Relating to financing and operation of state and local governmentARTICLE 1 � INCOME, FRANCHISE AND OCCUPATION TAXESEliminating the income tax filing requirement for military personnel +under certain conditions; excluding nonprofit charitable organizations and individuals hired by the organizations to prepare tax returns from +the definition of tax refund or return preparer; eliminating military +personnel in active service outside the state from the definition of nonresident; +providing an income tax subtraction for certain military income and for certain+ bonus depreciation and organ donation expenses; requiring corporations to +add to federal taxable income for franchise tax purposes the excess of +deductions over income from certain property transactions; authorizing a carryover +subtraction for certain previously disallowed deductions; modifying the income +tax education credit; limiting corporate tax benefits for tax exempt +property; phasing out the adjusted gross income threshold for subtraction of +charitable contributions under the alternative minimum tax and increasing the +AMT exemption amount; granting the commissioner of revenue explicit power+ to disqualify foreign operating corporations under certain conditions; +modifying the net income apportionment formulas for corporations and financial institutions, phasing in single sales apportionment; excluding tax +exempt property and certain related transactions from the corporate +franchise tax sales, receipts and property factors; exempting publicly traded +partnerships from the requirement to withhold income tax on shares distributed to nonresident partners under certain conditions; specifying the net +income apportionment formulas for occupation tax purposes; authorizing +refunds for taxes paid on certain individual retirement account (IRA) and pension distributions ARTICLE 2 � FEDERAL UPDATEUpdating certain state income and franchise tax and property tax +refund provisions to changes in the internal revenue code (IRC) and the +definition of internal revenue code under tax administration and compliance +provisions ARTICLE 3 � PROPERTY TAXESProviding for payment in lieu of taxes to counties with land owned by+ a state agency for military purposes and managed by the commissioner of +natural resources as a game refuge; delaying the emergency medical services +(EMS) special taxing district report requirements; providing for property +tax valuation and classification of wind energy conversion system land; +extending the deadline for the commencement of construction of poultry litter +biomass electric generation facilities for personal property tax exemption +purposes and expanding the exemption to a certain other similar facility; +extending the personal property tax exemption for certain combined cycle combustion+ turbine electric generation facilities; exempting homesteads of service +connected permanently and totally disabled veterans or veterans receiving +benefits from the federal veterans administration from the property tax, providing +a carryover to spouses of veterans upon the death of the veteran; +authorizing certain duration restrictions on border city development zone +property tax exemptions; providing a property tax exemption for certain new +electric generating plants; accelerating the due date for annual wind energy +production system production reports and for notice by the commissioner of +revenue to system owners of the tax due and requiring the distribution of tax +revenues to be based on the tax rate of the previous rather than the current +year; subjecting certain resort property to limited market value +assessments and limiting the valuation increase for assessment year 2004; increasing +the production income requirement for agricultural property to qualify +for green acres treatment; regulating the homestead valuation of residential +property used to provide day care; authorizing and providing for cities to +establish programs to encourage redevelopment and better use of vacant +commercial industrial property and eliminate blighting influences by revoking +the eligibility of the properties to receive the disparity reduction +credit; modifying the residential homestead market value credit for certain +mixed property; requiring cities or towns conducting local boards of appeal+ and equalization meetings to annually notify the county assessor of +compliance with training requirements; authorizing separate statement of library +levies on Ramsey county proposed property tax (truth in taxation) notices and +property tax statements; modifying the definition of property taxes payable +for property tax refund purposes; authorizing the commissioner to pay property tax+ refund claims early for electronic filers; clarifying town spending and levy authority, prohibiting towns from spending or levying more than total+ revenue without voter approval, defining total revenue; separately defining +federal land utilization project land for counties payment in lieu of taxes +on natural resources land purposes and providing for payments to counties by the commissioner of the DNR on the project lands; modifying certain +provisions authorizing the deferment of special assessments against the Caponi +art park property in the city of Eagan; authorizing towns in Lincoln and +Pipestone counties to adjust the payable 2004 levy for all or a portion of +estimated wind energy production tax amounts computed by the commissioner and the +Lincoln and Pipestone county auditors