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Office of the Revisor of Statutes

HF 848

4th Engrossment - 89th Legislature (2015 - 2016) Posted on 06/08/2016 11:52am

KEY: stricken = removed, old language.
underscored = added, new language.
Version List Authors and Status
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Bill Text Versions

Engrossments
Introduction Posted on 02/12/2015
1st Engrossment Posted on 04/23/2015
2nd Engrossment Posted on 04/25/2015
3rd Engrossment Posted on 04/30/2015
4th Engrossment Posted on 05/24/2016
Unofficial Engrossments
1st Unofficial Engrossment Posted on 05/04/2015
Conference Committee Reports
CCR-HF0848 Posted on 05/22/2016

Current Version - 4th Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33 1.34 1.35 1.36 1.37 1.38 1.39 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36 2.37 2.38 2.39 2.40 2.41 2.42 2.43 2.44 2.45 2.46 2.47 2.48 2.49 2.50 2.51 2.52 2.53 2.54 2.55 2.56 2.57 2.58 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16
3.17 3.18
3.19 3.20 3.21 3.22 3.23 3.24
3.25 3.26
3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 3.36
3.37
4.1 4.2 4.3 4.4 4.5
4.6
4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 4.35 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21
5.22 5.23
5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11
6.12 6.13
6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20
7.21
7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 8.34 8.35 8.36 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10
9.11
9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 10.1 10.2 10.3 10.4
10.5
10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20
10.21
10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30
10.31
11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 11.34 11.35 12.1 12.2 12.3 12.4 12.5 12.6
12.7 12.8
12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13
13.14 13.15
13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 13.33 13.34 14.1 14.2
14.3 14.4
14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33 14.34 14.35 15.1 15.2 15.3 15.4 15.5 15.6
15.7 15.8
15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31
15.32 15.33
16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21
16.22 16.23
16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 16.33 16.34 17.1 17.2 17.3 17.4 17.5 17.6 17.7
17.8 17.9
17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 17.34 17.35 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33 18.34 18.35 18.36 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10
19.11
19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23
19.24 19.25
19.26 19.27 19.28 19.29 19.30 19.31 19.32 19.33 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14
20.15
20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 20.31 20.32 20.33 20.34 20.35 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10
21.11 21.12
21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 21.33 21.34 21.35 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 22.32 22.33 22.34 22.35 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14
23.15 23.16
23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 23.34 23.35 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12
24.13 24.14
24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24
24.25 24.26
24.27 24.28 24.29 24.30 24.31 24.32 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23
25.24
25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 25.33 25.34 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10
26.11
26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19
26.20 26.21 26.22
26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 26.33
27.1 27.2 27.3
27.4 27.5 27.6 27.7 27.8 27.9 27.10
27.11 27.12 27.13
27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33
28.1 28.2 28.3
28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18
28.19 28.20 28.21
28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31
29.1 29.2 29.3
29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14
29.15
29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30
29.31 29.32 29.33
30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19
30.20 30.21
30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 30.34 30.35 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15
31.16
31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 31.32 31.33 31.34 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 32.33 32.34 32.35 32.36 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14
33.15
33.16 33.17
33.18 33.19
33.20 33.21
33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 33.32 33.33 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10
34.11
34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21
34.22
34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 34.33 35.1 35.2 35.3 35.4 35.5
35.6
35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32 35.33 35.34 35.35 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 36.31 36.32 36.33 36.34 36.35 36.36 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 37.33 37.34 37.35 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20
38.21
38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 38.32
38.33
39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16
39.17
39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 39.34 39.35 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 40.32 40.33 40.34 40.35 40.36
41.1
41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 41.33 41.34 41.35 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20
42.21
42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 42.33 43.1 43.2 43.3 43.4 43.5
43.6
43.7 43.8 43.9 43.10 43.11
43.12 43.13
43.14 43.15 43.16 43.17 43.18
43.19 43.20
43.21 43.22 43.23 43.24 43.25 43.26
43.27 43.28
43.29 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24
44.25
44.26 44.27 44.28 44.29 44.30 44.31 44.32 44.33 44.34
45.1
45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32 45.33 45.34 45.35 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13
46.14 46.15
46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 46.33 46.34
47.1 47.2
47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12
47.13
47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23
47.24
47.25 47.26 47.27 47.28
47.29
47.30 47.31
48.1
48.2 48.3
48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 48.33 48.34 48.35
49.1 49.2
49.3 49.4 49.5 49.6 49.7
49.8
49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 49.33 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19
50.20 50.21 50.22
50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 50.33 50.34 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20
51.21 51.22 51.23
51.24 51.25 51.26 51.27 51.28 51.29 51.30 51.31 51.32 51.33 51.34 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 52.33 52.34 52.35 52.36 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 53.30 53.31 53.32 53.33 53.34 53.35 53.36 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32 54.33 54.34 54.35 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8
55.9 55.10 55.11
55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30 55.31 55.32 55.33 55.34 55.35 56.1 56.2 56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25 56.26 56.27 56.28 56.29 56.30 56.31 56.32 56.33 56.34 56.35 56.36 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31 57.32 57.33 57.34 57.35 57.36 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 58.32 58.33 58.34 58.35 58.36 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8
59.9 59.10
59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 59.34 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31
60.32 60.33 60.34
60.35 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 61.34 61.35 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 62.32 62.33 62.34 62.35 62.36 63.1 63.2 63.3 63.4 63.5 63.6
63.7 63.8
63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17
63.18 63.19 63.20
63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 63.33 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32 64.33 64.34 64.35 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26
65.27 65.28
65.29 65.30 65.31 65.32 65.33 65.34 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 66.33 66.34 66.35 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18
67.19 67.20
67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 67.33
68.1 68.2
68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 68.33 68.34 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 69.34 69.35 70.1 70.2 70.3 70.4 70.5 70.6
70.7 70.8
70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22
70.23 70.24
70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 71.1 71.2 71.3 71.4 71.5 71.6
71.7 71.8
71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 71.33 71.34 71.35 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 72.33
72.34 72.35
73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9
73.10 73.11
73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31
73.32 73.33
74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31
74.32 74.33
74.34 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 75.32 75.33 75.34 75.35 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26
76.27 76.28
76.29 76.30 76.31 76.32 76.33 76.34 76.35 77.1 77.2 77.3 77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 77.33 77.34 77.35 77.36
78.1 78.2
78.3 78.4 78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27
78.28 78.29
78.30 78.31 78.32 78.33 78.34 79.1 79.2 79.3 79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 79.32 79.33 79.34 79.35 79.36 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8
80.9 80.10
80.11 80.12 80.13 80.14
80.15 80.16 80.17
80.18 80.19 80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 80.32 80.33 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31 81.32 81.33 81.34 81.35 81.36 82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11
82.12 82.13
82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21
82.22 82.23
82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 82.33 83.1 83.2 83.3
83.4
83.5 83.6 83.7 83.8 83.9 83.10 83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20 83.21
83.22
83.23 83.24 83.25 83.26 83.27 83.28 83.29 83.30
83.31
83.32 84.1
84.2 84.3
84.4 84.5
84.6 84.7 84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29 84.30 84.31 84.32 84.33 84.34 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23 85.24 85.25 85.26 85.27 85.28 85.29 85.30 85.31 85.32 85.33 85.34 85.35 86.1 86.2 86.3 86.4 86.5 86.6 86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30 86.31 86.32 86.33 86.34 86.35 86.36 87.1 87.2 87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25
87.26
87.27 87.28 87.29 87.30 87.31 87.32 87.33 87.34 88.1 88.2 88.3 88.4 88.5 88.6 88.7 88.8 88.9 88.10 88.11 88.12 88.13 88.14 88.15 88.16 88.17 88.18 88.19 88.20 88.21 88.22 88.23 88.24
88.25 88.26 88.27 88.28 88.29 88.30 88.31 88.32 88.33 88.34 88.35
89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11 89.12 89.13 89.14 89.15 89.16 89.17 89.18 89.19 89.20 89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28 89.29 89.30 89.31 89.32 89.33 89.34 89.35 90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8 90.9 90.10 90.11 90.12 90.13 90.14 90.15
90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27 90.28 90.29 90.30 90.31 90.32 90.33
90.34 91.1 91.2 91.3 91.4 91.5 91.6 91.7 91.8 91.9
91.10 91.11
91.12 91.13 91.14 91.15 91.16 91.17 91.18 91.19 91.20 91.21
91.22 91.23
91.24 91.25 91.26 91.27 91.28
91.29
91.30 91.31 91.32 92.1 92.2 92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11
92.12 92.13
92.14 92.15 92.16 92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30 92.31 92.32 92.33 92.34 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11 93.12 93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20
93.21 93.22
93.23 93.24 93.25 93.26 93.27 93.28 93.29
93.30 93.31
93.32 93.33 94.1 94.2 94.3 94.4 94.5
94.6 94.7
94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15 94.16 94.17
94.18 94.19
94.20 94.21 94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29 94.30 94.31 94.32 94.33 95.1 95.2 95.3 95.4 95.5 95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21 95.22 95.23 95.24 95.25 95.26 95.27 95.28 95.29 95.30 95.31 95.32 95.33
95.34 95.35 96.1 96.2
96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15 96.16 96.17 96.18 96.19 96.20 96.21 96.22
96.23 96.24 96.25 96.26 96.27 96.28
96.29 96.30 96.31 96.32 96.33 96.34 97.1 97.2 97.3 97.4
97.5 97.6
97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16 97.17 97.18 97.19 97.20 97.21 97.22 97.23 97.24 97.25 97.26 97.27 97.28
97.29
97.30 97.31 97.32 97.33 98.1 98.2 98.3 98.4 98.5 98.6 98.7 98.8 98.9 98.10 98.11 98.12 98.13 98.14 98.15 98.16 98.17 98.18 98.19 98.20 98.21 98.22 98.23 98.24 98.25 98.26 98.27 98.28 98.29 98.30 98.31 98.32
98.33 98.34 98.35
99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23
99.24 99.25 99.26
99.27 99.28 99.29 99.30 99.31 99.32 99.33 99.34 99.35 100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11 100.12 100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26
100.27 100.28 100.29
100.30 100.31 100.32 100.33 100.34 100.35 101.1 101.2 101.3 101.4 101.5
101.6 101.7
101.8 101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27
101.28 101.29
101.30 101.31 101.32 101.33 102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19
102.20 102.21
102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 102.32 102.33 102.34 103.1 103.2 103.3 103.4 103.5 103.6 103.7 103.8 103.9 103.10 103.11
103.12 103.13 103.14
103.15 103.16 103.17 103.18 103.19 103.20 103.21 103.22 103.23 103.24 103.25
103.26 103.27
103.28 103.29 103.30 103.31 103.32 103.33 104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8
104.9 104.10 104.11 104.12
104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 104.31 104.32 104.33 104.34 105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32
105.33 105.34 105.35
106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32 106.33 106.34 106.35 106.36
107.1 107.2 107.3
107.4 107.5 107.6 107.7 107.8 107.9 107.10 107.11 107.12 107.13
107.14
107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25 107.26 107.27 107.28 107.29 107.30 107.31 107.32 107.33 108.1 108.2 108.3 108.4
108.5 108.6
108.7 108.8 108.9 108.10
108.11
108.12 108.13 108.14 108.15 108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23
108.24 108.25
108.26 108.27 108.28 108.29 108.30 108.31 108.32
109.1 109.2
109.3 109.4 109.5 109.6 109.7 109.8
109.9 109.10
109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26
109.27 109.28
109.29 109.30 109.31 109.32 110.1 110.2 110.3 110.4 110.5 110.6 110.7
110.8 110.9
110.10 110.11 110.12 110.13 110.14
110.15 110.16
110.17 110.18 110.19 110.20 110.21
110.22 110.23
110.24 110.25 110.26 110.27
110.28 110.29
110.30 111.1 111.2 111.3
111.4 111.5
111.6 111.7 111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30 111.31 111.32 111.33 111.34
112.1 112.2
112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15 112.16 112.17 112.18 112.19
112.20 112.21
112.22 112.23 112.24 112.25 112.26 112.27 112.28 112.29 112.30 112.31 112.32
113.1 113.2
113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21
113.22 113.23
113.24 113.25 113.26 113.27 113.28 113.29 113.30 113.31 113.32 113.33 113.34 114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.8 114.9 114.10
114.11 114.12
114.13 114.14 114.15 114.16 114.17
114.18 114.19
114.20 114.21 114.22 114.23 114.24 114.25
114.26 114.27
114.28 114.29 114.30 114.31 115.1 115.2
115.3 115.4
115.5 115.6 115.7 115.8 115.9 115.10 115.11 115.12 115.13 115.14 115.15 115.16 115.17 115.18 115.19
115.20 115.21
115.22 115.23 115.24 115.25 115.26 115.27 115.28 115.29 115.30 115.31 116.1 116.2 116.3 116.4 116.5 116.6 116.7 116.8 116.9 116.10 116.11 116.12 116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21 116.22 116.23 116.24 116.25 116.26 116.27 116.28 116.29 116.30 116.31 116.32 116.33 116.34 116.35
116.36
116.37 116.38 116.39 116.40
117.1
117.2 117.3 117.4 117.5 117.6
117.7
117.8 117.9 117.10 117.11 117.12 117.13 117.14 117.15 117.16 117.17 117.18 117.19 117.20 117.21 117.22
117.23
117.24 117.25 117.26 117.27 117.28 117.29 117.30 117.31 118.1 118.2
118.3
118.4 118.5 118.6 118.7 118.8
118.9
118.10 118.11 118.12 118.13 118.14 118.15 118.16 118.17 118.18 118.19 118.20 118.21 118.22 118.23 118.24 118.25 118.26 118.27
118.28
118.29 118.30 119.1 119.2 119.3 119.4 119.5 119.6 119.7 119.8 119.9 119.10 119.11 119.12
119.13
119.14 119.15 119.16 119.17 119.18 119.19
119.20
119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30 119.31 119.32 119.33 120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11
120.12 120.13
120.14 120.15 120.16 120.17 120.18 120.19 120.20 120.21 120.22 120.23
120.24
120.25 120.26 120.27
120.28
121.1 121.2
121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14
121.15
121.16 121.17 121.18 121.19 121.20 121.21 121.22 121.23 121.24 121.25 121.26 121.27 121.28 121.29 121.30 121.31 121.32 121.33 121.34 122.1 122.2 122.3 122.4 122.5 122.6 122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20 122.21
122.22 122.23
122.24 122.25 122.26 122.27 122.28 122.29 122.30 122.31 122.32 122.33 122.34 122.35 123.1 123.2 123.3 123.4 123.5 123.6 123.7 123.8 123.9 123.10 123.11
123.12
123.13 123.14 123.15 123.16 123.17 123.18 123.19 123.20 123.21 123.22 123.23 123.24 123.25 123.26 123.27 123.28 123.29 123.30 123.31 123.32 123.33 123.34 123.35 124.1 124.2 124.3 124.4 124.5 124.6 124.7 124.8 124.9 124.10 124.11 124.12 124.13 124.14
124.15 124.16
124.17 124.18
124.19 124.20 124.21 124.22 124.23 124.24 124.25 124.26 124.27 124.28 124.29 124.30 124.31 124.32
124.33
125.1 125.2 125.3 125.4 125.5 125.6 125.7 125.8 125.9 125.10 125.11 125.12 125.13 125.14 125.15 125.16 125.17 125.18 125.19 125.20 125.21 125.22 125.23 125.24 125.25 125.26 125.27 125.28 125.29 125.30 125.31 125.32 125.33 125.34 126.1 126.2 126.3 126.4 126.5 126.6 126.7 126.8 126.9 126.10 126.11 126.12 126.13 126.14 126.15 126.16 126.17 126.18 126.19 126.20 126.21 126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30 126.31 126.32 126.33 126.34
126.35
127.1 127.2 127.3 127.4 127.5 127.6 127.7 127.8 127.9 127.10 127.11 127.12 127.13 127.14 127.15 127.16 127.17 127.18 127.19 127.20 127.21 127.22 127.23 127.24 127.25 127.26 127.27 127.28 127.29 127.30 127.31
127.32
127.33 128.1 128.2 128.3 128.4 128.5 128.6 128.7 128.8 128.9 128.10 128.11 128.12 128.13 128.14 128.15 128.16 128.17 128.18 128.19 128.20 128.21 128.22 128.23 128.24 128.25 128.26 128.27
128.28 128.29
128.30 128.31 128.32 128.33 128.34 128.35 129.1 129.2 129.3 129.4 129.5 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15 129.16 129.17 129.18 129.19 129.20 129.21 129.22 129.23 129.24 129.25 129.26 129.27 129.28 129.29 129.30 129.31 129.32 129.33 129.34 130.1 130.2 130.3 130.4 130.5 130.6 130.7 130.8
130.9 130.10 130.11
130.12 130.13 130.14 130.15 130.16 130.17 130.18 130.19 130.20 130.21 130.22 130.23 130.24 130.25 130.26 130.27 130.28 130.29 130.30 130.31 130.32 130.33 130.34 131.1 131.2 131.3 131.4 131.5 131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14 131.15 131.16 131.17 131.18 131.19 131.20
131.21 131.22 131.23
131.24 131.25 131.26 131.27 131.28 131.29 131.30 131.31 131.32 131.33 131.34 131.35 132.1 132.2 132.3 132.4 132.5 132.6 132.7 132.8 132.9 132.10 132.11 132.12 132.13 132.14 132.15 132.16 132.17 132.18 132.19 132.20 132.21 132.22 132.23 132.24 132.25 132.26 132.27 132.28 132.29 132.30 132.31 132.32 132.33 132.34 133.1 133.2 133.3 133.4 133.5 133.6 133.7 133.8 133.9 133.10 133.11 133.12 133.13 133.14 133.15 133.16 133.17 133.18 133.19 133.20 133.21 133.22 133.23 133.24 133.25 133.26 133.27 133.28 133.29 133.30 133.31 133.32 133.33 133.34 133.35 134.1 134.2 134.3 134.4 134.5 134.6 134.7 134.8 134.9 134.10 134.11 134.12 134.13 134.14 134.15 134.16 134.17 134.18 134.19 134.20 134.21 134.22 134.23 134.24 134.25 134.26 134.27 134.28 134.29
134.30 134.31 134.32
134.33 134.34 134.35 135.1 135.2 135.3
135.4 135.5 135.6
135.7 135.8 135.9 135.10 135.11 135.12 135.13 135.14 135.15
135.16 135.17
135.18 135.19 135.20 135.21
135.22 135.23 135.24 135.25
135.26 135.27 135.28 135.29 135.30 135.31
136.1 136.2 136.3
136.4 136.5 136.6 136.7 136.8 136.9
136.10 136.11 136.12
136.13 136.14 136.15 136.16 136.17 136.18
136.19 136.20 136.21 136.22
136.23 136.24 136.25 136.26 136.27 136.28 136.29 136.30 136.31 137.1 137.2
137.3 137.4
137.5 137.6
137.7 137.8 137.9 137.10 137.11 137.12 137.13 137.14 137.15 137.16 137.17 137.18 137.19 137.20 137.21
137.22 137.23 137.24 137.25 137.26 137.27 137.28 137.29 137.30 137.31 137.32 137.33 138.1 138.2 138.3 138.4 138.5 138.6 138.7 138.8 138.9 138.10 138.11
138.12 138.13 138.14 138.15 138.16 138.17 138.18 138.19 138.20 138.21 138.22 138.23 138.24 138.25 138.26 138.27 138.28 138.29 138.30 138.31 138.32 138.33 138.34 139.1 139.2 139.3
139.4 139.5 139.6 139.7 139.8 139.9 139.10 139.11 139.12 139.13 139.14 139.15 139.16 139.17 139.18 139.19 139.20 139.21 139.22 139.23 139.24 139.25 139.26 139.27 139.28 139.29
139.30 139.31 139.32 139.33 139.34 140.1 140.2 140.3 140.4 140.5 140.6 140.7 140.8 140.9 140.10 140.11 140.12 140.13 140.14 140.15 140.16 140.17 140.18 140.19 140.20 140.21 140.22 140.23 140.24 140.25 140.26 140.27 140.28 140.29 140.30 140.31 140.32 140.33 140.34 140.35 140.36 141.1 141.2 141.3 141.4 141.5 141.6 141.7 141.8 141.9 141.10 141.11 141.12 141.13 141.14 141.15
141.16 141.17 141.18 141.19 141.20 141.21 141.22 141.23 141.24
141.25 141.26 141.27 141.28 141.29 141.30 141.31 141.32 141.33 141.34 142.1 142.2
142.3
142.4 142.5 142.6 142.7 142.8 142.9 142.10 142.11 142.12 142.13 142.14 142.15 142.16 142.17 142.18 142.19 142.20 142.21 142.22 142.23 142.24 142.25 142.26 142.27 142.28 142.29 142.30 142.31 142.32 142.33 142.34 143.1 143.2 143.3 143.4
143.5 143.6 143.7 143.8 143.9 143.10 143.11 143.12 143.13 143.14 143.15 143.16 143.17 143.18 143.19 143.20 143.21 143.22 143.23 143.24 143.25 143.26 143.27 143.28 143.29 143.30 143.31 143.32
144.1 144.2
144.3 144.4 144.5 144.6 144.7 144.8
144.9 144.10 144.11 144.12 144.13 144.14 144.15 144.16 144.17 144.18 144.19 144.20 144.21 144.22
144.23 144.24 144.25 144.26 144.27 144.28 144.29 144.30 144.31 144.32 145.1 145.2 145.3 145.4 145.5 145.6 145.7 145.8 145.9 145.10 145.11 145.12 145.13 145.14 145.15 145.16 145.17 145.18 145.19 145.20 145.21
145.22 145.23 145.24 145.25 145.26 145.27 145.28 145.29 145.30 145.31 145.32 145.33 145.34 145.35 146.1 146.2
146.3 146.4 146.5 146.6 146.7 146.8 146.9 146.10 146.11 146.12 146.13
146.14 146.15 146.16 146.17 146.18 146.19 146.20 146.21
146.22 146.23 146.24 146.25 146.26
146.27 146.28 146.29 146.30 146.31 146.32 147.1 147.2 147.3 147.4 147.5 147.6 147.7 147.8 147.9 147.10 147.11 147.12 147.13 147.14 147.15 147.16 147.17 147.18 147.19 147.20 147.21 147.22
147.23 147.24 147.25 147.26 147.27 147.28 147.29 147.30 147.31 147.32 147.33 147.34 147.35 148.1 148.2 148.3
148.4 148.5 148.6 148.7 148.8 148.9 148.10 148.11 148.12 148.13 148.14 148.15 148.16 148.17 148.18 148.19 148.20 148.21 148.22 148.23 148.24 148.25
148.26 148.27 148.28 148.29 148.30 148.31 148.32 148.33
149.1 149.2 149.3 149.4 149.5 149.6 149.7 149.8 149.9 149.10 149.11 149.12 149.13 149.14 149.15 149.16 149.17 149.18 149.19 149.20 149.21
149.22 149.23 149.24 149.25 149.26
149.27 149.28 149.29 149.30 149.31 149.32
150.1 150.2 150.3 150.4 150.5 150.6 150.7 150.8 150.9 150.10 150.11 150.12 150.13 150.14 150.15 150.16 150.17 150.18 150.19 150.20 150.21 150.22 150.23 150.24 150.25 150.26 150.27 150.28
150.29 150.30 150.31 150.32 150.33 150.34 150.35 151.1 151.2 151.3 151.4 151.5 151.6 151.7 151.8
151.9 151.10 151.11 151.12 151.13 151.14 151.15 151.16 151.17 151.18 151.19 151.20 151.21 151.22 151.23 151.24 151.25
151.26 151.27 151.28 151.29 151.30 151.31 151.32 151.33 151.34 152.1 152.2 152.3
152.4 152.5 152.6 152.7 152.8 152.9 152.10 152.11
152.12 152.13 152.14 152.15 152.16 152.17 152.18 152.19 152.20 152.21 152.22 152.23 152.24 152.25 152.26 152.27 152.28 152.29 152.30 152.31 152.32 152.33 153.1 153.2 153.3 153.4 153.5 153.6 153.7 153.8 153.9 153.10 153.11 153.12 153.13 153.14 153.15 153.16 153.17 153.18 153.19 153.20 153.21 153.22 153.23 153.24 153.25 153.26 153.27 153.28 153.29 153.30 153.31 153.32 153.33 153.34 153.35 154.1 154.2 154.3 154.4 154.5 154.6 154.7 154.8 154.9 154.10
154.11 154.12 154.13 154.14 154.15 154.16 154.17 154.18 154.19 154.20 154.21 154.22 154.23 154.24 154.25 154.26 154.27 154.28 154.29 154.30
154.31 154.32 154.33 154.34 155.1 155.2 155.3 155.4 155.5 155.6 155.7 155.8 155.9 155.10 155.11 155.12 155.13 155.14 155.15 155.16 155.17 155.18 155.19 155.20 155.21 155.22 155.23 155.24 155.25 155.26 155.27 155.28 155.29 155.30 155.31 155.32 155.33 155.34 155.35 155.36 156.1 156.2 156.3 156.4 156.5 156.6 156.7 156.8 156.9 156.10 156.11 156.12 156.13 156.14 156.15 156.16 156.17 156.18 156.19 156.20 156.21 156.22 156.23 156.24 156.25 156.26 156.27 156.28 156.29 156.30
156.31 156.32 156.33 156.34 156.35 157.1 157.2 157.3 157.4 157.5 157.6 157.7 157.8 157.9 157.10 157.11 157.12 157.13 157.14 157.15 157.16 157.17 157.18 157.19 157.20 157.21 157.22 157.23 157.24 157.25 157.26 157.27 157.28 157.29 157.30 157.31 157.32 157.33 157.34 157.35
158.1 158.2 158.3 158.4 158.5 158.6 158.7 158.8 158.9 158.10
158.11 158.12 158.13 158.14 158.15 158.16 158.17 158.18 158.19 158.20 158.21 158.22 158.23 158.24 158.25 158.26 158.27 158.28 158.29 158.30 158.31 158.32 158.33 158.34 158.35 159.1 159.2 159.3 159.4 159.5 159.6 159.7 159.8 159.9 159.10 159.11 159.12 159.13 159.14 159.15
159.16 159.17 159.18 159.19 159.20 159.21 159.22 159.23 159.24 159.25 159.26 159.27 159.28 159.29 159.30 159.31 159.32 159.33 159.34 160.1 160.2 160.3 160.4 160.5
160.6 160.7 160.8 160.9 160.10 160.11 160.12 160.13 160.14 160.15 160.16 160.17 160.18 160.19 160.20 160.21 160.22 160.23 160.24 160.25 160.26
160.27 160.28 160.29 160.30 160.31 160.32 160.33 160.34 161.1 161.2 161.3 161.4 161.5 161.6 161.7 161.8 161.9 161.10 161.11 161.12 161.13 161.14 161.15 161.16 161.17 161.18 161.19 161.20 161.21 161.22 161.23 161.24 161.25 161.26 161.27 161.28 161.29 161.30 161.31 161.32 161.33 161.34
161.35 162.1 162.2 162.3 162.4 162.5 162.6 162.7 162.8 162.9 162.10 162.11 162.12 162.13 162.14 162.15 162.16 162.17 162.18 162.19 162.20 162.21 162.22
162.23 162.24 162.25 162.26 162.27 162.28 162.29 162.30 162.31 162.32 162.33 162.34
163.1 163.2 163.3 163.4 163.5 163.6 163.7 163.8 163.9 163.10 163.11 163.12 163.13 163.14 163.15 163.16 163.17 163.18 163.19 163.20 163.21
163.22 163.23 163.24 163.25 163.26 163.27 163.28 163.29 163.30 163.31
163.32 163.33 163.34 164.1 164.2 164.3 164.4 164.5 164.6 164.7 164.8
164.9 164.10 164.11 164.12 164.13 164.14 164.15 164.16 164.17 164.18 164.19 164.20 164.21 164.22 164.23 164.24 164.25 164.26 164.27 164.28 164.29 164.30 164.31 164.32 164.33 164.34 165.1 165.2 165.3 165.4 165.5
165.6 165.7
165.8 165.9 165.10 165.11 165.12 165.13 165.14 165.15 165.16 165.17
165.18 165.19
165.20 165.21 165.22 165.23 165.24 165.25 165.26 165.27 165.28 165.29 165.30 165.31 165.32 165.33
166.1 166.2 166.3
166.4
166.5 166.6 166.7 166.8 166.9 166.10 166.11 166.12 166.13 166.14 166.15 166.16 166.17 166.18 166.19 166.20 166.21 166.22 166.23 166.24 166.25 166.26 166.27 166.28 166.29 166.30 166.31
166.32 166.33
167.1 167.2 167.3 167.4 167.5 167.6 167.7 167.8 167.9 167.10 167.11 167.12 167.13 167.14 167.15 167.16 167.17 167.18 167.19 167.20 167.21
167.22 167.23
167.24 167.25 167.26 167.27 167.28 167.29 167.30 167.31 167.32 168.1 168.2 168.3 168.4 168.5 168.6 168.7 168.8 168.9 168.10 168.11 168.12 168.13 168.14 168.15 168.16 168.17 168.18 168.19 168.20 168.21 168.22 168.23 168.24 168.25 168.26 168.27 168.28 168.29 168.30 168.31 168.32 168.33 168.34 169.1 169.2 169.3
169.4 169.5
169.6 169.7 169.8 169.9 169.10 169.11 169.12 169.13 169.14 169.15 169.16 169.17 169.18 169.19 169.20 169.21 169.22 169.23 169.24 169.25 169.26 169.27 169.28 169.29 169.30 169.31 169.32 169.33 169.34 170.1 170.2 170.3 170.4 170.5 170.6 170.7 170.8 170.9 170.10 170.11 170.12 170.13 170.14 170.15 170.16 170.17 170.18 170.19 170.20
170.21 170.22
170.23 170.24 170.25 170.26 170.27 170.28 170.29 170.30 170.31 170.32 170.33 170.34 171.1 171.2 171.3 171.4 171.5 171.6 171.7 171.8 171.9 171.10 171.11 171.12 171.13 171.14
171.15 171.16
171.17 171.18 171.19 171.20 171.21 171.22 171.23 171.24 171.25 171.26 171.27 171.28 171.29 171.30 171.31 171.32 171.33 171.34 172.1 172.2 172.3 172.4 172.5 172.6 172.7 172.8
172.9 172.10
172.11 172.12 172.13 172.14 172.15 172.16 172.17 172.18 172.19 172.20 172.21 172.22 172.23 172.24 172.25 172.26 172.27 172.28 172.29 172.30 172.31 172.32 172.33 172.34 173.1 173.2 173.3
173.4 173.5
173.6 173.7 173.8 173.9 173.10 173.11 173.12 173.13 173.14 173.15 173.16
173.17 173.18
173.19 173.20 173.21 173.22 173.23 173.24 173.25 173.26 173.27 173.28 173.29 173.30 173.31 173.32 173.33 174.1 174.2 174.3 174.4 174.5 174.6 174.7 174.8 174.9 174.10 174.11 174.12 174.13 174.14 174.15 174.16 174.17 174.18 174.19 174.20 174.21 174.22 174.23 174.24 174.25 174.26 174.27 174.28 174.29
174.30 174.31 174.32
174.33 174.34 174.35 175.1 175.2 175.3 175.4 175.5 175.6 175.7 175.8 175.9 175.10 175.11 175.12 175.13 175.14 175.15 175.16 175.17
175.18
175.19 175.20 175.21 175.22 175.23 175.24 175.25 175.26 175.27 175.28 175.29 175.30 175.31 175.32 175.33 175.34 176.1 176.2 176.3 176.4 176.5 176.6 176.7 176.8 176.9 176.10 176.11 176.12 176.13 176.14 176.15 176.16 176.17
176.18
176.19 176.20 176.21 176.22 176.23 176.24 176.25
176.26
176.27 176.28 176.29 176.30 176.31 176.32 176.33 177.1 177.2 177.3
177.4
177.5 177.6 177.7 177.8
177.9
177.10 177.11
177.12
177.13 177.14
177.15 177.16 177.17 177.18 177.19 177.20 177.21 177.22 177.23 177.24 177.25 177.26 177.27 177.28 177.29 178.1 178.2 178.3 178.4 178.5 178.6 178.7 178.8 178.9 178.10 178.11 178.12 178.13 178.14 178.15 178.16 178.17 178.18
178.19
178.20 178.21 178.22 178.23 178.24 178.25 178.26 178.27 178.28 178.29 178.30 178.31 178.32 178.33 178.34 178.35 179.1 179.2 179.3 179.4 179.5 179.6 179.7 179.8 179.9 179.10 179.11 179.12 179.13 179.14 179.15 179.16 179.17 179.18 179.19 179.20 179.21 179.22 179.23 179.24 179.25 179.26 179.27 179.28 179.29 179.30 179.31 179.32 179.33 179.34 179.35 180.1 180.2 180.3 180.4 180.5 180.6 180.7 180.8 180.9 180.10 180.11 180.12 180.13 180.14 180.15 180.16 180.17 180.18 180.19 180.20 180.21 180.22 180.23 180.24 180.25 180.26 180.27 180.28 180.29 180.30 180.31 180.32 180.33 180.34 180.35 181.1 181.2 181.3 181.4 181.5 181.6 181.7 181.8 181.9 181.10 181.11 181.12 181.13 181.14 181.15 181.16 181.17 181.18 181.19 181.20 181.21 181.22 181.23
181.24
181.25 181.26 181.27 181.28 181.29 181.30 181.31 181.32 181.33 181.34 181.35 182.1 182.2 182.3 182.4 182.5 182.6 182.7 182.8 182.9 182.10 182.11 182.12 182.13 182.14 182.15 182.16 182.17 182.18 182.19 182.20 182.21 182.22 182.23 182.24 182.25 182.26 182.27 182.28 182.29 182.30 182.31 182.32 182.33 182.34 182.35 183.1 183.2 183.3 183.4 183.5 183.6 183.7 183.8 183.9 183.10 183.11 183.12 183.13 183.14 183.15 183.16 183.17 183.18 183.19 183.20 183.21
183.22 183.23 183.24 183.25 183.26 183.27 183.28 183.29 183.30 183.31
183.32
183.33 184.1 184.2 184.3 184.4 184.5 184.6 184.7 184.8 184.9 184.10 184.11 184.12 184.13 184.14 184.15
184.16
184.17 184.18 184.19 184.20 184.21 184.22 184.23 184.24 184.25 184.26 184.27 184.28 184.29 184.30 184.31 184.32 184.33
185.1 185.2
185.3 185.4 185.5 185.6 185.7 185.8 185.9 185.10 185.11 185.12 185.13 185.14 185.15 185.16 185.17 185.18 185.19 185.20 185.21 185.22 185.23 185.24 185.25 185.26 185.27 185.28 185.29 185.30 185.31 185.32 185.33
185.34 185.35
186.1 186.2 186.3 186.4 186.5 186.6 186.7 186.8 186.9 186.10
186.11
186.12 186.13 186.14 186.15 186.16 186.17 186.18 186.19 186.20 186.21 186.22 186.23 186.24 186.25
186.26 186.27 186.28 186.29 186.30 186.31 186.32 186.33 186.34 187.1 187.2 187.3 187.4 187.5 187.6 187.7 187.8 187.9 187.10 187.11 187.12 187.13 187.14 187.15 187.16 187.17 187.18 187.19 187.20 187.21 187.22 187.23 187.24 187.25
187.26 187.27
187.28 187.29 187.30 187.31 187.32 187.33 188.1 188.2 188.3 188.4 188.5 188.6 188.7 188.8 188.9 188.10 188.11 188.12 188.13 188.14 188.15 188.16 188.17 188.18 188.19 188.20 188.21 188.22 188.23 188.24 188.25 188.26 188.27 188.28 188.29 188.30 188.31 188.32 188.33 188.34 188.35 189.1 189.2 189.3
189.4
189.5 189.6 189.7
189.8 189.9 189.10 189.11 189.12 189.13 189.14 189.15 189.16 189.17 189.18 189.19 189.20 189.21 189.22
189.23
189.24 189.25 189.26 189.27 189.28 189.29 189.30 189.31 189.32 190.1 190.2 190.3 190.4 190.5 190.6 190.7
190.8 190.9
190.10 190.11 190.12 190.13 190.14 190.15 190.16 190.17 190.18 190.19 190.20 190.21 190.22 190.23 190.24 190.25 190.26 190.27 190.28 190.29 190.30 190.31 190.32 190.33 190.34 190.35 191.1 191.2 191.3 191.4 191.5 191.6 191.7 191.8 191.9 191.10 191.11 191.12 191.13 191.14 191.15 191.16 191.17 191.18 191.19 191.20 191.21 191.22 191.23 191.24 191.25 191.26 191.27 191.28 191.29
191.30 191.31 191.32
191.33 191.34 191.35 192.1 192.2 192.3 192.4 192.5 192.6 192.7 192.8 192.9 192.10 192.11 192.12 192.13 192.14 192.15 192.16 192.17 192.18 192.19 192.20 192.21 192.22 192.23
192.24 192.25
192.26 192.27 192.28 192.29 192.30 192.31 192.32 192.33 192.34 192.35 193.1 193.2 193.3 193.4 193.5 193.6 193.7 193.8 193.9 193.10 193.11 193.12 193.13 193.14 193.15 193.16 193.17 193.18 193.19 193.20
193.21 193.22
193.23 193.24 193.25 193.26 193.27 193.28 193.29 193.30 193.31 193.32 193.33 193.34 194.1 194.2 194.3 194.4 194.5 194.6 194.7 194.8 194.9 194.10 194.11 194.12 194.13 194.14 194.15 194.16 194.17 194.18 194.19 194.20 194.21 194.22 194.23 194.24 194.25
194.26 194.27
194.28 194.29 194.30 194.31 194.32 194.33 194.34 194.35 195.1 195.2 195.3 195.4 195.5 195.6 195.7 195.8 195.9 195.10 195.11 195.12 195.13 195.14 195.15 195.16 195.17 195.18
195.19
195.20 195.21 195.22 195.23 195.24 195.25 195.26 195.27 195.28 195.29 195.30 195.31 195.32 196.1 196.2 196.3 196.4 196.5 196.6 196.7 196.8 196.9 196.10
196.11
196.12 196.13 196.14 196.15 196.16 196.17 196.18 196.19 196.20
196.21 196.22
196.23 196.24 196.25 196.26 196.27 196.28 196.29 196.30 196.31 196.32 196.33 197.1 197.2 197.3 197.4 197.5 197.6 197.7 197.8 197.9 197.10 197.11 197.12 197.13 197.14 197.15 197.16 197.17 197.18 197.19 197.20 197.21 197.22 197.23 197.24 197.25 197.26 197.27 197.28 197.29 197.30 197.31 197.32 197.33 197.34 197.35 198.1 198.2 198.3 198.4 198.5 198.6 198.7 198.8 198.9 198.10 198.11 198.12 198.13 198.14 198.15 198.16 198.17 198.18 198.19 198.20 198.21 198.22 198.23 198.24 198.25 198.26 198.27 198.28 198.29 198.30 198.31 198.32 198.33 198.34 198.35 199.1 199.2 199.3 199.4 199.5 199.6 199.7 199.8 199.9 199.10 199.11 199.12 199.13 199.14 199.15 199.16 199.17 199.18 199.19 199.20 199.21 199.22 199.23 199.24 199.25 199.26 199.27 199.28 199.29 199.30 199.31 199.32 199.33 199.34 199.35 199.36 200.1 200.2
200.3
200.4 200.5 200.6 200.7 200.8 200.9 200.10 200.11 200.12 200.13 200.14 200.15 200.16 200.17 200.18 200.19 200.20 200.21 200.22 200.23 200.24 200.25 200.26 200.27 200.28 200.29 200.30 200.31 200.32 200.33 200.34 201.1 201.2 201.3 201.4 201.5 201.6 201.7 201.8 201.9 201.10 201.11 201.12 201.13 201.14 201.15 201.16 201.17 201.18 201.19 201.20 201.21 201.22 201.23 201.24
201.25
201.26 201.27 201.28 201.29 201.30 201.31 201.32 201.33 201.34 201.35 202.1 202.2 202.3 202.4 202.5 202.6 202.7 202.8 202.9 202.10 202.11 202.12 202.13 202.14 202.15 202.16 202.17 202.18 202.19 202.20 202.21 202.22 202.23 202.24 202.25 202.26 202.27 202.28 202.29 202.30 202.31 202.32 202.33 202.34 202.35 202.36 203.1 203.2 203.3 203.4 203.5 203.6 203.7 203.8 203.9 203.10 203.11 203.12 203.13 203.14 203.15 203.16 203.17 203.18 203.19 203.20 203.21 203.22 203.23 203.24 203.25 203.26 203.27 203.28 203.29 203.30 203.31 203.32
203.33
203.34 204.1 204.2 204.3 204.4 204.5 204.6 204.7 204.8 204.9 204.10 204.11 204.12 204.13 204.14 204.15
204.16 204.17
204.18 204.19 204.20 204.21 204.22 204.23 204.24 204.25 204.26 204.27 204.28 204.29 204.30 204.31 204.32 204.33 204.34 205.1 205.2
205.3
205.4 205.5 205.6 205.7 205.8 205.9 205.10 205.11 205.12 205.13 205.14 205.15 205.16 205.17 205.18 205.19 205.20 205.21 205.22 205.23
205.24
205.25 205.26 205.27 205.28 205.29 205.30 205.31 205.32 206.1 206.2 206.3 206.4 206.5 206.6 206.7 206.8 206.9 206.10 206.11 206.12 206.13 206.14 206.15 206.16 206.17 206.18 206.19 206.20 206.21 206.22 206.23 206.24 206.25 206.26 206.27 206.28 206.29 206.30 206.31 206.32
206.33
206.34 207.1 207.2 207.3 207.4 207.5 207.6 207.7 207.8 207.9 207.10 207.11 207.12 207.13 207.14 207.15 207.16 207.17 207.18 207.19 207.20 207.21 207.22 207.23 207.24 207.25 207.26 207.27 207.28 207.29 207.30 207.31 207.32 207.33 207.34 208.1 208.2 208.3 208.4 208.5 208.6 208.7 208.8 208.9 208.10 208.11 208.12 208.13 208.14 208.15 208.16 208.17 208.18 208.19 208.20 208.21 208.22 208.23 208.24 208.25 208.26 208.27 208.28 208.29
208.30
208.31 208.32 208.33 208.34 209.1 209.2
209.3
209.4 209.5 209.6 209.7 209.8 209.9 209.10 209.11 209.12 209.13 209.14 209.15 209.16 209.17 209.18 209.19 209.20 209.21 209.22 209.23 209.24 209.25 209.26 209.27 209.28
209.29 209.30
209.31 210.1 210.2 210.3 210.4 210.5 210.6 210.7 210.8 210.9 210.10 210.11
210.12 210.13
210.14 210.15 210.16 210.17 210.18 210.19 210.20 210.21 210.22 210.23 210.24 210.25 210.26 210.27 210.28 210.29
210.30 210.31
210.32 211.1 211.2 211.3 211.4 211.5 211.6 211.7 211.8 211.9 211.10 211.11 211.12 211.13 211.14 211.15 211.16 211.17 211.18 211.19 211.20 211.21 211.22 211.23 211.24 211.25 211.26 211.27 211.28 211.29 211.30 211.31 211.32 211.33 211.34 211.35 212.1 212.2 212.3 212.4 212.5 212.6 212.7 212.8 212.9 212.10 212.11 212.12
212.13 212.14
212.15 212.16 212.17 212.18 212.19 212.20 212.21 212.22 212.23 212.24 212.25 212.26 212.27 212.28 212.29 212.30 212.31 212.32 212.33 212.34 212.35 213.1 213.2
213.3 213.4
213.5 213.6 213.7 213.8 213.9 213.10 213.11 213.12 213.13 213.14 213.15 213.16 213.17
213.18 213.19
213.20 213.21 213.22
213.23 213.24 213.25 213.26
213.27 213.28 213.29
213.30 214.1 214.2 214.3 214.4 214.5 214.6 214.7 214.8 214.9 214.10 214.11 214.12 214.13 214.14 214.15 214.16 214.17 214.18 214.19 214.20 214.21 214.22 214.23 214.24 214.25 214.26 214.27
214.28
214.29 214.30 214.31 214.32 214.33 214.34 215.1 215.2 215.3 215.4 215.5
215.6
215.7 215.8 215.9 215.10 215.11 215.12 215.13 215.14 215.15 215.16 215.17 215.18 215.19 215.20 215.21 215.22 215.23 215.24
215.25
215.26 215.27 215.28 215.29 215.30 215.31 215.32 215.33 216.1 216.2 216.3 216.4 216.5 216.6 216.7 216.8 216.9 216.10
216.11 216.12
216.13 216.14 216.15 216.16 216.17 216.18 216.19
216.20
216.21 216.22 216.23
216.24
216.25 216.26 216.27
216.28
216.29 217.1 217.2 217.3 217.4 217.5 217.6 217.7 217.8
217.9
217.10 217.11 217.12 217.13 217.14 217.15 217.16 217.17 217.18 217.19 217.20 217.21
217.22
217.23 217.24 217.25 217.26 217.27 217.28 217.29 217.30 217.31 217.32 217.33 218.1 218.2 218.3 218.4 218.5 218.6 218.7 218.8 218.9 218.10 218.11 218.12 218.13 218.14 218.15 218.16 218.17 218.18
218.19 218.20
218.21 218.22 218.23 218.24 218.25 218.26 218.27
218.28
218.29 218.30 218.31 218.32 218.33 219.1 219.2 219.3 219.4 219.5 219.6 219.7 219.8 219.9 219.10 219.11 219.12 219.13 219.14 219.15 219.16 219.17 219.18 219.19 219.20 219.21 219.22 219.23 219.24 219.25 219.26 219.27 219.28 219.29 219.30 219.31 219.32
219.33 219.34
219.35 220.1 220.2 220.3 220.4 220.5 220.6 220.7 220.8 220.9 220.10 220.11 220.12 220.13 220.14 220.15 220.16 220.17 220.18 220.19 220.20 220.21 220.22 220.23 220.24 220.25 220.26 220.27 220.28 220.29 220.30 220.31 220.32 220.33 220.34 220.35 220.36 221.1 221.2 221.3 221.4 221.5 221.6 221.7 221.8 221.9 221.10 221.11 221.12 221.13 221.14 221.15
221.16
221.17 221.18 221.19 221.20 221.21
221.22
221.23 221.24 221.25 221.26 221.27 221.28 221.29 221.30 221.31 221.32 222.1 222.2 222.3
222.4
222.5 222.6 222.7 222.8
222.9
222.10 222.11 222.12 222.13 222.14 222.15 222.16 222.17 222.18 222.19 222.20 222.21 222.22
222.23
222.24 222.25 222.26 222.27 222.28 222.29 222.30 222.31 223.1 223.2
223.3
223.4 223.5 223.6
223.7 223.8 223.9 223.10 223.11 223.12 223.13 223.14 223.15 223.16 223.17
223.18
223.19 223.20 223.21 223.22 223.23 223.24 223.25 223.26 223.27 223.28 223.29 223.30 223.31
224.1 224.2
224.3 224.4 224.5 224.6 224.7 224.8
224.9 224.10
224.11 224.12 224.13 224.14 224.15 224.16 224.17
224.18 224.19
224.20 224.21 224.22 224.23 224.24 224.25
224.26 224.27
224.28 224.29 224.30 224.31 225.1 225.2 225.3 225.4
225.5 225.6
225.7 225.8 225.9 225.10 225.11 225.12 225.13 225.14 225.15 225.16 225.17 225.18 225.19
225.20 225.21 225.22
225.23 225.24 225.25 225.26 225.27 225.28 225.29
225.30 225.31
226.1 226.2 226.3 226.4 226.5 226.6 226.7
226.8 226.9
226.10 226.11 226.12 226.13 226.14 226.15 226.16 226.17 226.18 226.19
226.20 226.21
226.22 226.23 226.24 226.25 226.26 226.27 226.28 226.29 226.30 226.31 226.32 226.33 227.1 227.2 227.3 227.4 227.5 227.6 227.7 227.8
227.9
227.10 227.11 227.12 227.13 227.14 227.15 227.16 227.17 227.18 227.19 227.20 227.21 227.22 227.23 227.24 227.25 227.26 227.27 227.28 227.29 227.30 227.31 227.32 227.33 227.34 228.1 228.2 228.3 228.4 228.5 228.6
228.7
228.8 228.9 228.10 228.11
228.12
228.13 228.14 228.15 228.16 228.17 228.18 228.19 228.20 228.21 228.22 228.23 228.24 228.25 228.26 228.27 228.28 228.29 228.30 228.31 228.32 228.33 229.1 229.2 229.3 229.4 229.5 229.6 229.7 229.8 229.9 229.10 229.11 229.12 229.13 229.14 229.15 229.16 229.17 229.18 229.19 229.20 229.21
229.22
229.23 229.24 229.25 229.26 229.27 229.28 229.29 229.30 229.31
229.32 229.33
230.1 230.2 230.3 230.4 230.5 230.6 230.7
230.8 230.9
230.10 230.11 230.12 230.13 230.14 230.15 230.16 230.17 230.18
230.19 230.20
230.21 230.22 230.23 230.24 230.25 230.26 230.27 230.28 230.29 230.30 230.31 230.32 230.33 231.1 231.2 231.3 231.4 231.5 231.6 231.7 231.8 231.9 231.10 231.11 231.12 231.13 231.14 231.15 231.16 231.17 231.18 231.19 231.20 231.21 231.22 231.23 231.24 231.25 231.26 231.27 231.28 231.29 231.30 231.31 231.32 231.33 231.34 231.35 231.36 232.1 232.2 232.3 232.4 232.5 232.6 232.7 232.8 232.9 232.10 232.11 232.12 232.13 232.14 232.15 232.16 232.17 232.18 232.19 232.20 232.21 232.22 232.23 232.24 232.25 232.26 232.27 232.28 232.29 232.30 232.31 232.32 232.33 232.34 232.35 233.1 233.2 233.3 233.4 233.5 233.6
233.7
233.8 233.9 233.10 233.11 233.12 233.13
233.14
233.15 233.16 233.17 233.18 233.19 233.20 233.21 233.22 233.23 233.24 233.25 233.26 233.27 233.28 233.29 233.30 233.31 233.32 233.33 234.1 234.2 234.3
234.4
234.5 234.6 234.7 234.8 234.9 234.10 234.11 234.12 234.13 234.14 234.15 234.16 234.17 234.18 234.19 234.20 234.21
234.22 234.23
234.24 234.25 234.26 234.27 234.28 234.29 234.30 234.31 234.32 234.33 235.1 235.2 235.3 235.4 235.5 235.6 235.7 235.8 235.9 235.10 235.11 235.12 235.13 235.14
235.15 235.16
235.17 235.18 235.19 235.20 235.21 235.22 235.23 235.24 235.25 235.26 235.27 235.28 235.29 235.30 235.31 235.32 235.33 235.34 235.35 236.1 236.2 236.3 236.4 236.5 236.6 236.7 236.8 236.9 236.10 236.11 236.12 236.13 236.14 236.15 236.16 236.17 236.18 236.19 236.20 236.21 236.22
236.23 236.24
236.25 236.26 236.27 236.28 236.29 236.30 236.31 236.32 236.33
237.1 237.2
237.3 237.4 237.5 237.6 237.7 237.8 237.9
237.10
237.11 237.12 237.13 237.14 237.15 237.16 237.17 237.18
237.19
237.20 237.21 237.22 237.23 237.24 237.25 237.26 237.27 237.28 237.29 237.30 237.31 237.32 238.1 238.2 238.3 238.4 238.5 238.6 238.7 238.8 238.9 238.10 238.11 238.12 238.13 238.14 238.15 238.16 238.17 238.18 238.19 238.20 238.21 238.22 238.23 238.24 238.25 238.26 238.27 238.28 238.29 238.30 238.31 238.32 238.33 238.34 238.35 238.36 239.1 239.2 239.3 239.4 239.5 239.6 239.7 239.8 239.9 239.10 239.11 239.12 239.13 239.14 239.15 239.16 239.17 239.18 239.19 239.20 239.21 239.22 239.23
239.24
239.25 239.26 239.27 239.28 239.29 239.30 239.31 239.32 239.33 239.34 239.35 240.1 240.2 240.3 240.4 240.5 240.6 240.7 240.8 240.9 240.10 240.11 240.12 240.13 240.14 240.15 240.16 240.17 240.18 240.19 240.20 240.21 240.22 240.23 240.24 240.25 240.26 240.27 240.28 240.29 240.30 240.31 240.32 240.33 240.34 240.35 240.36 241.1 241.2 241.3 241.4
241.5 241.6
241.7 241.8 241.9 241.10 241.11 241.12 241.13 241.14 241.15 241.16 241.17 241.18 241.19 241.20 241.21 241.22 241.23 241.24 241.25 241.26 241.27 241.28 241.29 241.30 241.31 241.32 241.33 241.34 241.35 242.1 242.2 242.3 242.4 242.5 242.6 242.7 242.8 242.9 242.10 242.11 242.12 242.13 242.14 242.15
242.16 242.17
242.18 242.19 242.20 242.21 242.22 242.23 242.24 242.25 242.26 242.27 242.28 242.29 242.30 242.31 242.32 242.33 242.34 242.35 243.1 243.2 243.3 243.4 243.5 243.6 243.7 243.8 243.9 243.10 243.11 243.12 243.13 243.14 243.15 243.16 243.17 243.18
243.19
243.20 243.21 243.22 243.23 243.24 243.25
243.26
243.27 243.28 243.29 243.30 243.31 243.32 243.33 244.1 244.2 244.3 244.4 244.5 244.6 244.7 244.8 244.9 244.10 244.11 244.12 244.13 244.14 244.15 244.16 244.17 244.18 244.19 244.20 244.21 244.22 244.23 244.24 244.25 244.26 244.27
244.28
244.29 244.30 244.31 244.32 244.33 244.34 244.35 245.1 245.2 245.3 245.4 245.5 245.6 245.7 245.8 245.9 245.10 245.11 245.12 245.13 245.14 245.15 245.16 245.17 245.18 245.19 245.20 245.21 245.22 245.23 245.24 245.25 245.26 245.27 245.28 245.29 245.30 245.31 245.32 245.33 245.34 245.35 245.36 246.1 246.2 246.3 246.4 246.5 246.6 246.7 246.8 246.9 246.10 246.11 246.12 246.13 246.14 246.15 246.16 246.17 246.18 246.19 246.20 246.21 246.22 246.23 246.24 246.25 246.26 246.27 246.28 246.29 246.30 246.31 246.32 246.33 246.34 246.35 247.1 247.2 247.3 247.4 247.5 247.6 247.7 247.8 247.9 247.10 247.11 247.12 247.13 247.14 247.15 247.16 247.17 247.18 247.19 247.20 247.21 247.22 247.23 247.24 247.25 247.26 247.27 247.28 247.29 247.30 247.31 247.32 247.33
247.34
247.35 248.1 248.2 248.3 248.4 248.5 248.6 248.7 248.8 248.9 248.10 248.11 248.12 248.13 248.14 248.15 248.16 248.17 248.18 248.19 248.20 248.21 248.22 248.23 248.24 248.25 248.26 248.27 248.28 248.29 248.30 248.31 248.32 248.33 248.34 248.35 249.1 249.2 249.3 249.4 249.5 249.6 249.7 249.8 249.9 249.10 249.11 249.12 249.13 249.14 249.15 249.16 249.17 249.18 249.19 249.20 249.21 249.22
249.23
249.24 249.25 249.26 249.27 249.28
249.29
249.30 249.31 250.1 250.2 250.3
250.4
250.5 250.6 250.7 250.8 250.9 250.10
250.11
250.12 250.13 250.14 250.15 250.16 250.17 250.18
250.19 250.20
250.21 250.22 250.23 250.24 250.25 250.26 250.27
250.28
250.29 250.30 251.1 251.2 251.3 251.4 251.5 251.6 251.7 251.8 251.9 251.10 251.11 251.12 251.13 251.14 251.15 251.16 251.17 251.18 251.19 251.20 251.21
251.22 251.23 251.24
251.25 251.26 251.27
251.28 251.29
251.30 251.31
251.32 252.1 252.2 252.3 252.4 252.5 252.6 252.7 252.8 252.9
252.10
252.11 252.12 252.13 252.14 252.15 252.16 252.17 252.18 252.19 252.20 252.21 252.22 252.23 252.24 252.25 252.26 252.27 252.28 252.29 252.30 252.31 252.32 252.33 252.34 253.1 253.2 253.3 253.4 253.5 253.6 253.7 253.8 253.9 253.10 253.11 253.12 253.13 253.14 253.15
253.16 253.17
253.18 253.19 253.20 253.21 253.22 253.23 253.24 253.25 253.26 253.27 253.28 253.29 253.30 253.31 253.32 253.33 253.34 254.1 254.2 254.3 254.4 254.5 254.6 254.7 254.8 254.9 254.10 254.11 254.12 254.13 254.14 254.15 254.16 254.17 254.18 254.19 254.20 254.21 254.22 254.23 254.24
254.25
254.26 254.27 254.28 254.29 254.30
254.31
254.32 255.1 255.2 255.3 255.4 255.5 255.6 255.7 255.8 255.9 255.10 255.11 255.12 255.13
255.14 255.15
255.16 255.17 255.18 255.19 255.20 255.21 255.22 255.23 255.24
255.25 255.26
255.27 255.28 255.29 255.30 255.31 255.32 256.1 256.2 256.3 256.4 256.5 256.6 256.7 256.8
256.9 256.10
256.11 256.12 256.13 256.14 256.15 256.16 256.17
256.18
256.19 256.20 256.21 256.22 256.23
256.24 256.25
256.26 256.27 256.28 256.29 256.30 256.31
257.1 257.2
257.3 257.4 257.5 257.6 257.7 257.8 257.9 257.10 257.11 257.12 257.13 257.14 257.15 257.16 257.17 257.18
257.19 257.20
257.21 257.22 257.23 257.24 257.25 257.26 257.27 257.28 257.29
257.30 257.31
257.32 258.1 258.2 258.3 258.4 258.5 258.6 258.7 258.8 258.9
258.10
258.11 258.12 258.13 258.14 258.15 258.16 258.17 258.18 258.19 258.20
258.21
258.22 258.23 258.24 258.25 258.26 258.27 258.28 258.29 258.30 258.31 258.32 258.33 259.1 259.2 259.3 259.4 259.5 259.6 259.7 259.8 259.9 259.10 259.11 259.12 259.13 259.14 259.15 259.16 259.17 259.18 259.19
259.20 259.21
259.22 259.23 259.24 259.25 259.26 259.27 259.28
259.29 259.30
259.31 259.32 259.33 260.1 260.2 260.3 260.4 260.5 260.6 260.7 260.8 260.9 260.10 260.11 260.12 260.13 260.14 260.15 260.16 260.17 260.18 260.19 260.20 260.21 260.22 260.23 260.24 260.25 260.26 260.27 260.28 260.29 260.30 260.31
260.32
260.33 260.34 260.35 261.1 261.2 261.3 261.4 261.5 261.6 261.7 261.8 261.9 261.10 261.11 261.12 261.13 261.14 261.15 261.16 261.17 261.18 261.19 261.20 261.21 261.22 261.23 261.24 261.25 261.26 261.27 261.28
261.29
261.30 261.31 261.32 261.33 261.34 262.1 262.2 262.3 262.4 262.5 262.6 262.7 262.8 262.9 262.10 262.11 262.12 262.13 262.14
262.15
262.16 262.17 262.18 262.19 262.20 262.21 262.22 262.23 262.24 262.25 262.26 262.27 262.28 262.29 262.30 262.31 262.32 262.33 262.34
263.1 263.2 263.3
263.4 263.5 263.6 263.7 263.8 263.9 263.10 263.11 263.12 263.13 263.14
263.15
263.16 263.17 263.18 263.19 263.20 263.21 263.22 263.23
263.24
263.25 263.26 263.27 263.28 263.29 263.30 263.31 263.32 264.1 264.2 264.3 264.4 264.5 264.6 264.7 264.8 264.9 264.10 264.11 264.12 264.13 264.14 264.15 264.16 264.17 264.18 264.19 264.20 264.21 264.22 264.23 264.24 264.25 264.26 264.27 264.28 264.29 264.30 264.31 264.32 264.33 264.34 264.35 264.36 265.1 265.2 265.3 265.4 265.5 265.6 265.7 265.8 265.9 265.10 265.11
265.12
265.13 265.14 265.15 265.16 265.17 265.18 265.19 265.20 265.21 265.22 265.23 265.24 265.25 265.26 265.27 265.28 265.29 265.30 265.31 265.32 265.33 265.34
266.1
266.2 266.3 266.4 266.5 266.6 266.7 266.8 266.9 266.10 266.11
266.12
266.13 266.14 266.15 266.16 266.17 266.18
266.19
266.20 266.21 266.22 266.23 266.24 266.25 266.26 266.27 266.28 266.29 266.30 266.31 266.32 267.1 267.2 267.3 267.4 267.5
267.6
267.7 267.8 267.9 267.10 267.11 267.12 267.13 267.14 267.15 267.16 267.17 267.18 267.19 267.20 267.21 267.22 267.23 267.24 267.25 267.26 267.27 267.28 267.29 267.30 267.31 267.32 267.33 267.34
268.1
268.2 268.3 268.4 268.5 268.6 268.7 268.8 268.9 268.10 268.11 268.12 268.13 268.14 268.15 268.16 268.17 268.18 268.19 268.20 268.21 268.22 268.23 268.24 268.25 268.26 268.27 268.28 268.29 268.30 268.31 268.32 268.33
268.34
269.1 269.2 269.3 269.4 269.5 269.6 269.7 269.8 269.9 269.10 269.11 269.12 269.13 269.14 269.15 269.16 269.17 269.18 269.19 269.20 269.21 269.22 269.23
269.24 269.25 269.26 269.27 269.28
269.29 269.30 269.31 269.32 269.33 269.34 269.35 270.1 270.2 270.3 270.4 270.5 270.6 270.7 270.8 270.9 270.10 270.11 270.12 270.13 270.14
270.15 270.16
270.17 270.18 270.19
270.20
270.21 270.22 270.23 270.24
270.25 270.26
270.27 270.28 270.29
270.30
271.1 271.2 271.3 271.4 271.5
271.6
271.7 271.8 271.9 271.10 271.11
271.12
271.13 271.14 271.15 271.16 271.17 271.18 271.19 271.20 271.21 271.22 271.23 271.24 271.25 271.26
271.27 271.28
271.29 271.30 272.1 272.2 272.3 272.4 272.5
272.6 272.7
272.8 272.9 272.10 272.11 272.12 272.13 272.14 272.15
272.16
272.17 272.18 272.19 272.20 272.21 272.22 272.23 272.24 272.25 272.26 272.27 272.28 272.29 272.30 272.31 272.32 273.1 273.2 273.3 273.4 273.5 273.6 273.7 273.8 273.9 273.10
273.11
273.12 273.13 273.14 273.15 273.16 273.17 273.18 273.19 273.20 273.21 273.22 273.23 273.24
273.25
273.26 273.27 273.28 273.29 273.30 273.31 273.32 273.33
274.1
274.2 274.3 274.4 274.5 274.6 274.7 274.8 274.9 274.10 274.11
274.12
274.13 274.14 274.15 274.16 274.17 274.18 274.19 274.20 274.21 274.22 274.23 274.24 274.25 274.26 274.27
274.28
274.29 274.30 274.31 274.32 275.1 275.2 275.3
275.4 275.5
275.6 275.7 275.8 275.9 275.10 275.11 275.12 275.13 275.14 275.15 275.16 275.17 275.18
275.19
275.20 275.21 275.22 275.23 275.24 275.25 275.26
275.27 275.28
275.29 275.30 276.1 276.2
276.3
276.4 276.5 276.6 276.7 276.8 276.9 276.10 276.11 276.12 276.13 276.14 276.15 276.16 276.17 276.18
276.19 276.20
276.21 276.22 276.23 276.24 276.25 276.26 276.27 276.28 276.29 276.30 276.31 276.32 276.33 277.1 277.2 277.3 277.4 277.5 277.6 277.7 277.8 277.9 277.10 277.11 277.12 277.13 277.14
277.15 277.16
277.17 277.18
277.19

