HF 2268

SECOND ENGROSSMENT

Omnibus tax bill.

ARTICLE 1: AIDS TO LOCAL GOVERNMENTS AND PROPERTY TAX REFUND

Sections 1-2: Homeowners language modified.

Section 3: Inflation adjustment language modified.

Section 4: City aid base language modified.

Section 5: County transition aid language modified.

Section 6: Towns language modified.

Section 7: City formula aid language modified.

Section 8: City aid distribution language modified.

Section 9: Appropriation language modified.

Section 10: Types of land; payments language modified.

Section 11: General distribution language modified.

Section 12: Mahnomen county; county, city, school district property tax reimbursement language modified.

Section 13: Utility property; tax base adjustments for calculation of school district aids and levies language provided.

Section 14: Utility property; tax base adjustments for calculation of county, city, and town aids language provided.

Section 15: Mahnomen county; city, county and school district tax base adjustments language provided.

Section 16: Grand Marais and Cook county fire aid language provded.

Section 17: Study of aids to local governments language provided.

Section 18: Repealer language provided.

ARTICLE 2: PROPERTY TAXES

Section 1: Allocation language modified.

Section 2: Retired employee health benefits language modified.

Section 3: Methodology language modified.

Section 4: rate adjustment; property tax change language modified.

Section 5: Modular homes used as models by dealers language provided.

Section 6: Electric generation facility; personal property language provided.

Section 7: Apprenticeship training facilities language provided.

Section 8: Monosloped roofs for feedlots and manure storage areas language provided.

Section 9: Requirement language modified.

Section 10: Agricultural use language modified.

Section 11: Agricultural value determination language provided.

Section 12: Implementation of program language modified.

Section 13: Applications; denied by county language provided

Section 14: Local option; other property language modified.

Section 15: Agricultural homesteads; special provisions language modified.

Section 16: annual registration of certain relative homesteads language provided.

Section 17: Manufactured homes; sectional structures language modified.

Section 18: Requirement language modified.

Section 19: Class 1 language modified.

Section 20: Class 2 language modified.

Section 21: Class 3 language modified.

Section 22: class 4 language modified.

Section 23: Classification of unimproved property language modified.

Section 24: Homestead of disabled veteran language provided.

Section 25: Certification of class 1b property language modified.

Section 26: Seasonal residential recreational tax capacity language modified.

Section 27: Joint public hearing; nonmetropolitan county, cities, and school districts language provided.

Section 28: Special taxing districts; definition modified.

Section 29: Contents of tax statements language modified.

Section 30: Dismissal of petition; exclusion of certain evidence language modified.

Section 31: Class 3a property language modified.

Section 32: Delinquent taxes may be paid in inverse order language modified.

Section 33: Long and short forms; local use tax instructions; property tax refund information language modified.

Section 34: Property tax statement language modified.

Section 35: Calculation of incentive payment language modified.

Section 36: Definition of municipality language modified.

Section 37: General powers of authority language provided.

Section 38: Creation of an airport authority; dissolution language provided.

Section 39: Tax levy may be certified by an airport authority provided.

Section 40: Hardship assessment deferral for seniors, disabled, or military persons language modified.

Section 41: Minneapolis, city of; street maintenance and lighting language modifie.d

Section 42: Tax; payment of expenses language modified.

Section 43: Tax levy language modified.

Section 44: Exchange of tax-forfeited land; private sale; Itasca county language modified.

Section 45: Fiscal disparities study language provided.

Section 46: City of Brooklyn center; participation in crime-free multihousing program language provided.

Section 47: Clair A. Nelson memorial forest, Lake county; temporary suspension of apportionment of proceeds from tax-forfeited lands language provided.

Section 48: Lakeview cemetery association language provided.

Section 49: Tax-forfeited lands; Itasca county language provided.

Section 50: Ham Lake fire; property tax reduction; state reimbursement language provided.

Section 51: Improving public awareness and participation in property tax relief programs language provided.

Section 52: Repealer provided.

ARTICLE 3: CORPORATE FRANCHISE TAX

Section 1: Foreign operating corporation language modified.

