1.1                          A bill for an act 
  1.2             relating to financing of government in this state; 
  1.3             providing for payment of sales tax rebates and 
  1.4             assistance to farmers; providing an income tax 
  1.5             deduction or credit for dependents; modifying the 
  1.6             treatment of certain types of income; modifying tax 
  1.7             administration provisions; authorizing the city of 
  1.8             Luverne to provide certain tax incentives; conforming 
  1.9             with federal income tax changes; reducing the rate of 
  1.10            the motor vehicle registration tax; exempting certain 
  1.11            sales from taxation; restricting local taxes on motor 
  1.12            vehicles; altering the imposition of the tax on 
  1.13            insurance premiums; modifying the provider tax; 
  1.14            reducing the rates of taxes on gambling; providing for 
  1.15            administration of the tax on cigarettes; prohibiting 
  1.16            distribution of certain types of cigarettes; providing 
  1.17            for property tax homestead treatment; providing for 
  1.18            certain property tax exemptions, credits, assessments, 
  1.19            appeals, notices, and refunds; reducing certain 
  1.20            property tax class rates; changing and providing for 
  1.21            certain payments in lieu of taxes; changing provisions 
  1.22            relating to tax increment financing, housing 
  1.23            improvement areas, county housing authorities, and 
  1.24            corporations created by political subdivisions; 
  1.25            authorizing election by local governments to provide 
  1.26            truth in taxation information on the Internet; 
  1.27            extending senior citizen property tax deferral to 
  1.28            certain taxes, special assessments, penalties, and 
  1.29            interest; providing for certain special assessments by 
  1.30            counties; modifying or increasing certain aids to 
  1.31            local governments; providing special authority to 
  1.32            certain political subdivisions; changing certain 
  1.33            forfeiture provision relating to plats; authorizing 
  1.34            issuance of certain obligations; providing for 
  1.35            studies; appropriating money; amending Minnesota 
  1.36            Statutes 1998, sections 16A.46; 60A.15, subdivision 1; 
  1.37            97A.061, by adding subdivisions; 168.013, subdivision 
  1.38            1a; 238.08, subdivision 3; 270.063, by adding a 
  1.39            subdivision; 270A.03, subdivision 2; 272.115, 
  1.40            subdivision 1; 273.124, by adding a subdivision; 
  1.41            273.1398, subdivision 4; 273.37, subdivision 3; 
  1.42            275.065, subdivisions 3, 8, and by adding 
  1.43            subdivisions; 275.066; 276.19, subdivision 1; 289A.08, 
  1.44            by adding a subdivision; 289A.35; 289A.60, subdivision 
  1.45            1; 290.01, by adding a subdivision; 290.17, 
  1.46            subdivision 2; 290B.04, by adding a subdivision; 
  2.1             290B.05, subdivision 3; 290B.07; 290B.08, subdivisions 
  2.2             1 and 2; 290B.09, subdivision 2; 295.50, subdivision 
  2.3             9b; 297A.01, subdivisions 3 and 15; 297A.15, by adding 
  2.4             a subdivision; 297A.25, subdivisions 5, 7, 65, and by 
  2.5             adding subdivisions; 297F.01, subdivision 17; 297F.08, 
  2.6             subdivisions 2, 4, 5, 8, and 9; 297F.21, subdivisions 
  2.7             1 and 3; 428A.11, by adding subdivisions; 428A.13, 
  2.8             subdivisions 1 and 3; 428A.14, subdivision 1; 428A.15; 
  2.9             428A.16; 428A.17; 428A.19; 428A.21; 429.011, 
  2.10            subdivisions 2a and 5; 429.021, subdivision 1; 
  2.11            429.031, subdivision 1; 469.003, subdivision 5; 
  2.12            469.006, subdivisions 1 and 2; 469.011, subdivision 4; 
  2.13            469.040, by adding a subdivision; 469.174, subdivision 
  2.14            10; 469.175, subdivisions 1a, 5, and 6; 469.176, 
  2.15            subdivision 1b; 469.1763, by adding a subdivision; 
  2.16            473.39, by adding a subdivision; 477A.011, by adding a 
  2.17            subdivision; 477A.0121, subdivision 4, and by adding a 
  2.18            subdivision; 477A.03, by adding a subdivision; 
  2.19            477A.06, subdivisions 2 and 3; 477A.11, subdivision 1; 
  2.20            477A.12; 477A.13; 477A.14; Minnesota Statutes 1999 
  2.21            Supplement, sections 16D.09, subdivision 2; 123B.54; 
  2.22            270.65; 272.02, subdivision 39, and by adding a 
  2.23            subdivision; 273.124, subdivisions 1 and 14; 273.13, 
  2.24            subdivisions 24 and 25; 273.1382, subdivision 1b; 
  2.25            273.1398, subdivisions 1a and 4a; 275.065, subdivision 
  2.26            5a; 275.71, subdivision 4; 289A.02, subdivision 7; 
  2.27            290.01, subdivisions 19, 19b, and 31; 290.091, 
  2.28            subdivision 2; 290A.03, subdivision 15; 290B.03, 
  2.29            subdivision 1; 290B.05, subdivision 1; 291.005, 
  2.30            subdivision 1; 295.53, subdivision 1; 297A.25, 
  2.31            subdivisions 9 and 11; 297E.02, subdivisions 1, 4, and 
  2.32            6; 297F.08, subdivision 8a; 383D.74; 473.39, 
  2.33            subdivision 1g; 477A.011, subdivision 36; 477A.03, 
  2.34            subdivision 2; 477A.06, subdivision 1; 505.08, 
  2.35            subdivision 3; Laws 1995, chapter 264, article 2, 
  2.36            section 44, as amended; Laws 1995, First Special 
  2.37            Session chapter 3, article 15, section 25; Laws 1999, 
  2.38            chapters 112, sections 1, subdivisions 2 and 7; and 2; 
  2.39            and 243, article 1, section 2; proposing coding for 
  2.40            new law in Minnesota Statutes, chapters 273; 278; 290; 
  2.41            297F; 465; and 477A; repealing Minnesota Statutes 
  2.42            1998, sections 297A.15, subdivision 7; 465.715, 
  2.43            subdivisions 1, 2, and 3; and 469.175, subdivision 6a; 
  2.44            Minnesota Statutes 1999 Supplement, section 465.715, 
  2.45            subdivision 1a; Minnesota Rules, part 8160.0300, 
  2.46            subpart 4. 
  2.47  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.48                             ARTICLE 1 
  2.49                       2000 SALES TAX REBATE 
  2.50     Section 1.  [STATEMENT OF PURPOSE.] 
  2.51     (a) The state of Minnesota derives revenues from a variety 
  2.52  of taxes, fees, and other sources, including the state sales tax.
  2.53     (b) It is fair and reasonable to refund the existing state 
  2.54  budget surplus in the form of a rebate of nonbusiness consumer 
  2.55  sales taxes paid by individuals in calendar year 1998. 
  2.56     (c) Information concerning the amount of sales tax paid at 
  2.57  various income levels is contained in the Minnesota tax 
  2.58  incidence report, which is written by the commissioner of 
  3.1   revenue and presented to the legislature according to Minnesota 
  3.2   Statutes, section 270.0682. 
  3.3      (d) It is fair and reasonable to use information contained 
  3.4   in the Minnesota tax incidence report to determine the 
  3.5   proportionate share of the sales tax rebate due each eligible 
  3.6   taxpayer since no effective or practical mechanism exists for 
  3.7   determining the amount of actual sales tax paid by each eligible 
  3.8   individual. 
  3.9      Sec. 2.  [SALES TAX REBATE.] 
  3.10     (a) An individual who: 
  3.11     (1) was eligible for a credit under Laws 1998, chapter 389, 
  3.12  article 1, section 1, and who filed for or received that credit 
  3.13  on or before November 30, 2000; or 
  3.14     (2) was a resident of Minnesota for any part of 1998, and 
  3.15  filed a 1998 Minnesota income tax return on or before November 
  3.16  30, 2000, and had a tax liability before refundable credits on 
  3.17  that return of at least $1 but did not file the claim for credit 
  3.18  authorized under Laws 1998, chapter 389, article 1, section 1, 
  3.19  and who was not allowed to be claimed as a dependent on a 1998 
  3.20  federal income tax return filed by another person; or 
  3.21     (3) had the property taxes payable on his or her homestead 
  3.22  abated to zero under Laws 1998, chapter 383, section 20, 
  3.23  shall receive a sales tax rebate. 
  3.24     (b) The sales tax rebate for taxpayers who qualify under 
  3.25  paragraph (a) as married filing joint or head of household must 
  3.26  be computed according to the following schedule: 
  3.27        Income                            Sales Tax Rebate
  3.28   less than $2,500                              $   91
  3.29   at least $2,500 but less than $5,000          $  118
  3.30   at least $5,000 but less than $10,000         $  126
  3.31   at least $10,000 but less than $15,000        $  138
  3.32   at least $15,000 but less than $20,000        $  150
  3.33   at least $20,000 but less than $25,000        $  163
  3.34   at least $25,000 but less than $30,000        $  170
  3.35   at least $30,000 but less than $35,000        $  184
  3.36   at least $35,000 but less than $40,000        $  201
  4.1    at least $40,000 but less than $45,000        $  216
  4.2    at least $45,000 but less than $50,000        $  227
  4.3    at least $50,000 but less than $60,000        $  242
  4.4    at least $60,000 but less than $70,000        $  259
  4.5    at least $70,000 but less than $80,000        $  285
  4.6    at least $80,000 but less than $90,000        $  306
  4.7    at least $90,000 but less than $100,000       $  338
  4.8    at least $100,000 but less than $120,000      $  366
  4.9    at least $120,000 but less than $140,000      $  401
  4.10   at least $140,000 but less than $160,000      $  433
  4.11   at least $160,000 but less than $180,000      $  464
  4.12   at least $180,000 but less than $200,000      $  493
  4.13   at least $200,000 but less than $400,000      $  630
  4.14   at least $400,000 but less than $600,000      $  829
  4.15   at least $600,000 but less than $800,000      $  995
  4.16   at least $800,000 but less than $1,000,000    $1,140
  4.17   $1,000,000 and over                           $1,500
  4.18     (c) The sales tax rebate for individuals who qualify under 
  4.19  paragraph (a) as single or married filing separately must be 
  4.20  computed according to the following schedule: 
  4.21        Income                                 Sales Tax Rebate
  4.22   less than $2,500                              $   52
  4.23   at least $2,500 but less than $5,000          $   63
  4.24   at least $5,000 but less than $10,000         $   74
  4.25   at least $10,000 but less than $15,000        $  100
  4.26   at least $15,000 but less than $20,000        $  114
  4.27   at least $20,000 but less than $25,000        $  124
  4.28   at least $25,000 but less than $30,000        $  129
  4.29   at least $30,000 but less than $40,000        $  141
  4.30   at least $40,000 but less than $50,000        $  158
  4.31   at least $50,000 but less than $70,000        $  186
  4.32   at least $70,000 but less than $100,000       $  237
  4.33   at least $100,000 but less than $140,000      $  285
  4.34   at least $140,000 but less than $200,000      $  344
  4.35   at least $200,000 but less than $400,000      $  467
  4.36   at least $400,000 but less than $600,000      $  614
  5.1    $600,000 and over                             $  875
  5.2      (d) Individuals who: 
  5.3      (1) were residents of Minnesota in 1998; 
  5.4      (2) attained the age of 18 on or before December 31, 1998; 
  5.5      (3) had at least $500 of qualifying income in 1998; and 
  5.6      (4) do not otherwise qualify for a rebate either 
  5.7   individually or as the spouse of an individual who receives a 
  5.8   rebate on the basis of a married joint filing status, 
  5.9   qualify for a rebate under this paragraph only.  If required to 
  5.10  do so by the commissioner, claimants under this paragraph must 
  5.11  file a claim for a rebate on a form prescribed by the 
  5.12  commissioner before the later of June 15, 2001, or 30 days after 
  5.13  the date of enactment of this act.  The commissioner shall 
  5.14  verify the information provided and rebate the minimum amount 
  5.15  for which the claimant would have been eligible as determined 
  5.16  under paragraph (b), as adjusted by paragraph (p), if the 
  5.17  taxpayer would have met the requirements to file a 1998 federal 
  5.18  income tax return as a married taxpayer filing jointly or head 
  5.19  of household, or as determined under paragraph (c), as adjusted 
  5.20  by paragraph (p), for other taxpayers.  Qualified claims for 
  5.21  rebate under this paragraph not paid by October 1, 2001, bear 
  5.22  interest at the rate specified in Minnesota Statutes, section 
  5.23  270.75.  As used in this paragraph only, "qualifying income" 
  5.24  means the sum of: 
  5.25     (1) self-employment income subject to the tax under section 
  5.26  1401(b) of the Internal Revenue Code of 1986, as amended through 
  5.27  December 31, 1997; plus 
  5.28     (2) wages subject to tax under section 3101(b) of the 
  5.29  Internal Revenue Code of 1986, as amended through December 31, 
  5.30  1997; plus 
  5.31     (3) amounts described in Minnesota Statutes, section 
  5.32  290A.03, subdivision 3, paragraph (b), clauses (iv), (v), (vi), 
  5.33  (vii), (viii), (ix), (x), and (xii). 
  5.34     As used in this paragraph, "qualifying income" does not 
  5.35  include any compensation paid to inmates at a state, local, 
  5.36  federal, or privately operated correctional facility as pay for 
  6.1   services performed by the inmate at the facility. 
  6.2      If the Social Security Administration or Railroad 
  6.3   Retirement Board is paying benefits to a recipient by electronic 
  6.4   funds transfers in 2000, the rebate under this paragraph must be 
  6.5   paid by the commissioner through electronic funds transfer to 
  6.6   the same financial institution and into the same account into 
  6.7   which the Social Security Administration or Railroad Retirement 
  6.8   Board transfers social security benefits in calendar year 2000. 
  6.9      (e) Individuals who were not residents of Minnesota for any 
  6.10  part of 1998 and who paid more than $10 in Minnesota sales tax 
  6.11  under Minnesota Statutes, chapters 297A and 297B, on nonbusiness 
  6.12  consumer purchases in that year qualify for a rebate under this 
  6.13  paragraph only.  Qualifying nonresidents must file a claim for 
  6.14  rebate on a form prescribed by the commissioner before November 
  6.15  30, 2000.  The claim must include receipts showing the Minnesota 
  6.16  sales tax paid and the date of the sale.  Taxes paid on 
  6.17  purchases allowed in the computation of federal taxable income 
  6.18  or reimbursed by an employer are not eligible for the rebate.  
  6.19  The commissioner shall determine the qualifying taxes paid and 
  6.20  rebate the lesser of: 
  6.21     (1) 16.18 percent of that amount; or 
  6.22     (2) the maximum amount for which the claimant would have 
  6.23  been eligible as determined under paragraph (b) if the taxpayer 
  6.24  filed the 1998 federal income tax return as a married taxpayer 
  6.25  filing jointly or head of household, or as determined under 
  6.26  paragraph (c) for other taxpayers. 
  6.27     (f) "Income," for purposes of this section other than 
  6.28  paragraph (e), is taxable income as defined in section 63 of the 
  6.29  Internal Revenue Code of 1986, as amended through December 31, 
  6.30  1997, plus the sum of any additions to federal taxable income 
  6.31  for the taxpayer under Minnesota Statutes, section 290.01, 
  6.32  subdivision 19a, and reported on the original 1998 income tax 
  6.33  return including subsequent adjustments to that return made 
  6.34  within the time limits specified in paragraph (i).  For an 
  6.35  individual who was a resident of Minnesota for less than the 
  6.36  entire year, income as determined under this paragraph must be 
  7.1   multiplied by the percentage determined pursuant to Minnesota 
  7.2   Statutes, section 290.06, subdivision 2c, paragraph (e), as 
  7.3   calculated on the original 1998 income tax return including 
  7.4   subsequent adjustments to that return made within the time 
  7.5   limits specified in paragraph (i).  For purposes of paragraph 
  7.6   (e), "income" is taxable income as defined in section 63 of the 
  7.7   Internal Revenue Code of 1986, as amended through December 31, 
  7.8   1997, and reported on the taxpayer's original federal tax return 
  7.9   for the first taxable year beginning after December 31, 1997. 
  7.10     (g) For a fiscal year taxpayer, the November 30, 2000, 
  7.11  dates in paragraphs (a) through (e) are extended one month for 
  7.12  each month in calendar year 1998 that occurred prior to the 
  7.13  start of the individual's 1998 fiscal tax year. 
  7.14     (h) Sales tax rebates not paid by April 1, 2001, bear 
  7.15  interest at the rate specified in Minnesota Statutes, section 
  7.16  270.75. 
  7.17     (i) A sales tax rebate shall not be adjusted based on 
  7.18  changes to a 1998 income tax return that are made by order of 
  7.19  assessment after June 15, 2000, or made by the taxpayer by 
  7.20  amended return that are filed with the commissioner of revenue 
  7.21  after June 15, 2000. 
  7.22     (j) Individuals who filed a joint income tax return for 
  7.23  1998 shall receive a joint sales tax rebate.  After the sales 
  7.24  tax rebate has been issued, but before the check has been 
  7.25  cashed, either joint claimant may request a separate check for 
  7.26  one-half of the joint sales tax rebate.  Notwithstanding 
  7.27  anything in this section to the contrary, if, prior to payment, 
  7.28  the commissioner has been notified that persons who filed a 
  7.29  joint 1998 income tax return are living at separate addresses, 
  7.30  as indicated on their 1999 income tax return or otherwise, the 
  7.31  commissioner may issue separate checks to each person.  The 
  7.32  amount payable to each person is one-half of the total joint 
  7.33  rebate. 
  7.34     If a rebate is received by the estate of a deceased 
  7.35  individual after the probate estate has been closed, and if the 
  7.36  original rebate check is returned to the commissioner with a 
  8.1   copy of the decree of descent or final account of the estate, 
  8.2   social security numbers, and addresses of the beneficiaries, the 
  8.3   commissioner may issue separate checks in proportion to their 
  8.4   share in the residuary estate in the names of the residuary 
  8.5   beneficiaries of the estate. 
  8.6      (k) The sales tax rebate is a "Minnesota tax law" for 
  8.7   purposes of Minnesota Statutes, section 270B.01, subdivision 8. 
  8.8      (l) The sales tax rebate is "an overpayment of any tax 
  8.9   collected by the commissioner" for purposes of Minnesota 
  8.10  Statutes, section 270.07, subdivision 5.  For purposes of this 
  8.11  paragraph, a joint sales tax rebate is payable to each spouse 
  8.12  equally. 
  8.13     (m) If the commissioner of revenue cannot locate an 
  8.14  individual entitled to a sales tax rebate by July 1, 2002, or if 
  8.15  an individual to whom a sales tax rebate was issued has not 
  8.16  cashed the check by July 1, 2002, the right to the sales tax 
  8.17  rebate lapses and the check must be deposited in the general 
  8.18  fund. 
  8.19     (n) Individuals entitled to a sales tax rebate pursuant to 
  8.20  paragraph (a), but who did not receive one, and individuals who 
  8.21  receive a sales tax rebate that was not correctly computed, must 
  8.22  file a claim with the commissioner before July 1, 2001, in a 
  8.23  form prescribed by the commissioner.  These claims must be 
  8.24  treated as if they are a claim for refund under Minnesota 
  8.25  Statutes, section 289A.50, subdivisions 4 and 7. 
  8.26     (o) The sales tax rebate is a refund subject to revenue 
  8.27  recapture under Minnesota Statutes, chapter 270A.  The 
  8.28  commissioner of revenue shall remit the entire refund to the 
  8.29  claimant agency, which shall, upon the request of the spouse who 
  8.30  does not owe the debt, refund one-half of the joint sales tax 
  8.31  rebate to the spouse who does not owe the debt. 
  8.32     (p) Before payment, the rebates calculated in paragraphs 
  8.33  (b), (c), (d), and (e) must be proportionately reduced to 
  8.34  account for 1998 income tax returns that are filed on or after 
  8.35  January 1, 2000, but before July 1, 2000, so that the amount of 
  8.36  sales tax rebates payable under paragraphs (b), (c), (d), and 
  9.1   (e) does not exceed $453,000,000, less the amount of the rebates 
  9.2   paid under article 2. 
  9.3   The adjustments under this paragraph are not rules subject to 
  9.4   Minnesota Statutes, chapter 14. 
  9.5      (q) The rebate is a reduction of fiscal year 2000 sales tax 
  9.6   revenues.  The amount necessary to make the sales tax rebates 
  9.7   and interest provided in this section is appropriated from the 
  9.8   general fund to the commissioner of revenue in fiscal year 2000 
  9.9   and is available until June 30, 2002. 
  9.10     (r) If a sales tax rebate check is cashed by someone other 
  9.11  than the payee or payees of the check, and the commissioner of 
  9.12  revenue determines that the check has been forged or improperly 
  9.13  endorsed, or the commissioner determines that a rebate was 
  9.14  erroneously issued or overstated, the commissioner may issue an 
  9.15  order of assessment for the amount of the check or the amount 
  9.16  the check is overstated against the person or persons cashing 
  9.17  it.  The assessment must be made within two years after the 
  9.18  check is cashed, but if cashing the check constitutes theft 
  9.19  under Minnesota Statutes, section 609.52, or forgery under 
  9.20  Minnesota Statutes, section 609.631, the assessment can be made 
  9.21  at any time.  The assessment may be appealed administratively 
  9.22  and judicially.  The commissioner may take action to collect the 
  9.23  assessment in the same manner as provided by Minnesota Statutes, 
  9.24  chapter 289A, for any other order of the commissioner assessing 
  9.25  tax. 
  9.26     (s) Notwithstanding Minnesota Statutes, sections 9.031, 
  9.27  16A.40, 16B.49, 16B.50, and any other law to the contrary, the 
  9.28  commissioner of revenue may take whatever actions the 
  9.29  commissioner deems necessary to pay the rebates required by this 
  9.30  section, and may, in consultation with the commissioner of 
  9.31  finance and the state treasurer, contract with a private vendor 
  9.32  or vendors to process, print, and mail the rebate checks or 
  9.33  warrants required under this section and receive and disburse 
  9.34  state funds to pay those checks or warrants. 
  9.35     (t) The commissioner may pay rebates required by this 
  9.36  section by electronic funds transfer to individuals who 
 10.1   requested that their 1999 individual income tax refund be paid 
 10.2   through electronic funds transfer.  The commissioner may make 
 10.3   the electronic funds transfer payments to the same financial 
 10.4   institution and into the same account as the 1999 individual 
 10.5   income tax refund. 
 10.6      (u) For purposes of this section, "resident" has the 
 10.7   meaning given in Minnesota Statutes, section 290.01, subdivision 
 10.8   7. 
 10.9      Sec. 3.  [APPROPRIATION.] 
 10.10     $4,000,000 is appropriated from the general fund to the 
 10.11  commissioner of revenue to be used to pay the costs of 
 10.12  administering section 2 and articles 2 and 3. 
 10.13     <b>EFFECTIVE DATE:</b>  Sections 1 and 2 are effective the day 
 10.14  following final enactment. 
 10.15                             ARTICLE 2
 10.16                       1999 SALES TAX REBATE
 10.17     Section 1.  Laws 1999, chapter 243, article 1, section 2, 
 10.18  is amended to read: 
 10.19     Sec. 2.  [SALES TAX REBATE.] 
 10.20     (a) An individual who: 
 10.21     (1) was eligible for a credit under Laws 1997, chapter 231, 
 10.22  article 1, section 16, as amended by Laws 1997, First Special 
 10.23  Session chapter 5, section 35, and Laws 1997, Third Special 
 10.24  Session chapter 3, section 11, and Laws 1998, chapter 304, and 
 10.25  Laws 1998, chapter 389, article 1, section 3, and who filed for 
 10.26  or received that credit on or before June 15, 1999 2000; or 
 10.27     (2) was a resident of Minnesota for any part of 1997, and 
 10.28  filed a 1997 Minnesota income tax return on or before June 15, 
 10.29  1999 2000, and had a tax liability before refundable credits on 
 10.30  that return of at least $1 but did not file the claim for credit 
 10.31  authorized under Laws 1997, chapter 231, article 1, section 16, 
 10.32  as amended, and who was not allowed to be claimed as a dependent 
 10.33  on a 1997 federal income tax return filed by another person; or 
 10.34     (3) had the property taxes payable on his or her homestead 
 10.35  abated to zero under Laws 1997, chapter 231, article 2, section 
 10.36  64, 
 11.1   shall receive a sales tax rebate. 
 11.2      (b) The sales tax rebate for taxpayers who qualify under 
 11.3   paragraph (a) as married filing joint or head of household must 
 11.4   be computed according to the following schedule: 
 11.5        Income                             Sales Tax Rebate
 11.6    less than $2,500                              $  358
 11.7    at least $2,500 but less than $5,000          $  469
 11.8    at least $5,000 but less than $10,000         $  502
 11.9    at least $10,000 but less than $15,000        $  549
 11.10   at least $15,000 but less than $20,000        $  604
 11.11   at least $20,000 but less than $25,000        $  641
 11.12   at least $25,000 but less than $30,000        $  690
 11.13   at least $30,000 but less than $35,000        $  762
 11.14   at least $35,000 but less than $40,000        $  820
 11.15   at least $40,000 but less than $45,000        $  874
 11.16   at least $45,000 but less than $50,000        $  921
 11.17   at least $50,000 but less than $60,000        $  969
 11.18   at least $60,000 but less than $70,000        $1,071
 11.19   at least $70,000 but less than $80,000        $1,162
 11.20   at least $80,000 but less than $90,000        $1,276
 11.21   at least $90,000 but less than $100,000       $1,417
 11.22   at least $100,000 but less than $120,000      $1,535
 11.23   at least $120,000 but less than $140,000      $1,682
 11.24   at least $140,000 but less than $160,000      $1,818
 11.25   at least $160,000 but less than $180,000      $1,946
 11.26   at least $180,000 but less than $200,000      $2,067
 11.27   at least $200,000 but less than $400,000      $2,644
 11.28   at least $400,000 but less than $600,000      $3,479
 11.29   at least $600,000 but less than $800,000      $4,175
 11.30   at least $800,000 but less than $1,000,000    $4,785
 11.31   $1,000,000 and over                           $5,000
 11.32     (c) The sales tax rebate for individuals who qualify under 
 11.33  paragraph (a) as single or married filing separately must be 
 11.34  computed according to the following schedule: 
 11.35        Income                                 Sales Tax Rebate
 11.36   less than $2,500                              $  204
 12.1    at least $2,500 but less than $5,000          $  249
 12.2    at least $5,000 but less than $10,000         $  299
 12.3    at least $10,000 but less than $15,000        $  408
 12.4    at least $15,000 but less than $20,000        $  464
 12.5    at least $20,000 but less than $25,000        $  496
 12.6    at least $25,000 but less than $30,000        $  515
 12.7    at least $30,000 but less than $40,000        $  570
 12.8    at least $40,000 but less than $50,000        $  649
 12.9    at least $50,000 but less than $70,000        $  776
 12.10   at least $70,000 but less than $100,000       $  958
 12.11   at least $100,000 but less than $140,000      $1,154
 12.12   at least $140,000 but less than $200,000      $1,394
 12.13   at least $200,000 but less than $400,000      $1,889
 12.14   at least $400,000 but less than $600,000      $2,485
 12.15   $600,000 and over                             $2,500
 12.16     (d) Individuals who were not residents of Minnesota for any 
 12.17  part of 1997 and who paid more than $10 in Minnesota sales tax 
 12.18  on nonbusiness consumer purchases in that year qualify for a 
 12.19  rebate under this paragraph only.  Qualifying nonresidents must 
 12.20  file a claim for rebate on a form prescribed by the commissioner 
 12.21  before the later of June 15, 1999 2000, or 30 days after the 
 12.22  date of enactment of this act.  The claim must include receipts 
 12.23  showing the Minnesota sales tax paid and the date of the sale.  
 12.24  Taxes paid on purchases allowed in the computation of federal 
 12.25  taxable income or reimbursed by an employer are not eligible for 
 12.26  the rebate.  The commissioner shall determine the qualifying 
 12.27  taxes paid and rebate the lesser of: 
 12.28     (1) 69.0 percent of that amount; or 
 12.29     (2) the maximum amount for which the claimant would have 
 12.30  been eligible as determined under paragraph (b) if the taxpayer 
 12.31  filed the 1997 federal income tax return as a married taxpayer 
 12.32  filing jointly or head of household, or as determined under 
 12.33  paragraph (c) for other taxpayers. 
 12.34     (e) "Income," for purposes of this section other than 
 12.35  paragraph (d), is taxable income as defined in section 63 of the 
 12.36  Internal Revenue Code of 1986, as amended through December 31, 
 13.1   1996, plus the sum of any additions to federal taxable income 
 13.2   for the taxpayer under Minnesota Statutes, section 290.01, 
 13.3   subdivision 19a, and reported on the original 1997 income tax 
 13.4   return including subsequent adjustments to that return made 
 13.5   within the time limits specified in paragraph (h).  For an 
 13.6   individual who was a resident of Minnesota for less than the 
 13.7   entire year, the sales tax rebate equals the sales tax rebate 
 13.8   calculated under paragraph (b) or (c) income as determined under 
 13.9   this paragraph must be multiplied by the percentage determined 
 13.10  pursuant to Minnesota Statutes, section 290.06, subdivision 2c, 
 13.11  paragraph (e), as calculated on the original 1997 income tax 
 13.12  return including subsequent adjustments to that return made 
 13.13  within the time limits specified in paragraph (h).  For purposes 
 13.14  of paragraph (d), "income" is taxable income as defined in 
 13.15  section 63 of the Internal Revenue Code of 1986, as amended 
 13.16  through December 31, 1996, and reported on the taxpayer's 
 13.17  original federal tax return for the first taxable year beginning 
 13.18  after December 31, 1996. 
 13.19     (f) For a fiscal year taxpayer, the June 15, 1999, dates in 
 13.20  paragraphs (a) through (d) are extended one month for each month 
 13.21  in calendar year 1997 that occurred prior to the start of the 
 13.22  individual's 1997 fiscal tax year. 
 13.23     (g) Before payment, the commissioner of revenue shall 
 13.24  adjust the rebate as follows: 
 13.25     (1) the rebates calculated in paragraphs (b), (c), and (d) 
 13.26  must be proportionately reduced to account for 1997 income tax 
 13.27  returns that are filed on or after January 1, 1999, but before 
 13.28  July 1, 1999, so that the amount of sales tax rebates payable 
 13.29  under paragraphs (b), (c), and (d) does not exceed 
 13.30  $1,250,000,000; and 
 13.31     (2) the commissioner of finance shall certify by July 15, 
 13.32  1999, preliminary fiscal year 1999 general fund net nondedicated 
 13.33  revenues.  The certification shall exclude the impact of any 
 13.34  legislation enacted during the 1999 regular session.  If 
 13.35  certified net nondedicated revenues exceed the amount forecast 
 13.36  in February 1999, up to $50,000,000 of the increase shall be 
 14.1   added to the total amount rebated.  The commissioner of revenue 
 14.2   shall adjust all rebates proportionally to reflect any 
 14.3   increases.  The total amount of the rebate shall not exceed 
 14.4   $1,300,000,000. 
 14.5   The adjustments under this paragraph are not rules subject to 
 14.6   Minnesota Statutes, chapter 14. 
 14.7      (g) (h) The commissioner of revenue may begin making sales 
 14.8   tax rebates by August 1, 1999.  Sales tax rebates not paid by 
 14.9   October 1, 1999, bear interest at the rate specified in 
 14.10  Minnesota Statutes, section 270.75.  Sales tax rebates paid to: 
 14.11     (1) taxpayers who file their original 1997 Minnesota income 
 14.12  tax return after June 15, 1999; 
 14.13     (2) individuals qualifying under paragraph (s); and 
 14.14     (3) qualifying nonresidents who file a claim for rebate 
 14.15  after June 15, 1999, 
 14.16  bear interest at the rate specified in Minnesota Statutes, 
 14.17  section 270.75, beginning October 1, 2000. 
 14.18     (h) (i) A sales tax rebate shall not be adjusted based on 
 14.19  changes to a 1997 income tax return that are made by order of 
 14.20  assessment after June 15, 1999, or made by the taxpayer that are 
 14.21  filed with the commissioner of revenue after June 15, 1999. 
 14.22     (i) (j) Individuals who filed a joint income tax return for 
 14.23  1997 shall receive a joint sales tax rebate.  After the sales 
 14.24  tax rebate has been issued, but before the check has been 
 14.25  cashed, either joint claimant may request a separate check for 
 14.26  one-half of the joint sales tax rebate.  Notwithstanding 
 14.27  anything in this section to the contrary, if prior to payment, 
 14.28  the commissioner has been notified that persons who filed a 
 14.29  joint 1997 income tax return are living at separate addresses, 
 14.30  as indicated on their 1998 income tax return or otherwise, the 
 14.31  commissioner may issue separate checks to each person.  The 
 14.32  amount payable to each person is one-half of the total joint 
 14.33  rebate.  If a rebate is received by the estate of a deceased 
 14.34  individual after the probate estate has been closed, and if the 
 14.35  original rebate check is returned to the commissioner with a 
 14.36  copy of the decree of descent or final account of the estate, 
 15.1   social security numbers, and addresses of the beneficiaries, the 
 15.2   commissioner may issue separate checks in proportion to their 
 15.3   share in the residuary estate in the names of the residuary 
 15.4   beneficiaries of the estate. 
 15.5      (j) (k) The sales tax rebate is a "Minnesota tax law" for 
 15.6   purposes of Minnesota Statutes, section 270B.01, subdivision 8. 
 15.7      (k) (l) The sales tax rebate is "an overpayment of any tax 
 15.8   collected by the commissioner" for purposes of Minnesota 
 15.9   Statutes, section 270.07, subdivision 5.  For purposes of this 
 15.10  paragraph, a joint sales tax rebate is payable to each spouse 
 15.11  equally. 
 15.12     (l) (m) If the commissioner of revenue cannot locate an 
 15.13  individual entitled to a sales tax rebate by July 1, 2001, or if 
 15.14  an individual to whom a sales tax rebate was issued has not 
 15.15  cashed the check by July 1, 2001, the right to the sales tax 
 15.16  rebate lapses and the check must be deposited in the general 
 15.17  fund. 
 15.18     (m) (n) Individuals entitled to a sales tax rebate pursuant 
 15.19  to paragraph (a), but who did not receive one, and individuals 
 15.20  who receive a sales tax rebate that was not correctly computed, 
 15.21  must file a claim with the commissioner before July 1, 2000, in 
 15.22  a form prescribed by the commissioner.  Taxpayers who file their 
 15.23  original 1997 Minnesota income tax return after June 15, 1999, 
 15.24  and qualifying nonresidents who file a claim for rebate after 
 15.25  June 15, 1999, and who do not receive it or who receive a sales 
 15.26  tax rebate that was not correctly computed, must file a claim 
 15.27  with the commissioner before July 1, 2001, in a form prescribed 
 15.28  by the commissioner.  These claims must be treated as if they 
 15.29  are a claim for refund under Minnesota Statutes, section 
 15.30  289A.50, subdivisions 4 and 7. 
 15.31     (n) (o) The sales tax rebate is a refund subject to revenue 
 15.32  recapture under Minnesota Statutes, chapter 270A.  The 
 15.33  commissioner of revenue shall remit the entire refund to the 
 15.34  claimant agency, which shall, upon the request of the spouse who 
 15.35  does not owe the debt, refund one-half of the joint sales tax 
 15.36  rebate to the spouse who does not owe the debt. 
 16.1      (o) (p) The rebate is a reduction of fiscal year 1999 sales 
 16.2   tax revenues.  The amount necessary to make the sales tax 
 16.3   rebates and interest provided in this section is appropriated 
 16.4   from the general fund to the commissioner of revenue in fiscal 
 16.5   year 1999 and is available until June 30, 2001. 
 16.6      (p) (q) If a sales tax rebate check is cashed by someone 
 16.7   other than the payee or payees of the check, and the 
 16.8   commissioner of revenue determines that the check has been 
 16.9   forged or improperly endorsed or the commissioner determines 
 16.10  that a rebate was overstated or erroneously issued, the 
 16.11  commissioner may issue an order of assessment for the amount of 
 16.12  the check or the amount the check is overstated against the 
 16.13  person or persons cashing it.  The assessment must be made 
 16.14  within two years after the check is cashed, but if cashing the 
 16.15  check constitutes theft under Minnesota Statutes, section 
 16.16  609.52, or forgery under Minnesota Statutes, section 609.631, 
 16.17  the assessment can be made at any time.  The assessment may be 
 16.18  appealed administratively and judicially.  The commissioner may 
 16.19  take action to collect the assessment in the same manner as 
 16.20  provided by Minnesota Statutes, chapter 289A, for any other 
 16.21  order of the commissioner assessing tax. 
 16.22     (q) (r) Notwithstanding Minnesota Statutes, sections 9.031, 
 16.23  16A.40, 16B.49, 16B.50, and any other law to the contrary, the 
 16.24  commissioner of revenue may take whatever actions the 
 16.25  commissioner deems necessary to pay the rebates required by this 
 16.26  section, and may, in consultation with the commissioner of 
 16.27  finance and the state treasurer, contract with a private vendor 
 16.28  or vendors to process, print, and mail the rebate checks or 
 16.29  warrants required under this section and receive and disburse 
 16.30  state funds to pay those checks or warrants. 
 16.31     (r) (s) The commissioner may pay rebates required by this 
 16.32  section by electronic funds transfer to individuals who 
 16.33  requested that their 1998 individual income tax refund be paid 
 16.34  through electronic funds transfer.  The commissioner may make 
 16.35  the electronic funds transfer payments to the same financial 
 16.36  institution and into the same account as the 1998 individual 
 17.1   income tax refund. 
 17.2      (t) Individuals who: 
 17.3      (1) were residents of Minnesota in 1997; 
 17.4      (2) attained the age of 18 on or before December 31, 1997; 
 17.5      (3) had at least $500 of qualifying income in 1997; and 
 17.6      (4) do not otherwise qualify for a rebate either 
 17.7   individually or as the spouse of an individual who receives a 
 17.8   rebate on the basis of a married joint filing status, 
 17.9   qualify for a rebate under this paragraph only.  If required to 
 17.10  do so by the commissioner, claimants under this paragraph must 
 17.11  file a claim for a rebate on a form prescribed by the 
 17.12  commissioner before the later of June 15, 2000, or 30 days after 
 17.13  the date of enactment of this act.  The commissioner shall 
 17.14  verify the information provided and rebate the minimum amount 
 17.15  for which the claimant would have been eligible as determined 
 17.16  under paragraph (b), as adjusted by paragraph (f), if the 
 17.17  taxpayer would have met the requirements to file a 1997 federal 
 17.18  income tax return as a married taxpayer filing jointly or head 
 17.19  of household, or as determined under paragraph (c), as adjusted 
 17.20  by paragraph (f), for other taxpayers. Qualified claims for 
 17.21  rebate under this paragraph not paid by October 1, 2000, bear 
 17.22  interest at the rate specified in Minnesota Statutes, section 
 17.23  270.75.  As used in this paragraph only, "qualifying income" 
 17.24  means the sum of: 
 17.25     (1) self-employment income subject to the tax under section 
 17.26  1401(b) of the Internal Revenue Code of 1986, as amended through 
 17.27  December 31, 1997; plus 
 17.28     (2) wages subject to tax under section 3101(b) of the 
 17.29  Internal Revenue Code of 1986, as amended through December 31, 
 17.30  1997; plus 
 17.31     (3) amounts described in Minnesota Statutes, section 
 17.32  290A.03, subdivision 3, paragraph (b), clauses (iv), (v), (vi), 
 17.33  (vii), (viii), (ix), (x), and (xii). 
 17.34     As used in this paragraph, "qualifying income" does not 
 17.35  include any compensation paid to inmates at a state, local, 
 17.36  federal, or privately operated correctional facility as pay for 
 18.1   services performed by the inmate at the facility. 
 18.2      If the Social Security Administration or Railroad 
 18.3   Retirement Board is paying benefits to a recipient by electronic 
 18.4   funds transfers in 2000, the rebate under this paragraph must be 
 18.5   paid by the commissioner through electronic funds transfer to 
 18.6   the same financial institution and into the same account into 
 18.7   which the Social Security Administration or Railroad Retirement 
 18.8   Board transfers social security benefits in calendar year 1999. 
 18.9      Sec. 2.  [APPLICATION OF LAW.] 
 18.10     The limitation on the total amount of rebates in Laws 1999, 
 18.11  chapter 243, article 1, section 2, paragraph (f), does not apply 
 18.12  to rebates issued under section 1.  To the extent applicable, 
 18.13  all other provisions of Laws 1999, chapter 243, article 1, 
 18.14  section 2, apply to the rebates paid under section 1.  
 18.15     Sec. 3.  [APPROPRIATION.] 
 18.16     The amount necessary to pay the rebates under section 1 is 
 18.17  appropriated from the general fund to the commissioner of 
 18.18  revenue for fiscal years 2000 and 2001. 
 18.19     <b>EFFECTIVE DATE:</b>  Sections 1 to 3 are effective the day 
 18.20  following final enactment. 
 18.21                             ARTICLE 3
 18.22                      AGRICULTURAL ASSISTANCE 
 18.23     Section 1.  Laws 1999, chapter 112, section 1, subdivision 
 18.24  2, is amended to read: 
 18.25     Subd. 2.  [PAYMENT TO FARMERS.] Every farm operator may 
 18.26  apply on a separate form for each farm that they operate to the 
 18.27  commissioner for payments as provided under this subdivision.  
 18.28  The payment shall be made to each farmer at risk for a farm 
 18.29  operation and shall equal $4, multiplied by the number of acres 
 18.30  of the farm operation, multiplied by the percentage of the risk 
 18.31  borne by that farmer for that farm operation.  If total payments 
 18.32  for a farm to all farmers at risk for that farm would exceed 
 18.33  $5,600, the payment to each farmer at risk shall be prorated so 
 18.34  that the total payments to all farmers at risk for that farm do 
 18.35  not exceed $5,600. 
 18.36     Applications shall be based on information reported to the 
 19.1   farm service agency for crop year 1998 by December 31, 1998.  
 19.2   The applications shall include the social security number or 
 19.3   federal employer identification number or a producer number 
 19.4   assigned by the farm service agency for each farmer and the farm 
 19.5   service agency farm number from form 156EZ.  The commissioner 
 19.6   shall prepare application forms for the payment and ensure that 
 19.7   they are available throughout the state.  The commissioner shall 
 19.8   make payments by June 30, 1999, to each eligible farmer who 
 19.9   applies by May 31, 1999, or within 30 days of the application if 
 19.10  the application is received after May 31, 1999.  In no case will 
 19.11  applications be accepted after September June 30, 1999 2000. 
 19.12     Sec. 2.  Laws 1999, chapter 112, section 1, subdivision 7, 
 19.13  is amended to read: 
 19.14     Subd. 7.  [CERTIFICATION AND PAYMENT.] Any person eligible 
 19.15  for the refund under subdivisions 4 to 8 shall send the 
 19.16  commissioner a copy of the certification that the taxpayer 
 19.17  received from the county auditor.  In no case will applications 
 19.18  be accepted after November June 30, 1999 2000.  The commissioner 
 19.19  shall issue a refund by July 15, 1999, to each qualifying 
 19.20  taxpayer who applied by June 15, 1999, or within 30 days of 
 19.21  receipt of the application if received after June 15, 1999. 
 19.22     Sec. 3.  Laws 1999, chapter 112, section 2, is amended to 
 19.23  read: 
 19.24     Sec. 2.  [APPROPRIATION.] 
 19.25     (a) The amount necessary to fund the payments required 
 19.26  under section 1, subdivisions 2 and 7, is appropriated in fiscal 
 19.27  year years 1999 and 2000 from the general fund to the 
 19.28  commissioner of revenue.  This appropriation is available 
 19.29  until June 30 December 31, 2000. 
 19.30     (b) $68,000 is appropriated in fiscal year 1999 to the 
 19.31  commissioner of revenue for distribution to counties for the 
 19.32  costs of administering section 1, subdivisions 4 to 8.  This 
 19.33  appropriation is available until June 30, 2000.  The 
 19.34  distribution to counties shall be based on the number of refunds 
 19.35  received under the provisions of section 1, subdivisions 4 to 8. 
 19.36     Sec. 4.  [AGRICULTURAL ASSISTANCE IN 2000.] 
 20.1      Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
 20.2   subdivision apply to this section. 
 20.3      (b) "Acre" means an acre of effective agricultural use land 
 20.4   within the state of Minnesota as reported to the Farm Service 
 20.5   Agency on form 156EZ. 
 20.6      (c) "Commissioner" means the commissioner of revenue. 
 20.7      (d) "Disaster county" means a county in Minnesota that: 
 20.8      (1) received a presidential major disaster declaration in 
 20.9   1999; or 
 20.10     (2) was named as a contiguous county under a presidential 
 20.11  major disaster declaration in 1999. 
 20.12     (e) "Effective agricultural use land" means land suitable 
 20.13  for growing an agricultural crop and excludes land enrolled in 
 20.14  the conservation reserve program established by Minnesota 
 20.15  Statutes, section 103F.515, or the water bank program 
 20.16  established by Minnesota Statutes, section 103F.601. 
 20.17     (f) "Farm" or "farm operation" means an agricultural 
 20.18  production operation located wholly or in part within a disaster 
 20.19  county that: 
 20.20     (1) has a unique farm number as reported on form 156EZ to 
 20.21  the Farm Service Agency and includes at least 40 acres of 
 20.22  effective agricultural use land; or 
 20.23     (2) has produced at least $10,000 in sales of unprocessed 
 20.24  livestock or unprocessed dairy products as reported on schedule 
 20.25  F or form 1065, 1120, or 1120S of the farmer's federal income 
 20.26  tax return for the taxable year beginning in either calendar 
 20.27  year 1998 or 1999. 
 20.28     (g) "Farm operator" means a person who is identified as the 
 20.29  operator of a farm on form 156EZ filed with the Farm Service 
 20.30  Agency, provided that if both spouses in a married couple are so 
 20.31  identified, only one will be deemed to be a farm operator for 
 20.32  purposes of this article.  
 20.33     (h) "Farm Service Agency" means the United States 
 20.34  Department of Agriculture, Farm Service Agency. 
 20.35     (i) "Farmer" or "farmer at risk" means a person who: 
 20.36     (1) produces an agricultural crop or livestock and is 
 21.1   reported to the Farm Service Agency as bearing a percentage of 
 21.2   the risk for the farm operation; or 
 21.3      (2) owns or resides on property homesteaded under Minnesota 
 21.4   Statutes, section 273.124, subdivision 1, paragraph (c), and 
 21.5   operates a livestock production facility. 
 21.6      (j) "Livestock" means cattle, hogs, poultry, and sheep. 
 21.7      (k) "Person" includes individuals, fiduciaries, estates, 
 21.8   trusts, partnerships, joint ventures, and corporations. 
 21.9      Subd. 2.  [PAYMENT TO FARMERS.] (a) A farm operator may 
 21.10  apply on a separate form for each farm that the person operates 
 21.11  to the commissioner for payments as provided under this 
 21.12  subdivision.  The payment must be made to each farmer at risk 
 21.13  for a farm operation and must equal $4, multiplied by the number 
 21.14  of acres of the farm operation, multiplied by the percentage of 
 21.15  the risk borne by that farmer for that farm operation. 
 21.16     (b) Applications must be based on information reported to 
 21.17  the Farm Service Agency for crop year 1999, by December 31, 
 21.18  1999, and must include the social security number or federal 
 21.19  employer identification number, or a producer number assigned by 
 21.20  the Farm Service Agency for each farmer and the Farm Service 
 21.21  Agency farm number from form 156EZ.  The commissioner shall 
 21.22  prepare application forms for the payment and ensure that they 
 21.23  are available throughout the state.  The commissioner shall make 
 21.24  payments by June 30, 2000, to each eligible farmer who applies 
 21.25  by May 31, 2000, or within 30 days of the application if the 
 21.26  application is received after May 31, 2000.  In no case will 
 21.27  applications be accepted after September 30, 2000. 
 21.28     Subd. 3.  [ALTERNATE QUALIFICATION.] (a) If an agricultural 
 21.29  production operation does not meet the definition of a farm 
 21.30  under subdivision 1 solely because: 
 21.31     (1) the farm operator had not filed a form 156EZ with the 
 21.32  Farm Service Agency; 
 21.33     (2) there was an error in the Farm Service Agency's 
 21.34  records; or 
 21.35     (3) an operator operates more than one farm and the acres 
 21.36  of effective agricultural use land of a farm is less than 40 
 22.1   acres, but the combined acres of effective agricultural use land 
 22.2   of all land operated by that operator is at least 40 acres, 
 22.3   the commissioner may allow the farm operator to apply for 
 22.4   payment under subdivision 2 after providing the information the 
 22.5   commissioner requires to determine the number of acres that 
 22.6   would be comparable to the effective agricultural use land 
 22.7   listed on form 156EZ. 
 22.8      (b) If the number of acres of effective agricultural use 
 22.9   land for crop year 1999 for a farm is greater than indicated in 
 22.10  the Farm Service Agency's records, the commissioner may allow a 
 22.11  farm operator to apply for payment on the greater acreage after 
 22.12  providing the information the commissioner requires. 
 22.13     (c) If a person who produced an agricultural crop or 
 22.14  livestock in 1999 and bore a portion of the risk for the farm 
 22.15  operation does not meet the definition of a farmer under 
 22.16  subdivision 1 solely because that information was not reported 
 22.17  to the Farm Service Agency or because there was an error in the 
 22.18  Farm Service Agency's records, the commissioner may allow the 
 22.19  farmer to be included on an application for payment under 
 22.20  subdivision 2 after the farmer provides the information the 
 22.21  commissioner requires to determine the farmer was at risk for 
 22.22  that farm. 
 22.23     Subd. 4.  [LIMIT.] No person and no married couple may 
 22.24  receive a payment under subdivision 2 that exceeds $5,600. 
 22.25     Subd. 5.  [APPLICATION OF OTHER LAWS.] The payments under 
 22.26  subdivision 2 are a "Minnesota tax law" for purposes of 
 22.27  Minnesota Statutes, section 270B.01, subdivision 8. 
 22.28     Subd. 6.  [REMEDIES.] A farmer denied a payment under 
 22.29  subdivision 2 may appeal that denial under Minnesota Statutes, 
 22.30  section 289A.50, subdivision 7. 
 22.31     Subd. 7.  [INTEREST.] Payments under subdivision 2 bear 
 22.32  interest at the rate specified in Minnesota Statutes, section 
 22.33  289A.55, subdivision 1, from the later of the payment dates 
 22.34  specified under subdivision 2 or 75 days after a complete 
 22.35  payment application was filed with the commissioner. 
 22.36     Subd. 8.  [PENALTIES.] If the commissioner determines that 
 23.1   claims for payments under subdivision 2 are or were excessive 
 23.2   and were filed with fraudulent intent, the claim must be 
 23.3   disallowed in full.  If the claim has been paid, the amount 
 23.4   disallowed must be recovered by assessment and collection under 
 23.5   Minnesota Statutes, chapter 289A.  The assessment must be made 
 23.6   within two years after a check is cashed, but if cashing a check 
 23.7   constitutes theft under Minnesota Statutes, section 609.52, or 
 23.8   forgery under Minnesota Statutes, section 609.631, the 
 23.9   assessment may be made at any time.  The assessment may be 
 23.10  appealed administratively and judicially. 
 23.11     Sec. 5.  [APPROPRIATION.] 
 23.12     The amount necessary to fund the payments required under 
 23.13  section 4, subdivision 2, is appropriated in fiscal year 2000 
 23.14  from the general fund to the commissioner of revenue.  This 
 23.15  appropriation is available until June 30, 2001. 
 23.16     <b>EFFECTIVE DATE:</b>  Sections 1 to 5 are effective the day 
 23.17  following final enactment. 
 23.18                             ARTICLE 4
 23.19                     INCOME AND FRANCHISE TAXES
 23.20     Section 1.  Minnesota Statutes 1998, section 289A.08, is 
 23.21  amended by adding a subdivision to read: 
 23.22     Subd. 16.  [TAX REFUND OR RETURN PREPARERS.] (a) A "tax 
 23.23  refund or return preparer," as defined in section 289A.60, 
 23.24  subdivision 13, paragraph (g), who prepared more than 500 
 23.25  Minnesota individual income tax returns for the prior calendar 
 23.26  year must file all Minnesota individual income tax returns 
 23.27  prepared for the current calendar year by electronic means. 
