Key: (1) language to be deleted (2) new language
An act
relating to financing and operation of state and local government; making changes to individual income, corporate franchise, property, sales and use, estate, mineral, tobacco, alcohol, special, local, and other taxes and tax-related provisions modifying the property tax refund; changing property tax aids and credits; modifying the Sustainable Forest Incentive Act; modifying education aids and levies; providing additional pension funding; modifying definitions and distributions for property taxes; providing for property tax exemptions; modifying the payment in lieu of tax provisions; modifying education aids and levies; modifying tobacco tax provisions; making changes to additions and subtractions from federal taxable income; providing for federal conformity; changing income tax rates for individuals, estates, and trusts; providing income tax credits; modifying estate tax provisions; providing for a state gift tax; expanding the sales tax base; modifying the duty to collect and remit sales taxes for certain sellers; imposing the sales tax on digital products and selected services; modifying the definition of sale and purchase; modifying provisions for the rental motor vehicle tax rate; providing for multiple points of use certificates; modifying sales tax exemptions; authorizing local sales taxes; authorizing economic development powers; modifying tax increment financing rules; providing authority, organization, powers, duties, and requiring a prevailing wage for development of a Destination Medical Center; authorizing state infrastructure aid; modifying the distribution of taconite production taxes; authorizing taconite production tax bonds for grants to school districts; modifying and providing provisions for public finance; providing funding for legislative office facilities; modifying the definition of market value for tax, debt, and other purposes; making conforming, policy, and technical changes to tax provisions; requiring studies and reports; appropriating money;
amending Minnesota Statutes 2012, sections 13.792; 16A.46; 16A.727; 38.18; 40A.15, subdivision 2; 69.011, subdivision 1; 69.021, subdivisions 7, 8; 88.51, subdivision 3; 103B.102, subdivision 3; 103B.245, subdivision 3; 103B.251, subdivision 8; 103B.335; 103B.3369, subdivision 5; 103B.635, subdivision 2; 103B.691, subdivision 2; 103C.501, subdivision 4; 103D.905, subdivisions 2, 3, 8; 103F.405, subdivision 1; 116J.8737, subdivisions 1, 2, 8; 117.025, subdivision 7; 118A.04, subdivision 3; 118A.05, subdivision 5; 123A.455, subdivision 1; 126C.10, subdivision 1, by adding a subdivision; 126C.13, subdivision 4; 126C.17; 126C.48, subdivision 8; 127A.48, subdivision 1; 138.053; 144F.01, subdivision 4; 162.07, subdivisions 3, 4; 163.04, subdivision 3; 163.06, subdivision 6; 165.10, subdivision 1; 168.012, subdivision 9, by adding a subdivision; 216C.436, subdivision 7; 237.52, subdivision 3, by adding a subdivision; 270.077; 270.41, subdivisions 3, 5, by adding a subdivision; 270.45; 270B.01, subdivision 8; 270B.03, subdivision 1; 270B.12, subdivision 4; 270C.03, subdivision 1; 270C.34, subdivision 1; 270C.38, subdivision 1; 270C.42, subdivision 2; 270C.56, subdivision 1; 271.06, subdivision 2a, as added; 272.01, subdivision 2; 272.02, subdivisions 39, 97, by adding subdivisions; 272.03, subdivision 9, by adding subdivisions; 273.032; 273.061, subdivision 2; 273.0645; 273.11, subdivision 1; 273.114, subdivision 6; 273.117; 273.124, subdivisions 3a, 13; 273.13, subdivisions 21b, 23, 25; 273.1398, subdivisions 3, 4; 273.19, subdivision 1; 273.372, subdivision 4; 273.39; 275.011, subdivision 1; 275.077, subdivision 2; 275.71, subdivision 4; 276.04, subdivision 2; 276A.01, subdivisions 10, 12, 13, 15; 276A.06, subdivision 10; 279.01, subdivision 1, by adding a subdivision; 279.02; 279.06, subdivision 1; 279.37, subdivisions 1a, 2; 281.14; 281.17; 287.05, by adding a subdivision; 287.08; 287.20, by adding a subdivision; 287.23, subdivision 1; 287.385, subdivision 7; 289A.08, subdivision 3; 289A.10, subdivision 1, by adding a subdivision; 289A.12, subdivision 14, by adding a subdivision; 289A.18, by adding a subdivision; 289A.20, subdivisions 3, 4, by adding a subdivision; 289A.26, subdivisions 3, 4, 7, 9; 289A.55, subdivision 9; 289A.60, subdivision 4; 290.01, subdivisions 19, as amended, 19b, 19c, 19d; 290.06, subdivisions 2c, 2d, by adding a subdivision; 290.0677, subdivision 2; 290.068, subdivisions 3, 6a; 290.0681, subdivisions 1, 3, 4, 5, 10; 290.091, subdivisions 1, 2, 6; 290.0921, subdivision 3; 290.0922, subdivision 1; 290.095, subdivision 2; 290.10, subdivision 1; 290.17, subdivision 4; 290.191, subdivision 5; 290.21, subdivision 4; 290.9705, subdivision 1; 290A.03, subdivision 3; 290A.04, subdivisions 2, 2a, 4; 290B.04, subdivision 2; 290C.02, subdivision 6; 290C.03; 290C.055; 290C.07; 291.005, subdivision 1; 291.03, subdivisions 1, 8, 9, 10, 11, by adding a subdivision; 296A.01, subdivisions 7, 8, 14, 19, 20, 23, 24, 26, by adding a subdivision; 296A.09, subdivision 2; 296A.17, subdivision 3; 296A.22, subdivisions 1, 3; 297A.61, subdivisions 3, 4, 10, 25, 38, 45, by adding subdivisions; 297A.64, subdivision 1; 297A.66, subdivision 3, by adding a subdivision; 297A.665; 297A.668, by adding a subdivision; 297A.67, subdivisions 7, 13, by adding a subdivision; 297A.68, subdivisions 2, 5, 42, by adding a subdivision; 297A.70, subdivisions 2, 4, 5, 7, 13, 14, by adding subdivisions; 297A.71, by adding subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.82, subdivision 4, by adding a subdivision; 297A.99, subdivision 1; 297B.11; 297E.021, subdivision 3; 297E.14, subdivision 7; 297F.01, subdivisions 3, 19, 23, by adding subdivisions; 297F.05, subdivisions 1, 3, 4, by adding subdivisions; 297F.09, subdivision 9; 297F.18, subdivision 7; 297F.24, subdivision 1; 297F.25, subdivision 1; 297G.04, subdivision 2; 297G.09, subdivision 8; 297G.17, subdivision 7; 297I.05, subdivisions 7, 11, 12; 297I.30, subdivisions 1, 2; 297I.80, subdivision 1; 298.01, subdivisions 3, 3b; 298.018; 298.17; 298.227, as amended; 298.24, subdivision 1; 298.28, subdivisions 4, 6, 9c, 10; 325D.32, subdivision 2; 325F.781, subdivision 1; 349.166, subdivision 1; 353G.08, subdivision 2; 360.531; 360.66; 365.025, subdivision 4; 366.095, subdivision 1; 366.27; 368.01, subdivision 23; 368.47; 370.01; 373.01, subdivisions 1, 3; 373.40, subdivisions 1, 2, 4; 375.167, subdivision 1; 375.18, subdivision 3; 375.555; 383A.80, subdivision 4; 383B.152; 383B.245; 383B.73, subdivision 1; 383B.80, subdivision 4; 383D.41, by adding a subdivision; 383E.20; 383E.23; 385.31; 394.36, subdivision 1; 398A.04, subdivision 8; 401.05, subdivision 3; 403.02, subdivision 21, by adding subdivisions; 403.06, subdivision 1a; 403.11, subdivision 1, by adding subdivisions; 410.32; 412.221, subdivision 2; 412.301; 428A.02, subdivision 1; 428A.101; 428A.21; 430.102, subdivision 2; 447.10; 450.19; 450.25; 458A.10; 458A.31, subdivision 1; 465.04; 469.033, subdivision 6; 469.034, subdivision 2; 469.053, subdivisions 4, 4a, 6; 469.071, subdivision 5; 469.107, subdivision 1; 469.169, by adding a subdivision; 469.176, subdivisions 4c, 4g, 6; 469.177, subdivisions 1a, 9, by adding subdivisions; 469.180, subdivision 2; 469.187; 469.206; 469.319, subdivision 4; 469.340, subdivision 4; 471.24; 471.571, subdivisions 1, 2; 471.73; 473.325, subdivision 2; 473.39, by adding a subdivision; 473.606, subdivision 3; 473.629; 473.661, subdivision 3; 473.667, subdivision 9; 473.671; 473.711, subdivision 2a; 473F.02, subdivisions 12, 14, 15, 23; 473F.08, subdivisions 3a, 10, by adding a subdivision; 474A.04, subdivision 1a; 474A.062; 474A.091, subdivision 3a; 475.521, subdivisions 1, 2, 4; 475.53, subdivisions 1, 3, 4; 475.58, subdivisions 2, 3b; 475.73, subdivision 1; 477A.011, subdivisions 20, 30, 34, 42, by adding subdivisions; 477A.0124, subdivision 2; 477A.013, subdivisions 1, 8, 9, by adding a subdivision; 477A.015; 477A.03, subdivisions 2a, 2b, by adding a subdivision; 477A.11, subdivisions 3, 4, by adding subdivisions; 477A.12, subdivisions 1, 2, 3; 477A.14, subdivision 1, by adding a subdivision; 641.23; 641.24; 645.44, by adding a subdivision; Laws 1971, chapter 773, section 1, subdivision 2, as amended; Laws 1988, chapter 645, section 3, as amended; Laws 1993, chapter 375, article 9, section 46, subdivisions 2, as amended, 5, as amended; Laws 1998, chapter 389, article 8, section 43, subdivisions 1, 3, as amended, 5, as amended; Laws 1999, chapter 243, article 6, section 11; Laws 2002, chapter 377, article 3, section 25, as amended; Laws 2005, First Special Session chapter 3, article 5, section 37, subdivisions 2, 4; Laws 2006, chapter 259, article 11, section 3, as amended; Laws 2008, chapter 366, article 5, sections 26; 33; 34, as amended; article 7, section 19, subdivision 3, as amended; Laws 2009, chapter 88, article 2, section 46, subdivisions 1, 3; Laws 2010, chapter 216, sections 11; 55; Laws 2010, chapter 389, article 1, section 12; article 5, section 6, subdivision 6; proposing coding for new law in Minnesota Statutes, chapters 116J; 116V; 124D; 136A; 270C; 287; 290A; 292; 403; 423A; 469; 477A; repealing Minnesota Statutes 2012, sections 16A.725; 97A.061; 256.9658; 272.69; 273.11, subdivisions 1a, 22; 276A.01, subdivision 11; 289A.60, subdivision 31; 290.01, subdivision 6b; 290.06, subdivision 22a; 290.0921, subdivision 7; 290.171; 290.173; 290.174; 297A.61, subdivision 27; 297A.68, subdivision 35; 473F.02, subdivision 13; 477A.011, subdivisions 2a, 19, 21, 29, 31, 32, 33, 36, 39, 40, 41; 477A.013, subdivisions 11, 12; 477A.0133; 477A.0134; Laws 1973, chapter 567, section 7, as amended; Laws 2009, chapter 88, article 4, section 23, as amended.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
(1) "Income" means the sum of the following:
(a) federal adjusted gross income as defined in the Internal Revenue Code; and
(b) the sum of the following amounts to the extent not included in clause (a):
(i) all nontaxable income;
(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss carryover allowed under section 469(b) of the Internal Revenue Code;
(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a solvent individual excluded from gross income under section 108(g) of the Internal Revenue Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including railroad retirement benefits, all payments received under the federal Social Security Act, Supplemental Security Income, and veterans benefits), which was not exclusively funded by the claimant or spouse, or which was funded exclusively by the claimant or spouse and which funding payments were excluded from federal adjusted gross income in the years when the payments were made;
(vi) interest received from the federal or a state government or any instrumentality or political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments received in the nature of disability income or sick pay as a result of accident, sickness, or other disability, whether funded through insurance or otherwise;
(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 1986, as amended through December 31, 1995;
(xi) contributions made by the claimant to an individual retirement account, including a qualified voluntary employee contribution; simplified employee pension plan; self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal Revenue Codenew text begin , to the extent the sum of amounts exceeds the retirement base amount for the claimant and spousenew text end ;
(xii)new text begin to the extent not included in federal adjusted gross income, distributions received by the claimant or spouse from a traditional or Roth style retirement account or plan;new text end
new text begin (xiii)new text end nontaxable scholarship or fellowship grants;
deleted text begin (xiii)deleted text end new text begin (xiv)new text end the amount of deduction allowed under section 199 of the Internal Revenue Code;
deleted text begin (xiv)deleted text end new text begin (xv)new text end the amount of deduction allowed under section 220 or 223 of the Internal Revenue Code;
deleted text begin (xv)deleted text end new text begin (xvi)new text end the amount deleted text begin ofdeleted text end new text begin deducted for new text end tuition expenses deleted text begin required to be added to income under section 290.01, subdivision 19a, clause (12);deleted text end new text begin under section 222 of the Internal Revenue Code; andnew text end
deleted text begin (xvi)deleted text end new text begin (xvii)new text end the amount deducted for certain expenses of elementary and secondary school teachers under section 62(a)(2)(D) of the Internal Revenue Codedeleted text begin ; anddeleted text end new text begin .new text end
deleted text begin (xvii) unemployment compensation. deleted text end
In the case of an individual who files an income tax return on a fiscal year basis, the term "federal adjusted gross income" shall mean federal adjusted gross income reflected in the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced by the amount of a net operating loss carryback or carryforward or a capital loss carryback or carryforward allowed for the year.
(2) "Income" does not include:
(a) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
(b) amounts of any pension or annuity which was exclusively funded by the claimant or spouse and which funding payments were not excluded from federal adjusted gross income in the years when the payments were made;
(c)new text begin to the extent included in federal adjusted gross income, amounts contributed by the claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed the retirement base amount reduced by the amount of contributions excluded from federal adjusted gross income, but not less than zero;new text end
new text begin (d)new text end surplus food or other relief in kind supplied by a governmental agency;
deleted text begin (d)deleted text end new text begin (e)new text end relief granted under this chapter;
deleted text begin (e)deleted text end new text begin (f)new text end child support payments received under a temporary or final decree of dissolution or legal separation; or
deleted text begin (f)deleted text end new text begin (g)new text end 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.
(3) The sum of the following amounts may be subtracted from income:
(a) for the claimant's first dependent, the exemption amount multiplied by 1.4;
(b) for the claimant's second dependent, the exemption amount multiplied by 1.3;
(c) for the claimant's third dependent, the exemption amount multiplied by 1.2;
(d) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
(e) for the claimant's fifth dependent, the exemption amount; and
(f) if the claimant or claimant's spouse was disabled or attained the age of 65 on or before December 31 of the year for which the taxes were levied or rent paid, the exemption amount.
For purposes of this subdivision, the "exemption amount" means the exemption amount under section 151(d) of the Internal Revenue Code for the taxable year for which the income is reportednew text begin ; "retirement base amount" means the deductible amount for the taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for inflation as provided in section 219(b)(5)(D) of the Internal Revenue Code, without regard to whether the claimant or spouse claimed a deduction; and "traditional or Roth style retirement account or plan" means retirement plans under sections 401, 403, 408, 408A, and 457 of the Internal Revenue Codenew text end .
new text begin This section is effective beginning with refunds based on property taxes payable in 2014 and rent paid in 2013. new text end
A claimant whose property taxes payable are in excess of the percentage of the household income stated below shall pay an amount equal to the percent of income shown for the appropriate household income level along with the percent to be paid by the claimant of the remaining amount of property taxes payable. The state refund equals the amount of property taxes payable that remain, up to the state refund amount shown below.
deleted text begin Household Income deleted text end | deleted text begin Percent of Income deleted text end |
deleted text begin
Percent Paid by Claimant deleted text end |
deleted text begin
Maximum State Refund deleted text end |
|
deleted text begin $0 to 1,549 deleted text end | deleted text begin 1.0 percent deleted text end | deleted text begin 15 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 2,460 deleted text end |
deleted text begin 1,550 to 3,089 deleted text end | deleted text begin 1.1 percent deleted text end | deleted text begin 15 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 2,460 deleted text end |
deleted text begin 3,090 to 4,669 deleted text end | deleted text begin 1.2 percent deleted text end | deleted text begin 15 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 2,460 deleted text end |
deleted text begin 4,670 to 6,229 deleted text end | deleted text begin 1.3 percent deleted text end | deleted text begin 20 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 2,460 deleted text end |
deleted text begin 6,230 to 7,769 deleted text end | deleted text begin 1.4 percent deleted text end | deleted text begin 20 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 2,460 deleted text end |
deleted text begin 7,770 to 10,879 deleted text end | deleted text begin 1.5 percent deleted text end | deleted text begin 20 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 2,460 deleted text end |
deleted text begin 10,880 to 12,429 deleted text end | deleted text begin 1.6 percent deleted text end | deleted text begin 20 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 2,460 deleted text end |
deleted text begin 12,430 to 13,989 deleted text end | deleted text begin 1.7 percent deleted text end | deleted text begin 20 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 2,460 deleted text end |
deleted text begin 13,990 to 15,539 deleted text end | deleted text begin 1.8 percent deleted text end | deleted text begin 20 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 2,460 deleted text end |
deleted text begin 15,540 to 17,079 deleted text end | deleted text begin 1.9 percent deleted text end | deleted text begin 25 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 2,460 deleted text end |
deleted text begin 17,080 to 18,659 deleted text end | deleted text begin 2.0 percent deleted text end | deleted text begin 25 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 2,460 deleted text end |
deleted text begin 18,660 to 21,759 deleted text end | deleted text begin 2.1 percent deleted text end | deleted text begin 25 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 2,460 deleted text end |
deleted text begin 21,760 to 23,309 deleted text end | deleted text begin 2.2 percent deleted text end | deleted text begin 30 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 2,460 deleted text end |
deleted text begin 23,310 to 24,859 deleted text end | deleted text begin 2.3 percent deleted text end | deleted text begin 30 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 2,460 deleted text end |
deleted text begin 24,860 to 26,419 deleted text end | deleted text begin 2.4 percent deleted text end | deleted text begin 30 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 2,460 deleted text end |
deleted text begin 26,420 to 32,629 deleted text end | deleted text begin 2.5 percent deleted text end | deleted text begin 35 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 2,460 deleted text end |
deleted text begin 32,630 to 37,279 deleted text end | deleted text begin 2.6 percent deleted text end | deleted text begin 35 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 2,460 deleted text end |
deleted text begin 37,280 to 46,609 deleted text end | deleted text begin 2.7 percent deleted text end | deleted text begin 35 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 2,000 deleted text end |
deleted text begin 46,610 to 54,369 deleted text end | deleted text begin 2.8 percent deleted text end | deleted text begin 35 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 2,000 deleted text end |
deleted text begin 54,370 to 62,139 deleted text end | deleted text begin 2.8 percent deleted text end | deleted text begin 40 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,750 deleted text end |
deleted text begin 62,140 to 69,909 deleted text end | deleted text begin 3.0 percent deleted text end | deleted text begin 40 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,440 deleted text end |
deleted text begin 69,910 to 77,679 deleted text end | deleted text begin 3.0 percent deleted text end | deleted text begin 40 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,290 deleted text end |
deleted text begin 77,680 to 85,449 deleted text end | deleted text begin 3.0 percent deleted text end | deleted text begin 40 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,130 deleted text end |
deleted text begin 85,450 to 90,119 deleted text end | deleted text begin 3.5 percent deleted text end | deleted text begin 45 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 960 deleted text end |
deleted text begin 90,120 to 93,239 deleted text end | deleted text begin 3.5 percent deleted text end | deleted text begin 45 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 790 deleted text end |
deleted text begin 93,240 to 97,009 deleted text end | deleted text begin 3.5 percent deleted text end | deleted text begin 50 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 650 deleted text end |
deleted text begin 97,010 to 100,779 deleted text end | deleted text begin 3.5 percent deleted text end | deleted text begin 50 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 480 deleted text end |
new text begin Household Income new text end | new text begin Percent of Income new text end |
new text begin
Percent Paid by Claimant new text end |
new text begin
Maximum State Refund new text end |
|
new text begin $0 to 1,619 new text end | new text begin 1.0 percent new text end | new text begin 15 percent new text end | new text begin $ new text end | new text begin 2,580 new text end |
new text begin 1,620 to 3,229 new text end | new text begin 1.1 percent new text end | new text begin 15 percent new text end | new text begin $ new text end | new text begin 2,580 new text end |
new text begin 3,230 to 4,889 new text end | new text begin 1.2 percent new text end | new text begin 15 percent new text end | new text begin $ new text end | new text begin 2,580 new text end |
new text begin 4,890 to 6,519 new text end | new text begin 1.3 percent new text end | new text begin 20 percent new text end | new text begin $ new text end | new text begin 2,580 new text end |
new text begin 6,520 to 8,129 new text end | new text begin 1.4 percent new text end | new text begin 20 percent new text end | new text begin $ new text end | new text begin 2,580 new text end |
new text begin 8,130 to 11,389 new text end | new text begin 1.5 percent new text end | new text begin 20 percent new text end | new text begin $ new text end | new text begin 2,580 new text end |
new text begin 11,390 to 13,009 new text end | new text begin 1.6 percent new text end | new text begin 20 percent new text end | new text begin $ new text end | new text begin 2,580 new text end |
new text begin 13,010 to 14,649 new text end | new text begin 1.7 percent new text end | new text begin 20 percent new text end | new text begin $ new text end | new text begin 2,580 new text end |
new text begin 14,650 to 16,269 new text end | new text begin 1.8 percent new text end | new text begin 20 percent new text end | new text begin $ new text end | new text begin 2,580 new text end |
new text begin 16,270 to 17,879 new text end | new text begin 1.9 percent new text end | new text begin 25 percent new text end | new text begin $ new text end | new text begin 2,580 new text end |
new text begin 17,880 to 22,779 new text end | new text begin 2.0 percent new text end | new text begin 25 percent new text end | new text begin $ new text end | new text begin 2,580 new text end |
new text begin 22,780 to 24,399 new text end | new text begin 2.0 percent new text end | new text begin 30 percent new text end | new text begin $ new text end | new text begin 2,580 new text end |
new text begin 24,400 to 27,659 new text end | new text begin 2.0 percent new text end | new text begin 30 percent new text end | new text begin $ new text end | new text begin 2,580 new text end |
new text begin 27,660 to 39,029 new text end | new text begin 2.0 percent new text end | new text begin 35 percent new text end | new text begin $ new text end | new text begin 2,580 new text end |
new text begin 39,030 to 56,919 new text end | new text begin 2.0 percent new text end | new text begin 35 percent new text end | new text begin $ new text end | new text begin 2,090 new text end |
new text begin 56,920 to 65,049 new text end | new text begin 2.0 percent new text end | new text begin 40 percent new text end | new text begin $ new text end | new text begin 1,830 new text end |
new text begin 65,050 to 73,189 new text end | new text begin 2.1 percent new text end | new text begin 40 percent new text end | new text begin $ new text end | new text begin 1,510 new text end |
new text begin 73,190 to 81,319 new text end | new text begin 2.2 percent new text end | new text begin 40 percent new text end | new text begin $ new text end | new text begin 1,350 new text end |
new text begin 81,320 to 89,449 new text end | new text begin 2.3 percent new text end | new text begin 40 percent new text end | new text begin $ new text end | new text begin 1,180 new text end |
new text begin 89,450 to 94,339 new text end | new text begin 2.4 percent new text end | new text begin 45 percent new text end | new text begin $ new text end | new text begin 1,000 new text end |
new text begin 94,340 to 97,609 new text end | new text begin 2.5 percent new text end | new text begin 45 percent new text end | new text begin $ new text end | new text begin 830 new text end |
new text begin 97,610 to 101,559 new text end | new text begin 2.5 percent new text end | new text begin 50 percent new text end | new text begin $ new text end | new text begin 680 new text end |
new text begin 101,560 to 105,499 new text end | new text begin 2.5 percent new text end | new text begin 50 percent new text end | new text begin $ new text end | new text begin 500 new text end |
The payment made to a claimant shall be the amount of the state refund calculated under this subdivision. No payment is allowed if the claimant's household income is deleted text begin $100,780deleted text end new text begin $105,500new text end or more.
new text begin This section is effective for refund claims based on taxes payable in 2014 and thereafter. new text end
A claimant whose rent constituting property taxes exceeds the percentage of the household income stated below must pay an amount equal to the percent of income shown for the appropriate household income level along with the percent to be paid by the claimant of the remaining amount of rent constituting property taxes. The state refund equals the amount of rent constituting property taxes that remain, up to the maximum state refund amount shown below.
Household Income | Percent of Income | Percent Paid by Claimant |
Maximum State Refund |
|
deleted text begin $0 to 3,589 deleted text end | deleted text begin 1.0 percent deleted text end | deleted text begin 5 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 3,590 to 4,779 deleted text end | deleted text begin 1.0 percent deleted text end | deleted text begin 10 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 4,780 to 5,969 deleted text end | deleted text begin 1.1 percent deleted text end | deleted text begin 10 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 5,970 to 8,369 deleted text end | deleted text begin 1.2 percent deleted text end | deleted text begin 10 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 8,370 to 10,759 deleted text end | deleted text begin 1.3 percent deleted text end | deleted text begin 15 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 10,760 to 11,949 deleted text end | deleted text begin 1.4 percent deleted text end | deleted text begin 15 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 11,950 to 13,139 deleted text end | deleted text begin 1.4 percent deleted text end | deleted text begin 20 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 13,140 to 15,539 deleted text end | deleted text begin 1.5 percent deleted text end | deleted text begin 20 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 15,540 to 16,729 deleted text end | deleted text begin 1.6 percent deleted text end | deleted text begin 20 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 16,730 to 17,919 deleted text end | deleted text begin 1.7 percent deleted text end | deleted text begin 25 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 17,920 to 20,319 deleted text end | deleted text begin 1.8 percent deleted text end | deleted text begin 25 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 20,320 to 21,509 deleted text end | deleted text begin 1.9 percent deleted text end | deleted text begin 30 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 21,510 to 22,699 deleted text end | deleted text begin 2.0 percent deleted text end | deleted text begin 30 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 22,700 to 23,899 deleted text end | deleted text begin 2.2 percent deleted text end | deleted text begin 30 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 23,900 to 25,089 deleted text end | deleted text begin 2.4 percent deleted text end | deleted text begin 30 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 25,090 to 26,289 deleted text end | deleted text begin 2.6 percent deleted text end | deleted text begin 35 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 26,290 to 27,489 deleted text end | deleted text begin 2.7 percent deleted text end | deleted text begin 35 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 27,490 to 28,679 deleted text end | deleted text begin 2.8 percent deleted text end | deleted text begin 35 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 28,680 to 29,869 deleted text end | deleted text begin 2.9 percent deleted text end | deleted text begin 40 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 29,870 to 31,079 deleted text end | deleted text begin 3.0 percent deleted text end | deleted text begin 40 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 31,080 to 32,269 deleted text end | deleted text begin 3.1 percent deleted text end | deleted text begin 40 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 32,270 to 33,459 deleted text end | deleted text begin 3.2 percent deleted text end | deleted text begin 40 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,190 deleted text end |
deleted text begin 33,460 to 34,649 deleted text end | deleted text begin 3.3 percent deleted text end | deleted text begin 45 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 1,080 deleted text end |
deleted text begin 34,650 to 35,849 deleted text end | deleted text begin 3.4 percent deleted text end | deleted text begin 45 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 960 deleted text end |
deleted text begin 35,850 to 37,049 deleted text end | deleted text begin 3.5 percent deleted text end | deleted text begin 45 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 830 deleted text end |
deleted text begin 37,050 to 38,239 deleted text end | deleted text begin 3.5 percent deleted text end | deleted text begin 50 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 720 deleted text end |
deleted text begin 38,240 to 39,439 deleted text end | deleted text begin 3.5 percent deleted text end | deleted text begin 50 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 600 deleted text end |
deleted text begin 38,440 to 40,629 deleted text end | deleted text begin 3.5 percent deleted text end | deleted text begin 50 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 360 deleted text end |
deleted text begin 40,630 to 41,819 deleted text end | deleted text begin 3.5 percent deleted text end | deleted text begin 50 percent deleted text end | deleted text begin $ deleted text end | deleted text begin 120 deleted text end |
new text begin $0 to 4,909 new text end | new text begin 1.0 percent new text end | new text begin 5 percent new text end | new text begin $ new text end | new text begin 2,000 new text end |
new text begin 4,910 to 6,529 new text end | new text begin 1.0 percent new text end | new text begin 10 percent new text end | new text begin $ new text end | new text begin 2,000 new text end |
new text begin 6,530 to 8,159 new text end | new text begin 1.1 percent new text end | new text begin 10 percent new text end | new text begin $ new text end | new text begin 1,950 new text end |
new text begin 8,160 to 11,439 new text end | new text begin 1.2 percent new text end | new text begin 10 percent new text end | new text begin $ new text end | new text begin 1,900 new text end |
new text begin 11,440 to 14,709 new text end | new text begin 1.3 percent new text end | new text begin 15 percent new text end | new text begin $ new text end | new text begin 1,850 new text end |
new text begin 14,710 to 16,339 new text end | new text begin 1.4 percent new text end | new text begin 15 percent new text end | new text begin $ new text end | new text begin 1,800 new text end |
new text begin 16,340 to 17,959 new text end | new text begin 1.4 percent new text end | new text begin 20 percent new text end | new text begin $ new text end | new text begin 1,750 new text end |
new text begin 17,960 to 21,239 new text end | new text begin 1.5 percent new text end | new text begin 20 percent new text end | new text begin $ new text end | new text begin 1,700 new text end |
new text begin 21,240 to 22,869 new text end | new text begin 1.6 percent new text end | new text begin 20 percent new text end | new text begin $ new text end | new text begin 1,650 new text end |
new text begin 22,870 to 24,499 new text end | new text begin 1.7 percent new text end | new text begin 25 percent new text end | new text begin $ new text end | new text begin 1,650 new text end |
new text begin 24,500 to 27,779 new text end | new text begin 1.8 percent new text end | new text begin 25 percent new text end | new text begin $ new text end | new text begin 1,650 new text end |
new text begin 27,780 to 29,399 new text end | new text begin 1.9 percent new text end | new text begin 30 percent new text end | new text begin $ new text end | new text begin 1,650 new text end |
new text begin 29,400 to 34,299 new text end | new text begin 2.0 percent new text end | new text begin 30 percent new text end | new text begin $ new text end | new text begin 1,650 new text end |
new text begin 34,300 to 39,199 new text end | new text begin 2.0 percent new text end | new text begin 35 percent new text end | new text begin $ new text end | new text begin 1,650 new text end |
new text begin 39,200 to 45,739 new text end | new text begin 2.0 percent new text end | new text begin 40 percent new text end | new text begin $ new text end | new text begin 1,650 new text end |
new text begin 45,740 to 47,369 new text end | new text begin 2.0 percent new text end | new text begin 45 percent new text end | new text begin $ new text end | new text begin 1,500 new text end |
new text begin 47,370 to 49,009 new text end | new text begin 2.0 percent new text end | new text begin 45 percent new text end | new text begin $ new text end | new text begin 1,350 new text end |
new text begin 49,010 to 50,649 new text end | new text begin 2.0 percent new text end | new text begin 45 percent new text end | new text begin $ new text end | new text begin 1,150 new text end |
new text begin 50,650 to 52,269 new text end | new text begin 2.0 percent new text end | new text begin 50 percent new text end | new text begin $ new text end | new text begin 1,000 new text end |
new text begin 52,270 to 53,909 new text end | new text begin 2.0 percent new text end | new text begin 50 percent new text end | new text begin $ new text end | new text begin 900 new text end |
new text begin 53,910 to 55,539 new text end | new text begin 2.0 percent new text end | new text begin 50 percent new text end | new text begin $ new text end | new text begin 500 new text end |
new text begin 55,540 to 57,169 new text end | new text begin 2.0 percent new text end | new text begin 50 percent new text end | new text begin $ new text end | new text begin 200 new text end |
The payment made to a claimant is the amount of the state refund calculated under this subdivision. No payment is allowed if the claimant's household income is deleted text begin $41,820deleted text end new text begin $57,170new text end or more.
new text begin This section is effective for claims based on rent paid in 2013 and following years. new text end
(a) Beginning for property tax refunds payable in calendar year 2002, the commissioner shall annually adjust the dollar amounts of the income thresholds and the maximum refunds under subdivisions 2 and 2a for inflation. The commissioner shall make the inflation adjustments in accordance with section 1(f) of the Internal Revenue Code, except that for purposes of this subdivision the percentage increase shall be determined as provided in this subdivision.
(b) In adjusting the dollar amounts of the income thresholds and the maximum refunds under subdivision 2 for inflation, the percentage increase shall be determined from the year ending on June 30, deleted text begin 2011deleted text end new text begin 2013new text end , to the year ending on June 30 of the year preceding that in which the refund is payable.
(c) In adjusting the dollar amounts of the income thresholds and the maximum refunds under subdivision 2a for inflation, the percentage increase shall be determined from the year ending on June 30, deleted text begin 2000deleted text end new text begin 2013new text end , to the year ending on June 30 of the year preceding that in which the refund is payable.
(d) The commissioner shall use the appropriate percentage increase to annually adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for inflation without regard to whether or not the income tax brackets are adjusted for inflation in that year. The commissioner shall round the thresholds and the maximum amounts, as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up to the next $10 amount.
(e) The commissioner shall annually announce the adjusted refund schedule at the same time provided under section 290.06. The determination of the commissioner under this subdivision is not a rule under the Administrative Procedure Act.
new text begin This section is effective for refund claims based on taxes payable in 2014 and rent paid in 2013 and following years. new text end
new text begin (a) By September 1, 2014, the commissioner shall notify, in writing or electronically, individual homeowners whom the commissioner determines may be eligible for a homestead credit refund under this chapter for that property taxes payable year as provided in this section. In determining whether to notify a homeowner, the commissioner shall consider the property tax information available to the commissioner under paragraph (b) for the homeowner and must estimate the homeowner's household income using the most recent income information available to the commissioner from filing under this chapter for the prior year, under chapter 290 for the current or prior year, and any other income information available to the commissioner. For each homeowner, the commissioner must estimate the homestead credit refund amount under the schedule in section 290A.04, subdivision 2, using the homeowner's property tax amount and estimated household income. If the estimated homestead credit refund is at least $1,000, the commissioner must notify the homeowner of potential eligibility for the homestead credit refund. The notification must include information on how to file for the homestead credit refund. The notification requirement under this section does not apply to a homeowner who has already filed for the homestead credit refund for the current or prior year. new text end
new text begin (b) By May 15, 2014, each county auditor shall transmit to the commissioner of revenue the following information for each property classified as a residential or agricultural homestead under section 273.13, subdivision 22 or 23: new text end
new text begin (1) the property taxes payable; new text end
new text begin (2) the name and address of the owner; new text end
new text begin (3) the Social Security number or numbers of the owners; and new text end
new text begin (4) any other information the commissioner deems necessary or useful to carry out the provisions of this section. new text end
new text begin The information must be provided in the form and manner prescribed by the commissioner. new text end
new text begin (a) By March 15, 2015, the commissioner must provide a written report to the chairs and ranking minority members of the legislative committees with jurisdiction over taxes, in compliance with sections 3.195 and 3.197. The report must provide information on the number and dollar amount of homeowner property tax refund claims based on taxes payable in 2014, including: new text end
new text begin (1) the number and dollar amount of claims projected for homestead credit refunds based on taxes payable in 2014 prior to enactment of the notification requirement in this section; new text end
new text begin (2) the number of notifications issued as provided in this section, including the number issued by county; new text end
new text begin (3) preliminary information on the number and dollar amount of claims for homestead credit refunds based on taxes payable in 2014; and new text end
new text begin (4) a description of any outreach efforts undertaken by the commissioner for homestead credit refunds based on taxes payable in 2014, in addition to the notification required in this section. new text end
new text begin (b) By February 1, 2016, the commissioner must provide a written report to the chairs and ranking minority members of the legislative committees with jurisdiction over taxes, in compliance with sections 3.195 and 3.197. The report must include the information required in paragraph (a) and must also include final information on the number and dollar amount of claims for homestead credit refunds based on taxes payable in 2014. new text end
new text begin This section is effective for refund claims based on property taxes payable in 2014. new text end
(a) Beginning with taxes payable in 1989, class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property is located in a border city that has an enterprise zone, as defined in section 469.166; (2) the property is located in a city with a population greater than 2,500 and less than 35,000 according to the 1980 decennial census; (3) the city is adjacent to a city in another state or immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city in the other state has a population of greater than 5,000 and less than 75,000 according to the 1980 decennial census.
(b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a property to deleted text begin 2.3deleted text end new text begin 1.9new text end percent of the property's market value and (ii) the tax on class 3a property to deleted text begin 2.3deleted text end new text begin 1.9new text end percent of market value.
(c) The county auditor shall annually certify the costs of the credits to the Department of Revenue. The department shall reimburse local governments for the property taxes forgone as the result of the credits in proportion to their total levies.
new text begin This section is effective beginning with taxes payable in 2014. new text end
"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 290C.11, 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, deleted text begin ordeleted text end (iii) new 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) 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 (v) new text end land improved with a structure, pavement, sewer, campsite, or any road, other than a township road, used for purposes not prescribed in the forest management plan.
new text begin This section is effective for certifications and applications due in 2013 and thereafter. new text end
(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; and
(6) claimants enrolling more than 1,920 acres in the sustainable forest incentive program must allow year-round, nonmotorized access to fish and wildlife resources new text begin 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 new text end on enrolled land except within one-fourth mile of a permanent dwelling or during periods of high fire hazard as determined by the commissioner of natural resources.
(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 This section is effective for calculations made in 2013 and thereafter. new text end
new text begin (a) new text end The covenant remains in effect for a minimum of eight years. If land is removed from the program before it has been enrolled for four years, the covenant remains in effect for eight years from the date recorded.
new text begin (b) new text end If land that has been enrolled for four years 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 fifth calendar year 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.
new text begin (c) new text end Notwithstanding the other provisions of this section, the covenant is terminatednew text begin :new text end
new text begin (1)new text end 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.10new text begin ; ornew text end
new text begin (2) at the request of the claimant after a reduction in payments due to changes in the payment formula under section 290C.07new text end .
new text begin This section is effective for calculations made in 2013 and thereafter. new text end
deleted text begin (a)deleted text end An approved claimant under the sustainable forest incentive program is eligible to receive an annual payment. The payment shall equal $7 per acre for each acre enrolled in the sustainable forest incentive program.
deleted text begin (b) The annual payment for each Social Security number or state or federal business tax identification number must not exceed $100,000. deleted text end
new text begin This section is effective for calculations made in 2013 and thereafter. new text end
new text begin Annually, the commissioner of revenue shall allocate police and firefighter retirement supplemental state aid appropriated under subdivision 6 as provided in subdivision 2 and paid as provided in subdivision 4. new text end
new text begin Of the total amount appropriated as supplemental state aid: new text end
new text begin (1) 58.065 percent must be paid to the executive director of the Public Employees Retirement Association for deposit in the public employees police and fire retirement fund established by section 353.65, subdivision 1; new text end
new text begin (2) 35.484 percent must be paid to municipalities other than municipalities solely employing firefighters with retirement coverage provided by the public employees police and fire retirement plan which qualified to receive fire state aid in that calendar year, allocated in proportion to the most recent amount of fire state aid paid under section 69.021, subdivision 7, for the municipality bears to the most recent total fire state aid for all municipalities other than the municipalities solely employing firefighters with retirement coverage provided by the public employees police and fire retirement plan paid under section 69.021, subdivision 7, with the allocated amount for fire departments participating in the voluntary statewide lump-sum volunteer firefighter retirement plan paid to the executive director of the Public Employees Retirement Association for deposit in the fund established by section 353G.02, subdivision 3, and credited to the respective account and with the balance paid to the treasurer of each municipality for transmittal within 30 days of receipt to the treasurer of the applicable volunteer firefighter relief association for deposit in its special fund; and new text end
new text begin (3) 6.452 percent must be paid to the executive director of the Minnesota State Retirement System for deposit in the state patrol retirement fund. new text end
new text begin (a) On or before September 1, annually, the executive director of the Public Employees Retirement Association shall report to the commissioner of revenue the following: new text end
new text begin (1) the municipalities which employ firefighters with retirement coverage by the public employees police and fire retirement plan; new text end
new text begin (2) the number of firefighters with public employees police and fire retirement plan coverage employed by each municipality; new text end
new text begin (3) the fire departments covered by the voluntary statewide lump-sum volunteer firefighter retirement plan; and new text end
new text begin (4) any other information requested by the commissioner to administer the police and firefighter retirement supplemental state aid program. new text end
new text begin (b) For this subdivision, (i) the number of firefighters employed by a municipality who have public employees police and fire retirement plan coverage means the number of firefighters with public employees police and fire retirement plan coverage that were employed by the municipality for not less than 30 hours per week for a minimum of six months prior to December 31 preceding the date of the payment under this section and, if the person was employed for less than the full year, prorated to the number of full months employed; and (ii) the number of active police officers certified for police state aid receipt under section 69.011, subdivisions 2 and 2b, means, for each municipality, the number of police officers meeting the definition of peace officer in section 69.011, subdivision 1, counted as provided and limited by section 69.011, subdivisions 2 and 2b. new text end
new text begin (a) The payments under this section must be made on October 1 each year, with interest at one percent for each month, or portion of a month, that the amount remains unpaid after October 1. Any necessary adjustments must be made to subsequent payments. new text end
new text begin (b) The provisions of sections 69.011 to 69.051 that prevent municipalities and relief associations from being eligible for, or receiving fire state aid under sections 69.011 to 69.051 until the applicable financial reporting requirements have been complied with, apply to the amounts payable to municipalities and relief associations under this section. new text end
new text begin The aid program under this section ends on the December 1 next following the actuarial valuation date on which the assets of the retirement plan on a market value basis equals or exceeds 90 percent of the total actuarial accrued liabilities of the retirement plan as disclosed in an actuarial valuation prepared under section 356.215 and the Standards for Actuarial Work promulgated by the Legislative Commission on Pensions and Retirement, for the State Patrol retirement plan or the public employees police and fire retirement plan, whichever occurs last. new text end
new text begin $15,500,000 is appropriated annually to the commissioner of revenue for this aid program. new text end
new text begin This section is effective beginning in the fiscal year beginning July 1, 2013. new text end
new text begin (a) Except as provided in paragraph (b), new text end "pre-1940 housing percentage" for a city is 100 times the most recent deleted text begin federal censusdeleted text end count new text begin by the United States Bureau of the Censusnew text end of all housing units in the city built before 1940, divided by the total number of all housing units in the city. Housing units includes both occupied and vacant housing units as defined by the federal census.new text begin For aids payable in 2014, "pre-1940 housing percentage" shall be based on 2010 housing data.new text end
new text begin (b) For the city of East Grand Forks only, "pre-1940 housing percentage" is equal to 100 times the 1990 federal census count of all housing units in the city built before 1940, divided by the most recent count by the United States Bureau of the Census of all housing units in the city. Housing units includes both occupied and vacant housing units as defined by the federal census. new text end
new text begin This section is effective for aids payable in calendar year 2014 and thereafter. new text end
new text begin "Percent of housing built between 1940 and 1970" is equal to 100 times the most recent count by the United States Bureau of the Census of all housing units in the city built after 1939 but before 1970, divided by the total number of all housing units in the city. Housing units includes both occupied and vacant housing units as defined by the federal census. For aids payable in 2014, "percent of housing built between 1940 and 1970" shall be based on 2010 housing data. new text end
new text begin This section is effective for aids payable in calendar year 2014 and thereafter. new text end
(a) For a city with a population equal to or greater than deleted text begin 2,500deleted text end new text begin 10,000new text end , "city revenue need" is deleted text begin the greater of 285 ordeleted text end new text begin 1.15 timesnew text end the sum of (1) deleted text begin 5.0734098deleted text end new text begin 4.59new text end times the pre-1940 housing percentage; plus (2) deleted text begin 19.141678 times the population decline percentagedeleted text end new text begin 0.622 times the percent of housing built between 1940 and 1970new text end ; plus (3) deleted text begin 2504.06334 times the road accidents factordeleted text end new text begin 169.415 times the jobs per capitanew text end ; plus (4) deleted text begin 355.0547; minus (5) the metropolitan area factor; minus (6) 49.10638 times the household sizedeleted text end new text begin the sparsity adjustment; plus (5) 307.664new text end .
new text begin (b) For a city with a population equal to or greater than 2,500 and less than 10,000, "city revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940 housing percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak population decline. new text end
deleted text begin (b)deleted text end new text begin (c)new text end For a city with a population less than 2,500, "city revenue need" is the sum of deleted text begin (1) 2.387 times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial industrial percentage; plus (3) 3.16042 times the population decline percentage; plus (4) 1.206 times the transformed population; minus (5) 62.772deleted text end new text begin 410 plus 0.367 times the city's population over 100. The city revenue need under this paragraph shall not exceed 630new text end .
deleted text begin (c)deleted text end new text begin (d)new text end For a city with a population ofnew text begin at leastnew text end 2,500 deleted text begin or more and a population in one of the most recently available five years that was less than 2,500, "city revenue need" is the sum of (1) its city revenue need calculated under paragraph (a) multiplied by its transition factor; plus (2) its city revenue need calculated under the formula in paragraph (b) multiplied by the difference between one and its transition factor. For purposes of this paragraph, a city's "transition factor" is equal to 0.2 multiplied by the number of years that the city's population estimate has been 2,500 or more. This provision only applies for aids payable in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500. It applies to any city for aids payable in 2009 and thereafterdeleted text end new text begin but less than 3,000, the "city revenue need" equals (1) the transition factor times the city's revenue need calculated in paragraph (b) plus (2) 630 times the difference between one and the transition factor. For a city with a population of at least 10,000 but less than 10,500, the "city revenue need" equals (1) the transition factor times the city's revenue need calculated in paragraph (a) plus (2) the city's revenue need calculated under the formula in paragraph (b) times the difference between one and the transition factor. For purposes of this paragraph "transition factor" is 0.2 percent times the amount that the city's population exceeds the minimum threshold in either of the first two sentencesnew text end .
deleted text begin (d)deleted text end new text begin (e)new text end The city revenue need cannot be less than zero.
deleted text begin (e)deleted text end new text begin (f)new text end For calendar year deleted text begin 2005deleted text end new text begin 2015new text end and subsequent years, the city revenue need for a city, as determined in paragraphs (a) to deleted text begin (d)deleted text end new text begin (e)new text end , is multiplied by the ratio of the annual implicit price deflator for government consumption expenditures and gross investment for state and local governments as prepared by the United States Department of Commerce, for the most recently available year to the deleted text begin 2003deleted text end new text begin 2013new text end implicit price deflator for state and local government purchases.
new text begin This section is effective for aids payable in calendar year 2014 and thereafter. new text end
deleted text begin (a) "City jobs base" for a city with a population of 5,000 or more is equal to the product of (1) $25.20, (2) the number of jobs per capita in the city, and (3) its population. For cities with a population less than 5,000, the city jobs base is equal to zero. For a city receiving aid under subdivision 36, paragraph (k), its city jobs base is reduced by the lesser of 36 percent of the amount of aid received under that paragraph or $1,000,000. No city's city jobs base may exceed $4,725,000 under this paragraph. deleted text end
deleted text begin (b) For calendar year 2010 and subsequent years, the city jobs base for a city, as determined in paragraph (a), is multiplied by the ratio of the appropriation under section 477A.03, subdivision 2a, for the year in which the aid is paid to the appropriation under that section for aids payable in 2009. deleted text end
deleted text begin (c) For purposes of this subdivision,deleted text end "Jobs per capita in the city" means (1) the average annual number of employees in the city based on the data from the Quarterly Census of Employment and Wages, as reported by the Department of Employment and Economic Development, for the most recent calendar year available deleted text begin as of May 1, 2008deleted text end new text begin November 1 of every odd-numbered yearnew text end , divided by (2) the city's population for the same calendar year as the employment data. The commissioner of the Department of Employment and Economic Development shall certify to the city the average annual number of employees for each city by deleted text begin June 1, 2008deleted text end new text begin January 1, of every even-numbered year beginning with January 1, 2014new text end . A city may challenge an estimate under this paragraph by filing its specific objection, including the names of employers that it feels may have misreported data, in writing with the commissioner by deleted text begin June 20, 2008deleted text end new text begin December 1 of every odd-numbered yearnew text end . The commissioner shall make every reasonable effort to address the specific objection and adjust the data as necessary. The commissioner shall certify the estimates of the annual employment to the commissioner of revenue by deleted text begin July 15, 2008deleted text end new text begin January 1 of all even-numbered yearsnew text end , including any estimates still under objection. new text begin For aids payable in 2014, "jobs per capita" shall be based on the annual number of employees and population for calendar year 2010 without additional review.new text end
new text begin This section is effective for aids payable in calendar year 2014 and thereafter. new text end
new text begin "Peak population decline" is equal to 100 times the difference between one and the ratio of the city's current population, to the highest city population reported in a federal census from the 1970 census or later. "Peak population decline" shall not be less than zero. new text end
new text begin This section is effective for aids payable in calendar year 2014 and thereafter. new text end
new text begin For a city with a population of 10,000 or more, the sparsity adjustment is 100 for any city with an average population density less than 150 per square mile, according to the most recent federal census, and the sparsity adjustment is zero for all other cities. new text end
new text begin This section is effective for aids payable in calendar year 2014 and thereafter. new text end
deleted text begin In 2002, no town is eligible for a distribution under this subdivision. deleted text end new text begin In 2014 and thereafter, each town is eligible for a distribution under this subdivision equal to the product of (i) its agricultural property factor, (ii) its town area factor, (iii) its population factor, and (iv) 0.0045. As used in this subdivision, the following terms have the meanings given them: new text end
new text begin (1) "agricultural property factor" means the ratio of the adjusted net tax capacity of agricultural property located in a town, divided by the adjusted net tax capacity of all other property located in the town. The agricultural property factor cannot exceed eight; new text end
new text begin (2) "agricultural property" means property classified under section 273.13, as homestead and nonhomestead agricultural property, rural vacant land, and noncommercial seasonal recreational property; new text end
new text begin (3) "town area factor" means the most recent estimate of total acreage, not to exceed 50,000 acres, located in the township available as of July 1 in the aid calculation year, estimated or established by: new text end
new text begin (i) the United States Bureau of the Census; new text end
new text begin (ii) the State Land Management Information Center; or new text end
new text begin (iii) the secretary of state; and new text end
new text begin (4) "population factor" means the square root of the towns' population. new text end
new text begin If the sum of the aids payable to all towns under this subdivision exceeds the limit under section 477A.03, subdivision 2c, the distribution to each town must be reduced proportionately so that the total amount of aids distributed under this section does not exceed the limit in section 477A.03, subdivision 2c. new text end
new text begin This section is effective for aids payable in calendar year 2014 and thereafter. new text end
new text begin (a) For aids payable in 2014 only, the formula aid for a city is equal to the sum of (1) its 2013 certified aid and (2) the product of (i) the difference between its unmet need and its 2013 certified aid and (ii) the aid gap percentage. new text end
new text begin (b) For aids payable in 2015 and thereafter,new text end the formula aid for a city is equal to the sum of (1) its deleted text begin city jobs base, (2) its small city aid base, and (3) the need increase percentage multiplied by the average of its unmet need for the most recently available two yearsdeleted text end new text begin formula aid in the previous year and (2) the product of (i) the difference between its unmet need and its certified aid in the previous year under subdivision 9, and (ii) the aid gap percentagenew text end .
No city may have a formula aid amount less than zero. The deleted text begin need increasedeleted text end new text begin aid gapnew text end percentage must be the same for all cities.
The applicable deleted text begin need increasedeleted text end new text begin aid gapnew text end percentage must be calculated by the Department of Revenue so that the total of the aid under subdivision 9 equals the total amount available for aid under section 477A.03. Data used in calculating aids to cities under sections 477A.011 to 477A.013 shall be the most recently available data as of January 1 in the year in which the aid is calculated deleted text begin except that the data used to compute "net levy" in subdivision 9 is the data most recently available at the time of the aid computationdeleted text end .
new text begin This section is effective for aids payable in calendar year 2014 and thereafter. new text end
(a) In calendar year deleted text begin 2013deleted text end new text begin 2014 new text end and thereafter, each city shall receive an aid distribution equal to the sum of (1) the city formula aid under subdivision 8, and (2) its deleted text begin city aid basedeleted text end new text begin aid adjustment under subdivision 13new text end .
deleted text begin (b) For aids payable in 2013 and 2014 only, the total aid in the previous year for any city shall mean the amount of aid it was certified to receive for aids payable in 2012 under this section. For aids payable in 2015 and thereafter, the total aid in the previous year for any city means the amount of aid it was certified to receive under this section in the previous payable year. deleted text end
deleted text begin (c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total aid for any city with a population of 2,500 or more may not be less than its total aid under this section in the previous year minus the lesser of $10 multiplied by its population, or ten percent of its net levy in the year prior to the aid distribution. deleted text end
deleted text begin (d)deleted text end new text begin (b) For aids payable in 2014 only, the total aid for a city may not be less than the amount it was certified to receive in 2013.new text end For aids payable in deleted text begin 2010deleted text end new text begin 2015new text end and thereafter, the total aid for a city deleted text begin with a population less than 2,500deleted text end must not be less than the amount it was certified to receive in the previous year minus the lesser of $10 multiplied by its population, or five percent of deleted text begin its 2003 certified aid amount. For aids payable in 2009 only, the total aid for a city with a population less than 2,500 must not be less than what it received under this section in the previous year unless its total aid in calendar year 2008 was aid under section 477A.011, subdivision 36, paragraph (s), in which case its minimum aid is zerodeleted text end new text begin its net levy in the year prior to the aid distributionnew text end .
deleted text begin (e) A city's aid loss under this section may not exceed $300,000 in any year in which the total city aid appropriation under section 477A.03, subdivision 2a, is equal or greater than the appropriation under that subdivision in the previous year, unless the city has an adjustment in its city net tax capacity under the process described in section 469.174, subdivision 28. deleted text end
deleted text begin (f) If a city's net tax capacity used in calculating aid under this section has decreased in any year by more than 25 percent from its net tax capacity in the previous year due to property becoming tax-exempt Indian land, the city's maximum allowed aid increase under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease resulting from the property becoming tax exempt. deleted text end
new text begin This section is effective for aids payable in calendar year 2014 and thereafter. new text end
new text begin (a) A city that received an aid base increase under Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (e), shall have its total aid under subdivision 9 increased by an amount equal to $150,000 for aids payable in 2014 through 2018. new text end
new text begin (b) A city that received an aid base increase under section 477A.011, subdivision 36, paragraph (r), shall have its total aid under subdivision 9 increased by an amount equal to $160,000 for aids payable in 2014 and thereafter. new text end
new text begin (c) A city that received a temporary aid increase under Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (o), shall have its total aid under subdivision 9 increased by an amount equal to $1,000,000 for aids payable in 2014 only. 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.
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.
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 For aids payable in 2013 only, a city that is located in an area deemed a disaster area during the month of April 2013, as defined in section 12A.02, subdivision 5, shall receive its December 26, 2013 payment with its July 20, 2013 payment.new text end
new text begin This section is effective for aids payable in calendar year 2013 and thereafter. new text end
For aids payable in deleted text begin 2013deleted text end new text begin 2014new text end deleted text begin and thereafterdeleted text end , the total aid paid under section 477A.013, subdivision 9, is deleted text begin $426,438,012deleted text end new text begin $507,598,012. The total aid paid under section 477A.013, subdivision 9, is $509,098,012 for aids payable in 2015. For aids payable in 2016 and thereafter, the total aid paid under section 477A.013, subdivision 9, is $511,598,012new text end .
new text begin This section is effective for aids payable in calendar year 2014 and thereafter. new text end
(a) For aids payable in deleted text begin 2013deleted text end new text begin 2014new text end and thereafter, the total aid payable under section 477A.0124, subdivision 3, is deleted text begin $80,795,000deleted text end new text begin $100,795,000new text end . Each calendar year, $500,000 new text begin of this appropriation new text end 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. deleted text begin For calendar year 2004, the amount shall be in addition to the payments authorized under section 477A.0124, subdivision 1. For calendar year 2005 and subsequent years, the amount shall be deducted from the appropriation under this paragraph.deleted text end 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 2013deleted text end new text begin 2014new text end and thereafter, the total aid under section 477A.0124, subdivision 4, is deleted text begin $84,909,575deleted text end new text begin $104,909,575new text end . The deleted text begin commissioner of management and budget shall bill thedeleted text end commissioner of revenue new text begin shall transfer to the commissioner of management and budget $207,000 annually new text end for the cost of preparation of local impact notes as required by section 3.987, deleted text begin not to exceed $207,000 in fiscal year 2004 and thereafterdeleted text end new text begin and other local government activitiesnew text end . The deleted text begin commissioner of education shall bill thedeleted text end commissioner of revenue deleted text begin for the cost of preparation of local impact notes for school districts as required by section 3.987, not to exceed $7,000 in fiscal year 2004 and thereafterdeleted text end new text begin 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 3.987new text end . The commissioner of revenue shall deduct the amounts deleted text begin billeddeleted text end new text begin transferrednew text end under this paragraph from the appropriation under this paragraph. The amounts deleted text begin deducteddeleted text end new text begin transferrednew text end are appropriated to the commissioner of management and budget and the commissioner of education deleted text begin for the preparation of local impact notesdeleted text end new text begin respectivelynew text end .
new text begin This section is effective for aid payable in 2014 and thereafter. new text end
new text begin For aids payable in 2014, the total aids paid under section 477A.013, subdivision 1, is limited to $10,000,000. For aids payable in 2015 and thereafter, the total aids paid under section 477A.013, subdivision 1, is limited to the amount certified to be paid in the previous year. new text end
new text begin This section is effective for aids payable in calendar year 2014 and thereafter. new text end
new text begin On or before November 1, 2016, and the first day of each November thereafter, the commissioner shall pay to the city of Minneapolis an amount equal to 40 percent of the city's otherwise required levy to pay its general obligation library referendum bonds for the following calendar year. The levy excludes any amount to pay bonds, other than refunding bonds, issued after May 1, 2013. An amount sufficient to pay the aid under this section is appropriated from the general fund to the commissioner of revenue. new text end
new text begin The purposes of sections 477A.11 to 477A.14 are: new text end
new text begin (1) to compensate local units of government for the loss of tax base from state ownership of land and the need to provide services for state land; new text end
new text begin (2) to address the disproportionate impact of state land ownership on local units of government with a large proportion of state land; and new text end
new text begin (3) to address the need to manage state lands held in trust for the local taxing districts. new text end
"Acquired natural resources land" means:
(1) deleted text begin anydeleted text end landnew text begin , other than wildlife management land,new text end presently administered by the commissioner in which the state acquired by purchase, condemnation, or gift, a fee title interest in lands which were previously privately owned; and
(2) lands acquired by the state under chapter 84A that are designated as state parks, state recreation areas, scientific and natural areas, or wildlife management areas.
new text begin This section is effective for aids payable in calendar year 2013 and thereafter. new text end
"Other natural resources land" means any deleted text begin otherdeleted text end landnew text begin , other than acquired natural resource land or wildlife management land,new text end presently owned in fee title by the state and administered by the commissioner, or any tax-forfeited land, other than platted lots within a city or those lands described under subdivision 3, clause (2), which is owned by the state and administered by the commissioner or by the county in which it is located.
new text begin This section is effective for aids payable in calendar year 2013 and thereafter. new text end
new text begin "Military game refuge" means land owned in fee by another state agency for military purposes and designated as a state game refuge under section 97A.085. new text end
new text begin This section is effective for aids payable in calendar year 2013 and thereafter. new text end
new text begin "Transportation wetland" means land administered by the Department of Transportation in which the state acquired, by purchase from a private owner, a fee title interest in over 500 acres of land within a county to replace wetland losses from transportation projects. new text end
new text begin This section is effective for aids payable in calendar year 2013 and thereafter. new text end
new text begin "Wildlife management land" means land administered by the commissioner in which the state acquired, from a private owner by purchase, condemnation, or gift, a fee interest under the authority granted in chapter 94 or 97A for wildlife management purposes and actually used as a wildlife management area. new text end
new text begin This section is effective for aids payable in calendar year 2013 and thereafter. new text end
deleted text begin (a) As an offset for expenses incurred by counties and towns in support of natural resources lands,deleted text end The following amounts are annually appropriated to the commissioner of natural resources from the general fund for transfer to the commissioner of revenue. The commissioner of revenue shall pay the transferred funds to counties as required by sections 477A.11 to 477A.14. The amountsnew text begin , based on the acreage as of July 1 of each year prior to the payment year,new text end are:
(1) deleted text begin for acquired natural resources land,deleted text end $5.133 multiplied by the total number of acres of acquired natural resources land or, at the county's option three-fourths of one percent of the appraised value of all acquired natural resources land in the county, whichever is greater;
(2) new text begin $5.133, multiplied by the total number of acres of transportation wetland or, at the county's option, three-fourths of one percent of the appraised value of all acquired natural resources land in the county, whichever is greater;new text end
new text begin (3) three-fourths of one percent of the appraised value of all wildlife management land in the county; new text end
new text begin (4) 50 percent of the dollar amount as determined under clause (1), multiplied by the number of acres of military refuge land in the county; new text end
deleted text begin $1.283deleted text end new text begin (5) $1.50, new text end multiplied by the number of acres of county-administered other natural resources landnew text begin in the countynew text end ;
deleted text begin (3) $1.283deleted text end new text begin (6) $5.133, new text end multiplied by the total number of acres of land utilization project landnew text begin in the countynew text end ; deleted text begin anddeleted text end
deleted text begin (4) 64.2 centsdeleted text end new text begin (7) $1.50, new text end multiplied by the number of acres of commissioner-administered other natural resources land deleted text begin locateddeleted text end in deleted text begin eachdeleted text end new text begin thenew text end county deleted text begin as of July 1 of each year prior to the payment year.deleted text end new text begin ; andnew text end
new text begin (8) without regard to acreage, $300,000 for local assessments under section 84A.55, subdivision 9. new text end
deleted text begin (b) The amount determined under paragraph (a), clause (1), is payable for land that is acquired from a private owner and owned by the Department of Transportation for the purpose of replacing wetland losses caused by transportation projects, but only if the county contains more than 500 acres of such land at the time the certification is made under subdivision 2. deleted text end
new text begin This section is effective for aids payable in calendar year 2013 and thereafter. new text end
deleted text begin Lands for which payments in lieu are made pursuant to section 97A.061, subdivision 3, and Laws 1973, chapter 567, shall not be eligible for payments under this section.deleted text end Each county auditor shall certify to the Department of Natural Resources during July of each year prior to the payment year the number of acres of county-administered other natural resources land within the county. The Department of Natural resources may, in addition to the certification of acreage, require descriptive lists of land so certified. The commissioner of natural resources shall determine and certify to the commissioner of revenue by March 1 of the payment year:
(1) the number of acres and most recent appraised value of acquired natural resources landnew text begin , wildlife management land, and military refuge landnew text end within each county;
(2) the number of acres of commissioner-administered natural resources land within each county;
(3) the number of acres of county-administered other natural resources land within each county, based on the reports filed by each county auditor with the commissioner of natural resources; and
(4) the number of acres of land utilization project land within each county.
The commissioner of transportation shall determine and certify to the commissioner of revenue by March 1 of the payment year the number of acres of deleted text begin landdeleted text end new text begin transportation wetlandnew text end and the appraised value of the land deleted text begin described in subdivision 1, paragraph (b)deleted text end , but only if it exceeds 500 acresnew text begin in a countynew text end .
The commissioner of revenue shall determine the distributions provided for in this section using the number of acres and appraised values certified by the commissioner of natural resources and the commissioner of transportation by March 1 of the payment year.
new text begin This section is effective for aids payable in calendar year 2013 and thereafter. new text end
For the purposes of this section, the appraised value of acquired natural resources land is the purchase price deleted text begin for the first five years after acquisitiondeleted text end new text begin until the next six-year appraisal required under this subdivisionnew text end . The appraised value of acquired natural resources land received as a donation is the value determined for the commissioner of natural resources by a licensed appraiser, or the county assessor's estimated market value if no appraisal is done. The appraised value must be determined by the county assessor every deleted text begin fivedeleted text end new text begin sixnew text end years deleted text begin after the land is acquireddeleted text end .new text begin All reappraisals shall be done in the same year as county assessors are required to assess exempt land under section 273.18.new text end
new text begin This section is effective for aids payable in calendar year 2013 and thereafter. new text end
Except as provided in deleted text begin subdivision 2 or in section 97A.061, subdivision 5deleted text end new text begin subdivisions 2 and 3new text end , 40 percent of the total payment to the county shall be deposited in the county general revenue fund to be used to provide property tax levy reduction. The remainder shall be distributed by the county in the following priority:
(a) 64.2 centsnew text begin , new text end for each acre of county-administered other natural resources land shall be deposited in a resource development fund to be created within the county treasury for use in resource development, forest management, game and fish habitat improvement, and recreational development and maintenance of county-administered other natural resources land. Any county receiving less than $5,000 annually for the resource development fund may elect to deposit that amount in the county general revenue fund;
(b) from the funds remaining, within 30 days of receipt of the payment to the county, the county treasurer shall pay each organized township deleted text begin 51.3 cents for each acre of acquired natural resources land and each acre of land described in section 477A.12, subdivision 1, paragraph (b), and 12.8 cents for each acre of other natural resources land and each acre of land utilization project land located within its boundariesdeleted text end new text begin ten percent of the amount received under section 477A.12, subdivision 1, clauses (1), (2), and (5) to (7)new text end . Payments for natural resources lands not located in an organized township shall be deposited in the county general revenue fund. Payments to counties and townships pursuant to this paragraph shall be used to provide property tax levy reduction, except that of the payments for natural resources lands not located in an organized township, the county may allocate the amount determined to be necessary for maintenance of roads in unorganized townships. Provided that, if the total payment to the county pursuant to section 477A.12 is not sufficient to fully fund the distribution provided for in this clause, the amount available shall be distributed to each township and the county general revenue fund on a pro rata basis; and
(c) any remaining funds shall be deposited in the county general revenue fund. Provided that, if the distribution to the county general revenue fund exceeds $35,000, the excess shall be used to provide property tax levy reduction.
new text begin This section is effective for aids payable in calendar year 2013 and thereafter. new text end
new text begin (a) The county treasurer shall allocate the payment for wildlife management land and military game refuge land among the county, towns, and school districts on the same basis as if the payments were taxes on the land received in the year. Payment of a town's or a school district's allocation must be made by the county treasurer to the town or school district within 30 days of receipt of the payment to the county. The county's share of the payment shall be deposited in the county general revenue fund. new text end
new text begin (b) The county treasurer of a county with a population over 39,000, but less than 42,000, in the 1950 federal census shall allocate the payment only among the towns and school districts on the same basis as if the payments were taxes on the lands received in the current year. new text end
new text begin (c) If a town received a payment in calendar year 2006 or thereafter under this subdivision, and subsequently incorporated as a city, the city shall continue to receive any future year's allocations of wildlife land payments that would have been made to the town had it not incorporated, provided that the payments shall terminate if the governing body of the city passes an ordinance that prohibits hunting within the boundaries of the city. new text end
new text begin This section is effective for aids payable in calendar year 2013 and thereafter. new text end
deleted text begin $600,000deleted text end new text begin $1,200,000new text end is appropriated annually from the general fund to the commissioner of revenue to be used to make payments to compensate for the loss of property tax revenue related to the trust conversion application of the Shooting Star Casino. The commissioner shall pay the county of Mahnomen, deleted text begin $450,000deleted text end new text begin $900,000new text end ; the city of Mahnomen, deleted text begin $80,000deleted text end new text begin $160,000new text end ; and Independent School District No. 432, Mahnomen, deleted text begin $70,000deleted text end new text begin $140,000new text end . The payments shall be made on July 20, of deleted text begin 2008deleted text end new text begin 2013new text end and each subsequent year.
new text begin This section is effective for aids payable in calendar year 2013 and thereafter. new text end
new text begin Lands that no longer qualify as forest land under Minnesota Statutes, section 290C.02, subdivision 6, item (iii), are released from the covenant required under Minnesota Statutes, section 290C.04. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin A person who elected to terminate participation in the sustainable forest incentive program, as provided in Laws 2011, First Special Session chapter 7, article 6, section 12, may reenroll lands for which the claimant terminated participation and be eligible for a payment in October 2013. A person must apply for reenrollment under this section within 60 days after the effective date of this section. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin (a) new text end new text begin Minnesota Statutes 2012, sections 477A.011, subdivisions 2a, 19, 29, 31, 32, 33, 36, 39, 40, and 41; 477A.013, subdivisions 11 and 12; 477A.0133; and 477A.0134, new text end new text begin are repealed. new text end
new text begin (b) Minnesota Statutes 2012, section 97A.061, new text end new text begin and new text end new text begin Laws 1973, chapter 567, section 7, as amended by Laws 1977, chapter 403, section 12, new text end new text begin are repealed on July 1, 2013. new text end
new text begin This section is effective for aids payable in calendar year 2014 and thereafter. new text end
new text begin (a) An eligible district's initial achievement and integration revenue equals the sum of (1) $350 times the district's adjusted pupil units for that year times the ratio of the district's enrollment of protected students for the previous school year to total enrollment for the previous school year and (2) the greater of zero or 66 percent of the difference between the district's integration revenue for fiscal year 2013 and the district's integration revenue for fiscal year 2014 under clause (1). new text end
new text begin (b) In each year, 0.3 percent of each district's initial achievement and integration revenue is transferred to the department for the oversight and accountability activities required under this section and section 124D.861. new text end
new text begin An eligible school district's maximum incentive revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district must be implementing a voluntary plan to reduce racial and economic enrollment disparities through intradistrict and interdistrict activities that have been approved as a part of the district's achievement and integration plan. new text end
new text begin Achievement and integration revenue equals the sum of initial achievement and integration revenue and incentive revenue. new text end
new text begin For fiscal year 2015 and later, a district's achievement and integration aid equals 70 percent of its achievement and integration revenue. new text end
new text begin A district's achievement and integration levy equals its achievement and integration revenue times 30 percent. For Special School District No. 1, Minneapolis; Independent School District No. 625, St. Paul; and Independent School District No. 709, Duluth, 100 percent of the levy certified under this subdivision is shifted into the prior calendar year for purposes of sections 123B.75, subdivision 5, and 127A.441. new text end
new text begin (a) At least 80 percent of a district's achievement and integration revenue received under this section must be used for innovative and integrated learning environments, school enrollment choices, family engagement activities, and other approved programs providing direct services to students. new text end
new text begin (b) Up to 20 percent of the revenue may be used for professional development and staff development activities and placement services. new text end
new text begin (c) No more than ten percent of the total amount of revenue may be spent on administrative services. new text end
new text begin Integration revenue received under this section must be reserved and used only for the programs authorized in subdivision 2. new text end
new text begin (a) The commissioner must review the results of each district's integration and achievement plan by August 1 at the end of the third year of implementing the plan and determine if the district met its goals. new text end
new text begin (b) If a district met its goals, it may submit a new three-year plan to the commissioner for review. new text end
new text begin (c) If a district has not met its goals, the commissioner must: new text end
new text begin (1) develop a district improvement plan and timeline, in consultation with the affected district, that identifies strategies and practices designed to meet the district's goals under this section and section 120B.11; and new text end
new text begin (2) use up to 20 percent of the district's integration revenue, until the district's goals are reached, to implement the improvement plan. new text end
new text begin This section is effective for revenue for fiscal year 2014 and later. Subdivision 5 is effective for taxes payable in 2014 only. new text end
new text begin (a) For fiscal years 2013 and 2014, new text end the general education revenue for each district equals the sum of the district's basic revenue, extended time revenue, gifted and talented revenue, small schools revenue, basic skills revenue, deleted text begin training and experience revenue,deleted text end secondary sparsity revenue, elementary sparsity revenue, transportation sparsity revenue, total operating capital revenue, equity revenue, alternative teacher compensation revenue, and transition revenue.
new text begin (b) For fiscal year 2015 and later, the general education revenue for each district equals the sum of the district's basic revenue, extended time revenue, gifted and talented revenue, declining enrollment revenue, location equity revenue, small schools revenue, basic skills revenue, secondary sparsity revenue, elementary sparsity revenue, transportation sparsity revenue, total operating capital revenue, equity revenue, pension adjustment revenue, and transition revenue. new text end
new text begin (a) For a school district with any of its area located within the seven-county metropolitan area, location equity revenue equals $424 times the adjusted pupil units of the district for that school year. new text end
new text begin (b) For all other school districts with more than 2,000 pupils in adjusted average daily membership for the fiscal year ending in the year before the levy is certified, location equity revenue equals $212 times the adjusted pupil units of the district for that year. new text end
new text begin (c) A district's location equity levy equals its location equity revenue times the lesser of one or the ratio of its referendum market value per resident pupil unit to $510,000. The location equity revenue levy must be spread on referendum market value. new text end
new text begin (d) A district's location equity aid equals its location equity revenue less its location equity levy, times the ratio of the actual amount levied to the permitted levy. new text end
new text begin (e) A school district may elect not to participate in the location equity revenue program by a board vote taken prior to September 1 of the fiscal year before the fiscal year for which the decision not to participate becomes effective. The board resolution must state which fiscal years the district will not participate. A copy of the board resolution to not participate must be submitted to the commissioner. new text end
new text begin This section is effective for revenue for fiscal year 2015 and later. new text end
new text begin (a) new text end For fiscal years deleted text begin 2007deleted text end new text begin 2013new text end and deleted text begin laterdeleted text end new text begin 2014 onlynew text end , a district's general education aid is the sum of the following amounts:
(1) general education revenue, excluding equity revenue, total operating capital revenue, alternative teacher compensation revenue, and transition revenue;
(2) operating capital aid under section 126C.10, subdivision 13b;
(3) equity aid under section 126C.10, subdivision 30;
(4) alternative teacher compensation aid under section 126C.10, subdivision 36;
(5) transition aid under section 126C.10, subdivision 33;
(6) shared time aid under section 126C.01, subdivision 7;
(7) referendum aid under section 126C.17, subdivisions 7 and 7a; and
(8) online learning aid according to section 124D.096.
new text begin (b) For fiscal year 2015 and later, a district's general education aid equals: new text end
new text begin (1) general education revenue, excluding operating capital revenue, equity revenue, location equity revenue, and transition revenue, minus the student achievement levy, multiplied times the ratio of the actual amount of student achievement levy levied to the permitted student achievement levy; plus new text end
new text begin (2) equity aid under section 126C.10, subdivision 30; plus new text end
new text begin (3) transition aid under section 126C.10, subdivision 33; plus new text end
new text begin (4) shared time aid under section 126C.10, subdivision 7; plus new text end
new text begin (5) referendum aid under section 126C.17, subdivisions 7 and 7a; new text end
new text begin (6) online learning aid under section 124D.096; plus new text end
new text begin (7) location equity aid according to section 126C.10, subdivision 2d, paragraph (d). new text end
deleted text begin (a) For fiscal year 2003 and later, a district's initial referendum revenue allowance equals the sum of the allowance under section 126C.16, subdivision 2, plus any additional allowance per resident marginal cost pupil unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later, plus the referendum conversion allowance approved under subdivision 13, minus $415. For districts with more than one referendum authority, the reduction must be computed separately for each authority. The reduction must be applied first to the referendum conversion allowance and next to the authority with the earliest expiration date. A district's initial referendum revenue allowance may not be less than zero. deleted text end
deleted text begin (b) For fiscal year 2003, a district's referendum revenue allowance equals the initial referendum allowance plus any additional allowance per resident marginal cost pupil unit authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for fiscal year 2003 and later. deleted text end
deleted text begin (c) For fiscal year 2004 and later, a district's referendum revenue allowance equals the sum of: deleted text end
deleted text begin (1) the product of (i) the ratio of the resident marginal cost pupil units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002, section 126C.05, to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial referendum allowance plus any additional allowance per resident marginal cost pupil unit authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal year 2003 and later, plus deleted text end
deleted text begin (2) any additional allowance per resident marginal cost pupil unit authorized under subdivision 9 after May 30, 2003, for fiscal year 2005 and later. deleted text end
new text begin (a) A district's initial referendum allowance for fiscal year 2015 equals the result of the following calculations: new text end
new text begin (1) multiply the referendum allowance the district would have received for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 1, based on elections held before July 1, 2013, by the resident marginal cost pupil units the district would have counted for fiscal year 2015 under Minnesota Statutes 2012, section 126C.05; new text end
new text begin (2) add to the result of clause (1) the adjustment the district would have received under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and (c), based on elections held before July 1, 2013; new text end
new text begin (3) divide the result of clause (2) by the district's adjusted pupil units for fiscal year 2015; and new text end
new text begin (4) if the result of clause (3) is less than zero, set the allowance to zero. new text end
new text begin (b) A district's referendum allowance equals the sum of the district's initial referendum allowance for fiscal year 2015, plus any additional referendum allowance per adjusted pupil unit authorized after June 30, 2013, minus (i) the location equity revenue subtraction, and (ii) any allowances expiring in fiscal year 2016 or later, provided that the allowance may not be less than zero. For a district with more than one referendum allowance for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, the allowance calculated under paragraph (a) must be divided into components such that the same percentage of the district's allowance expires at the same time as the old allowances would have expired under Minnesota Statutes 2012, section 126C.17. new text end
new text begin (c) For purposes of this subdivision, a district's location equity revenue subtraction equals $424 for a district receiving location equity revenue under section 126C.10, subdivision 2d, paragraph (a), $212 for a district receiving location equity revenue under section 126C.10, subdivision 2d, paragraph (b), and zero for all other school districts. new text end
(a) Notwithstanding subdivision 1, for fiscal year deleted text begin 2007deleted text end new text begin 2015new text end and later, a district's referendum allowance must not exceed deleted text begin the greater of:deleted text end
deleted text begin (1) the sum of: (i) a district's referendum allowance for fiscal year 1994 times 1.177 times the annual inflationary increase as calculated under paragraph (b) plus (ii) its referendum conversion allowance for fiscal year 2003, minus (iii) $215; deleted text end
deleted text begin (2) the greater of (i): 26 percent of the formula allowance or (ii) $1,294 timesdeleted text end the annual inflationary increase as calculated under paragraph (b)deleted text begin ; ordeleted text end new text begin times the greatest of:new text end
new text begin (1) $1,845; new text end
new text begin (2) the sum of the referendum revenue the district would have received for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 4, based on elections held before July 1, 2013, and the adjustment the district would have received under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and (c), based on elections held before July 1, 2013, divided by the district's adjusted pupil units for fiscal year 2015; or new text end
new text begin (3) the product of the referendum allowance limit the district would have received for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 2, and the resident marginal cost pupil units the district would have received for fiscal year 2015 under Minnesota Statutes 2012, section 126C.05, subdivision 6, plus the adjustment the district would have received under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and (c), based on elections held before July 1, 2013, divided by the district's adjusted pupil units for fiscal year 2015; minus $424 for a district receiving location equity revenue under section 126C.10, subdivision 2d, paragraph (a), minus $212 for a district receiving location equity revenue under section 126C.10, subdivision 2d, paragraph (b), or new text end
deleted text begin (3)deleted text end new text begin (4)new text end for a newly reorganized district created after July 1, deleted text begin 2006deleted text end new text begin 2013new text end , the referendum revenue authority for each reorganizing district in the year preceding reorganization divided by its deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil units for the year preceding reorganization.
(b) For purposes of this subdivision, for fiscal year deleted text begin 2005deleted text end new text begin 2016new text end and later, "inflationary increase" means one plus the percentage change in the Consumer Price Index for urban consumers, as prepared by the United States Bureau of Labor Standards, for the current fiscal year to fiscal year deleted text begin 2004deleted text end new text begin 2015new text end . For fiscal deleted text begin years 2009deleted text end new text begin year 2016new text end and later, for purposes of paragraph (a), clause deleted text begin (1)deleted text end new text begin (3)new text end , the inflationary increase equals deleted text begin the inflationary increase for fiscal year 2008 plusdeleted text end one-fourth of the percentage increase in the formula allowance for that year compared with the formula allowance for fiscal year deleted text begin 2008deleted text end new text begin 2015new text end .
A district that qualifies for sparsity revenue under section 126C.10 is not subject to a referendum allowance limit.
The total referendum revenue for each district equals the district's referendum allowance times the deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil units for the school year.
(a) deleted text begin For fiscal year 2003 and later,deleted text end A district's referendum equalization revenue equals the sum of the first tier referendum equalization revenue and the second tier referendum equalization revenuenew text begin , and the third tier referendum equalization revenuenew text end .
(b) A district's first tier referendum equalization revenue equals the district's first tier referendum equalization allowance times the district's deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil units for that year.
