HF 2362

SECOND ENGROSSMENT

Omnibus tax bill modifying income, property, franchise, sales and use, motor vehicle sales, health care provider, tobacco, insurance, mortgage, gambling, and other tax provisions; and appropriating money.

ARTICLE 1: HOMESTEAD CREDIT STATE REFUND HOMEOWNERS AND RENTERS

Section 1: Residential homestead market value credit language modified.

Section 2: Contents of tax statements language modified.

Section 3: Property taxes payable language modified.

Section 4: Renters language modified.

Section 5: Additional refund language added.

Section 6: Homestead credit state refund language provided.

Section 7: Table language modified.

Section 8: Inflation adjustment language modified.

Section 9: Repealer language provided.

ARTICLE 2: AIDS TO LOCAL GOVERNMENTS

Section 1: City revenue need language modified.

Section 2: City aid base language modified.

Section 3: County transition aid language modified.

Section 4: City formula aid language modified.

Section 5: City aid distribution language modified.

Section 6: Towns language provided.

Section 7: Appropriation language modified.

Section 8: Types of land; payments language modified.

Section 9: General distribution language modified.

Section 10: Utility property; tax base adjustments for calculation of school district aids and levies language provided.

Section 11: Utility property; tax base adjustments for calculation of county and city aids language provided.

Section 12: Mahnomen county; county property tax reimbursement, city and school district tax base adjustments language provided.

Section 13: Study of city local government aid program language provided.

ARTICLE 3: PROPERTY TAXES

Section 1: Allocation language provided.

Section 2: Agricultural lands language added.

Section 3: Modular homes used as models by dealers language provided.

Section 4: Electric generation facility; personal property language provided.

Section 5: Apprenticeship training facilities language provided.

Section 6: Requirement language provided.

Section 7: Limited market value language modified.

Section 8: Valuation exclusion for certain improvements language provided.

Section 9: Applications; denied by county language provided.

Section 10: Local option; other property language provided.

Section 11: General rule language added.

Section 12: Agricultural homesteads; special provisions language modified.

Section 13: Manufactured homes; sectional structures language modified.

Section 14: Requirements language modified.

Section 15: Participation in crime-free multihousing program language provided.

Section 16: Class 1 language modified.

Section 17: Class 2 language modified.

Section 18: Class 3 language modified.

Section 19: Class 4: language modified.

Section 20: Classification of unimproved property language modified.

Section 21: Homestead of disabled veteran language provided.

Section 22: Supplemental notice of proposed levy increases language provided.

Section 23: Joint public hearing; nonmetropolitan county, cities, and school districts language provided.

Section 24: Dismissal of petition; exclusion of certain evidence language modified.

Section 25: Homestead property; monthly payment option language provided.

Section 26: Class 3a property language provided.

Section 27: Delinquent taxes may be paid in inverse order language modified.

Section 28: Long and short forms; local use tax instructions; property tax refund information language added.

Section 29: Property tax refund claims language added.

Section 30: Program qualifications language modified.

Section 31: Qualifying homestead; defined language provided.

Section 32: Excess-income certification by taxpayer language modified.

Section 33: Resumption of eligibility certification by taxpayer language modified.

Section 34: Determination by commissioner language modified.

Section 35: Lien; deferred portion language modified.

Section 36: Calculation of incentive payment language modified.

Section 37: Citation language provided.

Section 38: Terms language provided.

Section 39: Qualifications for deferral language provided.

Section 40: Application for deferral language provided.

Section 41: Deferred property tax amount language provided.

Section 42: Lien; deferred portion language provided.

Section 43: Termination of deferral; payment of deferred taxes language provided.

Section 44: State reimbursement language provided.

Section 45: Tax may be imposed; Otter Tail County language provided.

Section 46: Hardship assessment deferral for seniors, disabled, or military persons language modified.

Section 47: Use of term language modified.

Section 48: Use of proceeds language modified.

Section 49: Areawide tax rate language provided.