 23.28     (b) For tax returns prepared for the tax year beginning in 
 23.29  2001, the "500" in paragraph (a) is reduced to 250. 
 23.30     (c) For tax returns prepared for tax years beginning after 
 23.31  December 31, 2001, the "500" in paragraph (a) is reduced to 100. 
 23.32     (d) Paragraph (a) does not apply to a return if the 
 23.33  taxpayer has indicated on the return that the taxpayer did not 
 23.34  want the return filed by electronic means. 
 23.35     <b>EFFECTIVE DATE:</b>  This section is effective for tax returns 
 23.36  prepared for taxable years beginning after December 31, 1999. 
 24.1      Sec. 2.  Minnesota Statutes 1998, section 289A.60, 
 24.2   subdivision 1, is amended to read: 
 24.3      Subdivision 1.  [PENALTY FOR FAILURE TO PAY TAX.] If a tax 
 24.4   other than a withholding or sales or use tax is not paid within 
 24.5   the time specified for payment, a penalty must be added to the 
 24.6   amount required to be shown as tax.  The penalty is three 
 24.7   percent of the tax not paid on or before the date specified for 
 24.8   payment of the tax if the failure is for not more than 30 days, 
 24.9   with an additional penalty of three percent of the amount of tax 
 24.10  remaining unpaid during each additional 30 days or fraction of 
 24.11  30 days during which the failure continues, not exceeding 24 
 24.12  percent in the aggregate. 
 24.13     If an individual files a state individual income tax return 
 24.14  and pays all of the state individual income tax with the filing 
 24.15  of a return within six months of the date the return is due and 
 24.16  the amount paid by the due date of the return is at least 90 
 24.17  percent of the amount of tax due, as shown on the return, the 
 24.18  individual is presumed to have reasonable cause for the late 
 24.19  payment. 
 24.20     If a withholding or sales or use tax is not paid within the 
 24.21  time specified for payment, a penalty must be added to the 
 24.22  amount required to be shown as tax.  The penalty is five percent 
 24.23  of the tax not paid on or before the date specified for payment 
 24.24  of the tax if the failure is for not more than 30 days, with an 
 24.25  additional penalty of five percent of the amount of tax 
 24.26  remaining unpaid during each additional 30 days or fraction of 
 24.27  30 days during which the failure continues, not exceeding 15 
 24.28  percent in the aggregate. 
 24.29     <b>EFFECTIVE DATE:</b>  This section is effective for taxable 
 24.30  years beginning after December 31, 1999. 
 24.31     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 24.32  290.01, subdivision 19b, is amended to read: 
 24.33     Subd. 19b.  [SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.] For 
 24.34  individuals, estates, and trusts, there shall be subtracted from 
 24.35  federal taxable income: 
 24.36     (1) interest income on obligations of any authority, 
 25.1   commission, or instrumentality of the United States to the 
 25.2   extent includable in taxable income for federal income tax 
 25.3   purposes but exempt from state income tax under the laws of the 
 25.4   United States; 
 25.5      (2) if included in federal taxable income, the amount of 
 25.6   any overpayment of income tax to Minnesota or to any other 
 25.7   state, for any previous taxable year, whether the amount is 
 25.8   received as a refund or as a credit to another taxable year's 
 25.9   income tax liability; 
 25.10     (3) the amount paid to others, less the credit allowed 
 25.11  under section 290.0674, not to exceed $1,625 for each qualifying 
 25.12  child in grades kindergarten to 6 and $2,500 for each qualifying 
 25.13  child in grades 7 to 12, for tuition, textbooks, and 
 25.14  transportation of each qualifying child in attending an 
 25.15  elementary or secondary school situated in Minnesota, North 
 25.16  Dakota, South Dakota, Iowa, or Wisconsin, wherein a resident of 
 25.17  this state may legally fulfill the state's compulsory attendance 
 25.18  laws, which is not operated for profit, and which adheres to the 
 25.19  provisions of the Civil Rights Act of 1964 and chapter 363.  For 
 25.20  the purposes of this clause, "tuition" includes fees or tuition 
 25.21  as defined in section 290.0674, subdivision 1, clause (1).  As 
 25.22  used in this clause, "textbooks" includes books and other 
 25.23  instructional materials and equipment used in elementary and 
 25.24  secondary schools in teaching only those subjects legally and 
 25.25  commonly taught in public elementary and secondary schools in 
 25.26  this state.  Equipment expenses qualifying for deduction 
 25.27  includes expenses as defined and limited in section 290.0674, 
 25.28  subdivision 1, clause (3).  "Textbooks" does not include 
 25.29  instructional books and materials used in the teaching of 
 25.30  religious tenets, doctrines, or worship, the purpose of which is 
 25.31  to instill such tenets, doctrines, or worship, nor does it 
 25.32  include books or materials for, or transportation to, 
 25.33  extracurricular activities including sporting events, musical or 
 25.34  dramatic events, speech activities, driver's education, or 
 25.35  similar programs.  For purposes of the subtraction provided by 
 25.36  this clause, "qualifying child" has the meaning given in section 
 26.1   32(c)(3) of the Internal Revenue Code; 
 26.2      (4) contributions made in taxable years beginning after 
 26.3   December 31, 1981, and before January 1, 1985, to a qualified 
 26.4   governmental pension plan, an individual retirement account, 
 26.5   simplified employee pension, or qualified plan covering a 
 26.6   self-employed person that were included in Minnesota gross 
 26.7   income in the taxable year for which the contributions were made 
 26.8   but were deducted or were not included in the computation of 
 26.9   federal adjusted gross income, less any amount allowed to be 
 26.10  subtracted as a distribution under this subdivision or a 
 26.11  predecessor provision in taxable years that began before January 
 26.12  1, 2000.  This subtraction applies only for taxable years 
 26.13  beginning after December 31, 1999, and before January 1, 2001; 
 26.14     (5) income as provided under section 290.0802; 
 26.15     (6) the amount of unrecovered accelerated cost recovery 
 26.16  system deductions allowed under subdivision 19g; 
 26.17     (7) to the extent included in federal adjusted gross 
 26.18  income, income realized on disposition of property exempt from 
 26.19  tax under section 290.491; 
 26.20     (8) to the extent not deducted in determining federal 
 26.21  taxable income, the amount paid for health insurance of 
 26.22  self-employed individuals as determined under section 162(l) of 
 26.23  the Internal Revenue Code, except that the percent limit does 
 26.24  not apply.  If the taxpayer deducted insurance payments under 
 26.25  section 213 of the Internal Revenue Code of 1986, the 
 26.26  subtraction under this clause must be reduced by the lesser of: 
 26.27     (i) the total itemized deductions allowed under section 
 26.28  63(d) of the Internal Revenue Code, less state, local, and 
 26.29  foreign income taxes deductible under section 164 of the 
 26.30  Internal Revenue Code and the standard deduction under section 
 26.31  63(c) of the Internal Revenue Code; or 
 26.32     (ii) the lesser of (A) the amount of insurance qualifying 
 26.33  as "medical care" under section 213(d) of the Internal Revenue 
 26.34  Code to the extent not deducted under section 162(1) of the 
 26.35  Internal Revenue Code or excluded from income or (B) the total 
 26.36  amount deductible for medical care under section 213(a); 
 27.1      (9) the exemption amount allowed under Laws 1995, chapter 
 27.2   255, article 3, section 2, subdivision 3; 
 27.3      (10) to the extent included in federal taxable income, 
 27.4   postservice benefits for youth community service under section 
 27.5   124D.42 for volunteer service under United States Code, title 
 27.6   42, section 5011(d), as amended; 
 27.7      (11) to the extent not deducted in determining federal 
 27.8   taxable income by an individual who does not itemize deductions 
 27.9   for federal income tax purposes for the taxable year, an amount 
 27.10  equal to 50 percent of the excess of charitable contributions 
 27.11  allowable as a deduction for the taxable year under section 
 27.12  170(a) of the Internal Revenue Code over $500; and 
 27.13     (12) to the extent included in federal taxable income, 
 27.14  holocaust victims' settlement payments for any injury incurred 
 27.15  as a result of the holocaust, if received by an individual who 
 27.16  was persecuted for racial or religious reasons by Nazi Germany 
 27.17  or any other Axis regime or an heir of such a person.; 
 27.18     (13) an amount equal to $360 for each of the taxpayer's 
 27.19  personal exemptions, as defined in section 151 of the Internal 
 27.20  Revenue Code, and allowed on the taxpayer's federal tax return 
 27.21  for the tax year.  For taxable years beginning after December 
 27.22  31, 2000, the commissioner shall adjust the subtraction amount 
 27.23  by the percentage determined under section 290.06, subdivision 
 27.24  2d, for the taxable year; and 
 27.25     (14) an amount equal to $360 for each of the taxpayer's 
 27.26  dependent exemptions, as defined in section 152 of the Internal 
 27.27  Revenue Code, and allowed on the taxpayer's federal tax return 
 27.28  for the tax year.  For taxable years beginning after December 
 27.29  31, 2000, the commissioner shall adjust the subtraction amount 
 27.30  by the percentage determined under section 290.06, subdivision 
 27.31  2d, for the taxable year.  The subtraction in this clause is not 
 27.32  allowed to taxpayers who claim the credit in section 290.0676. 
 27.33     <b>EFFECTIVE DATE:</b>  This section is effective for taxable 
 27.34  years beginning after December 31, 1999. 
 27.35     Sec. 4.  Minnesota Statutes 1998, section 290.01, is 
 27.36  amended by adding a subdivision to read: 
 28.1      Subd. 33.  [DOMICILE.] For corporations, "domicile" means 
 28.2   the principal place from which the trade or business of the 
 28.3   taxpayer is directed or managed. 
 28.4      <b>EFFECTIVE DATE:</b>  This section is effective for taxable 
 28.5   years beginning after December 31, 1999. 
 28.6      Sec. 5.  [290.0676] [CHILD TAX CREDIT.] 
 28.7      Subdivision 1.  [CREDIT ALLOWED.] An individual is allowed 
 28.8   a credit against the tax imposed by this chapter equal to $20 
 28.9   for each dependent exemption as defined in section 152 of the 
 28.10  Internal Revenue Code, and allowed on the taxpayer's federal tax 
 28.11  return for the tax year.  The credit is not allowed to an 
 28.12  individual who claims the subtraction in section 290.01, 
 28.13  subdivision 19b, clause (14). 
 28.14     For a nonresident or part-year resident, the credit 
 28.15  determined under this section must be allocated based on the 
 28.16  percentage calculated under section 290.06, subdivision 2c, 
 28.17  paragraph (e). 
 28.18     For taxable years beginning after December 31, 2000, the 
 28.19  commissioner shall adjust the credit amount by the percentage 
 28.20  determined under section 290.06, subdivision 2d, for the taxable 
 28.21  year. 
 28.22     Subd. 2.  [CREDIT REFUNDABLE.] If the amount of credit 
 28.23  which the claimant is eligible to receive under this section 
 28.24  exceeds the claimant's tax liability under this chapter, the 
 28.25  commissioner shall refund the excess to the claimant. 
 28.26     <b>EFFECTIVE DATE:</b>  This section is effective for taxable 
 28.27  years beginning after December 31, 1999. 
 28.28     Sec. 6.  Minnesota Statutes 1999 Supplement, section 
 28.29  290.091, subdivision 2, is amended to read: 
 28.30     Subd. 2.  [DEFINITIONS.] For purposes of the tax imposed by 
 28.31  this section, the following terms have the meanings given: 
 28.32     (a) "Alternative minimum taxable income" means the sum of 
 28.33  the following for the taxable year: 
 28.34     (1) the taxpayer's federal alternative minimum taxable 
 28.35  income as defined in section 55(b)(2) of the Internal Revenue 
 28.36  Code; 
 29.1      (2) the taxpayer's itemized deductions allowed in computing 
 29.2   federal alternative minimum taxable income, but excluding: 
 29.3      (i) the Minnesota charitable contribution deduction; 
 29.4      (ii) the medical expense deduction; 
 29.5      (iii) the casualty, theft, and disaster loss deduction; 
 29.6      (iv) the impairment-related work expenses of a disabled 
 29.7   person; and 
 29.8      (v) holocaust victims' settlement payments to the extent 
 29.9   allowed under section 290.01, subdivision 19b; 
 29.10     (3) for depletion allowances computed under section 613A(c) 
 29.11  of the Internal Revenue Code, with respect to each property (as 
 29.12  defined in section 614 of the Internal Revenue Code), to the 
 29.13  extent not included in federal alternative minimum taxable 
 29.14  income, the excess of the deduction for depletion allowable 
 29.15  under section 611 of the Internal Revenue Code for the taxable 
 29.16  year over the adjusted basis of the property at the end of the 
 29.17  taxable year (determined without regard to the depletion 
 29.18  deduction for the taxable year); 
 29.19     (4) to the extent not included in federal alternative 
 29.20  minimum taxable income, the amount of the tax preference for 
 29.21  intangible drilling cost under section 57(a)(2) of the Internal 
 29.22  Revenue Code determined without regard to subparagraph (E); and 
 29.23     (5) to the extent not included in federal alternative 
 29.24  minimum taxable income, the amount of interest income as 
 29.25  provided by section 290.01, subdivision 19a, clause (1); 
 29.26     less the sum of the amounts determined under the following: 
 29.27     (1) interest income as defined in section 290.01, 
 29.28  subdivision 19b, clause (1); 
 29.29     (2) an overpayment of state income tax as provided by 
 29.30  section 290.01, subdivision 19b, clause (2), to the extent 
 29.31  included in federal alternative minimum taxable income; and 
 29.32     (3) the amount of investment interest paid or accrued 
 29.33  within the taxable year on indebtedness to the extent that the 
 29.34  amount does not exceed net investment income, as defined in 
 29.35  section 163(d)(4) of the Internal Revenue Code.  Interest does 
 29.36  not include amounts deducted in computing federal adjusted gross 
 30.1   income; and 
 30.2      (4) amounts subtracted from federal taxable income as 
 30.3   provided by section 290.01, subdivision 19b, clauses (4), (6), 
 30.4   (13), and (14). 
 30.5      In the case of an estate or trust, alternative minimum 
 30.6   taxable income must be computed as provided in section 59(c) of 
 30.7   the Internal Revenue Code. 
 30.8      (b) "Investment interest" means investment interest as 
 30.9   defined in section 163(d)(3) of the Internal Revenue Code. 
 30.10     (c) "Tentative minimum tax" equals 6.5 percent of 
 30.11  alternative minimum taxable income after subtracting the 
 30.12  exemption amount determined under subdivision 3. 
 30.13     (d) "Regular tax" means the tax that would be imposed under 
 30.14  this chapter (without regard to this section and section 
 30.15  290.032), reduced by the sum of the nonrefundable credits 
 30.16  allowed under this chapter plus the credit allowed under section 
 30.17  290.0676.  
 30.18     (e) "Net minimum tax" means the minimum tax imposed by this 
 30.19  section. 
 30.20     (f) "Minnesota charitable contribution deduction" means a 
 30.21  charitable contribution deduction under section 170 of the 
 30.22  Internal Revenue Code to or for the use of an entity described 
 30.23  in section 290.21, subdivision 3, clauses (a) to (e).  When the 
 30.24  federal deduction for charitable contributions is limited under 
 30.25  section 170(b) of the Internal Revenue Code, the allowable 
 30.26  contributions in the year of contribution are deemed to be first 
 30.27  contributions to entities described in section 290.21, 
 30.28  subdivision 3, clauses (a) to (e). 
 30.29     <b>EFFECTIVE DATE:</b>  This section is effective for taxable 
 30.30  years beginning after December 31, 1999.  
 30.31     Sec. 7.  Minnesota Statutes 1998, section 290.17, 
 30.32  subdivision 2, is amended to read: 
 30.33     Subd. 2.  [INCOME NOT DERIVED FROM CONDUCT OF A TRADE OR 
 30.34  BUSINESS.] The income of a taxpayer subject to the allocation 
 30.35  rules that is not derived from the conduct of a trade or 
 30.36  business must be assigned in accordance with paragraphs (a) to 
 31.1   (f):  
 31.2      (a)(1) Subject to paragraphs (a)(2) and (a)(3), income from 
 31.3   labor or personal or professional services wages as defined in 
 31.4   section 3401(a) and (f) of the Internal Revenue Code is assigned 
 31.5   to this state if, and to the extent that, the labor or services 
 31.6   are work of the employee is performed within it; all other 
 31.7   income from such sources is treated as income from sources 
 31.8   without this state.  
 31.9      Severance pay shall be considered income from labor or 
 31.10  personal or professional services. 
 31.11     (2) In the case of an individual who is a nonresident of 
 31.12  Minnesota and who is an athlete or entertainer, income from 
 31.13  compensation for labor or personal services performed within 
 31.14  this state shall be determined in the following manner:  
 31.15     (i) The amount of income to be assigned to Minnesota for an 
 31.16  individual who is a nonresident salaried athletic team employee 
 31.17  shall be determined by using a fraction in which the denominator 
 31.18  contains the total number of days in which the individual is 
 31.19  under a duty to perform for the employer, and the numerator is 
 31.20  the total number of those days spent in Minnesota.  For purposes 
 31.21  of this paragraph, off-season training activities, unless 
 31.22  conducted at the team's facilities as part of a team imposed 
 31.23  program, are not included in the total number of duty days.  
 31.24  Bonuses earned as a result of play during the regular season or 
 31.25  for participation in championship, play-off, or all-star games 
 31.26  must be allocated under the formula.  Signing bonuses are not 
 31.27  subject to allocation under the formula if they are not 
 31.28  conditional on playing any games for the team, are payable 
 31.29  separately from any other compensation, and are nonrefundable; 
 31.30  and 
 31.31     (ii) The amount of income to be assigned to Minnesota for 
 31.32  an individual who is a nonresident, and who is an athlete or 
 31.33  entertainer not listed in clause (i), for that person's athletic 
 31.34  or entertainment performance in Minnesota shall be determined by 
 31.35  assigning to this state all income from performances or athletic 
 31.36  contests in this state.  
 32.1      (3) For purposes of this section, amounts received by a 
 32.2   nonresident as "retirement income" as defined in section (b)(1) 
 32.3   of the State Income Taxation of Pension Income Act, Public Law 
 32.4   Number 104-95, are not considered income derived from carrying 
 32.5   on a trade or business or from performing personal or 
 32.6   professional services in Minnesota, and are not taxable under 
 32.7   this chapter.  
 32.8      (b) Income or gains from tangible property located in this 
 32.9   state that is not employed in the business of the recipient of 
 32.10  the income or gains must be assigned to this state. 
 32.11     (c) Income or gains from intangible personal property not 
 32.12  employed in the business of the recipient of the income or gains 
 32.13  must be assigned to this state if the recipient of the income or 
 32.14  gains is a resident of this state or is a resident trust or 
 32.15  estate.  
 32.16     Gain on the sale of a partnership interest is allocable to 
 32.17  this state in the ratio of the original cost of partnership 
 32.18  tangible property in this state to the original cost of 
 32.19  partnership tangible property everywhere, determined at the time 
 32.20  of the sale.  If more than 50 percent of the value of the 
 32.21  partnership's assets consists of intangibles, gain or loss from 
 32.22  the sale of the partnership interest is allocated to this state 
 32.23  in accordance with the sales factor of the partnership for its 
 32.24  first full tax period immediately preceding the tax period of 
 32.25  the partnership during which the partnership interest was sold. 
 32.26     Gain on the sale of goodwill or income from a covenant not 
 32.27  to compete that is connected with a business operating all or 
 32.28  partially in Minnesota is allocated to this state to the extent 
 32.29  that the income from the business in the year preceding the year 
 32.30  of sale was assignable to Minnesota under subdivision 3.  
 32.31     When an employer pays an employee for a covenant not to 
 32.32  compete, the income allocated to this state is in the ratio of 
 32.33  the employee's service in Minnesota in the calendar year 
 32.34  preceding leaving the employment of the employer over the total 
 32.35  services performed by the employee for the employer in that year.
 32.36     (d) Income from winnings on Minnesota pari-mutuel betting 
 33.1   tickets, the Minnesota state lottery, and lawful gambling as 
 33.2   defined in section 349.12, subdivision 24, conducted within the 
 33.3   boundaries of the state of Minnesota shall be assigned to this 
 33.4   state.  
 33.5      (e) All items of gross income not covered in paragraphs (a) 
 33.6   to (d) and not part of the taxpayer's income from a trade or 
 33.7   business shall be assigned to the taxpayer's domicile. 
 33.8      (f) For the purposes of this section, working as an 
 33.9   employee shall not be considered to be conducting a trade or 
 33.10  business. 
 33.11     <b>EFFECTIVE DATE:</b>  This section is effective for wages paid 
 33.12  after the date of final enactment of this act, except that to 
 33.13  the extent this section impacts an employer's requirement to 
 33.14  withhold Minnesota tax under Minnesota Statutes, section 290.92, 
 33.15  subdivision 4a, the requirement to withhold is effective for 
 33.16  wages paid after December 31, 2000. 
 33.17     Sec. 8.  [CITY OF LUVERNE.] 
 33.18     Subdivision 1.  [AUTHORIZATION.] The governing body of the 
 33.19  city of Luverne may designate between one and six areas of the 
 33.20  city as border city development zones.  The total area of the 
 33.21  zones may not exceed 100 acres. 
 33.22     Subd. 2.  [APPLICATION OF GENERAL LAW.] (a) The provisions 
 33.23  of Minnesota Statutes, sections 469.1731 to 469.1735, apply to 
 33.24  the border city development zones designated under this section. 
 33.25  The governing body of the city may exercise the powers granted 
 33.26  under Minnesota Statutes, sections 469.1731 to 469.1735, 
 33.27  including powers that apply outside of the zones. 
 33.28     (b) The allocation under subdivision 3 for purposes of 
 33.29  Minnesota Statutes, section 469.1735, subdivision 2, and the 
 33.30  necessary amount of the allocation is appropriated to the 
 33.31  commissioner of revenue. 
 33.32     Subd. 3.  [ALLOCATION OF STATE TAX REDUCTIONS.] (a) The 
 33.33  cumulative total amount of tax reductions for all years of the 
 33.34  program under Minnesota Statutes, sections 469.1731 to 469.1735, 
 33.35  is limited to $183,000, and the maximum for any year is $61,000. 
 33.36     (b) This allocation may be used for tax reductions provided 
 34.1   in Minnesota Statutes, section 469.1732 or 469.1734, or for 
 34.2   reimbursements under Minnesota Statutes, section 469.1735, 
 34.3   subdivision 3, but only if the governing body of the city of 
 34.4   Luverne determines that the tax reduction or offset is necessary 
 34.5   to enable a business to expand within a city or to attract a 
 34.6   business to the city. 
 34.7      (c) The commissioner of revenue may waive the limit under 
 34.8   this subdivision using the same rules and standards provided in 
 34.9   Minnesota Statutes, section 469.169, subdivision 12, paragraph 
 34.10  (b). 
 34.11     <b>EFFECTIVE DATE:</b>  This section is effective upon approval by 
 34.12  the governing body of the city of Luverne and compliance with 
 34.13  the requirements of Minnesota Statutes, section 645.021, 
 34.14  subdivision 3. 
 34.15     Sec. 9.  [TAX INFORMATION SAMPLE DATA STUDY.] 
 34.16     (a) One of the goals of a reengineered income tax system is 
 34.17  to reduce the administrative burden for both taxpayers and tax 
 34.18  administrators.  In order to reduce the cost of handling paper 
 34.19  returns and to explore electronic options for taxpayer filing of 
 34.20  tax data, the department of revenue will explore eliminating the 
 34.21  requirement of Minnesota Statutes, section 289A.08, subdivision 
 34.22  11, that the federal return be attached in filing a Minnesota 
 34.23  individual income tax return.  This federal return information 
 34.24  is used for the purposes of ensuring the accurate calculation of 
 34.25  individuals' Minnesota income tax liabilities and for the 
 34.26  purposes of preparing the microdata samples under Minnesota 
 34.27  Statutes, section 270.0681. 
 34.28     (b) To ensure the continued reliability of income tax data 
 34.29  samples and to evaluate ways in which the quality of samples may 
 34.30  be improved, the commissioner shall study and evaluate 
 34.31  alternatives to requiring taxpayers to attach a copy of their 
 34.32  federal return when filing Minnesota state income tax.  The 
 34.33  study must be prepared in consultation with the coordinating 
 34.34  committee established in Minnesota Statutes, section 270.0681, 
 34.35  subdivision 2.  The study must: 
 34.36     (1) evaluate the quality of federal electronic data 
 35.1   compared to sample data prepared from returns filed with the 
 35.2   department; 
 35.3      (2) evaluate alternative sampling methodology, including 
 35.4   preselection of sampled returns, panel data, and other sampling 
 35.5   methods; and 
 35.6      (3) evaluate and test whether alternative methods can 
 35.7      (i) provide a data sample that is as accurate and reliable 
 35.8   as one prepared from federal returns that are filed with or 
 35.9   attached to Minnesota individual income tax returns; and 
 35.10     (ii) result in a data sample that will continue to be 
 35.11  available to staff of both the department of finance and the 
 35.12  legislature on the same basis as one prepared from returns 
 35.13  required to be attached to or filed with the Minnesota tax 
 35.14  returns. 
 35.15     (c) The commissioner of revenue shall report the findings 
 35.16  of the study to the house tax committee chair, the senate tax 
 35.17  committee chair, and the commissioner of finance. 
 35.18     (d) The commissioner of revenue shall prepare a bill for 
 35.19  introduction in the 2001 legislative session that eliminates, 
 35.20  for some or all taxpayers, the requirement that a copy of the 
 35.21  federal return be filed with the individual income tax return, 
 35.22  if the commissioner determines as a result of the study that: 
 35.23     (1) an alternative method would provide a data sample that 
 35.24  is as accurate and reliable as one prepared from federal returns 
 35.25  required to be filed with the Minnesota return; and 
 35.26     (2) the sample will continue to be available to the staff 
 35.27  of both the department of finance and the legislature on the 
 35.28  same basis as one prepared from returns required to be filed 
 35.29  with Minnesota tax returns. 
 35.30     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 35.31  following final enactment. 
 35.32     Sec. 10.  [COMMISSIONER OF REVENUE; TEMPORARY POWERS.] 
 35.33     Subdivision 1.  [APPLICABILITY.] This section gives the 
 35.34  commissioner of revenue certain temporary powers.  These powers 
 35.35  apply only to taxes imposed under Minnesota Statutes, sections 
 35.36  290.032, 290.06, and 290.091 administered by the commissioner 
 36.1   under Minnesota Statutes, chapters 289A and 290. 
 36.2      Subd. 2.  [PAYMENT OF TAXES.] The commissioner may 
 36.3   establish additional due dates, applicable to certain groups of 
 36.4   taxpayers, for the payment of taxes.  Unless the commissioner 
 36.5   has the written consent of the taxpayer, the additional payment 
 36.6   dates must not require the taxpayer to pay the tax earlier than 
 36.7   the payment dates provided by statute or rule.  The commissioner 
 36.8   may accept various forms of payment, including, but not limited 
 36.9   to, financial transaction cards and electronic funds transfer.  
 36.10     Subd. 3.  [FILING OF RETURN.] The commissioner may 
 36.11  establish additional due dates, applicable to certain groups of 
 36.12  taxpayers, for the filing of tax returns.  Unless the 
 36.13  commissioner has the written consent of the taxpayer, the return 
 36.14  due date must not be earlier than the due date provided by 
 36.15  statute or rule.  In conducting pilot studies, the commissioner 
 36.16  may use tax return forms with varying formats, accept electronic 
 36.17  filed returns, and waive the taxpayer signature requirements.  
 36.18     Subd. 4.  [AGREEMENTS.] The commissioner may enter written 
 36.19  agreements with taxpayers that provide for the payment of taxes 
 36.20  or the filing of returns at dates earlier than provided by 
 36.21  statute or rule.  The commissioner and the taxpayer may also 
 36.22  agree in writing to other changes from the statutory or rule 
 36.23  requirements related to the administration of these taxes.  If 
 36.24  the taxpayer agrees to pay taxes at a date earlier than that 
 36.25  provided by statute, the commissioner may negotiate payments to 
 36.26  the taxpayer to compensate in part or in full for the loss 
 36.27  incurred as a result of the accelerated payment.  
 36.28     Subd. 5.  [PROCEDURE; APPROVAL.] Pilot studies proposed 
 36.29  under these authorities must be presented to the chairs of the 
 36.30  house of representatives tax committee and the senate committee 
 36.31  on taxes and to the chairs of the committees on state government 
 36.32  finance of the house of representatives and the senate.  No 
 36.33  study may be undertaken without the approval of both tax 
 36.34  committee chairs.  If either chair fails to respond within 15 
 36.35  days after the proposal is presented, that chair is considered 
 36.36  to have approved the study.  If the study is approved, the 
 37.1   commissioner shall initially seek participation on a voluntary 
 37.2   basis from within the targeted taxpayer group. 
 37.3      Subd. 6.  [EXPIRATION DATE.] This section expires June 30, 
 37.4   2002, and all pilot projects under this section must be 
 37.5   completed by June 30, 2002. 
 37.6      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 37.7   following final enactment. 
 37.8                              ARTICLE 5
 37.9                            FEDERAL UPDATE
 37.10     Section 1.  Minnesota Statutes 1999 Supplement, section 
 37.11  289A.02, subdivision 7, is amended to read: 
 37.12     Subd. 7.  [INTERNAL REVENUE CODE.] Unless specifically 
 37.13  defined otherwise, "Internal Revenue Code" means the Internal 
 37.14  Revenue Code of 1986, as amended through December 31, 1998 1999. 
 37.15     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
 37.16  290.01, subdivision 19, is amended to read: 
 37.17     Subd. 19.  [NET INCOME.] The term "net income" means the 
 37.18  federal taxable income, as defined in section 63 of the Internal 
 37.19  Revenue Code of 1986, as amended through the date named in this 
 37.20  subdivision, incorporating any elections made by the taxpayer in 
 37.21  accordance with the Internal Revenue Code in determining federal 
 37.22  taxable income for federal income tax purposes, and with the 
 37.23  modifications provided in subdivisions 19a to 19f. 
 37.24     In the case of a regulated investment company or a fund 
 37.25  thereof, as defined in section 851(a) or 851(g) of the Internal 
 37.26  Revenue Code, federal taxable income means investment company 
 37.27  taxable income as defined in section 852(b)(2) of the Internal 
 37.28  Revenue Code, except that:  
 37.29     (1) the exclusion of net capital gain provided in section 
 37.30  852(b)(2)(A) of the Internal Revenue Code does not apply; 
 37.31     (2) the deduction for dividends paid under section 
 37.32  852(b)(2)(D) of the Internal Revenue Code must be applied by 
 37.33  allowing a deduction for capital gain dividends and 
 37.34  exempt-interest dividends as defined in sections 852(b)(3)(C) 
 37.35  and 852(b)(5) of the Internal Revenue Code; and 
 37.36     (3) the deduction for dividends paid must also be applied 
 38.1   in the amount of any undistributed capital gains which the 
 38.2   regulated investment company elects to have treated as provided 
 38.3   in section 852(b)(3)(D) of the Internal Revenue Code.  
 38.4      The net income of a real estate investment trust as defined 
 38.5   and limited by section 856(a), (b), and (c) of the Internal 
 38.6   Revenue Code means the real estate investment trust taxable 
 38.7   income as defined in section 857(b)(2) of the Internal Revenue 
 38.8   Code.  
 38.9      The net income of a designated settlement fund as defined 
 38.10  in section 468B(d) of the Internal Revenue Code means the gross 
 38.11  income as defined in section 468B(b) of the Internal Revenue 
 38.12  Code. 
 38.13     The Internal Revenue Code of 1986, as amended through 
 38.14  December 31, 1986, shall be in effect for taxable years 
 38.15  beginning after December 31, 1986.  The provisions of sections 
 38.16  10104, 10202, 10203, 10204, 10206, 10212, 10221, 10222, 10223, 
 38.17  10226, 10227, 10228, 10611, 10631, 10632, and 10711 of the 
 38.18  Omnibus Budget Reconciliation Act of 1987, Public Law Number 
 38.19  100-203, the provisions of sections 1001, 1002, 1003, 1004, 
 38.20  1005, 1006, 1008, 1009, 1010, 1011, 1011A, 1011B, 1012, 1013, 
 38.21  1014, 1015, 1018, 2004, 3041, 4009, 6007, 6026, 6032, 6137, 
 38.22  6277, and 6282 of the Technical and Miscellaneous Revenue Act of 
 38.23  1988, Public Law Number 100-647, the provisions of sections 
 38.24  7811, 7816, and 7831 of the Omnibus Budget Reconciliation Act of 
 38.25  1989, Public Law Number 101-239, the provisions of sections 
 38.26  1305, 1704(r), and 1704(e)(1) of the Small Business Job 
 38.27  Protection Act, Public Law Number 104-188, and the provisions of 
 38.28  sections 975 and 1604(d)(2) and (e) of the Taxpayer Relief Act 
 38.29  of 1997, Public Law Number 105-34, and the provisions of section 
 38.30  4004 of the Omnibus Consolidated and Emergency Supplemental 
 38.31  Appropriations Act, 1999, Public Law Number 105-277 shall be 
 38.32  effective at the time they become effective for federal income 
 38.33  tax purposes.  
 38.34     The Internal Revenue Code of 1986, as amended through 
 38.35  December 31, 1987, shall be in effect for taxable years 
 38.36  beginning after December 31, 1987.  The provisions of sections 
 39.1   4001, 4002, 4011, 5021, 5041, 5053, 5075, 6003, 6008, 6011, 
 39.2   6030, 6031, 6033, 6057, 6064, 6066, 6079, 6130, 6176, 6180, 
 39.3   6182, 6280, and 6281 of the Technical and Miscellaneous Revenue 
 39.4   Act of 1988, Public Law Number 100-647, the provisions of 
 39.5   sections 7815 and 7821 of the Omnibus Budget Reconciliation Act 
 39.6   of 1989, Public Law Number 101-239, and the provisions of 
 39.7   section 11702 of the Revenue Reconciliation Act of 1990, Public 
 39.8   Law Number 101-508, shall become effective at the time they 
 39.9   become effective for federal tax purposes.  
 39.10     The Internal Revenue Code of 1986, as amended through 
 39.11  December 31, 1988, shall be in effect for taxable years 
 39.12  beginning after December 31, 1988.  The provisions of sections 
 39.13  7101, 7102, 7104, 7105, 7201, 7202, 7203, 7204, 7205, 7206, 
 39.14  7207, 7210, 7211, 7301, 7302, 7303, 7304, 7601, 7621, 7622, 
 39.15  7641, 7642, 7645, 7647, 7651, and 7652 of the Omnibus Budget 
 39.16  Reconciliation Act of 1989, Public Law Number 101-239, the 
 39.17  provision of section 1401 of the Financial Institutions Reform, 
 39.18  Recovery, and Enforcement Act of 1989, Public Law Number 101-73, 
 39.19  the provisions of sections 11701 and 11703 of the Revenue 
 39.20  Reconciliation Act of 1990, Public Law Number 101-508, and the 
 39.21  provisions of sections 1702(g) and 1704(f)(2)(A) and (B) of the 
 39.22  Small Business Job Protection Act, Public Law Number 104-188, 
 39.23  shall become effective at the time they become effective for 
 39.24  federal tax purposes.  
 39.25     The Internal Revenue Code of 1986, as amended through 
 39.26  December 31, 1989, shall be in effect for taxable years 
 39.27  beginning after December 31, 1989.  The provisions of sections 
 39.28  11321, 11322, 11324, 11325, 11403, 11404, 11410, and 11521 of 
 39.29  the Revenue Reconciliation Act of 1990, Public Law Number 
 39.30  101-508, and the provisions of sections 13224 and 13261 of the 
 39.31  Omnibus Budget Reconciliation Act of 1993, Public Law Number 
 39.32  103-66, shall become effective at the time they become effective 
 39.33  for federal purposes.  
 39.34     The Internal Revenue Code of 1986, as amended through 
 39.35  December 31, 1990, shall be in effect for taxable years 
 39.36  beginning after December 31, 1990. 
 40.1      The provisions of section 13431 of the Omnibus Budget 
 40.2   Reconciliation Act of 1993, Public Law Number 103-66, shall 
 40.3   become effective at the time they became effective for federal 
 40.4   purposes.  
 40.5      The Internal Revenue Code of 1986, as amended through 
 40.6   December 31, 1991, shall be in effect for taxable years 
 40.7   beginning after December 31, 1991.  
 40.8      The provisions of sections 1936 and 1937 of the 
 40.9   Comprehensive National Energy Policy Act of 1992, Public Law 
 40.10  Number 102-486, the provisions of sections 13101, 13114, 13122, 
 40.11  13141, 13150, 13151, 13174, 13239, 13301, and 13442 of the 
 40.12  Omnibus Budget Reconciliation Act of 1993, Public Law Number 
 40.13  103-66, and the provisions of section 1604(a)(1), (2), and (3) 
 40.14  of the Taxpayer Relief Act of 1997, Public Law Number 105-34, 
 40.15  shall become effective at the time they become effective for 
 40.16  federal purposes.  
 40.17     The Internal Revenue Code of 1986, as amended through 
 40.18  December 31, 1992, shall be in effect for taxable years 
 40.19  beginning after December 31, 1992.  
 40.20     The provisions of sections 13116, 13121, 13206, 13210, 
 40.21  13222, 13223, 13231, 13232, 13233, 13239, 13262, and 13321 of 
 40.22  the Omnibus Budget Reconciliation Act of 1993, Public Law Number 
 40.23  103-66, the provisions of sections 1703(a), 1703(d), 1703(i), 
 40.24  1703(l), and 1703(m) of the Small Business Job Protection Act, 
 40.25  Public Law Number 104-188, and the provision of section 1604(c) 
 40.26  of the Taxpayer Relief Act of 1997, Public Law Number 105-34, 
 40.27  shall become effective at the time they become effective for 
 40.28  federal purposes. 
 40.29     The Internal Revenue Code of 1986, as amended through 
 40.30  December 31, 1993, shall be in effect for taxable years 
 40.31  beginning after December 31, 1993. 
 40.32     The provision of section 741 of Legislation to Implement 
 40.33  Uruguay Round of General Agreement on Tariffs and Trade, Public 
 40.34  Law Number 103-465, the provisions of sections 1, 2, and 3, of 
 40.35  the Self-Employed Health Insurance Act of 1995, Public Law 
 40.36  Number 104-7, the provision of section 501(b)(2) of the Health 
 41.1   Insurance Portability and Accountability Act, Public Law Number 
 41.2   104-191, the provisions of sections 1604 and 1704(p)(1) and (2) 
 41.3   of the Small Business Job Protection Act, Public Law Number 
 41.4   104-188, and the provisions of sections 1011, 1211(b)(1), and 
 41.5   1602(f) of the Taxpayer Relief Act of 1997, Public Law Number 
 41.6   105-34, shall become effective at the time they become effective 
 41.7   for federal purposes. 
 41.8      The Internal Revenue Code of 1986, as amended through 
 41.9   December 31, 1994, shall be in effect for taxable years 
 41.10  beginning after December 31, 1994. 
 41.11     The provisions of sections 1119(a), 1120, 1121, 1202(a), 
 41.12  1444, 1449(b), 1602(a), 1610(a), 1613, and 1805 of the Small 
 41.13  Business Job Protection Act, Public Law Number 104-188, the 
 41.14  provision of section 511 of the Health Insurance Portability and 
 41.15  Accountability Act, Public Law Number 104-191, and the 
 41.16  provisions of sections 1174 and 1601(i)(2) of the Taxpayer 
 41.17  Relief Act of 1997, Public Law Number 105-34, shall become 
 41.18  effective at the time they become effective for federal purposes.
 41.19     The Internal Revenue Code of 1986, as amended through March 
 41.20  22, 1996, is in effect for taxable years beginning after 
 41.21  December 31, 1995. 
 41.22     The provisions of sections 1113(a), 1117, 1206(a), 1313(a), 
 41.23  1402(a), 1403(a), 1443, 1450, 1501(a), 1605, 1611(a), 1612, 
 41.24  1616, 1617, 1704(l), and 1704(m) of the Small Business Job 
 41.25  Protection Act, Public Law Number 104-188, the provisions of 
 41.26  Public Law Number 104-117, the provisions of sections 313(a) and 
 41.27  (b)(1), 602(a), 913(b), 941, 961, 971, 1001(a) and (b), 1002, 
 41.28  1003, 1012, 1013, 1014, 1061, 1062, 1081, 1084(b), 1086, 1087, 
 41.29  1111(a), 1131(b) and (c), 1211(b), 1213, 1530(c)(2), 1601(f)(5) 
 41.30  and (h), and 1604(d)(1) of the Taxpayer Relief Act of 1997, 
 41.31  Public Law Number 105-34, the provisions of section 6010 of the 
 41.32  Internal Revenue Service Restructuring and Reform Act of 1998, 
 41.33  Public Law Number 105-206, and the provisions of section 4003 of 
 41.34  the Omnibus Consolidated and Emergency Supplemental 
 41.35  Appropriations Act, 1999, Public Law Number 105-277, shall 
 41.36  become effective at the time they become effective for federal 
 42.1   purposes. 
 42.2      The Internal Revenue Code of 1986, as amended through 
 42.3   December 31, 1996, shall be in effect for taxable years 
 42.4   beginning after December 31, 1996. 
 42.5      The provisions of sections 202(a) and (b), 221(a), 225, 
 42.6   312, 313, 913(a), 934, 962, 1004, 1005, 1052, 1063, 1084(a) and 
 42.7   (c), 1089, 1112, 1171, 1204, 1271(a) and (b), 1305(a), 1306, 
 42.8   1307, 1308, 1309, 1501(b), 1502(b), 1504(a), 1505, 1527, 1528, 
 42.9   1530, 1601(d), (e), (f), and (i) and 1602(a), (b), (c), and (e) 
 42.10  of the Taxpayer Relief Act of 1997, Public Law Number 105-34, 
 42.11  the provisions of sections 6004, 6005, 6012, 6013, 6015, 6016, 
 42.12  7002, and 7003 of the Internal Revenue Service Restructuring and 
 42.13  Reform Act of 1998, Public Law Number 105-206, and the 
 42.14  provisions of section 3001 of the Omnibus Consolidated and 
 42.15  Emergency Supplemental Appropriations Act, 1999, Public Law 
 42.16  Number 105-277, and the provisions of section 3001 of the 
 42.17  Miscellaneous Trade and Technical Corrections Act of 1999, 
 42.18  Public Law Number 106-36, shall become effective at the time 
 42.19  they become effective for federal purposes. 
 42.20     The Internal Revenue Code of 1986, as amended through 
 42.21  December 31, 1997, shall be in effect for taxable years 
 42.22  beginning after December 31, 1997. 
 42.23     The provisions of sections 5002, 6009, 6011, and 7001 of 
 42.24  the Internal Revenue Service Restructuring and Reform Act of 
 42.25  1998, Public Law Number 105-206, the provisions of section 9010 
 42.26  of the Transportation Equity Act for the 21st Century, Public 
 42.27  Law Number 105-178, the provisions of sections 1004, 4002, and 
 42.28  5301 of the Omnibus Consolidation and Emergency Supplemental 
 42.29  Appropriations Act, 1999, Public Law Number 105-277, and the 
 42.30  provision of section 303 of the Ricky Ray Hemophilia Relief Fund 
 42.31  Act of 1998, Public Law Number 105-369, and the provisions of 
 42.32  sections 532, 534, 536, 537, and 538 of the Ticket to Work and 
 42.33  Work Incentives Improvement Act of 1999, Public Law Number 
 42.34  106-170, shall become effective at the time they become 
 42.35  effective for federal purposes. 
 42.36     The Internal Revenue Code of 1986, as amended through 
 43.1   December 31, 1998, shall be in effect for taxable years 
 43.2   beginning after December 31, 1998. 
 43.3      The Internal Revenue Code of 1986, as amended through 
 43.4   December 31, 1999, shall be in effect for taxable years 
 43.5   beginning after December 31, 1999. 
 43.6      Except as otherwise provided, references to the Internal 
 43.7   Revenue Code in subdivisions 19a to 19g mean the code in effect 
 43.8   for purposes of determining net income for the applicable year. 
 43.9      Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 43.10  290.01, subdivision 31, is amended to read: 
 43.11     Subd. 31.  [INTERNAL REVENUE CODE.] Unless specifically 
 43.12  defined otherwise, "Internal Revenue Code" means the Internal 
 43.13  Revenue Code of 1986, as amended through December 31, 1998 1999. 
 43.14     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
 43.15  290A.03, subdivision 15, is amended to read: 
 43.16     Subd. 15.  [INTERNAL REVENUE CODE.] "Internal Revenue Code" 
 43.17  means the Internal Revenue Code of 1986, as amended through 
 43.18  December 31, 1998 1999. 
 43.19     Sec. 5.  Minnesota Statutes 1999 Supplement, section 
 43.20  291.005, subdivision 1, is amended to read: 
 43.21     Subdivision 1.  Unless the context otherwise clearly 
 43.22  requires, the following terms used in this chapter shall have 
 43.23  the following meanings: 
 43.24     (1) "Federal gross estate" means the gross estate of a 
 43.25  decedent as valued and otherwise determined for federal estate 
 43.26  tax purposes by federal taxing authorities pursuant to the 
 43.27  provisions of the Internal Revenue Code. 
 43.28     (2) "Minnesota gross estate" means the federal gross estate 
 43.29  of a decedent after (a) excluding therefrom any property 
 43.30  included therein which has its situs outside Minnesota and (b) 
 43.31  including therein any property omitted from the federal gross 
 43.32  estate which is includable therein, has its situs in Minnesota, 
 43.33  and was not disclosed to federal taxing authorities.  
 43.34     (3) "Personal representative" means the executor, 
 43.35  administrator or other person appointed by the court to 
 43.36  administer and dispose of the property of the decedent.  If 
 44.1   there is no executor, administrator or other person appointed, 
 44.2   qualified, and acting within this state, then any person in 
 44.3   actual or constructive possession of any property having a situs 
 44.4   in this state which is included in the federal gross estate of 
 44.5   the decedent shall be deemed to be a personal representative to 
 44.6   the extent of the property and the Minnesota estate tax due with 
 44.7   respect to the property. 
 44.8      (4) "Resident decedent" means an individual whose domicile 
 44.9   at the time of death was in Minnesota. 
 44.10     (5) "Nonresident decedent" means an individual whose 
 44.11  domicile at the time of death was not in Minnesota. 
 44.12     (6) "Situs of property" means, with respect to real 
 44.13  property, the state or country in which it is located; with 
 44.14  respect to tangible personal property, the state or country in 
 44.15  which it was normally kept or located at the time of the 
 44.16  decedent's death; and with respect to intangible personal 
 44.17  property, the state or country in which the decedent was 
 44.18  domiciled at death. 
 44.19     (7) "Commissioner" means the commissioner of revenue or any 
 44.20  person to whom the commissioner has delegated functions under 
 44.21  this chapter. 
 44.22     (8) "Internal Revenue Code" means the United States 
 44.23  Internal Revenue Code of 1986, as amended through December 31, 
 44.24  1998 1999. 
 44.25     <b>EFFECTIVE DATE:</b>  Sections 1, 2, 4, and 5 are effective the 
 44.26  day following final enactment, except that the striking of 
 44.27  language in section 2 is effective for tax years beginning after 
 44.28  December 31, 1999.  Section 3 is effective for tax years 
 44.29  beginning after December 31, 1999. 
 44.30                             ARTICLE 6
 44.31                   MOTOR VEHICLE REGISTRATION TAX
 44.32     Section 1.  Minnesota Statutes 1998, section 168.013, 
 44.33  subdivision 1a, is amended to read: 
 44.34     Subd. 1a.  [PASSENGER AUTOMOBILE; HEARSE.] (a) On passenger 
 44.35  automobiles as defined in section 168.011, subdivision 7, and 
 44.36  hearses, except as otherwise provided, the tax shall be is $10 
 45.1   plus an additional tax equal to 1.25 1.2 percent of the base 
 45.2   value.  
 45.3      (b) Subject to the classification provisions herein in this 
 45.4   subdivision, "base value" means the manufacturer's suggested 
 45.5   retail price of the vehicle, including destination charge, using 
 45.6   list price information published by the manufacturer or 
 45.7   determined by the registrar if no suggested retail price exists, 
 45.8   and shall.  Base value does not include the cost of each 
 45.9   accessory or item of optional equipment separately added to the 
 45.10  vehicle and the suggested retail price. 
 45.11     (c) If the manufacturer's list price information contains a 
 45.12  single vehicle identification number followed by various 
 45.13  descriptions and suggested retail prices, the registrar shall 
 45.14  select from those listings only the lowest price for determining 
 45.15  base value. 
 45.16     (d) If unable to determine the base value because the 
 45.17  vehicle is specially constructed, or for due to any other 
 45.18  reason, the registrar may establish such the value upon the cost 
 45.19  price to the purchaser or owner as evidenced by a certificate of 
 45.20  cost but not including Minnesota sales or use tax or any local 
 45.21  sales or other local tax. 
 45.22     (e) The registrar shall classify every vehicle in its 
 45.23  proper base value class as follows: 
 45.24                        FROM                   TO
 45.25                        $  0                $199.99
 45.26                         200                 399.99
 45.27  and thereafter, consisting of a series of classes successively 
 45.28  set in brackets having a spread of $200 consisting of such, with 
 45.29  that number of classes as will required to permit classification 
 45.30  of all vehicles. 
 45.31     (f) The base value for purposes of this section shall be is 
 45.32  the middle point between the extremes of its class. 
 45.33     (g) The registrar shall establish the base value, when new, 
 45.34  of every passenger automobile and hearse registered prior to the 
 45.35  effective date of Extra Session Laws 1971, chapter 31, using 
 45.36  list price information published by the manufacturer or any 
 46.1   nationally recognized firm or association compiling such data 
 46.2   for the automotive industry.  If unable to ascertain the base 
 46.3   value of any registered vehicle in the foregoing this manner, 
 46.4   the registrar may use any other available source or method.  The 
 46.5   tax on all previously registered vehicles shall must be computed 
 46.6   upon the base value thus determined taking into account the 
 46.7   depreciation provisions of paragraph (h). 
 46.8      (h) Except as provided in paragraph (i), The annual 
 46.9   additional tax computed upon the base value as provided herein 
 46.10  of a passenger automobile or hearse, during the first and second 
 46.11  years year of vehicle life shall be is computed upon 100 percent 
 46.12  of the base value; for the third and fourth years second year, 
 46.13  90 percent of such that value; for the fifth and sixth years, 75 
 46.14  third year, 85 percent of that value; for the fourth year, 75 
 46.15  percent of such that value; for the seventh fifth year, 60 65
 46.16  percent of such that value; for the sixth year, 55 percent of 
 46.17  that value; for the eighth seventh year, 40 45 percent of 
 46.18  such that value; for the ninth eighth year, 30 35 percent of 
 46.19  such that value; for the ninth year, 25 percent of that value; 
 46.20  for the tenth year, ten percent of such that value; for the 11th 
 46.21  and each succeeding year, the sum of $25 $20.  
 46.22     In no event shall The annual additional tax must not be 
 46.23  less than $25 $20.  
 46.24     (i) The annual additional tax under paragraph (h) on a 
 46.25  motor vehicle on which the first annual tax was paid before 
 46.26  January 1, 1990, must not exceed the tax that was paid on that 
 46.27  vehicle the year before. 
 46.28     Sec. 2.  [TRANSFER.] 
 46.29     $75,700,000 is appropriated from the general fund to the 
 46.30  commissioner of finance for transfer to the highway user tax 
 46.31  distribution fund. 
 46.32     <b>EFFECTIVE DATE:</b>  Section 1 is effective July 1, 2000, for 
 46.33  registrations due on or after that date.  Section 2 is effective 
 46.34  July 1, 2000.  Section 1 is repealed the day after the 2000 
 46.35  general election if an amendment proposed to the Minnesota 
 46.36  Constitution dedicating at least 15 percent of the motor vehicle 
 47.1   sales tax proceeds to the highway user tax distribution fund is 
 47.2   not adopted. 
