municipal general
72.7 election held after the date of final enactment of this act or
72.8 at a special election held November 2, 1999, the city of Proctor
72.9 may impose by ordinance a sales and use tax of up to one-half of
72.10 one percent for the purposes specified in subdivision 3. The
72.11 provisions of Minnesota Statutes, section 297A.48, govern the
72.12 imposition, administration, collection, and enforcement of the
72.13 tax authorized under this subdivision.
72.14 Subd. 2. [EXCISE TAX AUTHORIZED.] Notwithstanding
72.15 Minnesota Statutes, section 477A.016, or any other provision of
72.16 law, ordinance, or city charter, the city of Proctor may impose
72.17 by ordinance, for the purposes specified in subdivision 3, an
72.18 excise tax of up to $20 per motor vehicle, as defined by
72.19 ordinance, purchased or acquired from any person engaged within
72.20 the city in the business of selling motor vehicles at retail.
72.21 Subd. 3. [USE OF REVENUES.] Revenues received from taxes
72.22 authorized by subdivisions 1 and 2 must be used by the city to
72.23 pay the cost of collecting the taxes and to pay for construction
72.24 and improvement of the following city facilities:
72.25 (1) streets; and
72.26 (2) constructing and equipping the Proctor community
72.27 activity center.
72.28 Authorized expenses include, but are not limited to,
72.29 acquiring property, paying construction and operating expenses
72.30 related to the development of an authorized facility, and paying
72.31 debt service on bonds or other obligations, including lease
72.32 obligations, issued to finance the construction, expansion, or
72.33 improvement of an authorized facility. The capital expenses for
72.34 all projects authorized under this paragraph that may be paid
72.35 with these taxes is limited to $3,600,000, plus an amount equal
72.36 to the costs related to issuance of the bonds.
73.1 Subd. 4. [BONDING AUTHORITY.] (a) The city may issue bonds
73.2 under Minnesota Statutes, chapter 475, to finance the capital
73.3 expenditure and improvement projects described in subdivision
73.4 3. An election to approve the bonds under Minnesota Statutes,
73.5 section 475.58, is not required.
73.6 (b) The issuance of bonds under this subdivision is not
73.7 subject to Minnesota Statutes, sections 275.60 and 279.61.
73.8 (c) The bonds are not included in computing any debt
73.9 limitation applicable to the city, and the levy of taxes under
73.10 Minnesota Statutes, section 475.61, to pay principal of and
73.11 interest on the bonds is not subject to any levy limitation.
73.12 (d) The aggregate principal amount of bonds, plus the
73.13 aggregate of the taxes used directly to pay eligible capital
73.14 expenditures and improvements, may not exceed $3,600,000, plus
73.15 an amount equal to the costs related to issuance of the bonds,
73.16 including interest on the bonds.
73.17 (e) The sales and use and excise taxes authorized in this
73.18 section may be pledged to and used for the payment of the bonds
73.19 and any bonds issued to refund them only if the bonds and any
73.20 refunding bonds are general obligations of the city.
73.21 Subd. 5. [TERMINATION OF TAXES.] The taxes imposed under
73.22 subdivisions 1 and 2 expire when the city council determines
73.23 that the amount described in subdivision 4, paragraph (d), has
73.24 been received from the taxes to finance the capital and
73.25 administrative costs for the acquisition, construction,
73.26 expansion, and improvement of facilities described in
73.27 subdivision 3, plus the additional amount needed to pay the
73.28 costs related to issuance of bonds under subdivision 4. Any
73.29 funds remaining after completion of the project and retirement
73.30 or redemption of the bonds may be placed in the general fund of
73.31 the city. The taxes imposed under subdivisions 1 and 2 may
73.32 expire at an earlier time if the city so determines by ordinance.
73.33 Subd. 6. [EFFECTIVE DATE.] This section is effective the
73.34 day after compliance by the governing body of the city of
73.35 Proctor with Minnesota Statutes, section 645.021, subdivision 3.
73.36 Sec. 19. [EFFECTIVE DATES.]
74.1 Sections 1, 2, 5, 7, 9, and 11 are effective for sales and
74.2 purchases made after June 30, 1999.
74.3 Section 3 is effective for amended returns and refund
74.4 claims filed on or after July 1, 1999.
74.5 Section 4 is effective the day following final enactment
74.6 and applies retroactively to all open tax years and to
74.7 assessments and appeals under Minnesota Statutes, sections
74.8 289A.38 and 289A.65, for which the time limits have not expired
74.9 on the date of final enactment of this act. The provisions of
74.10 Minnesota Statutes, section 289A.50, apply to refunds claimed
74.11 under section 4. Refunds claimed under section 4 must be filed
74.12 by the later of December 31, 1999, or the time limit under
74.13 Minnesota Statutes, section 289A.40, subdivision 1.
74.14 Section 6 is effective retroactively for sales and
74.15 purchases made after June 30, 1998.
74.16 Section 8 is effective for purchases and sales made after
74.17 the date of final enactment.
74.18 Section 10 is effective for purchases made after the date
74.19 of final enactment and before July 1, 2001.
74.20 Section 12 is effective the day after final enactment.
74.21 Section 12, paragraphs (a) to (c), apply to all local sales
74.22 taxes enacted after July 1, 1999. Section 12, paragraph (d),
74.23 applies to all local sales taxes in effect at the time of, or
74.24 imposed after the day of, the enactment of this section.
74.25 Section 13 is effective the day following final enactment.
74.26 ARTICLE 5
74.27 PROPERTY TAXES
74.28 Section 1. Minnesota Statutes 1998, section 271.01,
74.29 subdivision 5, is amended to read:
74.30 Subd. 5. [JURISDICTION.] The tax court shall have
74.31 statewide jurisdiction. Except for an appeal to the supreme
74.32 court or any other appeal allowed under this subdivision, the
74.33 tax court shall be the sole, exclusive, and final authority for
74.34 the hearing and determination of all questions of law and fact
74.35 arising under the tax laws of the state, as defined in this
74.36 subdivision, in those cases that have been appealed to the tax
75.1 court and in any case that has been transferred by the district
75.2 court to the tax court. The tax court shall have no
75.3 jurisdiction in any case that does not arise under the tax laws
75.4 of the state or in any criminal case or in any case determining
75.5 or granting title to real property or in any case that is under
75.6 the probate jurisdiction of the district court. The small
75.7 claims division of the tax court shall have no jurisdiction in
75.8 any case dealing with property valuation or assessment for
75.9 property tax purposes until the taxpayer has appealed the
75.10 valuation or assessment to the county board of equalization, and
75.11 in those towns and cities which have not transferred their
75.12 duties to the county, the town or city board of equalization,
75.13 except for: (i) those taxpayers whose original assessments are
75.14 determined by the commissioner of revenue; and (ii) those
75.15 taxpayers appealing a denial of a current year application for
75.16 the homestead classification for their property and the denial
75.17 was not reflected on a valuation notice issued in the year. The
75.18 tax court shall have no jurisdiction in any case involving an
75.19 order of the state board of equalization unless a taxpayer
75.20 contests the valuation of property. Laws governing taxes, aids,
75.21 and related matters administered by the commissioner of revenue,
75.22 laws dealing with property valuation, assessment or taxation of
75.23 property for property tax purposes, and any other laws that
75.24 contain provisions authorizing review of taxes, aids, and
75.25 related matters by the tax court shall be considered tax laws of
75.26 this state subject to the jurisdiction of the tax court. This
75.27 subdivision shall not be construed to prevent an appeal, as
75.28 provided by law, to an administrative agency, board of
75.29 equalization, review under section 274.13, subdivision 1c, or to
75.30 the commissioner of revenue. Wherever used in this chapter, the
75.31 term commissioner shall mean the commissioner of revenue, unless
75.32 otherwise specified.
75.33 Sec. 2. Minnesota Statutes 1998, section 271.21,
75.34 subdivision 2, is amended to read:
75.35 Subd. 2. [JURISDICTION.] At the election of the taxpayer,
75.36 the small claims division shall have jurisdiction only in the
76.1 following matters:
76.2 (a) in cases involving valuation, assessment, or taxation
76.3 of real or personal property, if the taxpayer has satisfied the
76.4 requirements of section 271.01, subdivision 5, and: (i) the
76.5 issue is a denial of a current year application for the
76.6 homestead classification for the taxpayer's property and the
76.7 denial was not reflected on a valuation notice issued in the
76.8 year; or (ii) in the case of nonhomestead property, the
76.9 assessor's estimated market value is less than $100,000; or
76.10 (b) any other case concerning the tax laws as defined in
76.11 section 271.01, subdivision 5, in which the amount in
76.12 controversy does not exceed $5,000, including penalty and
76.13 interest.
76.14 Sec. 3. Minnesota Statutes 1998, section 272.02,
76.15 subdivision 1, is amended to read:
76.16 Subdivision 1. [EXEMPT PROPERTY DESCRIBED.] All property
76.17 described in this section to the extent herein limited shall be
76.18 exempt from taxation:
76.19 (1) All public burying grounds.
76.20 (2) All public schoolhouses.
76.21 (3) All public hospitals.
76.22 (4) All academies, colleges, and universities, and all
76.23 seminaries of learning.
76.24 (5) All churches, church property, and houses of worship.
76.25 (6) Institutions of purely public charity except parcels of
76.26 property containing structures and the structures described in
76.27 section 273.13, subdivision 25, paragraph (e), other than those
76.28 that qualify for exemption under clause (25).
76.29 (7) All public property exclusively used for any public
76.30 purpose.
76.31 (8) Except for the taxable personal property enumerated
76.32 below, all personal property and the property described in
76.33 section 272.03, subdivision 1, paragraphs (c) and (d), shall be
76.34 exempt.
76.35 The following personal property shall be taxable:
76.36 (a) personal property which is part of an electric
77.1 generating, transmission, or distribution system or a pipeline
77.2 system transporting or distributing water, gas, crude oil, or
77.3 petroleum products or mains and pipes used in the distribution
77.4 of steam or hot or chilled water for heating or cooling
77.5 buildings and structures;
77.6 (b) railroad docks and wharves which are part of the
77.7 operating property of a railroad company as defined in section
77.8 270.80;
77.9 (c) personal property defined in section 272.03,
77.10 subdivision 2, clause (3);
77.11 (d) leasehold or other personal property interests which
77.12 are taxed pursuant to section 272.01, subdivision 2; 273.124,
77.13 subdivision 7; or 273.19, subdivision 1; or any other law
77.14 providing the property is taxable as if the lessee or user were
77.15 the fee owner;
77.16 (e) manufactured homes and sectional structures, including
77.17 storage sheds, decks, and similar removable improvements
77.18 constructed on the site of a manufactured home, sectional
77.19 structure, park trailer or travel trailer as provided in section
77.20 273.125, subdivision 8, paragraph (f); and
77.21 (f) flight property as defined in section 270.071.
77.22 (9) Personal property used primarily for the abatement and
77.23 control of air, water, or land pollution to the extent that it
77.24 is so used, and real property which is used primarily for
77.25 abatement and control of air, water, or land pollution as part
77.26 of an agricultural operation, as a part of a centralized
77.27 treatment and recovery facility operating under a permit issued
77.28 by the Minnesota pollution control agency pursuant to chapters
77.29 115 and 116 and Minnesota Rules, parts 7001.0500 to 7001.0730,
77.30 and 7045.0020 to 7045.1260, as a wastewater treatment facility
77.31 and for the treatment, recovery, and stabilization of metals,
77.32 oils, chemicals, water, sludges, or inorganic materials from
77.33 hazardous industrial wastes, or as part of an electric
77.34 generation system. For purposes of this clause, personal
77.35 property includes ponderous machinery and equipment used in a
77.36 business or production activity that at common law is considered
78.1 real property.
78.2 Any taxpayer requesting exemption of all or a portion of
78.3 any real property or any equipment or device, or part thereof,
78.4 operated primarily for the control or abatement of air or water
78.5 pollution shall file an application with the commissioner of
78.6 revenue. The equipment or device shall meet standards, rules,
78.7 or criteria prescribed by the Minnesota pollution control
78.8 agency, and must be installed or operated in accordance with a
78.9 permit or order issued by that agency. The Minnesota pollution
78.10 control agency shall upon request of the commissioner furnish
78.11 information or advice to the commissioner. On determining that
78.12 property qualifies for exemption, the commissioner shall issue
78.13 an order exempting the property from taxation. The equipment or
78.14 device shall continue to be exempt from taxation as long as the
78.15 permit issued by the Minnesota pollution control agency remains
78.16 in effect.
78.17 (10) Wetlands. For purposes of this subdivision,
78.18 "wetlands" means: (i) land described in section 103G.005,
78.19 subdivision 15a; (ii) land which is mostly under water, produces
78.20 little if any income, and has no use except for wildlife or
78.21 water conservation purposes, provided it is preserved in its
78.22 natural condition and drainage of it would be legal, feasible,
78.23 and economically practical for the production of livestock,
78.24 dairy animals, poultry, fruit, vegetables, forage and grains,
78.25 except wild rice; or (iii) land in a wetland preservation area
78.26 under sections 103F.612 to 103F.616. "Wetlands" under items (i)
78.27 and (ii) include adjacent land which is not suitable for
78.28 agricultural purposes due to the presence of the wetlands, but
78.29 do not include woody swamps containing shrubs or trees, wet
78.30 meadows, meandered water, streams, rivers, and floodplains or
78.31 river bottoms. Exemption of wetlands from taxation pursuant to
78.32 this section shall not grant the public any additional or
78.33 greater right of access to the wetlands or diminish any right of
78.34 ownership to the wetlands.
78.35 (11) Native prairie. The commissioner of the department of
78.36 natural resources shall determine lands in the state which are
79.1 native prairie and shall notify the county assessor of each
79.2 county in which the lands are located. Pasture land used for
79.3 livestock grazing purposes shall not be considered native
79.4 prairie for the purposes of this clause. Upon receipt of an
79.5 application for the exemption provided in this clause for lands
79.6 for which the assessor has no determination from the
79.7 commissioner of natural resources, the assessor shall refer the
79.8 application to the commissioner of natural resources who shall
79.9 determine within 30 days whether the land is native prairie and
79.10 notify the county assessor of the decision. Exemption of native
79.11 prairie pursuant to this clause shall not grant the public any
79.12 additional or greater right of access to the native prairie or
79.13 diminish any right of ownership to it.
79.14 (12) Property used in a continuous program to provide
79.15 emergency shelter for victims of domestic abuse, provided the
79.16 organization that owns and sponsors the shelter is exempt from
79.17 federal income taxation pursuant to section 501(c)(3) of the
79.18 Internal Revenue Code of 1986, as amended through December 31,
79.19 1992, notwithstanding the fact that the sponsoring organization
79.20 receives funding under section 8 of the United States Housing
79.21 Act of 1937, as amended.
79.22 (13) If approved by the governing body of the municipality
79.23 in which the property is located, property not exceeding one
79.24 acre which is owned and operated by any senior citizen group or
79.25 association of groups that in general limits membership to
79.26 persons age 55 or older and is organized and operated
79.27 exclusively for pleasure, recreation, and other nonprofit
79.28 purposes, no part of the net earnings of which inures to the
79.29 benefit of any private shareholders; provided the property is
79.30 used primarily as a clubhouse, meeting facility, or recreational
79.31 facility by the group or association and the property is not
79.32 used for residential purposes on either a temporary or permanent
79.33 basis.
79.34 (14) To the extent provided by section 295.44, real and
79.35 personal property used or to be used primarily for the
79.36 production of hydroelectric or hydromechanical power on a site
80.1 owned by the federal government, the state, or a local
80.2 governmental unit which is developed and operated pursuant to
80.3 the provisions of section 103G.535.
80.4 (15) If approved by the governing body of the municipality
80.5 in which the property is located, and if construction is
80.6 commenced after June 30, 1983:
80.7 (a) a "direct satellite broadcasting facility" operated by
80.8 a corporation licensed by the federal communications commission
80.9 to provide direct satellite broadcasting services using direct
80.10 broadcast satellites operating in the 12-ghz. band; and
80.11 (b) a "fixed satellite regional or national program service
80.12 facility" operated by a corporation licensed by the federal
80.13 communications commission to provide fixed satellite-transmitted
80.14 regularly scheduled broadcasting services using satellites
80.15 operating in the 6-ghz. band.
80.16 An exemption provided by clause (15) shall apply for a period
80.17 not to exceed five years. When the facility no longer qualifies
80.18 for exemption, it shall be placed on the assessment rolls as
80.19 provided in subdivision 4. Before approving a tax exemption
80.20 pursuant to this paragraph, the governing body of the
80.21 municipality shall provide an opportunity to the members of the
80.22 county board of commissioners of the county in which the
80.23 facility is proposed to be located and the members of the school
80.24 board of the school district in which the facility is proposed
80.25 to be located to meet with the governing body. The governing
80.26 body shall present to the members of those boards its estimate
80.27 of the fiscal impact of the proposed property tax exemption.
80.28 The tax exemption shall not be approved by the governing body
80.29 until the county board of commissioners has presented its
80.30 written comment on the proposal to the governing body or 30 days
80.31 have passed from the date of the transmittal by the governing
80.32 body to the board of the information on the fiscal impact,
80.33 whichever occurs first.
80.34 (16) Real and personal property owned and operated by a
80.35 private, nonprofit corporation exempt from federal income
80.36 taxation pursuant to United States Code, title 26, section
81.1 501(c)(3), primarily used in the generation and distribution of
81.2 hot water for heating buildings and structures.
81.3 (17) Notwithstanding section 273.19, state lands that are
81.4 leased from the department of natural resources under section
81.5 92.46.
81.6 (18) Electric power distribution lines and their
81.7 attachments and appurtenances, that are used primarily for
81.8 supplying electricity to farmers at retail.
81.9 (19) Transitional housing facilities. "Transitional
81.10 housing facility" means a facility that meets the following
81.11 requirements. (i) It provides temporary housing to individuals,
81.12 couples, or families. (ii) It has the purpose of reuniting
81.13 families and enabling parents or individuals to obtain
81.14 self-sufficiency, advance their education, get job training, or
81.15 become employed in jobs that provide a living wage. (iii) It
81.16 provides support services such as child care, work readiness
81.17 training, and career development counseling; and a
81.18 self-sufficiency program with periodic monitoring of each
81.19 resident's progress in completing the program's goals. (iv) It
81.20 provides services to a resident of the facility for at least
81.21 three months but no longer than three years, except residents
81.22 enrolled in an educational or vocational institution or job
81.23 training program. These residents may receive services during
81.24 the time they are enrolled but in no event longer than four
81.25 years. (v) It is owned and operated or under lease from a unit
81.26 of government or governmental agency under a property
81.27 disposition program and operated by one or more organizations
81.28 exempt from federal income tax under section 501(c)(3) of the
81.29 Internal Revenue Code of 1986, as amended through December 31,
81.30 1992. This exemption applies notwithstanding the fact that the
81.31 sponsoring organization receives financing by a direct federal
81.32 loan or federally insured loan or a loan made by the Minnesota
81.33 housing finance agency under the provisions of either Title II
81.34 of the National Housing Act or the Minnesota Housing Finance
81.35 Agency Law of 1971 or rules promulgated by the agency pursuant
81.36 to it, and notwithstanding the fact that the sponsoring
82.1 organization receives funding under Section 8 of the United
82.2 States Housing Act of 1937, as amended.
82.3 (20) Real and personal property, including leasehold or
82.4 other personal property interests, owned and operated by a
82.5 corporation if more than 50 percent of the total voting power of
82.6 the stock of the corporation is owned collectively by: (i) the
82.7 board of regents of the University of Minnesota, (ii) the
82.8 University of Minnesota Foundation, an organization exempt from
82.9 federal income taxation under section 501(c)(3) of the Internal
82.10 Revenue Code of 1986, as amended through December 31, 1992, and
82.11 (iii) a corporation organized under chapter 317A, which by its
82.12 articles of incorporation is prohibited from providing pecuniary
82.13 gain to any person or entity other than the regents of the
82.14 University of Minnesota; which property is used primarily to
82.15 manage or provide goods, services, or facilities utilizing or
82.16 relating to large-scale advanced scientific computing resources
82.17 to the regents of the University of Minnesota and others.
82.18 (21)(a) Small scale wind energy conversion systems
82.19 installed after January 1, 1991, and used as an electric power
82.20 source are exempt.
82.21 "Small scale wind energy conversion systems" are wind
82.22 energy conversion systems, as defined in section 216C.06,
82.23 subdivision 12, including the foundation or support pad, which
82.24 are (i) used as an electric power source; (ii) located within
82.25 one county and owned by the same owner; and (iii) produce two
82.26 megawatts or less of electricity as measured by nameplate
82.27 ratings.
82.28 (b) Medium scale wind energy conversion systems installed
82.29 after January 1, 1991, are treated as follows: (i) the
82.30 foundation and support pad are taxable; (ii) the associated
82.31 supporting and protective structures are exempt for the first
82.32 five assessment years after they have been constructed, and
82.33 thereafter, 30 percent of the market value of the associated
82.34 supporting and protective structures are taxable; and (iii) the
82.35 turbines, blades, transformers, and its related equipment, are
82.36 exempt. "Medium scale wind energy conversion systems" are wind
83.1 energy conversion systems as defined in section 216C.06,
83.2 subdivision 12, including the foundation or support pad, which
83.3 are: (i) used as an electric power source; (ii) located within
83.4 one county and owned by the same owner; and (iii) produce more
83.5 than two but equal to or less than 12 megawatts of energy as
83.6 measured by nameplate ratings.
83.7 (c) Large scale wind energy conversion systems installed
83.8 after January 1, 1991, are treated as follows: 25 percent of
83.9 the market value of all property is taxable, including (i) the
83.10 foundation and support pad; (ii) the associated supporting and
83.11 protective structures; and (iii) the turbines, blades,
83.12 transformers, and its related equipment. "Large scale wind
83.13 energy conversion systems" are wind energy conversion systems as
83.14 defined in section 216C.06, subdivision 12, including the
83.15 foundation or support pad, which are: (i) used as an electric
83.16 power source; and (ii) produce more than 12 megawatts of energy
83.17 as measured by nameplate ratings.
83.18 (22) Containment tanks, cache basins, and that portion of
83.19 the structure needed for the containment facility used to
83.20 confine agricultural chemicals as defined in section 18D.01,
83.21 subdivision 3, as required by the commissioner of agriculture
83.22 under chapter 18B or 18C.
83.23 (23) Photovoltaic devices, as defined in section 216C.06,
83.24 subdivision 13, installed after January 1, 1992, and used to
83.25 produce or store electric power.
83.26 (24) Real and personal property owned and operated by a
83.27 private, nonprofit corporation exempt from federal income
83.28 taxation pursuant to United States Code, title 26, section
83.29 501(c)(3), primarily used for an ice arena or ice rink, and used
83.30 primarily for youth and high school programs.
83.31 (25) A structure that is situated on real property that is
83.32 used for:
83.33 (i) housing for the elderly or for low- and moderate-income
83.34 families as defined in Title II of the National Housing Act, as
83.35 amended through December 31, 1990, and funded by a direct
83.36 federal loan or federally insured loan made pursuant to Title II
84.1 of the act; or
84.2 (ii) housing lower income families or elderly or
84.3 handicapped persons, as defined in Section 8 of the United
84.4 States Housing Act of 1937, as amended.
84.5 In order for a structure to be exempt under item (i) or
84.6 (ii), it must also meet each of the following criteria:
84.7 (A) is owned by an entity which is operated as a nonprofit
84.8 corporation organized under chapter 317A;
84.9 (B) is owned by an entity which has not entered into a
84.10 housing assistance payments contract under Section 8 of the
84.11 United States Housing Act of 1937, or, if the entity which owns
84.12 the structure has entered into a housing assistance payments
84.13 contract under Section 8 of the United States Housing Act of
84.14 1937, the contract provides assistance for less than 90 percent
84.15 of the dwelling units in the structure, excluding dwelling units
84.16 intended for management or maintenance personnel;
84.17 (C) operates an on-site congregate dining program in which
84.18 participation by residents is mandatory, and provides assisted
84.19 living or similar social and physical support services for
84.20 residents; and
84.21 (D) was not assessed and did not pay tax under chapter 273
84.22 prior to the 1991 levy, while meeting the other conditions of
84.23 this clause.
84.24 An exemption under this clause remains in effect for taxes
84.25 levied in each year or partial year of the term of its permanent
84.26 financing.
84.27 (26) Real and personal property that is located in the
84.28 Superior National Forest, and owned or leased and operated by a
84.29 nonprofit organization that is exempt from federal income
84.30 taxation under section 501(c)(3) of the Internal Revenue Code of
84.31 1986, as amended through December 31, 1992, and primarily used
84.32 to provide recreational opportunities for disabled veterans and
84.33 their families.
84.34 (27) Manure pits and appurtenances, which may include
84.35 slatted floors and pipes, installed or operated in accordance
84.36 with a permit, order, or certificate of compliance issued by the
85.1 Minnesota pollution control agency. The exemption shall
85.2 continue for as long as the permit, order, or certificate issued
85.3 by the Minnesota pollution control agency remains in effect.
85.4 (28) Notwithstanding clause (8), item (a), attached
85.5 machinery and other personal property which is part of a
85.6 facility containing a cogeneration system as described in
85.7 section 216B.166, subdivision 2, paragraph (a), if the
85.8 cogeneration system has met the following criteria: (i) the
85.9 system utilizes natural gas as a primary fuel and the
85.10 cogenerated steam initially replaces steam generated from
85.11 existing thermal boilers utilizing coal; (ii) the facility
85.12 developer is selected as a result of a procurement process
85.13 ordered by the public utilities commission; and (iii)
85.14 construction of the facility is commenced after July 1, 1994,
85.15 and before July 1, 1997.
85.16 (29) Real property acquired by a home rule charter city,
85.17 statutory city, county, town, or school district under a lease
85.18 purchase agreement or an installment purchase contract during
85.19 the term of the lease purchase agreement as long as and to the
85.20 extent that the property is used by the city, county, town, or
85.21 school district and devoted to a public use and to the extent it
85.22 is not subleased to any private individual, entity, association,
85.23 or corporation in connection with a business or enterprise
85.24 operated for profit.
85.25 (30) Property owned by a nonprofit charitable organization
85.26 that qualifies for tax exemption under section 501(c)(3) of the
85.27 Internal Revenue Code of 1986, as amended through December 31,
85.28 1997, that is intended to be used as a business incubator in a
85.29 high-unemployment county but is not occupied on the assessment
85.30 date. As used in this clause, a "business incubator" is a
85.31 facility used for the development of nonretail businesses,
85.32 offering access to equipment, space, services, and advice to the
85.33 tenant businesses, for the purpose of encouraging economic
85.34 development, diversification, and job creation in the area
85.35 served by the organization, and "high-unemployment county" is a
85.36 county that had an average annual unemployment rate of 7.9
86.1 percent or greater in 1997. Property that qualifies for the
86.2 exemption under this clause is limited to no more than two
86.3 contiguous parcels and structures that do not exceed in the
86.4 aggregate 40,000 square feet. This exemption expires after
86.5 taxes payable in 2005.
86.6 (31) Notwithstanding any other law to the contrary, real
86.7 property that meets the following criteria is exempt:
86.8 (i) constitutes a wastewater treatment system (a)
86.9 constructed by a municipality using public funds, (b) operates
86.10 under a State Disposal System Permit issued by the Minnesota
86.11 pollution control agency pursuant to chapters 115 and 116 and
86.12 Minnesota Rules, chapter 700l, and (c) applies its effluent to
86.13 land used as part of an agricultural operation;
86.14 (ii) is located within a municipality of a population of
86.15 less than 10,000;
86.16 (iii) is used for treatment of effluent from a private
86.17 potato processing facility; and
86.18 (iv) is owned by a municipality and operated by a private
86.19 entity under agreement with that municipality.
86.20 (32) Notwithstanding clause (8), item (a), attached
86.21 machinery and other personal property which is part of a
86.22 simple-cycle combustion-turbine electric generation facility
86.23 that exceeds 250 megawatts of installed capacity and that meets
86.24 the requirements of this clause. At the time of construction,
86.25 the facility must:
86.26 (i) not be owned by a public utility as defined in section
86.27 216B.02, subdivision 4;
86.28 (ii) utilize natural gas as a primary fuel;
86.29 (iii) be located within 20 miles of the intersection of an
86.30 existing 42-inch (outside diameter) natural gas pipeline and a
86.31 345-kilovolt high-voltage electric transmission line; and
86.32 (iv) be designed to provide peaking, emergency backup, or
86.33 contingency services, and have received a certificate of need
86.34 pursuant to section 216B.243 demonstrating demand for its
86.35 capacity.
86.36 Construction of the facility must be commenced after July 1,
87.1 1999, and before July 1, 2003. Property eligible for this
87.2 exemption does not include electric transmission lines and
87.3 interconnections or gas pipelines and interconnections
87.4 appurtenant to the property or the facility.
87.5 Sec. 4. Minnesota Statutes 1998, section 272.027, is
87.6 amended to read:
87.7 272.027 [PERSONAL PROPERTY USED TO GENERATE ELECTRICITY FOR
87.8 PRODUCTION AND RESALE.]
87.9 Subdivision 1. [ELECTRICITY GENERATED TO PRODUCE GOODS AND
87.10 SERVICES.] Personal property used to generate electric power is
87.11 exempt from property taxation if the electric power is used to
87.12 manufacture or produce goods, products, or services, other than
87.13 electric power, by the owner of the electric generation
87.14 plant. Except as provided in subdivisions 2 and 3, the
87.15 exemption does not apply to property used to produce electric
87.16 power for sale to others and does not apply to real property.
87.17 In determining the value subject to tax, a proportionate share
87.18 of the value of the generating facilities, equal to the
87.19 proportion that the power sold to others bears to the total
87.20 generation of the plant, is subject to the general property tax
87.21 in the same manner as other property. Power generated in such a
87.22 plant and exchanged for an equivalent amount of power that is
87.23 used for the manufacture or production of goods, products, or
87.24 services other than electric power by the owner of the
87.25 generating plant is considered to be used by the owner of the
87.26 plant.
87.27 Subd. 2. [EXEMPTION FOR CUSTOMER OWNED PROPERTY
87.28 TRANSFERRED TO A UTILITY.] (a) Tools, implements, and machinery
87.29 of an electric generating facility are exempt if all the
87.30 following requirements are met:
87.31 (1) the electric generating facilities were operational and
87.32 met the requirements for exemption of personal property under
87.33 subdivision 1 on January 2, 1999; and
87.34 (2) the generating facility is sold to a Minnesota electric
87.35 utility.
87.36 (b) Any tools, implements, and machinery installed to
88.1 increase generation capacity are also exempt under this section
88.2 provided that the existing tools, implements, and machinery are
88.3 exempt under paragraph (a).
88.4 Subd. 3. [EXEMPTION ELECTRIC POWER PLANT PERSONAL
88.5 PROPERTY; TACONITE AND STEEL MILL.]
88.6 Tools, implements, and machinery of an electric generating
88.7 facility are exempt if all the following requirements are met:
88.8 (1) the electric generating facility, when completed, will
88.9 have a capacity of at least 450 megawatts;
88.10 (2) the electric generating facility is adjacent to a
88.11 taconite mine direct-reduction steel mill; and
88.12 (3) the electric generating facility supplied over 60
88.13 percent of its electricity generated in the prior year to the
88.14 adjacent direct-reduction plant and steel mill.
88.15 Sec. 5. Minnesota Statutes 1998, section 272.03,
88.16 subdivision 6, is amended to read:
88.17 Subd. 6. [TRACT, LOT, PARCEL, AND PIECE OR PARCEL.]
88.18 (a) "Tract," "lot," "parcel," and "piece or parcel" of land
88.19 means any contiguous quantity of land in the possession of,
88.20 owned by, or recorded as the property of, the same claimant or
88.21 person.
88.22 (b) Notwithstanding paragraph (a), property that is owned
88.23 by a utility, leased for residential or recreational uses for
88.24 terms of 20 years or longer, and separately valued by the
88.25 assessor, will be treated for property tax purposes as separate
88.26 parcels.
88.27 Sec. 6. Minnesota Statutes 1998, section 273.11,
88.28 subdivision 1a, is amended to read:
88.29 Subd. 1a. [LIMITED MARKET VALUE.] In the case of all
88.30 property classified as agricultural homestead or nonhomestead,
88.31 residential homestead or nonhomestead, or noncommercial seasonal
88.32 recreational residential, the assessor shall compare the value
88.33 with that determined in the preceding assessment. The amount of
88.34 the increase entered in the current assessment shall not exceed
88.35 the greater of (1) ten 8.5 percent of the value in the preceding
88.36 assessment, or (2) one-fourth 15 percent of the difference
89.1 between the current assessment and the preceding assessment.
89.2 This limitation shall not apply to increases in value due to
89.3 improvements. For purposes of this subdivision, the term
89.4 "assessment" means the value prior to any exclusion under
89.5 subdivision 16.
89.6 The provisions of this subdivision shall be in effect only
89.7 for assessment years 1993 through assessment year 2001.
89.8 For purposes of the assessment/sales ratio study conducted
89.9 under section 127A.48, and the computation of state aids paid
89.10 under chapters 122A, 123A, 123B, 124D, 125A, 126C, 127A, and
89.11 477A, market values and net tax capacities determined under this
89.12 subdivision and subdivision 16, shall be used.
89.13 Sec. 7. Minnesota Statutes 1998, section 273.11,
89.14 subdivision 16, is amended to read:
89.15 Subd. 16. [VALUATION EXCLUSION FOR CERTAIN IMPROVEMENTS.]
89.16 Improvements to homestead property made before January 2, 2003,
89.17 shall be fully or partially excluded from the value of the
89.18 property for assessment purposes provided that (1) the house is
89.19 at least 35 45 years old at the time of the improvement and (2)
89.20 either
89.21 (a) the assessor's estimated market value of the house on
89.22 January 2 of the current year is equal to or less than $150,000,
89.23 or $400,000.
89.24 (b) if the estimated market value of the house is over
89.25 $150,000 market value but is less than $300,000 on January 2 of
89.26 the current year, the property qualifies if
89.27 (i) it is located in a city or town in which 50 percent or
89.28 more of the owner-occupied housing units were constructed before
89.29 1960 based upon the 1990 federal census, and
89.30 (ii) the city or town's median family income based upon the
89.31 1990 federal census is less than the statewide median family
89.32 income based upon the 1990 federal census, or
89.33 (c) if the estimated market value of the house is $300,000
89.34 or more on January 2 of the current year, the property qualifies
89.35 if
89.36 (i) it is located in a city or town in which 45 percent or
90.1 more of the homes were constructed before 1940 based upon the
90.2 1990 federal census, and
90.3 (ii) it is located in a city or town in which 45 percent or
90.4 more of the housing units were rental based upon the 1990
90.5 federal census, and
90.6 (iii) the city or town's median value of owner-occupied
90.7 housing units based upon the 1990 federal census is less than
90.8 the statewide median value of owner-occupied housing units based
90.9 upon the 1990 federal census.
90.10 For purposes of determining this eligibility, "house" means
90.11 land and buildings.
90.12 The age of a residence is the number of years since the
90.13 original year of its construction. In the case of a residence
90.14 that is relocated, the relocation must be from a location within
90.15 the state and the only improvements eligible for exclusion under
90.16 this subdivision are (1) those for which building permits were
90.17 issued to the homeowner after the residence was relocated to its
90.18 present site, and (2) those undertaken during or after the year
90.19 the residence is initially occupied by the homeowner, excluding
90.20 any market value increase relating to basic improvements that
90.21 are necessary to install the residence on its foundation and
90.22 connect it to utilities at its present site. In the case of an
90.23 owner-occupied duplex or triplex, the improvement is eligible
90.24 regardless of which portion of the property was improved.
90.25 If the property lies in a jurisdiction which is subject to
90.26 a building permit process, a building permit must have been
90.27 issued prior to commencement of the improvement. Any
90.28 improvement The improvements for a single project or in any one
90.29 year must add at least $1,000 $5,000 to the value of the
90.30 property to be eligible for exclusion under this subdivision.
90.31 Only improvements to the structure which is the residence of the
90.32 qualifying homesteader or construction of or improvements to no
90.33 more than one two-car garage per residence qualify for the
90.34 provisions of this subdivision. If an improvement was begun
90.35 between January 2, 1992, and January 2, 1993, any value added
90.36 from that improvement for the January 1994 and subsequent
91.1 assessments shall qualify for exclusion under this subdivision
91.2 provided that a building permit was obtained for the improvement
91.3 between January 2, 1992, and January 2, 1993. Whenever a
91.4 building permit is issued for property currently classified as
91.5 homestead, the issuing jurisdiction shall notify the property
91.6 owner of the possibility of valuation exclusion under this
91.7 subdivision. The assessor shall require an application,
91.8 including documentation of the age of the house from the owner,
91.9 if unknown by the assessor. The application may be filed
91.10 subsequent to the date of the building permit provided that the
91.11 application must be filed within three years of the date the
91.12 building permit was issued for the improvement. If the property
91.13 lies in a jurisdiction which is not subject to a building permit
91.14 process, the application must be filed within three years of the
91.15 date the improvement was made. The assessor may require proof
91.16 from the taxpayer of the date the improvement was made.
91.17 Applications must be received prior to July 1 of any year in
91.18 order to be effective for taxes payable in the following year.
91.19 No exclusion for an improvement may be granted for an
91.20 improvement by a local board of review or county board of
91.21 equalization, and no abatement of the taxes for qualifying
91.22 improvements may be granted by the county board unless (1) a
91.23 building permit was issued prior to the commencement of the
91.24 improvement if the jurisdiction requires a building permit, and
91.25 (2) an application was completed.
91.26 The assessor shall note the qualifying value of each
91.27 improvement on the property's record, and the sum of those
91.28 amounts shall be subtracted from the value of the property in
91.29 each year for ten years after the improvement has been made, at
91.30 which time an amount equal to 20 percent of the qualifying value
91.31 shall be added back in each of the five subsequent assessment
91.32 years. After ten years the amount of the qualifying value shall
91.33 be added back as follows:
91.34 (1) 50 percent in the two subsequent assessment years if
91.35 the qualifying value is equal to or less than $10,000 market
91.36 value; or
92.1 (2) 20 percent in the five subsequent assessment years if
92.2 the qualifying value is greater than $10,000 market value.
92.3 If an application is filed after the first assessment date at
92.4 which an improvement could have been subject to the valuation
92.5 exclusion under this subdivision, the ten-year period during
92.6 which the value is subject to exclusion is reduced by the number
92.7 of years that have elapsed since the property would have
92.8 qualified initially. The valuation exclusion shall terminate
92.9 whenever (1) the property is sold, or (2) the property is
92.10 reclassified to a class which does not qualify for treatment
92.11 under this subdivision. Improvements made by an occupant who is
92.12 the purchaser of the property under a conditional purchase
92.13 contract do not qualify under this subdivision unless the seller
92.14 of the property is a governmental entity. The qualifying value
92.15 of the property shall be computed based upon the increase from
92.16 that structure's market value as of January 2 preceding the
92.17 acquisition of the property by the governmental entity.
92.18 The total qualifying value for a homestead may not exceed
92.19 $50,000. The total qualifying value for a homestead with a
92.20 house that is less than 70 years old may not exceed $25,000.
92.21 The term "qualifying value" means the increase in estimated
92.22 market value resulting from the improvement if the improvement
92.23 occurs when the house is at least 70 years old, or one-half of
92.24 the increase in estimated market value resulting from the
92.25 improvement otherwise. The $25,000 and $50,000 maximum
92.26 qualifying value under this subdivision may result from up to
92.27 three separate multiple improvements to the homestead. The
92.28 application shall state, in clear language, that If more than
92.29 three improvements are made to the qualifying property, a
92.30 taxpayer may choose which three improvements are eligible,
92.31 provided that after the taxpayer has made the choice and any
92.32 valuation attributable to those improvements has been excluded
92.33 from taxation, no further changes can be made by the taxpayer.
92.34 If 50 percent or more of the square footage of a structure
92.35 is voluntarily razed or removed, the valuation increase
92.36 attributable to any subsequent improvements to the remaining
93.1 structure does not qualify for the exclusion under this
93.2 subdivision. If a structure is unintentionally or accidentally
93.3 destroyed by a natural disaster, the property is eligible for an
93.4 exclusion under this subdivision provided that the structure was
93.5 not completely destroyed. The qualifying value on property
93.6 destroyed by a natural disaster shall be computed based upon the
93.7 increase from that structure's market value as determined on
93.8 January 2 of the year in which the disaster occurred. A
93.9 property receiving benefits under the homestead disaster
93.10 provisions under section 273.123 is not disqualified from
93.11 receiving an exclusion under this subdivision. If any
93.12 combination of improvements made to a structure after January 1,
93.13 1993, increases the size of the structure by 100 percent or
93.14 more, the valuation increase attributable to the portion of the
93.15 improvement that causes the structure's size to exceed 100
93.16 percent does not qualify for exclusion under this subdivision.
93.17 Sec. 8. Minnesota Statutes 1998, section 273.111, is
93.18 amended by adding a subdivision to read:
93.19 Subd. 15. [DISSECTED PARCELS; CONTINUED DEFERMENT.] Real
93.20 estate consisting of more than ten, but less than 15, acres
93.21 which has:
93.22 (1) been owned by the applicant or the applicant's parents
93.23 for at least 70 years;
93.24 (2) been dissected by two or more major parkways or
93.25 interstate highways; and
93.26 (3) qualified for the agricultural valuation and tax
93.27 deferment under this section through assessment year 1996, taxes
93.28 payable in 1997,
93.29 shall continue to qualify for treatment under this section until
93.30 the applicant's death or transfer or sale by the applicant of
93.31 the applicant's interest in the real estate. When the property
93.32 ceases to qualify for treatment under this section, the
93.33 recapture provisions of subdivision 9 will apply with respect to
93.34 the last ten years that the property has been valued and
93.35 assessed under this section.
93.36 Sec. 9. Minnesota Statutes 1998, section 273.124,
94.1 subdivision 1, is amended to read:
94.2 Subdivision 1. [GENERAL RULE.] (a) Residential real estate
94.3 that is occupied and used for the purposes of a homestead by its
94.4 owner, who must be a Minnesota resident, is a residential
94.5 homestead.
94.6 Agricultural land, as defined in section 273.13,
94.7 subdivision 23, that is occupied and used as a homestead by its
94.8 owner, who must be a Minnesota resident, is an agricultural
94.9 homestead.
94.10 Dates for establishment of a homestead and homestead
94.11 treatment provided to particular types of property are as
94.12 provided in this section.
94.13 Property of a trustee, beneficiary, or grantor of a trust
94.14 is not disqualified from receiving homestead benefits if the
94.15 homestead requirements under this chapter are satisfied.
94.16 The assessor shall require proof, as provided in
94.17 subdivision 13, of the facts upon which classification as a
94.18 homestead may be determined. Notwithstanding any other law, the
94.19 assessor may at any time require a homestead application to be
94.20 filed in order to verify that any property classified as a
94.21 homestead continues to be eligible for homestead status.
94.22 Notwithstanding any other law to the contrary, the department of
94.23 revenue may, upon request from an assessor, verify whether an
94.24 individual who is requesting or receiving homestead
94.25 classification has filed a Minnesota income tax return as a
94.26 resident for the most recent taxable year for which the
94.27 information is available.
94.28 When there is a name change or a transfer of homestead
94.29 property, the assessor may reclassify the property in the next
94.30 assessment unless a homestead application is filed to verify
94.31 that the property continues to qualify for homestead
94.32 classification.
94.33 (b) For purposes of this section, homestead property shall
94.34 include property which is used for purposes of the homestead but
94.35 is separated from the homestead by a road, street, lot,
94.36 waterway, or other similar intervening property. The term "used
95.1 for purposes of the homestead" shall include but not be limited
95.2 to uses for gardens, garages, or other outbuildings commonly
95.3 associated with a homestead, but shall not include vacant land
95.4 held primarily for future development. In order to receive
95.5 homestead treatment for the noncontiguous property, the owner
95.6 must use the property for the purposes of the homestead, and
95.7 must apply to the assessor, both by the deadlines given in
95.8 subdivision 9. After initial qualification for the homestead
95.9 treatment, additional applications for subsequent years are not
95.10 required.
95.11 (c) Residential real estate that is occupied and used for
95.12 purposes of a homestead by a relative of the owner is a
95.13 homestead but only to the extent of the homestead treatment that
95.14 would be provided if the related owner occupied the property.
95.15 For purposes of this paragraph and paragraph (g), "relative"
95.16 means a parent, stepparent, child, stepchild, grandparent,
95.17 grandchild, brother, sister, uncle, or aunt, nephew, or niece.
95.18 This relationship may be by blood or marriage. Property that
95.19 has been classified as seasonal recreational residential
95.20 property at any time during which it has been owned by the
95.21 current owner or spouse of the current owner will not be
95.22 reclassified as a homestead unless it is occupied as a homestead
95.23 by the owner; this prohibition also applies to property that, in
95.24 the absence of this paragraph, would have been classified as
95.25 seasonal recreational residential property at the time when the
95.26 residence was constructed. Neither the related occupant nor the
95.27 owner of the property may claim a property tax refund under
95.28 chapter 290A for a homestead occupied by a relative. In the
95.29 case of a residence located on agricultural land, only the
95.30 house, garage, and immediately surrounding one acre of land
95.31 shall be classified as a homestead under this paragraph, except
95.32 as provided in paragraph (d).
95.33 (d) Agricultural property that is occupied and used for
95.34 purposes of a homestead by a relative of the owner, is a
95.35 homestead, only to the extent of the homestead treatment that
95.36 would be provided if the related owner occupied the property,
96.1 and only if all of the following criteria are met:
96.2 (1) the relative who is occupying the agricultural property
96.3 is a son, daughter, father, or mother of the owner of the
96.4 agricultural property or a son or daughter of the spouse of the
96.5 owner of the agricultural property,
96.6 (2) the owner of the agricultural property must be a
96.7 Minnesota resident,
96.8 (3) the owner of the agricultural property must not receive
96.9 homestead treatment on any other agricultural property in
96.10 Minnesota, and
96.11 (4) the owner of the agricultural property is limited to
96.12 only one agricultural homestead per family under this paragraph.
96.13 Neither the related occupant nor the owner of the property
96.14 may claim a property tax refund under chapter 290A for a
96.15 homestead occupied by a relative qualifying under this
96.16 paragraph. For purposes of this paragraph, "agricultural
96.17 property" means the house, garage, other farm buildings and
96.18 structures, and agricultural land.
96.19 Application must be made to the assessor by the owner of
96.20 the agricultural property to receive homestead benefits under
96.21 this paragraph. The assessor may require the necessary proof
96.22 that the requirements under this paragraph have been met.
96.23 (e) In the case of property owned by a property owner who
96.24 is married, the assessor must not deny homestead treatment in
96.25 whole or in part if only one of the spouses occupies the
96.26 property and the other spouse is absent due to: (1) marriage
96.27 dissolution proceedings, (2) legal separation, (3) employment or
96.28 self-employment in another location, or (4) other personal
96.29 circumstances causing the spouses to live separately, not
96.30 including an intent to obtain two homestead classifications for
96.31 property tax purposes. To qualify under clause (3), the
96.32 spouse's place of employment or self-employment must be at least
96.33 50 miles distant from the other spouse's place of employment,
96.34 and the homesteads must be at least 50 miles distant from each
96.35 other. Homestead treatment, in whole or in part, shall not be
96.36 denied to the owner's spouse who previously occupied the
97.1 residence with the owner if the absence of the owner is due to
97.2 one of the exceptions provided in this paragraph.
97.3 (f) The assessor must not deny homestead treatment in whole
97.4 or in part if:
97.5 (1) in the case of a property owner who is not married, the
97.6 owner is absent due to residence in a nursing home or boarding
97.7 care facility and the property is not otherwise occupied; or
97.8 (2) in the case of a property owner who is married, the
97.9 owner or the owner's spouse or both are absent due to residence
97.10 in a nursing home or boarding care facility and the property is
97.11 not occupied or is occupied only by the owner's spouse.
97.12 (g) If an individual is purchasing property with the intent
97.13 of claiming it as a homestead and is required by the terms of
97.14 the financing agreement to have a relative shown on the deed as
97.15 a coowner, the assessor shall allow a full homestead
97.16 classification. This provision only applies to first-time
97.17 purchasers, whether married or single, or to a person who had
97.18 previously been married and is purchasing as a single individual
97.19 for the first time. The application for homestead benefits must
97.20 be on a form prescribed by the commissioner and must contain the
97.21 data necessary for the assessor to determine if full homestead
97.22 benefits are warranted.
97.23 (h) If residential or agricultural real estate is occupied
97.24 and used for purposes of a homestead by a child of a deceased
97.25 owner and the property is subject to jurisdiction of probate
97.26 court, the child shall receive relative homestead classification
97.27 under paragraph (c) or (d) to the same extent they would be
97.28 entitled to it if the owner was still living, until the probate
97.29 is completed. For purposes of this paragraph, "child" includes
97.30 a relationship by blood or by marriage.
97.31 Sec. 10. Minnesota Statutes 1998, section 273.124,
97.32 subdivision 7, is amended to read:
97.33 Subd. 7. [LEASED BUILDINGS OR LAND.] For purposes of class
97.34 1 determinations, homesteads include:
97.35 (a) buildings and appurtenances owned and used by the
97.36 occupant as a permanent residence which are located upon land
98.1 the title to which is vested in a person or entity other than
98.2 the occupant;
98.3 (b) all buildings and appurtenances located upon land owned
98.4 by the occupant and used for the purposes of a homestead
98.5 together with the land upon which they are located, if all of
98.6 the following criteria are met:
98.7 (1) the occupant is using the property as a permanent
98.8 residence;
98.9 (2) the occupant is paying the property taxes and any
98.10 special assessments levied against the property;
98.11 (3) the occupant has signed a lease which has an option to
98.12 purchase the buildings and appurtenances;
98.13 (4) the term of the lease is at least five years; and
98.14 (5) the occupant has made a down payment of at least $5,000
98.15 in cash if the property was purchased by means of a contract for
98.16 deed or subject to a mortgage.
98.17 (c) all buildings and appurtenances and the land upon which
98.18 they are located that are used for purposes of a homestead, if
98.19 all of the following criteria are met:
98.20 (1) the land is owned by a utility, which maintains
98.21 ownership of the land in order to facilitate compliance with the
98.22 terms of its hydroelectric project license from the federal
98.23 energy regulatory commission;
98.24 (2) the land is leased for a term of 20 years or more;
98.25 (3) the occupant is using the property as a permanent
98.26 residence; and
98.27 (4) the occupant is paying the property taxes and any
98.28 special assessments levied against the property.
98.29 Any taxpayer meeting all the requirements of this paragraph
98.30 must notify the county assessor, or the assessor who has the
98.31 powers of the county assessor pursuant to section 273.063, in
98.32 writing, as soon as possible after signing the lease agreement
98.33 and occupying the buildings as a homestead.
98.34 Sec. 11. Minnesota Statutes 1998, section 273.124,
98.35 subdivision 8, is amended to read:
98.36 Subd. 8. [HOMESTEAD OWNED BY FAMILY FARM CORPORATION OR
99.1 PARTNERSHIP OR LEASED TO FAMILY FARM CORPORATION OR
99.2 PARTNERSHIP.] (a) Each family farm corporation and each
99.3 partnership operating a family farm is entitled to class 1b
99.4 under section 273.13, subdivision 22, paragraph (b), or class 2a
99.5 assessment for one homestead occupied by a shareholder or
99.6 partner thereof who is residing on the land and actively engaged
99.7 in farming of the land owned by the corporation or partnership.
99.8 Homestead treatment applies even if legal title to the property
99.9 is in the name of the corporation or partnership and not in the
99.10 name of the person residing on it. "Family farm corporation"
99.11 and "family farm" have the meanings given in section 500.24,
99.12 except that the number of allowable shareholders or partners
99.13 under this subdivision shall not exceed 12.
99.14 (b) In addition to property specified in paragraph (a), any
99.15 other residences owned by corporations or partnerships described
99.16 in paragraph (a) which are located on agricultural land and
99.17 occupied as homesteads by shareholders or partners who are
99.18 actively engaged in farming on behalf of the corporation or
99.19 partnership must also be assessed as class 2a property or as
99.20 class 1b property under section 273.13, subdivision 22,
99.21 paragraph (b), but the property eligible is limited to the
99.22 residence itself and as much of the land surrounding the
99.23 homestead, not exceeding one acre, as is reasonably necessary
99.24 for the use of the dwelling as a home, and does not include any
99.25 other structures that may be located on it.
99.26 (c) Agricultural property owned by a shareholder of a
99.27 family farm corporation, as defined in paragraph (a), or by a
99.28 partner in a partnership operating a family farm and leased to
99.29 the family farm corporation by the shareholder or to the
99.30 partnership by the partner, is eligible for classification as
99.31 class 1b under section 273.13, subdivision 22, paragraph (b), or
99.32 class 2a under section 273.13, subdivision 23, paragraph (a), if
99.33 the owner is actually residing on the property and is actually
99.34 engaged in farming the land on behalf of the corporation or
99.35 partnership. This paragraph applies without regard to any legal
99.36 possession rights of the family farm corporation or partnership
100.1 operating a family farm under the lease.
100.2 Sec. 12. Minnesota Statutes 1998, section 273.124,
100.3 subdivision 13, is amended to read:
100.4 Subd. 13. [HOMESTEAD APPLICATION.] (a) A person who meets
100.5 the homestead requirements under subdivision 1 must file a
100.6 homestead application with the county assessor to initially
100.7 obtain homestead classification.
100.8 (b) On or before January 2, 1993, each county assessor
100.9 shall mail a homestead application to the owner of each parcel
100.10 of property within the county which was classified as homestead
100.11 for the 1992 assessment year. The format and contents of a
100.12 uniform homestead application shall be prescribed by the
100.13 commissioner of revenue. The commissioner shall consult with
100.14 the chairs of the house and senate tax committees on the
100.15 contents of the homestead application form. The application
100.16 must clearly inform the taxpayer that this application must be
100.17 signed by all owners who occupy the property or by the
100.18 qualifying relative and returned to the county assessor in order
100.19 for the property to continue receiving homestead treatment. The
100.20 envelope containing the homestead application shall clearly
100.21 identify its contents and alert the taxpayer of its necessary
100.22 immediate response.
100.23 (c) Every property owner applying for homestead
100.24 classification must furnish to the county assessor the social
100.25 security number of each occupant who is listed as an owner of
100.26 the property on the deed of record, the name and address of each
100.27 owner who does not occupy the property, and the name and social
100.28 security number of each owner's spouse who occupies the
100.29 property. The application must be signed by each owner who
100.30 occupies the property and by each owner's spouse who occupies
100.31 the property, or, in the case of property that qualifies as a
100.32 homestead under subdivision 1, paragraph (c), by the qualifying
100.33 relative.
100.34 If a property owner occupies a homestead, the property
100.35 owner's spouse may not claim another property as a homestead
100.36 unless the property owner and the property owner's spouse file
101.1 with the assessor an affidavit or other proof required by the
101.2 assessor stating that the property qualifies as a homestead
101.3 under subdivision 1, paragraph (e).
101.4 Owners or spouses occupying residences owned by their
101.5 spouses and previously occupied with the other spouse, either of
101.6 whom fail to include the other spouse's name and social security
101.7 number on the homestead application or provide the affidavits or
101.8 other proof requested, will be deemed to have elected to receive
101.9 only partial homestead treatment of their residence. The
101.10 remainder of the residence will be classified as nonhomestead
101.11 residential. When an owner or spouse's name and social security
101.12 number appear on homestead applications for two separate
101.13 residences and only one application is signed, the owner or
101.14 spouse will be deemed to have elected to homestead the residence
101.15 for which the application was signed.
101.16 The social security numbers or affidavits or other proofs
101.17 of the property owners and spouses are private data on
101.18 individuals as defined by section 13.02, subdivision 12, but,
101.19 notwithstanding that section, the private data may be disclosed
101.20 to the commissioner of revenue, or, for purposes of proceeding
101.21 under the Revenue Recapture Act to recover personal property
101.22 taxes owing, to the county treasurer.
101.23 (d) If residential real estate is occupied and used for
101.24 purposes of a homestead by a relative of the owner and qualifies
101.25 for a homestead under subdivision 1, paragraph (c), in order for
101.26 the property to receive homestead status, a homestead
101.27 application must be filed with the assessor. The social
101.28 security number of each relative occupying the property and the
101.29 social security number of each owner who is related to an
101.30 occupant of the property shall be required on the homestead
101.31 application filed under this subdivision. If a different
101.32 relative of the owner subsequently occupies the property, the
101.33 owner of the property must notify the assessor within 30 days of
101.34 the change in occupancy. The social security number of a
101.35 relative occupying the property is private data on individuals
101.36 as defined by section 13.02, subdivision 12, but may be
102.1 disclosed to the commissioner of revenue.
102.2 (e) The homestead application shall also notify the
102.3 property owners that the application filed under this section
102.4 will not be mailed annually and that if the property is granted
102.5 homestead status for the 1993 assessment, or any assessment year
102.6 thereafter, that same property shall remain classified as
102.7 homestead until the property is sold or transferred to another
102.8 person, or the owners, the spouse of the owner, or the relatives
102.9 no longer use the property as their homestead. Upon the sale or
102.10 transfer of the homestead property, a certificate of value must
102.11 be timely filed with the county auditor as provided under
102.12 section 272.115. Failure to notify the assessor within 30 days
102.13 that the property has been sold, transferred, or that the owner,
102.14 the spouse of the owner, or the relative is no longer occupying
102.15 the property as a homestead, shall result in the penalty
102.16 provided under this subdivision and the property will lose its
102.17 current homestead status.
102.18 (f) If the homestead application is not returned within 30
102.19 days, the county will send a second application to the present
102.20 owners of record. The notice of proposed property taxes
102.21 prepared under section 275.065, subdivision 3, shall reflect the
102.22 property's classification. Beginning with assessment year 1993
102.23 for all properties, if a homestead application has not been
102.24 filed with the county by December 15, the assessor shall
102.25 classify the property as nonhomestead for the current assessment
102.26 year for taxes payable in the following year, provided that the
102.27 owner may be entitled to receive the homestead classification by
102.28 proper application under section 375.192.
102.29 (g) At the request of the commissioner, each county must
102.30 give the commissioner a list that includes the name and social
102.31 security number of each property owner and the property owner's
102.32 spouse occupying the property, or relative of a property owner,
102.33 applying for homestead classification under this subdivision.
102.34 The commissioner shall use the information provided on the lists
102.35 as appropriate under the law, including for the detection of
102.36 improper claims by owners, or relatives of owners, under chapter
103.1 290A.
103.2 (h) If the commissioner finds that a property owner may be
103.3 claiming a fraudulent homestead, the commissioner shall notify
103.4 the appropriate counties. Within 90 days of the notification,
103.5 the county assessor shall investigate to determine if the
103.6 homestead classification was properly claimed. If the property
103.7 owner does not qualify, the county assessor shall notify the
103.8 county auditor who will determine the amount of homestead
103.9 benefits that had been improperly allowed. For the purpose of
103.10 this section, "homestead benefits" means the tax reduction
103.11 resulting from the classification as a homestead under section
103.12 273.13, the taconite homestead credit under section 273.135, and
103.13 the supplemental homestead credit under section 273.1391.
103.14 The county auditor shall send a notice to the person who
103.15 owned the affected property at the time the homestead
103.16 application related to the improper homestead was filed,
103.17 demanding reimbursement of the homestead benefits plus a penalty
103.18 equal to 100 percent of the homestead benefits. The person
103.19 notified may appeal the county's determination by serving copies
103.20 of a petition for review with county officials as provided in
103.21 section 278.01 and filing proof of service as provided in
103.22 section 278.01 with the Minnesota tax court within 60 days of
103.23 the date of the notice from the county. Procedurally, the
103.24 appeal is governed by the provisions in chapter 271 which apply
103.25 to the appeal of a property tax assessment or levy, but without
103.26 requiring any prepayment of the amount in controversy. If the
103.27 amount of homestead benefits and penalty is not paid within 60
103.28 days, and if no appeal has been filed, the county auditor shall
103.29 certify the amount of taxes and penalty to the county
103.30 treasurer. The county treasurer will add interest to the unpaid
103.31 homestead benefits and penalty amounts at the rate provided in
103.32 section 279.03 for real property taxes becoming delinquent in
103.33 the calendar year during which the amount remains unpaid.
103.34 Interest may be assessed for the period beginning 60 days after
103.35 demand for payment was made.
103.36 If the person notified is the current owner of the
104.1 property, the treasurer may add the total amount of benefits,
104.2 penalty, interest, and costs to the ad valorem taxes otherwise
104.3 payable on the property by including the amounts on the property
104.4 tax statements under section 276.04, subdivision 3. The amounts
104.5 added under this paragraph to the ad valorem taxes shall include
104.6 interest accrued through December 31 of the year preceding the
104.7 taxes payable year for which the amounts are first added. These
104.8 amounts, when added to the property tax statement, become
104.9 subject to all the laws for the enforcement of real or personal
104.10 property taxes for that year, and for any subsequent year.
104.11 If the person notified is not the current owner of the
104.12 property, the treasurer may collect the amounts due under the
104.13 Revenue Recapture Act in chapter 270A, or use any of the powers
104.14 granted in sections 277.20 and 277.21 without exclusion, to
104.15 enforce payment of the benefits, penalty, interest, and costs,
104.16 as if those amounts were delinquent tax obligations of the
104.17 person who owned the property at the time the application
104.18 related to the improperly allowed homestead was filed. The
104.19 treasurer may relieve a prior owner of personal liability for
104.20 the benefits, penalty, interest, and costs, and instead extend
104.21 those amounts on the tax lists against the property as provided
104.22 in this paragraph to the extent that the current owner agrees in
104.23 writing. On all demands, billings, property tax statements, and
104.24 related correspondence, the county must list and state
104.25 separately the amounts of homestead benefits, penalty, interest
104.26 and costs being demanded, billed or assessed.
104.27 (i) Any amount of homestead benefits recovered by the
104.28 county from the property owner shall be distributed to the
104.29 county, city or town, and school district where the property is
104.30 located in the same proportion that each taxing district's levy
104.31 was to the total of the three taxing districts' levy for the
104.32 current year. Any amount recovered attributable to taconite
104.33 homestead credit shall be transmitted to the St. Louis county
104.34 auditor to be deposited in the taconite property tax relief
104.35 account. Any amount recovered that is attributable to
104.36 supplemental homestead credit is to be transmitted to the
105.1 commissioner of revenue for deposit in the general fund of the
105.2 state treasury. The total amount of penalty collected must be
105.3 deposited in the county general fund.
105.4 (j) If a property owner has applied for more than one
105.5 homestead and the county assessors cannot determine which
105.6 property should be classified as homestead, the county assessors
105.7 will refer the information to the commissioner. The
105.8 commissioner shall make the determination and notify the
105.9 counties within 60 days.