(c) deleted text begin For fiscal year 2006, a district's first tier referendum equalization allowance equals the lesser of the district's referendum allowance under subdivision 1 or $500. For fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser of the district's referendum allowance under subdivision 1 or $600.deleted text end
deleted text begin For fiscal year 2008 and later,deleted text end A district's first tier referendum equalization allowance equals the lesser of the district's referendum allowance under subdivision 1 or deleted text begin $700deleted text end new text begin $300new text end .
(d) A district's second tier referendum equalization revenue equals the district's second tier referendum equalization allowance times the district's deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil units for that year.
(e) deleted text begin For fiscal year 2006, a district's second tier referendum equalization allowance equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent of the formula allowance, minus the district's first tier referendum equalization allowance. For fiscal year 2007 and later,deleted text end A district's second tier referendum equalization allowance equals the lesser of the district's referendum allowance under subdivision 1 or deleted text begin 26 percent of the formula allowancedeleted text end new text begin $760new text end , minus the district's first tier referendum equalization allowance.
(f) deleted text begin Notwithstanding paragraph (e), the second tier referendum allowance for a district qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's referendum allowance under subdivision 1 minus the district's first tier referendum equalization allowance.deleted text end new text begin A district's third tier referendum equalization revenue equals the district's third tier referendum equalization allowance times the district's adjusted pupil units for that year.new text end
new text begin (g) A district's third tier referendum equalization allowance equals the lesser of the district's referendum allowance under subdivision 1 or 25 percent of the formula allowance, minus the sum of the district's first tier referendum equalization allowance and second tier referendum equalization allowance. new text end
new text begin (h) Notwithstanding paragraph (g), the third tier referendum allowance for a district qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's referendum allowance under subdivision 1 minus the sum of the district's first tier referendum equalization allowance and second tier referendum equalization allowance. new text end
(a) For fiscal year 2003 and later, a district's referendum equalization levy equals the sum of the first tier referendum equalization levy deleted text begin anddeleted text end the second tier referendum equalization levynew text begin , and the third tier referendum equalization levynew text end .
(b) A district's first tier referendum equalization levy equals the district's first tier referendum equalization revenue times the lesser of one or the ratio of the district's referendum market value per resident deleted text begin marginal costdeleted text end pupil unit to deleted text begin $476,000deleted text end new text begin $880,000new text end .
(c) A district's second tier referendum equalization levy equals the district's second tier referendum equalization revenue times the lesser of one or the ratio of the district's referendum market value per resident deleted text begin marginal costdeleted text end pupil unit to deleted text begin $270,000deleted text end new text begin $510,000new text end .
new text begin (d) A district's third tier referendum equalization levy equals the district's third tier referendum equalization revenue times the lesser of one or the ratio of the district's referendum market value per resident pupil unit to $290,000. new text end
(a) A district's referendum equalization aid equals the difference between its referendum equalization revenue and levy.
(b) If a district's actual levy for first deleted text begin ordeleted text end new text begin ,new text end secondnew text begin , or thirdnew text end tier referendum equalization revenue is less than its maximum levy limit for that tier, aid shall be proportionately reduced.
(c) Notwithstanding paragraph (a), the referendum equalization aid for a district, where the referendum equalization aid under paragraph (a) exceeds 90 percent of the referendum revenue, must not exceed deleted text begin 26deleted text end new text begin 25new text end percent of the formula allowance times the district's deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil units. A district's referendum levy is increased by the amount of any reduction in referendum aid under this paragraph.
For each school district that had a referendum allowance for fiscal year 2002 exceeding $415, for each separately authorized referendum levy, the commissioner of revenue, in consultation with the commissioner of education, shall certify the amount of the referendum levy in taxes payable year 2001 attributable to the portion of the referendum allowance exceeding $415 levied against property classified as class 2, noncommercial 4c(1), or 4c(4), under section 273.13, excluding the portion of the tax paid by the portion of class 2a property consisting of the house, garage, and surrounding one acre of land. The resulting amount must be used to reduce the district's referendum levy amount otherwise determined, and must be paid to the district each year that the referendum authority remains in effect, is renewed, or new referendum authority is approved. The aid payable under this subdivision must be subtracted from the district's referendum equalization aid under subdivision 7. The referendum equalization aid after the subtraction must not be less than zero.
new text begin (a) Notwithstanding subdivision 7, a district's referendum equalization aid for fiscal year 2015 must not be less than the sum of the referendum equalization aid the district would have received for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 7, and the adjustment the district would have received under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and (c). new text end
new text begin (b) Notwithstanding subdivision 7, referendum equalization aid for fiscal year 2016 and later, for a district qualifying for additional aid under paragraph (a) for fiscal year 2015, must not be less than the product of (1) the district's referendum equalization aid for fiscal year 2015, times (2) the lesser of one or the ratio of the district's referendum revenue for that school year to the district's referendum revenue for fiscal year 2015, times (3) the lesser of one or the ratio of the district's referendum market value used for fiscal year 2015 referendum equalization calculations to the district's referendum market value used for that year's referendum equalization calculations. new text end
Each year, a district may levy an amount equal to the difference between its total referendum revenue according to subdivision 4 and its referendum equalization revenue according to subdivision 5.
(a) The revenue authorized by section 126C.10, subdivision 1, may be increased in the amount approved by the voters of the district at a referendum called for the purpose. The referendum may be called by the board. The referendum must be conducted one or two calendar years before the increased levy authority, if approved, first becomes payable. Only one election to approve an increase may be held in a calendar year. Unless the referendum is conducted by mail under subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the first Monday in November. The ballot must state the maximum amount of the increased revenue per deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil unit. The ballot may state a schedule, determined by the board, of increased revenue per deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil unit that differs from year to year over the number of years for which the increased revenue is authorized or may state that the amount shall increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may state that existing referendum levy authority is expiring. In this case, the ballot may also compare the proposed levy authority to the existing expiring levy authority, and express the proposed increase as the amount, if any, over the expiring referendum levy authority. The ballot must designate the specific number of years, not to exceed ten, for which the referendum authorization applies. The ballot, including a ballot on the question to revoke or reduce the increased revenue amount under paragraph (c), must abbreviate the term "per deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil unit" as "per pupil." The notice required under section 275.60 may be modified to read, in cases of renewing existing levies at the same amount per pupil as in the previous year:
"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS SCHEDULED TO EXPIRE."
The ballot may contain a textual portion with the information required in this subdivision and a question stating substantially the following:
"Shall the increase in the revenue proposed by (petition to) the board of ........., School District No. .., be approved?"
If approved, an amount equal to the approved revenue per deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil unit times the deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil units for the school year beginning in the year after the levy is certified shall be authorized for certification for the number of years approved, if applicable, or until revoked or reduced by the voters of the district at a subsequent referendum.
(b) The board must prepare and deliver by first class mail at least 15 days but no more than 30 days before the day of the referendum to each taxpayer a notice of the referendum and the proposed revenue increase. The board need not mail more than one notice to any taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be those shown to be owners on the records of the county auditor or, in any county where tax statements are mailed by the county treasurer, on the records of the county treasurer. Every property owner whose name does not appear on the records of the county auditor or the county treasurer is deemed to have waived this mailed notice unless the owner has requested in writing that the county auditor or county treasurer, as the case may be, include the name on the records for this purpose. The notice must project the anticipated amount of tax increase in annual dollars for typical residential homesteads, agricultural homesteads, apartments, and commercial-industrial property within the school district.
The notice for a referendum may state that an existing referendum levy is expiring and project the anticipated amount of increase over the existing referendum levy in the first year, if any, in annual dollars for typical residential homesteads, agricultural homesteads, apartments, and commercial-industrial property within the district.
The notice must include the following statement: "Passage of this referendum will result in an increase in your property taxes." However, in cases of renewing existing levies, the notice may include the following statement: "Passage of this referendum extends an existing operating referendum at the same amount per pupil as in the previous year."
(c) A referendum on the question of revoking or reducing the increased revenue amount authorized pursuant to paragraph (a) may be called by the board. A referendum to revoke or reduce the revenue amount must state the amount per resident marginal cost pupil unit by which the authority is to be reduced. Revenue authority approved by the voters of the district pursuant to paragraph (a) must be available to the school district at least once before it is subject to a referendum on its revocation or reduction for subsequent years. Only one revocation or reduction referendum may be held to revoke or reduce referendum revenue for any specific year and for years thereafter.
(d) The approval of 50 percent plus one of those voting on the question is required to pass a referendum authorized by this subdivision.
(e) At least 15 days before the day of the referendum, the district must submit a copy of the notice required under paragraph (b) to the commissioner and to the county auditor of each county in which the district is located. Within 15 days after the results of the referendum have been certified by the board, or in the case of a recount, the certification of the results of the recount by the canvassing board, the district must notify the commissioner of the results of the referendum.
new text begin Notwithstanding subdivision 9, a school district may convert up to $300 per adjusted pupil unit of referendum authority from voter approved to board approved by a board vote. A district with less than $300 per adjusted pupil unit of referendum authority may authorize new referendum authority up to the difference between $300 per adjusted pupil unit and the district's referendum authority. The board may authorize this levy for up to five years and may subsequently reauthorize that authority in increments of up to five years. new text end
A school referendum levy must be levied against the referendum market value of all taxable property as defined in section 126C.01, subdivision 3. Any referendum levy amount subject to the requirements of this subdivision must be certified separately to the county auditor under section 275.07.
(a) Except for a referendum held under paragraph (b), any referendum under this section held on a day other than the first Tuesday after the first Monday in November must be conducted by mail in accordance with section 204B.46. Notwithstanding subdivision 9, paragraph (b), to the contrary, in the case of a referendum conducted by mail under this paragraph, the notice required by subdivision 9, paragraph (b), must be prepared and delivered by first-class mail at least 20 days before the referendum.
(b) In addition to the referenda allowed in subdivision 9, clause (a), the commissioner may grant authority to a district to hold a referendum on a different day if the district is in statutory operating debt and has an approved plan or has received an extension from the department to file a plan to eliminate the statutory operating debt.
(c) The commissioner must approve, deny, or modify each district's request for a referendum levy on a different day within 60 days of receiving the request from a district.
A school district that received supplemental or transition revenue in fiscal year 2002 may convert its supplemental revenue conversion allowance and transition revenue conversion allowance to additional referendum allowance under subdivision 1 for fiscal year 2003 and thereafter. A majority of the school board must approve the conversion at a public meeting before November 1, 2001. For a district with other referendum authority, the referendum conversion allowance approved by the board continues until the portion of the district's other referendum authority with the earliest expiration date after June 30, 2006, expires. For a district with no other referendum authority, the referendum conversion allowance approved by the board continues until June 30, 2012.
new text begin This section is effective for revenue for fiscal year 2015 and later. new text end
new text begin (a) Notwithstanding Minnesota Statutes, section 126C.17, subdivision 9, a school district may not authorize an increase to its operating referendum in fiscal year 2015. A school district may reauthorize an operating referendum that is expiring in fiscal year 2015. new text end
new text begin (b) Paragraph (a) shall not apply to a district if, prior to June 30, 2013, the board adopted a resolution to conduct a referendum in 2013. new text end
new text begin (c) Paragraph (a) shall not apply to a district if the district did not authorize an operating referendum in fiscal year 2014. new text end
new text begin (d) Paragraph (a) shall not apply to a district if the district is in statutory operating debt under Minnesota Statutes, section 123B.81, as of June 30, 2013, and has an approved plan with the Department of Education. new text end
The Board of Water and Soil Resources shall evaluate performance, financial, and activity information for each local water management entity. The board shall evaluate the entities' progress in accomplishing their adopted plans on a regular basisnew text begin as determined by the board based on budget and operations of the local water management entitynew text end , but not less than once every deleted text begin fivedeleted text end new text begin tennew text end years. The board shall maintain a summary of local water management entity performance on the board's Web site. Beginning February 1, 2008, and annually thereafter, the board shall provide an analysis of local water management entity performance to the chairs of the house of representatives and senate committees having jurisdiction over environment and natural resources policy.
The governing body of any county, municipality, or township may levy a tax in an amount required to implement sections 103B.301 to 103B.355new text begin or a comprehensive watershed management plan as defined in section 103B.3363new text end .
A county may levy amounts necessary to pay the reasonable deleted text begin increaseddeleted text end costs to soil and water conservation districts and watershed districts of administering and implementing priority programs identified in an approved and adopted plannew text begin or a comprehensive watershed management plan as defined in section 103B.3363new text end .
A base grant may be awarded to a county that provides a match utilizing a water implementation tax or other local source. A water implementation tax that a county intends to use as a match to the base grant must be levied at a rate new text begin sufficient to generate a minimum amount new text end determined by the board. The board may award performance-based grants to local units of government that are responsible for implementing elements of applicable portions of watershed management plans, comprehensive plans, local water management plans, or comprehensive watershed management plans, developed or amended, adopted and approved, according to chapter 103B, 103C, or 103D. Upon request by a local government unit, the board may also award performance-based grants to local units of government to carry out TMDL implementation plans as provided in chapter 114D, if the TMDL implementation plan has been incorporated into the local water management plan according to the procedures for approving comprehensive plans, watershed management plans, local water management plans, or comprehensive watershed management plans under chapter 103B, 103C, or 103D, or if the TMDL implementation plan has undergone a public review process. Notwithstanding section 16A.41, the board may award performance-based grants on an advanced basis.new text begin The fee authorized in section 40A.152 may be used as a local match or as a supplement to state funding to accomplish implementation of comprehensive plans, watershed management plans, local water management plans, or comprehensive watershed management plans under chapter 103B, 103C, or 103D.new text end
(a) The state board shall allocate deleted text begin at least 70 percent ofdeleted text end cost-sharing funds to areas with high priority erosion, sedimentation, or water quality problems or water quantity problems due to altered hydrology. The areas must be selected based on deleted text begin the statewidedeleted text end priorities established by the state board.
new text begin (b) new text end The allocated funds must be used for conservation practices for high priority problems identified in the comprehensive and annual work plans of the districtsnew text begin , for the technical assistance portion of the grant funds to leverage federal or other nonstate funds, or to address high-priority needs identified in local water management plans or comprehensive watershed management plansnew text end .
deleted text begin (b) The remaining cost-sharing funds may be allocated to districts as follows: deleted text end
deleted text begin (1) for technical and administrative assistance, not more than 20 percent of the funds; and deleted text end
deleted text begin (2) for conservation practices for lower priority erosion, sedimentation, or water quality problems. deleted text end
Each statutory or home rule charter city, town, or county that has planning and zoning authority under sections 366.10 to 366.19, 394.21 to 394.37, or 462.351 to 462.365 is encouraged to adopt a soil loss ordinance. The soil loss ordinance must use the soil loss tolerance for each soil series described in the United States deleted text begin Soildeleted text end new text begin Natural Resources new text end Conservation Service Field Office Technical Guidenew text begin , or another method approved by the Board of Water and Soil Resources,new text end to determine the soil loss limits, but the soil loss limits must be attainable by the best practicable soil conservation practice. Ordinances adopted by local governments deleted text begin within the metropolitan area defined in section 473.121deleted text end must be consistent with deleted text begin local water management plans adopted under section 103B.235deleted text end new text begin a comprehensive plan, local water management plan, or watershed management plan developed or amended, adopted, and approved according to chapter 103B, 103C, or 103Dnew text end .
Manufactured homes and park trailers shall not be taxed as motor vehicles using the public streets and highways and shall be exempt from the motor vehicle tax provisions of this chapter. Except as provided in section 273.125, manufactured homes and park trailers shall be taxed as personal property. The provisions of Minnesota Statutes 1957, section 272.02 or any other act providing for tax exemption shall be inapplicable to manufactured homes and park trailers, except such manufactured homes as are held by a licensed dealer new text begin or limited dealer, as defined in section 327B.04, new text end and exempted as inventorynew text begin under subdivision 9anew text end . Travel trailers not conspicuously displaying current registration plates on the property tax assessment date shall be taxed as manufactured homes if occupied as human dwelling places.
new text begin This section is effective for taxes payable in 2014 and thereafter. new text end
new text begin Manufactured homes as defined in section 327.31, subdivision 6, shall be considered as dealer inventory, on the January 2 assessment date, if the home is: new text end
new text begin (1) listed as inventory and held by a licensed or limited dealer; new text end
new text begin (2) unoccupied and not available for rent; new text end
new text begin (3) connected or not connected to utilities when located in a manufactured home park; and new text end
new text begin (4) connected or not connected to utilities when located at a dealer's sales center. new text end
new text begin The exemption under this subdivision is allowable for up to five assessment years after the date a home is initially claimed as dealer inventory. new text end
new text begin This section is effective for taxes payable in 2014 and thereafter. new text end
new text begin (a) new text end The board may new text begin (i) new text end refuse to grant or renew, or may suspend or revoke, a license of an applicant or licenseenew text begin , or (ii) censure, warn, or fine any licensed assessor, or any other person employed by an assessment jurisdiction or contracting with an assessment jurisdiction for the purpose of valuing or classifying property for property tax purposes,new text end for any of the following causes or acts:
(1) failure to complete required training;
(2) inefficiency or neglect of duty;
(3) failure to comply with the Code of Conduct and Ethics for Licensed Minnesota Assessors adopted by the board pursuant to Laws 2005, First Special Session chapter 3, article 1, section 38;
(4) conviction of a crime involving moral turpitude; deleted text begin ordeleted text end
new text begin (5) failure to faithfully and fully perform his or her duties through malfeasance, misfeasance, or nonfeasance; or new text end
deleted text begin (5)deleted text end new text begin (6)new text end any other cause or act that in the board's opinion warrants a refusal to issue deleted text begin or suspension or revocation ofdeleted text end a licensenew text begin or the imposition of a sanction provided under this subdivisionnew text end .
new text begin (b) When appropriate for the level of infraction, a written warning must be given to assessors who have no prior identified infractions. The warning must identify the infraction and, as appropriate, detail future expectations of performance and behavior. Fines must not exceed $1,000 for the first occurrence and must not exceed $3,000 for each occurrence thereafter, and suspensions must not exceed one year for each occurrence, depending in each case upon the severity of the infraction and the level of negligence or intent. An action by the board to impose a sanction is subject to review in a contested case hearing under chapter 14. new text end
new text begin This section is effective beginning July 1, 2013. new text end
new text begin Each odd-numbered year, the board must publish a report detailing the number and types of disciplinary actions recommended by the commissioner of revenue under section 273.0645, subdivision 2, and the disposition of those recommendations by the board. The report must be presented to the house of representatives and senate committees with jurisdiction over property taxes by February 1 of each odd-numbered year. new text end
new text begin This section is effective beginning July 1, 2013. new text end
All fees new text begin and fines new text end so established and collected shall be paid to the commissioner of management and budget for deposit in the general fund. The expenses of carrying out the provisions of sections 270.41 to 270.50 shall be paid from appropriations made to the board.
new text begin This section is effective beginning July 1, 2013. new text end
new text begin Every individual who appraises or physically inspects real property for the purpose of determining its valuation or classification for property tax purposes must obtain licensure as an accredited Minnesota assessor from the State Board of Assessors by July 1, 2019, or within four years of that person having become licensed as a certified Minnesota assessor, whichever is later. new text end
new text begin This section is effective beginning January 1, 2014. new text end
The holding of property by a political subdivision of the state for later resale for economic development purposes shall be considered a public purpose in accordance with subdivision 8 for a period not to exceed nine years, except thatnew text begin :new text end
new text begin (1)new text end for property located in a city of deleted text begin 5,000deleted text end new text begin 20,000new text end population or under that is located outside of the metropolitan area as defined in section 473.121, subdivision 2, the period must not exceed 15 yearsdeleted text begin .deleted text end new text begin ; andnew text end
new text begin (2) for any property that was acquired on or after January 1, 2000, and on or before December 31, 2010, and is located in a city, the period must not exceed 15 years. new text end
The holding of property by a political subdivision of the state for later resale (1) which is purchased or held for housing purposes, or (2) which meets the conditions described in section 469.174, subdivision 10, shall be considered a public purpose in accordance with subdivision 8.
The governing body of the political subdivision which acquires property which is subject to this subdivision shall after the purchase of the property certify to the city or county assessor whether the property is held for economic development purposes or housing purposes, or whether it meets the conditions of section 469.174, subdivision 10. If the property is acquired for economic development purposes and buildings or other improvements are constructed after acquisition of the property, and if more than one-half of the floor space of the buildings or improvements which is available for lease to or use by a private individual, corporation, or other entity is leased to or otherwise used by a private individual, corporation, or other entity the provisions of this subdivision shall not apply to the property. This subdivision shall not create an exemption from section 272.01, subdivision 2; 272.68; 273.19; or 469.040, subdivision 3; or other provision of law providing for the taxation of or for payments in lieu of taxes for publicly held property which is leased, loaned, or otherwise made available and used by a private person.
new text begin This section is effective for assessment year 2013 and thereafter and for taxes payable in 2014 and thereafter. new text end
new text begin (a) Property is exempt that: new text end
new text begin (1) was classified as 3a under section 273.13, subdivision 24, for taxes payable in 2013; new text end
new text begin (2) is located in a city of the first class with a population greater than 300,000 as of the 2010 federal census; new text end
new text begin (3) was on January 2, 2012, and is for the current assessment owned by a federally recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota; and new text end
new text begin (4) is used exclusively for tribal purposes or institutions of purely public charity as defined in subdivision 7. new text end
new text begin (b) For purposes of this subdivision, a "tribal purpose" means a public purpose as defined in subdivision 8 and includes noncommercial tribal government activities. Property that qualifies for the exemption under this subdivision is limited to no more than two contiguous parcels and structures that do not exceed in the aggregate 20,000 square feet. Property acquired for single-family housing, market-rate apartments, agriculture, or forestry does not qualify for this exemption. The exemption created by this subdivision expires with taxes payable in 2024. new text end
new text begin This section is effective beginning with taxes payable in 2014. new text end
new text begin (a) Notwithstanding subdivision 9, clause (a), and section 453.54, subdivision 20, attached machinery and other personal property which is part of an electric generation facility that exceeds five megawatts of installed capacity and meets the requirements of this subdivision is exempt. At the time of construction, the facility must be: new text end
new text begin (1) designed to utilize natural gas as a primary fuel; new text end
new text begin (2) owned and operated by a municipal power agency as defined in section 453.52, subdivision 8; new text end
new text begin (3) designed to utilize reciprocating engines paired with generators to produce electrical power; new text end
new text begin (4) located within the service territory of a municipal power agency's electrical municipal utility that serves load exclusively in a metropolitan county as defined in section 473.121, subdivision 4; and new text end
new text begin (5) designed to connect directly with a municipality's substation. new text end
new text begin (b) Construction of the facility must be commenced after June 1, 2013, and before June 1, 2017. 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 This section is effective for assessment year 2013, taxes payable in 2014, and thereafter. new text end
(a) The terms of county assessors appointed under this section shall be four years. A new term shall begin on January 1 of every fourth year after 1973. When any vacancy in the office occurs, the board of county commissioners, within 90 days thereafter, shall fill the same by appointment for the remainder of the term, following the procedure prescribed in subdivision 1. The term of the county assessor may be terminated by the board of county commissioners at any time, on charges of malfeasance, misfeasance, or nonfeasance by the commissioner of revenue. If the board of county commissioners does not intend to reappoint a county assessor who has been certified by the state Board of Assessors, the board shall present written notice to the county assessor not later than 90 days prior to the termination of the assessor's term, that it does not intend to reappoint the assessor. If written notice is not timely made, the county assessor will automatically be reappointed by the board of county commissioners.
deleted text begin The commissioner of revenue may recommend to the state Board of Assessors the nonrenewal, suspension, or revocation of an assessor's license as provided in sections 270.41 to 270.50. deleted text end
(b) In the event of a vacancy in the office of county assessor, through death, resignation or other reasons, the deputy (or chief deputy, if more than one) shall perform the functions of the office. If there is no deputy, the county auditor shall designate a person to perform the duties of the office until an appointment is made as provided in clause (a). Such person shall perform the duties of the office for a period not exceeding 90 days during which the county board must appoint a county assessor. Such 90-day period may, however, be extended by written approval of the commissioner of revenue.
(c) In the case of the first appointment under paragraph (a) of a county assessor who is accredited but who does not have senior accreditation, an approval of the appointment by the commissioner shall be provisional, provided that a county assessor appointed to a provisional term under this paragraph must reapply to the commissioner at the end of the provisional term. A provisional term may not exceed two years. The commissioner shall not approve the appointment for the remainder of the four-year term unless the assessor has obtained senior accreditation.
new text begin This section is effective beginning July 1, 2013. new text end
The commissioner of revenue must review the assessment practices in a taxing jurisdiction if requested in writing by a qualifying number of property owners in that taxing jurisdiction. The request must be signed by the greater of:
(1) ten percent of the registered voters who voted in the last general election; or
(2) five property owners.
The request must identify the city, town, or county and describe why a review is sought for that taxing jurisdiction. The commissioner must conduct the review in a reasonable amount of time and report the findings to the county board of the affected county, to the affected city council or town board, if the review is for a specific city or town, and to the property owner designated in the request as the person to receive the report on behalf of all the property owners who signed the request. The commissioner must also provide the report electronically to all property owners who signed the request and provided an e-mail address in order to receive the report electronically.
new text begin County assessors may file a written complaint with the commissioner of revenue detailing allegations of nonfeasance, misfeasance, or malfeasance by a local assessor. After receiving a complaint from a county assessor, the commissioner must complete an investigation and recommend an appropriate action to the State Board of Assessors. The commissioner is not required to have a written complaint from a county assessor in order to conduct an investigation and recommend an action to the board. Active investigative data relating to the investigation of complaints against an assessor by the commissioner of revenue are subject to section 13.39. new text end
new text begin This section is effective July 1, 2013. new text end
The value of real property which is subject to a conservation restriction or easement deleted text begin may be adjusteddeleted text end new text begin shall not be reducednew text end by the assessor if:
(a) the restriction or easement is for a conservation purpose as defined in section 84.64, subdivision 2, and is recorded on the property;new text begin andnew text end
(b) the property is being used in accordance with the terms of the conservation restriction or easement.
new text begin This section does not apply to (1) conservation restrictions or easements covering riparian buffers along lakes, rivers, and streams that are used for water quantity or quality control; or (2) to easements in a county that has adopted, by referendum, a program to protect farmland and natural areas since 1999. new text end
new text begin This section is effective for assessment year 2013 and thereafter, and for taxes payable in 2014 and thereafter. new text end
(a) Class 4a is residential real estate containing four or more units and used or held for use by the owner or by the tenants or lessees of the owner as a residence for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt under section 272.02, and contiguous property used for hospital purposes, without regard to whether the property has been platted or subdivided. The market value of class 4a property has a class rate of 1.25 percent.
(b) Class 4b includes:
(1) residential real estate containing less than four units that does not qualify as class 4bb, other than seasonal residential recreational property;
(2) manufactured homes not classified under any other provision;
(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm classified under subdivision 23, paragraph (b) containing two or three units; and
(4) unimproved property that is classified residential as determined under subdivision 33.
The market value of class 4b property has a class rate of 1.25 percent.
(c) Class 4bb includesdeleted text begin :deleted text end
deleted text begin (1)deleted text end nonhomestead residential real estate containing one unit, other than seasonal residential recreational property; and
deleted text begin (2)deleted text end a single family dwelling, garage, and surrounding one acre of property on a nonhomestead farm classified under subdivision 23, paragraph (b).
Class 4bb property has the same class rates as class 1a property under subdivision 22.
Property that has been classified as seasonal residential recreational property at any time during which it has been owned by the current owner or spouse of the current owner does not qualify for class 4bb.
(d) Class 4c property includes:
(1) except as provided in subdivision 22, paragraph (c), real and personal property devoted to commercial temporary and seasonal residential occupancy for recreation purposes, for not more than 250 days in the year preceding the year of assessment. For purposes of this clause, property is devoted to a commercial purpose on a specific day if any portion of the property is used for residential occupancy, and a fee is charged for residential occupancy. Class 4c property under this clause must contain three or more rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site equipped with water and electrical hookups for recreational vehicles. A camping pad offered for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c under this clause regardless of the term of the rental agreement, as long as the use of the camping pad does not exceed 250 days. In order for a property to be classified under this clause, either (i) the business located on the property must provide recreational activities, at least 40 percent of the annual gross lodging receipts related to the property must be from business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid bookings by lodging guests during the year must be for periods of at least two consecutive nights; or (B) at least 20 percent of the annual gross receipts must be from charges for providing recreational activities, or (ii) the business must contain 20 or fewer rental units, and must be located in a township or a city with a population of 2,500 or less located outside the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion of a state trail administered by the Department of Natural Resources. For purposes of item (i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c property also includes commercial use real property used exclusively for recreational purposes in conjunction with other class 4c property classified under this clause and devoted to temporary and seasonal residential occupancy for recreational purposes, up to a total of two acres, provided the property is not devoted to commercial recreational use for more than 250 days in the year preceding the year of assessment and is located within two miles of the class 4c property with which it is used. In order for a property to qualify for classification under this clause, the owner must submit a declaration to the assessor designating the cabins or units occupied for 250 days or less in the year preceding the year of assessment by January 15 of the assessment year. Those cabins or units and a proportionate share of the land on which they are located must be designated class 4c under this clause as otherwise provided. The remainder of the cabins or units and a proportionate share of the land on which they are located will be designated as class 3a. The owner of property desiring designation as class 4c property under this clause must provide guest registers or other records demonstrating that the units for which class 4c designation is sought were not occupied for more than 250 days in the year preceding the assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility operated on a commercial basis not directly related to temporary and seasonal residential occupancy for recreation purposes does not qualify for class 4c. For the purposes of this paragraph, "recreational activities" means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country ski equipment; providing marina services, launch services, or guide services; or selling bait and fishing tackle;
(2) qualified property used as a golf course if:
(i) it is open to the public on a daily fee basis. It may charge membership fees or dues, but a membership fee may not be required in order to use the property for golfing, and its green fees for golfing must be comparable to green fees typically charged by municipal courses; and
(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with the golf course is classified as class 3a property;
(3) real property up to a maximum of three acres of land owned and used by a nonprofit community service oriented organization and not used for residential purposes on either a temporary or permanent basis, provided that:
(i) the property is not used for a revenue-producing activity for more than six days in the calendar year preceding the year of assessment; or
(ii) the organization makes annual charitable contributions and donations at least equal to the property's previous year's property taxes and the property is allowed to be used for public and community meetings or events for no charge, as appropriate to the size of the facility.
For purposes of this clause:
(A) "charitable contributions and donations" has the same meaning as lawful gambling purposes under section 349.12, subdivision 25, excluding those purposes relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;
(B) "property taxes" excludes the state general tax;
(C) a "nonprofit community service oriented organization" means any corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, fraternal, civic, or educational purposes, and which is exempt from federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal Revenue Code; and
(D) "revenue-producing activities" shall include but not be limited to property or that portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling alley, a retail store, gambling conducted by organizations licensed under chapter 349, an insurance business, or office or other space leased or rented to a lessee who conducts a for-profit enterprise on the premises.
Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use of the property for social events open exclusively to members and their guests for periods of less than 24 hours, when an admission is not charged nor any revenues are received by the organization shall not be considered a revenue-producing activity.
The organization shall maintain records of its charitable contributions and donations and of public meetings and events held on the property and make them available upon request any time to the assessor to ensure eligibility. An organization meeting the requirement under item (ii) must file an application by May 1 with the assessor for eligibility for the current year's assessment. The commissioner shall prescribe a uniform application form and instructions;
(4) postsecondary student housing of not more than one acre of land that is owned by a nonprofit corporation organized under chapter 317A and is used exclusively by a student cooperative, sorority, or fraternity for on-campus housing or housing located within two miles of the border of a college campus;
(5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding manufactured home parks described in section 273.124, subdivision 3a, and (ii) manufactured home parks as defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision 3a;
(6) real property that is actively and exclusively devoted to indoor fitness, health, social, recreational, and related uses, is owned and operated by a not-for-profit corporation, and is located within the metropolitan area as defined in section 473.121, subdivision 2;
(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under section 272.01, subdivision 2, and the land on which it is located, provided that:
(i) the land is on an airport owned or operated by a city, town, county, Metropolitan Airports Commission, or group thereof; and
(ii) the land lease, or any ordinance or signed agreement restricting the use of the leased premise, prohibits commercial activity performed at the hangar.
If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be filed by the new owner with the assessor of the county where the property is located within 60 days of the sale;
(8) a privately owned noncommercial aircraft storage hangar not exempt under section 272.01, subdivision 2, and the land on which it is located, provided that:
(i) the land abuts a public airport; and
(ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement restricting the use of the premises, prohibiting commercial use or activity performed at the hangar; and
(9) residential real estate, a portion of which is used by the owner for homestead purposes, and that is also a place of lodging, if all of the following criteria are met:
(i) rooms are provided for rent to transient guests that generally stay for periods of 14 or fewer days;
(ii) meals are provided to persons who rent rooms, the cost of which is incorporated in the basic room rate;
(iii) meals are not provided to the general public except for special events on fewer than seven days in the calendar year preceding the year of the assessment; and
(iv) the owner is the operator of the property.
The market value subject to the 4c classification under this clause is limited to five rental units. Any rental units on the property in excess of five, must be valued and assessed as class 3a. The portion of the property used for purposes of a homestead by the owner must be classified as class 1a property under subdivision 22;
(10) real property up to a maximum of three acres and operated as a restaurant as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B) is either devoted to commercial purposes for not more than 250 consecutive days, or receives at least 60 percent of its annual gross receipts from business conducted during four consecutive months. Gross receipts from the sale of alcoholic beverages must be included in determining the property's qualification under subitem (B). The property's primary business must be as a restaurant and not as a bar. Gross receipts from gift shop sales located on the premises must be excluded. Owners of real property desiring 4c classification under this clause must submit an annual declaration to the assessor by February 1 of the current assessment year, based on the property's relevant information for the preceding assessment year;
(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public and devoted to recreational use for marina services. The marina owner must annually provide evidence to the assessor that it provides services, including lake or river access to the public by means of an access ramp or other facility that is either located on the property of the marina or at a publicly owned site that abuts the property of the marina. No more than 800 feet of lakeshore may be included in this classification. Buildings used in conjunction with a marina for marina services, including but not limited to buildings used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified as class 3a property; and
(12) real and personal property devoted to noncommercial temporary and seasonal residential occupancy for recreation purposes.
Class 4c property has a class rate of 1.5 percent of market value, except that (i) each parcel of noncommercial seasonal residential recreational property under clause (12) has the same class rates as class 4bb property, (ii) manufactured home parks assessed under clause (5), item (i), have the same class rate as class 4b property, and the market value of manufactured home parks assessed under clause (5), item (ii), has the same class rate as class 4d property if more than 50 percent of the lots in the park are occupied by shareholders in the cooperative corporation or association and a class rate of one percent if 50 percent or less of the lots are so occupied, (iii) commercial-use seasonal residential recreational property and marina recreational land as described in clause (11), has a class rate of one percent for the first $500,000 of market value, and 1.25 percent for the remaining market value, (iv) the market value of property described in clause (4) has a class rate of one percent, (v) the market value of property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property in clause (9) qualifying for class 4c property has a class rate of 1.25 percent.
(e) Class 4d property is qualifying low-income rental housing certified to the assessor by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of the units in the building qualify as low-income rental housing units as certified under section 273.128, subdivision 3, only the proportion of qualifying units to the total number of units in the building qualify for class 4d. The remaining portion of the building shall be classified by the assessor based upon its use. Class 4d also includes the same proportion of land as the qualifying low-income rental housing units are to the total units in the building. For all properties qualifying as class 4d, the market value determined by the assessor must be based on the normal approach to value using normal unrestricted rents.
new text begin (f) The first tier of market value of new text end class 4d property has a class rate of 0.75 percent.new text begin The remaining value of class 4d property has a class rate of 0.25 percent. For the purposes of this paragraph, the "first tier of market value of class 4d property" means the market value of each housing unit up to the first tier limit. For the purposes of this paragraph, all class 4d property value must be assigned to individual housing units. The first tier limit is $100,000 for assessment year 2014. For subsequent years, the limit is adjusted each year by the average statewide change in estimated market value of property classified as class 4a and 4d under this section for the previous assessment year, excluding valuation change due to new construction, rounded to the nearest $1,000, provided, however, that the limit may never be less than $100,000. Beginning with assessment year 2015, the commissioner of revenue must certify the limit for each assessment year by November 1 of the previous year.new text end
new text begin This section is effective beginning with assessment year 2014. new text end
Except as provided in deleted text begin subdivisiondeleted text end new text begin subdivisionsnew text end 3 deleted text begin or 4deleted text end new text begin to 5new text end , 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 penalty is at a rate of two percent on homestead property until May 31 and four percent on June 1. The penalty on nonhomestead property is at a rate of four percent until May 31 and eight percent on 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 subdivision. Thereafter, for both homestead and nonhomestead property, on the first day of each month beginning July 1, up to and including October 1 following, an additional penalty of one percent for each month accrues and is charged on all such unpaid taxes provided that 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 following.
This section applies to payment of personal property taxes assessed against improvements to leased property, except as provided by section 277.01, subdivision 3.
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.
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 In the case of a homestead property owned by an individual who is on federal active service, as defined in section 190.05, subdivision 5c, as a member of the National Guard or a reserve component, a four-month grace period is granted for complying with the due dates imposed by subdivision 1. During this period, no late fees or penalties shall accrue against the property. The due date for property taxes owed under this chapter for an individual covered by this subdivision shall be September 15 for taxes due on May 15, and February 15 of the following year for taxes due on October 15. A taxpayer making a payment under this subdivision must accompany the payment with a signed copy of the taxpayer's orders or form DD214 showing the dates of active service which clearly indicate that the taxpayer was in active service as a member of the National Guard or a reserve component on the date the payment was due. This grace period applies to all homestead property owned by individuals on federal active service, as herein defined, for all of that property's due dates which fall on a day that is included in the taxpayer's federal active service. new text end
On the first business day in January, of each year, the county treasurer shall return the tax lists on hand to the county auditor, who shall compare the same with the statements receipted for by the treasurer on file in the auditor's office and each tract or lot of real property against which the taxes, or any part thereof, remain unpaid, shall be deemed delinquent, and thereupon an additional penalty of two percent on the amount of the original tax remaining unpaid shall immediately accrue and thereafter be charged upon all such delinquent taxes; and any auditor who shall make out and deliver any statement of delinquent taxes without including therein the penalties imposed by law, and any treasurer who shall receive payment of such taxes without including in such payment all items as shown on the auditor's statement, shall be liable to the county for the amounts of any items omitted.
new text begin Notwithstanding subdivision 1, a homestead property owned by an individual who is on federal active service, as defined in section 190.05, subdivision 5c, as a member of the National Guard or a reserve component, shall not be deemed delinquent under this section if the due dates imposed under section 279.01 fall on a day in which the individual was on federal active service. new text end
(a) The delinquent taxes upon a parcel of property which was classified class 3a, for the previous year's assessment deleted text begin and had a total market value of $500,000 or less for that same assessmentdeleted text end shall be eligible to be composed into a confession of judgmentnew text begin with the approval of the county auditornew text end . Property qualifying under this subdivision shall be subject to the same provisions as provided in this section except as provided in paragraphs (b) to deleted text begin (d)deleted text end new text begin (f)new text end .
(b) Current year taxes and penalty due at the time the confession of judgment is entered must be paid.
(c) The down payment must include all special assessments due in the current tax year, all delinquent special assessments, and 20 percent of the ad valorem tax, penalties, and interest accrued against the parcel. The balance remaining is payable in four equal annual installments.new text begin A municipality as defined in section 429.011, cities of the first class, and other special assessment authorities, that have certified special assessments against any parcel of property, may, through resolution, waive the requirement of payment of all current and delinquent special assessments at the time the confession is entered. If the municipality, city, or authority grants the waiver, 100 percent of all current year taxes, special assessments, and penalties due at the time, along with 20 percent of all delinquent taxes, special assessments, penalties, interest, and fees must be paid. The balance remaining shall be subject to and included in the installment plan.new text end
new text begin (d) When there are current and delinquent special assessments certified and billed against a parcel, the assessment authority or municipality as defined in section 429.011 may abate under section 375.192, subdivision 2, all special assessments and the penalty and interest affiliated with the special assessments, and reassess the special assessments, penalties, and interest accrued thereon, under section 429.071, subdivision 2. The municipality shall notify the county auditor of its intent to reassess as a precondition to the entry of the confession of judgment. Upon the notice to abate and reassess, the municipality shall, through resolution, notify the county auditor to remove all current and delinquent special assessments and the accrued penalty and interest on the special assessments, and the payment of all or a portion of the current and delinquent assessments shall not be required as part of the down payment due at the time the confession of judgment is entered in accordance with paragraph (c). new text end
deleted text begin (d)deleted text end new text begin (e)new text end The amounts entered in judgment bear interest at the rate provided in section 279.03, subdivision 1a, commencing with the date the judgment is entered. The interest rate is subject to change each year on the unpaid balance in the manner provided in section 279.03, subdivision 1a.
new text begin (f) The county auditor may require conditions on properties including, but not limited to, environmental remediation action plan requirements, restrictions, or covenants, when considering a request for approval of eligibility for composition into a confession of judgment for delinquent taxes upon a parcel of property which was classified class 3a for the previous year's assessment. new text end
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 Minnesota Statutes 1941, sections 278.01 to 278.13, 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. new text begin Unless the property is subject to subdivision 1a, new text end with the offer, the owner shallnew text begin (i)new text end tender one-tenth of the amount of the delinquent taxes, costs, penalty, and interest, and deleted text begin shalldeleted text end new text begin (ii)new text end 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. 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 new text begin or one-fifth new text end of the amount of the taxes, costs, penalty, and interest stated above. I agree to pay the balance of the judgment in ninenew text begin or fournew text end 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 Minnesota Statutes, sections 278.01 to 278.13.
Dated .............., ......."
The time for redemption from any tax sale, whether made to the state or to a private person, shall not expire until notice of expiration of redemption, as provided in section deleted text begin 281.13deleted text end new text begin 281.17new text end , shall have been given.
Except for properties for which the period of redemption has been limited under sections 281.173 and 281.174, the following periods for redemption apply.
The period of redemption for all lands sold to the state at a tax judgment sale shall be three years from the date of sale to the state of Minnesota deleted text begin if the land is within an incorporated area unless it is: (a) nonagricultural homesteaded land as defined in section 273.13, subdivision 22; (b) homesteaded agricultural land as defined in section 273.13, subdivision 23, paragraph (a); or (c) seasonal residential recreational land as defined in section 273.13, subdivision 22, paragraph (c), or 25, paragraph (d), clause (1), for which the period of redemption is five years from the date of sale to the state of Minnesotadeleted text end .
The period of redemption for homesteaded lands as defined in section 273.13, subdivision 22, located in a targeted neighborhood as defined in Laws 1987, chapter 386, article 6, section 4, and sold to the state at a tax judgment sale is three years from the date of sale. The period of redemption for all lands located in a targeted neighborhood as defined in Laws 1987, chapter 386, article 6, section 4, except (1) homesteaded lands as defined in section 273.13, subdivision 22, and (2) for periods of redemption beginning after June 30, 1991, but before July 1, 1996, lands located in the Loring Park targeted neighborhood on which a notice of lis pendens has been served, and sold to the state at a tax judgment sale is one year from the date of sale.
The period of redemption for all real property constituting a mixed municipal solid waste disposal facility that is a qualified facility under section 115B.39, subdivision 1, is one year from the date of the sale to the state of Minnesota.
deleted text begin The period of redemption for all other lands sold to the state at a tax judgment sale shall be five years from the date of sale, except that the period of redemption for nonhomesteaded agricultural land as defined in section 273.13, subdivision 23, paragraph (b), shall be two years from the date of sale if at that time that property is owned by a person who owns one or more parcels of property on which taxes are delinquent, and the delinquent taxes are more than 25 percent of the prior year's school district levy. deleted text end
new text begin For properties located in Hennepin and Ramsey Counties, the county may impose an additional mortgage registry tax as defined in sections 383A.80 and 383B.80. new text end
new text begin This section is effective for deeds and mortgages acknowledged on or after July 1, 2013. new text end
new text begin For properties located in Hennepin and Ramsey Counties, the county may impose an additional deed tax as defined in sections 383A.80 and 383B.80. new text end
new text begin This section is effective for deeds and mortgages acknowledged on or after July 1, 2013. new text end
The authority to impose the tax under this section expires January 1, deleted text begin 2013deleted text end new text begin 2028new text end .
new text begin This section is effective for all deeds and mortgages acknowledged on or after July 1, 2013. new text end
The authority to impose the tax under this section expires January 1, deleted text begin 2013deleted text end new text begin 2028new text end .
new text begin This section is effective for all deeds and mortgages acknowledged on or after July 1, 2013. new text end
The establishment of a new special service district after June 30, deleted text begin 2013deleted text end new text begin 2028new text end , requires enactment of a special law authorizing the establishment.
new text begin This section is effective the day following final enactment. new text end
The establishment of a new housing improvement area after June 30, deleted text begin 2013deleted text end new text begin 2028new text end , requires enactment of a special law authorizing the establishment of the area.
new text begin This section is effective the day following final enactment. new text end
new text begin (a) new text end Beginning in 1987 and each subsequent year through 1998, the city of Bloomington shall determine the interest payments for that year for the bonds which have been sold for the highway improvements pursuant to Laws 1986, chapter 391, section 2, paragraph (g). Effective for property taxes payable in 1988 through property taxes payable in 1999, after the Hennepin County auditor has computed the areawide portion of the levy for the city of Bloomington pursuant to subdivision 3, clause (a), the auditor shall annually add a dollar amount to the city of Bloomington's areawide portion of the levy equal to the amount which has been certified to the auditor by the city of Bloomington for the interest payments for that year for the bonds which were sold for highway improvements. The total areawide portion of the levy for the city of Bloomington including the additional amount for interest repayment certified pursuant to this subdivision shall be certified by the Hennepin County auditor to the administrative auditor pursuant to subdivision 5. The Hennepin County auditor shall distribute to the city of Bloomington the additional areawide portion of the levy computed pursuant to this subdivision at the same time that payments are made to the other counties pursuant to subdivision 7a. For property taxes payable from the year 2009 through deleted text begin 2018deleted text end new text begin 2014new text end , the Hennepin County auditor shall adjust Bloomington's contribution to the areawide gross tax capacity upward each year by a value equal to ten percent of the total additional areawide levy distributed to Bloomington under this subdivision from 1988 to 1999, divided by the areawide tax rate for taxes payable in the previous year.
new text begin (b) For property taxes payable from 2015 through 2018, the administrative auditor shall increase the areawide net tax capacity each year by an amount equal to ten percent of the total additional areawide levy distributed to Bloomington under this subdivision from 1988 to 1999, divided by the areawide tax rate for taxes payable in the previous year. The administrative auditor must notify the commissioner of revenue of the amount determined by multiplying the increase in the areawide net tax capacity by the areawide tax rate determined under subdivision 5. The commissioner of revenue must pay the amount determined each payable year to the administrative auditor in two installments on July 10 and November 10, for distribution and settlement as provided in subdivision 7a. new text end
new text begin (c) A sum sufficient to meet the obligations under this subdivision is annually appropriated from the general fund to the commissioner of revenue. new text end
new text begin This section is effective beginning with taxes payable in 2015. new text end
(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 deleted text begin solelydeleted text end new text begin by the Cook ambulance service and the Orr ambulance servicenew text end for the purpose of deleted text begin capital expenditures as it relates todeleted text end new text begin :new text end
new text begin (1)new text end ambulance acquisitions for the Cook ambulance service and the Orr ambulance service deleted text begin and notdeleted text end new text begin ;new text end
new text begin (2) attached and portable equipment for use in and for the ambulances; and new text end
new text begin (3) parts and replacement parts for maintenance and repair of the ambulances. new text end
new text begin The money may not be usednew text end for administrativenew text begin , operation, new text end or salary expenses.
new text begin (c) new text end The part of the levy referred to in paragraph (b) must be administered by the Cook Hospital and passed on new text begin in equal amounts new text end directly to the Cook area ambulance service board and the city of Orr to be deleted text begin held in trust until funding for a new ambulance is needed by either the Cook ambulance service or the Orr ambulance servicedeleted text end new text begin used for the purposes in paragraph (b)new text end .
Notwithstanding other law to the contrary, the Carlton county board of commissioners maynew text begin annuallynew text end levy in and for the unorganized deleted text begin townshipdeleted text end new text begin territorynew text end of Sawyer an amount deleted text begin up to $1,000 annuallydeleted text end for cemetery purposesdeleted text begin , beginning with taxes payable in 2000 and ending with taxes payable in 2009deleted text end .
deleted text begin This section is effective June 1, 1999, without local approval. deleted text end
new text begin This section applies to taxes payable in 2014 and thereafter, and is effective the day after the Carlton County Board of Commissioners and its chief clerical officer timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end
This section is effective for taxes levied in 2008, payable in 2009, and is repealed effective for taxes levied in deleted text begin 2013deleted text end new text begin 2018new text end , payable in deleted text begin 2014deleted text end new text begin 2019new text end , and thereafter.
new text begin This section is effective beginning with taxes payable in 2014. new text end
The city of Cloquet and Perch Lake Township, by resolution of each of their governing bodies, may establish the Cloquet Area Fire and Ambulance Taxing District for the purpose of providing fire deleted text begin anddeleted text end new text begin ornew text end ambulance servicesnew text begin , or both, new text end 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 deleted text begin anddeleted text end new text begin ornew text end ambulance servicesnew text begin , or both, new text end from the district. new text begin Upon application, new text end any other municipality deleted text begin that is contiguous to a municipality that is a member of the districtdeleted text end may join the district with the agreement of the municipalities that comprise the district at the time of its application to join.
The district board may impose a property tax on taxable property deleted text begin in the districtdeleted text end new text begin as provided in this subdivisionnew text end . deleted text begin Thisdeleted text end new text begin 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, thenew text end tax shall be imposed at a rate that does not exceed 0.2835 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value deleted text begin for taxes payable in 2010. The board shall annually determine the separate amounts of the levy that are attributable to the cost of providing fire services and the cost of providing ambulance services. Costs for the provision of ambulance services shall be levied against taxable property within the area of the district that receive the services. Costs for the provision of fire services shall be levied against taxable property within the area of the district that receive the servicesdeleted text end .
When new text begin a member municipality opts to receive fire service from the district or new text end an additional municipality becomes a member of the district, the deleted text begin additionaldeleted text end cost of providing deleted text begin ambulance anddeleted text end fire services to that deleted text begin municipality willdeleted text end new text begin community shallnew text end be determined by the board and added to the maximum levy amount.
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.
This section is effective for assessment deleted text begin yearsdeleted text end new text begin yearnew text end 2010 and deleted text begin 2011, for taxes payable in 2011 and 2012deleted text end new text begin thereafternew text end .
new text begin This section is effective for assessment year 2012 and thereafter. new text end
new text begin The legislature finds that the national economic structure of professional sports financing, as directly or indirectly sanctioned by federal law, compels state and local governments in smaller metropolitan areas, such as Minneapolis and St. Paul, to help finance the construction and operation of venues for professional sports franchises as a condition of hosting these franchises. The burden and risk associated with providing this assistance justifies authorizing and directing the cities and any associated private entities to enter into arrangements that attempt to maximize the combined revenues of these facilities from direct users, including those unrelated to professional sports, such as, but not limited to, joint booking of concerts and other events, to minimize the cost and risk to general taxpayers. Any efforts to put in place such joint marketing, promotion, and scheduling arrangements by the cities or associated private entities, in the view of the legislature, is a petition for enactment of this or subsequent enabling legislation under the Noerr-Pennington doctrine or state action under the Parker antitrust doctrine. This legislation and any resulting arrangements are intended to minimize the potential burden on general taxpayers of financing and operation of the arenas. new text end
new text begin On or before February 1, 2014, the cities of Minneapolis and St. Paul, in consultation with representatives of the primary professional sports team tenant of each arena, shall study and report to the legislature on establishing a joint governing structure to be responsible for the joint administration, financing, and operations of the facilities and the possible effects of joint governance on the finances of each arena and each city. The commissioner of administration, in consultation with the two cities, shall contract with an independent consultant to conduct all or a portion of the study. The cities of Minneapolis and St. Paul together shall pay one-half of the cost of the consultant contract. The commissioner may accept funding from other public entities and private organizations to pay for the contract. The study must: new text end
new text begin (1) examine the current finances of each arena including past and projected costs and revenues, projected capital improvements, and the current and projected impact of each arena on each city's general fund; new text end
new text begin (2) determine the impact of joint governance on the future finances of each city; new text end
new text begin (3) examine joint scheduling, marketing, and promotion of events at the arenas, either within a joint governance structure or as separate entities; and new text end
new text begin (4) estimate the amount of funding, if any, that would be required to operate and maintain the arenas under a joint governing structure. new text end
new text begin Up to $50,000 is appropriated to the commissioner of administration from the general fund for fiscal year 2014 to pay up to one-half of the costs of the consultant contract under subdivision 2. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin The commissioner of revenue shall reimburse taxing jurisdictions for property tax abatements granted in Hennepin County under Laws 2011, First Special Session chapter 7, article 5, section 13, notwithstanding the time limits contained in that section. The reimbursements must be made to each taxing jurisdiction pursuant to the certification of the Hennepin County auditor. new text end
new text begin In fiscal year 2014 only, $336,000 is appropriated to the commissioner of revenue from the general fund to make the payments required in this section. new text end
new text begin This section is effective the day following final enactment. 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 ballpark for a minor league baseball 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 minor league ballpark 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 ballpark 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 ballpark. new text end
new text begin This section is effective the day after compliance by the governing body of the city of St. Paul with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end
new text begin Any real or personal property acquired, owned, leased, controlled, used, or occupied by the city of Minneapolis for the primary purpose of providing an arena for a professional basketball 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 professional basketball arena 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 arena 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 for other purposes different from those necessary to the provision and operation of the arena. new text end
new text begin This section is effective the day after compliance by the governing body of the city of Minneapolis with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end
new text begin (a) For any real or personal property acquired, owned, leased, controlled, used, or occupied by the city of Minneapolis for the primary purpose of providing an arena for a professional basketball team, the city of Minneapolis may contract for construction, materials, supplies, and equipment in accordance with Minnesota Statutes, section 471.345, except that the city may employ or contract with persons, firms, or corporations to perform one or more or all of the functions of an engineer, architect, construction manager, or program manager with respect to all or any part of a project to renovate, refurbish, and remodel the arena under either the traditional design-bid-build plan or construction manager at risk plan, or a combination thereof. new text end
new text begin (b) The city may prepare a request for proposals for one or more of the functions described in paragraph (a). The request must be published in a newspaper of general circulation. The city may prequalify offerors by issuing a request for qualifications, in advance of the request for proposals, and select a short list of responsible offerors to submit proposals. new text end
new text begin (c) As provided in the request for proposals, the city may conduct discussions and negotiations with responsible offerors in order to determine which proposal is most advantageous to the city and to negotiate the terms of an agreement. In conducting discussions, there shall be no disclosure of any information derived from proposals submitted by competing offerors and the content of all proposals is nonpublic data under Minnesota Statutes, chapter 13, until such time as a notice to award a contract is given by the city. new text end
new text begin (d) Upon agreement on the guaranteed maximum price, the construction manager or program manager may enter into contracts with subcontractors for labor, materials, supplies, and equipment for the renovation project through the process of public bidding, except that the construction manager or program manager may, with the consent of the city: new text end
new text begin (1) narrow the listing of eligible bidders to those that the construction manager or program manager determines to possess sufficient expertise to perform the intended functions; new text end
new text begin (2) award contracts to the subcontractors that the construction manager or program manager determines provide the best value under a request for proposals, as described in Minnesota Statutes, section 16C.28, subdivision 1, paragraph (a), clause (2), that are not required to be the lowest responsible bidder; and new text end
new text begin (3) for work the construction manager or program manager determines to be critical to the completion schedule, perform work with its own forces without soliciting competitive bids or proposals, if the construction manager or program manager provides evidence of competitive pricing. new text end
new text begin This section is effective the day after compliance by the governing body of the city of Minneapolis with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end
new text begin Notwithstanding the provisions of Minnesota Statutes, section 279.01, subdivision 1, for taxes payable in 2013 only, the penalty on first-half property taxes does not accrue until June 15 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 15 without penalty, the owner of the property must attach an affidavit to the payment attesting to compliance with the income provision of this subdivision. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin The commissioners of revenue and housing finance shall report to the legislature by January 31, 2015, on the implementation of a second tier of market value for class 4d property under Minnesota Statutes, section 273.13, subdivision 25, paragraph (f). The report shall include the number of class 4d properties subject to the second tier of market value for taxes payable in 2015 and the tax impact of the application of the second tier of market value. The report shall also include an analysis of the characteristics of the properties to which the second tier of market value applies, such as location, building type, and number of units. new text end
new text begin This section is effective July 1, 2013. new text end
new text begin (a) In order to facilitate a legislative review of property tax assessment procedures for facilities used in the production of biofuels, wine, beer, distilled beverages, and dairy products, and the development of standards and criteria for determining the taxable status of these facilities, the commissioner of revenue must conduct a study and report the findings of the study. The study must: new text end
new text begin (1) include a detailed survey of counties identifying the components and tax status of biofuel facilities; new text end
new text begin (2) identify the function of components in facilities of the affected industries; new text end
new text begin (3) consider the taxability for certain components related to size, function, and use; new text end
new text begin (4) develop recommendations for assessment guidelines and policies for facilities of the affected industries; and new text end
new text begin (5) identify possible impacts to state and local taxes resulting from study recommendations. new text end
new text begin (b) The commissioner shall request the involvement and participation of stakeholders, including the affected industries, the assessment community, and others identified by the commissioner. new text end
new text begin (c) The commissioner shall report the findings to the chairs of the house of representatives and senate committees with jurisdiction over taxes, agriculture, and economic development as well as the commissioners of agriculture and employment and economic development by February 1, 2014. new text end
new text begin (a) For the 2013 and 2014 assessments, assessors must continue to use assessment practices or policies in effect in that county on January 2, 2012, for determining the taxable status of property used in the production of biofuels, wine, beer, distilled beverages, or dairy products. new text end
new text begin (b) An assessor must not change the taxable status of any existing property described in paragraph (a) from its status on January 2, 2012, unless the change is due to a change in the use of property, or to correct an error. For taxable properties, the assessor may change the estimated market value of the property and add value for any new construction that would have been taxable under practices and policies in place on January 2, 2012. new text end
new text begin (c) This subdivision expires on December 31, 2014. Any changes to the taxable status of the properties in paragraph (a) resulting from the study will not be effective until the 2015 assessment. new text end
new text begin (a) In addition to the certification of its proposed property tax levy under Minnesota Statutes, section 275.065, each city that has a population over 500 and each county shall also include the amount of sales and use tax paid, or was estimated to be paid, in 2012. new text end
new text begin (b) At the time the notice of the proposed property taxes is mailed as required under Minnesota Statutes, section 275.065, subdivision 3, the county treasurer shall also include a separate statement providing a list of sales and use tax certified by the county and cities within their jurisdiction. new text end
new text begin (c) At the public hearing required under Minnesota Statutes, section 275.065, subdivision 3, the county and city must discuss the estimated savings realized to their budgets that resulted from the sales tax exemption authorized under Minnesota Statutes, section 297A.70, subdivision 2, and how those savings will be used for property tax levy reductions, fee reductions, and other purposes as deemed appropriate. new text end
new text begin Reasonable costs of preparing the notice required in this section must be apportioned between taxing jurisdictions as follows: new text end
new text begin (1) one-half is allocated to the county; and new text end
new text begin (2) one-half is allocated among the cities. new text end
new text begin The amount allocated in clause (2) must be further apportioned among all the cities in the proportion that the number of parcels in the city bears to the number of parcels in all the cities that have populations over 500. new text end
new text begin This section is effective the day following final enactment, for taxes levied in 2013 and payable in 2014. new text end
new text begin "Population" means the population for the local governmental unit as established by the last federal census, by a census taken under section Minnesota Statutes, section 275.14, or by an estimate made by the metropolitan council or by the state demographer under Minnesota Statutes, section 4A.02, whichever is most recent as to the stated date of the count or estimate up to and including June 1 of the current levy year. new text end
new text begin "Local governmental unit" means a county with a population greater than 5,000, or a statutory or home rule charter city with a population greater than 2,500. new text end
new text begin "Levy limit base" for a local governmental unit for levy year 2013 means the sum of its certified net tax capacity levy plus the total of aids and reimbursements that the local governmental unit is certified to receive under Minnesota Statutes, sections 477A.011 to 477A.014, minus any amounts that would qualify as a special levy under Minnesota Statutes, section 275.70, subdivision 5, clauses (1) to (4) and (7), for taxes levied in 2011 or 2012, whichever is greater. The levy limit base must be increased by three percent. new text end
new text begin For taxes levied in 2013, the net tax capacity levy limit for a local governmental unit is equal to its levy limit base determined under subdivision 3 plus any additional levy authorized under Minnesota Statutes, section 275.73, which is levied against net tax capacity, reduced by the total amount of aids and reimbursements that the local governmental unit is certified to receive under Minnesota Statutes, sections 477A.011 to 477A.014. The property tax levy limit for any local government cannot be less than the greater of its certified net tax capacity levies for taxes levied in 2011 or 2012. new text end
new text begin Notwithstanding any other provision of law or municipal charter to the contrary which authorize ad valorem taxes in excess of the limits established by this section, the provisions of this section apply to local governmental units for all purposes other than those for which special levies under Minnesota Statutes, section 275.70, subdivision 5, clauses (1) to (5) and (7), and special assessments are made. new text end
new text begin If the levy made by a city or county exceeds the levy limit provided in this section, except when the excess levy is due to the rounding of the rate in accordance with Minnesota Statutes, section 275.28, the county auditor shall only extend the amount of taxes permitted under this section as provided for in Minnesota Statutes, section 275.16. new text end
new text begin The commissioner of revenue shall make all necessary calculations for determining levy limits for local governmental units and notify the affected governmental units of their levy limits directly by September 1, 2013. The local governmental units shall, upon request, provide the commissioner with any information needed to make the calculations. The local governmental unit shall report by September 30, in a manner prescribed by the commissioner, the maximum amount of taxes it plans to levy for each of the purposes listed under special levies and any additional levy authorized under Minnesota Statutes, section 275.73, along with any necessary documentation. The commissioner shall review the proposed special levies and make any adjustments needed. The commissioner's decision is final. The final allowed special levy amounts and any levy limit adjustments must be certified back to the local governments by December 10. In addition, the commissioner of revenue shall notify all county auditors on or before five working days after December 20 of the sum of the levy limit plus the total of allowed special levies for each local governmental unit located within their boundaries so that they may fix the levies as required in Minnesota Statutes, section 275.16. The local governmental units shall provide the commissioner of revenue with all information that the commissioner deems necessary to make the calculations provided for in this section. new text end
new text begin A local governmental unit must provide the commissioner with the information required to calculate the amount under subdivision 3, by July 20, 2013. If the information is not received by the commissioner by that date, or is not deemed sufficient to make the calculation under that clause, the commissioner has the discretion to set the local governmental unit's levy limit for all purposes including those purposes for which special levies may be made, equal to the amount of the local governmental unit's certified levy for the prior year. new text end
new text begin This section is effective for taxes levied in 2013, payable in 2014, only. new text end
new text begin $2,000,000 in fiscal year 2014 only is appropriated from the general fund to the commissioner of revenue for a grant to the city of Moose Lake to reimburse for costs related to connection of state facilities to the sewer line. new text end
new text begin This section is effective July 1, 2013. new text end
A person who, either singly or jointly with others, has the control of, supervision of, or responsibility for filing returns or reports, paying taxes, or collecting or withholding and remitting taxes and who fails to do so, or a person who is liable under any other law, is liable for the payment of taxes arising under chapters 295, 296A, 297A, 297F, and 297G, or sections deleted text begin 256.9658,deleted text end 290.92, and 297E.02, and the applicable penalties and interest on those taxes.
new text begin This section is effective July 1, 2013. new text end
There is imposed an excise tax of deleted text begin the same ratedeleted text end new text begin 15 cents new text end per gallon deleted text begin as the aviation gasolinedeleted text end on all jet fuel or special fuel received, sold, stored, or withdrawn from storage in this state, for use as substitutes for aviation gasoline and not otherwise taxed as gasoline. Jet fuel is defined in section 296A.01, subdivision 8.
new text begin This section is effective July 1, 2014, and applied to sales and purchases made on or after that date. new text end
Any person who has directly or indirectly paid the excise tax on aviation gasoline or special fuel for aircraft use provided for by this chapternew text begin and the airflight property tax under section 270.72new text end , shall, as to all such aviation gasoline 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 such aviation gasoline or special fuel up to 50,000 gallons, all but five cents per gallon;
(2) on each gallon of such aviation gasoline 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 such aviation gasoline 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 such aviation gasoline or special fuel above 200,000, all but one-half cent per gallon.
new text begin This section is effective July 1, 2014, and applied to sales and purchases made on or after that date. new text end
(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 airplanes with a gross weight of less than 30,000 pounds that are used on intermittent or irregularly timed flights.
(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.
new text begin (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 end
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
new text begin Tax revenue 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 end
new text begin This section is effective July 1, 2013, and applied to sales and purchases made on or after that date. new text end
"Cigarette" means any roll for smoking made wholly or in part of tobaccodeleted text begin ,deleted text end new text begin that weighs 4.5 pounds or less per thousand:new text end
new text begin (1)new text end the wrapper or cover of which is made of paper or another substance or material except tobacconew text begin ; ornew text end
new text begin (2) wrapped in any substance containing tobacco, however labeled or named, which, because of its appearance, size, the type of tobacco used in the filler, or its packaging, pricing, marketing, or labeling, is likely to be offered to or purchased by consumers as a cigarette, as defined in clause (1), unless it is wrapped in whole tobacco leaf and does not have a cellulose acetate or other cigarette-like filternew text end .
new text begin This section is effective July 1, 2013. new text end
new text begin "Moist snuff" means any finely cut, ground, or powdered smokeless tobacco that is intended to be placed or dipped in the mouth. new text end
new text begin This section is effective January 1, 2014. new text end
new text begin "Premium cigar" means any cigar that is hand-constructed and hand-rolled, has a wrapper that is made entirely from whole tobacco leaf, has a filler and binder that is made entirely of tobacco, except for adhesives or other materials used to maintain size, texture, or flavor, and has a wholesale price of no less than $2. new text end
new text begin This section is effective July 1, 2013. new text end
new text begin (a) new text end "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;deleted text begin little cigars;deleted text end 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, 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.
new text begin (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 end
new text begin This section is effective July 1, 2013. new text end
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 following rates:
(1) on cigarettes weighing not more than three pounds per thousand, deleted text begin 24deleted text end new text begin 141.5 new text end mills on each such cigarette; and
(2) on cigarettes weighing more than three pounds per thousand, deleted text begin 48deleted text end new text begin 283new text end mills on each such cigarette.
new text begin This section is effective July 1, 2013. new text end
new text begin (a) Each year the commissioner shall adjust the tax rates under subdivision 1, including any adjustment made in prior years under this subdivision, by multiplying the mill rates for the current calendar year by an adjustment factor and rounding the result to the nearest mill. The adjustment factor equals the in-lieu sales tax rate that applies to the following calendar year divided by the in-lieu sales tax rate for the current calendar year. For purposes of this subdivision, "in-lieu sales tax rate" means the tax rate established under section 297F.25, subdivision 1. For purposes of the calculations under this subdivision to be made in any year in which an increase in the federal or state excise tax on cigarettes is implemented, the commissioner shall exclude from the calculated average price for the current year an amount equal to any increase in the state or federal excise tax rate. new text end
new text begin (b) The commissioner shall publish the resulting rate by November 1 and the rate applies to sales made on or after January 1 of the following year. new text end
new text begin (c) The determination of the commissioner under this subdivision is not a rule and is not subject to the Administrative Procedure Act in chapter 14. new text end
new text begin This section is effective July 1, 2014. new text end
new text begin (a) Except as provided in subdivision 3a, new 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 deleted text begin 35deleted text end new text begin 95 new text end 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.
new text begin (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. new text end
new text begin 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 end
new text begin This section is effective July 1, 2013, except the minimum tax under paragraph (b) is effective January 1, 2014. new text end
new text begin (a) A tax is imposed upon all premium cigars in this state and upon any person engaged in business as a tobacco product distributor, at the lesser of: new text end
new text begin (1) the rate of 95 percent of the wholesale sales price of the premium cigars; or new text end
new text begin (2) $3.50 per premium cigar. new text end
new text begin (b) The tax imposed under paragraph (a) 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 from outside the state premium cigars for sale; new text end
new text begin (2) makes, manufactures, or fabricates premium cigars in this state for sale in this state; or new text end
new text begin (3) ships or transports premium cigars to retailers in this state, to be sold by those retailers. new text end
new text begin This section is effective July 1, 2013. new text end
new text begin Except as provided in subdivision 4a, new text end a tax is imposed upon the use or storage by consumers of tobacco products in this state, and upon such consumers, at the rate of deleted text begin 35deleted text end new text begin 95new text end percent of the cost to the consumer of the tobacco productsnew text begin or the minimum tax under subdivision 3, paragraph (b), whichever is greaternew text end .
new text begin This section is effective July 1, 2013. new text end
new text begin A tax is imposed upon the use or storage by consumers of all premium cigars in this state, and upon such consumers, at the lesser of: new text end
new text begin (1) the rate of 95 percent of the cost to the consumer of the premium cigars; or new text end
new text begin (2) $3.50 per premium cigar. new text end
new text begin This section is effective July 1, 2013. new text end
(a) A fee is imposed upon the sale of nonsettlement cigarettes in this state, upon having nonsettlement 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 of nonsettlement cigarettes. The fee equals a rate of deleted text begin 1.75deleted text end new text begin 2.5 new text end cents per cigarette.
(b) The purpose of this fee is to:
(1) ensure that manufacturers of nonsettlement cigarettes pay fees to the state that are comparable to costs attributable to the use of the cigarettes;
(2) prevent manufacturers of nonsettlement cigarettes from undermining the state's policy of discouraging underage smoking by offering nonsettlement cigarettes at prices substantially below the cigarettes of other manufacturers; and
(3) fund such other purposes as the legislature determines appropriate.
new text begin This section is effective July 1, 2013. new text end
(a) A tax is imposed on distributors on the sale of cigarettes by a cigarette distributor to a retailer or cigarette subjobber for resale in this state. The tax is equal to deleted text begin 6.5 percent ofdeleted text end new text begin the combined tax rate under section 297A.62, multiplied by new text end the weighted average retail price and must be expressed in cents per pack rounded to the nearest one-tenth of a cent. The weighted average retail price must be determined annually, with new rates published by November 1, and effective for sales on or after January 1 of the following year. The weighted average retail price must be established by surveying cigarette retailers statewide in a manner and time determined by the commissioner. The commissioner shall make an inflation adjustment in accordance with the Consumer Price Index for all urban consumers inflation indicator as published in the most recent state budget forecast. The commissioner shall use the inflation factor for the calendar year in which the new tax rate takes effect. If the survey indicates that the average retail price of cigarettes has not increased relative to the average retail price in the previous year's survey, then the commissioner shall not make an inflation adjustment. The determination of the commissioner pursuant to this subdivision is not a "rule" and is not subject to the Administrative Procedure Act contained in chapter 14. For packs of cigarettes with other than 20 cigarettes, the tax must be adjusted proportionally.
(b) Notwithstanding paragraph (a), and in lieu of a survey of cigarette retailers, the tax calculation of the weighted average retail price for the sales of cigarettes from August 1, 2011, through December 31, 2011, shall be calculated by: (1) increasing the average retail price per pack of 20 cigarettes from the most recent survey by the percentage change in a weighted average of the presumed legal prices for cigarettes during the year after completion of that survey, as reported and published by the Department of Commerce under section 325D.371; (2) subtracting the sales tax included in the retail price; and (3) adjusting for expected inflation. The rate must be published by May 1 and is effective for sales after July 31. If the weighted average of the presumed legal prices indicates that the average retail price of cigarettes has not increased relative to the average retail price in the most recent survey, then no inflation adjustment must be made. For packs of cigarettes with other than 20 cigarettes, the tax must be adjusted proportionally.
new text begin This section is effective July 1, 2013. new text end
A qualified brewer producing fermented malt beverages is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year beginning July 1, regardless of the alcohol content of the product. Qualified brewers may take the credit on the 18th day of each month, but the total credit allowed may not exceed in any fiscal year the lesser of:
(1) the liability for tax; or
(2) $115,000.
For purposes of this subdivision, a "qualified brewer" means a brewer, whether or not located in this state, manufacturing less than deleted text begin 100,000deleted text end new text begin 250,000new text end barrels of fermented malt beverages in the calendar year immediately preceding the calendar year for which the credit under this subdivision is claimed. In determining the number of barrels, all brands or labels of a brewer must be combined. All facilities for the manufacture of fermented malt beverages owned or controlled by the same person, corporation, or other entity must be treated as a single brewer.
new text begin This section is effective for determinations based on calendar year 2012 production and thereafter. new text end
"Cigarettes" means and includes any roll for smoking, made wholly or in part of tobacco, irrespective of size and shape and whether or not such tobacco is flavored, adulterated or mixed with any other ingredient, the wrapper or cover of which is made of paper or any other substance or material except new text begin whole new text end tobacconew text begin leaf, and includes any cigarette as defined in section 297F.01, subdivision 3new text end .
new text begin This section is effective July 1, 2013. new text end
(a) For purposes of this section, the following terms have the meanings given, unless the language or context clearly provides otherwise.
(b) "Consumer" means an individual who purchases, receives, or possesses tobacco products for personal consumption and not for resale.
(c) "Delivery sale" means:
(1) a sale of tobacco products to a consumer in this state when:
(i) the purchaser submits the order for the sale by means of a telephonic or other method of voice transmission, the mail or any other delivery service, or the Internet or other online service; or
(ii) the tobacco products are delivered by use of the mail or other delivery service; or
(2) a sale of tobacco products that satisfies the criteria in clause (1), item (i), regardless of whether the seller is located inside or outside of the state.
A sale of tobacco products to an individual in this state must be treated as a sale to a consumer, unless the individual is licensed as a distributor or retailer of tobacco products.
(d) "Delivery service" means a person, including the United States Postal Service, that is engaged in the commercial delivery of letters, packages, or other containers.
(e) "Distributor" means a person, whether located inside or outside of this state, other than a retailer, who sells or distributes tobacco products in the state. Distributor does not include a tobacco products manufacturer, export warehouse proprietor, or importer with a valid permit under United States Code, title 26, section 5712 (1997), if the person sells or distributes tobacco products in this state only to distributors who hold valid and current licenses under the laws of a state, or to an export warehouse proprietor or another manufacturer. Distributor does not include a common or contract carrier that is transporting tobacco products under a proper bill of lading or freight bill that states the quantity, source, and destination of tobacco products, or a person who ships tobacco products through this state by common or contract carrier under a bill of lading or freight bill.
(f) "Retailer" means a person, whether located inside or outside this state, who sells or distributes tobacco products to a consumer in this state.
(g) "Tobacco products" means:
(1) cigarettes, as defined in section 297F.01, subdivision 3; deleted text begin anddeleted text end
(2) smokeless tobacco as defined in section 325F.76deleted text begin .deleted text end new text begin ; andnew text end
new text begin (3) premium cigars as defined in section 297F.01, subdivision 13a. new text end
new text begin This section is effective July 1, 2013. new text end
(a) Bingo, with the exception of linked bingo games, may be conducted without a license and without complying with sections 349.168, subdivisions 1 and 2; 349.17, subdivisions 4 and 5; 349.18, subdivision 1; and 349.19, if it is conducted:
(1) by an organization in connection with a county fair, the state fair, or a civic celebration and is not conducted for more than 12 consecutive days and is limited to no more than four separate applications for activities applied for and approved in a calendar year; or
(2) by an organization that conducts bingo on four or fewer days in a calendar year.
An organization that holds a license to conduct lawful gambling under this chapter may not conduct bingo under this subdivision.
(b) Bingo may be conducted within a nursing home or a senior citizen housing project or by a senior citizen organization if the prizes for a single bingo game do not exceed $10, total prizes awarded at a single bingo occasion do not exceed $200, no more than two bingo occasions are held by the organization or at the facility each week, only members of the organization or residents of the nursing home or housing project are allowed to play in a bingo game, no compensation is paid for any persons who conduct the bingo, and a manager is appointed to supervise the bingo. Bingo conducted under this paragraph is exempt from sections 349.11 to 349.23, and the board may not require an organization that conducts bingo under this paragraph, or the manager who supervises the bingo, to register or file a report with the board. The gross receipts from bingo conducted under the limitations of this subdivision are exempt from taxation under chapter 297A.
(c) Raffles may be conducted by an organization without registering with the board if the value of all raffle prizes awarded by the organization in a calendar year does not exceed $1,500new text begin or, if the organization is a 501(c)(3) organization, if the value of all raffle prizes awarded by the organization at one event in a calendar year does not exceed $5,000new text end .
(d) Except as provided in paragraph (b), the organization must maintain all required records of excluded gambling activity for 3-1/2 years.
new text begin This section is effective July 1, 2013. new text end
All aircraft using the air space overlying the state of Minnesota or the airports thereof, except as set forth in section 360.55, shall be taxed in lieu of all other taxes thereon, on the basis and at the rate for the period January 1, 1966, to June 30, 1967, and for each fiscal year as follows.
The tax shall be deleted text begin at the rate of one percent of value; provided that the minimum tax on an aircraft subject to the provisions of sections 360.511 to 360.67 shall not be less than 25 percent of the tax on said aircraft computed on its base price or $50 whichever is the higher.deleted text end new text begin as follows:new text end
new text begin Base Price new text end | new text begin Tax new text end | |
new text begin Under $499,999 new text end | new text begin $100 new text end | |
new text begin $500,000 to $999,999 new text end | new text begin $200 new text end | |
new text begin $1,000,000 to $2,499,999 new text end | new text begin $2,000 new text end | |
new text begin $2,500,000 to $4,999,999 new text end | new text begin $4,000 new text end | |
new text begin $5,000,000 to $7,499,999 new text end | new text begin $7,500 new text end | |
new text begin $7,500,000 to $9,999,999 new text end | new text begin $10,000 new text end | |
new text begin $10,000,000 to $12,499,999 new text end | new text begin $12,500 new text end | |
new text begin $12,500,000 to $14,999,999 new text end | new text begin $15,000 new text end | |
new text begin $15,000,000 to $17,499,999 new text end | new text begin $17,500 new text end | |
new text begin $17,500,000 to $19,999,999 new text end | new text begin $20,000 new text end | |
new text begin $20,000,000 to $22,499,999 new text end | new text begin $22,500 new text end | |
new text begin $22,500,000 to $24,999,999 new text end | new text begin $25,000 new text end | |
new text begin $25,000,000 to $27,499,999 new text end | new text begin $27,500 new text end | |
new text begin $27,500,000 to $29,999,999 new text end | new text begin $30,000 new text end | |
new text begin $30,000,000 to $39,999,999 new text end | new text begin $50,000 new text end | |
new text begin $40,000,000 and over new text end | new text begin $75,000 new text end |
"First year of life" means the year the aircraft was manufactured.
For the purpose of fixing a base price for taxation deleted text begin from which depreciation in value at a fixed percent per annum can be counted, suchdeleted text end new text begin , the base new text end price is defined as follows:
(a) The base price for taxation of an aircraft shall be the manufacturer's list price.
(b) The commissioner shall have authority to fix the base value for taxation purposes of any aircraft of which no such similar or corresponding model has been manufactured, and of any rebuilt or foreign aircraft, any aircraft on which a record of the list price is not available, or any military aircraft converted for civilian use, using as a basis for deleted text begin such deleted text end valuation the list price of aircraft with comparable performance characteristics, and taking into consideration the age and condition of the aircraft.
Models shall be deemed similar if substantially alike and of the same make. Models shall be deemed to be corresponding models for the purpose of taxation under sections 360.54 to 360.67 if of the same make and having approximately the same weight and type of frame and the same style and size of motor.
deleted text begin After the first year of aircraft life the base value for taxation purposes shall be reduced as follows: ten percent the second year, and 15 percent the third and each succeeding year thereafter, but in no event shall such tax be reduced below the minimum. deleted text end
When an aircraft first becomes subject to taxation during the period for which the tax is to be paid, the tax on it shall be for the remainder of that period, prorated on a monthly basis of 1/12 of the annual tax for each calendar month counting the month during which it becomes subject to the tax as the first month of such period.