 47.3                              ARTICLE 7
 47.4                              SALES TAX
 47.5      Section 1.  Minnesota Statutes 1998, section 297A.01, 
 47.6   subdivision 3, is amended to read: 
 47.7      Subd. 3.  A "sale" and a "purchase" includes, but is not 
 47.8   limited to, each of the following transactions: 
 47.9      (a) Any transfer of title or possession, or both, of 
 47.10  tangible personal property, whether absolutely or conditionally, 
 47.11  and the leasing of or the granting of a license to use or 
 47.12  consume tangible personal property other than manufactured homes 
 47.13  used for residential purposes for a continuous period of 30 days 
 47.14  or more, for a consideration in money or by exchange or barter; 
 47.15     (b) The production, fabrication, printing, or processing of 
 47.16  tangible personal property for a consideration for consumers who 
 47.17  furnish either directly or indirectly the materials used in the 
 47.18  production, fabrication, printing, or processing; 
 47.19     (c) The furnishing, preparing, or serving for a 
 47.20  consideration of food, meals, or drinks.  "Sale" or "purchase" 
 47.21  does not include: 
 47.22     (1) meals or drinks served to patients, inmates, or persons 
 47.23  residing at hospitals, sanitariums, nursing homes, senior 
 47.24  citizens homes, and correctional, detention, and detoxification 
 47.25  facilities; 
 47.26     (2) meals or drinks purchased for and served exclusively to 
 47.27  individuals who are 60 years of age or over and their spouses or 
 47.28  to the handicapped and their spouses by governmental agencies, 
 47.29  nonprofit organizations, agencies, or churches or pursuant to 
 47.30  any program funded in whole or part through 42 USCA sections 
 47.31  3001 through 3045, wherever delivered, prepared or served; or 
 47.32     (3) meals and lunches served at public and private schools, 
 47.33  universities, or colleges. 
 47.34  Notwithstanding section 297A.25, subdivision 2, taxable food or 
 47.35  meals include, but are not limited to, the following:  
 47.36     (i) food or drinks sold by the retailer for immediate 
 48.1   consumption on the retailer's premises.  Food and drinks sold 
 48.2   within a building or grounds which require an admission charge 
 48.3   for entrance are presumed to be sold for consumption on the 
 48.4   premises; 
 48.5      (ii) food or drinks prepared by the retailer for immediate 
 48.6   consumption either on or off the retailer's premises.  For 
 48.7   purposes of this subdivision, "food or drinks prepared for 
 48.8   immediate consumption" includes any food product upon which an 
 48.9   act of preparation including, but not limited to, cooking, 
 48.10  mixing, sandwich making, blending, heating, or pouring has been 
 48.11  performed by the retailer so the food product may be immediately 
 48.12  consumed by the purchaser; 
 48.13     (iii) ice cream, ice milk, frozen yogurt products, or 
 48.14  frozen novelties sold in single or individual servings including 
 48.15  cones, sundaes, and snow cones.  For purposes of this 
 48.16  subdivision, "single or individual servings" does not include 
 48.17  products when sold in bulk containers or bulk packaging; 
 48.18     (iv) soft drinks and other beverages including all 
 48.19  carbonated and noncarbonated beverages or drinks sold in liquid 
 48.20  form except beverages or drinks which contain milk or milk 
 48.21  products, beverages or drinks containing 15 or more percent 
 48.22  fruit juice, and noncarbonated and noneffervescent bottled water 
 48.23  sold in individual containers of one-half gallon or more in 
 48.24  size; 
 48.25     (v) gum, candy, and candy products, except when sold for 
 48.26  fundraising purposes by a nonprofit organization that provides 
 48.27  educational and social activities primarily for young people 18 
 48.28  years of age and under; 
 48.29     (vi) ice; 
 48.30     (vii) all food sold from vending machines, except: 
 48.31     (A) beverages or drinks which contain milk or milk 
 48.32  products; 
 48.33     (B) beverages or drinks which contain 15 or more percent 
 48.34  fruit juice; 
 48.35     (C) fruit and fruit products; 
 48.36     (D) vegetables; 
 49.1      (E) granola bars, breakfast bars, energy bars, and similar 
 49.2   items; and 
 49.3      (F) yogurt and pudding; 
 49.4      (viii) all food for immediate consumption sold from 
 49.5   concession stands and vehicles; 
 49.6      (ix) party trays; 
 49.7      (x) all meals and single servings of packaged snack food 
 49.8   sold in restaurants and bars; and 
 49.9      (xi) bakery products: 
 49.10     (A) prepared by the retailer for consumption on the 
 49.11  retailer's premises; 
 49.12     (B) sold at a place that charges admission; 
 49.13     (C) sold from vending machines; or 
 49.14     (D) sold in single or individual servings from concession 
 49.15  stands, vehicles, bars, and restaurants.  For purposes of this 
 49.16  subdivision, "single or individual servings" does not include 
 49.17  products when sold in bulk containers or bulk packaging.  
 49.18     For purposes of this subdivision, "premises" means the 
 49.19  total space and facilities, including buildings, grounds, and 
 49.20  parking lots that are made available or that are available for 
 49.21  use by the retailer or customer for the purpose of sale or 
 49.22  consumption of prepared food and drinks.  The premises of a 
 49.23  caterer is the place where the catered food or drinks are 
 49.24  served; 
 49.25     (d) The granting of the privilege of admission to places of 
 49.26  amusement, recreational areas, or athletic events, except a 
 49.27  world championship football game sponsored by the national 
 49.28  football league, and the privilege of having access to and the 
 49.29  use of amusement devices, tanning facilities, reducing salons, 
 49.30  steam baths, turkish baths, health clubs, and spas or athletic 
 49.31  facilities; 
 49.32     (e) The furnishing for a consideration of lodging and 
 49.33  related services by a hotel, rooming house, tourist court, motel 
 49.34  or trailer camp and of the granting of any similar license to 
 49.35  use real property other than the renting or leasing thereof for 
 49.36  a continuous period of 30 days or more; 
 50.1      (f) The furnishing for a consideration of electricity, gas, 
 50.2   water, or steam for use or consumption within this state, or 
 50.3   local exchange telephone service, intrastate toll service, and 
 50.4   interstate toll service, if that service originates from and is 
 50.5   charged to a telephone located in this state.  Telephone service 
 50.6   does not include services purchased with prepaid telephone 
 50.7   calling cards.  Telephone service includes paging services and 
 50.8   private communication service, as defined in United States Code, 
 50.9   title 26, section 4252(d), as amended through December 31, 1991, 
 50.10  except for private communication service purchased by an agent 
 50.11  acting on behalf of the state lottery.  The furnishing for a 
 50.12  consideration of access to telephone services by a hotel to its 
 50.13  guests is a sale under this clause.  Sales by municipal 
 50.14  corporations in a proprietary capacity are included in the 
 50.15  provisions of this clause.  The furnishing of water and sewer 
 50.16  services for residential use shall not be considered a sale.  
 50.17  The sale of natural gas to be used as a fuel in vehicles 
 50.18  propelled by natural gas shall not be considered a sale for the 
 50.19  purposes of this section; 
 50.20     (g) The furnishing for a consideration of cable television 
 50.21  services, including charges for basic service, charges for 
 50.22  premium service, and any other charges for any other 
 50.23  pay-per-view, monthly, or similar television services; 
 50.24     (h) The furnishing for a consideration of parking services, 
 50.25  whether on a contractual, hourly, or other periodic basis, 
 50.26  except for parking at a meter; 
 50.27     (i) The furnishing for a consideration of services listed 
 50.28  in this paragraph: 
 50.29     (i) (1) laundry and dry cleaning services including 
 50.30  cleaning, pressing, repairing, altering, and storing clothes, 
 50.31  linen services and supply, cleaning and blocking hats, and 
 50.32  carpet, drapery, upholstery, and industrial cleaning.  Laundry 
 50.33  and dry cleaning services do not include services provided by 
 50.34  coin operated facilities operated by the customer; 
 50.35     (ii) (2) motor vehicle washing, waxing, and cleaning 
 50.36  services, including services provided by coin-operated 
 51.1   facilities operated by the customer, and rustproofing, 
 51.2   undercoating, and towing of motor vehicles; 
 51.3      (iii) (3) building and residential cleaning, maintenance, 
 51.4   and disinfecting and exterminating services; 
 51.5      (iv) (4) detective services, security services, burglar, 
 51.6   fire alarm, and armored car services; but not including services 
 51.7   performed within the jurisdiction they serve by off-duty 
 51.8   licensed peace officers as defined in section 626.84, 
 51.9   subdivision 1, or services provided by a nonprofit organization 
 51.10  for monitoring and electronic surveillance of persons placed on 
 51.11  in-home detention pursuant to court order or under the direction 
 51.12  of the Minnesota department of corrections; 
 51.13     (v) (5) pet grooming services; 
 51.14     (vi) (6) lawn care, fertilizing, mowing, spraying and 
 51.15  sprigging services; garden planting and maintenance; tree, bush, 
 51.16  and shrub pruning, bracing, spraying, and surgery; indoor plant 
 51.17  care; tree, bush, shrub and stump removal; and tree trimming for 
 51.18  public utility lines.  Services performed under a construction 
 51.19  contract for the installation of shrubbery, plants, sod, trees, 
 51.20  bushes, and similar items are not taxable; 
 51.21     (vii) (7) massages, except when provided by a licensed 
 51.22  health care facility or professional or upon written referral 
 51.23  from a licensed health care facility or professional for 
 51.24  treatment of illness, injury, or disease; and 
 51.25     (viii) (8) the furnishing for consideration of lodging, 
 51.26  board and care services for animals in kennels and other similar 
 51.27  arrangements, but excluding veterinary and horse boarding 
 51.28  services. 
 51.29  The services listed in this paragraph are taxable under section 
 51.30  297A.02 if the service is performed wholly within Minnesota or 
 51.31  if the service is performed partly within and partly without 
 51.32  Minnesota and the greater proportion of the service is performed 
 51.33  in Minnesota, based on the cost of performance.  In applying the 
 51.34  provisions of this chapter, the terms "tangible personal 
 51.35  property" and "sales at retail" include taxable services and the 
 51.36  provision of taxable services, unless specifically provided 
 52.1   otherwise.  Services performed by an employee for an employer 
 52.2   are not taxable under this paragraph.  Services performed by a 
 52.3   partnership or association for another partnership or 
 52.4   association are not taxable under this paragraph if one of the 
 52.5   entities owns or controls more than 80 percent of the voting 
 52.6   power of the equity interest in the other entity.  Services 
 52.7   performed between members of an affiliated group of corporations 
 52.8   are not taxable.  For purposes of this section, "affiliated 
 52.9   group of corporations" includes those entities that would be 
 52.10  classified as a member of an affiliated group under United 
 52.11  States Code, title 26, section 1504, as amended through December 
 52.12  31, 1987, and who are eligible to file a consolidated tax return 
 52.13  for federal income tax purposes; 
 52.14     (j) A "sale" and a "purchase" includes the transfer of 
 52.15  computer software, meaning information and directions that 
 52.16  dictate the function performed by data processing equipment.  A 
 52.17  "sale" and a "purchase" does not include the design, 
 52.18  development, writing, translation, fabrication, lease, or 
 52.19  transfer for a consideration of title or possession of a custom 
 52.20  computer program; and 
 52.21     (k) The granting of membership in a club, association, or 
 52.22  other organization if: 
 52.23     (1) the club, association, or other organization makes 
 52.24  available for the use of its members sports and athletic 
 52.25  facilities (without regard to whether a separate charge is 
 52.26  assessed for use of the facilities); and 
 52.27     (2) use of the sports and athletic facilities is not made 
 52.28  available to the general public on the same basis as it is made 
 52.29  available to members.  
 52.30  Granting of membership includes both one-time initiation fees 
 52.31  and periodic membership dues.  Sports and athletic facilities 
 52.32  include golf courses, tennis, racquetball, handball and squash 
 52.33  courts, basketball and volleyball facilities, running tracks, 
 52.34  exercise equipment, swimming pools, and other similar athletic 
 52.35  or sports facilities.  The provisions of this paragraph do not 
 52.36  apply to camps or other recreation facilities owned and operated 
 53.1   by an exempt organization under section 501(c)(3) of the 
 53.2   Internal Revenue Code of 1986, as amended through December 31, 
 53.3   1992, for educational and social activities for young people 
 53.4   primarily age 18 and under.  
 53.5      <b>EFFECTIVE DATE:</b>  This section is effective for sales after 
 53.6   June 30, 2000. 
 53.7      Sec. 2.  Minnesota Statutes 1998, section 297A.01, 
 53.8   subdivision 15, is amended to read: 
 53.9      Subd. 15.  "Farm machinery" means new or used machinery, 
 53.10  equipment, implements, accessories, and contrivances used 
 53.11  directly and principally in the production for sale, but not 
 53.12  including the processing, of livestock, dairy animals, dairy 
 53.13  products, poultry and poultry products, fruits, vegetables, 
 53.14  trees, shrubs, forage, grains and bees and apiary products.  
 53.15  "Farm machinery"  includes: 
 53.16     (1) machinery for the preparation, seeding or cultivation 
 53.17  of soil for growing agricultural crops and sod, harvesting and 
 53.18  threshing of agricultural products, harvesting or mowing of sod, 
 53.19  and certain machinery for dairy, livestock and poultry farms; 
 53.20     (2) barn cleaners, milking systems, grain dryers, automatic 
 53.21  feeding systems and similar installations, whether or not the 
 53.22  equipment is installed by the seller and becomes part of the 
 53.23  real property; 
 53.24     (3) irrigation equipment sold for exclusively agricultural 
 53.25  use, including pumps, pipe fittings, valves, sprinklers and 
 53.26  other equipment necessary to the operation of an irrigation 
 53.27  system when sold as part of an irrigation system, whether or not 
 53.28  the equipment is installed by the seller and becomes part of the 
 53.29  real property; 
 53.30     (4) logging equipment, including chain saws used for 
 53.31  commercial logging; 
 53.32     (5) fencing used for the containment of farmed cervidae, as 
 53.33  defined in section 17.451, subdivision 2; 
 53.34     (6) primary and backup generator units used to generate 
 53.35  electricity for the purpose of operating farm machinery, as 
 53.36  defined in this subdivision, or providing light or space heating 
 54.1   necessary for the production of livestock, dairy animals, dairy 
 54.2   products, or poultry and poultry products; and 
 54.3      (7) aquaculture production equipment as defined in 
 54.4   subdivision 19.  
 54.5      Repair or replacement parts for farm machinery shall not be 
 54.6   included in the definition of farm machinery.  
 54.7      Tools, shop equipment, grain bins, feed bunks, fencing 
 54.8   material except fencing material covered by clause (5), 
 54.9   communication equipment and other farm supplies shall not be 
 54.10  considered to be farm machinery.  "Farm machinery" does not 
 54.11  include motor vehicles taxed under chapter 297B, snowmobiles, 
 54.12  snow blowers, lawn mowers except those used in the production of 
 54.13  sod for sale, garden-type tractors or garden tillers and the 
 54.14  repair and replacement parts for those vehicles and machines. 
 54.15     <b>EFFECTIVE DATE:</b>  This section is effective for sales and 
 54.16  purchases occurring after June 30, 2000. 
 54.17     Sec. 3.  Minnesota Statutes 1998, section 297A.15, is 
 54.18  amended by adding a subdivision to read: 
 54.19     Subd. 8.  [REFUND; APPROPRIATION; COMMUTER RAIL FUEL.] If 
 54.20  fuel described in section 297A.25, subdivision 7, clause (6), is 
 54.21  purchased by the operator of the commuter rail system, a refund 
 54.22  equal to the taxes paid on the fuel must be paid to the operator 
 54.23  of the commuter rail system.  The tax must be imposed and 
 54.24  collected as if the sales were taxable and the rate under 
 54.25  section 297A.02, subdivision 1, applied.  An application for 
 54.26  refund must be submitted by the operator of the commuter rail 
 54.27  system and must include sufficient information to permit the 
 54.28  commissioner to verify the sales taxes paid.  The amount 
 54.29  required to make the refunds is annually appropriated to the 
 54.30  commissioner.  Interest must be paid on the refund at the rate 
 54.31  in section 270.76 from 60 days after the date the refund claim 
 54.32  is filed with the commissioner. 
 54.33     <b>EFFECTIVE DATE:</b>  This section is effective for purchases 
 54.34  after June 30, 2000. 
 54.35     Sec. 4.  Minnesota Statutes 1998, section 297A.25, 
 54.36  subdivision 5, is amended to read: 
 55.1      Subd. 5.  [OUTSTATE TRANSPORT OR DELIVERY.] The gross 
 55.2   receipts from the following sales of, and storage, use, or 
 55.3   consumption of, tangible personal property are exempt:  
 55.4      (1) property which, without intermediate use, is shipped or 
 55.5   transported outside Minnesota by the purchaser and thereafter 
 55.6   used in a trade or business or is stored, processed, fabricated 
 55.7   or manufactured into, attached to or incorporated into other 
 55.8   tangible personal property transported or shipped outside 
 55.9   Minnesota and thereafter used in a trade or business outside 
 55.10  Minnesota, and which is not thereafter returned to a point 
 55.11  within Minnesota, except in the course of interstate commerce 
 55.12  (storage shall not constitute intermediate use); provided that 
 55.13  the property is not subject to tax in that state or country to 
 55.14  which it is transported for storage or use and provided further 
 55.15  that sales of tangible personal property to be used in other 
 55.16  states or countries as part of a maintenance contract shall be 
 55.17  specifically exempt; or 
 55.18     (2) property which the seller delivers to a common carrier 
 55.19  for delivery outside Minnesota, places in the United States mail 
 55.20  or parcel post directed to the purchaser outside Minnesota, or 
 55.21  delivers to the purchaser outside Minnesota by means of the 
 55.22  seller's own delivery vehicles, and which is not thereafter 
 55.23  returned to a point within Minnesota, except in the course of 
 55.24  interstate commerce; or 
 55.25     (3) aircraft, as defined in section 360.511 and approved by 
 55.26  the Federal Aviation Administration, and which the seller 
 55.27  delivers to a purchaser outside Minnesota or which, without 
 55.28  intermediate use, is shipped or transported outside Minnesota by 
 55.29  the purchaser, but only if the purchaser is not a resident of 
 55.30  Minnesota and provided that the aircraft is not thereafter 
 55.31  returned to a point within Minnesota, except in the course of 
 55.32  interstate commerce or isolated and occasional use and will be 
 55.33  registered in another state or country upon its removal from 
 55.34  Minnesota; this exemption applies even if the purchaser takes 
 55.35  possession of the aircraft in Minnesota and uses the aircraft in 
 55.36  the state exclusively for training purposes for a period not to 
 56.1   exceed ten days prior to removing the aircraft from this state. 
 56.2      <b>EFFECTIVE DATE:</b>  This section is effective for purchases 
 56.3   made after the date of final enactment. 
 56.4      Sec. 5.  Minnesota Statutes 1998, section 297A.25, 
 56.5   subdivision 7, is amended to read: 
 56.6      Subd. 7.  [PETROLEUM PRODUCTS.] The gross receipts from the 
 56.7   sale of and storage, use or consumption of the following 
 56.8   petroleum products are exempt:  
 56.9      (1) products upon which a tax has been imposed and paid 
 56.10  under the provisions of chapter 296A, and no refund has been or 
 56.11  will be allowed because the buyer used the fuel for nonhighway 
 56.12  use; 
 56.13     (2) products which are used in the improvement of 
 56.14  agricultural land by constructing, maintaining, and repairing 
 56.15  drainage ditches, tile drainage systems, grass waterways, water 
 56.16  impoundment, and other erosion control structures; 
 56.17     (3) products purchased by a transit system receiving 
 56.18  financial assistance under section 174.24 or 473.384; 
 56.19     (4) products used in a passenger snowmobile, as defined in 
 56.20  section 296A.01, subdivision 39, for off-highway business use as 
 56.21  part of the operations of a resort as provided under section 
 56.22  296A.16, subdivision 2, clause (2); or 
 56.23     (5) products purchased by a state or a political 
 56.24  subdivision of a state for use in motor vehicles exempt from 
 56.25  registration under section 168.012, subdivision 1, paragraph 
 56.26  (b); or 
 56.27     (6) products purchased for use as fuel for a commuter rail 
 56.28  system operating under sections 174.80 to 174.90, provided that 
 56.29  the tax must be paid on these purchases and a refund of the tax 
 56.30  applied for as provided in section 297A.15, subdivision 8. 
 56.31     <b>EFFECTIVE DATE:</b>  This section is effective for purchases 
 56.32  after June 30, 2000. 
 56.33     Sec. 6.  Minnesota Statutes 1999 Supplement, section 
 56.34  297A.25, subdivision 9, is amended to read: 
 56.35     Subd. 9.  [MATERIALS CONSUMED IN PRODUCTION.] The gross 
 56.36  receipts from the sale of and the storage, use, or consumption 
 57.1   of all materials, including chemicals, fuels, petroleum 
 57.2   products, lubricants, packaging materials, including returnable 
 57.3   containers used in packaging food and beverage products, feeds, 
 57.4   seeds, fertilizers, electricity, gas and steam, used or consumed 
 57.5   in agricultural or industrial production of personal property 
 57.6   intended to be sold ultimately at retail, whether or not the 
 57.7   item so used becomes an ingredient or constituent part of the 
 57.8   property produced are exempt.  Seeds, trees, fertilizers, and 
 57.9   herbicides purchased for use by farmers in the Conservation 
 57.10  Reserve Program under United States Code, title 16, section 
 57.11  590h, as amended through December 31, 1991, the Integrated Farm 
 57.12  Management Program under section 1627 of Public Law Number 
 57.13  101-624, the Wheat and Feed Grain Programs under sections 301 to 
 57.14  305 and 401 to 405 of Public Law Number 101-624, and the 
 57.15  conservation reserve program under sections 103F.505 to 
 57.16  103F.531, are included in this exemption.  Sales to a 
 57.17  veterinarian of materials used or consumed in the care, 
 57.18  medication, and treatment of horses and agricultural production 
 57.19  animals are exempt under this subdivision.  Chemicals used for 
 57.20  cleaning food processing machinery and equipment are included in 
 57.21  this exemption.  Materials, including chemicals, fuels, and 
 57.22  electricity purchased by persons engaged in agricultural or 
 57.23  industrial production to treat waste generated as a result of 
 57.24  the production process are included in this exemption.  Such 
 57.25  production shall include, but is not limited to, research, 
 57.26  development, design or production of any tangible personal 
 57.27  property, manufacturing, processing (other than by restaurants 
 57.28  and consumers) of agricultural products whether vegetable or 
 57.29  animal, commercial fishing, refining, smelting, reducing, 
 57.30  brewing, distilling, printing, mining, quarrying, lumbering, 
 57.31  generating electricity and the production of road building 
 57.32  materials.  Such production shall not include painting, 
 57.33  cleaning, repairing or similar processing of property except as 
 57.34  part of the original manufacturing process.  Machinery, 
 57.35  equipment, implements, tools, accessories, appliances, 
 57.36  contrivances, furniture and fixtures, used in such production 
 58.1   and fuel, electricity, gas or steam used for space heating or 
 58.2   lighting, are not included within this exemption; however, 
 58.3   accessory tools, equipment and other short lived items, which 
 58.4   are separate detachable units used in producing a direct effect 
 58.5   upon the product, where such items have an ordinary useful life 
 58.6   of less than 12 months, are included within the exemption 
 58.7   provided herein.  The following materials, tools, and equipment 
 58.8   used in metalcasting are exempt under this subdivision: 
 58.9   crucibles, thermocouple protection sheaths and tubes, stalk 
 58.10  tubes, refractory materials, molten metal filters and filter 
 58.11  boxes, and degassing lances, and base blocks.  Electricity used 
 58.12  to make snow for outdoor use for ski hills, ski slopes, or ski 
 58.13  trails is included in this exemption.  Petroleum and special 
 58.14  fuels used in producing or generating power for propelling 
 58.15  ready-mixed concrete trucks on the public highways of this state 
 58.16  are not included in this exemption. 
 58.17     <b>EFFECTIVE DATE:</b>  This section is effective for sales and 
 58.18  purchases made after June 30, 2000. 
 58.19     Sec. 7.  Minnesota Statutes 1999 Supplement, section 
 58.20  297A.25, subdivision 11, is amended to read: 
 58.21     Subd. 11.  [SALES TO GOVERNMENT.] The gross receipts from 
 58.22  all sales, including sales in which title is retained by a 
 58.23  seller or a vendor or is assigned to a third party under an 
 58.24  installment sale or lease purchase agreement under section 
 58.25  465.71, of tangible personal property to, and all storage, use 
 58.26  or consumption of such property by, the United States and its 
 58.27  agencies and instrumentalities, the University of Minnesota, 
 58.28  state universities, community colleges, technical colleges, 
 58.29  state academies, the Perpich center for arts education, an 
 58.30  instrumentality of a political subdivision that is accredited as 
 58.31  an optional/special function school by the North Central 
 58.32  Association of Colleges and Schools, school districts, public 
 58.33  libraries, public library systems, multicounty, multitype 
 58.34  library systems as defined in section 134.001, county law 
 58.35  libraries under chapter 134A, state agency libraries, the state 
 58.36  library under section 480.09, and the legislative reference 
 59.1   library are exempt. 
 59.2      As used in this subdivision, "school districts" means 
 59.3   public school entities and districts of every kind and nature 
 59.4   organized under the laws of the state of Minnesota, including, 
 59.5   without limitation, school districts, intermediate school 
 59.6   districts, education districts, service cooperatives, secondary 
 59.7   vocational cooperative centers, special education cooperatives, 
 59.8   joint purchasing cooperatives, telecommunication cooperatives, 
 59.9   regional management information centers, and any instrumentality 
 59.10  of a school district, as defined in section 471.59. 
 59.11     Sales exempted by this subdivision include sales under 
 59.12  section 297A.01, subdivision 3, paragraph (f).  
 59.13     Sales to hospitals and nursing homes owned and operated by 
 59.14  political subdivisions of the state are exempt under this 
 59.15  subdivision.  
 59.16     Sales of supplies and equipment used in the operation of an 
 59.17  ambulance service owned and operated by a political subdivision 
 59.18  of the state are exempt under this subdivision provided that the 
 59.19  supplies and equipment are used in the course of providing 
 59.20  medical care.  Sales to a political subdivision of repair and 
 59.21  replacement parts for emergency rescue vehicles and fire trucks 
 59.22  and apparatus are exempt under this subdivision.  
 59.23     Sales to a political subdivision of machinery and 
 59.24  equipment, except for motor vehicles, used directly for mixed 
 59.25  municipal solid waste management services at a solid waste 
 59.26  disposal facility as defined in section 115A.03, subdivision 10, 
 59.27  are exempt under this subdivision.  
 59.28     Sales to political subdivisions of chore and homemaking 
 59.29  services to be provided to elderly or disabled individuals are 
 59.30  exempt. 
 59.31     Sales to a town of gravel and of machinery, equipment, and 
 59.32  accessories, except motor vehicles, used exclusively for road 
 59.33  and bridge maintenance, and leases of motor vehicles exempt from 
 59.34  tax under section 297B.03, clause (10), are exempt. 
 59.35     Sales of telephone services to the department of 
 59.36  administration that are used to provide telecommunications 
 60.1   services through the intertechnologies revolving fund are exempt 
 60.2   under this subdivision. 
 60.3      This exemption shall not apply to building, construction or 
 60.4   reconstruction materials purchased by a contractor or a 
 60.5   subcontractor as a part of a lump-sum contract or similar type 
 60.6   of contract with a guaranteed maximum price covering both labor 
 60.7   and materials for use in the construction, alteration, or repair 
 60.8   of a building or facility except for facilities the construction 
 60.9   materials of which are exempt under subdivision 65.  This 
 60.10  exemption does not apply to construction materials purchased by 
 60.11  tax exempt entities or their contractors to be used in 
 60.12  constructing buildings or facilities which will not be used 
 60.13  principally by the tax exempt entities. 
 60.14     This exemption does not apply to the leasing of a motor 
 60.15  vehicle as defined in section 297B.01, subdivision 5, except for 
 60.16  leases entered into by the United States or its agencies or 
 60.17  instrumentalities. 
 60.18     The tax imposed on sales to political subdivisions of the 
 60.19  state under this section applies to all political subdivisions 
 60.20  other than those explicitly exempted under this subdivision, 
 60.21  notwithstanding section 115A.69, subdivision 6, 116A.25, 
 60.22  360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2, 
 60.23  469.127, 473.448, 473.545, or 473.608 or any other law to the 
 60.24  contrary enacted before 1992. 
 60.25     Sales exempted by this subdivision include sales made to 
 60.26  other states or political subdivisions of other states, if the 
 60.27  sale would be exempt from taxation if it occurred in that state, 
 60.28  but do not include sales under section 297A.01, subdivision 3, 
 60.29  paragraphs (c) and (e). 
 60.30     <b>EFFECTIVE DATE:</b>  This section is effective for purchases 
 60.31  after June 30, 2000. 
 60.32     Sec. 8.  Minnesota Statutes 1998, section 297A.25, 
 60.33  subdivision 65, is amended to read: 
 60.34     Subd. 65.  [CONSTRUCTION MATERIALS FOR CORRECTIONAL 
 60.35  FACILITIES.] The gross receipts from the sale of and storage, 
 60.36  use, or consumption of construction materials and supplies are 
 61.1   exempt from the tax imposed under this chapter if purchased for 
 61.2   use in a project to construct or improve an adult or juvenile 
 61.3   correctional facility in a county, home rule charter city, or 
 61.4   statutory city, and if the project is mandated by state or 
 61.5   federal law, rule, or regulation.  Construction materials and 
 61.6   supplies used in a project to construct or improve a building 
 61.7   used in part as an adult or juvenile correctional facility are 
 61.8   exempt to the extent they are used for the correctional facility 
 61.9   and for court facilities related to the detention and 
 61.10  arraignment process.  The exemption applies regardless of 
 61.11  whether the materials and supplies are purchased by the city or 
 61.12  county, or by a contractor, subcontractor, or builder under a 
 61.13  contract with the city or county. 
 61.14     <b>EFFECTIVE DATE:</b>  This section is effective for purchases 
 61.15  after December 31, 1998. 
 61.16     Sec. 9.  Minnesota Statutes 1998, section 297A.25, is 
 61.17  amended by adding a subdivision to read: 
 61.18     Subd. 84.  [PATENT, TRADEMARK, AND COPYRIGHT DRAWINGS AND 
 61.19  DOCUMENTS.] The gross receipts from sales of, and use, storage, 
 61.20  distribution, or consumption of, drawings, diagrams, or other 
 61.21  documents or copies are exempt if they are:  (1) produced and 
 61.22  sold by patent drafters for use in patent, trademark, or 
 61.23  copyright applications to be filed with government agencies; or 
 61.24  (2) used in judicial or quasi-judicial proceedings, including 
 61.25  mediations and arbitrations. 
 61.26     <b>EFFECTIVE DATE:</b>  This section is retroactively effective 
 61.27  for sales, use, storage, distribution, or consumption occurring 
 61.28  on or after January 1, 1993. 
 61.29     Sec. 10.  Minnesota Statutes 1998, section 297A.25, is 
 61.30  amended by adding a subdivision to read: 
 61.31     Subd. 85.  [CONSTRUCTION MATERIALS FOR QUALIFIED LOW-INCOME 
 61.32  HOUSING PROJECTS.] Purchases of materials and supplies used or 
 61.33  consumed in and equipment incorporated into the construction, 
 61.34  improvement, or expansion of qualified low-income housing 
 61.35  projects are exempt from the tax imposed under this chapter if 
 61.36  the owner of the qualified low-income housing project is the 
 62.1   public housing agency or housing and redevelopment authority of 
 62.2   a political subdivision.  
 62.3      This exemption applies regardless of whether the purchases 
 62.4   are made by the owner of the facility or a contractor.  
 62.5      For purposes of this exemption, "qualified low-income 
 62.6   housing project" means: 
 62.7      (1) a housing or mixed use project in which at least 20 
 62.8   percent of the residential units meet the income requirements of 
 62.9   low-income rental housing units as defined in section 273.126; 
 62.10     (2) a federally assisted low-income housing project 
 62.11  financed by a mortgage insured or held by the United States 
 62.12  Department of Housing and Urban Development under United States 
 62.13  Code, title 12, section 1701s, 1715l(d)(3), 1715l(d)(4), or 
 62.14  1715z-1; United States Code, title 42, section 1437f; the Native 
 62.15  American Housing Assistance and Self-Determination Act, United 
 62.16  States Code, title 25, section 4101 et seq.; or any similar 
 62.17  successor federal low-income housing program; or 
 62.18     (3) a project that meets the income requirements that apply 
 62.19  to: 
 62.20     (i) a qualified low-income housing project as defined in 
 62.21  United States Code, title 26, section 42(g); or 
 62.22     (ii) a project operated in compliance with Internal Revenue 
 62.23  Service revenue procedure 96-32. 
 62.24     <b>EFFECTIVE DATE:</b>  This section is effective for sales after 
 62.25  June 30, 2000. 
 62.26     Sec. 11.  Minnesota Statutes 1998, section 297A.25, is 
 62.27  amended by adding a subdivision to read: 
 62.28     Subd. 86.  [MACHINERY AND EQUIPMENT FOR SKI AREAS.] The 
 62.29  gross receipts from the sale, storage, use, or consumption of 
 62.30  tangible personal property used or consumed primarily and 
 62.31  directly for tramways or in snowmaking or snow-grooming 
 62.32  operations at ski hills, ski slopes, or ski trails, including 
 62.33  machinery, equipment, fuel, electricity, and water additives 
 62.34  used in the production and maintenance of machine-made snow, are 
 62.35  exempt. 
 62.36     <b>EFFECTIVE DATE:</b>  This section is effective for sales after 
 63.1   June 30, 2000. 
 63.2      Sec. 12.  Laws 1995, chapter 264, article 2, section 44, as 
 63.3   amended by Laws 1996, chapter 471, article 2, section 27, and 
 63.4   Laws 1998, chapter 389, article 8, section 33, is amended to 
 63.5   read: 
 63.6      Sec. 44.  [EFFECTIVE DATE.] 
 63.7      Section 1 is effective the day following final enactment. 
 63.8      Sections 3 and 4 are effective June 1, 1995.  Section 4 is 
 63.9   repealed June 1, 2000. 
 63.10     Sections 5 to 21 and 43, paragraph (a), are effective July 
 63.11  1, 1995. 
 63.12     Sections 23, 28, 33, 40, 42, and the part of section 22 
 63.13  amending language in paragraph (i), clause (vii), are effective 
 63.14  the day following final enactment. 
 63.15     Sections 24 and 34 are effective for sales made after 
 63.16  December 31, 1996. 
 63.17     Section 25 is effective beginning with leases or rentals 
 63.18  made after June 30, 1995. 
 63.19     Section 26 is effective retroactively for sales after May 
 63.20  31, 1992. 
 63.21     Section 27 is effective for sales made after June 30, 1995. 
 63.22     Section 29 and the part of section 22 striking the language 
 63.23  after paragraph (h) are effective for sales after June 30, 1995. 
 63.24     Section 32 is effective for sales made after June 30, 1995, 
 63.25  and before July 1, 1999 2000. 
 63.26     Sections 35 and 36 are effective for sales or transfers 
 63.27  made after June 30, 1995. 
 63.28     Section 38 is effective the day after the governing body of 
 63.29  the city of Winona complies with Minnesota Statutes, section 
 63.30  645.021, subdivision 3. 
 63.31     Section 39 is effective upon compliance by the Minneapolis 
 63.32  city council with Minnesota Statutes, section 645.021, 
 63.33  subdivision 3. 
 63.34     Section 43, paragraph (b), is effective for sales of 900 
 63.35  information services made after June 30, 1995. 
 63.36     EFFECTIVE DATE:  This section is retroactively effective 
 64.1   for sales and purchases on or after July 1, 1999. 
 64.2      Sec. 13.  [LOCAL TAXES ON MOTOR VEHICLES PROHIBITED.] 
 64.3      (a) Except as provided in paragraph (b), after June 30, 
 64.4   2000, no home rule charter or statutory city, county, or other 
 64.5   political subdivision may impose a tax on the sale, transfer, or 
 64.6   use of a motor vehicle that exceeds the tax authorized under 
 64.7   section 14. 
 64.8      (b) If, on March 8, 2000, a tax was in effect in a home 
 64.9   rule charter or statutory city, county, or other political 
 64.10  subdivision that exceeded the limit imposed under section 14, 
 64.11  the rate of that tax is reduced as follows: 
 64.12     (1) for sales or transfers after December 31, 2000, and 
 64.13  before January 1, 2002, the tax rate in effect on March 8, 2000, 
 64.14  is reduced by 25 percent; 
 64.15     (2) for sales or transfers after December 31, 2001, and 
 64.16  before January 1, 2003, the tax rate in effect on March 8, 2000, 
 64.17  is reduced by 50 percent; and 
 64.18     (3) for sales or transfers after December 31, 2002, and 
 64.19  before January 1, 2004, the tax rate in effect on March 8, 2000, 
 64.20  is reduced by 75 percent. 
 64.21  For sales or transfers after December 31, 2003, the political 
 64.22  subdivision may impose no tax except as authorized under section 
 64.23  14. 
 64.24     <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2000. 
 64.25     Sec. 14.  [LOCAL EXCISE TAX ON MOTOR VEHICLES AUTHORIZED.] 
 64.26     Notwithstanding Minnesota Statutes, section 477A.016, or 
 64.27  any other provision of law, ordinance, or city charter, if a 
 64.28  sales and use tax on motor vehicles that was imposed by a 
 64.29  political subdivision is terminated under section 13, the 
 64.30  political subdivision may impose by ordinance an excise tax of 
 64.31  up to $20 per motor vehicle, as defined by ordinance, that was 
 64.32  purchased or acquired from any person engaged within the 
 64.33  territory of the political subdivision in the business of 
 64.34  selling motor vehicles at retail.  The proceeds of the tax must 
 64.35  be used for the purposes for which the tax terminated under 
 64.36  section 13 was used. 
 65.1      <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2000. 
 65.2      Sec. 15.  [DEVELOPMENT OF SALES AND USE TAX COLLECTION 
 65.3   SYSTEM.] 
 65.4      Subdivision 1.  [AUTHORIZATION TO ENTER INTO MULTISTATE 
 65.5   DISCUSSIONS.] The commissioner of revenue may enter into 
 65.6   discussions with states regarding development of a multistate, 
 65.7   voluntary, streamlined system for sales and use tax collection 
 65.8   and administration.  These discussions will focus on development 
 65.9   of a system that is capable of determining whether a transaction 
 65.10  is taxable or exempt, the appropriate tax rate applied to the 
 65.11  transaction, and the total tax due on the transaction, and shall 
 65.12  provide a method for collecting and remitting sales and use 
 65.13  taxes to the state.  The system may provide compensation for the 
 65.14  costs of collecting and remitting sales and use taxes.  
 65.15  Discussions between the department and other states may result 
 65.16  in developing and issuing a joint request for information from 
 65.17  public and private potential parties.  The commissioner must 
 65.18  publish the notices in the State Register. 
 65.19     Subd. 2.  [LIMITED TEST AUTHORIZATION.] (a) The 
 65.20  commissioner may participate in a sales tax pilot project with 
 65.21  other states and selected businesses to test a means for 
 65.22  simplifying sales and use tax administration, and may enter into 
 65.23  joint agreements for that purpose. 
 65.24     (b) Agreements to participate in the test will establish 
 65.25  provisions for the administration, imposition, and collection of 
 65.26  sales and use taxes resulting in revenues paid by the taxpayer 
 65.27  that are the same as would be paid under existing law. 
 65.28     (c) Parties to the agreements are excused from complying 
 65.29  with the provisions of Minnesota Statutes, chapters 289A and 
 65.30  297A, to the extent a different procedure is required by the 
 65.31  agreements. 
 65.32     (d) Agreements authorized under this section terminate no 
 65.33  later than December 31, 2001. 
 65.34     Subd. 3.  [DISCLOSURE.] Any agreements entered into under 
 65.35  subdivision 1 or 2 are subject to the provisions of Minnesota 
 65.36  Statutes, chapter 270B. 
 66.1      Subd. 4.  [REPORT ON PROJECT.] By March 1, 2002, the 
 66.2   commissioner shall report to the chairs of the house of 
 66.3   representatives tax committee and the senate committee on 
 66.4   taxes.  The report must describe the status of multistate 
 66.5   discussions conducted under subdivision 1 and, if a proposed 
 66.6   system has been agreed upon by participating states, must also 
 66.7   recommend whether the state should participate in the system. 
 66.8      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 66.9   following final enactment. 
 66.10     Sec. 16.  [REPEALER.] 
 66.11     Minnesota Statutes 1998, section 297A.15, subdivision 7, is 
 66.12  repealed. 
 66.13                             ARTICLE 8
 66.14                           SPECIAL TAXES
 66.15     Section 1.  Minnesota Statutes 1998, section 60A.15, 
 66.16  subdivision 1, is amended to read: 
 66.17     Subdivision 1.  [DOMESTIC AND FOREIGN COMPANIES.] (a) On or 
 66.18  before April 1, June 1, and December 1 of each year, every 
 66.19  domestic and foreign company, including town and farmers' mutual 
 66.20  insurance companies, domestic mutual insurance companies, marine 
 66.21  insurance companies, health maintenance organizations, community 
 66.22  integrated service networks, and nonprofit health service plan 
 66.23  corporations, shall pay to the commissioner of revenue 
 66.24  installments equal to one-third of the insurer's total estimated 
 66.25  tax for the current year.  Except as provided in paragraphs (d), 
 66.26  (e), (h), and (i), installments must be based on a sum equal to 
 66.27  two percent of the premiums described in paragraph (b). 
 66.28     (b) Installments under paragraph (a), (d), or (e) are 
 66.29  percentages of gross premiums less return premiums on all direct 
 66.30  business received by the insurer in this state, or by its agents 
 66.31  for it, in cash or otherwise, during such year. 
 66.32     (c) Failure of a company to make payments of at least 
 66.33  one-third of either (1) the total tax paid during the previous 
 66.34  calendar year or (2) 80 percent of the actual tax for the 
 66.35  current calendar year shall subject the company to the penalty 
 66.36  and interest provided in this section, unless the total tax for 
 67.1   the current tax year is $500 or less. 
 67.2      (d) For health maintenance organizations, nonprofit health 
 67.3   service plan corporations, and community integrated service 
 67.4   networks, the installments must be based on an amount determined 
 67.5   under paragraph (h) or (i). 
 67.6      (e) For purposes of computing installments for town and 
 67.7   farmers' mutual insurance companies and for mutual property 
 67.8   casualty companies with total assets on December 31, 1989, of 
 67.9   $1,600,000,000 or less, the following rates apply: 
 67.10     (1) for all life insurance, two percent; 
 67.11     (2) for town and farmers' mutual insurance companies and 
 67.12  for mutual property and casualty companies with total assets of 
 67.13  $5,000,000 or less, on all other coverages, one percent; and 
 67.14     (3) for mutual property and casualty companies with total 
 67.15  assets on December 31, 1989, of $1,600,000,000 or less, on all 
 67.16  other coverages, 1.26 percent. 
 67.17     (f) If the aggregate amount of premium tax payments under 
 67.18  this section and the fire marshal tax payments under section 
 67.19  299F.21 made during a calendar year is equal to or exceeds 
 67.20  $120,000, all tax payments in the subsequent calendar year must 
 67.21  be paid by means of a funds transfer as defined in section 
 67.22  336.4A-104, paragraph (a).  The funds transfer payment date, as 
 67.23  defined in section 336.4A-401, must be on or before the date the 
 67.24  payment is due.  If the date the payment is due is not a funds 
 67.25  transfer business day, as defined in section 336.4A-105, 
 67.26  paragraph (a), clause (4), the payment date must be on or before 
 67.27  the funds transfer business day next following the date the 
 67.28  payment is due.  
 67.29     (g) Premiums under medical assistance, general assistance 
 67.30  medical care, the MinnesotaCare program, and the Minnesota 
 67.31  comprehensive health insurance plan and all payments, revenues, 
 67.32  and reimbursements received from the federal government for 
 67.33  Medicare-related coverage as defined in section 62A.31, 
 67.34  subdivision 3, paragraph (e), are not subject to tax under this 
 67.35  section. 
 67.36     (h) For calendar years 1997, 1998, and 1999, the 
 68.1   installments for health maintenance organizations, community 
 68.2   integrated service networks, and nonprofit health service plan 
 68.3   corporations must be based on an amount equal to one percent of 
 68.4   premiums described under paragraph (b).  Health maintenance 
 68.5   organizations, community integrated service networks, and 
 68.6   nonprofit health service plan corporations that have met the 
 68.7   cost containment goals established under section 62J.04 in the 
 68.8   individual and small employer market for calendar year 1996 are 
 68.9   exempt from payment of the tax imposed under this section for 
 68.10  premiums paid after March 30, 1997, and before April 1, 1998.  
 68.11  Health maintenance organizations, community integrated service 
 68.12  networks, and nonprofit health service plan corporations that 
 68.13  have met the cost containment goals established under section 
 68.14  62J.04 in the individual and small employer market for calendar 
 68.15  year 1997 are exempt from payment of the tax imposed under this 
 68.16  section for premiums paid after March 30, 1998, and before April 
 68.17  1, 1999.  Health maintenance organizations, community integrated 
 68.18  service networks, and nonprofit health service plan corporations 
 68.19  that have met the cost containment goals established under 
 68.20  section 62J.04 in the individual and small employer market for 
 68.21  calendar year 1998 are exempt from payment of the tax imposed 
 68.22  under this section for premiums paid after March 30, 1999, and 
 68.23  before January 1, 2000.  
 68.24     (i) Health maintenance organizations, community integrated 
 68.25  service networks, and nonprofit health service plan corporations 
 68.26  are exempt from the tax imposed under this section on premiums 
 68.27  received in calendar years 2000 and 2001. 
 68.28     (i) For calendar years after 1999, The commissioner of 
 68.29  finance shall determine the balance of the health care access 
 68.30  fund on September 1 of each year beginning September 1, 1999 
 68.31  2000.  If the commissioner determines that there is no 
 68.32  structural deficit for the next fiscal year, no tax shall be 
 68.33  imposed under paragraph (d) for the following calendar year 
 68.34  beginning six months after the fiscal year has begun.  If the 
 68.35  commissioner determines that there will be a structural deficit 
 68.36  in the fund for the following fiscal year, then the 
 69.1   commissioner, in consultation with the commissioner of revenue, 
 69.2   shall determine the amount needed to eliminate the structural 
 69.3   deficit and a tax shall be imposed under paragraph (d) for the 
 69.4   following calendar year beginning six months after that fiscal 
 69.5   year has begun.  The commissioner shall determine the rate of 
 69.6   the tax as either one-quarter of one percent, one-half of one 
 69.7   percent, three-quarters of one percent, or one percent of 
 69.8   premiums described in paragraph (b), whichever is the lowest of 
 69.9   those rates that the commissioner determines will produce 
 69.10  sufficient revenue to eliminate the projected structural 
 69.11  deficit.  The commissioner of finance shall publish in the State 
 69.12  Register by October 1 of each year the amount of tax to be 
 69.13  imposed for the following calendar year.  In determining the 
 69.14  structural balance of the health care access fund for fiscal 
 69.15  years 2000 and 2001, the commissioner shall disregard the 
 69.16  transfer amount from the health care access fund to the general 
 69.17  fund for expenditures associated with the services provided to 
 69.18  pregnant women and children under the age of two enrolled in the 
 69.19  MinnesotaCare program.  
 69.20     (j) In approving the premium rates as required in sections 
 69.21  62L.08, subdivision 8, and 62A.65, subdivision 3, the 
 69.22  commissioners of health and commerce shall ensure that any 
 69.23  exemption from the tax as described in paragraphs (h) and (i) is 
 69.24  reflected in the premium rate. 
 69.25     <b>EFFECTIVE DATE:</b>  This section is effective for taxes on 
 69.26  premiums received after December 31, 1999. 
 69.27     Sec. 2.  Minnesota Statutes 1998, section 295.50, 
 69.28  subdivision 9b, is amended to read: 
 69.29     Subd. 9b.  [PATIENT SERVICES.] (a) "Patient services" means 
 69.30  inpatient and outpatient services and other goods and services 
 69.31  provided by hospitals, surgical centers, or health care 
 69.32  providers.  They include the following health care goods and 
 69.33  services provided to a patient or consumer: 
 69.34     (1) bed and board; 
 69.35     (2) nursing services and other related services; 
 69.36     (3) use of hospitals, surgical centers, or health care 
 70.1   provider facilities; 
 70.2      (4) medical social services; 
 70.3      (5) drugs, biologicals, supplies, appliances, and 
 70.4   equipment; 
 70.5      (6) other diagnostic or therapeutic items or services; 
 70.6      (7) medical or surgical services; 
 70.7      (8) items and services furnished to ambulatory patients not 
 70.8   requiring emergency care; 
 70.9      (9) emergency services; and 
 70.10     (10) covered services listed in section 256B.0625 and in 
 70.11  Minnesota Rules, parts 9505.0170 to 9505.0475. 
 70.12     (b) "Patient services" does not include:  
 70.13     (1) services provided to nursing homes licensed under 
 70.14  chapter 144A; and 
 70.15     (2) examinations for purposes of utilization reviews, 
 70.16  insurance claims or eligibility, litigation, and employment, 
 70.17  including reviews of medical records for those purposes. 
 70.18     <b>EFFECTIVE DATE:</b>  This section is effective for payments 
 70.19  received on or after January 1, 2000. 
 70.20     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 70.21  295.53, subdivision 1, is amended to read: 
 70.22     Subdivision 1.  [EXEMPTIONS.] (a) The following payments 
 70.23  are excluded from the gross revenues subject to the hospital, 
 70.24  surgical center, or health care provider taxes under sections 
 70.25  295.50 to 295.57: 
 70.26     (1) payments received for services provided under the 
 70.27  Medicare program, including payments received from the 
 70.28  government, and organizations governed by sections 1833 and 1876 
 70.29  of title XVIII of the federal Social Security Act, United States 
 70.30  Code, title 42, section 1395, and enrollee deductibles, 
 70.31  coinsurance, and copayments, whether paid by the Medicare 
 70.32  enrollee or by a Medicare supplemental coverage as defined in 
 70.33  section 62A.011, subdivision 3, clause (10).  Payments for 
 70.34  services not covered by Medicare are taxable; 
 70.35     (2) medical assistance payments including payments received 
 70.36  directly from the government or from a prepaid plan; 
 71.1      (3) payments received for home health care services; 
 71.2      (4) payments received from hospitals or surgical centers 
 71.3   for goods and services on which liability for tax is imposed 
 71.4   under section 295.52 or the source of funds for the payment is 
 71.5   exempt under clause (1), (2), (7), (8), (10), or (13), or (20); 
 71.6      (5) payments received from health care providers for goods 
 71.7   and services on which liability for tax is imposed under this 
 71.8   chapter or the source of funds for the payment is exempt under 
 71.9   clause (1), (2), (7), (8), (10), or (13), or (20); 
 71.10     (6) amounts paid for legend drugs, other than nutritional 
 71.11  products, to a wholesale drug distributor who is subject to tax 
 71.12  under section 295.52, subdivision 3, reduced by reimbursements 
 71.13  received for legend drugs under clauses (1), (2), (7), and (8); 
 71.14     (7) payments received under the general assistance medical 
 71.15  care program including payments received directly from the 
 71.16  government or from a prepaid plan; 
 71.17     (8) payments received for providing services under the 
 71.18  MinnesotaCare program including payments received directly from 
 71.19  the government or from a prepaid plan and enrollee deductibles, 
 71.20  coinsurance, and copayments.  For purposes of this clause, 
 71.21  coinsurance means the portion of payment that the enrollee is 
 71.22  required to pay for the covered service; 
 71.23     (9) payments received by a health care provider or the 
 71.24  wholly owned subsidiary of a health care provider for care 
 71.25  provided outside Minnesota; 
 71.26     (10) payments received from the chemical dependency fund 
 71.27  under chapter 254B; 
 71.28     (11) payments received in the nature of charitable 
 71.29  donations that are not designated for providing patient services 
 71.30  to a specific individual or group; 
 71.31     (12) payments received for providing patient services 
 71.32  incurred through a formal program of health care research 
 71.33  conducted in conformity with federal regulations governing 
 71.34  research on human subjects.  Payments received from patients or 
 71.35  from other persons paying on behalf of the patients are subject 
 71.36  to tax; 
 72.1      (13) payments received from any governmental agency for 
 72.2   services benefiting the public, not including payments made by 
 72.3   the government in its capacity as an employer or insurer; 
 72.4      (14) payments received for services provided by community 
 72.5   residential mental health facilities licensed under Minnesota 
 72.6   Rules, parts 9520.0500 to 9520.0690, community support programs 
 72.7   and family community support programs approved under Minnesota 
 72.8   Rules, parts 9535.1700 to 9535.1760, and community mental health 
 72.9   centers as defined in section 245.62, subdivision 2; 
 72.10     (15) government payments received by a regional treatment 
 72.11  center; 
 72.12     (16) payments received for hospice care services; 
 72.13     (17) payments received by a health care provider for 
 72.14  hearing aids and related equipment or prescription eyewear 
 72.15  delivered outside of Minnesota; 
 72.16     (18) payments received by an educational institution from 
 72.17  student tuition, student activity fees, health care service 
 72.18  fees, government appropriations, donations, or grants.  Fee for 
 72.19  service payments and payments for extended coverage are taxable; 
 72.20     (19) payments received for services provided by:  assisted 
 72.21  living programs and congregate housing programs; and 
 72.22     (20) payments received from nursing homes licensed under 
 72.23  chapter 144A for services provided to a nursing home; and 
 72.24     (21) payments received for examinations for purposes of 
 72.25  utilization reviews, insurance claims or eligibility, 
 72.26  litigation, and employment, including reviews of medical records 
 72.27  for those purposes. 