105.10 (k) In addition to lists of homestead properties, the
105.11 commissioner may ask the counties to furnish lists of all
105.12 properties and the record owners. The social security numbers
105.13 and federal identification numbers that are maintained by a
105.14 county or city assessor for property tax administration
105.15 purposes, and that may appear on the lists retain their
105.16 classification as private or nonpublic data; but may be viewed,
105.17 accessed, and used by the county auditor or treasurer of the
105.18 same county for the limited purpose of assisting the
105.19 commissioner in the preparation of microdata samples under
105.20 section 270.0681.
105.21 Sec. 13. Minnesota Statutes 1998, section 273.124,
105.22 subdivision 14, is amended to read:
105.23 Subd. 14. [AGRICULTURAL HOMESTEADS; SPECIAL PROVISIONS.]
105.24 (a) Real estate of less than ten acres that is the homestead of
105.25 its owner must be classified as class 2a under section 273.13,
105.26 subdivision 23, paragraph (a), if:
105.27 (1) the parcel on which the house is located is contiguous
105.28 on at least two sides to (i) agricultural land, (ii) land owned
105.29 or administered by the United States Fish and Wildlife Service,
105.30 or (iii) land administered by the department of natural
105.31 resources on which in lieu taxes are paid under sections 477A.11
105.32 to 477A.14;
105.33 (2) its owner also owns a noncontiguous parcel of
105.34 agricultural land that is at least 20 acres;
105.35 (3) the noncontiguous land is located not farther than four
105.36 townships or cities, or a combination of townships or cities
106.1 from the homestead; and
106.2 (4) the agricultural use value of the noncontiguous land
106.3 and farm buildings is equal to at least 50 percent of the market
106.4 value of the house, garage, and one acre of land.
106.5 Homesteads initially classified as class 2a under the
106.6 provisions of this paragraph shall remain classified as class
106.7 2a, irrespective of subsequent changes in the use of adjoining
106.8 properties, as long as the homestead remains under the same
106.9 ownership, the owner owns a noncontiguous parcel of agricultural
106.10 land that is at least 20 acres, and the agricultural use value
106.11 qualifies under clause (4). Homestead classification under this
106.12 paragraph is limited to property that qualified under this
106.13 paragraph for the 1998 assessment.
106.14 (b) Agricultural property consisting of at least 40 acres
106.15 shall be classified homestead, to the same extent as other
106.16 agricultural homestead property, if all of the following
106.17 criteria are met:
106.18 (1) the owner is actively farming the agricultural
106.19 property;
106.20 (2) the owner of the agricultural property is a Minnesota
106.21 resident;
106.22 (3) neither the owner nor the spouse of the agricultural
106.23 property claims another agricultural homestead in Minnesota; and
106.24 (4) the owner does not live farther than four townships or
106.25 cities, or a combination of four townships or cities, from the
106.26 agricultural property.
106.27 (b) (c) Except as provided in paragraph (d) (e),
106.28 noncontiguous land shall be included as part of a homestead
106.29 under section 273.13, subdivision 23, paragraph (a), only if the
106.30 homestead is classified as class 2a and the detached land is
106.31 located in the same township or city, or not farther than four
106.32 townships or cities or combination thereof from the homestead.
106.33 Any taxpayer of these noncontiguous lands must notify the county
106.34 assessor that the noncontiguous land is part of the taxpayer's
106.35 homestead, and, if the homestead is located in another county,
106.36 the taxpayer must also notify the assessor of the other county.
107.1 (c) (d) Agricultural land used for purposes of a homestead
107.2 and actively farmed by a person holding a vested remainder
107.3 interest in it must be classified as a homestead under section
107.4 273.13, subdivision 23, paragraph (a). If agricultural land is
107.5 classified class 2a, any other dwellings on the land used for
107.6 purposes of a homestead by persons holding vested remainder
107.7 interests who are actively engaged in farming the property, and
107.8 up to one acre of the land surrounding each homestead and
107.9 reasonably necessary for the use of the dwelling as a home, must
107.10 also be assessed class 2a.
107.11 (d) (e) Agricultural land and buildings that were class 2a
107.12 homestead property under section 273.13, subdivision 23,
107.13 paragraph (a), for the 1997 assessment shall remain classified
107.14 as agricultural homesteads for subsequent assessments if:
107.15 (1) the property owner abandoned the homestead dwelling
107.16 located on the agricultural homestead as a result of the April
107.17 1997 floods;
107.18 (2) the property is located in the county of Polk, Clay,
107.19 Kittson, Marshall, Norman, or Wilkin;
107.20 (3) the agricultural land and buildings remain under the
107.21 same ownership for the current assessment year as existed for
107.22 the 1997 assessment year and continue to be used for
107.23 agricultural purposes;
107.24 (4) the dwelling occupied by the owner is located in
107.25 Minnesota and is within 30 miles of one of the parcels of
107.26 agricultural land that is owned by the taxpayer; and
107.27 (5) the owner notifies the county assessor that the
107.28 relocation was due to the 1997 floods, and the owner furnishes
107.29 the assessor any information deemed necessary by the assessor in
107.30 verifying the change in dwelling. Further notifications to the
107.31 assessor are not required if the property continues to meet all
107.32 the requirements in this paragraph and any dwellings on the
107.33 agricultural land remain uninhabited.
107.34 (e) (f) Agricultural land and buildings that were class 2a
107.35 homestead property under section 273.13, subdivision 23,
107.36 paragraph (a), for the 1998 assessment shall remain classified
108.1 agricultural homesteads for subsequent assessments if:
108.2 (1) the property owner abandoned the homestead dwelling
108.3 located on the agricultural homestead as a result of damage
108.4 caused by a March 29, 1998, tornado;
108.5 (2) the property is located in the county of Blue Earth,
108.6 Brown, Cottonwood, LeSueur, Nicollet, Nobles, or Rice;
108.7 (3) the agricultural land and buildings remain under the
108.8 same ownership for the current assessment year as existed for
108.9 the 1998 assessment year;
108.10 (4) the dwelling occupied by the owner is located in this
108.11 state and is within 50 miles of one of the parcels of
108.12 agricultural land that is owned by the taxpayer; and
108.13 (5) the owner notifies the county assessor that the
108.14 relocation was due to a March 29, 1998, tornado, and the owner
108.15 furnishes the assessor any information deemed necessary by the
108.16 assessor in verifying the change in homestead dwelling. For
108.17 taxes payable in 1999, the owner must notify the assessor by
108.18 December 1, 1998. Further notifications to the assessor are not
108.19 required if the property continues to meet all the requirements
108.20 in this paragraph and any dwellings on the agricultural land
108.21 remain uninhabited.
108.22 Sec. 14. Minnesota Statutes 1998, section 273.124, is
108.23 amended by adding a subdivision to read:
108.24 Subd. 20. [ADDITIONAL REQUIREMENTS PROHIBITED.] No
108.25 political subdivision may impose any requirements not contained
108.26 in this chapter or chapter 272 to disqualify property from being
108.27 classified as a homestead if the property otherwise meets the
108.28 requirements for homestead treatment under this chapter and
108.29 chapter 272.
108.30 Sec. 15. Minnesota Statutes 1998, section 273.13,
108.31 subdivision 22, is amended to read:
108.32 Subd. 22. [CLASS 1.] (a) Except as provided in subdivision
108.33 23, real estate which is residential and used for homestead
108.34 purposes is class 1. The market value of class 1a property must
108.35 be determined based upon the value of the house, garage, and
108.36 land.
109.1 The first $75,000 $76,000 of market value of class 1a
109.2 property has a net class rate of one percent of its market
109.3 value; and the market value of class 1a property that
109.4 exceeds $75,000 $76,000 has a class rate of 1.7 1.65 percent of
109.5 its market value.
109.6 (b) Class 1b property includes homestead real estate or
109.7 homestead manufactured homes used for the purposes of a
109.8 homestead by
109.9 (1) any blind person, or the blind person and the blind
109.10 person's spouse; or
109.11 (2) any person, hereinafter referred to as "veteran," who:
109.12 (i) served in the active military or naval service of the
109.13 United States; and
109.14 (ii) is entitled to compensation under the laws and
109.15 regulations of the United States for permanent and total
109.16 service-connected disability due to the loss, or loss of use, by
109.17 reason of amputation, ankylosis, progressive muscular
109.18 dystrophies, or paralysis, of both lower extremities, such as to
109.19 preclude motion without the aid of braces, crutches, canes, or a
109.20 wheelchair; and
109.21 (iii) has acquired a special housing unit with special
109.22 fixtures or movable facilities made necessary by the nature of
109.23 the veteran's disability, or the surviving spouse of the
109.24 deceased veteran for as long as the surviving spouse retains the
109.25 special housing unit as a homestead; or
109.26 (3) any person who:
109.27 (i) is permanently and totally disabled and
109.28 (ii) receives 90 percent or more of total household income,
109.29 as defined in section 290A.03, subdivision 5, from
109.30 (A) aid from any state as a result of that disability; or
109.31 (B) supplemental security income for the disabled; or
109.32 (C) workers' compensation based on a finding of total and
109.33 permanent disability; or
109.34 (D) social security disability, including the amount of a
109.35 disability insurance benefit which is converted to an old age
109.36 insurance benefit and any subsequent cost of living increases;
110.1 or
110.2 (E) aid under the federal Railroad Retirement Act of 1937,
110.3 United States Code Annotated, title 45, section 228b(a)5; or
110.4 (F) a pension from any local government retirement fund
110.5 located in the state of Minnesota as a result of that
110.6 disability; or
110.7 (G) pension, annuity, or other income paid as a result of
110.8 that disability from a private pension or disability plan,
110.9 including employer, employee, union, and insurance plans and
110.10 (iii) has household income as defined in section 290A.03,
110.11 subdivision 5, of $50,000 or less; or
110.12 (4) any person who is permanently and totally disabled and
110.13 whose household income as defined in section 290A.03,
110.14 subdivision 5, is 275 percent or less of the federal poverty
110.15 level.
110.16 Property is classified and assessed under clause (4) only
110.17 if the government agency or income-providing source certifies,
110.18 upon the request of the homestead occupant, that the homestead
110.19 occupant satisfies the disability requirements of this paragraph.
110.20 Property is classified and assessed pursuant to clause (1)
110.21 only if the commissioner of economic security certifies to the
110.22 assessor that the homestead occupant satisfies the requirements
110.23 of this paragraph.
110.24 Permanently and totally disabled for the purpose of this
110.25 subdivision means a condition which is permanent in nature and
110.26 totally incapacitates the person from working at an occupation
110.27 which brings the person an income. The first $32,000 market
110.28 value of class 1b property has a net class rate of .45 percent
110.29 of its market value. The remaining market value of class 1b
110.30 property has a net class rate using the rates for class 1 or
110.31 class 2a property, whichever is appropriate, of similar market
110.32 value.
110.33 (c) Class 1c property is commercial use real property that
110.34 abuts a lakeshore line and is devoted to temporary and seasonal
110.35 residential occupancy for recreational purposes but not devoted
110.36 to commercial purposes for more than 250 days in the year
111.1 preceding the year of assessment, and that includes a portion
111.2 used as a homestead by the owner, which includes a dwelling
111.3 occupied as a homestead by a shareholder of a corporation that
111.4 owns the resort or a partner in a partnership that owns the
111.5 resort, even if the title to the homestead is held by the
111.6 corporation or partnership. For purposes of this clause,
111.7 property is devoted to a commercial purpose on a specific day if
111.8 any portion of the property, excluding the portion used
111.9 exclusively as a homestead, is used for residential occupancy
111.10 and a fee is charged for residential occupancy. Class 1c
111.11 property has a class rate of one percent of total market value
111.12 with the following limitation: the area of the property must
111.13 not exceed 100 feet of lakeshore footage for each cabin or
111.14 campsite located on the property up to a total of 800 feet and
111.15 500 feet in depth, measured away from the lakeshore. If any
111.16 portion of the class 1c resort property is classified as class
111.17 4c under subdivision 25, the entire property must meet the
111.18 requirements of subdivision 25, paragraph (d), clause (1), to
111.19 qualify for class 1c treatment under this paragraph.
111.20 (d) Class 1d property includes structures that meet all of
111.21 the following criteria:
111.22 (1) the structure is located on property that is classified
111.23 as agricultural property under section 273.13, subdivision 23;
111.24 (2) the structure is occupied exclusively by seasonal farm
111.25 workers during the time when they work on that farm, and the
111.26 occupants are not charged rent for the privilege of occupying
111.27 the property, provided that use of the structure for storage of
111.28 farm equipment and produce does not disqualify the property from
111.29 classification under this paragraph;
111.30 (3) the structure meets all applicable health and safety
111.31 requirements for the appropriate season; and
111.32 (4) the structure is not salable as residential property
111.33 because it does not comply with local ordinances relating to
111.34 location in relation to streets or roads.
111.35 The market value of class 1d property has the same class
111.36 rates as class 1a property under paragraph (a).
112.1 Sec. 16. Minnesota Statutes 1998, section 273.13,
112.2 subdivision 23, is amended to read:
112.3 Subd. 23. [CLASS 2.] (a) Class 2a property is agricultural
112.4 land including any improvements that is homesteaded. The market
112.5 value of the house and garage and immediately surrounding one
112.6 acre of land has the same class rates as class 1a property under
112.7 subdivision 22. The value of the remaining land including
112.8 improvements up to $115,000 has a net class rate of 0.35 percent
112.9 of market value. The remaining value of class 2a property over
112.10 $115,000 of market value that does not exceed 320 acres up to
112.11 and including $600,000 market value has a net class rate of 0.8
112.12 percent of market value. The remaining property
112.13 over $115,000 $600,000 market value in excess of 320 acres has a
112.14 class rate of 1.25 1.20 percent of market value.
112.15 (b) Class 2b property is (1) real estate, rural in
112.16 character and used exclusively for growing trees for timber,
112.17 lumber, and wood and wood products; (2) real estate that is not
112.18 improved with a structure and is used exclusively for growing
112.19 trees for timber, lumber, and wood and wood products, if the
112.20 owner has participated or is participating in a cost-sharing
112.21 program for afforestation, reforestation, or timber stand
112.22 improvement on that particular property, administered or
112.23 coordinated by the commissioner of natural resources; (3) real
112.24 estate that is nonhomestead agricultural land; or (4) a landing
112.25 area or public access area of a privately owned public use
112.26 airport. Class 2b property has a net class rate of 1.25 1.20
112.27 percent of market value.
112.28 (c) Agricultural land as used in this section means
112.29 contiguous acreage of ten acres or more, used during the
112.30 preceding year for agricultural purposes. "Agricultural
112.31 purposes" as used in this section means the raising or
112.32 cultivation of agricultural products or enrollment in the
112.33 Reinvest in Minnesota program under sections 103F.501 to
112.34 103F.535 or the federal Conservation Reserve Program as
112.35 contained in Public Law Number 99-198. Contiguous acreage on
112.36 the same parcel, or contiguous acreage on an immediately
113.1 adjacent parcel under the same ownership, may also qualify as
113.2 agricultural land, but only if it is pasture, timber, waste,
113.3 unusable wild land, or land included in state or federal farm
113.4 programs. Agricultural classification for property shall be
113.5 determined excluding the house, garage, and immediately
113.6 surrounding one acre of land, and shall not be based upon the
113.7 market value of any residential structures on the parcel or
113.8 contiguous parcels under the same ownership.
113.9 (d) Real estate, excluding the house, garage, and
113.10 immediately surrounding one acre of land, of less than ten acres
113.11 which is exclusively and intensively used for raising or
113.12 cultivating agricultural products, shall be considered as
113.13 agricultural land.
113.14 Land shall be classified as agricultural even if all or a
113.15 portion of the agricultural use of that property is the leasing
113.16 to, or use by another person for agricultural purposes.
113.17 Classification under this subdivision is not determinative
113.18 for qualifying under section 273.111.
113.19 The property classification under this section supersedes,
113.20 for property tax purposes only, any locally administered
113.21 agricultural policies or land use restrictions that define
113.22 minimum or maximum farm acreage.
113.23 (e) The term "agricultural products" as used in this
113.24 subdivision includes production for sale of:
113.25 (1) livestock, dairy animals, dairy products, poultry and
113.26 poultry products, fur-bearing animals, horticultural and nursery
113.27 stock described in sections 18.44 to 18.61, fruit of all kinds,
113.28 vegetables, forage, grains, bees, and apiary products by the
113.29 owner;
113.30 (2) fish bred for sale and consumption if the fish breeding
113.31 occurs on land zoned for agricultural use;
113.32 (3) the commercial boarding of horses if the boarding is
113.33 done in conjunction with raising or cultivating agricultural
113.34 products as defined in clause (1);
113.35 (4) property which is owned and operated by nonprofit
113.36 organizations used for equestrian activities, excluding racing;
114.1 and
114.2 (5) game birds and waterfowl bred and raised for use on a
114.3 shooting preserve licensed under section 97A.115;
114.4 (6) insects primarily bred to be used as food for animals;
114.5 and
114.6 (7) trees, grown for sale as a crop, and not sold for
114.7 timber, lumber, wood, or wood products.
114.8 (f) If a parcel used for agricultural purposes is also used
114.9 for commercial or industrial purposes, including but not limited
114.10 to:
114.11 (1) wholesale and retail sales;
114.12 (2) processing of raw agricultural products or other goods;
114.13 (3) warehousing or storage of processed goods; and
114.14 (4) office facilities for the support of the activities
114.15 enumerated in clauses (1), (2), and (3),
114.16 the assessor shall classify the part of the parcel used for
114.17 agricultural purposes as class 1b, 2a, or 2b, whichever is
114.18 appropriate, and the remainder in the class appropriate to its
114.19 use. The grading, sorting, and packaging of raw agricultural
114.20 products for first sale is considered an agricultural purpose.
114.21 A greenhouse or other building where horticultural or nursery
114.22 products are grown that is also used for the conduct of retail
114.23 sales must be classified as agricultural if it is primarily used
114.24 for the growing of horticultural or nursery products from seed,
114.25 cuttings, or roots and occasionally as a showroom for the retail
114.26 sale of those products. Use of a greenhouse or building only
114.27 for the display of already grown horticultural or nursery
114.28 products does not qualify as an agricultural purpose.
114.29 The assessor shall determine and list separately on the
114.30 records the market value of the homestead dwelling and the one
114.31 acre of land on which that dwelling is located. If any farm
114.32 buildings or structures are located on this homesteaded acre of
114.33 land, their market value shall not be included in this separate
114.34 determination.
114.35 (g) To qualify for classification under paragraph (b),
114.36 clause (4), a privately owned public use airport must be
115.1 licensed as a public airport under section 360.018. For
115.2 purposes of paragraph (b), clause (4), "landing area" means that
115.3 part of a privately owned public use airport properly cleared,
115.4 regularly maintained, and made available to the public for use
115.5 by aircraft and includes runways, taxiways, aprons, and sites
115.6 upon which are situated landing or navigational aids. A landing
115.7 area also includes land underlying both the primary surface and
115.8 the approach surfaces that comply with all of the following:
115.9 (i) the land is properly cleared and regularly maintained
115.10 for the primary purposes of the landing, taking off, and taxiing
115.11 of aircraft; but that portion of the land that contains
115.12 facilities for servicing, repair, or maintenance of aircraft is
115.13 not included as a landing area;
115.14 (ii) the land is part of the airport property; and
115.15 (iii) the land is not used for commercial or residential
115.16 purposes.
115.17 The land contained in a landing area under paragraph (b), clause
115.18 (4), must be described and certified by the commissioner of
115.19 transportation. The certification is effective until it is
115.20 modified, or until the airport or landing area no longer meets
115.21 the requirements of paragraph (b), clause (4). For purposes of
115.22 paragraph (b), clause (4), "public access area" means property
115.23 used as an aircraft parking ramp, apron, or storage hangar, or
115.24 an arrival and departure building in connection with the airport.
115.25 Sec. 17. Minnesota Statutes 1998, section 273.13,
115.26 subdivision 24, is amended to read:
115.27 Subd. 24. [CLASS 3.] (a) Commercial and industrial
115.28 property and utility real and personal property, except class 5
115.29 property as identified in subdivision 31, clause (1), is class
115.30 3a. Each parcel of real property has a class rate of 2.45 2.4
115.31 percent of the first tier of market value, and 3.5 3.4 percent
115.32 of the remaining market value, except that in the case of
115.33 contiguous parcels of commercial and industrial property owned
115.34 by the same person or entity, only the value equal to the
115.35 first-tier value of the contiguous parcels qualifies for the
115.36 reduced class rate. For the purposes of this subdivision, the
116.1 first tier means the first $150,000 of market value. In the
116.2 case of utility property owned by one person or entity, only one
116.3 parcel in each county has a reduced class rate on the first tier
116.4 of market value. Real property owned in fee by a utility for
116.5 transmission line right-of-way shall be classified at the class
116.6 rate for the higher tier. All personal property shall be
116.7 classified at the class rate for the higher tier. For purposes
116.8 of this subdivision "personal property" means tools, implements,
116.9 and machinery of an electric generating, transmission, or
116.10 distribution system, or a pipeline system transporting or
116.11 distributing water, gas, crude oil, or petroleum products or
116.12 mains and pipes used in the distribution of steam or hot or
116.13 chilled water for heating or cooling buildings, which are
116.14 fixtures.
116.15 For purposes of this paragraph, parcels are considered to
116.16 be contiguous even if they are separated from each other by a
116.17 road, street, vacant lot, waterway, or other similar intervening
116.18 type of property.
116.19 (b) Employment property defined in section 469.166, during
116.20 the period provided in section 469.170, shall constitute class
116.21 3b and has a class rate of 2.3 percent of the first $50,000 of
116.22 market value and 3.5 percent of the remainder, except that for
116.23 employment property located in a border city enterprise zone
116.24 designated pursuant to section 469.168, subdivision 4, paragraph
116.25 (c),. The class rate of the first tier of market value and the
116.26 class rate of the remainder is rates for class 3b property are
116.27 determined under paragraph (a), unless the governing body of the
116.28 city designated as an enterprise zone determines that a specific
116.29 parcel shall be assessed pursuant to the first clause of this
116.30 sentence. The governing body may provide for assessment under
116.31 the first clause of the preceding sentence only for property
116.32 which is located in an area which has been designated by the
116.33 governing body for the receipt of tax reductions authorized by
116.34 section 469.171, subdivision 1.
116.35 (c)(1) Subject to the limitations of clause (2), structures
116.36 which are (i) located on property classified as class 3a, (ii)
117.1 constructed under an initial building permit issued after
117.2 January 2, 1996, (iii) located in a transit zone as defined
117.3 under section 473.3915, subdivision 3, (iv) located within the
117.4 boundaries of a school district, and (v) not primarily used for
117.5 retail or transient lodging purposes, shall have a class rate
117.6 equal to 85 percent of to the lesser of 2.975 percent or the
117.7 class rate of the second tier of the commercial property rate
117.8 under paragraph (a) on any portion of the market value that does
117.9 not qualify for the first tier class rate under paragraph (a).
117.10 As used in item (v), a structure is primarily used for retail or
117.11 transient lodging purposes if over 50 percent of its square
117.12 footage is used for those purposes. A class rate equal to 85
117.13 percent of the lesser of 2.975 percent or the class rate of the
117.14 second tier of the commercial property class rate under
117.15 paragraph (a) shall also apply to improvements to existing
117.16 structures that meet the requirements of items (i) to (v) if the
117.17 improvements are constructed under an initial building permit
117.18 issued after January 2, 1996, even if the remainder of the
117.19 structure was constructed prior to January 2, 1996. For the
117.20 purposes of this paragraph, a structure shall be considered to
117.21 be located in a transit zone if any portion of the structure
117.22 lies within the zone. If any property once eligible for
117.23 treatment under this paragraph ceases to remain eligible due to
117.24 revisions in transit zone boundaries, the property shall
117.25 continue to receive treatment under this paragraph for a period
117.26 of three years.
117.27 (2) This clause applies to any structure qualifying for the
117.28 transit zone reduced class rate under clause (1) on January 2,
117.29 1999, or any structure meeting any of the qualification criteria
117.30 in item (i) and otherwise qualifying for the transit zone
117.31 reduced class rate under clause (1). Such a structure continues
117.32 to receive the transit zone reduced class rate until the
117.33 occurrence of one of the events in item (ii). Property
117.34 qualifying under item (i)(D), that is located outside of a city
117.35 of the first class, qualifies for the transit zone reduced class
117.36 rate as provided in that item. Property qualifying under item
118.1 (i)(E) qualifies for the transit zone reduced class rate as
118.2 provided in that item.
118.3 (i) A structure qualifies for the rate in this clause if it
118.4 is:
118.5 (A) property for which a building permit was issued before
118.6 December 31, 1998; or
118.7 (B) property for which a building permit was issued before
118.8 June 30, 2001, if:
118.9 (I) at least 50 percent of the land on which the structure
118.10 is to be built has been acquired or is the subject of signed
118.11 purchase agreements or signed options as of March 15, 1998, by
118.12 the entity that proposes construction of the project or an
118.13 affiliate of the entity;
118.14 (II) signed agreements have been entered into with one
118.15 entity or with affiliated entities to lease for the account of
118.16 the entity or affiliated entities at least 50 percent of the
118.17 square footage of the structure or the owner of the structure
118.18 will occupy at least 50 percent of the square footage of the
118.19 structure; and
118.20 (III) one of the following requirements is met:
118.21 the project proposer has submitted the completed data
118.22 portions of an environmental assessment worksheet by December
118.23 31, 1998; or
118.24 a notice of determination of adequacy of an environmental
118.25 impact statement has been published by April 1, 1999; or
118.26 an alternative urban areawide review has been completed by
118.27 April 1, 1999; or
118.28 (C) property for which a building permit is issued before
118.29 July 30, 1999, if:
118.30 (I) at least 50 percent of the land on which the structure
118.31 is to be built has been acquired or is the subject of signed
118.32 purchase agreements as of March 31, 1998, by the entity that
118.33 proposes construction of the project or an affiliate of the
118.34 entity;
118.35 (II) a signed agreement has been entered into between the
118.36 building developer and a tenant to lease for its own account at
119.1 least 200,000 square feet of space in the building;
119.2 (III) a signed letter of intent is entered into by July 1,
119.3 1998, between the building developer and the tenant to lease the
119.4 space for its own account; and
119.5 (IV) the environmental review process required by state law
119.6 was commenced by December 31, 1998;
119.7 (D) property for which an irrevocable letter of credit with
119.8 a housing and redevelopment authority was signed before December
119.9 31, 1998. The structure shall receive the transit zone reduced
119.10 class rate during construction and for the duration of time that
119.11 the original tenants remain in the building. Any unoccupied net
119.12 leasable square footage that is not leased within 36 months
119.13 after the certificate of occupancy has been issued for the
119.14 building shall not be eligible to receive the reduced class
119.15 rate. This reduced class rate applies only if the entity that
119.16 constructed the structure continues to own the property;
119.17 (E) property, located in a city of the first class, and for
119.18 which the building permits for the excavation, the parking ramp,
119.19 and the office tower were issued prior to April 1, 1999, shall
119.20 receive the reduced class rate during construction and for the
119.21 first five assessment years immediately following its initial
119.22 occupancy provided that, when completed, at least 25 percent of
119.23 the net leasable square footage must be occupied by the entity
119.24 or the parent entity constructing the structure each year during
119.25 this time period. In order to receive the reduced class rate on
119.26 the structure in any subsequent assessment years, at least 50
119.27 percent of the rentable square footage must be occupied by the
119.28 entity or the parent entity that constructed the structure.
119.29 This reduced class rate applies only if the entity or the parent
119.30 entity that constructed the structure continues to own the
119.31 property.
119.32 (ii) A structure specified by this clause, other than a
119.33 structure qualifying under clause (i)(D) or (E), shall continue
119.34 to receive the transit zone reduced class rate until the
119.35 occurrence of one of the following events:
119.36 (A) if the structure upon initial occupancy will be owner
120.1 occupied by the entity initially constructing the structure or
120.2 an affiliated entity, the structure receives the reduced class
120.3 rate until the structure ceases to be at least 50 percent
120.4 occupied by the entity or an affiliated entity, provided, if the
120.5 portion of the structure occupied by that entity or an affiliate
120.6 of the entity is less than 85 percent, the transit zone class
120.7 rate reduction for the portion of structure not so occupied
120.8 terminates upon the leasing of such space to any nonaffiliated
120.9 entity; or
120.10 (B) if the structure is leased by a single entity or
120.11 affiliated entity at the time of initial occupancy, the
120.12 structure shall receive the reduced class rate until the
120.13 structure ceases to be at least 50 percent occupied by the
120.14 entity or an affiliated entity, provided, if the portion of the
120.15 structure occupied by that entity or an affiliate of the entity
120.16 is less than 85 percent, the transit zone class rate reduction
120.17 for the portion of structure not so occupied shall terminate
120.18 upon the leasing of such space to any nonaffiliated entity; or
120.19 (C) if the structure meets the criteria in item (i)(C), the
120.20 structure shall receive the reduced class rate until the
120.21 expiration of the initial lease term of the applicable tenants.
120.22 Percentages occupied or leased shall be determined based
120.23 upon net leasable square footage in the structure. The assessor
120.24 shall allocate the value of the structure in the same fashion as
120.25 provided in the general law for portions of any structure
120.26 receiving and not receiving the transit tax class reduction as a
120.27 result of this clause.
120.28 Sec. 18. Minnesota Statutes 1998, section 273.13, is
120.29 amended by adding a subdivision to read:
120.30 Subd. 24a. [TRANSIT ZONE PROPERTIES; PERSONAL PROPERTY
120.31 TAX.] (a) Notwithstanding the provisions of section 272.02 or
120.32 any other law to the contrary, a personal property tax is
120.33 imposed on the leasehold of a tenant of a structure described in
120.34 subdivision 24, paragraph (c), clause (2), item (i)(C).
120.35 (b) The tax equals the amount obtained by multiplying the
120.36 sum of the local tax rates by:
121.1 (1) the estimated market value of the structure multiplied
121.2 by
121.3 (2) the square footage of the structure under lease that
121.4 qualifies under subdivision 24, clause (c)(1), divided by
121.5 (3) the total square footage of the structure that
121.6 qualifies under subdivision 24, clause (c)(1), multiplied by
121.7 (4) the difference between the class rate under subdivision
121.8 24, paragraph (a), for the second tier and the class rate under
121.9 subdivision 24, paragraph (c), for the second tier for the
121.10 qualifying parts of a structure.
121.11 (c) The tax under this subdivision does not apply to a
121.12 lease that:
121.13 (1) was executed before May 1, 1999;
121.14 (2) was entered according to a binding written agreement
121.15 executed before May 1, 1999; or
121.16 (3) is a lease entered under an expansion option contained
121.17 in a lease or binding written agreement qualifying under clause
121.18 (1) or (2).
121.19 (d) The tax imposed under this subdivision is a personal
121.20 property tax and is imposed on the lessee or tenant and not on
121.21 the structure or the real property. The tax is an obligation of
121.22 the lessee or tenant and must be collected in the manner
121.23 provided for personal property taxes.
121.24 (e) The personal property tax applies only to a year in
121.25 which the leased structure qualifies for the transit zone class
121.26 rate.
121.27 Sec. 19. Minnesota Statutes 1998, section 273.13,
121.28 subdivision 25, is amended to read:
121.29 Subd. 25. [CLASS 4.] (a) Class 4a is residential real
121.30 estate containing four or more units and used or held for use by
121.31 the owner or by the tenants or lessees of the owner as a
121.32 residence for rental periods of 30 days or more. Class 4a also
121.33 includes hospitals licensed under sections 144.50 to 144.56,
121.34 other than hospitals exempt under section 272.02, and contiguous
121.35 property used for hospital purposes, without regard to whether
121.36 the property has been platted or subdivided. Class 4a property
122.1 in a city with a population of 5,000 or less, that is (1)
122.2 located outside of the metropolitan area, as defined in section
122.3 473.121, subdivision 2, or outside any county contiguous to the
122.4 metropolitan area, and (2) whose city boundary is at least 15
122.5 miles from the boundary of any city with a population greater
122.6 than 5,000 has a class rate of 2.15 percent of market value.
122.7 All other class 4a property has a class rate of 2.5 2.4 percent
122.8 of market value. For purposes of this paragraph, population has
122.9 the same meaning given in section 477A.011, subdivision 3.
122.10 (b) Class 4b includes:
122.11 (1) residential real estate containing less than four units
122.12 that does not qualify as class 4bb, other than seasonal
122.13 residential, and recreational;
122.14 (2) manufactured homes not classified under any other
122.15 provision;
122.16 (3) a dwelling, garage, and surrounding one acre of
122.17 property on a nonhomestead farm classified under subdivision 23,
122.18 paragraph (b) containing two or three units;
122.19 (4) unimproved property that is classified residential as
122.20 determined under subdivision 33.
122.21 Class 4b property has a class rate of 1.7 1.65 percent of
122.22 market value.
122.23 (c) Class 4bb includes:
122.24 (1) nonhomestead residential real estate containing one
122.25 unit, other than seasonal residential, and recreational; and
122.26 (2) a single family dwelling, garage, and surrounding one
122.27 acre of property on a nonhomestead farm classified under
122.28 subdivision 23, paragraph (b).
122.29 Class 4bb has a class rate of 1.25 1.2 percent on the
122.30 first $75,000 $76,000 of market value and a class rate of 1.7
122.31 1.65 percent of its market value that exceeds $75,000 $76,000.
122.32 Property that has been classified as seasonal recreational
122.33 residential property at any time during which it has been owned
122.34 by the current owner or spouse of the current owner does not
122.35 qualify for class 4bb.
122.36 (d) Class 4c property includes:
123.1 (1) except as provided in subdivision 22, paragraph (c),
123.2 real property devoted to temporary and seasonal residential
123.3 occupancy for recreation purposes, including real property
123.4 devoted to temporary and seasonal residential occupancy for
123.5 recreation purposes and not devoted to commercial purposes for
123.6 more than 250 days in the year preceding the year of
123.7 assessment. For purposes of this clause, property is devoted to
123.8 a commercial purpose on a specific day if any portion of the
123.9 property is used for residential occupancy, and a fee is charged
123.10 for residential occupancy. In order for a property to be
123.11 classified as class 4c, seasonal recreational residential for
123.12 commercial purposes, at least 40 percent of the annual gross
123.13 lodging receipts related to the property must be from business
123.14 conducted during 90 consecutive days and either (i) at least 60
123.15 percent of all paid bookings by lodging guests during the year
123.16 must be for periods of at least two consecutive nights; or (ii)
123.17 at least 20 percent of the annual gross receipts must be from
123.18 charges for rental of fish houses, boats and motors,
123.19 snowmobiles, downhill or cross-country ski equipment, or charges
123.20 for marina services, launch services, and guide services, or the
123.21 sale of bait and fishing tackle. For purposes of this
123.22 determination, a paid booking of five or more nights shall be
123.23 counted as two bookings. Class 4c also includes commercial use
123.24 real property used exclusively for recreational purposes in
123.25 conjunction with class 4c property devoted to temporary and
123.26 seasonal residential occupancy for recreational purposes, up to
123.27 a total of two acres, provided the property is not devoted to
123.28 commercial recreational use for more than 250 days in the year
123.29 preceding the year of assessment and is located within two miles
123.30 of the class 4c property with which it is used. Class 4c
123.31 property classified in this clause also includes the remainder
123.32 of class 1c resorts provided that the entire property including
123.33 that portion of the property classified as class 1c also meets
123.34 the requirements for class 4c under this clause; otherwise the
123.35 entire property is classified as class 3. Owners of real
123.36 property devoted to temporary and seasonal residential occupancy
124.1 for recreation purposes and all or a portion of which was
124.2 devoted to commercial purposes for not more than 250 days in the
124.3 year preceding the year of assessment desiring classification as
124.4 class 1c or 4c, must submit a declaration to the assessor
124.5 designating the cabins or units occupied for 250 days or less in
124.6 the year preceding the year of assessment by January 15 of the
124.7 assessment year. Those cabins or units and a proportionate
124.8 share of the land on which they are located will be designated
124.9 class 1c or 4c as otherwise provided. The remainder of the
124.10 cabins or units and a proportionate share of the land on which
124.11 they are located will be designated as class 3a. The owner of
124.12 property desiring designation as class 1c or 4c property must
124.13 provide guest registers or other records demonstrating that the
124.14 units for which class 1c or 4c designation is sought were not
124.15 occupied for more than 250 days in the year preceding the
124.16 assessment if so requested. The portion of a property operated
124.17 as a (1) restaurant, (2) bar, (3) gift shop, and (4) other
124.18 nonresidential facility operated on a commercial basis not
124.19 directly related to temporary and seasonal residential occupancy
124.20 for recreation purposes shall not qualify for class 1c or 4c;
124.21 (2) qualified property used as a golf course if:
124.22 (i) it is open to the public on a daily fee basis. It may
124.23 charge membership fees or dues, but a membership fee may not be
124.24 required in order to use the property for golfing, and its green
124.25 fees for golfing must be comparable to green fees typically
124.26 charged by municipal courses; and
124.27 (ii) it meets the requirements of section 273.112,
124.28 subdivision 3, paragraph (d).
124.29 A structure used as a clubhouse, restaurant, or place of
124.30 refreshment in conjunction with the golf course is classified as
124.31 class 3a property.
124.32 (3) real property up to a maximum of one acre of land owned
124.33 by a nonprofit community service oriented organization; provided
124.34 that the property is not used for a revenue-producing activity
124.35 for more than six days in the calendar year preceding the year
124.36 of assessment and the property is not used for residential
125.1 purposes on either a temporary or permanent basis. For purposes
125.2 of this clause, a "nonprofit community service oriented
125.3 organization" means any corporation, society, association,
125.4 foundation, or institution organized and operated exclusively
125.5 for charitable, religious, fraternal, civic, or educational
125.6 purposes, and which is exempt from federal income taxation
125.7 pursuant to section 501(c)(3), (10), or (19) of the Internal
125.8 Revenue Code of 1986, as amended through December 31, 1990. For
125.9 purposes of this clause, "revenue-producing activities" shall
125.10 include but not be limited to property or that portion of the
125.11 property that is used as an on-sale intoxicating liquor or 3.2
125.12 percent malt liquor establishment licensed under chapter 340A, a
125.13 restaurant open to the public, bowling alley, a retail store,
125.14 gambling conducted by organizations licensed under chapter 349,
125.15 an insurance business, or office or other space leased or rented
125.16 to a lessee who conducts a for-profit enterprise on the
125.17 premises. Any portion of the property which is used for
125.18 revenue-producing activities for more than six days in the
125.19 calendar year preceding the year of assessment shall be assessed
125.20 as class 3a. The use of the property for social events open
125.21 exclusively to members and their guests for periods of less than
125.22 24 hours, when an admission is not charged nor any revenues are
125.23 received by the organization shall not be considered a
125.24 revenue-producing activity;
125.25 (4) post-secondary student housing of not more than one
125.26 acre of land that is owned by a nonprofit corporation organized
125.27 under chapter 317A and is used exclusively by a student
125.28 cooperative, sorority, or fraternity for on-campus housing or
125.29 housing located within two miles of the border of a college
125.30 campus;
125.31 (5) manufactured home parks as defined in section 327.14,
125.32 subdivision 3; and
125.33 (6) real property that is actively and exclusively devoted
125.34 to indoor fitness, health, social, recreational, and related
125.35 uses, is owned and operated by a not-for-profit corporation, and
125.36 is located within the metropolitan area as defined in section
126.1 473.121, subdivision 2.
126.2 Class 4c property has a class rate of 1.8 1.65 percent of
126.3 market value, except that (i) for each parcel of seasonal
126.4 residential recreational property not used for commercial
126.5 purposes the first $75,000 of market value has a class rate of
126.6 1.25 percent, and the market value that exceeds $75,000 has a
126.7 class rate of 2.2 percent has the same class rates as class 4bb
126.8 property, (ii) manufactured home parks assessed under clause (5)
126.9 have a the same class rate of two percent as class 4b property,
126.10 and (iii) property described in paragraph (d), clause (4), has
126.11 the same class rate as the rate applicable to the first tier of
126.12 class 4bb nonhomestead residential real estate under paragraph
126.13 (c).
126.14 (e) Class 4d property is qualifying low-income rental
126.15 housing certified to the assessor by the housing finance agency
126.16 under sections 273.126 and 462A.071. Class 4d includes land in
126.17 proportion to the total market value of the building that is
126.18 qualifying low-income rental housing. For all properties
126.19 qualifying as class 4d, the market value determined by the
126.20 assessor must be based on the normal approach to value using
126.21 normal unrestricted rents.
126.22 Class 4d property has a class rate of one percent of market
126.23 value.
126.24 (f) Class 4e property consists of the residential portion
126.25 of any structure located within a city that was converted from
126.26 nonresidential use to residential use, provided that:
126.27 (1) the structure had formerly been used as a warehouse;
126.28 (2) the structure was originally constructed prior to 1940;
126.29 (3) the conversion was done after December 31, 1995, but
126.30 before January 1, 2003; and
126.31 (4) the conversion involved an investment of at least
126.32 $25,000 per residential unit.
126.33 Class 4e property has a class rate of 2.3 percent, provided
126.34 that a structure is eligible for class 4e classification only in
126.35 the 12 assessment years immediately following the conversion.
126.36 Sec. 20. Minnesota Statutes 1998, section 273.13,
127.1 subdivision 31, is amended to read:
127.2 Subd. 31. [CLASS 5.] Class 5 property includes:
127.3 (1) tools, implements, and machinery of an electric
127.4 generating, transmission, or distribution system or a pipeline
127.5 system transporting or distributing water, gas, crude oil, or
127.6 petroleum products or mains and pipes used in the distribution
127.7 of steam or hot or chilled water for heating or cooling
127.8 buildings, which are fixtures;
127.9 (2) unmined iron ore and low-grade iron-bearing formations
127.10 as defined in section 273.14; and
127.11 (3) (2) all other property not otherwise classified.
127.12 Class 5 property has a class rate of 3.5 3.4 percent of
127.13 market value.
127.14 Sec. 21. Minnesota Statutes 1998, section 273.1382, is
127.15 amended to read:
127.16 273.1382 [EDUCATION HOMESTEAD CREDIT; EDUCATION
127.17 AGRICULTURAL CREDIT.]
127.18 Subdivision 1. [EDUCATION HOMESTEAD CREDIT TAX RATE.] Each
127.19 year, the respective county auditors shall determine the initial
127.20 tax rate for each school district for the general education levy
127.21 certified under section 126C.13, subdivision 2 or 3. That rate
127.22 plus the school district's education homestead credit tax rate
127.23 adjustment under section 275.08, subdivision 1e, shall be the
127.24 general education homestead credit local tax rate for the
127.25 district. The
127.26 Subd. 1a. [EDUCATION HOMESTEAD CREDIT.] Each county
127.27 auditor shall then determine a general education homestead
127.28 credit for each homestead within the county equal to 68 66.2
127.29 percent for taxes payable in 1999 and 69 83 percent for taxes
127.30 payable in 2000 and thereafter of the general education
127.31 homestead credit local tax rate times the net tax capacity of
127.32 the homestead for the taxes payable year. The amount of general
127.33 education homestead credit for a homestead may not exceed $320
127.34 for taxes payable in 1999 and $335 $390 for taxes payable in
127.35 2000 and thereafter. In the case of an agricultural homestead,
127.36 only the net tax capacity of the house, garage, and surrounding
128.1 one acre of land shall be used in determining the property's
128.2 education homestead credit.
128.3 Subd. 1a. [CREDIT PERCENTAGE REDUCTION.] If the general
128.4 education levy target for fiscal year 2000 or 2001 is increased
128.5 by another law enacted prior to the 1999 legislative session,
128.6 the commissioner of revenue shall adjust the percentage rates of
128.7 the education homestead credit for the corresponding taxes
128.8 payable year by multiplying the percentage rate by the ratio of
128.9 the prior general education levy target to the current general
128.10 education levy target. If an adjustment is made under this
128.11 section for fiscal year 2001, the adjusted rate shall remain in
128.12 effect for future years until amended by subsequent legislation.
128.13 Subd. 1b. [EDUCATION AGRICULTURAL CREDIT.] Property
128.14 classified as class 2a agricultural homestead or class 2b
128.15 agricultural nonhomestead or timberland is eligible for
128.16 education agricultural credit. The credit is equal to 54
128.17 percent, in the case of agricultural homestead property, or 50
128.18 percent, in the case of agricultural nonhomestead property or
128.19 timberland, of the property's net tax capacity times the
128.20 education credit tax rate determined in subdivision 1. The net
128.21 tax capacity of class 2a property attributable to the house,
128.22 garage, and surrounding one acre of land is not eligible for the
128.23 credit under this subdivision.
128.24 Subd. 2. [CREDIT REIMBURSEMENTS.] (a) The commissioner of
128.25 revenue shall determine the tax reductions allowed under this
128.26 section for each taxes payable year, and for each school
128.27 district based upon a review of the abstracts of tax lists
128.28 submitted by the county auditors under section 275.29, and from
128.29 any other information which the commissioner deems relevant.
128.30 The commissioner of revenue shall generally compute the tax
128.31 reductions at the unique taxing jurisdiction level, however the
128.32 commissioner may compute the tax reductions at a higher
128.33 geographic level if that would have a negligible impact, or if
128.34 changes in the composition of unique taxing jurisdictions do not
128.35 permit computation at the unique taxing jurisdiction level. The
128.36 commissioner's determinations under this paragraph are not rules.
129.1 (b) The commissioner of revenue shall certify the total of
129.2 the tax reductions granted under this section for each taxes
129.3 payable year within each school district to the commissioner of
129.4 children, families, and learning after July 1 and on or before
129.5 August 1 of the taxes payable year. The commissioner of
129.6 children, families, and learning shall reimburse each affected
129.7 school district for the amount of the property tax reductions
129.8 allowed under this section as provided in section 273.1392. The
129.9 commissioner of children, families, and learning shall treat the
129.10 reimbursement payments as entitlements for the same state fiscal
129.11 year as certified, including with each district's initial
129.12 payment all amounts that would have been paid up to that date,
129.13 computed as if 90 percent of the annual reimbursement amount for
129.14 the district were being paid one-twelfth in each month of the
129.15 fiscal year.
129.16 Subd. 3. [APPROPRIATION.] An amount sufficient to make the
129.17 payments required by this section is annually appropriated from
129.18 the general fund to the commissioner of children, families, and
129.19 learning.
129.20 Sec. 22. Minnesota Statutes 1998, section 273.1398,
129.21 subdivision 1a, is amended to read:
129.22 Subd. 1a. [TAX BASE DIFFERENTIAL.] (a) For aids payable in
129.23 2000, the tax base differential is:
129.24 (1) 0.45 percent of the assessment year 1998 taxable market
129.25 value of class 2a agricultural homestead property, excluding the
129.26 house, garage, and surrounding one acre of land, between
129.27 $115,000 and $600,000 and over 320 acres, minus the value over
129.28 $600,000 that is less than 320 acres; plus
129.29 (2) 0.5 percent of the assessment year 1998 taxable market
129.30 value of noncommercial seasonal recreational residential
129.31 property over $75,000 in value; plus
129.32 (3) for purposes of computing the fiscal disparity
129.33 adjustment only, the tax base differential is 0.2 percent of the
129.34 assessment year 1998 taxable market value of class 3
129.35 commercial-industrial property over $150,000.
129.36 (b) For the purposes of the distribution of homestead and
130.1 agricultural credit aid for aids payable in 2000, the
130.2 commissioner of revenue shall use the best information available
130.3 as of June 30, 1999, to make an estimate of the value described
130.4 in paragraph (a), clause (1). The commissioner shall adjust the
130.5 distribution of homestead and agricultural credit aid for aids
130.6 payable in 2001 and subsequent years if new information
130.7 regarding the value described in paragraph (a), clause (1),
130.8 becomes available after June 30, 1999.
130.9 Sec. 23. Minnesota Statutes 1998, section 273.1398,
130.10 subdivision 8, is amended to read:
130.11 Subd. 8. [APPROPRIATION.] (a) An amount sufficient to pay
130.12 the aids and credits provided under this section for school
130.13 districts, intermediate school districts, or any group of school
130.14 districts levying as a single taxing entity, is annually
130.15 appropriated from the general fund to the commissioner of
130.16 children, families, and learning. An amount sufficient to pay
130.17 the aids and credits provided under this section for counties,
130.18 cities, towns, and special taxing districts is annually
130.19 appropriated from the general fund to the commissioner of
130.20 revenue. A jurisdiction's aid amount may be increased or
130.21 decreased based on any prior year adjustments for homestead
130.22 credit or other property tax credit or aid programs.
130.23 (b) The commissioner of finance shall bill the commissioner
130.24 of revenue for the cost of preparation of local impact notes as
130.25 required by section 3.987 only to the extent to which those
130.26 costs exceed those costs incurred in fiscal year 1997 and for
130.27 any other new costs attributable to the local impact note
130.28 function required by section 3.987, not to exceed $100,000 in
130.29 fiscal year years 1998 and 1999 and $200,000 in fiscal year 1999
130.30 2000 and thereafter.
130.31 The commissioner of revenue shall deduct the amount billed
130.32 under this paragraph from aid payments to be made to cities and
130.33 counties under subdivision 2 on a pro rata basis. The amount
130.34 deducted under this paragraph is appropriated to the
130.35 commissioner of finance for the preparation of local impact
130.36 notes.
131.1 Sec. 24. Minnesota Statutes 1998, section 273.20, is
131.2 amended to read:
131.3 273.20 [ASSESSOR MAY ENTER DWELLINGS, BUILDINGS, OR
131.4 STRUCTURES.]
131.5 Any officer authorized by law to assess property for
131.6 taxation may, when necessary to the proper performance of
131.7 duties, enter any dwelling-house, building, or structure, and
131.8 view the same and the property therein.
131.9 Any officer authorized by law to assess property for ad
131.10 valorem tax purposes shall have reasonable access to land and
131.11 structures as necessary for the proper performance of their
131.12 duties. A property owner may refuse to allow an assessor to
131.13 inspect their property. This refusal by the property owner must
131.14 be either verbal or expressly stated in a letter to the county
131.15 assessor. If the assessor is denied access to view a property,
131.16 the assessor is authorized to estimate the property's estimated
131.17 market value by making assumptions believed appropriate
131.18 concerning the property's finish and condition.
131.19 Sec. 25. Minnesota Statutes 1998, section 274.01,
131.20 subdivision 1, is amended to read:
131.21 Subdivision 1. [ORDINARY BOARD; MEETINGS, DEADLINES,
131.22 GRIEVANCES.] (a) The town board of a town, or the council or
131.23 other governing body of a city, is the board of review except
131.24 (1) in cities whose charters provide for a board of equalization
131.25 or (2) in any city or town that has transferred its local board
131.26 of review power and duties to the county board as provided in
131.27 subdivision 3. The county assessor shall fix a day and time
131.28 when the board or the board of equalization shall meet in the
131.29 assessment districts of the county. On or before February 15 of
131.30 each year the assessor shall give written notice of the time to
131.31 the city or town clerk. Notwithstanding the provisions of any
131.32 charter to the contrary, the meetings must be held between April
131.33 1 and May 31 each year. The clerk shall give published and
131.34 posted notice of the meeting at least ten days before the date
131.35 of the meeting.
131.36 If in any county, at least 25 percent of the total net tax
132.1 capacity of a city or town is noncommercial seasonal residential
132.2 recreational property classified under section 273.13,
132.3 subdivision 25, the county must hold two countywide
132.4 informational meetings on Saturdays. The meetings will allow
132.5 noncommercial seasonal residential recreational taxpayers to
132.6 discuss their property valuation with the appropriate assessment
132.7 staff. These Saturday informational meetings must be scheduled
132.8 to allow the owner of the noncommercial seasonal residential
132.9 recreational property the opportunity to attend one of the
132.10 meetings prior to the scheduled board of review for their city
132.11 or town. The Saturday meeting dates must be contained on the
132.12 notice of valuation of real property under section 273.121.
132.13 The board shall meet at the office of the clerk to review
132.14 the assessment and classification of property in the town or
132.15 city. No changes in valuation or classification which are
132.16 intended to correct errors in judgment by the county assessor
132.17 may be made by the county assessor after the board of review has
132.18 adjourned in those cities or towns that hold a local board of
132.19 review; however, corrections of errors that are merely clerical
132.20 in nature or changes that extend homestead treatment to property
132.21 are permitted after adjournment until the tax extension date for
132.22 that assessment year. The changes must be fully documented and
132.23 maintained in the assessor's office and must be available for
132.24 review by any person. A copy of the changes made during this
132.25 period in those cities or towns that hold a local board of
132.26 review must be sent to the county board no later than December
132.27 31 of the assessment year.
132.28 (b) The board shall determine whether the taxable property
132.29 in the town or city has been properly placed on the list and
132.30 properly valued by the assessor. If real or personal property
132.31 has been omitted, the board shall place it on the list with its
132.32 market value, and correct the assessment so that each tract or
132.33 lot of real property, and each article, parcel, or class of
132.34 personal property, is entered on the assessment list at its
132.35 market value. No assessment of the property of any person may
132.36 be raised unless the person has been duly notified of the intent
133.1 of the board to do so. On application of any person feeling
133.2 aggrieved, the board shall review the assessment or
133.3 classification, or both, and correct it as appears just. The
133.4 board may not make an individual market value adjustment or
133.5 classification change that would benefit the property in cases
133.6 where the owner or other person having control over the property
133.7 will not permit the assessor to inspect the property and the
133.8 interior of any buildings or structures.
133.9 (c) A local board of review may reduce assessments upon
133.10 petition of the taxpayer but the total reductions must not
133.11 reduce the aggregate assessment made by the county assessor by
133.12 more than one percent. If the total reductions would lower the
133.13 aggregate assessments made by the county assessor by more than
133.14 one percent, none of the adjustments may be made. The assessor
133.15 shall correct any clerical errors or double assessments
133.16 discovered by the board of review without regard to the one
133.17 percent limitation.
133.18 (d) A majority of the members may act at the meeting, and
133.19 adjourn from day to day until they finish hearing the cases
133.20 presented. The assessor shall attend, with the assessment books
133.21 and papers, and take part in the proceedings, but must not
133.22 vote. The county assessor, or an assistant delegated by the
133.23 county assessor shall attend the meetings. The board shall list
133.24 separately, on a form appended to the assessment book, all
133.25 omitted property added to the list by the board and all items of
133.26 property increased or decreased, with the market value of each
133.27 item of property, added or changed by the board, placed opposite
133.28 the item. The county assessor shall enter all changes made by
133.29 the board in the assessment book.
133.30 (e) Except as provided in subdivision 3, if a person fails
133.31 to appear in person, by counsel, or by written communication
133.32 before the board after being duly notified of the board's intent
133.33 to raise the assessment of the property, or if a person feeling
133.34 aggrieved by an assessment or classification fails to apply for
133.35 a review of the assessment or classification, the person may not
133.36 appear before the county board of equalization for a review of
134.1 the assessment or classification. This paragraph does not apply
134.2 if an assessment was made after the board meeting, as provided
134.3 in section 273.01, or if the person can establish not having
134.4 received notice of market value at least five days before the
134.5 local board of review meeting.
134.6 (f) The board of review or the board of equalization must
134.7 complete its work and adjourn within 20 days from the time of
134.8 convening stated in the notice of the clerk, unless a longer
134.9 period is approved by the commissioner of revenue. No action
134.10 taken after that date is valid. All complaints about an
134.11 assessment or classification made after the meeting of the board
134.12 must be heard and determined by the county board of
134.13 equalization. A nonresident may, at any time, before the
134.14 meeting of the board of review file written objections to an
134.15 assessment or classification with the county assessor. The
134.16 objections must be presented to the board of review at its
134.17 meeting by the county assessor for its consideration.
134.18 Sec. 26. Minnesota Statutes 1998, section 276.131, is
134.19 amended to read:
134.20 276.131 [DISTRIBUTION OF PENALTIES, INTEREST, AND COSTS.]
134.21 The penalties, interest, and costs collected on special
134.22 assessments and real and personal property taxes must be
134.23 distributed as follows:
134.24 (1) all penalties and interest collected on special
134.25 assessments against real or personal property must be
134.26 distributed to the taxing jurisdiction that levied the
134.27 assessment;
134.28 (2) 50 percent of all penalties and interest collected on
134.29 real and personal property taxes must be distributed to the
134.30 county in which the property is located school districts within
134.31 the county, and the other remaining 50 percent must be
134.32 distributed to the school districts within the county. The
134.33 distribution to the school district must be in accordance with
134.34 the provisions of section 127A.34; and
134.35 (3) in the case of interest on taxes that have been
134.36 delinquent for a period of one year or less, (a) 50 percent of
135.1 the interest must be distributed to the school districts within
135.2 the county and (b) the remaining 50 percent shall be distributed
135.3 to the county;
135.4 (4) in the case of interest on taxes that have been
135.5 delinquent for a period of more than one year, (a) 50 percent of
135.6 the interest must be distributed to the school districts within
135.7 the county and (b) the remaining 50 percent must be distributed
135.8 as follows: (i) the city or town where the property is located
135.9 shall receive a share of the amount of interest equal to the
135.10 proportion that the city's or town's local tax rate for the year
135.11 that the interest was collected, is to the sum of the city's or
135.12 town's local tax rate and the county's local tax rate for the
135.13 year that the interest was collected and (ii) the balance must
135.14 be distributed to the county; and
135.15 (5) all costs collected by the county on special
135.16 assessments and on delinquent real and personal property taxes
135.17 must be distributed to the county in which the property is
135.18 located.
135.19 The distribution of all penalties and interest to the
135.20 school district must be in accordance with the provisions of
135.21 section 127A.34.
135.22 Sec. 27. Minnesota Statutes 1998, section 290A.03,
135.23 subdivision 6, is amended to read:
135.24 Subd. 6. [HOMESTEAD.] "Homestead" means the dwelling
135.25 occupied as the claimant's principal residence and so much of
135.26 the land surrounding it, not exceeding ten acres, as is
135.27 reasonably necessary for use of the dwelling as a home and any
135.28 other property used for purposes of a homestead as defined in
135.29 section 273.13, subdivision 22, except for agricultural land
135.30 assessed as part of a homestead pursuant to section 273.13,
135.31 subdivision 23, "homestead" is limited to 320 acres the first
135.32 $600,000 of market value or, where the farm homestead is rented,
135.33 one acre. The homestead may be owned or rented and may be a
135.34 part of a multidwelling or multipurpose building and the land on
135.35 which it is built. A manufactured home, as defined in section
135.36 273.125, subdivision 8, or a park trailer taxed as a
136.1 manufactured home under section 168.012, subdivision 9, assessed
136.2 as personal property may be a dwelling for purposes of this
136.3 subdivision.
136.4 Sec. 28. Minnesota Statutes 1998, section 290B.03,
136.5 subdivision 1, is amended to read:
136.6 Subdivision 1. [PROGRAM QUALIFICATIONS.] The
136.7 qualifications for the senior citizens' property tax deferral
136.8 program are as follows:
136.9 (1) the property must be owned and occupied as a homestead
136.10 by a person 65 years of age or older. In the case of a married
136.11 couple, both of the spouses must be at least 65 years old at the
136.12 time the first property tax deferral is granted, regardless of
136.13 whether the property is titled in the name of one spouse or both
136.14 spouses, or titled in another way that permits the property to
136.15 have homestead status;
136.16 (2) the total household income of the qualifying
136.17 homeowners, as defined in section 290A.03, subdivision 5, for
136.18 the calendar year preceding the year of the initial application
136.19 may not exceed $30,000 $60,000;
136.20 (3) the homestead must have been owned and occupied as the
136.21 homestead of at least one of the qualifying homeowners for at
136.22 least 15 years prior to the year the initial application is
136.23 filed;
136.24 (4) there are no delinquent property taxes, penalties, or
136.25 interest on the homesteaded property;
136.26 (5) there are no delinquent special assessments on the
136.27 homesteaded property;
136.28 (6) there are no state or federal tax liens or judgment
136.29 liens on the homesteaded property;
136.30 (7) there are no mortgages or other liens on the property
136.31 that secure future advances, except for those subject to credit
136.32 limits that result in compliance with clause (8); and
136.33 (8) the total unpaid balances of debts secured by mortgages
136.34 and other liens on the property, including unpaid special
136.35 assessments, but not including property taxes payable during the
136.36 year, does not exceed 30 percent of the assessor's estimated
137.1 market value for the year.
137.2 Sec. 29. Minnesota Statutes 1998, section 290B.04,
137.3 subdivision 2, is amended to read:
137.4 Subd. 2. [APPROVAL; RECORDING.] The commissioner shall
137.5 approve all initial applications that qualify under this chapter
137.6 and shall notify qualifying homeowners on or before December 1.
137.7 The commissioner may investigate the facts or require
137.8 confirmation in regard to an application. The commissioner
137.9 shall record or file a notice of qualification for deferral,
137.10 including the names of the qualifying homeowners and a legal
137.11 description of the property, in the office of the county
137.12 recorder, or registrar of titles, whichever is applicable, in
137.13 the county where the qualifying property is located. The notice
137.14 must state that it serves as a notice of lien and that it
137.15 includes deferrals under this section for future years. The
137.16 homeowner shall pay the recording or filing fees for the notice,
137.17 which, notwithstanding section 357.18, shall be paid by the
137.18 homeowner at the time of satisfaction of the lien.
137.19 Sec. 30. Minnesota Statutes 1998, section 290B.04,
137.20 subdivision 3, is amended to read:
137.21 Subd. 3. [EXCESS-INCOME CERTIFICATION BY TAXPAYER.] A
137.22 taxpayer whose initial application has been approved under
137.23 subdivision 2 shall notify the commissioner of revenue in
137.24 writing by July 1 if the taxpayer's household income for the
137.25 preceding calendar year exceeded $30,000 $60,000. The
137.26 certification must state the homeowner's total household income
137.27 for the previous calendar year. No property taxes may be
137.28 deferred under this chapter in any year following the year in
137.29 which a program participant filed or should have filed an
137.30 excess-income certification under this subdivision, unless the
137.31 participant has filed a resumption of eligibility certification
137.32 as described in subdivision 4.
137.33 Sec. 31. Minnesota Statutes 1998, section 290B.04,
137.34 subdivision 4, is amended to read:
137.35 Subd. 4. [RESUMPTION OF ELIGIBILITY CERTIFICATION BY
137.36 TAXPAYER.] A taxpayer who has previously filed an excess-income
138.1 certification under subdivision 3 may resume program
138.2 participation if the taxpayer's household income for a
138.3 subsequent year is $30,000 $60,000 or less. If the taxpayer
138.4 chooses to resume program participation, the taxpayer must
138.5 notify the commissioner of revenue in writing by July 1 of the
138.6 year following a calendar year in which the taxpayer's household
138.7 income is $30,000 $60,000 or less. The certification must state
138.8 the taxpayer's total household income for the previous calendar
138.9 year. Once a taxpayer resumes participation in the program
138.10 under this subdivision, participation will continue until the
138.11 taxpayer files a subsequent excess-income certification under
138.12 subdivision 3 or until participation is terminated under section
138.13 290B.08, subdivision 1.
