Relating to taxation ARTICLE 1 - PROPERTY TAXESRequiring separate certification of county property tax levies for watershed management purposes, requiring county auditor extension of the levies as special taxing district levies; increasing the levy limit for watershed district administrative funds and changing the funds to general funds; providing an alternative for the assignment of bonded indebtedness to land detached from one school district and annexed to another, providing for taxation of the land and assumption of bonded debt by the school district of annexation upon agreement of the school boards of both districts and the county board, requiring detachment and annexation petitions to include a description of the method of assignment; authorizing certain school districts to levy for swimming pool operating costs; authorizing and providing for counties, cities or towns to establish special taxing districts for emergency medical services (EMS), providing for expansion of and withdrawal from the districts and for dissolution; expanding the requirement for public utilities to accept and consider other proposals under the biomass mandate to a proposal for a new facility to satisfy a certain number of megawatts of the electrical generation requirements by a small business sponsored independent power producer facility to be located in the northern quarter of the state and using biomass residue wood, sawdust, bark, chipped wood or brush to generate electricity, qualifying the eligible facility for a personal property tax exemption; expanding the jurisdiction of the small claims division of the tax court to cases involving valuation, assessment or taxation of real or personal property under certain conditions; providing for the determination of the total size of wind energy conversion systems for property tax exemption purposes; providing a temporary property tax exemption for certain newly constructed residential buildings on temporary sites; authorizing developers of new or existing medium or large scale wind energy conversion systems to negotiate with the city or town and county of location to establish a payment in lieu of tax on personal property used to generate electric power to provide fees or compensation to the host jurisdictions to maintain public infrastructure and services; phasing out limited market value for residential, agricultural or seasonal properties taxation purposes; modifying the procedure for property tax assessment of vacant platted land; extending homestead classification to property owners residing in elderly assisted living facilities; expanding the provision providing for special homestead treatment of certain agricultural property; expanding the definition of agricultural products to maple syrup for agricultural property tax classification purposes; modifying certain proposed property tax notice and hearing (truth in taxation) and certain local government unit tax levy reporting requirements; authorizing counties to offer tax-forfeited lands requested to be withheld from sale by towns or cities after expiration of the withholding period upon failure of the town board or city council to submit an application and resolution to acquire the property; modifying certain tax-forfeited land conveyance authority of the commissioner of revenue, the change of use authority of local government units acquiring the lands and certain reversion requirements; authorizing county boards to by resolution establish an alternative method of computing the amount required to repurchase certain long term tax-forfeited homesteaded property, requiring the county assessor to determine the current market value and classification of the property; authorizing the Ramsey county board to sell tax-forfeited lands to local government units for public purposes, specifying certain factors to be considered by the board in determining land values, providing for conveyance by the commissioner and for use of the lands, specifying certain reversion and reporting requirements; expanding the property tax exemption for certain housing projects on the White Earth Indian reservation to housing projects on all Indian reservations; making generic the federal census date for the determination of median household income for targeted neighborhoods designation eligibility purposes; providing payments in lieu of taxes for natural resources lands acquired by the department of transportation (DOT) to replace wetland losses caused by transportation projects; accelerating the repeal of the education finance act of 1992; requiring and providing for commissioner of revenue reconveyance of certain tax-forfeited land in Dakota county to special school district 6, South St. Paul for no consideration under certain conditions; granting the Minnehaha Creek watershed district certain additional levy authority to enforce rules and permits; authorizing and providing for the private sale of certain tax-forfeited land in St. Louis county; authorizing the Red River watershed management board to compensate counties and townships for lost property tax revenue from land becoming tax exempt after board acquisition for a flood damage reduction project; forgiving certain penalties and interest assessed against a certain property owner in St. Louis county under certain payment agreement conditions; authorizing the housing finance agency (HFA) to adopt rules for certification of low income housing qualifying for the reduced property tax rate; repealing certain provisions relating to property tax rate calculations and certain watershed district special levy authority laws ARTICLE 2 - SALES AND USE TAXES Clarifying certain provisions providing for refund of erroneously collected sales taxes to vendors and purchasers; imposing the sales tax on clothing made from fur; clarifying the elimination of the sales tax exemption for temporary storage of property, allowing tax refunds for property stored between certain dates under certain conditions; exempting from the sales tax waste processing equipment of electric