 72.28     (20) payments received under the federal Employees Health 
 72.29  Benefits Act, United States Code, title 5, section 8909(f), as 
 72.30  amended by the Omnibus Reconciliation Act of 1990. 
 72.31     (b) Payments received by wholesale drug distributors for 
 72.32  legend drugs sold directly to veterinarians or veterinary bulk 
 72.33  purchasing organizations are excluded from the gross revenues 
 72.34  subject to the wholesale drug distributor tax under sections 
 72.35  295.50 to 295.59. 
 72.36     <b>EFFECTIVE DATE:</b>  This section is effective for payments 
 73.1   received on or after January 1, 2000. 
 73.2      Sec. 4.  Minnesota Statutes 1999 Supplement, section 
 73.3   297E.02, subdivision 1, is amended to read: 
 73.4      Subdivision 1.  [IMPOSITION.] A tax is imposed on all 
 73.5   lawful gambling other than (1) pull-tab deals or games; (2) 
 73.6   tipboard deals or games; and (3) items listed in section 
 73.7   297E.01, subdivision 8, clauses (4) and (5), at the rate of 9 
 73.8   8.75 percent on the gross receipts as defined in section 
 73.9   297E.01, subdivision 8, less prizes actually paid.  The tax 
 73.10  imposed by this subdivision is in lieu of the tax imposed by 
 73.11  section 297A.02 and all local taxes and license fees except a 
 73.12  fee authorized under section 349.16, subdivision 8, or a tax 
 73.13  authorized under subdivision 5.  
 73.14     The tax imposed under this subdivision is payable by the 
 73.15  organization or party conducting, directly or indirectly, the 
 73.16  gambling.  
 73.17     <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2000. 
 73.18     Sec. 5.  Minnesota Statutes 1999 Supplement, section 
 73.19  297E.02, subdivision 4, is amended to read: 
 73.20     Subd. 4.  [PULL-TAB AND TIPBOARD TAX.] (a) A tax is imposed 
 73.21  on the sale of each deal of pull-tabs and tipboards sold by a 
 73.22  distributor.  The rate of the tax is 1.8 1.75 percent of the 
 73.23  ideal gross of the pull-tab or tipboard deal.  The sales tax 
 73.24  imposed by chapter 297A on the sale of the pull-tabs and 
 73.25  tipboards by the distributor is imposed on the retail sales 
 73.26  price less the tax imposed by this subdivision.  The retail sale 
 73.27  of pull-tabs or tipboards by the organization is exempt from 
 73.28  taxes imposed by chapter 297A and is exempt from all local taxes 
 73.29  and license fees except a fee authorized under section 349.16, 
 73.30  subdivision 8.  
 73.31     (b) The liability for the tax imposed by this section is 
 73.32  incurred when the pull-tabs and tipboards are delivered by the 
 73.33  distributor to the customer or to a common or contract carrier 
 73.34  for delivery to the customer, or when received by the customer's 
 73.35  authorized representative at the distributor's place of 
 73.36  business, regardless of the distributor's method of accounting 
 74.1   or the terms of the sale.  
 74.2      The tax imposed by this subdivision is imposed on all sales 
 74.3   of pull-tabs and tipboards, except the following:  
 74.4      (1) sales to the governing body of an Indian tribal 
 74.5   organization for use on an Indian reservation; 
 74.6      (2) sales to distributors licensed under the laws of 
 74.7   another state or of a province of Canada, as long as all 
 74.8   statutory and regulatory requirements are met in the other state 
 74.9   or province; 
 74.10     (3) sales of promotional tickets as defined in section 
 74.11  349.12; and 
 74.12     (4) pull-tabs and tipboards sold to an organization that 
 74.13  sells pull-tabs and tipboards under the exemption from licensing 
 74.14  in section 349.166, subdivision 2.  A distributor shall require 
 74.15  an organization conducting exempt gambling to show proof of its 
 74.16  exempt status before making a tax-exempt sale of pull-tabs or 
 74.17  tipboards to the organization.  A distributor shall identify, on 
 74.18  all reports submitted to the commissioner, all sales of 
 74.19  pull-tabs and tipboards that are exempt from tax under this 
 74.20  subdivision.  
 74.21     (c) A distributor having a liability of $120,000 or more 
 74.22  during a fiscal year ending June 30 must remit all liabilities 
 74.23  in the subsequent calendar year by a funds transfer as defined 
 74.24  in section 336.4A-104, paragraph (a).  The funds transfer 
 74.25  payment date, as defined in section 336.4A-401, must be on or 
 74.26  before the date the tax is due.  If the date the tax is due is 
 74.27  not a funds transfer business day, as defined in section 
 74.28  336.4A-105, paragraph (a), clause (4), the payment date must be 
 74.29  on or before the funds transfer business day next following the 
 74.30  date the tax is due. 
 74.31     (d) Any customer who purchases deals of pull-tabs or 
 74.32  tipboards from a distributor may file an annual claim for a 
 74.33  refund or credit of taxes paid pursuant to this subdivision for 
 74.34  unsold pull-tab and tipboard tickets.  The claim must be filed 
 74.35  with the commissioner on a form prescribed by the commissioner 
 74.36  by March 20 of the year following the calendar year for which 
 75.1   the refund is claimed.  The refund must be filed as part of the 
 75.2   customer's February monthly return.  The refund or credit is 
 75.3   equal to 1.8 1.75 percent of the face value of the unsold 
 75.4   pull-tab or tipboard tickets, provided that the refund or credit 
 75.5   will be 1.85 1.775 percent of the face value of the unsold 
 75.6   pull-tab or tipboard tickets for claims for a refund or credit 
 75.7   of taxes filed on the February 2000 2001 monthly return.  The 
 75.8   refund claimed will be applied as a credit against tax owing 
 75.9   under this chapter on the February monthly return.  If the 
 75.10  refund claimed exceeds the tax owing on the February monthly 
 75.11  return, that amount will be refunded.  The amount refunded will 
 75.12  bear interest pursuant to section 270.76 from 90 days after the 
 75.13  claim is filed.  
 75.14     <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2000. 
 75.15     Sec. 6.  Minnesota Statutes 1999 Supplement, section 
 75.16  297E.02, subdivision 6, is amended to read: 
 75.17     Subd. 6.  [COMBINED RECEIPTS TAX.] In addition to the taxes 
 75.18  imposed under subdivisions 1 and 4, a tax is imposed on the 
 75.19  combined receipts of the organization.  As used in this section, 
 75.20  "combined receipts" is the sum of the organization's gross 
 75.21  receipts from lawful gambling less gross receipts directly 
 75.22  derived from the conduct of bingo, raffles, and paddlewheels, as 
 75.23  defined in section 297E.01, subdivision 8, for the fiscal year.  
 75.24  The combined receipts of an organization are subject to a tax 
 75.25  computed according to the following schedule: 
 75.26     If the combined receipts for the          The tax is:
 75.27     fiscal year are:
 75.28     Not over $500,000                   zero
 75.29     Over $500,000, but not over
 75.30     $700,000                            1.8 1.75 percent of the 
 75.31                                         amount over $500,000, but 
 75.32                                         not over $700,000
 75.33     Over $700,000, but not over
 75.34     $900,000                            $3,600 $3,500 plus 3.6 
 75.35                                         3.5 percent of the amount 
 75.36                                         over $700,000, but 
 76.1                                          not over $900,000
 76.2      Over $900,000                       $10,800 $10,500 plus 5.4 
 76.3                                          5.25 percent of the 
 76.4                                          amount over $900,000
 76.5      <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2000. 
 76.6      Sec. 7.  Minnesota Statutes 1998, section 297F.01, 
 76.7   subdivision 17, is amended to read: 
 76.8      Subd. 17.  [STAMP.] "Stamp" means the adhesive stamp 
 76.9   supplied by the commissioner of revenue for use on cigarette 
 76.10  packages or any other indicia adopted by the commissioner to 
 76.11  indicate that the tax has been paid. 
 76.12     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 76.13  following final enactment. 
 76.14     Sec. 8.  Minnesota Statutes 1998, section 297F.08, 
 76.15  subdivision 2, is amended to read: 
 76.16     Subd. 2.  [TAX DUE; CIGARETTES.] Notwithstanding any other 
 76.17  provisions of this chapter, the tax due on the return is based 
 76.18  upon actual heat-applied stamps purchased during the reporting 
 76.19  period. 
 76.20     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 76.21  following final enactment. 
 76.22     Sec. 9.  Minnesota Statutes 1998, section 297F.08, 
 76.23  subdivision 4, is amended to read: 
 76.24     Subd. 4.  [STAMPS; DESIGN, PRINTING.] The commissioner 
 76.25  shall adopt the design of two stamps.  One stamp must be 
 76.26  designed for application to cigarette packages destined for 
 76.27  retail sale on an Indian reservation which is a party to an 
 76.28  agreement under section 270.60, subdivision 2, and only to those 
 76.29  packages.  A second stamp must be designed for all other 
 76.30  cigarette packages subject to the provisions of this chapter.  
 76.31  The commissioner shall arrange for the printing of stamps in 
 76.32  such amounts and denominations as the commissioner deems 
 76.33  necessary.  All stamps prescribed by the commissioner shall be 
 76.34  designed and furnished so as to permit identification of the 
 76.35  distributor that affixed the stamp to the particular package of 
 76.36  cigarettes, by means of a serial number or other mark on the 
 77.1   stamp.  The commissioner shall maintain for not less than three 
 77.2   years information identifying which distributor affixed the tax 
 77.3   stamp to each package of cigarettes, which information shall not 
 77.4   be confidential or exempt from disclosure to the public. 
 77.5      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 77.6   following final enactment. 
 77.7      Sec. 10.  Minnesota Statutes 1998, section 297F.08, 
 77.8   subdivision 5, is amended to read: 
 77.9      Subd. 5.  [DEPOSIT OF PROCEEDS.] The commissioner shall use 
 77.10  the amounts appropriated by law to purchase heat-applied stamps 
 77.11  for resale.  The commissioner shall charge the purchasers for 
 77.12  the costs of the stamps along with the tax value plus shipping 
 77.13  costs.  The costs recovered along with shipping costs must be 
 77.14  deposited into the general fund. 
 77.15     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 77.16  following final enactment. 
 77.17     Sec. 11.  Minnesota Statutes 1998, section 297F.08, 
 77.18  subdivision 8, is amended to read: 
 77.19     Subd. 8.  [SALE OF STAMPS.] The commissioner may sell 
 77.20  heat-applied stamps on a credit basis under conditions 
 77.21  prescribed by the commissioner.  The commissioner shall sell the 
 77.22  stamps at a price which includes the tax after giving effect to 
 77.23  the discount provided in subdivision 7.  The commissioner shall 
 77.24  recover the actual costs of the stamps from the distributor.  
 77.25  The commissioner shall annually establish the maximum amount of 
 77.26  heat-applied stamps that may be purchased each month. 
 77.27     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 77.28  following final enactment. 
 77.29     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
 77.30  297F.08, subdivision 8a, is amended to read: 
 77.31     Subd. 8a.  [REVOLVING ACCOUNT.] A heat-applied cigarette 
 77.32  tax stamp revolving account is created.  The commissioner shall 
 77.33  use the amounts in this fund to purchase heat-applied stamps for 
 77.34  resale.  The commissioner shall charge distributors for the tax 
 77.35  value of the stamps they receive along with the commissioner's 
 77.36  cost to purchase the stamps and ship them to the distributor.  
 78.1   The stamp purchase and shipping costs recovered must be credited 
 78.2   to the revolving account and are appropriated to the 
 78.3   commissioner for the further purchases and shipping costs.  The 
 78.4   revolving account is initially funded by a $40,000 transfer from 
 78.5   the department of revenue. 
 78.6      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 78.7   following final enactment. 
 78.8      Sec. 13.  Minnesota Statutes 1998, section 297F.08, 
 78.9   subdivision 9, is amended to read: 
 78.10     Subd. 9.  [TAX STAMPING MACHINES.] The commissioner shall 
 78.11  require any person licensed as a distributor to stamp packages 
 78.12  with a heat-applied tax stamping machine, approved by the 
 78.13  commissioner, which shall be provided by the distributor.  The 
 78.14  commissioner shall also supervise and check the operation of the 
 78.15  machines and shall provide for the payment of the tax on any 
 78.16  package so stamped, subject to the discount provided in 
 78.17  subdivision 7.  If the commissioner finds that a stamping 
 78.18  machine is not affixing a legible stamp on the package, the 
 78.19  commissioner may order the distributor to immediately cease the 
 78.20  stamping process until the machine is functioning properly. 
 78.21     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 78.22  following final enactment. 
 78.23     Sec. 14.  [297F.085] [CIGARETTE ENFORCEMENT.] 
 78.24     Subdivision 1.  [PROHIBITIONS.] (a) It is unlawful for any 
 78.25  person to sell or distribute in this state; to acquire, hold, 
 78.26  own, possess, or transport, for sale or distribution in this 
 78.27  state; or to import, or cause to be imported, into this state 
 78.28  for sale or distribution in this state, any cigarettes: 
 78.29     (1) the package of which: 
 78.30     (i) bears any statement, label, stamp, sticker, or notice 
 78.31  indicating that the manufacturer did not intend the cigarettes 
 78.32  to be sold, distributed, or used in the United States, 
 78.33  including, but not limited to, labels stating "For Export Only," 
 78.34  "U.S. Tax-Exempt," "For Use Outside U.S.," or similar wording; 
 78.35  or 
 78.36     (ii) does not comply with all requirements imposed by or 
 79.1   pursuant to federal law regarding warnings and other information 
 79.2   on packages of cigarettes manufactured, packaged, or imported 
 79.3   for sale, distribution, or use in the United States, including, 
 79.4   but not limited to, the precise warning labels specified in the 
 79.5   federal Cigarette Labeling and Advertising Act, United States 
 79.6   Code, title 15, section 1333; 
 79.7      (2) imported into the United States in violation of United 
 79.8   States Code, title 26, section 5754, or any other federal law or 
 79.9   regulation; 
 79.10     (3) that the person otherwise knows or has reason to know 
 79.11  the manufacturer did not intend to be sold, distributed, or used 
 79.12  in the United States; or 
 79.13     (4) for which there has not been submitted to the secretary 
 79.14  of the United States Department of Health and Human Services the 
 79.15  list or lists of the ingredients added to tobacco in the 
 79.16  manufacture of the cigarettes required by the federal Cigarette 
 79.17  Labeling and Advertising Act, United States Code, title 15, 
 79.18  section 1335a. 
 79.19     (b) It is unlawful for any person to alter the package of 
 79.20  any cigarettes, prior to sale or distribution to the ultimate 
 79.21  consumer, so as to remove, conceal, or obscure: 
 79.22     (1) any statement, label, stamp, sticker, or notice 
 79.23  described in paragraph (a), clause (1), item (i); or 
 79.24     (2) any health warning that is not specified in, or does 
 79.25  not conform with the requirements of the federal Cigarette 
 79.26  Labeling and Advertising Act, United States Code, title 15, 
 79.27  section 1333. 
 79.28  It is unlawful for any person to affix any stamp required under 
 79.29  this chapter to the package of any cigarettes described in 
 79.30  paragraph (a) or altered in violation of paragraph (b). 
 79.31     Subd. 2.  [ENFORCEMENT.] (a) The commissioner may revoke or 
 79.32  suspend the license or licenses of any distributor or subjobber 
 79.33  for a violation of subdivision 1 or any implementing rule 
 79.34  promulgated by the commissioner pursuant to the procedures set 
 79.35  forth in section 297F.04. 
 79.36     (b) A municipal or county authority that has licensed a 
 80.1   retailer under section 461.12, subdivision 1, may impose 
 80.2   administrative sanctions for violations of subdivision 1, 
 80.3   including suspending or revoking the retailer's license, 
 80.4   pursuant to the procedures in section 461.12, subdivision 7. 
 80.5      (c) Cigarettes acquired, held, owned, possessed, 
 80.6   transported in, imported into, or sold or distributed in this 
 80.7   state in violation of subdivision 1 shall be deemed contraband 
 80.8   under section 297F.21, and are subject to seizure and forfeiture 
 80.9   as provided therein; provided, however, that all such cigarettes 
 80.10  so seized and forfeited shall be destroyed.  Such cigarettes 
 80.11  shall be deemed contraband whether or not the violation of 
 80.12  subdivision 1 is knowing. 
 80.13     (d) In addition to any other remedy provided by law, any 
 80.14  person that sustains economic damages or commercial injury as a 
 80.15  result of any violation of subdivision 1 may bring an action for 
 80.16  appropriate injunctive or other equitable relief, actual 
 80.17  damages, if any, sustained by reason of the violation, and, as 
 80.18  determined by the court, interest on the damages from the date 
 80.19  of the complaint, taxable costs, and reasonable attorney fees.  
 80.20  If the trier of fact finds that the violation is egregious, it 
 80.21  may increase recovery to an amount not in excess of three times 
 80.22  the actual damages sustained by reason of the violation. 
 80.23     Subd. 3.  [UNFAIR TRADE PRACTICES.] A violation of 
 80.24  subdivision 1 constitutes an unlawful trade practice as provided 
 80.25  in section 325D.13, and, in addition to any remedies or 
 80.26  penalties set forth in this section, is subject to any remedies 
 80.27  or penalties available for a violation of that section. 
 80.28     Subd. 4.  [UNFAIR CIGARETTE SALES.] For purposes of 
 80.29  sections 325D.30 to 325D.42, cigarettes imported or reimported 
 80.30  into the United States for sale or distribution under any trade 
 80.31  name, trade dress, or trademark that is the same as, or is 
 80.32  confusingly similar to, any trade name, trade dress, or 
 80.33  trademark used for cigarettes manufactured in the United States 
 80.34  for sale or distribution in the United States are presumed to 
 80.35  have been purchased outside of the ordinary channels of trade. 
 80.36     Subd. 5.  [APPLICABILITY.] This section does not apply to 
 81.1   cigarettes imported or reimported into the United States for 
 81.2   personal use and cigarettes sold or intended to be sold as 
 81.3   duty-free merchandise by a duty-free sales enterprise in 
 81.4   accordance with the provisions of United States Code, title 19, 
 81.5   section 1555(b), and any implementing regulations; provided, 
 81.6   however, that this section shall apply to any such cigarettes 
 81.7   that are brought back into the customs territory for resale 
 81.8   within the customs territory. 
 81.9      Subd. 6.  [VIOLATION.] A violation of this section is a 
 81.10  misdemeanor. 
 81.11     Sec. 15.  Minnesota Statutes 1998, section 297F.21, 
 81.12  subdivision 1, is amended to read: 
 81.13     Subdivision 1.  [CONTRABAND DEFINED.] The following are 
 81.14  declared to be contraband and therefore subject to civil and 
 81.15  criminal penalties under this chapter: 
 81.16     (a) Cigarette packages which do not have stamps affixed to 
 81.17  them as provided in this chapter, including but not limited to 
 81.18  (i) packages with illegible stamps and packages with stamps that 
 81.19  are not complete or whole even if the stamps are legible, and 
 81.20  (ii) all devices for the vending of cigarettes in which packages 
 81.21  as defined in item (i) are found, including all contents 
 81.22  contained within the devices. 
 81.23     (b) A device for the vending of cigarettes and all packages 
 81.24  of cigarettes, where the device does not afford at least partial 
 81.25  visibility of contents.  Where any package exposed to view does 
 81.26  not carry the stamp required by this chapter, it shall be 
 81.27  presumed that all packages contained in the device are unstamped 
 81.28  and contraband. 
 81.29     (c) A device for the vending of cigarettes to which the 
 81.30  commissioner or authorized agents have been denied access for 
 81.31  the inspection of contents.  In lieu of seizure, the 
 81.32  commissioner or an agent may seal the device to prevent its use 
 81.33  until inspection of contents is permitted. 
 81.34     (d) A device for the vending of cigarettes which does not 
 81.35  carry the name and address of the owner, plainly marked and 
 81.36  visible from the front of the machine. 
 82.1      (e) A device including, but not limited to, motor vehicles, 
 82.2   trailers, snowmobiles, airplanes, and boats used with the 
 82.3   knowledge of the owner or of a person operating with the consent 
 82.4   of the owner for the storage or transportation of more than 
 82.5   5,000 cigarettes which are contraband under this subdivision.  
 82.6   When cigarettes are being transported in the course of 
 82.7   interstate commerce, or are in movement from either a public 
 82.8   warehouse to a distributor upon orders from a manufacturer or 
 82.9   distributor, or from one distributor to another, the cigarettes 
 82.10  are not contraband, notwithstanding the provisions of clause (a).
 82.11     (f) Cigarette packages or tobacco products obtained from an 
 82.12  unlicensed seller. 
 82.13     (g) Cigarette packages offered for sale or held as 
 82.14  inventory in violation of section 297F.20, subdivision 7. 
 82.15     (h) Tobacco products on which the tax has not been paid by 
 82.16  a licensed distributor. 
 82.17     (i) Any cigarette packages or tobacco products offered for 
 82.18  sale or held as inventory for which there is not an invoice from 
 82.19  a licensed seller as required under section 297F.13, subdivision 
 82.20  4.  
 82.21     (j) Cigarette packages which have been imported into the 
 82.22  United States in violation of United States Code, title 26, 
 82.23  section 5754.  All cigarettes held in violation of that section 
 82.24  shall be presumed to have entered the United States after 
 82.25  December 31, 1999, in the absence of proof to the contrary. 
 82.26     <b>EFFECTIVE DATE:</b>  This section, paragraph (i), is effective 
 82.27  July 1, 2000, and this section, paragraph (j), is effective the 
 82.28  day following final enactment. 
 82.29     Sec. 16.  Minnesota Statutes 1998, section 297F.21, 
 82.30  subdivision 3, is amended to read: 
 82.31     Subd. 3.  [INVENTORY; JUDICIAL DETERMINATION; APPEAL; 
 82.32  DISPOSITION OF SEIZED PROPERTY.] (a) Within ten days after the 
 82.33  seizure of any alleged contraband, the person making the seizure 
 82.34  shall make available an inventory of the property seized to the 
 82.35  person from whom the seizure was made, if known, and file a copy 
 82.36  with the commissioner.  Within ten days after the date of 
 83.1   service of the inventory, the person from whom the property was 
 83.2   seized or any person claiming an interest in the property may 
 83.3   file with the commissioner a demand for a judicial determination 
 83.4   of the question as to whether the property was lawfully subject 
 83.5   to seizure and forfeiture.  The commissioner, within 60 days, 
 83.6   shall institute an action in the district court of the county 
 83.7   where the seizure was made to determine the issue of 
 83.8   forfeiture.  The court shall decide whether the alleged 
 83.9   contraband is contraband, as defined in subdivision 1. 
 83.10     (b) The action must be brought in the name of the state and 
 83.11  must be prosecuted by the county attorney or by the attorney 
 83.12  general.  The court shall hear the action without a jury and 
 83.13  shall try and determine the issues of fact and law involved. 
 83.14     (c) When a judgment of forfeiture is entered, the 
 83.15  commissioner may, unless the judgment is stayed pending an 
 83.16  appeal, either: 
 83.17     (1) deliver the forfeited property to the commissioner of 
 83.18  human services for use by patients in state institutions; 
 83.19     (2) cause it to be destroyed; or 
 83.20     (3) cause it to be sold at public auction as provided by 
 83.21  law. 
 83.22     (d) If a demand for judicial determination is made and no 
 83.23  action commenced as provided in this subdivision, the property 
 83.24  must be released by the commissioner and returned to the person 
 83.25  entitled to it.  If no demand is made, the property seized is 
 83.26  considered forfeited to the state by operation of law and may be 
 83.27  disposed of by the commissioner as provided in the case of a 
 83.28  judgment of forfeiture.  When the commissioner is satisfied that 
 83.29  a person from whom property is seized was acting in good faith 
 83.30  and without intent to evade the tax imposed by this chapter, the 
 83.31  commissioner shall release the property seized without further 
 83.32  legal proceedings. 
 83.33     <b>EFFECTIVE DATE:</b>  This section is effective for alleged 
 83.34  contraband seized on or after the day following final enactment. 
 83.35                             ARTICLE 9
 83.36                      PROPERTY TAXES AND AIDS
 84.1      Section 1.  Minnesota Statutes 1998, section 97A.061, is 
 84.2   amended by adding a subdivision to read: 
 84.3      Subd. 4.  [OFFSET OF PAYMENTS.] Payments to a county or 
 84.4   town under this section must be reduced by the amount of payment 
 84.5   to that county or town under section 477A.12 for the same lands 
 84.6   in the same year. 
 84.7      <b>EFFECTIVE DATE:</b>  This section is effective for payments 
 84.8   made in calendar year 2001 and thereafter. 
 84.9      Sec. 2.  Minnesota Statutes 1998, section 97A.061, is 
 84.10  amended by adding a subdivision to read: 
 84.11     Subd. 5.  [ALLOCATION OF PAYMENTS.] Notwithstanding section 
 84.12  477A.14, the amounts paid to a county under section 477A.14 for 
 84.13  lands that are also subject to payment under this section shall 
 84.14  be allocated within the county in accordance with subdivision 2. 
 84.15     <b>EFFECTIVE DATE:</b>  This section is effective for payments 
 84.16  made in calendar year 2001 and thereafter. 
 84.17     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 84.18  123B.54, is amended to read: 
 84.19     123B.54 [DEBT SERVICE APPROPRIATION.] 
 84.20     (a) $33,165,000 in fiscal year 2000, $32,057,000 in fiscal 
 84.21  year 2001, and $31,280,000 in fiscal year 2002 and each year 
 84.22  thereafter is appropriated from the general fund to the 
 84.23  commissioner of children, families, and learning for payment of 
 84.24  debt service equalization aid under section 123B.53.  The 2002 
 84.25  appropriation includes $3,201,000 for 2001 and $29,079,000 for 
 84.26  2002. 
 84.27     (b) The appropriations in paragraph (a) must be reduced by 
 84.28  the amount of any money specifically appropriated for the same 
 84.29  purpose in any year from any state fund. 
 84.30     (c) In addition to any other money specifically 
 84.31  appropriated for this section, $10,000,000 is appropriated from 
 84.32  the general fund to the commissioner of children, families, and 
 84.33  learning each year beginning in fiscal year 2002 for the 
 84.34  purposes of this section.  This represents 100 percent of the 
 84.35  aid entitlement. 
 84.36     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
 85.1   272.02, subdivision 39, is amended to read: 
 85.2      Subd. 39.  [ECONOMIC DEVELOPMENT; PUBLIC PURPOSE.] The 
 85.3   holding of property by a political subdivision of the state for 
 85.4   later resale for economic development purposes shall be 
 85.5   considered a public purpose in accordance with subdivision 8 for 
 85.6   a period not to exceed eight years for property located either: 
 85.7      (1) in the metropolitan area as defined in section 473.121; 
 85.8   or 
 85.9      (2) in a city of over 10,000 population located outside of 
 85.10  the metropolitan area, 
 85.11  and 15 years in the remainder of the state.  
 85.12     The holding of property by a political subdivision of the 
 85.13  state for later resale (1) which is purchased or held for 
 85.14  housing purposes, or (2) which meets the conditions described in 
 85.15  section 469.174, subdivision 10, shall be considered a public 
 85.16  purpose in accordance with subdivision 8.  
 85.17     The governing body of the political subdivision which 
 85.18  acquires property which is subject to this subdivision shall 
 85.19  after the purchase of the property certify to the city or county 
 85.20  assessor whether the property is held for economic development 
 85.21  purposes or housing purposes, or whether it meets the conditions 
 85.22  of section 469.174, subdivision 10.  If the property is acquired 
 85.23  for economic development purposes and buildings or other 
 85.24  improvements are constructed after acquisition of the property, 
 85.25  and if more than one-half of the floor space of the buildings or 
 85.26  improvements which is available for lease to or use by a private 
 85.27  individual, corporation, or other entity is leased to or 
 85.28  otherwise used by a private individual, corporation, or other 
 85.29  entity the provisions of this subdivision shall not apply to the 
 85.30  property.  This subdivision shall not create an exemption from 
 85.31  section 272.01, subdivision 2; 272.68; 273.19; or 469.040, 
 85.32  subdivision 3; or other provision of law providing for the 
 85.33  taxation of or for payments in lieu of taxes for publicly held 
 85.34  property which is leased, loaned, or otherwise made available 
 85.35  and used by a private person. 
 85.36     <b>EFFECTIVE DATE:</b>  This section is effective for taxes levied 
 86.1   in 2000, payable in 2001, and thereafter. 
 86.2      Sec. 5.  Minnesota Statutes 1999 Supplement, section 
 86.3   272.02, is amended by adding a subdivision to read: 
 86.4      Subd. 44.  [ELECTRIC GENERATION FACILITY PERSONAL 
 86.5   PROPERTY.] Notwithstanding subdivision 9, clause (a), attached 
 86.6   machinery and other personal property which is part of a 
 86.7   simple-cycle combustion-turbine electric generation facility 
 86.8   that exceeds 250 megawatts of installed capacity and that meets 
 86.9   the requirements of this subdivision is exempt.  At the time of 
 86.10  construction, the facility must:  
 86.11     (1) utilize natural gas as a primary fuel; 
 86.12     (2) be located within 20 miles of parallel existing 16-inch 
 86.13  and 12-inch (outside diameter) natural gas pipelines and a 
 86.14  345-kilovolt high-voltage electric transmission line; and 
 86.15     (3) be designed to provide peaking, emergency backup, or 
 86.16  contingency services, and have received a certificate of need 
 86.17  pursuant to section 216B.243 demonstrating demand for its 
 86.18  capacity.  
 86.19  Construction of the facility must be commenced after January 1, 
 86.20  2000, and before January 1, 2004.  Property eligible for this 
 86.21  exemption does not include electric transmission lines and 
 86.22  interconnections or gas pipelines and interconnections 
 86.23  appurtenant to the property or the facility. 
 86.24     <b>EFFECTIVE DATE:</b>  This section is effective for taxes levied 
 86.25  in 2001, payable in 2002, and thereafter. 
 86.26     Sec. 6.  Minnesota Statutes 1998, section 272.115, 
 86.27  subdivision 1, is amended to read: 
 86.28     Subdivision 1.  [REQUIREMENT.] Except as otherwise provided 
 86.29  in subdivision 5, whenever any real estate is sold for a 
 86.30  consideration in excess of $1,000, whether by warranty deed, 
 86.31  quitclaim deed, contract for deed or any other method of sale, 
 86.32  the grantor, grantee or the legal agent of either shall file a 
 86.33  certificate of value with the county auditor in the county in 
 86.34  which the property is located when the deed or other document is 
 86.35  presented for recording.  This subdivision does not apply to a 
 86.36  deed or other document which has been dated and acknowledged on 
 87.1   or before December 31, 1997.  Contract for deeds are subject to 
 87.2   recording under section 507.235, subdivision 1.  Value shall, in 
 87.3   the case of any deed not a gift, be the amount of the full 
 87.4   actual consideration thereof, paid or to be paid, including the 
 87.5   amount of any lien or liens assumed.  The items and value of 
 87.6   personal property transferred with the real property must be 
 87.7   listed and deducted from the sale price.  The certificate of 
 87.8   value shall include the classification to which the property 
 87.9   belongs for the purpose of determining the fair market value of 
 87.10  the property.  The certificate shall include financing terms and 
 87.11  conditions of the sale which are necessary to determine the 
 87.12  actual, present value of the sale price for purposes of the 
 87.13  sales ratio study.  The commissioner of revenue shall promulgate 
 87.14  administrative rules specifying the financing terms and 
 87.15  conditions which must be included on the certificate.  Pursuant 
 87.16  to the authority of the commissioner of revenue in section 
 87.17  270.066, the certificate of value must include the social 
 87.18  security number or the federal employer identification number of 
 87.19  the grantors and grantees.  The identification numbers of the 
 87.20  grantors and grantees are private data on individuals or 
 87.21  nonpublic data as defined in section 13.02, subdivisions 9 and 
 87.22  12, but, notwithstanding that section, the private or nonpublic 
 87.23  data may be disclosed to the commissioner of revenue for 
 87.24  purposes of tax administration.  The information required to be 
 87.25  shown on the certificate of value is limited to the information 
 87.26  required as of the date of the acknowledgment on the deed or 
 87.27  other document to be recorded. 
 87.28     Sec. 7.  Minnesota Statutes 1999 Supplement, section 
 87.29  273.124, subdivision 1, is amended to read: 
 87.30     Subdivision 1.  [GENERAL RULE.] (a) Residential real estate 
 87.31  that is occupied and used for the purposes of a homestead by its 
 87.32  owner, who must be a Minnesota resident, is a residential 
 87.33  homestead.  
 87.34     Agricultural land, as defined in section 273.13, 
 87.35  subdivision 23, that is occupied and used as a homestead by its 
 87.36  owner, who must be a Minnesota resident, is an agricultural 
 88.1   homestead. 
 88.2      Dates for establishment of a homestead and homestead 
 88.3   treatment provided to particular types of property are as 
 88.4   provided in this section.  
 88.5      Property of held by a trustee, beneficiary, or grantor of 
 88.6   under a trust is not disqualified from receiving eligible for 
 88.7   homestead benefits classification if the homestead requirements 
 88.8   under this chapter are satisfied. 
 88.9      The assessor shall require proof, as provided in 
 88.10  subdivision 13, of the facts upon which classification as a 
 88.11  homestead may be determined.  Notwithstanding any other law, the 
 88.12  assessor may at any time require a homestead application to be 
 88.13  filed in order to verify that any property classified as a 
 88.14  homestead continues to be eligible for homestead status.  
 88.15  Notwithstanding any other law to the contrary, the department of 
 88.16  revenue may, upon request from an assessor, verify whether an 
 88.17  individual who is requesting or receiving homestead 
 88.18  classification has filed a Minnesota income tax return as a 
 88.19  resident for the most recent taxable year for which the 
 88.20  information is available. 
 88.21     When there is a name change or a transfer of homestead 
 88.22  property, the assessor may reclassify the property in the next 
 88.23  assessment unless a homestead application is filed to verify 
 88.24  that the property continues to qualify for homestead 
 88.25  classification. 
 88.26     (b) For purposes of this section, homestead property shall 
 88.27  include property which is used for purposes of the homestead but 
 88.28  is separated from the homestead by a road, street, lot, 
 88.29  waterway, or other similar intervening property.  The term "used 
 88.30  for purposes of the homestead" shall include but not be limited 
 88.31  to uses for gardens, garages, or other outbuildings commonly 
 88.32  associated with a homestead, but shall not include vacant land 
 88.33  held primarily for future development.  In order to receive 
 88.34  homestead treatment for the noncontiguous property, the owner 
 88.35  must use the property for the purposes of the homestead, and 
 88.36  must apply to the assessor, both by the deadlines given in 
 89.1   subdivision 9.  After initial qualification for the homestead 
 89.2   treatment, additional applications for subsequent years are not 
 89.3   required. 
 89.4      (c) Residential real estate that is occupied and used for 
 89.5   purposes of a homestead by a relative of the owner is a 
 89.6   homestead but only to the extent of the homestead treatment that 
 89.7   would be provided if the related owner occupied the property.  
 89.8   For purposes of this paragraph and paragraph (g), "relative" 
 89.9   means a parent, stepparent, child, stepchild, grandparent, 
 89.10  grandchild, brother, sister, uncle, aunt, nephew, or niece.  
 89.11  This relationship may be by blood or marriage.  Property that 
 89.12  has been classified as seasonal recreational residential 
 89.13  property at any time during which it has been owned by the 
 89.14  current owner or spouse of the current owner will not be 
 89.15  reclassified as a homestead unless it is occupied as a homestead 
 89.16  by the owner; this prohibition also applies to property that, in 
 89.17  the absence of this paragraph, would have been classified as 
 89.18  seasonal recreational residential property at the time when the 
 89.19  residence was constructed.  Neither the related occupant nor the 
 89.20  owner of the property may claim a property tax refund under 
 89.21  chapter 290A for a homestead occupied by a relative.  In the 
 89.22  case of a residence located on agricultural land, only the 
 89.23  house, garage, and immediately surrounding one acre of land 
 89.24  shall be classified as a homestead under this paragraph, except 
 89.25  as provided in paragraph (d). 
 89.26     (d) Agricultural property that is occupied and used for 
 89.27  purposes of a homestead by a relative of the owner, is a 
 89.28  homestead, only to the extent of the homestead treatment that 
 89.29  would be provided if the related owner occupied the property, 
 89.30  and only if all of the following criteria are met: 
 89.31     (1) the relative who is occupying the agricultural property 
 89.32  is a son, daughter, grandson, granddaughter, father, or mother 
 89.33  of the owner of the agricultural property or a son or, daughter, 
 89.34  grandson, or granddaughter of the spouse of the owner of the 
 89.35  agricultural property; 
 89.36     (2) the owner of the agricultural property must be a 
 90.1   Minnesota resident; 
 90.2      (3) the owner of the agricultural property must not receive 
 90.3   homestead treatment on any other agricultural property in 
 90.4   Minnesota; and 
 90.5      (4) the owner of the agricultural property is limited to 
 90.6   only one agricultural homestead per family under this paragraph. 
 90.7      Neither the related occupant nor the owner of the property 
 90.8   may claim a property tax refund under chapter 290A for a 
 90.9   homestead occupied by a relative qualifying under this 
 90.10  paragraph.  For purposes of this paragraph, "agricultural 
 90.11  property" means the house, garage, other farm buildings and 
 90.12  structures, and agricultural land. 
 90.13     Application must be made to the assessor by the owner of 
 90.14  the agricultural property to receive homestead benefits under 
 90.15  this paragraph.  The assessor may require the necessary proof 
 90.16  that the requirements under this paragraph have been met. 
 90.17     (e) In the case of property owned by a property owner who 
 90.18  is married, the assessor must not deny homestead treatment in 
 90.19  whole or in part if only one of the spouses occupies the 
 90.20  property and the other spouse is absent due to:  (1) marriage 
 90.21  dissolution proceedings, (2) legal separation, (3) employment or 
 90.22  self-employment in another location, or (4) other personal 
 90.23  circumstances causing the spouses to live separately, not 
 90.24  including an intent to obtain two homestead classifications for 
 90.25  property tax purposes.  To qualify under clause (3), the 
 90.26  spouse's place of employment or self-employment must be at least 
 90.27  50 miles distant from the other spouse's place of employment, 
 90.28  and the homesteads must be at least 50 miles distant from each 
 90.29  other.  Homestead treatment, in whole or in part, shall not be 
 90.30  denied to the owner's spouse who previously occupied the 
 90.31  residence with the owner if the absence of the owner is due to 
 90.32  one of the exceptions provided in this paragraph. 
 90.33     (f) The assessor must not deny homestead treatment in whole 
 90.34  or in part if: 
 90.35     (1) in the case of a property owner who is not married, the 
 90.36  owner is absent due to residence in a nursing home or boarding 
 91.1   care facility and the property is not otherwise occupied; or 
 91.2      (2) in the case of a property owner who is married, the 
 91.3   owner or the owner's spouse or both are absent due to residence 
 91.4   in a nursing home or boarding care facility and the property is 
 91.5   not occupied or is occupied only by the owner's spouse. 
 91.6      (g) If an individual is purchasing property with the intent 
 91.7   of claiming it as a homestead and is required by the terms of 
 91.8   the financing agreement to have a relative shown on the deed as 
 91.9   a coowner, the assessor shall allow a full homestead 
 91.10  classification.  This provision only applies to first-time 
 91.11  purchasers, whether married or single, or to a person who had 
 91.12  previously been married and is purchasing as a single individual 
 91.13  for the first time.  The application for homestead benefits must 
 91.14  be on a form prescribed by the commissioner and must contain the 
 91.15  data necessary for the assessor to determine if full homestead 
 91.16  benefits are warranted. 
 91.17     (h) If residential or agricultural real estate is occupied 
 91.18  and used for purposes of a homestead by a child of a deceased 
 91.19  owner and the property is subject to jurisdiction of probate 
 91.20  court, the child shall receive relative homestead classification 
 91.21  under paragraph (c) or (d) to the same extent they would be 
 91.22  entitled to it if the owner was still living, until the probate 
 91.23  is completed.  For purposes of this paragraph, "child" includes 
 91.24  a relationship by blood or by marriage. 
 91.25     <b>EFFECTIVE DATE:</b>  This section is effective for taxes levied 
 91.26  in 2000, payable in 2001, and thereafter. 
 91.27     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
 91.28  273.124, subdivision 14, is amended to read: 
 91.29     Subd. 14.  [AGRICULTURAL HOMESTEADS; SPECIAL PROVISIONS.] 
 91.30  (a) Real estate of less than ten acres that is the homestead of 
 91.31  its owner must be classified as class 2a under section 273.13, 
 91.32  subdivision 23, paragraph (a), if:  
 91.33     (1) the parcel on which the house is located is contiguous 
 91.34  on at least two sides to (i) agricultural land, (ii) land owned 
 91.35  or administered by the United States Fish and Wildlife Service, 
 91.36  or (iii) land administered by the department of natural 
 92.1   resources on which in lieu taxes are paid under sections 477A.11 
 92.2   to 477A.14; 
 92.3      (2) its owner also owns a noncontiguous parcel of 
 92.4   agricultural land that is at least 20 acres; 
 92.5      (3) the noncontiguous land is located not farther than four 
 92.6   townships or cities, or a combination of townships or cities 
 92.7   from the homestead; and 
 92.8      (4) the agricultural use value of the noncontiguous land 
 92.9   and farm buildings is equal to at least 50 percent of the market 
 92.10  value of the house, garage, and one acre of land. 
 92.11     Homesteads initially classified as class 2a under the 
 92.12  provisions of this paragraph shall remain classified as class 
 92.13  2a, irrespective of subsequent changes in the use of adjoining 
 92.14  properties, as long as the homestead remains under the same 
 92.15  ownership, the owner owns a noncontiguous parcel of agricultural 
 92.16  land that is at least 20 acres, and the agricultural use value 
 92.17  qualifies under clause (4).  Homestead classification under this 
 92.18  paragraph is limited to property that qualified under this 
 92.19  paragraph for the 1998 assessment. 
 92.20     (b) Agricultural property consisting of at least 40 acres 
 92.21  shall be classified homestead, to the same extent as other 
 92.22  agricultural homestead property, if all of the following 
 92.23  criteria are met: 
 92.24     (1) the owner is actively farming the agricultural 
 92.25  property; 
 92.26     (2) the owner of the agricultural property is a Minnesota 
 92.27  resident; 
 92.28     (3) neither the owner nor the spouse of the agricultural 
 92.29  property owner claims another agricultural homestead in 
 92.30  Minnesota; and 
 92.31     (4) the owner does not live farther than four townships or 
 92.32  cities, or a combination of four townships or cities, from the 
 92.33  agricultural property. 
 92.34  As used in this paragraph, "owner" includes a shareholder of a 
 92.35  family farm corporation that owns the property or a partner in a 
 92.36  family farm partnership that owns the property. 
 93.1      (c) Except as provided in paragraph (e), noncontiguous land 
 93.2   shall be included as part of a homestead under section 273.13, 
 93.3   subdivision 23, paragraph (a), only if the homestead is 
 93.4   classified as class 2a and the detached land is located in the 
 93.5   same township or city, or not farther than four townships or 
 93.6   cities or combination thereof from the homestead.  Any taxpayer 
 93.7   of these noncontiguous lands must notify the county assessor 
 93.8   that the noncontiguous land is part of the taxpayer's homestead, 
 93.9   and, if the homestead is located in another county, the taxpayer 
 93.10  must also notify the assessor of the other county. 
 93.11     (d) Agricultural land used for purposes of a homestead and 
 93.12  actively farmed by a person holding a vested remainder interest 
 93.13  in it must be classified as a homestead under section 273.13, 
 93.14  subdivision 23, paragraph (a).  If agricultural land is 
 93.15  classified class 2a, any other dwellings on the land used for 
 93.16  purposes of a homestead by persons holding vested remainder 
 93.17  interests who are actively engaged in farming the property, and 
 93.18  up to one acre of the land surrounding each homestead and 
 93.19  reasonably necessary for the use of the dwelling as a home, must 
 93.20  also be assessed class 2a. 
 93.21     (e) Agricultural land and buildings that were class 2a 
 93.22  homestead property under section 273.13, subdivision 23, 
 93.23  paragraph (a), for the 1997 assessment shall remain classified 
 93.24  as agricultural homesteads for subsequent assessments if:  
 93.25     (1) the property owner abandoned the homestead dwelling 
 93.26  located on the agricultural homestead as a result of the April 
 93.27  1997 floods; 
 93.28     (2) the property is located in the county of Polk, Clay, 
 93.29  Kittson, Marshall, Norman, or Wilkin; 
 93.30     (3) the agricultural land and buildings remain under the 
 93.31  same ownership for the current assessment year as existed for 
 93.32  the 1997 assessment year and continue to be used for 
 93.33  agricultural purposes; 
 93.34     (4) the dwelling occupied by the owner is located in 
 93.35  Minnesota and is within 30 miles of one of the parcels of 
 93.36  agricultural land that is owned by the taxpayer; and 
 94.1      (5) the owner notifies the county assessor that the 
 94.2   relocation was due to the 1997 floods, and the owner furnishes 
 94.3   the assessor any information deemed necessary by the assessor in 
 94.4   verifying the change in dwelling.  Further notifications to the 
 94.5   assessor are not required if the property continues to meet all 
 94.6   the requirements in this paragraph and any dwellings on the 
 94.7   agricultural land remain uninhabited. 
 94.8      (f) Agricultural land and buildings that were class 2a 
 94.9   homestead property under section 273.13, subdivision 23, 
 94.10  paragraph (a), for the 1998 assessment shall remain classified 
 94.11  agricultural homesteads for subsequent assessments if: 
 94.12     (1) the property owner abandoned the homestead dwelling 
 94.13  located on the agricultural homestead as a result of damage 
 94.14  caused by a March 29, 1998, tornado; 
 94.15     (2) the property is located in the county of Blue Earth, 
 94.16  Brown, Cottonwood, LeSueur, Nicollet, Nobles, or Rice; 
 94.17     (3) the agricultural land and buildings remain under the 
 94.18  same ownership for the current assessment year as existed for 
 94.19  the 1998 assessment year; 
 94.20     (4) the dwelling occupied by the owner is located in this 
 94.21  state and is within 50 miles of one of the parcels of 
 94.22  agricultural land that is owned by the taxpayer; and 
 94.23     (5) the owner notifies the county assessor that the 
 94.24  relocation was due to a March 29, 1998, tornado, and the owner 
 94.25  furnishes the assessor any information deemed necessary by the 
 94.26  assessor in verifying the change in homestead dwelling.  For 
 94.27  taxes payable in 1999, the owner must notify the assessor by 
 94.28  December 1, 1998.  Further notifications to the assessor are not 
 94.29  required if the property continues to meet all the requirements 
 94.30  in this paragraph and any dwellings on the agricultural land 
 94.31  remain uninhabited. 
 94.32     <b>EFFECTIVE DATE:</b>  This section is effective for taxes levied 
 94.33  in 2000, payable in 2001, and thereafter. 
 94.34     Sec. 9.  Minnesota Statutes 1998, section 273.124, is 
 94.35  amended by adding a subdivision to read: 
 94.36     Subd. 21.  [TRUST PROPERTY; HOMESTEAD.] Real property held 
 95.1   by a trustee under a trust is eligible for classification as 
 95.2   homestead property if: 
 95.3      (1) the grantor or surviving spouse of the grantor of the 
 95.4   trust occupies and uses the property as a homestead; 
 95.5      (2) a relative or surviving relative of the grantor who 
 95.6   meets the requirements of subdivision 1, paragraph (c), in the 
 95.7   case of residential real estate; or subdivision 1, paragraph 
 95.8   (d), in the case of agricultural property, occupies and uses the 
 95.9   property as a homestead; 
 95.10     (3) a family farm corporation, a partnership operating a 
 95.11  family farm, or a joint farm venture operating a family farm 
 95.12  rents the property held by a trustee under a trust, and a 
 95.13  shareholder or partner of the corporation, partnership, or joint 
 95.14  farm venture occupies and uses the property as a homestead, and 
 95.15  is actively farming the property on behalf of the corporation, 
 95.16  partnership, or joint farm venture; or 
 95.17     (4) a person who has received homestead classification for 
 95.18  property taxes payable in 2000 on the basis of an unqualified 
 95.19  legal right under the terms of the trust agreement to occupy the 
 95.20  property as that person's homestead and who continues to use the 
 95.21  property as a homestead. 
 95.22     For purposes of this subdivision, "grantor" is defined as 
 95.23  the person creating or establishing a testamentary, inter vivos, 
 95.24  revocable or irrevocable trust by written instrument or through 
 95.25  the exercise of a power of appointment. 
 95.26     <b>EFFECTIVE DATE:</b>  This section is effective for taxes levied 
 95.27  in 2000, payable in 2001, and thereafter. 
 95.28     Sec. 10.  Minnesota Statutes 1999 Supplement, section 
 95.29  273.13, subdivision 24, is amended to read: 
 95.30     Subd. 24.  [CLASS 3.] (a) Commercial and industrial 
 95.31  property and utility real and personal property is class 3a.  
 95.32  Each parcel of real property has a class rate of 2.4 percent of 
 95.33  the first tier of market value, and 3.4 percent of the remaining 
 95.34  market value, except that in the case of contiguous parcels of 
 95.35  property owned by the same person or entity, only the value 
 95.36  equal to the first-tier value of the contiguous parcels 
 96.1   qualifies for the reduced class rate.  For the purposes of this 
 96.2   subdivision, the first tier means the first $150,000 of market 
 96.3   value.  Real property owned in fee by a utility for transmission 
 96.4   line right-of-way shall be classified at the class rate for the 
 96.5   higher tier.  All personal property shall be classified at the 
 96.6   class rate for the higher tier.  For purposes of this 
 96.7   subdivision "personal property" means tools, implements, and 
 96.8   machinery of an electric generating, transmission, or 
 96.9   distribution system, or a pipeline system transporting or 
 96.10  distributing water, gas, crude oil, or petroleum products or 
 96.11  mains and pipes used in the distribution of steam or hot or 
 96.12  chilled water for heating or cooling buildings, which are 
 96.13  fixtures. 
 96.14     For purposes of this paragraph, parcels are considered to 
 96.15  be contiguous even if they are separated from each other by a 
 96.16  road, street, vacant lot, waterway, or other similar intervening 
 96.17  type of property. 
 96.18     (b) Employment property defined in section 469.166, during 
 96.19  the period provided in section 469.170, shall constitute class 
 96.20  3b.  The class rates for class 3b property are determined under 
 96.21  paragraph (a). 
