E Relating to the organization, operation and financing of state + government; modifying certain tax policy provisions ARTICLE 1 � SALES TAXExpanding the limited used vehicle license provision allowing motor +vehicle sales by nonprofit charitable organizations without the requirement +to transfer title to sales to licensed motor vehicle dealers; clarifying the +exemption from motor vehicle certificate of title requirements for motor vehicles +owned by manufacturers or dealers and used for demonstration or testing for +sales purposes; providing a separate sales and use tax return filing date +for certain sellers voluntarily registered in Minnesota under the streamlined +sales and use tax agreement; eliminating the alternative filing time limit for +filing sales and use tax overpayment claims for bad debt loss, defining bad +debt and authorizing certified service providers file bad debt claims on +behalf of clients; providing for purchaser requests to vendors for the refund +of taxes collected in error; clarifying the definition of sale or purchase +relating to computer software and including certain motor vehicle rentals in the definition; defining or redefining certain terms for sales tax +imposition under the streamlined sales and use tax agreement and placing a certain +restriction on withdrawal from the agreement; providing for amnesty for seller +uncollected or unpaid taxes under certain conditions and adopting certain +sourcing rules under the agreement; specifying certain requirements for sourcing telecommunication services; clarifying the sales tax exemption for +certain clothing accessories or equipment and for certain equipment used in +the production of computer software and providing an exemption for +certain service loaner vehicles; making permanent the temporary exemption for direct +mail (printed materials) delivery or distribution charges; modifying the +period for computation of interest on refunds to purchasers; prescribing the +procedure for deducting uncollectible debt; prohibiting local government units from+ imposing sales taxes at different rates, exceptions; modifying the use of zip +codes in determining the location of sale for local tax imposition purposes; +requiring and imposing a time limit for certain notices relating to effective +dates for changes in local sales tax rates; granting relief from incorrectly +collected sales tax liability for sellers and certified service providers under+ certain erroneous data conditions; providing an option to motor vehicle +dealers to pay the motor vehicle sales tax on certain vehicles based on the +reasonable rental value of the vehicle under certain conditions; authorizing and +providing for the city of Newport to impose a local lodging tax to fund economic +development and redevelopment in the city, limit; repealing the sales tax +exemption for used farm tires ARTICLE 2 � PROPERTY TAXEstablishing an alternative to the detachment and annexation process +for residential property parcels located within the boundaries of more +than one school district and classified as residential property for education +funding purposes; clarifying the requirement for the payment of personal +property taxes on manufactured homes before issuance of a certificate of title for +transfer purposes; extending the deadlines for construction of certain +proposed electric generation facilities using residue wood or poultry litter biomass or hydroelectricity as fuel for personal property tax exemption purposes+ and providing an exemption for certain combined cycle combustion turbine +facilities constructed between certain dates; authorizing the commissioner of +revenue to disclose to county assessors a listing of parcels of property +qualifying for the homestead property tax classification for the disabled; extending+ the property tax exemption for business incubator property owned by +nonprofit charitable organizations; reducing the frequency for appraisal of +real property subject to taxation; specifying certain eligibility requirements +relating to ownership and active farming of agricultural land for special +homestead treatment purposes; expanding and extending eligibility for the +homestead classification for the permanently and totally disabled and +eliminating to annual filing requirement; providing homestead classification for +certain resorts owned by limited liability companies; clarifying agricultural+ land classification eligibility for land enrolled in the reinvest in +Minnesota (RIM) or conservation reserve programs (CRP); requiring the commissioner to+ by a certain date develop a handbook of procedures, responsibilities and requirements for local boards of appeal and equalization; authorizing+ cities to permanently increase property tax levies to levels exceeding charter +limits to replace local government aid (LGA) reductions; modifying the time +limit for providing certain information to the county assessor for hearing +petition filing purposes and providing for extension of the time limit under +certain conditions; excluding from the definition of claimant for property +tax refund purposes