A bill for an act
 relating to financing of state and local government; making changes to property,
individual income, corporate franchise, estate, sales and use, excise, petroleum
and other fuel, gambling, tobacco, special, mineral, local, and other taxes and
tax-related provisions; modifying local government aids and credits; amending
county levy authority; exempting certain electric generation facility property and
soccer stadium property from property tax; extending homestead value exclusion
for spouses of qualifying deceased veterans; amending the state general levy;
abating local property taxes in the Lake Mille Lacs area; establishing school
building bond agricultural credit; establishing reimbursement for certain
out-of-home placements of Indian children; establishing riparian protection
aid; forgiving certain aid penalties; providing for federal tax conformity;
modifying income tax credits; providing income tax credits; changing income
tax modifications; modifying residency rules; modifying sales and use tax
definitions; modifying sales and use tax collection requirements; modifying sales
and use tax exemptions; providing for reimbursement from the Minnesota Sports
Facilities Authority of certain sales and use taxes; allocating certain sales and use
tax revenues; modifying and allowing certain local sales and use taxes; modifying
provisions for gasoline used as a substitute for aviation gasoline; providing
tax rates on paper pull-tabs sold at bingo halls; providing definitions and a
tax rate for vapor products; modifying taconite tax distributions and deposits;
providing for local development projects; modifying public finance provisions;
transferring approval authority from the Iron Range Resources and Rehabilitation
Board to the commissioner of Iron Range resources and rehabilitation;
requiring the commissioner of Iron Range resources and rehabilitation to seek
a recommendation from the board in certain circumstances; providing for
transfer of ownership, eligibility, certification, and notification requirements for
enrollment of land in the Sustainable Forest Incentive Act; modifying the budget
reserve; providing a new markets grant program; providing a tax time savings
grant program; providing civil and criminal penalties for sales suppression
devices; allocating additional amounts to the border city enterprise zones; making
clarifying and conforming changes; removing obsolete language; requiring
reports; appropriating money; amending Minnesota Statutes 2014, sections 13.51,
subdivision 2; 15.38, subdivision 7; 69.021, subdivision 5; 116J.424; 136A.129,
subdivision 3; 138.053; 216B.161, subdivision 1; 270.071, subdivisions 2, 7, 8,
by adding a subdivision; 270.072, subdivisions 2, 3, by adding a subdivision;
270.12, by adding a subdivision; 270.82, subdivision 1; 270A.03, subdivision
5; 270B.14, subdivision 1; 270C.30; 270C.33, subdivisions 5, 8; 270C.34,
subdivision 2; 270C.347, subdivision 1; 270C.35, subdivision 3, by adding
a subdivision; 270C.38, subdivision 1; 270C.445, by adding a subdivision;
270C.446, subdivision 5; 270C.72, subdivision 4; 270C.89, subdivision 1;
271.06, subdivisions 2, 7; 271.08, subdivision 1; 271.21, subdivision 2; 272.02,
subdivisions 9, 10, by adding subdivisions; 272.0211, subdivision 1; 272.025,
subdivision 1; 272.029, subdivisions 2, 4, by adding a subdivision; 272.0295,
subdivision 4; 272.115, subdivision 2; 272.162; 273.032; 273.061, subdivision
7; 273.08; 273.121, by adding a subdivision; 273.124, subdivision 13; 273.13,
subdivisions 22, 34; 273.1392; 273.1393; 273.33, subdivisions 1, 2; 273.371;
273.372, subdivisions 1, 2, 4, by adding subdivisions; 274.01, subdivision 1;
274.13, subdivision 1; 274.135, subdivision 3; 275.025, subdivisions 1, 2,
4; 275.065, subdivisions 1, 3; 275.066; 275.07, subdivisions 1, 2; 275.08,
subdivision 1b; 275.62, subdivision 2; 276.04, subdivision 2; 276.11, subdivision
1; 276.111; 276A.01, subdivisions 8, 17; 278.01, subdivision 1; 278.12; 278.14,
subdivision 1; 279.01, subdivisions 1, 2, 3; 279.03, subdivision 2; 279.37,
subdivision 2; 282.01, subdivisions 1a, 1d, 4; 282.261, subdivision 2; 282.38,
subdivision 1; 287.2205; 289A.08, subdivisions 11, 16, by adding a subdivision;
289A.09, subdivisions 1, 2; 289A.11, subdivision 1; 289A.12, subdivision
14; 289A.18, subdivision 1, by adding a subdivision; 289A.20, subdivision
2; 289A.31, subdivision 1; 289A.35; 289A.37, subdivision 2; 289A.38,
subdivision 6; 289A.50, subdivision 7; 289A.60, subdivision 28, by adding a
subdivision; 290.01, subdivisions 7, 19a, 19b, 19c, 19d; 290.06, subdivision 22;
290.067, subdivisions 1, 2b; 290.0671, subdivision 7; 290.0672, subdivision
1; 290.0674, subdivision 2, by adding a subdivision; 290.0677, subdivision
1a; 290.068, subdivision 2; 290.091, subdivisions 2, 3; 290.0921, subdivision
3; 290.0922, subdivision 2; 290.17, subdivision 2; 290.31, subdivision 1;
290A.03, subdivision 13; 290A.19; 290C.01; 290C.02, subdivisions 1, 3, 6;
290C.03; 290C.04; 290C.05; 290C.055; 290C.07; 290C.08, subdivision 1;
290C.10; 290C.11; 290C.13, subdivision 6; 291.016, subdivisions 2, 3; 291.03,
subdivisions 9, 11, by adding a subdivision; 291.031; 295.54, subdivision 2;
295.55, subdivision 6; 296A.01, subdivisions 12, 33, 42, by adding subdivisions;
296A.02, by adding a subdivision; 296A.07, subdivisions 1, 4; 296A.08,
subdivision 2; 296A.09, subdivisions 1, 3, 5, 6; 296A.15, subdivisions 1, 4;
296A.17, subdivisions 1, 2, 3; 296A.18, subdivisions 1, 8; 296A.19, subdivision
1; 296A.22, subdivision 9; 296A.26; 297A.61, subdivisions 3, 10; 297A.66,
subdivisions 1, 2, 4, by adding a subdivision; 297A.67, subdivision 7a, by adding
subdivisions; 297A.68, subdivision 9; 297A.70, subdivision 14; 297A.71, by
adding subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.815, subdivision 3;
297A.82, subdivisions 4, 4a; 297D.02; 297E.02, subdivisions 1, 3, 7; 297E.04,
subdivision 1; 297E.05, subdivision 4; 297E.06, subdivision 1; 297F.01,
subdivision 19, by adding subdivisions; 297F.05, subdivisions 1, 3, by adding
subdivisions; 297F.09, subdivision 1; 297F.23; 297G.09, subdivision 1; 297G.22;
297H.04, subdivision 2; 297H.06, subdivision 2; 297I.05, subdivision 2; 297I.10,
subdivisions 1, 3; 297I.30, by adding a subdivision; 297I.60, subdivision 2;
298.001, subdivision 8; 298.01, subdivisions 3b, 4c; 298.22, subdivisions 1, 1a,
5a, 6, 8, 10, 11; 298.221; 298.2211, subdivision 3; 298.2213, subdivisions 4, 5,
6; 298.223, subdivisions 1, 2; 298.227; 298.24, by adding a subdivision; 298.28,
subdivisions 3, 5, 7a, 9d; 298.292, subdivision 2; 298.294; 298.296, subdivisions
1, 2, 4; 298.2961, subdivisions 2, 4; 298.298; 298.46, subdivision 2; 349.12, by
adding a subdivision; 366.095, subdivision 1; 383B.117, subdivision 2; 410.32;
412.301; 469.034, subdivision 2; 469.101, subdivision 1; 469.169, by adding a
subdivision; 469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; 469.319,
subdivision 5; 473.39, by adding a subdivision; 473H.09; 475.58, subdivision
3b; 475.60, subdivision 2; 477A.013, by adding a subdivision; 477A.017,
subdivisions 2, 3; 477A.03, subdivision 2b; 477A.19, by adding subdivisions;
559.202, subdivision 2; 609.5316, subdivision 3; Minnesota Statutes 2015
Supplement, sections 16A.152, subdivision 2; 289A.02, subdivision 7; 290.01,
subdivisions 19, 31; 290.0671, subdivision 1; 290A.03, subdivision 15; 291.005,
subdivision 1; 297E.02, subdivision 6; 477A.015; 477A.03, subdivision 2a; Laws
1980, chapter 511, sections 1, subdivision 2, as amended; 2, as amended; Laws
1988, chapter 645, section 3, as amended; Laws 1991, chapter 291, article 8,
section 27, subdivisions 3, as amended, 4, as amended, 5, 6; Laws 1996, chapter
471, article 2, section 29, subdivision 4, as amended; article 3, section 51; Laws
1999, chapter 243, article 4, section 18, subdivision 1, as amended; Laws 2001,
First Special Session chapter 5, article 3, section 86; Laws 2008, chapter 154,
article 9, section 21, subdivision 2; Laws 2008, chapter 366, article 7, section 20;
Laws 2009, chapter 88, article 2, section 46, subdivisions 1, as amended, 2, 3, as
amended, 4, 5; article 5, section 17, as amended; Laws 2014, chapter 308, article
1, section 14, subdivision 2; article 6, section 9; article 9, section 94; proposing
coding for new law in Minnesota Statutes, chapters 103C; 116J; 216B; 270C;
273; 290; 290B; 290C; 293; 477A; 609; repealing Minnesota Statutes 2014,
sections 272.02, subdivision 23; 281.22; 290.067, subdivisions 2, 2a; 290C.02,
subdivisions 5, 9; 290C.06; 297F.05, subdivision 1a; 477A.20; Minnesota Rules,
parts 8092.1400; 8092.2000; 8100.0700; 8125.1300, subpart 3.

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

ARTICLE 1

PROPERTY TAX

Section 1.

new text begin [103C.333] COUNTY LEVY AUTHORITY.
 new text end

new text begin Notwithstanding any other law to the contrary, a county levying a tax under section
103C.331 shall not include any taxes levied under those authorities in the levy certified
under section 275.07, subdivision 1, paragraph (a). A county levying under section
103C.331 shall separately certify that amount, and the auditor shall extend that levy as a
special taxing district levy under sections 275.066 and 275.07, subdivision 1, paragraph (b).
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for certifications made in 2016 and
thereafter.
 new text end

Sec. 2.

Minnesota Statutes 2014, section 138.053, is amended to read:


138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR
TOWNS.

The governing body of any home rule charter or statutory city or town may annually
appropriate from its general fund an amount not to exceed 0.02418 percent of estimated
market value, derived from ad valorem taxes on property or other revenues, to be paid to
the historical society of its respective new text begin city, town, or new text end county to be used for the promotion of
historical work and to aid in defraying the expenses of carrying on the historical work in the
county. No city or town may appropriate any funds for the benefit of any historical society
unless the society is affiliated with and approved by the Minnesota Historical Society.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

new text begin [216B.1647] PROPERTY TAX ADJUSTMENT; COOPERATIVE
ASSOCIATION.
 new text end

new text begin A cooperative electric association that has elected to be subject to rate regulation
under section 216B.026 is eligible to file with the commission for approval of an
adjustment for real and personal property taxes, fees, and permits.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2014, section 272.02, is amended by adding a subdivision
to read:


new text begin Subd. 100. new text end

new text begin Electric generation facility; personal property. new text end

new text begin (a) Notwithstanding
subdivision 9, clause (a), attached machinery, transformers, and other personal property
that (1) is part of a natural gas-fired combined heat and power facility, (2) generates
electricity and steam for at least partial consumption as part of an industrial use, including
corn processing, (3) is less than 80,000 kilowatts of installed capacity, and (4) meets the
requirements of this subdivision, are exempt.
 new text end

new text begin (b) At the time of construction, the facility must:
 new text end

new text begin (1) be designed to utilize natural gas as a primary fuel;
 new text end

new text begin (2) not be owned by a public utility as defined in section 216B.02, subdivision 4;
 new text end

new text begin (3) be located within 15 miles of an existing natural gas pipeline and within one mile
of an existing electrical transmission substation; and
 new text end

new text begin (4) be located outside the metropolitan area as defined in section 473.121,
subdivision 2.
 new text end

new text begin (c) Construction of the facility must commence after January 1, 2015, and
before January 1, 2019. Property eligible for this exemption does not include electric
transmission lines and interconnections, or gas pipelines and interconnections, appurtenant
to the property or the facility.
 new text end

new text begin (d) In lieu of personal property taxes each year, the owner of the combined heat and
power facility shall pay a base payment of 0.14 cents per kilowatt-hour of electricity
produced by the facility during the previous calendar year. In addition to the base payment
and in lieu of personal property taxes each year, the owner of the combined heat and power
facility shall pay an additional payment of 0.08 cents per kilowatt-hour of electricity
produced by the facility during the previous calendar year if, during the previous calendar
year, the host township or city had an agreement with a municipal utilities commission
to share the cost of acquiring, developing, and marketing land for industrial purposes,
and under such agreement both the host township or city and the municipal utilities
commission provided funds during the previous calendar year as part of a cost-sharing
agreement. The additional payment to be paid by the owner of the combined heat and
power facility shall be the lesser of 0.08 cents per kilowatt-hour of electricity produced
by the facility or 57 percent of the amount funded by the host township or city during
the previous calendar year pursuant to the aforementioned cost-sharing agreement. The
payments imposed under this section shall be paid to the county treasurer for the benefit of
the host township or city, at the time and in the manner provided for payment of property
taxes under section 277.01, subdivision 3. If unpaid, the payments are subject to the same
enforcement, collection, and interest and penalties as delinquent personal property taxes.
Except to the extent inconsistent with this section, sections 277.01 to 277.24 and 278.01
to 278.13 apply to the payments imposed under this section, and for purposes of those
sections the payments imposed under this section are considered personal property taxes.
 new text end

new text begin (e) The owner of the combined heat and power facility shall file a report with the
commissioner of revenue annually on or before February 1, detailing the amount of
electricity in kilowatt-hours that was produced by the facility and the amount funded by
the host township or city in accordance with the cost-sharing agreement described in
paragraph (d) during the previous calendar year. The commissioner shall prescribe the
form of the report. The report must contain the information required by the commissioner
to determine the payments due under this section payable in the current year. If an owner
of the facility subject to taxation under this section fails to file the report by the due date,
the commissioner of revenue shall determine the payments based upon the nameplate
capacity of the system multiplied by a capacity factor of 85 percent.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable beginning in 2017
and thereafter.
 new text end

Sec. 5.

Minnesota Statutes 2014, section 272.02, is amended by adding a subdivision
to read:


new text begin Subd. 101. new text end

new text begin Electric generation facility; personal property. new text end

new text begin (a) Notwithstanding
subdivision 9, clause (a), attached machinery and other personal property that is part of an
electric generation facility with more than 35 megawatts and less than 40 megawatts of
installed capacity and that meets the requirements of this subdivision is exempt from taxes
and payments in lieu of taxes. The facility must:
 new text end

new text begin (1) be designed to utilize natural gas as a primary fuel;
 new text end

new text begin (2) be owned and operated by a municipal power agency as defined in section
453.52, subdivision 8;
 new text end

new text begin (3) be located within 800 feet of an existing natural gas pipeline;
 new text end

new text begin (4) satisfy a resource deficiency identified in an approved integrated resource plan
filed under section 216B.2422;
 new text end

new text begin (5) be located outside the metropolitan area as defined under section 473.121,
subdivision 2; and
 new text end

new text begin (6) have received, by resolution, the approval of the governing bodies of the city
and county in which it is located for the exemption of personal property provided by
this subdivision.
 new text end

new text begin (b) Construction of the facility must have been commenced after January 1, 2015,
and before January 1, 2016. Property eligible for this exemption does not include electric
transmission lines and interconnections or gas pipelines and interconnections appurtenant
to the property or the facility.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2017 and
thereafter.
 new text end

Sec. 6.

Minnesota Statutes 2014, section 272.162, is amended to read:


272.162 RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS.

Subdivision 1.

Conditions restricting transfer.

When a deed or other instrument
conveying a parcel of land is presented to the county auditor for transfer or division under
sections 272.12, 272.16, and 272.161, the auditor shall not transfer or divide the land or its
net tax capacity in the official records and shall not certify the instrument as provided in
section 272.12, if:

(a) The land conveyed is less than a whole parcel of land as charged in the tax lists;

(b) The part conveyed appears within the area of application of municipal new text begin or
countynew text end subdivision regulations adopted and filed under new text begin section 394.35 or new text end section 462.36,
subdivision 1; and

(c) The part conveyed is part of or constitutes a subdivision as defined in section
462.352, subdivision 12.

Subd. 2.

Conditions allowing transfer.

new text begin (a) new text end Notwithstanding the provisions of
subdivision 1, the county auditor may transfer or divide the land and its net tax capacity
and may certify the instrument if the instrument contains a certification by the clerk of
the municipalitynew text begin or designated county planning officialnew text end :

deleted text begin (a)deleted text end new text begin (1)new text end that the municipality'snew text begin or county'snew text end subdivision regulations do not apply;

deleted text begin (b)deleted text end new text begin (2)new text end that the subdivision has been approved by the governing body of the
municipalitynew text begin or countynew text end ; or

deleted text begin (c)deleted text end new text begin (3)new text end that the restrictions on the division of taxes and filing and recording have
been waived by resolution of the governing body of the municipality new text begin or county new text end in the
particular case because compliance would create an unnecessary hardship and failure to
comply would not interfere with the purpose of the regulations.

new text begin (b) new text end If any of the conditions for certification by the municipalitynew text begin or countynew text end as provided
in this subdivision exist and the municipalitynew text begin or countynew text end does not certify that they exist
within 24 hours after the instrument of conveyance has been presented to the clerk of
the municipalitynew text begin or designated county planning officialnew text end , the provisions of subdivision 1
do not apply.

new text begin (c) new text end If an unexecuted instrument is presented to the municipality new text begin or county new text end and
any of the conditions for certification by the municipality new text begin or county new text end as provided in
this subdivision exist, the unexecuted instrument must be certified by the clerk of the
municipalitynew text begin or the designated county planning officialnew text end .

Subd. 3.

Applicability of restrictions.

new text begin (a) new text end This section does not apply to the
exceptions set forth in section 272.12.

new text begin (b) new text end This section applies only to land within municipalities new text begin or counties new text end which choose
to be governed by its provisions. A municipality new text begin or county new text end may choose to have this
section apply to the property within its boundaries by filing a certified copy of a resolution
of its governing body making that choice with the auditor and recorder of the county in
which it is located.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2014, section 273.13, subdivision 34, is amended to read:


Subd. 34.

Homestead of disabled veteran or family caregiver.

(a) All or a
portion of the market value of property owned by a veteran and serving as the veteran's
homestead under this section is excluded in determining the property's taxable market
value if the veteran has a service-connected disability of 70 percent or more as certified
by the United States Department of Veterans Affairs. To qualify for exclusion under this
subdivision, the veteran must have been honorably discharged from the United States
armed forces, as indicated by United States Government Form DD214 or other official
military discharge papers.

(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
excluded, except as provided in clause (2); and

(2) for a total (100 percent) and permanent disability, $300,000 of market value is
excluded.

(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
spouse holds the legal or beneficial title to the homestead and permanently resides there,
the exclusion shall carry over to the benefit of the veteran's spouse deleted text begin for the current taxes
payable year and for eight additional taxes payable years ordeleted text end until such time as the spouse
remarries, or sells, transfers, or otherwise disposes of the propertydeleted text begin , whichever comes firstdeleted text end .
Qualification under this paragraph requires an annual application under paragraph (h).

(d) If the spouse of a member of any branch or unit of the United States armed
forces who dies due to a service-connected cause while serving honorably in active
service, as indicated on United States Government Form DD1300 or DD2064, holds
the legal or beneficial title to a homestead and permanently resides there, the spouse is
entitled to the benefit described in paragraph (b), clause (2), deleted text begin for eight taxes payable years,
ordeleted text end until such time as the spouse remarries or sells, transfers, or otherwise disposes of the
propertydeleted text begin , whichever comes firstdeleted text end .

(e) If a veteran meets the disability criteria of paragraph (a) but does not own
property classified as homestead in the state of Minnesota, then the homestead of the
veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran
would otherwise qualify for under paragraph (b).

(f) In the case of an agricultural homestead, only the portion of the property
consisting of the house and garage and immediately surrounding one acre of land qualifies
for the valuation exclusion under this subdivision.

(g) A property qualifying for a valuation exclusion under this subdivision is not
eligible for the market value exclusion under subdivision 35, or classification under
subdivision 22, paragraph (b).

(h) To qualify for a valuation exclusion under this subdivision a property owner
must apply to the assessor by July 1 of each assessment year, except that an annual
reapplication is not required once a property has been accepted for a valuation exclusion
under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and
the property continues to qualify until there is a change in ownership. For an application
received after July 1 of any calendar year, the exclusion shall become effective for the
following assessment year.

(i) A first-time application by a qualifying spouse for the market value exclusion under
paragraph (d) must be made any time within two years of the death of the service member.

(j) For purposes of this subdivision:

(1) "active service" has the meaning given in section 190.05;

(2) "own" means that the person's name is present as an owner on the property deed;

(3) "primary family caregiver" means a person who is approved by the secretary of
the United States Department of Veterans Affairs for assistance as the primary provider
of personal care services for an eligible veteran under the Program of Comprehensive
Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G;
and

(4) "veteran" has the meaning given the term in section 197.447.

(k) The purpose of this provision of law providing a level of homestead property tax
relief for gravely disabled veterans, their primary family caregivers, and their surviving
spouses is to help ease the burdens of war for those among our state's citizens who bear
those burdens most heavily.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2017.
 new text end

Sec. 8.

Minnesota Statutes 2014, section 275.025, subdivision 1, is amended to read:


Subdivision 1.

Levy amount.

The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section. The state general levy base amount new text begin for commercial-industrial property new text end is
deleted text begin $592,000,000deleted text end new text begin $762,664,000new text end for taxes payable in deleted text begin 2002deleted text end new text begin 2017. The state general levy base
amount for seasonal-recreational property is $43,111,000 for taxes payable in 2017new text end . For
taxes payable in subsequent years, deleted text begin thedeleted text end new text begin eachnew text end levy base amount is increased each year by
multiplying the levy base amount for the prior year by the sum of one plus the rate of
increase, if any, in the implicit price deflator for government consumption expenditures
and gross investment for state and local governments prepared by the Bureau of Economic
Analysts of the United States Department of Commerce for the 12-month period ending
March 31 of the year prior to the year the taxes are payable. The tax under this section is
not treated as a local tax rate under section 469.177 and is not the levy of a governmental
unit under chapters 276A and 473F.

The commissioner shall increase or decrease the preliminary or final deleted text begin ratedeleted text end new text begin ratesnew text end for a
year as necessary to account for errors and tax base changes that affected a preliminary or
final rate for either of the two preceding years. Adjustments are allowed to the extent that
the necessary information is available to the commissioner at the time the rates for a year
must be certified, and for the following reasons:

(1) an erroneous report of taxable value by a local official;

(2) an erroneous calculation by the commissioner; and

(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported on the abstracts of tax lists submitted under
section 275.29 that was not reported on the abstracts of assessment submitted under
section 270C.89 for the same year.

The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2017.
 new text end

Sec. 9.

Minnesota Statutes 2014, section 275.025, subdivision 2, is amended to read:


Subd. 2.

Commercial-industrial tax capacity.

For the purposes of this section,
"commercial-industrial tax capacity" means the tax capacity of all taxable property
classified as class 3 or class 5(1) under section 273.13, deleted text begin except fordeleted text end new text begin excluding: (1) the first
$100,000 of market value of each parcel of commercial-industrial net tax capacity as
defined under section 273.13, subdivision 24, clauses (1) and (2); (2) new text end electric generation
attached machinery under class 3new text begin ;new text end and new text begin (3) new text end property described in section 473.625. County
commercial-industrial tax capacity amounts are not adjusted for the captured net tax
capacity of a tax increment financing district under section 469.177, subdivision 2, the
net tax capacity of transmission lines deducted from a local government's total net tax
capacity under section 273.425, or fiscal disparities contribution and distribution net tax
capacities under chapter 276A or 473F.new text begin For purposes of this subdivision, the procedures
for determining eligibility for tier 1 under section 273.13, subdivision 24, clauses (1) and
(2), shall apply in determining the portion of a property eligible to be considered within
the first $100,000 of market value.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2017.
 new text end

Sec. 10.

Minnesota Statutes 2014, section 275.025, subdivision 4, is amended to read:


Subd. 4.

Apportionment and levy of state general tax.

deleted text begin Ninety-five percent ofdeleted text end The
state general tax must be levied by applying a uniform rate to all commercial-industrial tax
capacity and deleted text begin five percent of the state general tax must be levied by applyingdeleted text end a uniform
rate to all seasonal residential recreational tax capacity. On or before October 1 each year,
the commissioner of revenue shall certify the preliminary state general levy rates to each
county auditor that must be used to prepare the notices of proposed property taxes for taxes
payable in the following year. By January 1 of each year, the commissioner shall certify the
final state general levy deleted text begin ratedeleted text end new text begin ratesnew text end to each county auditor that shall be used in spreading taxes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2017.
 new text end

Sec. 11.

Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read:


Subdivision 1.

Proposed levy.

(a) Notwithstanding any law or charter to the
contrary, on or before September 30, each county deleted text begin and eachdeleted text end new text begin ,new text end home rule charter or statutory
citynew text begin , and special taxing district, excluding the Metropolitan Council and the Metropolitan
Mosquito Control District,new text end shall certify to the county auditor the proposed property tax
levy for taxes payable in the following year.new text begin The proposed levy certification date for
the Metropolitan Council shall be as prescribed in sections 473.249 and 473.446. The
proposed levy certification date for the Metropolitan Mosquito Control District shall be
as prescribed in section 473.711.
new text end

(b) Notwithstanding any law or charter to the contrary, on or before September 15,
each town deleted text begin and each special taxing districtdeleted text end new text begin , the Metropolitan Council, and the Metropolitan
Mosquito Control Districtnew text end shall adopt and certify to the county auditor a proposed property
tax levy for taxes payable in the following year. For towns, the final certified levy shall
also be considered the proposed levy.

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with proposed levy
certifications for taxes payable in 2017.
 new text end

Sec. 12.

Minnesota Statutes 2014, section 275.066, is amended to read:


275.066 SPECIAL TAXING DISTRICTS; DEFINITION.

For the purposes of property taxation and property tax state aids, the term "special
taxing districts" includes the following entities:

(1) watershed districts under chapter 103D;

(2) sanitary districts under sections 442A.01 to 442A.29;

(3) regional sanitary sewer districts under sections 115.61 to 115.67;

(4) regional public library districts under section 134.201;

(5) park districts under chapter 398;

(6) regional railroad authorities under chapter 398A;

(7) hospital districts under sections 447.31 to 447.38;

(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;

(9) Duluth Transit Authority under sections 458A.21 to 458A.37;

(10) regional development commissions under sections 462.381 to 462.398;

(11) housing and redevelopment authorities under sections 469.001 to 469.047;

(12) port authorities under sections 469.048 to 469.068;

(13) economic development authorities under sections 469.090 to 469.1081;

(14) Metropolitan Council under sections 473.123 to 473.549;

(15) Metropolitan Airports Commission under sections 473.601 to 473.679;

(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;

(17) Morrison County Rural Development Financing Authority under Laws 1982,
chapter 437, section 1;

(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;

(19) East Lake County Medical Clinic District under Laws 1989, chapter 211,
sections 1 to 6;

(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article
5, section 39;

(21) Middle Mississippi River Watershed Management Organization under sections
103B.211 and 103B.241;

(22) emergency medical services special taxing districts under section 144F.01;

(23) a county levying under the authority of section 103B.241, 103B.245, deleted text begin or
deleted text end 103B.251new text begin , or 103C.331new text end ;

(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
under Laws 2003, First Special Session chapter 21, article 4, section 12;

(25) an airport authority created under section 360.0426; and

(26) any other political subdivision of the state of Minnesota, excluding counties,
school districts, cities, and towns, that has the power to adopt and certify a property tax
levy to the county auditor, as determined by the commissioner of revenue.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2017 and
thereafter.
 new text end

Sec. 13.

Minnesota Statutes 2014, section 275.07, subdivision 1, is amended to read:


Subdivision 1.

Certification of levy.

(a) Except as provided under paragraph (b),
the taxes voted by cities, counties, school districts, and special districts shall be certified
by the proper authorities to the county auditor on or before five working days after
December 20 in each year. A town must certify the levy adopted by the town board to
the county auditor by September 15 each year. If the town board modifies the levy at a
special town meeting after September 15, the town board must recertify its levy to the
county auditor on or before five working days after December 20. If a city, town, county,
school district, or special district fails to certify its levy by that date, its levy shall be the
amount levied by it for the preceding year.

(b)(i) The taxes voted by counties under sections 103B.241, 103B.245, deleted text begin and
deleted text end 103B.251new text begin , and 103C.331new text end shall be separately certified by the county to the county auditor
on or before five working days after December 20 in each year. The taxes certified
shall not be reduced by the county auditor by the aid received under section 273.1398,
subdivision 3. If a county fails to certify its levy by that date, its levy shall be the amount
levied by it for the preceding year.

(ii) For purposes of the proposed property tax notice under section 275.065 and
the property tax statement under section 276.04, for the first year in which the county
implements the provisions of this paragraph, the county auditor shall reduce the county's
levy for the preceding year to reflect any amount levied for water management purposes
under clause (i) included in the county's levy.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2017 and
thereafter.
 new text end

Sec. 14.

Minnesota Statutes 2014, section 276.11, subdivision 1, is amended to read:


Subdivision 1.

Generally.

As soon as practical after the settlement day determined
in section 276.09, the county treasurer shall pay to the treasurer of a town, city, school
district, or special district, on the warrant of the county auditor, all receipts of taxes levied
by the taxing district and deliver up all orders and other evidences of indebtedness of
the taxing district, taking triplicate receipts for them. The treasurer shall file one of the
receipts with the county auditor, and shall return one by mail on the day of its receipt to
the clerk of the town, city, school district, or special district to which payment was made.
The clerk shall keep the receipt in the clerk's office. Upon written request of the taxing
district, to the extent practicable, the county treasurer shall make partial payments of
amounts collected periodically in advance of the next settlement and distribution. A
statement prepared by the county treasurer must accompany each payment. It must state
the years for which taxes included in the payment were collected and, for each year, the
amount of the taxes and any penalties on the tax. Upon written request of a taxing district,
except school districts, the county treasurer shall pay at least 70 percent of the estimated
collection within 30 days after the settlement date determined in section 276.09. Within
deleted text begin sevendeleted text end new text begin eightnew text end business days after the due date, or 28 calendar days after the postmark date
on the envelopes containing real or personal property tax statements, whichever is latest,
the county treasurer shall pay to the treasurer of the school districts 50 percent of the
estimated collections arising from taxes levied by and belonging to the school district,
unless the school district elects to receive 50 percent of the estimated collections arising
from taxes levied by and belonging to the school district after making a proportionate
reduction to reflect any loss in collections as the result of any delay in mailing tax
statements. In that case, 50 percent of those adjusted, estimated collections shall be paid
by the county treasurer to the treasurer of the school district within seven business days of
the due date. The remaining 50 percent of the estimated collections must be paid to the
treasurer of the school district within the next seven business days of the later of the dates
in the preceding sentence, unless the school district elects to receive the remainder of its
estimated collections after a proportionate reduction has been made to reflect any loss in
collections as the result of any delay in mailing tax statements. In that case, the remaining
50 percent of those adjusted, estimated collections shall be paid by the county treasurer to
the treasurer of the school district within 14 days of the due date. The treasurer shall pay
the balance of the amounts collected to a municipal corporation or other body within 60
days after the settlement date determined in section 276.09. After 45 days interest at an
annual rate of eight percent accrues and must be paid to the taxing district. Interest must
be paid upon appropriation from the general revenue fund of the county. If not paid, it
may be recovered by the taxing district, in a civil action.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2017
and thereafter.
 new text end

Sec. 15.

Minnesota Statutes 2014, section 276.111, is amended to read:


276.111 DISTRIBUTIONS AND FINAL YEAR-END SETTLEMENT.

Within deleted text begin sevendeleted text end new text begin eightnew text end business days after October 15, the county treasurer shall pay to
the school districts 50 percent of the estimated collections arising from taxes levied by
and belonging to the school district from the settlement day determined in section 276.09
to October 20. The remaining 50 percent of the estimated tax collections must be paid
to the school district within the next seven business days. Within deleted text begin tendeleted text end new text begin 11new text end business days
after November 15, the county treasurer shall pay to the school district 100 percent of the
estimated collections arising from taxes levied by and belonging to the school districts
from October 20 to November 20.

Within deleted text begin tendeleted text end new text begin 11new text end business days after November 15, the county treasurer shall pay to
each taxing district, except any school district, 100 percent of the estimated collections
arising from taxes levied by and belonging to each taxing district from the settlement day
determined in section 276.09 to November 20.

On or before January 5, the county treasurer shall make full settlement with the
county auditor of all receipts collected from the settlement day determined in section
276.09 to December 31. After subtracting any tax distributions that have been made to
the taxing districts in October and November, the treasurer shall pay to each of the taxing
districts on or before January 25, the balance of the tax amounts collected on behalf of
each taxing district. Interest accrues at an annual rate of eight percent and must be paid to
the taxing district if this final settlement amount is not paid by January 25. Interest must
be paid upon appropriation from the general revenue fund of the county. If not paid, it
may be recovered by the taxing district in a civil action.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2017
and thereafter.
 new text end

Sec. 16.

Minnesota Statutes 2014, section 278.12, is amended to read:


278.12 REFUNDS OF OVERPAYMENT.

If upon final determination the petitioner has paid more than the amount so
determined to be due, judgment shall be entered in favor of the petitioner for such excess,
and upon filing a copy thereof with the county auditor the auditor shall forthwith draw a
warrant upon the county treasurer for the payment thereof; provided that, with the consent
of the petitioner, the county auditor may, in lieu of drawing such warrant, issue to the
petitioner a certificate stating the amount of such judgment, which amount may be used
to apply upon any taxes due or to become due new text begin over a prescribed period of yearsnew text end for the
taxing district or districts whose taxes or assessments are reduced, or their successors in
the event of a reorganization or reincorporation of any such taxing district. In the event the
auditor shall issue a warrant for refund or certificates, the amount thereof shall be charged
to the state and other taxing districts in proportion to the amount of their respective taxes
included in the levy and deduct the same in the subsequent distribution of any tax proceeds
to the state or such taxing districts, and upon receiving any such certificate in payment of
other taxes, the amount thereof shall be distributed to the state and other taxing districts
in proportion to the amount of their respective taxes included in the levy; provided that
if in the judgment the levy of one or more of the districts be found to be illegal, to the
extent that the tax so levied is reduced on account of the illegal levies, the amount to be
charged back shall be charged to the districts and the amount thereof deducted from
any distributions thereafter made to them.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refunds for overpayment of taxes
payable in 2016 and thereafter.
 new text end

Sec. 17.

Minnesota Statutes 2014, section 278.14, subdivision 1, is amended to read:


Subdivision 1.

Applicability.

A county must pay a refund of a mistakenly billed
tax as provided in this section. As used in this section, "mistakenly billed tax" means an
amount of property tax that was billed, to the extent the amount billed exceeds the accurate
tax amount due to a deleted text begin misclassification of the owner's property under section 273.13 or adeleted text end
mathematical error in the calculation of the tax on the owner's property, together with
any penalty or interest paid on that amount. This section applies only to taxes payable
in the current year and the two prior years. As used in this section, "mathematical error"
is limited to an error in:

(1) converting the market value of a property to tax capacity or to a referendum
market value;

(2) application of the tax rate as computed by the auditor under sections 275.08,
subdivisions 1b, 1c, and 1d; 276A.06, subdivisions 4 and 5; and 473F.07, subdivisions 4
and 5, to the property's tax capacity or referendum market value; or

(3) calculation of or eligibility for a credit.

deleted text begin The remedy provided under this section does not apply to a misclassification under
section 273.13 that is due to the failure of the property owner to apply for the correct
classification as required by law.
 deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective based on property taxes payable in
2017 and thereafter.
 new text end

Sec. 18.

Minnesota Statutes 2014, section 279.01, subdivision 1, is amended to read:


Subdivision 1.

Due dates; penalties.

deleted text begin Except as provided in subdivisions 3 to 5,
on May 16 or 21 days after the postmark date on the envelope containing the property
tax statement, whichever is later, a penalty accrues and thereafter is charged upon all
unpaid taxes on real estate on the current lists in the hands of the county treasurer. The
deleted text end new text begin (a) When the taxes against any tract or lot exceed $100, one-half of the amount of tax
due must be paid prior to May 16, and the remaining one-half must be paid prior to the
following October 16. If either tax amount is unpaid as of its due date, anew text end penalty is
new text begin imposed new text end at a rate of two percent on homestead property deleted text begin until May 31deleted text end and fournew text begin percent
on nonhomestead property. If complete payment has not been made by the first day of
the month following either due date, an additional penalty of twonew text end percent on deleted text begin June 1. The
penalty on nonhomestead property is at a rate of four percent until May 31deleted text end new text begin homestead
propertynew text end and deleted text begin eightdeleted text end new text begin fournew text end percent on deleted text begin June 1. This penalty does not accrue until June 1 of
each year, or 21 days after the postmark date on the envelope containing the property
tax statements, whichever is later, on commercial use real property used for seasonal
residential recreational purposes and classified as class 1c or 4c, and on other commercial
use real property classified as class 3a, provided that over 60 percent of the gross income
earned by the enterprise on the class 3a property is earned during the months of May,
June, July, and August. In order for the first half of the tax due on class 3a property to be
paid after May 15 and before June 1, or 21 days after the postmark date on the envelope
containing the property tax statement, whichever is later, without penalty, the owner of
the property must attach an affidavit to the payment attesting to compliance with the
income provision of this subdivisiondeleted text end new text begin nonhomestead property is imposednew text end . Thereafter,
for both homestead and nonhomestead property, on the first day of each new text begin subsequent
new text end month deleted text begin beginning July 1, up to and including October 1 followingdeleted text end new text begin through Decembernew text end , an
additional penalty of one percent for each month accrues and is charged on all such unpaid
taxes provided that deleted text begin if the due date was extended beyond May 15 as the result of any delay
in mailing property tax statements no additional penalty shall accrue if the tax is paid by
the extended due date. If the tax is not paid by the extended due date, then all penalties
that would have accrued if the due date had been May 15 shall be charged. When the taxes
against any tract or lot exceed $100, one-half thereof may be paid prior to May 16 or
21 days after the postmark date on the envelope containing the property tax statement,
whichever is later; and, if so paid, no penalty attaches; the remaining one-half may be
paid at any time prior to October 16 following, without penalty; but, if not so paid, then
a penalty of two percent accrues thereon for homestead property and a penalty of four
percent on nonhomestead property. Thereafter, for homestead property, on the first day of
November an additional penalty of four percent accrues and on the first day of December
following, an additional penalty of two percent accrues and is charged on all such unpaid
taxes. Thereafter, for nonhomestead property, on the first day of November and December
following, an additional penalty of four percent for each month accrues and is charged on
all such unpaid taxes. If one-half of such taxes are not paid prior to May 16 or 21 days
after the postmark date on the envelope containing the property tax statement, whichever
is later, the same may be paid at any time prior to October 16, with accrued penalties to the
date of payment added, and thereupon no penalty attaches to the remaining one-half until
October 16 followingdeleted text end new text begin the penalty must not exceed eight percent in the case of homestead
property, or 12 percent in the case of nonhomestead propertynew text end .

new text begin (b) If the property tax statement was not postmarked prior to April 25, the first
half payment due date in paragraph (a) shall be 21 days from the postmark date of the
property tax statement, and all penalties referenced in paragraph (a) shall be determined
with regard to the later due date.
 new text end

new text begin (c) In the case of a tract or lot with taxes of $100 or less, the due date and penalties
as specified in paragraph (a) or (b) for the first half payment shall apply to the entire
amount of the tax due.
 new text end

new text begin (d) For commercial use real property used for seasonal residential recreational
purposes and classified as class 1c or 4c, and on other commercial use real property
classified as class 3a, provided that over 60 percent of the gross income earned by the
enterprise on the class 3a property is earned during the months of May, June, July, and
August, penalty does not accrue until June 1 of each year. For a class 3a property to
qualify for the later due date, the owner of the property must attach an affidavit to the
payment attesting to compliance with the income requirements of this paragraph.
new text end

new text begin (e) new text end This section applies to payment of personal property taxes assessed against
improvements to leased property, except as provided by section 277.01, subdivision 3.

new text begin (f) new text end A county may provide by resolution that in the case of a property owner that has
multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in
installments as provided in this subdivision.

new text begin (g) new text end The county treasurer may accept payments of more or less than the exact amount
of a tax installment due. Payments must be applied first to the oldest installment that is due
but which has not been fully paid. If the accepted payment is less than the amount due,
payments must be applied first to the penalty accrued for the year or the installment being
paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
payment required as a condition for filing an appeal under section 278.03 or any other law,
nor does it affect the order of payment of delinquent taxes under section 280.39.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2017.
 new text end

Sec. 19.

Minnesota Statutes 2014, section 279.01, subdivision 2, is amended to read:


Subd. 2.

Abatement of penalty.

new text begin (a) new text end The county board may, with the concurrence
of the county treasurer, delegate to the county treasurer the power to abate the penalty
provided for late payment of taxes in the current year. Notwithstanding section 270C.86,
if any county board so elects, the county treasurer may abate the penalty on finding that
the imposition of the penalty would be unjust and unreasonable.

new text begin (b) The county treasurer shall abate the penalty provided for late payment of taxes in
the current year if the property tax payment is delivered by mail to the county treasurer
and the envelope containing the payment is postmarked by the United States Postal
Service within one business day of the due date prescribed under this section, but only if
the property owner requesting the abatement has not previously received an abatement
of penalty for late payment of tax under this paragraph.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2017
and thereafter.
 new text end

Sec. 20.

Minnesota Statutes 2014, section 279.01, subdivision 3, is amended to read:


Subd. 3.

Agricultural property.

deleted text begin (a)deleted text end In the case of class 1b agricultural homestead,
class 2a agricultural homestead property, and class 2a agricultural nonhomestead property,
no penalties shall attach to the second one-half property tax payment as provided in this
section if paid by November 15. Thereafter deleted text begin for class 1b agricultural homestead and class
2a homestead property, on November 16 following, a penalty of six percent shall accrue
and be charged on all such unpaid taxes and on December 1 following, an additional two
percent shall be charged on all such unpaid taxes. Thereafter for class 2a agricultural
nonhomestead property, on November 16 following, a penalty of eight percent shall accrue
and be charged on all such unpaid taxes and on December 1 following, an additional four
percent shall be charged on all such unpaid taxesdeleted text end new text begin , penalties shall attach as provided in
subdivision 1new text end .

If the owner of class 1b agricultural homestead or class 2a agricultural property
receives a consolidated property tax statement that shows only an aggregate of the taxes
and special assessments due on that property and on other property not classified as class
1b agricultural homestead or class 2a agricultural property, the aggregate tax and special
assessments shown due on the property by the consolidated statement will be due on
November 15.

deleted text begin (b) Notwithstanding paragraph (a), for taxes payable in 2010 and 2011, for any class
2b property that was subject to a second-half due date of November 15 for taxes payable
in 2009, the county shall not impose, or if imposed, shall abate penalty amounts in excess
of those that would apply as if the second-half due date were November 15.
 deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2017.
 new text end

Sec. 21.

Minnesota Statutes 2014, section 279.03, subdivision 2, is amended to read:


Subd. 2.

new text begin Rate for new text end composite judgmentnew text begin ; rate for homestead composite judgment,
repurchase of forfeited homestead property, and sale of forfeited propertynew text end .

(a) Except
as provided in paragraph (b), amounts included in composite judgments authorized
by section 279.37, subdivision 1, are subject to interest at the rate calculated under
subdivision 1a. During each calendar year, interest shall accrue on the unpaid balance
of the composite judgment from the time it is confessed until it is paid. The interest rate
established at the time the judgment is confessed is fixed for the duration of that judgment.

new text begin (b) The following amounts are subject to interest as provided in paragraph (c):
 new text end

new text begin (1) amounts included in composite judgments on parcels classified as 1a or 1b
and used as the homestead of the owner;
 new text end

new text begin (2) amounts in contracts for repurchase of property classified as 1a or 1b at the time
of forfeiture or at the time that the repurchase application is approved; and
 new text end

new text begin (3) sales of forfeited property pursuant to section 282.01, subdivision 4.
 new text end

deleted text begin (b) A confession of judgment covering any part of a parcel classified as 1a or 1b,
and used as the homestead of the owner, is subject to interest at the rate provided in
section 279.37, subdivision 2, paragraph (b). This paragraph does not apply to a relative
homestead under section 273.124, subdivision 1, paragraph (c).
 deleted text end

new text begin (c) By October 15 each year the commissioner shall set the interest rate under this
subdivision at the greater of five percent or two percent above the prime rate charged
by banks during the six-month period ending on September 30 of that year, rounded to
the nearest full percent, provided that the rate must not exceed the maximum annum
rate specified under section 279.03, subdivision 1a. By November 1 of each year the
commissioner must certify the rate to the county auditor. The rate of interest becomes
effective on January 1 of the immediately succeeding year. The commissioner's
determination under this subdivision is not a rule subject to the Administrative Procedure
Act in chapter 14, including section 14.386.
 new text end

new text begin (d) For the purposes of this subdivision, "prime rate charged by banks" means the
average predominant prime rate quoted by commercial banks to large businesses, as
determined by the Board of Governors of the Federal Reserve System.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for composite judgments, repurchase
contracts, and sales of forfeited property occurring after January 1, 2017.
 new text end

Sec. 22.

Minnesota Statutes 2014, section 279.37, subdivision 2, is amended to read:


Subd. 2.

Installment payments.

(a) The owner of any such parcel, or any person to
whom the right to pay taxes has been given by statute, mortgage, or other agreement, may
make and file with the county auditor of the county in which the parcel is located a written
offer to pay the current taxes each year before they become delinquent, or to contest
the taxes under chapter 278 and agree to confess judgment for the amount provided, as
determined by the county auditor. By filing the offer, the owner waives all irregularities
in connection with the tax proceedings affecting the parcel and any defense or objection
which the owner may have to the proceedings, and also waives the requirements of any
notice of default in the payment of any installment or interest to become due pursuant to
the composite judgment to be so entered. Unless the property is subject to subdivision 1a,
with the offer, the owner shall (i) tender one-tenth of the amount of the delinquent taxes,
costs, penalty, and interest, and (ii) tender all current year taxes and penalty due at the
time the confession of judgment is entered. In the offer, the owner shall agree to pay the
balance in nine equal installments, with interest as provided in section 279.03, payable
annually on installments remaining unpaid from time to time, on or before December 31
of each year following the year in which judgment was confessed.

(b) deleted text begin For property which qualifies under section 279.03, subdivision 2, paragraph (b),
each year the commissioner shall set the interest rate for offers made under paragraph (a)
at the greater of five percent or two percent above the prime rate charged by banks during
the six-month period ending on September 30 of that year, rounded to the nearest full
percent, provided that the rate must not exceed the maximum annum rate specified under
section 279.03, subdivision 1a. The rate of interest becomes effective on January 1 of the
immediately succeeding year. The commissioner's determination under this subdivision is
not a rule subject to the Administrative Procedure Act in chapter 14, including section
14.386. If a default occurs in the payments under any confessed judgment entered under
this paragraph, the taxes and penalties due are subject to the interest rate specified in section
279.03.deleted text end new text begin Amounts entered in judgment bear interest at the rate provided in section 279.03,
subdivision 1a, unless the parcel is classified as 1a or 1b, and is used as the homestead of
the owner, in which case the rate provided in section 279.03, subdivision 2, shall apply.
A parcel that is classified as relative homestead under section 273.124, subdivision 1,
paragraph (c), is subject to interest at the rate provided in section 279.03, subdivision 1a.
new text end

new text begin (c) Interest shall commence with the date the judgment is entered. During each
calendar year, interest shall accrue on the unpaid balance of the composite judgment
from the time it is confessed until it is paid. The interest rate established at the time the
judgment is confessed is fixed for the duration of that judgment.
 new text end

new text begin (d) If a default occurs in the payments under any confessed judgment, the taxes and
penalties due are subject to the interest rate specified in section 279.03, subdivision 1a,
regardless of the classification of the parcel. new text end For the purposes of this subdivisiondeleted text begin :
deleted text end

deleted text begin (1) the term "prime rate charged by banks" means the average predominant prime
rate quoted by commercial banks to large businesses, as determined by the Board of
Governors of the Federal Reserve System; and
deleted text end

deleted text begin (2)deleted text end "default" means the cancellation of the confession of judgment due to
nonpayment of the current year tax or failure to make any installment payment required by
this confessed judgment within 60 days from the date on which payment was due.

deleted text begin (c) The interest rate established at the time judgment is confessed is fixed for the
duration of the judgment. By October 15 of each year, the commissioner of revenue must
determine the rate of interest as provided under paragraph (b) and, by November 1 of each
year, must certify the rate to the county auditor.
 deleted text end

deleted text begin (d)deleted text end new text begin (e)new text end A qualified property owner eligible to enter into a second confession of
judgment may do so at the interest rate provided in paragraph (b).

deleted text begin (e) Repurchase agreements or contracts for repurchase for properties being
repurchased under section 282.261 are not eligible to receive the interest rate under
paragraph (b).
 deleted text end

(f) The offer must be substantially as follows:

"To the court administrator of the district court of ........... county, I, .....................,
am the owner of the following described parcel of real estate located in ....................
county, Minnesota:

.............................. Upon that real estate there are delinquent taxes for the year ........., and
prior years, as follows: (here insert year of delinquency and the total amount of delinquent
taxes, costs, interest, and penalty). By signing this document I offer to confess judgment
in the sum of $...... and waive all irregularities in the tax proceedings affecting these
taxes and any defense or objection which I may have to them, and direct judgment to be
entered for the amount stated above, minus the sum of $............, to be paid with this
document, which is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and
interest stated above. I agree to pay the balance of the judgment in nine or four equal,
annual installments, with interest as provided in section 279.03, payable annually, on the
installments remaining unpaid. I agree to pay the installments and interest on or before
December 31 of each year following the year in which this judgment is confessed and
current taxes each year before they become delinquent, or within 30 days after the entry of
final judgment in proceedings to contest the taxes under chapter 278.

Dated .............., ......."

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and repurchases occurring
after January 1, 2017.
 new text end

Sec. 23.

Minnesota Statutes 2014, section 282.01, subdivision 4, is amended to read:


Subd. 4.

Sale: method, requirements, effects.

The sale authorized under
subdivision 3 must be conducted by the county auditor at the county seat of the county in
which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may
be conducted in any county facility within the county. The sale must not be for less than
the appraised value except as provided in subdivision 7a. The parcels must be sold for
cash only, unless the county board of the county has adopted a resolution providing for
their sale on terms, in which event the resolution controls with respect to the sale. When
the sale is made on terms other than for cash only (1) a payment of at least ten percent
of the purchase price must be made at the time of purchase, and the balance must be
paid in no more than ten equal annual installments, or (2) the payments must be made
in accordance with county board policy, but in no event may the board require more
than 12 installments annually, and the contract term must not be for more than ten years.
Standing timber or timber products must not be removed from these lands until an amount
equal to the appraised value of all standing timber or timber products on the lands at the
time of purchase has been paid by the purchaser. If a parcel of land bearing standing
timber or timber products is sold at public auction for more than the appraised value, the
amount bid in excess of the appraised value must be allocated between the land and the
timber in proportion to their respective appraised values. In that case, standing timber or
timber products must not be removed from the land until the amount of the excess bid
allocated to timber or timber products has been paid in addition to the appraised value of
the land. The purchaser is entitled to immediate possession, subject to the provisions of
any existing valid lease made in behalf of the state.

deleted text begin For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price
is subject to interest at the rate determined pursuant to section 549.09.deleted text end The unpaid balance
of the purchase price deleted text begin for sales occurring after December 31, 1990,deleted text end is subject to interest
at the rate deleted text begin determineddeleted text end new text begin providednew text end in section 279.03, subdivision deleted text begin 1adeleted text end new text begin 2, paragraph (c)new text end . deleted text begin The
interest rate is subject to change each year on the unpaid balance in the manner provided
for rate changes in section 549.09 or 279.03, subdivision 1a, whichever, is applicable.
Interest on the unpaid contract balance on sales occurring before July 1, 1982, is payable
at the rate applicable to the sale at the time that the sale occurred.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales occurring after January
1, 2017.
 new text end

Sec. 24.

Minnesota Statutes 2014, section 282.261, subdivision 2, is amended to read:


Subd. 2.

Interest rate.

The unpaid balance on any repurchase contract approved
by the county boardnew text begin for property classified as 1a or 1b and used as the homestead of the
owner at the time of forfeiture or at the time that the repurchase application is approvednew text end is
subject to interest at the rate determined in section 279.03, subdivision deleted text begin 1adeleted text end new text begin 2new text end . deleted text begin The interest
rate is subject to change each year on the unpaid balance in the manner provided for rate
changes in section 279.03, subdivision 1a.deleted text end new text begin The unpaid balance on any other repurchase
contract approved by the county board is subject to interest at the rate determined in
section 279.03, subdivision 1a, which is subject to change each year in the manner
provided for in section 279.03, subdivision 1a.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for repurchases occurring after
January 1, 2017.
 new text end

Sec. 25.

Minnesota Statutes 2014, section 473H.09, is amended to read:


473H.09 EARLY TERMINATION.

new text begin Subdivision 1. new text end

new text begin Public emergency. new text end

Termination of an agricultural preserve earlier
than a date derived through application of section 473H.08 may be permitted deleted text begin onlydeleted text end in the
event of a public emergency upon petition from the owner or authority to the governor.
The determination of a public emergency shall be by the governor through executive order
pursuant to sections 4.035 and 12.01 to 12.46. The executive order shall identify the
preserve, the reasons requiring the action and the date of termination.

new text begin Subd. 2. new text end

new text begin Death of owner. new text end

new text begin (a) Within 180 days of the death of an owner, an owner's
spouse, or other qualifying person, the surviving owner may elect to terminate the
agricultural preserve and the covenant allowing the land to be enrolled as an agricultural
preserve by notifying the authority on a form provided by the commissioner of agriculture.
Termination of a covenant under this subdivision must be executed and acknowledged in
the manner required by law to execute and acknowledge a deed.
 new text end

new text begin (b) For purposes of this subdivision, the following definitions apply:
 new text end

new text begin (1) "qualifying person" includes a partner, shareholder, trustee for a trust that the
decedent was the settlor or a beneficiary of, or member of an entity permitted to own
agricultural land and engage in farming under section 500.24 that owned the agricultural
preserve; and
new text end

new text begin (2) "surviving owner" includes the executor of the estate of the decedent, the trustee
for a trust that the decedent was the settlor or a beneficiary of, or an entity permitted to
own farm land under section 500.24 of which the decedent was a partner, shareholder, or
member.
 new text end

new text begin (c) When an agricultural preserve is terminated under this subdivision, the property
is subject to additional taxes in an amount equal to 50 percent of the taxes actually
levied against the property for the current taxes payable year. The additional taxes are
extended against the property on the tax list for taxes payable in the current year. The
additional taxes must be distributed among the jurisdictions levying taxes on the property
in proportion to the current year's taxes.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016.
 new text end

Sec. 26.

Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243,
article 6, section 9, Laws 2000, chapter 490, article 6, section 15, Laws 2008, chapter 154,
article 2, section 30, and Laws 2013, chapter 143, article 4, section 33, is amended to read:


Sec. 3. TAX; PAYMENT OF EXPENSES.

(a) The tax levied by the hospital district under Minnesota Statutes, section 447.34,
must not be levied at a rate that exceeds the amount authorized to be levied under that
section. The proceeds of the tax may be used for all purposes of the hospital district,
except as provided in paragraph (b).

(b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used by
the Cook ambulance service and the Orr ambulance service for the purpose of:

(1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance
service;

(2) attached and portable equipment for use in and for the ambulances; and

(3) parts and replacement parts for maintenance and repair of the ambulancesnew text begin , and
administrative, operation, or salary expenses for the Cook ambulance service and the
Orr ambulance servicenew text end .

deleted text begin The money may not be used for administrative, operation, or salary expenses.
 deleted text end

(c) The part of the levy referred to in paragraph (b) must be administered by the
Cook Hospital and passed on in equal amounts directly to the Cook area ambulance
service board and the city of Orr to be used for the purposes in paragraph (b).

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

Laws 1996, chapter 471, article 3, section 51, is amended to read:


Sec. 51. RECREATION LEVY FOR SAWYER BY CARLTON COUNTY.

deleted text begin Subdivision 1. deleted text end

deleted text begin Levy authorized. deleted text end

Notwithstanding other law to the contrary, the
Carlton county board of commissioners may levy in and for the unorganized township of
Sawyer an amount up to deleted text begin $1,500deleted text end new text begin $2,000new text end annually for recreational purposesdeleted text begin , beginning with
taxes payable in 1997 and ending with taxes payable in 2006deleted text end .

deleted text begin Subd. 2. deleted text end

deleted text begin Effective date. deleted text end

deleted text begin This section is effective June 1, 1996, without local
approval.
 deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the Carlton County
Board of Commissioners and its chief clerical officer comply with section 645.021,
subdivisions 2 and 3, and applies to taxes payable in 2017.
 new text end

Sec. 28.

Laws 2009, chapter 88, article 2, section 46, subdivision 1, as amended by
Laws 2013, chapter 143, article 4, section 36, is amended to read:


Subdivision 1.

Agreement.

The city of Cloquet and Perch Lake Township, by
resolution of each of their governing bodies, may establish the Cloquet Area Fire and
Ambulance new text begin Special new text end Taxing District for the purpose of providing fire or ambulance
services, or both, throughout the district. In this section, "municipality" means home rule
charter and statutory cities, towns, and Indian tribes. The district may exercise all the
powers relating to fire and ambulance services of the municipalities that receive fire or
ambulance services, or both, from the district. Upon application, any other municipality
may join the district with the agreement of the municipalities that comprise the district at
the time of its application to join.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective in Cloquet and Perch Lake Township
the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of each.
 new text end

Sec. 29.

Laws 2009, chapter 88, article 2, section 46, subdivision 2, is amended to read:


Subd. 2.

Board.

The Cloquet Area Fire and Ambulance new text begin Special new text end Taxing District
Board is governed by a board made up initially of one or more elected officials of the
governing body of each participating municipality in the proportions set out in the
establishing resolution, subject to change as provided in the district's charter, if any, or
in the district's bylaws. Each municipality's representatives serve at the pleasure of that
municipality's governing body.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective in Cloquet and Perch Lake Township
the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of each.
 new text end

Sec. 30.

Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by
Laws 2013, chapter 143, article 4, section 37, is amended to read:


Subd. 3.

Tax.

new text begin (a) new text end The district board may impose a property tax on taxable property
as provided in this subdivisionnew text begin to pay the costs of providing fire or ambulance services,
or both, throughout the districtnew text end . The board shall annually determine the total amount of
the levy that is attributable to the cost of providing fire services and the cost of providing
ambulance services within the primary service area. For those municipalities that only
receive ambulance services, the costs for the provision of ambulance services shall
be levied against taxable property within those municipalities at a rate necessary not to
exceed 0.019 percent of the estimated market value. For those municipalities that receive
both fire and ambulance services, the tax shall be imposed at a rate that does not exceed
0.2835 percent of estimated market value.

new text begin (b) new text end When a member municipality opts to receive fire service from the district or
an additional municipality becomes a member of the district, the cost of providing fire
services to that community shall be determined by the board and added to the maximum
levy amount.

new text begin (c) new text end Each county auditor of a county that contains a municipality subject to the tax
under this section must collect the tax and pay it to the Fire and Ambulance Special Taxing
District. The district may also impose other fees or charges as allowed by law for the
provision of fire and ambulance services.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective in Cloquet and Perch Lake Township
the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of each.
 new text end

Sec. 31.

Laws 2009, chapter 88, article 2, section 46, subdivision 4, is amended to read:


Subd. 4.

Public indebtedness.

new text begin (a) new text end The district may incur debt in the manner
provided for a municipality by Minnesota Statutes, chapter 475, new text begin and may issue certificates
of indebtedness or capital notes in the manner provided for a city by Minnesota Statutes,
section 412.301, new text end when necessary to accomplish its dutiesnew text begin , except that the district may
not incur debt or issue obligations until first obtaining the approval of a majority of the
electors voting on the question of issuing the obligation. The debt service for debt used to
finance capital costs for ambulance service shall be levied against taxable property within
the municipalities in the primary service area. The debt service for debt used to finance
capital costs for fire service shall be levied against taxable property within municipalities
receiving fire services. The district board shall pledge its full faith and credit and taxing
power without limitation as to rate or amount for the payment of the district's debtnew text end .

new text begin (b) For purposes of this subdivision, "municipality" has the definition given in
Minnesota Statutes, sections 475.51, subdivision 2, and 475.521, subdivision 1, paragraph
(c).
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective in Cloquet and Perch Lake Township
the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of each.
 new text end

Sec. 32.

Laws 2009, chapter 88, article 2, section 46, subdivision 5, is amended to read:


Subd. 5.

Withdrawal.

Notice of intent to withdraw from participation in the district
may be given only in the month of January, with a minimum of twelve months notice of
intent to withdraw. Withdrawal becomes effective for taxes levied new text begin pursuant to subdivision
3 new text end in the year when the notice is given. new text begin A property tax on taxable property located in a
withdrawing municipality that has been levied by the district pursuant to subdivision 4
remains in effect until the obligations outstanding on the date of withdrawal are satisfied,
including any property tax levied in connection with refunding such obligations. new text end The
district and its members may new text begin also new text end develop and agree upon new text begin other new text end continuing obligations
after withdrawal of a municipality.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective in Cloquet and Perch Lake Township
the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of each.
 new text end

Sec. 33. new text begin 2016 TOWNSHIP BOARD APPEALS AND EQUALIZATION COURSE
WAIVER.
new text end

new text begin If a city or town that conducts local board of appeal and equalization meetings
certified by February 1, 2016, that it was in compliance with the requirements of
Minnesota Statutes, section 274.014, subdivision 2, but no member of the local board
who has attended an appeal and equalization course training within the preceding four
years attended the local board's meeting for 2016, that local board shall have its powers
reinstated for the 2017 assessment by resolution of the governing body of the city or
town, and by certifying it is in compliance with the requirements of Minnesota Statutes,
section 274.014, subdivision 2. The resolution and certification must be provided to
the county assessor by February 1, 2017.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 34. new text begin TOWN OF TOFTE; MUNICIPAL HOUSING.
new text end

new text begin (a) Notwithstanding the provisions of Laws 1988, chapter 516, and Laws 1988,
chapter 719, article 19, section 27, the town of Tofte may own and operate within its
boundary up to 12 units of housing for individuals over 55 years of age or families with
one member of the household that is over 55 years of age, or projects that provide housing
for individuals or families with incomes not greater than 120 percent of the median
family income, as estimated by the United States Department of Housing and Urban
Development for the nonmetropolitan county in which the town of Tofte is located.
 new text end

new text begin (b) The town of Tofte shall have the powers of a city under Minnesota Statutes,
chapter 462C, and the powers of an authority under Minnesota Statutes, sections 469.001
to 469.047, with respect to this section. Upon the approval of the town board, the town of
Tofte may levy the tax described in Minnesota Statutes, section 469.033, subdivision 6.
 new text end

new text begin (c) Nothing in this section shall limit the power of the Cook County/Grand Marais
Joint Economic Development Authority to exercise jurisdiction within the town of Tofte.
The authority to undertake new projects under this section shall expire on June 30, 2017.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after compliance by
the governing body of the town of Tofte with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
 new text end

Sec. 35. new text begin SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL
ASSESSMENT.
new text end

new text begin Any real or personal property acquired, owned, leased, controlled, used, or occupied
by the city of St. Paul for the primary purpose of providing a stadium for a Major League
Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied for
public, governmental, and municipal purposes, and is exempt from ad valorem taxation by
the state or any political subdivision of the state, provided that the properties are subject to
special assessments levied by a political subdivision for a local improvement in amounts
proportionate to and not exceeding the special benefit received by the properties from the
improvement. In determining the special benefit received by the properties, no possible
use of any of the properties in any manner different from their intended use for providing a
Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota
Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a
lease or use agreement between the city and another person for uses related to the purposes
of the operation of the stadium and related parking facilities is exempt from taxation
regardless of the length of the lease or use agreement. This section, insofar as it provides
an exemption or special treatment, does not apply to any real property that is leased for
residential, business, or commercial development or other purposes different from those
necessary to the provision and operation of the stadium.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the St. Paul City
Council and compliance with Minnesota Statutes, section 645.021.
 new text end

Sec. 36. new text begin OPTIONAL CANCELLATION OF TAX FORFEITURE FOR CERTAIN
BUILDINGS; ST. LOUIS COUNTY.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Building PIN" means a parcel identification number that is assigned to a
building and does not include the land upon which the building is located; and
 new text end

new text begin (c) "Land PIN" means a parcel identification number that is assigned to land upon
which a building associated with a building PIN is located.
 new text end

new text begin Subd. 2. new text end

new text begin Optional cancellation of tax forfeiture for buildings with building PINs.
 new text end

new text begin Notwithstanding any law to the contrary, if any building associated with a building PIN
and located in St. Louis County forfeits or has forfeited to the state of Minnesota before,
on, or after the date of enactment of this section because of nonpayment of delinquent
property taxes, special assessments, penalties, interest, or costs, the county auditor of St.
Louis County may, with approval from the county board and the commissioner of revenue:
 new text end

new text begin (1) cancel the certificate of forfeiture and set aside the forfeiture without reinstating
the unpaid property taxes, special assessments, penalties, interest, or costs; and
 new text end

new text begin (2) combine the building PIN with its associated land PIN. When this occurs, the
land PIN is the only surviving parcel identification number, and includes both the building
and the land upon which the building is located.
 new text end

new text begin Subd. 3. new text end

new text begin Cancellation of tax forfeiture; taxation through date of cancellation.
 new text end

new text begin Notwithstanding any law to the contrary, if the county auditor of St. Louis County cancels
a certificate of forfeiture and sets aside a forfeiture in accordance with subdivision 2,
the affected building is not subject to taxation from the date of forfeiture through the
date of cancellation.
 new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin $1,000,000 in fiscal year 2017 only is appropriated from
the general fund to the commissioner of revenue for a grant to St. Louis County that shall
be paid on July 1, 2016. The county may only use the grant to remove any building,
upon the request of the landowner, after the county has complied with the provisions of
subdivision 2.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 37. new text begin LAKE MILLE LACS AREA PROPERTY TAX ABATEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Abatements authorized. new text end

new text begin (a) Notwithstanding Minnesota Statutes,
section 375.192, the county boards of Aitkin, Crow Wing, and Mille Lacs Counties may
grant an abatement of local property taxes for taxes payable in 2016 provided that:
 new text end

new text begin (1) the property is classified as 1c, 3a (excluding utility real and personal property),
4c(1), 4c(10), or 4c(11);
 new text end

new text begin (2) on or before February 1, 2017, the taxpayer submits a written application to the
county assessor in the county in which abatement is sought; and
 new text end

new text begin (3) the taxpayer meets qualification requirements established in subdivision 3.
 new text end

new text begin Subd. 2. new text end

new text begin Appeals. new text end

new text begin An appeal may not be taken to the Tax Court from any order
of the county board made pursuant to the exercise of the discretionary authority granted
in this section.
 new text end

new text begin Subd. 3. new text end

new text begin Qualification requirements. new text end

new text begin To qualify for abatements under this section,
a taxpayer must:
 new text end

new text begin (1) be located within one of the following municipalities surrounding Lake Mille
Lacs:
 new text end

new text begin (i) in Crow Wing County, the city of Garrison, township of Garrison, or township
of Roosevelt;
 new text end

new text begin (ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township
of Malmo, or township of Lakeside; or
 new text end

new text begin (iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township
of East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;
 new text end

new text begin (2) document a reduction in gross receipts of five percent or greater between two
successive calendar years beginning in 2010 or later; and
 new text end

new text begin (3) be a business in one of the following industries, as defined within the North
American Industry Classification System: accommodation, restaurants, bars, amusement
and recreation, food and beverages retail, sporting goods, miscellaneous retail, general
retail, museums, historical sites, health and personal care, gas station, general merchandise,
business and professional membership, movies, or nonstore retailer, as determined by the
county in consultation with the commissioner of employment and economic development.
 new text end

new text begin Subd. 4. new text end

new text begin State general levy in relief area. new text end

new text begin The counties of Aitkin, Crow Wing, and
Mille Lacs must refund the state general levy levied upon a property classified as 1c, 3a
(excluding utility real and personal property), or 4c(1) that is located in the area described
by subdivision 3, clause (1), for taxes payable in 2016. No refund may be issued to a
taxpayer whose property taxes are delinquent.
 new text end

new text begin Subd. 5. new text end

new text begin Certification and transfer of funds. new text end

new text begin (a) By April 1, 2017, a county
granting a refund as required under subdivision 4 must certify the total amount of state
general tax refunded to Mille Lacs County and the commissioner of revenue. By May 1,
2017, Mille Lacs County must transfer an amount equal to the amount certified under this
paragraph to the county making the certification.
 new text end

new text begin (b) By April 1, 2017, a county that has received an application for an abatement
authorized under subdivision 1 must certify to Mille Lacs County the total amount of
abatements for which applications have been received and approved. By May 1, 2017,
Mille Lacs County must transfer an amount equal to the amount certified under this
paragraph to the county making the certification. If the amount appropriated under
subdivision 6, minus the amount transferred under paragraph (a), is not sufficient to make
the transfer required under this paragraph, Mille Lacs County must reduce the amount
transferred to each county by a uniform percentage. By June 30, 2017, the county must
issue refunds of local property tax amounts to qualified properties, in proportion to the
amount received from Mille Lacs County. No refund may be issued to a taxpayer whose
property taxes are delinquent.
 new text end

new text begin (c) By August 1, 2017, Mille Lacs County must calculate the amount transferred
under paragraphs (a) and (b), and subtract that amount from $1,400,000 to obtain the
ongoing economic relief distribution amount, if any. This amount must be transferred to
the counties of Aitkin, Crow Wing, and Mille Lacs in proportion to the amounts certified
by each county under paragraphs (a) and (b). A county receiving a transfer under this
paragraph must use the funds received to provide abatements to business properties under
economic hardship for taxes payable in 2017, and each year thereafter until a county's
share of the ongoing economic relief distribution amount is exhausted.
 new text end

new text begin Subd. 6. new text end

new text begin Commissioner of revenue; appropriation. new text end

new text begin $1,400,000 in fiscal year 2017
is appropriated from the general fund to the commissioner of revenue for transfer to
Mille Lacs County to make the transfers required under subdivision 5. This is a onetime
appropriation.
 new text end

new text begin Subd. 7. new text end

new text begin Report to legislature. new text end

new text begin The commissioner of revenue must make a
written report to the chairs and ranking minority members of the legislative committees
with jurisdiction over taxes stating the amount of abatements and refunds given under
this section by taxing jurisdictions by February 1, 2018. The counties must provide the
commissioner with the information necessary to make the report.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 38. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 272.02, subdivision 23, new text end new text begin is repealed.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2017 and
thereafter.
 new text end

ARTICLE 2

AIDS AND CREDITS

Section 1.

new text begin [273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT.
 new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin All class 2a, 2b, and 2c property under section 273.13,
subdivision 23, other than property consisting of the house, garage, and immediately
surrounding one acre of land of an agricultural homestead, is eligible to receive the credit
under this section.
 new text end

new text begin Subd. 2. new text end

new text begin Credit amount. new text end

new text begin For each qualifying property, the school building bond
agricultural credit is equal to 40 percent of the property's eligible net tax capacity
multiplied by the school debt tax rate determined under section 275.08, subdivision 1b.
 new text end

new text begin Subd. 3. new text end

new text begin Credit reimbursements. new text end

new text begin The county auditor shall determine the tax
reductions allowed under this section within the county for each taxes payable year and
shall certify that amount to the commissioner of revenue as a part of the abstracts of tax
lists submitted under section 275.29. Any prior year adjustments shall also be certified on
the abstracts of tax lists. The commissioner shall review the certifications for accuracy,
and may make such changes as are deemed necessary, or return the certification to the
county auditor for correction. The credit under this section must be used to reduce the
school district net tax capacity-based property tax as provided in section 273.1393.
 new text end

new text begin Subd. 4. new text end

new text begin Payment. new text end

new text begin The commissioner of revenue shall certify the total of the tax
reductions granted under this section for each taxes payable year within each school
district to the commissioner of education, who shall pay the reimbursement amounts to
each school district as provided in section 273.1392.
 new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to make the payments required by this
section is annually appropriated from the general fund to the commissioner of education.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2017.
 new text end

Sec. 2.

Minnesota Statutes 2014, section 273.1392, is amended to read:


273.1392 PAYMENT; SCHOOL DISTRICTS.

The amounts of bovine tuberculosis credit reimbursements under section 273.113;
conservation tax credits under section 273.119; disaster or emergency reimbursement
under sections 273.1231 to 273.1235; deleted text begin homestead anddeleted text end agricultural credits under deleted text begin section
deleted text end new text begin sectionsnew text end 273.1384new text begin and 273.1387new text end ; aids and credits under section 273.1398; enterprise zone
property credit payments under section 469.171; and metropolitan agricultural preserve
reduction under section 473H.10 for school districts, shall be certified to the Department
of Education by the Department of Revenue. The amounts so certified shall be paid
according to section 127A.45, subdivisions 9 and 13.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2017.
 new text end

Sec. 3.

Minnesota Statutes 2014, section 273.1393, is amended to read:


273.1393 COMPUTATION OF NET PROPERTY TAXES.

Notwithstanding any other provisions to the contrary, "net" property taxes are
determined by subtracting the credits in the order listed from the gross tax:

(1) disaster credit as provided in sections 273.1231 to 273.1235;

(2) powerline credit as provided in section 273.42;

(3) agricultural preserves credit as provided in section 473H.10;

(4) enterprise zone credit as provided in section 469.171;

(5) disparity reduction credit;

(6) conservation tax credit as provided in section 273.119;

(7) new text begin the school bond credit, as provided in section 273.1387;
new text end

new text begin (8) new text end agricultural credit as provided in section 273.1384;

deleted text begin (8)deleted text end new text begin (9)new text end taconite homestead credit as provided in section 273.135;

deleted text begin (9)deleted text end new text begin (10)new text end supplemental homestead credit as provided in section 273.1391; and

deleted text begin (10)deleted text end new text begin (11)new text end the bovine tuberculosis zone credit, as provided in section 273.113.

The combination of all property tax credits must not exceed the gross tax amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2017.
 new text end

Sec. 4.

Minnesota Statutes 2014, section 275.065, subdivision 3, is amended to read:


Subd. 3.

Notice of proposed property taxes.

(a) The county auditor shall prepare
and the county treasurer shall deliver after November 10 and on or before November 24
each year, by first class mail to each taxpayer at the address listed on the county's current
year's assessment roll, a notice of proposed property taxes. Upon written request by
the taxpayer, the treasurer may send the notice in electronic form or by electronic mail
instead of on paper or by ordinary mail.

(b) The commissioner of revenue shall prescribe the form of the notice.

(c) The notice must inform taxpayers that it contains the amount of property taxes
each taxing authority proposes to collect for taxes payable the following year. In the case of
a town, or in the case of the state general tax, the final tax amount will be its proposed tax.
The notice must clearly state for each city that has a population over 500, county, school
district, regional library authority established under section 134.201, and metropolitan
taxing districts as defined in paragraph (i), the time and place of a meeting for each taxing
authority in which the budget and levy will be discussed and public input allowed, prior to
the final budget and levy determination. The taxing authorities must provide the county
auditor with the information to be included in the notice on or before the time it certifies
its proposed levy under subdivision 1. The public must be allowed to speak at that
meeting, which must occur after November 24 and must not be held before 6:00 p.m. It
must provide a telephone number for the taxing authority that taxpayers may call if they
have questions related to the notice and an address where comments will be received by
mail, except that no notice required under this section shall be interpreted as requiring the
printing of a personal telephone number or address as the contact information for a taxing
authority. If a taxing authority does not maintain public offices where telephone calls can
be received by the authority, the authority may inform the county of the lack of a public
telephone number and the county shall not list a telephone number for that taxing authority.

(d) The notice must state for each parcel:

(1) the market value of the property as determined under section 273.11, and used
for computing property taxes payable in the following year and for taxes payable in the
current year as each appears in the records of the county assessor on November 1 of the
current year; and, in the case of residential property, whether the property is classified as
homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
which the market values apply and that the values are final values;

(2) the items listed below, shown separately by county, city or town, and state
general tax, agricultural homestead credit under section 273.1384, new text begin school building bond
agricultural credit under section 273.1387, new text end voter approved school levy, other local school
levy, and the sum of the special taxing districts, and as a total of all taxing authorities:

(i) the actual tax for taxes payable in the current year; and

(ii) the proposed tax amount.

If the county levy under clause (2) includes an amount for a lake improvement
district as defined under sections 103B.501 to 103B.581, the amount attributable for that
purpose must be separately stated from the remaining county levy amount.

In the case of a town or the state general tax, the final tax shall also be its proposed
tax unless the town changes its levy at a special town meeting under section 365.52. If a
school district has certified under section 126C.17, subdivision 9, that a referendum will
be held in the school district at the November general election, the county auditor must
note next to the school district's proposed amount that a referendum is pending and that, if
approved by the voters, the tax amount may be higher than shown on the notice. In the
case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be
listed separately from the remaining amount of the city's levy. In the case of the city of
St. Paul, the levy for the St. Paul Library Agency must be listed separately from the
remaining amount of the city's levy. In the case of Ramsey County, any amount levied
under section 134.07 may be listed separately from the remaining amount of the county's
levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax
under chapter 276A or 473F applies, the proposed tax levy on the captured value or the
proposed tax levy on the tax capacity subject to the areawide tax must each be stated
separately and not included in the sum of the special taxing districts; and

(3) the increase or decrease between the total taxes payable in the current year and
the total proposed taxes, expressed as a percentage.

For purposes of this section, the amount of the tax on homesteads qualifying under
the senior citizens' property tax deferral program under chapter 290B is the total amount
of property tax before subtraction of the deferred property tax amount.

(e) The notice must clearly state that the proposed or final taxes do not include
the following:

(1) special assessments;

(2) levies approved by the voters after the date the proposed taxes are certified,
including bond referenda and school district levy referenda;

(3) a levy limit increase approved by the voters by the first Tuesday after the first
Monday in November of the levy year as provided under section 275.73;

(4) amounts necessary to pay cleanup or other costs due to a natural disaster
occurring after the date the proposed taxes are certified;

(5) amounts necessary to pay tort judgments against the taxing authority that become
final after the date the proposed taxes are certified; and

(6) the contamination tax imposed on properties which received market value
reductions for contamination.

(f) Except as provided in subdivision 7, failure of the county auditor to prepare or
the county treasurer to deliver the notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the tax levy.

(g) If the notice the taxpayer receives under this section lists the property as
nonhomestead, and satisfactory documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the homestead classification in that
assessment year, the assessor shall reclassify the property to homestead for taxes payable
in the following year.

(h) In the case of class 4 residential property used as a residence for lease or rental
periods of 30 days or more, the taxpayer must either:

(1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
renter, or lessee; or

(2) post a copy of the notice in a conspicuous place on the premises of the property.

The notice must be mailed or posted by the taxpayer by November 27 or within
three days of receipt of the notice, whichever is later. A taxpayer may notify the county
treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
which the notice must be mailed in order to fulfill the requirements of this paragraph.

(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
districts" means the following taxing districts in the seven-county metropolitan area that
levy a property tax for any of the specified purposes listed below:

(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325,
473.446, 473.521, 473.547, or 473.834;

(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672;
and

(3) Metropolitan Mosquito Control Commission under section 473.711.

For purposes of this section, any levies made by the regional rail authorities in the
county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
398A shall be included with the appropriate county's levy.

(j) The governing body of a county, city, or school district may, with the consent
of the county board, include supplemental information with the statement of proposed
property taxes about the impact of state aid increases or decreases on property tax
increases or decreases and on the level of services provided in the affected jurisdiction.
This supplemental information may include information for the following year, the current
year, and for as many consecutive preceding years as deemed appropriate by the governing
body of the county, city, or school district. It may include only information regarding:

(1) the impact of inflation as measured by the implicit price deflator for state and
local government purchases;

(2) population growth and decline;

(3) state or federal government action; and

(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.

The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2017.
 new text end

Sec. 5.

Minnesota Statutes 2014, section 275.07, subdivision 2, is amended to read:


Subd. 2.

School district deleted text begin in more than one countydeleted text end new text begin levies; special requirementsnew text end .

new text begin (a)
new text end In school districts lying in more than one county, the clerk shall certify the tax levied to the
auditor of the county in which the administrative offices of the school district are located.

new text begin (b) The district must identify the portion of the school district levy that is levied for
debt service at the time the levy is certified under this section. For the purposes of this
paragraph, "levied for debt service" means levies authorized under sections 123B.53,
123B.535, and 123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt
excess levy reductions under section 475.61, subdivision 4, excluding debt service
amounts necessary for repayment of other postemployment benefits under section 475.52,
subdivision 6.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2017.
 new text end

Sec. 6.

Minnesota Statutes 2014, section 275.08, subdivision 1b, is amended to read:


Subd. 1b.

Computation of tax rates.

new text begin (a) new text end The amounts certified to be levied against
net tax capacity under section 275.07 by an individual local government unit shall be
divided by the total net tax capacity of all taxable properties within the local government
unit's taxing jurisdiction. The resulting ratio, the local government's local tax rate,
multiplied by each property's net tax capacity shall be each property's net tax capacity tax
for that local government unit before reduction by any credits.

new text begin (b) The auditor must also determine the school debt tax rate for each school district
equal to (1) the school debt service levy certified under section 275.07, subdivision 2,
divided by (2) the total net tax capacity of all taxable property within the district.
 new text end

new text begin (c) new text end Any amount certified to the county auditor to be levied against market value shall
be divided by the total referendum market value of all taxable properties within the taxing
district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by
each property's referendum market value shall be each property's new referendum tax
before reduction by any credits. For the purposes of this subdivision, "referendum market
value" means the market value as defined in section 126C.01, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2017.
 new text end

Sec. 7.

Minnesota Statutes 2014, section 276.04, subdivision 2, is amended to read:


Subd. 2.

Contents of tax statements.

(a) The treasurer shall provide for the printing
of the tax statements. The commissioner of revenue shall prescribe the form of the property
tax statement and its contents. The tax statement must not state or imply that property tax
credits are paid by the state of Minnesota. The statement must contain a tabulated statement
of the dollar amount due to each taxing authority and the amount of the state tax from the
parcel of real property for which a particular tax statement is prepared. The dollar amounts
attributable to the county, the state tax, the voter approved school tax, the other local school
tax, the township or municipality, and the total of the metropolitan special taxing districts
as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated.
The amounts due all other special taxing districts, if any, may be aggregated except that
any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate
line directly under the appropriate county's levy. If the county levy under this paragraph
includes an amount for a lake improvement district as defined under sections 103B.501
to 103B.581, the amount attributable for that purpose must be separately stated from the
remaining county levy amount. In the case of Ramsey County, if the county levy under this
paragraph includes an amount for public library service under section 134.07, the amount
attributable for that purpose may be separated from the remaining county levy amount.
The amount of the tax on homesteads qualifying under the senior citizens' property tax
deferral program under chapter 290B is the total amount of property tax before subtraction
of the deferred property tax amount. The amount of the tax on contamination value
imposed under sections 270.91 to 270.98, if any, must also be separately stated. The dollar
amounts, including the dollar amount of any special assessments, may be rounded to the
nearest even whole dollar. For purposes of this section whole odd-numbered dollars may
be adjusted to the next higher even-numbered dollar. The amount of market value excluded
under section 273.11, subdivision 16, if any, must also be listed on the tax statement.

(b) The property tax statements for manufactured homes and sectional structures
taxed as personal property shall contain the same information that is required on the
tax statements for real property.

(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:

(1) the property's estimated market value under section 273.11, subdivision 1;

(2) the property's homestead market value exclusion under section 273.13,
subdivision 35;

(3) the property's taxable market value under section 272.03, subdivision 15;

(4) the property's gross tax, before credits;

(5) for deleted text begin homesteaddeleted text end agricultural properties, the deleted text begin creditdeleted text end new text begin creditsnew text end under deleted text begin sectiondeleted text end new text begin sectionsnew text end
273.1384new text begin and 273.1387new text end ;

(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of
credit received under section 273.135 must be separately stated and identified as "taconite
tax relief"; and

(7) the net tax payable in the manner required in paragraph (a).

(d) If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current
year, and encouraging taxpayers to attend the hearings. If the county allows notices to
be included in the envelope containing the property tax statement, and if more than
one taxing district relative to a given property decides to include a notice with the tax
statement, the county treasurer or auditor must coordinate the process and may combine
the information on a single announcement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2017.
 new text end

Sec. 8.

new text begin [477A.0126] REIMBURSEMENT OF COUNTY AND TRIBES FOR
CERTAIN OUT-OF-HOME PLACEMENT.
 new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin When used in this section, "out-of-home placement"
means 24-hour substitute care for an Indian child as defined by section 260C.007,
subdivision 21, placed under the Indian Child Welfare Act (ICWA) and chapter 260C,
away from the child's parent or guardian and for whom the county social services agency
or county correctional agency has been assigned responsibility for the child's placement
and care, which includes placement in foster care under section 260C.007, subdivision
18, and a correctional facility pursuant to a court order.
 new text end

new text begin Subd. 2. new text end

new text begin Determination of nonfederal share of costs. new text end

new text begin (a) By January 1, 2017, each
county shall report the following information to the commissioners of human services and
corrections: (1) the separate amounts paid out of its social service agency and its corrections
budget for out-of-home placement of children under the ICWA in calendar years 2013,
2014, and 2015; and (2) the number of case days associated with the expenditures from
each budget. By March 15, 2017, the commissioner of human services, in consultation with
the commissioner of corrections, shall certify to the commissioner of revenue and to the
legislative committees responsible for local government aids and out-of-home placement
funding, whether the data reported under this subdivision accurately reflects total
expenditures by counties for out-of-home placement costs of children under the ICWA.
 new text end

new text begin (b) By January 1, 2019, and each January 1 thereafter, each county shall report to the
commissioners of human services and corrections the separate amounts paid out of its
social service agency and its corrections budget for out-of-home placement of children
under the ICWA in the calendar years two years before the current calendar year along
with the number of case days associated with the expenditures from each budget.
 new text end

new text begin (c) Until the commissioner of human services develops another mechanism for
collecting and verifying data on out-of-home placements of children under the ICWA, and
the legislature authorizes the use of that data, the data collected under this subdivision
must be used to calculate payments under subdivision 3. The commissioner of human
services shall certify the nonfederal out-of-home placement costs for the three prior
calendar years for each county to the commissioner of revenue by June 1 of the year
prior to the aid payment.
 new text end

new text begin Subd. 3. new text end

new text begin Aid payments to counties. new text end

new text begin For aids payable in calendar year 2018 and
thereafter, the commissioner of revenue shall reimburse each county for 100 percent of
the nonfederal share of the cost of out-of-home placement of children under the ICWA
provided the commissioner of human services, in consultation with the commissioner
of corrections, certifies to the commissioner of revenue that accurate data is available
to make the aid determination under this section. The amount of reimbursement is the
county's average nonfederal share of the cost for out-of-home placement of children
under the ICWA for the most recent three calendar years for which data is available.
The commissioner shall pay the aid under the schedule used for local government aid
payments under section 477A.015.
 new text end

new text begin Subd. 4. new text end

new text begin Aid payments to tribes. new text end

new text begin (a) By January 1, 2017, and each year
thereafter, each tribe must certify to the commissioner of revenue the amount of federal
reimbursement received by the tribe for out-of-home placement of children under the
ICWA for the immediately preceding three calendar years. The commissioner of revenue
shall prescribe the format of the certification. For purposes of this section, "tribe" has the
meaning provided in section 260.755, subdivision 12.
 new text end

new text begin (b) The amount of reimbursement to the tribe shall be the greater of: (1) five
percent of the average reimbursement amount received from the federal government for
out-of-home placement costs for the most recent three calendar years; or (2) $200,000.
The commissioner shall pay the aid under this section under the schedule used for local
government aid payments under section 477A.015.
 new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay aid under this section is
annually appropriated to the commissioner of revenue from the general fund.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2018.
 new text end

Sec. 9.

Minnesota Statutes 2015 Supplement, section 477A.015, is amended to read:


477A.015 PAYMENT DATES.

new text begin (a) new text end The commissioner of revenue shall make the payments of local government aid
to affected taxing authorities in two installments on July 20 and December 26 annually.

new text begin (b) Notwithstanding paragraph (a), for aids payable in 2017 only, the commissioner
of revenue shall make payments of the aid payable under section 477A.013, subdivision
9, in three installments as follows: (1) 6.5 percent of the aid shall be paid on June 15,
2017; (2) 43.5 percent of the aid shall be paid on July 20, 2017; and (3) 50 percent of the
aid shall be paid on December 26, 2017.
new text end

new text begin (c) new text end When the commissioner of public safety determines that a local government has
suffered financial hardship due to a natural disaster, the commissioner of public safety
shall notify the commissioner of revenue, who shall make payments of aids under sections
477A.011 to 477A.014, which are otherwise due on December 26, as soon as is practical
after the determination is made but not before July 20.

new text begin (d) new text end The commissioner may pay all or part of the payments of aids under sections
477A.011 to 477A.014, which are due on December 26 at any time after August 15 if a local
government requests such payment as being necessary for meeting its cash flow needs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2017.
 new text end

Sec. 10.

Minnesota Statutes 2014, section 477A.017, subdivision 2, is amended to read:


Subd. 2.

State auditor's duties.

The state auditor shall prescribe uniform financial
accounting and reporting standards in conformity with national standards to be applicable
to cities and towns of more than 2,500 population and uniform reporting standards to be
applicable to cities new text begin and towns new text end of less than 2,500 population.

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to reporting of financial information for
calendar year 2016 and thereafter.
 new text end

Sec. 11.

Minnesota Statutes 2014, section 477A.017, subdivision 3, is amended to read:


Subd. 3.

Conformity.

Other law to the contrary notwithstanding, in order to receive
distributions under sections 477A.011 to 477A.03, counties deleted text begin anddeleted text end new text begin , new text end citiesnew text begin , and townsnew text end must
conform to the standards set in subdivision 2 in making all financial reports required to be
made to the state auditor deleted text begin after June 30, 1984deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to reporting of financial information for
aids payable in 2017 and thereafter.
 new text end

Sec. 12.

Minnesota Statutes 2015 Supplement, section 477A.03, subdivision 2a,
is amended to read:


Subd. 2a.

Cities.

The total aid paid under section 477A.013, subdivision 9, is
$516,898,012 for aids payable in 2015. For aids payable in 2016 deleted text begin and thereafterdeleted text end , the total
aid paid under section 477A.013, subdivision 9, is $519,398,012.new text begin For aids payable in 2017
and thereafter, the total aid paid under section 477A.013, subdivision 9, is $539,398,012.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year
2017 and thereafter.
 new text end

Sec. 13.

Minnesota Statutes 2014, section 477A.03, subdivision 2b, is amended to read:


Subd. 2b.

Counties.

(a) For aids payable in 2014 deleted text begin and thereafterdeleted text end new text begin through 2016new text end , the
total aid payable under section 477A.0124, subdivision 3, is $100,795,000new text begin . For aids
payable in 2017 through 2024, the total aid payable under section 477A.0124, subdivision
3, is $108,795,000, of which $3,000,000 shall be allocated as required under Laws 2014,
chapter 150, article 4, section 6. For aids payable in 2025 and thereafter, the total aid
payable under section 477A.0124, subdivision 3, is $105,795,000new text end . Each calendar year,
$500,000 of this appropriation shall be retained by the commissioner of revenue to
make reimbursements to the commissioner of management and budget for payments
made under section 611.27. The reimbursements shall be to defray the additional costs
associated with court-ordered counsel under section 611.27. Any retained amounts not
used for reimbursement in a year shall be included in the next distribution of county
need aid that is certified to the county auditors for the purpose of property tax reduction
for the next taxes payable year.

(b) For aids payable in deleted text begin 2014 and thereafterdeleted text end new text begin 2016new text end , the total aid under section
477A.0124, subdivision 4, is $104,909,575new text begin . For aids payable in 2017 and thereafter,
the total aid payable under section 477A.0124, subdivision 4, is $109,909,575new text end . The
commissioner of revenue shall transfer to the commissioner of management and budget
$207,000 annually for the cost of preparation of local impact notes as required by section
3.987, and other local government activities. The commissioner of revenue shall transfer
to the commissioner of education $7,000 annually for the cost of preparation of local
impact notes for school districts as required by section 3.987. The commissioner of
revenue shall deduct the amounts transferred under this paragraph from the appropriation
under this paragraph. The amounts transferred are appropriated to the commissioner of
management and budget and the commissioner of education respectively.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2017 and thereafter.
 new text end

Sec. 14.

new text begin [477A.09] MAXIMUM EFFORT LOAN AID.
 new text end

new text begin For fiscal years 2018 through 2022, each school district with a maximum effort loan
under sections 126C.61 to 126C.72 outstanding as of June 30, 2016, is eligible for an aid
payment equal to one-fifth of the amount of interest that was paid on the loan between
December 1, 1997, and June 30, 2016. Aid payments under this section must be used to
reduce property taxes levied on net tax capacity within the district. Aid under this section
must be paid in fiscal years 2018 through 2022, in the manner provided under section
127A.45, subdivisions 9 and 13. An amount sufficient to make aid payments under this
section is annually appropriated from the general fund to the commissioner of education.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal years 2018 and thereafter.
 new text end

Sec. 15.

new text begin [477A.21] RIPARIAN PROTECTION AID.
 new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) When used in this section, the following terms have
the meanings given them in this subdivision.
 new text end

new text begin (b) "Public water basins" has the meaning provided in section 103G.005, subdivision
15, clauses (1) to (8) and (11).
 new text end

new text begin (c) "Public watercourses" has the meaning provided in section 103G.005,
subdivision 15, clauses (9) and (10).
 new text end

new text begin Subd. 2. new text end

new text begin Certification. new text end

new text begin The Board of Water and Soil Resources must certify to the
commissioner of revenue by July 1 of each year which counties and watershed districts
have affirmed their jurisdiction under section 103F.48, subdivision 7, paragraph (b), and
the proportion of each county's land area that is contained in each watershed district
within the county. On or before July 1 of each year, the commissioner of natural resources
shall certify to the commissioner of revenue the statewide and countywide total of miles of
shoreline of public waters basins, the number of centerline miles of public watercourses,
and the miles of public drainage system ditches.
new text end

new text begin Subd. 3. new text end

new text begin Distribution. new text end

new text begin (a) A county that is certified under subdivision 2 or that
portion of a county containing a watershed district certified under subdivision 2 is eligible
to receive aid under this section to enforce and implement the riparian protection and water
quality practices under section 103F.48. The commissioner shall calculate a preliminary
aid for all counties that shall equal: (1) each county's share of the total number of acres
in the state classified as class 2a under section 273.13, subdivision 23, divided by two;
plus (2) each county's share of the number of miles of shoreline of public water basins,
each county's share of the number of centerline miles of public watercourses, and each
county's share of the number of miles of public drainage system ditches established under
chapter 103E, divided by two; multiplied by (3) $10,000,000.
 new text end

new text begin (b) Aid to a county shall not be greater than $200,000 or less than $45,000. If the
sum of the preliminary aids payable to counties under paragraph (a) is greater or less than
the appropriation under subdivision 5, the commissioner of revenue shall calculate the
percentage adjustment necessary so that the total of the aid under paragraph (a) equals the
total amount available for aid under subdivision 5.
 new text end

new text begin (c) If only a portion of a county is certified as eligible to receive aid under subdivision
2, the aid otherwise payable to that county under this section shall be multiplied by a
fraction, the numerator of which is the area of the certified watershed district contained
within the county and the denominator of which is the total area of the county.
new text end

new text begin (d) Any aid that would otherwise be paid to a county or portion of a county that is
not certified under subdivision 2 shall be paid to the Board of Water and Soil Resources
for the purpose of enforcing and implementing the riparian protection and water quality
practices under section 103F.48.
 new text end

new text begin Subd. 4. new text end

new text begin Payments. new text end

new text begin The commissioner of revenue must compute the amount of
riparian protection aid payable to each eligible county and to the Board of Water and Soil
Resources under this section. On or before August 1 of each year, the commissioner shall
certify the amount to be paid to each county in the following year. The commissioner shall
pay riparian protection aid to counties and the Board of Water and Soil Resources in the
same manner and at the same time as aid payments under section 477A.015.
 new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin $10,000,000 for aids payable in 2017 and each year
thereafter is appropriated from the general fund to the commissioner of revenue to make
the payments required under this section.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2017
and thereafter.
 new text end

Sec. 16.

Laws 2001, First Special Session chapter 5, article 3, section 86, is amended
to read:


Sec. 86. RED RIVER WATERSHED MANAGEMENT BOARD; PAYMENT
IN LIEU OF TAXES.

(a) The Red River watershed management board may spend money from its general
fund to compensate counties and townships for lost tax revenue from land that becomes
tax exempt after it is acquired by the board or a member watershed district for flood
damage reduction project. The amount that may be paid under this section to a county
or township must not exceed the tax that was payable to that taxing jurisdiction on the
land in the last taxes payable year before the land became exempt due to the acquisition,
not to exceed deleted text begin $4deleted text end new text begin $5.133new text end per acre, multiplied by 20. This total amount may be paid in one
payment, or in equal annual installments over a period that does not exceed 20 years. A
member watershed district of the Red River management board may spend money from its
construction fund for the purposes described in this section.

(b) For the purposes of this section, "Red River watershed management board"
refers to the board established by Laws 1976, chapter 162, section 1, as amended by Laws
1982, chapter 474, section 1, Laws 1983, chapter 338, section 1, Laws 1989 First Special
Session chapter 1, article 5, section 45, Laws 1991, chapter 167, section 1, and Laws
1998, chapter 389, article 3, section 29.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year
2016 and thereafter.
 new text end

Sec. 17. new text begin 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.
new text end

new text begin Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of
Oslo shall receive the portion of its aid payment for calendar year 2013 under Minnesota
Statutes, section 477A.013, that was withheld under Minnesota Statutes, section
477A.017, subdivision 3, provided that the state auditor certifies to the commissioner
of revenue that it received audited financial statements from the city for calendar year
2012 by December 31, 2013. The commissioner of revenue shall make a payment of
$37,473.50 with the first payment of aids under Minnesota Statutes, section 477A.015.
$37,473.50 is appropriated from the general fund to the commissioner of revenue in fiscal
year 2017 to make this payment.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 18. new text begin 2014 AID PENALTY FORGIVENESS.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities
of Dundee, Jeffers, and Woodstock shall receive all of its calendar year 2014 aid payment
that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided
that the state auditor certifies to the commissioner of revenue that the city complied with
all reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3, for
calendar years 2013 and 2014 by June 1, 2015.
 new text end

new text begin (b) The commissioner of revenue shall make payment to each city no later than June
30, 2016. Up to $101,570 is appropriated from the general fund to the commissioner of
revenue in fiscal year 2017 to make the payments under this section.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 19. new text begin BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY.
new text end

new text begin In the first aid payable year in which a city that incorporated on October 13, 2015,
qualifies for aid under Minnesota Statutes, section 477A.013, subdivision 8, the city's
formula aid in the previous year shall be deemed to equal $115 multiplied by its population.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2017 and thereafter.
 new text end

Sec. 20. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 477A.20, new text end new text begin is repealed.
 new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 3

INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

Section 1.

Minnesota Statutes 2014, section 136A.129, subdivision 3, is amended to
read:


Subd. 3.

Program components.

(a) An intern must be an eligible student who has
been admitted to a major program that is related to the intern experience as determined
by the eligible institution.

(b) To participate in the program, an eligible institution must:

(1) enter into written agreements with eligible employers to provide internships that
are at least eight weeks long and located in greater Minnesota; and

(2) provide academic credit for the successful completion of the internship or ensure
that it fulfills requirements necessary to complete a vocational technical education program.

(c) To participate in the program, an eligible employer must enter into a written
agreement with an eligible institution specifying that the intern:

(1) deleted text begin would not have been hired without the tax credit described in subdivision 4;
deleted text end

deleted text begin (2)deleted text end did not work for the employer in the same or a similar job prior to entering
the agreement;

deleted text begin (3)deleted text end new text begin (2)new text end does not replace an existing employee;

deleted text begin (4)deleted text end new text begin (3)new text end has not previously participated in the program;

deleted text begin (5)deleted text end new text begin (4)new text end will be employed at a location in greater Minnesota;

deleted text begin (6)deleted text end new text begin (5)new text end will be paid at least minimum wage for a minimum of 16 hours per week
for a period of at least eight weeks; and

deleted text begin (7)deleted text end new text begin (6)new text end will be supervised and evaluated by the employer.

(d) The written agreement between the eligible institution and the eligible employer
must certify a credit amount to the employer, not to exceed $2,000 per intern. The total
dollar amount of credits that an eligible institution certifies to eligible employers in a
calendar year may not exceed the amount of its allocation under subdivision 4.

(e) Participating eligible institutions and eligible employers must report annually to
the office. The report must include at least the following:

(1) the number of interns hired;

(2) the number of hours and weeks worked by interns; and

(3) the compensation paid to interns.

deleted text begin (f) An internship required to complete an academic program does not qualify for the
greater Minnesota internship program under this section.
 deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
 new text end

Sec. 2.

Minnesota Statutes 2015 Supplement, section 289A.02, subdivision 7, is
amended to read:


Subd. 7.

Internal Revenue Code.

Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through December
31, deleted text begin 2014deleted text end new text begin 2015new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2014, section 290.01, subdivision 7, is amended to read:


Subd. 7.

Resident.

(a) The term "resident" means any individual domiciled
in Minnesota, except that an individual is not a "resident" for the period of time that
the individual is a "qualified individual" as defined in section 911(d)(1) of the Internal
Revenue Code, if the qualified individual notifies the county within three months of
moving out of the country that homestead status be revoked for the Minnesota residence
of the qualified individual, and the property is not classified as a homestead while the
individual remains a qualified individual.

(b) "Resident" also means any individual domiciled outside the state who maintains
a place of abode in the state and spends in the aggregate more than one-half of the tax
year in Minnesota, unless:

(1) the individual or the spouse of the individual is in the armed forces of the United
States; or

(2) the individual is covered under the reciprocity provisions in section 290.081.

For purposes of this subdivision, presence within the state for any part of a calendar
day constitutes a day spent in the state. new text begin A day does not qualify as a Minnesota day if
the taxpayer traveled from a place outside of Minnesota primarily for and essential to
obtaining medical care, as defined in Internal Revenue Code, section 213(d)(1)(A), in
Minnesota for the taxpayer, spouse, or a dependent of the taxpayer and the travel expense
is allowed under Internal Revenue Code, section 213(d)(1)(B), and is claimed by the
taxpayer as a deductible expense. new text end Individuals shall keep adequate records to substantiate
the days spent outside the state.

The term "abode" means a dwelling maintained by an individual, whether or not
owned by the individual and whether or not occupied by the individual, and includes a
dwelling place owned or leased by the individual's spouse.

(c) new text begin In determining where an individual is domiciled, new text end neither the commissioner nor
any court shall considernew text begin :
new text end

new text begin (1)new text end charitable contributions made by deleted text begin andeleted text end new text begin thenew text end individual within or without the state deleted text begin in
determining if the individual is domiciled in Minnesota.deleted text end new text begin ;
new text end

new text begin (2) the location of the individual's attorney, certified public accountant, or financial
adviser; or
 new text end

new text begin (3) the place of business of a financial institution at which the individual applies for
any new type of credit or at which the individual opens or maintains any type of account.
 new text end

new text begin (d) For purposes of this subdivision, the following terms have the meanings given
them:
 new text end

new text begin (1) "financial adviser" means:
 new text end

new text begin (i) an individual or business entity engaged in business as a certified financial
planner, registered investment adviser, licensed insurance producer or agent, or a
registered securities broker-dealer representative; or
 new text end

new text begin (ii) a financial institution providing services related to trust or estate administration,
investment management, or financial planning; and
 new text end

new text begin (2) "financial institution" means a financial institution as defined in section 47.015,
subdivision 1; a state or nationally chartered credit union; or a registered broker-dealer
under the Securities and Exchange Act of 1934.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015, except the amendment to paragraph (b) is effective for taxable years
beginning after December 31, 2016.
 new text end

Sec. 4.

Minnesota Statutes 2015 Supplement, section 290.01, subdivision 19, is
amended to read:


Subd. 19.

Net income.

The term "net income" means the federal taxable income,
as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
date named in this subdivision, incorporating the federal effective dates of changes to the
Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in subdivisions 19a to 19f.

In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:

(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;

(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
Revenue Code must be applied by allowing a deduction for capital gain dividends and
exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
Revenue Code; and

(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.

The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.

The net income of a designated settlement fund as defined in section 468B(d) of
the Internal Revenue Code means the gross income as defined in section 468B(b) of the
Internal Revenue Code.

The Internal Revenue Code of 1986, as amended through December 31, deleted text begin 2014deleted text end new text begin 2015new text end ,
shall be in effect for taxable years beginning after December 31, 1996.

Except as otherwise provided, references to the Internal Revenue Code in
subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
the applicable year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
except the changes incorporated by federal changes are effective retroactively at the same
time as the changes were effective for federal purposes.
 new text end

Sec. 5.

Minnesota Statutes 2014, section 290.01, subdivision 19a, is amended to read:


Subd. 19a.

Additions to federal taxable income.

For individuals, estates, and
trusts, there shall be added to federal taxable income:

(1)(i) interest income on obligations of any state other than Minnesota or a political
or governmental subdivision, municipality, or governmental agency or instrumentality
of any state other than Minnesota exempt from federal income taxes under the Internal
Revenue Code or any other federal statute; and

(ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
Code, except:

(A) the portion of the exempt-interest dividends exempt from state taxation under
the laws of the United States; and

(B) the portion of the exempt-interest dividends derived from interest income
on obligations of the state of Minnesota or its political or governmental subdivisions,
municipalities, governmental agencies or instrumentalities, but only if the portion of the
exempt-interest dividends from such Minnesota sources paid to all shareholders represents
95 percent or more of the exempt-interest dividends, including any dividends exempt
under subitem (A), that are paid by the regulated investment company as defined in section
851(a) of the Internal Revenue Code, or the fund of the regulated investment company as
defined in section 851(g) of the Internal Revenue Code, making the payment; and

(iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
government described in section 7871(c) of the Internal Revenue Code shall be treated as
interest income on obligations of the state in which the tribe is located;

(2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid or
accrued within the taxable year under this chapter and the amount of taxes based on net
income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state or
to any province or territory of Canada, to the extent allowed as a deduction under section
63(d) of the Internal Revenue Code, but the addition may not be more than the amount
by which the state itemized deduction exceeds the amount of the standard deduction as
defined in section 63(c) of the Internal Revenue Code, minus any addition that would have
been required under clause (17) if the taxpayer had claimed the standard deduction. For
the purpose of this clause, income, sales and use, motor vehicle sales, or excise taxes are
the last itemized deductions disallowed under clause (15);

(3) the capital gain amount of a lump-sum distribution to which the special tax under
section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;

(4) the amount of income taxes paid or accrued within the taxable year under this
chapter and taxes based on net income paid to any other state or any province or territory
of Canada, to the extent allowed as a deduction in determining federal adjusted gross
income. For the purpose of this paragraph, income taxes do not include the taxes imposed
by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729;

(5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10
other than expenses or interest used in computing net interest income for the subtraction
allowed under subdivision 19b, clause (1);

(6) the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;

(7) 80 percent of the depreciation deduction allowed under section 168(k) of the
Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
in the taxable year generates a deduction for depreciation under section 168(k) and the
activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
limited to excess of the depreciation claimed by the activity under section 168(k) over the
amount of the loss from the activity that is not allowed in the taxable year. In succeeding
taxable years when the losses not allowed in the taxable year are allowed, the depreciation
under section 168(k) is allowed;

(8) 80 percent of the amount by which the deduction allowed by section 179 of the
Internal Revenue Code exceeds the deduction allowable deleted text begin bydeleted text end new text begin under the dollar limits ofnew text end
section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003;

(9) to the extent deducted in computing federal taxable income, the amount of the
deduction allowable under section 199 of the Internal Revenue Code;

(10) the amount of expenses disallowed under section 290.10, subdivision 2;

(11) for taxable years beginning before January 1, 2010, the amount deducted for
qualified tuition and related expenses under section 222 of the Internal Revenue Code, to
the extent deducted from gross income;

(12) for taxable years beginning before January 1, 2010, the amount deducted for
certain expenses of elementary and secondary school teachers under section 62(a)(2)(D)
of the Internal Revenue Code, to the extent deducted from gross income;

(13) discharge of indebtedness income resulting from reacquisition of business
indebtedness and deferred under section 108(i) of the Internal Revenue Code;

(14) changes to federal taxable income attributable to a net operating loss that the
taxpayer elected to carry back for more than two years for federal purposes but for which
the losses can be carried back for only two years under section 290.095, subdivision
11, paragraph (c);

(15) the amount of disallowed itemized deductions, but the amount of disallowed
itemized deductions plus the addition required under clause (2) may not be more than the
amount by which the itemized deductions as allowed under section 63(d) of the Internal
Revenue Code exceeds the amount of the standard deduction as defined in section 63(c) of
the Internal Revenue Code, and reduced by any addition that would have been required
under clause (17) if the taxpayer had claimed the standard deduction:

(i) the amount of disallowed itemized deductions is equal to the lesser of:

(A) three percent of the excess of the taxpayer's federal adjusted gross income
over the applicable amount; or

(B) 80 percent of the amount of the itemized deductions otherwise allowable to the
taxpayer under the Internal Revenue Code for the taxable year;

(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a
married individual filing a separate return. Each dollar amount shall be increased by
an amount equal to:

(A) such dollar amount, multiplied by

(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
Revenue Code for the calendar year in which the taxable year begins, by substituting
"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof;

(iii) the term "itemized deductions" does not include:

(A) the deduction for medical expenses under section 213 of the Internal Revenue
Code;

(B) any deduction for investment interest as defined in section 163(d) of the Internal
Revenue Code; and

(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or
theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue
Code or for losses described in section 165(d) of the Internal Revenue Code;

(16) the amount of disallowed personal exemptions for taxpayers with federal
adjusted gross income over the threshold amount:

(i) the disallowed personal exemption amount is equal to the number of personal
exemptions allowed under section 151(b) and (c) of the Internal Revenue Code multiplied
by the dollar amount for personal exemptions under section 151(d)(1) and (2) of the
Internal Revenue Code, as adjusted for inflation by section 151(d)(4) of the Internal
Revenue Code, and by the applicable percentage;

(ii) "applicable percentage" means two percentage points for each $2,500 (or
fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable
year exceeds the threshold amount. In the case of a married individual filing a separate
return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In
no event shall the applicable percentage exceed 100 percent;

(iii) the term "threshold amount" means:

(A) $150,000 in the case of a joint return or a surviving spouse;

(B) $125,000 in the case of a head of a household;

(C) $100,000 in the case of an individual who is not married and who is not a
surviving spouse or head of a household; and

(D) $75,000 in the case of a married individual filing a separate return; and

(iv) the thresholds shall be increased by an amount equal to:

(A) such dollar amount, multiplied by

(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
Revenue Code for the calendar year in which the taxable year begins, by substituting
"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; and

(17) to the extent deducted in the computation of federal taxable income, for taxable
years beginning after December 31, 2010, and before January 1, 2014, the difference
between the standard deduction allowed under section 63(c) of the Internal Revenue Code
and the standard deduction allowed for 2011, 2012, and 2013 under the Internal Revenue
Code as amended through December 1, 2010.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
except the changes incorporated by federal changes are effective retroactively at the same
time as the changes were effective for federal purposes.
 new text end

Sec. 6.

Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:


Subd. 19b.

Subtractions from federal taxable income.

For individuals, estates,
and trusts, there shall be subtracted from federal taxable income:

(1) net interest income on obligations of any authority, commission, or
instrumentality of the United States to the extent includable in taxable income for federal
income tax purposes but exempt from state income tax under the laws of the United States;

(2) if included in federal taxable income, the amount of any overpayment of income
tax to Minnesota or to any other state, for any previous taxable year, whether the amount
is received as a refund or as a credit to another taxable year's income tax liability;

(3) the amount paid to others, less the amount used to claim the credit allowed under
section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
transportation of each qualifying child in attending an elementary or secondary school
situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
resident of this state may legally fulfill the state's compulsory attendance laws, which
is not operated for profit, and which adheres to the provisions of the Civil Rights Act
of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
"textbooks" includes books and other instructional materials and equipment purchased
or leased for use in elementary and secondary schools in teaching only those subjects
legally and commonly taught in public elementary and secondary schools in this state.
Equipment expenses qualifying for deduction includes expenses as defined and limited in
section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
books and materials used in the teaching of religious tenets, doctrines, or worship, the
purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
or materials for, or transportation to, extracurricular activities including sporting events,
musical or dramatic events, speech activities, driver's education, or similar programs. No
deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
the qualifying child's vehicle to provide such transportation for a qualifying child. For
purposes of the subtraction provided by this clause, "qualifying child" has the meaning
given in section 32(c)(3) of the Internal Revenue Code;

(4) income as provided under section 290.0802;

(5) to the extent included in federal adjusted gross income, income realized on
disposition of property exempt from tax under section 290.491;

(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
of the Internal Revenue Code in determining federal taxable income by an individual
who does not itemize deductions for federal income tax purposes for the taxable year, an
amount equal to 50 percent of the excess of charitable contributions over $500 allowable
as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
under the provisions of Public Law 109-1 and Public Law 111-126;

(7) for individuals who are allowed a federal foreign tax credit for taxes that do not
qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
of subnational foreign taxes for the taxable year, but not to exceed the total subnational
foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
"federal foreign tax credit" means the credit allowed under section 27 of the Internal
Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
the extent they exceed the federal foreign tax credit;

(8) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a
shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
clause (12), in the case of a shareholder of an S corporation, minus the positive value of
any net operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition. The resulting delayed depreciation cannot be less than zero;

(9) job opportunity building zone income as provided under section 469.316;

(10) to the extent included in federal taxable income, the amount of compensation
paid to members of the Minnesota National Guard or other reserve components of the
United States military for active service, including compensation for services performed
under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
service" means (i) state active service as defined in section 190.05, subdivision 5a, clause
(1); or (ii) federally funded state active service as defined in section 190.05, subdivision
5b, and "active service" includes service performed in accordance with section 190.08,
subdivision 3;

(11) to the extent included in federal taxable income, the amount of compensation
paid to Minnesota residents who are members of the armed forces of the United States
or United Nations for active duty performed under United States Code, title 10; or the
authority of the United Nations;

(12) an amount, not to exceed $10,000, equal to qualified expenses related to a
qualified donor's donation, while living, of one or more of the qualified donor's organs
to another person for human organ transplantation. For purposes of this clause, "organ"
means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
"human organ transplantation" means the medical procedure by which transfer of a human
organ is made from the body of one person to the body of another person; "qualified
expenses" means unreimbursed expenses for both the individual and the qualified donor
for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
may be subtracted under this clause only once; and "qualified donor" means the individual
or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
individual may claim the subtraction in this clause for each instance of organ donation for
transplantation during the taxable year in which the qualified expenses occur;

(13) deleted text begin in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a
shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the
case of a shareholder of a corporation that is an S corporation, minus the positive value of
any net operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition. If the net operating loss exceeds the addition for the tax year,
a subtraction is not allowed under this clausedeleted text end new text begin the section 179 expensing subtraction as
provided under section 290.0803, subdivision 3new text end ;

(14) to the extent included in the federal taxable income of a nonresident of
Minnesota, compensation paid to a service member as defined in United States Code, title
10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
Act, Public Law 108-189, section 101(2);

(15) to the extent included in federal taxable income, the amount of national service
educational awards received from the National Service Trust under United States Code,
title 42, sections 12601 to 12604, for service in an approved Americorps National Service
program;

(16) to the extent included in federal taxable income, discharge of indebtedness
income resulting from reacquisition of business indebtedness included in federal taxable
income under section 108(i) of the Internal Revenue Code. This subtraction applies only
to the extent that the income was included in net income in a prior year as a result of the
addition under subdivision 19a, clause (13);

(17) the amount of the net operating loss allowed under section 290.095, subdivision
11, paragraph (c);

(18) the amount of expenses not allowed for federal income tax purposes due
to claiming the railroad track maintenance credit under section 45G(a) of the Internal
Revenue Code;

(19) the amount of the limitation on itemized deductions under section 68(b) of the
Internal Revenue Code;

(20) the amount of the phaseout of personal exemptions under section 151(d) of
the Internal Revenue Code; deleted text begin and
deleted text end

deleted text begin (21) to the extent included in federal taxable income, the amount of qualified
transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal
Revenue Code. The subtraction is limited to the lesser of the amount of qualified
transportation fringe benefits received in excess of the limitations under section
132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the
maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal
Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A)
of the Internal Revenue Code.
 deleted text end

new text begin (21) the amount equal to the contributions made during the taxable year to an
account in a plan qualifying under section 529 of the Internal Revenue Code, reduced by
any withdrawals from the account during the taxable year, not including amounts rolled
over from other accounts in plans qualifying under section 529 of the Internal Revenue
Code, and not to exceed $3,000 for married couples filing joint returns and $1,500 for
all other filers. The subtraction must not include any amount used to claim the credit
allowed under section 290.0684; and
 new text end

new text begin (22) to the extent included in federal taxable income, the discharge of indebtedness
of the taxpayer if the indebtedness discharged is a qualified education loan, as defined in
section 221 of the Internal Revenue Code, and the indebtedness was discharged following
the taxpayer's completion of an income-driven repayment plan. For purposes of this
clause, "income-driven repayment plan" means a payment plan established by the United
States Department of Education that sets monthly student loan payments based on income
and family size under United States Code, title 20, section 1087e, or similar authority and
specifically includes, but is not limited to:
 new text end

new text begin (1) the income-based repayment plan under United State Code, title 20, section 1098e;
 new text end

new text begin (2) the income contingent repayment plan established under United State Code,
title 20, section 1087e, subsection (e); and
 new text end

new text begin (3) the PAYE program or REPAYE program established by the Department of
Education under administrative regulations.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
 new text end

Sec. 7.

Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read:


Subd. 19c.

Corporations; additions to federal taxable income.

