Relating to the financing and operation of state and local government ARTICLE 1 � JOB OPPORTUNITY BUILDING ZONESProviding for the designation of job opportunity building zones by +the commissioner of trade and economic development; exempting real +property improvements and tangible personal property of qualified businesses +located in the zones from ad valorem property taxes, exceptions; exempting +electricity produced by wind energy conversion systems located in job opportunity+ building zones from the wind energy production tax for the duration of the +zone; providing certain income, corporate franchise, sales and use and +motor vehicle sales tax incentives for operating or investing in businesses located+ in job opportunity building zones; defining certain terms relating to +establishment of the zones; requiring applicants for designation to adopt a written +development plan for the zone before submitting an application to the +commissioner, specifying certain minimum development plan content requirements; +placing certain limits on the zones, specifying a maximum size and duration, authorizing subzones, requiring location outside the metropolitan +area, prohibiting the inclusion of border city development zones in the job opportunity +building zone area, authorizing inclusion of agricultural processing facility +zones; specifying application content requirements; requiring the +commissioner in consultation with the commissioner of revenue to designate a limited +number of job opportunity building zones, authorizing additional designations +in consultation with the commissioners of agriculture and revenue of a +certain number of agricultural processing facility zones, specifying certain +need indicator consideration requirements and providing for the +determination of success of a proposed zone in designating the zones; prescribing a +designation schedule and requiring geographic distribution; requiring and +providing for repayment of tax benefits under certain conditions, authorizing +waiver by the commissioner of revenue; requiring annual reports on progress in +meeting zone performance goals to the DTED commissioner by zone designation +recipients and granting the commissioner certain remedy authority for zones failing +to meet the goals; providing for job opportunity building zone aid to cities +and counties for the property tax exemption, specifying certain duties of+ county assessors and the commissioner of revenue; appropriating money to the commissioners of trade and economic development and revenue for +certain designation and administration costs ARTICLE 2 � BIOTECHNOLOGY AND HEALTH SCIENCE ZONESAuthorizing and providing for the designation of biotechnology and +health sciences industry tax free zones by the commissioner of trade and +economic development; defining certain terms; specifying certain applicant +development plan adoption and content requirements; limiting the size and +duration of the zones and authorizing subzones; specifying certain designation +application content requirements, authorizing application by local government +units or joint powers boards; providing for commissioner designation of the +zones in consultation with the commissioner of revenue and the director of the+ office of strategic and long range planning, specifying certain need and +success indicators for consideration by the commissioner for designation +purposes and providing a designation schedule; providing individual income and +corporate franchise tax exemptions for qualified businesses and investments in +qualified businesses operating in the zones, requiring and providing for +repayment under certain termination conditions, authorizing waiver by the +commissioner of revenue; specifying certain reporting requirements of applicants +receiving designation on progress in meeting the zone performance goals under +the development plan, authorizing certain DTED commissioner actions for +failure to meet the goals; exempting improvements to real or personal property +in the zones from the property tax and providing sales and motor vehicle +sales tax exemptions for certain purchases ARTICLE 3 � 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 provisions ARTICLE 4 � PROPERTY TAXESExempting baseball parks owned and operated by private nonprofit +corporations and used primarily for amateur baseball and elderly living facilities+ under certain conditions from the property tax; eliminating the requirement+ for valuation of certain rental properties using normal restrictive rents+ to allow the property owners subject to rent restrictions to seek reduced +values based on the effects of the restrictions on market value; eliminating the +education reserve account in the general fund; requiring the commissioner of +revenue to increase or decrease the preliminary or final state general tax rate +to account for errors and tax base changes affecting the rate in certain prior +years, limiting adjustments; modifying certain proposed property tax (truth +in taxation) notice requirements, eliminating the requirement to include+ tax changes due to spending and certain other factors and modifying the +requirement to include levy limit increases approved by voters; setting the +metropolitan council highway right-of-way, general purposes and livable +communities levies and providing for inflation adjustments; eliminating the authority of+ the commissioner of public safety to certify the statewide public safety +radio levy to include certain unpaid local cost reimbursements; establishing