individuals with rent constituting property taxes paid by +the group residential housing (GRH) program; providing for the status of the +Cook county hospital district and for annual adjustment for inflation of the +hospital district property tax levy AND ESTATE TAX INITIATIVESModifying the estate tax return filing requirement, requiring filing +by estates required to file a federal estate tax return; authorizing the +commissioner of revenue to extend the filing time limit for the returns; specifying +the liability of product or service vendors for repayment to the +commissioner of income tax refunds for disallowed education credits; specifying the +time limit for accrual of interest on estate tax overpayments for interest +computation purposes; increasing the penalty for filing frivolous returns; +modifying the addition to federal taxable income for individuals and corporations +relating to the depreciation deduction and eliminating certain subtractions for +individuals for income tax purposes; clarifying the computation of income tax +liability for nonresidents; providing for inflation adjustment of the working +family credit; eliminating the eligibility floor for and clarifying the computation +of the marriage penalty credit; modifying certain conditions for the +assignment of income tax refunds to financial institutions or qualifying +organizations relating to education credit certification; modifying the definition +of nontaxable retirement and disability benefits and eliminating the +definition of social security benefits above the second federal threshold under the subtraction for the elderly and disabled; eliminating certain +pensions from the definition of Minnesota gross estate for estate tax purposes and +modifying the tax computation formula; removing the estate tax exemptions for +certain public employee pensions; eliminating the sunset on assignment of income tax+ refunds resulting from the education credit; repealing certain provisions +reducing the working family credit by the abolished alternative minimum tax (AMT) +and providing for inflation adjustment of the marriage penalty credit and+ certain obsolete or duplicative rules relating to capital deductions and the +tentative carryback adjustment under the franchise tax and the withholding tax+ for nonresidents ARTICLE 4 � FEDERAL UPDATEUpdating certain state income tax and property tax refund provisions +to changes in the internal revenue code (IRC) and updating the definition of +internal revenue code under tax administration and compliance provisionsARTICLE 5 � DEPARTMENT PROPERTY TAX INITIATIVESClarifying the authority of the commissioner of revenue to adopt +rules relating to nontax laws administered by the commissioner; eliminating the +requirement for commissioner or local government unit notice to taxpayers of +certain property valuation or assessment appeal requirements; providing +property tax exemptions for property owned by the comprehensive health association+ (MCHA), by private cemeteries and by the western Lake Superior sanitary +board, for certain unfinished sale or rental projects, for pedestrian skyway and+ people mover systems and publicly owned parking structures and for municipal recreation and certain water and wastewater treatment facilities; +modifying a certain requirement relating to the payment of taxes before the +recording of conveyance documents by condominium, townhouse, common interest +ownership community or other planned unit development homeowners associations; eliminating the requirement for town and city assessors to be +residents of the state and prohibiting city and county assessors from holding certain +other offices; clarifying certain seasonal residential recreational +property classification, valuation and taxation provisions; eliminating a +certain provision requiring counties to spend a certain additional amount +relating to temporary aid for court transfer costs maintenance of effort +requirements purposes; modifying the date for certification to the commissioner of+ revenue by the commissioner of human services of average nonfederal out of +home placement costs for the homestead and agricultural credit aid offset; clarifying a certain provision providing for utility company appeal +of property classification, valuation or exemption and expanding the provision to+ railroad companies; clarifying a certain high voltage transmission line +qualification requirement for involved property power line credit eligibility +purposes; prohibiting local boards of appeal and equalization from granting +exemptions to or ordering property removed from the property tax rolls; changing +the state general levy to the state general levy base amount for commercial +industrial and seasonal residential recreational property tax inflation +adjustment purposes; providing for commissioner of revenue certification to +county auditors of preliminary state general levy rates to be used to +prepare proposed property tax notices and requiring certification of final rates to +county auditors by a certain later date to be used in spreading taxes; +eliminating the state from