138.14 Sec. 32. Minnesota Statutes 1998, section 290B.05,
138.15 subdivision 1, is amended to read:
138.16 Subdivision 1. [DETERMINATION BY COMMISSIONER.] The
138.17 commissioner shall determine each qualifying homeowner's "annual
138.18 maximum property tax amount" following approval of the
138.19 homeowner's initial application and following the receipt of a
138.20 resumption of eligibility certification. The "annual maximum
138.21 property tax amount" equals five three percent of the
138.22 homeowner's total household income for the year preceding either
138.23 the initial application or the resumption of eligibility
138.24 certification, whichever is applicable. Following approval of
138.25 the initial application, the commissioner shall determine the
138.26 qualifying homeowner's "maximum allowable deferral." No tax may
138.27 be deferred relative to the appropriate assessment year for any
138.28 homeowner whose total household income for the previous year
138.29 exceeds $30,000 $60,000. No tax shall be deferred in any year
138.30 in which the homeowner does not meet the program qualifications
138.31 in section 290B.03. The maximum allowable total deferral is
138.32 equal to 75 percent of the assessor's estimated market value for
138.33 the year, less the balance of any mortgage loans and other
138.34 amounts secured by liens against the property at the time of
138.35 application, including any unpaid special assessments but not
138.36 including property taxes payable during the year.
139.1 Sec. 33. Minnesota Statutes 1998, section 298.22,
139.2 subdivision 7, is amended to read:
139.3 Subd. 7. [GIANTS RIDGE RECREATION AREA.] (a) In addition
139.4 to the other powers granted in this section and other law, the
139.5 commissioner, for purposes of fostering economic development and
139.6 tourism within the Giants Ridge recreation area, may spend any
139.7 money made available to the agency under section 298.28 to
139.8 acquire real or personal property or interests therein by gift,
139.9 purchase, or lease and may convey by lease, sale, or other means
139.10 of conveyance or commitment any or all of those property
139.11 interests acquired.
139.12 (b) Notwithstanding any other law to the contrary, property
139.13 conveyed under this subdivision and used for residential
139.14 purposes is not eligible for property tax homestead
139.15 classification under section 273.124 or for a property tax
139.16 refund under chapter 290A.
139.17 (c) In furtherance of development of the Giants Ridge
139.18 recreation area, the commissioner may establish and participate
139.19 in charitable foundations and nonprofit corporations, including
139.20 a corporation within the meaning of section 317A.011,
139.21 subdivision 6.
139.22 (d) (c) The term "Giants Ridge recreation area" refers to
139.23 an economic development project area established by the
139.24 commissioner in furtherance of the powers delegated in this
139.25 section within St. Louis county in the western portions of the
139.26 town of White and in the eastern portion of the westerly,
139.27 adjacent, unorganized township.
139.28 Sec. 34. Minnesota Statutes 1998, section 373.40,
139.29 subdivision 1, is amended to read:
139.30 Subdivision 1. [DEFINITIONS.] For purposes of this
139.31 section, the following terms have the meanings given.
139.32 (a) "Bonds" means an obligation as defined under section
139.33 475.51.
139.34 (b) "Capital improvement" means acquisition or betterment
139.35 of public lands, development rights in the form of conservation
139.36 easements under chapter 84C, buildings, or other improvements
140.1 within the county for the purpose of a county courthouse,
140.2 administrative building, health or social service facility,
140.3 correctional facility, jail, law enforcement center, hospital,
140.4 morgue, library, park, qualified indoor ice arena, and roads and
140.5 bridges. An improvement must have an expected useful life of
140.6 five years or more to qualify. "Capital improvement" does not
140.7 include light rail transit or any activity related to it or a
140.8 recreation or sports facility building (such as, but not limited
140.9 to, a gymnasium, ice arena, racquet sports facility, swimming
140.10 pool, exercise room or health spa), unless the building is part
140.11 of an outdoor park facility and is incidental to the primary
140.12 purpose of outdoor recreation.
140.13 (c) "Commissioner" means the commissioner of trade and
140.14 economic development.
140.15 (d) "Metropolitan county" means a county located in the
140.16 seven-county metropolitan area as defined in section 473.121 or
140.17 a county with a population of 90,000 or more.
140.18 (e) "Population" means the population established by the
140.19 most recent of the following (determined as of the date the
140.20 resolution authorizing the bonds was adopted):
140.21 (1) the federal decennial census,
140.22 (2) a special census conducted under contract by the United
140.23 States Bureau of the Census, or
140.24 (3) a population estimate made either by the metropolitan
140.25 council or by the state demographer under section 4A.02.
140.26 (f) "Qualified indoor ice arena" means a facility that
140.27 meets the requirements of section 373.43.
140.28 (g) "Tax capacity" means total taxable market value, but
140.29 does not include captured market value.
140.30 Sec. 35. Minnesota Statutes 1998, section 375.18,
140.31 subdivision 12, is amended to read:
140.32 Subd. 12. [LAND FOR PUBLIC USE.] Each county board may
140.33 acquire by gift or purchase and improve land within the county,
140.34 for use as a park, site for a building, or other public purpose,
140.35 and, when required by the public interest, sell and convey it.
140.36 The land may be paid for out of moneys in the county treasury
141.1 not otherwise appropriated, or by issuing bonds of the
141.2 county. The county board may acquire development rights in the
141.3 form of a conservation easement under chapter 84C. The holder
141.4 of the conservation easement may be determined by a governmental
141.5 body.
141.6 Sec. 36. Minnesota Statutes 1998, section 462A.071,
141.7 subdivision 2, is amended to read:
141.8 Subd. 2. [APPLICATION.] (a) In order to qualify for
141.9 certification under subdivision 1, the owner or manager of the
141.10 property must annually apply to the agency. The application
141.11 must be in the form prescribed by the agency, contain the
141.12 information required by the agency, and be submitted by the date
141.13 and time specified by the agency. Beginning in calendar year
141.14 2000, the agency shall adopt procedures and deadlines for making
141.15 application to permit certification of the units qualifying to
141.16 the assessor by no later than April 1 of the assessment year.
141.17 (b) Each application must include:
141.18 (1) the property tax identification number;
141.19 (2) the number, type, and size of units the applicant seeks
141.20 to qualify as low-income housing under class 4d;
141.21 (3) the number, type, and size of units in the property for
141.22 which the applicant is not seeking qualification, if any;
141.23 (4) a certification that the property has been inspected by
141.24 a qualified inspector within the past three years and meets the
141.25 minimum housing quality standards or is exempt from the
141.26 inspection requirement under subdivision 4;
141.27 (5) a statement indicating the qualifying units in
141.28 compliance with the income limits;
141.29 (6) an executed agreement to restrict rents meeting the
141.30 requirements specified by the agency or executed leases for the
141.31 units for which qualification as low-income housing as class 4d
141.32 under section 273.13 is sought and the rent schedule; and
141.33 (7) any additional information the agency deems appropriate
141.34 to require.
141.35 (c) The applicant must pay a per-unit application fee to be
141.36 set by the agency. The application fee charged by the agency
142.1 must approximately equal the costs of processing and reviewing
142.2 the applications. The fee must be deposited in the housing
142.3 development fund.
142.4 Sec. 37. Minnesota Statutes 1998, section 469.002,
142.5 subdivision 10, is amended to read:
142.6 Subd. 10. [FEDERAL LEGISLATION.] "Federal legislation"
142.7 includes the United States Housing Act of 1937, United States
142.8 Code, title 42, sections 1401 to 1440, as amended through
142.9 December 31, 1989 1998; the National Housing Act, United States
142.10 Code, title 12, sections 1701 to 1750g, as amended through
142.11 December 31, 1989; and any other legislation of the Congress of
142.12 the United States relating to federal assistance for clearance
142.13 or rehabilitation of substandard or blighted areas, land
142.14 assembly, redevelopment projects, or housing.
142.15 Sec. 38. Minnesota Statutes 1998, section 469.012,
142.16 subdivision 1, is amended to read:
142.17 Subdivision 1. [SCHEDULE OF POWERS.] An authority shall be
142.18 a public body corporate and politic and shall have all the
142.19 powers necessary or convenient to carry out the purposes of
142.20 sections 469.001 to 469.047, except that the power to levy and
142.21 collect taxes or special assessments is limited to the power
142.22 provided in sections 469.027 to 469.033. Its powers include the
142.23 following powers in addition to others granted in sections
142.24 469.001 to 469.047:
142.25 (1) to sue and be sued; to have a seal, which shall be
142.26 judicially noticed, and to alter it; to have perpetual
142.27 succession; and to make, amend, and repeal rules consistent with
142.28 sections 469.001 to 469.047;
142.29 (2) to employ an executive director, technical experts, and
142.30 officers, agents, and employees, permanent and temporary, that
142.31 it requires, and determine their qualifications, duties, and
142.32 compensation; for legal services it requires, to call upon the
142.33 chief law officer of the city or to employ its own counsel and
142.34 legal staff; so far as practicable, to use the services of local
142.35 public bodies in its area of operation, provided that those
142.36 local public bodies, if requested, shall make the services
143.1 available;
143.2 (3) to delegate to one or more of its agents or employees
143.3 the powers or duties it deems proper;
143.4 (4) within its area of operation, to undertake, prepare,
143.5 carry out, and operate projects and to provide for the
143.6 construction, reconstruction, improvement, extension,
143.7 alteration, or repair of any project or part thereof;
143.8 (5) subject to the provisions of section 469.026, to give,
143.9 sell, transfer, convey, or otherwise dispose of real or personal
143.10 property or any interest therein and to execute leases, deeds,
143.11 conveyances, negotiable instruments, purchase agreements, and
143.12 other contracts or instruments, and take action that is
143.13 necessary or convenient to carry out the purposes of these
143.14 sections;
143.15 (6) within its area of operation, to acquire real or
143.16 personal property or any interest therein by gifts, grant,
143.17 purchase, exchange, lease, transfer, bequest, devise, or
143.18 otherwise, and by the exercise of the power of eminent domain,
143.19 in the manner provided by chapter 117, to acquire real property
143.20 which it may deem necessary for its purposes, after the adoption
143.21 by it of a resolution declaring that the acquisition of the real
143.22 property is necessary to eliminate one or more of the conditions
143.23 found to exist in the resolution adopted pursuant to section
143.24 469.003 or to provide decent, safe, and sanitary housing for
143.25 persons of low and moderate income, or is necessary to carry out
143.26 a redevelopment project. Real property needed or convenient for
143.27 a project may be acquired by the authority for the project by
143.28 condemnation pursuant to this section. This includes any
143.29 property devoted to a public use, whether or not held in trust,
143.30 notwithstanding that the property may have been previously
143.31 acquired by condemnation or is owned by a public utility
143.32 corporation, because the public use in conformity with the
143.33 provisions of sections 469.001 to 469.047 shall be deemed a
143.34 superior public use. Property devoted to a public use may be so
143.35 acquired only if the governing body of the municipality has
143.36 approved its acquisition by the authority. An award of
144.1 compensation shall not be increased by reason of any increase in
144.2 the value of the real property caused by the assembly, clearance
144.3 or reconstruction, or proposed assembly, clearance or
144.4 reconstruction for the purposes of sections 469.001 to 469.047
144.5 of the real property in an area;
144.6 (7) within its area of operation, and without the adoption
144.7 of an urban renewal plan, to acquire, by all means as set forth
144.8 in clause (6) but without the adoption of a resolution provided
144.9 for in clause (6), real property, and to demolish, remove,
144.10 rehabilitate, or reconstruct the buildings and improvements or
144.11 construct new buildings and improvements thereon, or to so
144.12 provide through other means as set forth in Laws 1974, chapter
144.13 228, or to grade, fill, and construct foundations or otherwise
144.14 prepare the site for improvements. The authority may dispose of
144.15 the property pursuant to section 469.029, provided that the
144.16 provisions of section 469.029 requiring conformance to an urban
144.17 renewal plan shall not apply. The authority may finance these
144.18 activities by means of the redevelopment project fund or by
144.19 means of tax increments or tax increment bonds or by the methods
144.20 of financing provided for in section 469.033 or by means of
144.21 contributions from the municipality provided for in section
144.22 469.041, clause (9), or by any combination of those means. Real
144.23 property with buildings or improvements thereon shall only be
144.24 acquired under this clause when the buildings or improvements
144.25 are substandard. The exercise of the power of eminent domain
144.26 under this clause shall be limited to real property which
144.27 contains, or has contained within the three years immediately
144.28 preceding the exercise of the power of eminent domain and is
144.29 currently vacant, buildings and improvements which are vacated
144.30 and substandard. Notwithstanding the prior sentence, in cities
144.31 of the first class the exercise of the power of eminent domain
144.32 under this clause shall be limited to real property which
144.33 contains, or has contained within the three years immediately
144.34 preceding the exercise of the power of eminent domain, buildings
144.35 and improvements which are substandard. For the purpose of this
144.36 clause, substandard buildings or improvements mean hazardous
145.1 buildings as defined in section 463.15, subdivision 3, or
145.2 buildings or improvements that are dilapidated or obsolescent,
145.3 faultily designed, lack adequate ventilation, light, or sanitary
145.4 facilities, or any combination of these or other factors that
145.5 are detrimental to the safety or health of the community;
145.6 (8) within its area of operation, to determine the level of
145.7 income constituting low or moderate family income. The
145.8 authority may establish various income levels for various family
145.9 sizes. In making its determination, the authority may consider
145.10 income levels that may be established by the Department of
145.11 Housing and Urban Development or a similar or successor federal
145.12 agency for the purpose of federal loan guarantees or subsidies
145.13 for persons of low or moderate income. The authority may use
145.14 that determination as a basis for the maximum amount of income
145.15 for admissions to housing development projects or housing
145.16 projects owned or operated by it;
145.17 (9) to provide in federally assisted projects any
145.18 relocation payments and assistance necessary to comply with the
145.19 requirements of the Federal Uniform Relocation Assistance and
145.20 Real Property Acquisition Policies Act of 1970, and any
145.21 amendments or supplements thereto;
145.22 (10) to make an agreement with the governing body or bodies
145.23 creating the authority which provides exemption from all ad
145.24 valorem real and personal property taxes levied or imposed by
145.25 the body or bodies creating the authority. In the case of
145.26 low-rent public housing that received financial assistance under
145.27 the United States Housing Act of 1937, or successor federal
145.28 legislation, an authority may make an agreement with the
145.29 governing body or bodies creating the authority to provide
145.30 exemption from all real and personal property taxes levied or
145.31 imposed by the state, city, county, or other political
145.32 subdivision, for which the authority shall make payments in lieu
145.33 of taxes to the state, city, county, or other political
145.34 subdivisions as provided in section 469.040. The governing body
145.35 shall agree on behalf of all the applicable governing bodies
145.36 affected that local cooperation as required by the federal
146.1 government shall be provided by the local governing body or
146.2 bodies in whose jurisdiction the project is to be located, at no
146.3 cost or at no greater cost than the same public services and
146.4 facilities furnished to other residents;
146.5 (11) to cooperate with or act as agent for the federal
146.6 government, the state or any state public body, or any agency or
146.7 instrumentality of the foregoing, in carrying out any of the
146.8 provisions of sections 469.001 to 469.047 or of any other
146.9 related federal, state, or local legislation; and upon the
146.10 consent of the governing body of the city to purchase, lease,
146.11 manage, or otherwise take over any housing project already owned
146.12 and operated by the federal government;
146.13 (12) to make plans for carrying out a program of voluntary
146.14 repair and rehabilitation of buildings and improvements, and
146.15 plans for the enforcement of laws, codes, and regulations
146.16 relating to the use of land and the use and occupancy of
146.17 buildings and improvements, and to the compulsory repair,
146.18 rehabilitation, demolition, or removal of buildings and
146.19 improvements. The authority may develop, test, and report
146.20 methods and techniques, and carry out demonstrations and other
146.21 activities for the prevention and elimination of slums and
146.22 blight;
146.23 (13) to borrow money or other property and accept
146.24 contributions, grants, gifts, services, or other assistance from
146.25 the federal government, the state government, state public
146.26 bodies, or from any other public or private sources;
146.27 (14) to include in any contract for financial assistance
146.28 with the federal government any conditions that the federal
146.29 government may attach to its financial aid of a project, not
146.30 inconsistent with purposes of sections 469.001 to 469.047,
146.31 including obligating itself (which obligation shall be
146.32 specifically enforceable and not constitute a mortgage,
146.33 notwithstanding any other laws) to convey to the federal
146.34 government the project to which the contract relates upon the
146.35 occurrence of a substantial default with respect to the
146.36 covenants or conditions to which the authority is subject; to
147.1 provide in the contract that, in case of such conveyance, the
147.2 federal government may complete, operate, manage, lease, convey,
147.3 or otherwise deal with the project until the defaults are cured
147.4 if the federal government agrees in the contract to reconvey to
147.5 the authority the project as then constituted when the defaults
147.6 have been cured;
147.7 (15) to issue bonds for any of its corporate purposes and
147.8 to secure the bonds by mortgages upon property held or to be
147.9 held by it or by pledge of its revenues, including grants or
147.10 contributions;
147.11 (16) to invest any funds held in reserves or sinking funds,
147.12 or any funds not required for immediate disbursement, in
147.13 property or securities in which savings banks may legally invest
147.14 funds subject to their control or in the manner and subject to
147.15 the conditions provided in section 118A.04 for the deposit and
147.16 investment of public funds;
147.17 (17) within its area of operation, to determine where
147.18 blight exists or where there is unsafe, unsanitary, or
147.19 overcrowded housing;
147.20 (18) to carry out studies of the housing and redevelopment
147.21 needs within its area of operation and of the meeting of those
147.22 needs. This includes study of data on population and family
147.23 groups and their distribution according to income groups, the
147.24 amount and quality of available housing and its distribution
147.25 according to rentals and sales prices, employment, wages,
147.26 desirable patterns for land use and community growth, and other
147.27 factors affecting the local housing and redevelopment needs and
147.28 the meeting of those needs; to make the results of those studies
147.29 and analyses available to the public and to building, housing,
147.30 and supply industries;
147.31 (19) if a local public body does not have a planning agency
147.32 or the planning agency has not produced a comprehensive or
147.33 general community development plan, to make or cause to be made
147.34 a plan to be used as a guide in the more detailed planning of
147.35 housing and redevelopment areas;
147.36 (20) to lease or rent any dwellings, accommodations, lands,
148.1 buildings, structures, or facilities included in any project
148.2 and, subject to the limitations contained in sections 469.001 to
148.3 469.047 with respect to the rental of dwellings in housing
148.4 projects, to establish and revise the rents or charges therefor;
148.5 (21) to own, hold, and improve real or personal property
148.6 and to sell, lease, exchange, transfer, assign, pledge, or
148.7 dispose of any real or personal property or any interest
148.8 therein;
148.9 (22) to insure or provide for the insurance of any real or
148.10 personal property or operations of the authority against any
148.11 risks or hazards;
148.12 (23) to procure or agree to the procurement of government
148.13 insurance or guarantees of the payment of any bonds or parts
148.14 thereof issued by an authority and to pay premiums on the
148.15 insurance;
148.16 (24) to make expenditures necessary to carry out the
148.17 purposes of sections 469.001 to 469.047;
148.18 (25) to enter into an agreement or agreements with any
148.19 state public body to provide informational service and
148.20 relocation assistance to families, individuals, business
148.21 concerns, and nonprofit organizations displaced or to be
148.22 displaced by the activities of any state public body;
148.23 (26) to compile and maintain a catalog of all vacant, open
148.24 and undeveloped land, or land which contains substandard
148.25 buildings and improvements as that term is defined in clause
148.26 (7), that is owned or controlled by the authority or by the
148.27 governing body within its area of operation and to compile and
148.28 maintain a catalog of all authority owned real property that is
148.29 in excess of the foreseeable needs of the authority, in order to
148.30 determine and recommend if the real property compiled in either
148.31 catalog is appropriate for disposal pursuant to the provisions
148.32 of section 469.029, subdivisions 9 and 10;
148.33 (27) to recommend to the city concerning the enforcement of
148.34 the applicable health, housing, building, fire prevention, and
148.35 housing maintenance code requirements as they relate to
148.36 residential dwelling structures that are being rehabilitated by
149.1 low- or moderate-income persons pursuant to section 469.029,
149.2 subdivision 9, for the period of time necessary to complete the
149.3 rehabilitation, as determined by the authority;
149.4 (28) to recommend to the city the initiation of municipal
149.5 powers, against certain real properties, relating to repair,
149.6 closing, condemnation, or demolition of unsafe, unsanitary,
149.7 hazardous, and unfit buildings, as provided in section 469.041,
149.8 clause (5);
149.9 (29) to sell, at private or public sale, at the price or
149.10 prices determined by the authority, any note, mortgage, lease,
149.11 sublease, lease purchase, or other instrument or obligation
149.12 evidencing or securing a loan made for the purpose of economic
149.13 development, job creation, redevelopment, or community
149.14 revitalization by a public agency to a business, for-profit or
149.15 nonprofit organization, or an individual;
149.16 (30) within its area of operation, to acquire and sell real
149.17 property that is benefited by federal housing assistance
149.18 payments, other rental subsidies, interest reduction payments,
149.19 or interest reduction contracts for the purpose of preserving
149.20 the affordability of low- and moderate-income multifamily
149.21 housing;
149.22 (31) to apply for, enter into contracts with the federal
149.23 government, administer, and carry out a section 8 program.
149.24 Authorization by the governing body creating the authority to
149.25 administer the program at the authority's initial application is
149.26 sufficient to authorize operation of the program in its area of
149.27 operation for which it was created without additional local
149.28 governing body approval. Approval by the governing body or
149.29 bodies creating the authority constitutes approval of a housing
149.30 program for purposes of any special or general law requiring
149.31 local approval of section 8 programs undertaken by city, county,
149.32 or multicounty authorities; and
149.33 (32) to secure a mortgage or loan for a rental housing
149.34 project by obtaining the appointment of receivers or assignments
149.35 of rents and profits under sections 559.17 and 576.01, except
149.36 that the limitation relating to the minimum amounts of the
150.1 original principal balances of mortgages specified in sections
150.2 559.17, subdivision 2, clause (2); and 576.01, subdivision 2,
150.3 does not apply.
150.4 Sec. 39. Minnesota Statutes 1998, section 475.52,
150.5 subdivision 1, is amended to read:
150.6 Subdivision 1. [STATUTORY CITIES.] Any statutory city may
150.7 issue bonds or other obligations for the acquisition or
150.8 betterment of public buildings, means of garbage disposal,
150.9 hospitals, nursing homes, homes for the aged, schools,
150.10 libraries, museums, art galleries, parks, playgrounds, stadia,
150.11 sewers, sewage disposal plants, subways, streets, sidewalks,
150.12 warning systems; for any utility or other public convenience
150.13 from which a revenue is or may be derived; for a permanent
150.14 improvement revolving fund; for changing, controlling or
150.15 bridging streams and other waterways; for the acquisition and
150.16 betterment of bridges and roads within two miles of the
150.17 corporate limits for the acquisition of development rights in
150.18 the form of conservation easements under chapter 84C; and for
150.19 acquisition of equipment for snow removal, street construction
150.20 and maintenance, or fire fighting. Without limitation by the
150.21 foregoing the city may issue bonds to provide money for any
150.22 authorized corporate purpose except current expenses.
150.23 Sec. 40. Minnesota Statutes 1998, section 475.52,
150.24 subdivision 3, is amended to read:
150.25 Subd. 3. [COUNTIES.] Any county may issue bonds for the
150.26 acquisition or betterment of courthouses, county administrative
150.27 buildings, health or social service facilities, correctional
150.28 facilities, law enforcement centers, jails, morgues, libraries,
150.29 parks, and hospitals, for roads and bridges within the county or
150.30 bordering thereon and for road equipment and machinery and for
150.31 ambulances and related equipment for the acquisition of
150.32 development rights in the form of conservation easements under
150.33 chapter 84C, and for capital equipment for the administration
150.34 and conduct of elections providing the equipment is uniform
150.35 countywide, except that the power of counties to issue bonds in
150.36 connection with a library shall not exist in Hennepin county.
151.1 Sec. 41. Minnesota Statutes 1998, section 475.52,
151.2 subdivision 4, is amended to read:
151.3 Subd. 4. [TOWNS.] Any town may issue bonds for the
151.4 acquisition and betterment of town halls, town roads and
151.5 bridges, nursing homes and homes for the aged, and for
151.6 acquisition of equipment for snow removal, road construction or
151.7 maintenance, and fire fighting for the acquisition of
151.8 development rights in the form of conservation easements under
151.9 chapter 84C and for the acquisition and betterment of any
151.10 buildings to house and maintain town equipment.
151.11 Sec. 42. Minnesota Statutes 1998, section 477A.011,
151.12 subdivision 36, is amended to read:
151.13 Subd. 36. [CITY AID BASE.] (a) Except as provided in
151.14 paragraphs (b), (c), and (d) to (k), "city aid base" means, for
151.15 each city, the sum of the local government aid and equalization
151.16 aid it was originally certified to receive in calendar year 1993
151.17 under Minnesota Statutes 1992, section 477A.013, subdivisions 3
151.18 and 5, and the amount of disparity reduction aid it received in
151.19 calendar year 1993 under Minnesota Statutes 1992, section
151.20 273.1398, subdivision 3.
151.21 (b) For aids payable in 1996 and thereafter, a city that in
151.22 1992 or 1993 transferred an amount from governmental funds to
151.23 its sewer and water fund, which amount exceeded its net levy for
151.24 taxes payable in the year in which the transfer occurred, has a
151.25 "city aid base" equal to the sum of (i) its city aid base, as
151.26 calculated under paragraph (a), and (ii) one-half of the
151.27 difference between its city aid distribution under section
151.28 477A.013, subdivision 9, for aids payable in 1995 and its city
151.29 aid base for aids payable in 1995.
151.30 (c) The city aid base for any city with a population less
151.31 than 500 is increased by $40,000 for aids payable in calendar
151.32 year 1995 and thereafter, and the maximum amount of total aid it
151.33 may receive under section 477A.013, subdivision 9, paragraph
151.34 (c), is also increased by $40,000 for aids payable in calendar
151.35 year 1995 only, provided that:
151.36 (i) the average total tax capacity rate for taxes payable
152.1 in 1995 exceeds 200 percent;
152.2 (ii) the city portion of the tax capacity rate exceeds 100
152.3 percent; and
152.4 (iii) its city aid base is less than $60 per capita.
152.5 (d) The city aid base for a city is increased by $20,000 in
152.6 1998 and thereafter and the maximum amount of total aid it may
152.7 receive under section 477A.013, subdivision 9, paragraph (c), is
152.8 also increased by $20,000 in calendar year 1998 only, provided
152.9 that:
152.10 (i) the city has a population in 1994 of 2,500 or more;
152.11 (ii) the city is located in a county, outside of the
152.12 metropolitan area, which contains a city of the first class;
152.13 (iii) the city's net tax capacity used in calculating its
152.14 1996 aid under section 477A.013 is less than $400 per capita;
152.15 and
152.16 (iv) at least four percent of the total net tax capacity,
152.17 for taxes payable in 1996, of property located in the city is
152.18 classified as railroad property.
152.19 (e) The city aid base for a city is increased by $200,000
152.20 in 1999 and thereafter and the maximum amount of total aid it
152.21 may receive under section 477A.013, subdivision 9, paragraph
152.22 (c), is also increased by $200,000 in calendar year 1999 only,
152.23 provided that:
152.24 (i) the city was incorporated as a statutory city after
152.25 December 1, 1993;
152.26 (ii) its city aid base does not exceed $5,600; and
152.27 (iii) the city had a population in 1996 of 5,000 or more.
152.28 (f) The city aid base for a city is increased by $450,000
152.29 in 1999 to 2008 and the maximum amount of total aid it may
152.30 receive under section 477A.013, subdivision 9, paragraph (c), is
152.31 also increased by $450,000 in calendar year 1999 only, provided
152.32 that:
152.33 (i) the city had a population in 1996 of at least 50,000;
152.34 (ii) its population had increased by at least 40 percent in
152.35 the ten-year period ending in 1996; and
152.36 (iii) its city's net tax capacity for aids payable in 1998
153.1 is less than $700 per capita.
153.2 (g) Beginning in 2002, the city aid base for a city is
153.3 equal to the sum of its city aid base in 2001 and the amount of
153.4 additional aid it was certified to receive under section 477A.06
153.5 in 2001. For 2002 only, the maximum amount of total aid a city
153.6 may receive under section 477A.013, subdivision 9, paragraph
153.7 (c), is also increased by the amount it was certified to receive
153.8 under section 477A.06 in 2001.
153.9 (h) The city aid base for a city is increased by $150,000
153.10 for aids payable in 2000 and thereafter, and the maximum amount
153.11 of total aid it may receive under section 477A.013, subdivision
153.12 9, paragraph (c), is also increased by $150,000 in calendar year
153.13 2000 only, provided that:
153.14 (1) the city has a population that is greater than 1,000
153.15 and less than 2,500;
153.16 (2) its commercial and industrial percentage for aids
153.17 payable in 1999 is greater than 45 percent; and
153.18 (3) the total market value of all commercial and industrial
153.19 property in the city for assessment year 1999 is at least 15
153.20 percent less than the total market value of all commercial and
153.21 industrial property in the city for assessment year 1998.
153.22 (i) The city aid base for a city is increased by $200,000
153.23 in 2000 and thereafter, and the maximum amount of total aid it
153.24 may receive under section 477A.013, subdivision 9, paragraph
153.25 (c), is also increased by $200,000 in calendar year 2000 only,
153.26 provided that:
153.27 (1) the city had a population in 1997 of 2,500 or more;
153.28 (2) the net tax capacity of the city used in calculating
153.29 its 1999 aid under section 477A.013 is less than $650 per
153.30 capita;
153.31 (3) the pre-1940 housing percentage of the city used in
153.32 calculating 1999 aid under section 477A.013 is greater than 12
153.33 percent;
153.34 (4) the 1999 local government aid of the city under section
153.35 477A.013 is less than 20 percent of the amount that the formula
153.36 aid of the city would have been if the need increase percentage
154.1 was 100 percent; and
154.2 (5) the city aid base of the city used in calculating aid
154.3 under section 477A.013 is less than $7 per capita.
154.4 (j) The city aid base for a city is increased by $225,000
154.5 in calendar years 2000 to 2002 and the maximum amount of total
154.6 aid it may receive under section 477A.013, subdivision 9,
154.7 paragraph (c), is also increased by $225,000 in calendar year
154.8 2000 only, provided that:
154.9 (1) the city had a population of at least 5,000;
154.10 (2) its population had increased by at least 50 percent in
154.11 the ten-year period ending in 1997;
154.12 (3) the city is located outside of the Minneapolis-St. Paul
154.13 metropolitan statistical area as defined by the United States
154.14 Bureau of the Census; and
154.15 (4) the city received less than $30 per capita in aid under
154.16 section 477A.013, subdivision 9, for aids payable in 1999.
154.17 (k) The city aid base for a city is increased by $102,000
154.18 in 2000 and thereafter, and the maximum amount of total aid it
154.19 may receive under section 477A.013, subdivision 9, paragraph
154.20 (c), is also increased by $102,000 in calendar year 2000 only,
154.21 provided that:
154.22 (1) the city has a population in 1997 of 2,000 or more;
154.23 (2) the net tax capacity of the city used in calculating
154.24 its 1999 aid under section 477A.013 is less than $455 per
154.25 capita;
154.26 (3) the net levy of the city used in calculating 1999 aid
154.27 under section 477A.013 is greater than $195 per capita; and
154.28 (4) the 1999 local government aid of the city under section
154.29 477A.013 is less than 38 percent of the amount that the formula
154.30 aid of the city would have been if the need increase percentage
154.31 was 100 percent.
154.32 Sec. 43. Minnesota Statutes 1998, section 477A.06,
154.33 subdivision 1, is amended to read:
154.34 Subdivision 1. [ELIGIBILITY.] (a) For assessment years
154.35 1998, 1999, and 2000, for all class 4d property on which
154.36 construction was begun before January 1, 1999, the assessor
155.1 shall determine the difference between the actual net tax
155.2 capacity and the net tax capacity that would be determined for
155.3 the property if the class rates for assessment year 1997 were in
155.4 effect.
155.5 (b) In calendar years 1999, 2000, and 2001, each city shall
155.6 be eligible for aid equal to (i) the amount by which the sum of
155.7 the differences determined in clause (a) for the corresponding
155.8 assessment year exceeds 2.5 two percent of the city's total
155.9 taxable net tax capacity for taxes payable in 1998, multiplied
155.10 by (ii) the city government's average local tax rate for taxes
155.11 payable in 1998.
155.12 Sec. 44. Laws 1997, chapter 231, article 2, section 68,
155.13 subdivision 3, as amended by Laws 1998, chapter 389, article 3,
155.14 section 36, is amended to read:
155.15 Subd. 3. [MORATORIUM ON CHANGES IN ELDERLY ASSISTED LIVING
155.16 FACILITIES; ASSESSMENT PRACTICES.] (a) An assessor may not
155.17 change the current practices or policies used generally in
155.18 assessing elderly assisted living facilities.
155.19 (b) An assessor may not change the 1999 assessment of an
155.20 existing elderly assisted living facility, unless the change is
155.21 made as a result of a change in ownership, occupancy, or use of
155.22 the facility. This paragraph does not apply to:
155.23 (1) a facility that was constructed during calendar year
155.24 1997, 1998, or 1999;
155.25 (2) a facility that was converted to an elderly assisted
155.26 living facility during calendar year 1997, 1998, or 1999; or
155.27 (3) a change in market value.
155.28 (c) This subdivision expires and no longer applies on the
155.29 earlier of:
155.30 (1) the enactment of legislation establishing criteria for
155.31 the property taxation of elderly assisted living facilities; or
155.32 (2) final adjournment of the 1999 regular legislative
155.33 session December 31, 1999.
155.34 Sec. 45. Laws 1997, First Special Session chapter 3,
155.35 section 27, is amended to read:
155.36 Sec. 27. [TAXPAYER'S PERSONAL INFORMATION; DISCLOSURE.]
156.1 (a) An owner of property in Washington or Ramsey county
156.2 that is subject to property taxation must be informed in a clear
156.3 and conspicuous manner in writing on a form sent to property
156.4 taxpayers that the property owner's name, address, and other
156.5 information may be used, rented, or sold for business purposes,
156.6 including surveys, marketing, and solicitation.
156.7 (b) If the property owner so requests on the form provided,
156.8 then any such list generated by the county and sold for business
156.9 purposes must exclude the owner's name and address if the
156.10 business purpose is conducting surveys, marketing, or
156.11 solicitation.
156.12 (c) This section expires August 1, 1999 2001.
156.13 Sec. 46. [ABATEMENT OF TAXES.]
156.14 Subdivision 1. [PROPERTY DEFINED.] As used in this section
156.15 and section 47, "property" means property located in Lake county
156.16 that meets the following description:
156.17 All that part of Government Lot Two (2) of Section One (1)
156.18 in Township Fifty-two (52) North, Range Eleven (11) West of the
156.19 Fourth Principal Meridian, lying within the following described
156.20 lines:
156.21 Commencing at a point on the North-South quarter line of
156.22 said Section 1 which is 20 feet south of the center of said
156.23 Section 1 measured along said North-South quarter line;
156.24 thence easterly at a right angle to said North-South
156.25 quarter line a distance of 5 feet to the point of Beginning;
156.26 thence continuing in an easterly direction at a right angle
156.27 to said North-South quarter line a distance of 335 feet;
156.28 thence southerly at a right angle to the last described
156.29 line a distance of 80 feet;
156.30 thence easterly at a right angle to the last described line
156.31 a distance of 210 feet;
156.32 thence southerly at a right angle to the last described
156.33 line a distance of 255 feet;
156.34 thence southeasterly at an angle of 102 degrees to the last
156.35 described line to the ordinary low-water mark of Agate Bay;
156.36 thence easterly along said ordinary low-water mark to the
157.1 East boundary line of said Government Lot 2;
157.2 thence in a northerly direction along said East boundary
157.3 line to a point on said East boundary line which is 75 feet
157.4 distant in a northerly direction from the East-West quarter line
157.5 of said Section 1, extended, as measured along said East
157.6 boundary line;
157.7 thence in a northwesterly direction to a point which is 190
157.8 feet easterly measured at a right angle to the North-South
157.9 quarter line of said Section 1 from a point on the North-South
157.10 quarter line, which point is 725 feet northerly of the center of
157.11 said Section 1 when measured along said North-South quarter
157.12 line;
157.13 thence in a westerly direction at a right angle to said
157.14 North-South quarter line a distance of 185 feet;
157.15 thence southerly along a line parallel to and 5 feet
157.16 distant easterly from said North-South quarter line a distance
157.17 of 230 feet;
157.18 thence easterly at a right angle to the last described line
157.19 a distance of 130 feet;
157.20 thence southerly at a right angle to the last described
157.21 line a distance of 119.27 feet;
157.22 thence westerly at a right angle to the last described line
157.23 a distance of 130 feet;
157.24 thence southerly along a line parallel to and 5 feet
157.25 distant easterly from said North-South quarter line a distance
157.26 of 395.73 feet to the point of beginning.
157.27 Subd. 2. [AUTHORIZATION.] Upon a majority vote of its
157.28 members, the governing bodies of each of Lake county, the city
157.29 of Two Harbors, and Lake Superior independent school district
157.30 No. 381, may abate the taxes levied on the property described in
157.31 subdivision 1 in 1979 to 1990, payable in 1980 to 1991, as well
157.32 as any interest and penalties due on those taxes.
157.33 Sec. 47. [RECORDING OF CONVEYANCE AUTHORIZED.]
157.34 Notwithstanding Minnesota Statutes, section 272.12, or any
157.35 other law to the contrary, if the governing bodies of Lake
157.36 county, the city of Two Harbors, and Lake Superior independent
158.1 school district No. 381 have all abated the taxes, interest, and
158.2 penalties as provided in section 46, subdivision 2, the county
158.3 auditor may record the conveyance of the property described in
158.4 section 46, subdivision 1.
158.5 Sec. 48. [LOCAL PERFORMANCE AID RECIPIENTS; OTHER AID
158.6 INCREASES.]
158.7 (a) If a county received local performance aid under
158.8 Minnesota Statutes, section 477A.05, in calendar year 1999, the
158.9 amount of homestead and agricultural credit aid determined and
158.10 payable to the county under Minnesota Statutes, section
158.11 273.1398, in 2000 and subsequent years is increased by the
158.12 amount of performance aid it received in 1999.
158.13 (b) If a city received local performance aid under
158.14 Minnesota Statutes, section 477A.05, in calendar year 1999, the
158.15 city aid base of the city under Minnesota Statutes, section
158.16 477A.011, subdivision 36, is increased for aid payable in 2000
158.17 and subsequent years by the amount of performance aid it
158.18 received in 1999, and the maximum amount of total aid it may
158.19 receive under Minnesota Statutes, section 477A.013, subdivision
158.20 9, paragraph (c), is also increased by that amount in calendar
158.21 year 2000 only.
158.22 (c) For purposes of determining the limitation on aid
158.23 increases under Minnesota Statutes, section 477A.013,
158.24 subdivision 9, paragraph (b), for aid payable in 2000, the sum
158.25 of the aid to all cities in 2000 does not include the aid
158.26 increase under paragraph (a) of this section.
158.27 Sec. 49. [RECOMMENDATIONS ON UTILITY TAX POLICY.]
158.28 The commissioner of revenue, upon consultation with the
158.29 commissioner of public service and other appropriate state
158.30 agencies, shall convene meetings of representatives from
158.31 utilities which pay personal property taxes on generation
158.32 facilities and local governments in which those facilities are
158.33 sited. These meetings shall assess policy issues related to the
158.34 taxation of Minnesota utility generation facilities in a
158.35 changing energy market, including:
158.36 (1) the effects of future restructuring of the electric
159.1 industry;
159.2 (2) impacts on revenue to local governments and debt
159.3 issuance;
159.4 (3) evolution of utility tax policy in Minnesota and other
159.5 states;
159.6 (4) sufficiency of Minnesota's future electric power
159.7 supply; and
159.8 (5) any other relevant issues, including environmental,
159.9 labor, and consumer issues.
159.10 The meetings shall be open to any interested parties. The
159.11 commissioner shall examine utility tax policy issues and make
159.12 recommendations, as warranted, on the future of the personal
159.13 property tax on generation facilities and the replacement of
159.14 revenues that would be lost to local units of government as a
159.15 result of a partial or full exemption of these personal property
159.16 taxes.
159.17 The commissioner shall report on the progress of these
159.18 meetings, including options being considered and a plan for
159.19 completing the report, to the chairs of the senate committees on
159.20 taxes and jobs, energy and community development, the house
159.21 committees on taxes and commerce, and the governor, by January
159.22 15, 2000, with a final report to those same officials by
159.23 December 1, 2000.
159.24 Sec. 50. [383D.74] [DAKOTA COUNTY; ADMINISTRATIVE
159.25 PENALTIES.]
159.26 Subdivision 1. [PENALTIES.] The Dakota county board may
159.27 impose an administrative penalty for violation of an ordinance
159.28 enacted under chapter 103F. No penalty may be imposed unless
159.29 the owner has received notice, served personally or by mail, of
159.30 the alleged violation and an opportunity for a hearing before a
159.31 person authorized by the county board to conduct the hearing. A
159.32 decision that a violation occurred must be in writing. The
159.33 amount of the penalty with interest may not exceed the amount
159.34 allowed for a single misdemeanor violation. A person aggrieved
159.35 by a decision under this section may have the decision reviewed
159.36 in the district court. If a penalty imposed under this section
160.1 is unpaid for more than 60 days after the date when payment is
160.2 due, the county board may certify the penalty to the county
160.3 auditor for collection to the same extent and in the same manner
160.4 provided by law for the assessment and collection of real estate
160.5 taxes.
160.6 Subd. 2. [EXPIRATION.] The authority to impose a penalty
160.7 under this section expires on December 31, 2000.
160.8 Sec. 51. [LEGISLATIVE INTENT.]
160.9 It is the intent of the legislature that one-half of the
160.10 actual property tax savings to the taxpayer as a result of the
160.11 class rate reduction under section 19, for manufactured home
160.12 parks, for taxes payable in 2000 to 2004, be reinvested by the
160.13 taxpayer in capital improvements of the manufactured home park
160.14 or used for direct assistance to homeowners for home
160.15 improvements.
160.16 Sec. 52. [2000 CHARITY CARE AID.]
160.17 Subdivision 1. [PURPOSE.] The purpose of charity care aid
160.18 is to prevent or reduce the reliance on county property taxes to
160.19 meet the cost of providing medical care to individuals who are
160.20 indigent and who do not reside in the county.
160.21 Subd. 2. [QUALIFICATION.] A county qualifies for payment
160.22 under this section in 2000 only if it contains a hospital that
160.23 has a medical assistance disproportionate population adjustment
160.24 as determined under section 256.969, subdivision 9, greater than
160.25 16 percent.
160.26 Subd. 3. [REPORTS BY HOSPITALS AND COUNTIES.] (a) By June
160.27 1, 1999, a hospital described in subdivision 2 must file a
160.28 report with the county in which it is located setting forth its
160.29 audited financial statements and a schedule setting forth the
160.30 aggregate amount of charity care for calendar year 1998 that
160.31 meets the following criteria:
160.32 (1) the patient is from a county other than the county in
160.33 which the hospital is located; and
160.34 (2) the hospital has made a preliminary determination that:
160.35 (i) the patient is not eligible for any public health care
160.36 program or it cannot be determined whether the person is
161.1 eligible for any public health care program; and
161.2 (ii) the person is uninsured or it cannot be determined if
161.3 the person is uninsured or the person has insufficient resources
161.4 to pay the cost of services delivered by the hospital.
161.5 (b) By July 1, 1999, each county must report to the
161.6 commissioner of revenue the total amount of charity care
161.7 reported to it by hospitals under this subdivision.
161.8 Subd. 4. [AMOUNT OF AID.] (a) Subject to the limitation in
161.9 paragraph (b), payment to a county under this section is equal
161.10 to the aggregate amount of charity care, as reported under
161.11 subdivision 3, for calendar year 1998.
161.12 (b) The total of all payments under this section may not
161.13 exceed $10,000,000. If the amounts reported under subdivision 3
161.14 for all counties exceeds $10,000,000, the distributions to each
161.15 county must be allocated in proportion to the total amount of
161.16 uncompensated care reported to the commissioner by the county so
161.17 that the total of the payments does not exceed $10,000,000.
161.18 Subd. 5. [PAYMENT DATES.] The aid amounts must be paid as
161.19 provided in section 477A.015.
161.20 Subd. 6. [USE OF FUNDS.] Each county that receives a
161.21 payment under this section must remit all charity care aid funds
161.22 to hospitals described in subdivision 2 that apply to the county
161.23 for reimbursement. If the aid a county receives is less than
161.24 the total amount of uncompensated care reported by eligible
161.25 hospitals in the county, the aid amounts remitted to the
161.26 hospitals must be proportional to the amounts reported.
161.27 Subd. 7. [REPORT TO THE COMMISSIONER.] By March 15, 2001,
161.28 each county that receives the aid must file a report with the
161.29 commissioner of revenue describing how charity care aids were
161.30 spent, and verifying that they were paid to hospitals described
161.31 in subdivision 2 for charity care purposes for individuals who
161.32 do not reside in the county.
161.33 Subd. 8. [NOTICE TO COUNTIES.] The commissioner of revenue
161.34 shall annually notify the governing body of each county,
161.35 providing information, to the extent available to the
161.36 commissioner, regarding the amount of reimbursements paid under
162.1 this section attributable to care provided to residents of that
162.2 county.
162.3 Subd. 9. [HENNEPIN COUNTY LEVY LIMIT ADJUSTMENT.] For
162.4 taxes levied in 1999 only, the levy limit for Hennepin county
162.5 under Minnesota Statutes, section 275.71, subdivision 4, is
162.6 reduced by an amount equal to the amount of charity aid
162.7 allocated to the Hennepin county medical center.
162.8 Subd. 10. [APPROPRIATION.] The amount sufficient to make
162.9 the payments under this section is appropriated from the general
162.10 fund to the commissioner of revenue.
162.11 Sec. 53. [PROPERTY TAX ABATEMENT; PROPERTY DAMAGED BY
162.12 TORNADO.]
162.13 Subdivision 1. [ABATEMENT AMOUNT.] The county auditor
162.14 shall grant an abatement for taxes payable in 1999 to any
162.15 property in a qualifying county, as defined in Laws 1998,
162.16 chapter 383, section 20, that contains a structure that has been
162.17 determined by the assessor to have lost over 50 percent of its
162.18 estimated market value due to wind damage sustained on March 29,
162.19 1998, excluding residential homestead property and the portion
162.20 of agricultural homestead property consisting of the house,
162.21 garage, and surrounding one acre of land. The abatement is
162.22 equal to 75 percent of the amount by which the net tax capacity
162.23 of the structure was reduced by the wind damage, multiplied by
162.24 the payable 1999 total local net tax capacity tax rate, plus 75
162.25 percent of the amount by which the referendum market value of
162.26 the structure was reduced by the wind damage, multiplied by the
162.27 payable 1999 total market value tax rate. If the amount of the
162.28 abatement exceeds the remaining tax due on the property for
162.29 taxes payable in 1999, a refund shall be issued to the taxpayer
162.30 by the county treasurer by June 30, 1999.
162.31 Subd. 2. [CERTIFICATION.] The amount of abatements granted
162.32 under this section shall be reported to the commissioner of
162.33 revenue by the county auditor by June 30, 1999, in a form
162.34 prescribed by the commissioner. The commissioner may require
162.35 the county to provide other information necessary to verify the
162.36 accuracy of the abatement amounts submitted.
163.1 Subd. 3. [PAYMENT.] The commissioner shall make payments
163.2 equal to the amount of abatements granted to each county by
163.3 August 30, 1999. The county treasurer shall distribute the
163.4 payments to the affected taxing jurisdictions equal to the
163.5 amount of the tax that was abated as part of the October 1999
163.6 regular settlement as provided in Minnesota Statutes, section
163.7 276.111.
163.8 Subd. 4. [APPROPRIATION.] The amount necessary to fund the
163.9 payments required under this section is appropriated from the
163.10 general fund to the commissioner of revenue in fiscal year 2000.
163.11 Sec. 54. [REPEALER.]
163.12 (a) Minnesota Statutes 1998, section 273.11, subdivision
163.13 10, is repealed.
163.14 (b) Minnesota Statutes 1998, section 477A.05, is repealed.
163.15 (c) Laws 1998, chapter 389, article 3, section 45, is
163.16 repealed.
163.17 Sec. 55. [EFFECTIVE DATES.]
163.18 Sections 1 and 2 are effective for petitions filed on or
163.19 after the day following final enactment.
163.20 Sections 3, 4, 5, 9, paragraph (c), 10, 11, 15, 16, 17,
163.21 paragraphs (a) and (b), 19, 20, 21, 22, 25, and 33 are effective
163.22 for taxes levied in 1999, payable in 2000, and thereafter.
163.23 Section 6 is effective for assessment years 1999 through
163.24 2001.
163.25 Section 7 is effective for improvements made on or after
163.26 July 1, 1999.
163.27 Section 8 is effective retroactively for property taxes
163.28 payable in 1998 and thereafter.
163.29 Section 9, paragraph (h), is effective for taxes payable in
163.30 1999 and subsequent years.
163.31 Section 13 is effective beginning with the 1999 assessment,
163.32 taxes payable in 2000 and thereafter. For eligibility for the
163.33 1999 assessment year under section 13, paragraph (b), the owner
163.34 or the person who is actively farming the property must notify
163.35 the county assessor by July 1, 1999, and furnish to the assessor
163.36 the information required by the assessor to determine whether
164.1 the qualifying criteria has been met for the 1999 assessment on
164.2 the agricultural property.
164.3 Sections 12, 14, 24, 29, 36 to 38, 44, and 53 are effective
164.4 the day following final enactment.
164.5 Sections 17, paragraph (c), 18, and 54, paragraph (c), are
164.6 effective for taxes levied in 2000, payable in 2001 and
164.7 thereafter.
164.8 Section 20, paragraph (f), is effective for the 2000
164.9 assessment and thereafter, for taxes payable in 2001 and
164.10 thereafter, except that for taxes payable in 2001, the date for
164.11 filing an application with the county assessor under section 20,
164.12 paragraph (f), clause (3), is September 1, 1999.
164.13 Section 26 is effective for penalties and interest on
164.14 property taxes collected after June 30, 1999.
164.15 Section 27 is effective for property tax refunds for claims
164.16 for property taxes payable filed in 2000 and thereafter for
164.17 taxes payable in 2000 and thereafter.
164.18 Sections 22, 48, and 54, paragraph (b), are effective for
164.19 aids payable in 2000 and thereafter.
164.20 Sections 28 and 30 to 32 are effective for deferrals of
164.21 property taxes payable in 2000 and thereafter. The changes in
164.22 the annual tax amount percentage and the maximum annual
164.23 household income in sections 28 and 30 to 32 apply to all
164.24 homeowners and all property taxes deferred beginning in payable
164.25 2000, including those homeowners who initially qualified under
164.26 this program for taxes payable in 1999.
164.27 Section 45 applies to Washington county only and is
164.28 effective the day after the chief clerical officer of Washington
164.29 county files a certificate of approval that complies with
164.30 Minnesota Statutes, section 645.021, subdivision 3.
164.31 Sections 46 and 47 are effective the day following final
164.32 enactment, upon approval by and compliance with Minnesota
164.33 Statutes, section 645.021, subdivision 3, by the governing
164.34 bodies of Lake county, the city of Two Harbors, and Lake
164.35 Superior independent school district No. 381.
164.36 ARTICLE 6
165.1 LEVY AUTHORIZATION AND LEVY LIMITS
165.2 Section 1. Minnesota Statutes 1998, section 204B.135, is
165.3 amended by adding a subdivision to read:
165.4 Subd. 5. [REDISTRICTING EXPENSES.] The county board may
165.5 levy a tax not to exceed $1 per capita in the year ending in "0"
165.6 to pay costs incurred in the year ending in "1" or "2" that are
165.7 reasonably related to the redistricting of election districts,
165.8 establishment of precinct boundaries, designation of polling
165.9 places, and the updating of voter records in the statewide
165.10 registration system. The county auditor shall distribute to
165.11 each municipality in the county on a per capita basis 25 percent
165.12 of the amount levied as provided in this subdivision, based on
165.13 the population of the municipality in the most recent census.
165.14 This levy is not subject to statutory levy limits.
165.15 Sec. 2. [275.078] [AUTHORIZATION; TAX RATE INCREASE.]
165.16 On or before October 1, 1999, and each subsequent year, the
165.17 county auditor shall certify to the governing body of each home
165.18 rule charter or statutory city in the county and to the county
165.19 board, the following information for the taxing jurisdiction:
165.20 (1) the taxing jurisdiction's certified levy under section
165.21 275.08 for the previous year, taxes payable in the current year,
165.22 excluding any amount levied to pay general obligation bonds,
165.23 less (i) the areawide portion of the levy under section 276A.06,
165.24 subdivision 3, or 473F.08, subdivision 3, if any, for taxes
165.25 payable in the following year; and (ii) the sum of the net tax
165.26 capacity adjustment amount and the fiscal disparities adjustment
165.27 amount under section 273.1398, subdivision 2, if any, for aids
165.28 payable in the following year;
165.29 (2) the taxing jurisdiction's taxable net tax capacity for
165.30 the current assessment year, for taxes payable in the following
165.31 year; and
165.32 (3) the tax rate obtained by dividing the amount in clause
165.33 (1) by the amount in clause (2), rounded to the nearest
165.34 hundredth percent.
165.35 In order to impose a tax rate for purposes other than to
165.36 pay general obligation bonds for taxes payable in the following
166.1 year that is higher than the tax rate certified by the county
166.2 auditor under clause (3), the governing body of the city or the
166.3 county board must adopt a resolution, after holding a public
166.4 hearing, authorizing a higher tax rate and file a copy of the
166.5 resolution with the county auditor on or before October 20,
166.6 1999, and each year thereafter. A county auditor is prohibited
166.7 from fixing a tax rate for purposes other than to pay general
166.8 obligation bonds for taxes payable in the following year that is
166.9 higher than the rate certified under clause (3) if a resolution
166.10 has not been filed, unless the higher rate is due solely to a
166.11 reduction in the taxing jurisdiction's net tax capacity
166.12 certified under clause (2) resulting from classification
166.13 changes, exemptions, tax court judgments, or clerical or
166.14 administrative errors made by the county. For purposes of this
166.15 section, "public hearing" includes, but is not limited to,
166.16 regularly scheduled city council hearings and county board
166.17 meetings.
166.18 Sec. 3. Minnesota Statutes 1998, section 275.70,
166.19 subdivision 5, is amended to read:
166.20 Subd. 5. [SPECIAL LEVIES.] "Special levies" means those
166.21 portions of ad valorem taxes levied by a local governmental unit
166.22 for the following purposes or in the following manner:
166.23 (1) to pay the costs of the principal and interest on
166.24 bonded indebtedness or to reimburse for the amount of liquor
166.25 store revenues used to pay the principal and interest due on
166.26 municipal liquor store bonds in the year preceding the year for
166.27 which the levy limit is calculated;
166.28 (2) to pay the costs of principal and interest on
166.29 certificates of indebtedness issued for any corporate purpose
166.30 except for the following:
166.31 (i) tax anticipation or aid anticipation certificates of
166.32 indebtedness;
166.33 (ii) certificates of indebtedness issued under sections
166.34 298.28 and 298.282;
166.35 (iii) certificates of indebtedness used to fund current
166.36 expenses or to pay the costs of extraordinary expenditures that
167.1 result from a public emergency; or
167.2 (iv) certificates of indebtedness used to fund an
167.3 insufficiency in tax receipts or an insufficiency in other
167.4 revenue sources;
167.5 (3) to provide for the bonded indebtedness portion of
167.6 payments made to another political subdivision of the state of
167.7 Minnesota;
167.8 (4) to fund payments made to the Minnesota state armory
167.9 building commission under section 193.145, subdivision 2, to
167.10 retire the principal and interest on armory construction bonds;
167.11 (5) for unreimbursed expenses related to flooding that
167.12 occurred during the first half of calendar year 1997, as allowed
167.13 by the commissioner of revenue under section 275.74, paragraph
167.14 (b);
167.15 (6) for local units of government located in an area
167.16 designated by the Federal Emergency Management Agency pursuant
167.17 to a major disaster declaration issued for Minnesota by
167.18 President Clinton after April 1, 1997, and before June 11, 1997,
167.19 for the amount of tax dollars lost due to abatements authorized
167.20 under section 273.123, subdivision 7, and Laws 1997, chapter
167.21 231, article 2, section 64, to the extent that they are related
167.22 to the major disaster and to the extent that neither the state
167.23 or federal government reimburses the local government for the
167.24 amount lost;
167.25 (7) property taxes approved by voters which are levied
167.26 against the referendum market value as provided under section
167.27 275.61;
167.28 (8) to fund matching requirements needed to qualify for
167.29 federal or state grants or programs to the extent that either
167.30 (i) the matching requirement exceeds the matching requirement in
167.31 calendar year 1997, or (ii) it is a new matching requirement
167.32 that didn't exist prior to 1998;
167.33 (9) to pay the expenses reasonably and necessarily incurred
167.34 in preparing for or repairing the effects of natural disaster
167.35 including the occurrence or threat of widespread or severe
167.36 damage, injury, or loss of life or property resulting from
168.1 natural causes, in accordance with standards formulated by the
168.2 emergency services division of the state department of public
168.3 safety, as allowed by the commissioner of revenue under section
168.4 275.74, paragraph (b);
168.5 (10) for the amount of tax revenue lost due to abatements
168.6 authorized under section 273.123, subdivision 7, for damage
168.7 related to the tornadoes of March 29, 1998, to the extent that
168.8 neither the state or federal government provides reimbursement
168.9 for the amount lost;
168.10 (11) pay amounts required to correct an error in the levy
168.11 certified to the county auditor by a city or county in a levy
168.12 year, but only to the extent that when added to the preceding
168.13 year's levy it is not in excess of an applicable statutory,
168.14 special law or charter limitation, or the limitation imposed on
168.15 the governmental subdivision by sections 275.70 to 275.74 in the
168.16 preceding levy year; and
168.17 (12) to pay an abatement under section 469.1815.; and
168.18 (13) to pay the operating or maintenance costs of a county
168.19 jail as authorized in section 641.01 or 641.262, or of a
168.20 correctional facility as defined in section 241.021, subdivision
168.21 1, paragraph (5), to the extent that the county can demonstrate
168.22 to the commissioner of revenue that the amount has been included
168.23 in the county budget as a direct result of a rule, minimum
168.24 requirement, minimum standard, or directive of the department of
168.25 corrections. If the county utilizes this special levy, any
168.26 amount levied by the county in the previous levy year for the
168.27 purposes specified under this clause and included in the
168.28 county's previous year's levy limitation computed under section
168.29 275.71, shall be deducted from the levy limit base under section
168.30 275.71, subdivision 2, when determining the county's current
168.31 year levy limitation. The county shall provide the necessary
168.32 information to the commissioner of revenue for making this
168.33 determination.
168.34 Sec. 4. Minnesota Statutes 1998, section 275.71,
168.35 subdivision 2, is amended to read:
168.36 Subd. 2. [LEVY LIMIT BASE.] (a) The levy limit base for a
169.1 local governmental unit for taxes levied in 1997 shall be equal
169.2 to the sum of:
169.3 (1) the amount the local governmental unit levied in 1996,
169.4 less any amount levied for debt, as reported to the department
169.5 of revenue under section 275.62, subdivision 1, clause (1), and
169.6 less any tax levied in 1996 against market value as provided for
169.7 in section 275.61;
169.8 (2) the amount of aids the local governmental unit was
169.9 certified to receive in calendar year 1997 under sections
169.10 477A.011 to 477A.03 before any reductions for state tax
169.11 increment financing aid under section 273.1399, subdivision 5;
169.12 (3) the amount of homestead and agricultural credit aid the
169.13 local governmental unit was certified to receive under section
169.14 273.1398 in calendar year 1997 before any reductions for tax
169.15 increment financing aid under section 273.1399, subdivision 5;
169.16 (4) the amount of local performance aid the local
169.17 governmental unit was certified to receive in calendar year 1997
169.18 under section 477A.05; and
169.19 (5) the amount of any payments certified to the local
169.20 government unit in 1997 under sections 298.28 and 298.282.
169.21 If a governmental unit was not required to report under
169.22 section 275.62 for taxes levied in 1997, the commissioner shall
169.23 request information on levies used for debt from the local
169.24 governmental unit and adjust its levy limit base accordingly.
169.25 (b) The levy limit base for a local governmental unit for
169.26 taxes levied in 1998 is equal to its adjusted levy limit base in
169.27 the previous year, subject to any adjustments under section
169.28 275.72 and multiplied by the increase that would have occurred
169.29 under subdivision 3, clause (3), if that clause had been in
169.30 effect for taxes levied in 1997.
169.31 (c) The levy limit base for a city with a population
169.32 greater than 2,500 for taxes levied in 1999 is limited to its
169.33 adjusted levy limit base in the previous year, subject to
169.34 adjustments under section 275.72.
169.35 (d) The levy limit base for a county for taxes levied in
169.36 1999 is limited to the difference between (1) its adjusted levy
170.1 limit base in the previous year subject to adjustments under
170.2 section 275.72, and (2) one-half of the county's share of the
170.3 net cost to the state for assumption of district court costs, as
170.4 reported by the supreme court to the commissioner of revenue
170.5 under section 273.1398, subdivision 4a, paragraph (a).
170.6 Sec. 5. Minnesota Statutes 1998, section 275.71,
170.7 subdivision 3, is amended to read:
170.8 Subd. 3. [ADJUSTED LEVY LIMIT BASE.] For taxes levied in
170.9 1998 and 1999, the adjusted levy limit is equal to the levy
170.10 limit base computed under subdivision 2 or section 275.72,
170.11 multiplied by:
170.12 (1) one plus a percentage equal to the percentage growth in
170.13 the implicit price deflator; and
170.14 (2) for all cities and for counties outside of the
170.15 seven-county metropolitan area, one plus a percentage equal to
170.16 the percentage increase in number of households, if any, for the
170.17 most recent 12-month period for which data is available; and for
170.18 counties located in the seven-county metropolitan area, one plus
170.19 a percentage equal to the greater of the percentage increase in
170.20 the number of households in the county or the percentage
170.21 increase in the number of households in the entire seven-county
170.22 metropolitan area for the most recent 12-month period for which
170.23 data is available; and
170.24 (3) one plus a percentage equal to the percentage increase
170.25 in the taxable market value of the jurisdiction due to new
170.26 construction of class 3 and class 5 property, as defined in
170.27 section 273.13, subdivisions 24 and 31, for the most recent year
170.28 for which data are available.