generation facilities using waste tires as a primary fuel source; clarifying the definition of person, modifying the definition of sale or purchase relating to food and services, expanding the definitions of retail sale to lease or rental and of retailer to seller, modifying the definitions of sales price, computer software and common carrier and defining or redefining certain terms for sales tax imposition or exemption purposes; updating certain references to the internal revenue code (IRC); providing for the determination of the source of sale for certain products and requiring and providing for multiple points of use exemption certificates for sellers under certain conditions; providing a trade allowance exemption for tangible personal property taken in trade for resale and exempting from the tax ambulance supplies, repair or replacement parts and equipment and petroleum products purchased by ambulance services or transit services receiving reimbursement under medical assistance (MA); clarifying the exemptions for certain items used in the production of energy, for capital equipment, for property transported out of state and for occasional sales of personal property primarily used in a trade or business; qualifying certain limited liability companies for the sales tax exemption for nonprofit groups, hospitals and business incubator or industrial park building materials and supplies under certain conditions; clarifying the definition of outpatient surgical services for exemption purposes; restricting the exemption for regionwide public safety radio communication system products and services to metropolitan area counties; exempting from the sales tax fundraising sales of personal property by or for nonprofit groups under certain conditions and removing the exemption for taxable services at fundraising events; clarifying and modifying the exemption of retailers with exemption certificates from sales tax collection and remittance requirements; expanding the credit for taxes paid to other states to subdivisions of the states; authorizing commissioner of revenue revocation of retailer sales tax permits for violation of certain cigarette or tobacco product purchase thresholds; eliminating the authority of local government units (the city of Duluth) to continue to collect and administer local sales taxes; expanding the requirement for the commissioner to deduct certain administrative costs from local sales tax collections; "Uniform Sales and Use Tax Administration Act", requiring and providing for the commissioner to enter into agreements with other states to simplify and modernize sales and use tax administration, providing for the establishment of standards for multistate sellers; increasing the maximum combined rate for all sales taxes on lodging in the city of Minneapolis; requiring the commissioner by a certain date to prepare plans for submission to the legislature to replace the higher sales tax on liquor and beer and the current liquor tax with a single tax on liquor and the current sales tax on short term motor vehicle rentals with a single tax or fee on the rentals, specifying certain plan requirements; requiring the commissioner to request the member states of the streamlined sales and use tax agreement to adopt a uniform definition for clothing made of fur for sales tax imposition purposes; specifying certain alphabetization, reference correction and renumbering instructions to the revisor of statutes; repealing the replaced sales tax exemption for electricity used for snowmaking at ski facilities and the exemption for materials, supplies and equipment used in the construction of the Minneapolis, St. Paul and Duluth convention centers, the sales taxes on liquor and beer and on short term motor vehicle rentals and an obsolete provision providing for refund of certain sales taxes paid on park trailers ARTICLE 3 - SPECIAL TAXESProviding for an annual increase in police state aid to provide equality with revenues under the tax on automobile risk self insurance; defining initial registration and renewal periods for leased motor vehicle registration tax clarification purposes; modifying the imposition of the petroleum inspection fee; exempting licensed ambulance services from the gasoline and special fuels taxes and reducing the distributor gasoline tax shrinkage allowance; applying the mixed municipal solid waste tax rate to nonmixed municipal solid waste and exempting construction debris generated from presidentially declared disaster area repair and demolition activities from the tax under certain conditions; eliminating certain lawful gambling tax and combined receipts reporting requirements of licensed gambling organizations and the tax savings expenditure restriction; repealing certain provisions providing for insurance premium tax equivalent payments by automobile risk self insurers ARTICLE 4 - FEDERAL UPDATEUpdating certain state income tax provisions to changes in the internal revenue code (IRC) under the consolidated appropriation act of 2001, the installment tax correction act of 2000 and the FSC repeal and extraterritorial income exclusion act of 2000, providing coordinating language for foreign operating companies (FOCs); updating the definition of internal revenue code for property tax refund and estate tax purposes ARTICLE 5 TAX ADMINISTRATION Providing for the collection of student loan debts under state debt collection procedures; requiring a proof of sales tax payment certificate for initial registration of all-terrain vehicles (ATV), exception; requiring the payment of fees under the safe drinking water act to the commissioner of health in lieu of the commissioner of revenue; clarifying the authority of the commissioner of revenue to bar individuals representing taxpayers from further practice before the commissioner; authorizing and providing for the commissioner to enter into agreements with governing bodies of federally recognized Indian reservations relating to refund or sharing of fees imposed on on-reservation activities; making