the southern St. Louis county special taxing district +for operation, maintenance and improvement of the Chris Jensen nursing +home; repealing a certain obsolete low income housing property tax +exemption ARTICLE 5 � CITY AIDSExpanding the responsibilities of the state demographer to the +preparation of annual estimates of the average household size for certain cities; +modifying the city revenue need and city aid base and distribution formulas for+ local government aid purposes and increasing the aid base for cities with +nuclear dry cask storage facilities (Red Wing) and for certain cities in a +certain federally declared disaster area (Comfrey); defining household size +and road accidents and metropolitan area factors; expanding city formula aid +to include taconite aids; limiting future city aid increases and reductions; +appropriating money for city LGA payable in 2004 and 2005 and later years and +repealing the automatic inflation factor; defining certain terms for city aid +reduction purposes and providing aid reductions for cities for 2003 and 2004; +repealing the LGA base reduction percentage, certain obsolete aid reductions, +certain LGA inflation adjustments and additional appropriations and low income +housing and rental housing tax base replacement aids ARTICLE 6 � OTHER INTERGOVERNMENTAL AIDS Modifying the homestead and agricultural credit aid offset to +counties for certain court costs, providing for temporary transitional aid and +converting HACA to county program aid beginning in 2004, county program aid to +consist of county need, tax base equalization and transition aids, excluding the+ HACA set aside for future court takeovers from the aid; limiting the total +aids paid, requiring retention of certain amounts by the commissioner of revenue+ for certain reimbursements for public defender programs and to fund the +preparation of certain fiscal impact notes prepared by the commissioners of +finance and children, families and learning (CFL); providing for 2003 and 2004 +county, township, special taxing district aid reductions; providing a HACA +adjustment to counties for a certain error in the state assumption of court +costs; repealing county and school attached machinery aid, county HACA and +criminal justice, family preservation and out of home placement aids, certain +inflation adjustments, certain obsolete aid reductions and rental housing tax +base replacement aid ARTICLE 7 � LEVY LIMITSEliminating the obsolete special levy authority of local government +units for redistricting costs and adjusting the special levy for state +assumption of court costs; authorizing counties to use the county jail special levy+ for the costs of new facilities; modifying the levy and adjusted levy limit +bases and the property tax levy limit, removing a certain charter exception and+ reducing the limit by the amount of wind production tax payment received in +lieu of property taxes; extending the provision providing for levy limit +adjustments upon annexation; authorizing referenda held to exceed levy limits to +be effective in the current year under certain conditions; requiring +small cities subject to levy limits to provide the commissioner of revenue with +certain information required to calculate the levy limit base ARTICLE 8 � SALES AND USE TAX Authorizing limited used vehicle dealers to sell vehicles to other +motor vehicle dealers and specifying a time limit for nonprofit charitable organizations accepting donations of the vehicles to provide receipts+ to the donors; eliminating the scheduled repeal of the retailers accelerated+ June sales taxes payment requirement and increasing the accelerated +payment amount; eliminating the authority of the state agricultural society to retain+ the sales tax proceeds from state fair ticket sales, requiring remittal to the +state; modifying the penalty for underpayment of June accelerated sales tax +payments; extending the sales tax exemption for regionwide public safety radio communication system purchases; clarifying the exemption for +nonprofit organizations ticket sales; modifying the exemption for camp fees and eliminating the restriction of the exemption to minors; providing an +exemption for materials, equipment and supplies used in construction of the +Walker art center; expanding the exemption from the motor vehicle sales tax for +gifts of vehicles between individuals to limited used motor vehicle dealers; +expanding the authorized use by the city of Duluth of proceeds from the local +sales tax on restaurants, hotels and motels to the payment of debt service on +bonds issued for capital improvements to the Duluth entertainment and +convention center (DECC) and to the great lakes aquarium; changing the option +for use by the city of St. Paul local sales tax revenues for capital and +operating costs of city cultural organizations to a requirement; extending the sales +tax exemption for materials, supplies and equipment used in the +construction of certain biomass electric generating facilities; advancing the +termination date for the sales tax exemption for construction materials for certain hydroelectric generating facilities; reinstating and expanding the +sales tax exemption for materials, supplies and equipment used in constructing +or equipping improvements to the state convention center in Duluth, +specifying a certain nonstate resources funding requirement; authorizing and +providing for Itasca county to impose a local lodging tax in towns and organized +territories within the