Every aircraft subject to the provisions of sections 360.511 to 360.67 which has at any time since April 19, 1945, used the air space overlying the state of Minnesota or the airports thereof shall be taxed for the period from January 1, 1966, through June 30, 1967, and for each fiscal year thereafter in which it is so used. Any aircraft which does not use the air space overlying the state of Minnesota or the airports thereof at any time during the period of January 1, 1966, to and including June 30, 1967, or at any time during any fiscal year thereafter shall not be subject to the tax provided by sections 360.511 to 360.67 for such period. Rebuilt aircraft shall be subject to the tax provided by sections 360.511 to 360.67 for that portion of the aforesaid periods remaining after the aircraft has been rebuilt, prorated on a monthly basis.
Aircraft subject to taxation under the provisions of sections 360.54 to 360.67 shall not be assessed as personal property and shall be subject to no tax except as provided for by these sections. Aircraft not subject to taxation as provided in these sections, but subject to taxation as personal property within the state of Minnesota shall be assessed and valued at 33-1/3 percent of the market value thereof and taxed at the rate and in the manner provided by law for the taxation of ordinary personal property. If the person against whom any tax has been levied on the ad valorem basis because of any aircraft shall, during the calendar year for which such ad valorem tax is levied, be also taxed under provisions of these sections, then and in that event, upon proper showing, the commissioner of revenue shall grant to the person against whom said ad valorem tax was levied, such reduction or abatement of net tax capacity or taxes as was occasioned by the so-called ad valorem tax imposed. If the ad valorem tax upon any aircraft has been assessed against a dealer in new and used aircraft, and the tax imposed by these sections for the required period is thereafter paid by the owner, then and in that event, upon proper showing, the commissioner of revenue, upon the application of said dealer, shall grant to such dealer against whom said ad valorem tax was levied such reduction or abatement of net tax capacity or taxes as was occasioned by the so-called ad valorem tax imposed.
new text begin This section is effective July 1, 2014, and applies to aircraft tax due on or after that date. new text end
The proceeds of the tax imposed on aircraft under sections deleted text begin 360.54deleted text end new text begin 360.531 new text end to 360.67 and all fees and penalties provided for therein shall be collected by the commissioner and paid into the state treasury and credited to the state airports fund created by other statutes of this state.
There shall be transferred by the commissioner of management and budget each year from the state airports fund to the general fund in the state treasury the amount expended from the latter fund for expenses of administering the provisions of sections deleted text begin 360.54deleted text end new text begin 360.531 new text end to 360.67.
new text begin This section is effective July 1, 2014, and applies to aircraft tax due on or after that date. new text end
new text begin On or before June 30, 2016, and every four years thereafter, the commissioner of transportation, in consultation with the commissioner of revenue, shall prepare and submit to the chairs and ranking minority members of the senate and house of representatives committees with jurisdiction over transportation policy and budget, a report that identifies the amount and sources of annual revenues attributable to each type of aviation tax, along with annual expenditures from the state airports fund, and any other transfers out of the fund, during the previous four years. The report must include draft legislation for any recommended statutory changes to ensure the future adequacy of the state airports fund. new text end
new text begin This section is effective July 1, 2014, and applies to aircraft tax due on or after that date. new text end
new text begin (a) A floor stocks tax is imposed on every person engaged in the business in this state as a distributor, retailer, subjobber, vendor, manufacturer, or manufacturer's representative of cigarettes, on the stamped cigarettes and unaffixed stamps in the person's possession or under the person's control at 12:01 a.m. on July 1, 2013. The tax is imposed at the rate of 80 mills on each cigarette plus the additional cigarette sales tax determined by an adjustment to the weighted average retail price which reflects the price including the increased tax. new text end
new text begin (b) Each distributor, on or before July 11, 2013, shall file a return with the commissioner of revenue, in the form the commissioner prescribes, showing the stamped cigarettes and unaffixed stamps on hand at 12:01 a.m. on July 1, 2013, and the amount of tax due on the cigarettes and unaffixed stamps. Each retailer, subjobber, vendor, manufacturer, or manufacturer's representative, on or before July 11, 2013, shall file a return with the commissioner, in the form the commissioner prescribes, showing the cigarettes on hand at 12:01 a.m. on July 1, 2013, and the amount of tax due on the cigarettes. The tax imposed by this section is due and payable on or before September 4, 2013, and after that date bears interest at the rate of one percent per month. new text end
new text begin The tax imposed by this section is subject to the audit, assessment, interest, appeal, refund, penalty, enforcement, administrative, and collection provisions of Minnesota Statutes, chapters 270C and 297F. The commissioner of revenue may require a distributor to receive and maintain copies of floor stocks fee returns filed by all persons requesting a credit for returned cigarettes. new text end
new text begin (a) The commissioner of revenue shall deposit $26,500,000 of the revenues from the tax under this section in the state treasury and credit them to the general reserve account established under Minnesota Statutes 297E.021, subdivision 4. new text end
new text begin (b) The commissioner of revenue shall deposit any revenue remaining after the transfer under paragraph (a) to the general fund. new text end
new text begin This section is effective July 1, 2013. new text end
new text begin Notwithstanding the provisions of Minnesota Statutes, section 297F.25, the commissioner shall adjust the weighted average retail price in section 297F.25, subdivision 1, on July 1, 2013, to reflect the price changes under this act. This weighted average shall be used to compute cigarette sales tax under Minnesota Statutes, section 297F.25, subdivision 1, until December 31, 2013, when the commissioner shall resume annual adjustments to the weighted average sales price. The commissioner's determination of the adjustment that takes effect on January 1, 2014, must be limited to the change in the weighted average retail price that occurs during calendar year 2013 but after July 15, 2013. new text end
new text begin This section is effective July 1, 2013. new text end
new text begin (a) The commissioner of revenue shall report to the 2014 legislature on the tobacco tax collection system, including recommendations to improve compliance under the excise tax for both cigarettes and other tobacco products. The purpose of the report is to provide information and guidance to the legislature on improvements to the tobacco tax collection system to: new text end
new text begin (1) provide a unified system of collecting both the cigarette and other tobacco taxes, regardless of category, size, or shape, that ensures the highest reasonable rates of tax collection; new text end
new text begin (2) discourage tax evasion; and new text end
new text begin (3) help to prevent illegal sale of tobacco products, which may make these products more accessible to youth. new text end
new text begin (b) In the report, the commissioner shall: new text end
new text begin (1) provide a detailed review of the present excise tax collection and compliance system as it applies to both cigarettes and other tobacco products. This must include an assessment of the levels of compliance for each category of products and the effect of the stamping requirement on compliance for each category of products and the effect of the stamping requirement on compliance rates for cigarettes relative to other tobacco products. It also must identify any weaknesses in the system; new text end
new text begin (2) survey the methods of collection and enforcement used by other states or nations, including identifying and discussing emerging best practices that ensure tracking of both cigarettes and other tobacco products and result in the highest rates of tax collection and compliance. These best practices must consider high-technology alternatives, such as use of bar codes, radio-frequency identification tags, or similar mechanisms for tracking compliance; new text end
new text begin (3) evaluate the adequacy and effectiveness of the existing penalties and other sanctions for noncompliance; new text end
new text begin (4) evaluate the adequacy of the resources allocated by the state to enforce the tobacco tax and prevention laws; and new text end
new text begin (5) make recommendations on implementation of a comprehensive tobacco tax collection system for Minnesota that can be implemented by January 1, 2014, including: new text end
new text begin (i) recommendations on the specific steps needed to institute and implement the new system, including estimates of the state's costs of doing so and any additional personnel requirements; new text end
new text begin (ii) recommendations on methods to recover the cost of implementing the system from the industry; new text end
new text begin (iii) evaluation of the extent to which the proposed system is sufficiently flexible and adaptable to adjust to modifications in the construction, packaging, formatting, and marketing of tobacco products by the industry; and new text end
new text begin (iv) recommendations to modify existing penalties or to impose new penalties or other sanctions to ensure compliance with the system. new text end
new text begin The report required by subdivision 1 is due February 15, 2014. new text end
new text begin The report required under this section must be made in the manner provided under Minnesota Statutes, section 3.195. In addition, copies must be provided to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over taxation. new text end
new text begin (a) $100,000 is appropriated from the general fund to the commissioner of revenue for fiscal year 2014 for the cost of preparing the report under subdivision 1. new text end
new text begin (b) The appropriation under this subdivision is a onetime appropriation and is not included in the base budget. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin Minnesota Statutes 2012, sections 16A.725; and 256.9658, new text end new text begin are repealed. new text end
new text begin This section is effective July 1, 2013. new text end
(a) For the purposes of this section, the following terms have the meanings given.
(b) "Qualified small business" means a business that has been certified by the commissioner under subdivision 2.
(c) "Qualified investor" means an investor who has been certified by the commissioner under subdivision 3.
(d) "Qualified fund" means a pooled angel investment network fund that has been certified by the commissioner under subdivision 4.
(e) "Qualified investment" means a cash investment in a qualified small business of a minimum of:
(1) $10,000 in a calendar year by a qualified investor; or
(2) $30,000 in a calendar year by a qualified fund.
A qualified investment must be made in exchange for common stock, a partnership or membership interest, preferred stock, debt with mandatory conversion to equity, or an equivalent ownership interest as determined by the commissioner.
(f) "Family" means a family member within the meaning of the Internal Revenue Code, section 267(c)(4).
(g) "Pass-through entity" means a corporation that for the applicable taxable year is treated as an S corporation or a general partnership, limited partnership, limited liability partnership, trust, or limited liability company and which for the applicable taxable year is not taxed as a corporation under chapter 290.
(h) "Intern" means a student of an accredited institution of higher education, or a former student who has graduated in the past six months from an accredited institution of higher education, who is employed by a qualified small business in a nonpermanent position for a duration of nine months or less that provides training and experience in the primary business activity of the business.
new text begin (i) "Liquidation event" means a conversion of qualified investment for cash, cash and other consideration, or any other form of equity or debt interest. new text end
new text begin This section is effective for qualified small businesses certified after June 30, 2013. new text end
(a) Businesses may apply to the commissioner for certification as a qualified small business for a calendar year. The application must be in the form and be made under the procedures specified by the commissioner, accompanied by an application fee of $150. Application fees are deposited in the small business investment tax credit administration account in the special revenue fund. The application for certification for 2010 must be made available on the department's Web site by August 1, 2010. Applications for subsequent years' certification must be made available on the department's Web site by November 1 of the preceding year.
(b) Within 30 days of receiving an application for certification under this subdivision, the commissioner must either certify the business as satisfying the conditions required of a qualified small business, request additional information from the business, or reject the application for certification. If the commissioner requests additional information from the business, the commissioner must either certify the business or reject the application within 30 days of receiving the additional information. If the commissioner neither certifies the business nor rejects the application within 30 days of receiving the original application or within 30 days of receiving the additional information requested, whichever is later, then the application is deemed rejected, and the commissioner must refund the $150 application fee. A business that applies for certification and is rejected may reapply.
(c) To receive certification, a business must satisfy all of the following conditions:
(1) the business has its headquarters in Minnesota;
(2) at least 51 percent of the business's employees are employed in Minnesota, and 51 percent of the business's total payroll is paid or incurred in the state;
(3) the business is engaged in, or is committed to engage in, innovation in Minnesota in one of the following as its primary business activity:
(i) using proprietary technology to add value to a product, process, or service in a qualified high-technology field;
(ii) researching or developing a proprietary product, process, or service in a qualified high-technology field; or
(iii) researching, developing, or producing a new proprietary technology for use in the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;
(4) other than the activities specifically listed in clause (3), the business is not engaged in real estate development, insurance, banking, lending, lobbying, political consulting, information technology consulting, wholesale or retail trade, leisure, hospitality, transportation, construction, ethanol production from corn, or professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants;
(5) the business has fewer than 25 employees;
(6) the business must pay its employees annual wages of at least 175 percent of the federal poverty guideline for the year for a family of four and must pay its interns annual wages of at least 175 percent of the federal minimum wage used for federally covered employers, except that this requirement must be reduced proportionately for employees and interns who work less than full-time, and does not apply to an executive, officer, or member of the board of the business, or to any employee who owns, controls, or holds power to vote more than 20 percent of the outstanding securities of the business;
(7) the business hasnew text begin (i)new text end not been in operation for more than ten yearsnew text begin , or (ii) the business has not been in operation for more than 20 years if the business is engaged in the research, development, or production of medical devices or pharmaceuticals for which United States Food and Drug Administration approval is required for use in the treatment or diagnosis of a disease or conditionnew text end ;
(8) the business has not previously received private equity investments of more than $4,000,000; deleted text begin anddeleted text end
(9) the business is not an entity disqualified under section 80A.50, paragraph (b), clause (3)deleted text begin .deleted text end new text begin ; andnew text end
new text begin (10) the business has not issued securities that are traded on a public exchange. new text end
(d) In applying the limit under paragraph (c), clause (5), the employees in all members of the unitary business, as defined in section 290.17, subdivision 4, must be included.
(e) In order for a qualified investment in a business to be eligible for tax creditsdeleted text begin ,deleted text end new text begin :new text end
new text begin (1)new text end the business must have applied for and received certification for the calendar year in which the investment was made prior to the date on which the qualified investment was madedeleted text begin .deleted text end new text begin ;new text end
new text begin (2) the business must not have issued securities that are traded on a public exchange; new text end
new text begin (3) the business must not issue securities that are traded on a public exchange within 180 days after the date on which the qualified investment was made; and new text end
new text begin (4) the business must not have a liquidation event within 180 days after the date on which the qualified investment was made. new text end
(f) The commissioner must maintain a list of businesses certified under this subdivision for the calendar year and make the list accessible to the public on the department's Web site.
(g) For purposes of this subdivision, the following terms have the meanings given:
(1) "qualified high-technology field" includes aerospace, agricultural processing, renewable energy, energy efficiency and conservation, environmental engineering, food technology, cellulosic ethanol, information technology, materials science technology, nanotechnology, telecommunications, biotechnology, medical device products, pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar fields; and
(2) "proprietary technology" means the technical innovations that are unique and legally owned or licensed by a business and includes, without limitation, those innovations that are patented, patent pending, a subject of trade secrets, or copyrighted.
new text begin This section is effective for qualified small businesses certified after June 30, 2013, except the amendments to paragraph (c), clause (7), are effective the day following final enactment. new text end
(a) Data contained in an application submitted to the commissioner under subdivision 2, 3, or 4 are nonpublic data, or private data on individuals, as defined in section 13.02, subdivision 9 or 12, except that the following data items are public:
(1) the namenew text begin , mailing address, telephone number, e-mail address, contact person's name, and industry typenew text end of a qualified small business upon approval of the application and certification by the commissioner under subdivision 2;
(2) the name of a qualified investor upon approval of the application and certification by the commissioner under subdivision 3;
(3) the name of a qualified fund upon approval of the application and certification by the commissioner under subdivision 4;
(4) for credit certificates issued under subdivision 5, the amount of the credit certificate issued, amount of the qualifying investment, the name of the qualifying investor or qualifying fund that received the certificate, and the name of the qualifying small business in which the qualifying investment was made;
(5) for credits revoked under subdivision 7, paragraph (a), the amount revoked and the name of the qualified investor or qualified fund; and
(6) for credits revoked under subdivision 7, paragraphs (b) and (c), the amount revoked and the name of the qualified small business.
(b) The following data, including data classified as nonpublic or private, must be provided to the consultant for use in conducting the program evaluation under subdivision 10:
(1) the commissioner of employment and economic development shall provide data contained in an application for certification received from a qualified small business, qualified investor, or qualified fund, and any annual reporting information received on a qualified small business, qualified investor, or qualified fund; and
(2) the commissioner of revenue shall provide data contained in any applicable tax returns of a qualified small business, qualified investor, or qualified fund.
new text begin This section is effective the day following final enactment. new text end
new text begin (a) For the purposes of this section, the terms defined in this subdivision have the meanings given to them. new text end
new text begin (b) "Eligible employer" means a taxpayer under section 290.01 with employees located in greater Minnesota. new text end
new text begin (c) "Eligible institution" means a Minnesota public postsecondary institution or a Minnesota private, nonprofit, baccalaureate degree-granting college or university. new text end
new text begin (d) "Eligible student" means a student enrolled in an eligible institution who has completed one-half of the credits necessary for the respective degree or certification. new text end
new text begin (e) "Greater Minnesota" means the area of the state outside of the counties of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright. new text end
new text begin The Office of Higher Education shall administer a greater Minnesota internship program through eligible institutions to provide credit at the eligible institution for internships and tax credits for eligible employers who hire interns for employment in greater Minnesota. new text end
new text begin (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. new text end
new text begin (b) To participate in the program, an eligible institution must: new text end
new text begin (1) enter into written agreements with eligible employers to provide internships that are at least 12 weeks long and located in greater Minnesota; new text end
new text begin (2) determine that the work experience of the internship is related to the eligible student's course of study; and new text end
new text begin (3) provide academic credit for the successful completion of the internship or ensure that it fulfills requirements necessary to complete a vocational technical education program. new text end
new text begin (c) To participate in the program, an eligible employer must enter into a written agreement with an eligible institution specifying that the intern: new text end
new text begin (1) would not have been hired without the tax credit described in subdivision 4; new text end
new text begin (2) did not work for the employer in the same or a similar job prior to entering the agreement; new text end
new text begin (3) does not replace an existing employee; new text end
new text begin (4) has not previously participated in the program; new text end
new text begin (5) will be employed at a location in greater Minnesota; new text end
new text begin (6) will be paid at least minimum wage for a minimum of 16 hours per week for a period of at least 12 weeks; and new text end
new text begin (7) will be supervised and evaluated by the employer. new text end
new text begin (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. new text end
new text begin (e) Participating eligible institutions and eligible employers must report annually to the office. The report must include at least the following: new text end
new text begin (1) the number of interns hired; new text end
new text begin (2) the number of hours and weeks worked by interns; and new text end
new text begin (3) the compensation paid to interns. new text end
new text begin (f) An internship required to complete an academic program does not qualify for the greater Minnesota internship program under this section. new text end
new text begin An employer is entitled to a tax credit as provided in section 290.06, subdivision 36. The total amount of credits allocated in a calendar year must not exceed $2,000,000. The office shall determine relevant criteria to allocate the tax credits including the geographic distribution of credits to work locations outside the metropolitan area, and shall allocate credits to eligible institutions that meet the criteria on a first come, first served basis. Any credits allocated to an institution but not used may be reallocated to eligible institutions. The office shall allocate a portion of the administrative fee under section 290.06, subdivision 36, to participating eligible institutions for their administrative costs. new text end
new text begin (a) By February 1, 2015, the office and the Department of Revenue shall report to the legislature on the greater Minnesota internship program. The report must include at least the following: new text end
new text begin (1) the number and dollar amount of credits allowed; new text end
new text begin (2) the number of interns employed under the program; and new text end
new text begin (3) the cost of administering the program. new text end
new text begin (b) By February 1, 2016, the office and the Department of Revenue shall report to the legislature with an analysis of the effectiveness of the program in stimulating businesses to hire interns and in assisting participating interns in finding permanent career positions. This report must include the number of students who participated in the program who were subsequently employed full-time by the employer. new text end
new text begin This section is effective for taxable years beginning after December 31, 2013. new text end
(a) A corporation that is subject to the state's jurisdiction to tax under section 290.014, subdivision 5, must file a returndeleted text begin , except that a foreign operating corporation as defined in section 290.01, subdivision 6b, is not required to file a returndeleted text end .
(b) Members of a unitary business that are required to file a combined report on one return must designate a member of the unitary business to be responsible for tax matters, including the filing of returns, the payment of taxes, additions to tax, penalties, interest, or any other payment, and for the receipt of refunds of taxes or interest paid in excess of taxes lawfully due. The designated member must be a member of the unitary business that is filing the single combined report and either:
(1) a corporation that is subject to the taxes imposed by chapter 290; or
(2) a corporation that is not subject to the taxes imposed by chapter 290:
(i) Such corporation consents by filing the return as a designated member under this clause to remit taxes, penalties, interest, or additions to tax due from the members of the unitary business subject to tax, and receive refunds or other payments on behalf of other members of the unitary business. The member designated under this clause is a "taxpayer" for the purposes of this chapter and chapter 270C, and is liable for any liability imposed on the unitary business under this chapter and chapter 290.
(ii) If the state does not otherwise have the jurisdiction to tax the member designated under this clause, consenting to be the designated member does not create the jurisdiction to impose tax on the designated member, other than as described in item (i).
(iii) The member designated under this clause must apply for a business tax account identification number.
(c) The commissioner shall adopt rules for the filing of one return on behalf of the members of an affiliated group of corporations that are required to file a combined report. All members of an affiliated group that are required to file a combined report must file one return on behalf of the members of the group under rules adopted by the commissioner.
(d) If a corporation claims on a return that it has paid tax in excess of the amount of taxes lawfully due, that corporation must include on that return information necessary for payment of the tax in excess of the amount lawfully due by electronic means.
new text begin This section is effective for taxable years beginning after December 31, 2012. new text end
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 April 14, 2011, shall be in effect for taxable years beginning after December 31, 1996, and before January 1, 2012, and for taxable years beginning after December 31, 2012. The Internal Revenue Code of 1986, as amended through January 3, 2013, is in effect for taxable years beginning after December 31, 2011, and before January 1, 2013.
new text begin The provisions of sections 315 and 331 of the American Taxpayer Relief Act of 2012, Public Law 112-240, extension of increased expensing limitations and treatment of certain real property as section 179 property and extension and modification of bonus depreciation, are effective at the same time they become effective for federal purposes. new text end
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 This section is effective for taxable years beginning after December 31, 2012. new text end
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 (15)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 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 (15)deleted text end new text begin (12)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, excluding 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, but "active service" excludes 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 (16)deleted text end new text begin (13)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 (16)deleted text end new text begin (13)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 section 290.01, subdivision 19a, clause (16); deleted text begin anddeleted text end
(17) the amount of the net operating loss allowed under section 290.095, subdivision 11, paragraph (c)new text begin ; andnew text end
new text begin (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 Codenew text end .
new text begin This section is effective for taxable years beginning after December 31, 2012. new text end
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;
deleted text begin (8) the exempt foreign trade income of a foreign sales corporation under sections 921(a) and 291 of the Internal Revenue Code; deleted text end
deleted text begin (9)deleted text end new text begin (8)new text end the amount of percentage depletion deducted under sections 611 through 614 and 291 of the Internal Revenue Code;
deleted text begin (10)deleted text end new text begin (9)new text end 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 begin (11) the amount of any deemed dividend from a foreign operating corporation determined pursuant to section 290.17, subdivision 4, paragraph (g). The deemed dividend shall be reduced by the amount of the addition to income required by clauses (20), (21), (22), and (23); deleted text end
deleted text begin (12)deleted text end new text begin (10)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 (13) the amount of net income excluded under section 114 of the Internal Revenue Code; deleted text end
deleted text begin (14)deleted text end new text begin (11)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 (15)deleted text end new text begin (12)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 (16)deleted text end new text begin (13)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 (17)deleted text end new text begin (14)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 (18) for taxable years beginning before January 1, 2013, the exclusion allowed under section 139A of the Internal Revenue Code for federal subsidies for prescription drug plans; deleted text end
deleted text begin (19)deleted text end new text begin (15)new text end the amount of expenses disallowed under section 290.10, subdivision 2;new text begin andnew text end
deleted text begin (20) an amount equal to the interest and intangible expenses, losses, and costs paid, accrued, or incurred by any member of the taxpayer's unitary group to or for the benefit of a corporation that is a member of the taxpayer's unitary business group that qualifies as a foreign operating corporation. For purposes of this clause, intangible expenses and costs include: deleted text end
deleted text begin (i) expenses, losses, and costs for, or related to, the direct or indirect acquisition, use, maintenance or management, ownership, sale, exchange, or any other disposition of intangible property; deleted text end
deleted text begin (ii) losses incurred, directly or indirectly, from factoring transactions or discounting transactions; deleted text end
deleted text begin (iii) royalty, patent, technical, and copyright fees; deleted text end
deleted text begin (iv) licensing fees; and deleted text end
deleted text begin (v) other similar expenses and costs. deleted text end
deleted text begin For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent applications, trade names, trademarks, service marks, copyrights, mask works, trade secrets, and similar types of intangible assets. deleted text end
deleted text begin This clause does not apply to any item of interest or intangible expenses or costs paid, accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect to such item of income to the extent that the income to the foreign operating corporation is income from sources without the United States as defined in subtitle A, chapter 1, subchapter N, part 1, of the Internal Revenue Code; deleted text end
deleted text begin (21) except as already included in the taxpayer's taxable income pursuant to clause (20), any interest income and income generated from intangible property received or accrued by a foreign operating corporation that is a member of the taxpayer's unitary group. For purposes of this clause, income generated from intangible property includes: deleted text end
deleted text begin (i) income related to the direct or indirect acquisition, use, maintenance or management, ownership, sale, exchange, or any other disposition of intangible property; deleted text end
deleted text begin (ii) income from factoring transactions or discounting transactions; deleted text end
deleted text begin (iii) royalty, patent, technical, and copyright fees; deleted text end
deleted text begin (iv) licensing fees; and deleted text end
deleted text begin (v) other similar income. deleted text end
deleted text begin For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent applications, trade names, trademarks, service marks, copyrights, mask works, trade secrets, and similar types of intangible assets. deleted text end
deleted text begin This clause does not apply to any item of interest or intangible income received or accrued by a foreign operating corporation with respect to such item of income to the extent that the income is income from sources without the United States as defined in subtitle A, chapter 1, subchapter N, part 1, of the Internal Revenue Code; deleted text end
deleted text begin (22) the dividends attributable to the income of a foreign operating corporation that is a member of the taxpayer's unitary group in an amount that is equal to the dividends paid deduction of a real estate investment trust under section 561(a) of the Internal Revenue Code for amounts paid or accrued by the real estate investment trust to the foreign operating corporation; deleted text end
deleted text begin (23) the income of a foreign operating corporation that is a member of the taxpayer's unitary group in an amount that is equal to gains derived from the sale of real or personal property located in the United States; deleted text end
deleted text begin (24) for taxable years beginning before January 1, 2010, the additional amount allowed as a deduction for donation of computer technology and equipment under section 170(e)(6) of the Internal Revenue Code, to the extent deducted from taxable income; and deleted text end
deleted text begin (25)deleted text end new text begin (16)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 This section is effective for taxable years beginning after December 31, 2012. new text end
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) amounts disallowed for intangible drilling costs due to differences between this chapter and the Internal Revenue Code in taxable years beginning before January 1, 1987, as follows:
(i) to the extent the disallowed costs are represented by physical property, an amount equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09, subdivision 7, subject to the modifications contained in subdivision 19e; and
(ii) to the extent the disallowed costs are not represented by physical property, an amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section 290.09, subdivision 8;
(5) 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;
(6) 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;
(7) 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 deleted text begin (9)deleted text end new text begin (8)new text end , 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;
(8) 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;
(9) 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 deleted text begin section deleted text end deleted text begin 290.01,deleted text end subdivision 19c, clause (1), in a prior taxable year;
deleted text begin (10) 80 percent of royalties, fees, or other like income accrued or received from a foreign operating corporation or a foreign corporation which is part of the same unitary business as the receiving corporation, unless the income resulting from such payments or accruals is income from sources within the United States as defined in subtitle A, chapter 1, subchapter N, part 1, of the Internal Revenue Code; deleted text end
deleted text begin (11)deleted text end new text begin (10)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 (12)deleted text end new text begin (11)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 (13)deleted text end new text begin (12)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 (14)deleted text end new text begin (13)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 (15) for a corporation whose foreign sales corporation, as defined in section 922 of the Internal Revenue Code, constituted a foreign operating corporation during any taxable year ending before January 1, 1995, and a return was filed by August 15, 1996, claiming the deduction under section 290.21, subdivision 4, for income received from the foreign operating corporation, an amount equal to 1.23 multiplied by the amount of income excluded under section 114 of the Internal Revenue Code, provided the income is not income of a foreign operating company; deleted text end
deleted text begin (16)deleted text end new text begin (14)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 (17)deleted text end new text begin (15)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 (15)deleted text end new text begin (12)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 (15)deleted text end new text begin (12)new text end . The resulting delayed depreciation cannot be less than zero;
deleted text begin (18)deleted text end new text begin (16)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 (16)deleted text end new text begin (13)new text end , an amount equal to one-fifth of the amount of the addition; deleted text begin anddeleted text end
deleted text begin (19)deleted text end new text begin (17)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 deleted text begin section deleted text end deleted text begin 290.01,deleted text end subdivision 19c, clause deleted text begin (25).deleted text end new text begin (16); andnew text end
new text begin (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. new text end
new text begin This section is effective for taxable years beginning after December 31, 2012. new text end
(a) The income taxes imposed by this chapter upon married individuals filing joint returns and surviving spouses as defined in section 2(a) of the Internal Revenue Code must be computed by applying to their taxable net income the following schedule of rates:
(1) On the first deleted text begin $25,680deleted text end new text begin $35,480new text end , 5.35 percent;
(2) On all over deleted text begin $25,680deleted text end new text begin $35,480new text end , but not over deleted text begin $102,030deleted text end new text begin $140,960new text end , 7.05 percent;
(3) On all over deleted text begin $102,030deleted text end new text begin $140,960, but not over $250,000new text end , 7.85 percentdeleted text begin .deleted text end new text begin ;new text end
new text begin (4) On all over $250,000, 9.85 percent. new text end
Married individuals filing separate returns, estates, and trusts must compute their income tax by applying the above rates to their taxable income, except that the income brackets will be one-half of the above amounts.
(b) The income taxes imposed by this chapter upon unmarried individuals must be computed by applying to taxable net income the following schedule of rates:
(1) On the first deleted text begin $17,570deleted text end new text begin $24,270new text end , 5.35 percent;
(2) On all over deleted text begin $17,570deleted text end new text begin $24,270new text end , but not over deleted text begin $57,710deleted text end new text begin $79,730new text end , 7.05 percent;
(3) On all over deleted text begin $57,710deleted text end new text begin $79,730, but not over $150,000new text end , 7.85 percentdeleted text begin .deleted text end new text begin ;new text end
new text begin (4) On all over $150,000, 9.85 percent. new text end
(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as a head of household as defined in section 2(b) of the Internal Revenue Code must be computed by applying to taxable net income the following schedule of rates:
(1) On the first deleted text begin $21,630deleted text end new text begin $29,880new text end , 5.35 percent;
(2) On all over deleted text begin $21,630deleted text end new text begin $29,880new text end , but not over deleted text begin $86,910deleted text end new text begin $120,070new text end , 7.05 percent;
(3) On all over deleted text begin $86,910deleted text end new text begin $120,070, but not over $200,000new text end , 7.85 percentdeleted text begin .deleted text end new text begin ;new text end
new text begin (4) On all over $200,000, 9.85 percent. new text end
(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax of any individual taxpayer whose taxable net income for the taxable year is less than an amount determined by the commissioner must be computed in accordance with tables prepared and issued by the commissioner of revenue based on income brackets of not more than $100. The amount of tax for each bracket shall be computed at the rates set forth in this subdivision, provided that the commissioner may disregard a fractional part of a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.
(e) An individual who is not a Minnesota resident for the entire year must compute the individual's Minnesota income tax as provided in this subdivision. After the application of the nonrefundable credits provided in this chapter, the tax liability must then be multiplied by a fraction in which:
(1) the numerator is the individual's Minnesota source federal adjusted gross income as defined in section 62 of the Internal Revenue Code and increased by the additions required under section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), (13), and (16) to (18), and reduced by the Minnesota assignable portion of the subtraction for United States government interest under section 290.01, subdivision 19b, clause (1), and the subtractions under section 290.01, subdivision 19b, clauses (8), (9), (13), (14), (16), and (17), after applying the allocation and assignability provisions of section 290.081, clause (a), or 290.17; and
(2) the denominator is the individual's federal adjusted gross income as defined in section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), (13), and (16) to (18), and reduced by the amounts specified in section 290.01, subdivision 19b, clauses (1), (8), (9), (13), (14), (16), and (17).
new text begin This section is effective for taxable years beginning after December 31, 2012. new text end
(a) For taxable years beginning after December 31, deleted text begin 2000deleted text end new text begin 2013new text end , the minimum and maximum dollar amounts for each rate bracket for which a tax is imposed in subdivision 2c shall be adjusted for inflation by the percentage determined under paragraph (b). For the purpose of making the adjustment as provided in this subdivision all of the rate brackets provided in subdivision 2c shall be the rate brackets as they existed for taxable years beginning after December 31, deleted text begin 1999deleted text end new text begin 2012new text end , and before January 1, deleted text begin 2001deleted text end new text begin 2014new text end . The rate applicable to any rate bracket must not be changed. The dollar amounts setting forth the tax shall be adjusted to reflect the changes in the rate brackets. The rate brackets as adjusted must be rounded to the nearest $10 amount. If the rate bracket ends in $5, it must be rounded up to the nearest $10 amount.
(b) The commissioner shall adjust the rate brackets and 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 "2012"new text end shall be substituted for the word "1992." For deleted text begin 2001deleted text end new text begin 2014new 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 2012new text end , to the 12 months ending on August 31, deleted text begin 2000deleted text end new text begin 2013new text end , and in each subsequent year, from the 12 months ending on August 31, deleted text begin 1999deleted text end new text begin 2012new 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.
No later than December 15 of each year, the commissioner shall announce the specific percentage that will be used to adjust the tax rate brackets.
new text begin This section is effective for taxable years beginning after December 31, 2012. new text end
new text begin (a) A taxpayer who is an eligible employer may take a credit against the tax due under this chapter equal to the lesser of: new text end
new text begin (1) 40 percent of the compensation paid to an intern qualifying under the program established under section 136A.129, but not to exceed $2,000 per intern; or new text end
new text begin (2) the amount certified to the taxpayer by an eligible institution out of the institution's allocation of credits for the calendar year, as provided in section 136A.129. new text end
new text begin (b) Credits allowed to a partnership, a limited liability company taxed as a partnership, an S corporation, or multiple owners of property are passed through to the partners, members, shareholders, or owners, respectively, pro rata to each partner, member, shareholder, or owner based on their share of the entity's income for the taxable year. new text end
new text begin (c) If the amount of credit which the taxpayer is eligible to receive under this subdivision exceeds the taxpayer's tax liability under this chapter, the commissioner of revenue shall refund the excess to the taxpayer. new text end
new text begin (d) An amount necessary to pay claims for refund provided in this subdivision is appropriated from the general fund to the commissioner of revenue. new text end
new text begin (e) An amount equal to one percent of the total amount of the credits authorized under section 136A.129, subdivision 4, for an administrative fee for the Office of Higher Education and participating eligible institutions is appropriated from the general fund to the commissioner of revenue, for a transfer to the Office of Higher Education. new text end
new text begin (f) For purposes of this subdivision, the terms "eligible employer" and "eligible institution" have the meanings given in section 136A.129. new text end
new text begin This section is effective for taxable years beginning after December 31, 2013. new text end
(a) For purposes of this sectionnew text begin ,new text end the following terms have the meanings given.
(b) "Designated area" means a:
(1) combat zone designated by Executive Order from the President of the United States;
(2) qualified hazardous duty area, designated in Public Law; or
(3) location certified by the U. S. Department of Defense as eligible for combat zone tax benefits due to the location's direct support of military operations.
(c) "Active military service" means active duty service in any of the United States armed forces, the National Guard, or reserves.
(d) "Qualified individual" means an individual who hasnew text begin :new text end
(1) deleted text begin either (i)deleted text end new text begin met one of the following criteria:new text end
new text begin (i) hasnew text end served at least 20 years in the military deleted text begin ordeleted text end new text begin ;new text end
(ii) has a service-connected disability rating of 100 percent for a total and permanent disability; new text begin ornew text end
new text begin (iii) has been determined by the military to be eligible for compensation from a pension or other retirement pay from the federal government for service in the military, as computed under United States Code, title 10, sections 1401 to 1414, 1447 to 1455, or 12733; new text end and
(2) separated from military service before the end of the taxable year.
(e) "Adjusted gross income" has the meaning given in section 61 of the Internal Revenue Code.
new text begin This section is effective for taxable years beginning after December 31, 2012. new text end
(a)(1) The credit for a taxable year beginning before January 1, 2010, new text begin and after December 31, 2012, new text end shall not exceed the liability for tax. "Liability for tax" for purposes of this section means the new text begin sum of the new text end tax imposed under section 290.06, deleted text begin subdivisiondeleted text end new text begin subdivisionsnew text end 1new text begin and 2cnew text end , for the taxable year reduced by the sum of the nonrefundable credits allowed under this chapternew text begin , on all of the entities required to be included on the combined report of the unitary business. If the amount of the credit allowed exceeds the liability for tax of the taxpayer, but is allowed as a result of the liability for tax of other members of the unitary group for the taxable year, the taxpayer must allocate the excess as a research credit to another member of the unitary groupnew text end .
(2) In the case of a corporation which is a partner in a partnership, the credit allowed for the taxable year shall not exceed the lesser of the amount determined under clause (1) for the taxable year or an amount (separately computed with respect to the corporation's interest in the trade or business or entity) equal to the amount of tax attributable to that portion of taxable income which is allocable or apportionable to the corporation's interest in the trade or business or entity.
(b) If the amount of the credit determined under this section for any taxable year exceeds the limitation under clause (a)new text begin including amounts allocated to other members of the unitary groupnew text end , the excess shall be a research credit carryover to each of the 15 succeeding taxable years. The entire amount of the excess unused credit for the taxable year shall be carried first to the earliest of the taxable years to which the credit may be carried and then to each successive year to which the credit may be carried. The amount of the unused credit which may be added under this clause shall not exceed the taxpayer's liability for tax less the research credit for the taxable year.
new text begin This section is effective for taxable years beginning after December 31, 2012. new text end
If the amount of credit allowed in this section for qualified research expenses incurred in taxable years beginning after December 31, 2009, new text begin and before January 1, 2013, new text end exceeds the taxpayer's tax liability under this chapter, the commissioner shall refund the excess amount. The credit allowed for qualified research expenses incurred in taxable years beginning after December 31, 2009,new text begin and before January 1, 2013, new text end must be used before any research credit earned under subdivision 3.
new text begin This section is effective for taxable years beginning after December 31, 2012. new text end
(a) For purposes of this section, the following terms have the meanings given.
(b) "Account" means the historic credit administration account in the special revenue fund.
(c) "Office" means the State Historic Preservation Office of the Minnesota Historical Society.
(d) "Project" means rehabilitation of a certified historic structure, as defined in section 47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is allowed a federal credit deleted text begin under section 47(a)(2) of the Internal Revenue Codedeleted text end .
(e) "Society" means the Minnesota Historical Society.
new text begin (f) "Federal credit" means the credit allowed under section 47(a)(2) of the Internal Revenue Code. new text end
new text begin (g) "Placed in service" has the meaning used in section 47 of the Internal Revenue Code. new text end
new text begin (h) "Qualified rehabilitation expenditures" has the meaning given in section 47 of the Internal Revenue Code. new text end
new text begin This section is effective the day following final enactment. new text end
(a) To qualify for a credit or grant under this section, the developer of a project must apply to the office before the rehabilitation begins. The application must contain the information and be in the form prescribed by the office. The office may collect a fee for application of up to deleted text begin $5,000deleted text end new text begin 0.5 percent of qualified rehabilitation expenditures, up to $40,000new text end , based on estimated qualified rehabilitation deleted text begin expensesdeleted text end new text begin expendituresnew text end , to offset costs associated with personnel and administrative expenses related to administering the credit and preparing the economic impact report in subdivision 9. Application fees are deposited in the account. The application must indicate if the application is for a credit or a grant in lieu of the credit or a combination of the two and designate the taxpayer qualifying for the credit or the recipient of the grant.
(b) Upon approving an application for credit, the office shall issue allocation certificates that:
(1) verify eligibility for the credit or grant;
(2) state the amount of credit or grant anticipated with the project, with the credit amount equal to 100 percent and the grant amount equal to 90 percent of the federal credit anticipated in the application;
(3) state that the credit or grant allowed may increase or decrease if the federal credit the project receives at the time it is placed in service is different than the amount anticipated at the time the allocation certificate is issued; and
(4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer or grant recipient is entitled to receive the credit or grant at the time the project is placed in service, provided that date is within three calendar years following the issuance of the allocation certificate.
(c) The office, in consultation with the commissioner deleted text begin of revenuedeleted text end , shall determine if the project is eligible for a credit or a grant under this section new text begin and must notify the developer in writing of its determinationnew text end . Eligibility for the credit is subject to review and audit by the commissioner deleted text begin of revenuedeleted text end .
(d) The federal credit recapture and repayment requirements under section 50 of the Internal Revenue Code do not apply to the credit allowed under this section.
new text begin (e) Any decision of the office under paragraph (c) may be challenged as a contested case under chapter 14. The contested case proceeding must be initiated within 45 days of the date of written notification by the office. new text end
new text begin This section is effective the day following final enactment and the change in paragraph (a) applies to applications first received on or after the day following final enactment. new text end
(a)(1) The developer of a project for which the office has issued an allocation certificate must notify the office when the project is placed in service. Upon verifying that the project has been placed in service, and was allowed a federal credit, the office must issue a credit certificate to the taxpayer designated in the application or must issue a grant to the recipient designated in the application. The credit certificate must state the amount of the credit.
(2) The credit amount equals the federal credit allowed for the project.
(3) The grant amount equals 90 percent of the federal credit allowed for the project.
(b) The recipient of a credit certificate may assign the certificate to another taxpayer, which is then allowed the credit under this section or section 297I.20, subdivision 3. new text begin An assignment is not valid unless the assignee notifies the commissioner within 30 days of the date that the assignment is made. new text end The commissioner shall prescribe the forms necessary for new text begin notifying the commissioner of the assignment of a credit certificate and for new text end claiming a credit by assignment.
new text begin (c) Credits passed through to partners, members, shareholders, or owners pursuant to subdivision 5 are not an assignment of a credit certificate under this subdivision. new text end
new text begin (d) A grant agreement between the office and the recipient of a grant may allow the grant to be issued to another individual or entity. new text end
new text begin This section is effective the day following final enactment. new text end
Credits granted to a partnership, a limited liability company taxed as a partnership, S corporation, or multiple owners of property are passed through to the partners, members, shareholders, or owners, respectively, pro rata to each partner, member, shareholder, or owner based on their share of the entity's assets or as specially allocated in their organizational documentsnew text begin or any other executed agreementnew text end , as of the last day of the taxable year.
new text begin This section is effective the day following final enactment. new text end
This section expires after fiscal year deleted text begin 2015deleted text end new text begin 2021new text end , except that the office's authority to issue credit certificates under subdivision 4 based on allocation certificates that were issued before fiscal year deleted text begin 2016deleted text end new text begin 2022new text end remains in effect through deleted text begin 2018deleted text end new text begin 2024new text end , and the reporting requirements in subdivision 9 remain in effect through the year following the year in which all allocation certificates have either been canceled or resulted in issuance of credit certificates, or deleted text begin 2019deleted text end new text begin 2025new text end , whichever is earlier.
new text begin This section is effective the day following final enactment. new text end
In addition to all other taxes imposed by this chapter a tax is imposed on individuals, estates, and trusts equal to the excess (if any) of
(a) an amount equal to deleted text begin 6.4deleted text end new text begin 6.75new text end percent of alternative minimum taxable income after subtracting the exemption amount, over
(b) the regular tax for the taxable year.
new text begin This section is effective for taxable years beginning after December 31, 2012. new text end
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), (12), (13), and (16) to (18);
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), and (16); 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 deleted text begin 6.4deleted text end new text begin 6.75new text end percent of alternative minimum taxable income after subtracting the exemption amount determined under subdivision 3.
new text begin This section is effective for taxable years beginning after December 31, 2012. new text end
(a) A credit is allowed against the tax imposed by this chapter on individuals, trusts, and estates equal to the minimum tax credit for the taxable year. The minimum tax credit equals the adjusted net minimum tax for taxable years beginning after December 31, 1988, reduced by the minimum tax credits allowed in a prior taxable year. The credit may not exceed the excess (if any) for the taxable year of
(1) the regular tax, over
(2) the greater of (i) the tentative alternative minimum tax, or (ii) zero.
(b) The adjusted net minimum tax for a taxable year equals the lesser of the net minimum tax or the excess (if any) of
(1) the tentative minimum tax, over
(2) deleted text begin 6.4deleted text end new text begin 6.75new text end percent of the sum of
(i) adjusted gross income as defined in section 62 of the Internal Revenue Code,
(ii) interest income as defined in section 290.01, subdivision 19a, clause (1),
(iii) interest on specified private activity bonds, as defined in section 57(a)(5) of the Internal Revenue Code, to the extent not included under clause (ii),
(iv) depletion as defined in section 57(a)(1), determined without regard to the last sentence of paragraph (1), of the Internal Revenue Code, less
(v) the deductions allowed in computing alternative minimum taxable income provided in subdivision 2, paragraph (a), clause (2) of the first series of clauses and clauses (1), (2), and (3) of the second series of clauses, and
(vi) the exemption amount determined under subdivision 3.
In the case of an individual who is not a Minnesota resident for the entire year, adjusted net minimum tax must be multiplied by the fraction defined in section 290.06, subdivision 2c, paragraph (e). In the case of a trust or estate, adjusted net minimum tax must be multiplied by the fraction defined under subdivision 4, paragraph (b).
new text begin This section is effective for taxable years beginning after December 31, 2012. new text end
"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) For purposes of the depreciation adjustments under section 56(a)(1) and 56(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal income tax purposes, including any modification made in a taxable year under section 290.01, subdivision 19e, or Minnesota Statutes 1986, section 290.09, subdivision 7, paragraph (c).
For taxable years beginning after December 31, 2000, the amount of any remaining modification made under section 290.01, subdivision 19e, or Minnesota Statutes 1986, section 290.09, subdivision 7, paragraph (c), not previously deducted is a depreciation allowance in the first taxable year after December 31, 2000.
(2) 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 (15)deleted text end new text begin (12)new text end , is disallowed in determining alternative minimum taxable income.
(3) The subtraction for depreciation allowed under section 290.01, subdivision 19d, clause deleted text begin (17)deleted text end new text begin (15)new text end , is allowed as a depreciation deduction in determining alternative minimum taxable income.
(4) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d) of the Internal Revenue Code does not apply.
(5) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal Revenue Code does not apply.
deleted text begin (6) The special rule for dividends from section 936 companies under section 56(g)(4)(C)(iii) does not apply. deleted text end
deleted text begin (7)deleted text end new text begin (6)new text end The tax preference for depletion under section 57(a)(1) of the Internal Revenue Code does not apply.
deleted text begin (8)deleted text end new text begin (7)new text end The tax preference for intangible drilling costs under section 57(a)(2) of the Internal Revenue Code must be calculated without regard to subparagraph (E) and the subtraction under section 290.01, subdivision 19d, clause (4).
deleted text begin (9)deleted text end new text begin (8)new text end The tax preference for tax exempt interest under section 57(a)(5) of the Internal Revenue Code does not apply.
deleted text begin (10)deleted text end new text begin (9)new text end The tax preference for charitable contributions of appreciated property under section 57(a)(6) of the Internal Revenue Code does not apply.
deleted text begin (11)deleted text end new text begin (10)new text end For purposes of calculating the tax preference for accelerated depreciation or amortization on certain property placed in service before January 1, 1987, under section 57(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the deduction allowed under section 290.01, subdivision 19e.
For taxable years beginning after December 31, 2000, the amount of any remaining modification made under section 290.01, subdivision 19e, not previously deducted is a depreciation or amortization allowance in the first taxable year after December 31, 2004.
deleted text begin (12)deleted text end new text begin (11)new text end 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.
deleted text begin (13)deleted text end new text begin (12)new text end 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), new text begin or new text end (ii) the amount of refunds of income, excise, or franchise taxes subtracted as provided in section 290.01, subdivision 19d, clause (9)deleted text begin , or (iii) the amount of royalties, fees or other like income subtracted as provided in section 290.01, subdivision 19d, clause (10)deleted text end .
deleted text begin (14)deleted text end new text begin (13)new text end Alternative minimum taxable income excludes the income from operating in a job opportunity building zone as provided under section 469.317.
deleted text begin (15)deleted text end new text begin (14)new text end Alternative minimum taxable income excludes the income from operating in a biotechnology and health sciences industry zone as provided under section 469.337.
Items of tax preference must not be reduced below zero as a result of the modifications in this subdivision.
new text begin This section is effective for taxable years beginning after December 31, 2012. new text end
(a) In addition to the tax imposed by this chapter without regard to this section, the franchise tax imposed on a corporation required to file under section 289A.08, subdivision 3, other than a corporation treated as an "S" corporation under section 290.9725 for the taxable year includes a tax equal to the following amounts:
If the sum of the corporation's Minnesota property, payrolls, and sales or receipts is: | the tax equals: | ||||||||
deleted text begin less thandeleted text end | deleted text begin $ deleted text end | deleted text begin 500,000 deleted text end | deleted text begin $ deleted text end | deleted text begin 0 deleted text end | |||||
deleted text begin $ deleted text end | deleted text begin 500,000 deleted text end | deleted text begin to deleted text end | deleted text begin $ deleted text end | deleted text begin 999,999 deleted text end | deleted text begin $ deleted text end | deleted text begin 100 deleted text end | |||
deleted text begin $ deleted text end | deleted text begin 1,000,000 deleted text end | deleted text begin to deleted text end | deleted text begin $ deleted text end | deleted text begin 4,999,999 deleted text end | deleted text begin $ deleted text end | deleted text begin 300 deleted text end | |||
deleted text begin $ deleted text end | deleted text begin 5,000,000 deleted text end | deleted text begin to deleted text end | deleted text begin $ deleted text end | deleted text begin 9,999,999 deleted text end | deleted text begin $ deleted text end | deleted text begin 1,000 deleted text end | |||
deleted text begin $ deleted text end | deleted text begin 10,000,000 deleted text end | deleted text begin to deleted text end | deleted text begin $ deleted text end | deleted text begin 19,999,999 deleted text end | deleted text begin $ deleted text end | deleted text begin 2,000 deleted text end | |||
deleted text begin $ deleted text end | deleted text begin 20,000,000 deleted text end | deleted text begin ordeleted text end | deleted text begin more deleted text end | deleted text begin $ deleted text end | deleted text begin 5,000 deleted text end | ||||
new text begin less than new text end | new text begin $ new text end | new text begin 930,000 new text end | new text begin $ new text end | new text begin 0 new text end | |||||
new text begin $ new text end | new text begin 930,000 new text end | new text begin to new text end | new text begin $ new text end | new text begin 1,869,999 new text end | new text begin $ new text end | new text begin 190 new text end | |||
new text begin $ new text end | new text begin 1,870,000 new text end | new text begin to new text end | new text begin $ new text end | new text begin 9,339,999 new text end | new text begin $ new text end | new text begin 560 new text end | |||
new text begin $ new text end | new text begin 9,340,000 new text end | new text begin to new text end | new text begin $ new text end | new text begin 18,679,999 new text end | new text begin $ new text end | new text begin 1,870 new text end | |||
new text begin $ new text end | new text begin 18,680,000 new text end | new text begin to new text end | new text begin $ new text end | new text begin 37,359,999 new text end | new text begin $ new text end | new text begin 3,740 new text end | |||
new text begin $ new text end | new text begin 37,360,000 new text end | new text begin or new text end | new text begin more new text end | new text begin $ new text end | new text begin 9,340 new text end |
(b) A tax is imposed for each taxable year on a corporation required to file a return under section 289A.12, subdivision 3, that is treated as an "S" corporation under section 290.9725 and on a partnership required to file a return under section 289A.12, subdivision 3, other than a partnership that derives over 80 percent of its income from farming. The tax imposed under this paragraph is due on or before the due date of the return for the taxpayer due under section 289A.18, subdivision 1. The commissioner shall prescribe the return to be used for payment of this tax. The tax under this paragraph is equal to the following amounts:
If the sum of the S corporation's or partnership's Minnesota property, payrolls, and sales or receipts is: | the tax equals: | ||||||||
deleted text begin less than deleted text end | deleted text begin $ deleted text end | deleted text begin 500,000 deleted text end | deleted text begin $ deleted text end | deleted text begin 0 deleted text end | |||||
deleted text begin $ deleted text end | deleted text begin 500,000 deleted text end | deleted text begin to deleted text end | deleted text begin $ deleted text end | deleted text begin 999,999 deleted text end | deleted text begin $ deleted text end | deleted text begin 100 deleted text end | |||
deleted text begin $ deleted text end | deleted text begin 1,000,000 deleted text end | deleted text begin to deleted text end | deleted text begin $ deleted text end | deleted text begin 4,999,999 deleted text end | deleted text begin $ deleted text end | deleted text begin 300 deleted text end | |||
deleted text begin $ deleted text end | deleted text begin 5,000,000 deleted text end | deleted text begin to deleted text end | deleted text begin $ deleted text end | deleted text begin 9,999,999 deleted text end | deleted text begin $ deleted text end | deleted text begin 1,000 deleted text end | |||
deleted text begin $ deleted text end | deleted text begin 10,000,000 deleted text end | deleted text begin to deleted text end | deleted text begin $ deleted text end | deleted text begin 19,999,999 deleted text end | deleted text begin $ deleted text end | deleted text begin 2,000 deleted text end | |||
deleted text begin $ deleted text end | deleted text begin 20,000,000 deleted text end | deleted text begin or deleted text end | deleted text begin more deleted text end | deleted text begin $ deleted text end | deleted text begin 5,000 deleted text end | ||||
new text begin less than new text end | new text begin $ new text end | new text begin 930,000 new text end | new text begin $ new text end | new text begin 0 new text end | |||||
new text begin $ new text end | new text begin 930,000 new text end | new text begin to new text end | new text begin $ new text end | new text begin 1,869,999 new text end | new text begin $ new text end | new text begin 190 new text end | |||
new text begin $ new text end | new text begin 1,870,000 new text end | new text begin to new text end | new text begin $ new text end | new text begin 9,339,999 new text end | new text begin $ new text end | new text begin 560 new text end | |||
new text begin $ new text end | new text begin 9,340,000 new text end | new text begin to new text end | new text begin $ new text end | new text begin 18,679,999 new text end | new text begin $ new text end | new text begin 1,870 new text end | |||
new text begin $ new text end | new text begin 18,680,000 new text end | new text begin to new text end | new text begin $ new text end | new text begin 37,359,999 new text end | new text begin $ new text end | new text begin 3,740 new text end | |||
new text begin $ new text end | new text begin 37,360,000 new text end | new text begin or new text end | new text begin more new text end | new text begin $ new text end | new text begin 9,340 new text end |
new text begin (c) The commissioner shall adjust the dollar amounts of both the tax and the property, payrolls, and sales or receipts thresholds in paragraphs (a) and (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 "2012" must be substituted for the word "1992." For 2014, the commissioner shall determine the percentage change from the 12 months ending on August 31, 2012, to the 12 months ending on August 31, 2013, and in each subsequent year, from the 12 months ending on August 31, 2012, to the 12 months ending on August 31 of the year preceding the taxable year. The determination of the commissioner pursuant to this subdivision is not a "rule" subject to the Administrative Procedure Act contained in chapter 14. The tax amounts as adjusted must be rounded to the nearest $10 amount and the threshold amounts must be adjusted to the nearest $10,000 amount. For tax amounts that end in $5, the amount is rounded up to the nearest $10 amount and for the threshold amounts that end in $5,000, the amount is rounded up to the nearest $10,000. new text end
new text begin This section is effective for taxable years beginning after December 31, 2012. new text end
(a) The term "net operating loss" as used in this section shall mean a net operating loss as defined in section 172(c) of the Internal Revenue Code, with the modifications specified in subdivision 4. The deductions provided in section 290.21 deleted text begin and the modification provided in section 290.01, subdivision 19d, clause (10),deleted text end cannot be used in the determination of a net operating loss.
(b) The term "net operating loss deduction" as used in this section means the aggregate of the net operating loss carryovers to the taxable year, computed in accordance with subdivision 3. The provisions of section 172(b) of the Internal Revenue Code relating to the carryback of net operating losses, do not apply.
new text begin This section is effective for taxable years beginning after December 31, 2012. new text end
deleted text begin Except as provided in section 290.17, subdivision 4, paragraph (i),deleted text end In computing the net income of a taxpayer no deduction shall in any case be allowed for expenses, interest and taxes connected with or allocable against the production or receipt of all income not included in the measure of the tax imposed by this chapter, except that for corporations engaged in the business of mining or producing iron ore, the mining of which is subject to the occupation tax imposed by section 298.01, subdivision 4, this shall not prevent the deduction of expenses and other items to the extent that the expenses and other items are allowable under this chapter and are not deductible, capitalizable, retainable in basis, or taken into account by allowance or otherwise in computing the occupation tax and do not exceed the amounts taken for federal income tax purposes for that year. Occupation taxes imposed under chapter 298, royalty taxes imposed under chapter 299, or depletion expenses may not be deducted under this subdivision.
(a) If a trade or business conducted wholly within this state or partly within and partly without this state is part of a unitary business, the entire income of the unitary business is subject to apportionment pursuant to section 290.191. Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary business is considered to be derived from any particular source and none may be allocated to a particular place except as provided by the applicable apportionment formula. The provisions of this subdivision do not apply to business income subject to subdivision 5, income of an insurance company, or income of an investment company determined under section 290.36.
(b) The term "unitary business" means business activities or operations which result in a flow of value between them. The term may be applied within a single legal entity or between multiple entities and without regard to whether each entity is a sole proprietorship, a corporation, a partnership or a trust.
(c) Unity is presumed whenever there is unity of ownership, operation, and use, evidenced by centralized management or executive force, centralized purchasing, advertising, accounting, or other controlled interaction, but the absence of these centralized activities will not necessarily evidence a nonunitary business. Unity is also presumed when business activities or operations are of mutual benefit, dependent upon or contributory to one another, either individually or as a group.
(d) Where a business operation conducted in Minnesota is owned by a business entity that carries on business activity outside the state different in kind from that conducted within this state, and the other business is conducted entirely outside the state, it is presumed that the two business operations are unitary in nature, interrelated, connected, and interdependent unless it can be shown to the contrary.
(e) Unity of ownership deleted text begin is not deemed todeleted text end new text begin does notnew text end exist when deleted text begin a corporation isdeleted text end new text begin two or more corporations arenew text end involved unless deleted text begin that corporation is a member of a group of two or more business entities anddeleted text end more than 50 percent of the voting stock of each deleted text begin member of the groupdeleted text end new text begin corporationnew text end is directly or indirectly owned by a common owner or by common owners, either corporate or noncorporate, or by one or more of the member corporations of the group. For this purpose, the term "voting stock" shall include membership interests of mutual insurance holding companies formed under section 66A.40.
(f) The net income and apportionment factors under section 290.191 or 290.20 of foreign corporations and other foreign entities which are part of a unitary business shall not be included in the net income or the apportionment factors of the unitary businessnew text begin ; except that the income and apportionment factors of a foreign entity, other than an entity treated as a C corporation for federal income tax purposes, that are included in the federal taxable income, as defined in section 63 of the Internal Revenue Code as amended through the date named in section 290.01, subdivision 19, of a domestic corporation, domestic entity, or individual must be included in determining net income and the factors to be used in the apportionment of net income pursuant to section 290.191 or 290.20new text end . A foreign corporation or other foreign entity which is new text begin not included on a combined report and which is new text end required to file a return under this chapter shall file on a separate return basis. deleted text begin The net income and apportionment factors under section 290.191 or 290.20 of foreign operating corporations shall not be included in the net income or the apportionment factors of the unitary business except as provided in paragraph (g).deleted text end
deleted text begin (g) The adjusted net income of a foreign operating corporation shall be deemed to be paid as a dividend on the last day of its taxable year to each shareholder thereof, in proportion to each shareholder's ownership, with which such corporation is engaged in a unitary business. Such deemed dividend shall be treated as a dividend under section 290.21, subdivision 4. deleted text end
deleted text begin Dividends actually paid by a foreign operating corporation to a corporate shareholder which is a member of the same unitary business as the foreign operating corporation shall be eliminated from the net income of the unitary business in preparing a combined report for the unitary business. The adjusted net income of a foreign operating corporation shall be its net income adjusted as follows: deleted text end
deleted text begin (1) any taxes paid or accrued to a foreign country, the commonwealth of Puerto Rico, or a United States possession or political subdivision of any of the foregoing shall be a deduction; and deleted text end
deleted text begin (2) the subtraction from federal taxable income for payments received from foreign corporations or foreign operating corporations under section 290.01, subdivision 19d, clause (10), shall not be allowed. deleted text end
deleted text begin If a foreign operating corporation incurs a net loss, neither income nor deduction from that corporation shall be included in determining the net income of the unitary business. deleted text end
deleted text begin (h)deleted text end new text begin (g)new text end For purposes of determining the net income of a unitary business and the factors to be used in the apportionment of net income pursuant to section 290.191 or 290.20, there must be included only the income and apportionment factors of domestic corporations or other domestic entities deleted text begin other than foreign operating corporationsdeleted text end that are determined to be part of the unitary business pursuant to this subdivision, notwithstanding that foreign corporations or other foreign entities might be included in the unitary businessnew text begin ; except that the income and apportionment factors of a foreign entity, other than an entity treated as a C corporation for federal income tax purposes, that is included in the federal taxable income, as defined in section 63 of the Internal Revenue Code as amended through the date named in section 290.01, subdivision 19, of a domestic corporation, domestic entity, or individual must be included in determining net income and the factors to be used in the apportionment of net income pursuant to section 290.191 or 290.20new text end .
deleted text begin (i) Deductions for expenses, interest, or taxes otherwise allowable under this chapter that are connected with or allocable against dividends, deemed dividends described in paragraph (g), or royalties, fees, or other like income described in section 290.01, subdivision 19d, clause (10), shall not be disallowed. deleted text end
deleted text begin (j)deleted text end new text begin (h)new text end Each corporation or other entity, except a sole proprietorship, that is part of a unitary business must file combined reports as the commissioner determines. On the reports, all intercompany transactions between entities included pursuant to paragraph deleted text begin (h)deleted text end new text begin (g)new text end must be eliminated and the entire net income of the unitary business determined in accordance with this subdivision is apportioned among the entities by using each entity's Minnesota factors for apportionment purposes in the numerators of the apportionment formula and the total factors for apportionment purposes of all entities included pursuant to paragraph deleted text begin (h)deleted text end new text begin (g)new text end in the denominators of the apportionment formula.new text begin Except as otherwise provided by paragraph (f), all sales of the unitary business made within this state pursuant to section 290.191 or 290.20 must be included on the combined report of a corporation or other entity that is a member of the unitary business and is subject to the jurisdiction of this state to impose tax under this chapter.new text end
deleted text begin (k)deleted text end new text begin (i)new text end If a corporation has been divested from a unitary business and is included in a combined report for a fractional part of the common accounting period of the combined report:
(1) its income includable in the combined report is its income incurred for that part of the year determined by proration or separate accounting; and
(2) its sales, property, and payroll included in the apportionment formula must be prorated or accounted for separately.
new text begin This section is effective for taxable years beginning after December 31, 2012. new text end
For purposes of this section, the following rules apply in determining the sales factor.
(a) The sales factor includes all sales, gross earnings, or receipts received in the ordinary course of the business, except that the following types of income are not included in the sales factor:
(1) interest;
(2) dividends;
(3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;
(4) sales of property used in the trade or business, except sales of leased property of a type which is regularly sold as well as leased;new text begin andnew text end
(5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue Code or sales of stockdeleted text begin ; anddeleted text end new text begin .new text end
deleted text begin (6) royalties, fees, or other like income of a type which qualify for a subtraction from federal taxable income under section 290.01, subdivision 19d, clause (10). deleted text end
(b) Sales of tangible personal property are made within this state if the property is received by a purchaser at a point within this state, and the taxpayer is taxable in this state, regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination of the property.
(c) Tangible personal property delivered to a common or contract carrier or foreign vessel for delivery to a purchaser in another state or nation is a sale in that state or nation, regardless of f.o.b. point or other conditions of the sale.
(d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine, fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is licensed by a state or political subdivision to resell this property only within the state of ultimate destination, the sale is made in that state.
(e) Sales made by or through a corporation that is qualified as a domestic international sales corporation under section 992 of the Internal Revenue Code are not considered to have been made within this state.
(f) Sales, rents, royalties, and other income in connection with real property is attributed to the state in which the property is located.
(g) Receipts from the lease or rental of tangible personal property, including finance leases and true leases, must be attributed to this state if the property is located in this state and to other states if the property is not located in this state. Receipts from the lease or rental of moving property including, but not limited to, motor vehicles, rolling stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts factor to the extent that the property is used in this state. The extent of the use of moving property is determined as follows:
(1) A motor vehicle is used wholly in the state in which it is registered.
(2) The extent that rolling stock is used in this state is determined by multiplying the receipts from the lease or rental of the rolling stock by a fraction, the numerator of which is the miles traveled within this state by the leased or rented rolling stock and the denominator of which is the total miles traveled by the leased or rented rolling stock.
(3) The extent that an aircraft is used in this state is determined by multiplying the receipts from the lease or rental of the aircraft by a fraction, the numerator of which is the number of landings of the aircraft in this state and the denominator of which is the total number of landings of the aircraft.
(4) The extent that a vessel, mobile equipment, or other mobile property is used in the state is determined by multiplying the receipts from the lease or rental of the property by a fraction, the numerator of which is the number of days during the taxable year the property was in this state and the denominator of which is the total days in the taxable year.
(h) Royalties and other income deleted text begin not described in paragraph (a), clause (6),deleted text end received for the use of or for the privilege of using intangible property, including patents, know-how, formulas, designs, processes, patterns, copyrights, trade names, service names, franchises, licenses, contracts, customer lists, or similar items, must be attributed to the state in which the property is used by the purchaser. If the property is used in more than one state, the royalties or other income must be apportioned to this state pro rata according to the portion of use in this state. If the portion of use in this state cannot be determined, the royalties or other income must be excluded from both the numerator and the denominator. Intangible property is used in this state if the purchaser uses the intangible property or the rights therein in the regular course of its business operations in this state, regardless of the location of the purchaser's customers.
(i) Sales of intangible property are made within the state in which the property is used by the purchaser. If the property is used in more than one state, the sales must be apportioned to this state pro rata according to the portion of use in this state. If the portion of use in this state cannot be determined, the sale must be excluded from both the numerator and the denominator of the sales factor. Intangible property is used in this state if the purchaser used the intangible property in the regular course of its business operations in this state.
(j) Receipts from the performance of services must be attributed to the state where the services are received. For the purposes of this section, receipts from the performance of services provided to a corporation, partnership, or trust may only be attributed to a state where it has a fixed place of doing business. If the state where the services are received is not readily determinable or is a state where the corporation, partnership, or trust receiving the service does not have a fixed place of doing business, the services shall be deemed to be received at the location of the office of the customer from which the services were ordered in the regular course of the customer's trade or business. If the ordering office cannot be determined, the services shall be deemed to be received at the office of the customer to which the services are billed.
(k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts from management, distribution, or administrative services performed by a corporation or trust for a fund of a corporation or trust regulated under United States Code, title 15, sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of the fund resides. Under this paragraph, receipts for services attributed to shareholders are determined on the basis of the ratio of: (1) the average of the outstanding shares in the fund owned by shareholders residing within Minnesota at the beginning and end of each year; and (2) the average of the total number of outstanding shares in the fund at the beginning and end of each year. Residence of the shareholder, in the case of an individual, is determined by the mailing address furnished by the shareholder to the fund. Residence of the shareholder, when the shares are held by an insurance company as a depositor for the insurance company policyholders, is the mailing address of the policyholders. In the case of an insurance company holding the shares as a depositor for the insurance company policyholders, if the mailing address of the policyholders cannot be determined by the taxpayer, the receipts must be excluded from both the numerator and denominator. Residence of other shareholders is the mailing address of the shareholder.
new text begin This section is effective for taxable years beginning after December 31, 2012. new text end
(a)(1) Eighty percent of dividends received by a corporation during the taxable year from another corporation, in which the recipient owns 20 percent or more of the stock, by vote and value, not including stock described in section 1504(a)(4) of the Internal Revenue Code when the corporate stock with respect to which dividends are paid does not constitute the stock in trade of the taxpayer or would not be included in the inventory of the taxpayer, or does not constitute property held by the taxpayer primarily for sale to customers in the ordinary course of the taxpayer's trade or business, or when the trade or business of the taxpayer does not consist principally of the holding of the stocks and the collection of the income and gains therefrom; and
(2)(i) the remaining 20 percent of dividends if the dividends received are the stock in an affiliated company transferred in an overall plan of reorganization and the dividend is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as amended through December 31, 1989;
(ii) the remaining 20 percent of dividends if the dividends are received from a corporation which is subject to tax under section 290.36 and which is a member of an affiliated group of corporations as defined by the Internal Revenue Code and the dividend is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as amended through December 31, 1989, or is deducted under an election under section 243(b) of the Internal Revenue Code; or
(iii) the remaining 20 percent of the dividends if the dividends are received from a property and casualty insurer as defined under section 60A.60, subdivision 8, which is a member of an affiliated group of corporations as defined by the Internal Revenue Code and either: (A) the dividend is eliminated in consolidation under Treasury Regulation 1.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted under an election under section 243(b) of the Internal Revenue Code.
(b) Seventy percent of dividends received by a corporation during the taxable year from another corporation in which the recipient owns less than 20 percent of the stock, by vote or value, not including stock described in section 1504(a)(4) of the Internal Revenue Code when the corporate stock with respect to which dividends are paid does not constitute the stock in trade of the taxpayer, or does not constitute property held by the taxpayer primarily for sale to customers in the ordinary course of the taxpayer's trade or business, or when the trade or business of the taxpayer does not consist principally of the holding of the stocks and the collection of income and gain therefrom.
(c) The dividend deduction provided in this subdivision shall be allowed only with respect to dividends that are included in a corporation's Minnesota taxable net income for the taxable year.
The dividend deduction provided in this subdivision does not apply to a dividend from a corporation which, for the taxable year of the corporation in which the distribution is made or for the next preceding taxable year of the corporation, is a corporation exempt from tax under section 501 of the Internal Revenue Code.
new text begin The dividend deduction provided in this subdivision does not apply to a dividend received from a real estate investment trust as defined in section 856 of the Internal Revenue Code. new text end
The dividend deduction provided in this subdivision applies to the amount of regulated investment company dividends only to the extent determined under section 854(b) of the Internal Revenue Code.
The dividend deduction provided in this subdivision shall not be allowed with respect to any dividend for which a deduction is not allowed under the provisions of section 246(c) of the Internal Revenue Code.
(d) If dividends received by a corporation that does not have nexus with Minnesota under the provisions of Public Law 86-272 are included as income on the return of an affiliated corporation permitted or required to file a combined report under section 290.17, subdivision 4, or 290.34, subdivision 2, then for purposes of this subdivision the determination as to whether the trade or business of the corporation consists principally of the holding of stocks and the collection of income and gains therefrom shall be made with reference to the trade or business of the affiliated corporation having a nexus with Minnesota.
(e) The deduction provided by this subdivision does not apply if the dividends are paid by a FSC as defined in section 922 of the Internal Revenue Code.
(f) If one or more of the members of the unitary group whose income is included on the combined report received a dividend, the deduction under this subdivision for each member of the unitary business required to file a return under this chapter is the product of: (1) 100 percent of the dividends received by members of the group; (2) the percentage allowed pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's business income apportionable to this state for the taxable year under section 290.191 or 290.20.
new text begin This section is effective for taxable years beginning after December 31, 2012. new text end
(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 deleted text begin (9)deleted text end new text begin (8)new text end . 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 (9), and 19d, clauses (7) and deleted text begin (11)deleted text end new text begin (10)new text end , are not used to determine taxable income.
This section is effective for taxable years beginning after December 31, 2009, for certified historic structures for which qualified deleted text begin costs of rehabilitation are first paid under construction contracts entered into after May 1, 2010deleted text end new text begin rehabilitation expenditures are first paid by the developer or taxpayer after May 1, 2010, for rehabilitation that occurs after May 1, 2010, provided that the application under subdivision 3 is submitted before the project is placed in servicenew text end .
new text begin This section is effective the day following final enactment and applies retroactively for taxable years beginning after December 31, 2009, and for certified historic structures placed in service after May 1, 2010, but the office may not issue certificates allowed under the change to this section until July 1, 2013. new text end
new text begin No addition to tax, penalties, or interest may be made under Minnesota Statutes, section 289A.25, for any period before September 15, 2013, with respect to an underpayment of estimated tax, to the extent that the underpayment was created or increased by the increase in income tax rates under this article. new text end
new text begin This section is effective for taxable years beginning after December 31, 2012. new text end
new text begin Minnesota Statutes 2012, sections 290.01, subdivision 6b; 290.06, subdivision 22a; and 290.0921, subdivision 7, new text end new text begin are repealed. new text end
new text begin This section is effective for taxable years beginning after December 31, 2012. new text end
For purposes of this chapter only, unless expressly stated otherwise, "Minnesota tax laws" means:
(1) the taxes, refunds, and fees administered by or paid to the commissioner under chapters 115B, 289A (except taxes imposed under sections 298.01, 298.015, and 298.24), 290, 290A, 291, new text begin 292, new text end 295, 297A, 297B, and 297H, or any similar Indian tribal tax administered by the commissioner pursuant to any tax agreement between the state and the Indian tribal government, and includes any laws for the assessment, collection, and enforcement of those taxes, refunds, and fees; and
(2) section 273.1315.
new text begin This section is effective for gifts made after December 31, 2012. new text end
Returns and return information must, on request, be made open to inspection by or disclosure to the data subject. The request must be made in writing or in accordance with written procedures of the chief disclosure officer of the department that have been approved by the commissioner to establish the identification of the person making the request as the data subject. For purposes of this chapter, the following are the data subject:
(1) in the case of an individual return, that individual;
(2) in the case of an income tax return filed jointly, either of the individuals with respect to whom the return is filed;
(3) in the case of a return filed by a business entity, an officer of a corporation, a shareholder owning more than one percent of the stock, or any shareholder of an S corporation; a general partner in a partnership; the owner of a sole proprietorship; a member or manager of a limited liability company; a participant in a joint venture; the individual who signed the return on behalf of the business entity; or an employee who is responsible for handling the tax matters of the business entity, such as the tax manager, bookkeeper, or managing agent;
(4) in the case of an estate return:
(i) the personal representative or trustee of the estate; and
(ii) any beneficiary of the estate as shown on the federal estate tax return;
(5) in the case of a trust return:
(i) the trustee or trustees, jointly or separately; and
(ii) any beneficiary of the trust as shown in the trust instrument;
(6) if liability has been assessed to a transferee under section 270C.58, subdivision 1, the transferee is the data subject with regard to the returns and return information relating to the assessed liability;
(7) in the case of an Indian tribal government or an Indian tribal government-owned entity,
(i) the chair of the tribal government, or
(ii) any person authorized by the tribal government; deleted text begin anddeleted text end
(8) in the case of a successor as defined in section 270C.57, subdivision 1, paragraph (b), the successor is the data subject and information may be disclosed as provided by section 270C.57, subdivision 4deleted text begin .deleted text end new text begin ; andnew text end
new text begin (9) in the case of a gift return, the donor. new text end
new text begin This section is effective the day following final enactment. new text end
In the case of a decedent who has an interest in property with a situs in Minnesota, the personal representative must submit a Minnesota estate tax return to the commissioner, on a form prescribed by the commissioner, if:
(1) a federal estate tax return is required to be filed; or
(2) the new text begin sum of the new text end federal gross estatenew text begin and federal adjusted taxable gifts made within three years of the date of the decedent's death new text end exceeds $1,000,000.
The return must contain a computation of the Minnesota estate tax due. The return must be signed by the personal representative.
new text begin This section is effective for estates of decedents dying after December 31, 2012. new text end
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.
(3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, as amended through deleted text begin April 14, 2011deleted text end new text begin January 3, 2013new text end , but without regard to the provisions of deleted text begin sections 501 and 901 of Public Law 107-16, as amended by Public Law 111-312, and section 301(c) of Public Law 111-312deleted text end new text begin section 2011, paragraph (f), of the Internal Revenue Codenew text end .
(4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as defined by section 2011(b)(3) of the Internal Revenue Code, plus
(i) the amount of deduction for state death taxes allowed under section 2058 of the Internal Revenue Code;
new text begin (ii) the amount of taxable gifts, as defined in section 292.16, and made by the decedent within three years of the decedent's date of death; new text end less
deleted text begin (ii)deleted text end new text begin (iii)new text end (A) 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 (B) $4,000,000, whichever is less.
(5) "Minnesota gross estate" means the federal gross estate of a decedent after (a) excluding therefrom any property included therein which has its situs outside Minnesota, and (b) including therein any property omitted from the federal gross estate which is includable therein, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
(6) "Nonresident decedent" means an individual whose domicile at the time of death was not in Minnesota.
(7) "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.
(8) "Resident decedent" means an individual whose domicile at the time of death was in Minnesota.
(9) "Situs of property" means, with respect tonew text begin :new text end
new text begin (i)new text end real property, the state or country in which it is located; deleted text begin with respect todeleted text end
new text begin (ii) new text end tangible personal property, the state or country in which it was normally kept or located at the time of the decedent's deathnew text begin 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 executednew text end ; and deleted text begin with respect todeleted text end
new text begin (iii)new text end intangible personal property, the state or country in which the decedent was domiciled at deathnew text begin 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 executednew text end .
new text begin 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 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. new text end
new text begin (10) "Pass-through entity" includes the following: new text end
new text begin (i) an entity electing S corporation status under section 1362 of the Internal Revenue Code; new text end
new text begin (ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code; new text end
new text begin (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 new text end
new text begin (iv) a trust to the extent the property is includible in the decedent's federal gross estate. new text end
new text begin This section is effective for decedents dying after December 31, 2012. new text end
(a) The tax imposed shall be an amount equal to the proportion of the maximum credit for state death taxes computed under section 2011 of the Internal Revenue Code, but using Minnesota adjusted taxable estate instead of federal adjusted taxable estate, as the Minnesota gross estate bears to the value of the federal gross estate.new text begin The tax is reduced by:new text end
new text begin (1) the gift tax paid by the decedent under section 292.17 on gifts included in the Minnesota adjusted taxable estate and not subtracted as qualified farm or small business property; and new text end
new text begin (2) any credit allowed under subdivision 1c. new text end
(b) The tax determined under this subdivision must not be greater than the sum of the following amounts multiplied by a fraction, the numerator of which is the Minnesota gross estate and the denominator of which is the federal gross estate:
(1) the rates and brackets under section 2001(c) of the Internal Revenue Code multiplied by the sum of:
(i) the taxable estate, as defined under section 2051 of the Internal Revenue Code; plus
(ii) adjusted taxable gifts, as defined in section 2001(b) of the Internal Revenue Code; less
(iii) the lesser of (A) the sum of the value of qualified small business property under subdivision 9, and the value of qualified farm property under subdivision 10, or (B) $4,000,000; less
(2) the amount of tax allowed under section 2001(b)(2) of the Internal Revenue Code; and less
(3) the federal credit allowed under section 2010 of the Internal Revenue Code.
(c) For purposes of this subdivision, "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended through December 31, 2000.
new text begin This section is effective for decedents dying after December 31, 2012. new text end
new text begin (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 this section equal to the lesser of: new text end
new text begin (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 new text end
new text begin (2) the amount of tax paid under this section attributable to the Minnesota situs property held in the pass-through entity. new text end
new text begin (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 end
new text begin This section is effective for decedents dying after December 31, 2012. new text end
(a) For purposes of this section, the following terms have the meanings given in this subdivision.
(b) "Family member" means a family member as defined in section 2032A(e)(2) of the Internal Revenue Codenew text begin , or a trust whose present beneficiaries are all family members as defined in section 2032A(e)(2) of the Internal Revenue Codenew text end .
(c) "Qualified heir" means a family member who acquired qualified property deleted text begin fromdeleted text end new text begin upon the death ofnew text end the decedent and satisfies the requirement under subdivision 9, clause deleted text begin (6)deleted text end new text begin (7)new text end , or subdivision 10, clause deleted text begin (4)deleted text end new text begin (5)new text end , for the property.
(d) "Qualified property" means qualified small business property under subdivision 9 and qualified farm property under subdivision 10.
new text begin This section is effective retroactively for estates of decedents dying after June 30, 2011. new text end
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. deleted text begin The decedent or the decedent's spouse must have materially participated in the trade or business within the meaning of section 469 of the Internal Revenue Code during the taxable year that ended before the date of the decedent's death.deleted text end 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.new text begin 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.new text end
(3) new text begin 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.new text end
new text begin (4) new text end 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.
deleted text begin (4)deleted text end new text begin (5)new text end The property does not consist of cash deleted text begin ordeleted text end new text begin ,new text end cash equivalentsnew text begin , publicly traded securities, or assets not used in the operation of the trade or businessnew text end . For property consisting of shares of stock or other ownership interests in an entity, the deleted text begin amountdeleted text end new text begin valuenew text end of cash deleted text begin ordeleted text end new text begin ,new text end cash equivalentsnew text begin , publicly traded securities, or assets not used in the operation of the trade or businessnew text end held by the corporation or other entity must be deducted from the value of the property qualifying under this subdivision in proportion to the decedent's share of ownership of the entity on the date of death.
deleted text begin (5)deleted text end new text begin (6)new text end The decedent continuously owned the propertynew text begin , including property the decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code,new text end for the three-year period ending on the date of death of the decedent.new text begin 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.new text end
deleted text begin (6) A family member continuously uses the property in the operation of the trade or business for three years following the date of death of the decedent. deleted text end
(7) new text begin 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.new text end
new text begin (8) 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 This section is effective retroactively for estates of decedents dying after June 30, 2011. new text end
Property satisfying all of the following requirements is qualified farm property:
(1) The value of the property was included in the federal adjusted taxable estate.