consistent the time limit for commissioner warrants to county sheriffs for levy and sale of property for failure to pay taxes with the time limit for collection of delinquent taxes; expanding the provision requiring the listing and posting of delinquent taxpayers to certain corporate franchise tax payment delinquencies; increasing income limits for the medical care debt exclusion from revenue recapture and setting the base year for annual inflation adjustments; classifying data collected under the revenue recapture act by the department of revenue from claimant agencies relating to filed claims and criteria or information used in determining whether or not to investigate alleged criminal violations of laws administered by the commissioner, expanding the classification of data provided by tax informers and reclassifying inactive investigative data; expanding the exemption for personal property used for pollution control, requiring the commissioner to make the exemption decision based on information and advice from the pollution control agency (PCA); authorizing the commissioner to approve county assessor appointments on a probationary basis; extending the time limit for county commissioners to fill county assessor vacancies and clarifying the authority of the commissioners to terminate county assessor terms; eliminating the requirement for commissioner approval of joint assessment agreements between counties and cities or towns; expanding real property valuation and notice requirements and requiring the commissioner to specify the form of the notice; changing local boards of review or equalization to boards of appeal and equalization and eliminating certain informational meeting requirements relating to the taxation of noncommercial seasonal residential recreational property; clarifying the authority of counties to sell personal property abandoned on tax-forfeited land; modifying the procedure for refund of mortgage registry or deed tax overpayments; clarifying the definition of consideration in contracts for deed and the definition of corporate reorganization for deed tax determination purposes, subjecting transfers occurring during corporate or partnership reorganization to a minimal deed tax and modifying the deed tax computation formula; clarifying the authority of purchasers to apply directly to the commissioner for sales tax refunds; modifying the formula for computation of the income tax liability of certain part year residents; providing for electronic political contribution refund claims, authorizing the commissioner to accept the number on the official receipt as documentation of the contribution; expanding eligibility for the dependent care and working family income tax credits and modifying the inflation adjustment requirements of the commissioner; modifying the marriage penalty credit; allowing certain additional depreciation modifications for corporate alternative minimum tax (AMT) purposes; extending the effectiveness of the notice by employers to taxpayers of the withholding of delinquent taxes; setting a fixed amount of rent to be used in calculating property tax refunds for residents of nursing homes, intermediate care facilities (ICF MR) and adult foster care; modifying the application of joint property tax refunds to the payment of outstanding tax liability of spouses; requiring storage of fuel in a supply tank separate from a licensed motor vehicle fuel tank for off-highway business use gasoline or special tax refund eligibility purposes; adding a provision previously inadvertently omitted authorizing and providing for commissioner determinations, corrections and assessments relating to fuel taxes or fees; imposing a statute of limitations on fuel tax or fee overpayment refund claims and clarifying the time limit for refund claims based on qualifying use; authorizing the commissioner to cancel certain erroneously issued or reissued sales tax permits; expanding the sales tax exemption for prescription drugs and clarifying the exemption for sales to hospitals and nursing homes owned and operated by local government units; authorizing the commissioner to enter into an agreement with the commissioner of transportation (DOT) for collection of the sales tax on aircraft; expanding the motor vehicle sales tax exemption for vehicles purchased by residents of other states to residents of other countries and excluding public schools, universities or libraries from the exemption for motor vehicles purchased for charitable, religious or educational purposes; modifying the statute of limitations for assessments for cigarette and tobacco or liquor tax overpayments and for liquor tax overpayment refund claims after receipt of an assessment order; subjecting claimants for liquor tax refunds based on bad debt to certain federal tax change notice requirements; imposing a use tax on mixed municipal solid waste management services; requiring local tobacco licensing authorities to send certain information on license holders to the commissioner of revenue within a certain number of days of license issuance; changing the date for state reimbursement to local government units for taxes lost under the metropolitan agricultural preserves act; requiring the commissioner to report to the legislature by a certain date on the advisability of terminating individual income tax reciprocity with Wisconsin; repealing the obsolete ethanol credit for sales to governmental units or school districts, the tentative carryback adjustments for income tax operating loss deductions, certain income tax provisions applicable to estates and trusts, a certain provision providing for the individual tax liability of partners of partnerships, the motor vehicle sales tax refund for park trailers, the income tax credit and property tax refund for property taxes paid on seasonal residential recreational property and certain subsequently codified cigarette and tobacco tax rules ARTICLE 6 - LOCAL DEVELOPMENTExempting preexisting tax increment financing districts from contributing