HF 785

CHAPTER 259
FOURTH ENGROSSMENT

Omnibus tax bill modifying corporate, income, and other tax provisions; and appropriating money.

ARTICLE 1: INCOME AND FRANCHISE TAXES

Section 1: Bovine testing credit provided.
Sec. 2: Military service credit allowed.
Sec. 3: Exemption amount modified.
Sec. 4: Application rule scope modified.

ARTICLE 2: FEDERAL UPDATE

Section 1: Internal revenue code definition modified.
Sec. 2: Net income definition modified.
Sec. 3: Federal taxable income additions modified.
Sec. 4: Technical reference provided.
Sec. 5: Internal revenue code definition provided.
Sec. 6: Earned income of lesser earning spouse definition modified.
Sec. 7: Internal revenue code definition modified.
Sec. 8: Scope modified.

ARTICLE 3: SALES AND USE TAX

Section 1: Language clarificaton.
Sec. 2: Hydroelectric generation facility exemption provided.
Sec. 3: Construction sales tax disposition modified.
Sec. 4: Termination modified.
Sec. 5: Date extended.
Sec. 6-7: Revenue usage modified.
Sec. 8: Election date for Worthington clarified.
Sec. 9: Austin sales and use taxes authorized.
Sec. 10: Baxter sales and use taxes authorized.
Sec. 11: Brainerd sales and use taxes authorized.
Sec. 12: Owatonna sales and use taxes authorized.

ARTICLE 4: PROPERTY TAXES

Section 1: Business subsidy definition modified.
Sec. 2: Referendum revenue authorization modified.
Sec. 3: Ad valorem tax levy increase maximum modified.
Sec. 4: Mandate modified.
Sec. 5-8: Construction dates extended for generation facilities receiving tax exemptions.
Sec. 9: Electric generation facility tax exemption provided.
Sec. 10: Wind energy conversion system definition modified.
Sec. 11: First tier valuation limit for agricultural homestead property provided.
Sec. 12: Armed services and peace corps member homestead tax provision modified.
Sec. 13: Class 2a property provision clarified.
Sec. 14: Authority modified.
Sec. 15: Duration limit modified.
Sec. 16: Extended duration limit modified.
Sec. 17: Abatement limitation clarified.
Sec. 18: Property owner consent requirement modified.
Sec. 19: Utility property applicability specified.
Sec. 20: Dates extended.
Sec. 21: Property tax refund collection action prohibition specified.
Sec. 22: Buffalo ¿ Red River watershed district levy authority specified.
Sec. 23: Cook-Orr hospital district territory addition proivded.
Sec. 24: Rochester school district property tax certification provided.
Sec. 25: Lease levy for Rocori and Faribault provided.

ARTICLE 5: DEPARTMENT OF REVENUE PROPERTY TAXES AND AIDS

Section 1: Class 1 property provision clarified.
Sec. 2: Class 4 property provision modified.
Sec. 3: Residential homestead market value credit modified.
Sec. 4: Agricultural homestead market value credit modified.
Sec. 5: Disparity reduction aid modified.
Sec. 6: Certificate modified.
Sec. 7: County auditor¿s certificate specified as prima facie evidence provision clarified.
Sec. 8: Calculation and payment procedures expanded.

ARTICLE 6: DEPARTMENT OF REVENUE SALES AND
USE TAXES

Section 1: Sale and purchase technical amendment provided.
Sec. 2: Farm machinery definition clarified.
Sec. 3: Computer defined.
Sec. 4: Electronic defined.
Sec. 5: Computer software defined.
Sec. 6: Prewritten computer software definition clarified.
Sec. 7: Logging equipment defined.
Sec. 8: Taxable service use of tangible property provision expanded.
Sec. 9: Multiple points of use modified.
Sec. 10: Mobile telecommunicatons service definition clarified.
Sec. 11: Prepared food, candy, and soft drinks served at schools exempt from taxation.
Sec. 12: Conforming change.
Sec. 14: School computers exemption modified.
Sec. 15: Sewing material exemption provided.
Sec. 16: Job opportunity building zone technical amendments.
Sec. 17: Biotechnology and health sciences industry zone technical amendments.
Sec. 18: Conforming change.
Sec. 19: Tree, bush, and shrub removal to construct and maintain roads provision modified.
Sec. 20-24: Conforming changes.
Sec. 25: Exemption certificate format modified.
Sec. 26: Collected tax usage expanded.
Sec. 27: Eligible persons refund procedure modified.
Sec. 28-30: Technical amendments and conforming changes.
Sec. 31: Date clarified.
Sec. 32: Repealer.