For corporations,
there shall be added to federal taxable income:

(1) the amount of any deduction taken for federal income tax purposes for income,
excise, or franchise taxes based on net income or related minimum taxes, including but not
limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota,
another state, a political subdivision of another state, the District of Columbia, or any
foreign country or possession of the United States;

(2) interest not subject to federal tax upon obligations of: the United States, its
possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
state, any of its political or governmental subdivisions, any of its municipalities, or any
of its governmental agencies or instrumentalities; the District of Columbia; or Indian
tribal governments;

(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
Revenue Code;

(4) the amount of any net operating loss deduction taken for federal income tax
purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
deduction under section 810 of the Internal Revenue Code;

(5) the amount of any special deductions taken for federal income tax purposes
under sections 241 to 247 and 965 of the Internal Revenue Code;

(6) losses from the business of mining, as defined in section 290.05, subdivision 1,
clause (a), that are not subject to Minnesota income tax;

(7) the amount of any capital losses deducted for federal income tax purposes under
sections 1211 and 1212 of the Internal Revenue Code;

(8) the amount of percentage depletion deducted under sections 611 through 614 and
291 of the Internal Revenue Code;

(9) for certified pollution control facilities placed in service in a taxable year
beginning before December 31, 1986, and for which amortization deductions were elected
under section 169 of the Internal Revenue Code of 1954, as amended through December
31, 1985, the amount of the amortization deduction allowed in computing federal taxable
income for those facilities;

(10) the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;

(11) any increase in subpart F income, as defined in section 952(a) of the Internal
Revenue Code, for the taxable year when subpart F income is calculated without regard to
the provisions of Division C, title III, section 303(b) of Public Law 110-343;

(12) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A)
and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer
has an activity that in the taxable year generates a deduction for depreciation under
section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year
that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed
under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the
depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the
amount of the loss from the activity that is not allowed in the taxable year. In succeeding
taxable years when the losses not allowed in the taxable year are allowed, the depreciation
under section 168(k)(1)(A) and (k)(4)(A) is allowed;

(13) 80 percent of the amount by which the deduction allowed by section 179 of
the Internal Revenue Code exceeds the deduction allowable deleted text begin bydeleted text end new text begin under the dollar limits ofnew text end
section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003;

(14) to the extent deducted in computing federal taxable income, the amount of the
deduction allowable under section 199 of the Internal Revenue Code;

(15) the amount of expenses disallowed under section 290.10, subdivision 2; and

(16) discharge of indebtedness income resulting from reacquisition of business
indebtedness and deferred under section 108(i) of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
except the changes incorporated by federal changes are effective retroactively at the same
time as the changes were effective for federal purposes.
 new text end

Sec. 8.

Minnesota Statutes 2014, section 290.01, subdivision 19d, is amended to read:


Subd. 19d.

Corporations; modifications decreasing federal taxable income.

For
corporations, there shall be subtracted from federal taxable income after the increases
provided in subdivision 19c:

(1) the amount of foreign dividend gross-up added to gross income for federal
income tax purposes under section 78 of the Internal Revenue Code;

(2) the amount of salary expense not allowed for federal income tax purposes due to
claiming the work opportunity credit under section 51 of the Internal Revenue Code;

(3) any dividend (not including any distribution in liquidation) paid within the
taxable year by a national or state bank to the United States, or to any instrumentality of
the United States exempt from federal income taxes, on the preferred stock of the bank
owned by the United States or the instrumentality;

(4) the deduction for capital losses pursuant to sections 1211 and 1212 of the
Internal Revenue Code, except that:

(i) for capital losses incurred in taxable years beginning after December 31, 1986,
capital loss carrybacks shall not be allowed;

(ii) for capital losses incurred in taxable years beginning after December 31, 1986,
a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
allowed;

(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
capital loss carryback to each of the three taxable years preceding the loss year, subject to
the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and

(iv) for capital losses incurred in taxable years beginning before January 1, 1987,
a capital loss carryover to each of the five taxable years succeeding the loss year to the
extent such loss was not used in a prior taxable year and subject to the provisions of
Minnesota Statutes 1986, section 290.16, shall be allowed;

(5) an amount for interest and expenses relating to income not taxable for federal
income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
291 of the Internal Revenue Code in computing federal taxable income;

(6) in the case of mines, oil and gas wells, other natural deposits, and timber for
which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a
reasonable allowance for depletion based on actual cost. In the case of leases the deduction
must be apportioned between the lessor and lessee in accordance with rules prescribed
by the commissioner. In the case of property held in trust, the allowable deduction must
be apportioned between the income beneficiaries and the trustee in accordance with the
pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
of the trust's income allocable to each;

(7) for certified pollution control facilities placed in service in a taxable year
beginning before December 31, 1986, and for which amortization deductions were elected
under section 169 of the Internal Revenue Code of 1954, as amended through December
31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
1986, section 290.09, subdivision 7;

(8) amounts included in federal taxable income that are due to refunds of income,
excise, or franchise taxes based on net income or related minimum taxes paid by the
corporation to Minnesota, another state, a political subdivision of another state, the
District of Columbia, or a foreign country or possession of the United States to the extent
that the taxes were added to federal taxable income under subdivision 19c, clause (1), in a
prior taxable year;

(9) income or gains from the business of mining as defined in section 290.05,
subdivision 1, clause (a), that are not subject to Minnesota franchise tax;

(10) the amount of disability access expenditures in the taxable year which are not
allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;

(11) the amount of qualified research expenses not allowed for federal income tax
purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that
the amount exceeds the amount of the credit allowed under section 290.068;

(12) the amount of salary expenses not allowed for federal income tax purposes due to
claiming the Indian employment credit under section 45A(a) of the Internal Revenue Code;

(13) any decrease in subpart F income, as defined in section 952(a) of the Internal
Revenue Code, for the taxable year when subpart F income is calculated without regard to
the provisions of Division C, title III, section 303(b) of Public Law 110-343;

(14) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19c, clause (12), an amount equal to one-fifth of
the delayed depreciation. For purposes of this clause, "delayed depreciation" means the
amount of the addition made by the taxpayer under subdivision 19c, clause (12). The
resulting delayed depreciation cannot be less than zero;

(15) deleted text begin in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19c, clause (13), an amount equal to one-fifth
of the amount of the additiondeleted text end new text begin the section 179 expensing subtraction as provided under
section 290.0803, subdivision 3new text end ;

(16) to the extent included in federal taxable income, discharge of indebtedness
income resulting from reacquisition of business indebtedness included in federal taxable
income under section 108(i) of the Internal Revenue Code. This subtraction applies only
to the extent that the income was included in net income in a prior year as a result of the
addition under subdivision 19c, clause (16); and

(17) the amount of expenses not allowed for federal income tax purposes due
to claiming the railroad track maintenance credit under section 45G(a) of the Internal
Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
 new text end

Sec. 9.

Minnesota Statutes 2015 Supplement, section 290.01, subdivision 31, is
amended to read:


Subd. 31.

Internal Revenue Code.

Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through December
31, deleted text begin 2014deleted text end new text begin 2015new text end . Internal Revenue Code also includes any uncodified provision in federal
law that relates to provisions of the Internal Revenue Code that are incorporated into
Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1,
subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as
amended through March 18, 2010.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
except the changes incorporated by federal changes are effective retroactively at the same
time as the changes were effective for federal purposes.
 new text end

Sec. 10.

Minnesota Statutes 2014, section 290.06, subdivision 22, is amended to read:


Subd. 22.

Credit for taxes paid to another state.

(a) A taxpayer who is liable for
taxes based on net income to another state, as provided in paragraphs (b) through (f), upon
income allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to
another state if the tax is actually paid in the taxable year or a subsequent taxable year. A
taxpayer who is a resident of this state pursuant to section 290.01, subdivision 7, paragraph
(b), and who is subject to income tax as a resident in the state of the individual's domicile
is not allowed this credit unless the state of domicile does not allow a similar credit.

(b) For an individual, estate, or trust, the credit is determined by multiplying the tax
payable under this chapter by the ratio derived by dividing the income subject to tax in the
other state that is also subject to tax in Minnesota while a resident of Minnesota by the
taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue
Code, modified by the addition required by section 290.01, subdivision 19a, clause (1),
and the subtraction allowed by section 290.01, subdivision 19b, clause (1), to the extent
the income is allocated or assigned to Minnesota under sections 290.081 and 290.17.

(c) If the taxpayer is an athletic team that apportions all of its income under section
290.17, subdivision 5, the credit is determined by multiplying the tax payable under this
chapter by the ratio derived from dividing the total net income subject to tax in the other
state by the taxpayer's Minnesota taxable income.

(d) new text begin (1) new text end The credit determined under paragraph (b) or (c) shall not exceed the amount
of tax so paid to the other state on the gross income earned within the other state subject
to tax under this chapterdeleted text begin ,deleted text end new text begin .new text end


deleted text begin nor shalldeleted text end new text begin (2) new text end The allowance of the credit new text begin does not new text end reduce the taxes paid under this
chapter to an amount less than what would be assessed if deleted text begin such income amount wasdeleted text end new text begin the
gross income earned within the other state were new text end excluded from taxable net income.

(e) In the case of the tax assessed on a lump-sum distribution under section
290.032, the credit allowed under paragraph (a) is the tax assessed by the other state on
the lump-sum distribution that is also subject to tax under section 290.032, and shall
not exceed the tax assessed under section 290.032. To the extent the total lump-sum
distribution defined in section 290.032, subdivision 1, includes lump-sum distributions
received in prior years or is all or in part an annuity contract, the reduction to the tax on
the lump-sum distribution allowed under section 290.032, subdivision 2, includes tax paid
to another state that is properly apportioned to that distribution.

(f) If a Minnesota resident reported an item of income to Minnesota and is assessed
tax in such other state on that same income after the Minnesota statute of limitations
has expired, the taxpayer shall receive a credit for that year under paragraph (a),
notwithstanding any statute of limitations to the contrary. The claim for the credit must
be submitted within one year from the date the taxes were paid to the other state. The
taxpayer must submit sufficient proof to show entitlement to a credit.

(g) For the purposes of this subdivision, a resident shareholder of a corporation
treated as an "S" corporation under section 290.9725, must be considered to have paid
a tax imposed on the shareholder in an amount equal to the shareholder's pro rata share
of any net income tax paid by the S corporation to another state. For the purposes of the
preceding sentence, the term "net income tax" means any tax imposed on or measured by
a corporation's net income.

(h) For the purposes of this subdivision, a resident partner of an entity taxed as a
partnership under the Internal Revenue Code must be considered to have paid a tax imposed
on the partner in an amount equal to the partner's pro rata share of any net income tax paid
by the partnership to another state. For purposes of the preceding sentence, the term "net
income" tax means any tax imposed on or measured by a partnership's net income.

(i) For the purposes of this subdivision, "another state":

(1) includes:

(i) the District of Columbia; and

(ii) a province or territory of Canada; but

(2) excludes Puerto Rico and the several territories organized by Congress.

(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a
state by state basis.

(k) For a tax imposed by a province or territory of Canada, the tax for purposes of
this subdivision is the excess of the tax over the amount of the foreign tax credit allowed
under section 27 of the Internal Revenue Code. In determining the amount of the foreign
tax credit allowed, the net income taxes imposed by Canada on the income are deducted
first. Any remaining amount of the allowable foreign tax credit reduces the provincial or
territorial tax that qualifies for the credit under this subdivision.

new text begin (l) If the amount of the credit which a qualifying individual is eligible to receive
under this section for tax paid to a qualifying state, disregarding the limitation in paragraph
(d), clause (2), exceeds the tax due under this chapter, the commissioner shall refund the
excess to the individual. An amount sufficient to pay the refunds required by this section
is appropriated to the commissioner from the general fund.
new text end

new text begin For purposes of this paragraph, "qualifying individual" means a Minnesota resident under
section 290.01, subdivision 7, paragraph (a), who received compensation during the
taxable year for the performance of personal or professional services within a qualifying
state, and "qualifying state" means a state with which an agreement under section 290.081
is not in effect for the taxable year but was in effect for a taxable year beginning before
January 1, 2010.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
 new text end

Sec. 11.

Minnesota Statutes 2014, section 290.067, subdivision 1, is amended to read:


Subdivision 1.

Amount of credit.

(a) A taxpayer may take as a credit against the
tax due from the taxpayer and a spouse, if any, under this chapter an amount equal to the
dependent care credit for which the taxpayer is eligible pursuant to the provisions of
section 21 of the Internal Revenue Code deleted text begin subject to the limitations provided in subdivision
2deleted text end except that in determining whether the child qualified as a dependent, income received
as a Minnesota family investment program grant or allowance to or on behalf of the child
must not be taken into account in determining whether the child received more than half
of the child's support from the taxpayer, and the provisions of section 32(b)(1)(D) of
the Internal Revenue Code do not apply.

(b) If a child who has not attained the age of six years at the close of the taxable year
is cared for at a licensed family day care home operated by the child's parent, the taxpayer
is deemed to have paid employment-related expenses. If the child is 16 months old or
younger at the close of the taxable year, the amount of expenses deemed to have been paid
equals the maximum limit for one qualified individual under section 21(c) and (d) of the
Internal Revenue Code. If the child is older than 16 months of age but has not attained the
age of six years at the close of the taxable year, the amount of expenses deemed to have
been paid equals the amount the licensee would charge for the care of a child of the same
age for the same number of hours of care.

(c) If a married couple:

(1) has a child who has not attained the age of one year at the close of the taxable year;

(2) files a joint tax return for the taxable year; and

(3) does not participate in a dependent care assistance program as defined in section
129 of the Internal Revenue Code, in lieu of the actual employment related expenses paid
for that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of
(i) the combined earned income of the couple or (ii) the amount of the maximum limit for
one qualified individual under section 21(c) and (d) of the Internal Revenue Code will
be deemed to be the employment related expense paid for that child. The earned income
limitation of section 21(d) of the Internal Revenue Code shall not apply to this deemed
amount. These deemed amounts apply regardless of whether any employment-related
expenses have been paid.

(d) If the taxpayer is not required and does not file a federal individual income tax
return for the tax year, no credit is allowed for any amount paid to any person unless:

(1) the name, address, and taxpayer identification number of the person are included
on the return claiming the credit; or

(2) if the person is an organization described in section 501(c)(3) of the Internal
Revenue Code and exempt from tax under section 501(a) of the Internal Revenue Code,
the name and address of the person are included on the return claiming the credit.

In the case of a failure to provide the information required under the preceding sentence,
the preceding sentence does not apply if it is shown that the taxpayer exercised due
diligence in attempting to provide the information required.

(e) In the case of a nonresident, part-year resident, or a person who has earned
income not subject to tax under this chapter including earned income excluded pursuant to
section 290.01, subdivision 19b, clause (9), the credit determined under section 21 of the
Internal Revenue Code must be allocated based on the ratio by which the earned income
of the claimant and the claimant's spouse from Minnesota sources bears to the total earned
income of the claimant and the claimant's spouse.

(f) For residents of Minnesota, the subtractions for military pay under section
290.01, subdivision 19b, clauses (10) and (11), are not considered "earned income not
subject to tax under this chapter."

(g) For residents of Minnesota, the exclusion of combat pay under section 112 of
the Internal Revenue Code is not considered "earned income not subject to tax under
this chapter."

new text begin (h) For taxpayers with federal adjusted gross income in excess of $38,000, the
credit is equal to the lesser of the credit otherwise calculated under this subdivision or the
amount equal to the credit otherwise calculated under this subdivision minus ten percent
of federal adjusted gross income in excess of $38,000, but in no case is the credit less than
zero. For purposes of this paragraph, "federal adjusted gross income" has the meaning
given in section 62 of the Internal Revenue Code.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
 new text end

Sec. 12.

Minnesota Statutes 2014, section 290.067, subdivision 2b, is amended to read:


Subd. 2b.

Inflation adjustment.

The commissioner shall adjust the dollar amount
of the income threshold at which the maximum credit begins to be reduced under
subdivision deleted text begin 2deleted text end new text begin 1new text end by the percentage determined pursuant to the provisions of section 1(f) of
the Internal Revenue Code, except that in section 1(f)(3)(B) the word deleted text begin "1999"deleted text end new text begin "2015"new text end shall
be substituted for the word "1992." For deleted text begin 2001deleted text end new text begin 2017new text end , the commissioner shall then determine
the percent change from the 12 months ending on August 31, deleted text begin 1999deleted text end new text begin 2015new text end , to the 12 months
ending on August 31, deleted text begin 2000deleted text end new text begin 2016new text end , and in each subsequent year, from the 12 months ending
on August 31, deleted text begin 1999deleted text end new text begin 2015new text end , to the 12 months ending on August 31 of the year preceding the
taxable year. The determination of the commissioner pursuant to this subdivision must not
be considered a "rule" and is not subject to the Administrative Procedure Act contained in
chapter 14. The threshold amount as adjusted must be rounded to the nearest $10 amount.
If the amount ends in $5, the amount is rounded up to the nearest $10 amount.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2015 Supplement, section 290.0671, subdivision 1,
is amended to read:


Subdivision 1.

Credit allowed.

(a) An individual who is a resident of Minnesota is
allowed a credit against the tax imposed by this chapter equal to a percentage of earned
income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of
the Internal Revenue Codedeleted text begin .deleted text end new text begin , except that:
new text end

new text begin (i) the earned income and adjusted gross income limitations of section 32 of the
Internal Revenue Code do not apply; and
 new text end

new text begin (ii) a taxpayer with no qualifying children who has attained the age of 21 but not
attained age 65 before the close of the taxable year and is otherwise eligible for a credit
under section 32 of the Internal Revenue Code may also receive a credit.
 new text end

(b) For individuals with no qualifying children, the credit equals deleted text begin 2.10deleted text end new text begin threenew text end percent
of the first deleted text begin $6,180deleted text end new text begin $6,500new text end of earned income. The credit is reduced by deleted text begin 2.01deleted text end new text begin threenew text end percent
of earned income or adjusted gross income, whichever is greater, in excess of deleted text begin $8,130deleted text end new text begin
$12,000new text end , but in no case is the credit less than zero.

(c) For individuals with one qualifying child, the credit equals deleted text begin 9.35deleted text end new text begin 12.71new text end percent
of the first deleted text begin $11,120deleted text end new text begin $8,350new text end of earned income. The credit is reduced by deleted text begin 6.02deleted text end new text begin 5.2new text end percent
of earned income or adjusted gross income, whichever is greater, in excess of deleted text begin $21,190deleted text end new text begin
$21,620new text end , but in no case is the credit less than zero.

(d) For individuals with two or more qualifying children, the credit equals deleted text begin 11deleted text end new text begin 14.94new text end
percent of the first deleted text begin $18,240deleted text end new text begin $13,700new text end of earned income. The credit is reduced by deleted text begin 10.82deleted text end new text begin
9.2new text end percent of earned income or adjusted gross income, whichever is greater, in excess of
deleted text begin $25,130deleted text end new text begin $25,640new text end , but in no case is the credit less than zero.

(e) For a part-year resident, the credit must be allocated based on the percentage
calculated under section 290.06, subdivision 2c, paragraph (e).

(f) For a person who was a resident for the entire tax year and has earned income
not subject to tax under this chapter, including income excluded under section 290.01,
subdivision 19b, clause (9), the credit must be allocated based on the ratio of federal
adjusted gross income reduced by the earned income not subject to tax under this chapter
over federal adjusted gross income. For purposes of this paragraph, the subtractions
for military pay under section 290.01, subdivision 19b, clauses (10) and (11), are not
considered "earned income not subject to tax under this chapter."

For the purposes of this paragraph, the exclusion of combat pay under section 112
of the Internal Revenue Code is not considered "earned income not subject to tax under
this chapter."

(g) For tax years beginning after deleted text begin December 31, 2007, and before December 31, 2010,
and for tax years beginning afterdeleted text end December 31, 2017, the deleted text begin $8,130deleted text end new text begin $12,000new text end in paragraph
(b), the deleted text begin $21,190deleted text end new text begin $21,620new text end in paragraph (c), and the deleted text begin $25,130deleted text end new text begin $25,640new text end in paragraph (d),
after being adjusted for inflation under subdivision 7, are each increased by $3,000 for
married taxpayers filing joint returns. For tax years beginning after December 31, deleted text begin 2008deleted text end new text begin
2017new text end , the commissioner shall annually adjust the $3,000 by the percentage determined
pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in
section 1(f)(3)(B), the word "2007" shall be substituted for the word "1992." For deleted text begin 2009deleted text end new text begin
2018new text end , the commissioner shall then determine the percent change from the 12 months
ending on August 31, 2007, to the 12 months ending on August 31, deleted text begin 2008deleted text end new text begin 2017new text end , and in
each subsequent year, from the 12 months ending on August 31, 2007, to the 12 months
ending on August 31 of the year preceding the taxable year. The earned income thresholds
as adjusted for inflation must be rounded to the nearest $10. If the amount ends in $5, the
amount is rounded up to the nearest $10. The determination of the commissioner under
this subdivision is not a rule under the Administrative Procedure Act.

(h)deleted text begin (1) For tax years beginning after December 31, 2012, and before January 1, 2014,
the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph
(d), after being adjusted for inflation under subdivision 7, are increased by $5,340 for
married taxpayers filing joint returns; and (2)deleted text end For tax years beginning after December 31,
deleted text begin 2013deleted text end new text begin 2015new text end , and before January 1, 2018, the deleted text begin $8,130deleted text end new text begin $12,000new text end in paragraph (b), the deleted text begin $21,190deleted text end new text begin
$21,620new text end in paragraph (c), and the deleted text begin $25,130deleted text end new text begin $25,640new text end in paragraph (d), after being adjusted
for inflation under subdivision 7, are each increased by $5,000 for married taxpayers filing
joint returns. For tax years beginning deleted text begin after December 31, 2010, and before January 1,
2012, and for tax years beginningdeleted text end after December 31, deleted text begin 2013deleted text end new text begin 2015new text end , and before January 1,
2018, the commissioner shall annually adjust the $5,000 by the percentage determined
pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in
section 1(f)(3)(B), the word "2008" shall be substituted for the word "1992." For deleted text begin 2011deleted text end new text begin
2016new text end , the commissioner shall then determine the percent change from the 12 months
ending on August 31, 2008, to the 12 months ending on August 31, deleted text begin 2010deleted text end new text begin 2015new text end , and in
each subsequent year, from the 12 months ending on August 31, 2008, to the 12 months
ending on August 31 of the year preceding the taxable year. The earned income thresholds
as adjusted for inflation must be rounded to the nearest $10. If the amount ends in $5, the
amount is rounded up to the nearest $10. The determination of the commissioner under
this subdivision is not a rule under the Administrative Procedure Act.

(i) The commissioner shall construct tables showing the amount of the credit at
various income levels and make them available to taxpayers. The tables shall follow
the schedule contained in this subdivision, except that the commissioner may graduate
the transition between income brackets.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
 new text end

Sec. 14.

Minnesota Statutes 2014, section 290.0671, subdivision 7, is amended to read:


Subd. 7.

Inflation adjustment.

The earned income amounts used to calculate
the credit and the income thresholds at which the maximum credit begins to be reduced
in subdivision 1 must be adjusted for inflation. The commissioner shall adjust by the
percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue
Code, except that in section 1(f)(3)(B) the word deleted text begin "2013"deleted text end new text begin "2015"new text end shall be substituted for
the word "1992." For deleted text begin 2015deleted text end new text begin 2017new text end , the commissioner shall then determine the percent
change from the 12 months ending on August 31, deleted text begin 2013deleted text end new text begin 2015new text end , to the 12 months ending
on August 31, deleted text begin 2014deleted text end new text begin 2016new text end , and in each subsequent year, from the 12 months ending on
August 31, deleted text begin 2013deleted text end new text begin 2015new text end , to the 12 months ending on August 31 of the year preceding the
taxable year. The earned income thresholds as adjusted for inflation must be rounded to
the nearest $10 amount. If the amount ends in $5, the amount is rounded up to the nearest
$10 amount. The determination of the commissioner under this subdivision is not a rule
under the Administrative Procedure Act.

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2014, section 290.0674, subdivision 2, is amended to read:


Subd. 2.

Limitations.

(a) For claimants with income not greater than $33,500, the
maximum credit allowed for a family is $1,000 multiplied by the number of qualifying
children in kindergarten through grade 12 in the family. The maximum credit for families
with one qualifying child in kindergarten through grade 12 is reduced by $1 for each $4 of
household income over $33,500, and the maximum credit for families with two or more
qualifying children in kindergarten through grade 12 is reduced by $2 for each $4 of
household income over $33,500, but in no case is the credit less than zero.

For purposes of this section "income" has the meaning given in deleted text begin section 290.067,deleted text end
subdivision 2a. In the case of a married claimant, a credit is not allowed unless a joint
income tax return is filed.

(b) For a nonresident or part-year resident, the credit determined under subdivision 1
and the maximum credit amount in paragraph (a) must be allocated using the percentage
calculated in section 290.06, subdivision 2c, paragraph (e).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
 new text end

Sec. 16.

Minnesota Statutes 2014, section 290.0674, is amended by adding a
subdivision to read:


new text begin Subd. 2a. new text end

new text begin Income. new text end

new text begin (a) For purposes of this section, "income" means the sum of
the following:
 new text end

new text begin (1) federal adjusted gross income as defined in section 62 of the Internal Revenue
Code; and
 new text end

new text begin (2) the sum of the following amounts to the extent not included in clause (1):
 new text end

new text begin (i) all nontaxable income;
 new text end

new text begin (ii) the amount of a passive activity loss that is not disallowed as a result of section
469, paragraph (i) or (m), of the Internal Revenue Code and the amount of passive activity
loss carryover allowed under section 469(b) of the Internal Revenue Code;
 new text end

new text begin (iii) an amount equal to the total of any discharge of qualified farm indebtedness
of a solvent individual excluded from gross income under section 108(g) of the Internal
Revenue Code;
 new text end

new text begin (iv) cash public assistance and relief;
 new text end

new text begin (v) any pension or annuity (including railroad retirement benefits, all payments
received under the federal Social Security Act, Supplemental Security Income, and
veterans benefits), which was not exclusively funded by the claimant or spouse, or which
was funded exclusively by the claimant or spouse and which funding payments were
excluded from federal adjusted gross income in the years when the payments were made;
 new text end

new text begin (vi) interest received from the federal or a state government or any instrumentality
or political subdivision thereof;
 new text end

new text begin (vii) workers' compensation;
 new text end

new text begin (viii) nontaxable strike benefits;
 new text end

new text begin (ix) the gross amounts of payments received in the nature of disability income or
sick pay as a result of accident, sickness, or other disability, whether funded through
insurance or otherwise;
 new text end

new text begin (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;
 new text end

new text begin (xi) contributions made by the claimant to an individual retirement account,
including a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k)
of the Internal Revenue Code; or deferred compensation plan under section 457 of the
Internal Revenue Code;
 new text end

new text begin (xii) nontaxable scholarship or fellowship grants;
 new text end

new text begin (xiii) the amount of deduction allowed under section 199 of the Internal Revenue
Code;
 new text end

new text begin (xiv) the amount of deduction allowed under section 220 or 223 of the Internal
Revenue Code;
 new text end

new text begin (xv) the amount deducted for tuition expenses under section 222 of the Internal
Revenue Code; and
 new text end

new text begin (xvi) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code.
 new text end

new text begin In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" means federal adjusted gross income reflected in the
fiscal year ending in the next calendar year. Federal adjusted gross income may not be
reduced by the amount of a net operating loss carryback or carryforward or a capital loss
carryback or carryforward allowed for the year.
 new text end

new text begin (b) "Income" does not include:
 new text end

new text begin (1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
 new text end

new text begin (2) amounts of any pension or annuity that were exclusively funded by the claimant
or spouse if the funding payments were not excluded from federal adjusted gross income
in the years when the payments were made;
 new text end

new text begin (3) surplus food or other relief in kind supplied by a governmental agency;
 new text end

new text begin (4) relief granted under chapter 290A;
 new text end

new text begin (5) child support payments received under a temporary or final decree of dissolution
or legal separation; and
 new text end

new text begin (6) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of
2001, Public Law 107-16.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
 new text end

Sec. 17.

Minnesota Statutes 2014, section 290.0677, subdivision 1a, is amended to read:


Subd. 1a.

Credit allowed; past military service.

(a) A qualified individual is
allowed a credit against the tax imposed under this chapter for past military service.
The credit equals deleted text begin $750deleted text end new text begin $1,000new text end . The credit allowed under this subdivision is reduced by
ten percent of adjusted gross income in excess of deleted text begin $30,000deleted text end new text begin $50,000new text end , but in no case is
the credit less than zero.

(b) For a nonresident or a part-year resident, the credit under this subdivision
must be allocated based on the percentage calculated under section 290.06, subdivision
2c, paragraph (e).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
 new text end

Sec. 18.

Minnesota Statutes 2014, section 290.068, subdivision 2, is amended to read:


Subd. 2.

Definitions.

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

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

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

(c) "Base amount" means base amount as defined in section 41(c) of the Internal
Revenue Code, except that the average annual gross receipts must be calculated using
Minnesota sales or receipts under section 290.191 and the definitions contained in clauses
(a) and (b) shall apply.new text begin If there are inadequate records or the records are unavailable to
compute or verify the base percentage, a fixed base percentage of 16 percent must be used.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
 new text end

Sec. 19.

new text begin [290.0682] CREDIT FOR ATTAINING MASTER'S DEGREE IN
TEACHER'S LICENSURE FIELD.
 new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given them.
 new text end

new text begin (b) "Master's degree program" means a graduate-level program at an accredited
university leading to a master of arts or science degree in a core content area directly
related to a qualified teacher's licensure field. The master's degree program may not
include pedagogy or a pedagogy component. To be eligible under this credit, a licensed
elementary school teacher must pursue and complete a master's degree program in a core
content area in which the teacher provides direct classroom instruction.
 new text end

new text begin (c) "Qualified teacher" means a K-12 teacher who:
 new text end

new text begin (1) holds a continuing license granted by the Minnesota Board of Teaching both
when the teacher begins the master's degree program and when the teacher completes the
master's degree program;
 new text end

new text begin (2) began a master's degree program after June 30, 2016; and
 new text end

new text begin (3) completes the master's degree program during the taxable year.
 new text end

new text begin (d) "Core content area" means the academic subject of reading, English or language
arts, mathematics, science, foreign languages, civics and government, economics, arts,
history, or geography.
 new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) An individual who is a qualified teacher is allowed a
credit against the tax imposed under this chapter. The credit equals $2,500.
 new text end

new text begin (b) For a nonresident or a part-year resident, the credit under this subdivision
must be allocated based on the percentage calculated under section 290.06, subdivision
2c, paragraph (e).
 new text end

new text begin (c) A qualified teacher may claim the credit in this section only one time for each
master's degree program completed in a core content area.
 new text end

new text begin Subd. 3. new text end

new text begin Credit refundable. new text end

new text begin (a) If the amount of the credit for which an individual
is eligible exceeds the individual's liability for tax under this chapter, the commissioner
shall refund the excess to the individual.
 new text end

new text begin (b) The amount necessary to pay the refunds required by this section is appropriated
to the commissioner from the general fund.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
 new text end

Sec. 20.

new text begin [290.0683] STUDENT LOAN CREDIT.
 new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Adjusted gross income" means federal adjusted gross income as defined in
section 62 of the Internal Revenue Code. In the case of a married couple filing jointly,
"adjusted gross income" means the adjusted gross income of the taxpayer and spouse.
 new text end

new text begin (c) "Earned income" has the meaning given in section 32(c) of the Internal Revenue
Code, except that "earned income" includes combat pay excluded from federal taxable
income under section 112 of the Internal Revenue Code.
 new text end

new text begin (d) "Education profession" means:
 new text end

new text begin (1) a full-time job in public education; early childhood education, including licensed
or regulated child care, Head Start, and state-funded prekindergarten; school-based library
sciences; and other school-based services; or
 new text end

new text begin (2) a full-time job as a faculty member at a tribal college or university as defined in
section 1059c(b) of the Internal Revenue Code, and other faculty teaching in high-needs
subject areas or areas of shortage, including nurse faculty, foreign language faculty, and
part-time faculty at community colleges, as determined by the United States Secretary
of Education.
 new text end

new text begin (e) "Eligible individual" means an individual who has one or more qualified
education loans related to an undergraduate or graduate degree program of the individual
at a postsecondary educational institution.
 new text end

new text begin (f) "Eligible loan payments" means the amount the eligible individual paid during
the taxable year to pay principal and interest on qualified education loans.
 new text end

new text begin (g) "Postsecondary educational institution" means a postsecondary institution
eligible for state student aid under section 136A.103 or, if the institution is not located in
this state, a postsecondary institution participating in the federal Pell Grant program under
Title IV of the Higher Education Act of 1965, Public Law 89-329, as amended.
 new text end

new text begin (h) "Public service job" means a full-time job in emergency management;
government, excluding time served as a member of Congress; military service; public
safety; law enforcement; public health, including nurses, nurse practitioners, nurses
in a clinical setting, and full-time professionals engaged in health care practitioner
occupations and health care support occupations, as such terms are defined by the Bureau
of Labor Statistics; social work in a public child or family service agency; public interest
law services including prosecution or public defense or legal advocacy on behalf of
low-income communities at a nonprofit organization; public service for individuals with
disabilities or public service for the elderly; public library sciences; or at an organization
that is described in section 501(c)(3) of the Internal Revenue Code and exempt from
taxation under section 501(a) of the Internal Revenue Code.
 new text end

new text begin (i) "Qualified education loan" has the meaning given in section 221 of the Internal
Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual.
 new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) An eligible individual is allowed a credit against the
tax due under this chapter. The credit equals a percentage of eligible loan payments in
excess of ten percent of adjusted gross income, up to $1,000, as follows:
 new text end

new text begin (1) for eligible individuals, 50 percent;
 new text end

new text begin (2) for eligible individuals in a public service job, 65 percent; and
 new text end

new text begin (3) for eligible individuals in an education profession, 75 percent.
 new text end

new text begin (b) The credit must not exceed the eligible individual's earned income for the taxable
year.
 new text end

new text begin (c) In the case of a married couple filing a joint return, each spouse is eligible for
the credit in this section.
 new text end

new text begin (d) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
 new text end

new text begin (e) An eligible individual may receive the credit under this section without regard to
the individual's eligibility for the public service loan forgiveness program under United
States Code, title 20, section 1087e(m).
 new text end

new text begin Subd. 3. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit that an individual who is a
resident or part-year resident of Minnesota is eligible to receive under this section exceeds
the individual's tax liability under this chapter, the commissioner shall refund the excess
to the individual. For a nonresident taxpayer, the credit may not exceed the taxpayer's
liability for tax under this chapter.
 new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this
section is appropriated to the commissioner from the general fund.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
 new text end

Sec. 21.

new text begin [290.0684] SECTION 529 COLLEGE SAVINGS PLAN CREDIT.
 new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the term "federal adjusted
gross income" has the meaning given under section 62(a) of the Internal Revenue Code,
and "nonqualified distribution" means any distribution that is includible in gross income
under section 529 of the Internal Revenue Code.
 new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) A credit of up to $500 is allowed to a resident
individual against the tax imposed by this chapter, subject to the limitations in paragraph
(b). The credit is not allowed to an individual who is eligible to be claimed as a dependent,
as defined in sections 151 and 152 of the Internal Revenue Code.
 new text end

new text begin (b) The credit allowed must be calculated by applying the following rates to the
amount contributed to an account in a plan qualifying under section 529 of the Internal
Revenue Code, in a taxable year, reduced by any withdrawals from the account made
during the taxable year, and not including any amounts rolled over from other accounts in
plans qualifying under section 529 of the Internal Revenue Code:
 new text end

new text begin (1) 50 percent for individual filers and married couples filing a joint return who have
federal adjusted gross income of not more than $80,000;
 new text end

new text begin (2) 25 percent for married couples filing a joint return who have federal adjusted
gross income over $80,000, but not more than $100,000;
 new text end

new text begin (3) ten percent for married couples filing a joint return who have federal adjusted
gross income over $100,000, but not more than $120,000; and
 new text end

new text begin (4) five percent for married couples filing a joint return who have federal adjusted
gross income over $120,000, but not more than $160,000.
 new text end

new text begin (c) The income thresholds in paragraph (b), clauses (1) to (4), used to calculate the
credit, must be adjusted for inflation. The commissioner shall adjust by the percentage
determined under the provisions of section 1(f) of the Internal Revenue Code, except that
in section 1(f)(3)(B) the word "2015" is substituted for the word "1992." For 2017, the
commissioner shall then determine the percent change from the 12 months ending on
August 31, 2015, to the 12 months ending on August 31, 2016, and in each subsequent
year, from the 12 months ending on August 31, 2015, to the 12 months ending on August
31 of the year preceding the taxable year. The income thresholds as adjusted for inflation
must be rounded to the nearest $10 amount. If the amount ends in $5, the amount is
rounded up to the nearest $10 amount. The determination of the commissioner under this
subdivision is not a rule under the Administrative Procedure Act including section 14.386.
 new text end

new text begin Subd. 3. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit that an individual is eligible
to receive under this section exceeds the individual's tax liability under this chapter, the
commissioner shall refund the excess to the individual.
 new text end

new text begin Subd. 4. new text end

new text begin Allocation. new text end

new text begin For a part-year resident, the credit must be allocated based on
the percentage calculated under section 290.06, subdivision 2c, paragraph (e).
 new text end

new text begin Subd. 5. new text end

new text begin Recapture of credit. new text end

new text begin In the case of a nonqualified distribution, the
taxpayer is liable to the commissioner for the lesser of: ten percent of the amount of the
nonqualified distribution, or the sum of credits received under this section for all years.
 new text end

new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this
section is appropriated to the commissioner from the general fund.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
 new text end

Sec. 22.

new text begin [290.0803] SECTION 179 EXPENSING SUBTRACTION.
 new text end

new text begin Subdivision 1. new text end

new text begin Current year allowance. new text end

new text begin (a) In each of the five tax years
immediately following the tax year in which an addition is required under section 290.01,
subdivision 19a, clause (8), or 19c, clause (13), the current year allowance equals one-fifth
of the addition made by the taxpayer under section 290.01, subdivision 19a, clause (8),
or 19c, clause (13).
 new text end

new text begin (b) In the case of a shareholder of a corporation that is an S corporation, the current
year allowance is reduced by the positive value of any net operating loss under section
172 of the Internal Revenue Code generated for the tax year of the addition and, if the net
operating loss exceeds the addition for the tax year, the current year allowance is zero.
 new text end

new text begin Subd. 2. new text end

new text begin Section 179 expensing carryover. new text end

new text begin For purposes of this section, the current
year allowance determined under subdivision 1 is considered to be the last modification
allowed under section 290.01, subdivision 19b or 19d, in determining net income. If the
amount allowed under subdivision 1 exceeds net income computed without regard to the
current year allowance, then the excess is a section 179 expensing carryover to each of the
ten succeeding taxable years. The entire amount of the section 179 expensing carryover
is carried first to the earliest taxable year to which the section 179 expensing carryover
may be carried and then to each successive year to which the section 179 expensing
carryover may be carried.
 new text end

new text begin Subd. 3. new text end

new text begin Section 179 expensing subtraction. new text end

new text begin A taxpayer is allowed a section 179
expensing subtraction from federal taxable income under section 290.01, subdivision 19b
or 19d. The subtraction equals the sum of:
 new text end

new text begin (1) the current year allowance determined under subdivision 1; and
 new text end

new text begin (2) any section 179 expensing carryover from prior taxable years determined under
subdivision 2.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
 new text end

Sec. 23.

Minnesota Statutes 2014, section 290.091, subdivision 2, is amended to read:


Subd. 2.

Definitions.

For purposes of the tax imposed by this section, the following
terms have the meanings given:

(a) "Alternative minimum taxable income" means the sum of the following for
the taxable year:

(1) the taxpayer's federal alternative minimum taxable income as defined in section
55(b)(2) of the Internal Revenue Code;

(2) the taxpayer's itemized deductions allowed in computing federal alternative
minimum taxable income, but excluding:

(i) the charitable contribution deduction under section 170 of the Internal Revenue
Code;

(ii) the medical expense deduction;

(iii) the casualty, theft, and disaster loss deduction; and

(iv) the impairment-related work expenses of a disabled person;

(3) for depletion allowances computed under section 613A(c) of the Internal
Revenue Code, with respect to each property (as defined in section 614 of the Internal
Revenue Code), to the extent not included in federal alternative minimum taxable income,
the excess of the deduction for depletion allowable under section 611 of the Internal
Revenue Code for the taxable year over the adjusted basis of the property at the end of the
taxable year (determined without regard to the depletion deduction for the taxable year);

(4) to the extent not included in federal alternative minimum taxable income, the
amount of the tax preference for intangible drilling cost under section 57(a)(2) of the
Internal Revenue Code determined without regard to subparagraph (E);

(5) to the extent not included in federal alternative minimum taxable income, the
amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and

(6) the amount of addition required by section 290.01, subdivision 19a, clauses (7)
to (9), and (11) to (14);

less the sum of the amounts determined under the following:

(1) interest income as defined in section 290.01, subdivision 19b, clause (1);

(2) an overpayment of state income tax as provided by section 290.01, subdivision
19b, clause (2), to the extent included in federal alternative minimum taxable income;

(3) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as
defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include
amounts deducted in computing federal adjusted gross income;

(4) amounts subtracted from federal taxable income as provided by section 290.01,
subdivision 19b, clauses (6), (8) to (14), (16), and deleted text begin (21)deleted text end new text begin (22)new text end ; and

(5) the amount of the net operating loss allowed under section 290.095, subdivision
11, paragraph (c).

In the case of an estate or trust, alternative minimum taxable income must be
computed as provided in section 59(c) of the Internal Revenue Code.

(b) "Investment interest" means investment interest as defined in section 163(d)(3)
of the Internal Revenue Code.

(c) "Net minimum tax" means the minimum tax imposed by this section.

(d) "Regular tax" means the tax that would be imposed under this chapter (without
regard to this section and section 290.032), reduced by the sum of the nonrefundable
credits allowed under this chapter.

(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable
income after subtracting the exemption amount determined under subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
 new text end

Sec. 24.

Minnesota Statutes 2015 Supplement, section 290A.03, subdivision 15,
is amended to read:


Subd. 15.

Internal Revenue Code.

"Internal Revenue Code" means the Internal
Revenue Code of 1986, as amended through December 31, deleted text begin 2014deleted text end new text begin 2015new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for property tax refunds
based on property taxes payable after December 31, 2015, and rent paid after December
31, 2014.
 new text end

Sec. 25.

Minnesota Statutes 2015 Supplement, section 291.005, subdivision 1, is
amended to read:


Subdivision 1.

Scope.

Unless the context otherwise clearly requires, the following
terms used in this chapter shall have the following meanings:

(1) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.

(2) "Federal gross estate" means the gross estate of a decedent as required to be valued
and otherwise determined for federal estate tax purposes under the Internal Revenue Code,
increased by the value of any property in which the decedent had a qualifying income
interest for life and for which an election was made under section 291.03, subdivision 1d,
for Minnesota estate tax purposes, but was not made for federal estate tax purposes.

(3) "Internal Revenue Code" means the United States Internal Revenue Code of
1986, as amended through December 31, deleted text begin 2014deleted text end new text begin 2015new text end .

(4) "Minnesota gross estate" means the federal gross estate of a decedent after
(a) excluding therefrom any property included in the estate which has its situs outside
Minnesota, and (b) including any property omitted from the federal gross estate which
is includable in the estate, has its situs in Minnesota, and was not disclosed to federal
taxing authorities.

(5) "Nonresident decedent" means an individual whose domicile at the time of
death was not in Minnesota.

(6) "Personal representative" means the executor, administrator or other person
appointed by the court to administer and dispose of the property of the decedent. If there
is no executor, administrator or other person appointed, qualified, and acting within this
state, then any person in actual or constructive possession of any property having a situs in
this state which is included in the federal gross estate of the decedent shall be deemed
to be a personal representative to the extent of the property and the Minnesota estate tax
due with respect to the property.

(7) "Resident decedent" means an individual whose domicile at the time of death
was in Minnesota.new text begin The provisions of section 290.01, subdivision 7, paragraphs (c) and
(d), apply to determinations of domicile under this chapter.
new text end

(8) "Situs of property" means, with respect to:

(i) real property, the state or country in which it is located;

(ii) tangible personal property, the state or country in which it was normally kept
or located at the time of the decedent's death or for a gift of tangible personal property
within three years of death, the state or country in which it was normally kept or located
when the gift was executed;

(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
Code, owned by a nonresident decedent and that is normally kept or located in this state
because it is on loan to an organization, qualifying as exempt from taxation under section
501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is
deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and

(iv) intangible personal property, the state or country in which the decedent was
domiciled at death or for a gift of intangible personal property within three years of death,
the state or country in which the decedent was domiciled when the gift was executed.

For a nonresident decedent with an ownership interest in a pass-through entity with
assets that include real or tangible personal property, situs of the real or tangible personal
property, including qualified works of art, is determined as if the pass-through entity does
not exist and the real or tangible personal property is personally owned by the decedent.
If the pass-through entity is owned by a person or persons in addition to the decedent,
ownership of the property is attributed to the decedent in proportion to the decedent's
capital ownership share of the pass-through entity.

(9) "Pass-through entity" includes the following:

(i) an entity electing S corporation status under section 1362 of the Internal Revenue
Code;

(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;

(iii) a single-member limited liability company or similar entity, regardless of
whether it is taxed as an association or is disregarded for federal income tax purposes
under Code of Federal Regulations, title 26, section 301.7701-3; or

(iv) a trust to the extent the property is includible in the decedent's federal gross
estate; but excludes

(v) an entity whose ownership interest securities are traded on an exchange regulated
by the Securities and Exchange Commission as a national securities exchange under
section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after December 31, 2015.
 new text end

Sec. 26.

Minnesota Statutes 2014, section 291.03, is amended by adding a subdivision
to read:


new text begin Subd. 12. new text end

new text begin Certain dispositions to government entities. new text end

new text begin Notwithstanding any
provision of this section, no taxpayer is disqualified for the subtraction provided under
section 291.016, subdivision 3, nor is any taxpayer liable for the recapture tax provided in
subdivision 11, solely because the state, any local government unit, or any other entity
that has the power of eminent domain acquires title or possession of the land for a public
purpose within the three-year holding period.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 27. new text begin AMENDED RETURNS.
new text end

new text begin Subdivision 1. new text end

new text begin Certain IRA rollovers. new text end

new text begin An individual who excludes an amount
from net income in a prior taxable year through rollover of an airline payment amount to
a traditional IRA, as authorized under Public Law 114-113, division Q, title III, section
307, may file an amended individual income tax return and claim for refund of state taxes
as provided under Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by
September 1, 2016.
 new text end

new text begin Subd. 2. new text end

new text begin Exclusion for certain incarcerated individuals. new text end

new text begin An individual who
excludes from net income in a prior taxable year civil damages, restitution, or other
monetary award received as compensation for a wrongful incarceration, as authorized
under Public Law 114-113, division Q, title III, section 304, may file an amended
individual income tax return and claim for refund of state taxes as provided under
Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by September 1, 2016.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 28. new text begin ESTATE TAX REVIEW; TEMPORARY LIMIT ON ASSESSMENTS.
new text end

new text begin (a) The commissioner of revenue shall:
 new text end

new text begin (1) review the estate tax's definition of qualified farm property and its linkage to the
property tax classification of the property during the three-year period following the
death of the decedent; and
 new text end

new text begin (2) by February 1, 2017, report to the committees of the house of representatives
and the senate with jurisdiction over taxes on alternative methods of ensuring that the
use of the property by qualified heirs during the three-year period after the decedent's
death is consistent with the purpose of limiting the subtraction to properties where its use
continues that of the decedent without any material change in its use by the qualified heirs
and its ownership is consistent with maintaining family ownership of the farm.
 new text end

new text begin (b) Prior to June 1, 2017, the commissioner of revenue shall not assess recapture tax
under Minnesota Statutes, section 291.03, subdivision 11, for a change in the property tax
classification of agricultural homestead property if the following conditions are satisfied:
 new text end

new text begin (1) the property is held in a trust of which the surviving spouse is a beneficiary; and
 new text end

new text begin (2) the property receives partial homestead classification because a beneficiary of
the trust is the owner of another agricultural homestead.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 29. new text begin INDIVIDUAL INCOME TAX COLLECTION ACTION PROHIBITED.
new text end

new text begin Notwithstanding any law to the contrary, the commissioner of revenue shall not
increase the amount due or decrease the refund for an individual income tax return for
the taxable year beginning after December 31, 2014, and before January 1, 2016, to the
extent the amount due was understated or the refund was overstated because the taxpayer
calculated the tax or refund based on the Internal Revenue Code, as amended through
December 31, 2014, rather than based on the Internal Revenue Code, as amended through
December 31, 2015, as provided in this act.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 30. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 290.067, subdivisions 2 and 2a, new text end new text begin are repealed.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
 new text end

ARTICLE 4

SALES AND USE TAXES

Section 1.

Minnesota Statutes 2014, section 297A.61, subdivision 3, is amended to read:


Subd. 3.

Sale and purchase.

(a) "Sale" and "purchase" include, but are not limited
to, each of the transactions listed in this subdivision. In applying the provisions of this
chapter, the terms "tangible personal property" and "retail sale" include the taxable
services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision
of these taxable services, unless specifically provided otherwise. Services performed by
an employee for an employer are not taxable. Services performed by a partnership or
association for another partnership or association are not taxable if one of the entities owns
or controls more than 80 percent of the voting power of the equity interest in the other
entity. Services performed between members of an affiliated group of corporations are not
taxable. For purposes of the preceding sentence, "affiliated group of corporations" means
those entities that would be classified as members of an affiliated group as defined under
United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b).

(b) Sale and purchase include:

(1) any transfer of title or possession, or both, of tangible personal property, whether
absolutely or conditionally, for a consideration in money or by exchange or barter; and

(2) the leasing of or the granting of a license to use or consume, for a consideration
in money or by exchange or barter, tangible personal property, other than a manufactured
home used for residential purposes for a continuous period of 30 days or more.

(c) Sale and purchase include the production, fabrication, printing, or processing of
tangible personal property for a consideration for consumers who furnish either directly or
indirectly the materials used in the production, fabrication, printing, or processing.

(d) Sale and purchase include the preparing for a consideration of food.
Notwithstanding section 297A.67, subdivision 2, taxable food includes, but is not limited
to, the following:

(1) prepared food sold by the retailer;

(2) soft drinks;

(3) candy;

(4) dietary supplements; and

(5) all food sold through vending machines.

(e) A sale and a purchase includes the furnishing for a consideration of electricity,
gas, water, or steam for use or consumption within this state.

(f) A sale and a purchase includes the transfer for a consideration of prewritten
computer software whether delivered electronically, by load and leave, or otherwise.

(g) A sale and a purchase includes the furnishing for a consideration of the following
services:

(1) the privilege of admission to places of amusement, recreational areas, or athletic
events, and the making available of amusement devices, tanning facilities, reducing
salons, steam baths, health clubs, and spas or athletic facilities;

(2) lodging and related services by a hotel, rooming house, resort, campground,
motel, or trailer camp, including furnishing the guest of the facility with access to
telecommunication services, and the granting of any similar license to use real property in
a specific facility, other than the renting or leasing of it for a continuous period of 30 days
or more under an enforceable written agreement that may not be terminated without prior
notice and including accommodations intermediary services provided in connection with
other services provided under this clause;

(3) nonresidential parking services, whether on a contractual, hourly, or other
periodic basis, except for parking at a meter;

(4) the granting of membership in a club, association, or other organization if:

(i) the club, association, or other organization makes available for the use of its
members sports and athletic facilities, without regard to whether a separate charge is
assessed for use of the facilities; and

(ii) use of the sports and athletic facility is not made available to the general public
on the same basis as it is made available to members.

Granting of membership means both onetime initiation fees and periodic membership
dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and
squash courts; basketball and volleyball facilities; running tracks; exercise equipment;
swimming pools; and other similar athletic or sports facilities;

(5) delivery of aggregate materials by a third party, excluding delivery of aggregate
material used in road construction; and delivery of concrete block by a third party if the
delivery would be subject to the sales tax if provided by the seller of the concrete block.
For purposes of this clause, "road construction" means construction of:

(i) public roads;

(ii) cartways; and

(iii) private roads in townships located outside of the seven-county metropolitan area
up to the point of the emergency response location sign; and

(6) services as provided in this clause:

(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
include services provided by coin operated facilities operated by the customer;

(ii) motor vehicle washing, waxing, and cleaning services, including services
provided by coin operated facilities operated by the customer, and rustproofing,
undercoating, and towing of motor vehicles;

(iii) building and residential cleaning, maintenance, and disinfecting services and
pest control and exterminating services;

(iv) detective, security, burglar, fire alarm, and armored car services; but not
including services performed within the jurisdiction they serve by off-duty licensed peace
officers as defined in section 626.84, subdivision 1, or services provided by a nonprofit
organization or any organization at the direction of a county for monitoring and electronic
surveillance of persons placed on in-home detention pursuant to court order or under the
direction of the Minnesota Department of Corrections;

(v) pet grooming services;

(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor
plant care; tree, bush, shrub, and stump removal, except when performed as part of a land
clearing contract as defined in section 297A.68, subdivision 40; and tree trimming for
public utility lines. Services performed under a construction contract for the installation of
shrubbery, plants, sod, trees, bushes, and similar items are not taxable;

(vii) massages, except when provided by a licensed health care facility or
professional or upon written referral from a licensed health care facility or professional for
treatment of illness, injury, or disease; and

(viii) the furnishing of lodging, board, and care services for animals in kennels and
other similar arrangements, but excluding veterinary and horse boarding services.

(h) A sale and a purchase includes the furnishing for a consideration of tangible
personal property or taxable services by the United States or any of its agencies or
instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political
subdivisions.

(i) A sale and a purchase includes the furnishing for a consideration of
telecommunications services, ancillary services associated with telecommunication
services, and pay television services. Telecommunication services include, but are
not limited to, the following services, as defined in section 297A.669: air-to-ground
radiotelephone service, mobile telecommunication service, postpaid calling service,
prepaid calling service, prepaid wireless calling service, and private communication
services. The services in this paragraph are taxed to the extent allowed under federal law.

(j) A sale and a purchase includes the furnishing for a consideration of installation if
the installation charges would be subject to the sales tax if the installation were provided
by the seller of the item being installed.

(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer
to a customer when (1) the vehicle is rented by the customer for a consideration, or (2)
the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section
59B.02, subdivision 11.

(l) A sale and a purchase includes furnishing for a consideration of specified digital
products or other digital products or granting the right for a consideration to use specified
digital products or other digital products on a temporary or permanent basis and regardless
of whether the purchaser is required to make continued payments for such right. Wherever
the term "tangible personal property" is used in this chapter, other than in subdivisions 10
and 38, the provisions also apply to specified digital products, or other digital products,
unless specifically provided otherwise or the context indicates otherwise.

new text begin (m) The sale of the privilege of admission under section 297A.61, subdivision 3,
paragraph (g), clause (1), to a place of amusement or athletic event includes all charges
included in the privilege of admission's sales price, without deduction for amenities that
may be provided, unless the amenities are separately stated and the purchaser of the
privilege of admission is entitled to add or decline the amenities, and the amenities are not
otherwise taxable.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2014, section 297A.66, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) To the extent allowed by the United States
Constitution and the laws of the United States, "retailer maintaining a place of business in
this state," or a similar term, means a retailer:

(1) having or maintaining within this state, directly or by a subsidiary or an affiliate,
an office, place of distribution, salesnew text begin , storage,new text end or sample room or place, warehouse, or
other place of businessnew text begin , including the employment of a resident of this state who works
from a home office in this statenew text end ; or

(2) having a representative, including, but not limited to, an affiliate, agent,
salesperson, canvasser, deleted text begin ordeleted text end new text begin marketplace provider,new text end solicitornew text begin , or other third party new text end operating in
this state under the authority of the retailer or its subsidiary, for any purpose, including the
repairing, selling, delivering, installing, new text begin facilitating sales, processing sales, new text end or soliciting of
orders for the retailer's goods or services, or the leasing of tangible personal property located
in this state, whether the place of business or agent, representative, affiliate, salesperson,
canvasser, or solicitor is located in the state permanently or temporarily, or whether or not
the retailer, subsidiary, or affiliate is authorized to do business in this state.new text begin A retailer is
represented by a marketplace provider in this state if the retailer makes sales in this state
facilitated by a marketplace provider that maintains a place of business in this state.
new text end

(b) "Destination of a sale" means the location to which the retailer makes delivery of
the property sold, or causes the property to be delivered, to the purchaser of the property,
or to the agent or designee of the purchaser. The delivery may be made by any means,
including the United States Postal Service or a for-hire carrier.

new text begin (c) "Marketplace provider" means any person who facilitates a retail sale by a
retailer by:
 new text end

new text begin (1) listing or advertising for sale by the retailer in any forum, tangible personal
property, services, or digital goods that are subject to tax under this chapter; and
 new text end

new text begin (2) either directly or indirectly through agreements or arrangements with third
parties collecting payment from the customer and transmitting that payment to the
retailer regardless of whether the marketplace provider receives compensation or other
consideration in exchange for its services.
 new text end

new text begin (d) "Total taxable retail sales" means the gross receipts from the sale of all tangible
goods, services, and digital goods subject to sales and use tax under this chapter.
 new text end

Sec. 3.

Minnesota Statutes 2014, section 297A.66, subdivision 2, is amended to read:


Subd. 2.

Retailer maintaining place of business in this state.

new text begin (a) Except as
provided in paragraph (b), new text end a retailer maintaining a place of business in this state who
makes retail sales in Minnesota or to a destination in Minnesota shall collect sales and use
taxes and remit them to the commissioner under section 297A.77.

new text begin (b) A retailer with total taxable retail sales to customers in this state of less than
$10,000 in the 12-month period ending on the last day of the most recently completed
calendar quarter is not required to collect and remit sales tax if it is determined to be a
retailer maintaining a place of business in the state solely because it made sales through
one or more marketplace providers. The provisions of this paragraph do not apply to a
retailer that is or was registered to collect sales and use tax in this state.
 new text end

Sec. 4.

Minnesota Statutes 2014, section 297A.66, subdivision 4, is amended to read:


Subd. 4.

Affiliated entities.

(a) An entity is an "affiliate" of the retailer for purposes
of subdivision 1, paragraph (a), ifnew text begin the entitynew text end :

(1) deleted text begin the entitydeleted text end uses its facilities or employees in this state to advertise, promote, or
facilitate the establishment or maintenance of a market for sales of items by the retailer
to purchasers in this state or for the provision of services to the retailer's purchasers in
this state, such as accepting returns of purchases for the retailer, providing assistance in
resolving customer complaints of the retailer, or providing other services; deleted text begin and
deleted text end

(2) deleted text begin the retailer and the entity are related parties.deleted text end new text begin has the same or a similar business
name to the retailer and sells, from a location or locations in this state, tangible personal
property, digital goods, or services, taxable under this chapter, that are similar to that
sold by the retailer;
new text end

new text begin (3) maintains an office, distribution facility, salesroom, warehouse, storage place, or
other similar place of business in this state to facilitate the delivery of tangible personal
property, digital goods, or services sold by the retailer to its customers in this state;
 new text end

new text begin (4) maintains a place of business in this state and uses trademarks, service marks,
or trade names in this state that are the same or substantially similar to those used by
the retailer, and that use is done with the express or implied consent of the holder of
the marks or names;
 new text end

new text begin (5) delivers, installs, or assembles tangible personal property in this state, or
performs maintenance or repair services on tangible personal property in this state, for
tangible personal property sold by the retailer;
 new text end

new text begin (6) facilitates the delivery of tangible personal property to customers of the retailer
by allowing the customers to pick up tangible personal property sold by the retailer at a
place of business the entity maintains in this state; or
 new text end

new text begin (7) shares management, business systems, business practices, or employees with the
retailer, or engages in intercompany transactions with the retailer related to the activities
that establish or maintain the market in this state of the retailer.
 new text end

(b) Two entities are related parties under this section if one of the entities meets at
least one of the following tests with respect to the other entity:

(1) one or both entities is a corporation, and one entity and any party related to that
entity in a manner that would require an attribution of stock from the corporation to the
party or from the party to the corporation under the attribution rules of section 318 of the
Internal Revenue Code owns directly, indirectly, beneficially, or constructively at least 50
percent of the value of the corporation's outstanding stock;

(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary,
and the partnership, estate, or trust and its partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital,
stock, or value of the other entity or both entities; deleted text begin or
deleted text end

(3) an individual stockholder and the members of the stockholder's family (as
defined in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially,
or constructively, in the aggregate, at least 50 percent of the value of both entities'
outstanding stockdeleted text begin .deleted text end new text begin ;
new text end

new text begin (4) the entities are related within the meaning of subsections (b) and (c) of section
267 or 707(b)(1) of the Internal Revenue Code; or
 new text end

new text begin (5) the entities have one or more ownership relationships and the relationships were
designed with a principal purpose of avoiding the application of this section.
 new text end

(c) An entity is an affiliate under the provisions of this subdivision if the requirements
of paragraphs (a) and (b) are met during any part of the 12-month period ending on the
first day of the month before the month in which the sale was made.

Sec. 5.

Minnesota Statutes 2014, section 297A.66, is amended by adding a subdivision
to read:


new text begin Subd. 4b. new text end

new text begin Collection and remittance requirements for marketplace providers
and marketplace sellers. new text end

new text begin (a) A marketplace provider shall collect sales and use taxes
and remit them to the commissioner under section 297A.77 for all facilitated sales for a
retailer, and is subject to audit on the retail sales it facilitates unless the retailer either:
 new text end

new text begin (1) provides a copy of the retailer's registration to collect sales and use tax in this
state to the marketplace provider before the marketplace provider facilitates a sale; or
 new text end

new text begin (2) upon inquiry by the marketplace provider or its agent, the commissioner
discloses that the retailer is registered to collect sales and use taxes in this state.
 new text end

new text begin (b) Nothing in this subdivision shall be construed to interfere with the ability of a
marketplace provider and a retailer to enter into an agreement regarding fulfillment of
the requirements of this chapter.
 new text end

new text begin (c) A marketplace provider is not liable under this subdivision for failure to file and
collect and remit sales and use taxes if the marketplace provider demonstrates that the
error was due to incorrect or insufficient information given to the marketplace provider by
the retailer. This paragraph does not apply if the marketplace provider and the marketplace
seller are related as defined in subdivision 4, paragraph (b).
 new text end

Sec. 6.

Minnesota Statutes 2014, section 297A.67, subdivision 7a, is amended to read:


Subd. 7a.

Accessories and supplies.