(2) The property consists of deleted text begin a farm meeting the requirements ofdeleted text end new text begin agricultural land and is owned by a person or entity that is either not subject to or is in compliance with new text end section 500.24deleted text begin , and was classified for property tax purposes as the homestead of the decedent or the decedent's spouse or both under section 273.124, and as class 2a property under section 273.13, subdivision 23deleted text end .
(3) new text begin For property taxes payable in the taxable year of the decedent's death, the property is classified as class 2a property under section 273.13, subdivision 23, and is classified as agricultural homestead, agricultural relative homestead, or special agricultural homestead under section 273.124.new text end
new text begin (4) new text end The decedent continuously owned the propertynew text begin , including property the decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code,new text end for the three-year period ending on the date of death of the decedentnew text begin either by ownership of the agricultural land or pursuant to holding an interest in an entity that is not subject to or is in compliance with section 500.24new text end .
deleted text begin (4) A family member continuously uses the property in the operation of the trade or businessdeleted text end new text begin (5) The property is classified for property tax purposes as class 2a property under section 273.13, subdivision 23,new text end for three years following the date of death of the decedent.
deleted text begin (5)deleted text end new text begin (6) new text end The estate and the qualified heir elect to treat the property as qualified farm property and agree, in a form prescribed by the commissioner, to pay the recapture tax under subdivision 11, if applicable.
new text begin This section is effective retroactively for estates of decedents dying after June 30, 2011. new text end
(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 deleted text begin use the qualified property which was acquired or passed from the decedentdeleted text end new text begin satisfy the requirement under subdivision 9, clause (7); or 10, clause (5)new text end , an additional estate tax is imposed on the property.new text begin 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.new text end
(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 This section is effective retroactively for estates of decedents dying after June 30, 2011. new text end
new text begin (a) For purposes of this chapter, the following definitions apply. new text end
new text begin (b) The definitions of terms defined in section 291.005 apply. new text end
new text begin (c) "Resident" has the meaning given in section 290.01, subdivision 7, paragraph (a). new text end
new text begin (d) "Taxable gifts" means: new text end
new text begin (1) the transfers by gift which are included in taxable gifts for federal gift tax purposes under the following sections of the Internal Revenue Code: new text end
new text begin (i) section 2503; new text end
new text begin (ii) sections 2511 to 2514; and new text end
new text begin (iii) sections 2516 to 2519; less new text end
new text begin (2) the deductions allowed in sections 2522 to 2524 of the Internal Revenue Code. new text end
new text begin This section is effective for taxable gifts made after June 30, 2013. new text end
new text begin (a) A tax is imposed on the transfer of property by gift by any individual resident or nonresident in an amount equal to ten percent of the amount of the taxable gift. new text end
new text begin (b) The donor is liable for payment of the tax. If the gift tax is not paid when due, the donee of any gift is personally liable for the tax to the extent of the value of the gift. new text end
new text begin A credit is allowed against the tax imposed under this section equal to $100,000. This credit applies to the cumulative amount of taxable gifts made by the donor during the donor's lifetime. new text end
new text begin Taxable gifts exclude the transfer of: new text end
new text begin (1) real property located outside of this state; new text end
new text begin (2) tangible personal property that was normally kept at a location outside of the state on the date the gift was executed; and new text end
new text begin (3) intangible personal property made by an individual who is not a resident at the time the gift was executed. new text end
new text begin This section is effective for taxable gifts made after June 30, 2013. new text end
new text begin (a) Any individual who makes a taxable gift during the taxable year shall file a gift tax return in the form and manner prescribed by the commissioner. new text end
new text begin (b) If the donor dies before filing the return, the executor of the donor's will or the administrator of the donor's estate shall file the return. If the donor becomes legally incompetent before filing the return, the guardian or conservator shall file the return. new text end
new text begin (c) The return must include: new text end
new text begin (1) each gift made during the calendar year which is to be included in computing the taxable gifts; new text end
new text begin (2) the deductions claimed and allowable under section 292.16, paragraph (d), clause (2); new text end
new text begin (3) a description of the gift, and the donee's name, address, and Social Security number; new text end
new text begin (4) the fair market value of gifts not made in money; and new text end
new text begin (5) any other information the commissioner requires to administer the gift tax. new text end
new text begin This section is effective for taxable gifts made after June 30, 2013. new text end
new text begin Gift tax returns must be filed by the April 15 following the close of the calendar year, except if a gift is made during the calendar year in which the donor dies, the return for the donor must be filed by the last date, including extensions, for filing the gift tax return for federal gift tax purposes for the donor. new text end
new text begin This section is effective for taxable gifts made after June 30, 2013. new text end
new text begin The commissioner may require the donor or the donee to show the property subject to the tax under section 292.17 to the commissioner upon demand and may employ a suitable person to appraise the property. The donor shall submit a declaration, in a form prescribed by the commissioner and including any certification required by the commissioner, that the property shown by the donor on the gift tax return includes all of the property transferred by gift for the calendar year and not deductible under section 292.16, paragraph (d), clause (2). new text end
new text begin This section is effective for taxable gifts made after June 30, 2013. new text end
new text begin The tax imposed under section 292.17 is due and payable to the commissioner by the April 15 following the close of the calendar year during which the gift was made. The return required under section 292.19 must be included with the payment. If a taxable gift is made during the calendar year in which the donor dies, the due date is the last date, including extensions, for filing the gift tax return for federal gift tax purposes for the donor. If any person fails to pay the tax due within the time specified under this section, a penalty applies equal to ten percent of the amount due and unpaid or $100, whichever is greater. The unpaid tax and penalty bear interest at the rate under section 270C.40 from the due date of the return. new text end
new text begin The commissioner may, for good cause, extend the time for filing a gift tax return, if a written request is filed with a tentative return accompanied by a payment of the tax, which is estimated in the tentative return, on or before the last day for filing the return. Any person to whom an extension is granted must pay, in addition to the tax, interest at the rate under section 270C.40 from the date on which the tax would have been due without the extension. new text end
new text begin If the amount of a taxpayer's taxable gifts for federal gift tax purposes, as reported on the taxpayer's federal gift tax return for any calendar year, is changed or corrected by the Internal Revenue Service or other officer of the United States or other competent authority, the taxpayer shall report the change or correction in federal taxable gifts within 180 days after the final determination of the change or correction, and concede the accuracy of the determination or provide a letter detailing how the federal determination is incorrect or does not change the Minnesota gift tax. Any taxpayer filing an amended federal gift tax return shall also file within 180 days an amended return under this chapter and shall include any information the commissioner requires. The time for filing the report or amended return may be extended by the commissioner upon due cause shown. Notwithstanding any limitation of time in this chapter, if, upon examination, the commissioner finds that the taxpayer is liable for the payment of an additional tax, the commissioner shall, within a reasonable time from the receipt of the report or amended return, notify the taxpayer of the amount of additional tax, together with interest computed at the rate under section 270C.40 from the date when the original tax was due and payable. Within 30 days of the mailing of the notice, the taxpayer shall pay the commissioner the amount of the additional tax and interest. If, upon examination of the report or amended return and related information, the commissioner finds that the taxpayer has overpaid the tax due the state, the commissioner shall refund the overpayment to the taxpayer. new text end
new text begin In administering the tax under this chapter, the commissioner shall apply the provisions of sections 2701 to 2704 of the Internal Revenue Code. The words "secretary or his delegate," as used in those sections of the Internal Revenue Code, mean the commissioner. new text end
new text begin This section is effective for taxable gifts made after June 30, 2013. new text end
new text begin (a) For purposes of this section, the following terms have the meanings given unless the context clearly indicates otherwise. new text end
new text begin (b) "Agricultural processing facility" means one or more facilities or operations that transform, package, sort, or grade livestock or livestock products, agricultural commodities, or plants or plant products into goods that are used for intermediate or final consumption including goods for nonfood use, and surrounding property. new text end
new text begin (c) "Business" means an individual, corporation, partnership, limited liability company, association, or any other entity engaged in operating a trade or business located in greater Minnesota. new text end
new text begin (d) "City" means a statutory or home rule charter city. new text end
new text begin (e) "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 (f) "Qualified business" means a business that satisfies the requirements of subdivision 2, has been certified under subdivision 3, and has not been terminated under subdivision 5. new text end
new text begin (a) A business is a qualified business if it satisfies the requirement of this paragraph and is not disqualified under the provisions of paragraph (b). To qualify, the business must: new text end
new text begin (1) have operated its trade or business in a city or cities in greater Minnesota for at least one year before applying under subdivision 3; new text end
new text begin (2) pay or agree to pay in the future each employee compensation, including benefits not mandated by law, that on an annualized basis equal at least 120 percent of the federal poverty level for a family of four; new text end
new text begin (3) plan and agree to expand its employment in one or more cities in greater Minnesota by the minimum number of employees required under subdivision 3, paragraph (c); and new text end
new text begin (4) received certification from the commissioner under subdivision 3 that it is a qualified business. new text end
new text begin (b) A business is not a qualified business if it is either: new text end
new text begin (1) primarily engaged in making retail sales to purchasers who are physically present at the business's location or locations in greater Minnesota; or new text end
new text begin (2) a public utility, as defined in section 336B.01. new text end
new text begin (c) The requirements in paragraph (a) that the business' operations and expansion be located in a city do not apply to an agricultural processing facility. new text end
new text begin (a) A business may apply to the commissioner for certification as a qualified business under this section. The commissioner shall specify the form of the application, the manner and times for applying, and the information required to be included in the application. The commissioner may impose an application fee in an amount sufficient to defray the commissioner's cost of processing certifications. A business must file a copy of its application with the chief clerical officer of the city at the same time it applies to the commissioner. For an agricultural processing facility located outside the boundaries of a city, the business must file a copy of the application with the county auditor. new text end
new text begin (b) The commissioner shall certify each business as a qualified business that: new text end
new text begin (1) satisfies the requirements of subdivision 2; new text end
new text begin (2) the commissioner determines would not expand its operations in greater Minnesota without the tax incentives available under subdivision 4; and new text end
new text begin (3) enters a business subsidy agreement with the commissioner that pledges to satisfy the minimum expansion requirements of paragraph (c) within three years or less following execution of the agreement. new text end
new text begin The commissioner must act on an application within 60 days after its filing. Failure by the commissioner to take action within the 60-day period is deemed approval of the application. new text end
new text begin (c) The following minimum expansion requirements apply, based on the number of employees of the business at locations in greater Minnesota: new text end
new text begin (1) a business that employees 50 or fewer full-time equivalent employees in greater Minnesota when the agreement is executed must increase its employment by five or more full-time equivalent employees; new text end
new text begin (2) a business that employees more than 50 but fewer than 200 full-time equivalent employees in greater Minnesota when the agreement is executed must increase the number of its full-time equivalent employees in greater Minnesota by at least ten percent; or new text end
new text begin (3) a business that employees 200 or more full-time equivalent employees in greater Minnesota when the agreement is executed must increase its employment by at least 21 full-time equivalent employees. new text end
new text begin (d) The city, or a county for an agricultural processing facility located outside the boundaries of a city, in which the business proposes to expand its operations may file comments supporting or opposing the application with the commissioner. The comments must be filed within 30 days after receipt by the city of the application and may include a notice of any contribution the city or county intends to make to encourage or support the business expansion, such as the use of tax increment financing, property tax abatement, additional city or county services, or other financial assistance. new text end
new text begin (e) Certification of a qualified business is effective for the 12-year period beginning on the first day of the calendar month immediately following execution of the business subsidy agreement. new text end
new text begin A qualified business is entitled to a sales tax exemption, as provided in section 297A.68, subdivision 49, for purchases made during the period the business was certified as a qualified business under this section. new text end
new text begin (a) The commissioner shall put in place a system for monitoring and ensuring that each certified business meets within three years or less the minimum expansion requirement in its business subsidy agreement and continues to satisfy those requirements for the rest of the duration of the certification under subdivision 3. This system must include regular reporting by the business to the commissioner of its baseline and current employment levels and any other information the commissioner determines may be useful to ensure compliance and for legislative evaluation of the effectiveness of the tax incentives. new text end
new text begin (b) A business ceases to be a qualified business and to qualify for the sales tax exemption under section 297A.68, subdivision 49, under this subdivision upon the earlier of the following dates: new text end
new text begin (1) the end of the duration of its designation under subdivision 3, paragraph (e), effective as provided under this subdivision or other provision of law for the tax incentive; or new text end
new text begin (2) the date the commissioner finds that the business has breached its business subsidy agreement and failed to satisfy the minimum expansion required by subdivision 3 and its agreement. new text end
new text begin (c) A business may contest the commissioner's finding that it breached its business subsidy agreement under paragraph (b), clause (2), under the contested case procedures in the Administrative Procedure Act, chapter 14. new text end
new text begin (d) The commissioner, after consulting with the commissioner of revenue, may waive a breach of the business subsidy agreement and permit continued receipt of tax incentives, if the commissioner determines that termination of the tax incentives is not in the best interest of the state or the local government units and the business' breach of the agreement is a result of circumstances beyond its control including, but not limited to: new text end
new text begin (1) a natural disaster; new text end
new text begin (2) unforeseen industry trends; new text end
new text begin (3) a decline in economic activity in the overall or greater Minnesota economy; or new text end
new text begin (4) loss of a major supplier or customer of the business. new text end
new text begin This section is effective the day following final enactment. new text end
(a) "Sale" and "purchase" include, but are not limited to, each of the transactions listed in this subdivision.new text begin 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).new text end
(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, Turkish 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 blocknew text begin . For purposes of this clause, "road construction" means construction of:new text end
new text begin (i) public roads; new text end
new text begin (ii) cartways; and new text end
new text begin (iii) private roads in townships located outside of the seven-county metropolitan area up to the point of the emergency response location signnew text end ; 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 new text begin or any organization at the direction of a county new text end 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.
deleted text begin In applying the provisions of this chapter, the terms "tangible personal property" deleted text end deleted text begin and "retail sale" include taxable services listed in clause (6), items (i) to (vi) and (viii), deleted text end deleted text begin and the provision of these taxable services, unless specifically provided otherwise. deleted text end deleted text begin Services performed by an employee for an employer are not taxable. Services performed deleted text end deleted text begin by a partnership or association for another partnership or association are not taxable if deleted text end deleted text begin one of the entities owns or controls more than 80 percent of the voting power of the deleted text end deleted text begin equity interest in the other entity. Services performed between members of an affiliated deleted text end deleted text begin group of corporations are not taxable. For purposes of the preceding sentence, "affiliated deleted text end deleted text begin group of corporations" means those entities that would be classified as members of an deleted text end deleted text begin affiliated group as defined under United States Code, title 26, section 1504, disregarding deleted text end deleted text begin the exclusions in section 1504(b). deleted text end
deleted text begin For purposes of clause (5), "road construction" means construction of (1) public roads, (2) cartways, and (3) private roads in townships located outside of the seven-county metropolitan area up to the point of the emergency response location sign. deleted text end
(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, deleted text begin cabledeleted text end new text begin and paynew text end television servicesdeleted text begin , and direct satellite servicesdeleted text end . 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.
new text begin (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 end
new text begin (m) A sale and purchase includes the furnishing for consideration of the following services: new text end
new text begin (1) repairing and maintaining electronic and precision equipment, which service can be deducted as a business expense under the Internal Revenue Code. This includes, but is not limited to, repair or maintenance of electronic devices, computers and computer peripherals, monitors, computer terminals, storage devices, and CD-ROM drives; other office equipment such as photocopying machines, printers, and facsimile machines; televisions, stereos, sound systems, video or digital recorders and players; two-way radios and other communications equipment; radar and sonar equipment, scientific instruments, microscopes, and medical equipment; new text end
new text begin (2) repairing and maintaining commercial and industrial machinery and equipment. For purposes of this subdivision, the following items are not commercial or industrial machinery and equipment: (i) motor vehicles; (ii) furniture and fixtures; (iii) ships; (iv) railroad stock; and (v) aircraft; and new text end
new text begin (3) warehousing or storage services for tangible personal property, excluding: new text end
new text begin (i) agricultural products; new text end
new text begin (ii) refrigerated storage; new text end
new text begin (iii) electronic data; and new text end
new text begin (iv) self-storage services and storage of motor vehicles, recreational vehicles, and boats, not eligible to be deducted as a business expense under the Internal Revenue Code. new text end
new text begin This section is effective for sales and purchases made after June 30, 2013, except that paragraph (m), clause (3), is effective for sales and purchases made after March 31, 2014. new text end
(a) A "retail sale" meansnew text begin :new text end
new text begin (1)new text end any sale, lease, or rental new text begin of tangible personal property new text end for any purpose, other than resale, sublease, or subrent of items by the purchaser in the normal course of business as defined in subdivision 21new text begin ; andnew text end
new text begin (2) any sale of a service enumerated in subdivision 3, for any purpose other than resale by the purchaser in the normal course of business as defined in subdivision 21new text end .
(b) A sale of property used by the owner only by leasing it to others or by holding it in an effort to lease it, and put to no use by the owner other than resale after the lease or effort to lease, is a sale of property for resale.
(c) A sale of master computer software that is purchased and used to make copies for sale or lease is a sale of property for resale.
(d) A sale of building materials, supplies, and equipment to owners, contractors, subcontractors, or builders for the erection of buildings or the alteration, repair, or improvement of real property is a retail sale in whatever quantity sold, whether the sale is for purposes of resale in the form of real property or otherwise.
(e) A sale of carpeting, linoleum, or similar floor covering to a person who provides for installation of the floor covering is a retail sale and not a sale for resale since a sale of floor covering which includes installation is a contract for the improvement of real property.
(f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides for installation of the items is a retail sale and not a sale for resale since a sale of shrubbery, plants, sod, trees, and similar items that includes installation is a contract for the improvement of real property.
(g) A sale of tangible personal property that is awarded as prizes is a retail sale and is not considered a sale of property for resale.
(h) A sale of tangible personal property utilized or employed in the furnishing or providing of services under subdivision 3, paragraph (g), clause (1), including, but not limited to, property given as promotional items, is a retail sale and is not considered a sale of property for resale.
(i) A sale of tangible personal property used in conducting lawful gambling under chapter 349 or the State Lottery under chapter 349A, including, but not limited to, property given as promotional items, is a retail sale and is not considered a sale of property for resale.
(j) a sale of machines, equipment, or devices that are used to furnish, provide, or dispense goods or services, including, but not limited to, coin-operated devices, is a retail sale and is not considered a sale of property for resale.
(k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease payment becomes due under the terms of the agreement or the trade practices of the lessor or (2) in the case of a lease of a motor vehicle, as defined in section 297B.01, subdivision 11, but excluding vehicles with a manufacturer's gross vehicle weight rating greater than 10,000 pounds and rentals of vehicles for not more than 28 days, at the time the lease is executed.
(l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of title or possession of the tangible personal property.
(m) A sale of a bundled transaction in which one or more of the products included in the bundle is a taxable product is a retail sale, except that if one of the products is a telecommunication service, ancillary service, Internet access, or audio or video programming service, and the seller has maintained books and records identifying through reasonable and verifiable standards the portions of the price that are attributable to the distinct and separately identifiable products, then the products are not considered part of a bundled transaction. For purposes of this paragraph:
(1) the books and records maintained by the seller must be maintained in the regular course of business, and do not include books and records created and maintained by the seller primarily for tax purposes;
(2) books and records maintained in the regular course of business include, but are not limited to, financial statements, general ledgers, invoicing and billing systems and reports, and reports for regulatory tariffs and other regulatory matters; and
(3) books and records are maintained primarily for tax purposes when the books and records identify taxable and nontaxable portions of the price, but the seller maintains other books and records that identify different prices attributable to the distinct products included in the same bundled transaction.
new text begin (n) A sale of motor vehicle repair paint and materials by a motor vehicle repair or body shop business is a retail sale and the sales tax is imposed on the gross receipts from the retail sale of the paint and materials. The motor vehicle repair or body shop that purchases motor vehicle repair paint and motor vehicle repair materials for resale must either: new text end
new text begin (1) separately state each item of paint and each item of materials, and the sales price of each, on the invoice to the purchaser; or new text end
new text begin (2) in order to calculate the sales price of the paint and materials, use a method which estimates the amount and monetary value of the paint and materials used in the repair of the motor vehicle by multiplying the number of labor hours by a rate of consideration for the paint and materials used in the repair of the motor vehicle following industry standard practices that fairly calculate the gross receipts from the retail sale of the motor vehicle repair paint and motor vehicle repair materials. An industry standard practice fairly calculates the gross receipts if the sales price of the paint and materials used or consumed in the repair of a motor vehicle equals or exceeds the purchase price paid by the motor vehicle repair or body shop business. Under this clause, the invoice must either separately state the "paint and materials" as a single taxable item, or separately state "paint" as a taxable item and "materials" as a taxable item. This clause does not apply to wholesale transactions at an auto auction facility. new text end
new text begin (o) A sale of specified digital products or other digital products to an end user with or without rights of permanent use and regardless of whether rights of use are conditioned upon payment by the purchaser is a retail sale. When a digital code has been purchased that relates to specified digital products or other digital products, the subsequent receipt of or access to the related specified digital products or other digital products is not a retail sale. new text end
new text begin (p) A payment made to a cooperative electric association or public utility as a contribution in aid of construction is a contract for improvement to real property and is not a retail sale. new text end
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
(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:
(1) large ponderous machinery and equipment used in a business or production activity which at common law would be considered to be real property;
(2) property which is subject to an ad valorem property tax;
(3) property described in section 272.02, subdivision 9, clauses (a) to (d); deleted text begin anddeleted text end
(4) property described in section 272.03, subdivision 2, clauses (3) and (5)deleted text begin .deleted text end new text begin ; andnew text end
new text begin (5) specified digital products, or other digital products, transferred electronically. new text end
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
"deleted text begin Cabledeleted text end new text begin Paynew text end television service" means the transmission of video, audio, or other programming service to purchasers, and the subscriber interaction, if any, required for the selection or use of the programming service, regardless of whether the programming is transmitted over facilities owned or operated by the cable service provider or over facilities owned or operated by one or more dealers of communications services. The term includes point-to-multipoint distribution new text begin direct to home satellite new text end services by which programming is transmitted or broadcast by microwave or other equipment directly to the subscriber's premisesnew text begin , or any similar or comparable method of servicenew text end . The term includes deleted text begin basic, extended, premium,deleted text end new text begin all programming services, including subscriptions, digital video recorders,new text end pay-per-view, deleted text begin digital,deleted text end and music services.
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
(a) "Bundled transaction" means the retail sale of two or more products when the products are otherwise distinct and identifiable, and the products are sold for one nonitemized price. As used in this subdivision, "product" includes tangible personal property, services, intangibles, and digital goodsnew text begin , including specified digital products or other digital productsnew text end , but does not include real property or services to real property. A bundled transaction does not include the sale of any products in which the sales price varies, or is negotiable, based on the selection by the purchaser of the products included in the transaction.
(b) For purposes of this subdivision, "distinct and identifiable" products does not include:
(1) packaging and other materials, such as containers, boxes, sacks, bags, and bottles, wrapping, labels, tags, and instruction guides, that accompany the retail sale of the products and are incidental or immaterial to the retail sale. Examples of packaging that are incidental or immaterial include grocery sacks, shoe boxes, dry cleaning garment bags, and express delivery envelopes and boxes;
(2) a promotional product provided free of charge with the required purchase of another product. A promotional product is provided free of charge if the sales price of another product, which is required to be purchased in order to receive the promotional product, does not vary depending on the inclusion of the promotional product; and
(3) items included in the definition of sales price.
(c) For purposes of this subdivision, the term "one nonitemized price" does not include a price that is separately identified by product on binding sales or other supporting sales-related documentation made available to the customer in paper or electronic form including but not limited to an invoice, bill of sale, receipt, contract, service agreement, lease agreement, periodic notice of rates and services, rate card, or price list.
(d) A transaction that otherwise meets the definition of a bundled transaction is not a bundled transaction if it is:
(1) the retail sale of tangible personal property and a service and the tangible personal property is essential to the use of the service, and is provided exclusively in connection with the service, and the true object of the transaction is the service;
(2) the retail sale of services if one service is provided that is essential to the use or receipt of a second service and the first service is provided exclusively in connection with the second service and the true object of the transaction is the second service;
(3) a transaction that includes taxable products and nontaxable products and the purchase price or sales price of the taxable products is de minimis; or
(4) the retail sale of exempt tangible personal property and taxable tangible personal property if:
(i) the transaction includes food and food ingredients, drugs, durable medical equipment, mobility enhancing equipment, over-the-counter drugs, prosthetic devices, or medical supplies; and
(ii) the seller's purchase price or sales price of the taxable tangible personal property is 50 percent or less of the total purchase price or sales price of the bundled tangible personal property. Sellers must not use a combination of the purchase price and sales price of the tangible personal property when making the 50 percent determination for a transaction.
(e) For purposes of this subdivision, "purchase price" means the measure subject to use tax on purchases made by the seller, and "de minimis" means that the seller's purchase price or sales price of the taxable products is ten percent or less of the total purchase price or sales price of the bundled products. Sellers shall use either the purchase price or the sales price of the products to determine if the taxable products are de minimis. Sellers must not use a combination of the purchase price and sales price of the products to determine if the taxable products are de minimis. Sellers shall use the full term of a service contract to determine if the taxable products are de minimis.
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
"Ring tone" means a digitized sound file that is downloaded onto a device and that may be used to alert the customer deleted text begin of a telecommunication servicedeleted text end with respect to a communication.new text begin A ring tone does not include ring back tones or other digital audio files that are not stored on the purchaser's communication device.new text end
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
new text begin "Motor vehicle repair paint" means a substance composed of solid matter suspended in a liquid medium and applied as a protective or decorative coating to the surface of a motor vehicle in order to restore the motor vehicle to its original condition, and includes primer, body paint, clear coat, and paint thinner used to paint motor vehicles, as defined in section 297B.01. new text end
new text begin "Motor vehicle repair materials" means items, other than motor vehicle repair paint or motor vehicle parts, that become a part of a repaired motor vehicle or are consumed in repairing the motor vehicle at retail, and include abrasives, battery water, body filler or putty, bolts and nuts, brake fluid, buffing pads, chamois, cleaning compounds, degreasing compounds, glaze, grease, grinding discs, hydraulic jack oil, lubricants, masking tape, oxygen and acetylene, polishes, rags, razor blades, sandpaper, sanding discs, scuff pads, sealer, solder, solvents, striping tape, tack cloth, thinner, waxes, and welding rods. Motor vehicle repair materials do not include items that are not used directly on the motor vehicle, such as floor dry that is used to clean the shop, or cleaning compounds and rags that are used to clean tools, equipment, or the shop and are not used to clean the motor vehicle. new text end
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
new text begin "Digital audio works" means works that result from a fixation of a series of musical, spoken, or other sounds, that are transferred electronically. Digital audio works includes such items as the following which may either be prerecorded or live: songs, music, readings of books or other written materials, speeches, ring tones, or other sound recordings. Digital audio works does not include audio greeting cards sent by electronic mail. Unless the context provides otherwise, in this chapter digital audio works includes the digital code, or a subscription to or access to a digital code, for receiving, accessing, or otherwise obtaining digital audio works. new text end
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
new text begin "Digital audiovisual works" means a series of related images which, when shown in succession, impart an impression of motion, together with accompanying sounds, if any, that are transferred electronically. Digital audiovisual works includes such items as motion pictures, movies, musical videos, news and entertainment, and live events. Digital audiovisual works does not include video greeting cards sent by electronic mail. Unless the context provides otherwise, in this chapter digital audiovisual works includes the digital code, or a subscription to or access to a digital code, for receiving, accessing, or otherwise obtaining digital audiovisual works. new text end
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
new text begin "Digital books" means any literary works, other than digital audiovisual works or digital audio works, expressed in words, numbers, or other verbal or numerical symbols or indicia so long as the product is generally recognized in the ordinary and usual sense as a "book." It includes works of fiction and nonfiction and short stories. It does not include periodicals, magazines, newspapers, or other news or information products, chat rooms, or weblogs. Unless the context provides otherwise, in this chapter digital books includes the digital code, or a subscription to or access to a digital code, for receiving, accessing, or otherwise obtaining digital books. new text end
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
new text begin "Digital code" means a code which provides a purchaser with a right to obtain one or more specified digital products or other digital products. A digital code may be transferred electronically, such as through electronic mail, or it may be transferred on a tangible medium, such as on a plastic card, a piece of paper or invoice, or imprinted on another product. A digital code is not a code that represents a stored monetary value that is deducted from a total as it is used by the purchaser, and it is not a code that represents a redeemable card, gift card, or gift certificate that entitles the holder to select a digital product of an indicated cash value. The end user of a digital code is any purchaser except one who receives the contractual right to redistribute a digital product which is the subject of the transaction. new text end
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
new text begin "Other digital products" means the following items when transferred electronically: new text end
new text begin (1) greeting cards; and new text end
new text begin (2) online video or electronic games. new text end
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
new text begin "Specified digital products" means digital audio works, digital audiovisual works, and digital books that are transferred electronically to a customer. new text end
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
new text begin "Transferred electronically" means obtained by the purchaser by means other than tangible storage media. For purposes of this subdivision, it is not necessary that a copy of the product be physically transferred to the purchaser. A product will be considered to have been transferred electronically to a purchaser if the purchaser has access to the product. new text end
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
new text begin "Self-storage service" means a storage service that provides secure areas, such as rooms, units, compartments or containers, whether accessible from outside or from within a building, that are designated for the use of a purchaser, where the purchaser retains the care custody and control of their property, including self-storage units, mini-storage units, and areas by any other name to which the purchaser retains either unlimited free access or free access within reasonable business hours or upon reasonable notice to the service provider to add or remove property, but does not mean the rental of an entire building, such as a warehouse. Self-storage service does not include general warehousing and storage services where the warehouse typically handles, stores, and retrieves a purchaser's property using the warehouse's staff and equipment, and does not allow the purchaser free access to the storage space and does not include bailments. new text end
new text begin This section is effective July 1, 2013. new text end
A tax is imposed on the lease or rental in this state for not more than 28 days of a passenger automobile as defined in section 168.002, subdivision 24, a van as defined in section 168.002, subdivision 40, or a pickup truck as defined in section 168.002, subdivision 26. The rate of tax is deleted text begin 6.2deleted text end new text begin 9.2 new text end percent of the sales price. The tax applies whether or not the vehicle is licensed in the state.
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
(a) To the extent allowed by the United States Constitution and deleted text begin the laws of the United Statesdeleted text end new text begin in accordance with the terms and conditions of federal remote seller lawnew text end , a retailer making retail sales from outside this state to a destination within this state and not maintaining a place of business in this state shall collect sales and use taxes and remit them to the commissioner under section 297A.77deleted text begin ,deleted text end new text begin .new text end
new text begin (b) To the extent allowed by the United States Constitution and the laws of the United States, a retailer making retail sales from outside this state to a destination within this state and not maintaining a place of business in this state shall collect sales and use taxes and remit them to the commissioner under section 297A.77,new text end if the retailer engages in the regular or systematic soliciting of sales from potential customers in this state by:
(1) distribution, by mail or otherwise, of catalogs, periodicals, advertising flyers, or other written solicitations of business to customers in this state;
(2) display of advertisements on billboards or other outdoor advertising in this state;
(3) advertisements in newspapers published in this state;
(4) advertisements in trade journals or other periodicals the circulation of which is primarily within this state;
(5) advertisements in a Minnesota edition of a national or regional publication or a limited regional edition in which this state is included as part of a broader regional or national publication which are not placed in other geographically defined editions of the same issue of the same publication;
(6) advertisements in regional or national publications in an edition which is not by its contents geographically targeted to Minnesota but which is sold over the counter in Minnesota or by subscription to Minnesota residents;
(7) advertisements broadcast on a radio or television station located in Minnesota; or
(8) any other solicitation by telegraphy, telephone, computer database, cable, optic, microwave, or other communication system.
This paragraph (a) must be construed without regard to the state from which distribution of the materials originated or in which they were prepared.
(b) The location within or without this state of independent vendors that provide products or services to the retailer in connection with its solicitation of customers within this state, including such products and services as creation of copy, printing, distribution, and recording, is not considered in determining whether the retailer is required to collect tax.
(c) A retailer not maintaining a place of business in this state is presumed, subject to rebuttal, to be engaged in regular solicitation within this state if it engages in any of the activities in paragraph (a) and:
(1) makes 100 or more retail sales from outside this state to destinations in this state during a period of 12 consecutive months; or
(2) makes ten or more retail sales totaling more than $100,000 from outside this state to destinations in this state during a period of 12 consecutive months.
new text begin This section is effective the day after final enactment. new text end
new text begin (a) "Solicitor," for purposes of subdivision 1, paragraph (a), means a person, whether an independent contractor or other representative, who directly or indirectly solicits business for the retailer. new text end
new text begin (b) A retailer is presumed to have a solicitor in this state if it enters into an agreement with a resident under which the resident, for a commission or other substantially similar consideration, directly or indirectly refers potential customers, whether by a link on an Internet Web site, or otherwise, to the seller. This paragraph only applies if the total gross receipts are at least $10,000 in the 12-month period ending on the last day of the most recent calendar quarter before the calendar quarter in which the sale is made. For purposes of this paragraph, gross receipts means receipts from sales to customers located in the state who were referred to the retailer by all residents with this type of agreement with the retailer. new text end
new text begin (c) The presumption under paragraph (b) may be rebutted by proof that the resident with whom the seller has an agreement did not engage in any solicitation in the state on behalf of the retailer that would satisfy the nexus requirement of the United States Constitution during the 12-month period in question. Nothing in this section shall be construed to narrow the scope of the terms affiliate, agent, salesperson, canvasser, or other representative for purposes of subdivision 1, paragraph (a). new text end
new text begin (d) For purposes of this paragraph, "resident" includes an individual who is a resident of this state, as defined in section 290.01, or a business that owns tangible personal property located in this state or has one or more employees providing services for the business in this state. new text end
new text begin (e) This subdivision does not apply to chapter 290 and does not expand or contract the jurisdiction to tax a trade or business under chapter 290. new text end
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
(a) For the purpose of the proper administration of this chapter and to prevent evasion of the tax, until the contrary is established, it is presumed that:
(1) all gross receipts are subject to the tax; and
(2) all retail sales for delivery in Minnesota are for storage, use, or other consumption in Minnesota.
(b) The burden of proving that a sale is not a taxable retail sale is on the seller. However, a seller is relieved of liability if:
(1) the seller obtains a fully completed exemption certificate or all the relevant information required by section 297A.72, subdivision 2, at the time of the sale or within 90 days after the date of the sale; deleted text begin ordeleted text end
(2) if the seller has not obtained a fully completed exemption certificate or all the relevant information required by section 297A.72, subdivision 2, within the time provided in clause (1), within 120 days after a request for substantiation by the commissioner, the seller either:
(i) obtains in good faith a fully completed exemption certificate or all the relevant information required by section 297A.72, subdivision 2, from the purchaser; or
(ii) proves by other means that the transaction was not subject to taxnew text begin ;new text end
new text begin (3) in the case of drop shipment sales, a seller engaged in drop shipping may claim a resale exemption based on an exemption certificate provided by its customer or reseller, or any other acceptable information available to the seller engaged in drop shipping evidencing qualification for a resale exemption, regardless of whether the customer or reseller is registered to collect and remit sales and use tax in the statenew text end .
(c) Notwithstanding paragraph (b), relief from liability does not apply to a seller who:
(1) fraudulently fails to collect the tax; or
(2) solicits purchasers to participate in the unlawful claim of an exemption.
(d) A certified service provider, as defined in section 297A.995, subdivision 2, is relieved of liability under this section to the extent a seller who is its client is relieved of liability.
(e) A purchaser of tangible personal property or any items listed in section 297A.63 that are shipped or brought to Minnesota by the purchaser has the burden of proving that the property was not purchased from a retailer for storage, use, or consumption in Minnesota.
(f) If a seller claims that certain sales are exempt and does not provide the certificate, information, or proof required by paragraph (b), clause (2), within 120 days after the date of the commissioner's request for substantiation, then the exemptions claimed by the seller that required substantiation are disallowed.
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
new text begin (a) Notwithstanding the provisions of subdivisions 2 and 3, a business purchaser that has not received authorization to pay the tax directly to the commissioner may use an exemption certificate indicating multiple points of use if: new text end
new text begin (1) the purchaser knows at the time of its purchase of a digital good, computer software delivered electronically, or a service that the good or service will be concurrently available for use in more than one taxing jurisdiction; and new text end
new text begin (2) the purchaser delivers to the seller the exemption certificate indicating multiple points of use at the time of purchase. new text end
new text begin (b) Upon receipt of the fully completed exemption certificate indicating multiple points of use, the seller is relieved of the obligation to collect, pay, or remit the applicable tax and the purchaser is obligated to collect, pay, or remit the applicable tax on a direct pay basis. The provisions of section 297A.665 apply to this paragraph. new text end
new text begin (c) The purchaser delivering the exemption certificate indicating multiple points of use may use any reasonable but consistent and uniform method of apportionment that is supported by the purchaser's business records as they exist at the time of the consummation of the sale. new text end
new text begin (d) The purchaser shall provide the exemption certificate indicating multiple points of use to the seller at the time of purchase. new text end
new text begin (e) A purchaser that has received authorization to pay the tax directly to the commissioner is not required to deliver to the seller an exemption certificate indicating multiple points of use. A purchaser that has received authorization to pay the tax directly to the commissioner shall follow the provisions of paragraph (c) in apportioning the tax due on a digital good, computer software delivered electronically, or a service that will be concurrently available for use in more than one taxing jurisdiction. new text end
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
(a) Sales of the following drugs and medical devices for human use are exempt:
(1) drugs, including over-the-counter drugs;
(2) single-use finger-pricking devices for the extraction of blood and other single-use devices and single-use diagnostic agents used in diagnosing, monitoring, or treating diabetes;
(3) insulin and medical oxygen for human use, regardless of whether prescribed or sold over the counter;
(4) prosthetic devices;
(5) durable medical equipment for home use only;
(6) mobility enhancing equipment;
(7) prescription corrective eyeglasses; and
(8) kidney dialysis equipment, including repair and replacement parts.
new text begin (b) Items purchased in transactions covered by: new text end
new text begin (1) Medicare as defined under title XVIII of the Social Security Act, United States Code, title 42, section 1395, et seq.; or new text end
new text begin (2) Medicaid as defined under title XIX of the Social Security Act, United States Code, title 42, section 1396, et seq. new text end
deleted text begin (b)deleted text end new text begin (c)new text end For purposes of this subdivision:
(1) "Drug" means a compound, substance, or preparation, and any component of a compound, substance, or preparation, other than food and food ingredients, dietary supplements, or alcoholic beverages that is:
(i) recognized in the official United States Pharmacopoeia, official Homeopathic Pharmacopoeia of the United States, or official National Formulary, and supplement to any of them;
(ii) intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease; or
(iii) intended to affect the structure or any function of the body.
(2) "Durable medical equipment" means equipment, including repair and replacement parts, new text begin including single-patient use items, new text end but not including mobility enhancing equipment, that:
(i) can withstand repeated use;
(ii) is primarily and customarily used to serve a medical purpose;
(iii) generally is not useful to a person in the absence of illness or injury; and
(iv) is not worn in or on the body.
For purposes of this clause, "repair and replacement parts" includes all components or attachments used in conjunction with the durable medical equipment, deleted text begin but does not includedeleted text end new text begin includingnew text end repair and replacement parts which are for single patient use only.
(3) "Mobility enhancing equipment" means equipment, including repair and replacement parts, but not including durable medical equipment, that:
(i) is primarily and customarily used to provide or increase the ability to move from one place to another and that is appropriate for use either in a home or a motor vehicle;
(ii) is not generally used by persons with normal mobility; and
(iii) does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer.
(4) "Over-the-counter drug" means a drug that contains a label that identifies the product as a drug as required by Code of Federal Regulations, title 21, section 201.66. The label must include a "drug facts" panel or a statement of the active ingredients with a list of those ingredients contained in the compound, substance, or preparation. Over-the-counter drugs do not include grooming and hygiene products, regardless of whether they otherwise meet the definition. "Grooming and hygiene products" are soaps, cleaning solutions, shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and sunscreens.
(5) "Prescribed" and "prescription" means a direction in the form of an order, formula, or recipe issued in any form of oral, written, electronic, or other means of transmission by a duly licensed health care professional.
(6) "Prosthetic device" means a replacement, corrective, or supportive device, including repair and replacement parts, worn on or in the body to:
(i) artificially replace a missing portion of the body;
(ii) prevent or correct physical deformity or malfunction; or
(iii) support a weak or deformed portion of the body.
Prosthetic device does not include corrective eyeglasses.
(7) "Kidney dialysis equipment" means equipment that:
(i) is used to remove waste products that build up in the blood when the kidneys are not able to do so on their own; and
(ii) can withstand repeated use, including multiple use by a single patient, notwithstanding the provisions of clause (2).
new text begin (8) A transaction is covered by Medicare or Medicaid if any portion of the cost of the item purchased in the transaction is paid for or reimbursed by the federal government or the state of Minnesota pursuant to the Medicare or Medicaid program, by a private insurance company administering the Medicare or Medicaid program on behalf of the federal government or the state of Minnesota, or by a managed care organization for the benefit of a patient enrolled in a prepaid program that furnishes medical services in lieu of conventional Medicare or Medicaid coverage pursuant to agreement with the federal government or the state of Minnesota. new text end
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
new text begin Accessories and supplies required for the effective use of durable medical equipment for home use only or purchased in a transaction covered by medicare or Medicaid, that are not already exempt under section 297A.67, subdivision 7, are exempt. Accessories and supplies for the effective use of a prosthetic device that are not already exempt under section 297A.67, subdivision 7, are exempt. For purposes of this subdivision "durable medical equipment," "prosthetic device," "Medicare," and "Medicaid" have the definitions given in section 297A.67, subdivision 7. new text end
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
Textbooksnew text begin , including digital books,new text end that are prescribed for use in conjunction with a course of study in a school, college, university, and private career school to students who are regularly enrolled at such institutions are exempt. For purposes of this subdivision (1) a "school" is as defined in section 120A.22, subdivision 4; and (2) "private career school" means a school licensed under section 141.25.
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
(a) Materials stored, used, or consumed in industrial production ofnew text begin tangiblenew text end personal property intended to be sold ultimately at retailnew text begin ,new text end are exempt, whether or not the item so used becomes an ingredient or constituent part of the property produced. Materials that qualify for this exemption include, but are not limited to, the following:
(1) chemicals, including chemicals used for cleaning food processing machinery and equipment;
(2) materials, including chemicals, fuels, and electricity purchased by persons engaged in industrial production to treat waste generated as a result of the production process;
(3) fuels, electricity, gas, and steam used or consumed in the production process, except that electricity, gas, or steam used for space heating, cooling, or lighting is exempt if (i) it is in excess of the average climate control or lighting for the production area, and (ii) it is necessary to produce that particular product;
(4) petroleum products and lubricants;
(5) packaging materials, including returnable containers used in packaging food and beverage products;
(6) accessory tools, equipment, and other items that are separate detachable units with an ordinary useful life of less than 12 months used in producing a direct effect upon the product; and
(7) the following materials, tools, and equipment used in metal-casting: crucibles, thermocouple protection sheaths and tubes, stalk tubes, refractory materials, molten metal filters and filter boxes, degassing lances, and base blocks.
(b) This exemption does not include:
(1) machinery, equipment, implements, tools, accessories, appliances, contrivances and furniture and fixtures, except those listed in paragraph (a), clause (6); and
(2) petroleum and special fuels used in producing or generating power for propelling ready-mixed concrete trucks on the public highways of this state.
(c) Industrial production includes, but is not limited to, research, development, design or production of any tangible personal property, manufacturing, processing (other than by restaurants and consumers) of agricultural products (whether vegetable or animal), commercial fishing, refining, smelting, reducing, brewing, distilling, printing, mining, quarrying, lumbering, generating electricity, the production of road building materials, and the research, development, design, or production of computer software. Industrial production does not include painting, cleaning, repairing or similar processing of property except as part of the original manufacturing process.
(d) Industrial production does not include:
(1) the furnishing of services listed in section 297A.61, subdivision 3, paragraph (g), clause (6), items (i) to (vi) and (viii)new text begin , or paragraph (m)new text end ; or
(2) the transportation, transmission, or distribution of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines, tanks, mains, or other means of transporting those products. For purposes of this paragraph, "transportation, transmission, or distribution" does not include blending of petroleum or biodiesel fuel as defined in section 239.77.
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
(a) Capital equipment is exempt. deleted text begin 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.deleted text end
"Capital equipment" means machinery and equipment purchased or leased, and used in this state by the purchaser or lessee primarily for manufacturing, fabricating, mining, or refining tangible personal property to be sold ultimately at retail if the machinery and equipment are essential to the integrated production process of manufacturing, fabricating, mining, or refining. Capital equipment also includes machinery and equipment used primarily to electronically transmit results retrieved by a customer of an online computerized data retrieval system.
(b) Capital equipment includes, but is not limited to:
(1) machinery and equipment used to operate, control, or regulate the production equipment;
(2) machinery and equipment used for research and development, design, quality control, and testing activities;
(3) environmental control devices that are used to maintain conditions such as temperature, humidity, light, or air pressure when those conditions are essential to and are part of the production process;
(4) materials and supplies used to construct and install machinery or equipment;
(5) repair and replacement parts, including accessories, whether purchased as spare parts, repair parts, or as upgrades or modifications to machinery or equipment;
(6) materials used for foundations that support machinery or equipment;
(7) materials used to construct and install special purpose buildings used in the production process;
(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed as part of the delivery process regardless if mounted on a chassis, repair parts for ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and
(9) machinery or equipment used for research, development, design, or production of computer software.
(c) Capital equipment does not include the following:
(1) motor vehicles taxed under chapter 297B;
(2) machinery or equipment used to receive or store raw materials;
(3) building materials, except for materials included in paragraph (b), clauses (6) and (7);
(4) machinery or equipment used for nonproduction purposes, including, but not limited to, the following: plant security, fire prevention, first aid, and hospital stations; support operations or administration; pollution control; and plant cleaning, disposal of scrap and waste, plant communications, space heating, cooling, lighting, or safety;
(5) farm machinery and aquaculture production equipment as defined by section 297A.61, subdivisions 12 and 13;
(6) machinery or equipment purchased and installed by a contractor as part of an improvement to real property;
(7) machinery and equipment used by restaurants in the furnishing, preparing, or serving of prepared foods as defined in section 297A.61, subdivision 31;
(8) machinery and equipment used to furnish the services listed in section 297A.61, subdivision 3, paragraph (g), clause (6), items (i) to (vi) and (viii);
(9) machinery or equipment used in the transportation, transmission, or distribution of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines, tanks, mains, or other means of transporting those products. This clause does not apply to machinery or equipment used to blend petroleum or biodiesel fuel as defined in section 239.77; or
(10) any other item that is not essential to the integrated process of manufacturing, fabricating, mining, or refining.
(d) For purposes of this subdivision:
(1) "Equipment" means independent devices or tools separate from machinery but essential to an integrated production process, including computers and computer software, used in operating, controlling, or regulating machinery and equipment; and any subunit or assembly comprising a component of any machinery or accessory or attachment parts of machinery, such as tools, dies, jigs, patterns, and molds.
(2) "Fabricating" means to make, build, create, produce, or assemble components or property to work in a new or different manner.
(3) "Integrated production process" means a process or series of operations through which tangible personal property is manufactured, fabricated, mined, or refined. For purposes of this clause, (i) manufacturing begins with the removal of raw materials from inventory and ends when the last process prior to loading for shipment has been completed; (ii) fabricating begins with the removal from storage or inventory of the property to be assembled, processed, altered, or modified and ends with the creation or production of the new or changed product; (iii) mining begins with the removal of overburden from the site of the ores, minerals, stone, peat deposit, or surface materials and ends when the last process before stockpiling is completed; and (iv) refining begins with the removal from inventory or storage of a natural resource and ends with the conversion of the item to its completed form.
(4) "Machinery" means mechanical, electronic, or electrical devices, including computers and computer software, that are purchased or constructed to be used for the activities set forth in paragraph (a), beginning with the removal of raw materials from inventory through completion of the product, including packaging of the product.
(5) "Machinery and equipment used for pollution control" means machinery and equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity described in paragraph (a).
(6) "Manufacturing" means an operation or series of operations where raw materials are changed in form, composition, or condition by machinery and equipment and which results in the production of a new article of tangible personal property. For purposes of this subdivision, "manufacturing" includes the generation of electricity or steam to be sold at retail.
(7) "Mining" means the extraction of minerals, ores, stone, or peat.
(8) "Online data retrieval system" means a system whose cumulation of information is equally available and accessible to all its customers.
(9) "Primarily" means machinery and equipment used 50 percent or more of the time in an activity described in paragraph (a).
(10) "Refining" means the process of converting a natural resource to an intermediate or finished product, including the treatment of water to be sold at retail.
(11) This subdivision does not apply to telecommunications equipment as provided in subdivision 35, and does not apply to wire, cable, fiber, poles, or conduit for telecommunications services.
new text begin This section is effective for sales and purchases made after August 31, 2014. new text end
(a) Purchases of enterprise information technology equipment and computer software for use in a qualified data centernew text begin , or a qualified refurbished data center,new text end are exempt. The tax on purchases exempt under this paragraph must be imposed and collected as if the rate under section 297A.62, subdivision 1, applied, and then refunded after June 30, 2013, in the manner provided in section 297A.75. This exemption includes enterprise information technology equipment and computer software purchased to replace or upgrade enterprise information technology equipment and computer software in a qualified data centernew text begin , or a qualified refurbished data centernew text end .
(b) Electricity used or consumed in the operation of a qualified data center is exempt.
(c) For purposes of this subdivision, "qualified data centernew text begin , or a qualified refurbished data center,new text end " means a facility in Minnesota:
(1) that is comprised of one or more buildings that consist in the aggregate of at least deleted text begin 30,000deleted text end new text begin 25,000new text end square feet, and that are located on a single parcel or on contiguous parcels, where the total cost of construction or refurbishment, investment in enterprise information technology equipment, and computer software is at least deleted text begin $50,000,000deleted text end new text begin $30,000,000new text end within a deleted text begin 24deleted text end new text begin 48new text end -month period;
(2) that is constructed or substantially refurbished after June 30, 2012, where "substantially refurbished" means that at least deleted text begin 30,000deleted text end new text begin 25,000new text end square feet have been rebuilt or modifieddeleted text begin ; anddeleted text end new text begin , including:new text end
new text begin (i) installation of enterprise information technology equipment, environmental control, computer software, and energy efficiency improvements; and new text end
new text begin (ii) building improvements; and new text end
(3) that is used to house enterprise information technology equipment, where the facility has the following characteristics:
(i) uninterruptible power supplies, generator backup power, or both;
(ii) sophisticated fire suppression and prevention systems; and
(iii) enhanced security. A facility will be considered to have enhanced security if it has restricted access to the facility to selected personnel; permanent security guards; video camera surveillance; an electronic system requiring pass codes, keycards, or biometric scans, such as hand scans and retinal or fingerprint recognition; or similar security features.
In determining whether the facility has the required square footage, the square footage of the following spaces shall be included if the spaces support the operation of enterprise information technology equipment: office space, meeting space, and mechanical and other support facilities.new text begin For purposes of this subdivision, "computer software" includes, but is not limited to, software utilized or loaded at the qualified data center, including maintenance, licensing, and software customization.new text end
new text begin (d) For purposes of this subdivision, a "qualified refurbished data center" means an existing facility that qualifies as a data center under paragraph (c), clauses (2) and (3), but that is comprised of one or more buildings that consist in the aggregate of at least 25,000 square feet, and that are located on a single parcel or contiguous parcels, where the total cost of construction or refurbishment, investment in enterprise information technology equipment, and computer software is at least $50,000,000 within a 24-month period. new text end
deleted text begin (d)deleted text end new text begin (e)new text end For purposes of this subdivision, "enterprise information technology equipment" means computers and equipment supporting computing, networking, or data storage, including servers and routers. It includes, but is not limited to: cooling systems, cooling towers, and other temperature control infrastructure; power infrastructure for transformation, distribution, or management of electricity used for the maintenance and operation of a qualified data center, including but not limited to exterior dedicated business-owned substations, backup power generation systems, battery systems, and related infrastructure; and racking systems, cabling, and trays, which are necessary for the maintenance and operation of the qualified data center.
deleted text begin (e)deleted text end new text begin (f)new text end A qualified data center may claim the exemptions in this subdivision for purchases made either within 20 years of the date of its first purchase qualifying for the exemption under paragraph (a), or by June 30, 2042, whichever is earlier.
deleted text begin (f)deleted text end new text begin (g)new text end The purpose of this exemption is to create jobs in the construction and data center industries.
deleted text begin (g)deleted text end new text begin (h)new text end This subdivision is effective for sales and purchases made after June 30, 2012, and before July 1, 2042.
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
new text begin (a) Purchases and use of tangible personal property or taxable services by a qualified business, as defined in section 116J.8738, are exempt if: new text end
new text begin (1) the business subsidy agreement provides that the exemption under this subdivision applies; new text end
new text begin (2) the property or services are primarily used or consumed in greater Minnesota; and new text end
new text begin (3) the purchase was made and delivery received during the duration of the certification of the business as a qualified business under section 116J.8738. new text end
new text begin (b) Purchase and use of construction materials and supplies used or consumed in, and equipment incorporated into, the construction of improvements to real property in greater Minnesota are exempt if the improvements after completion of construction are to be used in the conduct of the trade or business of the qualified business, as defined in section 116J.8738. This exemption applies regardless of whether the purchases are made by the business or a contractor. new text end
new text begin (c) The exemptions under this subdivision apply to a local sales and use tax. new text end
new text begin (d) The tax on purchases imposed under this subdivision must be imposed and collected as if the rate under section 297A.62 applied, and then refunded in the manner provided in section 297A.75. No more than $7,000,000 may be refunded in a fiscal year for all purchases under this subdivision. Refunds must be allocated on a first come, first served basis. If more than $7,000,000 of eligible claims are made in a fiscal year, claims by qualified businesses carryover to the next fiscal year, and the commissioner must first allocate refunds to qualified businesses eligible for a refund in the preceding fiscal year. Any portion of the balance of funds allocated for refunds under this paragraph does not cancel and shall be carried forward to and available for refunds in subsequent fiscal years. new text end
new text begin This section is effective for sales and purchases made after June 30, 2014. new text end
(a) All sales, except those listed in paragraph (b), to the following governments and political subdivisions, or to the listed agencies or instrumentalities of governments and political subdivisions, are exempt:
(1) the United States and its agencies and instrumentalities;
(2) school districts, new text begin local governments, new text end the University of Minnesota, state universities, community colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts Education, and an instrumentality of a political subdivision that is accredited as an optional/special function school by the North Central Association of Colleges and Schools;
(3) hospitals and nursing homes owned and operated by political subdivisions of the state of tangible personal property and taxable services used at or by hospitals and nursing homes;
(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip operations provided for in section 473.4051;
(5) other states or political subdivisions of other states, if the sale would be exempt from taxation if it occurred in that state;new text begin andnew text end
(6) public libraries, public library systems, multicounty, multitype library systems as defined in section 134.001, county law libraries under chapter 134A, state agency libraries, the state library under section 480.09, and the Legislative Reference Librarydeleted text begin ; anddeleted text end new text begin .new text end
deleted text begin (7) towns. deleted text end
(b) This exemption does not apply to the sales of the following products and services:
(1) building, construction, or reconstruction materials purchased by a contractor or a subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed maximum price covering both labor and materials for use in the construction, alteration, or repair of a building or facility;
(2) construction materials purchased by tax exempt entities or their contractors to be used in constructing buildings or facilities which will not be used principally by the tax exempt entities;
(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except for leases entered into by the United States or its agencies or instrumentalities;
(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67, subdivision 2, except for lodging, prepared food, candy, soft drinks, and alcoholic beverages purchased directly by the United States or its agencies or instrumentalities; or
(5) goods or services purchased by a deleted text begin towndeleted text end new text begin local governmentnew text end as inputs to goods and services that are generally provided by a private business and the purchases would be taxable if made by a private business engaged in the same activity.
(c) As used in this subdivision, "school districts" means public school entities and districts of every kind and nature organized under the laws of the state of Minnesota, and any instrumentality of a school district, as defined in section 471.59.
new text begin (d) As used in this subdivision, "local governments" means cities, counties, and townships. new text end
deleted text begin (d)deleted text end new text begin (e)new text end As used in this subdivision, "goods or services generally provided by a private business" include, but are not limited to, goods or services provided by liquor stores, gas and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes, and laundromats. "Goods or services generally provided by a private business" do not include housing services, sewer and water services, wastewater treatment, ambulance and other public safety services, correctional services, chore or homemaking services provided to elderly or disabled individuals, or road and street maintenance or lighting.
new text begin This section is effective for sales and purchases made after December 31, 2013. new text end
(a) All sales, except those listed in paragraph (b), to the following "nonprofit organizations" are exempt:
(1) a corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes if the item purchased is used in the performance of charitable, religious, or educational functions; and
(2) any senior citizen group or association of groups that:
(i) in general limits membership to persons who are either age 55 or older, or physically disabled;
(ii) is organized and operated exclusively for pleasure, recreation, and other nonprofit purposes, not including housing, no part of the net earnings of which inures to the benefit of any private shareholders; and
(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.
For purposes of this subdivision, charitable purpose includes the maintenance of a cemetery owned by a religious organization.
(b) This exemption does not apply to the following sales:
(1) building, construction, or reconstruction materials purchased by a contractor or a subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed maximum price covering both labor and materials for use in the construction, alteration, or repair of a building or facility;
(2) construction materials purchased by tax-exempt entities or their contractors to be used in constructing buildings or facilities that will not be used principally by the tax-exempt entities; and
(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67, subdivision 2, except wine purchased by an established religious organization for sacramental purposesnew text begin or as allowed under subdivision 9anew text end ; and
(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except as provided in paragraph (c).
(c) This exemption applies to the leasing of a motor vehicle as defined in section 297B.01, subdivision 11, only if the vehicle is:
(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a passenger automobile, as defined in section 168.002, if the automobile is designed and used for carrying more than nine persons including the driver; and
(2) intended to be used primarily to transport tangible personal property or individuals, other than employees, to whom the organization provides service in performing its charitable, religious, or educational purpose.
(d) A limited liability company also qualifies for exemption under this subdivision if (1) it consists of a sole member that would qualify for the exemption, and (2) the items purchased qualify for the exemption.
new text begin This section is effective retroactively for sales and purchases made after June 30, 2012. new text end
Sales to an organization of military service veterans or an auxiliary unit of an organization of military service veterans are exempt if:
(1) the organization or auxiliary unit is organized within the state of Minnesota and is exempt from federal taxation under section 501(c), clause (19), of the Internal Revenue Code; and
(2) the tangible personal property deleted text begin isdeleted text end new text begin or services arenew text end for charitable, civic, educational, or nonprofit uses and not for social, recreational, pleasure, or profit uses.
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
(a) Sales, except for those listed in paragraph deleted text begin (c)deleted text end new text begin (d)new text end , to a hospital are exempt, if the items purchased are used in providing hospital services. For purposes of this subdivision, "hospital" means a hospital organized and operated for charitable purposes within the meaning of section 501(c)(3) of the Internal Revenue Code, and licensed under chapter 144 or by any other jurisdiction, and "hospital services" are services authorized or required to be performed by a "hospital" under chapter 144.
(b) Sales, except for those listed in paragraph deleted text begin (c)deleted text end new text begin (d)new text end , to an outpatient surgical center are exempt, if the items purchased are used in providing outpatient surgical services. For purposes of this subdivision, "outpatient surgical center" means an outpatient surgical center organized and operated for charitable purposes within the meaning of section 501(c)(3) of the Internal Revenue Code, and licensed under chapter 144 or by any other jurisdiction. For the purposes of this subdivision, "outpatient surgical services" means: (1) services authorized or required to be performed by an outpatient surgical center under chapter 144; and (2) urgent care. For purposes of this subdivision, "urgent care" means health services furnished to a person whose medical condition is sufficiently acute to require treatment unavailable through, or inappropriate to be provided by, a clinic or physician's office, but not so acute as to require treatment in a hospital emergency room.
(c) new text begin Sales, except for those listed in paragraph (d), to a critical access dental provider are exempt, if the items purchased are used in providing critical access dental care services. For the purposes of this subdivision, "critical access dental provider" means a dentist or dental clinic that qualifies under section 256B.76, subdivision 4, paragraph (b) and, in the previous calendar year, had no more than 15 percent of its patients covered by private dental insurance.new text end
new text begin (d) new text end This exemption does not apply to the following products and services:
(1) purchases made by a clinic, physician's office, or any other medical facility not operating as a hospital deleted text begin ordeleted text end new text begin ,new text end outpatient surgical center, new text begin or critical access dental provider, new text end even though the clinic, office, or facility may be owned and operated by a hospital deleted text begin ordeleted text end new text begin , new text end outpatient surgical centernew text begin , or critical access dental providernew text end ;
(2) sales under section 297A.61, subdivision 3, paragraph (g), clause (2), and prepared food, candy, and soft drinks;
(3) building and construction materials used in constructing buildings or facilities that will not be used principally by the hospital deleted text begin ordeleted text end new text begin ,new text end outpatient surgical centernew text begin , or critical access dental providernew text end ;
(4) building, construction, or reconstruction materials purchased by a contractor or a subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed maximum price covering both labor and materials for use in the construction, alteration, or repair of a hospital deleted text begin ordeleted text end new text begin , new text end outpatient surgical centernew text begin , or critical access dental providernew text end ; or
(5) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11.
deleted text begin (d)deleted text end new text begin (e)new text end A limited liability company also qualifies for exemption under this subdivision if (1) it consists of a sole member that would qualify for the exemption, and (2) the items purchased qualify for the exemption.
deleted text begin (e)deleted text end new text begin (f)new text end An entity that contains both a hospital and a nonprofit unit may claim this exemption on purchases made for both the hospital and nonprofit unit provided that:
(1) the nonprofit unit would have qualified for exemption under subdivision 4; and
(2) the items purchased would have qualified for the exemption.
new text begin This section is effective retroactively for sales and purchases made after June 30, 2007. Purchasers may apply for a refund of tax paid for qualifying purchases under this subdivision made after June 30, 2007, and before July 1, 2013, in the manner provided in Minnesota Statutes, section 297A.75. Notwithstanding limitations on claims for refunds under Minnesota Statutes, section 297A.40, claims may be filed with the commissioner until June 30, 2014. new text end
new text begin (a) Sales of lodging, prepared food, candy, soft drinks, and alcoholic beverages at noncatered events between an established religious order and an affiliated institution of higher education are exempt. new text end
new text begin (b) For purposes of this subdivision, "established religious order" means an organization directly or indirectly under the control or supervision of a church or convention or association of churches, where members of the organization: new text end
new text begin (1) normally live together as part of a community; new text end
new text begin (2) make long-term commitments to live under a strict set of moral and spiritual rules; and new text end
new text begin (3) work or engage full time in a combination of prayer, religious study, church reform or renewal, or other religious, educational, or charitable goals of the organization. new text end
new text begin (c) For purposes of this subdivision, an institution of higher education is "affiliated" with an established religious order if members of the religious order are represented on the governing board of the institution of higher education and the two organization share campus space and common facilities. new text end
new text begin This section is effective retroactively for sales and purchases made after June 30, 2012. new text end
(a) The following sales by the specified organizations for fund-raising purposes are exempt, subject to the limitations listed in paragraph (b):
(1) all sales made by a nonprofit organization that exists solely for the purpose of providing educational or social activities for young people primarily age 18 and under;
(2) all sales made by an organization that is a senior citizen group or association of groups if (i) in general it limits membership to persons age 55 or older; (ii) it is organized and operated exclusively for pleasure, recreation, and other nonprofit purposes; and (iii) no part of its net earnings inures to the benefit of any private shareholders;
(3) the sale or use of tickets or admissions to a golf tournament held in Minnesota if the beneficiary of the tournament's net proceeds qualifies as a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code; and
(4) sales of candy sold for fund-raising purposes by a nonprofit organization that provides educational and social activities primarily for young people age 18 and under.
(b) The exemptions listed in paragraph (a) are limited in the following manner:
(1) the exemption under paragraph (a), clauses (1) and (2), applies only if the gross annual receipts of the organization from fund-raising do not exceed $10,000; and
(2) the exemption under paragraph (a), clause (1), does not apply if the sales are derived from admission charges or from activities for which the money must be deposited with the school district treasurer under section 123B.49, subdivision 2, or be recorded in the same manner as other revenues or expenditures of the school district under section 123B.49, subdivision 4.
(c) Sales of tangible personal propertynew text begin and servicesnew text end are exempt if the entire proceeds, less the necessary expenses for obtaining the propertynew text begin or servicesnew text end , will be contributed to a registered combined charitable organization described in section 43A.50, to be used exclusively for charitable, religious, or educational purposes, and the registered combined charitable organization has given its written permission for the sale. Sales that occur over a period of more than 24 days per year are not exempt under this paragraph.
(d) For purposes of this subdivision, a club, association, or other organization of elementary or secondary school students organized for the purpose of carrying on sports, educational, or other extracurricular activities is a separate organization from the school district or school for purposes of applying the $10,000 limit.
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
(a) Sales of tangible personal propertynew text begin or servicesnew text end 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 five 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.
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
new text begin (a) All sales, except those listed in paragraph (b), to a nursing home licensed under section 144A.02 or a boarding care home certified as a nursing facility under title 19 of the Social Security Act are exempt if the facility: new text end
new text begin (1) is exempt from federal income taxation pursuant to section 501(c)(3) of the Internal Revenue Code; and new text end
new text begin (2) is certified to participate in the medical assistance program under title 19 of the Social Security Act, or certifies to the commissioner that it does not discharge residents due to the inability to pay. new text end
new text begin (b) This exemption does not apply to the following sales: new text end
new text begin (1) building, construction, or reconstruction materials purchased by a contractor or a subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed maximum price covering both labor and materials for use in the construction, alteration, or repair of a building or facility; new text end
new text begin (2) construction materials purchased by tax-exempt entities or their contractors to be used in constructing buildings or facilities that will not be used principally by the tax-exempt entities; new text end
new text begin (3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67, subdivision 2; and new text end
new text begin (4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except as provided in paragraph (c). new text end
new text begin (c) This exemption applies to the leasing of a motor vehicle as defined in section 297B.01, subdivision 11, only if the vehicle is: new text end
new text begin (1) a truck, as defined in section 168.002; a bus, as defined in section 168.002; or a passenger automobile, as defined in section 168.002, if the automobile is designed and used for carrying more than nine persons including the driver; and new text end
new text begin (2) intended to be used primarily to transport tangible personal property or residents of the nursing home or boarding care home. new text end
new text begin This section is effective for sales and purchases made after June 30, 2013. new text end
new text begin (a) Materials and supplies used or consumed in, capital equipment incorporated into, and privately owned infrastructure in support of the construction, improvement, or expansion of a biopharmaceutical manufacturing facility in the state are exempt if the following criteria are met: new text end
new text begin (1) the facility is used for the manufacturing of biologics; new text end
new text begin (2) the total capital investment made at the facility exceeds $50,000,000; and new text end
new text begin (3) the facility creates and maintains at least 190 full-time equivalent positions at the facility. These positions must be new jobs in Minnesota and not the result of relocating jobs that currently exist in Minnesota. new text end
new text begin (b) The tax must be imposed and collected as if the rate under section 297A.62 applied, and refunded in the manner provided in section 297A.75. new text end
new text begin (c) To be eligible for a refund, the owner of the biopharmaceutical manufacturing facility must: new text end
new text begin (1) initially apply to the Department of Employment and Economic Development for certification no later than one year from the final completion date of construction, improvement, or expansion of the facility; and new text end
new text begin (2) for each year that the owner of the biopharmaceutical manufacturing facility applies for a refund, the owner must have received written certification from the Department of Employment and Economic Development that the facility has met the criteria of paragraph (a). new text end
new text begin (d) The refund is to be paid annually at a rate of 25 percent of the total allowable refund payable to date, with the commissioner making annual payments of the remaining refund until all of the refund has been paid. new text end
new text begin (e) For purposes of this subdivision, "biopharmaceutical" and "biologics" are interchangeable and mean medical drugs or medicinal preparations produced using technology that uses biological systems, living organisms or derivatives of living organisms, to make or modify products or processes for specific use. The medical drugs or medicinal preparations include but are not limited to proteins, antibodies, nucleic acids, and vaccines. new text end
new text begin This section is effective retroactively to capital investments made and jobs created after December 31, 2012, and effective retroactively for sales and purchases made after December 31, 2012, and before July 1, 2019. new text end
new text begin Materials and supplies used or consumed in, and equipment incorporated into, the construction or improvement of a research and development facility that has laboratory space of at least 400,000 square feet and utilizes both high-intensity and low-intensity laboratories, provided that the project has a total construction cost of at least $140,000,000 within a 24-month period. The tax on purchases imposed under this subdivision must be imposed and collected as if the rate under section 297A.62 applied and then refunded in the manner provided in section 297A.75. new text end
new text begin This section is effective for sales and purchases made after June 30, 2013, and before September 1, 2015. new text end
new text begin (a) Materials and supplies used or consumed in, capital equipment incorporated into, fixtures installed in, and privately owned infrastructure in support of the construction, improvement, or expansion of an industrial measurement manufacturing and controls facility are exempt if: new text end
new text begin (1) the total capital investment made at the facility is at least $60,000,000; new text end
new text begin (2) the facility employs at least 250 full-time equivalent employees that are not employees currently employed by the company in the state; and new text end
new text begin (3) the Department of Employment and Economic Development determines that the expansion, remodeling, or improvement of the facility has a significant impact on the state economy. new text end
new text begin (b) The tax must be imposed and collected as if the rate under section 297A.62 applied and refunded in the manner provided in section 297A.75, only after the following criteria are met: new text end
new text begin (1) a refund may not be issued until the owner of the facility has received certification from the Department of Employment and Economic Development that the company meets the requirements in paragraph (a); and new text end
new text begin (2) to receive the refund, the owner of the industrial measurement manufacturing and controls facility must initially apply to the Department of Employment and Economic Development for certification no later than one year from the final completion date of construction, improvement, or expansion of the industrial measurement manufacturing and controls facility. new text end
new text begin This section is effective for sales and purchases made after June 30, 2013, and before December 31, 2015. new text end
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:
deleted text begin (1) capital equipment exempt under section 297A.68, subdivision 5; deleted text end
deleted text begin (2)deleted text end new text begin (1)new text end building materials for an agricultural processing facility exempt under section 297A.71, subdivision 13;
deleted text begin (3)deleted text end new text begin (2)new text end building materials for mineral production facilities exempt under section 297A.71, subdivision 14;
deleted text begin (4)deleted text end new text begin (3)new text end building materials for correctional facilities under section 297A.71, subdivision 3;
deleted text begin (5)deleted text end new text begin (4)new text end building materials used in a residence for disabled veterans exempt under section 297A.71, subdivision 11;
deleted text begin (6)deleted text end new text begin (5)new text end elevators and building materials exempt under section 297A.71, subdivision 12;
deleted text begin (7)deleted text end new text begin (6)new text end building materials for the Long Lake Conservation Center exempt under section 297A.71, subdivision 17;
deleted text begin (8)deleted text end new text begin (7)new text end materials and supplies for qualified low-income housing under section 297A.71, subdivision 23;
deleted text begin (9)deleted text end new text begin (8)new text end materials, supplies, and equipment for municipal electric utility facilities under section 297A.71, subdivision 35;
deleted text begin (10)deleted text end new text begin (9)new text end 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;
deleted text begin (11)deleted text end new text begin (10)new text end commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph (a), clause (10);
deleted text begin (12)deleted text end new text begin (11)new text end materials, supplies, and equipment for construction or improvement of projects and facilities under section 297A.71, subdivision 40;
deleted text begin (13)deleted text end new text begin (12)new text end materials, supplies, and equipment for construction or improvement of a meat processing facility exempt under section 297A.71, subdivision 41;
deleted text begin (14)deleted text end new text begin (13)new text end materials, supplies, and equipment for construction, improvement, or expansion ofnew text begin :new text end
new text begin (i) new text end an aerospace defense manufacturing facility exempt under section 297A.71, subdivision 42;
new text begin (ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 45; new text end
new text begin (iii) a research and development facility exempt under section 297A.71, subdivision 4b; and new text end
new text begin (iv) an industrial measurement manufacturing and controls facility exempt under section 297A.71, subdivision 47; new text end
deleted text begin (15)deleted text end new text begin (14)new text end enterprise information technology equipment and computer software for use in a qualified data center exempt under section 297A.68, subdivision 42; deleted text begin anddeleted text end
deleted text begin (16)deleted text end new text begin (15)new text end materials, supplies, and equipment for qualifying capital projects under section 297A.71, subdivision 44new text begin ;new text end
new text begin (16) items purchased for use in providing critical access dental services exempt under section 297A.70, subdivision 7, paragraph (c); and new text end
new text begin (17) items and services purchased under a business subsidy agreement for use or consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 49new text end .
new text begin The change to clause (1) is effective for sales and purchases made after August 31, 2014. The changes in clauses (13), (16), and (17), are effective the day following final enactment. new text end
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)deleted text begin to (3)deleted text end new text begin , (2), and (16)new text end , the applicant must be the purchaser;
(2) for subdivision 1, clauses deleted text begin (4)deleted text end new text begin (3)new text end and deleted text begin (7)deleted text end new text begin (6)new text end , the applicant must be the governmental subdivision;
(3) for subdivision 1, clause deleted text begin (5)deleted text end new text begin (4)new text end , the applicant must be the recipient of the benefits provided in United States Code, title 38, chapter 21;
(4) for subdivision 1, clause deleted text begin (6)deleted text end new text begin (5)new text end , the applicant must be the owner of the homestead property;
(5) for subdivision 1, clause deleted text begin (8)deleted text end new text begin (7)new text end , the owner of the qualified low-income housing project;
(6) for subdivision 1, clause deleted text begin (9)deleted text end new text begin (8)new text end , the applicant must be a municipal electric utility or a joint venture of municipal electric utilities;
(7) for subdivision 1, clauses deleted text begin (10),deleted text end new text begin (9), (12),new text end (13), (14)deleted text begin , and (15)deleted text end new text begin and (17)new text end , the owner of the qualifying business; and
(8) for subdivision 1, clauses new text begin (10), new text end (11), deleted text begin (12),deleted text end and deleted text begin (16)deleted text end new text begin (15)new text end , the applicant must be the governmental entity that owns or contracts for the project or facility.
new text begin This section is effective the day following final enactment. new text end
(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, deleted text begin clause (4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14),deleted text end new text begin clauses (3) tonew text end (15), or deleted text begin (16)deleted text end new text begin (17)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.
(c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71, subdivision 40, must not be filed until after June 30, 2009.
new text begin This section is effective the day following final enactment. new text end
(a) A political subdivision of this state may impose a general sales tax (1) under section 297A.992, (2) under section 297A.993, (3) if permitted by special law, or (4) if the political subdivision enacted and imposed the tax before January 1, 1982, and its predecessor provision.
(b) This section governs the imposition of a general sales tax by the political subdivision. The provisions of this section preempt the provisions of any special law:
(1) enacted before June 2, 1997, or
(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law provision from this section's rules by reference.
(c) This section does not apply to or preempt a sales tax on motor vehicles or a special excise tax on motor vehicles.
(d) A political subdivision may not advertise or expend funds for the promotion of a referendum to support imposing a local option sales tax.
new text begin (e) Notwithstanding paragraph (d), new text end a political subdivision may deleted text begin onlydeleted text end expend funds tonew text begin :new text end
new text begin (1) new text end conduct the referendumdeleted text begin .deleted text end new text begin ;new text end
new text begin (2) disseminate information included in the resolution adopted under subdivision 2; new text end
new text begin (3) provide notice of, and conduct public forums at which proponents and opponents on the merits of the referendum are given equal time to express their opinions on the merits of the referendum; new text end
new text begin (4) provide facts and data on the impact of the proposed sales tax on consumer purchases; and new text end
new text begin (5) provide facts and data related to the programs and projects to be funded with the sales tax. new text end
new text begin This section is effective the day following final enactment. new text end
Revenues received from the tax authorized by subdivision 1 may only be used by the city to pay the cost of collecting the tax, andnew text begin , except as provided in paragraph (e),new text end to pay for the following projects or to secure or pay any principal, premium, or interest on bonds issued in accordance with subdivision 3 for the following projects.
(a) To pay all or a portion of the capital expenses of construction, equipment and acquisition costs for the expansion and remodeling of the St. Paul Civic Center complex, including the demolition of the existing arena and the construction and equipping of a new arena.
(b) Except as provided in paragraphs (e) and (f), the remainder of the funds must be spent for:
(1) capital projects to further residential, cultural, commercial, and economic development in both downtown St. Paul and St. Paul neighborhoods; and
(2) capital and operating expenses of cultural organizations in the city, provided that the amount spent under this clause must equal ten percent of the total amount spent under this paragraph in any year.
(c) The amount apportioned under paragraph (b) shall be no less than 60 percent of the revenues derived from the tax each year, except to the extent that a portion of that amount is required to pay debt service on (1) bonds issued for the purposes of paragraph (a) prior to March 1, 1998; or (2) bonds issued for the purposes of paragraph (a) after March 1, 1998, but only if the city council determines that 40 percent of the revenues derived from the tax together with other revenues pledged to the payment of the bonds, including the proceeds of definitive bonds, is expected to exceed the annual debt service on the bonds.
(d) If in any year more than 40 percent of the revenue derived from the tax authorized by subdivision 1 is used to pay debt service on the bonds issued for the purposes of paragraph (a) and to fund a reserve for the bonds, the amount of the debt service payment that exceeds 40 percent of the revenue must be determined for that year. In any year when 40 percent of the revenue produced by the sales tax exceeds the amount required to pay debt service on the bonds and to fund a reserve for the bonds under paragraph (a), the amount of the excess must be made available for capital projects to further residential, cultural, commercial, and economic development in the neighborhoods and downtown until the cumulative amounts determined for all years under the preceding sentence have been made available under this sentence. The amount made available as reimbursement in the preceding sentence is not included in the 60 percent determined under paragraph (c).
(e) deleted text begin In each of calendar years 2006 to 2014, revenue not to exceed $3,500,000 may be used to pay the principal of bonds issued for capital projects of the city. After December 31, 2014, revenue from the tax imposed under subdivision 1 may not be used for this purpose.deleted text end new text begin If the amount necessary to meet obligations under paragraphs (a) and (d) are less than 40 percent of the revenue from the tax in any year, the city may place the difference between 40 percent of the revenue and the amounts allocated under paragraphs (a) and (d) in an economic development fund to be used for any economic development purposes.new text end
(f) By January 15 of each year, the mayor and the city council must report to the legislature on the use of sales tax revenues during the preceding one-year period.
new text begin This section is effective the day after compliance by the governing body of the city of St. Paul with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end
The authority granted by subdivision 1 to the city to impose a sales tax shall expire on December 31, deleted text begin 2030deleted text end new text begin 2042new text end , or at an earlier time as the city shall, by ordinance, determine. Any funds remaining after completion of projects approved under subdivision 2, paragraph (a) and retirement or redemption of any bonds or other obligations may be placed in the general fund of the city.
new text begin This section is effective the day after compliance by the governing body of the city of St. Paul with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end
Notwithstanding Minnesota Statutes, section 469.190 or 477A.016, or any other law, the city of Rochester may impose an additional tax of one percent on the gross receipts from the furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it for a continuous period of 30 days or more.
Notwithstanding Minnesota Statutes, section 469.190 or 477A.016, or any other law, and in addition to the tax authorized by subdivision 1, the city of Rochester may impose an additional tax of deleted text begin onedeleted text end new text begin threenew text end percent on the gross receipts from the furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it for a continuous period of 30 days or more only upon the approval of the city governing body of a total financial package for the project.
(a) The gross proceeds from the tax imposed under subdivision 1 must be used by the city to fund a local convention or tourism bureau for the purpose of marketing and promoting the city as a tourist or convention center.