 96.22     (c)(1) Subject to the limitations of clause (2), structures 
 96.23  which are (i) located on property classified as class 3a, (ii) 
 96.24  constructed under an initial building permit issued after 
 96.25  January 2, 1996, (iii) located in a transit zone as defined 
 96.26  under section 473.3915, subdivision 3, (iv) located within the 
 96.27  boundaries of a school district, and (v) not primarily used for 
 96.28  retail or transient lodging purposes, shall have a class rate 
 96.29  equal to the lesser of 2.975 percent or the class rate of the 
 96.30  second tier of the commercial property rate under paragraph (a) 
 96.31  on any portion of the market value that does not qualify for the 
 96.32  first tier class rate under paragraph (a).  As used in item (v), 
 96.33  a structure is primarily used for retail or transient lodging 
 96.34  purposes if over 50 percent of its square footage is used for 
 96.35  those purposes.  A class rate equal to the lesser of 2.975 
 96.36  percent or the class rate of the second tier of the commercial 
 97.1   property class rate under paragraph (a) shall also apply to 
 97.2   improvements to existing structures that meet the requirements 
 97.3   of items (i) to (v) if the improvements are constructed under an 
 97.4   initial building permit issued after January 2, 1996, even if 
 97.5   the remainder of the structure was constructed prior to January 
 97.6   2, 1996.  For the purposes of this paragraph, a structure shall 
 97.7   be considered to be located in a transit zone if any portion of 
 97.8   the structure lies within the zone.  If any property once 
 97.9   eligible for treatment under this paragraph ceases to remain 
 97.10  eligible due to revisions in transit zone boundaries, the 
 97.11  property shall continue to receive treatment under this 
 97.12  paragraph for a period of three years. 
 97.13     (2) This clause applies to any structure qualifying for the 
 97.14  transit zone reduced class rate under clause (1) on January 2, 
 97.15  1999, or any structure meeting any of the qualification criteria 
 97.16  in item (i) and otherwise qualifying for the transit zone 
 97.17  reduced class rate under clause (1).  Such a structure continues 
 97.18  to receive the transit zone reduced class rate until the 
 97.19  occurrence of one of the events in item (ii).  Property 
 97.20  qualifying under item (i)(D), that is located outside of a city 
 97.21  of the first class, qualifies for the transit zone reduced class 
 97.22  rate as provided in that item.  Property qualifying under item 
 97.23  (i)(E) qualifies for the transit zone reduced class rate as 
 97.24  provided in that item. 
 97.25     (i) A structure qualifies for the rate in this clause if it 
 97.26  is: 
 97.27     (A) property for which a building permit was issued before 
 97.28  December 31, 1998; or 
 97.29     (B) property for which a building permit was issued before 
 97.30  June 30, 2001, if: 
 97.31     (I) at least 50 percent of the land on which the structure 
 97.32  is to be built has been acquired or is the subject of signed 
 97.33  purchase agreements or signed options as of March 15, 1998, by 
 97.34  the entity that proposes construction of the project or an 
 97.35  affiliate of the entity; 
 97.36     (II) signed agreements have been entered into with one 
 98.1   entity or with affiliated entities to lease for the account of 
 98.2   the entity or affiliated entities at least 50 percent of the 
 98.3   square footage of the structure or the owner of the structure 
 98.4   will occupy at least 50 percent of the square footage of the 
 98.5   structure; and 
 98.6      (III) one of the following requirements is met: 
 98.7      the project proposer has submitted the completed data 
 98.8   portions of an environmental assessment worksheet by December 
 98.9   31, 1998; or 
 98.10     a notice of determination of adequacy of an environmental 
 98.11  impact statement has been published by April 1, 1999; or 
 98.12     an alternative urban areawide review has been completed by 
 98.13  April 1, 1999; or 
 98.14     (C) property for which a building permit is issued before 
 98.15  July 30, 1999, if: 
 98.16     (I) at least 50 percent of the land on which the structure 
 98.17  is to be built has been acquired or is the subject of signed 
 98.18  purchase agreements as of March 31, 1998, by the entity that 
 98.19  proposes construction of the project or an affiliate of the 
 98.20  entity; 
 98.21     (II) a signed agreement has been entered into between the 
 98.22  building developer and a tenant to lease for its own account at 
 98.23  least 200,000 square feet of space in the building; 
 98.24     (III) a signed letter of intent is entered into by July 1, 
 98.25  1998, between the building developer and the tenant to lease the 
 98.26  space for its own account; and 
 98.27     (IV) the environmental review process required by state law 
 98.28  was commenced by December 31, 1998; 
 98.29     (D) property for which an irrevocable letter of credit with 
 98.30  a housing and redevelopment authority was signed before December 
 98.31  31, 1998.  The structure shall receive the transit zone reduced 
 98.32  class rate during construction and for the duration of time that 
 98.33  the original tenants remain in the building.  Any unoccupied net 
 98.34  leasable square footage that is not leased within 36 months 
 98.35  after the certificate of occupancy has been issued for the 
 98.36  building shall not be eligible to receive the reduced class 
 99.1   rate.  This reduced class rate applies only if the a qualifying 
 99.2   entity that constructed the structure continues to own the 
 99.3   property; 
 99.4      (E) property, located in a city of the first class, and for 
 99.5   which the building permits for the excavation, the parking ramp, 
 99.6   and the office tower were issued prior to April 1, 1999, shall 
 99.7   receive the reduced class rate during construction and for the 
 99.8   first five assessment years immediately following its initial 
 99.9   occupancy provided that, when completed, at least 25 percent of 
 99.10  the net leasable square footage must be occupied by the a 
 99.11  qualifying entity or the parent entity constructing the 
 99.12  structure each year during this time period.  In order to 
 99.13  receive the reduced class rate on the structure in any 
 99.14  subsequent assessment years, at least 50 percent of the rentable 
 99.15  square footage must be occupied by the a qualifying entity or 
 99.16  the parent entity that constructed the structure.  This reduced 
 99.17  class rate applies only if the a qualifying entity or the parent 
 99.18  entity that constructed the structure continues to own the 
 99.19  property. 
 99.20     (ii) A structure specified by this clause, other than a 
 99.21  structure qualifying under clause (i)(D) or (E), shall continue 
 99.22  to receive the transit zone reduced class rate until the 
 99.23  occurrence of one of the following events: 
 99.24     (A) if the structure upon initial occupancy will be owner 
 99.25  occupied by the entity initially constructing the structure or 
 99.26  an affiliated entity, the structure receives the reduced class 
 99.27  rate until the structure ceases to be at least 50 percent 
 99.28  occupied by the entity or an affiliated entity, provided, if the 
 99.29  portion of the structure occupied by that entity or an affiliate 
 99.30  of the entity is less than 85 percent, the transit zone class 
 99.31  rate reduction for the portion of structure not so occupied 
 99.32  terminates upon the leasing of such space to any nonaffiliated 
 99.33  entity; or 
 99.34     (B) if the structure is leased by a single entity or 
 99.35  affiliated entity at the time of initial occupancy, the 
 99.36  structure shall receive the reduced class rate until the 
100.1   structure ceases to be at least 50 percent occupied by the 
100.2   entity or an affiliated entity, provided, if the portion of the 
100.3   structure occupied by that entity or an affiliate of the entity 
100.4   is less than 85 percent, the transit zone class rate reduction 
100.5   for the portion of structure not so occupied shall terminate 
100.6   upon the leasing of such space to any nonaffiliated entity; or 
100.7      (C) if the structure meets the criteria in item (i)(C), the 
100.8   structure shall receive the reduced class rate until the 
100.9   expiration of the initial lease term of the applicable tenants. 
100.10     Percentages occupied or leased shall be determined based 
100.11  upon net leasable square footage in the structure.  The assessor 
100.12  shall allocate the value of the structure in the same fashion as 
100.13  provided in the general law for portions of any structure 
100.14  receiving and not receiving the transit tax class reduction as a 
100.15  result of this clause. 
100.16     (3) For purposes of paragraph (c), "qualifying entity" 
100.17  means the entity owning the property on September 1, 2000, or an 
100.18  affiliate of an entity that owned the property on September 1, 
100.19  2000. 
100.20     <b>EFFECTIVE DATE:</b>  This section is effective for property 
100.21  taxes payable in 2001 and thereafter. 
100.22     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
100.23  273.13, subdivision 25, is amended to read: 
100.24     Subd. 25.  [CLASS 4.] (a) Class 4a is residential real 
100.25  estate containing four or more units and used or held for use by 
100.26  the owner or by the tenants or lessees of the owner as a 
100.27  residence for rental periods of 30 days or more.  Class 4a also 
100.28  includes hospitals licensed under sections 144.50 to 144.56, 
100.29  other than hospitals exempt under section 272.02, and contiguous 
100.30  property used for hospital purposes, without regard to whether 
100.31  the property has been platted or subdivided.  Class 4a property 
100.32  in a city with a population of 5,000 or less, that is (1) 
100.33  located outside of the metropolitan area, as defined in section 
100.34  473.121, subdivision 2, or outside any county contiguous to the 
100.35  metropolitan area, and (2) whose city boundary is at least 15 
100.36  miles from the boundary of any city with a population greater 
101.1   than 5,000 has a class rate of 2.15 percent of market value.  
101.2   All other Class 4a property has a class rate of 2.4 1.95 percent 
101.3   of market value.  For purposes of this paragraph, population has 
101.4   the same meaning given in section 477A.011, subdivision 3. 
101.5      (b) Class 4b includes: 
101.6      (1) residential real estate containing less than four units 
101.7   that does not qualify as class 4bb, other than seasonal 
101.8   residential, and recreational; 
101.9      (2) manufactured homes not classified under any other 
101.10  provision; 
101.11     (3) a dwelling, garage, and surrounding one acre of 
101.12  property on a nonhomestead farm classified under subdivision 23, 
101.13  paragraph (b) containing two or three units; 
101.14     (4) unimproved property that is classified residential as 
101.15  determined under subdivision 33.  
101.16     Class 4b property has a class rate of 1.65 percent of 
101.17  market value.  
101.18     (c) Class 4bb includes: 
101.19     (1) nonhomestead residential real estate containing one 
101.20  unit, other than seasonal residential, and recreational; and 
101.21     (2) a single family dwelling, garage, and surrounding one 
101.22  acre of property on a nonhomestead farm classified under 
101.23  subdivision 23, paragraph (b). 
101.24     Class 4bb has a class rate of 1.2 percent on the first 
101.25  $76,000 of market value and a class rate of 1.65 percent of its 
101.26  market value that exceeds $76,000. 
101.27     Property that has been classified as seasonal recreational 
101.28  residential property at any time during which it has been owned 
101.29  by the current owner or spouse of the current owner does not 
101.30  qualify for class 4bb. 
101.31     (d) Class 4c property includes: 
101.32     (1) except as provided in subdivision 22, paragraph (c), 
101.33  real property devoted to temporary and seasonal residential 
101.34  occupancy for recreation purposes, including real property 
101.35  devoted to temporary and seasonal residential occupancy for 
101.36  recreation purposes and not devoted to commercial purposes for 
102.1   more than 250 days in the year preceding the year of 
102.2   assessment.  For purposes of this clause, property is devoted to 
102.3   a commercial purpose on a specific day if any portion of the 
102.4   property is used for residential occupancy, and a fee is charged 
102.5   for residential occupancy.  In order for a property to be 
102.6   classified as class 4c, seasonal recreational residential for 
102.7   commercial purposes, at least 40 percent of the annual gross 
102.8   lodging receipts related to the property must be from business 
102.9   conducted during 90 consecutive days and either (i) at least 60 
102.10  percent of all paid bookings by lodging guests during the year 
102.11  must be for periods of at least two consecutive nights; or (ii) 
102.12  at least 20 percent of the annual gross receipts must be from 
102.13  charges for rental of fish houses, boats and motors, 
102.14  snowmobiles, downhill or cross-country ski equipment, or charges 
102.15  for marina services, launch services, and guide services, or the 
102.16  sale of bait and fishing tackle.  For purposes of this 
102.17  determination, a paid booking of five or more nights shall be 
102.18  counted as two bookings.  Class 4c also includes commercial use 
102.19  real property used exclusively for recreational purposes in 
102.20  conjunction with class 4c property devoted to temporary and 
102.21  seasonal residential occupancy for recreational purposes, up to 
102.22  a total of two acres, provided the property is not devoted to 
102.23  commercial recreational use for more than 250 days in the year 
102.24  preceding the year of assessment and is located within two miles 
102.25  of the class 4c property with which it is used.  Class 4c 
102.26  property classified in this clause also includes the remainder 
102.27  of class 1c resorts provided that the entire property including 
102.28  that portion of the property classified as class 1c also meets 
102.29  the requirements for class 4c under this clause; otherwise the 
102.30  entire property is classified as class 3.  Owners of real 
102.31  property devoted to temporary and seasonal residential occupancy 
102.32  for recreation purposes and all or a portion of which was 
102.33  devoted to commercial purposes for not more than 250 days in the 
102.34  year preceding the year of assessment desiring classification as 
102.35  class 1c or 4c, must submit a declaration to the assessor 
102.36  designating the cabins or units occupied for 250 days or less in 
103.1   the year preceding the year of assessment by January 15 of the 
103.2   assessment year.  Those cabins or units and a proportionate 
103.3   share of the land on which they are located will be designated 
103.4   class 1c or 4c as otherwise provided.  The remainder of the 
103.5   cabins or units and a proportionate share of the land on which 
103.6   they are located will be designated as class 3a.  The owner of 
103.7   property desiring designation as class 1c or 4c property must 
103.8   provide guest registers or other records demonstrating that the 
103.9   units for which class 1c or 4c designation is sought were not 
103.10  occupied for more than 250 days in the year preceding the 
103.11  assessment if so requested.  The portion of a property operated 
103.12  as a (1) restaurant, (2) bar, (3) gift shop, and (4) other 
103.13  nonresidential facility operated on a commercial basis not 
103.14  directly related to temporary and seasonal residential occupancy 
103.15  for recreation purposes shall not qualify for class 1c or 4c; 
103.16     (2) qualified property used as a golf course if: 
103.17     (i) it is open to the public on a daily fee basis.  It may 
103.18  charge membership fees or dues, but a membership fee may not be 
103.19  required in order to use the property for golfing, and its green 
103.20  fees for golfing must be comparable to green fees typically 
103.21  charged by municipal courses; and 
103.22     (ii) it meets the requirements of section 273.112, 
103.23  subdivision 3, paragraph (d). 
103.24     A structure used as a clubhouse, restaurant, or place of 
103.25  refreshment in conjunction with the golf course is classified as 
103.26  class 3a property; 
103.27     (3) real property up to a maximum of one acre of land owned 
103.28  by a nonprofit community service oriented organization; provided 
103.29  that the property is not used for a revenue-producing activity 
103.30  for more than six days in the calendar year preceding the year 
103.31  of assessment and the property is not used for residential 
103.32  purposes on either a temporary or permanent basis.  For purposes 
103.33  of this clause, a "nonprofit community service oriented 
103.34  organization" means any corporation, society, association, 
103.35  foundation, or institution organized and operated exclusively 
103.36  for charitable, religious, fraternal, civic, or educational 
104.1   purposes, and which is exempt from federal income taxation 
104.2   pursuant to section 501(c)(3), (10), or (19) of the Internal 
104.3   Revenue Code of 1986, as amended through December 31, 1990.  For 
104.4   purposes of this clause, "revenue-producing activities" shall 
104.5   include but not be limited to property or that portion of the 
104.6   property that is used as an on-sale intoxicating liquor or 3.2 
104.7   percent malt liquor establishment licensed under chapter 340A, a 
104.8   restaurant open to the public, bowling alley, a retail store, 
104.9   gambling conducted by organizations licensed under chapter 349, 
104.10  an insurance business, or office or other space leased or rented 
104.11  to a lessee who conducts a for-profit enterprise on the 
104.12  premises.  Any portion of the property which is used for 
104.13  revenue-producing activities for more than six days in the 
104.14  calendar year preceding the year of assessment shall be assessed 
104.15  as class 3a.  The use of the property for social events open 
104.16  exclusively to members and their guests for periods of less than 
104.17  24 hours, when an admission is not charged nor any revenues are 
104.18  received by the organization shall not be considered a 
104.19  revenue-producing activity; 
104.20     (4) post-secondary student housing of not more than one 
104.21  acre of land that is owned by a nonprofit corporation organized 
104.22  under chapter 317A and is used exclusively by a student 
104.23  cooperative, sorority, or fraternity for on-campus housing or 
104.24  housing located within two miles of the border of a college 
104.25  campus; 
104.26     (5) manufactured home parks as defined in section 327.14, 
104.27  subdivision 3; and 
104.28     (6) real property that is actively and exclusively devoted 
104.29  to indoor fitness, health, social, recreational, and related 
104.30  uses, is owned and operated by a not-for-profit corporation, and 
104.31  is located within the metropolitan area as defined in section 
104.32  473.121, subdivision 2; and 
104.33     (7) a leased or privately owned noncommercial aircraft 
104.34  storage hangar that is not exempt under section 272.01, 
104.35  subdivision 2, and the land on which it is located, provided 
104.36  that: 
105.1      (i) the land is on an airport owned or operated by a city, 
105.2   town, county, metropolitan airports commission, or group 
105.3   thereof; and 
105.4      (ii) the land lease, or any ordinance or other signed 
105.5   agreement restricting the use of the leased premise, prohibits 
105.6   commercial activity performed at the hangar. 
105.7      If a hangar classified under this clause is sold after the 
105.8   effective date of this act, a bill of sale must be filed by the 
105.9   new owner with the county assessor of the county where the 
105.10  property is located within 60 days of the sale. 
105.11     Class 4c property has a class rate of 1.65 percent of 
105.12  market value, except that (i) each parcel of seasonal 
105.13  residential recreational property not used for commercial 
105.14  purposes has the same class rates as class 4bb property, (ii) 
105.15  manufactured home parks assessed under clause (5) have the same 
105.16  a class rate as class 4b property of 1.2 percent, and (iii) 
105.17  property described in paragraph (d), clause (4), has the same 
105.18  class rate as the rate applicable to the first tier of class 4bb 
105.19  nonhomestead residential real estate under paragraph (c).  
105.20     (e) Class 4d property is qualifying low-income rental 
105.21  housing certified to the assessor by the housing finance agency 
105.22  under sections 273.126 and 462A.071.  Class 4d includes land in 
105.23  proportion to the total market value of the building that is 
105.24  qualifying low-income rental housing.  For all properties 
105.25  qualifying as class 4d, the market value determined by the 
105.26  assessor must be based on the normal approach to value using 
105.27  normal unrestricted rents. 
105.28     Class 4d property has a class rate of one percent of market 
105.29  value.  
105.30     <b>EFFECTIVE DATE:</b>  The provisions of clause (7) are effective 
105.31  for taxes levied in 2000, payable in 2001 only.  The reminder of 
105.32  this section is effective for taxes levied in 2000, payable in 
105.33  2001, and thereafter. 
105.34     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
105.35  273.1382, subdivision 1b, is amended to read: 
105.36     Subd. 1b.  [EDUCATION AGRICULTURAL CREDIT.] Property 
106.1   classified as class 2a agricultural homestead or class 2b 
106.2   agricultural nonhomestead or timberland is eligible for 
106.3   education agricultural credit.  The credit is equal to 54 88.5 
106.4   percent, in the case of agricultural homestead property, or 50 
106.5   percent, in the case of agricultural nonhomestead property or 
106.6   timberland, of the property's net tax capacity times the 
106.7   education credit tax rate determined in subdivision 1.  The net 
106.8   tax capacity of class 2a property attributable to the house, 
106.9   garage, and surrounding one acre of land is not eligible for the 
106.10  credit under this subdivision. 
106.11     <b>EFFECTIVE DATE:</b>  This section is effective for taxes 
106.12  payable in 2001, and thereafter. 
106.13     Sec. 13.  Minnesota Statutes 1999 Supplement, section 
106.14  273.1398, subdivision 1a, is amended to read: 
106.15     Subd. 1a.  [TAX BASE DIFFERENTIAL.] (a) For aids payable in 
106.16  2000, the tax base differential is: 
106.17     (1) 0.45 percent of the assessment year 1998 taxable market 
106.18  value of class 2a agricultural homestead property, excluding the 
106.19  house, garage, and surrounding one acre of land, between 
106.20  $115,000 and $600,000 and over 320 acres, minus the value over 
106.21  $600,000 that is less than 320 acres; plus 
106.22     (2) 0.5 percent of the assessment year 1998 taxable market 
106.23  value of noncommercial seasonal recreational residential 
106.24  property over $75,000 in value; plus 
106.25     (3) for purposes of computing the fiscal disparity 
106.26  adjustment only, 0.2 percent of the assessment year 1998 taxable 
106.27  market value of class 3 commercial-industrial property over 
106.28  $150,000. 
106.29     (b) For the purposes of the distribution of homestead and 
106.30  agricultural credit aid for aids payable in 2000, the 
106.31  commissioner of revenue shall use the best information available 
106.32  as of June 30, 1999, to make an estimate of the value described 
106.33  in paragraph (a), clause (1).  The commissioner shall adjust the 
106.34  distribution of homestead and agricultural credit aid for aids 
106.35  payable in 2001 and subsequent years if new information 
106.36  regarding the value described in paragraph (a), clause (1), 
107.1   becomes available after June 30, 1999. 
107.2      (c) For aids payable in 2001, the tax base differential is: 
107.3      (1) 0.45 percent of the assessment year 1999 taxable market 
107.4   value of class 4a property that had a class rate of 2.4 percent 
107.5   for taxes payable in 2000, plus 0.2 percent of the assessment 
107.6   year 1999 taxable market value of class 4a property that had a 
107.7   class rate of 2.15 percent of taxes payable in 2000; plus 
107.8      (2) 0.45 percent of the assessment year 1999 taxable market 
107.9   value of manufactured home parks classified under section 
107.10  273.13, subdivision 25, paragraph (d), clause (5). 
107.11     <b>EFFECTIVE DATE:</b>  This section is effective for aids payable 
107.12  in 2001, and thereafter. 
107.13     Sec. 14.  Minnesota Statutes 1998, section 273.1398, 
107.14  subdivision 4, is amended to read: 
107.15     Subd. 4.  [DISPARITY REDUCTION CREDIT.] (a) Beginning with 
107.16  taxes payable in 1989, class 4a, class 3a, and class 3b property 
107.17  qualifies for a disparity reduction credit if:  (1) the property 
107.18  is located in a border city that has an enterprise zone 
107.19  designated pursuant to section 469.168, subdivision 4; (2) the 
107.20  property is located in a city with a population greater than 
107.21  2,500 and less than 35,000 according to the 1980 decennial 
107.22  census; (3) the city is adjacent to a city in another state or 
107.23  immediately adjacent to a city adjacent to a city in another 
107.24  state; and (4) the adjacent city in the other state has a 
107.25  population of greater than 5,000 and less than 75,000.  
107.26     (b) The credit is an amount sufficient to reduce (i) the 
107.27  taxes levied on class 4a property to 2.3 1.95 percent of the 
107.28  property's market value and (ii) the tax on class 3a and class 
107.29  3b property to 2.3 percent of market value.  
107.30     (c) The county auditor shall annually certify the costs of 
107.31  the credits to the department of revenue.  The department shall 
107.32  reimburse local governments for the property taxes foregone as 
107.33  the result of the credits in proportion to their total levies. 
107.34     Sec. 15.  Minnesota Statutes 1999 Supplement, section 
107.35  273.1398, subdivision 4a, is amended to read: 
107.36     Subd. 4a.  [AID OFFSET FOR COURT COSTS.] (a) By July 15, 
108.1   1999, the supreme court shall determine and certify to the 
108.2   commissioner of revenue for each county, other than counties 
108.3   located in the eighth judicial district, the county's share of 
108.4   the costs assumed under Laws 1999, chapter 216, article 7, 
108.5   during the fiscal year beginning July 1, 2000, less an amount 
108.6   equal to the county's share of transferred fines collected by 
108.7   the district courts in the county during calendar year 1998.  
108.8      (b) Payments to a county under subdivision 2 or section 
108.9   273.166 for calendar year 2000 must be permanently reduced by an 
108.10  amount equal to 75 percent of the net cost to the state for 
108.11  assumption of district court costs as certified in paragraph (a).
108.12     (c) Payments to a county under subdivision 2 or section 
108.13  273.166 for calendar year 2001 must be permanently reduced by an 
108.14  amount equal to 25 percent of the net cost to the state for 
108.15  assumption of district court costs as certified in paragraph (a).
108.16     (d) Payments to a county under subdivision 2 for calendar 
108.17  year 2001 are permanently increased by an amount equal to 7.5 
108.18  percent of the county's share of transferred fines collected by 
108.19  the district courts in the county during calendar year 1998, as 
108.20  determined under paragraph (a). 
108.21     <b>EFFECTIVE DATE:</b>  This section is effective for aids payable 
108.22  in 2001. 
108.23     Sec. 16.  Minnesota Statutes 1998, section 273.37, 
108.24  subdivision 3, is amended to read: 
108.25     Subd. 3.  Taxable wind energy conversion systems, as 
108.26  defined in section 216C.06, subdivision 12, which are not owned, 
108.27  operated, and exclusively controlled by the owner of the land 
108.28  upon which the system is situated, must be listed and assessed 
108.29  by the commissioner of revenue as personal property in the name 
108.30  of the owner of the system in the taxing district where it is 
108.31  situated. 
108.32     <b>EFFECTIVE DATE:</b>  This section is effective for the 2000 
108.33  assessment and thereafter. 
108.34     Sec. 17.  [273.372] [PROCEEDINGS AND APPEALS; UTILITY 
108.35  VALUATIONS.] 
108.36     An appeal by a utility company concerning the exemption, 
109.1   valuation, or classification on property for which the 
109.2   commissioner of revenue has provided the county with 
109.3   commissioner's orders or recommended values must be brought 
109.4   against the commissioner in tax court or in district court of 
109.5   the county where the property is located, and not against the 
109.6   county or taxing district where the property is located.  If the 
109.7   appeal to a court is of an order of the commissioner, it must be 
109.8   brought under chapter 271.  If the appeal is brought under 
109.9   chapter 278, the procedures in that chapter apply.  This 
109.10  provision applies to the property contained under sections 
109.11  273.33, 273.35, 273.36, and 273.37, but only if the appealed 
109.12  values have remained unchanged from those provided to the county 
109.13  by the commissioner.  If the exemption, valuation, or 
109.14  classification being appealed has been changed by the county, 
109.15  then the action must be brought under chapter 278 in the county 
109.16  where the property is located. 
109.17     Upon filing of any appeal by a utility company against the 
109.18  commissioner, the commissioner shall give notice by first class 
109.19  mail to each county which would be affected by the appeal. 
109.20     Companies that submit the reports under section 273.371 by 
109.21  the date specified in that section, or by the date specified by 
109.22  the commissioner in an extension, may appeal administratively to 
109.23  the commissioner under the procedures in section 270.11, 
109.24  subdivision 6, prior to bringing an action in tax court or in 
109.25  district court, however, instituting an administrative appeal 
109.26  with the commissioner does not change or modify the deadline in 
109.27  section 278.01 for bringing an action in tax court or district 
109.28  court. 
109.29     <b>EFFECTIVE DATE:</b>  This section is effective for appeals made 
109.30  on property for assessment year 1999 and thereafter. 
109.31     Sec. 18.  Minnesota Statutes 1998, section 275.065, 
109.32  subdivision 3, is amended to read: 
109.33     Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
109.34  county auditor shall prepare and the county treasurer shall 
109.35  deliver after November 10 and on or before November 24 each 
109.36  year, by first class mail to each taxpayer at the address listed 
110.1   on the county's current year's assessment roll, a notice of 
110.2   proposed property taxes.  
110.3      (b) The commissioner of revenue shall prescribe the form of 
110.4   the notice. 
110.5      (c) The notice must inform taxpayers that it contains the 
110.6   amount of property taxes each taxing authority proposes to 
110.7   collect for taxes payable the following year.  In the case of a 
110.8   town, or in the case of the state determined portion of the 
110.9   school district levy, the final tax amount will be its proposed 
110.10  tax.  The notice must clearly state that each taxing authority, 
110.11  including regional library districts established under section 
110.12  134.201, and including the metropolitan taxing districts as 
110.13  defined in paragraph (i), but excluding all other special taxing 
110.14  districts and towns, will hold a public meeting to receive 
110.15  public testimony on the proposed budget and proposed or final 
110.16  property tax levy, or, in case of a school district, on the 
110.17  current budget and proposed property tax levy unless the taxing 
110.18  authority either:  (1) elects to provide information under 
110.19  subdivision 9; or (2) is exempt under subdivision 6c.  It must 
110.20  clearly state the time and place of each taxing authority's 
110.21  meeting and an address where comments will be received by mail.  
110.22     (d) The notice must state for each parcel: 
110.23     (1) the market value of the property as determined under 
110.24  section 273.11, and used for computing property taxes payable in 
110.25  the following year and for taxes payable in the current year as 
110.26  each appears in the records of the county assessor on November 1 
110.27  of the current year; and, in the case of residential property, 
110.28  whether the property is classified as homestead or 
110.29  nonhomestead.  The notice must clearly inform taxpayers of the 
110.30  years to which the market values apply and that the values are 
110.31  final values; 
110.32     (2) the items listed below, shown separately by county, 
110.33  city or town, state determined school tax net of the education 
110.34  homestead credit under section 273.1382, voter approved school 
110.35  levy, other local school levy, and the sum of the special taxing 
110.36  districts, and as a total of all taxing authorities:  
111.1      (i) the actual tax for taxes payable in the current year; 
111.2      (ii) the tax change due to spending factors, defined as the 
111.3   proposed tax minus the constant spending tax amount; 
111.4      (iii) the tax change due to other factors, defined as the 
111.5   constant spending tax amount minus the actual current year tax; 
111.6   and 
111.7      (iv) the proposed tax amount. 
111.8      In the case of a town or the state determined school tax, 
111.9   the final tax shall also be its proposed tax unless the town 
111.10  changes its levy at a special town meeting under section 
111.11  365.52.  If a school district has certified under section 
111.12  126C.17, subdivision 9, that a referendum will be held in the 
111.13  school district at the November general election, the county 
111.14  auditor must note next to the school district's proposed amount 
111.15  that a referendum is pending and that, if approved by the 
111.16  voters, the tax amount may be higher than shown on the notice.  
111.17  In the case of the city of Minneapolis, the levy for the 
111.18  Minneapolis library board and the levy for Minneapolis park and 
111.19  recreation shall be listed separately from the remaining amount 
111.20  of the city's levy.  In the case of a parcel where tax increment 
111.21  or the fiscal disparities areawide tax under chapter 276A or 
111.22  473F applies, the proposed tax levy on the captured value or the 
111.23  proposed tax levy on the tax capacity subject to the areawide 
111.24  tax must each be stated separately and not included in the sum 
111.25  of the special taxing districts; and 
111.26     (3) the increase or decrease between the total taxes 
111.27  payable in the current year and the total proposed taxes, 
111.28  expressed as a percentage. 
111.29     For purposes of this section, the amount of the tax on 
111.30  homesteads qualifying under the senior citizens' property tax 
111.31  deferral program under chapter 290B is the total amount of 
111.32  property tax before subtraction of the deferred property tax 
111.33  amount. 
111.34     (e) The notice must clearly state that the proposed or 
111.35  final taxes do not include the following: 
111.36     (1) special assessments; 
112.1      (2) levies approved by the voters after the date the 
112.2   proposed taxes are certified, including bond referenda, school 
112.3   district levy referenda, and levy limit increase referenda; 
112.4      (3) amounts necessary to pay cleanup or other costs due to 
112.5   a natural disaster occurring after the date the proposed taxes 
112.6   are certified; 
112.7      (4) amounts necessary to pay tort judgments against the 
112.8   taxing authority that become final after the date the proposed 
112.9   taxes are certified; and 
112.10     (5) the contamination tax imposed on properties which 
112.11  received market value reductions for contamination. 
112.12     (f) Except as provided in subdivision 7, failure of the 
112.13  county auditor to prepare or the county treasurer to deliver the 
112.14  notice as required in this section does not invalidate the 
112.15  proposed or final tax levy or the taxes payable pursuant to the 
112.16  tax levy. 
112.17     (g) If the notice the taxpayer receives under this section 
112.18  lists the property as nonhomestead, and satisfactory 
112.19  documentation is provided to the county assessor by the 
112.20  applicable deadline, and the property qualifies for the 
112.21  homestead classification in that assessment year, the assessor 
112.22  shall reclassify the property to homestead for taxes payable in 
112.23  the following year. 
112.24     (h) In the case of class 4 residential property used as a 
112.25  residence for lease or rental periods of 30 days or more, the 
112.26  taxpayer must either: 
112.27     (1) mail or deliver a copy of the notice of proposed 
112.28  property taxes to each tenant, renter, or lessee; or 
112.29     (2) post a copy of the notice in a conspicuous place on the 
112.30  premises of the property.  
112.31     The notice must be mailed or posted by the taxpayer by 
112.32  November 27 or within three days of receipt of the notice, 
112.33  whichever is later.  A taxpayer may notify the county treasurer 
112.34  of the address of the taxpayer, agent, caretaker, or manager of 
112.35  the premises to which the notice must be mailed in order to 
112.36  fulfill the requirements of this paragraph. 
113.1      (i) For purposes of this subdivision, subdivisions 5a and 
113.2   6, "metropolitan special taxing districts" means the following 
113.3   taxing districts in the seven-county metropolitan area that levy 
113.4   a property tax for any of the specified purposes listed below: 
113.5      (1) metropolitan council under section 473.132, 473.167, 
113.6   473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
113.7      (2) metropolitan airports commission under section 473.667, 
113.8   473.671, or 473.672; and 
113.9      (3) metropolitan mosquito control commission under section 
113.10  473.711. 
113.11     For purposes of this section, any levies made by the 
113.12  regional rail authorities in the county of Anoka, Carver, 
113.13  Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
113.14  398A shall be included with the appropriate county's levy and 
113.15  shall be discussed at that county's public hearing or stated in 
113.16  the county's Internet posting as provided in subdivision 9. 
113.17     (j) If a statutory or home rule charter city or a town has 
113.18  exercised the local levy option provided by section 473.388, 
113.19  subdivision 7, it may include in the notice of its proposed 
113.20  taxes the amount of its proposed taxes attributable to its 
113.21  exercise of the option.  In the first year of the city or town's 
113.22  exercise of this option, the statement shall include an estimate 
113.23  of the reduction of the metropolitan council's tax on the parcel 
113.24  due to exercise of that option.  The metropolitan council's levy 
113.25  shall be adjusted accordingly. 
113.26     Sec. 19.  Minnesota Statutes 1999 Supplement, section 
113.27  275.065, subdivision 5a, is amended to read: 
113.28     Subd. 5a.  [PUBLIC ADVERTISEMENT.] (a) Unless exempt under 
113.29  subdivision 6c, a city that has a population of more than 2,500, 
113.30  county, a metropolitan special taxing district as defined in 
113.31  subdivision 3, paragraph (i), a regional library district 
113.32  established under section 134.201, or school district shall 
113.33  advertise in a newspaper a notice of its intent to: 
113.34     (1) adopt a budget and property tax levy or, in the case of 
113.35  a school district, to review its current budget and proposed 
113.36  property taxes payable in the following year, at a public 
114.1   hearing; or 
114.2      (2) post information as provided in subdivision 9.  
114.3   The notice must be published not less than two business days nor 
114.4   more than six business days before the hearing or the posting of 
114.5   information. 
114.6      The advertisement must be at least one-eighth page in size 
114.7   of a standard-size or a tabloid-size newspaper.  The 
114.8   advertisement must not be placed in the part of the newspaper 
114.9   where legal notices and classified advertisements appear.  The 
114.10  advertisement must be published in an official newspaper of 
114.11  general circulation in the taxing authority.  The newspaper 
114.12  selected must be one of general interest and readership in the 
114.13  community, and not one of limited subject matter.  The 
114.14  advertisement must appear in a newspaper that is published at 
114.15  least once per week.  
114.16     For purposes of this section, the metropolitan special 
114.17  taxing district's advertisement must only be published in the 
114.18  Minneapolis Star and Tribune and the Saint Paul Pioneer Press. 
114.19     (b) The advertisement for school districts, metropolitan 
114.20  special taxing districts, and regional library districts that 
114.21  are not exempt under subdivision 6c and do not elect to post 
114.22  information as provided in subdivision 9 must be in the 
114.23  following form, except that the notice for a school district may 
114.24  include references to the current budget in regard to proposed 
114.25  property taxes. 
114.26                             "NOTICE OF
114.27                      PROPOSED PROPERTY TAXES
114.28                   (School District/Metropolitan
114.29                  Special Taxing District/Regional
114.30                   Library District) of .........
114.31  The governing body of ........ will soon hold budget hearings 
114.32  and vote on the property taxes for (metropolitan special taxing 
114.33  district/regional library district services that will be 
114.34  provided in (year)/school district services that will be 
114.35  provided in (year) and (year)). 
114.36                     NOTICE OF PUBLIC HEARING:
115.1   All concerned citizens are invited to attend a public hearing 
115.2   and express their opinions on the proposed (school 
115.3   district/metropolitan special taxing district/regional library 
115.4   district) budget and property taxes, or in the case of a school 
115.5   district, its current budget and proposed property taxes, 
115.6   payable in the following year.  The hearing will be held on 
115.7   (Month/Day/Year) at (Time) at (Location, Address)." 
115.8      (c) The advertisement for cities and counties that are not 
115.9   exempt under subdivision 6c and do not elect to post information 
115.10  as provided in subdivision 9 must be in the following form. 
115.11                        "NOTICE OF PROPOSED
115.12                  TOTAL BUDGET AND PROPERTY TAXES
115.13  The (city/county) governing body or board of commissioners will 
115.14  hold a public hearing to discuss the budget and to vote on the 
115.15  amount of property taxes to collect for services the 
115.16  (city/county) will provide in (year). 
115.17     
115.18  SPENDING:  The total budget amounts below compare 
115.19  (city's/county's) (year) total actual budget with the amount the 
115.20  (city/county) proposes to spend in (year). 
115.21     
115.22  (Year) Total          Proposed (Year)          Change from
115.23  Actual Budget             Budget               (Year)-(Year)
115.24     
115.25    $.......              $.......                ...%
115.26     
115.27  TAXES:  The property tax amounts below compare that portion of 
115.28  the current budget levied in property taxes in (city/county) for 
115.29  (year) with the property taxes the (city/county) proposes to 
115.30  collect in (year). 
115.31     
115.32  (Year) Property       Proposed (Year)          Change from
115.33      Taxes              Property Taxes         (Year)-(Year)
115.34     
115.35    $.......              $.......                ...% 
115.36     
116.1                      ATTEND THE PUBLIC HEARING
116.2   All (city/county) residents are invited to attend the public 
116.3   hearing of the (city/county) to express your opinions on the 
116.4   budget and the proposed amount of (year) property taxes.  The 
116.5   hearing will be held on: 
116.6                        (Month/Day/Year/Time)
116.7                          (Location/Address)
116.8   If the discussion of the budget cannot be completed, a time and 
116.9   place for continuing the discussion will be announced at the 
116.10  hearing.  You are also invited to send your written comments to: 
116.11                           (City/County)
116.12                        (Location/Address)"
116.13     (d) The advertisement for taxing authorities that elect to 
116.14  post information under subdivision 9 must be in the following 
116.15  form.  
116.16                            "NOTICE OF
116.17                PROPOSED PROPERTY TAX INFORMATION
116.18  The governing body of ........ will provide detailed information 
116.19  on its proposed budget and property taxes for the upcoming 
116.20  calendar year on an Internet Web site.  The address of that Web 
116.21  site is .........  This information is provided in lieu of 
116.22  conducting a public meeting on the budget and proposed property 
116.23  taxes.  A resident of ........ or an owner of property located 
116.24  in ........ may request that a copy of the information provided 
116.25  at the Web site be mailed to the resident or property owner.  
116.26  This information may be requested by contacting: 
116.27                      name (name)
116.28                      at (mailing address)
116.29                      or (telephone number)
116.30                      or (e-mail address)"
116.31     (e) For purposes of this subdivision, the budget amounts 
116.32  listed on the advertisement mean: 
116.33     (1) for cities, the total government fund expenditures, as 
116.34  defined by the state auditor under section 471.6965, less any 
116.35  expenditures for improvements or services that are specially 
116.36  assessed or charged under chapter 429, 430, 435, or the 
117.1   provisions of any other law or charter; and 
117.2      (2) for counties, the total government fund expenditures, 
117.3   as defined by the state auditor under section 375.169, less any 
117.4   expenditures for direct payments to recipients or providers for 
117.5   the human service aids listed below: 
117.6      (i) Minnesota family investment program under chapters 256J 
117.7   and 256K; 
117.8      (ii) medical assistance under sections 256B.041, 
117.9   subdivision 5, and 256B.19, subdivision 1; 
117.10     (iii) general assistance medical care under section 
117.11  256D.03, subdivision 6; 
117.12     (iv) general assistance under section 256D.03, subdivision 
117.13  2; 
117.14     (v) emergency assistance under section 256J.48; 
117.15     (vi) Minnesota supplemental aid under section 256D.36, 
117.16  subdivision 1; 
117.17     (vii) preadmission screening under section 256B.0911, and 
117.18  alternative care grants under section 256B.0913; 
117.19     (viii) general assistance medical care claims processing, 
117.20  medical transportation and related costs under section 256D.03, 
117.21  subdivision 4; 
117.22     (ix) medical transportation and related costs under section 
117.23  256B.0625, subdivisions 17 to 18a; 
117.24     (x) group residential housing under section 256I.05, 
117.25  subdivision 8, transferred from programs in clauses (iv) and 
117.26  (vi); or 
117.27     (xi) any successor programs to those listed in clauses (i) 
117.28  to (x). 
117.29     (e) (f) A city with a population of over 500 but not more 
117.30  than 2,500 must advertise by posted notice as defined in section 
117.31  645.12, subdivision 1.  The advertisement must be posted at the 
117.32  time provided in paragraph (a).  It must be in the form required 
117.33  in paragraph (b). 
117.34     (f) (g) For purposes of this subdivision, the population of 
117.35  a city is the most recent population as determined by the state 
117.36  demographer under section 4A.02. 
118.1      (g) (h) The commissioner of revenue, subject to the 
118.2   approval of the chairs of the house and senate tax committees, 
118.3   shall prescribe the form and format of the advertisement. 
118.4      Sec. 20.  Minnesota Statutes 1998, section 275.065, is 
118.5   amended by adding a subdivision to read: 
118.6      Subd. 6c.  [EXEMPTION FROM PUBLIC HEARING REQUIREMENT.] A 
118.7   taxing authority is exempt from the requirement to hold a public 
118.8   hearing under this section if its total proposed tax does not 
118.9   exceed its total tax payable in the current year by more than 
118.10  one percent. 
118.11     Sec. 21.  Minnesota Statutes 1998, section 275.065, 
118.12  subdivision 8, is amended to read: 
118.13     Subd. 8.  [HEARING.] (a) Notwithstanding any other 
118.14  provision of law, Ramsey county, the city of St. Paul, and 
118.15  independent school district No. 625 are authorized to and, 
118.16  except as provided in paragraph (b), shall hold their initial 
118.17  public hearing jointly.  The hearing must be held on the second 
118.18  Tuesday of December each year.  The advertisement required in 
118.19  subdivision 5a may be a joint advertisement.  The hearing is 
118.20  otherwise subject to the requirements of this section. 
118.21     Ramsey county is authorized to hold an additional initial 
118.22  hearing or hearings as provided under this section, provided 
118.23  that any additional hearings must not conflict with the initial 
118.24  or continuation hearing dates of the other taxing districts.  
118.25  However, if Ramsey county elects not to hold such additional 
118.26  initial hearing or hearings, the joint initial hearing required 
118.27  by this subdivision must be held in a St. Paul location 
118.28  convenient to residents of Ramsey county. 
118.29     (b) Ramsey county, the city of St. Paul, and independent 
118.30  school district No. 625 may each be exempt from the requirement 
118.31  to participate in a joint public hearing under paragraph (a), if 
118.32  that entity qualifies under subdivision 6c or elects to post 
118.33  information under subdivision 9. 
118.34     Sec. 22.  Minnesota Statutes 1998, section 275.065, is 
118.35  amended by adding a subdivision to read: 
118.36     Subd. 9.  [ALTERNATIVE TO HEARING; INFORMATION POSTED ON 
119.1   INTERNET.] A taxing authority that proposes to increase its levy 
119.2   over the tax payable in the current year by no more than the 
119.3   percentage increase in the implicit price deflator may elect to 
119.4   provide information on an Internet Web site as required under 
119.5   this subdivision in lieu of conducting a hearing under 
119.6   subdivision 6 or 6b.  The posted information must include the 
119.7   following information: 
119.8   SPENDING:  The total budget amounts below compare (the taxing 
119.9   authority's) (year) total actual budget with the amount the 
119.10  (taxing authority) proposes to spend in (year). 
119.11     
119.12  (Year) Total          Proposed (Year)          Change from
119.13  Actual Budget             Budget               (Year)-(Year)
119.14    
119.15    $.......              $.......                ...%
119.16     
119.17  TAXES:  The property tax amounts below compare that portion of 
119.18  the current budget levied in property taxes in (the taxing 
119.19  authority) for (year) with the property taxes the (taxing 
119.20  authority) proposes to collect in (year). 
119.21     
119.22  (Year) Property       Proposed (Year)          Change from
119.23      Taxes              Property Taxes         (Year)-(Year)
119.24    
119.25    $.......              $.......                ...% 
119.26     The budget amounts have the meaning provided in subdivision 
119.27  5a, paragraph (e).  The specific purposes for which property tax 
119.28  revenues are being increased must be set forth.  
119.29     The posting must also provide the name, mailing address, 
119.30  telephone number, and e-mail address of an individual who will 
119.31  respond to inquiries about the budget and tax information posted 
119.32  on the Web site.  This information is required to be posted by 
119.33  the first business day after November 28. 
119.34     Sec. 23.  Minnesota Statutes 1998, section 275.066, is 
119.35  amended to read: 
119.36     275.066 [SPECIAL TAXING DISTRICTS; DEFINITION.] 
120.1      For the purposes of property taxation and property tax 
120.2   state aids, the term "special taxing districts" includes the 
120.3   following entities: 
120.4      (1) watershed districts under chapter 103D; 
120.5      (2) sanitary districts under sections 115.18 to 115.37; 
120.6      (3) regional sanitary sewer districts under sections 115.61 
120.7   to 115.67; 
120.8      (4) regional public library districts under section 
120.9   134.201; 
120.10     (5) park districts under chapter 398; 
120.11     (6) regional railroad authorities under chapter 398A; 
120.12     (7) hospital districts under sections 447.31 to 447.38; 
120.13     (8) St. Cloud metropolitan transit commission under 
120.14  sections 458A.01 to 458A.15; 
120.15     (9) Duluth transit authority under sections 458A.21 to 
120.16  458A.37; 
120.17     (10) regional development commissions under sections 
120.18  462.381 to 462.398; 
120.19     (11) housing and redevelopment authorities under sections 
120.20  469.001 to 469.047; 
120.21     (12) port authorities under sections 469.048 to 469.068; 
120.22     (13) economic development authorities under sections 
120.23  469.090 to 469.1081; 
120.24     (14) metropolitan council under sections 473.123 to 
120.25  473.549; 
120.26     (15) metropolitan airports commission under sections 
120.27  473.601 to 473.680; 
120.28     (16) metropolitan mosquito control commission under 
120.29  sections 473.701 to 473.716; 
120.30     (17) Morrison county rural development financing authority 
120.31  under Laws 1982, chapter 437, section 1; 
120.32     (18) Croft Historical Park District under Laws 1984, 
120.33  chapter 502, article 13, section 6; 
120.34     (19) East Lake county medical clinic district under Laws 
120.35  1989, chapter 211, sections 1 to 6; 
120.36     (20) Floodwood area ambulance district under Laws 1993, 
121.1   chapter 375, article 5, section 39; and 
121.2      (21) Middle Mississippi River Watershed Management 
121.3   Organization under sections 103B.211 and 103B.241; and 
121.4      (22) any other political subdivision of the state of 
121.5   Minnesota, excluding counties, school districts, cities, and 
121.6   towns, that has the power to adopt and certify a property tax 
121.7   levy to the county auditor, as determined by the commissioner of 
121.8   revenue. 
121.9      <b>EFFECTIVE DATE:</b>  This section is effective for taxes levied 
121.10  in 2000, payable in 2001, and thereafter. 
121.11     Sec. 24.  Minnesota Statutes 1999 Supplement, section 
121.12  275.71, subdivision 4, is amended to read: 
121.13     Subd. 4.  [PROPERTY TAX LEVY LIMIT.] For taxes levied in 
121.14  1998 and 1999, the property tax levy limit for a local 
121.15  governmental unit is equal to its adjusted levy limit base 
121.16  determined under subdivision 3 plus any additional levy 
121.17  authorized under section 275.73, which is levied against net tax 
121.18  capacity, reduced by the sum of (1) the total amount of aids 
121.19  that the local governmental unit is certified to receive under 
121.20  sections 477A.011 to 477A.014, (2) homestead and agricultural 
121.21  aids it is certified to receive under section 273.1398, (3) 
121.22  local performance aid it is certified to receive under section 
121.23  477A.05, (4) taconite aids under sections 298.28 and 298.282 
121.24  including any aid which was required to be placed in a special 
121.25  fund for expenditure in the next succeeding year but excluding 
121.26  amounts allocated under section 298.28, subdivision 2, paragraph 
121.27  (b), (5) flood loss aid under section 273.1383, and (6) 
121.28  low-income housing aid under sections 477A.06 and 477A.065. 
121.29     <b>EFFECTIVE DATE:</b>  This section is effective for taxes levied 
121.30  in 1999, payable in 2000. 
121.31     Sec. 25.  Minnesota Statutes 1998, section 276.19, 
121.32  subdivision 1, is amended to read: 
121.33     Subdivision 1.  [NOTICE OF OVERPAYMENT.] If an overpayment 
121.34  of property tax arises on a parcel for any reason due to receipt 
121.35  of a payment that exceeds the total amount of the tax required 
121.36  to be paid on the property tax statement, the responsible county 
122.1   official shall promptly notify the payer by regular mail that 
122.2   the overpayment has occurred.  The notice must state the amount 
122.3   of overpayment and identify the parcel on which the overpayment 
122.4   occurred.  The notice must also instruct the payer how to claim 
122.5   the overpayment and advise that the overpayment is subject to 
122.6   forfeiture under this section.  If the name or address of the 
122.7   payer is not known, the notice of unclaimed overpayment must be 
122.8   mailed to the taxpayer of record in the office of the county 
122.9   auditor.  
122.10     <b>EFFECTIVE DATE:</b>  This section is effective for overpayment 
122.11  of taxes made the day following final enactment and thereafter 
122.12  and applies only to taxes levied in 1999, payable in 2000, and 
122.13  thereafter. 
122.14     Sec. 26.  [278.14] [REFUNDS OF MISTAKENLY BILLED TAXES.] 
122.15     Subdivision 1.  [APPLICABILITY.] A county must pay a refund 
122.16  of a mistakenly billed tax as provided in this section.  As used 
122.17  in this section, "mistakenly billed tax" means an amount of 
122.18  property tax that was billed, to the extent the amount billed 
122.19  exceeds the accurate tax amount due to a misclassification of 
122.20  property or a mathematical error in the calculation of the tax, 
122.21  together with any penalty or interest paid on that amount.  This 
122.22  section applies only to taxes payable in the current year and 
122.23  the two prior years.  As used in this section, "mathematical 
122.24  error" is limited to an error in: 
122.25     (1) converting the market value of a property to tax 
122.26  capacity; 
122.27     (2) application of the tax rate to the property's tax 
122.28  capacity; or 
122.29     (3) calculation of or eligibility for a credit. 
122.30     Subd. 2.  [PROCEDURE.] A refund of mistakenly billed tax 
122.31  must be paid upon verification of a claim made in a written 
122.32  application by the owner of the property or upon discovery of 
122.33  the mistakenly billed tax by the county.  Refunds of 
122.34  overpayments will be made as provided in section 278.12. 
122.35     Subd. 3.  [APPEALS.] If the county rejects a claim by a 
122.36  property owner under subdivision 2, it must notify the property 
123.1   owner of that decision within 90 days of receipt of the claim.  
123.2   The property owner may appeal that decision to the tax court 
123.3   within 60 days after receipt of a notice from the county of the 
123.4   decision.  Relief granted by the tax court is limited to current 
123.5   year taxes, and taxes in the two prior years. 