property tax apportionment provisions and specifying +certain responsibilities of county treasurers relating to the receipt of +state property taxes; changing the place for filing all lien notices for the +collection of delinquent personal property taxes to the office of the secretary of +state; expanding the authority of county auditors to sell certain unimproved tax-forfeited lands in cities or towns to property consisting of an +undivided interest or land and improvements, authorizing sale to adjacent +property owners for appraised value without first offering the property to the +public; providing for the apportionment of proceeds from tax-forfeited land +sales to taxing districts for payment of state general tax levy delinquencies; clarifying the definition of claimant, changing certain references +to property to land under and providing for continuation or termination of the +enrollment of land in the sustainable forest resource management incentive +program after death; specifying a deadline for and requiring notice to the county +auditor of the adoption of a resolution authorizing development authorities to +exercise the original tax rate option relating to preexisting tax increment +financing (TIF) districts for tax payment period continued effectiveness +purposes; removing the adjustment for manufactured home property for +metropolitan revenue distribution net tax capacity purposes; modifying certain property +tax payment requirements for the filing of instruments under the common interest +ownership act; modifying or clarifying certain effective dates for use deeds +for the conveyance of tax-forfeited property to local government units +without cost and for certain changes in the HACA offset for out of home placement +costs; clarifying the pre-1940 housing percentage calculation for local +government aid (LGA) basis purposes; repealing a certain provision relating to +obsolete auditor assessment books, new construction low income housing aid and+ certain rules relating to annual valuation of railroad operating propertyARTICLE 6 � DEPARTMENT SALES AND USE TAX INITIATIVESModifying certain conditions for the refund of erroneously paid sales+ taxes to purchasers; clarifying the penalty for retailer failure to report +local sales taxes on sales tax returns and imposing a penalty for failure to +properly complete the returns; clarifying the application of the sales tax to +certain services and the definition of farm machinery for sales tax exemption+ purposes; expanding the definition of food sold through vending machines for +sales tax application purposes to honor payments and clarifying the taxability +of certain other vending machine items; modifying certain exemption certificate requirements for burden of proof purposes; clarifying the capital +equipment exemption for ready mix concrete equipment and defining integrated +production process for manufacturing, mining, fabricating and refining purposes;+ providing a transition period for the taxation of goods or services under +preexisting bids or contracts; expanding the exemption for farm machinery; +clarifying the taxation of noncollector vehicles, eliminating the requirement for +the department of public safety to prepare and distribute an above market+ list of automobiles; modifying the exemption qualification for motor vehicles+ purchased by dealers; repealing a certain provision exempting out of state +retailers from the requirement to collect locally imposed sales taxes and certain +rules relating to exemptions, price discounts, reporting requirements, the +assessment and collection time limit and unpaid liabilities ARTICLE 7 � DEPARTMENT SPECIAL TAXES INITIATIVESClarifying a certain provision providing for enforcement of the +hazardous waste generator tax, penalties to be the same as the penalties applicable +to the corporate franchise tax; excluding certain community health services +and support programs from the definition of patient services under the MinnesotaCare providers gross earnings tax; removing the reference to+ locally licensed tobacco sellers from the definition of unlicensed seller and clarifying the definition of wholesale price for cigarette and +tobacco taxes imposition purposes; modifying the general tobacco products use tax +exemption; clarifying the application of the penalties for failure to file or +pay the cigarette and tobacco products tax and for false or fraudulent +returns and modifying the application of the penalty for unstamped cigarettes; +prohibiting the purchase of cigarettes or tobacco products from unlicensed +sellers and modifying the application of the penalty for unlicensed purchases; +expanding the definition of gross premiums to the workers compensation +surcharge for insurance gross premium tax purposes and providing a gross premium +tax offset for joint underwriting association assessments; specifying certain +reference deletion instructions to the revisor of statutes; repealing certain +general gross earnings tax provisions and certain rules providing for the identification of service station pumps and containers for fuel tax +purposes, the