ARTICLE 7: DEPARTMENT OF REVENUE SPECIAL TAXES AND FEES

Section 1: Registration fees modified.
Sec. 2: Financing transfer deed tax provided.
Sec. 3: Helath care provider definition modified.
Sec. 4: Tax statement modified.
Sec. 5: Weighted average retail price defined.
Sec. 6: Distilled spirits definition modified.
Sec. 7: Flavored malt beverage defined.

ARTICLE 8: DEPARTMENT OF REVENUE MISCELLANEOUS

Section 1: Electronic means definition modified.
Sec. 2: Electronically filed returnes clarified.
Sec. 3: Assessment review procedures modified.
Sec. 4-5: Technical clarifying changes.
Sec. 6: Exempt property specified.
Sec. 7: Accrual date clarified.
Sec. 8: Reportable transactions effective date provided.

ARTICLE 9: PUBLIC FINANCE

Section 1: Technical references added.
Sec. 2: Payable procedures and eligibility specified.
Sec. 3: Amount limitation revised.
Sec. 4: Conforming change.
Sec. 5: Market value definition modified.
Sec. 6: Debt obligation definition clarified.
Sec. 7-10: Conforming and technical changes.
Sec. 11: Carver county authority name change authorized.
Sec. 12: Ramsey general obligation bonds authorized.
Sec. 13: Unified pool for office of higher education temporary priority established.
Sec. 14: Unified pool temporary priority change provided.
Sec. 15: Office of higher education total allocation provided.

ARTICLE 10: TAX INCREMENT FINANCING

Section 1: Consultations comment procedure modified.
Sec. 2: Plan modification clause clarified.
Sec. 3: Annual disclosure technical language clarification provided.
Sec. 4: Duration technical reference added.
Sec. 5-6: Technical and conforming changes.
Sec. 7: Decertification revenue usage clarified.
Sec. 8: Pooiing permission clause clarified.
Sec. 9: Net tax capacity effective date established.
Sec. 10: Date clarified.
Sec. 11: Elector approval clarified.
Sec. 12: Burnsville TIF district established.
Sec. 13: Detroit Lakes TIF district establsihed.
Sec. 14: Minneapolis TIF district established.
Sec. 15: Faribault TIF district established.
Sec. 16: Brooklyn Park TIF district established.
Sec. 17: Repealer.

ARTICLE 11: AIDS AND CREDITS

Section 1: City aid base determination procedure expanded.
Sec. 2: City aid distribution modified.
Sec. 3: Mahnomen county tax reimbursment appropriation provided.

ARTICLE 12: MINERALS

Section 1: Producer defined.
Sec. 2: Occupation tax computation procedure clarified.
Sec. 3: Gross income computation procedure clarified.
Sec. 4: Deductions allowable clarified.
Sec. 5: Iron ore occupation tax clarified.
Sec. 6: Gross income for iron ore or taconite combination authorized.
Sec. 7: Deductions specified.
Sec. 8: Applicable deductions for minerals specified.
Sec. 9: Economic development fund clarified.
Sec. 10: Technical clarification.
Sec. 11: Percent of taxable ton increased.
Sec. 12: Grant and loan fund expanded.
Sec. 13: Public works and local economic development fund established.
Sec. 14: Sylvan township tax imposition authorized.
Sec. 15: Issuance modified.
Sec. 16: Transition provisions provided.
Sec. 17: Repealer.

ARTICLE 13: MISCELLANEOUS

Section 1: International economic development zone property modified.
Sec. 2: Sales and use tzx percentage modified.
Sec. 3: Accelerated payment of June sales tax liabliity clarified.
Sec. 4: Exemptions clarified.
Sec. 5: Minnesota proprety and Minnesota payrolls definitions modified.
Sec. 6: International economic development zones clarified.
Sec. 7: Effective dates set.
Sec. 8: Conforming change.
Sec. 9; Foreign trade zones application authorized.
Sec. 10: Duration limit specified.
Sec. 11: IEDZ designation clarified.
Sec. 12: Business plan findings specified.
Sec. 13: Jobs credit authorized.
Sec. 14: Obligations established.
Sec. 15: Tax defined.
Sec. 16: Date extended.
Sec. 17: Tax relief account cancelation authorized.
Sec. 18: Applicability clause provided.

AME
5/22/06