123.6      <b>EFFECTIVE DATE:</b>  This section is effective for overpayment 
123.7   of taxes made the day following final enactment and thereafter 
123.8   and applies only to taxes levied in 1999, payable in 2000, and 
123.9   thereafter. 
123.10     Sec. 27.  Minnesota Statutes 1999 Supplement, section 
123.11  290B.03, subdivision 1, is amended to read: 
123.12     Subdivision 1.  [PROGRAM QUALIFICATIONS.] The 
123.13  qualifications for the senior citizens' property tax deferral 
123.14  program are as follows: 
123.15     (1) the property must be owned and occupied as a homestead 
123.16  by a person 65 years of age or older.  In the case of a married 
123.17  couple, both of the spouses must be at least 65 years old at the 
123.18  time the first property tax deferral is granted, regardless of 
123.19  whether the property is titled in the name of one spouse or both 
123.20  spouses, or titled in another way that permits the property to 
123.21  have homestead status; 
123.22     (2) the total household income of the qualifying 
123.23  homeowners, as defined in section 290A.03, subdivision 5, for 
123.24  the calendar year preceding the year of the initial application 
123.25  may not exceed $60,000; 
123.26     (3) the homestead must have been owned and occupied as the 
123.27  homestead of at least one of the qualifying homeowners for at 
123.28  least 15 years prior to the year the initial application is 
123.29  filed; 
123.30     (4) there are no delinquent property taxes, penalties, or 
123.31  interest on the homesteaded property; 
123.32     (5) there are no delinquent special assessments on the 
123.33  homesteaded property; 
123.34     (6) there are no state or federal tax liens or judgment 
123.35  liens on the homesteaded property; 
123.36     (7) (5) there are no mortgages or other liens on the 
124.1   property that secure future advances, except for those subject 
124.2   to credit limits that result in compliance with clause (8) (6); 
124.3   and 
124.4      (8) (6) the total unpaid balances of debts secured by 
124.5   mortgages and other liens on the property, including unpaid 
124.6   special assessments and delinquent property taxes, penalties, 
124.7   and interest, but not including property taxes payable during 
124.8   the year, does not exceed 30 75 percent of the assessor's 
124.9   estimated market value for the year. 
124.10     Sec. 28.  Minnesota Statutes 1998, section 290B.04, is 
124.11  amended by adding a subdivision to read: 
124.12     Subd. 7.  [PAYMENT OF DELINQUENT TAXES AND 
124.13  ASSESSMENTS.] Upon approval of a senior citizen's initial 
124.14  application, the commissioner of revenue shall pay to the 
124.15  treasurer of the county where the property is located the amount 
124.16  of any delinquent property taxes, penalties, interest, and 
124.17  delinquent special assessments on the property which is the 
124.18  subject of the application. 
124.19     Sec. 29.  Minnesota Statutes 1999 Supplement, section 
124.20  290B.05, subdivision 1, is amended to read: 
124.21     Subdivision 1.  [DETERMINATION BY COMMISSIONER.] The 
124.22  commissioner shall determine each qualifying homeowner's "annual 
124.23  maximum property tax amount" following approval of the 
124.24  homeowner's initial application and following the receipt of a 
124.25  resumption of eligibility certification.  The "annual maximum 
124.26  property tax amount" equals three percent of the homeowner's 
124.27  total household income for the year preceding either the initial 
124.28  application or the resumption of eligibility certification, 
124.29  whichever is applicable.  Following approval of the initial 
124.30  application, the commissioner shall determine the qualifying 
124.31  homeowner's "maximum allowable deferral."  No tax may be 
124.32  deferred relative to the appropriate assessment year for any 
124.33  homeowner whose total household income for the previous year 
124.34  exceeds $60,000.  No tax shall be deferred in any year in which 
124.35  the homeowner does not meet the program qualifications in 
124.36  section 290B.03.  The maximum allowable total deferral is equal 
125.1   to 75 percent of the assessor's estimated market value for the 
125.2   year, less the balance of any mortgage loans and other amounts 
125.3   secured by liens against the property at the time of 
125.4   application, including any unpaid special assessments and any 
125.5   delinquent property taxes, penalties, and interest, but not 
125.6   including property taxes payable during the year. 
125.7      Sec. 30.  Minnesota Statutes 1998, section 290B.05, 
125.8   subdivision 3, is amended to read: 
125.9      Subd. 3.  [CALCULATION OF DEFERRED PROPERTY TAX AMOUNT.] 
125.10  When final property tax amounts for the following year have been 
125.11  determined, the county auditor shall calculate the "deferred 
125.12  property tax amount."  The deferred property tax amount is equal 
125.13  to the lesser of (1) the maximum allowable deferral for the 
125.14  year; or (2) the difference between the total amount of property 
125.15  taxes levied upon the qualifying homestead by all taxing 
125.16  jurisdictions and the maximum property tax amount.  Any special 
125.17  assessments levied by any local unit of government must not be 
125.18  included in the total tax used to calculate the deferred tax 
125.19  amount.  No deferral of the current year's property taxes is 
125.20  allowed if there are any delinquent property taxes or delinquent 
125.21  special assessments for any previous year.  Any tax attributable 
125.22  to new improvements made to the property after the initial 
125.23  application has been approved under section 290B.04, subdivision 
125.24  2, must be excluded when determining any subsequent deferred 
125.25  property tax amount.  The county auditor shall annually, on or 
125.26  before April 15, certify to the commissioner of revenue the 
125.27  property tax deferral amounts determined under this subdivision 
125.28  by property and by owner.  
125.29     Sec. 31.  Minnesota Statutes 1998, section 290B.07, is 
125.30  amended to read: 
125.31     290B.07 [LIEN; DEFERRED PORTION.] 
125.32     (a) Payment by the state to the county treasurer 
125.33  of property taxes, penalties, interest, or special assessments 
125.34  deferred under this section chapter is deemed a loan from the 
125.35  state to the program participant.  The commissioner must compute 
125.36  the interest as provided in section 270.75, subdivision 5, but 
126.1   not to exceed five percent, and maintain records of the total 
126.2   deferred amount and interest for each participant.  Interest 
126.3   shall accrue beginning September 1 of the payable year for which 
126.4   the taxes are deferred.  Any deferral made under this chapter 
126.5   shall not be construed as delinquent property taxes. 
126.6      The lien created under section 272.31 continues to secure 
126.7   payment by the taxpayer, or by the taxpayer's successors or 
126.8   assigns, of the amount deferred, including interest, with 
126.9   respect to all years for which amounts are deferred.  The lien 
126.10  for deferred taxes and interest has the same priority as any 
126.11  other lien under section 272.31, except that liens, including 
126.12  mortgages, recorded or filed prior to the recording or filing of 
126.13  the notice under section 290B.04, subdivision 2, have priority 
126.14  over the lien for deferred taxes and interest.  A seller's 
126.15  interest in a contract for deed, in which a qualifying homeowner 
126.16  is the purchaser or an assignee of the purchaser, has priority 
126.17  over deferred taxes and interest on deferred taxes, regardless 
126.18  of whether the contract for deed is recorded or filed.  The lien 
126.19  for deferred taxes and interest for future years has the same 
126.20  priority as the lien for deferred taxes and interest for the 
126.21  first year, which is always higher in priority than any 
126.22  mortgages or other liens filed, recorded, or created after the 
126.23  notice recorded or filed under section 290B.04, subdivision 2.  
126.24  The county treasurer or auditor shall maintain records of the 
126.25  deferred portion and shall list the amount of deferred taxes for 
126.26  the year and the cumulative deferral and interest for all 
126.27  previous years as a lien against the property.  In any 
126.28  certification of unpaid taxes for a tax parcel, the county 
126.29  auditor shall clearly distinguish between taxes payable in the 
126.30  current year, deferred taxes and interest, and delinquent 
126.31  taxes.  Payment of the deferred portion becomes due and owing at 
126.32  the time specified in section 290B.08.  Upon receipt of the 
126.33  payment, the commissioner shall issue a receipt for it to the 
126.34  person making the payment upon request and shall notify the 
126.35  auditor of the county in which the parcel is located, within ten 
126.36  days, identifying the parcel to which the payment applies.  Upon 
127.1   receipt by the commissioner of revenue of collected funds in the 
127.2   amount of the deferral, the state's loan to the program 
127.3   participant is deemed paid in full. 
127.4      (b) If property for which taxes have been deferred under 
127.5   this chapter forfeits under chapter 281 for nonpayment of a 
127.6   nondeferred property tax amount, or because of nonpayment of 
127.7   amounts previously deferred following a termination under 
127.8   section 290B.08, the lien for the taxes deferred under this 
127.9   chapter, plus interest and costs, shall be canceled by the 
127.10  county auditor as provided in section 282.07.  However, 
127.11  notwithstanding any other law to the contrary, any proceeds from 
127.12  a subsequent sale of the property under chapter 282 or another 
127.13  law, must be used to first reimburse the county's forfeited tax 
127.14  sale fund for any direct costs of selling the property or any 
127.15  costs directly related to preparing the property for sale, and 
127.16  then to reimburse the state for the amount of the canceled 
127.17  lien.  Within 90 days of the receipt of any sale proceed to 
127.18  which the state is entitled under these provisions, the county 
127.19  auditor must pay those funds to the commissioner of revenue by 
127.20  warrant for deposit in the general fund.  No other deposit, use, 
127.21  distribution, or release of gross sale proceeds or receipts may 
127.22  be made by the county until payments sufficient to fully 
127.23  reimburse the state for the canceled lien amount have been 
127.24  transmitted to the commissioner. 
127.25     <b>EFFECTIVE DATE:</b>  This section and sections 24 to 27 apply 
127.26  to all homeowners and all property taxes deferred beginning in 
127.27  payable 2001, including those homeowners who initially qualified 
127.28  under this program for taxes payable in 1999 or 2000, except 
127.29  that if a homeowner did not qualify for any property tax 
127.30  deferral for payable 2000 because of the percentage threshold in 
127.31  Minnesota Statutes, section 290B.03, subdivision 1, paragraph 
127.32  (8), or the prohibition on qualification of owners of property 
127.33  with delinquent taxes or special assessments, and now qualifies 
127.34  for the program with the changes in those provisions, the 
127.35  homeowner may apply to the commissioner by July 1, 2000, and 
127.36  request a retroactive qualification into the program for taxes 
128.1   payable in 2000.  The commissioner of revenue shall notify the 
128.2   county auditor of such eligible taxpayers.  The commissioner 
128.3   shall make payment to the county for the appropriate amount due 
128.4   for taxes payable in 2000, and the county treasurer shall refund 
128.5   the taxpayer for any excess tax amount that the taxpayer has 
128.6   paid to the county. 
128.7      Sec. 32.  Minnesota Statutes 1998, section 290B.08, 
128.8   subdivision 1, is amended to read: 
128.9      Subdivision 1.  [TERMINATION.] (a) The deferral of taxes 
128.10  granted under this chapter terminates when one of the following 
128.11  occurs: 
128.12     (1) the property is sold or transferred; 
128.13     (2) the death of the all qualifying 
128.14  homeowner(s) homeowners; 
128.15     (3) the homeowner notifies the commissioner in writing that 
128.16  the homeowner desires to discontinue the deferral; or 
128.17     (4) the property no longer qualifies as a homestead. 
128.18     (b) A property is not terminated from the program because 
128.19  no deferred property tax amount is determined on the homestead 
128.20  for any given year after the homestead's initial enrollment into 
128.21  the program. 
128.22     <b>EFFECTIVE DATE:</b>  This section is effective for deferrals of 
128.23  property taxes payable in 2001 and thereafter. 
128.24     Sec. 33.  Minnesota Statutes 1998, section 290B.08, 
128.25  subdivision 2, is amended to read: 
128.26     Subd. 2.  [PAYMENT UPON TERMINATION.] Upon the termination 
128.27  of the deferral under subdivision 1, the amount of deferred 
128.28  taxes and, penalties, interest, and special assessments, plus 
128.29  the recording or filing fees under both section 290B.04, 
128.30  subdivision 2, and this subdivision becomes due and payable to 
128.31  the commissioner within 90 days of termination of the deferral 
128.32  for terminations under subdivision 1, paragraph (a), clauses (1) 
128.33  and (2), and within one year of termination of the deferral for 
128.34  terminations under subdivision 1, paragraph (a), clauses (3) and 
128.35  (4).  No additional interest is due on the deferral if timely 
128.36  paid.  On receipt of payment, the commissioner shall within ten 
129.1   days notify the auditor of the county in which the parcel is 
129.2   located, identifying the parcel to which the payment applies and 
129.3   shall remit the recording or filing fees under section 290B.04, 
129.4   subdivision 2, and this subdivision to the auditor.  A notice of 
129.5   termination of deferral, containing the legal description and 
129.6   the recording or filing data for the notice of qualification for 
129.7   deferral under section 290B.04, subdivision 2, shall be prepared 
129.8   and recorded or filed by the county auditor in the same office 
129.9   in which the notice of qualification for deferral under section 
129.10  290B.04, subdivision 2, was recorded or filed, and the county 
129.11  auditor shall mail a copy of the notice of termination to the 
129.12  property owner.  The property owner shall pay the recording or 
129.13  filing fees.  Upon recording or filing of the notice of 
129.14  termination of deferral, the notice of qualification for 
129.15  deferral under section 290B.04, subdivision 2, and the lien 
129.16  created by it are discharged.  If the deferral is not timely 
129.17  paid, the penalty, interest, lien, forfeiture, and other rules 
129.18  for the collection of ad valorem property taxes apply. 
129.19     Sec. 34.  Minnesota Statutes 1998, section 290B.09, 
129.20  subdivision 2, is amended to read: 
129.21     Subd. 2.  [APPROPRIATION.] An amount sufficient to pay the 
129.22  total amount of property tax determined under subdivision 1, 
129.23  plus any amounts paid under section 290B.04, subdivision 7, is 
129.24  annually appropriated from the general fund to the commissioner 
129.25  of revenue. 
129.26     <b>EFFECTIVE DATE:</b>  This section and section 30 apply to all 
129.27  homeowners and all property taxes deferred beginning in payable 
129.28  2001, including those homeowners who initially qualified under 
129.29  this program for taxes payable in 1999 or 2000, except that if a 
129.30  homeowner did not qualify for any property tax deferral for 
129.31  payable 2000 because of the percentage threshold in Minnesota 
129.32  Statutes, section 290B.03, subdivision 1, paragraph (8), or the 
129.33  prohibition on qualification of owners of property with 
129.34  delinquent taxes or special assessments, and now qualifies for 
129.35  the program with the changes in those provisions, the homeowner 
129.36  may apply to the commissioner by July 1, 2000, and request a 
130.1   retroactive qualification into the program for taxes payable in 
130.2   2000.  The commissioner of revenue shall notify the county 
130.3   auditor of such eligible taxpayers.  The commissioner shall make 
130.4   payment to the county for the appropriate amount due for taxes 
130.5   payable in 2000, and the county treasurer shall refund the 
130.6   taxpayer for any excess tax amount that the taxpayer has paid to 
130.7   the county. 
130.8      Sec. 35.  Minnesota Statutes 1998, section 429.011, 
130.9   subdivision 2a, is amended to read: 
130.10     Subd. 2a.  [MUNICIPALITY.] "Municipality" also includes a 
130.11  county in the case of construction, reconstruction, or 
130.12  improvement of a county state-aid highway or county highway as 
130.13  defined in section 160.02 including curbs and gutters and storm 
130.14  sewers and includes; a county exercising its powers and duties 
130.15  under section 444.075, subdivision 1; and a county for expenses 
130.16  not paid for under section 403.113, subdivision 3, paragraph 
130.17  (b), clause (3). 
130.18     Sec. 36.  Minnesota Statutes 1998, section 429.011, 
130.19  subdivision 5, is amended to read: 
130.20     Subd. 5.  [IMPROVEMENT.] "Improvement" means any type of 
130.21  improvement made under authority granted by section 429.021, 
130.22  and.  In the case of a county, improvement is limited to: 
130.23     (1) the construction, reconstruction, or improvement of a 
130.24  county state-aid highway or county highway including curbs and 
130.25  gutters and storm sewers; and 
130.26     (2) the purchase, installation, or replacement of signs, 
130.27  posts, and markers for addressing related to the operation of 
130.28  enhanced 911 telephone service. 
130.29     Sec. 37.  Minnesota Statutes 1998, section 429.021, 
130.30  subdivision 1, is amended to read: 
130.31     Subdivision 1.  [IMPROVEMENTS AUTHORIZED.] The council of a 
130.32  municipality shall have power to make the following improvements:
130.33     (1) To acquire, open, and widen any street, and to improve 
130.34  the same by constructing, reconstructing, and maintaining 
130.35  sidewalks, pavement, gutters, curbs, and vehicle parking strips 
130.36  of any material, or by grading, graveling, oiling, or otherwise 
131.1   improving the same, including the beautification thereof and 
131.2   including storm sewers or other street drainage and connections 
131.3   from sewer, water, or similar mains to curb lines. 
131.4      (2) To acquire, develop, construct, reconstruct, extend, 
131.5   and maintain storm and sanitary sewers and systems, including 
131.6   outlets, holding areas and ponds, treatment plants, pumps, lift 
131.7   stations, service connections, and other appurtenances of a 
131.8   sewer system, within and without the corporate limits. 
131.9      (3) To construct, reconstruct, extend, and maintain steam 
131.10  heating mains. 
131.11     (4) To install, replace, extend, and maintain street lights 
131.12  and street lighting systems and special lighting systems. 
131.13     (5) To acquire, improve, construct, reconstruct, extend, 
131.14  and maintain water works systems, including mains, valves, 
131.15  hydrants, service connections, wells, pumps, reservoirs, tanks, 
131.16  treatment plants, and other appurtenances of a water works 
131.17  system, within and without the corporate limits. 
131.18     (6) To acquire, improve and equip parks, open space areas, 
131.19  playgrounds, and recreational facilities within or without the 
131.20  corporate limits. 
131.21     (7) To plant trees on streets and provide for their 
131.22  trimming, care, and removal. 
131.23     (8) To abate nuisances and to drain swamps, marshes, and 
131.24  ponds on public or private property and to fill the same. 
131.25     (9) To construct, reconstruct, extend, and maintain dikes 
131.26  and other flood control works. 
131.27     (10) To construct, reconstruct, extend, and maintain 
131.28  retaining walls and area walls. 
131.29     (11) To acquire, construct, reconstruct, improve, alter, 
131.30  extend, operate, maintain, and promote a pedestrian skyway 
131.31  system.  Such improvement may be made upon a petition pursuant 
131.32  to section 429.031, subdivision 3.  
131.33     (12) To acquire, construct, reconstruct, extend, operate, 
131.34  maintain, and promote underground pedestrian concourses. 
131.35     (13) To acquire, construct, improve, alter, extend, 
131.36  operate, maintain, and promote public malls, plazas or 
132.1   courtyards. 
132.2      (14) To construct, reconstruct, extend, and maintain 
132.3   district heating systems.  
132.4      (15) To construct, reconstruct, alter, extend, operate, 
132.5   maintain, and promote fire protection systems in existing 
132.6   buildings, but only upon a petition pursuant to section 429.031, 
132.7   subdivision 3.  
132.8      (16) To acquire, construct, reconstruct, improve, alter, 
132.9   extend, and maintain highway sound barriers. 
132.10     (17) To improve, construct, reconstruct, extend, and 
132.11  maintain gas and electric distribution facilities owned by a 
132.12  municipal gas or electric utility. 
132.13     (18) To purchase, install, and replace signs, posts, and 
132.14  other markers for addressing related to the operation of 
132.15  enhanced 911 telephone service. 
132.16     Sec. 38.  Minnesota Statutes 1998, section 429.031, 
132.17  subdivision 1, is amended to read: 
132.18     Subdivision 1.  [PREPARATION OF PLANS, NOTICE OF HEARING.] 
132.19  (a) Before the municipality awards a contract for an improvement 
132.20  or orders it made by day labor, or before the municipality may 
132.21  assess any portion of the cost of an improvement to be made 
132.22  under a cooperative agreement with the state or another 
132.23  political subdivision for sharing the cost of making the 
132.24  improvement, the council shall hold a public hearing on the 
132.25  proposed improvement following two publications in the newspaper 
132.26  of a notice stating the time and place of the hearing, the 
132.27  general nature of the improvement, the estimated cost, and the 
132.28  area proposed to be assessed.  The two publications must be a 
132.29  week apart, and the hearing must be at least three days after 
132.30  the second publication.  Not less than ten days before the 
132.31  hearing, notice of the hearing must also be mailed to the owner 
132.32  of each parcel within the area proposed to be assessed with a 
132.33  reasonable estimate of the amount to be assessed against each 
132.34  parcel, but failure to give mailed notice or any defects in the 
132.35  notice does not invalidate the proceedings.  For the purpose of 
132.36  giving mailed notice, owners are those shown as owners on the 
133.1   records of the county auditor or, in any county where tax 
133.2   statements are mailed by the county treasurer, on the records of 
133.3   the county treasurer; but other appropriate records may be used 
133.4   for this purpose.  For properties that are tax exempt or subject 
133.5   to taxation on a gross earnings basis and are not listed on the 
133.6   records of the county auditor or the county treasurer, the 
133.7   owners may be ascertained by any practicable means, and mailed 
133.8   notice must be given them as provided in this subdivision.  
133.9      (b) Before the adoption of a resolution ordering the 
133.10  improvement, the council shall secure from the city engineer or 
133.11  some other competent person of its selection a report advising 
133.12  it in a preliminary way as to whether the proposed improvement 
133.13  is necessary, cost-effective, and feasible and as to whether it 
133.14  should best be made as proposed or in connection with some other 
133.15  improvement.  The report must also include the estimated cost of 
133.16  the improvement as recommended with a reasonable estimate of the 
133.17  amount to be assessed against each parcel.  No error or omission 
133.18  in the report invalidates the proceeding unless it materially 
133.19  prejudices the interests of an owner. 
133.20     (c) If the report is not prepared by an employee of a 
133.21  municipality, the compensation for preparing the report under 
133.22  this subdivision must be based on the following factors: 
133.23     (1) the time and labor required; 
133.24     (2) the experience and knowledge of the preparer; 
133.25     (3) the complexity and novelty of the problems involved; 
133.26  and 
133.27     (4) the extent of the responsibilities assumed. 
133.28     (d) The compensation must not be based primarily on a 
133.29  percentage of the estimated cost of the improvement. 
133.30     (e) The council may also take other steps prior to the 
133.31  hearing, including, among other things, the preparation of plans 
133.32  and specifications and the advertisement for bids that will in 
133.33  its judgment provide helpful information in determining the 
133.34  desirability and feasibility of the improvement.  
133.35     (f) The hearing may be adjourned from time to time, and a 
133.36  resolution ordering the improvement may be adopted at any time 
134.1   within six months after the date of the hearing by vote of a 
134.2   majority of all members of the council when the improvement has 
134.3   been petitioned for by the owners of not less than 35 percent in 
134.4   frontage of the real property abutting on the streets named in 
134.5   the petition as the location of the improvement.  When there has 
134.6   been no such petition, the resolution may be adopted only by 
134.7   vote of four-fifths of all members of the council; provided that 
134.8   if the mayor of the municipality is a member of the council but 
134.9   has no vote or votes only in case of a tie, the mayor is not 
134.10  deemed to be a member for the purpose of determining a 
134.11  four-fifths majority vote.  
134.12     (g) The resolution ordering the improvement may reduce, but 
134.13  not increase, the extent of the improvement as stated in the 
134.14  notice of hearing. 
134.15     Sec. 39.  Minnesota Statutes 1998, section 469.040, is 
134.16  amended by adding a subdivision to read: 
134.17     Subd. 5.  [DESIGNATED HOUSING CORPORATIONS.] Property 
134.18  located within the exterior boundaries of the White Earth Indian 
134.19  reservation that is owned by the tribe's designated housing 
134.20  entity as defined in United States Code, title 25, section 4103, 
134.21  paragraph 21, and that is a housing project or a housing 
134.22  development project, as defined in section 469.002, subdivisions 
134.23  13 and 15, is exempt from all real and personal property taxes 
134.24  of the city, county, state, or any political subdivision 
134.25  thereof, but the property is subject to subdivision 3.  A copy 
134.26  of those portions of the annual reports submitted on behalf of 
134.27  the housing entity to the secretary of the United States 
134.28  Department of Housing and Urban Development for the project that 
134.29  contain information sufficient to determine the amount due under 
134.30  subdivision 3 satisfies the reporting requirements of 
134.31  subdivision 3 for the project. 
134.32     Sec. 40.  Minnesota Statutes 1999 Supplement, section 
134.33  473.39, subdivision 1g, is amended to read: 
134.34     Subd. 1g.  [OBLIGATIONS; 2000-2002.] In addition to the 
134.35  authority in subdivisions 1a, 1b, 1c, 1d, and 1e, the council 
134.36  may issue certificates of indebtedness, bonds, or other 
135.1   obligations under this section in an amount not exceeding 
135.2   $36,000,000 $55,400,000, which may be used for capital 
135.3   expenditures, other than for construction, maintenance, or 
135.4   operation of light rail transit, as prescribed in the council's 
135.5   transit capital improvement program and for related costs, 
135.6   including the costs of issuance and sale of the obligations.  
135.7   The funds must be proportionally spent on capital improvement 
135.8   projects as recommended by the regional transit capital 
135.9   evaluation committee.  This section applies in the counties of 
135.10  Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. 
135.11     Sec. 41.  Minnesota Statutes 1998, section 473.39, is 
135.12  amended by adding a subdivision to read: 
135.13     Subd. 1h.  [OBLIGATIONS.] (a) After July 1, 2001, in 
135.14  addition to the authority in subdivisions 1a, 1b, 1c, 1d, 1e, 
135.15  and 1g, the council may issue certificates of indebtedness, 
135.16  bonds, or other obligations under this section for capital 
135.17  expenditures as prescribed in the council's regional transit 
135.18  master plan and transit capital improvement program and for 
135.19  related costs including the costs of issuance and sale of the 
135.20  obligations.  The amount of the obligations issued under this 
135.21  subdivision in any year may not exceed an amount equal to the 
135.22  following limitations, except as provided in this subdivision: 
135.23     (1) for 2002, the limitation is $40,000,000; and 
135.24     (2) for each subsequent year, the limitation is equal to 
135.25  the previous year's limitation calculated under this subdivision 
135.26  adjusted for inflation using the United States Department of 
135.27  Labor's Bureau of Labor Statistics Minneapolis-St. Paul Consumer 
135.28  Price Index for All Urban Consumers (CPI-U) for the previous 
135.29  taxes payable year or three percent, whichever amount is less. 
135.30     (b) In any year in which the council does not issue 
135.31  obligations totaling the limitation calculated under this 
135.32  subdivision, the council's limitation for the following year is 
135.33  increased by the difference between the previous year's 
135.34  limitation calculated under this subdivision and the amount 
135.35  issued in the previous year, or 20 percent of the previous 
135.36  year's limitation, whichever is less.  Any limitation increase 
136.1   carried forward under this subdivision is available only in the 
136.2   following year and is not a permanent increase in the annual 
136.3   limitation calculated under this subdivision. 
136.4      Sec. 42.  Minnesota Statutes 1999 Supplement, section 
136.5   477A.011, subdivision 36, is amended to read: 
136.6      Subd. 36.  [CITY AID BASE.] (a) Except as provided in 
136.7   paragraphs (b) to (k) (n), "city aid base" means, for each city, 
136.8   the sum of the local government aid and equalization aid it was 
136.9   originally certified to receive in calendar year 1993 under 
136.10  Minnesota Statutes 1992, section 477A.013, subdivisions 3 and 5, 
136.11  and the amount of disparity reduction aid it received in 
136.12  calendar year 1993 under Minnesota Statutes 1992, section 
136.13  273.1398, subdivision 3. 
136.14     (b) For aids payable in 1996 and thereafter, a city that in 
136.15  1992 or 1993 transferred an amount from governmental funds to 
136.16  its sewer and water fund, which amount exceeded its net levy for 
136.17  taxes payable in the year in which the transfer occurred, has a 
136.18  "city aid base" equal to the sum of (i) its city aid base, as 
136.19  calculated under paragraph (a), and (ii) one-half of the 
136.20  difference between its city aid distribution under section 
136.21  477A.013, subdivision 9, for aids payable in 1995 and its city 
136.22  aid base for aids payable in 1995. 
136.23     (c) The city aid base for any city with a population less 
136.24  than 500 is increased by $40,000 for aids payable in calendar 
136.25  year 1995 and thereafter, and the maximum amount of total aid it 
136.26  may receive under section 477A.013, subdivision 9, paragraph 
136.27  (c), is also increased by $40,000 for aids payable in calendar 
136.28  year 1995 only, provided that: 
136.29     (i) the average total tax capacity rate for taxes payable 
136.30  in 1995 exceeds 200 percent; 
136.31     (ii) the city portion of the tax capacity rate exceeds 100 
136.32  percent; and 
136.33     (iii) its city aid base is less than $60 per capita. 
136.34     (d) The city aid base for a city is increased by $20,000 in 
136.35  1998 and thereafter and the maximum amount of total aid it may 
136.36  receive under section 477A.013, subdivision 9, paragraph (c), is 
137.1   also increased by $20,000 in calendar year 1998 only, provided 
137.2   that: 
137.3      (i) the city has a population in 1994 of 2,500 or more; 
137.4      (ii) the city is located in a county, outside of the 
137.5   metropolitan area, which contains a city of the first class; 
137.6      (iii) the city's net tax capacity used in calculating its 
137.7   1996 aid under section 477A.013 is less than $400 per capita; 
137.8   and 
137.9      (iv) at least four percent of the total net tax capacity, 
137.10  for taxes payable in 1996, of property located in the city is 
137.11  classified as railroad property. 
137.12     (e) The city aid base for a city is increased by $200,000 
137.13  in 1999 and thereafter and the maximum amount of total aid it 
137.14  may receive under section 477A.013, subdivision 9, paragraph 
137.15  (c), is also increased by $200,000 in calendar year 1999 only, 
137.16  provided that: 
137.17     (i) the city was incorporated as a statutory city after 
137.18  December 1, 1993; 
137.19     (ii) its city aid base does not exceed $5,600; and 
137.20     (iii) the city had a population in 1996 of 5,000 or more. 
137.21     (f) The city aid base for a city is increased by $450,000 
137.22  in 1999 to 2008 and the maximum amount of total aid it may 
137.23  receive under section 477A.013, subdivision 9, paragraph (c), is 
137.24  also increased by $450,000 in calendar year 1999 only, provided 
137.25  that: 
137.26     (i) the city had a population in 1996 of at least 50,000; 
137.27     (ii) its population had increased by at least 40 percent in 
137.28  the ten-year period ending in 1996; and 
137.29     (iii) its city's net tax capacity for aids payable in 1998 
137.30  is less than $700 per capita. 
137.31     (g) Beginning in 2002, the city aid base for a city is 
137.32  equal to the sum of its city aid base in 2001 and the amount of 
137.33  additional aid it was certified to receive under section 477A.06 
137.34  in 2001.  For 2002 only, the maximum amount of total aid a city 
137.35  may receive under section 477A.013, subdivision 9, paragraph 
137.36  (c), is also increased by the amount it was certified to receive 
138.1   under section 477A.06 in 2001. 
138.2      (h) The city aid base for a city is increased by $150,000 
138.3   for aids payable in 2000 and thereafter, and the maximum amount 
138.4   of total aid it may receive under section 477A.013, subdivision 
138.5   9, paragraph (c), is also increased by $150,000 in calendar year 
138.6   2000 only, provided that: 
138.7      (1) the city has a population that is greater than 1,000 
138.8   and less than 2,500; 
138.9      (2) its commercial and industrial percentage for aids 
138.10  payable in 1999 is greater than 45 percent; and 
138.11     (3) the total market value of all commercial and industrial 
138.12  property in the city for assessment year 1999 is at least 15 
138.13  percent less than the total market value of all commercial and 
138.14  industrial property in the city for assessment year 1998. 
138.15     (i) The city aid base for a city is increased by $200,000 
138.16  in 2000 and thereafter, and the maximum amount of total aid it 
138.17  may receive under section 477A.013, subdivision 9, paragraph 
138.18  (c), is also increased by $200,000 in calendar year 2000 only, 
138.19  provided that: 
138.20     (1) the city had a population in 1997 of 2,500 or more; 
138.21     (2) the net tax capacity of the city used in calculating 
138.22  its 1999 aid under section 477A.013 is less than $650 per 
138.23  capita; 
138.24     (3) the pre-1940 housing percentage of the city used in 
138.25  calculating 1999 aid under section 477A.013 is greater than 12 
138.26  percent; 
138.27     (4) the 1999 local government aid of the city under section 
138.28  477A.013 is less than 20 percent of the amount that the formula 
138.29  aid of the city would have been if the need increase percentage 
138.30  was 100 percent; and 
138.31     (5) the city aid base of the city used in calculating aid 
138.32  under section 477A.013 is less than $7 per capita. 
138.33     (j) The city aid base for a city is increased by $225,000 
138.34  in calendar years 2000 to 2002 and the maximum amount of total 
138.35  aid it may receive under section 477A.013, subdivision 9, 
138.36  paragraph (c), is also increased by $225,000 in calendar year 
139.1   2000 only, provided that: 
139.2      (1) the city had a population of at least 5,000; 
139.3      (2) its population had increased by at least 50 percent in 
139.4   the ten-year period ending in 1997; 
139.5      (3) the city is located outside of the Minneapolis-St. Paul 
139.6   metropolitan statistical area as defined by the United States 
139.7   Bureau of the Census; and 
139.8      (4) the city received less than $30 per capita in aid under 
139.9   section 477A.013, subdivision 9, for aids payable in 1999. 
139.10     (k) The city aid base for a city is increased by $102,000 
139.11  in 2000 and thereafter, and the maximum amount of total aid it 
139.12  may receive under section 477A.013, subdivision 9, paragraph 
139.13  (c), is also increased by $102,000 in calendar year 2000 only, 
139.14  provided that: 
139.15     (1) the city has a population in 1997 of 2,000 or more; 
139.16     (2) the net tax capacity of the city used in calculating 
139.17  its 1999 aid under section 477A.013 is less than $455 per 
139.18  capita; 
139.19     (3) the net levy of the city used in calculating 1999 aid 
139.20  under section 477A.013 is greater than $195 per capita; and 
139.21     (4) the 1999 local government aid of the city under section 
139.22  477A.013 is less than 38 percent of the amount that the formula 
139.23  aid of the city would have been if the need increase percentage 
139.24  was 100 percent. 
139.25     (l) In addition to the increase the city receives under 
139.26  section 43, the city aid base for a city is increased by $23,000 
139.27  in 2001 and thereafter, and the maximum amount of total aid it 
139.28  may receive under section 477A.013, subdivision 9, paragraph 
139.29  (c), is also increased by $32,000 in calendar year 2001 only, 
139.30  provided that: 
139.31     (1) the city has a population in 1998 that is greater than 
139.32  200 but less than 500; 
139.33     (2) the city's revenue need used in calculating aids 
139.34  payable in 2000 was greater than $200 per capita; 
139.35     (3) the city net tax capacity for the city, used in 
139.36  calculating aids available in 2000 was equal to or less than 
140.1   $200 per capita; 
140.2      (4) the city aid base of the city used in calculating aid 
140.3   under section 477A.013 is less than $65 per capita; and 
140.4      (5) the city's formula aid for aids payable in 2000 was 
140.5   greater than zero. 
140.6      (m) In addition to the increase the city receives under 
140.7   section 43, the city aid base for a city is increased by 
140.8   $100,000 in 2001 and thereafter, and the maximum amount of total 
140.9   aid it may receive under section 477A.013, subdivision 9, 
140.10  paragraph (c), is also increased by $184,000 in calendar year 
140.11  2001 only, provided that: 
140.12     (1) the net tax capacity of the city used in calculating 
140.13  its 2000 aid under section 477A.013 is less than $810 per 
140.14  capita; 
140.15     (2) the population of the city declined more than two 
140.16  percent between 1988 and 1998; 
140.17     (3) the net levy of the city used in calculating 2000 aid 
140.18  under section 477A.013 is greater than $240 per capita; and 
140.19     (4) the city received less than $36 per capita in aid under 
140.20  section 477A.013, subdivision 9, for aids payable in 2000. 
140.21     (n) The city aid base for a city is increased by $7,200 in 
140.22  2001 and thereafter, and the maximum amount of total aid it may 
140.23  receive under section 477A.013, subdivision 9, paragraph (c), is 
140.24  also increased by $7,200 in calendar year 2001 only, provided 
140.25  that: 
140.26     (1) the city had a population in 1998 that is greater than 
140.27  200 but less than 500; 
140.28     (2) the city's commercial industrial percentage used in 
140.29  calculating aids payable in 2000 was less than ten percent; 
140.30     (3) more than 25 percent of the city's population was 60 
140.31  years old or older according to the 1990 census; 
140.32     (4) the city aid base of the city used in calculating aid 
140.33  under section 477A.013 is less than $15 per capita; and 
140.34     (5) the city's formula aid for aids payable in 2000 was 
140.35  greater than zero. 
140.36     <b>EFFECTIVE DATE:</b>  This section is effective beginning with 
141.1   aids payable in 2001 and thereafter. 
141.2      Sec. 43.  Minnesota Statutes 1998, section 477A.011, is 
141.3   amended by adding a subdivision to read: 
141.4      Subd. 38.  [TEMPORARY BASE ADJUSTMENT.] (a) The city aid 
141.5   base for a city is increased as provided in paragraph (b) in 
141.6   2001 and 2002 only, and the maximum amount of total aid it may 
141.7   receive under section 477A.013, subdivision 9, paragraph (c), is 
141.8   also increased as provided in paragraph (b) in calendar year 
141.9   2001 only, provided that: 
141.10     (1) it had a population in 1999 of 5,000 or less; 
141.11     (2) the per capita net tax capacity of the city calculated 
141.12  using its 1999 population and 1999 net tax capacity is equal to 
141.13  or less than 110 percent of the average 1999 per capita net tax 
141.14  capacity for all cities; and 
141.15     (3) the 2001 local government aid of the city under section 
141.16  477A.013 after reductions made under sections 273.1399, 
141.17  subdivision 5; and 477A.014, subdivision 5, but before 
141.18  adjustment under this subdivision is less than 64 percent of the 
141.19  amount that the formula aid of the city would have been if the 
141.20  need increase percentage was 100 percent. 
141.21     (b) The adjustment is equal to the positive difference, if 
141.22  any, between: 
141.23     (1) 64 percent of the amount that the formula aid of the 
141.24  city would have been for aid payable in 2001 if the need 
141.25  increase percentage was 100 percent; and 
141.26     (2) the 2001 local government aid of the city under section 
141.27  477A.013 after reductions made under sections 273.1399, 
141.28  subdivision 5, and 477A.014, subdivision 5, but before 
141.29  adjustment under this subdivision. 
141.30     Sec. 44.  Minnesota Statutes 1998, section 477A.0121, 
141.31  subdivision 4, is amended to read: 
141.32     Subd. 4.  [PUBLIC DEFENDER COSTS.] Each calendar year, 1.5 
141.33  percent of the total appropriation for this section, other than 
141.34  the amount appropriated under section 477A.03, subdivision 2, 
141.35  paragraph (b)(ii), shall be retained by the commissioner of 
141.36  revenue to make reimbursements to the commissioner of finance 
142.1   for payments made under section 611.27.  The reimbursements 
142.2   shall be to defray the additional costs associated with 
142.3   court-ordered counsel under section 611.27.  Any retained 
142.4   amounts not used for reimbursement in a year shall be included 
142.5   in the next distribution of county criminal justice aid that is 
142.6   certified to the county auditors for the purpose of property tax 
142.7   reduction for the next taxes payable year.  
142.8      Sec. 45.  Minnesota Statutes 1998, section 477A.0121, is 
142.9   amended by adding a subdivision to read: 
142.10     Subd. 4a.  [USE OF INCREASED FUNDING.] (a) The distribution 
142.11  formula in subdivision 3 does not apply to $5,000,000 of the aid 
142.12  provided under section 477A.03, subdivision 2, paragraph (b)(ii).
142.13     (b) $1,000,000 of the aid provided under section 477A.03, 
142.14  subdivision 2, paragraph (b)(ii), is to be used to increase the 
142.15  number of probation officers managing intensive supervised 
142.16  release caseloads.  The commissioner of corrections shall 
142.17  distribute these funds proportionately based on current unmet 
142.18  needs, including distribution to areas of the state that are not 
142.19  currently served by an intensive supervised release caseload. 
142.20     (c) $4,000,000 of the aid provided under section 477A.03, 
142.21  subdivision 2, paragraph (b)(ii), is to be used for enhanced 
142.22  supervision of adult felony sex offenders by employing 
142.23  additional probation officers to reduce the caseloads of 
142.24  probation officers supervising sex offenders on probation or 
142.25  supervised release.  The commissioner of corrections shall 
142.26  determine statewide eligibility for these funds according to the 
142.27  formula contained in section 401.10.  Each Community Corrections 
142.28  Act jurisdiction and the probation and supervised release unit 
142.29  of the department of corrections shall submit to the 
142.30  commissioner of corrections an analysis of need along with a 
142.31  plan to meet these needs and reduce adult felony sex offender 
142.32  caseloads.  Upon approval of the plans, the non-Community 
142.33  Corrections Act portion of these funds shall be appropriated to 
142.34  the department of corrections and the distribution shall be 
142.35  based on statewide need.  The Community Corrections Act funds 
142.36  shall be disbursed as grants to each Community Corrections Act 
143.1   jurisdiction.  These appropriations may not be used to supplant 
143.2   existing state or county probation officer positions. 
143.3      Sec. 46.  [477A.0123] [CHARITY CARE AID.] 
143.4      Subdivision 1.  [PURPOSE.] The purpose of charity care aid 
143.5   is to prevent or reduce the reliance on county property taxes to 
143.6   meet the cost of providing medical care to individuals who are 
143.7   indigent and who do not reside in the county. 
143.8      Subd. 2.  [QUALIFICATION.] A county qualifies for payment 
143.9   in 2001 and 2002 only under this section if it contains a 
143.10  hospital that has a medical assistance disproportionate 
143.11  population adjustment as determined under section 256.969, 
143.12  subdivision 9, greater than 16 percent. 
143.13     Subd. 3.  [REPORTS BY HOSPITALS AND COUNTIES.] (a) By June 
143.14  1 of 2000 and 2001, a hospital described in subdivision 2 must 
143.15  file a report with the county in which it is located setting 
143.16  forth its audited financial statements and a schedule setting 
143.17  forth the aggregate amount of charity care for the previous 
143.18  calendar year that meets the following criteria: 
143.19     (1) the patient is from a county other than the county in 
143.20  which the hospital is located; and 
143.21     (2) the hospital has made a preliminary determination that: 
143.22     (i) the patient is not eligible for any public health care 
143.23  program or it cannot be determined whether the person is 
143.24  eligible for any public health care program; and 
143.25     (ii) the person is uninsured or it cannot be determined if 
143.26  the person is uninsured or the person has insufficient resources 
143.27  to pay the cost of services delivered by the hospital. 
143.28     (b) By July 1 of 2000 and 2001, each county must report to 
143.29  the commissioner of revenue the total amount of charity care 
143.30  reported to it by hospitals under this subdivision.  
143.31     Subd. 4.  [AMOUNT OF AID.] (a) Subject to the limitation in 
143.32  paragraph (b), payment to a county under this section is equal 
143.33  to the aggregate amount of charity care, as reported under 
143.34  subdivision 3. 
143.35     (b) The total of all payments under this section each year 
143.36  may not exceed $10,000,000.  If the amounts reported under 
144.1   subdivision 3 for all counties exceeds $10,000,000 for a year, 
144.2   the distributions to each county must be allocated in proportion 
144.3   to the total amount of uncompensated care reported to the 
144.4   commissioner by the county so that the total of the payments for 
144.5   the year does not exceed $10,000,000. 
144.6      Subd. 5.  [PAYMENT DATES.] The aid amounts must be paid as 
144.7   provided in section 477A.015. 
144.8      Subd. 6.  [USE OF FUNDS.] Each county that receives a 
144.9   payment under this section must remit all charity care aid funds 
144.10  to hospitals described in subdivision 2 that apply to the county 
144.11  for reimbursement.  If the aid a county receives is less than 
144.12  the total amount of uncompensated care reported by eligible 
144.13  hospitals in the county, the aid amounts remitted to the 
144.14  hospitals must be proportional to the amounts reported. 
144.15     Subd. 7.  [REPORT TO THE COMMISSIONER.] By March 15 of the 
144.16  year following the year when the aid was received, each county 
144.17  that receives the aid must file a report with the commissioner 
144.18  of revenue describing how charity care aids were spent, and 
144.19  verifying that they were paid to hospitals described in 
144.20  subdivision 2 for charity care purposes for individuals who do 
144.21  not reside in the county. 
144.22     Subd. 8.  [NOTICE TO COUNTIES.] The commissioner of revenue 
144.23  shall annually notify the governing body of each county, 
144.24  providing information, to the extent available to the 
144.25  commissioner, regarding the amount of reimbursements paid under 
144.26  this section attributable to care provided to residents of that 
144.27  county. 
144.28     Subd. 9.  [APPROPRIATIONS.] The amounts sufficient to make 
144.29  the payments under this section are appropriated from the 
144.30  general fund to the commissioner of revenue. 
144.31     <b>EFFECTIVE DATE:</b>  This section is effective for aids payable 
144.32  in 2001 and 2002. 
144.33     Sec. 47.  Minnesota Statutes 1999 Supplement, section 
144.34  477A.03, subdivision 2, is amended to read: 
144.35     Subd. 2.  [ANNUAL APPROPRIATION.] (a) A sum sufficient to 
144.36  discharge the duties imposed by sections 477A.011 to 477A.014 is 
145.1   annually appropriated from the general fund to the commissioner 
145.2   of revenue.  
145.3      (b)(i) Aid payments to counties under section 477A.0121 are 
145.4   limited to $20,265,000 in 1996.  Aid payments to counties under 
145.5   section 477A.0121 are limited to $27,571,625 in 1997.  For aid 
145.6   payable in 1998 and thereafter, the total aids paid under 
145.7   section 477A.0121 are the amounts certified to be paid in the 
145.8   previous year, adjusted for inflation as provided under 
145.9   subdivision 3.  
145.10     (ii) Aid payments to counties under section 477A.0121 are 
145.11  further increased by an additional $10,000,000 in 2001 and 2002 
145.12  only. 
145.13     (c)(i) For aids payable in 1998 and thereafter, the total 
145.14  aids paid to counties under section 477A.0122 are the amounts 
145.15  certified to be paid in the previous year, adjusted for 
145.16  inflation as provided under subdivision 3. 
145.17     (ii) Aid payments to counties under section 477A.0122 in 
145.18  2000 are further increased by an additional $20,000,000 in 2000. 
145.19     (d) Aid payments to cities in 1999 under section 477A.013, 
145.20  subdivision 9, are limited to $380,565,489.  For aids payable in 
145.21  2000 and 2001, the total aids paid under section 477A.013, 
145.22  subdivision 9, are the amounts certified to be paid in the 
145.23  previous year, adjusted for inflation as provided under 
145.24  subdivision 3.  For aids payable in 2002 2003, the total aids 
145.25  paid under section 477A.013, subdivision 9, are the amounts 
145.26  certified to be paid in the previous year, adjusted for 
145.27  inflation as provided under subdivision 3, and increased by the 
145.28  amount certified to be paid in 2001 under section 477A.06.  For 
145.29  aids payable in 2003 and thereafter, the total aids paid under 
145.30  section 477A.013, subdivision 9, are the amounts certified to be 
145.31  paid in the previous year, adjusted for inflation as provided 
145.32  under subdivision 3.  The additional amount authorized under 
145.33  subdivision 4 is not included when calculating the appropriation 
145.34  limits under this paragraph. 
145.35     Sec. 48.  Minnesota Statutes 1998, section 477A.03, is 
145.36  amended by adding a subdivision to read: 
146.1      Subd. 5.  [2001 AND 2002 ADJUSTMENT.] The appropriation 
146.2   under subdivision 2 for aid payable in 2001 is increased by 
146.3   $6,700,000.  This amount is included in the base appropriation 
146.4   subject to the inflation adjustment under subdivision 3 for aid 
146.5   payable in 2002 only. 
146.6      Sec. 49.  Minnesota Statutes 1999 Supplement, section 
146.7   477A.06, subdivision 1, is amended to read: 
146.8      Subdivision 1.  [ELIGIBILITY.] (a) For assessment years 
146.9   1998, 1999, and 2000 and 2001, for all class 4d property on 
146.10  which construction was begun before January 1, 1999, the 
146.11  assessor shall determine the difference between the actual net 
146.12  tax capacity and the net tax capacity that would be determined 
146.13  for the property if the class rates for assessment year 1997 
146.14  were in effect. 
146.15     (b) In calendar years 2001 and 2002, each city that is an 
146.16  impacted community shall be eligible for aid equal to (i) the 
146.17  amount by which the difference determined in paragraph (a) for 
146.18  the corresponding assessment year exceeds one percent of the 
146.19  city's total taxable net tax capacity for taxes payable in 1998, 
146.20  multiplied by (ii) the city government's average local tax rate 
146.21  for taxes payable in 1998.  
146.22     (b) (c) In calendar years 1999, 2000, and 2001 and 2002, 
146.23  each city that is not an impacted community shall be eligible 
146.24  for aid equal to (i) the amount by which the sum of the 
146.25  differences determined in clause paragraph (a) for the 
146.26  corresponding assessment year exceeds two 1.5 percent of the 
146.27  city's total taxable net tax capacity for taxes payable in 1998, 
146.28  multiplied by (ii) the city government's average local tax rate 
146.29  for taxes payable in 1998. 
146.30     (d) For purposes of this section, "impacted community" 
146.31  means a home rule or statutory city that meets all of the 
146.32  following requirements:  
146.33     (1) the city has at least 250 multifamily housing units, 
146.34  excluding duplexes, converted duplexes, triplexes, senior 
146.35  assisted living facilities, and student housing; 
146.36     (2) the city has at least 25 percent of its multifamily 
147.1   housing units classified as class 4d property; and 
147.2      (3) the city meets the 1.5 percent requirement for aid 
147.3   payments under paragraph (c).  
147.4      <b>EFFECTIVE DATE:</b>  This section is effective for aid paid in 
147.5   calendar years 2001 and 2002. 
147.6      Sec. 50.  Minnesota Statutes 1998, section 477A.06, 
147.7   subdivision 2, is amended to read: 
147.8      Subd. 2.  [CERTIFICATION.] (a) The county assessor shall 
147.9   notify the commissioner of revenue of the amount determined 
147.10  under subdivision 1, paragraph (b), clause (i), for any city 
147.11  that is an impacted community by June 30 of the assessment year, 
147.12  in a form prescribed by the commissioner.  
147.13     (b) The county assessor shall notify the commissioner of 
147.14  revenue of the amount determined under subdivision 1, 
147.15  paragraph (b) (c), clause (i), for any city that is not an 
147.16  impacted community which qualifies for aid under this section by 
147.17  June 30 of the assessment year, in a form prescribed by the 
147.18  commissioner.  
147.19     (c) The commissioner shall notify each city of its 
147.20  qualifying aid amount by August 15 of the assessment year.  
147.21     <b>EFFECTIVE DATE:</b>  This section is effective for aid paid in 
147.22  calendar years 2001 and 2002. 
147.23     Sec. 51.  Minnesota Statutes 1998, section 477A.06, 
147.24  subdivision 3, is amended to read: 
147.25     Subd. 3.  [APPROPRIATION; PAYMENT.] (a) The commissioner 
147.26  shall pay each city its qualifying aid amount on or before July 
147.27  20 of each year.  An amount sufficient to pay the aid authorized 
147.28  under this section is appropriated to the commissioner of 
147.29  revenue from the property tax reform account in fiscal years 
147.30  2000 and 2001, and from the general fund in fiscal year 2002. 
147.31     (b) For fiscal years 2001 and 2002, the amount of aid 
147.32  appropriated under this section may not 
147.33  exceed $1,500,000 $2,425,000 each year. 
147.34     (c) If the total amount of aid that would otherwise be 
147.35  payable under the formula in this section exceeds the maximum 
147.36  allowed under paragraph (b), the amount of aid for each city is 
148.1   reduced proportionately to equal the limit. 