Section 2: Corporations; additions to federal taxable income language modified.

Section 3: Corporations; modifications decreasing federal taxable income language modified.

Section 4: Apportionment formula of general application language modified.

ARTICLE 4: INDIVIDUAL INCOME TAXES

Section 1: Internal Revenue Code language modified.

Section 2: Returns by persons, corporations, cooperatives, governmental entities, or school districts language modified.

Section 3: Net income language modified.

Section 4: Additions to federal taxable income language modified.

Section 5: Subtractions from federal taxable income language modified.

Section 6: Internal Revenue Code language modified.

Section 7: Investment tax credit language modified.

Section 8: Highway fuels tax credit language provided.

Section 9: Credit allowed language modified.

Section 10: Nondeductible items language modified.

Section 11: Income not derived from conduct of a trade or business language modified.

Section 12: Payments to persons who are not employees language provided.

Section 13: internal Revenue Code language modified.

Section 14: Scope language modified.

Section 15: audit and report to legislature language provided.

ARTICLE 5: SALES AND USE TAX

Section 1: Sales and use tax language modified.

Section 2: Accelerated payment of June sales liability; penalty for underpayment language modified.

Section 3: Manufactured and modular housing language provided.

Section 4: Capital equipment language modified.

Section 5: Materials consumed in agricultural production language modified.

Section 6: Repair and replacement parts language modified.

Section 7: Machinery, equipment, and fencing language modified.

Section 8: sales of certain goods and services to government language modified.

Section 9: Regionwide public safety radio communication system; products and services language modified.

Section 10: Construction materials for qualified low-income housing projects language modified.

Section 11: Legal reference and data center facility provided.

Section 12: Tax collected language modified.

Section 13: Refund; eligible persons language modified.

Section 14: Application language modified.

Section 15: Authorization; scope language modified.

Section 16: Exemptions language modified.

Section 17: Laws language modified.

Section 18: Low tax in towns language modified.

Section 19: Use of revenues language modified.

Section 20: Expiration of taxing authority and expenditure limitation language modified.

Section 21: Bonds language modified.

Section 22: Sales and use tax language modified.

Section 23: Use of revenues language modified.

Section 24: Bonding authority language modified.

Section 25: City of Bemidji language modified.

Section 26: City of Clearwater; taxes authorized language provided.

Section 27: Cook county; lodging and admissions taxes language provided.

Section 28: City of North Mankato; Taxes authorized language provided.

Section 29: Minnetonka water treatment facility language provided.

Section 30: City of Winona; taxes authorized language provided.

Section 31: Joint legislative subcommittee on sales and use tax language provided.

ARTICLE 6: ECONOMIC DEVELOPMENT

Section 1: Dairy investment grant program language provided.

Section 2: Definitions language modified.

Section 3: Historic structure rehabilitation grants language provided.

Section 4: Use of data language modified.

Section 5: Disclosure to legislative auditor and state auditor language modified.

Section 6: Job opportunity building zone property language modified.

Section 7: Fergus Falls historical zone language provided.

Section 8: Reports of job opportunity zone benefits; penalty for failure to file report language provided.

Section 9: Additional border city allocations; 2007 language provided.

Section 10: Redevelopment district language modified.

Section 11: Renewal and renovation district language modified.

Section 12: Tax increment financing plan language modified.

Section 13: Municipality approval language modified.

Section 14: Duration of tax increment financing districts language modified.

Section 15: Excess increments language modified.

Section 16: Prohibited facilities language modified.

Section 17: Parcels not includable in districts language modified.

Section 18: Requirement imposed language modified.

Section 19: Expenditures outside district language modified.

Section 20: Original net tax capacity language modified.

Section 21: Interfund loans language modified.

Section 22: Preconditions to establish district language modified.

Section 23: Duration limit language modified.

Section 24: Restrictions on relocations language provided.

Section 25: State auditor; audits of job opportunity building zones and business subsidiary agreements language modified.

Section 26: Use of proceeds language modified.

Section 27: Bloomington computation language provided.

Section 28: Areawide tax rate language modified.

Section 29: Certification of values; payment language modified.

Section 30: Establishment language modified.