county; requiring the commissioner of revenue to study +local sales taxes and report to the legislature by a certain date; repealing the +used motor oil and filters collection refund program ARTICLE 9 � SPECIAL TAXES Requiring and providing for commissioner of revenue payments to +counties with Indian gaming casinos and without tribal tax agreements a certain +percentage of excise taxes determined to be generated from activities on the +reservation; modifying the requirement for remittance by counties to the state of +June accelerated mortgage registry and deed tax collections and imposing a+ penalty for noncompliance; accelerating the payment of distributor June +accelerated cigarette and tobacco products and liquor tax collections, +eliminating the tobacco products distributor discount and imposing a penalty for +underpayment by certain larger distributors; eliminating the requirement for a +portion of the cigarette tax revenue to be credited to the Minnesota future +resources fund, creating the academic health center special revenue fund and +the medical education and research costs account in the special revenue fund to +fund health professional programs and interdisciplinary academic initiatives at +the university of Minnesota academic health center, providing for +transfer of the funds to the center by the commissioner of health; reducing the +liquor tax on premixed low alcohol dairy cocktails, defining low alcohol dairy +cocktail; requiring organizations recognized by federal law as quasi-government organizations otherwise exempt from lawful gambling taxes to agree to+ pay the taxes on gambling conducted by the organizations as a condition of +receiving or renewing licenses or premises permits ARTICLE 10 � LOCAL ECONOMIC DEVELOPMENTProviding for additional border city enterprise zone allocations by +the commissioner of trade and economic development (DTED) to western +border cities, authorizing use for certain tax reductions; clarifying the definition+ of municipality and expanding the definition of redevelopment district +to qualifying disaster areas for tax increment financing purposes, +defining qualified disaster area; clarifying pooling restrictions for housing expenditures outside the district and the required use of increment +revenues for decertification; requiring county auditors to certify the value +of the land qualifying as disaster areas as the original tax capacity for +parcels in the district containing buildings suffering substantial damage +resulting from the disaster for tax increment computation purposes; authorizing +development authorities to extend the duration of TIF districts to eliminate +deficits caused by certain property tax changes under certain conditions, +imposing a maximum duration extension; authorizing entitlement issuers to apply +for bonding allocations from the housing pool upon return for +reallocation of unused bonding authority carryforwards; authorizing and providing for+ the city of New Hope to create redevelopment or soils condition TIF districts+ subject to certain rules and limitsARTICLE 11 � MISCELLANEOUS Expanding the definition of political subdivision to school district +for state mandated actions local impact notes request authority purposes; +eliminating the requirement for the commissioner of finance to transfer unencumbered +balances in the general fund to the cash flow account, requiring the +commissioner to transfer certain amounts from the general fund to the budget reserve +account; establishing priorities for unrestricted general fund balances at the+ close of the biennium; clarifying the requirement for web site notice of +pesticide applications; regulating certain income tax preparation services +offering or providing refund anticipation loans (RALs); authorizing counties to +submit revenue recapture claims on behalf of licensed ambulance services and+ to charge a fee to offset the cost of administering the services; correcting +the definition of taconite assistance area and certain references to the +taconite tax relief area for tax relief clarification purposes; exempting +income tax returns required by the commissioner of revenue to be filed in paper +form from certain paper form filing fee requirements; reducing the percentage +required to deduct charitable contributions from alternative minimum taxable +(AMT) income; authorizing local special assessments for reinspections conducted +after the due date for compliance with orders to correct municipal housing +maintenance code violations; requiring the metropolitan mosquito control commission to+ contact objecting property owners before entering the property to determine +the need for control programs; extending the date for completion of the BAT +(business tax) study by the legislative coordinating commission (LCC); +eliminating the requirement for the commissioner of finance to transfer a certain +amount to the budget reserve account for increase purposes, requiring the +commissioner to transfer the tobacco use and prevention and local public health and +the medical education endowment funds to the general fund and providing for a +budget reserve adjustment under certain conditions; requiring the crediting +of temporary state fiscal relief received under the federal jobs growth +and tax relief reconciliation act of 2003 to the general fund; appropriating +money to the commissioner of revenue for grants to nonprofit organizations +providing taxpayer assistance services and for administration of tax law +changes (Ch. 21, Special Session 2003)