148.2      Sec. 52.  Minnesota Statutes 1998, section 477A.11, 
148.3   subdivision 1, is amended to read: 
148.4      Subdivision 1.  [TERMS.] For the purpose of Laws 1979, 
148.5   Chapter 303, Article 8, Sections 1 to 5 sections 477A.11 to 
148.6   477A.145, the terms defined in this section have the meanings 
148.7   given them. 
148.8      <b>EFFECTIVE DATE:</b>  This section applies to payments made in 
148.9   calendar year 2001 and thereafter. 
148.10     Sec. 53.  Minnesota Statutes 1998, section 477A.12, is 
148.11  amended to read: 
148.12     477A.12 [ANNUAL APPROPRIATIONS; LANDS ELIGIBLE; 
148.13  CERTIFICATION OF ACREAGE.] 
148.14     (a) There is As an offset for expenses incurred by counties 
148.15  and towns in support of natural resources lands, the following 
148.16  amounts are annually appropriated to the commissioner of natural 
148.17  resources from the general fund for payment to counties within 
148.18  the state an amount equal to transfer to the commissioner of 
148.19  revenue.  The commissioner of revenue shall pay the transferred 
148.20  funds to counties as required by sections 477A.11 to 477A.145.  
148.21  The amounts are: 
148.22     (1) for acquired natural resources land, $3, as adjusted 
148.23  for inflation under section 477A.145, multiplied by the total 
148.24  number of acres of acquired natural resources land or, beginning 
148.25  July 1, 1996, at the county's option three-fourths of one 
148.26  percent of the appraised value of all acquired natural resources 
148.27  land in the county, whichever is greater; 
148.28     (2) 75 cents, as adjusted for inflation under section 
148.29  477A.145, multiplied by the number of acres of 
148.30  county-administered other natural resources land; and 
148.31     (3) 37.5 cents, as adjusted for inflation under section 
148.32  477A.145, multiplied by the number of acres of 
148.33  commissioner-administered other natural resources land located 
148.34  in each county as of July 1 of each year prior to the payment 
148.35  year. 
148.36     (b) Lands for which payments in lieu are made pursuant to 
149.1   section 97A.061, subdivision 3, and Laws 1973, chapter 567, 
149.2   shall not be eligible for payments under this section.  Each 
149.3   county auditor shall certify to the department of natural 
149.4   resources during July of each year prior to the payment year the 
149.5   number of acres of county-administered other natural resources 
149.6   land within the county.  The department of natural resources 
149.7   may, in addition to the certification of acreage, require 
149.8   descriptive lists of land so certified.  The commissioner of 
149.9   natural resources shall determine and certify to the 
149.10  commissioner of revenue by March 1 of the payment year:  
149.11     (1) the number of acres and most recent appraised value of 
149.12  acquired natural resources land and within each county; 
149.13     (2) the number of acres of commissioner-administered 
149.14  natural resources land within each county; and 
149.15     (3) the number of acres of county-administered other 
149.16  natural resources land within each county, based on the reports 
149.17  filed by each county auditor with the commissioner of natural 
149.18  resources. 
149.19     The commissioner of revenue shall determine the 
149.20  distributions provided for in this section using the number of 
149.21  acres and appraised values certified by the commissioner of 
149.22  natural resources by March 1 of the payment year. 
149.23     (c) For the purposes of this section, the appraised value 
149.24  of acquired natural resources land is the purchase price for the 
149.25  first five years after acquisition.  The appraised value of 
149.26  acquired natural resources land received as a donation is the 
149.27  value determined for the commissioner of natural resources by a 
149.28  licensed appraiser, or the county assessor's estimated market 
149.29  value if no appraisal is done.  The appraised value must be 
149.30  determined by the county assessor every five years after the 
149.31  land is acquired. 
149.32     <b>EFFECTIVE DATE:</b>  This section applies to payments made in 
149.33  calendar year 2001 and thereafter. 
149.34     Sec. 54.  Minnesota Statutes 1998, section 477A.13, is 
149.35  amended to read: 
149.36     477A.13 [TIME OF PAYMENT, DEDUCTIONS.] 
150.1      Payments to the counties shall of the amounts determined 
150.2   under section 477A.12 must be made by the commissioner of 
150.3   revenue from the general fund during the month of July of the 
150.4   year next following certification.  There shall be deducted from 
150.5   amounts paid any amounts paid to a county or township during the 
150.6   preceding year pursuant to sections 97A.061, subdivisions 1 and 
150.7   2, and 272.68, subdivision 3, with respect to the lands 
150.8   certified pursuant to section 477A.12 at the time provided in 
150.9   section 477A.015 for the first installment of local government 
150.10  aid. 
150.11     <b>EFFECTIVE DATE:</b>  This section applies to payments made in 
150.12  calendar year 2001 and thereafter. 
150.13     Sec. 55.  Minnesota Statutes 1998, section 477A.14, is 
150.14  amended to read: 
150.15     477A.14 [USE OF FUNDS.] 
150.16     Forty Except as provided in section 97A.061, subdivision 5, 
150.17  40 percent of the total payment to the county shall be deposited 
150.18  in the county general revenue fund to be used to provide 
150.19  property tax levy reduction.  The remainder shall be distributed 
150.20  by the county in the following priority:  
150.21     (a) 37.5 cents, as adjusted for inflation under section 
150.22  477A.145, for each acre of county-administered other natural 
150.23  resources land shall be deposited in a resource development fund 
150.24  to be created within the county treasury for use in resource 
150.25  development, forest management, game and fish habitat 
150.26  improvement, and recreational development and maintenance of 
150.27  county-administered other natural resources land.  Any county 
150.28  receiving less than $5,000 annually for the resource development 
150.29  fund may elect to deposit that amount in the county general 
150.30  revenue fund; 
150.31     (b) From the funds remaining, within 30 days of receipt of 
150.32  the payment to the county, the county treasurer shall pay each 
150.33  organized township 30 cents per, as adjusted for inflation under 
150.34  section 477A.145, for each acre of acquired natural resources 
150.35  land and 7.5 cents per, as adjusted for inflation under section 
150.36  477A.145, for each acre of other natural resources land located 
151.1   within its boundaries.  Payments for natural resources lands not 
151.2   located in an organized township shall be deposited in the 
151.3   county general revenue fund.  Payments to counties and townships 
151.4   pursuant to this paragraph shall be used to provide property tax 
151.5   levy reduction, except that of the payments for natural 
151.6   resources lands not located in an organized township, the county 
151.7   may allocate the amount determined to be necessary for 
151.8   maintenance of roads in unorganized townships.  Provided that, 
151.9   if the total payment to the county pursuant to section 477A.12 
151.10  is not sufficient to fully fund the distribution provided for in 
151.11  this clause, the amount available shall be distributed to each 
151.12  township and the county general revenue fund on a pro rata 
151.13  basis; and 
151.14     (c) Any remaining funds shall be deposited in the county 
151.15  general revenue fund.  Provided that, if the distribution to the 
151.16  county general revenue fund exceeds $35,000, the excess shall be 
151.17  used to provide property tax levy reduction. 
151.18     <b>EFFECTIVE DATE:</b>  This section applies to payments made in 
151.19  calendar year 2001 and thereafter. 
151.20     Sec. 56.  [477A.145] [INFLATION ADJUSTMENT.] 
151.21     In 2001 and each year thereafter, the amounts required to 
151.22  be adjusted for inflation in sections 477A.12 and 477A.14 shall 
151.23  be increased to an amount equal to:  (1) the amount before the 
151.24  inflation adjustment multiplied by (2) one plus the percentage 
151.25  increase in the implicit price deflator for government 
151.26  consumption expenditures and gross investment for state and 
151.27  local governments prepared by the Bureau of Economic Analysis of 
151.28  the United States Department of Commerce for the period starting 
151.29  with 1980 and ending with the calendar year prior to the year in 
151.30  which aid is paid. 
151.31     <b>EFFECTIVE DATE:</b>  This section applies to payments made in 
151.32  calendar year 2001 and thereafter. 
151.33     Sec. 57.  Minnesota Statutes 1999 Supplement, section 
151.34  505.08, subdivision 3, is amended to read: 
151.35     Subd. 3.  [PREMATURE REFERENCE TO PLAT; FORFEITURE.] Any 
151.36  person who shall dispose of, or lease, or offer to sell any land 
152.1   included in a plat by reference to the plat before the same is 
152.2   recorded, shall forfeit to the county $100 for each lot, or part 
152.3   of a lot, so disposed of, or leased, or offered; and any 
152.4   official, land surveyor, or person whose duty it is to comply 
152.5   with any of the provisions of this chapter, shall forfeit not 
152.6   less than $100 for each month during which compliance is 
152.7   delayed.  All forfeitures under this chapter shall be recovered 
152.8   in an action brought in the name of the county.  Notwithstanding 
152.9   any provisions of this subdivision to the contrary, this 
152.10  subdivision shall not apply to an offer to sell or lease a unit 
152.11  in a proposed common interest community as defined in chapter 
152.12  515B. 
152.13     Sec. 58.  Laws 1995, First Special Session chapter 3, 
152.14  article 15, section 25, is amended to read: 
152.15     Sec. 25.  [HOMESTEAD AND AGRICULTURAL CREDIT ADJUSTMENT.] 
152.16     (a) For the computation of homestead and agricultural aid 
152.17  for taxes payable in 1996, the commissioner of revenue shall 
152.18  reduce a school district's homestead and agricultural aid by an 
152.19  amount equal to the lesser of:  (1) 25 percent of the amount of 
152.20  the district's homestead and agricultural aid for calendar year 
152.21  1995; or (2) an amount equal to one percent times the district's 
152.22  adjusted net tax capacity for assessment year 1994. 
152.23     (b) Prior to the computation of homestead and agricultural 
152.24  aid for taxes payable in 1997, the commissioner of revenue shall 
152.25  reduce the school district's homestead and agricultural aid by 
152.26  an amount equal to the lesser of:  (1) 50 percent of the amount 
152.27  of the district's homestead and agricultural aid for calendar 
152.28  year 1995; or (2) an amount equal to one percent times the 
152.29  district's adjusted net tax capacity for assessment year 1994. 
152.30     (c) Prior to the computation of homestead and agricultural 
152.31  aid for taxes payable in 1998, the commissioner of revenue shall 
152.32  reduce a school district's homestead and agricultural aid by an 
152.33  amount equal to the lesser of:  (1) 75 percent of the amount of 
152.34  the district's homestead and agricultural aid for calendar year 
152.35  1995; or (2) an amount equal to one percent times the district's 
152.36  adjusted net tax capacity for assessment year 1994. 
153.1      (d) Prior to the computation of homestead and agricultural 
153.2   aid for taxes payable in 1999, the commissioner of revenue shall 
153.3   reduce a school district's homestead and agricultural aid by an 
153.4   amount equal to the lesser of:  (1) the amount of the district's 
153.5   homestead and agricultural aid for calendar year 1995; or (2) an 
153.6   amount equal to one percent times the district's adjusted net 
153.7   tax capacity for assessment year 1994. 
153.8      (e) Prior to the computation of homestead and agricultural 
153.9   aid for taxes payable in 2000 and later years, the commissioner 
153.10  of revenue shall reduce a school district's homestead and 
153.11  agricultural aid by an amount equal to the lesser of:  (1) any 
153.12  remaining amount of the district's homestead and agricultural 
153.13  aid; or (2) an amount equal to one percent times the district's 
153.14  adjusted net tax capacity for assessment year 1994. 
153.15     (f) Prior to the computation of homestead and agricultural 
153.16  credit aid for taxes payable in 2001 and later years, the 
153.17  commissioner of revenue shall reduce that portion of a school 
153.18  district's homestead and agricultural credit aid first paid to a 
153.19  district in calendar year 2000 or an earlier calendar year by an 
153.20  amount equal to the lesser of:  (1) any remaining amount of the 
153.21  portion of the district's homestead and agricultural credit aid 
153.22  first paid to a district in calendar year 2000 or an earlier 
153.23  calendar year; or (2) an amount equal to one percent times the 
153.24  district's adjusted net tax capacity for assessment year 1994. 
153.25     Sec. 59.  [TEMPORARY LOCAL GOVERNMENT AID INCREASE FOR 
153.26  TOWNS.] 
153.27     Subdivision 1.  [AID INCREASE.] (a) The total aid a town 
153.28  may receive under Minnesota Statutes, sections 477A.011 to 
153.29  477A.014, is increased by $75,000 in calendar year 2000 only if 
153.30  the town meets all of the following conditions: 
153.31     (1) it is located outside of a metropolitan county as 
153.32  defined in Minnesota Statutes, section 473.121, subdivision 4; 
153.33     (2) it is located in a county that does not contain a city 
153.34  of the first class; 
153.35     (3) its local tax rate for taxes levied in 1992 was at 
153.36  least .022; 
154.1      (4) its population in 1998 was at least 3,000; and 
154.2      (5) it incurred legal costs related to a municipal 
154.3   incorporation proceeding under Minnesota Statutes, chapter 414, 
154.4   prior to the termination of the municipal board. 
154.5      (b) The increased payment under paragraph (a) must not be 
154.6   included in calculating local government aid payments to a town 
154.7   under Minnesota Statutes, section 477A.013, subdivision 1, in 
154.8   calendar year 2001, and thereafter.  The increased payment must 
154.9   not be included in the calculation of any other aids paid under 
154.10  another law or of any limitations on levies or expenditures. 
154.11     <b>EFFECTIVE DATE:</b>  This section is effective for aids payable 
154.12  in calendar year 2000 only. 
154.13     Sec. 60.  [CAPITOL REGION WATERSHED DISTRICT LEVY LIMIT.] 
154.14     The capitol region watershed district managers may levy an 
154.15  annual ad valorem tax of 0.02418 percent of taxable market value 
154.16  or $200,000, whichever is less, under Minnesota Statutes, 
154.17  section 103D.905, subdivision 3, notwithstanding the levy limits 
154.18  in that subdivision. 
154.19     <b>EFFECTIVE DATE:</b>  This section is effective for taxes levied 
154.20  in 2000, payable in 2001, and thereafter. 
154.21     Sec. 61.  [EVELETH-GILBERT JOINT RECREATION BOARD TAX.] 
154.22     The Eveleth-Gilbert joint recreation board may levy a tax 
154.23  on the taxable property situated in the territory of independent 
154.24  school district No. 2154, Eveleth-Gilbert, in accordance with 
154.25  this section.  Property in territory in the school district may 
154.26  be made subject to the tax permitted by this section by the 
154.27  agreement of the governing body or town board of the city or 
154.28  town where it is located.  The agreement may be by resolution of 
154.29  a governing body or town board or by a joint powers agreement 
154.30  pursuant to Minnesota Statutes, section 471.59.  If levied, the 
154.31  tax is in addition to all other taxes on the property subject to 
154.32  it that are permitted to be levied for park and recreation 
154.33  purposes by the cities and towns other than taxes levied for the 
154.34  support of the joint recreation board.  The tax must be 
154.35  disregarded in the calculation of all other rate or per capita 
154.36  tax levy limitations imposed by charter.  A city or town may 
155.1   withdraw its agreement to future taxes by notice to the 
155.2   recreation board and the county auditor unless provided 
155.3   otherwise by a joint powers agreement.  The tax shall be 
155.4   collected by the St. Louis county auditor and treasurer and paid 
155.5   directly to the Eveleth-Gilbert joint recreation board.  This 
155.6   section applies in the cities of Eveleth and Gilbert and in the 
155.7   town of Fayal, all in St. Louis county. 
155.8      Sec. 62.  [LAKE OF THE WOODS AND KOOCHICHING COUNTIES; 
155.9   EXPENDITURES FOR ROAD AND BRIDGE PURPOSES.] 
155.10     (a) Notwithstanding Minnesota Statutes, section 163.06, 
155.11  subdivisions 4 and 5, the county board of Lake of the Woods 
155.12  county, by resolution, may expend the proceeds of the levy under 
155.13  Minnesota Statutes, section 163.06, in any organized or 
155.14  unorganized township or portion thereof in the county. 
155.15     (b) Notwithstanding Minnesota Statutes, section 163.06, 
155.16  subdivisions 4 and 5, the county board of Koochiching county, by 
155.17  resolution, may expend the proceeds of the levy under Minnesota 
155.18  Statutes, section 163.06, in any organized or unorganized 
155.19  township or portion thereof in the county. 
155.20     <b>EFFECTIVE DATES:</b>  This section is effective for Lake of the 
155.21  Woods county upon approval by and compliance with Minnesota 
155.22  Statutes, section 645.021, subdivision 3.  This section is 
155.23  effective for Koochiching county upon approval by and compliance 
155.24  with Minnesota Statutes, section 645.021, subdivision 3. 
155.25     Sec. 63.  [ST. LOUIS COUNTY; CAPITAL IMPROVEMENT PLAN 
155.26  DEFINITION.] 
155.27     For St. Louis county, the St. Louis county heritage and 
155.28  arts center is included in the definition of "capital 
155.29  improvement" in Minnesota Statutes, section 373.40, subdivision 
155.30  1. 
155.31     <b>EFFECTIVE DATE:</b>  This section is effective upon approval by 
155.32  the governing body of St. Louis county, and compliance with 
155.33  Minnesota Statutes, section 645.021, subdivision 3. 
155.34     Sec. 64.  [STUDY OF TAXATION OF FOREST LAND.] 
155.35     Subdivision 1.  [AUTHORIZATION.] The commissioner of 
155.36  revenue, in cooperation with the Minnesota forest resources 
156.1   council, shall study the taxation of forest land in this state.  
156.2   The study shall include a review of the current application of 
156.3   property taxes to these lands and a review and comparison with 
156.4   other forest land tax policies.  It shall also include 
156.5   recommendations for changes in tax policy: 
156.6      (1) to encourage forest productivity; 
156.7      (2) to maintain land in forest cover; 
156.8      (3) to encourage the application of sustainable site level 
156.9   forest management guidelines; 
156.10     (4) to address impacts on local government revenues; and 
156.11     (5) for changes in tax rates. 
156.12  The study shall be completed and transmitted to the chairs of 
156.13  the house and senate tax committees by December 1, 2000. 
156.14     Subd. 2.  [APPROPRIATION.] $50,000 is appropriated from the 
156.15  general fund in fiscal year 2000 to the commissioner of revenue 
156.16  for completion of the study required in this section.  This 
156.17  appropriation is available until December 31, 2000. 
156.18                             ARTICLE 10
156.19                         LOCAL DEVELOPMENT
156.20     Section 1.  Minnesota Statutes 1998, section 238.08, 
156.21  subdivision 3, is amended to read: 
156.22     Subd. 3.  [MUNICIPAL OPERATION.] Nothing in this chapter 
156.23  shall be construed to limit any municipality from the right to 
156.24  construct, purchase, and operate a cable communications 
156.25  system systems, or, to operate facilities and channels for 
156.26  community television, including, but not limited to, public, 
156.27  educational, and governmental access and local origination 
156.28  programming.  Any municipal system, including the operation of 
156.29  community television by a municipality, shall be subject to this 
156.30  chapter to the same extent as would any nonpublic cable 
156.31  communications system. 
156.32     Sec. 2.  Minnesota Statutes 1998, section 428A.11, is 
156.33  amended by adding a subdivision to read: 
156.34     Subd. 7.  [AUTHORITY.] "Authority" means an economic 
156.35  development authority or housing and redevelopment authority 
156.36  created pursuant to section 469.003, 469.004, or 469.091. 
157.1      Sec. 3.  Minnesota Statutes 1998, section 428A.11, is 
157.2   amended by adding a subdivision to read: 
157.3      Subd. 8.  [IMPLEMENTING ENTITY.] "Implementing entity" 
157.4   means the city or authority designated in the enabling ordinance 
157.5   as responsible for implementing and administering the housing 
157.6   improvement area. 
157.7      Sec. 4.  Minnesota Statutes 1998, section 428A.13, 
157.8   subdivision 1, is amended to read: 
157.9      Subdivision 1.  [ORDINANCE.] The governing body of the city 
157.10  may adopt an ordinance establishing a one or more housing 
157.11  improvement area areas.  The ordinance must specifically 
157.12  describe the portion of the city to be included in the area, the 
157.13  basis for the imposition of the fees, and the number of years 
157.14  the fee will be in effect.  In addition, the ordinance must 
157.15  include findings that without the housing improvement area, the 
157.16  proposed improvements could not be made by the condominium 
157.17  associations or housing unit owners, and the designation is 
157.18  needed to maintain and preserve the housing units within the 
157.19  housing improvement area.  The ordinance shall designate the 
157.20  implementing entity.  The ordinance may not be adopted until a 
157.21  public hearing has been held regarding the ordinance.  The 
157.22  ordinance may be amended by the governing body of the city, 
157.23  provided the governing body complies with the public hearing 
157.24  notice provisions of subdivision 2.  Within 30 days after 
157.25  adoption of the ordinance under this subdivision, the governing 
157.26  body shall send a copy of the ordinance to the commissioner of 
157.27  revenue. 
157.28     Sec. 5.  Minnesota Statutes 1998, section 428A.13, 
157.29  subdivision 3, is amended to read: 
157.30     Subd. 3.  [PROPOSED HOUSING IMPROVEMENTS.] At the public 
157.31  hearing held under subdivision 2, the city proposed implementing 
157.32  entity shall provide a preliminary listing of the housing 
157.33  improvements to be made in the area.  The listing shall identify 
157.34  those improvements, if any, that are proposed to be made to all 
157.35  or a portion of the common elements of a condominium.  The 
157.36  listing shall also identify those housing units that have 
158.1   completed the proposed housing improvements and are proposed to 
158.2   be exempted from a portion of the fee.  In preparing the list 
158.3   the city proposed implementing entity shall consult with the 
158.4   residents of the area and the condominium associations. 
158.5      Sec. 6.  Minnesota Statutes 1998, section 428A.14, 
158.6   subdivision 1, is amended to read: 
158.7      Subdivision 1.  [AUTHORITY.] Fees may be imposed by the 
158.8   city implementing entity on the housing units within the housing 
158.9   improvement area at a rate, term, or amount sufficient to 
158.10  produce revenue required to provide housing improvements in the 
158.11  area to reimburse the implementing entity for advances made to 
158.12  pay for the housing improvements or to pay principal of, 
158.13  interest on, and premiums, if any, on bonds issued by the 
158.14  implementing entity under section 428A.16.  The fee can be 
158.15  imposed on the basis of the tax capacity of the housing unit, or 
158.16  the total amount of square footage of the housing unit, or a 
158.17  method determined by the council and specified in the resolution.
158.18  Before the imposition of the fees, a hearing must be held and 
158.19  notice must be published in the official newspaper at least 
158.20  seven days before the hearing and shall be mailed at least seven 
158.21  days before the hearing to any housing unit owner subject to a 
158.22  fee.  For purposes of this section, the notice must also include:
158.23     (1) a statement that all interested persons will be given 
158.24  an opportunity to be heard at the hearing regarding a proposed 
158.25  housing improvement fee; 
158.26     (2) the estimated cost of improvements including 
158.27  administrative costs to be paid for in whole or in part by the 
158.28  fee imposed under the ordinance; 
158.29     (3) the amount to be charged against the particular 
158.30  property; 
158.31     (4) the right of the property owner to prepay the entire 
158.32  fee; 
158.33     (5) the number of years the fee will be in effect; and 
158.34     (6) a statement that the petition requirements of section 
158.35  428A.12 have either been met or do not apply to the proposed fee.
158.36     Within six months of the public hearing, the city 
159.1   implementing entity may adopt a resolution imposing a fee within 
159.2   the area not exceeding the amount expressed in the notice issued 
159.3   under this section. 
159.4      Prior to adoption of the resolution approving the fee, the 
159.5   condominium associations located in the housing improvement area 
159.6   shall submit to the city implementing entity a financial plan 
159.7   prepared by an independent third party, acceptable to the city 
159.8   implementing entity and associations, that provides for the 
159.9   associations to finance maintenance and operation of the common 
159.10  elements in the condominium and a long-range plan to conduct and 
159.11  finance capital improvements. 
159.12     Sec. 7.  Minnesota Statutes 1998, section 428A.15, is 
159.13  amended to read: 
159.14     428A.15 [COLLECTION OF FEES.] 
159.15     The city implementing entity may provide for the collection 
159.16  of the housing improvement fees according to the terms of 
159.17  section 428A.05. 
159.18     Sec. 8.  Minnesota Statutes 1998, section 428A.16, is 
159.19  amended to read: 
159.20     428A.16 [BONDS.] 
159.21     At any time after a contract for the construction of all or 
159.22  part of an improvement authorized under sections 428A.11 to 
159.23  428A.20 has been entered into or the work has been ordered, the 
159.24  governing body of the city implementing entity may issue 
159.25  obligations in the amount it deems necessary to defray in whole 
159.26  or in part the expense incurred and estimated to be incurred in 
159.27  making the improvement, including every item of cost from 
159.28  inception to completion and all fees and expenses incurred in 
159.29  connection with the improvement or the financing. 
159.30     The obligations are payable primarily out of the proceeds 
159.31  of the fees imposed under section 428A.14, or from any other 
159.32  special assessments or revenues available to be pledged for 
159.33  their payment under charter or statutory authority, or from two 
159.34  or more of those sources.  The governing body of the city, or if 
159.35  the governing bodies are the same or consist of identical 
159.36  membership, the authority may, by resolution adopted prior to 
160.1   the sale of obligations, pledge the full faith, credit, and 
160.2   taxing power of the city to assure bonds issued by it to ensure 
160.3   payment of the principal and interest if the proceeds of the 
160.4   fees in the area are insufficient to pay the principal and 
160.5   interest.  The obligations must be issued in accordance with 
160.6   chapter 475, except that an election is not required, and the 
160.7   amount of the obligations are not included in determination of 
160.8   the net debt of the city under the provisions of any law or 
160.9   charter limiting debt. 
160.10     Sec. 9.  Minnesota Statutes 1998, section 428A.17, is 
160.11  amended to read: 
160.12     428A.17 [ADVISORY BOARD.] 
160.13     The governing body of the city implementing entity may 
160.14  create and appoint an advisory board for the housing improvement 
160.15  area in the city to advise the governing body implementing 
160.16  entity in connection with the planning and construction of 
160.17  housing improvements.  In appointing the board, the council 
160.18  implementing entity shall consider for membership members of 
160.19  condominium associations located in the housing improvement 
160.20  area.  The advisory board shall make recommendations to 
160.21  the governing body implementing entity to provide improvements 
160.22  or impose fees within the housing improvement area.  Before the 
160.23  adoption of a proposal by the governing body implementing entity 
160.24  to provide improvements within the housing improvement area, the 
160.25  advisory board of the housing improvement area shall have an 
160.26  opportunity to review and comment upon the proposal. 
160.27     Sec. 10.  Minnesota Statutes 1998, section 428A.19, is 
160.28  amended to read: 
160.29     428A.19 [ANNUAL REPORTS.] 
160.30     Each condominium association located within the housing 
160.31  improvement area must, by August 15 annually, submit a copy of 
160.32  its audited financial statements to the city implementing entity.
160.33  The city may also, as part of the enabling ordinance, require 
160.34  the submission of other relevant information from the 
160.35  associations. 
160.36     Sec. 11.  Minnesota Statutes 1998, section 428A.21, is 
161.1   amended to read: 
161.2      428A.21 [SUNSET.] 
161.3      No new housing improvement areas may be established under 
161.4   sections 428A.11 to 428A.20 after June 30, 2001 2005.  After 
161.5   June 30, 2001 2005, a city may establish a housing improvement 
161.6   area, provided that it receives enabling legislation authorizing 
161.7   the establishment of the area. 
161.8      Sec. 12.  [465.717] [CREATION OF CORPORATIONS BY POLITICAL 
161.9   SUBDIVISIONS.] 
161.10     Subdivision 1.  [STATUTORY AUTHORIZATION REQUIRED.] A 
161.11  county, home rule charter city, statutory city, town, school 
161.12  district, or other political subdivision, including a joint 
161.13  powers entity operating under section 471.59 may not create a 
161.14  corporation, whether for profit or not for profit, unless 
161.15  explicitly authorized to do so by law.  
161.16     Subd. 2.  [AUTHORITY TO INCORPORATE A JOINT POWERS ENTITY.] 
161.17  A joint powers entity created under section 471.59 may 
161.18  incorporate itself as a nonprofit under chapter 317A.  A 
161.19  corporation created under this subdivision shall comply with 
161.20  every law that applies to the participating political 
161.21  subdivisions and shall possess no greater authority or power 
161.22  than that held by the joint powers entity itself. 
161.23     Sec. 13.  [465.719] [EXISTING CORPORATIONS CREATED BY 
161.24  POLITICAL SUBDIVISIONS.] 
161.25     Subdivision 1.  [DEFINITIONS.] The following definitions 
161.26  apply to this section: 
161.27     (a) "Political subdivision" means a county, a statutory or 
161.28  home rule charter city, a town, a school district, or other 
161.29  political subdivision of the state.  Political subdivision 
161.30  includes a political subdivision acting individually or jointly 
161.31  as provided under section 471.59. 
161.32     (b) "Corporation" means a corporation created by a 
161.33  political subdivision before May 31, 1997, in which (1) the 
161.34  corporation's articles of incorporation or bylaws provide for 
161.35  the governing body of the political subdivision to serve as a 
161.36  corporation's governing board; (2) the articles of incorporation 
162.1   or bylaws provide for members of the governing body of the 
162.2   political subdivision to be automatically appointed to the board 
162.3   solely by virtue of their appointment or election to office and 
162.4   they constitute a majority of the corporation's board members; 
162.5   or (3) the governing body of the political subdivision approves 
162.6   the budget or expenditures of the corporation for purposes other 
162.7   than those related to oversight of public grants or loans made 
162.8   to the corporation under a competitive process for which other 
162.9   entities are eligible.  Corporation does not include: 
162.10     (1) a corporation established under chapters 453, 453A, or 
162.11  sections 119A.374 to 119A.376; 245.62 to 245.66; 
162.12     (2) a nonprofit corporation created to raise funds for use 
162.13  by a political subdivision if less than a majority of the board 
162.14  of directors of the corporation are members of the governing 
162.15  body of the political subdivision appointed to the board of 
162.16  directors by virtue of their election to office; or 
162.17     (3) a corporation created by a political subdivision 
162.18  pursuant to state statute or special law or federal law. 
162.19     Subd. 2.  [RESOLUTION REQUIRED.] In order to provide for 
162.20  the continued existence of a corporation created by a political 
162.21  subdivision, the political subdivision, or its successor, that 
162.22  created the corporation must adopt a resolution at a regularly 
162.23  scheduled meeting of the governing body of the political 
162.24  subdivision.  The resolution must include the information 
162.25  required in subdivisions 4 to 9.  If a resolution is not adopted 
162.26  within three years of the effective date of this section, the 
162.27  board of directors of the corporation shall direct and authorize 
162.28  an officer or designee of the corporation to file with the 
162.29  secretary of state immediately a notice of intent to dissolve 
162.30  the corporation and then as soon as possible, complete 
162.31  dissolution of the corporation as provided in the corporation's 
162.32  articles of incorporation and bylaws, and the law under which 
162.33  the corporation was formed. 
162.34     Subd. 3.  [AMENDED ARTICLES OF INCORPORATION, BYLAWS.] If 
162.35  the political subdivision adopts a resolution under subdivision 
162.36  2, the board of directors of the corporation shall direct and 
163.1   authorize an officer or designee of the corporation to file 
163.2   amended articles of incorporation, if necessary, as soon as 
163.3   practicable after adoption of the resolution to make the 
163.4   articles of incorporation consistent with the resolution and to 
163.5   provide for the application of the laws under subdivision 10.  
163.6   Thereafter, the corporation may not amend its articles of 
163.7   incorporation unless the political subdivision adopts a 
163.8   resolution in support of the change as provided in subdivision 2 
163.9   for ratifying existing corporations. 
163.10     Subd. 4.  [EXISTING CONTRACTS.] If on the effective date of 
163.11  this section the corporation has contracts or other obligations 
163.12  that are inconsistent with any requirement of this section, the 
163.13  resolution may provide for the delayed application of that 
163.14  requirement for the time necessary to avoid a breach or 
163.15  impairment of the contract or obligation. 
163.16     Subd. 5.  [NEED FOR CORPORATION.] The resolution must make 
163.17  a detailed and specific finding regarding the purpose of the 
163.18  corporation, and why the corporation is the best alternative for 
163.19  accomplishing the purpose. 
163.20     Subd. 6.  [AUTHORITIES AND POWERS OF CORPORATION 
163.21  LIMITED.] The resolution must specify what authorities and 
163.22  powers the corporation possesses.  The authorities and powers of 
163.23  the corporation must not exceed the authorities and powers of 
163.24  the political subdivision that created it, except as otherwise 
163.25  authorized in this section. 
163.26     Subd. 7.  [BOARD MEMBERSHIP.] If a majority of the 
163.27  corporation's governing board includes elected or appointed 
163.28  officials of the political subdivision creating the corporation, 
163.29  the resolution must make a detailed and specific finding 
163.30  regarding the purpose of those officials serving on the board, 
163.31  and why the corporation cannot accomplish its purpose unless 
163.32  those officials serve on the board.  Alternatively, the 
163.33  resolution may provide for other board membership and the 
163.34  articles of incorporation amended to be consistent with the 
163.35  resolution. 
163.36     Subd. 8.  [ALLOCATION OF ASSETS AND LIABILITIES.] If a 
164.1   corporation is created by more than one political subdivision, 
164.2   each political subdivision that ratifies creation of the 
164.3   corporation must adopt a resolution required by this section 
164.4   and, among other requirements, each resolution must specify and 
164.5   agree with the resolution of the other political subdivisions as 
164.6   to how the assets and liabilities of the corporation are 
164.7   allocated or attributed to each political subdivision, 
164.8   including, but not limited to, for the purposes of any 
164.9   applicable levy or debt limits. 
164.10     Subd. 9.  [APPLICATION OF OTHER LAWS.] A corporation 
164.11  created by a political subdivision under this section must 
164.12  comply with every law that applies to the political subdivision, 
164.13  as if the corporation is a part of the political subdivision, 
164.14  unless the resolution ratifying creation of the corporation 
164.15  specifically exempts the corporation from part or all of a law.  
164.16  If the resolution exempts the corporation from part or all of a 
164.17  law, the resolution must make a detailed and specific finding as 
164.18  to why the corporation cannot fulfill its purpose if the 
164.19  corporation is subject to that law.  A corporation may not be 
164.20  exempted from section 471.705, the Minnesota Open Meeting Law, 
164.21  sections 138.163 to 138.25, the Records Management Act, or 
164.22  Chapter 13, the Minnesota Government Data Practices Act.  Laws 
164.23  that apply to a political subdivision that also apply to a 
164.24  corporation created by a political subdivision under this 
164.25  subdivision include, but are not limited to: 
164.26     (1) section 471.705, the Minnesota Open Meeting Law; 
164.27     (2) chapter 13, the Minnesota Government Data Practices 
164.28  Act; 
164.29     (3) section 471.345, the Uniform Municipal Contracting Law; 
164.30     (4) sections 43A.17, limiting the compensation of employees 
164.31  based on the governor's salary; 471.991 to 471.999, providing 
164.32  for equitable pay; and 465.72 and 465.722, governing severance 
164.33  pay; 
164.34     (5) section 275.065, providing for truth-in-taxation 
164.35  hearings.  If any tax revenues of the political subdivision will 
164.36  be appropriated to the corporation, the corporation's annual 
165.1   operating and capital budgets must be included in the 
165.2   truth-in-taxation hearing of the political subdivision that 
165.3   created the corporation; 
165.4      (6) if the corporation issues debt, its debt is included in 
165.5   the political subdivision's debt limit if it would be included 
165.6   if issued by the political subdivision, and issuance of the debt 
165.7   is subject to the election and other requirements of chapter 475 
165.8   and section 471.69; 
165.9      (7) section 471.895, prohibiting acceptance of gifts from 
165.10  interested parties, and sections 471.87 to 471.89, relating to 
165.11  interests in contracts; 
165.12     (8) chapter 466, relating to municipal tort liability; 
165.13     (9) chapter 118A, requiring deposit insurance or bond or 
165.14  pledged collateral for deposits; 
165.15     (10) chapter 118A, restricting investments; 
165.16     (11) section 471.346, requiring ownership of vehicles to be 
165.17  identified; 
165.18     (12) sections 471.38 to 471.41, requiring claims to be in 
165.19  writing, itemized, and approved by the governing board before 
165.20  payment can be made; and 
165.21     (13) the corporation cannot make advances of pay, make or 
165.22  guarantee loans to employees, or provide in-kind benefits unless 
165.23  authorized by law. 
165.24     Subd. 10.  [TAXES USED FOR PUBLIC PURPOSE.] If the 
165.25  political subdivision has authority under other law to 
165.26  appropriate tax revenues for use by the corporation, those funds 
165.27  must be appropriated and used only for public purposes. 
165.28     Subd. 11.  [AUDIT.] A corporation created by a political 
165.29  subdivision that receives public money from the political 
165.30  subdivision, other than grants or loans made under a competitive 
165.31  process for which other entities are eligible, must be audited 
165.32  annually by either a certified public accountant or the state 
165.33  auditor.  Except as provided below, the audit report must be 
165.34  presented at a regularly scheduled meeting of the governing body 
165.35  of the political subdivision that created the corporation.  The 
165.36  audit report must be made available to individuals after 
166.1   presentation of the audit report to the governing body of the 
166.2   political subdivision.  The data classification of an audit 
166.3   performed by the office of the state auditor is governed by 
166.4   chapter 6. 
166.5      Subd. 12.  [STATE AUDITOR POWERS.] The state auditor has 
166.6   the same powers with regard to a corporation created by a 
166.7   political subdivision as the state auditor has with regard to 
166.8   the political subdivision that created the corporation. 
166.9      Subd. 13.  [DATA.] (a) The following government data of a 
166.10  corporation subject to this section that are provided by a 
166.11  private business are private data on individuals or nonpublic 
166.12  data, as defined in section 13.02:  
166.13     (1) trade secret information, as defined in section 13.37; 
166.14  and 
166.15     (2) financial statements; credit reports; business plans; 
166.16  income and expense projections; customer lists; balance sheets; 
166.17  income tax returns; and design, market, and feasibility studies 
166.18  not paid for with public funds. 
166.19     (b) The following government data of the corporation are 
166.20  private data on individuals or nonpublic data, as defined in 
166.21  section 13.02: 
166.22     (1) trade secret information, as defined in section 13.02; 
166.23     (2) other data, to the extent the corporation is competing 
166.24  with other organizations providing the same goods or services 
166.25  and disclosure of the data would impair the ability of the 
166.26  corporation to compete; and 
166.27     (3) data identified in section 13.491 collected or received 
166.28  by a transit organization. 
166.29     Sec. 14.  Minnesota Statutes 1998, section 469.003, 
166.30  subdivision 5, is amended to read: 
166.31     Subd. 5.  [COMMISSIONERS.] An authority shall consist 
166.32  of five up to seven commissioners, who shall be residents of the 
166.33  area of operation of the authority, who shall be appointed after 
166.34  the resolution becomes finally effective.  If any additional 
166.35  commissioners are appointed, one of the commissioners must be 
166.36  appointed in accordance with the requirements of the Code of 
167.1   Federal Regulations, title 24, part 964. 
167.2      Sec. 15.  Minnesota Statutes 1998, section 469.006, 
167.3   subdivision 1, is amended to read: 
167.4      Subdivision 1.  [COUNTY COMMISSIONERS.] When the governing 
167.5   body of a county adopts a resolution under section 469.004, the 
167.6   governing body shall appoint five persons or the number of 
167.7   commissioners for the governing body, plus up to two additional 
167.8   commissioners, as commissioners of the county authority.  If any 
167.9   additional commissioners are appointed, one of the commissioners 
167.10  must be appointed in accordance with the requirements of the 
167.11  Code of Federal Regulations, title 24, part 964.  The membership 
167.12  of the commission will reflect an areawide distribution on a 
167.13  representative basis.  The commissioners who are first appointed 
167.14  shall be designated to serve for terms of one, two, three, four, 
167.15  and five years respectively, from the date of their 
167.16  appointment.  Thereafter commissioners shall be appointed for a 
167.17  term of office of five years except that all vacancies shall be 
167.18  filled for the unexpired term.  Persons may be appointed as 
167.19  commissioners if they reside within the boundaries or area, and 
167.20  are otherwise eligible for the appointments under sections 
167.21  469.001 to 469.047. 
167.22     Sec. 16.  Minnesota Statutes 1998, section 469.006, 
167.23  subdivision 2, is amended to read: 
167.24     Subd. 2.  [MULTICOUNTY COMMISSIONERS.] The governing body 
167.25  in the case of a county, and the mayor with the approval of the 
167.26  governing body in the case of a city, of each political 
167.27  subdivision included in a multicounty authority shall appoint 
167.28  one person as a commissioner of the authority at or after the 
167.29  time of the adoption of the resolution establishing the 
167.30  authority. 
167.31     In the case of a multicounty authority comprising only two 
167.32  or three political subdivisions, the appointing authorities of 
167.33  the participating political subdivisions shall each appoint one 
167.34  additional commissioner whose term of office shall be as 
167.35  provided for a commissioner of a multicounty authority.  If any 
167.36  additional commissioners are appointed, one of the commissioners 
168.1   must be appointed in accordance with the requirements of the 
168.2   Code of Federal Regulations, title 24, part 964. 
168.3      In the case of a multicounty authority comprising more than 
168.4   three political subdivisions, the appointing authorities of the 
168.5   participating political subdivisions may each appoint one 
168.6   additional commissioner whose term of office shall be as 
168.7   provided for a commissioner of a multicounty authority.  The 
168.8   housing and redevelopment authority board of commissioners of a 
168.9   multicounty authority may appoint one or two additional 
168.10  commissioners in order to comply with the requirements of the 
168.11  Code of Federal Regulations, title 24, part 964.  The 
168.12  appointment must be approved by a majority of the commissioners 
168.13  of each of the political subdivisions comprising the multicounty 
168.14  authority. 
168.15     When the area of operation of a multicounty authority is 
168.16  increased to include an additional political subdivision, the 
168.17  appointing authority of each additional political subdivision 
168.18  shall appoint one or, if appropriate, two commissioners of the 
168.19  multicounty authority.  
168.20     The appointing authority of each political subdivision 
168.21  shall appoint the successors of the commissioner appointed by 
168.22  it.  The commissioners of a multicounty authority shall be 
168.23  appointed for terms of five years except that all vacancies 
168.24  shall be filled for the unexpired terms. 
168.25     Sec. 17.  Minnesota Statutes 1998, section 469.011, 
168.26  subdivision 4, is amended to read: 
168.27     Subd. 4.  [EXPENSES; COMPENSATION.] Each commissioner may 
168.28  receive necessary expenses, including traveling expenses, 
168.29  incurred in the performance of duties.  Each commissioner may be 
168.30  paid up to $55 $75 for attending each regular and special 
168.31  meeting of the authority.  Commissioners who are full-time state 
168.32  employees or full-time employees of the political subdivisions 
168.33  of the state may not receive the daily payment, but they may 
168.34  suffer no loss in compensation or benefits from the state or a 
168.35  political subdivision as a result of their service on the board. 
168.36  Commissioners who are elected officials may receive the daily 
169.1   payment for a particular day only if they do not receive any 
169.2   other daily payment for public service on that day.  
169.3   Commissioners who are full-time state employees or full-time 
169.4   employees of the political subdivisions of the state may receive 
169.5   the expenses provided for in this subdivision unless the 
169.6   expenses are reimbursed by another source. 
169.7      Sec. 18.  Minnesota Statutes 1998, section 469.174, 
169.8   subdivision 10, is amended to read: 
169.9      Subd. 10.  [REDEVELOPMENT DISTRICT.] (a) "Redevelopment 
169.10  district" means a type of tax increment financing district 
169.11  consisting of a project, or portions of a project, within which 
169.12  the authority finds by resolution that one of the following 
169.13  conditions, reasonably distributed throughout the district, 
169.14  exists: 
169.15     (1) parcels consisting of 70 percent of the area of the 
169.16  district are occupied by buildings, streets, utilities, or other 
169.17  improvements and more than 50 percent of the buildings, not 
169.18  including outbuildings, are structurally substandard to a degree 
169.19  requiring substantial renovation or clearance; or 
169.20     (2) the property consists of vacant, unused, underused, 
169.21  inappropriately used, or infrequently used railyards, rail 
169.22  storage facilities, or excessive or vacated railroad 
169.23  rights-of-way, or tank facilities, as defined in section 
169.24  115C.02, subdivision 15, with a capacity in excess of 1,000,000 
169.25  gallons, located adjacent to rail facilities. 
169.26     (b) For purposes of this subdivision, "structurally 
169.27  substandard" shall mean containing defects in structural 
169.28  elements or a combination of deficiencies in essential utilities 
169.29  and facilities, light and ventilation, fire protection including 
169.30  adequate egress, layout and condition of interior partitions, or 
169.31  similar factors, which defects or deficiencies are of sufficient 
169.32  total significance to justify substantial renovation or 
169.33  clearance.  
169.34     (c) A building is not structurally substandard if it is in 
169.35  compliance with the building code applicable to new buildings or 
169.36  could be modified to satisfy the building code at a cost of less 
170.1   than 15 percent of the cost of constructing a new structure of 
170.2   the same square footage and type on the site.  The municipality 
170.3   may find that a building is not disqualified as structurally 
170.4   substandard under the preceding sentence on the basis of 
170.5   reasonably available evidence, such as the size, type, and age 
170.6   of the building, the average cost of plumbing, electrical, or 
170.7   structural repairs, or other similar reliable evidence.  The 
170.8   municipality may not make such a determination without an 
170.9   interior inspection of the property, but need not have an 
170.10  independent, expert appraisal prepared of the cost of repair and 
170.11  rehabilitation of the building.  An interior inspection of the 
170.12  property is not required, if the municipality finds that (1) the 
170.13  municipality or authority is unable to gain access to the 
170.14  property after using its best efforts to obtain permission from 
170.15  the party that owns or controls the property; and (2) the 
170.16  evidence otherwise supports a reasonable conclusion that the 
170.17  building is structurally substandard.  Items of evidence that 
170.18  support such a conclusion include recent fire or police 
170.19  inspections, on-site property tax appraisals or housing 
170.20  inspections, exterior evidence of deterioration, or other 
170.21  similar reliable evidence.  Written documentation of the 
170.22  findings and reasons why an interior inspection was not 
170.23  conducted must be made and retained under section 469.175, 
170.24  subdivision 3, clause (1). 
170.25     (d) A parcel is deemed to be occupied by a structurally 
170.26  substandard building for purposes of the finding under paragraph 
170.27  (a) if all of the following conditions are met: 
170.28     (1) the parcel was occupied by a substandard building 
170.29  within three years of the filing of the request for 
170.30  certification of the parcel as part of the district with the 
170.31  county auditor; 
170.32     (2) the substandard building was demolished or removed by 
170.33  the authority or the demolition or removal was financed by the 
170.34  authority or was done by a developer under a development 
170.35  agreement with the authority; 
170.36     (3) the authority found by resolution before the demolition 
171.1   or removal that the parcel was occupied by a structurally 
171.2   substandard building and that after demolition and clearance the 
171.3   authority intended to include the parcel within a district; and 
171.4      (4) upon filing the request for certification of the tax 
171.5   capacity of the parcel as part of a district, the authority 
171.6   notifies the county auditor that the original tax capacity of 
171.7   the parcel must be adjusted as provided by section 469.177, 
171.8   subdivision 1, paragraph (h). 
171.9      (e) For purposes of this subdivision, a parcel is not 
171.10  occupied by buildings, streets, utilities, or other improvements 
171.11  unless 15 percent of the area of the parcel contains 
171.12  improvements. 
171.13     (f) For districts consisting of two or more noncontiguous 
171.14  areas, each area must qualify as a redevelopment district under 
171.15  paragraph (a) to be included in the district, and the entire 
171.16  area of the district must satisfy paragraph (a). 
171.17     <b>EFFECTIVE DATE:</b>  This section is effective for districts or 
171.18  additions to the geographic area of a district for which request 
171.19  for certification is made after June 30, 2000. 
171.20     Sec. 19.  Minnesota Statutes 1998, section 469.175, 
171.21  subdivision 1a, is amended to read: 
171.22     Subd. 1a.  [INCLUSION OF COUNTY ROAD COSTS.] (a) The county 
171.23  board may require the authority to pay all or a portion of the 
171.24  cost of county road improvements out of increment revenues, if 
171.25  the following conditions occur: 
171.26     (1) the proposed tax increment financing plan or an 
171.27  amendment to the plan contemplates construction of a development 
171.28  that will, in the judgment of the county, substantially increase 
171.29  the use of county roads requiring construction of road 
171.30  improvements or other road costs; and 
171.31     (2) the road improvements or other road costs are not 
171.32  scheduled for construction within five years under the county 
171.33  capital improvement plan or other within five years under 
171.34  another formally adopted county plan, and in the opinion of the 
171.35  county, would not reasonably be expected to be needed within the 
171.36  reasonably foreseeable future if the tax increment financing 
172.1   plan were not implemented. 
172.2      (b) If the county elects to use increments to finance the 
172.3   road improvements, the county must notify the authority and 
172.4   municipality within 30 days after receipt of the information on 
172.5   the proposed tax increment district under subdivision 2.  The 
172.6   notice must include the estimated cost of the road improvements 
172.7   and schedule for construction and payment of the cost.  The 
172.8   authority must include the improvements in the tax increment 
172.9   financing plan.  The improvements may be financed with the 
172.10  proceeds of tax increment bonds or the authority and the county 
172.11  may agree that the county will finance the improvements with 
172.12  county funds to be repaid in installments, with or without 
172.13  interest, out of increment revenues.  If the cost of the road 
172.14  improvements and other project costs exceed the projected amount 
172.15  of the increment revenues, the county and authority shall 
172.16  negotiate an agreement, modifying the development plan or 
172.17  proposed road improvements that will permit financing of the 
172.18  costs before the tax increment financing plan may be approved. 
172.19     <b>EFFECTIVE DATE:</b>  This section is effective for districts, 
172.20  or expansions of the geographic area of districts, for which 
172.21  certification is requested after the day following final 
172.22  enactment of this act. 
172.23     Sec. 20.  Minnesota Statutes 1998, section 469.175, 
172.24  subdivision 5, is amended to read: 
172.25     Subd. 5.  [ANNUAL DISCLOSURE.] (a) The authority shall 
172.26  annually submit to the county board, the county auditor, the 
172.27  school board, state auditor and, if the authority is other than 
172.28  the municipality, the governing body of the municipality, a 
172.29  report of the status of the district.  The report shall include 
172.30  the following information:  the amount and the source of revenue 
172.31  in the account, the amount and purpose of expenditures from the 
172.32  account, the amount of any pledge of revenues, including 
172.33  principal and interest on any outstanding bonded indebtedness, 
172.34  the original net tax capacity of the district and any 
172.35  subdistrict, the captured net tax capacity retained by the 
172.36  authority, the captured net tax capacity shared with other 
173.1   taxing districts, the tax increment received, and any additional 
173.2   information necessary to demonstrate compliance with any 
173.3   applicable tax increment financing plan.  The authority must 
173.4   submit the annual report for a year on or before August 1 of the 
173.5   next year. 
173.6      (b) An annual statement showing the tax increment received 
173.7   and expended in that year, the original net tax capacity, 
173.8   captured net tax capacity, amount of outstanding bonded 
173.9   indebtedness, the amount of the district's and any subdistrict's 
173.10  increments paid to other governmental bodies, the amount paid 
173.11  for administrative costs, the sum of increments paid, directly 
173.12  or indirectly, for activities and improvements located outside 
173.13  of the district, for each district the information required to 
173.14  be reported under subdivision 6, paragraph (c), clauses (1), 
173.15  (2), (3), (11), (12), (20), and (21); the amounts of tax 
173.16  increment received and expended in the reporting period; and any 
173.17  additional information the authority deems necessary shall must 
173.18  be published in a newspaper of general circulation in the 
173.19  municipality that approved the tax increment financing plan.  If 
173.20  the fiscal disparities contribution under chapter 276A or 473F 
173.21  for the district is computed under section 469.177, subdivision 
173.22  3, paragraph (a), the annual statement must disclose that fact 
173.23  and indicate the amount of increased property tax imposed on 
173.24  other properties in the municipality as a result of the fiscal 
173.25  disparities contribution.  The commissioner of revenue shall 
173.26  prescribe the form of this statement and the method for 
173.27  calculating the increased property taxes.  The annual statement 
173.28  must inform readers that additional information regarding each 
173.29  district may be obtained from the authority, and must explain 
173.30  how the additional information may be requested.  The authority 
173.31  must publish the annual statement for a year no later than 
173.32  August 15 of the next year.  The authority must identify the 
173.33  newspaper of general circulation in the municipality to which 
173.34  the annual statement has been or will be submitted for 
173.35  publication and provide a copy of the annual statement to 
173.36  the county board, the county auditor, the school board, the 
174.1   state auditor, and, if the authority is other than the 
174.2   municipality, the governing body of the municipality on or 
174.3   before August 1 of the year in which the statement must be 
174.4   published.  