Section 31: Eligible activities language modified.

Section 32: Housing account language modified.

Section 33: Authority language modified.

Section 34: Creation of projects language modified.

Section 35: Grants to qualifying business language modified.

Section 36: City of Bloomington; tax increment financing district; project requirements language provided.

Section 37: City of Bloomington; local authority language provided.

Section 38: Burnsville; northwest quadrant tax increment language provided.

Section 39: City of Eagan; tax increment financing district language provided.

Section 40: City of Eyota; tax increment financing district language provided.

Section 41: City of Fridley; tax increment financing district; special rules language provided.

Section 42: City of New Brighton; tax increment financing; expenditures outside district language provided.

Section 43: 2008 Republican National Convention expense; appropriation language provided.

Section 44: Appropriation; grant to Fergus Falls language provided.

Section 45: Appropriation; dairy investment grants language modified.

Section 46: Appropriation; Minnesota Historical Society language provided.

Section 47: Repealer provided.

ARTICLE 7: PUBLIC FINANCE

Section 1: Amount language modified.

Section 2: Purchase of certain equipment language modified.

Section 3: Market value language modified.

Section 4: Time of notice language modified.

Section 5: Definitions language modified.

Section 6: Creation language modified.

Section 7: Financing language modified.

Section 8: Petition for removal of district; procedure language modified.

Section 9: Capital notes language modified.

Section 10: Limitations on amount language modified.

Section 11: Financing language modified.

Section 12: Equipment acquisition; capital notes language modified.

Section 13: Creation language modified.

Section 14: Limitation language modified.

Section 15: Cities may issue capital notes for capital equipment language modified.

Section 16: Financing purchase of certain equipment language modified.

Section 17: City language modified.

Section 18: Trust for postemployment benefits language provided.

Section 19: Obligations language provided.

Section 20: Anticipation of grants language modified.

Section 21: Net debt language modified.

Section 22: Certain purposes language modified.

Section 23: Grant anticipation financing of transportation or transit projects language provided.

Section 24: Generally language modified.

Section 25: Approval by electors; exceptions language modified.

Section 26: Street reconstruction language modified.

Section 27: Validation language provided.

Section 28: Town of Crane Lake, certificates of indebtedness language provided.

Section 29: City of Winsted; Bonding authority language provided.

ARTICLE 8: MINERALS

Section 1: Commercial-industrial property language modified.

Section 2: Increase in net tax capacity language modified.

Section 3: Forest trust language provided.

Section 4: Iron Range Higher Education Committee; membership language modified.

Section 5: Imposed; calculation language modified.

Section 6: Taxes additional to occupation tax; in lieu of other taxes language modified.

Section 7: Cities; towns language modified.

Section 8: School districts language modified.

Section 9: Counties language modified.

Section 10: Property tax relief language modified.

Section 11: Iron Range higher education account language provided.

Section 12: Use of money language modified.

Section 13: Expenditure of funds language modified.

Section 14: Grant and loan fund language modified.

Section 15: Public works and local economic development fund language modified.

Section 16: Definitions language modified.

Section 17: Report and remittance language modified.

Section 18: Proceeds of taxes language modified.

Section 19: Tax may be imposed' Otter Tail county language provided.

Section 20: Iron range resources and rehabilitation board appropriation; retire bonds language provided.

Section 21: Appropriations; Department of Education language provided.

Section 22: Repealer language modified.

ARTICLE 9: SPECIAL TAXES

Section 1: Determination language modified.

Section 2: All-terrain vehicle language modified.

Section 3: Accelerated tax payment; cigarette or tobacco products distributor language modified.

Section 4: Inventory; judicial determination; appeal; disposition of seized property language modified.

Section 5: Accelerated tax payment; penalty language modified.

Section 6: Premiums paid to certain foreign insurance companies language modified.

Section 7: Expiration language modified.

Section 8: Creation language modified.

Section 9: Uses of fund language modified.

Section 10: Expiration language modified.

Section 11: County deed and mortgage tax language provided.

Section 12: Environmental response fund language provided.

Section 13: County deed and mortgage tax language provided.