Section 50: Certification of values; payment language provided.

Section 51: Minneapolis, city of; street maintenance and lighting language added.

Section 52: Exchange of tax-forfeited land; private sale; Itasca County language modified.

Section 53: Fiscal disparities study language provided.

Section 54: Improving public awareness and participation in property tax relief programs language provided.

Section 55: Truth in taxation; costs and participation study language provided.

Section 56: Clair A. Nelson Memorial Forest, Lake county; temporary suspension of apportionment of proceeds for tax-forfeited lands language provided.

Section 57: Lakeview Cemetery association language provided.

Section 58: Tax-forfeited lands lease; Itasca County language provided.

Section 59: Repealer provided.

ARTICLE 4: CORPORATE FRANCHISE TAX

Section 1: Corporations language modified.

Section 2: Domestic corporation language modified.

Section 3: Corporations; additions to federal taxable income language modified.

Section 4: Corporations; modifications decreasing federal taxable income language modified.

Section 5: Alternative minimum taxable income language modified.

Section 6: Unitary business principle language modified.

Section 7: Election to include foreign corporations language provided.

Section 8: Apportionment formula of general application language modified.

Section 9: Apportionment formula for financial institutions language modified.

Section 10: Determination of sales factor language modified.

Section 11: Dividends received from another corporation language modified.

Section 12: Transition; pollution control facilities amortization language provided.

Section 13: Repealer provided.

ARTICLE 5: INDIVIDUAL INCOME TAX

Section 1: Internal Revenue Code language added.

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

Section 3: Net income language modified.

Section 4: Subtractions from federal taxable income language modified.

Section 5: Internal Revenue Code language modified.

Section 6: Schedules of rates for individuals, estates, and trusts language modified.

Section 7: Inflation adjustment of brackets language modified.

Section 8: Dairy investment credit language provided.

Section 9: Amount of credit language modified.

Section 10: Credit allowed language modified.

Section 11: Credit for historic structure rehabilitation language provided.

Section 12: Exemption amount language modified.

Section 13: Income not derived from conduct of a trade or business language modified.

Section 14: Payments to persons who are not employees language provided.

Section 15: Internal Revenue Code language modified.

ARTICLE 6: SALES AND USE TAXES

Section 1: Capital improvements language provided.

Section 2: Sales and use tax language provided.

Section 3: Farm machinery language modified.

Section 4: Manufactured and modular housing language provided.

Section 5: Drugs; medical devices language modified.

Section 6: Agricultural feed processing facility; capital equipment language provided.

Section 7: Materials consumed in agricultural production language modified.

Section 8: Repair and replacement parts language added.

Section 9: Sales of certain goods and services to government language added.

Section 10: Regionwide public safety radio communication system; products and services language modified.

Section 11: Sales to fire departments language provided.

Section 12: Construction materials for qualified low-income housing projects language modified.

Section 13: Brainerd and Baxter wastewater treatment facility language provided.

Section 14: Baxter water treatment facility language provided.

Section 15: Buffalo wastewater treatment facility language provided.

Section 16: Burnsville surface water treatment plant language provided.

Section 17: Emily; wastewater treatment facility language provided.

Section 18: Goodview; water treatment facilities language provided.

Section 19: Harris wastewater treatment facility language provided.

Section 20: Milaca water treatment facility language provided.

Section 21: Minnetonka water treatment facility; sales tax exemption language provided.

Section 22: New Prague wastewater treatment facility language provided.

Section 23: New York Mills wastewater treatment facility language provided.

Section 24: Pelican Rapids wastewater treatment facility language provided.

Section 25: Princeton; wastewater treatment facility language provided.

Section 26: Willmar wastewater treatment facility language provided.

Section 27: Bioscience research facilities language provided.

Section 28: Biobusiness center language provided.

Section 29: Tax imposed and collected language modified.

Section 30: Tax collected; other language provided.

Section 31: Refund; eligible persons language modified.

Section 32: Application language added.