to the taconite tax relief area fiscal disparities (revenue distribution) pool until decertification; providing additional enterprise zone allocations to the western border cities of Breckenridge, Dilworth, East Grand Forks, Moorhead and Ortonville; expanding the definition of bonds for TIF purposes to interfund loans and advances; clarifying the definitions of redevelopment and renewal and renovation districts relating to the blight test and modifying the definition of economic development district; eliminating the authority to waive increments for housing, redevelopment and hazardous substance subdistricts; requiring the filing of copies of TIF plans and amendments and development or project plans with the commissioner of revenue and requiring the commissioner to provide copies to the state auditor upon request; modifying the duration limit for housing or redevelopment districts or hazardous substance subdistricts and clarifying calculation of the limit for the subdistricts; prohibiting the use of tax increments by certain districts for administrative expenses for certain projects; recodifying the provision prohibiting the use of tax increments for social, recreational or conference facilities; requiring separate assessment of the estimated value of improvements to tax exempt property after certification at the request of the development authority; authorizing the payment of project costs with interfund loans under certain conditions; clarifying the definition of governing body for town tax abatement authority purposes and the application of the duration extension for abatements; limiting the referendum exemption for abatement bonds; expanding the authority to spend increments on low income housing activities outside the project area; authorizing a metropolitan area agreement to qualify low rent public housing built under the Hollman decree for the property tax exemption, requiring payments in lieu of taxes; authorizing and providing for the city of Luverne to designate a certain number of border city development zones ARTICLE 7 - SUSTAINABLE FOREST INCENTIVE ACT Modifying certain provisions under the auxiliary forest tax law, qualifying previously enrolled lands for the sustainable forest incentive program, providing for calculation of the tax difference; expanding the definition of refund under the revenue recapture act to sustainable forest tax payments; enacting the "Sustainable Forest Incentive Act" to encourage private forest landowner long term commitments to sustainable forest management, specifying property eligibility, application and certification requirements and providing for calculation of the incentive payment, requiring removal of property from the program for tax delinquency; repealing the tree growth tax lawARTICLE 8 - CIVIL AND CRIMINAL PENALTIESModifying the imposition of civil penalties for nonpayment of taxes and for failure to file returns to provide for one time in lieu of graduated penalties for certain violations and to reduce certain current one time penalties; imposing additional penalties with interest for extended delinquency; expanding the penalty for frivolous returns to frivolous refund claims and the criminal penalty for filing false or fraudulent cigarette and tobacco tax returns to fraudulent invoices; appropriating money to the commissioner of revenue to implement the penalty changes; repealing the cap on certain combined penalties ARTICLE 9 - SEIZURES OF CONTRABAND Modifying certain provisions providing for the seizure and disposition of certain property for violations of gasoline or special fuels, sales, gambling, cigarette and tobacco and liquor tax laws (contraband) ARTICLE 10 - ELECTRONIC FILING AND PAYMENT Providing for electronic filing and payment of hazardous waste generator, mortgage registry, income, corporate franchise, entertainer, withholding, sales and use, MinnesotaCare gross earnings, pull tab and tipboard, cigarette and tobacco products, insurance gross premium and liquor taxes and the metropolitan solid waste landfill fee; defining electronic means; date of delivery or payment to be the date of the confirmation time and date stamp of the transaction; requiring only a single notice to the taxpayer by the commissioner of revenue of the requirement to pay electronically; changing the date for vendor filing and payment of sales and use taxes ARTICLE 11 - MISCELLANEOUSAuthorizing temporary waiver of state agency services fees in presidentially declared disaster areas with the approval of the governor; transferring the administration and enforcement of the unfair cigarette sales act from the commissioner of revenue to the commissioner of commerce; authorizing the commissioner of revenue to reissue lapsed uncashed tax refund or rebate checks to taxpayers showing reasonable cause, time limit, providing an open appropriation to the commissioner for checks reissuance purposes; requiring the commissioner to allow taxpayers to request the sending of notices and correspondence between the department of revenue and the taxpayer to holders of the power of attorney; authorizing and providing for commissioner temporary publication of names of certain delinquent taxpayers; requiring the commissioner to annually report to the commissioner of commerce as unclaimed property certain uncashed checks or warrants for tax overpayments; extending the time limit for the filing of financial reports by cities and towns located in presidentially declared disaster areas under certain conditions; excluding all employer distributions to employees participating in payroll contribution plans from the definition of lottery for gambling crimes purposes; requiring the commissioner of finance to transfer a portion of certain appropriations for the department of revenue to the department of commerce for unfair cigarette sales act administration and enforcement purposes; repealing the property tax reform account and the provision providing for refusal to issue distributor or subjobber licenses to unfair cigarette sales act violators(ra)