174.5      (c) The disclosure and reporting requirements imposed by 
174.6   this subdivision apply to districts certified before, on, or 
174.7   after August 1, 1979. 
174.8      <b>EFFECTIVE DATE:</b>  This section is effective for reports due 
174.9   in 2001 and subsequent years. 
174.10     Sec. 21.  Minnesota Statutes 1998, section 469.175, 
174.11  subdivision 6, is amended to read: 
174.12     Subd. 6.  [ANNUAL FINANCIAL REPORTING.] (a) The state 
174.13  auditor shall develop a uniform system of accounting and 
174.14  financial reporting for tax increment financing districts.  The 
174.15  system of accounting and financial reporting shall, as nearly as 
174.16  possible: 
174.17     (1) provide for full disclosure of the sources and uses of 
174.18  public funds in the district; 
174.19     (2) permit comparison and reconciliation with the affected 
174.20  local government's accounts and financial reports; 
174.21     (3) permit auditing of the funds expended on behalf of a 
174.22  district, including a single district that is part of a 
174.23  multidistrict project or that is funded in part or whole through 
174.24  the use of a development account funded with tax increments from 
174.25  other districts or with other public money; 
174.26     (4) be consistent with generally accepted accounting 
174.27  principles. 
174.28     (b) The authority must annually submit to the state auditor 
174.29  a financial report in compliance with paragraph (a).  Copies of 
174.30  the report must also be provided to the county and school 
174.31  district boards auditor and to the governing body of the 
174.32  municipality, if the authority is not the municipality.  To the 
174.33  extent necessary to permit compliance with the requirement of 
174.34  financial reporting, the county and any other appropriate local 
174.35  government unit or private entity must provide the necessary 
174.36  records or information to the authority or the state auditor as 
175.1   provided by the system of accounting and financial reporting 
175.2   developed pursuant to paragraph (a).  The authority must submit 
175.3   the annual report for a year on or before August 1 of the next 
175.4   year. 
175.5      (c) The annual financial report must also include the 
175.6   following items: 
175.7      (1) the original net tax capacity of the district and any 
175.8   subdistrict under section 469.177, subdivision 1; 
175.9      (2) the net tax capacity for the reporting period of the 
175.10  district and any subdistrict; 
175.11     (3) the captured net tax capacity of the district, 
175.12  including the amount of any captured net tax capacity shared 
175.13  with other taxing districts; 
175.14     (3) (4) any fiscal disparity deduction from the captured 
175.15  net tax capacity under section 469.177, subdivision 3; 
175.16     (5) the captured net tax capacity retained for tax 
175.17  increment financing under section 469.177, subdivision 2, 
175.18  paragraph (a), clause (1); 
175.19     (6) any captured net tax capacity distributed among 
175.20  affected taxing districts under section 469.177, subdivision 2, 
175.21  paragraph (a), clause (2); 
175.22     (7) the type of district; 
175.23     (8) the date the municipality approved the tax increment 
175.24  financing plan and the date of approval of any modification of 
175.25  the tax increment financing plan, the approval of which requires 
175.26  notice, discussion, a public hearing, and findings under 
175.27  subdivision 4, paragraph (a); 
175.28     (9) the date the authority first requested certification of 
175.29  the original net tax capacity of the district and the date of 
175.30  the request for certification regarding any parcel added to the 
175.31  district; 
175.32     (10) the date the county auditor first certified the 
175.33  original net tax capacity of the district and the date of 
175.34  certification of the original net tax capacity of any parcel 
175.35  added to the district; 
175.36     (11) the month and year in which the authority has received 
176.1   or anticipates it will receive the first increment from the 
176.2   district; 
176.3      (12) the date the district must be decertified; 
176.4      (13) for the reporting period and prior years of the 
176.5   district, the actual amount received from, at least, the 
176.6   following categories: 
176.7      (i) tax increments paid by the captured net tax capacity 
176.8   retained for tax increment financing under section 469.177, 
176.9   subdivision 2, paragraph (a), clause (1), but excluding any 
176.10  excess taxes; 
176.11     (ii) tax increments that are interest or other investment 
176.12  earnings on or from tax increments; 
176.13     (iii) tax increments that are proceeds from the sale or 
176.14  lease of property, tangible or intangible, purchased by the 
176.15  authority with tax increments; 
176.16     (iv) tax increments that are repayments of loans or other 
176.17  advances made by the authority with tax increments; 
176.18     (v) bond or loan proceeds; 
176.19     (vi) special assessments; 
176.20     (vii) grants; and 
176.21     (viii) transfers from funds not exclusively associated with 
176.22  the district; 
176.23     (14) for the reporting period and for the duration prior 
176.24  years of the district, the amount budgeted under the tax 
176.25  increment financing plan, and the actual amount expended for, at 
176.26  least, the following categories: 
176.27     (i) acquisition of land and buildings through condemnation 
176.28  or purchase; 
176.29     (ii)  site improvements or preparation costs; 
176.30     (iii) installation of public utilities, parking facilities, 
176.31  streets, roads, sidewalks, or other similar public improvements; 
176.32     (iv) administrative costs, including the allocated cost of 
176.33  the authority; 
176.34     (v) public park facilities, facilities for social, 
176.35  recreational, or conference purposes, or other similar public 
176.36  improvements; and 
177.1      (vi) transfers to funds not exclusively associated with the 
177.2   district; 
177.3      (4) (15) for properties sold to developers, the total cost 
177.4   of the property to the authority and the price paid by the 
177.5   developer; and 
177.6      (5) the amount of increments rebated or paid to developers 
177.7   or property owners for privately financed improvements or other 
177.8   qualifying costs. 
177.9      (16) the amount of any payments and the value of any 
177.10  in-kind benefits, such as physical improvements and the use of 
177.11  building space, that are paid or financed with tax increments 
177.12  and are provided to another governmental unit other than the 
177.13  municipality during the reporting period; 
177.14     (17) the amount of any payments for activities and 
177.15  improvements located outside of the district that are paid for 
177.16  or financed with tax increments; 
177.17     (18) the amount of payments of principal and interest that 
177.18  are made during the reporting period on any nondefeased: 
177.19     (i) general obligation tax increment financing bonds; 
177.20     (ii) other tax increment financing bonds; and 
177.21     (iii) notes and pay-as-you-go contracts; 
177.22     (19) the principal amount, at the end of the reporting 
177.23  period, of any nondefeased: 
177.24     (i) general obligation tax increment financing bonds; 
177.25     (ii) other tax increment financing bonds; and 
177.26     (iii) notes and pay-as-you-go contracts; 
177.27     (20) the amount of principal and interest payments that are 
177.28  due for the current calendar year on any nondefeased: 
177.29     (i) general obligation tax increment financing bonds; 
177.30     (ii) other tax increment financing bonds; and 
177.31     (iii) notes and pay-as-you-go contracts; 
177.32     (21) if the fiscal disparities contribution under chapter 
177.33  276A or 473F for the district is computed under section 469.177, 
177.34  subdivision 3, paragraph (a), the amount of increased property 
177.35  taxes imposed on other properties in the municipality that 
177.36  approved the tax increment financing plan as a result of the 
178.1   fiscal disparities contribution; 
178.2      (22) whether the tax increment financing plan or other 
178.3   governing document permits increment revenues to be expended: 
178.4      (i) to pay bonds, the proceeds of which were or may be 
178.5   expended on activities outside of the district; 
178.6      (ii) for deposit into a common bond fund from which money 
178.7   may be expended on activities located outside of the district; 
178.8   or 
178.9      (iii) to otherwise finance activities located outside of 
178.10  the tax increment financing district; and 
178.11     (23) any additional information the state auditor may 
178.12  require. 
178.13     (d) The commissioner of revenue shall prescribe the method 
178.14  of calculating the increased property taxes under paragraph (c), 
178.15  clause (21), and the form of the statement disclosing this 
178.16  information on the annual statement under subdivision 5. 
178.17     (e) The reporting requirements imposed by this subdivision 
178.18  apply to districts certified before, on, and after August 1, 
178.19  1979. 
178.20     <b>EFFECTIVE DATE:</b>  This section is effective for reports due 
178.21  in 2001 and subsequent years. 
178.22     Sec. 22.  Minnesota Statutes 1998, section 469.176, 
178.23  subdivision 1b, is amended to read: 
178.24     Subd. 1b.  [DURATION LIMITS; TERMS.] (a) No tax increment 
178.25  shall in any event be paid to the authority 
178.26     (1) after 25 years from date of receipt by the authority of 
178.27  the first tax increment for a mined underground space 
178.28  development district, 
178.29     (2) after 15 years after receipt by the authority of the 
178.30  first increment for a renewal and renovation district, 
178.31     (3) after 20 years after receipt by the authority of the 
178.32  first increment for a soils condition district, 
178.33     (4) after nine years from the date of the after receipt, or 
178.34  11 years from approval of the tax increment financing plan, 
178.35  whichever is less, by the authority of the first increment for 
178.36  an economic development district for which the request for 
179.1   certification was made after May 31, 1993; and after eight years 
179.2   after receipt by the authority of the first increment for an 
179.3   economic development district for which the request for 
179.4   certification was made before June 1, 1993, 
179.5      (5) for a housing district or a redevelopment district, 
179.6   after 20 years from the date of receipt by the authority of the 
179.7   first tax increment by the authority pursuant to section 
179.8   469.175, subdivision 1, paragraph (b); or, if no provision is 
179.9   made under section 469.175, subdivision 1, paragraph (b), after 
179.10  25 years from the date of receipt by the authority of the first 
179.11  increment. 
179.12     (b) For purposes of determining a duration limit under this 
179.13  subdivision or subdivision 1e that is based on the receipt of an 
179.14  increment, any increments from taxes payable in the year in 
179.15  which the district terminates shall be paid to the authority.  
179.16  This paragraph does not affect a duration limit calculated from 
179.17  the date of approval of the tax increment financing plan or 
179.18  based on the recovery of costs or to a duration limit under 
179.19  subdivision 1c.  This paragraph does not supersede the 
179.20  restrictions on payment of delinquent taxes in subdivision 1f. 
179.21     <b>EFFECTIVE DATE:</b>  This section is effective on May 1, 2000, 
179.22  and applies to any economic development district that: 
179.23     (1) is requested for certification after May 1, 2000; 
179.24     (2) was requested for certification after July 31, 1979, 
179.25  and as of May 1, 2000, has not reached its maximum duration 
179.26  under the law in effect on the date the district was requested 
179.27  for certification; or 
179.28     (3) was requested for certification after July 31, 1979, 
179.29  and the authority received tax increment from the county after 
179.30  the duration limit calculated from the date of approval of the 
179.31  plan, but within the duration limit if this section had been in 
179.32  effect on the date the district was requested for certification. 
179.33     Sec. 23.  Minnesota Statutes 1998, section 469.1763, is 
179.34  amended by adding a subdivision to read: 
179.35     Subd. 7.  [HOUSING DEVELOPMENTS.] (a) The restrictions in 
179.36  subdivisions 2 through 4 do not apply to increments spent 
180.1   exclusively to assist a housing development. 
180.2      (b) For purposes of this subdivision, the following terms 
180.3   have the meanings given. 
180.4      (1) "Housing development" or "development" means housing 
180.5   that meets the requirements for a qualified low-income building 
180.6   as that term is used in section 42 of the Internal Revenue Code. 
180.7      (2) "To assist" means amounts spent to: 
180.8      (i) acquire and prepare the site; 
180.9      (ii) acquire, construct, or rehabilitate buildings or other 
180.10  improvements; and 
180.11     (iii) make public improvements directly related to the 
180.12  development. 
180.13     (c) For a development, the amount of the tax increments 
180.14  that qualifies under this subdivision is limited to the 
180.15  qualified basis for the development, as defined under section 
180.16  42(c) of the Internal Revenue Code, less the amount of any tax 
180.17  credit the development is allowed under section 42 of the 
180.18  Internal Revenue Code. 
180.19     <b>EFFECTIVE DATE:</b>  This section applies to increments spent 
180.20  after July 1, 2000. 
180.21     Sec. 24.  [FINDINGS.] 
180.22     The legislature finds that: 
180.23     (1) the legislature has directed the metropolitan airports 
180.24  commission to develop a plan to mitigate aircraft noise 
180.25  associated with the operation of the Minneapolis/St. Paul 
180.26  International Airport; 
180.27     (2) the metropolitan airports commission has developed a 
180.28  noise mitigation plan in conjunction with communities adjacent 
180.29  to the airport and is in the process of updating its FAR Part 
180.30  150 noise mitigation program for submission to and approval by 
180.31  the Federal Aviation Administration; 
180.32     (3) the legislature also established the governor's airport 
180.33  community stabilization funding task force that recommended 
180.34  further mitigation funding to address federal, state, and local 
180.35  participation in mitigation of noise and other impacts 
180.36  associated with expansion of the Minneapolis/St. Paul 
181.1   International Airport at its present location; 
181.2      (4) the task force concluded that: 
181.3      (i) the metropolitan airports commission has committed 
181.4   significant resources toward mitigating the negative impacts 
181.5   associated with airport expansion, but the FAR Part 150 noise 
181.6   program is insufficient to address all impacts; 
181.7      (ii) the metropolitan airports commission is neither 
181.8   capable of, nor should it be required to, finance mitigation of 
181.9   all airport impacts; 
181.10     (iii) the decision to keep and expand the airport at its 
181.11  current location was a state decision, and as such, the state 
181.12  should be a financial partner in mitigation projects resulting 
181.13  from the expansion of the airport; and 
181.14     (iv) no single funding source is adequate for the range and 
181.15  scope of proposed mitigation activities; and 
181.16     (5) appropriate measures to mitigate adverse impacts 
181.17  include, but are not limited to, insulation, redevelopment and 
181.18  housing replacement activities, and property value assurance and 
181.19  expenditures for all such measures are for a public purpose. 
181.20     Sec. 25.  [DEFINITIONS.] 
181.21     Subdivision 1.  [APPLICATION.] For the purposes of sections 
181.22  24 to 28, the terms defined in this section have the meanings 
181.23  given them. 
181.24     Subd. 2.  [AIRPORT IMPACT DISTRICT.] "Airport impact 
181.25  district" means an airport impact tax increment financing 
181.26  district described in section 27. 
181.27     Subd. 3.  [AIRPORT IMPACT ZONE.] "Airport impact zone" 
181.28  means a contiguous or noncontiguous geographic area designated 
181.29  by a city and approved by the council as part of a mitigation 
181.30  plan under section 26. 
181.31     Subd. 4.  [CITY.] "City" means the cities of Bloomington, 
181.32  Burnsville, Eagan, Mendota Heights, Minneapolis, Richfield, and 
181.33  St. Paul or any of them. 
181.34     Subd. 5.  [COUNCIL.] "Council" means the metropolitan 
181.35  council.  
181.36     Subd. 6.  [GOVERNING BODY.] "Governing body" means the city 
182.1   council of a city. 
182.2      Subd. 7.  [HOUSING REPLACEMENT ACTIVITIES.] "Housing 
182.3   replacement activities" means rehabilitation, acquisition, 
182.4   demolition relocation assistance, relocation of existing 
182.5   dwelling units, and construction of new dwelling units, for the 
182.6   purpose of replacing dwelling units eliminated by airport 
182.7   mitigation activities. 
182.8      Subd. 8.  [IMPACT REPORT.] "Impact report" means a written 
182.9   report identifying airport impacts adopted by a city under 
182.10  section 26. 
182.11     Subd. 9.  [MITIGATION PLAN.] "Mitigation plan" means a plan 
182.12  for airport impact mitigation developed by a city and approved 
182.13  by the council under section 26. 
182.14     Subd. 10.  [OBLIGATION.] "Obligation" has the meaning given 
182.15  it in Minnesota Statutes, section 475.51, subdivision 3.  The 
182.16  term includes obligations issued to refund prior obligations 
182.17  issued under sections 24 to 28. 
182.18     Subd. 11.  [SCHOOL DISTRICT.] "School district" means a 
182.19  school district whose jurisdiction includes all or any portion 
182.20  of a city. 
182.21     Sec. 26.  [AIRPORT IMPACT MITIGATION PLANNING.] 
182.22     Subdivision 1.  [IMPACT REPORT.] A city may study and 
182.23  identify airport impacts and the scope of those impacts on the 
182.24  city.  At the conclusion of an impact study, a city must adopt a 
182.25  report of the impacts on the city.  In studying airport impacts 
182.26  and preparing a report, a city must take into account airport 
182.27  noise impacts and additional environmental, transportation, and 
182.28  economic impacts associated with expansion of the 
182.29  Minneapolis/St. Paul International Airport.  A city must also 
182.30  consider and incorporate the overhead noise guidelines 
182.31  established by the Federal Aviation Administration and 
182.32  recommendations of the low frequency noise policy committee 
182.33  concerning noise impacts. 
182.34     Subd. 2.  [MITIGATION PLAN.] (a) After adopting an airport 
182.35  impact report, a city must develop an airport mitigation plan 
182.36  for an airport impact zone in the city.  In developing the 
183.1   mitigation plan, a city must seek to determine the most 
183.2   effective measures for mitigating the impacts identified in the 
183.3   impact report.  A city may consider any measures for mitigating 
183.4   airport impacts, including, but not limited to, noise insulation 
183.5   of residential and commercial buildings, land use conversion, 
183.6   development of housing to replace units lost through mitigation 
183.7   activities, and property value assurance programs.  The 
183.8   mitigation plan must include: 
183.9      (1) designated boundaries of the airport impact zone; 
183.10     (2) a description of recommended impact mitigation 
183.11  measures; 
183.12     (3) if the plan includes establishment of one or more 
183.13  airport impact tax increment financing districts, the proposed 
183.14  boundaries of each district consistent with the terms of section 
183.15  27; 
183.16     (4) if the plan includes conversion of residential land 
183.17  use, a description of proposed housing replacement activities; 
183.18     (5) estimates of costs of the recommended mitigation 
183.19  measures and possible financing sources; 
183.20     (6) an analysis of the feasibility of property tax 
183.21  abatement under Minnesota Statutes, sections 469.1813 to 
183.22  469.1815, as a financing source; and 
183.23     (7) the estimated amount of obligations, if any, to be 
183.24  issued under section 28, including a description of the proposed 
183.25  security for the obligations and whether the city requests 
183.26  credit enhancement by the council as provided in section 28, 
183.27  subdivision 2. 
183.28     (b) Before initial approval of a mitigation plan, a city 
183.29  must conduct a public hearing after publishing at least ten days 
183.30  before the hearing a notice in a newspaper of general 
183.31  circulation in the city.  The hearing notice must state that the 
183.32  mitigation plan and the mitigation report are available for 
183.33  review in the administrative offices of the city.  After initial 
183.34  approval of the mitigation plan by the governing body, the city 
183.35  must submit the mitigation plan and the mitigation report to the 
183.36  council for approval, and must also submit copies to the 
184.1   metropolitan airports commission for review and comment.  No 
184.2   more than 60 days after receipt of the city's submission, the 
184.3   council must approve, disapprove, or otherwise comment on the 
184.4   mitigation plan.  Failure by the council to approve or comment 
184.5   within 60 days is considered approval of the mitigation plan.  
184.6   An action described in a mitigation plan must not be financed by 
184.7   the mitigation fund or an airport impact district until the 
184.8   mitigation plan has been approved by the council and then 
184.9   approved by the governing body. 
184.10     (c) Before approving any mitigation plan, the council must 
184.11  establish criteria for evaluating proposed airport impact zones, 
184.12  airport impact districts, and mitigation measures.  The council 
184.13  must consult with the cities and the metropolitan airports 
184.14  commission in developing the criteria.  The council must approve 
184.15  final criteria by December 31, 2000.  Any mitigation plan 
184.16  approved under sections 24 to 28 must be consistent with the 
184.17  criteria established under this paragraph. 
184.18     (d) A mitigation plan may be changed for the following 
184.19  purposes after the notice, hearing, and approvals required for 
184.20  approval of the original plan to: 
184.21     (1) increase the total estimated cost of mitigation 
184.22  activities; 
184.23     (2) increase the total estimated amount of obligations to 
184.24  be issued; 
184.25     (3) secure any obligations by the pledge described in 
184.26  section 28, subdivision 2, if the pledge was not included in the 
184.27  original plan; 
184.28     (4) expand the boundaries of an airport impact zone; 
184.29     (5) create or expand the boundaries of an airport impact 
184.30  district; or 
184.31     (6) add mitigation activities beyond the scope of 
184.32  activities described in the original plan. 
184.33     (e) Expenditures to implement a mitigation plan are not 
184.34  considered a business subsidy under Minnesota Statutes, sections 
184.35  116J.993 to 116J.995. 
184.36     Sec. 27.  [AIRPORT IMPACT TAX INCREMENT FINANCING 
185.1   DISTRICTS.] 
185.2      Subdivision 1.  [AUTHORIZATION.] A city may establish one 
185.3   or more airport impact tax increment financing districts within 
185.4   an airport impact zone.  At least 75 percent of the area of an 
185.5   airport impact district must be located within the 60 DNL 
185.6   contour surrounding the Minneapolis/St. Paul International 
185.7   Airport.  The boundaries of each district must be described in a 
185.8   mitigation plan. 
185.9      Subd. 2.  [SPECIAL RULES.] (a) An airport impact district 
185.10  is considered a redevelopment district within the meaning of, 
185.11  and is subject to, Minnesota Statutes, sections 469.174 to 
185.12  469.179, except as otherwise provided in this subdivision.  For 
185.13  the purposes of Minnesota Statutes, section 469.174, subdivision 
185.14  8, "project" means an airport impact zone described in section 
185.15  26. 
185.16     (b) For the purposes of Minnesota Statutes, section 
185.17  469.174, subdivision 10, the governing body must find that 
185.18  parcels consisting of 70 percent of the area of the district are 
185.19  occupied by buildings, streets, utilities, or other 
185.20  improvements, and more than 50 percent of the buildings, not 
185.21  including outbuildings, currently or upon completion of airport 
185.22  expansion are reasonably expected to experience airport impacts 
185.23  identified in the mitigation plan to a degree requiring land use 
185.24  conversion to accommodate uses compatible with the airport.  
185.25  This finding may be made at the time of approval of the 
185.26  mitigation plan. 
185.27     (c) For the purposes of Minnesota Statutes, section 
185.28  469.1763, subdivision 2, the in-district percentage is 75 
185.29  percent, except that any expenditures within the boundaries of 
185.30  any other airport impact tax increment financing district in the 
185.31  city are considered activities within the district whenever made 
185.32  notwithstanding anything to the contrary in Minnesota Statutes, 
185.33  section 469.1763, subdivision 3, and the 25 percent pooling 
185.34  percentage may be used only to pay for administrative expenses 
185.35  and housing replacement activities. 
185.36     (d) For the purposes of Minnesota Statutes, section 
186.1   469.176, subdivision 4j, the cost of correcting conditions that 
186.2   allow designation of the airport impact district includes the 
186.3   cost of a mitigation measure described in an approved mitigation 
186.4   plan. 
186.5      (e) Minnesota Statutes, sections 273.1399 and 469.1782, 
186.6   subdivision 1, do not apply to the district if the city elects 
186.7   either or both of the following: 
186.8      (1) the exemption under Minnesota Statutes, section 
186.9   273.1399, subdivision 6, paragraph (d); or 
186.10     (2) at least 15 percent of the revenue generated from tax 
186.11  increments from the airport impact district in any year is 
186.12  deposited in the housing replacement account of the city and 
186.13  spent for housing replacement activities described in the 
186.14  mitigation plan. 
186.15     (f) Housing replacement activities may be located in the 
186.16  city within or outside the airport impact district. 
186.17     (g) Minnesota Statutes, chapter 473F, does not apply to 
186.18  property within an airport impact district beginning in the 
186.19  first year in which tax increment is paid to the city and 
186.20  continuing until decertification of the district.  Tax increment 
186.21  from the district is calculated according to Minnesota Statutes, 
186.22  section 469.177, subdivision 3, paragraph (a), without regard to 
186.23  the fiscal disparities provisions of Minnesota Statutes, chapter 
186.24  473F. 
186.25     Sec. 28.  [BONDS; SECURITY.] 
186.26     Subdivision 1.  [TERMS.] (a) A city may issue obligations 
186.27  secured by: 
186.28     (1) tax increments; 
186.29     (2) abatements; 
186.30     (3) any other revenues available to the city under law; or 
186.31     (4) any combination of revenue described in clauses (1) to 
186.32  (3). 
186.33     (b) The proceeds of obligations must be used to pay or 
186.34  reimburse any costs to implement a mitigation plan, including, 
186.35  without limitation, costs of preparing the impact report and the 
186.36  mitigation plan.  The governing body may provide by resolution 
187.1   that the obligations are additionally secured by the full faith 
187.2   and credit of the city.  Notwithstanding any other law or 
187.3   charter provision, voter approval is not required and net debt 
187.4   limits do not apply to obligations issued under this section.  
187.5   Obligations secured in whole or in part with tax increments from 
187.6   an airport impact district must be issued according to sections 
187.7   24 to 28 and Minnesota Statutes, section 469.178. 
187.8      Subd. 2.  [METROPOLITAN AREA CREDIT ENHANCEMENT 
187.9   PROGRAM.] (a) The council may establish an airport impact 
187.10  mitigation bond credit enhancement program as provided in this 
187.11  section.  The council may pledge its full faith and credit and 
187.12  taxing powers to obligations issued under sections 24 to 28 if: 
187.13     (1) the city so requests and the council approves that 
187.14  pledge as part of the city's mitigation plan; and 
187.15     (2) the council finds that revenues pledged for payment of 
187.16  the obligations will produce, as estimated at the time of the 
187.17  pledge, at least 125 percent of the principal and interest due 
187.18  on the obligations. 
187.19     (b) The pledge must be made by resolution of the council.  
187.20  Voter approval of obligations secured by the pledge described in 
187.21  this subdivision is not required and net debt limits do not 
187.22  apply. 
187.23     (c) Before pledging its full faith and credit, the council 
187.24  must, in consultation with the cities and the metropolitan 
187.25  airports commission, establish criteria for approving requests 
187.26  for credit enhancement under this section.  The criteria may 
187.27  contain limits on the total amount of obligations that may be 
187.28  credit enhanced under this subdivision. 
187.29     (d) If there is a deficiency in revenues pledged to 
187.30  obligations credit enhanced under this subdivision, the council 
187.31  must levy a tax against all taxable property in the metropolitan 
187.32  area and advance the proceeds of the levy to the city for 
187.33  deposit in the debt service fund for the obligations.  The city 
187.34  must reimburse the council for the advance to the extent the 
187.35  deficient revenues are later collected. 
187.36     (e) Taxes levied by the council because of credit 
188.1   enhancement under this subdivision do not affect the amount or 
188.2   rate of taxes that may be levied by the council for other 
188.3   purposes and are not subject to limit as to rate or amount. 
188.4      (f) The council and each city that participates in the 
188.5   credit enhancement program may enter into agreements they 
188.6   determine to be necessary to implement the credit enhancement 
188.7   program.  The agreements may extend over any period, 
188.8   notwithstanding any law to the contrary. 
188.9      <b>EFFECTIVE DATE:</b>  Sections 24, 25, 26, and 28 do not require 
188.10  local approval because Minnesota Statutes, section 645.023, 
188.11  subdivision 1, paragraph (a), applies.  Sections 24, 25, 26, and 
188.12  28 are effective June 1, 2000.  Section 27 is effective for each 
188.13  of the cities of Bloomington, Burnsville, Eagan, Mendota 
188.14  Heights, Minneapolis, Richfield, and St. Paul the day after the 
188.15  governing body of each city and its chief clerical officer, 
188.16  together with the governing body of each affected county and 
188.17  school district and its chief clerical officer, timely complete 
188.18  their compliance with Minnesota Statutes, sections 469.1782, 
188.19  subdivision 2, and 645.021, subdivisions 2 and 3. 
188.20     Sec. 29.  [BROOKLYN PARK EDA; TIF DISTRICT NO. 18.] 
188.21     The 1998 amendments to Minnesota Statutes, section 469.176, 
188.22  subdivision 7, as set forth in Laws 1998, chapter 389, article 
188.23  11, section 6, apply to the Brooklyn Park economic development 
188.24  authority's tax increment financing district No. 18, 
188.25  notwithstanding the effective date of the amendments. 
188.26     <b>EFFECTIVE DATE:</b>  This section is effective the day after 
188.27  the governing body of the city of Brooklyn Park and its chief 
188.28  clerical officer timely complete their compliance with Minnesota 
188.29  Statutes, section 645.021, subdivisions 2 and 3. 
188.30     Sec. 30.  [CITY OF FOUNTAIN; TIF DURATION EXTENSION.] 
188.31     The governing body of the city of Fountain may extend the 
188.32  duration of tax increment financing district 1-1 through 
188.33  December 31, 2008, notwithstanding the provision of Minnesota 
188.34  Statutes, section 469.176, subdivision 1b.  The extension under 
188.35  this section is intended to correct an error in calculation of 
188.36  the increment after a division of a parcel in the tax increment 
189.1   financing district.  As a result, the provisions of Minnesota 
189.2   Statutes, section 469.1782, subdivision 1, do not apply to the 
189.3   district. 
189.4      <b>EFFECTIVE DATE:</b>  This section is effective the day after 
189.5   the governing bodies of the city, county, and school district, 
189.6   and their chief clerical officers, timely complete their 
189.7   compliance with Minnesota Statutes, sections 469.1782, 
189.8   subdivision 2, and 645.021, subdivisions 2 and 3. 
189.9      Sec. 31.  [MENDOTA HEIGHTS TAX INCREMENT FINANCING 
189.10  DISTRICT; CONTINUATION.] 
189.11     Notwithstanding the provisions of Minnesota Statutes, 
189.12  section 469.1764, or any other law, tax increment financing 
189.13  district No. 1 established by the city of Mendota Heights in 
189.14  1981 shall continue in effect for its original authorized 
189.15  duration, subject to the condition that, except for expenditures 
189.16  to pay preexisting obligations described in Minnesota Statutes, 
189.17  section 469.1764, subdivision 5, paragraphs (b) and (c), all 
189.18  future expenditures of tax increment shall not exceed $4,500,000 
189.19  and shall be limited to the city's freeway road project 
189.20  substantially as described in the city's application for a grant 
189.21  from the livable communities demonstration account of the 
189.22  metropolitan livable communities fund. 
189.23     <b>EFFECTIVE DATE:</b>  This section is effective the day after 
189.24  approval by the governing body of the city of Mendota Heights 
189.25  and compliance with Minnesota Statutes, section 645.021, 
189.26  subdivision 3. 
189.27     Sec. 32.  [REDEVELOPMENT DISTRICT FOR MINNEAPOLIS CENTRAL 
189.28  LIBRARY.] 
189.29     Subdivision 1.  [AUTHORIZATION.] Upon approval of the 
189.30  governing body of the city of Minneapolis by resolution, the 
189.31  Minneapolis community development agency may establish a 
189.32  redevelopment tax increment financing district to finance the 
189.33  construction of the Minneapolis central library.  The governing 
189.34  body may approve establishment of the district only if it makes 
189.35  a finding that at least 60 percent of the cost of the project 
189.36  will be paid for from sources of financing other than tax 
190.1   increments.  The district is a redevelopment district subject to 
190.2   Minnesota Statutes, sections 469.174 to 469.179, except as 
190.3   provided in this section. 
190.4      Subd. 2.  [DISTRICT AREA.] If approved, the boundaries of 
190.5   the district are as follows: 
190.6      Starting at the point of intersection of the southeasterly 
190.7      line of Marquette Avenue and the southwesterly line of 
190.8      Fifth Street South, thence northwesterly along the 
190.9      southwesterly line of Fifth Street South to its 
190.10     intersection with the northwesterly line of Nicollet Mall, 
190.11     thence northeasterly along the northwesterly line of 
190.12     Nicollet Mall to its intersection with the southwesterly 
190.13     line of Fourth Street South, thence northwesterly along the 
190.14     southwesterly line of Fourth Street South to its 
190.15     intersection with the northwesterly line of Hennepin 
190.16     Avenue, thence northeasterly along the northwesterly line 
190.17     of Hennepin Avenue to its intersection with the 
190.18     northeasterly line of Washington Avenue, thence 
190.19     southeasterly along the northeasterly line of Washington 
190.20     Avenue to its intersection with the southeasterly line of 
190.21     Nicollet Mall, extended, thence southwesterly along the 
190.22     southeasterly line of Nicollet Mall to its intersection 
190.23     with the northeasterly line of Third Street South, thence 
190.24     southeasterly along the northeasterly line of Third Street 
190.25     South to its intersection with the southeasterly line of 
190.26     Marquette Avenue, thence southwesterly along the 
190.27     southeasterly line of Marquette Avenue to the point of 
190.28     beginning.  All in the city of Minneapolis, county of 
190.29     Hennepin. 
190.30     Subd. 3.  [EXCEPTIONS TO APPLICABILITY OF GENERAL LAW.] (a) 
190.31  Notwithstanding the requirements of Minnesota Statutes, section 
190.32  469.174, subdivision 10, the district is a redevelopment 
190.33  district. 
190.34     (b) Minnesota Statutes, section 469.176, subdivisions 4g 
190.35  and 4j, do not apply to tax increment revenue generated by the 
190.36  district. 
191.1      (c) Minnesota Statutes, section 469.1782, subdivision 1, 
191.2   does not apply to the district. 
191.3      Subd. 4.  [DURATION OF DISTRICT.] Notwithstanding the 
191.4   provisions of Minnesota Statutes, section 469.176, subdivision 
191.5   1b, no tax increment may be paid to the authority after 30 years 
191.6   from the date of receipt by the authority of the first increment.
191.7      <b>EFFECTIVE DATE:</b>  This section is effective upon compliance 
191.8   with Minnesota Statutes, sections 469.1782, subdivision 2, and 
191.9   645.021, subdivision 3. 
191.10     Sec. 33.  [MINNEAPOLIS COMMUNITY DEVELOPMENT AGENCY; 
191.11  HOUSING DISTRICT.] 
191.12     Subdivision 1.  [AUTHORIZATION.] Upon approval of the 
191.13  governing body of the city of Minneapolis, the Minneapolis 
191.14  community development agency may establish a housing tax 
191.15  increment financing district comprised of the property 
191.16  identified as property identification number 27-029-24-34-0025, 
191.17  known as 215 Oak Grove Street, for the purpose of preserving 
191.18  affordable housing that meets the requirements of Minnesota 
191.19  Statutes, section 469.174, subdivision 11. 
191.20     Subd. 2.  [ORIGINAL NET TAX CAPACITY.] Notwithstanding the 
191.21  provisions of Minnesota Statutes, sections 469.174, subdivision 
191.22  7, and 469.177, subdivision 1, the original net tax capacity of 
191.23  the district shall be zero. 
191.24     <b>EFFECTIVE DATE:</b>  This section is effective upon compliance 
191.25  by the city of Minneapolis with the requirements of Minnesota 
191.26  Statutes, section 645.021, subdivisions 2 and 3. 
191.27     Sec. 34.  [ST. PAUL HOUSING AND REDEVELOPMENT AUTHORITY; 
191.28  HOUSING DISTRICT.] 
191.29     Subdivision 1.  [AUTHORIZATION.] The governing body of the 
191.30  housing and redevelopment authority of the city of St. Paul may 
191.31  create a tax increment financing housing district as provided in 
191.32  this section for a development containing both owner-occupied 
191.33  and residential rental units for mixed income occupancy. 
191.34     Subd. 2.  [AREA.] The housing district authorized in this 
191.35  section may only be created in the northeast quadrant of 
191.36  downtown St. Paul, which is defined as the approximately 15-acre 
192.1   area bounded by Interstate 94 on the north and east, Jackson 
192.2   Street on the west, and Seventh Street on the south, together 
192.3   with the west side of Jackson Street to midblock between 
192.4   Interstate 94 and Seventh Street. 
192.5      Subd. 3.  [INCOME REQUIREMENTS FOR COMBINED OWNER-OCCUPIED 
192.6   AND RESIDENTIAL RENTAL DEVELOPMENT.] (a) Notwithstanding the 
192.7   income requirements in Minnesota Statutes, section 469.174, 
192.8   subdivision 11, or 469.1761, a housing district in the northeast 
192.9   quadrant means a type of tax increment financing district that 
192.10  consists of a project, or a portion of a project, intended for 
192.11  occupancy, in part, by persons of low and moderate income as 
192.12  defined in chapter 462A, Title II, of the National Housing Act 
192.13  of 1934; the National Housing Act of 1959; the United States 
192.14  Housing Act of 1937, as amended; Title V of the Housing Act of 
192.15  1949, as amended; any other similar present or future federal, 
192.16  state, or municipal legislation, or the regulations promulgated 
192.17  under any of those acts, as further set forth in this section.  
192.18  Twenty percent of the units in the development in the housing 
192.19  district must be occupied by individuals whose family income is 
192.20  equal to or less than 50 percent of area median gross income and 
192.21  an additional 60 percent of the units in the development in the 
192.22  housing district must be occupied by individuals whose family 
192.23  income is equal to or less than 115 percent of area median gross 
192.24  income.  Twenty percent of the units in the development in the 
192.25  housing district shall not be subject to any income limitations. 
192.26     (b) For purposes of this section, family income means the 
192.27  median gross income for the area as determined under section 42 
192.28  of the Internal Revenue Code of 1986, as amended.  The income 
192.29  requirements of this subdivision shall be deemed to be satisfied 
192.30  if the sum of qualified owner-occupied units and qualified 
192.31  residential rental units equals the required total number of 
192.32  qualified units.  Owner-occupied units must be initially 
192.33  purchased and occupied by individuals whose family income 
192.34  satisfies the income requirements of this subdivision.  For 
192.35  residential rental property, the income requirements of this 
192.36  subdivision apply for the duration of the tax increment district.
193.1      (c) The development in the housing district, but not the 
193.2   project, does not qualify under this subdivision if the fair 
193.3   market value of the improvements which are constructed for 
193.4   commercial uses or for uses other than owner-occupied and rental 
193.5   mixed-income housing consists of more than 20 percent of the 
193.6   total fair market value of the planned improvements in the 
193.7   development plan or agreement.  The fair market value of the 
193.8   improvements may be determined using the cost of construction, 
193.9   capitalized income, or other appropriate method of estimating 
193.10  market value. 
193.11     <b>EFFECTIVE DATE:</b>  This section is effective the day after 
193.12  the governing body of the city of St. Paul and its chief 
193.13  clerical officer timely comply with Minnesota Statutes, section 
193.14  645.021, subdivisions 2 and 3. 
193.15     Sec. 35.  [WASHINGTON COUNTY HRA INCREASED TO SEVEN.] 
193.16     Notwithstanding Minnesota Statutes, section 469.006, 
193.17  subdivision 1, the Washington county housing and redevelopment 
193.18  authority has seven members.  The county board must appoint one 
193.19  member from each county commissioner district after receiving a 
193.20  recommendation for the position from the district's county 
193.21  commissioner.  One housing and redevelopment commissioner must 
193.22  be appointed by the county board to represent the county at 
193.23  large.  One authority member must be appointed by the county 
193.24  board from among county residents who are directly assisted by 
193.25  the public housing agency as defined in Code of Federal 
193.26  Regulations, title 24, part 964.  The first appointee to an 
193.27  at-large position serves for two years; thereafter the term is 
193.28  three years.  The first appointee to the position requiring one 
193.29  directly assisted by the public housing agency serves for one 
193.30  year; thereafter the term is three years. 
193.31     <b>EFFECTIVE DATE:</b>  This section is effective the day after 
193.32  the governing body of Washington county and its chief clerical 
193.33  officer timely complete their compliance with Minnesota 
193.34  Statutes, section 645.021, subdivisions 2 and 3. 
193.35     Sec. 36.  [WINONA TAX INCREMENT FINANCING DISTRICT; 
193.36  RATIFICATION OF EXPENDITURE.] 
194.1      For tax increment financing district No. 2, approved by the 
194.2   city of Winona on August 1, 1980, the expenditure of tax 
194.3   increments before January 1, 1998, to finance, in part, the 
194.4   construction of improvements to the existing municipal 
194.5   wastewater treatment plant is ratified and deemed an expenditure 
194.6   within the geographic area of the tax increment financing 
194.7   district, and Minnesota Statutes, section 469.1764, does not 
194.8   apply to the tax increment financing district. 
194.9      <b>EFFECTIVE DATE:</b>  This section is effective upon approval by 
194.10  the Winona city council and compliance with Minnesota Statutes, 
194.11  section 645.021. 
194.12     Sec. 37.  [CLARIFICATION.] 
194.13     Existing corporations that reported to the state auditor 
194.14  under Minnesota Statutes 1998, section 465.715, subdivision 3, 
194.15  but do not meet the definition of a corporation under section 
194.16  13, subdivision 1, paragraph (b), remain as established and are 
194.17  not affected by this act or by Minnesota Statutes, section 
194.18  465.715. 
194.19     Sec. 38.  [REPEALER.] 
194.20     (a) Minnesota Statutes 1998, section 469.175, subdivision 
194.21  6a, is repealed. 
194.22     (b) Minnesota Statutes 1998, section 465.715, subdivisions 
194.23  1, 2, and 3; and Minnesota Statutes 1999 Supplement, section 
194.24  465.715, subdivision 1a, are repealed. 
194.25     <b>EFFECTIVE DATE:</b>  Paragraph (a) of this section is effective 
194.26  for reports due in 2001 and subsequent years. 
194.27                             ARTICLE 11
194.28                           MISCELLANEOUS
194.29     Section 1.  Minnesota Statutes 1998, section 16A.46, is 
194.30  amended to read: 
194.31     16A.46 [LOST OR DESTROYED WARRANT DUPLICATE; INDEMNITY.] 
194.32     The commissioner may issue a duplicate to an owner if the 
194.33  loss or destruction of an unpaid warrant is documented by 
194.34  affidavit.  When the duplicate is issued, the original is void.  
194.35  The commissioner may require an indemnity bond from the 
194.36  applicant to the state for double the amount of the warrant for 
195.1   anyone damaged by the issuance of the duplicate.  The 
195.2   commissioner may refuse to issue a duplicate of an unpaid state 
195.3   warrant.  If the commissioner acts in good faith the 
195.4   commissioner is not liable, whether the application is granted 
195.5   or denied.  For an unpaid refund or rebate issued under a tax 
195.6   law administered by the commissioner of revenue that has been 
195.7   lost or destroyed, an affidavit is not required for the 
195.8   commissioner to issue a duplicate if the duplicate is issued to 
195.9   the same name and social security number as the original warrant 
195.10  and that information is verified on a tax return filed by the 
195.11  recipient. 
195.12     <b>EFFECTIVE DATE:</b>  This section is effective the day 
195.13  following final enactment. 
195.14     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
195.15  16D.09, subdivision 2, is amended to read: 
195.16     Subd. 2.  [NOTIFICATION OF ACTION BY DEPARTMENT OF 
195.17  REVENUE.] When the department of revenue has determined that a 
195.18  debt is uncollectible and has written off that debt as provided 
195.19  in subdivision 1, the commissioner of revenue must make a 
195.20  reasonable attempt to notify the debtor of that action and of 
195.21  the release of any liens imposed under section 270.69 related to 
195.22  that debt, within 30 days after the determination has been 
195.23  reported to the commissioner of finance.  A lien imposed under 
195.24  section 270.69 need not be released unless after the write-off 
195.25  of uncollectible debt there is no remaining collectible 
195.26  liability recorded on the lien. 
195.27     <b>EFFECTIVE DATE:</b>  This section is effective for debts 
195.28  written off on or after the day following final enactment. 
195.29     Sec. 3.  Minnesota Statutes 1998, section 270.063, is 
195.30  amended by adding a subdivision to read: 
195.31     Subd. 4.  [FEDERAL TAX REFUND OFFSET FEES.] For fees 
195.32  charged by the department of the treasury of the United States 
195.33  for the offset of federal tax refunds that are deducted from the 
195.34  refund amounts remitted to the commissioner, the unpaid debts of 
195.35  the taxpayers whose refunds are being offset to satisfy the 
195.36  debts shall be reduced only by the actual amount of the refund 
196.1   payments received by the commissioner. 
196.2      <b>EFFECTIVE DATE:</b>  This section is effective for offsets of 
196.3   refunds made on or after the day following final enactment. 
196.4      Sec. 4.  Minnesota Statutes 1999 Supplement, section 
196.5   270.65, is amended to read: 
196.6      270.65 [DATE OF ASSESSMENT; DEFINITION.] 
196.7      For purposes of taxes administered by the commissioner, the 
196.8   term "date of assessment" means the date a liability reported on 
196.9   a return was filed entered into the records of the commissioner 
196.10  or the date a return should have been filed, whichever is later; 
196.11  or, in the case of taxes determined by the commissioner, "date 
196.12  of assessment" means the date of the order assessing taxes or 
196.13  date of the return made by the commissioner; or, in the case of 
196.14  an amended return filed by the taxpayer, the assessment date is 
196.15  the date additional liability reported on the return, if any, 
196.16  was filed with entered into the records of the commissioner; or, 
196.17  in the case of a check from a taxpayer that is dishonored and 
196.18  results in an erroneous refund being given to the taxpayer, 
196.19  remittance of the check is deemed to be an assessment and the 
196.20  "date of assessment" is the date the check was received by the 
196.21  commissioner. 
196.22     <b>EFFECTIVE DATE:</b>  This section is effective for assessments 
196.23  made on or after the date of final enactment. 
196.24     Sec. 5.  Minnesota Statutes 1998, section 270A.03, 
196.25  subdivision 2, is amended to read: 
196.26     Subd. 2.  [CLAIMANT AGENCY.] "Claimant agency" means any 
196.27  state agency, as defined by section 14.02, subdivision 2, the 
196.28  regents of the University of Minnesota, any district court of 
196.29  the state, any county, any statutory or home rule charter city 
196.30  presenting a claim for a municipal hospital or a public 
196.31  library or a municipal ambulance service, a hospital district, 
196.32  any public agency responsible for child support enforcement, any 
196.33  public agency responsible for the collection of court-ordered 
196.34  restitution, and any public agency established by general or 
196.35  special law that is responsible for the administration of a 
196.36  low-income housing program. 
197.1      <b>EFFECTIVE DATE:</b>  This section is effective for claims 
197.2   submitted after June 30, 2000. 
197.3      Sec. 6.  Minnesota Statutes 1998, section 289A.35, is 
197.4   amended to read: 
197.5      289A.35 [ASSESSMENTS; COMMISSIONER FILED RETURNS.] 
197.6      The commissioner shall has the authority to make 
197.7   determinations, corrections, and assessments with respect to 
197.8   state taxes, including interest, additions to taxes, and 
197.9   assessable penalties.  The commissioner may audit and adjust the 
197.10  taxpayer's computation of federal taxable income, items of 
197.11  federal tax preferences, or federal credit amounts to make them 
197.12  conform with the provisions of chapter 290 or section 298.01.  
197.13  If a taxpayer fails to file a required return, the commissioner, 
197.14  from information in the commissioner's possession or obtainable 
197.15  by the commissioner, may make a return for the taxpayer.  The 
197.16  return will be prima facie correct and valid.  If a return has 
197.17  been filed, the commissioner shall examine enter the liability 
197.18  reported on the return and may make any audit or investigation 
197.19  that is considered necessary.  The commissioner may use 
197.20  statistical or other sampling techniques consistent with 
197.21  generally accepted auditing standards in examining returns or 
197.22  records and making assessments. 
197.23     <b>EFFECTIVE DATE:</b>  This section is effective the day 
197.24  following final enactment. 
197.25     Sec. 7.  Minnesota Statutes 1999 Supplement, section 
197.26  383D.74, is amended to read: 
197.27     383D.74 [DAKOTA COUNTY; ADMINISTRATIVE PENALTIES.] 
197.28     Subdivision 1.  [PENALTIES.] The Dakota county board may 
197.29  impose an administrative penalty for violation of an ordinance 
197.30  enacted under chapter 103F.  No penalty may be imposed unless 
197.31  the owner has received notice, served personally or by mail, of 
197.32  the alleged violation and an opportunity for a hearing before a 
197.33  person authorized by the county board to conduct the hearing.  A 
197.34  decision that a violation occurred must be in writing.  The 
197.35  amount of the penalty with interest may not exceed the amount 
197.36  allowed for a single misdemeanor violation.  A person aggrieved 
198.1   by a decision under this section may have the decision reviewed 
198.2   in the district court.  If a penalty imposed under this section 
198.3   is unpaid for more than 60 days after the date when payment is 
198.4   due, the county board may certify the penalty to the county 
198.5   auditor for collection to the same extent and in the same manner 
198.6   provided by law for the assessment and collection of real estate 
198.7   taxes. 
198.8      Subd. 2.  [EXPIRATION.] The authority to impose a penalty 
198.9   under this section expires on December 31, 2000 2005. 
198.10     <b>EFFECTIVE DATE:</b>  This section is effective the day 
198.11  following final enactment. 
198.12     Sec. 8.  [PROPERTY TAX REFORM ACCOUNT TRANSFER.] 
198.13     (a) On June 30, 2000, the commissioner of finance shall 
198.14  transfer from the property tax reform account established in 
198.15  Minnesota Statutes, section 16A.1521, to the unrestricted 
198.16  general fund balance any remaining balance in the account except 
198.17  for amounts appropriated for county criminal justice aid under 
198.18  article 9, section 47, low-income housing aid under article 9, 
198.19  section 51, or local government aid increases to small cities 
198.20  under article 9, section 48. 
198.21     (b) Notwithstanding Minnesota Statutes, section 16A.152, 
198.22  subdivision 2, the commissioner of finance shall not allocate 
198.23  any money in fiscal year 2001 to the property tax reform account 
198.24  based on the forecast in November 1999. 
198.25     Sec. 9.  [APPROPRIATION; LEGISLATIVE AUDITOR.] 
198.26     $50,000 is appropriated from the general fund to the 
198.27  legislative auditor to audit the appropriations to the 
198.28  department of revenue for administration of the property tax 
198.29  rebates in Laws 1997, chapter 231, article 16, section 29; and 
198.30  Laws 1998, chapter 389, article 1, section 4; and the 
198.31  appropriation for administration of the sales tax rebate in Laws 
198.32  1999, chapter 243, article 1, section 3.  The purpose of this 
198.33  audit is to determine whether the funds appropriated were 
198.34  expended consistent with the purpose of the appropriations.  The 
198.35  legislative auditor shall report the findings of the audit to 
198.36  the legislature by January 1, 2001. 
199.1      Sec. 10.  [HISTORIC PRESERVATION GRANTS.] 
199.2      (a) $1,500,000 is appropriated from the general fund to the 
199.3   commissioner of trade and economic development for a grant to 
199.4   the Minneapolis community development agency to be used to 
199.5   provide assistance to a historic preservation project for the 
199.6   rehabilitation of the Brew House, a building located on property 
199.7   designated in the National Register of Historic Places as the 
199.8   Minneapolis Brewing Company Historic District. 
199.9      (b) $350,000 is appropriated to the commissioner of 
199.10  administration for a grant to the city of St. Paul to be used to 
199.11  provide assistance to a historic preservation project for the 
199.12  relocation and preservation of the Armstrong House, a registered 
199.13  national landmark property and local designated heritage 
199.14  preservation site.  This appropriation is contingent upon the 
199.15  completion of the sale of the property to the city of St. Paul. 
199.16     Sec. 11.  [APPROPRIATION; COMMISSIONER OF REVENUE.] 
199.17     $....... is appropriated from the general fund to the 
199.18  commissioner of revenue to pay the cost of administration of 
199.19  this act. 
199.20     Sec. 12.  [REPEALER.] 
199.21     Minnesota Rules, part 8160.0300, subpart 4, is repealed. 
199.22     <b>EFFECTIVE DATE:</b>  This section is effective for assessments 
199.23  made on or after the day following final enactment.