170.29 Sec. 6. Minnesota Statutes 1998, section 275.71,
170.30 subdivision 4, is amended to read:
170.31 Subd. 4. [PROPERTY TAX LEVY LIMIT.] For taxes levied in
170.32 1998 and 1999, the property tax levy limit for a local
170.33 governmental unit is equal to its adjusted levy limit base
170.34 determined under subdivision 3 plus any additional levy
170.35 authorized under section 275.73, which is levied against net tax
170.36 capacity, reduced by the sum of (1) the total amount of aids
171.1 that the local governmental unit is certified to receive under
171.2 sections 477A.011 to 477A.014, (2) homestead and agricultural
171.3 aids it is certified to receive under section 273.1398, (3)
171.4 local performance aid it is certified to receive under section
171.5 477A.05, (4) taconite aids under sections 298.28 and 298.282
171.6 including any aid which was required to be placed in a special
171.7 fund for expenditure in the next succeeding year, (5) flood loss
171.8 aid under section 273.1383, and (6) low-income housing aid under
171.9 sections 477A.06 and 477A.065.
171.10 Sec. 7. Minnesota Statutes 1998, section 465.82, is
171.11 amended by adding a subdivision to read:
171.12 Subd. 4. [DIFFERENTIAL TAXATION.] The plan for cooperation
171.13 and combination adopted in accordance with subdivision 1 may
171.14 establish that the tax rate of the local government unit with
171.15 the lesser tax rate prior to the effective date of combination
171.16 shall be increased in substantially equal proportions over not
171.17 more than six years to equality with the tax rate on the
171.18 property already within the borders of the local unit of
171.19 government with the higher tax rate. The appropriate period of
171.20 time, if any, for transition to the higher tax rate shall be
171.21 based on the time reasonably required to effectively provide
171.22 equal municipal services to the residents of the local unit of
171.23 government with the lower tax rate.
171.24 Sec. 8. Minnesota Statutes 1998, section 473.252,
171.25 subdivision 2, is amended to read:
171.26 Subd. 2. [SOURCES OF FUNDS.] The council shall credit to
171.27 the tax base revitalization account within the fund the amount,
171.28 if any, provided for under subdivision 4, and the amount, if
171.29 any, distributed to the council under section 473F.08,
171.30 subdivision 3b.
171.31 Sec. 9. Laws 1988, chapter 645, section 3, is amended to
171.32 read:
171.33 Sec. 3. [TAX; PAYMENT OF EXPENSES.]
171.34 (a) The tax levied by the hospital district under Minnesota
171.35 Statutes, section 447.34, must not be levied at a rate that
171.36 exceeds 2 mills .0063 percent of taxable market value. The
172.1 proceeds
172.2 (b) .0048 percent of taxable market value of that tax in
172.3 paragraph (a) may be used only for acquisition, betterment, and
172.4 maintenance of the district's hospital and nursing home
172.5 facilities and equipment, and not for administrative or salary
172.6 expenses.
172.7 (c) .0015 percent of taxable market value of the tax in
172.8 paragraph (a) may be used solely for the purpose of capital
172.9 expenditures as it relates to ambulance acquisitions for the
172.10 Cook ambulance service and the Orr ambulance service and not for
172.11 administrative or salary expenses.
172.12 The part of the levy referred to in paragraph (c) must be
172.13 administered by the Cook Hospital and passed on directly to the
172.14 Cook area ambulance service board and the city of Orr to be held
172.15 in trust until funding for a new ambulance is needed by either
172.16 the Cook ambulance service or the Orr ambulance service.
172.17 Sec. 10. Laws 1997, chapter 231, article 3, section 9, is
172.18 amended to read:
172.19 Sec. 9. [EFFECTIVE DATE.]
172.20 Sections 1 and 3 to 7, as amended by Laws 1998, chapter
172.21 389, article 4, sections 1 to 6, are effective for taxes levied
172.22 in 1997 and 1998 through 1999, payable in 1998 and 1999 through
172.23 2000.
172.24 Upon compliance with Minnesota Statutes, section 645.021,
172.25 subdivision 3, by the governing body of Faribault county or the
172.26 city of Blue Earth, section 8 is effective for taxes levied in
172.27 1997 and 1998 through 1999 in the county or city that approves
172.28 it.
172.29 Sec. 11. [CEMETERY LEVY FOR SAWYER BY CARLTON COUNTY.]
172.30 Subdivision 1. [LEVY AUTHORIZED.] Notwithstanding other
172.31 law to the contrary, the Carlton county board of commissioners
172.32 may levy in and for the unorganized township of Sawyer an amount
172.33 up to $1,000 annually for cemetery purposes, beginning with
172.34 taxes payable in 2000 and ending with taxes payable in 2009.
172.35 Subd. 2. [EFFECTIVE DATE.] This section is effective June
172.36 1, 1999, without local approval.
173.1 Sec. 12. [COUNTY OF GOODHUE; LEVY LIMITS AND AID
173.2 ADJUSTMENTS.]
173.3 Subdivision 1. [LEVY LIMIT BASE.] The levy limit base of
173.4 the county of Goodhue for taxes levied in 1999 under Minnesota
173.5 Statutes, section 275.71, subdivision 2, is increased by
173.6 $422,324.
173.7 Subd. 2. [TEMPORARY COUNTY AGRICULTURAL AND HOMESTEAD
173.8 CREDIT AID ADJUSTMENTS.] For aids paid in calendar year 1999
173.9 only, the county of Goodhue shall receive an additional aid
173.10 payment of $422,324 under the provisions of Minnesota Statutes,
173.11 section 273.1398. For aids paid in calendar years 2000 and
173.12 2001, the aid paid to the county of Goodhue under section
173.13 273.1398, subdivision 2, shall be reduced by $211,162. The
173.14 additional aid paid in 1999 shall not be included in calculating
173.15 any limitation on levies or expenditures in calendar year 1999
173.16 but the reductions in calendar years 2000 and 2001 shall be
173.17 included in calculating any limitation on levies or expenditures.
173.18 Subd. 3. [APPROPRIATION.] $422,324 is appropriated in
173.19 fiscal year 2000 to the commissioner of revenue from the general
173.20 fund to make the payment under subdivision 2.
173.21 Subd. 4. [EFFECTIVE DATE.] Subdivision 1 is effective for
173.22 taxes levied in 1999 upon compliance with the governing body of
173.23 the county of Goodhue with Minnesota Statutes, section 645.021,
173.24 subdivision 3. Subdivision 2 is effective for aids payable in
173.25 calendar years 1999 to 2001.
173.26 Sec. 13. [CITY OF GRANT; LEVY LIMITS.]
173.27 Subdivision 1. [LEVY LIMIT BASE INCREASE.] The levy limit
173.28 base for the city of Grant for taxes levied in 1999 under
173.29 Minnesota Statutes, section 275.71, subdivision 2, is increased
173.30 by an amount equal to the difference between (1) the amount the
173.31 city would have raised if it had imposed a tax rate equal to
173.32 one-third of the statewide average city tax effort rate for
173.33 taxes payable in 1999, as defined in Minnesota Statutes, section
173.34 477A.011, subdivision 35, on its net tax capacity for taxes
173.35 payable in 1999, as defined in Minnesota Statutes, section
173.36 477A.011, subdivision 20; and (2) the amount it levied for taxes
174.1 payable in 1999.
174.2 Subd. 2. [LOCAL APPROVAL; EFFECTIVE DATE.] This section is
174.3 effective upon compliance by the governing body of the city of
174.4 Grant with Minnesota Statutes, section 645.021, subdivision 3,
174.5 for taxes levied in 1999, payable in 2000.
174.6 Sec. 14. [NORTH FORK CROW RIVER WATERSHED DISTRICT.]
174.7 Subdivision 1. [LEVY AUTHORIZED.] Notwithstanding
174.8 Minnesota Statutes, section 103D.905, subdivision 3, the North
174.9 Fork Crow River watershed district may annually levy up to
174.10 .04836 percent of taxable market value, or $140,000, whichever
174.11 is less, for its administrative fund.
174.12 Subd. 2. [EFFECTIVE DATE.] This section is effective
174.13 without local approval beginning with taxes levied in 1999,
174.14 payable in 2000.
174.15 Sec. 15. [SAUK RIVER WATERSHED DISTRICT.]
174.16 Subdivision 1. [LEVY AUTHORIZED.] Notwithstanding
174.17 Minnesota Statutes, section 103D.905, subdivision 3, the Sauk
174.18 river watershed district may annually levy up to $200,000 for
174.19 its administrative fund for taxes payable in 2000, 2001, 2002,
174.20 2003, and 2004.
174.21 Subd. 2. [EFFECTIVE DATE.] This section is effective the
174.22 day following final enactment.
174.23 Sec. 16. [CITY OF STILLWATER; DIVISION INTO URBAN AND
174.24 RURAL SERVICE DISTRICTS.]
174.25 Notwithstanding the provisions of Minnesota Statutes,
174.26 section 272.67, subdivisions 1 and 6, in order to carry out an
174.27 orderly annexation agreement entered into for the annexation of
174.28 a part or all of Stillwater township, the city of Stillwater may
174.29 divide its area into urban service districts and rural service
174.30 districts constituting separate taxing districts for the purpose
174.31 of all municipal property taxes including those levied for the
174.32 payment of bonds and judgments and interest on them.
174.33 Sec. 17. [REPEALER.]
174.34 Minnesota Statutes 1998, section 473.252, subdivisions 4
174.35 and 5, are repealed.
174.36 Sec. 18. [EFFECTIVE DATE.]
175.1 Sections 3 to 6 and 10 are effective for taxes levied in
175.2 1999, and payable in 2000. Section 7 is effective the day
175.3 following final enactment for taxes levied in 1999 and
175.4 thereafter. Sections 8 and 17 are effective for taxes levied in
175.5 1999, payable in 2000, and thereafter.
175.6 The .0015 percent of taxable market value levy described in
175.7 section 9, paragraph (c), is effective for the cities of Cook
175.8 and Orr and the counties of St. Louis and Koochiching for
175.9 affected parts of those counties on January 1, 2000, to be
175.10 requested in the year 2000, with the first payment to be
175.11 received in 2001.
175.12 ARTICLE 7
175.13 SPECIAL TAXES
175.14 Section 1. Minnesota Statutes 1998, section 60A.19,
175.15 subdivision 6, is amended to read:
175.16 Subd. 6. [RETALIATORY PROVISIONS.] (1) When by the laws of
175.17 any other state or country any taxes, fines, deposits,
175.18 penalties, licenses, or fees, other than assessments made by an
175.19 insurance guaranty association or similar organization, in
175.20 addition to or in excess of those imposed by the laws of this
175.21 state upon foreign insurance companies and their agents doing
175.22 business in this state, other than assessments by an insurance
175.23 guaranty association or similar organization organized under the
175.24 laws of this state, are imposed on insurance companies of this
175.25 state and their agents doing business in that state or country,
175.26 or when any conditions precedent to the right to do business in
175.27 that state are imposed by the laws thereof, beyond those imposed
175.28 upon these foreign companies by the laws of this state, the same
175.29 taxes, fines, deposits, penalties, licenses, fees, and
175.30 conditions precedent shall be imposed upon every similar
175.31 insurance company of that state or country and their agents
175.32 doing or applying to do business in this state so long as these
175.33 foreign laws remain in force. Special purpose obligations or
175.34 assessments, including assessments by an insurance guaranty
175.35 association, joint underwriting association or similar
175.36 organization, or assessments imposed in connection with
176.1 particular kinds of insurance, are not taxes, licenses, or fees
176.2 as these terms are used in this section.
176.3 (2) In the event that a domestic insurance company, after
176.4 complying with all reasonable laws and rulings of any other
176.5 state or country, is refused permission by that state or country
176.6 to transact business therein after the commissioner of commerce
176.7 of Minnesota has determined that that company is solvent and
176.8 properly managed and after the commissioner has so certified to
176.9 the proper authority of that other state or country, then, and
176.10 in every such case, the commissioner may forthwith suspend or
176.11 cancel the certificate of authority of every insurance company
176.12 organized under the laws of that other state or country to the
176.13 extent that it insures, or seeks to insure, in this state
176.14 against any of the risks or hazards which that domestic company
176.15 seeks to insure against in that other state or country. Without
176.16 limiting the application of the foregoing provision, it is
176.17 hereby determined that any law or ruling of any other state or
176.18 country which prescribes to a Minnesota domestic insurance
176.19 company the premium rate or rates for life insurance issued or
176.20 to be issued outside that other state or country shall not be
176.21 reasonable.
176.22 (3) This section does not apply to insurance companies
176.23 organized or domiciled in a state or country, the laws of which
176.24 do not impose retaliatory taxes, fines, deposits, penalties,
176.25 licenses, or fees or which grant, on a reciprocal basis,
176.26 exemptions from retaliatory taxes, fines, deposits, penalties,
176.27 licenses, or fees to insurance companies domiciled in this state.
176.28 Sec. 2. Minnesota Statutes 1998, section 296A.16, is
176.29 amended by adding a subdivision to read:
176.30 Subd. 4a. [UNDYED KEROSENE; REFUNDS.] Notwithstanding
176.31 subdivision 1, the commissioner shall allow a refund of the tax
176.32 paid on undyed kerosene used exclusively for a purpose other
176.33 than as fuel for a motor vehicle using the streets and
176.34 highways. To obtain a refund, the person making the sale to an
176.35 end user must meet the Internal Revenue Service requirements for
176.36 sales from a blocked pump. A claim for a refund may be filed as
177.1 provided in this section.
177.2 Sec. 3. Minnesota Statutes 1998, section 296A.16, is
177.3 amended by adding a subdivision to read:
177.4 Subd. 4b. [RACING GASOLINE; REFUNDS.] Notwithstanding
177.5 subdivision 1, the commissioner shall allow a licensed
177.6 distributor a refund of the tax paid on leaded gasoline of 110
177.7 octane or more that does not meet ASTM specification D4814 for
177.8 gasoline and that is sold in bulk for use in nonregistered motor
177.9 vehicles. A claim for a refund may be filed as provided for in
177.10 this section.
177.11 Sec. 4. Minnesota Statutes 1998, section 297E.01, is
177.12 amended by adding a subdivision to read:
177.13 Subd. 17a. [BUSINESS DAY.] "Business day" means Monday
177.14 through Friday, excluding any holidays as defined in section
177.15 645.44.
177.16 Sec. 5. Minnesota Statutes 1998, section 297E.02,
177.17 subdivision 1, is amended to read:
177.18 Subdivision 1. [IMPOSITION.] A tax is imposed on all
177.19 lawful gambling other than (1) pull-tabs purchased and placed
177.20 into inventory after January 1, 1987, pull-tab deals or games;
177.21 and (2) tipboards purchased and placed into inventory after June
177.22 30, 1988 tipboard deals or games; and (3) items listed in
177.23 section 297E.01, subdivision 8, clauses (4) and (5), at the rate
177.24 of 9.5 9 percent on the gross receipts as defined in section
177.25 297E.01, subdivision 8, less prizes actually paid. The tax
177.26 imposed by this subdivision is in lieu of the tax imposed by
177.27 section 297A.02 and all local taxes and license fees except a
177.28 fee authorized under section 349.16, subdivision 8, or a tax
177.29 authorized under subdivision 5.
177.30 The tax imposed under this subdivision is payable by the
177.31 organization or party conducting, directly or indirectly, the
177.32 gambling.
177.33 Sec. 6. Minnesota Statutes 1998, section 297E.02,
177.34 subdivision 3, is amended to read:
177.35 Subd. 3. [COLLECTION; DISPOSITION.] Taxes imposed by this
177.36 section other than in subdivision 4 are due and payable to the
178.1 commissioner when the gambling tax return is required to be
178.2 filed. Taxes imposed by subdivision 4 are due and payable to
178.3 the commissioner on or before the last business day of the month
178.4 following the month in which the taxable sale was made. Returns
178.5 covering the taxes imposed under this section must be filed with
178.6 the commissioner on or before the 20th day of the month
178.7 following the close of the previous calendar month. The
178.8 commissioner may require that the returns be filed via magnetic
178.9 media or electronic data transfer. The proceeds, along with the
178.10 revenue received from all license fees and other fees under
178.11 sections 349.11 to 349.191, 349.211, and 349.213, must be paid
178.12 to the state treasurer for deposit in the general fund.
178.13 Sec. 7. Minnesota Statutes 1998, section 297E.02,
178.14 subdivision 4, is amended to read:
178.15 Subd. 4. [PULL-TAB AND TIPBOARD TAX.] (a) A tax is imposed
178.16 on the sale of each deal of pull-tabs and tipboards sold by a
178.17 distributor. The rate of the tax is 1.9 1.8 percent of the
178.18 ideal gross of the pull-tab or tipboard deal. The sales tax
178.19 imposed by chapter 297A on the sale of the pull-tabs and
178.20 tipboards by the distributor is imposed on the retail sales
178.21 price less the tax imposed by this subdivision. The retail sale
178.22 of pull-tabs or tipboards by the organization is exempt from
178.23 taxes imposed by chapter 297A and is exempt from all local taxes
178.24 and license fees except a fee authorized under section 349.16,
178.25 subdivision 8.
178.26 (b) The liability for the tax imposed by this section is
178.27 incurred when the pull-tabs and tipboards are delivered by the
178.28 distributor to the customer or to a common or contract carrier
178.29 for delivery to the customer, or when received by the customer's
178.30 authorized representative at the distributor's place of
178.31 business, regardless of the distributor's method of accounting
178.32 or the terms of the sale.
178.33 The tax imposed by this subdivision is imposed on all sales
178.34 of pull-tabs and tipboards, except the following:
178.35 (1) sales to the governing body of an Indian tribal
178.36 organization for use on an Indian reservation;
179.1 (2) sales to distributors licensed under the laws of
179.2 another state or of a province of Canada, as long as all
179.3 statutory and regulatory requirements are met in the other state
179.4 or province;
179.5 (3) sales of promotional tickets as defined in section
179.6 349.12; and
179.7 (4) pull-tabs and tipboards sold to an organization that
179.8 sells pull-tabs and tipboards under the exemption from licensing
179.9 in section 349.166, subdivision 2. A distributor shall require
179.10 an organization conducting exempt gambling to show proof of its
179.11 exempt status before making a tax-exempt sale of pull-tabs or
179.12 tipboards to the organization. A distributor shall identify, on
179.13 all reports submitted to the commissioner, all sales of
179.14 pull-tabs and tipboards that are exempt from tax under this
179.15 subdivision.
179.16 (c) A distributor having a liability of $120,000 or more
179.17 during a fiscal year ending June 30 must remit all liabilities
179.18 in the subsequent calendar year by a funds transfer as defined
179.19 in section 336.4A-104, paragraph (a). The funds transfer
179.20 payment date, as defined in section 336.4A-401, must be on or
179.21 before the date the tax is due. If the date the tax is due is
179.22 not a funds transfer business day, as defined in section
179.23 336.4A-105, paragraph (a), clause (4), the payment date must be
179.24 on or before the funds transfer business day next following the
179.25 date the tax is due.
179.26 (d) Any customer who purchases deals of pull-tabs or
179.27 tipboards from a distributor may file an annual claim for a
179.28 refund or credit of taxes paid pursuant to this subdivision for
179.29 unsold pull-tab and tipboard tickets. The claim must be filed
179.30 with the commissioner on a form prescribed by the commissioner
179.31 by March 20 of the year following the calendar year for which
179.32 the refund is claimed. The refund must be filed as part of the
179.33 customer's February monthly return. The refund or credit is
179.34 equal to 1.9 1.8 percent of the face value of the unsold
179.35 pull-tab or tipboard tickets, provided that the refund or credit
179.36 will be 1.95 1.85 percent of the face value of the unsold
180.1 pull-tab or tipboard tickets for claims for a refund or credit
180.2 of taxes filed on the February 1999 2000 monthly return. The
180.3 refund claimed will be applied as a credit against tax owing
180.4 under this chapter on the February monthly return. If the
180.5 refund claimed exceeds the tax owing on the February monthly
180.6 return, that amount will be refunded. The amount refunded will
180.7 bear interest pursuant to section 270.76 from 90 days after the
180.8 claim is filed.
180.9 Sec. 8. Minnesota Statutes 1998, section 297E.02,
180.10 subdivision 6, is amended to read:
180.11 Subd. 6. [COMBINED RECEIPTS TAX.] In addition to the taxes
180.12 imposed under subdivisions 1 and 4, a tax is imposed on the
180.13 combined receipts of the organization. As used in this section,
180.14 "combined receipts" is the sum of the organization's gross
180.15 receipts from lawful gambling less gross receipts directly
180.16 derived from the conduct of bingo, raffles, and paddlewheels, as
180.17 defined in section 297E.01, subdivision 8, for the fiscal year.
180.18 The combined receipts of an organization are subject to a tax
180.19 computed according to the following schedule:
180.20 If the combined receipts for the The tax is:
180.21 fiscal year are:
180.22 Not over $500,000 zero
180.23 Over $500,000, but not over
180.24 $700,000 1.9 1.8 percent of the
180.25 amount over $500,000, but
180.26 not over $700,000
180.27 Over $700,000, but not over
180.28 $900,000 $3,800 $3,600 plus 3.8
180.29 3.6 percent of the amount
180.30 over $700,000, but
180.31 not over $900,000
180.32 Over $900,000 $11,400 $10,800 plus 5.7
180.33 5.4 percent of the
180.34 amount over $900,000
180.35 Sec. 9. Minnesota Statutes 1998, section 297F.01,
180.36 subdivision 23, is amended to read:
181.1 Subd. 23. [WHOLESALE PRICE.] "Wholesale price" means the
181.2 established price for which a manufacturer or person sells a
181.3 tobacco product to a distributor, exclusive of any discount or
181.4 other reduction.
181.5 Sec. 10. Minnesota Statutes 1998, section 297F.17,
181.6 subdivision 6, is amended to read:
181.7 Subd. 6. [TIME LIMIT FOR BAD DEBT DEDUCTION REFUND.]
181.8 Claims for refund must be filed with the commissioner within one
181.9 year of during the one-year period beginning with the timely
181.10 filing date of the taxpayer's federal income tax return
181.11 containing the bad debt deduction that is being claimed.
181.12 Claimants under this subdivision are subject to the notice
181.13 requirements of section 289A.38, subdivision 7.
181.14 Sec. 11. Minnesota Statutes 1998, section 297H.05, is
181.15 amended to read:
181.16 297H.05 [SELF-HAULERS.]
181.17 (a) A self-hauler of mixed municipal solid waste shall pay
181.18 the tax to the operator of the waste management facility to
181.19 which the waste is delivered at the rate imposed under section
181.20 297H.03, based on the sales price of the waste management
181.21 services.
181.22 (b) A self-hauler of non-mixed-municipal solid waste shall
181.23 pay the tax to the operator of the waste management facility to
181.24 which the waste is delivered at the rate imposed under section
181.25 297H.04.
181.26 (c) The tax imposed on the self-hauler of
181.27 non-mixed-municipal solid waste may be based either on the
181.28 capacity of the container, the actual volume, or the
181.29 weight-to-volume conversion schedule in paragraph (d). However,
181.30 the tax must be calculated by the operator using the same method
181.31 for calculating the tipping fee so that both are calculated
181.32 according to container capacity, actual volume, or weight.
181.33 (d) The weight-to-volume conversion schedule for:
181.34 (1) construction debris as defined in section 115A.03,
181.35 subdivision 7, is one ton equals 3.33 cubic yards, or $2 per
181.36 ton;
182.1 (2) industrial waste as defined in section 115A.03,
182.2 subdivision 13a, is equal to 60 cents per cubic yard. The
182.3 commissioner of revenue, after consultation with the
182.4 commissioner of the pollution control agency, shall determine,
182.5 and may publish by notice, a conversion schedule for various
182.6 industrial wastes; and
182.7 (3) infectious waste as defined in section 116.76,
182.8 subdivision 12, and pathological waste as defined in section
182.9 116.76, subdivision 14, is 150 pounds equals one cubic yard, or
182.10 60 cents per 150 pounds.
182.11 (e) For mixed municipal solid waste the tax is imposed upon
182.12 the difference between the market price and the tip fee at a
182.13 processing or disposal facility if the tip fee is less than the
182.14 market price and the political subdivision subsidizes the cost
182.15 of service at the facility. The political subdivision is liable
182.16 for the tax.
182.17 Sec. 12. Minnesota Statutes 1998, section 297H.06,
182.18 subdivision 2, is amended to read:
182.19 Subd. 2. [MATERIALS.] The tax is not imposed upon charges
182.20 to generators of mixed municipal solid waste or upon the volume
182.21 of non-mixed-municipal solid waste for waste management services
182.22 to manage the following materials:
182.23 (1) mixed municipal solid waste and non-mixed-municipal
182.24 solid waste generated outside of Minnesota;
182.25 (2) recyclable materials that are separated for recycling
182.26 by the generator, collected separately from other waste, and
182.27 recycled, to the extent the price of the service for handling
182.28 recyclable material is separately itemized;
182.29 (3) recyclable non-mixed-municipal solid waste that is
182.30 separated for recycling by the generator, collected separately
182.31 from other waste, delivered to a waste facility for the purpose
182.32 of recycling, and recycled;
182.33 (4) industrial waste, when it is transported to a facility
182.34 owned and operated by the same person that generated it;
182.35 (5) mixed municipal solid waste from a recycling facility
182.36 that separates or processes recyclable materials and reduces the
183.1 volume of the waste by at least 85 percent, provided that the
183.2 exempted waste is managed separately from other waste;
183.3 (6) recyclable materials that are separated from mixed
183.4 municipal solid waste by the generator, collected and delivered
183.5 to a waste facility that recycles at least 85 percent of its
183.6 waste, and are collected with mixed municipal solid waste that
183.7 is segregated in leakproof bags, provided that the mixed
183.8 municipal solid waste does not exceed five percent of the total
183.9 weight of the materials delivered to the facility and is
183.10 ultimately delivered to a waste facility identified as a
183.11 preferred waste management facility in county solid waste plans
183.12 under section 115A.46;
183.13 (7) through December 31, 2002, source-separated compostable
183.14 waste, if the waste is delivered to a facility exempted as
183.15 described in this clause. To initially qualify for an
183.16 exemption, a facility must apply for an exemption in its
183.17 application for a new or amended solid waste permit to the
183.18 pollution control agency. The first time a facility applies to
183.19 the agency it must certify in its application that it will
183.20 comply with the criteria in items (i) to (v) and the
183.21 commissioner of the agency shall so certify to the commissioner
183.22 of revenue who must grant the exemption. For each subsequent
183.23 calendar year, by October 1 of the preceding year, the facility
183.24 must apply to the agency for certification to renew its
183.25 exemption for the following year. The application must be filed
183.26 according to the procedures of, and contain the information
183.27 required by, the agency. The commissioner of revenue shall
183.28 grant the exemption if the commissioner of the pollution control
183.29 agency finds and certifies to the commissioner of revenue that
183.30 based on an evaluation of the composition of incoming waste and
183.31 residuals and the quality and use of the product:
183.32 (i) generators separate materials at the source;
183.33 (ii) the separation is performed in a manner appropriate to
183.34 the technology specific to the facility that:
183.35 (A) maximizes the quality of the product;
183.36 (B) minimizes the toxicity and quantity of residuals; and
184.1 (C) provides an opportunity for significant improvement in
184.2 the environmental efficiency of the operation;
184.3 (iii) the operator of the facility educates generators, in
184.4 coordination with each county using the facility, about
184.5 separating the waste to maximize the quality of the waste stream
184.6 for technology specific to the facility;
184.7 (iv) process residuals do not exceed 15 percent of the
184.8 weight of the total material delivered to the facility; and
184.9 (v) the final product is accepted for use; and
184.10 (8) waste and waste by-products for which the tax has been
184.11 paid; and
184.12 (9) daily cover for landfills that has been approved in
184.13 writing by the Minnesota pollution control agency.
184.14 Sec. 13. [EFFECTIVE DATES.]
184.15 Section 1 is effective for taxable years beginning after
184.16 December 31, 1999. Section 2 is effective retroactively for
184.17 sales made after June 30, 1998. Section 3 is effective
184.18 retroactively for sales made after January 31, 1999. Section 4
184.19 is effective August 1, 1999. Sections 5, 7, and 8 are effective
184.20 July 1, 1999. Section 6 is effective for taxes first becoming
184.21 due on or after August 1, 1999. Sections 9 and 12 are effective
184.22 the day following final enactment. Section 10 is effective for
184.23 refund claims filed on or after July 1, 1999. Section 11 is
184.24 effective for services provided on or after July 1, 1999.
184.25 ARTICLE 8
184.26 MINNESOTACARE TAXES
184.27 Section 1. Minnesota Statutes 1998, section 295.50,
184.28 subdivision 4, is amended to read:
184.29 Subd. 4. [HEALTH CARE PROVIDER.] (a) "Health care
184.30 provider" means:
184.31 (1) a person whose health care occupation is regulated or
184.32 required to be regulated by the state of Minnesota furnishing
184.33 any or all of the following goods or services directly to a
184.34 patient or consumer: medical, surgical, optical, visual,
184.35 dental, hearing, nursing services, drugs, laboratory, diagnostic
184.36 or therapeutic services;
185.1 (2) a person who provides goods and services not listed in
185.2 clause (1) that qualify for reimbursement under the medical
185.3 assistance program provided under chapter 256B;
185.4 (3) a staff model health plan company;
185.5 (4) an ambulance service required to be licensed; or
185.6 (5) a person who sells or repairs hearing aids and related
185.7 equipment or prescription eyewear.
185.8 (b) Health care provider does not include: (1) hospitals;
185.9 medical supplies distributors, except as specified under
185.10 paragraph (a), clause (5); nursing homes licensed under chapter
185.11 144A or licensed in any other jurisdiction; pharmacies; surgical
185.12 centers; bus and taxicab transportation, or any other providers
185.13 of transportation services other than ambulance services
185.14 required to be licensed; supervised living facilities for
185.15 persons with mental retardation or related conditions, licensed
185.16 under Minnesota Rules, parts 4665.0100 to 4665.9900; residential
185.17 care homes licensed under chapter 144B; board and lodging
185.18 establishments providing only custodial services that are
185.19 licensed under chapter 157 and registered under section 157.17
185.20 to provide supportive services or health supervision services;
185.21 adult foster homes as defined in Minnesota Rules, part
185.22 9555.5105; day training and habilitation services for adults
185.23 with mental retardation and related conditions as defined in
185.24 section 252.41, subdivision 3; and boarding care homes, as
185.25 defined in Minnesota Rules, part 4655.0100.;
185.26 (c) For purposes of this subdivision, "directly to a
185.27 patient or consumer" includes goods and services provided in
185.28 connection with independent medical examinations under section
185.29 65B.56 or other examinations for purposes of litigation or
185.30 insurance claims.
185.31 (2) home health agencies as defined in Minnesota Rules,
185.32 part 9505.0175, subpart 15; a person providing personal care
185.33 services and supervision of personal care services as defined in
185.34 Minnesota Rules, part 9505.0335; a person providing private duty
185.35 nursing services as defined in Minnesota Rules, part 9505.0360;
185.36 and home care providers required to be licensed under chapter
186.1 144A;
186.2 (3) a person who employs health care providers solely for
186.3 the purpose of providing patient services to its employees; and
186.4 (4) an educational institution that employs health care
186.5 providers solely for the purpose of providing patient services
186.6 to its students if the institution does not receive fee for
186.7 service payments or payments for extended coverage.
186.8 Sec. 2. Minnesota Statutes 1998, section 295.52,
186.9 subdivision 7, is amended to read:
186.10 Subd. 7. [TAX REDUCTION.] (a) Notwithstanding subdivisions
186.11 1, 1a, 2, 3, and 4, the tax imposed under this section equals
186.12 for calendar years 1998 and, 1999 shall be equal to, 2000, and
186.13 2001, 1.5 percent of the gross revenues received on or after
186.14 January 1, 1998, and before January 1, 2000. The commissioner
186.15 shall extend the reduced tax rate of 1.5 percent for gross
186.16 revenues received on or after January 1, 2000, and before
186.17 January 1, 2002, if the commissioner of finance determines that
186.18 the health care access fund structural balance projected for
186.19 fiscal year 2001 will remain positive, prior to any increase of
186.20 the one percent premium tax under section 60A.15, subdivision 1,
186.21 paragraph (h), and prior to any tax expenditures related to the
186.22 increase in the maximum tax credit for research expenses under
186.23 section 295.53, subdivision 4a, as amended by Laws 1997, chapter
186.24 225 2002.
186.25 Sec. 3. Minnesota Statutes 1998, section 295.53,
186.26 subdivision 1, is amended to read:
186.27 Subdivision 1. [EXEMPTIONS.] (a) The following payments
186.28 are excluded from the gross revenues subject to the hospital,
186.29 surgical center, or health care provider taxes under sections
186.30 295.50 to 295.57:
186.31 (1) payments received for services provided under the
186.32 Medicare program, including payments received from the
186.33 government, and organizations governed by sections 1833 and 1876
186.34 of title XVIII of the federal Social Security Act, United States
186.35 Code, title 42, section 1395, and enrollee deductibles,
186.36 coinsurance, and copayments, whether paid by the Medicare
187.1 enrollee or by a Medicare supplemental coverage as defined in
187.2 section 62A.011, subdivision 3, clause (10). Payments for
187.3 services not covered by Medicare are taxable;
187.4 (2) medical assistance payments including payments received
187.5 directly from the government or from a prepaid plan;
187.6 (3) payments received for home health care services;
187.7 (4) payments received from hospitals or surgical centers
187.8 for goods and services on which liability for tax is imposed
187.9 under section 295.52 or the source of funds for the payment is
187.10 exempt under clause (1), (2), (7), (8), or (10), or (13);
187.11 (5) payments received from health care providers for goods
187.12 and services on which liability for tax is imposed under this
187.13 chapter or the source of funds for the payment is exempt under
187.14 clause (1), (2), (7), (8), or (10), or (13);
187.15 (6) amounts paid for legend drugs, other than nutritional
187.16 products, to a wholesale drug distributor who is subject to tax
187.17 under section 295.52, subdivision 3, reduced by reimbursements
187.18 received for legend drugs under clauses (1), (2), (7), and (8);
187.19 (7) payments received under the general assistance medical
187.20 care program including payments received directly from the
187.21 government or from a prepaid plan;
187.22 (8) payments received for providing services under the
187.23 MinnesotaCare program including payments received directly from
187.24 the government or from a prepaid plan and enrollee deductibles,
187.25 coinsurance, and copayments. For purposes of this clause,
187.26 coinsurance means the portion of payment that the enrollee is
187.27 required to pay for the covered service;
187.28 (9) payments received by a health care provider or the
187.29 wholly owned subsidiary of a health care provider for care
187.30 provided outside Minnesota to a patient who is not domiciled in
187.31 Minnesota;
187.32 (10) payments received from the chemical dependency fund
187.33 under chapter 254B;
187.34 (11) payments received in the nature of charitable
187.35 donations that are not designated for providing patient services
187.36 to a specific individual or group;
188.1 (12) payments received for providing patient services
188.2 incurred through a formal program of health care research
188.3 conducted in conformity with federal regulations governing
188.4 research on human subjects. Payments received from patients or
188.5 from other persons paying on behalf of the patients are subject
188.6 to tax;
188.7 (13) payments received from any governmental agency for
188.8 services benefiting the public, not including payments made by
188.9 the government in its capacity as an employer or insurer;
188.10 (14) payments received for services provided by community
188.11 residential mental health facilities licensed under Minnesota
188.12 Rules, parts 9520.0500 to 9520.0690, community support programs
188.13 and family community support programs approved under Minnesota
188.14 Rules, parts 9535.1700 to 9535.1760, and community mental health
188.15 centers as defined in section 245.62, subdivision 2;
188.16 (15) government payments received by a regional treatment
188.17 center;
188.18 (16) payments received for hospice care services;
188.19 (17) payments received by a health care provider for
188.20 hearing aids and related equipment or prescription eyewear
188.21 delivered outside of Minnesota;
188.22 (18) payments received by a post-secondary an educational
188.23 institution from student tuition, student activity fees, health
188.24 care service fees, government appropriations, donations, or
188.25 grants. Fee for service payments and payments for extended
188.26 coverage are taxable; and
188.27 (19) payments received for services provided by: assisted
188.28 living programs and congregate housing programs;
188.29 (20) payments received from nursing homes licensed under
188.30 chapter 144A for services provided to a nursing home; and
188.31 (21) payments received for examinations for purposes of
188.32 utilization reviews, insurance claims or eligibility,
188.33 litigation, and employment, including reviews of medical records
188.34 for those purposes.
188.35 (b) Payments received by wholesale drug distributors for
188.36 legend drugs sold directly to veterinarians or veterinary bulk
189.1 purchasing organizations are excluded from the gross revenues
189.2 subject to the wholesale drug distributor tax under sections
189.3 295.50 to 295.59.
189.4 Sec. 4. Minnesota Statutes 1998, section 295.55,
189.5 subdivision 2, is amended to read:
189.6 Subd. 2. [ESTIMATED TAX; HOSPITALS; SURGICAL CENTERS.] (a)
189.7 Each hospital or surgical center must make estimated payments of
189.8 the taxes for the calendar year in monthly installments to the
189.9 commissioner within 15 days after the end of the month.
189.10 (b) Estimated tax payments are not required of hospitals or
189.11 surgical centers if: (1) the tax for the current calendar year
189.12 is less than $500; or (2) the tax for the previous calendar year
189.13 is less than $500, if the taxpayer had a tax liability and was
189.14 doing business the entire year; or (3) if a hospital has been
189.15 allowed a grant under section 144.1484, subdivision 2, for the
189.16 year.
189.17 (c) Underpayment of estimated installments bear interest at
189.18 the rate specified in section 270.75, from the due date of the
189.19 payment until paid or until the due date of the annual return at
189.20 the rate specified in section 270.75 whichever comes first. An
189.21 underpayment of an estimated installment is the difference
189.22 between the amount paid and the lesser of (1) 90 percent of
189.23 one-twelfth of the tax for the calendar year or (2) one-twelfth
189.24 of the total tax for the actual gross revenues received during
189.25 the month previous calendar year if the taxpayer had a tax
189.26 liability and was doing business the entire year.
189.27 Sec. 5. Minnesota Statutes 1998, section 295.55,
189.28 subdivision 3, is amended to read:
189.29 Subd. 3. [ESTIMATED TAX; OTHER TAXPAYERS.] (a) Each
189.30 taxpayer, other than a hospital or surgical center, must make
189.31 estimated payments of the taxes for the calendar year in
189.32 quarterly installments to the commissioner by April 15, July 15,
189.33 October 15, and January 15 of the following calendar year.
189.34 (b) Estimated tax payments are not required if: (1) the
189.35 tax for the current calendar year is less than $500; or (2) the
189.36 tax for the previous calendar year is less than $500, if the
190.1 taxpayer had a tax liability and was doing business the entire
190.2 year.
190.3 (c) Underpayment of estimated installments bear interest at
190.4 the rate specified in section 270.75, from the due date of the
190.5 payment until paid or until the due date of the annual return at
190.6 the rate specified in section 270.75 whichever comes first. An
190.7 underpayment of an estimated installment is the difference
190.8 between the amount paid and the lesser of (1) 90 percent of
190.9 one-quarter of the tax for the calendar year or (2) one-quarter
190.10 of the total tax for the actual gross revenues received during
190.11 the quarter previous calendar year if the taxpayer had a tax
190.12 liability and was doing business the entire year.
190.13 Sec. 6. Minnesota Statutes 1998, section 295.57, is
190.14 amended by adding a subdivision to read:
190.15 Subd. 4. [SAMPLING TECHNIQUES.] The commissioner may use
190.16 statistical or other sampling techniques consistent with
190.17 generally accepted auditing standards in examining returns or
190.18 records and making assessments.
190.19 Sec. 7. [HEALTH CARE ACCESS FUND TRANSFER.]
190.20 $27,000,000 is appropriated for fiscal year 2000;
190.21 $27,000,000 is appropriated for fiscal year 2001; and
190.22 $30,900,000 is appropriated for fiscal year 2002 from the
190.23 general fund to the commissioner of finance for deposit in the
190.24 health care access fund under Minnesota Statutes, section
190.25 16A.724.
190.26 Sec. 8. [EFFECTIVE DATE.]
190.27 The provisions of section 1, striking paragraph (c), and
190.28 section 3, clause (21), are effective for services provided
190.29 after December 31, 1998. The rest of section 1, the rest of
190.30 section 3 and sections 4 and 5 are effective for payments
190.31 received on or after January 1, 2000. Section 6 is effective
190.32 the day following final enactment.
190.33 ARTICLE 9
190.34 TACONITE TAXATION
190.35 Section 1. Minnesota Statutes 1998, section 298.24,
190.36 subdivision 1, is amended to read:
191.1 Subdivision 1. (a) For concentrate produced in 1997 and
191.2 1998 1999, there is imposed upon taconite and iron sulphides,
191.3 and upon the mining and quarrying thereof, and upon the
191.4 production of iron ore concentrate therefrom, and upon the
191.5 concentrate so produced, a tax of $2.141 per gross ton of
191.6 merchantable iron ore concentrate produced therefrom.
191.7 (b) For concentrates produced in 1999 2000 and subsequent
191.8 years, the tax rate shall be equal to the preceding year's tax
191.9 rate plus an amount equal to the preceding year's tax rate
191.10 multiplied by the percentage increase in the implicit price
191.11 deflator from the fourth quarter of the second preceding year to
191.12 the fourth quarter of the preceding year. "Implicit price
191.13 deflator" for the gross national product means the implicit
191.14 price deflator prepared by the bureau of economic analysis of
191.15 the United States Department of Commerce.
191.16 (c) On concentrates produced in 1997 and thereafter, an
191.17 additional tax is imposed equal to three cents per gross ton of
191.18 merchantable iron ore concentrate for each one percent that the
191.19 iron content of the product exceeds 72 percent, when dried at
191.20 212 degrees Fahrenheit.
191.21 (d) The tax shall be imposed on the average of the
191.22 production for the current year and the previous two years. The
191.23 rate of the tax imposed will be the current year's tax rate.
191.24 This clause shall not apply in the case of the closing of a
191.25 taconite facility if the property taxes on the facility would be
191.26 higher if this clause and section 298.25 were not applicable.
191.27 (e) If the tax or any part of the tax imposed by this
191.28 subdivision is held to be unconstitutional, a tax of $2.141 per
191.29 gross ton of merchantable iron ore concentrate produced shall be
191.30 imposed.
191.31 (f) Consistent with the intent of this subdivision to
191.32 impose a tax based upon the weight of merchantable iron ore
191.33 concentrate, the commissioner of revenue may indirectly
191.34 determine the weight of merchantable iron ore concentrate
191.35 included in fluxed pellets by subtracting the weight of the
191.36 limestone, dolomite, or olivine derivatives or other basic flux
192.1 additives included in the pellets from the weight of the
192.2 pellets. For purposes of this paragraph, "fluxed pellets" are
192.3 pellets produced in a process in which limestone, dolomite,
192.4 olivine, or other basic flux additives are combined with
192.5 merchantable iron ore concentrate. No subtraction from the
192.6 weight of the pellets shall be allowed for binders, mineral and
192.7 chemical additives other than basic flux additives, or moisture.
192.8 (g)(1) Notwithstanding any other provision of this
192.9 subdivision, for the first two years of a plant's production of
192.10 direct reduced ore, no tax is imposed under this section. As
192.11 used in this paragraph, "direct reduced ore" is ore that results
192.12 in a product that has an iron content of at least 75 percent.
192.13 For the third year of a plant's production of direct reduced
192.14 ore, the rate to be applied to direct reduced ore is 25 percent
192.15 of the rate otherwise determined under this subdivision. For
192.16 the fourth such production year, the rate is 50 percent of the
192.17 rate otherwise determined under this subdivision; for the fifth
192.18 such production year, the rate is 75 percent of the rate
192.19 otherwise determined under this subdivision; and for all
192.20 subsequent production years, the full rate is imposed.
192.21 (2) Subject to clause (1), production of direct reduced ore
192.22 in this state is subject to the tax imposed by this section, but
192.23 if that production is not produced by a producer of taconite or
192.24 iron sulfides, the production of taconite or iron sulfides
192.25 consumed in the production of direct reduced iron in this state
192.26 is not subject to the tax imposed by this section on taconite or
192.27 iron sulfides.
192.28 Sec. 2. Minnesota Statutes 1998, section 298.28,
192.29 subdivision 9a, is amended to read:
192.30 Subd. 9a. [TACONITE ECONOMIC DEVELOPMENT FUND.] (a) 15.4
192.31 cents per ton for distributions in 1996, 1998, 1999, and 2000
192.32 and 20.4 cents per ton for distributions in 1997 shall, 2001,
192.33 and 2002 must be paid to the taconite economic development
192.34 fund. No distribution shall be made under this paragraph in any
192.35 year in which total industry production falls below 30 million
192.36 tons.
193.1 (b) An amount equal to 50 percent of the tax under section
193.2 298.24 for concentrate sold in the form of pellet chips and
193.3 fines not exceeding 5/16 inch in size and not including crushed
193.4 pellets shall be paid to the taconite economic development
193.5 fund. The amount paid shall not exceed $700,000 annually for
193.6 all companies. If the initial amount to be paid to the fund
193.7 exceeds this amount, each company's payment shall be prorated so
193.8 the total does not exceed $700,000.
193.9 Sec. 3. Minnesota Statutes 1998, section 298.28,
193.10 subdivision 9b, is amended to read:
193.11 Subd. 9b. [TACONITE ENVIRONMENTAL FUND.] Five cents per
193.12 ton for distributions in 1998, 1999, and 2000 shall, 2001, and
193.13 2002 must be paid to the taconite environmental fund for use
193.14 under section 298.2961. No distribution may be made under this
193.15 paragraph in any year in which total industry production falls
193.16 below 30,000,000 tons.
193.17 Sec. 4. Minnesota Statutes 1998, section 298.296,
193.18 subdivision 4, is amended to read:
193.19 Subd. 4. [TEMPORARY LOAN AUTHORITY.] (a) The board may
193.20 recommend that up to $7,500,000 from the corpus of the trust may
193.21 be used for loans, grants, or equity investments as provided in
193.22 this subdivision. The money would be available for loans for
193.23 construction and equipping of facilities constituting (1) a
193.24 value added iron products plant, which may be either a new plant
193.25 or a facility incorporated into an existing plant that produces
193.26 iron upgraded to a minimum of 75 percent iron content or any
193.27 iron alloy with a total minimum metallic content of 90 percent;
193.28 or (2) a new mine or minerals processing plant for any mineral
193.29 subject to the net proceeds tax imposed under section 298.015.
193.30 A loan under this paragraph may not exceed $5,000,000 for any
193.31 facility.
193.32 (b) Additionally, the board must reserve the first
193.33 $2,000,000 of the net interest, dividends, and earnings arising
193.34 from the investment of the trust after June 30, 1996, to be used
193.35 for additional grants for the purposes set forth in paragraph
193.36 (a). This amount must be reserved until it is used for the
194.1 grants or until June 30, 1999, whichever is earlier.
194.2 (c) Additionally, the board may recommend that up to
194.3 $5,500,000 from the corpus of the trust may be used for
194.4 additional grants for the purposes set forth in paragraph (a).
194.5 (d) The board may require that it receive an equity
194.6 percentage in any project to which it contributes under this
194.7 section.
194.8 (e) The authority to make loans and grants under this
194.9 subdivision terminates June 30, 1999.
194.10 Sec. 5. [MINNESOTA MINERALS 21ST CENTURY FUND
194.11 APPROPRIATION.]
194.12 Subdivision 1. [APPROPRIATION.] $20,000,000 is
194.13 appropriated in fiscal year 2000 from the general fund to the
194.14 Minnesota minerals 21st century fund, if a bill styled as H.F.
194.15 No. 2390 is enacted in 1999 and creates such a fund.
194.16 Notwithstanding any other law enacted during the 1999 regular
194.17 legislative session, the maximum total appropriation authorized
194.18 for the purposes of the Minnesota minerals 21st century fund
194.19 under all laws enacted during the 1999 regular legislative
194.20 session is $20,000,000. Any amounts appropriated in any other
194.21 law enacted during the 1999 legislative session that would cause
194.22 the appropriation to exceed $20,000,000 are canceled. This
194.23 limitation does not apply to the appropriation transfer
194.24 contained in 1999 H.F. No. 2390, article 2, section 71.
194.25 Subd. 2. [MATCHING REQUIREMENT.] If a bill styled as H.F.
194.26 No. 2390 is enacted in 1999 and it provides for creation of the
194.27 Minnesota minerals 21st century fund, the commissioner of the
194.28 iron range resources and rehabilitation board shall, upon the
194.29 recommendation of the board, match the funds allocated under
194.30 subdivision 1 to the extent they are used for a loan or equity
194.31 investment meeting the requirements of the provision creating
194.32 the Minnesota minerals 21st century fund within H.F. No. 2390.
194.33 Notwithstanding Minnesota Statutes, section 645.33, this
194.34 subdivision supersedes any contrary provisions of H.F. No. 2390
194.35 that is enacted in 1999.
194.36 ARTICLE 10
195.1 TAX INCREMENT FINANCING
195.2 Section 1. Minnesota Statutes 1998, section 273.1399,
195.3 subdivision 6, is amended to read:
195.4 Subd. 6. [EXEMPT DISTRICTS.] (a) The provisions of this
195.5 section do not apply to exempt tax increment financing districts
195.6 as specified by this subdivision.
195.7 (b) A tax increment financing district for an ethanol
195.8 production facility that satisfies all of the following
195.9 requirements is exempt:
195.10 (1) The district is an economic development district, that
195.11 qualifies under section 469.176, subdivision 4c, paragraph (a),
195.12 clause (1).
195.13 (2) The facility is certified by the commissioner of
195.14 agriculture to qualify for state payments for ethanol
195.15 development under section 41A.09 to the extent funds are
195.16 available.
195.17 (3) Increments from the district are used only to finance
195.18 the qualifying ethanol development project located in the
195.19 district or to pay for administrative costs of the district.
195.20 (4) The district is located outside of the seven-county
195.21 metropolitan area, as defined in section 473.121.
195.22 (5) The tax increment financing plan was approved by a
195.23 resolution of the county board.
195.24 (6) The exemption provided by this paragraph applies until
195.25 the first year after the total amount of increment for the
195.26 district exceeds $1,500,000. The county auditor shall notify
195.27 the commissioner of revenue of the expiration of the exemption
195.28 by June 1 of the year in which the auditor projects the revenues
195.29 from increments will exceed $1,500,000. On or before the
195.30 expiration of the exemption, the municipality may elect to make
195.31 a qualifying local contribution under paragraph (d) in lieu of
195.32 the state aid reduction.
195.33 (c) A qualified housing district is exempt.
195.34 (d)(1) A district is exempt if the municipality elects at
195.35 the time of approving the tax increment financing plan for the
195.36 district to make a qualifying local contribution. To qualify
196.1 for the exemption in each year, the authority or the
196.2 municipality must make a qualifying local contribution equal to
196.3 the listed percentages of increment from the district or
196.4 subdistrict:
196.5 (A) for an economic development district, a housing
196.6 district, or a renewal and renovation district, ten percent;
196.7 (B) for a redevelopment district, a housing district, a
196.8 mined underground space district, a hazardous substance
196.9 subdistrict, or a soils condition district, five percent.
196.10 (2) If the municipality elects to make a qualifying
196.11 contribution and fails to make the required contribution for a
196.12 year, the state aid reduction applies for the year. The state
196.13 aid reduction equals the greater of (A) the required local
196.14 contribution or (B) the amount of the aid reduction that applies
196.15 under subdivision 3. For a district exempt under paragraph (b),
196.16 no qualifying local contribution is required for years in which
196.17 the district is exempt.
196.18 (3)(A) If the sum of required local contributions for all
196.19 districts in the municipality exceeds two percent of city net
196.20 tax capacity as defined in section 477A.011, subdivision 20, for
196.21 a year, the municipality's total required local contribution for
196.22 that year is limited to two percent of net tax capacity to
196.23 qualify for the exemption under this subdivision. The
196.24 municipality may allocate the contribution among the districts
196.25 on which it has made elections as it determines appropriate.
196.26 (B) If a municipality makes an election under this
196.27 subdivision for a district in a year in which item (A) applies,
196.28 a minimum annual qualifying contribution must be made for the
196.29 district equal to the lesser of 0.25 percent of city net tax
196.30 capacity or three percent of increment revenues. This minimum
196.31 contribution applies for the life of the district for each year
196.32 that the restriction in item (A) applies and is in addition to
196.33 the contribution required by item (A).
196.34 (4) The amount of the local contribution must be made out
196.35 of unrestricted money of the authority or municipality, such as
196.36 the general fund, a property tax levy, or a federal or a state
197.1 grant-in-aid which may be spent for general government
197.2 purposes. The local contribution may not be made, directly or
197.3 indirectly, with tax increments or developer payments as defined
197.4 under section 469.1766. The local contribution must be used to
197.5 pay project costs and cannot be used for general government
197.6 purposes or for improvements or costs that the authority or
197.7 municipality planned to incur absent the project. The authority
197.8 or municipality may request contributions from other local
197.9 government entities that will benefit from the district's
197.10 activities. These contributions reduce the local contribution
197.11 required of the municipality or authority by this paragraph.
197.12 Cities, counties, towns, and schools may contribute to paying
197.13 these costs, notwithstanding any other law to the contrary.
197.14 (5) The municipality may make a local contribution in
197.15 excess of the required contribution for a year. If it does so,
197.16 the municipality may credit the excess to a local contribution
197.17 account for the district. The balance in the account may be
197.18 used to meet the requirements for qualifying local contributions
197.19 for later years. No interest or investment earnings may be
197.20 credited or imputed to the account, except those (A) actually
197.21 paid by the municipality out of its unrestricted funds or by
197.22 another person or entity, other than a developer as used in
197.23 section 469.1766, and (B) used as required for a qualifying
197.24 local contribution.
197.25 (6) If the state contributes to the project costs through a
197.26 direct grant or similar incentive, the required local
197.27 contribution is reduced by one-half of the dollar amount of the
197.28 state grant or other similar incentive.
197.29 Sec. 2. Minnesota Statutes 1998, section 469.176,
197.30 subdivision 4g, is amended to read:
197.31 Subd. 4g. [GENERAL GOVERNMENT USE PROHIBITED.] (a) These
197.32 revenues shall not be used to circumvent existing levy limit
197.33 law. No revenues derived from tax increment from any district,
197.34 whether certified before or after August 1, 1979, shall be used
197.35 for the acquisition, construction, renovation, operation, or
197.36 maintenance of a building to be used primarily and regularly for
198.1 conducting the business of a municipality, county, school
198.2 district, or any other local unit of government or the state or
198.3 federal government or for a commons area used as a public park,
198.4 or a facility used for social, recreational, or conference
198.5 purposes. This provision shall not prohibit the use of revenues
198.6 derived from tax increments for the construction or renovation
198.7 of a parking structure, a commons area used as a public park, or
198.8 a facility used for social, recreational, or conference purposes
198.9 and not primarily for conducting the business of the
198.10 municipality or of a privately owned facility for conference
198.11 purposes.
198.12 (b) If any publicly owned facility used for social,
198.13 recreational, or conference purposes and financed in whole or in
198.14 part from revenues derived from a district is operated or
198.15 managed by an entity other than the authority, the operating and
198.16 management policies of the facility must be approved by the
198.17 governing body of the authority.
198.18 (c)(1) Tax increments may not be used to pay for the cost
198.19 of public improvements, equipment, or other items, if:
198.20 (i) the improvements, equipment, or other items are located
198.21 outside of the area of the tax increment financing district from
198.22 which the increments were collected; and
198.23 (ii) the improvements, equipment, or items that (i)
198.24 primarily serve a decorative or aesthetic purpose, or (ii) serve
198.25 a functional purpose, but their cost is increased by more than
198.26 100 percent as a result of the selection of materials, design,
198.27 or type as compared with more commonly used materials, designs,
198.28 or types for similar improvements, equipment, or items.
198.29 (2) The provisions of this paragraph do not apply to
198.30 expenditures related to the rehabilitation of historic
198.31 structures that are:
198.32 (i) individually listed on the National Register of
198.33 Historic Places; or
198.34 (ii) a contributing element to a historic district listed
198.35 on the National Register of Historic Places.
198.36 Sec. 3. Minnesota Statutes 1998, section 469.1763, is
199.1 amended by adding a subdivision to read:
199.2 Subd. 6. [POOLING PERMITTED FOR DEFICITS.] (a) This
199.3 subdivision applies only to districts for which the request for
199.4 certification was made before June 2, 1997.
199.5 (b) The municipality for the district may transfer
199.6 available increments from another tax increment financing
199.7 district located in the municipality, if the transfer is
199.8 necessary to eliminate a deficit in the district to which the
199.9 increments are transferred. A deficit in the district for
199.10 purposes of this subdivision means the lesser of the following
199.11 two amounts:
199.12 (1)(i) the amount due during the calendar year to pay
199.13 preexisting obligations of the district; minus
199.14 (ii) the total increments to be collected from properties
199.15 located within the district that are available for the calendar
199.16 year, plus
199.17 (iii) total increments from properties located in other
199.18 districts in the municipality that are available to be used to
199.19 meet the district's obligations under this section, excluding
199.20 this subdivision, or other provisions of law (but excluding a
199.21 special tax under section 469.1791 and the grant program under
199.22 Laws 1997, chapter 231, article 1, section 19); or
199.23 (2) the reduction in increments collected from properties
199.24 located in the district for the calendar year as a result of the
199.25 changes in class rates in Laws 1997, chapter 231, article 1;
199.26 Laws 1998, chapter 389, article 2; and this act.
199.27 (c) A preexisting obligation means bonds issued and sold
199.28 before June 2, 1997, and bonds issued to refund such bonds or to
199.29 reimburse expenditures made in conjunction with a signed
199.30 contractual agreement entered into before June 2, 1997, to the
199.31 extent that the bonds are secured by a pledge of increments from
199.32 the tax increment financing district. For purposes of this
199.33 subdivision, bonds exclude an obligation to reimburse or pay a
199.34 developer or owner of property located in the district for
199.35 amounts incurred or paid by the developer or owner.
199.36 (d) The municipality may require a development authority,
200.1 other than a seaway port authority, to transfer available
200.2 increments for any of its tax increment financing districts in
200.3 the municipality to make up an insufficiency in another district
200.4 in the municipality, regardless of whether the district was
200.5 established by the development authority or another development
200.6 authority. This authority applies notwithstanding any law to
200.7 the contrary, but applies only to a development authority that:
200.8 (1) was established by the municipality; or
200.9 (2) the governing body of which is appointed, in whole or
200.10 part, by the municipality or an officer of the municipality or
200.11 which consists, in whole or part, of members of the governing
200.12 body of the municipality.
200.13 (e) The authority under this subdivision to spend tax
200.14 increments outside of the area of the district from which the
200.15 tax increments were collected:
200.16 (1) may only be exercised after obtaining approval of the
200.17 use of the increments, in writing, by the commissioner of
200.18 revenue;
200.19 (2) is an exception to the restrictions under section
200.20 469.176, subdivision 4i, and the other provisions of this
200.21 section, and the percentage restrictions under subdivision 2
200.22 must be calculated after deducting increments spent under this
200.23 subdivision from the total increments for the district; and
200.24 (3) applies notwithstanding the provisions of the tax
200.25 increment financing act in effect for districts for which the
200.26 request for certification was made before June 30, 1982, or any
200.27 other law to the contrary.
200.28 Sec. 4. [469.1764] [PRE-1982 DISTRICTS; POOLING RULES.]
200.29 Subdivision 1. [SCOPE; APPLICATION.] (a) This section
200.30 applies to a tax increment financing district or area added to a
200.31 district, if the request for certification of the district or
200.32 the area added to the district was made after July 31, 1979, and
200.33 before July 1, 1982.
200.34 (b) This section, section 469.1763, subdivision 6, and any
200.35 special law applying to the district are the exclusive authority
200.36 to spend tax increments on activities located outside of the
201.1 geographic area of a tax increment financing district that is
201.2 subject to this section.
201.3 (c) This section does not apply to increments from a
201.4 district that is subject to the provisions of this section, if:
201.5 (1) the district was decertified before the enactment of
201.6 this section and all increments spent on activities located
201.7 outside of the geographic area of the district were repaid and
201.8 distributed as excess increments under section 469.176,
201.9 subdivision 2; or
201.10 (2) the use of increments on activities located outside of
201.11 the geographic area of the district consists solely of payment
201.12 of debt service on bonds under section 469.129, subdivision 2,
201.13 and any bonds issued to refund bonds issued under that
201.14 subdivision.
201.15 Subd. 2. [STATE AUDITOR NOTIFICATION.] By August 1, 1999,
201.16 the state auditor shall notify in writing each authority for
201.17 which the auditor has records that the authority has a district
201.18 subject to this section.
201.19 Subd. 3. [RATIFICATION OF PAST SPENDING.] (a) The
201.20 following expenditures of increments on activities located
201.21 outside of the geographic area of a district subject to this
201.22 section are permitted:
201.23 (1) expenditures made before the earlier of (i)
201.24 notification by the state auditor or (ii) December 31, 1999; and
201.25 (2) expenditures to pay preexisting outside district
201.26 obligations.
201.27 Subd. 4. [DECERTIFICATION REQUIRED.] (a) The provisions of
201.28 this subdivision apply to any tax increment financing district
201.29 subject to this section, if increments from the district were
201.30 used on activities located outside of the geographic area of the
201.31 district.
201.32 (b) After December 31, 1999, any tax increments received by
201.33 the authority from a district subject to this subdivision may be
201.34 expended only to pay:
201.35 (1) preexisting in-district obligations;
201.36 (2) preexisting outside district obligations; and
202.1 (3) administrative expenses.
202.2 After all preexisting obligations have been paid or
202.3 defeased, the district must be decertified and any remaining
202.4 increments distributed as excess increments under section
202.5 469.176, subdivision 2.
202.6 Subd. 5. [DEFINITIONS.] (a) "Notification by the state
202.7 auditor" means the receipt by the authority or the municipality
202.8 of the final written notification from the state auditor that
202.9 its expenditures of increments from the district on activities
202.10 located outside of the geographic area of the district were not
202.11 in compliance with state law.
202.12 (b) "Preexisting outside district obligations" means:
202.13 (1) bonds secured by increments from a district subject to
202.14 this section and used to finance activities outside the
202.15 geographic area of the district, if the bonds were issued and
202.16 the pledge of increment was made before the earlier of (i)
202.17 notification by the state auditor, or (ii) April 1, 1999;
202.18 (2) bonds issued to refund bonds qualifying under clause
202.19 (1), if the refunding bonds do not increase the total amount of
202.20 tax increments required to pay the refunded bonds; and
202.21 (3) binding written agreements secured by the increments
202.22 from the district subject to this section and used to finance
202.23 activities outside the geographic area of the district, if the
202.24 agreement was entered before the earlier of (i) notification by
202.25 the state auditor or (ii) May 1, 1999.