to adjust the payable 2004 levy +certifications based on the towns recertifying levies by a certain date; authorizing an +increase in the property tax levy by the Sauk River watershed district for the administrative fund; authorizing and providing for common school +district #815, Prinsburg to continue to operate as a common school district under +certain resolution adoption, statutory operating debt avoidance and levy +referendum conditions; requiring the commissioner to study and report to the +legislature by a certain date the percentage of rent constituting property taxes ARTICLE 4 � SALES AND USE AND LODGING TAXESProhibiting commissioner of administration, state agency or +legislative goods or services procurement contracts with foreign vendors failing to +register to collect sales and use taxes on sales in the state, exemptions, +requiring vendor submission of certification of registration to the agency or +legislature; excluding leases of motor vehicles exceeding a certain gross weight +and certain short term leases from the provision treating lease payments as +separate retail sales, imposing the sales tax on the total amount of the lease and +providing for collection of the tax on leased motor vehicles brought into the +state in midlease; exempting cigarettes from the retail sales tax; providing +certain exclusions from the definition of industrial production for capital +equipment sales tax imposition purposes; exempting personal rapid transit +system machinery, equipment and supplies, meals donated to nonprofit groups +for fundraising purposes and certain flea market sales from the sales +tax; expanding and making permanent the sales and use tax exemption for +public safety radio communication system products and services; modifying +certain requirements for the use of revenues from the local sales and use tax+ imposed by the city of Rochester; eliminating the expiration date on the +exclusion of certain ready to eat meat and seafood from the definition of prepared+ food for sales tax purposes ARTICLE 5 � SPECIAL TAXESRequiring third party purchasers to comply with provisions +authorizing the transfer of the MinnesotaCare gross earnings (health care provider) +tax regardless of the choice to or not to itemize the tax on patient +billings; requiring out of state cigarette retailers to register with the +department of revenue, reporting requirements; imposing a wholesale tax on +cigarettes; defining direct business for insurance gross premium tax purposes and+ reducing the tax rate on certain smaller property and casualty and life +insurance companies; excluding certain persons from the definition of operator +for aggregate material removal tax purposes; regulating certain delivery +sales of tobacco products and imposing a floor stocks tax on cigarettes ARTICLE 6 � TAX INCREMENT FINANCINGModifying certain tax increment financing provisions; eliminating the requirement for decertification of TIF districts or hazardous +substance subdistricts established to pay for the local match requirement for contamination cleanup grant eligibility purposes and a certain +exclusion from the definition of housing district relating to fair market value of improvements constructed for other than low and moderate income +housing; expanding the definition of tax increment to repayment or return of +tax increments under certain agreements and to the market value homestead+ credit; transferring the requirement for filing of copies of development or +project plans with the state auditor from the commissioner of revenue to the development authority; modifying certain housing +district qualification requirements; eliminating a certain income test for +rental properties; modifying certain conditions under the requirement to add+ net tax capacity increases to the original net tax capacity for tax increment computation purposes; extending the duration of and modifying certain requirements for the establishment of TIFdistricts in the city of New+ Brighton; extending the duration of a certain TIF district in the city of +Brooklyn Center; authorizing the city of Robbinsdale to treat a certain school+ building as structurally substandard for blight test purposes; authorizing the+ city of Wabasha to extend the duration of a certain redevelopment tax +increment financing (TIF) district and to use the proceeds of tax increment +bonds issued before a certain date to pay the costs of acquiring and constructing +a national eagle center; repealing the three year activity rule and certain +developer payment use restrictions ARTICLE 7 � INTERNATIONAL ECONOMIC DEVELOPMENT ZONESProviding for designation of foreign trade zones as international +economic development zones by federal foreign trade zone authorities under +certain conditions, specifying certain consideration requirements for +designation and certain powers of the authorities, requiring and providing for +preparation of a development plan for the regional distribution center; providing +certain property, income, franchise and sales and use tax exemptions for +businesses located and individuals operating a trade or business in the zones; +creating a jobs credit for qualified businesses and appropriating money to the commissioner of revenue for the credit; requiring and providing for +repayment of certain tax incentives upon ceasing operation in the zones; +requiring the foreign trade zone authority to establish performance goals and +report to the commissioner of employment and economic