ethanol development fund and the road tax ARTICLE 8 � DEPARTMENT COLLECTIONS AND COMPLIANCE INITIATIVESPrescribing penalties for filing certain documents including +nonconsensual common law liens against the commissioner of revenue or department +employees; providing for the attachment of all tax liens to proceeds from the +sale, lease, licensing, exchange or other disposition of property, defining +proceeds of property; designating the Internet as a public place for posting +information on the sale of certain seized property and requiring and providing for +notice by the commissioner of the sale of seized securities; expanding the +definitions of license and licensing authority for tax clearance certificate +requirements purposes and the definition of claimant agency to the Minnesota +collection enterprise under the revenue recapture act; clarifying certain +provisions regulating tax payment liability, imposing personal debt liability +for the overpayment of property tax refunds; granting the commissioner access+ to records for examination of out of state businesses for tax payment +liability purposes and imposing a penalty and specifying the venue for +punishment of subpoena disobedience; expanding the authority of the commissioner to+ cancel sales tax permits to permits subject to cancellation after +revocation; repealing the expiration date for the requirement for the +commissioner to publish the names of delinquent taxpayersARTICLE 9 � CENTRAL LAKES REGION SANITARY DISTRICTEstablishing the central lakes region sanitary sewer district in +parts of the Douglas county towns of Carlos, Brandon, La Grand, Leaf Valley, +Miltona and Moe to be under the control and management of the central lakes sanitary +sewer board, specifying board membership requirements and providing for +organization and operation, authorizing and providing for appointment of a general+ manager; requiring and providing for the board to adopt a comprehensive plan +for the collection, treatment and disposal of sewage, specifying certain plan+ and public hearing requirements; specifying certain local comprehensive +plan and sewage management program adoption requirements, requiring review and+ approval by and coordination with the board; requiring the board to assume +ownership of existing interceptors and treatment works and providing for the +assumption of existing debt; terminating the existing joint powers board and +authorizing and providing for the board to terminate certain existing contracts +between local government units; granting the board certain sewage collection and +disposal powers and specifying certain budget preparation and adoption +requirements; providing for the allocation of current costs to local government +units in the district and for local payments to the board; specifying certain +local levy authority; requiring and providing for public hearings on specific +projects and granting local units certain special assessment authority; providing +for the payment of certain initial costs; granting the board certain +obligations or certificates issuance and tax levy authority; requiring and providing+ for board designation of depositories; providing for certain funds and accounts+ and for the deposit or investment of money; specifying certain general powers+ of the board; requiring local government units to retain responsibility for +the planning, design, acquisition, betterment, operation, administration +and maintenance of local sanitary sewer facilities, providing for +assumption of responsibility by the board under certain conditions; authorizing and+ providing for certain service and construction contracts; providing for +expansion of the district; exempting board property from taxation; providing for the +relation to existing lawsARTICLE 10 � TAX INCREMENT FINANCING Clarifying and modifying certain tax increment financing provisions; +clarifying the definitions of bonds relating to interfund loans, the definition +of municipality relating to county jurisdiction and increment financing +relating to principal and interest received on loans, correcting the +definition of redevelopment district relating to the determination of substandard +buildings and defining qualified housing district; clarifying the requirement +for TIF plans to include estimates of the cost of the project, requiring +separate statement of the amount of administrative expenses paid with +increments and with nonincrement revenues; providing for the computation of present +values of projected tax increments for city or county determination of the +increased market value of the site under municipal plan approval procedures, +specifying certain statement of reasons and supporting facts content +requirements of the city or county and defining site; modifying certain requirements for modification of TIF plans and providing for application of the +provision; eliminating the requirement to include the amount budgeted under TIF +plans in authority annual financial reports and requiring inclusion of +estimates contained in plans of project costs to be paid or financed with tax +increment; modifying