(b) The gross proceeds from the deleted text begin onedeleted text end new text begin threenew text end percent tax imposed under subdivision 1a shall be used to pay for (1) new text begin design, new text end construction, renovation, improvement, and expansion of the Mayo Civic Centernew text begin Complexnew text end and related new text begin infrastructure, including but not limited to, new text end skyway access, lighting, parking, or landscaping; and (2) for payment of any principal, interest, or premium on bonds issued to finance the construction, renovation, improvement, and expansion of the Mayo Civic Center Complex.
The city of Rochester may issue, without an election, general obligation bonds of the city, in one or more series, in the aggregate principal amount not to exceed deleted text begin $43,500,000deleted text end new text begin $50,000,000new text end , to pay for capital and administrative costs for the design, construction, renovation, improvement, and expansion of the Mayo Civic Center Complex, and related new text begin infrastructure, including but not limited to, new text end skyway, access, lighting, parking, and landscaping. The city may pledge the lodging tax authorized by subdivision 1a deleted text begin and the food and beverage tax authorized under Laws 2009, chapter 88, article 4, section 23,deleted text end to the payment of the bonds. The debt represented by the bonds is not included in computing any debt limitations applicable to the city, and the levy of taxes required by Minnesota Statutes, section 475.61, to pay the principal of and interest on the bonds is not subject to any levy limitation or included in computing or applying any levy limitation applicable to the city.
deleted text begin The authority of the city to impose a tax under subdivision 1a shall expire when the principal and interest on any bonds or other obligations issued prior to December 31, 2014, to finance the construction, renovation, improvement, and expansion of the Mayo Civic Center Complex and related skyway access, lighting, parking, or landscaping have been paid, including any bonds issued to refund such bonds, or at an earlier time as the city shall, by ordinance, determine. Any funds remaining after completion of the project and retirement or redemption of the bonds shall be placed in the general fund of the city. deleted text end new text begin The city may, by ordinance, repeal the tax provided that: new text end
new text begin (1) the revenues raised before the repeal are sufficient to meet all bond or other obligations backed by revenues of the tax; and new text end
new text begin (2) the repeal date meets the requirements of section 297A.99, subdivision 12. new text end
new text begin This section is effective the day after the governing body of the city of Rochester and its chief fiscal officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end
(a) Revenues received from the tax authorized by subdivision 1 by the city of St. Cloud must be used for the cost of collecting and administering the tax and to pay all or part of the capital or administrative costs of the development, acquisition, construction, improvement, and securing and paying debt service on bonds or other obligations issued to finance the following regional projects as approved by the voters and specifically detailed in the referendum authorizing the taxnew text begin or extending the taxnew text end :
(1) St. Cloud Regional Airport;
(2) regional transportation improvements;
(3) new text begin regional new text end community and aquatics centers;
(4) regional public libraries; and
(5) acquisition and improvement of regional park land and open space.
(b) Revenues received from the tax authorized by subdivision 1 by the cities of St. Joseph, Waite Park, Sartell, Sauk Rapids, and St. Augusta must be used for the cost of collecting and administering the tax and to pay all or part of the capital or administrative costs of the development, acquisition, construction, improvement, and securing and paying debt service on bonds or other obligations issued to fund the projects specifically approved by the voters at the referendum authorizing the taxnew text begin or extending the taxnew text end . The portion of revenues from the city going to fund the regional airport or regional library located in the city of St. Cloud will be as required under the applicable joint powers agreement.
(c) The use of revenues received from the taxes authorized in subdivision 1 for projects allowed under paragraphs (a) and (b) are limited to the amount authorized for each project under the enabling referendum.
new text begin This section is effective for the city that approves it the day after compliance by the governing body of each city with Minnesota Statutes, section 645.021, subdivision 3. new text end
The tax imposed in the cities of St. Joseph, St. Cloud, St. Augusta, Sartell, Sauk Rapids, and Waite Park under subdivision 1 expires when the city council determines that sufficient funds have been collected from the tax to retire or redeem the bonds and obligations authorized under subdivision 2, paragraph (a), but no later than December 31, 2018.new text begin Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, paragraphs (a), (c), and (d), a city may extend the tax imposed under subdivision 1 through December 31, 2038, if approved by voters of the city no later than November 7, 2017, at either a general election or at a special election held on a first Tuesday after a first Monday in November.new text end
new text begin This section is effective for the city that approves it the day after compliance by the governing body of each city with Minnesota Statutes, section 645.021, subdivision 3. new text end
Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, paragraph (b), the proceeds of the tax imposed under this section shall be used to pay for the costs of new text begin improvements to the Sportsman Park/Ballfields, Riverside Park, Lions Park/Pavilion, Cedar South Park also known as Eldorado Park, and Spring Street Park; improvements to and extension of the River County Bike Trail; new text end acquisitiondeleted text begin ,deleted text end new text begin andnew text end constructiondeleted text begin , improvement, and development of regional parks, bicycle trails, park land, open space, anddeleted text end new text begin of a new text end pedestrian deleted text begin walkways, as described in the city improvement plan adopted by the city council by resolution on December 12, 2006, anddeleted text end new text begin walkway over Interstate 94 and State Highway 24; and the acquisition ofnew text end land and new text begin construction of new text end buildings for a community and recreation center. The total amount of revenues from the taxes in subdivisions 1 and 2 that may be used to fund these projects is $12,000,000 plus any associated bond costs.
new text begin This section is effective the day after compliance by the governing body of the city of Clearwater with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end
The revenues derived from the tax imposed under subdivision 5 must be used by the city of Marshall to pay the costs of collecting and administering the food and beverages tax, to pay all or part of the operating costs of the new and existing facilities of the Minnesota Emergency Response and Industry Training Center, including the payment of debt service on bonds issued under subdivision 2, and to pay all or part of the operating costs of the facilities of the Southwest Minnesota Regional Amateur Sports Center, including the payment of debt service on bonds issued under subdivision 2.new text begin Authorized expenses for each organization include, but are not limited to, acquiring property; predesign; design; and paying construction, furnishing, and equipment costs related to these facilities and paying debt service on bonds or other obligations issued by the city.new text end
new text begin This section is effective the day following final enactment. new text end
new text begin (a) Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of Marshall may approve Laws 2010, chapter 389, article 5, section 6, as amended by Laws 201l, First Special Session chapter 7, article 4, section 9, 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 pursuant to the approval of the voters on November 6, 2012, and otherwise in accordance with Laws 2010, chapter 389, article 5, section 6, as amended by Laws 201l, First Special Session chapter 7, article 4, section 9, are validated. new text end
new text begin (b) Notwithstanding the time limit on the imposition of tax under Laws 2010, chapter 389, article 5, section 6, subdivision 1, as amended by Laws 201l, First Special Session chapter 7, article 4, section 9, 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 This section is effective the day following final enactment. new text end
new text begin Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of Proctor may approve, by resolution, Laws 2008, chapter 366, article 7, section 13, and Laws 2010, chapter 389, article 5, sections 1 and 2, and file its approval with the secretary of state by January 1, 2014. If approved under this paragraph, actions undertaken by the city pursuant to the approval of the voters on November 2, 2010, and otherwise in accordance with those laws are validated. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin (a) new text end new text begin Minnesota Statutes 2012, sections 297A.61, subdivision 27; and 297A.68, subdivision 35, new text end new text begin are repealed. new text end
new text begin (b) new text end new text begin Laws 2009, chapter 88, article 4, section 23, as amended by Laws 2010, chapter 389, article 5, section 4, new text end new text begin is repealed. new text end
new text begin Paragraph (a) is effective for sales and purchases made after June 30, 2013. Paragraph (b) is effective the day following final enactment. new text end
Notwithstanding section 469.068, the Bloomington port authority need not require competitive bidding with respect to a structured parking facilitynew text begin or other public improvementsnew text end constructed in conjunction with, and directly above or below, or adjacent and integrally related to, a development and financed with the proceeds of tax increment deleted text begin ordeleted text end new text begin ,new text end revenue bondsnew text begin , or other funds of the port authority and the city of Bloomingtonnew text end .
new text begin This section is effective upon compliance of the governing body of the city of Bloomington with the requirements of Minnesota Statutes, section 645.021, subdivision 3. new text end
new text begin (a) In addition to the tax reductions authorized in subdivisions 12 to 18, the commissioner shall allocate $750,000 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 made under this subdivision may be used for tax reductions under section 469.171, 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. The city alternatively may elect to use any portion of the allocation under this paragraph for tax reductions under section 469.1732 or 469.1734. new text end
new text begin (b) The commissioner shall allocate $750,000 for tax reductions under section 469.1732 or 469.1734 to cities with border city enterprise zones located on the western border of the state. The commissioner shall allocate this amount among the cities on a per capita basis. The city alternatively may elect to use any portion of the allocation provided in this paragraph for tax reductions under section 469.171. new text end
new text begin This section is effective July 1, 2013. new text end
(a) Revenue derived from tax increment from an economic development district may not be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and facilities (determined on the basis of square footage) are used for a purpose other than:
(1) the manufacturing or production of tangible personal property, including processing resulting in the change in condition of the property;
(2) warehousing, storage, and distribution of tangible personal property, excluding retail sales;
(3) research and development related to the activities listed in clause (1) or (2);
(4) telemarketing if that activity is the exclusive use of the property;
(5) tourism facilities;new text begin ornew text end
(6) deleted text begin qualified border retail facilities; ordeleted text end
deleted text begin (7)deleted text end space necessary for and related to the activities listed in clauses (1) to deleted text begin (6)deleted text end new text begin (5)new text end .
(b) Notwithstanding the provisions of this subdivision, revenues derived from tax increment from an economic development district may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000 square feet of any separately owned commercial facility located within the municipal jurisdiction of a small city, if the revenues derived from increments are spent only to assist the facility directly or for administrative expenses, the assistance is necessary to develop the facility, and all of the increments, except those for administrative expenses, are spent only for activities within the district.
(c) A city is a small city for purposes of this subdivision if the city was a small city in the year in which the request for certification was made and applies for the rest of the duration of the district, regardless of whether the city qualifies or ceases to qualify as a small city.
deleted text begin (d) Notwithstanding the requirements of paragraph (a) and the finding requirements of section 469.174, subdivision 12, tax increments from an economic development district may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities, if all the following conditions are met: deleted text end
deleted text begin (1) the municipality finds that the project will create or retain jobs in this state, including construction jobs, and that construction of the project would not have commenced before July 1, 2012, without the authority providing assistance under the provisions of this paragraph; deleted text end
deleted text begin (2) construction of the project begins no later than July 1, 2012; deleted text end
deleted text begin (3) the request for certification of the district is made no later than June 30, 2012; and deleted text end
deleted text begin (4) for development of housing under this paragraph, the construction must begin before January 1, 2012. deleted text end
deleted text begin The provisions of this paragraph may not be used to assist housing that is developed to qualify under section 469.1761, subdivision 2 or 3, or similar requirements of other law, if construction of the project begins later than July 1, 2011. deleted text end
new text begin This section is effective for districts for which the request for certification was made after June 30, 2012. new text end
(a) Tax increments may not be used to circumvent existing levy limit law.
(b) No tax increment from any district may be used for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure.
deleted text begin (c)(1) Tax increments may not be used to pay for the cost of public improvements, equipment, or other items, if: deleted text end
deleted text begin (i) the improvements, equipment, or other items are located outside of the area of the tax increment financing district from which the increments were collected; and deleted text end
deleted text begin (ii) the improvements, equipment, or items that (A) primarily serve a decorative or aesthetic purpose, or (B) serve a functional purpose, but their cost is increased by more than 100 percent as a result of the selection of materials, design, or type as compared with more commonly used materials, designs, or types for similar improvements, equipment, or items. deleted text end
deleted text begin (2) The provisions of this paragraph do not apply to expenditures related to the rehabilitation of historic structures that are: deleted text end
deleted text begin (i) individually listed on the National Register of Historic Places; or deleted text end
deleted text begin (ii) a contributing element to a historic district listed on the National Register of Historic Places. deleted text end
new text begin This section is effective the day following final enactment for all tax increment financing districts, regardless of when the request for certification was made, but applies only to amounts spent after final enactment. new text end
(a) If, after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to section 469.177, no demolition, rehabilitation, or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel, and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation, or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the county auditor that the activity has commenced, and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street.
(b) For districts which were certified on or after January 1, 2005, and before April 20, 2009, the four-year period under paragraph (a) is deleted text begin increased to six yearsdeleted text end new text begin deemed to end on December 31, 2016new text end .
new text begin This section is effective the day following final enactment and applies to districts certified on or after January 1, 2005, and before April 20, 2009. new text end
At the time of the initial certification of the original net tax capacity for a tax increment financing district or a subdistrict, the county auditor shall certify the original local tax rate that applies to the district or subdistrict. The original local tax rate is the sum of all the local tax ratesnew text begin , excluding that portion of the school rate attributable to the general education levy under section 126C.13,new text end that apply to a property in the district or subdistrict. The local tax rate to be certified is the rate in effect for the same taxes payable year applicable to the tax capacity values certified as the district's or subdistrict's original tax capacity. The resulting tax capacity rate is the original local tax rate for the life of the district or subdistrict.
new text begin This section is effective for districts for which the request for certification is made after April 15, 2013. new text end
new text begin (a) Upon approval by the municipality, by resolution, the authority may elect to reduce the original net tax capacity of a qualified district by the amount of the tax capacity attributable to the market value exclusion under section 273.13, subdivision 35, for taxes payable in the year preceding the election. The amount of the reduction may not reduce the original net tax capacity below zero. new text end
new text begin (b) For purposes of this subdivision, a qualified district means a tax increment financing district that satisfies the following conditions: new text end
new text begin (1) for taxes payable in 2011, the authority received a homestead market value credit reimbursement under section 273.1384 for the district of $10,000 or more; new text end
new text begin (2) for taxes payable in 2013, the reduction in captured tax capacity resulting from the market value exclusion for the district was equal to or greater than 1.75 percent of the district's captured tax capacity; and new text end
new text begin (3) either (i) the authority is permitted to expend increments on activities under the provisions of section 469.1763, subdivision 3, or an equivalent provision of special law on July 1, 2013, or (ii) the district's tax increments received for taxes payable in 2012 exceeded the amount of debt service payments due during calendar year 2012 on bonds issued under section 469.178 to which the district's increments are pledged. new text end
new text begin The calculation of the amount under clause (2) must reflect any adjustments to original net tax capacity made under subdivision 1, paragraphs (d) and (e), for the homestead market value exclusion. new text end
new text begin (c) The authority must notify the county auditor of its election under this section no later than July 1, 2014. Notifications made by July 1, 2013, are effective beginning for taxes payable in 2014, and notifications made after July 1, 2013, are effective beginning for taxes payable in 2015. new text end
new text begin This section is effective the day following final enactment and applies to all tax increment financing districts regardless of when the request for certification was made. new text end
new text begin (a) For any tax increment financing district that satisfies the requirements of paragraph (b), the original net tax capacity must be reduced by the full amount of the original net tax capacity or $20,000, whichever is less. new text end
new text begin (b) A tax increment financing district qualifies under this subdivision if it satisfies the following conditions: new text end
new text begin (1) the district was certified after January 1, 2011, and before January 1, 2012; new text end
new text begin (2) for assessment year 2012, at least 75 percent of the tax capacity of the district is class 4d property; and new text end
new text begin (3) for assessment year 2012, the average estimated market value is over $115,000 per housing unit for the portion of the property that is class 4d. new text end
new text begin (c) An authority or a property owner within a tax increment financing district must notify the county assessor of a district that qualifies under this subdivision by July 1, 2013. new text end
new text begin (d) This subdivision expires on December 31, 2021. new text end
new text begin This section is effective beginning for taxes payable in 2014. new text end
(a) If the amount of tax paid on captured net tax capacity exceeds the amount of tax increment, the county auditor shall distribute the excessnew text begin , except increment attributable to the general education levy, new text end to the municipality, county, and school district as follows: each governmental unit's share of the excess equals
(1) the total amount of the excess for the tax increment financing district, multiplied by
(2) a fraction, the numerator of which is the current local tax rate of the governmental unit less the governmental unit's local tax rate for the year the original local tax rate for the district was certified (in no case may this amount be less than zero) and the denominator of which is the sum of the numerators for the municipality, county, and school district.
If the entire increase in the local tax rate is attributable to a taxing district, other than the municipality, county, or school district, then the excess must be distributed to the municipality, county, and school district in proportion to their respective local tax rates.
(b) The amounts distributed shall be deducted in computing the levy limits of the taxing district for the succeeding taxable year.
(c) In the case of distributions to a school district, the county auditor shall report amounts distributed to the commissioner of education in the same manner as provided for excess increments under section 469.176, subdivision 2, and the distribution shall be deducted from the school district's state aid payments and levy limitation according to section 127A.49, subdivision 3.
new text begin (d) The amount of taxes attributable to imposing the general education levy under section 126C.13 must be returned to the school district within which the tax increment financing district is located. new text end
new text begin This section is effective for districts for which the request for certification is made after April 15, 2013. new text end
new text begin (a) When computing the net tax capacity under section 473F.05, the Hennepin County auditor shall exclude the captured tax capacity of Tax Increment Financing Districts No. 1-C and No. 1-G in the city of Bloomington. new text end
new text begin (b) Notwithstanding the provisions of subdivision 2, paragraph (a), the commercial-industrial contribution percentage for the city of Bloomington is the contribution net tax capacity divided by the total net tax capacity of commercial-industrial property in the city, excluding any commercial-industrial property that is captured tax capacity of Tax Increment Financing Districts No. 1-C and No. 1-G. new text end
new text begin (c) The property taxes to be paid on commercial-industrial tax capacity that is included in the captured tax capacity of Tax Increment Financing Districts No. 1-C and No. 1-G in the city of Bloomington must be determined as described in subdivision 6, except that the portion of the tax that is based on the areawide tax rate is to be treated as tax increment under section 469.176. new text end
new text begin (d) The provisions of this subdivision take effect only if the clerk of the city of Bloomington certifies to the Hennepin County auditor that the city has entered into a binding written agreement with the Metropolitan Council to repair and restore, or to replace, the old Cedar Avenue bridge for use by bicycle commuters and recreational users. new text end
new text begin (e) This subdivision expires on the earliest of the following dates: new text end
new text begin (1) when the tax increment financing districts have been decertified in 2024 or 2035, as provided by section 22, subdivision 2 or 4; or new text end
new text begin (2) on January 1, 2014, if the city clerk fails to make the certification provided in paragraph (d) or if the city fails to file its local approval of section 23 with the secretary of state by December 31, 2013. new text end
new text begin This section is effective beginning for property taxes payable in 2014. new text end
new text begin (a) new text end The requirements 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, are increased to a deleted text begin ten-yeardeleted text end new text begin 15-yearnew text end period for the Port Authority of the City of Bloomington's Tax Increment Financing District No. 1-I, Bloomington Central Station.
new text begin (b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any other law to the contrary, the city of Bloomington and its port authority may extend the duration limits of the district for a period through December 31, 2039. new text end
new text begin (c) Effective for taxes payable in 2014, tax increment for the district must be computed using the current local tax rate, notwithstanding the provisions of Minnesota Statutes, section 469.177, subdivision 1a. new text end
new text begin Paragraphs (a) and (c) are effective upon compliance by the governing body of the city of Bloomington with the requirements of Minnesota Statutes, section 645.021, subdivision 3. Paragraph (b) is effective upon compliance by the governing bodies of the city of Bloomington, Hennepin County, and Independent School District No. 271 with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, subdivision 3. new text end
deleted text begin (a) The provisions of this section apply to redevelopment tax increment financing districts created by the Housing and Redevelopment Authority in and for the city of Oakdale in the areas comprised of the parcels with the following parcel identification numbers: (1) 3102921320053; 3102921320054; 3102921320055; 3102921320056; 3102921320057; 3102921320058; 3102921320062; 3102921320063; 3102921320059; 3102921320060; 3102921320061; 3102921330005; and 3102921330004; and (2) 2902921330001 and 2902921330005. deleted text end
deleted text begin (b) For a district subject to this section, the Housing and Redevelopment Authority may, when requesting certification of the original tax capacity of the district under Minnesota Statutes, section 469.177, elect to have the original tax capacity of the district be certified as the tax capacity of the land. deleted text end
deleted text begin (c) The authority to request certification of a district under this section expires on July 1, 2013. deleted text end
new text begin (a) Parcel numbers 3102921320054, 3102921320055, 3102921320056, 3102921320057, 3102921320061, and 3102921330004 are deemed to meet the requirements of Minnesota Statutes, section 469.174, subdivision 10, paragraph (d), notwithstanding any contrary provisions of that paragraph, if the following conditions are met: new text end
new text begin (1) a building located on any part of each of the specified parcels was demolished after the Housing and Redevelopment Authority for the city of Oakdale adopted a resolution under Minnesota Statutes, section 469.174, subdivision 10, paragraph (d), clause (3); new text end
new text begin (2) the building was removed either by the authority, by a developer under a development agreement with the Housing and Redevelopment Authority for the city of Oakdale, or by the owner of the property without entering into a development agreement with the Housing and Redevelopment Authority for the city of Oakdale; and new text end
new text begin (3) the request for certification of the parcel as part of a district is filed with the county auditor by December 31, 2017. new text end
new text begin (b) The provisions of this section allow an election by the Housing and Redevelopment Authority for the city of Oakdale for the parcels deemed occupied under paragraph (a), notwithstanding the provisions of Minnesota Statutes, sections 469.174, subdivision 10, paragraph (d), and 469.177, subdivision 1, paragraph (f). new text end
new text begin (c) The city may elect, in the tax increment financing plan, to collect increment from a redevelopment district created under the provisions of this section for an additional ten years beyond the limit in Minnesota Statutes, section 469.176, subdivision 1b. new text end
new text begin This section is effective upon compliance by the governing body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021, subdivision 3, except that the provisions of paragraph (c) are effective only upon compliance with Minnesota Statutes, section 469.1782, subdivision 2, by Ramsey County and Independent School District No. 622. new text end
Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision 1b, the city of Oakdale may collect tax increments from Tax Increment Financing District No. 6 (Bergen Plaza) through December 31, deleted text begin 2024deleted text end new text begin 2040new text end , subject to the conditions described in subdivision 2.
(a) Subdivision 1 applies only if the following conditions are met:
(1) by July 1, 2011, the city of Oakdale has entered into a development agreement with a private developer for development or redevelopment of all or a substantial part of the deleted text begin areadeleted text end new text begin parcels described in clause (2)new text end ; and
(2) by November 1, 2011, the city of Oakdale or a private developer commences construction of streets, traffic improvements, water, sewer, or related infrastructure that serves one or both of the parcels with the following parcel identification numbers: 2902921330001 and 2902921330005. For the purposes of this section, construction commences upon grading or other visible improvements that are part of the subject infrastructure.
(b) All tax increments received by the city of Oakdale under subdivision 1 after December 31, 2016, must be used only to pay costs that are bothnew text begin :new text end
(1) related to redevelopment of the parcels specified in this subdivisionnew text begin or parcel numbers 3102921320053, 3102921320054, 3102921320055, 3102921320056, 3102921320057, 3102921320058, 3102921320059, 3102921320060, 3102921320061, 3102921320062, 3102921320063, 3102921330004, and 3102921330005,new text end including, without limitation, any deleted text begin of thedeleted text end infrastructure deleted text begin referenced in this subdivisiondeleted text end new text begin that serves any of the referenced parcelsnew text end ; and
(2) otherwise eligible under law to be paid with increments from the specified tax increment financing districtdeleted text begin , except the authority under this clause does not apply to increments collected after the conclusion of the duration limit under general lawdeleted text end .
new text begin This section is effective upon compliance by the governing body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021, subdivision 3, except that the amendments to subdivision 1 are effective only upon compliance with Minnesota Statutes, section 469.1782, subdivision 2, by Ramsey County and Independent School District No. 622. new text end
new text begin The request for certification of Tax Increment Financing District No. 2, commonly referred to as the Norwest District, in the city of St. Cloud is deemed to have been made on or after August 1, 1979, and before July 1, 1982. Revenues derived from tax increment for that district must be treated for purposes of any law as revenue of a tax increment financing district for which the request for certification was made during that time period. new text end
new text begin This section is effective upon approval by the governing body of the city of St. Cloud and compliance with Minnesota Statutes, section 645.021, subdivision 3. new text end
new text begin Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision 1b, paragraph (a), clause (4), or any other law to the contrary, the city of Glencoe may collect tax increments from Tax Increment Financing District No. 4 (McLeod County District No. 007) through December 31, 2023, subject to the conditions in subdivision 2. new text end
new text begin (a) All tax increments derived from Tax Increment Financing District No. 4 (McLeod County District No. 007) that are collected after December 31, 2013, must be used only to pay debt service on or to defease bonds that were outstanding on January 1, 2013 and that were issued to finance improvements serving: new text end
new text begin (1) Tax Increment Financing District No. 14 (McLeod County District No. 033) (Downtown); new text end
new text begin (2) Tax Increment Financing District No. 15 (McLeod County District No. 035) (Industrial Park); and new text end
new text begin (3) benefited properties as further described in proceedings related to the city's series 2007A bonds, dated September 1, 2007, and any bonds issued to refund those bonds. new text end
new text begin (b) Increments may also be used to pay debt service on or to defease bonds issued to refund the bonds described in paragraph (a), if the refunding bonds do not increase the present value of debt service due on the refunded bonds when the refunding is closed. new text end
new text begin (c) When the bonds described in paragraphs (a) and (b) have been paid or defeased, the district must be decertified and any remaining increment returned to the city, county, and school district as provided in Minnesota Statutes, section 469.176, subdivision 2, paragraph (c), clause (4). new text end
new text begin This section is effective upon compliance by the governing bodies of the city of Glencoe, McLeod County, and Independent School District No. 2859 with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, subdivision 3. new text end
new text begin Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other law to the contrary, the city of Ely may collect tax increment from Tax Increment Financing District No. 1 through December 31, 2021. Increments from the district may only be used to pay binding obligations and administrative expenses. new text end
new text begin For purposes of this section, "binding obligations" means the binding contractual or debt obligation of Tax Increment Financing District No. 1 entered into before January 1, 2013. new text end
new text begin Notwithstanding Minnesota Statutes, section 469.1763, subdivision 2, the governing body of the city of Ely may elect to transfer revenues derived from increments from its Tax Increment Financing District No. 3 to the tax increment account established under Minnesota Statutes, section 469.177, subdivision 5, for Tax Increment Financing District No. 1. The amount that may be transferred is limited to the lesser of: new text end
new text begin (1) $168,000; or new text end
new text begin (2) the total amount due on binding obligations and outstanding on that date, less the amount of increment collected by Tax Increment Financing District No. 1 after December 31, 2012, and administrative expenses of Tax Increment Financing District No. 1 incurred after December 31, 2012. new text end
new text begin This section is effective upon approval by the governing bodies of the city of Ely, St. Louis County, and Independent School District No. 696 with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, subdivision 3. new text end
new text begin Notwithstanding the provisions of any other law, the Dakota County Community Development Agency may establish a redevelopment tax increment financing district comprised of the properties that (1) were included in the CDA 10 Robert Street and Smith Avenue district in the city of West St. Paul, and (2) were not decertified before July 1, 2012. The district created under this section terminates no later than December 31, 2023. new text end
new text begin The requirements for qualifying a redevelopment district under Minnesota Statutes, section 469.174, subdivision 10, do not apply to parcels located within the district. Minnesota Statutes, section 469.176, subdivision 4j, do not apply to the district. The original tax capacity of the district is $93,239. new text end
new text begin Tax increment from the district may be expended to pay for any eligible activities authorized by Minnesota Statutes, chapter 469, within the redevelopment area that includes the district provided that the boundaries of the redevelopment area may not be expanded to add new area after April 1, 2013. All such expenditures are deemed to be activities within the district under Minnesota Statutes, section 469.1763, subdivisions 2 and 4. new text end
new text begin The captured tax capacity of the district must be included in the adjusted net tax capacity of the city, county, and school district for the purposes of determining local government aid, education aid, and county program aid. The county auditor shall report to the commissioner of revenue the amount of the captured tax capacity for the district at the time the assessment abstracts are filed. new text end
new text begin This section is effective upon compliance by the governing body of the Dakota County Community Development Agency with the requirements of Minnesota Statutes, section 645.021, subdivision 3. new text end
new text begin (a) For the purposes of this section, the following terms have the meanings given to them. new text end
new text begin (b) "City" means the city of Apple Valley. new text end
new text begin (c) "Project area" means the following parcels: parcel numbers 01-03500-25-010, 01-03500-03-011, 01-03500-02-010, 01-03500-52-011, 01-03500-78-011, 01-03500-77-014, 01-03500-75-010, 01-03400-05-050, new text end
new text begin (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: new text end
new text begin (1) unusual terrain or soil deficiencies that occurred over 70 percent of the acreage in the district require substantial filling, grading, or other physical preparation for use; and new text end
new text begin (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, other than clauses (8) to (10), and 430.01, exceeds the fair market value of the land before completion of the preparation. new text end
new text begin (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. The city, or a development authority acting on its behalf, may establish one or more soils deficiency districts within the project area. new text end
new text begin (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 70 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: new text end
new text begin (1) peat or other soils with geotechnical deficiencies that impair development of commercial buildings or infrastructure; new text end
new text begin (2) soils or terrain that requires substantial filling in order to permit the development of commercial buildings or infrastructure; new text end
new text begin (3) landfills, dumps, or similar deposits of municipal or private waste; new text end
new text begin (4) quarries or similar resource extraction sites; new text end
new text begin (5) floodway; and new text end
new text begin (6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174, subdivision 10. new text end
new text begin (c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the relevant condition if at least 60 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. new text end
new text begin (d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is extended to ten years for any district, and the period under Minnesota Statutes, section 469.1763, subdivision 4, is extended to 11 years. new text end
new text begin (e) Notwithstanding any provision to the contrary in Minnesota Statutes, 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. new text end
new text begin (f) For a soil deficiency district: new text end
new text begin (1) increments may be collected through 20 years after the receipt by the authority of the first increment from the district; and new text end
new text begin (2) except as otherwise provided in this subdivision, increments may be used only to: new text end
new text begin (i) acquire parcels on which the improvements described in item (ii) will occur; new text end
new text begin (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 new text end
new text begin (iii) pay for the administrative expenses of the authority allocable to the district. new text end
new text begin (g) The authority to approve tax increment financing plans to establish tax increment financing districts under this section expires December 31, 2022. new text end
new text begin This section is effective upon compliance with Minnesota Statutes, section 645.021, subdivision 3. new text end
new text begin Notwithstanding Minnesota Statutes, section 469.176, subdivisions 4c and 4m, the city of Apple Valley may use tax increment financing to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities, if all of the following conditions are met: new text end
new text begin (1) the city of Apple Valley finds that the project will create or retain jobs in Minnesota, including construction jobs; new text end
new text begin (2) the city of Apple Valley finds that construction of the project will not commence before July 1, 2014, without the use of tax increment financing; new text end
new text begin (3) the request for certification of the district is made no later than June 30, 2014; new text end
new text begin (4) construction of the project begins no later than July 1, 2014; and new text end
new text begin (5) for development of housing, construction of the project begins no later than December 31, 2013. new text end
new text begin Notwithstanding the time limits in Minnesota Statutes, section 469.176, subdivision 4m, the city of Apple Valley has the authority to spend tax increments under Minnesota Statutes, section 469.176, subdivision 4m, until December 31, 2014. new text end
new text begin This section is effective upon approval by the governing body of the city of Apple Valley and timely compliance with Minnesota Statutes, section 645.021, subdivision 3. 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) "City" means the city of Minneapolis. new text end
new text begin (c) "County" means Hennepin County. new text end
new text begin (d) "District" means the areas certified by the city under subdivision 2 for collection of value capture taxes. new text end
new text begin (e) "Project area" means the area including one city block on either side of a streetcar line designated by the city to serve the downtown and adjacent neighborhoods of the city. new text end
new text begin (a) The governing body of the city may, by resolution, establish a value capture district consisting of some or all of the taxable parcels located within one or more of the following areas of the city, as described in the resolution: new text end
new text begin (1) the area bounded by Nicollet Avenue on the west, 16th Street East on the south, First Avenue South on the east, and 14th Street East on the north; new text end
new text begin (2) the area bounded by Spruce Place on the west, 14th Street West on the south, LaSalle Avenue on the east, and Grant Street West on the north; new text end
new text begin (3) the area bounded by Nicollet Avenue or Mall on the west, Fifth Street South on the south, Marquette Avenue on the east, and Fourth Street South on the north; new text end
new text begin (4) the area bounded by First Avenue North on the west, Washington Avenue on the south, Hennepin Avenue on the east, and Second Street North on the north; and new text end
new text begin (5) the area bounded by Fifth Street North East on the west, Central Avenue North East on the southeast, Sixth Street North East on the east, Hennepin Avenue East on the south, and First Avenue North East on the north. new text end
new text begin (b) The city may establish the district and the project area only after holding a public hearing on its proposed creation after publishing notice of the hearing and the proposal at least once not less than ten days nor more than 30 days before the date of the hearing. new text end
new text begin (a) If the city establishes a value capture district under subdivision 2, the city shall request the county auditor to certify the district for calculation of the district's tax revenues. new text end
new text begin (b) For purposes of calculating the tax revenues of the district, the county auditor shall treat the district as if it were a request for certification of a tax increment financing district under the provisions of Minnesota Statutes, section 469.177, subdivision 1, and shall calculate the tax revenues of the district for each year of its duration under subdivision 5 as equaling the amount of tax increment that would be computed by applying the provisions of Minnesota Statutes, section 469.177, subdivisions 1, 2, and 3, to determine captured tax capacity and multiplying by the current tax rate, excluding the state general tax rate. The city shall provide the county auditor with the necessary information to certify the district, including the option for calculating revenues derived from the areawide tax rate under Minnesota Statutes, chapter 473F. new text end
new text begin (c) The county auditor shall pay to the city at the same times provided for settlement of taxes and payment of tax increments the tax revenues of the district. The city must use the tax revenues as provided under subdivision 4. new text end
new text begin (a) In addition to paying for reasonable administrative costs of the district, the city may spend tax revenues of the district for property acquisition, improvements, and equipment to be used for operations within the project area, along with related costs, for: new text end
new text begin (1) planning, design, and engineering services related to the construction of the streetcar line; new text end
new text begin (2) acquiring property for, constructing, and installing a streetcar line; new text end
new text begin (3) acquiring and maintaining equipment and rolling stock and related facilities, such as maintenance facilities, which need not be located in the project area; new text end
new text begin (4) acquiring, constructing, or improving transit stations; and new text end
new text begin (5) acquiring or improving public space, including the construction and installation of improvements to streets and sidewalks, decorative lighting and surfaces, and plantings related to the streetcar line. new text end
new text begin (b) The city may issue bonds or other obligations under Minnesota Statutes, chapter 475, without an election, to fund acquisition or improvement of property of a capital nature authorized by this section, including any costs of issuance. The city may also issue bonds or other obligations to refund those bonds or obligations. Payment of principal and interest on the bonds or other obligations issued under this paragraph is a permitted use of the district's tax revenues. new text end
new text begin (c) Tax revenues of the district may not be used for the operation of the streetcar line. new text end
new text begin A district established under this section is limited to the lesser of (1) 25 years of tax revenues, or (2) the time necessary to collect tax revenues equal to the amount of the capital costs permitted under subdivision 4 or the amount needed to pay or defease bonds or other obligations issued under subdivision 4, whichever is later. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin (a) If the city of Maplewood elects, upon the adoption of a tax increment financing plan for a district, the rules under this section apply to one or more redevelopment tax increment financing districts established by the city or the economic development authority of the city. The area within which the redevelopment tax increment districts may be created is parcel 362922240002 (the "parcel") or any replatted parcels constituting a part of the parcel and the adjacent rights-of-way. For purposes of this section, the parcel is the "3M Renovation and Retention Project Area" or "project area." new text end
new text begin (b) The requirements for qualifying redevelopment tax increment districts under Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcel, which is deemed eligible for inclusion in a redevelopment tax increment district. new text end
new text begin (c) The 90 percent rule under Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the parcel. new text end
new text begin (d) The expenditures outside district rule under Minnesota Statutes, section 469.1763, subdivision 2, does not apply; the five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is extended to ten years; and expenditures must only be made within the project area. new text end
new text begin (e) If, after one year from the date of certification of the original net tax capacity of the tax increment district, no demolition, rehabilitation, or renovation of property has been commenced on a parcel located within the tax increment district, no additional tax increment may be taken from that parcel, and the original net tax capacity of the parcel shall be excluded from the original net tax capacity of the tax increment district. If 3M Company subsequently commences demolition, rehabilitation, or renovation, the authority shall certify to the county auditor that the activity has commenced, and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment district. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. new text end
new text begin (f) The authority to approve a tax increment financing plan and to establish a tax increment financing district under this section expires December 31, 2018. new text end
new text begin This section is effective upon approval by the governing body of the city of Maplewood and upon compliance with Minnesota Statutes, section 645.021, subdivision 3. new text end
new text begin (a) Notwithstanding the provisions of Minnesota Statutes, section 469.175, subdivision 4, or any other law to the contrary, the governing bodies of the Port Authority of the city of Bloomington and the city of Bloomington may elect to eliminate the real property north of the existing building line on Lot 1, Block 1, Mall of America 7th Addition, exclusive of Lots 2 and 3 from Tax Increment Financing District No. 1-C within Industrial Development District No. 1 Airport South in the city of Bloomington, Minnesota, and expand the boundaries of Tax Increment Financing District No. 1-G to include that property. new text end
new text begin (b) If the city elects to transfer parcels under this authority, the county auditor shall transfer the original tax capacity of the affected parcels from Tax Increment Financing District No. 1-C to Tax Increment Financing District No. 1-G. new text end
new text begin (a) Notwithstanding Minnesota Statutes, section 469.176, or Laws 1996, chapter 464, article 1, section 8, or any other law to the contrary, the city of Bloomington and its port authority may extend the duration limits of Tax Increment Financing Districts No. 1-C and No. 1-G through December 31, 2034. new text end
new text begin (b) Effective for property taxes payable in 2017 through 2034, the captured tax capacity of Tax Increment Financing District No. 1-C must be included in computing the tax rates of each local taxing district and the tax increment equals only the amount of tax computed under Minnesota Statutes, section 473F.08, subdivision 3c, paragraph (c). new text end
new text begin (c) Effective for property taxes payable in 2019 through 2034, the captured tax capacity of Tax Increment Financing District No. 1-G must be included in computing the tax rates of each local taxing district and the tax increment for the district equals only the amount of tax computed under Minnesota Statutes, section 473F.08, subdivision 3c, paragraph (c). new text end
new text begin Increments received under the provisions of subdivision 2, paragraph (b) or (c), and Minnesota Statutes, section 473F.08, subdivision 3c, are deemed to be tax increments of Tax Increment Financing District No. 1-G, notwithstanding any law to the contrary, and without regard to whether they are attributable to captured tax capacity of Tax Increment Financing District No. 1-C. new text end
new text begin The authority under this section expires and Tax Increment Financing Districts No. 1-C and No. 1-G must be decertified for taxes payable in 2024 and thereafter, if the total estimated market value of improvements for parcels located in Tax Increment Financing District No. 1-G, as modified, do not exceed $100,000,000 by taxes payable in 2023. new text end
new text begin This section is effective upon compliance of the governing body of the city of Bloomington with the requirements of Minnesota Statutes, section 645.021, subdivision 3, but only if the city enters into a binding written agreement with the Metropolitan Council to repair and restore, or to replace, the old Cedar Avenue bridge for use by bicycle commuters and recreational users. This section is effective without approval of the county and school district under Minnesota Statutes, section 469.1782, subdivision 2. The legislature finds that the county and school district are not "affected local government units" within the meaning of Minnesota Statutes, section 469.1782, because the provision allowing extended collection of increment by the tax increment financing districts does not affect their tax bases and tax rates dissimilarly to other counties and school districts in the metropolitan area. new text end
new text begin (a) Notwithstanding any law to the contrary, the city of Bloomington shall transfer from the tax increment financing accounts for its Tax Increment Financing District No. 1-C and Tax Increment Financing District No. 1-G an amount equal to the tax increment for each district that is computed under the provisions of Minnesota Statutes, section 473F.08, subdivision 3c, for taxes payable in 2014 to an account or fund established for the repair, restoration, or replacement of the Old Cedar Avenue bridge for use by bicycle commuters and recreational users. The city is authorized to and must use the transferred funds to complete the repair, renovation, or replacement of the bridge. new text end
new text begin (b) No signs, plaques, or markers acknowledging or crediting donations for, sponsorships of, or naming rights may be posted on or in the vicinity of the Old Cedar Avenue bridge. new text end
new text begin This section is effective upon compliance by the city of Bloomington with the requirements of Minnesota Statutes, section 645.021, subdivision 3. new text end
The following data maintained by the Minnesota Zoological Garden, the University of Minnesota, the Minnesota State Colleges and Universities, the Regional Parks Foundation of the Twin Cities, State Services for the Blind, new text begin the Destination Medical Center Corporation established pursuant to section 469.41, new text end and any related entity subject to chapter 13 are classified as private or nonpublic:
(1) research information about prospects and donors gathered to aid in determining appropriateness of solicitation and level of gift request;
(2) specific data in prospect lists that would identify prospects to be solicited, dollar amounts to be requested, and name of solicitor;
(3) portions of solicitation letters and proposals that identify the prospect being solicited and the dollar amount being requested;
(4) letters, pledge cards, and other responses received from donors regarding prospective gifts in response to solicitations;
(5) portions of thank-you letters and other gift acknowledgment communications that would identify the name of the donor and the specific amount of the gift, pledge, or pledge payment;
(6) donor financial or estate planning information, or portions of memoranda, letters, or other documents commenting on any donor's financial circumstances; and
(7) data detailing dates of gifts, payment schedule of gifts, form of gifts, and specific gift amounts made by donors.
Names of donors and gift ranges are public data.
new text begin Materials and supplies used in, and equipment incorporated into, the construction and improvement of publicly owned buildings and infrastructure included in the development plan adopted under section 469.43, and financed with public funds, are exempt. new text end
new text begin This section is effective for sales and purchases made after June 30, 2015, and before July 1, 2049. new text end
new text begin For the purposes of sections 469.40 to 469.47, the terms defined in this section have the meanings given them. new text end
new text begin "City" means the city of Rochester. new text end
new text begin "County" means Olmsted County. new text end
new text begin "Destination Medical Center Corporation," "corporation," or "DMCC" means the nonprofit corporation created by the city as provided in section 469.41, and organized under chapter 317A. new text end
new text begin "Destination medical center development district" or "development district" means a geographic area in the city identified in the DMCC development plan in which public infrastructure projects are implemented. new text end
new text begin "Development plan" means the plan adopted by the DMCC under section 469.43. new text end
new text begin "Financial interest" means a person's direct or indirect ownership or investment interest or compensation arrangement, whether through business, investment, or family, including spouse, children and stepchildren, and other relatives living with the person, as follows: new text end
new text begin (1) ownership or investment interest in the development, acquisition, or construction of a project in the development district; new text end
new text begin (2) compensation arrangement with respect to the development, acquisition, or construction of a project in the development district; or new text end
new text begin (3) potential ownership or investment interest in, or compensation arrangement with respect to, the development, acquisition, or construction of a project in the development district. new text end
new text begin "Medical business entity" means a medical business entity with its principal place of business in the city that, as of the effective date of this section, together with all business entities of which it is the sole member or sole shareholder, collectively employs more than 30,000 persons in the state. new text end
new text begin "Nonprofit economic development agency" or "agency" means the nonprofit agency required under section 469.43 to provide experience and expertise to the DMCC for purposes of developing and marketing the destination medical center. new text end
new text begin "Project" means a project to implement the development plan, whether public or private. new text end
new text begin (a) "Public infrastructure project" means a project financed in part or in whole with public money in order to support the medical business entity's development plans, as identified in the DMCC development plan. A public infrastructure project may: new text end
new text begin (1) acquire real property and other assets associated with the real property; new text end
new text begin (2) demolish, repair, or rehabilitate buildings; new text end
new text begin (3) remediate land and buildings as required to prepare the property for acquisition or development; new text end
new text begin (4) install, construct, or reconstruct elements of public infrastructure required to support the overall development of the destination medical center development district including, but not limited to, streets, roadways, utilities systems and related facilities, utility relocations and replacements, network and communication systems, streetscape improvements, drainage systems, sewer and water systems, subgrade structures and associated improvements, landscaping, façade construction and restoration, wayfinding and signage, and other components of community infrastructure; new text end
new text begin (5) acquire, construct or reconstruct, and equip parking facilities and other facilities to encourage intermodal transportation and public transit; new text end
new text begin (6) install, construct or reconstruct, furnish, and equip parks, cultural, and recreational facilities, facilities to promote tourism and hospitality, conferencing and conventions, broadcast and related multimedia infrastructure; new text end
new text begin (7) make related site improvements including, without limitation, excavation, earth retention, soil stabilization and correction, and site improvements to support the destination medical center development district; new text end
new text begin (8) prepare land for private development and to sell or lease land; new text end
new text begin (9) costs of providing relocation benefits to occupants of acquired properties; and new text end
new text begin (10) construct and equip all or a portion of one or more suitable structures on land owned by the city for sale or lease to private development; provided, however, that the portion of any structure directly financed by the city as a public infrastructure project must not be sold or leased to a medical business entity. new text end
new text begin (b) A public infrastructure project is not a business subsidy under section 116J.993. new text end
new text begin "Year" means a calendar year, except where otherwise provided. new text end
new text begin The city must establish a destination medical center corporation as a nonprofit corporation under chapter 317A to provide the city with expertise in preparing and implementing the development plan to establish the city as a destination medical center. Except as provided in sections 469.40 to 469.47, the nonprofit corporation is not subject to laws governing the city. new text end
new text begin (a) The corporation's governing board consists of eight members appointed, as follows: new text end
new text begin (1) the mayor of the city, or the mayor's designee, subject to approval by the city council; new text end
new text begin (2) the city council president, or the city council president's designee, subject to approval by the city council; new text end
new text begin (3) the chair or member of the county board, appointed by the county board; new text end
new text begin (4) a representative of the medical business entity appointed by and serving at the pleasure of the medical business entity; and new text end
new text begin (5) four members appointed by the governor, subject to confirmation by the senate. new text end
new text begin (b) Appointing authorities must make their respective appointments as soon as practicable after the effective date of this section, but no later than 60 days after enactment of this section. new text end
new text begin (c) A quorum of the board is six members. new text end
new text begin (a) A member first appointed after the effective date of this section under subdivision 2, paragraph (a), clauses (1), (2), and (3), serves for a term coterminous with the term of the elected office, but may be reappointed. new text end
new text begin (b) Two members first appointed after the effective date of this section under subdivision 2, paragraph (a), clause (5), serve from the date of appointment until the first Tuesday after the first Monday in January 2017, and two members first appointed after the effective date of this section under subdivision 2, paragraph (a), clause (5), serve from the date of appointment until the first Tuesday after the first Monday in January 2020. Thereafter, members appointed by the governor serve six-year terms. new text end
new text begin A vacancy occurs as provided in section 351.02 or upon a member's removal under subdivision 7. A vacancy on the board must be filled by the appointing authority for the balance of the term in the same manner as a regular appointment. new text end
new text begin The board must elect a chair from among the governor's appointees. The governor must convene the first meeting within 30 days of completion of all appointments to the board. new text end
new text begin Members must be compensated as provided in section 15.0575, subdivision 3. For the purposes of this subdivision, the member representing the medical business entity shall be treated as if an employee of a political subdivision. All money paid for compensation or reimbursement must be paid out of the corporation's budget. new text end
new text begin A member may be removed by the board for inefficiency, neglect of duty, or misconduct in office. A member may be removed only after a hearing of the board. A copy of the charges must be given to the board member at least ten days before the hearing. The board member must be given an opportunity to be heard in person or by counsel at the hearing. When written charges have been submitted against a board member, the board may temporarily suspend the member. If the board finds that those charges have not been substantiated, the board member must be immediately reinstated. If a board member is removed, a record of the proceedings, together with the charges and findings, must be filed with the office of the appointing authority. new text end
new text begin Meetings of the corporation and any committee or subcommittee of the corporation are subject to the open meeting law in chapter 13D. The corporation is a government entity for purposes of chapter 13. new text end
new text begin Except for the member appointed by the medical business entity, a member must not be a director, officer, or employee of the medical business entity. A member must not participate in or vote on a decision of the corporation relating to any project authorized by or under consideration by the corporation in which the member has either a direct or indirect financial interest. No member may serve as a lobbyist, as defined under section 10A.01, subdivision 21. new text end
new text begin A member of the corporation is a public official, as defined in section 10A.01, subdivision 35. new text end
new text begin The corporation may exercise any other powers that are granted by its articles of incorporation and bylaws to the extent that those powers are not inconsistent with the provisions of sections 469.40 to 469.47. new text end
new text begin (a) The corporation may contract for the services of the nonprofit economic development agency, financial advisors, other consultants, agents, public accountants, legal counsel, and other persons needed to perform its duties and exercise its powers. The corporation may contract with the city or county to provide administrative, clerical, and accounting services to the corporation. new text end
new text begin (b) The corporation must contract with the nonprofit agency for the services enumerated in section 469.43, subdivision 6, paragraph (a). The requirement to contract with the nonprofit agency does not limit the corporation's authority to contract with other providers for the services. new text end
new text begin A project must be approved by the corporation before it is proposed to the city. The corporation must review the project proposed for consistency with the adopted development plan. new text end
new text begin The city must provide for the terms for dissolution of the corporation in the articles of incorporation. new text end
new text begin The corporation may adopt bylaws and rules of procedure and may adopt an official seal. new text end
new text begin The corporation must annually elect a treasurer. The chair must appoint a secretary and assistant treasurer. The secretary and assistant treasurer need not, but may, be members of the board. new text end
new text begin The officers have the usual duties and powers of their offices. They may be given other duties and powers by the corporation. The corporation must establish and maintain a Web site. new text end
new text begin The treasurer: new text end
new text begin (1) must receive and is responsible for corporation money; new text end
new text begin (2) is responsible for the acts of the assistant treasurer; new text end
new text begin (3) must disburse corporation money by check or electronic procedures; new text end
new text begin (4) must keep an account of the source of all receipts, and of the nature, purpose, and authority of all disbursements; and new text end
new text begin (5) must file the corporation's detailed financial statement with its secretary at least once a year at times set by the authority. new text end
new text begin The secretary must perform duties as required by the board. new text end
new text begin The assistant treasurer has the powers and duties of the treasurer if the treasurer is absent or disabled. new text end
new text begin (a) The corporation, working with the city and the nonprofit economic development agency, must prepare and adopt a development plan. The corporation must hold a public hearing before adopting a development plan. At least 60 days before the hearing, the corporation must make copies of the proposed plan available to the public at the corporation and city offices during normal business hours, on the corporation's and city's Web site, and as otherwise determined appropriate by the corporation. At least ten days before the hearing, the corporation must publish notice of the hearing in the official newspaper of the city. The development plan may not be adopted, unless the corporation finds, by resolution, that: new text end
new text begin (1) the plan provides an outline for the development of the city as a destination medical center, and the plan is sufficiently complete, including the identification of planned and anticipated projects, to indicate its relationship to definite state and local objectives; new text end
new text begin (2) the proposed development affords maximum opportunity, consistent with the needs of the city, county, and state, for the development of the city by private enterprise as a destination medical center; new text end
new text begin (3) the proposed development conforms to the general plan for the development of the city and is consistent with the city comprehensive plan; new text end
new text begin (4) the plan includes: new text end
new text begin (i) strategic planning consistent with a destination medical center in the core areas of commercial research and technology, learning environment, hospitality and convention, sports and recreation, livable communities, including mixed-use urban development and neighborhood residential development, retail/dining/entertainment, and health and wellness; new text end
new text begin (ii) estimates of short- and long-range fiscal and economic impacts; new text end
new text begin (iii) a framework to identify and prioritize short- and long-term public investment and public infrastructure project development and to facilitate private investment and development, including the criteria and process for evaluating and underwriting development proposals; new text end
new text begin (iv) land use planning; new text end
new text begin (v) transportation and transit planning; new text end
new text begin (vi) operational planning required to support the medical center development district; and new text end
new text begin (vii) ongoing market research plans; and new text end
new text begin (5) the city has approved the plan. new text end
new text begin (b) The identification of planned and anticipated projects under paragraph (a), clause (1), must give priority to projects that will pay wages at least equal to the basic cost of living wage as calculated by the commissioner of employment and economic development for the county in which the project is located. The calculation of the basic cost of living wage must be done as provided for under section 116J.013, if enacted by the 2013 legislature. new text end
new text begin Section 15.99 does not apply to review and approval of the development plan. The city shall act on the development plan within 60 days following its submission by the corporation. The city may incorporate the development plan into the city's comprehensive plan. new text end
new text begin All projects are subject to the planning, zoning, sanitary, and building laws; ordinances; regulations; and land use plans that apply to the city. new text end
new text begin The corporation may modify the development plan at any time. The corporation must update the development plan not less than every five years. A modification or update under this subdivision must be adopted by the corporation upon the notice and after the public hearing and findings required for the original adoption of the development plan, including approval by the city. new text end
new text begin As part of the development plan, the corporation may create and define the boundaries of medical center development districts and subdistricts at any place or places within the city. Projects may be undertaken within defined medical center development districts consistent with the development plan. new text end
new text begin (a) The medical business entity must establish a nonprofit economic development agency organized under chapter 317A to provide experience and expertise in developing and marketing the destination medical center. The corporation must engage the agency to assist the corporation in preparing the development plan. The governing board of the agency must be comprised of members of the medical community, city, and county. The agency must collaborate with city, county, and other community representatives. The nonprofit agency must provide services to assist the corporation and city in implementing the goals, objectives, and strategies in the development plan including, but not limited to: new text end
new text begin (1) facilitating private investment through development of a comprehensive marketing program to global interests; new text end
new text begin (2) developing and updating the criteria for evaluating and underwriting development proposals; new text end
new text begin (3) drafting and implementing the development plan, including soliciting and evaluating proposals for development and evaluating and making recommendations to the authority and the city regarding those proposals; new text end
new text begin (4) providing transactional services in connection with approved projects; new text end
new text begin (5) developing patient, visitor, and community outreach programs for a destination medical center development district; new text end
new text begin (6) working with the corporation to acquire and facilitate the sale, lease, or other transactions involving land and real property; new text end
new text begin (7) seeking financial support for the corporation, the city, and a project; new text end
new text begin (8) partnering with other development agencies and organizations, the city, and the county in joint efforts to promote economic development and establish a destination medical center; new text end
new text begin (9) supporting and administering the planning and development activities required to implement the development plan; new text end
new text begin (10) preparing and supporting the marketing and promotion of the medical center development district; new text end
new text begin (11) preparing and implementing a program for community and public relations in support of the medical center development district; new text end
new text begin (12) assisting the corporation or city and others in applications for federal grants, tax credits, and other sources of funding to aid both private and public development; and new text end
new text begin (13) making other general advisory recommendations to the corporation and the city, as requested. new text end
new text begin (b) The nonprofit economic development agency must disclose to the city and to the corporation the existence, nature, and all material facts regarding any financial interest its employees or contractors have in any public infrastructure project submitted to the city for approval and any financial interest its employees or contractors have in the destination medical center development. "Contractors" includes affiliates of the contractors or members or shareholders with an ownership interest of more than 20 percent in the contractor. new text end
new text begin Any contract for services between the corporation and the nonprofit economic development agency paid, in whole or in part, with public money provides the corporation, the city, and the state auditor the right to audit the books and records of the agency that are necessary to certify: new text end
new text begin (1) the nature and extent of the services furnished pursuant to the contract; and new text end
new text begin (2) that the payment for services and related disbursements complies with all state laws, regulations, and the terms of the contract. new text end
new text begin Any contract for services between the corporation and the agency paid, in whole or in part, with public money must require the corporation to maintain for the life of the corporation accurate and complete books and records directly relating to the contract. new text end
new text begin By February 15 of each year, the corporation and city must jointly submit a report to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over local and state government operations, economic development, and taxes, and to the commissioners of revenue and employment and economic development, and the county. The corporation and city must also submit the report as provided in section 3.195. The report must include: new text end
new text begin (1) the development plan and any proposed changes to the development plan; new text end
new text begin (2) progress of projects identified in the development plan; new text end
new text begin (3) actual costs and financing sources, including the amount paid with state aid under section 469.47, and required local contributions of projects completed in the previous two years by the corporation, city, county, and the medical business entity; new text end
new text begin (4) estimated costs and financing sources for projects to be started in the next two years by the corporation, city, county, and the medical business entity; and new text end
new text begin (5) debt service schedules for all outstanding obligations of the city for debt issued for projects identified in the plan. new text end
new text begin The city may exercise the powers of a port authority under sections 469.048 to 469.068 for the purposes of implementing the destination medical center development plan. new text end
new text begin The city must provide financial and administrative support, and office and other space, to the corporation. The city may appropriate city funds to the corporation for its work. new text end
new text begin The city may issue general obligation bonds, revenue bonds, or other obligations, as it determines appropriate, to finance public infrastructure projects, as provided by chapter 475. Notwithstanding section 475.53, obligations issued under this section are not subject to the limits on net debt, regardless of their source of security or payment. Notwithstanding section 475.58 or any other law or charter provision to the contrary, issuance of obligations under the provisions of this section are not subject to approval of the electors. The city may pledge any of its revenues, including property taxes, the taxes authorized by sections 469.45 and 469.46, and the state aid under section 469.47, as security for and to pay the obligations. The city must not issue obligations that are only payable from or secured by state aid under section 469.47. new text end
new text begin Nothing in sections 469.40 to 469.47 reduces the tax base or affects the taxes due and payable to the city, the county, or any school district within the boundaries of the city, including without limitation, the city's general local sales tax. new text end
new text begin The city may exercise the powers under subdivision 3 with respect to any public infrastructure project commenced within the area that will be in the destination medical center development district after the effective date of this section but before the development plan is adopted subject to approval by the corporation. Actions taken under this authority must be approved by the corporation to be credited against the local contribution required under section 469.47, subdivision 4. new text end
new text begin The city must require that a public infrastructure project use American steel products to the extent practicable. In determining whether it is practicable, the city may consider the exceptions to the requirement in Public Law 111-5, section 1605. new text end
new text begin For all public infrastructure projects, the city must make every effort to hire and cause the construction manager and any subcontractors to employ women and members of minority communities. Goals for construction contracts must be established in the manner required under the city's minority and women-owned business enterprises utilization plan. new text end
new text begin (a) Upon the request of the corporation or the nonprofit agency, the city or its economic development authority shall issue revenue bonds or other similar obligations for a qualifying project. Revenue bonds or other obligations as used in this subdivision means bonds or other obligations issued under sections 469.152 to 469.165 or under chapter 462C, the interest on which is tax exempt. The city or its development authority shall use its best efforts to issue the bonds or other obligations as promptly and efficiently as possible following the request and the provision of the information and completion of the actions by the corporation or the nonprofit agency that are necessary for the issuance. Upon request of the corporation or nonprofit agency, the city or its economic development authority shall adopt methods and procedures that preserve the confidentiality of private donors or other private participants in the qualifying project, including structures and methods that do not require disclosing information on the donors or participants to the city or its economic development authority, and shall segregate in separate accounts all funds related to a qualifying project from other city and authority funds. new text end
new text begin (b) For purposes of this section, a "qualifying project" means a project, as that term is defined in section 469.153, or a project that would qualify for financing under chapter 462C, that: new text end
new text begin (1) the corporation finds is consistent with and will further the goals of the development plan; new text end
new text begin (2) is located in a medical development district; and new text end
new text begin (3) has a commitment of private funding sources such as donations of money or in-kind contributions, other than revenues generated by the project, equal to at least ten percent of the total capital cost of the project. new text end
new text begin (a) Notwithstanding section 469.068 or any other law to the contrary, the city need not require competitive bidding with respect to a parking facility or other public improvements constructed in conjunction with, and directly above or below, or adjacent and integrally related to, a private development financed or developed under the development plan. new text end
new text begin (b) For purposes of this section, "city" includes the development authority established by the city. new text end
new text begin (a) Notwithstanding section 477A.016, or any other contrary provision of law, ordinance, or city charter, and in addition to any taxes the city may impose on these transactions under another statute or law, the city of Rochester may, by ordinance, impose at a rate or rates, determined by the city, any of the following taxes: new text end
new text begin (1) a tax on the gross receipts from the furnishing for consideration of lodging and related services as defined in section 297A.61, subdivision 3, paragraph (g), clause (2); the city may choose to impose a differential tax based on the number of rooms in the facility; new text end
new text begin (2) a tax on the gross receipts of food and beverages sold primarily for consumption on the premises by restaurants and places of refreshment that occur in the city of Rochester; the city may elect to impose the tax in a defined district of the city; and new text end
new text begin (3) a tax on the admission receipts to entertainment and recreational facilities, as defined by ordinance, in the city of Rochester. new text end
new text begin (b) The provisions of section 297A.99, subdivisions 4 to 13, govern the administration, collection, and enforcement of any tax imposed by the city under paragraph (a). new text end
new text begin (c) The proceeds of any taxes imposed under this subdivision, less refunds and costs of collection, must be used by the city only to meet its share of obligations for public infrastructure projects contained in the development plan and approved by the corporation, including any associated financing costs. Any tax imposed under paragraph (a) expires at the earlier of December 31, 2049, or when the city council determines that sufficient funds have been raised from the tax plus all other local funding sources authorized in this article to meet the city obligation for financing public infrastructure projects contained in the development plan and approved by the corporation, including any associated financing costs. new text end
new text begin The city may elect to extend the existing local sales and use tax under section 13 or to impose an additional rate of up to one quarter of one percent tax on sales and use under section 11. The proceeds of any extended or additional taxes imposed under this subdivision, less refunds and costs of collection, must be used by the city only to meet its share of obligations for public infrastructure projects contained in the development plan and approved by the corporation, including all financing costs. Revenues collected in any year to meet the obligations must be used for payment of obligations or expenses for public infrastructure projects approved by the corporation. new text end
new text begin (a) If the city or the county elects to use tax abatement under sections 469.1812 to 469.1815 to finance costs of public infrastructure projects, including all financing costs, the special rules under this subdivision apply. Taxes abated for public infrastructure projects must be used only for obligations or other infrastructure projects approved by the corporation. new text end
new text begin (b) The limitations under section 469.1813, subdivision 6, do not apply to the city or the county. new text end
new text begin (c) The limitations under section 469.1813, subdivision 8, do not apply and property taxes abated by the city or the county to finance costs of public infrastructure projects are not included for purposes of applying section 469.1813, subdivision 8, to the use of tax abatement for other purposes of the city or the county; however, the total amount of property taxes abated by the city and the county under this authority must not exceed $87,750,000. new text end
new text begin If the city elects to establish one or more redevelopment tax increment financing districts within the area of the destination medical center development district to fund public infrastructure projects, the requirements, definitions, limitations, or restrictions in the following statutes do not apply: sections 469.174, subdivisions 10 and 25, clause (2); 469.176, subdivisions 4j, 4l, and 5; and 469.1763, subdivisions 2, 3, and 4. The provisions of this subdivision expire effective for tax increments expended after December 31, 2049. After that date, the provisions of section 469.1763, subdivision 4, apply to any remaining unspent or unobligated increments. new text end
new text begin (a) Notwithstanding sections 297A.99, 297A.993, and 477A.016, or any other contrary provision of law, ordinance, or charter, and in addition to any taxes the county may impose under another law or statute, the Board of Commissioners of Olmsted County may, by resolution, impose a transit tax of up to one quarter of one percent on retail sales and uses taxable under chapter 297A. The provisions of section 297A.99, subdivisions 4 to 13, govern the imposition, administration, collection, and enforcement of the tax authorized under this paragraph. new text end
new text begin (b) The Board of Commissioners of Olmsted County may, by resolution, levy an annual wheelage tax of up to $10 on each motor vehicle kept in the county when not in operation which is subject to annual registration and taxation under chapter 168, for transportation projects within the county. The wheelage tax must not be imposed on the vehicles exempt from wheelage tax under section 163.051, subdivision 1. The board, by resolution, may provide for collection of the wheelage tax by county officials, or it may request that the tax be collected by the state registrar on behalf of the county. The provisions of section 163.051, subdivisions 2, 2a, 3, and 7, must govern the administration, collection, and enforcement of the tax authorized under this paragraph. The tax authorized under this section is in addition to any tax the county may be authorized to impose under section 163.051, but until January 1, 2018, the county tax imposed under this paragraph, in combination with any tax imposed under section 163.051, must equal the specified rate under section 163.051. new text end
new text begin (c) The proceeds of any taxes imposed under paragraph (a), less refunds and costs of collection, must be first used by the county to meet its local matching contributions under section 469.47, subdivision 6, for financing transit infrastructure related to the public infrastructure projects contained in the development plan and approved by the corporation, including any financing costs. Revenues collected in any calendar year in excess of the county obligation to pay for projects contained in the development plan may be retained by the county and used for funding other transportation projects, including roads and bridges, airports, and transportation improvements. new text end
new text begin (d) Any taxes imposed under paragraph (a) expire December 31, 2049, or at an earlier time if approved by resolution of the county board of commissioners. The taxes must not terminate before the county board of commissioners determines that revenues from these taxes and any other revenue source the county dedicates are sufficient to pay the county share of transit project costs and financing costs under the development plan. 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) "Commissioner" means the commissioner of employment and economic development. new text end
new text begin (c) "Construction projects" means: new text end
new text begin (1) for expenditures by a medical business entity, construction of buildings in the city for which the building permit was issued after June 30, 2013; and new text end
new text begin (2) for any other expenditures, construction of privately owned buildings and other improvements that are undertaken pursuant to or as part of the development plan and are located within a medical center development district. new text end
new text begin (d) "Expenditures" means expenditures made by a medical business entity or by an individual or private entity on construction projects for the capital cost of the project including, but not limited to: new text end
new text begin (1) design and predesign, including architectural, engineering, and similar services; new text end
new text begin (2) legal, regulatory, and other compliance costs of the project; new text end
new text begin (3) land acquisition, demolition of existing improvements, and other site preparation costs; new text end
new text begin (4) construction costs, including all materials and supplies of the project; and new text end
new text begin (5) equipment and furnishings that are attached to or become part of the real property. new text end
new text begin Expenditures excludes supplies and other items with a useful life of less than a year that are not used or consumed in constructing improvements to real property or are otherwise chargeable to capital costs. new text end
new text begin (e) "Qualified expenditures" has the following meaning. In the first year in which aid is paid under this section, "qualified expenditures" means the total certified expenditures since June 30, 2013, through the end of the preceding year, minus $200,000,000. For subsequent years, "qualified expenditures" means the certified expenditures for the preceding year. new text end
new text begin (f) "Transit costs" means the portions of a public infrastructure project that are for public transit intended primarily to serve the district, such as transit stations, equipment, rights-of-way, and similar costs. new text end
new text begin By April 1 of each year, the medical business entity must certify to the commissioner the amount of expenditures made by the medical business entity in the preceding year. For expenditures made by an individual or entity other than the medical business entity, the corporation shall compile the information on the expenditures and may certify the amount to the commissioner. The certification must be made in the form that the commissioner prescribes and include any documentation of and supporting information regarding the expenditures that the commissioner requires. By August 1 of each year, the commissioner must determine the amount of the expenditures for the preceding year. new text end
new text begin (a) General state infrastructure aid may not be paid out under this section until total expenditures exceed $200,000,000. new text end
new text begin (b) The amount of the general state infrastructure aid for a fiscal year equals the sum of qualified expenditures, multiplied by 2.75 percent. The maximum amount of state aid payable in any year is limited to no more than $30,000,000. If the aid entitlement for the year exceeds the maximum annual limit, the excess is an aid carryover to later years. The carryover aid must be paid in the first year in which the aid entitlement for the current year is less than the maximum annual limit, but only to the extent the carryover, when added to the current year aid, is less than the maximum annual limit. If the commissioner determines that the city has made the required matching local contribution under subdivision 4, the commissioner must pay to the city the amount of general state infrastructure aid for the year by September 1. new text end
new text begin (c) The city must use general state infrastructure aid it receives under this subdivision for improvements and other capital costs related to the public infrastructure projects approved by the corporation, other than transit costs. The city must maintain appropriate records to document the use of the funds under this requirement. new text end
new text begin (d) The commissioner, in consultation with the commissioner of management and budget, and representatives of the city and the corporation, must establish a total limit on the amount of state aid payable under this subdivision that will be adequate to finance, in combination with the local contribution, $455,000,000 of general public infrastructure projects. new text end
new text begin In order to qualify for general state infrastructure aid, the city must enter a written agreement with the commissioner that requires the city to make a qualifying local matching contribution to pay for $128,000,000 of the cost of public infrastructure projects approved by the corporation, including financing costs, using funds other than state aid received under this section. The $128,000,000 required local matching contribution is reduced by one half of the amounts the city pays for operating and administrative costs of the corporation up to a maximum amount agreed to by the board and the city. The agreement must provide for the manner, timing, and amounts of the city contributions, including the city's commitment for each year. Notwithstanding any law to the contrary, the agreement may provide that the city contributions for public infrastructure project principal costs may be made over a 20-year period at a rate not greater than $1 from the city for each $2.55 from the state. The local match contribution may be provided by the city from any source identified in section 469.45 and any other local tax proceeds or other funds from the city and may include providing funds to assist developers undertaking projects in accordance with the development plan or by the city directly undertaking public infrastructure projects in accordance with the development plan, provided the projects have been approved by the corporation. City contributions that are in excess of this ratio carry forward and are credited towards subsequent years. The commissioner and city may agree to amend the agreement at any time in light of new information or other appropriate factors. The city may enter into arrangements with the county to pay for or otherwise meet the local matching contribution requirement. Any public infrastructure project within the area that will be in the destination medical center development district whose implementation is started or funded by the city after the effective date of this section but before the development plan is adopted, as provided by section 469.46, subdivision 5, will be included for the purposes of determining the amount the city has contributed as required by this section and the agreement with the commissioner, subject to approval by the corporation. new text end
new text begin (a) The city qualifies for state transit aid under this section if the county contributes the required local matching contribution under subdivision 6 or the city or county has agreed to make an equivalent contribution out of other funds for the year. new text end
new text begin (b) If the city qualifies for aid under paragraph (a), the commissioner must pay the city the state transit aid in the amount calculated under this paragraph. The amount of the state transit aid for a fiscal year equals the sum of qualified expenditures, as certified by the commissioner for the prior year, multiplied by 0.75 percent, reduced by the amount of the local contribution under subdivision 6. The maximum amount of state transit aid payable in any year is limited to no more than $7,500,000. If the aid entitlement for the year exceeds the maximum annual limit, the excess is an aid carryover to later years. The carryover aid must be paid in the first year in which the aid entitlement for the current year is less than the maximum annual limit, but only to the extent the carryover, when added to the current year aid, is less than the maximum annual limit. new text end
new text begin (c) The commissioner, in consultation with the commissioner of management and budget, and representatives of the city and the corporation, must establish a total limit on the amount of state aid payable under this subdivision that will be adequate to finance, in combination with the local contribution, $116,000,000 of transit costs. new text end
new text begin (d) The city must use state transit aid it receives under this subdivision for transit costs. The city must maintain appropriate records to document the use of the funds under this requirement. new text end
new text begin (a) The required local matching contribution for state transit aid equals the lesser of: new text end
new text begin (1) 40 percent of the state transit aid under subdivision 5; or new text end
new text begin (2) the amount that would be raised by a 0.15 percent sales tax imposed by the county in the preceding year. new text end
new text begin The county may impose the sales tax or the wheelage tax under section 469.46 to meet this obligation. new text end
new text begin (b) If the county elects not to impose any of the taxes authorized under section 469.46, the county, or city, or both, may agree to make the local contribution out of other available funds, other than state aid payable under this section. The commissioner of revenue must estimate the required amount and certify it to the commissioner, city, and county. new text end
new text begin During the construction, installation, remodelling, and repairs of any public infrastructure project funded by state aid or a local matching contribution under this section, laborers and mechanics at the site must be paid the prevailing wage rate as defined in section 177.42, subdivision 6, and the project is subject to the requirements of sections 177.30 and 177.41 to 177.44. new text end
new text begin No aid may be paid under this section after fiscal year 2049. new text end
new text begin An amount sufficient to pay the state general infrastructure and state transit aid authorized under this section is appropriated to the commissioner from the general fund. new text end
new text begin (a) new text end Notwithstanding Minnesota Statutes, section 477A.016, or any other contrary provision of law, ordinance, or city charter, upon termination of the taxes authorized under Laws 1992, chapter 511, article 8, section 33, subdivision 1, and if approved by the voters of the city at a general or special election held within one year of the date of final enactment of this act, the city of Rochester may, by ordinance, impose an additional sales and use tax of up to one-half of one percent. The provisions of Minnesota Statutes, section deleted text begin 297A.48deleted text end new text begin 297A.99new text end , govern the imposition, administration, collection, and enforcement of the tax authorized under this deleted text begin subdivisiondeleted text end new text begin paragraphnew text end .
new text begin (b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other contrary provision of law, ordinance, or charter, the city of Rochester may, by ordinance, impose an additional sales and use tax of up to one quarter of one percent. The provisions of Minnesota Statutes, section 297A.99, subdivisions 1 and 4 to 13, govern the imposition, administration, collection, and enforcement of the tax authorized under this paragraph. new text end
(a) Revenues received from the taxes authorized by subdivisions 1new text begin , paragraph (a), new text end and 2 must be used by the city to pay for the cost of collecting and administering the taxes and to pay for the following projects:
(1) transportation infrastructure improvements including regional highway and airport improvements;
(2) improvements to the civic center complex;
(3) a municipal water, sewer, and storm sewer project necessary to improve regional ground water quality; and
(4) construction of a regional recreation and sports center and other higher education facilities available for both community and student use.
(b) The total amount of capital expenditures or bonds for projects listed in paragraph (a) that may be paid from the revenues raised from the taxes authorized in this section may not exceed $111,500,000. The total amount of capital expenditures or bonds for the project in clause (4) that may be paid from the revenues raised from the taxes authorized in this section may not exceed $28,000,000.
(c) In addition to the projects authorized in paragraph (a) and not subject to the amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an election under subdivision 5, paragraph (c), use the revenues received from the taxes and bonds authorized in this section to pay the costs of or bonds for the following purposes:
(1) $17,000,000 for capital expenditures and bonds for the following Olmsted County transportation infrastructure improvements:
(i) County State Aid Highway 34 reconstruction;
(ii) Trunk Highway 63 and County State Aid Highway 16 interchange;
(iii) phase II of the Trunk Highway 52 and County State Aid Highway 22 interchange;
(iv) widening of County State Aid Highway 22 West Circle Drive; and
(v) 60th Avenue Northwest corridor preservation;
(2) $30,000,000 for city transportation projects including:
(i) Trunk Highway 52 and 65th Street interchange;
(ii) NW transportation corridor acquisition;
(iii) Phase I of the Trunk Highway 52 and County State Aid Highway 22 interchange;
(iv) Trunk Highway 14 and Trunk Highway 63 intersection;
(v) Southeast transportation corridor acquisition;
(vi) Rochester International Airport expansion; and
(vii) a transit operations center bus facility;
(3) $14,000,000 for the University of Minnesota Rochester academic and complementary facilities;
(4) $6,500,000 for the Rochester Community and Technical College/Winona State University career technical education and science and math facilities;
(5) $6,000,000 for the Rochester Community and Technical College regional recreation facilities at University Center Rochester;
(6) $20,000,000 for the Destination Medical Community Initiative;
(7) $8,000,000 for the regional public safety and 911 dispatch center facilities;
(8) $20,000,000 for a regional recreation/senior center;
(9) $10,000,000 for an economic development fund; and
(10) $8,000,000 for downtown infrastructure.
(d) No revenues from the taxes raised from the taxes authorized in subdivisions 1 and 2 may be used to fund transportation improvements related to a railroad bypass that would divert traffic from the city of Rochester.
(e) deleted text begin The city shall use $5,000,000 of the money allocated to the purpose in paragraph (c), clause (9), for grants to the cities of Byron, Chatfield, Dodge Center, Dover, Elgin, Eyota, Kasson, Mantorville, Oronoco, Pine Island, Plainview, St. Charles, Stewartville, Zumbrota, Spring Valley, West Concord, and Hayfield for economic development projects that these communities would fund through their economic development authority or housing and redevelopment authority.deleted text end new text begin Notwithstanding Minnesota Statutes, section 297A.99, subdivisions 2 and 3, if the city decides to extend the taxes in subdivisions 1, paragraph (a), and 2, as allowed under subdivision 5, paragraph (c), the city must use any amount in excess of the amount necessary to meet obligations under paragraphs (a) to (c) from those taxes to fund obligations, including financing costs, related to public infrastructure projects in the development plan adopted under Minnesota Statutes, section 469.43.new text end
new text begin (f) Revenues from the tax under subdivision 1, paragraph (b), must be used to fund obligations, including financing costs, related to the public infrastructure projects contained in the development plan approved by the DMCC and adopted by the city under Minnesota Statutes, section 469.43. new text end
(a) The taxes imposed under subdivisions 1 and 2 expire at the later of (1) December 31, 2009, or (2) when the city council determines that sufficient funds have been received from the taxes to finance the first $71,500,000 of capital expenditures and bonds for the projects authorized in subdivision 3, including the amount to prepay or retire at maturity the principal, interest, and premium due on any bonds issued for the projects under subdivision 4, unless the taxes are extended as allowed in paragraph (b). Any funds remaining after completion of the project and retirement or redemption of the bonds shall also be used to fund the projects under subdivision 3. The taxes imposed under subdivisions 1 and 2 may expire at an earlier time if the city so determines by ordinance.
(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009, if approved by the voters of the city at a special election in 2005 or the general election in 2006. The question put to the voters must indicate that an affirmative vote would allow up to an additional $40,000,000 of sales tax revenues be raised and up to $40,000,000 of bonds to be issued above the amount authorized in the June 23, 1998, referendum for the projects specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are extended under this paragraph, the taxes expire when the city council determines that sufficient funds have been received from the taxes to finance the projects and to prepay or retire at maturity the principal, interest, and premium due on any bonds issued for the projects under subdivision 4. Any funds remaining after completion of the project and retirement or redemption of the bonds may be placed in the general fund of the city.
(c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance, extend the taxes authorized in subdivisions 1new text begin , paragraph (a), new text end and 2 deleted text begin beyond the datedeleted text end new text begin , up to December 31, 2049, provided that all additional revenues above those necessary to fund the projects and associated financing costs listed in subdivision 3, paragraphs (a) to (e), are committed to fund public infrastructure projects contained in the development plan adopted under Minnesota Statutes, section 469.43, including all financing costs; otherwise the taxes terminate when new text end the city council determines that sufficient funds have been received from the taxes to finance deleted text begin $111,500,000 ofdeleted text end expenditures and bonds for the projects authorized in subdivision 3, deleted text begin paragraph (a)deleted text end new text begin paragraphs (a) to (e)new text end , plus an amount equal to the costs of issuance of the bonds and including the amount to prepay or retire at maturity the principal, interest, and premiums due on any bonds issued for the projects under subdivision 4deleted text begin , paragraph (a), if approved by the voters of the city at the general election in 2012. If the election to authorize the additional $139,500,000 of bonds plus an amount equal to the costs of the issuance of the bonds is placed on the general election ballot in 2012, the city may continue to collect the taxes authorized in subdivisions 1 and 2 until December 31, 2012. The question put to the voters must indicate that an affirmative vote would allow sales tax revenues be raised for an extended period of time and an additional $139,500,000 of bonds plus an amount equal to the costs of issuance of the bonds, to be issued above the amount authorized in the previous elections required under paragraphs (a) and (b) for the projects and amounts specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are extended under this paragraph, the taxes expire when the city council determines that $139,500,000 has been received from the taxes to finance the projects plus an amount sufficient to prepay or retire at maturity the principal, interest, and premium due on any bonds issued for the projects under subdivision 4, including any bonds issued to refund the bonds. Any funds remaining after completion of the projects and retirement or redemption of the bonds may be placed in the general fund of the citydeleted text end .
new text begin (d) The tax imposed under subdivision 1, paragraph (b), expires at the earlier of 2049, or when the city council determines that sufficient funds have been raised from the tax plus all other city funding sources authorized in this article to meet the city obligation for financing the public infrastructure projects contained in the development plan adopted under Minnesota Statutes, section 469.43, including all financing costs. new text end
new text begin The city council may, after holding a public hearing and passing a resolution, use $5,000,000 of the $10,000,000 allocated to an economic development fund in Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by Laws 2005, First Special Session chapter 3, article 5, section 28, and Laws 2011, First Special Session chapter 7, article 4, section 5, paragraph (c), clause (9), for grants to any or all of the cities of Byron, Chatfield, Dodge Center, Dover, Elgin, Eyota, Hayfield, Kasson, Mantorville, Oronoco, Pine Island, Plainview, Spring Valley, St. Charles, Stewartville, West Concord, and Zumbrota for economic development projects that these communities would fund through their economic development authority or housing and redevelopment authority. The public hearing may be part of a regular city council meeting. If the council does not pass the resolution by September 1, 2013, the $5,000,000 may not be used for grants to the other cities but shall instead be used to fund public infrastructure projects contained in the development plan under Minnesota Statutes, section 469.42. new text end
new text begin The study by the Olmsted County Regional Rail authority, in conjunction with the Minnesota Department of Transportation, on interregional passenger rail, and funded under Laws 2009, chapter 93, article 1, section 11, subdivision 5, must include analysis of the feasibility of a high-speed rail connection between Rochester and the Mall of America via Minnesota State Highway 77 with connections to the Minneapolis-St. Paul International Airport and the Union Depot in St. Paul; and, to the extent feasible, take into account available data, forecasts, available transportation demand modeling information, and transportation impacts of major economic initiatives and proposals including, but not limited to, expansion of the Mayo Clinic. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin Except as otherwise provided, this article is effective the day after the governing body of the city of Rochester and its chief clerical officer timely comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end
(1) Reductions in levies pursuant to subdivision 1 must be made prior to the reductions in clause (2).