development (DEED) on +progress in attaining goals ARTICLE 8 � DEPARTMENT OF REVENUE POLICY PROVISIONSAuthorizing case reviewers under the state debt collection procedure +to issue debtor assistance orders under certain unjust or inequitable results determination conditions and transferring duties and authority of +case reviewers to the taxpayer rights advocate; delegations of authority +granted by the commissioner of revenue to remain in effect until revoked by the commissioner or a successor; authorizing the commissioner to +negotiate with streamlined sales tax agreement member states on the amount of +monetary allowance for sellers and certified providers purchasing certified +software for sales tax collection; providing for notices of determinations or +actions by the commissioner not provided for by law; providing for transcriptions of+ tax lien notices from counties to the secretary of state; including +certification of 1b property (homesteads of certain blind or disabled persons) in the +definition of Minnesota tax laws for tax data classification and disclosure +restrictions purposes, authorizing the commissioner to disclose the names and +addresses of qualified applicants for class 1b homesteads to county assessors; +expanding the property tax exemption for biotechnology and health sciences industry+ zone property; requiring partnerships with more than a certain number of +partners to file returns electronically; specifying a time limit for request for calculation of separate income tax liability after filing a joint +return, exempting the commissioner from the requirement to calculate separate+ liability under certain conditions; providing for the calculation of interest +on biotechnology and border city zone sales tax overpayment refunds; +expanding the limit on the corporate franchise tax subtraction for qualified +research expenses to expenses in excess of the biotechnology and health +sciences industry zone credit; modifying the withholding requirement for +payments to out of state contractors; authorizing the commissioner to allow early +withdrawal from the sustainable forest incentive act without penalty upon land +acquisition by the state, local government units or other entities with the right+ of eminent domain, requiring execution and acknowledgment of a document +releasing the land from the covenant; delaying the accrual of interest on +refunds for sales tax exemptions for businesses located outside border city +development zones; clarifying the definition of qualified business for job +opportunity building (JOBZ) and biotechnology and health sciences industry zones +purposes and exempting qualified businesses in biotechnology zones from the +corporate minimum fee; clarifying the exclusion of major or intermediate +airports from the definition of geographic area under the metropolitan area fiscal disparities program; repealing certain alternative levy authority of +the Alexandria lake area and central lakes region sanitary sewer +districts ARTICLE 9 � MISCELLANEOUS Requiring and providing for use of positive unrestricted budgetary +general fund balances to increase the school district aids and credits payment +schedule and to eliminate the property tax revenue recognition shift, specifying +certain duties of the commissioners of finance and education; modifying +certain motor vehicle certificate of title provisions and records maintenance +requirements for motor vehicles held by dealers for resale; imposing a franchise +fee payment requirement on parimutuel licensees for card club operation purposes;+ modifying certain provisions regulating tax preparers; modifying the definition+ of taxable estate for estate tax purposes, disallowing certain state +death taxes in computing the tax; authorizing and providing for qualified +terminable interest property elections; clarifying the imposition of the +taconite production tax on direct reduced ore; increasing the limit on tax +incentives for biotechnology and health sciences industry zones; modifying the +membership of the electronic real estate documents filing and recording task +force and specifying the term, designating the secretary of state as the chair, authorizing subcommittees, requiring the task force to provide an +updated report to the legislature by a certain date containing a revised work+ plan and budget and extending the duration of the task force and the filing +fee surcharge to fund the task force; increasing the in lieu sales tax on+ racino gaming machine revenues and reducing the percentage of revenues +retained as compensation to the racetrack in certain recent legislation passed by+ the house; requiring the commissioner of finance to transfer a certain +amount of money from the general fund budget reserve account to the cash flow +reserve account; requiring a certain amount of funds for general education +aid to be from the general revenue sharing with states and local governments +provided to the state in the 2003 jobs and growth tax relief reconciliation act; appropriating money to the commissioner of revenue for the tax +compliance initiative, for a property tax refund study and for an income and +home value dataset linking homeowner incomes and the estimated market values of +homesARTICLE 10 � PROPERTY TAXES TECHNICALRequiring the state demographer to certify estimates of population +and households to the commissioner of revenue by a certain date, +modifying the date for estimates of household size in certain larger cities and the +date