certain exceptions to the duration limit for pre-1979 TIF +districts, specifying certain priorities for application of increments from the +districts, requiring project or district decertification upon payment in full or defeasement of obligations; requiring and providing for authority +annual determination of district excess increments; clarifying the limit on administrative expenses; defining revenues derived from tax +increments paid by properties in the district for pooling restrictions purposes; +expanding the five year rule to expenditures for housing purposes; eliminating the requirement for the commissioner of revenue to approve the use of +increments outside the district for deficits elimination purposes; clarifying +certain tax increment computation provisions and the authority of the court to +abate damage amounts for certain violations; imposing a statute of limitations on +legal actions contesting the validity of determinations under TIF plan +adoption or modification; authorizing resolutions authorizing interfund loans to +generally grant authorities the power to make the loans under one or more TIF +plans or for one or more districts and authorizing fluctuating maximum +interest rates; clarifying the scope of the provision providing for special deficit +authority of authorities with preexisting districts, modifying the definition +of preexisting obligation and clarifying the fiscal disparities option +for economic development districts, authorizing modification to offset a +deficit; exempting uncollected abatement levies from a prior year added to the+ abatement levy from the levy limit on abatements and authorizing local +government units to add certain previously uncollected property tax abatement levies +to abatement levies for the current year; modifying the effective dates +for a certain prior definition of tax increment and for a certain provision+ allowing transfers of increments to pay deficits in certain guaranteed bonds; permanently extending the authority of the city of Moorhead to impose+ a special levy on certain property to pay preexisting obligations issued to +alleviate a deficit in a certain TIF district and limiting the use of increments +to paying preexisting obligations and administrative expenses; authorizing the +city of Hopkins to extend the duration of a certain redevelopment TIF +district, providing a five year rule exemption for the districtARTICLE 11 � MINERALS TAXESModifying certain provisions governing the taconite tax and the +distribution of revenues from the tax; redefining municipality, eliminating the +definition of tax relief area and defining taconite assistance area for property+ tax and taconite supplemental aid eligibility purposes; authorizing the +commissioner of iron range resources and rehabilitation to apply for and spend +federal grant and loan money; making permanent the requirement to pay the taconite +production tax in installments; eliminating the inflation adjustment for school +district distributions; restricting certain interest limits on loans from the +northeast Minnesota economic protection trust fund to loans to private +enterprises and expanding the temporary loan authority of the IRRRB; providing for redistribution of money remaining in the taconite environmental fund+ upon sale of taconite production facilities after cessation of operations; +instructing the revisor of statutes to change the northeast Minnesota economic +protection trust fund to the Douglas J. Johnson economic protection trust fund +in the statutes; repealing an obsolete credit against the taconite +production tax for paid school district bonds ARTICLE 12 � PUBLIC FINANCEAuthorizing and providing for the state agricultural society to +temporarily issue revenue bonds for activities funding purposes, limit, +authorizing issuance to refund outstanding bonds, requiring approval of the +commissioner of finance; expanding the authority of county boards and home rule +charter cities to issue capital notes for the purchase of capital equipment to +computer hardware and software, sunsetting the authority to issue notes for +software; expanding the definition of county debt obligation for building debt recognition purposes to bonds payable from lease obligations and the +authority to issue capital improvement bonds or notes to finance the cost of +designing, constructing and acquiring statewide public safety radio +communication system infrastructure and equipment to all counties; authorizing counties +not establishing county hospitals or nursing homes to by resolution +authorize cities to establish the hospitals or nursing homes and to use certain+ surplus funds to acquire nursing homes; establishing and providing for a city+ capital improvement bond program; authorizing Koochiching county to establish+ a port authority and local government units in the county to apply to the +federal government for foreign trade zone powers for use within or outside +port districts; increasing the limit on property tax abatements; +authorizing the metropolitan council to issue certificates of indebtedness, bonds or +other obligations for