(2) Notwithstanding any other law to the contrary, districts that have revenue pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34 to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon severed mineral values must reduce the levies authorized by this chapter and chapters 120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of new text begin the sum of new text end the previous year's revenue specified under this clausenew text begin and the amount attributable to the same production year distributed to the cities and townships within the school district under section 298.28, subdivision 2, paragraph (c)new text end .
(3) The amount of any voter approved referendum, facilities down payment, and debt levies shall not be reduced by more than 50 percent under this subdivision. In administering this paragraph, the commissioner shall first reduce the nonvoter approved levies of a district; then, if any payments, severed mineral value tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall reduce any voter approved referendum levies authorized under section 126C.17; then, if any payments, severed mineral value tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall reduce any voter approved facilities down payment levies authorized under section 123B.63 and then, if any payments, severed mineral value tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall reduce any voter approved debt levies.
(4) Before computing the reduction pursuant to this subdivision of the health and safety levy authorized by sections 123B.57 and 126C.40, subdivision 5, the commissioner shall ascertain from each affected school district the amount it proposes to levy under each section or subdivision. The reduction shall be computed on the basis of the amount so ascertained.
(5) To the extent the levy reduction calculated under paragraph (2) exceeds the limitation in paragraph (3), an amount equal to the excess must be distributed from the school district's distribution under sections 298.225, 298.28, and 477A.15 in the following year to the cities and townships within the school district in the proportion that their taxable net tax capacity within the school district bears to the taxable net tax capacity of the school district for property taxes payable in the year prior to distribution. No city or township shall receive a distribution greater than its levy for taxes payable in the year prior to distribution. The commissioner of revenue shall certify the distributions of cities and towns under this paragraph to the county auditor by September 30 of the year preceding distribution. The county auditor shall reduce the proposed and final levies of cities and towns receiving distributions by the amount of their distribution. Distributions to the cities and towns shall be made at the times provided under section 298.27.
new text begin This section is effective for levies certified in 2013 and later. new text end
new text begin (a) new text end All occupation taxes paid by persons, copartnerships, companies, joint stock companies, corporations, and associations, however or for whatever purpose organized, engaged in the business of mining or producing iron ore or other ores, when collected shall be apportioned and distributed in accordance with the Constitution of the state of Minnesota, article X, section 3, in the manner following: 90 percent shall be deposited in the state treasury and credited to the general fund of which four-ninths shall be used for the support of elementary and secondary schools; and ten percent of the proceeds of the tax imposed by this section shall be deposited in the state treasury and credited to the general fund for the general support of the university.
new text begin (b)new text end Of the moneys apportioned to the general fund by this sectionnew text begin : (1) there is annually appropriated and credited to the mining environmental and regulatory account in the special revenue fund an amount equal to that which would have been generated by a two and one-half cent tax imposed by section 298.24 on each taxable ton produced in the preceding calendar year. Money in the mining environmental and regulatory account is appropriated annually to the commissioner of natural resources to fund agency staff to work on environmental issues and provide regulatory services for ferrous and nonferrous mining operations in this state. Payment to the mining environmental and regulatory account shall be made by July 1 annually. The commissioner of natural resources shall execute an interagency agreement with the pollution control agency to assist with the provision of environmental regulatory services such as monitoring and permitting required for ferrous and nonferrous mining operations; and (2)new text end there is annually appropriated and credited to the Iron Range Resources and Rehabilitation Board account in the special revenue fund an amount equal to that which would have been generated by a 1.5 cent tax imposed by section 298.24 on each taxable ton produced in the preceding calendar year, to be expended for the purposes of section 298.22.
The money appropriated pursuant to deleted text begin this sectiondeleted text end new text begin clause (2)new text end shall be used deleted text begin (1)deleted text end new text begin (i)new text end to provide environmental development grants to local governments located within any county in region 3 as defined in governor's executive order number 60, issued on June 12, 1970, which does not contain a municipality qualifying pursuant to section 273.134, paragraph (b), or deleted text begin (2)deleted text end new text begin (ii)new text end to provide economic development loans or grants to businesses located within any such county, provided that the county board or an advisory group appointed by the county board to provide recommendations on economic development shall make recommendations to the Iron Range Resources and Rehabilitation Board regarding the loans. Payment to the Iron Range Resources and Rehabilitation Board account shall be made by May 15 annually.
new text begin (c) new text end Of the money allocated to Koochiching County, one-third must be paid to the Koochiching County Economic Development Commission.
new text begin This section is effective beginning for the 2013 production year. new text end
(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 new text begin equal to the amount of the distribution new text end to be used for the same purpose deleted text begin of at least 50 percent of the distribution based on 14.7 cents per tondeleted text end beginning with distributions in deleted text begin 2002deleted text end new text begin 2014new text end . 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 the 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 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 Iron Range Resources and Rehabilitation 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.
new text begin This section is effective beginning for the 2014 distribution. new text end
(a) For concentrate produced in deleted text begin 2001, 2002, and 2003deleted text end new text begin 2013new text end , there is imposed upon taconite and iron sulphides, and upon the mining and quarrying thereof, and upon the production of iron ore concentrate therefrom, and upon the concentrate so produced, a tax of deleted text begin $2.103deleted text end new text begin $2.56new text end per gross ton of merchantable iron ore concentrate produced therefrom. deleted text begin For concentrates produced in 2005, the tax rate is the same rate imposed for concentrates produced in 2004. For concentrates produced in 2009 and subsequent years,deleted text end The tax is also imposed upon other iron-bearing material.
(b) For concentrates produced in deleted text begin 2006deleted text end new text begin 2014new text end and subsequent years, the tax rate shall be equal to the preceding year's tax rate plus an amount equal to the preceding year's tax rate multiplied by the percentage increase in the implicit price deflator from the fourth quarter of the second preceding year to the fourth quarter of the preceding year. "Implicit price deflator" means the implicit price deflator for the gross domestic product prepared by the Bureau of Economic Analysis of the United States Department of Commerce.
(c) An additional tax is imposed equal to three cents per gross ton of merchantable iron ore concentrate for each one percent that the iron content of the product exceeds 72 percent, when dried at 212 degrees Fahrenheit.
(d) The tax on taconite and iron sulphides shall be imposed on the average of the production for the current year and the previous two years. The rate of the tax imposed will be the current year's tax rate. This clause shall not apply in the case of the closing of a taconite facility if the property taxes on the facility would be higher if this clause and section 298.25 were not applicable. The tax on other iron-bearing material shall be imposed on the current year production.
(e) If the tax or any part of the tax imposed by this subdivision is held to be unconstitutional, a tax of deleted text begin $2.103deleted text end new text begin $2.56new text end per gross ton of merchantable iron ore concentrate produced shall be imposed.
(f) Consistent with the intent of this subdivision to impose a tax based upon the weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly determine the weight of merchantable iron ore concentrate included in fluxed pellets by subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic flux additives included in the pellets from the weight of the pellets. For purposes of this paragraph, "fluxed pellets" are pellets produced in a process in which limestone, dolomite, olivine, or other basic flux additives are combined with merchantable iron ore concentrate. No subtraction from the weight of the pellets shall be allowed for binders, mineral and chemical additives other than basic flux additives, or moisture.
(g)(1) Notwithstanding any other provision of this subdivision, for the first two years of a plant's commercial production of direct reduced ore from ore mined in this state, no tax is imposed under this section. As used in this paragraph, "commercial production" is production of more than 50,000 tons of direct reduced ore in the current year or in any prior year, "noncommercial production" is production of 50,000 tons or less of direct reduced ore in any year, and "direct reduced ore" is ore that results in a product that has an iron content of at least 75 percent. For the third year of a plant's commercial production of direct reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate otherwise determined under this subdivision. For the fourth commercial production year, the rate is 50 percent of the rate otherwise determined under this subdivision; for the fifth commercial production year, the rate is 75 percent of the rate otherwise determined under this subdivision; and for all subsequent commercial production years, the full rate is imposed.
(2) Subject to clause (1), production of direct reduced ore in this state is subject to the tax imposed by this section, but if that production is not produced by a producer of taconite, iron sulfides, or other iron-bearing material, the production of taconite, iron sulfides, or other iron-bearing material, that is consumed in the production of direct reduced iron in this state is not subject to the tax imposed by this section on taconite, iron sulfides, or other iron-bearing material.
(3) Notwithstanding any other provision of this subdivision, no tax is imposed on direct reduced ore under this section during the facility's noncommercial production of direct reduced ore. The taconite or iron sulphides consumed in the noncommercial production of direct reduced ore is subject to the tax imposed by this section on taconite and iron sulphides. Three-year average production of direct reduced ore does not include production of direct reduced ore in any noncommercial year. Three-year average production for a direct reduced ore facility that has noncommercial production is the average of the commercial production of direct reduced ore for the current year and the previous two commercial years.
(4) This paragraph applies only to plants for which all environmental permits have been obtained and construction has begun before July 1, 2008.
new text begin This section is effective beginning for the 2013 production year. new text end
(a) deleted text begin 23.15deleted text end new text begin 32.15new text end cents per taxable ton, plus the increase provided in paragraph (d), less the amount that would have been computed under Minnesota Statutes 2008, section 126C.21, subdivision 4, for the current year for that district, must be allocated to qualifying school districts to be distributed, based upon the certification of the commissioner of revenue, under paragraphs (b), (c), and (f).
(b)(i) 3.43 cents per taxable ton must be distributed to the school districts in which the lands from which taconite was mined or quarried were located or within which the concentrate was produced. The distribution must be based on the apportionment formula prescribed in subdivision 2.
(ii) Four cents per taxable ton from each taconite facility must be distributed to each affected school district for deposit in a fund dedicated to building maintenance and repairs, as follows:
(1) proceeds from Keewatin Taconite or its successor are distributed to Independent School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor districts;
(2) proceeds from the Hibbing Taconite Company or its successor are distributed to Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor districts;
(3) proceeds from the Mittal Steel Company and Minntac or their successors are distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia, 2711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;
(4) proceeds from the Northshore Mining Company or its successor are distributed to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior, or their successor districts; and
(5) proceeds from United Taconite or its successor are distributed to Independent School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their successor districts.
Revenues that are required to be distributed to more than one district shall be apportioned according to the number of pupil units identified in section 126C.05, subdivision 1, enrolled in the second previous year.
(c)(i) deleted text begin 15.72deleted text end new text begin 24.72new text end cents per taxable ton, less any amount distributed under paragraph (e), shall be distributed to a group of school districts comprised of those school districts which qualify as a tax relief area under section 273.134, paragraph (b), or in which there is a qualifying municipality as defined by section 273.134, paragraph (a), in direct proportion to school district indexes as follows: for each school district, its pupil units determined under section 126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted net tax capacity per pupil unit for school districts receiving aid under this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that portion of the distribution which its index bears to the sum of the indices for all school districts that receive the distributions.
(ii) Notwithstanding clause (i), each school district that receives a distribution under sections 298.018; 298.23 to 298.28, exclusive of any amount received under this clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a tax on severed mineral values after reduction for any portion distributed to cities and towns under section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its levy reduction under section 126C.48, subdivision 8, for the second year prior to the year of the distribution shall receive a distribution equal to the difference; the amount necessary to make this payment shall be derived from proportionate reductions in the initial distribution to other school districts under clause (i). If there are insufficient tax proceeds to make the distribution provided under this paragraph in any year, money must be transferred from the taconite property tax relief account in subdivision 6, to the extent of the shortfall in the distribution.
(d)new text begin (1)new text end Any school district described in paragraph (c) where a levy increase pursuant to section 126C.17, subdivision 9, was authorized by referendum for taxes payable in 2001, shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 times the pupil units identified in section 126C.05, subdivision 1, enrolled in the second previous year or the 1983-1984 school year, whichever is greater, less the product of 1.8 percent times the district's taxable net tax capacity in deleted text begin the second previous yeardeleted text end new text begin 2011new text end .
new text begin (2) Districts qualifying under paragraph (c) must receive additional taconite aid each year equal to 22.5 percent of the amount obtained by subtracting: new text end
new text begin (i) 1.8 percent of the district's net tax capacity for 2011, from: new text end
new text begin (ii) the district's weighted average daily membership for fiscal year 2012 multiplied by the sum of: new text end
new text begin (A) $415, plus new text end
new text begin (B) the district's referendum revenue allowance for fiscal year 2013. new text end
If the total amount provided by paragraph (d) is insufficient to make the payments herein required then the entitlement of $175 per pupil unit shall be reduced uniformly so as not to exceed the funds available. Any amounts received by a qualifying school district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general education aid which the district receives pursuant to section 126C.13 or the permissible levies of the district. Any amount remaining after the payments provided in this paragraph shall be paid to the commissioner of Iron Range resources and rehabilitation who shall deposit the same in the taconite environmental protection fund and the Douglas J. Johnson economic protection trust fund as provided in subdivision 11.
Each district receiving money according to this paragraph shall reserve the lesser of the amount received under this paragraph or $25 times the number of pupil units served in the district. It may use the money for early childhood programs deleted text begin or for outcome-based learning programs that enhance the academic quality of the district's curriculum. The outcome-based learning programs must be approved by the commissioner of educationdeleted text end .
(e) There shall be distributed to any school district the amount which the school district was entitled to receive under section 298.32 in 1975.
(f) Four cents per taxable ton must be distributed to qualifying school districts according to the distribution specified in paragraph (b), clause (ii), and deleted text begin twodeleted text end new text begin 11new text end cents per taxable ton must be distributed according to the distribution specified in paragraph (c). These amounts are not subject to sections 126C.21, subdivision 4, and 126C.48, subdivision 8.
new text begin This section is effective beginning for the 2014 distribution. new text end
(a) In deleted text begin 2002deleted text end new text begin 2014new text end and thereafter, deleted text begin 33.9deleted text end new text begin 34.8new text end cents per taxable ton, less any amount required to be distributed under paragraphs (b) and (c), or section 298.2961, subdivision 5, must be allocated to St. Louis County acting as the counties' fiscal agent, to be distributed as provided in sections 273.134 to 273.136.
(b) If an electric power plant owned by and providing the primary source of power for a taxpayer mining and concentrating taconite is located in a county other than the county in which the mining and the concentrating processes are conducted, .1875 cent per taxable ton of the tax imposed and collected from such taxpayer shall be paid to the county.
(c) If an electric power plant owned by and providing the primary source of power for a taxpayer mining and concentrating taconite is located in a school district other than a school district in which the mining and concentrating processes are conducted, .4541 cent per taxable ton of the tax imposed and collected from the taxpayer shall be paid to the school district.
new text begin This section is effective beginning for the 2014 distribution. new text end
0.20 cent per taxable ton must be paid to the city of Eveleth for distribution in deleted text begin 2007 through 2011 onlydeleted text end new text begin 2013 and thereafternew text end , to be used for the support of the Hockey Hall of Fame, provided that it continues to operate in that city, and provided that the city of Eveleth certifies to the St. Louis County auditor that it has received donations for the support of the Hockey Hall of Fame from deleted text begin professional hockey organizations ordeleted text end other donors deleted text begin in an amount at least equal to the amount of the distribution under this subdivisiondeleted text end . If the Hockey Hall of Fame ceases to operate in the city of Eveleth prior to receipt of the distribution in deleted text begin eitherdeleted text end new text begin any new text end year, and the governing body of the city determines that it is unlikely to resume operation there within a six-month period, the distribution under this subdivision shall be made to the Iron Range Resources and Rehabilitation Board. deleted text begin If the amount of the distribution authorized under this subdivision exceeds the total amount of donations for the support of the Hockey Hall of Fame during the 12-month period ending 30 days before the date of the distribution, the amount by which 0.20 cent per ton exceeds the donations shall be distributed to the Iron Range Resources and Rehabilitation Board.deleted text end
(a) Except as provided in paragraph (b), beginning with distributions in 2000, the amount determined under subdivision 9 shall be increased in the same proportion as the increase in the implicit price deflator as provided in section 298.24, subdivision 1. Beginning with distributions in deleted text begin 2003deleted text end new text begin 2015new text end , the amount determined under subdivision 6, paragraph (a), shall be increased in the same proportion as the increase in the implicit price deflator as provided in section 298.24, subdivision 1.
(b) For distributions in 2005 and subsequent years, an amount equal to the increased tax proceeds attributable to the increase in the implicit price deflator as provided in section 298.24, subdivision 1, for taxes paid in 2005, except for the amount of revenue increases provided in subdivision 4, paragraph (d), is distributed to the grant and loan fund established in section 298.2961, subdivision 4.
new text begin This section is effective beginning for the 2014 distribution. new text end
new text begin The commissioner of revenue, in coordination with the commissioner of the Iron Range Resources and Rehabilitation Board, shall conduct a study of the tax relief area revenue distribution program contained in Minnesota Statutes, chapter 276A, commonly known as the Iron Range fiscal disparities program. By February 1, 2014, the commissioner of revenue shall submit a report to the chairs and ranking minority members of the house of representatives and senate tax committees consisting of the findings of the study and identification of issues for policy makers to consider. The study must analyze: new text end
new text begin (1) trends in population, property tax base, property tax rates, and contribution and distribution capacity across the region; new text end
new text begin (2) the volatility of the program's distribution and causes of the volatility; new text end
new text begin (3) the impact of state tax policy changes on the fiscal disparities program; and new text end
new text begin (4) the interaction between the program and the distribution of property tax aids and credits, taconite aid, and Iron Range Resources and Rehabilitation Board funding across the region. new text end
new text begin This section is effective June 1, 2013. new text end
new text begin For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of any excess of the balance remaining after distribution of amounts required under Minnesota Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis County acting as the fiscal agent for the recipients for the following specific purposes: new text end
new text begin (1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water supply system; new text end
new text begin (2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities required as a result of actions undertaken by United States Steel Corporation; new text end
new text begin (3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water supply system, payable upon agreement with ArcelorMittal to satisfy water permit conditions; new text end
new text begin (4) 2 cents per ton to the city of Tower for the Tower Marina; new text end
new text begin (5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer system to replace aging effluent lines and for parking lot repaving; new text end
new text begin (6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant improvements; new text end
new text begin (7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project; new text end
new text begin (8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson Intermodal Transportation Center; new text end
new text begin (9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine hockey arena renovations; new text end
new text begin (10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and Greenway Township; new text end
new text begin (11) 2.5 cents per ton to the city of Hibbing for the Memorial Building; new text end
new text begin (12) 0.7 cents per ton to the city of Chisholm for public works infrastructure; new text end
new text begin (13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary sewer extension; new text end
new text begin (14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy; new text end
new text begin (15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project; new text end
new text begin (16) 1.5 cents per ton to the city of Cook for street improvements, business park infrastructure, and a maintenance garage; new text end
new text begin (17) 0.5 cents per ton to the city of Cook for a water line project; new text end
new text begin (18) 1.8 cents per ton to the city of Eveleth to be used for Jones Street reconstruction and the city auditorium; new text end
new text begin (19) 0.5 cents for the city of Keewatin for an electrical substation and water line replacements; new text end
new text begin (20) 3.3 cents for the city of Virginia for Fourth Street North infrastructure and Franklin Park improvement; and new text end
new text begin (21) 0.5 cents per ton to the city of Grand Rapids for an economic development project. new text end
new text begin This section is effective for the 2013 distribution, and all payments must be made separately and within ten days of the date of the August 2013 payment. This section supersedes article 5, section 46, of 2013 H.F. No. 729, if enacted in the 2013 regular session of the legislature. new text end
new text begin Notwithstanding any provision of Minnesota Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and rehabilitation shall issue revenue bonds in a principal amount of $38,000,000 plus an amount sufficient to pay costs of issuance in one or more series, and thereafter may issue bonds to refund those bonds. The proceeds of the bonds must be used to pay costs of issuance and to make grants to school districts located in the taconite tax relief area defined in Minnesota Statutes, section 273.134, or the taconite assistance area defined in Minnesota Statutes, section 273.1341, to be used by the school districts to pay for building projects, such as energy efficiency, technology, infrastructure, health, safety, and maintenance improvements. Proceeds granted to School District No. 2142 must be used to reduce debt service on the building bond passed on December 8, 2009. new text end
new text begin (a) There is annually appropriated from the distribution of taconite production tax revenues under Minnesota Statues, section 298.28, prior to the calculation of the amount of the remainder under Minnesota Statutes, section 298.28, subdivision 11, an amount sufficient to pay when due the principal and interest on the bonds issued pursuant to subdivision 1. The appropriation under this section must not exceed an amount equal to ten cents per taxable ton. new text end
new text begin (b) If in any year the amount available under paragraph (a) is insufficient to pay principal and interest due on the bonds in that year, an additional amount is appropriated from the Douglas J. Johnson fund to make up the deficiency. new text end
new text begin (c) The appropriation under this subdivision terminates upon payment or maturity of the last of the bonds issued under this section. new text end
new text begin The bonds issued under this section are "debt obligations" and the commissioner of Iron Range resources and rehabilitation is a "district" for purposes of Minnesota Statutes, section 126C.55, provided that advances made under Minnesota Statutes, section 126C.55, subdivision 2, are not subject to Minnesota Statutes, section 126C.55, subdivisions 4 to 7. new text end
new text begin This section is effective the day following final enactment and applies beginning with the 2014 distribution under Minnesota Statutes, section 298.28. new text end
Funds may be invested in the following:
(1) any security which is a general obligation of any state or local government with taxing powers which is rated "A" or better by a national bond rating service;
(2) any security which is a revenue obligation of any state or local government deleted text begin with taxing powersdeleted text end which is rated "AA" or better by a national bond rating service; deleted text begin anddeleted text end
(3) a general obligation of the Minnesota housing finance agency which is a moral obligation of the state of Minnesota and is rated "A" or better by a national bond rating agencydeleted text begin .deleted text end new text begin ; andnew text end
new text begin (4) any security which is an obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to section 126C.55. new text end
Agreements or contracts for guaranteed investment contracts may be entered into if they are issued or guaranteed by United States commercial banks, domestic branches of foreign banks, United States insurance companies, or their Canadian subsidiaries, or the domestic affiliates of any of the foregoing. The credit quality of the issuer's or guarantor's short- and long-term unsecured debt must be rated in one of the two highest categories by a nationally recognized rating agency.new text begin Agreements or contracts for guaranteed investment contracts with a term of 18 months or less may be entered into regardless of the credit quality of the issuer's or guarantor's long-term unsecured debt, provided that the credit quality of the issuer's short-term unsecured debt is rated in the highest category by a nationally recognized rating agency.new text end Should the issuer's or guarantor's credit quality be downgraded below "A", the government entity must have withdrawal rights.
An implementing entity that finances an energy improvement under this section must:
(1) secure payment with a lien against the deleted text begin benefiteddeleted text end qualifying real property; and
(2) collect repayments as a special assessment as provided for in section 429.101 or by charternew text begin , provided that special assessments may be made payable in up to 20 equal annual installmentsnew text end .
If the implementing entity is an authority, the local government that authorized the authority to act as implementing entity shall impose and collect special assessments necessary to pay debt service on bonds issued by the implementing entity under subdivision 8, and shall transfer all collections of the assessments upon receipt to the authority.
new text begin This section is effective the day following final enactment. new text end
(a) A county board may, by resolution and without referendum, issue capital notes subject to the county debt limit to purchase capital equipment useful for county purposes that has an expected useful life at least equal to the term of the notes. The notes shall be payable in not more than ten years and shall be issued on terms and in a manner the board determines. A tax levy shall be made for payment of the principal and interest on the notes, in accordance with section 475.61, as in the case of bonds.
(b) For purposes of this subdivision, "capital equipment" means:
(1) public safety, ambulance, road construction or maintenance, and medical equipment; and
(2) computer hardware and software, whether bundled with machinery or equipment or unbundlednew text begin , together with application development services and training related to the use of the computer hardware or softwarenew text end .
For purposes of this section, the following terms have the meanings given.
(a) "Bonds" means an obligation as defined under section 475.51.
(b) "Capital improvement" means acquisition or betterment of public lands, buildings, or other improvements within the county for the purpose of a county courthouse, administrative building, health or social service facility, correctional facility, jail, law enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads and bridges, new text begin public works facilities, fairground buildings, and records and data storage facilities, new text end and the acquisition of development rights in the form of conservation easements under chapter 84C. An improvement must have an expected useful life of five years or more to qualify. "Capital improvement" does not include a recreation or sports facility building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility, swimming pool, exercise room or health spa), unless the building is part of an outdoor park facility and is incidental to the primary purpose of outdoor recreation.new text begin For purposes of this section, "capital improvement" includes expenditures for purposes described in this paragraph that have been incurred by a county before approval of a capital improvement plan, if such expenditures are included in a capital improvement plan approved on or before the date of the public hearing under subdivision 2 regarding issuance of bonds for such expenditures.new text end
(c) "Metropolitan county" means a county located in the seven-county metropolitan area as defined in section 473.121 or a county with a population of 90,000 or more.
(d) "Population" means the population established by the most recent of the following (determined as of the date the resolution authorizing the bonds was adopted):
(1) the federal decennial census,
(2) a special census conducted under contract by the United States Bureau of the Census, or
(3) a population estimate made either by the Metropolitan Council or by the state demographer under section 4A.02.
(e) "Qualified indoor ice arena" means a facility that meets the requirements of section 373.43.
(f) "Tax capacity" means total taxable market value, but does not include captured market value.
(a) Bonds issued by a county to finance capital improvements under an approved capital improvement plan are not subject to the election requirements of section 375.18 or 475.58. The bonds must be approved by vote of at least three-fifths of the members of the county board. In the case of a metropolitan county, the bonds must be approved by vote of at least two-thirds of the members of the county board.
(b) Before issuance of bonds qualifying under this section, the county must publish a notice of its intention to issue the bonds and the date and time of a hearing to obtain public comment on the matter. The notice must be published in the official newspaper of the county or in a newspaper of general circulation in the county. The notice must be published at least 14, but not more than 28, days before the date of the hearing.
(c) A county may issue the bonds only upon obtaining the approval of a majority of the voters voting on the question of issuing the obligations, if a petition requesting a vote on the issuance is signed by voters equal to five percent of the votes cast in the county in the lastnew text begin countynew text end general election and is filed with the county auditor within 30 days after the public hearing. deleted text begin The commissioner of revenue shall prepare a suggested form of the question to be presented at the election.deleted text end new text begin If the county elects not to submit the question to the voters, the county 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.new text end
new text begin (a) In addition to its other powers, the Dakota County Community Development Agency shall have all powers of a city under sections 428A.11 to 428A.21 in connection with housing improvement areas in Dakota County. new text end
new text begin (b) For purposes of the Dakota County Community Development Agency's exercise of the powers granted in this subdivision, references in sections 428A.11 to 428A.21 to: new text end
new text begin (1) a "mayor" shall be references to the chair of the board of commissioners of the Dakota County Community Development Agency; new text end
new text begin (2) a "council" shall be references to the board of commissioners of the Dakota County Community Development Agency; and new text end
new text begin (3) a "city clerk" shall be references to an official of the Dakota County Community Development Agency designated by the executive director of the Dakota County Community Development Agency. new text end
new text begin (c) Notwithstanding sections 428A.11, subdivision 3, and 428A.13, subdivision 1, the governing body of the Dakota County Community Development Agency may adopt a resolution, rather than an ordinance, establishing one or more housing improvement areas, and "enabling ordinance" for purposes of sections 428A.11 to 428A.21 means a resolution under this clause. new text end
new text begin (d) The community development agency (1) shall send a copy of each petition for the establishment of a housing improvement area to the city in which the proposed housing improvement area is located, and (2) may not hold the public hearing required in section 428A.13, subdivision 2, fewer than 30 days after the date on which the related application was sent pursuant to clause (1). The community development agency may not establish a housing improvement area if the applicable city council opposes the establishment by resolution adopted within 30 days after the petition required to be sent pursuant to clause (1). new text end
(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 unbundlednew text begin , together with application development services and training related to the use of the computer hardware and softwarenew text end .
(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 determines. The total principal amount of the capital notes issued in a fiscal year shall not exceed 0.03 percent of the 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.
(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 unbundlednew text begin , together with application development services and training related to the use of the computer hardware or softwarenew text end .
(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 determine.
(e) If the amount of the certificates or notes to be issued to finance any such purchase exceeds 0.25 percent of the 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.
new text begin After July 1, 2013, 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 $35,800,000 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. new text end
new text begin This section is effective the day following final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. This section is not effective if the legislature authorizes and enacts issuance authority of at least $35,800,000 in 2013 H.F. No. 1444. If the legislature authorizes and enacts issuance authority of less than $35,800,000 in 2013 H.F. No. 1444, this section prevails, regardless of order of enactment. new text end
The treasurer shall receive and be responsible for all moneys of the corporation, from whatever source derived, and the same shall be considered public funds. The treasurer shall disburse the moneys of the corporation only on orders made by the executive and operating officer, herein provided for, countersigned by such other officer or such employee of the corporation as may be authorized and directed so to do by the corporation, showing the name of the claimant and the nature of the claim. No disbursement shall be certified by such officers until the same have been approved by said commissioners at a meeting thereof. Whenever the executive director of the corporation shall certify, pursuant to action taken by the commissioners at a meeting thereof, that there are moneys and the amount thereof in the possession of the treasurer not currently needed, then the treasurer may invest said amount or any part thereof indeleted text begin :deleted text end
deleted text begin (a) Treasury bonds, certificates of indebtedness, bonds or notes of the United States of America, or bonds, notes or certificates of indebtedness of the state of Minnesota, all of which must mature not later than three years from the date of purchase. deleted text end
deleted text begin (b) Bonds, notes, debentures or other obligations issued by any agency or instrumentality of the United States or any securities guaranteed by the United States government, or for which the credit of the United States is pledged for the payment of the principal and interest thereof, all of which must mature not later than three years from date of purchase. deleted text end
deleted text begin (c) Commercial paper of prime quality, or rated among the top third of the quality categories, not applicable to defaulted paper, as defined by a nationally recognized organization which rates such securities as eligible for investment in the state employees retirement fund except that any nonbanking issuing corporation, or parent company in the case of paper issued by operating utility or finance subsidiaries, must have total assets exceeding $500,000,000. Such commercial paper may constitute no more than 30 percent of the book value of the fund at the time of purchase, and the commercial paper of any one corporation shall not constitute more than four percent of the book value of the fund at the time of such investment. deleted text end
deleted text begin (d) Any securities eligible under the preceding provisions, purchased with simultaneous repurchase agreement under which the securities will be sold to the particular dealer on a specified date at a predetermined price. In such instances, all maturities of United States government securities, or securities issued or guaranteed by the United States government or an agency thereof, may be purchased so long as any such securities which mature later than three years from the date of purchase have a current market value exceeding the purchase price by at least five percent on the date of purchase, and so long as such repurchase agreement involving securities extending beyond three years in maturity be limited to a period not exceeding 45 days. deleted text end
deleted text begin (e) Certificates of deposit issued by any official depository of the commission. The commission may purchase certificates of deposit from a depository bank in an amount exceeding that insured by federal depository insurance to the extent that those certificates are secured by collateral maintained by the bank in a manner as prescribed for investments of the State Board of Investment. deleted text end
deleted text begin (f)deleted text end securities approved for investment under section 118A.04.
Whenever it shall appear to the commissioners that any invested funds are needed for current purposes before the maturity dates of the securities held, they shall cause the executive director to so certify to the treasurer and it shall then be the duty of the treasurer to order the sale or conversion into cash of the securities in the amount so certified. All interest and profit on said investments shall be credited to and constitute a part of the funds of the commission. The treasurer shall keep an account of all moneys received and disbursed, and at least once a year, at times to be designated by the corporation, file with the secretary a financial statement of the corporation, showing in appropriate and identifiable groupings the receipts and disbursements since the last approved statements; moneys on hand and the purposes for which the same are appropriated; and shall keep an account of all securities purchased as herein provided, the funds from which purchased and the interest and profit which may have accrued thereon, and shall accompany the financial statement aforesaid with a statement setting forth such account. The corporation may pay to the treasurer from time to time compensation in such amount as it may determine to cover clerk hire to enable the treasurer to carry out duties and those required in connection with bonds issued by the corporation as in this act authorized.
Any amount returned by an entitlement issuer before July 15 shall be reallocated through the housing pool. Any amount returned on or after July 15 shall be reallocated through the unified pool. An amount returned after the last Monday in November shall be reallocated to the Minnesota Housing Finance Agency. deleted text begin Any amount of bonding authority that an entitlement issuer carries forward under federal tax law that is not permanently issued or for which the governing body of the entitlement issuer has not enacted a resolution electing to use the authority for mortgage credit certificates and has not provided a notice of issue to the commissioner before 4:30 p.m. on the last business day in December of the succeeding calendar year shall be deducted from the entitlement allocation for that entitlement issuer in the next succeeding calendar year. Any amount deducted from an entitlement issuer's allocation under this subdivision shall be reallocated to other entitlement issuers, the housing pool, the small issue pool, and the public facilities pool on a proportional basis consistent with section 474A.03.deleted text end
new text begin This section is effective the day following final enactment and applies to any bonding authority allocated in 2012 and subsequent years. new text end
The Minnesota Office of Higher Education is exempt from the 120-day issuance requirements in this chapter and may carry forward allocations for student loan bonds deleted text begin into one successive calendar yeardeleted text end , subject to carryforward notice requirements of section 474A.131, subdivision 2.
new text begin This section is effective the day following final enactment and applies to any bonding authority allocated in 2012 and subsequent years. new text end
(a) Bonding authority remaining in the unified pool on October 1 is available for single-family housing programs for cities that applied in January and received an allocation under section 474A.061, subdivision 2a, in the same calendar year. The Minnesota Housing Finance Agency shall receive an allocation for mortgage bonds pursuant to this section, minus any amounts for a city or consortium that intends to issue bonds on its own behalf under paragraph (c).
(b) The agency may issue bonds on behalf of participating cities. The agency shall request an allocation from the commissioner for all applicants who choose to have the agency issue bonds on their behalf and the commissioner shall allocate the requested amount to the agency. Allocations shall be awarded by the commissioner each Monday commencing on the first Monday in October through the last Monday in November for applications received by 4:30 p.m. on the Monday of the week preceding an allocation.
For cities who choose to have the agency issue bonds on their behalf, allocations will be made loan by loan, on a first-come, first-served basis among the cities. The agency shall submit an application fee pursuant to section 474A.03, subdivision 4, and an application deposit equal to two percent of the requested allocation to the commissioner when requesting an allocation from the unified pool. After awarding an allocation and receiving a notice of issuance for mortgage bonds issued on behalf of the participating cities, the commissioner shall transfer the application deposit to the Minnesota Housing Finance Agency.
For purposes of paragraphs (a) to (d), "city" means a county or a consortium of local government units that agree through a joint powers agreement to apply together for single-family housing programs, and has the meaning given it in section 462C.02, subdivision 6. "Agency" means the Minnesota Housing Finance Agency.
(c) Any city that received an allocation pursuant to section 474A.061, subdivision 2a, paragraph (f), in the current year that wishes to receive an additional allocation from the unified pool and issue bonds on its own behalf or pursuant to a joint powers agreement shall notify the Minnesota Housing Finance Agency by the third Monday in September. The total amount of allocation for mortgage bonds for a city choosing to issue bonds on its own behalf or through a joint powers agreement is limited to the lesser of: (i) the amount requested, or (ii) the product of the total amount available for mortgage bonds from the unified pool, multiplied by the ratio of the population of each city that applied in January and received an allocation under section 474A.061, subdivision 2a, in the same calendar year, as determined by the most recent estimate of the city's population released by the state demographer's office to the total of the population of all the cities that applied in January and received an allocation under section 474A.061, subdivision 2a, in the same calendar year. If a city choosing to issue bonds on its own behalf or through a joint powers agreement is located within a county that has also chosen to issue bonds on its own behalf or through a joint powers agreement, the city's population will be deducted from the county's population in calculating the amount of allocations under this paragraph.
The Minnesota Housing Finance Agency shall notify each city choosing to issue bonds on its own behalf or pursuant to a joint powers agreement of the amount of its allocation by October 15. Upon determining the amount of the allocation of each choosing to issue bonds on its own behalf or through a joint powers agreement, the agency shall forward a list specifying the amounts allotted to each city.
A city that chooses to issue bonds on its own behalf or through a joint powers agreement may request an allocation from the commissioner by forwarding an application with an application fee pursuant to section 474A.03, subdivision 4, and an application deposit equal to two percent of the requested amount to the commissioner no later than 4:30 p.m. on the Monday of the week preceding an allocation. Allocations to cities that choose to issue bonds on their own behalf shall be awarded by the commissioner on the first Monday after October 15 through the last Monday in November. No city may receive an allocation from the commissioner after the last Monday in November. The commissioner shall allocate the requested amount to the city or cities subject to the limitations under this subdivision.
If a city issues mortgage bonds from an allocation received under this paragraph, the issuer must provide for the recycling of funds into new loans. If the issuer is not able to provide for recycling, the issuer must notify the commissioner in writing of the reason that recycling was not possible and the reason the issuer elected not to have the Minnesota Housing Finance Agency issue the bonds. "Recycling" means the use of money generated from the repayment and prepayment of loans for further eligible loans or for the redemption of bonds and the issuance of current refunding bonds.
(d) No entitlement city or county or city in an entitlement county may apply for or be allocated authority to issue mortgage bonds or use mortgage credit certificates from the unified pool.
(e) An allocation awarded to the agency for mortgage bonds under this section may be carried forward by the agency deleted text begin into the next succeeding calendar yeardeleted text end subject to notice requirements under section 474A.131 deleted text begin and is available until the last business day in December of that succeeding calendar yeardeleted text end .
new text begin This section is effective the day following final enactment and applies to any bonding authority allocated in 2012 and subsequent years. new text end
For purposes of this section, the following terms have the meanings given.
(a) "Bonds" mean an obligation defined under section 475.51.
(b) "Capital improvement" means acquisition or betterment of public lands, buildings or other improvements for the purpose of a city hall, town hall, library, public safety facility, and public works facility. An improvement must have an expected useful life of five years or more to qualify. Capital improvement does not include light rail transit or any activity related to it, or a park, road, bridge, administrative building other than a city or town hall, or land for any of those facilities.new text begin For purposes of this section, "capital improvement" includes expenditures for purposes described in this paragraph that have been incurred by a municipality before approval of a capital improvement plan, if such expenditures are included in a capital improvement plan approved on or before the date of the public hearing under subdivision 2 regarding issuance of bonds for such expenditures.new text end
(c) "Municipality" means a home rule charter or statutory city or a town described in section 368.01, subdivision 1 or 1a.
(a) Bonds issued by a municipality to finance capital improvements under an approved capital improvements plan are not subject to the election requirements of section 475.58. The bonds must be approved by an affirmative vote of three-fifths of the members of a five-member governing body. In the case of a governing body having more or less than five members, the bonds must be approved by a vote of at least two-thirds of the members of the governing body.
(b) Before the issuance of bonds qualifying under this section, the municipality must publish a notice of its intention to issue the bonds and the date and time of the hearing to obtain public comment on the matter. The notice must be published in the official newspaper of the municipality or in a newspaper of general circulation in the municipality. Additionally, the notice may be posted on the official Web site, if any, of the municipality. The notice must be published at least 14 but not more than 28 days before the date of the hearing.
(c) A municipality may issue the bonds only after obtaining the approval of a majority of the voters voting on the question of issuing the obligations, if a petition requesting a vote on the issuance is signed by voters equal to five percent of the votes cast in the municipality in the lastnew text begin municipalnew text end general election and is filed with the clerk within 30 days after the public hearing. deleted text begin The commissioner of revenue shall prepare a suggested form of the question to be presented at the election.deleted text end new text begin 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.new text end
(a) A municipality may, without regard to the election requirement under subdivision 1, issue and sell obligations for street reconstructionnew text begin or bituminous overlaysnew text end , if the following conditions are met:
(1) the streets are reconstructed new text begin or overlaid new text end under a street reconstruction new text begin or overlay new text end plan that describes the street reconstruction new text begin or overlay new text end to be financed, the estimated costs, and any planned reconstruction new text begin or overlay new text end 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 all 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.new text begin 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.new text end
(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 new text begin and bituminous overlays new text end 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.new text begin 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.new text end
(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 new text begin and bituminous overlays new text end does not include the portion of project cost allocable to widening a street or adding curbs and gutters where none previously existed.
Subd. 2. For each of the years deleted text begin 2003 todeleted text end 2013new text begin to 2024new text end , the city of St. Paul is authorized to issue bonds in the aggregate principal amount of $20,000,000 for each year.
new text begin This section is effective the day after compliance by the governing body of the city of St. Paul with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end
new text begin Notwithstanding Minnesota Statutes, section 474A.04, subdivision 1a, bonding authority that was allocated to an entitlement issuer in 2011 and that was carried forward under federal tax law, but for which the entitlement issuer did not provide a notice of issue to the commissioner of management and budget before 4:30 p.m. on the last business day of December 2012 must not be deducted from the entitlement allocation for that entitlement issuer in 2013. new text end
new text begin This section is effective the day following final enactment and applies retroactively to rescind any reallocation by the commissioner of management and budget under Minnesota Statues, section 474A.04, subdivision 1a, of any amounts so deducted. new text end
new text begin (a) Independent School District No. 435, Waubun-Ogema-White Earth, may expand classroom space at its Ogema Elementary site using a grant of $551,532 that was awarded to the district by the Department of Human Services on August 12, 2012, pursuant to a grant agreement as provided by Minnesota Statutes, section 16A.695, subdivision 9. Notwithstanding Minnesota Statutes, section 16A.695, subdivision 6, to satisfy the match requirements of the grant agreement, the district may use a lease-purchase agreement. Notwithstanding Minnesota Statutes, section 465.71, the lease-purchase agreement must provide that the title to the lease-purchased property must be held by the district. new text end
new text begin (b) Notwithstanding Minnesota Statutes, section 126C.13, subdivision 4, if the school district enters a lease-purchase agreement to satisfy the local match under paragraph (a), but fails to make a lease-purchase payment, the commissioner of education shall reduce its general education aid under Minnesota Statutes, section 126C.13, subdivision 4, by the amount of the lease-purchase payment. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin (a) The commissioner of administration may enter into a long-term lease-purchase agreement for a term of up to 25 years, to predesign, design, construct, and equip offices, hearing rooms, and parking facilities for legislative and other functions. The facility must be located on the block bounded by Sherburne Avenue on the north, Park Street on the west, University Avenue on the south, and North Capitol Boulevard on the east. The legislative office facility must provide office accommodations for all senators and senate staff who do not have offices in the Capitol building and on-site parking facilities for all members and staff and disabled visitors to senate offices. A parking structure may also be built on the state-owned land located in the block bounded by Sherburne Avenue on the north, Park Street on the east, University Avenue on the south, and Rice Street on the west. The commissioner of management and budget may issue lease revenue bonds or certificates of participation associated with the lease-purchase agreement. The lease-purchase agreements must not be terminated, except for nonappropriation of money. The lease-purchase agreements must provide the state with a unilateral right to purchase the leased premises at specified times for specified amounts. The lease-purchase agreements are exempt from Minnesota Statutes, section 16B.24, subdivisions 6 and 6a. new text end
new text begin (b) The facilities under the lease-purchase agreement are exempt from the design competition requirement under Minnesota Statutes, section 15B.10. Notwithstanding anything to the contrary under Minnesota Statutes, sections 16C.32 and 16C.33, if the commissioner of administration elects to use a design-build delivery method to design and construct one or more facilities under this appropriation, the Capitol Area Architectural and Planning Board, in cooperation with the commissioner, shall create a selection committee to act as the board under Minnesota Statutes, sections 16C.32 and 16C.33, for the design and construction of the facilities. Notwithstanding Minnesota Statutes, section 16B.33, if the commissioner elects to contract with a primary designer to design one or more facilities under this appropriation, the Capitol Area Architectural and Planning Board, in cooperation with the commissioner, shall create a selection committee to conduct the selection process in accordance with standards under Minnesota Statutes, chapters 15B, 16B, and 16C. A selection committee created under this section must contain no more than seven members, including at least three representatives designated by the senate Committee on Rules and Administration and three representatives designated by the speaker of the house. new text end
new text begin (c) Notwithstanding any provision to the contrary in Minnesota Statutes, sections 16C.32 and 16C.33, if the commissioner of administration elects to use a design-build delivery method to design, construct, and equip one or more facilities and associated infrastructure to provide audio and video broadcast services for the Capitol building, State Office Building, and a new legislative office building, if applicable, the commissioner shall create a selection committee to act as the board under Minnesota Statutes, sections 16C.32 and 16C.33, to design, build, and equip the facilities. The selected design-builder may self-perform trade work or name an audio and video subcontractor as a member of the design-builder's team. If an audio and video subcontractor is named as a member of the design-builder's team, the design-builder is not required to competitively bid the trade work. Notwithstanding Minnesota Statutes, section 16C.33, subdivision 5, paragraph (b), after obtaining and evaluating qualifications from each design-builder, in accordance with the weighted criteria and subcriteria and procedures provided in the request for qualifications, the selection committee shall select a short list of up to five proposals. If the commissioner does not receive any proposals, the commissioner may either: new text end
new text begin (1) solicit new proposals; new text end
new text begin (2) revise the request for qualifications and thereafter solicit new proposals using the revised request for qualifications; or new text end
new text begin (3) request selection of a primary designer under Minnesota Statutes, section 16B.33, 16C.08, or 16C.095, and proceed with competitive bidding pursuant to Minnesota Statutes, sections 16C.25 to 16C.29. new text end
new text begin (d) The commissioner of administration may enter into a ground lease for state-owned property in the capitol area in conjunction with the execution of a lease-purchase agreement entered into under this section for any improvements constructed on that site. Notwithstanding the requirements of Minnesota Statutes, section 16A.695, subdivision 2, paragraph (b), the ground lease must be for a term equal to the term of the lease-purchase agreement, and must include an option to purchase the land at its then fair market value, if the improvements are not purchased by the state at the end of the term of the lease-purchase agreement, or at any earlier time that the lease-purchase agreement is terminated. new text end
new text begin (e) The commissioner of administration must not prepare final plans and specifications for any construction authorized under this section until the program plan and cost estimates for all elements necessary to complete the project have been approved by the senate Committee on Rules and Administration. new text end
new text begin (f) $3,000,000 is appropriated in fiscal year 2014 from the general fund to the commissioner of administration for predesign and design of facilities authorized under paragraph (a). This appropriation is available for expenditure the day following final enactment and until June 30, 2015. new text end
new text begin (g) The commissioner of administration may reserve a portion of money from appropriations for office space costs of the legislature to fund future repairs for facilities constructed under the authority provided in this section. Money reserved under this paragraph must be credited to a segregated account for each building in the special revenue fund and is appropriated to the commissioner to make the repairs. When the state acquires title to a building with an account established under this paragraph, the account for that building must be abolished and the balance remaining in the account must be transferred to the appropriate asset preservation and replacement account. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin $1,860,000 is appropriated from the general fund to the commissioner of administration for rent loss and relocation expenses related to the Capitol renovation project for fiscal year 2014. Notwithstanding Minnesota Statutes, section 16A.642, this appropriation is available until June 30, 2015. The base for this appropriation is $1,380,000 in fiscal year 2016, $960,000 in fiscal year 2017, and $0 after that. new text end
(a) If the commissioner of management and budget determines that the amount of revenues under section 297E.021, subdivision 2, for the next fiscal yearnew text begin , plus $20,000,000,new text end will be less than the amounts specified in section 297E.021, subdivision 3, deleted text begin paragraph (a),deleted text end clause (1), items (i) to (iii), for that fiscal year, the commissioner may implement the revenue options authorized in Laws 2012, chapter 299, article 6; provided that this section does not constitute a pledge of tax revenues as security for the payment of principal and interest on appropriation bonds issued under section 16A.695. If the commissioner determines to exercise the authority under this section for a fiscal year, the commissioner must implement the revenue options, as necessary, in the following order:
(1) a sports-themed lottery game under section 349A.20; and
(2) a tax on suites as provided under section 473J.14.
(b) Revenue raised under the authority granted by this section must be deposited in the general fund.
(c) If the commissioner determines to implement one or more of the revenue options authorized by this section, each subsequent year the commissioner must determine if the revenue is needed and will be imposed and collected for the next fiscal year. If the commissioner determines that one or more revenue options implemented for a fiscal year are not needed for a subsequent fiscal year, the commissioner must terminate them in the reverse order they were required to be implemented by paragraph (a) with the last option implemented terminated first and so forth.
(d) Before implementing a revenue source authorized under this section, the commissioner must report the intent to do so to the Legislative Commission on Planning and Fiscal Policy. The commissioner must inform the commission of determinations to continue or discontinue each revenue source for a subsequent fiscal year.
(e) The provisions of this section no longer apply after the Minnesota Sports Facilities Authority certifies to the commissioner that it has determined that the revenues of the general fund under section 297A.994, the increased revenues under chapter 297E, and other available resources of the authority provide adequate financial security for the state and the authority.
new text begin This section is effective the day following final enactment. new text end
new text begin $1,000,000 in fiscal year 2014 and each year thereafter is appropriated from the general fund to the commissioner of revenue for transfer to the agricultural project utilization account in the special revenue fund for the Agricultural Utilization Research Institute established under section 116V.01. new text end
Every provider of services capable of originating a TRS call, including cellular communications and other nonwire access services, in this state shallnew text begin , except as provided in subdivision 3a,new text end collect the charges established by the commission under subdivision 2 and transfer amounts collected to the commissioner of public safety in the same manner as provided in section 403.11, subdivision 1, paragraph (d). The commissioner of public safety must deposit the receipts in the fund established in subdivision 1.
new text begin This section is effective January 1, 2014. new text end
new text begin The fee established in subdivision 2 does not apply to prepaid wireless telecommunications services as defined in section 403.02, subdivision 17b, which are instead subject to the prepaid wireless telecommunications access Minnesota fee established in section 403.161, subdivision 1, paragraph (b). Collection, remittance, and deposit of prepaid wireless telecommunications access Minnesota fees are governed by sections 403.161 and 403.162. new text end
new text begin This section is effective January 1, 2014. new text end
For purposes of this chapter only, unless expressly stated otherwise, "Minnesota tax laws" means:
(1) the taxes, refunds, and fees administered by or paid to the commissioner under chapters 115B, 289A (except taxes imposed under sections 298.01, 298.015, and 298.24), 290, 290A, 291, 295, 297A, 297B, deleted text begin anddeleted text end 297H, new text begin and 403, new text end or any similar Indian tribal tax administered by the commissioner pursuant to any tax agreement between the state and the Indian tribal government, and includes any laws for the assessment, collection, and enforcement of those taxes, refunds, and fees; and
(2) section 273.1315.
new text begin This section is effective January 1, 2014. new text end
The commissioner may disclose return information to the Department of Public Safety for the purpose of and to the extent necessary to administer deleted text begin sectiondeleted text end new text begin sectionsnew text end 270C.725new text begin and 403.16 to 403.162new text end .
new text begin This section is effective January 1, 2014. new text end
The commissioner shall have and exercise the following powers and duties:
(1) administer and enforce the assessment and collection of taxes;
(2) make determinations, corrections, and assessments with respect to taxes, including interest, additions to taxes, and assessable penalties;
(3) use statistical or other sampling techniques consistent with generally accepted auditing standards in examining returns or records and making assessments;
(4) investigate the tax laws of other states and countries, and formulate and submit to the legislature such legislation as the commissioner may deem expedient to prevent evasions of state revenue laws and to secure just and equal taxation and improvement in the system of state revenue laws;
(5) consult and confer with the governor upon the subject of taxation, the administration of the laws in regard thereto, and the progress of the work of the department, and furnish the governor, from time to time, such assistance and information as the governor may require relating to tax matters;
(6) execute and administer any agreement with the secretary of the treasury or the Bureau of Alcohol, Tobacco, Firearms and Explosives in the Department of Justice of the United States or a representative of another state regarding the exchange of information and administration of the state revenue laws;
(7) require town, city, county, and other public officers to report information as to the collection of taxes received from licenses and other sources, and such other information as may be needful in the work of the commissioner, in such form as the commissioner may prescribe;
(8) authorize the use of unmarked motor vehicles to conduct seizures or criminal investigations pursuant to the commissioner's authority;
(9) new text begin authorize the participation in audits performed by the Multistate Tax Commission. For the purposes of chapter 270B, the Multistate Tax Commission will be considered to be a state for the purposes of auditing corporate sales, excise, and income tax returns.new text end
new text begin (10) new text end maintain toll-free telephone access for taxpayer assistance for calls from locations within the state; and
deleted text begin (10)deleted text end new text begin (11)new text end exercise other powers and authority and perform other duties required of or imposed upon the commissioner by law.
new text begin This section is effective the day following final enactment. new text end
(a) If, after the period prescribed by subdivision 2, the original notice of appeal, proof of service upon the commissioner, and filing fee are delivered by deleted text begin mail in thedeleted text end United Statesnew text begin mailnew text end to the Tax Court administrator or the court administrator of district court acting as court administrator of the Tax Court, then the date of filing is the date of the United States postmark stamped on the envelope or other appropriate wrapper in which the notice of appeal, proof of service upon the commissioner, and filing fee are mailed.
(b) This subdivision applies only if the postmark date falls within the period prescribed by subdivision 2 and the original notice of appeal, proof of service upon the commissioner, and filing fee arenew text begin , within the time prescribed by subdivision 2,new text end deposited in the mail in the United States in an envelope or other appropriate wrapper, postage prepaid, properly addressed to the Tax Court administrator or the court administrator of district court acting as court administrator of the Tax Court.
(c) Only the postmark of the United States Postal Service qualifies as proof of timely mailing under this subdivision. Private postage meters do not qualify as proof of timely filing under this subdivision. If the original notice of appeal, proof of service upon the commissioner, and filing fee are sent by United States registered mail, the date of registration is the postmark date. If the original notice of appeal, proof of service upon the commissioner, and filing fee are sent by United States certified mail and the sender's receipt is postmarked by the postal employee to whom the envelope containing the original notice of appeal, proof of service upon the commissioner, and filing fee is presented, the date of the United States postmark on the receipt is the postmark date.
(d) A reference in this section to deleted text begin mail indeleted text end the United States new text begin mail new text end must be treated as including a reference to any designated delivery service and a reference in this section to a postmark by the United States Postal Service must be treated as including a reference to any date recorded or marked by any designated delivery service in accordance with section 7502(f) of the Internal Revenue Code.
new text begin This section is effective for filings delivered by the United States Postal Service with a postmark date after August 1, 2013. new text end
For purposes of this section, "available revenues" equals the amount determined under subdivision 2new text begin , plus up to $20,000,000 each fiscal year from the taxes imposed under section 290.06, subdivision 1new text end :
(1) reduced by the following amounts paid for the fiscal year under:
(i) the appropriation to principal and interest on appropriation bonds under section 16A.965, subdivision 8;
(ii) the appropriation from the general fund to make operating expense payments under section 473J.13, subdivision 2, paragraph (b);
(iii) the appropriation for contributions to the capital reserve fund under section 473J.13, subdivision 4, paragraph (c);
(iv) the appropriations under Laws 2012, chapter 299, article 4, for administration and any successor appropriation;
(v) the reduction in revenues resulting from the sales tax exemptions under section 297A.71, subdivision 43;
(vi) reimbursements authorized by section 473J.15, subdivision 2, paragraph (d);
(vii) the compulsive gambling appropriations under section 297E.02, subdivision 3, paragraph (c), and any successor appropriation; and
(viii) the appropriation for the city of St. Paul under section 16A.726, paragraph (c); and
(2) increased by the revenue deposited in the general fund under section 297A.994, subdivision 4, clauses (1) to (3), for the fiscal year.
new text begin This section is effective the day following final enactment. new text end
new text begin "Prepaid wireless telecommunications service" means a wireless telecommunications service that allows the caller to dial 911 to access the 911 system, which service must be paid for in advance and is: new text end
new text begin (1) sold in predetermined units or dollars of which the number declines with use in a known amount; or new text end
new text begin (2) provides unlimited use for a predetermined time period. new text end
new text begin The inclusion of nontelecommunications services, including the download of digital products delivered electronically, content, and ancillary services, with a prepaid wireless telecommunications service does not preclude that service from being considered a prepaid wireless telecommunications service under this chapter. new text end
new text begin This section is effective January 1, 2014. new text end
new text begin Wireless telecommunications service means a commercial mobile radio service, as that term is defined in United States Code, title 47, section 332, subsection (d), including all broadband personal communication services, wireless radio telephone services, and geographic area specialized mobile radio licensees, that offer real-time, two-way voice service interconnected with the public switched telephone network. new text end
new text begin This section is effective January 1, 2014. new text end
"Wireless telecommunications service provider" means a provider of deleted text begin commercial mobile radio services, as that term is defined in United States Code, title 47, section 332, subsection (d), including all broadband personal communications services, wireless radio telephone services, geographic area specialized and enhanced specialized mobile radio services, and incumbent wide area specialized mobile radio licensees, that offers real-time, two-way voice service interconnected with the public switched telephone network and that is doing business in the state of Minnesotadeleted text end new text begin wireless telecommunications servicenew text end .
new text begin This section is effective January 1, 2014. new text end
The commissioner shall prepare a biennial budget for maintaining the 911 system. By December 15 of each year, the commissioner shall submit a report to the legislature detailing the expenditures for maintaining the 911 system, the 911 fees collected, the balance of the 911 fund, deleted text begin anddeleted text end the 911-related administrative expenses of the commissionernew text begin , and the most recent forecast of revenues and expenditures for the 911 emergency telecommunications service account, including a separate projection of E911 fees from prepaid wireless customers and projections of year-end fund balancesnew text end . The commissioner is authorized to expend money that has been appropriated to pay for the maintenance, enhancements, and expansion of the 911 system.
new text begin This section is effective the day following final enactment. new text end
(a) Each customer of a wireless or wire-line switched or packet-based telecommunications service provider connected to the public switched telephone network that furnishes service capable of originating a 911 emergency telephone call is assessed a fee based upon the number of wired or wireless telephone lines, or their equivalent, to cover the costs of ongoing maintenance and related improvements for trunking and central office switching equipment for 911 emergency telecommunications service, to offset administrative and staffing costs of the commissioner related to managing the 911 emergency telecommunications service program, to make distributions provided for in section 403.113, and to offset the costs, including administrative and staffing costs, incurred by the State Patrol Division of the Department of Public Safety in handling 911 emergency calls made from wireless phones.
(b) Money remaining in the 911 emergency telecommunications service account after all other obligations are paid must not cancel and is carried forward to subsequent years and may be appropriated from time to time to the commissioner to provide financial assistance to counties for the improvement of local emergency telecommunications services. The improvements may include providing access to 911 service for telecommunications service subscribers currently without access and upgrading existing 911 service to include automatic number identification, local location identification, automatic location identification, and other improvements specified in revised county 911 plans approved by the commissioner.
(c) The fee may not be less than eight cents nor more than 65 cents a month until June 30, 2008, not less than eight cents nor more than 75 cents a month until June 30, 2009, not less than eight cents nor more than 85 cents a month until June 30, 2010, and not less than eight cents nor more than 95 cents a month on or after July 1, 2010, for each customer access line or other basic access service, including trunk equivalents as designated by the Public Utilities Commission for access charge purposes and including wireless telecommunications services. With the approval of the commissioner of management and budget, the commissioner of public safety shall establish the amount of the fee within the limits specified and inform the companies and carriers of the amount to be collected. When the revenue bonds authorized under section 403.27, subdivision 1, have been fully paid or defeased, the commissioner shall reduce the fee to reflect that debt service on the bonds is no longer needed. The commissioner shall provide companies and carriers a minimum of 45 days' notice of each fee change. The fee must be the same for all customersnew text begin , except that the fee imposed under this subdivision does not apply to prepaid wireless telecommunications service, which is instead subject to the fee imposed under section 403.161, subdivision 1, paragraph (a)new text end .
(d) The fee must be collected by each wireless or wire-line telecommunications service provider subject to the fee. Fees are payable to and must be submitted to the commissioner monthly before the 25th of each month following the month of collection, except that fees may be submitted quarterly if less than $250 a month is due, or annually if less than $25 a month is due. Receipts must be deposited in the state treasury and credited to a 911 emergency telecommunications service account in the special revenue fund. The money in the account may only be used for 911 telecommunications services.
(e) This subdivision does not apply to customers of interexchange carriers.
(f) The installation and recurring charges for integrating wireless 911 calls into enhanced 911 systems are eligible for payment by the commissioner if the 911 service provider is included in the statewide design plan and the charges are made pursuant to contract.
(g) Competitive local exchanges carriers holding certificates of authority from the Public Utilities Commission are eligible to receive payment for recurring 911 services.
new text begin This section is effective January 1, 2014. new text end
new text begin No wireless communications provider may provide telecommunications services under a designation of eligible telecommunications carrier, as provided under Minnesota Rule 7811.1400, until and unless the commissioner of public safety certifies to the chair of the public utilities commission that the wireless telecommunications provider is not in arrears in amounts owed to the 911 emergency telecommunications service account in the special revenue fund. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin (a) Beginning September 1, 2013, and continuing semiannually thereafter, each wireless telecommunications service provider shall report to the commissioner, based on the mobile telephone number, both the total number of prepaid wireless telecommunications subscribers sourced to Minnesota and the total number of wireless telecommunications subscribers sourced to Minnesota. The report must be filed on the same schedule as Federal Communications Commission Form 477. new text end
new text begin (b) The commissioner shall make a standard form available to all wireless telecommunications service providers for submitting information required to compile the report required under this subdivision. new text end
new text begin (c) The information provided to the commissioner under this subdivision is considered trade secret information under section 13.37 and may only be used for purposes of administering this chapter. new text end
new text begin This section is effective January 1, 2014. new text end
new text begin For the purposes of sections 403.16 to 403.164, the terms defined in this section have the meanings given them. new text end
new text begin "Consumer" means a person who purchases prepaid wireless telecommunications service in a retail transaction. new text end
new text begin "Department" means the Department of Revenue. new text end
new text begin "Prepaid wireless E911 fee" means the fee that is required to be collected by a seller from a consumer as established in section 403.161, subdivision 1, paragraph (a). new text end
new text begin "Prepaid wireless telecommunications access Minnesota fee" means the fee that is required to be collected by a seller from a consumer as established in section 403.161, subdivision 1, paragraph (b). new text end
new text begin "Provider" means a person that provides prepaid wireless telecommunications service under a license issued by the Federal Communications Commission. new text end
new text begin "Retail transaction" means the purchase of prepaid wireless telecommunications service from a seller for any purpose other than resale. new text end
new text begin "Seller" means a person who sells prepaid wireless telecommunications service to another person. new text end
new text begin This section is effective January 1, 2014. new text end
new text begin (a) A prepaid wireless E911 fee of 80 cents per retail transaction is imposed on prepaid wireless telecommunications service until the fee is adjusted as an amount per retail transaction under subdivision 7. new text end
new text begin (b) A prepaid wireless telecommunications access Minnesota fee, in the amount of the monthly charge provided for in section 237.52, subdivision 2, is imposed on each retail transaction for prepaid wireless telecommunications service until the fee is adjusted as an amount per retail transaction under subdivision 7. new text end
new text begin The fees established under subdivision 1 are not imposed on a minimal amount of prepaid wireless telecommunications service that is sold with a prepaid wireless device and is charged a single nonitemized price, and a seller may not apply the fees to such a transaction. For purposes of this subdivision, a minimal amount of service means an amount of service denominated as either ten minutes or less or $5 or less. new text end
new text begin The prepaid wireless E911 and telecommunications access Minnesota fees must be collected by the seller from the consumer for each retail transaction occurring in this state. The amount of each fee must be combined into one amount, which must be separately stated on an invoice, receipt, or other similar document that is provided to the consumer by the seller. new text end
new text begin For purposes of this section, a retail transaction conducted in person by a consumer at a business location of the seller must be treated as occurring in this state if that business location is in this state, and any other retail transaction must be treated as occurring in this state if the retail transaction is treated as occurring in this state for purposes of the sales and use tax as specified in section 297A.669, subdivision 3, paragraph (c). new text end
new text begin The prepaid wireless E911 and telecommunications access Minnesota fees are the liability of the consumer and not of the seller or of any provider, except that the seller is liable to remit all fees as provided in section 403.162. new text end
new text begin The combined amount of the prepaid wireless E911 and telecommunications access Minnesota fees collected by a seller from a consumer must not be included in the base for measuring any tax, fee, surcharge, or other charge that is imposed by this state, any political subdivision of this state, or any intergovernmental agency. new text end
new text begin (a) The prepaid wireless E911 and telecommunications access Minnesota fee must be proportionately increased or reduced upon any change to the fee imposed under section 403.11, subdivision 1, paragraph (c), after July 1, 2013, or the fee imposed under section 237.52, subdivision 2, as applicable. new text end
new text begin (b) The department shall post notice of any fee changes on its Web site at least 30 days in advance of the effective date of the fee changes. It is the responsibility of sellers to monitor the department's Web site for notice of fee changes. new text end
new text begin (c) Fee changes are effective 60 days after the first day of the first calendar month after the commissioner of public safety or the Public Utilities Commission, as applicable, changes the fee. new text end
new text begin This section is effective January 1, 2014. new text end
new text begin Prepaid wireless E911 and telecommunications access Minnesota fees collected by sellers must be remitted to the commissioner of revenue at the times and in the manner provided by chapter 297A with respect to the general sales and use tax. The commissioner of revenue shall establish registration and payment procedures that substantially coincide with the registration and payment procedures that apply in chapter 297A. new text end
new text begin A seller may deduct and retain three percent of prepaid wireless E911 and telecommunications access Minnesota fees collected by the seller from consumers. new text end
new text begin The audit, assessment, appeal, collection, refund, penalty, interest, enforcement, and administrative provisions of chapters 270C and 289A that are applicable to the taxes imposed by chapter 297A apply to any fee imposed under section 403.161. new text end
new text begin The commissioner of revenue shall establish procedures by which a seller of prepaid wireless telecommunications service may document that a sale is not a retail transaction. These procedures must substantially coincide with the procedures for documenting sale for resale transactions as provided in chapter 297A. new text end
new text begin (a) The commissioner of revenue shall, based on the relative proportion of the prepaid wireless E911 fee and the prepaid wireless telecommunications access Minnesota fee imposed per retail transaction, divide the fees collected in corresponding proportions. Within 30 days of receipt of the collected fees, the commissioner shall: new text end
new text begin (1) deposit the proportion of the collected fees attributable to the prepaid wireless E911 fee in the 911 emergency telecommunications service account in the special revenue fund; and new text end
new text begin (2) deposit the proportion of collected fees attributable to the prepaid wireless telecommunications access Minnesota fee in the telecommunications access fund established in section 237.52, subdivision 1. new text end
new text begin (b) The department may deduct and retain an amount, not to exceed two percent of collected fees, to reimburse its direct costs of administering the collection and remittance of prepaid wireless E911 fees and prepaid wireless telecommunications access Minnesota fees. new text end
new text begin This section is effective January 1, 2014. new text end
new text begin (a) A provider or seller of prepaid wireless telecommunications service is not liable for damages to any person resulting from or incurred in connection with providing any lawful assistance in good faith to any investigative or law enforcement officer of the United States, this or any other state, or any political subdivision of this or any other state. new text end
new text begin (b) In addition to the protection from liability provided by paragraph (a), section 403.08, subdivision 11, applies to sellers and providers. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin The prepaid wireless E911 fee imposed by section 403.161 is the only E911 funding obligation imposed with respect to prepaid wireless telecommunications service in this state, and no tax, fee, surcharge, or other charge may be imposed by this state, any political subdivision of this state, or any intergovernmental agency, for E911 funding purposes, upon any provider, seller, or consumer with respect to the sale, purchase, use, or provision of prepaid wireless telecommunications service. new text end
new text begin This section is effective January 1, 2014. new text end
new text begin This section is intended to fulfill the requirement under Minnesota Statutes, section 3.192, that a bill creating, renewing, or continuing a tax expenditure provide a purpose for the tax expenditure and a standard or goal against which its effectiveness may be measured. new text end
new text begin The provisions of article 6 conforming Minnesota individual income tax to changes in federal law related to bonus depreciation and section 179 expensing are intended to simplify compliance with and administration of the individual income tax. new text end
new text begin The provisions of article 5 exempting parts and labor for certain aircraft, is intended to encourage the growth of the aviation services industry in the state. new text end
new text begin The provisions of article 6 allowing an individual income and corporate franchise tax subtraction for the amount allowed under the federal credit for railroad maintenance expenses, are intended to increase the combined federal and state tax incentives available to Class II and Class III railroads for maintaining and upgrading track in Minnesota. The standard against which effectiveness is to be measured is the additional miles of track maintained or upgraded following allowance of the state tax subtraction in addition to the existing federal tax credit. new text end
new text begin The provisions of article 6 extending the sunset date of the historic structure rehabilitation credit and modifying the effective date of the credit, are intended to encourage the preservation of historic structures in Minnesota and to create and retain jobs related to rehabilitation of historic structures in the state. The standard against which the effectiveness of the extension of the credit and modification of the effective date is to be measured is the number of jobs created through the rehabilitation of historic structures and the number of historic structures rehabilitated and placed in service. new text end
new text begin The provisions of article 6 providing a tax credit to employers of qualified interns, are intended to encourage Minnesota businesses to employ and provide valuable education and work experience to Minnesota students and foster long-term relationships between students and greater Minnesota employers. The standard against which the effectiveness of the extension of the credit is the number of students who participated in the program who were subsequently employed full time by the employer. new text end
new text begin The provisions of article 8 are intended to induce existing businesses in greater Minnesota to increase investment and expand employment in greater Minnesota. new text end
new text begin The provisions of article 8 expanding the definition of items included in repair and replacement parts of durable medical equipment and prosthetics and exempting Medicare and medicaid purchases is intended to simplify sales tax administration in this area and provide relief for sellers who cannot collect the tax under these programs. new text end
new text begin The provisions of article 8 exempting certain sales between a religious order and an affiliated institute of higher education, is intended to retain an existing sales tax exemption that exists between St. John's Abbey and St. John's University after a governing restructure between the two entities. new text end
new text begin The provisions of article 8 exempting certain purchases by qualifying critical access dental providers, is intended to assist critical access dental providers in defraying the overall cost of the services they provide to underserved communities. new text end
new text begin The provisions of article 8 exempting certain nursing homes and boarding care homes is intended to clarify that an existing exemption for these facilities is not affected by a recent property tax case related to defining nonprofit organizations engaged in charitable activities. new text end
new text begin The provisions of article 8 exempting from sales tax construction materials for various entities, are intended to increase jobs and reduce tax pyramiding by reducing the tax on inputs used to provide taxable goods and services. new text end
new text begin The provisions of article 10 exempting construction materials used in public infrastructure projects related to the destination medical center plan is intended to reduce city costs for those projects. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin (a) $950,000 is appropriated from the general fund to the commissioner of revenue in fiscal year 2014 for administering this act. This appropriation does not cancel but is available until June 30, 2015. $300,000 of this amount is added to the annual base budget. new text end
new text begin (b) $25,000 in fiscal year 2014 and $25,000 in fiscal year 2015 are appropriated from the general fund to the commissioner of employment and economic development for administering the provisions of article 10. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin Minnesota Statutes 2012, sections 290.171; 290.173; and 290.174, new text end new text begin are repealed. new text end
deleted text begin Anydeleted text end new text begin Eachnew text end town, statutory city, or school district in this state, deleted text begin now or hereafterdeleted text end new text begin at any timenew text end having deleted text begin adeleted text end new text begin an estimatednew text end market value of all its taxable propertydeleted text begin , exclusive of money and credits,deleted text end of more than $105,000,000, and having a county fair located within its corporate limits, deleted text begin is hereby authorized to aid in defrayingdeleted text end new text begin may paynew text end part of the expense of improving deleted text begin any suchdeleted text end new text begin thenew text end fairgrounddeleted text begin , by appropriating and paying overdeleted text end to the treasurer of the county owning the fairground deleted text begin such sum of moneydeleted text end , not exceeding $10,000, deleted text begin for each of the political subdivisions,deleted text end as deleted text begin thedeleted text end new text begin itsnew text end governing body deleted text begin of the town, statutory city, or school district maydeleted text end , by resolution, deleted text begin determinedeleted text end new text begin determinesnew text end to be for the best interest of the political subdivisiondeleted text begin ,deleted text end new text begin .new text end The deleted text begin sums so appropriated todeleted text end new text begin amounts paid to the county mustnew text end be used solely deleted text begin for the purpose of aiding in the improvement ofdeleted text end new text begin to improvenew text end the fairground in deleted text begin suchdeleted text end new text begin thenew text end manner deleted text begin asdeleted text end the county board deleted text begin of the county shall determinedeleted text end new text begin determinesnew text end to be for the best interest of the county.
All counties within the state, municipalities that prepare plans and official controls instead of a county, and districts are eligible for assistance under the program. Counties and districts may apply for assistance on behalf of other municipalities. In order to be eligible for financial assistance a county or municipality must agree to levy at least 0.01209 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value for agricultural land preservation and conservation activities or otherwise spend the equivalent amount of local money on those activities, or spend $15,000 of local money, whichever is less.
Unless the language or context clearly indicates that a different meaning is intended, the following words and terms, for the purposes of this chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:
(a) "Commissioner" means the commissioner of revenue.
(b) "Municipality" means:
(1) a home rule charter or statutory city;
(2) an organized town;
(3) a park district subject to chapter 398;
(4) the University of Minnesota;
(5) for purposes of the fire state aid program only, an American Indian tribal government entity located within a federally recognized American Indian reservation;
(6) for purposes of the police state aid program only, an American Indian tribal government with a tribal police department which exercises state arrest powers under section 626.90, 626.91, 626.92, or 626.93;
(7) for purposes of the police state aid program only, the Metropolitan Airports Commission; and
(8) for purposes of the police state aid program only, the Department of Natural Resources and the Department of Public Safety with respect to peace officers covered under chapter 352B.
(c) "Minnesota Firetown Premium Report" means a form prescribed by the commissioner containing space for reporting by insurers of fire, lightning, sprinkler leakage and extended coverage premiums received upon risks located or to be performed in this state less return premiums and dividends.
(d) "Firetown" means the area serviced by any municipality having a qualified fire department or a qualified incorporated fire department having a subsidiary volunteer firefighters' relief association.
(e) "new text begin Estimated new text end market value" means latest available new text begin estimated new text end market value of all property in a taxing jurisdiction, whether the property is subject to taxation, or exempt from ad valorem taxation obtained from information which appears on abstracts filed with the commissioner of revenue or equalized by the State Board of Equalization.
(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the commissioner for reporting by each fire and casualty insurer of all premiums received upon direct business received by it in this state, or by its agents for it, in cash or otherwise, during the preceding calendar year, with reference to insurance written for insuring against the perils contained in auto insurance coverages as reported in the Minnesota business schedule of the annual financial statement which each insurer is required to file with the commissioner in accordance with the governing laws or rules less return premiums and dividends.
(g) "Peace officer" means any person:
(1) whose primary source of income derived from wages is from direct employment by a municipality or county as a law enforcement officer on a full-time basis of not less than 30 hours per week;
(2) who has been employed for a minimum of six months prior to December 31 preceding the date of the current year's certification under subdivision 2, clause (b);
(3) who is sworn to enforce the general criminal laws of the state and local ordinances;
(4) who is licensed by the Peace Officers Standards and Training Board and is authorized to arrest with a warrant; and
(5) who is a member of the State Patrol retirement plan or the public employees police and fire fund.
(h) "Full-time equivalent number of peace officers providing contract service" means the integral or fractional number of peace officers which would be necessary to provide the contract service if all peace officers providing service were employed on a full-time basis as defined by the employing unit and the municipality receiving the contract service.
(i) "Retirement benefits other than a service pension" means any disbursement authorized under section 424A.05, subdivision 3, clauses (3) and (4).
(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means:
(1) for the police state aid program and police relief association financial reports:
(i) the person who was elected or appointed to the specified position or, in the absence of the person, another person who is designated by the applicable governing body;
(ii) in a park district, the secretary of the board of park district commissioners;
(iii) in the case of the University of Minnesota, the official designated by the Board of Regents;
(iv) for the Metropolitan Airports Commission, the person designated by the commission;
(v) for the Department of Natural Resources or the Department of Public Safety, the respective commissioner;
(vi) for a tribal police department which exercises state arrest powers under section 626.90, 626.91, 626.92, or 626.93, the person designated by the applicable American Indian tribal government; and
(2) for the fire state aid program and fire relief association financial reports, the person who was elected or appointed to the specified position, or, for governmental entities other than counties, if the governing body of the governmental entity designates the position to perform the function, the chief financial official of the governmental entity or the chief administrative official of the governmental entity.
(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the retirement plan established by chapter 353G.
(a) The commissioner shall apportion the fire state aid relative to the premiums reported on the Minnesota Firetown Premium Reports filed under this chapter to each municipality and/or firefighters relief association.
(b) The commissioner shall calculate an initial fire state aid allocation amount for each municipality or fire department under paragraph (c) and a minimum fire state aid allocation amount for each municipality or fire department under paragraph (d). The municipality or fire department must receive the larger fire state aid amount.
(c) The initial fire state aid allocation amount is the amount available for apportionment as fire state aid under subdivision 5, without inclusion of any additional funding amount to support a minimum fire state aid amount under section 423A.02, subdivision 3, allocated one-half in proportion to the population as shown in the last official statewide federal census for each fire town and one-half in proportion to the new text begin estimated new text end market value of each fire town, including (1) the new text begin estimated new text end market value of tax-exempt property and (2) the new text begin estimated new text end market value of natural resources lands receiving in lieu payments under sections 477A.11 to 477A.14, but excluding the new text begin estimated new text end market value of minerals. In the case of incorporated or municipal fire departments furnishing fire protection to other cities, towns, or townships as evidenced by valid fire service contracts filed with the commissioner, the distribution must be adjusted proportionately to take into consideration the crossover fire protection service. Necessary adjustments must be made to subsequent apportionments. In the case of municipalities or independent fire departments qualifying for the aid, the commissioner shall calculate the state aid for the municipality or relief association on the basis of the population and the new text begin estimated new text end market value of the area furnished fire protection service by the fire department as evidenced by duly executed and valid fire service agreements filed with the commissioner. If one or more fire departments are furnishing contracted fire service to a city, town, or township, only the population and new text begin estimated new text end market value of the area served by each fire department may be considered in calculating the state aid and the fire departments furnishing service shall enter into an agreement apportioning among themselves the percent of the population and the new text begin estimated new text end market value of each service area. The agreement must be in writing and must be filed with the commissioner.
(d) The minimum fire state aid allocation amount is the amount in addition to the initial fire state allocation amount that is derived from any additional funding amount to support a minimum fire state aid amount under section 423A.02, subdivision 3, and allocated to municipalities with volunteer firefighters relief associations or covered by the voluntary statewide lump-sum volunteer firefighter retirement plan based on the number of active volunteer firefighters who are members of the relief association as reported in the annual financial reporting for the calendar year 1993 to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or fire departments with volunteer firefighters relief associations receive in total at least a minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of 30 firefighters. If a relief association is established after calendar year 1993 and before calendar year 2000, the number of active volunteer firefighters who are members of the relief association as reported in the annual financial reporting for calendar year 1998 to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, shall be used in this determination. If a relief association is established after calendar year 1999, the number of active volunteer firefighters who are members of the relief association as reported in the first annual financial reporting submitted to the Office of the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this determination. If a relief association is terminated as a result of providing retirement coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, the number of active volunteer firefighters of the municipality covered by the statewide plan as certified by the executive director of the Public Employees Retirement Association to the commissioner and the state auditor, but not to exceed 30 active firefighters, must be used in this determination.
(e) Unless the firefighters of the applicable fire department are members of the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must be paid to the treasurer of the municipality where the fire department is located and the treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit the aid to the relief association if the relief association has filed a financial report with the treasurer of the municipality and has met all other statutory provisions pertaining to the aid apportionment. If the firefighters of the applicable fire department are members of the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must be paid to the executive director of the Public Employees Retirement Association and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.