Accessories and supplies required for the
effective use of durable medical equipment for home use only or purchased in a transaction
covered by Medicare deleted text begin ordeleted text end new text begin ,new text end Medicaid,new text begin or other health insurance plan,new text end that are not already
exempt under subdivision 7, are exempt. Accessories and supplies for the effective use
of a prosthetic device, that are not already exempt under subdivision 7, are exempt.
For purposes of this subdivision "durable medical equipment," "prosthetic device,"
"Medicare," and "Medicaid" have the definitions given in subdivision 7deleted text begin .deleted text end new text begin , and "other health
insurance plan" means a health plan defined in section 62A.011, subdivision 3, or 62V.02,
subdivision 4, or a qualified health plan defined in section 62A.011, subdivision 7.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 7.

Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision
to read:


new text begin Subd. 34. new text end

new text begin Suite licenses. new text end

new text begin The sale of the privilege of admission under section
297A.61, subdivision 3, paragraph (g), clause (1), to a place of amusement or athletic
event does not include consideration paid for a license to use a private suite, private
skybox, or private box seat provided that: (1) the lessee may use the private suite, private
skybox, or private box seat by mutual arrangement with the lessor on days when there is
no amusement or athletic event; and (2) the sales price for the privilege of admission is
separately stated and is equal to or greater than the highest priced general admission ticket
for the closest seat not in the private suite, private skybox, or private box seat.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 8.

Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision
to read:


new text begin Subd. 35. new text end

new text begin Stadium builder's licenses. new text end

new text begin The sale of the privilege of admission under
section 297A.61, subdivision 3, paragraph (g), clause (1), does not include consideration
paid for a stadium builder's license authorized under section 473J.15, subdivision 14.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2014, section 297A.68, subdivision 9, is amended to read:


Subd. 9.

Super Bowl admissionsnew text begin and related eventsnew text end .

new text begin (a) new text end The granting of the
privilege of admission to a world championship football game sponsored by the National
Football League deleted text begin isdeleted text end new text begin and to related events sponsored by the National Football League or its
affiliates, or the Minnesota Super Bowl Host Committee, arenew text end exempt.

new text begin (b) The sale of nonresidential parking by the National Football League for
attendance at a world championship football game sponsored by the National Football
League and for related events sponsored by the National Football League or its affiliates,
or the Minnesota Super Bowl Host Committee, is exempt.
 new text end

new text begin (c) For the purposes of this subdivision:
 new text end

new text begin (1) "related events sponsored by the National Football League or its affiliates"
includes but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate,
NFL On Location, and NFL House; and
 new text end

new text begin (2) "affiliates" does not include National Football League teams.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin The amendments to this section are effective for sales and
purchases made after June 30, 2016, and before March 1, 2018.
 new text end

Sec. 10.

Minnesota Statutes 2014, section 297A.70, subdivision 14, is amended to read:


Subd. 14.

Fund-raising events sponsored by nonprofit groups.

(a) Sales of
tangible personal property or services at, and admission charges for fund-raising events
sponsored by, a nonprofit organization are exempt if:

(1) all gross receipts are recorded as such, in accordance with generally accepted
accounting practices, on the books of the nonprofit organization; and

(2) the entire proceeds, less the necessary expenses for the event, will be used solely
and exclusively for charitable, religious, or educational purposes. Exempt sales include
the sale of prepared food, candy, and soft drinks at the fund-raising event.

(b) This exemption is limited in the following manner:

(1) it does not apply to admission charges for events involving bingo or other
gambling activities or to charges for use of amusement devices involving bingo or other
gambling activities;

(2) all gross receipts are taxable if the profits are not used solely and exclusively for
charitable, religious, or educational purposes;

(3) it does not apply unless the organization keeps a separate accounting record,
including receipts and disbursements from each fund-raising event that documents all
deductions from gross receipts with receipts and other records;

(4) it does not apply to any sale made by or in the name of a nonprofit corporation as
the active or passive agent of a person that is not a nonprofit corporation;

(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;

(6) it does not apply to fund-raising events conducted on premises leased for more
than deleted text begin fivedeleted text end new text begin tennew text end days but less than 30 days; and

(7) it does not apply if the risk of the event is not borne by the nonprofit organization
and the benefit to the nonprofit organization is less than the total amount of the state and
local tax revenues forgone by this exemption.

(c) For purposes of this subdivision, a "nonprofit organization" means any unit of
government, corporation, society, association, foundation, or institution organized and
operated for charitable, religious, educational, civic, fraternal, and senior citizens' or
veterans' purposes, no part of the net earnings of which inures to the benefit of a private
individual.

(d) For purposes of this subdivision, "fund-raising events" means activities of
limited duration, not regularly carried out in the normal course of business, that attract
patrons for community, social, and entertainment purposes, such as auctions, bake sales,
ice cream socials, block parties, carnivals, competitions, concerts, concession stands,
craft sales, bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion
shows, festivals, galas, special event workshops, sporting activities such as marathons and
tournaments, and similar events. Fund-raising events do not include the operation of a
regular place of business in which services are provided or sales are made during regular
hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet sales,
regularly scheduled classes, or other activities carried out in the normal course of business.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 11.

Minnesota Statutes 2014, section 297A.71, is amended by adding a
subdivision to read:


new text begin Subd. 49. new text end

new text begin Siding production facility materials. new text end

new text begin Building materials and supplies
for constructing a siding production facility that can produce at least 400,000,000 square
feet of siding per year are exempt. The tax must be imposed and collected as if the rate
under section 297A.62, subdivision 1, applied, and then refunded in the manner provided
in section 297A.75.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 12.

Minnesota Statutes 2014, section 297A.71, is amended by adding a
subdivision to read:


new text begin Subd. 50. new text end

new text begin Properties destroyed by fire. new text end

new text begin Building materials and supplies used in,
and equipment incorporated into, the construction or replacement of real property that is
located in Madelia affected by the fire on February 3, 2016, are exempt. The tax must be
imposed and collected as if the rate under section 297A.62, subdivision 1, applied and
then refunded in the manner provided in section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016, and before July 1, 2018.
 new text end

Sec. 13.

Minnesota Statutes 2014, section 297A.71, is amended by adding a
subdivision to read:


new text begin Subd. 51. new text end

new text begin Former Duluth Central High School. new text end

new text begin Materials and supplies used
in and equipment incorporated into a private redevelopment project on the site of the
former Duluth Central High School are exempt, provided the resulting development is
subject to property taxes. The tax must be imposed and collected as if the rate under
section 297A.62, subdivision 1, applied and then refunded in the manner provided in
section 297A.75. The commissioner must not pay more than $5,000,000 in refunds for
purchases exempt under this section. Refunds must be processed and issued in the order
that complete and accurate applications are received by the commissioner.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016, and before January 1, 2018.
 new text end

Sec. 14.

Minnesota Statutes 2014, section 297A.75, subdivision 1, is amended to read:


Subdivision 1.

Tax collected.

The tax on the gross receipts from the sale of the
following exempt items must be imposed and collected as if the sale were taxable and the
rate under section 297A.62, subdivision 1, applied. The exempt items include:

(1) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;

(2) building materials for mineral production facilities exempt under section
297A.71, subdivision 14;

(3) building materials for correctional facilities under section 297A.71, subdivision 3;

(4) building materials used in a residence for disabled veterans exempt under section
297A.71, subdivision 11;

(5) elevators and building materials exempt under section 297A.71, subdivision 12;

(6) materials and supplies for qualified low-income housing under section 297A.71,
subdivision 23;

(7) materials, supplies, and equipment for municipal electric utility facilities under
section 297A.71, subdivision 35;

(8) equipment and materials used for the generation, transmission, and distribution
of electrical energy and an aerial camera package exempt under section 297A.68,
subdivision 37;

(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3,
paragraph (a), clause (10);

(10) materials, supplies, and equipment for construction or improvement of projects
and facilities under section 297A.71, subdivision 40;

(11) materials, supplies, and equipment for construction, improvement, or expansion
of:

(i) an aerospace defense manufacturing facility exempt under section 297A.71,
subdivision 42;

(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71,
subdivision 45;

(iii) a research and development facility exempt under section 297A.71, subdivision
46; and

(iv) an industrial measurement manufacturing and controls facility exempt under
section 297A.71, subdivision 47;

(12) enterprise information technology equipment and computer software for use in
a qualified data center exempt under section 297A.68, subdivision 42;

(13) materials, supplies, and equipment for qualifying capital projects under section
297A.71, subdivision 44;

(14) items purchased for use in providing critical access dental services exempt
under section 297A.70, subdivision 7, paragraph (c); deleted text begin and
deleted text end

(15) items and services purchased under a business subsidy agreement for use or
consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 44new text begin ;
new text end

new text begin (16) building materials and supplies for constructing a siding facility exempt under
section 297A.71, subdivision 49;
 new text end

new text begin (17) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivision 50; and
 new text end

new text begin (18) materials and supplies used in and equipment incorporated into a private
redevelopment project exempt under section 297A.71, subdivision 51new text end .

new text begin EFFECTIVE DATE. new text end

new text begin Clause (16) is effective for sales and purchases made after
June 30, 2016. Clause (17) is effective for sales and purchases made after June 30, 2016,
and before July 1, 2018. Clause (18) is effective for sales and purchases made after June
30, 2016, and before January 1, 2018.
 new text end

Sec. 15.

Minnesota Statutes 2014, section 297A.75, subdivision 2, is amended to read:


Subd. 2.

Refund; eligible persons.

Upon application on forms prescribed by the
commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
must be paid to the applicant. Only the following persons may apply for the refund:

(1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;

(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;

(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
provided in United States Code, title 38, chapter 21;

(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
property;

(5) for subdivision 1, clause (6), the owner of the qualified low-income housing
project;

(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or
a joint venture of municipal electric utilities;

(7) for subdivision 1, clauses (8), (11), (12), deleted text begin anddeleted text end (15), new text begin and (16), new text end the owner of the
qualifying business; deleted text begin and
deleted text end

(8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the
governmental entity that owns or contracts for the project or facilitynew text begin ; and
new text end

new text begin (9) for subdivision 1, clauses (17) and (18), the applicant must be the owner or
developer of the building or projectnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin The change to clause (7) is effective for sales and purchases
made after June 30, 2016. Clause (9) is effective for sales and purchases made after June
30, 2016, and before July 1, 2018, as it pertains to Minnesota Statutes, section 297A.71,
subdivision 1, clause (17), and for sales and purchases made after June 30, 2016, and
before January 1, 2018, as it pertains to Minnesota Statutes, section 297A.71, subdivision
1, clause (18).
 new text end

Sec. 16.

Minnesota Statutes 2014, section 297A.75, subdivision 3, is amended to read:


Subd. 3.

Application.

(a) The application must include sufficient information
to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
subcontractor, or builder, under subdivision 1, clauses (3) to (13), or (15)deleted text begin ,deleted text end new text begin to (18), new text end the
contractor, subcontractor, or builder must furnish to the refund applicant a statement
including the cost of the exempt items and the taxes paid on the items unless otherwise
specifically provided by this subdivision. The provisions of sections 289A.40 and
289A.50 apply to refunds under this section.

(b) An applicant may not file more than two applications per calendar year for
refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 17.

Minnesota Statutes 2014, section 297A.815, subdivision 3, is amended to read:


Subd. 3.

Motor vehicle lease sales tax revenue.

(a) For purposes of this subdivision,
"net revenue" means an amount equal to the revenues, including interest and penalties,
collected under this section, during the fiscal year; less $32,000,000 in each fiscal year.

(b) On or before June 30 of each fiscal year, the commissioner of revenue shall
estimate the amount of the net revenue for the current fiscal year.

(c) On or after July 1 of the subsequent fiscal year, the commissioner of management
and budget shall transfer the net revenue as estimated in paragraph (b) from the general
fund, as follows:

(1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter to
the county state-aid highway fund. Notwithstanding any other law to the contrary, the
commissioner of transportation shall allocate the funds transferred under this clause to the
counties in the metropolitan area, as defined in section 473.121, subdivision 4, excluding
the counties of Hennepin and Ramsey, so that each county shall receive of such amount
the percentage that its population, as defined in section 477A.011, subdivision 3, estimated
or established by July 15 of the year prior to the current calendar year, bears to the total
population of the counties receiving funds under this clause; and

(2) the remainder to the greater Minnesota transit account.

new text begin (d) The revenues deposited under this subdivision do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section
297A.62, subdivision 1a, which must be deposited as provided under the Minnesota
Constitution, article XI, section 15.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991,
chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws
2003, First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154,
article 5, section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read:


Subd. 2.

(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other
law, ordinance, or city charter provision to the contrary, the city of Duluth may, by
ordinance, impose an additional sales tax of up to one and three-quarter percent on sales
transactions which are described in Minnesota Statutes 2000, section 297A.01, subdivision
3, clause (c). The imposition of this tax shall not be subject to voter referendum under
either state law or city charter provisions. When the city council determines that the taxes
imposed under this paragraph at a rate of three-quarters of one percent and other sources
of revenue produce revenue sufficient to pay debt service on bonds in the principal amount
of $40,285,000 plus issuance and discount costs, issued for capital improvements at the
Duluth Entertainment and Convention Center, which include a new arena, the rate of tax
under this subdivision must be reduced by three-quarters of one percent.

(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter provision to the contrary,
the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half of
one percent on sales transactions which are described in Minnesota Statutes 2000, section
297A.01, subdivision 3, clause (c). This tax expires when the city council determines
that the tax imposed under this paragraph, along with the tax imposed under section
22, paragraph (b), has produced revenues sufficient to pay the debt service on bonds
in a principal amount of no more than $18,000,000, plus issuance and discount costs,
to finance capital improvements to public facilities to support tourism and recreational
activities in that portion of the city west of deleted text begin 34thdeleted text end new text begin 14thnew text end Avenue West new text begin and the area south of
and including Skyline Parkwaynew text end .

(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation
bonds under Minnesota Statutes, chapter 475, plus an additional amount to pay for the
costs of issuance and any premiums. The proceeds may be used to finance capital
improvements to public facilities that support tourism and recreational activities in the
portion of the city west of deleted text begin 34thdeleted text end new text begin 14thnew text end Avenue West new text begin and the area south of and including
Skyline Parkwaynew text end , as described in paragraph (b). The issuance of the bonds is subject to the
provisions of Minnesota Statutes, chapter 475, except no election shall be required unless
required by the city charter. The bonds shall not be included in computing net debt. The
revenues from the taxes that the city of Duluth may impose under paragraph (b) and under
section 22, paragraph (b), may be pledged to pay principal of and interest on such bonds.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
 new text end

Sec. 19.

Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389,
article 8, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and
Laws 2014, chapter 308, article 3, section 22, is amended to read:


Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND
MOTELS.

(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or
ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
impose an additional tax of one percent upon the gross receipts from the sale of lodging
for periods of less than 30 days in hotels and motels located in the city. The tax shall be
collected in the same manner as the tax set forth in the Duluth city charter, section 54(d),
paragraph one. The imposition of this tax shall not be subject to voter referendum under
either state law or city charter provisions.

(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter provision to the contrary,
the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half
of one percent on the gross receipts from the sale of lodging for periods of less than
30 days in hotels and motels located in the city. This tax expires when the city council
first determines that the tax imposed under this paragraph, along with the tax imposed
under section 21, paragraph (b), has produced revenues sufficient to pay the debt
service on bonds in a principal amount of no more than $18,000,000, plus issuance and
discount costs, to finance capital improvements to public facilities to support tourism and
recreational activities in that portion of the city west of deleted text begin 34thdeleted text end new text begin 14thnew text end Avenue West new text begin and the
area south of and including Skyline Parkwaynew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
 new text end

Sec. 20.

Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by
Laws 1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9,
and Laws 2009, chapter 88, article 4, section 14, is amended to read:


Subd. 3.

Use of revenues.

new text begin (a) new text end Revenues received from taxes authorized by
subdivisions 1 and 2 shall be used by the city to pay the cost of collecting the tax and to
pay all or a portion of the expenses of constructing and improving facilities as part of an
urban revitalization project in downtown Mankato known as Riverfront 2000. Authorized
expenses include, but are not limited to, acquiring property and paying relocation expenses
related to the development of Riverfront 2000 and related facilities, and securing or paying
debt service on bonds or other obligations issued to finance the construction of Riverfront
2000 and related facilities. For purposes of this section, "Riverfront 2000 and related
facilities" means a civic-convention center, an arena, a riverfront park, a technology center
and related educational facilities, and all publicly owned real or personal property that
the governing body of the city determines will be necessary to facilitate the use of these
facilities, including but not limited to parking, skyways, pedestrian bridges, lighting, and
landscaping. It also includes the performing arts theatre and the Southern Minnesota
Women's Hockey Exposition Center, for use by Minnesota State University, Mankato.

new text begin (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and subject
to voter approval at a general election held before December 31, 2018; provided that the
sales tax in the city of North Mankato is also extended at the same general election, the
city may by ordinance also use revenues from taxes authorized under subdivisions 1 and
2, up to a maximum of $47,000,000, plus associated bond costs, to pay all or a portion of
the expenses of the following capital projects:
 new text end

new text begin (1) construction and improvements to regional recreational facilities including
existing hockey and curling rinks, a baseball park, youth athletic fields and facilities, the
municipal swimming pool including improvements to make the pool compliant with the
Americans with Disabilities Act, and indoor regional athletic facilities;
new text end

new text begin (2) improvements to flood control and the levee system;
 new text end

new text begin (3) water quality improvement projects in Blue Earth and Nicollet Counties;
new text end

new text begin (4) expansion of the regional transit building and related multimodal transit
improvements;
 new text end

new text begin (5) regional public safety and emergency communications improvements and
equipment; and
 new text end

new text begin (6) matching funds for improvements to publicly owned regional facilities including
a historic museum, supportive housing, and a senior center.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
the city of Mankato and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
 new text end

Sec. 21.

Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by
Laws 2005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter
366, article 7, section 10, is amended to read:


Subd. 4.

Expiration of taxing authority and expenditure limitation.

The
authority granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax
shall expire deleted text begin ondeleted text end new text begin at the earlier of when revenues are sufficient to pay off the bonds, including
interest and all other associated bond costs authorized under subdivision 5, or new text end December 31,
2022new text begin , unless the additional uses under subdivision 3, paragraph (b) or (c), are authorized.
If the additional use allowed in subdivision 3, paragraph (b), is authorized, the taxes expire
at the earlier of when revenues are sufficient to pay off the bonds, including interest and
all other associated bond costs authorized under subdivision 5, or December 31, 2038new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
 new text end

Sec. 22.

Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:


Subd. 5.

Bonds.

new text begin (a) new text end The city of Mankato may issue general obligation bonds of the
city in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities,
without election under Minnesota Statutes, chapter 475, on the question of issuance of the
bonds or a tax to pay them. The debt represented by bonds issued for Riverfront 2000
and related facilities shall not be included in computing any debt limitations applicable
to the city of Mankato, and the levy of taxes required by section 475.61 to pay principal
of and interest on the bonds shall not be subject to any levy limitation or be included in
computing or applying any levy limitation applicable to the city.

new text begin (b) The city of Mankato, subject to voter approval at the election required under
subdivision 3, paragraph (b), may issue general obligation bonds of the city in an amount
not to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b),
without election under Minnesota Statutes, chapter 475, on the question of issuance of the
bonds or a tax to pay them. The debt represented by bonds under this paragraph shall not be
included in computing any debt limitations applicable to the city of Mankato, and the levy
of taxes required by Minnesota Statutes, section 475.61, to pay principal of and interest on
the bonds, and shall not be subject to any levy limitation or be included in computing or
applying any levy limitation applicable to the city. The city may use tax revenue in excess
of one year's principal interest reserve for intended annual bond payments to pay all or a
portion of the cost of capital improvements authorized in subdivision 3.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
 new text end

Sec. 23.

Laws 1991, chapter 291, article 8, section 27, subdivision 6, is amended to read:


Subd. 6.

Reverse referendumnew text begin ; authorization of extensionnew text end .

new text begin (a) new text end If the Mankato city
council intends to exercise the authority provided by this section, it shall pass a resolution
stating the fact before July 1, 1991. The resolution must be published for two successive
weeks in the official newspaper of the city or, if there is no official newspaper, in a
newspaper of general circulation in the city, together with a notice fixing a date for a public
hearing on the matter. The hearing must be held at least two weeks but not more than four
weeks after the first publication of the resolution. Following the public hearing, the city
may determine to take no further action or adopt a resolution confirming its intention to
exercise the authority. That resolution must also be published in the official newspaper of
the city or, if there is no official newspaper, in a newspaper of general circulation in the
city. If within 30 days after publication of the resolution a petition signed by voters equal
in number to ten percent of the votes cast in the city in the last general election requesting
a vote on the proposed resolution is filed with the county auditor, the resolution is not
effective until it has been submitted to the voters at a general or special election and a
majority of votes cast on the question of approving the resolution are in the affirmative. The
commissioner of revenue shall prepare a suggested form of question to be presented at the
election. The referendum must be held at a special or general election before December 1,
1991. This subdivision applies notwithstanding any city charter provision to the contrary.

new text begin (b) If the Mankato city council wishes to extend the taxes authorized under
subdivisions 1 and 2 to fund any of the projects listed in subdivision 3, paragraph (b), the
city must pass a resolution extending the taxes before July 1, 2016. The tax may not be
imposed unless approved by the voters.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
 new text end

Sec. 24.

Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by
Laws 2006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter
7, article 4, section 4, is amended to read:


Subdivision 1.

Sales tax authorized.

(a) Notwithstanding Minnesota Statutes,
section 477A.016, or any other contrary provision of law, ordinance, or city charter, the
city of Hermantown may, by ordinance, impose an additional sales tax of up to one percent
on sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur
within the city. The proceeds of the tax imposed under this section must be used to new text begin pay
the cost of collection of the tax and to new text end meet the costsnew text begin , including principal, interest, and
premiums of bonds used in the finance new text end of:

(1) extending a sewer interceptor line;

(2) construction of a booster pump station, reservoirs, and related improvements
to the water system; deleted text begin and
deleted text end

(3) construction of a building containing a police and fire station and an
administrative services facilitynew text begin ; and
new text end

new text begin (4) construction and equipping of a regional, multiuse wellness centernew text end .

(b) If the city imposed a sales tax of only one-half of one percent under paragraph
(a), it may increase the tax to one percent to fund the purposes under paragraph (a)
provided it is approved by the voters at a general election held before December 31, 2012.

new text begin (c) The tax imposed in paragraph (a) may only be used to fund projects listed in
paragraph (a), clause (4), if approved by the local voters at the November 8, 2016, general
election. Revenue raised from the tax imposed under this subdivision in every year must
first be used to meet obligations in that year related to the projects in paragraph (a), clauses
(1) to (3), with excess revenues available to fund the projects in paragraph (a), clause (4).
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
the city of Hermantown and its chief clerical officer comply with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
 new text end

Sec. 25.

Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by
Laws 2006, chapter 259, article 3, section 4, is amended to read:


Subd. 4.

Termination.

The tax authorized under this section terminates on March
31, 2026new text begin , unless the additional use under subdivision 1, paragraph (a), is approved
as required under subdivision 1, paragraph (c). If the additional project is approved
as required under subdivision 1, paragraph (c), the tax authorized under this section
terminates at the earlier of (1) December 31, 2036, or (2) when the Hermantown City
Council first determines that sufficient funds have been received from the tax to fund the
costs, including bonds and associated bond costs for the uses specified in subdivision 1,
paragraph (a)new text end . Any funds remaining after completion of the improvements and retirement
or redemption of the bonds may be placed in the general fund of the city.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.
 new text end

Sec. 26.

Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by
Laws 2008, chapter 366, article 7, section 12, is amended to read:


Subdivision 1.

Sales and use tax.

new text begin (a) new text end Notwithstanding Minnesota Statutes, section
477A.016, or any other provision of law, ordinance, or city charter, if approved by the city
voters at the first municipal general election held after the date of final enactment of this act
or at a special election held November 2, 1999, the city of Proctor may impose by ordinance
a sales and use tax of up to one-half of one percent for the purposes specified in subdivision
3. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.

new text begin (b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of
law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional
sales and use tax of up to one-half of one percent as approved by the voters at the
November 4, 2014, general election. The revenues received from the additional tax must
be used for the purposes specified in subdivision 3, paragraph (b).
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
the city of Proctor and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3, but only if the local approval requirement under section
10 is also met.
 new text end

Sec. 27.

Laws 2008, chapter 366, article 7, section 20, is amended to read:


Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED.

Subdivision 1.

Sales and use tax authorized.

Notwithstanding Minnesota Statutes,
section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to
the approval of the voters on November 7, 2006, the city of North Mankato may impose
by ordinance a sales and use tax of one-half of one percent for the purposes specified
in subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the
imposition, administration, collection, and enforcement of the taxes authorized under
this subdivision.

Subd. 2.

Use of revenues.

new text begin (a) new text end Revenues received from the tax authorized by
subdivision 1 must be used to pay all or part of the capital costs of the following projects:

(1) the local share of the Trunk Highway 14/County State-Aid Highway 41
interchange project;

(2) development of regional parks and hiking and biking trailsnew text begin , including
construction of indoor regional athletic facilitiesnew text end ;

(3) expansion of the North Mankato Taylor Library;

(4) riverfront redevelopment; and

(5) lake improvement projects.

The total amount of revenues from the tax in subdivision 1 that may be used to fund
these projects is $6,000,000 plus any associated bond costs.

new text begin (b) If the city extends the tax as authorized under subdivision 2a, the total amount that
may be used to fund these projects is increased by $9,000,000, plus associated bond costs.
 new text end

new text begin Subd. 2a. new text end

new text begin Authorization to extend the tax. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 3, the North Mankato city council may, by resolution, extend
the tax authorized under subdivision 1 to cover an additional $9,000,000 in bonds, plus
associated bond costs, to fund the projects in subdivision 2, paragraph (a), if approved by
the voters at a general election held before December 31, 2018; provided that the sales tax
in the city of Mankato is also extended at the same general election.
 new text end

Subd. 3.

Bonds.

(a) The city of North Mankato, pursuant to the approval of the
voters at the November 7, 2006 referendum authorizing the imposition of the taxes in
this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital and
administrative expenses for the projects described in subdivision 2,new text begin paragraph (a),new text end in an
amount that does not exceed $6,000,000. A separate election to approve the bonds under
Minnesota Statutes, section 475.58, is not required.

new text begin (b) The city of North Mankato, subject to the referendum in subdivision 2a, allowing
for additional revenue to be spent for the projects in subdivision 2, may issue additional
bonds under Minnesota Statutes, chapter 475, to pay capital and administrative expenses
for those projects in an amount that does not exceed $9,000,000. A separate election to
approve the bonds under Minnesota Statutes, section 475.58, is not required.
 new text end

deleted text begin (b)deleted text end new text begin (c)new text end The debt represented by the bonds is not included in computing any debt
limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section
475.61, to pay principal and interest on the bonds is not subject to any levy limitation.

Subd. 4.

Termination of taxes.

The tax imposed under subdivision 1 expires when
the city council determines that the amount of revenues received from the taxes to pay for
the projects under subdivision 2new text begin , paragraph (a),new text end first equals or exceeds $6,000,000 plus the
additional amount needed to pay the costs related to issuance of bonds under subdivision
3, including interest on the bondsnew text begin , unless the tax is extended as allowed in this section. If
the tax is extended as allowed under the referendum under subdivision 2a, the tax expires
at the earlier of December 31, 2038, or when revenues from the taxes first equal or exceed
$15,000,000 plus the additional amount needed to pay costs related to issuance of bonds
under subdivision 3, including interestnew text end . Any funds remaining after completion of the
projects and retirement or redemption of the bonds shall be placed in a capital facilities
and equipment replacement fund of the city. The tax imposed under subdivision 1 may
expire at an earlier time if the city so determines by ordinance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
the city of North Mankato and its chief clerical officer comply with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
 new text end

Sec. 28. new text begin CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota
Statutes, section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance,
or city charter, and as approved by the voters at a special election on March 7, 2016, the
city of East Grand Forks may impose, by ordinance, a sales and use tax of up to one
percent for the purposes specified in subdivision 2. Except as otherwise provided in this
section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
 new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax
authorized under subdivision 1 must be used by the city of East Grand Forks to pay the
costs of collecting and administering the tax and to finance the capital and administrative
costs of improvement to the city public swimming pool. Authorized expenses include,
but are not limited to, paying construction expenses related to the renovation and the
development of these facilities and improvements, and securing and paying debt service
on bonds issued under subdivision 3 or other obligations issued to finance improvement of
the public swimming pool in the city of East Grand Forks
 new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of East Grand Forks may issue bonds
under Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the
facilities authorized in subdivision 2. The aggregate principal amount of bonds issued
under this subdivision may not exceed $2,820,000, plus an amount to be applied to the
payment of the costs of issuing the bonds. The bonds may be paid from or secured by
any funds available to the city of East Grand Forks, including the tax authorized under
subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota
Statutes, sections 275.60 and 275.61.
 new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the
city of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61,
to pay principal and interest on the bonds is not subject to any levy limitation. A separate
election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
 new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 1 expires at
the later of: (1) five years after the tax is first imposed; or (2) when the city council
determines that $2,820,000 has been received from the tax to pay for the cost of the
projects authorized under subdivision 2, plus an amount sufficient to pay the costs related
to issuance of the bonds authorized under subdivision 3, including interest on the bonds.
Any funds remaining after payment of all such costs and retirement or redemption of the
bonds shall be placed in the general fund of the city. The tax imposed under subdivision 1
may expire at an earlier time if the city so determines by ordinance.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after compliance by the
governing body of the city of East Grand Forks with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
 new text end

Sec. 29. new text begin CITY OF MARSHALL; VALIDATION OF PRIOR ACT.
new text end

new text begin (a) Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city
of Marshall may approve Laws 2011, First Special Session chapter 7, article 4, section
14, and file its approval with the secretary of state by June 15, 2013. If approved as
authorized under this paragraph, actions undertaken by the city as approved by the voters
on November 6, 2012, and otherwise in accordance with Laws 2011, First Special Session
chapter 7, article 4, section 14, are validated.
 new text end

new text begin (b) Notwithstanding the time limit on the imposition of tax under Laws 2011, First
Special Session chapter 7, article 4, section 14, and subject to local approval under
paragraph (a), the city of Marshall may impose the tax on or before July 1, 2013.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 30. new text begin CERTAIN REIMBURSEMENT AUTHORIZED; CONSIDERED
OPERATING OR CAPITAL EXPENSES.
new text end

new text begin Subdivision 1. new text end

new text begin Reimbursement authorized. new text end

new text begin (a) An amount equivalent to the taxes
paid under Minnesota Statutes, chapter 297A, and any local taxes administered by the
Department of Revenue, on purchases of tangible personal property, nonresidential
parking services, and lodging, as these terms are defined in Minnesota Statutes, chapter
297A, used and consumed in connection with Super Bowl LII or related events sponsored
by the National Football League or its affiliates, will be reimbursed by the Minnesota
Sports Facilities Authority up to $1,600,000, if made after June 30, 2016, and before
March 1, 2018. Only purchases made by the Minnesota Super Bowl Host Committee, the
National Football League or its affiliates, or their employees or independent contractors,
qualify to be reimbursed under this section.
 new text end

new text begin (b) For purposes of this subdivision:
 new text end

new text begin (1) "employee or independent contractor" means only those employees or
independent contractors that make qualifying purchases that are reimbursed by the
Minnesota Super Bowl Host Committee or the National Football League or its affiliates; and
 new text end

new text begin (2) "related events sponsored by the National Football League or its affiliates"
includes but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate,
NFL Honors, and NFL House.
 new text end

new text begin Subd. 2. new text end

new text begin Operating reserve and capital reserve fund. new text end

new text begin Notwithstanding the
requirements of Minnesota Statutes, section 473J.13, subdivisions 2 and 4, up to
$1,600,000 of the balance in the operating reserve or capital reserve fund may be used for
the purposes of paying reimbursements authorized under subdivision 1.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016, and before March 1, 2018.
 new text end

Sec. 31. new text begin SEVERABILITY.
new text end

new text begin If any provision of sections 2 to 5 or the application thereof is held invalid, such
invalidity shall not affect the provisions or applications of the sections that can be given
effect without the invalid provisions or applications.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 32. new text begin EFFECTIVE DATE.
new text end

new text begin (a) The provisions of sections 2 to 5 are effective at the earlier of:
 new text end

new text begin (1) a decision by the United States Supreme Court modifying its decision in Quill
Corp. v. North Dakota, 504 U.S. 298 (1992) so that a state may require retailers without a
physical presence in the state to collect and remit sales tax; or
 new text end

new text begin (2) July 1, 2019.
 new text end

new text begin (b) Notwithstanding paragraph (a) or the provisions of sections 2 to 5, if a federal
law is enacted authorizing a state to impose a requirement to collect and remit sales tax
on retailers without a physical presence in the state, the commissioner must enforce the
provisions of this section and sections 2 to 5 to the extent allowed under federal law.
 new text end

new text begin (c) The commissioner of revenue shall notify the revisor of statutes when either of
the provisions in paragraph (a) or (b) apply.
 new text end

ARTICLE 5

SPECIAL TAXES

Section 1.

Minnesota Statutes 2014, section 296A.01, subdivision 12, is amended to
read:


Subd. 12.

Compressed natural gas or CNG.

"Compressed natural gas" or "CNG"
means natural gas, primarily methane, condensed under high pressure and stored in
specially designed storage tanks at between 2,000 and 3,600 pounds per square inch.
For purposes of this chapter, the energy content of CNG is considered to be deleted text begin 1,000deleted text end new text begin 900
new text end BTUs per cubic foot.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 2.

Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision
to read:


new text begin Subd. 13a. new text end

new text begin Dealer of gasoline used as a substitute for aviation gasoline. new text end

new text begin "Dealer
of gasoline used as a substitute for aviation gasoline" means any person who sells gasoline
on the premises of an airport as defined under section 360.013, subdivision 39, to be
dispensed directly into the fuel tank of an aircraft.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 3.

Minnesota Statutes 2014, section 296A.07, subdivision 4, is amended to read:


Subd. 4.

Exemptions.

The provisions of subdivision 1 do not apply to gasoline or
denatured ethanol purchased by:

(1) a transit system or transit provider receiving financial assistance or
reimbursement under section 174.24, 256B.0625, subdivision 17, or 473.384;

(2) providers of transportation to recipients of medical assistance home and
community-based services waivers enrolled in day programs, including adult day care,
family adult day care, day treatment and habilitation, prevocational services, and
structured day services;

(3) an ambulance service licensed under chapter 144E;

(4) providers of medical or dental services by a federally qualified health center,
as defined under title 19 of the Social Security Act, as amended by Section 4161 of the
Omnibus Budget Reconciliation Act of 1990, with a motor vehicle used exclusively as a
mobile medical unit; deleted text begin or
deleted text end

(5) a licensed distributor to be delivered to a terminal for use in blendingnew text begin ; or
new text end

new text begin (6) a dealer of gasoline used as a substitute for aviation gasolinenew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 4.

Minnesota Statutes 2014, section 296A.08, subdivision 2, is amended to read:


Subd. 2.

Rate of tax.

The special fuel excise tax is imposed at the following rates:

(a) Liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon.

(b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.

(c) Compressed natural gas is taxed at the rate of deleted text begin $2.174deleted text end new text begin $1.974new text end per thousand cubic
feet; or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline
equivalent," as defined by the National Conference on Weights and Measures, is 5.66
pounds of natural gasnew text begin or 126.67 cubic feetnew text end .

(d) All other special fuel is taxed at the same rate as the gasoline excise tax as
specified in section 296A.07, subdivision 2. The tax is payable in the form and manner
prescribed by the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 5.

Minnesota Statutes 2014, section 296A.09, subdivision 1, is amended to read:


Subdivision 1.

Gasoline tax imposed.

Subject to any refunds or credits there is
imposed an excise tax, at the rate of five cents per gallon on all aviation gasoline received,
sold, stored, or withdrawn from storage in this statenew text begin and on all gasoline used as a substitute
for aviation gasolinenew text end . Aviation gasoline is defined in section 296A.01, subdivision 7.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 6.

Minnesota Statutes 2014, section 296A.09, subdivision 3, is amended to read:


Subd. 3.

Exception to tax for aviation use.

The provisions of subdivisions 1 and 2
do not apply to new text begin gasoline used as a substitute for aviation gasoline, new text end aviation gasolinenew text begin ,new text end or
special fuel purchased and placed in the fuel tanks of an aircraft outside the state, even
though the gasoline may be consumed within this state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 7.

Minnesota Statutes 2014, section 296A.09, subdivision 5, is amended to read:


Subd. 5.

Tax not on consumption.

The taxes imposed by subdivisions 1 and 2 are
expressly declared not to be a tax upon consumption of new text begin gasoline used as a substitute for
aviation gasoline, new text end aviation gasolinenew text begin ,new text end or special fuel by an aircraft.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 8.

Minnesota Statutes 2014, section 296A.09, subdivision 6, is amended to read:


Subd. 6.

Exemptions.

The provisions of subdivisions 1 and 2 do not apply to
new text begin gasoline used as a substitute for aviation gasoline, new text end aviation gasolinenew text begin ,new text end or jet fuel purchased
by an ambulance service licensed under chapter 144E.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 9.

Minnesota Statutes 2014, section 296A.15, subdivision 1, is amended to read:


Subdivision 1.

Monthly gasoline report; shrinkage allowance.

(a) Except
as provided in paragraph (e), on or before the 23rd day of each month, every person
who is required to pay a gasoline tax shall file with the commissioner a report, in the
form and manner prescribed by the commissioner, showing the number of gallons of
petroleum products received by the reporter during the preceding calendar month, and
other information the commissioner may require. A written report is deemed to have
been filed as required in this subdivision if postmarked on or before the 23rd day of the
month in which the tax is payable.

(b) The number of gallons of gasoline must be reported in United States standard
liquid gallons, 231 cubic inches, except that the commissioner may upon written
application and for cause shown permit the distributor to report the number of gallons of
gasoline as corrected to a temperature of 60-degrees Fahrenheit. If the application is
granted, all gasoline covered in the application and allowed by the commissioner must
continue to be reported by the distributor on the adjusted basis for a period of one year
from the date of the granting of the application. The number of gallons of petroleum
products other than gasoline must be reported as originally invoiced. Each report must
show separately the number of gallons of aviation gasoline received by the reporter during
each calendar monthnew text begin and the number of gallons of gasoline sold to a dealer of gasoline
used as a substitute for aviation fuel during each calendar monthnew text end .

(c) Each report must also include the amount of gasoline tax on gasoline received by
the reporter during the preceding month. In computing the tax a deduction of 2.5 percent
of the quantity of gasoline received by a distributor shall be made for evaporation and loss.
At the time of reporting, the reporter shall submit satisfactory evidence that one-third of
the 2.5 percent deduction has been credited or paid to dealers on quantities sold to them.

(d) Each report shall contain a confession of judgment for the amount of the tax
shown due to the extent not timely paid.

(e) Under certain circumstances and with the approval of the commissioner,
taxpayers may be allowed to file reports annually.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 10.

Minnesota Statutes 2014, section 296A.15, subdivision 4, is amended to read:


Subd. 4.

Failure to use or sell for intended purpose; report required.

(a) Any
person who buys new text begin gasoline from a dealer of gasoline used as a substitute for aviation
gasoline, or buys new text end aviation gasoline or special fuel for aircraft use and who has paid the
excise taxes due directly or indirectly through the amount of the tax being included in the
price, or otherwise, and uses said gasoline or special fuel in motor vehicles or knowingly
sells it to any person for use in motor vehicles shall, on or before the 23rd day of the month
following that in which such gasoline or special fuel was so used or sold, report the fact of
the use or sale to the commissioner in the form and manner prescribed by the commissioner.

(b) Any person who buys gasoline other than aviation gasoline and who has paid the
motor vehicle gasoline excise tax directly or indirectly through the amount of the tax being
included in the price of the gasoline, or otherwise, who knowingly sells such gasoline to any
person to be used for the purpose of producing or generating power for propelling aircraft,
or who receives, stores, or withdraws from storage gasoline to be used for that purpose,
shall, on or before the 23rd day of the month following that in which such gasoline was so
sold, stored, or withdrawn from storage, report the fact of the sale, storage, or withdrawal
from storage to the commissioner in the form and manner prescribed by the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 11.

Minnesota Statutes 2014, section 296A.17, subdivision 1, is amended to read:


Subdivision 1.

Aviation refund requirements.

Any person claiming to be entitled
to any refund or credit provided for in subdivision 3 shall receive the refund or credit
upon filing with the commissioner a claim in such form and manner prescribed by the
commissioner. The claim shall set forth, among other things, the total number of gallons
of new text begin gasoline used as a substitute for aviation gasoline, new text end aviation gasolinenew text begin ,new text end or special fuel
for aircraft use upon which the claimant has directly or indirectly paid the excise tax
provided for in this chapter, during the calendar year, which has been received, stored, or
withdrawn from storage by the claimant in this state and not sold or otherwise disposed of
to others. All claims for refunds under this subdivision shall be made on or before April
30 following the end of the calendar year for which the refund is claimed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 12.

Minnesota Statutes 2014, section 296A.17, subdivision 2, is amended to read:


Subd. 2.

Claim for refund; aviation tax.

(a) Any person who buys new text begin gasoline used
as a substitute for aviation gasoline, new text end aviation gasolinenew text begin ,new text end or special fuel for aircraft use and
who has paid the excise taxes directly or indirectly through the amount of the tax being
included in the price, or otherwise, who does not use it in motor vehicles or receive, sell,
store, or withdraw it from storage for the purpose of producing or generating power for
propelling aircraft, shall be reimbursed and repaid the amount of the tax paid upon filing
with the commissioner a claim in the form and manner prescribed by the commissioner.
The claim shall state the total amount of the new text begin gasoline used as a substitute for aviation
gasoline, new text end aviation gasolinenew text begin ,new text end or special fuel for aircraft use purchased and used by the
applicant, and shall state when and for what purpose it was used. On being satisfied that
the claimant is entitled to payment, the commissioner shall approve the claim and transmit
it to the commissioner of management and budget. The postmark on the envelope in
which a written claim is mailed determines the date of filing.

(b) If a claim contains an error in preparation in computation or preparation, the
commissioner is authorized to adjust the claim in accordance with the evidence shown on
the claim or other information available to the commissioner.

(c) An applicant who files a claim that is false or fraudulent, is subject to the
penalties provided in section 296A.23 for knowingly and willfully making a false claim.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 13.

Minnesota Statutes 2014, section 296A.17, subdivision 3, is amended to read:


Subd. 3.

Refund on graduated basis.

Any person who has directly or indirectly
paid the excise tax on new text begin gasoline used as a substitute for aviation gasoline, new text end aviation gasolinenew text begin ,new text end
or special fuel for aircraft use provided for by this chapter and new text begin either paid new text end the airflight
property tax under section 270.072 new text begin or is an aerial applicator with a category B, general
aerial license, under section 18B.33, new text end shall, as to all such new text begin gasoline used as a substitute for
aviation gasoline, new text end aviation gasolinenew text begin ,new text end and special fuel received, stored, or withdrawn from
storage by the person in this state in any calendar year and not sold or otherwise disposed
of to others, or intended for sale or other disposition to others, on which such tax has been
so paid, be entitled to the following graduated reductions in such tax for that calendar
year, to be obtained by means of the following refunds:

(1) on each gallon of deleted text begin suchdeleted text end new text begin gasoline used as a substitute for aviation gasoline, new text end aviation
gasolinenew text begin ,new text end or special fuel up to 50,000 gallons, all but five cents per gallon;

(2) on each gallon of deleted text begin suchdeleted text end new text begin gasoline used as a substitute for aviation gasoline, new text end aviation
gasolinenew text begin ,new text end or special fuel above 50,000 gallons and not more than 150,000 gallons, all
but two cents per gallon;

(3) on each gallon of deleted text begin suchdeleted text end new text begin gasoline used as a substitute for aviation gasoline, new text end aviation
gasolinenew text begin ,new text end or special fuel above 150,000 gallons and not more than 200,000 gallons, all
but one cent per gallon;

(4) on each gallon of deleted text begin suchdeleted text end new text begin gasoline used as a substitute for aviation gasoline, new text end aviation
gasolinenew text begin ,new text end or special fuel above 200,000, all but one-half cent per gallon.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 14.

Minnesota Statutes 2014, section 296A.18, subdivision 1, is amended to read:


Subdivision 1.

Intent; gasoline use.

All gasoline received in this state and all
gasoline produced in or brought into this state except aviation gasolinenew text begin , gasoline sold to a
dealer of gasoline used as a substitute for aviation gasoline,new text end and marine gasoline shall be
determined to be intended for use in motor vehicles in this state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 15.

Minnesota Statutes 2014, section 296A.18, subdivision 8, is amended to read:


Subd. 8.

Airports.

The revenues derived from the excise taxes on new text begin gasoline used as
a substitute for aviation gasoline, new text end aviation gasolinenew text begin ,new text end and on special fuel received, sold,
stored, or withdrawn from storage as substitutes for aviation gasoline, shall be paid into
the state treasury and credited to the state airports fund. There is hereby appropriated such
sums as are needed to carry out the provisions of this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 16.

Minnesota Statutes 2014, section 296A.19, subdivision 1, is amended to read:


Subdivision 1.

Retention.

All distributors, dealers, special fuel dealers, bulk
purchasersnew text begin , dealers of gasoline used as a substitute for aviation gasolinenew text end , and all users of
special fuel shall keep a true and accurate record of all purchases, transfers, sales, and use
of petroleum products and special fuel, including copies of all sales tickets issued, in a form
and manner approved by the commissioner, and shall retain all such records for 3-1/2 years.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 17.

Minnesota Statutes 2014, section 297E.02, subdivision 1, is amended to read:


Subdivision 1.

Imposition.

new text begin (a) new text end A tax is imposed on all lawful gambling other than
(1) paper or electronic pull-tab deals or games; (2) tipboard deals or games; (3) electronic
linked bingo; and (4) items listed in section 297E.01, subdivision 8, clauses (4) and (5), at
the rate of 8.5 percent on the gross receipts as defined in section 297E.01, subdivision 8,
less prizes actually paid.

new text begin (b) A tax is imposed on the conduct of paper pull-tabs, at the rate of nine percent of
the gross receipts, less prizes actually paid, of the pull-tab deal. The tax imposed under
this paragraph applies only to paper pull-tabs sold at a bingo hall as defined in section
349.12, subdivision 4a.
 new text end

new text begin (c) new text end The tax imposed by this subdivision is in lieu of the tax imposed by section
297A.62 and all local taxes and license fees except a fee authorized under section 349.16,
subdivision 8, or a tax authorized under subdivision 5.

new text begin (d) new text end The tax imposed under this subdivision is payable by the organization or party
conducting, directly or indirectly, the gambling.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for gross receipts received on or
after July 1, 2016.
 new text end

Sec. 18.

Minnesota Statutes 2015 Supplement, section 297E.02, subdivision 6, is
amended to read:


Subd. 6.

Combined net receipts tax.

(a) In addition to the taxes imposed under
subdivision 1, a tax is imposed on the combined net receipts of the organization. As used
in this section, "combined net receipts" is the sum of the organization's gross receipts
from lawful gambling less gross receipts directly derived from the conduct of paper
bingo, raffles, and paddlewheels, as defined in section 297E.01, subdivision 8, and less
the net prizes actually paid, other than prizes actually paid for paper bingo, raffles, and
paddlewheels, for the fiscal year. The combined net receipts of an organization are subject
to a tax computed according to the following schedule:

If the combined net
receipts for the fiscal year
are:
 The tax is:
Not over $87,500
 nine percent
Over $87,500, but not over
$122,500
 $7,875 plus 18 percent of the amount
over $87,500, but not over $122,500
Over $122,500, but not
over $157,500
 $14,175 plus 27 percent of the amount
over $122,500, but not over $157,500
Over $157,500
 $23,625 plus 36 percent of the
amount over $157,500

(b) On or before April 1, 2016, the commissioner shall estimate the total amount of
revenue, including interest and penalties, that will be collected for fiscal year 2016 from
taxes imposed under this chapter. If the amount estimated by the commissioner equals
or exceeds $94,800,000, the commissioner shall certify that effective July 1, 2016, the
rates under this paragraph apply in lieu of the rates under paragraph (a) and shall publish a
notice to that effect in the State Register and notify each taxpayer by June 1, 2016. If the
rates under this section apply, the combined net receipts of an organization are subject to a
tax computed according to the following schedule:

If the combined net
receipts for the fiscal year
are:
 The tax is:
Not over $87,500
 8.5 percent
Over $87,500, but not over
$122,500
 $7,438 plus 17 percent of the amount
over $87,500, but not over $122,500
Over $122,500, but not
over $157,500
 $13,388 plus 25.5 percent of the
amount over $122,500, but not over
$157,500
Over $157,500
 $22,313 plus 34 percent of the
amount over $157,500

(c) Gross receipts derived from sports-themed tipboards are exempt from taxation
under this section. For purposes of this paragraph, a sports-themed tipboard means a
sports-themed tipboard as defined in section 349.12, subdivision 34, under which the
winning numbers are determined by the numerical outcome of a professional sporting event.

new text begin (d) Paper pull-tabs sold at a bingo hall as defined in section 349.12, subdivision 4a,
are exempt from taxation under this subdivision.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016.
 new text end

Sec. 19.

Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision
to read:


new text begin Subd. 6a. new text end

new text begin Bulk nicotine. new text end

new text begin "Bulk nicotine" means any vapor product that contains a
solution having a concentration of 50 milligrams of nicotine per milliliter or greater.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision
to read:


new text begin Subd. 6b. new text end

new text begin Consumable material. new text end

new text begin "Consumable material" means any vapor product
that contains nicotine in a solution having a concentration of less than 50 milligrams
of nicotine per milliliter.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

Minnesota Statutes 2014, section 297F.01, subdivision 19, is amended to read:


Subd. 19.

Tobacco products.

(a) "Tobacco products" means any product
containing, made, or derived from tobacco that is intended for human consumption,
whether chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by
any other means, or any component, part, or accessory of a tobacco product, including,
but not limited to, cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut,
ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist
tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings, cuttings and
sweepings of tobacco,new text begin vapor products,new text end and other kinds and forms of tobacco; but does
not include cigarettes as defined in this section. Tobacco products excludes any tobacco
product that has been approved by the United States Food and Drug Administration for
sale as a tobacco cessation product, as a tobacco dependence product, or for other medical
purposes, and is being marketed and sold solely for such an approved purpose.

(b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4,
tobacco products includes a premium cigar, as defined in subdivision 13a.

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision
to read:


new text begin Subd. 24. new text end

new text begin Vapor products. new text end

new text begin "Vapor products" means any noncombustible product
that employs a heating element, power source, electronic circuit, or other electronic,
chemical, or mechanical means, regardless of shape or size, that can be used to produce
vapor from nicotine in a solution or other form. Vapor products includes any electronic
cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device
and any vapor cartridge or other container of bulk nicotine or consumable material in
a solution or other form that is intended to be used with or in an electronic cigarette,
electronic cigar, electronic cigarillo, electronic pipe, or similar product or device.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

Minnesota Statutes 2014, section 297F.05, subdivision 1, is amended to read:


Subdivision 1.

Rates; cigarettes.

A tax is imposed upon the sale of cigarettes in this
state, upon having cigarettes in possession in this state with intent to sell, upon any person
engaged in business as a distributor, and upon the use or storage by consumers, at the rate
of deleted text begin 141.5deleted text end new text begin 150new text end mills, or deleted text begin 14.15deleted text end new text begin 15new text end cents, on each cigarette.

new text begin EFFECTIVE DATE. new text end

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

Sec. 24.

Minnesota Statutes 2014, section 297F.05, subdivision 3, is amended to read:


Subd. 3.

Rates; tobacco products.

(a) Except as provided in deleted text begin subdivision
deleted text end new text begin subdivisionsnew text end 3anew text begin and 3bnew text end , a tax is imposed upon all tobacco products in this state and upon
any person engaged in business as a distributor, at the rate of 95 percent of the wholesale
sales price of the tobacco products. The tax is imposed at the time the distributor:

(1) brings, or causes to be brought, into this state from outside the state tobacco
products for sale;

(2) makes, manufactures, or fabricates tobacco products in this state for sale in
this state; or

(3) ships or transports tobacco products to retailers in this state, to be sold by those
retailers.

(b) Notwithstanding paragraph (a), a minimum tax equal to the rate imposed on a
pack of 20 cigarettes weighing not more than three pounds per thousand, as established
under subdivision 1, is imposed on each container of moist snuff.

For purposes of this subdivision, a "container" means the smallest consumer-size can,
package, or other container that is marketed or packaged by the manufacturer, distributor,
or retailer for separate sale to a retail purchaser. When more than one container is
packaged together, each container is subject to tax.

new text begin EFFECTIVE DATE. new text end

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

Sec. 25.

Minnesota Statutes 2014, section 297F.05, is amended by adding a subdivision
to read:


new text begin Subd. 3b. new text end

new text begin Rates; vapor products. new text end

new text begin (a) A tax is imposed upon all vapor products in
this state and upon any person engaged in business as a tobacco product distributor. The
tax imposed under this subdivision is imposed at the time the tobacco products distributor:
 new text end

new text begin (1) brings, or causes to be brought, into this state vapor products for sale;
 new text end

new text begin (2) makes, manufactures, or fabricates vapor products in this state, not otherwise
taxed under this subdivision, for sale in this state; or
 new text end

new text begin (3) ships or transports vapor products to retailers in this state to be sold by those
retailers.
 new text end

new text begin (b) For vapor products that contain bulk nicotine, the rate of tax is 300 percent of the
wholesale sales price of the vapor product.
 new text end

new text begin (c) For vapor products that contain consumable material, the rate of tax is 45 percent
of the wholesale sales price of the vapor product.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 26.

Minnesota Statutes 2014, section 297F.05, is amended by adding a subdivision
to read:


new text begin Subd. 4b. new text end

new text begin Use tax; vapor products. new text end

new text begin A tax is imposed upon the use or storage by
consumers of all vapor products in this state, and upon such consumers, at the rate of 300
percent of the wholesale sales price of a vapor product containing bulk nicotine, and 45
percent of the wholesale sales price of a vapor product containing consumable material.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

Minnesota Statutes 2014, section 297H.04, subdivision 2, is amended to read:


Subd. 2.

Rate.

(a) Commercial generators that generate nonmixed municipal
solid waste shall pay a solid waste management tax of 60 cents per noncompacted
cubic yard of periodic waste collection capacity purchased by the generator, based on
the size of the container for the nonmixed municipal solid waste, the actual volume,
or the weight-to-volume conversion schedule in paragraph (c). However, the tax must
be calculated by the waste management service provider using the same method for
calculating the waste management service fee so that both are calculated according to
container capacity, actual volume, or weight.

(b) Notwithstanding section 297H.02, a residential generator that generates
nonmixed municipal solid waste shall pay a solid waste management tax in the same
manner as provided in paragraph (a).

(c) The weight-to-volume conversion schedule for:

(1) construction debris as defined in section 115A.03, subdivision 7, is deleted text begin one ton
equals 3.33 cubic yards, or $2 per tondeleted text end new text begin equal to 60 cents per cubic yard. The commissioner
of revenue, after consultation with the commissioner of the Pollution Control Agency,
shall determine and may publish by notice a conversion schedule for construction debrisnew text end ;

(2) industrial waste as defined in section 115A.03, subdivision 13a, is equal to
60 cents per cubic yard. The commissioner of revenue after consultation with the
commissioner of the Pollution Control Agency, shall determine, and may publish by
notice, a conversion schedule for various industrial wastes; and

(3) infectious waste as defined in section 116.76, subdivision 12, and pathological
waste as defined in section 116.76, subdivision 14, is 150 pounds equals one cubic yard, or
60 cents per 150 pounds.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
 new text end

Sec. 28.

Minnesota Statutes 2014, section 349.12, is amended by adding a subdivision
to read:


new text begin Subd. 4a. new text end

new text begin Bingo hall. new text end

new text begin (a) "Bingo hall" means the premises on which an organization
licensed under this chapter regularly conducts bingo if:
 new text end

new text begin (1) more than 50 percent of the organization's gross receipts from lawful gambling
in the prior calendar year were attributable to the conduct of bingo or the organization had
no receipts from lawful gambling in that year; or
 new text end

new text begin (2) no other organization conducts lawful gambling on the premises.
 new text end

new text begin (b) For purposes of this subdivision, "bingo" does not include a linked bingo game
as defined in this section.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016.
 new text end

Sec. 29. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2014, section 297F.05, subdivision 1a, new text end new text begin is repealed.
 new text end

new text begin (b) new text end new text begin Minnesota Rules, part 8125.1300, subpart 3, new text end new text begin is repealed.
 new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 6

MINERALS

Section 1.

Minnesota Statutes 2014, section 298.24, is amended by adding a
subdivision to read:


new text begin Subd. 5. new text end

new text begin TEDF; deposits redirected. new text end

new text begin (a) For concentrates produced by a plant
subject to a reimbursement agreement dated September 9, 2008, by and among Itasca
County, Essar Global Limited, and Minnesota Steel Industries LLC, the provisions of
sections 298.227 and 298.28, subdivision 9a, do not apply to the plant's production.
 new text end

new text begin (b) All amounts not deposited in the taconite economic development fund as a
result of paragraph (a) must be deposited in the Douglas J. Johnson economic protection
trust fund created under section 298.292.
 new text end

new text begin (c) The provisions of this subdivision expire upon certification by the commissioner
of employment and economic development that all requirements of the reimbursement
agreement, as specified in paragraph (a), are satisfied.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2014, section 298.28, subdivision 3, is amended to read:


Subd. 3.

Cities; towns.

(a) 12.5 cents per taxable ton, less any amount distributed
under subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid
account to be distributed as provided in section 298.282.

(b) An amount must be allocated to towns or cities that is annually certified by
the county auditor of a county containing a taconite tax relief area as defined in section
273.134, paragraph (b), within which there is (1) an organized township if, as of January
2, 1982, more than 75 percent of the assessed valuation of the township consists of iron
ore or (2) a city if, as of January 2, 1980, more than 75 percent of the assessed valuation
of the city consists of iron ore.

(c) The amount allocated under paragraph (b) will be the portion of a township's or
city's certified levy equal to the proportion of (1) the difference between 50 percent of
January 2, 1982, assessed value in the case of a township and 50 percent of the January 2,
1980, assessed value in the case of a city and its current assessed value to (2) the sum of
its current assessed value plus the difference determined in (1), provided that the amount
distributed shall not exceed $55 per capita in the case of a township or $75 per capita in
the case of a city. For purposes of this limitation, population will be determined according
to the 1980 decennial census conducted by the United States Bureau of the Census. If the
current assessed value of the township exceeds 50 percent of the township's January 2,
1982, assessed value, or if the current assessed value of the city exceeds 50 percent of the
city's January 2, 1980, assessed value, this paragraph shall not apply. For purposes of this
paragraph, "assessed value," when used in reference to years other than 1980 or 1982,
means the appropriate net tax capacities multiplied by 10.2.

(d) In addition to other distributions under this subdivision, deleted text begin threedeleted text end new text begin 3.25new text end cents per
taxable ton for distributions in deleted text begin 2009deleted text end new text begin 2017 and subsequent yearsnew text end must be allocated for
distribution to new text begin (1) new text end towns that are entirely located within the taconite tax relief area defined
in section 273.134, paragraph (b)new text begin ; and (2) the following unorganized territories in St.
Louis County and Itasca County: 56-17; 58-22; 59-16; 59-21; 60-18; and 60-19new text end . For
deleted text begin distribution in 2010 through 2014 and for distributiondeleted text end new text begin distributionsnew text end in 2018 and subsequent
years, the deleted text begin three-centdeleted text end new text begin 3.25-centnew text end amount must be annually increased in the same proportion
as the increase in the implicit price deflator as provided in section 298.24, subdivision 1.
The amount available under this paragraph deleted text begin willdeleted text end new text begin mustnew text end be distributed to eligible towns new text begin and
eligible unorganized territories new text end on a per capita basis, provided that no town new text begin or unorganized
territory new text end may receive more than $50,000 in any year under this paragraph. Any amount of
the distribution that exceeds the $50,000 limitation for a town new text begin or unorganized territory
new text end under this paragraph must be redistributed on a per capita basis among the other eligible
townsnew text begin and eligible unorganized territoriesnew text end , to whose distributions do not exceed $50,000.
new text begin The amount available to unorganized territories in St. Louis County and Itasca County
may be held by the county and combined for public infrastructure projects for the specified
unorganized territories.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for distributions beginning in 2017
and thereafter.
 new text end

Sec. 3.

Minnesota Statutes 2014, section 298.28, subdivision 5, is amended to read:


Subd. 5.

Counties.

(a) 21.05 cents per taxable ton for distributions in 2015 through
2023, and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated
to counties to be distributed, based upon certification by the commissioner of revenue,
under paragraphs (b) to (d).

(b) 10.525 cents per taxable ton shall be distributed to the county in which the
taconite is mined or quarried or in which the concentrate is produced, less any amount
which is to be distributed pursuant to paragraph (c). The apportionment formula prescribed
in subdivision 2 is the basis for the distribution.

(c) deleted text begin Ifdeleted text end new text begin 1.0 cent per taxable ton of the tax distributed to the counties pursuant to
paragraph (b) shall be paid to a county that received a distribution under this section
in 2000 because there was located in the county new text end an electric power plant owned by and
providing the primary source of power for a taxpayer mining and concentrating taconite
deleted text begin is locateddeleted text end in a new text begin different new text end county deleted text begin other than the county in which the mining and the
concentrating processes are conducted, one cent per taxable ton of the tax distributed to
the counties pursuant to paragraph (b) and imposed on and collected from such taxpayer
shall be paid to the county in which the power plant is locateddeleted text end .