202.26 (c) "Preexisting in-district obligations" means:
202.27 (1) bonds secured by increments from a district subject to
202.28 this section and not used to finance activities outside of the
202.29 geographic area of the district, if the bonds were issued and
202.30 the pledge of increments was made before April 1, 1999;
202.31 (2) bonds issued to refund bonds qualifying under clause
202.32 (1), if the refunding bonds do not increase the total amount of
202.33 tax increments required to pay the refunded bonds; and
202.34 (3) binding written agreements secured by increments from a
202.35 district subject to this section and not used to finance
202.36 activities outside of the geographic area of the district, if
203.1 the agreements were entered into and the pledge of increments
203.2 was made before June 30, 1999.
203.3 Sec. 5. Minnesota Statutes 1998, section 469.1771,
203.4 subdivision 1, is amended to read:
203.5 Subdivision 1. [ENFORCEMENT.] (a) The owner of taxable
203.6 property located in the city, town, school district, or county
203.7 in which the tax increment financing district is located may
203.8 bring suit for equitable relief or for damages, as provided in
203.9 subdivisions 3 and 4, arising out of a failure of a municipality
203.10 or authority to comply with the provisions of sections 469.174
203.11 to 469.179, or related provisions of this chapter. The
203.12 prevailing party in a suit filed under the preceding sentence is
203.13 entitled to costs, including reasonable attorney fees.
203.14 (b) The state auditor may examine and audit political
203.15 subdivisions' use of tax increment financing. Without previous
203.16 notice, the state auditor may examine or audit accounts and
203.17 records on a random basis as the auditor deems to be in the
203.18 public interest. If the state auditor finds evidence that an
203.19 authority or municipality has violated a provision of the law
203.20 for which a remedy is provided under this section, the state
203.21 auditor shall forward the relevant information to the county
203.22 attorney. The county attorney may bring an action to enforce
203.23 the provisions of sections 469.174 to 469.179 or related
203.24 provisions of this chapter, for matters referred by the state
203.25 auditor or on behalf of the county. If the county attorney
203.26 determines not to bring an action or if the county attorney has
203.27 not brought an action within 12 months after receipt of the
203.28 initial notification by the state auditor of the violation, the
203.29 county attorney shall notify the state auditor in writing.
203.30 (c) If the state auditor finds an authority is not in
203.31 compliance with sections 469.174 to 469.179 or related
203.32 provisions of law, the auditor shall notify the governing body
203.33 of the municipality that approved the tax increment financing
203.34 district of its findings. The governing body of the
203.35 municipality must respond in writing to the state auditor within
203.36 60 days after receiving the notification. Its written response
204.1 must state whether the municipality accepts, in whole or part,
204.2 the auditor's findings. If the municipality does not accept the
204.3 findings, the statement must indicate the basis for its
204.4 disagreement. The state auditor shall annually summarize the
204.5 responses it receives under this section and send the summary
204.6 and copies of the responses to the chairs of the committees of
204.7 the legislature with jurisdiction over tax increment financing.
204.8 (d) The state auditor shall notify the attorney general in
204.9 writing and provide supporting materials for a violation found
204.10 by the auditor, if the:
204.11 (1) auditor receives notification from the county attorney
204.12 under paragraph (b) or receives no notification for a 12-month
204.13 period after initially notifying the county attorney and the
204.14 state auditor confirms with the county attorney or the
204.15 municipality that no action has been brought regarding the
204.16 matter; and
204.17 (2) municipality or development authority have not
204.18 eliminated or resolved the violation to the satisfaction of the
204.19 state auditor.
204.20 The auditor shall provide the municipality and development
204.21 authority a copy of the notification sent to the attorney
204.22 general.
204.23 Sec. 6. Minnesota Statutes 1998, section 469.1771, is
204.24 amended by adding a subdivision to read:
204.25 Subd. 2b. [ACTION TO SUSPEND TIF AUTHORITY.] (a) Upon
204.26 receipt of a notification from the state auditor under
204.27 subdivision 1, paragraph (d), the attorney general shall review
204.28 the materials submitted by the auditor and any materials
204.29 submitted by the municipality and development authority. If the
204.30 attorney general finds that the municipality or development
204.31 authority violated a provision of the law enumerated in
204.32 subdivision 1 and that the violation was substantial, the
204.33 attorney general shall file a petition in the tax court to
204.34 suspend the authority of the municipality and development
204.35 authority to exercise tax increment financing powers.
204.36 (b) Before filing a petition under this subdivision, the
205.1 attorney shall attempt to resolve the matter using appropriate
205.2 alternative dispute resolution procedures, such as those under
205.3 sections 572.31 to 572.40.
205.4 (c) If the tax court finds that the municipality or
205.5 development authority failed to comply with the law and that the
205.6 noncompliance was substantial, the court shall suspend the
205.7 authority of the municipality or development to exercise tax
205.8 increment financing powers. The court shall set the period of
205.9 the suspension for a period not to exceed five years. In
205.10 determining the length of the suspension, the court may consider:
205.11 (1) the substantiality of the violation or violations;
205.12 (2) the dollar amount of the violation or violations;
205.13 (3) the sophistication of the municipality or development
205.14 authority;
205.15 (4) the extent to which the municipality or development
205.16 authority violated a clear and unambiguous requirement of the
205.17 law;
205.18 (5) whether the municipality or development authority
205.19 continued to violate the law after receiving notification from
205.20 the state auditor that it was not in compliance with the law;
205.21 (6) the extent to which the municipality or development
205.22 authority engaged in a pattern of violations; and
205.23 (7) any other factors the court determines are relevant to
205.24 whether the municipality or development authority's authority to
205.25 exercise tax increment financing powers should be suspended.
205.26 (d) For purposes of this subdivision, the exercise of tax
205.27 increment financing powers means:
205.28 (1) the authority to request certification of a new tax
205.29 increment financing district or the addition of area to an
205.30 existing tax increment financing district;
205.31 (2) the authority to issue bonds under section 469.178;
205.32 (3) the authority to amend a tax increment financing plan
205.33 to authorize new activities or expenditures.
205.34 Sec. 7. Minnesota Statutes 1998, section 469.1791,
205.35 subdivision 3, is amended to read:
205.36 Subd. 3. [PRECONDITIONS TO ESTABLISH DISTRICT.] (a) A city
206.1 may establish a special taxing district within a tax increment
206.2 financing district under this section only if the conditions
206.3 under paragraphs (b) and (c) are met or if the city elects to
206.4 exercise the authority under paragraph (d).
206.5 (b) The city has determined that:
206.6 (1) total tax increments from the district, including
206.7 unspent increments from previous years and increments
206.8 transferred under paragraph (c), will be insufficient to pay the
206.9 amounts due in a year on preexisting obligations; and
206.10 (2) this insufficiency of increments resulted from the
206.11 reduction in property tax class rates enacted in the 1997 and
206.12 1998 legislative sessions.
206.13 (c) The city has agreed to transfer any available
206.14 increments from other tax increment financing districts in the
206.15 city to pay the preexisting obligations of the district under
206.16 section 469.1763, subdivision 6. This requirement does not
206.17 apply to any available increments of a qualified housing
206.18 district, as defined in section 273.1399, subdivision
206.19 1. Notwithstanding any law to the contrary, the city may
206.20 require a development authority to transfer available increments
206.21 for any of its tax increment financing districts in the city to
206.22 make up an insufficiency in another district in the city,
206.23 regardless of whether the district was established by the
206.24 development authority or another development authority.
206.25 Notwithstanding any law to the contrary, increments transferred
206.26 under this authority must be spent to pay preexisting
206.27 obligations. "Development authority" for this purpose means any
206.28 authority as defined in section 469.174, subdivision 2.
206.29 (d) If a tax increment financing district does not qualify
206.30 under paragraphs (b) and (c), the governing body may elect to
206.31 establish a special taxing district under this section. If the
206.32 city elects to exercise this authority, increments from the tax
206.33 increment financing district and the proceeds of the tax imposed
206.34 under this section may only be used to pay preexisting
206.35 obligations and reasonable administrative expenses of the
206.36 authority for the tax increment financing district. The tax
207.1 increment financing district must be decertified when all
207.2 preexisting obligations have been paid.
207.3 Sec. 8. Minnesota Statutes 1998, section 469.1813,
207.4 subdivision 1, is amended to read:
207.5 Subdivision 1. [AUTHORITY.] The governing body of a
207.6 political subdivision may grant an abatement of the taxes
207.7 imposed by the political subdivision on a parcel of property, or
207.8 defer the payments of the taxes and abate the interest and
207.9 penalty that otherwise would apply, if:
207.10 (a) it expects the benefits to the political subdivision of
207.11 the proposed abatement agreement to at least equal the costs to
207.12 the political subdivision of the proposed agreement; and
207.13 (b) it finds that doing so is in the public interest
207.14 because it will:
207.15 (1) increase or preserve tax base;
207.16 (2) provide employment opportunities in the political
207.17 subdivision;
207.18 (3) provide or help acquire or construct public facilities;
207.19 (4) help redevelop or renew blighted areas; or
207.20 (5) help provide access to services for residents of the
207.21 political subdivision; or
207.22 (6) finance or provide public infrastructure.
207.23 Sec. 9. Minnesota Statutes 1998, section 469.1813, is
207.24 amended by adding a subdivision to read:
207.25 Subd. 1a. [USE OF TERM.] As used in this section and
207.26 sections 469.1814 and 469.1815, "abatement" includes a deferral
207.27 of taxes with abatement of interest and penalties unless the
207.28 context indicates otherwise.
207.29 Sec. 10. Minnesota Statutes 1998, section 469.1813,
207.30 subdivision 2, is amended to read:
207.31 Subd. 2. [ABATEMENT RESOLUTION.] (a) The governing body of
207.32 a political subdivision may grant an abatement only by adopting
207.33 an abatement resolution, specifying the terms of the abatement.
207.34 In the case of a town, the board of supervisors may approve the
207.35 abatement resolution. The resolution must also include a
207.36 specific statement as to the nature and extent of the public
208.1 benefits which the governing body expects to result from the
208.2 agreement. The resolution may provide that the political
208.3 subdivision will retain or transfer to another political
208.4 subdivision the abatement to pay for all or part of the cost of
208.5 acquisition or improvement of public infrastructure, whether or
208.6 not located on or adjacent to the parcel for which the tax is
208.7 abated. The abatement may reduce all or part of the property
208.8 tax levied by amount for the political subdivision on the
208.9 parcel. A political subdivision's maximum annual amount for a
208.10 parcel equals its total local tax rate multiplied by the total
208.11 net tax capacity of the parcel.
208.12 (b) The political subdivision may limit the abatement:
208.13 (1) to a specific dollar amount per year or in total;
208.14 (2) to the increase in property taxes resulting from
208.15 improvement of the property;
208.16 (3) to the increases in property taxes resulting from
208.17 increases in the market value or tax capacity of the
208.18 property; or
208.19 (4) in any other manner the governing body of the
208.20 subdivision determines is appropriate; or
208.21 (5) to the interest and penalty that would otherwise be due
208.22 on taxes that are deferred.
208.23 (c) The political subdivision may not abate tax
208.24 attributable to the value of the land or the areawide tax under
208.25 chapter 276A or 473F, except as provided in this subdivision.
208.26 Sec. 11. Minnesota Statutes 1998, section 469.1813, is
208.27 amended by adding a subdivision to read:
208.28 Subd. 6a. [DEFERMENT PAYMENT SCHEDULE.] When the tax is
208.29 deferred and the interest and penalty abated, the political
208.30 subdivision must set a schedule for repayments. The deferred
208.31 payment must be included with the current taxes due and payable
208.32 in the years the deferred payments are due and payable and must
208.33 be levied accordingly.
208.34 Sec. 12. Minnesota Statutes 1998, section 469.1813,
208.35 subdivision 3, is amended to read:
208.36 Subd. 3. [SCHOOL DISTRICT ABATEMENT PROCEDURE ABATEMENTS.]
209.1 Notwithstanding the amounts in subdivision 2, a school district
209.2 that grants an abatement under this section must limit the
209.3 abatement for any property to not more than an amount equal to
209.4 the product of: (1) the property's net tax capacity, and (2)
209.5 the difference between the district's total tax rate for that
209.6 year and one-half of the general education tax rate for that
209.7 year. An abatement granted under this section is not an
209.8 abatement for purposes of state aid or local levy under sections
209.9 127A.40 to 127A.51.
209.10 Sec. 13. Minnesota Statutes 1998, section 469.1813,
209.11 subdivision 6, is amended to read:
209.12 Subd. 6. [DURATION LIMIT.] (a) A political subdivision
209.13 other than a school district may grant an abatement for a period
209.14 no longer than ten years. The subdivision may specify in the
209.15 abatement resolution a shorter duration. If the resolution does
209.16 not specify a period of time, the abatement is for eight years.
209.17 If an abatement has been granted to a parcel of property and the
209.18 period of the abatement has expired, the political subdivision
209.19 that granted the abatement may not grant another abatement for
209.20 eight years after the expiration of the first abatement. This
209.21 prohibition does not apply to improvements added after and not
209.22 subject to the first abatement.
209.23 (b) A school district may grant an abatement for only one
209.24 year at a time. Once a school district has authorized an
209.25 abatement for a property, it may reauthorize the abatement in
209.26 any subsequent year for the next seven years, or nine years if
209.27 provided in the original abatement agreement. This prohibition
209.28 does not apply to improvements added after and not subject to
209.29 the original abatement agreement.
209.30 Sec. 14. Minnesota Statutes 1998, section 469.1813, is
209.31 amended by adding a subdivision to read:
209.32 Subd. 9. [CONSENT OF PROPERTY OWNER NOT REQUIRED.] A
209.33 political subdivision may abate the taxes on a parcel under
209.34 sections 469.1812 to 469.1815 without obtaining the consent of
209.35 the property owner.
209.36 Sec. 15. Minnesota Statutes 1998, section 469.1815,
210.1 subdivision 2, is amended to read:
210.2 Subd. 2. [PROPERTY TAXES; ABATEMENT PAYMENT.] The total
210.3 property taxes shall be levied on the property and shall be due
210.4 and payable to the county at the times provided under section
210.5 279.01. The political subdivision will pay the abatement to the
210.6 property owner, lessee, or a representative of the
210.7 bondholders or will retain the abatement to pay public
210.8 infrastructure costs, as provided by the abatement resolution.
210.9 Sec. 16. Laws 1997, chapter 231, article 1, section 19,
210.10 subdivision 1, is amended to read:
210.11 Subdivision 1. [TIF GRANTS.] (a) The commissioner of
210.12 revenue shall pay grants to municipalities for deficits in tax
210.13 increment financing districts caused by the changes in class
210.14 rates under this act. Municipalities must submit applications
210.15 for the grants in a form prescribed by the commissioner by no
210.16 later than March August 1 for grants payable during the calendar
210.17 year. The maximum grant equals the lesser of:
210.18 (1) for taxes payable in the year before the grant is paid,
210.19 the reduction in the tax increment financing district's revenues
210.20 derived from increment resulting from the class rate changes in
210.21 this article, Laws 1998, chapter 389, article 2, and those
210.22 enacted in the 1999 regular legislative session; or
210.23 (2) the municipality's total tax increments, including
210.24 unspent increments from previous years, less the amount due
210.25 during the calendar year to pay (i) bonds issued and sold before
210.26 the day following final enactment of this act and (ii) binding
210.27 contracts entered into before the day following final enactment
210.28 of this act.
210.29 (b) The commissioner of revenue may require applicants for
210.30 grants or pooling authority under this section to provide any
210.31 information the commissioner deems appropriate. The
210.32 commissioner shall calculate the amount under paragraph (a),
210.33 clause (2), based on the reports for the tax increment financing
210.34 district or districts filed with the state auditor on or before
210.35 July August 1 of the year before the year in which the grant is
210.36 to be paid.
211.1 (c) This subdivision applies only to deficits in tax
211.2 increment financing districts for which:
211.3 (1) the request for certification was made before the
211.4 enactment date of this act; and
211.5 (2) all timely reports have been filed with the state
211.6 auditor, as required by Minnesota Statutes, section 469.175.
211.7 (d) The commissioner shall pay the grants under this
211.8 subdivision by December 26 of the year.
211.9 (e) $2,000,000 is appropriated to the commissioner of
211.10 revenue to make grants under this section. This appropriation
211.11 is available until expended or this section expires under
211.12 subdivision 3, whichever is earlier. If the amount of grant
211.13 entitlements for a year exceed the appropriation, the
211.14 commissioner shall reduce each grant proportionately so the
211.15 total equals the amount available.
211.16 Sec. 17. Laws 1997, chapter 231, article 1, section 19,
211.17 subdivision 3, is amended to read:
211.18 Subd. 3. [EXPIRATION.] This section expires on January 1,
211.19 2001 2002.
211.20 Sec. 18. [CITY OF ONAMIA; USE OF TAX INCREMENT FINANCING.]
211.21 Subdivision 1. [APPLICATION OF TIME LIMIT.] For tax
211.22 increment financing district No. 1-1, established April 14,
211.23 1993, by the city of Onamia, Minnesota Statutes, section
211.24 469.1763, subdivision 3, applies to the qualified portion of the
211.25 district by permitting a period of ten years for commencement of
211.26 activities within the district. As used in this section,
211.27 "qualified portion of the district" means only that portion of
211.28 the district consisting of three parcels fronting on U.S. 169.
211.29 Subd. 2. [EFFECTIVE DATE.] This section is effective upon
211.30 approval by the governing body of the city of Onamia and
211.31 compliance with Minnesota Statutes, section 645.021, subdivision
211.32 3.
211.33 Sec. 19. [ST. CLOUD HOUSING AND REDEVELOPMENT AUTHORITY.]
211.34 Subdivision 1. [TAX INCREMENT POOLING.] Notwithstanding
211.35 the provisions of Minnesota Statutes, section 469.1763,
211.36 subdivision 2, and the provisions of the tax increment financing
212.1 act in effect for districts established by the St. Cloud housing
212.2 and redevelopment authority for which the request for
212.3 certification was made after August 1, 1979, and before June 30,
212.4 1982, revenue derived from tax increments paid by properties in
212.5 the districts may be expended through a development fund or
212.6 otherwise within other tax increment districts established by
212.7 the authority to finance the redevelopment of commercial
212.8 properties outside of tax increment financing districts which
212.9 were destroyed or impacted in a natural gas explosion on
212.10 December 11, 1998.
212.11 Subd. 2. [EFFECTIVE DATE.] This section is effective the
212.12 day after compliance with Minnesota Statutes, section 645.021,
212.13 subdivision 3.
212.14 Sec. 20. [CITY OF ST. PAUL.]
212.15 Subdivision 1. [DELAY OF DEEMED COMMENCEMENT OF TAX
212.16 INCREMENT FINANCING DISTRICT.] Notwithstanding Minnesota
212.17 Statutes, section 469.176, or any other law to the contrary, the
212.18 duration limit of the Williams Hill tax increment district in
212.19 the city of St. Paul is determined as if the date of receipt of
212.20 the first tax increment by the authority occurs when the
212.21 aggregate of all tax increments received from the district
212.22 reaches $2,000. In no case may the duration limit of the
212.23 district be extended by more than two years.
212.24 Subd. 2. [EFFECTIVE DATE.] This section is effective upon
212.25 approval by and compliance with Minnesota Statutes, sections
212.26 469.1782, subdivision 2, and 645.021, subdivision 3, by the
212.27 governing body of the city of St. Paul.
212.28 Sec. 21. [CITY OF JACKSON; TAX INCREMENT FINANCING
212.29 DISTRICT.]
212.30 Subdivision 1. [DISTRICT EXTENSION.] (a) Notwithstanding
212.31 the provisions of Minnesota Statutes, section 469.176,
212.32 subdivision 1c, full tax increments from U.S. 71/I-90 tax
212.33 increment financing district in the city of Jackson must be paid
212.34 to and may be retained by the city of Jackson through taxes
212.35 payable in 2002. The amount to be retained by the city is
212.36 limited to $170,000. Any increments received during the
213.1 extension in excess of $170,000 must be returned as excess
213.2 increments under Minnesota Statutes, section 469.176,
213.3 subdivision 2.
213.4 Subd. 2. [EFFECTIVE DATE.] This section is effective the
213.5 day after compliance with Minnesota Statutes, sections 469.1782,
213.6 subdivision 2, and 645.021, subdivision 3.
213.7 Sec. 22. [CITY OF MINNEOTA; TAX INCREMENT FINANCING.]
213.8 Subdivision 1. [ACTIONS RATIFIED.] The expenditure of tax
213.9 increments on administrative expenses and public utility or
213.10 other improvements by the city of Minneota for its tax increment
213.11 financing district, adopted by city resolution 4-15-85A, are
213.12 ratified and deemed to be authorized by the tax increment
213.13 financing plan for the district.
213.14 Subd. 2. [EFFECTIVE DATE.] This section is effective upon
213.15 compliance by the governing body of the city of Minneota with
213.16 Minnesota Statutes, section 645.021, subdivision 3.
213.17 Sec. 23. [CITY OF FRIDLEY, TAX INCREMENT FINANCING
213.18 DISTRICT.]
213.19 Subdivision 1. [EXTENSION OF TIME.] (a) Notwithstanding
213.20 the provisions of Minnesota Statutes, section 469.176,
213.21 subdivision 1b, upon approval of the governing body of the city
213.22 of Fridley, the Fridley housing and redevelopment authority may,
213.23 by resolution, extend the duration of tax increment financing
213.24 district No. 6 located in the city of Fridley. The housing and
213.25 redevelopment authority may not extend the duration beyond
213.26 December 31, 2025.
213.27 (b) The provisions of Minnesota Statutes, sections
213.28 273.1399, subdivision 8, and 469.1782, subdivision 1, apply to
213.29 this district if extended, except that the maximum state aid
213.30 reduction for a year may not exceed the least of the following
213.31 amounts:
213.32 (1) the amount under Minnesota Statutes, section 469.1782,
213.33 subdivision 1;
213.34 (2) $200,000, plus one-half of (the amount under Minnesota
213.35 Statutes, section 469.1782, subdivision 1, minus $200,000);
213.36 (3) 2.5 percent of the net tax capacity of the city; or
214.1 (4) five percent of the prior year's tax increment from the
214.2 district.
214.3 (c) Notwithstanding any law to the contrary, effective upon
214.4 approval of this section, no increments may be spent on
214.5 activities located outside of the area of the district, other
214.6 than for administrative expenses, sanitary sewer, and the costs
214.7 of trunk highway No. 65 and other road improvements that are a
214.8 direct result of development occurring within the area of the
214.9 district.
214.10 (d) In the taxes payable year that the district would be
214.11 terminated under general law, the original net tax capacity of
214.12 tax increment financing district No. 6 must be increased by the
214.13 net tax capacity of 200,000 square feet of building
214.14 improvements, exclusive of parking structures.
214.15 Subd. 2. [EFFECTIVE DATE.] This section is effective upon
214.16 compliance with the requirements of Minnesota Statutes, sections
214.17 469.1782, subdivision 2, and 645.021.
214.18 Sec. 24. [CITY OF BROOKLYN CENTER; TAX INCREMENT FINANCING
214.19 DISTRICT.]
214.20 Subdivision 1. [CHANGE OF FISCAL DISPARITIES
214.21 ELECTION.] Notwithstanding Minnesota Statutes, section 469.177,
214.22 subdivision 3, paragraph (c), the governing body of the city of
214.23 Brooklyn Center may change its election of the computation of
214.24 tax increment for tax increment district No. 4 under Minnesota
214.25 Statutes, section 469.177, subdivision 3, from the method of
214.26 computation in paragraph (b) to the method in paragraph (a) of
214.27 that provision.
214.28 Subd. 2. [EFFECTIVE DATE.] This section is effective upon
214.29 approval by the governing body of the city of Brooklyn Center
214.30 and compliance with Minnesota Statutes, section 645.021,
214.31 subdivision 3.
214.32 Sec. 25. [CITY OF DAWSON; TAX INCREMENT DISTRICT.]
214.33 Subdivision 1. [DISTRICT EXTENDED.] Notwithstanding
214.34 Minnesota Statutes, section 469.176, subdivision 1b, the Dawson
214.35 economic development authority may collect tax increments from
214.36 tax increment financing district No. 7 for a period of 18 years
215.1 after receipt by the authority of the first increment.
215.2 Subd. 2. [EFFECTIVE DATE; APPLICABILITY.] Subdivision 1 is
215.3 effective upon compliance with Minnesota Statutes, sections
215.4 469.1782, subdivision 2, and 645.021, subdivision 3.
215.5 Sec. 26. [MINNEAPOLIS; TAX INCREMENT FINANCING.]
215.6 Subdivision 1. [SOCIAL AND RECREATIONAL FACILITIES.] The
215.7 provisions of section 2 do not apply to the Mill Ruins Park and
215.8 Milwaukee Road Depot tax increment financing districts and to a
215.9 district designated in the future that contains the former
215.10 federal reserve bank building in the city of Minneapolis.
215.11 Subd. 2. [EFFECTIVE DATE.] This section is effective upon
215.12 compliance by the city of Minneapolis with the requirements of
215.13 Minnesota Statutes 1998, section 645.021, subdivision 3.
215.14 Sec. 27. [APPROPRIATION; TIF GRANTS.]
215.15 $4,000,000 is appropriated to the commissioner of revenue
215.16 for purposes of grants under Laws 1997, chapter 231, article 1,
215.17 section 19, to municipalities to offset deficits in tax
215.18 increment financing districts.
215.19 Sec. 28. [REPEALER.]
215.20 Laws 1997, chapter 231, article 1, section 19, subdivision
215.21 2, is repealed.
215.22 Sec. 29. [EFFECTIVE DATE.]
215.23 Section 1 is effective for requests for certification of a
215.24 new district or for the addition of geographic area to a
215.25 district made after June 30, 1999.
215.26 Section 2 is effective for all tax increment financing
215.27 districts, regardless of when the request for certification was
215.28 made, but does not apply to (1) expenditures made before January
215.29 1, 2000; (2) expenditures made under a binding contract entered
215.30 before January 1, 2000; or (3) expenditures made under a binding
215.31 contract entered pursuant to a letter of intent with the
215.32 developer or contractor if the letter of intent was entered
215.33 before January 1, 2000.
215.34 Section 3 is effective for all districts for which the
215.35 request for certification was made before June 2, 1997.
215.36 Section 4 is effective the day following final enactment
216.1 and applies to districts for which the request for certification
216.2 was made after July 31, 1979, and before July 1, 1982.
216.3 Sections 5 and 6 apply to all districts for which the
216.4 request for certification was made after August 1, 1979, but is
216.5 limited to final letters of noncompliance issued by the state
216.6 auditor after December 31, 1999.
216.7 Sections 8 to 17, and 28 are effective the day following
216.8 final enactment.
216.9 ARTICLE 11
216.10 STATE FUNDING OF DISTRICT COURTS
216.11 TRANSFER OF FINES, FEES, AND OTHER MONEY TO STATE
216.12 Section 1. Minnesota Statutes 1998, section 97A.065,
216.13 subdivision 2, is amended to read:
216.14 Subd. 2. [FINES AND FORFEITED BAIL.] (a) Fines and
216.15 forfeited bail collected from prosecutions of violations of:
216.16 the game and fish laws; sections 84.091 to 84.15; sections 84.81
216.17 to 84.91; section 169.121, when the violation involved an
216.18 off-road recreational vehicle as defined in section 169.01,
216.19 subdivision 86; chapter 348; and any other law relating to wild
216.20 animals or aquatic vegetation, must be paid to the treasurer of
216.21 the county where the violation is prosecuted. The county
216.22 treasurer shall submit one-half of the receipts to the
216.23 commissioner and credit the balance to the county general
216.24 revenue fund except as provided in paragraphs (b), (c), and
216.25 (d). In a county in a judicial district under section 480.181,
216.26 subdivision 1, paragraph (b), as added in 1999 S.F. No. 2221,
216.27 article 7, section 26, the share that would otherwise go to the
216.28 county under this paragraph must be submitted to the state
216.29 treasurer for deposit in the state treasury and credited to the
216.30 general fund.
216.31 (b) The commissioner must reimburse a county, from the game
216.32 and fish fund, for the cost of keeping prisoners prosecuted for
216.33 violations under this section if the county board, by
216.34 resolution, directs: (1) the county treasurer to submit all
216.35 fines and forfeited bail to the commissioner; and (2) the county
216.36 auditor to certify and submit monthly itemized statements to the
217.1 commissioner.
217.2 (c) The county treasurer shall submit one-half of the
217.3 receipts collected under paragraph (a) from prosecutions of
217.4 violations of sections 84.81 to 84.91, and 169.121, except
217.5 receipts that are surcharges imposed under section 357.021,
217.6 subdivision 6, to the state treasurer and credit the balance to
217.7 the county general fund. The state treasurer shall credit these
217.8 receipts to the snowmobile trails and enforcement account in the
217.9 natural resources fund.
217.10 (d) The county treasurer shall indicate the amount of the
217.11 receipts that are surcharges imposed under section 357.021,
217.12 subdivision 6, and shall submit all of those receipts to the
217.13 state treasurer.
217.14 Sec. 2. Minnesota Statutes 1998, section 273.1398,
217.15 subdivision 2, is amended to read:
217.16 Subd. 2. [HOMESTEAD AND AGRICULTURAL CREDIT AID.]
217.17 Homestead and agricultural credit aid for each unique taxing
217.18 jurisdiction equals the product of (1) the homestead and
217.19 agricultural credit aid base, and (2) the growth adjustment
217.20 factor, plus the net tax capacity adjustment and the fiscal
217.21 disparity adjustment. For aid payable in 2000, each county
217.22 shall have its homestead and agricultural credit aid permanently
217.23 reduced by an amount equal to one-third of the additional amount
217.24 received by the county under section 477A.03, subdivision 2,
217.25 paragraph (c), clause (ii).
217.26 Sec. 3. Minnesota Statutes 1998, section 273.1398, is
217.27 amended by adding a subdivision to read:
217.28 Subd. 4a. [AID OFFSET FOR COURT COSTS.] (a) By July 15,
217.29 1999, the supreme court shall determine and certify to the
217.30 commissioner of revenue for each county, other than counties
217.31 located in the eighth judicial district, the county's share of
217.32 the costs assumed under 1999 S.F. No. 2221, article 7, during
217.33 the fiscal year beginning July 1, 2000, less an amount equal to
217.34 the county's share of transferred fines collected by the
217.35 district courts in the county during calendar year 1998.
217.36 (b) Payments to a county under subdivision 2 or section
218.1 273.166 for calendar year 2000 must be permanently reduced by an
218.2 amount equal to 75 percent of the net cost to the state for
218.3 assumption of district court costs as certified in paragraph (a).
218.4 (c) Payments to a county under subdivision 2 or section
218.5 273.166 for calendar year 2001 must be permanently reduced by an
218.6 amount equal to 25 percent of the net cost to the state for
218.7 assumption of district court costs as certified in paragraph (a).
218.8 Sec. 4. Minnesota Statutes 1998, section 299D.03,
218.9 subdivision 5, is amended to read:
218.10 Subd. 5. [FINES AND FORFEITED BAIL MONEY.] (a) All fines
218.11 and forfeited bail money, from traffic and motor vehicle law
218.12 violations, collected from persons apprehended or arrested by
218.13 officers of the state patrol, shall be paid by the person or
218.14 officer collecting the fines, forfeited bail money or
218.15 installments thereof, on or before the tenth day after the last
218.16 day of the month in which these moneys were collected, to the
218.17 county treasurer of the county where the violation occurred.
218.18 Three-eighths of these receipts shall be credited to the general
218.19 revenue fund of the county, except that in a county in a
218.20 judicial district under section 480.181, subdivision 1,
218.21 paragraph (b), as added in 1999 S.F. No. 2221, article 7,
218.22 section 26, this three-eighths share must be transmitted to the
218.23 state treasurer for deposit in the state treasury and credited
218.24 to the general fund. The other five-eighths of these receipts
218.25 shall be transmitted by that officer to the state treasurer and
218.26 shall be credited as follows:
218.27 (1) In the fiscal year ending June 30, 1991, the first
218.28 $275,000 in money received by the state treasurer after June 4,
218.29 1991, must be credited to the transportation services fund, and
218.30 the remainder in the fiscal year credited to the trunk highway
218.31 fund.
218.32 (2) In fiscal year 1992, the first $215,000 in money
218.33 received by the state treasurer in the fiscal year must be
218.34 credited to the transportation services fund, and the remainder
218.35 credited to the trunk highway fund.
218.36 (3) In fiscal years 1993 and subsequent years, the entire
219.1 amount received by the state treasurer must be credited to the
219.2 trunk highway fund. If, however, the violation occurs within a
219.3 municipality and the city attorney prosecutes the offense, and a
219.4 plea of not guilty is entered, one-third of the receipts shall
219.5 be credited to the general revenue fund of the county, one-third
219.6 of the receipts shall be paid to the municipality prosecuting
219.7 the offense, and one-third shall be transmitted to the state
219.8 treasurer as provided in this subdivision. All costs of
219.9 participation in a nationwide police communication system
219.10 chargeable to the state of Minnesota shall be paid from
219.11 appropriations for that purpose.
219.12 (b) Notwithstanding any other provisions of law, all fines
219.13 and forfeited bail money from violations of statutes governing
219.14 the maximum weight of motor vehicles, collected from persons
219.15 apprehended or arrested by employees of the state of Minnesota,
219.16 by means of stationary or portable scales operated by these
219.17 employees, shall be paid by the person or officer collecting the
219.18 fines or forfeited bail money, on or before the tenth day after
219.19 the last day of the month in which the collections were made, to
219.20 the county treasurer of the county where the violation
219.21 occurred. Five-eighths of these receipts shall be transmitted
219.22 by that officer to the state treasurer and shall be credited to
219.23 the highway user tax distribution fund. Three-eighths of these
219.24 receipts shall be credited to the general revenue fund of the
219.25 county, except that in a county in a judicial district under
219.26 section 480.181, subdivision 1, paragraph (b), as added in 1999
219.27 S.F. No. 2221, article 7, section 26, this three-eighths share
219.28 must be transmitted to the state treasurer for deposit in the
219.29 state treasury and credited to the general fund.
219.30 Sec. 5. Minnesota Statutes 1998, section 357.021,
219.31 subdivision 1a, is amended to read:
219.32 Subd. 1a. [TRANSMITTAL OF FEES TO STATE TREASURER.] (a)
219.33 Every person, including the state of Minnesota and all bodies
219.34 politic and corporate, who shall transact any business in the
219.35 district court, shall pay to the court administrator of said
219.36 court the sundry fees prescribed in subdivision 2. Except as
220.1 provided in paragraph (d), the court administrator shall
220.2 transmit the fees monthly to the state treasurer for deposit in
220.3 the state treasury and credit to the general fund.
220.4 (b) In a county which has a screener-collector position,
220.5 fees paid by a county pursuant to this subdivision shall be
220.6 transmitted monthly to the county treasurer, who shall apply the
220.7 fees first to reimburse the county for the amount of the salary
220.8 paid for the screener-collector position. The balance of the
220.9 fees collected shall then be forwarded to the state treasurer
220.10 for deposit in the state treasury and credited to the general
220.11 fund. In a county in the eighth a judicial district under
220.12 section 480.181, subdivision 1, paragraph (b), as added in 1999
220.13 S.F. No. 2221, article 7, section 26, which has a
220.14 screener-collector position, the fees paid by a county shall be
220.15 transmitted monthly to the state treasurer for deposit in the
220.16 state treasury and credited to the general fund. A
220.17 screener-collector position for purposes of this paragraph is an
220.18 employee whose function is to increase the collection of fines
220.19 and to review the incomes of potential clients of the public
220.20 defender, in order to verify eligibility for that service.
220.21 (c) No fee is required under this section from the public
220.22 authority or the party the public authority represents in an
220.23 action for:
220.24 (1) child support enforcement or modification, medical
220.25 assistance enforcement, or establishment of parentage in the
220.26 district court, or child or medical support enforcement
220.27 conducted by an administrative law judge in an administrative
220.28 hearing under section 518.5511;
220.29 (2) civil commitment under chapter 253B;
220.30 (3) the appointment of a public conservator or public
220.31 guardian or any other action under chapters 252A and 525;
220.32 (4) wrongfully obtaining public assistance under section
220.33 256.98 or 256D.07, or recovery of overpayments of public
220.34 assistance;
220.35 (5) court relief under chapter 260;
220.36 (6) forfeiture of property under sections 169.1217 and
221.1 609.531 to 609.5317;
221.2 (7) recovery of amounts issued by political subdivisions or
221.3 public institutions under sections 246.52, 252.27, 256.045,
221.4 256.25, 256.87, 256B.042, 256B.14, 256B.15, 256B.37, and
221.5 260.251, or other sections referring to other forms of public
221.6 assistance;
221.7 (8) restitution under section 611A.04; or
221.8 (9) actions seeking monetary relief in favor of the state
221.9 pursuant to section 16D.14, subdivision 5.
221.10 (d) The fees collected for child support modifications
221.11 under subdivision 2, clause (13), must be transmitted to the
221.12 county treasurer for deposit in the county general fund. The
221.13 fees must be used by the county to pay for child support
221.14 enforcement efforts by county attorneys.
221.15 Sec. 6. Minnesota Statutes 1998, section 477A.03,
221.16 subdivision 2, is amended to read:
221.17 Subd. 2. [ANNUAL APPROPRIATION.] (a) A sum sufficient to
221.18 discharge the duties imposed by sections 477A.011 to 477A.014 is
221.19 annually appropriated from the general fund to the commissioner
221.20 of revenue.
221.21 (b) Aid payments to counties under section 477A.0121 are
221.22 limited to $20,265,000 in 1996. Aid payments to counties under
221.23 section 477A.0121 are limited to $27,571,625 in 1997. For aid
221.24 payable in 1998 and thereafter, the total aids paid under
221.25 section 477A.0121 are the amounts certified to be paid in the
221.26 previous year, adjusted for inflation as provided under
221.27 subdivision 3.
221.28 (c)(i) For aids payable in 1998 and thereafter, the total
221.29 aids paid to counties under section 477A.0122 are the amounts
221.30 certified to be paid in the previous year, adjusted for
221.31 inflation as provided under subdivision 3.
221.32 (ii) Aid payments to counties under section 477A.0122 in
221.33 2000 are further increased by an
221.34 additional $30,000,000 $20,000,000 in 2000.
221.35 (d) Aid payments to cities in 1999 under section 477A.013,
221.36 subdivision 9, are limited to $380,565,489. For aids payable in
222.1 2000 and 2001, the total aids paid under section 477A.013,
222.2 subdivision 9, are the amounts certified to be paid in the
222.3 previous year, adjusted for inflation as provided under
222.4 subdivision 3. For aids payable in 2002, the total aids paid
222.5 under section 477A.013, subdivision 9, are the amounts certified
222.6 to be paid in the previous year, adjusted for inflation as
222.7 provided under subdivision 3, and increased by the amount
222.8 certified to be paid in 2001 under section 477A.06. For aids
222.9 payable in 2003 and thereafter, the total aids paid under
222.10 section 477A.013, subdivision 9, are the amounts certified to be
222.11 paid in the previous year, adjusted for inflation as provided
222.12 under subdivision 3. The additional amount authorized under
222.13 subdivision 4 is not included when calculating the appropriation
222.14 limits under this paragraph.
222.15 Sec. 7. Minnesota Statutes 1998, section 485.018,
222.16 subdivision 5, is amended to read:
222.17 Subd. 5. [COLLECTION OF FEES.] The court administrator of
222.18 district court shall charge and collect all fees as prescribed
222.19 by law and all such fees collected by the court administrator as
222.20 court administrator of district court shall be paid to the
222.21 county treasurer. Except for those portions of forfeited bail
222.22 paid to victims pursuant to existing law, the county treasurer
222.23 shall forward all revenue from fees and forfeited bail collected
222.24 under chapters 357, 487, and 574 to the state treasurer for
222.25 deposit in the state treasury and credit to the general fund,
222.26 unless otherwise provided in chapter 611A or other law, in the
222.27 manner and at the times prescribed by the state treasurer, but
222.28 not less often than once each month. If the defendant or
222.29 probationer is located after forfeited bail proceeds have been
222.30 forwarded to the state treasurer, the state treasurer shall
222.31 reimburse the county, on request, for actual costs expended for
222.32 extradition, transportation, or other costs necessary to return
222.33 the defendant or probationer to the jurisdiction where the bail
222.34 was posted, in an amount not more than the amount of forfeited
222.35 bail. All other money must be deposited in the county general
222.36 fund unless otherwise provided by law. The court administrator
223.1 of district court shall not retain any additional compensation,
223.2 per diem or other emolument for services as court administrator
223.3 of district court, but may receive and retain mileage and
223.4 expense allowances as prescribed by law.
223.5 Sec. 8. Minnesota Statutes 1998, section 487.02,
223.6 subdivision 2, is amended to read:
223.7 Subd. 2. Except as provided in this subdivision, the
223.8 county board shall levy taxes annually against the taxable
223.9 property within the county as necessary for the establishment,
223.10 operation and maintenance of the county court or courts within
223.11 the county. Any county in a judicial district under section
223.12 480.181, subdivision 1, paragraph (b), as added by 1999 S.F. No.
223.13 2221, article 7, section 26, is prohibited from levying property
223.14 taxes for these purposes, except for any amounts necessary to
223.15 pay the costs incurred in the first six months of calendar year
223.16 2000 with respect to counties in the fifth, seventh, and ninth
223.17 judicial districts.
223.18 Sec. 9. Minnesota Statutes 1998, section 487.32,
223.19 subdivision 3, is amended to read:
223.20 Subd. 3. A judge of a county court may order any sums
223.21 forfeited to be reinstated and the county state treasurer shall
223.22 then refund accordingly. The county state treasurer shall
223.23 reimburse the court administrator if the court administrator
223.24 refunds the deposit upon a judge's order and obtains a receipt
223.25 to be used as a voucher.
223.26 Sec. 10. Minnesota Statutes 1998, section 487.33,
223.27 subdivision 5, is amended to read:
223.28 Subd. 5. [ALLOCATION.] The court administrator shall
223.29 provide the county treasurer with the name of the municipality
223.30 or other subdivision of government where the offense was
223.31 committed which employed or provided by contract the arresting
223.32 or apprehending officer and the name of the municipality or
223.33 other subdivision of government which employed the prosecuting
223.34 attorney or otherwise provided for prosecution of the offense
223.35 for each fine or penalty and the total amount of fines or
223.36 penalties collected for each municipality or other subdivision
224.1 of government. On or before the last day of each month, the
224.2 county treasurer shall pay over to the treasurer of each
224.3 municipality or subdivision of government within the county all
224.4 fines or penalties for parking violations for which complaints
224.5 and warrants have not been issued and one-third of all fines or
224.6 penalties collected during the previous month for offenses
224.7 committed within the municipality or subdivision of government
224.8 from persons arrested or issued citations by officers employed
224.9 by the municipality or subdivision or provided by the
224.10 municipality or subdivision by contract. An additional
224.11 one-third of all fines or penalties shall be paid to the
224.12 municipality or subdivision of government providing prosecution
224.13 of offenses of the type for which the fine or penalty is
224.14 collected occurring within the municipality or subdivision,
224.15 imposed for violations of state statute or of an ordinance,
224.16 charter provision, rule or regulation of a city whether or not a
224.17 guilty plea is entered or bail is forfeited. Except as provided
224.18 in section 299D.03, subdivision 5, or as otherwise provided by
224.19 law, all other fines and forfeitures and all fees and statutory
224.20 court costs collected by the court administrator shall be paid
224.21 to the county treasurer of the county in which the funds were
224.22 collected who shall dispense them as provided by law. In a
224.23 county in a judicial district under section 480.181, subdivision
224.24 1, paragraph (b), as added in 1999 S.F. No. 2221, article 7,
224.25 section 26, all other fines, forfeitures, fees, and statutory
224.26 court costs must be paid to the state treasurer for deposit in
224.27 the state treasury and credited to the general fund.
224.28 Sec. 11. Minnesota Statutes 1998, section 574.34,
224.29 subdivision 1, is amended to read:
224.30 Subdivision 1. [GENERAL.] Fines and forfeitures not
224.31 specially granted or appropriated by law shall be paid into the
224.32 treasury of the county where they are incurred, except in a
224.33 county in a judicial district under section 480.181, subdivision
224.34 1, paragraph (b), as added in 1999 S.F. No. 2221, article 7,
224.35 section 26, the fines and forfeitures must be deposited in the
224.36 state treasury and credited to the general fund.
225.1 Sec. 12. [APPROPRIATION.]
225.2 $18,731,000 is appropriated for fiscal year 2001 from the
225.3 general fund to the district courts for purposes of funding the
225.4 district court expenses under this article.
225.5 Sec. 13. [EFFECTIVE DATES; CONTINGENCY.]
225.6 (a) Sections 2 and 6 are effective for aids payable in
225.7 2000. The other provisions of this article providing for the
225.8 transfer of fees and fines to the state are effective January 1,
225.9 2000, with respect to counties in the eighth judicial district,
225.10 and July 1, 2000, with respect to counties in the fifth,
225.11 seventh, and ninth judicial districts.
225.12 (b) Notwithstanding paragraph (a), this article does not
225.13 take effect unless the state assumes the district court costs
225.14 under 1999 S.F. No. 2221, article 7.
225.15 ARTICLE 12
225.16 BUSINESS SUBSIDIES
225.17 Section 1. [116J.993] [DEFINITIONS.]
225.18 Subdivision 1. [SCOPE.] For the purposes of sections
225.19 116J.993 to 116J.995, the terms defined in this section have the
225.20 meanings given them.
225.21 Subd. 2. [BENEFIT DATE.] "Benefit date" means the date
225.22 that the recipient receives the business subsidy. If the
225.23 business subsidy involves the purchase, lease, or donation of
225.24 physical equipment, then the benefit date begins when the
225.25 recipient puts the equipment into service. If the business
225.26 subsidy is for improvements to property, then the benefit date
225.27 refers to the earliest date of either:
225.28 (1) when the improvements are finished for the entire
225.29 project; or
225.30 (2) when a business occupies the property. If a business
225.31 occupies the property and the subsidy grantor expects that other
225.32 businesses will also occupy the same property, the grantor may
225.33 assign a separate benefit date for each business when it first
225.34 occupies the property.
225.35 Subd. 3. [BUSINESS SUBSIDY.] "Business subsidy" or
225.36 "subsidy" means a state or local government agency grant,
226.1 contribution of personal property, real property,
226.2 infrastructure, the principal amount of a loan at rates below
226.3 those commercially available to the recipient, any reduction or
226.4 deferral of any tax or any fee, any guarantee of any payment
226.5 under any loan, lease, or other obligation, or any preferential
226.6 use of government facilities given to a business.
226.7 The following forms of financial assistance are not a
226.8 business subsidy:
226.9 (1) a business subsidy of less than $25,000;
226.10 (2) assistance that is generally available to all
226.11 businesses or to a general class of similar businesses, such as
226.12 a line of business, size, location, or similar general criteria;
226.13 (3) public improvements to buildings or lands owned by the
226.14 state or local government that serve a public purpose and do not
226.15 principally benefit a single business or defined group of
226.16 businesses at the time the improvements are made;
226.17 (4) redevelopment property polluted by contaminants as
226.18 defined in section 116J.552, subdivision 3;
226.19 (5) assistance provided for the sole purpose of renovating
226.20 old or decaying building stock or bringing it up to code,
226.21 provided that the assistance is equal to or less than 50 percent
226.22 of the total cost;
226.23 (6) assistance provided to organizations whose primary
226.24 mission is to provide job readiness and training services if the
226.25 sole purpose of the assistance is to provide those services;
226.26 (7) assistance for housing;
226.27 (8) assistance for pollution control or abatement;
226.28 (9) assistance for energy conservation;
226.29 (10) tax reductions resulting from conformity with federal
226.30 tax law;
226.31 (11) workers' compensation and unemployment compensation;
226.32 (12) benefits derived from regulation;
226.33 (13) indirect benefits derived from assistance to
226.34 educational institutions;
226.35 (14) funds from bonds allocated under chapter 474A;
226.36 (15) assistance for a collaboration between a Minnesota
227.1 higher education institution and a business;
227.2 (16) assistance for a tax increment financing soils
227.3 condition district as defined under section 469.174, subdivision
227.4 19;
227.5 (17) redevelopment when the recipient's investment in the
227.6 purchase of the site and in site preparation is 70 percent or
227.7 more of the assessor's current year's estimated market value;
227.8 and
227.9 (18) general changes in tax increment financing law and
227.10 other general tax law changes of a principally technical nature.
227.11 Subd. 4. [GRANTOR.] "Grantor" means any state or local
227.12 government agency with the authority to grant a business subsidy.
227.13 Subd. 5. [LOCAL GOVERNMENT AGENCY.] "Local government
227.14 agency" includes a statutory or home rule charter city, housing
227.15 and redevelopment authority, town, county, port authority,
227.16 economic development authority, community development agency,
227.17 nonprofit entity created by a local government agency, or any
227.18 other entity created by or authorized by a local government with
227.19 authority to provide business subsidies.
227.20 Subd. 6. [RECIPIENT.] "Recipient" means any for-profit or
227.21 nonprofit business entity that receives a business subsidy.
227.22 Only nonprofit entities with at least 100 full-time equivalent
227.23 positions and with a ratio of highest to lowest paid employee,
227.24 that exceeds ten to one, determined on the basis of full-time
227.25 equivalent positions, are included in this definition.
227.26 Subd. 7. [STATE GOVERNMENT AGENCY.] "State government
227.27 agency" means any state agency that has the authority to award
227.28 business subsidies.
227.29 Sec. 2. [116J.994] [REGULATING LOCAL AND STATE BUSINESS
227.30 SUBSIDIES.]
227.31 Subdivision 1. [PUBLIC PURPOSE.] A business subsidy must
227.32 meet a public purpose other than increasing the tax base. Job
227.33 retention may only be used as a public purpose in cases where
227.34 job loss is imminent and demonstrable.
227.35 Subd. 2. [DEVELOPING A SET OF CRITERIA.] A business
227.36 subsidy may not be granted until the grantor has adopted
228.1 criteria after a public hearing for awarding business subsidies
228.2 that comply with this section. The criteria must include a
228.3 policy regarding the wages to be paid for the jobs created. The
228.4 commissioner of trade and economic development may assist local
228.5 government agencies in developing criteria.
228.6 Subd. 3. [SUBSIDY AGREEMENT.] (a) A recipient must enter
228.7 into a subsidy agreement with the grantor of the subsidy that
228.8 includes:
228.9 (1) a description of the subsidy, including the amount and
228.10 type of subsidy, and type of district if the subsidy is tax
228.11 increment financing;
228.12 (2) a statement of the public purposes for the subsidy;
228.13 (3) goals for the subsidy;
228.14 (4) a description of the financial obligation of the
228.15 recipient if the goals are not met;
228.16 (5) a statement of why the subsidy is needed;
228.17 (6) a commitment to continue operations at the site where
228.18 the subsidy is used for at least five years after the benefit
228.19 date;
228.20 (7) the name and address of the parent corporation of the
228.21 recipient, if any; and
228.22 (8) a list of all financial assistance by all grantors for
228.23 the project.
228.24 (b) Business subsidies in the form of grants must be
228.25 structured as forgivable loans. If a business subsidy is not
228.26 structured as a forgivable loan, the agreement must state the
228.27 fair market value of the subsidy to the recipient, including the
228.28 value of conveying property at less than a fair market price, or
228.29 other in-kind benefits to the recipient.
228.30 (c) If a business subsidy benefits more than one recipient,
228.31 the grantor must assign a proportion of the business subsidy to
228.32 each recipient that signs a subsidy agreement. The proportion
228.33 assessed to each recipient must reflect a reasonable estimate of
228.34 the recipient's share of the total benefits of the project.
228.35 (d) The state or local government agency and the recipient
228.36 must both sign the subsidy agreement and, if the grantor is a
229.1 local government agency, the agreement must be approved by the
229.2 local elected governing body, except for the St. Paul Port
229.3 Authority and a seaway port authority.
229.4 Subd. 4. [WAGE AND JOB GOALS.] The subsidy agreement, in
229.5 addition to any other goals, must include: (1) goals for the
229.6 number of jobs created, which may include separate goals for the
229.7 number of part-time or full-time jobs, or, in cases where job
229.8 loss is imminent and demonstrable, goals for the number of jobs
229.9 retained; and (2) wage goals for the jobs created or retained.
229.10 In addition to other specific goal time frames, the wage
229.11 and job goals must contain specific goals to be attained within
229.12 two years of the benefit date.
229.13 Subd. 5. [PUBLIC NOTICE AND HEARING.] (a) Before granting
229.14 a business subsidy that exceeds $500,000 for a state government
229.15 grantor and $100,000 for a local government grantor, the grantor
229.16 must provide public notice and a hearing on the subsidy. A
229.17 public hearing and notice under this subdivision is not required
229.18 if a hearing and notice on the subsidy is otherwise required by
229.19 law.
229.20 (b) Public notice of a proposed business subsidy under this
229.21 subdivision by a state government grantor must be published in
229.22 the State Register. Public notice of a proposed business
229.23 subsidy under this subdivision by a local government grantor
229.24 must be published in a local newspaper of general circulation.
229.25 The public notice must identify the location at which
229.26 information about the business subsidy, including a copy of the
229.27 subsidy agreement, is available. Published notice should be
229.28 sufficiently conspicuous in size and placement to distinguish
229.29 the notice from the surrounding text. The grantor must make the
229.30 information available in printed paper copies and, if possible,
229.31 on the Internet. The government agency must provide at least a
229.32 ten-day notice for the public hearing.
229.33 (c) The public notice must include the date, time, and
229.34 place of the hearing.
229.35 (d) The public hearing by a state government grantor must
229.36 be held in St. Paul.
230.1 Subd. 6. [FAILURE TO MEET GOALS.] The subsidy agreement
230.2 must specify the recipient's obligation if the recipient does
230.3 not fulfill the agreement. At a minimum, the agreement must
230.4 require a recipient failing to meet subsidy agreement goals to
230.5 pay back the assistance plus interest to the grantor provided
230.6 that repayment may be prorated to reflect partial fulfillment of
230.7 goals. The interest rate must be set at the implicit price
230.8 deflator defined under section 275.70, subdivision 2. The
230.9 grantor, after a public hearing, may extend for up to one year
230.10 the period for meeting the goals provided in a subsidy agreement.
230.11 A recipient that fails to meet the terms of a subsidy
230.12 agreement may not receive a business subsidy from any grantor
230.13 for a period of five years from the date of failure or until a
230.14 recipient satisfies its repayment obligation under this
230.15 subdivision, whichever occurs first.
230.16 Before a grantor signs a business subsidy agreement, the
230.17 grantor must check with the compilation and summary report
230.18 required by this section to determine if the recipient is
230.19 eligible to receive a business subsidy.
230.20 Subd. 7. [REPORTS BY RECIPIENTS TO GRANTORS.] (a) A
230.21 business subsidy grantor must monitor the progress by the
230.22 recipient in achieving agreement goals.
230.23 (b) A recipient must provide information regarding goals
230.24 and results for two years after the benefit date or until the
230.25 goals are met, whichever is later. If the goals are not met,
230.26 the recipient must continue to provide information on the
230.27 subsidy until the subsidy is repaid. The information must be
230.28 filed on forms developed by the commissioner in cooperation with
230.29 representatives of local government. Copies of the completed
230.30 forms must be sent to the commissioner and the local government
230.31 agency that provided the business subsidy. The report must
230.32 include:
230.33 (1) the type, public purpose, and amount of subsidies and
230.34 type of district, if the subsidy is tax increment financing;
230.35 (2) the hourly wage of each job created with separate bands
230.36 of wages;
231.1 (3) the sum of the hourly wages and cost of health
231.2 insurance provided by the employer with separate bands of wages;
231.3 (4) the date the job and wage goals will be reached;
231.4 (5) a statement of goals identified in the subsidy
231.5 agreement and an update on achievement of those goals;
231.6 (6) the location of the recipient prior to receiving the
231.7 business subsidy;
231.8 (7) why the recipient did not complete the project outlined
231.9 in the subsidy agreement at their previous location, if the
231.10 recipient was previously located at another site in Minnesota;
231.11 (8) the name and address of the parent corporation of the
231.12 recipient, if any;
231.13 (9) a list of all financial assistance by all grantors for
231.14 the project; and
231.15 (10) other information the commissioner may request.
231.16 A report must be filed no later than March 1 of each year for
231.17 the previous year and within 30 days after the deadline for
231.18 meeting the job and wage goals.
231.19 (c) Financial assistance that is excluded from the
231.20 definition of "business subsidy" by section 116J.993,
231.21 subdivision 3, clauses (4), (5), (8), and (16) is subject to the
231.22 reporting requirements of this subdivision, except that the
231.23 report of the recipient must include:
231.24 (1) the type, public purpose, and amount of the financial
231.25 assistance, and type of district if the subsidy is tax increment
231.26 financing;
231.27 (2) progress towards meeting goals stated in the subsidy
231.28 agreement and the public purpose of the assistance;
231.29 (3) the hourly wage of each job created with separate bands
231.30 of wages;
231.31 (4) the sum of the hourly wages and cost of health
231.32 insurance provided by the employer with separate bands of wages;
231.33 (5) the location of the recipient prior to receiving the
231.34 assistance; and
231.35 (6) other information the grantor requests.
231.36 (d) If the recipient does not submit its report, the local
232.1 government agency must mail the recipient a warning within one
232.2 week of the required filing date. If, after 14 days of the
232.3 postmarked date of the warning, the recipient fails to provide a
232.4 report, the recipient must pay to the grantor a penalty of $100
232.5 for each subsequent day until the report is filed. The maximum
232.6 penalty shall not exceed $1,000.
232.7 Subd. 8. [REPORTS BY GRANTORS.] (a) Local government
232.8 agencies of a local government with a population of more than
232.9 2,500 and state government agencies, regardless of whether or
232.10 not they have awarded any business subsidies, must file a report
232.11 by April 1 of each year with the commissioner. Local government
232.12 agencies of a local government with a population of 2,500 or
232.13 less are exempt from filing this report if they have not awarded
232.14 a business subsidy in the past five years. The local government
232.15 agency must include a list of recipients that did not complete
232.16 the report and of recipients that have not met their job and
232.17 wage goals within two years and the steps being taken to bring
232.18 them into compliance or to recoup the subsidy.
232.19 If the commissioner has not received the report by April 1
232.20 from an entity required to report, the commissioner shall issue
232.21 a warning to the government agency. If the commissioner has
232.22 still not received the report by June 1 of that same year from
232.23 an entity required to report, then that government agency may
232.24 not award any business subsidies until the report has been filed.
232.25 (b) The commissioner of trade and economic development must
232.26 provide information on reporting requirements to state and local
232.27 government agencies.
232.28 Subd. 9. [COMPILATION AND SUMMARY REPORT.] The department
232.29 of trade and economic development must publish a compilation and
232.30 summary of the results of the reports for the previous calendar
232.31 year by July 1 of each year. The reports of the government
232.32 agencies to the department and the compilation and summary
232.33 report of the department must be made available to the public.
232.34 The commissioner must coordinate the production of reports
232.35 so that useful comparisons across time periods and across
232.36 grantors can be made. The commissioner may add other
233.1 information to the report as the commissioner deems necessary to
233.2 evaluate business subsidies. Among the information in the
233.3 summary and compilation report, the commissioner must include:
233.4 (1) total amount of subsidies awarded in each development
233.5 region of the state;
233.6 (2) distribution of business subsidy amounts by size of the
233.7 business subsidy;
233.8 (3) distribution of business subsidy amounts by time
233.9 category, such as monthly or quarterly;
233.10 (4) distribution of subsidies by type and by public
233.11 purpose;
233.12 (5) percent of all business subsidies that reached their
233.13 goals;
233.14 (6) percent of business subsidies that did not reach their
233.15 goals by two years from the benefit date;
233.16 (7) total dollar amount of business subsidies that did not
233.17 meet their goals after two years from the benefit date;
233.18 (8) percent of subsidies that did not meet their goals and
233.19 that did not receive repayment;
233.20 (9) list of recipients that have failed to meet the terms
233.21 of a subsidy agreement in the past five years and have not
233.22 satisfied their repayment obligations;
233.23 (10) number of part-time and full-time jobs within separate
233.24 bands of wages; and
233.25 (11) benefits paid within separate bands of wages.
233.26 Sec. 3. [116J.995] [ECONOMIC GRANTS.]
233.27 An appropriation rider in an appropriation to the
233.28 department of trade and economic development that specifies that
233.29 the appropriation be granted to a particular business or class
233.30 of businesses must contain a statement of the expected benefits
233.31 associated with the grant. At a minimum, the statement must
233.32 include goals for the number of jobs created, wages paid, and
233.33 the tax revenue increases due to the grant.
233.34 Sec. 4. [REPEALER.]
233.35 Minnesota Statutes 1998, section 116J.991, is repealed.
233.36 Sec. 5. [EFFECTIVE DATE.]
234.1 Sections 1 to 4 are effective for business subsidies
234.2 entered into or state appropriations authorized on or after
234.3 August 1, 1999.
234.4 ARTICLE 13
234.5 TAX FORFEITURE AND DELINQUENCY PROCEDURES
234.6 Section 1. Minnesota Statutes 1998, section 92.51, is
234.7 amended to read:
234.8 92.51 [TAXATION; REDEMPTION; SPECIAL CERTIFICATE.]
234.9 State lands sold by the director become taxable. A
234.10 description of the tract sold, with the name of the purchaser,
234.11 must be transmitted to the proper county auditor. The auditor
234.12 must extend the land for taxation like other land. Only the
234.13 interest in the land vested by the land sale certificate in its
234.14 holder may be sold for delinquent taxes. Upon production to the
234.15 county treasurer of the tax certificate given upon tax sale, in
234.16 case the lands have not been redeemed, the tax purchaser has the
234.17 right to pay the principal and interest then in default upon the
234.18 land sale certificate as its assignee. To redeem from a tax
234.19 sale, the person redeeming must pay the county treasurer, for
234.20 the holder and owner of the tax sale certificate, in addition to
234.21 all sums required to be paid in other cases, all amounts paid by
234.22 the holder and owner for interest and principal upon the land
234.23 sale certificate, with interest at 12 percent per year. When
234.24 the director receives the tax certificate with the county
234.25 auditor's certificate of the expiration of the time for
234.26 redemption, and the county treasurer's receipt for all
234.27 delinquent interest and penalty on the land sale certificate,
234.28 the director shall issue the holder and owner of the tax
234.29 certificate a special certificate with the same terms and the
234.30 same effect as the original land sale certificate.