Section 33: Authorization; scope language added.

Section 34: Exemptions language added.

Section 35: City of Duluth language modified.

Section 36: City of Bemidji language added.

Section 37: City of Crookston; taxes authorized language provided.

Section 38: City of North Mankato; Taxes authorized language provided.

Section 39: Study of sales and use tax language provided.

ARTICLE 7: ECONOMIC DEVELOPMENT

Section 1: Use of data language modified.

Section 2: Disclosure to legislative auditor and state auditor language added.

Section 3: Job opportunities building zone property language modified.

Section 4: Report of job opportunity benefits; penalty for failure to file report language provided.

Section 5: Additional border city allocations; 2007 language provided.

Section 6: Redevelopment district language added.

Section 7: Renewal and renovation district language modified.

Section 8: Small city language added.

Section 9: Tax increment financing plan language added.

Section 10: Municipality approval language provided.

Section 11: Duration of tax increment financing districts language added.

Section 12: Excess increments language added.

Section 13: Prohibited facilities language added.

Section 14: Parcels not includable in districts language provided.

Section 15: Requirement imposed language added.

Section 16: Expenditures outside district language modified.

Section 17: Original net tax capacity language added.

Section 18: Interfund loans language added.

Section 19: Preconditions to establish district language added.

Section 20: Qualified farm language provided.

Section 21: Restrictions on relocations language provided.

Section 22: FARMZ; special rules language provided.

Section 23: Commissioner to designate language added.

Section 24: State auditor; audits of job opportunity building zones and business subsidy agreements language added.

Section 25: Bioscience business grants language provided.

Section 26: Establishment language modified.

Section 27: Eligible activities language modified.

Section 28: Housing account language added.

Section 29: Authority language modified.

Section 30: Creation of projects language modified.

Section 31: Eagan; tax increment financing language provided.

Section 32: Tax increment financing; city of Dayton language provided.

Section 33: City of Fridley; tax increment financing district special rules language provided.

Section 34: City of Taylor Falls; border city development zone language provided.

Section 35: Bioscience grants; appropriation language provided.

Section 36: Appropriation; Minnesota film and TV board language provided.

Section 37: Repealer provided.

ARTICLE 8: MINERALS

Section 1: Forest trust language provided.

Section 2: Iron Range Higher Education Committee; membership language modified.

Section 3: School districts language added.

Section 4: Iron Range higher education account language provided.

Section 5: Use of money language added.

Section 6: Grant and loan fund language added.

Section 7: Iron Range resources and rehabilitation board appropriation; retire bonds language provided.

Section 8: Iron range memorial forest language provided.

ARTICLE 9: SPECIAL TAXES

Section 1: Scope language modified.

Section 2: Tax amount language modified.

Section 3: Definitions language provided.

Section 4: Qualified farm property language provided.

Section 5: Qualified small business property language provided.

Section 6: Recapture tax language provided.

Section 7: Determination language modified.

Section 8: Hockey heritage surcharge language provided.

Section 9: All-terrain vehicle language modified.

Section 10: Tax rates for fiscal years 2008 to 2010 language provided.

Section 11: Moist snuff language provided.

Section 12: Tobacco products language modified.

Section 13: Rates; tobacco products language modified.

Section 14: Use tax; tobacco products language modified.

Section 15: Adjustment for inflation language provided.

Section 16: Inventory; judicial determination; appeal; disposition of seized property language modified.

Section 17: Premiums paid to certain foreign insurance companies language provided.

Section 18: Dakota County deed and mortgage tax language provided.

Section 19: Dakota County environmental response fund language provided.

Section 20: Anoka county deed and mortgage tax language provided.

Section 21: Anoka County environmental response fund language provided.

Section 22: Repealer provided.

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 dividends 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 added.

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

Section 8: Reportable transaction understatement language added.

Section 9: Preparer identification number language provided.

Section 10: Bovine testing credit language added.

Sections 11-12: Inflation adjustment language modified.

Section 13: Deposit; definition language added.

Section 14: Dependent language modified.

ARTICLE 11: DEPARTMET SALES AND USE TAXES

Section 1: Bad debt loss language modified.

Section 2: Border city zone refunds language provided.

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 provided.

Section 5: Sale and purchase language modified.

Section 6: Retail sale language provided.

Section 7: Sales price language modified.

Section 8: Tangible personal property language modified.

Section 9: Telecommunications services language modified.

Section 10: Bundled transaction language provided.

Section 11: Ancillary services language provided.

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 provided.

Section 17: Ring tone language provided.

Section 18: Fur clothing language provided.

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

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

Section 21: Defined telecommunications services sourcing language modified.

Section 22: Postpaid calling service language provided.

Section 23: Prepaid calling service language modified.

Section 24: Prepaid wireless calling service language provided.

Section 25: Ancillary service language provided.

Section 26: Clothing language modified.

Section 27: Baby products language provided.

Section 28: Advertising materials language added.

Section 29: Packing materials language added.

Section 30: Telecommunications, cable television, and direct satellite equipment language added.

Section 31: Hospitals and outpatient surgical centers language added.

Section 32: Private communication service for State Lottery language provided.

Section 33: Exemption certificates language modified.

Section 34: Liquor reporting requirements; penalty language provided.

Section 35: Payment of tax language modified.

Section 36: Ordinary course of business language added.

Section 37: Sales tax exemption; equipment; construction materials language added.

Section 38: Fur tax payments language provided.

Section 39: Repealer provided.

ARTICLE 12: DEPARTMENT PROPERTY TAXES AND AIDS

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 modified.

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 courses; examination or materials language modified.

Section 15: Disposition of fees language added.

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: Trust property; homestead language modified.

Section 33: Disparity reduction credit language modified.

Sections 34-35: Listing and assessment by commissioner language modified.

Section 36: Report required language modified.

Section 37: Recommended and ordered values language provided.

Section 38: Ordinary board; meetings, deadlines, grievances language added.

Section 39: Members; meetings; rules for equalizing assessments language added.

Section 40: County boards; appeals and equalization course and meeting requirements language provided.

Section 41: Notice of proposed property taxes language added.

Section 42: Public advertisement language added.

Section 43: Special taxing districts; organization date; certification of levy or special assessments language modified.

Section 44: Electronic tax statements language provided.

Section 45: Partial payments language modified.

Section 46: Due dates; penalties language modified.

Section 47: Claimant language modified.

Section 48: Applications language modified.

Section 49: Annual certification language added.

Section 50: Penalties for removal language modified.

Section 51: Appeals language provided.

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 added.

Section 5: Use tax; prescription drugs language modified.

Section 6: Tax collection language modified.

Section 7: Pharmacy refund language added.

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 added.

Section 11: Exemptions language modified.

Section 12: Joint Underwriting Association offset language modified.

Section 13: Definition of tax language modified.

ARTICLE 14: MISCELLANEOUS

Section 1: Budget reserve increase language added.

Section 2: Additional revenues; priority language modified.

Section 3: Tax volatility reduction account language provided.

Section 4: Duties language modified.

Section 5: Agency participation language modified.

Section 6: Computation language modified.

Section 7: Adjustment of rate language modified.

Section 8: Minnesota land conservation incentives act language provided.

Section 9: Powers and duties language modified.

Section 10: Taxpayer assistance grants language provided.

Section 11: Refunds not subject to attachment or garnishment language provided.

Section 12: Required and excluded tax preparers language modified.

Section 13: Liability imposed language modified.

Section 14: Period of limitations language added.

Section 15: State reimbursement language modified.

Section 16: Financial management language provided.

Section 17: Homestead credit state refund transition reserve language provided.

Section 18: Lignocellulosic ethanol production grant; appropriation language provided.

Section 19: Appropriation language provided.

Section 20: Appropriations language provided.

JAJ 3/26/7