(d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525
cents per taxable ton for distributions beginning in 2024, shall be paid to the county from
which the taconite was mined, quarried or concentrated to be deposited in the county road
and bridge fund. If the mining, quarrying and concentrating, or separate steps in any of
those processes are carried on in more than one county, the commissioner shall follow the
apportionment formula prescribed in subdivision 2.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:


Subd. 7a.

Iron Range school consolidation and cooperatively operated school
account.

The following amounts must be allocated to the Iron Range Resources and
Rehabilitation Board to be deposited in the Iron Range school consolidation and
cooperatively operated school account that is hereby created:

(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax
imposed under section 298.24; and (ii) for distributions beginning in 2024, five cents per
taxable ton of the tax imposed under section 298.24;

(2) the amount as determined under section 298.17, paragraph (b), clause (3);

(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J.
Johnson economic protection trust fund;

(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the
increased tax proceeds attributable to the increase in the implicit price deflator as provided
in section 298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining
one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and

(iii) for distributions in 2017new text begin and thereafternew text end , an amount equal to two-thirds of the
sum of the increased tax proceeds attributable to the increase in the implicit price deflator
as provided in section 298.24, subdivision 1, for distribution years 2015, 2016, and
2017, with the remaining one-third to be distributed to the Douglas J. Johnson economic
protection trust fund; and

(4) any other amount as provided by law.

Expenditures from this account shall be made only to provide disbursements to
assist school districts with the payment of bonds that were issued for qualified school
projects, or for any other school disbursement as approved by the Iron Range Resources
and Rehabilitation Board. For purposes of this section, "qualified school projects" means
school projects within the taconite assistance area as defined in section 273.1341, that were
(1) approved, by referendum, after April 3, 2006; and (2) approved by the commissioner
of education pursuant to section 123B.71.

Beginning in fiscal year 2019, the disbursement to school districts for payments for
bonds issued under section 123A.482, subdivision 9, must be increased each year to
offset any reduction in debt service equalization aid that the school district qualifies for in
that year, under section 123B.53, subdivision 6, compared with the amount the school
district qualified for in fiscal year 2018.

No expenditure under this section shall be made unless approved by seven members
of the Iron Range Resources and Rehabilitation Board.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for distributions beginning in 2017
and thereafter.
 new text end

ARTICLE 7

LOCAL DEVELOPMENT

Section 1.

Minnesota Statutes 2014, section 469.1763, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

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

(b) "Activities" means acquisition of property, clearing of land, site preparation, soils
correction, removal of hazardous waste or pollution, installation of utilities, construction
of public or private improvements, and other similar activities, but only to the extent that
tax increment revenues may be spent for such purposes under other law.

(c) "Third party" means an entity other than (1) the person receiving the benefit
of assistance financed with tax increments, or (2) the municipality or the development
authority or other person substantially under the control of the municipality.

(d) "Revenues derived from tax increments paid by properties in the district" means
only tax increment as defined in section 469.174, subdivision 25, clause (1), and does
not include tax increment as defined in section 469.174, subdivision 25, clauses (2)deleted text begin ,
(3), and (4)deleted text end new text begin to (5)new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2014, section 469.1763, subdivision 2, is amended to read:


Subd. 2.

Expenditures outside district.

(a) For each tax increment financing
district, an amount equal to at least 75 percent of the total revenue derived from tax
increments paid by properties in the district must be expended on activities in the district
or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities
in the district or to pay, or secure payment of, debt service on credit enhanced bonds.
For districts, other than redevelopment districts for which the request for certification
was made after June 30, 1995, the in-district percentage for purposes of the preceding
sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax
increments paid by properties in the district may be expended, through a development fund
or otherwise, on activities outside of the district but within the defined geographic area of
the project except to pay, or secure payment of, debt service on credit enhanced bonds.
For districts, other than redevelopment districts for which the request for certification was
made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is
20 percent. The deleted text begin revenuedeleted text end new text begin revenuesnew text end derived from tax increments deleted text begin fordeleted text end new text begin paid by properties in
new text end the district that are expended on costs under section 469.176, subdivision 4h, paragraph
(b), may be deducted first before calculating the percentages that must be expended within
and without the district.

(b) In the case of a housing district, a housing project, as defined in section 469.174,
subdivision 11, is an activity in the district.

(c) All administrative expenses are for activities outside of the district, except that
if the only expenses for activities outside of the district under this subdivision are for
the purposes described in paragraph (d), administrative expenses will be considered as
expenditures for activities in the district.

(d) The authority may elect, in the tax increment financing plan for the district,
to increase by up to ten percentage points the permitted amount of expenditures for
activities located outside the geographic area of the district under paragraph (a). As
permitted by section 469.176, subdivision 4k, the expenditures, including the permitted
expenditures under paragraph (a), need not be made within the geographic area of the
project. Expenditures that meet the requirements of this paragraph are legally permitted
expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j.
To qualify for the increase under this paragraph, the expenditures must:

(1) be used exclusively to assist housing that meets the requirement for a qualified
low-income building, as that term is used in section 42 of the Internal Revenue Code; and

(2) not exceed the qualified basis of the housing, as defined under section 42(c) of
the Internal Revenue Code, less the amount of any credit allowed under section 42 of
the Internal Revenue Code; and

(3) be used to:

(i) acquire and prepare the site of the housing;

(ii) acquire, construct, or rehabilitate the housing; or

(iii) make public improvements directly related to the housing; or

(4) be used to develop housing:

(i) if the market value of the housing does not exceed the lesser of:

(A) 150 percent of the average market value of single-family homes in that
municipality; or

(B) $200,000 for municipalities located in the metropolitan area, as defined in
section 473.121, or $125,000 for all other municipalities; and

(ii) if the expenditures are used to pay the cost of site acquisition, relocation,
demolition of existing structures, site preparation, and pollution abatement on one or
more parcels, if the parcel contains a residence containing one to four family dwelling
units that has been vacant for six or more months and is in foreclosure as defined in
section 325N.10, subdivision 7, but without regard to whether the residence is the owner's
principal residence, and only after the redemption period has expired.

(e) For a district created within a biotechnology and health sciences industry zone
as defined in Minnesota Statutes 2012, section 469.330, subdivision 6, or for an existing
district located within such a zone, tax increment derived from such a district may be
expended outside of the district but within the zone only for expenditures required for the
construction of public infrastructure necessary to support the activities of the zone, land
acquisition, and other redevelopment costs as defined in section 469.176, subdivision 4j.
These expenditures are considered as expenditures for activities within the district. The
authority provided by this paragraph expires for expenditures made after the later of (1)
December 31, 2015, or (2) the end of the five-year period beginning on the date the district
was certified, provided that date was before January 1, 2016.

(f) The authority under paragraph (d), clause (4), expires on December 31, 2016.
Increments may continue to be expended under this authority after that date, if they are
used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph
(a), if December 31, 2016, is considered to be the last date of the five-year period after
certification under that provision.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2014, section 469.1763, subdivision 3, is amended to read:


Subd. 3.

Five-year rule.

(a) Revenues derived from tax increments new text begin paid by
properties in the district new text end are considered to have been expended on an activity within the
district under subdivision 2 only if one of the following occurs:

(1) before or within five years after certification of the district, the revenues are
actually paid to a third party with respect to the activity;

(2) bonds, the proceeds of which must be used to finance the activity, are issued and
sold to a third party before or within five years after certification, the revenues are spent
to repay the bonds, and the proceeds of the bonds either are, on the date of issuance,
reasonably expected to be spent before the end of the later of (i) the five-year period, or
(ii) a reasonable temporary period within the meaning of the use of that term under section
148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve
or replacement fund;

(3) binding contracts with a third party are entered into for performance of the
activity before or within five years after certification of the district and the revenues are
spent under the contractual obligation;

(4) costs with respect to the activity are paid before or within five years after
certification of the district and the revenues are spent to reimburse a party for payment
of the costs, including interest on unreimbursed costs; or

(5) expenditures are made for housing purposes as permitted by subdivision 2,
paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted
by subdivision 2, paragraph (e).

(b) For purposes of this subdivision, bonds include subsequent refunding bonds if
the original refunded bonds meet the requirements of paragraph (a), clause (2).

(c) For a redevelopment district or a renewal and renovation district certified after
June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a)
are extended to ten years after certification of the district. For a redevelopment district
certified after April 20, 2009, and before June 30, 2012, the five-year periods described in
paragraph (a) are extended to eight years after certification of the district. This extension is
provided primarily to accommodate delays in development activities due to unanticipated
economic circumstances.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2014, section 469.178, subdivision 7, is amended to read:


Subd. 7.

Interfund loans.

new text begin (a) new text end The authority or municipality may advance or loan
money to finance expenditures under section 469.176, subdivision 4, from its general fund
or any other fund under which it has legal authority to do so.

new text begin (b) Not later than 60 days after money is transferred, advanced, or spent, whichever
is earliest,new text end the loan or advance must be authorizeddeleted text begin ,deleted text end by resolution of the governing body or
of the authority, whichever has jurisdiction over the fund from which the advance or loan
is authorizeddeleted text begin , before money is transferred, advanced, or spent, whichever is earliestdeleted text end .

new text begin (c)new text end The resolution may generally grant to new text begin the municipality or new text end the authority the power
to make interfund loans under one or more tax increment financing plans or for one or
more districts.new text begin The resolution may be adopted before or after the adoption of the tax
increment financing plan or the creation of the tax increment financing district from which
the advance or loan is to be repaid.
new text end

new text begin (d) new text end The terms and conditions for repayment of the loan must be provided in
writing deleted text begin anddeleted text end new text begin . The written terms and conditions may be in any form, but mustnew text end include, at
a minimum, the principal amount, the interest rate, and maximum term.new text begin Written terms
may be modified or amended in writing by the municipality or the authority before the
latest decertification of any tax increment financing district from which the interfund loan
is to be repaid.new text end The maximum rate of interest permitted to be charged is limited to the
greater of the rates specified under section 270C.40 or 549.09 as of the date the loan or
advance is authorized, unless the written agreement states that the maximum interest rate
will fluctuate as the interest rates specified under section 270C.40 or 549.09 are from time
to time adjusted.new text begin Loans or advances may be structured as draw-down or line-of-credit
obligations of the lending fund.
new text end

new text begin (e) The authority shall report in the annual report submitted pursuant to section
469.175, subdivision 6:
 new text end

new text begin (1) the amount of any interfund loan or advance made in a calendar year; and
 new text end

new text begin (2) any amendment of an interfund loan or advance made in a calendar year.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to all districts, regardless of when the request for certification was made.
 new text end

Sec. 5.

Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read:


Subd. 2.

Special rules.

(a) If the city elects, upon the adoption of the tax increment
financing plan for a district, the rules under this section apply to a redevelopment district,
renewal and renovation district, new text begin economic development district, new text end soil condition district,
or a soil deficiency district established by the city or a development authority of the city
in the project area.

(b) Prior to or upon the adoption of the first tax increment plan subject to the special
rules under this subdivision, the city must find by resolution that parcels consisting of at
least 80 percent of the acreage of the project area (excluding street and railroad right of
way) are characterized by one or more of the following conditions:

(1) peat or other soils with geotechnical deficiencies that impair development of
residential or commercial buildings or infrastructure;

(2) soils or terrain that requires substantial filling in order to permit the development
of commercial or residential buildings or infrastructure;

(3) landfills, dumps, or similar deposits of municipal or private waste;

(4) quarries or similar resource extraction sites;

(5) floodway; and

(6) substandard buildings within the meaning of Minnesota Statutes, section
469.174, subdivision 10.

(c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to
be characterized by the relevant condition if at least 70 percent of the area of the parcel
contains the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is
deemed to be characterized by substandard buildings if the buildings occupy at least 30
percent of the area of the parcel.

(d) new text begin The four-year rule under Minnesota Statutes, section 469.176, subdivision 6,
is extended to nine years for any district. new text end The five-year rule under Minnesota Statutes,
section 469.1763, subdivision 3, is extended to ten years for any district, and section
469.1763, subdivision 4, does not apply to any district.

(e) Notwithstanding anything to the contrary in section 469.1763, subdivision 2,
paragraph (a), not more than 80 percent of the total revenue derived from tax increments
paid by properties in any district (measured over the life of the district) may be expended
on activities outside the district but within the project area.

(f) For a soil deficiency district:

(1) increments may be collected through 20 years after the receipt by the authority of
the first increment from the district; and

(2) except as otherwise provided in this subdivision, increments may be used only to:

(i) acquire parcels on which the improvements described in item (ii) will occur;

(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
additional cost of installing public improvements directly caused by the deficiencies; and

(iii) pay for the administrative expenses of the authority allocable to the district.

(g) Increments spent for any infrastructure costs, whether inside a district or outside
a district but within the project area, are deemed to satisfy the requirements of paragraph
(f) and Minnesota Statutes, section 469.176, subdivisions 4bnew text begin , 4c,new text end and 4j.

(h) Increments from any district may not be used to pay the costs of landfill closure or
public infrastructure located on the following parcels within the plat known as Burnsville
Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.

(i) The authority to approve tax increment financing plans to establish tax increment
financing districts under this section expires on December 31, deleted text begin 2018deleted text end new text begin 2020new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing body
of the city of Burnsville and compliance with the requirements of Minnesota Statutes,
section 645.021.
 new text end

Sec. 6.

Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter
382, section 84, is amended to read:


Sec. 17. SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT
FINANCING DISTRICT; SPECIAL RULES.

(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and
the governing body of the city of Duluth approves the plan for the tax increment financing
district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020;
010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090;
010-2730-00100; new text begin 010-02730-00120; 010-02730-00130; 010-02730-00140;
new text end 010-2730-00160; 010-2730-00180; 010-2730-00200; 010-2730-00300; new text begin 010-02730-00320;
new text end 010-2746-01250; 010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440;
010-2746-1380; 010-2746-01490; 010-2746-01500; 010-2746-01510; 010-2746-01520;
010-2746-01530; 010-2746-01540; 010-2746-01550; 010-2746-01560; 010-2746-01570;
010-2746-01580; 010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570;
010-3300-04580; 010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year
rule under Minnesota Statutes, section 469.1763, subdivision 3, that activities must be
undertaken within a five-year period from the date of certification of the tax increment
financing district, must be considered to be met if the activities are undertaken within five
years after the date all qualifying parcels are delisted from the Federal Superfund list.

(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4,
beginning in the sixth year following certification of the district requirement, will begin
in the sixth year following the date all qualifying parcels are delisted from the Federal
Superfund list.

(c) The action required under Minnesota Statutes, section 469.176, subdivision 6,
are satisfied if the action is commenced within four years after the date all qualifying
parcels are delisted from the Federal Superfund list and evidence of the action required is
submitted to the county auditor by February 1 of the fifth year following the year in which
all qualifying parcels are delisted from the Federal Superfund list.

(d) For purposes of this section, "qualifying parcels" means United States Steel
parcels listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part
of the USS Site (USEPA OU 02) that are included in the tax increment financing district.

(e) In addition to the reporting requirements of Minnesota Statutes, section 469.175,
subdivision 5, the Seaway Port Authority of Duluth shall report the status of all parcels
listed in paragraph (a) and shown as part of the USS Site (USEPA OU 02). The status report
must show the parcel numbers, the listed or delisted status, and if delisted, the delisting date.

new text begin (f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other
law to the contrary, the Seaway Port Authority of Duluth may establish an interfund loan
program before approval of the tax increment financing plan for or the establishment of
the district authorized by this section. The authority may make loans under this program
and the proceeds of the loans may be used for any permitted use of increments under
this law or Minnesota Statutes, section 469.176, for the district, and may be repaid with
increments from the district established under this section. This subdivision applies to any
action authorized by the Seaway Port Authority of Duluth on or after March 25, 2010.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivision 3.
 new text end

Sec. 7.

Laws 2014, chapter 308, article 6, section 9, is amended to read:


Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING
DISTRICT.

Subdivision 1.

Definitions.

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

(b) "City" means the city of Maple Grove.

(c) "Project area" means new text begin all or a portion of new text end the area in the city commencing at a point
130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of
Section 23, Township 119, Range 22, Hennepin County, said point being on the easterly
right-of-way line of Hemlock Lane; thence northerly along said easterly right-of-way line
of Hemlock Lane to a point on the west line of the east one-half of the Southeast Quarter of
section 23, thence south along said west line a distance of 1,200 feet; thence easterly to the
east line of Section 23, 1,030 feet North from the southeast corner thereof; thence South
74 degrees East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees
West a distance of 650 feet; thence northerly to a point on the northerly right-of-way line
of 81st Avenue North, 650 feet westerly measured at right angles, from the east line of
the Northwest Quarter of Section 24; thence North 13 degrees West a distance of 795
feet; thence West to the west line of the Southeast Quarter of the Northwest Quarter of
Section 24; thence North 55 degrees West to the south line of the Northwest Quarter of the
Northwest Quarter of Section 24; thence West along said south line to the east right-of-way
line of Zachary Lane; thence North along the east right-of-way line of Zachary Lane to
the southwest corner of Lot 1, Block 1, Metropolitan Industrial Park 5th Addition; thence
East along the south line of said Lot 1 to the northeast corner of Outlot A, Metropolitan
Industrial Park 5th Addition; thence South along the east line of said Outlot A and its
southerly extension to the south right-of-way line of County State-Aid Highway (CSAH)
109; thence easterly along the south right-of-way line of CSAH 109 to the east line of the
Northwest Quarter of the Northeast Quarter of Section 24; thence South along said east
line to the north line of the South Half of the Northeast Quarter of Section 24; thence East
along said north line to the westerly right-of-way line of Jefferson Highway North; thence
southerly along the westerly right-of-way line of Jefferson Highway to the centerline of
CSAH 130; thence continuing South along the west right-of-way line of Pilgrim Lane
North to the westerly extension of the north line of Outlot A, Park North Fourth Addition;
thence easterly along the north line of Outlot A, Park North Fourth Addition to the
northeast corner of said Outlot A; thence southerly along the east line of said Outlot A
to the southeast corner of said Outlot A; thence easterly along the south line of Lot 1,
Block 1, Park North Fourth Addition to the westerly right-of-way line of State Highway
169; thence southerly, southwesterly, westerly, and northwesterly along the westerly
right-of-way line of State Highway 169 and the northerly right-of-way line of Interstate
694 to its intersection with the southerly extension of the easterly right-of-way line of
Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary
Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence
westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning
and there terminating, provided that the project area includes the rights-of-way for all
present and future highway interchanges abutting the area described in this paragraphnew text begin , and
may include any additional property necessary to cause the property included in the tax
increment financing district to consist of complete parcelsnew text end .

(d) "Soil deficiency district" means a type of tax increment financing district
consisting of a portion of the project area in which the city finds by resolution that the
following conditions exist:

(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in
the district require substantial filling, grading, or other physical preparation for use; and

(2) the estimated cost of the physical preparation under clause (1), but excluding
costs directly related to roads as defined in Minnesota Statutes, section 160.01, and
local improvements as described in Minnesota Statutes, sections 429.021, subdivision 1,
clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land
before completion of the preparation.

Subd. 2.

Special rules.

(a) If the city elects, upon the adoption of the tax increment
financing plan for a district, the rules under this section apply to a redevelopment
district, renewal and renovation district, soil condition district, or soil deficiency district
established by the city or a development authority of the city in the project area.

(b) Prior to or upon the adoption of the first tax increment plan subject to the special
rules under this subdivision, the city must find by resolution that parcels consisting
of at least 80 percent of the acreage of the project area, excluding street and railroad
rights-of-way, are characterized by one or more of the following conditions:

(1) peat or other soils with geotechnical deficiencies that impair development of
commercial buildings or infrastructure;

(2) soils or terrain that require substantial filling in order to permit the development
of commercial buildings or infrastructure;

(3) landfills, dumps, or similar deposits of municipal or private waste;

(4) quarries or similar resource extraction sites;

(5) floodway; and

(6) substandard buildings, within the meaning of Minnesota Statutes, section
469.174, subdivision 10.

(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by
the relevant condition if at least 70 percent of the area of the parcel contains the relevant
condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
substandard buildings if substandard buildings occupy at least 30 percent of the area
of the parcel.

(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3,
is extended to eight years for any district, and Minnesota Statutes, section 469.1763,
subdivision 4, does not apply to any district.

(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section
469.1763, subdivision 2, paragraph (a), not more than 40 percent of the total revenue
derived from tax increments paid by properties in any district, measured over the life of
the district, may be expended on activities outside the district but within the project area.

(f) For a soil deficiency district:

(1) increments may be collected through 20 years after the receipt by the authority of
the first increment from the district;

(2) increments may be used only to:

(i) acquire parcels on which the improvements described in item (ii) will occur;

(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
additional cost of installing public improvements directly caused by the deficiencies; and

(iii) pay for the administrative expenses of the authority allocable to the district; and

(3) any parcel acquired with increments from the district must be sold at no less
than their fair market value.

(g) Increments spent for any infrastructure costs, whether inside a district or outside
a district but within the project area, are deemed to satisfy the requirements of Minnesota
Statutes, section 469.176, subdivision 4j.

(h) The authority to approve tax increment financing plans to establish tax increment
financing districts under this section expires June 30, 2020.

new text begin (i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use
increments from a soil deficiency district to acquire parcels and for other infrastructure
costs either inside or outside of the district, but within the project area, if the acquisition or
infrastructure is for a qualified development. For purposes of this paragraph, a development
is a qualified development only if all of the following requirements are satisfied:
 new text end

new text begin (1) the city finds, by resolution, that the land acquisition and infrastructure are
undertaken primarily to serve the development;
 new text end

new text begin (2) the city has a binding, written commitment and adequate financial assurances
from the developer that the development will be constructed; and
 new text end

new text begin (3) the development does not consist of retail trade or housing improvements.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing
body of the city of Maple Grove and its compliance with the requirements of Minnesota
Statutes, section 645.021.
 new text end

Sec. 8. new text begin CITY OF ANOKA; TIF DISTRICT.
new text end

new text begin For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c),
the city of Anoka's Greens of Anoka redevelopment tax increment financing district is
deemed to be certified on June 29, 2012, rather than its actual certification date of July 2,
2012, and the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4,
apply as if the district were certified on that date.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing body
of the city of Anoka and upon compliance by the city with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
 new text end

Sec. 9. new text begin CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW.
new text end

new text begin Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision
3, the chief clerical officer of the city of Edina may file the city's certificate of its approval
of Laws 2014, chapter 308, article 6, section 8, by June 30, 2016, and, if the certificate
is so filed and the requirements of Minnesota Statutes, section 645.021, subdivision 3,
are otherwise complied with, the special law is deemed approved, and all actions taken
by the city prior to the effective date of this section in reliance on Laws 2014, chapter
308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308, article
6, section 8, and this act.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2016, without local approval
as an amendment to the provisions of Laws 2014, chapter 308, article 6, section 8.
 new text end

Sec. 10. new text begin CITY OF COON RAPIDS; TAX INCREMENT FINANCING.
new text end

new text begin Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision
1b, or any other law to the contrary, the city of Coon Rapids may collect tax increment
from District 6-1 Port Riverwalk through December 31, 2038.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance by the governing
bodies of the city of Coon Rapids, Anoka County, and Independent School District No.
11 with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and
645.021, subdivision 3.
 new text end

Sec. 11. new text begin CITY OF COTTAGE GROVE; TAX INCREMENT FINANCING.
new text end

new text begin The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that
activities must be undertaken within a five-year period from the date of certification of
a tax increment financing district, is considered to be met for Tax Increment Financing
District No. 1-12 (Gateway North), administered by the Cottage Grove Economic
Development Authority, if the activities are undertaken prior to January 1, 2017.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance by the chief clerical
officer of the governing body of the city of Cottage Grove with the requirements of
Minnesota Statutes, section 645.021, subdivisions 2 and 3.
 new text end

Sec. 12. new text begin CITY OF NORTHFIELD; TAX INCREMENT FINANCING.
new text end

new text begin The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that
activities must be undertaken within a five-year period from the date of certification of a
tax increment financing district, is considered to be met for the Riverfront Tax Increment
Financing District in the city of Northfield, if the activities are undertaken prior to July
12, 2017.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
the city of Northfield and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
 new text end

Sec. 13. new text begin CITY OF RICHFIELD; EXTENSION OF DISTRICT.
new text end

new text begin Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other
law to the contrary, the city of Richfield and the Housing and Redevelopment Authority in
and for the city of Richfield may elect to extend the duration limit of the redevelopment
tax increment financing district known as the Cedar Avenue Tax Increment Financing
District established by Laws 2005, chapter 152, article 2, section 25, by ten years.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance by the city
of Richfield, Hennepin County, and Independent School District No. 280 with the
requirements of Minnesota Statutes, sections 469.1782, subdivision 2; and 645.021,
subdivisions 2 and 3.
 new text end

Sec. 14. new text begin CITY OF ST. PAUL; TIF AUTHORITY.
new text end

new text begin (a) For purposes of computing the duration limits under Minnesota Statutes, section
469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul
may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing
District. This authority is limited to the first four years of increment or increments derived
from taxes payable in 2023, whichever occurs first.
 new text end

new text begin (b) If the city elects to waive receipt of increment under paragraph (a), for purposes
of applying any limits based on when the district was certified under Minnesota Statutes,
section 469.176, subdivision 6, or 469.1763, the date of certification for the district is
deemed to be January 2 of the property tax assessment year for which increment is first
received under the waiver.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016, without local approval
under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).
 new text end

ARTICLE 8

PUBLIC FINANCE

Section 1.

Minnesota Statutes 2014, section 366.095, subdivision 1, is amended to read:


Subdivision 1.

Certificates of indebtedness.

The town board may issue certificates
of indebtedness within the debt limits for a town purpose otherwise authorized by law.
The certificates shall be payable in not more than ten years and be issued on the terms and
in the manner as the board may determinenew text begin , provided that notes issued for projects that
eliminate R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2),
shall be payable in not more than 20 yearsnew text end . If the amount of the certificates to be issued
exceeds 0.25 percent of the estimated market value of the town, they shall not be issued
for at least ten days after publication in a newspaper of general circulation in the town of
the board's resolution determining to issue them. If within that time, a petition asking for
an election on the proposition signed by voters equal to ten percent of the number of voters
at the last regular town election is filed with the clerk, the certificates shall not be issued
until their issuance has been approved by a majority of the votes cast on the question at
a regular or special election. A tax levy shall be made to pay the principal and interest
on the certificates as in the case of bonds.

Sec. 2.

Minnesota Statutes 2014, section 383B.117, subdivision 2, is amended to read:


Subd. 2.

Equipment acquisition; capital notes.

The board may, by resolution and
without public referendum, issue capital notes within existing debt limits for the purpose
of purchasing ambulance and other medical equipment, road construction or maintenance
equipment, public safety equipment and other capital equipment having an expected
useful life at least equal to the term of the notes issued. The notes shall be payable
in not more than ten years and shall be issued on terms and in a manner as the board
determinesnew text begin , provided that notes issued for projects that eliminate R-22, as such projects
are defined in section 240A.09, paragraph (b), clause (2), shall be payable in not more
than 20 yearsnew text end . The total principal amount of the notes issued for any fiscal year shall not
exceed one percent of the total annual budget for that year and shall be issued solely for
the purchases authorized in this subdivision. A tax levy shall be made for the payment
of the principal and interest on such notes as in the case of bonds. For purposes of this
subdivision, "equipment" includes computer hardware and software, whether bundled with
machinery or equipment or unbundled. For purposes of this subdivision, the term "medical
equipment" includes computer hardware and software and other intellectual property for
use in medical diagnosis, medical procedures, research, record keeping, billing, and other
hospital applications, together with application development services and training related
to the use of the computer hardware and software and other intellectual property, all
without regard to their useful life. For purposes of determining the amount of capital notes
which the county may issue in any year, the budget of the county and Hennepin Healthcare
System, Inc. shall be combined and the notes issuable under this subdivision shall be in
addition to obligations issuable under section 373.01, subdivision 3.

Sec. 3.

Minnesota Statutes 2014, section 410.32, is amended to read:


410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.

(a) Notwithstanding any contrary provision of other law or charter, a home rule
charter city may, by resolution and without public referendum, issue capital notes subject
to the city debt limit to purchase capital equipment.

(b) For purposes of this section, "capital equipment" means:

(1) public safety equipment, ambulance and other medical equipment, road
construction and maintenance equipment, and other capital equipment; and

(2) computer hardware and software, whether bundled with machinery or equipment
or unbundled, together with application development services and training related to the
use of the computer hardware and software.

(c) The equipment or software must have an expected useful life at least as long
as the term of the notes.

(d) The notes shall be payable in not more than ten years and be issued on terms and
in the manner the city determinesnew text begin , provided that notes issued for projects that eliminate
R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2), shall be
payable in not more than 20 yearsnew text end . The total principal amount of the capital notes issued
in a fiscal year shall not exceed 0.03 percent of the estimated market value of taxable
property in the city for that year.

(e) A tax levy shall be made for the payment of the principal and interest on the
notes, in accordance with section 475.61, as in the case of bonds.

(f) Notes issued under this section shall require an affirmative vote of two-thirds of
the governing body of the city.

(g) Notwithstanding a contrary provision of other law or charter, a home rule charter
city may also issue capital notes subject to its debt limit in the manner and subject to the
limitations applicable to statutory cities pursuant to section 412.301.

Sec. 4.

Minnesota Statutes 2014, section 412.301, is amended to read:


412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.

(a) The council may issue certificates of indebtedness or capital notes subject to the
city debt limits to purchase capital equipment.

(b) For purposes of this section, "capital equipment" means:

(1) public safety equipment, ambulance and other medical equipment, road
construction and maintenance equipment, and other capital equipment; and

(2) computer hardware and software, whether bundled with machinery or equipment
or unbundled, together with application development services and training related to the
use of the computer hardware or software.

(c) The equipment or software must have an expected useful life at least as long as
the terms of the certificates or notes.

(d) Such certificates or notes shall be payable in not more than ten years and shall
be issued on such terms and in such manner as the council may determinenew text begin , provided,
however, that notes issued for projects that eliminate R-22, as such projects are defined in
section 240A.09, paragraph (b), clause (2), shall be payable in not more than 20 yearsnew text end .

(e) If the amount of the certificates or notes to be issued to finance any such purchase
exceeds 0.25 percent of the estimated market value of taxable property in the city, they
shall not be issued for at least ten days after publication in the official newspaper of
a council resolution determining to issue them; and if before the end of that time, a
petition asking for an election on the proposition signed by voters equal to ten percent
of the number of voters at the last regular municipal election is filed with the clerk, such
certificates or notes shall not be issued until the proposition of their issuance has been
approved by a majority of the votes cast on the question at a regular or special election.

(f) A tax levy shall be made for the payment of the principal and interest on such
certificates or notes, in accordance with section 475.61, as in the case of bonds.

Sec. 5.

Minnesota Statutes 2014, section 469.034, subdivision 2, is amended to read:


Subd. 2.

General obligation revenue bonds.

(a) An authority may pledge the
general obligation of the general jurisdiction governmental unit as additional security for
bonds payable from income or revenues of the project or the authority. The authority
must find that the pledged revenues will equal or exceed 110 percent of the principal and
interest due on the bonds for each year. The proceeds of the bonds must be used for a
qualified housing development project or projects. The obligations must be issued and
sold in the manner and following the procedures provided by chapter 475, except the
obligations are not subject to approval by the electors, and the maturities may extend to
not more than 35 years for obligations sold to finance housing for the elderly and 40 years
for other obligations issued under this subdivision. The authority is the municipality for
purposes of chapter 475.

(b) The principal amount of the issue must be approved by the governing body of
the general jurisdiction governmental unit whose general obligation is pledged. Public
hearings must be held on issuance of the obligations by both the authority and the general
jurisdiction governmental unit. The hearings must be held at least 15 days, but not more
than 120 days, before the sale of the obligations.

(c) The maximum amount of general obligation bonds that may be issued and
outstanding under this section equals the greater of (1) one-half of one percent of the
estimated market value of the general jurisdiction governmental unit whose general
obligation is pledged, or (2) deleted text begin $3,000,000deleted text end new text begin $5,000,000new text end . In the case of county or multicounty
general obligation bonds, the outstanding general obligation bonds of all cities in the
county or counties issued under this subdivision must be added in calculating the limit
under clause (1).

(d) "General jurisdiction governmental unit" means the city in which the housing
development project is located. In the case of a county or multicounty authority, the
county or counties may act as the general jurisdiction governmental unit. In the case of
a multicounty authority, the pledge of the general obligation is a pledge of a tax on the
taxable property in each of the counties.

(e) "Qualified housing development project" means a housing development project
providing housing either for the elderly or for individuals and families with incomes not
greater than 80 percent of the median family income as estimated by the United States
Department of Housing and Urban Development for the standard metropolitan statistical
area or the nonmetropolitan county in which the project is located. The project must be
owned for the term of the bonds either by the authority or by a limited partnership or other
entity in which the authority or another entity under the sole control of the authority is
the sole general partner and the partnership or other entity must receive (1) an allocation
from the Department of Management and Budget or an entitlement issuer of tax-exempt
bonding authority for the project and a preliminary determination by the Minnesota
Housing Finance Agency or the applicable suballocator of tax credits that the project
will qualify for four percent low-income housing tax credits or (2) a reservation of nine
percent low-income housing tax credits from the Minnesota Housing Finance Agency or a
suballocator of tax credits for the project. A qualified housing development project may
admit nonelderly individuals and families with higher incomes if:

(1) three years have passed since initial occupancy;

(2) the authority finds the project is experiencing unanticipated vacancies resulting in
insufficient revenues, because of changes in population or other unforeseen circumstances
that occurred after the initial finding of adequate revenues; and

(3) the authority finds a tax levy or payment from general assets of the general
jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher
income individuals or families are not admitted.

(f) The authority may issue bonds to refund bonds issued under this subdivision in
accordance with section 475.67. The finding of the adequacy of pledged revenues required
by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the
issuance of refunding bonds. This paragraph applies to refunding bonds issued on and
after July 1, 1992.

Sec. 6.

Minnesota Statutes 2014, section 469.101, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

An economic development authority may create
and define the boundaries of economic development districts at any place or places within
the city, except that the district boundaries must be contiguous, and may use the powers
granted in sections 469.090 to 469.108 to carry out its purposes. First the authority must
hold a public hearing on the matter. At least ten days before the hearing, the authority
shall publish notice of the hearing in a deleted text begin dailydeleted text end newspaper of general circulation in the city.
Also, the authority shall find that an economic development district is proper and desirable
to establish and develop within the city.

Sec. 7.

Minnesota Statutes 2014, section 473.39, is amended by adding a subdivision
to read:


new text begin Subd. 1u. new text end

new text begin Obligations. new text end

new text begin (a) In addition to other authority in this section, the council
may issue certificates of indebtedness, bonds, or other obligations under this section in an
amount not exceeding $82,100,000 for capital expenditures as prescribed in the council's
transit capital improvement program and for related costs, including the costs of issuance
and sale of the obligations. Of this authorization, after July 1, 2016, the council may
issue certificates of indebtedness, bonds, or other obligations in an amount not exceeding
$40,100,000, and after July 1, 2017, the council may issue certificates of indebtedness,
bonds, or other obligations in an additional amount not exceeding $42,000,000.
 new text end

new text begin (b) This section applies in the counties of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, and Washington.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2014, section 475.58, subdivision 3b, is amended to read:


Subd. 3b.

Street reconstruction and bituminous overlays.

(a) A municipality may,
without regard to the election requirement under subdivision 1, issue and sell obligations
for street reconstruction or bituminous overlays, if the following conditions are met:

(1) the streets are reconstructed or overlaid under a street reconstruction or overlay
plan that describes the street reconstruction or overlay to be financed, the estimated costs,
and any planned reconstruction or overlay of other streets in the municipality over the next
five years, and the plan and issuance of the obligations has been approved by a vote of
deleted text begin alldeleted text end new text begin a majoritynew text end of the members of the governing body present at the meeting following a
public hearing for which notice has been published in the official newspaper at least ten
days but not more than 28 days prior to the hearing; and

(2) if a petition requesting a vote on the issuance is signed by voters equal to
five percent of the votes cast in the last municipal general election and is filed with the
municipal clerk within 30 days of the public hearing, the municipality may issue the bonds
only after obtaining the approval of a majority of the voters voting on the question of the
issuance of the obligations. If the municipality elects not to submit the question to the
voters, the municipality shall not propose the issuance of bonds under this section for the
same purpose and in the same amount for a period of 365 days from the date of receipt
of the petition. If the question of issuing the bonds is submitted and not approved by the
voters, the provisions of section 475.58, subdivision 1a, shall apply.

(b) Obligations issued under this subdivision are subject to the debt limit of the
municipality and are not excluded from net debt under section 475.51, subdivision 4.

(c) For purposes of this subdivision, street reconstruction and bituminous overlays
includes utility replacement and relocation and other activities incidental to the street
reconstruction, turn lanes and other improvements having a substantial public safety
function, realignments, other modifications to intersect with state and county roads, and
the local share of state and county road projects. For purposes of this subdivision, "street
reconstruction" includes expenditures for street reconstruction that have been incurred
by a municipality before approval of a street reconstruction plan, if such expenditures
are included in a street reconstruction plan approved on or before the date of the public
hearing under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.

(d) Except in the case of turn lanes, safety improvements, realignments, intersection
modifications, and the local share of state and county road projects, street reconstruction
and bituminous overlays does not include the portion of project cost allocable to widening
a street or adding curbs and gutters where none previously existed.

Sec. 9.

Minnesota Statutes 2014, section 475.60, subdivision 2, is amended to read:


Subd. 2.

Requirements waived.

The requirements as to public sale shall not
apply to:

(1) obligations issued under the provisions of a home rule charter or of a law
specifically authorizing a different method of sale, or authorizing them to be issued in such
manner or on such terms and conditions as the governing body may determine;

(2) obligations sold by an issuer in an amount not exceeding the total sum of
$1,200,000 in any 12-month period;

(3) obligations issued by a governing body other than a school board in anticipation
of the collection of taxes or other revenues appropriated for expenditure in a single year, if
sold in accordance with the most favorable of two or more proposals solicited privately;

(4) obligations sold to any board, department, or agency of the United States of
America or of the state of Minnesota, in accordance with rules or regulations promulgated
by such board, department, or agency;

(5) obligations issued to fund pension and retirement fund liabilities under section
475.52, subdivision 6, obligations issued with tender options under section 475.54,
subdivision 5a, crossover refunding obligations referred to in section 475.67, subdivision
13, and any issue of obligations comprised in whole or in part of obligations bearing
interest at a rate or rates which vary periodically referred to in section 475.56;

(6) obligations to be issued for a purpose, in a manner, and upon terms and
conditions authorized by law, if the governing body of the municipality, on the advice of
bond counsel or special tax counsel, determines that interest on the obligations cannot be
represented to be excluded from gross income for purposes of federal income taxation;

(7) obligations issued in the form of an installment purchase contract, lease purchase
agreement, or other similar agreement;

(8) obligations sold under a bond reinvestment program; and

(9) if the municipality has retained an independent deleted text begin financialdeleted text end new text begin municipalnew text end advisor,
obligations which the governing body determines shall be sold by private negotiation.

ARTICLE 9

IRON RANGE RESOURCES AND REHABILITATION

Section 1.

Minnesota Statutes 2014, section 15.38, subdivision 7, is amended to read:


Subd. 7.

Iron Range resources and rehabilitation deleted text begin Boarddeleted text end .

new text begin After seeking
a recommendation from the Iron Range Resources and Rehabilitation Board, new text end the
new text begin commissioner of new text end Iron Range resources and rehabilitation deleted text begin Boarddeleted text end may purchase insurance deleted text begin it
considersdeleted text end new text begin the commissioner deemsnew text end necessary and appropriate to insure facilities operated
by the board.

Sec. 2.

Minnesota Statutes 2014, section 116J.424, is amended to read:


116J.424 IRON RANGE RESOURCES AND REHABILITATION deleted text begin BOARDdeleted text end
CONTRIBUTION.

The commissioner of deleted text begin thedeleted text end Iron Range resources and rehabilitation deleted text begin Board with
approval by the board,deleted text end shall provide an equal match for any loan or equity investment
made for a facility located in the tax relief area defined in section 273.134, paragraph (b),
by the Minnesota minerals 21st century fund created by section 116J.423. The match may
be in the form of a loan or equity investment, notwithstanding whether the fund makes
a loan or equity investment. The state shall not acquire an equity interest because of an
equity investment or loan deleted text begin by the boarddeleted text end new text begin under this sectionnew text end and the deleted text begin board at its sole discretiondeleted text end new text begin
commissioner, after consultation with the Iron Range Resources and Rehabilitation Board,new text end
shall new text begin have the sole discretion to new text end decide what interest deleted text begin itdeleted text end new text begin the boardnew text end acquires in a project. The
commissioner of employment and economic development may require a commitment
from the deleted text begin boarddeleted text end new text begin commissionernew text end to make the match prior to disbursing money from the fund.

Sec. 3.

Minnesota Statutes 2014, section 216B.161, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

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

(b) "Area development rate" means a rate schedule established by a utility that
provides customers within an area development zone service under a base utility rate
schedule, except that charges may be reduced from the base rate as agreed upon by the
utility and the customer consistent with this section.

(c) "Area development zone" means a contiguous or noncontiguous area designated
by an authority or municipality for development or redevelopment and within which one
of the following conditions exists:

(1) obsolete buildings not suitable for improvement or conversion or other identified
hazards to the health, safety, and general well-being of the community;

(2) buildings in need of substantial rehabilitation or in substandard condition; or

(3) low values and damaged investments.

(d) "Authority" means a rural development financing authority established under
sections 469.142 to 469.151; a housing and redevelopment authority established under
sections 469.001 to 469.047; a port authority established under sections 469.048 to
469.068; an economic development authority established under sections 469.090
to 469.108; a redevelopment agency as defined in sections 469.152 to 469.165; the
new text begin commissioner of new text end Iron Range resources and rehabilitationnew text begin , acting after consultation
with thenew text end board established under section 298.22; a municipality that is administering a
development district created under sections 469.124 to 469.133 or any special law; a
municipality that undertakes a project under sections 469.152 to 469.165, except a town
located outside the metropolitan area as defined in section 473.121, subdivision 2, or with
a population of 5,000 persons or less; or a municipality that exercises the powers of a port
authority under any general or special law.

(e) "Municipality" means a city, however organized, and, with respect to a project
undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in
sections 469.152 to 469.165, and, with respect to a project undertaken under sections
469.142 to 469.151 or a county or multicounty project undertaken under sections 469.004
to 469.008, also includes any county.

Sec. 4.

Minnesota Statutes 2014, section 276A.01, subdivision 8, is amended to read:


Subd. 8.

Municipality.

"Municipality" means a city, town, or township located
in whole or part within the area. If a municipality is located partly within and partly
without the area, the references in sections 276A.01 to 276A.09 to property or any portion
thereof subject to taxation or taxing jurisdiction within the municipality are to the property
or portion thereof that is located in that portion of the municipality within the area,
except that the fiscal capacity of the municipality must be computed upon the basis of the
valuation and population of the entire municipality. A municipality shall be excluded from
the area if its municipal comprehensive zoning and planning policies conscientiously
exclude most commercial-industrial development, for reasons other than preserving an
agricultural use. The new text begin commissioner of new text end Iron Range resources and rehabilitation deleted text begin Boarddeleted text end and
the commissioner of revenue shall jointly make this determination annually and shall
notify those municipalities that are ineligible to participate in the tax base sharing program
provided in this chapter for the following year.new text begin Before making the joint determination, the
commissioner of Iron Range resources and rehabilitation shall seek a recommendation
from the Iron Range Resources and Rehabilitation Board.
new text end

Sec. 5.

Minnesota Statutes 2014, section 276A.01, subdivision 17, is amended to read:


Subd. 17.

School fund allocation.

(a) "School fund allocation" means an amount up
to 25 percent of the areawide levy certified by the new text begin commissioner of Iron Range resources
and rehabilitation, after seeking a recommendation from the new text end Iron Range Resources and
Rehabilitation Boardnew text begin ,new text end to be used for the purposes of the Iron Range school consolidation
and cooperatively operated school account under section 298.28, subdivision 7a.

(b) The allocation under paragraph (a) shall only be made after the new text begin commissioner of
Iron Range resources and rehabilitation, after seeking a recommendation from the new text end Iron
Range Resources and Rehabilitation Boardnew text begin ,new text end has certified by June 30 that the Iron Range
school consolidation and cooperatively operated account has insufficient funds to make
payments as authorized under section 298.28, subdivision 7a.

Sec. 6.

Minnesota Statutes 2014, section 282.38, subdivision 1, is amended to read:


Subdivision 1.

Development.

In any county where the county board by proper
resolution sets aside funds for forest development pursuant to section 282.08, clause (5),
item (i), or section 459.06, subdivision 2, the commissioner of Iron Range resources
and rehabilitation deleted text begin with the approval of thedeleted text end new text begin , after seeking a recommendation from the
Iron Range Resources and Rehabilitation new text end Boardnew text begin ,new text end may upon request of the county board
assist said county in carrying out any project for the long range development of its forest
resources through matching of funds or otherwise.

Sec. 7.

Minnesota Statutes 2014, section 298.001, subdivision 8, is amended to read:


Subd. 8.

Commissioner.

"Commissioner" means the commissioner of revenue
of the state of Minnesotanew text begin , except that when used in sections 298.22 to 298.227, and
298.291 to 298.298, "commissioner" means the commissioner of Iron Range resources
and rehabilitationnew text end .

Sec. 8.

Minnesota Statutes 2014, section 298.22, subdivision 1, is amended to read:


Subdivision 1.

The Office of the Commissioner of Iron Range resources
and rehabilitation.

(a) The Office of the Commissioner of Iron Range resources and
rehabilitation is created as an agency in the executive branch of state government. The
governor shall appoint the commissioner of Iron Range resources and rehabilitation
under section 15.06.new text begin The commissioner may expend amounts appropriated to the
commissioner or the board for projects after submitting the expenditure to the board for
a recommendation under subdivision 1a.
new text end

(b) The commissioner may hold other positions or appointments that are not
incompatible with duties as commissioner of Iron Range resources and rehabilitation. The
commissioner may appoint a deputy commissioner. All expenses of the commissioner,
including the payment of staff and other assistance as may be necessary, must be paid
out of the amounts appropriated by section 298.28 or otherwise made available by law
to the commissioner. Notwithstanding chapters 16A, 16B, and 16C, the commissioner
may utilize contracting options available under section 471.345 when the commissioner
determines it is in the best interest of the agency. The agency is not subject to sections
16E.016 and 16C.05.

(c) When the commissioner determines that distress and unemployment exists or
may exist in the future in any county by reason of the removal of natural resources or
a possibly limited use of natural resources in the future and any resulting decrease in
employment, the commissioner may use whatever amounts of the appropriation made to
the commissioner of revenue in section 298.28 that are determined to be necessary and
proper in the development of the remaining resources of the county and in the vocational
training and rehabilitation of its residents, except that the amount needed to cover cost
overruns awarded to a contractor by an arbitrator in relation to a contract awarded by
the commissioner or in effect after July 1, 1985, is appropriated from the general fund.
For the purposes of this section, "development of remaining resources" includes, but is
not limited to, the promotion of tourism.

Sec. 9.

Minnesota Statutes 2014, section 298.22, subdivision 1a, is amended to read:


Subd. 1a.

Iron Range Resources and Rehabilitation Board.

The Iron Range
Resources and Rehabilitation Board consists of the state senators and representatives
elected from state senatorial or legislative districts in which one-third or more of the
residents reside in a taconite assistance area as defined in section 273.1341. One additional
state senator shall also be appointed by the senate Subcommittee on Committees of the
Committee on Rules and Administration. All expenditures and projects made by the
commissioner shall first be submitted to the board deleted text begin for approvaldeleted text end . new text begin The board shall recommend
approval or disapproval or modification of the expenditures and projects. new text end The expenses
of the board shall be paid by the state from the funds raised pursuant to this section.
Members of the board may be reimbursed for expenses in the manner provided in sections
3.099, subdivision 1, and 3.101, and may receive per diem payments during the interims
between legislative sessions in the manner provided in section 3.099, subdivision 1.

The members shall be appointed in January of every odd-numbered year, and shall
serve until January of the next odd-numbered year. Vacancies on the board shall be filled
in the same manner as original members were chosen.

Sec. 10.

Minnesota Statutes 2014, section 298.22, subdivision 5a, is amended to read:


Subd. 5a.

Forest trust.

The commissioner, deleted text begin upon approval bydeleted text end new text begin after requesting a
recommendation fromnew text end the board, may purchase forest lands in the taconite assistance area
defined in under section 273.1341 with funds specifically authorized for the purchase. The
acquired forest lands must be held in trust for the benefit of the citizens of the taconite
assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands shall
be managed and developed for recreation and economic development purposes. The
commissioner, deleted text begin upon approval bydeleted text end new text begin after requesting a recommendation fromnew text end the board,
may sell forest lands purchased under this subdivision if the deleted text begin board findsdeleted text end new text begin commissioner
determinesnew text end that the sale advances the purposes of the trust. Proceeds derived from the
management or sale of the lands and from the sale of timber or removal of gravel or
other minerals from these forest lands shall be deposited into an Iron Range Miners'
Memorial Forest account that is established within the state financial accounts. Funds may
be expended from the account deleted text begin upon approval bydeleted text end new text begin after the commissioner has sought a
recommendation fromnew text end the board, to purchase, manage, administer, convey interests in,
and improve the forest lands. deleted text begin With approval bydeleted text end new text begin After the commissioner has sought a
recommendation fromnew text end the board, money in the Iron Range Miners' Memorial Forest
account may be transferred into the corpus of the Douglas J. Johnson economic protection
trust fund established under sections 298.291 to 298.294. The property acquired under
the authority granted by this subdivision and income derived from the property or the
operation or management of the property are exempt from taxation by the state or its
political subdivisions while held by the forest trust.

Sec. 11.

Minnesota Statutes 2014, section 298.22, subdivision 6, is amended to read:


Subd. 6.

Private entity participation.

new text begin After seeking a recommendation from new text end the
boardnew text begin , the commissionernew text end may acquire an equity interest in any project for which deleted text begin itdeleted text end new text begin the
commissionernew text end provides funding. The commissioner may establish, participate in the
management of, and dispose of the assets of charitable foundations, nonprofit limited
liability companies, and nonprofit corporations associated with any project for which it
provides funding, including specifically, but without limitation, a corporation within the
meaning of section 317A.011, subdivision 6.

Sec. 12.

Minnesota Statutes 2014, section 298.22, subdivision 8, is amended to read:


Subd. 8.

Spending priority.

In making or deleted text begin approvingdeleted text end new text begin recommendingnew text end any
expenditures on programs or projects, the commissioner and the board shall give the
highest priority to programs and projects that target relief to those areas of the taconite
assistance area as defined in section 273.1341, that have the largest percentages of job
losses and population losses directly attributable to the economic downturn in the taconite
industry since the 1980s. The commissioner and the board shall compare the 1980
population and employment figures with the 2000 population and employment figures,
and shall specifically consider the job losses in 2000 and 2001 resulting from the closure
of LTV Steel Mining Company, in making or deleted text begin approvingdeleted text end new text begin recommendingnew text end expenditures
consistent with this subdivision, as well as the areas of residence of persons who suffered
job loss for which relief is to be targeted under this subdivision. The commissioner
may lease, for a term not exceeding 50 years and upon the terms determined by the
commissioner deleted text begin and approveddeleted text end new text begin after seeking reviewnew text end by the board, surface and mineral
interests owned or acquired by the state of Minnesota acting by and through the office of
the commissioner of Iron Range resources and rehabilitation within those portions of the
taconite assistance area affected by the closure of the LTV Steel Mining Company facility
near Hoyt Lakes. The payments and royalties from these leases must be deposited into the
fund established in section 298.292. This subdivision supersedes any other conflicting
provisions of law and does not preclude the commissioner deleted text begin and the boarddeleted text end from making
expenditures for programs and projects in other areasnew text begin after seeking review by the boardnew text end .

Sec. 13.

Minnesota Statutes 2014, section 298.22, subdivision 10, is amended to read:


Subd. 10.

Sale or privatization of functions.

The commissioner of Iron
Range resources and rehabilitation may not sell or privatize the Ironworld Discovery
Center or Giants Ridge Golf and Ski Resort without deleted text begin prior approval bydeleted text end new text begin first seeking a
recommendation from new text end the board.

Sec. 14.

Minnesota Statutes 2014, section 298.22, subdivision 11, is amended to read:


Subd. 11.

Budgeting.

The commissioner of Iron Range resources and rehabilitation
shall annually prepare a budget for operational expenditures, programs, and projects, and
submit it to the Iron Range Resources and Rehabilitation Boardnew text begin for a recommendationnew text end .
After the budget is approved by deleted text begin the board anddeleted text end the governor, the commissioner may spend
money in accordance with the approved budget.

Sec. 15.

Minnesota Statutes 2014, section 298.221, is amended to read:


298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.

(a) Except as provided in paragraph (c), all money paid to the state of Minnesota
pursuant to the terms of any contract entered into by the state under authority of section
298.22 and any fees which may, in the discretion of the commissioner of Iron Range
resources and rehabilitation, be charged in connection with any project pursuant to that
section as amended, shall be deposited in the state treasury to the credit of the Iron Range
Resources and Rehabilitation Board account in the special revenue fund and are hereby
appropriated for the purposes of section 298.22.

(b) Notwithstanding section 16A.013, merchandise may be accepted by the
commissioner of the Iron Range Resources and Rehabilitation Board for payment of
advertising contracts if the commissioner determines that the merchandise can be used
for special event prizes or mementos at facilities operated by the board. Nothing in this
paragraph authorizes the commissioner or a member of the board to receive merchandise
for personal use.

(c) All fees charged by the commissioner in connection with public use of the
state-owned ski and golf facilities at the Giants Ridge Recreation Area and all other
revenues derived by the commissioner from the operation or lease of those facilities
and from the lease, sale, or other disposition of undeveloped lands at the Giants Ridge
Recreation Area must be deposited into an Iron Range Resources and Rehabilitation
Board account that is created within the state enterprise fund. All funds deposited in the
enterprise fund account are appropriated to the commissioner to be expended, deleted text begin subject to
approval bydeleted text end new text begin after seeking a recommendation fromnew text end the board, as follows:

(1) to pay costs associated with the construction, equipping, operation, repair, or
improvement of the Giants Ridge Recreation Area facilities or lands;

(2) to pay principal, interest and associated bond issuance, reserve, and servicing
costs associated with the financing of the facilities; and

(3) to pay the costs of any other project authorized under section 298.22.

Sec. 16.

Minnesota Statutes 2014, section 298.2211, subdivision 3, is amended to read:


Subd. 3.

Project approval.

All projects authorized by this section shall be submitted
by the commissioner to the Iron Range Resources and Rehabilitation Board for deleted text begin approval
bydeleted text end new text begin a recommendation fromnew text end the board. Prior to the commencement of a project involving
the exercise by the commissioner of any authority of sections 469.174 to 469.179, the
governing body of each municipality in which any part of the project is located and the
county board of any county containing portions of the project not located in an incorporated
area shall by majority vote approve or disapprove the project. Any project approved by
the deleted text begin boarddeleted text end new text begin commissionernew text end and the applicable governing bodies, if any, together with detailed
information concerning the project, its costs, the sources of its funding, and the amount of
any bonded indebtedness to be incurred in connection with the project, shall be transmitted
to the governor, who shall approve, disapprove, or return the proposal for additional
consideration within 30 days of receipt. No project authorized under this section shall be
undertaken, and no obligations shall be issued and no tax increments shall be expended for
a project authorized under this section until the project has been approved by the governor.

Sec. 17.

Minnesota Statutes 2014, section 298.2213, subdivision 4, is amended to read:


Subd. 4.

Project approval.

new text begin After seeking a recommendation from new text end the board deleted text begin anddeleted text end new text begin ,
thenew text end commissioner shall by August 1 each year prepare a list of projects to be funded from
the money appropriated in this section with necessary supporting information including
descriptions of the projects, plans, and cost estimates. A project must not be approved by
the deleted text begin boarddeleted text end new text begin commissionernew text end unless deleted text begin itdeleted text end new text begin the commissioner new text end finds that:

(1) the project will materially assist, directly or indirectly, the creation of additional
long-term employment opportunities;

(2) the prospective benefits of the expenditure exceed the anticipated costs; and

(3) in the case of assistance to private enterprise, the project will serve a sound
business purpose.

Each project must be approved by the deleted text begin board and thedeleted text end commissioner of Iron Range
resources and rehabilitation. The list of projects must be submitted to the governor,
who shall, by November 15 of each year, approve, disapprove, or return for further
consideration, each project. The money for a project may be spent only upon approval of
the project by the governor. The deleted text begin boarddeleted text end new text begin commissionernew text end may submit supplemental projects
for approval at any timenew text begin , after seeking a recommendation from the boardnew text end .

Sec. 18.

Minnesota Statutes 2014, section 298.2213, subdivision 5, is amended to read:


Subd. 5.

Advisory committees.

deleted text begin Before submission to the board of a proposal for
a project for expenditure of money appropriated under this section,deleted text end The commissioner
of Iron Range resources and rehabilitation shall appoint a technical advisory committee
consisting of at least seven persons who are knowledgeable in areas related to the
objectives of the proposal. If the project involves investment in a scientific research
proposal, at least four of the committee members must be knowledgeable in the specific
scientific research area relating to the project. Members of the committees must be
compensated as provided in section 15.059, subdivision 3. The deleted text begin boarddeleted text end new text begin commissionernew text end shall
not act on a proposal new text begin for a request for expenditure of money appropriated under this
section new text end until deleted text begin it has receiveddeleted text end new text begin the commissioner has sought review from the board of new text end the
evaluation and recommendations of the technical advisory committee.

Sec. 19.

Minnesota Statutes 2014, section 298.2213, subdivision 6, is amended to read:


Subd. 6.

Use of repayments and earnings.

Principal and interest received in
repayment of loans made under this section must be deposited in the deleted text begin state treasury
and are appropriated to the board for the purposes of this sectiondeleted text end new text begin northeast Minnesota
economic development fund account in the special revenue fund in the state treasury. The
commissioner of Iron Range resources and rehabilitation must seek a recommendation
from the Iron Range Resources and Rehabilitation Board for any use of funds appropriated
under this sectionnew text end .

Sec. 20.

Minnesota Statutes 2014, section 298.223, subdivision 1, is amended to read:


Subdivision 1.

Creation; purposes.

A fund called the taconite environmental
protection fund is created for the purpose of reclaiming, restoring and enhancing those
areas of northeast Minnesota located within the taconite assistance area defined in section
273.1341, that are adversely affected by the environmentally damaging operations
involved in mining taconite and iron ore and producing iron ore concentrate and for the
purpose of promoting the economic development of northeast Minnesota. The taconite
environmental protection fund shall be used for the following purposes:

(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation
Board determines are in need of study and which will determine the environmental
problems requiring remedial action;

(2) reclamation, restoration, or reforestation of mine lands not otherwise provided
for by state law;

(3) local economic development projects but only if those projects are approved by
the deleted text begin boarddeleted text end new text begin commissioner after seeking a recommendation of the projects from the boardnew text end ,
and public works, including construction of sewer and water systems located within the
taconite assistance area defined in section 273.1341;

(4) monitoring of mineral industry related health problems among mining employees;

(5) local public works projects under section 298.227, paragraph (c); and

(6) local public works projects as provided under this clause. The following amounts
shall be distributed in 2009 based upon the taxable tonnage of production in 2008:

(i) .4651 cent per ton to the city of Aurora for street repair and renovation;

(ii) .4264 cent per ton to the city of Biwabik for street and utility infrastructure
improvements to the south side industrial site;

(iii) .6460 cent per ton to the city of Buhl for street repair;

(iv) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements;

(v) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure
upgrades;

(vi) 1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure
upgrades;

(vii) .7752 cent per ton to the city of Mountain Iron for water and sewer infrastructure;

(viii) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility
modifications for the miners' memorial;

(ix) .6460 cent per ton to the town of White for Highway 135 road upgrades;

(x) 1.9380 cents per ton to the city of Hibbing for public infrastructure projects;

(xi) 1.1628 cents per ton to the city of Chisholm for water and sewer repair;

(xii) .6460 cent per ton to the town of Balkan for community center repairs;

(xiii) .9044 cent per ton to the city of Babbitt for city garage construction;

(xiv) .5168 cent per ton to the city of Cook for public infrastructure projects;

(xv) .5168 cent per ton to the city of Ely for reconstruction of 2nd Avenue West;

(xvi) .6460 cent per ton to the city of Tower for water infrastructure upgrades;

(xvii) .1292 cent per ton to the city of Orr for water infrastructure upgrades;

(xviii) .1292 cent per ton to the city of Silver Bay for emergency cleanup;

(xix) .3230 cent per ton to Lake County for trail construction;

(xx) .1292 cent per ton to Cook County for construction of tennis courts in Grand
Marais;

(xxi) .3101 cent per ton to the city of Two Harbors for water infrastructure
improvements;

(xxii) .1938 cent per ton for land acquisition for phase one of Cook Airport project;

(xxiii) 1.0336 cents per ton to the city of Coleraine for water and sewer
improvements along Gayley Avenue;

(xxiv) .3876 cent per ton to the city of Marble for construction of a city
administration facility;

(xxv) .1292 cent per ton to the city of Calumet for repairs at city hall and the
community center;

(xxvi) .6460 cent per ton to the city of Nashwauk for electrical infrastructure
upgrades;

(xxvii) 1.0336 cents per ton to the city of Keewatin for water and sewer upgrades
along Depot Street;

(xxviii) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter
improvements;

(xxix) 1.1628 cents per ton to the city of Grand Rapids for water and sewer
infrastructure upgrades at Pokegema Golf Course and Park Place;

(xxx) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades
for 1st Avenue from River Road to 3rd Street SE; and

(xxxi) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing
at Highway 2 and County Road 62.