Section 14: Environmental response fund language provided.

Section 15: County deed and mortgage tax language provided.

Section 16: Environmental response fund language provided.

Section 17: Temporary petrofund fee exemption for Minnesota commercial airlines language modified.

ARTICLE 10: DEPARTMENT INCOME AND FRANCHISE TAXES

Section 1: Debt language modified.

Section 2: Information included in income tax return language modified.

Section 3: Withholding statement to employee or payee and to commissioner language modified.

Section 4: Regulated investment companies; reporting exempt-interest language modified.

Section 5: Individual income, fiduciary income, corporate franchise, and entertainment taxes; partnership and S corporation returns; information returns; mining company returns language modified.

Section 6: Penalties; failure to file informational return; incorrect taxpayer identification number language modified.

Section 7: Penalties relating to property tax refunds language modified.

Section 8: Reportable transaction understatement language modified.

Section 9: Preparer identification number language provided.

Section 10: Subtractions from federal taxable income language modified.

Section 11: Corporations; additions to federal taxable income language modified.

Section 12: corporations; modifications decreasing federal taxable income language modified.

Section 13: Bovine testing credit language modified.

Section 14: Inflation adjustment language modified.

Section 15: Inflation adjustment language modified.

Section 16: Exemption amount language modified.

Section 17: Alternative minimum taxable income language modified.

Section 18: Deposit; definition language modified.

Section 19: Dependent language modified.

Section 20: Determination language modified.

Section 21:Transition; pollution control facilities amortization language modified.

ARTICLE 11: DEPARTMENT SALES AND USE TAXES

Section 1: Bad debt loss language modified.

Section 2: Border city zone refunds language modified.

Section 3: Penalty for failure to properly complete sales and use tax return language modified.

Section 4: Penalty for failure to report liquor sales language modified.

Section 5: Sale and purchase language modified.

Section 6: Retail sale language modified.

Section 7: Sales price language modified.

Section 8: Tangible personal property language modified.

Section 9: Telecommunications services language modified.

Section 10: Bundled transaction language modified.

Section 11: Ancillary services language modified.

Section 12: Conference bridging service language provided.

Section 13: Detailed telecommunications billing service language provided.

Section 14: Directory assistance language provided.

Section 15: Vertical service language provided.

Section 16: Voice mail service language modified.

Section 17: Ring tone language modified.

Section 18: fur clothing language modified.

Section 19: Use of tangible personal property or taxable services language modified.

Section 20: Presumption of tax; burden of proof language modified.

Section 21: Defined telecommunications services sourcing language modified.

Section 22: Postpaid calling service language modified.

Section 23: Prepaid calling service language modified.

Section 24: Prepaid wireless calling service language modified.

Section 25: Ancillary service language modified.

Section 26: Drugs; medical devices language modified.

Section 27: Clothing language modified.

Section 28: Baby products language modified.

Section 29: Advertising materials language modified.

Section 30: Packing materials language modified.

Section 31: Telecommunications language modified.

Section 32: Materials consumed in agricultural production language modified.

Section 33: Hospitals and outpatient surgical centers language modified.

Section 34: Private communication service for State Lottery language provided.

Section 35: Exemption certificates language modified.

Section 36: Liquor reporting requirements; penalty language modified.

Section 37: Payment of tax language modified.

Section 38: ordinary course of business language modified.

Section 39: Sales tax exemption; equipment; construction materials language modified.

Section 40: Fur tax payments language modified.

Section 41: Repealer provided.

ARTICLE 12: DEPARTMENT PROPERTY TAXES

Section 1: Flight property language modified.

Section 2: Assessment of flight property language modified.

Section 3: Report by airline company language modified.

Section 4: Airflight property tax lien language modified.

Section 5: Penalties language provided.

Section 6: Examination; investigations; subpoenas language provided.

Section 7: Tax capacity language modified.

Section 8: Appeal language modified.

Section 9: Creation; purpose; powers language modified.

Section 10: Definition language provided.

Section 11: Members language modified.

Section 12: License; refusal or revocation language modified.

Section 13: Prohibited activity language modified.