for municipalities to challenge population estimates; clarifying the +requirement for the payment of personal property taxes on manufactured homes for +title transfer purposes; expanding the authority of the commissioner to +disclose certain information for property tax residential homestead +classification purposes; clarifying the property tax exemptions for property used +under cooperative farming agreements, for certain housing and redevelopment+ authority (HRA) property, for property subject to taconite production or net +proceeds taxes and for property of religious corporations and children's +homes; clarifying the exclusion of government rent assistance and contract +payments from donations or gifts for public charity institutions property tax +exemption purposes; clarifying the provision requiring limited liability +companies to operate family farms to receive an agricultural homestead +classification; eliminating certain obsolete language relating to meetings of county +boards of equalization; modifying the date for county auditors to certify levy+ and tax rate information to other county auditors relating to taxing +jurisdictions crossing county boundaries for proposed property tax (truth in +taxation) notice purposes; eliminating the requirement for reduction of levies by +disparity reduction aid; granting the commissioner the option of excluding +detailed special levy information from levy information required to be +annually reported by county auditors; modifying the date for county treasurers to +transmit the state share of property tax receipts to the department; clarifying +certain tax-forfeited land provisions relating to prohibited purchasers and +duties of the commissioners of finance, natural resources (DNR) and revenue; +modifying the date and certain requirements for metropolitan council +population estimates; modifying the definition of city aid base; clarifying +certain appropriations for local impact note and public defender costs; +clarifying the impact of city 2004 initial aid reduction amounts on local government+ aid (LGA); excluding attached machinery aid from the levy plus aid +revenue base for county aid reductions computation purposes; repealing certain + provisions relating to a limited property tax exemption for certain +hydroelectric facilities on government owned sites and certain obsolete provisions + ARTICLE 11 � SALES AND USE TAXES TECHNICALClarifying the period for assessing additional taxes for sales tax +returns omitting use certain use taxes and the use of the bad debt exclusion; clarifying and modifying certain sourcing provisions enacted as part +of the streamlined sales tax project; clarifying certain exclusions from the definitions of industrial production and capital equipment and a +certain provision regulating the sale of property or services under +preexisting construction bids or contracts for sales tax exemption purposes; +repealing certain obsolete or duplicative sales and use tax rulesARTICLE 12 � SPECIAL TAXES TECHNICALExempting mortgages on armories from the mortgage registry tax; +excluding housing with services establishments from the definition of health +care provider for MinnesotaCare gross earnings tax imposition purposes; +granting the commissioner of revenue certain petroleum tax penalty abatement +authority; providing for imposition of the gambling tax on linked bingo games; +clarifying the reporting requirement for cigarette manufacturers involved in +interstate commerce and the due dates of returns for cigarette and tobacco +products distributors subject to accelerated tax liability; defining +reinsurance insurance gross premium tax administration purposes and clarifying +the taxation of certain medium sized mutual companies and of health maintenance organizations (HMO), nonprofit health service plan corporations and +community integrated service networks (CISN); repealing a certain duplicative +lawful gambling tax payments crediting requirement ARTICLE 13 � MISCELLANEOUS TECHNICALSpecifying the date of property assessment in taxpayer signed consent+ agreement cases; requiring the commissioner to provide estate tax filing +extensions upon request; providing for sufficiency of order of assessment notices +sent by electronic mail; applying the penalty for false or fraudulent tax +returns to persons failing to file with intent to evade or defeat a tax or tax +payments; clarifying the addition to federal taxable income and the credit for +income taxes paid to other states or provinces; clarifying the curriculum +areas for income tax education credit purposes; providing for consistency of +the personal liability standard for withholding taxes with the general standard of+ personal liability for trust taxes; clarifying the requirement for removal +from the sustainable forest program for failure to return the annual +certification and providing for the effectiveness of covenants under the program; +eliminating certain obsolete language relating to revocation of distributor +licenses under the unfair cigarette sales act; applying the penalties for corporate +franchise tax violations to metropolitan solid waste landfill fee payment +requirements; repealing certain rules relating to the estimated tax either replaced+ with or repealed by statutory language ARTICLE 14 � BLUE WATERSEstablishing a new property classification with a reduced property +tax rate for certain unimproved property bordering public waters, specifying +certain covenant agreement requirements (ra)