Sec. 21.

Minnesota Statutes 2014, section 298.223, subdivision 2, is amended to read:


Subd. 2.

Administration.

(a) The taconite area environmental protection fund shall
be administered by the commissioner of the Iron Range Resources and Rehabilitation
Board. The commissioner shall by September 1 of each year submit to the board a list
of projects to be funded from the taconite area environmental protection fund, with such
supporting information including description of the projects, plans, and cost estimates as
may be necessary.

(b) Each year no less than one-half of the amounts deposited into the taconite
environmental protection fund must be used for public works projects, including
construction of sewer and water systems, as specified under subdivision 1, clause (3).
new text begin After seeking a recommendation from new text end the Iron Range Resources and Rehabilitation Boardnew text begin ,
the commissionernew text end may waive the requirements of this paragraph.

(c) deleted text begin Upon approval by the board,deleted text end The list of projects approvednew text begin by the commissionernew text end
under this subdivisionnew text begin , after the commissioner has sought review of the projects by the
board,new text end shall be submitted to the governor by November 1 of each year. By December 1 of
each year, the governor shall approve or disapprove, or return for further consideration,
each project. Funds for a project may be expended only upon approval of the project by
the deleted text begin boarddeleted text end new text begin commissionernew text end and the governor. The commissioner may submit supplemental
projects deleted text begin to the board anddeleted text end new text begin for approval from the new text end governor deleted text begin for approvaldeleted text end new text begin after seeking review
of the supplemental projects from the board new text end at any time.

Sec. 22.

Minnesota Statutes 2014, section 298.227, is amended to read:


298.227 TACONITE ECONOMIC DEVELOPMENT FUND.

(a) An amount equal to that distributed pursuant to each taconite producer's taxable
production and qualifying sales under section 298.28, subdivision 9a, shall be held by
the Iron Range Resources and Rehabilitation Board in a separate taconite economic
development fund for each taconite and direct reduced ore producer. Money from the
fund for each producer shall be released by the commissioner after review by a joint
committee consisting of an equal number of representatives of the salaried employees and
the nonsalaried production and maintenance employees of that producer. The District 11
director of the United States Steelworkers of America, on advice of each local employee
president, shall select the employee members. In nonorganized operations, the employee
committee shall be elected by the nonsalaried production and maintenance employees. The
review must be completed no later than six months after the producer presents a proposal
for expenditure of the funds to the committee. The funds held pursuant to this section may
be released only for workforce development and associated public facility improvement,
or for acquisition of plant and stationary mining equipment and facilities for the producer
or for research and development in Minnesota on new mining, or taconite, iron, or steel
production technology, but only if the producer provides a matching expenditure equal to
the amount of the distribution to be used for the same purpose beginning with distributions
in 2014. Effective for proposals for expenditures of money from the fund beginning May
26, 2007, the commissioner may not release the funds before the next scheduled meeting
of the board. If a proposed expenditure is not approved by thenew text begin commissioner, after
seeking a recommendation from thenew text end board, the funds must be deposited in the Taconite
Environmental Protection Fund under sections 298.222 to 298.225. If a producer uses
money which has been released from the fund prior to May 26, 2007 to procure haulage
trucks, mobile equipment, or mining shovels, and the producer removes the piece of
equipment from the taconite tax relief area defined in section 273.134 within ten years
from the date of receipt of the money from the fund, a portion of the money granted
from the fund must be repaid to the taconite economic development fund. The portion
of the money to be repaid is 100 percent of the grant if the equipment is removed from
the taconite tax relief area within 12 months after receipt of the money from the fund,
declining by ten percent for each of the subsequent nine years during which the equipment
remains within the taconite tax relief area. If a taconite production facility is sold after
operations at the facility had ceased, any money remaining in the fund for the former
producer may be released to the purchaser of the facility on the terms otherwise applicable
to the former producer under this section. If a producer fails to provide matching funds
for a proposed expenditure within six months after the commissioner approves release
of the funds, the funds are available for release to another producer in proportion to the
distribution provided and under the conditions of this section. Any portion of the fund
which is not released by the commissioner within one year of its deposit in the fund shall
be divided between the taconite environmental protection fund created in section 298.223
and the Douglas J. Johnson economic protection trust fund created in section 298.292 for
placement in their respective special accounts. Two-thirds of the unreleased funds shall be
distributed to the taconite environmental protection fund and one-third to the Douglas J.
Johnson economic protection trust fund.

(b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
distributions and the review process, an amount equal to ten cents per taxable ton of
production in 2007, for distribution in 2008 only, that would otherwise be distributed under
paragraph (a), may be used for a loan or grant for the cost of providing for a value-added
wood product facility located in the taconite tax relief area and in a county that contains a
city of the first class. This amount must be deducted from the distribution under paragraph
(a) for which a matching expenditure by the producer is not required. The granting of the
loan or grant is subject to approval by new text begin the commissioner, after seeking a recommendation
from new text end the board. If the money is provided as a loan, interest must be payable on the loan at
the rate prescribed in section 298.2213, subdivision 3. (ii) Repayments of the loan and
interest, if any, must be deposited in the taconite environment protection fund under
sections 298.222 to 298.225. If a loan or grant is not made under this paragraph by July 1,
2012, the amount that had been made available for the loan under this paragraph must be
transferred to the taconite environment protection fund under sections 298.222 to 298.225.
(iii) Money distributed in 2008 to the fund established under this section that exceeds ten
cents per ton is available to qualifying producers under paragraph (a) on a pro rata basis.

(c) Repayment or transfer of money to the taconite environmental protection fund
under paragraph (b), item (ii), must be allocated by the new text begin commissioner of new text end Iron Range
resources and rehabilitationnew text begin , after seeking a recommendation from the Iron Range
Resources and Rehabilitationnew text end Board for public works projects in house legislative districts
in the same proportion as taxable tonnage of production in 2007 in each house legislative
district, for distribution in 2008, bears to total taxable tonnage of production in 2007, for
distribution in 2008. Notwithstanding any other law to the contrary, expenditures under
this paragraph do not require approval by the governor. For purposes of this paragraph,
"house legislative districts" means the legislative districts in existence on May 15, 2009.

Sec. 23.

Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:


Subd. 7a.

Iron Range school consolidation and cooperatively operated school
account.

The following amounts must be allocated to the Iron Range Resources and
Rehabilitation Board to be deposited in the Iron Range school consolidation and
cooperatively operated school account that is hereby created:

(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax
imposed under section 298.24; and (ii) for distributions beginning in 2024, five cents per
taxable ton of the tax imposed under section 298.24;

(2) the amount as determined under section 298.17, paragraph (b), clause (3);

(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J.
Johnson economic protection trust fund;

(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the
increased tax proceeds attributable to the increase in the implicit price deflator as provided
in section 298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining
one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and

(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the
increased tax proceeds attributable to the increase in the implicit price deflator as provided
in section 298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the
remaining one-third to be distributed to the Douglas J. Johnson economic protection
trust fund; and

(4) any other amount as provided by law.

Expenditures from this account new text begin may be approved as ongoing annual expenditures
andnew text end shall be made only to provide disbursements to assist school districts with the
payment of bonds that were issued for qualified school projects, or for any other school
disbursement as approved by the new text begin commissioner of Iron Range resources and rehabilitation
after the commissioner of Iron Range resources and rehabilitation has sought review of the
expenditures by the new text end Iron Range Resources and Rehabilitation Board. For purposes of this
section, "qualified school projects" means school projects within the taconite assistance
area as defined in section 273.1341, that were (1) approved, by referendum, after April 3,
2006; and (2) approved by the commissioner of education pursuant to section 123B.71.

Beginning in fiscal year 2019, the disbursement to school districts for payments for
bonds issued under section 123A.482, subdivision 9, must be increased each year to
offset any reduction in debt service equalization aid that the school district qualifies for in
that year, under section 123B.53, subdivision 6, compared with the amount the school
district qualified for in fiscal year 2018.

No expenditure under this section shall be made unless approved by deleted text begin seven members
ofdeleted text end new text begin the commissioner of Iron Range resources and rehabilitation after seeking review of the
expenditure fromnew text end the Iron Range Resources and Rehabilitation Board.

Sec. 24.

Minnesota Statutes 2014, section 298.28, subdivision 9d, is amended to read:


Subd. 9d.

Iron Range higher education account.

Five cents per taxable ton must
be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in
an Iron Range higher education account that is hereby created, to be used for higher
education programs conducted at educational institutions in the taconite assistance area
defined in section 273.1341. The Iron Range Higher Education committee under section
298.2214, and the deleted text begin Iron Range Resources and Rehabilitation Boarddeleted text end new text begin commissioner of Iron
Range resources and rehabilitationnew text end must approve all expenditures from the accountnew text begin , after
seeking review and recommendation of the expenditures from the Iron Range Resources
and Rehabilitation Boardnew text end .

Sec. 25.

Minnesota Statutes 2014, section 298.292, subdivision 2, is amended to read:


Subd. 2.

Use of money.

Money in the Douglas J. Johnson economic protection trust
fund may be used for the following purposes:

(1) to provide loans, loan guarantees, interest buy-downs and other forms of
participation with private sources of financing, but a loan to a private enterprise shall be
for a principal amount not to exceed one-half of the cost of the project for which financing
is sought, and the rate of interest on a loan to a private enterprise shall be no less than the
lesser of eight percent or an interest rate three percentage points less than a full faith
and credit obligation of the United States government of comparable maturity, at the
time that the loan is approved;

(2) to fund reserve accounts established to secure the payment when due of the
principal of and interest on bonds issued pursuant to section 298.2211;

(3) to pay in periodic payments or in a lump-sum payment any or all of the interest
on bonds issued pursuant to chapter 474 for the purpose of constructing, converting,
or retrofitting heating facilities in connection with district heating systems or systems
utilizing alternative energy sources;

(4) to invest in a venture capital fund or enterprise that will provide capital to other
entities that are engaging in, or that will engage in, projects or programs that have the
purposes set forth in subdivision 1. No investments may be made in a venture capital fund
or enterprise unless at least two other unrelated investors make investments of at least
$500,000 in the venture capital fund or enterprise, and the investment by the Douglas
J. Johnson economic protection trust fund may not exceed the amount of the largest
investment by an unrelated investor in the venture capital fund or enterprise. For purposes
of this subdivision, an "unrelated investor" is a person or entity that is not related to
the entity in which the investment is made or to any individual who owns more than 40
percent of the value of the entity, in any of the following relationships: spouse, parent,
child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of
the value of all interests in it. For purposes of determining the limitations under this
clause, the amount of investments made by an investor other than the Douglas J. Johnson
economic protection trust fund is the sum of all investments made in the venture capital
fund or enterprise during the period beginning one year before the date of the investment
by the Douglas J. Johnson economic protection trust fund; and

(5) to purchase forest land in the taconite assistance area defined in section 273.1341
to be held and managed as a public trust for the benefit of the area for the purposes
authorized in section 298.22, subdivision 5a. Property purchased under this section may
be sold by the commissioner deleted text begin upon approval bydeleted text end new text begin after seeking a recommendation fromnew text end
the board. The net proceeds must be deposited in the trust fund for the purposes and
uses of this section.

Money from the trust fund shall be expended only in or for the benefit of the taconite
assistance area defined in section 273.1341.

Sec. 26.

Minnesota Statutes 2014, section 298.294, is amended to read:


298.294 INVESTMENT OF FUND.

(a) The trust fund established by section 298.292 shall be invested pursuant to law
by the State Board of Investment and the net interest, dividends, and other earnings arising
from the investments shall be transferred, except as provided in paragraph (b), on the first
day of each month to the trust and shall be included and become part of the trust fund.
The amounts transferred, including the interest, dividends, and other earnings earned
prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year
1983, which is appropriated April 21, 1983, are appropriated from the trust fund to the
commissioner of Iron Range resources and rehabilitation for deposit in a separate account
for expenditure for the purposes set forth in section 298.292. Amounts appropriated
pursuant to this section shall not cancel but shall remain available unless expended.

(b) For fiscal years 2010 and 2011 only, $1,500,000 of the net interest, dividends,
and other earnings under paragraph (a) shall be transferred to a special account. Funds
in the special account are available for loans or grants to businesses, with priority given
to businesses with 25 or fewer employees. Funds may be used for wage subsidies for
up to 52 weeks of up to $5 per hour or other activities, including, but not limited to,
short-term operating expenses and purchase of equipment and materials by businesses
under financial duress, that will create additional jobs in the taconite assistance area
under section 273.1341. Expenditures from the special account must be approved by the
new text begin commissioner after seeking a recommendation from the new text end board.

(c) To qualify for a grant or loan, a business must be currently operating and have
been operating for one year immediately prior to its application for a loan or grant, and its
corporate headquarters must be located in the taconite assistance area.

Sec. 27.

Minnesota Statutes 2014, section 298.296, subdivision 1, is amended to read:


Subdivision 1.

Project approval.

new text begin (a) new text end The new text begin commissioner of Iron Range resources and
rehabilitation, after seeking a recommendation from the new text end board deleted text begin and commissionerdeleted text end new text begin ,new text end shall by
August 1 of each year prepare a list of projects to be funded from the Douglas J. Johnson
economic protection trust with necessary supporting information including description of
the projects, plans, and cost estimates. These projects shall be consistent with the priorities
established in section 298.292 and shall not be approved by the deleted text begin boarddeleted text end new text begin commissionernew text end
unless deleted text begin itdeleted text end new text begin the commissioner, after seeking a recommendation from the board,new text end finds that:

deleted text begin (a)deleted text end new text begin (1)new text end the project will materially assist, directly or indirectly, the creation of
additional long-term employment opportunities;

deleted text begin (b)deleted text end new text begin (2)new text end the prospective benefits of the expenditure exceed the anticipated costs; and

deleted text begin (c)deleted text end new text begin (3)new text end in the case of assistance to private enterprise, the project will serve a sound
business purpose.

new text begin (b) new text end Each project must be approved by deleted text begin over one-half of all of the members of the
board anddeleted text end the commissioner of Iron Range resources and rehabilitationnew text begin after seeking a
recommendation from the board for the projectnew text end . The list of projects shall be submitted to
the governor, who shall, by November 15 of each year, approve or disapprove, or return
for further consideration, each project. The money for a project may be expended only
upon approval of the project by the governor. The deleted text begin boarddeleted text end new text begin commissionernew text end may submit new text begin a
new text end supplemental deleted text begin projectsdeleted text end new text begin projectnew text end for approval at any timenew text begin after seeking a recommendation for
the project from the boardnew text end .

Sec. 28.

Minnesota Statutes 2014, section 298.296, subdivision 2, is amended to read:


Subd. 2.

Expenditure of funds.

(a) Before January 1, 2028, funds may be expended
on projects and for administration of the trust fund only from the net interest, earnings,
and dividends arising from the investment of the trust at any time, including net interest,
earnings, and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made
available for use in fiscal year 1983, except that any amount required to be paid out of the
trust fund to provide the property tax relief specified in Laws 1977, chapter 423, article
X, section 4, and to make school bond payments and payments to recipients of taconite
production tax proceeds pursuant to section 298.225, may be taken from the corpus of
the trust.

(b) Additionally, upon recommendation by thenew text begin commissioner after seeking a
recommendation from thenew text end board, up to $13,000,000 from the corpus of the trust may be
made available for use as provided in subdivision 4, and up to $10,000,000 from the
corpus of the trust may be made available for use as provided in section 298.2961.

(c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust
on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article
8, section 17, may be expended on projects. Funds may be expended for projects under
this paragraph only if the project:

(1) is for the purposes established under section 298.292, subdivision 1, clause
(1) or (2); and

(2) is approved by deleted text begin two-thirds of all of the members ofdeleted text end new text begin the commissioner after
seeking a recommendation fromnew text end the board.

No money made available under this paragraph or paragraph (d) can be used for
administrative or operating expenses of the Iron Range Resources and Rehabilitation Board
or expenses relating to any facilities owned or operated by the board on May 18, 2002.

(d) Upon recommendation by deleted text begin a unanimous vote of all membersdeleted text end new text begin the commissioner
after seeking a unanimous recommendationnew text end of the board, amounts in addition to those
authorized under paragraphs (a), (b), and (c) may be expended on projects described in
section 298.292, subdivision 1.

(e) Annual administrative costs, not including detailed engineering expenses for the
projects, shall not exceed five percent of the net interest, dividends, and earnings arising
from the trust in the preceding fiscal year.

(f) Principal and interest received in repayment of loans made pursuant to this
section, and earnings on other investments made under section 298.292, subdivision 2,
clause (4), shall be deposited in the state treasury and credited to the trust. These receipts
are appropriated to the board for the purposes of sections 298.291 to 298.298.

(g) Additionally, notwithstanding section 298.293, upon the approval of new text begin the
commissioner of Iron Range resources and rehabilitation, after seeking a recommendation
from new text end the board, money from the corpus of the trust may be expanded to purchase forest
lands within the taconite assistance area as provided in sections 298.22, subdivision 5a,
and 298.292, subdivision 2, clause (5).

Sec. 29.

Minnesota Statutes 2014, section 298.296, subdivision 4, is amended to read:


Subd. 4.

Temporary loan authority.

(a) new text begin After seeking a recommendation from new text end the
boardnew text begin , the commissioner of Iron Range resources and rehabilitation new text end may deleted text begin recommend thatdeleted text end new text begin
usenew text end up to $7,500,000 from the corpus of the trust may be deleted text begin useddeleted text end for loans, loan guarantees,
grants, or equity investments as provided in this subdivision. The money would be
available for loans for construction and equipping of facilities constituting (1) a value
added iron products plant, which may be either a new plant or a facility incorporated into
an existing plant that produces iron upgraded to a minimum of 75 percent iron content or
any iron alloy with a total minimum metallic content of 90 percent; or (2) a new mine
or minerals processing plant for any mineral subject to the net proceeds tax imposed
under section 298.015. A loan or loan guarantee under this paragraph may not exceed
$5,000,000 for any facility.

(b) Additionally, the deleted text begin boarddeleted text end new text begin commissioner of Iron Range resources and rehabilitationnew text end
must reserve the first $2,000,000 of the net interest, dividends, and earnings arising
from the investment of the trust after June 30, 1996, to be used for grants, loans, loan
guarantees, or equity investments for the purposes set forth in paragraph (a). This amount
must be reserved until it is used as described in this subdivision.

(c) Additionally, the deleted text begin boarddeleted text end new text begin commissionernew text end may recommend that up to $5,500,000
from the corpus of the trust may be used for additional grants, loans, loan guarantees, or
equity investments for the purposes set forth in paragraph (a).

(d) The new text begin commissioner of Iron Range resources and rehabilitation, after seeking a
recommendation from the new text end boardnew text begin ,new text end may require that deleted text begin itdeleted text end new text begin the boardnew text end receive an equity percentage
in any project to which it contributes under this section.

Sec. 30.

Minnesota Statutes 2014, section 298.2961, subdivision 2, is amended to read:


Subd. 2.

Projects; approval.

(a) Projects funded must be for:

(1) environmentally unique reclamation projects; or

(2) pit or plant repairs, expansions, or modernizations other than for a value added
iron products plant.

(b) deleted text begin To be proposed by the board, a project must be approved bydeleted text end new text begin Before the
commissioner may propose a project, the commissioner must seek a recommendation
fromnew text end the board. The money for a project may be spent only upon approval of the project
by the governor. The deleted text begin boarddeleted text end new text begin commissionernew text end may submit new text begin a new text end supplemental deleted text begin projectsdeleted text end new text begin projectnew text end for
approval at any timenew text begin after seeking a recommendation for the project from the boardnew text end .

(c) The deleted text begin boarddeleted text end new text begin commissionernew text end may require that deleted text begin itdeleted text end new text begin the boardnew text end receive an equity
percentage in any project to which it contributes under this section.

Sec. 31.

Minnesota Statutes 2014, section 298.2961, subdivision 4, is amended to read:


Subd. 4.

Grant and loan fund.

(a) A fund is established to receive distributions
under section 298.28, subdivision 9b, and to make grants or loans as provided in this
subdivision. Any grant or loan made under this subdivision must new text begin first new text end be approved by
the new text begin commissioner after seeking a recommendation from the new text end board, established under
section 298.22.

(b) Distributions received in calendar year 2005 are allocated to the city of Virginia
for improvements and repairs to the city's steam heating system.

(c) Distributions received in calendar year 2006 are allocated to a project of the
public utilities commissions of the cities of Hibbing and Virginia to convert their electrical
generating plants to the use of biomass products, such as wood.

(d) Distributions received in calendar year 2007 must be paid to the city of Tower to
be used for the East Two Rivers project in or near the city of Tower.

(e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution
must be paid to St. Louis County for deposit in its county road and bridge fund to be
used for relocation of St. Louis County Road 715, commonly referred to as Pike River
Road. The remainder of the 2008 distribution must be paid to St. Louis County for a
grant to the city of Virginia for connecting sewer and water lines to the St. Louis County
maintenance garage on Highway 135, further extending the lines to interconnect with the
city of Gilbert's sewer and water lines. All distributions received in 2009 and subsequent
years are allocated for projects under section 298.223, subdivision 1.

Sec. 32.

Minnesota Statutes 2014, section 298.298, is amended to read:


298.298 LONG-RANGE PLAN.

Consistent with the policy established in sections 298.291 to 298.298, the Iron
Range Resources and Rehabilitation Board shall prepare and present to the governor and
the legislature by December 31, 2006, a long-range plan for the use of the Douglas J.
Johnson economic protection trust fund for the economic development and diversification
of the taconite assistance area defined in section 273.1341. No project shall be deleted text begin approveddeleted text end new text begin
recommendednew text end by the Iron Range Resources and Rehabilitation Board deleted text begin whichdeleted text end new text begin if the board
finds that the projectnew text end is not consistent with the goals and objectives established in the
long-range plan.

Sec. 33.

Minnesota Statutes 2014, section 298.46, subdivision 2, is amended to read:


Subd. 2.

Unmined iron ore; valuation petition.

When in the opinion of the duly
constituted authorities of a taxing district there are in existence reserves of unmined iron
ore located in such district, these authorities may petition the new text begin commissioner of new text end Iron Range
resources and rehabilitation deleted text begin Boarddeleted text end for authority to petition the county assessor to verify
the existence of such reserves and to ascertain the value thereof by drilling in a manner
consistent with established engineering and geological exploration methods, in order that
such taxing district may be able to forecast in a proper manner its future economic and
fiscal potentials.new text begin The commissioner of Iron Range resources and rehabilitation may grant
the authority to petition after seeking a recommendation from the Iron Range Resources
and Rehabilitation Board.
new text end

Sec. 34. new text begin IRON RANGE RESOURCES AND REHABILITATION BOARD;
EARLY SEPARATION INCENTIVE PROGRAM AUTHORIZATION.
new text end

new text begin (a) "Commissioner" as used in this section means the commissioner of the Iron
Range Resources and Rehabilitation Board unless otherwise specified.
 new text end

new text begin (b) Notwithstanding any law to the contrary, the commissioner, in consultation
with the commissioner of management and budget, shall offer a targeted early separation
incentive program for employees of the commissioner who have attained the age of 60
years or who have received credit for at least 30 years of allowable service under the
provisions of Minnesota Statutes, chapter 352. The commissioner shall also offer a
targeted separation incentive program for employees of the commissioner whose positions
are in support of operations at Giants Ridge and will be eliminated if the agency no longer
directly manages Giants Ridge operations.
 new text end

new text begin (c) The early separation incentive program may include one or more of the following:
 new text end

new text begin (1) employer-paid postseparation health, medical, and dental insurance until age
65; and
 new text end

new text begin (2) cash incentives that may, but are not required to be, used to purchase additional
years of service credit through the Minnesota State Retirement System, to the extent that
the purchases are otherwise authorized by law.
 new text end

new text begin (d) The commissioner shall establish eligibility requirements for employees to
receive an incentive.
 new text end

new text begin (e) The commissioner, consistent with the established program provisions under
paragraph (b), and with the eligibility requirements under paragraph (f), may designate
specific programs or employees as eligible to be offered the incentive program.
 new text end

new text begin (f) Acceptance of the offered incentive must be voluntary on the part of the
employee and must be in writing. The incentive may only be offered at the sole discretion
of the commissioner.
 new text end

new text begin (g) The cost of the incentive is payable solely by funds made available to the
commissioner by law, but only on prior approval of the expenditures by the commissioner,
after seeking a recommendation from the Iron Range Resources and Rehabilitation Board.
 new text end

new text begin (h) Unilateral implementation of this section by the commissioner is not an unfair
labor practice under Minnesota Statutes, chapter 179A.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
This section is repealed June 30, 2017.
 new text end

Sec. 35. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall identify and propose necessary changes to Minnesota
Statutes and Minnesota Rules that are consistent with the goals of this act to (i) transfer
discretionary approval authority for all expenditures and projects from the Iron Range
Resources and Rehabilitation Board to the commissioner of Iron Range resources and
rehabilitation, and (ii) provide that the commissioner must, in good faith, seek the review
and recommendation of the board, as required, before exercising approval authority. The
revisor shall submit the proposal, in a form ready for introduction, during the 2017 regular
legislative session to the chairs and ranking minority members of the senate and house of
representatives committees with jurisdiction over taxes.
 new text end

ARTICLE 10

SUSTAINABLE FOREST INCENTIVE ACT MODIFICATIONS

Section 1.

Minnesota Statutes 2014, section 290C.01, is amended to read:


290C.01 PURPOSE.

It is the policy of this state to promote sustainable forest resource management on
the state's public and private lands. deleted text begin Recognizing thatdeleted text end new text begin The state'snew text end private forests comprise
approximately one-half of the state forest land resourcesdeleted text begin , that healthy and robust forest
land provides significant benefits to the state of Minnesota, and that addeleted text end new text begin . These forests
play a critical role in protecting water quality and soil resources, and provide extensive
wildlife habitat, diverse recreational experiences, and significant forest products that
support the state's economy. Adnew text end valorem property taxes represent a significant annual
cost that can discourage long-term forest management investmentsnew text begin . In order to foster
silviculture investments and retain these forests for their economic and ecological benefitsnew text end ,
this chapter, hereafter referred to as the "Sustainable Forest Incentive Act," is enacted
to encourage the state's private forest landowners to make a long-term commitment to
sustainable forest management.

Sec. 2.

Minnesota Statutes 2014, section 290C.02, subdivision 1, is amended to read:


Subdivision 1.

Application.

When used in sections 290C.01 to deleted text begin 290C.11deleted text end new text begin 290C.13new text end ,
the terms in this section have the meanings given them.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2014, section 290C.02, subdivision 3, is amended to read:


Subd. 3.

Claimant.

(a) "Claimant" means:

(1) a person, as that term is defined in section 290.01, subdivision 2, who owns
forest land in Minnesota and files an application authorized by the Sustainable Forest
Incentive Act;

(2) a purchaser or grantee if property enrolled in the program was sold or transferred
after the original application was filed and prior to the annual incentive payment being
made; or

(3) an owner of land previously covered by an auxiliary forest contract that
automatically qualifies for inclusion in the Sustainable Forest Incentive Act program
pursuant to section 88.49, subdivision 9a, or 88.491, subdivision 2.

deleted text begin The purchaser or grantee must notify the commissioner in writing of the sale or
transfer of the property.deleted text end new text begin (b)new text end Owners of land that qualifies for inclusion pursuant to section
88.49, subdivision 9a, or 88.491, subdivision 2, must notify the commissioner in writing
of the expiration of the auxiliary forest contract or land trade with a governmental unit
and submit an application to the commissioner by deleted text begin August 15deleted text end new text begin July 1new text end in order to be eligible
to receive a payment by October 1 of that same year. For purposes of section 290C.11,
claimant also includes any person bound by the covenant required in section 290C.04.

deleted text begin (b)deleted text end new text begin (c)new text end No more than one claimant is entitled to a payment under this chapter with
respect to any tract, parcel, or piece of land enrolled under this chapter that has been
assigned the same parcel identification number. When enrolled forest land is owned by
two or more persons, the owners must determine between them which person is eligible
to claim the payments provided under sections 290C.01 to deleted text begin 290C.11deleted text end new text begin 209C.13new text end . In the
case of property sold or transferred, the former owner and the purchaser or grantee must
determine between them which person is eligible to claim the payments provided under
sections 290C.01 to deleted text begin 290C.11deleted text end new text begin 209C.13new text end . The owners, transferees, or grantees must notify
the commissioner in writing which person is eligible to claim the payments.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for certifications and applications
due in 2017 and thereafter.
 new text end

Sec. 4.

Minnesota Statutes 2014, section 290C.02, subdivision 6, is amended to read:


Subd. 6.

Forest land.

"Forest land" means land containing a minimum of 20
contiguous acres for which the owner has implemented a forest management plan that was
prepared or updated within the past ten years by an approved plan writer. For purposes of
this subdivision, acres are considered to be contiguous even if they are separated by a road,
waterway, railroad track, or other similar intervening property. At least 50 percent of the
contiguous acreage must meet the definition of forest land in section 88.01, subdivision 7.
For the purposes of sections 290C.01 to deleted text begin 290C.11deleted text end new text begin 209C.13new text end , forest land does not include
(i) land used for residential or agricultural purposes, (ii) land enrolled in the reinvest in
Minnesota program, a state or federal conservation reserve or easement reserve program
under sections 103F.501 to 103F.531, the Minnesota agricultural property tax law under
section 273.111, or land subject to agricultural land preservation controls or restrictions
as defined in section 40A.02 or under the Metropolitan Agricultural Preserves Act under
chapter 473H, (iii) deleted text begin land exceeding 60,000 acres that is subject to a single conservation
easement funded under section 97A.056 or a comparable permanent easement conveyed
to a governmental or nonprofit entity; (iv)deleted text end any land that becomes subject to a conservation
easement funded under section 97A.056 or a comparable permanent easement conveyed
to a governmental or nonprofit entity after May 30, 2013; or deleted text begin (v)deleted text end new text begin (iv) new text end land improved with a
structuredeleted text begin ,deleted text end new text begin ;new text end pavement, new text begin other than a paved trail under easement, lease, or terminable license
to the state of Minnesota or a political subdivision; new text end sewerdeleted text begin ,deleted text end new text begin ;new text end campsitedeleted text begin ,deleted text end new text begin ;new text end or any road, other
than a township road, used for purposes not prescribed in the forest management plan.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications made in 2017 and
thereafter.
new text end

Sec. 5.

Minnesota Statutes 2014, section 290C.03, is amended to read:


290C.03 ELIGIBILITY REQUIREMENTS.

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

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

(2) a forest management plan for the land must be prepared by an approved plan
writer and implemented during the period in which the land is enrolled;

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

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

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

(6) claimants enrolling more than 1,920 acresnew text begin or enrolling any land that is subject
to a conservation easement funded under section 97A.056, or a comparable permanent
easement conveyed to a governmental or nonprofit entitynew text end in the sustainable forest incentive
program must allow year-round, nonmotorized access to fish and wildlife resources and
motorized access on established and maintained roads and trails, unless the road or trail is
temporarily closed for safety, natural resource, or road damage reasons on enrolled land
except within one-fourth mile of a permanent dwelling or during periods of high fire
hazard as determined by the commissioner of natural resourcesdeleted text begin .deleted text end new text begin ;
new text end

new text begin (7) the claimant has registered the forest management plan under clause (2) with the
commissioner of natural resources, who has determined that the land meets qualifications
for enrollment; and
 new text end

new text begin (8) the land is not classified as class 2c managed forest land.
 new text end

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

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

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

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

new text begin (c) The commissioner of natural resources shall annually provide county assessors
verification information regarding plan registration under paragraph (a), clause (7), on
a timely basis.
 new text end

new text begin (d) A minimum of three acres must be excluded from enrolled land when the land is
improved with a structure that is not a minor, ancillary, and nonresidential structure.
 new text end

new text begin (e) If land does not meet the definition of forest land in section 290C.02, subdivision
6, because the land is:
new text end

new text begin (1) enrolled in a state or federal conservation reserve or easement program under
sections 103F.501 to 103F.531;
new text end

new text begin (2) subject to the Minnesota agricultural property tax under section 273.111; or
new text end

new text begin (3) subject to agricultural land preservation controls or restrictions as defined in
section 40A.02, or the Metropolitan Agricultural Preserves Act under chapter 473H, the
entire tax parcel that contains the land is not eligible to be enrolled in the program.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for certifications and applications
due in 2017 and thereafter.
 new text end

Sec. 6.

Minnesota Statutes 2014, section 290C.04, is amended to read:


290C.04 APPLICATIONS.

(a) A landowner may apply to enroll forest land for the sustainable forest incentive
program under this chapter. The claimant must complete, sign, and submit an application
to the commissioner by September 30 in order for the land to become eligible beginning
in the next year. The application shall be on a form prescribed by the deleted text begin commissioner
deleted text end new text begin commissioners of revenue and natural resources new text end and must include the information the
commissioner deems necessary. At a minimum, the application must show the following
information for the land and the claimant: (i) the claimant's Social Security number or
state or federal business tax registration number and date of birth, (ii) the claimant's
address, (iii) the claimant's signature, (iv) the county's parcel identification numbers for
the tax parcels that completely contain the claimant's forest land that is sought to be
enrolled, (v) the number of acres eligible for enrollment in the program, (vi) the approved
plan writer's signature and identification number, deleted text begin anddeleted text end (vii) proof, in a form specified by the
commissioner, that the claimant has executed and acknowledged in the manner required
by law for a deed, and recorded, a covenant that the land is not and shall not be developed
in a manner inconsistent with the requirements and conditions of this chapternew text begin , and (viii) a
registration number for the forest management plan, issued by the commissioner of natural
resourcesnew text end . The covenant shall state in writing that the covenant is binding on the claimant
and the claimant's successor or assignee, and that it runs with the land for a period of not
less than eight yearsnew text begin unless the claimant requests termination of the covenant after a
reduction in payments due to changes in the payment formula under section 290C.07 or as
a result of executive action, the amount of payment a claimant is eligible to receive under
section 290C.07 is reduced or limitednew text end . The commissioner shall specify the form of the
covenant and provide copies upon request. The covenant must include a legal description
that encompasses all the forest land that the claimant wishes to enroll under this section or
the certificate of title number for that land if it is registered land.new text begin The commissioner of
natural resources shall record the area eligible for enrollment into the Sustainable Forest
Incentive Act as electronic geospatial data, as defined in section 16E.30, subdivision 10.
new text end

new text begin (b) The commissioner shall provide a copy of the application filed by the claimant
and all supporting materials to the commissioner of natural resources within 15 days of
receipt or by September 1, whichever is sooner. The commissioner of natural resources
must notify the commissioner whether the applicant qualifies for enrollment within 30
days of receipt, and if the applicant qualifies for enrollment, the commissioner of natural
resources shall specify the number of qualifying acres per tax parcel.
 new text end

deleted text begin (b) In all cases,deleted text end new text begin (c)new text end The commissioner shall notify the claimant within 90 days after
receipt of a completed application that either the land has or has not been approved for
enrollment. A claimant whose application is denied may appeal the denial as provided
in section 290C.13.

deleted text begin (c)deleted text end new text begin (d)new text end Within 90 days after the denial of an application, or within 90 days after the
final resolution of any appeal related to the denial, the commissioner shall execute and
acknowledge a document releasing the land from the covenant required under this chapter.
The document must be mailed to the claimant and is entitled to be recorded.

deleted text begin (d)deleted text end new text begin (e)new text end The Social Security numbers collected from individuals under this section are
private data as provided in section 13.355. The federal business tax registration number
and date of birth data collected under this section are also private data on individuals or
nonpublic data, as defined in section 13.02, subdivisions 9 and 12, but may be shared
with county assessors for purposes of tax administration and with county treasurers for
purposes of the revenue recapture under chapter 270A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for certifications and applications
due in 2017 and thereafter.
 new text end

Sec. 7.

Minnesota Statutes 2014, section 290C.05, is amended to read:


290C.05 ANNUAL CERTIFICATIONnew text begin AND MONITORINGnew text end .

new text begin (a) new text end On or before deleted text begin July 1deleted text end new text begin May 15new text end of each year, beginning with the year after the
original claimant has received an approved application, the commissioner shall send each
claimant enrolled under the sustainable forest incentive program a certification form. For
purposes of this section, the deleted text begin originaldeleted text end claimant is the deleted text begin person that filed the first application
under section 290C.04 to enroll the land in the programdeleted text end new text begin current property owner on record,
or the person designated by the owners in the case of multiple ownershipnew text end . The claimant
must sign new text begin and returnnew text end the certificationdeleted text begin , attestingdeleted text end new text begin to the commissioner by July 1 of that
same year, and (1) attestnew text end that the requirements and conditions for continued enrollment
in the program are currently being met, and deleted text begin must return the signed certification form to
the commissioner by August 15 of that same yeardeleted text end new text begin (2) provide a report in the form and
manner determined by the commissioner of natural resources describing the management
practices that have been carried out on the enrolled property during the prior yearnew text end . If the
claimant does not return an annual certification form by the due date, the provisions
in section 290C.11 apply.new text begin The commissioner of natural resources must verify that the
claimant meets program requirements.
new text end

new text begin (b) The commissioner must provide the certification form and annual report described
in paragraph (a), clause (2), to the commissioner of natural resources by August 1.
 new text end

new text begin (c) The commissioner of natural resources must conduct annual monitoring
of a subset of claimants, excluding land also enrolled in a conservation easement
program. Claimants will be selected for monitoring based on reported violations, annual
certification, and random selections. Monitoring will be conducted on ten percent of
claimants as of July 1 of each year. Monitoring may include, but is not limited to, a site
visit by a Department of Natural Resources or contracted forester. The commissioner of
natural resources must develop a monitoring form to record the monitoring data.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraphs (a) and (b) are effective for certifications and
applications due in 2017 and thereafter. Paragraph (c) is effective July 1, 2019.
 new text end

Sec. 8.

Minnesota Statutes 2014, section 290C.055, is amended to read:


290C.055 LENGTH OF COVENANT.

(a) deleted text begin The covenant remains in effect for a minimum of eight years.deleted text end new text begin Claimants enrolling
any land that is subject to a conservation easement funded under section 97A.056 or a
comparable permanent easement conveyed to a governmental or nonprofit entity must
enroll their land under a covenant with a minimum duration of eight years. All other
claimants may choose to enroll their land under a covenant with a minimum duration of
eight, 20, or 50 years. new text end If deleted text begin land is removeddeleted text end new text begin the claimant requests removal of landnew text end from the
program before it has been enrolled for deleted text begin four yearsdeleted text end new text begin one-half the number of years of the
covenant's durationnew text end , the covenant remains in effect for deleted text begin eight yearsdeleted text end new text begin the entire duration
of the covenant new text end from the date recorded.

(b) If land that has been enrolled for deleted text begin four yearsdeleted text end new text begin one-half the number of years of the
covenant's minimum durationnew text end or more is removed from the program for any reason, there
is a waiting period before the covenant terminates. The covenant terminates on January 1
of the fifthnew text begin , 11th, or 26thnew text end calendar year new text begin for the eight-, 20-, or 50-year minimum covenant,
respectively, new text end that begins after the date that:

(1) the commissioner receives notification from the claimant that the claimant wishes
to remove the land from the program under section 290C.10; or

(2) the date that the land is removed from the program under section 290C.11.

(c) Notwithstanding the other provisions of this section, the covenant is terminated:

(1) at the same time that the land is removed from the program due to acquisition of
title or possession for a public purpose under section 290C.10; or

(2) at the request of the claimant deleted text begin afterdeleted text end new text begin (i) if there isnew text end a reduction in payments due to
changes in the payment formula under section 290C.07new text begin ; or (ii) if, as a result of executive
action, the amount of payment a claimant is eligible to receive under section 290C.07 is
reduced or limitednew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for certifications and applications in
2017 and thereafter.
 new text end

Sec. 9.

Minnesota Statutes 2014, section 290C.07, is amended to read:


290C.07 CALCULATION OF INCENTIVE PAYMENT.

new text begin (a) new text end An approved claimant under the sustainable forest incentive program is eligible
to receive an annual paymentnew text begin for each acre of enrolled land, excluding any acre improved
with a paved trail under easement, lease, or terminable license to the state of Minnesota or
a political subdivisionnew text end . The payment shall equal deleted text begin $7 per acre for each acre enrolled in the
sustainable forest incentive program.deleted text end new text begin a percentage of the property tax that would be paid
on the land determined by using the previous year's statewide average total tax rate for all
taxes levied within townships and unorganized territories, the estimated market value per
acre as calculated in section 290C.06, and a class rate of one percent as follows: (1) for
claimants enrolling land that is subject to a conservation easement funded under section
97A.056 or a comparable permanent easement conveyed to a governmental or nonprofit
entity before May 31, 2013, 25 percent; (2) for claimants enrolling land that is not subject
to a conservation easement under an eight-year covenant, 65 percent; (3) for claimants
enrolling land that is not subject to a conservation easement under a 20-year covenant, 90
percent; and (4) for claimants enrolling land that is not subject to a conservation easement
under a 50-year covenant, 115 percent.
new text end

new text begin (b) The calculated payment shall not be less than the payment received in 2016 and
shall not increase or decrease by more than ten percent relative to the payment received
for the previous year.
 new text end

new text begin (c) In addition to the payments provided under this section, a claimant enrolling
more than 1,920 acres shall be allowed an additional payment per acre equal to the
amount prescribed in paragraph (a), clause (1), for all acres of enrolled land on which
public access is allowed, as required under section 290C.03, paragraph (a), clause (6),
excluding any land subject to a conservation easement funded under section 97A.056, or a
permanent easement conveyed to a governmental or nonprofit entity that is required to
allow for public access under section 290C.03, paragraph (a), clause (6).
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for calculations made in 2017 and
thereafter.
new text end

Sec. 10.

Minnesota Statutes 2014, section 290C.08, subdivision 1, is amended to read:


Subdivision 1.

Annual payment.

An incentive payment for each acre of enrolled
land will be made annually to each claimant in the amount determined under section
290C.07. new text begin By September 15 of each year, the commissioner of natural resources will
certify to the commissioner the eligibility of each claimant to receive a payment. new text end The
incentive payment shall be paidnew text begin by the commissionernew text end on or before October 1 each year
based on the certifications due deleted text begin August 15deleted text end new text begin July 1new text end of that year. Interest at the annual rate
determined under section 270C.40 shall be included with any incentive payment not
paid by the later of October 1 of the year the certification was due, or 45 days after the
completed certification was returned or filed if the commissioner accepts a certification
filed after deleted text begin August 15deleted text end new text begin July 1new text end of the taxes payable year as the resolution of an appeal.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for certifications and applications
due in 2017 and thereafter.
 new text end

Sec. 11.

Minnesota Statutes 2014, section 290C.10, is amended to read:


290C.10 WITHDRAWAL PROCEDURES.

deleted text begin An approved claimantdeleted text end new text begin (a) The current owner of land enrollednew text end under the sustainable
forest incentive program for a minimum of deleted text begin four yearsdeleted text end new text begin one-half the number of years
of the covenant's minimum durationnew text end may notify the commissioner of the intent to
terminate enrollment. Within 90 days of receipt of notice to terminate enrollment, the
commissioner shall inform the claimant in writing, acknowledging receipt of this notice
and indicating the effective date of termination from the sustainable forest incentive
program. Termination of enrollment in the sustainable forest incentive program occurs on
January 1 of the fifthnew text begin , 11th, or 26thnew text end calendar yearnew text begin for the eight-, 20-, or 50-year respective
minimum covenantnew text end that begins after receipt by the commissioner of the termination
notice. After the commissioner issues an effective date of termination, a claimant wishing
to continue the land's enrollment in the sustainable forest incentive program beyond the
termination date must apply for enrollment as prescribed in section 290C.04. A claimant
who withdraws a parcel of land from this program may not reenroll the parcel for a period
of three years. Within 90 days after the termination date, the commissioner shall execute
and acknowledge a document releasing the land from the covenant required under this
chapter. The document must be mailed to the claimant and is entitled to be recorded.

new text begin (b) Notwithstanding paragraph (a), on request of the claimant, new text end the commissioner may
allow early withdrawal from the Sustainable Forest Incentive Act without penalty when the
state of Minnesota, any local government unit, or any other entity which has the power of
eminent domain acquires title or possession to the land for a public purpose deleted text begin notwithstanding
the provisions of this sectiondeleted text end . In the case of deleted text begin suchdeleted text end new text begin an eligiblenew text end acquisitionnew text begin under this
paragraphnew text end , the commissioner shall execute and acknowledge a document releasing the
land acquired by the state, local government unit, or other entity from the covenant.

new text begin (c) Notwithstanding paragraph (a), upon request of the claimant, the commissioner
shall allow early withdrawal from the Sustainable Forest Incentive Act without penalty
when a government or nonprofit entity acquires a permanent conservation easement on the
enrolled property and the conservation easement is at least as restrictive as the covenant
required under section 290C.04. The commissioner of natural resources must notify the
commissioner of lands acquired under this paragraph that are eligible for withdrawal.
In the case of an eligible easement acquisition under this paragraph, the commissioner
shall execute and acknowledge a document releasing the land subject to the easement
from the covenant.
 new text end

new text begin (d) Notwithstanding paragraph (a), upon request of the claimant, the commissioner
shall allow early withdrawal from the Sustainable Forest Incentive Act without penalty for
land that is subject to fee or easement acquisition or lease to the state of Minnesota or a
political subdivision of the state for the public purpose of a paved trail. The commissioner
of natural resources must notify the commissioner of lands acquired under this paragraph
that are eligible for withdrawal. In the case of an eligible fee or easement acquisition or
lease under this paragraph, the commissioner shall execute and acknowledge a document
releasing the land subject to fee or easement acquisition or lease by the state or political
subdivision of the state.
 new text end

new text begin (e)new text end All other enrolled land must remain in the program.

new text begin EFFECTIVE DATE. new text end

new text begin The amendments to paragraphs (c) and (d) are effective
the day following final enactment. The amendments to paragraphs (a), (b), and (e) are
effective for notifications made in 2017 and thereafter.
 new text end

Sec. 12.

new text begin [290C.101] TRANSFER OF OWNERSHIP.
 new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings provided.
 new text end

new text begin (b) "New owner" means a prospective purchaser or grantee.
 new text end

new text begin (c) "Owner" means a grantor or seller.
 new text end

new text begin Subd. 2. new text end

new text begin Notification to commissioner. new text end

new text begin (a) An owner must notify the commissioner
if the owner transfers any or all of the owner's land enrolled in the sustainable forest
incentive program to one or more new owners within 60 days of the transfer of title to the
property. The notification must include the legal descriptions of the transferred property,
the tax parcel numbers, and the name and address of the new owner. If transfer of ownership
is a result of the death of the claimant, the provisions of section 290C.12 shall apply.
 new text end

new text begin (b) Upon notification, the commissioner shall inform the new owner of the
restrictions of the covenant required by section 290C.04 and the withdrawal procedures
under section 290C.10. In order for the new owner to receive payments pursuant to this
chapter, the new owner must file an application and register a new forest management plan
with the commissioner of natural resources within two years from the date the title of the
property was transferred to remain eligible.
 new text end

new text begin Subd. 3. new text end

new text begin Termination of enrollment. new text end

new text begin The commissioner will terminate enrollment
according to the procedure in section 290C.10 for failure of the new owner to register a
forest management plan within the time period in subdivision 2, paragraph (b).
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016.
 new text end

Sec. 13.

Minnesota Statutes 2014, section 290C.11, is amended to read:


290C.11 PENALTIES FOR REMOVAL.

(a) If the commissioner determines that land enrolled in the sustainable forest
incentive program is in violation of the conditions for enrollment as specified in section
290C.03,new text begin or upon notification by the commissioner of natural resources that land enrolled
is in violation of the conditions for enrollment,new text end the commissioner shall notify the deleted text begin claimant
deleted text end new text begin current owner of the landnew text end of the intent to remove deleted text begin alldeleted text end new text begin the tax parcel of thenew text end enrolled land
new text begin where the violation has occurred new text end from the sustainable forest incentive program. new text begin The
penalties described under paragraph (c) apply. new text end The deleted text begin claimantdeleted text end new text begin current ownernew text end has 60 days to
appeal this determination under the provisions of section 290C.13.

(b) If the commissioner determines the land is to be removed from the sustainable
forest incentive programnew text begin due to the construction or addition of an improvement to the
propertynew text end , the deleted text begin claimantdeleted text end new text begin owner of the tax parcel that is in violationnew text end is liable for payment
to the commissioner in the amount equal tonew text begin : (1) new text end the payments deleted text begin receiveddeleted text end new text begin issued related to
the enrolled tax parcelnew text end under this chapter for the previous four-year periodnew text begin in the case of
an eight-year minimum covenant, ten-year period in the case of a 20-year minimum
covenant, or 25-year period in the case of a 50-year minimum covenantnew text end , plus interestnew text begin ; and
(2) 25 percent of the estimated market value of the property as reclassified under section
273.13 due to the structure being on the tax parcel, as determined by the assessornew text end .

new text begin (c) If the commissioner of natural resources determines that the land is used for
purposes other than forestry purposes, the commissioner of natural resources shall notify
the commissioner of revenue, who shall notify the current owner of the tax parcel that is in
violation that the current owner is liable to the commissioner in an amount equal to: (1) 30
percent of the estimated market value as property reclassified under section 273.13, due
to the change in use, as determined by the assessor; and (2) the payments issued related
to the enrolled tax parcel under this chapter for the previous four-year period in the case
of an eight-year covenant, ten-year period in the case of a 20-year covenant, or 25-year
period in the case of a 50-year covenant, plus interest.
 new text end

new text begin (d)new text end The claimant has 90 days to satisfy the payment for removal of land from the
sustainable forest incentive program under this section. If the penalty is not paid within
the 90-day period under this paragraph, the commissioner shall certify the amount to the
county auditor for collection as a part of the general ad valorem real property taxes on the
land in the following taxes payable year.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2014, section 290C.13, subdivision 6, is amended to read:


Subd. 6.

Determination of appeal.

On the basis of applicable law and available
information, the commissioner shall determine the validity, if any, in whole or in part,
of the appeal and notify the claimant of the decision. This notice must be in writing
and contain the basis for the determination.new text begin The commissioner shall consult with the
commissioner of natural resources when an appeal relates to the use of the property for
forestry or nonforestry purposes and for appeals related to forest management plans.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 15. new text begin SUSTAINABLE FOREST INCENTIVE ACT; TRANSITION
PROVISION.
new text end

new text begin (a) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2016, the
owner of enrolled lands may elect through May 15, 2018, and without penalty, to change
the length of a covenant, if eligible, under Minnesota Statutes, section 290C.055. The
owner of enrolled land must provide notice to the Department of Revenue of its intent to
change the length of its covenant.
 new text end

new text begin (b) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2016, the
owner of enrolled land must comply with the changes made in the act by certifications due
in 2018, as required under Minnesota Statutes, section 290C.05.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 16. new text begin ADMINISTRATIVE APPROPRIATION.
new text end

new text begin $600,000 in fiscal year 2017 is appropriated from the general fund to the
commissioner of natural resources for administering this article. The funding base for
administering this article in fiscal year 2018 and thereafter is $600,000.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 17. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 290C.02, subdivisions 5 and 9, new text end new text begin are repealed.
 new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 11

MISCELLANEOUS

Section 1.

Minnesota Statutes 2015 Supplement, section 16A.152, subdivision 2,
is amended to read:


Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general
fund revenues and expenditures, the commissioner of management and budget determines
that there will be a positive unrestricted budgetary general fund balance at the close of
the biennium, the commissioner of management and budget must allocate money to the
following accounts and purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;

(2) the budget reserve account established in subdivision 1a until that account
reaches deleted text begin $810,992,000deleted text end new text begin $1,596,522,000new text end ;

(3) the amount necessary to increase the aid payment schedule for school district
aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
nearest tenth of a percent without exceeding the amount available and with any remaining
funds deposited in the budget reserve;new text begin and
new text end

(4) the amount necessary to restore all or a portion of the net aid reductions under
section 127A.441 and to reduce the property tax revenue recognition shift under section
123B.75, subdivision 5, by the same amountdeleted text begin ;deleted text end new text begin .
new text end

deleted text begin (5) the closed landfill investment fund established in section 115B.421 until
$63,215,000 has been transferred into the account. This clause expires after the entire
amount of the transfer has been made; and
 deleted text end

deleted text begin (6) the metropolitan landfill contingency action trust account established in section
473.845 until $8,100,000 has been transferred into the account. This clause expires after
the entire amount of the transfer has been made.
 deleted text end

(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.

(c) The commissioner of management and budget shall certify the total dollar
amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
education. The commissioner of education shall increase the aid payment percentage and
reduce the property tax shift percentage by these amounts and apply those reductions to
the current fiscal year and thereafter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016.
 new text end

Sec. 2.

new text begin [116J.952] NEW MARKETS GRANT PROGRAM.
 new text end

new text begin Subdivision 1. new text end

new text begin Grant program established. new text end

new text begin The commissioner shall award new
markets grants for qualified low-income community investments as specified under this
section. The commissioner shall adopt rules to establish criteria for determining grant
eligibility.
 new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

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

new text begin (b) "Applicant" means a qualified community development entity as defined in
paragraph (h).
 new text end

new text begin (c) "Commissioner" means the commissioner of employment and economic
development.
 new text end

new text begin (d) "Greater Minnesota" means the area of the state that excludes the metropolitan
area, as defined in section 473.121, subdivision 2.
 new text end

new text begin (e) "Internal Revenue Code" has the meaning given in section 290.01, subdivision 31.
 new text end

new text begin (f) "Qualified active low-income community business" has the meaning given in
section 45D of the Internal Revenue Code. The term does not include:
 new text end

new text begin (1) any trade or business engaged in insurance, banking, lending, lobbying, political
consulting, or leisure; or
 new text end

new text begin (2) any trade or business activity consisting of the operation of any private or
commercial golf course, country club, suntan facility, hot tub facility, massage parlor, race
track, or other facility used for gambling, or any store the principal business of which is
the sale of alcoholic beverages for consumption off premises.
 new text end

new text begin (g) "Low-income communities" as defined in section 45D of the Internal Revenue
Code and applied to any term or requirement used in this section or an incorporated
provision of federal law includes the area of any home rule charter or statutory city that:
 new text end

new text begin (1) is located in greater Minnesota;
 new text end

new text begin (2) has a population, as defined in section 477A.011, subdivision 3, of 500 or
more; and
 new text end

new text begin (3) has net tax capacity of property, classified as class 3 under section 273.13, of
less than $500 per capita for property taxes assessed in 2015, payable in 2016, including
the city's distribution net tax capacity and excluding its contribution net tax capacity
under chapter 276A.
 new text end

new text begin (h) "Qualified community development entity" has the meaning given in section
45D of the Internal Revenue Code, provided that the entity has direct lending experience
serving businesses in disadvantaged communities in the state and a primary mission of
economic development.
 new text end

new text begin (i) "Qualified low-income community investment" means any capital or equity
investment in, or loan to, any qualified active low-income community business.
 new text end

new text begin Subd. 3. new text end

new text begin Grant awards. new text end

new text begin The commissioner shall award grants to qualified
community development entities based on a competitive review of applications received
by the commissioner using criteria established in subdivision 4.
new text end

new text begin Subd. 4. new text end

new text begin Application. new text end

new text begin (a) The commissioner shall develop an application form
requiring information necessary to evaluate the benefits to Minnesota from awarding
the grants.
 new text end

new text begin (b) Prior to awarding grants to an applicant under this subdivision, the commissioner
shall consider the following:
 new text end

new text begin (1) whether the qualified community development entity has demonstrated
experience providing capital or technical assistance to disadvantaged businesses or
communities in the state;
 new text end

new text begin (2) the extent to which an applicant demonstrates direct experience in asset and risk
management and in fulfilling government compliance requirements;
 new text end

new text begin (3) the extent to which an applicant demonstrates a capitalization strategy that
ensures that the economic benefit of the grant allocation remains in the state;
 new text end

new text begin (4) the extent to which the applicant establishes standards for wages and benefits
exceeding federal poverty guidelines and includes a means by which to monitor and
measure ongoing compliance with those standards;
 new text end

new text begin (5) the financial contributions expected to be made to the project from nonstate
sources; and
 new text end

new text begin (6) any other criteria the commissioner deems necessary.
 new text end

new text begin Subd. 5. new text end

new text begin Annual reporting by community development entities. new text end

new text begin A community
development entity that has been awarded a grant must submit an annual report to the
commissioner within 180 days after the end of the fiscal year. The report must include
information on investments made in the preceding year, including but not limited to the
following:
 new text end

new text begin (1) the types of industries, identified by the North American Industry Classification
System Code, in which a qualified low-income community investment was made;
 new text end

new text begin (2) the names of the counties in which the qualified active low-income community
businesses are located which received qualified low-income community investments;
 new text end

new text begin (3) the number of jobs created and retained by qualified active low-income
community businesses receiving qualified low-income community investments, including
verification that the average wages and benefits paid to full-time employees, based on an
hourly wage for a 40-hour work week, meet or exceed 105 percent of the federal poverty
income guidelines for a family of four; and
 new text end

new text begin (4) other information and documentation required by the commissioner to verify
continued certification as a qualified community development entity under United States
Code, title 26, section 45D.
 new text end

new text begin Subd. 6. new text end

new text begin Application fees; fund created. new text end

new text begin The qualified community development
entity must submit a nonrefundable application fee at the time the application is submitted
equal to the amount published in the Minnesota new markets grant program application.
The commissioner may allow up to 25 percent of the fee to be submitted up to 180 days
following the grant award and up to 25 percent of the fee to be submitted up to 270 days
following the grant award. Application fees are deposited in the new markets grant
program administration account in the special revenue fund.
 new text end

new text begin Subd. 7. new text end

new text begin Administrative fees. new text end

new text begin Upon the issuance of a qualified low-income
community investment by a qualified community development entity, an administrative
fee in an amount determined by the commissioner and published in the grant agreement
must be deposited in the new markets grant program administration account in the special
revenue fund.
 new text end

new text begin Subd. 8. new text end

new text begin Administrative expenses. new text end

new text begin Amounts in the new markets grant program
administration account are appropriated annually to the commissioner for administrative
expenses related to administering the new markets grant program in this section.
 new text end

new text begin Subd. 9. new text end

new text begin Annual report. new text end

new text begin The commissioner shall annually by January 15, 2018
through 2023, report to the chairs and ranking minority members of the legislative
committees on economic development on the implementation of the grant program,
including an evaluation of the success and economic impact of the program in the state.
The report must include:
 new text end

new text begin (1) the number of women-owned and minority-owned businesses assisted by the
grants;
 new text end

new text begin (2) the number of greater Minnesota-located businesses assisted by the grants and
the amount of that assistance;
 new text end

new text begin (3) the number of metropolitan area-located businesses assisted by the grants and the
amount of that assistance;
 new text end

new text begin (4) the number of jobs created by the grants including the number of women and
minorities obtaining jobs; and
 new text end

new text begin (5) the number of jobs created by the grants located in greater Minnesota and in the
metropolitan area.
 new text end

new text begin Subd. 10. new text end

new text begin Expiration. new text end

new text begin This section expires the earlier of July 1, 2024, or when the
last of the grant funds have been awarded. The commissioner must issue the rules for the
implementation of this section to allow commencement of grant awards by January 1, 2017.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

new text begin [270C.22] TAX TIME SAVINGS GRANT PROGRAM.
 new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Financial capability services" means any of the following:
 new text end

new text begin (1) assistance with opening a savings or transactional account that meets the Federal
Deposit Insurance Corporation's model safe accounts template standards;
 new text end

new text begin (2) assistance with depositing all or part of a tax refund into a savings or transactional
account;
 new text end

new text begin (3) assistance with obtaining and reviewing a consumer report or credit score, as
those terms are defined in United States Code, title 15, section 1681a;
 new text end

new text begin (4) assistance with obtaining and reviewing a banking history report;
 new text end

new text begin (5) financial coaching, or referral to financial coaching services, as provided in
section 256E.35, subdivision 4a;
 new text end

new text begin (6) National Foundation for Credit Counseling certified consumer credit and debt
counseling or referral to these services;
 new text end

new text begin (7) enrollment in a matched or incentivized savings program, including the provision
of matching or incentive funds;
 new text end

new text begin (8) assistance with purchasing federal retirement savings bonds, as described in
Code of Federal Regulations, title 31, part 347, or referral to a certified financial planner,
registered investment adviser, licensed insurance producer or agent, or a registered
securities broker-dealer representative for private sector retirement options; or
 new text end

new text begin (9) assistance with purchasing a Series I United States Savings Bond with all or
part of a tax refund.
 new text end

new text begin (c) "Transactional account" means a traditional demand deposit account or a general
purpose reloadable prepaid card offered by a bank or credit union.
 new text end

new text begin (d) "TCE" means the Tax Counseling for the Elderly program established by the
Internal Revenue Service.
 new text end

new text begin (e) "VITA" means the Volunteer Income Tax Assistance program established by the
Internal Revenue Service.
 new text end

new text begin Subd. 2. new text end

new text begin Creation. new text end

new text begin The commissioner of revenue shall establish a tax time
savings grant program to make grants to one or more nonprofit organizations to fund the
integration of financial capability services into the delivery of taxpayer assistance services
funded by grants under section 270C.21.
 new text end

new text begin Subd. 3. new text end

new text begin Qualified applicant. new text end

new text begin To be eligible to receive a grant under the tax time
savings grant program, an applicant must:
 new text end

new text begin (1) qualify under section 501(c)(3) of the Internal Revenue Code and be registered
with the Internal Revenue Service as part of either the VITA or TCE programs; and
 new text end

new text begin (2) commit to dedicate at least one staff or volunteer position to coordinate financial
capability services at a VITA or TCE program site and to offer VITA or TCE program
participants free assistance with the initiation through completion of:
 new text end

new text begin (i) opening a savings and a transactional account that meet the Federal Deposit
Insurance Corporation's model safe accounts template standards;
 new text end

new text begin (ii) depositing all or part of a tax refund into a savings or transactional account; and
 new text end

new text begin (iii) purchasing a Series I United States Savings Bond with all or part of a tax refund.
 new text end

new text begin Subd. 4. new text end

new text begin Conflict of interest. new text end

new text begin (a) No applicant may receive direct compensation
from a bank, credit union, other financial services provider, or vendor in exchange for the
applicant offering to program participants the products or services of that bank, credit
union, other financial services provider, or vendor.
 new text end

new text begin (b) No applicant may receive funding from a bank, credit union, other financial
services provider, or vendor that is contingent on the applicant offering products or
services of that bank, credit union, other financial services provider, or vendor to program
participants.
 new text end

new text begin (c) An applicant may receive funding from a bank, credit union, other financial
services provider, or vendor that is not in exchange for or contingent upon the applicant
offering products or services of that bank, credit union, other financial services provider,
or vendor to program participants.
 new text end

new text begin Subd. 5. new text end

new text begin Permitted use of grant funds. new text end

new text begin (a) A grant recipient may use grant funds
to dedicate a staff or volunteer position to coordinate financial capability services at a
VITA or TCE site and to offer VITA or TCE program participants free assistance with the
initiation through completion of:
 new text end

new text begin (1) opening a savings and a transactional account that meet the Federal Deposit
Insurance Corporation's model safe accounts template standards;
 new text end

new text begin (2) depositing all or part of a tax refund into a savings or transactional account; and
 new text end

new text begin (3) purchasing a Series I United States Savings Bond with all or part of a tax refund.
 new text end

new text begin (b) A grant recipient who offers all of the financial capability services enumerated
in paragraph (a) may also use grant funds to provide one or more additional financial
capability services to VITA or TCE program participants at no cost to the participant.
 new text end

Sec. 4.

Minnesota Statutes 2014, section 271.08, subdivision 1, is amended to read:


Subdivision 1.

Written order.

The Tax Court, except in Small Claims Division,
shall determine every appeal by written order containing findings of fact and the decision
of the tax court. A memorandum of the grounds of the decision shall be appended. Notice
of the entry of the order and of the substance of the decision shall be mailed to all parties.
A motion for rehearing, which includes a motion for amended findings of fact, conclusions
of law, or a new trial, must be served by the moving party within deleted text begin 15deleted text end new text begin 30new text end days after mailing
of the notice by the court as specified in this subdivision, and the motion must be heard
within deleted text begin 30deleted text end new text begin 60new text end days thereafter, unless the time for hearing is extended by the court within
the deleted text begin 30-daydeleted text end new text begin 60-daynew text end period for good cause shown.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2014, section 271.21, subdivision 2, is amended to read:


Subd. 2.

Jurisdiction.

At the election of the taxpayer, the Small Claims Division
shall have jurisdiction only in the following matters:

(a) cases involving valuation, assessment, or taxation of real or personal property, if:

(i) the issue is a denial of a current year application for the homestead classification
for the taxpayer's property;

(ii) only one parcel is included in the petition, the entire parcel is classified as
homestead class 1a or 1b under section 273.13, and the parcel contains no more than
one dwelling unit;

(iii) the entire property is classified as agricultural homestead class 2a or 1b under
section 273.13; or

(iv) the assessor's estimated market value of the property included in the petition
is less than $300,000; or

(b) any case not involving valuation, assessment, or taxation of real and personal
property in which the amount in controversy does not exceed deleted text begin $5,000deleted text end new text begin $15,000new text end , including
penalty and interest.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2014, section 289A.60, is amended by adding a subdivision
to read:


new text begin Subd. 32. new text end

new text begin Sales suppression. new text end

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

new text begin (1) sells;
 new text end

new text begin (2) transfers;
 new text end

new text begin (3) develops;
 new text end

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

new text begin (5) possesses with the intent to sell or transfer new text end

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

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

new text begin (c) The definitions in section 609.858 apply to this subdivision.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for activities enumerated in
paragraph (a) that occur after July 1, 2016.
 new text end

Sec. 7.

Minnesota Statutes 2014, section 290A.03, subdivision 13, is amended to read:


Subd. 13.

Property taxes payable.

"Property taxes payable" means the property tax
exclusive of special assessments, penalties, and interest payable on a claimant's homestead
after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2,
and any other state paid property tax credits in any calendar year, and after any refund
claimed and allowable under section 290A.04, subdivision 2h, that is first payable in
the year that the property tax is payable. In the case of a claimant who makes ground
lease payments, "property taxes payable" includes the amount of the payments directly
attributable to the property taxes assessed against the parcel on which the house is located.
No apportionment or reduction of the "property taxes payable" shall be required for the
use of a portion of the claimant's homestead for a business purpose if the claimant does
not deduct any business depreciation expenses for the use of a portion of the homesteadnew text begin ,
or does not deduct expenses under section 280A of the Internal Revenue Code for a
business operated in the home,new text end in the determination of federal adjusted gross income. For
homesteads which are manufactured homes as defined in section 273.125, subdivision 8,
and for homesteads which are park trailers taxed as manufactured homes under section
168.012, subdivision 9, "property taxes payable" shall also include 17 percent of the gross
rent paid in the preceding year for the site on which the homestead is located. When
a homestead is owned by two or more persons as joint tenants or tenants in common,
such tenants shall determine between them which tenant may claim the property taxes
payable on the homestead. If they are unable to agree, the matter shall be referred to the
commissioner of revenue whose decision shall be final. Property taxes are considered
payable in the year prescribed by law for payment of the taxes.

In the case of a claim relating to "property taxes payable," the claimant must have
owned and occupied the homestead on January 2 of the year in which the tax is payable
and (i) the property must have been classified as homestead property pursuant to section
273.124, on or before December 15 of the assessment year to which the "property taxes
payable" relate; or (ii) the claimant must provide documentation from the local assessor
that application for homestead classification has been made on or before December 15
of the year in which the "property taxes payable" were payable and that the assessor has
approved the application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refunds based on rent paid after
December 31, 2014, and property taxes payable after December 31, 2015.
 new text end

Sec. 8.

Minnesota Statutes 2014, section 469.169, is amended by adding a subdivision
to read:


new text begin Subd. 20. new text end

new text begin Additional allocation; 2016. new text end

new text begin In addition to the tax reductions in
subdivisions 12 to 19, $3,000,000 is allocated for tax reductions to border city enterprise
zones in cities located on the western border of the state. The commissioner shall allocate
this amount among cities on a per capita basis. Allocations under this subdivision may
be used for tax reductions under sections 469.171, 469.1732, and 469.1734, or for other
offsets of taxes imposed on or remitted by businesses located in the enterprise zone,
but only if the municipality determines that the granting of the tax reduction or offset is
necessary to retain a business within or attract a business to the zone.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016.
 new text end

Sec. 9.

Minnesota Statutes 2014, section 609.5316, subdivision 3, is amended to read:


Subd. 3.

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

Weapons used are contraband and
must be summarily forfeited to the appropriate agency upon conviction of the weapon's
owner or possessor for a controlled substance crime; for any offense of this chapter
or chapter 624, or for a violation of an order for protection under section 518B.01,
subdivision 14. Bullet-resistant vests, as defined in section 609.486, worn or possessed
during the commission or attempted commission of a crime are contraband and must be
summarily forfeited to the appropriate agency upon conviction of the owner or possessor
for a controlled substance crime or for any offense of this chapter. Telephone cloning
paraphernalia used in a violation of section 609.894new text begin , and automated sales suppression
devices, phantom-ware, and other devices containing an automated sales suppression or
phantom-ware device or software used in violation of section 609.858,new text end are contraband and
must be summarily forfeited to the appropriate agency upon a conviction.

Sec. 10.

new text begin [609.858] USE OF AUTOMATED SALES SUPPRESSION DEVICES.
 new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

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

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

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

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

new text begin Subd. 2. new text end

new text begin Felony. new text end

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

new text begin Subd. 3. new text end

new text begin Forfeiture. new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2015, and applies to crimes
committed on or after that date.
 new text end

Sec. 11. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin New markets grant program. new text end

new text begin $30,000,000 in fiscal year 2017 is
appropriated from the general fund to the commissioner of employment and economic
development for the new markets grant program under Minnesota Statutes, section
116J.952. This appropriation is a onetime appropriation and is available until June 30,
2024. The commissioner may award grants of up to $10,000,000 per fiscal year.
 new text end

new text begin Subd. 2. new text end

new text begin Department of Revenue. new text end

new text begin $5,000,000 in fiscal year 2017 is appropriated
from the general fund to the commissioner of revenue for administering this act. The
funding base for this appropriation in fiscal year 2018 and thereafter is $2,000,000.
 new text end

new text begin Subd. 3. new text end

new text begin Tax time savings grant program. new text end

new text begin (a) $400,000 is appropriated in fiscal
year 2017 from the general fund to the commissioner of revenue to make grants under the
tax time savings grant program under Minnesota Statutes, section 270C.22. Of this amount,
up to five percent may be used for the administration of the tax time savings grant program.
 new text end

new text begin (b) The base funding for the grant program authorized under paragraph (a) is
$400,000 each year.
 new text end

new text begin Subd. 4. new text end

new text begin Taxpayer assistance grants. new text end

new text begin (a) $400,000 is appropriated in fiscal year
2017 from the general fund to the commissioner of revenue for the provision of taxpayer
assistance grants under Minnesota Statutes, section 270C.21, in addition to the current
base funding for the program. Of the amount appropriated under this paragraph and the
current base funding for the provision of taxpayer assistance grants, up to five percent may
be used for the administration of the taxpayer assistance grants program.
 new text end

new text begin (b) Beginning in fiscal year 2018, the total base funding for the program under
paragraph (a) is $800,000 each year. This amount includes the base funding of $400,000
each year established in Laws 2015, chapter 77, article 1, section 14, subdivision 2,
paragraph (a).
 new text end

new text begin Subd. 5. new text end

new text begin Local government grants. new text end

new text begin (a) The following amounts are appropriated in
fiscal year 2016 only from the general fund to the commissioner of revenue for grants that
shall be paid by June 30, 2016, and allocated as follows:
 new text end

new text begin (1) $1,200,000 to the city of Madelia;
 new text end

new text begin (2) $465,000 to the city of Hibbing; and
 new text end

new text begin (3) $52,288 to Stearns County.
 new text end

new text begin (b) The following amounts are appropriated in fiscal year 2017 only from the
general fund to the commissioner of revenue for grants that shall be paid by June 30,
2017, and allocated as follows:
 new text end

new text begin (1) $2,000,000 to Mahnomen County. Of this amount, $1,000,000 must be used
by the county for the Mahnomen Health Center, and $1,000,000 must be paid from the
county to the White Earth Band of Ojibwe;
 new text end

new text begin (2) $1,130,000 to Hennepin County. Of this amount, $730,000 must be used for the
North Branch Library EMERGE Career and Technology Center, and $400,000 must be
used for the Cedar Riverside Opportunity Center;
 new text end

new text begin (3) $1,000,000 to the city of Mahnomen; and
 new text end

new text begin (4) $150,000 to the city of Lilydale.
 new text end

new text begin (c) All of the appropriations under this subdivision are onetime and are not added
to the base budget.
 new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 12

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

Section 1.

Minnesota Statutes 2014, section 289A.08, subdivision 11, is amended to
read:


Subd. 11.

Information included in income tax return.

(a) The return must state:

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2014, section 289A.08, subdivision 16, is amended to read:


Subd. 16.

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
 new text end

Sec. 3.

Minnesota Statutes 2014, section 289A.09, subdivision 2, is amended to read:


Subd. 2.

Withholding statement.

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

(1) name of the person;

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for statements required to be sent
to the commissioner after December 31, 2016, except that the date change in paragraph
(d) is effective for wages paid after December 31, 2015.
 new text end

Sec. 4.

Minnesota Statutes 2014, section 289A.12, subdivision 14, is amended to read:


Subd. 14.

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

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

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

(1) "Exempt-interest dividends" mean exempt-interest dividends as defined in
section 852(b)(5) of the Internal Revenue Code, but does not include the portion of
exempt-interest dividends that are not required to be added to federal taxable income
under section 290.01, subdivision 19a, clause (1)(ii).

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reports required to be filed after
December 31, 2016.
 new text end

Sec. 5.

Minnesota Statutes 2014, section 289A.18, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
 new text end

Sec. 6.

Minnesota Statutes 2014, section 289A.20, subdivision 2, is amended to read:


Subd. 2.

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
 new text end

Sec. 7.

Minnesota Statutes 2014, section 289A.31, subdivision 1, is amended to read:


Subdivision 1.

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

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

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

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

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

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

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

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

(c) The deleted text begin taxdeleted text end new text begin taxesnew text end imposed under deleted text begin sectiondeleted text end new text begin sections 289A.35 andnew text end 290.0922 on
partnerships deleted text begin isdeleted text end new text begin arenew text end the joint and several liability of the partnership and the general partners.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2014, section 289A.35, is amended to read:


289A.35 ASSESSMENTS ON RETURNS.

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2014, section 289A.60, subdivision 28, is amended to read:


Subd. 28.

Preparer identification number.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
 new text end

Sec. 10.

Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:


Subd. 19b.

Subtractions from federal taxable income.

For individuals, estates,
and trusts, there shall be subtracted from federal taxable income:

(1) net interest income on obligations of any authority, commission, or
instrumentality of the United States to the extent includable in taxable income for federal
income tax purposes but exempt from state income tax under the laws of the United States;

(2) if included in federal taxable income, the amount of any overpayment of income
tax to Minnesota or to any other state, for any previous taxable year, whether the amount
is received as a refund or as a credit to another taxable year's income tax liability;

(3) the amount paid to others, less the amount used to claim the credit allowed under
section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
transportation of each qualifying child in attending an elementary or secondary school
situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
resident of this state may legally fulfill the state's compulsory attendance laws, which
is not operated for profit, and which adheres to the provisions of the Civil Rights Act
of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
"textbooks" includes books and other instructional materials and equipment purchased
or leased for use in elementary and secondary schools in teaching only those subjects
legally and commonly taught in public elementary and secondary schools in this state.
Equipment expenses qualifying for deduction includes expenses as defined and limited in
section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
books and materials used in the teaching of religious tenets, doctrines, or worship, the
purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
or materials for, or transportation to, extracurricular activities including sporting events,
musical or dramatic events, speech activities, driver's education, or similar programs. No
deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
the qualifying child's vehicle to provide such transportation for a qualifying child. For
purposes of the subtraction provided by this clause, "qualifying child" has the meaning
given in section 32(c)(3) of the Internal Revenue Code;

(4) income as provided under section 290.0802;

(5) to the extent included in federal adjusted gross income, income realized on
disposition of property exempt from tax under section 290.491;

(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
of the Internal Revenue Code in determining federal taxable income by an individual
who does not itemize deductions for federal income tax purposes for the taxable year, an
amount equal to 50 percent of the excess of charitable contributions over $500 allowable
as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
under the provisions of Public Law 109-1 and Public Law 111-126;

(7) for individuals who are allowed a federal foreign tax credit for taxes that do not
qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
of subnational foreign taxes for the taxable year, but not to exceed the total subnational
foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
"federal foreign tax credit" means the credit allowed under section 27 of the Internal
Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
the extent they exceed the federal foreign tax credit;

(8) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (7), or 19c, clause deleted text begin (12)deleted text end new text begin (11)new text end , in the case of
a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
clause deleted text begin (12)deleted text end new text begin (11)new text end , in the case of a shareholder of an S corporation, minus the positive value
of any net operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition. The resulting delayed depreciation cannot be less than zero;

(9) job opportunity building zone income as provided under section 469.316;

(10) to the extent included in federal taxable income, the amount of compensation
paid to members of the Minnesota National Guard or other reserve components of the
United States military for active service, including compensation for services performed
under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
service" means (i) state active service as defined in section 190.05, subdivision 5a, clause
(1); or (ii) federally funded state active service as defined in section 190.05, subdivision
5b, and "active service" includes service performed in accordance with section 190.08,
subdivision 3;

(11) to the extent included in federal taxable income, the amount of compensation
paid to Minnesota residents who are members of the armed forces of the United States
or United Nations for active duty performed under United States Code, title 10; or the
authority of the United Nations;

(12) an amount, not to exceed $10,000, equal to qualified expenses related to a
qualified donor's donation, while living, of one or more of the qualified donor's organs
to another person for human organ transplantation. For purposes of this clause, "organ"
means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
"human organ transplantation" means the medical procedure by which transfer of a human
organ is made from the body of one person to the body of another person; "qualified
expenses" means unreimbursed expenses for both the individual and the qualified donor
for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
may be subtracted under this clause only once; and "qualified donor" means the individual
or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
individual may claim the subtraction in this clause for each instance of organ donation for
transplantation during the taxable year in which the qualified expenses occur;

(13) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (8), or 19c, clause deleted text begin (13)deleted text end new text begin (12)new text end , in the case
of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of
the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause deleted text begin (13)
deleted text end new text begin (12)new text end , in the case of a shareholder of a corporation that is an S corporation, minus the
positive value of any net operating loss under section 172 of the Internal Revenue Code
generated for the tax year of the addition. If the net operating loss exceeds the addition for
the tax year, a subtraction is not allowed under this clause;

(14) to the extent included in the federal taxable income of a nonresident of
Minnesota, compensation paid to a service member as defined in United States Code, title
10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
Act, Public Law 108-189, section 101(2);

(15) to the extent included in federal taxable income, the amount of national service
educational awards received from the National Service Trust under United States Code,
title 42, sections 12601 to 12604, for service in an approved Americorps National Service
program;

(16) to the extent included in federal taxable income, discharge of indebtedness
income resulting from reacquisition of business indebtedness included in federal taxable
income under section 108(i) of the Internal Revenue Code. This subtraction applies only
to the extent that the income was included in net income in a prior year as a result of the
addition under subdivision 19a, clause (13);

(17) the amount of the net operating loss allowed under section 290.095, subdivision
11, paragraph (c);

(18) the amount of expenses not allowed for federal income tax purposes due
to claiming the railroad track maintenance credit under section 45G(a) of the Internal
Revenue Code;

(19) the amount of the limitation on itemized deductions under section 68(b) of the
Internal Revenue Code;

(20) the amount of the phaseout of personal exemptions under section 151(d) of
the Internal Revenue Code; and

(21) to the extent included in federal taxable income, the amount of qualified
transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal
Revenue Code. The subtraction is limited to the lesser of the amount of qualified
transportation fringe benefits received in excess of the limitations under section
132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the
maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal
Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A)
of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read:


Subd. 19c.

Corporations; additions to federal taxable income.

For corporations,
there shall be added to federal taxable income:

(1) the amount of any deduction taken for federal income tax purposes for income,
excise, or franchise taxes based on net income or related minimum taxes, including but not
limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota,
another state, a political subdivision of another state, the District of Columbia, or any
foreign country or possession of the United States;

(2) interest not subject to federal tax upon obligations of: the United States, its
possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
state, any of its political or governmental subdivisions, any of its municipalities, or any
of its governmental agencies or instrumentalities; the District of Columbia; or Indian
tribal governments;

(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
Revenue Code;

(4) the amount of any net operating loss deduction taken for federal income tax
purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
deduction under section 810 of the Internal Revenue Code;

(5) the amount of any special deductions taken for federal income tax purposes
under sections 241 to 247 and 965 of the Internal Revenue Code;

(6) losses from the business of mining, as defined in section 290.05, subdivision 1,
clause (a), that are not subject to Minnesota income tax;

(7) the amount of any capital losses deducted for federal income tax purposes under
sections 1211 and 1212 of the Internal Revenue Code;

(8) the amount of percentage depletion deducted under sections 611 through 614 and
291 of the Internal Revenue Code;

deleted text begin (9) for certified pollution control facilities placed in service in a taxable year
beginning before December 31, 1986, and for which amortization deductions were elected
under section 169 of the Internal Revenue Code of 1954, as amended through December
31, 1985, the amount of the amortization deduction allowed in computing federal taxable
income for those facilities;
 deleted text end

deleted text begin (10)deleted text end new text begin (9)new text end the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;

deleted text begin (11)deleted text end new text begin (10)new text end any increase in subpart F income, as defined in section 952(a) of the
Internal Revenue Code, for the taxable year when subpart F income is calculated without
regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;

deleted text begin (12)deleted text end new text begin (11)new text end 80 percent of the depreciation deduction allowed under section
168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if
the taxpayer has an activity that in the taxable year generates a deduction for depreciation
under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable
year that the taxpayer is not allowed to claim for the taxable year, "the depreciation
allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess
of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A)
over the amount of the loss from the activity that is not allowed in the taxable year. In
succeeding taxable years when the losses not allowed in the taxable year are allowed, the
depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;

deleted text begin (13)deleted text end new text begin (12)new text end 80 percent of the amount by which the deduction allowed by section 179 of
the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
Revenue Code of 1986, as amended through December 31, 2003;

deleted text begin (14)deleted text end new text begin (13)new text end to the extent deducted in computing federal taxable income, the amount of
the deduction allowable under section 199 of the Internal Revenue Code;

deleted text begin (15)deleted text end new text begin (14)new text end the amount of expenses disallowed under section 290.10, subdivision 2; and

deleted text begin (16)deleted text end new text begin (15)new text end discharge of indebtedness income resulting from reacquisition of business
indebtedness and deferred under section 108(i) of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2014, section 290.01, subdivision 19d, is amended to read:


Subd. 19d.

Corporations; modifications decreasing federal taxable income.

For
corporations, there shall be subtracted from federal taxable income after the increases
provided in subdivision 19c:

(1) the amount of foreign dividend gross-up added to gross income for federal
income tax purposes under section 78 of the Internal Revenue Code;

(2) the amount of salary expense not allowed for federal income tax purposes due to
claiming the work opportunity credit under section 51 of the Internal Revenue Code;

(3) any dividend (not including any distribution in liquidation) paid within the
taxable year by a national or state bank to the United States, or to any instrumentality of
the United States exempt from federal income taxes, on the preferred stock of the bank
owned by the United States or the instrumentality;

(4) the deduction for capital losses pursuant to sections 1211 and 1212 of the
Internal Revenue Code, except that:

(i) for capital losses incurred in taxable years beginning after December 31, 1986,
capital loss carrybacks shall not be allowed;

(ii) for capital losses incurred in taxable years beginning after December 31, 1986,
a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
allowed;

(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
capital loss carryback to each of the three taxable years preceding the loss year, subject to
the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and

(iv) for capital losses incurred in taxable years beginning before January 1, 1987,
a capital loss carryover to each of the five taxable years succeeding the loss year to the
extent such loss was not used in a prior taxable year and subject to the provisions of
Minnesota Statutes 1986, section 290.16, shall be allowed;

(5) an amount for interest and expenses relating to income not taxable for federal
income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
291 of the Internal Revenue Code in computing federal taxable income;

(6) in the case of mines, oil and gas wells, other natural deposits, and timber for
which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a
reasonable allowance for depletion based on actual cost. In the case of leases the deduction
must be apportioned between the lessor and lessee in accordance with rules prescribed
by the commissioner. In the case of property held in trust, the allowable deduction must
be apportioned between the income beneficiaries and the trustee in accordance with the
pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
of the trust's income allocable to each;

deleted text begin (7) for certified pollution control facilities placed in service in a taxable year
beginning before December 31, 1986, and for which amortization deductions were elected
under section 169 of the Internal Revenue Code of 1954, as amended through December
31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
1986, section 290.09, subdivision 7;
 deleted text end

deleted text begin (8)deleted text end new text begin (7)new text end amounts included in federal taxable income that are due to refunds of
income, excise, or franchise taxes based on net income or related minimum taxes paid
by the corporation to Minnesota, another state, a political subdivision of another state,
the District of Columbia, or a foreign country or possession of the United States to the
extent that the taxes were added to federal taxable income under subdivision 19c, clause
(1), in a prior taxable year;

deleted text begin (9)deleted text end new text begin (8)new text end income or gains from the business of mining as defined in section 290.05,
subdivision 1, clause (a), that are not subject to Minnesota franchise tax;

deleted text begin (10)deleted text end new text begin (9)new text end the amount of disability access expenditures in the taxable year which are not
allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;

deleted text begin (11)deleted text end new text begin (10)new text end the amount of qualified research expenses not allowed for federal income
tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent
that the amount exceeds the amount of the credit allowed under section 290.068;

deleted text begin (12)deleted text end new text begin (11)new text end the amount of salary expenses not allowed for federal income tax purposes
due to claiming the Indian employment credit under section 45A(a) of the Internal
Revenue Code;

deleted text begin (13)deleted text end new text begin (12)new text end any decrease in subpart F income, as defined in section 952(a) of the
Internal Revenue Code, for the taxable year when subpart F income is calculated without
regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;

deleted text begin (14)deleted text end new text begin (13)new text end in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19c, clause deleted text begin (12)deleted text end new text begin (11)new text end , an amount equal to one-fifth
of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the
amount of the addition made by the taxpayer under subdivision 19c, clause deleted text begin (12)deleted text end new text begin (11)new text end . The
resulting delayed depreciation cannot be less than zero;

deleted text begin (15)deleted text end new text begin (14)new text end in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19c, clause deleted text begin (13)deleted text end new text begin (12)new text end , an amount equal to one-fifth
of the amount of the addition;

deleted text begin (16)deleted text end new text begin (15)new text end to the extent included in federal taxable income, discharge of indebtedness
income resulting from reacquisition of business indebtedness included in federal taxable
income under section 108(i) of the Internal Revenue Code. This subtraction applies only
to the extent that the income was included in net income in a prior year as a result of the
addition under subdivision 19c, clause deleted text begin (16)deleted text end new text begin (15)new text end ; and

deleted text begin (17)deleted text end new text begin (16)new text end the amount of expenses not allowed for federal income tax purposes due
to claiming the railroad track maintenance credit under section 45G(a) of the Internal
Revenue Code.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2014, section 290.0672, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2014, section 290.068, subdivision 2, is amended to read:


Subd. 2.

Definitions.

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2014, section 290.091, subdivision 3, is amended to read:


Subd. 3.

Exemption amount.

(a) For purposes of computing the alternative
minimum tax, the exemption amount is, for taxable years beginning after December 31,
2005, $60,000 for married couples filing joint returns, $30,000 for married individuals
filing separate returns, estates, and trusts, and $45,000 for unmarried individuals.

(b) The exemption amount determined under this subdivision is subject to the phase
out under section 55(d)(3) of the Internal Revenue Code, except that alternative minimum
taxable income as determined under this section must be substituted in the computation of
the phase out.

(c) For taxable years beginning after December 31, 2006, the exemption amount
under paragraph (a)deleted text begin , clause (2),deleted text end must be adjusted for inflation. The commissioner shall
adjust the exemption amount by the percentage determined pursuant to the provisions of
section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) the word "2005"
shall be substituted for the word "1992." For 2007, the commissioner shall then determine
the percent change from the 12 months ending on August 31, 2005, to the 12 months
ending on August 31, 2006, and in each subsequent year, from the 12 months ending on
August 31, 2005, to the 12 months ending on August 31 of the year preceding the taxable
year. The exemption amount as adjusted must be rounded to the nearest $10. If the amount
ends in $5, it must be rounded up to the nearest $10 amount. The determination of the
commissioner under this subdivision is not a rule under the Administrative Procedure Act.

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2014, section 290.0921, subdivision 3, is amended to read:


Subd. 3.

Alternative minimum taxable income.

"Alternative minimum taxable
income" is Minnesota net income as defined in section 290.01, subdivision 19, and
includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e),
(f), and (h) of the Internal Revenue Code. If a corporation files a separate company
Minnesota tax return, the minimum tax must be computed on a separate company basis.
If a corporation is part of a tax group filing a unitary return, the minimum tax must be
computed on a unitary basis. The following adjustments must be made.

(1) The portion of the depreciation deduction allowed for federal income tax
purposes under section 168(k) of the Internal Revenue Code that is required as an addition
under section 290.01, subdivision 19c, clause deleted text begin (12)deleted text end new text begin (11)new text end , is disallowed in determining
alternative minimum taxable income.

(2) The subtraction for depreciation allowed under section 290.01, subdivision
19d, clause deleted text begin (14)deleted text end new text begin (13)new text end , is allowed as a depreciation deduction in determining alternative
minimum taxable income.

(3) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d)
of the Internal Revenue Code does not apply.

(4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal
Revenue Code does not apply.

(5) The tax preference for depletion under section 57(a)(1) of the Internal Revenue
Code does not apply.

(6) The tax preference for tax exempt interest under section 57(a)(5) of the Internal
Revenue Code does not apply.

(7) The tax preference for charitable contributions of appreciated property under
section 57(a)(6) of the Internal Revenue Code does not apply.

(8) For purposes of calculating the adjustment for adjusted current earnings in
section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable
income" as it is used in section 56(g) of the Internal Revenue Code, means alternative
minimum taxable income as defined in this subdivision, determined without regard to the
adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.

(9) For purposes of determining the amount of adjusted current earnings under
section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section
56(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend
gross-up subtracted as provided in section 290.01, subdivision 19d, clause (1), or (ii) the
amount of refunds of income, excise, or franchise taxes subtracted as provided in section
290.01, subdivision 19d, clause deleted text begin (8)deleted text end new text begin (7)new text end .

(10) Alternative minimum taxable income excludes the income from operating in a
job opportunity building zone as provided under section 469.317.

Items of tax preference must not be reduced below zero as a result of the
modifications in this subdivision.

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2014, section 290.17, subdivision 2, is amended to read:


Subd. 2.

Income not derived from conduct of a trade or business.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2014, section 290.31, subdivision 1, is amended to read:


Subdivision 1.

Partners, not partnership, subject to tax.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Minnesota Statutes 2014, section 290A.19, is amended to read:


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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for certificates of rent paid furnished
to a renter for rent paid after December 31, 2015.
 new text end

Sec. 20.

Minnesota Statutes 2014, section 291.016, subdivision 2, is amended to read:


Subd. 2.

Additions.

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

Minnesota Statutes 2014, section 291.016, subdivision 3, is amended to read:


Subd. 3.

Subtraction.

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Minnesota Statutes 2014, section 291.03, subdivision 9, is amended to read:


Subd. 9.

Qualified small business property.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

Minnesota Statutes 2014, section 291.03, subdivision 11, is amended to read:


Subd. 11.

Recapture tax.

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 24.

Minnesota Statutes 2014, section 291.031, is amended to read:


291.031 CREDIT.

(a) The estate of a nonresident decedent that is subject to tax under this chapter on
the value of Minnesota situs property held in a pass-through entity is allowed a credit
against the tax due under section 291.03 equal to the lesser of:

(1) the amount of estate or inheritance tax paid to another state that is attributable to
the Minnesota situs property held in the pass-through entity; or

(2) the amount of tax deleted text begin paid under this sectiondeleted text end new text begin due under section 291.03new text end attributable to
the Minnesota situs property held in the pass-through entity.

(b) The amount of tax attributable to the Minnesota situs property held in the
pass-through entity must be determined by the increase in the estate or inheritance tax that
results from including the market value of the property in the estate or treating the value
as a taxable inheritance to the recipient of the property.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after December 31, 2013.
 new text end

Sec. 25. new text begin REPEALER.
new text end

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

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

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective for taxable years beginning after
December 31, 2015, except that notifications from the Department of Revenue to
employers regarding eligibility to file an annual return for taxes withheld in calendar year
2016 remain in force. Paragraph (b) is effective the day following final enactment.
 new text end

ARTICLE 13

DEPARTMENT POLICY AND TECHNICAL PROVISIONS; SPECIAL
TAXES AND SALES TAXES

Section 1.

Minnesota Statutes 2014, section 69.021, subdivision 5, is amended to read:


Subd. 5.

Calculation of state aid.

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2014, section 289A.38, subdivision 6, is amended to read:


Subd. 6.

Omission in excess of 25 percent.

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2014, section 290.0922, subdivision 2, is amended to read:


Subd. 2.

Exemptions.

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

(1) corporations exempt from tax under section 290.05;

(2) real estate investment trusts;

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2014, section 295.54, subdivision 2, is amended to read:


Subd. 2.

Pharmacy refund.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for qualifying legend drugs delivered
outside Minnesota after December 31, 2015.
 new text end

Sec. 5.

Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision
to read:


new text begin Subd. 9a. new text end

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2014, section 296A.01, subdivision 33, is amended to read:


Subd. 33.

Motor fuel.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2014, section 296A.01, subdivision 42, is amended to read:


Subd. 42.

Petroleum products.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2014, section 296A.07, subdivision 1, is amended to read:


Subdivision 1.

Tax imposed.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2014, section 297A.61, subdivision 10, is amended to read:


Subd. 10.

Tangible personal property.

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

(b) Tangible personal property does not include:

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2014, section 297A.82, subdivision 4, is amended to read:


Subd. 4.

Exemptions.

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
December 31, 2016.
 new text end

Sec. 11.

Minnesota Statutes 2014, section 297A.82, subdivision 4a, is amended to read:


Subd. 4a.

Deposit in state airports fund.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2014, section 297E.02, subdivision 7, is amended to read:


Subd. 7.

Untaxed gambling product.

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

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

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

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

new text begin (e) Notwithstanding any law to the contrary, neither the commissioner nor a public
employee may reveal facts contained in a tax return filed with the commissioner of
revenue as required by this subdivision, nor can any information contained in the report or
return be used against the tax obligor in any criminal proceeding, unless independently
obtained, except in connection with a proceeding involving taxes due under this section,
or as provided in section 270C.055, subdivision 1. However, this paragraph does not
prohibit the commissioner from publishing statistics that do not disclose the identity of
tax obligors or the contents of particular returns or reports. Any person violating this
paragraph is guilty of a gross misdemeanor.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for games played or purchased after
June 30, 2016.
 new text end

Sec. 13.

Minnesota Statutes 2014, section 297H.06, subdivision 2, is amended to read:


Subd. 2.

Materials.

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

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

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

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

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

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

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

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

(i) generators separate materials at the source;

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

(A) maximizes the quality of the product;

(B) minimizes the toxicity and quantity of deleted text begin residualsdeleted text end new text begin rejectsnew text end ; and

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

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

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

(v) the final product is accepted for use;

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2014, section 297I.05, subdivision 2, is amended to read:


Subd. 2.

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2014, section 297I.10, subdivision 1, is amended to read:


Subdivision 1.

Cities of the first class.

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2014, section 297I.10, subdivision 3, is amended to read:


Subd. 3.

Appropriation.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2014, section 298.01, subdivision 3b, is amended to read:


Subd. 3b.

Deductions.

(a) For purposes of determining taxable income under
subdivision 3, the deductions from gross income include only those expenses necessary
to convert raw ores to marketable quality. Such expenses include costs associated with
refinement but do not include expenses such as transportation, stockpiling, marketing, or
marine insurance that are incurred after marketable ores are produced, unless the expenses
are included in gross income. The allowable deductions from a mine or plant that mines
and produces more than one mineral, metal, or energy resource must be determined
separately for the purposes of computing the deduction in section 290.01, subdivision 19c,
clause (8). These deductions may be combined on one occupation tax return to arrive at
the deduction from gross income for all production.

(b) The provisions of section 290.01, subdivisions 19c, clauses (6) and (8), and 19d,
clauses (6) and deleted text begin (9)deleted text end new text begin (8)new text end , are not used to determine taxable income.

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2014, section 298.01, subdivision 4c, is amended to read:


Subd. 4c.

Special deductions; net operating loss.

deleted text begin (a)deleted text end For purposes of determining
taxable income under subdivision 4, the provisions of section 290.01, subdivisions 19c,
clauses (6) and (8), and 19d, clauses (6) and deleted text begin (9)deleted text end new text begin (8)new text end , are not used to determine taxable
income.

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

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 14

DEPARTMENT OF REVENUE TECHNICAL AND POLICY;
PROPERTY TAX PROVISIONS

Section 1.

Minnesota Statutes 2014, section 13.51, subdivision 2, is amended to read:


Subd. 2.

Income property assessment data.

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

(a) detailed income and expense figures;

(b) average vacancy factors;

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

(d) anticipated income and expenses;

(e) projected vacancy factors; and

(f) lease information.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2014, section 270.071, subdivision 2, is amended to read:


Subd. 2.

Air commerce.

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2017 and
thereafter.
 new text end

Sec. 3.

Minnesota Statutes 2014, section 270.071, subdivision 7, is amended to read:


Subd. 7.

Flight property.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2017 and
thereafter.
 new text end

Sec. 4.

Minnesota Statutes 2014, section 270.071, subdivision 8, is amended to read:


Subd. 8.

Person.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2017 and
thereafter.
 new text end

Sec. 5.

Minnesota Statutes 2014, section 270.071, is amended by adding a subdivision
to read:


new text begin Subd. 10. new text end

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2017 and
thereafter.
 new text end

Sec. 6.

Minnesota Statutes 2014, section 270.072, subdivision 2, is amended to read:


Subd. 2.

Assessment of flight property.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2017 and
thereafter.
 new text end

Sec. 7.

Minnesota Statutes 2014, section 270.072, subdivision 3, is amended to read:


Subd. 3.

Report by airline company.

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

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

new text begin EFFECTIVE DATE. new text end

new text begin The amendment to paragraph (a) is effective for reports
filed in 2017 and thereafter. The amendment adding paragraph (b) is effective the day
following final enactment.
 new text end

Sec. 8.

Minnesota Statutes 2014, section 270.072, is amended by adding a subdivision
to read:


new text begin Subd. 3a. new text end

new text begin Commissioner filed reports. new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2017 and
thereafter.
 new text end

Sec. 9.

Minnesota Statutes 2014, section 270.12, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin Reassessment orders. new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2017 and
thereafter.
 new text end

Sec. 10.

Minnesota Statutes 2014, section 270C.89, subdivision 1, is amended to read:


Subdivision 1.

Initial report.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:


Subd. 9.

Personal property; exceptions.

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

The following personal property shall be taxable:

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

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

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

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

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

(f) flight property as defined in section 270.071.

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2014, section 272.029, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) For the purposes of this section, the term:

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

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

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

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

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

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

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

(3) under common ownership.

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reports filed in 2017 and thereafter.
 new text end

Sec. 13.

Minnesota Statutes 2014, section 272.029, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Extension. new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reports filed in 2017 and thereafter.
 new text end

Sec. 14.

Minnesota Statutes 2014, section 273.032, is amended to read:


273.032 MARKET VALUE DEFINITION.

(a) Unless otherwise provided, for the purpose of determining any property tax
levy limitation based on market value or any limit on net debt, the issuance of bonds,
certificates of indebtedness, or capital notes based on market value, any qualification to
receive state aid based on market value, or any state aid amount based on market value,
the terms "market value," "estimated market value," and "market valuation," whether
equalized or unequalized, mean the estimated market value of taxable property within the
local unit of government before any of the following or similar adjustments for:

(1) the market value exclusions under:

(i) section 273.11, subdivisions 14a and 14c (vacant platted land);

(ii) section 273.11, subdivision 16 (certain improvements to homestead property);

(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business
properties);

(iv) section 273.11, subdivision 21 (homestead property damaged by mold);

deleted text begin (v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);
 deleted text end

deleted text begin (vi)deleted text end new text begin (v)new text end section 273.13, subdivision 34 (homestead of a disabled veteran or family
caregiver); or

deleted text begin (vii)deleted text end new text begin (vi)new text end section 273.13, subdivision 35 (homestead market value exclusion); or

(2) the deferment of value under:

(i) the Minnesota Agricultural Property Tax Law, section 273.111;

(ii) the Aggregate Resource Preservation Law, section 273.1115;

(iii) the Minnesota Open Space Property Tax Law, section 273.112;

(iv) the rural preserves property tax program, section 273.114; or

(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or

(3) the adjustments to tax capacity for:

(i) tax increment financing under sections 469.174 to 469.1794;

(ii) fiscal disparities under chapter 276A or 473F; or

(iii) powerline credit under section 273.425.

(b) Estimated market value under paragraph (a) also includes the market value
of tax-exempt property if the applicable law specifically provides that the limitation,
qualification, or aid calculation includes tax-exempt property.

(c) Unless otherwise provided, "market value," "estimated market value," and
"market valuation" for purposes of property tax levy limitations and calculation of state
aid, refer to the estimated market value for the previous assessment year and for purposes
of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital notes
refer to the estimated market value as last finally equalized.

(d) For purposes of a provision of a home rule charter or of any special law that is not
codified in the statutes and that imposes a levy limitation based on market value or any limit
on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market
value, the terms "market value," "taxable market value," and "market valuation," whether
equalized or unequalized, mean "estimated market value" as defined in paragraph (a).

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2014, section 273.061, subdivision 7, is amended to read:


Subd. 7.

Division of duties between local and county assessor.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2017 and
thereafter.
 new text end

Sec. 16.

Minnesota Statutes 2014, section 273.08, is amended to read:


273.08 ASSESSOR'S DUTIES.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2017 and
thereafter.
 new text end

Sec. 17.

Minnesota Statutes 2014, section 273.121, is amended by adding a subdivision
to read:


new text begin Subd. 3. new text end

new text begin Compliance. new text end

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for valuation notices sent in 2017
and thereafter.
 new text end

Sec. 18.

Minnesota Statutes 2014, section 273.13, subdivision 22, is amended to read:


Subd. 22.

Class 1.

(a) Except as provided in subdivision 23 and in paragraphs (b)
and (c), real estate which is residential and used for homestead purposes is class 1a. In the
case of a duplex or triplex in which one of the units is used for homestead purposes, the
entire property is deemed to be used for homestead purposes. The market value of class 1a
property must be determined based upon the value of the house, garage, and land.

The first $500,000 of market value of class 1a property has a net classification rate
of one percent of its market value; and the market value of class 1a property that exceeds
$500,000 has a classification rate of 1.25 percent of its market value.

(b) Class 1b property includes homestead real estate or homestead manufactured
homes used for the purposes of a homestead by:

(1) any person who is blind as defined in section 256D.35, or the blind person and
the blind person's spouse;

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

(3) the surviving spouse of a permanently and totally disabled veteran homesteading
a property classified under this paragraph for taxes payable in 2008.

Property is classified and assessed under clause (2) only if the government agency or
income-providing source certifies, upon the request of the homestead occupant, that the
homestead occupant satisfies the disability requirements of this paragraph, and that the
property is not eligible for the valuation exclusion under subdivision 34.

Property is classified and assessed under paragraph (b) only if the commissioner
of revenue or the county assessor certifies that the homestead occupant satisfies the
requirements of this paragraph.

Permanently and totally disabled for the purpose of this subdivision means a
condition which is permanent in nature and totally incapacitates the person from working
at an occupation which brings the person an income. The first $50,000 market value of
class 1b property has a net classification rate of .45 percent of its market value. The
remaining market value of class 1b property deleted text begin has a classification rate using the rates fordeleted text end new text begin is
classified asnew text end class 1a or class 2a property, whichever is appropriatedeleted text begin , of similar market valuedeleted text end .

(c) Class 1c property is commercial use real and personal property that abuts public
water as defined in section 103G.005, subdivision 15, and is devoted to temporary and
seasonal residential occupancy for recreational purposes but not devoted to commercial
purposes for more than 250 days in the year preceding the year of assessment, and that
includes a portion used as a homestead by the owner, which includes a dwelling occupied
as a homestead by a shareholder of a corporation that owns the resort, a partner in a
partnership that owns the resort, or a member of a limited liability company that owns the
resort even if the title to the homestead is held by the corporation, partnership, or limited
liability company. For purposes of this paragraph, property is devoted to a commercial
purpose on a specific day if any portion of the property, excluding the portion used
exclusively as a homestead, is used for residential occupancy and a fee is charged for
residential occupancy. Class 1c property must contain three or more rental units. A "rental
unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping
site equipped with water and electrical hookups for recreational vehicles. Class 1c property
must provide recreational activities such as the rental of ice fishing houses, boats and
motors, snowmobiles, downhill or cross-country ski equipment; provide marina services,
launch services, or guide services; or sell bait and fishing tackle. Any unit in which the
right to use the property is transferred to an individual or entity by deeded interest, or the
sale of shares or stock, no longer qualifies for class 1c even though it may remain available
for rent. A camping pad offered for rent by a property that otherwise qualifies for class 1c
is also class 1c, regardless of the term of the rental agreement, as long as the use of the
camping pad does not exceed 250 days. If the same owner owns two separate parcels that
are located in the same township, and one of those properties is classified as a class 1c
property and the other would be eligible to be classified as a class 1c property if it was
used as the homestead of the owner, both properties will be assessed as a single class 1c
property; for purposes of this sentence, properties are deemed to be owned by the same
owner if each of them is owned by a limited liability company, and both limited liability
companies have the same membership. The portion of the property used as a homestead
is class 1a property under paragraph (a). The remainder of the property is classified as
follows: the first $600,000 of market value is tier I, the next $1,700,000 of market value
is tier II, and any remaining market value is tier III. The classification rates for class 1c
are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 percent. Owners of real and
personal property devoted to temporary and seasonal residential occupancy for recreation
purposes in which all or a portion of the property was devoted to commercial purposes for
not more than 250 days in the year preceding the year of assessment desiring classification
as class 1c, must submit a declaration to the assessor designating the cabins or units
occupied for 250 days or less in the year preceding the year of assessment by January 15 of
the assessment year. Those cabins or units and a proportionate share of the land on which
they are located must be designated as class 1c as otherwise provided. The remainder of
the cabins or units and a proportionate share of the land on which they are located must be
designated as class 3a commercial. The owner of property desiring designation as class
1c property must provide guest registers or other records demonstrating that the units for
which class 1c designation is sought were not occupied for more than 250 days in the
year preceding the assessment if so requested. The portion of a property operated as a
(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other
nonresidential facility operated on a commercial basis not directly related to temporary
and seasonal residential occupancy for recreation purposes does not qualify for class 1c.

(d) Class 1d property includes structures that meet all of the following criteria:

(1) the structure is located on property that is classified as agricultural property under
section 273.13, subdivision 23;

(2) the structure is occupied exclusively by seasonal farm workers during the time
when they work on that farm, and the occupants are not charged rent for the privilege of
occupying the property, provided that use of the structure for storage of farm equipment
and produce does not disqualify the property from classification under this paragraph;

(3) the structure meets all applicable health and safety requirements for the
appropriate season; and

(4) the structure is not salable as residential property because it does not comply
with local ordinances relating to location in relation to streets or roads.

The market value of class 1d property has the same classification rates as class
1a property under paragraph (a).

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Minnesota Statutes 2014, section 273.33, subdivision 1, is amended to read:


Subdivision 1.

Listing and assessment in county.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Minnesota Statutes 2014, section 273.33, subdivision 2, is amended to read:


Subd. 2.

Listing and assessment by commissioner.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

Minnesota Statutes 2014, section 273.372, subdivision 1, is amended to read:


Subdivision 1.

Scope.

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for appeals of valuations made in
assessment year 2017 and thereafter.
 new text end

Sec. 22.

Minnesota Statutes 2014, section 273.372, subdivision 2, is amended to read:


Subd. 2.

Contents and filing of petition.

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2017 and
thereafter.
 new text end

Sec. 23.

Minnesota Statutes 2014, section 273.372, subdivision 4, is amended to read:


Subd. 4.

Administrative appeals.

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

(b) Companies deleted text begin thatdeleted text end must deleted text begin submit reports under section 270.82 must submitdeleted text end new text begin filenew text end a
written request deleted text begin todeleted text end new text begin for an appeal withnew text end the commissioner deleted text begin for a conferencedeleted text end within deleted text begin tendeleted text end new text begin 30
new text end days after the new text begin notice new text end date of the commissioner's valuation certification or new text begin other new text end notice
to the companydeleted text begin , or by June 15, whichever is earlierdeleted text end .new text begin For purposes of this section, the
term "notice date" means the date of the valuation certification, commissioner's order,
recommendation, or other notice.
new text end

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

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2017 and
thereafter.
 new text end

Sec. 24.

Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Agreement determining valuation. new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2017 and
thereafter.
 new text end

Sec. 25.

Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin Dismissal of administrative appeal. new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2016.
 new text end

Sec. 26.

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2016.
 new text end

Sec. 27.

Minnesota Statutes 2014, section 274.01, subdivision 1, is amended to read:


Subdivision 1.

Ordinary board; meetings, deadlines, grievances.

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 28.

Minnesota Statutes 2014, section 274.13, subdivision 1, is amended to read:


Subdivision 1.

Members; meetings; rules for equalizing assessments.

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 29.

Minnesota Statutes 2014, section 274.135, subdivision 3, is amended to read:


Subd. 3.

Proof of compliance; transfer of duties.

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 30.

Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read:


Subdivision 1.

Proposed levy.

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 31.

Minnesota Statutes 2014, section 275.62, subdivision 2, is amended to read:


Subd. 2.

Local governments required to report.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 32.

Minnesota Statutes 2014, section 278.01, subdivision 1, is amended to read:


Subdivision 1.

Determination of validity.

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 33.

Minnesota Statutes 2014, section 282.01, subdivision 1a, is amended to read:


Subd. 1a.

Conveyance to public entities.

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

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

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

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

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

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

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

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

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

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

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

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

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

(5) public beaches or boat launches;

(6) public parking;

(7) civic recreation or conference facilities; and

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 34.

Minnesota Statutes 2014, section 282.01, subdivision 1d, is amended to read:


Subd. 1d.

Reverter for failure to use; conveyance to state.

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 35.

Minnesota Statutes 2014, section 477A.013, is amended by adding a
subdivision to read:


new text begin Subd. 14. new text end

new text begin Communication by electronic mail. new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2017 and thereafter.
 new text end

Sec. 36.

Minnesota Statutes 2014, section 477A.19, is amended by adding a
subdivision to read:


new text begin Subd. 3a. new text end

new text begin Certification. new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2017 and thereafter.
 new text end

Sec. 37.

Minnesota Statutes 2014, section 477A.19, is amended by adding a
subdivision to read:


new text begin Subd. 3b. new text end

new text begin Certification. new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2017 and thereafter.
 new text end

Sec. 38.

Minnesota Statutes 2014, section 559.202, subdivision 2, is amended to read:


Subd. 2.

Exception.

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 39.

Laws 2014, chapter 308, article 1, section 14, subdivision 2, is amended to read:


Subd. 2.

Payment of supplemental credit.

new text begin (a) new text end The commissioner must pay
supplemental credit amounts to each qualifying taxpayer by October 15, 2014.

new text begin (b) If the commissioner cannot locate the qualifying taxpayer by October 15, 2016,
or if a qualifying taxpayer to whom a warrant was issued does not cash that warrant within
two years from the date the warrant was issued, the right to the credit shall lapse and the
warrant shall be deposited in the general fund.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 40.

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


Sec. 94. REPEALER.

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 41. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2014, section 281.22, new text end new text begin is repealed.
 new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective the day following final enactment.
Paragraph (b) is effective beginning with assessment year 2016.
 new text end

ARTICLE 15

DEPARTMENT POLICY AND TECHNICAL PROVISIONS; MISCELLANEOUS

Section 1.

Minnesota Statutes 2014, section 270.82, subdivision 1, is amended to read:


Subdivision 1.

Annual report required.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2014, section 270A.03, subdivision 5, is amended to read:


Subd. 5.

Debt.

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

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

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2014, section 270B.14, subdivision 1, is amended to read:


Subdivision 1.

Disclosure to commissioner of human services.

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2014, section 270C.30, is amended to read:


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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2014, section 270C.33, subdivision 5, is amended to read:


Subd. 5.

Prohibition against collection during appeal period of an order.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December
31, 2016.
 new text end

Sec. 6.

Minnesota Statutes 2014, section 270C.33, subdivision 8, is amended to read:


Subd. 8.

Sufficiency of notice.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments dated after December
31, 2016.
 new text end

Sec. 7.

Minnesota Statutes 2014, section 270C.34, subdivision 2, is amended to read:


Subd. 2.

Procedure.

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders and notices dated after
December 31, 2016.
 new text end

Sec. 8.

Minnesota Statutes 2014, section 270C.347, subdivision 1, is amended to read:


Subdivision 1.

Checks and warrants, authority to reissue.

Notwithstanding any
other provision of law, the commissioner may, based on a showing of reasonable cause,
reissue an uncashed rebatenew text begin , supplemental agricultural credit,new text end or property tax refund warrant
or check that has lapsed under any provision of law relating to rebates or under section
290A.18, subdivision 2. The authority to reissue warrants or checks under this subdivision
is limited to five years after the date of issuance of the original warrant or check.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2014, section 270C.35, subdivision 3, is amended to read:


Subd. 3.

Notice date.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders and notices dated after
December 31, 2016.
 new text end

Sec. 10.

Minnesota Statutes 2014, section 270C.35, is amended by adding a
subdivision to read:


new text begin Subd. 11. new text end

new text begin Dismissal of administrative appeal. new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for all administrative appeals filed
after June 30, 2016.
 new text end

Sec. 11.

Minnesota Statutes 2014, section 270C.38, subdivision 1, is amended to read:


Subdivision 1.

Sufficient notice.

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for notices dated after December
31, 2016.
 new text end

Sec. 12.

Minnesota Statutes 2014, section 270C.445, is amended by adding a
subdivision to read:


new text begin Subd. 9. new text end

new text begin Enforcement; limitations. new text end

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2014, section 270C.446, subdivision 5, is amended to read:


Subd. 5.

Removal from list.

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2014, section 270C.72, subdivision 4, is amended to read:


Subd. 4.

Licensing authority; duties.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2014, section 271.06, subdivision 2, is amended to read:


Subd. 2.

Time; notice; intervention.

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December
31, 2016.
 new text end

Sec. 16.

Minnesota Statutes 2014, section 271.06, subdivision 7, is amended to read:


Subd. 7.

Rules.

Except as provided in section 278.05, subdivision 6, the Rules
of Evidence and Civil Procedure for the district court of Minnesota shall govern the
procedures in the Tax Court, where practicable.new text begin The Rules of Civil Procedure do not apply
to alter the 60-day period of time to file a notice of appeal provided in subdivision 2.new text end The
Tax Court may adopt rules under chapter 14. The rules in effect on January 1, 1989,
apply until superseded.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December
31, 2016.
 new text end

Sec. 17.

Minnesota Statutes 2014, section 272.02, subdivision 10, is amended to read:


Subd. 10.

Personal property used for pollution control.

Personal property used
primarily for the abatement and control of air, water, or land pollution is exempt to the
extent that it is so used, and real property is exempt if it is used primarily for abatement
and control of air, water, or land pollution as part of an agricultural operation, as a part
of a centralized treatment and recovery facility operating under a permit issued by the
Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota
Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater
treatment facility and for the treatment, recovery, and stabilization of metals, oils,
chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as
part of an electric generation system. For purposes of this subdivision, personal property
includes ponderous machinery and equipment used in a business or production activity
that at common law is considered real property.

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2014, section 272.0211, subdivision 1, is amended to read:


Subdivision 1.

Efficiency determination and certification.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Minnesota Statutes 2014, section 272.025, subdivision 1, is amended to read:


Subdivision 1.

Statement of exemption.

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Minnesota Statutes 2014, section 272.029, subdivision 4, is amended to read:


Subd. 4.

Reports.

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
except that the amendment in paragraph (a) moving the date to file the report is effective
for reports filed in 2017 and thereafter.
 new text end

Sec. 21.

Minnesota Statutes 2014, section 272.0295, subdivision 4, is amended to read:


Subd. 4.

Reports.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Minnesota Statutes 2014, section 272.115, subdivision 2, is amended to read:


Subd. 2.

Form; information required.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

Minnesota Statutes 2014, section 273.124, subdivision 13, is amended to read:


Subd. 13.

Homestead application.

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 24.

Minnesota Statutes 2014, section 273.371, is amended to read:


273.371 REPORTS OF UTILITY COMPANIES.

Subdivision 1.

Report required.

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

Subd. 2.

Extension.

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

new text begin Subd. 3. new text end

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 25.

Minnesota Statutes 2014, section 287.2205, is amended to read:


287.2205 TAX-FORFEITED LAND.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 26.

Minnesota Statutes 2014, section 289A.08, is amended by adding a
subdivision to read:


new text begin Subd. 17. new text end

new text begin Format. new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

Minnesota Statutes 2014, section 289A.09, subdivision 1, is amended to read:


Subdivision 1.

Returns.

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 28.

Minnesota Statutes 2014, section 289A.11, subdivision 1, is amended to read:


Subdivision 1.

Return required.

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 29.

Minnesota Statutes 2014, section 289A.18, subdivision 1, is amended to read:


Subdivision 1.

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

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

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 30.

Minnesota Statutes 2014, section 289A.37, subdivision 2, is amended to read:


Subd. 2.

Erroneous refunds.

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies retroactively to all refunds issued on, before, or after that date, but does not apply to
the refunds at issue in Connexus Energy et al. v. Commissioner of Revenue, 868 N.W.2d
234 (Minn. 2015). Notwithstanding any law to the contrary, the changes in this section do
not invalidate any assessments made by the commissioner prior to this effective date.
 new text end

Sec. 31.

Minnesota Statutes 2014, section 289A.50, subdivision 7, is amended to read:


Subd. 7.

Remedies.

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims for refund denied after
December 31, 2016.
 new text end

Sec. 32.

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

new text begin The commissioner shall prescribe the content, format, and manner of all forms and
other documents required to be filed under this chapter pursuant to section 270C.30.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 33.

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for certifications filed after July
1, 2017.
 new text end

Sec. 34.

new text begin [293.15] FORMS.
new text end

new text begin The commissioner shall prescribe the content, format, and manner of all forms and
other documents required to be filed under this chapter pursuant to section 270C.30.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 35.

Minnesota Statutes 2014, section 295.55, subdivision 6, is amended to read:


Subd. 6.

Form of returns.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 36.

Minnesota Statutes 2014, section 296A.02, is amended by adding a
subdivision to read:


new text begin Subd. 5. new text end

new text begin Forms. new text end

new text begin The commissioner shall prescribe the content, format, and manner
of all forms and other documents required to be filed under this chapter pursuant to section
270C.30.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 37.

Minnesota Statutes 2014, section 296A.22, subdivision 9, is amended to read:


Subd. 9.

Abatement of penalty.

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders and notices dated after
December 31, 2016.
 new text end

Sec. 38.

Minnesota Statutes 2014, section 296A.26, is amended to read:


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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December
31, 2016.
 new text end

Sec. 39.

Minnesota Statutes 2014, section 297D.02, is amended to read:


297D.02 ADMINISTRATION.

The commissioner of revenue shall administer this chapter.new text begin The commissioner shall
prescribe the content, format, and manner of all forms and other documents required to be
filed under this chapter pursuant to section 270C.30.new text end Payments required by this chapter
must be made to the commissioner on the form provided by the commissioner. Tax obligors
are not required to give their name, address, Social Security number, or other identifying
information on the form. The commissioner shall collect all taxes under this chapter.

new text begin EFFECTIVE DATE. new text end

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

Sec. 40.

Minnesota Statutes 2014, section 297E.02, subdivision 3, is amended to read:


Subd. 3.

Collection; disposition.

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 41.

Minnesota Statutes 2014, section 297E.04, subdivision 1, is amended to read:


Subdivision 1.

Reports of sales.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 42.

Minnesota Statutes 2014, section 297E.05, subdivision 4, is amended to read:


Subd. 4.

Reports.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 43.

Minnesota Statutes 2014, section 297E.06, subdivision 1, is amended to read:


Subdivision 1.

Reports.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 44.

Minnesota Statutes 2014, section 297F.09, subdivision 1, is amended to read:


Subdivision 1.

Monthly return; cigarette distributor.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 45.

Minnesota Statutes 2014, section 297F.23, is amended to read:


297F.23 JUDICIAL REVIEW.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December
31, 2016.
 new text end

Sec. 46.

Minnesota Statutes 2014, section 297G.09, subdivision 1, is amended to read:


Subdivision 1.

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 47.

Minnesota Statutes 2014, section 297G.22, is amended to read:


297G.22 JUDICIAL REVIEW.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders dated after December
31, 2016.
 new text end

Sec. 48.

Minnesota Statutes 2014, section 297I.30, is amended by adding a subdivision
to read:


new text begin Subd. 11. new text end

new text begin Format. new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 49.

Minnesota Statutes 2014, section 297I.60, subdivision 2, is amended to read:


Subd. 2.

Remedies.

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims for refund denied after
December 31, 2016.
 new text end

Sec. 50.

Minnesota Statutes 2014, section 469.319, subdivision 5, is amended to read:


Subd. 5.

Waiver authority.

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

(1) a natural disaster;

(2) unforeseen industry trends; or

(3) loss of a major supplier or customer.

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for orders of the commissioner of
revenue dated after December 31, 2016.
 new text end

Sec. 51. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 290C.06, new text end new text begin is repealed.
 new text end

new text begin EFFECTIVE DATE. new text end

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