Section 14: Charges for course, examinations or materials language modified.

Section 15: Disposition of fees language modified.

Section 16: Training courses, regulation language modified.

Section 17: Rules language modified.

Section 18: Licensure of qualified persons language modified.

Section 19: Employment of licensed assessors language modified.

Section 20: Commissioner may require social security or identifying numbers on forms language modified.

Section 21: Authority language modified.

Section 22: Job opportunity building zone property language modified.

Section 23: Requirement language modified.

Section 24: Cities and townships; employment of licensed assessor language provided.

Section 25: County or local assessing district to assume cost of training language provided.

Section 26: Requirements language modified.

Section 27: Conservation property tax valuation language modified.

Section 28: Valuation of real property, notice language modified.

Section 29: Reassessment of homestead property language modified.

Section 30: Computation of local tax rates language modified.

Section 31: Homestead application language modified.

Section 32: Disparity reduction credit language modified.

Section 33: Listing and assessment by commissioner language modified.

Section 34: Listing and assessment by commissioner language modified.

Section 35: Report required language modified.

Section 36: Recommended and ordered values language modified.

Section 37: Ordinary board; meetings, deadlines, grievances language modified.

Section 38: Members; meetings; rules for equalizing assessments language modified.

Section 39: County boards; appeals and equalization course and meeting requirements language provided.

Section 40: Notice of proposed property taxes language modified.

Section 41: Public advertisement language modified.

Section 42: Special taxing districts; organization date; certification of levy or special assessments language modified.

Section 43: Electronic tax statements language modified.

Section 44: Partial payments language modified.

Section 45: Due dates; penalties language modified.

Section 46: Qualifying homestead; defined language modified.

Section 47: Claimant language modified.

Section 48: Applications language modified.

Section 49: Annual certification language modified.

Section 50: Penalties for removal language modified.

Section 51: Appeals language modified.

Section 52: Repealer provided.

ARTICLE 13: DEPARTMENT SPECIAL TAXES

Section 1: Deficit assessments language modified.

Section 2: Premium tax language modified.

Section 3: Exemptions language modified.

Section 4: Tax-forfeited land language modified.

Section 5: Use tax; prescription drugs language modified.

Section 6: Tax collection language modified.

Section 7: Pharmacy refund language modified.

Section 8: Tobacco products use tax language modified.

Section 9: Consumer use tax; use tax return; cigarette consumer language provided.

Section 10: Insurance policies surcharge language modified.

Section 11: Exemptions language modified.

Section 12: Joint Underwriting Association offset language modified

Section 13: Definition of tax language modified.

ARTICLE 14 DEPARTMENT MISCELLANEOUS

Section 1: Duties language modified.

Section 2: Agency participation language modified.

Section 3: Computation language modified.

Section 4: Adjustment of rate language modified.

Section 5: Refunds not subject to attachment or garnishment language modified.

Section 6: Required and excluded tax prepares language modified.

Section 7: Liability imposed language modified.

Section 8: Period of limitations language modified.

Section 9: State reimbursement language modified.

ARTICLE 15: MISCELLANEOUS

Section 1: Local impact notes language modified.

Section 2: Miscellaneous exceptions language modified.

Section 3: Compilation of local impact notes language modified.

Section 4: Certain political subdivisions; report language modified.

Section 5: Forecast parameters language modified.

Section 6: Forecast variable language modified.

Section 7: Local revenue language modified.

Section 8: Budget reserve increase language modified.

Section 9: Additional revenues; priority language modified.

Section 10: Tax volatility reduction account language modified.

Section 11: Registration or notice filing fee language modified.

Section 12: Registration or notice filing fee language modified.

Section 13: Claimant agency language modified.

Section 14: Priority of claims language modified.

Section 15: Powers and duties language modified.

Section 16: Taxpayer assistance grants language modified.

Section 17: Runway safety and airport zoning advisory task force; appropriation language modified.

Section 18: Data update language modified.

Section 19: Financial management language modified.

Section 20: Appropriations language provided.

Section 21: Appropriations; St. Paul river centre debt service costs language modified.

Section 22: Repealer provided.

JAJ 5/29/7