metropolitan area transit capital expenditures under +the regional transit master plan and transit capital improvement program,+ limit; expanding the use of revenue bonds issued by the metropolitan council+ for public safety radio systems to include making improvements to +existing 800 MHz radio systems capable of interoperating with the system; restricting entitlement issuers from applying for bond allocations from the +housing pool, requiring issuance or return of carryover allocations from prior +years; authorizing the issuance of street reconstruction bonds for utility +replacement and relocation and other activities incidental to the reconstruction,+ excluding widening the street or adding curbs and gutters; increasing the +dollar amount allowed to be spent by Beltrami county for promotion of tourist, +agricultural and industrial developments; validating bonds issued by Anoka county +for public safety radio improvements without meeting certain prior review and +approval requirements; authorizing and providing for the city of Buffalo to +issue general obligation bonds to pay for the city share of costs of +reconstructing and upgrading trunk highway #55, excluding the bond levy from local +government aid (LGA) calculation; clarifying the corporate status of the Lewis +and Clark Rural Water System, Inc. relating to the issuance of obligations for +federal income tax law purposes; authorizing Itasca county to issue bonds to +finance the construction of a nursing home facility to replace an existing +private facility in the county; validating the approval of a resolution +adopted by the board of directors of local government information systems (LOGIS) +and providing for the application of obligations issued after a certain +date; authorizing Kandiyohi county to exercise the powers of a city to +establish an economic development authority (EDA) without voter approval and to +enter into a joint powers agreement with the city of Willmar to exercise powers +common to both the county and the city, designating the joint powers entity as +a special taxing district for property tax levy authority purposes; authorizing+ and providing for the city of Minneapolis to establish by ordinance a +community planning and economic development (CPED) department; establishing the+ lakes area economic development authority to be governed by a board of +commissioners and granting the EDA certain powers ARTICLE 13 � MOSQUITO CONTROL DISTRICT Modifying certain provisions regulating the metropolitan mosquito +control district; extending the authority of the district to spray +pesticides, specifying certain conditions; expanding the area of the district and increasing the membership of the commission, providing for inclusion +of all of Carver county; expanding the authority of the commission to enter +private property; modifying certain contract requirements and subjecting +contracts to the uniform municipal contracting law; prohibiting the payment of per+ diems to commissioners and making expense reimbursements optional; providing +for services to the additional part of Carver county until the +availability of levy proceeds; repealing an obsolete homestead and agricultural credit aid+ (HACA) adjustment for the district ARTICLE 14 � MISCELLANEOUSModifying the authority of the attorney general to compromise tax +debts and granting the commissioner of revenue certain compromise authority +based on the amount of reduction; authorizing the commissioner to accept payments +of court fines designated for tax law enforcement; extending the carryover of +the franchise tax credit for job creation by corporations leasing and +operating heavy maintenance bases for aircraft owned by the state or local +government units or engine repair facilities (Northwest airlines), requiring the commissioner to refund unused portions to the taxpayer at the end of +the carryover period, bankruptcy filing exception; eliminating the +cigarette stamp discount for distributors and excise tax payers; requiring payment of+ the cigarette tax required in other states for cigarette transport and +sale purposes; imposing a fee on cigarette manufacturers not entering a +settlement agreement with the state to be collected by the commissioner to +further the policy of discouraging smoking by minors; clarifying the exemption of+ county solid waste management services from the solid waste management tax; +defining borrow for aggregate material (gravel) tax purposes; advancing the +effective date of border city development zone designations; eliminating +certain obsolete appropriation language relating to department of revenue compliance +programs; requiring and providing for the commissioner to establish an advance +collection program to collect otherwise uncollectible tax, interest and penalty obligations; authorizing the Duluth economic development authority to+ create an economic development tax increment financing (TIF) district for +aircraft related facilities subject to certain rules and limits; repealing a +certain provision granting an aggregate material tax exception for Benton and+ Stearns counties(je, ja)