234.31 Sec. 2. Minnesota Statutes 1998, section 279.37,
234.32 subdivision 1, is amended to read:
234.33 Subdivision 1. [COMPOSITION INTO ONE ITEM.] Delinquent
234.34 taxes upon any parcel of real estate may be composed into one
234.35 item or amount by confession of judgment at any time prior to
234.36 the forfeiture of the parcel of land to the state for taxes, for
235.1 the aggregate amount of all the taxes, costs, penalties, and
235.2 interest accrued against the parcel, as hereinafter provided in
235.3 this section. Taxes upon property which, for the previous
235.4 year's assessment, was classified as mineral property,
235.5 employment property, or commercial or industrial property shall
235.6 are only be eligible to be composed into any confession of
235.7 judgment under this section as provided in subdivision
235.8 1a. Delinquent taxes for property that has been reclassified
235.9 from 4bb to 4b under section 273.1319 may not be composed into a
235.10 confession of judgment under this subdivision. Delinquent taxes
235.11 on unimproved land are eligible to be composed into a confession
235.12 of judgment only if the land is classified as homestead,
235.13 agricultural, or timberland in the previous year or is eligible
235.14 for installment payment under subdivision 1a. The entire parcel
235.15 is eligible for the ten-year installment plan as provided in
235.16 subdivision 2 if 25 percent or more of the market value of the
235.17 parcel is eligible for confession of judgment under this
235.18 subdivision.
235.19 Sec. 3. Minnesota Statutes 1998, section 279.37,
235.20 subdivision 1a, is amended to read:
235.21 Subd. 1a. [CLASS 3A PROPERTY.] (a) The delinquent taxes
235.22 upon a parcel of property which was classified class 3a, for the
235.23 previous year's assessment and had a total market value of less
235.24 than $200,000 or less for that same assessment shall be eligible
235.25 to be composed into a confession of judgment. Property
235.26 qualifying under this subdivision shall be subject to the same
235.27 provisions as provided in this section except as herein provided
235.28 in paragraphs (b) to (d).
235.29 (a) (b) Current year taxes and penalty due at the time the
235.30 confession of judgment is entered must be paid.
235.31 (c) The down payment shall must include all special
235.32 assessments due in the current tax year, all delinquent special
235.33 assessments, and 20 percent of the ad valorem tax, penalties,
235.34 and interest accrued against the parcel. The balance
235.35 remaining shall be is payable in four equal annual installments;
235.36 and
236.1 (b) (d) The amounts entered in judgment shall bear interest
236.2 at the rate provided in section 279.03, subdivision 1a,
236.3 commencing with the date the judgment is entered. The interest
236.4 rate is subject to change each year on the unpaid balance in the
236.5 manner provided in section 279.03, subdivision 1a.
236.6 Sec. 4. Minnesota Statutes 1998, section 279.37,
236.7 subdivision 2, is amended to read:
236.8 Subd. 2. [INSTALLMENT PAYMENTS.] The owner of any such
236.9 parcel, or any person to whom the right to pay taxes has been
236.10 given by statute, mortgage, or other agreement, may make and
236.11 file with the county auditor of the county wherein in which the
236.12 parcel is located a written offer to pay the current taxes each
236.13 year before they become delinquent, or to contest the taxes
236.14 under Minnesota Statutes 1941, sections 278.01 to 278.13, and
236.15 agree to confess judgment for the amount hereinbefore provided,
236.16 as determined by the county auditor, and shall thereby waive.
236.17 By filing the offer, the owner waives all irregularities in
236.18 connection with the tax proceedings affecting the parcel and any
236.19 defense or objection which the owner may have to the
236.20 proceedings, and shall thereby waive also waives the
236.21 requirements of any notice of default in the payment of any
236.22 installment or interest to become due pursuant to the composite
236.23 judgment to be so entered, and shall tender therewith. With the
236.24 offer, the owner shall tender one-tenth of the amount of the
236.25 delinquent taxes, costs, penalty, and interest, and shall tender
236.26 all current year taxes and penalty due at the time the
236.27 confession of judgment is entered. In the offer, the owner
236.28 shall agree therein to pay the balance in nine equal
236.29 installments, with interest as provided in section 279.03,
236.30 payable annually on installments remaining unpaid from time to
236.31 time, on or before December 31 of each year following the year
236.32 in which judgment was confessed, which. The offer shall must be
236.33 substantially as follows:
236.34 "To the court administrator of the district court of
236.35 ........... county, I, ....................., am the owner of
236.36 the following described parcel of real estate situate located in
237.1 .................... county, Minnesota, to-wit:
237.2 .............................. Upon which that real estate there
237.3 are delinquent taxes for the year ........., and prior years, as
237.4 follows: (here insert year of delinquency and the total amount
237.5 of delinquent taxes, costs, interest, and penalty) do hereby.
237.6 By signing this document I offer to confess judgment in the sum
237.7 of $...... and hereby waive all irregularities in the tax
237.8 proceedings affecting such these taxes and any defense or
237.9 objection which I may have thereto to them, and direct judgment
237.10 to be entered for the amount hereby confessed amount stated
237.11 above, less minus the sum of $............, hereby tendered to
237.12 be paid with this document, being which is one-tenth of the
237.13 amount of said the taxes, costs, penalty, and interest; stated
237.14 above. I agree to pay the balance of said the judgment in nine
237.15 equal, annual installments, with interest as provided in section
237.16 279.03, payable annually, on the installments remaining
237.17 unpaid from time to time, said. I agree to pay the installments
237.18 and interest to be paid on or before December 31 of each year
237.19 following the year in which this judgment is confessed and
237.20 current taxes each year before they become delinquent, or within
237.21 30 days after the entry of final judgment in proceedings to
237.22 contest such the taxes under Minnesota Statutes 1941, sections
237.23 278.01 to 278.13.
237.24 Dated this .............., ......."
237.25 Sec. 5. Minnesota Statutes 1998, section 281.23,
237.26 subdivision 2, is amended to read:
237.27 Subd. 2. [MAY COVER PARCELS BID IN AT SAME TAX SALE FORM.]
237.28 All parcels of land bid in at the same tax judgment sale and
237.29 having the same period of redemption shall be covered by a
237.30 single posted notice, but a separate notice may be posted for
237.31 any parcel which may be omitted. Such The notice of expiration
237.32 of redemption must contain the tax parcel identification numbers
237.33 and legal descriptions of parcels subject to notice of
237.34 expiration of redemption provisions prescribed under subdivision
237.35 1. The notice must also indicate the names of taxpayers and fee
237.36 owners of record in the office of the county auditor at the time
238.1 the notice is prepared and names of those parties who have filed
238.2 their addresses according to section 276.041 and the amount of
238.3 payment necessary to redeem as of the date of the notice. At
238.4 the option of the county auditor, the current filed addresses of
238.5 affected persons may be included on the notice. The notice
238.6 shall be is sufficient if substantially in the following form:
238.7 "NOTICE OF EXPIRATION OF REDEMPTION
238.8 Office of the County Auditor
238.9 County of ......................., State of Minnesota.
238.10 To all persons interested having an interest in the lands
238.11 hereinafter described in this notice:
238.12 You are hereby notified that the parcels of land
238.13 hereinafter described, situated in this notice and located in
238.14 the county of ................................, state of
238.15 Minnesota, were bid in for the state on the
238.16 ......................... day of .......................,
238.17 ......., at the tax judgment sale of land for delinquent taxes
238.18 for the year .......; that the legal descriptions and tax parcel
238.19 identification numbers of such parcels and names of the
238.20 taxpayers and fee owners and in addition those parties who have
238.21 filed their addresses pursuant to section 276.041, and the
238.22 amount necessary to redeem as of the date hereof and, at the
238.23 election of the county auditor, the current filed addresses of
238.24 any such persons, are as follows: are subject to forfeiture to
238.25 the state of Minnesota because of nonpayment of delinquent
238.26 property taxes, special assessments, penalties, interest, and
238.27 costs levied on those parcels. The time for redemption from
238.28 forfeiture expires if a redemption is not made by the later of
238.29 (1) 60 days after service of this notice on all persons having
238.30 an interest in the lands of record at the office of the county
238.31 recorder or registrar of titles, or (2) by the second Monday in
238.32 May. The redemption must be made in my office.
238.33 Names (and
238.34 Current Filed
238.35 Addresses) for
238.36 the Taxpayers
239.1 and Fee Owners
239.2 and in Addition
239.3 Those Parties
239.4 Who Have Filed Amount
239.5 Their Addresses Tax Necessary to
239.6 Pursuant to Legal Parcel Redeem as of
239.7 section 276.041 Description Number Date Hereof
239.8 of Notice
239.9 ................ ........... ...... ............
239.10 ................ ........... ...... ............
239.11 That the time for redemption of such lands from such sale
239.12 will expire 60 days after service of notice and the filing of
239.13 proof thereof in my office, as provided by law. The redemption
239.14 must be made in my office.
239.15 FAILURE TO REDEEM SUCH THE LANDS PRIOR TO THE EXPIRATION
239.16 OF REDEMPTION WILL RESULT IN THE LOSS OF THE LAND AND
239.17 FORFEITURE OF SAID LAND TO THE STATE OF MINNESOTA.
239.18 Inquiries as to the these proceedings set forth above can
239.19 be made to the County Auditor for the ............... County of
239.20 ..............., whose address is set forth below.
239.21 Witness my hand and official seal this
239.22 ............................ day of ................, .......
239.23 .........................
239.24 County Auditor
239.25 (OFFICIAL SEAL)
239.26 .........................
239.27 (Address)
239.28 .........................
239.29 (Telephone)."
239.30 Such The notice shall must be posted by the auditor in the
239.31 auditor's office, subject to public inspection, and shall must
239.32 remain so posted until at least one week after the date of the
239.33 last publication of notice, as hereinafter provided in this
239.34 section. Proof of such posting shall must be made by the
239.35 certificate of the auditor, filed in the auditor's office.
239.36 Sec. 6. Minnesota Statutes 1998, section 281.23,
240.1 subdivision 4, is amended to read:
240.2 Subd. 4. [PROOF OF PUBLICATION.] An affidavit establishing
240.3 proof of publication of such the notice affidavit, as provided
240.4 by law, shall must be filed in the office of the county
240.5 auditor. A single published notice shall be sufficient for all
240.6 may include parcels of land bid in at the same different tax
240.7 judgment sale sales, having the same period but included parcels
240.8 must have a common year for expiration of redemption, and
240.9 covered by a notice or notices kept posted during the time of
240.10 the publication, as hereinbefore provided.
240.11 Sec. 7. Minnesota Statutes 1998, section 281.23,
240.12 subdivision 6, is amended to read:
240.13 Subd. 6. [SERVICE OF NOTICE.] (a) Forthwith Immediately
240.14 after the commencement of such publication or mailing the county
240.15 auditor shall deliver to the sheriff of the county or any other
240.16 person not less than 18 years of age a sufficient number of
240.17 copies of such the notice of expiration of redemption for
240.18 service upon on the persons in possession of all parcels of such
240.19 land as are actually occupied, and documentation if the
240.20 certified mail notice was returned as undeliverable or the
240.21 notice was not mailed to the address associated with the
240.22 property. Within 30 days after receipt thereof of the notice,
240.23 the sheriff or other person serving the notice shall make such
240.24 investigation investigate as may be necessary to ascertain
240.25 whether or not the parcels covered by such the notice are
240.26 actually occupied parcels, and shall serve a copy of such the
240.27 notice of expiration of redemption upon the person in possession
240.28 of each parcel found to be an occupied parcel, in the manner
240.29 prescribed for serving summons in a civil action. If the
240.30 sheriff or another person serving the notice has made at least
240.31 two attempts to serve the notice of expiration of redemption,
240.32 one between the weekday hours of 8:00 a.m. and 5:00 p.m. and the
240.33 other on a different day and different time period, the sheriff
240.34 or another person serving the notice may accomplish this service
240.35 by posting a copy of the notice of expiration of redemption on a
240.36 conspicuous location on the parcel. The sheriff or other person
241.1 serving the notice shall make prompt return to the auditor as to
241.2 all notices so served and as to all parcels found vacant and
241.3 unoccupied and parcels served by posting. Such The return shall
241.4 must be made upon on a copy of such the notice and shall be
241.5 is prima facie evidence of the facts therein stated in it.
241.6 If the notice is served by the sheriff, the sheriff shall
241.7 receive from the county, in addition to other compensation
241.8 prescribed by law, such fees and mileage for service on persons
241.9 in possession as are prescribed by law for such service in other
241.10 cases, and shall also receive such compensation for making
241.11 investigation and return as to vacant and unoccupied lands as
241.12 the county board may fix, subject to appeal to the district
241.13 court as in case of other claims against the county. As to
241.14 either service upon persons in possession or return as to vacant
241.15 lands, the sheriff shall charge mileage only for one trip if the
241.16 occupants of more than two tracts are served simultaneously, and
241.17 in such case mileage shall must be prorated and charged
241.18 equitably against all such owners.
241.19 (b) The secretary of state shall receive sheriff's service
241.20 for all out-of-state interests.
241.21 Sec. 8. Minnesota Statutes 1998, section 282.01,
241.22 subdivision 1, is amended to read:
241.23 Subdivision 1. [CLASSIFICATION AS CONSERVATION OR
241.24 NONCONSERVATION.] It is the general policy of this state to
241.25 encourage the best use of tax-forfeited lands, recognizing that
241.26 some lands in public ownership should be retained and managed
241.27 for public benefits while other lands should be returned to
241.28 private ownership. Parcels of land becoming the property of the
241.29 state in trust under law declaring the forfeiture of lands to
241.30 the state for taxes shall must be classified by the county board
241.31 of the county in which the parcels lie as conservation or
241.32 nonconservation. In making the classification the board shall
241.33 consider the present use of adjacent lands, the productivity of
241.34 the soil, the character of forest or other growth, accessibility
241.35 of lands to established roads, schools, and other public
241.36 services, their peculiar suitability or desirability for
242.1 particular uses and the suitability of the forest resources on
242.2 the land for multiple use, sustained yield management. The
242.3 classification, furthermore, must encourage and foster a mode of
242.4 land utilization that will facilitate the economical and
242.5 adequate provision of transportation, roads, water supply,
242.6 drainage, sanitation, education, and recreation; facilitate
242.7 reduction of governmental expenditures; conserve and develop the
242.8 natural resources; and foster and develop agriculture and other
242.9 industries in the districts and places best suited to them.
242.10 In making the classification the county board may use
242.11 information made available by any office or department of the
242.12 federal, state, or local governments, or by any other person or
242.13 agency possessing pertinent information at the time the
242.14 classification is made. The lands may be reclassified from time
242.15 to time as the county board may consider considers necessary or
242.16 desirable, except for conservation lands held by the state free
242.17 from any trust in favor of any taxing district.
242.18 If the lands are located within the boundaries of an
242.19 organized town, with taxable valuation in excess of $20,000, or
242.20 incorporated municipality, the classification or
242.21 reclassification and sale must first be approved by the town
242.22 board of the town or the governing body of the municipality in
242.23 which the lands are located. The town board of the town or the
242.24 governing body of the municipality is considered to have
242.25 approved the classification or reclassification and sale if the
242.26 county board is not notified of the disapproval of the
242.27 classification or reclassification and sale within 90 60 days of
242.28 the date the request for approval was transmitted to the town
242.29 board of the town or governing body of the municipality. If the
242.30 town board or governing body desires to acquire any parcel lying
242.31 in the town or municipality by procedures authorized in this
242.32 section, it must file a written application with the county
242.33 board to withhold the parcel from public sale. The application
242.34 must be filed within 90 60 days of the request for
242.35 classification or reclassification and sale. The county board
242.36 shall then withhold the parcel from public sale for one year six
243.1 months. A municipality or governmental subdivision shall pay
243.2 maintenance costs incurred by the county during the six-month
243.3 period while the property is withheld from public sale, provided
243.4 the property is not offered for public sale after the six-month
243.5 period. A clerical error made by county officials does not
243.6 serve to eliminate the request of the town board or governing
243.7 body if the board or governing body has forwarded the
243.8 application to the county auditor.
243.9 Sec. 9. Minnesota Statutes 1998, section 282.01,
243.10 subdivision 4, is amended to read:
243.11 Subd. 4. [SALE: METHOD, REQUIREMENTS, EFFECTS.] The sale
243.12 shall must be conducted by the county auditor at the county seat
243.13 of the county in which the parcels lie, provided except that, in
243.14 St. Louis and Koochiching counties, the sale may be conducted in
243.15 any county facility within the county, and. The parcels shall
243.16 must be sold for cash only and at not less than the appraised
243.17 value, unless the county board of the county shall have has
243.18 adopted a resolution providing for their sale on terms, in which
243.19 event the resolution shall control controls with respect thereto
243.20 to the sale. When the sale is made on terms other than for cash
243.21 only (1) a payment of at least ten percent of the purchase price
243.22 must be made at the time of purchase, thereupon and the balance
243.23 shall must be paid in no more than ten equal annual
243.24 installments, or (2) the payments must be made in accordance
243.25 with county board policy, but in no event may the board require
243.26 more than 12 installments annually, and the contract term must
243.27 not be for more than ten years. No Standing timber or timber
243.28 products shall must not be removed from these lands until an
243.29 amount equal to the appraised value of all standing timber or
243.30 timber products on the lands at the time of purchase has been
243.31 paid by the purchaser; provided, that in case any. If a parcel
243.32 of land bearing standing timber or timber products is sold at
243.33 public auction for more than the appraised value, the amount bid
243.34 in excess of the appraised value shall must be allocated between
243.35 the land and the timber in proportion to the their respective
243.36 appraised values thereof, and no. In that case, standing timber
244.1 or timber products shall must not be removed from the land until
244.2 the amount of the excess bid allocated to timber or timber
244.3 products has been paid in addition to the appraised
244.4 value thereof of the land. The purchaser is entitled to
244.5 immediate possession, subject to the provisions of any existing
244.6 valid lease made in behalf of the state.
244.7 For sales occurring on or after July 1, 1982, the unpaid
244.8 balance of the purchase price is subject to interest at the rate
244.9 determined pursuant to section 549.09. The unpaid balance of
244.10 the purchase price for sales occurring after December 31, 1990,
244.11 is subject to interest at the rate determined in section 279.03,
244.12 subdivision 1a. The interest rate is subject to change each
244.13 year on the unpaid balance in the manner provided for rate
244.14 changes in section 549.09 or 279.03, subdivision 1a, whichever,
244.15 is applicable. Interest on the unpaid contract balance on sales
244.16 occurring before July 1, 1982, is payable at the rate applicable
244.17 to the sale at the time that the sale occurred.
244.18 Sec. 10. Minnesota Statutes 1998, section 282.01,
244.19 subdivision 7, is amended to read:
244.20 Subd. 7. [COUNTY SALES; NOTICE, PURCHASE PRICE,
244.21 DISPOSITION.] The sale herein provided for shall must commence
244.22 at such the time as determined by the county board of the county
244.23 wherein such in which the parcels lie, shall direct are
244.24 located. The county auditor shall offer the parcels of land in
244.25 order in which they appear in the notice of sale, and shall sell
244.26 them to the highest bidder, but not for a less sum less than the
244.27 appraised value, until all of the parcels of land shall have
244.28 been offered, and thereafter. Then the county auditor shall
244.29 sell any remaining parcels to anyone offering to pay the
244.30 appraised value thereof, except that if the person could have
244.31 repurchased a parcel of property under section 282.012 or
244.32 282.241, that person shall not be allowed to may not purchase
244.33 that same parcel of property at the sale under this subdivision
244.34 for a purchase price less than the sum of all delinquent taxes
244.35 and, assessments, penalties, interest, and costs due at the time
244.36 of forfeiture computed under section 282.251, together with
245.1 penalties, interest, and costs that accrued or would have
245.2 accrued if the parcel had not forfeited to the state and any
245.3 special assessments for improvements certified as of the date of
245.4 sale. Said The sale shall must continue until all such
245.5 the parcels are sold or until the county board shall order
245.6 orders a reappraisal or shall withdraw withdraws any or all such
245.7 of the parcels from sale. Such The list of lands may be added
245.8 to and the added lands may be sold at any time by publishing the
245.9 descriptions and appraised values of such. The added lands must
245.10 be: (1) parcels of land as shall that have become forfeited and
245.11 classified as nonconservation since the commencement of any
245.12 prior sale or such; (2) parcels as shall that have been
245.13 reappraised, or such; (3) parcels as shall that have been
245.14 reclassified as nonconservation; or such (4) other parcels as
245.15 that are subject to sale but were omitted from the existing list
245.16 for any reason. The descriptions and appraised values must be
245.17 published in the same manner as hereinafter provided for the
245.18 publication of the original list, provided that any. Parcels
245.19 added to such the list shall must first be offered for sale to
245.20 the highest bidder before they are sold at appraised value. All
245.21 parcels of land not offered for immediate sale, as well as
245.22 parcels of such lands as that are offered and not immediately
245.23 sold shall, continue to be held in trust by the state for the
245.24 taxing districts interested in each of said the parcels, under
245.25 the supervision of the county board, and such. Those parcels
245.26 may be used for public purposes until sold, as directed by the
245.27 county board may direct.
245.28 Sec. 11. Minnesota Statutes 1998, section 282.04,
245.29 subdivision 2, is amended to read:
245.30 Subd. 2. [RIGHTS BEFORE SALE; IMPROVEMENTS, INSURANCE,
245.31 DEMOLITION.] Until after Before the sale of a parcel of
245.32 forfeited land the county auditor may, with the approval of the
245.33 county board of commissioners, provide for the repair and
245.34 improvement of any building or structure located upon such the
245.35 parcel, and may provide for maintenance of tax-forfeited lands,
245.36 if it is determined by the county board that such repairs or,
246.1 improvements, or maintenance are necessary for the operation,
246.2 use, preservation and safety thereof; and, of the building or
246.3 structure. If so authorized by the county board, the county
246.4 auditor may insure any such the building or structure against
246.5 loss or damage resulting from fire or windstorm, may purchase
246.6 workers' compensation insurance to insure the county against
246.7 claims for injury to the persons therein employed in the
246.8 building or structure by the county, and may insure the county,
246.9 its officers and employees against claims for injuries to
246.10 persons or property because of the management, use or operation
246.11 of such the building or structure. Such The county auditor may,
246.12 with the approval of the county board, provide for the
246.13 demolition of any such the building or structure, which has been
246.14 determined by the county board to be within the purview of
246.15 section 299F.10, and for the sale of salvaged
246.16 materials therefrom from the building or structure. Such The
246.17 county auditor, with the approval of the county board, may
246.18 provide for the sale of abandoned personal property under either
246.19 chapter 345 or 566, as appropriate. The net proceeds from any
246.20 sale of such the personal property, salvaged materials, of
246.21 timber or other products, or leases made under this law shall
246.22 must be deposited in the forfeited tax sale fund and shall must
246.23 be distributed in the same manner as if the parcel had been sold.
246.24 Such The county auditor, with the approval of the county
246.25 board, may provide for the demolition of any structure or
246.26 structures on tax-forfeited lands, if in the opinion of the
246.27 county board, the county auditor, and the land commissioner, if
246.28 there be is one, the sale of such the land with such the
246.29 structure or structures thereon on it, or the continued
246.30 existence of such the structure or structures by reason of age,
246.31 dilapidated condition or excessive size as compared with nearby
246.32 structures, will result in a material lessening of net tax
246.33 capacities of real estate in the vicinity of such the
246.34 tax-forfeited lands, or if the demolition of such the structure
246.35 or structures will aid in disposing of such the tax-forfeited
246.36 property.
247.1 Before the sale of a parcel of forfeited land located in an
247.2 urban area, the county auditor may with the approval of the
247.3 county board provide for the grading thereof of the land by
247.4 filling or the removal of any surplus material therefrom, and
247.5 where from it. If the physical condition of forfeited lands is
247.6 such that a reasonable grading thereof of the lands is necessary
247.7 for the protection and preservation of the property of any
247.8 adjoining owner, such the adjoining property owner or owners may
247.9 make application apply to the county board to have such the
247.10 grading done. If, after considering said the application, the
247.11 county board believes that such the grading will enhance the
247.12 value of such the forfeited lands commensurate with the cost
247.13 involved, it may approve the same it, and any such the work
247.14 shall must be performed under the supervision of the county or
247.15 city engineer, as the case may be, and the expense thereof paid
247.16 from the forfeited tax sale fund.
247.17 Sec. 12. Minnesota Statutes 1998, section 282.05, is
247.18 amended to read:
247.19 282.05 [PROCEEDS APPORTIONED.]
247.20 The net proceeds received from the sale or rental of
247.21 forfeited lands shall be apportioned to the general funds of the
247.22 state or municipal subdivision thereof, in the manner
247.23 hereinafter provided, and shall be first used by the municipal
247.24 subdivision to retire any indebtedness then existing in section
247.25 282.08.
247.26 Sec. 13. Minnesota Statutes 1998, section 282.08, is
247.27 amended to read:
247.28 282.08 [APPORTIONMENT OF PROCEEDS TO TAXING DISTRICTS.]
247.29 The net proceeds from the sale or rental of any parcel of
247.30 forfeited land, or from the sale of any products therefrom from
247.31 the forfeited land, shall must be apportioned by the county
247.32 auditor to the taxing districts interested therein in the land,
247.33 as follows:
247.34 (1) Such the portion as may be required to pay any amounts
247.35 included in the appraised value under section 282.01,
247.36 subdivision 3, as representing increased value due to any public
248.1 improvement made after forfeiture of such the parcel to the
248.2 state, but not exceeding the amount certified by the clerk of
248.3 the municipality, shall must be apportioned to the municipal
248.4 subdivision entitled thereto to it;
248.5 (2) Such the portion as may be required to pay any amount
248.6 included in the appraised value under section 282.019,
248.7 subdivision 5, representing increased value due to response
248.8 actions taken after forfeiture of such the parcel to the state,
248.9 but not exceeding the amount of expenses certified by the
248.10 pollution control agency or the commissioner of
248.11 agriculture, shall must be apportioned to the agency or the
248.12 commissioner of agriculture and deposited in the fund from which
248.13 the expenses were paid;
248.14 (3) Such the portion of the remainder as may be required to
248.15 discharge any special assessment chargeable against such the
248.16 parcel for drainage or other purpose whether due or deferred at
248.17 the time of forfeiture, shall must be apportioned to the
248.18 municipal subdivision entitled thereto to it; and
248.19 (4) any balance shall must be apportioned as follows:
248.20 (a) Any (i) The county board may annually by resolution set
248.21 aside no more than 30 percent of the receipts remaining to be
248.22 used for timber development on tax-forfeited land and dedicated
248.23 memorial forests, to be expended under the supervision of the
248.24 county board. It shall must be expended only on projects
248.25 approved by the commissioner of natural resources.
248.26 (b) Any (ii) The county board may annually by resolution
248.27 set aside no more than 20 percent of the receipts remaining to
248.28 be used for the acquisition and maintenance of county parks or
248.29 recreational areas as defined in sections 398.31 to 398.36, to
248.30 be expended under the supervision of the county board.
248.31 (c) If the board does not avail itself of the authority
248.32 under paragraph (a) or (b) (iii) Any balance remaining shall
248.33 must be apportioned as follows: county, 40 percent; town or
248.34 city, 20 percent; and school district, 40 percent, and if the
248.35 board avails itself of the authority under paragraph (a) or (b)
248.36 the balance remaining shall be apportioned among the county,
249.1 town or city, and school district in the proportions in this
249.2 paragraph above stated, provided, however, that in unorganized
249.3 territory that portion which should would have accrued to the
249.4 township shall must be administered by the county board of
249.5 commissioners.
249.6 Sec. 14. Minnesota Statutes 1998, section 282.09, is
249.7 amended to read:
249.8 282.09 [FORFEITED TAX SALE FUND.]
249.9 Subdivision 1. [MONEY PLACED IN FUND; FEES AND
249.10 DISBURSEMENTS.] The county auditor and county treasurer shall
249.11 place all money received through the operation of sections
249.12 282.01 to 282.13 in a fund to be known as the forfeited tax sale
249.13 fund, and all disbursements and costs shall must be charged
249.14 against that fund, when allowed by the county board. Members of
249.15 the county board may be paid a per diem pursuant to section
249.16 375.055, subdivision 1, and reimbursed for their necessary
249.17 expenses, and may receive mileage as fixed by law. The amount
249.18 of compensation of a land commissioner and assistants, if a land
249.19 commissioner is appointed, shall must be in the amount
249.20 determined by the county board. The county auditor shall must
249.21 receive 50 cents for each certificate of sale, each contract for
249.22 deed and each lease executed by the auditor, and, in counties
249.23 where no land commissioner is appointed, additional annual
249.24 compensation, not exceeding $300, as fixed by the county board.
249.25 The amount of compensation of any other clerical help that may
249.26 be needed by the county auditor or land commissioner shall must
249.27 be in the amount determined by the county board. All
249.28 compensation provided for herein shall be in this subdivision is
249.29 in addition to other compensation allowed by law. Fees so
249.30 charged in addition to the fee imposed in section 282.014 shall
249.31 must be included in the annual settlement by the county auditor
249.32 as hereinafter provided. On or before February 1 each year, the
249.33 commissioner of revenue shall certify to the commissioner of
249.34 finance, by counties, the total number of state deeds issued and
249.35 reissued during the preceding calendar year for which such fees
249.36 are charged and the total amount thereof of fees. On or before
250.1 March 1 each year, each county shall remit to the commissioner
250.2 of revenue, from the forfeited tax sale fund, the aggregate
250.3 amount of the fees imposed by section 282.014 in the preceding
250.4 calendar year. The commissioner of revenue shall deposit the
250.5 amounts received in the state treasury to the credit of the
250.6 general fund. When disbursements are made from the fund for
250.7 repairs, refunds, expenses of actions to quiet title, or any
250.8 other purpose which particularly affects specific parcels of
250.9 forfeited lands, the amount of such the disbursements shall must
250.10 be charged to the account of the taxing districts interested in
250.11 such parcels forfeited tax sale fund. The county auditor shall
250.12 make an annual settlement of the net proceeds received from
250.13 sales and rentals by the operation of sections 282.01 to 282.13,
250.14 on the settlement day determined in section 276.09, for the
250.15 preceding calendar year.
250.16 Subd. 2. [EXPENDITURES.] In all counties, from said
250.17 "Forfeited Tax Sale Fund," the authorities duly charged with the
250.18 execution of responsible for carrying out the duties imposed by
250.19 sections 282.01 to 282.13, at their discretion, may expend
250.20 moneys in repairing from the forfeited tax sale fund to repair
250.21 any sewer or water main either inside or outside of any curb
250.22 line situated along any property forfeited to the state for
250.23 nonpayment of taxes, to acquire and maintain equipment used
250.24 exclusively for the maintenance and improvement of tax-forfeited
250.25 lands, and to cut down, otherwise destroy or eradicate noxious
250.26 weeds on all tax-forfeited lands. In any year, the money to be
250.27 expended for the cutting down, destruction or eradication of
250.28 noxious weeds shall not exceed in amount more than ten percent
250.29 of the net proceeds of said "Forfeited Tax Sale Fund" during the
250.30 preceding calendar year, or $10,000, whichever is the lesser
250.31 sum, and to maintain tax-forfeited lands.
250.32 Sec. 15. Minnesota Statutes 1998, section 282.241, is
250.33 amended to read:
250.34 282.241 [REPURCHASE AFTER FORFEITURE.]
250.35 The owner at the time of forfeiture, or the owner's heirs,
250.36 devisees, or representatives, or any person to whom the right to
251.1 pay taxes was given by statute, mortgage, or other agreement,
251.2 may repurchase any parcel of land claimed by the state to be
251.3 forfeited to the state for taxes unless before the time
251.4 repurchase is made the parcel is sold under installment
251.5 payments, or otherwise, by the state as provided by law, or is
251.6 under mineral prospecting permit or lease, or proceedings have
251.7 been commenced by the state or any of its political subdivisions
251.8 or by the United States to condemn such the parcel of land. The
251.9 parcel of land may be repurchased for the sum of all delinquent
251.10 taxes and assessments computed under section 282.251, together
251.11 with penalties, interest, and costs, that accrued or would have
251.12 accrued if the parcel of land had not forfeited to the state.
251.13 Except for property which was homesteaded on the date of
251.14 forfeiture, such repurchase shall be is permitted during one
251.15 year only from the date of forfeiture, and in any case only
251.16 after the adoption of a resolution by the board of county
251.17 commissioners determining that thereby by repurchase undue
251.18 hardship or injustice resulting from the forfeiture will be
251.19 corrected, or that permitting such the repurchase will promote
251.20 the use of such the lands that will best serve the public
251.21 interest. If the county board has good cause to believe that a
251.22 repurchase installment payment plan for a particular parcel is
251.23 unnecessary and not in the public interest, the county board may
251.24 require as a condition of repurchase that the entire repurchase
251.25 price be paid at the time of repurchase. A repurchase shall
251.26 be is subject to any easement, lease, or other encumbrance
251.27 granted by the state prior thereto before the repurchase, and if
251.28 said the land is located within a restricted area established by
251.29 any county under Laws 1939, chapter 340, such the repurchase
251.30 shall must not be permitted unless said the resolution with
251.31 respect thereto approving the repurchase is adopted by the
251.32 unanimous vote of the board of county commissioners.
251.33 The person seeking to repurchase under this section shall
251.34 pay all maintenance costs incurred by the county auditor during
251.35 the time the property was tax-forfeited.
251.36 Sec. 16. Minnesota Statutes 1998, section 282.261,
252.1 subdivision 4, is amended to read:
252.2 Subd. 4. [SERVICE FEE.] The county auditor may collect a
252.3 service fee to cover administrative costs as set by the county
252.4 board for each repurchase contract approved application received
252.5 after July 1, 1985. The fee shall must be paid at the time of
252.6 repurchase application and shall must be credited to the county
252.7 general revenue fund.
252.8 Sec. 17. Minnesota Statutes 1998, section 282.261, is
252.9 amended by adding a subdivision to read:
252.10 Subd. 5. [COUNTY MAY IMPOSE CONDITIONS OF REPURCHASE.] The
252.11 county auditor, after receiving county board approval, may
252.12 impose conditions on repurchase of tax-forfeited lands limiting
252.13 the use of the parcel subject to the repurchase, including, but
252.14 not limited to, environmental remediation action plan
252.15 restrictions or covenants, or easements for lines or equipment
252.16 for telephone, telegraph, electric power, or telecommunications.
252.17 Sec. 18. Minnesota Statutes 1998, section 283.10, is
252.18 amended to read:
252.19 283.10 [APPLICATION MUST BE MADE WITHIN TWO YEARS.]
252.20 No such refundment refund shall be granted unless an
252.21 application therefor shall be duly for refund is approved and
252.22 presented to the commissioner of revenue within two years from
252.23 the date of such tax certificate or the state assignment
252.24 certificate.
252.25 Sec. 19. Minnesota Statutes 1998, section 375.192,
252.26 subdivision 2, is amended to read:
252.27 Subd. 2. [PROCEDURE, CONDITIONS.] Upon written application
252.28 by the owner of any property, the county board may grant the
252.29 reduction or abatement of estimated market valuation or taxes
252.30 and of any costs, penalties, or interest on them as the board
252.31 deems just and equitable and order the refund in whole or part
252.32 of any taxes, costs, penalties, or interest which have been
252.33 erroneously or unjustly paid. Except as provided in sections
252.34 469.1812 to 469.1815, no reduction or abatement may be granted
252.35 on the basis of providing an incentive for economic development
252.36 or redevelopment. Except as provided in section 375.194, the
253.1 county board is authorized to may consider and grant reductions
253.2 or abatements on applications only as they relate to taxes
253.3 payable in the current year and the two prior years; provided
253.4 that reductions or abatements for the two prior years shall be
253.5 considered or granted only for (i) clerical errors, or (ii) when
253.6 the taxpayer fails to file for a reduction or an adjustment due
253.7 to hardship, as determined by the county board. The application
253.8 must include the social security number of the applicant. The
253.9 social security number is private data on individuals as defined
253.10 by section 13.02, subdivision 12. All applications must be
253.11 approved by the county assessor, or, if the property is located
253.12 in a city of the first or second class having a city assessor,
253.13 by the city assessor, and by the county auditor before
253.14 consideration by the county board, except that the part of the
253.15 application which is for the abatement of penalty or interest
253.16 must be approved by the county treasurer and county auditor.
253.17 Approval by the county or city assessor is not required for
253.18 abatements of penalty or interest. No reduction, abatement, or
253.19 refund of any special assessments made or levied by any
253.20 municipality for local improvements shall be made unless it is
253.21 also approved by the board of review or similar taxing authority
253.22 of the municipality. Before taking action On any reduction or
253.23 abatement where when the reduction of taxes, costs, penalties,
253.24 and interest exceed $10,000, the county board shall give 20
253.25 days' notice within 20 days to the school board and the
253.26 municipality in which the property is located. The notice must
253.27 describe the property involved, the actual amount of the
253.28 reduction being sought, and the reason for the reduction. If
253.29 the school board or the municipality object to the granting of
253.30 the reduction or abatement, the county board must refer the
253.31 abatement or reduction to the commissioner of revenue with its
253.32 recommendation. The commissioner shall consider the abatement
253.33 or reduction under section 270.07, subdivision 1.
253.34 An appeal may not be taken to the tax court from any order
253.35 of the county board made in the exercise of the discretionary
253.36 authority granted in this section.
254.1 The county auditor shall notify the commissioner of revenue
254.2 of all abatements resulting from the erroneous classification of
254.3 real property, for tax purposes, as nonhomestead property. For
254.4 the abatements relating to the current year's tax processed
254.5 through June 30, the auditor shall notify the commissioner on or
254.6 before July 31 of that same year of all abatement applications
254.7 granted. For the abatements relating to the current year's tax
254.8 processed after June 30 through the balance of the year, the
254.9 auditor shall notify the commissioner on or before the following
254.10 January 31 of all applications granted. The county auditor
254.11 shall submit a form containing the social security number of the
254.12 applicant and such other information the commissioner prescribes.
254.13 Sec. 20. Minnesota Statutes 1998, section 383C.482,
254.14 subdivision 1, is amended to read:
254.15 Subdivision 1. [AUDITOR TO SEARCH RECORDS; CERTIFICATES.]
254.16 The St. Louis county auditor, upon written application of any
254.17 person, shall make search of the records of the auditor's office
254.18 and the county treasurer's office, and ascertain the amount of
254.19 current tax against any lot or parcel of land described in the
254.20 application and the existence of all tax liens and tax sales as
254.21 to such the lot or parcel of land, and certify the result of
254.22 such the search under the seal of office, giving the description
254.23 of the lot or parcel of land, the amount of the current tax, if
254.24 any, and all tax liens and tax sales shown by such records, and
254.25 the amount thereof of liens and tax sales, the year of tax
254.26 covered by such the lien, and the date of tax sale, and the name
254.27 of the purchaser at such tax sale. For the purpose of
254.28 ascertaining the current tax against such a lot or parcel of
254.29 land, the county auditor has the right of access to the records
254.30 of current taxes in the office of the county treasurer.
254.31 Sec. 21. [REPEALER.]
254.32 Minnesota Statutes 1998, sections 92.22; 280.27; 281.13;
254.33 281.38; 284.01; 284.02; 284.03; 284.04; 284.05; and 284.06, are
254.34 repealed.
254.35 Sec. 22. [EFFECTIVE DATES.]
254.36 This article is effective September 1, 1999, except that
255.1 sections 11 and 13 to 15 are effective beginning January 1,
255.2 2000, and except that section 12 is effective for net proceeds
255.3 received after the date of final enactment of this act.
255.4 ARTICLE 14
255.5 WATER AND SANITARY SEWER DISTRICTS
255.6 Section 1. [CEDAR LAKE AREA WATER AND SANITARY SEWER
255.7 DISTRICT; DEFINITIONS.]
255.8 Subdivision 1. [APPLICATION.] In sections 1 to 19, the
255.9 definitions in this section apply.
255.10 Subd. 2. [DISTRICT.] "Cedar lake area water and sanitary
255.11 sewer district" and "district" mean the area over which the
255.12 Cedar lake area water and sanitary sewer board has jurisdiction,
255.13 which includes the area within the city of New Prague and Helena
255.14 and Cedar Lake townships in Scott county. The district shall
255.15 precisely describe the area over which it has jurisdiction by a
255.16 metes and bounds description in the comprehensive plan adopted
255.17 pursuant to section 5. The territory may not be larger than the
255.18 area encompassed by the Cedar Lake improvement district, but it
255.19 may be smaller and the area may include a route along public
255.20 rights-of-way from Cedar Lake to the city of New Prague along
255.21 which the sewer main is laid.
255.22 Subd. 3. [BOARD.] "Water and sanitary sewer board" or
255.23 "board" means the Cedar lake area water and sanitary sewer board
255.24 established for the district as provided in subdivision 2.
255.25 Subd. 4. [PERSON.] "Person" means an individual,
255.26 partnership, corporation, limited liability company,
255.27 cooperative, or other organization or entity, public or private.
255.28 Subd. 5. [LOCAL GOVERNMENTAL UNITS.] "Local governmental
255.29 units" or "governmental units" means Scott county, the city of
255.30 New Prague, and Helena and Cedar Lake Townships in Scott county.
255.31 Subd. 6. [ACQUISITION; BETTERMENT.] "Acquisition" and
255.32 "betterment" have the meanings given in Minnesota Statutes,
255.33 section 475.51.
255.34 Subd. 7. [AGENCY.] "Agency" means the Minnesota pollution
255.35 control agency created in Minnesota Statutes, section 116.02.
255.36 Subd. 8. [SEWAGE.] "Sewage" means all liquid or
256.1 water-carried waste products from whatever sources derived,
256.2 together with any groundwater infiltration and surface water as
256.3 may be present.
256.4 Subd. 9. [POLLUTION OF WATER; SEWER SYSTEM.] "Pollution of
256.5 water" and "sewer system" have the meanings given in Minnesota
256.6 Statutes, section 115.01.
256.7 Subd. 10. [TREATMENT WORKS; DISPOSAL SYSTEM.] "Treatment
256.8 works" and "disposal system" have the meanings given in
256.9 Minnesota Statutes, section 115.01.
256.10 Subd. 11. [INTERCEPTOR.] "Interceptor" means a sewer and
256.11 its necessary appurtenances, including but not limited to mains,
256.12 pumping stations, and sewage flow-regulating and -measuring
256.13 stations, that is:
256.14 (1) designed for or used to conduct sewage originating in
256.15 more than one local governmental unit;
256.16 (2) designed or used to conduct all or substantially all
256.17 the sewage originating in a single local governmental unit from
256.18 a point of collection in that unit to an interceptor or
256.19 treatment works outside that unit; or
256.20 (3) determined by the board to be a major collector of
256.21 sewage used or designed to serve a substantial area in the
256.22 district.
256.23 Subd. 12. [DISTRICT DISPOSAL SYSTEM.] "District disposal
256.24 system" means any and all interceptors or treatment works owned,
256.25 constructed, or operated by the board unless designated by the
256.26 board as local water and sanitary sewer facilities.
256.27 Subd. 13. [MUNICIPALITY.] "Municipality" means any town or
256.28 home rule charter or statutory city.
256.29 Subd. 14. [TOTAL COSTS.] "Total costs of acquisition and
256.30 betterment" and "costs of acquisition and betterment" mean all
256.31 acquisition and betterment expenses permitted to be financed out
256.32 of stopped bond proceeds issued in accordance with section 13,
256.33 whether or not the expenses are in fact financed out of the bond
256.34 proceeds.
256.35 Subd. 15. [CURRENT COSTS.] "Current costs of acquisition,
256.36 betterment, and debt service" means interest and principal
257.1 estimated to be due during the budget year on bonds issued to
257.2 finance said acquisition and betterment and all other costs of
257.3 acquisition and betterment estimated to be paid during the year
257.4 from funds other than bond proceeds and federal or state grants.
257.5 Subd. 16. [RESIDENT.] "Resident" means the owner of a
257.6 dwelling located in the district and receiving water or sewer
257.7 service.
257.8 Sec. 2. [WATER AND SANITARY SEWER BOARD.]
257.9 Subdivision 1. [ESTABLISHMENT.] A water and sanitary sewer
257.10 district is established in Helena and Cedar Lake townships and
257.11 the city of New Prague in Scott county, to be known as the Cedar
257.12 lake area water and sanitary sewer district. The water and
257.13 sewer district is under the control and management of the Cedar
257.14 lake area water and sanitary sewer board. The board is
257.15 established as a public corporation and political subdivision of
257.16 the state with perpetual succession and all the rights, powers,
257.17 privileges, immunities, and duties granted to or imposed upon a
257.18 municipal corporation, as provided in sections 1 to 19.
257.19 Subd. 2. [MEMBERS AND SELECTION.] The board is composed of
257.20 seven members selected as provided in this subdivision. Each of
257.21 the town boards of the townships shall meet to appoint two
257.22 residents to the water and sanitary sewer board. The township
257.23 appointees must live on Cedar lake and must be served by the
257.24 system. One member must be selected by the city of New Prague.
257.25 Two members must be selected by the Scott county board of
257.26 commissioners. Each member has one vote. The first terms are
257.27 as follows: two for one year, two for two years, and three for
257.28 three years, fixed by lot at the district's first meeting.
257.29 Thereafter, all terms are for three years.
257.30 Subd. 3. [TIME LIMITS FOR SELECTION.] The board members
257.31 must be selected as provided in subdivision 2 within 60 days
257.32 after sections 1 to 19 are effective. The successor to each
257.33 board member must be selected at any time within 60 days before
257.34 the expiration of the member's term in the same manner as the
257.35 predecessor was selected. A vacancy on the board must be filled
257.36 within 60 days after it occurs.
258.1 Subd. 4. [VACANCIES.] If the office of a board member
258.2 becomes vacant, the vacancy must be filled for the unexpired
258.3 term in the manner provided for selection of the member who
258.4 vacated the office. The office is deemed vacant under the
258.5 conditions specified in Minnesota Statutes, section 351.02.
258.6 Subd. 5. [REMOVAL.] A board member may be removed by the
258.7 unanimous vote of the governing body appointing the member, with
258.8 or without cause, or for malfeasance or nonfeasance in the
258.9 performance of official duties as provided by Minnesota
258.10 Statutes, sections 351.14 to 351.23.
258.11 Subd. 6. [CERTIFICATES OF SELECTION; OATH OF OFFICE.] A
258.12 certificate of selection of every board member selected under
258.13 subdivision 2 stating the term for which selected, must be made
258.14 by the respective town clerks. The certificates, with the
258.15 approval appended by other authority, if required, must be filed
258.16 with the secretary of state. Counterparts thereof must be
258.17 furnished to the board member and the secretary of the board.
258.18 Each member shall qualify by taking and subscribing the oath of
258.19 office prescribed by the Minnesota Constitution, article 5,
258.20 section 8. The oath, duly certified by the official
258.21 administering the same, must be filed with the secretary of
258.22 state and the secretary of the board.
258.23 Subd. 7. [BOARD MEMBERS' COMPENSATION.] Each board member,
258.24 except the chair, may be paid a per diem compensation in
258.25 accordance with the board's bylaws for meetings and for other
258.26 services as are specifically authorized by the board, not to
258.27 exceed the per diem amount under Minnesota Statutes, section
258.28 15.0575, subdivision 3, and not to exceed $1,000 in any one year.
258.29 The chair may be paid a per diem compensation in accordance with
258.30 the board's bylaws for meetings and for other services
258.31 specifically authorized by the board, not to exceed the per diem
258.32 amount under Minnesota Statutes, section 15.0575, subdivision 3,
258.33 and not to exceed $1,500 in any one year. All members of the
258.34 board must be reimbursed for all reasonable and necessary
258.35 expenses actually incurred in the performance of duties.
258.36 Sec. 3. [GENERAL PROVISIONS FOR ORGANIZATION AND OPERATION
259.1 OF BOARD.]
259.2 Subdivision 1. [ORGANIZATION; OFFICERS; MEETINGS;
259.3 SEAL.] After the selection and qualification of all board
259.4 members, the board must meet to organize the board at the call
259.5 of any two board members, upon seven days' notice by registered
259.6 mail to the remaining board members, at a time and place within
259.7 the district specified in the notice. A majority of the members
259.8 is a quorum at that meeting and all other meetings of the board,
259.9 but a lesser number may meet and adjourn from time to time and
259.10 compel the attendance of absent members. At the first meeting
259.11 the board shall select its officers and conduct other
259.12 organizational business as may be necessary. Thereafter the
259.13 board shall meet regularly at the time and place that the board
259.14 designates by resolution. Special meetings may be held at any
259.15 time upon call of the chair or any two members, upon written
259.16 notice sent by mail to each member at least three days before
259.17 the meeting, or upon other notice as the board by resolution may
259.18 provide, or without notice if each member is present or files
259.19 with the secretary a written consent to the meeting either
259.20 before or after the meeting. Except as otherwise provided in
259.21 sections 1 to 19, any action within the authority of the board
259.22 may be taken by the affirmative vote of a majority of the board
259.23 and may be taken by regular or adjourned regular meeting or at a
259.24 duly held special meeting, but in any case only if a quorum is
259.25 present. Meetings of the board must be open to the public. The
259.26 board may adopt a seal, which must be officially and judicially
259.27 noticed, to authenticate instruments executed by its authority,
259.28 but omission of the seal does not affect the validity of any
259.29 instrument.
259.30 Subd. 2. [CHAIR.] The board shall elect a chair from its
259.31 membership. The term of the first chair of the board expires on
259.32 January 1, 2001, and the terms of successor chairs expire on
259.33 January 1 of each succeeding year. The chair shall preside at
259.34 all meetings of the board, if present, and shall perform all
259.35 other duties and functions usually incumbent upon such an
259.36 officer, and all administrative functions assigned to the chair
260.1 by the board. The board shall elect a vice-chair from its
260.2 membership to act for the chair during temporary absence or
260.3 disability.
260.4 Subd. 3. [SECRETARY AND TREASURER.] The board shall select
260.5 persons who may, but need not be, members of the board, to act
260.6 as its secretary and treasurer. The two offices may be combined.
260.7 The secretary and treasurer shall hold office at the pleasure of
260.8 the board, subject to the terms of any contract of employment
260.9 that the board may enter into with the secretary or treasurer.
260.10 The secretary shall record the minutes of all meetings of the
260.11 board, and be the custodian of all books and records of the
260.12 board except those that the board entrusts to the custody of a
260.13 designated employee. The treasurer is the custodian of all
260.14 money received by the board except as the board otherwise
260.15 entrusts to the custody of a designated employee. The board may
260.16 appoint a deputy to perform any and all functions of either the
260.17 secretary or the treasurer. A secretary or treasurer who is not
260.18 a member of the board or a deputy of either does not have the
260.19 right to vote.
260.20 Subd. 4. [PUBLIC EMPLOYEES.] The executive director and
260.21 other persons employed by the district are public employees and
260.22 have all the rights and duties conferred on public employees
260.23 under Minnesota Statutes, sections 179A.01 to 179A.25. The
260.24 board may elect to have employees become members of either the
260.25 public employees retirement association or the Minnesota state
260.26 retirement system. The compensation and conditions of
260.27 employment of the employees must be governed by rules applicable
260.28 to state employees in the classified service and to the
260.29 provisions of Minnesota Statutes, chapter 15A.
260.30 Subd. 5. [PROCEDURES.] The board shall adopt resolutions
260.31 or bylaws establishing procedures for board action, personnel
260.32 administration, keeping records, approving claims, authorizing
260.33 or making disbursements, safekeeping funds, and auditing all
260.34 financial operations of the board.
260.35 Subd. 6. [SURETY BONDS AND INSURANCE.] The board may
260.36 procure surety bonds for its officers and employees, in amounts
261.1 deemed necessary to ensure proper performance of their duties
261.2 and proper accounting for funds in their custody. It may
261.3 procure insurance against risks to property and liability of the
261.4 board and its officers, agents, and employees for personal
261.5 injuries or death and property damage and destruction, in
261.6 amounts deemed necessary or desirable, with the force and effect
261.7 stated in Minnesota Statutes, chapter 466.
261.8 Sec. 4. [GENERAL POWERS OF BOARD.]
261.9 Subdivision 1. [SCOPE.] The board has all powers necessary
261.10 or convenient to discharge the duties imposed upon it by law.
261.11 The powers include those specified in this section, but the
261.12 express grant or enumeration of powers does not limit the
261.13 generality or scope of the grant of powers contained in this
261.14 subdivision.
261.15 Subd. 2. [SUIT.] The board may sue or be sued.
261.16 Subd. 3. [CONTRACT.] The board may enter into any contract
261.17 necessary or proper for the exercise of its powers or the
261.18 accomplishment of its purposes.
261.19 Subd. 4. [GIFTS, GRANTS, LOANS.] The board may accept
261.20 gifts, apply for and accept grants or loans of money or other
261.21 property from the United States, the state, or any person for
261.22 any of its purposes, enter into any agreement required in
261.23 connection with them, and hold, use, and dispose of the money or
261.24 property in accordance with the terms of the gift, grant, loan,
261.25 or agreement relating to it. With respect to loans or grants of
261.26 funds or real or personal property or other assistance from any
261.27 state or federal government or its agency or instrumentality,
261.28 the board may contract to do and perform all acts and things
261.29 required as a condition or consideration for the gift, grant, or
261.30 loan pursuant to state or federal law or regulations, whether or
261.31 not included among the powers expressly granted to the board in
261.32 sections 1 to 19.
261.33 Subd. 5. [COOPERATIVE ACTION.] The board may act under
261.34 Minnesota Statutes, section 471.59, or any other appropriate law
261.35 providing for joint or cooperative action between governmental
261.36 units.
262.1 Subd. 6. [STUDIES AND INVESTIGATIONS.] The board may
262.2 conduct research studies and programs, collect and analyze data,
262.3 prepare reports, maps, charts, and tables, and conduct all
262.4 necessary hearings and investigations in connection with the
262.5 design, construction, and operation of the district disposal
262.6 system.
262.7 Subd. 7. [EMPLOYEES, TERMS.] The board may employ on terms
262.8 it deems advisable, persons or firms performing engineering,
262.9 legal, or other services of a professional nature; require any
262.10 employee to obtain and file with it an individual bond or
262.11 fidelity insurance policy; and procure insurance in amounts it
262.12 deems necessary against liability of the board or its officers
262.13 or both, for personal injury or death and property damage or
262.14 destruction, with the force and effect stated in Minnesota
262.15 Statutes, chapter 466, and against risks of damage to or
262.16 destruction of any of its facilities, equipment, or other
262.17 property as it deems necessary.
262.18 Subd. 8. [PROPERTY RIGHTS, POWERS.] The board may acquire
262.19 by purchase, lease, condemnation, gift, or grant, any real or
262.20 personal property including positive and negative easements and
262.21 water and air rights, and it may construct, enlarge, improve,
262.22 replace, repair, maintain, and operate any interceptor,
262.23 treatment works, or water facility determined to be necessary or
262.24 convenient for the collection and disposal of sewage in the
262.25 district. Any local governmental unit and the commissioners of
262.26 transportation and natural resources are authorized to convey to
262.27 or permit the use of any of the above-mentioned facilities owned
262.28 or controlled by it, by the board, subject to the rights of the
262.29 holders of any bonds issued with respect to those facilities,
262.30 with or without compensation, without an election or approval by
262.31 any other governmental unit or agency. All powers conferred by
262.32 this subdivision may be exercised both within or without the
262.33 district as may be necessary for the exercise by the board of
262.34 its powers or the accomplishment of its purposes. The board may
262.35 hold, lease, convey, or otherwise dispose of the above-mentioned
262.36 property for its purposes upon the terms and in the manner it
263.1 deems advisable. Unless otherwise provided, the right to
263.2 acquire lands and property rights by condemnation may be
263.3 exercised only in accordance with Minnesota Statutes, sections
263.4 117.011 to 117.232, and applies to any property or interest in
263.5 the property owned by any local governmental unit. Property
263.6 devoted to an actual public use at the time, or held to be
263.7 devoted to such a use within a reasonable time, must not be so
263.8 acquired unless a court of competent jurisdiction determines
263.9 that the use proposed by the board is paramount to the existing
263.10 use. Except in the case of property in actual public use, the
263.11 board may take possession of any property on which condemnation
263.12 proceedings have been commenced at any time after the issuance
263.13 of a court order appointing commissioners for its condemnation.
263.14 Subd. 9. [RELATIONSHIP TO OTHER PROPERTIES.] The board may
263.15 construct or maintain its systems or facilities in, along, on,
263.16 under, over, or through public waters, streets, bridges,
263.17 viaducts, and other public rights-of-way without first obtaining
263.18 a franchise from a county or municipality having jurisdiction
263.19 over them. However, the facilities must be constructed and
263.20 maintained in accordance with the ordinances and resolutions of
263.21 the county or municipality relating to constructing, installing,
263.22 and maintaining similar facilities on public properties and must
263.23 not unnecessarily obstruct the public use of those rights-of-way.
263.24 Subd. 10. [DISPOSAL OF PROPERTY.] The board may sell,
263.25 lease, or otherwise dispose of any real or personal property
263.26 acquired by it which is no longer required for accomplishment of
263.27 its purposes. The property may be sold in the manner provided
263.28 by Minnesota Statutes, section 469.065, insofar as practical.
263.29 The board may give notice of sale as it deems appropriate. When
263.30 the board determines that any property or any part of the
263.31 district disposal system acquired from a local governmental unit
263.32 without compensation is no longer required but is required as a
263.33 local facility by the governmental unit from which it was
263.34 acquired, the board may by resolution transfer it to that
263.35 governmental unit.
263.36 Subd. 11. [AGREEMENTS WITH OTHER GOVERNMENTAL UNITS.] The
264.1 board may contract with the United States or any agency thereof,
264.2 any state or agency thereof, or any regional public planning
264.3 body in the state with jurisdiction over any part of the
264.4 district, or any other municipal or public corporation, or
264.5 governmental subdivision or agency or political subdivision in
264.6 any state, for the joint use of any facility owned by the board
264.7 or such entity, for the operation by that entity of any system
264.8 or facility of the board, or for the performance on the board's
264.9 behalf of any service, including but not limited to planning, on
264.10 terms as may be agreed upon by the contracting parties. Unless
264.11 designated by the board as a local water and sanitary sewer
264.12 facility, any treatment works or interceptor jointly used, or
264.13 operated on behalf of the board, as provided in this
264.14 subdivision, is deemed to be operated by the board for purposes
264.15 of including those facilities in the district disposal system.
264.16 Sec. 5. [COMPREHENSIVE PLAN.]
264.17 Subdivision 1. [BOARD PLAN AND PROGRAM.] The board shall
264.18 adopt a comprehensive plan for the collection, treatment, and
264.19 disposal of sewage in the district for a designated period the
264.20 board deems proper and reasonable. The board shall prepare and
264.21 adopt subsequent comprehensive plans for the collection,
264.22 treatment, and disposal of sewage in the district for each
264.23 succeeding designated period as the board deems proper and
264.24 reasonable. All comprehensive plans of the district shall be
264.25 subject to the planning and zoning authority of Scott county and
264.26 in conformance with all planning and zoning ordinances of Scott
264.27 county. The first plan, as modified by the board, and any
264.28 subsequent plan shall take into account the preservation and
264.29 best and most economic use of water and other natural resources
264.30 in the area; the preservation, use, and potential for use of
264.31 lands adjoining waters of the state to be used for the disposal
264.32 of sewage; and the impact the disposal system will have on
264.33 present and future land use in the area affected. In no case
264.34 shall the comprehensive plan provide for more than 325
264.35 connections to the disposal system. All connections must be
264.36 charged a full assessment. Connections made after the initial
265.1 assessment period ends must be charged an amount equal to the
265.2 initial assessment plus an adjustment for inflation and plus any
265.3 other charges determined to be reasonable and necessary by the
265.4 board. Deferred assessments may be permitted, as provided for
265.5 in Minnesota Statutes, chapter 429. The plans shall include the
265.6 general location of needed interceptors and treatment works, a
265.7 description of the area that is to be served by the various
265.8 interceptors and treatment works, a long-range capital
265.9 improvements program, and any other details as the board deems
265.10 appropriate. In developing the plans, the board shall consult
265.11 with persons designated for the purpose by governing bodies of
265.12 any governmental unit within the district to represent the
265.13 entities and shall consider the data, resources, and input
265.14 offered to the board by the entities and any planning agency
265.15 acting on behalf of one or more of the entities. Each plan,
265.16 when adopted, must be followed in the district and may be
265.17 revised as often as the board deems necessary.
265.18 Subd. 2. [COMPREHENSIVE PLANS; HEARING.] Before adopting
265.19 any subsequent comprehensive plan, the board shall hold a public
265.20 hearing on the proposed plan at a time and place in the district
265.21 that it selects. The hearing may be continued from time to
265.22 time. Not less than 45 days before the hearing, the board shall
265.23 publish notice of the hearing in a newspaper having general
265.24 circulation in the district, stating the date, time, and place
265.25 of the hearing, and the place where the proposed plan may be
265.26 examined by any interested person. At the hearing, all
265.27 interested persons must be permitted to present their views on
265.28 the plan.
265.29 Sec. 6. [POWERS TO ISSUE OBLIGATIONS AND IMPOSE SPECIAL
265.30 ASSESSMENTS.]
265.31 The Cedar lake area water and sanitary sewer board, in
265.32 order to implement the powers granted under sections 1 to 19 to
265.33 establish, maintain, and administer the Cedar lake area water
265.34 and sanitary sewer district, may issue obligations and impose
265.35 special assessments against benefited property within the limits
265.36 of the district benefited by facilities constructed under
266.1 sections 1 to 19 in the manner provided for local governments by
266.2 Minnesota Statutes, chapter 429.
266.3 Sec. 7. [SYSTEM EXPANSION; APPLICATION TO CITIES.]
266.4 The authority of the water and sanitary sewer board to
266.5 establish water or sewer or combined water and sewer systems
266.6 under this section extends to areas within the Cedar lake area
266.7 water and sanitary sewer district organized into cities when
266.8 requested by resolution of the governing body of the affected
266.9 city or when ordered by the Minnesota pollution control agency
266.10 after notice and hearing. For the purpose of any petition filed
266.11 or special assessment levied with respect to any system, the
266.12 entire area to be served within a city must be treated as if it
266.13 were owned by a single person, and the governing body shall
266.14 exercise all the rights and be subject to all the duties of an
266.15 owner of the area, and shall have power to provide for the
266.16 payment of all special assessments and other charges imposed
266.17 upon the area with respect to the system by the appropriation of
266.18 money, the collection of service charges, or the levy of taxes,
266.19 which shall be subject to no limitation of rate or amount.
266.20 Sec. 8. [SEWAGE COLLECTION AND DISPOSAL; POWERS.]
266.21 Subdivision 1. [POWERS.] In addition to all other powers
266.22 conferred upon the board in sections 1 to 19, it has the powers
266.23 specified in this section.
266.24 Subd. 2. [DISCHARGE OF TREATED SEWAGE.] The board may
266.25 discharge the effluent from any treatment works operated by it
266.26 into any waters of the state, subject to approval of the agency
266.27 if required and in accordance with any effluent or water quality
266.28 standards lawfully adopted by the agency, any interstate agency,
266.29 or any federal agency having jurisdiction.
266.30 Subd. 3. [UTILIZATION OF DISTRICT SYSTEM.] The board may
266.31 require any person or local governmental unit to provide for the
266.32 discharge of any sewage, directly or indirectly, into the
266.33 district disposal system, or to connect any disposal system or a
266.34 part of it with the district disposal system wherever reasonable
266.35 opportunity for connection is provided; may regulate the manner
266.36 in which the connections are made; may require any person or
267.1 local governmental unit discharging sewage into the disposal
267.2 system to provide preliminary treatment for it; may prohibit the
267.3 discharge into the district disposal system of any substance
267.4 that it determines will or may be harmful to the system or any
267.5 persons operating it; and may require any local governmental
267.6 unit to discontinue the acquisition, betterment, or operation of
267.7 any facility for the unit's disposal system wherever and so far
267.8 as adequate service is or will be provided by the district
267.9 disposal system.
267.10 Subd. 4. [SYSTEM OF COST RECOVERY TO COMPLY WITH
267.11 APPLICABLE REGULATIONS.] Any charges, connection fees, or other
267.12 cost-recovery techniques imposed on persons discharging sewage
267.13 directly or indirectly into the district disposal system must
267.14 comply with applicable state and federal law, including state
267.15 and federal regulations governing grant applications.
267.16 Sec. 9. [BUDGET.]
267.17 (a) The board shall prepare and adopt, on or before October
267.18 1 in 2000 and each year thereafter, a budget showing for the
267.19 following calendar year or other fiscal year determined by the
267.20 board, sometimes referred to in sections 1 to 19 as the budget
267.21 year, estimated receipts of money from all sources, including
267.22 but not limited to payments by each local governmental unit,
267.23 federal or state grants, taxes on property, and funds on hand at
267.24 the beginning of the year, and estimated expenditures for:
267.25 (1) costs of operation, administration, and maintenance of
267.26 the district disposal system;
267.27 (2) cost of acquisition and betterment of the district
267.28 disposal system; and
267.29 (3) debt service, including principal and interest, on
267.30 general obligation bonds and certificates issued pursuant to
267.31 section 13, and any money judgments entered by a court of
267.32 competent jurisdiction.
267.33 (b) Expenditures within these general categories, and any
267.34 other categories as the board may from time to time determine,
267.35 must be itemized in detail as the board prescribes. The board
267.36 and its officers, agents, and employees must not spend money for
268.1 any purpose other than debt service without having set forth the
268.2 expense in the budget nor in excess of the amount set forth in
268.3 the budget for it. No obligation to make an expenditure of the
268.4 above-mentioned type is enforceable except as the obligation of
268.5 the person or persons incurring it. The board may amend the
268.6 budget at any time by transferring from one purpose to another
268.7 any sums except money for debt service and bond proceeds or by
268.8 increasing expenditures in any amount by which actual cash
268.9 receipts during the budget year exceed the total amounts
268.10 designated in the original budget. The creation of any
268.11 obligation under section 13, or the receipt of any federal or
268.12 state grant is a sufficient budget designation of the proceeds
268.13 for the purpose for which it is authorized, and of the tax or
268.14 other revenue pledged to pay the obligation and interest on it,
268.15 whether or not specifically included in any annual budget.
268.16 Sec. 10. [ALLOCATION OF COSTS.]
268.17 Subdivision 1. [DEFINITION OF CURRENT COSTS.] The
268.18 estimated cost of administration, operation, maintenance, and
268.19 debt service of the district disposal system to be paid by the
268.20 board in each fiscal year and the estimated costs of acquisition
268.21 and betterment of the system that are to be paid during the year
268.22 from funds other than state or federal grants and bond proceeds
268.23 and all other previously unallocated payments made by the board
268.24 pursuant to sections 1 to 19 to be allocated in the fiscal year
268.25 are referred to as current costs and must be allocated by the
268.26 board as provided in subdivision 2 in the budget for that year.
268.27 Subd. 2. [METHOD OF ALLOCATION OF CURRENT COSTS.] Current
268.28 costs must be allocated in the district on an equitable basis as
268.29 the board may determine by resolution to be in the best
268.30 interests of the district. The adoption or revision of any
268.31 method of allocation used by the board must be by the
268.32 affirmative vote of at least two-thirds of the members of the
268.33 board.
268.34 Sec. 11. [TAX LEVIES.]
268.35 To accomplish any duty imposed on it the board may, in
268.36 addition to the powers granted in sections 1 to 19 and in any
269.1 other law or charter, exercise the powers granted any
269.2 municipality by Minnesota Statutes, chapters 117, 412, 429, 475,
269.3 sections 115.46, 444.075, and 471.59, with respect to the area
269.4 in the district. The board may levy taxes upon all taxable
269.5 property in the district for all or a part of the amount payable
269.6 to the board, pursuant to section 10, to be assessed and
269.7 extended as a tax upon that taxable property by the county
269.8 auditor for the next calendar year, free from any limit of rate
269.9 or amount imposed by law or charter. The tax must be collected
269.10 and remitted in the same manner as other general taxes.
269.11 Sec. 12. [PUBLIC HEARING AND SPECIAL ASSESSMENTS.]
269.12 Subdivision 1. [PUBLIC HEARING REQUIREMENT ON SPECIFIC
269.13 PROJECT.] Before the board orders any project involving the
269.14 acquisition or betterment of any interceptor or treatment works,
269.15 all or a part of the cost of which will be allocated pursuant to
269.16 section 10 as current costs, the board must hold a public
269.17 hearing on the proposed project. The hearing must be held
269.18 following two publications in a newspaper having general
269.19 circulation in the district, stating the time and place of the
269.20 hearing, the general nature and location of the project, the
269.21 estimated total cost of acquisition and betterment, that portion
269.22 of costs estimated to be paid out of federal and state grants,
269.23 and that portion of costs estimated to be allocated. The
269.24 estimates must be best available at the time of the meeting and
269.25 if costs exceed the estimate, the project cannot proceed until
269.26 an additional public hearing is held, with notice as required at
269.27 the initial meeting. The two publications must be a week apart
269.28 and the hearing at least three days after the last publication.
269.29 Not less than 45 days before the hearing, notice of the hearing
269.30 must also be mailed to each clerk of all local governmental
269.31 units in the district, but failure to give mailed notice or any
269.32 defects in the notice does not invalidate the proceedings. The
269.33 project may include all or part of one or more interceptors or
269.34 treatment works. A hearing must not be held on a project unless
269.35 the project is within the area covered by the comprehensive plan
269.36 adopted by the board under section 5, except that the hearing
270.1 may be held simultaneously with a hearing on a comprehensive
270.2 plan. A hearing is not required with respect to a project, no
270.3 part of the costs of which are to be allocated as the current
270.4 costs of acquisition, betterment, and debt service.
270.5 Subd. 2. [NOTICE TO BENEFITED PROPERTY OWNERS.] If the
270.6 board proposes to assess against benefited property within the
270.7 district all or any part of the allocable costs of the project
270.8 as provided in subdivision 5, the board shall, not less than two
270.9 weeks before the hearing provided for in subdivision 1, cause
270.10 mailed notice of the hearing to be given to the owner of each
270.11 parcel within the area proposed to be specially assessed and
270.12 shall also give two weeks' published notice of the hearing. The
270.13 notice of hearing must contain the same information provided in
270.14 the notice published by the board pursuant to subdivision 1, and
270.15 a description of the area proposed to be assessed. For the
270.16 purpose of giving mailed notice, owners are those shown to be on
270.17 the records of the county auditor or, in any county where tax
270.18 statements are mailed by the county treasurer, on the records of
270.19 the county treasurer; but other appropriate records may be used
270.20 for this purpose. For properties that are tax exempt or subject
270.21 to taxation on a gross earnings basis and not listed on the
270.22 records of the county auditor or the county treasurer, the
270.23 owners must be ascertained by any practicable means and mailed
270.24 notice given them as herein provided. Failure to give mailed
270.25 notice or any defects in the notice does not invalidate the
270.26 proceedings of the board.
270.27 Subd. 3. [BOARD PROCEEDINGS PERTAINING TO HEARING.] Before
270.28 adoption of the resolution calling for a hearing under this
270.29 section, the board shall secure from the district engineer or
270.30 some other competent person of the board's selection a report
270.31 advising it in a preliminary way as to whether the proposed
270.32 project is feasible and whether it should be made as proposed or
270.33 in connection with some other project and the estimated costs of
270.34 the project as recommended. No error or omission in the report
270.35 invalidates the proceeding. The board may also take other steps
270.36 before the hearing, as will in its judgment provide helpful
271.1 information in determining the desirability and feasibility of
271.2 the project, including but not limited to preparation of plans
271.3 and specifications and advertisement for bids on them. The
271.4 hearing may be adjourned from time to time and a resolution
271.5 ordering the project may be adopted at any time within six
271.6 months after the date of hearing. In ordering the project the
271.7 board may reduce but not increase the extent of the project as
271.8 stated in the notice of hearing and shall find that the project
271.9 as ordered is in accordance with the comprehensive plan and
271.10 program adopted by the board pursuant to section 5.
271.11 Subd. 4. [EMERGENCY ACTION.] If the board by resolution
271.12 adopted by the affirmative vote of not less than two-thirds of
271.13 its members determines that an emergency exists requiring the
271.14 immediate purchase of materials or supplies or the making of
271.15 emergency repairs, it may order the purchase of those supplies
271.16 and materials and the making of the repairs before any hearing
271.17 required under this section. The board must set as early a date
271.18 as practicable for the hearing at the time it declares the
271.19 emergency. All other provisions of this section must be
271.20 followed in giving notice of and conducting the hearing.
271.21 Nothing in this subdivision prevents the board or its agents
271.22 from purchasing maintenance supplies or incurring maintenance
271.23 costs without regard to the requirements of this section.
271.24 Subd. 5. [POWER OF THE BOARD TO SPECIALLY ASSESS.] The
271.25 board may specially assess all or any part of the costs of
271.26 acquisition and betterment as provided in this subdivision, of
271.27 any project ordered under this section. The special assessments
271.28 must be levied in accordance with Minnesota Statutes, sections
271.29 429.051 to 429.081, except as otherwise provided in this
271.30 subdivision. No other provisions of Minnesota Statutes, chapter
271.31 429, apply. For purposes of levying the special assessments,
271.32 the hearing on the project required in subdivision 1 serves as
271.33 the hearing on the making of the original improvement provided
271.34 for by Minnesota Statutes, section 429.051. The area assessed
271.35 may be less than but may not exceed the area proposed to be
271.36 assessed as stated in the notice of hearing on the project
272.1 provided for in subdivision 2.
272.2 Sec. 13. [BONDS, CERTIFICATES, AND OTHER OBLIGATIONS.]
272.3 Subdivision 1. [BUDGET ANTICIPATION CERTIFICATES OF
272.4 INDEBTEDNESS.] At any time after adoption of its annual budget
272.5 and in anticipation of the collection of tax and other revenues
272.6 estimated and set forth by the board in the budget, except in
272.7 the case of deficiency taxes levied under this subdivision and
272.8 taxes levied for the payment of certificates issued under
272.9 subdivision 2, the board may, by resolution, authorize the
272.10 issuance, negotiation, and sale, in accordance with subdivision
272.11 4 in the form and manner and upon terms it determines, of its
272.12 negotiable general obligation certificates of indebtedness in
272.13 aggregate principal amounts not exceeding 50 percent of the
272.14 total amount of tax collections and other revenues, and maturing
272.15 not later than three months after the close of the budget year
272.16 in which issued. The proceeds of the sale of the certificates
272.17 must be used solely for the purposes for which the tax
272.18 collections and other revenues are to be expended under the
272.19 budget.
272.20 All the tax collections and other revenues included in the
272.21 budget for the budget year, after the expenditure of the tax
272.22 collections and other revenues in accordance with the budget,
272.23 must be irrevocably pledged and appropriated to a special fund
272.24 to pay the principal and interest on the certificates when due.
272.25 If for any reason the tax collections and other revenues are
272.26 insufficient to pay the certificates and interest when due, the
272.27 board shall levy a tax in the amount of the deficiency on all
272.28 taxable property in the district and shall appropriate this
272.29 amount when received to the special fund.
272.30 Subd. 2. [EMERGENCY CERTIFICATES OF INDEBTEDNESS.] If in
272.31 any budget year the receipts of tax and other revenues should
272.32 for some unforeseen cause become insufficient to pay the board's
272.33 current expenses, or if any public emergency should subject it
272.34 to the necessity of making extraordinary expenditures, the board
272.35 may by resolution authorize the issuance, negotiation, and sale,
272.36 in accordance with subdivision 4 in the form and manner and upon
273.1 the terms and conditions it determines, of its negotiable
273.2 general obligation certificates of indebtedness in an amount
273.3 sufficient to meet the deficiency. The board shall levy on all
273.4 taxable property in the district a tax sufficient to pay the
273.5 certificates and interest on the certificates and shall
273.6 appropriate all collections of the tax to a special fund created
273.7 for the payment of the certificates and the interest on them.
273.8 Certificates issued under this subdivision mature not later than
273.9 April 1 in the year following the year in which the tax is
273.10 collectible.
273.11 Subd. 3. [GENERAL OBLIGATION BONDS.] The board may by
273.12 resolution authorize the issuance of general obligation bonds
273.13 for the acquisition or betterment of any part of the district
273.14 disposal system, including but without limitation the payment of
273.15 interest during construction and for a reasonable period
273.16 thereafter, or for the refunding of outstanding bonds,
273.17 certificates of indebtedness, or judgments. The board shall
273.18 pledge its full faith and credit and taxing power for the
273.19 payment of the bonds and shall provide for the issuance and sale
273.20 and for the security of the bonds in the manner provided in
273.21 Minnesota Statutes, chapter 475. The board has the same powers
273.22 and duties as a municipality issuing bonds under that law,
273.23 except that no election is required and the debt limitations of
273.24 Minnesota Statutes, chapter 475, do not apply to the bonds. The
273.25 board may also pledge for the payment of the bonds and deduct
273.26 from the amount of any tax levy required under Minnesota
273.27 Statutes, section 475.61, subdivision 1, and any revenues
273.28 receivable under any state and federal grants anticipated by the
273.29 board and may covenant to refund the bonds if and when and to
273.30 the extent that for any reason the revenues, together with other
273.31 funds available and appropriated for that purpose, are not
273.32 sufficient to pay all principal and interest due or about to
273.33 become due, provided that the revenues have not been anticipated
273.34 by the issuance of certificates under subdivision 1.
273.35 Subd. 4. [MANNER OF SALE AND ISSUANCE OF CERTIFICATES.]
273.36 Certificates issued under subdivisions 1 and 2 may be issued and
274.1 sold by negotiation, without public sale, and may be sold at a
274.2 price equal to the percentage of the par value of the
274.3 certificates, plus accrued interest, and bearing interest at the
274.4 rate determined by the board. An election is not required to
274.5 authorize the issuance of the certificates. The certificates
274.6 must bear the same rate of interest after maturity as before and
274.7 the full faith and credit and taxing power of the board must be
274.8 pledged to the payment of the certificates.
274.9 Sec. 14. [DEPOSITORIES.]
274.10 The board shall designate one or more national or state
274.11 banks, or trust companies authorized to do a banking business,
274.12 as official depositories for money of the board, and shall
274.13 require the treasurer to deposit all or a part of the money in
274.14 those institutions. The designation must be in writing and set
274.15 forth all the terms and conditions upon which the deposits are
274.16 made, and must be signed by the chair and treasurer and made a
274.17 part of the minutes of the board.
274.18 Sec. 15. [MONEY, ACCOUNTS, AND INVESTMENTS.]
274.19 Subdivision 1. [RECEIPT AND APPLICATION.] Money received
274.20 by the board must be deposited or invested by the treasurer and
274.21 disposed of as the board may direct in accordance with its
274.22 budget; provided that any money that has been pledged or
274.23 dedicated by the board to the payment of obligations or interest
274.24 on the obligations or expenses incident thereto, or for any
274.25 other specific purpose authorized by law, must be paid by the
274.26 treasurer into the fund to which it has been pledged.
274.27 Subd. 2. [FUNDS AND ACCOUNTS.] (a) The board's treasurer
274.28 shall establish funds and accounts as may be necessary or
274.29 convenient to handle the receipts and disbursements of the board
274.30 in an orderly fashion.
274.31 (b) The funds and accounts must be audited annually by a
274.32 certified public accountant at the expense of the district.
274.33 Subd. 3. [DEPOSIT AND INVESTMENT.] The money on hand in
274.34 those funds and accounts may be deposited in the official
274.35 depositories of the board or invested as provided in this
274.36 subdivision. Any amount not currently needed or required by law
275.1 to be kept in cash on deposit may be invested in obligations
275.2 authorized for the investment of municipal sinking funds by
275.3 Minnesota Statutes, section 475.66. The money may also be held
275.4 under certificates of deposit issued by any official depository
275.5 of the board.
275.6 Subd. 4. [BOND PROCEEDS.] The use of proceeds of all bonds
275.7 issued by the board for the acquisition and betterment of the
275.8 district disposal system, and the use, other than investment, of
275.9 all money on hand in any sinking fund or funds of the board, is
275.10 governed by the provisions of Minnesota Statutes, chapter 475,
275.11 the provisions of sections 1 to 19, and the provisions of
275.12 resolutions authorizing the issuance of the bonds. When
275.13 received, the bond proceeds must be transferred to the treasurer
275.14 of the board for safekeeping, investment, and payment of the
275.15 costs for which they were issued.
275.16 Subd. 5. [AUDIT.] The board shall provide for and pay the
275.17 cost of an independent annual audit of its official books and
275.18 records by the state auditor or a public accountant authorized
275.19 to perform that function under Minnesota Statutes, chapter 6.
275.20 Sec. 16. [SERVICE CONTRACTS WITH GOVERNMENTAL ENTITIES
275.21 OUTSIDE THE JURISDICTION OF THE BOARD.]
275.22 (a) The board may contract with the United States or any
275.23 agency of the federal government, any state or its agency, or
275.24 any municipal or public corporation, governmental subdivision or
275.25 agency or political subdivision in any state, outside the
275.26 jurisdiction of the board, for furnishing services to those
275.27 entities, including but not limited to planning for and the
275.28 acquisition, betterment, operation, administration, and
275.29 maintenance of any or all interceptors, treatment works, and
275.30 local water and sanitary sewer facilities. The board may
275.31 include as one of the terms of the contract that the entity must
275.32 pay to the board an amount agreed upon as a reasonable estimate
275.33 of the proportionate share properly allocable to the entity of
275.34 costs of acquisition, betterment, and debt service previously
275.35 allocated in the district. When payments are made by entities
275.36 to the board, they must be applied in reduction of the total
276.1 amount of costs thereafter allocated in the district, on an
276.2 equitable basis as the board deems to be in the best interests
276.3 of the district, applying so far as practicable and appropriate
276.4 the criteria set forth in section 10, subdivision 2. A
276.5 municipality in the state of Minnesota may enter into a contract
276.6 and perform all acts and things required as a condition or
276.7 consideration therefor consistent with the purposes of sections
276.8 1 to 19, whether or not included among the powers otherwise
276.9 granted to the municipality by law or charter.
276.10 (b) The board shall contract with a qualified entity to
276.11 make necessary inspections of the district facilities, and to
276.12 otherwise process or assist in processing any of the work of the
276.13 district.
276.14 Sec. 17. [CONTRACTS FOR CONSTRUCTION, MATERIALS, SUPPLIES,
276.15 AND EQUIPMENT.]
276.16 When the board orders a project involving the acquisition
276.17 or betterment of a part of the district disposal system, it
276.18 shall cause plans and specifications of the project to be made,
276.19 or if previously made, to be modified, if necessary, and to be
276.20 approved by the agency if required, and after any required
276.21 approval by the agency, one or more contracts for work and
276.22 materials called for by the plans and specification may be
276.23 awarded as provided in Minnesota Statutes, section 471.345.
276.24 Sec. 18. [PROPERTY EXEMPT FROM TAXATION.]
276.25 Any properties, real or personal, owned, leased,
276.26 controlled, used, or occupied by the water and sanitary sewer
276.27 board for any purpose under sections 1 to 19 are declared to be
276.28 acquired, owned, leased, controlled, used, and occupied for
276.29 public, governmental, and municipal purposes, and are exempt
276.30 from taxation by the state or any political subdivision of the
276.31 state. The properties are subject to special assessments levied
276.32 by a political subdivision for a local improvement in amounts
276.33 proportionate to and not exceeding the special benefit received
276.34 by the properties from the improvement.
276.35 Sec. 19. [RELATION TO EXISTING LAWS.]
276.36 Sections 1 to 19 must be given full effect notwithstanding
277.1 the provisions of any law or charter inconsistent with sections
277.2 1 to 19. The powers conferred on the board under sections 1 to
277.3 19 do not in any way diminish or supersede the powers conferred
277.4 on the agency by Minnesota Statutes, chapters 115 to 116.
277.5 Sec. 20. [BANNING JUNCTION AREA WATER AND SANITARY SEWER
277.6 DISTRICT; DEFINITIONS.]
277.7 Subdivision 1. [APPLICATION.] For the purposes of sections
277.8 20 to 38, the terms defined in this section have the meanings
277.9 given them.
277.10 Subd. 2. [DISTRICT.] "Banning Junction area water and
277.11 sanitary sewer district" and "district" mean the area over which
277.12 the Banning Junction area water and sanitary sewer board has
277.13 jurisdiction, including the town of Finlayson and the city of
277.14 Finlayson in Pine county and Banning state park, but only that
277.15 part of the township described in the comprehensive plan adopted
277.16 by the board pursuant to section 24.
277.17 Subd. 3. [BOARD.] "Water and sanitary sewer board" or
277.18 "board" means the Banning Junction area water and sanitary sewer
277.19 board established for the district as provided in subdivision 2.
277.20 Subd. 4. [PERSON.] "Person" means an individual,
277.21 partnership, corporation, limited liability company,
277.22 cooperative, or other organization or entity, public or private.
277.23 Subd. 5. [LOCAL GOVERNMENTAL UNITS.] "Local governmental
277.24 units" or "governmental units" means the town of Finlayson, the
277.25 department of natural resources, and the city of Finlayson.
277.26 Subd. 6. [ACQUISITION; BETTERMENT.] "Acquisition" and
277.27 "betterment" have the meanings given in Minnesota Statutes,
277.28 chapter 475.
277.29 Subd. 7. [AGENCY.] "Agency" means the Minnesota pollution
277.30 control agency created in Minnesota Statutes, chapter 116.
277.31 Subd. 8. [SEWAGE.] "Sewage" means all liquid or
277.32 water-carried waste products from whatever sources derived,
277.33 together with any groundwater infiltration and surface water as
277.34 may be present.
277.35 Subd. 9. [POLLUTION OF WATER; SEWER SYSTEM.] "Pollution of
277.36 water" and "sewer system" have the meanings given in Minnesota
278.1 Statutes, section 115.01.
278.2 Subd. 10. [TREATMENT WORKS; DISPOSAL SYSTEM.] "Treatment
278.3 works" and "disposal system" have the meanings given in
278.4 Minnesota Statutes, section 115.01.
278.5 Subd. 11. [INTERCEPTOR.] "Interceptor" means a sewer and
278.6 its necessary appurtenances, including but not limited to mains,
278.7 pumping stations, and sewage flow-regulating and -measuring
278.8 stations, that is:
278.9 (1) designed for or used to conduct sewage originating in
278.10 more than one local governmental unit;
278.11 (2) designed or used to conduct all or substantially all
278.12 the sewage originating in a single local governmental unit from
278.13 a point of collection in that unit to an interceptor or
278.14 treatment works outside that unit; or
278.15 (3) determined by the board to be a major collector of
278.16 sewage used or designed to serve a substantial area in the
278.17 district.
278.18 Subd. 12. [DISTRICT DISPOSAL SYSTEM.] "District disposal
278.19 system" means any and all interceptors or treatment works owned,
278.20 constructed, or operated by the board unless designated by the
278.21 board as local water and sanitary sewer facilities.
278.22 Subd. 13. [MUNICIPALITY.] "Municipality" means any home
278.23 rule charter or statutory city or town.
278.24 Subd. 14. [TOTAL COSTS.] "Total costs of acquisition and
278.25 betterment" and "costs of acquisition and betterment" mean all
278.26 acquisition and betterment expenses permitted to be financed out
278.27 of stopped bond proceeds issued in accordance with section 32,
278.28 whether or not the expenses are in fact financed out of the bond
278.29 proceeds.
278.30 Subd. 15. [CURRENT COSTS.] "Current costs of acquisition,
278.31 betterment, and debt service" means interest and principal
278.32 estimated to be due during the budget year on bonds issued to
278.33 finance said acquisition and betterment and all other costs of
278.34 acquisition and betterment estimated to be paid during the year
278.35 from funds other than bond proceeds and federal or state grants.
278.36 Subd. 16. [RESIDENT.] "Resident" means the owner of a
279.1 dwelling located in the district and receiving water or sewer
279.2 service.
279.3 Sec. 21. [WATER AND SANITARY SEWER BOARD.]
279.4 Subdivision 1. [ESTABLISHMENT.] A water and sanitary sewer
279.5 district is established for the town of Finlayson, for the
279.6 Banning state park, under the jurisdiction of the Minnesota
279.7 department of natural resources, and for the city of Finlayson
279.8 in Pine county, to be known as the Banning Junction area water
279.9 and sanitary sewer district. The water and sewer district is
279.10 under the control and management of the Banning Junction area
279.11 water and sanitary sewer board. The board is established as a
279.12 public corporation and political subdivision of the state with
279.13 perpetual succession and all the rights, powers, privileges,
279.14 immunities, and duties that may be validly granted to or imposed
279.15 upon a municipal corporation, as provided in sections 20 to 38.
279.16 Subd. 2. [MEMBERS AND SELECTION.] The board is composed of
279.17 five members selected as follows: the town board shall meet to
279.18 appoint three members, one of whom shall be an elected township
279.19 officer, and two of whom shall be persons served by the system,
279.20 the city shall appoint one member, and the department of natural
279.21 resources shall appoint one member to the water and sanitary
279.22 sewer board and each board member shall have one vote. The
279.23 first terms must be as follows: one for one year, two for two
279.24 years, and two for three years, fixed by lot at the district's
279.25 first meeting. Thereafter, all terms are for three years.
279.26 Subd. 3. [TIME LIMITS FOR SELECTION.] The board members
279.27 must be selected as provided in subdivision 2 within 60 days
279.28 after sections 20 to 38 become effective. The successor to each
279.29 board member must be selected at any time within 60 days before
279.30 the expiration of the member's term in the same manner as the
279.31 predecessor was selected. A vacancy on the board must be filled
279.32 within 60 days after it occurs.
279.33 Subd. 4. [VACANCIES.] If the office of a board member
279.34 becomes vacant, the vacancy must be filled for the unexpired
279.35 term in the manner provided for selection of the member who
279.36 vacated the office. The office is deemed vacant under the
280.1 conditions specified in Minnesota Statutes, section 351.02.
280.2 Subd. 5. [REMOVAL.] A board member may be removed by the
280.3 unanimous vote of the governing body appointing the member, with
280.4 or without cause, or for malfeasance or nonfeasance in the
280.5 performance of official duties as provided by Minnesota
280.6 Statutes, sections 351.14 to 351.23.
280.7 Subd. 6. [CERTIFICATES OF SELECTION; OATH OF OFFICE.] A
280.8 certificate of selection of every board member selected under
280.9 subdivision 2 stating the term for which selected, must be made
280.10 by the respective town clerks, city administrator, and by the
280.11 commissioner of natural resources. The certificates, with the
280.12 approval appended by other authority, if required, must be filed
280.13 with the secretary of state. Counterparts thereof must be
280.14 furnished to the board member and the secretary of the board.
280.15 Each member shall qualify by taking and subscribing the oath of
280.16 office prescribed by the Minnesota Constitution, article V,
280.17 section 6. The oath, duly certified by the official
280.18 administering the same, must be filed with the secretary of
280.19 state and the secretary of the board.
280.20 Subd. 7. [BOARD MEMBERS' COMPENSATION.] Each board member,
280.21 except the chair, may be paid a per diem compensation in
280.22 accordance with the board's bylaws for meetings and for other
280.23 services as are specifically authorized by the board, not to
280.24 exceed the per diem amount under Minnesota Statutes, section
280.25 15.0575, subdivision 3, and not to exceed $1,000 in any one
280.26 year. The chair may be paid a per diem compensation in
280.27 accordance with the board's bylaws for meetings and for other
280.28 services specifically authorized by the board, not to exceed the
280.29 per diem amount under Minnesota Statutes, section 15.0575,
280.30 subdivision 3, and not to exceed $1,500 in any one year. All
280.31 members of the board must be reimbursed for all reasonable and
280.32 necessary expenses actually incurred in the performance of
280.33 duties.
280.34 Sec. 22. [GENERAL PROVISIONS FOR ORGANIZATION AND
280.35 OPERATION OF BOARD.]
280.36 Subdivision 1. [ORGANIZATION; OFFICERS; MEETINGS; SEAL.]
281.1 After the selection and qualification of all board members, they
281.2 shall meet to organize the board at the call of any two board
281.3 members, upon seven days' notice by registered mail to the
281.4 remaining board members, at a time and place within the district
281.5 specified in the notice. A majority of the members shall
281.6 constitute a quorum at that meeting and all other meetings of
281.7 the board, but a lesser number may meet and adjourn from time to
281.8 time and compel the attendance of absent members. At the first
281.9 meeting the board shall select its officers and conduct other
281.10 organizational business as may be necessary. Thereafter the
281.11 board shall meet regularly at the time and place that the board
281.12 designates by resolution. Special meetings may be held at any
281.13 time upon call of the chair or any two members, upon written
281.14 notice sent by mail to each member at least three days before
281.15 the meeting, or upon other notice as the board by resolution may
281.16 provide, or without notice if each member is present or files
281.17 with the secretary a written consent to the meeting either
281.18 before or after the meeting. Except as otherwise provided in
281.19 sections 20 to 38, any action within the authority of the board
281.20 may be taken by the affirmative vote of a majority of the board
281.21 and may be taken by regular or adjourned regular meeting or at a
281.22 duly held special meeting, but in any case only if a quorum is
281.23 present. Meetings of the board must be open to the public. The
281.24 board may adopt a seal, which must be officially and judicially
281.25 noticed, to authenticate instruments executed by its authority,
281.26 but omission of the seal does not affect the validity of any
281.27 instrument.
281.28 Subd. 2. [CHAIR.] The board shall elect a chair from its
281.29 membership. The term of the first chair of the board shall
281.30 expire on January 1, 2001, and the terms of successor chairs
281.31 expire on January 1 of each succeeding year. The chair shall
281.32 preside at all meetings of the board, if present, and shall
281.33 perform all other duties and functions usually incumbent upon
281.34 such an officer, and all administrative functions assigned to
281.35 the chair by the board. The board shall elect a vice-chair from
281.36 its membership to act for the chair during temporary absence or
282.1 disability.
282.2 Subd. 3. [SECRETARY AND TREASURER.] The board shall select
282.3 a person or persons who may, but need not be, a member or
282.4 members of the board, to act as its secretary and treasurer.
282.5 The secretary and treasurer shall hold office at the pleasure of
282.6 the board, subject to the terms of any contract of employment
282.7 that the board may enter into with the secretary or treasurer.
282.8 The secretary shall record the minutes of all meetings of the
282.9 board, and be the custodian of all books and records of the
282.10 board except those that the board entrusts to the custody of a
282.11 designated employee. The treasurer is the custodian of all
282.12 money received by the board except as the board otherwise
282.13 entrusts to the custody of a designated employee. The board may
282.14 appoint a deputy to perform any and all functions of either the
282.15 secretary or the treasurer. A secretary or treasurer who is not
282.16 a member of the board or a deputy of either does not have the
282.17 right to vote.
282.18 Subd. 4. [EXECUTIVE DIRECTOR.] The board may appoint an
282.19 executive director, selected solely upon the basis of training,
282.20 experience, and other qualifications and who shall serve at the
282.21 pleasure of the board and at a compensation to be determined by
282.22 the board. The executive director need not be a resident of the
282.23 district. The executive director may also be selected by the
282.24 board to serve as either secretary or treasurer, or both, of the
282.25 board. The executive director shall attend all meetings of the
282.26 board, but shall not vote, and shall have the following powers
282.27 and duties:
282.28 (1) to see that all resolutions, rules, regulations, or
282.29 orders of the board are enforced;
282.30 (2) to appoint and remove, upon the basis of merit and
282.31 fitness, all subordinate officers and regular employees of the
282.32 board except the secretary and the treasurer and their deputies;
282.33 (3) to present to the board plans, studies, and other
282.34 reports prepared for board purposes and recommend to the board
282.35 for adoption the measures the executive director deems necessary
282.36 to enforce or carry out the powers and the duties of the board,
283.1 or the efficient administration of the affairs of the board;
283.2 (4) to keep the board fully advised as to its financial
283.3 condition, and to prepare and submit to the board and to the
283.4 governing bodies of the local governmental units, the board's
283.5 annual budget and other financial information the board may
283.6 request;
283.7 (5) to recommend to the board for adoption rules and
283.8 regulations the executive director deems necessary for the
283.9 efficient operation of the district disposal system; and
283.10 (6) to perform other duties prescribed by the board.
283.11 Subd. 5. [PUBLIC EMPLOYEES.] The executive director and
283.12 other persons employed by the district are public employees and
283.13 have all the rights and duties conferred on public employees
283.14 under Minnesota Statutes, sections 179A.01 to 179A.25. The
283.15 board may elect to have employees become members of either the
283.16 public employees retirement association or the Minnesota state
283.17 retirement system. The compensation and conditions of
283.18 employment of the employees must be governed by rules applicable
283.19 to state employees in the classified service and to the
283.20 provisions of Minnesota Statutes, chapter 15A.
283.21 Subd. 6. [PROCEDURES.] The board shall adopt resolutions
283.22 or bylaws establishing procedures for board action, personnel
283.23 administration, keeping records, approving claims, authorizing
283.24 or making disbursements, safekeeping funds, and auditing all
283.25 financial operations of the board.
283.26 Subd. 7. [SURETY BONDS AND INSURANCE.] The board may
283.27 procure surety bonds for its officers and employees, in amounts
283.28 deemed necessary to ensure proper performance of their duties
283.29 and proper accounting for funds in their custody. It may
283.30 procure insurance against risks to property and liability of the
283.31 board and its officers, agents, and employees for personal
283.32 injuries or death and property damage and destruction, in
283.33 amounts deemed necessary or desirable, with the force and effect
283.34 stated in Minnesota Statutes, chapter 466.
283.35 Sec. 23. [GENERAL POWERS OF BOARD.]
283.36 Subdivision 1. [SCOPE.] The board has all powers necessary
284.1 or convenient to discharge the duties imposed upon it by law.
284.2 The powers include those specified in this section, but the
284.3 express grant or enumeration of powers does not limit the
284.4 generality or scope of the grant of powers contained in this
284.5 subdivision.
284.6 Subd. 2. [SUIT.] The board may sue or be sued.
284.7 Subd. 3. [CONTRACT.] The board may enter into any contract
284.8 necessary or proper for the exercise of its powers or the
284.9 accomplishment of its purposes.
284.10 Subd. 4. [GIFTS, GRANTS, LOANS.] The board may accept
284.11 gifts, apply for and accept grants or loans of money or other
284.12 property from the United States, the state, or any person for
284.13 any of its purposes, enter into any agreement required in
284.14 connection with them, and hold, use, and dispose of the money or
284.15 property in accordance with the terms of the gift, grant, loan,
284.16 or agreement relating to it. With respect to loans or grants of
284.17 funds or real or personal property or other assistance from any
284.18 state or federal government or its agency or instrumentality,
284.19 the board may contract to do and perform all acts and things
284.20 required as a condition or consideration for the gift, grant, or
284.21 loan pursuant to state or federal law or regulations, whether or
284.22 not included among the powers expressly granted to the board in
284.23 sections 20 to 38.
284.24 Subd. 5. [COOPERATIVE ACTION.] The board may act under
284.25 Minnesota Statutes, section 471.59, or any other appropriate law
284.26 providing for joint or cooperative action between governmental
284.27 units.
284.28 Subd. 6. [STUDIES AND INVESTIGATIONS.] The board may
284.29 conduct research studies and programs, collect and analyze data,
284.30 prepare reports, maps, charts, and tables, and conduct all
284.31 necessary hearings and investigations in connection with the
284.32 design, construction, and operation of the district disposal
284.33 system.
284.34 Subd. 7. [EMPLOYEES, TERMS.] The board may employ on terms
284.35 it deems advisable, persons or firms performing engineering,
284.36 legal, or other services of a professional nature; require any
285.1 employee to obtain and file with it an individual bond or
285.2 fidelity insurance policy; and procure insurance in amounts it
285.3 deems necessary against liability of the board or its officers
285.4 or both, for personal injury or death and property damage or
285.5 destruction, with the force and effect stated in Minnesota
285.6 Statutes, chapter 466, and against risks of damage to or
285.7 destruction of any of its facilities, equipment, or other
285.8 property as it deems necessary.
285.9 Subd. 8. [PROPERTY RIGHTS, POWERS.] The board may acquire
285.10 by purchase, lease, condemnation, gift, or grant, any real or
285.11 personal property including positive and negative easements and
285.12 water and air rights, and it may construct, enlarge, improve,
285.13 replace, repair, maintain, and operate any interceptor,
285.14 treatment works, or water facility determined to be necessary or
285.15 convenient for the collection and disposal of sewage in the
285.16 district. Any local governmental unit and the commissioners of
285.17 transportation and natural resources are authorized to convey to
285.18 or permit the use of any of the above-mentioned facilities owned
285.19 or controlled by it, by the board, subject to the rights of the
285.20 holders of any bonds issued with respect to those facilities,
285.21 with or without compensation, without an election or approval by
285.22 any other governmental unit or agency. All powers conferred by
285.23 this subdivision may be exercised both within or without the
285.24 district as may be necessary for the exercise by the board of
285.25 its powers or the accomplishment of its purposes. The board may
285.26 hold, lease, convey, or otherwise dispose of the above-mentioned
285.27 property for its purposes upon the terms and in the manner it
285.28 deems advisable. Unless otherwise provided, the right to
285.29 acquire lands and property rights by condemnation may be
285.30 exercised only in accordance with Minnesota Statutes, sections
285.31 117.011 to 117.232, and shall apply to any property or interest
285.32 in the property owned by any local governmental unit. No
285.33 property devoted to an actual public use at the time, or held to
285.34 be devoted to such a use within a reasonable time, shall be so
285.35 acquired unless a court of competent jurisdiction determines
285.36 that the use proposed by the board is paramount to the existing
286.1 use. Except in the case of property in actual public use, the
286.2 board may take possession of any property on which condemnation
286.3 proceedings have been commenced at any time after the issuance
286.4 of a court order appointing commissioners for its condemnation.
286.5 Subd. 9. [RELATIONSHIP TO OTHER PROPERTIES.] The board may
286.6 construct or maintain its systems or facilities in, along, on,
286.7 under, over, or through public waters, streets, bridges,
286.8 viaducts, and other public rights-of-way without first obtaining
286.9 a franchise from a county or municipality having jurisdiction
286.10 over them. However, the facilities must be constructed and
286.11 maintained in accordance with the ordinances and resolutions of
286.12 the county or municipality relating to constructing, installing,
286.13 and maintaining similar facilities on public properties and must
286.14 not unnecessarily obstruct the public use of those rights-of-way.
286.15 Subd. 10. [DISPOSAL OF PROPERTY.] The board may sell,
286.16 lease, or otherwise dispose of any real or personal property
286.17 acquired by it which is no longer required for accomplishment of
286.18 its purposes. The property may be sold in the manner provided
286.19 by Minnesota Statutes, section 469.065, insofar as practical.
286.20 The board may give notice of sale as it deems appropriate. When
286.21 the board determines that any property or any part of the
286.22 district disposal system acquired from a local governmental unit
286.23 without compensation is no longer required but is required as a
286.24 local facility by the governmental unit from which it was
286.25 acquired, the board may by resolution transfer it to that
286.26 governmental unit.
286.27 Subd. 11. [AGREEMENTS WITH OTHER GOVERNMENTAL UNITS.] The
286.28 board may contract with the United States or any agency thereof,
286.29 any state or agency thereof, or any regional public planning
286.30 body in the state with jurisdiction over any part of the
286.31 district, or any other municipal or public corporation, or
286.32 governmental subdivision or agency or political subdivision in
286.33 any state, for the joint use of any facility owned by the board
286.34 or such entity, for the operation by that entity of any system
286.35 or facility of the board, or for the performance on the board's
286.36 behalf of any service, including but not limited to planning, on
287.1 terms as may be agreed upon by the contracting parties. Unless
287.2 designated by the board as a local water and sanitary sewer
287.3 facility, any treatment works or interceptor jointly used, or
287.4 operated on behalf of the board, as provided in this
287.5 subdivision, is deemed to be operated by the board for purposes
287.6 of including those facilities in the district disposal system.
287.7 Sec. 24. [COMPREHENSIVE PLAN.]
287.8 Subdivision 1. [BOARD PLAN AND PROGRAM.] The board shall
287.9 adopt a comprehensive plan for the collection, treatment, and
287.10 disposal of sewage in the district for a designated period the
287.11 board deems proper and reasonable. The board shall prepare and
287.12 adopt subsequent comprehensive plans for the collection,
287.13 treatment, and disposal of sewage in the district for each
287.14 succeeding designated period as the board deems proper and
287.15 reasonable. The first plan, as modified by the board, and any
287.16 subsequent plan shall take into account the preservation and
287.17 best and most economic use of water and other natural resources
287.18 in the area; the preservation, use, and potential for use of
287.19 lands adjoining waters of the state to be used for the disposal
287.20 of sewage; and the impact the disposal system will have on
287.21 present and future land use in the area affected. The plans
287.22 shall include the general location of needed interceptors and
287.23 treatment works, a description of the area that is to be served
287.24 by the various interceptors and treatment works, a long-range
287.25 capital improvements program, and any other details as the board
287.26 deems appropriate. In developing the plans, the board shall
287.27 consult with persons designated for the purpose by governing
287.28 bodies of any governmental unit within the district to represent
287.29 the entities and shall consider the data, resources, and input
287.30 offered to the board by the entities and any planning agency
287.31 acting on behalf of one or more of the entities. Each plan,
287.32 when adopted, must be followed in the district and may be
287.33 revised as often as the board deems necessary.
287.34 Subd. 2. [COMPREHENSIVE PLANS; HEARING.] Before adopting
287.35 any subsequent comprehensive plan, the board shall hold a public
287.36 hearing on the proposed plan at a time and place in the district
288.1 that it selects. The hearing may be continued from time to
288.2 time. Not less than 45 days before the hearing, the board shall
288.3 publish notice of the hearing in a newspaper having general
288.4 circulation in the district, stating the date, time, and place
288.5 of the hearing, and the place where the proposed plan may be
288.6 examined by any interested person. At the hearing, all
288.7 interested persons must be permitted to present their views on
288.8 the plan.
288.9 Subd. 3. [GOVERNMENTAL UNIT PLANS AND PROGRAMS;
288.10 COORDINATION WITH BOARD'S RESPONSIBILITIES.] Once the board's
288.11 plan is adopted, no construction project involving the
288.12 construction of new sewers or other disposal facilities may be
288.13 undertaken by the local governmental unit unless its governing
288.14 body shall first find the project to be in accordance with the
288.15 governmental unit's comprehensive plan and program as approved
288.16 by the board. Before approval by the board of the comprehensive
288.17 plan and program of any local governmental unit in the district,
288.18 no water and sanitary sewer construction project may be
288.19 undertaken by the governmental unit unless approval of the
288.20 project is first secured from the board as to those features of
288.21 the project affecting the board's responsibilities as determined
288.22 by the board.
288.23 Sec. 25. [POWERS TO ISSUE OBLIGATIONS AND IMPOSE SPECIAL
288.24 ASSESSMENTS.]
288.25 The Banning Junction area water and sanitary sewer board,
288.26 in order to implement the powers granted under sections 20 to 38
288.27 to establish, maintain, and administer the Banning Junction area
288.28 water and sanitary sewer district, may issue obligations and
288.29 impose special assessments against benefited property within the
288.30 limits of the district benefited by facilities constructed under
288.31 sections 20 to 38 in the manner provided for local governments
288.32 by Minnesota Statutes, chapter 429.
288.33 Sec. 26. [SYSTEM EXPANSION; APPLICATION TO CITIES.]
288.34 The authority of the water and sanitary sewer board to
288.35 establish water or sewer or combined water and sewer systems
288.36 under this section extends to areas within the Banning Junction
289.1 area water and sanitary sewer district organized into cities
289.2 when requested by resolution of the governing body of the
289.3 affected city or when ordered by the Minnesota pollution control
289.4 agency after notice and hearing. For the purpose of any
289.5 petition filed or special assessment levied with respect to any
289.6 system, the entire area to be served within a city must be
289.7 treated as if it were owned by a single person, and the
289.8 governing body shall exercise all the rights and be subject to
289.9 all the duties of an owner of the area, and shall have power to
289.10 provide for the payment of all special assessments and other
289.11 charges imposed upon the area with respect to the system by the
289.12 appropriation of money, the collection of service charges, or
289.13 the levy of taxes, which shall be subject to no limitation of
289.14 rate or amount.
289.15 Sec. 27. [SEWAGE COLLECTION AND DISPOSAL; POWERS.]
289.16 Subdivision 1. [POWERS.] In addition to all other powers
289.17 conferred upon the board in sections 20 to 38, it has the powers
289.18 specified in this section.
289.19 Subd. 2. [DISCHARGE OF TREATED SEWAGE.] The board may
289.20 discharge the effluent from any treatment works operated by it
289.21 into any waters of the state, subject to approval of the agency
289.22 if required and in accordance with any effluent or water quality
289.23 standards lawfully adopted by the agency, any interstate agency,
289.24 or any federal agency having jurisdiction.
289.25 Subd. 3. [UTILIZATION OF DISTRICT SYSTEM.] The board may
289.26 require any person or local governmental unit to provide for the
289.27 discharge of any sewage, directly or indirectly, into the
289.28 district disposal system, or to connect any disposal system or a
289.29 part of it with the district disposal system wherever reasonable
289.30 opportunity for connection is provided; may regulate the manner
289.31 in which the connections are made; may require any person or
289.32 local governmental unit discharging sewage into the disposal
289.33 system to provide preliminary treatment for it; may prohibit the
289.34 discharge into the district disposal system of any substance
289.35 that it determines will or may be harmful to the system or any
289.36 persons operating it; and may require any local governmental
290.1 unit to discontinue the acquisition, betterment, or operation of
290.2 any facility for the unit's disposal system wherever and so far
290.3 as adequate service is or will be provided by the district
290.4 disposal system.
290.5 Subd. 4. [SYSTEM OF COST RECOVERY TO COMPLY WITH
290.6 APPLICABLE REGULATIONS.] Any charges, connection fees, or other
290.7 cost-recovery techniques imposed on persons discharging sewage
290.8 directly or indirectly into the district disposal system must
290.9 comply with applicable state and federal law, including state
290.10 and federal regulations governing grant applications.
290.11 Sec. 28. [BUDGET.]
290.12 The board shall prepare and adopt, on or before October 1
290.13 in 1999 and each year thereafter, a budget showing for the
290.14 following calendar year or other fiscal year determined by the
290.15 board, sometimes referred to in sections 20 to 38 as the budget
290.16 year, estimated receipts of money from all sources, including
290.17 but not limited to payments by each local governmental unit,
290.18 federal or state grants, taxes on property, and funds on hand at
290.19 the beginning of the year, and estimated expenditures for:
290.20 (1) costs of operation, administration, and maintenance of
290.21 the district disposal system;
290.22 (2) cost of acquisition and betterment of the district
290.23 disposal system; and
290.24 (3) debt service, including principal and interest, on
290.25 general obligation bonds and certificates issued pursuant to
290.26 section 32, and any money judgments entered by a court of
290.27 competent jurisdiction. Expenditures within these general
290.28 categories, and any other categories as the board may from time
290.29 to time determine, must be itemized in detail as the board
290.30 prescribes. The board and its officers, agents, and employees
290.31 shall not spend money for any purpose other than debt service
290.32 without having set forth the expense in the budget nor in excess
290.33 of the amount set forth in the budget for it. No obligation to
290.34 make an expenditure of the above-mentioned type is enforceable
290.35 except as the obligation of the person or persons incurring it.
290.36 The board may amend the budget at any time by transferring from
291.1 one purpose to another any sums except money for debt service
291.2 and bond proceeds or by increasing expenditures in any amount by
291.3 which actual cash receipts during the budget year exceed the
291.4 total amounts designated in the original budget. The creation
291.5 of any obligation under section 32 or the receipt of any federal
291.6 or state grant is a sufficient budget designation of the
291.7 proceeds for the purpose for which it is authorized, and of the
291.8 tax or other revenue pledged to pay the obligation and interest
291.9 on it, whether or not specifically included in any annual budget.
291.10 Sec. 29. [ALLOCATION OF COSTS.]
291.11 Subdivision 1. [DEFINITION OF CURRENT COSTS.] The
291.12 estimated cost of administration, operation, maintenance, and
291.13 debt service of the district disposal system to be paid by the
291.14 board in each fiscal year and the estimated costs of acquisition
291.15 and betterment of the system that are to be paid during the year
291.16 from funds other than state or federal grants and bond proceeds
291.17 and all other previously unallocated payments made by the board
291.18 pursuant to sections 20 to 38 to be allocated in the fiscal year
291.19 are referred to as current costs and must be allocated by the
291.20 board as provided in subdivision 2 in the budget for that year.
291.21 Subd. 2. [METHOD OF ALLOCATION OF CURRENT COSTS.] Current
291.22 costs must be allocated in the district on an equitable basis as
291.23 the board may determine by resolution to be in the best
291.24 interests of the district. The adoption or revision of any
291.25 method of allocation used by the board must be by the
291.26 affirmative vote of at least two-thirds of the members of the
291.27 board.
291.28 Sec. 30. [TAX LEVIES.]
291.29 To accomplish any duty imposed on it the board may, in
291.30 addition to the powers granted in sections 20 to 38 and in any
291.31 other law or charter, exercise the powers granted any
291.32 municipality by Minnesota Statutes, chapters 117, 412, 429, 475,
291.33 sections 115.46, 444.075, and 471.59, with respect to the area
291.34 in the district. The board may levy taxes upon all taxable
291.35 property in the district for all or a part of the amount payable
291.36 to the board, pursuant to section 29, to be assessed and
292.1 extended as a tax upon that taxable property by the county
292.2 auditor for the next calendar year, free from any limitation of
292.3 rate or amount imposed by law or charter. The tax must be
292.4 collected and remitted in the same manner as other general taxes.
292.5 Sec. 31. [PUBLIC HEARING AND SPECIAL ASSESSMENTS.]
292.6 Subdivision 1. [PUBLIC HEARING REQUIREMENT ON SPECIFIC
292.7 PROJECT.] Before the board orders any project involving the
292.8 acquisition or betterment of any interceptor or treatment works,
292.9 all or a part of the cost of which will be allocated pursuant to
292.10 section 29 as current costs, the board shall hold a public
292.11 hearing on the proposed project. The hearing must be held
292.12 following two publications in a newspaper having general
292.13 circulation in the district, stating the time and place of the
292.14 hearing, the general nature and location of the project, the
292.15 estimated total cost of acquisition and betterment, that portion
292.16 of costs estimated to be paid out of federal and state grants,
292.17 and that portion of costs estimated to be allocated. The
292.18 estimates must be best available at the time of the meeting and
292.19 if costs exceed the estimate, the project cannot proceed until
292.20 an additional public hearing is held, with notice as required at
292.21 the initial meeting. The two publications must be a week apart
292.22 and the hearing at least three days after the last publication.
292.23 Not less than 45 days before the hearing, notice of the hearing
292.24 must also be mailed to each clerk of all local governmental
292.25 units in the district, but failure to give mailed notice or any
292.26 defects in the notice does not invalidate the proceedings. The
292.27 project may include all or part of one or more interceptors or
292.28 treatment works. No hearing may be held on any project unless
292.29 the project is within the area covered by the comprehensive plan
292.30 adopted by the board pursuant to section 24 except that the
292.31 hearing may be held simultaneously with a hearing on a
292.32 comprehensive plan. A hearing is not required with respect to a
292.33 project, no part of the costs of which are to be allocated as
292.34 the current costs of acquisition, betterment, and debt service.
292.35 Subd. 2. [NOTICE TO BENEFITED PROPERTY OWNERS.] If the
292.36 board proposes to assess against benefited property within the
293.1 district all or any part of the allocable costs of the project
293.2 as provided in subdivision 5, the board shall, not less than two
293.3 weeks before the hearing provided for in subdivision 1, cause
293.4 mailed notice of the hearing to be given to the owner of each
293.5 parcel within the area proposed to be specially assessed and
293.6 shall also give two weeks' published notice of the hearing. The
293.7 notice of hearing must contain the same information provided in
293.8 the notice published by the board pursuant to subdivision 1, and
293.9 a description of the area proposed to be assessed. For the
293.10 purpose of giving mailed notice, owners are those shown to be on
293.11 the records of the county auditor or, in any county where tax
293.12 statements are mailed by the county treasurer, on the records of
293.13 the county treasurer; but other appropriate records may be used
293.14 for this purpose. For properties that are tax exempt or subject
293.15 to taxation on a gross earnings basis and not listed on the
293.16 records of the county auditor or the county treasurer, the
293.17 owners must be ascertained by any practicable means and mailed
293.18 notice given them as herein provided. Failure to give mailed
293.19 notice or any defects in the notice does not invalidate the
293.20 proceedings of the board.
293.21 Subd. 3. [BOARD PROCEEDINGS PERTAINING TO HEARING.] Before
293.22 adoption of the resolution calling for a hearing under this
293.23 section, the board shall secure from the district engineer or
293.24 some other competent person of the board's selection a report
293.25 advising it in a preliminary way as to whether the proposed
293.26 project is feasible and whether it should be made as proposed or
293.27 in connection with some other project and the estimated costs of
293.28 the project as recommended. No error or omission in the report
293.29 invalidates the proceeding. The board may also take other steps
293.30 before the hearing, as will in its judgment provide helpful
293.31 information in determining the desirability and feasibility of
293.32 the project, including but not limited to preparation of plans
293.33 and specifications and advertisement for bids on them. The
293.34 hearing may be adjourned from time to time and a resolution
293.35 ordering the project may be adopted at any time within six
293.36 months after the date of hearing. In ordering the project the
294.1 board may reduce but not increase the extent of the project as
294.2 stated in the notice of hearing and shall find that the project
294.3 as ordered is in accordance with the comprehensive plan and
294.4 program adopted by the board pursuant to section 24.
294.5 Subd. 4. [EMERGENCY ACTION.] If the board by resolution
294.6 adopted by the affirmative vote of not less than two-thirds of
294.7 its members determines that an emergency exists requiring the
294.8 immediate purchase of materials or supplies or the making of
294.9 emergency repairs, it may order the purchase of those supplies
294.10 and materials and the making of the repairs before any hearing
294.11 required under this section, provided that the board shall set
294.12 as early a date as practicable for the hearing at the time it
294.13 declares the emergency. All other provisions of this section
294.14 must be followed in giving notice of and conducting the
294.15 hearing. Nothing herein may be construed as preventing the
294.16 board or its agents from purchasing maintenance supplies or
294.17 incurring maintenance costs without regard to the requirements
294.18 of this section.
294.19 Subd. 5. [POWER OF THE BOARD TO SPECIALLY ASSESS.] The
294.20 board may specially assess all or any part of the costs of
294.21 acquisition and betterment as herein provided, of any project
294.22 ordered pursuant to this section. The special assessments must
294.23 be levied in accordance with the provisions of Minnesota
294.24 Statutes, sections 429.051 to 429.081, except as otherwise
294.25 provided in this subdivision. No other provisions of Minnesota
294.26 Statutes, chapter 429, apply. For purposes of levying the
294.27 special assessments, the hearing on the project required in
294.28 subdivision 1 serves as the hearing on the making of the
294.29 original improvement provided for by Minnesota Statutes, section
294.30 429.051. The area assessed may be less than but may not exceed
294.31 the area proposed to be assessed as stated in the notice of
294.32 hearing on the project provided for in subdivision 2.
294.33 Sec. 32. [BONDS, CERTIFICATES, AND OTHER OBLIGATIONS.]
294.34 Subdivision 1. [BUDGET ANTICIPATION CERTIFICATES OF
294.35 INDEBTEDNESS.] At any time after adoption of its annual budget
294.36 and in anticipation of the collection of tax and other revenues
295.1 estimated and set forth by the board in the budget, except in
295.2 the case of deficiency taxes levied under this subdivision and
295.3 taxes levied for the payment of certificates issued under
295.4 subdivision 2, the board may, by resolution, authorize the
295.5 issuance, negotiation, and sale, in accordance with subdivision
295.6 4 in the form and manner and upon terms it determines, of its
295.7 negotiable general obligation certificates of indebtedness in
295.8 aggregate principal amounts not exceeding 50 percent of the
295.9 total amount of tax collections and other revenues, and maturing
295.10 not later than three months after the close of the budget year
295.11 in which issued. The proceeds of the sale of the certificates
295.12 must be used solely for the purposes for which the tax
295.13 collections and other revenues are to be expended pursuant to
295.14 the budget.
295.15 All the tax collections and other revenues included in the
295.16 budget for the budget year, after the expenditure of the tax
295.17 collections and other revenues in accordance with the budget,
295.18 must be irrevocably pledged and appropriated to a special fund
295.19 to pay the principal and interest on the certificates when due.
295.20 If for any reason the tax collections and other revenues are
295.21 insufficient to pay the certificates and interest when due, the
295.22 board shall levy a tax in the amount of the deficiency on all
295.23 taxable property in the district and shall appropriate this
295.24 amount when received to the special fund.
295.25 Subd. 2. [EMERGENCY CERTIFICATES OF INDEBTEDNESS.] If in
295.26 any budget year the receipts of tax and other revenues should
295.27 for some unforeseen cause become insufficient to pay the board's
295.28 current expenses, or if any public emergency should subject it
295.29 to the necessity of making extraordinary expenditures, the board
295.30 may by resolution authorize the issuance, negotiation, and sale,
295.31 in accordance with subdivision 4 in the form and manner and upon
295.32 the terms and conditions it determines, of its negotiable
295.33 general obligation certificates of indebtedness in an amount
295.34 sufficient to meet the deficiency. The board shall levy on all
295.35 taxable property in the district a tax sufficient to pay the
295.36 certificates and interest on the certificates and shall
296.1 appropriate all collections of the tax to a special fund created
296.2 for the payment of the certificates and the interest on them.
296.3 Certificates issued under this subdivision mature not later than
296.4 April 1 in the year following the year in which the tax is
296.5 collectible.
296.6 Subd. 3. [GENERAL OBLIGATION BONDS.] The board may by
296.7 resolution authorize the issuance of general obligation bonds
296.8 for the acquisition or betterment of any part of the district
296.9 disposal system, including but without limitation the payment of
296.10 interest during construction and for a reasonable period
296.11 thereafter, or for the refunding of outstanding bonds,
296.12 certificates of indebtedness, or judgments. The board shall
296.13 pledge its full faith and credit and taxing power for the
296.14 payment of the bonds and shall provide for the issuance and sale
296.15 and for the security of the bonds in the manner provided in
296.16 Minnesota Statutes, chapter 475. The board has the same powers
296.17 and duties as a municipality issuing bonds under that law,
296.18 except that no election is required and the debt limitations of
296.19 Minnesota Statutes, chapter 475, do not apply to the bonds. The
296.20 board may also pledge for the payment of the bonds and deduct
296.21 from the amount of any tax levy required under Minnesota
296.22 Statutes, section 475.61, subdivision 1, and any revenues
296.23 receivable under any state and federal grants anticipated by the
296.24 board and may covenant to refund the bonds if and when and to
296.25 the extent that for any reason the revenues, together with other
296.26 funds available and appropriated for that purpose, are not
296.27 sufficient to pay all principal and interest due or about to
296.28 become due, provided that the revenues have not been anticipated
296.29 by the issuance of certificates under subdivision 1.
296.30 Subd. 4. [MANNER OF SALE AND ISSUANCE OF CERTIFICATES.]
296.31 Certificates issued under subdivisions 1 and 2 may be issued and
296.32 sold by negotiation, without public sale, and may be sold at a
296.33 price equal to the percentage of the par value of the
296.34 certificates, plus accrued interest, and bearing interest at the
296.35 rate determined by the board. No election is required to
296.36 authorize the issuance of the certificates. The certificates
297.1 must bear the same rate of interest after maturity as before and
297.2 the full faith and credit and taxing power of the board must be
297.3 pledged to the payment of the certificates.
297.4 Sec. 33. [DEPOSITORIES.]
297.5 The board shall designate one or more national or state
297.6 banks, or trust companies authorized to do a banking business,
297.7 as official depositories for money of the board, and shall
297.8 require the treasurer to deposit all or a part of the money in
297.9 those institutions. The designation must be in writing and must
297.10 set forth all the terms and conditions upon which the deposits
297.11 are made, and must be signed by the chair and treasurer and made
297.12 a part of the minutes of the board.
297.13 Sec. 34. [MONEY, ACCOUNTS, AND INVESTMENTS.]
297.14 Subdivision 1. [RECEIPT AND APPLICATION.] Money received
297.15 by the board must be deposited or invested by the treasurer and
297.16 disposed of as the board may direct in accordance with its
297.17 budget; provided that any money that has been pledged or
297.18 dedicated by the board to the payment of obligations or interest
297.19 on the obligations or expenses incident thereto, or for any
297.20 other specific purpose authorized by law, must be paid by the
297.21 treasurer into the fund to which it has been pledged.
297.22 Subd. 2. [FUNDS AND ACCOUNTS.] (a) The board's treasurer
297.23 shall establish funds and accounts as may be necessary or
297.24 convenient to handle the receipts and disbursements of the board
297.25 in an orderly fashion.
297.26 (b) The funds and accounts must be audited annually by a
297.27 certified public accountant at the expense of the district.
297.28 Subd. 3. [DEPOSIT AND INVESTMENT.] The money on hand in
297.29 those funds and accounts may be deposited in the official
297.30 depositories of the board or invested as provided in this
297.31 subdivision. Any amount not currently needed or required by law
297.32 to be kept in cash on deposit may be invested in obligations
297.33 authorized for the investment of municipal sinking funds by
297.34 Minnesota Statutes, section 475.66. The money may also be held
297.35 under certificates of deposit issued by any official depository
297.36 of the board.
298.1 Subd. 4. [BOND PROCEEDS.] The use of proceeds of all bonds
298.2 issued by the board for the acquisition and betterment of the
298.3 district disposal system, and the use, other than investment, of
298.4 all money on hand in any sinking fund or funds of the board, is
298.5 governed by the provisions of Minnesota Statutes, chapter 475,
298.6 the provisions of sections 20 to 38, and the provisions of
298.7 resolutions authorizing the issuance of the bonds. When
298.8 received, the bond proceeds must be transferred to the treasurer
298.9 of the board for safekeeping, investment, and payment of the
298.10 costs for which they were issued.
298.11 Subd. 5. [AUDIT.] The board shall provide for and pay the
298.12 cost of an independent annual audit of its official books and
298.13 records by the state auditor or a public accountant authorized
298.14 to perform that function under Minnesota Statutes, chapter 6.
298.15 Sec. 35. [SERVICE CONTRACTS WITH GOVERNMENTAL ENTITIES
298.16 OUTSIDE THE JURISDICTION OF THE BOARD.]
298.17 (a) The board may contract with the United States or any
298.18 agency of the federal government, any state or its agency, or
298.19 any municipal or public corporation, governmental subdivision or
298.20 agency or political subdivision in any state, outside the
298.21 jurisdiction of the board, for furnishing services to those
298.22 entities, including but not limited to planning for and the
298.23 acquisition, betterment, operation, administration, and
298.24 maintenance of any or all interceptors, treatment works, and
298.25 local water and sanitary sewer facilities. The board may
298.26 include as one of the terms of the contract that the entity must
298.27 pay to the board an amount agreed upon as a reasonable estimate
298.28 of the proportionate share properly allocable to the entity of
298.29 costs of acquisition, betterment, and debt service previously
298.30 allocated in the district. When payments are made by entities
298.31 to the board, they must be applied in reduction of the total
298.32 amount of costs thereafter allocated in the district, on an
298.33 equitable basis as the board deems to be in the best interests
298.34 of the district, applying so far as practicable and appropriate
298.35 the criteria set forth in section 29, subdivision 2. A
298.36 municipality in the state of Minnesota may enter into a contract
299.1 and perform all acts and things required as a condition or
299.2 consideration therefor consistent with the purposes of sections
299.3 20 to 38, whether or not included among the powers otherwise
299.4 granted to the municipality by law or charter.
299.5 (b) The board shall contract with a qualified entity to
299.6 make necessary inspections on the district facilities, and to
299.7 otherwise process or assist in processing any of the work of the
299.8 district.
299.9 Sec. 36. [CONTRACTS FOR CONSTRUCTION, MATERIALS, SUPPLIES,
299.10 AND EQUIPMENT.]
299.11 When the board orders a project involving the acquisition
299.12 or betterment of a part of the district disposal system, it
299.13 shall cause plans and specifications of the project to be made,
299.14 or if previously made, to be modified, if necessary, and to be
299.15 approved by the agency if required, and after any required
299.16 approval by the agency, one or more contracts for work and
299.17 materials called for by the plans and specification may be
299.18 awarded as provided in Minnesota Statutes, section 471.345.
299.19 Sec. 37. [PROPERTY EXEMPT FROM TAXATION.]
299.20 Any properties, real or personal, owned, leased,
299.21 controlled, used, or occupied by the water and sanitary sewer
299.22 board for any purpose under sections 20 to 38 are declared to be
299.23 acquired, owned, leased, controlled, used, and occupied for
299.24 public, governmental, and municipal purposes, and are exempt
299.25 from taxation by the state or any political subdivision of the
299.26 state, provided that the properties are subject to special
299.27 assessments levied by a political subdivision for a local
299.28 improvement in amounts proportionate to and not exceeding the
299.29 special benefit received by the properties from the
299.30 improvement. No possible use of any properties in any manner
299.31 different from their use as part of a disposal system at the
299.32 time may be considered in determining the special benefit
299.33 received by the properties. All assessments are subject to
299.34 final approval by the board, whose determination of the benefits
299.35 is conclusive upon the political subdivision levying the
299.36 assessment.
300.1 Sec. 38. [RELATION TO EXISTING LAWS.]
300.2 The provisions of sections 20 to 38 must be given full
300.3 effect notwithstanding the provisions of any law or charter
300.4 inconsistent with sections 20 to 38. The powers conferred on
300.5 the board under sections 20 to 38 do not in any way diminish or
300.6 supersede the powers conferred on the agency by Minnesota
300.7 Statutes, chapters 115 to 116.
300.8 Sec. 39. [EFFECTIVE DATE.]
300.9 Sections 1 to 19 are effective the day after a certificate
300.10 of approval under Minnesota Statutes, section 645.021,
300.11 subdivision 3, is filed by the last of the four local
300.12 governmental units subject to sections 1 to 19.
300.13 Sections 20 to 38 are effective as to the city and the town
300.14 of Finlayson separately the day after the certificate of
300.15 approval of the governing body of each is filed as provided in
300.16 Minnesota Statutes, section 645.021, subdivision 3.
300.17 ARTICLE 15
300.18 AUTOMATIC REBATE IN ENACTED BUDGET
300.19 Section 1. [16A.1522] [REBATE REQUIREMENTS.]
300.20 Subdivision 1. [FORECAST.] If, on the basis of a forecast
300.21 of general fund revenues and expenditures in November of an
300.22 even-numbered year or February of an odd-numbered year, the
300.23 commissioner projects a positive unrestricted budgetary general
300.24 fund balance at the close of the biennium that exceeds one-half
300.25 of one percent of total general fund biennial revenues, the
300.26 commissioner shall designate the entire balance as available for
300.27 rebate to the taxpayers of this state. In forecasting,
300.28 projecting, or designating the unrestricted budgetary general
300.29 fund balance or general fund biennial revenue under this
300.30 section, the commissioner shall not include any balance or
300.31 revenue attributable to settlement payments received after July
300.32 1, 1998, and before July 1, 2001, as defined in Section IIB of
300.33 the settlement document, filed May 18, 1998, in State v. Philip
300.34 Morris, Inc., No. C1-94-8565 (Minnesota District Court, Second
300.35 Judicial District).
300.36 Subd. 2. [PLAN.] If the commissioner designates an amount
301.1 for rebate in either forecast, the governor shall present a plan
301.2 to the legislature for rebating that amount. The plan must
301.3 provide for payments to begin no later than August 15 of the
301.4 odd-numbered year. By April 15 of each odd-numbered year, the
301.5 legislature shall enact, modify, or reject the plan presented by
301.6 the governor.
301.7 Subd. 3. [CERTIFICATION.] By July 15 of each odd-numbered
301.8 year, based on a preliminary analysis of the general fund
301.9 balance at the end of the fiscal year June 30, the commissioner
301.10 of finance shall certify to the commissioner of revenue the
301.11 amount available for rebate.
301.12 Subd. 4. [TRANSFER TO TAX RELIEF ACCOUNT.] Any positive
301.13 unrestricted budgetary general fund balance on June 30 of an
301.14 odd-numbered year is appropriated to the commissioner for
301.15 transfer to the tax relief account.
301.16 Subd. 5. [APPROPRIATION.] A sum sufficient to pay any
301.17 rebate due under the plan enacted under subdivision 2 is
301.18 appropriated from the general fund to the commissioner of
301.19 revenue.
301.20 Sec. 2. [ABOLISHING TAX REFORM AND REDUCTION ACCOUNT.]
301.21 The tax reform and reduction account created in Laws 1998,
301.22 chapter 389, article 9, section 2, subdivision 2, clause (2), is
301.23 abolished. The balance in the account shall revert to the
301.24 unrestricted general fund balance.
301.25 Sec. 3. [EFFECTIVE DATE.]
301.26 Section 1 is effective September 1, 1999. Section 2 is
301.27 effective the day following final enactment.
301.28 ARTICLE 16
301.29 MISCELLANEOUS
301.30 Section 1. Minnesota Statutes 1998, section 3.986,
301.31 subdivision 2, is amended to read:
301.32 Subd. 2. [LOCAL FISCAL IMPACT.] (a) "Local fiscal impact"
301.33 means increased or decreased costs or revenues that a political
301.34 subdivision would incur as a result of a law enacted after June
301.35 30, 1997, or rule proposed after December 31, 1998 1999:
301.36 (1) that mandates a new program, eliminates an existing
302.1 mandated program, requires an increased level of service of an
302.2 existing program, or permits a decreased level of service in an
302.3 existing mandated program;
302.4 (2) that implements or interprets federal law and, by its
302.5 implementation or interpretation, increases or decreases program
302.6 or service levels beyond the level required by the federal law;
302.7 (3) that implements or interprets a statute or amendment
302.8 adopted or enacted pursuant to the approval of a statewide
302.9 ballot measure by the voters and, by its implementation or
302.10 interpretation, increases or decreases program or service levels
302.11 beyond the levels required by the ballot measure;
302.12 (4) that removes an option previously available to
302.13 political subdivisions, or adds an option previously unavailable
302.14 to political subdivisions, thus requiring higher program or
302.15 service levels or permitting lower program or service levels, or
302.16 prohibits a specific activity and so forces political
302.17 subdivisions to use a more costly alternative to provide a
302.18 mandated program or service;
302.19 (5) that requires that an existing program or service be
302.20 provided in a shorter time period and thus increases the cost of
302.21 the program or service, or permits an existing mandated program
302.22 or service to be provided in a longer time period, thus
302.23 permitting a decrease in the cost of the program or service;
302.24 (6) that adds new requirements to an existing optional
302.25 program or service and thus increases the cost of the program or
302.26 service because the political subdivisions have no reasonable
302.27 alternative other than to continue the optional program;
302.28 (7) that affects local revenue collections by changes in
302.29 property or sales and use tax exemptions;
302.30 (8) that requires costs previously incurred at local option
302.31 that have subsequently been mandated by the state; or
302.32 (9) that requires payment of a new fee or increases the
302.33 amount of an existing fee, or permits the elimination or
302.34 decrease of an existing fee mandated by the state.
302.35 (b) When state law is intended to achieve compliance with
302.36 federal law or court orders, state mandates shall be determined
303.1 as follows:
303.2 (1) if the federal law or court order is discretionary, the
303.3 state law is a state mandate;
303.4 (2) if the state law exceeds what is required by the
303.5 federal law or court order, only the provisions of the state law
303.6 that exceed the federal requirements are a state mandate; and
303.7 (3) if the state law does not exceed what is required by
303.8 the federal statute or regulation or court order, the state law
303.9 is not a state mandate.
303.10 Sec. 2. Minnesota Statutes 1998, section 3.987,
303.11 subdivision 1, is amended to read:
303.12 Subdivision 1. [LOCAL IMPACT NOTES.] The commissioner of
303.13 finance shall coordinate the development of a local impact note
303.14 for any proposed legislation introduced after June 30, 1997, or
303.15 any rule proposed after December 31, 1998 1999, upon request of
303.16 the chair or the ranking minority member of either legislative
303.17 tax committee. Upon receipt of a request to prepare a local
303.18 impact note, the commissioner must notify the authors of the
303.19 proposed legislation or, for an administrative rule, the head of
303.20 the relevant executive agency or department, that the request
303.21 has been made. The local impact note must be made available to
303.22 the public upon request. If the action is among the exceptions
303.23 listed in section 3.988, a local impact note need not be
303.24 requested nor prepared. The commissioner shall make a
303.25 reasonable and timely estimate of the local fiscal impact on
303.26 each type of political subdivision that would result from the
303.27 proposed legislation. The commissioner of finance may require
303.28 any political subdivision or the commissioner of an
303.29 administrative agency of the state to supply in a timely manner
303.30 any information determined to be necessary to determine local
303.31 fiscal impact. The political subdivision, its representative
303.32 association, or commissioner shall convey the requested
303.33 information to the commissioner of finance with a signed
303.34 statement to the effect that the information is accurate and
303.35 complete to the best of its ability. The political subdivision,
303.36 its representative association, or commissioner, when requested,
304.1 shall update its determination of local fiscal impact based on
304.2 actual cost or revenue figures, improved estimates, or both.
304.3 Upon completion of the note, the commissioner must provide a
304.4 copy to the authors of the proposed legislation or, for an
304.5 administrative rule, to the head of the relevant executive
304.6 agency or department.
304.7 Sec. 3. [16A.77] [TOBACCO SETTLEMENT FUND.]
304.8 (a) A tobacco settlement fund is established in the state
304.9 treasury. Amounts in the fund are available only for purposes
304.10 authorized by appropriation by the legislature. The governor
304.11 shall make recommendations to the legislature regarding use of
304.12 the money in the fund.
304.13 (b) The commissioner of finance shall credit all settlement
304.14 payments received after July 1, 1998, and before July 1, 2001,
304.15 as defined in Section IIB of the settlement document, filed May
304.16 18, 1998, in the State of Minnesota et al. vs. Philip Morris et
304.17 al., to the tobacco settlement fund. All other payments to the
304.18 state resulting from the specified litigation shall be credited
304.19 to the general fund.
304.20 Sec. 4. Minnesota Statutes 1998, section 270.07,
304.21 subdivision 1, is amended to read:
304.22 Subdivision 1. [POWERS OF COMMISSIONER; APPLICATION FOR
304.23 ABATEMENT; ORDERS.] (a) The commissioner of revenue shall
304.24 prescribe the form of all blanks and books required under this
304.25 chapter and shall hear and determine all matters of grievance
304.26 relating to taxation. Except for matters delegated to the
304.27 various boards of county commissioners under section 375.192,
304.28 and except as otherwise provided by law, the commissioner shall
304.29 have power to grant such reduction or abatement of net tax
304.30 capacities or taxes and of any costs, penalties or interest
304.31 thereon as the commissioner may deem just and equitable, and to
304.32 order the refundment, in whole or in part, of any taxes, costs,
304.33 penalties or interest thereon which have been erroneously or
304.34 unjustly paid. Application therefor shall be submitted with a
304.35 statement of facts in the case and the favorable recommendation
304.36 of the county board or of the board of abatement of any city
305.1 where any such board exists, and the county auditor of the
305.2 county wherein such tax was levied or paid. In the case of taxes
305.3 other than gross earnings taxes, the order may be made only on
305.4 application and approval as provided in this paragraph. No
305.5 reduction, abatement, or refundment of any special assessments
305.6 made or levied by any municipality for local improvements shall
305.7 be made unless it is also approved by the board of review or
305.8 similar taxing authority of such municipality.
305.9 (b) The commissioner has the power to grant reductions or
305.10 abatements of gross earnings tax. An application for reduction
305.11 of gross earnings taxes may be made directly to the commissioner
305.12 without the favorable action of the county board and county
305.13 auditor. The commissioner shall direct that any gross earnings
305.14 taxes that may have been erroneously or unjustly paid be applied
305.15 against unpaid taxes due from the applicant.
305.16 (c) The commissioner shall forward to the county auditor a
305.17 copy of the order made by the commissioner in all cases in which
305.18 the approval of the county board is required.
305.19 (d) The commissioner may refer any question that may arise
305.20 in reference to the true construction of this chapter to the
305.21 attorney general, and the decision thereon shall be in force and
305.22 effect until annulled by the judgment of a court of competent
305.23 jurisdiction.
305.24 (e) The commissioner may by written order abate, reduce, or
305.25 refund any penalty or interest imposed by any law relating to
305.26 taxation, if in the commissioner's opinion the failure to timely
305.27 pay the tax or failure to timely file the return is due to
305.28 reasonable cause, or if the taxpayer is located in a
305.29 presidentially declared disaster area. The order shall be made
305.30 on application of the taxpayer to the commissioner.
305.31 (f) If an order issued under this subdivision is for an
305.32 abatement, reduction, or refund of over $5,000, it shall be
305.33 valid only if approved in writing by the attorney general.
305.34 (g) (f) An appeal may not be taken to the tax court from
305.35 any order of the commissioner of revenue made in the exercise of
305.36 the discretionary authority granted in paragraph (a) with
306.1 respect to the reduction or abatement of real or personal
306.2 property taxes in response to a taxpayer's application for an
306.3 abatement, reduction, or refund of taxes, net tax capacities,
306.4 costs, penalties, or interest.
306.5 Sec. 5. Minnesota Statutes 1998, section 270.65, is
306.6 amended to read:
306.7 270.65 [DATE OF ASSESSMENT; DEFINITION.]
306.8 For purposes of taxes administered by the commissioner, the
306.9 term "date of assessment" means the date a return was filed or
306.10 the date a return should have been filed, whichever is later;
306.11 or, in the case of taxes determined by the commissioner, "date
306.12 of assessment" means the date of the order assessing taxes; or,
306.13 in the case of an amended return filed by the taxpayer, the
306.14 assessment date is the date the return was filed with the
306.15 commissioner; or, in the case of a check from a taxpayer that is
306.16 dishonored and results in an erroneous refund being given to the
306.17 taxpayer, remittance of the check is deemed to be an assessment
306.18 and the "date of assessment" is the date the check was received
306.19 by the commissioner.
306.20 Sec. 6. Minnesota Statutes 1998, section 270.67, is
306.21 amended by adding a subdivision to read:
306.22 Subd. 4. [OFFER-IN-COMPROMISE AND INSTALLMENT PAYMENT
306.23 PROGRAM.] (a) In implementing the authority provided in
306.24 subdivision 1 or in section 8.30 to accept offers of installment
306.25 payments or offers-in-compromise of tax liabilities, the
306.26 commissioner of revenue shall prescribe guidelines for employees
306.27 of the department of revenue to determine whether an
306.28 offer-in-compromise or an offer to make installment payments is
306.29 adequate and should be accepted to resolve a dispute. In
306.30 prescribing the guidelines, the commissioner shall develop and
306.31 publish schedules of national and local allowances designed to
306.32 provide that taxpayers entering into a compromise or payment
306.33 agreement have an adequate means to provide for basic living
306.34 expenses. The guidelines must provide that the taxpayer's
306.35 ownership interest in a motor vehicle, to the extent of the
306.36 value allowed in section 550.37, will not be considered as an
307.1 asset; in the case of an offer related to a joint tax liability
307.2 of spouses, that value of two motor vehicles must be excluded.
307.3 The guidelines must provide that employees of the department
307.4 shall determine, on the basis of the facts and circumstances of
307.5 each taxpayer, whether the use of the schedules is appropriate
307.6 and that employees must not use the schedules to the extent the
307.7 use would result in the taxpayer not having adequate means to
307.8 provide for basic living expenses. The guidelines must provide
307.9 that:
307.10 (1) an employee of the department shall not reject an
307.11 offer-in-compromise or an offer to make installment payments
307.12 from a low-income taxpayer solely on the basis of the amount of
307.13 the offer; and
307.14 (2) in the case of an offer-in-compromise which relates
307.15 only to issues of liability of the taxpayer:
307.16 (i) the offer must not be rejected solely because the
307.17 commissioner is unable to locate the taxpayer's return or return
307.18 information for verification of the liability; and
307.19 (ii) the taxpayer shall not be required to provide an
307.20 audited, reviewed, or compiled financial statement.
307.21 (b) The commissioner shall establish procedures:
307.22 (1) that require presentation of a counteroffer or a
307.23 written rejection of the offer by the commissioner if the amount
307.24 offered by the taxpayer in an offer-in-compromise or an offer to
307.25 make installment payments is not accepted by the commissioner;
307.26 (2) for an administrative review of any written rejection
307.27 of a proposed offer-in-compromise or installment agreement made
307.28 by a taxpayer under this section before the rejection is
307.29 communicated to the taxpayer;
307.30 (3) that allow a taxpayer to request reconsideration of any
307.31 written rejection of the offer or agreement to the commissioner
307.32 of revenue to determine whether the rejection is reasonable and
307.33 appropriate under the circumstances; and
307.34 (4) that provide for notification to the taxpayer when an
307.35 offer-in-compromise has been accepted, and issuance of
307.36 certificates of release of any liens imposed under section
308.1 270.69 related to the liability which is the subject of the
308.2 compromise.
308.3 Sec. 7. Minnesota Statutes 1998, section 270.78, is
308.4 amended to read:
308.5 270.78 [PENALTY FOR FAILURE TO MAKE PAYMENT BY ELECTRONIC
308.6 FUNDS TRANSFER.]
308.7 (a) In addition to other applicable penalties imposed by
308.8 law, after notification from the commissioner of revenue to the
308.9 taxpayer that payments for a tax administered by the
308.10 commissioner are required to be made by means of electronic
308.11 funds transfer, and the payments are remitted by some other
308.12 means, there is a penalty in the amount of five percent of each
308.13 payment that should have been remitted electronically. The
308.14 penalty can be abated under the abatement procedures prescribed
308.15 in section 270.07, subdivision 6, if the failure to remit the
308.16 payment electronically is due to reasonable cause. The penalty
308.17 bears interest at the rate specified in section 270.75 from the
308.18 due date of the payment of the tax to the date of payment of the
308.19 penalty.
308.20 (b) The penalty under paragraph (a) does not apply if the
308.21 taxpayer pays by other means the amount due at least three
308.22 business days before the date the payment is due. This
308.23 paragraph does not apply after December 31, 1997.
308.24 Sec. 8. Minnesota Statutes 1998, section 270A.03,
308.25 subdivision 2, is amended to read:
308.26 Subd. 2. [CLAIMANT AGENCY.] "Claimant agency" means any
308.27 state agency, as defined by section 14.02, subdivision 2, the
308.28 regents of the University of Minnesota, any district court of
308.29 the state, any county, any statutory or home rule charter city
308.30 presenting a claim for a municipal hospital or a public library,
308.31 a hospital district, a private nonprofit hospital that leases
308.32 its building from the county in which it is located, any public
308.33 agency responsible for child support enforcement, any public
308.34 agency responsible for the collection of court-ordered
308.35 restitution, and any public agency established by general or
308.36 special law that is responsible for the administration of a
309.1 low-income housing program.
309.2 Sec. 9. Minnesota Statutes 1998, section 270A.07,
309.3 subdivision 2, is amended to read:
309.4 Subd. 2. [SETOFF PROCEDURES.] (a) The commissioner, upon
309.5 receipt of notification, shall initiate procedures to detect any
309.6 refunds otherwise payable to the debtor. When the commissioner
309.7 determines that a refund is due to a debtor whose debt was
309.8 submitted by a claimant agency, the commissioner shall first
309.9 deduct the fee in subdivision 1 and then remit the refund or the
309.10 amount claimed, whichever is less, to the agency. In
309.11 transferring or remitting moneys to the claimant agency, the
309.12 commissioner shall provide information indicating the amount
309.13 applied against each debtor's obligation and the debtor's
309.14 address listed on the tax return.
309.15 (b) The commissioner shall remit to the debtor the amount
309.16 of any refund due in excess of the debt submitted for setoff by
309.17 the claimant agency. Notice of the amount setoff and address of
309.18 the claimant agency shall accompany any disbursement to the
309.19 debtor of the balance of a refund. The notice shall also advise
309.20 the debtor of the right to contest the validity of the claim,
309.21 other than a claim based upon child support under section
309.22 518.171, 518.54, 518.551, or chapter 518C at a hearing, subject
309.23 to the restrictions in this paragraph. The debtor must assert
309.24 this right by written request to the claimant agency, which
309.25 request the claimant agency must receive within 45 days of the
309.26 date of the notice. This right does not apply to (1) issues
309.27 relating to the validity of the claim that have been previously
309.28 raised at a hearing under this section or section 270A.09; (2)
309.29 issues relating to the validity of the claim that were not
309.30 timely raised by the debtor under section 270A.08, subdivision
309.31 2; or (3) issues relating to the validity of the claim that have
309.32 been previously raised at a hearing conducted under rules
309.33 promulgated by the United States Department of Housing and Urban
309.34 Development or any public agency that is responsible for the
309.35 administration of a low-income housing program, or that were not
309.36 timely raised by the debtor under those rules; or (4) issues
310.1 relating to the validity of the claim for which a hearing is
310.2 discretionary under section 270A.09.
310.3 Sec. 10. Minnesota Statutes 1998, section 270A.08,
310.4 subdivision 2, is amended to read:
310.5 Subd. 2. [REQUIREMENTS OF NOTICE.] (a) This written notice
310.6 shall clearly and with specificity set forth the basis for the
310.7 claim to the refund including the name of the benefit program
310.8 involved if the debt arises from a public assistance grant and
310.9 the dates on which the debt was incurred and, further, shall
310.10 advise the debtor of the claimant agency's intention to request
310.11 setoff of the refund against the debt.
310.12 (b) Except as provided in paragraph (c), the notice will
310.13 also advise the debtor that the debt can be setoff against a
310.14 refund unless the time period allowed by law for collecting the
310.15 debt has expired, and will advise the debtor of the right to
310.16 contest the validity of the claim at a hearing. The debtor must
310.17 assert this right by written request to the claimant agency,
310.18 which request the agency must receive within 45 days of the
310.19 mailing date of the original notice or of the corrected notice,
310.20 as required by subdivision 1. If the debtor has not received
310.21 the notice, the 45 days shall not commence until the debtor has
310.22 received actual notice. The debtor shall have the burden of
310.23 showing no notice and shall be entitled to a hearing on the
310.24 issue of notice as well as on the merits.
310.25 (c) If the claimant agency is a public agency that is
310.26 responsible for the administration of a low-income housing
310.27 program, the notice will also advise the debtor that the debt
310.28 can be set off against a refund unless the time period allowed
310.29 by law for collecting the debt has expired. If the public
310.30 agency has provided the debtor with the opportunity to contest
310.31 the issues relating to the validity of the claim at a hearing
310.32 under rules promulgated by the United States Department of
310.33 Housing and Urban Development or the public agency, the notice
310.34 will advise the debtor of that fact and advise the debtor that
310.35 no further hearing may be requested by the debtor to contest the
310.36 validity of the claim.
311.1 Sec. 11. Minnesota Statutes 1998, section 287.01,
311.2 subdivision 3, as amended by Laws 1999, chapter 31, section 1,
311.3 is amended to read:
311.4 Subd. 3. [DEBT.] "Debt" means the principal amount of an
311.5 obligation to pay money or to perform or refrain from performing
311.6 an act that is secured in whole or in part by a mortgage of an
311.7 interest in real property.
311.8 Sec. 12. Minnesota Statutes 1998, section 287.05,
311.9 subdivision 1, as amended by Laws 1999, chapter 31, section 5,
311.10 is amended to read:
311.11 Subdivision 1. [REAL PROPERTY OUTSIDE MINNESOTA.] (a) When
311.12 a multistate mortgage is intended to secure only a portion of a
311.13 debt amount recited or referred to in the mortgage, the mortgage
311.14 may contain the following statement, or its equivalent, on the
311.15 first page: "Notwithstanding anything to the contrary herein,
311.16 enforcement of this mortgage in Minnesota is limited to a debt
311.17 amount of $....... under chapter 287 of Minnesota Statutes." In
311.18 such case, the tax shall be imposed based only on the amount of
311.19 debt so stated to be secured by real property located in this
311.20 state; and, the effect of the mortgage, or any amendment or
311.21 extension, as evidence in any court in this state, or as notice
311.22 for any purpose in this state, shall be limited to the amount
311.23 contained in the statement and for which the tax has been
311.24 paid and additional amounts for accrued interest and advances
311.25 not subject to tax under section 287.035 or 287.05, subdivision
311.26 4.
311.27 (b) All multistate mortgages not taxed under paragraph (a)
311.28 shall be taxed under sections 287.01 to 287.13 as if the real
311.29 property identified in the mortgage secures payment of that
311.30 portion of the maximum debt amount referred to, or incorporated
311.31 by reference, in the mortgage that is equal to a fraction the
311.32 numerator of which is the value of the real property described
311.33 in the mortgage that is located in this state and the
311.34 denominator of which is the value of all the real property
311.35 described in the mortgage.
311.36 Sec. 13. Minnesota Statutes 1998, section 287.05,
312.1 subdivision 1a, as amended by Laws 1999, chapter 31, section 5,
312.2 is amended to read:
312.3 Subd. 1a. [REAL PROPERTY IN THIS STATE SECURES PORTION OF
312.4 DEBT.] (a) When the real property identified in a mortgage is
312.5 located entirely in this state and is intended to secure only a
312.6 portion of a debt amount recited or referred to in the mortgage,
312.7 the mortgage may contain the following statement, or its
312.8 equivalent, on the first page: "Notwithstanding anything to the
312.9 contrary herein, enforcement of this mortgage is limited to a
312.10 debt amount of $....... under chapter 287 of Minnesota
312.11 Statutes." In such case, the tax shall be imposed based only on
312.12 the amount of debt so stated to be secured by real property;
312.13 and, the effect of the mortgage, or any amendment or extension,
312.14 as evidence in any court in this state, or as notice for any
312.15 purpose in this state, shall be limited to the amount contained
312.16 in the statement and for which the tax has been paid and
312.17 additional amounts for accrued interest and advances not subject
312.18 to tax under section 287.035 or 287.05, subdivision 4.
312.19 (b) All mortgages that are not multistate mortgages and
312.20 that are not taxed under paragraph (a) shall be taxed under
312.21 sections 287.01 to 287.13 as if the real property identified in
312.22 the mortgage secures payment of the maximum debt amount referred
312.23 to, or incorporated by reference, in the mortgage.
312.24 Sec. 14. Minnesota Statutes 1998, section 289A.31,
312.25 subdivision 2, is amended to read:
312.26 Subd. 2. [JOINT INCOME TAX RETURNS.] (a) If a joint income
312.27 tax return is made by a husband and wife, the liability for the
312.28 tax is joint and several. A spouse who is relieved of qualifies
312.29 for relief from a liability attributable to a substantial an
312.30 underpayment under section 6013(e) 6015(b) of the Internal
312.31 Revenue Code is also relieved of the state income tax liability
312.32 on the substantial underpayment.
312.33 (b) In the case of individuals who were a husband and wife
312.34 prior to the dissolution of their marriage or their legal
312.35 separation, or prior to the death of one of the individuals, for
312.36 tax liabilities reported on a joint or combined return, the
313.1 liability of each person is limited to the proportion of the tax
313.2 due on the return that equals that person's proportion of the
313.3 total tax due if the husband and wife filed separate returns for
313.4 the taxable year. This provision is effective only when the
313.5 commissioner receives written notice of the marriage
313.6 dissolution, legal separation, or death of a spouse from the
313.7 husband or wife. No refund may be claimed by an ex-spouse,
313.8 legally separated or widowed spouse for any taxes paid more than
313.9 60 days before receipt by the commissioner of the written notice.
313.10 Sec. 15. Minnesota Statutes 1998, section 289A.40,
313.11 subdivision 1, is amended to read:
313.12 Subdivision 1. [TIME LIMIT; GENERALLY.] Unless otherwise
313.13 provided in this chapter, a claim for a refund of an overpayment
313.14 of state tax must be filed within 3-1/2 years from the date
313.15 prescribed for filing the return, plus any extension of time
313.16 granted for filing the return, but only if filed within the
313.17 extended time, or one year from the date of an order assessing
313.18 tax under section 289A.37, subdivision 1, or an order
313.19 determining an appeal under section 289A.65, subdivision 8, or
313.20 one year from the date of a return made by the commissioner
313.21 under section 289A.35, upon payment in full of the tax,
313.22 penalties, and interest shown on the order or return made by the
313.23 commissioner, whichever period expires later. Claims for
313.24 refund, except for taxes under chapter 297A, filed after the
313.25 3-1/2 year period but within the one-year period are limited to
313.26 the amount of the tax, penalties, and interest on the order or
313.27 return made by the commissioner and to issues determined by the
313.28 order or return made by the commissioner.
313.29 In the case of assessments under section 289A.38,
313.30 subdivision 5 or 6, claims for refund under chapter 297A filed
313.31 after the 3-1/2 year period but within the one-year period are
313.32 limited to the amount of the tax, penalties, and interest on the
313.33 order or return made by the commissioner that are due for the
313.34 period before the 3-1/2 year period.
313.35 Sec. 16. Minnesota Statutes 1998, section 289A.40,
313.36 subdivision 1a, is amended to read:
314.1 Subd. 1a. [INDIVIDUAL INCOME TAXES; REASONABLE
314.2 CAUSE SUSPENSION DURING PERIOD OF DISABILITY.] If the
314.3 taxpayer establishes reasonable cause for failing to timely file
314.4 the return required by section 289A.08, subdivision 1, files the
314.5 required return within ten years of the date specified in
314.6 section 289A.18, subdivision 1, and independently verifies that
314.7 an overpayment has been made, the commissioner shall grant a
314.8 refund claimed by the original return, notwithstanding the
314.9 limitations of subdivision 1 meets the requirements for
314.10 suspending the running of the time period to file a claim for
314.11 refund under section 6511(h) of the Internal Revenue Code, the
314.12 time period in subdivision 1 for the taxpayer to file a claim
314.13 for an individual income tax refund is suspended.
314.14 Sec. 17. Minnesota Statutes 1998, section 289A.50, is
314.15 amended by adding a subdivision to read:
314.16 Subd. 1a. [REFUND FORM.] On or before January 1, 2000, the
314.17 commissioner of revenue shall prepare and make available to
314.18 taxpayers a form for filing claims for refund of taxes paid in
314.19 excess of the amount due. If the commissioner fails to prepare
314.20 a form under this subdivision by January 1, 2000, any claims for
314.21 refund made after January 1, 2000, and up to ten days after the
314.22 form is made available to taxpayers are deemed to be made in
314.23 compliance with the requirement of the form.
314.24 Sec. 18. Minnesota Statutes 1998, section 289A.50,
314.25 subdivision 7, is amended to read:
314.26 Subd. 7. [REMEDIES.] (a) If the taxpayer is notified by
314.27 the commissioner that the refund claim is denied in whole or in
314.28 part, the taxpayer may:
314.29 (1) file an administrative appeal as provided in section
314.30 289A.65, or an appeal with the tax court, within 60 days after
314.31 issuance of the commissioner's notice of denial; or
314.32 (2) file an action in the district court to recover the
314.33 refund.
314.34 (b) An action in the district court on a denied claim for
314.35 refund must be brought within 18 months of the date of the
314.36 denial of the claim by the commissioner.
315.1 (c) No action in the district court or the tax court shall
315.2 be brought within six months of the filing of the refund claim
315.3 unless the commissioner denies the claim within that period.
315.4 (d) If a taxpayer files a claim for refund and the
315.5 commissioner has not issued a denial of the claim, the taxpayer
315.6 may bring an action in the district court or the tax court at
315.7 any time after the expiration of six months of the time the
315.8 claim was filed, but within four years of the date that the
315.9 claim was filed.
315.10 (e) The commissioner and the taxpayer may agree to extend
315.11 the period for bringing an action in the district court.
315.12 (f) An action for refund of tax by the taxpayer must be
315.13 brought in the district court of the district in which lies the
315.14 county of the taxpayer's residence or principal place of
315.15 business. In the case of an estate or trust, the action must be
315.16 brought at the principal place of its administration. Any
315.17 action may be brought in the district court for Ramsey county.
315.18 Sec. 19. Minnesota Statutes 1998, section 289A.55,
315.19 subdivision 9, is amended to read:
315.20 Subd. 9. [INTEREST ON PENALTIES.] (a) A penalty imposed
315.21 under section 289A.60, subdivision 1, 2, 3, 4, 5, or 6, or 21
315.22 bears interest from the date the return or payment was required
315.23 to be filed or paid, including any extensions, to the date of
315.24 payment of the penalty.
315.25 (b) A penalty not included in paragraph (a) bears interest
315.26 only if it is not paid within ten days from the date of notice.
315.27 In that case interest is imposed from the date of notice to the
315.28 date of payment.
315.29 Sec. 20. Minnesota Statutes 1998, section 289A.60,
315.30 subdivision 3, is amended to read:
315.31 Subd. 3. [COMBINED PENALTIES.] When penalties are imposed
315.32 under subdivisions 1 and 2, except for the minimum penalty under
315.33 subdivision 2, the penalties imposed under both subdivisions
315.34 combined must not exceed 38 percent.
315.35 Sec. 21. Minnesota Statutes 1998, section 289A.60,
315.36 subdivision 21, is amended to read:
316.1 Subd. 21. [PENALTY FOR FAILURE TO MAKE PAYMENT BY
316.2 ELECTRONIC FUNDS TRANSFER.] (a) In addition to other applicable
316.3 penalties imposed by this section, after notification from the
316.4 commissioner to the taxpayer that payments are required to be
316.5 made by means of electronic funds transfer under section
316.6 289A.20, subdivision 2, paragraph (e), or 4, paragraph (d), or
316.7 289A.26, subdivision 2a, and the payments are remitted by some
316.8 other means, there is a penalty in the amount of five percent of
316.9 each payment that should have been remitted electronically. The
316.10 penalty can be abated under the abatement procedures prescribed
316.11 in section 270.07, subdivision 6, if the failure to remit the
316.12 payment electronically is due to reasonable cause.
316.13 (b) The penalty under paragraph (a) does not apply if the
316.14 taxpayer pays by other means the amount due at least three
316.15 business days before the date the payment is due. This
316.16 paragraph does not apply after December 31, 1997.
316.17 Sec. 22. Minnesota Statutes 1998, section 297A.15,
316.18 subdivision 5, is amended to read:
316.19 Subd. 5. [REFUND; APPROPRIATION.] Notwithstanding the
316.20 provisions of sections 297A.02, subdivision 5, and 297A.25,
316.21 subdivision 42, the tax on sales of capital equipment, and
316.22 replacement capital equipment, shall be imposed and collected as
316.23 if the rate under section 297A.02, subdivision 1, applied. Upon
316.24 application by the purchaser, on forms prescribed by the
316.25 commissioner, a refund equal to the reduction in the tax due as
316.26 a result of the application of the exemption under section
316.27 297A.25, subdivision 42, and the rate under section 297A.02,
316.28 subdivision 5, shall be paid to the purchaser. The application
316.29 must include sufficient information to permit the commissioner
316.30 to verify the sales tax paid for the project. The application
316.31 shall include information necessary for the commissioner
316.32 initially to verify that the purchases qualified as capital
316.33 equipment under section 297A.25, subdivision 42, or replacement
316.34 capital equipment under section 297A.01, subdivision 20. No
316.35 more than two applications for refunds may be filed under this
316.36 subdivision in a calendar year. Unless otherwise specifically
317.1 provided by this subdivision, the provisions of section sections
317.2 289A.40 and 289A.50 apply to the refunds payable under this
317.3 subdivision. There is annually appropriated to the commissioner
317.4 of revenue the amount required to make the refunds.
317.5 The amount to be refunded shall bear interest at the rate
317.6 in section 270.76 from the date the refund claim is filed with
317.7 the commissioner.
317.8 Sec. 23. Minnesota Statutes 1998, section 360.55, is
317.9 amended by adding a subdivision to read:
317.10 Subd. 8. [AGRICULTURAL AIRCRAFT.] Aircraft registered with
317.11 the Federal Aviation Administration as restricted category
317.12 aircraft used for agricultural purposes must be listed for
317.13 taxation and registration upon filing by the owner a sworn
317.14 affidavit with the commissioner. The affidavit must state:
317.15 (1) the name and address of the owner;
317.16 (2) the name and address of the person from whom purchased;
317.17 (3) the aircraft's make, year, model number, federal
317.18 registration number, and manufacturer's identification number;
317.19 and
317.20 (4) that the aircraft is owned and operated solely for
317.21 agricultural operations and purposes.
317.22 The owner shall file the affidavit and pay an annual fee
317.23 established under sections 360.511 to 360.67, which must not
317.24 exceed $500. Should the aircraft be operated other than for
317.25 agricultural purposes, the owner shall list the aircraft for
317.26 taxation and registration under sections 360.511 to 360.67. If
317.27 the aircraft is sold, the new owner shall list the aircraft for
317.28 taxation and registration under this subdivision or under
317.29 sections 360.511 to 360.67, as applicable.
317.30 Sec. 24. Minnesota Statutes 1998, section 414.11, is
317.31 amended to read:
317.32 414.11 [MUNICIPAL BOARD SUNSET.]
317.33 The municipal board shall terminate on December 31 June 1,
317.34 1999, and all of its authority and duties under this chapter
317.35 shall be transferred to the office of strategic and long-range
317.36 planning according to section 15.039, and any money remaining
318.1 available on that date of the amount appropriated to the
318.2 municipal board for fiscal year 2000 is transferred and
318.3 appropriated to the director of the office of strategic and
318.4 long-range planning to be used for the purposes of this chapter.
318.5 Sec. 25. [414.12] [DIRECTOR'S POWERS.]
318.6 Notwithstanding anything to the contrary in sections 414.01
318.7 to 414.11, the director of the office of strategic and
318.8 long-range planning, upon consultation with affected parties and
318.9 considering the procedures and principles established in
318.10 sections 414.01 to 414.11, and Laws 1997, chapter 202, article
318.11 4, sections 1 to 13, may require alternative dispute resolution
318.12 processes, including those provided in chapter 14, in the
318.13 execution of the office's duties under this chapter.
318.14 Sec. 26. Minnesota Statutes 1998, section 469.169,
318.15 subdivision 12, is amended to read:
318.16 Subd. 12. [ADDITIONAL ZONE ALLOCATIONS.] (a) In addition
318.17 to tax reductions authorized in subdivisions 7, 8, 9, 10, and
318.18 11, the commissioner shall allocate tax reductions to border
318.19 city enterprise zones located on the western border of the state.
318.20 The cumulative total amount of tax reductions for all years of
318.21 the program under sections 469.1731 to 469.1735, is limited to:
318.22 (1) for the city of Breckenridge, $394,000;
318.23 (2) for the city of Dilworth, $118,200;
318.24 (3) for the city of East Grand Forks, $788,000;
318.25 (4) for the city of Moorhead, $591,000; and
318.26 (5) for the city of Ortonville, $78,800.
318.27 Allocations made under this subdivision may be used for tax
318.28 reductions provided in section 469.1732 or 469.1734 or for
318.29 reimbursements under section 469.1735, subdivision 3, but only
318.30 if the municipality determines that the granting of the tax
318.31 reduction or offset is necessary to enable a business to expand
318.32 within a city or to attract a business to a city. Limitations
318.33 on allocations under subdivision 7 do not apply to this
318.34 allocation.
318.35 (b) The limit in the allocation in paragraph (a) for a
318.36 municipality may be waived by the commissioner if the
319.1 commissioner of revenue finds that the municipality must provide
319.2 an incentive under section 469.1732 or 469.1734 that, by itself
319.3 or when aggregated with all other tax reductions granted by the
319.4 municipality under those provisions, exceeds the municipality's
319.5 maximum allocation under paragraph (a), in order to obtain or
319.6 retain a business in the city that would not occur in the
319.7 municipality without the incentive. The limit may be waived
319.8 only if the commissioner finds that the business for which the
319.9 tax incentives are to be provided:
319.10 (1) requires a private capital investment of at least
319.11 $1,000,000 within the city;
319.12 (2) employs at least 25 new or additional full-time
319.13 equivalent employees within the city; and
319.14 (3) pays its employees at the location in the city wages
319.15 that, on the average, will exceed the average wage paid in the
319.16 county in which the municipality is located.
319.17 Sec. 27. Minnesota Statutes 1998, section 469.169, is
319.18 amended by adding a subdivision to read:
319.19 Subd. 14. [ADDITIONAL BORDER CITY ALLOCATIONS.] In
319.20 addition to tax reductions authorized in subdivisions 7 to 12,
319.21 the commissioner may allocate $1,500,000 for tax reductions to
319.22 border city enterprise zones in cities located on the western
319.23 border of the state. The commissioner shall make allocations to
319.24 zones in cities on the western border on a per capita basis.
319.25 Allocations made under this subdivision may be used for tax
319.26 reductions as provided in section 469.171, or other offsets of
319.27 taxes imposed on or remitted by businesses located in the
319.28 enterprise zone, but only if the municipality determines that
319.29 the granting of the tax reduction or offset is necessary in
319.30 order to retain a business within or attract a business to the
319.31 zone. Limitations on allocations under subdivision 7, do not
319.32 apply to this allocation.
319.33 Sec. 28. Minnesota Statutes 1998, section 469.1735, is
319.34 amended by adding a subdivision to read:
319.35 Subd. 4. [APPROPRIATION; WAIVERS.] An amount sufficient to
319.36 fund any tax reductions under a waiver made by the commissioner
320.1 under section 469.169, subdivision 12, paragraph (b), is
320.2 appropriated to the commissioner of revenue from the general
320.3 fund. This appropriation may not be deducted from the dollar
320.4 limits under this section or section 469.169 or 469.1734.
320.5 Sec. 29. Laws 1997, Second Special Session chapter 2,
320.6 section 6, is amended to read:
320.7 Sec. 6. TRADE AND ECONOMIC
320.8 DEVELOPMENT 8,200,000
320.9 Notwithstanding the requirement in
320.10 Minnesota Statutes, section 469.169,
320.11 subdivision 11, as added by Laws 1997,
320.12 chapter 231, article 16, section 20, to
320.13 base allocations to zones in cities on
320.14 the state's western border on a per
320.15 capita basis, $1,200,000 is a one-time
320.16 appropriation from the general fund to
320.17 the commissioner of trade and economic
320.18 development for border city enterprise
320.19 competitiveness grants under Minnesota
320.20 Statutes, sections 469.166 to 469.173.
320.21 Funds shall be allocated to communities
320.22 with significant business losses that
320.23 are at risk of losing business tax base
320.24 due to noncompetitiveness with North
320.25 Dakota and South Dakota and shall be
320.26 available to communities for locally
320.27 administered measures to retain their
320.28 job base. Allocations made under this
320.29 paragraph may be used for tax
320.30 reductions as provided in Minnesota
320.31 Statutes, section 469.171, or other
320.32 offsets of taxes imposed on or remitted
320.33 by businesses located in the enterprise
320.34 zone, but only if the municipality
320.35 determines that the granting of the tax
320.36 reduction or offset is necessary in
320.37 order to retain a business within or
320.38 attract a business to the zone.
320.39 Limitations on allocations under
320.40 Minnesota Statutes, section 469.169,
320.41 subdivision 7, do not apply to this
320.42 appropriation. Enterprise zones that
320.43 receive allocations under this
320.44 paragraph may continue in effect for
320.45 purposes of those allocations
320.46 through December 31, 1998 June 30, 1999.
320.47 $6,000,000 is a one-time appropriation
320.48 from the general fund to the Minnesota
320.49 investment fund for grants to local
320.50 units of government for locally
320.51 administered operating loan programs
320.52 for businesses directly and adversely
320.53 affected by the floods. Loan criteria
320.54 and requirements shall be locally
320.55 established with approval by the
320.56 department. For the purposes of this
320.57 appropriation, Minnesota Statutes,
320.58 sections 116J.8731, subdivisions 3, 4,
320.59 5, and 7, and 116J.991, are waived.
320.60 Businesses that receive grants or loans
320.61 from this appropriation shall set goals
320.62 for jobs retained and wages paid within
320.63 the area designated under Presidential
321.1 Declaration of Major Disaster, DR-1175.
321.2 $1,000,000 is a one-time appropriation
321.3 from the petroleum tank release cleanup
321.4 fund to the commissioner of trade and
321.5 economic development. Notwithstanding
321.6 Minnesota Statutes, section 115C.08,
321.7 subdivision 4, as amended by Laws 1997,
321.8 chapter 200, article 2, section 4,
321.9 these funds are to be used for grants
321.10 to buy out property substantially
321.11 damaged by a petroleum tank release.
321.12 Sec. 30. Laws 1999, chapter 112, section 1, subdivision 1,
321.13 is amended to read:
321.14 Subdivision 1. [DEFINITIONS.] (a) The definitions in this
321.15 subdivision apply to this section.
321.16 (b) "Acre" means an acre of effective agricultural use land
321.17 within the state of Minnesota as reported to the farm service
321.18 agency on form 156EZ for the purposes of this subdivision and
321.19 subdivisions 2 and 9.
321.20 (c) "Commissioner" means the commissioner of revenue.
321.21 (d) "Effective agricultural use land" means the land
321.22 suitable for growing an agricultural crop and excludes land
321.23 enrolled in the conservation reserve program established by
321.24 Minnesota Statutes, section 103F.515, or the water bank program
321.25 established by Minnesota Statutes, section 103F.601.
321.26 (e) "Farm" or "farm operation" means an agricultural
321.27 production operation with a unique farm number as reported on
321.28 form 156EZ to the farm service agency, which includes at least
321.29 40 acres of effective agricultural use land. "Farm" also
321.30 includes an agricultural production operation, which contains
321.31 less than 40 acres of effective agriculture use if the farm
321.32 operator operates another farm qualifying under this paragraph.
321.33 (f) "Farm operator" means a person who is identified as the
321.34 operator of a farm on form 156EZ filed with the farm service
321.35 agency.
321.36 (g) "Farm service agency" means the United States Farm
321.37 Service Agency.
321.38 (h) "Farmer" or "farmer at risk" means a person who
321.39 produces an agricultural crop or livestock and is reported to
321.40 the farm service agency as bearing a percentage of the risk for
322.1 the farm operation.
322.2 (i) "Livestock" means cattle, hogs, poultry, and sheep.
322.3 (j) "Livestock production facility" means a farm that has
322.4 produced at least $10,000 in sales of unprocessed livestock or
322.5 unprocessed dairy products as reported on schedule F or form
322.6 1065 or form 1120 or 1120S of the farmer's federal income tax
322.7 return for either taxable years beginning in calendar year 1997
322.8 or 1998.
322.9 (k) "Person" includes individuals, fiduciaries, estates,
322.10 trusts, partnerships, joint ventures, and corporations.
322.11 Sec. 31. Laws 1999, chapter 112, section 1, subdivision 3,
322.12 is amended to read:
322.13 Subd. 3. [LIVESTOCK PRODUCERS.] A farmer person who owns
322.14 or resides on property homesteaded under section 273.124,
322.15 subdivision 1, paragraph (c), and operates a livestock
322.16 production facility on 160 acres or less may elect the
322.17 agricultural property tax refund under subdivisions 4 to 8 in
322.18 lieu of the per acre payment under subdivision 2. To qualify,
322.19 the farmer person must apply for the refund as provided in
322.20 subdivisions 4 to 8. The 40 acre minimum farm size under
322.21 subdivision 1 does not apply to eligibility under subdivisions 4
322.22 to 8.
322.23 Sec. 32. Laws 1999, chapter 112, section 1, subdivision 4,
322.24 is amended to read:
322.25 Subd. 4. [REFUND.] The refund equals the full amount of
322.26 the property tax payment due and payable on May 15, 1999, on a
322.27 livestock production facility that is class 1b agricultural
322.28 homestead property or class 2a agricultural homestead property
322.29 as defined in Minnesota Statutes, section 273.13, excluding that
322.30 portion of the tax attributable to the house, garage, and
322.31 surrounding acre of land. If a portion of the property was
322.32 leased for the agricultural production year, the refund amount
322.33 shall be prorated so that only the portion of the property which
322.34 was not leased for the agricultural production year qualifies
322.35 for the refund reduced by $4 for each acre that was leased for
322.36 the agricultural production year.
323.1 Sec. 33. Laws 1999, chapter 112, section 1, subdivision 9,
323.2 is amended to read:
323.3 Subd. 9. [ALTERNATE QUALIFICATION.] (a) If an agricultural
323.4 production operation does not meet the definition of a farm
323.5 under subdivision 1 solely because (1) the farm operator had not
323.6 filed a form 156EZ with the farm service agency, (2) there was
323.7 an error in the farm service agency's records, or (3) an
323.8 operator operates more than one farm and the acres of effective
323.9 agricultural use land of each a farm is less than 40 acres, but
323.10 the combined acres of effective agricultural use land of all
323.11 land operated by that operator is at least 40 acres, the
323.12 commissioner may allow the farm operator to apply for payment
323.13 under subdivision 2 after providing such information as the
323.14 commissioner may require to determine the number of acres that
323.15 would be comparable to the effective agricultural use land
323.16 listed on form 156EZ.
323.17 (b) If the number of acres of effective agricultural use
323.18 land for crop year 1998 for a farm is greater than indicated in
323.19 the farm service agency's records, the commissioner may allow a
323.20 farm operator to apply for payment on the greater acreage after
323.21 providing such information as the commissioner may require.
323.22 (c) If a person who produced an agricultural crop or
323.23 livestock in 1998 and bore a portion of the risk for the farm
323.24 operation does not meet the definition of a farmer under
323.25 subdivision 1 solely because that information was not reported
323.26 to the farm service agency, or because there was an error in the
323.27 farm service agency's records, the commissioner may allow the
323.28 farmer to be included on an application for payment under
323.29 subdivision 2 after the farmer provides such information as the
323.30 commissioner may require to determine the farmer was at risk for
323.31 that farm.
323.32 Sec. 34. [COST ESTIMATES.]
323.33 Any waiver granted under Minnesota Statutes, section
323.34 469.169, subdivision 12, paragraph (b), must be reported within
323.35 60 days to the commissioner of finance and the chairs of the
323.36 house and senate tax committees.
324.1 Sec. 35. [CITY OF RICHFIELD; AIRPORT IMPACT ZONE;
324.2 FINANCING.]
324.3 Subdivision 1. [DESIGNATION OF AIRPORT IMPACT ZONE.] There
324.4 is established within the city of Richfield an airport impact
324.5 zone consisting of the real property described as follows:
324.6 commencing at the intersection of the north city limits with the
324.7 w'ly ROW line of trunk highway 77, thence south along the w'ly
324.8 ROW line of trunk highway 77 to the n'ly ROW line of interstate
324.9 highway 494, thence west along the n'ly ROW line of interstate
324.10 highway 494 to the center line of Bloomington Avenue, thence
324.11 north on the center line of Bloomington Avenue to the n'ly ROW
324.12 line of East 77th Street to a point 133.2 feet east of the e'ly
324.13 ROW line of Bloomington Avenue, thence north on a line parallel
324.14 with and 133.2 feet east of the e'ly ROW line of Bloomington
324.15 Avenue to the north city limits, thence east along the north
324.16 city limits to the point of beginning.
324.17 Subd. 2. [AIRPORT IMPACTS DEFINED.] The legislature finds
324.18 that:
324.19 (1) the area included within the airport impact zone
324.20 defined under this section will experience significant and
324.21 unique adverse environmental and socioeconomic impacts directly
324.22 associated with the operation of the Minneapolis-St. Paul
324.23 International Airport;
324.24 (2) whether funded directly by the metropolitan airports
324.25 commission or by other means, expenditures for mitigation of
324.26 those airport-created impacts involve an aspect of the airport's
324.27 capital and operating expenses and will be made for airport
324.28 purposes;
324.29 (3) appropriate measures to mitigate those adverse impacts
324.30 include but are not limited to housing replacement activities;
324.31 and
324.32 (4) the state legislature has authorized the expansion of
324.33 the Minneapolis-St. Paul International Airport in order to
324.34 accommodate the future economic growth of the state. The
324.35 environmental quality board has adopted findings that identify
324.36 the need to make land uses in the area identified in subdivision
325.1 1 compatible with airport uses.
325.2 Subd. 3. [METROPOLITAN AIRPORTS COMMISSION BONDS;
325.3 SECURITY.] The metropolitan airports commission shall issue and
325.4 sell its obligations in an aggregate principal amount not to
325.5 exceed $30,000,000, after deducting costs of issuance, discount,
325.6 and capitalized interest. The metropolitan airports commission
325.7 shall, not later than January 30, 2000, transfer $30,000,000 to
325.8 the city of Richfield to be used to finance the costs of land
325.9 and structure acquisition, demolition, relocation and site
325.10 clearance, and public improvements within the airport impact tax
325.11 zone established under subdivision 1, including, without
325.12 limitation, the following housing replacement activities
325.13 anywhere within the city: rehabilitation, acquisition,
325.14 demolition, relocation assistance, and relocation of existing
325.15 single-family or multifamily housing, and financing of new or
325.16 existing single-family or multifamily housing that replaces
325.17 housing units eliminated by redevelopment within the airport
325.18 impact zone.
325.19 Subd. 4. [TERMS.] The obligations must be secured by the
325.20 revenues and pledges from the metropolitan airports commission
325.21 in accordance with subdivision 5, and must be issued in
325.22 accordance with chapter 475, provided that no election is
325.23 required, net debt limits do not apply, and the obligations must
325.24 mature no later than 35 years from the date of issue of the
325.25 original obligations. The metropolitan airports commission may
325.26 issue obligations to refund any obligations issued under this
325.27 section, the principal amount of which shall not be included in
325.28 computing the limits on amount of obligations issuable by the
325.29 commission under this section.
325.30 Subd. 5. [SECURITY; METROPOLITAN AIRPORTS COMMISSION
325.31 PAYMENTS.] (a) Notwithstanding anything to the contrary in
325.32 Minnesota Statutes, sections 473.601 to 473.679, on or before
325.33 the due date of each principal and interest payment on
325.34 obligations issued under this section, the treasurer of the
325.35 metropolitan airports commission shall remit from any available
325.36 funds to the trustee or paying agent for the obligations an
326.1 amount sufficient for the payment, without further order from
326.2 the commission. The metropolitan airports commission shall be
326.3 obligated to the holders of obligations issued under this
326.4 section, to establish, revise from time to time, and collect
326.5 landing fees according to schedules such as to produce revenues,
326.6 together with other revenues not restricted by law or regulation
326.7 available to the metropolitan airport commission, at all times
326.8 sufficient to pay 105 percent of principal and interest on all
326.9 obligations issued under this section.
326.10 (b) Notwithstanding anything to the contrary in Minnesota
326.11 Statutes, sections 473.601 to 473.679, any obligations issued
326.12 under this section shall be further secured by the pledge of the
326.13 full faith and credit of the metropolitan airports commission,
326.14 which shall be obligated to levy upon all taxable property
326.15 within the metropolitan area a tax at the times and in the
326.16 amounts, if any, as may be required to provide funds sufficient
326.17 to pay all the obligations and interest thereon in the event
326.18 revenues pledged under paragraph (a), are insufficient for that
326.19 purpose. This tax, if ever required to be levied, shall not be
326.20 subject to any limitation of rate or amount.
326.21 (c) The pledges described in this section shall be made by
326.22 resolution of the metropolitan airports commission. The
326.23 security afforded by this section extends equally and ratably to
326.24 all bonds issued under this section and all bonds issued by the
326.25 metropolitan airports commission secured by similar pledges.
326.26 Subd. 6. [OBLIGATION DEFINED.] In subdivisions 1 to 5,
326.27 "obligation" has the meaning given in Minnesota Statutes,
326.28 section 475.51, subdivision 3. The term includes obligations
326.29 issued to refund prior obligations issued under this section.
326.30 Subd. 7. [COMPLIANCE WITH FEDERAL LAW; NO ADDITIONAL
326.31 COMMITMENTS.] (a) Nothing in this section shall require the
326.32 metropolitan airports commission to violate federal law or
326.33 regulation, including the Federal Aviation Administration
326.34 revenue diversion policy.
326.35 (b) If this section violates federal law or regulations,
326.36 including the Federal Aviation Administration revenue diversion
327.1 policy, the requirements imposed upon the metropolitan airports
327.2 commission under this section are terminated and shall not
327.3 become commitments of the state.
327.4 Subd. 8. [RELATIONSHIP TO REQUIREMENTS UNDER
327.5 AGREEMENT.] The requirements imposed upon the metropolitan
327.6 airports commission under this section are in addition to any
327.7 requirements imposed upon the commission under the
327.8 Richfield-metropolitan airports commission noise mitigation
327.9 agreement dated December 18, 1998.
327.10 Sec. 36. [EXTENSIONS FOR OPERATION ALLIED FORCE SERVICE
327.11 MEMBERS.]
327.12 The limitations of time provided by Minnesota Statutes,
327.13 chapter 289A relating to administration of taxes, chapter 290
327.14 relating to income taxes, chapter 271 relating to the tax court
327.15 for filing returns, paying taxes, claiming refunds, commencing
327.16 action thereon, appealing to the tax court from orders relating
327.17 to income taxes, and the filing of petitions under chapter 278,
327.18 and appealing to the Supreme Court from decisions of the tax
327.19 court relating to income taxes are extended, as provided in the
327.20 special rule for section 7508 of the Internal Revenue Code in
327.21 section 1, paragraph (c), of Public Law Number 106-21.
327.22 Sec. 37. [TRANSFER.]
327.23 The commissioner of finance shall transfer $2,000,000 from
327.24 the conservation fund under Minnesota Statutes, section 40A.151,
327.25 to the general fund on July 1, 1999.
327.26 Sec. 38. [APPROPRIATION.]
327.27 $143,000 is appropriated to the commissioner of revenue
327.28 from the general fund for the cost of administering this act.
327.29 This appropriation is for fiscal year 2000 and any unspent
327.30 amount may be carried over to fiscal year 2001. This is a
327.31 one-time appropriation and not part of the budget base for the
327.32 department.
327.33 Sec. 39. [REPEALER.]
327.34 Minnesota Statutes 1998, sections 297E.12, subdivision 3;
327.35 297F.19, subdivision 4; and 297G.18, subdivision 4, are repealed.
327.36 Sec. 40. [EFFECTIVE DATES.]
328.1 Sections 4, 21, 22, 25, and 29 to 34 are effective the day
328.2 following final enactment.
328.3 Section 5 is effective for checks received on or after the
328.4 day following final enactment.
328.5 Section 6 is effective the day following final enactment,
328.6 and applies to offers-in-compromise submitted after June 30,
328.7 1999.
328.8 Sections 7 and 19 are effective for payments due on or
328.9 after the day following final enactment.
328.10 Sections 8, 9, and 10 are effective for claims for setoff
328.11 submitted to the commissioner of revenue by claimant agencies
328.12 after June 30, 1999.
328.13 Sections 11 to 13 are effective for documents executed,
328.14 recorded, or registered after June 30, 1999.
328.15 Section 14, paragraph (a), is effective at the same time
328.16 that section 6015(b) of the Internal Revenue Code is effective
328.17 for federal tax purposes. Section 14, paragraph (b), is
328.18 effective for claims for innocent spouse relief, requests for
328.19 allocation of joint income tax liability, and taxes filed or
328.20 paid on or after the day following final enactment.
328.21 Section 15 is effective for orders issued on or after the
328.22 day following final enactment.
328.23 Section 16 is effective for disabilities existing on or
328.24 after the date of enactment for which claims for refund have not
328.25 expired under the time limit in Minnesota Statutes, section
328.26 289A.40, subdivision 1. Claims based upon reasonable cause must
328.27 be filed prior to the expiration of the repealed ten-year period
328.28 or within one year after the date of enactment, whichever is
328.29 earlier.
328.30 Section 18 is effective for refund claims filed on or after
328.31 the day following final enactment.
328.32 Section 20 is effective for tax years ending on or after
328.33 the day following final enactment.
328.34 Section 23 is effective for aircraft registered after June
328.35 30, 1999.
328.36 Section 24 is effective June 1, 1999.
329.1 Section 36 is effective at the same time section 1,
329.2 paragraph (c), of Public Law Number 106-21 becomes effective.