(f) The commissioner may make rules to permit the administration of the provisions of this section.
(g) Any adjustments needed to correct prior misallocations must be made to subsequent apportionments.
(a) In computations relating to fire state aid requiring the use of population figures, only official statewide federal census figures are to be used. Increases or decreases in population disclosed by reason of any special census must not be taken into consideration.
(b) In calculations relating to fire state aid requiring the use of new text begin estimated new text end market value property figures, only the latest available new text begin estimated new text end market value property figures may be used.
In determining the net tax capacity of property within any taxing district the value of the surface of lands within any auxiliary forest therein, as determined by the county board under the provisions of section 88.48, subdivision 3, shall, for all purposes except the levying of taxes on lands within any such forest, be deemed the new text begin estimated new text end market value thereof.
After adoption of the ordinance under subdivision 2, a local government unit may annually levy a tax on all taxable property in the district for the purposes for which the tax district is established. The tax may not exceed 0.02418 percent of new text begin estimated new text end market value on taxable property located in rural towns other than urban towns, unless allowed by resolution of the town electors. The proceeds of the tax shall be paid into a fund reserved for these purposes. Any proceeds remaining in the reserve fund at the time the tax is terminated or the district is dissolved shall be transferred and irrevocably pledged to the debt service fund of the local unit to be used solely to reduce tax levies for bonded indebtedness of taxable property in the district.
(a) For the payment of principal and interest on the bonds issued under subdivision 7 and the payment required under subdivision 6, the county shall irrevocably pledge and appropriate the proceeds of a tax levied on all taxable property located within the territory of the watershed management organization or subwatershed unit for which the bonds are issued. Each year until the reserve for payment of the bonds is sufficient to retire the bonds, the county shall levy on all taxable property in the territory of the organization or unit, without respect to any statutory or other limitation on taxes, an amount of taxes sufficient to pay principal and interest on the bonds and to restore any deficiencies in reserves required to be maintained for payment of the bonds.
(b) The tax levied on rural towns other than urban towns may not exceed 0.02418 percent of deleted text begin taxabledeleted text end new text begin estimated new text end market value, unless approved by resolution of the town electors.
(c) If at any time the amounts available from the levy on property in the territory of the organization are insufficient to pay principal and interest on the bonds when due, the county shall make payment from any available funds in the county treasury.
(d) The amount of any taxes which are required to be levied outside of the territory of the watershed management organization or unit or taken from the general funds of the county to pay principal or interest on the bonds shall be reimbursed to the county from taxes levied within the territory of the watershed management organization or unit.
(a) The governing body or board of supervisors of each municipality in the district must provide the funds necessary to meet its proportion of the total cost determined by the board, provided the total funding from all municipalities in the district for the costs shall not exceed an amount equal to .00242 percent of the total deleted text begin taxabledeleted text end new text begin estimatednew text end market value within the district, unless three-fourths of the municipalities in the district pass a resolution concurring to the additional costs.
(b) The funds must be deposited in the treasury of the district in amounts and at times as the treasurer of the district requires.
(a) The governing body or board of supervisors of each municipality in the district shall provide the funds necessary to meet its proportion of the total cost to be borne by the municipalities as finally certified by the board.
(b) The municipality's funds may be raised by any means within the authority of the municipality. The municipalities may each levy a tax not to exceed .02418 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value on the taxable property located in the district to provide the funds. The levy shall be within all other limitations provided by law.
(c) The funds must be deposited into the treasury of the district in amounts and at times as the treasurer of the district requires.
(a) An organizational expense fund, consisting of an ad valorem tax levy, shall not exceed 0.01596 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value, or $60,000, whichever is less. The money in the fund shall be used for organizational expenses and preparation of the watershed management plan for projects.
(b) The managers may borrow from the affected counties up to 75 percent of the anticipated funds to be collected from the organizational expense fund levy and the counties affected may make the advancements.
(c) The advancement of anticipated funds shall be apportioned among affected counties in the same ratio as the net tax capacity of the area of the counties within the watershed district bears to the net tax capacity of the entire watershed district. If a watershed district is enlarged, an organizational expense fund may be levied against the area added to the watershed district in the same manner as provided in this subdivision.
(d) Unexpended funds collected for the organizational expense may be transferred to the administrative fund and used for the purposes of the administrative fund.
A general fund, consisting of an ad valorem tax levy, may not exceed 0.048 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value, or $250,000, whichever is less. The money in the fund shall be used for general administrative expenses and for the construction or implementation and maintenance of projects of common benefit to the watershed district. The managers may make an annual levy for the general fund as provided in section 103D.911. In addition to the annual general levy, the managers may annually levy a tax not to exceed 0.00798 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value for a period not to exceed 15 consecutive years to pay the cost attributable to the basic water management features of projects initiated by petition of a political subdivision within the watershed district or by petition of at least 50 resident owners whose property is within the watershed district.
(a) A survey and data acquisition fund is established and used only if other funds are not available to the watershed district to pay for making necessary surveys and acquiring data.
(b) The survey and data acquisition fund consists of the proceeds of a property tax that can be levied only once every five years. The levy may not exceed 0.02418 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value.
(c) The balance of the survey and data acquisition fund may not exceed $50,000.
(d) In a subsequent proceeding for a project where a survey has been made, the attributable cost of the survey as determined by the managers shall be included as a part of the cost of the work and the sum shall be repaid to the survey and data acquisition fund.
"Structurally substandard" means a building:
(1) that was inspected by the appropriate local government and cited for one or more enforceable housing, maintenance, or building code violations;
(2) in which the cited building code violations involve one or more of the following:
(i) a roof and roof framing element;
(ii) support walls, beams, and headers;
(iii) foundation, footings, and subgrade conditions;
(iv) light and ventilation;
(v) fire protection, including egress;
(vi) internal utilities, including electricity, gas, and water;
(vii) flooring and flooring elements; or
(viii) walls, insulation, and exterior envelope;
(3) in which the cited housing, maintenance, or building code violations have not been remedied after two notices to cure the noncompliance; and
(4) has uncured housing, maintenance, and building code violations, satisfaction of which would cost more than 50 percent of the deleted text begin assessor's taxabledeleted text end new text begin estimatednew text end market value for the building, excluding land value, as determined under section 273.11 for property taxes payable in the year in which the condemnation is commenced.
A local government is authorized to seek from a judge or magistrate an administrative warrant to gain access to inspect a specific building in a proposed development or redevelopment area upon showing of probable cause that a specific code violation has occurred and that the violation has not been cured, and that the owner has denied the local government access to the property. Items of evidence that may support a conclusion of probable cause may include recent fire or police inspections, housing inspection, exterior evidence of deterioration, or other similar reliable evidence of deterioration in the specific building.
The Department of Revenue must annually conduct an assessment/sales ratio study of the taxable property in each new text begin county, city, town, and new text end school district in accordance with the procedures in subdivisions 2 and 3. Based upon the results of this assessment/sales ratio study, the Department of Revenue must determine an deleted text begin aggregatedeleted text end equalized net tax capacity for the various classes of taxable property in each new text begin taxing new text end district, new text begin the aggregate of new text end which deleted text begin tax capacity shall bedeleted text end new text begin isnew text end designated as the adjusted net tax capacity. new text begin The adjusted net tax capacity must be reduced by the captured tax capacity of tax increment districts under section 469.177, subdivision 2, fiscal disparities contribution tax capacities under sections 276A.06 and 473F.08, and the tax capacity of transmission lines required to be subtracted from the local tax base under section 273.425; and increased by fiscal disparities distribution tax capacities under sections 276A.06 and 473F.08. new text end The adjusted net tax capacities shall be determined using the net tax capacity percentages in effect for the assessment year following the assessment year of the study. The Department of Revenue must make whatever estimates are necessary to account for changes in the classification system. The Department of Revenue may incur the expense necessary to make the determinations. The commissioner of revenue may reimburse any county or governmental official for requested services performed in ascertaining the adjusted net tax capacity. On or before March 15 annually, the Department of Revenue shall file with the chair of the Tax Committee of the house of representatives and the chair of the Committee on Taxes and Tax laws of the senate a report of adjusted net tax capacitiesnew text begin for school districtsnew text end . On or before June 15 annually, the Department of Revenue shall file its final report on the adjusted net tax capacitiesnew text begin for school districtsnew text end established by the previous year's assessments and the current year's net tax capacity percentages with the commissioner of education and each county auditor for thosenew text begin schoolnew text end districts for which the auditor has the responsibility for determination of local tax rates. A copy of the report so filed shall be mailed to the clerk of eachnew text begin schoolnew text end district involved and to the county assessor or supervisor of assessments of the county or counties in which eachnew text begin schoolnew text end district is located.
new text begin This section is effective the day following final enactment. new text end
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 deleted text begin taxabledeleted text end new text begin estimatednew text end market value, derived from ad valorem taxes on property or other revenues, to be paid to the historical society of its respective 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.
The district's board may levy a tax on the taxable real and personal property in the district. The ad valorem tax levy may not exceed 0.048 percent of the deleted text begin taxabledeleted text end new text begin estimatednew text end market value of the district or $400,000, whichever is less. The proceeds of the levy must be used as provided in subdivision 5. The board shall certify the levy at the times as provided under section 275.07. The board shall provide the county with whatever information is necessary to identify the property that is located within the district. If the boundaries include a part of a parcel, the entire parcel shall be included in the district. The county auditors must spread, collect, and distribute the proceeds of the tax at the same time and in the same manner as provided by law for all other property taxes.
An amount equal to a levy of 0.01596 percent on each rural county's total deleted text begin taxabledeleted text end new text begin estimatednew text end market value for the last preceding calendar year shall be computed and shall be subtracted from the county's total estimated construction costs. The result thereof shall be the money needs of the county. For the purpose of this section, "rural counties" means all counties having a population of less than 175,000.
An amount equal to a levy of 0.00967 percent on each urban county's total deleted text begin taxabledeleted text end new text begin estimatednew text end market value for the last preceding calendar year shall be computed and shall be subtracted from the county's total estimated construction costs. The result thereof shall be the money needs of the county. For the purpose of this section, "urban counties" means all counties having a population of 175,000 or more.
When the council of any statutory city or city of the third or fourth class may determine that it is necessary to build or improve any bridge or bridges, including approaches thereto, and any dam or retaining works connected therewith, upon or forming a part of streets or highways either wholly or partly within its limits, the county board shall appropriate one-half of the money as may be necessary therefor from the county road and bridge fund, not exceeding during any year one-half the amount of taxes paid into the county road and bridge fund during the preceding year, on property within the corporate limits of the city. The appropriation shall be made upon the petition of the council, which petition shall be filed by the council with the county board prior to the fixing by the board of the annual county tax levy. The county board shall determine the plans and specifications, shall let all necessary contracts, shall have charge of construction, and upon its request, warrants in payment thereof shall be issued by the county auditor, from time to time, as the construction work proceeds. Any unpaid balance may be paid or advanced by the city. On petition of the council, the appropriations of the county board, during not to exceed three successive years, may be made to apply on the construction of the same items and to repay any money advanced by the city in the construction thereof. None of the provisions of this section shall be construed to be mandatory as applied to any city whose new text begin estimated new text end market value exceeds $2,100 per capita of its population.
In any county having not less than 95 nor more than 105 full and fractional townships, and having deleted text begin adeleted text end new text begin an estimatednew text end market value of not less than $12,000,000 nor more than $21,000,000, deleted text begin exclusive of money and credits,deleted text end the county board, by resolution, may expend the funds provided in subdivision 4 in any organized deleted text begin or unorganized townshipdeleted text end new text begin town or unorganized territorynew text end or portion thereof in such county.
The county board of any county having no outstanding road and bridge bonds may issue and sell county road bonds in an amount not exceeding 0.12089 percent of the new text begin estimated new text end market value of the taxable property within the county deleted text begin exclusive of money and creditsdeleted text end , for the purpose of constructing, reconstructing, improving, or maintaining any bridge or bridges on any highway under its jurisdiction, without submitting the matter to a vote of the electors of the county.
new text begin "Estimated market value" means the assessor's determination of market value, including the effects of any orders made under section 270.12 or chapter 274, for the parcel. The provisions of section 273.032 apply for certain uses in determining the total estimated market value for the taxing jurisdiction. new text end
new text begin "Taxable market value" means estimated market value for the parcel as reduced by market value exclusions, deferments of value, or other adjustments required by law, that reduce market value before the application of class rates. new text end
new text begin (a) Unless otherwise provided, new text end for the purpose of determining any property tax levy limitation based on market valuenew text begin or any limit on net debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market valuenew text end , any qualification to receive state aid based on market value, or any state aid amount based on market value, the terms "market value," "deleted text begin taxabledeleted text end new text begin estimatednew text end market value," and "market valuation," whether equalized or unequalized, mean the deleted text begin total taxabledeleted text end new text begin estimatednew text end market value of new text begin taxable new text end property within the local unit of government before any new text begin of the following or similar new text end adjustments fornew text begin :new text end
new text begin (1) the market value exclusions under: new text end
new text begin (i) section 273.11, subdivisions 14a and 14c (vacant platted land); new text end
new text begin (ii) section 273.11, subdivision 16 (certain improvements to homestead property); new text end
new text begin (iii) section 273.11, subdivisions 19 and 20 (certain improvements to business properties); new text end
new text begin (iv) section 273.11, subdivision 21 (homestead property damaged by mold); new text end
new text begin (v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects); new text end
new text begin (vi) section 273.13, subdivision 34 (homestead of a disabled veteran or family caregiver); new text end
new text begin (vii) section 273.13, subdivision 35 (homestead market value exclusion); or new text end
new text begin (2) the deferment of value under: new text end
new text begin (i) the Minnesota Agricultural Property Tax Law, section 273.111; new text end
new text begin (ii) the Aggregate Resource Preservation Law, section 273.1115; new text end
new text begin (iii) the Minnesota Open Space Property Tax Law, section 273.112; new text end
new text begin (iv) the rural preserves property tax program, section 273.114; or new text end
new text begin (v) the Metropolitan Agricultural Preserves Act, section 473H.10; or new text end
new text begin (3) the adjustments to tax capacity for: new text end
new text begin (i)new text end tax incrementdeleted text begin ,deleted text end new text begin financing under sections 469.174 to 469.1794;new text end
new text begin (ii)new text end fiscal deleted text begin disparity,deleted text end new text begin disparities under chapter 276A or 473F; ornew text end
new text begin (iii) new text end powerline creditdeleted text begin , or wind energy values, but after the limited market adjustments under section 273.11, subdivision 1a, and after the market value exclusions of certain improvements to homestead property under section 273.11, subdivision 16deleted text end new text begin under section 273.425new text end .
new text begin (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. new text end
new text begin (c)new text end Unless otherwise provided, "market value," "deleted text begin taxabledeleted text end new text begin estimatednew text end market value," and "market valuation" for purposes of deleted text begin this paragraphdeleted text end new text begin property tax levy limitations and calculation of state aidnew text end , refer to the deleted text begin taxabledeleted text end new text begin estimatednew text end market value for the previous assessment yearnew text begin 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 equalizednew text end .
deleted text begin For the purpose of determining any net debt limit based on market value, or any limit on 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 the total taxable market value of property within the local unit of government before any adjustments for tax increment, fiscal disparity, powerline credit, or wind energy values, but after the limited market value adjustments under section 273.11, subdivision 1a, and after the market value exclusions of certain improvements to homestead property under section 273.11, subdivision 16. Unless otherwise provided, "market value," "taxable market value," and "market valuation" for purposes of this paragraph, mean the taxable market value as last finally equalized. deleted text end
new text begin (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 end
Except as provided in this section or section 273.17, subdivision 1, all property shall be valued at its market value. The market value as determined pursuant to this section shall be stated such that any amount under $100 is rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100. In estimating and determining such value, the assessor shall not adopt a lower or different standard of value because the same is to serve as a basis of taxation, nor shall the assessor adopt as a criterion of value the price for which such property would sell at a forced sale, or in the aggregate with all the property in the town or district; but the assessor shall value each article or description of property by itself, and at such sum or price as the assessor believes the same to be fairly worth in money. The assessor shall take into account the effect on the market value of property of environmental factors in the vicinity of the property. In assessing any tract or lot of real property, the value of the land, exclusive of structures and improvements, shall be determined, and also the value of all structures and improvements thereon, and the aggregate value of the property, including all structures and improvements, excluding the value of crops growing upon cultivated land. In valuing real property upon which there is a mine or quarry, it shall be valued at such price as such property, including the mine or quarry, would sell for at a fair, voluntary sale, for cash, if the material being mined or quarried is not subject to taxation under section 298.015 and the mine or quarry is not exempt from the general property tax under section 298.25. In valuing real property which is vacant, platted property shall be assessed as provided in deleted text begin subdivision 14deleted text end new text begin subdivisions 14a and 14cnew text end . All property, or the use thereof, which is taxable under section 272.01, subdivision 2, or 273.19, shall be valued at the market value of such property and not at the value of a leasehold estate in such property, or at some lesser value than its market value.
(a) When a manufactured home park is owned by a corporation or association organized under chapter 308A or 308B, and each person who owns a share or shares in the corporation or association is entitled to occupy a lot within the park, the corporation or association may claim homestead treatment for the park. Each lot must be designated by legal description or number, and each lot is limited to not more than one-half acre of land.
(b) The manufactured home park shall be entitled to homestead treatment if all of the following criteria are met:
(1) the occupant or the cooperative corporation or association is paying the ad valorem property taxes and any special assessments levied against the land and structure either directly, or indirectly through dues to the corporation or association; and
(2) the corporation or association organized under chapter 308A or 308B is wholly owned by persons having a right to occupy a lot owned by the corporation or association.
(c) A charitable corporation, organized under the laws of Minnesota with no outstanding stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt status, qualifies for homestead treatment with respect to a manufactured home park if its members hold residential participation warrants entitling them to occupy a lot in the manufactured home park.
(d) "Homestead treatment" under this subdivision means the class rate provided for class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause (5), item (ii). The homestead market value deleted text begin creditdeleted text end new text begin exclusionnew text end under section deleted text begin 273.1384deleted text end new text begin 273.13, subdivision 35,new text end does not apply and the property taxes assessed against the park shall not be included in the determination of taxes payable for rent paid under section 290A.03.
new text begin This section is effective for taxes payable in 2013 and thereafter. new text end
(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) The format and contents of a uniform homestead application shall be prescribed by the commissioner of revenue. 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.
The Social Security numbers, state or federal tax returns or tax return information, including the federal income tax schedule F required by this section, or affidavits or other proofs of the property owners and spouses submitted under this or another section to support a claim for a property tax homestead classification are private data on individuals as defined by section 13.02, subdivision 12, but, notwithstanding that section, the private data may be disclosed to the commissioner of revenue, or, for purposes of proceeding under the Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
(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 the application filed under this section will not be mailed annually and 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 the homestead application is not returned within 30 days, the county will send a second application to the present owners of record. The notice of proposed property taxes prepared under section 275.065, subdivision 3, shall reflect the property's classification. 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.
(g) At the request of the commissioner, each county must give the commissioner a list that includes the name and Social Security number of each occupant of homestead property who is the property owner, property owner's spouse, qualifying relative of a property owner, or a spouse of a qualifying relative. The commissioner shall use the information provided on the lists as appropriate under the law, including for the detection of improper claims by owners, or relatives of owners, under chapter 290A.
(h) If the commissioner finds that a property owner may be claiming a fraudulent homestead, the commissioner shall notify the appropriate counties. Within 90 days of the notification, the county assessor shall investigate to determine if the homestead classification was properly claimed. If the property owner does not qualify, the county assessor shall notify the county auditor who will determine the amount of homestead benefits that had been improperly allowed. For the purpose of this section, "homestead benefits" means the tax reduction resulting from the classification as a homestead new text begin and the homestead market value exclusion new text end under section 273.13, the taconite homestead credit under section 273.135, the deleted text begin residential homestead anddeleted text end agricultural homestead deleted text begin creditsdeleted text end new text begin creditnew text end under section 273.1384, and the supplemental homestead credit under section 273.1391.
The county auditor shall send a notice to the person who owned the affected property at the time the homestead application related to the improper homestead was filed, demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent of the homestead benefits. The person notified may appeal the county's determination by serving copies of a petition for review with county officials as provided in section 278.01 and filing proof of service as provided in section 278.01 with the Minnesota Tax Court within 60 days of the date of the notice from the county. Procedurally, the appeal is governed by the provisions in chapter 271 which apply to the appeal of a property tax assessment or levy, but without requiring any prepayment of the amount in controversy. If the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal has been filed, the county auditor shall certify the amount of taxes and penalty to the county treasurer. The county treasurer will add interest to the unpaid homestead benefits and penalty amounts at the rate provided in section 279.03 for real property taxes becoming delinquent in the calendar year during which the amount remains unpaid. Interest may be assessed for the period beginning 60 days after demand for payment was made.
If the person notified is the current owner of the property, the treasurer may add the total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes otherwise payable on the property by including the amounts on the property tax statements under section 276.04, subdivision 3. The amounts added under this paragraph to the ad valorem taxes shall include interest accrued through December 31 of the year preceding the taxes payable year for which the amounts are first added. These amounts, when added to the property tax statement, become subject to all the laws for the enforcement of real or personal property taxes for that year, and for any subsequent year.
If the person notified is not the current owner of the property, the treasurer may collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of the powers granted in sections 277.20 and 277.21 without exclusion, to enforce payment of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent tax obligations of the person who owned the property at the time the application related to the improperly allowed homestead was filed. The treasurer may relieve a prior owner of personal liability for the homestead benefits, penalty, interest, and costs, and instead extend those amounts on the tax lists against the property as provided in this paragraph to the extent that the current owner agrees in writing. On all demands, billings, property tax statements, and related correspondence, the county must list and state separately the amounts of homestead benefits, penalty, interest and costs being demanded, billed or assessed.
(i) Any amount of homestead benefits recovered by the county from the property owner shall be distributed to the county, city or town, and school district where the property is located in the same proportion that each taxing district's levy was to the total of the three taxing districts' levy for the current year. Any amount recovered attributable to taconite homestead credit shall be transmitted to the St. Louis County auditor to be deposited in the taconite property tax relief account. Any amount recovered that is attributable to supplemental homestead credit is to be transmitted to the commissioner of revenue for deposit in the general fund of the state treasury. The total amount of penalty collected must be deposited in the county general fund.
(j) If a property owner has applied for more than one homestead and the county assessors cannot determine which property should be classified as homestead, the county assessors will refer the information to the commissioner. The commissioner shall make the determination and notify the counties within 60 days.
(k) In addition to lists of homestead properties, the commissioner may ask the counties to furnish lists of all properties and the record owners. The Social Security numbers and federal identification numbers that are maintained by a county or city assessor for property tax administration purposes, and that may appear on the lists retain their classification as private or nonpublic data; but may be viewed, accessed, and used by the county auditor or treasurer of the same county for the limited purpose of assisting the commissioner in the preparation of microdata samples under section 270C.12.
(l) On or before April 30 each year beginning in 2007, each county must provide the commissioner with the following data for each parcel of homestead property by electronic means as defined in section 289A.02, subdivision 8:
(i) the property identification number assigned to the parcel for purposes of taxes payable in the current year;
(ii) the name and Social Security number of each occupant of homestead property who is the property owner, property owner's spouse, qualifying relative of a property owner, or spouse of a qualifying relative;
(iii) the classification of the property under section 273.13 for taxes payable in the current year and in the prior year;
(iv) an indication of whether the property was classified as a homestead for taxes payable in the current year because of occupancy by a relative of the owner or by a spouse of a relative;
(v) the property taxes payable as defined in section 290A.03, subdivision 13, for the current year and the prior year;
(vi) the market value of improvements to the property first assessed for tax purposes for taxes payable in the current year;
(vii) the assessor's estimated market value assigned to the property for taxes payable in the current year and the prior year;
(viii) the taxable market value assigned to the property for taxes payable in the current year and the prior year;
(ix) whether there are delinquent property taxes owing on the homestead;
(x) the unique taxing district in which the property is located; and
(xi) such other information as the commissioner decides is necessary.
The commissioner shall use the information provided on the lists as appropriate under the law, including for the detection of improper claims by owners, or relatives of owners, under chapter 290A.
new text begin This section is effective for taxes payable in 2013 and thereafter. new text end
deleted text begin (a) Gross tax capacity means the product of the appropriate gross class rates in this section and market values. deleted text end
deleted text begin (b)deleted text end Net tax capacity means the product of the appropriate net class rates in this section and new text begin taxable new text end market values.
new text begin This section is effective the day following final enactment. new text end
The amount of disparity aid certified for each taxing district within each unique taxing jurisdiction for taxes payable in the prior year shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class rates for taxes payable in the year for which aid is being computed, to (2) its tax capacity using the class rates for taxes payable in the year prior to that for which aid is being computed, both based upon new text begin taxable new text end market values for taxes payable in the year prior to that for which aid is being computed. If the commissioner determines that insufficient information is available to reasonably and timely calculate the numerator in this ratio for the first taxes payable year that a class rate change or new class rate is effective, the commissioner shall omit the effects of that class rate change or new class rate when calculating this ratio for aid payable in that taxes payable year. For aid payable in the year following a year for which such omission was made, the commissioner shall use in the denominator for the class that was changed or created, the tax capacity for taxes payable two years prior to that in which the aid is payable, based on new text begin taxable new text end market values for taxes payable in the year prior to that for which aid is being computed.
(a) Beginning with taxes payable in 1989, class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property is located in a border city that has an enterprise zone, as defined in section 469.166; (2) the property is located in a city with a population greater than 2,500 and less than 35,000 according to the 1980 decennial census; (3) the city is adjacent to a city in another state or immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city in the other state has a population of greater than 5,000 and less than 75,000 according to the 1980 decennial census.
(b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a property to 2.3 percent of the property's new text begin taxable new text end market value and (ii) the tax on class 3a property to 2.3 percent of new text begin taxable new text end market value.
(c) The county auditor shall annually certify the costs of the credits to the Department of Revenue. The department shall reimburse local governments for the property taxes forgone as the result of the credits in proportion to their total levies.
The property tax levied for any purpose under a special law that is not codified in Minnesota Statutes or a city charter provision and that is subject to a mill rate limitation imposed by the special law or city charter provision, excluding levies subject to mill rate limitations that use adjusted assessed values determined by the commissioner of revenue under section 124.2131, must not exceed the following amount for the years specified:
(a) for taxes payable in 1988, the product of the applicable mill rate limitation imposed by special law or city charter provision multiplied by the total assessed valuation of all taxable property subject to the tax as adjusted by the provisions of Minnesota Statutes 1986, sections 272.64; 273.13, subdivision 7a; and 275.49;
(b) for taxes payable in 1989, the product of (1) the property tax levy limitation for the taxes payable year 1988 determined under clause (a) multiplied by (2) an index for market valuation changes equal to the assessment year 1988 total market valuation of all taxable property subject to the tax divided by the assessment year 1987 total market valuation of all taxable property subject to the tax; and
(c) for taxes payable in 1990 and subsequent years, the product of (1) the property tax levy limitation for the previous year determined pursuant to this subdivision multiplied by (2) an index for market valuation changes equal to the total market valuation of all taxable property subject to the tax for the current assessment year divided by the total market valuation of all taxable property subject to the tax for the previous assessment year.
For the purpose of determining the property tax levy limitation for the taxes payable year deleted text begin 1988deleted text end new text begin 2014new text end and subsequent years under this subdivision, "total market valuation" means the deleted text begin totaldeleted text end new text begin estimatednew text end market deleted text begin valuationdeleted text end new text begin valuenew text end of all taxable property subject to the tax deleted text begin without valuation adjustments for fiscal disparities (chapters 276A and 473F), tax increment financing (sections 469.174 to 469.179), or powerline credit (section 273.425)deleted text end new text begin as provided under section 273.032new text end .
The difference between the correct levy and the erroneous levy shall be added to the township levy for the subsequent levy year; provided that if the amount of the difference exceeds 0.12089 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value, the excess shall be added to the township levy for the second and later subsequent levy years, not to exceed an additional levy of 0.12089 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value in any year, until the full amount of the difference has been levied. The funds collected from the corrected levies shall be used to reimburse the county for the payment required by subdivision 1.
For taxes levied in 2008 through 2010, the adjusted levy limit base is equal to the levy limit base computed under subdivision 2 or section 275.72, multiplied by:
(1) one plus the percentage growth in the implicit price deflator, but the percentage shall not be less than zero or exceed 3.9 percent;
(2) one plus a percentage equal to 50 percent of the percentage increase in the number of households, if any, for the most recent 12-month period for which data is available; and
(3) one plus a percentage equal to 50 percent of the percentage increase in the deleted text begin taxabledeleted text end new text begin estimatednew text end market value of the jurisdiction due to new construction of class 3 property, as defined in section 273.13, subdivision 4, except for state-assessed utility and railroad property, for the most recent year for which data is available.
(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 deleted text begin after reductionsdeleted text end under deleted text begin sections 273.11, subdivisions 1a and 16, and 273.13, subdivision 35deleted text end new text begin section 272.03, subdivision 15new text end ;
(4) the property's gross tax, before credits;
(5) for homestead agricultural properties, the credit under section 273.1384;
(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 Adjusted new text end market value" of real and personal property within a municipality means the deleted text begin assessor's estimateddeleted text end new text begin taxablenew text end market valuenew text begin , as defined in section 272.03,new text end of all real and personal property, including the value of manufactured housing, within the municipalitydeleted text begin . For purposes of sections 276A.01 to 276A.09, the commissioner of revenue shall annually make determinations and reports with respect to each municipality which are comparable to those it makes for school districtsdeleted text end new text begin , adjusted for sales ratios in a manner similar to the adjustments made to city and town net tax capacitiesnew text end under section 127A.48, subdivisions 1 to 6deleted text begin , in the same manner and at the same times prescribed by the subdivision. The commissioner of revenue shall annually determine, for each municipality, information comparable to that required by section 475.53, subdivision 4, for school districts, as soon as practicable after it becomes available. The commissioner of revenue shall then compute the equalized market value of property within each municipalitydeleted text end .
new text begin This section is effective the day following final enactment. new text end
"Fiscal capacity" of a municipality means its deleted text begin valuationdeleted text end new text begin adjusted market valuenew text end , determined as of January 2 of any year, divided by its population, determined as of a date in the same year.
"Average fiscal capacity" of municipalities means the sum of the deleted text begin valuationsdeleted text end new text begin adjusted market valuesnew text end of all municipalities, determined as of January 2 of any year, divided by the sum of their populations, determined as of a date in the same year.
"Net tax capacity" means thenew text begin taxablenew text end market value of real and personal property multiplied by its net tax capacity rates in section 273.13.
For the purpose of computing deleted text begin the amount or rate of any salary, aid, tax, or debt authorized, required, or limited by any provision of any law or charter, where the authorization, requirement, or limitation is related to any value or valuation of taxable property within any governmental unit, the value or net tax capacitydeleted text end new text begin fiscal capacity under section 276A.01, subdivision 12, a municipality's taxable market valuenew text end must be adjusted to reflect the deleted text begin adjustmentsdeleted text end new text begin reductionsnew text end to net tax capacity effected by subdivision 2, new text begin clause (a), new text end provided thatdeleted text begin : (1)deleted text end in determining the new text begin taxable new text end market value of commercial-industrial property or any class thereof within a deleted text begin governmental unit for any purpose other than section 276A.05deleted text end new text begin municipalitynew text end , deleted text begin (a)deleted text end the reduction required by this subdivision is that amount which bears the same proportion to the amount subtracted from the deleted text begin governmental unit'sdeleted text end new text begin municipality'snew text end net tax capacity pursuant to subdivision 2, clause (a), as the new text begin taxable new text end market value of commercial-industrial property, or such class thereof, located within the deleted text begin governmental unitdeleted text end new text begin municipalitynew text end bears to the net tax capacity of commercial-industrial property, or such class thereof, located within the deleted text begin governmental unit, and (b) the increase required by this subdivision is that amount which bears the same proportion to the amount added to the governmental unit's net tax capacity pursuant to subdivision 2, clause (b), as the market value of commercial-industrial property, or such class thereof, located within the governmental unit bears to the net tax capacity of commercial-industrial property, or such class thereof, located within the governmental unit; and (2) in determining the market value of real property within a municipality for purposes of section 276A.05, the adjustment prescribed by clause (1)(a) must be made and that prescribed by clause (1)(b) must not be madedeleted text end new text begin municipality. No adjustment shall be made to taxable market value for the increase in net tax capacity under subdivision 2, clause (b)new text end .
(a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of any county in this state in which the real property or some part is located at or before the time of filing the mortgage for record. The treasurer shall endorse receipt on the mortgage and the receipt is conclusive proof that the tax has been paid in the amount stated and authorizes any county recorder or registrar of titles to record the mortgage. Its form, in substance, shall be "registration tax hereon of ..................... dollars paid." If the mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from registration tax." In either case the receipt must be signed by the treasurer. In case the treasurer is unable to determine whether a claim of exemption should be allowed, the tax must be paid as in the case of a taxable mortgage. For documents submitted electronically, the endorsements and tax amount shall be affixed electronically and no signature by the treasurer will be required. The actual payment method must be arranged in advance between the submitter and the receiving county.
(b) The county treasurer may refund in whole or in part any mortgage registry tax overpayment if a written application by the taxpayer is submitted to the county treasurer within 3-1/2 years from the date of the overpayment. If the county has not issued a denial of the application, the taxpayer may bring an action in Tax Court in the county in which the tax was paid at any time after the expiration of six months from the time that the application was submitted. A denial of refund may be appealed within 60 days from the date of the denial by bringing an action in Tax Court in the county in which the tax was paid. The action is commenced by the serving of a petition for relief on the county treasurer, and by filing a copy with the court. The county attorney shall defend the action. The county treasurer shall notify the treasurer of each county that has or would receive a portion of the tax as paid.
(c) If the county treasurer determines a refund should be paid, or if a refund is ordered by the court, the county treasurer of each county that actually received a portion of the tax shall immediately pay a proportionate share of three percent of the refund using any available county funds. The county treasurer of each county that received, or would have received, a portion of the tax shall also pay their county's proportionate share of the remaining 97 percent of the court-ordered refund on or before the 20th day of the following month using solely the mortgage registry tax funds that would be paid to the commissioner of revenue on that date under section 287.12. If the funds on hand under this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the county treasurer of the county in which the action was brought shall file a claim with the commissioner of revenue under section 16A.48 for the remaining portion of 97 percent of the refund, and shall pay over the remaining portion upon receipt of a warrant from the state issued pursuant to the claim.
(d) When any mortgage covers real property located in more than one county in this state the total tax must be paid to the treasurer of the county where the mortgage is first presented for recording, and the payment must be receipted as provided in paragraph (a). If the principal debt or obligation secured by such a multiple county mortgage exceeds $10,000,000, the nonstate portion of the tax must be divided and paid over by the county treasurer receiving it, on or before the 20th day of each month after receipt, to the county or counties entitled in the ratio that the new text begin estimated new text end market value of the real property covered by the mortgage in each county bears to the new text begin estimated new text end market value of all the real property in this state described in the mortgage. In making the division and payment the county treasurer shall send a statement giving the description of the real property described in the mortgage and the new text begin estimated new text end market value of the part located in each county. For this purpose, the treasurer of any county may require the treasurer of any other county to certify to the former the new text begin estimated new text end market deleted text begin valuationdeleted text end new text begin valuenew text end of any tract of real property in any mortgage.
(e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The mortgagee may undertake to collect and remit the tax on behalf of the mortgagor. If the mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor, the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the amount of the tax collected for that purpose and the mortgagor is relieved of any further obligation to pay the tax as to the amount collected by the mortgagee for this purpose.
If any taxable deed or instrument describes any real property located in more than one county in this state, the total tax must be paid to the treasurer of the county where the document is first presented for recording, and the payment must be receipted as provided in section 287.08. If the net consideration exceeds $700,000, the nonstate portion of the tax must be divided and paid over by the county treasurer receiving it, on or before the 20th day of each month after receipt, to the county or counties entitled in the ratio which the new text begin estimated new text end market value of the real property covered by the document in each county bears to the new text begin estimated new text end market value of all the real property in this state described in the document. In making the division and payment the county treasurer shall send a statement to the other involved counties giving the description of the real property described in the document and the new text begin estimated new text end market value of the part located in each county. The treasurer of any county may require the treasurer of any other county to certify to the former the new text begin estimated new text end market deleted text begin valuationdeleted text end new text begin valuenew text end of any parcel of real property for this purpose.
If the executive director determines that an account in the voluntary statewide lump-sum volunteer firefighter retirement plan has insufficient assets to meet the service pensions determined payable from the account, the executive director shall certify the amount of the potential service pension shortfall to the municipality or municipalities and the municipality or municipalities shall make an additional employer contribution to the account within ten days of the certification. If more than one municipality is associated with the account, unless the municipalities agree to a different allocation, the municipalities shall allocate the additional employer contribution one-half in proportion to the population of each municipality and one-half in proportion to the new text begin estimated new text end market value of the property of each municipality.
Before buying anything under subdivision 2 that costs more than 0.24177 percent of the new text begin estimated new text end market value of the town, the town must follow this subdivision.
The town must publish in its official newspaper the board's resolution to pay for the property over time. Then a petition for an election on the contract may be filed with the clerk. The petition must be filed within ten days after the resolution is published. To require the election the petition must be signed by a number of voters equal to ten percent of the voters at the last regular town election. The contract then must be approved by a majority of those voting on the question. The question may be voted on at a regular or special election.
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 determine. If the amount of the certificates to be issued exceeds 0.25 percent of the new text begin estimated new text end 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.
The town board of any town in this state having therein a platted portion on which resides 1,200 or more people, and wherein a duly incorporated firefighters' relief association is located may each year levy a tax not to exceed 0.00806 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value for the benefit of the relief association.
The town board may issue certificates of indebtedness within debt limits to purchase fire or police equipment or ambulance equipment or street construction or maintenance equipment. The certificates shall be payable in not more than five years and be issued on terms and in the manner as the board may determine. If the amount of the certificates to be issued to finance a purchase exceeds 0.24177 percent of the new text begin estimated new text end market value of the town, deleted text begin excluding money and credits,deleted text end they shall not be issued for at least ten days after publication in the official newspaper of a town board resolution determining to issue them. 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 town election is filed with the clerk, the certificates 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. A tax levy shall be made for the payment of the principal and interest on the certificates as in the case of bonds.
(1) When the voters residing within a town have failed to elect any town officials for more than ten years continuously;
(2) when a town has failed for a period of ten years to exercise any of the powers and functions of a town;
(3) when the new text begin estimated new text end market value of a town drops to less than $165,000;
(4) when the tax delinquency of a town, exclusive of taxes that are delinquent or unpaid because they are contested in proceedings for the enforcement of taxes, amounts to 12 percent of its market value; or
(5) when the state or federal government has acquired title to 50 percent of the real estate of a town,
which facts, or any of them, may be found and determined by the resolution of the county board of the county in which the town is located, according to the official records in the office of the county auditor, the county board by resolution may declare the town, naming it, dissolved and no longer entitled to exercise any of the powers or functions of a town.
In Cass, Itasca, and St. Louis Counties, before the dissolution is effective the voters of the town shall express their approval or disapproval. The town clerk shall, upon a petition signed by a majority of the registered voters of the town, filed with the clerk at least 60 days before a regular or special town election, give notice at the same time and in the same manner of the election that the question of dissolution of the town will be submitted for determination at the election. At the election the question shall be voted upon by a separate ballot, the terms of which shall be either "for dissolution" or "against dissolution." The ballot shall be deposited in a separate ballot box and the result of the voting canvassed, certified, and returned in the same manner and at the same time as other facts and returns of the election. If a majority of the votes cast at the election are for dissolution, the town shall be dissolved. If a majority of the votes cast at the election are against dissolution, the town shall not be dissolved.
When a town is dissolved under sections 368.47 to 368.49 the county shall acquire title to any telephone company or other business conducted by the town. The business shall be operated by the board of county commissioners until it can be sold. The subscribers or patrons of the business shall have the first opportunity of purchase. If the town has any outstanding indebtedness chargeable to the business, the county auditor shall levy a tax against the property situated in the dissolved town to pay the indebtedness as it becomes due.
The boundaries of counties may be changed by taking territory from a county and attaching it to an adjoining county, and new counties may be established out of territory of one or more existing counties. A new county shall contain at least 400 square miles and have at least 4,000 inhabitants. A proposed new county must have a total deleted text begin taxabledeleted text end new text begin estimatednew text end market value of at least 35 percent of (i) the total deleted text begin taxabledeleted text end new text begin estimatednew text end market value of the existing county, or (ii) the average total deleted text begin taxabledeleted text end new text begin estimatednew text end market value of the existing counties, included in the proposition. The determination of the deleted text begin taxabledeleted text end new text begin estimatednew text end market value of a county must be made by the commissioner of revenue. An existing county shall not be reduced in area below 400 square miles, have less than 4,000 inhabitants, or have a total deleted text begin taxabledeleted text end new text begin estimatednew text end market value of less than that required of a new county.
No change in the boundaries of any county having an area of more than 2,500 square miles, whether by the creation of a new county, or otherwise, shall detach from the existing county any territory within 12 miles of the county seat.
For purposes of this section, the following terms have the meanings given.
(a) "Bonds" means an obligation as defined under section 475.51.
(b) "Capital improvement" means acquisition or betterment of public lands, buildings, or other improvements within the county for the purpose of a county courthouse, administrative building, health or social service facility, correctional facility, jail, law enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads and bridges, and the acquisition of development rights in the form of conservation easements under chapter 84C. An improvement must have an expected useful life of five years or more to qualify. "Capital improvement" does not include a recreation or sports facility building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility, swimming pool, exercise room or health spa), unless the building is part of an outdoor park facility and is incidental to the primary purpose of outdoor recreation.
(c) "Metropolitan county" means a county located in the seven-county metropolitan area as defined in section 473.121 or a county with a population of 90,000 or more.
(d) "Population" means the population established by the most recent of the following (determined as of the date the resolution authorizing the bonds was adopted):
(1) the federal decennial census,
(2) a special census conducted under contract by the United States Bureau of the Census, or
(3) a population estimate made either by the Metropolitan Council or by the state demographer under section 4A.02.
(e) "Qualified indoor ice arena" means a facility that meets the requirements of section 373.43.
deleted text begin (f) "Tax capacity" means total taxable market value, but does not include captured market value. deleted text end
A county may not issue bonds under this section if the maximum amount of principal and interest to become due in any year on all the outstanding bonds issued pursuant to this section (including the bonds to be issued) will equal or exceed 0.12 percent of deleted text begin taxabledeleted text end new text begin the estimatednew text end market value of property in the county. Calculation of the limit must be made using the deleted text begin taxabledeleted text end new text begin estimatednew text end market value for the taxes payable year in which the obligations are issued and sold. This section does not limit the authority to issue bonds under any other special or general law.
Notwithstanding any contrary law, a county board may appropriate from the general revenue fund to any nonprofit corporation a sum not to exceed 0.00604 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value to provide legal assistance to persons who are unable to afford private legal counsel.
Each county board may erect, furnish, and maintain a suitable courthouse. No indebtedness shall be created for a courthouse in excess of an amount equal to a levy of 0.04030 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value without the approval of a majority of the voters of the county voting on the question of issuing the obligation at an election.
To implement the county emergency jobs program, the county board may expend an amount equal to what would be generated by a levy of 0.01209 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value. The money to be expended may be from any available funds not otherwise earmarked.
The county board may by resolution levy a tax to provide money which shall be kept in a fund known as the county reserve building and maintenance fund. Money in the fund shall be used solely for the construction, maintenance, and equipping of county buildings that are constructed or maintained by the board. The levy shall not be subject to any limit fixed by any other law or by any board of tax levy or other corresponding body, but shall not exceed 0.02215 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value, less the amount required by chapter 475 to be levied in the year for the payment of the principal of and interest on all bonds issued pursuant to Extra Session Laws 1967, chapter 47, section 1.
(a) The county board may levy a tax on the taxable property within the county to acquire, better, and construct county library buildings and branches and to pay principal and interest on bonds issued for that purpose.
(b) The county board may by resolution adopted by a five-sevenths vote issue and sell general obligation bonds of the county in the manner provided in sections 475.60 to 475.73. The bonds shall not be subject to the limitations of sections 475.51 to 475.59, but the maturity years and amounts and interest rates of each series of bonds shall be fixed so that the maximum amount of principal and interest to become due in any year, on the bonds of that series and of all outstanding series issued by or for the purposes of libraries, shall not exceed an amount equal to 0.01612 percent of new text begin estimated new text end market value of all taxable property in the county as last finally equalized before the issuance of the new series. When the tax levy authorized in this section is collected it shall be appropriated and credited to a debt service fund for the bonds in amounts required each year in lieu of a countywide tax levy for the debt service fund under section 475.61.
To provide funds for the purposes of the Three Rivers Park District as set forth in its annual budget, in lieu of the levies authorized by any other special law for such purposes, the Board of Park District Commissioners may levy taxes on all the taxable property in the county and park district at a rate not exceeding 0.03224 percent of new text begin estimated new text end market value. Notwithstanding section 398.16, on or before October 1 of each year, after public hearing, the Board of Park District Commissioners shall adopt a budget for the ensuing year and shall determine the total amount necessary to be raised from ad valorem tax levies to meet its budget. The Board of Park District Commissioners shall submit the budget to the county board. The county board may veto or modify an item contained in the budget. If the county board determines to veto or to modify an item in the budget, it must, within 15 days after the budget was submitted by the district board, state in writing the specific reasons for its objection to the item vetoed or the reason for the modification. The Park District Board, after consideration of the county board's objections and proposed modifications, may reapprove a vetoed item or the original version of an item with respect to which a modification has been proposed, by a two-thirds majority. If the district board does not reapprove a vetoed item, the item shall be deleted from the budget. If the district board does not reapprove the original version of a modified item, the item shall be included in the budget as modified by the county board. After adoption of the final budget and no later than October 1, the superintendent of the park district shall certify to the office of the Hennepin County director of tax and public records exercising the functions of the county auditor the total amount to be raised from ad valorem tax levies to meet its budget for the ensuing year. The director of tax and public records shall add the amount of any levy certified by the district to other tax levies on the property of the county within the district for collection by the director of tax and public records with other taxes. When collected, the director shall make settlement of such taxes with the district in the same manner as other taxes are distributed to the other political subdivisions in Hennepin County.
The Anoka County Board may, by resolution adopted by a four-sevenths vote, issue and sell general obligation bonds of the county in the manner provided in chapter 475 to acquire, better, and construct county library buildings. The bonds shall not be subject to the requirements of sections 475.57 to 475.59. The maturity years and amounts and interest rates of each series of bonds shall be fixed so that the maximum amount of principal and interest to become due in any year, on the bonds of that series and of all outstanding series issued by or for the purposes of libraries, shall not exceed an amount equal to .01 percent of the deleted text begin taxabledeleted text end new text begin estimatednew text end market value of all taxable property in the county, excluding any taxable property taxed by any city for the support of any free public library. When the tax levy authorized in this section is collected, it shall be appropriated and credited to a debt service fund for the bonds. The tax levy for the debt service fund under section 475.61 shall be reduced by the amount available or reasonably anticipated to be available in the fund to make payments otherwise payable from the levy pursuant to section 475.61.
The Anoka County Board may levy a tax of not more than .01 percent of the deleted text begin taxabledeleted text end new text begin estimatednew text end market value of taxable property located within the county excluding any taxable property taxed by any city for the support of any free public library, to acquire, better, and construct county library buildings and to pay principal and interest on bonds issued for that purpose. The tax shall be disregarded in the calculation of levies or limits on levies provided by section 373.40, or other law.
When any order or warrant drawn on the treasurer is presented for payment, if there is money in the treasury for that purpose, the county treasurer shall redeem the same, and write across the entire face thereof the word "redeemed," the date of the redemption, and the treasurer's official signature. If there is not sufficient funds in the proper accounts to pay such orders they shall be numbered and registered in their order of presentation, and proper endorsement thereof shall be made on such orders and they shall be entitled to payment in like order. Such orders shall bear interest at not to exceed the rate of six percent per annum from such date of presentment. The treasurer, as soon as there is sufficient money in the treasury, shall appropriate and set apart a sum sufficient for the payment of the orders so presented and registered, and, if entitled to interest, issue to the original holder a notice that interest will cease in 30 days from the date of such notice; and, if orders thus entitled to priority of payment are not then presented, the next in order of registry may be paid until such orders are presented. No interest shall be paid on any order, except upon a warrant drawn by the county auditor for that purpose, giving the number and the date of the order on account of which the interest warrant is drawn. In any county in this state now or hereafter having deleted text begin adeleted text end new text begin an estimatednew text end market value of all taxable propertydeleted text begin , exclusive of money and credits,deleted text end of not less than $1,033,000,000, the county treasurer, in order to save payment of interest on county warrants drawn upon a fund in which there shall be temporarily insufficient money in the treasury to redeem the same, may borrow temporarily from any other fund in the county treasury in which there is a sufficient balance to care for the needs of such fund and allow a temporary loan or transfer to any other fund, and may pay such warrants out of such funds. Any such money so transferred and used in redeeming such county warrants shall be returned to the fund from which drawn as soon as money shall come in to the credit of such fund on which any such warrant was drawn and paid as aforesaid. Any county operating on a cash basis may use a combined form of warrant or order and check, which, when signed by the chair of the county board and by the auditor, is an order or warrant for the payment of the claim, and, when countersigned by the county treasurer, is a check for the payment of the amount thereof.
Except as provided in subdivision 2, 3, or 4, any nonconformity, including the lawful use or occupation of land or premises existing at the time of the adoption of an official control under this chapter, may be continued, although the use or occupation does not conform to the official control. If the nonconformity or occupancy is discontinued for a period of more than one year, or any nonconforming building or structure is destroyed by fire or other peril to the extent of 50 percent of its new text begin estimated new text end market value, any subsequent use or occupancy of the land or premises shall be a conforming use or occupancy.
Before deciding to exercise the power to tax, the authority shall give six weeks' published notice in all municipalities in the region. If a number of voters in the region equal to five percent of those who voted for candidates for governor at the last gubernatorial election present a petition within nine weeks of the first published notice to the secretary of state requesting that the matter be submitted to popular vote, it shall be submitted at the next general election. The question prepared shall be:
"Shall the regional rail authority have the power to impose a property tax?
Yes . | ||
No . " |
If a majority of those voting on the question approve or if no petition is presented within the prescribed time the authority may levy a tax at any annual rate not exceeding 0.04835 percent ofnew text begin estimatednew text end market value of all taxable property situated within the municipality or municipalities named in its organization resolution. Its recording officer shall file, on or before September 15, in the office of the county auditor of each county in which territory under the jurisdiction of the authority is located a certified copy of the board of commissioners' resolution levying the tax, and each county auditor shall assess and extend upon the tax rolls of each municipality named in the organization resolution the portion of the tax that bears the same ratio to the whole amount that the net tax capacity of taxable property in that municipality bears to the net tax capacity of taxable property in all municipalities named in the organization resolution. Collections of the tax shall be remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991, the amount levied for light rail transit purposes under this subdivision shall not exceed 75 percent of the amount levied in 1990 for light rail transit purposes under this subdivision.
(a) A county or joint powers board of a group of counties which acquires or constructs and equips or improves facilities under this chapter may, with the approval of the board of county commissioners of each county, enter into a lease agreement with a city situated within any of the counties, or a county housing and redevelopment authority established under chapter 469 or any special law. Under the lease agreement, the city or county housing and redevelopment authority shall:
(1) construct or acquire and equip or improve a facility in accordance with plans prepared by or at the request of a county or joint powers board of the group of counties and approved by the commissioner of corrections; and
(2) finance the facility by the issuance of revenue bonds.
(b) The county or joint powers board of a group of counties may lease the facility site, improvements, and equipment for a term upon rental sufficient to produce revenue for the prompt payment of the revenue bonds and all interest accruing on them. Upon completion of payment, the lessee shall acquire title. The real and personal property acquired for the facility constitutes a project and the lease agreement constitutes a revenue agreement as provided in sections 469.152 to 469.165. All proceedings by the city or county housing and redevelopment authority and the county or joint powers board shall be as provided in sections 469.152 to 469.165, with the following adjustments:
(1) no tax may be imposed upon the property;
(2) the approval of the project by the commissioner of employment and economic development is not required;
(3) the Department of Corrections shall be furnished and shall record information concerning each project as it may prescribe, in lieu of reports required on other projects to the commissioner of employment and economic development;
(4) the rentals required to be paid under the lease agreement shall not exceed in any year one-tenth of one percent of the new text begin estimated new text end market value of property within the county or group of counties as last equalized before the execution of the lease agreement;
(5) the county or group of counties shall provide for payment of all rentals due during the term of the lease agreement in the manner required in subdivision 4;
(6) no mortgage on the facilities shall be granted for the security of the bonds, but compliance with clause (5) may be enforced as a nondiscretionary duty of the county or group of counties; and
(7) the county or the joint powers board of the group of counties may sublease any part of the facilities for purposes consistent with their maintenance and operation.
(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.
(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 determines. The total principal amount of the capital notes issued in a fiscal year shall not exceed 0.03 percent of the new text begin estimated new text end 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.
The council shall have power to make such contracts as may be deemed necessary or desirable to make effective any power possessed by the council. The city may purchase personal property through a conditional sales contract and real property through a contract for deed under which contracts the seller is confined to the remedy of recovery of the property in case of nonpayment of all or part of the purchase price, which shall be payable over a period of not to exceed five years. When the contract price of property to be purchased by contract for deed or conditional sales contract exceeds 0.24177 percent of the new text begin estimated new text end market value of the city, the city may not enter into such a contract for at least ten days after publication in the official newspaper of a council resolution determining to purchase property by such a contract; 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 city election is filed with the clerk, the city may not enter into such a contract until the proposition has been approved by a majority of the votes cast on the question at a regular or special election.
(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.
(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 determine.
(e) If the amount of the certificates or notes to be issued to finance any such purchase exceeds 0.25 percent of the new text begin estimated new text end 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.
The governing body of a city may adopt an ordinance establishing a special service district. Only property that is classified under section 273.13 and used for commercial, industrial, or public utility purposes, or is vacant land zoned or designated on a land use plan for commercial or industrial use and located in the special service district, may be subject to the charges imposed by the city on the special service district. Other types of property may be included within the boundaries of the special service district but are not subject to the levies or charges imposed by the city on the special service district. If 50 percent or more of the new text begin estimated new text end market value of a parcel of property is classified under section 273.13 as commercial, industrial, or vacant land zoned or designated on a land use plan for commercial or industrial use, or public utility for the current assessment year, then the entire new text begin taxable new text end market value of the property is subject to a service charge based on net tax capacity for purposes of sections 428A.01 to 428A.10. The ordinance shall describe with particularity the area within the city to be included in the district and the special services to be furnished in the district. The ordinance may not be adopted until after a public hearing has been held on the question. Notice of the hearing shall include the time and place of hearing, a map showing the boundaries of the proposed district, and a statement that all persons owning property in the proposed district that would be subject to a service charge will be given opportunity to be heard at the hearing. Within 30 days after adoption of the ordinance under this subdivision, the governing body shall send a copy of the ordinance to the commissioner of revenue.
The council shall receive and consider the estimate required in subdivision 1 and the items of cost after notice and hearing before it or its appropriate committee as it considers necessary or expedient, and shall approve the estimate, with necessary amendments. The amounts of each item of cost estimated are then appropriated to operate, maintain, and improve the pedestrian mall during the next fiscal year. The amount of the special tax to be charged under subdivision 1, clause (3), must not, however, exceed 0.12089 percent of new text begin estimated new text end market value of taxable property in the district. The council shall make any necessary adjustment in costs of operating and maintaining the district to keep the amount of the tax within this limitation.
The governing body of a city of the first class owning a hospital may annually levy a tax to operate and maintain the hospital. The tax must not exceed 0.00806 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value.
A home rule charter or statutory city or town may establish and maintain public tourist camping grounds. The governing body thereof may acquire by lease, purchase, or gift, suitable lands located either within or without the corporate limits for use as public tourist camping grounds and provide for the equipment, operation, and maintenance of the same. The amount that may be expended for the maintenance, improvement, or operation of tourist camping grounds shall not exceed, in any year, a sum equal to 0.00806 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value.
After the acquisition of any museum, gallery, or school of arts or crafts, the board of park commissioners of the city in which it is located shall cause to be included in the annual tax levy upon all the taxable property of the county in which the museum, gallery, or school of arts or crafts is located, a tax of 0.00846 percent of new text begin estimated new text end market value. The board shall certify the levy to the county auditor and it shall be added to, and collected with and as part of, the general, real, and personal property taxes, with like penalties and interest, in case of nonpayment and default, and all provisions of law in respect to the levy, collection, and enforcement of other taxes shall, so far as applicable, be followed in respect of these taxes. All of these taxes, penalties, and interest, when collected, shall be paid to the city treasurer of the city in which is located the museum, gallery, or school of arts or crafts and credited to a fund to be known as the park museum fund, and shall be used only for the purposes specified in sections 450.23 to 450.25. Any part of the proceeds of the levy not expended for the purposes specified in section 450.24 may be used for the erection of new buildings for the same purposes.
The commission shall annually levy a tax not to exceed 0.12089 percent of new text begin estimated new text end market value on all the taxable property in the transit area at a rate sufficient to produce an amount necessary for the purposes of sections 458A.01 to 458A.15, other than the payment of principal and interest due on any revenue bonds issued pursuant to section 458A.05. Property taxes levied under this section shall be certified by the commission to the county auditors of the transit area, extended, assessed, and collected in the manner provided by law for the property taxes levied by the governing bodies of cities. The proceeds of the taxes levied under this section shall be remitted by the respective county treasurers to the treasurer of the commission, who shall credit the same to the funds of the commission for use for the purposes of sections 458A.01 to 458A.15 subject to any applicable pledges or limitations on account of tax anticipation certificates or other specific purposes. At any time after making a tax levy under this section and certifying it to the county auditors, the commission may issue general obligation certificates of indebtedness in anticipation of the collection of the taxes as provided by section 412.261.
Notwithstanding anything to the contrary contained in the charter of the city of Duluth, any ordinance thereof, or any statute applicable thereto, limiting the amount levied in any one year for general or special purposes, the city council of the city of Duluth shall each year levy a tax in an amount not to exceed 0.07253 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value, by ordinance. An ordinance fixing the levy shall take effect immediately upon its passage and approval. The proceeds of the levy shall be paid into the city treasury and deposited in the operating fund provided for in section 458A.24, subdivision 3.
Cities of the second, third, or fourth class, having at any time deleted text begin adeleted text end new text begin an estimatednew text end market value of not more than $41,000,000, deleted text begin exclusive of money and credits,deleted text end as officially equalized by the commissioner of revenue, either under home rule charter or under the laws of this state, in addition to all other powers possessed by them, hereby are authorized and empowered to receive and accept gifts and donations for the use and benefit of such cities and the inhabitants thereof upon terms and conditions to be approved by the governing bodies of such cities; and such cities are authorized to comply with and perform such terms and conditions, which may include payment to the donor or donors of interest on the value of the gift at not exceeding five percent per annum payable annually or semiannually, during the remainder of the natural life or lives of such donor or donors.
All of the territory included within the area of operation of any authority shall constitute a taxing district for the purpose of levying and collecting special benefit taxes as provided in this subdivision. All of the taxable property, both real and personal, within that taxing district shall be deemed to be benefited by projects to the extent of the special taxes levied under this subdivision. Subject to the consent by resolution of the governing body of the city in and for which it was created, an authority may levy a tax upon all taxable property within that taxing district. The tax shall be extended, spread, and included with and as a part of the general taxes for state, county, and municipal purposes by the county auditor, to be collected and enforced therewith, together with the penalty, interest, and costs. As the tax, including any penalties, interest, and costs, is collected by the county treasurer it shall be accumulated and kept in a separate fund to be known as the "housing and redevelopment project fund." The money in the fund shall be turned over to the authority at the same time and in the same manner that the tax collections for the city are turned over to the city, and shall be expended only for the purposes of sections 469.001 to 469.047. It shall be paid out upon vouchers signed by the chair of the authority or an authorized representative. The amount of the levy shall be an amount approved by the governing body of the city, but shall not exceed 0.0185 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value. The authority shall each year formulate and file a budget in accordance with the budget procedure of the city in the same manner as required of executive departments of the city or, if no budgets are required to be filed, by August 1. The amount of the tax levy for the following year shall be based on that budget.
(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 deleted text begin taxabledeleted text end new text begin estimatednew text end market value of the general jurisdiction governmental unit whose general obligation is pledged, or (2) $3,000,000. 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.
A city shall, at the request of the port authority, levy a tax in any year for the benefit of the port authority. The tax must not exceed 0.01813 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value. The amount levied must be paid by the city treasurer to the treasurer of the port authority, to be spent by the authority.
A levy made under this subdivision shall replace the mandatory city levy under subdivision 4. A seaway port authority is a special taxing district under section 275.066 and may levy a tax in any year for the benefit of the seaway port authority. The tax must not exceed 0.01813 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value. The county auditor shall distribute the proceeds of the property tax levy to the seaway port authority.
Upon request of a port authority, the port authority's city may levy a tax to be spent by and for its port authority. The tax must enable the port authority to carry out efficiently and in the public interest sections 469.048 to 469.068 to create and develop industrial development districts. The levy must not be more than 0.00282 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value. The county treasurer shall pay the proceeds of the tax to the port authority treasurer. The money may be spent by the authority in performance of its duties to create and develop industrial development districts. In spending the money the authority must judge what best serves the public interest. The levy in this subdivision is in addition to the levy in subdivision 4.
A city may, at the request of the authority, levy a tax in any year for the benefit of the authority. The tax must be not more than 0.01813 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value. The amount levied must be paid by the city treasurer to the treasurer of the authority, to be spent by the authority.
Notwithstanding any law, the county board of any county may appropriate from the general revenue fund a sum not to exceed a county levy of 0.00080 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value to carry out the purposes of this section.
Any city of the first class may expend money for city publicity purposes. The city may levy a tax, not exceeding 0.00080 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value. The proceeds of the levy shall be expended in the manner and for the city publicity purposes the council directs. The council may establish and provide for a publicity board or bureau to administer the fund, subject to the conditions and limitations the council prescribes by ordinance.
A city may assess a penalty up to one percent of thenew text begin estimatednew text end market value of real property, including any building located within the city that the city determines to be hazardous as defined in section 463.15, subdivision 3. The city shall send a written notice to the address to which the property tax statement is sent at least 90 days before it may assess the penalty. If the owner of the property has not paid the penalty or fixed the property within 90 days after receiving notice of the penalty, the penalty is considered delinquent and is increased by 25 percent each 60 days the penalty is not paid and the property remains hazardous. For the purposes of this section, a penalty that is delinquent is considered a delinquent property tax and subject to chapters 279, 280, and 281, in the same manner as delinquent property taxes.
Where a statutory city or town owns and maintains an established cemetery or burial ground, either within or without the municipal limits, the statutory city or town may, by mutual agreement with contiguous statutory cities and towns, each having deleted text begin adeleted text end new text begin an estimatednew text end market value of not less than $2,000,000, join together in the maintenance of such public cemetery or burial ground for the use of the inhabitants of each of such municipalities; and each such municipality is hereby authorized, by action of its council or governing body, to levy a tax or make an appropriation for the annual support and maintenance of such cemetery or burial ground; provided, the amount thus appropriated by each municipality shall not exceed a total of $10,000 in any one year.
This section applies to each city in which the net tax capacity of real and personal property consists in part of iron ore or lands containing taconite or semitaconite and in which the total deleted text begin taxabledeleted text end new text begin estimatednew text end market value of real and personal property exceeds $2,500,000.
The governing body of the city may create a permanent improvement and replacement fund to be maintained by an annual tax levy. The governing body may levy a tax in excess of any charter limitation for the support of the permanent improvement and replacement fund, but not exceeding the following:
(a) in cities having a population of not more than 500 inhabitants, the lesser of $20 per capita or 0.08059 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value;
(b) in cities having a population of more than 500 and less than deleted text begin 2500deleted text end new text begin 2,500new text end , the greater of $12.50 per capita or $10,000 but not exceeding 0.08059 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value;
(c) in cities having a population of deleted text begin more than 2500deleted text end new text begin 2,500 or morenew text end inhabitants, the greater of $10 per capita or $31,500 but not exceeding 0.08059 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value.
In the case of any city within the class specified innew text begin sectionnew text end 471.72 having deleted text begin adeleted text end new text begin an estimatednew text end market valuedeleted text begin , as defined in section 471.72,deleted text end in excess of $37,000,000; and in the case of any statutory city within such class having deleted text begin adeleted text end new text begin an estimatednew text end market valuedeleted text begin , as defined in section 471.72,deleted text end of less than $5,000,000; and in the case of any statutory city within such class which is governed by Laws 1933, chapter 211, or Laws 1937, chapter 356; and in the case of any statutory city within such class which is governed by Laws 1929, chapter 208, and has deleted text begin adeleted text end new text begin an estimatednew text end market value of less than $83,000,000; and in the case of any school district within such class having deleted text begin adeleted text end new text begin an estimatednew text end market valuedeleted text begin , as defined in section 471.72,deleted text end of more than $54,000,000; and in the case of all towns within said class; sections 471.71 to 471.83 apply only if the governing body of the city or statutory city, the board of the school district, or the town board of the town shall have adopted a resolution determining to issue bonds under the provisions of sections 471.71 to 471.83 or to go upon a cash basis in accordance with the provisions thereof.
The Metropolitan Council shall sell and issue the bonds in the manner provided in chapter 475, and shall have the same powers and duties as a municipality issuing bonds under that law, except that the approval of a majority of the electors shall not be required and the net debt limitations shall not apply. The terms of each series of bonds shall be fixed so that the amount of principal and interest on all outstanding and undischarged bonds, together with the bonds proposed to be issued, due in any year shall not exceed 0.01209 percent of new text begin estimated new text end market value of all taxable property in the metropolitan area as last finally equalized prior to a proposed issue. The bonds shall be secured in accordance with section 475.61, subdivision 1, and any taxes required for their payment shall be levied by the council, shall not affect the amount or rate of taxes which may be levied by the council for other purposes, shall be spread against all taxable property in the metropolitan area and shall not be subject to limitation as to rate or amount. Any taxes certified by the council to the county auditors for collection shall be reduced by the amount received by the council from the commissioner of management and budget or the federal government for the purpose of paying the principal and interest on bonds to which the levy relates. The council shall certify the fact and amount of all money so received to the county auditors, and the auditors shall reduce the levies previously made for the bonds in the manner and to the extent provided in section 475.61, subdivision 3.
As to any lands deleted text begin to bedeleted text end detached from any school district under deleted text begin the provisions hereofdeleted text end new text begin section 473.625new text end , notwithstanding deleted text begin such prospectivedeleted text end new text begin thenew text end detachment, the new text begin estimated market new text end value of deleted text begin suchdeleted text end new text begin the detachednew text end lands and deleted text begin the net tax capacity ofdeleted text end taxable properties deleted text begin nowdeleted text end located deleted text begin therein or thereon shall be anddeleted text end new text begin on the lands on the date of the detachmentnew text end constitute deleted text begin from and after the date of the enactment hereofdeleted text end a part of the new text begin estimated market new text end value of properties deleted text begin upon the basis of which suchdeleted text end new text begin used to calculate the net debt limit of thenew text end school district deleted text begin may issue its bonds,deleted text end new text begin .new text end The value of deleted text begin suchdeleted text end new text begin thenew text end lands deleted text begin for such purpose to bedeleted text end new text begin and other taxable properties for purposes of the school district's net debt limit arenew text end 33-1/3 percent of the new text begin estimated new text end market value thereof as determined and certified by deleted text begin saiddeleted text end new text begin thenew text end assessor to deleted text begin saiddeleted text end new text begin thenew text end school district, and deleted text begin it shall be the duty of suchdeleted text end new text begin thenew text end assessor annually on or before the tenth day of October deleted text begin from and after the passage hereof, to sodeleted text end new text begin of each year, shallnew text end determine and certifynew text begin that valuenew text end ; provided, however, that the value of deleted text begin suchdeleted text end new text begin thenew text end detached lands and deleted text begin suchdeleted text end taxable properties shall never exceed 20 percent of the new text begin estimated market new text end value of all properties deleted text begin constituting and making up the basis aforesaiddeleted text end new text begin used to calculate the net debt limit of the school districtnew text end .
In any budget certified by the commissioners under this section, the amount included for operation and maintenance shall not exceed an amount which, when extended against the property taxable therefor under section 473.621, subdivision 5, will require a levy at a rate of 0.00806 percent of new text begin estimated new text end market value. Taxes levied by the corporation shall not affect the amount or rate of taxes which may be levied by any other local government unit within the metropolitan area under the provisions of any charter.
Nothing herein shall prevent the commission from levying a tax not to exceed 0.00121 percent of new text begin estimated new text end market value on taxable property within its taxing jurisdiction, in addition to any levies found necessary for the debt service fund authorized by section 473.671. Nothing herein shall prevent the levy and appropriation for purposes of the commission of any other tax on property or on any income, transaction, or privilege, when and if authorized by law. All collections of any taxes so levied shall be included in the revenues appropriated for the purposes referred to in this section, unless otherwise provided in the law authorizing the levies; but no covenant as to the continuance or as to the rate and amount of any such levy shall be made with the holders of the commission's bonds unless specifically authorized by law.
The taxes levied against the property of the metropolitan area in any one year shall not exceed 0.00806 percent of deleted text begin taxabledeleted text end new text begin estimatednew text end market value, exclusive of taxes levied to pay the principal or interest on any bonds or indebtedness of the city issued under Laws 1943, chapter 500, and exclusive of any taxes levied to pay the share of the city for payments on bonded indebtedness of the corporation provided for in Laws 1943, chapter 500. The levy of taxes authorized in Laws 1943, chapter 500, shall be in addition to the maximum rate allowed to be levied to defray the cost of government under the provisions of the charter of any city affected by Laws 1943, chapter 500.
(a) The commission may levy a tax on all taxable property in the district as defined in section 473.702 to provide funds for the purposes of sections 473.701 to 473.716. The tax shall not exceed the property tax levy limitation determined in this subdivision. A participating county may agree to levy an additional tax to be used by the commission for the purposes of sections 473.701 to 473.716 but the sum of the county's and commission's taxes may not exceed the county's proportionate share of the property tax levy limitation determined under this subdivision based on the ratio of its total net tax capacity to the total net tax capacity of the entire district as adjusted by section 270.12, subdivision 3. The auditor of each county in the district shall add the amount of the levy made by the district to other taxes of the county for collection by the county treasurer with other taxes. When collected, the county treasurer shall make settlement of the tax with the district in the same manner as other taxes are distributed to political subdivisions. No county shall levy any tax for mosquito, disease vectoring tick, and black gnat (Simuliidae) control except under this section. The levy shall be in addition to other taxes authorized by law.
(b) The property tax levied by the Metropolitan Mosquito Control Commission shall not exceed the product of (i) the commission's property tax levy limitation for the previous year determined under this subdivision multiplied by (ii) an index for market valuation changes equal to the total new text begin estimated new text end market deleted text begin valuationdeleted text end new text begin valuenew text end of all taxable property for the current tax payable year located within the district plus any area that has been added to the district since the previous year, divided by the total new text begin estimated new text end market deleted text begin valuationdeleted text end new text begin valuenew text end of all taxable property located within the district for the previous taxes payable year.
deleted text begin (c) For the purpose of determining the commission's property tax levy limitation under this subdivision, "total market valuation" means the total market valuation of all taxable property within the district without valuation adjustments for fiscal disparities (chapter 473F), tax increment financing (sections 469.174 to 469.179), and high voltage transmission lines (section 273.425). deleted text end
"new text begin Adjusted new text end market value" of real and personal property within a municipality means the deleted text begin assessor's estimateddeleted text end new text begin taxablenew text end market valuenew text begin , as defined in section 272.03,new text end of all real and personal property, including the value of manufactured housing, within the municipalitynew text begin , adjusted for sales ratios in a manner similar to the adjustments made to city and town net tax capacitiesnew text end deleted text begin . For purposes of sections 473F.01 to 473F.13, the commissioner of revenue shall annually make determinations and reports with respect to each municipality which are comparable to those it makes for school districtsdeleted text end under section 127A.48, subdivisions 1 to 6deleted text begin , in the same manner and at the same times as are prescribed by the subdivisions. The commissioner of revenue shall annually determine, for each municipality, information comparable to that required by section 475.53, subdivision 4, for school districts, as soon as practicable after it becomes available. The commissioner of revenue shall then compute the equalized market value of property within each municipality using the aggregate sales ratios from the Department of Revenue's sales ratio studydeleted text end .
"Fiscal capacity" of a municipality means its deleted text begin valuationdeleted text end new text begin adjusted market valuenew text end , determined as of January 2 of any year, divided by its population, determined as of a date in the same year.
"Average fiscal capacity" of municipalities means the sum of the deleted text begin valuationsdeleted text end new text begin adjusted market valuesnew text end of all municipalities, determined as of January 2 of any year, divided by the sum of their populations, determined as of a date in the same year.
"Net tax capacity" means the new text begin taxable new text end market value of real and personal property multiplied by its net tax capacity rates in section 273.13.
For the purpose of computing deleted text begin the amount or rate of any salary, aid, tax, or debt authorized, required, or limited by any provision of any law or charter, where such authorization, requirement, or limitation is related in any manner to any value or valuation of taxable property within any governmental unit, such value or net tax capacitydeleted text end new text begin fiscal capacity under section 473F.02, subdivision 14, a municipality's taxable market valuenew text end shall be adjusted to reflect the deleted text begin adjustmentsdeleted text end new text begin reductionsnew text end to net tax capacity effected by subdivision 2,new text begin clause (a),new text end provided thatdeleted text begin : (1)deleted text end in determining the new text begin taxable new text end market value of commercial-industrial property or any class thereof within a deleted text begin governmental unit for any purpose other than section 473F.07deleted text end new text begin municipalitynew text end , deleted text begin (a)deleted text end the reduction required by this subdivision shall be that amount which bears the same proportion to the amount subtracted from the deleted text begin governmental unit'sdeleted text end new text begin municipality'snew text end net tax capacity pursuant to subdivision 2, clause (a), as the new text begin taxable new text end market value of commercial-industrial property, or such class thereof, located within the deleted text begin governmental unitdeleted text end new text begin municipalitynew text end bears to the net tax capacity of commercial-industrial property, or such class thereof, located within the deleted text begin governmental unit, and (b) the increase required by this subdivision shall be that amount which bears the same proportion to the amount added to the governmental unit's net tax capacity pursuant to subdivision 2, clause (b), as the market value of commercial-industrial property, or such class thereof, located within the governmental unit bears to the net tax capacity of commercial-industrial property, or such class thereof, located within the governmental unit; and (2) in determining the market value of real property within a municipality for purposes of section 473F.07, the adjustment prescribed by clause (1)(a) hereof shall be made and that prescribed by clause (1)(b) hereof shall not be madedeleted text end new text begin municipalitynew text end .new text begin No adjustment shall be made to taxable market value for the increase in net tax capacity under subdivision 2, clause (b).new text end
A municipality may not issue bonds under this section if the maximum amount of principal and interest to become due in any year on all the outstanding bonds issued under this section, including the bonds to be issued, will equal or exceed 0.16 percent of the deleted text begin taxabledeleted text end new text begin estimatednew text end market value of property in the municipality. Calculation of the limit must be made using the deleted text begin taxabledeleted text end new text begin estimatednew text end market value for the taxes payable year in which the obligations are issued and sold. In the case of a municipality with a population of 2,500 or more, the bonds are subject to the net debt limits under section 475.53. In the case of a shared facility in which more than one municipality participates, upon compliance by each participating municipality with the requirements of subdivision 2, the limitations in this subdivision and the net debt represented by the bonds shall be allocated to each participating municipality in proportion to its required financial contribution to the financing of the shared facility, as set forth in the joint powers agreement relating to the shared facility. This section does not limit the authority to issue bonds under any other special or general law.
Except as otherwise provided in sections 475.51 to 475.74, no municipality, except a school district or a city of the first class, shall incur or be subject to a net debt in excess of three percent of the new text begin estimated new text end market value of taxable property in the municipality.
Unless its charter permits a greater net debt a city of the first class may not incur a net debt in excess of two percent of the new text begin estimated new text end market value of all taxable property therein. If the charter of the city permits a net debt of the city in excess of two percent of its valuation, it may not incur a net debt in excess of 3-2/3 percent of the new text begin estimated new text end market value of the taxable property therein.
The county auditor, at the time of preparing the tax list of the city, shall compile a statement setting forth the total net tax capacity and the total new text begin estimated new text end market value of each class of taxable property in such city for such year.
Except as otherwise provided by law, no school district shall be subject to a net debt in excess of 15 percent of the deleted text begin actualdeleted text end new text begin estimatednew text end market value of all taxable property situated within its corporate limits, as computed in accordance with this subdivision. The county auditor of each county containing taxable real or personal property situated within any school district shall certify to the district upon request the new text begin estimated new text end market value of all such property. Whenever the commissioner of revenue, in accordance with section 127A.48, subdivisions 1 to 6, has determined that the deleted text begin net tax capacity of any district furnished by county auditors is not based upon thedeleted text end new text begin adjustednew text end market value of taxable property in the districtnew text begin exceeds the estimated market value of property within the districtnew text end , the commissioner of revenue shall certify to the district upon request the ratio most recently ascertained to exist between deleted text begin suchdeleted text end new text begin the estimated marketnew text end value and the deleted text begin actualdeleted text end new text begin adjustednew text end market value of property within the districtdeleted text begin .deleted text end new text begin , andnew text end the deleted text begin actual market value of property within a district, on which itsdeleted text end debt limit under this subdivision deleted text begin isdeleted text end new text begin will benew text end baseddeleted text begin , is (a) the value certified by the county auditors, or (b) thisdeleted text end new text begin on the estimated marketnew text end value divided by the ratio certified by the commissioner of revenuedeleted text begin , whichever results in a higher valuedeleted text end .
Any county, city, town, or school district whose outstanding gross debt, including all items referred to in section 475.51, subdivision 4, exceed in amount 1.62 percent of its new text begin estimated new text end market value may issue bonds under this subdivision for the purpose of funding or refunding such indebtedness or any part thereof. A list of the items of indebtedness to be funded or refunded shall be made by the recording officer and treasurer and filed in the office of the recording officer. The initial resolution of the governing body shall refer to this subdivision as authority for the issue, state the amount of bonds to be issued and refer to the list of indebtedness to be funded or refunded. This resolution shall be published once each week for two successive weeks in a legal newspaper published in the municipality or if there be no such newspaper, in a legal newspaper published in the county seat. Such bonds may be issued without the submission of the question of their issue to the electors unless within ten days after the second publication of the resolution a petition requesting such election signed by ten or more voters who are taxpayers of the municipality, shall be filed with the recording officer. In event such petition is filed, no bonds shall be issued hereunder unless authorized by a majority of the electors voting on the question.
Obligations sold under the provisions of section 475.60 may be purchased by the State Board of Investment if the obligations meet the requirements of section 11A.24, subdivision 2, upon the approval of the attorney general as to form and execution of the application therefor, and under rules as the board may specify, and the state board shall have authority to purchase the same to an amount not exceeding 3.63 percent of the new text begin estimated new text end market value of the taxable property of the municipality, according to the last preceding assessment. The obligations shall not run for a shorter period than one year, nor for a longer period than 30 years and shall bear interest at a rate to be fixed by the state board but not less than two percent per annum. Forthwith upon the delivery to the state of Minnesota of any obligations issued by virtue thereof, the commissioner of management and budget shall certify to the respective auditors of the various counties wherein are situated the municipalities issuing the same, the number, denomination, amount, rate of interest and date of maturity of each obligation.
"City net tax capacity" means deleted text begin (1) the net tax capacity computed using the net tax capacity rates in section 273.13 for taxes payable in the year of the aid distribution, and the market values, after the exclusion in section 273.13, subdivision 35, for taxes payable in the year prior to the aid distribution plus (2) a city's fiscal disparities distribution tax capacity under section 276A.06, subdivision 2, paragraph (b), or 473F.08, subdivision 2, paragraph (b), for taxes payable in the year prior to that for which aids are being calculated. The market value utilized in computing city net tax capacity shall be reduced by the sum of (1) a city's market value of commercial industrial property as defined in section 276A.01, subdivision 3, or 473F.02, subdivision 3, multiplied by the ratio determined pursuant to section 276A.06, subdivision 2, paragraph (a), or 473F.08, subdivision 2, paragraph (a), (2) the market value of the captured value of tax increment financing districts as defined in section 469.177, subdivision 2, and (3) the market value of transmission lines deducted from a city's total net tax capacity under section 273.425. The city net tax capacity will be computed using equalized market valuesdeleted text end new text begin the city's adjusted net tax capacity under section 273.1325new text end .
new text begin This section is effective the day following final enactment. new text end
(a) For the purposes of this section, the following terms have the meanings given them.
(b) "County program aid" means the sum of "county need aid," "county tax base equalization aid," and "county transition aid."
(c) "Age-adjusted population" means a county's population multiplied by the county age index.
(d) "County age index" means the percentage of the population over age 65 within the county divided by the percentage of the population over age 65 within the state, except that the age index for any county may not be greater than 1.8 nor less than 0.8.
(e) "Population over age 65" means the population over age 65 established as of July 15 in an aid calculation year by the most recent federal census, by a special census conducted under contract with the United States Bureau of the Census, by a population estimate made by the Metropolitan Council, or by a population estimate of the state demographer made pursuant to section 4A.02, whichever is the most recent as to the stated date of the count or estimate for the preceding calendar year and which has been certified to the commissioner of revenue on or before July 15 of the aid calculation year. A revision to an estimate or count is effective for these purposes only if certified to the commissioner on or before July 15 of the aid calculation year. Clerical errors in the certification or use of estimates and counts established as of July 15 in the aid calculation year are subject to correction within the time periods allowed under section 477A.014.
(f) "Part I crimes" means the three-year average annual number of Part I crimes reported for each county by the Department of Public Safety for the most recent years available. By July 1 of each year, the commissioner of public safety shall certify to the commissioner of revenue the number of Part I crimes reported for each county for the three most recent calendar years available.
(g) "Households receiving food stamps" means the average monthly number of households receiving food stamps for the three most recent years for which data is available. By July 1 of each year, the commissioner of human services must certify to the commissioner of revenue the average monthly number of households in the state and in each county that receive food stamps, for the three most recent calendar years available.
(h) "County net tax capacity" means the deleted text begin net tax capacity of the county, computed analogously to city net tax capacity under section 477A.011, subdivision 20deleted text end new text begin county's adjusted net tax capacity under section 273.1325new text end .
new text begin This section is effective the day following final enactment. new text end
Before any contract is made for the erection of a county jail, sheriff's residence, or both, the county board shall either levy a sufficient tax to provide the necessary funds, or issue county bonds therefor in accordance with the provisions of chapter 475, provided that no election is required if the amount of all bonds issued for this purpose and interest on them which are due and payable in any year does not exceed an amount equal to 0.09671 percent of new text begin estimated new text end market value of taxable property within the county, as last determined before the bonds are issued.
The county may, by resolution of the county board, enter into a lease agreement with any statutory or home rule charter city situated within the county, or a county housing and redevelopment authority established pursuant to chapter 469 or any special law whereby the city or county housing and redevelopment authority will construct a jail or other law enforcement facilities for the county sheriff, deputy sheriffs, and other employees of the sheriff and other law enforcement agencies, in accordance with plans prepared by or at the request of the county board and, when required, approved by the commissioner of corrections and will finance it by the issuance of revenue bonds, and the county may lease the site and improvements for a term and upon rentals sufficient to produce revenue for the prompt payment of the bonds and all interest accruing thereon and, upon completion of payment, will acquire title thereto. The real and personal property acquired for the jail shall constitute a project and the lease agreement shall constitute a revenue agreement as contemplated in chapter 469, and all proceedings shall be taken by the city or county housing and redevelopment authority and the county in the manner and with the force and effect provided in chapter 469; provided that:
(1) no tax shall be imposed upon or in lieu of a tax upon the property;
(2) the approval of the project by the commissioner of commerce shall not be required;
(3) the Department of Corrections shall be furnished and shall record such information concerning each project as it may prescribe;
(4) the rentals required to be paid under the lease agreement shall not exceed in any year one-tenth of one percent of the new text begin estimated new text end market value of property within the county, as last finally equalized before the execution of the agreement;
(5) the county board shall provide for the payment of all rentals due during the term of the lease, in the manner required in section 641.264, subdivision 2;
(6) no mortgage on the property shall be granted for the security of the bonds, but compliance with clause (5) hereof may be enforced as a nondiscretionary duty of the county board; and
(7) the county board may sublease any part of the jail property for purposes consistent with the maintenance and operation of a county jail or other law enforcement facility.
new text begin When used in determining or calculating a limit on taxation, spending, state aid amounts, or debt, bond, certificate of indebtedness, or capital note issuance by or for a local government unit, "estimated market value" has the meaning given in section 273.032. new text end
new text begin The revisor of statutes shall recodify Minnesota Statutes, section 127A.48, subdivisions 1 to 6, as section 273.1325, subdivisions 1 to 6, and change all cross-references to the affected subdivisions accordingly. new text end
new text begin This section is effective the day following final enactment. new text end
new text begin Minnesota Statutes 2012, sections 276A.01, subdivision 11; 473F.02, subdivision 13; and 477A.011, subdivision 21, new text end new text begin are repealed. new text end
new text begin Unless otherwise specifically provided, this article is effective the day following final enactment for purposes of limits on net debt, the issuance of bonds, certificates of indebtedness, and capital notes and is effective beginning for taxes payable in 2014 for all other purposes. new text end
new text begin If a disposition or cessation as provided by section 291.03, subdivision 11, paragraph (a), has occurred, the qualified heir, as defined under section 291.03, subdivision 8, paragraph (c), or personal representative of the decedent's estate must submit a recapture tax return to the commissioner. new text end
new text begin This section is effective for estates of decedents dying after June 30, 2011. new text end
(a) A regulated investment company paying $10 or more in exempt-interest dividends to an individual who is a resident of Minnesota must make a return indicating the amount of the 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 shareholder by February 15 of the year following the year of the payment. The return provided to the shareholder must include a clear statement, in the form prescribed by the commissioner, that the exempt-interest dividends must be included in the computation of Minnesota taxable income. By June 1 of each year, the regulated investment company must file a copy of the return with the commissioner.
deleted text begin (b) This subdivision applies to regulated investment companies required to register under chapter 80A. deleted text end
deleted text begin (c)deleted text end new text begin (b)new text end 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 This section is effective the day following final enactment. new text end
new text begin A qualified heir, as defined in section 291.03, subdivision 8, paragraph (c), must file two returns with the commissioner attesting that no disposition or cessation as provided by section 291.03, subdivision 11, paragraph (a), occurred. The first return must be filed no earlier than 24 months and no later than 26 months after the decedent's death. The second return must be filed no earlier than 36 months and no later than 39 months after the decedent's death. new text end
new text begin This section is effective for returns required to be filed after December 31, 2013. new text end
new text begin A recapture tax return must be filed with the commissioner within six months after the date of the disposition or cessation as provided by section 291.03, subdivision 11, paragraph (a). new text end
new text begin This section is effective for estates of decedents dying after June 30, 2011. new text end
Taxes imposed by deleted text begin chapter 291deleted text end new text begin section 291.03, subdivision 1,new text end take effect at and upon the death of the person whose estate is subject to taxation and are due and payable on or before the expiration of nine months from that death.
new text begin This section is effective for estates of decedents dying after June 30, 2011. new text end
new text begin The additional estate tax imposed by section 291.03, subdivision 11, paragraph (b), is due and payable on or before the expiration of the date provided by section 291.03, subdivision 11, paragraph (c). new text end
new text begin This section is effective for estates of decedents dying after June 30, 2011. new text end
(a) new text begin A corporation or new text end an entity with a short taxable year of less than 12 months, but at least four months, must pay estimated tax in equal installments on or before the 15th day of the third, sixth, ninth, and final month of the short taxable year, to the extent applicable based on the number of months in the short taxable year.
(b) new text begin A corporation or new text end an entity is not required to make estimated tax payments for a short taxable year unless its tax liability before the first day of the last month of the taxable year can reasonably be expected to exceed $500.
(c) No payment is required for a short taxable year of less than four months.
new text begin This section is effective the day following final enactment. new text end
If there is an underpayment of estimated tax by a corporationnew text begin or an entitynew text end , there shall be added to the tax for the taxable year an amount determined at the rate in section 270C.40 on the amount of the underpayment, determined under subdivision 5, for the period of the underpayment determined under subdivision 6. This subdivision does not apply in the first taxable year that a corporation is subject to the tax imposed under section 290.02new text begin or an entity is subject to the tax imposed under section 290.05, subdivision 3new text end .
new text begin This section is effective the day following final enactment. new text end
(a) Except as otherwise provided in this subdivision, the amount of a required installment is 25 percent of the required annual payment.
(b) Except as otherwise provided in this subdivision, the term "required annual payment" means the lesser of:
(1) 100 percent of the tax shown on the return for the taxable year, or, if no return is filed, 100 percent of the tax for that year; or
(2) 100 percent of the tax shown on the return of thenew text begin corporation ornew text end entity for the preceding taxable year provided the return was for a full 12-month period, showed a liability, and was filed by thenew text begin corporation ornew text end entity.
(c) Except for determining the first required installment for any taxable year, paragraph (b), clause (2), does not apply in the case of a large corporation. The term "large corporation" means a corporation or any predecessor corporation that had taxable net income of $1,000,000 or more for any taxable year during the testing period. The term "testing period" means the three taxable years immediately preceding the taxable year involved. A reduction allowed to a large corporation for the first installment that is allowed by applying paragraph (b), clause (2), must be recaptured by increasing the next required installment by the amount of the reduction.
(d) In the case of a required installment, if the corporationnew text begin or entitynew text end establishes that the annualized income installment is less than the amount determined in paragraph (a), the amount of the required installment is the annualized income installment and the recapture of previous quarters' reductions allowed by this paragraph must be recovered by increasing later required installments to the extent the reductions have not previously been recovered.
(e) The "annualized income installment" is the excess, if any, of:
(1) an amount equal to the applicable percentage of the tax for the taxable year computed by placing on an annualized basis the taxable income:
(i) for the first two months of the taxable year, in the case of the first required installment;
(ii) for the first two months or for the first five months of the taxable year, in the case of the second required installment;
(iii) for the first six months or for the first eight months of the taxable year, in the case of the third required installment; and
(iv) for the first nine months or for the first 11 months of the taxable year, in the case of the fourth required installment, over
(2) the aggregate amount of any prior required installments for the taxable year.
(3) For the purpose of this paragraph, the annualized income shall be computed by placing on an annualized basis the taxable income for the year up to the end of the month preceding the due date for the quarterly payment multiplied by 12 and dividing the resulting amount by the number of months in the taxable year (2, 5, 6, 8, 9, or 11 as the case may be) referred to in clause (1).
(4) The "applicable percentage" used in clause (1) is:
For the following required installments: | The applicable percentage is: |
||||
1st | 25 | ||||
2nd | 50 | ||||
3rd | 75 | ||||
4th | 100 |
(f)(1) If this paragraph applies, the amount determined for any installment must be determined in the following manner:
(i) take the taxable income for the months during the taxable year preceding the filing month;
(ii) divide that amount by the base period percentage for the months during the taxable year preceding the filing month;
(iii) determine the tax on the amount determined under item (ii); and
(iv) multiply the tax computed under item (iii) by the base period percentage for the filing month and the months during the taxable year preceding the filing month.
(2) For purposes of this paragraph:
(i) the "base period percentage" for a period of months is the average percent that the taxable income for the corresponding months in each of the three preceding taxable years bears to the taxable income for the three preceding taxable years;
(ii) the term "filing month" means the month in which the installment is required to be paid;
(iii) this paragraph only applies if the base period percentage for any six consecutive months of the taxable year equals or exceeds 70 percent; and
(iv) the commissioner may provide by rule for the determination of the base period percentage in the case of reorganizations, new corporationsnew text begin or entitiesnew text end , and other similar circumstances.
(3) In the case of a required installment determined under this paragraph, if thenew text begin corporation ornew text end entity determines that the installment is less than the amount determined in paragraph (a), the amount of the required installment is the amount determined under this paragraph and the recapture of previous quarters' reductions allowed by this paragraph must be recovered by increasing later required installments to the extent the reductions have not previously been recovered.
new text begin This section is effective the day following final enactment. new text end
In the case ofnew text begin a corporation ornew text end an entity that fails to file an estimated tax for a taxable year when one is required, the period of the underpayment runs from the four installment dates in subdivision 2 or 3, whichever applies, to the earlier of the periods in subdivision 6, clauses (1) and (2).
new text begin This section is effective the day following final enactment. new text end
(a) In this section, "person" means a person, corporation, or cooperative, the state of Minnesota and its political subdivisions, and a city, county, and school district in Minnesota.
(b) A person who in the regular course of business is hiring, contracting, or having a contract with a nonresident person or foreign corporationdeleted text begin , as defined in Minnesota Statutes 1986, section 290.01, subdivision 5,deleted text end to perform construction work in Minnesota, shall deduct and withhold eight percent of deleted text begin cumulative calendar yeardeleted text end payments new text begin made new text end to the contractor deleted text begin which exceeddeleted text end new text begin if the value of the contract exceedsnew text end $50,000.
new text begin This section is effective for payments made to contractors after December 31, 2013. new text end
new text begin "Partition" means the division by conveyance of real property that is held jointly or in common by two or more persons into individually owned interests. If one of the co-owners gives consideration for all or a part of the individually owned interest conveyed to them, that portion of the conveyance is not a part of the partition. new text end
new text begin This section is effective the day following final enactment. new text end
(a) The taxes imposed by chapter 297A are due and payable to the commissioner monthly on or before the 20th day of the month following the month in which the taxable event occurred, or following another reporting period as the commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph (f) or (g), except thatdeleted text begin :deleted text end
deleted text begin (1)deleted text end use taxes due on an annual use tax return as provided under section 289A.11, subdivision 1, are payable by April 15 following the close of the calendar yeardeleted text begin ; anddeleted text end new text begin .new text end
deleted text begin (2) except as provided in paragraph (f), for a vendor having a liability of $120,000 or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the commissioner monthly in the following manner: deleted text end
deleted text begin (i) On or before the 14th day of the month following the month in which the taxable event occurred, the vendor must remit to the commissioner 90 percent of the estimated liability for the month in which the taxable event occurred. deleted text end
deleted text begin (ii) On or before the 20th day of the month in which the taxable event occurs, the vendor must remit to the commissioner a prepayment for the month in which the taxable event occurs equal to 67 percent of the liability for the previous month. deleted text end
deleted text begin (iii) On or before the 20th day of the month following the month in which the taxable event occurred, the vendor must pay any additional amount of tax not previously remitted under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than the vendor's liability for the month in which the taxable event occurred, the vendor may take a credit against the next month's liability in a manner prescribed by the commissioner. deleted text end
deleted text begin (iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to continue to make payments in the same manner, as long as the vendor continues having a liability of $120,000 or more during the most recent fiscal year ending June 30. deleted text end
deleted text begin (v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required payment in the first month that the vendor is required to make a payment under either item (i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make subsequent monthly payments in the manner provided in item (ii). deleted text end
deleted text begin (vi) For vendors making an accelerated payment under item (ii), for the first month that the vendor is required to make the accelerated payment, on the 20th of that month, the vendor will pay 100 percent of the liability for the previous month and a prepayment for the first month equal to 67 percent of the liability for the previous month. deleted text end
(b) deleted text begin Notwithstanding paragraph (a),deleted text end A vendor having a liability of $120,000 or more during a fiscal year ending June 30 must remit the June liability for the next year in the following manner:
(1) Two business days before June 30 of the year, the vendor must remit 90 percent of the estimated June liability to the commissioner.
(2) On or before August 20 of the year, the vendor must pay any additional amount of tax not remitted in June.
(c) A vendor having a liability of:
(1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30, 2009, and fiscal years thereafter, must remit by electronic means all liabilities on returns due for periods beginning in the subsequent calendar year on or before the 20th day of the month following the month in which the taxable event occurred, or on or before the 20th day of the month following the month in which the sale is reported under section 289A.18, subdivision 4; or
(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years thereafter, must remit by electronic means all liabilities in the manner provided in paragraph (a)deleted text begin , clause (2),deleted text end on returns due for periods beginning in the subsequent calendar year, except for 90 percent of the estimated June liability, which is due two business days before June 30. The remaining amount of the June liability is due on August 20.
(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's religious beliefs from paying electronically shall be allowed to remit the payment by mail. The filer must notify the commissioner of revenue of the intent to pay by mail before doing so on a form prescribed by the commissioner. No extra fee may be charged to a person making payment by mail under this paragraph. The payment must be postmarked at least two business days before the due date for making the payment in order to be considered paid on a timely basis.
deleted text begin (e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and paid with the chapter 297A taxes, then the payment of all the liabilities on the return must be accelerated as provided in this subdivision. deleted text end
deleted text begin (f) At the start of the first calendar quarter at least 90 days after the cash flow account established in section 16A.152, subdivision 1, and the budget reserve account established in section 16A.152, subdivision 1a, reach the amounts listed in section 16A.152, subdivision 2, paragraph (a), the remittance of the accelerated payments required under paragraph (a), clause (2), must be suspended. The commissioner of management and budget shall notify the commissioner of revenue when the accounts have reached the required amounts. Beginning with the suspension of paragraph (a), clause (2), for a vendor with a liability of $120,000 or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes imposed by chapter 297A are due and payable to the commissioner on the 20th day of the month following the month in which the taxable event occurred. Payments of tax liabilities for taxable events occurring in June under paragraph (b) are not changed. deleted text end
new text begin This section is effective the day following final enactment. new text end
(a) For the purpose of the proper administration of this chapter and to prevent evasion of the tax, until the contrary is established, it is presumed that:
(1) all gross receipts are subject to the tax; and
(2) all retail sales for delivery in Minnesota are for storage, use, or other consumption in Minnesota.
(b) The burden of proving that a sale is not a taxable retail sale is on the seller. However, a seller is relieved of liability if:
(1) the seller obtains a fully completed exemption certificate or all the relevant information required by section 297A.72, subdivision 2, at the time of the sale or within 90 days after the date of the sale; or
(2) if the seller has not obtained a fully completed exemption certificate or all the relevant information required by section 297A.72, subdivision 2, within the time provided in clause (1), within 120 days after a request for substantiation by the commissioner, the seller either:
(i) obtains deleted text begin in good faithdeleted text end new text begin from the purchasernew text end a fully completed exemption certificate or all the relevant information required by section 297A.72, subdivision 2, deleted text begin from the purchaserdeleted text end new text begin taken in good faith which means that the exemption certificate claims an exemption that (A) was statutorily available on the date of the transaction, (B) could be applicable to the item for which the exemption is claimed, and (C) is reasonable for the purchaser's type of businessnew text end ; or
(ii) proves by other means that the transaction was not subject to tax.
(c) Notwithstanding paragraph (b), relief from liability does not apply to a seller who:
(1) fraudulently fails to collect the tax; or
(2) solicits purchasers to participate in the unlawful claim of an exemption.
new text begin (d) Notwithstanding paragraph (b), relief from liability does not apply to a seller who has obtained information under paragraph (b), clause (2), if through the audit process the commissioner finds the following: new text end
new text begin (1) that at the time the information was provided the seller had knowledge or had reason to know that the information relating to the exemption was materially false; or new text end
new text begin (2) that the seller knowingly participated in activity intended to purposefully evade the sales tax due on the transaction. new text end
deleted text begin (d)deleted text end new text begin (e)new text end A certified service provider, as defined in section 297A.995, subdivision 2, is relieved of liability under this section to the extent a seller who is its client is relieved of liability.
deleted text begin (e)deleted text end new text begin (f)new text end A purchaser of tangible personal property or any items listed in section 297A.63 that are shipped or brought to Minnesota by the purchaser has the burden of proving that the property was not purchased from a retailer for storage, use, or consumption in Minnesota.
deleted text begin (f)deleted text end new text begin (g)new text end If a seller claims that certain sales are exempt and does not provide the certificate, information, or proof required by paragraph (b), clause (2), within 120 days after the date of the commissioner's request for substantiation, then the exemptions claimed by the seller that required substantiation are disallowed.
new text begin This section is effective retroactively from January 1, 2013. new text end
"Wholesale sales price" means the price deleted text begin stated on the price list in effect at the time of sale for which a manufacturer or person sells a tobacco product to a distributor, exclusive of any discount, promotional offer, or other reduction. For purposes of this subdivision, "price list" means the manufacturer's price at which tobacco products are made available for sale to all distributors on an ongoing basisdeleted text end new text begin at which a distributor purchases a tobacco product. Wholesale sales price includes the applicable federal excise tax, freight charges, or packaging costs, regardless of whether they were included in the purchase pricenew text end .
new text begin This section is effective for purchases made after December 31, 2013. new text end
A qualified brewer producing fermented malt beverages is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year beginning July 1, regardless of the alcohol content of the product. Qualified brewers may take the credit on the 18th day of each month, but the total credit allowed may not exceed in any fiscal year the lesser of:
(1) the liability for tax; or
(2) $115,000.
For purposes of this subdivision, a "qualified brewer" means a brewer, whether or not located in this state, manufacturing less than 100,000 barrels of fermented malt beverages in the calendar year immediately preceding the deleted text begin calendardeleted text end new text begin fiscalnew text end year for which the credit under this subdivision is claimed. In determining the number of barrels, all brands or labels of a brewer must be combined. All facilities for the manufacture of fermented malt beverages owned or controlled by the same person, corporation, or other entity must be treated as a single brewer.
new text begin This section is effective the day following final enactment. new text end
(a) A tax is imposed on surplus lines brokers. The rate of tax is equal to three percent of the gross premiums less return premiums paid by an insured whose home state is Minnesota.
(b) A tax is imposed on deleted text begin persons, firms, or corporationsdeleted text end new text begin a person, firm, corporation, or purchasing group as defined in section 60E.02, or any member of a purchasing group,new text end that deleted text begin procuredeleted text end new text begin procuresnew text end insurance directly from a nonadmitted insurer. The rate of tax is equal to two percent of the gross premiums less return premiums paid by an insured whose home state is Minnesota.
(c) No state other than the home state of an insured may require any premium tax payment for nonadmitted insurance. When Minnesota is the home state of the insured, as provided under section 297I.01, 100 percent of the gross premiums are taxable in Minnesota with no allocation of the tax to other states.
new text begin This section is effective for premiums received after December 31, 2013. new text end
(a) If any other state or country imposes any taxes, fines, deposits, penalties, licenses, or fees upon any insurance companies of this state and their agents doing business in another state or country that are in addition to or in excess of those imposed by the laws of this state upon foreign insurance companies and their agents doing business in this state, the same taxes, fines, deposits, penalties, licenses, and fees are imposed upon every similar insurance company of that state or country and their agents doing or applying to do business in this state.
(b) If any conditions precedent to the right to do business in any other state or country are imposed by the laws of that state or country, beyond those imposed upon foreign companies by the laws of this state, the same conditions precedent are imposed upon every similar insurance company of that state or country and their agents doing or applying to do business in that state.
(c) For purposes of this subdivision, "taxes, fines, deposits, penalties, licenses, or fees" means an amount of money that is deposited in the general revenue fund of the state or other similar fund in another state or country and is not dedicated to a special purpose or use or money deposited in the general revenue fund of the state or other similar fund in another state or country and appropriated to the commissioner of commerce or insurance for the operation of the Department of Commerce or other similar agency with jurisdiction over insurance. Taxes, fines, deposits, penalties, licenses, or fees do not include:
(1) special purpose obligations or assessments imposed in connection with particular kinds of insurance, including but not limited to assessments imposed in connection with residual market mechanisms; or
(2) assessments made by the insurance guaranty association, life and health guarantee association, or similar association.
(d) This subdivision applies to taxes imposed under subdivisions 1deleted text begin ,deleted text end new text begin ;new text end 3deleted text begin ,deleted text end new text begin ;new text end 4deleted text begin , 6, anddeleted text end new text begin ;new text end 12, paragraph (a), clauses (1) and (2)new text begin ; and 14new text end .
(e) This subdivision does not apply to insurance companies organized or domiciled in a state or country, the laws of which do not impose retaliatory taxes, fines, deposits, penalties, licenses, or fees or which grant, on a reciprocal basis, exemptions from retaliatory taxes, fines, deposits, penalties, licenses, or fees to insurance companies domiciled in this state.
new text begin This section is effective the day following final enactment. new text end
(a) A tax is imposed equal to two percent of:
(1) gross premiums less return premiums written for risks resident or located in Minnesota by a risk retention group;
(2) gross premiums less return premiums received by an attorney in fact acting in accordance with chapter 71A;
(3) gross premiums less return premiums received pursuant to assigned risk policies and contracts of coverage under chapter 79;new text begin andnew text end
(4) the direct funded premium received by the reinsurance association under section 79.34 from self-insurers approved under section 176.181 and political subdivisions that self-insuredeleted text begin ; anddeleted text end new text begin .new text end
deleted text begin (5) gross premiums less return premiums paid to an insurer other than a licensed insurance company or a surplus lines broker for coverage of risks resident or located in Minnesota by a purchasing group or any members of the purchasing group to a broker or agent for the purchasing group. deleted text end
(b) A tax is imposed on a joint self-insurance plan operating under chapter 60F. The rate of tax is equal to two percent of the total amount of claims paid during the fund year, with no deduction for claims wholly or partially reimbursed through stop-loss insurance.
(c) A tax is imposed on a joint self-insurance plan operating under chapter 62H. The rate of tax is equal to two percent of the total amount of claims paid during the fund's fiscal year, with no deduction for claims wholly or partially reimbursed through stop-loss insurance.
(d) A tax is imposed equal to the tax imposed under section 297I.05, subdivision 5, on the gross premiums less return premiums on all coverages received by an accountable provider network or agents of an accountable provider network in Minnesota, in cash or otherwise, during the year.
new text begin This section is effective for premiums received after December 31, 2013. new text end
On or before March 1, every taxpayer subject to taxation under section 297I.05, subdivisions 1 to 5deleted text begin ,deleted text end new text begin ;new text end 7, paragraph (b)deleted text begin ,deleted text end new text begin ;new text end 12deleted text begin , paragraphs (a), clauses (1) to (4), (b), (c), and (d),deleted text end new text begin ;new text end and 14, shall file an annual return for the preceding calendar year in the form prescribed by the commissioner.
new text begin This section is effective for premiums received after December 31, 2013. new text end
On or before February 15 and August 15 of each year, every surplus lines broker subject to taxation under section 297I.05, subdivision 7, paragraph (a), deleted text begin and every purchasing group or member of a purchasing group subject to tax under section 297I.05, subdivision 12, paragraph (a), clause (5),deleted text end shall file a return with the commissioner for the preceding six-month period ending December 31, or June 30, in the form prescribed by the commissioner.
new text begin This section is effective for premiums received after December 31, 2013. new text end
new text begin Minnesota Statutes 2012, section 289A.60, subdivision 31, new text end new text begin is repealed. new text end
new text begin This section is effective the day following final enactment. new text end
"Split residential property parcel" means a parcel of real estate that is located within the boundaries of more than one school district and that is classified as residential property under:
(1) section 273.13, subdivision 22, paragraph (a) or (b);
(2) section 273.13, subdivision 25, paragraph (b), clause (1); or
(3) section 273.13, subdivision 25, paragraph (c)deleted text begin , clause (1)deleted text end .
new text begin This section is effective for taxes payable in 2014 and thereafter. new text end
All taxes levied under sections 270.071 to 270.079 must benew text begin collected by the commissioner andnew text end credited to the state airports fund created in section 360.017.
new text begin This section is effective the day following final enactment. new text end
A licensed assessor or other person employed by an assessment jurisdiction or contracting with an assessment jurisdiction for the purpose of valuing or classifying property for property tax purposes is prohibited from making appraisals or analyses, accepting an appraisal assignment, or preparing an appraisal report as defined in section 82B.021, subdivisions 2, 4, 6, and 7, on any property within the assessment jurisdiction where the individual is employed or performing the duties of the assessor under contract. Violation of this prohibition shall result in immediate revocation of the individual's license to assess property for property tax purposes. This prohibition must not be construed to prohibit an individual from carrying out any duties required for the proper assessment of property for property tax purposes or performing duties enumerated in section 273.061, subdivision 7 or 8. If a formal resolution has been adopted by the governing body of a governmental unit, which specifies the purposes for which such work will be done, this prohibition does not apply to appraisal activities undertaken on behalf of and at the request of the governmental unit that has employed or contracted with the individual. The resolution may only allow appraisal activities which are related to condemnations, right-of-way acquisitions,new text begin land exchanges,new text end or special assessments.
new text begin This section is effective the day following final enactment. new text end
(a) The commissioner may abate, reduce, or refund any penalty or interest that is imposed by a law administered by the commissioner, or imposed by section 270.0725, subdivision 1 or 2, new text begin or 270.075, subdivision 2, new text end as a result of the late payment of tax or late filing of a return, or any part of an additional tax charge under section 289A.25, subdivision 2, or 289A.26, subdivision 4, if the failure to timely pay the tax or failure to timely file the return is due to reasonable cause, or if the taxpayer is located in a presidentially declared disaster or in a presidentially declared state of emergency area or in an area declared to be in a state of emergency by the governor under section 12.31.
(b) The commissioner shall abate any part of a penalty or additional tax charge under section 289A.25, subdivision 2, or 289A.26, subdivision 4, attributable to erroneous advice given to the taxpayer in writing by an employee of the department acting in an official capacity, if the advice:
(1) was reasonably relied on and was in response to a specific written request of the taxpayer; and
(2) was not the result of failure by the taxpayer to provide adequate or accurate information.
new text begin This section is effective the day following final enactment. new text end
(a) When any real or personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is leased, loaned, or otherwise made available and used by a private individual, association, or corporation in connection with a business conducted for profit, there shall be imposed a tax, for the privilege of so using or possessing such real or personal property, in the same amount and to the same extent as though the lessee or user was the owner of such property.
(b) The tax imposed by this subdivision shall not apply to:
(1) property leased or used as a concession in or relative to the use in whole or part of a public park, market, fairgrounds, port authority, economic development authority established under chapter 469, municipal auditorium, municipal parking facility, municipal museum, or municipal stadium;
(2) property of an airport owned by a city, town, county, or group thereof which is:
(i) leased to or used by any person or entity including a fixed base operator; and
(ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods, services, or facilities to the airport or general public;
the exception from taxation provided in this clause does not apply to:
(i) property located at an airport owned or operated by the Metropolitan Airports Commission or by a city of over 50,000 population according to the most recent federal census or such a city's airport authority; or
(ii) hangars leased by a private individual, association, or corporation in connection with a business conducted for profit other than an aviation-related business;
(3) property constituting or used as a public pedestrian ramp or concourse in connection with a public airport;
(4) property constituting or used as a passenger check-in area or ticket sale counter, boarding area, or luggage claim area in connection with a public airport but not the airports owned or operated by the Metropolitan Airports Commission or cities of over 50,000 population or an airport authority therein. Real estate owned by a municipality in connection with the operation of a public airport and leased or used for agricultural purposes is not exempt;
(5) property leased, loaned, or otherwise made available to a private individual, corporation, or association under a cooperative farming agreement made pursuant to section 97A.135; or
(6) property leased, loaned, or otherwise made available to a private individual, corporation, or association under section 272.68, subdivision 4.
(c) Taxes imposed by this subdivision are payable as in the case of personal property taxes and shall be assessed to the lessees or users of real or personal property in the same manner as taxes assessed to owners of real or personal property, except that such taxes shall not become a lien against the property. When due, the taxes shall constitute a debt due from the lessee or user to the state, township, city, county, and school district for which the taxes were assessed and shall be collected in the same manner as personal property taxes. If property subject to the tax imposed by this subdivision is leased or used jointly by two or more persons, each lessee or user shall be jointly and severally liable for payment of the tax.
(d) The tax on real property of thenew text begin federal government, thenew text end state or any of its political subdivisions that is leased deleted text begin bydeleted text end new text begin , loaned, or otherwise made available tonew text end a private individual, association, or corporation and becomes taxable under this subdivision or other provision of law must be assessed and collected as a personal property assessment. The taxes do not become a lien against the real property.
new text begin This section is effective the day following final enactment. new text end
The following property used in the business of mining that is subject to the net proceeds tax under section 298.015 is exempt:
(1) deposits of ores, metals, and minerals and the lands in which they are contained;
(2) all real and personal property used in mining, quarrying, producing, or refining ores, minerals, or metals, including lands occupied by or used in connection with the mining, quarrying, production, or ore refining facilities; and
(3) concentrate deleted text begin or direct reduced oredeleted text end .
This exemption applies for each year that a person subject to tax under section 298.015 uses the property for mining, quarrying, producing, or refining ores, metals, or minerals.
new text begin This section is effective the day following final enactment. new text end
"Person" deleted text begin includesdeleted text end new text begin means an individual, association, estate, trust, partnership,new text end firm, company, or corporation.
new text begin This section is effective the day following final enactment. new text end
new text begin (a) new text end When real property which is being, or has been valued and assessed under this section new text begin is sold, transferred, or new text end no longer qualifies under subdivision 2, the portionnew text begin sold, transferred, ornew text end no longer qualifying shall be subject to additional taxes in the amount equal to the difference between the taxes determined in accordance with subdivision 3 and the amount determined under subdivision 4, provided that the amount determined under subdivision 4 shall not be greater than it would have been had the actual bona fide sale price of the real property at an arm's-length transaction been used in lieu of the market value determined under subdivision 4. The additional taxes shall be extended against the property on the tax list fornew text begin taxes payable innew text end the current year, provided that no interest or penalties shall be levied on the additional taxes if timely paid andnew text begin providednew text end that the additional taxes shall only be levied with respect to the current year plus two prior years that the property has been valued and assessed under this section.
new text begin (b) In the case of a sale or transfer, the additional taxes under paragraph (a) shall not be extended against the property if the new owner submits a successful application under this section by the later of May 1 of the current year or 30 days after the sale or transfer. new text end
new text begin (c) For the purposes of this section, the following events do not constitute a sale or transfer for property that qualified under subdivision 2 prior to the event: new text end
new text begin (1) death of a property owner when the surviving owners retain ownership of the property; new text end
new text begin (2) divorce of a married couple when one of the spouses retains ownership of the property; new text end
new text begin (3) marriage of a single property owner when that owner retains ownership of the property in whole or in part; new text end
new text begin (4) the organization or reorganization of a farm ownership entity that is not prohibited from owning agricultural land in this state under section 500.24, if all owners maintain the same beneficial interest both before and after the organization or reorganization; and new text end
new text begin (5) transfer of the property to a trust or trustee, provided that the individual owners of the property are the grantors of the trust and they maintain the same beneficial interest both before and after placement of the property in trust. new text end
new text begin This section is effective the day following final enactment. new text end
(a) An agricultural homestead consists of class 2a agricultural land that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class 2a land under the same ownership. The market value of the house and garage and immediately surrounding one acre of land has the same class rates as class 1a or 1b property under subdivision 22. The value of the remaining land including improvements up to the first tier valuation limit of agricultural homestead property has a net class rate of 0.5 percent of market value. The remaining property over the first tier has a class rate of one percent of market value. For purposes of this subdivision, the "first tier valuation limit of agricultural homestead property" and "first tier" means the limit certified under section 273.11, subdivision 23.
(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that are agricultural land and buildings. Class 2a property has a net class rate of one percent of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a property must also include any property that would otherwise be classified as 2b, but is interspersed with class 2a property, including but not limited to sloughs, wooded wind shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement, and other similar land that is impractical for the assessor to value separately from the rest of the property or that is unlikely to be able to be sold separately from the rest of the property.
An assessor may classify the part of a parcel described in this subdivision that is used for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that are unplatted real estate, rural in character and not used for agricultural purposes, including land used for growing trees for timber, lumber, and wood and wood products, that is not improved with a structure. The presence of a minor, ancillary nonresidential structure as defined by the commissioner of revenue does not disqualify the property from classification under this paragraph. Any parcel of 20 acres or more improved with a structure that is not a minor, ancillary nonresidential structure must be split-classified, and ten acres must be assigned to the split parcel containing the structure. Class 2b property has a net class rate of one percent of market value unless it is part of an agricultural homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 acres statewide per taxpayer that is being managed under a forest management plan that meets the requirements of chapter 290C, but is not enrolled in the sustainable forest resource management incentive program. It has a class rate of .65 percent, provided that the owner of the property must apply to the assessor in order for the property to initially qualify for the reduced rate and provide the information required by the assessor to verify that the property qualifies for the reduced rate. If the assessor receives the application and information before May 1 in an assessment year, the property qualifies beginning with that assessment year. If the assessor receives the application and information after April 30 in an assessment year, the property may not qualify until the next assessment year. The commissioner of natural resources must concur that the land is qualified. The commissioner of natural resources shall annually provide county assessors verification information on a timely basis. The presence of a minor, ancillary nonresidential structure as defined by the commissioner of revenue does not disqualify the property from classification under this paragraph.
(e) Agricultural land as used in this section meansnew text begin :new text end
new text begin (1)new text end contiguous acreage of ten acres or more, used during the preceding year for agricultural purposesdeleted text begin .deleted text end new text begin ; ornew text end
new text begin (2) contiguous acreage used during the preceding year for an intensive livestock or poultry confinement operation, provided that land used only for pasturing or grazing does not qualify under this clause. new text end
"Agricultural purposes" as used in this section means the raising, cultivation, drying, or storage of agricultural products for sale, or the storage of machinery or equipment used in support of agricultural production by the same farm entity. For a property to be classified as agricultural based only on the drying or storage of agricultural products, the products being dried or stored must have been produced by the same farm entity as the entity operating the drying or storage facility. "Agricultural purposes" also includes enrollment in the Reinvest in Minnesota program under sections 103F.501 to 103F.535 or the federal Conservation Reserve Program as contained in Public Law 99-198 or a similar state or federal conservation program if the property was classified as agricultural (i) under this subdivision for deleted text begin the assessment year 2002deleted text end new text begin taxes payable in 2003 because of its enrollment in a qualifying program and the land remains enrollednew text end or (ii) in the year prior to its enrollment. Agricultural classification shall not be based upon the market value of any residential structures on the parcel or contiguous parcels under the same ownership.
new text begin "Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion of, a set of contiguous tax parcels under that section that are owned by the same person. new text end
(f) deleted text begin Real estate ofdeleted text end new text begin Agricultural land under this section also includes:new text end
new text begin (1) contiguous acreage that isnew text end less than ten acresdeleted text begin , which isdeleted text end new text begin in size andnew text end exclusively deleted text begin or intensivelydeleted text end usednew text begin in the preceding yearnew text end for raising or cultivating agricultural productsdeleted text begin , shall be considered as agricultural land. To qualify under this paragraph, property that includes a residential structure must be used intensively for one of the following purposes:deleted text end new text begin ; ornew text end
new text begin (2) contiguous acreage that contains a residence and is less than 11 acres in size, if the contiguous acreage exclusive of the house, garage, and surrounding one acre of land was used in the preceding year for one or more of the following three uses: new text end
(i) fornew text begin an intensive grainnew text end drying or storage deleted text begin of graindeleted text end new text begin operation,new text end ornew text begin for intensive machinery or equipmentnew text end storage deleted text begin of machinery or equipmentdeleted text end new text begin activitiesnew text end used to support agricultural activities on other parcels of property operated by the same farming entity;
(ii) as a nursery, provided that only those acres usednew text begin intensivelynew text end to produce nursery stock are considered agricultural land;new text begin ornew text end
deleted text begin (iii) for livestock or poultry confinement, provided that land that is used only for pasturing and grazing does not qualify; or deleted text end
deleted text begin (iv)deleted text end new text begin (iii)new text end fornew text begin intensivenew text end market farming; for purposes of this paragraph, "market farming" means the cultivation of one or more fruits or vegetables or production of animal or other agricultural products for sale to local markets by the farmer or an organization with which the farmer is affiliated.
new text begin "Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as described in section 272.193, or all of a set of contiguous tax parcels under that section that are owned by the same person. new text end
(g) Land shall be classified as agricultural even if all or a portion of the agricultural use of that property is the leasing to, or use by another person for agricultural purposes.
Classification under this subdivision is not determinative for qualifying under section 273.111.
(h) The property classification under this section supersedes, for property tax purposes only, any locally administered agricultural policies or land use restrictions that define minimum or maximum farm acreage.
(i) The term "agricultural products" as used in this subdivision includes production for sale of:
(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, bees, and apiary products by the owner;
(2) fish bred for sale and consumption if the fish breeding occurs on land zoned for agricultural use;
(3) the commercial boarding of horses, which may include related horse training and riding instruction, if the boarding is done on property that is also used for raising pasture to graze horses or raising or cultivating other agricultural products as defined in clause (1);
(4) property which is owned and operated by nonprofit organizations used for equestrian activities, excluding racing;
(5) game birds and waterfowl bred and raised (i) on a game farm licensed under section 97A.105, provided that the annual licensing report to the Department of Natural Resources, which must be submitted annually by March 30 to the assessor, indicates that at least 500 birds were raised or used for breeding stock on the property during the preceding year and that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a shooting preserve licensed under section 97A.115;
(6) insects primarily bred to be used as food for animals;
(7) trees, grown for sale as a crop, including short rotation woody crops, and not sold for timber, lumber, wood, or wood products; and
(8) maple syrup taken from trees grown by a person licensed by the Minnesota Department of Agriculture under chapter 28A as a food processor.
(j) If a parcel used for agricultural purposes is also used for commercial or industrial purposes, including but not limited to:
(1) wholesale and retail sales;
(2) processing of raw agricultural products or other goods;
(3) warehousing or storage of processed goods; and
(4) office facilities for the support of the activities enumerated in clauses (1), (2), and (3),
the assessor shall classify the part of the parcel used for agricultural purposes as class 1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use. The grading, sorting, and packaging of raw agricultural products for first sale is considered an agricultural purpose. A greenhouse or other building where horticultural or nursery products are grown that is also used for the conduct of retail sales must be classified as agricultural if it is primarily used for the growing of horticultural or nursery products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products. Use of a greenhouse or building only for the display of already grown horticultural or nursery products does not qualify as an agricultural purpose.
(k) The assessor shall determine and list separately on the records the market value of the homestead dwelling and the one acre of land on which that dwelling is located. If any farm buildings or structures are located on this homesteaded acre of land, their market value shall not be included in this separate determination.
(l) Class 2d airport landing area consists of a landing area or public access area of a privately owned public use airport. It has a class rate of one percent of market value. To qualify for classification under this paragraph, a privately owned public use airport must be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing area" means that part of a privately owned public use airport properly cleared, regularly maintained, and made available to the public for use by aircraft and includes runways, taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing area also includes land underlying both the primary surface and the approach surfaces that comply with all of the following:
(i) the land is properly cleared and regularly maintained for the primary purposes of the landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
(ii) the land is part of the airport property; and
(iii) the land is not used for commercial or residential purposes.
The land contained in a landing area under this paragraph must be described and certified by the commissioner of transportation. The certification is effective until it is modified, or until the airport or landing area no longer meets the requirements of this paragraph. For purposes of this paragraph, "public access area" means property used as an aircraft parking ramp, apron, or storage hangar, or an arrival and departure building in connection with the airport.
(m) Class 2e consists of land with a commercial aggregate deposit that is not actively being mined and is not otherwise classified as class 2a or 2b, provided that the land is not located in a county that has elected to opt-out of the aggregate preservation program as provided in section 273.1115, subdivision 6. It has a class rate of one percent of market value. To qualify for classification under this paragraph, the property must be at least ten contiguous acres in size and the owner of the property must record with the county recorder of the county in which the property is located an affidavit containing:
(1) a legal description of the property;
(2) a disclosure that the property contains a commercial aggregate deposit that is not actively being mined but is present on the entire parcel enrolled;
(3) documentation that the conditional use under the county or local zoning ordinance of this property is for mining; and
(4) documentation that a permit has been issued by the local unit of government or the mining activity is allowed under local ordinance. The disclosure must include a statement from a registered professional geologist, engineer, or soil scientist delineating the deposit and certifying that it is a commercial aggregate deposit.
For purposes of this section and section 273.1115, "commercial aggregate deposit" means a deposit that will yield crushed stone or sand and gravel that is suitable for use as a construction aggregate; and "actively mined" means the removal of top soil and overburden in preparation for excavation or excavation of a commercial deposit.
(n) When any portion of the property under this subdivision or subdivision 22 begins to be actively mined, the owner must file a supplemental affidavit within 60 days from the day any aggregate is removed stating the number of acres of the property that is actively being mined. The acres actively being mined must be (1) valued and classified under subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate resource preservation property tax program under section 273.1115, if the land was enrolled in that program. Copies of the original affidavit and all supplemental affidavits must be filed with the county assessor, the local zoning administrator, and the Department of Natural Resources, Division of Land and Minerals. A supplemental affidavit must be filed each time a subsequent portion of the property is actively mined, provided that the minimum acreage change is five acres, even if the actual mining activity constitutes less than five acres.
(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in section 14.386 concerning exempt rules do not apply.
new text begin This section is effective for taxes payable in 2014 and thereafter. new text end
Except as provided in subdivision 3 or 4, tax-exempt property held under a lease for a term of at least one year, and not taxable under section 272.01, subdivision 2, or under a contract for the purchase thereof, shall be considered, for all purposes of taxation, as the property of the person holding it. In this subdivision, "tax-exempt property" means property owned by the United States, the statenew text begin or any of its political subdivisionsnew text end , a school, or any religious, scientific, or benevolent society or institution, incorporated or unincorporated, or any corporation whose property is not taxed in the same manner as other property. This subdivision does not apply to property exempt from taxation under section 272.01, subdivision 2, paragraph (b), clauses (2), (3), and (4), or to property exempt from taxation under section 272.0213.
new text begin This section is effective the day following final enactment. new text end
(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 deleted text begin by submittingdeleted text end new text begin .new text end
new text begin (b) Companies that must submit reports under section 270.82 must submitnew text end a written request deleted text begin withdeleted text end new text begin tonew text end the commissioner for a conference within ten days after the date of the commissioner's valuation certification or notice to the company, or by deleted text begin Maydeleted text end new text begin Junenew text end 15, whichever is earlier.
new text begin (c) 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. new text end
new text begin (d)new text end The commissioner shall conduct the conference 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 commissioner's valuation certification or notice to the company, or by the date specified by the commissioner in an extension. Within 60 days after the conference the commissioner shall make a final determination of the matter and shall notify the company promptly of the determination. The conference is not a contested case hearing.
deleted text begin (b)deleted text end new text begin (e)new text end 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.
new text begin This section is effective beginning with assessment year 2014. new text end
As used in sections 273.39 to 273.41, the term "rural area" shall be deemed to mean any area of the state not included within the boundaries of any deleted text begin incorporateddeleted text end new text begin statutory city or home rule charternew text end city, and such term shall be deemed to include both farm and nonfarm population thereof.
new text begin This section is effective the day following final enactment. new text end
Within five days after the filing of such list, the court administrator shall return a copy thereof to the county auditor, with a notice prepared and signed by the court administrator, and attached thereto, which may be substantially in the following form:
State of Minnesota | ) | ||
) ss. | |||
County of . | ) | ||
District Court | |||
. Judicial District. |
The state of Minnesota, to all persons, companies, or corporations who have or claim any estate, right, title, or interest in, claim to, or lien upon, any of the several parcels of land described in the list hereto attached:
The list of taxes and penalties on real property for the county of ............................... remaining delinquent on the first Monday in January, ......., has been filed in the office of the court administrator of the district court of said county, of which that hereto attached is a copy. Therefore, you, and each of you, are hereby required to file in the office of said court administrator, on or before the 20th day after the publication of this notice and list, your answer, in writing, setting forth any objection or defense you may have to the taxes, or any part thereof, upon any parcel of land described in the list, in, to, or on which you have or claim any estate, right, title, interest, claim, or lien, and, in default thereof, judgment will be entered against such parcel of land for the taxes on such list appearing against it, and for all penalties, interest, and costs. Based upon said judgment, the land shall be sold to the state of Minnesota on the second Monday in May, ....... deleted text begin The period of redemption for all lands sold to the state at a tax judgment sale shall be three years from the date of sale to the state of Minnesota if the land is within an incorporated area unless it is:deleted text end
deleted text begin (a) nonagricultural homesteaded land as defined in section 273.13, subdivision 22; deleted text end
deleted text begin (b) homesteaded agricultural land as defined in section 273.13, subdivision 23, paragraph (a); deleted text end
deleted text begin (c) seasonal residential recreational land as defined in section 273.13, subdivisions 22, paragraph (c), and 25, paragraph (d), clause (1), in which event the period of redemption is five years from the date of sale to the state of Minnesota; deleted text end
deleted text begin (d) abandoned property and pursuant to section 281.173 a court order has been entered shortening the redemption period to five weeks; or deleted text end
deleted text begin (e) vacant property as described under section 281.174, subdivision 2, and for which a court order is entered shortening the redemption period under section 281.174. deleted text end
deleted text begin The period of redemption for all other lands sold to the state at a tax judgment sale shall be five years from the date of sale. deleted text end
Inquiries as to the proceedings set forth above can be made to the county auditor of ..... county whose address is ......
(Signed) . , | |
Court Administrator of the District Court of the
County of . |
|
(Here insert list.) |
new text begin The notice must contain a narrative description of the various periods to redeem specified in sections 281.17, 281.173, and 281.174, in the manner prescribed by the commissioner of revenue under subdivision 2. new text end
The list referred to in the notice shall be substantially in the following form:
List of real property for the county of ......................., on which taxes remain delinquent on the first Monday in January, .......
Town of (Fairfield),
Township (40), Range (20),
Names (and Current Filed Addresses) for the Taxpayers and Fee Owners and in Addition Those Parties Who Have Filed Their Addresses Pursuant to section 276.041 | Subdivision of Section |
Section | Tax Parcel Number |
Total Tax and Penalty |
$ cts. | ||||
John Jones (825 Fremont Fairfield, MN 55000) | S.E. 1/4 of S.W. 1/4 | 10 | 23101 | 2.20 |
Bruce Smith (2059 Hand Fairfield, MN 55000) and Fairfield State Bank (100 Main Street Fairfield, MN 55000) | That part of N.E. 1/4 of S.W. 1/4 desc. as follows: Beg. at the S.E. corner of said N.E. 1/4 of S.W. 1/4; thence N. along the E. line of said N.E. 1/4 of S.W. 1/4 a distance of 600 ft.; thence W. parallel with the S. line of said N.E. 1/4 of S.W. 1/4 a distance of 600 ft.; thence S. parallel with said E. line a distance of 600 ft. to S. line of said N.E. 1/4 of S.W. 1/4; thence E. along said S. line a distance of 600 ft. to the point of beg. | 21 | 33211 | 3.15 |
As to platted property, the form of heading shall conform to circumstances and be substantially in the following form:
City of (Smithtown)
Brown's Addition, or Subdivision
Names (and Current Filed Addresses) for the Taxpayers and Fee Owners and in Addition Those Parties Who Have Filed Their Addresses Pursuant to section 276.041 | Lot | Block | Tax Parcel Number |
Total Tax and Penalty |
$ cts. | ||||
John Jones (825 Fremont Fairfield, MN 55000) | 15 | 9 | 58243 | 2.20 |
Bruce Smith (2059 Hand Fairfield, MN 55000) and Fairfield State Bank (100 Main Street Fairfield, MN 55000) | 16 | 9 | 58244 | 3.15 |
The names, descriptions, and figures employed in parentheses in the above forms are merely for purposes of illustration.
The name of the town, township, range or city, and addition or subdivision, as the case may be, shall be repeated at the head of each column of the printed lists as brought forward from the preceding column.
Errors in the list shall not be deemed to be a material defect to affect the validity of the judgment and sale.
new text begin This section is effective for lists and notices required after December 31, 2013. new text end
The commissioner shall approve all initial applications that qualify under this chapter and shall notify qualifying homeowners on or before December 1. The commissioner may investigate the facts or require confirmation in regard to an application. The commissioner shall record or file a notice of qualification for deferral, including the names of the qualifying homeowners and a legal description of the property, in the office of the county recorder, or registrar of titles, whichever is applicable, in the county where the qualifying property is located. The notice must state that it serves as a notice of lien and that it includes deferrals under this section for future years.new text begin The commissioner shall prescribe the form of the notice. Execution of the notice by the original or facsimile signature of the commissioner or a delegate entitles them to be recorded, and no other attestation, certification, or acknowledgment is necessary.new text end The homeowner shall pay the recording or filing fees for the notice, which, notwithstanding section 357.18, shall be paid by the homeowner at the time of satisfaction of the lien.
new text begin This section is effective for notices that are both executed and recorded after June 30, 2013. new text end
Every person engaged in the business of mining, refining, or producing ores, metals, or minerals in this state, except iron ore or taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided in this subdivision. For purposes of this subdivision, mining includes the application of hydrometallurgical processes.new text begin Hydrometallurgical processes are processes that extract the ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and recover the ore, metal, or mineral.new text end The tax is determined in the same manner as the tax imposed by section 290.02, except that sections 290.05, subdivision 1, clause (a), 290.17, subdivision 4, and 290.191, subdivision 2, do not apply, and the occupation tax must be computed by applying to taxable income the rate of 2.45 percent. A person subject to occupation tax under this section shall apportion its net income on the basis of the percentage obtained by taking the sum of:
(1) 75 percent of the percentage which the sales made within this state in connection with the trade or business during the tax period are of the total sales wherever made in connection with the trade or business during the tax period;
(2) 12.5 percent of the percentage which the total tangible property used by the taxpayer in this state in connection with the trade or business during the tax period is of the total tangible property, wherever located, used by the taxpayer in connection with the trade or business during the tax period; and
(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred in this state or paid in respect to labor performed in this state in connection with the trade or business during the tax period are of the taxpayer's total payrolls paid or incurred in connection with the trade or business during the tax period.
The tax is in addition to all other taxes.
new text begin This section is effective the day following final enactment. new text end
The proceeds of the tax paid under sections 298.015 and 298.016 onnew text begin ores, metals, ornew text end minerals deleted text begin and energy resourcesdeleted text end mined or extracted within the taconite assistance area defined in section 273.1341, shall be allocated as follows:
(1) five percent to the city or town within which the minerals or energy resources are mined or extracted;
(2) ten percent to the taconite municipal aid account to be distributed as provided in section 298.282;
(3) ten percent to the school district within which the minerals or energy resources are mined or extracted;
(4) 20 percent to a group of school districts comprised of those school districts wherein the mineral or energy resource was mined or extracted or in which there is a qualifying municipality as defined by section 273.134, paragraph (b), in direct proportion to school district indexes as follows: for each school district, its pupil units determined under section 126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted net tax capacity per pupil unit for school districts receiving aid under this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that portion of the distribution which its index bears to the sum of the indices for all school districts that receive the distributions;
(5) 20 percent to the county within which the minerals or energy resources are mined or extracted;
(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be distributed as provided in sections 273.134 to 273.136;
(7) five percent to the Iron Range Resources and Rehabilitation Board for the purposes of section 298.22;
(8) five percent to the Douglas J. Johnson economic protection trust fund; and
(9) five percent to the taconite environmental protection fund.
The proceeds of the tax shall be distributed on July 15 each year.
The proceeds of the tax paid under sections 298.015 and 298.016 onnew text begin ores, metals, ornew text end minerals deleted text begin and energy resourcesdeleted text end mined or extracted outside of the taconite assistance area defined in section 273.1341, shall be deposited in the general fund.
new text begin This section is effective the day following final enactment. new text end
(a) Each county is a body politic and corporate and may:
(1) Sue and be sued.
(2) Acquire and hold real and personal property for the use of the county, and lands sold for taxes as provided by law.
(3) Purchase and hold for the benefit of the county real estate sold by virtue of judicial proceedings, to which the county is a party.
(4) Sell, lease, and convey real or personal estate owned by the county, and give contracts or options to sell, lease, or convey it, and make orders respecting it as deemed conducive to the interests of the county's inhabitants.
(5) Make all contracts and do all other acts in relation to the property and concerns of the county necessary to the exercise of its corporate powers.
(b) No sale, lease, or conveyance of real estate owned by the county, except the lease of a residence acquired for the furtherance of an approved capital improvement project, nor any contract or option for it, shall be valid, without first advertising for bids or proposals in the official newspaper of the county for three consecutive weeks and once in a newspaper of general circulation in the area where the property is located. The notice shall state the time and place of considering the proposals, contain a legal description of any real estate, and a brief description of any personal property. Leases that do not exceed $15,000 for any one year may be negotiated and are not subject to the competitive bid procedures of this section. All proposals estimated to exceed $15,000 in any one year shall be considered at the time set for the bid opening, and the one most favorable to the county accepted, but the county board may, in the interest of the county, reject any or all proposals.
(c) Sales of personal property the value of which is estimated to be $15,000 or more shall be made only after advertising for bids or proposals in the county's official newspaper, on the county's Web site, or in a recognized industry trade journal. At the same time it posts on its Web site or publishes in a trade journal, the county must publish in the official newspaper, either as part of the minutes of a regular meeting of the county board or in a separate notice, a summary of all requests for bids or proposals that the county advertises on its Web site or in a trade journal. After publication in the official newspaper, on the Web site, or in a trade journal, bids or proposals may be solicited and accepted by the electronic selling process authorized in section 471.345, subdivision 17. Sales of personal property the value of which is estimated to be less than $15,000 may be made either on competitive bids or in the open market, in the discretion of the county board. "Web site" means a specific, addressable location provided on a server connected to the Internet and hosting World Wide Web pages and other files that are generally accessible on the Internet all or most of a day.
(d) Notwithstanding anything to the contrary herein, the county may, when acquiring real property for county highway right-of-way, exchange parcels of real property of substantially similar or equal value without advertising for bids. The estimated values for these parcels shall be determined by the county assessor.
(e) Notwithstanding anything in this section to the contrary, the county may, when acquiring real property for purposes other than county highway right-of-way, exchange parcels of real property of substantially similar or equal value without advertising for bids. The estimated values for these parcels must be determined by the county assessor or a private appraisal performed by a licensed Minnesota real estate appraiser. new text begin For the purpose of determining for the county the estimated values of parcels proposed to be exchanged, the county assessor need not be licensed under chapter 82B. new text end Before giving final approval to any exchange of land, the county board shall hold a public hearing on the exchange. At least two weeks before the hearing, the county auditor shall post a notice in the auditor's office and the official newspaper of the county of the hearing that contains a description of the lands affected.
(f) If real estate or personal property remains unsold after advertising for and consideration of bids or proposals the county may employ a broker to sell the property. The broker may sell the property for not less than 90 percent of its appraised market value as determined by the county. The broker's fee shall be set by agreement with the county but may not exceed ten percent of the sale price and must be paid from the proceeds of the sale.
(g) A county or its agent may rent a county-owned residence acquired for the furtherance of an approved capital improvement project subject to the conditions set by the county board and not subject to the conditions for lease otherwise provided by paragraph (a), clause (4), and paragraphs (b), (c), (d), (f), and (h).
(h) In no case shall lands be disposed of without there being reserved to the county all iron ore and other valuable minerals in and upon the lands, with right to explore for, mine and remove the iron ore and other valuable minerals, nor shall the minerals and mineral rights be disposed of, either before or after disposition of the surface rights, otherwise than by mining lease, in similar general form to that provided by section 93.20 for mining leases affecting state lands. The lease shall be for a term not exceeding 50 years, and be issued on a royalty basis, the royalty to be not less than 25 cents per ton of 2,240 pounds, and fix a minimum amount of royalty payable during each year, whether mineral is removed or not. Prospecting options for mining leases may be granted for periods not exceeding one year. The options shall require, among other things, periodical showings to the county board of the results of exploration work done.
(i) Notwithstanding anything in this subdivision to the contrary, the county may, when selling real property owned in fee simple that cannot be improved because of noncompliance with local ordinances regarding minimum area, shape, frontage, or access, proceed to sell the nonconforming parcel without advertising for bid. At the county's discretion, the real property may be restricted to sale to adjoining landowners or may be sold to any other interested party. The property shall be sold to the highest bidder, but in no case shall the property be sold for less than 90 percent of its fair market value as determined by the county assessor. All owners of land adjoining the land to be sold shall be given a written notice at least 30 days before the sale. This paragraph shall be liberally construed to encourage the sale of nonconforming real property and promote its return to the tax roles.
new text begin This section is effective the day following final enactment. new text end
new text begin Minnesota Statutes 2012, sections 272.69; and 273.11, subdivisions 1a and 22, new text end new text begin are repealed. new text end
new text begin This section is effective the day following final enactment. new text end
The commissioner may issue a duplicate of an unpaid warrant to an owner if the owner certifies that the original was lost or destroyed. The commissioner may require certification be documented by affidavit. new text begin The commissioner may refuse to issue a duplicate of an unpaid state warrant. If the commissioner acts in good faith, the commissioner is not liable, whether the application is granted or denied.new text end
When the duplicate is issued, the original is void. The commissioner may require an indemnity bond from the applicant to the state for double the amount of the warrant for anyone damaged by the issuance of the duplicate. The commissioner deleted text begin may refuse to issue a duplicate of an unpaid state warrant. If the commissioner acts in good faith the commissioner is not liable, whether the application is granted or denieddeleted text end new text begin is not liable to any holder who took the void original warrant for value, whether or not the commissioner required an indemnity bond from the applicantnew text end .
For an unpaid refund or rebate issued under a tax law administered by the commissioner of revenue that has been lost or destroyed, an affidavit is not required for the commissioner to issue a duplicate if the duplicate is issued to the same name and Social Security number as the original warrant and that information is verified on a tax return filed by the recipient.
new text begin This section is effective the day following final enactment. new text end
new text begin (a) new text end 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.
new text begin (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 end
new text begin This section is effective the day following final enactment. new text end
In addition to other applicable penalties imposed by law, after notification from the commissioner to the taxpayer that payments for a tax payable to the commissioner are required to be made by electronic means, and the payments are remitted by some other means, there is a penalty in the amount of five percent of each payment that should have been remitted electronically. After the commissioner's initial notification to the taxpayer that payments are required to be made by electronic means, the commissioner is not required to notify the taxpayer in subsequent periods if the initial notification specified the amount of tax liability at which a taxpayer is required to remit payments by electronic means. The penalty can be abated under the abatement procedures prescribed in section 270C.34 if the failure to remit the payment electronically is due to reasonable cause. The penalty bears interest at the rate specified in section 270C.40 from the deleted text begin duedeleted text end date deleted text begin of the payment of the taxdeleted text end new text begin provided in section 270C.40, subdivision 3,new text end to the date of payment of the penalty.
new text begin This section is effective the day following final enactment. new text end
A penalty imposed under this chapter bears interest from the date deleted text begin payment was required to be paid, including any extensions,deleted text end new text begin provided in section 270C.40, subdivision 3,new text end to the date of payment of the penalty.
new text begin This section is effective the day following final enactment. new text end
(a) A penalty imposed under section 289A.60, subdivision 1, 2, 2a, 4, 5, 6, or 21 bears interest from the date deleted text begin the return or payment was required to be filed or paid, including any extensionsdeleted text end new text begin provided in section 270C.40, subdivision 3new text end , to the date of payment of the penalty.
(b) A penalty not included in paragraph (a) bears interest only if it is not paid within 60 days from the date of notice. In that case interest is imposed from the date of notice to the date of payment.
new text begin This section is effective the day following final enactment. new text end
(a) The commissioner of revenue shall impose a penalty for substantial understatement of any tax payable to the commissioner, except a tax imposed under chapter 297A.
(b) There must be added to the tax an amount equal to 20 percent of the amount of any underpayment attributable to the understatement. There is a substantial understatement of tax for the period if the amount of the understatement for the period exceeds the greater of:
(1) ten percent of the tax required to be shown on the return for the period; or
(2)(i) $10,000 in the case of a mining company or a corporation, other than an S corporation as defined in section 290.9725, when the tax is imposed by chapter 290 or section 298.01 or 298.015, or
(ii) $5,000 in the case of any other taxpayer, and in the case of a mining company or a corporation any tax not imposed by chapter 290 or section 298.01 or 298.015.
(c) For a corporation, other than an S corporation, there is also a substantial understatement of tax for any taxable year if the amount of the understatement for the taxable year exceeds the lesser of:
(1) ten percent of the tax required to be shown on the return for the taxable year (or, if greater, $10,000); or
(2) $10,000,000.
(d) The term "understatement" means the excess of the amount of the tax required to be shown on the return for the period, over the amount of the tax imposed that is shown on the return. The excess must be determined without regard to items to which subdivision 27 applies. The amount of the understatement shall be reduced by that part of the understatement that is attributable to the tax treatment of any item by the taxpayer if (1) there is or was substantial authority for the treatment, or (2)(i) any item with respect to which the relevant facts affecting the item's tax treatment are adequately disclosed in the return or in a statement attached to the return and (ii) there is a reasonable basis for the tax treatment of the item. The exception for substantial authority under clause (1) does not apply to positions listed by the Secretary of the Treasury under section 6662(d)(3) of the Internal Revenue Code. A corporation does not have a reasonable basis for its tax treatment of an item attributable to a multiple-party financing transaction if the treatment does not clearly reflect the income of the corporation within the meaning of section 6662(d)(2)(B) of the Internal Revenue Code. The special rules in cases involving tax shelters provided in section 6662(d)(2)(C) of the Internal Revenue Code shall apply and shall apply to a tax shelter the principal purpose of which is the avoidance or evasion of state taxes.
(e) The commissioner may abate all or any part of the addition to the tax provided by this section on a showing by the taxpayer that there was reasonable cause for the understatement, or part of it, and that the taxpayer acted in good faith. The additional tax and penalty shall bear interest deleted text begin at the ratedeleted text end new text begin asnew text end specified in section 270C.40 deleted text begin from the time the tax should have been paiddeleted text end until paid.
new text begin This section is effective the day following final enactment. new text end
"Aviation gasoline" means any gasoline that is capable of use for the purpose of producing or generating power for propelling internal combustion engine aircraft, that meets the specifications in ASTM specification deleted text begin D910-07adeleted text end new text begin D910-11new text end , and that either:
(1) is invoiced and billed by a producer, manufacturer, refiner, or blender to a distributor or dealer, by a distributor to a dealer or consumer, or by a dealer to consumer, as "aviation gasoline"; or
(2) whether or not invoiced and billed as provided in clause (1), is received, sold, stored, or withdrawn from storage by any person, to be used for the purpose of producing or generating power for propelling internal combustion engine aircraft.
new text begin This section is effective the day following final enactment. new text end
"Aviation turbine fuel" and "jet fuel" mean blends of hydrocarbons derived from crude petroleum, natural gasoline, and synthetic hydrocarbons, intended for use in aviation turbine engines, and that meet the specifications in ASTM specification deleted text begin D1655-08adeleted text end new text begin D1655-12new text end .
new text begin This section is effective the day following final enactment. new text end
new text begin "Biobutanol" means isobutyl alcohol produced by fermenting agriculturally generated organic material that is to be blended with gasoline and meets either: new text end
new text begin (1) the initial ASTM Standard Specification for Butanol for Blending with Gasoline for use as an Automotive Spark-Ignition Engine Fuel once it has been released by ASTM for general distribution; or new text end
new text begin (2) in the absence of an ASTM Standard Specification, the following list of requirements: new text end
new text begin (i) visually free of sediment and suspended matter; new text end
new text begin (ii) clear and bright at the ambient temperature of 21 degrees Celsius or the ambient temperature whichever is higher; new text end
new text begin (iii) free of any adulterant or contaminant that can render it unacceptable for its commonly used applications; new text end
new text begin (iv) contains not less than 96 volume percent isobutyl alcohol; new text end
new text begin (v) contains not more than 0.4 volume percent methanol; new text end
new text begin (vi) contains not more than 1.0 volume percent water as determined by ASTM standard test method E203 or E1064; new text end
new text begin (vii) acidity (as acetic acid) of not more than 0.007 mass percent as determined by ASTM standard test method D1613; new text end
new text begin (viii) solvent washed gum content of not more than 5.0 milligrams per 100 milliliters as determined by ASTM standard test method D381; new text end
new text begin (ix) sulfur content of not more than 30 parts per million as determined by ASTM standard test method D2622 or D5453; and new text end
new text begin (x) contains not more than 4 parts per million total inorganic sulfate. new text end
"Diesel fuel oil" means a petroleum distillate or blend of petroleum distillate and residual fuels that is intended for use as a motor fuel in internal combustion diesel engines and that meets ASTM specification deleted text begin D975-07bdeleted text end new text begin D975-11bnew text end .
new text begin This section is effective the day following final enactment. new text end
"E85" means a petroleum product that is a blend of agriculturally derived denatured ethanol and gasoline or natural gasoline that deleted text begin typicallydeleted text end containsnew text begin not more thannew text end 85 percent ethanol by volume, but at a minimum must contain deleted text begin 60deleted text end new text begin greater than 50new text end percent ethanol by volume. For the purposes of this chapter, the energy content of E85 will be considered to be 82,000 BTUs per gallon. E85 produced for use as a motor fuel in alternative fuel vehicles as defined in subdivision 5 must comply with ASTM specification deleted text begin D5798-07deleted text end new text begin D5798-11new text end .
new text begin This section is effective the day following final enactment. new text end
"Ethanol, denatured" means ethanol that is to be blended with gasoline, has been agriculturally derived, and complies with ASTM specification deleted text begin D4806-08deleted text end new text begin D4806-11anew text end . This includes the requirement that ethanol may be denatured only as specified in Code of Federal Regulations, title 27, parts 20 and 21.
new text begin This section is effective the day following final enactment. new text end
(a) "Gasoline" means:
(1) all products commonly or commercially known or sold as gasoline regardless of their classification or uses, except casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural gasoline that under the requirements of section 239.761, subdivision 3, must not be blended with gasoline that has been sold, transferred, or otherwise removed from a refinery or terminal; and
(2) any liquid prepared, advertised, offered for sale or sold for use as, or commonly and commercially used as, a fuel in spark-ignition, internal combustion engines, and that when tested by the Weights and Measures Division meets the specifications in ASTM specification deleted text begin D4814-08bdeleted text end new text begin D4814-11bnew text end .
(b) Gasoline that is not blended with ethanol must not be contaminated with water or other impurities and must comply with both ASTM specification deleted text begin D4814-08bdeleted text end new text begin D4814-11bnew text end and the volatility requirements in Code of Federal Regulations, title 40, part 80.
(c) After gasoline is sold, transferred, or otherwise removed from a refinery or terminal, a person responsible for the product:
(1) may blend the gasoline with agriculturally derived ethanol, as provided in subdivision 24;
(2) must not blend the gasoline with any oxygenate other than denatured, agriculturally derived ethanol;
(3) must not blend the gasoline with other petroleum products that are not gasoline or denatured, agriculturally derived ethanol;
(4) must not blend the gasoline with products commonly and commercially known as casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural gasoline; and
(5) may blend the gasoline with a detergent additive, an antiknock additive, or an additive designed to replace tetra-ethyl lead, that is registered by the EPA.
new text begin This section is effective the day following final enactment. new text end
"Gasoline blended with nonethanol oxygenate" means gasoline blended with ETBE, MTBE, or other alcohol or ether, except denatured ethanol, that is approved as an oxygenate by the EPA, and that complies with ASTM specification deleted text begin D4814-08bdeleted text end new text begin D4814-11bnew text end . Oxygenates, other than denatured ethanol, must not be blended into gasoline after the gasoline has been sold, transferred, or otherwise removed from a refinery or terminal.
new text begin This section is effective the day following final enactment. new text end
"Heating fuel oil" means a petroleum distillate, blend of petroleum distillates and residuals, or petroleum residual heating fuel that meets the specifications in ASTM specification deleted text begin D396-08bdeleted text end new text begin D396-12new text end .
new text begin This section is effective the day following final enactment. new text end
Upon the failure of any person to pay any tax or fee when due, a penalty of one percent per day for the first ten days of delinquency shall accrue, and thereafter the tax, fees, and penalty shall bear interest at the rate specified in section 270C.40new text begin until paidnew text end .
new text begin This section is effective the day following final enactment. new text end
If any person operates as a distributor, special fuel dealer, bulk purchaser, or motor carrier without first securing the license required under this chapter, any tax or fee imposed by this chapter shall become immediately due and payable. A penalty of 25 percent is imposed upon the tax and fee due. The taxdeleted text begin ,deleted text end new text begin andnew text end feesdeleted text begin , and penaltydeleted text end shall bear interest at the rate specified in section 270C.40.new text begin The penalty imposed in this subdivision shall bear interest from the date provided in section 270C.40, subdivision 3, to the date of payment of the penalty.new text end
new text begin This section is effective the day following final enactment. new text end
The state commissioner of revenue is charged with the administration of the sales tax on motor vehicles. The commissioner may prescribe all rules not inconsistent with the provisions of this chapter, necessary and advisable for the proper and efficient administration of the law. The collection of this sales tax on motor vehicles shall be carried out by the motor vehicle registrar who shall act as the agent of the commissioner and who shall be subject to all rules not inconsistent with the provisions of this chapter, that may be prescribed by the commissioner.
The provisions of chapters 270C, 289A, and 297A relating to the commissioner's authority to audit, assess, and collect the tax, and to issue refunds and to hear appeals, are applicable to the sales tax on motor vehicles. The commissioner may impose civil penalties as provided in chapters 289A and 297A, and the additional tax and penalties are subject to interest at the rate provided in section 270C.40new text begin from the date provided in section 270C.40, subdivision 3, until paidnew text end .
new text begin This section is effective the day following final enactment. new text end
(a) A penalty imposed under section 297E.12, subdivision 1, 2, 3, 4, or 5, bears interest from the date deleted text begin the return or payment was required to be filed or paid, including any extensionsdeleted text end new text begin provided in section 270C.40, subdivision 3new text end , to the date of payment of the penalty.
(b) A penalty not included in paragraph (a) bears interest only if it is not paid within ten days from the date of notice. In that case interest is imposed from the date of notice to the date of payment.
new text begin This section is effective the day following final enactment. new text end
The amount of tax not timely paiddeleted text begin , together with any penalty imposed in this section,deleted text end bears interest at the rate specified in section 270C.40 from the time such tax should have been paid until paid.new text begin The penalty imposed in this section bears interest at the rate specified in section 270C.40 from the date provided in section 270C.40, subdivision 3, to the date of payment of the penalty.new text end Any interest and penalty is added to the tax and collected as a part of it.
new text begin This section is effective the day following final enactment. new text end
(a) A penalty imposed under section 297F.19, subdivisions 2 to 7, bears interest from the date deleted text begin the return or payment was required to be deleted text end deleted text begin filed or paid, including any extensionsdeleted text end new text begin provided in section 270C.40, subdivision 3new text end , to the date of payment of the penalty.
(b) A penalty not included in paragraph (a) bears interest only if it is not paid within ten days from the date of the notice. In that case interest is imposed from the date of notice to the date of payment.
new text begin This section is effective the day following final enactment. new text end
The amount of tax not timely paiddeleted text begin , together with any penalty imposed by this chapter,deleted text end bears interest at the rate specified in section 270C.40 from the time the tax should have been paid until paid.new text begin Any penalty imposed by this chapter bears interest from the date provided in section 270C.40, subdivision 3, to the date of payment of the penalty.new text end Any interest and penalty is added to the tax and collected as a part of it.
new text begin This section is effective the day following final enactment. new text end
(a) A penalty imposed under section 297G.18, subdivisions 2 to 7, bears interest from the date deleted text begin the return or payment was required to be filed or paid, including any extensionsdeleted text end new text begin provided in section 270C.40, subdivision 3new text end , to the date of payment of the penalty.
(b) A penalty not included in paragraph (a) bears interest only if it is not paid within ten days from the date of the notice. In that case interest is imposed from the date of notice to the date of payment.
new text begin This section is effective the day following final enactment. new text end
(a) When interest is required under this section, interest is computed at the rate specified in section 270C.40.
(b) If a tax or surcharge is not paid within the time named by law for payment, the unpaid tax or surcharge bears interest from the date the tax or surcharge should have been paid until the date the tax or surcharge is paid.
(c) Whenever a taxpayer is liable for additional tax or surcharge because of a redetermination by the commissioner or other reason, the additional tax or surcharge bears interest from the time the tax or surcharge should have been paid until the date the tax or surcharge is paid.
(d) A penalty bears interest from the date deleted text begin the return or payment was required to be filed or paiddeleted text end new text begin provided in section 270C.40, subdivision 3,new text end to the date of payment of the penalty.
new text begin This section is effective the day following final enactment. new text end
(a) For the repayment of taxes imposed under chapter 290 or 297A or local taxes collected pursuant to section 297A.99, a business must file an amended return with the commissioner of revenue and pay any taxes required to be repaid within 30 days after becoming subject to repayment under this section. The amount required to be repaid is determined by calculating the tax for the period or periods for which repayment is required without regard to the exemptions and credits allowed under section 469.315.
(b) For the repayment of taxes imposed under chapter 297B, a business must pay any taxes required to be repaid to the motor vehicle registrar, as agent for the commissioner of revenue, within 30 days after becoming subject to repayment under this section.
(c) For the repayment of property taxes, the county auditor shall prepare a tax statement for the business, applying the applicable tax extension rates for each payable year and provide a copy to the business and to the taxpayer of record. The business must pay the taxes to the county treasurer within 30 days after receipt of the tax statement. The business or the taxpayer of record may appeal the valuation and determination of the property tax to the Tax Court within 30 days after receipt of the tax statement.
(d) The provisions of chapters 270C and 289A relating to the commissioner's authority to audit, assess, and collect the tax and to hear appeals are applicable to the repayment required under paragraphs (a) and (b). The commissioner may impose civil penalties as provided in chapter 289A, and the additional tax and penalties are subject to interest at the rate provided in section 270C.40deleted text begin ,deleted text end new text begin . The additional tax shall bear interestnew text end from 30 days after becoming subject to repayment under this section until the date the tax is paid.new text begin Any penalty imposed pursuant to this section shall bear interest from the date provided in section 270C.40, subdivision 3, to the date of payment of the penalty.new text end
(e) If a property tax is not repaid under paragraph (c), the county treasurer shall add the amount required to be repaid to the property taxes assessed against the property for payment in the year following the year in which the auditor provided the statement under paragraph (c).
(f) For determining the tax required to be repaid, a reduction of a state or local sales or use tax is deemed to have been received on the date that the good or service was purchased or first put to a taxable use. In the case of an income tax or franchise tax, including the credit payable under section 469.318, a reduction of tax is deemed to have been received for the two most recent tax years that have ended prior to the date that the business became subject to repayment under this section. In the case of a property tax, a reduction of tax is deemed to have been received for the taxes payable in the year that the business became subject to repayment under this section and for the taxes payable in the prior year.
(g) The commissioner may assess the repayment of taxes under paragraph (d) any time within two years after the business becomes subject to repayment under subdivision 1, or within any period of limitations for the assessment of tax under section 289A.38, whichever period is later. The county auditor may send the statement under paragraph (c) any time within three years after the business becomes subject to repayment under subdivision 1.
(h) A business is not entitled to any income tax or franchise tax benefits, including refundable credits, for any part of the year in which the business becomes subject to repayment under this section nor for any year thereafter. Property is not exempt from tax under section 272.02, subdivision 64, for any taxes payable in the year following the year in which the property became subject to repayment under this section nor for any year thereafter. A business is not eligible for any sales tax benefits beginning with goods or services purchased or first put to a taxable use on the day that the business becomes subject to repayment under this section.
new text begin This section is effective the day following final enactment. new text end
(a) For the repayment of taxes imposed under chapter 290 or 297A or local taxes collected pursuant to section 297A.99, a business must file an amended return with the commissioner of revenue and pay any taxes required to be repaid within 30 days after ceasing to do business in the zone. The amount required to be repaid is determined by calculating the tax for the period or periods for which repayment is required without regard to the exemptions and credits allowed under section 469.336.
(b) For the repayment of property taxes, the county auditor shall prepare a tax statement for the business, applying the applicable tax extension rates for each payable year and provide a copy to the business. The business must pay the taxes to the county treasurer within 30 days after receipt of the tax statement. The taxpayer may appeal the valuation and determination of the property tax to the Tax Court within 30 days after receipt of the tax statement.
(c) The provisions of chapters 270C and 289A relating to the commissioner's authority to audit, assess, and collect the tax and to hear appeals are applicable to the repayment required under paragraph (a). The commissioner may impose civil penalties as provided in chapter 289A, and the additional tax and penalties are subject to interest at the rate provided in section 270C.40deleted text begin ,deleted text end new text begin . The additional tax shall bear interestnew text end from 30 days after ceasing to do business in the biotechnology and health sciences industry zone until the date the tax is paid.new text begin Any penalty imposed pursuant to this section shall bear interest from the date provided in section 270C.40, subdivision 3, to the date of payment of the penalty.new text end
(d) If a property tax is not repaid under paragraph (b), the county treasurer shall add the amount required to be repaid to the property taxes assessed against the property for payment in the year following the year in which the treasurer discovers that the business ceased to operate in the biotechnology and health sciences industry zone.
(e) For determining the tax required to be repaid, a tax reduction is deemed to have been received on the date that the tax would have been due if the taxpayer had not been entitled to the exemption, or on the date a refund was issued for a refundable credit.
(f) The commissioner may assess the repayment of taxes under paragraph (c) any time within two years after the business ceases to operate in the biotechnology and health sciences industry zone, or within any period of limitations for the assessment of tax under section 289A.38, whichever period is later.
new text begin This section is effective the day following final enactment. new text end
Presented to the governor May 22, 2013
Signed by the governor May 23, 2013, 12:13 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes