<a id="pl.1.4"></a><var>1.4</var>policy, technical, administrative, enforcement, collection, refund, clarifying, <br/>
<a id="pl.1.5"></a><var>1.5</var>and other changes to income, franchise, property, sales and use, minerals, <br/>
<a id="pl.1.6"></a><var>1.6</var>wheelage, mortgage, deed, and estate taxes, and other taxes and tax-related <br/>
<a id="pl.1.7"></a><var>1.7</var>provisions; providing for homestead credit state refund; providing for aids to <br/>
<a id="pl.1.8"></a><var>1.8</var>local governments; providing city foreclosure and deed grants; changing and <br/>
<a id="pl.1.9"></a><var>1.9</var>providing property tax exemptions and credits; modifying job opportunity <br/>
<a id="pl.1.10"></a><var>1.10</var>building zone program; modifying green acre eligibility requirements; providing <br/>
<a id="pl.1.11"></a><var>1.11</var>aggregate resource preservation property tax law; providing seasonal recreational <br/>
<a id="pl.1.12"></a><var>1.12</var>property tax deferral program; modifying eligibility for senior citizen tax <br/>
<a id="pl.1.13"></a><var>1.13</var>deferral program; modifying transit taxing district; modifying levies, property <br/>
<a id="pl.1.14"></a><var>1.14</var>valuation procedures, homestead provisions, property tax classes, and class rates; <br/>
<a id="pl.1.15"></a><var>1.15</var>requiring levy limits under certain contingencies; providing for and modifying <br/>
<a id="pl.1.16"></a><var>1.16</var>sales tax exemptions; exempting two-wheel, motorized vehicles from wheelage <br/>
<a id="pl.1.17"></a><var>1.17</var>tax; abolishing the political contribution refund; providing exclusion from <br/>
<a id="pl.1.18"></a><var>1.18</var>income for certain veterans' retirement benefits; providing credits; providing <br/>
<a id="pl.1.19"></a><var>1.19</var>for additional financing of metropolitan area transit and paratransit capital <br/>
<a id="pl.1.20"></a><var>1.20</var>expenditures; authorizing issuance of certain obligations; modifying provision <br/>
<a id="pl.1.21"></a><var>1.21</var>governing bonding for county libraries; changing and authorizing powers, duties, <br/>
<a id="pl.1.22"></a><var>1.22</var>and requirements of local governments and authorities and state departments <br/>
<a id="pl.1.23"></a><var>1.23</var>or agencies; modifying, extending, and authorizing certain tax increment <br/>
<a id="pl.1.24"></a><var>1.24</var>financing districts; authorizing and modifying local sales taxes; prohibiting <br/>
<a id="pl.1.25"></a><var>1.25</var>the imposition of new local sales taxes; providing federal updates; changing <br/>
<a id="pl.1.26"></a><var>1.26</var>accelerated sales tax; creating Surplus Lines Association of Minnesota; creating <br/>
<a id="pl.1.27"></a><var>1.27</var>Iron Range revitalization account; changing provisions related to data practices <br/>
<a id="pl.1.28"></a><var>1.28</var>and debt collection; requiring studies; providing appointments; appropriating <br/>
<a id="pl.1.29"></a><var>1.29</var>money;amending Minnesota Statutes 2006, sections 13.51, subdivision 3; <br/>
<a id="pl.1.30"></a><var>1.30</var>13.585, subdivision 5; 16D.02, subdivisions 3, 6; 16D.04, subdivision 2, as <br/>
<a id="pl.1.31"></a><var>1.31</var>amended; 60A.196; 163.051, subdivision 1; 168.012, subdivision 1, by adding a <br/>
<a id="pl.1.32"></a><var>1.32</var>subdivision; 168.013, subdivision 1f; 168A.03, subdivision 1; 169.01, by adding <br/>
<a id="pl.1.33"></a><var>1.33</var>a subdivision; 169.781, subdivision 1; 216B.1612, by adding a subdivision; <br/>
<a id="pl.1.34"></a><var>1.34</var>216B.1646; 270A.03, subdivision 7; 270A.08, subdivision 1; 270B.15; 270C.33, <br/>
<a id="pl.1.35"></a><var>1.35</var>subdivision 5; 270C.56, subdivisions 1, as amended, 3; 270C.85, subdivision 2; <br/>
<a id="pl.1.36"></a><var>1.36</var>272.02, subdivisions 13, 20, 21, 27, 31, 38, 49, by adding subdivisions; 272.03, <br/>
<a id="pl.1.37"></a><var>1.37</var>subdivision 3, by adding a subdivision; 273.11, subdivisions 1, 1a, 8, 14a, 14b, <br/>
<a id="pl.1.38"></a><var>1.38</var>by adding subdivisions; 273.111, subdivisions 3, as amended, 4, 8, 9, 11, 11a, <br/>
<a id="pl.1.39"></a><var>1.39</var>by adding a subdivision; 273.121, as amended; 273.124, subdivisions 1, 6, 13, <br/>
<a id="pl.1.40"></a><var>1.40</var>as amended, 21; 273.128, subdivision 1, as amended; 273.13, subdivisions 23, <br/>
<a id="pl.1.41"></a><var>1.41</var>as amended, 24, 25, as amended, 33, 34, as added; 273.1384, subdivisions 1, 2; <br/>
<a id="pl.1.42"></a><var>1.42</var>274.01, subdivision 3; 274.014, subdivision 3; 274.14; 275.025, subdivisions <br/>
<a id="pl.2.1"></a><var>2.1</var>1, 2; 275.065, subdivisions 1c, 6, 8, 9, 10, by adding subdivisions; 275.70, <br/>
<a id="pl.2.2"></a><var>2.2</var>by adding a subdivision; 275.71; 276.04, subdivision 2, as amended; 282.08; <br/>
<a id="pl.2.3"></a><var>2.3</var>287.20, subdivisions 3a, 9, by adding a subdivision; 289A.12, by adding a <br/>
<a id="pl.2.4"></a><var>2.4</var>subdivision; 289A.18, subdivision 1, as amended; 289A.19, subdivision 2, by <br/>
<a id="pl.2.5"></a><var>2.5</var>adding a subdivision; 289A.20, subdivision 4, as amended; 289A.40, subdivision <br/>
<a id="pl.2.6"></a><var>2.6</var>1; 289A.50, subdivision 1; 289A.55, by adding a subdivision; 289A.60, <br/>
<a id="pl.2.7"></a><var>2.7</var>subdivision 15, as amended, by adding a subdivision; 290.01, subdivisions 6, 6b, <br/>
<a id="pl.2.8"></a><var>2.8</var>19a, as amended, 29, by adding a subdivision; 290.06, by adding subdivisions; <br/>
<a id="pl.2.9"></a><var>2.9</var>290.068, subdivisions 1, 3, by adding subdivisions; 290.07, subdivision 1; <br/>
<a id="pl.2.10"></a><var>2.10</var>290.091, subdivision 2, as amended; 290.21, subdivision 4; 290.92, subdivisions <br/>
<a id="pl.2.11"></a><var>2.11</var>1, 26, 31, as added; 290A.03, subdivision 13; 290A.04, subdivisions 2h, 3, 4, <br/>
<a id="pl.2.12"></a><var>2.12</var>by adding subdivisions; 290B.03, subdivision 1; 290B.04, subdivisions 1, 3, 4; <br/>
<a id="pl.2.13"></a><var>2.13</var>290B.05, subdivision 1; 290B.07; 291.03, subdivision 1; 295.50, subdivision 4; <br/>
<a id="pl.2.14"></a><var>2.14</var>295.52, subdivision 4, as amended; 295.53, subdivision 4a; 296A.07, subdivision <br/>
<a id="pl.2.15"></a><var>2.15</var>4; 296A.08, subdivision 3; 296A.16, subdivision 2; 297A.61, subdivisions 22, <br/>
<a id="pl.2.16"></a><var>2.16</var>29; 297A.665, as amended; 297A.67, subdivision 7, as amended; 297A.70, <br/>
<a id="pl.2.17"></a><var>2.17</var>subdivisions 2, 8; 297A.71, subdivision 23, by adding subdivisions; 297A.75; <br/>
<a id="pl.2.18"></a><var>2.18</var>297A.99, subdivision 1, as amended; 297A.995, subdivision 10, by adding <br/>
<a id="pl.2.19"></a><var>2.19</var>subdivisions; 297B.01, subdivision 7, by adding a subdivision; 297B.03; <br/>
<a id="pl.2.20"></a><var>2.20</var>297F.01, subdivision 8; 297F.09, subdivision 10, as amended; 297F.21, <br/>
<a id="pl.2.21"></a><var>2.21</var>subdivision 1; 297G.01, subdivision 9; 297G.09, subdivision 9, as amended; <br/>
<a id="pl.2.22"></a><var>2.22</var>297H.09; 297I.05, subdivision 12; 298.24, subdivision 1, as amended; 298.75, <br/>
<a id="pl.2.23"></a><var>2.23</var>subdivisions 1, 2, 6, 7; 365A.095; 383A.80, subdivision 4; 383A.81, subdivisions <br/>
<a id="pl.2.24"></a><var>2.24</var>1, 2; 383B.80, subdivision 4; 383E.20; 429.101, subdivision 1; 469.033, <br/>
<a id="pl.2.25"></a><var>2.25</var>subdivision 6; 469.040, subdivision 4; 469.174, subdivision 10b; 469.177, <br/>
<a id="pl.2.26"></a><var>2.26</var>subdivision 1c, by adding a subdivision; 469.1813, subdivision 8; 469.312, by <br/>
<a id="pl.2.27"></a><var>2.27</var>adding a subdivision; 469.319; 469.3201; 473.39, by adding a subdivision; <br/>
<a id="pl.2.28"></a><var>2.28</var>473.446, subdivisions 2, 8; 477A.011, subdivisions 34, 36, as amended, by <br/>
<a id="pl.2.29"></a><var>2.29</var>adding subdivisions; 477A.0124, subdivision 5; 477A.013, subdivisions 1, 8, <br/>
<a id="pl.2.30"></a><var>2.30</var>as amended, 9, as amended; 477A.03; Minnesota Statutes 2007 Supplement, <br/>
<a id="pl.2.31"></a><var>2.31</var>sections 115A.1314, subdivision 2; 268.19, subdivision 1; 273.1231, subdivision <br/>
<a id="pl.2.32"></a><var>2.32</var>7, by adding a subdivision; 273.1232, subdivision 1; 273.1233, subdivisions 1, <br/>
<a id="pl.2.33"></a><var>2.33</var>3; 273.1234; 273.1235, subdivisions 1, 3; 273.124, subdivision 14; 273.1393; <br/>
<a id="pl.2.34"></a><var>2.34</var>275.065, subdivisions 1, 1a, 3; 290.01, subdivision 19b, as amended; 298.227; <br/>
<a id="pl.2.35"></a><var>2.35</var>Laws 1991, chapter 291, article 8, section 27, subdivisions 3, as amended, 4, as <br/>
<a id="pl.2.36"></a><var>2.36</var>amended; Laws 1995, chapter 264, article 5, section 46, subdivision 2; Laws <br/>
<a id="pl.2.37"></a><var>2.37</var>2003, chapter 127, article 10, section 31, subdivision 1; Laws 2006, chapter 259, <br/>
<a id="pl.2.38"></a><var>2.38</var>article 10, section 14, subdivision 1; Laws 2008, chapter 154, article 2, section <br/>
<a id="pl.2.39"></a><var>2.39</var>11; article 3, section 7; article 9, sections 23; 24; proposing coding for new law <br/>
<a id="pl.2.40"></a><var>2.40</var>in Minnesota Statutes, chapters 60A; 116J; 169; 216F; 273; 298; 373; 383C; <br/>
<a id="pl.2.41"></a><var>2.41</var>383D; 383E; 469; proposing coding for new law as Minnesota Statutes, chapter <br/>
<a id="pl.2.42"></a><var>2.42</var>290D; repealing Minnesota Statutes 2006, sections 10A.322, subdivision 4; <br/>
<a id="pl.2.43"></a><var>2.43</var>273.11, subdivision 14; 273.111, subdivision 6; 290.06, subdivision 23; 290.191, <br/>
<a id="pl.2.44"></a><var>2.44</var>subdivision 4; 290A.04, subdivisions 2, 2b; 473.4461; 477A.014, subdivision 5; <br/>
<a id="pl.2.45"></a><var>2.45</var>Minnesota Statutes 2007 Supplement, section 477A.014, subdivision 4; Laws <br/>
<a id="pl.2.46"></a><var>2.46</var>2005, First Special Session chapter 3, article 5, section 24; Minnesota Rules, <br/>
<a id="pl.2.47"></a><var>2.47</var>parts 8031.0100, subpart 3; 8093.2100.<br/>
<a id="pl.2.48"></a><var>2.48</var>May 18, 2008<br/>
<a id="pl.2.49"></a><var>2.49</var>The Honorable Margaret Anderson Kelliher<br/>
<a id="pl.2.50"></a><var>2.50</var>Speaker of the House of Representatives<br/>
<a id="pl.2.51"></a><var>2.51</var>The Honorable James P. Metzen<br/>
<a id="pl.2.52"></a><var>2.52</var>President of the Senate<br/>
<a id="pl.2.53"></a><var>2.53</var>We, the undersigned conferees for H. F. No. 3149 report that we have agreed upon <br/>
<a id="pl.2.54"></a><var>2.54</var>the items in dispute and recommend as follows:<br/>
<a id="pl.3.1"></a><var>3.1</var>That the Senate recede from its amendments and that H. F. No. 3149 be further <br/>
<a id="pl.3.2"></a><var>3.2</var>amended as follows:<br/>
<a id="pl.3.3"></a><var>3.3</var>Delete everything after the enacting clause and insert:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.3.6"></a><var>3.6</var>    Section 1. Minnesota Statutes 2006, section 290A.04, subdivision 2, is amended to <br/>
<a id="pl.3.7"></a><var>3.7</var>read:<br/>
<a id="pl.3.8"></a><var>3.8</var>    Subd. 2. <b>Homeowners.</b> A claimant whose property taxes payable are in excess <br/>
<a id="pl.3.9"></a><var>3.9</var>of the percentage of the household income stated below shall pay an amount equal to <br/>
<a id="pl.3.10"></a><var>3.10</var>the percent of income shown for the appropriate household income level along with the <br/>
<a id="pl.3.11"></a><var>3.11</var>percent to be paid by the claimant of the remaining amount of property taxes payable. <br/>
<a id="pl.3.12"></a><var>3.12</var>The state refund equals the amount of property taxes payable that remain, up to the state <br/>
<a id="pl.3.13"></a><var>3.13</var>refund amount shown below.<br/>
<table>
<col width="50px"/>
<col width="18"/>
<col width="15.5"/>
<col width="15.5"/>
<col width="15.5"/>
<tr>
<td><a id="pl.3.14"></a><var>3.14</var><br/>
<a id="pl.3.15"></a><var>3.15</var><br/>
</td>
<td align="center" valign="bottom">Household Income<br/>
</td>
<td align="center" valign="bottom">Percent of Income<br/>
</td>
<td align="center" valign="bottom">Percent Paid by <br/>
                  		Claimant<br/>
</td>
<td align="center" valign="bottom">Maximum State <br/>
                  		Refund<br/>
</td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="18"/>
<col width="15.5"/>
<col width="15.5"/>
<col width="15.5"/>
<tr>
<td><a id="pl.3.16"></a><var>3.16</var><br/>
</td>
<td align="right" valign="bottom">$0 to 1,189<br/>
</td>
<td align="right" valign="bottom">1.0 percent<br/>
</td>
<td align="right" valign="bottom">15 percent<br/>
</td>
<td align="right" valign="bottom">$1,450$1,850<br/>
</td>
</tr>
<tr>
<td><a id="pl.3.17"></a><var>3.17</var><br/>
</td>
<td align="right" valign="bottom">1,190 to 2,379<br/>
</td>
<td align="right" valign="bottom">1.1 percent<br/>
</td>
<td align="right" valign="bottom">15 percent<br/>
</td>
<td align="right" valign="bottom">$1,450$1,850<br/>
</td>
</tr>
<tr>
<td><a id="pl.3.18"></a><var>3.18</var><br/>
</td>
<td align="right" valign="bottom">2,380 to 3,589<br/>
</td>
<td align="right" valign="bottom">1.2 percent<br/>
</td>
<td align="right" valign="bottom">15 percent<br/>
</td>
<td align="right" valign="bottom">$1,410$1,800<br/>
</td>
</tr>
<tr>
<td><a id="pl.3.19"></a><var>3.19</var><br/>
</td>
<td align="right" valign="bottom">3,590 to 4,789<br/>
</td>
<td align="right" valign="bottom">1.3 percent<br/>
</td>
<td align="right" valign="bottom">20 percent<br/>
</td>
<td align="right" valign="bottom">$1,410$1,800<br/>
</td>
</tr>
<tr>
<td><a id="pl.3.20"></a><var>3.20</var><br/>
</td>
<td align="right" valign="bottom">4,790 to 5,979<br/>
</td>
<td align="right" valign="bottom">1.4 percent<br/>
</td>
<td align="right" valign="bottom">20 percent<br/>
</td>
<td align="right" valign="bottom">$1,360$1,730<br/>
</td>
</tr>
<tr>
<td><a id="pl.3.21"></a><var>3.21</var><br/>
</td>
<td align="right" valign="bottom">5,980 to 8,369<br/>
</td>
<td align="right" valign="bottom">1.5 percent<br/>
</td>
<td align="right" valign="bottom">20 percent<br/>
</td>
<td align="right" valign="bottom">$1,360$1,730<br/>
</td>
</tr>
<tr>
<td><a id="pl.3.22"></a><var>3.22</var><br/>
</td>
<td align="right" valign="bottom">8,370 to 9,559<br/>
</td>
<td align="right" valign="bottom">1.6 percent<br/>
</td>
<td align="right" valign="bottom">25 percent<br/>
</td>
<td align="right" valign="bottom">$1,310$1,670<br/>
</td>
</tr>
<tr>
<td><a id="pl.3.23"></a><var>3.23</var><br/>
</td>
<td align="right" valign="bottom">9,560 to 10,759<br/>
</td>
<td align="right" valign="bottom">1.7 percent<br/>
</td>
<td align="right" valign="bottom">25 percent<br/>
</td>
<td align="right" valign="bottom">$1,310$1,670<br/>
</td>
</tr>
<tr>
<td><a id="pl.3.24"></a><var>3.24</var><br/>
</td>
<td align="right" valign="bottom">10,760 to 11,949<br/>
</td>
<td align="right" valign="bottom">1.8 percent<br/>
</td>
<td align="right" valign="bottom">25 percent<br/>
</td>
<td align="right" valign="bottom">$1,260$1,610<br/>
</td>
</tr>
<tr>
<td><a id="pl.3.25"></a><var>3.25</var><br/>
</td>
<td align="right" valign="bottom">11,950 to 13,139<br/>
</td>
<td align="right" valign="bottom">1.9 percent<br/>
</td>
<td align="right" valign="bottom">30 percent<br/>
</td>
<td align="right" valign="bottom">$1,260$1,610<br/>
</td>
</tr>
<tr>
<td><a id="pl.3.26"></a><var>3.26</var><br/>
</td>
<td align="right" valign="bottom">13,140 to 14,349<br/>
</td>
<td align="right" valign="bottom">2.0 percent<br/>
</td>
<td align="right" valign="bottom">30 percent<br/>
</td>
<td align="right" valign="bottom">$1,210$1,540<br/>
</td>
</tr>
<tr>
<td><a id="pl.3.27"></a><var>3.27</var><br/>
</td>
<td align="right" valign="bottom">14,350 to 16,739<br/>
</td>
<td align="right" valign="bottom">2.1 percent<br/>
</td>
<td align="right" valign="bottom">30 percent<br/>
</td>
<td align="right" valign="bottom">$1,210$1,540<br/>
</td>
</tr>
<tr>
<td><a id="pl.3.28"></a><var>3.28</var><br/>
</td>
<td align="right" valign="bottom">16,740 to 17,929<br/>
</td>
<td align="right" valign="bottom">2.2 percent<br/>
</td>
<td align="right" valign="bottom">35 percent<br/>
</td>
<td align="right" valign="bottom">$1,160$1,480<br/>
</td>
</tr>
<tr>
<td><a id="pl.3.29"></a><var>3.29</var><br/>
</td>
<td align="right" valign="bottom">17,930 to 19,119<br/>
</td>
<td align="right" valign="bottom">2.3 percent<br/>
</td>
<td align="right" valign="bottom">35 percent<br/>
</td>
<td align="right" valign="bottom">$1,160$1,480<br/>
</td>
</tr>
<tr>
<td><a id="pl.3.30"></a><var>3.30</var><br/>
</td>
<td align="right" valign="bottom">19,120 to 20,319<br/>
</td>
<td align="right" valign="bottom">2.4 percent<br/>
</td>
<td align="right" valign="bottom">35 percent<br/>
</td>
<td align="right" valign="bottom">$1,110$1,420<br/>
</td>
</tr>
<tr>
<td><a id="pl.3.31"></a><var>3.31</var><br/>
</td>
<td align="right" valign="bottom">20,320 to 25,099<br/>
</td>
<td align="right" valign="bottom">2.5 percent<br/>
</td>
<td align="right" valign="bottom">40 percent<br/>
</td>
<td align="right" valign="bottom">$1,110$1,420<br/>
</td>
</tr>
<tr>
<td><a id="pl.4.1"></a><var>4.1</var><br/>
</td>
<td align="right" valign="bottom">25,100 to 28,679<br/>
</td>
<td align="right" valign="bottom">2.6 percent<br/>
</td>
<td align="right" valign="bottom">40 percent<br/>
</td>
<td align="right" valign="bottom">$1,070$1,360<br/>
</td>
</tr>
<tr>
<td><a id="pl.4.2"></a><var>4.2</var><br/>
</td>
<td align="right" valign="bottom">28,680 to 35,849<br/>
</td>
<td align="right" valign="bottom">2.7 percent<br/>
</td>
<td align="right" valign="bottom">40 percent<br/>
</td>
<td align="right" valign="bottom">$1,070$1,360<br/>
</td>
</tr>
<tr>
<td><a id="pl.4.3"></a><var>4.3</var><br/>
</td>
<td align="right" valign="bottom">35,850 to 41,819<br/>
</td>
<td align="right" valign="bottom">2.8 percent<br/>
</td>
<td align="right" valign="bottom">45 percent<br/>
</td>
<td align="right" valign="bottom">$ 970$1,240 <br/>
</td>
</tr>
<tr>
<td><a id="pl.4.4"></a><var>4.4</var><br/>
</td>
<td align="right" valign="bottom">41,820 to 47,799<br/>
</td>
<td align="right" valign="bottom">3.0 percent<br/>
</td>
<td align="right" valign="bottom">45 percent<br/>
</td>
<td align="right" valign="bottom">$ 970$1,240 <br/>
</td>
</tr>
<tr>
<td><a id="pl.4.5"></a><var>4.5</var><br/>
</td>
<td align="right" valign="bottom">47,800 to 53,779<br/>
</td>
<td align="right" valign="bottom">3.2 percent<br/>
</td>
<td align="right" valign="bottom">45 percent<br/>
</td>
<td align="right" valign="bottom">$ 870$1,110 <br/>
</td>
</tr>
<tr>
<td><a id="pl.4.6"></a><var>4.6</var><br/>
</td>
<td align="right" valign="bottom">53,780 to 59,749<br/>
</td>
<td align="right" valign="bottom">3.5 percent<br/>
</td>
<td align="right" valign="bottom">50 percent<br/>
</td>
<td align="right" valign="bottom">$ 780$990 <br/>
</td>
</tr>
<tr>
<td><a id="pl.4.7"></a><var>4.7</var><br/>
</td>
<td align="right" valign="bottom">59,750 to 65,729<br/>
</td>
<td align="right" valign="bottom">4.03.5 percent<br/>
</td>
<td align="right" valign="bottom">50 percent<br/>
</td>
<td align="right" valign="bottom">$ 680 $870<br/>
</td>
</tr>
<tr>
<td><a id="pl.4.8"></a><var>4.8</var><br/>
</td>
<td align="right" valign="bottom">65,730 to 69,319<br/>
</td>
<td align="right" valign="bottom">4.03.5 percent<br/>
</td>
<td align="right" valign="bottom">50 percent<br/>
</td>
<td align="right" valign="bottom">$ 580 $740<br/>
</td>
</tr>
<tr>
<td><a id="pl.4.9"></a><var>4.9</var><br/>
</td>
<td align="right" valign="bottom">69,320 to 71,719<br/>
</td>
<td align="right" valign="bottom">4.03.5 percent<br/>
</td>
<td align="right" valign="bottom">50 percent<br/>
</td>
<td align="right" valign="bottom">$ 480$610 <br/>
</td>
</tr>
<tr>
<td><a id="pl.4.10"></a><var>4.10</var><br/>
</td>
<td align="right" valign="bottom">71,720 to 74,619<br/>
</td>
<td align="right" valign="bottom">4.03.5 percent<br/>
</td>
<td align="right" valign="bottom">50 percent<br/>
</td>
<td align="right" valign="bottom">$ 390$500 <br/>
</td>
</tr>
<tr>
<td><a id="pl.4.11"></a><var>4.11</var><br/>
</td>
<td align="right" valign="bottom">74,620 to 77,519<br/>
</td>
<td align="right" valign="bottom">4.03.5 percent<br/>
</td>
<td align="right" valign="bottom">50 percent<br/>
</td>
<td align="right" valign="bottom">$ 290$370 <br/>
</td>
</tr>
</table><a id="pl.4.12"></a><var>4.12</var>    The payment made to a claimant shall be the amount of the state refund calculated <br/>
<a id="pl.4.13"></a><var>4.13</var>under this subdivision. No payment is allowed if the claimant's household income is <br/>
<a id="pl.4.14"></a><var>4.14</var>$77,520 or more.<br/>
<a id="pl.4.15"></a><var>4.15</var><b>EFFECTIVE DATE.</b>This section is effective beginning with refunds based on <br/>
<a id="pl.4.16"></a><var>4.16</var>property taxes payable in 2009.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.4.17"></a><var>4.17</var>    Sec. 2. <b>TAXPAYER ASSISTANCE SERVICES; PROPERTY TAX REFUND.</b><br/>
<a id="pl.4.18"></a><var>4.18</var>    (a) $100,000 in fiscal year 2009 is appropriated from the general fund to the <br/>
<a id="pl.4.19"></a><var>4.19</var>commissioner of revenue to make grants to one or more nonprofit organizations, qualifying <br/>
<a id="pl.4.20"></a><var>4.20</var>under section 501(c)(3) of the Internal Revenue Code of 1986, to coordinate, facilitate, <br/>
<a id="pl.4.21"></a><var>4.21</var>encourage, and aid in the provision of taxpayer assistance services. The commissioner <br/>
<a id="pl.4.22"></a><var>4.22</var>must award grants under this section so as to increase the availability of taxpayer <br/>
<a id="pl.4.23"></a><var>4.23</var>assistance services after April 15, to assist homeowners in filing claims for the property <br/>
<a id="pl.4.24"></a><var>4.24</var>tax refund, and to increase participation in the program. This appropriation is onetime and <br/>
<a id="pl.4.25"></a><var>4.25</var>is not added to the agency's base budget.<br/>
<a id="pl.4.26"></a><var>4.26</var>    (b) "Taxpayer assistance services" means accounting and tax preparation services <br/>
<a id="pl.4.27"></a><var>4.27</var>provided by volunteers to low-income and disadvantaged Minnesota residents to help <br/>
<a id="pl.4.28"></a><var>4.28</var>them file federal and state income tax returns, Minnesota property tax refund claims, and <br/>
<a id="pl.4.29"></a><var>4.29</var>may include provision of personal representation before the Department of Revenue and <br/>
<a id="pl.4.30"></a><var>4.30</var>Internal Revenue Service.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.5.3"></a><var>5.3</var>    Section 1. Minnesota Statutes 2006, section 477A.011, subdivision 34, is amended to <br/>
<a id="pl.5.4"></a><var>5.4</var>read:<br/>
<a id="pl.5.5"></a><var>5.5</var>    Subd. 34. <b>City revenue need.</b> (a) For a city with a population equal to or greater <br/>
<a id="pl.5.6"></a><var>5.6</var>than 2,500, "city revenue need" is the sum of (1) 5.0734098 times the pre-1940 housing <br/>
<a id="pl.5.7"></a><var>5.7</var>percentage; plus (2) 19.141678 times the population decline percentage; plus (3) <br/>
<a id="pl.5.8"></a><var>5.8</var>2504.06334 times the road accidents factor; plus (4) 
         <statute_ref>355.0547</statute_ref>; minus (5) the metropolitan <br/>
<a id="pl.5.9"></a><var>5.9</var>area factor; minus (6) 49.10638 times the household size.<br/>
<a id="pl.5.10"></a><var>5.10</var>    (b) For a city with a population less than 2,500, "city revenue need" is the sum of <br/>
<a id="pl.5.11"></a><var>5.11</var>(1) 
         <statute_ref>2.387</statute_ref> times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial <br/>
<a id="pl.5.12"></a><var>5.12</var>industrial percentage; plus (3) 3.16042 times the population decline percentage; plus (4) <br/>
<statute_ref><a id="pl.5.13"></a><var>5.13</var>1.206
         </statute_ref> times the transformed population; minus (5) 
         <statute_ref>62.772</statute_ref>.<br/>
<a id="pl.5.14"></a><var>5.14</var>    (c) For a city with a population of 2,500 or more and a population in one of the most <br/>
<a id="pl.5.15"></a><var>5.15</var>recently available five years that was less than 2,500, "city revenue need" is the sum of (1) <br/>
<a id="pl.5.16"></a><var>5.16</var>its city revenue need calculated under paragraph (a) multiplied by its transition factor; <br/>
<a id="pl.5.17"></a><var>5.17</var>plus (2) its city revenue need calculated under the formula in paragraph (b) multiplied <br/>
<a id="pl.5.18"></a><var>5.18</var>by the difference between one and its transition factor. For purposes of this paragraph, a <br/>
<a id="pl.5.19"></a><var>5.19</var>city's "transition factor" is equal to 0.2 multiplied by the number of years that the city's <br/>
<a id="pl.5.20"></a><var>5.20</var>population estimate has been 2,500 or more. This provision only applies for aids payable <br/>
<a id="pl.5.21"></a><var>5.21</var>in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500. It <br/>
<a id="pl.5.22"></a><var>5.22</var>applies to any city for aids payable in 2009 and thereafter. The city revenue need under <br/>
<a id="pl.5.23"></a><var>5.23</var>this paragraph may not be less than 285.<br/>
<a id="pl.5.24"></a><var>5.24</var>    (d) The city revenue need cannot be less than zero.<br/>
<a id="pl.5.25"></a><var>5.25</var>    (e) For calendar year 2005 and subsequent years, the city revenue need for a city, <br/>
<a id="pl.5.26"></a><var>5.26</var>as determined in paragraphs (a) to (d), is multiplied by the ratio of the annual implicit <br/>
<a id="pl.5.27"></a><var>5.27</var>price deflator for government consumption expenditures and gross investment for state <br/>
<a id="pl.5.28"></a><var>5.28</var>and local governments as prepared by the United States Department of Commerce, for <br/>
<a id="pl.5.29"></a><var>5.29</var>the most recently available year to the 2003 implicit price deflator for state and local <br/>
<a id="pl.5.30"></a><var>5.30</var>government purchases.<br/>
<a id="pl.5.31"></a><var>5.31</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.5.32"></a><var>5.32</var>2009 and thereafter.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.5.33"></a><var>5.33</var>    Sec. 2. Minnesota Statutes 2006, section 477A.011, subdivision 36, as amended by <br/>
<a id="pl.5.34"></a><var>5.34</var>Laws 2008, chapter 154, article 1, section 1, is amended to read:<br/>
<a id="pl.6.1"></a><var>6.1</var>    Subd. 36.  <b>City aid base.</b> (a) Except as otherwise provided in this subdivision, <br/>
<a id="pl.6.2"></a><var>6.2</var>"city aid base" is zero. <br/>
<a id="pl.6.3"></a><var>6.3</var>    (b) The city aid base for any city with a population less than 500 is increased by <br/>
<a id="pl.6.4"></a><var>6.4</var>$40,000 for aids payable in calendar year 1995 and thereafter, and the maximum amount <br/>
<a id="pl.6.5"></a><var>6.5</var>of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, paragraph (c), is also <br/>
<a id="pl.6.6"></a><var>6.6</var>increased by $40,000 for aids payable in calendar year 1995 only, provided that: <br/>
<a id="pl.6.7"></a><var>6.7</var>    (i) the average total tax capacity rate for taxes payable in 1995 exceeds 200 percent; <br/>
<a id="pl.6.8"></a><var>6.8</var>    (ii) the city portion of the tax capacity rate exceeds 100 percent; and <br/>
<a id="pl.6.9"></a><var>6.9</var>    (iii) its city aid base is less than $60 per capita. <br/>
<a id="pl.6.10"></a><var>6.10</var>    (c) The city aid base for a city is increased by $20,000 in 1998 and thereafter and <br/>
<a id="pl.6.11"></a><var>6.11</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.6.12"></a><var>6.12</var>paragraph (c), is also increased by $20,000 in calendar year 1998 only, provided that: <br/>
<a id="pl.6.13"></a><var>6.13</var>    (i) the city has a population in 1994 of 2,500 or more; <br/>
<a id="pl.6.14"></a><var>6.14</var>    (ii) the city is located in a county, outside of the metropolitan area, which contains a <br/>
<a id="pl.6.15"></a><var>6.15</var>city of the first class; <br/>
<a id="pl.6.16"></a><var>6.16</var>    (iii) the city's net tax capacity used in calculating its 1996 aid under section <br/>
<statute_ref><a id="pl.6.17"></a><var>6.17</var>477A.013
         </statute_ref> is less than $400 per capita; and <br/>
<a id="pl.6.18"></a><var>6.18</var>    (iv) at least four percent of the total net tax capacity, for taxes payable in 1996, of <br/>
<a id="pl.6.19"></a><var>6.19</var>property located in the city is classified as railroad property. <br/>
<a id="pl.6.20"></a><var>6.20</var>    (d) The city aid base for a city is increased by $200,000 in 1999 and thereafter and <br/>
<a id="pl.6.21"></a><var>6.21</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.6.22"></a><var>6.22</var>paragraph (c), is also increased by $200,000 in calendar year 1999 only, provided that: <br/>
<a id="pl.6.23"></a><var>6.23</var>    (i) the city was incorporated as a statutory city after December 1, 1993; <br/>
<a id="pl.6.24"></a><var>6.24</var>    (ii) its city aid base does not exceed $5,600; and <br/>
<a id="pl.6.25"></a><var>6.25</var>    (iii) the city had a population in 1996 of 5,000 or more. <br/>
<a id="pl.6.26"></a><var>6.26</var>    (e) The city aid base for a city is increased by $450,000 in 1999 to 2008 and the <br/>
<a id="pl.6.27"></a><var>6.27</var>maximum amount of total aid it may receive under section 
<statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.6.28"></a><var>6.28</var>paragraph (c), is also increased by $450,000 in calendar year 1999 only, provided that: <br/>
<a id="pl.6.29"></a><var>6.29</var>    (i) the city had a population in 1996 of at least 50,000; <br/>
<a id="pl.6.30"></a><var>6.30</var>    (ii) its population had increased by at least 40 percent in the ten-year period ending <br/>
<a id="pl.6.31"></a><var>6.31</var>in 1996; and <br/>
<a id="pl.6.32"></a><var>6.32</var>    (iii) its city's net tax capacity for aids payable in 1998 is less than $700 per capita. <br/>
<a id="pl.6.33"></a><var>6.33</var>    (f) (e) The city aid base for a city is increased by $150,000 for aids payable in <br/>
<a id="pl.6.34"></a><var>6.34</var>2000 and thereafter, and the maximum amount of total aid it may receive under section <br/>
<statute_ref><a id="pl.6.35"></a><var>6.35</var>477A.013, subdivision 9
         </statute_ref>, paragraph (c), is also increased by $150,000 in calendar year <br/>
<a id="pl.6.36"></a><var>6.36</var>2000 only, provided that: <br/>
<a id="pl.7.1"></a><var>7.1</var>    (1) the city has a population that is greater than 1,000 and less than 2,500; <br/>
<a id="pl.7.2"></a><var>7.2</var>    (2) its commercial and industrial percentage for aids payable in 1999 is greater <br/>
<a id="pl.7.3"></a><var>7.3</var>than 45 percent; and <br/>
<a id="pl.7.4"></a><var>7.4</var>    (3) the total market value of all commercial and industrial property in the city <br/>
<a id="pl.7.5"></a><var>7.5</var>for assessment year 1999 is at least 15 percent less than the total market value of all <br/>
<a id="pl.7.6"></a><var>7.6</var>commercial and industrial property in the city for assessment year 1998. <br/>
<a id="pl.7.7"></a><var>7.7</var>    (g) (f) The city aid base for a city is increased by $200,000 in 2000 and thereafter, <br/>
<a id="pl.7.8"></a><var>7.8</var>and the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision <br/>
<a id="pl.7.9"></a><var>7.9</var>9
         </statute_ref>, paragraph (c), is also increased by $200,000 in calendar year 2000 only, provided that: <br/>
<a id="pl.7.10"></a><var>7.10</var>    (1) the city had a population in 1997 of 2,500 or more; <br/>
<a id="pl.7.11"></a><var>7.11</var>    (2) the net tax capacity of the city used in calculating its 1999 aid under section <br/>
<statute_ref><a id="pl.7.12"></a><var>7.12</var>477A.013
         </statute_ref> is less than $650 per capita; <br/>
<a id="pl.7.13"></a><var>7.13</var>    (3) the pre-1940 housing percentage of the city used in calculating 1999 aid under <br/>
<a id="pl.7.14"></a><var>7.14</var>section 
         <statute_ref>477A.013</statute_ref> is greater than 12 percent; <br/>
<a id="pl.7.15"></a><var>7.15</var>    (4) the 1999 local government aid of the city under section 
         <statute_ref>477A.013</statute_ref> is less than <br/>
<a id="pl.7.16"></a><var>7.16</var>20 percent of the amount that the formula aid of the city would have been if the need <br/>
<a id="pl.7.17"></a><var>7.17</var>increase percentage was 100 percent; and <br/>
<a id="pl.7.18"></a><var>7.18</var>    (5) the city aid base of the city used in calculating aid under section 
         <statute_ref>477A.013</statute_ref> <br/>
<a id="pl.7.19"></a><var>7.19</var>is less than $7 per capita. <br/>
<a id="pl.7.20"></a><var>7.20</var>    (h) (g) The city aid base for a city is increased by $102,000 in 2000 and thereafter, <br/>
<a id="pl.7.21"></a><var>7.21</var>and the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision <br/>
<a id="pl.7.22"></a><var>7.22</var>9
         </statute_ref>, paragraph (c), is also increased by $102,000 in calendar year 2000 only, provided that: <br/>
<a id="pl.7.23"></a><var>7.23</var>    (1) the city has a population in 1997 of 2,000 or more; <br/>
<a id="pl.7.24"></a><var>7.24</var>    (2) the net tax capacity of the city used in calculating its 1999 aid under section <br/>
<statute_ref><a id="pl.7.25"></a><var>7.25</var>477A.013
         </statute_ref> is less than $455 per capita; <br/>
<a id="pl.7.26"></a><var>7.26</var>    (3) the net levy of the city used in calculating 1999 aid under section 
         <statute_ref>477A.013</statute_ref> is <br/>
<a id="pl.7.27"></a><var>7.27</var>greater than $195 per capita; and <br/>
<a id="pl.7.28"></a><var>7.28</var>    (4) the 1999 local government aid of the city under section 
         <statute_ref>477A.013</statute_ref> is less than <br/>
<a id="pl.7.29"></a><var>7.29</var>38 percent of the amount that the formula aid of the city would have been if the need <br/>
<a id="pl.7.30"></a><var>7.30</var>increase percentage was 100 percent. <br/>
<a id="pl.7.31"></a><var>7.31</var>    (i) (h) The city aid base for a city is increased by $32,000 in 2001 and thereafter, and <br/>
<a id="pl.7.32"></a><var>7.32</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.7.33"></a><var>7.33</var>paragraph (c), is also increased by $32,000 in calendar year 2001 only, provided that: <br/>
<a id="pl.7.34"></a><var>7.34</var>    (1) the city has a population in 1998 that is greater than 200 but less than 500; <br/>
<a id="pl.7.35"></a><var>7.35</var>    (2) the city's revenue need used in calculating aids payable in 2000 was greater <br/>
<a id="pl.7.36"></a><var>7.36</var>than $200 per capita; <br/>
<a id="pl.8.1"></a><var>8.1</var>    (3) the city net tax capacity for the city used in calculating aids available in 2000 <br/>
<a id="pl.8.2"></a><var>8.2</var>was equal to or less than $200 per capita; <br/>
<a id="pl.8.3"></a><var>8.3</var>    (4) the city aid base of the city used in calculating aid under section 
         <statute_ref>477A.013</statute_ref> <br/>
<a id="pl.8.4"></a><var>8.4</var>is less than $65 per capita; and <br/>
<a id="pl.8.5"></a><var>8.5</var>    (5) the city's formula aid for aids payable in 2000 was greater than zero. <br/>
<a id="pl.8.6"></a><var>8.6</var>    (j) (i) The city aid base for a city is increased by $7,200 in 2001 and thereafter, and <br/>
<a id="pl.8.7"></a><var>8.7</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.8.8"></a><var>8.8</var>paragraph (c), is also increased by $7,200 in calendar year 2001 only, provided that: <br/>
<a id="pl.8.9"></a><var>8.9</var>    (1) the city had a population in 1998 that is greater than 200 but less than 500; <br/>
<a id="pl.8.10"></a><var>8.10</var>    (2) the city's commercial industrial percentage used in calculating aids payable in <br/>
<a id="pl.8.11"></a><var>8.11</var>2000 was less than ten percent; <br/>
<a id="pl.8.12"></a><var>8.12</var>    (3) more than 25 percent of the city's population was 60 years old or older according <br/>
<a id="pl.8.13"></a><var>8.13</var>to the 1990 census; <br/>
<a id="pl.8.14"></a><var>8.14</var>    (4) the city aid base of the city used in calculating aid under section 
         <statute_ref>477A.013</statute_ref> <br/>
<a id="pl.8.15"></a><var>8.15</var>is less than $15 per capita; and <br/>
<a id="pl.8.16"></a><var>8.16</var>    (5) the city's formula aid for aids payable in 2000 was greater than zero. <br/>
<a id="pl.8.17"></a><var>8.17</var>    (k) (j) The city aid base for a city is increased by $45,000 in 2001 and thereafter <br/>
<a id="pl.8.18"></a><var>8.18</var>and by an additional $50,000 in calendar years 2002 to 2011, and the maximum amount <br/>
<a id="pl.8.19"></a><var>8.19</var>of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, paragraph (c), is also <br/>
<a id="pl.8.20"></a><var>8.20</var>increased by $45,000 in calendar year 2001 only, and by $50,000 in calendar year 2002 <br/>
<a id="pl.8.21"></a><var>8.21</var>only, provided that: <br/>
<a id="pl.8.22"></a><var>8.22</var>    (1) the net tax capacity of the city used in calculating its 2000 aid under section <br/>
<statute_ref><a id="pl.8.23"></a><var>8.23</var>477A.013
         </statute_ref> is less than $810 per capita; <br/>
<a id="pl.8.24"></a><var>8.24</var>    (2) the population of the city declined more than two percent between 1988 and 1998; <br/>
<a id="pl.8.25"></a><var>8.25</var>    (3) the net levy of the city used in calculating 2000 aid under section 
         <statute_ref>477A.013</statute_ref> is <br/>
<a id="pl.8.26"></a><var>8.26</var>greater than $240 per capita; and <br/>
<a id="pl.8.27"></a><var>8.27</var>    (4) the city received less than $36 per capita in aid under section 
         <statute_ref>477A.013, <br/>
<a id="pl.8.28"></a><var>8.28</var>subdivision 9
         </statute_ref>, for aids payable in 2000. <br/>
<a id="pl.8.29"></a><var>8.29</var>    (l) (k) The city aid base for a city with a population of 10,000 or more which is <br/>
<a id="pl.8.30"></a><var>8.30</var>located outside of the seven-county metropolitan area is increased in 2002 and thereafter, <br/>
<a id="pl.8.31"></a><var>8.31</var>and the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision <br/>
<a id="pl.8.32"></a><var>8.32</var>9
         </statute_ref>, paragraph (b) or (c), is also increased in calendar year 2002 only, by an amount equal to <br/>
<a id="pl.8.33"></a><var>8.33</var>the lesser of: <br/>
<a id="pl.8.34"></a><var>8.34</var>    (1)(i) the total population of the city, as determined by the United States Bureau of <br/>
<a id="pl.8.35"></a><var>8.35</var>the Census, in the 2000 census, (ii) minus 5,000, (iii) times 60; or <br/>
<a id="pl.8.36"></a><var>8.36</var>    (2) $2,500,000. <br/>
<a id="pl.9.1"></a><var>9.1</var>    (m) (l) The city aid base is increased by $50,000 in 2002 and thereafter, and the <br/>
<a id="pl.9.2"></a><var>9.2</var>maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.9.3"></a><var>9.3</var>paragraph (c), is also increased by $50,000 in calendar year 2002 only, provided that: <br/>
<a id="pl.9.4"></a><var>9.4</var>    (1) the city is located in the seven-county metropolitan area; <br/>
<a id="pl.9.5"></a><var>9.5</var>    (2) its population in 2000 is between 10,000 and 20,000; and <br/>
<a id="pl.9.6"></a><var>9.6</var>    (3) its commercial industrial percentage, as calculated for city aid payable in 2001, <br/>
<a id="pl.9.7"></a><var>9.7</var>was greater than 25 percent. <br/>
<a id="pl.9.8"></a><var>9.8</var>    (n) (m) The city aid base for a city is increased by $150,000 in calendar years 2002 <br/>
<a id="pl.9.9"></a><var>9.9</var>to 2011 and by an additional $75,000 in calendar years 2009 to 2014 and the maximum <br/>
<a id="pl.9.10"></a><var>9.10</var>amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, paragraph (c), is <br/>
<a id="pl.9.11"></a><var>9.11</var>also increased by $150,000 in calendar year 2002 only and by $75,000 in calendar year <br/>
<a id="pl.9.12"></a><var>9.12</var>2009 only, provided that: <br/>
<a id="pl.9.13"></a><var>9.13</var>    (1) the city had a population of at least 3,000 but no more than 4,000 in 1999; <br/>
<a id="pl.9.14"></a><var>9.14</var>    (2) its home county is located within the seven-county metropolitan area; <br/>
<a id="pl.9.15"></a><var>9.15</var>    (3) its pre-1940 housing percentage is less than 15 percent; and <br/>
<a id="pl.9.16"></a><var>9.16</var>    (4) its city net tax capacity per capita for taxes payable in 2000 is less than $900 <br/>
<a id="pl.9.17"></a><var>9.17</var>per capita. <br/>
<a id="pl.9.18"></a><var>9.18</var>    (o) (n) The city aid base for a city is increased by $200,000 beginning in calendar <br/>
<a id="pl.9.19"></a><var>9.19</var>year 2003 and the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, <br/>
<a id="pl.9.20"></a><var>9.20</var>subdivision 9
         </statute_ref>, paragraph (c), is also increased by $200,000 in calendar year 2003 only, <br/>
<a id="pl.9.21"></a><var>9.21</var>provided that the city qualified for an increase in homestead and agricultural credit aid <br/>
<a id="pl.9.22"></a><var>9.22</var>under Laws 1995, chapter 264, article 8, section 18. <br/>
<a id="pl.9.23"></a><var>9.23</var>    (p) (o) The city aid base for a city is increased by $200,000 in 2004 only and the <br/>
<a id="pl.9.24"></a><var>9.24</var>maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is <br/>
<a id="pl.9.25"></a><var>9.25</var>also increased by $200,000 in calendar year 2004 only, if the city is the site of a nuclear <br/>
<a id="pl.9.26"></a><var>9.26</var>dry cask storage facility. <br/>
<a id="pl.9.27"></a><var>9.27</var>    (q) (p) The city aid base for a city is increased by $10,000 in 2004 and thereafter <br/>
<a id="pl.9.28"></a><var>9.28</var>and the maximum total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is also <br/>
<a id="pl.9.29"></a><var>9.29</var>increased by $10,000 in calendar year 2004 only, if the city was included in a federal <br/>
<a id="pl.9.30"></a><var>9.30</var>major disaster designation issued on April 1, 1998, and its pre-1940 housing stock was <br/>
<a id="pl.9.31"></a><var>9.31</var>decreased by more than 40 percent between 1990 and 2000. <br/>
<a id="pl.9.32"></a><var>9.32</var>    (r) (q) The city aid base for a city is increased by $30,000  in 2009 and thereafter  <br/>
<a id="pl.9.33"></a><var>9.33</var>and the maximum total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is also <br/>
<a id="pl.9.34"></a><var>9.34</var>increased by $25,000 in calendar year 2006 only if the city had a population in 2003 <br/>
<a id="pl.9.35"></a><var>9.35</var>of at least 1,000 and has a state park for which the city provides rescue services and <br/>
<a id="pl.10.1"></a><var>10.1</var>which comprised at least 14 percent of the total geographic area included within the <br/>
<a id="pl.10.2"></a><var>10.2</var>city boundaries in 2000. <br/>
<a id="pl.10.3"></a><var>10.3</var>    (s) The city aid base for a city with a population less than 5,000 is increased in <br/>
<a id="pl.10.4"></a><var>10.4</var>2006 and thereafter and the minimum and maximum amount of total aid it may receive <br/>
<a id="pl.10.5"></a><var>10.5</var>under this section is also increased in calendar year 2006 only by an amount equal to <br/>
<a id="pl.10.6"></a><var>10.6</var>$6 multiplied by its population. <br/>
<a id="pl.10.7"></a><var>10.7</var>    (t) (r) The city aid base for a city is increased by $80,000 in 2009 and thereafter and <br/>
<a id="pl.10.8"></a><var>10.8</var>the minimum and maximum amount of total aid it may receive under section 
         <statute_ref>477A.013</statute_ref>, <br/>
<a id="pl.10.9"></a><var>10.9</var>subdivision 9, is also increased by $80,000 in calendar year 2009 only, if: <br/>
<a id="pl.10.10"></a><var>10.10</var>    (1) as of May 1, 2006, at least 25 percent of the tax capacity of the city is proposed <br/>
<a id="pl.10.11"></a><var>10.11</var>to be placed in trust status as tax-exempt Indian land; <br/>
<a id="pl.10.12"></a><var>10.12</var>    (2) the placement of the land is being challenged administratively or in court; and <br/>
<a id="pl.10.13"></a><var>10.13</var>    (3) due to the challenge, the land proposed to be placed in trust is still on the tax <br/>
<a id="pl.10.14"></a><var>10.14</var>rolls as of May 1, 2006. <br/>
<a id="pl.10.15"></a><var>10.15</var>    (u) (s) The city aid base for a city is increased by $100,000 in 2007 and thereafter <br/>
<a id="pl.10.16"></a><var>10.16</var>and the minimum and maximum total amount of aid it may receive under this section is <br/>
<a id="pl.10.17"></a><var>10.17</var>also increased in calendar year 2007 only, provided that: <br/>
<a id="pl.10.18"></a><var>10.18</var>    (1) the city has a 2004 estimated population greater than 200 but less than 2,000; <br/>
<a id="pl.10.19"></a><var>10.19</var>    (2) its city net tax capacity for aids payable in 2006 was less than $300 per capita; <br/>
<a id="pl.10.20"></a><var>10.20</var>    (3) the ratio of its pay 2005 tax levy compared to its city net tax capacity for aids <br/>
<a id="pl.10.21"></a><var>10.21</var>payable in 2006 was greater than 110 percent; and <br/>
<a id="pl.10.22"></a><var>10.22</var>    (4) it is located in a county where at least 15,000 acres of land are classified as <br/>
<a id="pl.10.23"></a><var>10.23</var>tax-exempt Indian reservations according to the 2004 abstract of tax-exempt property. <br/>
<a id="pl.10.24"></a><var>10.24</var>    (v) (t) The city aid base for a city is increased by $30,000 in 2009 only, and the <br/>
<a id="pl.10.25"></a><var>10.25</var>maximum total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is also increased <br/>
<a id="pl.10.26"></a><var>10.26</var>by $30,000 in calendar year 2009, only if the city had a population in 2005 of less than <br/>
<a id="pl.10.27"></a><var>10.27</var>3,000 and the city's boundaries as of 2007 were formed by the consolidation of two cities <br/>
<a id="pl.10.28"></a><var>10.28</var>and one township in 2002. <br/>
<a id="pl.10.29"></a><var>10.29</var>    (u) The city aid base for a city is increased by $100,000 in 2009 and thereafter, and <br/>
<a id="pl.10.30"></a><var>10.30</var>the maximum total aid it may receive under section 
<statute_ref>477A.013, subdivision 9</statute_ref>, is also <br/>
<a id="pl.10.31"></a><var>10.31</var>increased by $100,000 in calendar year 2009 only, if the city had a city net tax capacity for <br/>
<a id="pl.10.32"></a><var>10.32</var>aids payable in 2007 of less than $150 per capita and the city experienced flooding on <br/>
<a id="pl.10.33"></a><var>10.33</var>March 14, 2007, that resulted in evacuation of at least 40 homes.<br/>
<a id="pl.10.34"></a><var>10.34</var>    (v) The city aid base for a city is increased by $100,000 in 2009 to 2013, and the <br/>
<a id="pl.10.35"></a><var>10.35</var>maximum total aid it may receive under section 
<statute_ref>477A.013, subdivision 9</statute_ref>, is also increased <br/>
<a id="pl.10.36"></a><var>10.36</var>by $100,000 in calendar year 2009 only, if the city:<br/>
<a id="pl.11.1"></a><var>11.1</var>    (1) is located outside of the Minneapolis-St. Paul standard metropolitan statistical <br/>
<a id="pl.11.2"></a><var>11.2</var>area;<br/>
<a id="pl.11.3"></a><var>11.3</var>    (2) has a 2005 population greater than 7,000 but less than 8,000; and<br/>
<a id="pl.11.4"></a><var>11.4</var>    (3) has a 2005 net tax capacity per capita of less than $500.<br/>
<a id="pl.11.5"></a><var>11.5</var>    (w) The city aid base is increased by $25,000 in calendar years 2009 to 2013 and the <br/>
<a id="pl.11.6"></a><var>11.6</var>maximum amount of total aid it may receive under section 477A.013, subdivision 9, is <br/>
<a id="pl.11.7"></a><var>11.7</var>increased by $25,000 in calendar year 2009 only, provided that:<br/>
<a id="pl.11.8"></a><var>11.8</var>    (1) the city is located in the seven-county metropolitan area;<br/>
<a id="pl.11.9"></a><var>11.9</var>    (2) its population in 2006 is less than 200; and <br/>
<a id="pl.11.10"></a><var>11.10</var>    (3) the percentage of its housing stock built before 1940, according to the 2000 <br/>
<a id="pl.11.11"></a><var>11.11</var>United States Census, is greater than 40 percent.<br/>
<a id="pl.11.12"></a><var>11.12</var>    (x) The city aid base is increased by $90,000 in calendar year 2009 only and the <br/>
<a id="pl.11.13"></a><var>11.13</var>minimum and maximum total amount of aid it may receive under section 477A.013, <br/>
<a id="pl.11.14"></a><var>11.14</var>subdivision 9, is also increased by $90,000 in calendar year 2009 only, provided that the <br/>
<a id="pl.11.15"></a><var>11.15</var>city is located in the seven-county metropolitan area, has a 2006 population between 5,000 <br/>
<a id="pl.11.16"></a><var>11.16</var>and 7,000 and has a 1997 population of over 7,000.<br/>
<a id="pl.11.17"></a><var>11.17</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.11.18"></a><var>11.18</var>2009 and thereafter.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.11.19"></a><var>11.19</var>    Sec. 3. Minnesota Statutes 2006, section 477A.011, is amended by adding a <br/>
<a id="pl.11.20"></a><var>11.20</var>subdivision to read:<br/>
<a id="pl.11.21"></a><var>11.21</var>    Subd. 41. <b>Small city aid base.</b> (a) "Small city aid base" for a city with a population <br/>
<a id="pl.11.22"></a><var>11.22</var>less than 5,000 is equal to $8.50 multiplied by its population. The small city aid base for <br/>
<a id="pl.11.23"></a><var>11.23</var>all other cities is equal to zero.<br/>
<a id="pl.11.24"></a><var>11.24</var>    (b) For calendar year 2010 and subsequent years, the small city aid base for a city, as <br/>
<a id="pl.11.25"></a><var>11.25</var>determined in paragraph (a), is multiplied by the ratio of the appropriation under section <br/>
<a id="pl.11.26"></a><var>11.26</var>477A.03, subdivision 2a, for the year in which the aid is paid to the appropriation under <br/>
<a id="pl.11.27"></a><var>11.27</var>that section for aids payable in 2009.<br/>
<a id="pl.11.28"></a><var>11.28</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.11.29"></a><var>11.29</var>2009 and thereafter.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.11.30"></a><var>11.30</var>    Sec. 4. Minnesota Statutes 2006, section 477A.011, is amended by adding a <br/>
<a id="pl.11.31"></a><var>11.31</var>subdivision to read:<br/>
<a id="pl.11.32"></a><var>11.32</var>    Subd. 42. <b>City jobs base.</b> (a) "City jobs base" for a city with a population of 5,000 <br/>
<a id="pl.11.33"></a><var>11.33</var>or more is equal to the product of (1) $25.20, (2) the number of jobs per capita in the <br/>
<a id="pl.11.34"></a><var>11.34</var>city, and (3) its population. For cities with a population less than 5,000, the city jobs <br/>
<a id="pl.12.1"></a><var>12.1</var>base is equal to zero. For a city receiving aid under section 477A.011, subdivision 36, <br/>
<a id="pl.12.2"></a><var>12.2</var>paragraph (l), its city jobs base is reduced by the lesser of 36 percent of the amount of <br/>
<a id="pl.12.3"></a><var>12.3</var>aid received under that paragraph or $1,000,000. No city's city jobs base may exceed <br/>
<a id="pl.12.4"></a><var>12.4</var>$4,725,000 under this paragraph.<br/>
<a id="pl.12.5"></a><var>12.5</var>    (b) For calendar year 2010 and subsequent years, the city jobs base for a city, as <br/>
<a id="pl.12.6"></a><var>12.6</var>determined in paragraph (a), is multiplied by the ratio of the appropriation under section <br/>
<a id="pl.12.7"></a><var>12.7</var>477A.03, subdivision 2a, for the year in which the aid is paid to the appropriation under <br/>
<a id="pl.12.8"></a><var>12.8</var>that section for aids payable in 2009.<br/>
<a id="pl.12.9"></a><var>12.9</var>    (c) For purposes of this subdivision, "jobs per capita in the city" means (1) the <br/>
<a id="pl.12.10"></a><var>12.10</var>average annual number of employees in the city based on the data from the Quarterly <br/>
<a id="pl.12.11"></a><var>12.11</var>Census of Employment and Wages, as reported by the Department of Employment and <br/>
<a id="pl.12.12"></a><var>12.12</var>Economic Development, for the most recent calendar year available as of May 1, 2008, <br/>
<a id="pl.12.13"></a><var>12.13</var>divided by (2) the city's population for the same calendar year as the employment data. <br/>
<a id="pl.12.14"></a><var>12.14</var>The commissioner of the Department of Employment and Economic Development shall <br/>
<a id="pl.12.15"></a><var>12.15</var>certify to the city the average annual number of employees for each city by June 1, 2008. <br/>
<a id="pl.12.16"></a><var>12.16</var>A city may challenge an estimate under this paragraph by filing its specific objection, <br/>
<a id="pl.12.17"></a><var>12.17</var>including the names of employers that it feels may have misreported data, in writing with <br/>
<a id="pl.12.18"></a><var>12.18</var>the commissioner by June 20, 2008. The commissioner shall make every reasonable effort <br/>
<a id="pl.12.19"></a><var>12.19</var>to address the specific objection and adjust the data as necessary. The commissioner shall <br/>
<a id="pl.12.20"></a><var>12.20</var>certify the estimates of the annual employment to the commissioner of revenue by July 15, <br/>
<a id="pl.12.21"></a><var>12.21</var>2008, including any estimates still under objection.<br/>
<a id="pl.12.22"></a><var>12.22</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.12.23"></a><var>12.23</var>2009 and thereafter.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.12.24"></a><var>12.24</var>    Sec. 5. Minnesota Statutes 2006, section 477A.011, is amended by adding a <br/>
<a id="pl.12.25"></a><var>12.25</var>subdivision to read:<br/>
<a id="pl.12.26"></a><var>12.26</var>    Subd. 43. <b>Unmet need.</b> "Unmet need" for a city is equal to the difference between <br/>
<a id="pl.12.27"></a><var>12.27</var>(1) its city revenue need multiplied by its population, and (2) its city net tax capacity <br/>
<a id="pl.12.28"></a><var>12.28</var>multiplied by the tax effort rate.<br/>
<a id="pl.12.29"></a><var>12.29</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.12.30"></a><var>12.30</var>2009 and thereafter.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.12.31"></a><var>12.31</var>    Sec. 6. Minnesota Statutes 2006, section 477A.0124, subdivision 5, is amended to read:<br/>
<a id="pl.12.32"></a><var>12.32</var>    Subd. 5. <b>County transition aid.</b> (a) For 2005, a county is eligible for transition <br/>
<a id="pl.12.33"></a><var>12.33</var>aid equal to the amount, if any, by which:<br/>
<a id="pl.12.34"></a><var>12.34</var>    (1) the difference between:<br/>
<a id="pl.13.1"></a><var>13.1</var>    (i) the aid the county received under subdivision 1 in 2004, divided by the total aid <br/>
<a id="pl.13.2"></a><var>13.2</var>paid to all counties under subdivision 1, multiplied by $205,000,000; and<br/>
<a id="pl.13.3"></a><var>13.3</var>    (ii) the amount of aid the county is certified to receive in 2005 under subdivisions <br/>
<a id="pl.13.4"></a><var>13.4</var>3 and 4;<br/>
<a id="pl.13.5"></a><var>13.5</var>exceeds:<br/>
<a id="pl.13.6"></a><var>13.6</var>    (2) three percent of the county's adjusted net tax capacity.<br/>
<a id="pl.13.7"></a><var>13.7</var>A county's aid under this paragraph may not be less than zero.<br/>
<a id="pl.13.8"></a><var>13.8</var>    (b) In 2006, a county is eligible to receive two-thirds of the transition aid it received <br/>
<a id="pl.13.9"></a><var>13.9</var>in 2005.<br/>
<a id="pl.13.10"></a><var>13.10</var>    (c) In 2007, For 2009 and each year thereafter, a county is eligible to receive <br/>
<a id="pl.13.11"></a><var>13.11</var>one-third of the transition aid it received in 2005 2007.<br/>
<a id="pl.13.12"></a><var>13.12</var>    (d) No county shall receive aid under this subdivision after 2007.<br/>
<a id="pl.13.13"></a><var>13.13</var>    (b) In 2009 only, a county with (1) a 2006 population less than 30,000, and (2) <br/>
<a id="pl.13.14"></a><var>13.14</var>an average Part I crimes per capita greater than 3.9 percent based on factors used in <br/>
<a id="pl.13.15"></a><var>13.15</var>determining county program aid payable in 2008, shall receive $100,000.<br/>
<a id="pl.13.16"></a><var>13.16</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2009 and <br/>
<a id="pl.13.17"></a><var>13.17</var>thereafter.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.13.18"></a><var>13.18</var>    Sec. 7. Minnesota Statutes 2006, section 477A.013, subdivision 8, as amended by <br/>
<a id="pl.13.19"></a><var>13.19</var>Laws 2008, chapter 154, article 1, section 2, is amended to read:<br/>
<a id="pl.13.20"></a><var>13.20</var>    Subd. 8.  <b>City formula aid.</b>  (a) In calendar year 2009, the formula aid for a city <br/>
<a id="pl.13.21"></a><var>13.21</var>is equal to the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need <br/>
<a id="pl.13.22"></a><var>13.22</var>increase percentage multiplied by its unmet need. <br/>
<a id="pl.13.23"></a><var>13.23</var>    (b) In calendar year 2004 2010 and subsequent years, the formula aid for a city is <br/>
<a id="pl.13.24"></a><var>13.24</var>equal to the need increase percentage multiplied by the difference between (1) the city's <br/>
<a id="pl.13.25"></a><var>13.25</var>revenue need multiplied by its population, and (2) the sum of the city's net tax capacity <br/>
<a id="pl.13.26"></a><var>13.26</var>multiplied by the tax effort rate. the sum of (1) its city jobs base, (2) its small city aid <br/>
<a id="pl.13.27"></a><var>13.27</var>base, and (3) the need increase percentage multiplied by the average of its unmet need <br/>
<a id="pl.13.28"></a><var>13.28</var>for the most recently available two years.<br/>
<a id="pl.13.29"></a><var>13.29</var>No city may have a formula aid amount less than zero. The need increase percentage <br/>
<a id="pl.13.30"></a><var>13.30</var>must be the same for all cities. <br/>
<a id="pl.13.31"></a><var>13.31</var>    The applicable need increase percentage must be calculated by the Department of <br/>
<a id="pl.13.32"></a><var>13.32</var>Revenue so that the total of the aid under subdivision 9 equals the total amount available <br/>
<a id="pl.13.33"></a><var>13.33</var>for aid under section 
         <statute_ref>477A.03</statute_ref> after the subtraction under section 
<statute_ref>477A.014, subdivisions <br/>
<a id="pl.13.34"></a><var>13.34</var>4 and 5
</statute_ref>. For aids payable in 2009 only, all data used in calculating aid to cities under <br/>
<a id="pl.13.35"></a><var>13.35</var>sections 477A.011 to 477A.013 will be based on the data available for calculating aid to <br/>
<a id="pl.14.1"></a><var>14.1</var>cities for aids payable in 2008. For aids payable in 2010 and thereafter, data used in <br/>
<a id="pl.14.2"></a><var>14.2</var>calculating aids to cities under sections 477A.011 to 477A.013 shall be the most recently <br/>
<a id="pl.14.3"></a><var>14.3</var>available data as of January 1 in the year in which the aid is calculated.<br/>
<a id="pl.14.4"></a><var>14.4</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.14.5"></a><var>14.5</var>2009 and thereafter, provided that the appropriation increase for aids payable in 2009 <br/>
<a id="pl.14.6"></a><var>14.6</var>under section 477A.03, subdivision 2a, goes into effect.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.14.7"></a><var>14.7</var>    Sec. 8. Minnesota Statutes 2006, section 477A.013, subdivision 9, as amended by <br/>
<a id="pl.14.8"></a><var>14.8</var>Laws 2008, chapter 154, article 1, section 3, is amended to read:<br/>
<a id="pl.14.9"></a><var>14.9</var>    Subd. 9.  <b>City aid distribution.</b> (a) In calendar year 2009 and thereafter, each <br/>
<a id="pl.14.10"></a><var>14.10</var>city shall receive an aid distribution equal to the sum of (1) the city formula aid under <br/>
<a id="pl.14.11"></a><var>14.11</var>subdivision 8, and (2) its city aid base, and (3) one-half of the difference between its total <br/>
<a id="pl.14.12"></a><var>14.12</var>aid in the previous year under this subdivision and its city aid base in the previous year. <br/>
<a id="pl.14.13"></a><var>14.13</var>    (b) For aids payable in 2010 and thereafter, each city shall receive an aid distribution <br/>
<a id="pl.14.14"></a><var>14.14</var>equal to (1) the city aid formula under subdivision 8, (2) its city aid base, and (3) its <br/>
<a id="pl.14.15"></a><var>14.15</var>formula aid under subdivision 8 in the previous year, prior to any adjustments under <br/>
<a id="pl.14.16"></a><var>14.16</var>this subdivision 2009 only, the total aid for any city shall not exceed the sum of (1) 35 <br/>
<a id="pl.14.17"></a><var>14.17</var>percent of the city's net levy for the year prior to the aid distribution, plus (2) its total <br/>
<a id="pl.14.18"></a><var>14.18</var>aid in the previous year.<br/>
<a id="pl.14.19"></a><var>14.19</var>    (c) For aids payable in 2009 2010 and thereafter, the total aid for any city shall <br/>
<a id="pl.14.20"></a><var>14.20</var>not exceed the sum of (1) ten percent of the city's net levy for the year prior to the aid <br/>
<a id="pl.14.21"></a><var>14.21</var>distribution plus (2) its total aid in the previous year. For aids payable in 2009 and <br/>
<a id="pl.14.22"></a><var>14.22</var>thereafter, the total aid for any city with a population of 2,500 or more may not be less than <br/>
<a id="pl.14.23"></a><var>14.23</var>its total aid under this section in the previous year minus the lesser of $15 $10 multiplied <br/>
<a id="pl.14.24"></a><var>14.24</var>by its population, or ten percent of its net levy in the year prior to the aid distribution. <br/>
<a id="pl.14.25"></a><var>14.25</var>    (d) For aids payable in 2009 2010  and thereafter, the total aid for a city with a <br/>
<a id="pl.14.26"></a><var>14.26</var>population less than 2,500 must not be less than the amount it was certified to receive in <br/>
<a id="pl.14.27"></a><var>14.27</var>the previous year minus the lesser of $15 $10 multiplied by its population, or five percent <br/>
<a id="pl.14.28"></a><var>14.28</var>of its 2003 certified aid amount. For aids payable in 2009 only, the total aid for a city with <br/>
<a id="pl.14.29"></a><var>14.29</var>a population less than 2,500 must not be less than what it received under this section in the <br/>
<a id="pl.14.30"></a><var>14.30</var>previous year unless its total aid in calendar year 2008 was aid under section 477A.011, <br/>
<a id="pl.14.31"></a><var>14.31</var>subdivision 36, paragraph (s), in which case its minimum aid is zero. <br/>
<a id="pl.14.32"></a><var>14.32</var>    (e)  A city's aid loss under this section may not exceed $300,000 in any year in <br/>
<a id="pl.14.33"></a><var>14.33</var>which the total city aid appropriation under section 477A.03, subdivision 2a, is equal or <br/>
<a id="pl.14.34"></a><var>14.34</var>greater than the appropriation under that subdivision in the previous year, unless the <br/>
<a id="pl.15.1"></a><var>15.1</var>city has an adjustment in its city net tax capacity under the process described in section <br/>
<a id="pl.15.2"></a><var>15.2</var>469.174, subdivision 28.<br/>
<a id="pl.15.3"></a><var>15.3</var>    (f) If a city's net tax capacity used in calculating aid under this section has decreased <br/>
<a id="pl.15.4"></a><var>15.4</var>in any year by more than 25 percent from its net tax capacity in the previous year due to <br/>
<a id="pl.15.5"></a><var>15.5</var>property becoming tax-exempt Indian land, the city's maximum allowed aid increase <br/>
<a id="pl.15.6"></a><var>15.6</var>under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the <br/>
<a id="pl.15.7"></a><var>15.7</var>year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease <br/>
<a id="pl.15.8"></a><var>15.8</var>resulting from the property becoming tax exempt. <br/>
<a id="pl.15.9"></a><var>15.9</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.15.10"></a><var>15.10</var>2009 and thereafter, provided that the appropriation increase for aids payable in 2009 <br/>
<a id="pl.15.11"></a><var>15.11</var>under section 477A.03, subdivision 2a, goes into effect.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.15.12"></a><var>15.12</var>    Sec. 9. Minnesota Statutes 2006, section 477A.03, is amended to read:<br/>
<a id="pl.15.13"></a><var>15.13</var><b>477A.03 APPROPRIATION.</b><br/>
<a id="pl.15.14"></a><var>15.14</var>    Subd. 2. <b>Annual appropriation.</b> A sum sufficient to discharge the duties imposed <br/>
<a id="pl.15.15"></a><var>15.15</var>by sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.014</statute_ref> is annually appropriated from the general fund to the <br/>
<a id="pl.15.16"></a><var>15.16</var>commissioner of revenue. <br/>
<a id="pl.15.17"></a><var>15.17</var>    Subd. 2a. <b>Cities.</b> For aids payable in 2004 2009 and thereafter, the total aids aid <br/>
<a id="pl.15.18"></a><var>15.18</var>paid under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, are limited to $429,000,000 is $526,148,487, <br/>
<a id="pl.15.19"></a><var>15.19</var>subject to adjustment in subdivision 5. For aids payable in 2005, the total aids paid under <br/>
<a id="pl.15.20"></a><var>15.20</var>section 
<statute_ref>477A.013, subdivision 9</statute_ref>, are limited to $437,052,000. For aids payable in 2006 <br/>
<a id="pl.15.21"></a><var>15.21</var>and thereafter, the total aids paid under section 
<statute_ref>477A.013, subdivision 9</statute_ref>, is limited to <br/>
<a id="pl.15.22"></a><var>15.22</var>$485,052,000.<br/>
<a id="pl.15.23"></a><var>15.23</var>    Subd. 2b. <b>Counties.</b> (a) For aids payable in calendar year 2005 and thereafter, <br/>
<a id="pl.15.24"></a><var>15.24</var>the total aids paid to counties under section 
<statute_ref>477A.0124, subdivision 3</statute_ref>, are limited to <br/>
<a id="pl.15.25"></a><var>15.25</var>$100,500,000. For aids payable in 2009 and thereafter, the total aid payable under section <br/>
<a id="pl.15.26"></a><var>15.26</var>477A.0124, subdivision 3, is $111,500,000 minus one-half of the total aid amount <br/>
<a id="pl.15.27"></a><var>15.27</var>determined under section 477A.0124, subdivision 5, paragraph (b), subject to adjustment <br/>
<a id="pl.15.28"></a><var>15.28</var>in subdivision 5. Each calendar year, $500,000 shall be retained by the commissioner of <br/>
<a id="pl.15.29"></a><var>15.29</var>revenue to make reimbursements to the commissioner of finance for payments made <br/>
<a id="pl.15.30"></a><var>15.30</var>under section 
         <statute_ref>611.27</statute_ref>. For calendar year 2004, the amount shall be in addition to the <br/>
<a id="pl.15.31"></a><var>15.31</var>payments authorized under section 
         <statute_ref>477A.0124, subdivision 1</statute_ref>. For calendar year 2005 <br/>
<a id="pl.15.32"></a><var>15.32</var>and subsequent years, the amount shall be deducted from the appropriation under <br/>
<a id="pl.15.33"></a><var>15.33</var>this paragraph. The reimbursements shall be to defray the additional costs associated <br/>
<a id="pl.15.34"></a><var>15.34</var>with court-ordered counsel under section 
         <statute_ref>611.27</statute_ref>. Any retained amounts not used for <br/>
<a id="pl.16.1"></a><var>16.1</var>reimbursement in a year shall be included in the next distribution of county need aid <br/>
<a id="pl.16.2"></a><var>16.2</var>that is certified to the county auditors for the purpose of property tax reduction for the <br/>
<a id="pl.16.3"></a><var>16.3</var>next taxes payable year.<br/>
<a id="pl.16.4"></a><var>16.4</var>    (b) For aids payable in 2005 2009 and thereafter, the total aids aid under section <br/>
<statute_ref><a id="pl.16.5"></a><var>16.5</var>477A.0124, subdivision 4
         </statute_ref>, are limited to $105,000,000 is $116,132,923 minus one-half <br/>
<a id="pl.16.6"></a><var>16.6</var>of the total aid amount determined under section 477A.0124, subdivision 5, paragraph <br/>
<a id="pl.16.7"></a><var>16.7</var>(b), subject to adjustment in subdivision 5. For aids payable in 2006 and thereafter, <br/>
<a id="pl.16.8"></a><var>16.8</var>the total aid under section 
<statute_ref>477A.0124, subdivision 4</statute_ref>, is limited to $105,132,923. The <br/>
<a id="pl.16.9"></a><var>16.9</var>commissioner of finance shall bill the commissioner of revenue for the cost of preparation <br/>
<a id="pl.16.10"></a><var>16.10</var>of local impact notes as required by section 
         <statute_ref>3.987</statute_ref>, not to exceed $207,000 in fiscal year <br/>
<a id="pl.16.11"></a><var>16.11</var>2004 and thereafter. The commissioner of education shall bill the commissioner of <br/>
<a id="pl.16.12"></a><var>16.12</var>revenue for the cost of preparation of local impact notes for school districts as required by <br/>
<a id="pl.16.13"></a><var>16.13</var>section 
         <statute_ref>3.987</statute_ref>, not to exceed $7,000 in fiscal year 2004 and thereafter. The commissioner <br/>
<a id="pl.16.14"></a><var>16.14</var>of revenue shall deduct the amounts billed under this paragraph from the appropriation <br/>
<a id="pl.16.15"></a><var>16.15</var>under this paragraph. The amounts deducted are appropriated to the commissioner of <br/>
<a id="pl.16.16"></a><var>16.16</var>finance and the commissioner of education for the preparation of local impact notes.<br/>
<a id="pl.16.17"></a><var>16.17</var>    Subd. 5. <b>Aid adjustments.</b> For aids payable in 2010, the aid amounts contained <br/>
<a id="pl.16.18"></a><var>16.18</var>in subdivisions 2a and 2b are increased by two percent. For aids payable in 2011 and <br/>
<a id="pl.16.19"></a><var>16.19</var>thereafter, the aids amounts contained in subdivisions 2a and 2b are equal to 104 percent <br/>
<a id="pl.16.20"></a><var>16.20</var>of the amounts for aids payable in 2010 under this section.<br/>
<a id="pl.16.21"></a><var>16.21</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.16.22"></a><var>16.22</var>2009 and thereafter.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.16.23"></a><var>16.23</var>    Sec. 10. <b>[477A.16] UTILITY VALUATION TRANSITION AID.</b><br/>
<a id="pl.16.24"></a><var>16.24</var>    Subdivision 1. <b>Definitions.</b> (a) When used in this section, the following terms have <br/>
<a id="pl.16.25"></a><var>16.25</var>the meanings indicated in this subdivision.<br/>
<a id="pl.16.26"></a><var>16.26</var>    (b) "Local unit" means a home rule charter or statutory city, or a town.<br/>
<a id="pl.16.27"></a><var>16.27</var>    (c) "Old rule utility net tax capacity" means the net tax capacity of all public utility <br/>
<a id="pl.16.28"></a><var>16.28</var>property within the local unit's taxing jurisdiction for assessment year 2007, calculated as <br/>
<a id="pl.16.29"></a><var>16.29</var>if the property were valued under valuation rules in effect prior to assessment year 2007.<br/>
<a id="pl.16.30"></a><var>16.30</var>    (d) "New rule utility net tax capacity" means the net tax capacity of all public utility <br/>
<a id="pl.16.31"></a><var>16.31</var>property within the local unit's taxing jurisdiction for assessment year 2007, calculated as <br/>
<a id="pl.16.32"></a><var>16.32</var>if the property were valued under valuation rules in effect for assessment year 2007, but <br/>
<a id="pl.16.33"></a><var>16.33</var>without the phase-in provisions of Minnesota Rules, part 8100.0800.<br/>
<a id="pl.16.34"></a><var>16.34</var>    (e) "Modified net tax capacity" means the local unit's net tax capacity for taxes <br/>
<a id="pl.16.35"></a><var>16.35</var>payable in 2008, modified by substituting the old rule utility net tax capacity for the actual <br/>
<a id="pl.17.1"></a><var>17.1</var>net tax capacity of utility property. Modified net tax capacity must be determined by the <br/>
<a id="pl.17.2"></a><var>17.2</var>commissioner of revenue based on information and data available to the commissioner <br/>
<a id="pl.17.3"></a><var>17.3</var>as of July 1, 2008.<br/>
<a id="pl.17.4"></a><var>17.4</var>    (f) "Net tax capacity differential" means the positive difference, if any, by which the <br/>
<a id="pl.17.5"></a><var>17.5</var>local unit's old rule utility net tax capacity exceeds its new rule utility net tax capacity.<br/>
<a id="pl.17.6"></a><var>17.6</var>    (g) "Current year net tax capacity differential" means the positive difference, if any, <br/>
<a id="pl.17.7"></a><var>17.7</var>by which the local unit's old rule utility net tax capacity exceeds its total tax capacity of <br/>
<a id="pl.17.8"></a><var>17.8</var>utility property for taxes payable in the current year.<br/>
<a id="pl.17.9"></a><var>17.9</var>    Subd. 2. <b>Aid eligibility; payment.</b> (a) If the net tax capacity differential of the <br/>
<a id="pl.17.10"></a><var>17.10</var>local unit exceeds four percent of its modified net tax capacity, the local unit is eligible <br/>
<a id="pl.17.11"></a><var>17.11</var>for transition aid computed under paragraphs (b) and (c).<br/>
<a id="pl.17.12"></a><var>17.12</var>    (b) For aids payable in 2009, transition aid under this section for an eligible local <br/>
<a id="pl.17.13"></a><var>17.13</var>unit equals 50 percent of (1) the net tax capacity differential, times (2) the jurisdiction's <br/>
<a id="pl.17.14"></a><var>17.14</var>tax rate for taxes payable in 2008.<br/>
<a id="pl.17.15"></a><var>17.15</var>    (c) For aids payable in 2010 and thereafter, transition aid under this section for <br/>
<a id="pl.17.16"></a><var>17.16</var>an eligible local unit equals (1) the current year net tax capacity differential for taxes <br/>
<a id="pl.17.17"></a><var>17.17</var>payable in the year preceding the aid distribution year, times (2) the jurisdiction's tax rate <br/>
<a id="pl.17.18"></a><var>17.18</var>for taxes payable in 2008.<br/>
<a id="pl.17.19"></a><var>17.19</var>    (c) The commissioner of revenue shall compute the amount of transition aid payable <br/>
<a id="pl.17.20"></a><var>17.20</var>to each local unit under this section. On or before August 1 of each year, the commissioner <br/>
<a id="pl.17.21"></a><var>17.21</var>shall certify the amount of transition aid computed for aids payable in the following year <br/>
<a id="pl.17.22"></a><var>17.22</var>for each recipient local unit. The commissioner shall pay transition aid to local units <br/>
<a id="pl.17.23"></a><var>17.23</var>annually at the times provided in section 477A.015.<br/>
<a id="pl.17.24"></a><var>17.24</var>    Subd. 3. <b>Appropriation.</b> An amount sufficient to pay transition aid under this <br/>
<a id="pl.17.25"></a><var>17.25</var>section is annually appropriated to the commissioner of revenue from the general fund.<br/>
<a id="pl.17.26"></a><var>17.26</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2009 and <br/>
<a id="pl.17.27"></a><var>17.27</var>thereafter.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.17.28"></a><var>17.28</var>    Sec. 11. <b>STATE PARKS LOCATED ON LAKE VERMILION; DISTRIBUTION </b><br/>
<a id="pl.17.29"></a><var>17.29</var><b>OF PAYMENTS IN LIEU OF TAXES.</b><br/>
<a id="pl.17.30"></a><var>17.30</var>    (a) Notwithstanding Minnesota Statutes, section 477A.14, payments in lieu of <br/>
<a id="pl.17.31"></a><var>17.31</var>taxation under Minnesota Statutes, sections 477A.11 to 477A.145, for the land included <br/>
<a id="pl.17.32"></a><var>17.32</var>in any state park located in whole or in part on the shores of Lake Vermilion must be <br/>
<a id="pl.17.33"></a><var>17.33</var>distributed to the taxing jurisdictions containing the property as follows: one-third to the <br/>
<a id="pl.17.34"></a><var>17.34</var>school district, one-third to the township, and one-third to the county. Each of those taxing <br/>
<a id="pl.17.35"></a><var>17.35</var>jurisdictions may use the payments for their general purposes.<br/>
<a id="pl.18.1"></a><var>18.1</var>    (b) Notwithstanding Minnesota Statutes, section 477A.11, the payments for all lands <br/>
<a id="pl.18.2"></a><var>18.2</var>described in paragraph (a) must be made at the rate set for acquired natural resources land.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.18.3"></a><var>18.3</var>    Sec. 12. <b>STUDY OF AIDS TO LOCAL GOVERNMENTS.</b><br/>
<a id="pl.18.4"></a><var>18.4</var>    The chairs of the senate and house of representatives committees with jurisdiction <br/>
<a id="pl.18.5"></a><var>18.5</var>over taxes shall each appoint five members to a study group of the tax committees to <br/>
<a id="pl.18.6"></a><var>18.6</var>examine the current system of aids to local governments and make recommendations on <br/>
<a id="pl.18.7"></a><var>18.7</var>improvements to the system. Of the five members appointed by each chair, two must be <br/>
<a id="pl.18.8"></a><var>18.8</var>members of the tax committee, one of whom is a majority party member and one of <br/>
<a id="pl.18.9"></a><var>18.9</var>whom is a minority party member. The remaining members must represent local units of <br/>
<a id="pl.18.10"></a><var>18.10</var>government. The chairs of the divisions of the tax committees having jurisdiction over <br/>
<a id="pl.18.11"></a><var>18.11</var>property taxes shall also be members and shall serve as cochairs of the study group. <br/>
<a id="pl.18.12"></a><var>18.12</var>The study shall include, but not be limited to, consideration of existing disparities in <br/>
<a id="pl.18.13"></a><var>18.13</var>the distribution of local government aid, an analysis of current law need and capacity <br/>
<a id="pl.18.14"></a><var>18.14</var>factors as well as alternative need factors, alternative analytical methods for determining <br/>
<a id="pl.18.15"></a><var>18.15</var>correlations between factors and need, the formula used to calculate aid for small cities, <br/>
<a id="pl.18.16"></a><var>18.16</var>and volatility in the local government aid distribution. The group must report on its <br/>
<a id="pl.18.17"></a><var>18.17</var>specific recommendations to the legislature by December 15, 2010.<br/>
<a id="pl.18.18"></a><var>18.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.18.19"></a><var>18.19</var>    Sec. 13. <b>OUT-OF-HOME PLACEMENT AID.</b><br/>
<a id="pl.18.20"></a><var>18.20</var>    In calendar year 2009 only, $500,000 shall be distributed to any county in which (1) <br/>
<a id="pl.18.21"></a><var>18.21</var>the 2006 estimated population exceeds 30,000, and (2) the 2006 percentage of households <br/>
<a id="pl.18.22"></a><var>18.22</var>receiving food stamps exceeds 15 percent, based on data used in computing county <br/>
<a id="pl.18.23"></a><var>18.23</var>program aids for aids payable in 2008 and the 2006 estimated household count according <br/>
<a id="pl.18.24"></a><var>18.24</var>to the state demographer. The aid must be used to meet the county's cost of out-of-home <br/>
<a id="pl.18.25"></a><var>18.25</var>placement programs. $500,000 is appropriated to the commissioner of revenue from <br/>
<a id="pl.18.26"></a><var>18.26</var>the general fund to make the payment authorized under this section. The payment must <br/>
<a id="pl.18.27"></a><var>18.27</var>be made prior to June 30, 2009.<br/>
<a id="pl.18.28"></a><var>18.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.18.29"></a><var>18.29</var>    Sec. 14. <b> REPEALER.</b><br/>
<a id="pl.18.30"></a><var>18.30</var>Minnesota Statutes 2006, section 477A.014, subdivision 5, and Minnesota Statutes <br/>
<a id="pl.18.31"></a><var>18.31</var>2007 Supplement, section 477A.014, subdivision 4, are repealed.<br/>
<a id="pl.18.32"></a><var>18.32</var><b>EFFECTIVE DATE.</b>This section is effective for aid payable in 2009 and thereafter.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.19.3"></a><var>19.3</var>    Section 1. Minnesota Statutes 2006, section 275.70, subdivision 5, is amended to read:<br/>
<a id="pl.19.4"></a><var>19.4</var>    Subd. 5. <b>Special levies.</b> "Special levies" means those portions of ad valorem taxes <br/>
<a id="pl.19.5"></a><var>19.5</var>levied by a local governmental unit for the following purposes or in the following manner:<br/>
<a id="pl.19.6"></a><var>19.6</var>    (1) to pay the costs of the principal and interest on bonded indebtedness or to <br/>
<a id="pl.19.7"></a><var>19.7</var>reimburse for the amount of liquor store revenues used to pay the principal and interest <br/>
<a id="pl.19.8"></a><var>19.8</var>due on municipal liquor store bonds in the year preceding the year for which the levy <br/>
<a id="pl.19.9"></a><var>19.9</var>limit is calculated;<br/>
<a id="pl.19.10"></a><var>19.10</var>    (2) to pay the costs of principal and interest on certificates of indebtedness issued for <br/>
<a id="pl.19.11"></a><var>19.11</var>any corporate purpose except for the following:<br/>
<a id="pl.19.12"></a><var>19.12</var>    (i) tax anticipation or aid anticipation certificates of indebtedness;<br/>
<a id="pl.19.13"></a><var>19.13</var>    (ii) certificates of indebtedness issued under sections 
         <statute_ref>298.28</statute_ref> and 
         <statute_ref>298.282</statute_ref>;<br/>
<a id="pl.19.14"></a><var>19.14</var>    (iii) certificates of indebtedness used to fund current expenses or to pay the costs of <br/>
<a id="pl.19.15"></a><var>19.15</var>extraordinary expenditures that result from a public emergency; or<br/>
<a id="pl.19.16"></a><var>19.16</var>    (iv) certificates of indebtedness used to fund an insufficiency in tax receipts or <br/>
<a id="pl.19.17"></a><var>19.17</var>an insufficiency in other revenue sources;<br/>
<a id="pl.19.18"></a><var>19.18</var>    (3) to provide for the bonded indebtedness portion of payments made to another <br/>
<a id="pl.19.19"></a><var>19.19</var>political subdivision of the state of Minnesota;<br/>
<a id="pl.19.20"></a><var>19.20</var>    (4) to fund payments made to the Minnesota State Armory Building Commission <br/>
<a id="pl.19.21"></a><var>19.21</var>under section 
         <statute_ref>193.145, subdivision 2</statute_ref>, to retire the principal and interest on armory <br/>
<a id="pl.19.22"></a><var>19.22</var>construction bonds;<br/>
<a id="pl.19.23"></a><var>19.23</var>    (5) property taxes approved by voters which are levied against the referendum <br/>
<a id="pl.19.24"></a><var>19.24</var>market value as provided under section 
         <statute_ref>275.61</statute_ref>;<br/>
<a id="pl.19.25"></a><var>19.25</var>    (6) to fund matching requirements needed to qualify for federal or state grants or <br/>
<a id="pl.19.26"></a><var>19.26</var>programs to the extent that either (i) the matching requirement exceeds the matching <br/>
<a id="pl.19.27"></a><var>19.27</var>requirement in calendar year 2001, or (ii) it is a new matching requirement that did not <br/>
<a id="pl.19.28"></a><var>19.28</var>exist prior to 2002;<br/>
<a id="pl.19.29"></a><var>19.29</var>    (7) to pay the expenses reasonably and necessarily incurred in preparing for or <br/>
<a id="pl.19.30"></a><var>19.30</var>repairing the effects of natural disaster including the occurrence or threat of widespread <br/>
<a id="pl.19.31"></a><var>19.31</var>or severe damage, injury, or loss of life or property resulting from natural causes, in <br/>
<a id="pl.19.32"></a><var>19.32</var>accordance with standards formulated by the Emergency Services Division of the state <br/>
<a id="pl.19.33"></a><var>19.33</var>Department of Public Safety, as allowed by the commissioner of revenue under section <br/>
<statute_ref><a id="pl.19.34"></a><var>19.34</var>275.74, subdivision 2
         </statute_ref>;<br/>
<a id="pl.20.1"></a><var>20.1</var>    (8) pay amounts required to correct an error in the levy certified to the county <br/>
<a id="pl.20.2"></a><var>20.2</var>auditor by a city or county in a levy year, but only to the extent that when added to the <br/>
<a id="pl.20.3"></a><var>20.3</var>preceding year's levy it is not in excess of an applicable statutory, special law or charter <br/>
<a id="pl.20.4"></a><var>20.4</var>limitation, or the limitation imposed on the governmental subdivision by sections 
         <statute_ref>275.70</statute_ref> <br/>
<a id="pl.20.5"></a><var>20.5</var>to 
         <statute_ref>275.74</statute_ref> in the preceding levy year;<br/>
<a id="pl.20.6"></a><var>20.6</var>    (9) to pay an abatement under section 
         <statute_ref>469.1815</statute_ref>;<br/>
<a id="pl.20.7"></a><var>20.7</var>    (10) to pay any costs attributable to increases in the employer contribution rates <br/>
<a id="pl.20.8"></a><var>20.8</var>under chapter 353, or locally administered pension plans, that are effective after June <br/>
<a id="pl.20.9"></a><var>20.9</var>30, 2001;<br/>
<a id="pl.20.10"></a><var>20.10</var>    (11) to pay the operating or maintenance costs of a county jail as authorized in <br/>
<a id="pl.20.11"></a><var>20.11</var>section 
         <statute_ref>641.01</statute_ref> or 
         <statute_ref>641.262</statute_ref>, or of a correctional facility as defined in section 
         <statute_ref>241.021, <br/>
<a id="pl.20.12"></a><var>20.12</var>subdivision 1
         </statute_ref>, paragraph (f), to the extent that the county can demonstrate to the <br/>
<a id="pl.20.13"></a><var>20.13</var>commissioner of revenue that the amount has been included in the county budget as <br/>
<a id="pl.20.14"></a><var>20.14</var>a direct result of a rule, minimum requirement, minimum standard, or directive of the <br/>
<a id="pl.20.15"></a><var>20.15</var>Department of Corrections, or to pay the operating or maintenance costs of a regional jail <br/>
<a id="pl.20.16"></a><var>20.16</var>as authorized in section 
         <statute_ref>641.262</statute_ref>. For purposes of this clause, a district court order is <br/>
<a id="pl.20.17"></a><var>20.17</var>not a rule, minimum requirement, minimum standard, or directive of the Department of <br/>
<a id="pl.20.18"></a><var>20.18</var>Corrections. If the county utilizes this special levy, except to pay operating or maintenance <br/>
<a id="pl.20.19"></a><var>20.19</var>costs of a new regional jail facility under sections 
         <statute_ref>641.262</statute_ref> to 
         <statute_ref>641.264</statute_ref> which will not <br/>
<a id="pl.20.20"></a><var>20.20</var>replace an existing jail facility, any amount levied by the county in the previous levy year <br/>
<a id="pl.20.21"></a><var>20.21</var>for the purposes specified under this clause and included in the county's previous year's <br/>
<a id="pl.20.22"></a><var>20.22</var>levy limitation computed under section 
         <statute_ref>275.71</statute_ref>, shall be deducted from the levy limit <br/>
<a id="pl.20.23"></a><var>20.23</var>base under section 
         <statute_ref>275.71, subdivision 2</statute_ref>, when determining the county's current year <br/>
<a id="pl.20.24"></a><var>20.24</var>levy limitation. The county shall provide the necessary information to the commissioner <br/>
<a id="pl.20.25"></a><var>20.25</var>of revenue for making this determination;<br/>
<a id="pl.20.26"></a><var>20.26</var>    (12) to pay for operation of a lake improvement district, as authorized under section <br/>
<statute_ref><a id="pl.20.27"></a><var>20.27</var>103B.555
         </statute_ref>. If the county utilizes this special levy, any amount levied by the county in the <br/>
<a id="pl.20.28"></a><var>20.28</var>previous levy year for the purposes specified under this clause and included in the county's <br/>
<a id="pl.20.29"></a><var>20.29</var>previous year's levy limitation computed under section 
         <statute_ref>275.71</statute_ref> shall be deducted from <br/>
<a id="pl.20.30"></a><var>20.30</var>the levy limit base under section 
         <statute_ref>275.71, subdivision 2</statute_ref>, when determining the county's <br/>
<a id="pl.20.31"></a><var>20.31</var>current year levy limitation. The county shall provide the necessary information to the <br/>
<a id="pl.20.32"></a><var>20.32</var>commissioner of revenue for making this determination;<br/>
<a id="pl.20.33"></a><var>20.33</var>    (13) to repay a state or federal loan used to fund the direct or indirect required <br/>
<a id="pl.20.34"></a><var>20.34</var>spending by the local government due to a state or federal transportation project or other <br/>
<a id="pl.20.35"></a><var>20.35</var>state or federal capital project. This authority may only be used if the project is not a <br/>
<a id="pl.20.36"></a><var>20.36</var>local government initiative;<br/>
<a id="pl.21.1"></a><var>21.1</var>    (14) to pay for court administration costs as required under section 
         <statute_ref>273.1398, <br/>
<a id="pl.21.2"></a><var>21.2</var>subdivision 4b
         </statute_ref>, less the (i) county's share of transferred fines and fees collected by the <br/>
<a id="pl.21.3"></a><var>21.3</var>district courts in the county for calendar year 2001 and (ii) the aid amount certified to be <br/>
<a id="pl.21.4"></a><var>21.4</var>paid to the county in 2004 under section 
         <statute_ref>273.1398, subdivision 4c</statute_ref>; however, for taxes <br/>
<a id="pl.21.5"></a><var>21.5</var>levied to pay for these costs in the year in which the court financing is transferred to the <br/>
<a id="pl.21.6"></a><var>21.6</var>state, the amount under this clause is limited to the amount of aid the county is certified to <br/>
<a id="pl.21.7"></a><var>21.7</var>receive under section 
         <statute_ref>273.1398, subdivision 4a</statute_ref>;<br/>
<a id="pl.21.8"></a><var>21.8</var>    (15) to fund a police or firefighters relief association as required under section 
         <statute_ref>69.77</statute_ref> <br/>
<a id="pl.21.9"></a><var>21.9</var>to the extent that the required amount exceeds the amount levied for this purpose in 2001;<br/>
<a id="pl.21.10"></a><var>21.10</var>    (16) for purposes of a storm sewer improvement district under section 
         <statute_ref>444.20</statute_ref>; and<br/>
<a id="pl.21.11"></a><var>21.11</var>    (17) to pay for the maintenance and support of a city or county society for the <br/>
<a id="pl.21.12"></a><var>21.12</var>prevention of cruelty to animals under section 
         <statute_ref>343.11</statute_ref>. If the city or county uses this <br/>
<a id="pl.21.13"></a><var>21.13</var>special levy, any amount levied by the city or county in the previous levy year for the <br/>
<a id="pl.21.14"></a><var>21.14</var>purposes specified in this clause and included in the city's or county's previous year's levy <br/>
<a id="pl.21.15"></a><var>21.15</var>limit computed under section 
         <statute_ref>275.71</statute_ref>, must be deducted from the levy limit base under <br/>
<a id="pl.21.16"></a><var>21.16</var>section 
         <statute_ref>275.71, subdivision 2</statute_ref>, in determining the city's or county's current year levy limit.; <br/>
<a id="pl.21.17"></a><var>21.17</var>    (18) for counties, to pay for the increase in their share of health and human service <br/>
<a id="pl.21.18"></a><var>21.18</var>costs caused by reductions in federal health and human services grants effective after <br/>
<a id="pl.21.19"></a><var>21.19</var>September 30, 2007;<br/>
<a id="pl.21.20"></a><var>21.20</var>    (19) for a city, for the costs reasonably and necessarily incurred for securing, <br/>
<a id="pl.21.21"></a><var>21.21</var>maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by <br/>
<a id="pl.21.22"></a><var>21.22</var>the commissioner of revenue under section 275.74, subdivision 2. A city must have either <br/>
<a id="pl.21.23"></a><var>21.23</var>(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in <br/>
<a id="pl.21.24"></a><var>21.24</var>the city or in a zip code area of the city that is at least 50 percent higher than the average <br/>
<a id="pl.21.25"></a><var>21.25</var>foreclosure rate in the metropolitan area, as defined in Minnesota Statutes section 473.121, <br/>
<a id="pl.21.26"></a><var>21.26</var>subdivision 2, to use this special levy. For purposes of this paragraph, "foreclosure rate" <br/>
<a id="pl.21.27"></a><var>21.27</var>means the number of foreclosures, as indicated by sheriff sales records, divided by the <br/>
<a id="pl.21.28"></a><var>21.28</var>number of households in the city in 2007;<br/>
<a id="pl.21.29"></a><var>21.29</var>    (20) for a city, for the unreimbursed costs of redeployed traffic control agents and <br/>
<a id="pl.21.30"></a><var>21.30</var>lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified <br/>
<a id="pl.21.31"></a><var>21.31</var>to the Federal Highway Administration;<br/>
<a id="pl.21.32"></a><var>21.32</var>    (21) to pay costs attributable to wages and benefits for sheriff, police, and fire <br/>
<a id="pl.21.33"></a><var>21.33</var>personnel. If a local governmental unit did not use this special levy in the previous year its <br/>
<a id="pl.21.34"></a><var>21.34</var>levy limit base under section 275.71 shall be reduced by the amount equal to the amount it <br/>
<a id="pl.21.35"></a><var>21.35</var>levied for the purposes specified in this clause in the previous year; and<br/>
<a id="pl.22.1"></a><var>22.1</var>    (22) an amount equal to any reductions in the certified aids or credits payable <br/>
<a id="pl.22.2"></a><var>22.2</var>under sections 477A.011 to 477A.014, and section 273.1384, due to unallotment under <br/>
<a id="pl.22.3"></a><var>22.3</var>section 16A.152. The amount of the levy allowed under this clause is equal to the amount <br/>
<a id="pl.22.4"></a><var>22.4</var>unallotted in the calendar year in which the tax is levied unless the unallotment amount is <br/>
<a id="pl.22.5"></a><var>22.5</var>not known by September 1 of the levy year, in which case the unallotment amount may <br/>
<a id="pl.22.6"></a><var>22.6</var>be levied in the following year.<br/>
<a id="pl.22.7"></a><var>22.7</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in calendar year 2008 <br/>
<a id="pl.22.8"></a><var>22.8</var>and thereafter, payable in 2009 and thereafter.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.22.9"></a><var>22.9</var>    Sec. 2. Minnesota Statutes 2006, section 275.70, is amended by adding a subdivision <br/>
<a id="pl.22.10"></a><var>22.10</var>to read:<br/>
<a id="pl.22.11"></a><var>22.11</var>    Subd. 6. <b>Levy aid base.</b> "Levy aid base" for a local governmental unit for a levy <br/>
<a id="pl.22.12"></a><var>22.12</var>year means its total levy spread on net tax capacity, minus any amounts that would <br/>
<a id="pl.22.13"></a><var>22.13</var>qualify as a special levy under section 275.70, plus the sum of (1) the total amount of <br/>
<a id="pl.22.14"></a><var>22.14</var>aids and reimbursements that the local governmental unit is certified to receive under <br/>
<a id="pl.22.15"></a><var>22.15</var>sections 
<statute_ref>477A.011</statute_ref> to 
<statute_ref>477A.014</statute_ref> in the same year, (2) taconite aids under sections 
<statute_ref>298.28</statute_ref> <br/>
<a id="pl.22.16"></a><var>22.16</var>and 
<statute_ref>298.282 </statute_ref> in the same year, including any aid which was required to be placed in a <br/>
<a id="pl.22.17"></a><var>22.17</var>special fund for expenditure in the next succeeding year, and (3) payments to the local <br/>
<a id="pl.22.18"></a><var>22.18</var>governmental unit under section 
<statute_ref>272.029</statute_ref> in the same year, adjusted for any error in <br/>
<a id="pl.22.19"></a><var>22.19</var>estimation in the preceding year.<br/>
<a id="pl.22.20"></a><var>22.20</var><b>EFFECTIVE DATE.</b>This section is effective for levies certified in calendar year <br/>
<a id="pl.22.21"></a><var>22.21</var>2008, payable in calendar year 2009 and thereafter.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.22.22"></a><var>22.22</var>    Sec. 3. Minnesota Statutes 2006, section 275.71, is amended to read:<br/>
<a id="pl.22.23"></a><var>22.23</var><b>275.71 LEVY LIMITS.</b><br/>
<a id="pl.22.24"></a><var>22.24</var>    Subdivision 1. <b>Limit on levies.</b> Notwithstanding any other provision of law or <br/>
<a id="pl.22.25"></a><var>22.25</var>municipal charter to the contrary which authorize ad valorem taxes in excess of the limits <br/>
<a id="pl.22.26"></a><var>22.26</var>established by sections 
         <statute_ref>275.70</statute_ref> to 
         <statute_ref>275.74</statute_ref>, the provisions of this section apply to local <br/>
<a id="pl.22.27"></a><var>22.27</var>governmental units for all purposes other than those for which special levies and special <br/>
<a id="pl.22.28"></a><var>22.28</var>assessments are made. <br/>
<a id="pl.22.29"></a><var>22.29</var>    Subd. 2. <b>Levy limit base.</b>  (a) The levy limit base for a local governmental unit for <br/>
<a id="pl.22.30"></a><var>22.30</var>taxes levied in 2003 is equal to its adjusted levy limit base in the previous year, subject <br/>
<a id="pl.22.31"></a><var>22.31</var>to any adjustments under section 
<statute_ref>275.72</statute_ref>, plus any aid amounts received in 2003 under <br/>
<a id="pl.22.32"></a><var>22.32</var>section 
<statute_ref>273.138</statute_ref> or 
<statute_ref>273.166</statute_ref>, minus the difference between its levy limit under subdivision <br/>
<a id="pl.22.33"></a><var>22.33</var>5 for taxes levied in 2002 and the amount it actually levied under that subdivision in that <br/>
<a id="pl.23.1"></a><var>23.1</var>year, and certified property tax replacement aid payable in 2003 under section 
<statute_ref>174.242</statute_ref>. <br/>
<a id="pl.23.2"></a><var>23.2</var>2008 is its levy aid base from the previous year, subject to any adjustments under section <br/>
<a id="pl.23.3"></a><var>23.3</var>275.72. For taxes levied in 2009 and 2010, the levy limit base for a local governmental <br/>
<a id="pl.23.4"></a><var>23.4</var>unit is its adjusted levy limit base in the previous year, subject to any adjustments under <br/>
<a id="pl.23.5"></a><var>23.5</var>section 275.72.<br/>
<a id="pl.23.6"></a><var>23.6</var>    Subd. 3. <b>Adjustments for state takeovers.</b> (a) The levy limit base for each local <br/>
<a id="pl.23.7"></a><var>23.7</var>unit of government shall be adjusted to reflect the assumption by the state of financing for <br/>
<a id="pl.23.8"></a><var>23.8</var>certain government functions as indicated in this subdivision.<br/>
<a id="pl.23.9"></a><var>23.9</var>    (b) For a county in a judicial district for which financing has not been transferred <br/>
<a id="pl.23.10"></a><var>23.10</var>to the state by January 1, 2001, the levy limit base for 2001 is permanently reduced by <br/>
<a id="pl.23.11"></a><var>23.11</var>the amount of the county's 2001 budget for court administration costs, as certified under <br/>
<a id="pl.23.12"></a><var>23.12</var>section 
<statute_ref>273.1398, subdivision 4b</statute_ref>, paragraph (b), net of the county's share of transferred <br/>
<a id="pl.23.13"></a><var>23.13</var>fines and fees collected by the district courts in the county for the same budget period. <br/>
<a id="pl.23.14"></a><var>23.14</var>    (c) For a governmental unit which levied a tax in 2000 under section 
<statute_ref>473.388, <br/>
<a id="pl.23.15"></a><var>23.15</var>subdivision 7
</statute_ref>, the levy limit base for 2001 is permanently reduced by an amount equal <br/>
<a id="pl.23.16"></a><var>23.16</var>to the sum of the governmental unit's taxes payable 2001 nondebt transit services levy <br/>
<a id="pl.23.17"></a><var>23.17</var>plus the portion of its 2001 homestead and agricultural credit aid under section 
<statute_ref>273.1398, <br/>
<a id="pl.23.18"></a><var>23.18</var>subdivision 2
</statute_ref>, attributable to nondebt transit services. <br/>
<a id="pl.23.19"></a><var>23.19</var>    (d) For counties in a judicial district in which the state assumed financing of <br/>
<a id="pl.23.20"></a><var>23.20</var>mandated services costs as defined in section 
<statute_ref>480.181, subdivision 4</statute_ref>, on July 1, 2001, the <br/>
<a id="pl.23.21"></a><var>23.21</var>levy limit base for taxes levied in 2001 is permanently reduced by an amount equal to <br/>
<a id="pl.23.22"></a><var>23.22</var>one-half of the aid reduction under section 
<statute_ref>273.1398, subdivision 4a</statute_ref>, paragraph (g). <br/>
<a id="pl.23.23"></a><var>23.23</var>    Subd. 4. <b>Adjusted levy limit base.</b> (a) For taxes levied in 2003 2008 through 2010, <br/>
<a id="pl.23.24"></a><var>23.24</var>the adjusted levy limit base is equal to the levy limit base computed under subdivisions 2 <br/>
<a id="pl.23.25"></a><var>23.25</var>and 3 subdivision 2 or section 
         <statute_ref>275.72</statute_ref>, reduced by 40 percent of the difference between <br/>
<a id="pl.23.26"></a><var>23.26</var>(1) the sum of 2003 certified aid payments, under sections 
<statute_ref>273.138</statute_ref>, 
<statute_ref>273.1398</statute_ref> except for <br/>
<a id="pl.23.27"></a><var>23.27</var>amounts certified under subdivision 4a, paragraph (b), 
<statute_ref>273.166</statute_ref>, 
<statute_ref>477A.011</statute_ref> to 
<statute_ref>477A.03</statute_ref>, <br/>
<a id="pl.23.28"></a><var>23.28</var><statute_ref>477A.06</statute_ref>, and 
<statute_ref>477A.07</statute_ref>, before any reduction under Laws 2003, First Special Session <br/>
<a id="pl.23.29"></a><var>23.29</var>chapter 21, articles 5 and 6, and (2) the sum of the aids paid in 2004 under those same <br/>
<a id="pl.23.30"></a><var>23.30</var>sections, after any reductions in 2004 under Laws 2003, First Special Session chapter 21, <br/>
<a id="pl.23.31"></a><var>23.31</var>articles 5 and 6.  multiplied by:<br/>
<a id="pl.23.32"></a><var>23.32</var>    (1) one plus the lessor of 3.9 percent or the percentage growth in the implicit price <br/>
<a id="pl.23.33"></a><var>23.33</var>deflator;<br/>
<a id="pl.23.34"></a><var>23.34</var>    (2) one plus a percentage equal to 50 percent of the percentage increase in the number <br/>
<a id="pl.23.35"></a><var>23.35</var>of households, if any, for the most recent 12-month period for which data is available; and<br/>
<a id="pl.24.1"></a><var>24.1</var>    (3) one plus a percentage equal to 50 percent of the percentage increase in the <br/>
<a id="pl.24.2"></a><var>24.2</var>taxable market value of the jurisdiction due to new construction of class 3 property, as <br/>
<a id="pl.24.3"></a><var>24.3</var>defined in section 273.13, subdivision 4, except for state-assessed utility and railroad <br/>
<a id="pl.24.4"></a><var>24.4</var>property, for the most recent year for which data is available.<br/>
<a id="pl.24.5"></a><var>24.5</var>    (b) For taxes levied in 2003 only, the adjusted levy limit base is increased by 60 <br/>
<a id="pl.24.6"></a><var>24.6</var>percent of the difference between a jurisdiction's market value credit in 2003 before any <br/>
<a id="pl.24.7"></a><var>24.7</var>reductions under Laws 2003, First Special Session chapter 21, articles 5 and 6, and its <br/>
<a id="pl.24.8"></a><var>24.8</var>market value credit in 2004 after reductions in Laws 2003, First Special Session chapter <br/>
<a id="pl.24.9"></a><var>24.9</var>21, articles 5 and 6.<br/>
<a id="pl.24.10"></a><var>24.10</var>    Subd. 5. <b>Property tax levy limit.</b> For taxes levied in 2003 2008 through 2010, the <br/>
<a id="pl.24.11"></a><var>24.11</var>property tax levy limit for a local governmental unit is equal to its adjusted levy limit <br/>
<a id="pl.24.12"></a><var>24.12</var>base determined under subdivision 4 plus any additional levy authorized under section <br/>
<statute_ref><a id="pl.24.13"></a><var>24.13</var>275.73
         </statute_ref>, which is levied against net tax capacity, reduced by the sum of (i) the total amount <br/>
<a id="pl.24.14"></a><var>24.14</var>of aids and reimbursements that the local governmental unit is certified to receive under <br/>
<a id="pl.24.15"></a><var>24.15</var>sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.014</statute_ref>, except for the increases in city aid bases in calendar <br/>
<a id="pl.24.16"></a><var>24.16</var>year 2002 under section 
<statute_ref>477A.011, subdivision 36</statute_ref>, paragraphs (l), (n), and (o), (ii) <br/>
<a id="pl.24.17"></a><var>24.17</var>homestead and agricultural aids it is certified to receive under section 
<statute_ref>273.1398</statute_ref>, (iii) (ii) <br/>
<a id="pl.24.18"></a><var>24.18</var>taconite aids under sections 
         <statute_ref>298.28</statute_ref> and 
         <statute_ref>298.282</statute_ref> including any aid which was required to <br/>
<a id="pl.24.19"></a><var>24.19</var>be placed in a special fund for expenditure in the next succeeding year, (iv) temporary <br/>
<a id="pl.24.20"></a><var>24.20</var>court aid under section 
<statute_ref>273.1398, subdivision 4a</statute_ref>, and (v) (iii) estimated payments to the <br/>
<a id="pl.24.21"></a><var>24.21</var>local governmental unit under section 
         <statute_ref>272.029</statute_ref>, adjusted for any error in estimation in the <br/>
<a id="pl.24.22"></a><var>24.22</var>preceding year, and (iv) aids under section 477A.16. <br/>
<a id="pl.24.23"></a><var>24.23</var>    Subd. 6. <b>Levies in excess of levy limits.</b> If the levy made by a city or county <br/>
<a id="pl.24.24"></a><var>24.24</var>exceeds the levy limit provided in sections 
         <statute_ref>275.70</statute_ref> to 
         <statute_ref>275.74</statute_ref>, except when the excess <br/>
<a id="pl.24.25"></a><var>24.25</var>levy is due to the rounding of the rate in accordance with section 
         <statute_ref>275.28</statute_ref>, the county <br/>
<a id="pl.24.26"></a><var>24.26</var>auditor shall only extend the amount of taxes permitted under sections 
         <statute_ref>275.70</statute_ref> to 
         <statute_ref>275.74</statute_ref>, <br/>
<a id="pl.24.27"></a><var>24.27</var>as provided for in section 
         <statute_ref>275.16</statute_ref>. <br/>
<a id="pl.24.28"></a><var>24.28</var><b>EFFECTIVE DATE.</b>This section is effective for levies certified in calendar years <br/>
<a id="pl.24.29"></a><var>24.29</var>2008 through 2010, payable in 2009 through 2011.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.24.30"></a><var>24.30</var>    Sec. 4. Minnesota Statutes 2006, section 275.74, subdivision 2, is amended to read:<br/>
<a id="pl.24.31"></a><var>24.31</var>    Subd. 2. <b>Authorization for special levies.</b> (a) A local governmental unit may <br/>
<a id="pl.24.32"></a><var>24.32</var>request authorization to levy for unreimbursed costs for natural disasters under section <br/>
<statute_ref><a id="pl.24.33"></a><var>24.33</var>275.70, subdivision 5
         </statute_ref>, clause (7). The local governmental unit shall submit a request to <br/>
<a id="pl.24.34"></a><var>24.34</var>levy under section 
         <statute_ref>275.70, subdivision 5</statute_ref>, clause (7), to the commissioner of revenue by <br/>
<a id="pl.25.1"></a><var>25.1</var>September 30 of the levy year and the request must include information documenting the <br/>
<a id="pl.25.2"></a><var>25.2</var>estimated unreimbursed costs. The commissioner of revenue may grant levy authority, <br/>
<a id="pl.25.3"></a><var>25.3</var>up to the amount requested based on the documentation submitted. All decisions of the <br/>
<a id="pl.25.4"></a><var>25.4</var>commissioner are final. <br/>
<a id="pl.25.5"></a><var>25.5</var>    (b) A city may request authorization to levy for reasonable and necessary costs for <br/>
<a id="pl.25.6"></a><var>25.6</var>securing, maintaining, or demolishing foreclosed or abandoned residential properties <br/>
<a id="pl.25.7"></a><var>25.7</var>under section 
<statute_ref>275.70, subdivision 5</statute_ref>, clause (19). The local governmental unit shall submit <br/>
<a id="pl.25.8"></a><var>25.8</var>a request to levy under section 
<statute_ref>275.70, subdivision 5</statute_ref>, clause (19), to the commissioner <br/>
<a id="pl.25.9"></a><var>25.9</var>of revenue by September 30 of the levy year and the request must include information <br/>
<a id="pl.25.10"></a><var>25.10</var>documenting the estimated costs. For taxes payable in 2009, the amount may include <br/>
<a id="pl.25.11"></a><var>25.11</var>unanticipated costs incurred above the amount budgeted for these purposes in 2008. Costs <br/>
<a id="pl.25.12"></a><var>25.12</var>of securing foreclosed or abandoned residential properties include payment for police and <br/>
<a id="pl.25.13"></a><var>25.13</var>fire department services. The commissioner of revenue may grant levy authority, up to the <br/>
<a id="pl.25.14"></a><var>25.14</var>lesser of (1) the amount requested based on the documentation submitted, or (2) $3,000 <br/>
<a id="pl.25.15"></a><var>25.15</var>multiplied by the number of foreclosed residential properties, as defined by sheriff sales <br/>
<a id="pl.25.16"></a><var>25.16</var>records, in calendar year 2007. All decisions of the commissioner are final.<br/>
<a id="pl.25.17"></a><var>25.17</var><b>EFFECTIVE DATE.</b>This section is effective for levies certified in 2008 through <br/>
<a id="pl.25.18"></a><var>25.18</var>2010, payable in 2009 through 2011.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.25.19"></a><var>25.19</var>    Sec. 5. <b>[275.76] MAINTENANCE OF EFFORT AND MATCHING </b><br/>
<a id="pl.25.20"></a><var>25.20</var><b>REQUIREMENTS SUSPENDED.</b><br/>
<a id="pl.25.21"></a><var>25.21</var>    Notwithstanding any law to the contrary, all maintenance of effort and matching <br/>
<a id="pl.25.22"></a><var>25.22</var>fund requirements for counties, including, but not limited to, those under sections <br/>
<a id="pl.25.23"></a><var>25.23</var>116L.872, 119B.11, 134.34, 145A.131, 145.882, 242.39, 245.4835, 245.714, 254B.02, <br/>
<a id="pl.25.24"></a><var>25.24</var>254B.03, 256B.0625, 256F.10, and 256F.13, are suspended for the taxes payable years that <br/>
<a id="pl.25.25"></a><var>25.25</var>levy limits are in effect.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.25.28"></a><var>25.28</var>    Section 1. Minnesota Statutes 2006, section 289A.19, subdivision 2, is amended to <br/>
<a id="pl.25.29"></a><var>25.29</var>read:<br/>
<a id="pl.25.30"></a><var>25.30</var>    Subd. 2. <b>Corporate franchise and mining company taxes.</b> Corporations or mining <br/>
<a id="pl.25.31"></a><var>25.31</var>companies shall receive an extension of seven months or the amount of time granted by <br/>
<a id="pl.25.32"></a><var>25.32</var>the Internal Revenue Service, whichever is longer, for filing the return of a corporation <br/>
<a id="pl.25.33"></a><var>25.33</var>subject to tax under chapter 290 or for filing the return of a mining company subject to <br/>
<a id="pl.25.34"></a><var>25.34</var>tax under sections 
         <statute_ref>298.01</statute_ref> and 
         <statute_ref>298.015</statute_ref>. Interest on any balance of tax not paid when the <br/>
<a id="pl.26.1"></a><var>26.1</var>regularly required return is due must be paid at the rate specified in section 
         <statute_ref>270C.40</statute_ref>, <br/>
<a id="pl.26.2"></a><var>26.2</var>from the date such payment should have been made if no extension was granted, until <br/>
<a id="pl.26.3"></a><var>26.3</var>the date of payment of such tax.<br/>
<a id="pl.26.4"></a><var>26.4</var>    If a corporation or mining company does not:<br/>
<a id="pl.26.5"></a><var>26.5</var>    (1) pay at least 90 percent of the amount of tax shown on the return on or before the <br/>
<a id="pl.26.6"></a><var>26.6</var>regular due date of the return, the penalty prescribed by section 
         <statute_ref>289A.60, subdivision 1</statute_ref>, <br/>
<a id="pl.26.7"></a><var>26.7</var>shall be imposed on the unpaid balance of tax; or<br/>
<a id="pl.26.8"></a><var>26.8</var>    (2) pay the balance due shown on the regularly required return on or before the <br/>
<a id="pl.26.9"></a><var>26.9</var>extended due date of the return, the penalty prescribed by section 
         <statute_ref>289A.60, subdivision 1</statute_ref>, <br/>
<a id="pl.26.10"></a><var>26.10</var>shall be imposed on the unpaid balance of tax from the original due date of the return.<br/>
<a id="pl.26.11"></a><var>26.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.26.12"></a><var>26.12</var>and applies to any federal extension that allows filing after that date.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.26.13"></a><var>26.13</var>    Sec. 2. Minnesota Statutes 2006, section 289A.19, is amended by adding a subdivision <br/>
<a id="pl.26.14"></a><var>26.14</var>to read:<br/>
<a id="pl.26.15"></a><var>26.15</var>    Subd. 7. <b>Federal extensions.</b> When an extension of time to file a partnership or <br/>
<a id="pl.26.16"></a><var>26.16</var>S corporation tax return is granted by the Internal Revenue Service, the commissioner <br/>
<a id="pl.26.17"></a><var>26.17</var>shall grant an automatic extension to file the comparable Minnesota return for that period. <br/>
<a id="pl.26.18"></a><var>26.18</var>An extension granted under this subdivision does not affect the due date for making <br/>
<a id="pl.26.19"></a><var>26.19</var>payments of tax.<br/>
<a id="pl.26.20"></a><var>26.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.26.21"></a><var>26.21</var>and applies to any federal extension that allows filing after that date.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.26.22"></a><var>26.22</var>    Sec. 3. Minnesota Statutes 2006, section 290.01, subdivision 6b, is amended to read:<br/>
<a id="pl.26.23"></a><var>26.23</var>    Subd. 6b. <b>Foreign operating corporation.</b> The term "foreign operating <br/>
<a id="pl.26.24"></a><var>26.24</var>corporation," when applied to a corporation, means a domestic corporation with the <br/>
<a id="pl.26.25"></a><var>26.25</var>following characteristics:<br/>
<a id="pl.26.26"></a><var>26.26</var>    (1) it is part of a unitary business at least one member of which is taxable in this state;<br/>
<a id="pl.26.27"></a><var>26.27</var>    (2) it is not a foreign sales corporation under section 922 of the Internal Revenue <br/>
<a id="pl.26.28"></a><var>26.28</var>Code, as amended through December 31, 1999, for the taxable year;<br/>
<a id="pl.26.29"></a><var>26.29</var>    (3) it is not an interest charge domestic international sales corporation under sections <br/>
<a id="pl.26.30"></a><var>26.30</var>992, 993, 994, and 995 of the Internal Revenue Code;<br/>
<a id="pl.26.31"></a><var>26.31</var>     (4) either (i) the average of the percentages of its property and payrolls, including <br/>
<a id="pl.26.32"></a><var>26.32</var>the pro rata share of its unitary partnerships' property and payrolls, assigned to locations <br/>
<a id="pl.26.33"></a><var>26.33</var>outside the United States, where the United States includes the District of Columbia and <br/>
<a id="pl.26.34"></a><var>26.34</var>excludes the commonwealth of Puerto Rico and possessions of the United States, as <br/>
<a id="pl.27.1"></a><var>27.1</var>determined under section 
<statute_ref>290.191</statute_ref> or 
<statute_ref>290.20</statute_ref>, is 80 percent or more; or (ii) it has in effect a <br/>
<a id="pl.27.2"></a><var>27.2</var>valid election under section 936 of the Internal Revenue Code; or (ii) at least 80 percent <br/>
<a id="pl.27.3"></a><var>27.3</var>of the gross income from all sources of the corporation in the tax year is active foreign <br/>
<a id="pl.27.4"></a><var>27.4</var>business income; and<br/>
<a id="pl.27.5"></a><var>27.5</var>    (4) it has $1,000,000 of payroll and $2,000,000 of property, as determined under <br/>
<a id="pl.27.6"></a><var>27.6</var>section 
<statute_ref>290.191</statute_ref> or 
<statute_ref>290.20</statute_ref>, that are located outside the United States. If the domestic <br/>
<a id="pl.27.7"></a><var>27.7</var>corporation does not have payroll as determined under section 
<statute_ref>290.191</statute_ref> or 
<statute_ref>290.20</statute_ref>, but it <br/>
<a id="pl.27.8"></a><var>27.8</var>or its partnerships have paid $1,000,000 for work, performed directly for the domestic <br/>
<a id="pl.27.9"></a><var>27.9</var>corporation or the partnerships, outside the United States, then paragraph (3)(i) shall not <br/>
<a id="pl.27.10"></a><var>27.10</var>require payrolls to be included in the average calculation<br/>
<a id="pl.27.11"></a><var>27.11</var>    (5) for purposes of this subdivision, active foreign business income means gross <br/>
<a id="pl.27.12"></a><var>27.12</var>income that is (i) derived from sources without the United States, as defined in subtitle A, <br/>
<a id="pl.27.13"></a><var>27.13</var>chapter 1, subchapter N, part 1, of the Internal Revenue Code; and (ii) attributable to the <br/>
<a id="pl.27.14"></a><var>27.14</var>active conduct of a trade or business in a foreign country.<br/>
<a id="pl.27.15"></a><var>27.15</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.27.16"></a><var>27.16</var>December 31, 2007.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.27.17"></a><var>27.17</var>    Sec. 4. Minnesota Statutes 2007 Supplement, section 290.01, subdivision 19b, as <br/>
<a id="pl.27.18"></a><var>27.18</var>amended by Laws 2008, chapter 154, article 3, section 3, is amended to read:<br/>
<a id="pl.27.19"></a><var>27.19</var>    Subd. 19b.  <b>Subtractions from federal taxable income.</b> For individuals, estates, <br/>
<a id="pl.27.20"></a><var>27.20</var>and trusts, there shall be subtracted from federal taxable income: <br/>
<a id="pl.27.21"></a><var>27.21</var>    (1) net interest income on obligations of any authority, commission, or <br/>
<a id="pl.27.22"></a><var>27.22</var>instrumentality of the United States to the extent includable in taxable income for federal <br/>
<a id="pl.27.23"></a><var>27.23</var>income tax purposes but exempt from state income tax under the laws of the United States; <br/>
<a id="pl.27.24"></a><var>27.24</var>    (2) if included in federal taxable income, the amount of any overpayment of income <br/>
<a id="pl.27.25"></a><var>27.25</var>tax to Minnesota or to any other state, for any previous taxable year, whether the amount <br/>
<a id="pl.27.26"></a><var>27.26</var>is received as a refund or as a credit to another taxable year's income tax liability; <br/>
<a id="pl.27.27"></a><var>27.27</var>    (3) the amount paid to others, less the amount used to claim the credit allowed under <br/>
<a id="pl.27.28"></a><var>27.28</var>section 
         <statute_ref>290.0674</statute_ref>, not to exceed $1,625 for each qualifying child in grades kindergarten <br/>
<a id="pl.27.29"></a><var>27.29</var>to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and <br/>
<a id="pl.27.30"></a><var>27.30</var>transportation of each qualifying child in attending an elementary or secondary school <br/>
<a id="pl.27.31"></a><var>27.31</var>situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a <br/>
<a id="pl.27.32"></a><var>27.32</var>resident of this state may legally fulfill the state's compulsory attendance laws, which <br/>
<a id="pl.27.33"></a><var>27.33</var>is not operated for profit, and which adheres to the provisions of the Civil Rights Act <br/>
<a id="pl.27.34"></a><var>27.34</var>of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or <br/>
<a id="pl.27.35"></a><var>27.35</var>tuition as defined in section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (1). As used in this clause, <br/>
<a id="pl.28.1"></a><var>28.1</var>"textbooks" includes books and other instructional materials and equipment purchased <br/>
<a id="pl.28.2"></a><var>28.2</var>or leased for use in elementary and secondary schools in teaching only those subjects <br/>
<a id="pl.28.3"></a><var>28.3</var>legally and commonly taught in public elementary and secondary schools in this state. <br/>
<a id="pl.28.4"></a><var>28.4</var>Equipment expenses qualifying for deduction includes expenses as defined and limited in <br/>
<a id="pl.28.5"></a><var>28.5</var>section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (3). "Textbooks" does not include instructional <br/>
<a id="pl.28.6"></a><var>28.6</var>books and materials used in the teaching of religious tenets, doctrines, or worship, the <br/>
<a id="pl.28.7"></a><var>28.7</var>purpose of which is to instill such tenets, doctrines, or worship, nor does it include books <br/>
<a id="pl.28.8"></a><var>28.8</var>or materials for, or transportation to, extracurricular activities including sporting events, <br/>
<a id="pl.28.9"></a><var>28.9</var>musical or dramatic events, speech activities, driver's education, or similar programs. For <br/>
<a id="pl.28.10"></a><var>28.10</var>purposes of the subtraction provided by this clause, "qualifying child" has the meaning <br/>
<a id="pl.28.11"></a><var>28.11</var>given in section 32(c)(3) of the Internal Revenue Code; <br/>
<a id="pl.28.12"></a><var>28.12</var>    (4) income as provided under section 
         <statute_ref>290.0802</statute_ref>; <br/>
<a id="pl.28.13"></a><var>28.13</var>    (5) to the extent included in federal adjusted gross income, income realized on <br/>
<a id="pl.28.14"></a><var>28.14</var>disposition of property exempt from tax under section 
         <statute_ref>290.491</statute_ref>; <br/>
<a id="pl.28.15"></a><var>28.15</var>    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) <br/>
<a id="pl.28.16"></a><var>28.16</var>of the Internal Revenue Code in determining federal taxable income by an individual <br/>
<a id="pl.28.17"></a><var>28.17</var>who does not itemize deductions for federal income tax purposes for the taxable year, an <br/>
<a id="pl.28.18"></a><var>28.18</var>amount equal to 50 percent of the excess of charitable contributions over $500 allowable <br/>
<a id="pl.28.19"></a><var>28.19</var>as a deduction for the taxable year under section 170(a) of the Internal Revenue Code and <br/>
<a id="pl.28.20"></a><var>28.20</var>under the provisions of Public Law 109-1; <br/>
<a id="pl.28.21"></a><var>28.21</var>    (7) for taxable years beginning before January 1, 2008, the amount of the federal <br/>
<a id="pl.28.22"></a><var>28.22</var>small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code <br/>
<a id="pl.28.23"></a><var>28.23</var>which is included in gross income under section 87 of the Internal Revenue Code; <br/>
<a id="pl.28.24"></a><var>28.24</var>    (8) for individuals who are allowed a federal foreign tax credit for taxes that do not <br/>
<a id="pl.28.25"></a><var>28.25</var>qualify for a credit under section 
         <statute_ref>290.06, subdivision 22</statute_ref>, an amount equal to the carryover <br/>
<a id="pl.28.26"></a><var>28.26</var>of subnational foreign taxes for the taxable year, but not to exceed the total subnational <br/>
<a id="pl.28.27"></a><var>28.27</var>foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, <br/>
<a id="pl.28.28"></a><var>28.28</var>"federal foreign tax credit" means the credit allowed under section 27 of the Internal <br/>
<a id="pl.28.29"></a><var>28.29</var>Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed <br/>
<a id="pl.28.30"></a><var>28.30</var>under section 904(c) of the Internal Revenue Code minus national level foreign taxes to <br/>
<a id="pl.28.31"></a><var>28.31</var>the extent they exceed the federal foreign tax credit; <br/>
<a id="pl.28.32"></a><var>28.32</var>    (9) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.28.33"></a><var>28.33</var>addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case <br/>
<a id="pl.28.34"></a><var>28.34</var>of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth <br/>
<a id="pl.28.35"></a><var>28.35</var>of the delayed depreciation. For purposes of this clause, "delayed depreciation" means <br/>
<a id="pl.28.36"></a><var>28.36</var>the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or <br/>
<a id="pl.29.1"></a><var>29.1</var>subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the <br/>
<a id="pl.29.2"></a><var>29.2</var>positive value of any net operating loss under section 172 of the Internal Revenue Code <br/>
<a id="pl.29.3"></a><var>29.3</var>generated for the tax year of the addition. The resulting delayed depreciation cannot be <br/>
<a id="pl.29.4"></a><var>29.4</var>less than zero; <br/>
<a id="pl.29.5"></a><var>29.5</var>    (10) job opportunity building zone income as provided under section 
         <statute_ref>469.316</statute_ref>; <br/>
<a id="pl.29.6"></a><var>29.6</var>    (11) to the extent included in federal taxable income, the amount of compensation <br/>
<a id="pl.29.7"></a><var>29.7</var>paid to members of the Minnesota National Guard or other reserve components of the <br/>
<a id="pl.29.8"></a><var>29.8</var>United States military for active service performed in Minnesota, excluding compensation <br/>
<a id="pl.29.9"></a><var>29.9</var>for services performed under the Active Guard Reserve (AGR) program. For purposes of <br/>
<a id="pl.29.10"></a><var>29.10</var>this clause, "active service" means (i) state active service as defined in section 
         <statute_ref>190.05, <br/>
<a id="pl.29.11"></a><var>29.11</var>subdivision 5a
         </statute_ref>, clause (1); (ii) federally funded state active service as defined in section <br/>
<statute_ref><a id="pl.29.12"></a><var>29.12</var>190.05, subdivision 5b
         </statute_ref>; or (iii) federal active service as defined in section 
         <statute_ref>190.05, <br/>
<a id="pl.29.13"></a><var>29.13</var>subdivision 5c
         </statute_ref>, but "active service" excludes services performed exclusively for purposes <br/>
<a id="pl.29.14"></a><var>29.14</var>of basic combat training, advanced individual training, annual training, and periodic <br/>
<a id="pl.29.15"></a><var>29.15</var>inactive duty training; special training periodically made available to reserve members; <br/>
<a id="pl.29.16"></a><var>29.16</var>and service performed in accordance with section 
         <statute_ref>190.08, subdivision 3</statute_ref>; <br/>
<a id="pl.29.17"></a><var>29.17</var>    (12) to the extent included in federal taxable income, the amount of compensation <br/>
<a id="pl.29.18"></a><var>29.18</var>paid to Minnesota residents who are members of the armed forces of the United States or <br/>
<a id="pl.29.19"></a><var>29.19</var>United Nations for active duty performed outside Minnesota under United States Code, <br/>
<a id="pl.29.20"></a><var>29.20</var>title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of <br/>
<a id="pl.29.21"></a><var>29.21</var>the United Nations; <br/>
<a id="pl.29.22"></a><var>29.22</var>    (13) an amount, not to exceed $10,000, equal to qualified expenses related to a <br/>
<a id="pl.29.23"></a><var>29.23</var>qualified donor's donation, while living, of one or more of the qualified donor's organs <br/>
<a id="pl.29.24"></a><var>29.24</var>to another person for human organ transplantation. For purposes of this clause, "organ" <br/>
<a id="pl.29.25"></a><var>29.25</var>means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; <br/>
<a id="pl.29.26"></a><var>29.26</var>"human organ transplantation" means the medical procedure by which transfer of a human <br/>
<a id="pl.29.27"></a><var>29.27</var>organ is made from the body of one person to the body of another person; "qualified <br/>
<a id="pl.29.28"></a><var>29.28</var>expenses" means unreimbursed expenses for both the individual and the qualified donor <br/>
<a id="pl.29.29"></a><var>29.29</var>for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses <br/>
<a id="pl.29.30"></a><var>29.30</var>may be subtracted under this clause only once; and "qualified donor" means the individual <br/>
<a id="pl.29.31"></a><var>29.31</var>or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An <br/>
<a id="pl.29.32"></a><var>29.32</var>individual may claim the subtraction in this clause for each instance of organ donation for <br/>
<a id="pl.29.33"></a><var>29.33</var>transplantation during the taxable year in which the qualified expenses occur; <br/>
<a id="pl.29.34"></a><var>29.34</var>    (14) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.29.35"></a><var>29.35</var>addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a <br/>
<a id="pl.29.36"></a><var>29.36</var>shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the <br/>
<a id="pl.30.1"></a><var>30.1</var>addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the <br/>
<a id="pl.30.2"></a><var>30.2</var>case of a shareholder of a corporation that is an S corporation, minus the positive value of <br/>
<a id="pl.30.3"></a><var>30.3</var>any net operating loss under section 172 of the Internal Revenue Code generated for the <br/>
<a id="pl.30.4"></a><var>30.4</var>tax year of the addition. If the net operating loss exceeds the addition for the tax year, a <br/>
<a id="pl.30.5"></a><var>30.5</var>subtraction is not allowed under this clause; <br/>
<a id="pl.30.6"></a><var>30.6</var>    (15) to the extent included in federal taxable income, compensation paid to a <br/>
<a id="pl.30.7"></a><var>30.7</var>nonresident who is a service member as defined in United States Code, title 10, section <br/>
<a id="pl.30.8"></a><var>30.8</var>101(a)(5), for military service as defined in the Service Member Civil Relief Act, Public <br/>
<a id="pl.30.9"></a><var>30.9</var>Law 108-189, section 101(2); and <br/>
<a id="pl.30.10"></a><var>30.10</var>    (16) international economic development zone income as provided under section <br/>
<statute_ref><a id="pl.30.11"></a><var>30.11</var>469.325
         </statute_ref>; and<br/>
<a id="pl.30.12"></a><var>30.12</var>    (17) to the extent included in federal taxable income, the amount of national service <br/>
<a id="pl.30.13"></a><var>30.13</var>educational awards received from the National Service Trust under United States Code, <br/>
<a id="pl.30.14"></a><var>30.14</var>title 42, sections 12601 to 12604, for service in an approved Americorps National Service <br/>
<a id="pl.30.15"></a><var>30.15</var>program. <br/>
<a id="pl.30.16"></a><var>30.16</var><b>EFFECTIVE DATE.</b>This section is effective for tax years beginning after <br/>
<a id="pl.30.17"></a><var>30.17</var>December 31, 2008, except clause (17) is effective for tax years beginning after December <br/>
<a id="pl.30.18"></a><var>30.18</var>31, 2007.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.30.19"></a><var>30.19</var>    Sec. 5. Minnesota Statutes 2006, section 290.01, subdivision 19c, as amended by Laws <br/>
<a id="pl.30.20"></a><var>30.20</var>2008, chapter 154, article 3, section 4, is amended to read:<br/>
<a id="pl.30.21"></a><var>30.21</var>    Subd. 19c.  <b>Corporations; additions to federal taxable income.</b> For corporations, <br/>
<a id="pl.30.22"></a><var>30.22</var>there shall be added to federal taxable income: <br/>
<a id="pl.30.23"></a><var>30.23</var>    (1) the amount of any deduction taken for federal income tax purposes for income, <br/>
<a id="pl.30.24"></a><var>30.24</var>excise, or franchise taxes based on net income or related minimum taxes, including but not <br/>
<a id="pl.30.25"></a><var>30.25</var>limited to the tax imposed under section 
         <statute_ref>290.0922</statute_ref>, paid by the corporation to Minnesota, <br/>
<a id="pl.30.26"></a><var>30.26</var>another state, a political subdivision of another state, the District of Columbia, or any <br/>
<a id="pl.30.27"></a><var>30.27</var>foreign country or possession of the United States; <br/>
<a id="pl.30.28"></a><var>30.28</var>    (2) interest not subject to federal tax upon obligations of: the United States, its <br/>
<a id="pl.30.29"></a><var>30.29</var>possessions, its agencies, or its instrumentalities; the state of Minnesota or any other <br/>
<a id="pl.30.30"></a><var>30.30</var>state, any of its political or governmental subdivisions, any of its municipalities, or any <br/>
<a id="pl.30.31"></a><var>30.31</var>of its governmental agencies or instrumentalities; the District of Columbia; or Indian <br/>
<a id="pl.30.32"></a><var>30.32</var>tribal governments; <br/>
<a id="pl.30.33"></a><var>30.33</var>    (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal <br/>
<a id="pl.30.34"></a><var>30.34</var>Revenue Code; <br/>
<a id="pl.31.1"></a><var>31.1</var>    (4) the amount of any net operating loss deduction taken for federal income tax <br/>
<a id="pl.31.2"></a><var>31.2</var>purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss <br/>
<a id="pl.31.3"></a><var>31.3</var>deduction under section 810 of the Internal Revenue Code; <br/>
<a id="pl.31.4"></a><var>31.4</var>    (5) the amount of any special deductions taken for federal income tax purposes <br/>
<a id="pl.31.5"></a><var>31.5</var>under sections 241 to 247 and 965 of the Internal Revenue Code; <br/>
<a id="pl.31.6"></a><var>31.6</var>    (6) losses from the business of mining, as defined in section 
         <statute_ref>290.05, subdivision 1</statute_ref>, <br/>
<a id="pl.31.7"></a><var>31.7</var>clause (a), that are not subject to Minnesota income tax; <br/>
<a id="pl.31.8"></a><var>31.8</var>    (7) the amount of any capital losses deducted for federal income tax purposes under <br/>
<a id="pl.31.9"></a><var>31.9</var>sections 1211 and 1212 of the Internal Revenue Code; <br/>
<a id="pl.31.10"></a><var>31.10</var>    (8) the exempt foreign trade income of a foreign sales corporation under sections <br/>
<a id="pl.31.11"></a><var>31.11</var>921(a) and 291 of the Internal Revenue Code; <br/>
<a id="pl.31.12"></a><var>31.12</var>    (9) the amount of percentage depletion deducted under sections 611 through 614 and <br/>
<a id="pl.31.13"></a><var>31.13</var>291 of the Internal Revenue Code; <br/>
<a id="pl.31.14"></a><var>31.14</var>    (10) for certified pollution control facilities placed in service in a taxable year <br/>
<a id="pl.31.15"></a><var>31.15</var>beginning before December 31, 1986, and for which amortization deductions were elected <br/>
<a id="pl.31.16"></a><var>31.16</var>under section 169 of the Internal Revenue Code of 1954, as amended through December <br/>
<a id="pl.31.17"></a><var>31.17</var>31, 1985, the amount of the amortization deduction allowed in computing federal taxable <br/>
<a id="pl.31.18"></a><var>31.18</var>income for those facilities; <br/>
<a id="pl.31.19"></a><var>31.19</var>    (11) the amount of any deemed dividend from a foreign operating corporation <br/>
<a id="pl.31.20"></a><var>31.20</var>determined pursuant to section 
         <statute_ref>290.17, subdivision 4</statute_ref>, paragraph (g). The deemed dividend <br/>
<a id="pl.31.21"></a><var>31.21</var>shall be reduced by the amount of the addition to income required by clauses (20), (21), <br/>
<a id="pl.31.22"></a><var>31.22</var>(22), and (23); <br/>
<a id="pl.31.23"></a><var>31.23</var>    (12) the amount of a partner's pro rata share of net income which does not flow <br/>
<a id="pl.31.24"></a><var>31.24</var>through to the partner because the partnership elected to pay the tax on the income under <br/>
<a id="pl.31.25"></a><var>31.25</var>section 6242(a)(2) of the Internal Revenue Code; <br/>
<a id="pl.31.26"></a><var>31.26</var>    (13) the amount of net income excluded under section 114 of the Internal Revenue <br/>
<a id="pl.31.27"></a><var>31.27</var>Code; <br/>
<a id="pl.31.28"></a><var>31.28</var>    (14) any increase in subpart F income, as defined in section 952(a) of the Internal <br/>
<a id="pl.31.29"></a><var>31.29</var>Revenue Code, for the taxable year when subpart F income is calculated without regard <br/>
<a id="pl.31.30"></a><var>31.30</var>to the provisions of section 103 of Public Law 109-222; <br/>
<a id="pl.31.31"></a><var>31.31</var>    (15) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A) <br/>
<a id="pl.31.32"></a><var>31.32</var>and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer <br/>
<a id="pl.31.33"></a><var>31.33</var>has an activity that in the taxable year generates a deduction for depreciation under <br/>
<a id="pl.31.34"></a><var>31.34</var>section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year <br/>
<a id="pl.31.35"></a><var>31.35</var>that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed <br/>
<a id="pl.31.36"></a><var>31.36</var>under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the <br/>
<a id="pl.32.1"></a><var>32.1</var>depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the <br/>
<a id="pl.32.2"></a><var>32.2</var>amount of the loss from the activity that is not allowed in the taxable year. In succeeding <br/>
<a id="pl.32.3"></a><var>32.3</var>taxable years when the losses not allowed in the taxable year are allowed, the depreciation <br/>
<a id="pl.32.4"></a><var>32.4</var>under section 168(k)(1)(A) and (k)(4)(A) is allowed; <br/>
<a id="pl.32.5"></a><var>32.5</var>    (16) 80 percent of the amount by which the deduction allowed by section 179 of the <br/>
<a id="pl.32.6"></a><var>32.6</var>Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal <br/>
<a id="pl.32.7"></a><var>32.7</var>Revenue Code of 1986, as amended through December 31, 2003; <br/>
<a id="pl.32.8"></a><var>32.8</var>    (17) to the extent deducted in computing federal taxable income, the amount of the <br/>
<a id="pl.32.9"></a><var>32.9</var>deduction allowable under section 199 of the Internal Revenue Code; <br/>
<a id="pl.32.10"></a><var>32.10</var>    (18) the exclusion allowed under section 139A of the Internal Revenue Code for <br/>
<a id="pl.32.11"></a><var>32.11</var>federal subsidies for prescription drug plans; and <br/>
<a id="pl.32.12"></a><var>32.12</var>    (19) the amount of expenses disallowed under section 
         <statute_ref>290.10, subdivision 2</statute_ref>;<br/>
<a id="pl.32.13"></a><var>32.13</var>    (20) an amount equal to the interest and intangible expenses, losses, and costs paid, <br/>
<a id="pl.32.14"></a><var>32.14</var>accrued, or incurred by any member of the taxpayer's unitary group to or for the benefit <br/>
<a id="pl.32.15"></a><var>32.15</var>of a corporation that is a member of the taxpayer's unitary business group that qualifies <br/>
<a id="pl.32.16"></a><var>32.16</var>as a foreign operating corporation. For purposes of this clause, intangible expenses and <br/>
<a id="pl.32.17"></a><var>32.17</var>costs include:<br/>
<a id="pl.32.18"></a><var>32.18</var>    (i) expenses, losses, and costs for, or related to, the direct or indirect acquisition, <br/>
<a id="pl.32.19"></a><var>32.19</var>use, maintenance or management, ownership, sale, exchange, or any other disposition of <br/>
<a id="pl.32.20"></a><var>32.20</var>intangible property;<br/>
<a id="pl.32.21"></a><var>32.21</var>    (ii) losses incurred, directly or indirectly, from factoring transactions or discounting <br/>
<a id="pl.32.22"></a><var>32.22</var>transactions;<br/>
<a id="pl.32.23"></a><var>32.23</var>    (iii) royalty, patent, technical, and copyright fees;<br/>
<a id="pl.32.24"></a><var>32.24</var>    (iv) licensing fees; and<br/>
<a id="pl.32.25"></a><var>32.25</var>    (v) other similar expenses and costs. <br/>
<a id="pl.32.26"></a><var>32.26</var>For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent <br/>
<a id="pl.32.27"></a><var>32.27</var>applications, trade names, trademarks, service marks, copyrights, mask works, trade <br/>
<a id="pl.32.28"></a><var>32.28</var>secrets, and similar types of intangible assets.<br/>
<a id="pl.32.29"></a><var>32.29</var>This clause does not apply to any item of interest or intangible expenses or costs paid, <br/>
<a id="pl.32.30"></a><var>32.30</var>accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect <br/>
<a id="pl.32.31"></a><var>32.31</var>to such item of income to the extent that the income to the foreign operating corporation <br/>
<a id="pl.32.32"></a><var>32.32</var>is income from sources without the United States as defined in subtitle A, chapter 1, <br/>
<a id="pl.32.33"></a><var>32.33</var>subchapter N, part 1, of the Internal Revenue Code;<br/>
<a id="pl.32.34"></a><var>32.34</var>    (21) except as already included in the taxpayer's taxable income pursuant to clause <br/>
<a id="pl.32.35"></a><var>32.35</var>(20), any interest income and income generated from intangible property received or <br/>
<a id="pl.33.1"></a><var>33.1</var>accrued by a foreign operating corporation that is a member of the taxpayer's unitary <br/>
<a id="pl.33.2"></a><var>33.2</var>group. For purposes of this clause, income generated from intangible property includes:<br/>
<a id="pl.33.3"></a><var>33.3</var>    (i) income related to the direct or indirect acquisition, use, maintenance or <br/>
<a id="pl.33.4"></a><var>33.4</var>management, ownership, sale, exchange, or any other disposition of intangible property;<br/>
<a id="pl.33.5"></a><var>33.5</var>    (ii) income from factoring transactions or discounting transactions;<br/>
<a id="pl.33.6"></a><var>33.6</var>    (iii) royalty, patent, technical, and copyright fees;<br/>
<a id="pl.33.7"></a><var>33.7</var>    (iv) licensing fees; and<br/>
<a id="pl.33.8"></a><var>33.8</var>    (v) other similar income.<br/>
<a id="pl.33.9"></a><var>33.9</var>For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent <br/>
<a id="pl.33.10"></a><var>33.10</var>applications, trade names, trademarks, service marks, copyrights, mask works, trade <br/>
<a id="pl.33.11"></a><var>33.11</var>secrets, and similar types of intangible assets. <br/>
<a id="pl.33.12"></a><var>33.12</var>This clause does not apply to any item of interest or intangible income received or accrued <br/>
<a id="pl.33.13"></a><var>33.13</var>by a foreign operating corporation with respect to such item of income to the extent that <br/>
<a id="pl.33.14"></a><var>33.14</var>the income is income from sources without the United States as defined in subtitle A, <br/>
<a id="pl.33.15"></a><var>33.15</var>chapter 1, subchapter N, part 1, of the Internal Revenue Code;<br/>
<a id="pl.33.16"></a><var>33.16</var>    (22) the dividends attributable to the income of a foreign operating corporation that <br/>
<a id="pl.33.17"></a><var>33.17</var>is a member of the taxpayer's unitary group in an amount that is equal to the dividends <br/>
<a id="pl.33.18"></a><var>33.18</var>paid deduction of a real estate investment trust under section 561(a) of the Internal <br/>
<a id="pl.33.19"></a><var>33.19</var>Revenue Code for amounts paid or accrued by the real estate investment trust to the <br/>
<a id="pl.33.20"></a><var>33.20</var>foreign operating corporation; and<br/>
<a id="pl.33.21"></a><var>33.21</var>    (23) the income of a foreign operating corporation that is a member of the taxpayer's <br/>
<a id="pl.33.22"></a><var>33.22</var>unitary group in an amount that is equal to gains derived from the sale of real or personal <br/>
<a id="pl.33.23"></a><var>33.23</var>property located in the United States.<br/>
<a id="pl.33.24"></a><var>33.24</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.33.25"></a><var>33.25</var>December 31, 2007.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.33.26"></a><var>33.26</var>    Sec. 6. Minnesota Statutes 2006, section 290.01, subdivision 19d, as amended by Laws <br/>
<a id="pl.33.27"></a><var>33.27</var>2008, chapter 154, article 11, section 12, is amended to read:<br/>
<a id="pl.33.28"></a><var>33.28</var>    Subd. 19d.  <b>Corporations; modifications decreasing federal taxable income.</b> For <br/>
<a id="pl.33.29"></a><var>33.29</var>corporations, there shall be subtracted from federal taxable income after the increases <br/>
<a id="pl.33.30"></a><var>33.30</var>provided in subdivision 19c: <br/>
<a id="pl.33.31"></a><var>33.31</var>    (1) the amount of foreign dividend gross-up added to gross income for federal <br/>
<a id="pl.33.32"></a><var>33.32</var>income tax purposes under section 78 of the Internal Revenue Code; <br/>
<a id="pl.33.33"></a><var>33.33</var>    (2) the amount of salary expense not allowed for federal income tax purposes due to <br/>
<a id="pl.33.34"></a><var>33.34</var>claiming the work opportunity credit under section 51 of the Internal Revenue Code; <br/>
<a id="pl.34.1"></a><var>34.1</var>    (3) any dividend (not including any distribution in liquidation) paid within the <br/>
<a id="pl.34.2"></a><var>34.2</var>taxable year by a national or state bank to the United States, or to any instrumentality of <br/>
<a id="pl.34.3"></a><var>34.3</var>the United States exempt from federal income taxes, on the preferred stock of the bank <br/>
<a id="pl.34.4"></a><var>34.4</var>owned by the United States or the instrumentality; <br/>
<a id="pl.34.5"></a><var>34.5</var>    (4) amounts disallowed for intangible drilling costs due to differences between <br/>
<a id="pl.34.6"></a><var>34.6</var>this chapter and the Internal Revenue Code in taxable years beginning before January <br/>
<a id="pl.34.7"></a><var>34.7</var>1, 1987, as follows: <br/>
<a id="pl.34.8"></a><var>34.8</var>    (i) to the extent the disallowed costs are represented by physical property, an amount <br/>
<a id="pl.34.9"></a><var>34.9</var>equal to the allowance for depreciation under Minnesota Statutes 1986, section 
         <statute_ref>290.09, <br/>
<a id="pl.34.10"></a><var>34.10</var>subdivision 7
         </statute_ref>, subject to the modifications contained in subdivision 19e; and <br/>
<a id="pl.34.11"></a><var>34.11</var>    (ii) to the extent the disallowed costs are not represented by physical property, an <br/>
<a id="pl.34.12"></a><var>34.12</var>amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section <br/>
<statute_ref><a id="pl.34.13"></a><var>34.13</var>290.09, subdivision 8
         </statute_ref>; <br/>
<a id="pl.34.14"></a><var>34.14</var>    (5) the deduction for capital losses pursuant to sections 1211 and 1212 of the <br/>
<a id="pl.34.15"></a><var>34.15</var>Internal Revenue Code, except that: <br/>
<a id="pl.34.16"></a><var>34.16</var>    (i) for capital losses incurred in taxable years beginning after December 31, 1986, <br/>
<a id="pl.34.17"></a><var>34.17</var>capital loss carrybacks shall not be allowed; <br/>
<a id="pl.34.18"></a><var>34.18</var>    (ii) for capital losses incurred in taxable years beginning after December 31, 1986, <br/>
<a id="pl.34.19"></a><var>34.19</var>a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be <br/>
<a id="pl.34.20"></a><var>34.20</var>allowed; <br/>
<a id="pl.34.21"></a><var>34.21</var>    (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a <br/>
<a id="pl.34.22"></a><var>34.22</var>capital loss carryback to each of the three taxable years preceding the loss year, subject to <br/>
<a id="pl.34.23"></a><var>34.23</var>the provisions of Minnesota Statutes 1986, section 
         <statute_ref>290.16</statute_ref>, shall be allowed; and <br/>
<a id="pl.34.24"></a><var>34.24</var>    (iv) for capital losses incurred in taxable years beginning before January 1, 1987, <br/>
<a id="pl.34.25"></a><var>34.25</var>a capital loss carryover to each of the five taxable years succeeding the loss year to the <br/>
<a id="pl.34.26"></a><var>34.26</var>extent such loss was not used in a prior taxable year and subject to the provisions of <br/>
<a id="pl.34.27"></a><var>34.27</var>Minnesota Statutes 1986, section 
         <statute_ref>290.16</statute_ref>, shall be allowed; <br/>
<a id="pl.34.28"></a><var>34.28</var>    (6) an amount for interest and expenses relating to income not taxable for federal <br/>
<a id="pl.34.29"></a><var>34.29</var>income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and <br/>
<a id="pl.34.30"></a><var>34.30</var>expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or <br/>
<a id="pl.34.31"></a><var>34.31</var>291 of the Internal Revenue Code in computing federal taxable income; <br/>
<a id="pl.34.32"></a><var>34.32</var>    (7) in the case of mines, oil and gas wells, other natural deposits, and timber for <br/>
<a id="pl.34.33"></a><var>34.33</var>which percentage depletion was disallowed pursuant to subdivision 19c, clause (9), a <br/>
<a id="pl.34.34"></a><var>34.34</var>reasonable allowance for depletion based on actual cost. In the case of leases the deduction <br/>
<a id="pl.34.35"></a><var>34.35</var>must be apportioned between the lessor and lessee in accordance with rules prescribed <br/>
<a id="pl.34.36"></a><var>34.36</var>by the commissioner. In the case of property held in trust, the allowable deduction must <br/>
<a id="pl.35.1"></a><var>35.1</var>be apportioned between the income beneficiaries and the trustee in accordance with the <br/>
<a id="pl.35.2"></a><var>35.2</var>pertinent provisions of the trust, or if there is no provision in the instrument, on the basis <br/>
<a id="pl.35.3"></a><var>35.3</var>of the trust's income allocable to each; <br/>
<a id="pl.35.4"></a><var>35.4</var>    (8) for certified pollution control facilities placed in service in a taxable year <br/>
<a id="pl.35.5"></a><var>35.5</var>beginning before December 31, 1986, and for which amortization deductions were elected <br/>
<a id="pl.35.6"></a><var>35.6</var>under section 169 of the Internal Revenue Code of 1954, as amended through December <br/>
<a id="pl.35.7"></a><var>35.7</var>31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes <br/>
<a id="pl.35.8"></a><var>35.8</var>1986, section 
         <statute_ref>290.09, subdivision 7</statute_ref>; <br/>
<a id="pl.35.9"></a><var>35.9</var>    (9) amounts included in federal taxable income that are due to refunds of income, <br/>
<a id="pl.35.10"></a><var>35.10</var>excise, or franchise taxes based on net income or related minimum taxes paid by the <br/>
<a id="pl.35.11"></a><var>35.11</var>corporation to Minnesota, another state, a political subdivision of another state, the <br/>
<a id="pl.35.12"></a><var>35.12</var>District of Columbia, or a foreign country or possession of the United States to the extent <br/>
<a id="pl.35.13"></a><var>35.13</var>that the taxes were added to federal taxable income under section 
         <statute_ref>290.01, subdivision 19c</statute_ref>, <br/>
<a id="pl.35.14"></a><var>35.14</var>clause (1), in a prior taxable year; <br/>
<a id="pl.35.15"></a><var>35.15</var>    (10) 80 percent of royalties, fees, or other like income accrued or received from a <br/>
<a id="pl.35.16"></a><var>35.16</var>foreign operating corporation or a foreign corporation which is part of the same unitary <br/>
<a id="pl.35.17"></a><var>35.17</var>business as the receiving corporation, unless the income resulting from such payments or <br/>
<a id="pl.35.18"></a><var>35.18</var>accruals is income from sources within the United States as defined in subtitle A, chapter <br/>
<a id="pl.35.19"></a><var>35.19</var>1, subchapter N, part 1, of the Internal Revenue Code; <br/>
<a id="pl.35.20"></a><var>35.20</var>    (11) income or gains from the business of mining as defined in section 
         <statute_ref>290.05, <br/>
<a id="pl.35.21"></a><var>35.21</var>subdivision 1
         </statute_ref>, clause (a), that are not subject to Minnesota franchise tax; <br/>
<a id="pl.35.22"></a><var>35.22</var>    (12) the amount of disability access expenditures in the taxable year which are not <br/>
<a id="pl.35.23"></a><var>35.23</var>allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code; <br/>
<a id="pl.35.24"></a><var>35.24</var>    (13) the amount of qualified research expenses not allowed for federal income tax <br/>
<a id="pl.35.25"></a><var>35.25</var>purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that <br/>
<a id="pl.35.26"></a><var>35.26</var>the amount exceeds the amount of the credit allowed under section 
         <statute_ref>290.068</statute_ref>; <br/>
<a id="pl.35.27"></a><var>35.27</var>    (14) the amount of salary expenses not allowed for federal income tax purposes due <br/>
<a id="pl.35.28"></a><var>35.28</var>to claiming the Indian employment credit under section 45A(a) of the Internal Revenue <br/>
<a id="pl.35.29"></a><var>35.29</var>Code; <br/>
<a id="pl.35.30"></a><var>35.30</var>    (15) for taxable years beginning before January 1, 2008, the amount of the federal <br/>
<a id="pl.35.31"></a><var>35.31</var>small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code <br/>
<a id="pl.35.32"></a><var>35.32</var>which is included in gross income under section 87 of the Internal Revenue Code; <br/>
<a id="pl.35.33"></a><var>35.33</var>    (16) for a corporation whose foreign sales corporation, as defined in section 922 <br/>
<a id="pl.35.34"></a><var>35.34</var>of the Internal Revenue Code, constituted a foreign operating corporation during any <br/>
<a id="pl.35.35"></a><var>35.35</var>taxable year ending before January 1, 1995, and a return was filed by August 15, 1996, <br/>
<a id="pl.35.36"></a><var>35.36</var>claiming the deduction under section 
         <statute_ref>290.21, subdivision 4</statute_ref>, for income received from <br/>
<a id="pl.36.1"></a><var>36.1</var>the foreign operating corporation, an amount equal to 
         <statute_ref>1.23</statute_ref> multiplied by the amount of <br/>
<a id="pl.36.2"></a><var>36.2</var>income excluded under section 114 of the Internal Revenue Code, provided the income is <br/>
<a id="pl.36.3"></a><var>36.3</var>not income of a foreign operating company; <br/>
<a id="pl.36.4"></a><var>36.4</var>    (17) any decrease in subpart F income, as defined in section 952(a) of the Internal <br/>
<a id="pl.36.5"></a><var>36.5</var>Revenue Code, for the taxable year when subpart F income is calculated without regard <br/>
<a id="pl.36.6"></a><var>36.6</var>to the provisions of section 103 of Public Law 109-222; <br/>
<a id="pl.36.7"></a><var>36.7</var>    (16) (18) in each of the five tax years immediately following the tax year in which <br/>
<a id="pl.36.8"></a><var>36.8</var>an addition is required under subdivision 19c, clause (15), an amount equal to one-fifth <br/>
<a id="pl.36.9"></a><var>36.9</var>of the delayed depreciation. For purposes of this clause, "delayed depreciation" means <br/>
<a id="pl.36.10"></a><var>36.10</var>the amount of the addition made by the taxpayer under subdivision 19c, clause (15). The <br/>
<a id="pl.36.11"></a><var>36.11</var>resulting delayed depreciation cannot be less than zero; and <br/>
<a id="pl.36.12"></a><var>36.12</var>    (17) (19) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.36.13"></a><var>36.13</var>addition is required under subdivision 19c, clause (16), an amount equal to one-fifth of the <br/>
<a id="pl.36.14"></a><var>36.14</var>amount of the addition. <br/>
<a id="pl.36.15"></a><var>36.15</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.36.16"></a><var>36.16</var>December 31, 2007.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.36.17"></a><var>36.17</var>    Sec. 7. Minnesota Statutes 2006, section 290.06, subdivision 33, as amended by Laws <br/>
<a id="pl.36.18"></a><var>36.18</var>2008, chapter 154, article 11, section 13, is amended to read:<br/>
<a id="pl.36.19"></a><var>36.19</var>    Subd. 33.  <b>Bovine testing credit.</b> (a) An owner of cattle in Minnesota may take a <br/>
<a id="pl.36.20"></a><var>36.20</var>credit against the tax due under this chapter for an amount equal to: (1) for corporate <br/>
<a id="pl.36.21"></a><var>36.21</var>filers, including shareholders of an "S" corporation under section 290.9725, 25 percent <br/>
<a id="pl.36.22"></a><var>36.22</var>of the expenses incurred during the taxable year to conduct tuberculosis testing on those <br/>
<a id="pl.36.23"></a><var>36.23</var>cattle; and (2) for all other filers, one-half the expenses incurred during the taxable year to <br/>
<a id="pl.36.24"></a><var>36.24</var>conduct tuberculosis testing on those cattle. <br/>
<a id="pl.36.25"></a><var>36.25</var>    (b) If the amount of credit which the taxpayer is eligible to receive under this <br/>
<a id="pl.36.26"></a><var>36.26</var>subdivision exceeds the taxpayer's tax liability under this chapter, the commissioner of <br/>
<a id="pl.36.27"></a><var>36.27</var>revenue shall refund the excess to the taxpayer. <br/>
<a id="pl.36.28"></a><var>36.28</var>    (c) The amount necessary to pay claims for the refund provided in this subdivision is <br/>
<a id="pl.36.29"></a><var>36.29</var>appropriated from the general fund to the commissioner of revenue. <br/>
<a id="pl.36.30"></a><var>36.30</var>    (d) Expenses incurred in a calendar year in which tuberculosis testing of cattle in <br/>
<a id="pl.36.31"></a><var>36.31</var>Minnesota is not federally required are not allowed in claiming the credit under paragraph <br/>
<a id="pl.36.32"></a><var>36.32</var>(a). <br/>
<a id="pl.36.33"></a><var>36.33</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.36.34"></a><var>36.34</var>December 31, 2008.<br/>
<br/>
<a id="bill.4.8.0"></a><a id="pl.37.1"></a><var>37.1</var>    Sec. 8. Minnesota Statutes 2006, section 290.0677, subdivision 1, as amended by Laws <br/>
<a id="pl.37.2"></a><var>37.2</var>2008, chapter 154, article 3, section 5, is amended to read:<br/>
<a id="pl.37.3"></a><var>37.3</var>    Subdivision 1.  <b>Credit allowed</b><b>; current military service</b><b>. </b> (a) An individual is <br/>
<a id="pl.37.4"></a><var>37.4</var>allowed a credit against the tax due under this chapter equal to $59 for each month or <br/>
<a id="pl.37.5"></a><var>37.5</var>portion thereof that the individual was in active military service in a designated area after <br/>
<a id="pl.37.6"></a><var>37.6</var>September 11, 2001, and before January 1, 2009, while a Minnesota domiciliary. <br/>
<a id="pl.37.7"></a><var>37.7</var>    (b) An individual is allowed a credit against the tax due under this chapter equal to <br/>
<a id="pl.37.8"></a><var>37.8</var>$120 for each month or portion thereof that the individual was in active military service in <br/>
<a id="pl.37.9"></a><var>37.9</var>a designated area after December 31, 2008, while a Minnesota domiciliary.<br/>
<a id="pl.37.10"></a><var>37.10</var>    (c) For active service performed after September 11, 2001, and before December 31, <br/>
<a id="pl.37.11"></a><var>37.11</var>2006, the individual may claim the credit in the taxable year beginning after December 31, <br/>
<a id="pl.37.12"></a><var>37.12</var>2005, and before January 1, 2007. <br/>
<a id="pl.37.13"></a><var>37.13</var>    (c) (d) For active service performed after December 31, 2006, the individual may <br/>
<a id="pl.37.14"></a><var>37.14</var>claim the credit for the taxable year in which the active service was performed. <br/>
<a id="pl.37.15"></a><var>37.15</var>    (d) (e) If an individual entitled to the credit died prior to January 1, 2006, the <br/>
<a id="pl.37.16"></a><var>37.16</var>individual's estate or heirs at law, if the individual's probate estate has closed or the estate <br/>
<a id="pl.37.17"></a><var>37.17</var>was not probated, may claim the credit. <br/>
<a id="pl.37.18"></a><var>37.18</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.37.19"></a><var>37.19</var>December 31, 2008.<br/>
<br/>
<a id="bill.4.9.0"></a><a id="pl.37.20"></a><var>37.20</var>    Sec. 9. Minnesota Statutes 2006, section 290.0677, is amended by adding a subdivision <br/>
<a id="pl.37.21"></a><var>37.21</var>to read:<br/>
<a id="pl.37.22"></a><var>37.22</var>    Subd. 1a. <b>Credit allowed; past military service.</b> (a) A qualified individual is <br/>
<a id="pl.37.23"></a><var>37.23</var>allowed a credit against the tax imposed under this chapter for past military service. The <br/>
<a id="pl.37.24"></a><var>37.24</var>credit equals $750. The credit allowed under this subdivision is reduced by 10 percent of <br/>
<a id="pl.37.25"></a><var>37.25</var>adjusted gross income in excess of $30,000, but in no case is the credit less than zero.<br/>
<a id="pl.37.26"></a><var>37.26</var>    (b) For a nonresident or a part-year resident, the credit under this subdivision <br/>
<a id="pl.37.27"></a><var>37.27</var>must be allocated based on the percentage calculated under section 290.06, subdivision <br/>
<a id="pl.37.28"></a><var>37.28</var>2c, paragraph (e).<br/>
<a id="pl.37.29"></a><var>37.29</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.37.30"></a><var>37.30</var>December 31, 2008.<br/>
<br/>
<a id="bill.4.10.0"></a><a id="pl.37.31"></a><var>37.31</var>    Sec. 10. Minnesota Statutes 2006, section 290.0677, subdivision 2, is amended to read:<br/>
<a id="pl.37.32"></a><var>37.32</var>    Subd. 2. <b>Definitions.</b> (a) For purposes of this section the following terms have <br/>
<a id="pl.37.33"></a><var>37.33</var>the meanings given. <br/>
<a id="pl.38.1"></a><var>38.1</var>    (b) "Designated area" means a: <br/>
<a id="pl.38.2"></a><var>38.2</var>    (1) combat zone designated by Executive Order from the President of the United <br/>
<a id="pl.38.3"></a><var>38.3</var>States; <br/>
<a id="pl.38.4"></a><var>38.4</var>    (2) qualified hazardous duty area, designated in Public Law; or <br/>
<a id="pl.38.5"></a><var>38.5</var>    (3) location certified by the U. S. Department of Defense as eligible for combat zone <br/>
<a id="pl.38.6"></a><var>38.6</var>tax benefits due to the location's direct support of military operations. <br/>
<a id="pl.38.7"></a><var>38.7</var>    (c) "Active military service" means active duty service in any of the United States <br/>
<a id="pl.38.8"></a><var>38.8</var>Armed Forces, the National Guard, or reserves.<br/>
<a id="pl.38.9"></a><var>38.9</var>    (d) "Qualified individual" means an individual who has<br/>
<a id="pl.38.10"></a><var>38.10</var>    (1) either (i) served at least 20 years in the military or (ii) has a service-connected <br/>
<a id="pl.38.11"></a><var>38.11</var>disability rating of 100 percent for a total and permanent disability; and<br/>
<a id="pl.38.12"></a><var>38.12</var>    (2) separated from military service before the end of the taxable year.<br/>
<a id="pl.38.13"></a><var>38.13</var>    (e) "Adjusted gross income" has the meaning given in section 61 of the Internal <br/>
<a id="pl.38.14"></a><var>38.14</var>Revenue Code.<br/>
<a id="pl.38.15"></a><var>38.15</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.38.16"></a><var>38.16</var>December 31, 2008.<br/>
<br/>
<a id="bill.4.11.0"></a><a id="pl.38.17"></a><var>38.17</var>    Sec. 11. Minnesota Statutes 2006, section 290.0677, subdivision 3, is amended to read:<br/>
<a id="pl.38.18"></a><var>38.18</var>    Subd. 3. <b>Credit refundable.</b> If the amount of credit which the individual is eligible <br/>
<a id="pl.38.19"></a><var>38.19</var>to receive under this section subdivision 1 exceeds the individual's tax liability under this <br/>
<a id="pl.38.20"></a><var>38.20</var>chapter, the commissioner shall refund the excess to the individual.<br/>
<a id="pl.38.21"></a><var>38.21</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.38.22"></a><var>38.22</var>December 31, 2008.<br/>
<br/>
<a id="bill.4.12.0"></a><a id="pl.38.23"></a><var>38.23</var>    Sec. 12. Minnesota Statutes 2006, section 290.091, subdivision 2, as amended by Laws <br/>
<a id="pl.38.24"></a><var>38.24</var>2008, chapter 154, article 4, section 7, is amended to read:<br/>
<a id="pl.38.25"></a><var>38.25</var>    Subd. 2.  <b>Definitions.</b> For purposes of the tax imposed by this section, the following <br/>
<a id="pl.38.26"></a><var>38.26</var>terms have the meanings given: <br/>
<a id="pl.38.27"></a><var>38.27</var>    (a) "Alternative minimum taxable income" means the sum of the following for <br/>
<a id="pl.38.28"></a><var>38.28</var>the taxable year: <br/>
<a id="pl.38.29"></a><var>38.29</var>    (1) the taxpayer's federal alternative minimum taxable income as defined in section <br/>
<a id="pl.38.30"></a><var>38.30</var>55(b)(2) of the Internal Revenue Code; <br/>
<a id="pl.38.31"></a><var>38.31</var>    (2) the taxpayer's itemized deductions allowed in computing federal alternative <br/>
<a id="pl.38.32"></a><var>38.32</var>minimum taxable income, but excluding: <br/>
<a id="pl.38.33"></a><var>38.33</var>    (i) the charitable contribution deduction under section 170 of the Internal Revenue <br/>
<a id="pl.38.34"></a><var>38.34</var>Code:; <br/>
<a id="pl.39.1"></a><var>39.1</var>    (A) for taxable years beginning before January 1, 2006, to the extent that the <br/>
<a id="pl.39.2"></a><var>39.2</var>deduction exceeds 1.0 percent of adjusted gross income; <br/>
<a id="pl.39.3"></a><var>39.3</var>    (B) for taxable years beginning after December 31, 2005, to the full extent of the <br/>
<a id="pl.39.4"></a><var>39.4</var>deduction.<br/>
<a id="pl.39.5"></a><var>39.5</var>    For purposes of this clause, "adjusted gross income" has the meaning given in <br/>
<a id="pl.39.6"></a><var>39.6</var>section 62 of the Internal Revenue Code;<br/>
<a id="pl.39.7"></a><var>39.7</var>    (ii) the medical expense deduction; <br/>
<a id="pl.39.8"></a><var>39.8</var>    (iii) the casualty, theft, and disaster loss deduction; and <br/>
<a id="pl.39.9"></a><var>39.9</var>    (iv) the impairment-related work expenses of a disabled person; <br/>
<a id="pl.39.10"></a><var>39.10</var>    (3) for depletion allowances computed under section 613A(c) of the Internal <br/>
<a id="pl.39.11"></a><var>39.11</var>Revenue Code, with respect to each property (as defined in section 614 of the Internal <br/>
<a id="pl.39.12"></a><var>39.12</var>Revenue Code), to the extent not included in federal alternative minimum taxable income, <br/>
<a id="pl.39.13"></a><var>39.13</var>the excess of the deduction for depletion allowable under section 611 of the Internal <br/>
<a id="pl.39.14"></a><var>39.14</var>Revenue Code for the taxable year over the adjusted basis of the property at the end of the <br/>
<a id="pl.39.15"></a><var>39.15</var>taxable year (determined without regard to the depletion deduction for the taxable year); <br/>
<a id="pl.39.16"></a><var>39.16</var>    (4) to the extent not included in federal alternative minimum taxable income, the <br/>
<a id="pl.39.17"></a><var>39.17</var>amount of the tax preference for intangible drilling cost under section 57(a)(2) of the <br/>
<a id="pl.39.18"></a><var>39.18</var>Internal Revenue Code determined without regard to subparagraph (E); <br/>
<a id="pl.39.19"></a><var>39.19</var>    (5) to the extent not included in federal alternative minimum taxable income, the <br/>
<a id="pl.39.20"></a><var>39.20</var>amount of interest income as provided by section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (1); and <br/>
<a id="pl.39.21"></a><var>39.21</var>    (6) the amount of addition required by section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clauses <br/>
<a id="pl.39.22"></a><var>39.22</var>(7) to (9), (11), and (12); <br/>
<a id="pl.39.23"></a><var>39.23</var>    less the sum of the amounts determined under the following: <br/>
<a id="pl.39.24"></a><var>39.24</var>    (1) interest income as defined in section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clause (1); <br/>
<a id="pl.39.25"></a><var>39.25</var>    (2) an overpayment of state income tax as provided by section 
         <statute_ref>290.01, subdivision <br/>
<a id="pl.39.26"></a><var>39.26</var>19b
         </statute_ref>, clause (2), to the extent included in federal alternative minimum taxable income; <br/>
<a id="pl.39.27"></a><var>39.27</var>    (3) the amount of investment interest paid or accrued within the taxable year on <br/>
<a id="pl.39.28"></a><var>39.28</var>indebtedness to the extent that the amount does not exceed net investment income, as <br/>
<a id="pl.39.29"></a><var>39.29</var>defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include <br/>
<a id="pl.39.30"></a><var>39.30</var>amounts deducted in computing federal adjusted gross income; and <br/>
<a id="pl.39.31"></a><var>39.31</var>    (4) amounts subtracted from federal taxable income as provided by section 
         <statute_ref>290.01, <br/>
<a id="pl.39.32"></a><var>39.32</var>subdivision 19b
         </statute_ref>, clauses (6) and (9) to (16). <br/>
<a id="pl.39.33"></a><var>39.33</var>    In the case of an estate or trust, alternative minimum taxable income must be <br/>
<a id="pl.39.34"></a><var>39.34</var>computed as provided in section 59(c) of the Internal Revenue Code. <br/>
<a id="pl.39.35"></a><var>39.35</var>    (b) "Investment interest" means investment interest as defined in section 163(d)(3) <br/>
<a id="pl.39.36"></a><var>39.36</var>of the Internal Revenue Code. <br/>
<a id="pl.40.1"></a><var>40.1</var>    (c) "Tentative minimum tax" equals 6.4 percent of alternative minimum taxable <br/>
<a id="pl.40.2"></a><var>40.2</var>income after subtracting the exemption amount determined under subdivision 3. <br/>
<a id="pl.40.3"></a><var>40.3</var>    (d) "Regular tax" means the tax that would be imposed under this chapter (without <br/>
<a id="pl.40.4"></a><var>40.4</var>regard to this section and section 290.032), reduced by the sum of the nonrefundable <br/>
<a id="pl.40.5"></a><var>40.5</var>credits allowed under this chapter. <br/>
<a id="pl.40.6"></a><var>40.6</var>    (e) "Net minimum tax" means the minimum tax imposed by this section. <br/>
<a id="pl.40.7"></a><var>40.7</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.40.8"></a><var>40.8</var>December 31, 2007.<br/>
<br/>
<a id="bill.4.13.0"></a><a id="pl.40.9"></a><var>40.9</var>    Sec. 13. Minnesota Statutes 2006, section 290.191, subdivision 5, is amended to read:<br/>
<a id="pl.40.10"></a><var>40.10</var>    Subd. 5. <b>Determination of sales factor.</b> For purposes of this section, the following <br/>
<a id="pl.40.11"></a><var>40.11</var>rules apply in determining the sales factor.<br/>
<a id="pl.40.12"></a><var>40.12</var>    (a) The sales factor includes all sales, gross earnings, or receipts received in the <br/>
<a id="pl.40.13"></a><var>40.13</var>ordinary course of the business, except that the following types of income are not included <br/>
<a id="pl.40.14"></a><var>40.14</var>in the sales factor:<br/>
<a id="pl.40.15"></a><var>40.15</var>    (1) interest;<br/>
<a id="pl.40.16"></a><var>40.16</var>    (2) dividends;<br/>
<a id="pl.40.17"></a><var>40.17</var>    (3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;<br/>
<a id="pl.40.18"></a><var>40.18</var>    (4) sales of property used in the trade or business, except sales of leased property of <br/>
<a id="pl.40.19"></a><var>40.19</var>a type which is regularly sold as well as leased;<br/>
<a id="pl.40.20"></a><var>40.20</var>    (5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue <br/>
<a id="pl.40.21"></a><var>40.21</var>Code or sales of stock; and<br/>
<a id="pl.40.22"></a><var>40.22</var>    (6) royalties, fees, or other like income of a type which qualify for a subtraction from <br/>
<a id="pl.40.23"></a><var>40.23</var>federal taxable income under section 
         <statute_ref>290.01, subdivision 19d(10)</statute_ref>. <br/>
<a id="pl.40.24"></a><var>40.24</var>    (b) Sales of tangible personal property are made within this state if the property is <br/>
<a id="pl.40.25"></a><var>40.25</var>received by a purchaser at a point within this state, and the taxpayer is taxable in this state, <br/>
<a id="pl.40.26"></a><var>40.26</var>regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination <br/>
<a id="pl.40.27"></a><var>40.27</var>of the property.<br/>
<a id="pl.40.28"></a><var>40.28</var>    (c) Tangible personal property delivered to a common or contract carrier or foreign <br/>
<a id="pl.40.29"></a><var>40.29</var>vessel for delivery to a purchaser in another state or nation is a sale in that state or nation, <br/>
<a id="pl.40.30"></a><var>40.30</var>regardless of f.o.b. point or other conditions of the sale.<br/>
<a id="pl.40.31"></a><var>40.31</var>    (d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine, <br/>
<a id="pl.40.32"></a><var>40.32</var>fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is <br/>
<a id="pl.40.33"></a><var>40.33</var>licensed by a state or political subdivision to resell this property only within the state of <br/>
<a id="pl.40.34"></a><var>40.34</var>ultimate destination, the sale is made in that state.<br/>
<a id="pl.41.1"></a><var>41.1</var>    (e) Sales made by or through a corporation that is qualified as a domestic <br/>
<a id="pl.41.2"></a><var>41.2</var>international sales corporation under section 992 of the Internal Revenue Code are not <br/>
<a id="pl.41.3"></a><var>41.3</var>considered to have been made within this state.<br/>
<a id="pl.41.4"></a><var>41.4</var>    (f) Sales, rents, royalties, and other income in connection with real property is <br/>
<a id="pl.41.5"></a><var>41.5</var>attributed to the state in which the property is located.<br/>
<a id="pl.41.6"></a><var>41.6</var>    (g) Receipts from the lease or rental of tangible personal property, including finance <br/>
<a id="pl.41.7"></a><var>41.7</var>leases and true leases, must be attributed to this state if the property is located in this <br/>
<a id="pl.41.8"></a><var>41.8</var>state and to other states if the property is not located in this state. Receipts from the <br/>
<a id="pl.41.9"></a><var>41.9</var>lease or rental of moving property including, but not limited to, motor vehicles, rolling <br/>
<a id="pl.41.10"></a><var>41.10</var>stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts <br/>
<a id="pl.41.11"></a><var>41.11</var>factor to the extent that the property is used in this state. The extent of the use of moving <br/>
<a id="pl.41.12"></a><var>41.12</var>property is determined as follows:<br/>
<a id="pl.41.13"></a><var>41.13</var>    (1) A motor vehicle is used wholly in the state in which it is registered.<br/>
<a id="pl.41.14"></a><var>41.14</var>    (2) The extent that rolling stock is used in this state is determined by multiplying <br/>
<a id="pl.41.15"></a><var>41.15</var>the receipts from the lease or rental of the rolling stock by a fraction, the numerator of <br/>
<a id="pl.41.16"></a><var>41.16</var>which is the miles traveled within this state by the leased or rented rolling stock and the <br/>
<a id="pl.41.17"></a><var>41.17</var>denominator of which is the total miles traveled by the leased or rented rolling stock.<br/>
<a id="pl.41.18"></a><var>41.18</var>    (3) The extent that an aircraft is used in this state is determined by multiplying the <br/>
<a id="pl.41.19"></a><var>41.19</var>receipts from the lease or rental of the aircraft by a fraction, the numerator of which is <br/>
<a id="pl.41.20"></a><var>41.20</var>the number of landings of the aircraft in this state and the denominator of which is the <br/>
<a id="pl.41.21"></a><var>41.21</var>total number of landings of the aircraft.<br/>
<a id="pl.41.22"></a><var>41.22</var>    (4) The extent that a vessel, mobile equipment, or other mobile property is used in <br/>
<a id="pl.41.23"></a><var>41.23</var>the state is determined by multiplying the receipts from the lease or rental of the property <br/>
<a id="pl.41.24"></a><var>41.24</var>by a fraction, the numerator of which is the number of days during the taxable year the <br/>
<a id="pl.41.25"></a><var>41.25</var>property was in this state and the denominator of which is the total days in the taxable year.<br/>
<a id="pl.41.26"></a><var>41.26</var>    (h) Royalties and other income not described in paragraph (a), clause (6), received <br/>
<a id="pl.41.27"></a><var>41.27</var>for the use of or for the privilege of using intangible property, including patents, <br/>
<a id="pl.41.28"></a><var>41.28</var>know-how, formulas, designs, processes, patterns, copyrights, trade names, service names, <br/>
<a id="pl.41.29"></a><var>41.29</var>franchises, licenses, contracts, customer lists, or similar items, must be attributed to the <br/>
<a id="pl.41.30"></a><var>41.30</var>state in which the property is used by the purchaser. If the property is used in more <br/>
<a id="pl.41.31"></a><var>41.31</var>than one state, the royalties or other income must be apportioned to this state pro rata <br/>
<a id="pl.41.32"></a><var>41.32</var>according to the portion of use in this state. If the portion of use in this state cannot be <br/>
<a id="pl.41.33"></a><var>41.33</var>determined, the royalties or other income must be excluded from both the numerator <br/>
<a id="pl.41.34"></a><var>41.34</var>and the denominator. Intangible property is used in this state if the purchaser uses the <br/>
<a id="pl.41.35"></a><var>41.35</var>intangible property or the rights therein in the regular course of its business operations in <br/>
<a id="pl.41.36"></a><var>41.36</var>this state, regardless of the location of the purchaser's customers.<br/>
<a id="pl.42.1"></a><var>42.1</var>    (i) Sales of intangible property are made within the state in which the property is <br/>
<a id="pl.42.2"></a><var>42.2</var>used by the purchaser. If the property is used in more than one state, the sales must be <br/>
<a id="pl.42.3"></a><var>42.3</var>apportioned to this state pro rata according to the portion of use in this state. If the <br/>
<a id="pl.42.4"></a><var>42.4</var>portion of use in this state cannot be determined, the sale must be excluded from both the <br/>
<a id="pl.42.5"></a><var>42.5</var>numerator and the denominator of the sales factor. Intangible property is used in this <br/>
<a id="pl.42.6"></a><var>42.6</var>state if the purchaser used the intangible property in the regular course of its business <br/>
<a id="pl.42.7"></a><var>42.7</var>operations in this state.<br/>
<a id="pl.42.8"></a><var>42.8</var>    (j) Receipts from the performance of services must be attributed to the state where <br/>
<a id="pl.42.9"></a><var>42.9</var>the services are received. For the purposes of this section, receipts from the performance <br/>
<a id="pl.42.10"></a><var>42.10</var>of services provided to a corporation, partnership, or trust may only be attributed to a state <br/>
<a id="pl.42.11"></a><var>42.11</var>where it has a fixed place of doing business. If the state where the services are received is <br/>
<a id="pl.42.12"></a><var>42.12</var>not readily determinable or is a state where the corporation, partnership, or trust receiving <br/>
<a id="pl.42.13"></a><var>42.13</var>the service does not have a fixed place of doing business, the services shall be deemed <br/>
<a id="pl.42.14"></a><var>42.14</var>to be received at the location of the office of the customer from which the services were <br/>
<a id="pl.42.15"></a><var>42.15</var>ordered in the regular course of the customer's trade or business. If the ordering office <br/>
<a id="pl.42.16"></a><var>42.16</var>cannot be determined, the services shall be deemed to be received at the office of the <br/>
<a id="pl.42.17"></a><var>42.17</var>customer to which the services are billed.<br/>
<a id="pl.42.18"></a><var>42.18</var>    (k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts <br/>
<a id="pl.42.19"></a><var>42.19</var>from management, distribution, or administrative services performed by a corporation <br/>
<a id="pl.42.20"></a><var>42.20</var>or trust for a fund of a corporation or trust regulated under United States Code, title 15, <br/>
<a id="pl.42.21"></a><var>42.21</var>sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of <br/>
<a id="pl.42.22"></a><var>42.22</var>the fund resides. Under this paragraph, receipts for services attributed to shareholders are <br/>
<a id="pl.42.23"></a><var>42.23</var>determined on the basis of the ratio of: (1) the average of the outstanding shares in the <br/>
<a id="pl.42.24"></a><var>42.24</var>fund owned by shareholders residing within Minnesota at the beginning and end of each <br/>
<a id="pl.42.25"></a><var>42.25</var>year; and (2) the average of the total number of outstanding shares in the fund at the <br/>
<a id="pl.42.26"></a><var>42.26</var>beginning and end of each year. Residence of the shareholder, in the case of an individual, <br/>
<a id="pl.42.27"></a><var>42.27</var>is determined by the mailing address furnished by the shareholder to the fund. Residence <br/>
<a id="pl.42.28"></a><var>42.28</var>of the shareholder, when the shares are held by an insurance company as a depositor for <br/>
<a id="pl.42.29"></a><var>42.29</var>the insurance company policyholders, is the mailing address of the policyholders. In <br/>
<a id="pl.42.30"></a><var>42.30</var>the case of an insurance company holding the shares as a depositor for the insurance <br/>
<a id="pl.42.31"></a><var>42.31</var>company policyholders, if the mailing address of the policyholders cannot be determined <br/>
<a id="pl.42.32"></a><var>42.32</var>by the taxpayer, the receipts must be excluded from both the numerator and denominator. <br/>
<a id="pl.42.33"></a><var>42.33</var>Residence of other shareholders is the mailing address of the shareholder.<br/>
<a id="pl.42.34"></a><var>42.34</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.42.35"></a><var>42.35</var>December 31, 2009.<br/>
<br/>
<a id="bill.4.14.0"></a><a id="pl.43.1"></a><var>43.1</var>    Sec. 14. Minnesota Statutes 2006, section 290.191, subdivision 6, is amended to read:<br/>
<a id="pl.43.2"></a><var>43.2</var>    Subd. 6. <b>Determination of receipts factor for financial institutions.</b> (a) For <br/>
<a id="pl.43.3"></a><var>43.3</var>purposes of this section, the rules in this subdivision and subdivision subdivisions 5, <br/>
<a id="pl.43.4"></a><var>43.4</var>paragraph (k), and 8 apply in determining the receipts factor for financial institutions.<br/>
<a id="pl.43.5"></a><var>43.5</var>    (b) "Receipts" for this purpose means gross income, including net taxable gain on <br/>
<a id="pl.43.6"></a><var>43.6</var>disposition of assets, including securities and money market instruments, when derived <br/>
<a id="pl.43.7"></a><var>43.7</var>from transactions and activities in the regular course of the taxpayer's trade or business.<br/>
<a id="pl.43.8"></a><var>43.8</var>    (c) "Money market instruments" means federal funds sold and securities purchased <br/>
<a id="pl.43.9"></a><var>43.9</var>under agreements to resell, commercial paper, banker's acceptances, and purchased <br/>
<a id="pl.43.10"></a><var>43.10</var>certificates of deposit and similar instruments to the extent that the instruments are <br/>
<a id="pl.43.11"></a><var>43.11</var>reflected as assets under generally accepted accounting principles.<br/>
<a id="pl.43.12"></a><var>43.12</var>    (d) "Securities" means United States Treasury securities, obligations of United States <br/>
<a id="pl.43.13"></a><var>43.13</var>government agencies and corporations, obligations of state and political subdivisions, <br/>
<a id="pl.43.14"></a><var>43.14</var>corporate stock, bonds, and other securities, participations in securities backed by <br/>
<a id="pl.43.15"></a><var>43.15</var>mortgages held by United States or state government agencies, loan-backed securities and <br/>
<a id="pl.43.16"></a><var>43.16</var>similar investments to the extent the investments are reflected as assets under generally <br/>
<a id="pl.43.17"></a><var>43.17</var>accepted accounting principles.<br/>
<a id="pl.43.18"></a><var>43.18</var>    (e) Receipts from the lease or rental of real or tangible personal property, including <br/>
<a id="pl.43.19"></a><var>43.19</var>both finance leases and true leases, must be attributed to this state if the property is <br/>
<a id="pl.43.20"></a><var>43.20</var>located in this state. Receipts from the lease or rental of tangible personal property that is <br/>
<a id="pl.43.21"></a><var>43.21</var>characteristically moving property, including, but not limited to, motor vehicles, rolling <br/>
<a id="pl.43.22"></a><var>43.22</var>stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts <br/>
<a id="pl.43.23"></a><var>43.23</var>factor to the extent that the property is used in this state. The extent of the use of moving <br/>
<a id="pl.43.24"></a><var>43.24</var>property is determined as follows:<br/>
<a id="pl.43.25"></a><var>43.25</var>    (1) A motor vehicle is used wholly in the state in which it is registered.<br/>
<a id="pl.43.26"></a><var>43.26</var>    (2) The extent that rolling stock is used in this state is determined by multiplying <br/>
<a id="pl.43.27"></a><var>43.27</var>the receipts from the lease or rental of the rolling stock by a fraction, the numerator of <br/>
<a id="pl.43.28"></a><var>43.28</var>which is the miles traveled within this state by the leased or rented rolling stock and the <br/>
<a id="pl.43.29"></a><var>43.29</var>denominator of which is the total miles traveled by the leased or rented rolling stock.<br/>
<a id="pl.43.30"></a><var>43.30</var>    (3) The extent that an aircraft is used in this state is determined by multiplying the <br/>
<a id="pl.43.31"></a><var>43.31</var>receipts from the lease or rental of the aircraft by a fraction, the numerator of which is <br/>
<a id="pl.43.32"></a><var>43.32</var>the number of landings of the aircraft in this state and the denominator of which is the <br/>
<a id="pl.43.33"></a><var>43.33</var>total number of landings of the aircraft.<br/>
<a id="pl.43.34"></a><var>43.34</var>    (4) The extent that a vessel, mobile equipment, or other mobile property is used in <br/>
<a id="pl.43.35"></a><var>43.35</var>the state is determined by multiplying the receipts from the lease or rental of property by a <br/>
<a id="pl.44.1"></a><var>44.1</var>fraction, the numerator of which is the number of days during the taxable year the property <br/>
<a id="pl.44.2"></a><var>44.2</var>was in this state and the denominator of which is the total days in the taxable year.<br/>
<a id="pl.44.3"></a><var>44.3</var>    (f) Interest income and other receipts from assets in the nature of loans that are <br/>
<a id="pl.44.4"></a><var>44.4</var>secured primarily by real estate or tangible personal property must be attributed to this state <br/>
<a id="pl.44.5"></a><var>44.5</var>if the security property is located in this state under the principles stated in paragraph (e).<br/>
<a id="pl.44.6"></a><var>44.6</var>    (g) Interest income and other receipts from consumer loans not secured by real or <br/>
<a id="pl.44.7"></a><var>44.7</var>tangible personal property that are made to residents of this state, whether at a place <br/>
<a id="pl.44.8"></a><var>44.8</var>of business, by traveling loan officer, by mail, by telephone or other electronic means, <br/>
<a id="pl.44.9"></a><var>44.9</var>must be attributed to this state.<br/>
<a id="pl.44.10"></a><var>44.10</var>    (h) Interest income and other receipts from commercial loans and installment <br/>
<a id="pl.44.11"></a><var>44.11</var>obligations that are unsecured by real or tangible personal property or secured by <br/>
<a id="pl.44.12"></a><var>44.12</var>intangible property must be attributed to this state if the proceeds of the loan are to be <br/>
<a id="pl.44.13"></a><var>44.13</var>applied in this state. If it cannot be determined where the funds are to be applied, the <br/>
<a id="pl.44.14"></a><var>44.14</var>income and receipts are attributed to the state in which the office of the borrower from <br/>
<a id="pl.44.15"></a><var>44.15</var>which the application would be made in the regular course of business is located. If this <br/>
<a id="pl.44.16"></a><var>44.16</var>cannot be determined, the transaction is disregarded in the apportionment formula.<br/>
<a id="pl.44.17"></a><var>44.17</var>    (i) Interest income and other receipts from a participating financial institution's <br/>
<a id="pl.44.18"></a><var>44.18</var>portion of participation and syndication loans must be attributed under paragraphs (e) to <br/>
<a id="pl.44.19"></a><var>44.19</var>(h). A participation loan is an arrangement in which a lender makes a loan to a borrower <br/>
<a id="pl.44.20"></a><var>44.20</var>and then sells, assigns, or otherwise transfers all or a part of the loan to a purchasing <br/>
<a id="pl.44.21"></a><var>44.21</var>financial institution. A syndication loan is a loan transaction involving multiple financial <br/>
<a id="pl.44.22"></a><var>44.22</var>institutions in which all the lenders are named as parties to the loan documentation, are <br/>
<a id="pl.44.23"></a><var>44.23</var>known to the borrower, and have privity of contract with the borrower.<br/>
<a id="pl.44.24"></a><var>44.24</var>    (j) Interest income and other receipts including service charges from financial <br/>
<a id="pl.44.25"></a><var>44.25</var>institution credit card and travel and entertainment credit card receivables and credit <br/>
<a id="pl.44.26"></a><var>44.26</var>card holders' fees must be attributed to the state to which the card charges and fees are <br/>
<a id="pl.44.27"></a><var>44.27</var>regularly billed.<br/>
<a id="pl.44.28"></a><var>44.28</var>    (k) Merchant discount income derived from financial institution credit card holder <br/>
<a id="pl.44.29"></a><var>44.29</var>transactions with a merchant must be attributed to the state in which the merchant is <br/>
<a id="pl.44.30"></a><var>44.30</var>located. In the case of merchants located within and outside the state, only receipts from <br/>
<a id="pl.44.31"></a><var>44.31</var>merchant discounts attributable to sales made from locations within the state are attributed <br/>
<a id="pl.44.32"></a><var>44.32</var>to this state. It is presumed, subject to rebuttal, that the location of a merchant is the <br/>
<a id="pl.44.33"></a><var>44.33</var>address shown on the invoice submitted by the merchant to the taxpayer.<br/>
<a id="pl.44.34"></a><var>44.34</var>    (l) Receipts from the performance of fiduciary and other services must be attributed <br/>
<a id="pl.44.35"></a><var>44.35</var>to the state in which the services are received. For the purposes of this section, services <br/>
<a id="pl.44.36"></a><var>44.36</var>provided to a corporation, partnership, or trust must be attributed to a state where it has a <br/>
<a id="pl.45.1"></a><var>45.1</var>fixed place of doing business. If the state where the services are received is not readily <br/>
<a id="pl.45.2"></a><var>45.2</var>determinable or is a state where the corporation, partnership, or trust does not have a fixed <br/>
<a id="pl.45.3"></a><var>45.3</var>place of doing business, the services shall be deemed to be received at the location of the <br/>
<a id="pl.45.4"></a><var>45.4</var>office of the customer from which the services were ordered in the regular course of the <br/>
<a id="pl.45.5"></a><var>45.5</var>customer's trade or business. If the ordering office cannot be determined, the services shall <br/>
<a id="pl.45.6"></a><var>45.6</var>be deemed to be received at the office of the customer to which the services are billed.<br/>
<a id="pl.45.7"></a><var>45.7</var>    (m) Receipts from the issuance of travelers checks and money orders must be <br/>
<a id="pl.45.8"></a><var>45.8</var>attributed to the state in which the checks and money orders are purchased.<br/>
<a id="pl.45.9"></a><var>45.9</var>    (n) Receipts from investments of a financial institution in securities and from money <br/>
<a id="pl.45.10"></a><var>45.10</var>market instruments must be apportioned to this state based on the ratio that total deposits <br/>
<a id="pl.45.11"></a><var>45.11</var>from this state, its residents, including any business with an office or other place of <br/>
<a id="pl.45.12"></a><var>45.12</var>business in this state, its political subdivisions, agencies, and instrumentalities bear to the <br/>
<a id="pl.45.13"></a><var>45.13</var>total deposits from all states, their residents, their political subdivisions, agencies, and <br/>
<a id="pl.45.14"></a><var>45.14</var>instrumentalities. In the case of an unregulated financial institution subject to this section, <br/>
<a id="pl.45.15"></a><var>45.15</var>these receipts are apportioned to this state based on the ratio that its gross business income, <br/>
<a id="pl.45.16"></a><var>45.16</var>excluding such receipts, earned from sources within this state bears to gross business <br/>
<a id="pl.45.17"></a><var>45.17</var>income, excluding such receipts, earned from sources within all states. For purposes <br/>
<a id="pl.45.18"></a><var>45.18</var>of this subdivision, deposits made by this state, its residents, its political subdivisions, <br/>
<a id="pl.45.19"></a><var>45.19</var>agencies, and instrumentalities must be attributed to this state, whether or not the deposits <br/>
<a id="pl.45.20"></a><var>45.20</var>are accepted or maintained by the taxpayer at locations within this state.<br/>
<a id="pl.45.21"></a><var>45.21</var>    (o) A financial institution's interest in property described in section 
         <statute_ref>290.015, <br/>
<a id="pl.45.22"></a><var>45.22</var>subdivision 3
         </statute_ref>, paragraph (b), is included in the receipts factor in the same manner as assets <br/>
<a id="pl.45.23"></a><var>45.23</var>in the nature of securities or money market instruments are included in paragraph (n). <br/>
<a id="pl.45.24"></a><var>45.24</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.45.25"></a><var>45.25</var>December 31, 2009.<br/>
<br/>
<a id="bill.4.15.0"></a><a id="pl.45.26"></a><var>45.26</var>    Sec. 15. Minnesota Statutes 2006, section 291.03, subdivision 1, is amended to read:<br/>
<a id="pl.45.27"></a><var>45.27</var>    Subdivision 1. <b>Tax amount.</b> (a) The tax imposed shall be an amount equal to the <br/>
<a id="pl.45.28"></a><var>45.28</var>proportion of the maximum credit for state death taxes computed under section 2011 of <br/>
<a id="pl.45.29"></a><var>45.29</var>the Internal Revenue Code, as amended through December 31, 2000, but using Minnesota <br/>
<a id="pl.45.30"></a><var>45.30</var>adjusted taxable estate instead of federal adjusted taxable estate, as the Minnesota gross <br/>
<a id="pl.45.31"></a><var>45.31</var>estate bears to the value of the federal gross estate. The tax determined under this <br/>
<a id="pl.45.32"></a><var>45.32</var>paragraph shall not be greater than the amount computed by applying the rates and <br/>
<a id="pl.45.33"></a><var>45.33</var>brackets under section 2001(c) of the Internal Revenue Code to the Minnesota adjusted <br/>
<a id="pl.45.34"></a><var>45.34</var>gross estate and subtracting the federal credit allowed under section 2010 of the Internal <br/>
<a id="pl.45.35"></a><var>45.35</var>Revenue Code of 1986, as amended through December 31, 2000. For the purposes of <br/>
<a id="pl.46.1"></a><var>46.1</var>this section, expenses which are deducted for federal income tax purposes under section <br/>
<a id="pl.46.2"></a><var>46.2</var>642(g) of the Internal Revenue Code as amended through December 31, 2002, are not <br/>
<a id="pl.46.3"></a><var>46.3</var>allowable in computing the tax under this chapter.<br/>
<a id="pl.46.4"></a><var>46.4</var>    (b) The tax determined under this subdivision must not be greater than the sum of <br/>
<a id="pl.46.5"></a><var>46.5</var>the following amounts multiplied by a fraction, the numerator of which is the Minnesota <br/>
<a id="pl.46.6"></a><var>46.6</var>gross estate and the denominator of which is the federal gross estate:<br/>
<a id="pl.46.7"></a><var>46.7</var>    (1) the rates and brackets under section 2001(c) of the Internal Revenue Code <br/>
<a id="pl.46.8"></a><var>46.8</var>multiplied by the sum of:<br/>
<a id="pl.46.9"></a><var>46.9</var>    (A) the taxable estate, as defined under section 2051 of the Internal Revenue Code; <br/>
<a id="pl.46.10"></a><var>46.10</var>plus<br/>
<a id="pl.46.11"></a><var>46.11</var>    (B) adjusted taxable gifts, as defined in section 2001(b) of the Internal Revenue <br/>
<a id="pl.46.12"></a><var>46.12</var>Code; less<br/>
<a id="pl.46.13"></a><var>46.13</var>    (2) the amount of tax allowed under section 2001(b)(2) of the Internal Revenue <br/>
<a id="pl.46.14"></a><var>46.14</var>Code; and less<br/>
<a id="pl.46.15"></a><var>46.15</var>    (3) the federal credit allowed under section 2010 of the Internal Revenue Code.<br/>
<a id="pl.46.16"></a><var>46.16</var>    (c) For purposes of this subdivision, "Internal Revenue Code" means the Internal <br/>
<a id="pl.46.17"></a><var>46.17</var>Revenue Code of 1986, as amended through December 31, 2000.<br/>
<a id="pl.46.18"></a><var>46.18</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br/>
<a id="pl.46.19"></a><var>46.19</var>December 31, 2005.<br/>
<br/>
<a id="bill.4.16.0"></a><a id="pl.46.20"></a><var>46.20</var>    Sec. 16. Minnesota Statutes 2006, section 291.03, is amended by adding a subdivision <br/>
<a id="pl.46.21"></a><var>46.21</var>to read:<br/>
<a id="pl.46.22"></a><var>46.22</var>    Subd. 1a. <b>Expenses disallowed.</b> For the purposes of this section, expenses which <br/>
<a id="pl.46.23"></a><var>46.23</var>are deducted for federal income tax purposes under section 642(g) of the Internal Revenue <br/>
<a id="pl.46.24"></a><var>46.24</var>Code are not allowable in computing the tax under this chapter.<br/>
<a id="pl.46.25"></a><var>46.25</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br/>
<a id="pl.46.26"></a><var>46.26</var>December 31, 2005.<br/>
<br/>
<a id="bill.4.17.0"></a><a id="pl.46.27"></a><var>46.27</var>    Sec. 17. Laws 2008, chapter 154, article 3, section 3, the effective date, is amended to <br/>
<a id="pl.46.28"></a><var>46.28</var>read:<br/>
<a id="pl.46.29"></a><var>46.29</var><b>EFFECTIVE DATE.</b>This section is effective for tax years beginning after <br/>
<a id="pl.46.30"></a><var>46.30</var>December 31, 2007, except that clause (11) and the phrase "to the extent included in <br/>
<a id="pl.46.31"></a><var>46.31</var>federal taxable income," added in clause (12) are effective retroactively for taxable years <br/>
<a id="pl.46.32"></a><var>46.32</var>beginning after December 31, 2004.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="bill.5.1.0"></a><a id="pl.47.3"></a><var>47.3</var>    Section 1. <b>[116J.8732] SEED CAPITAL INVESTMENT CREDIT; </b><br/>
<a id="pl.47.4"></a><var>47.4</var><b>COMMISSIONER'S RESPONSIBILITIES.</b><br/>
<a id="pl.47.5"></a><var>47.5</var>    Subdivision 1. <b>Scope.</b> This section establishes rules that businesses must satisfy to <br/>
<a id="pl.47.6"></a><var>47.6</var>qualify for the seed capital investment credit under section 290.06, subdivision 34, and the <br/>
<a id="pl.47.7"></a><var>47.7</var>commissioner's responsibility for certifying the qualifying businesses. <br/>
<a id="pl.47.8"></a><var>47.8</var>    Subd. 2. <b>Definitions.</b> (a) For purposes of this section and section 290.06, <br/>
<a id="pl.47.9"></a><var>47.9</var>subdivision 34, the following terms have the meanings given.<br/>
<a id="pl.47.10"></a><var>47.10</var>    (b) "Border city" means a city qualifying to designate a border city development <br/>
<a id="pl.47.11"></a><var>47.11</var>zone under section 469.1731.<br/>
<a id="pl.47.12"></a><var>47.12</var>    (c) "Pass-through entity" means a corporation that for the applicable tax year is <br/>
<a id="pl.47.13"></a><var>47.13</var>treated as an S corporation or a general partnership, limited partnership, limited liability <br/>
<a id="pl.47.14"></a><var>47.14</var>partnership, trust, or limited liability company and which for the applicable taxable year is <br/>
<a id="pl.47.15"></a><var>47.15</var>not taxed as a corporation under chapter 290.<br/>
<a id="pl.47.16"></a><var>47.16</var>    (d) "Primary sector business" means a qualified business that through the <br/>
<a id="pl.47.17"></a><var>47.17</var>employment of knowledge or labor adds value to a product, process, or service and <br/>
<a id="pl.47.18"></a><var>47.18</var>increases revenues to a Minnesota business generated by sales of products or services to <br/>
<a id="pl.47.19"></a><var>47.19</var>customers outside of the state or increases revenues to a qualified business the customers <br/>
<a id="pl.47.20"></a><var>47.20</var>of which previously were unable to acquire, or had limited availability of the product or <br/>
<a id="pl.47.21"></a><var>47.21</var>service from a Minnesota provider.<br/>
<a id="pl.47.22"></a><var>47.22</var>    (e) "Qualified business" means a business certified by the commissioner as meeting <br/>
<a id="pl.47.23"></a><var>47.23</var>the requirements of subdivision 3.<br/>
<a id="pl.47.24"></a><var>47.24</var>    Subd. 3. <b>Qualified business.</b> (a) The commissioner shall certify whether a business <br/>
<a id="pl.47.25"></a><var>47.25</var>that has requested to become a qualified business meets the requirements of paragraph (b).<br/>
<a id="pl.47.26"></a><var>47.26</var>    (b) For purposes of this section, a qualified business must be a primary sector <br/>
<a id="pl.47.27"></a><var>47.27</var>business, other than a real estate investment trust, that:<br/>
<a id="pl.47.28"></a><var>47.28</var>    (1) is incorporated or its satellite operation is incorporated as a for-profit corporation <br/>
<a id="pl.47.29"></a><var>47.29</var>or is a partnership, limited partnership, limited liability company, limited liability <br/>
<a id="pl.47.30"></a><var>47.30</var>partnership, or joint venture;<br/>
<a id="pl.47.31"></a><var>47.31</var>    (2) is in compliance with the requirements for filings with the commissioner of <br/>
<a id="pl.47.32"></a><var>47.32</var>commerce under the securities laws of this state;<br/>
<a id="pl.47.33"></a><var>47.33</var>    (3) has Minnesota residents as a majority of its employees in its principal office or <br/>
<a id="pl.47.34"></a><var>47.34</var>the satellite operation, which is located in a border city;<br/>
<a id="pl.48.1"></a><var>48.1</var>    (4) has its principal office in a border city and has the majority of its business <br/>
<a id="pl.48.2"></a><var>48.2</var>activity performed in a border city, except sales activity, or has a significant operation in <br/>
<a id="pl.48.3"></a><var>48.3</var>a border city that has or is projected to have more than ten employees or $150,000 of <br/>
<a id="pl.48.4"></a><var>48.4</var>sales annually; and<br/>
<a id="pl.48.5"></a><var>48.5</var>    (5) relies on innovation, research, or the development of new products and processes <br/>
<a id="pl.48.6"></a><var>48.6</var>in its plans for growth and profitability.<br/>
<a id="pl.48.7"></a><var>48.7</var>    (c) The commissioner shall establish the necessary forms and procedures for <br/>
<a id="pl.48.8"></a><var>48.8</var>certifying qualified businesses.<br/>
<a id="pl.48.9"></a><var>48.9</var>    (d) A qualified business may apply to the commissioner for a recertification. Only <br/>
<a id="pl.48.10"></a><var>48.10</var>one recertification is available to a qualified business. The application for recertification <br/>
<a id="pl.48.11"></a><var>48.11</var>must be filed with the commissioner within 90 days before the original certification <br/>
<a id="pl.48.12"></a><var>48.12</var>expiration date. The recertification issued by the director must comply with the provisions <br/>
<a id="pl.48.13"></a><var>48.13</var>of paragraph (e).<br/>
<a id="pl.48.14"></a><var>48.14</var>    (e) The commissioner shall issue a certification letter to a business the commissioner <br/>
<a id="pl.48.15"></a><var>48.15</var>determines is a qualified business. The certification letter must include:<br/>
<a id="pl.48.16"></a><var>48.16</var>    (1) the certification effective date; and<br/>
<a id="pl.48.17"></a><var>48.17</var>    (2) the certification expiration date, which may not be more than four years from the <br/>
<a id="pl.48.18"></a><var>48.18</var>certification effective date.<br/>
<a id="pl.48.19"></a><var>48.19</var>    Subd. 4. <b>Seed capital investment credit reporting.</b> Within 30 days after the date <br/>
<a id="pl.48.20"></a><var>48.20</var>that an investment in a qualified business is purchased, the qualified business shall file with <br/>
<a id="pl.48.21"></a><var>48.21</var>the commissioner and the commissioner of revenue and provide to the investor completed <br/>
<a id="pl.48.22"></a><var>48.22</var>forms prescribed by the commissioner of revenue that show as to each investment in the <br/>
<a id="pl.48.23"></a><var>48.23</var>qualified business the following:<br/>
<a id="pl.48.24"></a><var>48.24</var>    (1) the name, address, and Social Security number of the taxpayer who made the <br/>
<a id="pl.48.25"></a><var>48.25</var>investment; and<br/>
<a id="pl.48.26"></a><var>48.26</var>    (2) the dollar amount paid for the investment by the taxpayer.<br/>
<a id="pl.48.27"></a><var>48.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.48.28"></a><var>48.28</var>    Sec. 2. Minnesota Statutes 2006, section 116J.993, subdivision 3, is amended to read:<br/>
<a id="pl.48.29"></a><var>48.29</var>    Subd. 3. <b>Business subsidy.</b> "Business subsidy" or "subsidy" means a state or local <br/>
<a id="pl.48.30"></a><var>48.30</var>government agency grant, contribution of personal property, real property, infrastructure, <br/>
<a id="pl.48.31"></a><var>48.31</var>the principal amount of a loan at rates below those commercially available to the recipient, <br/>
<a id="pl.48.32"></a><var>48.32</var>any reduction or deferral of any tax or any fee, any guarantee of any payment under any <br/>
<a id="pl.48.33"></a><var>48.33</var>loan, lease, or other obligation, or any preferential use of government facilities given <br/>
<a id="pl.48.34"></a><var>48.34</var>to a business.<br/>
<a id="pl.48.35"></a><var>48.35</var>    The following forms of financial assistance are not a business subsidy:<br/>
<a id="pl.49.1"></a><var>49.1</var>    (1) a business subsidy of less than $25,000 $150,000;<br/>
<a id="pl.49.2"></a><var>49.2</var>    (2) assistance that is generally available to all businesses or to a general class of <br/>
<a id="pl.49.3"></a><var>49.3</var>similar businesses, such as a line of business, size, location, or similar general criteria;<br/>
<a id="pl.49.4"></a><var>49.4</var>    (3) public improvements to buildings or lands owned by the state or local <br/>
<a id="pl.49.5"></a><var>49.5</var>government that serve a public purpose and do not principally benefit a single business or <br/>
<a id="pl.49.6"></a><var>49.6</var>defined group of businesses at the time the improvements are made;<br/>
<a id="pl.49.7"></a><var>49.7</var>    (4) redevelopment property polluted by contaminants as defined in section 
         <statute_ref>116J.552, <br/>
<a id="pl.49.8"></a><var>49.8</var>subdivision 3
         </statute_ref>; <br/>
<a id="pl.49.9"></a><var>49.9</var>    (5) assistance provided for the sole purpose of renovating old or decaying building <br/>
<a id="pl.49.10"></a><var>49.10</var>stock or bringing it up to code and assistance provided for designated historic preservation <br/>
<a id="pl.49.11"></a><var>49.11</var>districts, provided that the assistance is equal to or less than 50 percent of the total cost;<br/>
<a id="pl.49.12"></a><var>49.12</var>    (6) assistance to provide job readiness and training services if the sole purpose of <br/>
<a id="pl.49.13"></a><var>49.13</var>the assistance is to provide those services;<br/>
<a id="pl.49.14"></a><var>49.14</var>    (7) assistance for housing;<br/>
<a id="pl.49.15"></a><var>49.15</var>    (8) assistance for pollution control or abatement, including assistance for a tax <br/>
<a id="pl.49.16"></a><var>49.16</var>increment financing hazardous substance subdistrict as defined under section 
         <statute_ref>469.174, <br/>
<a id="pl.49.17"></a><var>49.17</var>subdivision 23
         </statute_ref>; <br/>
<a id="pl.49.18"></a><var>49.18</var>    (9) assistance for energy conservation;<br/>
<a id="pl.49.19"></a><var>49.19</var>    (10) tax reductions resulting from conformity with federal tax law;<br/>
<a id="pl.49.20"></a><var>49.20</var>    (11) workers' compensation and unemployment insurance;<br/>
<a id="pl.49.21"></a><var>49.21</var>    (12) benefits derived from regulation;<br/>
<a id="pl.49.22"></a><var>49.22</var>    (13) indirect benefits derived from assistance to educational institutions;<br/>
<a id="pl.49.23"></a><var>49.23</var>    (14) funds from bonds allocated under chapter 474A, bonds issued to refund <br/>
<a id="pl.49.24"></a><var>49.24</var>outstanding bonds, and bonds issued for the benefit of an organization described in section <br/>
<a id="pl.49.25"></a><var>49.25</var>501(c)(3) of the Internal Revenue Code of 1986, as amended through December 31, 1999;<br/>
<a id="pl.49.26"></a><var>49.26</var>    (15) assistance for a collaboration between a Minnesota higher education institution <br/>
<a id="pl.49.27"></a><var>49.27</var>and a business;<br/>
<a id="pl.49.28"></a><var>49.28</var>    (16) assistance for a tax increment financing soils condition district as defined under <br/>
<a id="pl.49.29"></a><var>49.29</var>section 
         <statute_ref>469.174, subdivision 19</statute_ref>; <br/>
<a id="pl.49.30"></a><var>49.30</var>    (17) redevelopment when the recipient's investment in the purchase of the site and in <br/>
<a id="pl.49.31"></a><var>49.31</var>site preparation is 70 percent or more of the assessor's current year's estimated market <br/>
<a id="pl.49.32"></a><var>49.32</var>value;<br/>
<a id="pl.49.33"></a><var>49.33</var>    (18) general changes in tax increment financing law and other general tax law <br/>
<a id="pl.49.34"></a><var>49.34</var>changes of a principally technical nature;<br/>
<a id="pl.49.35"></a><var>49.35</var>    (19) federal assistance until the assistance has been repaid to, and reinvested by, the <br/>
<a id="pl.49.36"></a><var>49.36</var>state or local government agency;<br/>
<a id="pl.50.1"></a><var>50.1</var>    (20) funds from dock and wharf bonds issued by a seaway port authority;<br/>
<a id="pl.50.2"></a><var>50.2</var>    (21) business loans and loan guarantees of $75,000 $150,000 or less; <br/>
<a id="pl.50.3"></a><var>50.3</var>    (22) federal loan funds provided through the United States Department of <br/>
<a id="pl.50.4"></a><var>50.4</var>Commerce, Economic Development Administration; and<br/>
<a id="pl.50.5"></a><var>50.5</var>    (23) property tax abatements granted under section 
         <statute_ref>469.1813</statute_ref> to property that is <br/>
<a id="pl.50.6"></a><var>50.6</var>subject to valuation under Minnesota Rules, chapter 8100.<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.50.7"></a><var>50.7</var>    Sec. 3. Minnesota Statutes 2006, section 116J.994, subdivision 2, is amended to read:<br/>
<a id="pl.50.8"></a><var>50.8</var>    Subd. 2. <b>Developing a set of criteria.</b> A business subsidy may not be granted until <br/>
<a id="pl.50.9"></a><var>50.9</var>the grantor has adopted criteria after a public hearing for awarding business subsidies <br/>
<a id="pl.50.10"></a><var>50.10</var>that comply with this section. The criteria may not be adopted on a case-by-case basis. <br/>
<a id="pl.50.11"></a><var>50.11</var>The criteria must set specific minimum requirements that recipients must meet in order <br/>
<a id="pl.50.12"></a><var>50.12</var>to be eligible to receive business subsidies. The criteria must include a specific wage <br/>
<a id="pl.50.13"></a><var>50.13</var>floor for the wages to be paid for the jobs created. The wage floor may be stated as a <br/>
<a id="pl.50.14"></a><var>50.14</var>specific dollar amount or may be stated as a formula that will generate a specific dollar <br/>
<a id="pl.50.15"></a><var>50.15</var>amount. A grantor may deviate from its criteria by documenting in writing the reason <br/>
<a id="pl.50.16"></a><var>50.16</var>for the deviation and attaching a copy of the document to its next annual report to the <br/>
<a id="pl.50.17"></a><var>50.17</var>department. The commissioner of employment and economic development may assist <br/>
<a id="pl.50.18"></a><var>50.18</var>local government agencies in developing criteria. A copy of the criteria must be submitted <br/>
<a id="pl.50.19"></a><var>50.19</var>to the Department of Employment and Economic Development along with the first annual <br/>
<a id="pl.50.20"></a><var>50.20</var>report following the enactment of this section or with the first annual report after it has <br/>
<a id="pl.50.21"></a><var>50.21</var>adopted criteria, whichever is earlier. Notwithstanding section 116J.993, subdivision 3, <br/>
<a id="pl.50.22"></a><var>50.22</var>clauses (1) and (21), for the purpose of this subdivision, "business subsidies" as defined <br/>
<a id="pl.50.23"></a><var>50.23</var>under section 116J.993 includes the following forms of financial assistance:<br/>
<a id="pl.50.24"></a><var>50.24</var>    (1) a business subsidy of $25,000 or more; and<br/>
<a id="pl.50.25"></a><var>50.25</var>    (2) business loans and guarantees of $75,000 or more.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.50.26"></a><var>50.26</var>    Sec. 4. Minnesota Statutes 2006, section 116J.994, subdivision 5, is amended to read:<br/>
<a id="pl.50.27"></a><var>50.27</var>    Subd. 5. <b>Public notice and hearing.</b> (a) Before granting a business subsidy that <br/>
<a id="pl.50.28"></a><var>50.28</var>exceeds $500,000 for a state government grantor and $100,000 $150,000 for a local <br/>
<a id="pl.50.29"></a><var>50.29</var>government grantor, the grantor must provide public notice and a hearing on the subsidy. <br/>
<a id="pl.50.30"></a><var>50.30</var>A public hearing and notice under this subdivision is not required if a hearing and notice <br/>
<a id="pl.50.31"></a><var>50.31</var>on the subsidy is otherwise required by law.<br/>
<a id="pl.50.32"></a><var>50.32</var>    (b) Public notice of a proposed business subsidy under this subdivision by a state <br/>
<a id="pl.50.33"></a><var>50.33</var>government grantor, other than the Iron Range Resources and Rehabilitation Board, must <br/>
<a id="pl.50.34"></a><var>50.34</var>be published in the State Register. Public notice of a proposed business subsidy under this <br/>
<a id="pl.51.1"></a><var>51.1</var>subdivision by a local government grantor or the Iron Range Resources and Rehabilitation <br/>
<a id="pl.51.2"></a><var>51.2</var>Board must be published in a local newspaper of general circulation. The public notice <br/>
<a id="pl.51.3"></a><var>51.3</var>must identify the location at which information about the business subsidy, including a <br/>
<a id="pl.51.4"></a><var>51.4</var>summary of the terms of the subsidy, is available. Published notice should be sufficiently <br/>
<a id="pl.51.5"></a><var>51.5</var>conspicuous in size and placement to distinguish the notice from the surrounding text. <br/>
<a id="pl.51.6"></a><var>51.6</var>The grantor must make the information available in printed paper copies and, if possible, <br/>
<a id="pl.51.7"></a><var>51.7</var>on the Internet. The government agency must provide at least a ten-day notice for the <br/>
<a id="pl.51.8"></a><var>51.8</var>public hearing.<br/>
<a id="pl.51.9"></a><var>51.9</var>    (c) The public notice must include the date, time, and place of the hearing.<br/>
<a id="pl.51.10"></a><var>51.10</var>    (d) The public hearing by a state government grantor other than the Iron Range <br/>
<a id="pl.51.11"></a><var>51.11</var>Resources and Rehabilitation Board must be held in St. Paul.<br/>
<a id="pl.51.12"></a><var>51.12</var>    (e) If more than one nonstate grantor provides a business subsidy to the same <br/>
<a id="pl.51.13"></a><var>51.13</var>recipient, the nonstate grantors may designate one nonstate grantor to hold a single <br/>
<a id="pl.51.14"></a><var>51.14</var>public hearing regarding the business subsidies provided by all nonstate grantors. For <br/>
<a id="pl.51.15"></a><var>51.15</var>the purposes of this paragraph, "nonstate grantor" includes the iron range resources and <br/>
<a id="pl.51.16"></a><var>51.16</var>rehabilitation board.<br/>
<a id="pl.51.17"></a><var>51.17</var>    (f) The public notice of any public meeting about a business subsidy agreement, <br/>
<a id="pl.51.18"></a><var>51.18</var>including those required by this subdivision and by subdivision 4, must include notice that <br/>
<a id="pl.51.19"></a><var>51.19</var>a person with residence in or the owner of taxable property in the granting jurisdiction <br/>
<a id="pl.51.20"></a><var>51.20</var>may file a written complaint with the grantor if the grantor fails to comply with sections <br/>
<statute_ref><a id="pl.51.21"></a><var>51.21</var>116J.993
         </statute_ref> to 
         <statute_ref>116J.995</statute_ref>, and that no action may be filed against the grantor for the failure to <br/>
<a id="pl.51.22"></a><var>51.22</var>comply unless a written complaint is filed.<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.51.23"></a><var>51.23</var>    Sec. 5. Minnesota Statutes 2006, section 116J.994, subdivision 8, is amended to read:<br/>
<a id="pl.51.24"></a><var>51.24</var>    Subd. 8. <b>Reports by grantors.</b> (a) Local government agencies of a local <br/>
<a id="pl.51.25"></a><var>51.25</var>government with a population of more than 2,500 and state government agencies, <br/>
<a id="pl.51.26"></a><var>51.26</var>regardless of whether or not they have awarded any business subsidies, must file a report <br/>
<a id="pl.51.27"></a><var>51.27</var>by April 1 of each year with the commissioner. Local government agencies of a local <br/>
<a id="pl.51.28"></a><var>51.28</var>government with a population of 2,500 or less are exempt from filing this report if they <br/>
<a id="pl.51.29"></a><var>51.29</var>have not awarded a business subsidy in the past five years. The report must include a list <br/>
<a id="pl.51.30"></a><var>51.30</var>of recipients that did not complete the recipient report required under subdivision 7 and a <br/>
<a id="pl.51.31"></a><var>51.31</var>list of recipients that have not met their job and wage goals within two years and the steps <br/>
<a id="pl.51.32"></a><var>51.32</var>being taken to bring them into compliance or to recoup the subsidy.<br/>
<a id="pl.51.33"></a><var>51.33</var>    If the commissioner has not received the report by April 1 from an entity required <br/>
<a id="pl.51.34"></a><var>51.34</var>to report, the commissioner shall issue a warning to the government agency. If the <br/>
<a id="pl.51.35"></a><var>51.35</var>commissioner has still not received the report by June 1 of that same year from an entity <br/>
<a id="pl.52.1"></a><var>52.1</var>required to report, then that government agency may not award any business subsidies <br/>
<a id="pl.52.2"></a><var>52.2</var>until the report has been filed.<br/>
<a id="pl.52.3"></a><var>52.3</var>    (b) The report required under paragraph (a) is also required for financial assistance <br/>
<a id="pl.52.4"></a><var>52.4</var>of $25,000 and greater that is excluded from the definition of "business subsidy" by <br/>
<a id="pl.52.5"></a><var>52.5</var>section 116J.993, subdivision 3, clause (1), and of $75,000 and greater that is excluded <br/>
<a id="pl.52.6"></a><var>52.6</var>from the definition of "business subsidy" by section 116J.993, subdivision 3, clause (21). <br/>
<a id="pl.52.7"></a><var>52.7</var>The report for the financial assistance under this paragraph must be completed within one <br/>
<a id="pl.52.8"></a><var>52.8</var>year of the granting of the financial assistance. The report required for financial assistance <br/>
<a id="pl.52.9"></a><var>52.9</var>under this paragraph must include:<br/>
<a id="pl.52.10"></a><var>52.10</var>    (1) the name of the recipient, its organizational structure, its address and contact <br/>
<a id="pl.52.11"></a><var>52.11</var>information, and its industry sector;<br/>
<a id="pl.52.12"></a><var>52.12</var>    (2) a description of the amount and use of the financial assistance and the total <br/>
<a id="pl.52.13"></a><var>52.13</var>project budget, including a list of all financial assistance by all grantors for the project and <br/>
<a id="pl.52.14"></a><var>52.14</var>the private sources of financial assistance;<br/>
<a id="pl.52.15"></a><var>52.15</var>    (3) the public purpose of the financial assistance, the job goals associated with both <br/>
<a id="pl.52.16"></a><var>52.16</var>the financial assistance and the total project in which the financial assistance is included, <br/>
<a id="pl.52.17"></a><var>52.17</var>the hourly wage of each job created, and the cost of health insurance provided by the <br/>
<a id="pl.52.18"></a><var>52.18</var>employer;<br/>
<a id="pl.52.19"></a><var>52.19</var>    (4) the date the project will be completed;<br/>
<a id="pl.52.20"></a><var>52.20</var>    (5) the name and address of the parent corporation of the recipient, if any; and<br/>
<a id="pl.52.21"></a><var>52.21</var>    (6) any other information the commissioner may request.<br/>
<a id="pl.52.22"></a><var>52.22</var>    (c) Within one year of completing a report under paragraph (b), the local government <br/>
<a id="pl.52.23"></a><var>52.23</var>agency must report to the commissioner on progress in achieving the purposes and goals <br/>
<a id="pl.52.24"></a><var>52.24</var>under clause (3).<br/>
<a id="pl.52.25"></a><var>52.25</var>    (d) The commissioner of employment and economic development must provide <br/>
<a id="pl.52.26"></a><var>52.26</var>information on reporting requirements to state and local government agencies.<br/>
<br/>
<a id="bill.5.6.0"></a><a id="pl.52.27"></a><var>52.27</var>    Sec. 6. Minnesota Statutes 2007 Supplement, section 268.19, subdivision 1, as <br/>
<a id="pl.52.28"></a><var>52.28</var>amended by Laws 2008, chapter 315, section 16, is amended to read:<br/>
<a id="pl.52.29"></a><var>52.29</var>    Subdivision 1.  <b>Use of data.</b> (a) Except as provided by this section, data gathered <br/>
<a id="pl.52.30"></a><var>52.30</var>from any person under the administration of the Minnesota Unemployment Insurance Law <br/>
<a id="pl.52.31"></a><var>52.31</var>are private data on individuals or nonpublic data not on individuals as defined in section <br/>
<statute_ref><a id="pl.52.32"></a><var>52.32</var>13.02, subdivisions 9 and 12
         </statute_ref>, and may not be disclosed except according to a district court <br/>
<a id="pl.52.33"></a><var>52.33</var>order or section 
         <statute_ref>13.05</statute_ref>. A subpoena is not considered a district court order. These data <br/>
<a id="pl.52.34"></a><var>52.34</var>may be disseminated to and used by the following agencies without the consent of the <br/>
<a id="pl.52.35"></a><var>52.35</var>subject of the data: <br/>
<a id="pl.53.1"></a><var>53.1</var>    (1) state and federal agencies specifically authorized access to the data by state <br/>
<a id="pl.53.2"></a><var>53.2</var>or federal law; <br/>
<a id="pl.53.3"></a><var>53.3</var>    (2) any agency of any other state or any federal agency charged with the <br/>
<a id="pl.53.4"></a><var>53.4</var>administration of an unemployment insurance program; <br/>
<a id="pl.53.5"></a><var>53.5</var>    (3) any agency responsible for the maintenance of a system of public employment <br/>
<a id="pl.53.6"></a><var>53.6</var>offices for the purpose of assisting individuals in obtaining employment; <br/>
<a id="pl.53.7"></a><var>53.7</var>    (4) the public authority responsible for child support in Minnesota or any other <br/>
<a id="pl.53.8"></a><var>53.8</var>state in accordance with section 
         <statute_ref>256.978</statute_ref>; <br/>
<a id="pl.53.9"></a><var>53.9</var>    (5) human rights agencies within Minnesota that have enforcement powers; <br/>
<a id="pl.53.10"></a><var>53.10</var>    (6) the Department of Revenue to the extent necessary for its duties under Minnesota <br/>
<a id="pl.53.11"></a><var>53.11</var>laws; <br/>
<a id="pl.53.12"></a><var>53.12</var>    (7) public and private agencies responsible for administering publicly financed <br/>
<a id="pl.53.13"></a><var>53.13</var>assistance programs for the purpose of monitoring the eligibility of the program's <br/>
<a id="pl.53.14"></a><var>53.14</var>recipients; <br/>
<a id="pl.53.15"></a><var>53.15</var>    (8) the Department of Labor and Industry and the Division of Insurance Fraud <br/>
<a id="pl.53.16"></a><var>53.16</var>Prevention in the Department of Commerce for uses consistent with the administration of <br/>
<a id="pl.53.17"></a><var>53.17</var>their duties under Minnesota law; <br/>
<a id="pl.53.18"></a><var>53.18</var>    (9) local and state welfare agencies for monitoring the eligibility of the data subject <br/>
<a id="pl.53.19"></a><var>53.19</var>for assistance programs, or for any employment or training program administered by those <br/>
<a id="pl.53.20"></a><var>53.20</var>agencies, whether alone, in combination with another welfare agency, or in conjunction <br/>
<a id="pl.53.21"></a><var>53.21</var>with the department or to monitor and evaluate the statewide Minnesota family investment <br/>
<a id="pl.53.22"></a><var>53.22</var>program by providing data on recipients and former recipients of food stamps or food <br/>
<a id="pl.53.23"></a><var>53.23</var>support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance <br/>
<a id="pl.53.24"></a><var>53.24</var>under chapter 119B, or medical programs under chapter 256B, 256D, or 256L; <br/>
<a id="pl.53.25"></a><var>53.25</var>    (10) local and state welfare agencies for the purpose of identifying employment, <br/>
<a id="pl.53.26"></a><var>53.26</var>wages, and other information to assist in the collection of an overpayment debt in an <br/>
<a id="pl.53.27"></a><var>53.27</var>assistance program; <br/>
<a id="pl.53.28"></a><var>53.28</var>    (11) local, state, and federal law enforcement agencies for the purpose of ascertaining <br/>
<a id="pl.53.29"></a><var>53.29</var>the last known address and employment location of an individual who is the subject of <br/>
<a id="pl.53.30"></a><var>53.30</var>a criminal investigation; <br/>
<a id="pl.53.31"></a><var>53.31</var>    (12) the United States Citizenship and Immigration Services has access to data on <br/>
<a id="pl.53.32"></a><var>53.32</var>specific individuals and specific employers provided the specific individual or specific <br/>
<a id="pl.53.33"></a><var>53.33</var>employer is the subject of an investigation by that agency; <br/>
<a id="pl.53.34"></a><var>53.34</var>    (13) the Department of Health for the purposes of epidemiologic investigations; and <br/>
<a id="pl.54.1"></a><var>54.1</var>    (14) the Department of Corrections for the purpose of preconfinement and <br/>
<a id="pl.54.2"></a><var>54.2</var>postconfinement employment tracking of committed offenders for the purpose of case <br/>
<a id="pl.54.3"></a><var>54.3</var>planning.; and <br/>
<a id="pl.54.4"></a><var>54.4</var>    (15) the state auditor to the extent necessary to conduct audits of job opportunity <br/>
<a id="pl.54.5"></a><var>54.5</var>building zones as required under section 469.3201.<br/>
<a id="pl.54.6"></a><var>54.6</var>    (b) Data on individuals and employers that are collected, maintained, or used by <br/>
<a id="pl.54.7"></a><var>54.7</var>the department in an investigation under section 
         <statute_ref>268.182</statute_ref> are confidential as to data <br/>
<a id="pl.54.8"></a><var>54.8</var>on individuals and protected nonpublic data not on individuals as defined in section <br/>
<statute_ref><a id="pl.54.9"></a><var>54.9</var>13.02, subdivisions 3 and 13
         </statute_ref>, and must not be disclosed except under statute or district <br/>
<a id="pl.54.10"></a><var>54.10</var>court order or to a party named in a criminal proceeding, administrative or judicial, for <br/>
<a id="pl.54.11"></a><var>54.11</var>preparation of a defense. <br/>
<a id="pl.54.12"></a><var>54.12</var>    (c) Data gathered by the department in the administration of the Minnesota <br/>
<a id="pl.54.13"></a><var>54.13</var>unemployment insurance program must not be made the subject or the basis for any <br/>
<a id="pl.54.14"></a><var>54.14</var>suit in any civil proceedings, administrative or judicial, unless the action is initiated by <br/>
<a id="pl.54.15"></a><var>54.15</var>the department. <br/>
<a id="pl.54.16"></a><var>54.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.7.0"></a><a id="pl.54.17"></a><var>54.17</var>    Sec. 7. Minnesota Statutes 2006, section 270B.15, is amended to read:<br/>
<a id="pl.54.18"></a><var>54.18</var><b>270B.15 DISCLOSURE TO LEGISLATIVE AUDITOR</b><b> AND STATE </b><br/>
<a id="pl.54.19"></a><var>54.19</var><b>AUDITOR</b><b>.</b><br/>
<a id="pl.54.20"></a><var>54.20</var>    (a) Returns and return information must be disclosed to the legislative auditor to the <br/>
<a id="pl.54.21"></a><var>54.21</var>extent necessary for the legislative auditor to carry out sections 
         <statute_ref>3.97</statute_ref> to 
         <statute_ref>3.979</statute_ref>. <br/>
<a id="pl.54.22"></a><var>54.22</var>    (b) The commissioner must disclose return information, including the report <br/>
<a id="pl.54.23"></a><var>54.23</var>required under section 289A.12, subdivision 15, to the state auditor to the extent necessary <br/>
<a id="pl.54.24"></a><var>54.24</var>to conduct audits of job opportunity building zones as required under section 469.3201.<br/>
<a id="pl.54.25"></a><var>54.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.8.0"></a><a id="pl.54.26"></a><var>54.26</var>    Sec. 8. Minnesota Statutes 2006, section 289A.12, is amended by adding a subdivision <br/>
<a id="pl.54.27"></a><var>54.27</var>to read:<br/>
<a id="pl.54.28"></a><var>54.28</var>    Subd. 15. <b>Report of job opportunity zone benefits; penalty for failure to file </b><br/>
<a id="pl.54.29"></a><var>54.29</var><b>report.</b> (a) By October 15 of each year, every qualified business, as defined under section <br/>
<a id="pl.54.30"></a><var>54.30</var>469.310, subdivision 11, must file with the commissioner, on a form prescribed by the <br/>
<a id="pl.54.31"></a><var>54.31</var>commissioner, a report listing the tax benefits under section 469.315 received by the <br/>
<a id="pl.54.32"></a><var>54.32</var>business for the previous year.<br/>
<a id="pl.54.33"></a><var>54.33</var>    (b) The commissioner shall send notice to each business that fails to timely submit <br/>
<a id="pl.54.34"></a><var>54.34</var>the report required under paragraph (a). The notice shall demand that the business submit <br/>
<a id="pl.55.1"></a><var>55.1</var>the report within 60 days. Where good cause exists, the commissioner may extend <br/>
<a id="pl.55.2"></a><var>55.2</var>the period for submitting the report as long as a request for extension is filed by the <br/>
<a id="pl.55.3"></a><var>55.3</var>business before the expiration of the 60-day period. The commissioner shall notify the <br/>
<a id="pl.55.4"></a><var>55.4</var>commissioner of the Department of Employment and Economic Development and the <br/>
<a id="pl.55.5"></a><var>55.5</var>appropriate job opportunity subzone administrator whenever notice is sent to a business <br/>
<a id="pl.55.6"></a><var>55.6</var>under this paragraph.<br/>
<a id="pl.55.7"></a><var>55.7</var>    (c) A business that fails to submit the report as required under paragraph (b) is no <br/>
<a id="pl.55.8"></a><var>55.8</var>longer a qualified business under section 469.310, subdivision 11, and is subject to the <br/>
<a id="pl.55.9"></a><var>55.9</var>repayment provisions of section 469.319.<br/>
<a id="pl.55.10"></a><var>55.10</var><b>EFFECTIVE DATE.</b>This section is effective beginning with reports required to be <br/>
<a id="pl.55.11"></a><var>55.11</var>filed October 15, 2008.<br/>
<br/>
<a id="bill.5.9.0"></a><a id="pl.55.12"></a><var>55.12</var>    Sec. 9. Minnesota Statutes 2006, section 290.06, is amended by adding a subdivision <br/>
<a id="pl.55.13"></a><var>55.13</var>to read:<br/>
<a id="pl.55.14"></a><var>55.14</var>    Subd. 35. <b>Seed capital investment credit.</b> (a) An individual, estate, or trust is <br/>
<a id="pl.55.15"></a><var>55.15</var>allowed a credit against the tax imposed by this chapter for investments in a qualifying <br/>
<a id="pl.55.16"></a><var>55.16</var>business certified under section 116J.8732, subdivision 3. The credit equals 45 percent <br/>
<a id="pl.55.17"></a><var>55.17</var>of the amount invested by the taxpayer in qualified businesses during the taxable year. <br/>
<a id="pl.55.18"></a><var>55.18</var>The credit must not exceed $112,500 for each taxable year. <br/>
<a id="pl.55.19"></a><var>55.19</var>    (b) A pass-through entity that invests in a qualified business must be considered to <br/>
<a id="pl.55.20"></a><var>55.20</var>be the taxpayer for purposes of the investment limitations in this subdivision and the <br/>
<a id="pl.55.21"></a><var>55.21</var>amount of the credit allowed with respect to a pass-through entity's investment in a <br/>
<a id="pl.55.22"></a><var>55.22</var>qualified business must be determined at the pass-through entity level. The amount of the <br/>
<a id="pl.55.23"></a><var>55.23</var>total credit determined at the pass-through entity level must be allowed to the members in <br/>
<a id="pl.55.24"></a><var>55.24</var>proportion to their respective interests in the pass-through entity.<br/>
<a id="pl.55.25"></a><var>55.25</var>    (c) An investment made in a qualified business from the assets of a retirement <br/>
<a id="pl.55.26"></a><var>55.26</var>plan is deemed to be the retirement plan participant's investment for the purpose of this <br/>
<a id="pl.55.27"></a><var>55.27</var>subdivision if a separate account is maintained for the plan participant and the participant <br/>
<a id="pl.55.28"></a><var>55.28</var>directly controls where the account assets are invested.<br/>
<a id="pl.55.29"></a><var>55.29</var>    (d) The investment must be made on or after the certification effective date and <br/>
<a id="pl.55.30"></a><var>55.30</var>must be at risk in the business to be eligible for the tax credit under this subdivision. <br/>
<a id="pl.55.31"></a><var>55.31</var>An investment for which a credit is received under this subdivision must remain in the <br/>
<a id="pl.55.32"></a><var>55.32</var>qualified business for at least three years. Investments placed in escrow do not qualify <br/>
<a id="pl.55.33"></a><var>55.33</var>for the credit. <br/>
<a id="pl.56.1"></a><var>56.1</var>    (e) The entire amount of an investment for which a credit is claimed under this <br/>
<a id="pl.56.2"></a><var>56.2</var>subdivision must be expended by the qualified business for plant, equipment, research and <br/>
<a id="pl.56.3"></a><var>56.3</var>development, marketing and sales activity, or working capital for the qualified business. <br/>
<a id="pl.56.4"></a><var>56.4</var>    (f) A taxpayer who owns a controlling interest in the qualified business or who <br/>
<a id="pl.56.5"></a><var>56.5</var>receives more than 50 percent of the taxpayer's gross annual income from the qualified <br/>
<a id="pl.56.6"></a><var>56.6</var>business is not entitled to a credit under this subdivision. A member of the immediate <br/>
<a id="pl.56.7"></a><var>56.7</var>family of a taxpayer disqualified by this subdivision is not entitled to the credit under this <br/>
<a id="pl.56.8"></a><var>56.8</var>subdivision. For purposes of this subdivision, "immediate family" means the taxpayer's <br/>
<a id="pl.56.9"></a><var>56.9</var>spouse, parent, sibling, or child or the spouse of any such person.<br/>
<a id="pl.56.10"></a><var>56.10</var>    (g) The commissioner may disallow any credit otherwise allowed under this <br/>
<a id="pl.56.11"></a><var>56.11</var>subdivision if any representation by a business in the application for certification as a <br/>
<a id="pl.56.12"></a><var>56.12</var>qualified business proves to be false or if the taxpayer or qualified business fails to satisfy <br/>
<a id="pl.56.13"></a><var>56.13</var>any conditions under this subdivision or section 116J.8732 or any conditions consistent <br/>
<a id="pl.56.14"></a><var>56.14</var>with those requirements otherwise determined by the commissioner. The commissioner <br/>
<a id="pl.56.15"></a><var>56.15</var>has four years after the due date of the return or after the return was filed, whichever <br/>
<a id="pl.56.16"></a><var>56.16</var>period expires later, to audit the credit and assess additional tax that may be found due <br/>
<a id="pl.56.17"></a><var>56.17</var>to failure to comply with the provisions of this subdivision and section 116J.8732. The <br/>
<a id="pl.56.18"></a><var>56.18</var>amount of any credit disallowed by the commissioner that reduced the taxpayer's income <br/>
<a id="pl.56.19"></a><var>56.19</var>tax liability for any or all applicable tax years, plus penalty and interest as provided under <br/>
<a id="pl.56.20"></a><var>56.20</var>chapter 289A, must be paid by the taxpayer. <br/>
<a id="pl.56.21"></a><var>56.21</var>    (h) If the amount of the credit under this subdivision for any taxable year exceeds <br/>
<a id="pl.56.22"></a><var>56.22</var>the limitations under paragraph (a), the excess is a credit carryover to each of the four <br/>
<a id="pl.56.23"></a><var>56.23</var>succeeding taxable years. The entire amount of the excess unused credit for the taxable <br/>
<a id="pl.56.24"></a><var>56.24</var>year must be carried first to the earliest of the taxable years to which the credit may be <br/>
<a id="pl.56.25"></a><var>56.25</var>carried. The amount of the unused credit that may be added under this paragraph may <br/>
<a id="pl.56.26"></a><var>56.26</var>not exceed the taxpayer's liability for tax, less the credit for the taxable year. Each year, <br/>
<a id="pl.56.27"></a><var>56.27</var>the aggregate amount of seed capital investment tax credit allowed for investments under <br/>
<a id="pl.56.28"></a><var>56.28</var>this subdivision is limited to allocations that a border city has available for tax reductions <br/>
<a id="pl.56.29"></a><var>56.29</var>in border city enterprise zones under section 469.169. The city must annually notify the <br/>
<a id="pl.56.30"></a><var>56.30</var>commissioner of the amount of its section 469.169 allocations that it wishes to use to <br/>
<a id="pl.56.31"></a><var>56.31</var>provide credits under this paragraph and the commissioner, after verifying the available <br/>
<a id="pl.56.32"></a><var>56.32</var>allocation, shall implement the limit under this paragraph. If investments in qualified <br/>
<a id="pl.56.33"></a><var>56.33</var>businesses reported to the commissioner exceed the limit on credits for investments <br/>
<a id="pl.56.34"></a><var>56.34</var>imposed by this subdivision, the credit must be allowed to taxpayers in the chronological <br/>
<a id="pl.56.35"></a><var>56.35</var>order of their investments in qualified businesses as determined from the forms filed <br/>
<a id="pl.56.36"></a><var>56.36</var>under section 116J.8732.<br/>
<a id="pl.57.1"></a><var>57.1</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2008, for taxable years <br/>
<a id="pl.57.2"></a><var>57.2</var>beginning after December 31, 2007, and only applies to investments made after the <br/>
<a id="pl.57.3"></a><var>57.3</var>qualified business has been certified by the commissioner of employment and economic <br/>
<a id="pl.57.4"></a><var>57.4</var>development.<br/>
<br/>
<a id="bill.5.10.0"></a><a id="pl.57.5"></a><var>57.5</var>    Sec. 10. Minnesota Statutes 2006, section 383E.20, is amended to read:<br/>
<a id="pl.57.6"></a><var>57.6</var><b>383E.20 BONDING FOR COUNTY LIBRARY BUILDINGS.</b><br/>
<a id="pl.57.7"></a><var>57.7</var>    The Anoka County Board may, by resolution adopted by a four-sevenths vote, <br/>
<a id="pl.57.8"></a><var>57.8</var>issue and sell general obligation bonds of the county in the manner provided in chapter <br/>
<a id="pl.57.9"></a><var>57.9</var>475 to acquire, better, and construct county library buildings. The bonds shall not be <br/>
<a id="pl.57.10"></a><var>57.10</var>subject to the requirements of sections 475.57 to 475.59. The maturity years and amounts <br/>
<a id="pl.57.11"></a><var>57.11</var>and interest rates of each series of bonds shall be fixed so that the maximum amount of <br/>
<a id="pl.57.12"></a><var>57.12</var>principal and interest to become due in any year, on the bonds of that series and of all <br/>
<a id="pl.57.13"></a><var>57.13</var>outstanding series issued by or for the purposes of libraries, shall not exceed an amount <br/>
<a id="pl.57.14"></a><var>57.14</var>equal to the lesser of (i) .01 percent of the taxable market value of all taxable property in <br/>
<a id="pl.57.15"></a><var>57.15</var>the county, excluding any taxable property taxed by any city for the support of any free <br/>
<a id="pl.57.16"></a><var>57.16</var>public library, or (ii) $1,250,000. When the tax levy authorized in this section is collected, <br/>
<a id="pl.57.17"></a><var>57.17</var>it shall be appropriated and credited to a debt service fund for the bonds. The tax levy for <br/>
<a id="pl.57.18"></a><var>57.18</var>the debt service fund under section 475.61 shall be reduced by the amount available or <br/>
<a id="pl.57.19"></a><var>57.19</var>reasonably anticipated to be available in the fund to make payments otherwise payable <br/>
<a id="pl.57.20"></a><var>57.20</var>from the levy pursuant to section 475.61.<br/>
<a id="pl.57.21"></a><var>57.21</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body <br/>
<a id="pl.57.22"></a><var>57.22</var>of Anoka County and its chief clerical officer timely complete their compliance with <br/>
<a id="pl.57.23"></a><var>57.23</var>Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.11.0"></a><a id="pl.57.24"></a><var>57.24</var>    Sec. 11. Minnesota Statutes 2006, section 469.033, subdivision 6, is amended to read:<br/>
<a id="pl.57.25"></a><var>57.25</var>    Subd. 6. <b>Operation area as taxing district, special tax.</b> All of the territory <br/>
<a id="pl.57.26"></a><var>57.26</var>included within the area of operation of any authority shall constitute a taxing district for <br/>
<a id="pl.57.27"></a><var>57.27</var>the purpose of levying and collecting special benefit taxes as provided in this subdivision. <br/>
<a id="pl.57.28"></a><var>57.28</var>All of the taxable property, both real and personal, within that taxing district shall be <br/>
<a id="pl.57.29"></a><var>57.29</var>deemed to be benefited by projects to the extent of the special taxes levied under this <br/>
<a id="pl.57.30"></a><var>57.30</var>subdivision. Subject to the consent by resolution of the governing body of the city in and <br/>
<a id="pl.57.31"></a><var>57.31</var>for which it was created, an authority may levy a tax upon all taxable property within that <br/>
<a id="pl.57.32"></a><var>57.32</var>taxing district. The tax shall be extended, spread, and included with and as a part of <br/>
<a id="pl.57.33"></a><var>57.33</var>the general taxes for state, county, and municipal purposes by the county auditor, to be <br/>
<a id="pl.57.34"></a><var>57.34</var>collected and enforced therewith, together with the penalty, interest, and costs. As the tax, <br/>
<a id="pl.58.1"></a><var>58.1</var>including any penalties, interest, and costs, is collected by the county treasurer it shall be <br/>
<a id="pl.58.2"></a><var>58.2</var>accumulated and kept in a separate fund to be known as the "housing and redevelopment <br/>
<a id="pl.58.3"></a><var>58.3</var>project fund." The money in the fund shall be turned over to the authority at the same time <br/>
<a id="pl.58.4"></a><var>58.4</var>and in the same manner that the tax collections for the city are turned over to the city, and <br/>
<a id="pl.58.5"></a><var>58.5</var>shall be expended only for the purposes of sections 
         <statute_ref>469.001</statute_ref> to 
         <statute_ref>469.047</statute_ref>. It shall be paid <br/>
<a id="pl.58.6"></a><var>58.6</var>out upon vouchers signed by the chair of the authority or an authorized representative. <br/>
<a id="pl.58.7"></a><var>58.7</var>The amount of the levy shall be an amount approved by the governing body of the city, but <br/>
<a id="pl.58.8"></a><var>58.8</var>shall not exceed 0.0144 0.0185 percent of taxable market value for the current levy year, <br/>
<a id="pl.58.9"></a><var>58.9</var>notwithstanding section 
<statute_ref>273.032</statute_ref>. The authority shall each year formulate and file a budget <br/>
<a id="pl.58.10"></a><var>58.10</var>in accordance with the budget procedure of the city in the same manner as required of <br/>
<a id="pl.58.11"></a><var>58.11</var>executive departments of the city or, if no budgets are required to be filed, by August 1. <br/>
<a id="pl.58.12"></a><var>58.12</var>The amount of the tax levy for the following year shall be based on that budget.<br/>
<a id="pl.58.13"></a><var>58.13</var><b>EFFECTIVE DATE.</b>This section is effective for property taxes payable in 2009.<br/>
<br/>
<a id="bill.5.12.0"></a><a id="pl.58.14"></a><var>58.14</var>    Sec. 12. Minnesota Statutes 2006, section 469.177, is amended by adding a subdivision <br/>
<a id="pl.58.15"></a><var>58.15</var>to read:<br/>
<a id="pl.58.16"></a><var>58.16</var>    Subd. 13. <b>Correction of errors.</b> (a) If the county auditor, as a result of an error <br/>
<a id="pl.58.17"></a><var>58.17</var>or mistake, decertifies a district, fails to certify a district, incorrectly certifies a district, <br/>
<a id="pl.58.18"></a><var>58.18</var>or otherwise fails to correctly compute the amount of increment, the county auditor may <br/>
<a id="pl.58.19"></a><var>58.19</var>undertake one or more of the following actions to correct the error or mistake:<br/>
<a id="pl.58.20"></a><var>58.20</var>    (1) certify the original tax capacity of the affected parcels at the appropriate value <br/>
<a id="pl.58.21"></a><var>58.21</var>for a later taxes payable year and extend the duration of the district, in whole or in part, <br/>
<a id="pl.58.22"></a><var>58.22</var>to compensate;<br/>
<a id="pl.58.23"></a><var>58.23</var>    (2) recertify the affected parcels and extend duration of the district, in whole or in <br/>
<a id="pl.58.24"></a><var>58.24</var>part, to compensate;<br/>
<a id="pl.58.25"></a><var>58.25</var>    (3) recertify or correct the original tax capacity rate for the district;<br/>
<a id="pl.58.26"></a><var>58.26</var>    (4) adjust the tax rates of one or more of the taxing districts imposing taxes in the tax <br/>
<a id="pl.58.27"></a><var>58.27</var>increment financing districts for one or more years to recoup amounts advanced by the <br/>
<a id="pl.58.28"></a><var>58.28</var>county or other entity to the authority to replace the reduced increments; or<br/>
<a id="pl.58.29"></a><var>58.29</var>    (5) take other appropriate action so that the amount of increment compensates for or <br/>
<a id="pl.58.30"></a><var>58.30</var>offsets the error or mistake and correctly reflects application of the law.<br/>
<a id="pl.58.31"></a><var>58.31</var>    (b) At least 30 days before exercising authority under this subdivision, the county <br/>
<a id="pl.58.32"></a><var>58.32</var>auditor must notify the authority and the municipality, in writing, of the intent to do so, <br/>
<a id="pl.58.33"></a><var>58.33</var>including supporting information to describe reason for the proposed action. The authority <br/>
<a id="pl.58.34"></a><var>58.34</var>and municipality may waive the time requirement of this paragraph. If the city or the <br/>
<a id="pl.58.35"></a><var>58.35</var>authority objects before expiration of the 30-day period, the matter must be submitted to <br/>
<a id="pl.59.1"></a><var>59.1</var>the commissioner of revenue for a decision or resolution of the dispute. The commissioner <br/>
<a id="pl.59.2"></a><var>59.2</var>of revenue shall consult with the Office of the State Auditor before making a decision.<br/>
<a id="pl.59.3"></a><var>59.3</var>    (c) The county auditor must notify the commissioner of revenue and the Office <br/>
<a id="pl.59.4"></a><var>59.4</var>of the State Auditor of corrections made under this subdivision. The notification must <br/>
<a id="pl.59.5"></a><var>59.5</var>be made in the form and manner and at the time prescribed by the commissioner. The <br/>
<a id="pl.59.6"></a><var>59.6</var>commissioner shall incorporate the corrections in the tax increment financing district tax <br/>
<a id="pl.59.7"></a><var>59.7</var>list supplement, as appropriate.<br/>
<a id="pl.59.8"></a><var>59.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.59.9"></a><var>59.9</var>and applies to all tax increment financing districts, regardless of when the request for <br/>
<a id="pl.59.10"></a><var>59.10</var>certification was made or when the error occurred.<br/>
<br/>
<a id="bill.5.13.0"></a><a id="pl.59.11"></a><var>59.11</var>    Sec. 13. Minnesota Statutes 2006, section 469.319, is amended to read:<br/>
<a id="pl.59.12"></a><var>59.12</var><b>469.319 REPAYMENT OF TAX BENEFITS</b><b> BY BUSINESSES THAT NO </b><br/>
<a id="pl.59.13"></a><var>59.13</var><b>LONGER OPERATE IN A ZONE</b><b>.</b><br/>
<a id="pl.59.14"></a><var>59.14</var>    Subdivision 1. <b>Repayment obligation.</b> A business must repay the amount of the <br/>
<a id="pl.59.15"></a><var>59.15</var>total tax reduction benefits listed in section 
         <statute_ref>469.315</statute_ref> and any refund under section 
<statute_ref>469.318</statute_ref> <br/>
<a id="pl.59.16"></a><var>59.16</var>in excess of tax liability, received during the two years immediately before it (1) ceased to <br/>
<a id="pl.59.17"></a><var>59.17</var>operate in the zone, if the business:<br/>
<a id="pl.59.18"></a><var>59.18</var>    (1) received tax reductions authorized by section 
<statute_ref>469.315</statute_ref>; and<br/>
<a id="pl.59.19"></a><var>59.19</var>    (2)(i) did not meet the goals specified in an agreement entered into with the applicant <br/>
<a id="pl.59.20"></a><var>59.20</var>that states any obligation the qualified business must fulfill in order to be eligible for tax <br/>
<a id="pl.59.21"></a><var>59.21</var>benefits. The commissioner of employment and economic development may extend for <br/>
<a id="pl.59.22"></a><var>59.22</var>up to one year the period for meeting any goals provided in an agreement. The applicant <br/>
<a id="pl.59.23"></a><var>59.23</var>may extend the period for meeting other goals by documenting in writing the reason <br/>
<a id="pl.59.24"></a><var>59.24</var>for the extension and attaching a copy of the document to its next annual report to the <br/>
<a id="pl.59.25"></a><var>59.25</var>commissioner of employment and economic development; or<br/>
<a id="pl.59.26"></a><var>59.26</var>    (ii) ceased to operate its facility located within the job opportunity building zone <br/>
<a id="pl.59.27"></a><var>59.27</var>perform a substantial level of activities described in the business subsidy agreement, or <br/>
<a id="pl.59.28"></a><var>59.28</var>(2) otherwise ceases ceased to be or is not a qualified business, other than those subject to <br/>
<a id="pl.59.29"></a><var>59.29</var>the provisions of section 469.3191.<br/>
<a id="pl.59.30"></a><var>59.30</var>    Subd. 1a. <b>Repayment obligation of businesses not operating in zone.</b> Persons <br/>
<a id="pl.59.31"></a><var>59.31</var>that receive benefits without operating a business in a zone are subject to repayment <br/>
<a id="pl.59.32"></a><var>59.32</var>under this section if the business for which those benefits relate is subject to repayment <br/>
<a id="pl.59.33"></a><var>59.33</var>under this section. Such persons are deemed to have ceased performing in the zone on <br/>
<a id="pl.60.1"></a><var>60.1</var>the same day that the qualified business for which the benefits relate becomes subject to <br/>
<a id="pl.60.2"></a><var>60.2</var>repayment under subdivision 1.<br/>
<a id="pl.60.3"></a><var>60.3</var>    Subd. 2. <b>Definitions.</b> (a) For purposes of this section, the following terms have <br/>
<a id="pl.60.4"></a><var>60.4</var>the meanings given.<br/>
<a id="pl.60.5"></a><var>60.5</var>    (b) "Business" means any person who that received tax benefits enumerated in <br/>
<a id="pl.60.6"></a><var>60.6</var>section 
         <statute_ref>469.315</statute_ref>. <br/>
<a id="pl.60.7"></a><var>60.7</var>    (c) "Commissioner" means the commissioner of revenue.<br/>
<a id="pl.60.8"></a><var>60.8</var>    (d) "Persons that receive benefits without operating a business in a zone" means <br/>
<a id="pl.60.9"></a><var>60.9</var>persons that claim benefits under section 469.316, subdivision 2 or 4, as well as persons <br/>
<a id="pl.60.10"></a><var>60.10</var>that own property leased by a qualified business and are eligible for benefits under section <br/>
<a id="pl.60.11"></a><var>60.11</var>272.02, subdivision 64, or 297A.68, subdivision 37, paragraph (b).<br/>
<a id="pl.60.12"></a><var>60.12</var>    Subd. 3. <b>Disposition of repayment.</b> The repayment must be paid to the state to <br/>
<a id="pl.60.13"></a><var>60.13</var>the extent it represents a state tax reduction and to the county to the extent it represents a <br/>
<a id="pl.60.14"></a><var>60.14</var>property tax reduction. Any amount repaid to the state must be deposited in the general <br/>
<a id="pl.60.15"></a><var>60.15</var>fund. Any amount repaid to the county for the property tax exemption must be distributed <br/>
<a id="pl.60.16"></a><var>60.16</var>to the local governments  taxing authorities with authority to levy taxes in the zone in the <br/>
<a id="pl.60.17"></a><var>60.17</var>same manner provided for distribution of payment of delinquent property taxes. Any <br/>
<a id="pl.60.18"></a><var>60.18</var>repayment of local sales taxes must be repaid to the commissioner for distribution to the <br/>
<a id="pl.60.19"></a><var>60.19</var>city or county imposing the local sales tax.<br/>
<a id="pl.60.20"></a><var>60.20</var>    Subd. 4. <b>Repayment procedures.</b> (a) For the repayment of taxes imposed under <br/>
<a id="pl.60.21"></a><var>60.21</var>chapter 290 or 297A or local taxes collected pursuant to section 
         <statute_ref>297A.99</statute_ref>, a business must <br/>
<a id="pl.60.22"></a><var>60.22</var>file an amended return with the commissioner of revenue and pay any taxes required <br/>
<a id="pl.60.23"></a><var>60.23</var>to be repaid within 30 days after ceasing to do business in the zone becoming subject <br/>
<a id="pl.60.24"></a><var>60.24</var>to repayment under this section. The amount required to be repaid is determined by <br/>
<a id="pl.60.25"></a><var>60.25</var>calculating the tax for the period or periods for which repayment is required without <br/>
<a id="pl.60.26"></a><var>60.26</var>regard to the exemptions and credits allowed under section 
         <statute_ref>469.315</statute_ref>.<br/>
<a id="pl.60.27"></a><var>60.27</var>    (b) For the repayment of taxes imposed under chapter 297B, a business must pay any <br/>
<a id="pl.60.28"></a><var>60.28</var>taxes required to be repaid to the motor vehicle registrar, as agent for the commissioner <br/>
<a id="pl.60.29"></a><var>60.29</var>of revenue, within 30 days after ceasing to do business in the zone becoming subject <br/>
<a id="pl.60.30"></a><var>60.30</var>to repayment under this section.<br/>
<a id="pl.60.31"></a><var>60.31</var>    (c) For the repayment of property taxes, the county auditor shall prepare a tax <br/>
<a id="pl.60.32"></a><var>60.32</var>statement for the business, applying the applicable tax extension rates for each payable <br/>
<a id="pl.60.33"></a><var>60.33</var>year and provide a copy to the business and to the taxpayer of record. The business must <br/>
<a id="pl.60.34"></a><var>60.34</var>pay the taxes to the county treasurer within 30 days after receipt of the tax statement. <br/>
<a id="pl.61.1"></a><var>61.1</var>The business or the taxpayer of record may appeal the valuation and determination of the <br/>
<a id="pl.61.2"></a><var>61.2</var>property tax to the Tax Court within 30 days after receipt of the tax statement.<br/>
<a id="pl.61.3"></a><var>61.3</var>    (d) The provisions of chapters 270C and 289A relating to the commissioner's <br/>
<a id="pl.61.4"></a><var>61.4</var>authority to audit, assess, and collect the tax and to hear appeals are applicable to the <br/>
<a id="pl.61.5"></a><var>61.5</var>repayment required under paragraphs (a) and (b). The commissioner may impose civil <br/>
<a id="pl.61.6"></a><var>61.6</var>penalties as provided in chapter 289A, and the additional tax and penalties are subject to <br/>
<a id="pl.61.7"></a><var>61.7</var>interest at the rate provided in section 
         <statute_ref>270C.40</statute_ref>, from 30 days after ceasing to do business <br/>
<a id="pl.61.8"></a><var>61.8</var>in the job opportunity building zone becoming subject to repayment under this section <br/>
<a id="pl.61.9"></a><var>61.9</var>until the date the tax is paid.<br/>
<a id="pl.61.10"></a><var>61.10</var>    (e) If a property tax is not repaid under paragraph (c), the county treasurer shall add <br/>
<a id="pl.61.11"></a><var>61.11</var>the amount required to be repaid to the property taxes assessed against the property for <br/>
<a id="pl.61.12"></a><var>61.12</var>payment in the year following the year in which the treasurer discovers that the business <br/>
<a id="pl.61.13"></a><var>61.13</var>ceased to operate in the job opportunity building zone auditor provided the statement <br/>
<a id="pl.61.14"></a><var>61.14</var>under paragraph (c).<br/>
<a id="pl.61.15"></a><var>61.15</var>    (f) For determining the tax required to be repaid, a tax reduction of a state or local <br/>
<a id="pl.61.16"></a><var>61.16</var>sales or use tax is deemed to have been received on the date that the tax would have <br/>
<a id="pl.61.17"></a><var>61.17</var>been due if the taxpayer had not been entitled to the exemption or on the date a refund <br/>
<a id="pl.61.18"></a><var>61.18</var>was issued for a refundable tax credit. good or service was purchased or first put to a <br/>
<a id="pl.61.19"></a><var>61.19</var>taxable use. In the case of an income tax or franchise tax, including the credit payable <br/>
<a id="pl.61.20"></a><var>61.20</var>under section 469.318, a reduction of tax is deemed to have been received for the two <br/>
<a id="pl.61.21"></a><var>61.21</var>most recent tax years that have ended prior to the date that the business became subject to <br/>
<a id="pl.61.22"></a><var>61.22</var>repayment under this section. In the case of a property tax, a reduction of tax is deemed to <br/>
<a id="pl.61.23"></a><var>61.23</var>have been received for the taxes payable in the year that the business became subject to <br/>
<a id="pl.61.24"></a><var>61.24</var>repayment under this section and for the taxes payable in the prior year.<br/>
<a id="pl.61.25"></a><var>61.25</var>    (g) The commissioner may assess the repayment of taxes under paragraph (d) <br/>
<a id="pl.61.26"></a><var>61.26</var>any time within two years after the business ceases to operate in the job opportunity <br/>
<a id="pl.61.27"></a><var>61.27</var>building zone becomes subject to repayment under subdivision 1, or within any period of <br/>
<a id="pl.61.28"></a><var>61.28</var>limitations for the assessment of tax under section 
         <statute_ref>289A.38</statute_ref>, whichever period is later. The <br/>
<a id="pl.61.29"></a><var>61.29</var>county auditor may send the statement under paragraph (c) any time within three years <br/>
<a id="pl.61.30"></a><var>61.30</var>after the business becomes subject to repayment under subdivision 1.<br/>
<a id="pl.61.31"></a><var>61.31</var>    (h) A business is not entitled to any income tax or franchise tax benefits, including <br/>
<a id="pl.61.32"></a><var>61.32</var>refundable credits, for any part of the year in which the business becomes subject to <br/>
<a id="pl.61.33"></a><var>61.33</var>repayment under this section nor for any year thereafter. Property is not exempt from tax <br/>
<a id="pl.61.34"></a><var>61.34</var>under section 272.02, subdivision 64, for any taxes payable in the year following the year <br/>
<a id="pl.61.35"></a><var>61.35</var>in which the property became subject to repayment under this section nor for any year <br/>
<a id="pl.61.36"></a><var>61.36</var>thereafter. A business is not eligible for any sales tax benefits beginning with goods <br/>
<a id="pl.62.1"></a><var>62.1</var>or services purchased or first put to a taxable use on the day that the business becomes <br/>
<a id="pl.62.2"></a><var>62.2</var>subject to repayment under this section.<br/>
<a id="pl.62.3"></a><var>62.3</var>    Subd. 5. <b>Waiver authority.</b> (a) The commissioner may waive all or part of a <br/>
<a id="pl.62.4"></a><var>62.4</var>repayment required under subdivision 1, if the commissioner, in consultation with <br/>
<a id="pl.62.5"></a><var>62.5</var>the commissioner of employment and economic development and appropriate officials <br/>
<a id="pl.62.6"></a><var>62.6</var>from the local government units in which the qualified business is located, determines <br/>
<a id="pl.62.7"></a><var>62.7</var>that requiring repayment of the tax is not in the best interest of the state or the local <br/>
<a id="pl.62.8"></a><var>62.8</var>government units and the business ceased operating as a result of circumstances beyond <br/>
<a id="pl.62.9"></a><var>62.9</var>its control including, but not limited to:<br/>
<a id="pl.62.10"></a><var>62.10</var>    (1) a natural disaster;<br/>
<a id="pl.62.11"></a><var>62.11</var>    (2) unforeseen industry trends; or<br/>
<a id="pl.62.12"></a><var>62.12</var>    (3) loss of a major supplier or customer.<br/>
<a id="pl.62.13"></a><var>62.13</var>    (b)(1) The commissioner shall waive repayment required under subdivision 1a if <br/>
<a id="pl.62.14"></a><var>62.14</var>the commissioner has waived repayment by the operating business under subdivision 1, <br/>
<a id="pl.62.15"></a><var>62.15</var>unless the person that received benefits without having to operate a business in the zone <br/>
<a id="pl.62.16"></a><var>62.16</var>was a contributing factor in the qualified business becoming subject to repayment under <br/>
<a id="pl.62.17"></a><var>62.17</var>subdivision 1; <br/>
<a id="pl.62.18"></a><var>62.18</var>    (2) the commissioner shall waive the repayment required under subdivision 1a, even <br/>
<a id="pl.62.19"></a><var>62.19</var>if the repayment has not been waived for the operating business if:<br/>
<a id="pl.62.20"></a><var>62.20</var>    (i) the person that received benefits without having to operate a business in the zone <br/>
<a id="pl.62.21"></a><var>62.21</var>and the business that operated in the zone are not related parties as defined in section <br/>
<a id="pl.62.22"></a><var>62.22</var>267(b) of the Internal Revenue Code of 1986, as amended through December 31, 2007; and<br/>
<a id="pl.62.23"></a><var>62.23</var>    (ii) actions of the person were not a contributing factor in the qualified business <br/>
<a id="pl.62.24"></a><var>62.24</var>becoming subject to repayment under subdivision 1.<br/>
<a id="pl.62.25"></a><var>62.25</var>    Subd. 6. <b>Reconciliation.</b> Where this section is inconsistent with section 
         <statute_ref>116J.994, <br/>
<a id="pl.62.26"></a><var>62.26</var>subdivision 3
         </statute_ref>, paragraph (e), or 6, or any other provisions of sections 
         <statute_ref>116J.993</statute_ref> to <br/>
<statute_ref><a id="pl.62.27"></a><var>62.27</var>116J.995
         </statute_ref>, this section prevails.<br/>
<a id="pl.62.28"></a><var>62.28</var><b>EFFECTIVE DATE.</b>The amendment to subdivision 4, paragraph (c), of this <br/>
<a id="pl.62.29"></a><var>62.29</var>section is effective the day following final enactment. The amendment to subdivision <br/>
<a id="pl.62.30"></a><var>62.30</var>4, paragraph (f), is effective retroactively from January 1, 2008, and applies to all <br/>
<a id="pl.62.31"></a><var>62.31</var>businesses that become subject to this section in 2008. The rest of this section is effective <br/>
<a id="pl.62.32"></a><var>62.32</var>retroactively from January 1, 2004, except that for violations that occur before the day <br/>
<a id="pl.62.33"></a><var>62.33</var>following final enactment, this section does not apply if the business has repaid the <br/>
<a id="pl.62.34"></a><var>62.34</var>benefits or the commissioner has granted a waiver.<br/>
<br/>
<a id="bill.5.14.0"></a><a id="pl.63.1"></a><var>63.1</var>    Sec. 14. <b>[469.3191] BREACH OF AGREEMENTS BY BUSINESSES THAT </b><br/>
<a id="pl.63.2"></a><var>63.2</var><b>CONTINUE TO OPERATE IN ZONE.</b><br/>
<a id="pl.63.3"></a><var>63.3</var>    (a) A "business in violation of its business subsidy agreement but not subject to <br/>
<a id="pl.63.4"></a><var>63.4</var>section 469.319" means a business that is operating in violation of the business subsidy <br/>
<a id="pl.63.5"></a><var>63.5</var>agreement but maintains a level of operations in the zone that does not subject it to the <br/>
<a id="pl.63.6"></a><var>63.6</var>repayment provisions of section 469.319, subdivision 1, clause (1). <br/>
<a id="pl.63.7"></a><var>63.7</var>    (b) A business described in paragraph (a) that does not sign a new or amended <br/>
<a id="pl.63.8"></a><var>63.8</var>business subsidy agreement, as authorized under paragraph (h), is subject to repayment <br/>
<a id="pl.63.9"></a><var>63.9</var>of benefits under section 469.319 from the day that it ceases to perform in the zone a <br/>
<a id="pl.63.10"></a><var>63.10</var>substantial level of activities described in the business subsidy agreement. <br/>
<a id="pl.63.11"></a><var>63.11</var>    (c) A business described in paragraph (a) ceases being a qualified business after the <br/>
<a id="pl.63.12"></a><var>63.12</var>last day that it has to meet the goals stated in the agreement.<br/>
<a id="pl.63.13"></a><var>63.13</var>    (d) A business is not entitled to any income tax or franchise tax benefits, including <br/>
<a id="pl.63.14"></a><var>63.14</var>refundable credits, for any part of the year in which the business is no longer a qualified <br/>
<a id="pl.63.15"></a><var>63.15</var>business under paragraph (c), and thereafter. A business is not eligible for sales tax <br/>
<a id="pl.63.16"></a><var>63.16</var>benefits beginning with goods or services purchased or put to a taxable use on the day that <br/>
<a id="pl.63.17"></a><var>63.17</var>it is no longer a qualified business under paragraph (c). Property is not exempt from tax <br/>
<a id="pl.63.18"></a><var>63.18</var>under section 272.02, subdivision 64, for any taxes payable in the year following the year <br/>
<a id="pl.63.19"></a><var>63.19</var>in which the business is no longer a qualified business under paragraph (c), and thereafter.<br/>
<a id="pl.63.20"></a><var>63.20</var>    (e) A business described in paragraph (a) that wants to resume eligibility for benefits <br/>
<a id="pl.63.21"></a><var>63.21</var>under section 469.315 must request that the commissioner of employment and economic <br/>
<a id="pl.63.22"></a><var>63.22</var>development determine the length of time that the business is ineligible for benefits. The <br/>
<a id="pl.63.23"></a><var>63.23</var>commissioner shall determine the length of ineligibility by applying the proportionate <br/>
<a id="pl.63.24"></a><var>63.24</var>level of performance under the agreement to the total duration of the zone as measured <br/>
<a id="pl.63.25"></a><var>63.25</var>from the date that the business subsidy agreement was executed. The length of time <br/>
<a id="pl.63.26"></a><var>63.26</var>must not be less than one full year for each tax benefit listed in section 469.315. The <br/>
<a id="pl.63.27"></a><var>63.27</var>commissioner of employment and economic development and the appropriate local <br/>
<a id="pl.63.28"></a><var>63.28</var>government officials shall consult with the commissioner of revenue to ensure that the <br/>
<a id="pl.63.29"></a><var>63.29</var>period of ineligibility includes at least one full year of benefits for each tax. <br/>
<a id="pl.63.30"></a><var>63.30</var>    (f) The length of ineligibility determined under paragraph (e) must be applied by <br/>
<a id="pl.63.31"></a><var>63.31</var>reducing the zone duration for the property by the duration of the ineligibility.<br/>
<a id="pl.63.32"></a><var>63.32</var>    (g) The zone duration of property that has been adjusted under paragraph (f) must <br/>
<a id="pl.63.33"></a><var>63.33</var>not be altered again to permit the business additional benefits under section 469.315.<br/>
<a id="pl.63.34"></a><var>63.34</var>    (h) A business described in paragraph (a) becomes eligible for benefits available <br/>
<a id="pl.63.35"></a><var>63.35</var>under section 469.315 by entering into a new or amended business subsidy agreement <br/>
<a id="pl.63.36"></a><var>63.36</var>with the appropriate local government unit. The new or amended agreement must cover <br/>
<a id="pl.64.1"></a><var>64.1</var>a period beginning from the date of ineligibility under the original business subsidy <br/>
<a id="pl.64.2"></a><var>64.2</var>agreement, through the zone duration determined by the commissioner under paragraph <br/>
<a id="pl.64.3"></a><var>64.3</var>(f). No exemption of property taxes under section 272.02, subdivision 64, is available <br/>
<a id="pl.64.4"></a><var>64.4</var>under the new or amended agreement for property taxes due or paid before the date of <br/>
<a id="pl.64.5"></a><var>64.5</var>the final execution of the new or amended agreement, but unpaid taxes due after that <br/>
<a id="pl.64.6"></a><var>64.6</var>date need not be paid.<br/>
<a id="pl.64.7"></a><var>64.7</var>    (i) A business that violates the terms of an agreement authorized under paragraph <br/>
<a id="pl.64.8"></a><var>64.8</var>(h) is permanently barred from seeking benefits under section 469.315 and is subject to <br/>
<a id="pl.64.9"></a><var>64.9</var>the repayment provisions under section 469.319 effective from the day that the business <br/>
<a id="pl.64.10"></a><var>64.10</var>ceases to operate as a qualified business in the zone under the second agreement. <br/>
<a id="pl.64.11"></a><var>64.11</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from January 1, 2004. <br/>
<a id="pl.64.12"></a><var>64.12</var>For violations that occur before the day following final enactment, this section does not <br/>
<a id="pl.64.13"></a><var>64.13</var>apply if the business has repaid the benefits or the commissioner has granted a waiver. <br/>
<br/>
<a id="bill.5.15.0"></a><a id="pl.64.14"></a><var>64.14</var>    Sec. 15. <b>[469.3192] PROHIBITION AGAINST AMENDMENTS TO BUSINESS </b><br/>
<a id="pl.64.15"></a><var>64.15</var><b>SUBSIDY AGREEMENT.</b><br/>
<a id="pl.64.16"></a><var>64.16</var>    Except as authorized under section 469.3191, under no circumstance shall terms <br/>
<a id="pl.64.17"></a><var>64.17</var>of any agreement required as a condition for eligibility for benefits listed under section <br/>
<a id="pl.64.18"></a><var>64.18</var>469.315 be amended to change job creation, job retention, or wage goals included in <br/>
<a id="pl.64.19"></a><var>64.19</var>the agreement.<br/>
<a id="pl.64.20"></a><var>64.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.64.21"></a><var>64.21</var>and applies to all agreements executed before, on, or after the effective date.<br/>
<br/>
<a id="bill.5.16.0"></a><a id="pl.64.22"></a><var>64.22</var>    Sec. 16. <b>[469.3193] CERTIFICATION OF CONTINUING ELIGIBILITY FOR </b><br/>
<a id="pl.64.23"></a><var>64.23</var><b>JOBZ BENEFITS.</b><br/>
<a id="pl.64.24"></a><var>64.24</var>    (a) By December 1 of each year, every qualified business must certify to the <br/>
<a id="pl.64.25"></a><var>64.25</var>commissioner of revenue, on a form prescribed by the commissioner of revenue, whether <br/>
<a id="pl.64.26"></a><var>64.26</var>it is in compliance with any agreement required as a condition for eligibility for benefits <br/>
<a id="pl.64.27"></a><var>64.27</var>listed under section 469.315. A business that fails to submit the certification, or any <br/>
<a id="pl.64.28"></a><var>64.28</var>business, including those still operating in the zone, that submits a certification that <br/>
<a id="pl.64.29"></a><var>64.29</var>the commissioner of revenue later determines materially misrepresents the business's <br/>
<a id="pl.64.30"></a><var>64.30</var>compliance with the agreement, is subject to the repayment provisions under section <br/>
<a id="pl.64.31"></a><var>64.31</var>469.319 from January 1 of the year in which the report is due or the date that the business <br/>
<a id="pl.64.32"></a><var>64.32</var>became subject to section 469.319, whichever is earlier. Any such business is permanently <br/>
<a id="pl.64.33"></a><var>64.33</var>barred from obtaining benefits under section 469.315. For purposes of this section, the bar <br/>
<a id="pl.65.1"></a><var>65.1</var>applies to an entity and also applies to any individuals or entities that have an ownership <br/>
<a id="pl.65.2"></a><var>65.2</var>interest of at least 20 percent of the entity.<br/>
<a id="pl.65.3"></a><var>65.3</var>    (b) Before the sanctions under paragraph (a) apply to a business that fails to <br/>
<a id="pl.65.4"></a><var>65.4</var>submit the certification, the commissioner of revenue shall send notice to the business, <br/>
<a id="pl.65.5"></a><var>65.5</var>demanding that the certification be submitted within 30 days and advising the business <br/>
<a id="pl.65.6"></a><var>65.6</var>of the consequences for failing to do so. The commissioner of revenue shall notify <br/>
<a id="pl.65.7"></a><var>65.7</var>the commissioner of employment and economic development and the appropriate job <br/>
<a id="pl.65.8"></a><var>65.8</var>opportunity subzone administrator whenever notice is sent to a business under this <br/>
<a id="pl.65.9"></a><var>65.9</var>paragraph.<br/>
<a id="pl.65.10"></a><var>65.10</var>    (c) The certification required under this section is public. <br/>
<a id="pl.65.11"></a><var>65.11</var>    (d) The commissioner of revenue shall promptly notify the commissioner of <br/>
<a id="pl.65.12"></a><var>65.12</var>employment and economic development of all businesses that certify that they are not <br/>
<a id="pl.65.13"></a><var>65.13</var>in compliance with the terms of their business subsidy agreement and all businesses <br/>
<a id="pl.65.14"></a><var>65.14</var>that fail to file the certification.<br/>
<a id="pl.65.15"></a><var>65.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.17.0"></a><a id="pl.65.16"></a><var>65.16</var>    Sec. 17. Minnesota Statutes 2006, section 469.3201, is amended to read:<br/>
<a id="pl.65.17"></a><var>65.17</var><b>469.3201 </b><b>JOBZ EXPENDITURE LIMITATIONS; AUDITS</b><b> STATE </b><br/>
<a id="pl.65.18"></a><var>65.18</var><b>AUDITOR; AUDITS OF JOB OPPORTUNITY BUILDING ZONES AND </b><br/>
<a id="pl.65.19"></a><var>65.19</var><b>BUSINESS SUBSIDY AGREEMENTS</b><b>.</b><br/>
<a id="pl.65.20"></a><var>65.20</var>    The Tax Increment Financing, Investment and Finance Division of the Office of the <br/>
<a id="pl.65.21"></a><var>65.21</var>State Auditor must annually audit the creation and operation of all job opportunity building <br/>
<a id="pl.65.22"></a><var>65.22</var>zones and business subsidy agreements entered into under Minnesota Statutes, sections <br/>
<statute_ref><a id="pl.65.23"></a><var>65.23</var>469.310
         </statute_ref> to 
         <statute_ref>469.320</statute_ref>. To the extent necessary to perform this audit, the state auditor may <br/>
<a id="pl.65.24"></a><var>65.24</var>request from the commissioner of revenue tax return information of taxpayers who are <br/>
<a id="pl.65.25"></a><var>65.25</var>eligible to receive tax benefits authorized under section 469.315. To the extent necessary <br/>
<a id="pl.65.26"></a><var>65.26</var>to perform this audit, the state auditor may request from the commissioner of employment <br/>
<a id="pl.65.27"></a><var>65.27</var>and economic development wage detail report information required under section 268.044 <br/>
<a id="pl.65.28"></a><var>65.28</var>of taxpayers eligible to receive tax benefits authorized under section 469.315.<br/>
<a id="pl.65.29"></a><var>65.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.18.0"></a><a id="pl.65.30"></a><var>65.30</var>    Sec. 18. Minnesota Statutes 2006, section 473.39, is amended by adding a subdivision <br/>
<a id="pl.65.31"></a><var>65.31</var>to read:<br/>
<a id="pl.65.32"></a><var>65.32</var>    Subd. 1n. <b>Obligations.</b> After July 1, 2008, in addition to other authority in this <br/>
<a id="pl.65.33"></a><var>65.33</var>section, the council may issue certificates of indebtedness, bonds, or other obligations <br/>
<a id="pl.65.34"></a><var>65.34</var>under this section in an amount not exceeding $33,000,000 for capital expenditures as <br/>
<a id="pl.66.1"></a><var>66.1</var>prescribed in the council's regional transit master plan and transit capital improvement <br/>
<a id="pl.66.2"></a><var>66.2</var>program and for related costs, including the costs of issuance and sale of the obligations.<br/>
<a id="pl.66.3"></a><var>66.3</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2008, and applies in the <br/>
<a id="pl.66.4"></a><var>66.4</var>counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.<br/>
<br/>
<a id="bill.5.19.0"></a><a id="pl.66.5"></a><var>66.5</var>    Sec. 19. Minnesota Statutes 2006, section 474A.047, subdivision 1, is amended to read:<br/>
<a id="pl.66.6"></a><var>66.6</var>    Subdivision 1. <b>Eligibility.</b> (a) An issuer may only use the proceeds from residential <br/>
<a id="pl.66.7"></a><var>66.7</var>rental bonds if the proposed project meets the following requirements:<br/>
<a id="pl.66.8"></a><var>66.8</var>    (1) the proposed residential rental project meets the requirements of section 142(d) <br/>
<a id="pl.66.9"></a><var>66.9</var>of the Internal Revenue Code regarding the incomes of the occupants of the housing; and<br/>
<a id="pl.66.10"></a><var>66.10</var>    (2) the maximum rent for at least 20 percent of the units in the proposed residential <br/>
<a id="pl.66.11"></a><var>66.11</var>rental project do not exceed the area fair market rent or exception fair market rents for <br/>
<a id="pl.66.12"></a><var>66.12</var>existing housing, if applicable, as established by the federal Department of Housing and <br/>
<a id="pl.66.13"></a><var>66.13</var>Urban Development. The rental rates of units in a residential rental project for which <br/>
<a id="pl.66.14"></a><var>66.14</var>project-based federal assistance payments are made are deemed to be within the rent <br/>
<a id="pl.66.15"></a><var>66.15</var>limitations of this clause.<br/>
<a id="pl.66.16"></a><var>66.16</var>    (b) The proceeds from residential rental bonds may be used for a project for which <br/>
<a id="pl.66.17"></a><var>66.17</var>project-based federal rental assistance payments are made only if:<br/>
<a id="pl.66.18"></a><var>66.18</var>    (1) the owner of the project enters into a binding agreement with the Minnesota <br/>
<a id="pl.66.19"></a><var>66.19</var>Housing Finance Agency under which the owner is obligated to extend any existing <br/>
<a id="pl.66.20"></a><var>66.20</var>low-income affordability restrictions and any contract or agreement for rental assistance <br/>
<a id="pl.66.21"></a><var>66.21</var>payments for the maximum term permitted, including any renewals thereof; and<br/>
<a id="pl.66.22"></a><var>66.22</var>    (2) the Minnesota Housing Finance Agency certifies that project reserves will be <br/>
<a id="pl.66.23"></a><var>66.23</var>maintained at closing of the bond issue and budgeted in future years at the lesser of:<br/>
<a id="pl.66.24"></a><var>66.24</var>    (i) the level described in Minnesota Rules, part 4900.0010, subpart 7, item A, <br/>
<a id="pl.66.25"></a><var>66.25</var>subitem (2), effective May 1, 1997; or<br/>
<a id="pl.66.26"></a><var>66.26</var>    (ii) the level of project reserves available prior to the bond issue, provided that <br/>
<a id="pl.66.27"></a><var>66.27</var>additional money is available to accomplish repairs and replacements needed at the time <br/>
<a id="pl.66.28"></a><var>66.28</var>of bond issue.<br/>
<a id="pl.66.29"></a><var>66.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.20.0"></a><a id="pl.66.30"></a><var>66.30</var>    Sec. 20. Laws 1995, chapter 264, article 5, section 46, subdivision 2, is amended to <br/>
<a id="pl.66.31"></a><var>66.31</var>read:<br/>
<a id="pl.66.32"></a><var>66.32</var>    Subd. 2.  <b>Limitation on use of tax increments.</b> (a) All revenues derived from tax <br/>
<a id="pl.66.33"></a><var>66.33</var>increments must be used in accordance with the housing replacement district plan. The <br/>
<a id="pl.66.34"></a><var>66.34</var>revenues must be used solely to pay the costs of site acquisition, relocation, demolition <br/>
<a id="pl.67.1"></a><var>67.1</var>of existing structures, site preparation, and pollution abatement on parcels identified in <br/>
<a id="pl.67.2"></a><var>67.2</var>the housing replacement district plan, as well as public improvements and administrative <br/>
<a id="pl.67.3"></a><var>67.3</var>costs directly related to those parcels.<br/>
<a id="pl.67.4"></a><var>67.4</var>    (b) Notwithstanding paragraph (a), the city of Minneapolis may use revenues <br/>
<a id="pl.67.5"></a><var>67.5</var>derived from tax increments from its housing replacement district for activities related <br/>
<a id="pl.67.6"></a><var>67.6</var>to parcels not identified in the housing replacement plan, but which would qualify for <br/>
<a id="pl.67.7"></a><var>67.7</var>inclusion under section 45, subdivision 1, paragraph (b), clauses (1) to (3).<br/>
<a id="pl.67.8"></a><var>67.8</var>    (c) Notwithstanding paragraph (a), or any other provisions of sections 44 to 47, the <br/>
<a id="pl.67.9"></a><var>67.9</var>Crystal Economic Development Authority may use revenues derived from tax increments <br/>
<a id="pl.67.10"></a><var>67.10</var>from its housing replacement districts numbers one and two as if those districts were <br/>
<a id="pl.67.11"></a><var>67.11</var>housing districts under Minnesota Statutes, section 469.174, subdivision 11, provided that <br/>
<a id="pl.67.12"></a><var>67.12</var>eligible activities may be located anywhere in the city without regard to the boundaries of <br/>
<a id="pl.67.13"></a><var>67.13</var>housing replacement district numbers one and two or any project area.<br/>
<a id="pl.67.14"></a><var>67.14</var><b>EFFECTIVE DATE.</b>This section applies to revenues from the housing replacement <br/>
<a id="pl.67.15"></a><var>67.15</var>districts, regardless of when they were received, and is effective the day following final <br/>
<a id="pl.67.16"></a><var>67.16</var>enactment and for the city of Minneapolis, upon compliance by the governing body of <br/>
<a id="pl.67.17"></a><var>67.17</var>the city of Minneapolis with Minnesota Statutes, section 645.021, subdivision 3, and, for <br/>
<a id="pl.67.18"></a><var>67.18</var>the city of Crystal, upon compliance by the governing body of the city of Crystal with <br/>
<a id="pl.67.19"></a><var>67.19</var>Minnesota Statutes, section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.5.21.0"></a><a id="pl.67.20"></a><var>67.20</var>    Sec. 21. Laws 2003, chapter 127, article 10, section 31, subdivision 1, is amended to <br/>
<a id="pl.67.21"></a><var>67.21</var>read:<br/>
<a id="pl.67.22"></a><var>67.22</var>    Subdivision 1.  <b>District extension.</b> (a) The governing body of the city of Hopkins <br/>
<a id="pl.67.23"></a><var>67.23</var>may elect to extend the duration of its redevelopment tax increment financing district <br/>
<a id="pl.67.24"></a><var>67.24</var>2-11 by up to four additional years. <br/>
<a id="pl.67.25"></a><var>67.25</var>    (b) Notwithstanding any law to the contrary, effective upon approval of this <br/>
<a id="pl.67.26"></a><var>67.26</var>subdivision, no increments may be spent on activities located outside of the area of the <br/>
<a id="pl.67.27"></a><var>67.27</var>district, other than:<br/>
<a id="pl.67.28"></a><var>67.28</var>    (1) to pay administrative expenses; or<br/>
<a id="pl.67.29"></a><var>67.29</var>    (2) to pay the costs of housing activities, provided that expenditures under this <br/>
<a id="pl.67.30"></a><var>67.30</var>clause may not exceed 20 percent of the total tax increments from the district. <br/>
<a id="pl.67.31"></a><var>67.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.22.0"></a><a id="pl.67.32"></a><var>67.32</var>    Sec. 22. Laws 2006, chapter 259, article 10, section 14, subdivision 1, is amended to <br/>
<a id="pl.67.33"></a><var>67.33</var>read:<br/>
<a id="pl.67.34"></a><var>67.34</var>    Subdivision 1.  <b>Definitions.</b> (a) "City" means the city of Minneapolis. <br/>
<a id="pl.68.1"></a><var>68.1</var>    (b) "Homeless assistance tax increment district" means a contiguous area of the <br/>
<a id="pl.68.2"></a><var>68.2</var>city that: <br/>
<a id="pl.68.3"></a><var>68.3</var>    (1) is no larger than six eight acres; <br/>
<a id="pl.68.4"></a><var>68.4</var>    (2) is located within the boundaries of a city municipal development district; and <br/>
<a id="pl.68.5"></a><var>68.5</var>    (3) contains at least two shelters for homeless persons that have been owned or <br/>
<a id="pl.68.6"></a><var>68.6</var>operated by nonprofit corporations that (i) are qualified charitable organizations under <br/>
<a id="pl.68.7"></a><var>68.7</var>section 501(c)(3) of the United States Internal Revenue Code, (ii) have operated such <br/>
<a id="pl.68.8"></a><var>68.8</var>homeless facilities within the district for at least five years, and (iii) have been recipients <br/>
<a id="pl.68.9"></a><var>68.9</var>of emergency services grants under Minnesota Statutes, section 
         <statute_ref>256E.36</statute_ref>. <br/>
<a id="pl.68.10"></a><var>68.10</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the city of <br/>
<a id="pl.68.11"></a><var>68.11</var>Minneapolis with Minnesota Statutes, section 645.021.<br/>
<br/>
<a id="bill.5.23.0"></a><a id="pl.68.12"></a><var>68.12</var>    Sec. 23. Laws 2008, chapter 154, article 9, section 23, is amended to read:<br/>
<a id="pl.68.13"></a><var>68.13</var>    Sec. 23. <b>CITY OF FRIDLEY; TAX INCREMENT FINANCING DISTRICT; </b><br/>
<a id="pl.68.14"></a><var>68.14</var><b>SPECIAL RULES.</b><br/>
<a id="pl.68.15"></a><var>68.15</var>    (a) If the city elects upon the adoption of a tax increment financing plan for a district, <br/>
<a id="pl.68.16"></a><var>68.16</var>the rules under this section apply to a redevelopment tax increment financing district <br/>
<a id="pl.68.17"></a><var>68.17</var>established by the city of Fridley or the housing and redevelopment authority of the city. <br/>
<a id="pl.68.18"></a><var>68.18</var>The redevelopment tax increment district includes city may include one or more of the <br/>
<a id="pl.68.19"></a><var>68.19</var>following parcels and adjacent railroad property and in the redevelopment tax increment <br/>
<a id="pl.68.20"></a><var>68.20</var>district, which shall be referred to as the Northstar Transit Station District: parcel <br/>
<a id="pl.68.21"></a><var>68.21</var>numbers 223024120010, 223024120009, 223024120017, 223024120016, 223024120018, <br/>
<a id="pl.68.22"></a><var>68.22</var>223024120012, 223024120011, 223024120005, 223024120004, 223024120003, <br/>
<a id="pl.68.23"></a><var>68.23</var>223024120013, 223024120008, 223024120007, 223024120006, 223024130005, <br/>
<a id="pl.68.24"></a><var>68.24</var>223024130010, 223024130011, 223024130003, 153024440039, 153024440037, <br/>
<a id="pl.68.25"></a><var>68.25</var>153024440041, 153024440042, 223024110013, 223024110016, 223024110017, <br/>
<a id="pl.68.26"></a><var>68.26</var>223024140008, 223024130002, 223024420004, 223024410002, 223024410003, <br/>
<a id="pl.68.27"></a><var>68.27</var>223024110008, 223024110007, 223024110019, 223024110018, 223024110003, <br/>
<a id="pl.68.28"></a><var>68.28</var>223024140003, 223024140009, 223024140002, 223024140010, and 223024410007. <br/>
<a id="pl.68.29"></a><var>68.29</var>    (b) The requirements for qualifying a redevelopment tax increment district under <br/>
<a id="pl.68.30"></a><var>68.30</var>Minnesota Statutes, section 
         <statute_ref>469.174, subdivision 10</statute_ref>, do not apply to the parcels located <br/>
<a id="pl.68.31"></a><var>68.31</var>within the Northstar Transit Station District, which are deemed eligible for inclusion <br/>
<a id="pl.68.32"></a><var>68.32</var>in a redevelopment tax increment district. <br/>
<a id="pl.68.33"></a><var>68.33</var>    (c) In addition to the costs permitted by Minnesota Statutes, section 
         <statute_ref>469.176, <br/>
<a id="pl.68.34"></a><var>68.34</var>subdivision 4j
         </statute_ref>, eligible expenditures within the Northstar Transit Station District include <br/>
<a id="pl.68.35"></a><var>68.35</var>those costs necessary to provide for the construction and land acquisition for a tunnel <br/>
<a id="pl.69.1"></a><var>69.1</var>under the Burlington Northern Santa Fe railroad tracks to allow access to the Northstar <br/>
<a id="pl.69.2"></a><var>69.2</var>Commuter Rail. <br/>
<a id="pl.69.3"></a><var>69.3</var>    (d) Notwithstanding the provisions of Minnesota Statutes, section 
         <statute_ref>469.1763, <br/>
<a id="pl.69.4"></a><var>69.4</var>subdivision 2
         </statute_ref>, the city of Fridley may expend increments generated from its tax increment <br/>
<a id="pl.69.5"></a><var>69.5</var>financing districts Nos. 11, 12, and 13 for costs permitted by paragraph (c) and Minnesota <br/>
<a id="pl.69.6"></a><var>69.6</var>Statutes, section 
         <statute_ref>469.176, subdivision 4j</statute_ref>, outside the boundaries of tax increment financing <br/>
<a id="pl.69.7"></a><var>69.7</var>districts Nos. 11, 12, and 13, but only within the Northstar Transit Station District. <br/>
<a id="pl.69.8"></a><var>69.8</var>    (e) The five-year rule under Minnesota Statutes, section 
         <statute_ref>469.1763, subdivision 3</statute_ref>, <br/>
<a id="pl.69.9"></a><var>69.9</var>does not apply to the Northstar Transit Station District or to tax increment financing <br/>
<a id="pl.69.10"></a><var>69.10</var>districts Nos. 11, 12, and 13. <br/>
<a id="pl.69.11"></a><var>69.11</var>    (f) The use of revenues for decertification under Minnesota Statutes, section <br/>
<statute_ref><a id="pl.69.12"></a><var>69.12</var>469.1763, subdivision 4
         </statute_ref>, does not apply to tax increment financing districts Nos. 11, <br/>
<a id="pl.69.13"></a><var>69.13</var>12, and 13. <br/>
<a id="pl.69.14"></a><var>69.14</var>    (g) The city may establish additional tax increment financing districts consisting <br/>
<a id="pl.69.15"></a><var>69.15</var>of parcels identified in paragraph (a), which it does not include in the Northstar Transit <br/>
<a id="pl.69.16"></a><var>69.16</var>District, under general law. The provisions of paragraph (c) apply to these districts and the <br/>
<a id="pl.69.17"></a><var>69.17</var>permitted pooling percentage for the districts under Minnesota Statutes, section 469.1763, <br/>
<a id="pl.69.18"></a><var>69.18</var>subdivision 2, is increased to 30 percent. The provisions of paragraphs (b), (d), (e), and <br/>
<a id="pl.69.19"></a><var>69.19</var>(f) do not apply to these districts. The authority to create districts under this authority <br/>
<a id="pl.69.20"></a><var>69.20</var>expires on December 30, 2017.<br/>
<a id="pl.69.21"></a><var>69.21</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing body <br/>
<a id="pl.69.22"></a><var>69.22</var>of the city of Fridley and upon compliance by the city with Minnesota Statutes, section <br/>
<a id="pl.69.23"></a><var>69.23</var><statute_ref>645.021, subdivision 3</statute_ref>.<br/>
<br/>
<a id="bill.5.24.0"></a><a id="pl.69.24"></a><var>69.24</var>    Sec. 24. Laws 2008, chapter 154, article 9, section 24, is amended to read:<br/>
<a id="pl.69.25"></a><var>69.25</var>    Sec. 24. <b>CITY OF NEW BRIGHTON; TAX INCREMENT FINANCING</b><b>; </b><br/>
<a id="pl.69.26"></a><var>69.26</var><b>EXPENDITURES OUTSIDE DISTRICT</b><b>.</b><br/>
<a id="pl.69.27"></a><var>69.27</var>    Subdivision 1. <b>Expenditures outside district.</b> Notwithstanding the provisions of <br/>
<a id="pl.69.28"></a><var>69.28</var>Minnesota Statutes, section sections 469.176, subdivision 4d, and 
<statute_ref>469.1763, subdivision <br/>
<a id="pl.69.29"></a><var>69.29</var>2
         </statute_ref>, or any other law to the contrary, the city of New Brighton may expend increments <br/>
<a id="pl.69.30"></a><var>69.30</var>generated from its tax increment financing district No. 26 to facilitate eligible activities <br/>
<a id="pl.69.31"></a><var>69.31</var>districts 9, 20, and 26. The increments may be used to pay eligible expenses as permitted <br/>
<a id="pl.69.32"></a><var>69.32</var>by Minnesota Statutes, section 
         <statute_ref>469.176, subdivision 4e 4j</statute_ref>, outside the boundaries of <br/>
<a id="pl.69.33"></a><var>69.33</var>tax increment financing district No. 26 districts 9, 20, and 26, but only within the area <br/>
<a id="pl.69.34"></a><var>69.34</var>described in Laws 1998, chapter 389, article 11, section 24, subdivision 1, and commonly <br/>
<a id="pl.70.1"></a><var>70.1</var>referred to as the Northwest Quadrant. Minnesota Statutes, section 
         <statute_ref>469.1763, subdivisions <br/>
<a id="pl.70.2"></a><var>70.2</var>3
         </statute_ref> and 4, do not apply to expenditures permitted by this section. <br/>
<a id="pl.70.3"></a><var>70.3</var>    Subd. 2. <b>District duration extension.</b> Notwithstanding the provisions of Minnesota <br/>
<a id="pl.70.4"></a><var>70.4</var>Statutes, section 469.176, subdivision 1b, or any other law to the contrary, the duration <br/>
<a id="pl.70.5"></a><var>70.5</var>limits that apply to redevelopment tax increment financing districts numbers 31 and 32 <br/>
<a id="pl.70.6"></a><var>70.6</var>established under Laws 1998, chapter 389, article 11, section 24, and hazardous substance <br/>
<a id="pl.70.7"></a><var>70.7</var>subdistricts numbers 31A and 32A established under Minnesota Statutes, sections 469.174 <br/>
<a id="pl.70.8"></a><var>70.8</var>to 469.1799, are extended by four years.<br/>
<a id="pl.70.9"></a><var>70.9</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing body <br/>
<a id="pl.70.10"></a><var>70.10</var>of the city of New Brighton and upon compliance by the city with Minnesota Statutes, <br/>
<a id="pl.70.11"></a><var>70.11</var>section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.5.25.0"></a><a id="pl.70.12"></a><var>70.12</var>    Sec. 25. <b>CITY OF AUSTIN; TAX INCREMENT FINANCING AUTHORITY.</b><br/>
<a id="pl.70.13"></a><var>70.13</var>    Notwithstanding the requirements of Minnesota Statutes, section 469.1763, <br/>
<a id="pl.70.14"></a><var>70.14</var>subdivision 3, that activities must be undertaken within a five-year period from the date of <br/>
<a id="pl.70.15"></a><var>70.15</var>certification of tax increment financing district and notwithstanding the provisions of any <br/>
<a id="pl.70.16"></a><var>70.16</var>other law, the governing body of the city of Austin may use tax increments from its Tax <br/>
<a id="pl.70.17"></a><var>70.17</var>Increment Financing District No. 9 to reimburse the city's housing and redevelopment <br/>
<a id="pl.70.18"></a><var>70.18</var>authority for money spent disposing of soils and debris in the tax increment financing <br/>
<a id="pl.70.19"></a><var>70.19</var>district, as required by the Minnesota Pollution Control Agency.<br/>
<a id="pl.70.20"></a><var>70.20</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.70.21"></a><var>70.21</var>body of the city of Austin with the requirements of Minnesota Statutes, section 645.021.<br/>
<br/>
<a id="bill.5.26.0"></a><a id="pl.70.22"></a><var>70.22</var>    Sec. 26. <b>BLOOMINGTON TAX INCREMENT FINANCING; FIVE-YEAR </b><br/>
<a id="pl.70.23"></a><var>70.23</var><b>RULE.</b><br/>
<a id="pl.70.24"></a><var>70.24</var>    The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that <br/>
<a id="pl.70.25"></a><var>70.25</var>activities must be undertaken within a five-year period from the date of certification of a <br/>
<a id="pl.70.26"></a><var>70.26</var>tax increment financing district, are increased to a ten-year period for the Port Authority <br/>
<a id="pl.70.27"></a><var>70.27</var>of the City of Bloomington's Tax Increment Financing District No. 1-I, Bloomington <br/>
<a id="pl.70.28"></a><var>70.28</var>Central Station.<br/>
<a id="pl.70.29"></a><var>70.29</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.70.30"></a><var>70.30</var>body of the Port Authority of the City of Bloomington with the requirements of Minnesota <br/>
<a id="pl.70.31"></a><var>70.31</var>Statutes, section 645.021.<br/>
<br/>
<a id="bill.5.27.0"></a><a id="pl.70.32"></a><var>70.32</var>    Sec. 27. <b>CITY OF BLOOMINGTON; TAX INCREMENT FINANCING </b><br/>
<a id="pl.70.33"></a><var>70.33</var><b>DISTRICT; PROJECT REQUIREMENTS.</b><br/>
<a id="pl.71.1"></a><var>71.1</var>    Subdivision 1. <b>Addition of parcels to Tax Increment Financing District No. 1-G.</b><br/>
<a id="pl.71.2"></a><var>71.2</var>    Notwithstanding the provisions of Minnesota Statutes, section 469.175, subdivision 4, <br/>
<a id="pl.71.3"></a><var>71.3</var>or any other law to the contrary, the governing bodies of the Port Authority of the city <br/>
<a id="pl.71.4"></a><var>71.4</var>of Bloomington and the city of Bloomington may elect to eliminate certain real property <br/>
<a id="pl.71.5"></a><var>71.5</var>from Tax Increment Financing District No. 1-C within Industrial Development District <br/>
<a id="pl.71.6"></a><var>71.6</var>No. 1 Airport South in the city of Bloomington, Minnesota, and expand the boundaries of <br/>
<a id="pl.71.7"></a><var>71.7</var>Tax Increment Financing District No. 1-G to include real property, which is described <br/>
<a id="pl.71.8"></a><var>71.8</var>as follows:<br/>
<a id="pl.71.9"></a><var>71.9</var>    (1) PARCEL C: That part of Lindau Lane lying westerly of 24th Avenue South and <br/>
<a id="pl.71.10"></a><var>71.10</var>lying easterly of State Highway No. 77; and <br/>
<a id="pl.71.11"></a><var>71.11</var>    (2) PARCEL D: Lot 1, Block 1, MALL OF AMERICA 3RD ADDITION, according <br/>
<a id="pl.71.12"></a><var>71.12</var>to the recorded plat thereof, Hennepin County, Minnesota, Except that part of said Lot 1 <br/>
<a id="pl.71.13"></a><var>71.13</var>described as commencing at the most easterly corner of Lot 2, said Block 1, said MALL <br/>
<a id="pl.71.14"></a><var>71.14</var>OF AMERICA 3RD ADDITION; thence on an assumed bearing of South 45 degrees 00 <br/>
<a id="pl.71.15"></a><var>71.15</var>minutes 00 seconds West, along the southeasterly line of said Lot 2, Block 1, MALL OF <br/>
<a id="pl.71.16"></a><var>71.16</var>AMERICA 3RD ADDITION, a distance of 18.58 feet to the point of beginning of the <br/>
<a id="pl.71.17"></a><var>71.17</var>land to be described: thence South 45 degrees 00 minutes 29 seconds East a distance of <br/>
<a id="pl.71.18"></a><var>71.18</var>30.69 feet; thence South 89 degrees 59 minutes 52 seconds East a distance of 303.62 feet; <br/>
<a id="pl.71.19"></a><var>71.19</var>thence South 0 degrees 00 minutes 08 seconds West a distance of 10.00 feet; thence North <br/>
<a id="pl.71.20"></a><var>71.20</var>89 degrees 57 minutes 47 seconds East a distance of 55.90 feet; thence North 0 degrees 06 <br/>
<a id="pl.71.21"></a><var>71.21</var>minutes 52 minutes West a distance of 10.01 feet; thence North 89 degrees 59 minutes 04 <br/>
<a id="pl.71.22"></a><var>71.22</var>seconds East a distance of 332.04 feet; thence North 44 degrees 57 minutes 59 seconds <br/>
<a id="pl.71.23"></a><var>71.23</var>East a distance 10.55 feet to the southwesterly line of Lot 3, Block 1, said MALL OF <br/>
<a id="pl.71.24"></a><var>71.24</var>AMERICA 3RD ADDITION; thence South 45 degrees 00 minutes 00 seconds East along <br/>
<a id="pl.71.25"></a><var>71.25</var>said southwesterly line of Lot 3, a distance of 244.08 feet to the most southerly southwest <br/>
<a id="pl.71.26"></a><var>71.26</var>corner of said Lot 3; thence on a bearing of East along the south line of said Lot 3 a <br/>
<a id="pl.71.27"></a><var>71.27</var>distance of 1.37 feet; thence South 0 degrees 10 minutes 07 seconds West a distance of <br/>
<a id="pl.71.28"></a><var>71.28</var>30.07 feet; thence North 89 degrees 58 minutes 07 seconds East a distance of 83.84 feet; <br/>
<a id="pl.71.29"></a><var>71.29</var>thence South 0 degrees 00 minutes 40 seconds West a distance of 540.08 feet; thence <br/>
<a id="pl.71.30"></a><var>71.30</var>North 89 degrees 58 minutes 39 seconds West a distance of 53.64 feet; thence South 0 <br/>
<a id="pl.71.31"></a><var>71.31</var>degrees 02 minutes 43 seconds West a distance of 29.71 feet to the north line of Lot 4, <br/>
<a id="pl.71.32"></a><var>71.32</var>Block 1, said MALL OF AMERICA 3RD ADDITION; thence on a bearing of West <br/>
<a id="pl.71.33"></a><var>71.33</var>along said north line of Lot 4 a distance of 1.13 feet to the most northerly northwest <br/>
<a id="pl.71.34"></a><var>71.34</var>corner of said Lot 4; thence South 45 degrees 00 minutes 00 seconds West along the <br/>
<a id="pl.71.35"></a><var>71.35</var>northwesterly line of said Lot 4 a distance of 293.65 feet; thence North 45 degrees 03 <br/>
<a id="pl.71.36"></a><var>71.36</var>minutes 26 seconds West a distance of 59.81 feet; thence North 89 degrees 59 minutes 24 <br/>
<a id="pl.72.1"></a><var>72.1</var>seconds West a distance 277.25 feet; thence North 0 degrees 02 minutes 42 seconds East a <br/>
<a id="pl.72.2"></a><var>72.2</var>distance of 10.21 feet; thence North 89 degrees 59 minutes 24 seconds West a distance of <br/>
<a id="pl.72.3"></a><var>72.3</var>55.93 feet; thence South 0 degrees 00 minutes 36 seconds West a distance of 10.17 feet; <br/>
<a id="pl.72.4"></a><var>72.4</var>thence South 89 degrees 59 minutes 32 seconds West a distance of 261.98 feet; thence <br/>
<a id="pl.72.5"></a><var>72.5</var>South 45 degrees 07 minutes 13 seconds West a distance of 70.69 feet to the northeasterly <br/>
<a id="pl.72.6"></a><var>72.6</var>line of Lot 5, Block 1, said MALL OF AMERICA 3RD ADDITION; thence North 45 <br/>
<a id="pl.72.7"></a><var>72.7</var>degrees 00 minutes 00 seconds West along said northeasterly line of Lot 5 a distance of <br/>
<a id="pl.72.8"></a><var>72.8</var>363.21 feet to the most northerly northeast corner of said Lot 5; thence on a bearing of <br/>
<a id="pl.72.9"></a><var>72.9</var>West along the north line of said Lot 5 a distance of 1.74 feet; thence North 0 degrees 05 <br/>
<a id="pl.72.10"></a><var>72.10</var>minutes 14 seconds East a distance of 30.30 feet; thence South 89 degrees 56 minutes 58 <br/>
<a id="pl.72.11"></a><var>72.11</var>seconds West a distance of 81.56 feet; thence North 0 degrees 00 minutes 24 seconds East <br/>
<a id="pl.72.12"></a><var>72.12</var>a distance of 497.92 feet; thence South 89 degrees 58 minutes 55 seconds East a distance <br/>
<a id="pl.72.13"></a><var>72.13</var>of 123.79 feet; thence North 0 degrees 01 minutes 54 seconds East a distance of 30.06 feet <br/>
<a id="pl.72.14"></a><var>72.14</var>to the south line of said Lot 2, Block 1, MALL OF AMERICA 3RD ADDITION; thence <br/>
<a id="pl.72.15"></a><var>72.15</var>on a bearing of East along said south line of Lot 2, Block 1, MALL OF AMERICA 3RD <br/>
<a id="pl.72.16"></a><var>72.16</var>ADDITION; thence on a bearing of East along said south line of Lot 2, Block 1, MALL <br/>
<a id="pl.72.17"></a><var>72.17</var>OF AMERICA 3RD ADDITION, a distance of 1.22 feet to the most southerly southeast <br/>
<a id="pl.72.18"></a><var>72.18</var>corner of said Lot 2, Block 1, MALL OF AMERICA 3RD ADDITION; thence North 45 <br/>
<a id="pl.72.19"></a><var>72.19</var>degrees 00 minutes 00 seconds East along said southeasterly line of Lot 2, Block 1, MALL <br/>
<a id="pl.72.20"></a><var>72.20</var>OF AMERICA 3RD ADDITION, a distance of 264.05 feet to the point of beginning.<br/>
<a id="pl.72.21"></a><var>72.21</var>    Subd. 2. <b>Original tax capacity of Tax Increment Financing District No. 1-G.</b><br/>
<a id="pl.72.22"></a><var>72.22</var>    Upon inclusion of the real property described above in the Tax Increment District No. 1-G, <br/>
<a id="pl.72.23"></a><var>72.23</var>the Hennepin County auditor must increase the original tax capacity of Tax Increment <br/>
<a id="pl.72.24"></a><var>72.24</var>District No. 1-G by $208,000.<br/>
<a id="pl.72.25"></a><var>72.25</var>    Subd. 3. <b>Use of increments.</b> Notwithstanding Laws 1996, chapter 464, article <br/>
<a id="pl.72.26"></a><var>72.26</var>1, section 8, subdivision 3, paragraph (d), clauses (1) and (2), the tax increments, <br/>
<a id="pl.72.27"></a><var>72.27</var>assessments, and other revenues derived from any portion of Tax Increment Financing <br/>
<a id="pl.72.28"></a><var>72.28</var>District No. 1-G may be used:<br/>
<a id="pl.72.29"></a><var>72.29</var>    (1) to pay debt service on revenue bonds issued under section 29;<br/>
<a id="pl.72.30"></a><var>72.30</var>    (2) to reimburse or otherwise pay the developer for public improvements because <br/>
<a id="pl.72.31"></a><var>72.31</var>of counted value resulting from investment in property in Tax Increment Financing <br/>
<a id="pl.72.32"></a><var>72.32</var>District No. 1-G under section 9.2(05) of the restated contract for purchase and private <br/>
<a id="pl.72.33"></a><var>72.33</var>redevelopment of land, by and among the city of Bloomington, the Port Authority of the <br/>
<a id="pl.72.34"></a><var>72.34</var>city of Bloomington, and the Mall of America Company, dated May 31, 1988; and<br/>
<a id="pl.72.35"></a><var>72.35</var>    (3) to pay the principal, premium, and interest on bonds, notes, or other obligations <br/>
<a id="pl.72.36"></a><var>72.36</var>issued by the city of Bloomington or the Port Authority of the city of Bloomington to <br/>
<a id="pl.73.1"></a><var>73.1</var>finance capital and related costs of public improvements in Tax Increment Financing <br/>
<a id="pl.73.2"></a><var>73.2</var>District No. 1-G. In sections 27 to 30, "public improvements" are limited to public <br/>
<a id="pl.73.3"></a><var>73.3</var>improvements for which tax increments may be expended under the tax increment <br/>
<a id="pl.73.4"></a><var>73.4</var>financing plan for Tax Increment Financing District No. 1-G as amended November <br/>
<a id="pl.73.5"></a><var>73.5</var>15, 2001.<br/>
<a id="pl.73.6"></a><var>73.6</var>    Subd. 4. <b>Public hearing on district modification.</b> When the governing bodies of <br/>
<a id="pl.73.7"></a><var>73.7</var>the port authority or the city elect to exercise the authority provided in subdivision 1 to <br/>
<a id="pl.73.8"></a><var>73.8</var>modify the districts, they must conduct a public hearing after published notice on the <br/>
<a id="pl.73.9"></a><var>73.9</var>issue, with the meeting beginning between 6:00 p.m. and 7:00 p.m. on a weeknight.<br/>
<a id="pl.73.10"></a><var>73.10</var>    Subd. 5. <b>Construction of Mall of America phase II.</b> (a) The governing bodies of <br/>
<a id="pl.73.11"></a><var>73.11</var>the city of Bloomington and the Bloomington Port Authority, as a condition of providing <br/>
<a id="pl.73.12"></a><var>73.12</var>tax increments or other financial assistance for parking facilities and other public <br/>
<a id="pl.73.13"></a><var>73.13</var>improvements, must enter into an agreement with the developers of the project that ensures <br/>
<a id="pl.73.14"></a><var>73.14</var>that the facility complies with the sustainable building guidelines in Minnesota Statutes, <br/>
<a id="pl.73.15"></a><var>73.15</var>section 16B.325, and that it must be, to the greatest extent practicable, constructed of <br/>
<a id="pl.73.16"></a><var>73.16</var>American-made steel.<br/>
<a id="pl.73.17"></a><var>73.17</var>    (b) The agreement must prohibit any additional draw from an aquifer for the purpose <br/>
<a id="pl.73.18"></a><var>73.18</var>of a man-made lake, waterpark, or similar entertainment venue. <br/>
<a id="pl.73.19"></a><var>73.19</var>    (c) The agreement must also prohibit inclusion of an auditorium, theater, or similar <br/>
<a id="pl.73.20"></a><var>73.20</var>live entertainment venue. This paragraph does not prohibit inclusion of multi-screen <br/>
<a id="pl.73.21"></a><var>73.21</var>movie theaters, nightclubs, restaurants, or museums.<br/>
<a id="pl.73.22"></a><var>73.22</var>    Subd. 6. <b>Living wage.</b> Any agreement to provide financial assistance to phase II of <br/>
<a id="pl.73.23"></a><var>73.23</var>the Mall of America project must include a provision that requires payment of wages that <br/>
<a id="pl.73.24"></a><var>73.24</var>meet the requirements of Minnesota Statutes, section 469.310, subdivision 11, paragraph <br/>
<a id="pl.73.25"></a><var>73.25</var>(g), to persons employed on a full-time basis at the facility. This subdivision does not <br/>
<a id="pl.73.26"></a><var>73.26</var>apply to seasonal or temporary employees or to internships or similar positions intended <br/>
<a id="pl.73.27"></a><var>73.27</var>to provide career experience or training. This subdivision does not apply to nonprofit <br/>
<a id="pl.73.28"></a><var>73.28</var>organizations, educational institutions, or businesses that employ fewer than 50 employees.<br/>
<a id="pl.73.29"></a><var>73.29</var>    Subd. 7. <b>Affordable access.</b> To the extent determined by the governing body of <br/>
<a id="pl.73.30"></a><var>73.30</var>the city or the port authority, any agreement to provide financial assistance to phase II <br/>
<a id="pl.73.31"></a><var>73.31</var>of the Mall of America project must provide for affordable access to the amusement <br/>
<a id="pl.73.32"></a><var>73.32</var>areas of the facility.<br/>
<a id="pl.73.33"></a><var>73.33</var>    Subd. 8. <b>Labor peace.</b> As a condition to exercising the authority provided in <br/>
<a id="pl.73.34"></a><var>73.34</var>subdivision 1, the governing bodies of the city of Bloomington and the Bloomington Port <br/>
<a id="pl.73.35"></a><var>73.35</var>Authority shall require the developers of phase II of the Mall of America project to enter <br/>
<a id="pl.74.1"></a><var>74.1</var>into a labor peace agreement with the labor organization which is most actively engaged in <br/>
<a id="pl.74.2"></a><var>74.2</var>representing and attempting to represent hotel workers in Hennepin and Ramsey Counties. <br/>
<a id="pl.74.3"></a><var>74.3</var>The labor peace agreement must be an enforceable agreement and must prohibit the labor <br/>
<a id="pl.74.4"></a><var>74.4</var>organization and its members from engaging in any boycott or other activity advising <br/>
<a id="pl.74.5"></a><var>74.5</var>customers not to patronize any hotel that is part of Phase II for at least the first five years <br/>
<a id="pl.74.6"></a><var>74.6</var>of the hotel's operation, and must cover all operations at the hotel, other than construction, <br/>
<a id="pl.74.7"></a><var>74.7</var>alteration, or repair of the premises separately owned and operated, which are conducted <br/>
<a id="pl.74.8"></a><var>74.8</var>by lessees or tenants or under management agreements, except retail operations, including <br/>
<a id="pl.74.9"></a><var>74.9</var>gift, jewelry, and clothing shops that have annual gross revenues of less than $250,000.<br/>
<a id="pl.74.10"></a><var>74.10</var>    Subd. 9. <b>Certificate of compliance; affirmative action.</b> As a condition of <br/>
<a id="pl.74.11"></a><var>74.11</var>exercising the authority provided in this section and sections 28 and 29, the governing <br/>
<a id="pl.74.12"></a><var>74.12</var>bodies of the city of Bloomington and the Bloomington Port Authority must enter into an <br/>
<a id="pl.74.13"></a><var>74.13</var>agreement with the developers of the project that requires each contractor or subcontractor <br/>
<a id="pl.74.14"></a><var>74.14</var>in connection with construction of the project to comply with the requirements of <br/>
<a id="pl.74.15"></a><var>74.15</var>Minnesota Statutes, section 363A.36, as if the contract were with a state agency or <br/>
<a id="pl.74.16"></a><var>74.16</var>department.<br/>
<a id="pl.74.17"></a><var>74.17</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.74.18"></a><var>74.18</var>the city of Bloomington and its chief clerical officer timely complete their compliance <br/>
<a id="pl.74.19"></a><var>74.19</var>with Minnesota Statutes, section 645.021, subdivision 3, with respect to this section and <br/>
<a id="pl.74.20"></a><var>74.20</var>section 30.<br/>
<br/>
<a id="bill.5.28.0"></a><a id="pl.74.21"></a><var>74.21</var>    Sec. 28. <b>CITY OF BLOOMINGTON; LOCAL TAXING AUTHORITY.</b><br/>
<a id="pl.74.22"></a><var>74.22</var>    Subdivision 1. <b>Additional taxes authorized; use of proceeds.</b> Notwithstanding <br/>
<a id="pl.74.23"></a><var>74.23</var>Minnesota Statutes, section 477A.016, or any other law, ordinance, or charter provision <br/>
<a id="pl.74.24"></a><var>74.24</var>to the contrary, the governing body of the city of Bloomington may impose any or all of <br/>
<a id="pl.74.25"></a><var>74.25</var>the taxes described in this section. The proceeds of any taxes imposed under this section <br/>
<a id="pl.74.26"></a><var>74.26</var>or section 27, less refunds and the cost of collection, must be used to provide financing <br/>
<a id="pl.74.27"></a><var>74.27</var>for parking facilities or other public improvements for the Mall of America phase II. The <br/>
<a id="pl.74.28"></a><var>74.28</var>Port Authority of the city of Bloomington may, but is not required to, issue or cause <br/>
<a id="pl.74.29"></a><var>74.29</var>the sale of bonds, a developer's note, or other obligations to finance the improvements. <br/>
<a id="pl.74.30"></a><var>74.30</var>If a governmental entity other than the city of Bloomington issues the obligations used <br/>
<a id="pl.74.31"></a><var>74.31</var>to finance the parking facilities and other public improvements, the city may transfer the <br/>
<a id="pl.74.32"></a><var>74.32</var>funds available under this section and section 27 for financing the project to the entity <br/>
<a id="pl.74.33"></a><var>74.33</var>that issued the bonds.<br/>
<a id="pl.75.1"></a><var>75.1</var>    Subd. 2. <b>Sales tax.</b> The city of Bloomington may charter a special taxing authority, <br/>
<a id="pl.75.2"></a><var>75.2</var>which is a separate political subdivision. The geographic area of the special taxing <br/>
<a id="pl.75.3"></a><var>75.3</var>authority consists of Tax Increment Financing Districts No. 1-C and No. 1-G in the <br/>
<a id="pl.75.4"></a><var>75.4</var>city. The city council is the governing body of the special taxing authority. The special <br/>
<a id="pl.75.5"></a><var>75.5</var>taxing authority may impose, by resolution, a sales tax of not less than one-half of one <br/>
<a id="pl.75.6"></a><var>75.6</var>percent and not more than one percent within its boundaries. The provisions of Minnesota <br/>
<a id="pl.75.7"></a><var>75.7</var>Statutes, section 297A.99, except for subdivisions 2 and 3, govern the imposition, <br/>
<a id="pl.75.8"></a><var>75.8</var>administration, collection, and enforcement of the tax authorized in this subdivision.<br/>
<a id="pl.75.9"></a><var>75.9</var>    Subd. 3. <b>Lodging tax.</b> The city may impose, by ordinance, a tax of up to one <br/>
<a id="pl.75.10"></a><var>75.10</var>percent on the gross receipts subject to the lodging tax under Minnesota Statutes, section <br/>
<a id="pl.75.11"></a><var>75.11</var>469.190. This tax is in addition to any tax imposed under Minnesota Statutes, section <br/>
<a id="pl.75.12"></a><var>75.12</var>469.190, and may be imposed within a tax district defined by the city council, which must <br/>
<a id="pl.75.13"></a><var>75.13</var>include Tax Increment Districts No. 1-C and No. 1-G in the city of Bloomington and may <br/>
<a id="pl.75.14"></a><var>75.14</var>include additional areas of the city, which are not required to be contiguous.<br/>
<a id="pl.75.15"></a><var>75.15</var>    Subd. 4. <b>Admissions and recreation tax.</b> The city may impose, by ordinance, a tax <br/>
<a id="pl.75.16"></a><var>75.16</var>of up to one percent on admissions to entertainment and recreational facilities and rental of <br/>
<a id="pl.75.17"></a><var>75.17</var>recreation equipment at sites within a tax district defined by the city council, which must <br/>
<a id="pl.75.18"></a><var>75.18</var>include Tax Increment Financing Districts No. 1-C and No. 1-G in the city of Bloomington <br/>
<a id="pl.75.19"></a><var>75.19</var>and may include additional areas of the city, which are not required to be contiguous.<br/>
<a id="pl.75.20"></a><var>75.20</var>    Subd. 5. <b>Food and beverage tax.</b> The city may impose, by ordinance, an additional <br/>
<a id="pl.75.21"></a><var>75.21</var>sales tax of up to three percent on sales of food and beverages primarily for consumption <br/>
<a id="pl.75.22"></a><var>75.22</var>on or off the premises by restaurants and places of refreshment as defined by resolution <br/>
<a id="pl.75.23"></a><var>75.23</var>of the city within Tax Increment Financing Districts No. 1-C and No. 1-G in the city of <br/>
<a id="pl.75.24"></a><var>75.24</var>Bloomington.<br/>
<a id="pl.75.25"></a><var>75.25</var>    Subd. 6. <b>Lodging taxes.</b> Notwithstanding any law or ordinance, the city may <br/>
<a id="pl.75.26"></a><var>75.26</var>use the unobligated proceeds of any existing city lodging tax attributable to imposition <br/>
<a id="pl.75.27"></a><var>75.27</var>of the tax on lodging facilities constructed after the date of enactment of this act within <br/>
<a id="pl.75.28"></a><var>75.28</var>Tax Increment Financing District No. 1-G. In this subdivision, "unobligated proceeds <br/>
<a id="pl.75.29"></a><var>75.29</var>of any existing city lodging tax" means the proceeds of a lodging tax imposed by the <br/>
<a id="pl.75.30"></a><var>75.30</var>city of Bloomington prior to May 1, 2008, to the extent the proceeds of the tax are not <br/>
<a id="pl.75.31"></a><var>75.31</var>contractually pledged to any other specific uses. Lodging tax proceeds derived from <br/>
<a id="pl.75.32"></a><var>75.32</var>lodging facilities constructed after the date of enactment of this act within Tax Increment <br/>
<a id="pl.75.33"></a><var>75.33</var>Financing District No. 1-G that have been required by law to be expended for promotion <br/>
<a id="pl.75.34"></a><var>75.34</var>of the metropolitan sports area or for marketing and promotion of the city by the city <br/>
<a id="pl.76.1"></a><var>76.1</var>convention bureau may be expended for the purposes described in subdivision 1, <br/>
<a id="pl.76.2"></a><var>76.2</var>notwithstanding the dedications in those laws.<br/>
<a id="pl.76.3"></a><var>76.3</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.76.4"></a><var>76.4</var>governing body of the city of Bloomington with Minnesota Statutes, section 645.021, <br/>
<a id="pl.76.5"></a><var>76.5</var>subdivision 3, with respect to this section and section 30.<br/>
<br/>
<a id="bill.5.29.0"></a><a id="pl.76.6"></a><var>76.6</var>    Sec. 29. <b>MALL OF AMERICA PHASE II PARKING FACILITY REVENUE </b><br/>
<a id="pl.76.7"></a><var>76.7</var><b>BONDS.</b><br/>
<a id="pl.76.8"></a><var>76.8</var>    Subdivision 1. <b>Issuing authority.</b> (a) The city of Bloomington may contract with <br/>
<a id="pl.76.9"></a><var>76.9</var>any of the following authorities to issue and sell revenue bonds for the purposes and <br/>
<a id="pl.76.10"></a><var>76.10</var>in the amounts specified in subdivision 2:<br/>
<a id="pl.76.11"></a><var>76.11</var>    (1) the commissioner of finance, exercising the authority granted under this section <br/>
<a id="pl.76.12"></a><var>76.12</var>and Minnesota Statutes, sections 16A.672 to 16A.675;<br/>
<a id="pl.76.13"></a><var>76.13</var>    (2) the Agricultural and Economic Development Board, exercising the powers <br/>
<a id="pl.76.14"></a><var>76.14</var>granted under this section and Minnesota Statutes, chapter 41A; or<br/>
<a id="pl.76.15"></a><var>76.15</var>    (3) the Minnesota Public Facilities Authority, exercising the powers granted under <br/>
<a id="pl.76.16"></a><var>76.16</var>this section and Minnesota Statutes, chapter 446A.<br/>
<a id="pl.76.17"></a><var>76.17</var>    (b) The authority granted in this section is in addition to the statutes in paragraph <br/>
<a id="pl.76.18"></a><var>76.18</var>(a) and notwithstanding any contrary provisions in them.<br/>
<a id="pl.76.19"></a><var>76.19</var>    (c) The contract must include as a party the developer of phase II of the Mall of <br/>
<a id="pl.76.20"></a><var>76.20</var>America and may include as a party any other entity deemed appropriate by the city of <br/>
<a id="pl.76.21"></a><var>76.21</var>Bloomington, the issuing authority, and the developer.<br/>
<a id="pl.76.22"></a><var>76.22</var>    Subd. 2. <b>Purposes and amounts.</b> (a) The revenue bonds may be issued in a single <br/>
<a id="pl.76.23"></a><var>76.23</var>or multiple issues and sold for the following purposes:<br/>
<a id="pl.76.24"></a><var>76.24</var>    (1) to pay the costs to design, construct, furnish, and equip parking facilities and <br/>
<a id="pl.76.25"></a><var>76.25</var>related public improvements for phase II of the Mall of America;<br/>
<a id="pl.76.26"></a><var>76.26</var>    (2) to pay the costs of issuance, debt service, and bond insurance or other credit <br/>
<a id="pl.76.27"></a><var>76.27</var>enhancements, and to fund reserves; and<br/>
<a id="pl.76.28"></a><var>76.28</var>    (3) to refund bonds issued under this section.<br/>
<a id="pl.76.29"></a><var>76.29</var>    (b) The amount of bonds that may be issued for the purposes of paragraph (a), clause <br/>
<a id="pl.76.30"></a><var>76.30</var>(1), may not exceed per issue the estimated cost from time to time of the parking facilities <br/>
<a id="pl.76.31"></a><var>76.31</var>and other public improvements, including soft costs; the amount of bonds that may be <br/>
<a id="pl.76.32"></a><var>76.32</var>issued for the purposes of paragraph (a), clauses (2) and (3), is not limited.<br/>
<a id="pl.76.33"></a><var>76.33</var>    Subd. 3. <b>Revenue sources.</b> The debt service on the bonds is payable only from the <br/>
<a id="pl.76.34"></a><var>76.34</var>following sources:<br/>
<a id="pl.77.1"></a><var>77.1</var>    (1) the tax revenues referred to in section 28; and<br/>
<a id="pl.77.2"></a><var>77.2</var>    (2) other nonstate revenues pledged to the payment of the bonds.<br/>
<a id="pl.77.3"></a><var>77.3</var>    Subd. 4. <b>Sale and issuance; proceeds.</b> (a) The issuing authority may sell and issue <br/>
<a id="pl.77.4"></a><var>77.4</var>the bonds on the terms and conditions the issuing authority determines to be in the best <br/>
<a id="pl.77.5"></a><var>77.5</var>interests of the state after reviewing an agreement between the city of Bloomington and <br/>
<a id="pl.77.6"></a><var>77.6</var>the developer of phase II of the Mall of America setting out the terms upon which the city <br/>
<a id="pl.77.7"></a><var>77.7</var>of Bloomington will use the proceeds of the bond sales. The bonds may be sold at public <br/>
<a id="pl.77.8"></a><var>77.8</var>or private sale at a price or prices the issuing authority finds appropriate. The issuing <br/>
<a id="pl.77.9"></a><var>77.9</var>authority may enter any agreements or pledges the issuing authority determines necessary <br/>
<a id="pl.77.10"></a><var>77.10</var>or useful to sell the bonds that are not inconsistent with this section. <br/>
<a id="pl.77.11"></a><var>77.11</var>    (b) The city may enter into a preliminary agreement with the issuing authority under <br/>
<a id="pl.77.12"></a><var>77.12</var>which the city agrees, if the revenue bonds are not issued, to pay or cause to be paid the <br/>
<a id="pl.77.13"></a><var>77.13</var>costs and expenses incurred by the issuing authority relating to the proposed issuance of <br/>
<a id="pl.77.14"></a><var>77.14</var>the revenue bonds.<br/>
<a id="pl.77.15"></a><var>77.15</var>    (c) The proceeds of the bonds issued under this section must be credited to a special <br/>
<a id="pl.77.16"></a><var>77.16</var>Mall of America revenue bond proceeds account with the issuing authority or a trustee <br/>
<a id="pl.77.17"></a><var>77.17</var>and are appropriated to the issuing authority for payment to the city of Bloomington <br/>
<a id="pl.77.18"></a><var>77.18</var>for the purposes specified in subdivision 2.<br/>
<a id="pl.77.19"></a><var>77.19</var>    Subd. 5. <b>Security.</b> The issuing authority may irrevocably pledge and appropriate <br/>
<a id="pl.77.20"></a><var>77.20</var>for payment of the revenue bonds and premium, if any, and interest thereon the revenues <br/>
<a id="pl.77.21"></a><var>77.21</var>it receives from the city of Bloomington derived from tax increments and taxes the city <br/>
<a id="pl.77.22"></a><var>77.22</var>is authorized to impose under section 28. By a resolution of the issuing authority or <br/>
<a id="pl.77.23"></a><var>77.23</var>by an indenture of trust executed under its authority, the issuing authority may make <br/>
<a id="pl.77.24"></a><var>77.24</var>any and all covenants with bondholders, or with a trustee for the bondholders, that are <br/>
<a id="pl.77.25"></a><var>77.25</var>determined by the issuing authority to be necessary and proper to ensure the marketability <br/>
<a id="pl.77.26"></a><var>77.26</var>of the revenue bonds and the segregation and application of the revenues pledged to the <br/>
<a id="pl.77.27"></a><var>77.27</var>payment of the revenue bonds. Any tax revenues transferred to the issuing authority <br/>
<a id="pl.77.28"></a><var>77.28</var>that are not required by the terms of the bonds or other obligations issued under this <br/>
<a id="pl.77.29"></a><var>77.29</var>section, or related documents, to be applied to the payment of the principal, premium, or <br/>
<a id="pl.77.30"></a><var>77.30</var>interest on the bonds or other obligations, the funding of reserves, or the payment of fees, <br/>
<a id="pl.77.31"></a><var>77.31</var>costs, or reimbursements, must be transferred to the city of Bloomington. The revenue <br/>
<a id="pl.77.32"></a><var>77.32</var>bonds are not general obligations of the issuing authority but are payable solely from the <br/>
<a id="pl.77.33"></a><var>77.33</var>revenues received by the city of Bloomington and the proceeds thereof that are pledged <br/>
<a id="pl.77.34"></a><var>77.34</var>to the payment of the revenue bonds.  The revenue bonds must not be taken into account <br/>
<a id="pl.77.35"></a><var>77.35</var>for purposes of any limitation on the principal amount of bonds of the issuing authority <br/>
<a id="pl.77.36"></a><var>77.36</var>under Minnesota Statutes, section 446A.12, subdivision 1, or other law. The proceeds <br/>
<a id="pl.78.1"></a><var>78.1</var>of the revenue bonds to be applied to the costs of parking facilities and other public <br/>
<a id="pl.78.2"></a><var>78.2</var>improvements may be made available by the issuing authority to the city of Bloomington <br/>
<a id="pl.78.3"></a><var>78.3</var>for those purposes by a loan agreement or other agreement between the issuing authority <br/>
<a id="pl.78.4"></a><var>78.4</var>and the city. The city may, by resolution or in a loan agreement or other instrument with <br/>
<a id="pl.78.5"></a><var>78.5</var>the issuing authority, pledge to the payment of the revenue bonds issued by the authority <br/>
<a id="pl.78.6"></a><var>78.6</var>all or a portion of the revenues collected from the imposition of the taxes the city is <br/>
<a id="pl.78.7"></a><var>78.7</var>authorized to impose under section 28 and make any or all covenants determined by the <br/>
<a id="pl.78.8"></a><var>78.8</var>city and the issuing authority to be necessary and proper for the security or marketability <br/>
<a id="pl.78.9"></a><var>78.9</var>of the revenue bonds to be issued by the issuing authority and the payment of the costs and <br/>
<a id="pl.78.10"></a><var>78.10</var>expenses incurred by the issuing authority relating to the revenue bonds. <br/>
<a id="pl.78.11"></a><var>78.11</var>    Subd. 6. <b>Refunding bonds.</b> The issuing authority may issue bonds to refund <br/>
<a id="pl.78.12"></a><var>78.12</var>outstanding bonds issued under subdivision 1, including the payment of any redemption <br/>
<a id="pl.78.13"></a><var>78.13</var>premiums on the bonds and any interest accrued or to accrue to the first redemption date <br/>
<a id="pl.78.14"></a><var>78.14</var>after delivery of the refunding bonds. The proceeds of the refunding bonds may, in the <br/>
<a id="pl.78.15"></a><var>78.15</var>discretion of the issuing authority, be applied to the purchases or payment at maturity of the <br/>
<a id="pl.78.16"></a><var>78.16</var>bonds to be refunded, or the redemption of the outstanding bonds on the first redemption <br/>
<a id="pl.78.17"></a><var>78.17</var>date after delivery of the refunding bonds and may, until so used, be placed in escrow to <br/>
<a id="pl.78.18"></a><var>78.18</var>be applied to the purchase, retirement, or redemption. Refunding bonds issued under this <br/>
<a id="pl.78.19"></a><var>78.19</var>subdivision must be issued and secured in the manner provided by the issuing authority.<br/>
<a id="pl.78.20"></a><var>78.20</var>    Subd. 7. <b>Not a general or moral obligation.</b> Bonds issued under this section <br/>
<a id="pl.78.21"></a><var>78.21</var>are not general or moral obligations of the issuing authority, and the full faith, credit, <br/>
<a id="pl.78.22"></a><var>78.22</var>and taxing powers of the state are not pledged for their payment. The bonds may not be <br/>
<a id="pl.78.23"></a><var>78.23</var>paid directly, in whole or in part, from a tax of statewide application on any class of <br/>
<a id="pl.78.24"></a><var>78.24</var>property, income, transaction, or privilege. Payment of the bonds is limited to the revenues <br/>
<a id="pl.78.25"></a><var>78.25</var>explicitly authorized to be pledged under this section. The state neither makes nor has <br/>
<a id="pl.78.26"></a><var>78.26</var>a moral obligation to pay the bonds if the pledged revenues and other legal security for <br/>
<a id="pl.78.27"></a><var>78.27</var>them is insufficient.<br/>
<a id="pl.78.28"></a><var>78.28</var>    Subd. 8. <b>Trustee.</b> The issuing authority may contract with and appoint a trustee <br/>
<a id="pl.78.29"></a><var>78.29</var>for bond holders. The trustee has the powers and authority vested in it by the issuing <br/>
<a id="pl.78.30"></a><var>78.30</var>authority under the bond and trust indentures.<br/>
<a id="pl.78.31"></a><var>78.31</var>    Subd. 9. <b>Pledges.</b> Any pledge made of money, property, or other revenues to the <br/>
<a id="pl.78.32"></a><var>78.32</var>bonds by the issuing authority is valid and binding from the time the pledge is made. The <br/>
<a id="pl.78.33"></a><var>78.33</var>money or property pledged and later received by the issuing authority is immediately <br/>
<a id="pl.78.34"></a><var>78.34</var>subject to the lien of the pledge without any physical delivery of the property or money or <br/>
<a id="pl.78.35"></a><var>78.35</var>further act, and the lien of any pledge is valid and binding as against all parties having <br/>
<a id="pl.79.1"></a><var>79.1</var>claims of any kind in tort, contract, or otherwise against the issuing authority, whether or <br/>
<a id="pl.79.2"></a><var>79.2</var>not those parties have notice of the lien or pledge. The resolution, indenture, agreement, <br/>
<a id="pl.79.3"></a><var>79.3</var>or other instrument by which a pledge is created need not be recorded. Any tax revenues <br/>
<a id="pl.79.4"></a><var>79.4</var>pledged to the issuing authority that are not required by the terms of the bonds or other <br/>
<a id="pl.79.5"></a><var>79.5</var>obligations issued under this section, or related documents, to be applied to the payment <br/>
<a id="pl.79.6"></a><var>79.6</var>of the principal, premium, or interest on the bonds or other obligations, the funding of <br/>
<a id="pl.79.7"></a><var>79.7</var>reserves, or the payment of fees, costs, or reimbursements, must be released from the <br/>
<a id="pl.79.8"></a><var>79.8</var>pledge to the bonds and other obligations in accordance with the terms of the bonds, <br/>
<a id="pl.79.9"></a><var>79.9</var>other obligations, and related documents.<br/>
<a id="pl.79.10"></a><var>79.10</var>    Subd. 10. <b>Bonds; purchase and cancellation.</b> The issuing authority, subject to <br/>
<a id="pl.79.11"></a><var>79.11</var>agreements with bondholders that may then exist, may, out of any money available for <br/>
<a id="pl.79.12"></a><var>79.12</var>the purpose, purchase bonds of the issuing authority at a price not exceeding (1) if the <br/>
<a id="pl.79.13"></a><var>79.13</var>bonds are then redeemable, the redemption price then applicable plus accrued interest, <br/>
<a id="pl.79.14"></a><var>79.14</var>or (2) if the bonds are not redeemable, the redemption price applicable on the first date <br/>
<a id="pl.79.15"></a><var>79.15</var>after the purchase upon which the bonds become subject to redemption plus accrued <br/>
<a id="pl.79.16"></a><var>79.16</var>interest to that date.<br/>
<a id="pl.79.17"></a><var>79.17</var>    Subd. 11. <b>State pledge against impairment of contracts.</b> The state pledges and <br/>
<a id="pl.79.18"></a><var>79.18</var>agrees with the holders of any bonds that the state will not limit or alter the rights vested in <br/>
<a id="pl.79.19"></a><var>79.19</var>the issuing authority to fulfill the terms of any agreements made with the bondholders, or <br/>
<a id="pl.79.20"></a><var>79.20</var>in any way impair the rights and remedies of the holders until the bonds, together with <br/>
<a id="pl.79.21"></a><var>79.21</var>interest on them, with interest on any unpaid installments of interest, and all costs and <br/>
<a id="pl.79.22"></a><var>79.22</var>expenses in connection with any action or proceeding by or on behalf of the bondholders, <br/>
<a id="pl.79.23"></a><var>79.23</var>are fully met and discharged. The issuing authority may include this pledge and agreement <br/>
<a id="pl.79.24"></a><var>79.24</var>of the state in any agreement with the holders of bonds issued under this section.<br/>
<a id="pl.79.25"></a><var>79.25</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.79.26"></a><var>79.26</var>the city of Bloomington and its chief clerical officer timely complete their compliance <br/>
<a id="pl.79.27"></a><var>79.27</var>with Minnesota Statutes, section 645.021, subdivision 3, with respect to this section and <br/>
<a id="pl.79.28"></a><var>79.28</var>section 30.<br/>
<br/>
<a id="bill.5.30.0"></a><a id="pl.79.29"></a><var>79.29</var>    Sec. 30. <b>STATE REVIEW; BUT-FOR DETERMINATION; DEVELOPMENT </b><br/>
<a id="pl.79.30"></a><var>79.30</var><b>AGREEMENT.</b><br/>
<a id="pl.79.31"></a><var>79.31</var>    Subdivision 1. <b>Required conditions.</b> All of the conditions required under this <br/>
<a id="pl.79.32"></a><var>79.32</var>section must be satisfied before the city and authority may contract with an issuing <br/>
<a id="pl.79.33"></a><var>79.33</var>authority as provided in section 29. This section only applies if the city and authority <br/>
<a id="pl.79.34"></a><var>79.34</var>contract with an issuing authority under section 29.<br/>
<a id="pl.80.1"></a><var>80.1</var>    Subd. 2. <b>Definitions.</b> (a) For purposes of this section, the following terms have <br/>
<a id="pl.80.2"></a><var>80.2</var>the meanings given.<br/>
<a id="pl.80.3"></a><var>80.3</var>    (b) "Authority" means the port authority of the city of Bloomington.<br/>
<a id="pl.80.4"></a><var>80.4</var>    (c) "City" means the city of Bloomington.<br/>
<a id="pl.80.5"></a><var>80.5</var>    (d) "Commissioner" means the commissioner of finance.<br/>
<a id="pl.80.6"></a><var>80.6</var>    Subd. 3. <b>Required disclosure.</b> The authority, city, and developer shall provide to <br/>
<a id="pl.80.7"></a><var>80.7</var>the commissioner on a confidential basis all of the materials and information necessary <br/>
<a id="pl.80.8"></a><var>80.8</var>to carry out the commissioner's responsibilities under this section. The developer shall <br/>
<a id="pl.80.9"></a><var>80.9</var>provide information or access to its financial records and books as requested by the <br/>
<a id="pl.80.10"></a><var>80.10</var>commissioner on a confidential basis.<br/>
<a id="pl.80.11"></a><var>80.11</var>    Subd. 4. <b>But-for determination.</b> The commissioner shall determine, in writing, <br/>
<a id="pl.80.12"></a><var>80.12</var>whether the assistance to be funded by the provisions of sections 27 to 29 is necessary to <br/>
<a id="pl.80.13"></a><var>80.13</var>make the project financially feasible. The determination must be based on full disclosure <br/>
<a id="pl.80.14"></a><var>80.14</var>by the developer of all costs and other information on the project and a determination <br/>
<a id="pl.80.15"></a><var>80.15</var>by the commissioner that the amount of assistance to be provided is required to permit <br/>
<a id="pl.80.16"></a><var>80.16</var>a competitive market return on the investment. The commissioner shall consider an <br/>
<a id="pl.80.17"></a><var>80.17</var>executed letter of intent to issue financing for the project from a licensed financial <br/>
<a id="pl.80.18"></a><var>80.18</var>institution or institutions that requires the funding described in this section as a condition <br/>
<a id="pl.80.19"></a><var>80.19</var>of placing the financing to be evidence of the financial necessity of such assistance and <br/>
<a id="pl.80.20"></a><var>80.20</var>must subsequently affirm in writing whether assistance is necessary to make the project <br/>
<a id="pl.80.21"></a><var>80.21</var>financially feasible.<br/>
<a id="pl.80.22"></a><var>80.22</var>    Subd. 5. <b>Development agreement required.</b> The city, authority, developer, and <br/>
<a id="pl.80.23"></a><var>80.23</var>commissioner must enter into a development agreement that includes, at least, the <br/>
<a id="pl.80.24"></a><var>80.24</var>following provisions:<br/>
<a id="pl.80.25"></a><var>80.25</var>    (1) the minimum private improvements that must be undertaken to qualify for <br/>
<a id="pl.80.26"></a><var>80.26</var>assistance;<br/>
<a id="pl.80.27"></a><var>80.27</var>    (2) the developer's contribution to the parking facility or facilities;<br/>
<a id="pl.80.28"></a><var>80.28</var>    (3) the dates for commencement and completion of the facility;<br/>
<a id="pl.80.29"></a><var>80.29</var>    (4) a requirement that the assistance will be used solely for construction of the <br/>
<a id="pl.80.30"></a><var>80.30</var>parking facilities and other public improvements and to reimburse the costs of the state in <br/>
<a id="pl.80.31"></a><var>80.31</var>evaluation of the development and negotiation of the development agreement;<br/>
<a id="pl.80.32"></a><var>80.32</var>    (5) the authority is the owner of the parking facilities;<br/>
<a id="pl.80.33"></a><var>80.33</var>    (6) construction of the parking facilities and all private improvement construction <br/>
<a id="pl.80.34"></a><var>80.34</var>are subject to payment of prevailing wage as defined in Minnesota Statutes, section <br/>
<a id="pl.81.1"></a><var>81.1</var>177.42, subdivision 7, and construction of the parking facilities is subject to competitive <br/>
<a id="pl.81.2"></a><var>81.2</var>bidding requirements, unless constructed under Minnesota Statutes, section 469.071;<br/>
<a id="pl.81.3"></a><var>81.3</var>    (7) all costs for operation, maintenance, capital improvement and repair of the <br/>
<a id="pl.81.4"></a><var>81.4</var>parking facilities must be paid by the developer; and<br/>
<a id="pl.81.5"></a><var>81.5</var>    (8) the developer shall be allowed to utilize bond funds based on progress work in <br/>
<a id="pl.81.6"></a><var>81.6</var>place for the construction of the parking facilities as design and construction progresses <br/>
<a id="pl.81.7"></a><var>81.7</var>based on costs incurred and certified by the developer, port authority, and independent <br/>
<a id="pl.81.8"></a><var>81.8</var>inspecting architect or engineer on a monthly basis subject to the provision of a completion <br/>
<a id="pl.81.9"></a><var>81.9</var>guarantee by the developer or performance bond assuring the completion of the minimum <br/>
<a id="pl.81.10"></a><var>81.10</var>parking and public improvements. The developer may assign its right to reimbursement <br/>
<a id="pl.81.11"></a><var>81.11</var>under the development agreement as collateral for any loan to fund the construction.<br/>
<a id="pl.81.12"></a><var>81.12</var>    Subd. 6. <b>Recovery of state costs.</b> The developer shall advance all of the costs of <br/>
<a id="pl.81.13"></a><var>81.13</var>the commissioner to evaluate the need for the assistance and negotiate the development <br/>
<a id="pl.81.14"></a><var>81.14</var>agreement as a condition of commencement of the negotiation. Notwithstanding the <br/>
<a id="pl.81.15"></a><var>81.15</var>provisions of Minnesota Statutes, section 16C.095, the commissioner may contract with <br/>
<a id="pl.81.16"></a><var>81.16</var>outside entities for any assistance needed in developing this development agreement.<br/>
<a id="pl.81.17"></a><var>81.17</var>    Subd. 7. <b>LCPFP Review.</b> The commissioner shall submit the completed <br/>
<a id="pl.81.18"></a><var>81.18</var>development agreement to the Legislative Commission on Planning and Fiscal Policy for <br/>
<a id="pl.81.19"></a><var>81.19</var>approval. The development agreement is not effective until approved by the commission, <br/>
<a id="pl.81.20"></a><var>81.20</var>provided that, if the commission has not approved or rejected the development agreement <br/>
<a id="pl.81.21"></a><var>81.21</var>within 120 days of its submission by the commissioner, it will be deemed to have been <br/>
<a id="pl.81.22"></a><var>81.22</var>approved.<br/>
<a id="pl.81.23"></a><var>81.23</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.81.24"></a><var>81.24</var>the city of Bloomington and its chief clerical officer timely complete their compliance <br/>
<a id="pl.81.25"></a><var>81.25</var>with Minnesota Statutes, section 645.021, subdivision 3, with respect to this section and <br/>
<a id="pl.81.26"></a><var>81.26</var>section 29.<br/>
<br/>
<a id="bill.5.31.0"></a><a id="pl.81.27"></a><var>81.27</var>    Sec. 31. <b>CITY OF DULUTH; EXTENSION OF TIME FOR ACTIVITY IN TAX </b><br/>
<a id="pl.81.28"></a><var>81.28</var><b>INCREMENT FINANCING DISTRICTS.</b><br/>
<a id="pl.81.29"></a><var>81.29</var>    Subdivision 1. <b>District No. 20.</b> The requirements of Minnesota Statutes, section <br/>
<a id="pl.81.30"></a><var>81.30</var>469.1763, subdivision 3, that activities must be undertaken within a five-year period from <br/>
<a id="pl.81.31"></a><var>81.31</var>the date of certification of a tax increment financing district, must be considered to be met <br/>
<a id="pl.81.32"></a><var>81.32</var>for Duluth Economic Development Authority Tax Increment Financing District No. 20 if <br/>
<a id="pl.81.33"></a><var>81.33</var>the activities are undertaken within ten years from the date of certification of the district.<br/>
<a id="pl.82.1"></a><var>82.1</var>    Subd. 2. <b>District No. 21.</b> The requirements of Minnesota Statutes, section <br/>
<a id="pl.82.2"></a><var>82.2</var>469.1763, subdivision 3, that activities must be undertaken within a five-year period from <br/>
<a id="pl.82.3"></a><var>82.3</var>the date of certification of a tax increment financing district, must be considered to be met <br/>
<a id="pl.82.4"></a><var>82.4</var>for Duluth Economic Development Authority Tax Increment Financing District No. 21 if <br/>
<a id="pl.82.5"></a><var>82.5</var>the activities are undertaken within ten years from the date of certification of the district.<br/>
<a id="pl.82.6"></a><var>82.6</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.82.7"></a><var>82.7</var>body of the city of Duluth with the requirements of Minnesota Statutes, section 645.021, <br/>
<a id="pl.82.8"></a><var>82.8</var>subdivision 3.<br/>
<br/>
<a id="bill.5.32.0"></a><a id="pl.82.9"></a><var>82.9</var>    Sec. 32. <b>CITY OF WELLS; DISPOSITION OF TAX INCREMENT FINANCING </b><br/>
<a id="pl.82.10"></a><var>82.10</var><b>REVENUES.</b><br/>
<a id="pl.82.11"></a><var>82.11</var>    Notwithstanding the provisions of Minnesota Statutes, section 469.174, subdivision <br/>
<a id="pl.82.12"></a><var>82.12</var>25, the following are deemed not to be "increments," "tax increments," or "revenues <br/>
<a id="pl.82.13"></a><var>82.13</var>derived from tax increment" for purposes of the redevelopment district in the city of <br/>
<a id="pl.82.14"></a><var>82.14</var>Wells, identified as Downtown Development Program 1, for amounts received after <br/>
<a id="pl.82.15"></a><var>82.15</var>decertification of the district:<br/>
<a id="pl.82.16"></a><var>82.16</var>    (1) rents paid by private tenants for use of a building acquired in whole or in part <br/>
<a id="pl.82.17"></a><var>82.17</var>with tax increments; and<br/>
<a id="pl.82.18"></a><var>82.18</var>    (2) proceeds from the sale of the building.<br/>
<a id="pl.82.19"></a><var>82.19</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.82.20"></a><var>82.20</var>body of the city of Wells with the requirements of Minnesota Statutes, section 645.021, <br/>
<a id="pl.82.21"></a><var>82.21</var>subdivision 3.<br/>
<br/>
<a id="bill.5.33.0"></a><a id="pl.82.22"></a><var>82.22</var>    Sec. 33. <b>MULTICOUNTY HOUSING AND REDEVELOPMENT AUTHORITY </b><br/>
<a id="pl.82.23"></a><var>82.23</var><b>LEVY AUTHORITY.</b><br/>
<a id="pl.82.24"></a><var>82.24</var>    Notwithstanding Minnesota Statutes, section 469.033, subdivision 6, or any other <br/>
<a id="pl.82.25"></a><var>82.25</var>law to the contrary, the governing body of the Northwest Minnesota Multicounty Housing <br/>
<a id="pl.82.26"></a><var>82.26</var>and Redevelopment Authority, upon approval by a two-thirds majority of all its members, <br/>
<a id="pl.82.27"></a><var>82.27</var>may levy an amount not to exceed 25 percent of the total levy permitted under Minnesota <br/>
<a id="pl.82.28"></a><var>82.28</var>Statutes, section 469.033, subdivision 6, without approval of that levy by the governing <br/>
<a id="pl.82.29"></a><var>82.29</var>body of the city or county within which the authority operates. The authority to levy the <br/>
<a id="pl.82.30"></a><var>82.30</var>remainder of the total levy permitted under that provision remains subject to approval <br/>
<a id="pl.82.31"></a><var>82.31</var>by the governing body of the city or county. For purposes of the levy authorized under <br/>
<a id="pl.82.32"></a><var>82.32</var>this section only, the Northwest Minnesota Multicounty Housing and Redevelopment <br/>
<a id="pl.82.33"></a><var>82.33</var>Authority is considered a special taxing jurisdiction as provided in Minnesota Statutes, <br/>
<a id="pl.82.34"></a><var>82.34</var>section 275.066.<br/>
<a id="pl.83.1"></a><var>83.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in 2008, payable in <br/>
<a id="pl.83.2"></a><var>83.2</var>2009, and is repealed effective for taxes levied in 2013, payable in 2014, and thereafter.<br/>
<br/>
<a id="bill.5.34.0"></a><a id="pl.83.3"></a><var>83.3</var>    Sec. 34. <b>CITY OF OAKDALE; ORIGINAL TAX CAPACITY. </b><br/>
<a id="pl.83.4"></a><var>83.4</var>    (a) The provisions of this section apply to redevelopment tax increment financing <br/>
<a id="pl.83.5"></a><var>83.5</var>districts created by the Housing and Redevelopment Authority in and for the city of <br/>
<a id="pl.83.6"></a><var>83.6</var>Oakdale in the areas comprised of the parcels with the following parcel identification <br/>
<a id="pl.83.7"></a><var>83.7</var>numbers: (1) 3102921320053; 3102921320054; 3102921320055; 3102921320056; <br/>
<a id="pl.83.8"></a><var>83.8</var>3102921320057; 3102921320058; 3102921320062; 3102921320063; 3102921320059; <br/>
<a id="pl.83.9"></a><var>83.9</var>3102921320060; and 3102921320061; and (2) 3102921330005 and 3102921330004.<br/>
<a id="pl.83.10"></a><var>83.10</var>    (b) For a district subject to this section, the Housing and Redevelopment Authority <br/>
<a id="pl.83.11"></a><var>83.11</var>may, when requesting certification of the original tax capacity of the district under <br/>
<a id="pl.83.12"></a><var>83.12</var>Minnesota Statutes, section 469.177, elect to have the original tax capacity of the district <br/>
<a id="pl.83.13"></a><var>83.13</var>be certified as the tax capacity of the land.<br/>
<a id="pl.83.14"></a><var>83.14</var>    (c) The authority to request certification of a district under this section expires on <br/>
<a id="pl.83.15"></a><var>83.15</var>July 1, 2013.<br/>
<a id="pl.83.16"></a><var>83.16</var><b>EFFECTIVE DATE; LOCAL APPROVAL.</b>This section is effective upon <br/>
<a id="pl.83.17"></a><var>83.17</var>approval by the governing body of the city of Oakdale and compliance with Minnesota <br/>
<a id="pl.83.18"></a><var>83.18</var>Statutes, section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.5.35.0"></a><a id="pl.83.19"></a><var>83.19</var>    Sec. 35. <b>DAKOTA COUNTY COMMUNITY DEVELOPMENT AUTHORITY; </b><br/>
<a id="pl.83.20"></a><var>83.20</var><b>PLAN MODIFICATION.</b><br/>
<a id="pl.83.21"></a><var>83.21</var>    Notwithstanding Minnesota Statutes, section 469.175, subdivision 4, the Dakota <br/>
<a id="pl.83.22"></a><var>83.22</var>County Community Development Authority may designate additional property to be <br/>
<a id="pl.83.23"></a><var>83.23</var>acquired by the authority for a tax increment financing project without meeting the <br/>
<a id="pl.83.24"></a><var>83.24</var>requirements for approval of an original tax increment financing plan if the property:<br/>
<a id="pl.83.25"></a><var>83.25</var>    (1) consists of one or more parcels under common ownership;<br/>
<a id="pl.83.26"></a><var>83.26</var>    (2) is acquired from a willing seller;<br/>
<a id="pl.83.27"></a><var>83.27</var>    (3) is acquired for purposes of development as a housing project as defined in <br/>
<a id="pl.83.28"></a><var>83.28</var>Minnesota Statutes, section 469.174, subdivision 11; and<br/>
<a id="pl.83.29"></a><var>83.29</var>    (4) the acquisition is approved by the governing body of the authority after holding <br/>
<a id="pl.83.30"></a><var>83.30</var>a public hearing thereon after published notice in a newspaper of general circulation in <br/>
<a id="pl.83.31"></a><var>83.31</var>the municipality in which the property is located at least once not less than ten days nor <br/>
<a id="pl.83.32"></a><var>83.32</var>more than 30 days prior to the date of the hearing. The published notice must include a <br/>
<a id="pl.83.33"></a><var>83.33</var>map depicting the property and the general area of the municipality within which the <br/>
<a id="pl.84.1"></a><var>84.1</var>property is located. The hearing may be held before or at the time of authority approval <br/>
<a id="pl.84.2"></a><var>84.2</var>of the acquisition.<br/>
<a id="pl.84.3"></a><var>84.3</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.84.4"></a><var>84.4</var>body of the Dakota County Community Development Authority with the requirements of <br/>
<a id="pl.84.5"></a><var>84.5</var>Minnesota Statutes, section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.5.36.0"></a><a id="pl.84.6"></a><var>84.6</var>    Sec. 36. <b>CITY OF ST. PAUL; TAX INCREMENT FINANCING DISTRICT.</b><br/>
<a id="pl.84.7"></a><var>84.7</var>    Subdivision 1. <b>Authorization.</b> Notwithstanding the provisions of any other <br/>
<a id="pl.84.8"></a><var>84.8</var>law, upon approval of the governing body of the city of St. Paul, the Housing and <br/>
<a id="pl.84.9"></a><var>84.9</var>Redevelopment Authority of the city of St. Paul may establish a redevelopment tax <br/>
<a id="pl.84.10"></a><var>84.10</var>increment financing district comprised of the properties included in the existing downtown <br/>
<a id="pl.84.11"></a><var>84.11</var>and Seventh Place tax increment district (County #82). Notwithstanding Minnesota <br/>
<a id="pl.84.12"></a><var>84.12</var>Statutes, section 469.177, subdivision 6, if certification of the district is requested by July <br/>
<a id="pl.84.13"></a><var>84.13</var>31, 2008, the certification will be recognized by the county auditor in determining local <br/>
<a id="pl.84.14"></a><var>84.14</var>tax rates for taxes payable in 2009 and subsequent years. The district created under this <br/>
<a id="pl.84.15"></a><var>84.15</var>section terminates December 31, 2023. The city may create the district under this section <br/>
<a id="pl.84.16"></a><var>84.16</var>only if it enters into an agreement with Ramsey County to pay the county annually out of <br/>
<a id="pl.84.17"></a><var>84.17</var>the increment from this district an amount equal to the tax that would have been payable <br/>
<a id="pl.84.18"></a><var>84.18</var>to the county on the captured tax capacity of the district had the district not been created.<br/>
<a id="pl.84.19"></a><var>84.19</var>    Subd. 2. <b>Special rules.</b> The requirements for qualifying a redevelopment district <br/>
<a id="pl.84.20"></a><var>84.20</var>under Minnesota Statutes, section 469.174, subdivision 10, do not apply to parcels located <br/>
<a id="pl.84.21"></a><var>84.21</var>within the district. Minnesota Statutes, section 469.176, subdivisions 4j and 4l, do not <br/>
<a id="pl.84.22"></a><var>84.22</var>apply to the district. The original tax capacity of the district is $1,801,052.<br/>
<a id="pl.84.23"></a><var>84.23</var>    Subd. 3. <b>Authorized expenditures.</b> Tax increment from the district may be <br/>
<a id="pl.84.24"></a><var>84.24</var>expended only to pay principal and interest on bond obligations issued by the St. Paul <br/>
<a id="pl.84.25"></a><var>84.25</var>Housing and Redevelopment Authority in 1996 for the convention center, including <br/>
<a id="pl.84.26"></a><var>84.26</var>payment of principal and interest on any bonds issued to repay the bonds or loans. All <br/>
<a id="pl.84.27"></a><var>84.27</var>such expenditures are deemed to be activities within the district under Minnesota Statutes, <br/>
<a id="pl.84.28"></a><var>84.28</var>section 469.1763, subdivisions 2, 3, and 4.<br/>
<a id="pl.84.29"></a><var>84.29</var>    Subd. 4. <b>Adjusted net tax capacity.</b> The captured tax capacity of the district must <br/>
<a id="pl.84.30"></a><var>84.30</var>be included in the adjusted net tax capacity of the city, county, and school district for the <br/>
<a id="pl.84.31"></a><var>84.31</var>purposes of determining local government aid, education aid, and county program aid. <br/>
<a id="pl.84.32"></a><var>84.32</var>The county auditor shall report to the commissioner of revenue the amount of the captured <br/>
<a id="pl.84.33"></a><var>84.33</var>tax capacity for the district at the time the assessment abstracts are filed.<br/>
<a id="pl.85.1"></a><var>85.1</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance with Minnesota <br/>
<a id="pl.85.2"></a><var>85.2</var>Statutes, section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.5.37.0"></a><a id="pl.85.3"></a><var>85.3</var>    Sec. 37. <b>CITY OF MINNEAPOLIS; TAX INCREMENT FINANCING </b><br/>
<a id="pl.85.4"></a><var>85.4</var><b>DISTRICT.</b><br/>
<a id="pl.85.5"></a><var>85.5</var>    Subdivision 1. <b>Authorization.</b> Notwithstanding the provisions of any other law, <br/>
<a id="pl.85.6"></a><var>85.6</var>the city of Minneapolis may establish a redevelopment tax increment financing district <br/>
<a id="pl.85.7"></a><var>85.7</var>comprised of the properties included in the existing tax increment districts in the city <br/>
<a id="pl.85.8"></a><var>85.8</var>that are exempt under Minnesota Statutes, section 469.179, subdivision 1, and were not <br/>
<a id="pl.85.9"></a><var>85.9</var>decertified before July 1, 2008. The district created under this section may be certified <br/>
<a id="pl.85.10"></a><var>85.10</var>after January 1, 2010, and terminates no later than December 31, 2020. The city may <br/>
<a id="pl.85.11"></a><var>85.11</var>create the district under this section only if it enters into an agreement with Hennepin <br/>
<a id="pl.85.12"></a><var>85.12</var>County to pay the county annually out of the increment from this district an amount equal <br/>
<a id="pl.85.13"></a><var>85.13</var>to the tax that would have been payable to the county on the captured tax capacity of the <br/>
<a id="pl.85.14"></a><var>85.14</var>district had the district not been created.<br/>
<a id="pl.85.15"></a><var>85.15</var>    Subd. 2. <b>Special rules.</b> The requirements for qualifying a redevelopment district <br/>
<a id="pl.85.16"></a><var>85.16</var>under Minnesota Statutes, section 469.174, subdivision 10, do not apply to parcels located <br/>
<a id="pl.85.17"></a><var>85.17</var>within the district. Minnesota Statutes, section 469.176, subdivisions 4j and 4l, do not <br/>
<a id="pl.85.18"></a><var>85.18</var>apply to the district. The original tax capacity of the district is $2,731,854.<br/>
<a id="pl.85.19"></a><var>85.19</var>    Subd. 3. <b>Authorized expenditures.</b> Tax increment from the district may be <br/>
<a id="pl.85.20"></a><var>85.20</var>expended only to pay principal and interest on bond obligations issued by the city of <br/>
<a id="pl.85.21"></a><var>85.21</var>Minneapolis or the Minneapolis Community Development Agency for Target Center, <br/>
<a id="pl.85.22"></a><var>85.22</var>including payment of principal and interest on any bonds issued to repay bonds or loans <br/>
<a id="pl.85.23"></a><var>85.23</var>and for neighborhood revitalization purposes. All such expenditures are deemed to be <br/>
<a id="pl.85.24"></a><var>85.24</var>activities within the district under Minnesota Statutes, section 469.1763, subdivisions 2, <br/>
<a id="pl.85.25"></a><var>85.25</var>3, and 4.<br/>
<a id="pl.85.26"></a><var>85.26</var>    Subd. 4. <b>Adjusted net tax capacity.</b> The captured tax capacity of the district must <br/>
<a id="pl.85.27"></a><var>85.27</var>be included in the adjusted net tax capacity of the city, county, and school district for the <br/>
<a id="pl.85.28"></a><var>85.28</var>purposes of determining local government aid, education aid, and county program aid. <br/>
<a id="pl.85.29"></a><var>85.29</var>The county auditor shall report to the commissioner of revenue the amount of the captured <br/>
<a id="pl.85.30"></a><var>85.30</var>tax capacity for the district at the time the assessment abstracts are filed.<br/>
<a id="pl.85.31"></a><var>85.31</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance with Minnesota <br/>
<a id="pl.85.32"></a><var>85.32</var>Statutes, section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.5.38.0"></a><a id="pl.85.33"></a><var>85.33</var>    Sec. 38. <b>TEMPORARY INCREASE IN ANNUAL VOLUME CAP.</b><br/>
<a id="pl.86.1"></a><var>86.1</var>    Subdivision 1. <b>Applicability.</b> This section applies if federal tax law is amended <br/>
<a id="pl.86.2"></a><var>86.2</var>after April 28, 2008, to provide a temporary increase in the annual volume cap for private <br/>
<a id="pl.86.3"></a><var>86.3</var>activity bonds for housing purposes for calendar year 2008 or 2009, and applies only to the <br/>
<a id="pl.86.4"></a><var>86.4</var>amount of the annual volume cap attributable to the temporary increase for those purposes.<br/>
<a id="pl.86.5"></a><var>86.5</var>    Subd. 2. <b>Definitions.</b> As used in this section, "annual volume cap," "bonding <br/>
<a id="pl.86.6"></a><var>86.6</var>authority," "commissioner," "federal tax law," and "housing pool" have the meanings given <br/>
<a id="pl.86.7"></a><var>86.7</var>in Minnesota Statutes, section 474A.02. As used in this section, "agency" and "city" have <br/>
<a id="pl.86.8"></a><var>86.8</var>the meanings given in Minnesota Statutes, section 474A.061, subdivision 2a, paragraph <br/>
<a id="pl.86.9"></a><var>86.9</var>(c). As used in this section, "carryforward" means the ability to issue obligations in a year <br/>
<a id="pl.86.10"></a><var>86.10</var>subsequent to the year in which an allocation of bonding authority was obtained under this <br/>
<a id="pl.86.11"></a><var>86.11</var>section as provided in section 146(f) of federal tax law.<br/>
<a id="pl.86.12"></a><var>86.12</var>    Subd. 3. <b>Allocations.</b> (a) The commissioner shall determine the aggregate dollar <br/>
<a id="pl.86.13"></a><var>86.13</var>amount attributable to the temporary increase in the annual volume cap for housing <br/>
<a id="pl.86.14"></a><var>86.14</var>purposes. Of this amount, the commissioner shall make the following allocations for 2008:<br/>
<a id="pl.86.15"></a><var>86.15</var>    (1) 43 percent to the housing pool, of which 31 percent of the allocation is reserved <br/>
<a id="pl.86.16"></a><var>86.16</var>for single-family housing programs for a period ending on the earlier of:<br/>
<a id="pl.86.17"></a><var>86.17</var>    (i) October 31, 2008, or October 31, 2009, if the increase is made available for <br/>
<a id="pl.86.18"></a><var>86.18</var>calendar year 2009; or<br/>
<a id="pl.86.19"></a><var>86.19</var>    (ii) 180 days after the allocation by the commissioner of the temporary increase <br/>
<a id="pl.86.20"></a><var>86.20</var>in the volume cap;<br/>
<a id="pl.86.21"></a><var>86.21</var>    (2) 30 percent to the agency;<br/>
<a id="pl.86.22"></a><var>86.22</var>    (3) 12 percent to the city of Minneapolis;<br/>
<a id="pl.86.23"></a><var>86.23</var>    (4) nine percent to the city of St. Paul; and<br/>
<a id="pl.86.24"></a><var>86.24</var>    (5) six percent to the Dakota County Community Development Agency for the <br/>
<a id="pl.86.25"></a><var>86.25</var>county of Dakota and all political subdivisions located within the county.<br/>
<a id="pl.86.26"></a><var>86.26</var>    (b) Allocations provided under this subdivision must be used for mortgage bonds or <br/>
<a id="pl.86.27"></a><var>86.27</var>residential rental project bonds.<br/>
<a id="pl.86.28"></a><var>86.28</var>    (c) Data on the home purchase price amount, mortgage amount, income, household <br/>
<a id="pl.86.29"></a><var>86.29</var>size, and race of the households served with the proceeds of mortgage bonds and <br/>
<a id="pl.86.30"></a><var>86.30</var>mortgage credit certificates using an allocation under this section in a calendar year <br/>
<a id="pl.86.31"></a><var>86.31</var>must be submitted by each issuer to the agency by December 31 of the following year. <br/>
<a id="pl.86.32"></a><var>86.32</var>Compliance by the agency with the provisions of Minnesota Statutes, section 462A.073, <br/>
<a id="pl.86.33"></a><var>86.33</var>subdivision 5, shall be deemed to be in compliance by the agency with the reporting <br/>
<a id="pl.86.34"></a><var>86.34</var>requirements of this paragraph.<br/>
<a id="pl.86.35"></a><var>86.35</var>    (d) Any amount allocated under paragraph (a), clause (2), (3), (4), or (5), may be <br/>
<a id="pl.86.36"></a><var>86.36</var>transferred as provided in Minnesota Statutes, section 474A.04, subdivision 6.<br/>
<a id="pl.87.1"></a><var>87.1</var>    Subd. 4. <b>Housing pool.</b> Any amounts allocated to the housing pool under <br/>
<a id="pl.87.2"></a><var>87.2</var>subdivision 3 that are not reserved for single-family housing programs must be allocated <br/>
<a id="pl.87.3"></a><var>87.3</var>according to Minnesota Statutes, section 474A.061, subdivisions 2a and 4, subject to <br/>
<a id="pl.87.4"></a><var>87.4</var>the following conditions:<br/>
<a id="pl.87.5"></a><var>87.5</var>    (1) other amounts in the housing pool, if any, must be allocated from the housing <br/>
<a id="pl.87.6"></a><var>87.6</var>pool before any allocation is made from amounts attributable to the temporary increase in <br/>
<a id="pl.87.7"></a><var>87.7</var>annual volume cap;<br/>
<a id="pl.87.8"></a><var>87.8</var>    (2) any amount of the temporary increase in the annual volume cap remaining in <br/>
<a id="pl.87.9"></a><var>87.9</var>the housing pool on the last Monday of July 2008, or on the last Monday of July 2009, if <br/>
<a id="pl.87.10"></a><var>87.10</var>the temporary increase in annual volume cap is made available for calendar year 2009, or <br/>
<a id="pl.87.11"></a><var>87.11</var>that is allocated to the housing pool under subdivision 3, thereafter shall remain in the <br/>
<a id="pl.87.12"></a><var>87.12</var>housing pool for allocation until the last Monday in November 2008, or the last Monday <br/>
<a id="pl.87.13"></a><var>87.13</var>in November 2009, if the temporary increase in the annual volume is made available <br/>
<a id="pl.87.14"></a><var>87.14</var>for calendar year 2009;<br/>
<a id="pl.87.15"></a><var>87.15</var>    (3) any allocation of the temporary increase in the annual volume cap that is <br/>
<a id="pl.87.16"></a><var>87.16</var>canceled under Minnesota Statutes, section 474A.061, subdivision 4, shall be returned to <br/>
<a id="pl.87.17"></a><var>87.17</var>the housing pool for reallocation, unless the cancellation occurs after the last Monday in <br/>
<a id="pl.87.18"></a><var>87.18</var>November 2008, or after the last Monday in November 2009, if the temporary increase in <br/>
<a id="pl.87.19"></a><var>87.19</var>the annual volume is made available for calendar year 2009, in which case the canceled <br/>
<a id="pl.87.20"></a><var>87.20</var>allocation is allocated to the agency; and<br/>
<a id="pl.87.21"></a><var>87.21</var>    (4) any bonding authority attributable to the temporary increase in the annual <br/>
<a id="pl.87.22"></a><var>87.22</var>volume cap that has not been allocated on December 1, 2008, or on December 1, 2009, if <br/>
<a id="pl.87.23"></a><var>87.23</var>the temporary increase in the annual volume is made available for calendar year 2009, is <br/>
<a id="pl.87.24"></a><var>87.24</var>allocated to the agency.<br/>
<a id="pl.87.25"></a><var>87.25</var>    Subd. 5. <b>Single-family housing programs.</b> (a) Bonding authority reserved in the <br/>
<a id="pl.87.26"></a><var>87.26</var>housing pool for single-family housing programs under subdivision 3 is available for <br/>
<a id="pl.87.27"></a><var>87.27</var>single-family housing programs for cities that applied in January 2008, and received an <br/>
<a id="pl.87.28"></a><var>87.28</var>allocation under Minnesota Statutes, section 474A.061, subdivision 2a, in 2008. If the <br/>
<a id="pl.87.29"></a><var>87.29</var>temporary increase in the annual volume is made available for calendar year 2009, the <br/>
<a id="pl.87.30"></a><var>87.30</var>bonding authority reserved in the housing pool for single-family housing programs under <br/>
<a id="pl.87.31"></a><var>87.31</var>subdivision 3 is available for single-family housing programs for cities that applied in <br/>
<a id="pl.87.32"></a><var>87.32</var>January 2009, and received an allocation under Minnesota Statutes, section 474A.061, <br/>
<a id="pl.87.33"></a><var>87.33</var>subdivision 2a, in 2009. The agency shall receive an allocation for mortgage bonds <br/>
<a id="pl.87.34"></a><var>87.34</var>pursuant to this subdivision. For a period of time determined by the agency, the agency <br/>
<a id="pl.87.35"></a><var>87.35</var>may accept applications from the cities for the volume cap.<br/>
<a id="pl.88.1"></a><var>88.1</var>    (b) The agency may issue bonds on behalf of participating cities. The agency shall <br/>
<a id="pl.88.2"></a><var>88.2</var>request an allocation from the commissioner for all applicants and the commissioner <br/>
<a id="pl.88.3"></a><var>88.3</var>shall allocate the requested amount to the agency. Allocations shall be awarded by the <br/>
<a id="pl.88.4"></a><var>88.4</var>commissioner through the last Monday in November 2008 for applications received by <br/>
<a id="pl.88.5"></a><var>88.5</var>4:30 p.m. on the Monday of the week preceding an allocation. If the temporary increase in <br/>
<a id="pl.88.6"></a><var>88.6</var>the annual volume is made available for calendar year 2009, the commissioner shall award <br/>
<a id="pl.88.7"></a><var>88.7</var>allocations through the last Monday in November 2009 for applications received by 4:30 <br/>
<a id="pl.88.8"></a><var>88.8</var>p.m. on the Monday of the week preceding an allocation.<br/>
<a id="pl.88.9"></a><var>88.9</var>    Allocations must be made for each loan on a first-come, first-served basis among <br/>
<a id="pl.88.10"></a><var>88.10</var>the cities. The agency shall submit an application fee under Minnesota Statutes, section <br/>
<a id="pl.88.11"></a><var>88.11</var>474A.03, subdivision 4, and an application deposit equal to two percent of the requested <br/>
<a id="pl.88.12"></a><var>88.12</var>allocation to the commissioner when requesting an allocation from the housing pool <br/>
<a id="pl.88.13"></a><var>88.13</var>under this subdivision. After awarding an allocation and receiving a notice of issuance <br/>
<a id="pl.88.14"></a><var>88.14</var>for mortgage bonds issued on behalf of the participating cities, the commissioner shall <br/>
<a id="pl.88.15"></a><var>88.15</var>transfer the application deposit to the agency.<br/>
<a id="pl.88.16"></a><var>88.16</var>    (c) Total allocations from the housing pool for single-family housing programs <br/>
<a id="pl.88.17"></a><var>88.17</var>under this subdivision may not exceed 31 percent of the allocation to the housing pool <br/>
<a id="pl.88.18"></a><var>88.18</var>under subdivision 3 until November 1, 2008. If the temporary increase in the annual <br/>
<a id="pl.88.19"></a><var>88.19</var>volume is made available for calendar year 2009, the total allocations from the housing <br/>
<a id="pl.88.20"></a><var>88.20</var>pool for single-family housing programs under this subdivision may not exceed 31 percent <br/>
<a id="pl.88.21"></a><var>88.21</var>of the allocation to the housing pool under subdivision 3 until November 1, 2009.<br/>
<a id="pl.88.22"></a><var>88.22</var>    (d) An allocation awarded to the agency for mortgage bonds under this subdivision <br/>
<a id="pl.88.23"></a><var>88.23</var>may be carried forward by the agency as provided in subdivision 6.<br/>
<a id="pl.88.24"></a><var>88.24</var>    Subd. 6. <b>Carryforward.</b> Any issuer that receives an allocation under this section <br/>
<a id="pl.88.25"></a><var>88.25</var>may carry forward the allocation to the extent permitted by federal tax law. The provisions <br/>
<a id="pl.88.26"></a><var>88.26</var>of Minnesota Statutes, section 474A.04, subdivision 1a, do not apply to the carryforward.<br/>
<a id="pl.88.27"></a><var>88.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.0.0"></a>

<a id="bill.6.1.0"></a><a id="pl.88.30"></a><var>88.30</var>    Section 1. Minnesota Statutes 2006, section 126C.41, subdivision 2, is amended to read:<br/>
<a id="pl.88.31"></a><var>88.31</var>    Subd. 2. <b>Retired employee health benefits.</b> A district may levy an amount up to the <br/>
<a id="pl.88.32"></a><var>88.32</var>amount the district is required by the collective bargaining agreement in effect on March <br/>
<a id="pl.88.33"></a><var>88.33</var>30, 1992, to pay for health insurance or unreimbursed medical expenses for licensed <br/>
<a id="pl.88.34"></a><var>88.34</var>and nonlicensed employees who have terminated services in the employing district and <br/>
<a id="pl.88.35"></a><var>88.35</var>withdrawn from active teaching service or other active service, as applicable, before July <br/>
<a id="pl.89.1"></a><var>89.1</var>1, 1992 1998, if a sunset clause is in effect for the current collective bargaining agreement. <br/>
<a id="pl.89.2"></a><var>89.2</var>The total amount of the levy each year may not exceed $600,000.<br/>
<a id="pl.89.3"></a><var>89.3</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2009 and <br/>
<a id="pl.89.4"></a><var>89.4</var>thereafter.<br/>
<br/>
<a id="bill.6.2.0"></a><a id="pl.89.5"></a><var>89.5</var>    Sec. 2. Minnesota Statutes 2006, section 270C.85, subdivision 2, is amended to read:<br/>
<a id="pl.89.6"></a><var>89.6</var>    Subd. 2. <b>Powers and duties.</b> The commissioner shall have and exercise the <br/>
<a id="pl.89.7"></a><var>89.7</var>following powers and duties in administering the property tax laws.<br/>
<a id="pl.89.8"></a><var>89.8</var>    (a) Confer with, advise, and give the necessary instructions and directions to local <br/>
<a id="pl.89.9"></a><var>89.9</var>assessors and local boards of review throughout the state as to their duties under the <br/>
<a id="pl.89.10"></a><var>89.10</var>laws of the state.<br/>
<a id="pl.89.11"></a><var>89.11</var>    (b) Direct proceedings, actions, and prosecutions to be instituted to enforce the <br/>
<a id="pl.89.12"></a><var>89.12</var>laws relating to the liability and punishment of public officers and officers and agents of <br/>
<a id="pl.89.13"></a><var>89.13</var>corporations for failure or negligence to comply with the provisions of the property tax <br/>
<a id="pl.89.14"></a><var>89.14</var>laws, and cause complaints to be made against local assessors, members of boards of <br/>
<a id="pl.89.15"></a><var>89.15</var>equalization, members of boards of review, or any other assessing or taxing officer, to the <br/>
<a id="pl.89.16"></a><var>89.16</var>proper authority, for their removal from office for misconduct or negligence of duty.<br/>
<a id="pl.89.17"></a><var>89.17</var>    (c) Require county attorneys to assist in the commencement of prosecutions in <br/>
<a id="pl.89.18"></a><var>89.18</var>actions or proceedings for removal, forfeiture, and punishment, for violation of the <br/>
<a id="pl.89.19"></a><var>89.19</var>property tax laws in their respective districts or counties.<br/>
<a id="pl.89.20"></a><var>89.20</var>    (d) Require town, city, county, and other public officers to report information as to <br/>
<a id="pl.89.21"></a><var>89.21</var>the assessment of property, and such other information as may be needful in the work of <br/>
<a id="pl.89.22"></a><var>89.22</var>the commissioner, in such form as the commissioner may prescribe.<br/>
<a id="pl.89.23"></a><var>89.23</var>    (e) Transmit to the governor, on or before the third Monday in December of each <br/>
<a id="pl.89.24"></a><var>89.24</var>even-numbered year, and to each member of the legislature, on or before November <br/>
<a id="pl.89.25"></a><var>89.25</var>15 of each even-numbered year, the report of the department for the preceding years, <br/>
<a id="pl.89.26"></a><var>89.26</var>showing all the taxable property subject to the property tax laws and the value of the <br/>
<a id="pl.89.27"></a><var>89.27</var>same, in tabulated form.<br/>
<a id="pl.89.28"></a><var>89.28</var>    (f) Inquire into the methods of assessment and taxation and ascertain whether the <br/>
<a id="pl.89.29"></a><var>89.29</var>assessors faithfully discharge their duties.<br/>
<a id="pl.89.30"></a><var>89.30</var>    (g) Assist local assessors in determining the estimated market value of industrial <br/>
<a id="pl.89.31"></a><var>89.31</var>special-use property. For purposes of this paragraph, "industrial special-use property" <br/>
<a id="pl.89.32"></a><var>89.32</var>means property that:<br/>
<a id="pl.89.33"></a><var>89.33</var>    (1) is designed and equipped for a particular type of industry;<br/>
<a id="pl.89.34"></a><var>89.34</var>    (2) is not easily adapted to some other use due to the unique nature of the facilities;<br/>
<a id="pl.89.35"></a><var>89.35</var>    (3) has facilities totaling at least 75,000 square feet in size; and<br/>
<a id="pl.90.1"></a><var>90.1</var>    (4) has a total estimated market value of $10,000,000 or greater based on the <br/>
<a id="pl.90.2"></a><var>90.2</var>assessor's preliminary determination.<br/>
<a id="pl.90.3"></a><var>90.3</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2009 and <br/>
<a id="pl.90.4"></a><var>90.4</var>thereafter, for taxes payable in 2010 and thereafter.<br/>
<br/>
<a id="bill.6.3.0"></a><a id="pl.90.5"></a><var>90.5</var>    Sec. 3. Minnesota Statutes 2006, section 272.02, subdivision 55, is amended to read:<br/>
<a id="pl.90.6"></a><var>90.6</var>    Subd. 55. <b>Electric generation facility; personal property.</b> Notwithstanding <br/>
<a id="pl.90.7"></a><var>90.7</var>subdivision 9, clause (a), attached machinery and other personal property which is part of <br/>
<a id="pl.90.8"></a><var>90.8</var>an electric generating facility that meets the requirements of this subdivision is exempt. <br/>
<a id="pl.90.9"></a><var>90.9</var>At the time of construction, the facility must (i) be designated as an innovative energy <br/>
<a id="pl.90.10"></a><var>90.10</var>project as defined in section 
         <statute_ref>216B.1694</statute_ref>, (ii) be within a tax relief area as defined in <br/>
<a id="pl.90.11"></a><var>90.11</var>section 
         <statute_ref>273.134</statute_ref>, (iii) have access to existing railroad infrastructure within less than three <br/>
<a id="pl.90.12"></a><var>90.12</var>miles, (iv) have received by resolution approval from the governing body of the county <br/>
<a id="pl.90.13"></a><var>90.13</var>and township or city in which the proposed facility is to be located for the exemption <br/>
<a id="pl.90.14"></a><var>90.14</var>of personal property under this subdivision, and (v) be designed to host at least 500 <br/>
<a id="pl.90.15"></a><var>90.15</var>megawatts of electrical generation.<br/>
<a id="pl.90.16"></a><var>90.16</var>    Construction of the first 500 megawatts of the facility must be commenced after <br/>
<a id="pl.90.17"></a><var>90.17</var>January 1, 2006, and before January 1, 2010 2012. Construction of up to an additional 750 <br/>
<a id="pl.90.18"></a><var>90.18</var>megawatts of generation must be commenced before January 1, 2015. Property eligible <br/>
<a id="pl.90.19"></a><var>90.19</var>for this exemption does not include electric transmission lines and interconnections or gas <br/>
<a id="pl.90.20"></a><var>90.20</var>pipelines and interconnections appurtenant to the property or the facility. To qualify for an <br/>
<a id="pl.90.21"></a><var>90.21</var>exemption under this subdivision, the owner of the electric generation facility must have <br/>
<a id="pl.90.22"></a><var>90.22</var>an agreement with the host county, township or city, and school district, for payment in <br/>
<a id="pl.90.23"></a><var>90.23</var>lieu of personal property taxes to the host county, township or city, and school district.<br/>
<br/>
<a id="bill.6.4.0"></a><a id="pl.90.24"></a><var>90.24</var>    Sec. 4. Minnesota Statutes 2006, section 272.02, subdivision 84, is amended to read:<br/>
<a id="pl.90.25"></a><var>90.25</var>    Subd. 84. <b>Electric generation facility; personal property.</b> Notwithstanding <br/>
<a id="pl.90.26"></a><var>90.26</var>subdivision 9, clause (a), attached machinery and other personal property which is part <br/>
<a id="pl.90.27"></a><var>90.27</var>of a 
         <statute_ref>10.3</statute_ref> megawatt run-of-the-river hydroelectric generation facility and that meets the <br/>
<a id="pl.90.28"></a><var>90.28</var>requirements of this subdivision is exempt. At the time of construction, the facility must:<br/>
<a id="pl.90.29"></a><var>90.29</var>    (1) utilize between 12 and 16 turbine generators at a dam site existing on March <br/>
<a id="pl.90.30"></a><var>90.30</var>31, 1994;<br/>
<a id="pl.90.31"></a><var>90.31</var>    (2) be located on land within 3,000 feet of a 
         <statute_ref>13.8</statute_ref> kilovolt distribution substation; and<br/>
<a id="pl.90.32"></a><var>90.32</var>    (3) be eligible to receive a renewable energy production incentive payment under <br/>
<a id="pl.90.33"></a><var>90.33</var>section 
         <statute_ref>216C.41</statute_ref>.<br/>
<a id="pl.91.1"></a><var>91.1</var>    Construction of the facility must be commenced after April 30, 2006, and before <br/>
<a id="pl.91.2"></a><var>91.2</var>January 1, 2009 2011. Property eligible for this exemption does not include electric <br/>
<a id="pl.91.3"></a><var>91.3</var>transmission lines and interconnections or gas pipelines and interconnections appurtenant <br/>
<a id="pl.91.4"></a><var>91.4</var>to the property or the facility.<br/>
<br/>
<a id="bill.6.5.0"></a><a id="pl.91.5"></a><var>91.5</var>    Sec. 5. Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision <br/>
<a id="pl.91.6"></a><var>91.6</var>to read:<br/>
<a id="pl.91.7"></a><var>91.7</var>    Subd. 88. <b>Fergus Falls historical zone.</b> (a) Property located in the area of the <br/>
<a id="pl.91.8"></a><var>91.8</var>campus of the former state regional treatment center in the city of Fergus Falls, including <br/>
<a id="pl.91.9"></a><var>91.9</var>the five buildings and associated land that were acquired by the city prior to January 1, <br/>
<a id="pl.91.10"></a><var>91.10</var>2007, is exempt from ad valorem taxes levied under chapter 275.<br/>
<a id="pl.91.11"></a><var>91.11</var>    (b) The exemption applies for 15 calendar years from the date specified by resolution <br/>
<a id="pl.91.12"></a><var>91.12</var>of the governing body of the city of Fergus Falls. For the final three assessment years of <br/>
<a id="pl.91.13"></a><var>91.13</var>the duration limit, the exemption applies to the following percentages of estimated market <br/>
<a id="pl.91.14"></a><var>91.14</var>value of the property:<br/>
<a id="pl.91.15"></a><var>91.15</var>    (1) for the third to the last assessment year of the duration, 75 percent;<br/>
<a id="pl.91.16"></a><var>91.16</var>    (2) for the second to the last assessment year of the duration, 50 percent; and<br/>
<a id="pl.91.17"></a><var>91.17</var>    (3) for the last assessment  year of the duration, 25 percent.<br/>
<a id="pl.91.18"></a><var>91.18</var><b>EFFECTIVE DATE.</b>This section is effective for property taxes payable in 2009 <br/>
<a id="pl.91.19"></a><var>91.19</var>and thereafter.<br/>
<br/>
<a id="bill.6.6.0"></a><a id="pl.91.20"></a><var>91.20</var>    Sec. 6. Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision <br/>
<a id="pl.91.21"></a><var>91.21</var>to read:<br/>
<a id="pl.91.22"></a><var>91.22</var>    Subd. 89. <b>Electric generation facility; personal property.</b> (a) Notwithstanding <br/>
<a id="pl.91.23"></a><var>91.23</var>subdivision 9, paragraph (a), attached machinery and other personal property which is <br/>
<a id="pl.91.24"></a><var>91.24</var>part of a simple-cycle combustion-turbine electric generation facility that exceeds 150 <br/>
<a id="pl.91.25"></a><var>91.25</var>megawatts of installed capacity and that meets the requirements of this subdivision is <br/>
<a id="pl.91.26"></a><var>91.26</var>exempt. At the time of construction, the facility must:<br/>
<a id="pl.91.27"></a><var>91.27</var>    (1) utilize natural gas as a primary fuel;<br/>
<a id="pl.91.28"></a><var>91.28</var>    (2) be owned by an electric generation and transmission cooperative;<br/>
<a id="pl.91.29"></a><var>91.29</var>    (3) be located within one mile of an existing 16-inch natural gas pipeline and a <br/>
<a id="pl.91.30"></a><var>91.30</var>69-kilovolt and a 230-kilovolt high-voltage electric transmission line;<br/>
<a id="pl.91.31"></a><var>91.31</var>    (4) be designed to provide peaking, emergency backup, or contingency services;<br/>
<a id="pl.91.32"></a><var>91.32</var>    (5) have received a certificate of need under section 216B.243 demonstrating <br/>
<a id="pl.91.33"></a><var>91.33</var>demand for its capacity; and<br/>
<a id="pl.92.1"></a><var>92.1</var>    (6) have received by resolution the approval from the governing bodies of the county <br/>
<a id="pl.92.2"></a><var>92.2</var>and the city in which the proposed facility is to be located for the exemption of personal <br/>
<a id="pl.92.3"></a><var>92.3</var>property under this subdivision.<br/>
<a id="pl.92.4"></a><var>92.4</var>    (b) Construction of the facility must be commenced after January 1, 2008, and <br/>
<a id="pl.92.5"></a><var>92.5</var>before January 1, 2012. Property eligible for this exemption does not include electric <br/>
<a id="pl.92.6"></a><var>92.6</var>transmission lines and interconnections or gas pipelines and interconnections appurtenant <br/>
<a id="pl.92.7"></a><var>92.7</var>to the property or the facility.<br/>
<a id="pl.92.8"></a><var>92.8</var><b>EFFECTIVE DATE.</b>This section is effective for the 2008 assessment payable in <br/>
<a id="pl.92.9"></a><var>92.9</var>2009 and thereafter.<br/>
<br/>
<a id="bill.6.7.0"></a><a id="pl.92.10"></a><var>92.10</var>    Sec. 7. <b>[272.0213] LEASED SEASONAL-RECREATIONAL LAND.</b><br/>
<a id="pl.92.11"></a><var>92.11</var>    A county board may elect, by resolution, to exempt from taxation, including the <br/>
<a id="pl.92.12"></a><var>92.12</var>tax under section 273.19, qualified lands. "Qualified lands" for purposes of this section <br/>
<a id="pl.92.13"></a><var>92.13</var>means property that:<br/>
<a id="pl.92.14"></a><var>92.14</var>    (1) is owned by a county, city, town, the state, or the federal governments;<br/>
<a id="pl.92.15"></a><var>92.15</var>    (2) is rented by the entity for noncommercial seasonal-recreational or noncommercial <br/>
<a id="pl.92.16"></a><var>92.16</var>seasonal-recreational residential use; and<br/>
<a id="pl.92.17"></a><var>92.17</var>    (3) was rented for the purposes specified in clause (2) and was exempt from taxation <br/>
<a id="pl.92.18"></a><var>92.18</var>for property taxes payable in 2008.<br/>
<a id="pl.92.19"></a><var>92.19</var><b>EFFECTIVE DATE.</b>This section is effective beginning for taxes payable in 2009.<br/>
<br/>
<a id="bill.6.8.0"></a><a id="pl.92.20"></a><var>92.20</var>    Sec. 8. <b>[273.0645] COMMISSIONER REVIEW OF LOCAL ASSESSMENT </b><br/>
<a id="pl.92.21"></a><var>92.21</var><b>PRACTICES.</b><br/>
<a id="pl.92.22"></a><var>92.22</var>    The commissioner of revenue must review the assessment practices in a taxing <br/>
<a id="pl.92.23"></a><var>92.23</var>jurisdiction if requested in writing by a qualifying number of property owners in that <br/>
<a id="pl.92.24"></a><var>92.24</var>taxing jurisdiction. The request must be signed by the greater of:<br/>
<a id="pl.92.25"></a><var>92.25</var>    (1) ten percent of the registered voters who voted in the last general election; or<br/>
<a id="pl.92.26"></a><var>92.26</var>    (2) five property owners.<br/>
<a id="pl.92.27"></a><var>92.27</var>    The request must identify the city, town, or county and describe why a review is <br/>
<a id="pl.92.28"></a><var>92.28</var>sought for that taxing jurisdiction. The commissioner must conduct the review in a <br/>
<a id="pl.92.29"></a><var>92.29</var>reasonable amount of time and report the findings to the county board of the affected <br/>
<a id="pl.92.30"></a><var>92.30</var>county, to the affected city council or town board, if the review is for a specific city or <br/>
<a id="pl.92.31"></a><var>92.31</var>town, and to the property owner designated in the request as the person to receive the <br/>
<a id="pl.92.32"></a><var>92.32</var>report on behalf of all the property owners who signed the request. The commissioner <br/>
<a id="pl.92.33"></a><var>92.33</var>must also provide the report electronically to all property owners who signed the request <br/>
<a id="pl.92.34"></a><var>92.34</var>and provided an e-mail address in order to receive the report electronically.<br/>
<a id="pl.93.1"></a><var>93.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.9.0"></a><a id="pl.93.2"></a><var>93.2</var>    Sec. 9. Minnesota Statutes 2006, section 273.11, subdivision 14a, is amended to read:<br/>
<a id="pl.93.3"></a><var>93.3</var>    Subd. 14a. <b>Vacant land platted on or after August 1, 2001; located in </b><br/>
<a id="pl.93.4"></a><var>93.4</var><b>metropolitan counties.</b> (a) Except as provided in subdivision 14c, all land platted on or <br/>
<a id="pl.93.5"></a><var>93.5</var>after August 1, 2001, located in a metropolitan county, and not improved with a permanent <br/>
<a id="pl.93.6"></a><var>93.6</var>structure, shall be assessed as provided in this subdivision. The assessor shall determine <br/>
<a id="pl.93.7"></a><var>93.7</var>the market value of each individual lot based upon the highest and best use of the property <br/>
<a id="pl.93.8"></a><var>93.8</var>as unplatted land. In establishing the market value of the property, the assessor shall <br/>
<a id="pl.93.9"></a><var>93.9</var>consider the sale price of the unplatted land or comparable sales of unplatted land of <br/>
<a id="pl.93.10"></a><var>93.10</var>similar use and similar availability of public utilities.<br/>
<a id="pl.93.11"></a><var>93.11</var>    (b) The market value determined in paragraph (a) shall be increased as follows for <br/>
<a id="pl.93.12"></a><var>93.12</var>each of the three assessment years immediately following the final approval of the plat: <br/>
<a id="pl.93.13"></a><var>93.13</var>one-third of the difference between the property's unplatted market value as determined <br/>
<a id="pl.93.14"></a><var>93.14</var>under paragraph (a) and the market value based upon the highest and best use of the land <br/>
<a id="pl.93.15"></a><var>93.15</var>as platted property shall be added in each of the three subsequent assessment years.<br/>
<a id="pl.93.16"></a><var>93.16</var>    (c) Any increase in market value after the first assessment year following the plat's <br/>
<a id="pl.93.17"></a><var>93.17</var>final approval shall be added to the property's market value in the next assessment year. <br/>
<a id="pl.93.18"></a><var>93.18</var>Notwithstanding paragraph (b), if the property is sold or transferred, or construction <br/>
<a id="pl.93.19"></a><var>93.19</var>begins before the expiration of the three years in paragraph (b), that lot shall be eligible <br/>
<a id="pl.93.20"></a><var>93.20</var>for revaluation in the next assessment year. The market value of a platted lot determined <br/>
<a id="pl.93.21"></a><var>93.21</var>under this subdivision shall not exceed the value of that lot based upon the highest and <br/>
<a id="pl.93.22"></a><var>93.22</var>best use of the property as platted land.<br/>
<a id="pl.93.23"></a><var>93.23</var>    (d) For purposes of this section, "metropolitan county" means the counties of Anoka, <br/>
<a id="pl.93.24"></a><var>93.24</var>Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.<br/>
<a id="pl.93.25"></a><var>93.25</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.93.26"></a><var>93.26</var>thereafter.<br/>
<br/>
<a id="bill.6.10.0"></a><a id="pl.93.27"></a><var>93.27</var>    Sec. 10. Minnesota Statutes 2006, section 273.11, subdivision 14b, is amended to read:<br/>
<a id="pl.93.28"></a><var>93.28</var>    Subd. 14b. <b>Vacant land platted on or after August 1, 2001; located in </b><br/>
<a id="pl.93.29"></a><var>93.29</var><b>nonmetropolitan counties.</b> (a) All land platted on or after August 1, 2001, located in a <br/>
<a id="pl.93.30"></a><var>93.30</var>nonmetropolitan county, and not improved with a permanent structure, shall be assessed <br/>
<a id="pl.93.31"></a><var>93.31</var>as provided in this subdivision. The assessor shall determine the market value of each <br/>
<a id="pl.93.32"></a><var>93.32</var>individual lot based upon the highest and best use of the property as unplatted land. In <br/>
<a id="pl.93.33"></a><var>93.33</var>establishing the market value of the property, the assessor shall consider the sale price <br/>
<a id="pl.94.1"></a><var>94.1</var>of the unplatted land or comparable sales of unplatted land of similar use and similar <br/>
<a id="pl.94.2"></a><var>94.2</var>availability of public utilities.<br/>
<a id="pl.94.3"></a><var>94.3</var>    (b) The market value determined in paragraph (a) shall be increased as follows for <br/>
<a id="pl.94.4"></a><var>94.4</var>each of the seven assessment years immediately following the final approval of the plat: <br/>
<a id="pl.94.5"></a><var>94.5</var>one-seventh of the difference between the property's unplatted market value as determined <br/>
<a id="pl.94.6"></a><var>94.6</var>under paragraph (a) and the market value based upon the highest and best use of the land <br/>
<a id="pl.94.7"></a><var>94.7</var>as platted property shall be added in each of the seven subsequent assessment years.<br/>
<a id="pl.94.8"></a><var>94.8</var>    (c) Any increase in market value after the first assessment year following the plat's <br/>
<a id="pl.94.9"></a><var>94.9</var>final approval shall be added to the property's market value in the next assessment year. <br/>
<a id="pl.94.10"></a><var>94.10</var>Notwithstanding paragraph (b), if the property is sold or transferred, or construction <br/>
<a id="pl.94.11"></a><var>94.11</var>begins before the expiration of the seven years in paragraph (b), that lot shall be eligible <br/>
<a id="pl.94.12"></a><var>94.12</var>for revaluation in the next assessment year. The market value of a platted lot determined <br/>
<a id="pl.94.13"></a><var>94.13</var>under this subdivision shall not exceed the value of that lot based upon the highest and <br/>
<a id="pl.94.14"></a><var>94.14</var>best use of the property as platted land.<br/>
<a id="pl.94.15"></a><var>94.15</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.94.16"></a><var>94.16</var>thereafter.<br/>
<br/>
<a id="bill.6.11.0"></a><a id="pl.94.17"></a><var>94.17</var>    Sec. 11. Minnesota Statutes 2006, section 273.11, is amended by adding a subdivision <br/>
<a id="pl.94.18"></a><var>94.18</var>to read:<br/>
<a id="pl.94.19"></a><var>94.19</var>    Subd. 14c. <b>Certain vacant land platted on or after August 1, 2001; located </b><br/>
<a id="pl.94.20"></a><var>94.20</var><b>in metropolitan county.</b> (a) All land platted on or after August 1, 2001, located in a <br/>
<a id="pl.94.21"></a><var>94.21</var>metropolitan county and not improved with a structure shall be eligible for the phase-in <br/>
<a id="pl.94.22"></a><var>94.22</var>assessment schedule under this subdivision, provided the property (i) is classified <br/>
<a id="pl.94.23"></a><var>94.23</var>homestead under section 273.13, subdivision 22 or 23, in the assessment year prior to the <br/>
<a id="pl.94.24"></a><var>94.24</var>year the initial platting begins on the property; (ii) has been owned or part-owned by the <br/>
<a id="pl.94.25"></a><var>94.25</var>same person for the ten consecutive years prior to the initial platting; and (iii) remains <br/>
<a id="pl.94.26"></a><var>94.26</var>under the same ownership in the current assessment year.<br/>
<a id="pl.94.27"></a><var>94.27</var>    (b) Based upon the assessor's records, the assessor shall obtain the estimated market <br/>
<a id="pl.94.28"></a><var>94.28</var>value of each individual lot based upon the highest and best use of the property as unplatted <br/>
<a id="pl.94.29"></a><var>94.29</var>land for the assessment year that the property was platted. In establishing the market value <br/>
<a id="pl.94.30"></a><var>94.30</var>of the property, the assessor shall have considered the sale price of the unplatted land or <br/>
<a id="pl.94.31"></a><var>94.31</var>comparable sales of unplatted land of similar use and similar availability of public utilities.<br/>
<a id="pl.94.32"></a><var>94.32</var>    (c) To the market value determined in paragraph (b) shall be added one-seventh <br/>
<a id="pl.94.33"></a><var>94.33</var>of the difference between the property's unplatted market value as determined under <br/>
<a id="pl.94.34"></a><var>94.34</var>paragraph (b) and the market value based upon the highest and best use of the land as <br/>
<a id="pl.95.1"></a><var>95.1</var>platted property in the current year, multiplied by the number of assessment years since <br/>
<a id="pl.95.2"></a><var>95.2</var>the property was platted, in each of the subsequent assessment years.<br/>
<a id="pl.95.3"></a><var>95.3</var>    (d) Notwithstanding paragraph (c), if the property is sold or transferred, or <br/>
<a id="pl.95.4"></a><var>95.4</var>construction begins before the expiration of the phase-in in paragraph (c), that lot shall <br/>
<a id="pl.95.5"></a><var>95.5</var>be eligible for revaluation in the next assessment year. The market value of a platted lot <br/>
<a id="pl.95.6"></a><var>95.6</var>determined under this subdivision shall not exceed the value of that lot based upon the <br/>
<a id="pl.95.7"></a><var>95.7</var>highest and best use of the property as platted land.<br/>
<a id="pl.95.8"></a><var>95.8</var>    (e) Any owner of eligible property platted before July 1, 2008, must file an <br/>
<a id="pl.95.9"></a><var>95.9</var>application with the assessor in order to receive the phase-in under this subdivision for the <br/>
<a id="pl.95.10"></a><var>95.10</var>remainder of the seven-year period. The application must be filed before July 1 in order <br/>
<a id="pl.95.11"></a><var>95.11</var>for the property to be eligible for the current year's assessment. The commissioner shall <br/>
<a id="pl.95.12"></a><var>95.12</var>prescribe a uniform application form and instructions.<br/>
<a id="pl.95.13"></a><var>95.13</var>    (f) For purposes of this section, "metropolitan county" means the counties of Anoka, <br/>
<a id="pl.95.14"></a><var>95.14</var>Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.<br/>
<a id="pl.95.15"></a><var>95.15</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2009 and <br/>
<a id="pl.95.16"></a><var>95.16</var>thereafter, except that the portion of paragraph (d) referring to a lot that is sold or <br/>
<a id="pl.95.17"></a><var>95.17</var>transferred is effective for taxes payable in 2010 and thereafter.<br/>
<br/>
<a id="bill.6.12.0"></a><a id="pl.95.18"></a><var>95.18</var>    Sec. 12. Minnesota Statutes 2006, section 273.111, subdivision 3, as amended by Laws <br/>
<a id="pl.95.19"></a><var>95.19</var>2008, chapter 154, article 13, section 26, is amended to read:<br/>
<a id="pl.95.20"></a><var>95.20</var>    Subd. 3.  <b>Requirements.</b> (a) Real estate consisting of ten acres or more or a nursery <br/>
<a id="pl.95.21"></a><var>95.21</var>or greenhouse, and qualifying for classification as class 1b, 2a, or 2b under section 
         <statute_ref>273.13, <br/>
</statute_ref><a id="pl.95.22"></a><var>95.22</var>shall be entitled to valuation and tax deferment under this section only if it is primarily <br/>
<a id="pl.95.23"></a><var>95.23</var>devoted to agricultural use, and meets the qualifications in subdivision 6, and either: <br/>
<a id="pl.95.24"></a><var>95.24</var>    (1) is the homestead of the owner, or of a surviving spouse, child, or sibling of the <br/>
<a id="pl.95.25"></a><var>95.25</var>owner or is real estate which is farmed with the real estate which contains the homestead <br/>
<a id="pl.95.26"></a><var>95.26</var>property; or <br/>
<a id="pl.95.27"></a><var>95.27</var>    (2) has been in possession of the applicant, the applicant's spouse, parent, or sibling, <br/>
<a id="pl.95.28"></a><var>95.28</var>or any combination thereof, for a period of at least seven years prior to application for <br/>
<a id="pl.95.29"></a><var>95.29</var>benefits under the provisions of this section, or is real estate which is farmed with the <br/>
<a id="pl.95.30"></a><var>95.30</var>real estate which qualifies under this clause and is within four townships or cities or <br/>
<a id="pl.95.31"></a><var>95.31</var>combination thereof from the qualifying real estate; or <br/>
<a id="pl.95.32"></a><var>95.32</var>    (3) is the homestead of a shareholder in a family farm corporation as defined in <br/>
<a id="pl.95.33"></a><var>95.33</var>section 
<statute_ref>500.24</statute_ref>, notwithstanding the fact that legal title to the real estate may be held in <br/>
<a id="pl.95.34"></a><var>95.34</var>the name of the family farm corporation an individual who is part of an entity described <br/>
<a id="pl.95.35"></a><var>95.35</var>in paragraph (b), clause (1), (2), or (3); or <br/>
<a id="pl.96.1"></a><var>96.1</var>    (4) is in the possession of a nursery or greenhouse or an entity owned by a proprietor, <br/>
<a id="pl.96.2"></a><var>96.2</var>partnership, or corporation which also owns the nursery or greenhouse operations on the <br/>
<a id="pl.96.3"></a><var>96.3</var>parcel or parcels, provided that only the acres used to produce nursery stock qualify <br/>
<a id="pl.96.4"></a><var>96.4</var>for treatment under this section. <br/>
<a id="pl.96.5"></a><var>96.5</var>    (b) Valuation of real estate under this section is limited to parcels the ownership of <br/>
<a id="pl.96.6"></a><var>96.6</var>which is in noncorporate entities owned by individuals  except for: <br/>
<a id="pl.96.7"></a><var>96.7</var>    (1) a family farm corporations organized pursuant to entity or authorized farm entity <br/>
<a id="pl.96.8"></a><var>96.8</var>regulated under  section 
         <statute_ref>500.24</statute_ref>; and <br/>
<a id="pl.96.9"></a><var>96.9</var>    (2) a poultry entity other than a limited liability entity in which the majority of the <br/>
<a id="pl.96.10"></a><var>96.10</var>members, partners, or shareholders are related and at least one of the members, partners, <br/>
<a id="pl.96.11"></a><var>96.11</var>or shareholders either resides on the land or actively operates the land; and<br/>
<a id="pl.96.12"></a><var>96.12</var>    (3) corporations that derive 80 percent or more of their gross receipts from the <br/>
<a id="pl.96.13"></a><var>96.13</var>wholesale or retail sale of horticultural or nursery stock. <br/>
<a id="pl.96.14"></a><var>96.14</var>    The terms in this paragraph have the meanings given in section 500.24, where <br/>
<a id="pl.96.15"></a><var>96.15</var>applicable.<br/>
<a id="pl.96.16"></a><var>96.16</var>    (c) Land that previously qualified for tax deferment under this section and no longer <br/>
<a id="pl.96.17"></a><var>96.17</var>qualifies because it is not primarily used for agricultural purposes but would otherwise <br/>
<a id="pl.96.18"></a><var>96.18</var>qualify under subdivisions Minnesota Statutes 2006, section 273.111, subdivision 3 and 6, <br/>
<a id="pl.96.19"></a><var>96.19</var> for a period of at least three years will not be required to make payment of the previously <br/>
<a id="pl.96.20"></a><var>96.20</var>deferred taxes, notwithstanding the provisions of subdivision 9. Sale of the land prior to <br/>
<a id="pl.96.21"></a><var>96.21</var>the expiration of the three-year period requires payment of deferred taxes as follows: sale <br/>
<a id="pl.96.22"></a><var>96.22</var>in the year the land no longer qualifies requires payment of the current year's deferred <br/>
<a id="pl.96.23"></a><var>96.23</var>taxes plus payment of deferred taxes for the two prior years; sale during the second year <br/>
<a id="pl.96.24"></a><var>96.24</var>the land no longer qualifies requires payment of the current year's deferred taxes plus <br/>
<a id="pl.96.25"></a><var>96.25</var>payment of the deferred taxes for the prior year; and sale during the third year the land <br/>
<a id="pl.96.26"></a><var>96.26</var>no longer qualifies requires payment of the current year's deferred taxes. Deferred taxes <br/>
<a id="pl.96.27"></a><var>96.27</var>shall be paid even if the land qualifies pursuant to subdivision 11a. When such property is <br/>
<a id="pl.96.28"></a><var>96.28</var>sold or no longer qualifies under this paragraph, or at the end of the three-year period, <br/>
<a id="pl.96.29"></a><var>96.29</var>whichever comes first, all deferred special assessments plus interest are payable in equal <br/>
<a id="pl.96.30"></a><var>96.30</var>installments spread over the time remaining until the last maturity date of the bonds issued <br/>
<a id="pl.96.31"></a><var>96.31</var>to finance the improvement for which the assessments were levied. If the bonds have <br/>
<a id="pl.96.32"></a><var>96.32</var>matured, the deferred special assessments plus interest are payable within 90 days. The <br/>
<a id="pl.96.33"></a><var>96.33</var>provisions of section 
         <statute_ref>429.061, subdivision 2</statute_ref>, apply to the collection of these installments. <br/>
<a id="pl.96.34"></a><var>96.34</var>Penalties are not imposed on any such special assessments if timely paid. <br/>
<a id="pl.96.35"></a><var>96.35</var>    (d) Land that is enrolled in the reinvest in Minnesota program under sections <br/>
<a id="pl.96.36"></a><var>96.36</var>103F.501 to 103F.535, the federal Conservation Reserve Program as contained in Public <br/>
<a id="pl.97.1"></a><var>97.1</var>Law 99-198, or a similar state or federal conservation program does not qualify for <br/>
<a id="pl.97.2"></a><var>97.2</var>valuation and assessment deferral under this section. This paragraph applies to land that <br/>
<a id="pl.97.3"></a><var>97.3</var>has not qualified under this section for taxes payable in 2009 or previous years.<br/>
<a id="pl.97.4"></a><var>97.4</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.97.5"></a><var>97.5</var>thereafter.<br/>
<br/>
<a id="bill.6.13.0"></a><a id="pl.97.6"></a><var>97.6</var>    Sec. 13. Minnesota Statutes 2006, section 273.111, is amended by adding a subdivision <br/>
<a id="pl.97.7"></a><var>97.7</var>to read:<br/>
<a id="pl.97.8"></a><var>97.8</var>    Subd. 3a. <b>Property no longer eligible for deferment.</b> (a) Real estate receiving <br/>
<a id="pl.97.9"></a><var>97.9</var>the tax deferment under this section for assessment year 2008, but that does not qualify <br/>
<a id="pl.97.10"></a><var>97.10</var>for the 2009 assessment year due to changes in qualification requirements under this act, <br/>
<a id="pl.97.11"></a><var>97.11</var>shall continue to qualify until any part of the land is sold, transferred, or subdivided, <br/>
<a id="pl.97.12"></a><var>97.12</var>provided that the property continues to meet the requirements of Minnesota Statutes 2006, <br/>
<a id="pl.97.13"></a><var>97.13</var>section 273.111, subdivision 3.<br/>
<a id="pl.97.14"></a><var>97.14</var>    (b) When property assessed under this subdivision is withdrawn from the program or <br/>
<a id="pl.97.15"></a><var>97.15</var>becomes ineligible, the property shall be subject to additional taxes, in the amount equal <br/>
<a id="pl.97.16"></a><var>97.16</var>to the average difference between the taxes determined in accordance with subdivision <br/>
<a id="pl.97.17"></a><var>97.17</var>4, and the amount determined under subdivision 5, for the current year and the two <br/>
<a id="pl.97.18"></a><var>97.18</var>preceding years, multiplied by (1) three, in the case of class 2a property under section <br/>
<a id="pl.97.19"></a><var>97.19</var>273.13, subdivision 23, or any property withdrawn before January 2, 2009, or (2) seven, in <br/>
<a id="pl.97.20"></a><var>97.20</var>the case of property withdrawn after January 2, 2009, that is not class 2a property. The <br/>
<a id="pl.97.21"></a><var>97.21</var>number of years used as the multiplier must not exceed the number of years during which <br/>
<a id="pl.97.22"></a><var>97.22</var>the property was subject to this section. The amount determined under subdivision 5 shall <br/>
<a id="pl.97.23"></a><var>97.23</var>not be greater than it would have been had the actual bona fide sale price of the real <br/>
<a id="pl.97.24"></a><var>97.24</var>property at an arm's-length transaction been used in lieu of the market value determined <br/>
<a id="pl.97.25"></a><var>97.25</var>under subdivision 5. The additional taxes shall be extended against the property on the <br/>
<a id="pl.97.26"></a><var>97.26</var>tax list for the current year, provided that no interest or penalties shall be levied on the <br/>
<a id="pl.97.27"></a><var>97.27</var>additional taxes if timely paid.<br/>
<a id="pl.97.28"></a><var>97.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.14.0"></a><a id="pl.97.29"></a><var>97.29</var>    Sec. 14. Minnesota Statutes 2006, section 273.111, subdivision 4, is amended to read:<br/>
<a id="pl.97.30"></a><var>97.30</var>    Subd. 4. <b>Determination of value.</b> (a) The value of any real estate described <br/>
<a id="pl.97.31"></a><var>97.31</var>in subdivision 3 shall upon timely application by the owner, in the manner provided <br/>
<a id="pl.97.32"></a><var>97.32</var>in subdivision 8, be determined solely with reference to its appropriate agricultural <br/>
<a id="pl.97.33"></a><var>97.33</var>classification and value notwithstanding sections 
         <statute_ref>272.03, subdivision 8</statute_ref>, and 
         <statute_ref>273.11</statute_ref>. In <br/>
<a id="pl.97.34"></a><var>97.34</var>determining the value for ad valorem tax purposes, the assessor shall use sales data for <br/>
<a id="pl.98.1"></a><var>98.1</var>agricultural lands located outside the seven metropolitan counties having similar soil <br/>
<a id="pl.98.2"></a><var>98.2</var>types, number of degree days, and other similar agricultural characteristics. Furthermore, <br/>
<a id="pl.98.3"></a><var>98.3</var>the assessor shall not consider any added values resulting from nonagricultural factors. <br/>
<a id="pl.98.4"></a><var>98.4</var>In order to account for the presence of nonagricultural influences that may affect the value <br/>
<a id="pl.98.5"></a><var>98.5</var>of agricultural land, the commissioner of revenue shall develop a fair and uniform method <br/>
<a id="pl.98.6"></a><var>98.6</var>of determining agricultural values for each county in the state that are consistent with this <br/>
<a id="pl.98.7"></a><var>98.7</var>subdivision. The commissioner shall annually assign the resulting values to each county, <br/>
<a id="pl.98.8"></a><var>98.8</var>and these values shall be used as the basis for determining the agricultural value for all <br/>
<a id="pl.98.9"></a><var>98.9</var>properties in the county qualifying for tax deferment under this section.<br/>
<a id="pl.98.10"></a><var>98.10</var>    (b) In the case of property qualifying for tax deferment only under subdivision 3a, <br/>
<a id="pl.98.11"></a><var>98.11</var>the value shall be based on the value in effect for assessment year 2008, multiplied by <br/>
<a id="pl.98.12"></a><var>98.12</var>the ratio of the total taxable market value of all property in the county for the current <br/>
<a id="pl.98.13"></a><var>98.13</var>assessment year divided by the total taxable market value of all property in the county <br/>
<a id="pl.98.14"></a><var>98.14</var>for assessment year 2008.<br/>
<a id="pl.98.15"></a><var>98.15</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2009 and <br/>
<a id="pl.98.16"></a><var>98.16</var>thereafter.<br/>
<br/>
<a id="bill.6.15.0"></a><a id="pl.98.17"></a><var>98.17</var>    Sec. 15. Minnesota Statutes 2006, section 273.111, subdivision 8, is amended to read:<br/>
<a id="pl.98.18"></a><var>98.18</var>    Subd. 8. <b>Application.</b> Application for deferment of taxes and assessment under this <br/>
<a id="pl.98.19"></a><var>98.19</var>section shall be filed by May 1 of the year prior to the year in which the taxes are payable. <br/>
<a id="pl.98.20"></a><var>98.20</var>Any application filed hereunder and granted shall continue in effect for subsequent years <br/>
<a id="pl.98.21"></a><var>98.21</var>until the property no longer qualifies. Such The application shall must be filed with the <br/>
<a id="pl.98.22"></a><var>98.22</var>assessor of the taxing district in which the real property is located on such the form as <br/>
<a id="pl.98.23"></a><var>98.23</var>may be prescribed by the commissioner of revenue. The assessor may require proof by <br/>
<a id="pl.98.24"></a><var>98.24</var>affidavit or otherwise that the property qualifies under subdivisions subdivision 3 and 6 <br/>
<a id="pl.98.25"></a><var>98.25</var>and may require the applicant to provide a copy of the appropriate schedule or form <br/>
<a id="pl.98.26"></a><var>98.26</var>showing farm income that is attested to by the applicant as having been included in the <br/>
<a id="pl.98.27"></a><var>98.27</var>most recently filed federal income tax return of the applicant.<br/>
<a id="pl.98.28"></a><var>98.28</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed after May <br/>
<a id="pl.98.29"></a><var>98.29</var>1, 2008.<br/>
<br/>
<a id="bill.6.16.0"></a><a id="pl.98.30"></a><var>98.30</var>    Sec. 16. Minnesota Statutes 2006, section 273.111, subdivision 9, is amended to read:<br/>
<a id="pl.98.31"></a><var>98.31</var>    Subd. 9. <b>Additional taxes.</b> When real property which is being, or has been valued <br/>
<a id="pl.98.32"></a><var>98.32</var>and assessed under this section no longer qualifies under subdivisions subdivision 3 and 6, <br/>
<a id="pl.98.33"></a><var>98.33</var>the portion no longer qualifying shall be subject to additional taxes, in the amount equal to <br/>
<a id="pl.98.34"></a><var>98.34</var>the difference between the taxes determined in accordance with subdivision 4, and the <br/>
<a id="pl.99.1"></a><var>99.1</var>amount determined under subdivision 5. Provided, however, that the amount determined <br/>
<a id="pl.99.2"></a><var>99.2</var>under subdivision 5 shall not be greater than it would have been had the actual bona fide <br/>
<a id="pl.99.3"></a><var>99.3</var>sale price of the real property at an arm's-length transaction been used in lieu of the market <br/>
<a id="pl.99.4"></a><var>99.4</var>value determined under subdivision 5. Such additional taxes shall be extended against <br/>
<a id="pl.99.5"></a><var>99.5</var>the property on the tax list for the current year, provided, however, that no interest or <br/>
<a id="pl.99.6"></a><var>99.6</var>penalties shall be levied on such additional taxes if timely paid, and provided further, that <br/>
<a id="pl.99.7"></a><var>99.7</var>such additional taxes shall only be levied with respect to the last three years that the said <br/>
<a id="pl.99.8"></a><var>99.8</var>property has been valued and assessed under this section.<br/>
<a id="pl.99.9"></a><var>99.9</var><b>EFFECTIVE DATE.</b>This section is effective for deferred taxes payable in 2009 <br/>
<a id="pl.99.10"></a><var>99.10</var>and thereafter.<br/>
<br/>
<a id="bill.6.17.0"></a><a id="pl.99.11"></a><var>99.11</var>    Sec. 17. Minnesota Statutes 2006, section 273.111, subdivision 11, is amended to read:<br/>
<a id="pl.99.12"></a><var>99.12</var>    Subd. 11. <b>Special local assessments.</b> The payment of special local assessments <br/>
<a id="pl.99.13"></a><var>99.13</var>levied after June 1, 1967, for improvements made to any real property described in <br/>
<a id="pl.99.14"></a><var>99.14</var>subdivision 3 together with the interest thereon shall, on timely application as provided <br/>
<a id="pl.99.15"></a><var>99.15</var>in subdivision 8, be deferred as long as such property meets the conditions contained in <br/>
<a id="pl.99.16"></a><var>99.16</var>subdivisions subdivision 3 and 6 or 3a or is transferred to an agricultural preserve under <br/>
<a id="pl.99.17"></a><var>99.17</var>sections 
         <statute_ref>473H.02</statute_ref> to 
         <statute_ref>473H.17</statute_ref>. If special assessments against the property have been <br/>
<a id="pl.99.18"></a><var>99.18</var>deferred pursuant to this subdivision, the governmental unit shall file with the county <br/>
<a id="pl.99.19"></a><var>99.19</var>recorder in the county in which the property is located a certificate containing the legal <br/>
<a id="pl.99.20"></a><var>99.20</var>description of the affected property and of the amount deferred. When such property <br/>
<a id="pl.99.21"></a><var>99.21</var>no longer qualifies under subdivisions subdivision 3 and 6 or 3a, all deferred special <br/>
<a id="pl.99.22"></a><var>99.22</var>assessments plus interest shall be payable in equal installments spread over the time <br/>
<a id="pl.99.23"></a><var>99.23</var>remaining until the last maturity date of the bonds issued to finance the improvement <br/>
<a id="pl.99.24"></a><var>99.24</var>for which the assessments were levied. If the bonds have matured, the deferred special <br/>
<a id="pl.99.25"></a><var>99.25</var>assessments plus interest shall be payable within 90 days. The provisions of section <br/>
<statute_ref><a id="pl.99.26"></a><var>99.26</var>429.061, subdivision 2
         </statute_ref>, apply to the collection of these installments. Penalty shall not be <br/>
<a id="pl.99.27"></a><var>99.27</var>levied on any such special assessments if timely paid. <br/>
<a id="pl.99.28"></a><var>99.28</var><b>EFFECTIVE DATE.</b>This section is effective for deferred taxes payable in 2009 <br/>
<a id="pl.99.29"></a><var>99.29</var>and thereafter.<br/>
<br/>
<a id="bill.6.18.0"></a><a id="pl.99.30"></a><var>99.30</var>    Sec. 18. Minnesota Statutes 2006, section 273.111, subdivision 11a, is amended to read:<br/>
<a id="pl.99.31"></a><var>99.31</var>    Subd. 11a. <b>Continuation of tax treatment upon sale.</b> When real property <br/>
<a id="pl.99.32"></a><var>99.32</var>qualifying under subdivisions subdivision 3 and 6 is sold, no additional taxes or deferred <br/>
<a id="pl.99.33"></a><var>99.33</var>special assessments plus interest shall be extended against the property provided the <br/>
<a id="pl.100.1"></a><var>100.1</var>property continues to qualify pursuant to subdivisions subdivision 3 and 6, and provided <br/>
<a id="pl.100.2"></a><var>100.2</var>the new owner files an application for continued deferment within 30 days after the sale.<br/>
<a id="pl.100.3"></a><var>100.3</var>    For purposes of meeting the income requirements of subdivision 6, the property <br/>
<a id="pl.100.4"></a><var>100.4</var>purchased shall be considered in conjunction with other qualifying property owned by <br/>
<a id="pl.100.5"></a><var>100.5</var>the purchaser.<br/>
<a id="pl.100.6"></a><var>100.6</var><b>EFFECTIVE DATE.</b>This section is effective for deferred taxes payable in 2009 <br/>
<a id="pl.100.7"></a><var>100.7</var>and thereafter.<br/>
<br/>
<a id="bill.6.19.0"></a><a id="pl.100.8"></a><var>100.8</var>    Sec. 19. Minnesota Statutes 2006, section 273.111, subdivision 14, is amended to read:<br/>
<a id="pl.100.9"></a><var>100.9</var>    Subd. 14. <b>Applicability of special assessment provisions.</b> (a) This section shall <br/>
<a id="pl.100.10"></a><var>100.10</var>apply to special local assessments levied after July 1, 1967, and payable in the years <br/>
<a id="pl.100.11"></a><var>100.11</var>thereafter, but shall not apply to any special assessments levied at any time by a county <br/>
<a id="pl.100.12"></a><var>100.12</var>or district court under the provisions of chapter 116A or by a watershed district under <br/>
<a id="pl.100.13"></a><var>100.13</var>chapter 103D.<br/>
<a id="pl.100.14"></a><var>100.14</var>    (b) For special assessments levied by a watershed district under chapter 103D before <br/>
<a id="pl.100.15"></a><var>100.15</var>June 1, 2008, this section is effective only for real property initially qualifying for tax <br/>
<a id="pl.100.16"></a><var>100.16</var>deferment after May 31, 2008. For special assessments by a watershed district under <br/>
<a id="pl.100.17"></a><var>100.17</var>chapter 103D levied after May 31, 2008, this section is effective for all real property <br/>
<a id="pl.100.18"></a><var>100.18</var>qualifying for tax deferment under this section.<br/>
<a id="pl.100.19"></a><var>100.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.20.0"></a><a id="pl.100.20"></a><var>100.20</var>    Sec. 20. Minnesota Statutes 2006, section 273.111, is amended by adding a subdivision <br/>
<a id="pl.100.21"></a><var>100.21</var>to read:<br/>
<a id="pl.100.22"></a><var>100.22</var>    Subd. 17. <b>Implementation of program.</b> This section must be applied to eligible <br/>
<a id="pl.100.23"></a><var>100.23</var>properties by all county assessors, beginning no later than assessments for taxes levied <br/>
<a id="pl.100.24"></a><var>100.24</var>in 2009, payable in 2010, and thereafter, unless the commissioner of revenue determines <br/>
<a id="pl.100.25"></a><var>100.25</var>that a county is unable to comply with this requirement, in which case the county must <br/>
<a id="pl.100.26"></a><var>100.26</var>implement it for taxes levied in 2010, payable in 2011, and thereafter.<br/>
<br/>
<a id="bill.6.21.0"></a><a id="pl.100.27"></a><var>100.27</var>    Sec. 21. <b>[273.1115] AGGREGATE RESOURCE PRESERVATION PROPERTY </b><br/>
<a id="pl.100.28"></a><var>100.28</var><b>TAX LAW.</b><br/>
<a id="pl.100.29"></a><var>100.29</var>    Subdivision 1. <b>Definitions.</b> For purposes of this section, "commercial aggregate <br/>
<a id="pl.100.30"></a><var>100.30</var>deposit" and "actively mined" have the meanings given them in section 273.13, <br/>
<a id="pl.100.31"></a><var>100.31</var>subdivision 23, paragraph (l).<br/>
<a id="pl.101.1"></a><var>101.1</var>    Subd. 2. <b>Requirement.</b> Real estate is entitled to valuation under this section only if <br/>
<a id="pl.101.2"></a><var>101.2</var>all of the following requirements are met:<br/>
<a id="pl.101.3"></a><var>101.3</var>    (1) the property is classified 1a, 1b, 2a, or 2b property under section 273.13, <br/>
<a id="pl.101.4"></a><var>101.4</var>subdivisions 22 and 23;<br/>
<a id="pl.101.5"></a><var>101.5</var>    (2) the property is at least ten contiguous acres, when the application is filed under <br/>
<a id="pl.101.6"></a><var>101.6</var>subdivision 3;<br/>
<a id="pl.101.7"></a><var>101.7</var>    (3) the owner has filed a completed application for deferment as specified in <br/>
<a id="pl.101.8"></a><var>101.8</var>subdivision 3 with the county assessor in the county in which the property is located;<br/>
<a id="pl.101.9"></a><var>101.9</var>    (4) there are no delinquent taxes on the property; and<br/>
<a id="pl.101.10"></a><var>101.10</var>    (5) a covenant on the land restricts its use as provided in subdivision 3, clause (4).<br/>
<a id="pl.101.11"></a><var>101.11</var>    Subd. 3. <b>Application.</b> Application for valuation deferment under this section <br/>
<a id="pl.101.12"></a><var>101.12</var>must be filed by May 1 of the assessment year. Any application filed and granted <br/>
<a id="pl.101.13"></a><var>101.13</var>continues in effect for subsequent years until the property no longer qualifies, provided <br/>
<a id="pl.101.14"></a><var>101.14</var>that supplemental affidavits under subdivision 8 are timely filed. The application must <br/>
<a id="pl.101.15"></a><var>101.15</var>be filed with the assessor of the county in which the real property is located on such <br/>
<a id="pl.101.16"></a><var>101.16</var>form as may be prescribed by the commissioner of revenue. The application must be <br/>
<a id="pl.101.17"></a><var>101.17</var>executed and acknowledged in the manner required by law to execute and acknowledge a <br/>
<a id="pl.101.18"></a><var>101.18</var>deed and must contain at least the following information and any other information the <br/>
<a id="pl.101.19"></a><var>101.19</var>commissioner deems necessary:<br/>
<a id="pl.101.20"></a><var>101.20</var>    (1) the legal description of the area;<br/>
<a id="pl.101.21"></a><var>101.21</var>    (2) the name and address of owner;<br/>
<a id="pl.101.22"></a><var>101.22</var>    (3) a copy of the affidavit filed under section 273.13, subdivision 23, paragraph <br/>
<a id="pl.101.23"></a><var>101.23</var>(l), when property is classified as:<br/>
<a id="pl.101.24"></a><var>101.24</var>    (i) 1b under section 273.13, subdivision 22, paragraph (b);<br/>
<a id="pl.101.25"></a><var>101.25</var>    (ii) 2a under section 273.13, subdivision 23;<br/>
<a id="pl.101.26"></a><var>101.26</var>    (iii) 2b under section 273.13, subdivision 23; or<br/>
<a id="pl.101.27"></a><var>101.27</var>    (iv) 2e under section 273.13, subdivision 23, paragraph (l).<br/>
<a id="pl.101.28"></a><var>101.28</var>    The application must include a similar document with the same information as <br/>
<a id="pl.101.29"></a><var>101.29</var>contained in the affidavit under section 273.13, subdivision 23, paragraph (l); and<br/>
<a id="pl.101.30"></a><var>101.30</var>    (4) a statement of proof from the owner that the land contains a restrictive covenant <br/>
<a id="pl.101.31"></a><var>101.31</var>limiting its use for the property's surface to that which exists on the date of the application <br/>
<a id="pl.101.32"></a><var>101.32</var>and limiting its future use to the preparation and removal of the commercial aggregate <br/>
<a id="pl.101.33"></a><var>101.33</var>deposit under its surface. To qualify under this clause, the covenant must be binding on <br/>
<a id="pl.101.34"></a><var>101.34</var>the owner or the owner's successor or assignee, and run with the land, except as provided <br/>
<a id="pl.101.35"></a><var>101.35</var>in subdivision 5 allowing for the cancellation of the covenant under certain conditions.<br/>
<a id="pl.102.1"></a><var>102.1</var>    Subd. 4. <b>Determination of value.</b> Upon timely application by the owner as provided <br/>
<a id="pl.102.2"></a><var>102.2</var>in subdivision 3, notwithstanding sections 272.03, subdivision 8, and 273.11, the value of <br/>
<a id="pl.102.3"></a><var>102.3</var>any qualifying land described in subdivision 3 must be valued as if it were agricultural <br/>
<a id="pl.102.4"></a><var>102.4</var>property, using a per acre valuation equal to the current assessment year's average per acre <br/>
<a id="pl.102.5"></a><var>102.5</var>valuation of agricultural land in the county. The assessor shall not consider any additional <br/>
<a id="pl.102.6"></a><var>102.6</var>value resulting from potential alternative and future uses of the property. The buildings <br/>
<a id="pl.102.7"></a><var>102.7</var>located on the land shall be valued by the assessor in the normal manner.<br/>
<a id="pl.102.8"></a><var>102.8</var>    Subd. 5. <b>Cancellation of covenant.</b> The covenant required under subdivision <br/>
<a id="pl.102.9"></a><var>102.9</var>3 may be canceled in two ways:<br/>
<a id="pl.102.10"></a><var>102.10</var>    (1) by the owner beginning with the next subsequent assessment year provided <br/>
<a id="pl.102.11"></a><var>102.11</var>that the additional taxes as determined under subdivision 7 are paid by the owner at the <br/>
<a id="pl.102.12"></a><var>102.12</var>time of cancellation; or<br/>
<a id="pl.102.13"></a><var>102.13</var>    (2) by the city or town in which the property is located beginning with the next <br/>
<a id="pl.102.14"></a><var>102.14</var>subsequent assessment year, if the city council or town board:<br/>
<a id="pl.102.15"></a><var>102.15</var>    (i) changes the conditional use of the property;<br/>
<a id="pl.102.16"></a><var>102.16</var>    (ii) revokes the mining permit; or<br/>
<a id="pl.102.17"></a><var>102.17</var>    (iii) changes the zoning to disallow mining.<br/>
<a id="pl.102.18"></a><var>102.18</var>    No additional taxes are imposed on the property under this clause.<br/>
<a id="pl.102.19"></a><var>102.19</var>    Subd. 6. <b>County termination.</b> Within two years of the effective date of this section, <br/>
<a id="pl.102.20"></a><var>102.20</var>a county may, following notice and public hearing, terminate application of this section <br/>
<a id="pl.102.21"></a><var>102.21</var>in the county. The termination is effective upon adoption of a resolution of the county <br/>
<a id="pl.102.22"></a><var>102.22</var>board. A county has 60 days from receipt of the first application for enrollment under <br/>
<a id="pl.102.23"></a><var>102.23</var>this section to notify the applicant and any subsequent applicants of the county's intent <br/>
<a id="pl.102.24"></a><var>102.24</var>to begin the process of terminating application of this section in the county. The county <br/>
<a id="pl.102.25"></a><var>102.25</var>must act on the termination within six months. Upon termination by a vote of the county <br/>
<a id="pl.102.26"></a><var>102.26</var>board, all applications received prior to and during notification of intent to terminate shall <br/>
<a id="pl.102.27"></a><var>102.27</var>be deemed void. If the county board does not act on the termination within six months of <br/>
<a id="pl.102.28"></a><var>102.28</var>notification, all applications for valuation for deferment received shall be deemed eligible <br/>
<a id="pl.102.29"></a><var>102.29</var>for consideration to be enrolled under this section. Following this initial 60-day grace <br/>
<a id="pl.102.30"></a><var>102.30</var>period, a termination applies prospectively and does not affect property enrolled under this <br/>
<a id="pl.102.31"></a><var>102.31</var>section prior to the termination date. A county may reauthorize application of this section <br/>
<a id="pl.102.32"></a><var>102.32</var>by a resolution of the county board revoking the termination.<br/>
<a id="pl.102.33"></a><var>102.33</var>    Subd. 7. <b>Additional taxes.</b> When real property which has been valued and assessed <br/>
<a id="pl.102.34"></a><var>102.34</var>under this section no longer qualifies, the portion of the land classified under subdivision <br/>
<a id="pl.102.35"></a><var>102.35</var>2, clause (1), is subject to additional taxes. The additional tax amount is determined by:<br/>
<a id="pl.103.1"></a><var>103.1</var>    (1) computing the difference between (i) the current year's taxes determined in <br/>
<a id="pl.103.2"></a><var>103.2</var>accordance with subdivision 4, and (ii) an amount as determined by the assessor based <br/>
<a id="pl.103.3"></a><var>103.3</var>upon the property's current year's estimated market value of like real estate at its highest <br/>
<a id="pl.103.4"></a><var>103.4</var>and best use and the appropriate local tax rate; and<br/>
<a id="pl.103.5"></a><var>103.5</var>    (2) multiplying the amount determined in clause (1) by the number of years the <br/>
<a id="pl.103.6"></a><var>103.6</var>land was in the program under this section. The current year's estimated market value as <br/>
<a id="pl.103.7"></a><var>103.7</var>determined by the assessor must not exceed the market value that would result if the <br/>
<a id="pl.103.8"></a><var>103.8</var>property was sold in an arms-length transaction and must not be greater than it would have <br/>
<a id="pl.103.9"></a><var>103.9</var>been had the actual bona fide sale price of the property been used in lieu of that market <br/>
<a id="pl.103.10"></a><var>103.10</var>value. The additional taxes must be extended against the property on the tax list for the <br/>
<a id="pl.103.11"></a><var>103.11</var>current year, except that interest or penalties must not be levied on these additional taxes if <br/>
<a id="pl.103.12"></a><var>103.12</var>timely paid. The additional tax under this subdivision must not be imposed on that portion <br/>
<a id="pl.103.13"></a><var>103.13</var>of the property which has actively been mined and has been removed from the program <br/>
<a id="pl.103.14"></a><var>103.14</var>based upon the supplemental affidavits filed under subdivision 8.<br/>
<a id="pl.103.15"></a><var>103.15</var>    Subd. 8. <b>Supplemental affidavits; mining activity on land.</b> When any portion <br/>
<a id="pl.103.16"></a><var>103.16</var>of the property begins to be actively mined, the owner must file a supplemental affidavit <br/>
<a id="pl.103.17"></a><var>103.17</var>within 60 days from the day any aggregate is removed stating the number of acres of the <br/>
<a id="pl.103.18"></a><var>103.18</var>property that is actively being mined. The acres actively being mined shall be (1) valued <br/>
<a id="pl.103.19"></a><var>103.19</var>and classified under section 273.13, subdivision 24, in the next subsequent assessment <br/>
<a id="pl.103.20"></a><var>103.20</var>year, and (2) removed from the aggregate resource preservation property tax program <br/>
<a id="pl.103.21"></a><var>103.21</var>under this section. The additional taxes under subdivision 7 must not be imposed on the <br/>
<a id="pl.103.22"></a><var>103.22</var>acres that are actively being mined and have been removed from the program under this <br/>
<a id="pl.103.23"></a><var>103.23</var>section. Copies of the original affidavit and all supplemental affidavits must be filed <br/>
<a id="pl.103.24"></a><var>103.24</var>with the county assessor, the local zoning administrator, and the Department of Natural <br/>
<a id="pl.103.25"></a><var>103.25</var>Resources, Division of Land and Minerals. A supplemental affidavit must be filed each <br/>
<a id="pl.103.26"></a><var>103.26</var>time a subsequent portion of the property is actively mined, provided that the minimum <br/>
<a id="pl.103.27"></a><var>103.27</var>acreage change is five acres, even if the actual mining activity constitutes less than five <br/>
<a id="pl.103.28"></a><var>103.28</var>acres. Failure to file the affidavits timely shall result in the property losing its valuation <br/>
<a id="pl.103.29"></a><var>103.29</var>deferment under this section, and additional taxes must be imposed as calculated under <br/>
<a id="pl.103.30"></a><var>103.30</var>subdivision 7.<br/>
<a id="pl.103.31"></a><var>103.31</var>    Subd. 9. <b>Lien.</b> The additional tax imposed by this section is a lien upon the property <br/>
<a id="pl.103.32"></a><var>103.32</var>assessed to the same extent and for the same duration as other taxes imposed upon <br/>
<a id="pl.103.33"></a><var>103.33</var>property within this state and, when collected, must be distributed in the manner provided <br/>
<a id="pl.103.34"></a><var>103.34</var>by law for the collection and distribution of other property taxes.<br/>
<a id="pl.104.1"></a><var>104.1</var>    Subd. 10. <b>Continuation of tax treatment upon sale.</b> When real property qualifying <br/>
<a id="pl.104.2"></a><var>104.2</var>under subdivision 2 is sold, additional taxes must not be extended against the property <br/>
<a id="pl.104.3"></a><var>104.3</var>if the property continues to qualify under subdivision 2, and the new owner files an <br/>
<a id="pl.104.4"></a><var>104.4</var>application with the assessor for continued deferment within 30 days after the sale.<br/>
<a id="pl.104.5"></a><var>104.5</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in 2009, payable <br/>
<a id="pl.104.6"></a><var>104.6</var>in 2010, and thereafter, except that for the 2009 assessment year, the application date <br/>
<a id="pl.104.7"></a><var>104.7</var>under subdivision 5 shall be September 1, 2009, and subdivision 6 is effective the day <br/>
<a id="pl.104.8"></a><var>104.8</var>following final enactment.<br/>
<br/>
<a id="bill.6.22.0"></a><a id="pl.104.9"></a><var>104.9</var>    Sec. 22. <b>[273.113] TAX CREDIT FOR PROPERTY IN PROPOSED BOVINE </b><br/>
<a id="pl.104.10"></a><var>104.10</var><b>TUBERCULOSIS MODIFIED ACCREDITED ZONE.</b><br/>
<a id="pl.104.11"></a><var>104.11</var>    Subdivision 1. <b>Definition.</b> For the purposes of this section, the following terms <br/>
<a id="pl.104.12"></a><var>104.12</var>have the meanings given to them:<br/>
<a id="pl.104.13"></a><var>104.13</var>    (1) "proposed bovine tuberculosis modified accredited zone" means the modified <br/>
<a id="pl.104.14"></a><var>104.14</var>accredited zone proposed by the Board of Animal Health under section 35.244; and<br/>
<a id="pl.104.15"></a><var>104.15</var>    (2) "located within" means that the herd is kept in the area for at least a part of <br/>
<a id="pl.104.16"></a><var>104.16</var>calendar year 2007.<br/>
<a id="pl.104.17"></a><var>104.17</var>    Subd. 2. <b>Eligibility; amount of credit.</b> Agricultural land classified under section <br/>
<a id="pl.104.18"></a><var>104.18</var>273.13, subdivision 23, located within a proposed bovine tuberculosis modified accredited <br/>
<a id="pl.104.19"></a><var>104.19</var>zone is eligible for a property tax credit equal to the property tax on the parcel where the <br/>
<a id="pl.104.20"></a><var>104.20</var>herd had been located, excluding any tax attributable to residential structures. To begin to <br/>
<a id="pl.104.21"></a><var>104.21</var>qualify for the tax credit, the owner shall file an application with the county by December <br/>
<a id="pl.104.22"></a><var>104.22</var>1 of the levy year. The credit must be given for each subsequent taxes payable year until <br/>
<a id="pl.104.23"></a><var>104.23</var>the credit terminates under subdivision 4. The assessor shall indicate the amount of the <br/>
<a id="pl.104.24"></a><var>104.24</var>property tax reduction on the property tax statement of each taxpayer receiving a credit <br/>
<a id="pl.104.25"></a><var>104.25</var>under this section. The credit paid pursuant to this section shall be deducted from the tax <br/>
<a id="pl.104.26"></a><var>104.26</var>due on the property as provided in section 273.1393.<br/>
<a id="pl.104.27"></a><var>104.27</var>    Subd. 3. <b>Reimbursement for lost revenue.</b> The county auditor shall certify to the <br/>
<a id="pl.104.28"></a><var>104.28</var>commissioner of revenue, as part of the abstracts of tax lists required to be filed with <br/>
<a id="pl.104.29"></a><var>104.29</var>the commissioner under section 275.29, the amount of tax lost to the county from the <br/>
<a id="pl.104.30"></a><var>104.30</var>property tax credit under subdivision 2. Any prior year adjustments must also be certified <br/>
<a id="pl.104.31"></a><var>104.31</var>in the abstracts of tax lists. The commissioner of revenue shall review the certifications to <br/>
<a id="pl.104.32"></a><var>104.32</var>determine their accuracy. The commissioner may make the changes in the certification <br/>
<a id="pl.104.33"></a><var>104.33</var>that are considered necessary or return a certification to the county auditor for corrections. <br/>
<a id="pl.104.34"></a><var>104.34</var>The commissioner shall reimburse each taxing district for the taxes lost. The payments <br/>
<a id="pl.105.1"></a><var>105.1</var>must be made at the time provided in section 473H.10 for payment to taxing jurisdictions <br/>
<a id="pl.105.2"></a><var>105.2</var>in the same proportion that the ad valorem tax is distributed. The amount necessary to <br/>
<a id="pl.105.3"></a><var>105.3</var>make the reimbursements under this section is annually appropriated from the general <br/>
<a id="pl.105.4"></a><var>105.4</var>fund to the commissioner of revenue.<br/>
<a id="pl.105.5"></a><var>105.5</var>    Subd. 4. <b>Termination of credit.</b> The credits provided under this section cease to be <br/>
<a id="pl.105.6"></a><var>105.6</var>available beginning with taxes payable in the year following the date when the Board of <br/>
<a id="pl.105.7"></a><var>105.7</var>Animal Health has certified that the state is free of bovine tuberculosis.<br/>
<br/>
<a id="bill.6.23.0"></a><a id="pl.105.8"></a><var>105.8</var>    Sec. 23. Minnesota Statutes 2006, section 273.121, as amended by Laws 2008, chapter <br/>
<a id="pl.105.9"></a><var>105.9</var>154, article 13, section 28, is amended to read:<br/>
<a id="pl.105.10"></a><var>105.10</var><b>273.121 VALUATION OF REAL PROPERTY, NOTICE. </b><br/>
<a id="pl.105.11"></a><var>105.11</var>    Subdivision 1. <b>Notice.</b> Any county assessor or city assessor having the powers of a <br/>
<a id="pl.105.12"></a><var>105.12</var>county assessor, valuing or classifying taxable real property shall in each year notify those <br/>
<a id="pl.105.13"></a><var>105.13</var>persons whose property is to be included on the assessment roll that year if the person's <br/>
<a id="pl.105.14"></a><var>105.14</var>address is known to the assessor, otherwise the occupant of the property. The notice shall <br/>
<a id="pl.105.15"></a><var>105.15</var>be in writing and shall be sent by ordinary mail at least ten days before the meeting of <br/>
<a id="pl.105.16"></a><var>105.16</var>the local board of appeal and equalization under section 
         <statute_ref>274.01</statute_ref> or the review process <br/>
<a id="pl.105.17"></a><var>105.17</var>established under section 
         <statute_ref>274.13, subdivision 1c</statute_ref>. Upon written request by the owner of the <br/>
<a id="pl.105.18"></a><var>105.18</var>property, the assessor may send the notice in electronic form or by electronic mail instead <br/>
<a id="pl.105.19"></a><var>105.19</var>of on paper or by ordinary mail. It shall contain: (1) the market value for the current and <br/>
<a id="pl.105.20"></a><var>105.20</var>prior assessment, (2) the limited market value under section 
         <statute_ref>273.11, subdivision 1a</statute_ref>, for <br/>
<a id="pl.105.21"></a><var>105.21</var>the current and prior assessment, (3) the qualifying amount of any improvements under <br/>
<a id="pl.105.22"></a><var>105.22</var>section 
         <statute_ref>273.11, subdivision 16</statute_ref>, for the current assessment, (4) the market value subject <br/>
<a id="pl.105.23"></a><var>105.23</var>to taxation after subtracting the amount of any qualifying improvements for the current <br/>
<a id="pl.105.24"></a><var>105.24</var>assessment, (5) the classification of the property for the current and prior assessment, <br/>
<a id="pl.105.25"></a><var>105.25</var>(6) a note that if the property is homestead and at least 45 years old, improvements <br/>
<a id="pl.105.26"></a><var>105.26</var>made to the property may be eligible for a valuation exclusion under section 
         <statute_ref>273.11, <br/>
<a id="pl.105.27"></a><var>105.27</var>subdivision 16
         </statute_ref>, (7) the assessor's office address, and (8) the dates, places, and times set for <br/>
<a id="pl.105.28"></a><var>105.28</var>the meetings of the local board of appeal and equalization, the review process established <br/>
<a id="pl.105.29"></a><var>105.29</var>under section 
         <statute_ref>274.13, subdivision 1c</statute_ref>, and the county board of appeal and equalization. <br/>
<a id="pl.105.30"></a><var>105.30</var>The commissioner of revenue shall specify the form of the notice. The assessor shall <br/>
<a id="pl.105.31"></a><var>105.31</var>attach to the assessment roll a statement that the notices required by this section have been <br/>
<a id="pl.105.32"></a><var>105.32</var>mailed. Any assessor who is not provided sufficient funds from the assessor's governing <br/>
<a id="pl.105.33"></a><var>105.33</var>body to provide such notices, may make application to the commissioner of revenue <br/>
<a id="pl.105.34"></a><var>105.34</var>to finance such notices. The commissioner of revenue shall conduct an investigation <br/>
<a id="pl.105.35"></a><var>105.35</var>and, if satisfied that the assessor does not have the necessary funds, issue a certification <br/>
<a id="pl.106.1"></a><var>106.1</var>to the commissioner of finance of the amount necessary to provide such notices. The <br/>
<a id="pl.106.2"></a><var>106.2</var>commissioner of finance shall issue a warrant for such amount and shall deduct such <br/>
<a id="pl.106.3"></a><var>106.3</var>amount from any state payment to such county or municipality. The necessary funds to <br/>
<a id="pl.106.4"></a><var>106.4</var>make such payments are hereby appropriated. Failure to receive the notice shall in no way <br/>
<a id="pl.106.5"></a><var>106.5</var>affect the validity of the assessment, the resulting tax, the procedures of any board of <br/>
<a id="pl.106.6"></a><var>106.6</var>review or equalization, or the enforcement of delinquent taxes by statutory means. <br/>
<a id="pl.106.7"></a><var>106.7</var>    Subd. 2. <b>Availability of data.</b> The notice must state where the information on <br/>
<a id="pl.106.8"></a><var>106.8</var>the property is available, the times when the information may be viewed by the public, <br/>
<a id="pl.106.9"></a><var>106.9</var>and the county's Web site address.<br/>
<a id="pl.106.10"></a><var>106.10</var><b>EFFECTIVE DATE.</b>This section is effective for notices prepared in 2009 and <br/>
<a id="pl.106.11"></a><var>106.11</var>thereafter.<br/>
<br/>
<a id="bill.6.24.0"></a><a id="pl.106.12"></a><var>106.12</var>    Sec. 24. Minnesota Statutes 2006, section 273.124, subdivision 1, is amended to read:<br/>
<a id="pl.106.13"></a><var>106.13</var>    Subdivision 1. <b>General rule.</b> (a) Residential real estate that is occupied and used <br/>
<a id="pl.106.14"></a><var>106.14</var>for the purposes of a homestead by its owner, who must be a Minnesota resident, is <br/>
<a id="pl.106.15"></a><var>106.15</var>a residential homestead.<br/>
<a id="pl.106.16"></a><var>106.16</var>    Agricultural land, as defined in section 
         <statute_ref>273.13, subdivision 23</statute_ref>, that is occupied and <br/>
<a id="pl.106.17"></a><var>106.17</var>used as a homestead by its owner, who must be a Minnesota resident, is an agricultural <br/>
<a id="pl.106.18"></a><var>106.18</var>homestead.<br/>
<a id="pl.106.19"></a><var>106.19</var>    Dates for establishment of a homestead and homestead treatment provided to <br/>
<a id="pl.106.20"></a><var>106.20</var>particular types of property are as provided in this section.<br/>
<a id="pl.106.21"></a><var>106.21</var>    Property held by a trustee under a trust is eligible for homestead classification if the <br/>
<a id="pl.106.22"></a><var>106.22</var>requirements under this chapter are satisfied.<br/>
<a id="pl.106.23"></a><var>106.23</var>    The assessor shall require proof, as provided in subdivision 13, of the facts upon <br/>
<a id="pl.106.24"></a><var>106.24</var>which classification as a homestead may be determined. Notwithstanding any other law, <br/>
<a id="pl.106.25"></a><var>106.25</var>the assessor may at any time require a homestead application to be filed in order to verify <br/>
<a id="pl.106.26"></a><var>106.26</var>that any property classified as a homestead continues to be eligible for homestead status. <br/>
<a id="pl.106.27"></a><var>106.27</var>Notwithstanding any other law to the contrary, the Department of Revenue may, upon <br/>
<a id="pl.106.28"></a><var>106.28</var>request from an assessor, verify whether an individual who is requesting or receiving <br/>
<a id="pl.106.29"></a><var>106.29</var>homestead classification has filed a Minnesota income tax return as a resident for the most <br/>
<a id="pl.106.30"></a><var>106.30</var>recent taxable year for which the information is available.<br/>
<a id="pl.106.31"></a><var>106.31</var>    When there is a name change or a transfer of homestead property, the assessor may <br/>
<a id="pl.106.32"></a><var>106.32</var>reclassify the property in the next assessment unless a homestead application is filed to <br/>
<a id="pl.106.33"></a><var>106.33</var>verify that the property continues to qualify for homestead classification.<br/>
<a id="pl.106.34"></a><var>106.34</var>    (b) For purposes of this section, homestead property shall include property which <br/>
<a id="pl.106.35"></a><var>106.35</var>is used for purposes of the homestead but is separated from the homestead by a road, <br/>
<a id="pl.107.1"></a><var>107.1</var>street, lot, waterway, or other similar intervening property. The term "used for purposes <br/>
<a id="pl.107.2"></a><var>107.2</var>of the homestead" shall include but not be limited to uses for gardens, garages, or other <br/>
<a id="pl.107.3"></a><var>107.3</var>outbuildings commonly associated with a homestead, but shall not include vacant land <br/>
<a id="pl.107.4"></a><var>107.4</var>held primarily for future development. In order to receive homestead treatment for <br/>
<a id="pl.107.5"></a><var>107.5</var>the noncontiguous property, the owner must use the property for the purposes of the <br/>
<a id="pl.107.6"></a><var>107.6</var>homestead, and must apply to the assessor, both by the deadlines given in subdivision <br/>
<a id="pl.107.7"></a><var>107.7</var>9. After initial qualification for the homestead treatment, additional applications for <br/>
<a id="pl.107.8"></a><var>107.8</var>subsequent years are not required.<br/>
<a id="pl.107.9"></a><var>107.9</var>    (c) Residential real estate that is occupied and used for purposes of a homestead by a <br/>
<a id="pl.107.10"></a><var>107.10</var>relative of the owner is a homestead but only to the extent of the homestead treatment <br/>
<a id="pl.107.11"></a><var>107.11</var>that would be provided if the related owner occupied the property. For purposes of this <br/>
<a id="pl.107.12"></a><var>107.12</var>paragraph and paragraph (g), "relative" means a parent, stepparent, child, stepchild, <br/>
<a id="pl.107.13"></a><var>107.13</var>grandparent, grandchild, brother, sister, uncle, aunt, nephew, or niece. This relationship <br/>
<a id="pl.107.14"></a><var>107.14</var>may be by blood or marriage. Property that has been classified as seasonal residential <br/>
<a id="pl.107.15"></a><var>107.15</var>recreational property at any time during which it has been owned by the current owner or <br/>
<a id="pl.107.16"></a><var>107.16</var>spouse of the current owner will not be reclassified as a homestead unless it is occupied as <br/>
<a id="pl.107.17"></a><var>107.17</var>a homestead by the owner; this prohibition also applies to property that, in the absence of <br/>
<a id="pl.107.18"></a><var>107.18</var>this paragraph, would have been classified as seasonal residential recreational property at <br/>
<a id="pl.107.19"></a><var>107.19</var>the time when the residence was constructed. Neither the related occupant nor the owner <br/>
<a id="pl.107.20"></a><var>107.20</var>of the property may claim a property tax refund under chapter 290A for a homestead <br/>
<a id="pl.107.21"></a><var>107.21</var>occupied by a relative. In the case of a residence located on agricultural land, only the <br/>
<a id="pl.107.22"></a><var>107.22</var>house, garage, and immediately surrounding one acre of land shall be classified as a <br/>
<a id="pl.107.23"></a><var>107.23</var>homestead under this paragraph, except as provided in paragraph (d).<br/>
<a id="pl.107.24"></a><var>107.24</var>    (d) Agricultural property that is occupied and used for purposes of a homestead by <br/>
<a id="pl.107.25"></a><var>107.25</var>a relative of the owner, is a homestead, only to the extent of the homestead treatment <br/>
<a id="pl.107.26"></a><var>107.26</var>that would be provided if the related owner occupied the property, and only if all of the <br/>
<a id="pl.107.27"></a><var>107.27</var>following criteria are met:<br/>
<a id="pl.107.28"></a><var>107.28</var>    (1) the relative who is occupying the agricultural property is a son, daughter, brother, <br/>
<a id="pl.107.29"></a><var>107.29</var>sister, grandson, granddaughter, father, or mother of the owner of the agricultural property <br/>
<a id="pl.107.30"></a><var>107.30</var>or a son, daughter, brother, sister, grandson, or granddaughter of the spouse of the owner <br/>
<a id="pl.107.31"></a><var>107.31</var>of the agricultural property;<br/>
<a id="pl.107.32"></a><var>107.32</var>    (2) the owner of the agricultural property must be a Minnesota resident;<br/>
<a id="pl.107.33"></a><var>107.33</var>    (3) the owner of the agricultural property must not receive homestead treatment on <br/>
<a id="pl.107.34"></a><var>107.34</var>any other agricultural property in Minnesota; and<br/>
<a id="pl.107.35"></a><var>107.35</var>    (4) the owner of the agricultural property is limited to only one agricultural <br/>
<a id="pl.107.36"></a><var>107.36</var>homestead per family under this paragraph.<br/>
<a id="pl.108.1"></a><var>108.1</var>    Neither the related occupant nor the owner of the property may claim a property <br/>
<a id="pl.108.2"></a><var>108.2</var>tax refund under chapter 290A for a homestead occupied by a relative qualifying under <br/>
<a id="pl.108.3"></a><var>108.3</var>this paragraph. For purposes of this paragraph, "agricultural property" means the house, <br/>
<a id="pl.108.4"></a><var>108.4</var>garage, other farm buildings and structures, and agricultural land.<br/>
<a id="pl.108.5"></a><var>108.5</var>    Application must be made to the assessor by the owner of the agricultural property to <br/>
<a id="pl.108.6"></a><var>108.6</var>receive homestead benefits under this paragraph. The assessor may require the necessary <br/>
<a id="pl.108.7"></a><var>108.7</var>proof that the requirements under this paragraph have been met.<br/>
<a id="pl.108.8"></a><var>108.8</var>    (e) In the case of property owned by a property owner who is married, the assessor <br/>
<a id="pl.108.9"></a><var>108.9</var>must not deny homestead treatment in whole or in part if only one of the spouses occupies <br/>
<a id="pl.108.10"></a><var>108.10</var>the property and the other spouse is absent due to: (1) marriage dissolution proceedings, <br/>
<a id="pl.108.11"></a><var>108.11</var>(2) legal separation, (3) employment or self-employment in another location, or (4) other <br/>
<a id="pl.108.12"></a><var>108.12</var>personal circumstances causing the spouses to live separately, not including an intent to <br/>
<a id="pl.108.13"></a><var>108.13</var>obtain two homestead classifications for property tax purposes. To qualify under clause <br/>
<a id="pl.108.14"></a><var>108.14</var>(3), the spouse's place of employment or self-employment must be at least 50 miles distant <br/>
<a id="pl.108.15"></a><var>108.15</var>from the other spouse's place of employment, and the homesteads must be at least 50 miles <br/>
<a id="pl.108.16"></a><var>108.16</var>distant from each other. Homestead treatment, in whole or in part, shall not be denied to <br/>
<a id="pl.108.17"></a><var>108.17</var>the owner's spouse who previously occupied the residence with the owner if the absence <br/>
<a id="pl.108.18"></a><var>108.18</var>of the owner is due to one of the exceptions provided in this paragraph.<br/>
<a id="pl.108.19"></a><var>108.19</var>    (f) The assessor must not deny homestead treatment in whole or in part if:<br/>
<a id="pl.108.20"></a><var>108.20</var>    (1) in the case of a property owner who is not married, the owner is absent due to <br/>
<a id="pl.108.21"></a><var>108.21</var>residence in a nursing home, boarding care facility, or an elderly assisted living facility <br/>
<a id="pl.108.22"></a><var>108.22</var>property as defined in section 
         <statute_ref>273.13, subdivision 25a</statute_ref>, and the property is not otherwise <br/>
<a id="pl.108.23"></a><var>108.23</var>occupied; or<br/>
<a id="pl.108.24"></a><var>108.24</var>    (2) in the case of a property owner who is married, the owner or the owner's spouse <br/>
<a id="pl.108.25"></a><var>108.25</var>or both are absent due to residence in a nursing home, boarding care facility, or an elderly <br/>
<a id="pl.108.26"></a><var>108.26</var>assisted living facility property as defined in section 
         <statute_ref>273.13, subdivision 25a</statute_ref>, and the <br/>
<a id="pl.108.27"></a><var>108.27</var>property is not occupied or is occupied only by the owner's spouse.<br/>
<a id="pl.108.28"></a><var>108.28</var>    (g) If an individual is purchasing property with the intent of claiming it as a <br/>
<a id="pl.108.29"></a><var>108.29</var>homestead and is required by the terms of the financing agreement to have a relative <br/>
<a id="pl.108.30"></a><var>108.30</var>shown on the deed as a co-owner, the assessor shall allow a full homestead classification. <br/>
<a id="pl.108.31"></a><var>108.31</var>This provision only applies to first-time purchasers, whether married or single, or to a <br/>
<a id="pl.108.32"></a><var>108.32</var>person who had previously been married and is purchasing as a single individual for the <br/>
<a id="pl.108.33"></a><var>108.33</var>first time. The application for homestead benefits must be on a form prescribed by the <br/>
<a id="pl.108.34"></a><var>108.34</var>commissioner and must contain the data necessary for the assessor to determine if full <br/>
<a id="pl.108.35"></a><var>108.35</var>homestead benefits are warranted.<br/>
<a id="pl.109.1"></a><var>109.1</var>    (h) If residential or agricultural real estate is occupied and used for purposes of a <br/>
<a id="pl.109.2"></a><var>109.2</var>homestead by a child of a deceased owner and the property is subject to jurisdiction of <br/>
<a id="pl.109.3"></a><var>109.3</var>probate court, the child shall receive relative homestead classification under paragraph (c) <br/>
<a id="pl.109.4"></a><var>109.4</var>or (d) to the same extent they would be entitled to it if the owner was still living, until <br/>
<a id="pl.109.5"></a><var>109.5</var>the probate is completed. For purposes of this paragraph, "child" includes a relationship <br/>
<a id="pl.109.6"></a><var>109.6</var>by blood or by marriage.<br/>
<a id="pl.109.7"></a><var>109.7</var>    (i) If a single-family home, duplex, or triplex classified as either residential <br/>
<a id="pl.109.8"></a><var>109.8</var>homestead or agricultural homestead is also used to provide licensed child care, the <br/>
<a id="pl.109.9"></a><var>109.9</var>portion of the property used for licensed child care must be classified as a part of the <br/>
<a id="pl.109.10"></a><var>109.10</var>homestead property.<br/>
<a id="pl.109.11"></a><var>109.11</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2009 and <br/>
<a id="pl.109.12"></a><var>109.12</var>thereafter.<br/>
<br/>
<a id="bill.6.25.0"></a><a id="pl.109.13"></a><var>109.13</var>    Sec. 25. Minnesota Statutes 2007 Supplement, section 273.124, subdivision 14, as <br/>
<a id="pl.109.14"></a><var>109.14</var>amended by Laws 2008, chapter 154, article 2, section 7, is amended to read:<br/>
<a id="pl.109.15"></a><var>109.15</var>    Subd. 14.  <b>Agricultural homesteads; special provisions. </b> (a) Real estate of less than <br/>
<a id="pl.109.16"></a><var>109.16</var>ten acres that is the homestead of its owner must be classified as class 2a under section <br/>
<statute_ref><a id="pl.109.17"></a><var>109.17</var>273.13, subdivision 23
         </statute_ref>, paragraph (a), if: <br/>
<a id="pl.109.18"></a><var>109.18</var>    (1) the parcel on which the house is located is contiguous on at least two sides to (i) <br/>
<a id="pl.109.19"></a><var>109.19</var>agricultural land, (ii) land owned or administered by the United States Fish and Wildlife <br/>
<a id="pl.109.20"></a><var>109.20</var>Service, or (iii) land administered by the Department of Natural Resources on which in <br/>
<a id="pl.109.21"></a><var>109.21</var>lieu taxes are paid under sections 
         <statute_ref>477A.11</statute_ref> to 
         <statute_ref>477A.14</statute_ref>; <br/>
<a id="pl.109.22"></a><var>109.22</var>    (2) its owner also owns a noncontiguous parcel of agricultural land that is at least <br/>
<a id="pl.109.23"></a><var>109.23</var>20 acres; <br/>
<a id="pl.109.24"></a><var>109.24</var>    (3) the noncontiguous land is located not farther than four townships or cities, or a <br/>
<a id="pl.109.25"></a><var>109.25</var>combination of townships or cities from the homestead; and <br/>
<a id="pl.109.26"></a><var>109.26</var>    (4) the agricultural use value of the noncontiguous land and farm buildings is equal <br/>
<a id="pl.109.27"></a><var>109.27</var>to at least 50 percent of the market value of the house, garage, and one acre of land. <br/>
<a id="pl.109.28"></a><var>109.28</var>    Homesteads initially classified as class 2a under the provisions of this paragraph shall <br/>
<a id="pl.109.29"></a><var>109.29</var>remain classified as class 2a, irrespective of subsequent changes in the use of adjoining <br/>
<a id="pl.109.30"></a><var>109.30</var>properties, as long as the homestead remains under the same ownership, the owner owns a <br/>
<a id="pl.109.31"></a><var>109.31</var>noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use <br/>
<a id="pl.109.32"></a><var>109.32</var>value qualifies under clause (4). Homestead classification under this paragraph is limited <br/>
<a id="pl.109.33"></a><var>109.33</var>to property that qualified under this paragraph for the 1998 assessment. <br/>
<a id="pl.109.34"></a><var>109.34</var>    (b)(i) Agricultural property shall be classified as the owner's homestead, to the same <br/>
<a id="pl.109.35"></a><var>109.35</var>extent as other agricultural homestead property, if all of the following criteria are met: <br/>
<a id="pl.110.1"></a><var>110.1</var>    (1) the property consists of at least 40 acres including undivided government lots <br/>
<a id="pl.110.2"></a><var>110.2</var>and correctional 40's; <br/>
<a id="pl.110.3"></a><var>110.3</var>    (2) the owner, the owner's spouse, the son or daughter of the owner or owner's <br/>
<a id="pl.110.4"></a><var>110.4</var>spouse, the brother or sister of the owner or owner's spouse, or the grandson or <br/>
<a id="pl.110.5"></a><var>110.5</var>granddaughter of the owner or the owner's spouse, is actively farming the agricultural <br/>
<a id="pl.110.6"></a><var>110.6</var>property, either on the person's own behalf as an individual or on behalf of a partnership <br/>
<a id="pl.110.7"></a><var>110.7</var>operating a family farm, family farm corporation, joint family farm venture, or limited <br/>
<a id="pl.110.8"></a><var>110.8</var>liability company of which the person is a partner, shareholder, or member; <br/>
<a id="pl.110.9"></a><var>110.9</var>    (3) both the owner of the agricultural property and the person who is actively <br/>
<a id="pl.110.10"></a><var>110.10</var>farming the agricultural property under clause (2), are Minnesota residents; <br/>
<a id="pl.110.11"></a><var>110.11</var>    (4) neither the owner nor the spouse of the owner claims another agricultural <br/>
<a id="pl.110.12"></a><var>110.12</var>homestead in Minnesota; and <br/>
<a id="pl.110.13"></a><var>110.13</var>    (5) neither the owner nor the person actively farming the property lives farther <br/>
<a id="pl.110.14"></a><var>110.14</var>than four townships or cities, or a combination of four townships or cities, from the <br/>
<a id="pl.110.15"></a><var>110.15</var>agricultural property, except that if the owner or the owner's spouse is required to live in <br/>
<a id="pl.110.16"></a><var>110.16</var>employer-provided housing, the owner or owner's spouse, whichever is actively farming <br/>
<a id="pl.110.17"></a><var>110.17</var>the agricultural property, may live more than four townships or cities, or combination of <br/>
<a id="pl.110.18"></a><var>110.18</var>four townships or cities from the agricultural property. <br/>
<a id="pl.110.19"></a><var>110.19</var>    The relationship under this paragraph may be either by blood or marriage. <br/>
<a id="pl.110.20"></a><var>110.20</var>    (ii) Real property held by a trustee under a trust is eligible for agricultural homestead <br/>
<a id="pl.110.21"></a><var>110.21</var>classification under this paragraph if the qualifications in clause (i) are met, except that <br/>
<a id="pl.110.22"></a><var>110.22</var>"owner" means the grantor of the trust. <br/>
<a id="pl.110.23"></a><var>110.23</var>    (iii) Property containing the residence of an owner who owns qualified property <br/>
<a id="pl.110.24"></a><var>110.24</var>under clause (i) shall be classified as part of the owner's agricultural homestead, if that <br/>
<a id="pl.110.25"></a><var>110.25</var>property is also used for noncommercial storage or drying of agricultural crops. <br/>
<a id="pl.110.26"></a><var>110.26</var>    (c) Noncontiguous land shall be included as part of a homestead under section <br/>
<statute_ref><a id="pl.110.27"></a><var>110.27</var>273.13, subdivision 23
         </statute_ref>, paragraph (a), only if the homestead is classified as class 2a <br/>
<a id="pl.110.28"></a><var>110.28</var>and the detached land is located in the same township or city, or not farther than four <br/>
<a id="pl.110.29"></a><var>110.29</var>townships or cities or combination thereof from the homestead. Any taxpayer of these <br/>
<a id="pl.110.30"></a><var>110.30</var>noncontiguous lands must notify the county assessor that the noncontiguous land is part of <br/>
<a id="pl.110.31"></a><var>110.31</var>the taxpayer's homestead, and, if the homestead is located in another county, the taxpayer <br/>
<a id="pl.110.32"></a><var>110.32</var>must also notify the assessor of the other county. <br/>
<a id="pl.110.33"></a><var>110.33</var>    (d) Agricultural land used for purposes of a homestead and actively farmed by a <br/>
<a id="pl.110.34"></a><var>110.34</var>person holding a vested remainder interest in it must be classified as a homestead under <br/>
<a id="pl.110.35"></a><var>110.35</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>, paragraph (a). If agricultural land is classified class 2a, <br/>
<a id="pl.110.36"></a><var>110.36</var>any other dwellings on the land used for purposes of a homestead by persons holding <br/>
<a id="pl.111.1"></a><var>111.1</var>vested remainder interests who are actively engaged in farming the property, and up to <br/>
<a id="pl.111.2"></a><var>111.2</var>one acre of the land surrounding each homestead and reasonably necessary for the use of <br/>
<a id="pl.111.3"></a><var>111.3</var>the dwelling as a home, must also be assessed class 2a. <br/>
<a id="pl.111.4"></a><var>111.4</var>    (e) Agricultural land and buildings that were class 2a homestead property under <br/>
<a id="pl.111.5"></a><var>111.5</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>, paragraph (a), for the 1997 assessment shall remain <br/>
<a id="pl.111.6"></a><var>111.6</var>classified as agricultural homesteads for subsequent assessments if: <br/>
<a id="pl.111.7"></a><var>111.7</var>    (1) the property owner abandoned the homestead dwelling located on the agricultural <br/>
<a id="pl.111.8"></a><var>111.8</var>homestead as a result of the April 1997 floods; <br/>
<a id="pl.111.9"></a><var>111.9</var>    (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, <br/>
<a id="pl.111.10"></a><var>111.10</var>or Wilkin; <br/>
<a id="pl.111.11"></a><var>111.11</var>    (3) the agricultural land and buildings remain under the same ownership for the <br/>
<a id="pl.111.12"></a><var>111.12</var>current assessment year as existed for the 1997 assessment year and continue to be used <br/>
<a id="pl.111.13"></a><var>111.13</var>for agricultural purposes; <br/>
<a id="pl.111.14"></a><var>111.14</var>    (4) the dwelling occupied by the owner is located in Minnesota and is within 30 <br/>
<a id="pl.111.15"></a><var>111.15</var>miles of one of the parcels of agricultural land that is owned by the taxpayer; and <br/>
<a id="pl.111.16"></a><var>111.16</var>    (5) the owner notifies the county assessor that the relocation was due to the 1997 <br/>
<a id="pl.111.17"></a><var>111.17</var>floods, and the owner furnishes the assessor any information deemed necessary by the <br/>
<a id="pl.111.18"></a><var>111.18</var>assessor in verifying the change in dwelling. Further notifications to the assessor are not <br/>
<a id="pl.111.19"></a><var>111.19</var>required if the property continues to meet all the requirements in this paragraph and any <br/>
<a id="pl.111.20"></a><var>111.20</var>dwellings on the agricultural land remain uninhabited. <br/>
<a id="pl.111.21"></a><var>111.21</var>    (f) Agricultural land and buildings that were class 2a homestead property under <br/>
<a id="pl.111.22"></a><var>111.22</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>, paragraph (a), for the 1998 assessment shall remain <br/>
<a id="pl.111.23"></a><var>111.23</var>classified agricultural homesteads for subsequent assessments if: <br/>
<a id="pl.111.24"></a><var>111.24</var>    (1) the property owner abandoned the homestead dwelling located on the agricultural <br/>
<a id="pl.111.25"></a><var>111.25</var>homestead as a result of damage caused by a March 29, 1998, tornado; <br/>
<a id="pl.111.26"></a><var>111.26</var>    (2) the property is located in the county of Blue Earth, Brown, Cottonwood, <br/>
<a id="pl.111.27"></a><var>111.27</var>LeSueur, Nicollet, Nobles, or Rice; <br/>
<a id="pl.111.28"></a><var>111.28</var>    (3) the agricultural land and buildings remain under the same ownership for the <br/>
<a id="pl.111.29"></a><var>111.29</var>current assessment year as existed for the 1998 assessment year; <br/>
<a id="pl.111.30"></a><var>111.30</var>    (4) the dwelling occupied by the owner is located in this state and is within 50 miles <br/>
<a id="pl.111.31"></a><var>111.31</var>of one of the parcels of agricultural land that is owned by the taxpayer; and <br/>
<a id="pl.111.32"></a><var>111.32</var>    (5) the owner notifies the county assessor that the relocation was due to a March 29, <br/>
<a id="pl.111.33"></a><var>111.33</var>1998, tornado, and the owner furnishes the assessor any information deemed necessary by <br/>
<a id="pl.111.34"></a><var>111.34</var>the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the <br/>
<a id="pl.111.35"></a><var>111.35</var>owner must notify the assessor by December 1, 1998. Further notifications to the assessor <br/>
<a id="pl.112.1"></a><var>112.1</var>are not required if the property continues to meet all the requirements in this paragraph <br/>
<a id="pl.112.2"></a><var>112.2</var>and any dwellings on the agricultural land remain uninhabited. <br/>
<a id="pl.112.3"></a><var>112.3</var>    (g) Agricultural property of a family farm corporation, joint family farm venture, <br/>
<a id="pl.112.4"></a><var>112.4</var>family farm limited liability company, or partnership operating a family farm as described <br/>
<a id="pl.112.5"></a><var>112.5</var>under subdivision 8 shall be classified homestead, to the same extent as other agricultural <br/>
<a id="pl.112.6"></a><var>112.6</var>homestead property, if all of the following criteria are met: <br/>
<a id="pl.112.7"></a><var>112.7</var>    (1) the property consists of at least 40 acres including undivided government lots <br/>
<a id="pl.112.8"></a><var>112.8</var>and correctional 40's; <br/>
<a id="pl.112.9"></a><var>112.9</var>    (2) a shareholder, member, or partner of that entity is actively farming the <br/>
<a id="pl.112.10"></a><var>112.10</var>agricultural property; <br/>
<a id="pl.112.11"></a><var>112.11</var>    (3) that shareholder, member, or partner who is actively farming the agricultural <br/>
<a id="pl.112.12"></a><var>112.12</var>property is a Minnesota resident; <br/>
<a id="pl.112.13"></a><var>112.13</var>    (4) neither that shareholder, member, or partner, nor the spouse of that shareholder, <br/>
<a id="pl.112.14"></a><var>112.14</var>member, or partner claims another agricultural homestead in Minnesota; and <br/>
<a id="pl.112.15"></a><var>112.15</var>    (5) that shareholder, member, or partner does not live farther than four townships or <br/>
<a id="pl.112.16"></a><var>112.16</var>cities, or a combination of four townships or cities, from the agricultural property. <br/>
<a id="pl.112.17"></a><var>112.17</var>    Homestead treatment applies under this paragraph for property leased to a family <br/>
<a id="pl.112.18"></a><var>112.18</var>farm corporation, joint farm venture, limited liability company, or partnership operating a <br/>
<a id="pl.112.19"></a><var>112.19</var>family farm if legal title to the property is in the name of an individual who is a member, <br/>
<a id="pl.112.20"></a><var>112.20</var>shareholder, or partner in the entity. <br/>
<a id="pl.112.21"></a><var>112.21</var>    (h) To be eligible for the special agricultural homestead under this subdivision, an <br/>
<a id="pl.112.22"></a><var>112.22</var>initial full application must be submitted to the county assessor where the property is <br/>
<a id="pl.112.23"></a><var>112.23</var>located. Owners and the persons who are actively farming the property shall be required <br/>
<a id="pl.112.24"></a><var>112.24</var>to complete only a one-page abbreviated version of the application in each subsequent <br/>
<a id="pl.112.25"></a><var>112.25</var>year provided that none of the following items have changed since the initial application: <br/>
<a id="pl.112.26"></a><var>112.26</var>    (1) the day-to-day operation, administration, and financial risks remain the same; <br/>
<a id="pl.112.27"></a><var>112.27</var>    (2) the owners and the persons actively farming the property continue to live within <br/>
<a id="pl.112.28"></a><var>112.28</var>the four townships or city criteria and are Minnesota residents; <br/>
<a id="pl.112.29"></a><var>112.29</var>    (3) the same operator of the agricultural property is listed with the Farm Service <br/>
<a id="pl.112.30"></a><var>112.30</var>Agency; <br/>
<a id="pl.112.31"></a><var>112.31</var>    (4) a Schedule F or equivalent income tax form was filed for the most recent year; <br/>
<a id="pl.112.32"></a><var>112.32</var>    (5) the property's acreage is unchanged; and <br/>
<a id="pl.112.33"></a><var>112.33</var>    (6) none of the property's acres have been enrolled in a federal or state farm program <br/>
<a id="pl.112.34"></a><var>112.34</var>since the initial application. <br/>
<a id="pl.112.35"></a><var>112.35</var>    The owners and any persons who are actively farming the property must include <br/>
<a id="pl.112.36"></a><var>112.36</var>the appropriate Social Security numbers, and sign and date the application. If any of the <br/>
<a id="pl.113.1"></a><var>113.1</var>specified information has changed since the full application was filed, the owner must <br/>
<a id="pl.113.2"></a><var>113.2</var>notify the assessor, and must complete a new application to determine if the property <br/>
<a id="pl.113.3"></a><var>113.3</var>continues to qualify for the special agricultural homestead. The commissioner of revenue <br/>
<a id="pl.113.4"></a><var>113.4</var>shall prepare a standard reapplication form for use by the assessors. <br/>
<a id="pl.113.5"></a><var>113.5</var>    (i) Agricultural land and buildings that were class 2a homestead property under <br/>
<a id="pl.113.6"></a><var>113.6</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>, paragraph (a), for the 2007 assessment shall remain <br/>
<a id="pl.113.7"></a><var>113.7</var>classified agricultural homesteads for subsequent assessments if: <br/>
<a id="pl.113.8"></a><var>113.8</var>    (1) the property owner abandoned the homestead dwelling located on the agricultural <br/>
<a id="pl.113.9"></a><var>113.9</var>homestead as a result of damage caused by the August 2007 floods; <br/>
<a id="pl.113.10"></a><var>113.10</var>    (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, <br/>
<a id="pl.113.11"></a><var>113.11</var>Steele, Wabasha, or Winona; <br/>
<a id="pl.113.12"></a><var>113.12</var>    (3) the agricultural land and buildings remain under the same ownership for the <br/>
<a id="pl.113.13"></a><var>113.13</var>current assessment year as existed for the 2007 assessment year; <br/>
<a id="pl.113.14"></a><var>113.14</var>    (4) the dwelling occupied by the owner is located in this state and is within 50 miles <br/>
<a id="pl.113.15"></a><var>113.15</var>of one of the parcels of agricultural land that is owned by the taxpayer; and <br/>
<a id="pl.113.16"></a><var>113.16</var>    (5) the owner notifies the county assessor that the relocation was due to the August <br/>
<a id="pl.113.17"></a><var>113.17</var>2007 floods, and the owner furnishes the assessor any information deemed necessary by <br/>
<a id="pl.113.18"></a><var>113.18</var>the assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the <br/>
<a id="pl.113.19"></a><var>113.19</var>owner must notify the assessor by December 1, 2008. Further notifications to the assessor <br/>
<a id="pl.113.20"></a><var>113.20</var>are not required if the property continues to meet all the requirements in this paragraph <br/>
<a id="pl.113.21"></a><var>113.21</var>and any dwellings on the agricultural land remain uninhabited. <br/>
<a id="pl.113.22"></a><var>113.22</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2009 and <br/>
<a id="pl.113.23"></a><var>113.23</var>thereafter.<br/>
<br/>
<a id="bill.6.26.0"></a><a id="pl.113.24"></a><var>113.24</var>    Sec. 26. Minnesota Statutes 2006, section 273.13, subdivision 23, as amended by Laws <br/>
<a id="pl.113.25"></a><var>113.25</var>2008, chapter 154, article 2, section 12, is amended to read:<br/>
<a id="pl.113.26"></a><var>113.26</var>    Subd. 23.  <b>Class 2.</b> (a) Class 2a property is agricultural land including any <br/>
<a id="pl.113.27"></a><var>113.27</var>improvements An agricultural homestead consists of class 2a agricultural land that is <br/>
<a id="pl.113.28"></a><var>113.28</var>homesteaded, along with any class 2b rural vacant land that is contiguous to the class <br/>
<a id="pl.113.29"></a><var>113.29</var>2a land under the same ownership. The market value of the house and garage and <br/>
<a id="pl.113.30"></a><var>113.30</var>immediately surrounding one acre of land has the same class rates as class 1a or 1b <br/>
<a id="pl.113.31"></a><var>113.31</var>property under subdivision 22. The value of the remaining land including improvements <br/>
<a id="pl.113.32"></a><var>113.32</var>up to the first tier valuation limit of agricultural homestead property has a net class rate of <br/>
<a id="pl.113.33"></a><var>113.33</var>0.55 0.5 percent of market value. The remaining property over the first tier has a class rate <br/>
<a id="pl.113.34"></a><var>113.34</var>of one percent of market value. For purposes of this subdivision, the "first tier valuation <br/>
<a id="pl.114.1"></a><var>114.1</var>limit of agricultural homestead property" and "first tier" means the limit certified under <br/>
<a id="pl.114.2"></a><var>114.2</var>section 
         <statute_ref>273.11</statute_ref>, subdivision 23. <br/>
<a id="pl.114.3"></a><var>114.3</var>    (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that <br/>
<a id="pl.114.4"></a><var>114.4</var>are agricultural land and buildings. Class 2a property has a net class rate of one percent of <br/>
<a id="pl.114.5"></a><var>114.5</var>market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a <br/>
<a id="pl.114.6"></a><var>114.6</var>property may contain property that would otherwise be classified as 2b, including but not <br/>
<a id="pl.114.7"></a><var>114.7</var>limited to sloughs, wooded wind shelters, acreage abutting ditches, and other similar land <br/>
<a id="pl.114.8"></a><var>114.8</var>impractical for the assessor to value separately from the rest of the property.<br/>
<a id="pl.114.9"></a><var>114.9</var>    An assessor may classify the part of a parcel described in this subdivision that is used <br/>
<a id="pl.114.10"></a><var>114.10</var>for agricultural purposes as class 2a and the remainder in the class appropriate to its use.<br/>
<a id="pl.114.11"></a><var>114.11</var>    (c) Class 2b property is (1) rural vacant land consists of parcels of property, <br/>
<a id="pl.114.12"></a><var>114.12</var>or portions thereof, that are unplatted  real estate, rural in character and not used for <br/>
<a id="pl.114.13"></a><var>114.13</var>agricultural purposes, including land used exclusively for growing trees for timber, <br/>
<a id="pl.114.14"></a><var>114.14</var>lumber, and wood and wood products; (2) real estate, that is not improved with a structure <br/>
<a id="pl.114.15"></a><var>114.15</var>and is used exclusively for growing trees for timber, lumber, and wood and wood products, <br/>
<a id="pl.114.16"></a><var>114.16</var>if the owner has participated or is participating in a cost-sharing program for afforestation, <br/>
<a id="pl.114.17"></a><var>114.17</var>reforestation, or timber stand improvement on that particular property, administered or <br/>
<a id="pl.114.18"></a><var>114.18</var>coordinated by the commissioner of natural resources; (3) real estate that is nonhomestead <br/>
<a id="pl.114.19"></a><var>114.19</var>agricultural land; or (4) a landing area or public access area of a privately owned public <br/>
<a id="pl.114.20"></a><var>114.20</var>use airport. The presence of a minor, ancillary nonresidential structure as defined by the <br/>
<a id="pl.114.21"></a><var>114.21</var>commissioner of revenue does not disqualify the property from classification under this <br/>
<a id="pl.114.22"></a><var>114.22</var>paragraph. Any parcel of 20 acres or more improved with a structure that is not a minor, <br/>
<a id="pl.114.23"></a><var>114.23</var>ancillary nonresidential structure must be split-classified, and ten acres must be assigned <br/>
<a id="pl.114.24"></a><var>114.24</var>to the split parcel containing the structure. Class 2b property has a net class rate of one <br/>
<a id="pl.114.25"></a><var>114.25</var>percent of market value, except that unplatted property described in clause (1) or (2) has <br/>
<a id="pl.114.26"></a><var>114.26</var>a net class rate of .65 percent if it consists unless it is part of an agricultural homestead <br/>
<a id="pl.114.27"></a><var>114.27</var>under paragraph (a), or qualifies as class 2c under paragraph (d).<br/>
<a id="pl.114.28"></a><var>114.28</var>    (d) Class 2c managed forest land consists  of no less than ten 20 and no more than <br/>
<a id="pl.114.29"></a><var>114.29</var>1,920 acres and statewide per taxpayer that is being managed under a forest management <br/>
<a id="pl.114.30"></a><var>114.30</var>plan that meets the requirements of chapter 290C, but is not enrolled in the sustainable <br/>
<a id="pl.114.31"></a><var>114.31</var>forest resource management incentive program. It has a class rate of .65 percent, provided <br/>
<a id="pl.114.32"></a><var>114.32</var>that the owner of the property must apply to the assessor annually to receive the reduced <br/>
<a id="pl.114.33"></a><var>114.33</var>class rate and provide the information required by the assessor to verify that the property <br/>
<a id="pl.114.34"></a><var>114.34</var>qualifies for the reduced rate. The commissioner of natural resources must concur that the <br/>
<a id="pl.114.35"></a><var>114.35</var>land is qualified. The commissioner of natural resources shall annually provide county <br/>
<a id="pl.114.36"></a><var>114.36</var>assessors verification information on a timely basis.<br/>
<a id="pl.115.1"></a><var>115.1</var>    (c) (e) Agricultural land as used in this section means contiguous acreage of ten <br/>
<a id="pl.115.2"></a><var>115.2</var>acres or more, used during the preceding year for agricultural purposes. "Agricultural <br/>
<a id="pl.115.3"></a><var>115.3</var>purposes" as used in this section means the raising or, cultivation, drying, or storage of <br/>
<a id="pl.115.4"></a><var>115.4</var>agricultural products for sale, or the storage of machinery or equipment used in support <br/>
<a id="pl.115.5"></a><var>115.5</var>of agricultural production by the same farm entity. For a property to be classified as <br/>
<a id="pl.115.6"></a><var>115.6</var>agricultural based only on the drying or storage of agricultural products, the products <br/>
<a id="pl.115.7"></a><var>115.7</var>being dried or stored must have been produced by the same farm entity as the entity <br/>
<a id="pl.115.8"></a><var>115.8</var>operating the drying or storage facility. "Agricultural purposes" also includes enrollment <br/>
<a id="pl.115.9"></a><var>115.9</var>in the Reinvest in Minnesota program under sections 
         <statute_ref>103F.501</statute_ref> to 
         <statute_ref>103F.535</statute_ref> or the federal <br/>
<a id="pl.115.10"></a><var>115.10</var>Conservation Reserve Program as contained in Public Law 99-198 or a similar state <br/>
<a id="pl.115.11"></a><var>115.11</var>or federal conservation program if the property was classified as agricultural (i) under <br/>
<a id="pl.115.12"></a><var>115.12</var>this subdivision for the assessment year 2002 or (ii) in the year prior to its enrollment. <br/>
<a id="pl.115.13"></a><var>115.13</var>Contiguous acreage on the same parcel, or contiguous acreage on an immediately adjacent <br/>
<a id="pl.115.14"></a><var>115.14</var>parcel under the same ownership, may also qualify as agricultural land, but only if it <br/>
<a id="pl.115.15"></a><var>115.15</var>is pasture, timber, waste, unusable wild land, or land included in state or federal farm <br/>
<a id="pl.115.16"></a><var>115.16</var>programs. Agricultural classification for property shall be determined excluding the <br/>
<a id="pl.115.17"></a><var>115.17</var>house, garage, and immediately surrounding one acre of land, and shall not be based <br/>
<a id="pl.115.18"></a><var>115.18</var>upon the market value of any residential structures on the parcel or contiguous parcels <br/>
<a id="pl.115.19"></a><var>115.19</var>under the same ownership. <br/>
<a id="pl.115.20"></a><var>115.20</var>    (d) (f) Real estate of less than ten acres, excluding the house, garage, and <br/>
<a id="pl.115.21"></a><var>115.21</var>immediately surrounding one acre of land, of less than ten acres which is exclusively and <br/>
<a id="pl.115.22"></a><var>115.22</var> or intensively used for raising or cultivating agricultural products, shall be considered as <br/>
<a id="pl.115.23"></a><var>115.23</var>agricultural land. To qualify under this paragraph, property that includes a residential <br/>
<a id="pl.115.24"></a><var>115.24</var>structure must be used intensively for one of the following purposes:<br/>
<a id="pl.115.25"></a><var>115.25</var>    (i) for drying or storage of grain or storage of machinery or equipment used to <br/>
<a id="pl.115.26"></a><var>115.26</var>support agricultural activities on other parcels of property operated by the same farming <br/>
<a id="pl.115.27"></a><var>115.27</var>entity;<br/>
<a id="pl.115.28"></a><var>115.28</var>    (ii) as a nursery, provided that only those acres used to produce nursery stock are <br/>
<a id="pl.115.29"></a><var>115.29</var>considered agricultural land;<br/>
<a id="pl.115.30"></a><var>115.30</var>    (iii) for livestock or poultry confinement, provided that land that is used only for <br/>
<a id="pl.115.31"></a><var>115.31</var>pasturing and grazing does not qualify; or<br/>
<a id="pl.115.32"></a><var>115.32</var>    (iv) for market farming; for purposes of this paragraph, "market farming" means the <br/>
<a id="pl.115.33"></a><var>115.33</var>cultivation of one or more fruits or vegetables or production of animal or other agricultural <br/>
<a id="pl.115.34"></a><var>115.34</var>products for sale to local markets by the farmer or an organization with which the farmer <br/>
<a id="pl.115.35"></a><var>115.35</var>is affiliated. <br/>
<a id="pl.116.1"></a><var>116.1</var>    (g) Land shall be classified as agricultural even if all or a portion of the agricultural <br/>
<a id="pl.116.2"></a><var>116.2</var>use of that property is the leasing to, or use by another person for agricultural purposes. <br/>
<a id="pl.116.3"></a><var>116.3</var>    Classification under this subdivision is not determinative for qualifying under <br/>
<a id="pl.116.4"></a><var>116.4</var>section 
         <statute_ref>273.111</statute_ref>. <br/>
<a id="pl.116.5"></a><var>116.5</var>    (h) The property classification under this section supersedes, for property tax <br/>
<a id="pl.116.6"></a><var>116.6</var>purposes only, any locally administered agricultural policies or land use restrictions that <br/>
<a id="pl.116.7"></a><var>116.7</var>define minimum or maximum farm acreage. <br/>
<a id="pl.116.8"></a><var>116.8</var>    (e) (i) The term "agricultural products" as used in this subdivision includes <br/>
<a id="pl.116.9"></a><var>116.9</var>production for sale of: <br/>
<a id="pl.116.10"></a><var>116.10</var>    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing <br/>
<a id="pl.116.11"></a><var>116.11</var>animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, <br/>
<a id="pl.116.12"></a><var>116.12</var>bees, and apiary products by the owner; <br/>
<a id="pl.116.13"></a><var>116.13</var>    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned <br/>
<a id="pl.116.14"></a><var>116.14</var>for agricultural use; <br/>
<a id="pl.116.15"></a><var>116.15</var>    (3) the commercial boarding of horses if the boarding is done in conjunction with <br/>
<a id="pl.116.16"></a><var>116.16</var>raising or cultivating agricultural products as defined in clause (1); <br/>
<a id="pl.116.17"></a><var>116.17</var>    (4) property which is owned and operated by nonprofit organizations used for <br/>
<a id="pl.116.18"></a><var>116.18</var>equestrian activities, excluding racing; <br/>
<a id="pl.116.19"></a><var>116.19</var>    (5) game birds and waterfowl bred and raised for use on a shooting preserve licensed <br/>
<a id="pl.116.20"></a><var>116.20</var>under section 
         <statute_ref>97A.115</statute_ref>; <br/>
<a id="pl.116.21"></a><var>116.21</var>    (6) insects primarily bred to be used as food for animals; <br/>
<a id="pl.116.22"></a><var>116.22</var>    (7) trees, grown for sale as a crop, including short rotation woody crops, and not <br/>
<a id="pl.116.23"></a><var>116.23</var>sold for timber, lumber, wood, or wood products; and <br/>
<a id="pl.116.24"></a><var>116.24</var>    (8) maple syrup taken from trees grown by a person licensed by the Minnesota <br/>
<a id="pl.116.25"></a><var>116.25</var>Department of Agriculture under chapter 28A as a food processor. <br/>
<a id="pl.116.26"></a><var>116.26</var>    (f) (j) If a parcel used for agricultural purposes is also used for commercial or <br/>
<a id="pl.116.27"></a><var>116.27</var>industrial purposes, including but not limited to: <br/>
<a id="pl.116.28"></a><var>116.28</var>    (1) wholesale and retail sales; <br/>
<a id="pl.116.29"></a><var>116.29</var>    (2) processing of raw agricultural products or other goods; <br/>
<a id="pl.116.30"></a><var>116.30</var>    (3) warehousing or storage of processed goods; and <br/>
<a id="pl.116.31"></a><var>116.31</var>    (4) office facilities for the support of the activities enumerated in clauses (1), (2), <br/>
<a id="pl.116.32"></a><var>116.32</var>and (3), <br/>
<a id="pl.116.33"></a><var>116.33</var>the assessor shall classify the part of the parcel used for agricultural purposes as class <br/>
<a id="pl.116.34"></a><var>116.34</var>1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its <br/>
<a id="pl.116.35"></a><var>116.35</var>use. The grading, sorting, and packaging of raw agricultural products for first sale is <br/>
<a id="pl.116.36"></a><var>116.36</var>considered an agricultural purpose. A greenhouse or other building where horticultural <br/>
<a id="pl.117.1"></a><var>117.1</var>or nursery products are grown that is also used for the conduct of retail sales must be <br/>
<a id="pl.117.2"></a><var>117.2</var>classified as agricultural if it is primarily used for the growing of horticultural or nursery <br/>
<a id="pl.117.3"></a><var>117.3</var>products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of <br/>
<a id="pl.117.4"></a><var>117.4</var>those products. Use of a greenhouse or building only for the display of already grown <br/>
<a id="pl.117.5"></a><var>117.5</var>horticultural or nursery products does not qualify as an agricultural purpose. <br/>
<a id="pl.117.6"></a><var>117.6</var>    The assessor shall determine and list separately on the records the market value of <br/>
<a id="pl.117.7"></a><var>117.7</var>the homestead dwelling and the one acre of land on which that dwelling is located. If any <br/>
<a id="pl.117.8"></a><var>117.8</var>farm buildings or structures are located on this homesteaded acre of land, their market <br/>
<a id="pl.117.9"></a><var>117.9</var>value shall not be included in this separate determination. <br/>
<a id="pl.117.10"></a><var>117.10</var>    (g) (k) Class 2d airport landing area consists of a landing area or public access area <br/>
<a id="pl.117.11"></a><var>117.11</var>of a privately owned public use airport. It has a class rate of one percent of market value. <br/>
<a id="pl.117.12"></a><var>117.12</var>To qualify for classification under this paragraph (b), clause (4), a privately owned public <br/>
<a id="pl.117.13"></a><var>117.13</var>use airport must be licensed as a public airport under section 
         <statute_ref>360.018</statute_ref>. For purposes of this <br/>
<a id="pl.117.14"></a><var>117.14</var>paragraph (b), clause (4), "landing area" means that part of a privately owned public use <br/>
<a id="pl.117.15"></a><var>117.15</var>airport properly cleared, regularly maintained, and made available to the public for use by <br/>
<a id="pl.117.16"></a><var>117.16</var>aircraft and includes runways, taxiways, aprons, and sites upon which are situated landing <br/>
<a id="pl.117.17"></a><var>117.17</var>or navigational aids. A landing area also includes land underlying both the primary surface <br/>
<a id="pl.117.18"></a><var>117.18</var>and the approach surfaces that comply with all of the following: <br/>
<a id="pl.117.19"></a><var>117.19</var>    (i) the land is properly cleared and regularly maintained for the primary purposes of <br/>
<a id="pl.117.20"></a><var>117.20</var>the landing, taking off, and taxiing of aircraft; but that portion of the land that contains <br/>
<a id="pl.117.21"></a><var>117.21</var>facilities for servicing, repair, or maintenance of aircraft is not included as a landing area; <br/>
<a id="pl.117.22"></a><var>117.22</var>    (ii) the land is part of the airport property; and <br/>
<a id="pl.117.23"></a><var>117.23</var>    (iii) the land is not used for commercial or residential purposes. <br/>
<a id="pl.117.24"></a><var>117.24</var>The land contained in a landing area under this paragraph (b), clause (4), must be described <br/>
<a id="pl.117.25"></a><var>117.25</var>and certified by the commissioner of transportation. The certification is effective until it <br/>
<a id="pl.117.26"></a><var>117.26</var>is modified, or until the airport or landing area no longer meets the requirements of this <br/>
<a id="pl.117.27"></a><var>117.27</var>paragraph (b), clause (4). For purposes of this paragraph (b), clause (4), "public access <br/>
<a id="pl.117.28"></a><var>117.28</var>area" means property used as an aircraft parking ramp, apron, or storage hangar, or an <br/>
<a id="pl.117.29"></a><var>117.29</var>arrival and departure building in connection with the airport. <br/>
<a id="pl.117.30"></a><var>117.30</var>    (l) Class 2e consists of land with a commercial aggregate deposit that is not actively <br/>
<a id="pl.117.31"></a><var>117.31</var>being mined and is not otherwise classified as class 2a or 2b. It has a class rate of one <br/>
<a id="pl.117.32"></a><var>117.32</var>percent of market value. To qualify for classification under this paragraph, the property <br/>
<a id="pl.117.33"></a><var>117.33</var>must be at least ten contiguous acres in size and the owner of the property must record with <br/>
<a id="pl.117.34"></a><var>117.34</var>the county recorder of the county in which the property is located an affidavit containing:<br/>
<a id="pl.117.35"></a><var>117.35</var>    (1) a legal description of the property;<br/>
<a id="pl.118.1"></a><var>118.1</var>    (2) a disclosure that the property contains a commercial aggregate deposit that is not <br/>
<a id="pl.118.2"></a><var>118.2</var>actively being mined but is present on the entire parcel enrolled;<br/>
<a id="pl.118.3"></a><var>118.3</var>    (3) documentation that the conditional use under the county or local zoning <br/>
<a id="pl.118.4"></a><var>118.4</var>ordinance of this property is for mining; and<br/>
<a id="pl.118.5"></a><var>118.5</var>    (4) documentation that a permit has been issued by the local unit of government <br/>
<a id="pl.118.6"></a><var>118.6</var>or the mining activity is allowed under local ordinance. The disclosure must include a <br/>
<a id="pl.118.7"></a><var>118.7</var>statement from a registered professional geologist, engineer, or soil scientist delineating <br/>
<a id="pl.118.8"></a><var>118.8</var>the deposit and certifying that it is a commercial aggregate deposit.<br/>
<a id="pl.118.9"></a><var>118.9</var>    For purposes of this section and section 273.1115, "commercial aggregate deposit" <br/>
<a id="pl.118.10"></a><var>118.10</var>means a deposit that will yield crushed stone or sand and gravel that is suitable for use <br/>
<a id="pl.118.11"></a><var>118.11</var>as a construction aggregate; and "actively mined" means the removal of top soil and <br/>
<a id="pl.118.12"></a><var>118.12</var>overburden in preparation for excavation or excavation of a commercial deposit.<br/>
<a id="pl.118.13"></a><var>118.13</var>    (m) When any portion of the property under this subdivision or subdivision 22 <br/>
<a id="pl.118.14"></a><var>118.14</var>begins to be actively mined, the owner must file a supplemental affidavit within 60 days <br/>
<a id="pl.118.15"></a><var>118.15</var>from the day any aggregate is removed stating the number of acres of the property that is <br/>
<a id="pl.118.16"></a><var>118.16</var>actively being mined. The acres actively being mined must be (1) valued and classified <br/>
<a id="pl.118.17"></a><var>118.17</var>under subdivision 24 in the next subsequent assessment year, and (2) removed from the <br/>
<a id="pl.118.18"></a><var>118.18</var>aggregate resource preservation property tax program under section 273.1115, if the <br/>
<a id="pl.118.19"></a><var>118.19</var>land was enrolled in that program. Copies of the original affidavit and all supplemental <br/>
<a id="pl.118.20"></a><var>118.20</var>affidavits must be filed with the county assessor, the local zoning administrator, and the <br/>
<a id="pl.118.21"></a><var>118.21</var>Department of Natural Resources, Division of Land and Minerals. A supplemental <br/>
<a id="pl.118.22"></a><var>118.22</var>affidavit must be filed each time a subsequent portion of the property is actively mined, <br/>
<a id="pl.118.23"></a><var>118.23</var>provided that the minimum acreage change is five acres, even if the actual mining activity <br/>
<a id="pl.118.24"></a><var>118.24</var>constitutes less than five acres.<br/>
<a id="pl.118.25"></a><var>118.25</var><b>EFFECTIVE DATE.</b>The portions of this section reducing the agricultural class <br/>
<a id="pl.118.26"></a><var>118.26</var>rate, expanding the definition of "agricultural purposes" in paragraph (e) and "agricultural <br/>
<a id="pl.118.27"></a><var>118.27</var>products" in paragraph (h), and relating to managed forest land in paragraph (d), are <br/>
<a id="pl.118.28"></a><var>118.28</var>effective for taxes payable in 2009 and thereafter. The remainder of the section is effective <br/>
<a id="pl.118.29"></a><var>118.29</var>for taxes payable in 2010 and thereafter.<br/>
<br/>
<a id="bill.6.27.0"></a><a id="pl.118.30"></a><var>118.30</var>    Sec. 27. Minnesota Statutes 2006, section 273.13, subdivision 25, as amended by Laws <br/>
<a id="pl.118.31"></a><var>118.31</var>2008, chapter 154, article 2, section 13, is amended to read:<br/>
<a id="pl.118.32"></a><var>118.32</var>    Subd. 25.  <b>Class 4.</b> (a) Class 4a is residential real estate containing four or more <br/>
<a id="pl.118.33"></a><var>118.33</var>units and used or held for use by the owner or by the tenants or lessees of the owner <br/>
<a id="pl.118.34"></a><var>118.34</var>as a residence for rental periods of 30 days or more, excluding property qualifying for <br/>
<a id="pl.118.35"></a><var>118.35</var>class 4d. Class 4a also includes hospitals licensed under sections 
         <statute_ref>144.50</statute_ref> to 
         <statute_ref>144.56</statute_ref>, other <br/>
<a id="pl.119.1"></a><var>119.1</var>than hospitals exempt under section 
         <statute_ref>272.02</statute_ref>, and contiguous property used for hospital <br/>
<a id="pl.119.2"></a><var>119.2</var>purposes, without regard to whether the property has been platted or subdivided. The <br/>
<a id="pl.119.3"></a><var>119.3</var>market value of class 4a property has a class rate of 1.25 percent. <br/>
<a id="pl.119.4"></a><var>119.4</var>    (b) Class 4b includes: <br/>
<a id="pl.119.5"></a><var>119.5</var>    (1) residential real estate containing less than four units that does not qualify as class <br/>
<a id="pl.119.6"></a><var>119.6</var>4bb, other than seasonal residential recreational property; <br/>
<a id="pl.119.7"></a><var>119.7</var>    (2) manufactured homes not classified under any other provision; <br/>
<a id="pl.119.8"></a><var>119.8</var>    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead <br/>
<a id="pl.119.9"></a><var>119.9</var>farm classified under subdivision 23, paragraph (b) containing two or three units; and <br/>
<a id="pl.119.10"></a><var>119.10</var>    (4) unimproved property that is classified residential as determined under subdivision <br/>
<a id="pl.119.11"></a><var>119.11</var>33. <br/>
<a id="pl.119.12"></a><var>119.12</var>    The market value of class 4b property has a class rate of 1.25 percent. <br/>
<a id="pl.119.13"></a><var>119.13</var>    (c) Class 4bb includes: <br/>
<a id="pl.119.14"></a><var>119.14</var>    (1) nonhomestead residential real estate containing one unit, other than seasonal <br/>
<a id="pl.119.15"></a><var>119.15</var>residential recreational property; and <br/>
<a id="pl.119.16"></a><var>119.16</var>    (2) a single family dwelling, garage, and surrounding one acre of property on a <br/>
<a id="pl.119.17"></a><var>119.17</var>nonhomestead farm classified under subdivision 23, paragraph (b). <br/>
<a id="pl.119.18"></a><var>119.18</var>    Class 4bb property has the same class rates as class 1a property under subdivision 22. <br/>
<a id="pl.119.19"></a><var>119.19</var>    Property that has been classified as seasonal residential recreational property at <br/>
<a id="pl.119.20"></a><var>119.20</var>any time during which it has been owned by the current owner or spouse of the current <br/>
<a id="pl.119.21"></a><var>119.21</var>owner does not qualify for class 4bb. <br/>
<a id="pl.119.22"></a><var>119.22</var>    (d) Class 4c property includes: <br/>
<a id="pl.119.23"></a><var>119.23</var>    (1) except as provided in subdivision 22, paragraph (c), or subdivision 23, paragraph <br/>
<a id="pl.119.24"></a><var>119.24</var>(b), clause (1), real and personal property devoted to temporary and seasonal residential <br/>
<a id="pl.119.25"></a><var>119.25</var>occupancy for recreation purposes, including real and personal property devoted to <br/>
<a id="pl.119.26"></a><var>119.26</var>temporary and seasonal residential occupancy for recreation purposes and not devoted to <br/>
<a id="pl.119.27"></a><var>119.27</var>commercial purposes for more than 250 days in the year preceding the year of assessment. <br/>
<a id="pl.119.28"></a><var>119.28</var>For purposes of this clause, property is devoted to a commercial purpose on a specific <br/>
<a id="pl.119.29"></a><var>119.29</var>day if any portion of the property is used for residential occupancy, and a fee is charged <br/>
<a id="pl.119.30"></a><var>119.30</var>for residential occupancy. Class 4c property must contain three or more rental units. A <br/>
<a id="pl.119.31"></a><var>119.31</var>"rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual <br/>
<a id="pl.119.32"></a><var>119.32</var>camping site equipped with water and electrical hookups for recreational vehicles. Class <br/>
<a id="pl.119.33"></a><var>119.33</var>4c property must provide recreational activities such as renting ice fishing houses, boats <br/>
<a id="pl.119.34"></a><var>119.34</var>and motors, snowmobiles, downhill or cross-country ski equipment; provide marina <br/>
<a id="pl.119.35"></a><var>119.35</var>services, launch services, or guide services; or sell bait and fishing tackle. A camping <br/>
<a id="pl.119.36"></a><var>119.36</var>pad offered for rent by a property that otherwise qualifies for class 4c is also class 4c <br/>
<a id="pl.120.1"></a><var>120.1</var>regardless of the term of the rental agreement, as long as the use of the camping pad <br/>
<a id="pl.120.2"></a><var>120.2</var>does not exceed 250 days. In order for a property to be classified as class 4c, seasonal <br/>
<a id="pl.120.3"></a><var>120.3</var>residential recreational for commercial purposes under this clause, at least 40 percent of <br/>
<a id="pl.120.4"></a><var>120.4</var>the annual gross lodging receipts related to the property must be from business conducted <br/>
<a id="pl.120.5"></a><var>120.5</var>during 90 consecutive days and either (i) at least 60 percent of all paid bookings by <br/>
<a id="pl.120.6"></a><var>120.6</var>lodging guests during the year must be for periods of at least two consecutive nights; or <br/>
<a id="pl.120.7"></a><var>120.7</var>(ii) at least 20 percent of the annual gross receipts must be from charges for rental of fish <br/>
<a id="pl.120.8"></a><var>120.8</var>houses, boats and motors, snowmobiles, downhill or cross-country ski equipment, or <br/>
<a id="pl.120.9"></a><var>120.9</var>charges for marina services, launch services, and guide services, or the sale of bait and <br/>
<a id="pl.120.10"></a><var>120.10</var>fishing tackle. For purposes of this determination, a paid booking of five or more nights <br/>
<a id="pl.120.11"></a><var>120.11</var>shall be counted as two bookings. Class 4c also includes commercial use real property <br/>
<a id="pl.120.12"></a><var>120.12</var>used exclusively for recreational purposes in conjunction with class 4c property devoted <br/>
<a id="pl.120.13"></a><var>120.13</var>to temporary and seasonal residential occupancy for recreational purposes, up to a total of <br/>
<a id="pl.120.14"></a><var>120.14</var>two acres, provided the property is not devoted to commercial recreational use for more <br/>
<a id="pl.120.15"></a><var>120.15</var>than 250 days in the year preceding the year of assessment and is located within two <br/>
<a id="pl.120.16"></a><var>120.16</var>miles of the class 4c property with which it is used. Owners of real and personal property <br/>
<a id="pl.120.17"></a><var>120.17</var>devoted to temporary and seasonal residential occupancy for recreation purposes and all <br/>
<a id="pl.120.18"></a><var>120.18</var>or a portion of which was devoted to commercial purposes for not more than 250 days in <br/>
<a id="pl.120.19"></a><var>120.19</var>the year preceding the year of assessment desiring classification as class 4c, must submit a <br/>
<a id="pl.120.20"></a><var>120.20</var>declaration to the assessor designating the cabins or units occupied for 250 days or less in <br/>
<a id="pl.120.21"></a><var>120.21</var>the year preceding the year of assessment by January 15 of the assessment year. Those <br/>
<a id="pl.120.22"></a><var>120.22</var>cabins or units and a proportionate share of the land on which they are located must be <br/>
<a id="pl.120.23"></a><var>120.23</var>designated class 4c as otherwise provided. The remainder of the cabins or units and <br/>
<a id="pl.120.24"></a><var>120.24</var>a proportionate share of the land on which they are located will be designated as class <br/>
<a id="pl.120.25"></a><var>120.25</var>3a. The owner of property desiring designation as class 4c property must provide guest <br/>
<a id="pl.120.26"></a><var>120.26</var>registers or other records demonstrating that the units for which class 4c designation is <br/>
<a id="pl.120.27"></a><var>120.27</var>sought were not occupied for more than 250 days in the year preceding the assessment if <br/>
<a id="pl.120.28"></a><var>120.28</var>so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, <br/>
<a id="pl.120.29"></a><var>120.29</var>(4) conference center or meeting room, and (5) other nonresidential facility operated on a <br/>
<a id="pl.120.30"></a><var>120.30</var>commercial basis not directly related to temporary and seasonal residential occupancy for <br/>
<a id="pl.120.31"></a><var>120.31</var>recreation purposes does not qualify for class 4c; <br/>
<a id="pl.120.32"></a><var>120.32</var>    (2) qualified property used as a golf course if: <br/>
<a id="pl.120.33"></a><var>120.33</var>    (i) it is open to the public on a daily fee basis. It may charge membership fees or <br/>
<a id="pl.120.34"></a><var>120.34</var>dues, but a membership fee may not be required in order to use the property for golfing, <br/>
<a id="pl.120.35"></a><var>120.35</var>and its green fees for golfing must be comparable to green fees typically charged by <br/>
<a id="pl.120.36"></a><var>120.36</var>municipal courses; and <br/>
<a id="pl.121.1"></a><var>121.1</var>    (ii) it meets the requirements of section 
         <statute_ref>273.112, subdivision 3</statute_ref>, paragraph (d). <br/>
<a id="pl.121.2"></a><var>121.2</var>    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction <br/>
<a id="pl.121.3"></a><var>121.3</var>with the golf course is classified as class 3a property; <br/>
<a id="pl.121.4"></a><var>121.4</var>    (3) real property up to a maximum of three acres of land owned and used by a <br/>
<a id="pl.121.5"></a><var>121.5</var>nonprofit community service oriented organization and that is not used for residential <br/>
<a id="pl.121.6"></a><var>121.6</var>purposes on either a temporary or permanent basis, qualifies for class 4c provided that <br/>
<a id="pl.121.7"></a><var>121.7</var>it meets either of the following: <br/>
<a id="pl.121.8"></a><var>121.8</var>    (i) the property is not used for a revenue-producing activity for more than six days <br/>
<a id="pl.121.9"></a><var>121.9</var>in the calendar year preceding the year of assessment; or <br/>
<a id="pl.121.10"></a><var>121.10</var>    (ii) the organization makes annual charitable contributions and donations at least <br/>
<a id="pl.121.11"></a><var>121.11</var>equal to the property's previous year's property taxes and the property is allowed to be <br/>
<a id="pl.121.12"></a><var>121.12</var>used for public and community meetings or events for no charge, as appropriate to the <br/>
<a id="pl.121.13"></a><var>121.13</var>size of the facility. <br/>
<a id="pl.121.14"></a><var>121.14</var>    For purposes of this clause, <br/>
<a id="pl.121.15"></a><var>121.15</var>    (A) "charitable contributions and donations" has the same meaning as lawful <br/>
<a id="pl.121.16"></a><var>121.16</var>gambling purposes under section 
         <statute_ref>349.12, subdivision 25</statute_ref>, excluding those purposes <br/>
<a id="pl.121.17"></a><var>121.17</var>relating to the payment of taxes, assessments, fees, auditing costs, and utility payments; <br/>
<a id="pl.121.18"></a><var>121.18</var>    (B) "property taxes" excludes the state general tax; <br/>
<a id="pl.121.19"></a><var>121.19</var>    (C) a "nonprofit community service oriented organization" means any corporation, <br/>
<a id="pl.121.20"></a><var>121.20</var>society, association, foundation, or institution organized and operated exclusively for <br/>
<a id="pl.121.21"></a><var>121.21</var>charitable, religious, fraternal, civic, or educational purposes, and which is exempt from <br/>
<a id="pl.121.22"></a><var>121.22</var>federal income taxation pursuant to section 501(c)(3), (10), or (19) of the Internal Revenue <br/>
<a id="pl.121.23"></a><var>121.23</var>Code of 1986, as amended through December 31, 1990; and <br/>
<a id="pl.121.24"></a><var>121.24</var>    (D) "revenue-producing activities" shall include but not be limited to property or that <br/>
<a id="pl.121.25"></a><var>121.25</var>portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt <br/>
<a id="pl.121.26"></a><var>121.26</var>liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling <br/>
<a id="pl.121.27"></a><var>121.27</var>alley, a retail store, gambling conducted by organizations licensed under chapter 349, an <br/>
<a id="pl.121.28"></a><var>121.28</var>insurance business, or office or other space leased or rented to a lessee who conducts a <br/>
<a id="pl.121.29"></a><var>121.29</var>for-profit enterprise on the premises. <br/>
<a id="pl.121.30"></a><var>121.30</var>Any portion of the property qualifying under item (i) which is used for revenue-producing <br/>
<a id="pl.121.31"></a><var>121.31</var>activities for more than six days in the calendar year preceding the year of assessment <br/>
<a id="pl.121.32"></a><var>121.32</var>shall be assessed as class 3a. The use of the property for social events open exclusively <br/>
<a id="pl.121.33"></a><var>121.33</var>to members and their guests for periods of less than 24 hours, when an admission is <br/>
<a id="pl.121.34"></a><var>121.34</var>not charged nor any revenues are received by the organization shall not be considered a <br/>
<a id="pl.121.35"></a><var>121.35</var>revenue-producing activity. <br/>
<a id="pl.122.1"></a><var>122.1</var>    The organization shall maintain records of its charitable contributions and donations <br/>
<a id="pl.122.2"></a><var>122.2</var>and of public meetings and events held on the property and make them available upon <br/>
<a id="pl.122.3"></a><var>122.3</var>request any time to the assessor to ensure eligibility. An organization meeting the <br/>
<a id="pl.122.4"></a><var>122.4</var>requirement under item (ii) must file an application by May 1 with the assessor for <br/>
<a id="pl.122.5"></a><var>122.5</var>eligibility for the current year's assessment. The commissioner shall prescribe a uniform <br/>
<a id="pl.122.6"></a><var>122.6</var>application form and instructions; <br/>
<a id="pl.122.7"></a><var>122.7</var>    (4) postsecondary student housing of not more than one acre of land that is owned by <br/>
<a id="pl.122.8"></a><var>122.8</var>a nonprofit corporation organized under chapter 317A and is used exclusively by a student <br/>
<a id="pl.122.9"></a><var>122.9</var>cooperative, sorority, or fraternity for on-campus housing or housing located within two <br/>
<a id="pl.122.10"></a><var>122.10</var>miles of the border of a college campus; <br/>
<a id="pl.122.11"></a><var>122.11</var>    (5) manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>; <br/>
<a id="pl.122.12"></a><var>122.12</var>    (6) real property that is actively and exclusively devoted to indoor fitness, health, <br/>
<a id="pl.122.13"></a><var>122.13</var>social, recreational, and related uses, is owned and operated by a not-for-profit corporation, <br/>
<a id="pl.122.14"></a><var>122.14</var>and is located within the metropolitan area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>; <br/>
<a id="pl.122.15"></a><var>122.15</var>    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt <br/>
<a id="pl.122.16"></a><var>122.16</var>under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that: <br/>
<a id="pl.122.17"></a><var>122.17</var>    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan <br/>
<a id="pl.122.18"></a><var>122.18</var>Airports Commission, or group thereof; and <br/>
<a id="pl.122.19"></a><var>122.19</var>    (ii) the land lease, or any ordinance or signed agreement restricting the use of the <br/>
<a id="pl.122.20"></a><var>122.20</var>leased premise, prohibits commercial activity performed at the hangar. <br/>
<a id="pl.122.21"></a><var>122.21</var>    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must <br/>
<a id="pl.122.22"></a><var>122.22</var>be filed by the new owner with the assessor of the county where the property is located <br/>
<a id="pl.122.23"></a><var>122.23</var>within 60 days of the sale; <br/>
<a id="pl.122.24"></a><var>122.24</var>    (8) a privately owned noncommercial aircraft storage hangar not exempt under <br/>
<a id="pl.122.25"></a><var>122.25</var>section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that: <br/>
<a id="pl.122.26"></a><var>122.26</var>    (i) the land abuts a public airport; and <br/>
<a id="pl.122.27"></a><var>122.27</var>    (ii) the owner of the aircraft storage hangar provides the assessor with a signed <br/>
<a id="pl.122.28"></a><var>122.28</var>agreement restricting the use of the premises, prohibiting commercial use or activity <br/>
<a id="pl.122.29"></a><var>122.29</var>performed at the hangar; and <br/>
<a id="pl.122.30"></a><var>122.30</var>    (9) residential real estate, a portion of which is used by the owner for homestead <br/>
<a id="pl.122.31"></a><var>122.31</var>purposes, and that is also a place of lodging, if all of the following criteria are met: <br/>
<a id="pl.122.32"></a><var>122.32</var>    (i) rooms are provided for rent to transient guests that generally stay for periods <br/>
<a id="pl.122.33"></a><var>122.33</var>of 14 or fewer days; <br/>
<a id="pl.122.34"></a><var>122.34</var>    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated <br/>
<a id="pl.122.35"></a><var>122.35</var>in the basic room rate; <br/>
<a id="pl.123.1"></a><var>123.1</var>    (iii) meals are not provided to the general public except for special events on fewer <br/>
<a id="pl.123.2"></a><var>123.2</var>than seven days in the calendar year preceding the year of the assessment; and <br/>
<a id="pl.123.3"></a><var>123.3</var>    (iv) the owner is the operator of the property.<br/>
<a id="pl.123.4"></a><var>123.4</var>The market value subject to the 4c classification under this clause is limited to five rental <br/>
<a id="pl.123.5"></a><var>123.5</var>units. Any rental units on the property in excess of five, must be valued and assessed as <br/>
<a id="pl.123.6"></a><var>123.6</var>class 3a. The portion of the property used for purposes of a homestead by the owner must <br/>
<a id="pl.123.7"></a><var>123.7</var>be classified as class 1a property under subdivision 22.; and <br/>
<a id="pl.123.8"></a><var>123.8</var>    (10) real property up to a maximum of three acres and operated as a restaurant <br/>
<a id="pl.123.9"></a><var>123.9</var>as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake <br/>
<a id="pl.123.10"></a><var>123.10</var>as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B) <br/>
<a id="pl.123.11"></a><var>123.11</var>is either devoted to commercial purposes for not more than 250 consecutive days, or <br/>
<a id="pl.123.12"></a><var>123.12</var>receives at least 60 percent of its annual gross receipts from business conducted during <br/>
<a id="pl.123.13"></a><var>123.13</var>four consecutive months. Gross receipts from the sale of alcoholic beverages must be <br/>
<a id="pl.123.14"></a><var>123.14</var>included in determining the property's qualification under subitem (B). The property's <br/>
<a id="pl.123.15"></a><var>123.15</var>primary business must be as a restaurant and not as a bar. Gross receipts from gift shop <br/>
<a id="pl.123.16"></a><var>123.16</var>sales located on the premises must be excluded. Owners of real property desiring 4c <br/>
<a id="pl.123.17"></a><var>123.17</var>classification under this clause must submit an annual declaration to the assessor by <br/>
<a id="pl.123.18"></a><var>123.18</var>February 1 of the current assessment year, based on the property's relevant information for <br/>
<a id="pl.123.19"></a><var>123.19</var>the preceding assessment year. <br/>
<a id="pl.123.20"></a><var>123.20</var>    Class 4c property has a class rate of 1.5 percent of market value, except that (i) each <br/>
<a id="pl.123.21"></a><var>123.21</var>parcel of seasonal residential recreational property not used for commercial purposes has <br/>
<a id="pl.123.22"></a><var>123.22</var>the same class rates as class 4bb property, (ii) manufactured home parks assessed under <br/>
<a id="pl.123.23"></a><var>123.23</var>clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal <br/>
<a id="pl.123.24"></a><var>123.24</var>residential recreational property has a class rate of one percent for the first $500,000 of <br/>
<a id="pl.123.25"></a><var>123.25</var>market value, and 1.25 percent for the remaining market value, (iv) the market value of <br/>
<a id="pl.123.26"></a><var>123.26</var>property described in clause (4) has a class rate of one percent, (v) the market value <br/>
<a id="pl.123.27"></a><var>123.27</var>of property described in clauses (2) and, (6), and (10) has a class rate of 1.25 percent, <br/>
<a id="pl.123.28"></a><var>123.28</var>and (vi) that portion of the market value of property in clause (9) qualifying for class 4c <br/>
<a id="pl.123.29"></a><var>123.29</var>property has a class rate of 1.25 percent. <br/>
<a id="pl.123.30"></a><var>123.30</var>    (e) Class 4d property is qualifying low-income rental housing certified to the assessor <br/>
<a id="pl.123.31"></a><var>123.31</var>by the Housing Finance Agency under section 
         <statute_ref>273.128, subdivision 3</statute_ref>. If only a portion <br/>
<a id="pl.123.32"></a><var>123.32</var>of the units in the building qualify as low-income rental housing units as certified under <br/>
<a id="pl.123.33"></a><var>123.33</var>section 
         <statute_ref>273.128, subdivision 3</statute_ref>, only the proportion of qualifying units to the total number <br/>
<a id="pl.123.34"></a><var>123.34</var>of units in the building qualify for class 4d. The remaining portion of the building shall be <br/>
<a id="pl.123.35"></a><var>123.35</var>classified by the assessor based upon its use. Class 4d also includes the same proportion of <br/>
<a id="pl.123.36"></a><var>123.36</var>land as the qualifying low-income rental housing units are to the total units in the building. <br/>
<a id="pl.124.1"></a><var>124.1</var>For all properties qualifying as class 4d, the market value determined by the assessor must <br/>
<a id="pl.124.2"></a><var>124.2</var>be based on the normal approach to value using normal unrestricted rents. <br/>
<a id="pl.124.3"></a><var>124.3</var>    Class 4d property has a class rate of 0.75 percent. <br/>
<a id="pl.124.4"></a><var>124.4</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2009 and <br/>
<a id="pl.124.5"></a><var>124.5</var>thereafter, except that for the 2008 assessment year, the declaration to the assessor shall be <br/>
<a id="pl.124.6"></a><var>124.6</var>September 1, 2008.<br/>
<br/>
<a id="bill.6.28.0"></a><a id="pl.124.7"></a><var>124.7</var>    Sec. 28. Minnesota Statutes 2006, section 273.13, subdivision 33, is amended to read:<br/>
<a id="pl.124.8"></a><var>124.8</var>    Subd. 33. <b>Classification of unimproved property.</b> (a) All real property that is not <br/>
<a id="pl.124.9"></a><var>124.9</var>improved with a structure must be classified according to its current use.<br/>
<a id="pl.124.10"></a><var>124.10</var>    (b) Except as provided in subdivision 23, paragraph (c), real property that is not <br/>
<a id="pl.124.11"></a><var>124.11</var>improved with a structure and for which there is no identifiable current use must be <br/>
<a id="pl.124.12"></a><var>124.12</var>classified according to its highest and best use permitted under the local zoning ordinance. <br/>
<a id="pl.124.13"></a><var>124.13</var>If the ordinance permits more than one use, the land must be classified according to the <br/>
<a id="pl.124.14"></a><var>124.14</var>highest and best use permitted under the ordinance. If no such ordinance exists, the <br/>
<a id="pl.124.15"></a><var>124.15</var>assessor shall consider the most likely potential use of the unimproved land based upon <br/>
<a id="pl.124.16"></a><var>124.16</var>the use made of surrounding land or land in proximity to the unimproved land.<br/>
<a id="pl.124.17"></a><var>124.17</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.124.18"></a><var>124.18</var>thereafter.<br/>
<br/>
<a id="bill.6.29.0"></a><a id="pl.124.19"></a><var>124.19</var>    Sec. 29. Minnesota Statutes 2006, section 273.1384, subdivision 2, is amended to read:<br/>
<a id="pl.124.20"></a><var>124.20</var>    Subd. 2. <b>Agricultural homestead market value credit.</b> Property classified as class <br/>
<a id="pl.124.21"></a><var>124.21</var>2a agricultural homestead under section 273.13, subdivision 23, paragraph (a), is eligible <br/>
<a id="pl.124.22"></a><var>124.22</var>for an agricultural credit. The credit is computed using the property's agricultural credit <br/>
<a id="pl.124.23"></a><var>124.23</var>market value, defined for this purpose as the property's class 2a market value excluding <br/>
<a id="pl.124.24"></a><var>124.24</var>the market value of the house, garage, and immediately surrounding one acre of land. The <br/>
<a id="pl.124.25"></a><var>124.25</var>credit is equal to 0.3 percent of the first $115,000 of the property's agricultural credit <br/>
<a id="pl.124.26"></a><var>124.26</var>market value minus .05 percent of the property's agricultural credit market value in excess <br/>
<a id="pl.124.27"></a><var>124.27</var>of $115,000, subject to a maximum reduction of $115. In the case of property that is <br/>
<a id="pl.124.28"></a><var>124.28</var>classified in as part as class 2a agricultural homestead and in part as class 2b nonhomestead <br/>
<a id="pl.124.29"></a><var>124.29</var>farm land solely because not all the owners occupy or farm the property, not all the owners <br/>
<a id="pl.124.30"></a><var>124.30</var>have qualifying relatives occupying or farming the property, or solely because not all the <br/>
<a id="pl.124.31"></a><var>124.31</var>spouses of owners occupy the property, the credit must be initially computed as if that <br/>
<a id="pl.124.32"></a><var>124.32</var>nonhomestead agricultural land was also classified as class 2a agricultural homestead and <br/>
<a id="pl.124.33"></a><var>124.33</var>then prorated to the owner-occupant's percentage of ownership.<br/>
<a id="pl.125.1"></a><var>125.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.125.2"></a><var>125.2</var>thereafter.<br/>
<br/>
<a id="bill.6.30.0"></a><a id="pl.125.3"></a><var>125.3</var>    Sec. 30. Minnesota Statutes 2007 Supplement, section 273.1393, is amended to read:<br/>
<a id="pl.125.4"></a><var>125.4</var><b>273.1393 COMPUTATION OF NET PROPERTY TAXES.</b><br/>
<a id="pl.125.5"></a><var>125.5</var>    Notwithstanding any other provisions to the contrary, "net" property taxes are <br/>
<a id="pl.125.6"></a><var>125.6</var>determined by subtracting the credits in the order listed from the gross tax:<br/>
<a id="pl.125.7"></a><var>125.7</var>    (1) disaster credit as provided in sections 
         <statute_ref>273.1231</statute_ref> to 
         <statute_ref>273.1235</statute_ref>; <br/>
<a id="pl.125.8"></a><var>125.8</var>    (2) powerline credit as provided in section 
         <statute_ref>273.42</statute_ref>; <br/>
<a id="pl.125.9"></a><var>125.9</var>    (3) agricultural preserves credit as provided in section 
         <statute_ref>473H.10</statute_ref>; <br/>
<a id="pl.125.10"></a><var>125.10</var>    (4) enterprise zone credit as provided in section 
         <statute_ref>469.171</statute_ref>; <br/>
<a id="pl.125.11"></a><var>125.11</var>    (5) disparity reduction credit;<br/>
<a id="pl.125.12"></a><var>125.12</var>    (6) conservation tax credit as provided in section 
         <statute_ref>273.119</statute_ref>; <br/>
<a id="pl.125.13"></a><var>125.13</var>    (7) homestead and agricultural credits as provided in section 
         <statute_ref>273.1384</statute_ref>; <br/>
<a id="pl.125.14"></a><var>125.14</var>    (8) taconite homestead credit as provided in section 
         <statute_ref>273.135</statute_ref>; and <br/>
<a id="pl.125.15"></a><var>125.15</var>    (9) supplemental homestead credit as provided in section 
         <statute_ref>273.1391; and<br/>
</statute_ref><a id="pl.125.16"></a><var>125.16</var>    (10) the bovine tuberculosis zone credit, as provided in section 273.113. <br/>
<a id="pl.125.17"></a><var>125.17</var>    The combination of all property tax credits must not exceed the gross tax amount.<br/>
<a id="pl.125.18"></a><var>125.18</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2009 and <br/>
<a id="pl.125.19"></a><var>125.19</var>thereafter.<br/>
<br/>
<a id="bill.6.31.0"></a><a id="pl.125.20"></a><var>125.20</var>    Sec. 31. Minnesota Statutes 2006, section 273.19, subdivision 1, is amended to read:<br/>
<a id="pl.125.21"></a><var>125.21</var>    Subdivision 1. <b>Tax-exempt property; lease.</b> Except as provided in subdivision 3 or <br/>
<a id="pl.125.22"></a><var>125.22</var>4, tax-exempt property held under a lease for a term of at least one year, and not taxable <br/>
<a id="pl.125.23"></a><var>125.23</var>under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, or under a contract for the purchase thereof, shall be <br/>
<a id="pl.125.24"></a><var>125.24</var>considered, for all purposes of taxation, as the property of the person holding it. In this <br/>
<a id="pl.125.25"></a><var>125.25</var>subdivision, "tax-exempt property" means property owned by the United States, the state, <br/>
<a id="pl.125.26"></a><var>125.26</var>a school, or any religious, scientific, or benevolent society or institution, incorporated <br/>
<a id="pl.125.27"></a><var>125.27</var>or unincorporated, or any corporation whose property is not taxed in the same manner <br/>
<a id="pl.125.28"></a><var>125.28</var>as other property. This subdivision does not apply to property exempt from taxation <br/>
<a id="pl.125.29"></a><var>125.29</var>under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, paragraph (b), clauses (2), (3), and (4), or to property <br/>
<a id="pl.125.30"></a><var>125.30</var>exempt from taxation under section 272.0213. <br/>
<a id="pl.125.31"></a><var>125.31</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2009 and <br/>
<a id="pl.125.32"></a><var>125.32</var>thereafter.<br/>
<br/>
<a id="bill.6.32.0"></a><a id="pl.125.33"></a><var>125.33</var>    Sec. 32. Minnesota Statutes 2006, section 274.14, is amended to read:<br/>
<a id="pl.126.1"></a><var>126.1</var><b>274.14 LENGTH OF SESSION; RECORD.</b><br/>
<a id="pl.126.2"></a><var>126.2</var>    The board may meet on any ten consecutive meeting days in June, after the second <br/>
<a id="pl.126.3"></a><var>126.3</var>Friday in June. The actual meeting dates must be contained on the valuation notices <br/>
<a id="pl.126.4"></a><var>126.4</var>mailed to each property owner in the county as provided in section 
         <statute_ref>273.121</statute_ref>. For this <br/>
<a id="pl.126.5"></a><var>126.5</var>purpose, "meeting days" is defined as any day of the week excluding Saturday and Sunday. <br/>
<a id="pl.126.6"></a><var>126.6</var>At the board's discretion, "meeting days" may include Saturday. No action taken by the <br/>
<a id="pl.126.7"></a><var>126.7</var>county board of review after June 30 is valid, except for corrections permitted in sections <br/>
<statute_ref><a id="pl.126.8"></a><var>126.8</var>273.01
         </statute_ref> and 
         <statute_ref>274.01</statute_ref>. The county auditor shall keep an accurate record of the proceedings <br/>
<a id="pl.126.9"></a><var>126.9</var>and orders of the board. The record must be published like other proceedings of county <br/>
<a id="pl.126.10"></a><var>126.10</var>commissioners. A copy of the published record must be sent to the commissioner of <br/>
<a id="pl.126.11"></a><var>126.11</var>revenue, with the abstract of assessment required by section 
         <statute_ref>274.16</statute_ref>.<br/>
<a id="pl.126.12"></a><var>126.12</var>    For counties that conduct either regular board of review meetings or open book <br/>
<a id="pl.126.13"></a><var>126.13</var>meetings, at least one of the meeting days must include a meeting that does not end <br/>
<a id="pl.126.14"></a><var>126.14</var>before 7:00 p.m. For counties that require taxpayer appointments for the board of review, <br/>
<a id="pl.126.15"></a><var>126.15</var>appointments must include some available times that extend until at least 7:00 p.m. The <br/>
<a id="pl.126.16"></a><var>126.16</var>county may have a Saturday meeting in lieu of, or in addition to, the extended meeting <br/>
<a id="pl.126.17"></a><var>126.17</var>times under this paragraph.<br/>
<a id="pl.126.18"></a><var>126.18</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2009 and <br/>
<a id="pl.126.19"></a><var>126.19</var>thereafter.<br/>
<br/>
<a id="bill.6.33.0"></a><a id="pl.126.20"></a><var>126.20</var>    Sec. 33. Minnesota Statutes 2006, section 275.065, is amended by adding a subdivision <br/>
<a id="pl.126.21"></a><var>126.21</var>to read:<br/>
<a id="pl.126.22"></a><var>126.22</var>    Subd. 1d. <b>Failure to certify proposed levy.</b>  If a taxing authority fails to certify <br/>
<a id="pl.126.23"></a><var>126.23</var>its proposed levy by the due dates specified under subdivisions 1, 1a, and 1c, the county <br/>
<a id="pl.126.24"></a><var>126.24</var>auditor shall use the authority's previous year's final levy under section 275.07, subdivision <br/>
<a id="pl.126.25"></a><var>126.25</var>1, for purposes of determining its proposed property tax notices and public advertisements <br/>
<a id="pl.126.26"></a><var>126.26</var>under this section. <br/>
<a id="pl.126.27"></a><var>126.27</var><b>EFFECTIVE DATE.</b>This section is effective for notices prepared in 2008, for <br/>
<a id="pl.126.28"></a><var>126.28</var>property taxes payable in 2009 and thereafter.<br/>
<br/>
<a id="bill.6.34.0"></a><a id="pl.126.29"></a><var>126.29</var>    Sec. 34. Minnesota Statutes 2006, section 275.065, subdivision 8, is amended to read:<br/>
<a id="pl.126.30"></a><var>126.30</var>    Subd. 8. <b>Hearing.</b> Notwithstanding any other provision of law, Ramsey County, <br/>
<a id="pl.126.31"></a><var>126.31</var>the city of St. Paul, and Independent School District No. 625 are authorized to and shall <br/>
<a id="pl.126.32"></a><var>126.32</var>hold their initial public hearing jointly. The hearing must be held on  during the week of <br/>
<a id="pl.126.33"></a><var>126.33</var>the second Tuesday of December each year. The advertisement required in subdivision <br/>
<a id="pl.127.1"></a><var>127.1</var>5a may be a joint advertisement. The hearing is otherwise subject to the requirements <br/>
<a id="pl.127.2"></a><var>127.2</var>of this section.<br/>
<a id="pl.127.3"></a><var>127.3</var>    Ramsey County is authorized to hold an additional initial hearing or hearings as <br/>
<a id="pl.127.4"></a><var>127.4</var>provided under this section, provided that any additional hearings must not conflict <br/>
<a id="pl.127.5"></a><var>127.5</var>with the initial or continuation hearing dates of the other taxing districts. However, if <br/>
<a id="pl.127.6"></a><var>127.6</var>Ramsey County elects not to hold such additional initial hearing or hearings, the joint <br/>
<a id="pl.127.7"></a><var>127.7</var>initial hearing required by this subdivision must be held in a St. Paul location convenient <br/>
<a id="pl.127.8"></a><var>127.8</var>to residents of Ramsey County.<br/>
<a id="pl.127.9"></a><var>127.9</var><b>EFFECTIVE DATE.</b>This section is effective for proposed notices and hearings <br/>
<a id="pl.127.10"></a><var>127.10</var>held in 2008 and thereafter.<br/>
<br/>
<a id="bill.6.35.0"></a><a id="pl.127.11"></a><var>127.11</var>    Sec. 35. Minnesota Statutes 2006, section 282.08, is amended to read:<br/>
<a id="pl.127.12"></a><var>127.12</var><b>282.08 APPORTIONMENT OF PROCEEDS TO TAXING DISTRICTS.</b><br/>
<a id="pl.127.13"></a><var>127.13</var>    The net proceeds from the sale or rental of any parcel of forfeited land, or from the <br/>
<a id="pl.127.14"></a><var>127.14</var>sale of products from the forfeited land, must be apportioned by the county auditor to the <br/>
<a id="pl.127.15"></a><var>127.15</var>taxing districts interested in the land, as follows:<br/>
<a id="pl.127.16"></a><var>127.16</var>    (1) the portion required to pay any amounts included in the appraised value <br/>
<a id="pl.127.17"></a><var>127.17</var>under section 
         <statute_ref>282.01, subdivision 3</statute_ref>, as representing increased value due to any public <br/>
<a id="pl.127.18"></a><var>127.18</var>improvement made after forfeiture of the parcel to the state, but not exceeding the amount <br/>
<a id="pl.127.19"></a><var>127.19</var>certified by the clerk of the municipality appropriate governmental authority must be <br/>
<a id="pl.127.20"></a><var>127.20</var>apportioned to the municipal governmental subdivision entitled to it;<br/>
<a id="pl.127.21"></a><var>127.21</var>    (2) the portion required to pay any amount included in the appraised value under <br/>
<a id="pl.127.22"></a><var>127.22</var>section 
         <statute_ref>282.019, subdivision 5</statute_ref>, representing increased value due to response actions <br/>
<a id="pl.127.23"></a><var>127.23</var>taken after forfeiture of the parcel to the state, but not exceeding the amount of expenses <br/>
<a id="pl.127.24"></a><var>127.24</var>certified by the Pollution Control Agency or the commissioner of agriculture, must be <br/>
<a id="pl.127.25"></a><var>127.25</var>apportioned to the agency or the commissioner of agriculture and deposited in the fund <br/>
<a id="pl.127.26"></a><var>127.26</var>from which the expenses were paid;<br/>
<a id="pl.127.27"></a><var>127.27</var>    (3) the portion of the remainder required to discharge any special assessment <br/>
<a id="pl.127.28"></a><var>127.28</var>chargeable against the parcel for drainage or other purpose whether due or deferred at <br/>
<a id="pl.127.29"></a><var>127.29</var>the time of forfeiture, must be apportioned to the municipal governmental subdivision <br/>
<a id="pl.127.30"></a><var>127.30</var>entitled to it; and<br/>
<a id="pl.127.31"></a><var>127.31</var>    (4) any balance must be apportioned as follows:<br/>
<a id="pl.127.32"></a><var>127.32</var>    (i) The county board may annually by resolution set aside no more than 30 percent <br/>
<a id="pl.127.33"></a><var>127.33</var>of the receipts remaining to be used for forest development on tax-forfeited land and <br/>
<a id="pl.127.34"></a><var>127.34</var>dedicated memorial forests, to be expended under the supervision of the county board. It <br/>
<a id="pl.128.1"></a><var>128.1</var>must be expended only on projects improving the health and management of the forest <br/>
<a id="pl.128.2"></a><var>128.2</var>resource.<br/>
<a id="pl.128.3"></a><var>128.3</var>    (ii) The county board may annually by resolution set aside no more than 20 percent <br/>
<a id="pl.128.4"></a><var>128.4</var>of the receipts remaining to be used for the acquisition and maintenance of county parks <br/>
<a id="pl.128.5"></a><var>128.5</var>or recreational areas as defined in sections 
         <statute_ref>398.31</statute_ref> to 
         <statute_ref>398.36</statute_ref>, to be expended under the <br/>
<a id="pl.128.6"></a><var>128.6</var>supervision of the county board.<br/>
<a id="pl.128.7"></a><var>128.7</var>    (iii) Any balance remaining must be apportioned as follows: county, 40 percent; <br/>
<a id="pl.128.8"></a><var>128.8</var>town or city, 20 percent; and school district, 40 percent, provided, however, that in <br/>
<a id="pl.128.9"></a><var>128.9</var>unorganized territory that portion which would have accrued to the township must be <br/>
<a id="pl.128.10"></a><var>128.10</var>administered by the county board of commissioners.<br/>
<a id="pl.128.11"></a><var>128.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.36.0"></a><a id="pl.128.12"></a><var>128.12</var>    Sec. 36. Minnesota Statutes 2006, section 298.75, subdivision 1, as amended by Laws <br/>
<a id="pl.128.13"></a><var>128.13</var>2008, chapter 154, article 8, section 15, is amended to read:<br/>
<a id="pl.128.14"></a><var>128.14</var>    Subdivision 1.  <b>Definitions.</b> Except as may otherwise be provided, the following <br/>
<a id="pl.128.15"></a><var>128.15</var>words, when used in this section, shall have the meanings herein ascribed to them. <br/>
<a id="pl.128.16"></a><var>128.16</var>    (a) "Aggregate material" means: <br/>
<a id="pl.128.17"></a><var>128.17</var>    (1) nonmetallic natural mineral aggregate including, but not limited to sand, silica <br/>
<a id="pl.128.18"></a><var>128.18</var>sand, gravel, crushed rock, limestone, granite, and borrow, but only if the borrow is <br/>
<a id="pl.128.19"></a><var>128.19</var>transported on a public road, street, or highway, provided that nonmetallic aggregate <br/>
<a id="pl.128.20"></a><var>128.20</var>material does not include dimension stone and dimension granite; and <br/>
<a id="pl.128.21"></a><var>128.21</var>    (2) taconite tailings, crushed rock, and architectural or dimension stone and <br/>
<a id="pl.128.22"></a><var>128.22</var>dimension granite removed from a taconite mine or the site of a previously operated <br/>
<a id="pl.128.23"></a><var>128.23</var>taconite mine. <br/>
<a id="pl.128.24"></a><var>128.24</var>    Aggregate material must be measured or weighed after it has been extracted from <br/>
<a id="pl.128.25"></a><var>128.25</var>the pit, quarry, or deposit. <br/>
<a id="pl.128.26"></a><var>128.26</var>    (b) "Person" means any individual, firm, partnership, corporation, organization, <br/>
<a id="pl.128.27"></a><var>128.27</var>trustee, association, or other entity. <br/>
<a id="pl.128.28"></a><var>128.28</var>    (c) "Operator" means any person engaged in the business of removing aggregate <br/>
<a id="pl.128.29"></a><var>128.29</var>material from the surface or subsurface of the soil, for the purpose of sale, either directly <br/>
<a id="pl.128.30"></a><var>128.30</var>or indirectly, through the use of the aggregate material in a marketable product or service. <br/>
<a id="pl.128.31"></a><var>128.31</var>    (d) "Extraction site" means a pit, quarry, or deposit containing aggregate material <br/>
<a id="pl.128.32"></a><var>128.32</var>and any contiguous property to the pit, quarry, or deposit which is used by the operator for <br/>
<a id="pl.128.33"></a><var>128.33</var>stockpiling the aggregate material. <br/>
<a id="pl.129.1"></a><var>129.1</var>    (e) "Importer" means any person who buys aggregate material produced excavated <br/>
<a id="pl.129.2"></a><var>129.2</var>from a county not listed in paragraph (f) or another state and causes the aggregate material <br/>
<a id="pl.129.3"></a><var>129.3</var>to be imported into a county in this state which imposes a tax on aggregate material. <br/>
<a id="pl.129.4"></a><var>129.4</var>    (f) "County" means the counties of Pope, Stearns, Benton, Sherburne, Carver, Scott, <br/>
<a id="pl.129.5"></a><var>129.5</var>Dakota, Le Sueur, Kittson, Marshall, Pennington, Red Lake, Polk, Norman, Mahnomen, <br/>
<a id="pl.129.6"></a><var>129.6</var>Clay, Becker, Carlton, St. Louis, Rock, Murray, Wilkin, Big Stone, Sibley, Hennepin, <br/>
<a id="pl.129.7"></a><var>129.7</var>Washington, Chisago, and Ramsey. County also means any other county whose board <br/>
<a id="pl.129.8"></a><var>129.8</var>has voted after a public hearing to impose the tax under this section and has notified the <br/>
<a id="pl.129.9"></a><var>129.9</var>commissioner of revenue of the imposition of the tax. <br/>
<a id="pl.129.10"></a><var>129.10</var>    (g) "Borrow" means granular borrow, consisting of durable particles of gravel and <br/>
<a id="pl.129.11"></a><var>129.11</var>sand, crushed quarry or mine rock, crushed gravel or stone, or any combination thereof, <br/>
<a id="pl.129.12"></a><var>129.12</var>the ratio of the portion passing the (#200) sieve divided by the portion passing the (1 inch) <br/>
<a id="pl.129.13"></a><var>129.13</var>sieve may not exceed 20 percent by mass. <br/>
<a id="pl.129.14"></a><var>129.14</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2009.<br/>
<br/>
<a id="bill.6.37.0"></a><a id="pl.129.15"></a><var>129.15</var>    Sec. 37. Minnesota Statutes 2006, section 298.75, subdivision 2, is amended to read:<br/>
<a id="pl.129.16"></a><var>129.16</var>    Subd. 2. <b>Tax imposed.</b> (a) A county that imposes the aggregate production tax shall <br/>
<a id="pl.129.17"></a><var>129.17</var>impose upon every importer and operator a production tax up to ten cents of 21.5 cents per <br/>
<a id="pl.129.18"></a><var>129.18</var>cubic yard or up to seven 15 cents per ton of aggregate material removed excavated in the <br/>
<a id="pl.129.19"></a><var>129.19</var>county except that the county board may decide not to impose this tax if it determines <br/>
<a id="pl.129.20"></a><var>129.20</var>that in the previous year operators removed less than 20,000 tons or 14,000 cubic yards of <br/>
<a id="pl.129.21"></a><var>129.21</var>aggregate material from that county. The tax shall not be imposed on aggregate material <br/>
<a id="pl.129.22"></a><var>129.22</var>produced excavated in the county when until the aggregate material is transported from <br/>
<a id="pl.129.23"></a><var>129.23</var>the extraction site or sold, whichever occurs first. When aggregate material is stored in a <br/>
<a id="pl.129.24"></a><var>129.24</var>stockpile within the state of Minnesota and a public highway, road or street is not used <br/>
<a id="pl.129.25"></a><var>129.25</var>for transporting the aggregate material, the tax shall not be imposed until either when the <br/>
<a id="pl.129.26"></a><var>129.26</var>aggregate material is sold, or when it is transported from the stockpile site, or when it is <br/>
<a id="pl.129.27"></a><var>129.27</var>used from the stockpile, whichever occurs first.<br/>
<a id="pl.129.28"></a><var>129.28</var>    (b) A county that imposes the aggregate production tax under paragraph (a) shall <br/>
<a id="pl.129.29"></a><var>129.29</var>impose upon every importer a production tax of 21.5 cents per cubic yard or 15 cents per <br/>
<a id="pl.129.30"></a><var>129.30</var>ton of aggregate material imported into the county. The tax shall be imposed when the <br/>
<a id="pl.129.31"></a><var>129.31</var>aggregate material is imported from the extraction site or sold. When imported aggregate <br/>
<a id="pl.129.32"></a><var>129.32</var>material is stored in a stockpile within the state of Minnesota and a public highway, road, <br/>
<a id="pl.129.33"></a><var>129.33</var>or street is not used for transporting the aggregate material, the tax shall be imposed either <br/>
<a id="pl.129.34"></a><var>129.34</var>when the aggregate material is sold, when it is transported from the stockpile site, or when <br/>
<a id="pl.130.1"></a><var>130.1</var>it is used from the stockpile, whichever occurs first. The tax shall be imposed on an <br/>
<a id="pl.130.2"></a><var>130.2</var>importer when the aggregate material is imported into the county that imposes the tax.<br/>
<a id="pl.130.3"></a><var>130.3</var>    (c) If the aggregate material is transported directly from the extraction site to a <br/>
<a id="pl.130.4"></a><var>130.4</var>waterway, railway, or another mode of transportation other than a highway, road or street, <br/>
<a id="pl.130.5"></a><var>130.5</var>the tax imposed by this section shall be apportioned equally between the county where the <br/>
<a id="pl.130.6"></a><var>130.6</var>aggregate material is extracted and the county to which the aggregate material is originally <br/>
<a id="pl.130.7"></a><var>130.7</var>transported. If that destination is not located in Minnesota, then the county where the <br/>
<a id="pl.130.8"></a><var>130.8</var>aggregate material was extracted shall receive all of the proceeds of the tax.<br/>
<a id="pl.130.9"></a><var>130.9</var>    (d) A county, city, or town that receives revenue under this section is prohibited <br/>
<a id="pl.130.10"></a><var>130.10</var>from imposing any additional host community fees on aggregate production within that <br/>
<a id="pl.130.11"></a><var>130.11</var>county, city, or town.<br/>
<a id="pl.130.12"></a><var>130.12</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2009.<br/>
<br/>
<a id="bill.6.38.0"></a><a id="pl.130.13"></a><var>130.13</var>    Sec. 38. Minnesota Statutes 2006, section 298.75, subdivision 6, is amended to read:<br/>
<a id="pl.130.14"></a><var>130.14</var>    Subd. 6. <b>Penalties; removal of aggregate if previous tax not paid; false report.</b><br/>
<a id="pl.130.15"></a><var>130.15</var>    It is a misdemeanor for any operator or importer to remove aggregate material from a <br/>
<a id="pl.130.16"></a><var>130.16</var>pit, quarry, or deposit or for any importer to import aggregate material unless all taxes <br/>
<a id="pl.130.17"></a><var>130.17</var>due under this section for the all previous reporting period periods have been paid or <br/>
<a id="pl.130.18"></a><var>130.18</var>objections thereto have been filed pursuant to subdivision 4.<br/>
<a id="pl.130.19"></a><var>130.19</var>    It is a misdemeanor for the operator or importer who is required to file a report to file <br/>
<a id="pl.130.20"></a><var>130.20</var>a false report with intent to evade the tax.<br/>
<a id="pl.130.21"></a><var>130.21</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2009.<br/>
<br/>
<a id="bill.6.39.0"></a><a id="pl.130.22"></a><var>130.22</var>    Sec. 39. Minnesota Statutes 2006, section 298.75, subdivision 7, as amended by Laws <br/>
<a id="pl.130.23"></a><var>130.23</var>2008, chapter 154, article 8, section 17, is amended to read:<br/>
<a id="pl.130.24"></a><var>130.24</var>    Subd. 7.  <b>Proceeds of taxes.</b> (a) All money collected as taxes under this section <br/>
<a id="pl.130.25"></a><var>130.25</var>on aggregate material as defined in subdivision 1, paragraph (a), clause (1), shall be <br/>
<a id="pl.130.26"></a><var>130.26</var>deposited in the county treasury and credited as follows, for expenditure by the county <br/>
<a id="pl.130.27"></a><var>130.27</var>board: according to this subdivision. <br/>
<a id="pl.130.28"></a><var>130.28</var>    (b) The county auditor may retain an annual administrative fee of up to five percent <br/>
<a id="pl.130.29"></a><var>130.29</var>of the total taxes collected in any year.<br/>
<a id="pl.130.30"></a><var>130.30</var>    (c) The balance of the taxes, after any deduction under paragraph (b), shall be <br/>
<a id="pl.130.31"></a><var>130.31</var>credited as follows:<br/>
<a id="pl.130.32"></a><var>130.32</var>    (a) Sixty (1) 42.5 percent to the county road and bridge fund for expenditure for the <br/>
<a id="pl.130.33"></a><var>130.33</var>maintenance, construction and reconstruction of roads, highways and bridges; <br/>
<a id="pl.131.1"></a><var>131.1</var>    (b) Thirty (2) 42.5 percent to the road and bridge fund of those towns as determined <br/>
<a id="pl.131.2"></a><var>131.2</var>by the county board and to the general fund or other designated fund of those cities as <br/>
<a id="pl.131.3"></a><var>131.3</var>determined by the county board of the city or town in which the mine is located, or to the <br/>
<a id="pl.131.4"></a><var>131.4</var>county, if the mine is located in an unorganized town, to be expended for maintenance, <br/>
<a id="pl.131.5"></a><var>131.5</var>construction and reconstruction of roads, highways and bridges; and <br/>
<a id="pl.131.6"></a><var>131.6</var>    (c) Ten (3) 15 percent to a special reserve fund which is hereby established, for <br/>
<a id="pl.131.7"></a><var>131.7</var>expenditure for the restoration of abandoned pits, quarries, or deposits located upon public <br/>
<a id="pl.131.8"></a><var>131.8</var>and tax forfeited lands within the county. <br/>
<a id="pl.131.9"></a><var>131.9</var>    If there are no abandoned pits, quarries or deposits located upon public or tax <br/>
<a id="pl.131.10"></a><var>131.10</var>forfeited lands within the county, this portion of the tax shall be deposited in the county <br/>
<a id="pl.131.11"></a><var>131.11</var>road and bridge fund for expenditure for the maintenance, construction and reconstruction <br/>
<a id="pl.131.12"></a><var>131.12</var>of roads, highways and bridges used for any other unmet reclamation need or for <br/>
<a id="pl.131.13"></a><var>131.13</var>conservation or other environmental needs. <br/>
<a id="pl.131.14"></a><var>131.14</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2009.<br/>
<br/>
<a id="bill.6.40.0"></a><a id="pl.131.15"></a><var>131.15</var>    Sec. 40. Minnesota Statutes 2006, section 365.243, is amended by adding a subdivision <br/>
<a id="pl.131.16"></a><var>131.16</var>to read:<br/>
<a id="pl.131.17"></a><var>131.17</var>    Subd. 3. <b>Levy for first responder association.</b> A county board may annually levy <br/>
<a id="pl.131.18"></a><var>131.18</var>taxes on property located within the area of unorganized territory to which a first responder <br/>
<a id="pl.131.19"></a><var>131.19</var>or fire protection association provides first responder services. By July 1 of the levy year, <br/>
<a id="pl.131.20"></a><var>131.20</var>the association must certify to the county board the area of the unorganized township to <br/>
<a id="pl.131.21"></a><var>131.21</var>which the association will provide first responder services during the following calendar <br/>
<a id="pl.131.22"></a><var>131.22</var>year. The proceeds of the levy must be distributed to the association.<br/>
<a id="pl.131.23"></a><var>131.23</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2009 and <br/>
<a id="pl.131.24"></a><var>131.24</var>thereafter.<br/>
<br/>
<a id="bill.6.41.0"></a><a id="pl.131.25"></a><var>131.25</var>    Sec. 41. Minnesota Statutes 2006, section 365A.095, as amended by Laws 2008, <br/>
<a id="pl.131.26"></a><var>131.26</var>chapter 154, article 10, section 8, is amended to read:<br/>
<a id="pl.131.27"></a><var>131.27</var><b>365A.095 PETITION FOR REMOVAL OF DISTRICT; PROCEDURE</b><b>; </b><br/>
<a id="pl.131.28"></a><var>131.28</var><b>REFUND OF SURPLUS</b><b>. </b><br/>
<a id="pl.131.29"></a><var>131.29</var>    Subdivision 1.  <b>Petition</b><b>; procedure</b><b>.</b> A petition signed by at least 75 percent of the <br/>
<a id="pl.131.30"></a><var>131.30</var>property owners in the territory of the subordinate service district requesting the removal <br/>
<a id="pl.131.31"></a><var>131.31</var>of the district may be presented to the town board. Within 30 days after the town board <br/>
<a id="pl.131.32"></a><var>131.32</var>receives the petition, the town clerk shall determine the validity of the signatures on <br/>
<a id="pl.131.33"></a><var>131.33</var>the petition. If the requisite number of signatures are certified as valid, the town board <br/>
<a id="pl.132.1"></a><var>132.1</var>must hold a public hearing on the petitioned matter. Within 30 days after the end of <br/>
<a id="pl.132.2"></a><var>132.2</var>the hearing, the town board must decide whether to discontinue the subordinate service <br/>
<a id="pl.132.3"></a><var>132.3</var>district, continue as it is, or take some other action with respect to it. <br/>
<a id="pl.132.4"></a><var>132.4</var>    Subd. 2.  <b>Bonds</b><b> Option to refund surplus</b><b>.</b> If obligations have been issued for the <br/>
<a id="pl.132.5"></a><var>132.5</var>benefit of the subordinate service district, the rates, charges, and tax levies, if any, continue <br/>
<a id="pl.132.6"></a><var>132.6</var>until the obligations and any obligations issued to refund them have been paid in full.If the <br/>
<a id="pl.132.7"></a><var>132.7</var>district is removed under subdivision 1, after all outstanding obligations of the district <br/>
<a id="pl.132.8"></a><var>132.8</var>have been paid in full, the town board may vote to refund any surplus tax revenue or <br/>
<a id="pl.132.9"></a><var>132.9</var>service charge, or any part of it, collected from the district under section 365A.08. The <br/>
<a id="pl.132.10"></a><var>132.10</var>refund must be distributed equally to the owners of any property within the discontinued <br/>
<a id="pl.132.11"></a><var>132.11</var>district that were charged the extra tax or service fee during the most recent tax year for <br/>
<a id="pl.132.12"></a><var>132.12</var>which the tax or service fee was imposed. Any surplus not refunded under this section <br/>
<a id="pl.132.13"></a><var>132.13</var>must be transferred to the town's general fund.<br/>
<a id="pl.132.14"></a><var>132.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.42.0"></a><a id="pl.132.15"></a><var>132.15</var>    Sec. 42. Minnesota Statutes 2006, section 429.101, subdivision 1, is amended to read:<br/>
<a id="pl.132.16"></a><var>132.16</var>    Subdivision 1. <b>Ordinances.</b> (a) In addition to any other method authorized by <br/>
<a id="pl.132.17"></a><var>132.17</var>law or charter, the governing body of any municipality may provide for the collection <br/>
<a id="pl.132.18"></a><var>132.18</var>of unpaid special charges as a special assessment against the property benefited for all <br/>
<a id="pl.132.19"></a><var>132.19</var>or any part of the cost of:<br/>
<a id="pl.132.20"></a><var>132.20</var>    (1) snow, ice, or rubbish removal from sidewalks;<br/>
<a id="pl.132.21"></a><var>132.21</var>    (2) weed elimination from streets or private property;<br/>
<a id="pl.132.22"></a><var>132.22</var>    (3) removal or elimination of public health or safety hazards from private property, <br/>
<a id="pl.132.23"></a><var>132.23</var>excluding any structure included under the provisions of sections 
         <statute_ref>463.15</statute_ref> to 
         <statute_ref>463.26</statute_ref>; <br/>
<a id="pl.132.24"></a><var>132.24</var>    (4) installation or repair of water service lines, street sprinkling or other dust <br/>
<a id="pl.132.25"></a><var>132.25</var>treatment of streets;<br/>
<a id="pl.132.26"></a><var>132.26</var>    (5) the trimming and care of trees and the removal of unsound trees from any street;<br/>
<a id="pl.132.27"></a><var>132.27</var>    (6) the treatment and removal of insect infested or diseased trees on private property, <br/>
<a id="pl.132.28"></a><var>132.28</var>the repair of sidewalks and alleys;<br/>
<a id="pl.132.29"></a><var>132.29</var>    (7) the operation of a street lighting system;<br/>
<a id="pl.132.30"></a><var>132.30</var>    (8) the operation and maintenance of a fire protection or a pedestrian skyway system;<br/>
<a id="pl.132.31"></a><var>132.31</var>    (9) reinspections which find noncompliance after the due date for compliance with <br/>
<a id="pl.132.32"></a><var>132.32</var>an order to correct inspections relating to a municipal housing maintenance code violation;<br/>
<a id="pl.132.33"></a><var>132.33</var>    (10) the recovery of any disbursements under section 
         <statute_ref>504B.445, subdivision 4</statute_ref>, <br/>
<a id="pl.132.34"></a><var>132.34</var>clause (5), including disbursements for payment of utility bills and other services, even if <br/>
<a id="pl.133.1"></a><var>133.1</var>provided by a third party, necessary to remedy violations as described in section 
         <statute_ref>504B.445, <br/>
<a id="pl.133.2"></a><var>133.2</var>subdivision 4
         </statute_ref>, clause (2); or <br/>
<a id="pl.133.3"></a><var>133.3</var>    (11) [Repealed, 2004 c 275 s 5]<br/>
<a id="pl.133.4"></a><var>133.4</var>as a special assessment against the property benefited.<br/>
<a id="pl.133.5"></a><var>133.5</var>    (12) the recovery of delinquent vacant building registration fees under a municipal <br/>
<a id="pl.133.6"></a><var>133.6</var>program designed to identify and register vacant buildings.<br/>
<a id="pl.133.7"></a><var>133.7</var>    (b) The council may by ordinance adopt regulations consistent with this section to <br/>
<a id="pl.133.8"></a><var>133.8</var>make this authority effective, including, at the option of the council, provisions for placing <br/>
<a id="pl.133.9"></a><var>133.9</var>primary responsibility upon the property owner or occupant to do the work personally <br/>
<a id="pl.133.10"></a><var>133.10</var>(except in the case of street sprinkling or other dust treatment, alley repair, tree trimming, <br/>
<a id="pl.133.11"></a><var>133.11</var>care, and removal or the operation of a street lighting system) upon notice before the work <br/>
<a id="pl.133.12"></a><var>133.12</var>is undertaken, and for collection from the property owner or other person served of the <br/>
<a id="pl.133.13"></a><var>133.13</var>charges when due before unpaid charges are made a special assessment.<br/>
<a id="pl.133.14"></a><var>133.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.43.0"></a><a id="pl.133.15"></a><var>133.15</var>    Sec. 43. Minnesota Statutes 2006, section 469.1813, subdivision 8, is amended to read:<br/>
<a id="pl.133.16"></a><var>133.16</var>    Subd. 8. <b>Limitation on abatements.</b> In any year, the total amount of property <br/>
<a id="pl.133.17"></a><var>133.17</var>taxes abated by a political subdivision under this section may not exceed (1) ten percent <br/>
<a id="pl.133.18"></a><var>133.18</var>of the current levy net tax capacity of the political subdivision for the taxes payable year <br/>
<a id="pl.133.19"></a><var>133.19</var>to which the abatement applies, or (2) $200,000, whichever is greater. The limit under <br/>
<a id="pl.133.20"></a><var>133.20</var>this subdivision does not apply to:<br/>
<a id="pl.133.21"></a><var>133.21</var>    (i) an uncollected abatement from a prior year that is added to the abatement levy; or<br/>
<a id="pl.133.22"></a><var>133.22</var>    (ii) a taxpayer whose real and personal property is subject to valuation under <br/>
<a id="pl.133.23"></a><var>133.23</var>Minnesota Rules, chapter 8100.<br/>
<a id="pl.133.24"></a><var>133.24</var><b>EFFECTIVE DATE.</b>This section is effective for abatement resolutions approved <br/>
<a id="pl.133.25"></a><var>133.25</var>after the day following final enactment.<br/>
<br/>
<a id="bill.6.44.0"></a><a id="pl.133.26"></a><var>133.26</var>    Sec. 44. Laws 2008, chapter 154, article 2, section 11, the effective date, is amended to <br/>
<a id="pl.133.27"></a><var>133.27</var>read:<br/>
<a id="pl.133.28"></a><var>133.28</var><b>EFFECTIVE DATE.</b>The amendments of this section to paragraph (b) and to the <br/>
<a id="pl.133.29"></a><var>133.29</var>class rate decrease and the market value increase of the first tier of class 1c homestead <br/>
<a id="pl.133.30"></a><var>133.30</var>resorts are effective for taxes payable in 2009 and thereafter. The rest of this section is <br/>
<a id="pl.133.31"></a><var>133.31</var>effective for taxes payable in 2010 and thereafter.<br/>
<a id="pl.133.32"></a><var>133.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.45.0"></a><a id="pl.134.1"></a><var>134.1</var>    Sec. 45. Laws 2008, chapter 154, article 2, section 27, is amended to read:<br/>
<a id="pl.134.2"></a><var>134.2</var><b>[360.0427] TAX LEVY MAY BE CERTIFIED BY AN AIRPORT </b><br/>
<a id="pl.134.3"></a><var>134.3</var><b>AUTHORITY. </b><br/>
<a id="pl.134.4"></a><var>134.4</var>    In any year in which it imposes Imposition of a property tax levy under sections <br/>
<statute_ref><a id="pl.134.5"></a><var>134.5</var>275.065
         </statute_ref> to 
         <statute_ref>275.07</statute_ref>, which requires an affirmative vote of at least two-thirds of the members <br/>
<a id="pl.134.6"></a><var>134.6</var>of the authority, an airport authority must submit its proposed levy to the governing body <br/>
<a id="pl.134.7"></a><var>134.7</var>of the municipality that contains the airport. The municipal governing body may approve <br/>
<a id="pl.134.8"></a><var>134.8</var>or modify the amount of the levy, and, when it has determined the amount, the authority <br/>
<a id="pl.134.9"></a><var>134.9</var>must certify to the auditor of the county where the airport is located the amount to be <br/>
<a id="pl.134.10"></a><var>134.10</var>levied on all taxable property within the boundaries of the airport authority. <br/>
<a id="pl.134.11"></a><var>134.11</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2009 and <br/>
<a id="pl.134.12"></a><var>134.12</var>thereafter.<br/>
<br/>
<a id="bill.6.46.0"></a><a id="pl.134.13"></a><var>134.13</var>    Sec. 46. <b>WHITE COMMUNITY HOSPITAL DISTRICT.</b><br/>
<a id="pl.134.14"></a><var>134.14</var>    Subdivision 1. <b>Authorized.</b> Notwithstanding the contiguity requirement in <br/>
<a id="pl.134.15"></a><var>134.15</var>Minnesota Statutes, section 447.31, subdivision 2, any two or more of the following cities <br/>
<a id="pl.134.16"></a><var>134.16</var>and towns in St. Louis County may establish by resolution of their respective governing <br/>
<a id="pl.134.17"></a><var>134.17</var>bodies the White Community Hospital District: the cities of Aurora, Biwabik, and Hoyt <br/>
<a id="pl.134.18"></a><var>134.18</var>Lakes, and the towns of Biwabik, White, and Colvin. The proposed resolution to establish <br/>
<a id="pl.134.19"></a><var>134.19</var>the hospital district must be published and is subject to referendum as provided in section <br/>
<a id="pl.134.20"></a><var>134.20</var>447.31, subdivision 2.<br/>
<a id="pl.134.21"></a><var>134.21</var>    Subd. 2. <b>Powers; may make grants.</b> (a) Except as otherwise provided in this <br/>
<a id="pl.134.22"></a><var>134.22</var>section, the White Community Hospital District shall be organized and have the powers <br/>
<a id="pl.134.23"></a><var>134.23</var>and duties provided in Minnesota Statutes, sections 447.31, except subdivisions 2, 5, and <br/>
<a id="pl.134.24"></a><var>134.24</var>6; 447.32, subdivisions 5, 7, and 9; 447.345; 447.37; and 447.38.<br/>
<a id="pl.134.25"></a><var>134.25</var>    (b) The hospital district may levy taxes as provided in this section to provide funding <br/>
<a id="pl.134.26"></a><var>134.26</var>to make grants to the White Community Hospital and any affiliated health care facility or <br/>
<a id="pl.134.27"></a><var>134.27</var>provider for any purpose authorized for hospital districts in Minnesota Statutes, sections <br/>
<a id="pl.134.28"></a><var>134.28</var>447.31 to 447.38, except 447.331. A grant must not be made under this section until the <br/>
<a id="pl.134.29"></a><var>134.29</var>governing body of the White Community Hospital, and any of its affiliated health care <br/>
<a id="pl.134.30"></a><var>134.30</var>facilities or providers receiving a grant, have entered into a written agreement with the <br/>
<a id="pl.134.31"></a><var>134.31</var>hospital district board stating that the governing body will comply with and is subject to <br/>
<a id="pl.134.32"></a><var>134.32</var>all provisions of the Minnesota open meeting law in Minnesota Statutes, chapter 13D.<br/>
<a id="pl.134.33"></a><var>134.33</var>    Subd. 3. <b>Annexation; detachment.</b> Once the hospital district is established, any <br/>
<a id="pl.134.34"></a><var>134.34</var>other city, town, or unorganized area in St. Louis County may join the hospital district <br/>
<a id="pl.135.1"></a><var>135.1</var>in the same manner provided in subdivision 1 for establishment of the hospital district. <br/>
<a id="pl.135.2"></a><var>135.2</var>A city, town, or unorganized area that is a member of the hospital district may detach <br/>
<a id="pl.135.3"></a><var>135.3</var>from the district in the same manner as it may join. An annexation to or detachment <br/>
<a id="pl.135.4"></a><var>135.4</var>from the hospital district is effective for taxes payable in the following calendar year if <br/>
<a id="pl.135.5"></a><var>135.5</var>the resolution is adopted, or in the case of an unorganized area the petition submitted <br/>
<a id="pl.135.6"></a><var>135.6</var>to the county auditor, before July 1 of the levy year. A resolution adopted or petition <br/>
<a id="pl.135.7"></a><var>135.7</var>submitted after July 1 of any year is effective for the taxes payable the year following <br/>
<a id="pl.135.8"></a><var>135.8</var>the next levy year.<br/>
<a id="pl.135.9"></a><var>135.9</var>    Subd. 4. <b>Unorganized areas.</b> An unorganized area in St. Louis County shall <br/>
<a id="pl.135.10"></a><var>135.10</var>become a member of the hospital district if at least 51 percent of the residents of the <br/>
<a id="pl.135.11"></a><var>135.11</var>unorganized area signed a petition submitted to the hospital district board and the county <br/>
<a id="pl.135.12"></a><var>135.12</var>auditor requesting to participate in the hospital district.<br/>
<a id="pl.135.13"></a><var>135.13</var>    Subd. 5. <b>Hospital district board.</b> The hospital district shall be governed by a <br/>
<a id="pl.135.14"></a><var>135.14</var>hospital board composed of one member of each participating city and town's governing <br/>
<a id="pl.135.15"></a><var>135.15</var>body, appointed by the governing body. If the hospital district only has two members, <br/>
<a id="pl.135.16"></a><var>135.16</var>each member city or town shall appoint two board members. The hospital district board <br/>
<a id="pl.135.17"></a><var>135.17</var>must appoint from among its members a chair, clerk, treasurer, and any other officers the <br/>
<a id="pl.135.18"></a><var>135.18</var>board deems necessary or useful. The St. Louis County Board of Commissioners shall <br/>
<a id="pl.135.19"></a><var>135.19</var>appoint a resident of any unorganized area that is participating in the hospital district. All <br/>
<a id="pl.135.20"></a><var>135.20</var>board members serve at the pleasure of the respective appointing authorities.<br/>
<a id="pl.135.21"></a><var>135.21</var>    Subd. 6. <b>No compensation; expenses.</b>  Board members shall serve without <br/>
<a id="pl.135.22"></a><var>135.22</var>compensation but shall be eligible for per diem and expenses provided by, and at the <br/>
<a id="pl.135.23"></a><var>135.23</var>discretion of, their respective appointing authorities.<br/>
<a id="pl.135.24"></a><var>135.24</var>    Subd. 7. <b>Operating tax levy.</b> The hospital district board may levy a tax as <br/>
<a id="pl.135.25"></a><var>135.25</var>provided in Minnesota Statutes, section 447.34, except as provided in this subdivision. <br/>
<a id="pl.135.26"></a><var>135.26</var>If the hospital district board levies it must be a uniform tax rate levied against the net <br/>
<a id="pl.135.27"></a><var>135.27</var>tax capacity of all taxable properties located within each participating city, town, or <br/>
<a id="pl.135.28"></a><var>135.28</var>unorganized area. The maximum amount that may be levied in the hospital district must <br/>
<a id="pl.135.29"></a><var>135.29</var>not exceed 0.066088 percent of the fully taxable market value of all taxable properties <br/>
<a id="pl.135.30"></a><var>135.30</var>located within each participating city, town, or unorganized area.<br/>
<a id="pl.135.31"></a><var>135.31</var>    Any tax levied by the hospital district is in addition to all other taxes levied on the <br/>
<a id="pl.135.32"></a><var>135.32</var>property, including taxes levied for any other hospital purpose by a participating city <br/>
<a id="pl.135.33"></a><var>135.33</var>or town. The levy must be disregarded in the calculation of all other rate or per capita <br/>
<a id="pl.135.34"></a><var>135.34</var>levy limitations imposed by law.<br/>
<a id="pl.136.1"></a><var>136.1</var><b>EFFECTIVE DATE; NO LOCAL APPROVAL.</b>This section is effective the <br/>
<a id="pl.136.2"></a><var>136.2</var>day following final enactment without local approval under Minnesota Statutes, section <br/>
<a id="pl.136.3"></a><var>136.3</var>645.023, subdivision 1, paragraph (a), for taxes levied in 2008, payable in 2009, and <br/>
<a id="pl.136.4"></a><var>136.4</var>thereafter.<br/>
<br/>
<a id="bill.6.47.0"></a><a id="pl.136.5"></a><var>136.5</var>    Sec. 47. <b>VADNAIS LAKE AREA WATER MANAGEMENT ORGANIZATION; </b><br/>
<a id="pl.136.6"></a><var>136.6</var><b>STORM SEWER UTILITY FEES.</b><br/>
<a id="pl.136.7"></a><var>136.7</var>    Notwithstanding any other law to the contrary and pursuant to joint powers <br/>
<a id="pl.136.8"></a><var>136.8</var>agreements authorized under Minnesota Statutes, sections 103B.211 and 471.59, the <br/>
<a id="pl.136.9"></a><var>136.9</var>Vadnais Lake Area Water Management Organization may certify to the county auditor any <br/>
<a id="pl.136.10"></a><var>136.10</var>fees or charges imposed by the organization under Minnesota Statutes, section 103B.211 <br/>
<a id="pl.136.11"></a><var>136.11</var>or 444.075, and the parcels on which the charges are imposed. The county auditor shall <br/>
<a id="pl.136.12"></a><var>136.12</var>extend the charges on the property tax statements. The amounts must be certified by <br/>
<a id="pl.136.13"></a><var>136.13</var>November 30 to appear on statements for taxes payable in the following year. The charges, <br/>
<a id="pl.136.14"></a><var>136.14</var>if not paid, become delinquent and are subject to the same penalties, the same rate of <br/>
<a id="pl.136.15"></a><var>136.15</var>interest, and become a lien upon the property in the same manner, as real property taxes. <br/>
<a id="pl.136.16"></a><var>136.16</var>The charges shall be paid to the Vadnais Lake Area Water Management Organization by <br/>
<a id="pl.136.17"></a><var>136.17</var>the county auditor in the same manner and at the same time as property taxes. The county <br/>
<a id="pl.136.18"></a><var>136.18</var>auditor may charge the Vadnais Lake Area Water Management Organization a fee in the <br/>
<a id="pl.136.19"></a><var>136.19</var>amount necessary to recover the costs of administering the charges.<br/>
<a id="pl.136.20"></a><var>136.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.48.0"></a><a id="pl.136.21"></a><var>136.21</var>    Sec. 48. <b>CITY OF BROOKLYN CENTER; PARTICIPATION IN CRIME-FREE </b><br/>
<a id="pl.136.22"></a><var>136.22</var><b>MULTIHOUSING PROGRAM.</b><br/>
<a id="pl.136.23"></a><var>136.23</var>    (a) In addition to the requirements of Minnesota Statutes, section 273.128, if <br/>
<a id="pl.136.24"></a><var>136.24</var>property located in the city of Brooklyn Center qualifies under paragraph (b), the owners <br/>
<a id="pl.136.25"></a><var>136.25</var>or managers must complete the three phases of the city's crime-free multihousing program <br/>
<a id="pl.136.26"></a><var>136.26</var>and the qualifying property must be annually certified by the police as participating <br/>
<a id="pl.136.27"></a><var>136.27</var>in the program. If a qualifying property is not certified within one year after it is first <br/>
<a id="pl.136.28"></a><var>136.28</var>determined to be a qualifying property under paragraph (b), or does not annually maintain <br/>
<a id="pl.136.29"></a><var>136.29</var>its certification in the program, the city shall notify the property owner that the qualifying <br/>
<a id="pl.136.30"></a><var>136.30</var>property must comply with the requirements of this section to maintain its classification <br/>
<a id="pl.136.31"></a><var>136.31</var>as class 4d property. If a qualifying property is not in compliance within one year after <br/>
<a id="pl.136.32"></a><var>136.32</var>receiving the notice from the city, the city shall issue a second notice and require the <br/>
<a id="pl.136.33"></a><var>136.33</var>owners to enter into a plan to achieve compliance within one year. If, upon expiration <br/>
<a id="pl.136.34"></a><var>136.34</var>of the one-year time period, the qualifying property has not been certified by the police <br/>
<a id="pl.137.1"></a><var>137.1</var>as completing the program, the city shall notify the commissioner of the Housing <br/>
<a id="pl.137.2"></a><var>137.2</var>Finance Agency and the commissioner shall remove the property from the list of class 4d <br/>
<a id="pl.137.3"></a><var>137.3</var>properties certified to the assessor under Minnesota Statutes, section 273.128, subdivision <br/>
<a id="pl.137.4"></a><var>137.4</var>3. Once removed from the list, the property is not eligible for class 4d classification until <br/>
<a id="pl.137.5"></a><var>137.5</var>it complies with this section and its compliance has been certified to the Housing Finance <br/>
<a id="pl.137.6"></a><var>137.6</var>Agency by the city. Certification to the Housing Finance Agency must be made by May <br/>
<a id="pl.137.7"></a><var>137.7</var>15 to be effective for taxes payable in the following year.<br/>
<a id="pl.137.8"></a><var>137.8</var>    (b) A property is a qualifying property for purposes of this section's requirements if <br/>
<a id="pl.137.9"></a><var>137.9</var>it satisfies each of the following requirements:<br/>
<a id="pl.137.10"></a><var>137.10</var>    (1) the city offers a crime-free multihousing program through its city police;<br/>
<a id="pl.137.11"></a><var>137.11</var>    (2) over the preceding three-year period, the number of police calls to the property <br/>
<a id="pl.137.12"></a><var>137.12</var>exceeded the city's average number of calls for multiunit rental properties for the period <br/>
<a id="pl.137.13"></a><var>137.13</var>by at least 25 percent, adjusted for the number of rental units;<br/>
<a id="pl.137.14"></a><var>137.14</var>    (3) the police department has requested, in writing, the owners or managers of the <br/>
<a id="pl.137.15"></a><var>137.15</var>property to enroll in the crime-free multihousing program and the owners or managers <br/>
<a id="pl.137.16"></a><var>137.16</var>refused or failed to enroll within 60 days after the request, or failed to complete phases <br/>
<a id="pl.137.17"></a><var>137.17</var>one and three within 90 days and all three phases of the program within a one-year time <br/>
<a id="pl.137.18"></a><var>137.18</var>period; and<br/>
<a id="pl.137.19"></a><var>137.19</var>    (4) the governing body of the city, by resolution, determines the property is a <br/>
<a id="pl.137.20"></a><var>137.20</var>qualifying property under clauses (1) to (3).<br/>
<a id="pl.137.21"></a><var>137.21</var>    (c) Calls for police or emergency assistance in response to domestic abuse or <br/>
<a id="pl.137.22"></a><var>137.22</var>medical assistance shall not be counted toward the number of calls in paragraph (b), clause <br/>
<a id="pl.137.23"></a><var>137.23</var>(2). For purposes of this section, "domestic abuse" has the meaning given in Minnesota <br/>
<a id="pl.137.24"></a><var>137.24</var>Statutes, section 518B.01, subdivision 2.<br/>
<a id="pl.137.25"></a><var>137.25</var>    (d) Low-income qualifying rental housing property classified as class 4d property <br/>
<a id="pl.137.26"></a><var>137.26</var>for taxes payable in 2008 must meet the requirements of this section by May 15, 2011, in <br/>
<a id="pl.137.27"></a><var>137.27</var>order to retain the classification for taxes payable in 2012.<br/>
<a id="pl.137.28"></a><var>137.28</var>    (e) Provided that the city utilizes the crime-free multihousing program under this <br/>
<a id="pl.137.29"></a><var>137.29</var>section, on or before January 1, 2017, the city shall make a report to the chairs of the house <br/>
<a id="pl.137.30"></a><var>137.30</var>of representatives and senate tax committees describing the effectiveness of the program.<br/>
<a id="pl.137.31"></a><var>137.31</var><b>EFFECTIVE DATE; LOCAL APPROVAL.</b>This section is effective the day after <br/>
<a id="pl.137.32"></a><var>137.32</var>compliance by the governing body of the city of Brooklyn Center and its chief clerical <br/>
<a id="pl.137.33"></a><var>137.33</var>officer with Minnesota Statutes, section 645.021, subdivisions 2 and 3. This section <br/>
<a id="pl.137.34"></a><var>137.34</var>expires after taxes payable in 2017.<br/>
<br/>
<a id="bill.6.49.0"></a><a id="pl.137.35"></a><var>137.35</var>    Sec. 49. <b>ASSESSMENT OF PROPERTIES OF PURELY PUBLIC CHARITIES.</b><br/>
<a id="pl.138.1"></a><var>138.1</var>    Subdivision 1. <b>Application.</b> (a) To facilitate a review by the 2009 legislature of <br/>
<a id="pl.138.2"></a><var>138.2</var>the property tax exemption for property of nonprofit organizations as purely public <br/>
<a id="pl.138.3"></a><var>138.3</var>charities and the development of standards and criteria for the tax status of these facilities, <br/>
<a id="pl.138.4"></a><var>138.4</var>this section:<br/>
<a id="pl.138.5"></a><var>138.5</var>    (1) requires the commissioner of revenue to conduct an analysis of standards applied <br/>
<a id="pl.138.6"></a><var>138.6</var>to determine the tax status of these organizations; and <br/>
<a id="pl.138.7"></a><var>138.7</var>    (2) prohibits changes in assessment practices and policies regarding the property of <br/>
<a id="pl.138.8"></a><var>138.8</var>these organizations.<br/>
<a id="pl.138.9"></a><var>138.9</var>    (b) The purpose of this study is to allow the legislature to evaluate whether the <br/>
<a id="pl.138.10"></a><var>138.10</var>judicially established rules and the assessment practices and policies in applying those <br/>
<a id="pl.138.11"></a><var>138.11</var>rules to determine the tax status of these properties ensure that public benefits are, at <br/>
<a id="pl.138.12"></a><var>138.12</var>least, commensurate with the costs of the exemption. The legislature does not intend, in <br/>
<a id="pl.138.13"></a><var>138.13</var>requiring this study, to indicate an intention to expand or to narrow the existing rules for <br/>
<a id="pl.138.14"></a><var>138.14</var>exempting institutions of purely public charity.<br/>
<a id="pl.138.15"></a><var>138.15</var>    Subd. 2. <b>Report by commissioner of revenue.</b> (a) The commissioner of revenue <br/>
<a id="pl.138.16"></a><var>138.16</var>shall survey all county assessors on: <br/>
<a id="pl.138.17"></a><var>138.17</var>    (1) the tax status of property of institutions of purely public charity located in the <br/>
<a id="pl.138.18"></a><var>138.18</var>state, including detail on the type of organization and the use of the property; and<br/>
<a id="pl.138.19"></a><var>138.19</var>    (2) their practices and policies in determining the tax status of property of institutions <br/>
<a id="pl.138.20"></a><var>138.20</var>of purely public charity, including the extent to which the assessment practices and <br/>
<a id="pl.138.21"></a><var>138.21</var>policies require the institutions to provide goods or services at free or below market prices <br/>
<a id="pl.138.22"></a><var>138.22</var>and on the treatment of government payments.<br/>
<a id="pl.138.23"></a><var>138.23</var>    (b) The commissioner shall report the findings to the chairs of the house and senate <br/>
<a id="pl.138.24"></a><var>138.24</var>committees with jurisdiction over taxation by February 1, 2009.<br/>
<a id="pl.138.25"></a><var>138.25</var>    Subd. 3. <b>Moratorium on changes in assessment practices.</b> (a) An assessor <br/>
<a id="pl.138.26"></a><var>138.26</var>may not change the current practices or policies used generally in assessing property <br/>
<a id="pl.138.27"></a><var>138.27</var>of institutions of purely public charities.<br/>
<a id="pl.138.28"></a><var>138.28</var>    (b) An assessor may not change the assessment of the taxable status of an existing <br/>
<a id="pl.138.29"></a><var>138.29</var>property of an organization of purely public charity, unless the change is made as a result of <br/>
<a id="pl.138.30"></a><var>138.30</var>a change in ownership, occupancy or use of the facility, or to correct an error. For currently <br/>
<a id="pl.138.31"></a><var>138.31</var>taxable properties, the assessor may change the estimated market value of the property.<br/>
<a id="pl.138.32"></a><var>138.32</var>    (c) This subdivision expires on the earlier of:<br/>
<a id="pl.138.33"></a><var>138.33</var>    (1) the enactment of legislation establishing criteria for the property taxation of <br/>
<a id="pl.138.34"></a><var>138.34</var>purely public charities; or<br/>
<a id="pl.138.35"></a><var>138.35</var>    (2) adjournment of the 2009 regular legislative session to a date in calendar year <br/>
<a id="pl.138.36"></a><var>138.36</var>2010.<br/>
<a id="pl.139.1"></a><var>139.1</var><b>EFFECTIVE DATE.</b>This section is effective for the 2008 assessment, taxes <br/>
<a id="pl.139.2"></a><var>139.2</var>payable in 2009.<br/>
<br/>
<a id="bill.6.50.0"></a><a id="pl.139.3"></a><var>139.3</var>    Sec. 50. <b>FEDERAL AUDIT; SCHOOL DISTRICT LEVY.</b><br/>
<a id="pl.139.4"></a><var>139.4</var>    Subdivision 1. <b>Calculation.</b> The commissioner of education must calculate the total <br/>
<a id="pl.139.5"></a><var>139.5</var>amount of revenue that each school district and intermediate school district needs to <br/>
<a id="pl.139.6"></a><var>139.6</var>replace federal funds that have been disallowed resulting from the settlement of an audit <br/>
<a id="pl.139.7"></a><var>139.7</var>by the federal Office of Inspector General of Local Collaborative Time Study school-based <br/>
<a id="pl.139.8"></a><var>139.8</var>services claimed in Minnesota.<br/>
<a id="pl.139.9"></a><var>139.9</var>    Subd. 2. <b>Levy.</b> A school district may levy a property tax for taxes payable in 2009, <br/>
<a id="pl.139.10"></a><var>139.10</var>2010, and 2011 only, not to exceed one-third of the amount calculated in subdivision 1 in <br/>
<a id="pl.139.11"></a><var>139.11</var>each year. A school district that is a member of an intermediate school district may include <br/>
<a id="pl.139.12"></a><var>139.12</var>in its levy authority under this subdivision the proportionate share of the intermediate <br/>
<a id="pl.139.13"></a><var>139.13</var>school district's loss calculated under subdivision. One-half of the levy for taxes payable <br/>
<a id="pl.139.14"></a><var>139.14</var>in 2009 shall be recognized in fiscal year 2009.<br/>
<a id="pl.139.15"></a><var>139.15</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2009 and <br/>
<a id="pl.139.16"></a><var>139.16</var>thereafter.<br/>
<br/>
<a id="bill.6.51.0"></a><a id="pl.139.17"></a><var>139.17</var>    Sec. 51. <b>COMFORT LAKE-FOREST LAKE WATERSHED DISTRICT.</b><br/>
<a id="pl.139.18"></a><var>139.18</var>    Notwithstanding any law to the contrary, the Comfort Lake-Forest Lake Watershed <br/>
<a id="pl.139.19"></a><var>139.19</var>District established under Minnesota Statutes, chapter 103D, shall be considered a <br/>
<a id="pl.139.20"></a><var>139.20</var>watershed management organization as defined in Minnesota Statutes, section 103B.205, <br/>
<a id="pl.139.21"></a><var>139.21</var>subdivision 13. The Comfort Lake-Forest Lake Watershed District shall manage or plan <br/>
<a id="pl.139.22"></a><var>139.22</var>for the management of surface water within the watershed district boundary in Chisago <br/>
<a id="pl.139.23"></a><var>139.23</var>and Washington Counties as it existed on April 1, 2008, through the authorities contained <br/>
<a id="pl.139.24"></a><var>139.24</var>in Minnesota Statutes, sections 103B.205 to 103B.255 and chapter 103D.<br/>
<a id="pl.139.25"></a><var>139.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.52.0"></a><a id="pl.139.26"></a><var>139.26</var>    Sec. 52. <b> REPEALER.</b><br/>
<a id="pl.139.27"></a><var>139.27</var>(a) Minnesota Statutes 2006, section 272.027, subdivision 3, is repealed.<br/>
<a id="pl.139.28"></a><var>139.28</var>(b) Minnesota Statutes 2006, section 273.11, subdivision 14, is repealed.<br/>
<a id="pl.139.29"></a><var>139.29</var>(c) Minnesota Statutes 2006, section 273.111, subdivision 6, is repealed.<br/>
<a id="pl.139.30"></a><var>139.30</var><b>EFFECTIVE DATE.</b>Paragraphs (a) and (b) are effective for taxes payable in 2009 <br/>
<a id="pl.139.31"></a><var>139.31</var>and thereafter. Paragraph (c) is effective for taxes payable in 2010 and thereafter.<br/>
<br/>
<a id="bill.7.0.0"></a>

<a id="bill.7.1.0"></a><a id="pl.140.3"></a><var>140.3</var>    Section 1. Minnesota Statutes 2006, section 297A.67, subdivision 28, is amended to <br/>
<a id="pl.140.4"></a><var>140.4</var>read:<br/>
<a id="pl.140.5"></a><var>140.5</var>    Subd. 28. <b>Ambulance supplies, parts, and equipment.</b> The following sales to or <br/>
<a id="pl.140.6"></a><var>140.6</var>use by an ambulance service licensed under section 
         <statute_ref>144E.10</statute_ref> are exempt: <br/>
<a id="pl.140.7"></a><var>140.7</var>    (1) supplies and equipment used to provide medical care; and<br/>
<a id="pl.140.8"></a><var>140.8</var>    (2) repair and replacement parts for ambulances and vehicles equipped and <br/>
<a id="pl.140.9"></a><var>140.9</var>specifically intended for emergency response.<br/>
<a id="pl.140.10"></a><var>140.10</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.140.11"></a><var>140.11</var>June 30, 2008.<br/>
<br/>
<a id="bill.7.2.0"></a><a id="pl.140.12"></a><var>140.12</var>    Sec. 2. Minnesota Statutes 2007 Supplement, section 297A.70, subdivision 3, is <br/>
<a id="pl.140.13"></a><var>140.13</var>amended to read:<br/>
<a id="pl.140.14"></a><var>140.14</var>    Subd. 3. <b>Sales of certain goods and services to government.</b> (a) The following <br/>
<a id="pl.140.15"></a><var>140.15</var>sales to or use by the specified governments and political subdivisions of the state are <br/>
<a id="pl.140.16"></a><var>140.16</var>exempt:<br/>
<a id="pl.140.17"></a><var>140.17</var>    (1) repair and replacement parts for emergency rescue vehicles, fire trucks, and <br/>
<a id="pl.140.18"></a><var>140.18</var>fire apparatus to a political subdivision;<br/>
<a id="pl.140.19"></a><var>140.19</var>    (2) machinery and equipment, except for motor vehicles, used directly for mixed <br/>
<a id="pl.140.20"></a><var>140.20</var>municipal solid waste management services at a solid waste disposal facility as defined in <br/>
<a id="pl.140.21"></a><var>140.21</var>section 
         <statute_ref>115A.03, subdivision 10</statute_ref>; <br/>
<a id="pl.140.22"></a><var>140.22</var>    (3) chore and homemaking services to a political subdivision of the state to be <br/>
<a id="pl.140.23"></a><var>140.23</var>provided to elderly or disabled individuals;<br/>
<a id="pl.140.24"></a><var>140.24</var>    (4) telephone services to the  Office of Enterprise Technology that are used to provide <br/>
<a id="pl.140.25"></a><var>140.25</var>telecommunications services through the enterprise technology revolving fund;<br/>
<a id="pl.140.26"></a><var>140.26</var>    (5) firefighter personal protective equipment as defined in paragraph (b), if purchased <br/>
<a id="pl.140.27"></a><var>140.27</var>or authorized by and for the use of an organized fire department, fire protection district, or <br/>
<a id="pl.140.28"></a><var>140.28</var>fire company regularly charged with the responsibility of providing fire protection to the <br/>
<a id="pl.140.29"></a><var>140.29</var>state or a political subdivision;<br/>
<a id="pl.140.30"></a><var>140.30</var>    (6) bullet-resistant body armor that provides the wearer with ballistic and trauma <br/>
<a id="pl.140.31"></a><var>140.31</var>protection, if purchased by a law enforcement agency of the state or a political subdivision <br/>
<a id="pl.140.32"></a><var>140.32</var>of the state, or a licensed peace officer, as defined in section 
         <statute_ref>626.84, subdivision 1</statute_ref>; <br/>
<a id="pl.140.33"></a><var>140.33</var>    (7) motor vehicles purchased or leased by political subdivisions of the state if the <br/>
<a id="pl.140.34"></a><var>140.34</var>vehicles are exempt from registration under section 
         <statute_ref>168.012, subdivision 1</statute_ref>, paragraph (b), <br/>
<a id="pl.141.1"></a><var>141.1</var>exempt from taxation under section 
         <statute_ref>473.448</statute_ref>, or exempt from the motor vehicle sales tax <br/>
<a id="pl.141.2"></a><var>141.2</var>under section 
         <statute_ref>297B.03</statute_ref>, clause (12); <br/>
<a id="pl.141.3"></a><var>141.3</var>    (8) equipment designed to process, dewater, and recycle biosolids for wastewater <br/>
<a id="pl.141.4"></a><var>141.4</var>treatment facilities of political subdivisions, and materials incidental to installation of <br/>
<a id="pl.141.5"></a><var>141.5</var>that equipment; <br/>
<a id="pl.141.6"></a><var>141.6</var>    (9) sales to a town of gravel and of machinery, equipment, and accessories, except <br/>
<a id="pl.141.7"></a><var>141.7</var>motor vehicles, used exclusively for road and bridge maintenance, and leases by a town of <br/>
<a id="pl.141.8"></a><var>141.8</var>motor vehicles exempt from tax under section 
         <statute_ref>297B.03</statute_ref>, clause (10); and <br/>
<a id="pl.141.9"></a><var>141.9</var>    (10) the removal of trees, bushes, or shrubs for the construction and maintenance <br/>
<a id="pl.141.10"></a><var>141.10</var>of roads, trails, or firebreaks when purchased by an agency of the state or a political <br/>
<a id="pl.141.11"></a><var>141.11</var>subdivision of the state; and<br/>
<a id="pl.141.12"></a><var>141.12</var>    (11) purchases by the Metropolitan Council or the Department of Transportation of <br/>
<a id="pl.141.13"></a><var>141.13</var>vehicles and repair parts to equip operations provided for in section 174.90, including, but <br/>
<a id="pl.141.14"></a><var>141.14</var>not limited to, the Northstar Corridor Rail project.<br/>
<a id="pl.141.15"></a><var>141.15</var>    (b) For purposes of this subdivision, "firefighters personal protective equipment" <br/>
<a id="pl.141.16"></a><var>141.16</var>means helmets, including face shields, chin straps, and neck liners; bunker coats and <br/>
<a id="pl.141.17"></a><var>141.17</var>pants, including pant suspenders; boots; gloves; head covers or hoods; wildfire jackets; <br/>
<a id="pl.141.18"></a><var>141.18</var>protective coveralls; goggles; self-contained breathing apparatus; canister filter masks; <br/>
<a id="pl.141.19"></a><var>141.19</var>personal alert safety systems; spanner belts; optical or thermal imaging search devices; <br/>
<a id="pl.141.20"></a><var>141.20</var>and all safety equipment required by the Occupational Safety and Health Administration.<br/>
<a id="pl.141.21"></a><var>141.21</var>    (c) For purchases of items listed in paragraph (a), clause (11), the tax must be <br/>
<a id="pl.141.22"></a><var>141.22</var>imposed and collected as if the rate under section 297A.62, subdivision 1, applied and <br/>
<a id="pl.141.23"></a><var>141.23</var>then refunded in the manner provided in section 297A.75.<br/>
<a id="pl.141.24"></a><var>141.24</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for sales and purchases <br/>
<a id="pl.141.25"></a><var>141.25</var>made after December 31, 2006.<br/>
<br/>
<a id="bill.7.3.0"></a><a id="pl.141.26"></a><var>141.26</var>    Sec. 3. Minnesota Statutes 2006, section 297A.70, subdivision 8, is amended to read:<br/>
<a id="pl.141.27"></a><var>141.27</var>    Subd. 8. <b>Regionwide public safety radio communication system; products and </b><br/>
<a id="pl.141.28"></a><var>141.28</var><b>services.</b> Products and services including, but not limited to, end user equipment used <br/>
<a id="pl.141.29"></a><var>141.29</var>for construction, ownership, operation, maintenance, and enhancement of the backbone <br/>
<a id="pl.141.30"></a><var>141.30</var>system of the regionwide public safety radio communication system established under <br/>
<a id="pl.141.31"></a><var>141.31</var>sections 
         <statute_ref>403.21</statute_ref> to 
         <statute_ref>403.34 403.40</statute_ref>, are exempt. For purposes of this subdivision, backbone <br/>
<a id="pl.141.32"></a><var>141.32</var>system is defined in section 
         <statute_ref>403.21, subdivision 9</statute_ref>. This subdivision is effective for <br/>
<a id="pl.141.33"></a><var>141.33</var>purchases, sales, storage, use, or consumption for use in the first and second phases of the <br/>
<a id="pl.141.34"></a><var>141.34</var>system, as defined in section 
         <statute_ref>403.21, subdivisions 3, 10, and 11</statute_ref>, and that portion of the <br/>
<a id="pl.141.35"></a><var>141.35</var>third phase of the system that is located in the southeast district of the State Patrol and <br/>
<a id="pl.142.1"></a><var>142.1</var>the counties of Benton, Sherburne, Stearns, and Wright, and that portion of the system <br/>
<a id="pl.142.2"></a><var>142.2</var>that is located in Itasca County.<br/>
<a id="pl.142.3"></a><var>142.3</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.142.4"></a><var>142.4</var>June 30, 2008.<br/>
<br/>
<a id="bill.7.4.0"></a><a id="pl.142.5"></a><var>142.5</var>    Sec. 4. Minnesota Statutes 2006, section 297A.71, subdivision 23, is amended to read:<br/>
<a id="pl.142.6"></a><var>142.6</var>    Subd. 23. <b>Construction materials for qualified low-income housing projects.</b> (a) <br/>
<a id="pl.142.7"></a><var>142.7</var>Purchases of materials and supplies used or consumed in and equipment incorporated into <br/>
<a id="pl.142.8"></a><var>142.8</var>the construction, improvement, or expansion of qualified low-income housing projects are <br/>
<a id="pl.142.9"></a><var>142.9</var>exempt from the tax imposed under this chapter if the owner of the qualified low-income <br/>
<a id="pl.142.10"></a><var>142.10</var>housing project is:<br/>
<a id="pl.142.11"></a><var>142.11</var>    (1) the public housing agency or housing and redevelopment authority of a political <br/>
<a id="pl.142.12"></a><var>142.12</var>subdivision;<br/>
<a id="pl.142.13"></a><var>142.13</var>    (2) an entity exercising the powers of a housing and redevelopment authority within <br/>
<a id="pl.142.14"></a><var>142.14</var>a political subdivision;<br/>
<a id="pl.142.15"></a><var>142.15</var>    (3) a limited partnership in which the sole or managing general partner is an <br/>
<a id="pl.142.16"></a><var>142.16</var>authority under clause (1) or an entity under clause (2) or (4);<br/>
<a id="pl.142.17"></a><var>142.17</var>    (4) a nonprofit corporation subject to the provisions of chapter 317A, and qualifying <br/>
<a id="pl.142.18"></a><var>142.18</var>under section 501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, as amended; or<br/>
<a id="pl.142.19"></a><var>142.19</var>    (5) an owner entity, as defined in Code of Federal Regulations, title 24, part 941.604, <br/>
<a id="pl.142.20"></a><var>142.20</var>for a qualified low-income housing project described in paragraph (b), clause (5).<br/>
<a id="pl.142.21"></a><var>142.21</var>    This exemption applies regardless of whether the purchases are made by the owner <br/>
<a id="pl.142.22"></a><var>142.22</var>of the facility or a contractor.<br/>
<a id="pl.142.23"></a><var>142.23</var>    (b) For purposes of this exemption, "qualified low-income housing project" means:<br/>
<a id="pl.142.24"></a><var>142.24</var>    (1) a housing or mixed use project in which at least 20 percent of the residential units <br/>
<a id="pl.142.25"></a><var>142.25</var>are qualifying low-income rental housing units as defined in section 
         <statute_ref>273.126</statute_ref>; <br/>
<a id="pl.142.26"></a><var>142.26</var>    (2) a federally assisted low-income housing project financed by a mortgage insured <br/>
<a id="pl.142.27"></a><var>142.27</var>or held by the United States Department of Housing and Urban Development under <br/>
<a id="pl.142.28"></a><var>142.28</var>United States Code, title 12, section 1701s, 1715l(d)(3), 1715l(d)(4), or 1715z-1; United <br/>
<a id="pl.142.29"></a><var>142.29</var>States Code, title 42, section 1437f; the Native American Housing Assistance and <br/>
<a id="pl.142.30"></a><var>142.30</var>Self-Determination Act, United States Code, title 25, section 4101 et seq.; or any similar <br/>
<a id="pl.142.31"></a><var>142.31</var>successor federal low-income housing program;<br/>
<a id="pl.142.32"></a><var>142.32</var>    (3) a qualified low-income housing project as defined in United States Code, title <br/>
<a id="pl.142.33"></a><var>142.33</var>26, section 42(g), meeting all of the requirements for a low-income housing credit under <br/>
<a id="pl.142.34"></a><var>142.34</var>section 42 of the Internal Revenue Code regardless of whether the project actually applies <br/>
<a id="pl.142.35"></a><var>142.35</var>for or receives a low-income housing credit;<br/>
<a id="pl.143.1"></a><var>143.1</var>    (4) a project that will be operated in compliance with Internal Revenue Service <br/>
<a id="pl.143.2"></a><var>143.2</var>revenue procedure 96-32; or<br/>
<a id="pl.143.3"></a><var>143.3</var>    (5) a housing or mixed use project in which all or a portion of the residential units <br/>
<a id="pl.143.4"></a><var>143.4</var>are subject to the requirements of section 5 of the United States Housing Act of 1937.<br/>
<a id="pl.143.5"></a><var>143.5</var>    (c) For a project, a portion of which is not used for low-income housing units, <br/>
<a id="pl.143.6"></a><var>143.6</var>the amount of purchases that are exempt under this subdivision must be determined by <br/>
<a id="pl.143.7"></a><var>143.7</var>multiplying the total purchases, as specified in paragraph (a), by the ratio of:<br/>
<a id="pl.143.8"></a><var>143.8</var>    (1) the total gross square footage of units subject to the income limits under section <br/>
<statute_ref><a id="pl.143.9"></a><var>143.9</var>273.126
         </statute_ref>, the financing for the project, the federal low-income housing tax credit, revenue <br/>
<a id="pl.143.10"></a><var>143.10</var>procedure 96-32, or section 5 of the United States Housing Act of 1937, as applicable <br/>
<a id="pl.143.11"></a><var>143.11</var>to the project; and <br/>
<a id="pl.143.12"></a><var>143.12</var>    (2) the total gross square footage of all units in the project.<br/>
<a id="pl.143.13"></a><var>143.13</var>    (d) The tax must be imposed and collected as if the rate under section 
         <statute_ref>297A.62, <br/>
<a id="pl.143.14"></a><var>143.14</var>subdivision 1
         </statute_ref>, applied, and then refunded in the manner provided in section 
         <statute_ref>297A.75</statute_ref>. <br/>
<a id="pl.143.15"></a><var>143.15</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.143.16"></a><var>143.16</var>June 30, 2009.<br/>
<br/>
<a id="bill.7.5.0"></a><a id="pl.143.17"></a><var>143.17</var>    Sec. 5. Minnesota Statutes 2006, section 297A.71, is amended by adding a subdivision <br/>
<a id="pl.143.18"></a><var>143.18</var>to read:<br/>
<a id="pl.143.19"></a><var>143.19</var>    Subd. 40. <b>Construction materials; Central Corridor light rail transit.</b> Materials <br/>
<a id="pl.143.20"></a><var>143.20</var>and supplies used or consumed in, and equipment incorporated into, the construction <br/>
<a id="pl.143.21"></a><var>143.21</var>or improvement of the Central Corridor light rail transit line and associated facilities <br/>
<a id="pl.143.22"></a><var>143.22</var>including, but not limited to, stations, park-and-ride facilities, and maintenance facilities, <br/>
<a id="pl.143.23"></a><var>143.23</var>are exempt. The tax must be imposed and collected as if the rate under section 297A.62, <br/>
<a id="pl.143.24"></a><var>143.24</var>subdivision 1, applied and then refunded in the manner provided in section 297A.75. <br/>
<a id="pl.143.25"></a><var>143.25</var>Refunds must not be applied for or issued until after July 1, 2009.<br/>
<a id="pl.143.26"></a><var>143.26</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.143.27"></a><var>143.27</var>June 30, 2008.<br/>
<br/>
<a id="bill.7.6.0"></a><a id="pl.143.28"></a><var>143.28</var>    Sec. 6. Minnesota Statutes 2006, section 297A.75, is amended to read:<br/>
<a id="pl.143.29"></a><var>143.29</var><b>297A.75 REFUND; APPROPRIATION.</b><br/>
<a id="pl.143.30"></a><var>143.30</var>    Subdivision 1. <b>Tax collected.</b> The tax on the gross receipts from the sale of the <br/>
<a id="pl.143.31"></a><var>143.31</var>following exempt items must be imposed and collected as if the sale were taxable and the <br/>
<a id="pl.143.32"></a><var>143.32</var>rate under section 
         <statute_ref>297A.62, subdivision 1</statute_ref>, applied. The exempt items include:<br/>
<a id="pl.143.33"></a><var>143.33</var>    (1) capital equipment exempt under section 
         <statute_ref>297A.68, subdivision 5</statute_ref>;<br/>
<a id="pl.144.1"></a><var>144.1</var>    (2) building materials for an agricultural processing facility exempt under section <br/>
<statute_ref><a id="pl.144.2"></a><var>144.2</var>297A.71, subdivision 13
         </statute_ref>;<br/>
<a id="pl.144.3"></a><var>144.3</var>    (3) building materials for mineral production facilities exempt under section <br/>
<statute_ref><a id="pl.144.4"></a><var>144.4</var>297A.71, subdivision 14
         </statute_ref>;<br/>
<a id="pl.144.5"></a><var>144.5</var>    (4) building materials for correctional facilities under section 
         <statute_ref>297A.71, subdivision <br/>
<a id="pl.144.6"></a><var>144.6</var>3
         </statute_ref>;<br/>
<a id="pl.144.7"></a><var>144.7</var>    (5) building materials used in a residence for disabled veterans exempt under section <br/>
<statute_ref><a id="pl.144.8"></a><var>144.8</var>297A.71, subdivision 11
         </statute_ref>;<br/>
<a id="pl.144.9"></a><var>144.9</var>    (6) elevators and building materials exempt under section 
         <statute_ref>297A.71, subdivision 12</statute_ref>;<br/>
<a id="pl.144.10"></a><var>144.10</var>    (7) building materials for the Long Lake Conservation Center exempt under section <br/>
<statute_ref><a id="pl.144.11"></a><var>144.11</var>297A.71, subdivision 17
         </statute_ref>;<br/>
<a id="pl.144.12"></a><var>144.12</var>    (8) materials, supplies, fixtures, furnishings, and equipment for a county law <br/>
<a id="pl.144.13"></a><var>144.13</var>enforcement and family service center under section 
         <statute_ref>297A.71, subdivision 26</statute_ref>;<br/>
<a id="pl.144.14"></a><var>144.14</var>    (9) materials and supplies for qualified low-income housing under section 
         <statute_ref>297A.71, <br/>
<a id="pl.144.15"></a><var>144.15</var>subdivision 23
         </statute_ref>; <br/>
<a id="pl.144.16"></a><var>144.16</var>    (10) materials, supplies, and equipment for municipal electric utility facilities under <br/>
<a id="pl.144.17"></a><var>144.17</var>section 
         <statute_ref>297A.71, subdivision 35</statute_ref>;<br/>
<a id="pl.144.18"></a><var>144.18</var>    (11) equipment and materials used for the generation, transmission, and distribution <br/>
<a id="pl.144.19"></a><var>144.19</var>of electrical energy and an aerial camera package exempt under section 
         <statute_ref>297A.68</statute_ref>, <br/>
<a id="pl.144.20"></a><var>144.20</var>subdivision 37; and<br/>
<a id="pl.144.21"></a><var>144.21</var>    (12) tangible personal property and taxable services and construction materials, <br/>
<a id="pl.144.22"></a><var>144.22</var>supplies, and equipment exempt under section 
         <statute_ref>297A.68</statute_ref>, subdivision 41; <br/>
<a id="pl.144.23"></a><var>144.23</var>    (13) commuter rail vehicle and repair parts under section 297A.70, subdivision <br/>
<a id="pl.144.24"></a><var>144.24</var>3, clause (11); and<br/>
<a id="pl.144.25"></a><var>144.25</var>    (14) materials, supplies, and equipment for construction or improvement of projects <br/>
<a id="pl.144.26"></a><var>144.26</var>and facilities under section 297A.71, subdivision 40.<br/>
<a id="pl.144.27"></a><var>144.27</var>    Subd. 2. <b>Refund; eligible persons.</b> Upon application on forms prescribed by the <br/>
<a id="pl.144.28"></a><var>144.28</var>commissioner, a refund equal to the tax paid on the gross receipts of the exempt items <br/>
<a id="pl.144.29"></a><var>144.29</var>must be paid to the applicant. Only the following persons may apply for the refund:<br/>
<a id="pl.144.30"></a><var>144.30</var>    (1) for subdivision 1, clauses (1) to (3), the applicant must be the purchaser;<br/>
<a id="pl.144.31"></a><var>144.31</var>    (2) for subdivision 1, clauses (4), (7), and (8), the applicant must be the governmental <br/>
<a id="pl.144.32"></a><var>144.32</var>subdivision;<br/>
<a id="pl.144.33"></a><var>144.33</var>    (3) for subdivision 1, clause (5), the applicant must be the recipient of the benefits <br/>
<a id="pl.144.34"></a><var>144.34</var>provided in United States Code, title 38, chapter 21;<br/>
<a id="pl.144.35"></a><var>144.35</var>    (4) for subdivision 1, clause (6), the applicant must be the owner of the homestead <br/>
<a id="pl.144.36"></a><var>144.36</var>property;<br/>
<a id="pl.145.1"></a><var>145.1</var>    (5) for subdivision 1, clause (9), the owner of the qualified low-income housing <br/>
<a id="pl.145.2"></a><var>145.2</var>project; <br/>
<a id="pl.145.3"></a><var>145.3</var>    (6) for subdivision 1, clause (10), the applicant must be a municipal electric utility or <br/>
<a id="pl.145.4"></a><var>145.4</var>a joint venture of municipal electric utilities; and <br/>
<a id="pl.145.5"></a><var>145.5</var>    (7) for subdivision 1, clauses (11) and (12), the owner of the qualifying business; and<br/>
<a id="pl.145.6"></a><var>145.6</var>    (8) for subdivision 1, clauses (13) and (14), the applicant must be the governmental <br/>
<a id="pl.145.7"></a><var>145.7</var>entity that owns or contracts for the project or facility.<br/>
<a id="pl.145.8"></a><var>145.8</var>    Subd. 3. <b>Application.</b> (a) The application must include sufficient information <br/>
<a id="pl.145.9"></a><var>145.9</var>to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, <br/>
<a id="pl.145.10"></a><var>145.10</var>subcontractor, or builder, under subdivision 1, clause (4), (5), (6), (7), (8), (9), (10), <br/>
<a id="pl.145.11"></a><var>145.11</var>(11), or (12), (13), or (14), the contractor, subcontractor, or builder must furnish to the <br/>
<a id="pl.145.12"></a><var>145.12</var>refund applicant a statement including the cost of the exempt items and the taxes paid on <br/>
<a id="pl.145.13"></a><var>145.13</var>the items unless otherwise specifically provided by this subdivision. The provisions of <br/>
<a id="pl.145.14"></a><var>145.14</var>sections 
         <statute_ref>289A.40</statute_ref> and 
         <statute_ref>289A.50</statute_ref> apply to refunds under this section.<br/>
<a id="pl.145.15"></a><var>145.15</var>    (b) An applicant may not file more than two applications per calendar year for <br/>
<a id="pl.145.16"></a><var>145.16</var>refunds for taxes paid on capital equipment exempt under section 
         <statute_ref>297A.68, subdivision 5</statute_ref>.<br/>
<a id="pl.145.17"></a><var>145.17</var>    (c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not <br/>
<a id="pl.145.18"></a><var>145.18</var>exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases <br/>
<a id="pl.145.19"></a><var>145.19</var>of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71, <br/>
<a id="pl.145.20"></a><var>145.20</var>subdivision 40, must not be filed until after June 30, 2009.<br/>
<a id="pl.145.21"></a><var>145.21</var>    Subd. 4. <b>Interest.</b> Interest must be paid on the refund at the rate in section 
         <statute_ref>270C.405</statute_ref> <br/>
<a id="pl.145.22"></a><var>145.22</var>from 90 days after the refund claim is filed with the commissioner for taxes paid under <br/>
<a id="pl.145.23"></a><var>145.23</var>subdivision 1.<br/>
<a id="pl.145.24"></a><var>145.24</var>    Subd. 5. <b>Appropriation.</b> The amount required to make the refunds is annually <br/>
<a id="pl.145.25"></a><var>145.25</var>appropriated to the commissioner.<br/>
<a id="pl.145.26"></a><var>145.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.7.0"></a><a id="pl.145.27"></a><var>145.27</var>    Sec. 7. Minnesota Statutes 2006, section 297A.99, subdivision 1, as amended by Laws <br/>
<a id="pl.145.28"></a><var>145.28</var>2008, chapter 152, article 4, section 1, is amended to read:<br/>
<a id="pl.145.29"></a><var>145.29</var>    Subdivision 1.  <b>Authorization; scope.</b> (a) A political subdivision of this state may <br/>
<a id="pl.145.30"></a><var>145.30</var>impose a general sales tax (1) under section 
         <statute_ref>297A.992</statute_ref>, (2) under section 
         <statute_ref>297A.993</statute_ref>, <br/>
<a id="pl.145.31"></a><var>145.31</var>(3) if permitted by special law enacted prior to May 20, 2008, or (4) if the political <br/>
<a id="pl.145.32"></a><var>145.32</var>subdivision enacted and imposed the tax before the effective date of section 
         <statute_ref>477A.016</statute_ref> and <br/>
<a id="pl.145.33"></a><var>145.33</var>its predecessor provision. <br/>
<a id="pl.146.1"></a><var>146.1</var>    (b) This section governs the imposition of a general sales tax by the political <br/>
<a id="pl.146.2"></a><var>146.2</var>subdivision. The provisions of this section preempt the provisions of any special law: <br/>
<a id="pl.146.3"></a><var>146.3</var>    (1) enacted before June 2, 1997, or <br/>
<a id="pl.146.4"></a><var>146.4</var>    (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law <br/>
<a id="pl.146.5"></a><var>146.5</var>provision from this section's rules by reference. <br/>
<a id="pl.146.6"></a><var>146.6</var>    (c) This section does not apply to or preempt a sales tax on motor vehicles or a <br/>
<a id="pl.146.7"></a><var>146.7</var>special excise tax on motor vehicles.<br/>
<a id="pl.146.8"></a><var>146.8</var>    (d) Until after May 31, 2010, a political subdivision may not advertise, promote, <br/>
<a id="pl.146.9"></a><var>146.9</var>expend funds, or hold a referendum to support imposing a local option sales tax unless <br/>
<a id="pl.146.10"></a><var>146.10</var>it is for extension of an existing tax or the tax was authorized by a special law enacted <br/>
<a id="pl.146.11"></a><var>146.11</var>prior to May 20, 2008.<br/>
<a id="pl.146.12"></a><var>146.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.8.0"></a><a id="pl.146.13"></a><var>146.13</var>    Sec. 8. Minnesota Statutes 2006, section 297B.03, is amended to read:<br/>
<a id="pl.146.14"></a><var>146.14</var><b>297B.03 EXEMPTIONS.</b><br/>
<a id="pl.146.15"></a><var>146.15</var>    There is specifically exempted from the provisions of this chapter and from <br/>
<a id="pl.146.16"></a><var>146.16</var>computation of the amount of tax imposed by it the following:<br/>
<a id="pl.146.17"></a><var>146.17</var>    (1) purchase or use, including use under a lease purchase agreement or installment <br/>
<a id="pl.146.18"></a><var>146.18</var>sales contract made pursuant to section 
         <statute_ref>465.71</statute_ref>, of any motor vehicle by the United States <br/>
<a id="pl.146.19"></a><var>146.19</var>and its agencies and instrumentalities and by any person described in and subject to the <br/>
<a id="pl.146.20"></a><var>146.20</var>conditions provided in section 
         <statute_ref>297A.67, subdivision 11</statute_ref>; <br/>
<a id="pl.146.21"></a><var>146.21</var>    (2) purchase or use of any motor vehicle by any person who was a resident of <br/>
<a id="pl.146.22"></a><var>146.22</var>another state or country at the time of the purchase and who subsequently becomes a <br/>
<a id="pl.146.23"></a><var>146.23</var>resident of Minnesota, provided the purchase occurred more than 60 days prior to the date <br/>
<a id="pl.146.24"></a><var>146.24</var>such person began residing in the state of Minnesota and the motor vehicle was registered <br/>
<a id="pl.146.25"></a><var>146.25</var>in the person's name in the other state or country;<br/>
<a id="pl.146.26"></a><var>146.26</var>    (3) purchase or use of any motor vehicle by any person making a valid election to be <br/>
<a id="pl.146.27"></a><var>146.27</var>taxed under the provisions of section 
         <statute_ref>297A.90</statute_ref>; <br/>
<a id="pl.146.28"></a><var>146.28</var>    (4) purchase or use of any motor vehicle previously registered in the state of <br/>
<a id="pl.146.29"></a><var>146.29</var>Minnesota when such transfer constitutes a transfer within the meaning of section 118, <br/>
<a id="pl.146.30"></a><var>146.30</var>331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal <br/>
<a id="pl.146.31"></a><var>146.31</var>Revenue Code of 1986, as amended through December 31, 1999;<br/>
<a id="pl.146.32"></a><var>146.32</var>    (5) purchase or use of any vehicle owned by a resident of another state and leased <br/>
<a id="pl.146.33"></a><var>146.33</var>to a Minnesota-based private or for-hire carrier for regular use in the transportation of <br/>
<a id="pl.146.34"></a><var>146.34</var>persons or property in interstate commerce provided the vehicle is titled in the state of <br/>
<a id="pl.147.1"></a><var>147.1</var>the owner or secured party, and that state does not impose a sales tax or sales tax on <br/>
<a id="pl.147.2"></a><var>147.2</var>motor vehicles used in interstate commerce;<br/>
<a id="pl.147.3"></a><var>147.3</var>    (6) purchase or use of a motor vehicle by a private nonprofit or public educational <br/>
<a id="pl.147.4"></a><var>147.4</var>institution for use as an instructional aid in automotive training programs operated by the <br/>
<a id="pl.147.5"></a><var>147.5</var>institution. "Automotive training programs" includes motor vehicle body and mechanical <br/>
<a id="pl.147.6"></a><var>147.6</var>repair courses but does not include driver education programs;<br/>
<a id="pl.147.7"></a><var>147.7</var>    (7) purchase of a motor vehicle for use as an ambulance by an ambulance service <br/>
<a id="pl.147.8"></a><var>147.8</var>licensed under section 
         <statute_ref>144E.10</statute_ref>; <br/>
<a id="pl.147.9"></a><var>147.9</var>    (8) purchase of a motor vehicle by or for a public library, as defined in section <br/>
<statute_ref><a id="pl.147.10"></a><var>147.10</var>134.001, subdivision 2
         </statute_ref>, as a bookmobile or library delivery vehicle; <br/>
<a id="pl.147.11"></a><var>147.11</var>    (9) purchase of a ready-mixed concrete truck;<br/>
<a id="pl.147.12"></a><var>147.12</var>    (10) purchase or use of a motor vehicle by a town for use exclusively for road <br/>
<a id="pl.147.13"></a><var>147.13</var>maintenance, including snowplows and dump trucks, but not including automobiles, <br/>
<a id="pl.147.14"></a><var>147.14</var>vans, or pickup trucks;<br/>
<a id="pl.147.15"></a><var>147.15</var>    (11) purchase or use of a motor vehicle by a corporation, society, association, <br/>
<a id="pl.147.16"></a><var>147.16</var>foundation, or institution organized and operated exclusively for charitable, religious, <br/>
<a id="pl.147.17"></a><var>147.17</var>or educational purposes, except a public school, university, or library, but only if the <br/>
<a id="pl.147.18"></a><var>147.18</var>vehicle is:<br/>
<a id="pl.147.19"></a><var>147.19</var>    (i) a truck, as defined in section 
         <statute_ref>168.011</statute_ref>, a bus, as defined in section 
         <statute_ref>168.011</statute_ref>, or a <br/>
<a id="pl.147.20"></a><var>147.20</var>passenger automobile, as defined in section 
         <statute_ref>168.011</statute_ref>, if the automobile is designed and <br/>
<a id="pl.147.21"></a><var>147.21</var>used for carrying more than nine persons including the driver; and <br/>
<a id="pl.147.22"></a><var>147.22</var>    (ii) intended to be used primarily to transport tangible personal property or <br/>
<a id="pl.147.23"></a><var>147.23</var>individuals, other than employees, to whom the organization provides service in <br/>
<a id="pl.147.24"></a><var>147.24</var>performing its charitable, religious, or educational purpose;<br/>
<a id="pl.147.25"></a><var>147.25</var>    (12) purchase of a motor vehicle for use by a transit provider exclusively to provide <br/>
<a id="pl.147.26"></a><var>147.26</var>transit service is exempt if the transit provider is either (i) receiving financial assistance or <br/>
<a id="pl.147.27"></a><var>147.27</var>reimbursement under section 
         <statute_ref>174.24</statute_ref> or 
         <statute_ref>473.384</statute_ref>, or (ii) operating under section 
         <statute_ref>174.29</statute_ref>, <br/>
<statute_ref><a id="pl.147.28"></a><var>147.28</var>473.388
         </statute_ref>, or 
         <statute_ref>473.405</statute_ref>; <br/>
<a id="pl.147.29"></a><var>147.29</var>    (13) purchase or use of a motor vehicle by a qualified business, as defined in section <br/>
<statute_ref><a id="pl.147.30"></a><var>147.30</var>469.310
         </statute_ref>, located in a job opportunity building zone, if the motor vehicle is principally <br/>
<a id="pl.147.31"></a><var>147.31</var>garaged in the job opportunity building zone and is primarily used as part of or in direct <br/>
<a id="pl.147.32"></a><var>147.32</var>support of the person's operations carried on in the job opportunity building zone. The <br/>
<a id="pl.147.33"></a><var>147.33</var>exemption under this clause applies to sales, if the purchase was made and delivery <br/>
<a id="pl.147.34"></a><var>147.34</var>received during the duration of the job opportunity building zone. The exemption under <br/>
<a id="pl.147.35"></a><var>147.35</var>this clause also applies to any local sales and use tax.; and<br/>
<a id="pl.148.1"></a><var>148.1</var>    (14) purchase of a leased vehicle by the lessee who was a participant in a <br/>
<a id="pl.148.2"></a><var>148.2</var>lease-to-own program from a charitable organization that is:<br/>
<a id="pl.148.3"></a><var>148.3</var>    (i) described in section 501(c)(3) of the Internal Revenue Code; and<br/>
<a id="pl.148.4"></a><var>148.4</var>    (ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4.<br/>
<a id="pl.148.5"></a><var>148.5</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.148.6"></a><var>148.6</var>June 30, 2008.<br/>
<br/>
<a id="bill.7.9.0"></a><a id="pl.148.7"></a><var>148.7</var>    Sec. 9. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by <br/>
<a id="pl.148.8"></a><var>148.8</var>Laws 1998, chapter 389, article 8, section 28, is amended to read:<br/>
<a id="pl.148.9"></a><var>148.9</var>    Subd. 3.  <b>Use of revenues.</b> Revenues received from taxes authorized by subdivisions <br/>
<a id="pl.148.10"></a><var>148.10</var>1 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or a <br/>
<a id="pl.148.11"></a><var>148.11</var>portion of the expenses of constructing and operating improving facilities as part of an <br/>
<a id="pl.148.12"></a><var>148.12</var>urban revitalization project in downtown Mankato known as Riverfront 2000. Authorized <br/>
<a id="pl.148.13"></a><var>148.13</var>expenses include, but are not limited to, acquiring property and paying relocation expenses <br/>
<a id="pl.148.14"></a><var>148.14</var>related to the development of Riverfront 2000 and related facilities, and securing or paying <br/>
<a id="pl.148.15"></a><var>148.15</var>debt service on bonds or other obligations issued to finance the construction of Riverfront <br/>
<a id="pl.148.16"></a><var>148.16</var>2000 and related facilities. For purposes of this section, "Riverfront 2000 and related <br/>
<a id="pl.148.17"></a><var>148.17</var>facilities" means a civic-convention center, an arena, a riverfront park, a technology center <br/>
<a id="pl.148.18"></a><var>148.18</var>and related educational facilities, and all publicly owned real or personal property that <br/>
<a id="pl.148.19"></a><var>148.19</var>the governing body of the city determines will be necessary to facilitate the use of these <br/>
<a id="pl.148.20"></a><var>148.20</var>facilities, including but not limited to parking, skyways, pedestrian bridges, lighting, and <br/>
<a id="pl.148.21"></a><var>148.21</var>landscaping. It also includes the performing arts theatre and the Southern Minnesota <br/>
<a id="pl.148.22"></a><var>148.22</var>Women's Hockey Exposition Center, attached to the Mankato Civic Center for use by <br/>
<a id="pl.148.23"></a><var>148.23</var>Minnesota State University, Mankato.<br/>
<a id="pl.148.24"></a><var>148.24</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.148.25"></a><var>148.25</var>the city of Mankato and its chief clerical officer comply with Minnesota Statutes, section <br/>
<a id="pl.148.26"></a><var>148.26</var>645.021, subdivisions 2 and 3, and after compliance with section 15.<br/>
<br/>
<a id="bill.7.10.0"></a><a id="pl.148.27"></a><var>148.27</var>    Sec. 10. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by <br/>
<a id="pl.148.28"></a><var>148.28</var>Laws 2005, First Special Session chapter 3, article 5, section 25, is amended to read:<br/>
<a id="pl.148.29"></a><var>148.29</var>    Subd. 4.  <b>Expiration of taxing authority and expenditure limitation.</b> The <br/>
<a id="pl.148.30"></a><var>148.30</var>authority granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise <br/>
<a id="pl.148.31"></a><var>148.31</var>tax shall expire on December 31, 2015, unless sufficient revenues are not available to <br/>
<a id="pl.148.32"></a><var>148.32</var>defease any bonds or obligations issued to finance construction of Riverfront 2000 and <br/>
<a id="pl.148.33"></a><var>148.33</var>related facilities. If sufficient funds are not available to defease the bonds, the tax expires <br/>
<a id="pl.148.34"></a><var>148.34</var>December 31, 2018, but all revenues from taxes imposed after December 31, 2015, must <br/>
<a id="pl.149.1"></a><var>149.1</var>be used to defease the bonds. The city may, by ordinance, terminate the tax at an earlier <br/>
<a id="pl.149.2"></a><var>149.2</var>date 2022. <br/>
<a id="pl.149.3"></a><var>149.3</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.149.4"></a><var>149.4</var>the city of Mankato and its chief clerical officer comply with Minnesota Statutes, section <br/>
<a id="pl.149.5"></a><var>149.5</var>645.021, subdivisions 2 and 3, and after compliance with section 16.<br/>
<br/>
<a id="bill.7.11.0"></a><a id="pl.149.6"></a><var>149.6</var>    Sec. 11. Laws 1998, chapter 389, article 8, section 45, subdivision 3, is amended to <br/>
<a id="pl.149.7"></a><var>149.7</var>read:<br/>
<a id="pl.149.8"></a><var>149.8</var>    Subd. 3.  <b>Use of revenues.</b> Revenues received from the taxes authorized under <br/>
<a id="pl.149.9"></a><var>149.9</var>subdivision 1 must be used for sanitary sewer separation, wastewater treatment, water <br/>
<a id="pl.149.10"></a><var>149.10</var>system improvements, and harbor refuge development projects. <br/>
<a id="pl.149.11"></a><var>149.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.149.12"></a><var>149.12</var>upon compliance by the city of Two Harbors with Minnesota Statutes, section 645.021, <br/>
<a id="pl.149.13"></a><var>149.13</var>subdivision 3.<br/>
<br/>
<a id="bill.7.12.0"></a><a id="pl.149.14"></a><var>149.14</var>    Sec. 12. Laws 1999, chapter 243, article 4, section 18, subdivision 1, is amended to <br/>
<a id="pl.149.15"></a><var>149.15</var>read:<br/>
<a id="pl.149.16"></a><var>149.16</var>    Subdivision 1. <b>Sales and use tax.</b> Notwithstanding Minnesota Statutes, section <br/>
<statute_ref><a id="pl.149.17"></a><var>149.17</var>297A.48, subdivision 1a
</statute_ref>,
<statute_ref>477A.016</statute_ref>, or any other provision of law, ordinance, or city <br/>
<a id="pl.149.18"></a><var>149.18</var>charter, if approved by the city voters at the first municipal general election held after the <br/>
<a id="pl.149.19"></a><var>149.19</var>date of final enactment of this act or at a special election held November 2, 1999, the city <br/>
<a id="pl.149.20"></a><var>149.20</var>of Proctor may impose by ordinance a sales and use tax of up to one-half of one percent <br/>
<a id="pl.149.21"></a><var>149.21</var>for the purposes specified in subdivision 3. The provisions of Minnesota Statutes, section <br/>
<statute_ref><a id="pl.149.22"></a><var>149.22</var>297A.48 297A.99
</statute_ref>, govern the imposition, administration, collection, and enforcement of <br/>
<a id="pl.149.23"></a><var>149.23</var>the tax authorized under this subdivision.<br/>
<br/>
<a id="bill.7.13.0"></a><a id="pl.149.24"></a><var>149.24</var>    Sec. 13. Laws 1999, chapter 243, article 4, section 18, subdivision 3, is amended to <br/>
<a id="pl.149.25"></a><var>149.25</var>read:<br/>
<a id="pl.149.26"></a><var>149.26</var>    Subd. 3. <b>Use of revenues.</b> (a) Revenues received from taxes authorized by <br/>
<a id="pl.149.27"></a><var>149.27</var>subdivisions 1 and 2 must be used by the city to pay the cost of collecting the taxes and to <br/>
<a id="pl.149.28"></a><var>149.28</var>pay for construction and improvement of the following city facilities:<br/>
<a id="pl.149.29"></a><var>149.29</var>    (1) streets; and <br/>
<a id="pl.149.30"></a><var>149.30</var>    (2) constructing and equipping the Proctor community activity center.<br/>
<a id="pl.149.31"></a><var>149.31</var>    Authorized expenses include, but are not limited to, acquiring property, paying <br/>
<a id="pl.149.32"></a><var>149.32</var>construction and operating expenses related to the development of an authorized facility, <br/>
<a id="pl.149.33"></a><var>149.33</var>and paying debt service on bonds or other obligations, including lease obligations, issued <br/>
<a id="pl.150.1"></a><var>150.1</var>to finance the construction, expansion, or improvement of an authorized facility. The <br/>
<a id="pl.150.2"></a><var>150.2</var>capital expenses for all projects authorized under this paragraph that may be paid with <br/>
<a id="pl.150.3"></a><var>150.3</var>these taxes is limited to $3,600,000, plus an amount equal to the costs related to issuance <br/>
<a id="pl.150.4"></a><var>150.4</var>of the bonds.<br/>
<a id="pl.150.5"></a><var>150.5</var>    (b) Additional revenues received from taxes authorized by subdivision 1, may be <br/>
<a id="pl.150.6"></a><var>150.6</var>used by the city to pay for the following capital improvement projects: public utilities, <br/>
<a id="pl.150.7"></a><var>150.7</var>including water, sanitary sewer, storm sewer, and electric; sidewalks; bikeways and trails; <br/>
<a id="pl.150.8"></a><var>150.8</var>and parks and recreation.<br/>
<a id="pl.150.9"></a><var>150.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.150.10"></a><var>150.10</var>upon compliance by the city of Proctor with Minnesota Statutes, section 645.021, <br/>
<a id="pl.150.11"></a><var>150.11</var>subdivision 3.<br/>
<br/>
<a id="bill.7.14.0"></a><a id="pl.150.12"></a><var>150.12</var>    Sec. 14. Laws 1999, chapter 243, article 4, section 18, subdivision 4, is amended to <br/>
<a id="pl.150.13"></a><var>150.13</var>read:<br/>
<a id="pl.150.14"></a><var>150.14</var>    Subd. 4. <b>Bonding authority.</b> (a) The city may issue bonds under Minnesota <br/>
<a id="pl.150.15"></a><var>150.15</var>Statutes, chapter 475, to finance the capital expenditure and improvement projects <br/>
<a id="pl.150.16"></a><var>150.16</var>described in subdivision 3. An election to approve the bonds under Minnesota Statutes, <br/>
<a id="pl.150.17"></a><var>150.17</var>section 
         <statute_ref>475.58</statute_ref>, is not required.<br/>
<a id="pl.150.18"></a><var>150.18</var>    (b) The issuance of bonds under this subdivision is not subject to Minnesota Statutes, <br/>
<a id="pl.150.19"></a><var>150.19</var>sections 
         <statute_ref>275.60</statute_ref> and 
         <statute_ref>279.61 275.61</statute_ref>.<br/>
<a id="pl.150.20"></a><var>150.20</var>    (c) The bonds are not included in computing any debt limitation applicable to the <br/>
<a id="pl.150.21"></a><var>150.21</var>city, and the levy of taxes under Minnesota Statutes, section 
         <statute_ref>475.61</statute_ref>, to pay principal of <br/>
<a id="pl.150.22"></a><var>150.22</var>and interest on the bonds is not subject to any levy limitation.<br/>
<a id="pl.150.23"></a><var>150.23</var>    (d) For projects described in subdivision 3, paragraph (a), the aggregate principal <br/>
<a id="pl.150.24"></a><var>150.24</var>amount of bonds, plus the aggregate of the taxes used directly to pay eligible capital <br/>
<a id="pl.150.25"></a><var>150.25</var>expenditures and improvements, may not exceed $3,600,000, plus an amount equal to <br/>
<a id="pl.150.26"></a><var>150.26</var>the costs related to issuance of the bonds, including interest on the bonds. For projects <br/>
<a id="pl.150.27"></a><var>150.27</var>described in subdivision 3, paragraph (b), the aggregate principal amount of bonds may <br/>
<a id="pl.150.28"></a><var>150.28</var>not exceed $7,200,000, plus an amount equal to the costs related to issuance of the bonds, <br/>
<a id="pl.150.29"></a><var>150.29</var>including interest on the bonds.<br/>
<a id="pl.150.30"></a><var>150.30</var>    (e) The sales and use and excise taxes authorized in this section may be pledged to <br/>
<a id="pl.150.31"></a><var>150.31</var>and used for the payment of the bonds and any bonds issued to refund them only if the <br/>
<a id="pl.150.32"></a><var>150.32</var>bonds and any refunding bonds are general obligations of the city.<br/>
<a id="pl.150.33"></a><var>150.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.150.34"></a><var>150.34</var>upon compliance by the city of Proctor with Minnesota Statutes, section 645.021, <br/>
<a id="pl.150.35"></a><var>150.35</var>subdivision 3.<br/>
<br/>
<a id="bill.7.15.0"></a><a id="pl.151.1"></a><var>151.1</var>    Sec. 15. <b>CITY OF MANKATO; REVERSE REFERENDUM REQUIRED.</b><br/>
<a id="pl.151.2"></a><var>151.2</var>    If the Mankato city council intends to extend the local sales tax and modify the use <br/>
<a id="pl.151.3"></a><var>151.3</var>of revenues from the tax, authorized under sections 9 and 10, it shall pass a resolution <br/>
<a id="pl.151.4"></a><var>151.4</var>stating the intent. The resolution must be published for two successive weeks in the <br/>
<a id="pl.151.5"></a><var>151.5</var>official newspaper of the city or, if there is no official newspaper, in a newspaper of general <br/>
<a id="pl.151.6"></a><var>151.6</var>circulation in the city, together with a notice fixing a date for a public hearing on the <br/>
<a id="pl.151.7"></a><var>151.7</var>matter. The hearing must be held at least two weeks but not more than four weeks after the <br/>
<a id="pl.151.8"></a><var>151.8</var>first publication of the resolution. Following the public hearing, the city may determine <br/>
<a id="pl.151.9"></a><var>151.9</var>to take no further action or adopt a resolution confirming its intention to exercise the <br/>
<a id="pl.151.10"></a><var>151.10</var>authority. That resolution must also be published in the official newspaper of the city or, if <br/>
<a id="pl.151.11"></a><var>151.11</var>there is no official newspaper, in a newspaper of general circulation in the city. If within <br/>
<a id="pl.151.12"></a><var>151.12</var>30 days after publication of the resolution a petition signed by voters equal in number to <br/>
<a id="pl.151.13"></a><var>151.13</var>ten percent of the votes cast in the city in the last general election requesting a vote on the <br/>
<a id="pl.151.14"></a><var>151.14</var>proposed resolution is filed with the county auditor, the resolution is not effective until it <br/>
<a id="pl.151.15"></a><var>151.15</var>has been submitted to the voters at a general or special election and a majority of votes <br/>
<a id="pl.151.16"></a><var>151.16</var>cast on the question of approving the resolution are in the affirmative. The commissioner <br/>
<a id="pl.151.17"></a><var>151.17</var>of revenue shall prepare a suggested form of question to be presented at the election. This <br/>
<a id="pl.151.18"></a><var>151.18</var>section applies notwithstanding any city charter provision to the contrary.<br/>
<a id="pl.151.19"></a><var>151.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.16.0"></a><a id="pl.151.20"></a><var>151.20</var>    Sec. 16. <b>CITY OF MANKATO, LOCAL TAXES AUTHORIZED.</b><br/>
<a id="pl.151.21"></a><var>151.21</var>    Subdivision 1. <b>Food and beverage tax authorized.</b> Notwithstanding Minnesota <br/>
<a id="pl.151.22"></a><var>151.22</var>Statutes, section 
<statute_ref>477A.016</statute_ref>, or any ordinance, city charter, or other provision of law, the <br/>
<a id="pl.151.23"></a><var>151.23</var>city of Mankato may, by ordinance, impose a sales tax of up to one percent on the gross <br/>
<a id="pl.151.24"></a><var>151.24</var>receipts on all sales of food and beverages by a restaurant or place of refreshment, as <br/>
<a id="pl.151.25"></a><var>151.25</var>defined by resolution of the city, that are located within the city. For purposes of this <br/>
<a id="pl.151.26"></a><var>151.26</var>section, "food and beverages" include retail on-sale of intoxicating liquor and fermented <br/>
<a id="pl.151.27"></a><var>151.27</var>malt beverages.<br/>
<a id="pl.151.28"></a><var>151.28</var>    Subd. 2. <b>Entertainment tax.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.151.29"></a><var>151.29</var><statute_ref>477A.016</statute_ref>, or any ordinance, city charter, or other provision of law, the city of Mankato <br/>
<a id="pl.151.30"></a><var>151.30</var>may, by ordinance, impose a tax of up to one percent on the gross receipts on admissions to <br/>
<a id="pl.151.31"></a><var>151.31</var>an entertainment event located within the city. For purposes of this section "entertainment <br/>
<a id="pl.151.32"></a><var>151.32</var>event" means any event for which persons pay money in order to be admitted to the <br/>
<a id="pl.151.33"></a><var>151.33</var>premises and to be entertained including, but not limited to, theaters, concerts, and <br/>
<a id="pl.151.34"></a><var>151.34</var>sporting events.<br/>
<a id="pl.152.1"></a><var>152.1</var>    Subd. 3. <b>Use of proceeds from authorized taxes.</b> The proceeds of any tax imposed <br/>
<a id="pl.152.2"></a><var>152.2</var>under subdivisions 1 and 2 shall be used by the city to pay all or a portion of the expenses <br/>
<a id="pl.152.3"></a><var>152.3</var>of operation and maintenance of the Riverfront 2000 and related facilities, including a <br/>
<a id="pl.152.4"></a><var>152.4</var>performing arts theatre and the Southern Minnesota Women's Hockey Exposition Center, <br/>
<a id="pl.152.5"></a><var>152.5</var>attached to the Mankato Civic Center for use by Minnesota State University, Mankato. <br/>
<a id="pl.152.6"></a><var>152.6</var>Authorized expenses include securing or paying debt service on bonds or other obligations <br/>
<a id="pl.152.7"></a><var>152.7</var>issued to finance the construction of the facilities.<br/>
<a id="pl.152.8"></a><var>152.8</var>    Subd. 4. <b>Collection, administration, and enforcement.</b> If the city desires, it may <br/>
<a id="pl.152.9"></a><var>152.9</var>enter into an agreement with the commissioner of revenue to administer, collect, and <br/>
<a id="pl.152.10"></a><var>152.10</var>enforce the taxes authorized under subdivisions 1 and 2. If the commissioner agrees <br/>
<a id="pl.152.11"></a><var>152.11</var>to collect the tax, the provisions of Minnesota Statutes, section 297A.99, related to <br/>
<a id="pl.152.12"></a><var>152.12</var>collection, administration, and enforcement apply.<br/>
<a id="pl.152.13"></a><var>152.13</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.152.14"></a><var>152.14</var>the city of Mankato and its chief clerical officer comply with Minnesota Statutes, section <br/>
<a id="pl.152.15"></a><var>152.15</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.7.17.0"></a><a id="pl.152.16"></a><var>152.16</var>    Sec. 17. <b>COOK COUNTY; LODGING AND ADMISSIONS TAXES.</b><br/>
<a id="pl.152.17"></a><var>152.17</var>    Subdivision 1. <b>Lodging tax.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.152.18"></a><var>152.18</var>477A.016, or any other provision of law, ordinance, or city charter, the Board of <br/>
<a id="pl.152.19"></a><var>152.19</var>Commissioners of Cook County may impose, by ordinance, a tax of up to one percent on <br/>
<a id="pl.152.20"></a><var>152.20</var>the gross receipts subject to the lodging tax under Minnesota Statutes, section 469.190. <br/>
<a id="pl.152.21"></a><var>152.21</var>This tax is in addition to any tax imposed under Minnesota Statutes, section 469.190, and <br/>
<a id="pl.152.22"></a><var>152.22</var>the total tax imposed under that section and this provision must not exceed four percent. <br/>
<a id="pl.152.23"></a><var>152.23</var>    Subd. 2. <b>Admissions and recreation tax.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.152.24"></a><var>152.24</var>section 477A.016, or any other provision of law, ordinance, or city charter, the Board of <br/>
<a id="pl.152.25"></a><var>152.25</var>Commissioners of Cook County may impose, by ordinance, a tax of up to three percent on <br/>
<a id="pl.152.26"></a><var>152.26</var>admissions to entertainment and recreational facilities and rental of recreation equipment. <br/>
<a id="pl.152.27"></a><var>152.27</var>    Subd. 3. <b>Use of taxes.</b> The taxes imposed in subdivisions 1 and 2 must be used <br/>
<a id="pl.152.28"></a><var>152.28</var>to fund a new Cook County Event and Visitors Bureau as established by the Board of <br/>
<a id="pl.152.29"></a><var>152.29</var>Commissioners of Cook County. The Board of Commissioners of Cook County must <br/>
<a id="pl.152.30"></a><var>152.30</var>annually review the budget of the Cook County Event and Visitors Bureau. The event and <br/>
<a id="pl.152.31"></a><var>152.31</var>visitors bureau may not receive revenues raised from the taxes imposed in subdivisions 1 <br/>
<a id="pl.152.32"></a><var>152.32</var>and 2 until the board of commissioners approves the annual budget.<br/>
<a id="pl.152.33"></a><var>152.33</var>    Subd. 4. <b>Termination.</b> The taxes imposed in subdivisions 1 and 2 terminate 15 <br/>
<a id="pl.152.34"></a><var>152.34</var>years after they are first imposed.<br/>
<a id="pl.153.1"></a><var>153.1</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases after June <br/>
<a id="pl.153.2"></a><var>153.2</var>30, 2008.<br/>
<br/>
<a id="bill.7.18.0"></a><a id="pl.153.3"></a><var>153.3</var>    Sec. 18. <b>COOK COUNTY; TAXES AUTHORIZED.</b><br/>
<a id="pl.153.4"></a><var>153.4</var>    Subdivision 1. <b>Sales and use tax.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.153.5"></a><var>153.5</var>477A.016, or any other provision of law, ordinance, or city charter, if approved by the <br/>
<a id="pl.153.6"></a><var>153.6</var>voters at a general or special election held before December 31, 2009, Cook County <br/>
<a id="pl.153.7"></a><var>153.7</var>may impose by ordinance a sales and use tax of up to one percent for the purposes <br/>
<a id="pl.153.8"></a><var>153.8</var>specified in subdivision 2. Except as otherwise provided in this section, the provisions <br/>
<a id="pl.153.9"></a><var>153.9</var>of Minnesota Statutes, section 297A.99, govern the imposition of the tax authorized <br/>
<a id="pl.153.10"></a><var>153.10</var>under this subdivision.<br/>
<a id="pl.153.11"></a><var>153.11</var>    Subd. 2. <b>Use of revenues.</b> Revenues received from the tax authorized by <br/>
<a id="pl.153.12"></a><var>153.12</var>subdivision 1 must be used by Cook County to pay the costs of collecting the tax and <br/>
<a id="pl.153.13"></a><var>153.13</var>to pay for the following projects:<br/>
<a id="pl.153.14"></a><var>153.14</var>    (1) construction and improvements to a county community center and recreation <br/>
<a id="pl.153.15"></a><var>153.15</var>area, including, but not limited to, improvements and additions to the skateboard park, <br/>
<a id="pl.153.16"></a><var>153.16</var>hockey rink, ball fields, community center addition, county parking area, tennis courts, <br/>
<a id="pl.153.17"></a><var>153.17</var>and all associated improvements; and<br/>
<a id="pl.153.18"></a><var>153.18</var>    (2) construction and improvements to the Grand Marais Public Library.<br/>
<a id="pl.153.19"></a><var>153.19</var>Authorized expenses include, but are not limited to, paying construction expenses related <br/>
<a id="pl.153.20"></a><var>153.20</var>to these improvements, and paying debt service on bonds or other obligations issued to <br/>
<a id="pl.153.21"></a><var>153.21</var>finance acquisition and construction of these improvements. The total amount of revenues <br/>
<a id="pl.153.22"></a><var>153.22</var>from the taxes in subdivision 1 that may be used to fund these projects is $14,000,000 <br/>
<a id="pl.153.23"></a><var>153.23</var>plus any associated bond costs.<br/>
<a id="pl.153.24"></a><var>153.24</var>    Subd. 3. <b>Bonding authority.</b> Cook County may issue bonds under Minnesota <br/>
<a id="pl.153.25"></a><var>153.25</var>Statutes, chapter 475, to pay capital and administrative expenses for the projects authorized <br/>
<a id="pl.153.26"></a><var>153.26</var>in subdivision 2, in an amount that does not exceed $14,000,000. An election to approve <br/>
<a id="pl.153.27"></a><var>153.27</var>the bonds under Minnesota Statutes, section 475.58, is not required. The issuance of bonds <br/>
<a id="pl.153.28"></a><var>153.28</var>under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61. <br/>
<a id="pl.153.29"></a><var>153.29</var>The debt represented by the bonds is not included in computing any debt limitation <br/>
<a id="pl.153.30"></a><var>153.30</var>applicable to the county, and any levy of taxes under Minnesota Statutes, section 475.61, <br/>
<a id="pl.153.31"></a><var>153.31</var>to pay principal and interest on the bonds is not subject to any levy limitation.<br/>
<a id="pl.153.32"></a><var>153.32</var>    Subd. 4. <b>Termination of tax.</b> The tax imposed under subdivision 1 expires at the <br/>
<a id="pl.153.33"></a><var>153.33</var>later of (1) 20 years or (2) when the county board determines that the amount of revenues <br/>
<a id="pl.153.34"></a><var>153.34</var>received is sufficient to pay for the principal and interest on any bonds or obligation <br/>
<a id="pl.154.1"></a><var>154.1</var>issued to finance the projects in subdivision 2. Any funds remaining after completion of <br/>
<a id="pl.154.2"></a><var>154.2</var>the projects and retirement or redemption of the bonds may be placed in the general fund <br/>
<a id="pl.154.3"></a><var>154.3</var>of the county. The tax imposed under subdivision 1 may expire at an earlier time if the <br/>
<a id="pl.154.4"></a><var>154.4</var>county board so determines by ordinance.<br/>
<a id="pl.154.5"></a><var>154.5</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.154.6"></a><var>154.6</var>Cook County and its chief clerical officer timely comply with Minnesota Statutes, section <br/>
<a id="pl.154.7"></a><var>154.7</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.7.19.0"></a><a id="pl.154.8"></a><var>154.8</var>    Sec. 19. <b>CITY OF CLEARWATER; TAXES AUTHORIZED.</b><br/>
<a id="pl.154.9"></a><var>154.9</var>    Subdivision 1. <b>Sales and use tax.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.154.10"></a><var>154.10</var>477A.016, or any other provision of law, ordinance, or city charter, pursuant to the <br/>
<a id="pl.154.11"></a><var>154.11</var>approval of the voters on November 7, 2006, the city of Clearwater may impose by <br/>
<a id="pl.154.12"></a><var>154.12</var>ordinance a sales and use tax of up to one-half of one percent for the purposes specified in <br/>
<a id="pl.154.13"></a><var>154.13</var>subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota <br/>
<a id="pl.154.14"></a><var>154.14</var>Statutes, section 297A.99, govern the imposition, administration, collection, and <br/>
<a id="pl.154.15"></a><var>154.15</var>enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.154.16"></a><var>154.16</var>    Subd. 2. <b>Excise tax authorized.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.154.17"></a><var>154.17</var>477A.016, or any other provision of law, ordinance, or city charter, the city of Clearwater <br/>
<a id="pl.154.18"></a><var>154.18</var>may impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up <br/>
<a id="pl.154.19"></a><var>154.19</var>to $20 per motor vehicle, as defined by ordinance, purchased or acquired from any person <br/>
<a id="pl.154.20"></a><var>154.20</var>engaged within the city in the business of selling motor vehicles at retail.<br/>
<a id="pl.154.21"></a><var>154.21</var>    Subd. 3. <b>Use of revenues.</b> The proceeds of the tax imposed under this section shall <br/>
<a id="pl.154.22"></a><var>154.22</var>be used to pay for the costs of acquisition, construction, improvement, and development <br/>
<a id="pl.154.23"></a><var>154.23</var>of a pedestrian bridge, and land and buildings for a community and recreation center. The <br/>
<a id="pl.154.24"></a><var>154.24</var>total amount of revenues from the taxes in subdivisions 1 and 2 that may be used to fund <br/>
<a id="pl.154.25"></a><var>154.25</var>these projects is $12,000,000 plus any associated bond costs.<br/>
<a id="pl.154.26"></a><var>154.26</var>    Subd. 4. <b>Bonding authority.</b> The city of Clearwater may issue bonds in an amount <br/>
<a id="pl.154.27"></a><var>154.27</var>not to exceed $12,000,000 under Minnesota Statutes, chapter 475, to finance the capital <br/>
<a id="pl.154.28"></a><var>154.28</var>expenditures and improvements authorized by the referendum under subdivision 1. An <br/>
<a id="pl.154.29"></a><var>154.29</var>election to approve the bonds under Minnesota Statutes, section 475.59, is not required. <br/>
<a id="pl.154.30"></a><var>154.30</var>The issuance of bonds under this subdivision is not subject to Minnesota Statutes, section <br/>
<a id="pl.154.31"></a><var>154.31</var>275.60 or 275.61. The debt represented by the bonds must not be included in computing <br/>
<a id="pl.154.32"></a><var>154.32</var>any debt limitations applicable to the city, and the levy of taxes required by Minnesota <br/>
<a id="pl.154.33"></a><var>154.33</var>Statutes, section 475.61, to pay the principal or any interest on the bonds must not be <br/>
<a id="pl.154.34"></a><var>154.34</var>subject to any levy limitation.<br/>
<a id="pl.155.1"></a><var>155.1</var>    Subd. 5. <b>Termination of tax.</b> The tax authorized under subdivision 1 terminates at <br/>
<a id="pl.155.2"></a><var>155.2</var>the earlier of (1) 20 years after the date of initial imposition of the tax, or (2) when the <br/>
<a id="pl.155.3"></a><var>155.3</var>city council determines that sufficient funds have been raised from the tax to finance the <br/>
<a id="pl.155.4"></a><var>155.4</var>capital and administrative costs of the improvements described in subdivision 3, plus the <br/>
<a id="pl.155.5"></a><var>155.5</var>additional amount needed to pay the costs related to issuance of bonds under subdivision <br/>
<a id="pl.155.6"></a><var>155.6</var>4, including interest on the bonds. Any funds remaining after completion of the projects <br/>
<a id="pl.155.7"></a><var>155.7</var>specified in subdivision 3 and retirement or redemption of the bonds in subdivision 4 may <br/>
<a id="pl.155.8"></a><var>155.8</var>be placed in the general fund of the city. The tax imposed under subdivision 1 may expire <br/>
<a id="pl.155.9"></a><var>155.9</var>at an earlier time if the city so determines by ordinance.<br/>
<a id="pl.155.10"></a><var>155.10</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.155.11"></a><var>155.11</var>governing body of the city of Clearwater with Minnesota Statutes, section 645.021, <br/>
<a id="pl.155.12"></a><var>155.12</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.7.20.0"></a><a id="pl.155.13"></a><var>155.13</var>    Sec. 20. <b>CITY OF NORTH MANKATO; TAXES AUTHORIZED.</b><br/>
<a id="pl.155.14"></a><var>155.14</var>    Subdivision 1. <b>Sales and use tax authorized.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.155.15"></a><var>155.15</var>section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to <br/>
<a id="pl.155.16"></a><var>155.16</var>the approval of the voters on November 7, 2006, the city of North Mankato may impose <br/>
<a id="pl.155.17"></a><var>155.17</var>by ordinance a sales and use tax of one-half of one percent for the purposes specified <br/>
<a id="pl.155.18"></a><var>155.18</var>in subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the <br/>
<a id="pl.155.19"></a><var>155.19</var>imposition, administration, collection, and enforcement of the taxes authorized under <br/>
<a id="pl.155.20"></a><var>155.20</var>this subdivision. <br/>
<a id="pl.155.21"></a><var>155.21</var>    Subd. 2. <b>Use of revenues.</b> Revenues received from the tax authorized by <br/>
<a id="pl.155.22"></a><var>155.22</var>subdivision 1 must be used to pay all or part of the capital costs of the following projects: <br/>
<a id="pl.155.23"></a><var>155.23</var>    (1) the local share of the Trunk Highway 14/County State-Aid Highway 41 <br/>
<a id="pl.155.24"></a><var>155.24</var>interchange project; <br/>
<a id="pl.155.25"></a><var>155.25</var>    (2) development of regional parks and hiking and biking trails;<br/>
<a id="pl.155.26"></a><var>155.26</var>    (3) expansion of the North Mankato Taylor Library;<br/>
<a id="pl.155.27"></a><var>155.27</var>    (4) riverfront redevelopment; and<br/>
<a id="pl.155.28"></a><var>155.28</var>    (5) lake improvement projects.<br/>
<a id="pl.155.29"></a><var>155.29</var>    The total amount of revenues from the tax in subdivision 1 that may be used to fund <br/>
<a id="pl.155.30"></a><var>155.30</var>these projects is $6,000,000 plus any associated bond costs.<br/>
<a id="pl.155.31"></a><var>155.31</var>    Subd. 3. <b>Bonds.</b> (a) The city of North Mankato, pursuant to the approval of the <br/>
<a id="pl.155.32"></a><var>155.32</var>voters at the November 7, 2006 referendum authorizing the imposition of the taxes in <br/>
<a id="pl.155.33"></a><var>155.33</var>this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital and <br/>
<a id="pl.155.34"></a><var>155.34</var>administrative expenses for the projects described in subdivision 2, in an amount that <br/>
<a id="pl.156.1"></a><var>156.1</var>does not exceed $6,000,000. A separate election to approve the bonds under Minnesota <br/>
<a id="pl.156.2"></a><var>156.2</var>Statutes, section 475.58, is not required.<br/>
<a id="pl.156.3"></a><var>156.3</var>    (b) The debt represented by the bonds is not included in computing any debt <br/>
<a id="pl.156.4"></a><var>156.4</var>limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section <br/>
<a id="pl.156.5"></a><var>156.5</var>475.61, to pay principal and interest on the bonds is not subject to any levy limitation.<br/>
<a id="pl.156.6"></a><var>156.6</var>    Subd. 4. <b>Termination of taxes.</b> The tax imposed under subdivision 1 expires <br/>
<a id="pl.156.7"></a><var>156.7</var>when the city council determines that the amount of revenues received from the taxes <br/>
<a id="pl.156.8"></a><var>156.8</var>to pay for the projects under subdivision 2 first equals or exceeds $6,000,000 plus the <br/>
<a id="pl.156.9"></a><var>156.9</var>additional amount needed to pay the costs related to issuance of bonds under subdivision <br/>
<a id="pl.156.10"></a><var>156.10</var>3, including interest on the bonds. Any funds remaining after completion of the projects <br/>
<a id="pl.156.11"></a><var>156.11</var>and retirement or redemption of the bonds shall be placed in a capital facilities and <br/>
<a id="pl.156.12"></a><var>156.12</var>equipment replacement fund of the city. The tax imposed under subdivision 1 may expire <br/>
<a id="pl.156.13"></a><var>156.13</var>at an earlier time if the city so determines by ordinance. <br/>
<a id="pl.156.14"></a><var>156.14</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.156.15"></a><var>156.15</var>governing body of the city of North Mankato with Minnesota Statutes, section 645.021, <br/>
<a id="pl.156.16"></a><var>156.16</var>subdivision 3.<br/>
<br/>
<a id="bill.7.21.0"></a><a id="pl.156.17"></a><var>156.17</var>    Sec. 21. <b>CITY OF WINONA; TAXES AUTHORIZED.</b><br/>
<a id="pl.156.18"></a><var>156.18</var>    Subdivision 1. <b>Sales and use tax.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.156.19"></a><var>156.19</var>477A.016, or any other provision of law, ordinance, or city charter, if approved by the <br/>
<a id="pl.156.20"></a><var>156.20</var>voters at a general or special election held before December 31, 2009, the city of Winona <br/>
<a id="pl.156.21"></a><var>156.21</var>may impose by ordinance a sales and use tax of up to one-half of one percent for the <br/>
<a id="pl.156.22"></a><var>156.22</var>purpose specified in subdivision 2. Except as otherwise provided in this section, the <br/>
<a id="pl.156.23"></a><var>156.23</var>provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, <br/>
<a id="pl.156.24"></a><var>156.24</var>collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.156.25"></a><var>156.25</var>    Subd. 2. <b>Use of revenues.</b> The proceeds of the tax imposed under this section shall <br/>
<a id="pl.156.26"></a><var>156.26</var>be used to pay the city-borne costs for the construction of a street connection from the city <br/>
<a id="pl.156.27"></a><var>156.27</var>of Winona to Minnesota marked State Highways 61 and 43. The construction will provide <br/>
<a id="pl.156.28"></a><var>156.28</var>access to the city's newly built industrial park and additional access to a hospital. The total <br/>
<a id="pl.156.29"></a><var>156.29</var>amount of revenues from the tax in subdivision 1 that may be used to fund this project is <br/>
<a id="pl.156.30"></a><var>156.30</var>$8,000,000 plus any associated bond costs.<br/>
<a id="pl.156.31"></a><var>156.31</var>    Subd. 3. <b>Bonding authority.</b> The city of Winona may issue bonds in an amount <br/>
<a id="pl.156.32"></a><var>156.32</var>not to exceed $8,000,000 under Minnesota Statutes, chapter 475, to finance the capital <br/>
<a id="pl.156.33"></a><var>156.33</var>expenditures under subdivision 2. An election to approve the bonds under Minnesota <br/>
<a id="pl.156.34"></a><var>156.34</var>Statutes, section 475.58, is not required. The issuance of bonds under this subdivision is <br/>
<a id="pl.157.1"></a><var>157.1</var>not subject to Minnesota Statutes, section 275.60 or 275.61. The debt represented by the <br/>
<a id="pl.157.2"></a><var>157.2</var>bonds must not be included in computing any debt limitations applicable to the city, and <br/>
<a id="pl.157.3"></a><var>157.3</var>the levy of taxes required by Minnesota Statutes, section 475.61, to pay the principal or <br/>
<a id="pl.157.4"></a><var>157.4</var>any interest on the bonds must not be subject to any levy limitation.<br/>
<a id="pl.157.5"></a><var>157.5</var>    Subd. 4. <b>Termination of tax.</b> The tax authorized under subdivision 1 terminates <br/>
<a id="pl.157.6"></a><var>157.6</var>at the earlier of: (1) five years after the date of initial imposition of the tax; or (2) when <br/>
<a id="pl.157.7"></a><var>157.7</var>the city council determines that sufficient funds have been raised from the tax to finance <br/>
<a id="pl.157.8"></a><var>157.8</var>the capital and administrative costs of the project described in subdivision 2, plus the <br/>
<a id="pl.157.9"></a><var>157.9</var>additional amount needed to pay the costs related to issuance of bonds under subdivision <br/>
<a id="pl.157.10"></a><var>157.10</var>3, including interest on the bonds. Any funds remaining after completion of the project <br/>
<a id="pl.157.11"></a><var>157.11</var>specified in subdivision 2 and retirement or redemption of the bonds in subdivision 3 may <br/>
<a id="pl.157.12"></a><var>157.12</var>be placed in the general fund of the city. The tax imposed under subdivision 1 may expire <br/>
<a id="pl.157.13"></a><var>157.13</var>at an earlier time if the city so determines by ordinance.<br/>
<a id="pl.157.14"></a><var>157.14</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by <br/>
<a id="pl.157.15"></a><var>157.15</var>the governing body of the city of Winona with Minnesota Statutes, section 645.021, <br/>
<a id="pl.157.16"></a><var>157.16</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.7.22.0"></a><a id="pl.157.17"></a><var>157.17</var>    Sec. 22. <b> REPEALER.</b><br/>
<a id="pl.157.18"></a><var>157.18</var>Laws 2005, First Special Session chapter 3, article 5, section 24, is repealed.<br/>
<a id="pl.157.19"></a><var>157.19</var><b>EFFECTIVE DATE.</b>This section is effective upon enactment of section 9.<br/>
<br/>
<a id="bill.8.0.0"></a>

<a id="bill.8.1.0"></a><a id="pl.157.22"></a><var>157.22</var>    Section 1. Minnesota Statutes 2006, section 289A.20, subdivision 4, as amended by <br/>
<a id="pl.157.23"></a><var>157.23</var>Laws 2008, chapter 154, article 6, section 1, is amended to read:<br/>
<a id="pl.157.24"></a><var>157.24</var>    Subd. 4.  <b>Sales and use tax.</b> (a) The taxes imposed by chapter 297A are due and <br/>
<a id="pl.157.25"></a><var>157.25</var>payable to the commissioner monthly on or before the 20th day of the month following the <br/>
<a id="pl.157.26"></a><var>157.26</var>month in which the taxable event occurred, or following another reporting period as the <br/>
<a id="pl.157.27"></a><var>157.27</var>commissioner prescribes or as allowed under section 
         <statute_ref>289A.18, subdivision 4</statute_ref>, paragraph <br/>
<a id="pl.157.28"></a><var>157.28</var>(f) or (g), except that use taxes due on an annual use tax return as provided under section <br/>
<statute_ref><a id="pl.157.29"></a><var>157.29</var>289A.11, subdivision 1
         </statute_ref>, are payable by April 15 following the close of the calendar year. <br/>
<a id="pl.157.30"></a><var>157.30</var>    (b) A vendor having a liability of $120,000 or more during a fiscal year ending June <br/>
<a id="pl.157.31"></a><var>157.31</var>30 must remit the June liability for the next year in the following manner: <br/>
<a id="pl.157.32"></a><var>157.32</var>    (1) Two business days before June 30 of the year, the vendor must remit 80 90 <br/>
<a id="pl.157.33"></a><var>157.33</var>percent of the estimated June liability to the commissioner. <br/>
<a id="pl.158.1"></a><var>158.1</var>    (2) On or before August 20 of the year, the vendor must pay any additional amount <br/>
<a id="pl.158.2"></a><var>158.2</var>of tax not remitted in June. <br/>
<a id="pl.158.3"></a><var>158.3</var>    (c) A vendor having a liability of: <br/>
<a id="pl.158.4"></a><var>158.4</var>    (1) $20,000 or more in the fiscal year ending June 30, 2005; or <br/>
<a id="pl.158.5"></a><var>158.5</var>    (2) $10,000 or more in the fiscal year ending June 30, 2006, and fiscal years <br/>
<a id="pl.158.6"></a><var>158.6</var>thereafter, <br/>
<a id="pl.158.7"></a><var>158.7</var>must remit all liabilities on returns due for periods beginning in the subsequent calendar <br/>
<a id="pl.158.8"></a><var>158.8</var>year by electronic means on or before the 20th day of the month following the month in <br/>
<a id="pl.158.9"></a><var>158.9</var>which the taxable event occurred, or on or before the 20th day of the month following the <br/>
<a id="pl.158.10"></a><var>158.10</var>month in which the sale is reported under section 
         <statute_ref>289A.18, subdivision 4</statute_ref>, except for 80 90 <br/>
<a id="pl.158.11"></a><var>158.11</var>percent of the estimated June liability, which is due two business days before June 30. The <br/>
<a id="pl.158.12"></a><var>158.12</var>remaining amount of the June liability is due on August 20. <br/>
<a id="pl.158.13"></a><var>158.13</var><b>EFFECTIVE DATE.</b>This section is effective beginning with June 2009 tax <br/>
<a id="pl.158.14"></a><var>158.14</var>liabilities.<br/>
<br/>
<a id="bill.8.2.0"></a><a id="pl.158.15"></a><var>158.15</var>    Sec. 2. Minnesota Statutes 2006, section 289A.60, subdivision 15, as amended by <br/>
<a id="pl.158.16"></a><var>158.16</var>Laws 2008, chapter 154, article 6, section 2, is amended to read:<br/>
<a id="pl.158.17"></a><var>158.17</var>    Subd. 15.  <b>Accelerated payment of June sales tax liability; penalty for </b><br/>
<a id="pl.158.18"></a><var>158.18</var><b>underpayment.</b> For payments made after December 31, 2006, if a vendor is required by <br/>
<a id="pl.158.19"></a><var>158.19</var>law to submit an estimation of June sales tax liabilities and 80 90 percent payment by a <br/>
<a id="pl.158.20"></a><var>158.20</var>certain date, the vendor shall pay a penalty equal to ten percent of the amount of actual <br/>
<a id="pl.158.21"></a><var>158.21</var>June liability required to be paid in June less the amount remitted in June. The penalty <br/>
<a id="pl.158.22"></a><var>158.22</var>must not be imposed, however, if the amount remitted in June equals the lesser of 80 90 <br/>
<a id="pl.158.23"></a><var>158.23</var>percent of the preceding May's liability or 80 90 percent of the average monthly liability <br/>
<a id="pl.158.24"></a><var>158.24</var>for the previous calendar year. <br/>
<a id="pl.158.25"></a><var>158.25</var><b>EFFECTIVE DATE.</b>This section is effective beginning with June 2009 tax <br/>
<a id="pl.158.26"></a><var>158.26</var>liabilities.<br/>
<br/>
<a id="bill.8.3.0"></a><a id="pl.158.27"></a><var>158.27</var>    Sec. 3. Minnesota Statutes 2006, section 297F.09, subdivision 10, as amended by Laws <br/>
<a id="pl.158.28"></a><var>158.28</var>2008, chapter 154, article 6, section 3, is amended to read:<br/>
<a id="pl.158.29"></a><var>158.29</var>    Subd. 10.  <b>Accelerated tax payment; cigarette or tobacco products distributor.</b><br/>
<a id="pl.158.30"></a><var>158.30</var>    A cigarette or tobacco products distributor having a liability of $120,000 or more during a <br/>
<a id="pl.158.31"></a><var>158.31</var>fiscal year ending June 30, shall remit the June liability for the next year in the following <br/>
<a id="pl.158.32"></a><var>158.32</var>manner: <br/>
<a id="pl.159.1"></a><var>159.1</var>    (a) Two business days before June 30 of the year, the distributor shall remit the <br/>
<a id="pl.159.2"></a><var>159.2</var>actual May liability and 80 90 percent of the estimated June liability to the commissioner <br/>
<a id="pl.159.3"></a><var>159.3</var>and file the return in the form and manner prescribed by the commissioner. <br/>
<a id="pl.159.4"></a><var>159.4</var>    (b) On or before August 18 of the year, the distributor shall submit a return showing <br/>
<a id="pl.159.5"></a><var>159.5</var>the actual June liability and pay any additional amount of tax not remitted in June. A <br/>
<a id="pl.159.6"></a><var>159.6</var>penalty is imposed equal to ten percent of the amount of June liability required to be paid <br/>
<a id="pl.159.7"></a><var>159.7</var>in June, less the amount remitted in June. However, the penalty is not imposed if the <br/>
<a id="pl.159.8"></a><var>159.8</var>amount remitted in June equals the lesser of: <br/>
<a id="pl.159.9"></a><var>159.9</var>    (1) 80 90 percent of the actual June liability; or <br/>
<a id="pl.159.10"></a><var>159.10</var>    (2) 80 90 percent of the preceding May's liability. <br/>
<a id="pl.159.11"></a><var>159.11</var><b>EFFECTIVE DATE.</b>This section is effective beginning with June 2009 tax <br/>
<a id="pl.159.12"></a><var>159.12</var>liabilities.<br/>
<br/>
<a id="bill.8.4.0"></a><a id="pl.159.13"></a><var>159.13</var>    Sec. 4. Minnesota Statutes 2006, section 297G.09, subdivision 9, as amended by Laws <br/>
<a id="pl.159.14"></a><var>159.14</var>2008, chapter 154, article 6, section 4, is amended to read:<br/>
<a id="pl.159.15"></a><var>159.15</var>    Subd. 9.  <b>Accelerated tax payment; penalty.</b> A person liable for tax under this <br/>
<a id="pl.159.16"></a><var>159.16</var>chapter having a liability of $120,000 or more during a fiscal year ending June 30, shall <br/>
<a id="pl.159.17"></a><var>159.17</var>remit the June liability for the next year in the following manner: <br/>
<a id="pl.159.18"></a><var>159.18</var>    (a) Two business days before June 30 of the year, the taxpayer shall remit the actual <br/>
<a id="pl.159.19"></a><var>159.19</var>May liability and 80 90 percent of the estimated June liability to the commissioner and file <br/>
<a id="pl.159.20"></a><var>159.20</var>the return in the form and manner prescribed by the commissioner. <br/>
<a id="pl.159.21"></a><var>159.21</var>    (b) On or before August 18 of the year, the taxpayer shall submit a return showing <br/>
<a id="pl.159.22"></a><var>159.22</var>the actual June liability and pay any additional amount of tax not remitted in June. A <br/>
<a id="pl.159.23"></a><var>159.23</var>penalty is imposed equal to ten percent of the amount of June liability required to be paid <br/>
<a id="pl.159.24"></a><var>159.24</var>in June less the amount remitted in June. However, the penalty is not imposed if the <br/>
<a id="pl.159.25"></a><var>159.25</var>amount remitted in June equals the lesser of: <br/>
<a id="pl.159.26"></a><var>159.26</var>    (1) 80 90 percent of the actual June liability; or <br/>
<a id="pl.159.27"></a><var>159.27</var>    (2) 80 90 percent of the preceding May liability. <br/>
<a id="pl.159.28"></a><var>159.28</var><b>EFFECTIVE DATE.</b>This section is effective beginning with June 2009 tax <br/>
<a id="pl.159.29"></a><var>159.29</var>liabilities.<br/>
<br/>
<a id="bill.9.0.0"></a>

<a id="bill.9.1.0"></a><a id="pl.159.32"></a><var>159.32</var>    Section 1. Minnesota Statutes 2006, section 163.051, subdivision 1, is amended to read:<br/>
<a id="pl.160.1"></a><var>160.1</var>    Subdivision 1. <b>Tax authorized.</b> (a) Except as provided in paragraph (b), the board <br/>
<a id="pl.160.2"></a><var>160.2</var>of commissioners of each metropolitan county is authorized to levy a wheelage tax of $5 <br/>
<a id="pl.160.3"></a><var>160.3</var>for the year 1972 and each subsequent year thereafter by resolution on each motor vehicle, <br/>
<a id="pl.160.4"></a><var>160.4</var>except motorcycles as defined in section 
<statute_ref>169.01, subdivision 4</statute_ref>, which that is kept in such <br/>
<a id="pl.160.5"></a><var>160.5</var>county when not in operation and which that is subject to annual registration and taxation <br/>
<a id="pl.160.6"></a><var>160.6</var>under chapter 168. The board may provide by resolution for collection of the wheelage <br/>
<a id="pl.160.7"></a><var>160.7</var>tax by county officials or it may request that the tax be collected by the state registrar of <br/>
<a id="pl.160.8"></a><var>160.8</var>motor vehicles, and the state registrar of motor vehicles shall collect such tax on behalf <br/>
<a id="pl.160.9"></a><var>160.9</var>of the county if requested, as provided in subdivision 2. <br/>
<a id="pl.160.10"></a><var>160.10</var>    (b) The following vehicles are exempt from the wheelage tax: <br/>
<a id="pl.160.11"></a><var>160.11</var>    (1) motorcycles, as defined in section 169.01, subdivision 4; <br/>
<a id="pl.160.12"></a><var>160.12</var>    (2) motorized bicycles, as defined in section 169.01, subdivision 4a; <br/>
<a id="pl.160.13"></a><var>160.13</var>    (3) electric-assisted bicycles, as defined in section 169.01, subdivision 4b; and <br/>
<a id="pl.160.14"></a><var>160.14</var>    (4) motorized foot scooters, as defined in section 169.01, subdivision 4c. <br/>
<br/>
<a id="bill.9.2.0"></a><a id="pl.160.15"></a><var>160.15</var>    Sec. 2. Minnesota Statutes 2006, section 168.012, subdivision 1, is amended to read:<br/>
<a id="pl.160.16"></a><var>160.16</var>    Subdivision 1. <b>Vehicles exempt from tax, fees, or plate display.</b> (a) The following <br/>
<a id="pl.160.17"></a><var>160.17</var>vehicles are exempt from the provisions of this chapter requiring payment of tax and <br/>
<a id="pl.160.18"></a><var>160.18</var>registration fees, except as provided in subdivision 1c:<br/>
<a id="pl.160.19"></a><var>160.19</var>    (1) vehicles owned and used solely in the transaction of official business by the <br/>
<a id="pl.160.20"></a><var>160.20</var>federal government, the state, or any political subdivision;<br/>
<a id="pl.160.21"></a><var>160.21</var>    (2) vehicles owned and used exclusively by educational institutions and used solely <br/>
<a id="pl.160.22"></a><var>160.22</var>in the transportation of pupils to and from those institutions;<br/>
<a id="pl.160.23"></a><var>160.23</var>    (3) vehicles used solely in driver education programs at nonpublic high schools;<br/>
<a id="pl.160.24"></a><var>160.24</var>    (4) vehicles owned by nonprofit charities and used exclusively to transport disabled <br/>
<a id="pl.160.25"></a><var>160.25</var>persons for charitable, religious, or educational purposes;<br/>
<a id="pl.160.26"></a><var>160.26</var>    (5) vehicles owned by nonprofit charities and used exclusively for disaster response <br/>
<a id="pl.160.27"></a><var>160.27</var>and related activities;<br/>
<a id="pl.160.28"></a><var>160.28</var>    (5) ambulances (6) vehicles owned by ambulance services licensed under section <br/>
<statute_ref><a id="pl.160.29"></a><var>160.29</var>144E.10
         </statute_ref>, the general appearance of which is unmistakable that are equipped and <br/>
<a id="pl.160.30"></a><var>160.30</var>specifically intended for emergency response or providing ambulance services; and<br/>
<a id="pl.160.31"></a><var>160.31</var>    (6) (7) vehicles owned by a commercial driving school licensed under section <br/>
<statute_ref><a id="pl.160.32"></a><var>160.32</var>171.34
         </statute_ref>, or an employee of a commercial driving school licensed under section 
         <statute_ref>171.34</statute_ref>, and <br/>
<a id="pl.160.33"></a><var>160.33</var>the vehicle is used exclusively for driver education and training.<br/>
<a id="pl.161.1"></a><var>161.1</var>    (b) Vehicles owned by the federal government, municipal fire apparatuses including <br/>
<a id="pl.161.2"></a><var>161.2</var>fire-suppression support vehicles, police patrols, and ambulances, the general appearance <br/>
<a id="pl.161.3"></a><var>161.3</var>of which is unmistakable, are not required to register or display number plates.<br/>
<a id="pl.161.4"></a><var>161.4</var>    (c) Unmarked vehicles used in general police work, liquor investigations, or arson <br/>
<a id="pl.161.5"></a><var>161.5</var>investigations, and passenger automobiles, pickup trucks, and buses owned or operated by <br/>
<a id="pl.161.6"></a><var>161.6</var>the Department of Corrections, must be registered and must display appropriate license <br/>
<a id="pl.161.7"></a><var>161.7</var>number plates, furnished by the registrar at cost. Original and renewal applications for <br/>
<a id="pl.161.8"></a><var>161.8</var>these license plates authorized for use in general police work and for use by the Department <br/>
<a id="pl.161.9"></a><var>161.9</var>of Corrections must be accompanied by a certification signed by the appropriate chief of <br/>
<a id="pl.161.10"></a><var>161.10</var>police if issued to a police vehicle, the appropriate sheriff if issued to a sheriff's vehicle, <br/>
<a id="pl.161.11"></a><var>161.11</var>the commissioner of corrections if issued to a Department of Corrections vehicle, or the <br/>
<a id="pl.161.12"></a><var>161.12</var>appropriate officer in charge if issued to a vehicle of any other law enforcement agency. <br/>
<a id="pl.161.13"></a><var>161.13</var>The certification must be on a form prescribed by the commissioner and state that the <br/>
<a id="pl.161.14"></a><var>161.14</var>vehicle will be used exclusively for a purpose authorized by this section.<br/>
<a id="pl.161.15"></a><var>161.15</var>    (d) Unmarked vehicles used by the Departments of Revenue and Labor and Industry, <br/>
<a id="pl.161.16"></a><var>161.16</var>fraud unit, in conducting seizures or criminal investigations must be registered and must <br/>
<a id="pl.161.17"></a><var>161.17</var>display passenger vehicle classification license number plates, furnished at cost by the <br/>
<a id="pl.161.18"></a><var>161.18</var>registrar. Original and renewal applications for these passenger vehicle license plates <br/>
<a id="pl.161.19"></a><var>161.19</var>must be accompanied by a certification signed by the commissioner of revenue or the <br/>
<a id="pl.161.20"></a><var>161.20</var>commissioner of labor and industry. The certification must be on a form prescribed by <br/>
<a id="pl.161.21"></a><var>161.21</var>the commissioner and state that the vehicles will be used exclusively for the purposes <br/>
<a id="pl.161.22"></a><var>161.22</var>authorized by this section.<br/>
<a id="pl.161.23"></a><var>161.23</var>    (e) Unmarked vehicles used by the Division of Disease Prevention and Control of the <br/>
<a id="pl.161.24"></a><var>161.24</var>Department of Health must be registered and must display passenger vehicle classification <br/>
<a id="pl.161.25"></a><var>161.25</var>license number plates. These plates must be furnished at cost by the registrar. Original <br/>
<a id="pl.161.26"></a><var>161.26</var>and renewal applications for these passenger vehicle license plates must be accompanied <br/>
<a id="pl.161.27"></a><var>161.27</var>by a certification signed by the commissioner of health. The certification must be on a <br/>
<a id="pl.161.28"></a><var>161.28</var>form prescribed by the commissioner and state that the vehicles will be used exclusively <br/>
<a id="pl.161.29"></a><var>161.29</var>for the official duties of the Division of Disease Prevention and Control.<br/>
<a id="pl.161.30"></a><var>161.30</var>    (f) Unmarked vehicles used by staff of the Gambling Control Board in gambling <br/>
<a id="pl.161.31"></a><var>161.31</var>investigations and reviews must be registered and must display passenger vehicle <br/>
<a id="pl.161.32"></a><var>161.32</var>classification license number plates. These plates must be furnished at cost by the <br/>
<a id="pl.161.33"></a><var>161.33</var>registrar. Original and renewal applications for these passenger vehicle license plates must <br/>
<a id="pl.161.34"></a><var>161.34</var>be accompanied by a certification signed by the board chair. The certification must be on a <br/>
<a id="pl.161.35"></a><var>161.35</var>form prescribed by the commissioner and state that the vehicles will be used exclusively <br/>
<a id="pl.161.36"></a><var>161.36</var>for the official duties of the Gambling Control Board.<br/>
<a id="pl.162.1"></a><var>162.1</var>    (g) All other motor vehicles must be registered and display tax-exempt number <br/>
<a id="pl.162.2"></a><var>162.2</var>plates, furnished by the registrar at cost, except as provided in subdivision 1c. All <br/>
<a id="pl.162.3"></a><var>162.3</var>vehicles required to display tax-exempt number plates must have the name of the state <br/>
<a id="pl.162.4"></a><var>162.4</var>department or political subdivision, nonpublic high school operating a driver education <br/>
<a id="pl.162.5"></a><var>162.5</var>program, or licensed commercial driving school, plainly displayed on both sides of the <br/>
<a id="pl.162.6"></a><var>162.6</var>vehicle; except that each state hospital and institution for persons who are mentally ill <br/>
<a id="pl.162.7"></a><var>162.7</var>and developmentally disabled may have one vehicle without the required identification <br/>
<a id="pl.162.8"></a><var>162.8</var>on the sides of the vehicle, and county social service agencies may have vehicles used <br/>
<a id="pl.162.9"></a><var>162.9</var>for child and vulnerable adult protective services without the required identification on <br/>
<a id="pl.162.10"></a><var>162.10</var>the sides of the vehicle. This identification must be in a color giving contrast with that <br/>
<a id="pl.162.11"></a><var>162.11</var>of the part of the vehicle on which it is placed and must endure throughout the term of <br/>
<a id="pl.162.12"></a><var>162.12</var>the registration. The identification must not be on a removable plate or placard and must <br/>
<a id="pl.162.13"></a><var>162.13</var>be kept clean and visible at all times; except that a removable plate or placard may be <br/>
<a id="pl.162.14"></a><var>162.14</var>utilized on vehicles leased or loaned to a political subdivision or to a nonpublic high <br/>
<a id="pl.162.15"></a><var>162.15</var>school driver education program.<br/>
<br/>
<a id="bill.9.3.0"></a><a id="pl.162.16"></a><var>162.16</var>    Sec. 3. Minnesota Statutes 2006, section 168.012, is amended by adding a subdivision <br/>
<a id="pl.162.17"></a><var>162.17</var>to read:<br/>
<a id="pl.162.18"></a><var>162.18</var>    Subd. 2c. <b>Spotter trucks.</b> Spotter trucks, as defined in section 169.01, subdivision <br/>
<a id="pl.162.19"></a><var>162.19</var>7a, must not be taxed as motor vehicles using the public streets and highways, and are <br/>
<a id="pl.162.20"></a><var>162.20</var>exempt from the provisions of this chapter.<br/>
<a id="pl.162.21"></a><var>162.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.162.22"></a><var>162.22</var>and expires June 30, 2013.<br/>
<br/>
<a id="bill.9.4.0"></a><a id="pl.162.23"></a><var>162.23</var>    Sec. 4. Minnesota Statutes 2006, section 168.013, subdivision 1f, is amended to read:<br/>
<a id="pl.162.24"></a><var>162.24</var>    Subd. 1f. <b>Bus; commuter van.</b> (a) On all intercity buses, the tax during each <br/>
<a id="pl.162.25"></a><var>162.25</var>the first two years of vehicle life shall be based on the gross weight of the vehicle and <br/>
<a id="pl.162.26"></a><var>162.26</var>graduated according to the following schedule:<br/>
<table>
<col width="50px"/>
<col width="42px"/>
<col width="420px"/>
<tr>
<td><a id="pl.162.27"></a><var>162.27</var><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">Gross Weight of Vehicle <span width="2em"></span>Tax <br/>
</td>
</tr>
<tr>
<td><a id="pl.162.28"></a><var>162.28</var><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">Under 6,000 lbs.  <span>
                     							.....
                     						</span>$125 <br/>
</td>
</tr>
<tr>
<td><a id="pl.162.29"></a><var>162.29</var><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">6,000 to 8,000 lbs., incl.  <span>
                     							.....
                     						</span>125 <br/>
</td>
</tr>
<tr>
<td><a id="pl.162.30"></a><var>162.30</var><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">8,001 to 10,000 lbs., incl.  <span>
                     							.....
                     						</span>125 <br/>
</td>
</tr>
<tr>
<td><a id="pl.162.31"></a><var>162.31</var><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">10,001 to 12,000 lbs., incl.  <span>
                     							.....
                     						</span>150 <br/>
</td>
</tr>
<tr>
<td><a id="pl.162.32"></a><var>162.32</var><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">12,001 to 14,000 lbs., incl.  <span>
                     							.....
                     						</span>190 <br/>
</td>
</tr>
<tr>
<td><a id="pl.163.1"></a><var>163.1</var><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">14,001 to 16,000 lbs., incl.  <span>
                     							.....
                     						</span>210 <br/>
</td>
</tr>
<tr>
<td><a id="pl.163.2"></a><var>163.2</var><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">16,001 to 18,000 lbs., incl.  <span>
                     							.....
                     						</span>225 <br/>
</td>
</tr>
<tr>
<td><a id="pl.163.3"></a><var>163.3</var><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">18,001 to 20,000 lbs., incl.  <span>
                     							.....
                     						</span>260 <br/>
</td>
</tr>
<tr>
<td><a id="pl.163.4"></a><var>163.4</var><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">20,001 to 22,000 lbs., incl.  <span>
                     							.....
                     						</span>300 <br/>
</td>
</tr>
<tr>
<td><a id="pl.163.5"></a><var>163.5</var><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">22,001 to 24,000 lbs., incl.  <span>
                     							.....
                     						</span>350 <br/>
</td>
</tr>
<tr>
<td><a id="pl.163.6"></a><var>163.6</var><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">24,001 to 26,000 lbs., incl.  <span>
                     							.....
                     						</span>400 <br/>
</td>
</tr>
<tr>
<td><a id="pl.163.7"></a><var>163.7</var><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">26,001 to 28,000 lbs., incl.  <span>
                     							.....
                     						</span>450 <br/>
</td>
</tr>
<tr>
<td><a id="pl.163.8"></a><var>163.8</var><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">28,001 to 30,000 lbs., incl.  <span>
                     							.....
                     						</span>500 <br/>
</td>
</tr>
<tr>
<td><a id="pl.163.9"></a><var>163.9</var><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">30,001 and over <span>
                     							.....
                     						</span>550 <br/>
</td>
</tr>
</table><a id="pl.163.10"></a><var>163.10</var>    (b) During each of the third and fourth years of vehicle life, the tax shall be 75 <br/>
<a id="pl.163.11"></a><var>163.11</var>percent of the foregoing scheduled tax; during the fifth year of vehicle life, the tax shall be <br/>
<a id="pl.163.12"></a><var>163.12</var>50 percent of the foregoing scheduled tax; during the sixth year of vehicle life, the tax <br/>
<a id="pl.163.13"></a><var>163.13</var>shall be 37-1/2 percent of the foregoing scheduled tax; and during the seventh and each <br/>
<a id="pl.163.14"></a><var>163.14</var>succeeding year of vehicle life, the tax shall be 25 percent of the foregoing scheduled tax; <br/>
<a id="pl.163.15"></a><var>163.15</var>provided that the annual tax paid in any year of its life for an intercity bus shall be not less <br/>
<a id="pl.163.16"></a><var>163.16</var>than $175 for a vehicle of over 25 passenger seating capacity and not less than $125 for a <br/>
<a id="pl.163.17"></a><var>163.17</var>vehicle of 25 passenger and less seating capacity.<br/>
<a id="pl.163.18"></a><var>163.18</var>    (c) On all intracity buses operated by an auto transportation company in the business <br/>
<a id="pl.163.19"></a><var>163.19</var>of transporting persons for compensation as a common carrier and operating within the <br/>
<a id="pl.163.20"></a><var>163.20</var>limits of cities having populations in excess of 200,000 inhabitants, the tax during each <br/>
<a id="pl.163.21"></a><var>163.21</var>year of the vehicle life of each such bus shall be $40; on all of such intracity buses operated <br/>
<a id="pl.163.22"></a><var>163.22</var>in cities having a population of less than 200,000 and more than 70,000 inhabitants, the <br/>
<a id="pl.163.23"></a><var>163.23</var>tax during each year of vehicle life of each bus shall be $10; and on all of such intracity <br/>
<a id="pl.163.24"></a><var>163.24</var>buses operating in cities having a population of less than 70,000 inhabitants, the tax during <br/>
<a id="pl.163.25"></a><var>163.25</var>each year of vehicle life of each bus shall be $2.<br/>
<a id="pl.163.26"></a><var>163.26</var>    (d) On all other buses and commuter vans, as defined in section  
         <statute_ref>168.126</statute_ref>, the tax <br/>
<a id="pl.163.27"></a><var>163.27</var>during each of the first three years of the vehicle life shall be based on the gross weight of <br/>
<a id="pl.163.28"></a><var>163.28</var>the vehicle and graduated according to the following schedule: Where the gross weight <br/>
<a id="pl.163.29"></a><var>163.29</var>of the vehicle is 6,000 pounds or less, $25. Where the gross weight of the vehicle is <br/>
<a id="pl.163.30"></a><var>163.30</var>more than 6,000 pounds, and not more than 8,000 pounds, the tax shall be $25 plus an <br/>
<a id="pl.163.31"></a><var>163.31</var>additional tax of $5 per ton for the ton or major portion in excess of 6,000 pounds. Where <br/>
<a id="pl.163.32"></a><var>163.32</var>the gross weight of the vehicle is more than 8,000 pounds, and not more than 20,000 <br/>
<a id="pl.163.33"></a><var>163.33</var>pounds, the tax shall be $30 plus an additional tax of $10 per ton for each ton or major <br/>
<a id="pl.163.34"></a><var>163.34</var>portion in excess of 8,000 pounds. Where the gross weight of the vehicle is more than <br/>
<a id="pl.164.1"></a><var>164.1</var>20,000 pounds and not more than 24,000 pounds, the tax shall be $90 plus an additional <br/>
<a id="pl.164.2"></a><var>164.2</var>tax of $15 per ton for each ton or major portion in excess of 20,000 pounds. Where the <br/>
<a id="pl.164.3"></a><var>164.3</var>gross weight of the vehicle is more than 24,000 pounds and not more than 28,000 pounds, <br/>
<a id="pl.164.4"></a><var>164.4</var>the tax shall be $120 plus an additional tax of $25 per ton for each ton or major portion <br/>
<a id="pl.164.5"></a><var>164.5</var>in excess of 24,000 pounds. Where the gross weight of the vehicle is more than 28,000 <br/>
<a id="pl.164.6"></a><var>164.6</var>pounds, the tax shall be $170 plus an additional tax of $30 per ton for each ton or major <br/>
<a id="pl.164.7"></a><var>164.7</var>portion in excess of 28,000 pounds. <br/>
<a id="pl.164.8"></a><var>164.8</var>    (e) During the fourth and succeeding years of vehicle life, the tax shall be 80 percent <br/>
<a id="pl.164.9"></a><var>164.9</var>of the foregoing scheduled tax but in no event less than $20 per vehicle.<br/>
<br/>
<a id="bill.9.5.0"></a><a id="pl.164.10"></a><var>164.10</var>    Sec. 5. Minnesota Statutes 2006, section 168A.03, subdivision 1, is amended to read:<br/>
<a id="pl.164.11"></a><var>164.11</var>    Subdivision 1. <b>No certificate issued.</b> The registrar shall not issue a certificate of <br/>
<a id="pl.164.12"></a><var>164.12</var>title for:<br/>
<a id="pl.164.13"></a><var>164.13</var>    (1) a vehicle owned by the United States;<br/>
<a id="pl.164.14"></a><var>164.14</var>    (2) a vehicle owned by a nonresident and not required by law to be registered in <br/>
<a id="pl.164.15"></a><var>164.15</var>this state;<br/>
<a id="pl.164.16"></a><var>164.16</var>    (3) a vehicle owned by a nonresident and regularly engaged in the interstate <br/>
<a id="pl.164.17"></a><var>164.17</var>transportation of persons or property for which a currently effective certificate of title <br/>
<a id="pl.164.18"></a><var>164.18</var>has been issued in another state;<br/>
<a id="pl.164.19"></a><var>164.19</var>    (4) a vehicle moved solely by animal power;<br/>
<a id="pl.164.20"></a><var>164.20</var>    (5) an implement of husbandry;<br/>
<a id="pl.164.21"></a><var>164.21</var>    (6) special mobile equipment;<br/>
<a id="pl.164.22"></a><var>164.22</var>    (7) a self-propelled wheelchair or invalid tricycle;<br/>
<a id="pl.164.23"></a><var>164.23</var>    (8) a trailer (i) having a gross weight of 4,000 pounds or less unless a secured party <br/>
<a id="pl.164.24"></a><var>164.24</var>holds an interest in the trailer or a certificate of title was previously issued by this state or <br/>
<a id="pl.164.25"></a><var>164.25</var>any other state or (ii) designed primarily for agricultural purposes except a recreational <br/>
<a id="pl.164.26"></a><var>164.26</var>vehicle or a manufactured home, both as defined in section 
         <statute_ref>168.011, subdivisions 8 and 25</statute_ref>; <br/>
<a id="pl.164.27"></a><var>164.27</var>    (9) a snowmobile.; and<br/>
<a id="pl.164.28"></a><var>164.28</var>    (10) a spotter truck, as defined in section 169.01, subdivision 7a.<br/>
<a id="pl.164.29"></a><var>164.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.164.30"></a><var>164.30</var>and expires June 30, 2013.<br/>
<br/>
<a id="bill.9.6.0"></a><a id="pl.164.31"></a><var>164.31</var>    Sec. 6. Minnesota Statutes 2006, section 169.01, is amended by adding a subdivision <br/>
<a id="pl.164.32"></a><var>164.32</var>to read:<br/>
<a id="pl.165.1"></a><var>165.1</var>    Subd. 7a. <b>Spotter truck.</b> "Spotter truck" means a truck-tractor with a manufacturer's <br/>
<a id="pl.165.2"></a><var>165.2</var>certificate of origin "not for on road use" specification, used exclusively for staging or <br/>
<a id="pl.165.3"></a><var>165.3</var>shuttling trailers in the course of a truck freight operation or freight shipping operation.<br/>
<a id="pl.165.4"></a><var>165.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.165.5"></a><var>165.5</var>and expires June 30, 2013.<br/>
<br/>
<a id="bill.9.7.0"></a><a id="pl.165.6"></a><var>165.6</var>    Sec. 7. <b>[169.228] SPOTTER TRUCKS.</b><br/>
<a id="pl.165.7"></a><var>165.7</var>    Notwithstanding any other law, a spotter truck may be operated on public streets <br/>
<a id="pl.165.8"></a><var>165.8</var>and highways if:<br/>
<a id="pl.165.9"></a><var>165.9</var>    (1) the operator has the appropriate class of driver's license;<br/>
<a id="pl.165.10"></a><var>165.10</var>    (2) the vehicle complies with the size, weight, and load restrictions under this <br/>
<a id="pl.165.11"></a><var>165.11</var>chapter;<br/>
<a id="pl.165.12"></a><var>165.12</var>    (3) the vehicle meets all inspection requirements under section 169.781; and<br/>
<a id="pl.165.13"></a><var>165.13</var>    (4) the vehicle is operated within (i) a zone of two air miles from the truck freight <br/>
<a id="pl.165.14"></a><var>165.14</var>operation or freight shipping operation where the vehicle is housed, or (ii) directly to and <br/>
<a id="pl.165.15"></a><var>165.15</var>from a repair shop, service station, or fueling station for the purpose of repair, servicing, <br/>
<a id="pl.165.16"></a><var>165.16</var>or refueling.<br/>
<a id="pl.165.17"></a><var>165.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.165.18"></a><var>165.18</var>and expires June 30, 2013.<br/>
<br/>
<a id="bill.9.8.0"></a><a id="pl.165.19"></a><var>165.19</var>    Sec. 8. Minnesota Statutes 2006, section 169.781, subdivision 1, as amended by Laws <br/>
<a id="pl.165.20"></a><var>165.20</var>2008, chapter 287, article 1, section 48, is amended to read:<br/>
<a id="pl.165.21"></a><var>165.21</var>    Subdivision 1.  <b>Definitions.</b> For purposes of sections 
         <statute_ref>169.781</statute_ref> to 
         <statute_ref>169.783</statute_ref>: <br/>
<a id="pl.165.22"></a><var>165.22</var>    (a) "Commercial motor vehicle": <br/>
<a id="pl.165.23"></a><var>165.23</var>    (1) means a motor vehicle or combination of motor vehicles used to transport <br/>
<a id="pl.165.24"></a><var>165.24</var>passengers or property if the motor vehicle: <br/>
<a id="pl.165.25"></a><var>165.25</var>    (i) has a gross vehicle weight of more than 26,000 pounds; <br/>
<a id="pl.165.26"></a><var>165.26</var>    (ii) is a vehicle in a combination of more than 26,000 pounds; <br/>
<a id="pl.165.27"></a><var>165.27</var>    (iii) is a bus; or <br/>
<a id="pl.165.28"></a><var>165.28</var>    (iv) is of any size and is used in the transportation of hazardous materials that are <br/>
<a id="pl.165.29"></a><var>165.29</var>required to be placarded under Code of Federal Regulations, title 49, parts 100-185; and <br/>
<a id="pl.165.30"></a><var>165.30</var>    (2) does not include (i) a school bus or Head Start bus displaying a certificate under <br/>
<a id="pl.165.31"></a><var>165.31</var>section 
         <statute_ref>169.451</statute_ref>, or (ii) a bus operated by the Metropolitan Council or by a local transit <br/>
<a id="pl.165.32"></a><var>165.32</var>commission created in chapter 458A.; and <br/>
<a id="pl.165.33"></a><var>165.33</var>    (3) a spotter truck.<br/>
<a id="pl.165.34"></a><var>165.34</var>    (b) "Commissioner" means the commissioner of public safety. <br/>
<a id="pl.166.1"></a><var>166.1</var>    (c) "Owner" means a person who owns, or has control, under a lease of more than 30 <br/>
<a id="pl.166.2"></a><var>166.2</var>days' duration, of one or more commercial motor vehicles. <br/>
<br/>
<a id="bill.9.9.0"></a><a id="pl.166.3"></a><var>166.3</var>    Sec. 9. Minnesota Statutes 2006, section 169.781, subdivision 2, as amended by Laws <br/>
<a id="pl.166.4"></a><var>166.4</var>2008, chapter 287, article 1, section 48, is amended to read:<br/>
<a id="pl.166.5"></a><var>166.5</var>    Subd. 2.  <b>Inspection required.</b> (a) It is unlawful for a person to operate or permit <br/>
<a id="pl.166.6"></a><var>166.6</var>the operation of: <br/>
<a id="pl.166.7"></a><var>166.7</var>    (1) a commercial motor vehicle registered in Minnesota or a spotter truck; or <br/>
<a id="pl.166.8"></a><var>166.8</var>    (2) special mobile equipment as defined in section 
         <statute_ref>168.011, subdivision 22</statute_ref>, and <br/>
<a id="pl.166.9"></a><var>166.9</var>which is self-propelled, if it is mounted on a commercial motor vehicle chassis, <br/>
<a id="pl.166.10"></a><var>166.10</var>in violation of the requirements of paragraph (b). <br/>
<a id="pl.166.11"></a><var>166.11</var>    (b) A vehicle described in paragraph (a): <br/>
<a id="pl.166.12"></a><var>166.12</var>    (1) must display a valid safety inspection decal issued by an inspector certified <br/>
<a id="pl.166.13"></a><var>166.13</var>by the commissioner; or <br/>
<a id="pl.166.14"></a><var>166.14</var>    (2) must carry (i) proof that the vehicle complies with federal motor vehicle <br/>
<a id="pl.166.15"></a><var>166.15</var>inspection requirements for vehicles in interstate commerce, and (ii) a certificate of <br/>
<a id="pl.166.16"></a><var>166.16</var>compliance with federal requirements issued by the commissioner under subdivision 9. <br/>
<a id="pl.166.17"></a><var>166.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.166.18"></a><var>166.18</var>and expires June 30, 2013.<br/>
<br/>
<a id="bill.9.10.0"></a><a id="pl.166.19"></a><var>166.19</var>    Sec. 10. Minnesota Statutes 2006, section 383A.80, subdivision 4, is amended to read:<br/>
<a id="pl.166.20"></a><var>166.20</var>    Subd. 4. <b>Expiration.</b> The authority to impose the tax under this section expires <br/>
<a id="pl.166.21"></a><var>166.21</var>January 1, 2008 2013.<br/>
<a id="pl.166.22"></a><var>166.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.166.23"></a><var>166.23</var>and the tax may be imposed on or after that date.<br/>
<br/>
<a id="bill.9.11.0"></a><a id="pl.166.24"></a><var>166.24</var>    Sec. 11. Minnesota Statutes 2006, section 383A.81, subdivision 1, is amended to read:<br/>
<a id="pl.166.25"></a><var>166.25</var>    Subdivision 1. <b>Creation.</b> An environmental response fund is created for the <br/>
<a id="pl.166.26"></a><var>166.26</var>purposes specified in this section. The taxes imposed by section 
         <statute_ref>383A.80</statute_ref> must be <br/>
<a id="pl.166.27"></a><var>166.27</var>deposited in the fund. The board of county commissioners shall administer the fund either <br/>
<a id="pl.166.28"></a><var>166.28</var>as a county board, or a housing and redevelopment authority, or a regional rail authority. <br/>
<br/>
<a id="bill.9.12.0"></a><a id="pl.166.29"></a><var>166.29</var>    Sec. 12. Minnesota Statutes 2006, section 383A.81, subdivision 2, is amended to read:<br/>
<a id="pl.166.30"></a><var>166.30</var>    Subd. 2. <b>Uses of fund.</b> (a) The fund created in subdivision 1 must be used for <br/>
<a id="pl.166.31"></a><var>166.31</var>the following purposes:<br/>
<a id="pl.167.1"></a><var>167.1</var>    (1) acquisition through purchase or condemnation of lands or property which are <br/>
<a id="pl.167.2"></a><var>167.2</var>polluted or contaminated with hazardous substances;<br/>
<a id="pl.167.3"></a><var>167.3</var>    (2) paying the costs associated with indemnifying or holding harmless the <br/>
<a id="pl.167.4"></a><var>167.4</var>entity taking title to lands or property from any liability arising out of the ownership, <br/>
<a id="pl.167.5"></a><var>167.5</var>remediation, or use of the land or property;<br/>
<a id="pl.167.6"></a><var>167.6</var>    (3) paying for the costs of remediating the acquired land or property; or<br/>
<a id="pl.167.7"></a><var>167.7</var>    (4) paying the costs associated with remediating lands or property which are polluted <br/>
<a id="pl.167.8"></a><var>167.8</var>or contaminated with hazardous substances; or<br/>
<a id="pl.167.9"></a><var>167.9</var>    (5) paying for the costs associated with improving the property for economic <br/>
<a id="pl.167.10"></a><var>167.10</var>development, recreational, housing, transportation or rail traffic.<br/>
<a id="pl.167.11"></a><var>167.11</var>    (b) No more than three percent of the fund may be used each year for the costs <br/>
<a id="pl.167.12"></a><var>167.12</var>of administration.<br/>
<br/>
<a id="bill.9.13.0"></a><a id="pl.167.13"></a><var>167.13</var>    Sec. 13. Minnesota Statutes 2006, section 383B.80, subdivision 4, is amended to read:<br/>
<a id="pl.167.14"></a><var>167.14</var>    Subd. 4. <b>Expiration.</b> The authority to impose the tax under this section expires <br/>
<a id="pl.167.15"></a><var>167.15</var>January 1, 2008 2013.<br/>
<a id="pl.167.16"></a><var>167.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.167.17"></a><var>167.17</var>and the tax may be imposed on or after that date.<br/>
<br/>
<a id="bill.9.14.0"></a><a id="pl.167.18"></a><var>167.18</var>    Sec. 14. Minnesota Statutes 2006, section 383B.81, subdivision 2, is amended to read:<br/>
<a id="pl.167.19"></a><var>167.19</var>    Subd. 2. <b>Uses of fund.</b> (a) The fund created in subdivision 1 must be used for <br/>
<a id="pl.167.20"></a><var>167.20</var>the following purposes:<br/>
<a id="pl.167.21"></a><var>167.21</var>    (1) acquisition through purchase or condemnation of lands or property which are <br/>
<a id="pl.167.22"></a><var>167.22</var>polluted or contaminated with hazardous substances;<br/>
<a id="pl.167.23"></a><var>167.23</var>    (2) paying the costs associated with indemnifying or holding harmless the <br/>
<a id="pl.167.24"></a><var>167.24</var>entity taking title to lands or property from any liability arising out of the ownership, <br/>
<a id="pl.167.25"></a><var>167.25</var>remediation, or use of the land or property;<br/>
<a id="pl.167.26"></a><var>167.26</var>    (3) paying for the costs of remediating the acquired land or property;<br/>
<a id="pl.167.27"></a><var>167.27</var>    (4) paying the costs associated with remediating lands or property which are polluted <br/>
<a id="pl.167.28"></a><var>167.28</var>or contaminated with hazardous substances; or<br/>
<a id="pl.167.29"></a><var>167.29</var>    (5) paying for the costs associated with improving the property for economic <br/>
<a id="pl.167.30"></a><var>167.30</var>development, recreational, housing, transportation or rail traffic.<br/>
<a id="pl.167.31"></a><var>167.31</var>    (b) No more than three percent of the fund may be used each year for the costs <br/>
<a id="pl.167.32"></a><var>167.32</var>of administration.<br/>
<br/>
<a id="bill.10.0.0"></a>

<a id="bill.10.1.0"></a><a id="pl.168.3"></a><var>168.3</var>    Section 1. Minnesota Statutes 2006, section 298.01, is amended by adding a <br/>
<a id="pl.168.4"></a><var>168.4</var>subdivision to read:<br/>
<a id="pl.168.5"></a><var>168.5</var>    Subd. 9. <b>Other iron bearing material.</b> "Other iron bearing material" means the <br/>
<a id="pl.168.6"></a><var>168.6</var>material described in section 298.405.<br/>
<br/>
<a id="bill.10.2.0"></a><a id="pl.168.7"></a><var>168.7</var>    Sec. 2. Minnesota Statutes 2006, section 298.22, subdivision 2, is amended to read:<br/>
<a id="pl.168.8"></a><var>168.8</var>    Subd. 2. <b>Iron Range Resources and Rehabilitation Board.</b> There is hereby <br/>
<a id="pl.168.9"></a><var>168.9</var>created the Iron Range Resources and Rehabilitation Board, consisting of 13 members, <br/>
<a id="pl.168.10"></a><var>168.10</var>five of whom are state senators appointed by the Subcommittee on Committees of the <br/>
<a id="pl.168.11"></a><var>168.11</var>Rules Committee of the senate, and five of whom are representatives, appointed by the <br/>
<a id="pl.168.12"></a><var>168.12</var>speaker of the house of representatives. The remaining members shall be appointed one <br/>
<a id="pl.168.13"></a><var>168.13</var>each by the senate majority leader, the speaker of the house of representatives, and the <br/>
<a id="pl.168.14"></a><var>168.14</var>governor and must be nonlegislators who reside in a taconite assistance area as defined in <br/>
<a id="pl.168.15"></a><var>168.15</var>section 
         <statute_ref>273.1341</statute_ref>. The members shall be appointed in January of every odd-numbered <br/>
<a id="pl.168.16"></a><var>168.16</var>year, except that the initial nonlegislator members shall be appointed by July 1, 1999, and <br/>
<a id="pl.168.17"></a><var>168.17</var>shall serve until January of the next odd-numbered year. Vacancies on the board shall be <br/>
<a id="pl.168.18"></a><var>168.18</var>filled in the same manner as the original members were chosen. At least a majority of <br/>
<a id="pl.168.19"></a><var>168.19</var>the legislative members of the board shall be elected from state senatorial or legislative <br/>
<a id="pl.168.20"></a><var>168.20</var>districts in which over 50 percent of the residents reside within a taconite assistance area <br/>
<a id="pl.168.21"></a><var>168.21</var>as defined in section 
         <statute_ref>273.1341</statute_ref>. All expenditures and projects made by the commissioner <br/>
<a id="pl.168.22"></a><var>168.22</var>of Iron Range resources and rehabilitation shall be consistent with the priorities <br/>
<a id="pl.168.23"></a><var>168.23</var>established in subdivision 8 and shall first be submitted to the Iron Range Resources and <br/>
<a id="pl.168.24"></a><var>168.24</var>Rehabilitation Board for approval by a majority of the board of expenditures and projects <br/>
<a id="pl.168.25"></a><var>168.25</var>for rehabilitation purposes as provided by this section, and the method, manner, and time <br/>
<a id="pl.168.26"></a><var>168.26</var>of payment of all funds proposed to be disbursed shall be first approved or disapproved by <br/>
<a id="pl.168.27"></a><var>168.27</var>the board. The board shall biennially make its report to the governor and the legislature on <br/>
<a id="pl.168.28"></a><var>168.28</var>or before November 15 of each even-numbered year. The expenses of the board shall be <br/>
<a id="pl.168.29"></a><var>168.29</var>paid by the state from the funds raised pursuant to this section. Members of the board who <br/>
<a id="pl.168.30"></a><var>168.30</var>are legislators may be reimbursed for expenses in the manner provided in sections 3.099, <br/>
<a id="pl.168.31"></a><var>168.31</var>subdivision 1, and 3.101, and may receive per diem payments during the interims between <br/>
<a id="pl.168.32"></a><var>168.32</var>legislative sessions in the manner provided in section 3.099, subdivision 1. Members of <br/>
<a id="pl.168.33"></a><var>168.33</var>the board who are not legislators may receive per diem payments and be reimbursed for <br/>
<a id="pl.168.34"></a><var>168.34</var>expenses at the lowest rate provided for legislative members.<br/>
<br/>
<a id="bill.10.3.0"></a><a id="pl.169.1"></a><var>169.1</var>    Sec. 3. Minnesota Statutes 2006, section 298.22, subdivision 5a, as added by Laws <br/>
<a id="pl.169.2"></a><var>169.2</var>2008, chapter 154, article 8, section 3, is amended to read:<br/>
<a id="pl.169.3"></a><var>169.3</var>    Subd. 5a.  <b>Forest trust.</b> The commissioner, upon the affirmative vote of a majority <br/>
<a id="pl.169.4"></a><var>169.4</var>of the members of the board, may purchase forest lands in the taconite assistance area <br/>
<a id="pl.169.5"></a><var>169.5</var>defined in under section 
         <statute_ref>273.1341</statute_ref> with funds specifically authorized for the purchase. The <br/>
<a id="pl.169.6"></a><var>169.6</var>acquired forest lands must be held in trust for the benefit of the citizens of the taconite <br/>
<a id="pl.169.7"></a><var>169.7</var>assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands shall <br/>
<a id="pl.169.8"></a><var>169.8</var>be managed and developed for recreation and economic development purposes. The <br/>
<a id="pl.169.9"></a><var>169.9</var>commissioner, upon the affirmative vote of a majority of the members of the board, may <br/>
<a id="pl.169.10"></a><var>169.10</var>sell forest lands purchased under this subdivision if the board finds that the sale advances <br/>
<a id="pl.169.11"></a><var>169.11</var>the purposes of the trust. Proceeds derived from the management or sale of the lands and <br/>
<a id="pl.169.12"></a><var>169.12</var>from the sale of timber or removal of gravel or other minerals from these forest lands shall <br/>
<a id="pl.169.13"></a><var>169.13</var>be deposited into an Iron Range Miners' Memorial Forest account that is established within <br/>
<a id="pl.169.14"></a><var>169.14</var>the state financial accounts. Funds may be expended from the account upon approval of a <br/>
<a id="pl.169.15"></a><var>169.15</var>majority of the members of the board to purchase, manage, administer, convey interests <br/>
<a id="pl.169.16"></a><var>169.16</var>in, and improve the forest lands. By majority vote of the members of the board, money in <br/>
<a id="pl.169.17"></a><var>169.17</var>the Iron Range Miners' Memorial Forest account may be transferred into the corpus of the <br/>
<a id="pl.169.18"></a><var>169.18</var>Douglas J. Johnson economic protection trust fund established under sections 
         <statute_ref>298.291</statute_ref> <br/>
<a id="pl.169.19"></a><var>169.19</var>to 
         <statute_ref>298.294</statute_ref>. The property acquired under the authority granted by this subdivision and <br/>
<a id="pl.169.20"></a><var>169.20</var>income derived from the property or the operation or management of the property are <br/>
<a id="pl.169.21"></a><var>169.21</var>exempt from taxation by the state or its political subdivisions while held by the forest trust. <br/>
<a id="pl.169.22"></a><var>169.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.10.4.0"></a><a id="pl.169.23"></a><var>169.23</var>    Sec. 4. Minnesota Statutes 2006, section 298.22, is amended by adding a subdivision <br/>
<a id="pl.169.24"></a><var>169.24</var>to read:<br/>
<a id="pl.169.25"></a><var>169.25</var>    Subd. 12. <b>Data classification.</b> Data collected by the commissioner on any <br/>
<a id="pl.169.26"></a><var>169.26</var>application to determine the eligibility of an applicant for any loan or equity investment <br/>
<a id="pl.169.27"></a><var>169.27</var>made from funds that are available to the commissioner under this section or otherwise <br/>
<a id="pl.169.28"></a><var>169.28</var>by law, and to assess or monitor the applicant's or recipient's default risk or to collect <br/>
<a id="pl.169.29"></a><var>169.29</var>payments owed are: (1) private data on individuals as defined in section 13.02, subdivision <br/>
<a id="pl.169.30"></a><var>169.30</var>12; and (2) nonpublic data as defined in section 13.02, subdivision 9. The names of the <br/>
<a id="pl.169.31"></a><var>169.31</var>recipients of the financial assistance and the amounts of financial assistance are public data.<br/>
<br/>
<a id="bill.10.5.0"></a><a id="pl.169.32"></a><var>169.32</var>    Sec. 5. Minnesota Statutes 2007 Supplement, section 298.227, is amended to read:<br/>
<a id="pl.169.33"></a><var>169.33</var><b>298.227 TACONITE ECONOMIC DEVELOPMENT FUND.</b><br/>
<a id="pl.170.1"></a><var>170.1</var>    (a) An amount equal to that distributed pursuant to each taconite producer's taxable <br/>
<a id="pl.170.2"></a><var>170.2</var>production and qualifying sales under section 
         <statute_ref>298.28, subdivision 9a</statute_ref>, shall be held by <br/>
<a id="pl.170.3"></a><var>170.3</var>the Iron Range Resources and Rehabilitation Board in a separate taconite economic <br/>
<a id="pl.170.4"></a><var>170.4</var>development fund for each taconite and direct reduced ore producer. Money from the <br/>
<a id="pl.170.5"></a><var>170.5</var>fund for each producer shall be released by the commissioner after review by a joint <br/>
<a id="pl.170.6"></a><var>170.6</var>committee consisting of an equal number of representatives of the salaried employees and <br/>
<a id="pl.170.7"></a><var>170.7</var>the nonsalaried production and maintenance employees of that producer. The District 11 <br/>
<a id="pl.170.8"></a><var>170.8</var>director of the United States Steelworkers of America, on advice of each local employee <br/>
<a id="pl.170.9"></a><var>170.9</var>president, shall select the employee members. In nonorganized operations, the employee <br/>
<a id="pl.170.10"></a><var>170.10</var>committee shall be elected by the nonsalaried production and maintenance employees. <br/>
<a id="pl.170.11"></a><var>170.11</var>The review must be completed no later than six months after the producer presents a <br/>
<a id="pl.170.12"></a><var>170.12</var>proposal for expenditure of the funds to the committee. The funds held pursuant to this <br/>
<a id="pl.170.13"></a><var>170.13</var>section may be released only for workforce development and associated public facility <br/>
<a id="pl.170.14"></a><var>170.14</var>improvement, or for acquisition of plant and stationary mining equipment and facilities <br/>
<a id="pl.170.15"></a><var>170.15</var>for the producer or for research and development in Minnesota on new mining, or <br/>
<a id="pl.170.16"></a><var>170.16</var>taconite, iron, or steel production technology, but only if the producer provides a matching <br/>
<a id="pl.170.17"></a><var>170.17</var>expenditure to be used for the same purpose of at least 50 percent of the distribution <br/>
<a id="pl.170.18"></a><var>170.18</var>based on 
         <statute_ref>14.7</statute_ref> cents per ton beginning with distributions in 2002. Effective for proposals <br/>
<a id="pl.170.19"></a><var>170.19</var>for expenditures of money from the fund beginning May 26, 2007, the commissioner <br/>
<a id="pl.170.20"></a><var>170.20</var>may not release the funds before the next scheduled meeting of the board. If the board <br/>
<a id="pl.170.21"></a><var>170.21</var>rejects a proposed expenditure, the funds must be deposited in the Taconite Environmental <br/>
<a id="pl.170.22"></a><var>170.22</var>Protection Fund under sections 
         <statute_ref>298.222</statute_ref> to 
         <statute_ref>298.225</statute_ref>. If a producer uses money which has <br/>
<a id="pl.170.23"></a><var>170.23</var>been released from the fund prior to May 26, 2007 to procure haulage trucks, mobile <br/>
<a id="pl.170.24"></a><var>170.24</var>equipment, or mining shovels, and the producer removes the piece of equipment from <br/>
<a id="pl.170.25"></a><var>170.25</var>the taconite tax relief area defined in section 
         <statute_ref>273.134</statute_ref> within ten years from the date of <br/>
<a id="pl.170.26"></a><var>170.26</var>receipt of the money from the fund, a portion of the money granted from the fund must <br/>
<a id="pl.170.27"></a><var>170.27</var>be repaid to the taconite economic development fund. The portion of the money to be <br/>
<a id="pl.170.28"></a><var>170.28</var>repaid is 100 percent of the grant if the equipment is removed from the taconite tax relief <br/>
<a id="pl.170.29"></a><var>170.29</var>area within 12 months after receipt of the money from the fund, declining by ten percent <br/>
<a id="pl.170.30"></a><var>170.30</var>for each of the subsequent nine years during which the equipment remains within the <br/>
<a id="pl.170.31"></a><var>170.31</var>taconite tax relief area. If a taconite production facility is sold after operations at the <br/>
<a id="pl.170.32"></a><var>170.32</var>facility had ceased, any money remaining in the fund for the former producer may be <br/>
<a id="pl.170.33"></a><var>170.33</var>released to the purchaser of the facility on the terms otherwise applicable to the former <br/>
<a id="pl.170.34"></a><var>170.34</var>producer under this section. If a producer fails to provide matching funds for a proposed <br/>
<a id="pl.170.35"></a><var>170.35</var>expenditure within six months after the commissioner approves release of the funds, <br/>
<a id="pl.170.36"></a><var>170.36</var>the funds are available for release to another producer in proportion to the distribution <br/>
<a id="pl.171.1"></a><var>171.1</var>provided and under the conditions of this section. Any portion of the fund which is not <br/>
<a id="pl.171.2"></a><var>171.2</var>released by the commissioner within two years one year of its deposit in the fund shall be <br/>
<a id="pl.171.3"></a><var>171.3</var>divided between the taconite environmental protection fund created in section 
         <statute_ref>298.223</statute_ref> <br/>
<a id="pl.171.4"></a><var>171.4</var>and the Douglas J. Johnson economic protection trust fund created in section 
         <statute_ref>298.292</statute_ref> for <br/>
<a id="pl.171.5"></a><var>171.5</var>placement in their respective special accounts. Two-thirds of the unreleased funds shall be <br/>
<a id="pl.171.6"></a><var>171.6</var>distributed to the taconite environmental protection fund and one-third to the Douglas J. <br/>
<a id="pl.171.7"></a><var>171.7</var>Johnson economic protection trust fund. <br/>
<a id="pl.171.8"></a><var>171.8</var>    (b) Notwithstanding the requirements of paragraph (a), setting the amount of <br/>
<a id="pl.171.9"></a><var>171.9</var>distributions and the review process, an amount equal to ten cents per taxable ton of <br/>
<a id="pl.171.10"></a><var>171.10</var>production in 2007, for distribution in 2008 only, that would otherwise be distributed <br/>
<a id="pl.171.11"></a><var>171.11</var>under paragraph (a), may be used for a loan for the cost of construction of a biomass <br/>
<a id="pl.171.12"></a><var>171.12</var>energy facility. This amount must be deducted from the distribution under paragraph <br/>
<a id="pl.171.13"></a><var>171.13</var>(a) for which a matching expenditure by the producer is not required. The granting of <br/>
<a id="pl.171.14"></a><var>171.14</var>the loan is subject to approval by the Iron Range Resources and Rehabilitation Board; <br/>
<a id="pl.171.15"></a><var>171.15</var>interest must be payable on the loan at the rate prescribed in section 298.2213, subdivision <br/>
<a id="pl.171.16"></a><var>171.16</var>3. Repayments of the loan and interest must be deposited in the northeast Minnesota <br/>
<a id="pl.171.17"></a><var>171.17</var>economic development fund established in section 298.2213. If a loan is not made under <br/>
<a id="pl.171.18"></a><var>171.18</var>this paragraph by July 1, 2009, the amount that had been made available for the loan under <br/>
<a id="pl.171.19"></a><var>171.19</var>this paragraph must be transferred to the northeast Minnesota economic development <br/>
<a id="pl.171.20"></a><var>171.20</var>fund. Money distributed in 2008 to the fund established under this section that exceeds ten <br/>
<a id="pl.171.21"></a><var>171.21</var>cents per ton is available to qualifying producers under paragraph (a) on a pro rata basis.<br/>
<a id="pl.171.22"></a><var>171.22</var>    If 2008 H.F. No. 1812 is enacted and includes a provision that amends this section <br/>
<a id="pl.171.23"></a><var>171.23</var>in a manner that is different from the amendment in this section, the amendment in this <br/>
<a id="pl.171.24"></a><var>171.24</var>section supersedes the amendment in 2008 H.F. No. 1812, notwithstanding section 645.26.<br/>
<a id="pl.171.25"></a><var>171.25</var><b>EFFECTIVE DATE.</b>The section is effective the day following final enactment.<br/>
<br/>
<a id="bill.10.6.0"></a><a id="pl.171.26"></a><var>171.26</var>    Sec. 6. Minnesota Statutes 2006, section 298.24, subdivision 1, as amended by Laws <br/>
<a id="pl.171.27"></a><var>171.27</var>2008, chapter 154, article 8, section 5, is amended to read:<br/>
<a id="pl.171.28"></a><var>171.28</var>    Subdivision 1. <b>Imposed; calculation.</b> (a) For concentrate produced in 2001, 2002, <br/>
<a id="pl.171.29"></a><var>171.29</var>and 2003, there is imposed upon taconite and iron sulphides, and upon the mining and <br/>
<a id="pl.171.30"></a><var>171.30</var>quarrying thereof, and upon the production of iron ore concentrate therefrom, and upon <br/>
<a id="pl.171.31"></a><var>171.31</var>the concentrate so produced, a tax of $2.103 per gross ton of merchantable iron ore <br/>
<a id="pl.171.32"></a><var>171.32</var>concentrate produced therefrom. For concentrates produced in 2005, the tax rate is the <br/>
<a id="pl.171.33"></a><var>171.33</var>same rate imposed for concentrates produced in 2004. For concentrates produced in 2009 <br/>
<a id="pl.171.34"></a><var>171.34</var>and subsequent years, the tax is also imposed upon other iron bearing material.<br/>
<a id="pl.172.1"></a><var>172.1</var>    (b) For concentrates produced in 2006 and subsequent years, the tax rate shall be <br/>
<a id="pl.172.2"></a><var>172.2</var>equal to the preceding year's tax rate plus an amount equal to the preceding year's tax rate <br/>
<a id="pl.172.3"></a><var>172.3</var>multiplied by the percentage increase in the implicit price deflator from the fourth quarter <br/>
<a id="pl.172.4"></a><var>172.4</var>of the second preceding year to the fourth quarter of the preceding year. "Implicit price <br/>
<a id="pl.172.5"></a><var>172.5</var>deflator" means the implicit price deflator for the gross domestic product prepared by the <br/>
<a id="pl.172.6"></a><var>172.6</var>Bureau of Economic Analysis of the United States Department of Commerce.<br/>
<a id="pl.172.7"></a><var>172.7</var>    (c) On concentrates produced in 1997 and thereafter, An additional tax is imposed <br/>
<a id="pl.172.8"></a><var>172.8</var>equal to three cents per gross ton of merchantable iron ore concentrate for each one <br/>
<a id="pl.172.9"></a><var>172.9</var>percent that the iron content of the product exceeds 72 percent, when dried at 212 degrees <br/>
<a id="pl.172.10"></a><var>172.10</var>Fahrenheit.<br/>
<a id="pl.172.11"></a><var>172.11</var>    (d) The tax on taconite and iron sulphides shall be imposed on the average of the <br/>
<a id="pl.172.12"></a><var>172.12</var>production for the current year and the previous two years. The rate of the tax imposed <br/>
<a id="pl.172.13"></a><var>172.13</var>will be the current year's tax rate. This clause shall not apply in the case of the closing <br/>
<a id="pl.172.14"></a><var>172.14</var>of a taconite facility if the property taxes on the facility would be higher if this clause <br/>
<a id="pl.172.15"></a><var>172.15</var>and section 
         <statute_ref>298.25</statute_ref> were not applicable. The tax on other iron bearing material shall be <br/>
<a id="pl.172.16"></a><var>172.16</var>imposed on the current year production.<br/>
<a id="pl.172.17"></a><var>172.17</var>    (e) If the tax or any part of the tax imposed by this subdivision is held to be <br/>
<a id="pl.172.18"></a><var>172.18</var>unconstitutional, a tax of $2.103 per gross ton of merchantable iron ore concentrate <br/>
<a id="pl.172.19"></a><var>172.19</var>produced shall be imposed.<br/>
<a id="pl.172.20"></a><var>172.20</var>    (f) Consistent with the intent of this subdivision to impose a tax based upon the <br/>
<a id="pl.172.21"></a><var>172.21</var>weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly <br/>
<a id="pl.172.22"></a><var>172.22</var>determine the weight of merchantable iron ore concentrate included in fluxed pellets by <br/>
<a id="pl.172.23"></a><var>172.23</var>subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic <br/>
<a id="pl.172.24"></a><var>172.24</var>flux additives included in the pellets from the weight of the pellets. For purposes of this <br/>
<a id="pl.172.25"></a><var>172.25</var>paragraph, "fluxed pellets" are pellets produced in a process in which limestone, dolomite, <br/>
<a id="pl.172.26"></a><var>172.26</var>olivine, or other basic flux additives are combined with merchantable iron ore concentrate. <br/>
<a id="pl.172.27"></a><var>172.27</var>No subtraction from the weight of the pellets shall be allowed for binders, mineral and <br/>
<a id="pl.172.28"></a><var>172.28</var>chemical additives other than basic flux additives, or moisture.<br/>
<a id="pl.172.29"></a><var>172.29</var>    (g)(1) Notwithstanding any other provision of this subdivision, for the first two years <br/>
<a id="pl.172.30"></a><var>172.30</var>of a plant's commercial production of direct reduced ore from ore mined in this state, no <br/>
<a id="pl.172.31"></a><var>172.31</var>tax is imposed under this section. As used in this paragraph, "commercial production" is <br/>
<a id="pl.172.32"></a><var>172.32</var>production of more than 50,000 tons of direct reduced ore in the current year or in any <br/>
<a id="pl.172.33"></a><var>172.33</var>prior year, "noncommercial production" is production of 50,000 tons or less of direct <br/>
<a id="pl.172.34"></a><var>172.34</var>reduced ore in any year, and "direct reduced ore" is ore that results in a product that has an <br/>
<a id="pl.172.35"></a><var>172.35</var>iron content of at least 75 percent. For the third year of a plant's commercial production of <br/>
<a id="pl.172.36"></a><var>172.36</var>direct reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate <br/>
<a id="pl.173.1"></a><var>173.1</var>otherwise determined under this subdivision. For the fourth commercial production year, <br/>
<a id="pl.173.2"></a><var>173.2</var>the rate is 50 percent of the rate otherwise determined under this subdivision; for the fifth <br/>
<a id="pl.173.3"></a><var>173.3</var>commercial production year, the rate is 75 percent of the rate otherwise determined under <br/>
<a id="pl.173.4"></a><var>173.4</var>this subdivision; and for all subsequent commercial production years, the full rate is <br/>
<a id="pl.173.5"></a><var>173.5</var>imposed.<br/>
<a id="pl.173.6"></a><var>173.6</var>    (2) Subject to clause (1), production of direct reduced ore in this state is subject to <br/>
<a id="pl.173.7"></a><var>173.7</var>the tax imposed by this section, but if that production is not produced by a producer of <br/>
<a id="pl.173.8"></a><var>173.8</var>taconite or, iron sulfides, or other iron bearing material, the production of taconite or, <br/>
<a id="pl.173.9"></a><var>173.9</var>iron sulfides, or other iron bearing material, that is consumed in the production of direct <br/>
<a id="pl.173.10"></a><var>173.10</var>reduced iron in this state is not subject to the tax imposed by this section on taconite or, <br/>
<a id="pl.173.11"></a><var>173.11</var>iron sulfides, or other iron bearing material.<br/>
<a id="pl.173.12"></a><var>173.12</var>    (3) Notwithstanding any other provision of this subdivision, no tax is imposed <br/>
<a id="pl.173.13"></a><var>173.13</var>on direct reduced ore under this section during the facility's noncommercial production <br/>
<a id="pl.173.14"></a><var>173.14</var>of direct reduced ore. The taconite or iron sulphides consumed in the noncommercial <br/>
<a id="pl.173.15"></a><var>173.15</var>production of direct reduced ore is subject to the tax imposed by this section on taconite <br/>
<a id="pl.173.16"></a><var>173.16</var>and iron sulphides. Three-year average production of direct reduced ore does not <br/>
<a id="pl.173.17"></a><var>173.17</var>include production of direct reduced ore in any noncommercial year. Three-year average <br/>
<a id="pl.173.18"></a><var>173.18</var>production for a direct reduced ore facility that has noncommercial production is the <br/>
<a id="pl.173.19"></a><var>173.19</var>average of the commercial production of direct reduced ore for the current year and the <br/>
<a id="pl.173.20"></a><var>173.20</var>previous two commercial years.<br/>
<a id="pl.173.21"></a><var>173.21</var>    (4) This paragraph applies only to plants for which all environmental permits have <br/>
<a id="pl.173.22"></a><var>173.22</var>been obtained and construction has begun before July 1, 2008.<br/>
<a id="pl.173.23"></a><var>173.23</var><b>EFFECTIVE DATE.</b>This section is effective for production in 2009 and thereafter, <br/>
<a id="pl.173.24"></a><var>173.24</var>except that the amendment to paragraph (g) is effective the day following final enactment.<br/>
<br/>
<a id="bill.10.7.0"></a><a id="pl.173.25"></a><var>173.25</var>    Sec. 7. Minnesota Statutes 2006, section 298.25, as amended by Laws 2008, chapter <br/>
<a id="pl.173.26"></a><var>173.26</var>154, article 8, section 6, is amended to read:<br/>
<a id="pl.173.27"></a><var>173.27</var><b>298.25 TAXES ADDITIONAL TO OCCUPATION TAX; IN LIEU OF OTHER </b><br/>
<a id="pl.173.28"></a><var>173.28</var><b>TAXES. </b><br/>
<a id="pl.173.29"></a><var>173.29</var>    The taxes imposed under section 
         <statute_ref>298.24</statute_ref> shall be in addition to the occupation tax <br/>
<a id="pl.173.30"></a><var>173.30</var>imposed upon the business of mining and producing iron ore. Except as herein otherwise <br/>
<a id="pl.173.31"></a><var>173.31</var>provided, such taxes shall be in lieu of all other taxes upon such taconite, iron sulphides, <br/>
<a id="pl.173.32"></a><var>173.32</var>and direct reduced ore, and other iron bearing material or the lands in which they are <br/>
<a id="pl.173.33"></a><var>173.33</var>contained, or upon the mining or quarrying thereof, or the production of concentrate or <br/>
<a id="pl.173.34"></a><var>173.34</var>direct reduced ore therefrom, or upon the concentrate or direct reduced ore produced, <br/>
<a id="pl.173.35"></a><var>173.35</var>or upon the machinery, equipment, tools, supplies and buildings used in such mining, <br/>
<a id="pl.174.1"></a><var>174.1</var>quarrying or production, or upon the lands occupied by, or used in connection with, such <br/>
<a id="pl.174.2"></a><var>174.2</var>mining, quarrying or production facilities. If electric or steam power for the mining, <br/>
<a id="pl.174.3"></a><var>174.3</var>transportation or concentration of such taconite, concentrates or, direct reduced ore, or <br/>
<a id="pl.174.4"></a><var>174.4</var>other iron bearing material produced therefrom is generated in plants principally devoted <br/>
<a id="pl.174.5"></a><var>174.5</var>to the generation of power for such purposes, the plants in which such power is generated <br/>
<a id="pl.174.6"></a><var>174.6</var>and all machinery, equipment, tools, supplies, transmission and distribution lines used in <br/>
<a id="pl.174.7"></a><var>174.7</var>the generation and distribution of such power, shall not be considered to be machinery, <br/>
<a id="pl.174.8"></a><var>174.8</var>equipment, tools, supplies and buildings used in the mining, quarrying, or production of <br/>
<a id="pl.174.9"></a><var>174.9</var>taconite, taconite concentrates or direct reduced ore within the meaning of this section, <br/>
<a id="pl.174.10"></a><var>174.10</var>and shall be subject to general property taxation. Nothing herein shall prevent in this <br/>
<a id="pl.174.11"></a><var>174.11</var>section prevents the assessment and taxation under the general property tax law of:<br/>
<a id="pl.174.12"></a><var>174.12</var>    (1) the surface of reserve land containing taconite or other iron bearing material <br/>
<a id="pl.174.13"></a><var>174.13</var>and not occupied by such facilities or used in connection therewith with them at the <br/>
<a id="pl.174.14"></a><var>174.14</var>value thereof of the land without regard to the taconite or, iron sulphides therein, nor the <br/>
<a id="pl.174.15"></a><var>174.15</var>assessment and taxation of, or other iron bearing materials in the land;<br/>
<a id="pl.174.16"></a><var>174.16</var>    (2) merchantable iron ore or other minerals, or iron-bearing materials other than <br/>
<a id="pl.174.17"></a><var>174.17</var>taconite or iron sulphides in such the lands in the manner provided by law, nor the <br/>
<a id="pl.174.18"></a><var>174.18</var>assessment and taxation of;<br/>
<a id="pl.174.19"></a><var>174.19</var>    (3) facilities used in producing sulphur or sulphur products from iron sulphide <br/>
<a id="pl.174.20"></a><var>174.20</var>concentrates, or in refining such sulphur products, under the general property tax laws. <br/>
<a id="pl.174.21"></a><var>174.21</var>Nothing herein shall except from general taxation or from taxation as provided by other <br/>
<a id="pl.174.22"></a><var>174.22</var>laws; or<br/>
<a id="pl.174.23"></a><var>174.23</var>    (4) any property used for residential or townsite purposes, including utility services <br/>
<a id="pl.174.24"></a><var>174.24</var>thereto to that property.<br/>
<a id="pl.174.25"></a><var>174.25</var>     This section does not provide an exemption from general property taxation for ore <br/>
<a id="pl.174.26"></a><var>174.26</var>docks even if located at the site of a taconite production facility. <br/>
<a id="pl.174.27"></a><var>174.27</var><b>EFFECTIVE DATE.</b>This section is effective for production in 2009 and thereafter.<br/>
<br/>
<a id="bill.10.8.0"></a><a id="pl.174.28"></a><var>174.28</var>    Sec. 8. Minnesota Statutes 2006, section 298.28, subdivision 3, is amended to read:<br/>
<a id="pl.174.29"></a><var>174.29</var>    Subd. 3. <b>Cities; towns.</b> (a) 12.5 cents per taxable ton, less any amount distributed <br/>
<a id="pl.174.30"></a><var>174.30</var>under subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid <br/>
<a id="pl.174.31"></a><var>174.31</var>account to be distributed as provided in section 
         <statute_ref>298.282</statute_ref>. <br/>
<a id="pl.174.32"></a><var>174.32</var>    (b) An amount must be allocated to towns or cities that is annually certified by <br/>
<a id="pl.174.33"></a><var>174.33</var>the county auditor of a county containing a taconite tax relief area as defined in section <br/>
<statute_ref><a id="pl.174.34"></a><var>174.34</var>273.134, paragraph (b)
         </statute_ref>, within which there is (1) an organized township if, as of January <br/>
<a id="pl.174.35"></a><var>174.35</var>2, 1982, more than 75 percent of the assessed valuation of the township consists of iron <br/>
<a id="pl.175.1"></a><var>175.1</var>ore or (2) a city if, as of January 2, 1980, more than 75 percent of the assessed valuation <br/>
<a id="pl.175.2"></a><var>175.2</var>of the city consists of iron ore. <br/>
<a id="pl.175.3"></a><var>175.3</var>    (c) The amount allocated under paragraph (b) will be the portion of a township's or <br/>
<a id="pl.175.4"></a><var>175.4</var>city's certified levy equal to the proportion of (1) the difference between 50 percent of <br/>
<a id="pl.175.5"></a><var>175.5</var>January 2, 1982, assessed value in the case of a township and 50 percent of the January 2, <br/>
<a id="pl.175.6"></a><var>175.6</var>1980, assessed value in the case of a city and its current assessed value to (2) the sum of <br/>
<a id="pl.175.7"></a><var>175.7</var>its current assessed value plus the difference determined in (1), provided that the amount <br/>
<a id="pl.175.8"></a><var>175.8</var>distributed shall not exceed $55 per capita in the case of a township or $75 per capita in <br/>
<a id="pl.175.9"></a><var>175.9</var>the case of a city. For purposes of this limitation, population will be determined according <br/>
<a id="pl.175.10"></a><var>175.10</var>to the 1980 decennial census conducted by the United States Bureau of the Census. If the <br/>
<a id="pl.175.11"></a><var>175.11</var>current assessed value of the township exceeds 50 percent of the township's January 2, <br/>
<a id="pl.175.12"></a><var>175.12</var>1982, assessed value, or if the current assessed value of the city exceeds 50 percent of the <br/>
<a id="pl.175.13"></a><var>175.13</var>city's January 2, 1980, assessed value, this paragraph shall not apply. For purposes of this <br/>
<a id="pl.175.14"></a><var>175.14</var>paragraph, "assessed value," when used in reference to years other than 1980 or 1982, <br/>
<a id="pl.175.15"></a><var>175.15</var>means the appropriate net tax capacities multiplied by 10.2.<br/>
<a id="pl.175.16"></a><var>175.16</var>    (d) In addition to other distributions under this subdivision, three cents per taxable <br/>
<a id="pl.175.17"></a><var>175.17</var>ton for distributions in 2009 must be allocated for distribution to towns that are entirely <br/>
<a id="pl.175.18"></a><var>175.18</var>located within the taconite tax relief area defined in section 273.134, paragraph (b). <br/>
<a id="pl.175.19"></a><var>175.19</var>For distribution in 2010 and subsequent years, the three-cent amount must be annually <br/>
<a id="pl.175.20"></a><var>175.20</var>increased in the same proportion as the increase in the implicit price deflator as provided <br/>
<a id="pl.175.21"></a><var>175.21</var>in section 298.24, subdivision 1. The amount available under this paragraph will be <br/>
<a id="pl.175.22"></a><var>175.22</var>distributed to eligible towns on a per capita basis, provided that no town may receive more <br/>
<a id="pl.175.23"></a><var>175.23</var>than $50,000 in any year under this paragraph. Any amount of the distribution that exceeds <br/>
<a id="pl.175.24"></a><var>175.24</var>the $50,000 limitation for a town under this paragraph must be redistributed on a per <br/>
<a id="pl.175.25"></a><var>175.25</var>capita basis among the other eligible towns, to whose distributions do not exceed $50,000.<br/>
<a id="pl.175.26"></a><var>175.26</var><b>EFFECTIVE DATE.</b>This section is effective for distributions in 2009 and <br/>
<a id="pl.175.27"></a><var>175.27</var>thereafter.<br/>
<br/>
<a id="bill.10.9.0"></a><a id="pl.175.28"></a><var>175.28</var>    Sec. 9. Minnesota Statutes 2006, section 298.28, subdivision 9d, as added by Laws <br/>
<a id="pl.175.29"></a><var>175.29</var>2008, chapter 154, article 8, section 9, is amended to read:<br/>
<a id="pl.175.30"></a><var>175.30</var>    Subd. 9d.  <b>Iron Range higher education account.</b> Two Five cents per taxable ton <br/>
<a id="pl.175.31"></a><var>175.31</var>must be allocated to the Iron Range Resources and Rehabilitation Board to be deposited <br/>
<a id="pl.175.32"></a><var>175.32</var>in an Iron Range higher education account that is hereby created, to be used for higher <br/>
<a id="pl.175.33"></a><var>175.33</var>education programs conducted at educational institutions in the taconite assistance area <br/>
<a id="pl.175.34"></a><var>175.34</var>defined in section 
         <statute_ref>273.1341</statute_ref>. The Iron Range Higher Education committee under section <br/>
<statute_ref><a id="pl.176.1"></a><var>176.1</var>298.2214
         </statute_ref> and the Iron Range Resources and Rehabilitation Board must approve all <br/>
<a id="pl.176.2"></a><var>176.2</var>expenditures from the account. <br/>
<a id="pl.176.3"></a><var>176.3</var><b>EFFECTIVE DATE.</b>This section is effective for production in 2007, distributions <br/>
<a id="pl.176.4"></a><var>176.4</var>in 2008, and thereafter.<br/>
<br/>
<a id="bill.10.10.0"></a><a id="pl.176.5"></a><var>176.5</var>    Sec. 10. Minnesota Statutes 2006, section 298.28, subdivision 12, is amended to read:<br/>
<a id="pl.176.6"></a><var>176.6</var>    Subd. 12. <b>Estimates.</b> On or before October 10 of each calendar year each <br/>
<a id="pl.176.7"></a><var>176.7</var>producer of taconite or, iron sulphides, and other iron-bearing material subject to taxation <br/>
<a id="pl.176.8"></a><var>176.8</var>under section 
         <statute_ref>298.24</statute_ref> (, hereinafter called referred to as "taxpayer"), shall file with the <br/>
<a id="pl.176.9"></a><var>176.9</var>commissioner of revenue an estimate of the amount of tax which that would be payable by <br/>
<a id="pl.176.10"></a><var>176.10</var>such the taxpayer under said the law for such the calendar year; provided such that the <br/>
<a id="pl.176.11"></a><var>176.11</var> estimate shall be in an amount not less than the amount due on the mining and production <br/>
<a id="pl.176.12"></a><var>176.12</var>of concentrates up to September 30 of said the year plus the amount becoming due <br/>
<a id="pl.176.13"></a><var>176.13</var>because of probable production between September 30 and December 31 of said the year, <br/>
<a id="pl.176.14"></a><var>176.14</var>less any credit allowable as provided in subdivision 13. The commissioner of revenue <br/>
<a id="pl.176.15"></a><var>176.15</var>shall annually on or before October 10 report an estimated distribution amount to each <br/>
<a id="pl.176.16"></a><var>176.16</var>taxing district and the officers with whom such report is so filed shall use the amount so <br/>
<a id="pl.176.17"></a><var>176.17</var>indicated as being distributable to each taxing district in computing the permissible tax <br/>
<a id="pl.176.18"></a><var>176.18</var>levy of such the county or city in the year in which such the estimate is made, and payable <br/>
<a id="pl.176.19"></a><var>176.19</var>in the next ensuing calendar year, except that one cent per taxable ton of the amount <br/>
<a id="pl.176.20"></a><var>176.20</var>distributed under subdivision 5, paragraph (d), shall not be deducted in calculating the <br/>
<a id="pl.176.21"></a><var>176.21</var>permissible levy. In any calendar year in which a general property tax levy has been <br/>
<a id="pl.176.22"></a><var>176.22</var>made, if the taxes distributable to any such county or city are greater than the amount <br/>
<a id="pl.176.23"></a><var>176.23</var>estimated by the commissioner to be paid to any such the county or city in such that <br/>
<a id="pl.176.24"></a><var>176.24</var>year, the excess of such the distribution shall be held in a special fund by the county or <br/>
<a id="pl.176.25"></a><var>176.25</var>city and shall not be expended until the succeeding calendar year, and shall be included <br/>
<a id="pl.176.26"></a><var>176.26</var>in computing the permissible levies of such the county or city payable in such year. If <br/>
<a id="pl.176.27"></a><var>176.27</var>the amounts distributable to any such the  county or city after final determination by the <br/>
<a id="pl.176.28"></a><var>176.28</var>commissioner of revenue under this section are less than the amounts by which a taxing <br/>
<a id="pl.176.29"></a><var>176.29</var>district's levies were reduced pursuant to this section, such the county or city may issue <br/>
<a id="pl.176.30"></a><var>176.30</var>certificates of indebtedness in the amount of the shortage, and may include in its next tax <br/>
<a id="pl.176.31"></a><var>176.31</var>levy an amount sufficient to pay such the certificates of indebtedness and interest thereon, <br/>
<a id="pl.176.32"></a><var>176.32</var>or, if no certificates were issued, an amount equal to such the shortage. <br/>
<a id="pl.176.33"></a><var>176.33</var><b>EFFECTIVE DATE.</b>This section is effective for production in 2009 and thereafter.<br/>
<br/>
<a id="bill.10.11.0"></a><a id="pl.177.1"></a><var>177.1</var>    Sec. 11. Minnesota Statutes 2006, section 298.292, subdivision 2, as amended by Laws <br/>
<a id="pl.177.2"></a><var>177.2</var>2008, chapter 154, article 8, section 11, is amended to read:<br/>
<a id="pl.177.3"></a><var>177.3</var>    Subd. 2.  <b>Use of money.</b> Money in the Douglas J. Johnson economic protection trust <br/>
<a id="pl.177.4"></a><var>177.4</var>fund may be used for the following purposes: <br/>
<a id="pl.177.5"></a><var>177.5</var>    (1) to provide loans, loan guarantees, interest buy-downs and other forms of <br/>
<a id="pl.177.6"></a><var>177.6</var>participation with private sources of financing, but a loan to a private enterprise shall be <br/>
<a id="pl.177.7"></a><var>177.7</var>for a principal amount not to exceed one-half of the cost of the project for which financing <br/>
<a id="pl.177.8"></a><var>177.8</var>is sought, and the rate of interest on a loan to a private enterprise shall be no less than the <br/>
<a id="pl.177.9"></a><var>177.9</var>lesser of eight percent or an interest rate three percentage points less than a full faith <br/>
<a id="pl.177.10"></a><var>177.10</var>and credit obligation of the United States government of comparable maturity, at the <br/>
<a id="pl.177.11"></a><var>177.11</var>time that the loan is approved; <br/>
<a id="pl.177.12"></a><var>177.12</var>    (2) to fund reserve accounts established to secure the payment when due of the <br/>
<a id="pl.177.13"></a><var>177.13</var>principal of and interest on bonds issued pursuant to section 
         <statute_ref>298.2211</statute_ref>; <br/>
<a id="pl.177.14"></a><var>177.14</var>    (3) to pay in periodic payments or in a lump sum payment any or all of the interest <br/>
<a id="pl.177.15"></a><var>177.15</var>on bonds issued pursuant to chapter 474 for the purpose of constructing, converting, <br/>
<a id="pl.177.16"></a><var>177.16</var>or retrofitting heating facilities in connection with district heating systems or systems <br/>
<a id="pl.177.17"></a><var>177.17</var>utilizing alternative energy sources; <br/>
<a id="pl.177.18"></a><var>177.18</var>    (4) to invest in a venture capital fund or enterprise that will provide capital to other <br/>
<a id="pl.177.19"></a><var>177.19</var>entities that are engaging in, or that will engage in, projects or programs that have the <br/>
<a id="pl.177.20"></a><var>177.20</var>purposes set forth in subdivision 1. No investments may be made in a venture capital fund <br/>
<a id="pl.177.21"></a><var>177.21</var>or enterprise unless at least two other unrelated investors make investments of at least <br/>
<a id="pl.177.22"></a><var>177.22</var>$500,000 in the venture capital fund or enterprise, and the investment by the Douglas <br/>
<a id="pl.177.23"></a><var>177.23</var>J. Johnson economic protection trust fund may not exceed the amount of the largest <br/>
<a id="pl.177.24"></a><var>177.24</var>investment by an unrelated investor in the venture capital fund or enterprise. For purposes <br/>
<a id="pl.177.25"></a><var>177.25</var>of this subdivision, an "unrelated investor" is a person or entity that is not related to <br/>
<a id="pl.177.26"></a><var>177.26</var>the entity in which the investment is made or to any individual who owns more than 40 <br/>
<a id="pl.177.27"></a><var>177.27</var>percent of the value of the entity, in any of the following relationships: spouse, parent, <br/>
<a id="pl.177.28"></a><var>177.28</var>child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of <br/>
<a id="pl.177.29"></a><var>177.29</var>the value of all interests in it. For purposes of determining the limitations under this <br/>
<a id="pl.177.30"></a><var>177.30</var>clause, the amount of investments made by an investor other than the Douglas J. Johnson <br/>
<a id="pl.177.31"></a><var>177.31</var>economic protection trust fund is the sum of all investments made in the venture capital <br/>
<a id="pl.177.32"></a><var>177.32</var>fund or enterprise during the period beginning one year before the date of the investment <br/>
<a id="pl.177.33"></a><var>177.33</var>by the Douglas J. Johnson economic protection trust fund; and <br/>
<a id="pl.177.34"></a><var>177.34</var>    (5) to purchase forest land in the taconite assistance area defined in section 
         <statute_ref>273.1341</statute_ref> <br/>
<a id="pl.177.35"></a><var>177.35</var>to be held and managed as a public trust for the benefit of the area for the purposes <br/>
<a id="pl.177.36"></a><var>177.36</var>authorized in section 
         <statute_ref>298.22, subdivision 5a</statute_ref>. Property purchased under this section may <br/>
<a id="pl.178.1"></a><var>178.1</var>be sold by the commissioner upon approval by a majority vote of the board. The net <br/>
<a id="pl.178.2"></a><var>178.2</var>proceeds must be deposited in the trust fund for the purposes and uses of this section.<br/>
<a id="pl.178.3"></a><var>178.3</var>    Money from the trust fund shall be expended only in or for the benefit of the taconite <br/>
<a id="pl.178.4"></a><var>178.4</var>assistance area defined in section 
         <statute_ref>273.1341</statute_ref>. <br/>
<br/>
<a id="bill.10.12.0"></a><a id="pl.178.5"></a><var>178.5</var>    Sec. 12. Minnesota Statutes 2006, section 298.405, subdivision 1, is amended to read:<br/>
<a id="pl.178.6"></a><var>178.6</var>    Subdivision 1. <b>Imposition of tax</b><b> Definition</b><b>.</b> In any year in which Iron bearing <br/>
<a id="pl.178.7"></a><var>178.7</var>material other than taconite and semitaconite as defined by law, having not more than 46.5 <br/>
<a id="pl.178.8"></a><var>178.8</var>percent natural iron content on the average, is subject to taxation under section 298.24. <br/>
<a id="pl.178.9"></a><var>178.9</var>The tax under that section applies to material that is:<br/>
<a id="pl.178.10"></a><var>178.10</var>    (1) produced from any 40 acre tract or governmental lot, but not from more than <br/>
<a id="pl.178.11"></a><var>178.11</var>three such tracts or lots by an individual producer, is finer than or is ground to 90 percent <br/>
<a id="pl.178.12"></a><var>178.12</var>passing 20 mesh and is; and<br/>
<a id="pl.178.13"></a><var>178.13</var>    (2) treated in Minnesota for the purpose of separating the iron particles from silica, <br/>
<a id="pl.178.14"></a><var>178.14</var>alumina, or other detrimental compounds or elements unless used in a direct reduction <br/>
<a id="pl.178.15"></a><var>178.15</var>process, and is treated in Minnesota:<br/>
<a id="pl.178.16"></a><var>178.16</var>    (a) (i) by either electrostatic separation, roasting and magnetic separation, or <br/>
<a id="pl.178.17"></a><var>178.17</var>flotation or;<br/>
<a id="pl.178.18"></a><var>178.18</var>    (b) (ii) by a direct reduction process or;<br/>
<a id="pl.178.19"></a><var>178.19</var>    (c) (iii) by any combination of such processes; or<br/>
<a id="pl.178.20"></a><var>178.20</var>    (d) (iv) by any other process or method not presently employed in gravity separation <br/>
<a id="pl.178.21"></a><var>178.21</var>plants employing only crushing, screening, washing, jigging, heavy media separation, <br/>
<a id="pl.178.22"></a><var>178.22</var>spirals, cyclones, drying or any combination thereof, the production of such ore shall <br/>
<a id="pl.178.23"></a><var>178.23</var>be taxed in the manner and at the rates provided for the taxation of semitaconite under <br/>
<a id="pl.178.24"></a><var>178.24</var>section 
<statute_ref>298.35</statute_ref> provided that the<br/>
<a id="pl.178.25"></a><var>178.25</var>     amount of concentrates or final product so produced each year from any one 40 acre <br/>
<a id="pl.178.26"></a><var>178.26</var>tract or governmental lot exceeds 100,000 tons or exceeds 25,000 tons from any one <br/>
<a id="pl.178.27"></a><var>178.27</var>40 acre tract or governmental lot where the average phosphorus content exceeds .125 <br/>
<a id="pl.178.28"></a><var>178.28</var>percent dry analysis or .10 percent sulphur dry analysis. Such tax shall be in addition to <br/>
<a id="pl.178.29"></a><var>178.29</var>the occupation and royalty taxes but shall be in lieu of all other taxes upon the said 40 <br/>
<a id="pl.178.30"></a><var>178.30</var>acre tract or governmental lot, the iron ore contained therein, the concentrates produced, <br/>
<a id="pl.178.31"></a><var>178.31</var>and the mining and beneficiating facilities used in such production. The determination <br/>
<a id="pl.178.32"></a><var>178.32</var>as to what materials will qualify under this law will be made by the commissioner of <br/>
<a id="pl.178.33"></a><var>178.33</var>revenue who may use the services of the Ore Estimate Division of the University of <br/>
<a id="pl.178.34"></a><var>178.34</var>Minnesota, Department of Civil and Mineral Engineering, which is hereby established <br/>
<a id="pl.178.35"></a><var>178.35</var>as a technical consultant to the commissioner for the purposes of this section. The tax <br/>
<a id="pl.179.1"></a><var>179.1</var>imposed shall be collected, paid, and the proceeds thereof distributed in the same manner <br/>
<a id="pl.179.2"></a><var>179.2</var>and at the same time as the tax imposed upon semitaconite by section 
<statute_ref>298.35</statute_ref> is collected, <br/>
<a id="pl.179.3"></a><var>179.3</var>paid, and distributed. <br/>
<br/>
<a id="bill.10.13.0"></a><a id="pl.179.4"></a><var>179.4</var>    Sec. 13. Laws 2008, chapter 154, article 8, section 14, the effective date, is amended to <br/>
<a id="pl.179.5"></a><var>179.5</var>read:<br/>
<a id="pl.179.6"></a><var>179.6</var><b>EFFECTIVE DATE.</b>This section is effective for distributions made in 2008 2007 <br/>
<a id="pl.179.7"></a><var>179.7</var>and thereafter.<br/>
<br/>
<a id="bill.10.14.0"></a><a id="pl.179.8"></a><var>179.8</var>    Sec. 14. <b>ELECTRIC GENERATING PLANTS IN TACONITE TAX RELIEF </b><br/>
<a id="pl.179.9"></a><var>179.9</var><b>AREAS.</b><br/>
<a id="pl.179.10"></a><var>179.10</var>    For purposes of definitions of "taconite tax relief area" and "taconite assistance area" <br/>
<a id="pl.179.11"></a><var>179.11</var>in Minnesota Statutes, sections 273.134, 273.1341, and related laws, the elimination <br/>
<a id="pl.179.12"></a><var>179.12</var>of the property tax exemption for certain electric generating plants under Laws 2008, <br/>
<a id="pl.179.13"></a><var>179.13</var>chapter 154, article 8, section 6, does not change the status of any electric generating plant <br/>
<a id="pl.179.14"></a><var>179.14</var>qualifying as a taconite facility.<br/>
<br/>
<a id="bill.10.15.0"></a><a id="pl.179.15"></a><var>179.15</var>    Sec. 15. <b>2008 DISTRIBUTIONS ONLY.</b><br/>
<a id="pl.179.16"></a><var>179.16</var>    For distribution in 2008 only, a special fund is established to receive 11.4 cents <br/>
<a id="pl.179.17"></a><var>179.17</var>per ton that otherwise would be allocated under Minnesota Statutes, section 298.28, <br/>
<a id="pl.179.18"></a><var>179.18</var>subdivision 6. If sufficient funds are not available under Minnesota Statutes, section <br/>
<a id="pl.179.19"></a><var>179.19</var>298.28, subdivision 6, to make the payments required under this section and under <br/>
<a id="pl.179.20"></a><var>179.20</var>Minnesota Statutes, section 298.28, subdivision 6, the remaining amount needed to total <br/>
<a id="pl.179.21"></a><var>179.21</var>11.4 cents per ton may be taken from funds available under Minnesota Statutes, section <br/>
<a id="pl.179.22"></a><var>179.22</var>298.28, subdivision 9. If 2008 H.F. No. 1812 is enacted and includes a provision that <br/>
<a id="pl.179.23"></a><var>179.23</var>distributes funds that would otherwise be allocated under Minnesota Statutes, section <br/>
<a id="pl.179.24"></a><var>179.24</var>298.28, subdivision 6, in a manner different from the distribution required in this section, <br/>
<a id="pl.179.25"></a><var>179.25</var>the distribution in this section supersedes the distribution set in 2008 H.F. No. 1812 <br/>
<a id="pl.179.26"></a><var>179.26</var>notwithstanding Minnesota Statutes, section 645.26. The following amounts are allocated <br/>
<a id="pl.179.27"></a><var>179.27</var>to St. Louis County acting as the fiscal agent for the recipients for the following specified <br/>
<a id="pl.179.28"></a><var>179.28</var>purposes:<br/>
<a id="pl.179.29"></a><var>179.29</var>    (1) two cents per ton must be paid to the Hibbing Economic Development Authority <br/>
<a id="pl.179.30"></a><var>179.30</var>to retire bonds and for economic development purposes;<br/>
<a id="pl.179.31"></a><var>179.31</var>    (2) one cent per ton must be divided among and paid in equal shares to each of the <br/>
<a id="pl.179.32"></a><var>179.32</var>board of St. Louis County School District No. 2142, the board of Ely School District No. <br/>
<a id="pl.179.33"></a><var>179.33</var>696, the board of Mountain Iron-Buhl School District No. 712, and the board of Virginia <br/>
<a id="pl.180.1"></a><var>180.1</var>School District No. 706 for each to study the potential for and impact of consolidation <br/>
<a id="pl.180.2"></a><var>180.2</var>and streamlining the operations of their school districts;<br/>
<a id="pl.180.3"></a><var>180.3</var>    (3) 0.25 cent per ton must be paid to the city of Grand Rapids, for industrial park <br/>
<a id="pl.180.4"></a><var>180.4</var>work;<br/>
<a id="pl.180.5"></a><var>180.5</var>    (4) 0.65 cent per ton must be paid to the city of Aitkin, for sewer and water for <br/>
<a id="pl.180.6"></a><var>180.6</var>housing projects;<br/>
<a id="pl.180.7"></a><var>180.7</var>    (5) 0.5 cent per ton must be paid to the city of Crosby, for well and water tower <br/>
<a id="pl.180.8"></a><var>180.8</var>infrastructure;<br/>
<a id="pl.180.9"></a><var>180.9</var>    (6) 0.5 cent per ton must be paid to the city of Two Harbors, for well and water <br/>
<a id="pl.180.10"></a><var>180.10</var>tower infrastructure;<br/>
<a id="pl.180.11"></a><var>180.11</var>    (7) 1.5 cents per ton must be paid to the city of Silver Bay to pay for health and <br/>
<a id="pl.180.12"></a><var>180.12</var>safety and maintenance improvements at a former elementary school building that is <br/>
<a id="pl.180.13"></a><var>180.13</var>currently owned by the city, to be used for economic development purposes;<br/>
<a id="pl.180.14"></a><var>180.14</var>    (8) 1.5 cents per ton must be paid to St. Louis County to extend water and sewer <br/>
<a id="pl.180.15"></a><var>180.15</var>lines from the city of Chisholm to the St. Louis County fairgrounds;<br/>
<a id="pl.180.16"></a><var>180.16</var>    (9) 1.5 cents per ton must be paid to the White Community Hospital for debt <br/>
<a id="pl.180.17"></a><var>180.17</var>restructuring;<br/>
<a id="pl.180.18"></a><var>180.18</var>    (10) 0.5 cent per ton must be paid to the city of Keewatin for street, sewer, and <br/>
<a id="pl.180.19"></a><var>180.19</var>water improvements;<br/>
<a id="pl.180.20"></a><var>180.20</var>    (11) 0.5 cent per ton must be paid to the city of Calumet for street, sewer, and water <br/>
<a id="pl.180.21"></a><var>180.21</var>improvements; and<br/>
<a id="pl.180.22"></a><var>180.22</var>    (12) one cent per ton must be paid to Breitung township for sewer and water <br/>
<a id="pl.180.23"></a><var>180.23</var>extensions associated with the development of a state park, provided that if a new state <br/>
<a id="pl.180.24"></a><var>180.24</var>park is not established in Breitung township by July 1, 2009, the money provided in <br/>
<a id="pl.180.25"></a><var>180.25</var>this clause must be transferred to the northeast Minnesota economic development fund <br/>
<a id="pl.180.26"></a><var>180.26</var>established in Minnesota Statutes, section 298.2213.<br/>
<br/>
<a id="bill.10.16.0"></a><a id="pl.180.27"></a><var>180.27</var>    Sec. 16. <b> REPEALER.</b><br/>
<a id="pl.180.28"></a><var>180.28</var>Minnesota Statutes 2006, section 298.405, subdivisions 2, 3, and 4, are repealed.<br/>
<br/>
<a id="bill.11.0.0"></a>

<a id="bill.11.1.0"></a><a id="pl.180.31"></a><var>180.31</var>    Section 1. Minnesota Statutes 2006, section 272.02, subdivision 13, is amended to read:<br/>
<a id="pl.180.32"></a><var>180.32</var>    Subd. 13. <b>Emergency shelters for victims of domestic abuse.</b> Property used in <br/>
<a id="pl.180.33"></a><var>180.33</var>a continuous program to provide emergency shelter for victims of domestic abuse is <br/>
<a id="pl.180.34"></a><var>180.34</var>exempt, provided the organization that owns and sponsors the shelter is exempt from <br/>
<a id="pl.181.1"></a><var>181.1</var>federal income taxation pursuant to section 501(c)(3) of the Internal Revenue Code <br/>
<a id="pl.181.2"></a><var>181.2</var>of 1986, as amended through December 31, 1992, notwithstanding the fact that the <br/>
<a id="pl.181.3"></a><var>181.3</var>sponsoring organization receives funding under Section 8 of the United States Housing <br/>
<a id="pl.181.4"></a><var>181.4</var>Act of 1937, as amended.<br/>
<a id="pl.181.5"></a><var>181.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.2.0"></a><a id="pl.181.6"></a><var>181.6</var>    Sec. 2. Minnesota Statutes 2006, section 272.02, subdivision 20, is amended to read:<br/>
<a id="pl.181.7"></a><var>181.7</var>    Subd. 20. <b>Transitional housing facilities.</b> Transitional housing facilities are <br/>
<a id="pl.181.8"></a><var>181.8</var>exempt. "Transitional housing facility" means a facility that meets the following <br/>
<a id="pl.181.9"></a><var>181.9</var>requirements. (i) It provides temporary housing to individuals, couples, or families. (ii) <br/>
<a id="pl.181.10"></a><var>181.10</var>It has the purpose of reuniting families and enabling parents or individuals to obtain <br/>
<a id="pl.181.11"></a><var>181.11</var>self-sufficiency, advance their education, get job training, or become employed in jobs <br/>
<a id="pl.181.12"></a><var>181.12</var>that provide a living wage. (iii) It provides support services such as child care, work <br/>
<a id="pl.181.13"></a><var>181.13</var>readiness training, and career development counseling; and a self-sufficiency program <br/>
<a id="pl.181.14"></a><var>181.14</var>with periodic monitoring of each resident's progress in completing the program's goals. <br/>
<a id="pl.181.15"></a><var>181.15</var>(iv) It provides services to a resident of the facility for at least three months but no longer <br/>
<a id="pl.181.16"></a><var>181.16</var>than three years, except residents enrolled in an educational or vocational institution or job <br/>
<a id="pl.181.17"></a><var>181.17</var>training program. These residents may receive services during the time they are enrolled <br/>
<a id="pl.181.18"></a><var>181.18</var>but in no event longer than four years. (v) It is owned and operated or under lease from a <br/>
<a id="pl.181.19"></a><var>181.19</var>unit of government or governmental agency under a property disposition program and <br/>
<a id="pl.181.20"></a><var>181.20</var>operated by one or more organizations exempt from federal income tax under section <br/>
<a id="pl.181.21"></a><var>181.21</var>501(c)(3) of the Internal Revenue Code of 1986, as amended through December 31, <br/>
<a id="pl.181.22"></a><var>181.22</var>1992. This exemption applies notwithstanding the fact that the sponsoring organization <br/>
<a id="pl.181.23"></a><var>181.23</var>receives financing by a direct federal loan or federally insured loan or a loan made by the <br/>
<a id="pl.181.24"></a><var>181.24</var>Minnesota Housing Finance Agency under the provisions of either Title II of the National <br/>
<a id="pl.181.25"></a><var>181.25</var>Housing Act, as amended, or the Minnesota Housing Finance Agency Law of 1971, <br/>
<a id="pl.181.26"></a><var>181.26</var>chapter 462A, or rules promulgated by the agency pursuant to it, and notwithstanding the <br/>
<a id="pl.181.27"></a><var>181.27</var>fact that the sponsoring organization receives funding under Section 8 of the United <br/>
<a id="pl.181.28"></a><var>181.28</var>States Housing Act of 1937, as amended.<br/>
<a id="pl.181.29"></a><var>181.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.3.0"></a><a id="pl.181.30"></a><var>181.30</var>    Sec. 3. Minnesota Statutes 2006, section 272.02, subdivision 21, is amended to read:<br/>
<a id="pl.181.31"></a><var>181.31</var>    Subd. 21. <b>Property used to provide computing resources to University of </b><br/>
<a id="pl.181.32"></a><var>181.32</var><b>Minnesota.</b> Real and personal property, including leasehold or other personal property <br/>
<a id="pl.181.33"></a><var>181.33</var>interests, is exempt if it is owned and operated by a corporation of which more than 50 <br/>
<a id="pl.181.34"></a><var>181.34</var>percent of the total voting power of the stock of the corporation is owned collectively by: <br/>
<a id="pl.182.1"></a><var>182.1</var>(i) the Board of Regents of the University of Minnesota, (ii) the University of Minnesota <br/>
<a id="pl.182.2"></a><var>182.2</var>Foundation, an organization exempt from federal income taxation under section 501(c)(3) <br/>
<a id="pl.182.3"></a><var>182.3</var>of the Internal Revenue Code of 1986, as amended through December 31, 1992, and (iii) <br/>
<a id="pl.182.4"></a><var>182.4</var>a corporation organized under chapter 317A, which by its articles of incorporation is <br/>
<a id="pl.182.5"></a><var>182.5</var>prohibited from providing pecuniary gain to any person or entity other than the regents <br/>
<a id="pl.182.6"></a><var>182.6</var>of the University of Minnesota; which property is used primarily to manage or provide <br/>
<a id="pl.182.7"></a><var>182.7</var>goods, services, or facilities utilizing or relating to large-scale advanced scientific <br/>
<a id="pl.182.8"></a><var>182.8</var>computing resources to the regents of the University of Minnesota and others.<br/>
<a id="pl.182.9"></a><var>182.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.4.0"></a><a id="pl.182.10"></a><var>182.10</var>    Sec. 4. Minnesota Statutes 2006, section 272.02, subdivision 27, is amended to read:<br/>
<a id="pl.182.11"></a><var>182.11</var>    Subd. 27. <b>Superior National Forest; recreational property for use by disabled </b><br/>
<a id="pl.182.12"></a><var>182.12</var><b>veterans.</b> Real and personal property is exempt if it is located in the Superior National <br/>
<a id="pl.182.13"></a><var>182.13</var>Forest, and owned or leased and operated by a nonprofit organization that is exempt <br/>
<a id="pl.182.14"></a><var>182.14</var>from federal income taxation under section 501(c)(3) of the Internal Revenue Code of <br/>
<a id="pl.182.15"></a><var>182.15</var>1986, as amended through December 31, 1992, and primarily used to provide recreational <br/>
<a id="pl.182.16"></a><var>182.16</var>opportunities for disabled veterans and their families.<br/>
<a id="pl.182.17"></a><var>182.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.5.0"></a><a id="pl.182.18"></a><var>182.18</var>    Sec. 5. Minnesota Statutes 2006, section 272.02, subdivision 31, is amended to read:<br/>
<a id="pl.182.19"></a><var>182.19</var>    Subd. 31. <b>Business incubator property.</b> Property owned by a nonprofit charitable <br/>
<a id="pl.182.20"></a><var>182.20</var>organization that qualifies for tax exemption under section 501(c)(3) of the Internal <br/>
<a id="pl.182.21"></a><var>182.21</var>Revenue Code of 1986, as amended through December 31, 1997, that is intended to be <br/>
<a id="pl.182.22"></a><var>182.22</var>used as a business incubator in a high-unemployment county, is exempt. As used in this <br/>
<a id="pl.182.23"></a><var>182.23</var>subdivision, a "business incubator" is a facility used for the development of nonretail <br/>
<a id="pl.182.24"></a><var>182.24</var>businesses, offering access to equipment, space, services, and advice to the tenant <br/>
<a id="pl.182.25"></a><var>182.25</var>businesses, for the purpose of encouraging economic development, diversification, and <br/>
<a id="pl.182.26"></a><var>182.26</var>job creation in the area served by the organization, and "high-unemployment county" is a <br/>
<a id="pl.182.27"></a><var>182.27</var>county that had an average annual unemployment rate of 7.9 percent or greater in 1997. <br/>
<a id="pl.182.28"></a><var>182.28</var>Property that qualifies for the exemption under this subdivision is limited to no more than <br/>
<a id="pl.182.29"></a><var>182.29</var>two contiguous parcels and structures that do not exceed in the aggregate 40,000 square <br/>
<a id="pl.182.30"></a><var>182.30</var>feet. This exemption expires after taxes payable in 2011.<br/>
<a id="pl.182.31"></a><var>182.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.6.0"></a><a id="pl.182.32"></a><var>182.32</var>    Sec. 6. Minnesota Statutes 2006, section 272.02, subdivision 49, is amended to read:<br/>
<a id="pl.183.1"></a><var>183.1</var>    Subd. 49. <b>Agricultural historical society property.</b> Property is exempt from <br/>
<a id="pl.183.2"></a><var>183.2</var>taxation if it is owned by a nonprofit charitable or educational organization that qualifies <br/>
<a id="pl.183.3"></a><var>183.3</var>for exemption under section 501(c)(3) of the Internal Revenue Code of 1986, as amended <br/>
<a id="pl.183.4"></a><var>183.4</var>through December 31, 2000, and meets the following criteria:<br/>
<a id="pl.183.5"></a><var>183.5</var>    (1) the property is primarily used for storing and exhibiting tools, equipment, and <br/>
<a id="pl.183.6"></a><var>183.6</var>artifacts useful in providing an understanding of local or regional agricultural history. <br/>
<a id="pl.183.7"></a><var>183.7</var>Primary use is determined each year based on the number of days the property is used <br/>
<a id="pl.183.8"></a><var>183.8</var>solely for storage and exhibition purposes;<br/>
<a id="pl.183.9"></a><var>183.9</var>    (2) the property is limited to a maximum of 20 acres per owner per county, but <br/>
<a id="pl.183.10"></a><var>183.10</var>includes the land and any taxable structures, fixtures, and equipment on the land;<br/>
<a id="pl.183.11"></a><var>183.11</var>    (3) the property is not used for a revenue-producing activity for more than ten days <br/>
<a id="pl.183.12"></a><var>183.12</var>in each calendar year; and<br/>
<a id="pl.183.13"></a><var>183.13</var>    (4) the property is not used for residential purposes on either a temporary or <br/>
<a id="pl.183.14"></a><var>183.14</var>permanent basis.<br/>
<a id="pl.183.15"></a><var>183.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.7.0"></a><a id="pl.183.16"></a><var>183.16</var>    Sec. 7. Minnesota Statutes 2006, section 272.03, subdivision 3, is amended to read:<br/>
<a id="pl.183.17"></a><var>183.17</var>    Subd. 3. <b>Construction of terms.</b> For the purposes of chapters 270 to 284, unless a <br/>
<a id="pl.183.18"></a><var>183.18</var>different meaning is indicated by the context, the words, phrases, and terms defined in <br/>
<a id="pl.183.19"></a><var>183.19</var>subdivisions 4 to 11 shall this section have the meanings given them.<br/>
<a id="pl.183.20"></a><var>183.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.8.0"></a><a id="pl.183.21"></a><var>183.21</var>    Sec. 8. Minnesota Statutes 2006, section 272.03, is amended by adding a subdivision <br/>
<a id="pl.183.22"></a><var>183.22</var>to read:<br/>
<a id="pl.183.23"></a><var>183.23</var>    Subd. 13. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br/>
<a id="pl.183.24"></a><var>183.24</var>Revenue Code" means the Internal Revenue Code as defined in section 289A.02, <br/>
<a id="pl.183.25"></a><var>183.25</var>subdivision 7.<br/>
<a id="pl.183.26"></a><var>183.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.9.0"></a><a id="pl.183.27"></a><var>183.27</var>    Sec. 9. <b>[273.105] INTERNAL REVENUE CODE.</b><br/>
<a id="pl.183.28"></a><var>183.28</var>    Unless specifically defined otherwise, for purposes of this chapter, "Internal Revenue <br/>
<a id="pl.183.29"></a><var>183.29</var>Code" means the Internal Revenue Code as defined in section 289A.02, subdivision 7.<br/>
<a id="pl.183.30"></a><var>183.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.10.0"></a><a id="pl.183.31"></a><var>183.31</var>    Sec. 10. Minnesota Statutes 2006, section 273.11, subdivision 8, is amended to read:<br/>
<a id="pl.184.1"></a><var>184.1</var>    Subd. 8. <b>Limited equity cooperative apartments.</b> For the purposes of this <br/>
<a id="pl.184.2"></a><var>184.2</var>subdivision, the terms defined in this subdivision have the meanings given them.<br/>
<a id="pl.184.3"></a><var>184.3</var>    A "limited equity cooperative" is a corporation organized under chapter 308A or <br/>
<a id="pl.184.4"></a><var>184.4</var>308B, which has as its primary purpose the provision of housing and related services to <br/>
<a id="pl.184.5"></a><var>184.5</var>its members which meets one of the following criteria with respect to the income of its <br/>
<a id="pl.184.6"></a><var>184.6</var>members: (1) a minimum of 75 percent of members must have incomes at or less than <br/>
<a id="pl.184.7"></a><var>184.7</var>90 percent of area median income, (2) a minimum of 40 percent of members must have <br/>
<a id="pl.184.8"></a><var>184.8</var>incomes at or less than 60 percent of area median income, or (3) a minimum of 20 percent <br/>
<a id="pl.184.9"></a><var>184.9</var>of members must have incomes at or less than 50 percent of area median income. For <br/>
<a id="pl.184.10"></a><var>184.10</var>purposes of this clause, "member income" shall mean the income of a member existing at <br/>
<a id="pl.184.11"></a><var>184.11</var>the time the member acquires cooperative membership, and median income shall mean <br/>
<a id="pl.184.12"></a><var>184.12</var>the St. Paul-Minneapolis metropolitan area median income as determined by the United <br/>
<a id="pl.184.13"></a><var>184.13</var>States Department of Housing and Urban Development. It must also meet the following <br/>
<a id="pl.184.14"></a><var>184.14</var>requirements:<br/>
<a id="pl.184.15"></a><var>184.15</var>    (a) The articles of incorporation set the sale price of occupancy entitling cooperative <br/>
<a id="pl.184.16"></a><var>184.16</var>shares or memberships at no more than a transfer value determined as provided in the <br/>
<a id="pl.184.17"></a><var>184.17</var>articles. That value may not exceed the sum of the following:<br/>
<a id="pl.184.18"></a><var>184.18</var>    (1) the consideration paid for the membership or shares by the first occupant of the <br/>
<a id="pl.184.19"></a><var>184.19</var>unit, as shown in the records of the corporation;<br/>
<a id="pl.184.20"></a><var>184.20</var>    (2) the fair market value, as shown in the records of the corporation, of any <br/>
<a id="pl.184.21"></a><var>184.21</var>improvements to the real property that were installed at the sole expense of the member <br/>
<a id="pl.184.22"></a><var>184.22</var>with the prior approval of the board of directors;<br/>
<a id="pl.184.23"></a><var>184.23</var>    (3) accumulated interest, or an inflation allowance not to exceed the greater of a ten <br/>
<a id="pl.184.24"></a><var>184.24</var>percent annual noncompounded increase on the consideration paid for the membership or <br/>
<a id="pl.184.25"></a><var>184.25</var>share by the first occupant of the unit, or the amount that would have been paid on that <br/>
<a id="pl.184.26"></a><var>184.26</var>consideration if interest had been paid on it at the rate of the percentage increase in the <br/>
<a id="pl.184.27"></a><var>184.27</var>revised Consumer Price Index for All Urban Consumers for the Minneapolis-St. Paul <br/>
<a id="pl.184.28"></a><var>184.28</var>metropolitan area prepared by the United States Department of Labor, provided that the <br/>
<a id="pl.184.29"></a><var>184.29</var>amount determined pursuant to this clause may not exceed $500 for each year or fraction <br/>
<a id="pl.184.30"></a><var>184.30</var>of a year the membership or share was owned; plus<br/>
<a id="pl.184.31"></a><var>184.31</var>    (4) real property capital contributions shown in the records of the corporation to <br/>
<a id="pl.184.32"></a><var>184.32</var>have been paid by the transferor member and previous holders of the same membership, <br/>
<a id="pl.184.33"></a><var>184.33</var>or of separate memberships that had entitled occupancy to the unit of the member <br/>
<a id="pl.184.34"></a><var>184.34</var>involved. These contributions include contributions to a corporate reserve account the <br/>
<a id="pl.184.35"></a><var>184.35</var>use of which is restricted to real property improvements or acquisitions, contributions to <br/>
<a id="pl.184.36"></a><var>184.36</var>the corporation which are used for real property improvements or acquisitions, and the <br/>
<a id="pl.185.1"></a><var>185.1</var>amount of principal amortized by the corporation on its indebtedness due to the financing <br/>
<a id="pl.185.2"></a><var>185.2</var>of real property acquisition or improvement or the averaging of principal paid by the <br/>
<a id="pl.185.3"></a><var>185.3</var>corporation over the term of its real property-related indebtedness.<br/>
<a id="pl.185.4"></a><var>185.4</var>    (b) The articles of incorporation require that the board of directors limit the purchase <br/>
<a id="pl.185.5"></a><var>185.5</var>price of stock or membership interests for new member-occupants or resident shareholders <br/>
<a id="pl.185.6"></a><var>185.6</var>to an amount which does not exceed the transfer value for the membership or stock as <br/>
<a id="pl.185.7"></a><var>185.7</var>defined in clause (a).<br/>
<a id="pl.185.8"></a><var>185.8</var>    (c) The articles of incorporation require that the total distribution out of capital to a <br/>
<a id="pl.185.9"></a><var>185.9</var>member shall not exceed that transfer value.<br/>
<a id="pl.185.10"></a><var>185.10</var>    (d) The articles of incorporation require that upon liquidation of the corporation any <br/>
<a id="pl.185.11"></a><var>185.11</var>assets remaining after retirement of corporate debts and distribution to members will <br/>
<a id="pl.185.12"></a><var>185.12</var>be conveyed to a charitable organization described in section 501(c)(3) of the Internal <br/>
<a id="pl.185.13"></a><var>185.13</var>Revenue Code of 1986, as amended through December 31, 1992, or a public agency.<br/>
<a id="pl.185.14"></a><var>185.14</var>    A "limited equity cooperative apartment" is a dwelling unit owned by a limited <br/>
<a id="pl.185.15"></a><var>185.15</var>equity cooperative.<br/>
<a id="pl.185.16"></a><var>185.16</var>    "Occupancy entitling cooperative share or membership" is the ownership interest <br/>
<a id="pl.185.17"></a><var>185.17</var>in a cooperative organization which entitles the holder to an exclusive right to occupy a <br/>
<a id="pl.185.18"></a><var>185.18</var>dwelling unit owned or leased by the cooperative.<br/>
<a id="pl.185.19"></a><var>185.19</var>    For purposes of taxation, the assessor shall value a unit owned by a limited equity <br/>
<a id="pl.185.20"></a><var>185.20</var>cooperative at the lesser of its market value or the value determined by capitalizing the net <br/>
<a id="pl.185.21"></a><var>185.21</var>operating income of a comparable apartment operated on a rental basis at the capitalization <br/>
<a id="pl.185.22"></a><var>185.22</var>rate used in valuing comparable buildings that are not limited equity cooperatives. If a <br/>
<a id="pl.185.23"></a><var>185.23</var>cooperative fails to operate in accordance with the provisions of clauses (a) to (d), the <br/>
<a id="pl.185.24"></a><var>185.24</var>property shall be subject to additional property taxes in the amount of the difference <br/>
<a id="pl.185.25"></a><var>185.25</var>between the taxes determined in accordance with this subdivision for the last ten years that <br/>
<a id="pl.185.26"></a><var>185.26</var>the property had been assessed pursuant to this subdivision and the amount that would <br/>
<a id="pl.185.27"></a><var>185.27</var>have been paid if the provisions of this subdivision had not applied to it. The additional <br/>
<a id="pl.185.28"></a><var>185.28</var>taxes, plus interest at the rate specified in section 
         <statute_ref>549.09</statute_ref>, shall be extended against the <br/>
<a id="pl.185.29"></a><var>185.29</var>property on the tax list for the current year.<br/>
<a id="pl.185.30"></a><var>185.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.11.0"></a><a id="pl.185.31"></a><var>185.31</var>    Sec. 11. Minnesota Statutes 2006, section 273.124, subdivision 6, is amended to read:<br/>
<a id="pl.185.32"></a><var>185.32</var>    Subd. 6. <b>Leasehold cooperatives.</b> When one or more dwellings or one or more <br/>
<a id="pl.185.33"></a><var>185.33</var>buildings which each contain several dwelling units is owned by a nonprofit corporation <br/>
<a id="pl.185.34"></a><var>185.34</var>subject to the provisions of chapter 317A and qualifying under section 501(c)(3) or <br/>
<a id="pl.185.35"></a><var>185.35</var>501(c)(4) of the Internal Revenue Code of 1986, as amended through December 31, <br/>
<a id="pl.186.1"></a><var>186.1</var>1990, or a limited partnership which corporation or partnership operates the property in <br/>
<a id="pl.186.2"></a><var>186.2</var>conjunction with a cooperative association, and has received public financing, homestead <br/>
<a id="pl.186.3"></a><var>186.3</var>treatment may be claimed by the cooperative association on behalf of the members of <br/>
<a id="pl.186.4"></a><var>186.4</var>the cooperative for each dwelling unit occupied by a member of the cooperative. The <br/>
<a id="pl.186.5"></a><var>186.5</var>cooperative association must provide the assessor with the Social Security numbers of <br/>
<a id="pl.186.6"></a><var>186.6</var>those members. To qualify for the treatment provided by this subdivision, the following <br/>
<a id="pl.186.7"></a><var>186.7</var>conditions must be met:<br/>
<a id="pl.186.8"></a><var>186.8</var>    (a) the cooperative association must be organized under chapter 308A or 308B and <br/>
<a id="pl.186.9"></a><var>186.9</var>all voting members of the board of directors must be resident tenants of the cooperative <br/>
<a id="pl.186.10"></a><var>186.10</var>and must be elected by the resident tenants of the cooperative;<br/>
<a id="pl.186.11"></a><var>186.11</var>    (b) the cooperative association must have a lease for occupancy of the property for a <br/>
<a id="pl.186.12"></a><var>186.12</var>term of at least 20 years, which permits the cooperative association, while not in default on <br/>
<a id="pl.186.13"></a><var>186.13</var>the lease, to participate materially in the management of the property, including material <br/>
<a id="pl.186.14"></a><var>186.14</var>participation in establishing budgets, setting rent levels, and hiring and supervising a <br/>
<a id="pl.186.15"></a><var>186.15</var>management agent;<br/>
<a id="pl.186.16"></a><var>186.16</var>    (c) to the extent permitted under state or federal law, the cooperative association <br/>
<a id="pl.186.17"></a><var>186.17</var>must have a right under a written agreement with the owner to purchase the property if the <br/>
<a id="pl.186.18"></a><var>186.18</var>owner proposes to sell it; if the cooperative association does not purchase the property it is <br/>
<a id="pl.186.19"></a><var>186.19</var>offered for sale, the owner may not subsequently sell the property to another purchaser at <br/>
<a id="pl.186.20"></a><var>186.20</var>a price lower than the price at which it was offered for sale to the cooperative association <br/>
<a id="pl.186.21"></a><var>186.21</var>unless the cooperative association approves the sale;<br/>
<a id="pl.186.22"></a><var>186.22</var>    (d) a minimum of 40 percent of the cooperative association's members must have <br/>
<a id="pl.186.23"></a><var>186.23</var>incomes at or less than 60 percent of area median gross income as determined by the <br/>
<a id="pl.186.24"></a><var>186.24</var>United States Secretary of Housing and Urban Development under section 142(d)(2)(B) <br/>
<a id="pl.186.25"></a><var>186.25</var>of the Internal Revenue Code of 1986, as amended through December 31, 1991. For <br/>
<a id="pl.186.26"></a><var>186.26</var>purposes of this clause, "member income" means the income of a member existing at the <br/>
<a id="pl.186.27"></a><var>186.27</var>time the member acquires cooperative membership;<br/>
<a id="pl.186.28"></a><var>186.28</var>    (e) if a limited partnership owns the property, it must include as the managing <br/>
<a id="pl.186.29"></a><var>186.29</var>general partner a nonprofit organization operating under the provisions of chapter 317A <br/>
<a id="pl.186.30"></a><var>186.30</var>and qualifying under section 501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, <br/>
<a id="pl.186.31"></a><var>186.31</var>as amended through December 31, 1990, and the limited partnership agreement must <br/>
<a id="pl.186.32"></a><var>186.32</var>provide that the managing general partner have sufficient powers so that it materially <br/>
<a id="pl.186.33"></a><var>186.33</var>participates in the management and control of the limited partnership;<br/>
<a id="pl.186.34"></a><var>186.34</var>    (f) prior to becoming a member of a leasehold cooperative described in this <br/>
<a id="pl.186.35"></a><var>186.35</var>subdivision, a person must have received notice that (1) describes leasehold cooperative <br/>
<a id="pl.186.36"></a><var>186.36</var>property in plain language, including but not limited to the effects of classification <br/>
<a id="pl.187.1"></a><var>187.1</var>under this subdivision on rents, property taxes and tax credits or refunds, and operating <br/>
<a id="pl.187.2"></a><var>187.2</var>expenses, and (2) states that copies of the articles of incorporation and bylaws of the <br/>
<a id="pl.187.3"></a><var>187.3</var>cooperative association, the lease between the owner and the cooperative association, a <br/>
<a id="pl.187.4"></a><var>187.4</var>sample sublease between the cooperative association and a tenant, and, if the owner is a <br/>
<a id="pl.187.5"></a><var>187.5</var>partnership, a copy of the limited partnership agreement, can be obtained upon written <br/>
<a id="pl.187.6"></a><var>187.6</var>request at no charge from the owner, and the owner must send or deliver the materials <br/>
<a id="pl.187.7"></a><var>187.7</var>within seven days after receiving any request;<br/>
<a id="pl.187.8"></a><var>187.8</var>    (g) if a dwelling unit of a building was occupied on the 60th day prior to the date on <br/>
<a id="pl.187.9"></a><var>187.9</var>which the unit became leasehold cooperative property described in this subdivision, the <br/>
<a id="pl.187.10"></a><var>187.10</var>notice described in paragraph (f) must have been sent by first class mail to the occupant of <br/>
<a id="pl.187.11"></a><var>187.11</var>the unit at least 60 days prior to the date on which the unit became leasehold cooperative <br/>
<a id="pl.187.12"></a><var>187.12</var>property. For purposes of the notice under this paragraph, the copies of the documents <br/>
<a id="pl.187.13"></a><var>187.13</var>referred to in paragraph (f) may be in proposed version, provided that any subsequent <br/>
<a id="pl.187.14"></a><var>187.14</var>material alteration of those documents made after the occupant has requested a copy <br/>
<a id="pl.187.15"></a><var>187.15</var>shall be disclosed to any occupant who has requested a copy of the document. Copies of <br/>
<a id="pl.187.16"></a><var>187.16</var>the articles of incorporation and certificate of limited partnership shall be filed with the <br/>
<a id="pl.187.17"></a><var>187.17</var>secretary of state after the expiration of the 60-day period unless the change to leasehold <br/>
<a id="pl.187.18"></a><var>187.18</var>cooperative status does not proceed;<br/>
<a id="pl.187.19"></a><var>187.19</var>    (h) the county attorney of the county in which the property is located must certify to <br/>
<a id="pl.187.20"></a><var>187.20</var>the assessor that the property meets the requirements of this subdivision;<br/>
<a id="pl.187.21"></a><var>187.21</var>    (i) the public financing received must be from at least one of the following sources:<br/>
<a id="pl.187.22"></a><var>187.22</var>    (1) tax increment financing proceeds used for the acquisition or rehabilitation of the <br/>
<a id="pl.187.23"></a><var>187.23</var>building or interest rate write-downs relating to the acquisition of the building;<br/>
<a id="pl.187.24"></a><var>187.24</var>    (2) government issued bonds exempt from taxes under section 103 of the Internal <br/>
<a id="pl.187.25"></a><var>187.25</var>Revenue Code of 1986, as amended through December 31, 1991, the proceeds of which <br/>
<a id="pl.187.26"></a><var>187.26</var>are used for the acquisition or rehabilitation of the building;<br/>
<a id="pl.187.27"></a><var>187.27</var>    (3) programs under section 221(d)(3), 202, or 236, of Title II of the National <br/>
<a id="pl.187.28"></a><var>187.28</var>Housing Act;<br/>
<a id="pl.187.29"></a><var>187.29</var>    (4) rental housing program funds under Section 8 of the United States Housing Act <br/>
<a id="pl.187.30"></a><var>187.30</var>of 1937, as amended, or the market rate family graduated payment mortgage program <br/>
<a id="pl.187.31"></a><var>187.31</var>funds administered by the Minnesota Housing Finance Agency that are used for the <br/>
<a id="pl.187.32"></a><var>187.32</var>acquisition or rehabilitation of the building;<br/>
<a id="pl.187.33"></a><var>187.33</var>    (5) low-income housing credit under section 42 of the Internal Revenue Code of <br/>
<a id="pl.187.34"></a><var>187.34</var>1986, as amended through December 31, 1991;<br/>
<a id="pl.187.35"></a><var>187.35</var>    (6) public financing provided by a local government used for the acquisition or <br/>
<a id="pl.187.36"></a><var>187.36</var>rehabilitation of the building, including grants or loans from (i) federal community <br/>
<a id="pl.188.1"></a><var>188.1</var>development block grants; (ii) HOME block grants; or (iii) residential rental bonds issued <br/>
<a id="pl.188.2"></a><var>188.2</var>under chapter 474A; or<br/>
<a id="pl.188.3"></a><var>188.3</var>    (7) other rental housing program funds provided by the Minnesota Housing Finance <br/>
<a id="pl.188.4"></a><var>188.4</var>Agency for the acquisition or rehabilitation of the building;<br/>
<a id="pl.188.5"></a><var>188.5</var>    (j) at the time of the initial request for homestead classification or of any transfer of <br/>
<a id="pl.188.6"></a><var>188.6</var>ownership of the property, the governing body of the municipality in which the property is <br/>
<a id="pl.188.7"></a><var>188.7</var>located must hold a public hearing and make the following findings:<br/>
<a id="pl.188.8"></a><var>188.8</var>    (1) that the granting of the homestead treatment of the apartment's units will <br/>
<a id="pl.188.9"></a><var>188.9</var>facilitate safe, clean, affordable housing for the cooperative members that would otherwise <br/>
<a id="pl.188.10"></a><var>188.10</var>not be available absent the homestead designation;<br/>
<a id="pl.188.11"></a><var>188.11</var>    (2) that the owner has presented information satisfactory to the governing body <br/>
<a id="pl.188.12"></a><var>188.12</var>showing that the savings garnered from the homestead designation of the units will be <br/>
<a id="pl.188.13"></a><var>188.13</var>used to reduce tenant's rents or provide a level of furnishing or maintenance not possible <br/>
<a id="pl.188.14"></a><var>188.14</var>absent the designation; and<br/>
<a id="pl.188.15"></a><var>188.15</var>    (3) that the requirements of paragraphs (b), (d), and (i) have been met.<br/>
<a id="pl.188.16"></a><var>188.16</var>    Homestead treatment must be afforded to units occupied by members of the <br/>
<a id="pl.188.17"></a><var>188.17</var>cooperative association and the units must be assessed as provided in subdivision 3, <br/>
<a id="pl.188.18"></a><var>188.18</var>provided that any unit not so occupied shall be classified and assessed pursuant to the <br/>
<a id="pl.188.19"></a><var>188.19</var>appropriate class. No more than three acres of land may, for assessment purposes, <br/>
<a id="pl.188.20"></a><var>188.20</var>be included with each dwelling unit that qualifies for homestead treatment under this <br/>
<a id="pl.188.21"></a><var>188.21</var>subdivision.<br/>
<a id="pl.188.22"></a><var>188.22</var>    When dwelling units no longer qualify under this subdivision, the current owner <br/>
<a id="pl.188.23"></a><var>188.23</var>must notify the assessor within 60 days. Failure to notify the assessor within 60 days shall <br/>
<a id="pl.188.24"></a><var>188.24</var>result in the loss of benefits under this subdivision for taxes payable in the year that the <br/>
<a id="pl.188.25"></a><var>188.25</var>failure is discovered. For these purposes, "benefits under this subdivision" means the <br/>
<a id="pl.188.26"></a><var>188.26</var>difference in the net tax capacity of the units which no longer qualify as computed under <br/>
<a id="pl.188.27"></a><var>188.27</var>this subdivision and as computed under the otherwise applicable law, times the local tax <br/>
<a id="pl.188.28"></a><var>188.28</var>rate applicable to the building for that taxes payable year. Upon discovery of a failure to <br/>
<a id="pl.188.29"></a><var>188.29</var>notify, the assessor shall inform the auditor of the difference in net tax capacity for the <br/>
<a id="pl.188.30"></a><var>188.30</var>building or buildings in which units no longer qualify, and the auditor shall calculate the <br/>
<a id="pl.188.31"></a><var>188.31</var>benefits under this subdivision. Such amount, plus a penalty equal to 100 percent of that <br/>
<a id="pl.188.32"></a><var>188.32</var>amount, shall then be demanded of the building's owner. The property owner may appeal <br/>
<a id="pl.188.33"></a><var>188.33</var>the county's determination by serving copies of a petition for review with county officials <br/>
<a id="pl.188.34"></a><var>188.34</var>as provided in section 
         <statute_ref>278.01</statute_ref> and filing a proof of service as provided in section 
         <statute_ref>278.01</statute_ref> <br/>
<a id="pl.188.35"></a><var>188.35</var>with the Minnesota Tax Court within 60 days of the date of the notice from the county. <br/>
<a id="pl.188.36"></a><var>188.36</var>The appeal shall be governed by the Tax Court procedures provided in chapter 271, for <br/>
<a id="pl.189.1"></a><var>189.1</var>cases relating to the tax laws as defined in section 
         <statute_ref>271.01, subdivision 5</statute_ref>; disregarding <br/>
<a id="pl.189.2"></a><var>189.2</var>sections 
         <statute_ref>273.125, subdivision 5</statute_ref>, and 
         <statute_ref>278.03</statute_ref>, but including section 
         <statute_ref>278.05, subdivision 2</statute_ref>. <br/>
<a id="pl.189.3"></a><var>189.3</var>If the amount of the benefits under this subdivision and penalty are not paid within 60 <br/>
<a id="pl.189.4"></a><var>189.4</var>days, and if no appeal has been filed, the county auditor shall certify the amount of the <br/>
<a id="pl.189.5"></a><var>189.5</var>benefit and penalty to the succeeding year's tax list to be collected as part of the property <br/>
<a id="pl.189.6"></a><var>189.6</var>taxes on the affected buildings.<br/>
<a id="pl.189.7"></a><var>189.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.12.0"></a><a id="pl.189.8"></a><var>189.8</var>    Sec. 12. Minnesota Statutes 2006, section 273.128, subdivision 1, as amended by Laws <br/>
<a id="pl.189.9"></a><var>189.9</var>2008, chapter 154, article 2, section 10, is amended to read:<br/>
<a id="pl.189.10"></a><var>189.10</var>    Subdivision 1.  <b>Requirement.</b> Low-income rental property classified as class 4d <br/>
<a id="pl.189.11"></a><var>189.11</var>under section 
         <statute_ref>273.13, subdivision 25</statute_ref>, is entitled to valuation under this section if at least 20 <br/>
<a id="pl.189.12"></a><var>189.12</var>percent of the units in the rental housing property meet any of the following qualifications: <br/>
<a id="pl.189.13"></a><var>189.13</var>    (1) the units are subject to a housing assistance payments contract under Section 8 <br/>
<a id="pl.189.14"></a><var>189.14</var>of the United States Housing Act of 1937, as amended; <br/>
<a id="pl.189.15"></a><var>189.15</var>    (2) the units are rent-restricted and income-restricted units of a qualified low-income <br/>
<a id="pl.189.16"></a><var>189.16</var>housing project receiving tax credits under section 42(g) of the Internal Revenue Code <br/>
<a id="pl.189.17"></a><var>189.17</var>of 1986, as amended; <br/>
<a id="pl.189.18"></a><var>189.18</var>    (3) the units are financed by the Rural Housing Service of the United States <br/>
<a id="pl.189.19"></a><var>189.19</var>Department of Agriculture and receive payments under the rental assistance program <br/>
<a id="pl.189.20"></a><var>189.20</var>pursuant to section 521(a) of the Housing Act of 1949, as amended; or <br/>
<a id="pl.189.21"></a><var>189.21</var>    (4) the units are subject to rent and income restrictions under the terms of financial <br/>
<a id="pl.189.22"></a><var>189.22</var>assistance provided to the rental housing property by the federal government or the <br/>
<a id="pl.189.23"></a><var>189.23</var>state of Minnesota, or a local unit of government, as evidenced by a document recorded <br/>
<a id="pl.189.24"></a><var>189.24</var>against the property. <br/>
<a id="pl.189.25"></a><var>189.25</var>    The restrictions must require assisted units to be occupied by residents whose <br/>
<a id="pl.189.26"></a><var>189.26</var>household income at the time of initial occupancy does not exceed 60 percent of the <br/>
<a id="pl.189.27"></a><var>189.27</var>greater of area or state median income, adjusted for family size, as determined by the <br/>
<a id="pl.189.28"></a><var>189.28</var>United States Department of Housing and Urban Development. The restriction must also <br/>
<a id="pl.189.29"></a><var>189.29</var>require the rents for assisted units to not exceed 30 percent of 60 percent of the greater of <br/>
<a id="pl.189.30"></a><var>189.30</var>area or state median income, adjusted for family size, as determined by the United States <br/>
<a id="pl.189.31"></a><var>189.31</var>Department of Housing and Urban Development. <br/>
<a id="pl.189.32"></a><var>189.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.13.0"></a><a id="pl.189.33"></a><var>189.33</var>    Sec. 13. Minnesota Statutes 2006, section 273.13, subdivision 25, as amended by Laws <br/>
<a id="pl.189.34"></a><var>189.34</var>2008, chapter 154, article 2, section 13, is amended to read:<br/>
<a id="pl.190.1"></a><var>190.1</var>    Subd. 25.  <b>Class 4.</b> (a) Class 4a is residential real estate containing four or more <br/>
<a id="pl.190.2"></a><var>190.2</var>units and used or held for use by the owner or by the tenants or lessees of the owner <br/>
<a id="pl.190.3"></a><var>190.3</var>as a residence for rental periods of 30 days or more, excluding property qualifying for <br/>
<a id="pl.190.4"></a><var>190.4</var>class 4d. Class 4a also includes hospitals licensed under sections 
         <statute_ref>144.50</statute_ref> to 
         <statute_ref>144.56</statute_ref>, other <br/>
<a id="pl.190.5"></a><var>190.5</var>than hospitals exempt under section 
         <statute_ref>272.02</statute_ref>, and contiguous property used for hospital <br/>
<a id="pl.190.6"></a><var>190.6</var>purposes, without regard to whether the property has been platted or subdivided. The <br/>
<a id="pl.190.7"></a><var>190.7</var>market value of class 4a property has a class rate of 1.25 percent. <br/>
<a id="pl.190.8"></a><var>190.8</var>    (b) Class 4b includes: <br/>
<a id="pl.190.9"></a><var>190.9</var>    (1) residential real estate containing less than four units that does not qualify as class <br/>
<a id="pl.190.10"></a><var>190.10</var>4bb, other than seasonal residential recreational property; <br/>
<a id="pl.190.11"></a><var>190.11</var>    (2) manufactured homes not classified under any other provision; <br/>
<a id="pl.190.12"></a><var>190.12</var>    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead <br/>
<a id="pl.190.13"></a><var>190.13</var>farm classified under subdivision 23, paragraph (b) containing two or three units; and <br/>
<a id="pl.190.14"></a><var>190.14</var>    (4) unimproved property that is classified residential as determined under subdivision <br/>
<a id="pl.190.15"></a><var>190.15</var>33. <br/>
<a id="pl.190.16"></a><var>190.16</var>    The market value of class 4b property has a class rate of 1.25 percent. <br/>
<a id="pl.190.17"></a><var>190.17</var>    (c) Class 4bb includes: <br/>
<a id="pl.190.18"></a><var>190.18</var>    (1) nonhomestead residential real estate containing one unit, other than seasonal <br/>
<a id="pl.190.19"></a><var>190.19</var>residential recreational property; and <br/>
<a id="pl.190.20"></a><var>190.20</var>    (2) a single family dwelling, garage, and surrounding one acre of property on a <br/>
<a id="pl.190.21"></a><var>190.21</var>nonhomestead farm classified under subdivision 23, paragraph (b). <br/>
<a id="pl.190.22"></a><var>190.22</var>    Class 4bb property has the same class rates as class 1a property under subdivision 22. <br/>
<a id="pl.190.23"></a><var>190.23</var>    Property that has been classified as seasonal residential recreational property at <br/>
<a id="pl.190.24"></a><var>190.24</var>any time during which it has been owned by the current owner or spouse of the current <br/>
<a id="pl.190.25"></a><var>190.25</var>owner does not qualify for class 4bb. <br/>
<a id="pl.190.26"></a><var>190.26</var>    (d) Class 4c property includes: <br/>
<a id="pl.190.27"></a><var>190.27</var>    (1) except as provided in subdivision 22, paragraph (c), or subdivision 23, paragraph <br/>
<a id="pl.190.28"></a><var>190.28</var>(b), clause (1), real and personal property devoted to temporary and seasonal residential <br/>
<a id="pl.190.29"></a><var>190.29</var>occupancy for recreation purposes, including real and personal property devoted to <br/>
<a id="pl.190.30"></a><var>190.30</var>temporary and seasonal residential occupancy for recreation purposes and not devoted to <br/>
<a id="pl.190.31"></a><var>190.31</var>commercial purposes for more than 250 days in the year preceding the year of assessment. <br/>
<a id="pl.190.32"></a><var>190.32</var>For purposes of this clause, property is devoted to a commercial purpose on a specific <br/>
<a id="pl.190.33"></a><var>190.33</var>day if any portion of the property is used for residential occupancy, and a fee is charged <br/>
<a id="pl.190.34"></a><var>190.34</var>for residential occupancy. Class 4c property must contain three or more rental units. A <br/>
<a id="pl.190.35"></a><var>190.35</var>"rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual <br/>
<a id="pl.190.36"></a><var>190.36</var>camping site equipped with water and electrical hookups for recreational vehicles. Class <br/>
<a id="pl.191.1"></a><var>191.1</var>4c property must provide recreational activities such as renting ice fishing houses, boats <br/>
<a id="pl.191.2"></a><var>191.2</var>and motors, snowmobiles, downhill or cross-country ski equipment; provide marina <br/>
<a id="pl.191.3"></a><var>191.3</var>services, launch services, or guide services; or sell bait and fishing tackle. A camping <br/>
<a id="pl.191.4"></a><var>191.4</var>pad offered for rent by a property that otherwise qualifies for class 4c is also class 4c <br/>
<a id="pl.191.5"></a><var>191.5</var>regardless of the term of the rental agreement, as long as the use of the camping pad <br/>
<a id="pl.191.6"></a><var>191.6</var>does not exceed 250 days. In order for a property to be classified as class 4c, seasonal <br/>
<a id="pl.191.7"></a><var>191.7</var>residential recreational for commercial purposes, at least 40 percent of the annual gross <br/>
<a id="pl.191.8"></a><var>191.8</var>lodging receipts related to the property must be from business conducted during 90 <br/>
<a id="pl.191.9"></a><var>191.9</var>consecutive days and either (i) at least 60 percent of all paid bookings by lodging guests <br/>
<a id="pl.191.10"></a><var>191.10</var>during the year must be for periods of at least two consecutive nights; or (ii) at least 20 <br/>
<a id="pl.191.11"></a><var>191.11</var>percent of the annual gross receipts must be from charges for rental of fish houses, boats <br/>
<a id="pl.191.12"></a><var>191.12</var>and motors, snowmobiles, downhill or cross-country ski equipment, or charges for marina <br/>
<a id="pl.191.13"></a><var>191.13</var>services, launch services, and guide services, or the sale of bait and fishing tackle. For <br/>
<a id="pl.191.14"></a><var>191.14</var>purposes of this determination, a paid booking of five or more nights shall be counted as <br/>
<a id="pl.191.15"></a><var>191.15</var>two bookings. Class 4c also includes commercial use real property used exclusively <br/>
<a id="pl.191.16"></a><var>191.16</var>for recreational purposes in conjunction with class 4c property devoted to temporary <br/>
<a id="pl.191.17"></a><var>191.17</var>and seasonal residential occupancy for recreational purposes, up to a total of two acres, <br/>
<a id="pl.191.18"></a><var>191.18</var>provided the property is not devoted to commercial recreational use for more than 250 <br/>
<a id="pl.191.19"></a><var>191.19</var>days in the year preceding the year of assessment and is located within two miles of the <br/>
<a id="pl.191.20"></a><var>191.20</var>class 4c property with which it is used. Owners of real and personal property devoted <br/>
<a id="pl.191.21"></a><var>191.21</var>to temporary and seasonal residential occupancy for recreation purposes and all or a <br/>
<a id="pl.191.22"></a><var>191.22</var>portion of which was devoted to commercial purposes for not more than 250 days in the <br/>
<a id="pl.191.23"></a><var>191.23</var>year preceding the year of assessment desiring classification as class 4c, must submit a <br/>
<a id="pl.191.24"></a><var>191.24</var>declaration to the assessor designating the cabins or units occupied for 250 days or less in <br/>
<a id="pl.191.25"></a><var>191.25</var>the year preceding the year of assessment by January 15 of the assessment year. Those <br/>
<a id="pl.191.26"></a><var>191.26</var>cabins or units and a proportionate share of the land on which they are located must be <br/>
<a id="pl.191.27"></a><var>191.27</var>designated class 4c as otherwise provided. The remainder of the cabins or units and <br/>
<a id="pl.191.28"></a><var>191.28</var>a proportionate share of the land on which they are located will be designated as class <br/>
<a id="pl.191.29"></a><var>191.29</var>3a. The owner of property desiring designation as class 4c property must provide guest <br/>
<a id="pl.191.30"></a><var>191.30</var>registers or other records demonstrating that the units for which class 4c designation is <br/>
<a id="pl.191.31"></a><var>191.31</var>sought were not occupied for more than 250 days in the year preceding the assessment if <br/>
<a id="pl.191.32"></a><var>191.32</var>so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, <br/>
<a id="pl.191.33"></a><var>191.33</var>(4) conference center or meeting room, and (5) other nonresidential facility operated on a <br/>
<a id="pl.191.34"></a><var>191.34</var>commercial basis not directly related to temporary and seasonal residential occupancy for <br/>
<a id="pl.191.35"></a><var>191.35</var>recreation purposes does not qualify for class 4c; <br/>
<a id="pl.191.36"></a><var>191.36</var>    (2) qualified property used as a golf course if: <br/>
<a id="pl.192.1"></a><var>192.1</var>    (i) it is open to the public on a daily fee basis. It may charge membership fees or <br/>
<a id="pl.192.2"></a><var>192.2</var>dues, but a membership fee may not be required in order to use the property for golfing, <br/>
<a id="pl.192.3"></a><var>192.3</var>and its green fees for golfing must be comparable to green fees typically charged by <br/>
<a id="pl.192.4"></a><var>192.4</var>municipal courses; and <br/>
<a id="pl.192.5"></a><var>192.5</var>    (ii) it meets the requirements of section 
         <statute_ref>273.112, subdivision 3</statute_ref>, paragraph (d). <br/>
<a id="pl.192.6"></a><var>192.6</var>    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction <br/>
<a id="pl.192.7"></a><var>192.7</var>with the golf course is classified as class 3a property; <br/>
<a id="pl.192.8"></a><var>192.8</var>    (3) real property up to a maximum of three acres of land owned and used by a <br/>
<a id="pl.192.9"></a><var>192.9</var>nonprofit community service oriented organization and that is not used for residential <br/>
<a id="pl.192.10"></a><var>192.10</var>purposes on either a temporary or permanent basis, qualifies for class 4c provided that <br/>
<a id="pl.192.11"></a><var>192.11</var>it meets either of the following: <br/>
<a id="pl.192.12"></a><var>192.12</var>    (i) the property is not used for a revenue-producing activity for more than six days <br/>
<a id="pl.192.13"></a><var>192.13</var>in the calendar year preceding the year of assessment; or <br/>
<a id="pl.192.14"></a><var>192.14</var>    (ii) the organization makes annual charitable contributions and donations at least <br/>
<a id="pl.192.15"></a><var>192.15</var>equal to the property's previous year's property taxes and the property is allowed to be <br/>
<a id="pl.192.16"></a><var>192.16</var>used for public and community meetings or events for no charge, as appropriate to the <br/>
<a id="pl.192.17"></a><var>192.17</var>size of the facility. <br/>
<a id="pl.192.18"></a><var>192.18</var>    For purposes of this clause, <br/>
<a id="pl.192.19"></a><var>192.19</var>    (A) "charitable contributions and donations" has the same meaning as lawful <br/>
<a id="pl.192.20"></a><var>192.20</var>gambling purposes under section 
         <statute_ref>349.12, subdivision 25</statute_ref>, excluding those purposes <br/>
<a id="pl.192.21"></a><var>192.21</var>relating to the payment of taxes, assessments, fees, auditing costs, and utility payments; <br/>
<a id="pl.192.22"></a><var>192.22</var>    (B) "property taxes" excludes the state general tax; <br/>
<a id="pl.192.23"></a><var>192.23</var>    (C) a "nonprofit community service oriented organization" means any corporation, <br/>
<a id="pl.192.24"></a><var>192.24</var>society, association, foundation, or institution organized and operated exclusively for <br/>
<a id="pl.192.25"></a><var>192.25</var>charitable, religious, fraternal, civic, or educational purposes, and which is exempt from <br/>
<a id="pl.192.26"></a><var>192.26</var>federal income taxation pursuant to section 501(c)(3), (10), or (19) of the Internal Revenue <br/>
<a id="pl.192.27"></a><var>192.27</var>Code of 1986, as amended through December 31, 1990; and <br/>
<a id="pl.192.28"></a><var>192.28</var>    (D) "revenue-producing activities" shall include but not be limited to property or that <br/>
<a id="pl.192.29"></a><var>192.29</var>portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt <br/>
<a id="pl.192.30"></a><var>192.30</var>liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling <br/>
<a id="pl.192.31"></a><var>192.31</var>alley, a retail store, gambling conducted by organizations licensed under chapter 349, an <br/>
<a id="pl.192.32"></a><var>192.32</var>insurance business, or office or other space leased or rented to a lessee who conducts a <br/>
<a id="pl.192.33"></a><var>192.33</var>for-profit enterprise on the premises. <br/>
<a id="pl.192.34"></a><var>192.34</var>Any portion of the property qualifying under item (i) which is used for revenue-producing <br/>
<a id="pl.192.35"></a><var>192.35</var>activities for more than six days in the calendar year preceding the year of assessment <br/>
<a id="pl.192.36"></a><var>192.36</var>shall be assessed as class 3a. The use of the property for social events open exclusively <br/>
<a id="pl.193.1"></a><var>193.1</var>to members and their guests for periods of less than 24 hours, when an admission is <br/>
<a id="pl.193.2"></a><var>193.2</var>not charged nor any revenues are received by the organization shall not be considered a <br/>
<a id="pl.193.3"></a><var>193.3</var>revenue-producing activity. <br/>
<a id="pl.193.4"></a><var>193.4</var>    The organization shall maintain records of its charitable contributions and donations <br/>
<a id="pl.193.5"></a><var>193.5</var>and of public meetings and events held on the property and make them available upon <br/>
<a id="pl.193.6"></a><var>193.6</var>request any time to the assessor to ensure eligibility. An organization meeting the <br/>
<a id="pl.193.7"></a><var>193.7</var>requirement under item (ii) must file an application by May 1 with the assessor for <br/>
<a id="pl.193.8"></a><var>193.8</var>eligibility for the current year's assessment. The commissioner shall prescribe a uniform <br/>
<a id="pl.193.9"></a><var>193.9</var>application form and instructions; <br/>
<a id="pl.193.10"></a><var>193.10</var>    (4) postsecondary student housing of not more than one acre of land that is owned by <br/>
<a id="pl.193.11"></a><var>193.11</var>a nonprofit corporation organized under chapter 317A and is used exclusively by a student <br/>
<a id="pl.193.12"></a><var>193.12</var>cooperative, sorority, or fraternity for on-campus housing or housing located within two <br/>
<a id="pl.193.13"></a><var>193.13</var>miles of the border of a college campus; <br/>
<a id="pl.193.14"></a><var>193.14</var>    (5) manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>; <br/>
<a id="pl.193.15"></a><var>193.15</var>    (6) real property that is actively and exclusively devoted to indoor fitness, health, <br/>
<a id="pl.193.16"></a><var>193.16</var>social, recreational, and related uses, is owned and operated by a not-for-profit corporation, <br/>
<a id="pl.193.17"></a><var>193.17</var>and is located within the metropolitan area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>; <br/>
<a id="pl.193.18"></a><var>193.18</var>    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt <br/>
<a id="pl.193.19"></a><var>193.19</var>under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that: <br/>
<a id="pl.193.20"></a><var>193.20</var>    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan <br/>
<a id="pl.193.21"></a><var>193.21</var>Airports Commission, or group thereof; and <br/>
<a id="pl.193.22"></a><var>193.22</var>    (ii) the land lease, or any ordinance or signed agreement restricting the use of the <br/>
<a id="pl.193.23"></a><var>193.23</var>leased premise, prohibits commercial activity performed at the hangar. <br/>
<a id="pl.193.24"></a><var>193.24</var>    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must <br/>
<a id="pl.193.25"></a><var>193.25</var>be filed by the new owner with the assessor of the county where the property is located <br/>
<a id="pl.193.26"></a><var>193.26</var>within 60 days of the sale; <br/>
<a id="pl.193.27"></a><var>193.27</var>    (8) a privately owned noncommercial aircraft storage hangar not exempt under <br/>
<a id="pl.193.28"></a><var>193.28</var>section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that: <br/>
<a id="pl.193.29"></a><var>193.29</var>    (i) the land abuts a public airport; and <br/>
<a id="pl.193.30"></a><var>193.30</var>    (ii) the owner of the aircraft storage hangar provides the assessor with a signed <br/>
<a id="pl.193.31"></a><var>193.31</var>agreement restricting the use of the premises, prohibiting commercial use or activity <br/>
<a id="pl.193.32"></a><var>193.32</var>performed at the hangar; and <br/>
<a id="pl.193.33"></a><var>193.33</var>    (9) residential real estate, a portion of which is used by the owner for homestead <br/>
<a id="pl.193.34"></a><var>193.34</var>purposes, and that is also a place of lodging, if all of the following criteria are met: <br/>
<a id="pl.193.35"></a><var>193.35</var>    (i) rooms are provided for rent to transient guests that generally stay for periods <br/>
<a id="pl.193.36"></a><var>193.36</var>of 14 or fewer days; <br/>
<a id="pl.194.1"></a><var>194.1</var>    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated <br/>
<a id="pl.194.2"></a><var>194.2</var>in the basic room rate; <br/>
<a id="pl.194.3"></a><var>194.3</var>    (iii) meals are not provided to the general public except for special events on fewer <br/>
<a id="pl.194.4"></a><var>194.4</var>than seven days in the calendar year preceding the year of the assessment; and <br/>
<a id="pl.194.5"></a><var>194.5</var>    (iv) the owner is the operator of the property. <br/>
<a id="pl.194.6"></a><var>194.6</var>The market value subject to the 4c classification under this clause is limited to five rental <br/>
<a id="pl.194.7"></a><var>194.7</var>units. Any rental units on the property in excess of five, must be valued and assessed as <br/>
<a id="pl.194.8"></a><var>194.8</var>class 3a. The portion of the property used for purposes of a homestead by the owner must <br/>
<a id="pl.194.9"></a><var>194.9</var>be classified as class 1a property under subdivision 22. <br/>
<a id="pl.194.10"></a><var>194.10</var>    Class 4c property has a class rate of 1.5 percent of market value, except that (i) each <br/>
<a id="pl.194.11"></a><var>194.11</var>parcel of seasonal residential recreational property not used for commercial purposes has <br/>
<a id="pl.194.12"></a><var>194.12</var>the same class rates as class 4bb property, (ii) manufactured home parks assessed under <br/>
<a id="pl.194.13"></a><var>194.13</var>clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal <br/>
<a id="pl.194.14"></a><var>194.14</var>residential recreational property has a class rate of one percent for the first $500,000 of <br/>
<a id="pl.194.15"></a><var>194.15</var>market value, and 1.25 percent for the remaining market value, (iv) the market value of <br/>
<a id="pl.194.16"></a><var>194.16</var>property described in clause (4) has a class rate of one percent, (v) the market value of <br/>
<a id="pl.194.17"></a><var>194.17</var>property described in clauses (2) and (6) has a class rate of 1.25 percent, and (vi) that <br/>
<a id="pl.194.18"></a><var>194.18</var>portion of the market value of property in clause (9) qualifying for class 4c property <br/>
<a id="pl.194.19"></a><var>194.19</var>has a class rate of 1.25 percent. <br/>
<a id="pl.194.20"></a><var>194.20</var>    (e) Class 4d property is qualifying low-income rental housing certified to the assessor <br/>
<a id="pl.194.21"></a><var>194.21</var>by the Housing Finance Agency under section 
         <statute_ref>273.128, subdivision 3</statute_ref>. If only a portion <br/>
<a id="pl.194.22"></a><var>194.22</var>of the units in the building qualify as low-income rental housing units as certified under <br/>
<a id="pl.194.23"></a><var>194.23</var>section 
         <statute_ref>273.128, subdivision 3</statute_ref>, only the proportion of qualifying units to the total number <br/>
<a id="pl.194.24"></a><var>194.24</var>of units in the building qualify for class 4d. The remaining portion of the building shall be <br/>
<a id="pl.194.25"></a><var>194.25</var>classified by the assessor based upon its use. Class 4d also includes the same proportion of <br/>
<a id="pl.194.26"></a><var>194.26</var>land as the qualifying low-income rental housing units are to the total units in the building. <br/>
<a id="pl.194.27"></a><var>194.27</var>For all properties qualifying as class 4d, the market value determined by the assessor must <br/>
<a id="pl.194.28"></a><var>194.28</var>be based on the normal approach to value using normal unrestricted rents. <br/>
<a id="pl.194.29"></a><var>194.29</var>    Class 4d property has a class rate of 0.75 percent. <br/>
<a id="pl.194.30"></a><var>194.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.14.0"></a><a id="pl.194.31"></a><var>194.31</var>    Sec. 14. Minnesota Statutes 2006, section 287.20, subdivision 3a, is amended to read:<br/>
<a id="pl.194.32"></a><var>194.32</var>    Subd. 3a. <b>Designated transfer.</b> "Designated transfer" means any of the following:<br/>
<a id="pl.194.33"></a><var>194.33</var>    (1) a transfer between (i) an entity owned by a sole owner, and (ii) that sole owner;<br/>
<a id="pl.194.34"></a><var>194.34</var>    (2) a transfer between (i) an entity in which a husband, a wife, or both are the sole <br/>
<a id="pl.194.35"></a><var>194.35</var>owners, and (ii) the husband, wife, or both;<br/>
<a id="pl.195.1"></a><var>195.1</var>    (3) a transfer between (i) an entity with multiple co-owners, and (ii) all of the <br/>
<a id="pl.195.2"></a><var>195.2</var>co-owners, so long as each of the co-owners maintains the same percentage ownership <br/>
<a id="pl.195.3"></a><var>195.3</var>interest in the transferred real property, whether directly or through ownership of a <br/>
<a id="pl.195.4"></a><var>195.4</var>percentage of the entity;<br/>
<a id="pl.195.5"></a><var>195.5</var>    (4) a transfer between (i) a revocable trust, and (ii) the grantor or grantors of the <br/>
<a id="pl.195.6"></a><var>195.6</var>revocable trust; or<br/>
<a id="pl.195.7"></a><var>195.7</var>    (5) a transfer of substantially all of the assets of one or more entities pursuant to a <br/>
<a id="pl.195.8"></a><var>195.8</var>reorganization, as defined in section 
         <statute_ref>287.20, subdivision 9</statute_ref>.<br/>
<a id="pl.195.9"></a><var>195.9</var>For purposes of this definition of designated transfer, an interest in an entity that is <br/>
<a id="pl.195.10"></a><var>195.10</var>owned, directly or indirectly, by or for another entity shall be considered as being owned <br/>
<a id="pl.195.11"></a><var>195.11</var>proportionately by or for the owners of the other entity under provisions similar to those <br/>
<a id="pl.195.12"></a><var>195.12</var>of section 267(c)(1) and (5) of the Internal Revenue Code of 1986, as amended through <br/>
<a id="pl.195.13"></a><var>195.13</var>December 31, 2004.<br/>
<a id="pl.195.14"></a><var>195.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.15.0"></a><a id="pl.195.15"></a><var>195.15</var>    Sec. 15. Minnesota Statutes 2006, section 287.20, subdivision 9, is amended to read:<br/>
<a id="pl.195.16"></a><var>195.16</var>    Subd. 9. <b>Reorganization.</b> "Reorganization" means the transfer of substantially all <br/>
<a id="pl.195.17"></a><var>195.17</var>of the assets of a corporation, a limited liability company, or a partnership not in the usual <br/>
<a id="pl.195.18"></a><var>195.18</var>or regular course of business if at the time of the transfer the transfer qualifies as: (i) a <br/>
<a id="pl.195.19"></a><var>195.19</var>corporate reorganization under section 368(a) of the Internal Revenue Code of 1986, as <br/>
<a id="pl.195.20"></a><var>195.20</var>amended through December 31, 2004; or (ii) a transfer from a partnership to another <br/>
<a id="pl.195.21"></a><var>195.21</var>partnership when the transferee is treated as a continuation of the transferor under section <br/>
<a id="pl.195.22"></a><var>195.22</var>708 of the Internal Revenue Code of 1986, as amended through December 31, 2004.<br/>
<br/>
<a id="bill.11.16.0"></a><a id="pl.195.23"></a><var>195.23</var>    Sec. 16. Minnesota Statutes 2006, section 287.20, is amended by adding a subdivision <br/>
<a id="pl.195.24"></a><var>195.24</var>to read:<br/>
<a id="pl.195.25"></a><var>195.25</var>    Subd. 10. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br/>
<a id="pl.195.26"></a><var>195.26</var>Revenue Code" means the Internal Revenue Code as defined in section 289A.02, <br/>
<a id="pl.195.27"></a><var>195.27</var>subdivision 7.<br/>
<a id="pl.195.28"></a><var>195.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.17.0"></a><a id="pl.195.29"></a><var>195.29</var>    Sec. 17. Minnesota Statutes 2006, section 295.53, subdivision 4a, is amended to read:<br/>
<a id="pl.195.30"></a><var>195.30</var>    Subd. 4a. <b>Credit for research.</b> (a) In addition to the exemptions allowed under <br/>
<a id="pl.195.31"></a><var>195.31</var>subdivision 1, a hospital or health care provider may claim an annual credit against the <br/>
<a id="pl.195.32"></a><var>195.32</var>total amount of tax, if any, the hospital or health care provider owes for that calendar year <br/>
<a id="pl.195.33"></a><var>195.33</var>under sections 
         <statute_ref>295.50</statute_ref> to 
         <statute_ref>295.57</statute_ref>. The credit shall equal 2.5 percent of revenues for patient <br/>
<a id="pl.196.1"></a><var>196.1</var>services used to fund expenditures for qualifying research conducted by an allowable <br/>
<a id="pl.196.2"></a><var>196.2</var>research program. The amount of the credit shall not exceed the tax liability of the hospital <br/>
<a id="pl.196.3"></a><var>196.3</var>or health care provider under sections 
         <statute_ref>295.50</statute_ref> to 
         <statute_ref>295.57</statute_ref>. <br/>
<a id="pl.196.4"></a><var>196.4</var>    (b) For purposes of this subdivision, the following requirements apply:<br/>
<a id="pl.196.5"></a><var>196.5</var>    (1) expenditures must be for program costs of qualifying research conducted by <br/>
<a id="pl.196.6"></a><var>196.6</var>an allowable research program;<br/>
<a id="pl.196.7"></a><var>196.7</var>    (2) an allowable research program must be a formal program of medical and health <br/>
<a id="pl.196.8"></a><var>196.8</var>care research conducted by an entity which is exempt under section 501(c)(3) of the <br/>
<a id="pl.196.9"></a><var>196.9</var>Internal Revenue Code of 1986 as defined in section 289A.02, subdivision 7, or is owned <br/>
<a id="pl.196.10"></a><var>196.10</var>and operated under authority of a governmental unit;<br/>
<a id="pl.196.11"></a><var>196.11</var>    (3) qualifying research must:<br/>
<a id="pl.196.12"></a><var>196.12</var>    (A) be approved in writing by the governing body of the hospital or health care <br/>
<a id="pl.196.13"></a><var>196.13</var>provider which is taking the deduction under this subdivision;<br/>
<a id="pl.196.14"></a><var>196.14</var>    (B) have as its purpose the development of new knowledge in basic or applied <br/>
<a id="pl.196.15"></a><var>196.15</var>science relating to the diagnosis and treatment of conditions affecting the human body;<br/>
<a id="pl.196.16"></a><var>196.16</var>    (C) be subject to review by individuals with expertise in the subject matter of the <br/>
<a id="pl.196.17"></a><var>196.17</var>proposed study but who have no financial interest in the proposed study and are not <br/>
<a id="pl.196.18"></a><var>196.18</var>involved in the conduct of the proposed study; and<br/>
<a id="pl.196.19"></a><var>196.19</var>    (D) be subject to review and supervision by an institutional review board operating <br/>
<a id="pl.196.20"></a><var>196.20</var>in conformity with federal regulations if the research involves human subjects or <br/>
<a id="pl.196.21"></a><var>196.21</var>an institutional animal care and use committee operating in conformity with federal <br/>
<a id="pl.196.22"></a><var>196.22</var>regulations if the research involves animal subjects. Research expenses are not exempt if <br/>
<a id="pl.196.23"></a><var>196.23</var>the study is a routine evaluation of health care methods or products used in a particular <br/>
<a id="pl.196.24"></a><var>196.24</var>setting conducted for the purpose of making a management decision. Costs of clinical <br/>
<a id="pl.196.25"></a><var>196.25</var>research activities paid directly for the benefit of an individual patient are excluded from <br/>
<a id="pl.196.26"></a><var>196.26</var>this exemption. Basic research in fields including biochemistry, molecular biology, and <br/>
<a id="pl.196.27"></a><var>196.27</var>physiology are also included if such programs are subject to a peer review process.<br/>
<a id="pl.196.28"></a><var>196.28</var>    (c) No credit shall be allowed under this subdivision for any revenue received by the <br/>
<a id="pl.196.29"></a><var>196.29</var>hospital or health care provider in the form of a grant, gift, or otherwise, whether from a <br/>
<a id="pl.196.30"></a><var>196.30</var>government or nongovernment source, on which the tax liability under section 
         <statute_ref>295.52</statute_ref> is <br/>
<a id="pl.196.31"></a><var>196.31</var>not imposed. <br/>
<a id="pl.196.32"></a><var>196.32</var>    (d) The taxpayer shall apply for the credit under this section on the annual return <br/>
<a id="pl.196.33"></a><var>196.33</var>under section 
         <statute_ref>295.55, subdivision 5</statute_ref>. <br/>
<a id="pl.196.34"></a><var>196.34</var>    (e) Beginning September 1, 2001, if the actual or estimated amount paid under <br/>
<a id="pl.196.35"></a><var>196.35</var>this section for the calendar year exceeds $2,500,000, the commissioner of finance shall <br/>
<a id="pl.196.36"></a><var>196.36</var>determine the rate of the research credit for the following calendar year to the nearest <br/>
<a id="pl.197.1"></a><var>197.1</var>one-half percent so that refunds paid under this section will most closely equal $2,500,000. <br/>
<a id="pl.197.2"></a><var>197.2</var>The commissioner of finance shall publish in the State Register by October 1 of each year <br/>
<a id="pl.197.3"></a><var>197.3</var>the rate of the credit for the following calendar year. A determination under this section <br/>
<a id="pl.197.4"></a><var>197.4</var>is not subject to the rulemaking provisions of chapter 14.<br/>
<a id="pl.197.5"></a><var>197.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.18.0"></a><a id="pl.197.6"></a><var>197.6</var>    Sec. 18. Minnesota Statutes 2006, section 296A.16, subdivision 2, is amended to read:<br/>
<a id="pl.197.7"></a><var>197.7</var>    Subd. 2. <b>Fuel used in other vehicle; claim for refund.</b> Any person who buys and <br/>
<a id="pl.197.8"></a><var>197.8</var>uses gasoline for a qualifying purpose other than use in motor vehicles, snowmobiles <br/>
<a id="pl.197.9"></a><var>197.9</var>except as provided in clause (2), or motorboats, or special fuel for a qualifying purpose <br/>
<a id="pl.197.10"></a><var>197.10</var>other than use in licensed motor vehicles, and who paid the tax directly or indirectly <br/>
<a id="pl.197.11"></a><var>197.11</var>through the amount of the tax being included in the price of the gasoline or special fuel, or <br/>
<a id="pl.197.12"></a><var>197.12</var>otherwise, shall be reimbursed and repaid the amount of the tax paid upon filing with the <br/>
<a id="pl.197.13"></a><var>197.13</var>commissioner a claim for refund in the form and manner prescribed by the commissioner, <br/>
<a id="pl.197.14"></a><var>197.14</var>and containing the information the commissioner shall require. By signing any such claim <br/>
<a id="pl.197.15"></a><var>197.15</var>which is false or fraudulent, the applicant shall be subject to the penalties provided in this <br/>
<a id="pl.197.16"></a><var>197.16</var>chapter for knowingly making a false claim. The claim shall set forth the total amount <br/>
<a id="pl.197.17"></a><var>197.17</var>of the gasoline so purchased and used by the applicant other than in motor vehicles, or <br/>
<a id="pl.197.18"></a><var>197.18</var>special fuel purchased and used by the applicant other than in licensed motor vehicles, <br/>
<a id="pl.197.19"></a><var>197.19</var>and shall state when and for what purpose it was used. When a claim contains an error <br/>
<a id="pl.197.20"></a><var>197.20</var>in computation or preparation, the commissioner is authorized to adjust the claim in <br/>
<a id="pl.197.21"></a><var>197.21</var>accordance with the evidence shown on the claim or other information available to the <br/>
<a id="pl.197.22"></a><var>197.22</var>commissioner. The commissioner, on being satisfied that the claimant is entitled to the <br/>
<a id="pl.197.23"></a><var>197.23</var>payments, shall approve the claim and transmit it to the commissioner of finance. The <br/>
<a id="pl.197.24"></a><var>197.24</var>words "gasoline" or "special fuel" as used in this subdivision do not include aviation <br/>
<a id="pl.197.25"></a><var>197.25</var>gasoline or special fuel for aircraft. Gasoline or special fuel bought and used for a <br/>
<a id="pl.197.26"></a><var>197.26</var>"qualifying purpose" means:<br/>
<a id="pl.197.27"></a><var>197.27</var>    (1) Gasoline or special fuel used in carrying on a trade or business, used on a farm <br/>
<a id="pl.197.28"></a><var>197.28</var>situated in Minnesota, and used for a farming purpose. "Farm" and "farming purpose" <br/>
<a id="pl.197.29"></a><var>197.29</var>have the meanings given them in section 6420(c)(2), (3), and (4) of the Internal Revenue <br/>
<a id="pl.197.30"></a><var>197.30</var>Code of 1986, as amended through December 31, 1997 as defined in section 289A.02, <br/>
<a id="pl.197.31"></a><var>197.31</var>subdivision 7.<br/>
<a id="pl.197.32"></a><var>197.32</var>    (2) Gasoline or special fuel used for off-highway business use.<br/>
<a id="pl.197.33"></a><var>197.33</var>    (i) "Off-highway business use" means any use off the public highway by a person in <br/>
<a id="pl.197.34"></a><var>197.34</var>that person's trade, business, or activity for the production of income.<br/>
<a id="pl.198.1"></a><var>198.1</var>    (ii) Off-highway business use includes use of a passenger snowmobile off the public <br/>
<a id="pl.198.2"></a><var>198.2</var>highways as part of the operations of a resort as defined in section 
         <statute_ref>157.15, subdivision 11</statute_ref>; <br/>
<a id="pl.198.3"></a><var>198.3</var>and use of gasoline or special fuel to operate a power takeoff unit on a vehicle, but not <br/>
<a id="pl.198.4"></a><var>198.4</var>including fuel consumed during idling time. <br/>
<a id="pl.198.5"></a><var>198.5</var>    (iii) Off-highway business use does not include use as a fuel in a motor vehicle <br/>
<a id="pl.198.6"></a><var>198.6</var>which, at the time of use, is registered or is required to be registered for highway use under <br/>
<a id="pl.198.7"></a><var>198.7</var>the laws of any state or foreign country; or use of a licensed motor vehicle fuel tank in lieu <br/>
<a id="pl.198.8"></a><var>198.8</var>of a separate storage tank for storing fuel to be used for a qualifying purpose, as defined in <br/>
<a id="pl.198.9"></a><var>198.9</var>this section. Fuel purchased to be used for a qualifying purpose cannot be placed in the <br/>
<a id="pl.198.10"></a><var>198.10</var>fuel tank of a licensed motor vehicle and must be stored in a separate supply tank.<br/>
<a id="pl.198.11"></a><var>198.11</var>    (3) Gasoline or special fuel placed in the fuel tanks of new motor vehicles, <br/>
<a id="pl.198.12"></a><var>198.12</var>manufactured in Minnesota, and shipped by interstate carrier to destinations in other <br/>
<a id="pl.198.13"></a><var>198.13</var>states or foreign countries.<br/>
<a id="pl.198.14"></a><var>198.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.19.0"></a><a id="pl.198.15"></a><var>198.15</var>    Sec. 19. Minnesota Statutes 2006, section 297A.61, subdivision 22, is amended to read:<br/>
<a id="pl.198.16"></a><var>198.16</var>    Subd. 22. <b>Internal Revenue Code.</b> Unless specifically provided otherwise, <br/>
<a id="pl.198.17"></a><var>198.17</var>"Internal Revenue Code" means the Internal Revenue Code of 1986, as amended through <br/>
<a id="pl.198.18"></a><var>198.18</var>December 31, 2000 as defined in section 289A.02, subdivision 7.<br/>
<a id="pl.198.19"></a><var>198.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.20.0"></a><a id="pl.198.20"></a><var>198.20</var>    Sec. 20. Minnesota Statutes 2006, section 297B.01, subdivision 7, is amended to read:<br/>
<a id="pl.198.21"></a><var>198.21</var>    Subd. 7. <b>Sale, sells, selling, purchase, purchased, or acquired.</b> (a) "Sale," "sells," <br/>
<a id="pl.198.22"></a><var>198.22</var>"selling," "purchase," "purchased," or "acquired" means any transfer of title of any motor <br/>
<a id="pl.198.23"></a><var>198.23</var>vehicle, whether absolutely or conditionally, for a consideration in money or by exchange <br/>
<a id="pl.198.24"></a><var>198.24</var>or barter for any purpose other than resale in the regular course of business.<br/>
<a id="pl.198.25"></a><var>198.25</var>    (b) Any motor vehicle utilized by the owner only by leasing such vehicle to others <br/>
<a id="pl.198.26"></a><var>198.26</var>or by holding it in an effort to so lease it, and which is put to no other use by the owner <br/>
<a id="pl.198.27"></a><var>198.27</var>other than resale after such lease or effort to lease, shall be considered property purchased <br/>
<a id="pl.198.28"></a><var>198.28</var>for resale.<br/>
<a id="pl.198.29"></a><var>198.29</var>    (c) The terms also shall include any transfer of title or ownership of a motor vehicle <br/>
<a id="pl.198.30"></a><var>198.30</var>by other means, for or without consideration, except that these terms shall not include:<br/>
<a id="pl.198.31"></a><var>198.31</var>    (1) the acquisition of a motor vehicle by inheritance from or by bequest of, a <br/>
<a id="pl.198.32"></a><var>198.32</var>decedent who owned it;<br/>
<a id="pl.199.1"></a><var>199.1</var>    (2) the transfer of a motor vehicle which was previously licensed in the names of <br/>
<a id="pl.199.2"></a><var>199.2</var>two or more joint tenants and subsequently transferred without monetary consideration to <br/>
<a id="pl.199.3"></a><var>199.3</var>one or more of the joint tenants;<br/>
<a id="pl.199.4"></a><var>199.4</var>    (3) the transfer of a motor vehicle by way of gift between individuals, or gift <br/>
<a id="pl.199.5"></a><var>199.5</var>from a limited used vehicle dealer licensed under section 
         <statute_ref>168.27, subdivision 4a</statute_ref>, to an <br/>
<a id="pl.199.6"></a><var>199.6</var>individual, when the transfer is with no monetary or other consideration or expectation <br/>
<a id="pl.199.7"></a><var>199.7</var>of consideration and the parties to the transfer submit an affidavit to that effect at the <br/>
<a id="pl.199.8"></a><var>199.8</var>time the title transfer is recorded; <br/>
<a id="pl.199.9"></a><var>199.9</var>    (4) the voluntary or involuntary transfer of a motor vehicle between a husband and <br/>
<a id="pl.199.10"></a><var>199.10</var>wife in a divorce proceeding; or<br/>
<a id="pl.199.11"></a><var>199.11</var>    (5) the transfer of a motor vehicle by way of a gift to an organization that is exempt <br/>
<a id="pl.199.12"></a><var>199.12</var>from federal income taxation under section 501(c)(3) of the Internal Revenue Code, as <br/>
<a id="pl.199.13"></a><var>199.13</var>amended through December 31, 1996, when the motor vehicle will be used exclusively for <br/>
<a id="pl.199.14"></a><var>199.14</var>religious, charitable, or educational purposes.<br/>
<a id="pl.199.15"></a><var>199.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.21.0"></a><a id="pl.199.16"></a><var>199.16</var>    Sec. 21. Minnesota Statutes 2006, section 297B.01, is amended by adding a <br/>
<a id="pl.199.17"></a><var>199.17</var>subdivision to read:<br/>
<a id="pl.199.18"></a><var>199.18</var>    Subd. 10. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br/>
<a id="pl.199.19"></a><var>199.19</var>Revenue Code" means the Internal Revenue Code as defined in section 289A.02, <br/>
<a id="pl.199.20"></a><var>199.20</var>subdivision 7.<br/>
<a id="pl.199.21"></a><var>199.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.22.0"></a><a id="pl.199.22"></a><var>199.22</var>    Sec. 22. Minnesota Statutes 2006, section 297B.03, is amended to read:<br/>
<a id="pl.199.23"></a><var>199.23</var><b>297B.03 EXEMPTIONS.</b><br/>
<a id="pl.199.24"></a><var>199.24</var>    There is specifically exempted from the provisions of this chapter and from <br/>
<a id="pl.199.25"></a><var>199.25</var>computation of the amount of tax imposed by it the following:<br/>
<a id="pl.199.26"></a><var>199.26</var>    (1) purchase or use, including use under a lease purchase agreement or installment <br/>
<a id="pl.199.27"></a><var>199.27</var>sales contract made pursuant to section 
         <statute_ref>465.71</statute_ref>, of any motor vehicle by the United States <br/>
<a id="pl.199.28"></a><var>199.28</var>and its agencies and instrumentalities and by any person described in and subject to the <br/>
<a id="pl.199.29"></a><var>199.29</var>conditions provided in section 
         <statute_ref>297A.67, subdivision 11</statute_ref>; <br/>
<a id="pl.199.30"></a><var>199.30</var>    (2) purchase or use of any motor vehicle by any person who was a resident of <br/>
<a id="pl.199.31"></a><var>199.31</var>another state or country at the time of the purchase and who subsequently becomes a <br/>
<a id="pl.199.32"></a><var>199.32</var>resident of Minnesota, provided the purchase occurred more than 60 days prior to the date <br/>
<a id="pl.199.33"></a><var>199.33</var>such person began residing in the state of Minnesota and the motor vehicle was registered <br/>
<a id="pl.199.34"></a><var>199.34</var>in the person's name in the other state or country;<br/>
<a id="pl.200.1"></a><var>200.1</var>    (3) purchase or use of any motor vehicle by any person making a valid election to be <br/>
<a id="pl.200.2"></a><var>200.2</var>taxed under the provisions of section 
         <statute_ref>297A.90</statute_ref>; <br/>
<a id="pl.200.3"></a><var>200.3</var>    (4) purchase or use of any motor vehicle previously registered in the state of <br/>
<a id="pl.200.4"></a><var>200.4</var>Minnesota when such transfer constitutes a transfer within the meaning of section 118, <br/>
<a id="pl.200.5"></a><var>200.5</var>331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal <br/>
<a id="pl.200.6"></a><var>200.6</var>Revenue Code of 1986, as amended through December 31, 1999;<br/>
<a id="pl.200.7"></a><var>200.7</var>    (5) purchase or use of any vehicle owned by a resident of another state and leased <br/>
<a id="pl.200.8"></a><var>200.8</var>to a Minnesota-based private or for-hire carrier for regular use in the transportation of <br/>
<a id="pl.200.9"></a><var>200.9</var>persons or property in interstate commerce provided the vehicle is titled in the state of <br/>
<a id="pl.200.10"></a><var>200.10</var>the owner or secured party, and that state does not impose a sales tax or sales tax on <br/>
<a id="pl.200.11"></a><var>200.11</var>motor vehicles used in interstate commerce;<br/>
<a id="pl.200.12"></a><var>200.12</var>    (6) purchase or use of a motor vehicle by a private nonprofit or public educational <br/>
<a id="pl.200.13"></a><var>200.13</var>institution for use as an instructional aid in automotive training programs operated by the <br/>
<a id="pl.200.14"></a><var>200.14</var>institution. "Automotive training programs" includes motor vehicle body and mechanical <br/>
<a id="pl.200.15"></a><var>200.15</var>repair courses but does not include driver education programs;<br/>
<a id="pl.200.16"></a><var>200.16</var>    (7) purchase of a motor vehicle for use as an ambulance by an ambulance service <br/>
<a id="pl.200.17"></a><var>200.17</var>licensed under section 
         <statute_ref>144E.10</statute_ref>; <br/>
<a id="pl.200.18"></a><var>200.18</var>    (8) purchase of a motor vehicle by or for a public library, as defined in section <br/>
<statute_ref><a id="pl.200.19"></a><var>200.19</var>134.001, subdivision 2
         </statute_ref>, as a bookmobile or library delivery vehicle; <br/>
<a id="pl.200.20"></a><var>200.20</var>    (9) purchase of a ready-mixed concrete truck;<br/>
<a id="pl.200.21"></a><var>200.21</var>    (10) purchase or use of a motor vehicle by a town for use exclusively for road <br/>
<a id="pl.200.22"></a><var>200.22</var>maintenance, including snowplows and dump trucks, but not including automobiles, <br/>
<a id="pl.200.23"></a><var>200.23</var>vans, or pickup trucks;<br/>
<a id="pl.200.24"></a><var>200.24</var>    (11) purchase or use of a motor vehicle by a corporation, society, association, <br/>
<a id="pl.200.25"></a><var>200.25</var>foundation, or institution organized and operated exclusively for charitable, religious, <br/>
<a id="pl.200.26"></a><var>200.26</var>or educational purposes, except a public school, university, or library, but only if the <br/>
<a id="pl.200.27"></a><var>200.27</var>vehicle is:<br/>
<a id="pl.200.28"></a><var>200.28</var>    (i) a truck, as defined in section 
         <statute_ref>168.011</statute_ref>, a bus, as defined in section 
         <statute_ref>168.011</statute_ref>, or a <br/>
<a id="pl.200.29"></a><var>200.29</var>passenger automobile, as defined in section 
         <statute_ref>168.011</statute_ref>, if the automobile is designed and <br/>
<a id="pl.200.30"></a><var>200.30</var>used for carrying more than nine persons including the driver; and <br/>
<a id="pl.200.31"></a><var>200.31</var>    (ii) intended to be used primarily to transport tangible personal property or <br/>
<a id="pl.200.32"></a><var>200.32</var>individuals, other than employees, to whom the organization provides service in <br/>
<a id="pl.200.33"></a><var>200.33</var>performing its charitable, religious, or educational purpose;<br/>
<a id="pl.200.34"></a><var>200.34</var>    (12) purchase of a motor vehicle for use by a transit provider exclusively to provide <br/>
<a id="pl.200.35"></a><var>200.35</var>transit service is exempt if the transit provider is either (i) receiving financial assistance or <br/>
<a id="pl.201.1"></a><var>201.1</var>reimbursement under section 
         <statute_ref>174.24</statute_ref> or 
         <statute_ref>473.384</statute_ref>, or (ii) operating under section 
         <statute_ref>174.29</statute_ref>, <br/>
<statute_ref><a id="pl.201.2"></a><var>201.2</var>473.388
         </statute_ref>, or 
         <statute_ref>473.405</statute_ref>; <br/>
<a id="pl.201.3"></a><var>201.3</var>    (13) purchase or use of a motor vehicle by a qualified business, as defined in section <br/>
<statute_ref><a id="pl.201.4"></a><var>201.4</var>469.310
         </statute_ref>, located in a job opportunity building zone, if the motor vehicle is principally <br/>
<a id="pl.201.5"></a><var>201.5</var>garaged in the job opportunity building zone and is primarily used as part of or in direct <br/>
<a id="pl.201.6"></a><var>201.6</var>support of the person's operations carried on in the job opportunity building zone. The <br/>
<a id="pl.201.7"></a><var>201.7</var>exemption under this clause applies to sales, if the purchase was made and delivery <br/>
<a id="pl.201.8"></a><var>201.8</var>received during the duration of the job opportunity building zone. The exemption under <br/>
<a id="pl.201.9"></a><var>201.9</var>this clause also applies to any local sales and use tax. <br/>
<a id="pl.201.10"></a><var>201.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.23.0"></a><a id="pl.201.11"></a><var>201.11</var>    Sec. 23. Minnesota Statutes 2006, section 297F.01, subdivision 8, is amended to read:<br/>
<a id="pl.201.12"></a><var>201.12</var>    Subd. 8. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br/>
<a id="pl.201.13"></a><var>201.13</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through December <br/>
<a id="pl.201.14"></a><var>201.14</var>31, 1996 as defined in section 289A.02, subdivision 7.<br/>
<a id="pl.201.15"></a><var>201.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.24.0"></a><a id="pl.201.16"></a><var>201.16</var>    Sec. 24. Minnesota Statutes 2006, section 297G.01, subdivision 9, is amended to read:<br/>
<a id="pl.201.17"></a><var>201.17</var>    Subd. 9. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br/>
<a id="pl.201.18"></a><var>201.18</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through December <br/>
<a id="pl.201.19"></a><var>201.19</var>31, 1996 as defined in section 289A.02, subdivision 7.<br/>
<a id="pl.201.20"></a><var>201.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.25.0"></a><a id="pl.201.21"></a><var>201.21</var>    Sec. 25. Minnesota Statutes 2006, section 297H.09, is amended to read:<br/>
<a id="pl.201.22"></a><var>201.22</var><b>297H.09 BAD DEBTS.</b><br/>
<a id="pl.201.23"></a><var>201.23</var>    The remitter of the solid waste management tax may offset against the tax payable, <br/>
<a id="pl.201.24"></a><var>201.24</var>with respect to any reporting period, the amount of tax imposed by this chapter previously <br/>
<a id="pl.201.25"></a><var>201.25</var>remitted to the commissioner of revenue which qualified as a bad debt under section <br/>
<a id="pl.201.26"></a><var>201.26</var>166(a) of the Internal Revenue Code, as amended through December 31, 1993 defined <br/>
<a id="pl.201.27"></a><var>201.27</var>in section 289A.02, subdivision 7, during such reporting period, but only in proportion <br/>
<a id="pl.201.28"></a><var>201.28</var>to the portion of such debt which became uncollectable. This section applies only to <br/>
<a id="pl.201.29"></a><var>201.29</var>accrual basis remitters that remit tax before it is collected and to the extent they are <br/>
<a id="pl.201.30"></a><var>201.30</var>unable to collect the tax.<br/>
<a id="pl.201.31"></a><var>201.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.0.0"></a>

<a id="bill.12.1.0"></a><a id="pl.202.3"></a><var>202.3</var>    Section 1. Minnesota Statutes 2006, section 289A.18, subdivision 1, as amended by <br/>
<a id="pl.202.4"></a><var>202.4</var>Laws 2008, chapter 154, article 11, section 5, is amended to read:<br/>
<a id="pl.202.5"></a><var>202.5</var>    Subdivision 1.  <b>Individual income, fiduciary income, corporate franchise, and </b><br/>
<a id="pl.202.6"></a><var>202.6</var><b>entertainment taxes; partnership and S corporation returns; information returns; </b><br/>
<a id="pl.202.7"></a><var>202.7</var><b>mining company returns.</b> The returns required to be made under sections 
         <statute_ref>289A.08</statute_ref> and <br/>
<statute_ref><a id="pl.202.8"></a><var>202.8</var>289A.12
         </statute_ref> must be filed at the following times: <br/>
<a id="pl.202.9"></a><var>202.9</var>    (1) returns made on the basis of the calendar year must be filed on April 15 following <br/>
<a id="pl.202.10"></a><var>202.10</var>the close of the calendar year, except that returns of corporations must be filed on March <br/>
<a id="pl.202.11"></a><var>202.11</var>15 following the close of the calendar year; <br/>
<a id="pl.202.12"></a><var>202.12</var>    (2) returns made on the basis of the fiscal year must be filed on the 15th day of the <br/>
<a id="pl.202.13"></a><var>202.13</var>fourth month following the close of the fiscal year, except that returns of corporations <br/>
<a id="pl.202.14"></a><var>202.14</var>must be filed on the 15th day of the third month following the close of the fiscal year; <br/>
<a id="pl.202.15"></a><var>202.15</var>    (3) returns for a fractional part of a year must be filed on the 15th day of the fourth <br/>
<a id="pl.202.16"></a><var>202.16</var>month following the end of the month in which falls the last day of the period for which <br/>
<a id="pl.202.17"></a><var>202.17</var>the return is made, except that the returns of corporations must be filed on the 15th day of <br/>
<a id="pl.202.18"></a><var>202.18</var>the third month following the end of the tax year; or, in the case of a corporation which is <br/>
<a id="pl.202.19"></a><var>202.19</var>a member of a unitary group, the return of the corporation must be filed on the 15th day of <br/>
<a id="pl.202.20"></a><var>202.20</var>the third month following the end of the tax year of the unitary group in which falls the <br/>
<a id="pl.202.21"></a><var>202.21</var>last day of the period for which the return is made; <br/>
<a id="pl.202.22"></a><var>202.22</var>    (4) in the case of a final return of a decedent for a fractional part of a year, the return <br/>
<a id="pl.202.23"></a><var>202.23</var>must be filed on the 15th day of the fourth month following the close of the 12-month <br/>
<a id="pl.202.24"></a><var>202.24</var>period that began with the first day of that fractional part of a year; <br/>
<a id="pl.202.25"></a><var>202.25</var>    (5) in the case of the return of a cooperative association, returns must be filed on or <br/>
<a id="pl.202.26"></a><var>202.26</var>before the 15th day of the ninth month following the close of the taxable year; <br/>
<a id="pl.202.27"></a><var>202.27</var>    (6) if a corporation has been divested from a unitary group and files a return for <br/>
<a id="pl.202.28"></a><var>202.28</var>a fractional part of a year in which it was a member of a unitary business that files a <br/>
<a id="pl.202.29"></a><var>202.29</var>combined report under section 
         <statute_ref>290.34 290.17, subdivision 2 4</statute_ref>, the divested corporation's <br/>
<a id="pl.202.30"></a><var>202.30</var>return must be filed on the 15th day of the third month following the close of the common <br/>
<a id="pl.202.31"></a><var>202.31</var>accounting period that includes the fractional year; <br/>
<a id="pl.202.32"></a><var>202.32</var>    (7) returns of entertainment entities must be filed on April 15 following the close of <br/>
<a id="pl.202.33"></a><var>202.33</var>the calendar year; <br/>
<a id="pl.202.34"></a><var>202.34</var>    (8) returns required to be filed under section 
         <statute_ref>289A.08, subdivision 4</statute_ref>, must be filed <br/>
<a id="pl.202.35"></a><var>202.35</var>on the 15th day of the fifth month following the close of the taxable year; <br/>
<a id="pl.203.1"></a><var>203.1</var>    (9) returns of mining companies must be filed on May 1 following the close of the <br/>
<a id="pl.203.2"></a><var>203.2</var>calendar year; and <br/>
<a id="pl.203.3"></a><var>203.3</var>    (10) returns required to be filed with the commissioner under section 
         <statute_ref>289A.12, <br/>
<a id="pl.203.4"></a><var>203.4</var>subdivision 2 
         </statute_ref>or 4 to 10, must be filed within 30 days after being demanded by the <br/>
<a id="pl.203.5"></a><var>203.5</var>commissioner. <br/>
<a id="pl.203.6"></a><var>203.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.203.7"></a><var>203.7</var>except that the change in clause (6) is effective for taxable years beginning after December <br/>
<a id="pl.203.8"></a><var>203.8</var>31, 2007.<br/>
<br/>
<a id="bill.12.2.0"></a><a id="pl.203.9"></a><var>203.9</var>    Sec. 2. Minnesota Statutes 2006, section 290.01, subdivision 6b, is amended to read:<br/>
<a id="pl.203.10"></a><var>203.10</var>    Subd. 6b. <b>Foreign operating corporation.</b> The term "foreign operating <br/>
<a id="pl.203.11"></a><var>203.11</var>corporation," when applied to a corporation, means a domestic corporation with the <br/>
<a id="pl.203.12"></a><var>203.12</var>following characteristics:<br/>
<a id="pl.203.13"></a><var>203.13</var>    (1) it is part of a unitary business at least one member of which is taxable in this state;<br/>
<a id="pl.203.14"></a><var>203.14</var>    (2) it is not a foreign sales corporation under section 922 of the Internal Revenue <br/>
<a id="pl.203.15"></a><var>203.15</var>Code, as amended through December 31, 1999, for the taxable year;<br/>
<a id="pl.203.16"></a><var>203.16</var>    (3)(i) the average of the percentages of its property and payrolls, including the pro <br/>
<a id="pl.203.17"></a><var>203.17</var>rata share of its unitary partnerships' property and payrolls, assigned to locations outside <br/>
<a id="pl.203.18"></a><var>203.18</var>the United States, where the United States includes the District of Columbia and excludes <br/>
<a id="pl.203.19"></a><var>203.19</var>the commonwealth of Puerto Rico and possessions of the United States, as determined <br/>
<a id="pl.203.20"></a><var>203.20</var>under section 
         <statute_ref>290.191</statute_ref> or 
         <statute_ref>290.20</statute_ref>, is 80 percent or more; or (ii) it has in effect a valid <br/>
<a id="pl.203.21"></a><var>203.21</var>election under section 936 of the Internal Revenue Code; and<br/>
<a id="pl.203.22"></a><var>203.22</var>    (4) it has a minimum of $1,000,000 of payroll and $2,000,000 of property, as <br/>
<a id="pl.203.23"></a><var>203.23</var>determined under section 
         <statute_ref>290.191</statute_ref> or 
         <statute_ref>290.20</statute_ref>, that are located outside the United States. If <br/>
<a id="pl.203.24"></a><var>203.24</var>the domestic corporation does not have payroll as determined under section 
         <statute_ref>290.191</statute_ref> or <br/>
<statute_ref><a id="pl.203.25"></a><var>203.25</var>290.20
         </statute_ref>, but it or its partnerships have paid $1,000,000 for work, performed directly for the <br/>
<a id="pl.203.26"></a><var>203.26</var>domestic corporation or the partnerships, outside the United States, then paragraph (3)(i) <br/>
<a id="pl.203.27"></a><var>203.27</var>shall not require payrolls to be included in the average calculation.<br/>
<a id="pl.203.28"></a><var>203.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.3.0"></a><a id="pl.203.29"></a><var>203.29</var>    Sec. 3. Minnesota Statutes 2006, section 290.068, subdivision 3, is amended to read:<br/>
<a id="pl.203.30"></a><var>203.30</var>    Subd. 3. <b>Limitation; carryover.</b> (a)(1) The credit for the taxable year shall not <br/>
<a id="pl.203.31"></a><var>203.31</var>exceed the liability for tax. "Liability for tax" for purposes of this section means the tax <br/>
<a id="pl.203.32"></a><var>203.32</var>imposed under this chapter section 290.06, subdivision 1, for the taxable year reduced by <br/>
<a id="pl.203.33"></a><var>203.33</var>the sum of the nonrefundable credits allowed under this chapter.<br/>
<a id="pl.204.1"></a><var>204.1</var>    (2) In the case of a corporation which is a partner in a partnership, the credit allowed <br/>
<a id="pl.204.2"></a><var>204.2</var>for the taxable year shall not exceed the lesser of the amount determined under clause (1) <br/>
<a id="pl.204.3"></a><var>204.3</var>for the taxable year or an amount (separately computed with respect to the corporation's <br/>
<a id="pl.204.4"></a><var>204.4</var>interest in the trade or business or entity) equal to the amount of tax attributable to that <br/>
<a id="pl.204.5"></a><var>204.5</var>portion of taxable income which is allocable or apportionable to the corporation's interest <br/>
<a id="pl.204.6"></a><var>204.6</var>in the trade or business or entity.<br/>
<a id="pl.204.7"></a><var>204.7</var>    (b) If the amount of the credit determined under this section for any taxable year <br/>
<a id="pl.204.8"></a><var>204.8</var>exceeds the limitation under clause (a), the excess shall be a research credit carryover to <br/>
<a id="pl.204.9"></a><var>204.9</var>each of the 15 succeeding taxable years. The entire amount of the excess unused credit for <br/>
<a id="pl.204.10"></a><var>204.10</var>the taxable year shall be carried first to the earliest of the taxable years to which the credit <br/>
<a id="pl.204.11"></a><var>204.11</var>may be carried and then to each successive year to which the credit may be carried. The <br/>
<a id="pl.204.12"></a><var>204.12</var>amount of the unused credit which may be added under this clause shall not exceed the <br/>
<a id="pl.204.13"></a><var>204.13</var>taxpayer's liability for tax less the research credit for the taxable year.<br/>
<a id="pl.204.14"></a><var>204.14</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.204.15"></a><var>204.15</var>December 31, 2007.<br/>
<br/>
<a id="bill.12.4.0"></a><a id="pl.204.16"></a><var>204.16</var>    Sec. 4. Minnesota Statutes 2006, section 290.07, subdivision 1, is amended to read:<br/>
<a id="pl.204.17"></a><var>204.17</var>    Subdivision 1. <b>Annual accounting period.</b> Net income and taxable net income <br/>
<a id="pl.204.18"></a><var>204.18</var>shall be computed upon the basis of the taxpayer's annual accounting period. If a taxpayer <br/>
<a id="pl.204.19"></a><var>204.19</var>has no annual accounting period, or has one other than a fiscal year, as heretofore defined, <br/>
<a id="pl.204.20"></a><var>204.20</var>the net income and taxable net income shall be computed on the basis of the calendar year. <br/>
<a id="pl.204.21"></a><var>204.21</var>Taxpayers shall employ the same accounting period on which they report, or would be <br/>
<a id="pl.204.22"></a><var>204.22</var>required to report, their net income under the Internal Revenue Code. The commissioner <br/>
<a id="pl.204.23"></a><var>204.23</var>shall provide by rule for the determination of the accounting period for taxpayers who <br/>
<a id="pl.204.24"></a><var>204.24</var>file a combined report under section 
         <statute_ref>290.34 290.17, subdivision 2 4</statute_ref>, when members of <br/>
<a id="pl.204.25"></a><var>204.25</var>the group use different accounting periods for federal income tax purposes. Unless the <br/>
<a id="pl.204.26"></a><var>204.26</var>taxpayer changes its accounting period for federal purposes, the due date of the return <br/>
<a id="pl.204.27"></a><var>204.27</var>is not changed. <br/>
<a id="pl.204.28"></a><var>204.28</var>    A taxpayer may change accounting periods only with the consent of the <br/>
<a id="pl.204.29"></a><var>204.29</var>commissioner. In case of any such change, the taxpayer shall pay a tax for the period <br/>
<a id="pl.204.30"></a><var>204.30</var>not included in either the taxpayer's former or newly adopted taxable year, computed as <br/>
<a id="pl.204.31"></a><var>204.31</var>provided in section 
         <statute_ref>290.32</statute_ref>. <br/>
<a id="pl.204.32"></a><var>204.32</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.204.33"></a><var>204.33</var>December 31, 2007.<br/>
<br/>
<a id="bill.12.5.0"></a><a id="pl.204.34"></a><var>204.34</var>    Sec. 5. Minnesota Statutes 2006, section 290.21, subdivision 4, is amended to read:<br/>
<a id="pl.205.1"></a><var>205.1</var>    Subd. 4. <b>Dividends received from another corporation.</b> (a)(1) Eighty percent <br/>
<a id="pl.205.2"></a><var>205.2</var>of dividends received by a corporation during the taxable year from another corporation, <br/>
<a id="pl.205.3"></a><var>205.3</var>in which the recipient owns 20 percent or more of the stock, by vote and value, not <br/>
<a id="pl.205.4"></a><var>205.4</var>including stock described in section 1504(a)(4) of the Internal Revenue Code when the <br/>
<a id="pl.205.5"></a><var>205.5</var>corporate stock with respect to which dividends are paid does not constitute the stock in <br/>
<a id="pl.205.6"></a><var>205.6</var>trade of the taxpayer or would not be included in the inventory of the taxpayer, or does not <br/>
<a id="pl.205.7"></a><var>205.7</var>constitute property held by the taxpayer primarily for sale to customers in the ordinary <br/>
<a id="pl.205.8"></a><var>205.8</var>course of the taxpayer's trade or business, or when the trade or business of the taxpayer <br/>
<a id="pl.205.9"></a><var>205.9</var>does not consist principally of the holding of the stocks and the collection of the income <br/>
<a id="pl.205.10"></a><var>205.10</var>and gains therefrom; and<br/>
<a id="pl.205.11"></a><var>205.11</var>    (2)(i) the remaining 20 percent of dividends if the dividends received are the stock in <br/>
<a id="pl.205.12"></a><var>205.12</var>an affiliated company transferred in an overall plan of reorganization and the dividend <br/>
<a id="pl.205.13"></a><var>205.13</var>is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as <br/>
<a id="pl.205.14"></a><var>205.14</var>amended through December 31, 1989;<br/>
<a id="pl.205.15"></a><var>205.15</var>    (ii) the remaining 20 percent of dividends if the dividends are received from a <br/>
<a id="pl.205.16"></a><var>205.16</var>corporation which is subject to tax under section 
         <statute_ref>290.36</statute_ref> and which is a member of an <br/>
<a id="pl.205.17"></a><var>205.17</var>affiliated group of corporations as defined by the Internal Revenue Code and the dividend <br/>
<a id="pl.205.18"></a><var>205.18</var>is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as <br/>
<a id="pl.205.19"></a><var>205.19</var>amended through December 31, 1989, or is deducted under an election under section <br/>
<a id="pl.205.20"></a><var>205.20</var>243(b) of the Internal Revenue Code; or <br/>
<a id="pl.205.21"></a><var>205.21</var>    (iii) the remaining 20 percent of the dividends if the dividends are received from a <br/>
<a id="pl.205.22"></a><var>205.22</var>property and casualty insurer as defined under section 
         <statute_ref>60A.60, subdivision 8</statute_ref>, which is a <br/>
<a id="pl.205.23"></a><var>205.23</var>member of an affiliated group of corporations as defined by the Internal Revenue Code <br/>
<a id="pl.205.24"></a><var>205.24</var>and either: (A) the dividend is eliminated in consolidation under Treasury Regulation <br/>
<a id="pl.205.25"></a><var>205.25</var>1.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted <br/>
<a id="pl.205.26"></a><var>205.26</var>under an election under section 243(b) of the Internal Revenue Code. <br/>
<a id="pl.205.27"></a><var>205.27</var>    (b) Seventy percent of dividends received by a corporation during the taxable year <br/>
<a id="pl.205.28"></a><var>205.28</var>from another corporation in which the recipient owns less than 20 percent of the stock, <br/>
<a id="pl.205.29"></a><var>205.29</var>by vote or value, not including stock described in section 1504(a)(4) of the Internal <br/>
<a id="pl.205.30"></a><var>205.30</var>Revenue Code when the corporate stock with respect to which dividends are paid does not <br/>
<a id="pl.205.31"></a><var>205.31</var>constitute the stock in trade of the taxpayer, or does not constitute property held by the <br/>
<a id="pl.205.32"></a><var>205.32</var>taxpayer primarily for sale to customers in the ordinary course of the taxpayer's trade or <br/>
<a id="pl.205.33"></a><var>205.33</var>business, or when the trade or business of the taxpayer does not consist principally of the <br/>
<a id="pl.205.34"></a><var>205.34</var>holding of the stocks and the collection of income and gain therefrom.<br/>
<a id="pl.206.1"></a><var>206.1</var>    (c) The dividend deduction provided in this subdivision shall be allowed only with <br/>
<a id="pl.206.2"></a><var>206.2</var>respect to dividends that are included in a corporation's Minnesota taxable net income <br/>
<a id="pl.206.3"></a><var>206.3</var>for the taxable year.<br/>
<a id="pl.206.4"></a><var>206.4</var>    The dividend deduction provided in this subdivision does not apply to a dividend <br/>
<a id="pl.206.5"></a><var>206.5</var>from a corporation which, for the taxable year of the corporation in which the distribution <br/>
<a id="pl.206.6"></a><var>206.6</var>is made or for the next preceding taxable year of the corporation, is a corporation exempt <br/>
<a id="pl.206.7"></a><var>206.7</var>from tax under section 501 of the Internal Revenue Code.<br/>
<a id="pl.206.8"></a><var>206.8</var>    The dividend deduction provided in this subdivision applies to the amount of <br/>
<a id="pl.206.9"></a><var>206.9</var>regulated investment company dividends only to the extent determined under section <br/>
<a id="pl.206.10"></a><var>206.10</var>854(b) of the Internal Revenue Code.<br/>
<a id="pl.206.11"></a><var>206.11</var>    The dividend deduction provided in this subdivision shall not be allowed with <br/>
<a id="pl.206.12"></a><var>206.12</var>respect to any dividend for which a deduction is not allowed under the provisions of <br/>
<a id="pl.206.13"></a><var>206.13</var>section 246(c) of the Internal Revenue Code.<br/>
<a id="pl.206.14"></a><var>206.14</var>    (d) If dividends received by a corporation that does not have nexus with Minnesota <br/>
<a id="pl.206.15"></a><var>206.15</var>under the provisions of Public Law 86-272 are included as income on the return of <br/>
<a id="pl.206.16"></a><var>206.16</var>an affiliated corporation permitted or required to file a combined report under section <br/>
<a id="pl.206.17"></a><var>206.17</var>290.17, subdivision 4 or
<statute_ref>290.34, subdivision 2</statute_ref>, then for purposes of this subdivision the <br/>
<a id="pl.206.18"></a><var>206.18</var>determination as to whether the trade or business of the corporation consists principally <br/>
<a id="pl.206.19"></a><var>206.19</var>of the holding of stocks and the collection of income and gains therefrom shall be made <br/>
<a id="pl.206.20"></a><var>206.20</var>with reference to the trade or business of the affiliated corporation having a nexus with <br/>
<a id="pl.206.21"></a><var>206.21</var>Minnesota. <br/>
<a id="pl.206.22"></a><var>206.22</var>    (e) The deduction provided by this subdivision does not apply if the dividends are <br/>
<a id="pl.206.23"></a><var>206.23</var>paid by a FSC as defined in section 922 of the Internal Revenue Code.<br/>
<a id="pl.206.24"></a><var>206.24</var>    (f) If one or more of the members of the unitary group whose income is included on <br/>
<a id="pl.206.25"></a><var>206.25</var>the combined report received a dividend, the deduction under this subdivision for each <br/>
<a id="pl.206.26"></a><var>206.26</var>member of the unitary business required to file a return under this chapter is the product <br/>
<a id="pl.206.27"></a><var>206.27</var>of: (1) 100 percent of the dividends received by members of the group; (2) the percentage <br/>
<a id="pl.206.28"></a><var>206.28</var>allowed pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's business <br/>
<a id="pl.206.29"></a><var>206.29</var>income apportionable to this state for the taxable year under section 
         <statute_ref>290.191</statute_ref> or 
         <statute_ref>290.20</statute_ref>. <br/>
<a id="pl.206.30"></a><var>206.30</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.206.31"></a><var>206.31</var>December 31, 2007.<br/>
<br/>
<a id="bill.12.6.0"></a><a id="pl.206.32"></a><var>206.32</var>    Sec. 6. Minnesota Statutes 2006, section 290.92, subdivision 26, is amended to read:<br/>
<a id="pl.206.33"></a><var>206.33</var>    Subd. 26. <b>Extension of withholding to certain payments where identifying </b><br/>
<a id="pl.206.34"></a><var>206.34</var><b>number not furnished or inaccurate.</b> (a) If, in the case of any reportable payment, (1) <br/>
<a id="pl.206.35"></a><var>206.35</var>the payee fails to furnish the payee's Social Security account number to the payor, or <br/>
<a id="pl.207.1"></a><var>207.1</var>(2) the payee is subject to federal backup withholding on the reportable payment under <br/>
<a id="pl.207.2"></a><var>207.2</var>section 3406 of the Internal Revenue Code, or (3) the commissioner notifies the payor that <br/>
<a id="pl.207.3"></a><var>207.3</var>the Social Security account number furnished by the payee is incorrect, then the payor <br/>
<a id="pl.207.4"></a><var>207.4</var>shall deduct and withhold from the payment a tax equal to the amount of the payment <br/>
<a id="pl.207.5"></a><var>207.5</var>multiplied by the highest rate used in determining the income tax liability of an individual <br/>
<a id="pl.207.6"></a><var>207.6</var>under section 
         <statute_ref>290.06, subdivision 2c</statute_ref>. <br/>
<a id="pl.207.7"></a><var>207.7</var>    (b)(1) In the case of any failure described in clause (a)(1), clause (a) shall apply to <br/>
<a id="pl.207.8"></a><var>207.8</var>any reportable payment made by the payor during the period during which the Social <br/>
<a id="pl.207.9"></a><var>207.9</var>Security account number has not been furnished.<br/>
<a id="pl.207.10"></a><var>207.10</var>    (2) In any case where there is a notification described in clause (a)(2)(3), clause (a) <br/>
<a id="pl.207.11"></a><var>207.11</var>shall apply to any reportable payment made by the payor (i) after the close of the 30th <br/>
<a id="pl.207.12"></a><var>207.12</var>day after the day on which the payor received the notification, and (ii) before the payee <br/>
<a id="pl.207.13"></a><var>207.13</var>furnishes another Social Security account number.<br/>
<a id="pl.207.14"></a><var>207.14</var>    (3)(i) Unless the payor elects not to have this subparagraph apply with respect to <br/>
<a id="pl.207.15"></a><var>207.15</var>the payee, clause (a) shall also apply to any reportable payment made after the close of <br/>
<a id="pl.207.16"></a><var>207.16</var>the period described in paragraph (1) or (2) (as the case may be) and before the 30th <br/>
<a id="pl.207.17"></a><var>207.17</var>day after the close of the period.<br/>
<a id="pl.207.18"></a><var>207.18</var>    (ii) If the payor elects the application of this subparagraph with respect to the payee, <br/>
<a id="pl.207.19"></a><var>207.19</var>clause (a) shall also apply to any reportable payment made during the 30-day period <br/>
<a id="pl.207.20"></a><var>207.20</var>described in paragraph (2).<br/>
<a id="pl.207.21"></a><var>207.21</var>    (iii) The payor may elect a period shorter than the grace period set forth in <br/>
<a id="pl.207.22"></a><var>207.22</var>subparagraph (i) or (ii) as the case may be.<br/>
<a id="pl.207.23"></a><var>207.23</var>    (c) The provisions of section 3406 of the Internal Revenue Code shall apply and <br/>
<a id="pl.207.24"></a><var>207.24</var>shall govern when withholding shall be required and the definition of terms. The term <br/>
<a id="pl.207.25"></a><var>207.25</var>"reportable payment" shall include only those payments for personal services. No tax <br/>
<a id="pl.207.26"></a><var>207.26</var>shall be deducted or withheld under this subdivision with respect to any amount for <br/>
<a id="pl.207.27"></a><var>207.27</var>which withholding is otherwise required under this section. For purposes of this section, <br/>
<a id="pl.207.28"></a><var>207.28</var>payments which are subject to withholding under this subdivision shall be treated as if <br/>
<a id="pl.207.29"></a><var>207.29</var>they were wages paid by an employer to an employee and amounts deducted and withheld <br/>
<a id="pl.207.30"></a><var>207.30</var>under this subdivision shall be treated as if deducted and withheld under subdivision 2a.<br/>
<a id="pl.207.31"></a><var>207.31</var>    (d) Whenever the commissioner notifies a payor under this subdivision that the <br/>
<a id="pl.207.32"></a><var>207.32</var>Social Security account number furnished by any payee is incorrect, the commissioner <br/>
<a id="pl.207.33"></a><var>207.33</var>shall at the same time furnish a copy of the notice to the payor, and the payor shall <br/>
<a id="pl.207.34"></a><var>207.34</var>promptly furnish the copy to the payee. If the commissioner notifies a payor under this <br/>
<a id="pl.207.35"></a><var>207.35</var>subdivision that the Social Security account number furnished by any payee is incorrect <br/>
<a id="pl.207.36"></a><var>207.36</var>and the payee subsequently furnishes another Social Security account number to the <br/>
<a id="pl.208.1"></a><var>208.1</var>payor, the payor shall promptly notify the commissioner of the other Social Security <br/>
<a id="pl.208.2"></a><var>208.2</var>account number furnished.<br/>
<a id="pl.208.3"></a><var>208.3</var><b>EFFECTIVE DATE.</b>This section is effective for payments made after December <br/>
<a id="pl.208.4"></a><var>208.4</var>31, 2008.<br/>
<br/>
<a id="bill.12.7.0"></a><a id="pl.208.5"></a><var>208.5</var>    Sec. 7. Minnesota Statutes 2006, section 290.92, subdivision 31, as added by Laws <br/>
<a id="pl.208.6"></a><var>208.6</var>2008, chapter 154, article 3, section 8, is amended to read:<br/>
<a id="pl.208.7"></a><var>208.7</var>    Subd. 31.  <b>Payments to persons who are not employees.</b> (a) For purposes of this <br/>
<a id="pl.208.8"></a><var>208.8</var>subdivision, "contractor" means a person carrying on a trade or business described in <br/>
<a id="pl.208.9"></a><var>208.9</var>industry code numbers 23 through 238990 of the North American Industry Classification <br/>
<a id="pl.208.10"></a><var>208.10</var>System. <br/>
<a id="pl.208.11"></a><var>208.11</var>    (b) A contractor or a third-party bulk filer acting on behalf of a contractor, who <br/>
<a id="pl.208.12"></a><var>208.12</var>makes payments to an individual, carrying on a trade or business described in paragraph <br/>
<a id="pl.208.13"></a><var>208.13</var>(a) as a sole proprietorship, must deduct and withhold two percent of the payment as <br/>
<a id="pl.208.14"></a><var>208.14</var>Minnesota withholding tax when the amount the contractor paid to that individual during <br/>
<a id="pl.208.15"></a><var>208.15</var>the calendar year exceeds $600. <br/>
<a id="pl.208.16"></a><var>208.16</var>    (c) A payment subject to withholding under this subdivision must be treated as if <br/>
<a id="pl.208.17"></a><var>208.17</var>the payment were a wage paid by an employer to an employee. The requirements in the <br/>
<a id="pl.208.18"></a><var>208.18</var>definitions of "employee" and "employer" in subdivision 1 relating to geographic location <br/>
<a id="pl.208.19"></a><var>208.19</var>apply in determining whether withholding tax applies under this subdivision, but without <br/>
<a id="pl.208.20"></a><var>208.20</var>regard to whether the contractor or the individual otherwise satisfy the definition of an <br/>
<a id="pl.208.21"></a><var>208.21</var>employer or an employee. Each recipient of a payment subject to withholding under this <br/>
<a id="pl.208.22"></a><var>208.22</var>subdivision must furnish the contractor with a statement of the recipient's name, address, <br/>
<a id="pl.208.23"></a><var>208.23</var>and Social Security account number. <br/>
<a id="pl.208.24"></a><var>208.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.8.0"></a><a id="pl.208.25"></a><var>208.25</var>    Sec. 8. <b> REPEALER.</b><br/>
<a id="pl.208.26"></a><var>208.26</var>Minnesota Rules, part 8031.0100, subpart 3, is repealed effective the day following <br/>
<a id="pl.208.27"></a><var>208.27</var>final enactment.<br/>
<a id="pl.208.28"></a><var>208.28</var>Minnesota Rules, part 8093.2100, is repealed effective the day following final <br/>
<a id="pl.208.29"></a><var>208.29</var>enactment.<br/>
<br/>
<a id="bill.13.0.0"></a>

<a id="bill.13.1.0"></a><a id="pl.208.32"></a><var>208.32</var>    Section 1. Minnesota Statutes 2006, section 289A.55, is amended by adding a <br/>
<a id="pl.208.33"></a><var>208.33</var>subdivision to read:<br/>
<a id="pl.209.1"></a><var>209.1</var>    Subd. 10. <b>Relief for purchasers.</b> A purchaser that meets the requirements of section <br/>
<a id="pl.209.2"></a><var>209.2</var>297A.995, subdivision 11, is relieved from the imposition of interest on tax and penalty.<br/>
<a id="pl.209.3"></a><var>209.3</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.209.4"></a><var>209.4</var>December 31, 2008.<br/>
<br/>
<a id="bill.13.2.0"></a><a id="pl.209.5"></a><var>209.5</var>    Sec. 2. Minnesota Statutes 2006, section 289A.60, is amended by adding a subdivision <br/>
<a id="pl.209.6"></a><var>209.6</var>to read:<br/>
<a id="pl.209.7"></a><var>209.7</var>    Subd. 30. <b>Relief for purchasers.</b> A purchaser that meets the requirements of <br/>
<a id="pl.209.8"></a><var>209.8</var>section 297A.995, subdivision 11, is relieved from the imposition of penalty.<br/>
<a id="pl.209.9"></a><var>209.9</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.209.10"></a><var>209.10</var>December 31, 2008.<br/>
<br/>
<a id="bill.13.3.0"></a><a id="pl.209.11"></a><var>209.11</var>    Sec. 3. Minnesota Statutes 2006, section 297A.61, subdivision 29, is amended to read:<br/>
<a id="pl.209.12"></a><var>209.12</var>    Subd. 29. <b>State.</b> Unless specifically provided otherwise, "state" means any state of <br/>
<a id="pl.209.13"></a><var>209.13</var>the United States, the Commonwealth of Puerto Rico, and the District of Columbia.<br/>
<a id="pl.209.14"></a><var>209.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.4.0"></a><a id="pl.209.15"></a><var>209.15</var>    Sec. 4. Minnesota Statutes 2006, section 297A.665, as amended by Laws 2008, chapter <br/>
<a id="pl.209.16"></a><var>209.16</var>154, article 12, section 20, is amended to read:<br/>
<a id="pl.209.17"></a><var>209.17</var><b>297A.665 PRESUMPTION OF TAX; BURDEN OF PROOF. </b><br/>
<a id="pl.209.18"></a><var>209.18</var>    (a) For the purpose of the proper administration of this chapter and to prevent <br/>
<a id="pl.209.19"></a><var>209.19</var>evasion of the tax, until the contrary is established, it is presumed that: <br/>
<a id="pl.209.20"></a><var>209.20</var>    (1) all gross receipts are subject to the tax; and <br/>
<a id="pl.209.21"></a><var>209.21</var>    (2) all retail sales for delivery in Minnesota are for storage, use, or other consumption <br/>
<a id="pl.209.22"></a><var>209.22</var>in Minnesota. <br/>
<a id="pl.209.23"></a><var>209.23</var>    (b) The burden of proving that a sale is not a taxable retail sale is on the seller. <br/>
<a id="pl.209.24"></a><var>209.24</var>However, a seller is relieved of liability if: <br/>
<a id="pl.209.25"></a><var>209.25</var>    (1) the seller obtains a fully completed exemption certificate or all the relevant <br/>
<a id="pl.209.26"></a><var>209.26</var>information required by section 
         <statute_ref>297A.72, subdivision 2</statute_ref>, at the time of the sale or within <br/>
<a id="pl.209.27"></a><var>209.27</var>90 days after the date of the sale; or <br/>
<a id="pl.209.28"></a><var>209.28</var>    (2) if the seller has not obtained a fully completed exemption certificate or all the <br/>
<a id="pl.209.29"></a><var>209.29</var>relevant information required by section 
         <statute_ref>297A.72, subdivision 2</statute_ref>, within the time provided <br/>
<a id="pl.209.30"></a><var>209.30</var>in clause (1), within 120 days after a request for substantiation by the commissioner, <br/>
<a id="pl.209.31"></a><var>209.31</var>the seller either: <br/>
<a id="pl.210.1"></a><var>210.1</var>    (i) obtains in good faith a fully completed exemption certificate or all the relevant <br/>
<a id="pl.210.2"></a><var>210.2</var>information required by section 
         <statute_ref>297A.72, subdivision 2</statute_ref>, from the purchaser; or <br/>
<a id="pl.210.3"></a><var>210.3</var>    (ii) proves by other means that the transaction was not subject to tax. <br/>
<a id="pl.210.4"></a><var>210.4</var>    (c) Notwithstanding paragraph (b), relief from liability does not apply to a seller who: <br/>
<a id="pl.210.5"></a><var>210.5</var>    (1) fraudulently fails to collect the tax; or <br/>
<a id="pl.210.6"></a><var>210.6</var>    (2) solicits purchasers to participate in the unlawful claim of an exemption. <br/>
<a id="pl.210.7"></a><var>210.7</var>    (d) A certified service provider, as defined in section 297A.995, subdivision 2, is <br/>
<a id="pl.210.8"></a><var>210.8</var>relieved of liability under this section to the extent a seller who is its client is relieved of <br/>
<a id="pl.210.9"></a><var>210.9</var>liability.<br/>
<a id="pl.210.10"></a><var>210.10</var>    (d) (e) A purchaser of tangible personal property or any items listed in section <br/>
<statute_ref><a id="pl.210.11"></a><var>210.11</var>297A.63
         </statute_ref> that are shipped or brought to Minnesota by the purchaser has the burden <br/>
<a id="pl.210.12"></a><var>210.12</var>of proving that the property was not purchased from a retailer for storage, use, or <br/>
<a id="pl.210.13"></a><var>210.13</var>consumption in Minnesota. <br/>
<a id="pl.210.14"></a><var>210.14</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for sales and purchases <br/>
<a id="pl.210.15"></a><var>210.15</var>made after December 31, 2007.<br/>
<br/>
<a id="bill.13.5.0"></a><a id="pl.210.16"></a><var>210.16</var>    Sec. 5. Minnesota Statutes 2006, section 297A.67, subdivision 7, as amended by Laws <br/>
<a id="pl.210.17"></a><var>210.17</var>2008, chapter 154, article 12, section 26, is amended to read:<br/>
<a id="pl.210.18"></a><var>210.18</var>    Subd. 7.  <b>Drugs; medical devices.</b> (a) Sales of the following drugs and medical <br/>
<a id="pl.210.19"></a><var>210.19</var>devices for human use are exempt: <br/>
<a id="pl.210.20"></a><var>210.20</var>    (1) drugs for human use, including over-the-counter drugs; <br/>
<a id="pl.210.21"></a><var>210.21</var>    (2) single-use finger-pricking devices for the extraction of blood and other single-use <br/>
<a id="pl.210.22"></a><var>210.22</var>devices and single-use diagnostic agents used in diagnosing, monitoring, or treating <br/>
<a id="pl.210.23"></a><var>210.23</var>diabetes; <br/>
<a id="pl.210.24"></a><var>210.24</var>    (3) insulin and medical oxygen for human use, regardless of whether prescribed <br/>
<a id="pl.210.25"></a><var>210.25</var>or sold over the counter; <br/>
<a id="pl.210.26"></a><var>210.26</var>    (4) prosthetic devices; <br/>
<a id="pl.210.27"></a><var>210.27</var>    (5) durable medical equipment for home use only; <br/>
<a id="pl.210.28"></a><var>210.28</var>    (6) mobility enhancing equipment; <br/>
<a id="pl.210.29"></a><var>210.29</var>    (7) prescription corrective eyeglasses; and <br/>
<a id="pl.210.30"></a><var>210.30</var>    (8) kidney dialysis equipment, including repair and replacement parts. <br/>
<a id="pl.210.31"></a><var>210.31</var>    (b) For purposes of this subdivision: <br/>
<a id="pl.210.32"></a><var>210.32</var>    (1) "Drug" means a compound, substance, or preparation, and any component of <br/>
<a id="pl.210.33"></a><var>210.33</var>a compound, substance, or preparation, other than food and food ingredients, dietary <br/>
<a id="pl.210.34"></a><var>210.34</var>supplements, or alcoholic beverages that is: <br/>
<a id="pl.211.1"></a><var>211.1</var>    (i) recognized in the official United States Pharmacopoeia, official Homeopathic <br/>
<a id="pl.211.2"></a><var>211.2</var>Pharmacopoeia of the United States, or official National Formulary, and supplement <br/>
<a id="pl.211.3"></a><var>211.3</var>to any of them; <br/>
<a id="pl.211.4"></a><var>211.4</var>    (ii) intended for use in the diagnosis, cure, mitigation, treatment, or prevention <br/>
<a id="pl.211.5"></a><var>211.5</var>of disease; or <br/>
<a id="pl.211.6"></a><var>211.6</var>    (iii) intended to affect the structure or any function of the body. <br/>
<a id="pl.211.7"></a><var>211.7</var>    (2) "Durable medical equipment" means equipment, including repair and <br/>
<a id="pl.211.8"></a><var>211.8</var>replacement parts, but not including mobility enhancing equipment, that: <br/>
<a id="pl.211.9"></a><var>211.9</var>    (i) can withstand repeated use; <br/>
<a id="pl.211.10"></a><var>211.10</var>    (ii) is primarily and customarily used to serve a medical purpose; <br/>
<a id="pl.211.11"></a><var>211.11</var>    (iii) generally is not useful to a person in the absence of illness or injury; and <br/>
<a id="pl.211.12"></a><var>211.12</var>    (iv) is not worn in or on the body. <br/>
<a id="pl.211.13"></a><var>211.13</var>    For purposes of this clause, "repair and replacement parts" includes all components <br/>
<a id="pl.211.14"></a><var>211.14</var>or attachments used in conjunction with the durable medical equipment, but does not <br/>
<a id="pl.211.15"></a><var>211.15</var>include repair and replacement parts which are for single patient use only.<br/>
<a id="pl.211.16"></a><var>211.16</var>    (3) "Mobility enhancing equipment" means equipment, including repair and <br/>
<a id="pl.211.17"></a><var>211.17</var>replacement parts, but not including durable medical equipment, that: <br/>
<a id="pl.211.18"></a><var>211.18</var>    (i) is primarily and customarily used to provide or increase the ability to move from <br/>
<a id="pl.211.19"></a><var>211.19</var>one place to another and that is appropriate for use either in a home or a motor vehicle; <br/>
<a id="pl.211.20"></a><var>211.20</var>    (ii) is not generally used by persons with normal mobility; and <br/>
<a id="pl.211.21"></a><var>211.21</var>    (iii) does not include any motor vehicle or equipment on a motor vehicle normally <br/>
<a id="pl.211.22"></a><var>211.22</var>provided by a motor vehicle manufacturer. <br/>
<a id="pl.211.23"></a><var>211.23</var>    (4) "Over-the-counter drug" means a drug that contains a label that identifies the <br/>
<a id="pl.211.24"></a><var>211.24</var>product as a drug as required by Code of Federal Regulations, title 21, section 
         <statute_ref>201.66</statute_ref>. The <br/>
<a id="pl.211.25"></a><var>211.25</var>label must include a "drug facts" panel or a statement of the active ingredients with a list of <br/>
<a id="pl.211.26"></a><var>211.26</var>those ingredients contained in the compound, substance, or preparation. Over-the-counter <br/>
<a id="pl.211.27"></a><var>211.27</var>drugs do not include grooming and hygiene products, regardless of whether they otherwise <br/>
<a id="pl.211.28"></a><var>211.28</var>meet the definition. "Grooming and hygiene products" are soaps, cleaning solutions, <br/>
<a id="pl.211.29"></a><var>211.29</var>shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and sunscreens. <br/>
<a id="pl.211.30"></a><var>211.30</var>    (5) "Prescribed" and "prescription" means a direction in the form of an order, <br/>
<a id="pl.211.31"></a><var>211.31</var>formula, or recipe issued in any form of oral, written, electronic, or other means of <br/>
<a id="pl.211.32"></a><var>211.32</var>transmission by a duly licensed health care professional. <br/>
<a id="pl.211.33"></a><var>211.33</var>    (6) "Prosthetic device" means a replacement, corrective, or supportive device, <br/>
<a id="pl.211.34"></a><var>211.34</var>including repair and replacement parts, worn on or in the body to: <br/>
<a id="pl.211.35"></a><var>211.35</var>    (i) artificially replace a missing portion of the body; <br/>
<a id="pl.211.36"></a><var>211.36</var>    (ii) prevent or correct physical deformity or malfunction; or <br/>
<a id="pl.212.1"></a><var>212.1</var>    (iii) support a weak or deformed portion of the body. <br/>
<a id="pl.212.2"></a><var>212.2</var>Prosthetic device does not include corrective eyeglasses. <br/>
<a id="pl.212.3"></a><var>212.3</var>    (7) "Kidney dialysis equipment" means equipment that: <br/>
<a id="pl.212.4"></a><var>212.4</var>    (i) is used to remove waste products that build up in the blood when the kidneys are <br/>
<a id="pl.212.5"></a><var>212.5</var>not able to do so on their own; and <br/>
<a id="pl.212.6"></a><var>212.6</var>    (ii) can withstand repeated use, including multiple use by a single patient, <br/>
<a id="pl.212.7"></a><var>212.7</var>notwithstanding the provisions of clause (2). <br/>
<a id="pl.212.8"></a><var>212.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.6.0"></a><a id="pl.212.9"></a><var>212.9</var>    Sec. 6. Minnesota Statutes 2006, section 297A.995, subdivision 10, is amended to read:<br/>
<a id="pl.212.10"></a><var>212.10</var>    Subd. 10. <b>Relief from certain liability.</b> (a) Notwithstanding subdivision 9, sellers <br/>
<a id="pl.212.11"></a><var>212.11</var>and certified service providers are relieved from liability to the state for having charged <br/>
<a id="pl.212.12"></a><var>212.12</var>and collected the incorrect amount of sales or use tax resulting from the seller or certified <br/>
<a id="pl.212.13"></a><var>212.13</var>service provider (1) relying on erroneous data provided by this state the commissioner <br/>
<a id="pl.212.14"></a><var>212.14</var>in the database files on tax rates, boundaries, or taxing jurisdiction assignments, or (2) <br/>
<a id="pl.212.15"></a><var>212.15</var>relying on erroneous data provided by the state in its taxability matrix concerning the <br/>
<a id="pl.212.16"></a><var>212.16</var>taxability of products and services.<br/>
<a id="pl.212.17"></a><var>212.17</var>    (b) Notwithstanding subdivision 9, sellers and certified service providers are <br/>
<a id="pl.212.18"></a><var>212.18</var>relieved from liability to the state for having charged and collected the incorrect amount <br/>
<a id="pl.212.19"></a><var>212.19</var>of sales or use tax resulting from the seller or certified service provider relying on the <br/>
<a id="pl.212.20"></a><var>212.20</var>certification by the commissioner as to the accuracy of a certified automated system as to <br/>
<a id="pl.212.21"></a><var>212.21</var>the taxability of product categories. The relief from liability provided by this paragraph <br/>
<a id="pl.212.22"></a><var>212.22</var>does not apply when the sellers or certified service providers have incorrectly classified <br/>
<a id="pl.212.23"></a><var>212.23</var>an item or transaction into a product category, unless the item or transaction within a <br/>
<a id="pl.212.24"></a><var>212.24</var>product category was approved by the commissioner or approved jointly by the states that <br/>
<a id="pl.212.25"></a><var>212.25</var>are signatories to the agreement. The sellers and certified service providers must revise a <br/>
<a id="pl.212.26"></a><var>212.26</var>classification within ten days after receipt of notice from the commissioner that an item or <br/>
<a id="pl.212.27"></a><var>212.27</var>transaction within a product category is incorrectly classified as to its taxability, or they <br/>
<a id="pl.212.28"></a><var>212.28</var>are not relieved from liability for the incorrect classification following the notification.<br/>
<a id="pl.212.29"></a><var>212.29</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for sales and purchases <br/>
<a id="pl.212.30"></a><var>212.30</var>made after December 31, 2007.<br/>
<br/>
<a id="bill.13.7.0"></a><a id="pl.212.31"></a><var>212.31</var>    Sec. 7. Minnesota Statutes 2006, section 297A.995, is amended by adding a <br/>
<a id="pl.212.32"></a><var>212.32</var>subdivision to read:<br/>
<a id="pl.212.33"></a><var>212.33</var>    Subd. 11. <b>Purchaser relief from certain liability.</b> (a) Notwithstanding other <br/>
<a id="pl.212.34"></a><var>212.34</var>provisions in the law, a purchaser is relieved from liability resulting from having paid <br/>
<a id="pl.213.1"></a><var>213.1</var>the incorrect amount of sales or use tax if a purchaser, whether or not holding a direct <br/>
<a id="pl.213.2"></a><var>213.2</var>pay permit, or a purchaser's seller or certified service provider relied on erroneous data <br/>
<a id="pl.213.3"></a><var>213.3</var>provided by this state in the database files on tax rates, boundaries, taxing jurisdiction <br/>
<a id="pl.213.4"></a><var>213.4</var>assignments, or in the taxability matrix. After providing an address-based database for <br/>
<a id="pl.213.5"></a><var>213.5</var>assigning taxing jurisdictions and their associated rates, no relief for errors resulting from <br/>
<a id="pl.213.6"></a><var>213.6</var>the purchaser's reliance on a database using zip codes is allowed.<br/>
<a id="pl.213.7"></a><var>213.7</var>    (b) With respect to reliance on the taxability matrix provided by this state in <br/>
<a id="pl.213.8"></a><var>213.8</var>paragraph (a), relief is limited to erroneous classifications in the taxability matrix for <br/>
<a id="pl.213.9"></a><var>213.9</var>items included within the classifications as "taxable," "exempt," "included in sales <br/>
<a id="pl.213.10"></a><var>213.10</var>price," "excluded from sales price," "included in the definition," and "excluded from <br/>
<a id="pl.213.11"></a><var>213.11</var>the definition."<br/>
<a id="pl.213.12"></a><var>213.12</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.213.13"></a><var>213.13</var>December 31, 2008.<br/>
<br/>
<a id="bill.13.8.0"></a><a id="pl.213.14"></a><var>213.14</var>    Sec. 8. Minnesota Statutes 2006, section 297A.995, is amended by adding a <br/>
<a id="pl.213.15"></a><var>213.15</var>subdivision to read:<br/>
<a id="pl.213.16"></a><var>213.16</var>    Subd. 12. <b>Database files.</b> For purposes of this section, "database files on tax rates, <br/>
<a id="pl.213.17"></a><var>213.17</var>boundaries, and taxing jurisdiction assignments" and the "taxability matrix" means those <br/>
<a id="pl.213.18"></a><var>213.18</var>databases and the taxability matrix required under the agreement.<br/>
<a id="pl.213.19"></a><var>213.19</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for sales and purchases <br/>
<a id="pl.213.20"></a><var>213.20</var>made after December 31, 2007.<br/>
<br/>
<a id="bill.14.0.0"></a>

<a id="bill.14.1.0"></a><a id="pl.213.23"></a><var>213.23</var>    Section 1. Minnesota Statutes 2007 Supplement, section 115A.1314, subdivision 2, <br/>
<a id="pl.213.24"></a><var>213.24</var>is amended to read:<br/>
<a id="pl.213.25"></a><var>213.25</var>    Subd. 2. <b>Creation of account; appropriations.</b> (a) The electronic waste account <br/>
<a id="pl.213.26"></a><var>213.26</var>is established in the environmental fund. The commissioner of revenue must deposit <br/>
<a id="pl.213.27"></a><var>213.27</var>receipts from the fee established in subdivision 1 in the account. Any interest earned on <br/>
<a id="pl.213.28"></a><var>213.28</var>the account must be credited to the account. Money from other sources may be credited to <br/>
<a id="pl.213.29"></a><var>213.29</var>the account. Beginning in the second program year and continuing each program year <br/>
<a id="pl.213.30"></a><var>213.30</var>thereafter, as of the last day of each program year, the commissioner of revenue shall <br/>
<a id="pl.213.31"></a><var>213.31</var>determine the total amount of the variable fees that were collected. By July 15, 2009, and <br/>
<a id="pl.213.32"></a><var>213.32</var>each July 15 thereafter, the commissioner of the Pollution Control Agency shall inform <br/>
<a id="pl.213.33"></a><var>213.33</var>the commissioner of revenue of the amount necessary to operate the program in the new <br/>
<a id="pl.214.1"></a><var>214.1</var>program year. To the extent that the total fees collected by the commissioner of revenue in <br/>
<a id="pl.214.2"></a><var>214.2</var>connection with this section exceeds exceed the amount the commissioner of the Pollution <br/>
<a id="pl.214.3"></a><var>214.3</var>Control Agency determines necessary to operate the program for the new program <br/>
<a id="pl.214.4"></a><var>214.4</var>year, the commissioner of revenue shall refund on a pro rata basis, to all manufacturers <br/>
<a id="pl.214.5"></a><var>214.5</var>who paid any fees for the previous program year, the amount of fees collected by the <br/>
<a id="pl.214.6"></a><var>214.6</var>commissioner of revenue in excess of the amount necessary to operate the program for the <br/>
<a id="pl.214.7"></a><var>214.7</var>new program year. No individual refund is required of amounts of $100 or less for a fiscal <br/>
<a id="pl.214.8"></a><var>214.8</var>year. Manufacturers who report collections less than 50 percent of their obligation for the <br/>
<a id="pl.214.9"></a><var>214.9</var>previous program year are not eligible for a refund. Amounts not refunded pursuant to this <br/>
<a id="pl.214.10"></a><var>214.10</var>paragraph shall remain in the account. The commissioner of revenue shall issue refunds <br/>
<a id="pl.214.11"></a><var>214.11</var>by August 10. In lieu of issuing a refund, the commissioner of revenue may grant credit <br/>
<a id="pl.214.12"></a><var>214.12</var>against a manufacturer's variable fee due by September 1.<br/>
<a id="pl.214.13"></a><var>214.13</var>    (b) Until June 30, 2009, money in the account is annually appropriated to the <br/>
<a id="pl.214.14"></a><var>214.14</var>Pollution Control Agency:<br/>
<a id="pl.214.15"></a><var>214.15</var>    (1) for the purpose of implementing sections 
         <statute_ref>115A.1312</statute_ref> to 
         <statute_ref>115A.1330</statute_ref>, including <br/>
<a id="pl.214.16"></a><var>214.16</var>transfer to the commissioner of revenue to carry out the department's duties under <br/>
<a id="pl.214.17"></a><var>214.17</var>section 
         <statute_ref>115A.1320, subdivision 2</statute_ref>, and transfer to the commissioner of administration for <br/>
<a id="pl.214.18"></a><var>214.18</var>responsibilities under section 
         <statute_ref>115A.1324</statute_ref>; and <br/>
<a id="pl.214.19"></a><var>214.19</var>    (2) to the commissioner of the Pollution Control Agency to be distributed on a <br/>
<a id="pl.214.20"></a><var>214.20</var>competitive basis through contracts with counties outside the 11-county metropolitan <br/>
<a id="pl.214.21"></a><var>214.21</var>area, as defined in paragraph (c), and with private entities that collect for recycling <br/>
<a id="pl.214.22"></a><var>214.22</var>covered electronic devices in counties outside the 11-county metropolitan area, where the <br/>
<a id="pl.214.23"></a><var>214.23</var>collection and recycling is consistent with the respective county's solid waste plan, for <br/>
<a id="pl.214.24"></a><var>214.24</var>the purpose of carrying out the activities under sections 
         <statute_ref>115A.1312</statute_ref> to 
         <statute_ref>115A.1330</statute_ref>. In <br/>
<a id="pl.214.25"></a><var>214.25</var>awarding competitive grants under this clause, the commissioner must give preference to <br/>
<a id="pl.214.26"></a><var>214.26</var>counties and private entities that are working cooperatively with manufacturers to help <br/>
<a id="pl.214.27"></a><var>214.27</var>them meet their recycling obligations under section 
         <statute_ref>115A.1318, subdivision 1</statute_ref>.<br/>
<a id="pl.214.28"></a><var>214.28</var>    (c) The 11-county metropolitan area consists of the counties of Anoka, Carver, <br/>
<a id="pl.214.29"></a><var>214.29</var>Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright.<br/>
<a id="pl.214.30"></a><var>214.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.2.0"></a><a id="pl.214.31"></a><var>214.31</var>    Sec. 2. Minnesota Statutes 2006, section 270C.56, subdivision 1, as amended by Laws <br/>
<a id="pl.214.32"></a><var>214.32</var>2008, chapter 154, article 15, section 7, is amended to read:<br/>
<a id="pl.214.33"></a><var>214.33</var>    Subdivision 1.  <b>Liability imposed.</b> A person who, either singly or jointly with <br/>
<a id="pl.214.34"></a><var>214.34</var>others, has the control of, supervision of, or responsibility for filing returns or reports, <br/>
<a id="pl.214.35"></a><var>214.35</var>paying taxes, or collecting or withholding and remitting taxes and who fails to do so, or a <br/>
<a id="pl.215.1"></a><var>215.1</var>person who is liable under any other law, is liable for the payment of taxes, penalties, and <br/>
<a id="pl.215.2"></a><var>215.2</var>interest arising under chapters 295, 296A, 297A, 297F, and 297G, or sections 
         <statute_ref>256.9658, <br/>
<a id="pl.215.3"></a><var>215.3</var>290.92,
</statute_ref> and 
         <statute_ref>297E.02</statute_ref>, and, for the taxes listed in this subdivision, the applicable penalties <br/>
<a id="pl.215.4"></a><var>215.4</var>for nonpayment under section 
         <statute_ref>289A.60</statute_ref>. <br/>
<a id="pl.215.5"></a><var>215.5</var><b>EFFECTIVE DATE.</b>This section is effective for fees due after June 30, 2008.<br/>
<br/>
<a id="bill.14.3.0"></a><a id="pl.215.6"></a><var>215.6</var>    Sec. 3. Minnesota Statutes 2006, section 295.50, subdivision 4, is amended to read:<br/>
<a id="pl.215.7"></a><var>215.7</var>    Subd. 4. <b>Health care provider.</b> (a) "Health care provider" means:<br/>
<a id="pl.215.8"></a><var>215.8</var>    (1) a person whose health care occupation is regulated or required to be regulated by <br/>
<a id="pl.215.9"></a><var>215.9</var>the state of Minnesota furnishing any or all of the following goods or services directly to a <br/>
<a id="pl.215.10"></a><var>215.10</var>patient or consumer: medical, surgical, optical, visual, dental, hearing, nursing services, <br/>
<a id="pl.215.11"></a><var>215.11</var>drugs, laboratory, diagnostic or therapeutic services;<br/>
<a id="pl.215.12"></a><var>215.12</var>    (2) a person who provides goods and services not listed in clause (1) that qualify for <br/>
<a id="pl.215.13"></a><var>215.13</var>reimbursement under the medical assistance program provided under chapter 256B;<br/>
<a id="pl.215.14"></a><var>215.14</var>    (3) a staff model health plan company;<br/>
<a id="pl.215.15"></a><var>215.15</var>    (4) an ambulance service required to be licensed; or<br/>
<a id="pl.215.16"></a><var>215.16</var>    (5) a person who sells or repairs hearing aids and related equipment or prescription <br/>
<a id="pl.215.17"></a><var>215.17</var>eyewear.<br/>
<a id="pl.215.18"></a><var>215.18</var>    (b) Health care provider does not include:<br/>
<a id="pl.215.19"></a><var>215.19</var>    (1) hospitals; medical supplies distributors, except as specified under paragraph <br/>
<a id="pl.215.20"></a><var>215.20</var>(a), clause (5); nursing homes licensed under chapter 144A or licensed in any other <br/>
<a id="pl.215.21"></a><var>215.21</var>jurisdiction; wholesale drug distributors; pharmacies; surgical centers; bus and taxicab <br/>
<a id="pl.215.22"></a><var>215.22</var>transportation, or any other providers of transportation services other than ambulance <br/>
<a id="pl.215.23"></a><var>215.23</var>services required to be licensed; supervised living facilities for persons with developmental <br/>
<a id="pl.215.24"></a><var>215.24</var>disabilities, licensed under Minnesota Rules, parts 
         <statute_ref>4665.0100</statute_ref> to 
         <statute_ref>4665.9900</statute_ref>; housing <br/>
<a id="pl.215.25"></a><var>215.25</var>with services establishments required to be registered under chapter 144D; board <br/>
<a id="pl.215.26"></a><var>215.26</var>and lodging establishments providing only custodial services that are licensed under <br/>
<a id="pl.215.27"></a><var>215.27</var>chapter 157 and registered under section 
         <statute_ref>157.17</statute_ref> to provide supportive services or health <br/>
<a id="pl.215.28"></a><var>215.28</var>supervision services; adult foster homes as defined in Minnesota Rules, part 
         <statute_ref>9555.5105</statute_ref>; <br/>
<a id="pl.215.29"></a><var>215.29</var>day training and habilitation services for adults with developmental disabilities as defined <br/>
<a id="pl.215.30"></a><var>215.30</var>in section 
         <statute_ref>252.41, subdivision 3</statute_ref>; boarding care homes, as defined in Minnesota Rules, part <br/>
<statute_ref><a id="pl.215.31"></a><var>215.31</var>4655.0100
         </statute_ref>; and adult day care centers as defined in Minnesota Rules, part 
         <statute_ref>9555.9600</statute_ref>; <br/>
<a id="pl.215.32"></a><var>215.32</var>    (2) home health agencies as defined in Minnesota Rules, part 
         <statute_ref>9505.0175</statute_ref>, subpart <br/>
<a id="pl.215.33"></a><var>215.33</var>15; a person providing personal care services and supervision of personal care services <br/>
<a id="pl.215.34"></a><var>215.34</var>as defined in Minnesota Rules, part 
         <statute_ref>9505.0335</statute_ref>; a person providing private duty nursing <br/>
<a id="pl.216.1"></a><var>216.1</var>services as defined in Minnesota Rules, part 
         <statute_ref>9505.0360</statute_ref>; and home care providers required <br/>
<a id="pl.216.2"></a><var>216.2</var>to be licensed under chapter 144A;<br/>
<a id="pl.216.3"></a><var>216.3</var>    (3) a person who employs health care providers solely for the purpose of providing <br/>
<a id="pl.216.4"></a><var>216.4</var>patient services to its employees; and<br/>
<a id="pl.216.5"></a><var>216.5</var>    (4) an educational institution that employs health care providers solely for the <br/>
<a id="pl.216.6"></a><var>216.6</var>purpose of providing patient services to its students if the institution does not receive fee <br/>
<a id="pl.216.7"></a><var>216.7</var>for service payments or payments for extended coverage; and<br/>
<a id="pl.216.8"></a><var>216.8</var>    (5) a person who receives all payments for patient services from health care <br/>
<a id="pl.216.9"></a><var>216.9</var>providers, surgical centers, or hospitals for goods and services that are taxable to the <br/>
<a id="pl.216.10"></a><var>216.10</var>paying health care providers, surgical centers, or hospitals, as provided under section <br/>
<a id="pl.216.11"></a><var>216.11</var>295.53, subdivision 1, clause (3) or (4), or from a source of funds that is exempt from tax <br/>
<a id="pl.216.12"></a><var>216.12</var>under this chapter.<br/>
<a id="pl.216.13"></a><var>216.13</var><b>EFFECTIVE DATE.</b>Paragraph (b), clause (1), is effective the day following <br/>
<a id="pl.216.14"></a><var>216.14</var>final enactment. Paragraph (b), clause (5), is effective for payments received after June <br/>
<a id="pl.216.15"></a><var>216.15</var>30, 2008.<br/>
<br/>
<a id="bill.14.4.0"></a><a id="pl.216.16"></a><var>216.16</var>    Sec. 4. Minnesota Statutes 2006, section 295.52, subdivision 4, as amended by Laws <br/>
<a id="pl.216.17"></a><var>216.17</var>2008, chapter 154, article 14, section 5, is amended to read:<br/>
<a id="pl.216.18"></a><var>216.18</var>    Subd. 4.  <b>Use tax; </b><b>prescription</b><b> </b><b>legend</b><b>  drugs.</b> (a) A person that receives <br/>
<a id="pl.216.19"></a><var>216.19</var>prescription legend  drugs for resale or use in Minnesota, other than from a wholesale drug <br/>
<a id="pl.216.20"></a><var>216.20</var>distributor that is subject to tax under subdivision 3, is subject to a tax equal to the price <br/>
<a id="pl.216.21"></a><var>216.21</var>paid to the wholesale drug distributor for the legend drugs multiplied by the tax percentage <br/>
<a id="pl.216.22"></a><var>216.22</var>specified in this section. Liability for the tax is incurred when prescription legend  drugs <br/>
<a id="pl.216.23"></a><var>216.23</var>are received or delivered in Minnesota by the person. <br/>
<a id="pl.216.24"></a><var>216.24</var>    (b) A tax imposed under this subdivision does not apply to purchases by an <br/>
<a id="pl.216.25"></a><var>216.25</var>individual for personal consumption. <br/>
<a id="pl.216.26"></a><var>216.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.5.0"></a><a id="pl.216.27"></a><var>216.27</var>    Sec. 5. Minnesota Statutes 2006, section 296A.07, subdivision 4, is amended to read:<br/>
<a id="pl.216.28"></a><var>216.28</var>    Subd. 4. <b>Exemptions.</b> The provisions of subdivision 1 do not apply to gasoline or <br/>
<a id="pl.216.29"></a><var>216.29</var>denatured ethanol purchased by:<br/>
<a id="pl.216.30"></a><var>216.30</var>    (1) a transit system or transit provider receiving financial assistance or <br/>
<a id="pl.216.31"></a><var>216.31</var>reimbursement under section 
         <statute_ref>174.24</statute_ref>, 
         <statute_ref>256B.0625, subdivision 17</statute_ref>, or 
         <statute_ref>473.384</statute_ref>; or<br/>
<a id="pl.216.32"></a><var>216.32</var>    (2) an ambulance service licensed under chapter 144E; or<br/>
<a id="pl.216.33"></a><var>216.33</var>    (3) a licensed distributor to be delivered to a terminal for use in blending.<br/>
<a id="pl.217.1"></a><var>217.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.6.0"></a><a id="pl.217.2"></a><var>217.2</var>    Sec. 6. Minnesota Statutes 2006, section 296A.08, subdivision 3, is amended to read:<br/>
<a id="pl.217.3"></a><var>217.3</var>    Subd. 3. <b>Exemptions.</b> The provisions of subdivisions 1 and 2 do not apply to <br/>
<a id="pl.217.4"></a><var>217.4</var>special fuel or alternative fuels purchased by:<br/>
<a id="pl.217.5"></a><var>217.5</var>    (1) a transit system or transit provider receiving financial assistance or <br/>
<a id="pl.217.6"></a><var>217.6</var>reimbursement under section 
         <statute_ref>174.24</statute_ref>, 
         <statute_ref>256B.0625, subdivision 17</statute_ref>, or 
         <statute_ref>473.384</statute_ref>; or <br/>
<a id="pl.217.7"></a><var>217.7</var>    (2) an ambulance service licensed under chapter 144E; or<br/>
<a id="pl.217.8"></a><var>217.8</var>    (3) a licensed distributor to be delivered to a terminal for use in blending.<br/>
<a id="pl.217.9"></a><var>217.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.7.0"></a><a id="pl.217.10"></a><var>217.10</var>    Sec. 7. Minnesota Statutes 2006, section 297F.21, subdivision 1, is amended to read:<br/>
<a id="pl.217.11"></a><var>217.11</var>    Subdivision 1. <b>Contraband defined.</b> The following are declared to be contraband <br/>
<a id="pl.217.12"></a><var>217.12</var>and therefore subject to civil and criminal penalties under this chapter:<br/>
<a id="pl.217.13"></a><var>217.13</var>    (a) Cigarette packages which do not have stamps affixed to them as provided in this <br/>
<a id="pl.217.14"></a><var>217.14</var>chapter, including but not limited to (i) packages with illegible stamps and packages with <br/>
<a id="pl.217.15"></a><var>217.15</var>stamps that are not complete or whole even if the stamps are legible, and (ii) all devices <br/>
<a id="pl.217.16"></a><var>217.16</var>for the vending of cigarettes in which packages as defined in item (i) are found, including <br/>
<a id="pl.217.17"></a><var>217.17</var>all contents contained within the devices.<br/>
<a id="pl.217.18"></a><var>217.18</var>    (b) A device for the vending of cigarettes and all packages of cigarettes, where the <br/>
<a id="pl.217.19"></a><var>217.19</var>device does not afford at least partial visibility of contents. Where any package exposed <br/>
<a id="pl.217.20"></a><var>217.20</var>to view does not carry the stamp required by this chapter, it shall be presumed that all <br/>
<a id="pl.217.21"></a><var>217.21</var>packages contained in the device are unstamped and contraband.<br/>
<a id="pl.217.22"></a><var>217.22</var>    (c) A device for the vending of cigarettes to which the commissioner or authorized <br/>
<a id="pl.217.23"></a><var>217.23</var>agents have been denied access for the inspection of contents. In lieu of seizure, the <br/>
<a id="pl.217.24"></a><var>217.24</var>commissioner or an agent may seal the device to prevent its use until inspection of <br/>
<a id="pl.217.25"></a><var>217.25</var>contents is permitted.<br/>
<a id="pl.217.26"></a><var>217.26</var>    (d) A device for the vending of cigarettes which does not carry the name and address <br/>
<a id="pl.217.27"></a><var>217.27</var>of the owner, plainly marked and visible from the front of the machine.<br/>
<a id="pl.217.28"></a><var>217.28</var>    (e) A device including, but not limited to, motor vehicles, trailers, snowmobiles, <br/>
<a id="pl.217.29"></a><var>217.29</var>airplanes, and boats used with the knowledge of the owner or of a person operating with <br/>
<a id="pl.217.30"></a><var>217.30</var>the consent of the owner for the storage or transportation of more than 5,000 cigarettes <br/>
<a id="pl.217.31"></a><var>217.31</var>which are contraband under this subdivision. When cigarettes are being transported in <br/>
<a id="pl.217.32"></a><var>217.32</var>the course of interstate commerce, or are in movement from either a public warehouse to <br/>
<a id="pl.217.33"></a><var>217.33</var>a distributor upon orders from a manufacturer or distributor, or from one distributor to <br/>
<a id="pl.217.34"></a><var>217.34</var>another, the cigarettes are not contraband, notwithstanding the provisions of clause (a).<br/>
<a id="pl.218.1"></a><var>218.1</var>    (f) A device including, but not limited to, motor vehicles, trailers, snowmobiles, <br/>
<a id="pl.218.2"></a><var>218.2</var>airplanes, and boats used with the knowledge of the owner, or of a person operating with <br/>
<a id="pl.218.3"></a><var>218.3</var>the consent of the owner, for the storage or transportation of untaxed tobacco products <br/>
<a id="pl.218.4"></a><var>218.4</var>intended for sale in Minnesota other than those in the possession of a licensed distributor <br/>
<a id="pl.218.5"></a><var>218.5</var>on or before the due date for payment of the tax under section 
         <statute_ref>297F.09, subdivision 2</statute_ref>. <br/>
<a id="pl.218.6"></a><var>218.6</var>    (g) Cigarette packages or tobacco products obtained from an unlicensed seller.<br/>
<a id="pl.218.7"></a><var>218.7</var>    (h) Cigarette packages offered for sale or held as inventory in violation of section <br/>
<statute_ref><a id="pl.218.8"></a><var>218.8</var>297F.20, subdivision 7
         </statute_ref>. <br/>
<a id="pl.218.9"></a><var>218.9</var>    (i) Tobacco products on which the tax has not been paid by a licensed distributor.<br/>
<a id="pl.218.10"></a><var>218.10</var>    (j) Any cigarette packages or tobacco products offered for sale or held as inventory <br/>
<a id="pl.218.11"></a><var>218.11</var>for which there is not an invoice from a licensed seller as required under section 
         <statute_ref>297F.13, <br/>
<a id="pl.218.12"></a><var>218.12</var>subdivision 4
         </statute_ref>. <br/>
<a id="pl.218.13"></a><var>218.13</var>    (k) Cigarette packages which have been imported into the United States in violation <br/>
<a id="pl.218.14"></a><var>218.14</var>of United States Code, title 26, section 5754. All cigarettes held in violation of that section <br/>
<a id="pl.218.15"></a><var>218.15</var>shall be presumed to have entered the United States after December 31, 1999, in the <br/>
<a id="pl.218.16"></a><var>218.16</var>absence of proof to the contrary.<br/>
<a id="pl.218.17"></a><var>218.17</var>    (l) Cigarettes subject to forfeiture under section 299F.854, subdivision 5, and <br/>
<a id="pl.218.18"></a><var>218.18</var>cigarette packaging and markings, including the cigarettes contained therein, which do not <br/>
<a id="pl.218.19"></a><var>218.19</var>meet the requirements under section 299F.853, paragraph (a).<br/>
<a id="pl.218.20"></a><var>218.20</var><b>EFFECTIVE DATE.</b>Property added in paragraph (l) of this section is contraband <br/>
<a id="pl.218.21"></a><var>218.21</var>effective December 1, 2008.<br/>
<br/>
<a id="bill.14.8.0"></a><a id="pl.218.22"></a><var>218.22</var>    Sec. 8. Minnesota Statutes 2006, section 297I.05, subdivision 12, is amended to read:<br/>
<a id="pl.218.23"></a><var>218.23</var>    Subd. 12. <b>Other entities.</b> (a) A tax is imposed equal to two percent of:<br/>
<a id="pl.218.24"></a><var>218.24</var>    (1) gross premiums less return premiums written for risks resident or located in <br/>
<a id="pl.218.25"></a><var>218.25</var>Minnesota by a risk retention group;<br/>
<a id="pl.218.26"></a><var>218.26</var>    (2) gross premiums less return premiums received by an attorney in fact acting <br/>
<a id="pl.218.27"></a><var>218.27</var>in accordance with chapter 71A;<br/>
<a id="pl.218.28"></a><var>218.28</var>    (3) gross premiums less return premiums received pursuant to assigned risk policies <br/>
<a id="pl.218.29"></a><var>218.29</var>and contracts of coverage under chapter 79;<br/>
<a id="pl.218.30"></a><var>218.30</var>    (4) the direct funded premium received by the reinsurance association under section <br/>
<statute_ref><a id="pl.218.31"></a><var>218.31</var>79.34
         </statute_ref> from self-insurers approved under section 
         <statute_ref>176.181</statute_ref> and political subdivisions that <br/>
<a id="pl.218.32"></a><var>218.32</var>self-insure; and<br/>
<a id="pl.218.33"></a><var>218.33</var>    (5) gross premiums less return premiums received by a nonprofit health service plan <br/>
<a id="pl.218.34"></a><var>218.34</var>corporation authorized under chapter 62C; and<br/>
<a id="pl.219.1"></a><var>219.1</var>    (6) gross premiums less return premiums paid to an insurer other than a licensed <br/>
<a id="pl.219.2"></a><var>219.2</var>insurance company or a surplus lines licensee for coverage of risks resident or located in <br/>
<a id="pl.219.3"></a><var>219.3</var>Minnesota by a purchasing group or any members of the purchasing group to a broker or <br/>
<a id="pl.219.4"></a><var>219.4</var>agent for the purchasing group.<br/>
<a id="pl.219.5"></a><var>219.5</var>    (b) A tax is imposed on a joint self-insurance plan operating under chapter 60F. The <br/>
<a id="pl.219.6"></a><var>219.6</var>rate of tax is equal to two percent of the total amount of claims paid during the fund year, <br/>
<a id="pl.219.7"></a><var>219.7</var>with no deduction for claims wholly or partially reimbursed through stop-loss insurance.<br/>
<a id="pl.219.8"></a><var>219.8</var>    (c) A tax is imposed on a joint self-insurance plan operating under chapter 62H. <br/>
<a id="pl.219.9"></a><var>219.9</var>The rate of tax is equal to two percent of the total amount of claims paid during the <br/>
<a id="pl.219.10"></a><var>219.10</var>fund's fiscal year, with no deduction for claims wholly or partially reimbursed through <br/>
<a id="pl.219.11"></a><var>219.11</var>stop-loss insurance.<br/>
<a id="pl.219.12"></a><var>219.12</var>    (d) A tax is imposed equal to the tax imposed under section 
         <statute_ref>297I.05, subdivision 5</statute_ref>, <br/>
<a id="pl.219.13"></a><var>219.13</var>on the gross premiums less return premiums on all coverages received by an accountable <br/>
<a id="pl.219.14"></a><var>219.14</var>provider network or agents of an accountable provider network in Minnesota, in cash or <br/>
<a id="pl.219.15"></a><var>219.15</var>otherwise, during the year. <br/>
<a id="pl.219.16"></a><var>219.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.0.0"></a>

<a id="bill.15.1.0"></a><a id="pl.219.19"></a><var>219.19</var>    Section 1. Minnesota Statutes 2006, section 13.51, subdivision 3, is amended to read:<br/>
<a id="pl.219.20"></a><var>219.20</var>    Subd. 3. <b>Data on income of individuals.</b> Income information on individuals <br/>
<a id="pl.219.21"></a><var>219.21</var>collected and maintained by political subdivisions to determine eligibility of property for <br/>
<a id="pl.219.22"></a><var>219.22</var>class 4d under section 273.126 sections 273.128
<statute_ref></statute_ref> and 
         <statute_ref>273.13</statute_ref>, is private data on individuals <br/>
<a id="pl.219.23"></a><var>219.23</var>as defined in section 
         <statute_ref>13.02, subdivision 12</statute_ref>. <br/>
<a id="pl.219.24"></a><var>219.24</var><b>EFFECTIVE DATE.</b>This section is effective for data collected or maintained by <br/>
<a id="pl.219.25"></a><var>219.25</var>political subdivisions beginning the day following final enactment.<br/>
<br/>
<a id="bill.15.2.0"></a><a id="pl.219.26"></a><var>219.26</var>    Sec. 2. Minnesota Statutes 2006, section 13.585, subdivision 5, is amended to read:<br/>
<a id="pl.219.27"></a><var>219.27</var>    Subd. 5. <b>Private data on individuals.</b> Income information on individuals collected <br/>
<a id="pl.219.28"></a><var>219.28</var>and maintained by a housing agency to determine eligibility of property for class 4d <br/>
<a id="pl.219.29"></a><var>219.29</var>under sections 
         <statute_ref>273.126 273.128</statute_ref> and 
         <statute_ref>273.13</statute_ref>, is private data on individuals as defined in <br/>
<a id="pl.219.30"></a><var>219.30</var>section 
         <statute_ref>13.02, subdivision 12</statute_ref>. The data may be disclosed to the county and local assessors <br/>
<a id="pl.219.31"></a><var>219.31</var>responsible for determining eligibility of the property for classification 4d. <br/>
<a id="pl.219.32"></a><var>219.32</var><b>EFFECTIVE DATE.</b>This section is effective for data collected or maintained by a <br/>
<a id="pl.219.33"></a><var>219.33</var>housing agency beginning the day following final enactment.<br/>
<br/>
<a id="bill.15.3.0"></a><a id="pl.220.1"></a><var>220.1</var>    Sec. 3. Minnesota Statutes 2006, section 272.02, subdivision 38, is amended to read:<br/>
<a id="pl.220.2"></a><var>220.2</var>    Subd. 38. <b>Conversion to exempt or taxable uses.</b> (a) Any property, except <br/>
<a id="pl.220.3"></a><var>220.3</var>property taxed as personal property under section 273.125, that is exempt from taxation on <br/>
<a id="pl.220.4"></a><var>220.4</var>January 2 of any year which, due to sale or other reason, loses its exemption prior to July 1 <br/>
<a id="pl.220.5"></a><var>220.5</var>of any year, shall be placed on the current assessment rolls for that year.<br/>
<a id="pl.220.6"></a><var>220.6</var>    The valuation shall be determined with respect to its value on January 2 of such <br/>
<a id="pl.220.7"></a><var>220.7</var>year. The classification shall be based upon the use to which the property was put by the <br/>
<a id="pl.220.8"></a><var>220.8</var>purchaser, or in the event the purchaser has not utilized the property by July 1, the intended <br/>
<a id="pl.220.9"></a><var>220.9</var>use of the property, determined by the county assessor, based upon all relevant facts.<br/>
<a id="pl.220.10"></a><var>220.10</var>    (b) Property, except property taxed as personal property under section 273.125, that <br/>
<a id="pl.220.11"></a><var>220.11</var>is subject to tax on January 2 that is acquired before July 1 of the year is exempt for that <br/>
<a id="pl.220.12"></a><var>220.12</var>assessment year if the property is to be used for an exempt purpose under subdivisions 2 <br/>
<a id="pl.220.13"></a><var>220.13</var>to 8.<br/>
<a id="pl.220.14"></a><var>220.14</var>    (c) Property which forfeits to the state for nonpayment of real estate taxes on or <br/>
<a id="pl.220.15"></a><var>220.15</var>before December 31 in an assessment year, shall be removed from the assessment rolls for <br/>
<a id="pl.220.16"></a><var>220.16</var>that assessment year. Forfeited property that is repurchased, or sold at a public or private <br/>
<a id="pl.220.17"></a><var>220.17</var>sale, on or before December 31 of an assessment year shall be placed on the assessment <br/>
<a id="pl.220.18"></a><var>220.18</var>rolls for that year's assessment.<br/>
<a id="pl.220.19"></a><var>220.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.4.0"></a><a id="pl.220.20"></a><var>220.20</var>    Sec. 4. Minnesota Statutes 2007 Supplement, section 273.1231, subdivision 7, is <br/>
<a id="pl.220.21"></a><var>220.21</var>amended to read:<br/>
<a id="pl.220.22"></a><var>220.22</var>    Subd. 7.  <b>Reassessed market value. </b> "Reassessed market value" means the taxable <br/>
<a id="pl.220.23"></a><var>220.23</var>market value of the property established for the January 2 assessment in the year that the <br/>
<a id="pl.220.24"></a><var>220.24</var>disaster or destruction occurs, as adjusted by the county assessor or the commissioner of <br/>
<a id="pl.220.25"></a><var>220.25</var>revenue to reflect the loss in market value caused by the damage. As soon as practical, the <br/>
<a id="pl.220.26"></a><var>220.26</var>assessor or commissioner shall report the reassessed value to the county auditor. <br/>
<a id="pl.220.27"></a><var>220.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.5.0"></a><a id="pl.220.28"></a><var>220.28</var>    Sec. 5. Minnesota Statutes 2007 Supplement, section 273.1231, is amended by adding <br/>
<a id="pl.220.29"></a><var>220.29</var>a subdivision to read:<br/>
<a id="pl.220.30"></a><var>220.30</var>    Subd. 8. <b>Utility property.</b> "Utility property" means property appraised and <br/>
<a id="pl.220.31"></a><var>220.31</var>classified for tax purposes by the commissioner of revenue under sections 273.33 to <br/>
<a id="pl.220.32"></a><var>220.32</var>273.3711.<br/>
<a id="pl.220.33"></a><var>220.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.6.0"></a><a id="pl.221.1"></a><var>221.1</var>    Sec. 6. Minnesota Statutes 2007 Supplement, section 273.1232, subdivision 1, is <br/>
<a id="pl.221.2"></a><var>221.2</var>amended to read:<br/>
<a id="pl.221.3"></a><var>221.3</var>    Subdivision 1.  <b>Reassessments required. </b> For the purposes of sections 
         <statute_ref>273.1231 <br/>
</statute_ref><a id="pl.221.4"></a><var>221.4</var>to 
         <statute_ref>273.1235</statute_ref>, the county assessor must reassess all damaged property in a disaster or <br/>
<a id="pl.221.5"></a><var>221.5</var>emergency area, and the county assessor or except that the commissioner of revenue <br/>
<a id="pl.221.6"></a><var>221.6</var>as appropriate shall reassess all property for which an application is submitted to the <br/>
<a id="pl.221.7"></a><var>221.7</var>commissioner under section 
         <statute_ref>273.1233</statute_ref> or 
         <statute_ref>273.1235</statute_ref>. As soon as practical, the assessor or <br/>
<a id="pl.221.8"></a><var>221.8</var>commissioner of revenue must report the reassessed value to the county auditor. <br/>
<a id="pl.221.9"></a><var>221.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.7.0"></a><a id="pl.221.10"></a><var>221.10</var>    Sec. 7. Minnesota Statutes 2007 Supplement, section 273.1233, subdivision 1, is <br/>
<a id="pl.221.11"></a><var>221.11</var>amended to read:<br/>
<a id="pl.221.12"></a><var>221.12</var>    Subdivision 1.  <b>Abatement authorization. </b> (a) Notwithstanding section 
         <statute_ref>375.192</statute_ref>, <br/>
<a id="pl.221.13"></a><var>221.13</var>a county board may grant an abatement of net tax for homestead and nonhomestead <br/>
<a id="pl.221.14"></a><var>221.14</var>property under the provisions of this paragraph for taxes payable in the year in which <br/>
<a id="pl.221.15"></a><var>221.15</var>the destruction occurs if: <br/>
<a id="pl.221.16"></a><var>221.16</var>    (1) the owner submits a written application to the county assessor as soon as <br/>
<a id="pl.221.17"></a><var>221.17</var>practical after the damage has occurred; <br/>
<a id="pl.221.18"></a><var>221.18</var>    (2) the owner submits a written application to the county board as soon as practical <br/>
<a id="pl.221.19"></a><var>221.19</var>after the damage has occurred; and <br/>
<a id="pl.221.20"></a><var>221.20</var>    (3) the county assessor determines that 50 percent or more of a homestead dwelling <br/>
<a id="pl.221.21"></a><var>221.21</var>or other building has been (i) unintentionally or accidentally destroyed, or (ii) destroyed <br/>
<a id="pl.221.22"></a><var>221.22</var>by arson or vandalism by someone other than the owner. <br/>
<a id="pl.221.23"></a><var>221.23</var>    Abatements granted under this paragraph are not subject to approval by the <br/>
<a id="pl.221.24"></a><var>221.24</var>commissioner of revenue. <br/>
<a id="pl.221.25"></a><var>221.25</var>    (b) Notwithstanding sections 
         <statute_ref>270C.86</statute_ref> and 
         <statute_ref>375.192</statute_ref>, the commissioner of revenue <br/>
<a id="pl.221.26"></a><var>221.26</var>may grant an abatement of net tax for utility property that the commissioner is required by <br/>
<a id="pl.221.27"></a><var>221.27</var>law to appraise for taxes payable in the year in which the destruction occurs if: <br/>
<a id="pl.221.28"></a><var>221.28</var>    (1) the owner submits a written application to the commissioner as soon as practical <br/>
<a id="pl.221.29"></a><var>221.29</var>after the damage has occurred; <br/>
<a id="pl.221.30"></a><var>221.30</var>    (2) the owner forwards a copy of the written application to the county board as soon <br/>
<a id="pl.221.31"></a><var>221.31</var>as practical after the damage has occurred; and <br/>
<a id="pl.221.32"></a><var>221.32</var>    (3) the commissioner determines that 50 percent or more of the property has been <br/>
<a id="pl.221.33"></a><var>221.33</var>(i) unintentionally or accidentally destroyed, or (ii) destroyed by arson or vandalism by <br/>
<a id="pl.221.34"></a><var>221.34</var>someone other than the owner. <br/>
<a id="pl.222.1"></a><var>222.1</var>    Abatements granted under this paragraph are not subject to approval by the county <br/>
<a id="pl.222.2"></a><var>222.2</var>board of the county where the property is located. <br/>
<a id="pl.222.3"></a><var>222.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.8.0"></a><a id="pl.222.4"></a><var>222.4</var>    Sec. 8. Minnesota Statutes 2007 Supplement, section 273.1233, subdivision 3, is <br/>
<a id="pl.222.5"></a><var>222.5</var>amended to read:<br/>
<a id="pl.222.6"></a><var>222.6</var>    Subd. 3.  <b>Reimbursement, levy, and appropriation. </b> (a) If the destruction occurs as <br/>
<a id="pl.222.7"></a><var>222.7</var>a result of a disaster or emergency and the property is located in a disaster or emergency <br/>
<a id="pl.222.8"></a><var>222.8</var>area, the county auditor shall certify the abatements granted under this section to the <br/>
<a id="pl.222.9"></a><var>222.9</var>commissioner of revenue for reimbursement to each taxing jurisdiction in which the <br/>
<a id="pl.222.10"></a><var>222.10</var>damaged property is located. The commissioner shall make the payments to the taxing <br/>
<a id="pl.222.11"></a><var>222.11</var>jurisdictions containing the property, other than school districts and the state, at the time <br/>
<a id="pl.222.12"></a><var>222.12</var>distributions are made under section 
         <statute_ref>473H.10, subdivision 3</statute_ref>. Reimbursements to school <br/>
<a id="pl.222.13"></a><var>222.13</var>districts shall be made as provided in section 
         <statute_ref>273.1392</statute_ref>. No reimbursement is to be paid <br/>
<a id="pl.222.14"></a><var>222.14</var>to the state treasury. <br/>
<a id="pl.222.15"></a><var>222.15</var>    (b) Local taxing authorities may levy in the following year the amount of <br/>
<a id="pl.222.16"></a><var>222.16</var>unreimbursed tax dollars lost as a result of the reductions granted pursuant to this <br/>
<a id="pl.222.17"></a><var>222.17</var>subdivision section and sections 273.1234 and 273.1235 outside of any statutory <br/>
<a id="pl.222.18"></a><var>222.18</var>restriction as to levy amount or tax rate. <br/>
<a id="pl.222.19"></a><var>222.19</var>    (c) There is annually appropriated from the general fund to the commissioner of <br/>
<a id="pl.222.20"></a><var>222.20</var>revenue an amount necessary to make the payments required by this section. <br/>
<a id="pl.222.21"></a><var>222.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.9.0"></a><a id="pl.222.22"></a><var>222.22</var>    Sec. 9. Minnesota Statutes 2007 Supplement, section 273.1234, is amended to read:<br/>
<a id="pl.222.23"></a><var>222.23</var><b>273.1234 TAX RELIEF FOR DESTROYED PROPERTY; HOMESTEAD </b><br/>
<a id="pl.222.24"></a><var>222.24</var><b>AND DISASTER CREDITS. </b><br/>
<a id="pl.222.25"></a><var>222.25</var>    Subdivision 1.  <b>Credit provided. </b> The county auditor shall compute a credit for taxes <br/>
<a id="pl.222.26"></a><var>222.26</var>payable in the year following the year in which the damage or destruction occurred for <br/>
<a id="pl.222.27"></a><var>222.27</var>each reassessed homestead property within the county that is located within a disaster <br/>
<a id="pl.222.28"></a><var>222.28</var>or emergency area. The credit is equal to the difference in the net tax on the property <br/>
<a id="pl.222.29"></a><var>222.29</var>computed using the market value of the property established for the January 2 assessment <br/>
<a id="pl.222.30"></a><var>222.30</var>in the year in which the damage occurred and as computed using the reassessed value. <br/>
<a id="pl.222.31"></a><var>222.31</var>    Subd. 2.  <b>Credit reimbursements. </b> The county auditor shall certify the credits <br/>
<a id="pl.222.32"></a><var>222.32</var>granted under this section to the commissioner of revenue for reimbursement to each <br/>
<a id="pl.222.33"></a><var>222.33</var>taxing jurisdiction in which the damaged property is located. The commissioner shall <br/>
<a id="pl.223.1"></a><var>223.1</var>make the payments to the taxing jurisdictions containing the property, other than <br/>
<a id="pl.223.2"></a><var>223.2</var>school districts and the state, at the time distributions are made under section 
         <statute_ref>473H.10</statute_ref>, <br/>
<a id="pl.223.3"></a><var>223.3</var>subdivision 3. Reimbursements to school districts shall be made as provided in section <br/>
<statute_ref><a id="pl.223.4"></a><var>223.4</var>273.1392
         </statute_ref>. No reimbursement is to be paid to the state treasury. <br/>
<a id="pl.223.5"></a><var>223.5</var>    Subd. 3.  <b>Appropriation. </b> There is annually appropriated from the general fund <br/>
<a id="pl.223.6"></a><var>223.6</var>to the commissioner of revenue an amount necessary to make the payments required <br/>
<a id="pl.223.7"></a><var>223.7</var>by this section. <br/>
<a id="pl.223.8"></a><var>223.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.10.0"></a><a id="pl.223.9"></a><var>223.9</var>    Sec. 10. Minnesota Statutes 2007 Supplement, section 273.1235, subdivision 1, <br/>
<a id="pl.223.10"></a><var>223.10</var>is amended to read:<br/>
<a id="pl.223.11"></a><var>223.11</var>    Subdivision 1.  <b>Credit provided. </b> The county board may grant a credit for taxes <br/>
<a id="pl.223.12"></a><var>223.12</var>payable in the year following the year in which the damage or destruction occurred <br/>
<a id="pl.223.13"></a><var>223.13</var>for: (1) homestead properties property that meets all the requirements under section <br/>
<a id="pl.223.14"></a><var>223.14</var>273.1233, subdivision 1, paragraph (a), but that do does not qualify for a credit under <br/>
<a id="pl.223.15"></a><var>223.15</var>section 
         <statute_ref>273.1234</statute_ref>, except that an application need only be submitted by the end of the <br/>
<a id="pl.223.16"></a><var>223.16</var>year in which the damage occurred; and (2) nonhomestead and utility property meeting <br/>
<a id="pl.223.17"></a><var>223.17</var>the requirements that meets all the requirements under section 
         <statute_ref>273.1233</statute_ref>, subdivision 1, <br/>
<a id="pl.223.18"></a><var>223.18</var>paragraph (b), except that an application need only be submitted by the end of the year <br/>
<a id="pl.223.19"></a><var>223.19</var>in which the damage occurred. <br/>
<a id="pl.223.20"></a><var>223.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.11.0"></a><a id="pl.223.21"></a><var>223.21</var>    Sec. 11. Minnesota Statutes 2007 Supplement, section 273.1235, subdivision 3, <br/>
<a id="pl.223.22"></a><var>223.22</var>is amended to read:<br/>
<a id="pl.223.23"></a><var>223.23</var>    Subd. 3.  <b>Credit reimbursements. </b> The county auditor shall certify the credits <br/>
<a id="pl.223.24"></a><var>223.24</var>granted under this section for property within a disaster or emergency area to the <br/>
<a id="pl.223.25"></a><var>223.25</var>commissioner of revenue for reimbursement to each taxing jurisdiction in which the <br/>
<a id="pl.223.26"></a><var>223.26</var>damaged property is located. The commissioner shall make the payments to the taxing <br/>
<a id="pl.223.27"></a><var>223.27</var>jurisdictions containing the property, other than school districts and the state, at the time <br/>
<a id="pl.223.28"></a><var>223.28</var>distributions are made under section 
         <statute_ref>473H.10, subdivision 3</statute_ref>. Reimbursements to school <br/>
<a id="pl.223.29"></a><var>223.29</var>districts shall be made as provided in section 
         <statute_ref>273.1392</statute_ref>. No reimbursement is to be paid <br/>
<a id="pl.223.30"></a><var>223.30</var>to the state treasury. No reimbursement is to be made for credits to property not located <br/>
<a id="pl.223.31"></a><var>223.31</var>in a disaster or emergency area. <br/>
<a id="pl.223.32"></a><var>223.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.12.0"></a><a id="pl.224.1"></a><var>224.1</var>    Sec. 12. Minnesota Statutes 2006, section 273.124, subdivision 13, as amended by <br/>
<a id="pl.224.2"></a><var>224.2</var>Laws 2008, chapter 154, article 13, section 29, is amended to read:<br/>
<a id="pl.224.3"></a><var>224.3</var>    Subd. 13.  <b>Homestead application.</b> (a) A person who meets the homestead <br/>
<a id="pl.224.4"></a><var>224.4</var>requirements under subdivision 1 must file a homestead application with the county <br/>
<a id="pl.224.5"></a><var>224.5</var>assessor to initially obtain homestead classification. <br/>
<a id="pl.224.6"></a><var>224.6</var>    (b) The format and contents of a uniform homestead application shall be prescribed <br/>
<a id="pl.224.7"></a><var>224.7</var>by the commissioner of revenue. The application must clearly inform the taxpayer that <br/>
<a id="pl.224.8"></a><var>224.8</var>this application must be signed by all owners who occupy the property or by the qualifying <br/>
<a id="pl.224.9"></a><var>224.9</var>relative and returned to the county assessor in order for the property to receive homestead <br/>
<a id="pl.224.10"></a><var>224.10</var>treatment. <br/>
<a id="pl.224.11"></a><var>224.11</var>    (c) Every property owner applying for homestead classification must furnish to the <br/>
<a id="pl.224.12"></a><var>224.12</var>county assessor the Social Security number of each occupant who is listed as an owner <br/>
<a id="pl.224.13"></a><var>224.13</var>of the property on the deed of record, the name and address of each owner who does not <br/>
<a id="pl.224.14"></a><var>224.14</var>occupy the property, and the name and Social Security number of each owner's spouse who <br/>
<a id="pl.224.15"></a><var>224.15</var>occupies the property. The application must be signed by each owner who occupies the <br/>
<a id="pl.224.16"></a><var>224.16</var>property and by each owner's spouse who occupies the property, or, in the case of property <br/>
<a id="pl.224.17"></a><var>224.17</var>that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative. <br/>
<a id="pl.224.18"></a><var>224.18</var>    If a property owner occupies a homestead, the property owner's spouse may not <br/>
<a id="pl.224.19"></a><var>224.19</var>claim another property as a homestead unless the property owner and the property owner's <br/>
<a id="pl.224.20"></a><var>224.20</var>spouse file with the assessor an affidavit or other proof required by the assessor stating that <br/>
<a id="pl.224.21"></a><var>224.21</var>the property qualifies as a homestead under subdivision 1, paragraph (e). <br/>
<a id="pl.224.22"></a><var>224.22</var>    Owners or spouses occupying residences owned by their spouses and previously <br/>
<a id="pl.224.23"></a><var>224.23</var>occupied with the other spouse, either of whom fail to include the other spouse's name <br/>
<a id="pl.224.24"></a><var>224.24</var>and Social Security number on the homestead application or provide the affidavits or <br/>
<a id="pl.224.25"></a><var>224.25</var>other proof requested, will be deemed to have elected to receive only partial homestead <br/>
<a id="pl.224.26"></a><var>224.26</var>treatment of their residence. The remainder of the residence will be classified as <br/>
<a id="pl.224.27"></a><var>224.27</var>nonhomestead residential. When an owner or spouse's name and Social Security number <br/>
<a id="pl.224.28"></a><var>224.28</var>appear on homestead applications for two separate residences and only one application is <br/>
<a id="pl.224.29"></a><var>224.29</var>signed, the owner or spouse will be deemed to have elected to homestead the residence for <br/>
<a id="pl.224.30"></a><var>224.30</var>which the application was signed. <br/>
<a id="pl.224.31"></a><var>224.31</var>    The Social Security numbers, state or federal tax returns or tax return information, <br/>
<a id="pl.224.32"></a><var>224.32</var>including the federal income tax schedule F required by this section, or affidavits or other <br/>
<a id="pl.224.33"></a><var>224.33</var>proofs of the property owners and spouses, and the federal income tax schedule F required <br/>
<a id="pl.224.34"></a><var>224.34</var>by this section, submitted under this or another section to support a claim for a property <br/>
<a id="pl.224.35"></a><var>224.35</var>tax homestead classification are private data on individuals as defined by section 
         <statute_ref>13.02, <br/>
<a id="pl.224.36"></a><var>224.36</var>subdivision 12
         </statute_ref>, but, notwithstanding that section, the private data may be disclosed to the <br/>
<a id="pl.225.1"></a><var>225.1</var>commissioner of revenue, or, for purposes of proceeding under the Revenue Recapture <br/>
<a id="pl.225.2"></a><var>225.2</var>Act to recover personal property taxes owing, to the county treasurer. <br/>
<a id="pl.225.3"></a><var>225.3</var>    (d) If residential real estate is occupied and used for purposes of a homestead by a <br/>
<a id="pl.225.4"></a><var>225.4</var>relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in <br/>
<a id="pl.225.5"></a><var>225.5</var>order for the property to receive homestead status, a homestead application must be filed <br/>
<a id="pl.225.6"></a><var>225.6</var>with the assessor. The Social Security number of each relative and spouse of a relative <br/>
<a id="pl.225.7"></a><var>225.7</var>occupying the property shall be required on the homestead application filed under this <br/>
<a id="pl.225.8"></a><var>225.8</var>subdivision. If a different relative of the owner subsequently occupies the property, the <br/>
<a id="pl.225.9"></a><var>225.9</var>owner of the property must notify the assessor within 30 days of the change in occupancy. <br/>
<a id="pl.225.10"></a><var>225.10</var>The Social Security number of a relative or relative's spouse occupying the property <br/>
<a id="pl.225.11"></a><var>225.11</var>is private data on individuals as defined by section 
         <statute_ref>13.02, subdivision 12</statute_ref>, but may be <br/>
<a id="pl.225.12"></a><var>225.12</var>disclosed to the commissioner of revenue, or, for the purposes of proceeding under the <br/>
<a id="pl.225.13"></a><var>225.13</var>Revenue Recapture Act to recover personal property taxes owing, to the county treasurer. <br/>
<a id="pl.225.14"></a><var>225.14</var>    (e) The homestead application shall also notify the property owners that the <br/>
<a id="pl.225.15"></a><var>225.15</var>application filed under this section will not be mailed annually and that if the property <br/>
<a id="pl.225.16"></a><var>225.16</var>is granted homestead status for any assessment year, that same property shall remain <br/>
<a id="pl.225.17"></a><var>225.17</var>classified as homestead until the property is sold or transferred to another person, or <br/>
<a id="pl.225.18"></a><var>225.18</var>the owners, the spouse of the owner, or the relatives no longer use the property as their <br/>
<a id="pl.225.19"></a><var>225.19</var>homestead. Upon the sale or transfer of the homestead property, a certificate of value must <br/>
<a id="pl.225.20"></a><var>225.20</var>be timely filed with the county auditor as provided under section 
         <statute_ref>272.115</statute_ref>. Failure to <br/>
<a id="pl.225.21"></a><var>225.21</var>notify the assessor within 30 days that the property has been sold, transferred, or that the <br/>
<a id="pl.225.22"></a><var>225.22</var>owner, the spouse of the owner, or the relative is no longer occupying the property as a <br/>
<a id="pl.225.23"></a><var>225.23</var>homestead, shall result in the penalty provided under this subdivision and the property <br/>
<a id="pl.225.24"></a><var>225.24</var>will lose its current homestead status. <br/>
<a id="pl.225.25"></a><var>225.25</var>    (f) If the homestead application is not returned within 30 days, the county will send a <br/>
<a id="pl.225.26"></a><var>225.26</var>second application to the present owners of record. The notice of proposed property taxes <br/>
<a id="pl.225.27"></a><var>225.27</var>prepared under section 
         <statute_ref>275.065, subdivision 3</statute_ref>, shall reflect the property's classification. If <br/>
<a id="pl.225.28"></a><var>225.28</var>a homestead application has not been filed with the county by December 15, the assessor <br/>
<a id="pl.225.29"></a><var>225.29</var>shall classify the property as nonhomestead for the current assessment year for taxes <br/>
<a id="pl.225.30"></a><var>225.30</var>payable in the following year, provided that the owner may be entitled to receive the <br/>
<a id="pl.225.31"></a><var>225.31</var>homestead classification by proper application under section 
         <statute_ref>375.192</statute_ref>. <br/>
<a id="pl.225.32"></a><var>225.32</var>    (g) At the request of the commissioner, each county must give the commissioner a <br/>
<a id="pl.225.33"></a><var>225.33</var>list that includes the name and Social Security number of each occupant of homestead <br/>
<a id="pl.225.34"></a><var>225.34</var>property who is the property owner, property owner's spouse, qualifying relative of a <br/>
<a id="pl.225.35"></a><var>225.35</var>property owner, or a spouse of a qualifying relative. The commissioner shall use the <br/>
<a id="pl.226.1"></a><var>226.1</var>information provided on the lists as appropriate under the law, including for the detection <br/>
<a id="pl.226.2"></a><var>226.2</var>of improper claims by owners, or relatives of owners, under chapter 290A. <br/>
<a id="pl.226.3"></a><var>226.3</var>    (h) If the commissioner finds that a property owner may be claiming a fraudulent <br/>
<a id="pl.226.4"></a><var>226.4</var>homestead, the commissioner shall notify the appropriate counties. Within 90 days of <br/>
<a id="pl.226.5"></a><var>226.5</var>the notification, the county assessor shall investigate to determine if the homestead <br/>
<a id="pl.226.6"></a><var>226.6</var>classification was properly claimed. If the property owner does not qualify, the county <br/>
<a id="pl.226.7"></a><var>226.7</var>assessor shall notify the county auditor who will determine the amount of homestead <br/>
<a id="pl.226.8"></a><var>226.8</var>benefits that had been improperly allowed. For the purpose of this section, "homestead <br/>
<a id="pl.226.9"></a><var>226.9</var>benefits" means the tax reduction resulting from the classification as a homestead under <br/>
<a id="pl.226.10"></a><var>226.10</var>section 
         <statute_ref>273.13</statute_ref>, the taconite homestead credit under section 
         <statute_ref>273.135</statute_ref>, the residential <br/>
<a id="pl.226.11"></a><var>226.11</var>homestead and agricultural homestead credits under section 
         <statute_ref>273.1384</statute_ref>, and the <br/>
<a id="pl.226.12"></a><var>226.12</var>supplemental homestead credit under section 
         <statute_ref>273.1391</statute_ref>. <br/>
<a id="pl.226.13"></a><var>226.13</var>    The county auditor shall send a notice to the person who owned the affected property <br/>
<a id="pl.226.14"></a><var>226.14</var>at the time the homestead application related to the improper homestead was filed, <br/>
<a id="pl.226.15"></a><var>226.15</var>demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent <br/>
<a id="pl.226.16"></a><var>226.16</var>of the homestead benefits. The person notified may appeal the county's determination <br/>
<a id="pl.226.17"></a><var>226.17</var>by serving copies of a petition for review with county officials as provided in section <br/>
<statute_ref><a id="pl.226.18"></a><var>226.18</var>278.01
         </statute_ref> and filing proof of service as provided in section 
         <statute_ref>278.01</statute_ref> with the Minnesota Tax <br/>
<a id="pl.226.19"></a><var>226.19</var>Court within 60 days of the date of the notice from the county. Procedurally, the appeal <br/>
<a id="pl.226.20"></a><var>226.20</var>is governed by the provisions in chapter 271 which apply to the appeal of a property tax <br/>
<a id="pl.226.21"></a><var>226.21</var>assessment or levy, but without requiring any prepayment of the amount in controversy. If <br/>
<a id="pl.226.22"></a><var>226.22</var>the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal <br/>
<a id="pl.226.23"></a><var>226.23</var>has been filed, the county auditor shall certify the amount of taxes and penalty to the county <br/>
<a id="pl.226.24"></a><var>226.24</var>treasurer. The county treasurer will add interest to the unpaid homestead benefits and <br/>
<a id="pl.226.25"></a><var>226.25</var>penalty amounts at the rate provided in section 
         <statute_ref>279.03</statute_ref> for real property taxes becoming <br/>
<a id="pl.226.26"></a><var>226.26</var>delinquent in the calendar year during which the amount remains unpaid. Interest may be <br/>
<a id="pl.226.27"></a><var>226.27</var>assessed for the period beginning 60 days after demand for payment was made. <br/>
<a id="pl.226.28"></a><var>226.28</var>    If the person notified is the current owner of the property, the treasurer may add the <br/>
<a id="pl.226.29"></a><var>226.29</var>total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes <br/>
<a id="pl.226.30"></a><var>226.30</var>otherwise payable on the property by including the amounts on the property tax statements <br/>
<a id="pl.226.31"></a><var>226.31</var>under section 
         <statute_ref>276.04, subdivision 3</statute_ref>. The amounts added under this paragraph to the ad <br/>
<a id="pl.226.32"></a><var>226.32</var>valorem taxes shall include interest accrued through December 31 of the year preceding <br/>
<a id="pl.226.33"></a><var>226.33</var>the taxes payable year for which the amounts are first added. These amounts, when added <br/>
<a id="pl.226.34"></a><var>226.34</var>to the property tax statement, become subject to all the laws for the enforcement of real or <br/>
<a id="pl.226.35"></a><var>226.35</var>personal property taxes for that year, and for any subsequent year. <br/>
<a id="pl.227.1"></a><var>227.1</var>    If the person notified is not the current owner of the property, the treasurer may <br/>
<a id="pl.227.2"></a><var>227.2</var>collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of <br/>
<a id="pl.227.3"></a><var>227.3</var>the powers granted in sections 
         <statute_ref>277.20</statute_ref> and 
         <statute_ref>277.21</statute_ref> without exclusion, to enforce payment <br/>
<a id="pl.227.4"></a><var>227.4</var>of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent <br/>
<a id="pl.227.5"></a><var>227.5</var>tax obligations of the person who owned the property at the time the application related <br/>
<a id="pl.227.6"></a><var>227.6</var>to the improperly allowed homestead was filed. The treasurer may relieve a prior owner <br/>
<a id="pl.227.7"></a><var>227.7</var>of personal liability for the homestead benefits, penalty, interest, and costs, and instead <br/>
<a id="pl.227.8"></a><var>227.8</var>extend those amounts on the tax lists against the property as provided in this paragraph <br/>
<a id="pl.227.9"></a><var>227.9</var>to the extent that the current owner agrees in writing. On all demands, billings, property <br/>
<a id="pl.227.10"></a><var>227.10</var>tax statements, and related correspondence, the county must list and state separately the <br/>
<a id="pl.227.11"></a><var>227.11</var>amounts of homestead benefits, penalty, interest and costs being demanded, billed or <br/>
<a id="pl.227.12"></a><var>227.12</var>assessed. <br/>
<a id="pl.227.13"></a><var>227.13</var>    (i) Any amount of homestead benefits recovered by the county from the property <br/>
<a id="pl.227.14"></a><var>227.14</var>owner shall be distributed to the county, city or town, and school district where the <br/>
<a id="pl.227.15"></a><var>227.15</var>property is located in the same proportion that each taxing district's levy was to the total <br/>
<a id="pl.227.16"></a><var>227.16</var>of the three taxing districts' levy for the current year. Any amount recovered attributable <br/>
<a id="pl.227.17"></a><var>227.17</var>to taconite homestead credit shall be transmitted to the St. Louis County auditor to be <br/>
<a id="pl.227.18"></a><var>227.18</var>deposited in the taconite property tax relief account. Any amount recovered that is <br/>
<a id="pl.227.19"></a><var>227.19</var>attributable to supplemental homestead credit is to be transmitted to the commissioner of <br/>
<a id="pl.227.20"></a><var>227.20</var>revenue for deposit in the general fund of the state treasury. The total amount of penalty <br/>
<a id="pl.227.21"></a><var>227.21</var>collected must be deposited in the county general fund. <br/>
<a id="pl.227.22"></a><var>227.22</var>    (j) If a property owner has applied for more than one homestead and the county <br/>
<a id="pl.227.23"></a><var>227.23</var>assessors cannot determine which property should be classified as homestead, the county <br/>
<a id="pl.227.24"></a><var>227.24</var>assessors will refer the information to the commissioner. The commissioner shall make <br/>
<a id="pl.227.25"></a><var>227.25</var>the determination and notify the counties within 60 days. <br/>
<a id="pl.227.26"></a><var>227.26</var>    (k) In addition to lists of homestead properties, the commissioner may ask the <br/>
<a id="pl.227.27"></a><var>227.27</var>counties to furnish lists of all properties and the record owners. The Social Security <br/>
<a id="pl.227.28"></a><var>227.28</var>numbers and federal identification numbers that are maintained by a county or city <br/>
<a id="pl.227.29"></a><var>227.29</var>assessor for property tax administration purposes, and that may appear on the lists retain <br/>
<a id="pl.227.30"></a><var>227.30</var>their classification as private or nonpublic data; but may be viewed, accessed, and used by <br/>
<a id="pl.227.31"></a><var>227.31</var>the county auditor or treasurer of the same county for the limited purpose of assisting the <br/>
<a id="pl.227.32"></a><var>227.32</var>commissioner in the preparation of microdata samples under section 
         <statute_ref>270C.12</statute_ref>. <br/>
<a id="pl.227.33"></a><var>227.33</var>    (l) On or before April 30 each year beginning in 2007, each county must provide the <br/>
<a id="pl.227.34"></a><var>227.34</var>commissioner with the following data for each parcel of homestead property by electronic <br/>
<a id="pl.227.35"></a><var>227.35</var>means as defined in section 
         <statute_ref>289A.02, subdivision 8</statute_ref>: <br/>
<a id="pl.228.1"></a><var>228.1</var>    (i) the property identification number assigned to the parcel for purposes of taxes <br/>
<a id="pl.228.2"></a><var>228.2</var>payable in the current year; <br/>
<a id="pl.228.3"></a><var>228.3</var>    (ii) the name and Social Security number of each occupant of homestead property <br/>
<a id="pl.228.4"></a><var>228.4</var>who is the property owner, property owner's spouse, qualifying relative of a property <br/>
<a id="pl.228.5"></a><var>228.5</var>owner, or spouse of a qualifying relative; <br/>
<a id="pl.228.6"></a><var>228.6</var>    (iii) the classification of the property under section 
         <statute_ref>273.13</statute_ref> for taxes payable in the <br/>
<a id="pl.228.7"></a><var>228.7</var>current year and in the prior year; <br/>
<a id="pl.228.8"></a><var>228.8</var>    (iv) an indication of whether the property was classified as a homestead for taxes <br/>
<a id="pl.228.9"></a><var>228.9</var>payable in the current year because of occupancy by a relative of the owner or by a <br/>
<a id="pl.228.10"></a><var>228.10</var>spouse of a relative; <br/>
<a id="pl.228.11"></a><var>228.11</var>    (v) the property taxes payable as defined in section 
         <statute_ref>290A.03, subdivision 13</statute_ref>, for the <br/>
<a id="pl.228.12"></a><var>228.12</var>current year and the prior year; <br/>
<a id="pl.228.13"></a><var>228.13</var>    (vi) the market value of improvements to the property first assessed for tax purposes <br/>
<a id="pl.228.14"></a><var>228.14</var>for taxes payable in the current year; <br/>
<a id="pl.228.15"></a><var>228.15</var>    (vii) the assessor's estimated market value assigned to the property for taxes payable <br/>
<a id="pl.228.16"></a><var>228.16</var>in the current year and the prior year; <br/>
<a id="pl.228.17"></a><var>228.17</var>    (viii) the taxable market value assigned to the property for taxes payable in the <br/>
<a id="pl.228.18"></a><var>228.18</var>current year and the prior year; <br/>
<a id="pl.228.19"></a><var>228.19</var>    (ix) whether there are delinquent property taxes owing on the homestead; <br/>
<a id="pl.228.20"></a><var>228.20</var>    (x) the unique taxing district in which the property is located; and <br/>
<a id="pl.228.21"></a><var>228.21</var>    (xi) such other information as the commissioner decides is necessary. <br/>
<a id="pl.228.22"></a><var>228.22</var>    The commissioner shall use the information provided on the lists as appropriate <br/>
<a id="pl.228.23"></a><var>228.23</var>under the law, including for the detection of improper claims by owners, or relatives <br/>
<a id="pl.228.24"></a><var>228.24</var>of owners, under chapter 290A. <br/>
<a id="pl.228.25"></a><var>228.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.13.0"></a><a id="pl.228.26"></a><var>228.26</var>    Sec. 13. Minnesota Statutes 2006, section 273.124, subdivision 21, is amended to read:<br/>
<a id="pl.228.27"></a><var>228.27</var>    Subd. 21. <b>Trust property; homestead.</b> Real property held by a trustee under a trust <br/>
<a id="pl.228.28"></a><var>228.28</var>is eligible for classification as homestead property if:<br/>
<a id="pl.228.29"></a><var>228.29</var>    (1) the grantor or surviving spouse of the grantor of the trust occupies and uses the <br/>
<a id="pl.228.30"></a><var>228.30</var>property as a homestead;<br/>
<a id="pl.228.31"></a><var>228.31</var>    (2) a relative or surviving relative of the grantor who meets the requirements of <br/>
<a id="pl.228.32"></a><var>228.32</var>subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1, <br/>
<a id="pl.228.33"></a><var>228.33</var>paragraph (d), in the case of agricultural property, occupies and uses the property as <br/>
<a id="pl.228.34"></a><var>228.34</var>a homestead;<br/>
<a id="pl.229.1"></a><var>229.1</var>    (3) a family farm corporation, joint farm venture, limited liability company, or <br/>
<a id="pl.229.2"></a><var>229.2</var>partnership operating a family farm in which the grantor or the grantor's surviving spouse <br/>
<a id="pl.229.3"></a><var>229.3</var>is a shareholder, member, or partner rents the property held by a trustee under a trust, and <br/>
<a id="pl.229.4"></a><var>229.4</var>the grantor, the spouse of the grantor, or the son or daughter of the grantor, who is also a <br/>
<a id="pl.229.5"></a><var>229.5</var>shareholder, member, or partner of the corporation, joint farm venture, limited liability <br/>
<a id="pl.229.6"></a><var>229.6</var>company, or partnership occupies and uses the property as a homestead, or is actively <br/>
<a id="pl.229.7"></a><var>229.7</var>farming at least 40 acres, including undivided government lots and correctional 40's the <br/>
<a id="pl.229.8"></a><var>229.8</var>property on behalf of the corporation, joint farm venture, limited liability company, or <br/>
<a id="pl.229.9"></a><var>229.9</var>partnership; or<br/>
<a id="pl.229.10"></a><var>229.10</var>    (4) a person who has received homestead classification for property taxes payable in <br/>
<a id="pl.229.11"></a><var>229.11</var>2000 on the basis of an unqualified legal right under the terms of the trust agreement to <br/>
<a id="pl.229.12"></a><var>229.12</var>occupy the property as that person's homestead and who continues to use the property as <br/>
<a id="pl.229.13"></a><var>229.13</var>a homestead or a person who received the homestead classification for taxes payable in <br/>
<a id="pl.229.14"></a><var>229.14</var>2005 under clause (3) who does not qualify under clause (3) for taxes payable in 2006 <br/>
<a id="pl.229.15"></a><var>229.15</var>or thereafter but who continues to qualify under clause (3) as it existed for taxes payable <br/>
<a id="pl.229.16"></a><var>229.16</var>in 2005.<br/>
<a id="pl.229.17"></a><var>229.17</var>    For purposes of this subdivision, "grantor" is defined as the person creating or <br/>
<a id="pl.229.18"></a><var>229.18</var>establishing a testamentary, inter Vivos, revocable or irrevocable trust by written <br/>
<a id="pl.229.19"></a><var>229.19</var>instrument or through the exercise of a power of appointment.<br/>
<a id="pl.229.20"></a><var>229.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.14.0"></a><a id="pl.229.21"></a><var>229.21</var>    Sec. 14. Minnesota Statutes 2006, section 273.13, subdivision 22, as amended by Laws <br/>
<a id="pl.229.22"></a><var>229.22</var>2008, chapter 154, article 2, section 11, is amended to read:<br/>
<a id="pl.229.23"></a><var>229.23</var>    Subd. 22.  <b>Class 1.</b> (a) Except as provided in subdivision 23 and in paragraphs (b) <br/>
<a id="pl.229.24"></a><var>229.24</var>and (c), real estate which is residential and used for homestead purposes is class 1a. In the <br/>
<a id="pl.229.25"></a><var>229.25</var>case of a duplex or triplex in which one of the units is used for homestead purposes, the <br/>
<a id="pl.229.26"></a><var>229.26</var>entire property is deemed to be used for homestead purposes. The market value of class 1a <br/>
<a id="pl.229.27"></a><var>229.27</var>property must be determined based upon the value of the house, garage, and land.<br/>
<a id="pl.229.28"></a><var>229.28</var>    The first $500,000 of market value of class 1a property has a net class rate of <br/>
<a id="pl.229.29"></a><var>229.29</var>one percent of its market value; and the market value of class 1a property that exceeds <br/>
<a id="pl.229.30"></a><var>229.30</var>$500,000 has a class rate of 1.25 percent of its market value.<br/>
<a id="pl.229.31"></a><var>229.31</var>    (b) Class 1b property includes homestead real estate or homestead manufactured <br/>
<a id="pl.229.32"></a><var>229.32</var>homes used for the purposes of a homestead by <br/>
<a id="pl.229.33"></a><var>229.33</var>    (1) any person who is blind as defined in section 
         <statute_ref>256D.35</statute_ref>, or the blind person and <br/>
<a id="pl.229.34"></a><var>229.34</var>the blind person's spouse; or <br/>
<a id="pl.230.1"></a><var>230.1</var>    (2) any person who is permanently and totally disabled or by the disabled person and <br/>
<a id="pl.230.2"></a><var>230.2</var>the disabled person's spouse.; or<br/>
<a id="pl.230.3"></a><var>230.3</var>    (3) the surviving spouse of a permanently and totally disabled veteran homesteading <br/>
<a id="pl.230.4"></a><var>230.4</var>a property classified under this paragraph for taxes payable in 2008.<br/>
<a id="pl.230.5"></a><var>230.5</var>    Property is classified and assessed under clause (2) only if the government agency or <br/>
<a id="pl.230.6"></a><var>230.6</var>income-providing source certifies, upon the request of the homestead occupant, that the <br/>
<a id="pl.230.7"></a><var>230.7</var>homestead occupant satisfies the disability requirements of this paragraph, and that the <br/>
<a id="pl.230.8"></a><var>230.8</var>property is not eligible for the valuation exclusion under subdivision 34.<br/>
<a id="pl.230.9"></a><var>230.9</var>    Property is classified and assessed under paragraph (b) only if the commissioner <br/>
<a id="pl.230.10"></a><var>230.10</var>of revenue or the county assessor certifies  that the homestead occupant satisfies the <br/>
<a id="pl.230.11"></a><var>230.11</var>requirements of this paragraph.<br/>
<a id="pl.230.12"></a><var>230.12</var>    Permanently and totally disabled for the purpose of this subdivision means a <br/>
<a id="pl.230.13"></a><var>230.13</var>condition which is permanent in nature and totally incapacitates the person from working <br/>
<a id="pl.230.14"></a><var>230.14</var>at an occupation which brings the person an income. The first $50,000 market value of <br/>
<a id="pl.230.15"></a><var>230.15</var>class 1b property has a net class rate of .45 percent of its market value. The remaining <br/>
<a id="pl.230.16"></a><var>230.16</var>market value of class 1b property has a class rate using the rates for class 1a or class 2a <br/>
<a id="pl.230.17"></a><var>230.17</var>property, whichever is appropriate, of similar market value.<br/>
<a id="pl.230.18"></a><var>230.18</var>    (c) Class 1c property is commercial use real and personal property that abuts public <br/>
<a id="pl.230.19"></a><var>230.19</var>water as defined in section 
         <statute_ref>103G.005, subdivision 15</statute_ref>, and is devoted to temporary and <br/>
<a id="pl.230.20"></a><var>230.20</var>seasonal residential occupancy for recreational purposes but not devoted to commercial <br/>
<a id="pl.230.21"></a><var>230.21</var>purposes for more than 250 days in the year preceding the year of assessment, and that <br/>
<a id="pl.230.22"></a><var>230.22</var>includes a portion used as a homestead by the owner, which includes a dwelling occupied <br/>
<a id="pl.230.23"></a><var>230.23</var>as a homestead by a shareholder of a corporation that owns the resort, a partner in a <br/>
<a id="pl.230.24"></a><var>230.24</var>partnership that owns the resort, or a member of a limited liability company that owns <br/>
<a id="pl.230.25"></a><var>230.25</var>the resort even if the title to the homestead is held by the corporation, partnership, or <br/>
<a id="pl.230.26"></a><var>230.26</var>limited liability company. For purposes of this clause, property is devoted to a commercial <br/>
<a id="pl.230.27"></a><var>230.27</var>purpose on a specific day if any portion of the property, excluding the portion used <br/>
<a id="pl.230.28"></a><var>230.28</var>exclusively as a homestead, is used for residential occupancy and a fee is charged for <br/>
<a id="pl.230.29"></a><var>230.29</var>residential occupancy. Class 1c property must contain three or more rental units. A <br/>
<a id="pl.230.30"></a><var>230.30</var>"rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual <br/>
<a id="pl.230.31"></a><var>230.31</var>camping site equipped with water and electrical hookups for recreational vehicles. Class <br/>
<a id="pl.230.32"></a><var>230.32</var>1c property must provide recreational activities such as the rental of ice fishing houses, <br/>
<a id="pl.230.33"></a><var>230.33</var>boats and motors, snowmobiles, downhill or cross-country ski equipment; provide marina <br/>
<a id="pl.230.34"></a><var>230.34</var>services, launch services, or guide services; or sell bait and fishing tackle. Any unit in <br/>
<a id="pl.230.35"></a><var>230.35</var>which the right to use the property is transferred to an individual or entity by deeded <br/>
<a id="pl.230.36"></a><var>230.36</var>interest, or the sale of shares or stock, no longer qualifies for class 1c even though it may <br/>
<a id="pl.231.1"></a><var>231.1</var>remain available for rent. A camping pad offered for rent by a property that otherwise <br/>
<a id="pl.231.2"></a><var>231.2</var>qualifies for class 1c is also class 1c, regardless of the term of the rental agreement, as long <br/>
<a id="pl.231.3"></a><var>231.3</var>as the use of the camping pad does not exceed 250 days. The portion of the property used <br/>
<a id="pl.231.4"></a><var>231.4</var>as a homestead is class 1a property under paragraph (a). The remainder of the property is <br/>
<a id="pl.231.5"></a><var>231.5</var>classified as follows: the first $600,000  of market value is tier I, the next $1,700,000 of <br/>
<a id="pl.231.6"></a><var>231.6</var>market value is tier II, and any remaining market value is tier III. The class rates for class <br/>
<a id="pl.231.7"></a><var>231.7</var>1c are: tier I, 0.50  percent; tier II, 1.0 percent; and tier III, 1.25 percent. Owners of real and <br/>
<a id="pl.231.8"></a><var>231.8</var>personal property devoted to temporary and seasonal residential occupancy for recreation <br/>
<a id="pl.231.9"></a><var>231.9</var>purposes in which all or a portion of the property was devoted to commercial purposes for <br/>
<a id="pl.231.10"></a><var>231.10</var>not more than 250 days in the year preceding the year of assessment desiring classification <br/>
<a id="pl.231.11"></a><var>231.11</var>as class 1c, must submit a declaration to the assessor designating the cabins or units <br/>
<a id="pl.231.12"></a><var>231.12</var>occupied for 250 days or less in the year preceding the year of assessment by January 15 of <br/>
<a id="pl.231.13"></a><var>231.13</var>the assessment year. Those cabins or units and a proportionate share of the land on which <br/>
<a id="pl.231.14"></a><var>231.14</var>they are located must be designated as class 1c as otherwise provided. The remainder of <br/>
<a id="pl.231.15"></a><var>231.15</var>the cabins or units and a proportionate share of the land on which they are located must be <br/>
<a id="pl.231.16"></a><var>231.16</var>designated as class 3a commercial. The owner of property desiring designation as class <br/>
<a id="pl.231.17"></a><var>231.17</var>1c property must provide guest registers or other records demonstrating that the units for <br/>
<a id="pl.231.18"></a><var>231.18</var>which class 1c designation is sought were not occupied for more than 250 days in the <br/>
<a id="pl.231.19"></a><var>231.19</var>year preceding the assessment if so requested. The portion of a property operated as a <br/>
<a id="pl.231.20"></a><var>231.20</var>(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other <br/>
<a id="pl.231.21"></a><var>231.21</var>nonresidential facility operated on a commercial basis not directly related to temporary <br/>
<a id="pl.231.22"></a><var>231.22</var>and seasonal residential occupancy for recreation purposes does not qualify for class 1c. <br/>
<a id="pl.231.23"></a><var>231.23</var>    (d) Class 1d property includes structures that meet all of the following criteria: <br/>
<a id="pl.231.24"></a><var>231.24</var>    (1) the structure is located on property that is classified as agricultural property under <br/>
<a id="pl.231.25"></a><var>231.25</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>; <br/>
<a id="pl.231.26"></a><var>231.26</var>    (2) the structure is occupied exclusively by seasonal farm workers during the time <br/>
<a id="pl.231.27"></a><var>231.27</var>when they work on that farm, and the occupants are not charged rent for the privilege of <br/>
<a id="pl.231.28"></a><var>231.28</var>occupying the property, provided that use of the structure for storage of farm equipment <br/>
<a id="pl.231.29"></a><var>231.29</var>and produce does not disqualify the property from classification under this paragraph; <br/>
<a id="pl.231.30"></a><var>231.30</var>    (3) the structure meets all applicable health and safety requirements for the <br/>
<a id="pl.231.31"></a><var>231.31</var>appropriate season; and <br/>
<a id="pl.231.32"></a><var>231.32</var>    (4) the structure is not salable as residential property because it does not comply <br/>
<a id="pl.231.33"></a><var>231.33</var>with local ordinances relating to location in relation to streets or roads. <br/>
<a id="pl.231.34"></a><var>231.34</var>    The market value of class 1d property has the same class rates as class 1a property <br/>
<a id="pl.231.35"></a><var>231.35</var>under paragraph (a). <br/>
<a id="pl.232.1"></a><var>232.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2009 and <br/>
<a id="pl.232.2"></a><var>232.2</var>thereafter.<br/>
<br/>
<a id="bill.15.15.0"></a><a id="pl.232.3"></a><var>232.3</var>    Sec. 15. Minnesota Statutes 2006, section 273.13, subdivision 34, as added by Laws <br/>
<a id="pl.232.4"></a><var>232.4</var>2008, chapter 154, article 2, section 14, is amended to read:<br/>
<a id="pl.232.5"></a><var>232.5</var>    Subd. 34.  <b>Homestead of disabled veteran.</b> (a) All or a portion of the market value <br/>
<a id="pl.232.6"></a><var>232.6</var>of property owned by a veteran or by the veteran and the veteran's spouse qualifying <br/>
<a id="pl.232.7"></a><var>232.7</var>for homestead classification under subdivision 22 or 23 is excluded in determining the <br/>
<a id="pl.232.8"></a><var>232.8</var>property's taxable market value if it serves as the homestead of a military veteran, as <br/>
<a id="pl.232.9"></a><var>232.9</var>defined in section 
         <statute_ref>197.447</statute_ref>, who has a service-connected disability of 70 percent or more. <br/>
<a id="pl.232.10"></a><var>232.10</var>To qualify for exclusion under this subdivision, the veteran must have been honorably <br/>
<a id="pl.232.11"></a><var>232.11</var>discharged from the United States armed forces, as indicated by United States Government <br/>
<a id="pl.232.12"></a><var>232.12</var>Form DD214 or other official military discharge papers, and must be certified by the <br/>
<a id="pl.232.13"></a><var>232.13</var>United States Veterans Administration as having a service-connected disability. <br/>
<a id="pl.232.14"></a><var>232.14</var>    (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is <br/>
<a id="pl.232.15"></a><var>232.15</var>excluded, except as provided in clause (2); and<br/>
<a id="pl.232.16"></a><var>232.16</var>    (2) for a total (100 percent) and permanent disability, $300,000 of market value is <br/>
<a id="pl.232.17"></a><var>232.17</var>excluded.<br/>
<a id="pl.232.18"></a><var>232.18</var>    (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), <br/>
<a id="pl.232.19"></a><var>232.19</var>clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the <br/>
<a id="pl.232.20"></a><var>232.20</var>spouse holds the legal or beneficial title to the homestead and permanently resides there, <br/>
<a id="pl.232.21"></a><var>232.21</var>the exclusion shall carry over to the benefit of the veteran's spouse for one additional <br/>
<a id="pl.232.22"></a><var>232.22</var>assessment year or until such time as the spouse sells, transfers, or otherwise disposes of <br/>
<a id="pl.232.23"></a><var>232.23</var>the property, whichever comes first.<br/>
<a id="pl.232.24"></a><var>232.24</var>    (d) In the case of an agricultural homestead, only the portion of the property <br/>
<a id="pl.232.25"></a><var>232.25</var>consisting of the house and garage and immediately surrounding one acre of land qualifies <br/>
<a id="pl.232.26"></a><var>232.26</var>for the valuation exclusion under this subdivision.<br/>
<a id="pl.232.27"></a><var>232.27</var>    (e) A property qualifying for a valuation exclusion under this subdivision is not <br/>
<a id="pl.232.28"></a><var>232.28</var>eligible for the credit under section 
         <statute_ref>273.1384, subdivision 1</statute_ref>, or classification under <br/>
<a id="pl.232.29"></a><var>232.29</var>subdivision 22, paragraph (b).<br/>
<a id="pl.232.30"></a><var>232.30</var>    (f) To qualify for a valuation exclusion under this subdivision a property owner must <br/>
<a id="pl.232.31"></a><var>232.31</var>apply to the assessor by July 1 of each assessment year, except that an annual reapplication <br/>
<a id="pl.232.32"></a><var>232.32</var>is not required once a property has been accepted for a valuation exclusion under paragraph <br/>
<a id="pl.232.33"></a><var>232.33</var>(b), clause (2), and the property continues to qualify until there is a change in ownership.<br/>
<a id="pl.233.1"></a><var>233.1</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2008 and <br/>
<a id="pl.233.2"></a><var>233.2</var>thereafter, for taxes payable in 2009 and thereafter, except that the application date in <br/>
<a id="pl.233.3"></a><var>233.3</var>paragraph (f) for the 2008 assessment year is extended to September 1, 2008.<br/>
<br/>
<a id="bill.15.16.0"></a><a id="pl.233.4"></a><var>233.4</var>    Sec. 16. Minnesota Statutes 2006, section 274.014, subdivision 3, is amended to read:<br/>
<a id="pl.233.5"></a><var>233.5</var>    Subd. 3. <b>Proof of compliance; transfer of duties.</b> (a) Any city or town that <br/>
<a id="pl.233.6"></a><var>233.6</var>conducts local boards of appeal and equalization meetings must provide proof to the <br/>
<a id="pl.233.7"></a><var>233.7</var>county assessor by December 1, 2006, and each year thereafter, that it is in compliance <br/>
<a id="pl.233.8"></a><var>233.8</var>with the requirements of subdivision 2. Beginning in 2006, this notice must also verify <br/>
<a id="pl.233.9"></a><var>233.9</var>that there was a quorum of voting members at each meeting of the board of appeal <br/>
<a id="pl.233.10"></a><var>233.10</var>and equalization in the current year. A city or town that does not comply with these <br/>
<a id="pl.233.11"></a><var>233.11</var>requirements is deemed to have transferred its board of appeal and equalization powers <br/>
<a id="pl.233.12"></a><var>233.12</var>to the county beginning with the following year's assessment and continuing unless the <br/>
<a id="pl.233.13"></a><var>233.13</var>powers are reinstated under paragraph (c).<br/>
<a id="pl.233.14"></a><var>233.14</var>    (b) The county shall notify the taxpayers when the board of appeal and equalization <br/>
<a id="pl.233.15"></a><var>233.15</var>for a city or town has been transferred to the county under this subdivision and, prior to <br/>
<a id="pl.233.16"></a><var>233.16</var>the meeting time of the county board of equalization, the county shall make available to <br/>
<a id="pl.233.17"></a><var>233.17</var>those taxpayers a procedure for a review of the assessments, including, but not limited to, <br/>
<a id="pl.233.18"></a><var>233.18</var>open book meetings. This alternate review process shall take place in April and May.<br/>
<a id="pl.233.19"></a><var>233.19</var>    (c) A local board whose powers are transferred to the county under this subdivision <br/>
<a id="pl.233.20"></a><var>233.20</var>may be reinstated by resolution of the governing body of the city or town and upon proof <br/>
<a id="pl.233.21"></a><var>233.21</var>of compliance with the requirements of subdivision 2. The resolution and proofs must be <br/>
<a id="pl.233.22"></a><var>233.22</var>provided to the county assessor by December 1 in order to be effective for the following <br/>
<a id="pl.233.23"></a><var>233.23</var>year's assessment.<br/>
<a id="pl.233.24"></a><var>233.24</var>    (d) A local board whose powers are transferred to the county under this subdivision <br/>
<a id="pl.233.25"></a><var>233.25</var>may continue to employ a local assessor and is not deemed to have transferred its powers <br/>
<a id="pl.233.26"></a><var>233.26</var>to make assessments.<br/>
<a id="pl.233.27"></a><var>233.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.17.0"></a><a id="pl.233.28"></a><var>233.28</var>    Sec. 17. Minnesota Statutes 2006, section 276.04, subdivision 2, as amended by Laws <br/>
<a id="pl.233.29"></a><var>233.29</var>2008, chapter 154, article 2, section 19, is amended to read:<br/>
<a id="pl.233.30"></a><var>233.30</var>    Subd. 2.  <b>Contents of tax statements.</b> (a) The treasurer shall provide for the <br/>
<a id="pl.233.31"></a><var>233.31</var>printing of the tax statements. The commissioner of revenue shall prescribe the form <br/>
<a id="pl.233.32"></a><var>233.32</var>of the property tax statement and its contents. The statement must contain a tabulated <br/>
<a id="pl.233.33"></a><var>233.33</var>statement of the dollar amount due to each taxing authority and the amount of the state <br/>
<a id="pl.233.34"></a><var>233.34</var>tax from the parcel of real property for which a particular tax statement is prepared. The <br/>
<a id="pl.234.1"></a><var>234.1</var>dollar amounts attributable to the county, the state tax, the voter approved school tax, the <br/>
<a id="pl.234.2"></a><var>234.2</var>other local school tax, the township or municipality, and the total of the metropolitan <br/>
<a id="pl.234.3"></a><var>234.3</var>special taxing districts as defined in section 
         <statute_ref>275.065, subdivision 3</statute_ref>, paragraph (i), must <br/>
<a id="pl.234.4"></a><var>234.4</var>be separately stated. The amounts due all other special taxing districts, if any, may be <br/>
<a id="pl.234.5"></a><var>234.5</var>aggregated except that any levies made by the regional rail authorities in the county of <br/>
<a id="pl.234.6"></a><var>234.6</var>Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A <br/>
<a id="pl.234.7"></a><var>234.7</var>shall be listed on a separate line directly under the appropriate county's levy. If the county <br/>
<a id="pl.234.8"></a><var>234.8</var>levy under this paragraph includes an amount for a lake improvement district as defined <br/>
<a id="pl.234.9"></a><var>234.9</var>under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that purpose must be <br/>
<a id="pl.234.10"></a><var>234.10</var>separately stated from the remaining county levy amount. In the case of Ramsey County, <br/>
<a id="pl.234.11"></a><var>234.11</var>if the county levy under this paragraph includes an amount for public library service <br/>
<a id="pl.234.12"></a><var>234.12</var>under section 
         <statute_ref>134.07</statute_ref>, the amount attributable for that purpose may be separated from the <br/>
<a id="pl.234.13"></a><var>234.13</var>remaining county levy amount. The amount of the tax on homesteads qualifying under the <br/>
<a id="pl.234.14"></a><var>234.14</var>senior citizens' property tax deferral program under chapter 290B is the total amount of <br/>
<a id="pl.234.15"></a><var>234.15</var>property tax before subtraction of the deferred property tax amount. The amount of the <br/>
<a id="pl.234.16"></a><var>234.16</var>tax on contamination value imposed under sections 
         <statute_ref>270.91</statute_ref> to 
         <statute_ref>270.98</statute_ref>, if any, must also <br/>
<a id="pl.234.17"></a><var>234.17</var>be separately stated. The dollar amounts, including the dollar amount of any special <br/>
<a id="pl.234.18"></a><var>234.18</var>assessments, may be rounded to the nearest even whole dollar. For purposes of this section <br/>
<a id="pl.234.19"></a><var>234.19</var>whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar. <br/>
<a id="pl.234.20"></a><var>234.20</var>The amount of market value excluded under section 
         <statute_ref>273.11, subdivision 16</statute_ref>, if any, must <br/>
<a id="pl.234.21"></a><var>234.21</var>also be listed on the tax statement. <br/>
<a id="pl.234.22"></a><var>234.22</var>    (b) The property tax statements for manufactured homes and sectional structures <br/>
<a id="pl.234.23"></a><var>234.23</var>taxed as personal property shall contain the same information that is required on the <br/>
<a id="pl.234.24"></a><var>234.24</var>tax statements for real property. <br/>
<a id="pl.234.25"></a><var>234.25</var>    (c) Real and personal property tax statements must contain the following information <br/>
<a id="pl.234.26"></a><var>234.26</var>in the order given in this paragraph. The information must contain the current year tax <br/>
<a id="pl.234.27"></a><var>234.27</var>information in the right column with the corresponding information for the previous year <br/>
<a id="pl.234.28"></a><var>234.28</var>in a column on the left: <br/>
<a id="pl.234.29"></a><var>234.29</var>    (1) the property's estimated market value under section 
         <statute_ref>273.11, subdivision 1</statute_ref>; <br/>
<a id="pl.234.30"></a><var>234.30</var>    (2) the property's taxable market value after reductions under section 
         <statute_ref>273.11, <br/>
<a id="pl.234.31"></a><var>234.31</var>subdivisions 1a and 16
         </statute_ref>; <br/>
<a id="pl.234.32"></a><var>234.32</var>    (3) the property's gross tax, before credits; <br/>
<a id="pl.234.33"></a><var>234.33</var>    (4) for homestead residential and agricultural properties, the credits under section <br/>
<statute_ref><a id="pl.234.34"></a><var>234.34</var>273.1384
         </statute_ref>; <br/>
<a id="pl.234.35"></a><var>234.35</var>    (5) any credits received under sections 
         <statute_ref>273.119</statute_ref>; 
         <statute_ref>273.123</statute_ref> 273.1234 or 273.1235; <br/>
<statute_ref><a id="pl.234.36"></a><var>234.36</var>273.135
         </statute_ref>; 
         <statute_ref>273.1391</statute_ref>; 
         <statute_ref>273.1398, subdivision 4</statute_ref>; 
         <statute_ref>469.171</statute_ref>; and 
         <statute_ref>473H.10</statute_ref>, except that the <br/>
<a id="pl.235.1"></a><var>235.1</var>amount of credit received under section 
         <statute_ref>273.135</statute_ref> must be separately stated and identified <br/>
<a id="pl.235.2"></a><var>235.2</var>as "taconite tax relief"; and <br/>
<a id="pl.235.3"></a><var>235.3</var>    (6) the net tax payable in the manner required in paragraph (a). <br/>
<a id="pl.235.4"></a><var>235.4</var>    (d) If the county uses envelopes for mailing property tax statements and if the county <br/>
<a id="pl.235.5"></a><var>235.5</var>agrees, a taxing district may include a notice with the property tax statement notifying <br/>
<a id="pl.235.6"></a><var>235.6</var>taxpayers when the taxing district will begin its budget deliberations for the current <br/>
<a id="pl.235.7"></a><var>235.7</var>year, and encouraging taxpayers to attend the hearings. If the county allows notices to <br/>
<a id="pl.235.8"></a><var>235.8</var>be included in the envelope containing the property tax statement, and if more than <br/>
<a id="pl.235.9"></a><var>235.9</var>one taxing district relative to a given property decides to include a notice with the tax <br/>
<a id="pl.235.10"></a><var>235.10</var>statement, the county treasurer or auditor must coordinate the process and may combine <br/>
<a id="pl.235.11"></a><var>235.11</var>the information on a single announcement. <br/>
<a id="pl.235.12"></a><var>235.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.18.0"></a><a id="pl.235.13"></a><var>235.13</var>    Sec. 18. Minnesota Statutes 2006, section 290B.04, subdivision 1, is amended to read:<br/>
<a id="pl.235.14"></a><var>235.14</var>    Subdivision 1. <b>Initial application.</b> (a) A taxpayer meeting the program <br/>
<a id="pl.235.15"></a><var>235.15</var>qualifications under section 
         <statute_ref>290B.03</statute_ref> may apply to the commissioner of revenue for the <br/>
<a id="pl.235.16"></a><var>235.16</var>deferral of taxes. Applications are due on or before July 1 for deferral of any of the <br/>
<a id="pl.235.17"></a><var>235.17</var>following year's property taxes. A taxpayer may apply in the year in which the taxpayer <br/>
<a id="pl.235.18"></a><var>235.18</var>becomes 65 years old, provided that no deferral of property taxes will be made until the <br/>
<a id="pl.235.19"></a><var>235.19</var>calendar year after the taxpayer becomes 65 years old. The application, which shall be <br/>
<a id="pl.235.20"></a><var>235.20</var>prescribed by the commissioner of revenue, shall include the following items and any <br/>
<a id="pl.235.21"></a><var>235.21</var>other information which the commissioner deems necessary: <br/>
<a id="pl.235.22"></a><var>235.22</var>    (1) the name, address, and Social Security number of the owner or owners;<br/>
<a id="pl.235.23"></a><var>235.23</var>    (2) a copy of the property tax statement for the current payable year for the <br/>
<a id="pl.235.24"></a><var>235.24</var>homesteaded property;<br/>
<a id="pl.235.25"></a><var>235.25</var>    (3) the initial year of ownership and occupancy as a homestead;<br/>
<a id="pl.235.26"></a><var>235.26</var>    (4) the owner's household income for the previous calendar year; and<br/>
<a id="pl.235.27"></a><var>235.27</var>    (5) information on any mortgage loans or other amounts secured by mortgages or <br/>
<a id="pl.235.28"></a><var>235.28</var>other liens against the property, for which purpose the commissioner may require the <br/>
<a id="pl.235.29"></a><var>235.29</var>applicant to provide a copy of the mortgage note, the mortgage, or a statement of the <br/>
<a id="pl.235.30"></a><var>235.30</var>balance owing on the mortgage loan provided by the mortgage holder. The commissioner <br/>
<a id="pl.235.31"></a><var>235.31</var>may require the appropriate documents in connection with obtaining and confirming <br/>
<a id="pl.235.32"></a><var>235.32</var>information on unpaid amounts secured by other liens.<br/>
<a id="pl.235.33"></a><var>235.33</var>    The application must state that program participation is voluntary. The application <br/>
<a id="pl.235.34"></a><var>235.34</var>must also state that the deferred amount depends directly on the applicant's household <br/>
<a id="pl.235.35"></a><var>235.35</var>income, and that program participation includes authorization for the annual deferred <br/>
<a id="pl.236.1"></a><var>236.1</var>amount, the cumulative deferral and interest that appear on each year's notice prepared by <br/>
<a id="pl.236.2"></a><var>236.2</var>the county under subdivision 6, is public data.<br/>
<a id="pl.236.3"></a><var>236.3</var>    The application must state that program participants may claim the property tax <br/>
<a id="pl.236.4"></a><var>236.4</var>refund based on the full amount of property taxes eligible for the refund, including any <br/>
<a id="pl.236.5"></a><var>236.5</var>deferred amounts. The application must also state that property tax refunds will be used to <br/>
<a id="pl.236.6"></a><var>236.6</var>offset any deferral and interest under this program, and that any other amounts subject to <br/>
<a id="pl.236.7"></a><var>236.7</var>revenue recapture under section 
         <statute_ref>270A.03, subdivision 7</statute_ref>, will also be used to offset any <br/>
<a id="pl.236.8"></a><var>236.8</var>deferral and interest under this program. <br/>
<a id="pl.236.9"></a><var>236.9</var>    (b) As part of the initial application process, the commissioner may require the <br/>
<a id="pl.236.10"></a><var>236.10</var>applicant to obtain at the applicant's own cost and submit:<br/>
<a id="pl.236.11"></a><var>236.11</var>    (1) if the property is registered property under chapter 508 or 508A, a copy of the <br/>
<a id="pl.236.12"></a><var>236.12</var>original certificate of title in the possession of the county registrar of titles (sometimes <br/>
<a id="pl.236.13"></a><var>236.13</var>referred to as "condition of register"); or<br/>
<a id="pl.236.14"></a><var>236.14</var>    (2) if the property is abstract property, a report prepared by a licensed abstracter <br/>
<a id="pl.236.15"></a><var>236.15</var>showing the last deed and any unsatisfied mortgages, liens, judgments, and state and <br/>
<a id="pl.236.16"></a><var>236.16</var>federal tax lien notices which were recorded on or after the date of that last deed with <br/>
<a id="pl.236.17"></a><var>236.17</var>respect to the property or to the applicant.<br/>
<a id="pl.236.18"></a><var>236.18</var>    The certificate or report under clauses (1) and (2) need not include references to <br/>
<a id="pl.236.19"></a><var>236.19</var>any documents filed or recorded more than 40 years prior to the date of the certification <br/>
<a id="pl.236.20"></a><var>236.20</var>or report. The certification or report must be as of a date not more than 30 days prior <br/>
<a id="pl.236.21"></a><var>236.21</var>to submission of the application.<br/>
<a id="pl.236.22"></a><var>236.22</var>    The commissioner may also require the county recorder or county registrar of the <br/>
<a id="pl.236.23"></a><var>236.23</var>county where the property is located to provide copies of recorded documents related to <br/>
<a id="pl.236.24"></a><var>236.24</var>the applicant or the property, for which the recorder or registrar shall not charge a fee. The <br/>
<a id="pl.236.25"></a><var>236.25</var>commissioner may use any information available to determine or verify eligibility under <br/>
<a id="pl.236.26"></a><var>236.26</var>this section. The household income from the application is private data on individuals as <br/>
<a id="pl.236.27"></a><var>236.27</var>defined in section 13.02, subdivision 12.<br/>
<a id="pl.236.28"></a><var>236.28</var><b>EFFECTIVE DATE.</b>This section is effective for data collected or maintained by <br/>
<a id="pl.236.29"></a><var>236.29</var>the commissioner of revenue beginning the day following final enactment.<br/>
<br/>
<a id="bill.15.19.0"></a><a id="pl.236.30"></a><var>236.30</var>    Sec. 19. Minnesota Statutes 2006, section 469.040, subdivision 4, is amended to read:<br/>
<a id="pl.236.31"></a><var>236.31</var>    Subd. 4. <b>Facilities funded from multiple sources.</b> In the metropolitan area, as <br/>
<a id="pl.236.32"></a><var>236.32</var>defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>, the tax treatment provided in subdivision 3 <br/>
<a id="pl.236.33"></a><var>236.33</var>applies to that portion of any multifamily rental housing facility represented by the ratio of <br/>
<a id="pl.236.34"></a><var>236.34</var>(1) the number of units in the facility that are subject to the requirements of Section 5 of <br/>
<a id="pl.237.1"></a><var>237.1</var>the United States Housing Act of 1937, as the result of the implementation of a federal <br/>
<a id="pl.237.2"></a><var>237.2</var>court order or consent decree to (2) the total number of units within the facility. <br/>
<a id="pl.237.3"></a><var>237.3</var>    The housing and redevelopment authority for the city in which the facility is located, <br/>
<a id="pl.237.4"></a><var>237.4</var>any public entity exercising the powers of such housing and redevelopment authority, or <br/>
<a id="pl.237.5"></a><var>237.5</var>the county housing and redevelopment authority for the county in which the facility is <br/>
<a id="pl.237.6"></a><var>237.6</var>located, shall annually certify to the assessor responsible for assessing the facility, at the <br/>
<a id="pl.237.7"></a><var>237.7</var>time and in the manner required by the assessor, the number of units in the facility that are <br/>
<a id="pl.237.8"></a><var>237.8</var>subject to the requirements of Section 5 of the United States Housing Act of 1937.<br/>
<a id="pl.237.9"></a><var>237.9</var>    Nothing in this subdivision shall prevent that portion of the facility not subject to <br/>
<a id="pl.237.10"></a><var>237.10</var>this subdivision from meeting the requirements of section 
         <statute_ref>273.126</statute_ref> 273.128, and for that <br/>
<a id="pl.237.11"></a><var>237.11</var>purpose the total number of units in the facility must be taken into account. <br/>
<a id="pl.237.12"></a><var>237.12</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for taxes payable in <br/>
<a id="pl.237.13"></a><var>237.13</var>2006 and thereafter.<br/>
<br/>
<a id="bill.15.20.0"></a><a id="pl.237.14"></a><var>237.14</var>    Sec. 20. Minnesota Statutes 2006, section 469.174, subdivision 10b, is amended to <br/>
<a id="pl.237.15"></a><var>237.15</var>read:<br/>
<a id="pl.237.16"></a><var>237.16</var>    Subd. 10b. <b>Qualified disaster area.</b> A "qualified disaster area" is an area that <br/>
<a id="pl.237.17"></a><var>237.17</var>meets the following requirements:<br/>
<a id="pl.237.18"></a><var>237.18</var>    (1) parcels consisting of 70 percent of the area of the district were occupied by <br/>
<a id="pl.237.19"></a><var>237.19</var>buildings, streets, utilities, paved or gravel parking lots, or other similar structures <br/>
<a id="pl.237.20"></a><var>237.20</var>immediately before the disaster or emergency;<br/>
<a id="pl.237.21"></a><var>237.21</var>    (2) the area of the district was subject to a disaster or emergency, as defined in <br/>
<a id="pl.237.22"></a><var>237.22</var>section 
         <statute_ref>273.123, subdivision 1 273.1231, subdivision 2</statute_ref>, within the 18-month period <br/>
<a id="pl.237.23"></a><var>237.23</var>ending on the day the request for certification of the district is made; and <br/>
<a id="pl.237.24"></a><var>237.24</var>    (3) 50 percent or more of the buildings in the area have suffered substantial damage <br/>
<a id="pl.237.25"></a><var>237.25</var>as a result of the disaster or emergency.<br/>
<a id="pl.237.26"></a><var>237.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.21.0"></a><a id="pl.237.27"></a><var>237.27</var>    Sec. 21. Minnesota Statutes 2006, section 469.177, subdivision 1c, is amended to read:<br/>
<a id="pl.237.28"></a><var>237.28</var>    Subd. 1c. <b>Original net tax capacity adjustments; presidential disaster area.</b> (a) <br/>
<a id="pl.237.29"></a><var>237.29</var>The provisions of this subdivision apply to a district located in a disaster area, as described <br/>
<a id="pl.237.30"></a><var>237.30</var>in section   
         <statute_ref>273.123, subdivision 1</statute_ref>, paragraph (b) 273.1231, subdivision 3, paragraph (a), <br/>
<a id="pl.237.31"></a><var>237.31</var>clause (1), and are effective for taxes payable in the first calendar year beginning at least <br/>
<a id="pl.237.32"></a><var>237.32</var>four months after the date of the determination. <br/>
<a id="pl.237.33"></a><var>237.33</var>    (b) For a district certified before the date of the disaster area determination as <br/>
<a id="pl.237.34"></a><var>237.34</var>provided in section   
         <statute_ref>273.123, subdivision 1</statute_ref>, paragraph (b) 273.1231, subdivision 3, <br/>
<a id="pl.238.1"></a><var>238.1</var>paragraph (a), clause (1), upon the request of the municipality, the county auditor shall <br/>
<a id="pl.238.2"></a><var>238.2</var>reduce the original net tax capacity of the district by the reduction in the net tax capacity <br/>
<a id="pl.238.3"></a><var>238.3</var>of properties in the district that is attributable to the physical effects of the disaster, but not <br/>
<a id="pl.238.4"></a><var>238.4</var>below zero. The assessor shall determine the amount of the reduction in market value that <br/>
<a id="pl.238.5"></a><var>238.5</var>is attributable to the physical effects of the disaster to be used by the county auditor in <br/>
<a id="pl.238.6"></a><var>238.6</var>computing the reduction in net tax capacity. <br/>
<a id="pl.238.7"></a><var>238.7</var>    (c) For a district that does not qualify under paragraph (b) and for which the request <br/>
<a id="pl.238.8"></a><var>238.8</var>for certification is made in the same calendar year as the disaster area determination, <br/>
<a id="pl.238.9"></a><var>238.9</var>upon the request of the municipality, the assessor shall determine the reduction in market <br/>
<a id="pl.238.10"></a><var>238.10</var>value of properties in the district that is attributable to the physical effects of the disaster. <br/>
<a id="pl.238.11"></a><var>238.11</var>The county auditor shall use the reduced market value in certifying the original net tax <br/>
<a id="pl.238.12"></a><var>238.12</var>capacity of the district.<br/>
<a id="pl.238.13"></a><var>238.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.0.0"></a>

<a id="bill.16.1.0"></a><a id="pl.238.16"></a><var>238.16</var>    Section 1. Minnesota Statutes 2006, section 16D.02, subdivision 3, is amended to read:<br/>
<a id="pl.238.17"></a><var>238.17</var>    Subd. 3. <b>Debt.</b> "Debt" means an amount owed to the state directly, or through a <br/>
<a id="pl.238.18"></a><var>238.18</var>state agency, on account of a fee, duty, lease, direct loan, loan insured or guaranteed by <br/>
<a id="pl.238.19"></a><var>238.19</var>the state, rent, service, sale of real or personal property, overpayment, fine, assessment, <br/>
<a id="pl.238.20"></a><var>238.20</var>penalty, restitution, damages, interest, tax, bail bond, forfeiture, reimbursement, liability <br/>
<a id="pl.238.21"></a><var>238.21</var>owed, an assignment to the state including assignments under section 
         <statute_ref>256.741</statute_ref>, the Social <br/>
<a id="pl.238.22"></a><var>238.22</var>Security Act, or other state or federal law, recovery of costs incurred by the state, or any <br/>
<a id="pl.238.23"></a><var>238.23</var>other source of indebtedness to the state. Debt also includes amounts owed to individuals <br/>
<a id="pl.238.24"></a><var>238.24</var>as a result of civil, criminal, or administrative action brought by the state or a state agency <br/>
<a id="pl.238.25"></a><var>238.25</var>pursuant to its statutory authority or for which the state or state agency acts in a fiduciary <br/>
<a id="pl.238.26"></a><var>238.26</var>capacity in providing collection services in accordance with the regulations adopted under <br/>
<a id="pl.238.27"></a><var>238.27</var>the Social Security Act at Code of Federal Regulations, title 45, section 
         <statute_ref>302.33</statute_ref>. When the <br/>
<a id="pl.238.28"></a><var>238.28</var>commissioner provides collection services pursuant to a debt qualification plan, debt also <br/>
<a id="pl.238.29"></a><var>238.29</var>includes an amount owed to the courts, local government units, Minnesota state colleges <br/>
<a id="pl.238.30"></a><var>238.30</var>and universities governed by the Board of Trustees of the Minnesota State Colleges and <br/>
<a id="pl.238.31"></a><var>238.31</var>Universities, or University of Minnesota for which the commissioner provides collection <br/>
<a id="pl.238.32"></a><var>238.32</var>services pursuant to contract. <br/>
<a id="pl.238.33"></a><var>238.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.2.0"></a><a id="pl.238.34"></a><var>238.34</var>    Sec. 2. Minnesota Statutes 2006, section 16D.02, subdivision 6, is amended to read:<br/>
<a id="pl.239.1"></a><var>239.1</var>    Subd. 6. <b>Referring agency.</b> "Referring agency" means a state agency, local <br/>
<a id="pl.239.2"></a><var>239.2</var>government unit, Minnesota state colleges and universities governed by the Board of <br/>
<a id="pl.239.3"></a><var>239.3</var>Trustees of the Minnesota State Colleges and Universities, University of Minnesota, or <br/>
<a id="pl.239.4"></a><var>239.4</var>a court, that has entered into a debt qualification plan with the commissioner to refer <br/>
<a id="pl.239.5"></a><var>239.5</var>debts to the commissioner for collection.<br/>
<a id="pl.239.6"></a><var>239.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.3.0"></a><a id="pl.239.7"></a><var>239.7</var>    Sec. 3. Minnesota Statutes 2006, section 16D.04, subdivision 2, as amended by Laws <br/>
<a id="pl.239.8"></a><var>239.8</var>2008, chapter 154, article 15, section 2, is amended to read:<br/>
<a id="pl.239.9"></a><var>239.9</var>    Subd. 2.  <b>Agency participation.</b> (a) A referring agency must refer, by electronic <br/>
<a id="pl.239.10"></a><var>239.10</var>means, debts to the commissioner for collection. Responsibility for the debt, including the <br/>
<a id="pl.239.11"></a><var>239.11</var>reporting of the debt to the commissioner of finance and the decision with regard to the <br/>
<a id="pl.239.12"></a><var>239.12</var>continuing collection and uncollectibility of the debt, remains with the referring agency. <br/>
<a id="pl.239.13"></a><var>239.13</var>Decisions with regard to continuing collection and the uncollectibility of referred debts <br/>
<a id="pl.239.14"></a><var>239.14</var>shall be made by the commissioner who shall then notify the commissioner of finance and <br/>
<a id="pl.239.15"></a><var>239.15</var>the referring agency. A decision by the commissioner that a referred debt is uncollectible <br/>
<a id="pl.239.16"></a><var>239.16</var>does not prevent the referring agency from taking additional collection action.<br/>
<a id="pl.239.17"></a><var>239.17</var>    (b) Before a debt becomes 121 days past due, a referring agency may refer the <br/>
<a id="pl.239.18"></a><var>239.18</var>debt to the commissioner for collection at any time after a debt becomes delinquent and <br/>
<a id="pl.239.19"></a><var>239.19</var>uncontested and the debtor has no further administrative appeal of the amount of the debt. <br/>
<a id="pl.239.20"></a><var>239.20</var>When a debt owed to a referring agency becomes 121 days past due, the referring agency <br/>
<a id="pl.239.21"></a><var>239.21</var>must refer the debt to the commissioner for collection. This requirement does not apply if <br/>
<a id="pl.239.22"></a><var>239.22</var>there is a dispute over the amount or validity of the debt, if the debt is the subject of legal <br/>
<a id="pl.239.23"></a><var>239.23</var>action or administrative proceedings, or the agency determines that the debtor is adhering <br/>
<a id="pl.239.24"></a><var>239.24</var>to acceptable payment arrangements. The commissioner may provide that certain types of <br/>
<a id="pl.239.25"></a><var>239.25</var>debt need not be referred to the commissioner for collection under this paragraph. Methods <br/>
<a id="pl.239.26"></a><var>239.26</var>and procedures for referral must follow internal guidelines prepared by the commissioner. <br/>
<a id="pl.239.27"></a><var>239.27</var>    (c) If the referring agency is a court, the court must furnish a debtor's Social Security <br/>
<a id="pl.239.28"></a><var>239.28</var>number to the commissioner when the court refers the debt. <br/>
<a id="pl.239.29"></a><var>239.29</var><b>EFFECTIVE DATE.</b>This section is effective for debts referred after December <br/>
<a id="pl.239.30"></a><var>239.30</var>31, 2008.<br/>
<br/>
<a id="bill.16.4.0"></a><a id="pl.239.31"></a><var>239.31</var>    Sec. 4. Minnesota Statutes 2006, section 270A.08, subdivision 1, is amended to read:<br/>
<a id="pl.239.32"></a><var>239.32</var>    Subdivision 1. <b>Notice to debtor.</b> (a) Not later than five days after the claimant <br/>
<a id="pl.239.33"></a><var>239.33</var>agency has sent notification to the department pursuant to section 
         <statute_ref>270A.07, subdivision 1</statute_ref>, <br/>
<a id="pl.239.34"></a><var>239.34</var>the claimant agency shall send a written notification to the debtor asserting the right of the <br/>
<a id="pl.240.1"></a><var>240.1</var>claimant agency to the refund or any part thereof. If the notice is returned to the claimant <br/>
<a id="pl.240.2"></a><var>240.2</var>agency as undeliverable, or the claimant agency has reason to believe the debtor did not <br/>
<a id="pl.240.3"></a><var>240.3</var>receive the notice, the claimant agency shall obtain the current last known address of the <br/>
<a id="pl.240.4"></a><var>240.4</var>debtor from the commissioner and resend the corrected notice. <br/>
<a id="pl.240.5"></a><var>240.5</var>    (b) If a debt has been referred to the commissioner for collection under chapter 16D, <br/>
<a id="pl.240.6"></a><var>240.6</var>and the referring agency meets the definition of claimant agency under this chapter, the <br/>
<a id="pl.240.7"></a><var>240.7</var>commissioner must notify the debtor prior to using revenue recapture under this chapter <br/>
<a id="pl.240.8"></a><var>240.8</var>for collection of the debt. The notice must be sent by United States mail or personal <br/>
<a id="pl.240.9"></a><var>240.9</var>delivery to the last known address of the debtor.<br/>
<a id="pl.240.10"></a><var>240.10</var><b>EFFECTIVE DATE.</b>This section is effective for debts referred after December <br/>
<a id="pl.240.11"></a><var>240.11</var>31, 2008.<br/>
<br/>
<a id="bill.16.5.0"></a><a id="pl.240.12"></a><var>240.12</var>    Sec. 5. Minnesota Statutes 2006, section 270C.33, subdivision 5, is amended to read:<br/>
<a id="pl.240.13"></a><var>240.13</var>    Subd. 5. <b>Prohibition against collection during appeal period of an order.</b> No <br/>
<a id="pl.240.14"></a><var>240.14</var>collection action can be taken on an order of assessment, or any other order imposing a <br/>
<a id="pl.240.15"></a><var>240.15</var>liability, including the filing of liens under section 
         <statute_ref>270C.63</statute_ref>, and no late payment penalties <br/>
<a id="pl.240.16"></a><var>240.16</var>may be imposed when a return has been filed for the tax type and period upon which the <br/>
<a id="pl.240.17"></a><var>240.17</var>order is based, during the appeal period of an order. The appeal period of an order ends: <br/>
<a id="pl.240.18"></a><var>240.18</var>(1) 60 days after the order has been mailed to the taxpayer by the commissioner; (2) if an <br/>
<a id="pl.240.19"></a><var>240.19</var>administrative appeal is filed under section 
         <statute_ref>270C.35</statute_ref>, 60 days after determination of the <br/>
<a id="pl.240.20"></a><var>240.20</var>administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when the <br/>
<a id="pl.240.21"></a><var>240.21</var>decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the appeal is <br/>
<a id="pl.240.22"></a><var>240.22</var>based upon a constitutional challenge to the tax, 60 days after final determination of the <br/>
<a id="pl.240.23"></a><var>240.23</var>appeal. This subdivision does not apply to a jeopardy assessment under section 
         <statute_ref>270C.36</statute_ref>, <br/>
<a id="pl.240.24"></a><var>240.24</var>or a jeopardy collection under section 
         <statute_ref>270C.36</statute_ref>.<br/>
<a id="pl.240.25"></a><var>240.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.17.0.0"></a>

<a id="bill.17.1.0"></a><a id="pl.240.28"></a><var>240.28</var>    Section 1. Minnesota Statutes 2006, section 60A.196, is amended to read:<br/>
<a id="pl.240.29"></a><var>240.29</var><b>60A.196 DEFINITIONS.</b><br/>
<a id="pl.240.30"></a><var>240.30</var>    Unless the context otherwise requires, the following terms have the meanings given <br/>
<a id="pl.240.31"></a><var>240.31</var>them for the purposes of sections 
         <statute_ref>60A.195</statute_ref> to 
         <statute_ref>60A.209</statute_ref>: <br/>
<a id="pl.241.1"></a><var>241.1</var>    (a) "Surplus lines insurance" means insurance placed with an insurer permitted <br/>
<a id="pl.241.2"></a><var>241.2</var>to transact the business of insurance in this state only pursuant to sections 
         <statute_ref>60A.195</statute_ref> to <br/>
<statute_ref><a id="pl.241.3"></a><var>241.3</var>60A.209
         </statute_ref>. <br/>
<a id="pl.241.4"></a><var>241.4</var>    (b) "Eligible surplus lines insurer" means an insurer recognized as eligible to write <br/>
<a id="pl.241.5"></a><var>241.5</var>insurance business under sections 
         <statute_ref>60A.195</statute_ref> to 
         <statute_ref>60A.209</statute_ref> but not licensed by any other <br/>
<a id="pl.241.6"></a><var>241.6</var>Minnesota law to transact the business of insurance. <br/>
<a id="pl.241.7"></a><var>241.7</var>    (c) "Ineligible surplus lines insurer" means an insurer not recognized as an eligible <br/>
<a id="pl.241.8"></a><var>241.8</var>surplus lines insurer pursuant to sections 
         <statute_ref>60A.195</statute_ref> to 
         <statute_ref>60A.209</statute_ref> and not licensed by any <br/>
<a id="pl.241.9"></a><var>241.9</var>other Minnesota law to transact the business of insurance. "Ineligible surplus lines <br/>
<a id="pl.241.10"></a><var>241.10</var>insurer" includes a risk retention group as defined under the Liability Risk Retention <br/>
<a id="pl.241.11"></a><var>241.11</var>Act, Public Law 99-563. <br/>
<a id="pl.241.12"></a><var>241.12</var>    (d) "Surplus lines licensee" or "licensee" means a person licensed under sections <br/>
<statute_ref><a id="pl.241.13"></a><var>241.13</var>60A.195
         </statute_ref> to 
         <statute_ref>60A.209</statute_ref> to place insurance with an eligible or ineligible surplus lines insurer. <br/>
<a id="pl.241.14"></a><var>241.14</var>    (e) "Association" means an association registered under section 
         <statute_ref>60A.208</statute_ref>. <br/>
<a id="pl.241.15"></a><var>241.15</var>    (f) "Alien insurer" means any insurer which is incorporated or otherwise organized <br/>
<a id="pl.241.16"></a><var>241.16</var>outside of the United States.<br/>
<a id="pl.241.17"></a><var>241.17</var>    (g) "Insurance laws" means chapters 60 to 79 inclusive.<br/>
<a id="pl.241.18"></a><var>241.18</var>    (h) "Stamping" means electronically assigning a unique identifying number that is <br/>
<a id="pl.241.19"></a><var>241.19</var>specific to a submitted policy, contract, or insurance document.<br/>
<a id="pl.241.20"></a><var>241.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.241.21"></a><var>241.21</var>and applies to policies written or renewed on or after that date.<br/>
<br/>
<a id="bill.17.2.0"></a><a id="pl.241.22"></a><var>241.22</var>    Sec. 2. <b>[60A.2085] SURPLUS LINES ASSOCIATION OF MINNESOTA.</b><br/>
<a id="pl.241.23"></a><var>241.23</var>    Subdivision 1. <b>Association created; duties.</b> There is hereby created a nonprofit <br/>
<a id="pl.241.24"></a><var>241.24</var>association to be known as the Surplus Lines Association of Minnesota. All surplus lines <br/>
<a id="pl.241.25"></a><var>241.25</var>licensees are members of this association. Section 60A.208, subdivision 5, does not apply <br/>
<a id="pl.241.26"></a><var>241.26</var>to the provisions of this section. The association shall perform its functions under the <br/>
<a id="pl.241.27"></a><var>241.27</var>plan of operation established under subdivision 3 and must exercise its powers through a <br/>
<a id="pl.241.28"></a><var>241.28</var>board of directors established under subdivision 2. The association shall be authorized <br/>
<a id="pl.241.29"></a><var>241.29</var>and have the duty to:<br/>
<a id="pl.241.30"></a><var>241.30</var>    (1) receive, record, and stamp all surplus lines insurance documents that surplus <br/>
<a id="pl.241.31"></a><var>241.31</var>lines licensees are required to file with the association;<br/>
<a id="pl.241.32"></a><var>241.32</var>    (2) prepare and deliver monthly to the commissioners of revenue and commerce a <br/>
<a id="pl.241.33"></a><var>241.33</var>report regarding surplus lines business. The report must include a list of all the business <br/>
<a id="pl.241.34"></a><var>241.34</var>procured during the preceding month, in the form the commissioners prescribe;<br/>
<a id="pl.242.1"></a><var>242.1</var>    (3) educate its members regarding the surplus lines law of this state including <br/>
<a id="pl.242.2"></a><var>242.2</var>insurance tax responsibilities and the rules and regulations of the commissioners of <br/>
<a id="pl.242.3"></a><var>242.3</var>revenue and commerce relative to surplus lines insurance;<br/>
<a id="pl.242.4"></a><var>242.4</var>    (4) communicate with organizations of agents, brokers, and admitted insurers with <br/>
<a id="pl.242.5"></a><var>242.5</var>respect to the proper use of the surplus lines market;<br/>
<a id="pl.242.6"></a><var>242.6</var>    (5) employ and retain persons necessary to carry out the duties of the association;<br/>
<a id="pl.242.7"></a><var>242.7</var>    (6) borrow money necessary to effect the purposes of the association;<br/>
<a id="pl.242.8"></a><var>242.8</var>    (7) enter contracts necessary to effect the purposes of the association;<br/>
<a id="pl.242.9"></a><var>242.9</var>    (8) provide other services to its members that are incidental or related to the <br/>
<a id="pl.242.10"></a><var>242.10</var>purposes of the association; and<br/>
<a id="pl.242.11"></a><var>242.11</var>    (9) take other actions reasonably required to implement the provisions of this section.<br/>
<a id="pl.242.12"></a><var>242.12</var>    Subd. 2. <b>Board of directors.</b> (a) The commissioner shall appoint an interim board <br/>
<a id="pl.242.13"></a><var>242.13</var>of five directors within 30 days of enactment of this section. The interim board must:<br/>
<a id="pl.242.14"></a><var>242.14</var>    (1) establish a plan of operation within 60 days after the appointment of the interim <br/>
<a id="pl.242.15"></a><var>242.15</var>board;<br/>
<a id="pl.242.16"></a><var>242.16</var>    (2) create a stamping office that is operational no later than December 31, 2008; and <br/>
<a id="pl.242.17"></a><var>242.17</var>    (3) conduct an election for a board of directors by the membership after December <br/>
<a id="pl.242.18"></a><var>242.18</var>31, 2008, and no later than one year after the appointment of the interim board.<br/>
<a id="pl.242.19"></a><var>242.19</var>    (b) Once the responsibilities of the interim board in paragraph (a) are fulfilled, the <br/>
<a id="pl.242.20"></a><var>242.20</var>association shall function through a board of directors composed of the following:<br/>
<a id="pl.242.21"></a><var>242.21</var>    (1) one director appointed by the commissioner of revenue;<br/>
<a id="pl.242.22"></a><var>242.22</var>    (2) one director appointed by the commissioner of commerce; and<br/>
<a id="pl.242.23"></a><var>242.23</var>    (3) at least five but no more than seven directors elected by the members. The <br/>
<a id="pl.242.24"></a><var>242.24</var>elected directors must be members of the association.<br/>
<a id="pl.242.25"></a><var>242.25</var>    Directors may serve until their successors are appointed or elected and their terms <br/>
<a id="pl.242.26"></a><var>242.26</var>are completed as outlined in the plan of operation.<br/>
<a id="pl.242.27"></a><var>242.27</var>    Subd. 3. <b>Plan of operation.</b> (a) The plan of operation shall provide for the <br/>
<a id="pl.242.28"></a><var>242.28</var>formation, operation, and governance of the association. The plan of operation must <br/>
<a id="pl.242.29"></a><var>242.29</var>provide for the election of a board of directors by the members of the association. The <br/>
<a id="pl.242.30"></a><var>242.30</var>board of directors shall elect officers as provided for in the plan of operation. The plan <br/>
<a id="pl.242.31"></a><var>242.31</var>of operation shall establish the manner of voting and may weigh each member's vote to <br/>
<a id="pl.242.32"></a><var>242.32</var>reflect the annual surplus lines insurance premium written by the member. Members <br/>
<a id="pl.242.33"></a><var>242.33</var>employed by the same or affiliated employers may consolidate their premiums written <br/>
<a id="pl.242.34"></a><var>242.34</var>and delegate an individual officer or partner to represent the member in the exercise of <br/>
<a id="pl.242.35"></a><var>242.35</var>association affairs, including service on the board of directors.<br/>
<a id="pl.243.1"></a><var>243.1</var>    (b) The plan of operation shall provide for an independent audit once each year of all <br/>
<a id="pl.243.2"></a><var>243.2</var>the books and records of the association and a report of such independent audit shall be <br/>
<a id="pl.243.3"></a><var>243.3</var>made to the board of directors, the commissioner of revenue, and the commissioner of <br/>
<a id="pl.243.4"></a><var>243.4</var>commerce, with a copy made available to each member to review at the association office.<br/>
<a id="pl.243.5"></a><var>243.5</var>    (c) The plan of operation and any amendments to the plan of operation shall be <br/>
<a id="pl.243.6"></a><var>243.6</var>submitted to the commissioner and shall be effective upon approval in writing by the <br/>
<a id="pl.243.7"></a><var>243.7</var>commissioner. The association and all members shall comply with the plan of operation or <br/>
<a id="pl.243.8"></a><var>243.8</var>any amendments to it. Failure to comply with the plan of operation or any amendments <br/>
<a id="pl.243.9"></a><var>243.9</var>shall constitute a violation for which the commissioner may issue an order requiring <br/>
<a id="pl.243.10"></a><var>243.10</var>discontinuance of the violation.<br/>
<a id="pl.243.11"></a><var>243.11</var>    (d) If the interim board of directors fails to submit a suitable plan of operation <br/>
<a id="pl.243.12"></a><var>243.12</var>within 60 days following the creation of the interim board, or if at any time thereafter the <br/>
<a id="pl.243.13"></a><var>243.13</var>association fails to submit required amendments to the plan, the commissioner may submit <br/>
<a id="pl.243.14"></a><var>243.14</var>to the association a plan of operation or amendments to the plan, which the association <br/>
<a id="pl.243.15"></a><var>243.15</var>must follow. The plan of operation or amendments submitted by the commissioner shall <br/>
<a id="pl.243.16"></a><var>243.16</var>continue in force until amended by the commissioner or superseded by a plan of operation <br/>
<a id="pl.243.17"></a><var>243.17</var>or amendment submitted by the association and approved by the commissioner. A plan <br/>
<a id="pl.243.18"></a><var>243.18</var>of operation or an amendment submitted by the commissioner constitutes an order of <br/>
<a id="pl.243.19"></a><var>243.19</var>the commissioner.<br/>
<a id="pl.243.20"></a><var>243.20</var>    Subd. 4. <b>Reporting requirement.</b> The association shall file with the commissioner:<br/>
<a id="pl.243.21"></a><var>243.21</var>    (1) a copy of its plan of operation and any amendments to it;<br/>
<a id="pl.243.22"></a><var>243.22</var>    (2) a current list of its members revised at least annually; and<br/>
<a id="pl.243.23"></a><var>243.23</var>    (3) the name and address of a member of the board residing in this state upon <br/>
<a id="pl.243.24"></a><var>243.24</var>whom notices or orders of the commissioner or processes issued at the direction of the <br/>
<a id="pl.243.25"></a><var>243.25</var>commissioner may be served.<br/>
<a id="pl.243.26"></a><var>243.26</var>    Subd. 5. <b>Examination.</b> The commissioner shall, at such times as deemed necessary, <br/>
<a id="pl.243.27"></a><var>243.27</var>make or cause to be made an examination of the association. The officers, managers, <br/>
<a id="pl.243.28"></a><var>243.28</var>agents, and employees of the association may be examined at any time, under oath, and <br/>
<a id="pl.243.29"></a><var>243.29</var>shall exhibit all books, records, accounts, documents, or agreements governing its method <br/>
<a id="pl.243.30"></a><var>243.30</var>of operation. The commissioner shall furnish a copy of the examination report to the <br/>
<a id="pl.243.31"></a><var>243.31</var>association. If the commissioner finds the association to be in violation of this section, the <br/>
<a id="pl.243.32"></a><var>243.32</var>commissioner may issue an order requiring the discontinuance of the violation.<br/>
<a id="pl.243.33"></a><var>243.33</var>    Subd. 6. <b>Immunity.</b> There shall be no liability on the part of and no causes of action <br/>
<a id="pl.243.34"></a><var>243.34</var>of any nature shall arise against the association, its directors, officers, agents, or employees <br/>
<a id="pl.244.1"></a><var>244.1</var>for any action taken or omitted by them in the performance of their powers and duties <br/>
<a id="pl.244.2"></a><var>244.2</var>under this section, absent gross negligence or willful misconduct.<br/>
<a id="pl.244.3"></a><var>244.3</var>    Subd. 7. <b>Stamping fee.</b> The services performed by the association shall be <br/>
<a id="pl.244.4"></a><var>244.4</var>funded by a stamping fee assessed for each premium-bearing document submitted to <br/>
<a id="pl.244.5"></a><var>244.5</var>the association. The stamping fee shall be established by the board of directors of the <br/>
<a id="pl.244.6"></a><var>244.6</var>association from time to time. The stamping fee shall be paid by the insured to the surplus <br/>
<a id="pl.244.7"></a><var>244.7</var>lines licensee and remitted electronically to the association by the surplus lines licensee.<br/>
<a id="pl.244.8"></a><var>244.8</var>    Subd. 8. <b>Data classification.</b> Unless otherwise classified by statute, a temporary <br/>
<a id="pl.244.9"></a><var>244.9</var>classification under section 13.06, or federal law, information obtained by the <br/>
<a id="pl.244.10"></a><var>244.10</var>commissioner from the association is public, except that any data identifying insureds is <br/>
<a id="pl.244.11"></a><var>244.11</var>private data on individuals or nonpublic data as defined in section 13.02, subdivisions <br/>
<a id="pl.244.12"></a><var>244.12</var>9 and 12.<br/>
<a id="pl.244.13"></a><var>244.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.244.14"></a><var>244.14</var>and applies to policies written or renewed on or after that date.<br/>
<br/>
<a id="bill.17.3.0"></a><a id="pl.244.15"></a><var>244.15</var>    Sec. 3. <b>[60A.2086] LICENSEE'S DUTY TO SUBMIT DOCUMENTS; PENALTY.</b><br/>
<a id="pl.244.16"></a><var>244.16</var>    Subdivision 1. <b>Submission of documents to the Surplus Lines Association </b><br/>
<a id="pl.244.17"></a><var>244.17</var><b>of Minnesota; certification.</b> (a) A surplus lines licensee shall submit every insurance <br/>
<a id="pl.244.18"></a><var>244.18</var>policy or contract issued under the licensee's license to the Surplus Lines Association of <br/>
<a id="pl.244.19"></a><var>244.19</var>Minnesota for recording and stamping. The submission and stamping must be effected <br/>
<a id="pl.244.20"></a><var>244.20</var>through electronic means. The submission must include:<br/>
<a id="pl.244.21"></a><var>244.21</var>    (1) the name of the insured;<br/>
<a id="pl.244.22"></a><var>244.22</var>    (2) a description and location of the insured property or risk;<br/>
<a id="pl.244.23"></a><var>244.23</var>    (3) the amount insured;<br/>
<a id="pl.244.24"></a><var>244.24</var>    (4) the gross premiums charged or returned;<br/>
<a id="pl.244.25"></a><var>244.25</var>    (5) the name of the surplus lines insurer from whom coverage has been procured;<br/>
<a id="pl.244.26"></a><var>244.26</var>    (6) the kind or kinds of insurance procured; and<br/>
<a id="pl.244.27"></a><var>244.27</var>    (7) the amount of premium subject to tax.<br/>
<a id="pl.244.28"></a><var>244.28</var>    (b) The submission of insurance policies or contracts to the Surplus Lines <br/>
<a id="pl.244.29"></a><var>244.29</var>Association of Minnesota constitutes a certification by the surplus lines licensee, or by the <br/>
<a id="pl.244.30"></a><var>244.30</var>insurance producer who presented the risk to the surplus lines licensee for placement as a <br/>
<a id="pl.244.31"></a><var>244.31</var>surplus lines risk, that the insurance policies or contracts were procured in accordance <br/>
<a id="pl.244.32"></a><var>244.32</var>with sections 60A.195 to 60A.209.<br/>
<a id="pl.244.33"></a><var>244.33</var>    Subd. 2. <b>Stamping requirement; penalty.</b> (a) It shall be unlawful for an insurance <br/>
<a id="pl.244.34"></a><var>244.34</var>agent, broker, or surplus lines licensee to deliver in this state any surplus lines insurance <br/>
<a id="pl.245.1"></a><var>245.1</var>policy or contract unless the insurance document is stamped by the association. A <br/>
<a id="pl.245.2"></a><var>245.2</var>licensee's failure to comply with the requirements of this subdivision shall not affect the <br/>
<a id="pl.245.3"></a><var>245.3</var>validity of the coverage.<br/>
<a id="pl.245.4"></a><var>245.4</var>    (b) Any insurance agent, broker, or surplus lines licensee who delivers in this state <br/>
<a id="pl.245.5"></a><var>245.5</var>any insurance policy or contract that has not been stamped by the association shall be <br/>
<a id="pl.245.6"></a><var>245.6</var>subject to a penalty payable to the commissioner as follows:<br/>
<a id="pl.245.7"></a><var>245.7</var>    (1) $50 for delivery of the first unstamped policy;<br/>
<a id="pl.245.8"></a><var>245.8</var>    (2) $250 for delivery of a second unstamped policy; and<br/>
<a id="pl.245.9"></a><var>245.9</var>    (3) $1,000 per policy for delivery of any additional unstamped policies.<br/>
<a id="pl.245.10"></a><var>245.10</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2009, and applies to <br/>
<a id="pl.245.11"></a><var>245.11</var>policies written or renewed after December 31, 2008.<br/>
<br/>
<a id="bill.17.4.0"></a><a id="pl.245.12"></a><var>245.12</var>    Sec. 4. <b>[62U.071] HEALTH INSURANCE CREDIT.</b><br/>
<a id="pl.245.13"></a><var>245.13</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.245.14"></a><var>245.14</var>have the meanings given them.<br/>
<a id="pl.245.15"></a><var>245.15</var>    (b) "Commissioner" means the commissioner of commerce.<br/>
<a id="pl.245.16"></a><var>245.16</var>    (c) "Employee" means an employee currently on an employer's payroll other than a <br/>
<a id="pl.245.17"></a><var>245.17</var>retiree or disabled former employee.<br/>
<a id="pl.245.18"></a><var>245.18</var>    (d) "Employer" means a person, firm, corporation, partnership, association, business <br/>
<a id="pl.245.19"></a><var>245.19</var>trust, or other entity employing one or more persons, including a political subdivision of <br/>
<a id="pl.245.20"></a><var>245.20</var>the state, filing payroll tax information on such employed person or persons.<br/>
<a id="pl.245.21"></a><var>245.21</var>    (e) "Section 125 plan" means a cafeteria or premium-only plan under section 125 of <br/>
<a id="pl.245.22"></a><var>245.22</var>the Internal Revenue Code that allows employees to pay for health insurance premiums <br/>
<a id="pl.245.23"></a><var>245.23</var>with pretax dollars.<br/>
<a id="pl.245.24"></a><var>245.24</var>    (f) "Small employer" means an employer with two to 50 employees.<br/>
<a id="pl.245.25"></a><var>245.25</var>    Subd. 2. <b>Tax credits allowed; generally.</b> (a) Upon application, the commissioner <br/>
<a id="pl.245.26"></a><var>245.26</var>shall allow tax credits to eligible small employers as incentives for the employers to <br/>
<a id="pl.245.27"></a><var>245.27</var>provide section 125 plans or to encourage their employees to participate in existing section <br/>
<a id="pl.245.28"></a><var>245.28</var>125 plans. The applications for the credits must be made in the form and manner and at <br/>
<a id="pl.245.29"></a><var>245.29</var>the times prescribed by the commissioner.<br/>
<a id="pl.245.30"></a><var>245.30</var>    (b) The credits allowed under this section must not exceed the liability for tax paid <br/>
<a id="pl.245.31"></a><var>245.31</var>by the employer. The liability for tax includes tax paid by the employer under chapter <br/>
<a id="pl.245.32"></a><var>245.32</var>290, ad valorem property tax on property used in the conduct of their trade or business, <br/>
<a id="pl.245.33"></a><var>245.33</var>and the insurance premiums tax under chapter 297I. The commissioner must verify that <br/>
<a id="pl.245.34"></a><var>245.34</var>the amount of the credit paid under this section does not exceed the employer's liability <br/>
<a id="pl.245.35"></a><var>245.35</var>for tax paid in the previous calendar year.<br/>
<a id="pl.246.1"></a><var>246.1</var>    Subd. 3. <b>Establishment credit.</b> (a) The commissioner shall pay a tax credit to <br/>
<a id="pl.246.2"></a><var>246.2</var>eligible small employers that establish section 125 plans to the extent that credit authority <br/>
<a id="pl.246.3"></a><var>246.3</var>is available under subdivision 5 for the fiscal year. An eligible small employer is eligible <br/>
<a id="pl.246.4"></a><var>246.4</var>for a credit under this subdivision only once.<br/>
<a id="pl.246.5"></a><var>246.5</var>    (b) To be eligible for a credit, a small employer must: <br/>
<a id="pl.246.6"></a><var>246.6</var>    (1) not have offered health insurance to employees through a group health insurance <br/>
<a id="pl.246.7"></a><var>246.7</var>plan, as defined in section 62A.10, or through a self-insured plan, as defined in section <br/>
<a id="pl.246.8"></a><var>246.8</var>62E.02, in the 12 months before applying for a tax credit under this subdivision;<br/>
<a id="pl.246.9"></a><var>246.9</var>    (2) have established a section 125 plan within 90 days before applying for a tax <br/>
<a id="pl.246.10"></a><var>246.10</var>credit under this subdivision, and must not have offered a section 125 plan to employees <br/>
<a id="pl.246.11"></a><var>246.11</var>for at least a nine-month period before the establishment of the section 125 plan under <br/>
<a id="pl.246.12"></a><var>246.12</var>this subdivision; and<br/>
<a id="pl.246.13"></a><var>246.13</var>    (3) certify to the commissioner that the employer has established a section 125 plan <br/>
<a id="pl.246.14"></a><var>246.14</var>and meets the requirements of 2008 S.F. 3780, article 4, section 10, subdivisions 2 and <br/>
<a id="pl.246.15"></a><var>246.15</var>3, if enacted.<br/>
<a id="pl.246.16"></a><var>246.16</var>    (c) The amount of the credit under this subdivision equals the lesser of:<br/>
<a id="pl.246.17"></a><var>246.17</var>    (1) the employer's actual cost to establish the section 125 plan; or<br/>
<a id="pl.246.18"></a><var>246.18</var>    (2) $350.<br/>
<a id="pl.246.19"></a><var>246.19</var>    Subd. 4. <b>Participation credit.</b> (a) The commissioner shall pay a tax credit to <br/>
<a id="pl.246.20"></a><var>246.20</var>eligible small employers with section 125 plans. The amount of the credit equals the <br/>
<a id="pl.246.21"></a><var>246.21</var>least of the following amounts:<br/>
<a id="pl.246.22"></a><var>246.22</var>    (1) 50 percent of the amount the employer spends during the calendar year for <br/>
<a id="pl.246.23"></a><var>246.23</var>incentives to encourage participation by the employer's nonparticipating employees in <br/>
<a id="pl.246.24"></a><var>246.24</var>the employer's section 125 plan;<br/>
<a id="pl.246.25"></a><var>246.25</var>    (2) $200 for each nonparticipating employee who begins participating in the <br/>
<a id="pl.246.26"></a><var>246.26</var>employer's section 125 plan; or<br/>
<a id="pl.246.27"></a><var>246.27</var>    (3) the amount of credit certificates the employer received for the calendar year.<br/>
<a id="pl.246.28"></a><var>246.28</var>    (b) An eligible employer is a small employer that:<br/>
<a id="pl.246.29"></a><var>246.29</var>    (1) offers a section 125 plan to its employees;<br/>
<a id="pl.246.30"></a><var>246.30</var>    (2) has five percent or more of its employees not participating in the section 125 plan <br/>
<a id="pl.246.31"></a><var>246.31</var>during the quarter prior to the application for the tax credit; and<br/>
<a id="pl.246.32"></a><var>246.32</var>    (3) pays average compensation to its nonparticipating employees of no more <br/>
<a id="pl.246.33"></a><var>246.33</var>than the maximum annual income of an individual who is eligible to participate in the <br/>
<a id="pl.246.34"></a><var>246.34</var>MinnesotaCare program under chapter 256L.<br/>
<a id="pl.246.35"></a><var>246.35</var>    (c) For purposes of this subdivision, "incentives to encourage participation" includes <br/>
<a id="pl.246.36"></a><var>246.36</var>paying an increased employer share of the premium or other costs of the insurance, <br/>
<a id="pl.247.1"></a><var>247.1</var>contributing to the employee's health savings account, or taking other measures that the <br/>
<a id="pl.247.2"></a><var>247.2</var>commissioner considers likely to foster higher rates of participation; and "nonparticipating <br/>
<a id="pl.247.3"></a><var>247.3</var>employee" means an employee who is not participating in the section 125 plan, and who is <br/>
<a id="pl.247.4"></a><var>247.4</var>not otherwise covered by health insurance other than MinnesotaCare.<br/>
<a id="pl.247.5"></a><var>247.5</var>    Subd. 5. <b>Credits and credit certificates.</b> (a) The commissioner may transfer <br/>
<a id="pl.247.6"></a><var>247.6</var>all or part of the appropriation provided in 2008 S.F. 3780, article 4, section 10, <br/>
<a id="pl.247.7"></a><var>247.7</var>subdivision 4, if enacted, to provide tax credits under subdivision 3. The commissioner <br/>
<a id="pl.247.8"></a><var>247.8</var>shall allow tax credits under subdivision 3 to applicants on a first-come-first-served <br/>
<a id="pl.247.9"></a><var>247.9</var>basis and the maximum amount of credits allowed for each fiscal year is limited to the <br/>
<a id="pl.247.10"></a><var>247.10</var>amount transferred from the appropriation provided in S.F. 3780, article 4, section 10, <br/>
<a id="pl.247.11"></a><var>247.11</var>subdivision 4, if enacted. If applications for credits exceed the allowance for the fiscal <br/>
<a id="pl.247.12"></a><var>247.12</var>year, the commissioner shall hold the applications and award the credits from the amount <br/>
<a id="pl.247.13"></a><var>247.13</var>appropriated for that purpose in the next fiscal year. If the commissioner does not transfer <br/>
<a id="pl.247.14"></a><var>247.14</var>any of the appropriation provided in 2008 S.F. 3780, article 4, section 10, subdivision 4, if <br/>
<a id="pl.247.15"></a><var>247.15</var>enacted, no tax credits are allowed under subdivision 3.<br/>
<a id="pl.247.16"></a><var>247.16</var>    (b) Upon application, the commissioner shall award credit certificates to eligible <br/>
<a id="pl.247.17"></a><var>247.17</var>employers for credits under subdivision 4. The maximum amount of credit certificates <br/>
<a id="pl.247.18"></a><var>247.18</var>is limited to $730,000 per fiscal year. The commissioner shall award the certificates to <br/>
<a id="pl.247.19"></a><var>247.19</var>eligible employers on a first-come-first-served basis, and certificates will apply to the <br/>
<a id="pl.247.20"></a><var>247.20</var>calendar year in which the employer intends to provide incentives for nonparticipating <br/>
<a id="pl.247.21"></a><var>247.21</var>employees to begin participating in the employer's section 125 plan. No employer may be <br/>
<a id="pl.247.22"></a><var>247.22</var>awarded more than $5,000 in credit certificates. Following the close of the calendar year, <br/>
<a id="pl.247.23"></a><var>247.23</var>employers who have been awarded certificates must report to the commissioner on the <br/>
<a id="pl.247.24"></a><var>247.24</var>amount spent for incentives to encourage participation by nonparticipating employees, <br/>
<a id="pl.247.25"></a><var>247.25</var>and the number of nonparticipating employees who became participating employees, and <br/>
<a id="pl.247.26"></a><var>247.26</var>the commissioner must allow the appropriate credit amount as provided in subdivision 4, <br/>
<a id="pl.247.27"></a><var>247.27</var>paragraph (a).<br/>
<a id="pl.247.28"></a><var>247.28</var>    (c) The commissioner may transfer credit authority between the authorizations in <br/>
<a id="pl.247.29"></a><var>247.29</var>paragraphs (a) and (b) based on the applications for the credits under subdivisions 3 and 4 <br/>
<a id="pl.247.30"></a><var>247.30</var>or on other factors so that in the commissioner's opinion the allocation between the two <br/>
<a id="pl.247.31"></a><var>247.31</var>credits will provide a more effective incentive to expand health care coverage.<br/>
<a id="pl.247.32"></a><var>247.32</var>    Subd. 6. <b>Appropriation.</b> The amount necessary to award credits under subdivision <br/>
<a id="pl.247.33"></a><var>247.33</var>5, paragraph (b), is appropriated from the general fund to the commissioner of commerce <br/>
<a id="pl.247.34"></a><var>247.34</var>in fiscal year 2009.<br/>
<a id="pl.247.35"></a><var>247.35</var><b>EFFECTIVE DATE.</b>This section is effective for fiscal year 2009.<br/>
<br/>
<a id="bill.17.5.0"></a><a id="pl.248.1"></a><var>248.1</var>    Sec. 5. Laws 2006, chapter 269, section 2, is amended to read:<br/>
<a id="pl.248.2"></a><var>248.2</var>    Sec. 2. <b>DEDICATION FEE.</b><br/>
<a id="pl.248.3"></a><var>248.3</var>    The Minneapolis Park and Recreation Board and the Minneapolis City Council <br/>
<a id="pl.248.4"></a><var>248.4</var>may jointly exercise the powers conferred under Minnesota Statutes, section 
         <statute_ref>462.358</statute_ref>, <br/>
<a id="pl.248.5"></a><var>248.5</var>with respect to requiring that a reasonable portion of land be dedicated to the public <br/>
<a id="pl.248.6"></a><var>248.6</var>or imposing a dedication fee on new housing units and new commercial and industrial <br/>
<a id="pl.248.7"></a><var>248.7</var>development in the city, wherever located, for public parks, playgrounds, recreational <br/>
<a id="pl.248.8"></a><var>248.8</var>facilities, wetlands, trails, or open space. The dedication of land or dedication fee must <br/>
<a id="pl.248.9"></a><var>248.9</var>be imposed by an ordinance jointly enacted by the park board and the city council.  The <br/>
<a id="pl.248.10"></a><var>248.10</var>ordinance may exclude senior housing and affordable housing from paying the fee or the <br/>
<a id="pl.248.11"></a><var>248.11</var>dedication of land. The provisions of Minnesota Statutes, section 
         <statute_ref>462.358, subdivisions <br/>
<a id="pl.248.12"></a><var>248.12</var>2b
         </statute_ref>, paragraph (b), and 2c, apply to the imposition, application, and use of the dedication of <br/>
<a id="pl.248.13"></a><var>248.13</var>land or the dedication fee.<br/>
<a id="pl.248.14"></a><var>248.14</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the Minneapolis <br/>
<a id="pl.248.15"></a><var>248.15</var>Park and Recreation Board and the Minneapolis City Council with Minnesota Statutes, <br/>
<a id="pl.248.16"></a><var>248.16</var>section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.17.6.0"></a><a id="pl.248.17"></a><var>248.17</var>    Sec. 6. <b>DATA UPDATE.</b><br/>
<a id="pl.248.18"></a><var>248.18</var>    The commissioner of revenue must continue to maintain, update, and make available <br/>
<a id="pl.248.19"></a><var>248.19</var>the information required under Laws 1987, chapter 268, article 7, section 1, subdivision <br/>
<a id="pl.248.20"></a><var>248.20</var>6, paragraph (b). The commissioner must provide the most complete and current data <br/>
<a id="pl.248.21"></a><var>248.21</var>available, when requested, to the chairs of the senate and house of representatives <br/>
<a id="pl.248.22"></a><var>248.22</var>committees on taxes.<br/>
<br/>
<a id="bill.17.7.0"></a><a id="pl.248.23"></a><var>248.23</var>    Sec. 7. <b>APPROPRIATIONS.</b><br/>
<a id="pl.248.24"></a><var>248.24</var>    Subdivision 1. <b>Department of Revenue; assessment assistance.</b> $100,000 is <br/>
<a id="pl.248.25"></a><var>248.25</var>appropriated to the commissioner of revenue from the general fund for fiscal year 2009 to <br/>
<a id="pl.248.26"></a><var>248.26</var>assist local assessors in valuing industrial special-use industrial properties.<br/>
<a id="pl.248.27"></a><var>248.27</var>    Subd. 2. <b>Department of Revenue; onetime appropriations.</b> (a) $15,000 is <br/>
<a id="pl.248.28"></a><var>248.28</var>appropriated to the commissioner of revenue to administer the study of the property tax <br/>
<a id="pl.248.29"></a><var>248.29</var>exemption for institutions of purely public charity.<br/>
<a id="pl.248.30"></a><var>248.30</var>    (b) $200,000 is appropriated to the commissioner of revenue to prepare the database <br/>
<a id="pl.248.31"></a><var>248.31</var>required in section 5 matching homeowners' property, property tax, income, and income <br/>
<a id="pl.248.32"></a><var>248.32</var>tax information.<br/>
<a id="pl.248.33"></a><var>248.33</var>    (c) The appropriations under this subdivision are onetime appropriations from the <br/>
<a id="pl.248.34"></a><var>248.34</var>general fund for fiscal year 2009 and are not added to the agency's base budget.<br/>
<a id="pl.249.1"></a><var>249.1</var>    Subd. 3. <b>Department of Administration.</b> $60,000 is appropriated from the general <br/>
<a id="pl.249.2"></a><var>249.2</var>fund in fiscal year 2009 to the commissioner of administration to pay the cost incurred by <br/>
<a id="pl.249.3"></a><var>249.3</var>the Land Management Information Center to prepare township acreage data. $50,000 of <br/>
<a id="pl.249.4"></a><var>249.4</var>this appropriation is onetime and is not added to the agency's base budget; $10,000 of this <br/>
<a id="pl.249.5"></a><var>249.5</var>appropriation is added to the agency's budget."<br/>
<a id="pl.249.6"></a><var>249.6</var>Delete the title and insert:<br/>

<a id="pl.249.9"></a><var>249.9</var>property tax refund; making policy, technical, administrative, enforcement, <br/>
<a id="pl.249.10"></a><var>249.10</var>collection, refund, clarifying, and other changes to income, franchise, property, <br/>
<a id="pl.249.11"></a><var>249.11</var>sales and use, minerals, aggregate, motor vehicle, wheelage, mortgage, deed, <br/>
<a id="pl.249.12"></a><var>249.12</var>cigarette and tobacco, gasoline, and estate taxes, and other taxes and tax-related <br/>
<a id="pl.249.13"></a><var>249.13</var>provisions; providing for aids to local governments; changing, eliminating, <br/>
<a id="pl.249.14"></a><var>249.14</var>and providing property tax exemptions and credits; modifying job opportunity <br/>
<a id="pl.249.15"></a><var>249.15</var>building zone program; modifying green acres; providing aggregate resource <br/>
<a id="pl.249.16"></a><var>249.16</var>preservation property tax law; modifying levies, property valuation procedures, <br/>
<a id="pl.249.17"></a><var>249.17</var>homestead provisions, property tax classes, and class rates; providing for and <br/>
<a id="pl.249.18"></a><var>249.18</var>modifying sales tax exemptions; exempting two-wheel, motorized vehicles <br/>
<a id="pl.249.19"></a><var>249.19</var>from wheelage tax; providing credits; providing for additional financing of <br/>
<a id="pl.249.20"></a><var>249.20</var>metropolitan area transit and paratransit capital expenditures; authorizing <br/>
<a id="pl.249.21"></a><var>249.21</var>issuance of certain obligations; modifying provision governing bonding for <br/>
<a id="pl.249.22"></a><var>249.22</var>county libraries; changing and authorizing powers, duties, and requirements <br/>
<a id="pl.249.23"></a><var>249.23</var>of local governments and authorities and state departments or agencies; <br/>
<a id="pl.249.24"></a><var>249.24</var>modifying, extending, and authorizing certain tax increment financing districts; <br/>
<a id="pl.249.25"></a><var>249.25</var>authorizing and modifying local sales taxes; providing federal updates; changing <br/>
<a id="pl.249.26"></a><var>249.26</var>accelerated sales tax; creating Surplus Lines Association of Minnesota; <br/>
<a id="pl.249.27"></a><var>249.27</var>changing provisions related to data practices and debt collection; requiring <br/>
<a id="pl.249.28"></a><var>249.28</var>studies; providing appointments; providing levy limits; modifying taxation <br/>
<a id="pl.249.29"></a><var>249.29</var>of foreign operating corporations; requiring a state review and approval of a <br/>
<a id="pl.249.30"></a><var>249.30</var>local economic development project; modifying park board fees; modifying <br/>
<a id="pl.249.31"></a><var>249.31</var>certain tax districts; providing for sale of forest lands; prohibiting imposition <br/>
<a id="pl.249.32"></a><var>249.32</var>of new local sales tax; providing income tax credit for military service; <br/>
<a id="pl.249.33"></a><var>249.33</var>providing economic development powers and incentives; providing health <br/>
<a id="pl.249.34"></a><var>249.34</var>insurance credit; appropriating money;amending Minnesota Statutes 2006, <br/>
<a id="pl.249.35"></a><var>249.35</var>sections 13.51, subdivision 3; 13.585, subdivision 5; 16D.02, subdivisions <br/>
<a id="pl.249.36"></a><var>249.36</var>3, 6; 16D.04, subdivision 2, as amended; 60A.196; 116J.993, subdivision 3; <br/>
<a id="pl.249.37"></a><var>249.37</var>116J.994, subdivisions 2, 5, 8; 126C.41, subdivision 2; 163.051, subdivision <br/>
<a id="pl.249.38"></a><var>249.38</var>1; 168.012, subdivision 1, by adding a subdivision; 168.013, subdivision 1f; <br/>
<a id="pl.249.39"></a><var>249.39</var>168A.03, subdivision 1; 169.01, by adding a subdivision; 169.781, subdivisions <br/>
<a id="pl.249.40"></a><var>249.40</var>1, as amended, 2, as amended; 270A.08, subdivision 1; 270B.15; 270C.33, <br/>
<a id="pl.249.41"></a><var>249.41</var>subdivision 5; 270C.56, subdivision 1, as amended; 270C.85, subdivision 2; <br/>
<a id="pl.249.42"></a><var>249.42</var>272.02, subdivisions 13, 20, 21, 27, 31, 38, 49, 55, 84, by adding subdivisions; <br/>
<a id="pl.249.43"></a><var>249.43</var>272.03, subdivision 3, by adding a subdivision; 273.11, subdivisions 8, 14a, 14b, <br/>
<a id="pl.249.44"></a><var>249.44</var>by adding a subdivision; 273.111, subdivisions 3, as amended, 4, 8, 9, 11, 11a, <br/>
<a id="pl.249.45"></a><var>249.45</var>14, by adding subdivisions; 273.121, as amended; 273.124, subdivisions 1, 6, <br/>
<a id="pl.249.46"></a><var>249.46</var>13, as amended, 21; 273.128, subdivision 1, as amended; 273.13, subdivisions <br/>
<a id="pl.249.47"></a><var>249.47</var>22, as amended, 23, as amended, 25, as amended, 33, 34, as added; 273.1384, <br/>
<a id="pl.249.48"></a><var>249.48</var>subdivision 2; 273.19, subdivision 1; 274.014, subdivision 3; 274.14; 275.065, <br/>
<a id="pl.249.49"></a><var>249.49</var>subdivision 8, by adding a subdivision; 275.70, subdivision 5, by adding a <br/>
<a id="pl.249.50"></a><var>249.50</var>subdivision; 275.71; 275.74, subdivision 2; 276.04, subdivision 2, as amended; <br/>
<a id="pl.249.51"></a><var>249.51</var>282.08; 287.20, subdivisions 3a, 9, by adding a subdivision; 289A.12, by adding <br/>
<a id="pl.249.52"></a><var>249.52</var>a subdivision; 289A.18, subdivision 1, as amended; 289A.19, subdivision <br/>
<a id="pl.249.53"></a><var>249.53</var>2, by adding a subdivision; 289A.20, subdivision 4, as amended; 289A.55, <br/>
<a id="pl.249.54"></a><var>249.54</var>by adding a subdivision; 289A.60, subdivision 15, as amended, by adding a <br/>
<a id="pl.250.1"></a><var>250.1</var>subdivision; 290.01, subdivisions 6b, 19c, as amended, 19d, as amended; 290.06, <br/>
<a id="pl.250.2"></a><var>250.2</var>subdivision 33, as amended, by adding a subdivision; 290.0677, subdivisions <br/>
<a id="pl.250.3"></a><var>250.3</var>1, as amended, 2, 3, by adding a subdivision; 290.068, subdivision 3; 290.07, <br/>
<a id="pl.250.4"></a><var>250.4</var>subdivision 1; 290.091, subdivision 2, as amended; 290.191, subdivisions 5, <br/>
<a id="pl.250.5"></a><var>250.5</var>6; 290.21, subdivision 4; 290.92, subdivisions 26, 31, as added; 290A.04, <br/>
<a id="pl.250.6"></a><var>250.6</var>subdivision 2; 290B.04, subdivision 1; 291.03, subdivision 1, by adding a <br/>
<a id="pl.250.7"></a><var>250.7</var>subdivision; 295.50, subdivision 4; 295.52, subdivision 4, as amended; 295.53, <br/>
<a id="pl.250.8"></a><var>250.8</var>subdivision 4a; 296A.07, subdivision 4; 296A.08, subdivision 3; 296A.16, <br/>
<a id="pl.250.9"></a><var>250.9</var>subdivision 2; 297A.61, subdivisions 22, 29; 297A.665, as amended; 297A.67, <br/>
<a id="pl.250.10"></a><var>250.10</var>subdivisions 7, as amended, 28; 297A.70, subdivision 8; 297A.71, subdivision <br/>
<a id="pl.250.11"></a><var>250.11</var>23, by adding a subdivision; 297A.75; 297A.99, subdivision 1, as amended; <br/>
<a id="pl.250.12"></a><var>250.12</var>297A.995, subdivision 10, by adding subdivisions; 297B.01, subdivision 7, by <br/>
<a id="pl.250.13"></a><var>250.13</var>adding a subdivision; 297B.03; 297F.01, subdivision 8; 297F.09, subdivision <br/>
<a id="pl.250.14"></a><var>250.14</var>10, as amended; 297F.21, subdivision 1; 297G.01, subdivision 9; 297G.09, <br/>
<a id="pl.250.15"></a><var>250.15</var>subdivision 9, as amended; 297H.09; 297I.05, subdivision 12; 298.01, by adding <br/>
<a id="pl.250.16"></a><var>250.16</var>a subdivision; 298.22, subdivisions 2, 5a, as added, by adding a subdivision; <br/>
<a id="pl.250.17"></a><var>250.17</var>298.24, subdivision 1, as amended; 298.25, as amended; 298.28, subdivisions <br/>
<a id="pl.250.18"></a><var>250.18</var>3, 9d, as added, 12; 298.292, subdivision 2, as amended; 298.405, subdivision <br/>
<a id="pl.250.19"></a><var>250.19</var>1; 298.75, subdivisions 1, as amended, 2, 6, 7, as amended; 365.243, by adding <br/>
<a id="pl.250.20"></a><var>250.20</var>a subdivision; 365A.095, as amended; 383A.80, subdivision 4; 383A.81, <br/>
<a id="pl.250.21"></a><var>250.21</var>subdivisions 1, 2; 383B.80, subdivision 4; 383B.81, subdivision 2; 383E.20; <br/>
<a id="pl.250.22"></a><var>250.22</var>429.101, subdivision 1; 469.033, subdivision 6; 469.040, subdivision 4; <br/>
<a id="pl.250.23"></a><var>250.23</var>469.174, subdivision 10b; 469.177, subdivision 1c, by adding a subdivision; <br/>
<a id="pl.250.24"></a><var>250.24</var>469.1813, subdivision 8; 469.319; 469.3201; 473.39, by adding a subdivision; <br/>
<a id="pl.250.25"></a><var>250.25</var>474A.047, subdivision 1; 477A.011, subdivisions 34, 36, as amended, by <br/>
<a id="pl.250.26"></a><var>250.26</var>adding subdivisions; 477A.0124, subdivision 5; 477A.013, subdivisions 8, <br/>
<a id="pl.250.27"></a><var>250.27</var>as amended, 9, as amended; 477A.03; Minnesota Statutes 2007 Supplement, <br/>
<a id="pl.250.28"></a><var>250.28</var>sections 115A.1314, subdivision 2; 268.19, subdivision 1, as amended; <br/>
<a id="pl.250.29"></a><var>250.29</var>273.1231, subdivision 7, by adding a subdivision; 273.1232, subdivision 1; <br/>
<a id="pl.250.30"></a><var>250.30</var>273.1233, subdivisions 1, 3; 273.1234; 273.1235, subdivisions 1, 3; 273.124, <br/>
<a id="pl.250.31"></a><var>250.31</var>subdivision 14, as amended; 273.1393; 290.01, subdivision 19b, as amended; <br/>
<a id="pl.250.32"></a><var>250.32</var>297A.70, subdivision 3; 298.227; Laws 1991, chapter 291, article 8, section 27, <br/>
<a id="pl.250.33"></a><var>250.33</var>subdivisions 3, as amended, 4, as amended; Laws 1995, chapter 264, article <br/>
<a id="pl.250.34"></a><var>250.34</var>5, section 46, subdivision 2; Laws 1998, chapter 389, article 8, section 45, <br/>
<a id="pl.250.35"></a><var>250.35</var>subdivision 3; Laws 1999, chapter 243, article 4, section 18, subdivisions 1, 3, <br/>
<a id="pl.250.36"></a><var>250.36</var>4; Laws 2003, chapter 127, article 10, section 31, subdivision 1; Laws 2006, <br/>
<a id="pl.250.37"></a><var>250.37</var>chapter 259, article 10, section 14, subdivision 1; Laws 2006, chapter 269, <br/>
<a id="pl.250.38"></a><var>250.38</var>section 2; Laws 2008, chapter 154, article 2, sections 11; 27; article 3, section <br/>
<a id="pl.250.39"></a><var>250.39</var>3; article 8, section 14; article 9, sections 23; 24; proposing coding for new law <br/>
<a id="pl.250.40"></a><var>250.40</var>in Minnesota Statutes, chapters 60A; 116J; 169; 272; 273; 275; 469; 477A; <br/>
<a id="pl.250.41"></a><var>250.41</var>proposing coding for new law as Minnesota Statutes, chapter 62U; repealing <br/>
<a id="pl.250.42"></a><var>250.42</var>Minnesota Statutes 2006, sections 272.027, subdivision 3; 273.11, subdivision <br/>
<a id="pl.250.43"></a><var>250.43</var>14; 273.111, subdivision 6; 298.405, subdivisions 2, 3, 4; 477A.014, subdivision <br/>
<a id="pl.250.44"></a><var>250.44</var>5; Minnesota Statutes 2007 Supplement, section 477A.014, subdivision 4; Laws <br/>
<a id="pl.250.45"></a><var>250.45</var>2005, First Special Session chapter 3, article 5, section 24; Minnesota Rules, <br/>
<a id="pl.250.46"></a><var>250.46</var>parts 8031.0100, subpart 3; 8093.2100."<br/>
         		We request the adoption of this report and repassage of the bill.House Conferees: (Signed) Ann Lenczewski, Paul Marquart, Jim Davnie, Debra Hilstrom, Lyle KoenenSenate Conferees: (Signed) Thomas M. Bakk, Rod Skoe, Dan Larson, D. Scott Dibble, Mee Moua
         <table>
<col width="50px"/>
<col width="252px"/>
<col width="42px"/>
<col width="252px"/>
<tr>
<td><a id="pl.251.1"></a><var>251.1</var><br/>
</td>
<td align="left" colspan="3" valign="bottom">We request the adoption of this report and repassage of the bill.<br/>
</td>
</tr>
<tr>
<td><a id="pl.251.2"></a><var>251.2</var><br/>
</td>
<td align="left" valign="bottom">House Conferees:<span width="2em"></span>(Signed)<br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
</tr>
<tr>
<td><a id="pl.251.3"></a><var>251.3</var><br/>
</td>
<td align="left" valign="bottom"><span>
                     							.....
                     						</span><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.251.4"></a><var>251.4</var><br/>
</td>
<td align="left" valign="bottom">Ann Lenczewski<br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">Paul Marquart<br/>
</td>
</tr>
<tr>
<td><a id="pl.251.5"></a><var>251.5</var><br/>
</td>
<td align="left" valign="bottom"><span>
                     							.....
                     						</span><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.251.6"></a><var>251.6</var><br/>
</td>
<td align="left" valign="bottom">Jim Davnie<br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">Debra Hilstrom<br/>
</td>
</tr>
<tr>
<td><a id="pl.251.7"></a><var>251.7</var><br/>
</td>
<td align="left" valign="bottom"><span>
                     							.....
                     						</span><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
</tr>
<tr>
<td><a id="pl.251.8"></a><var>251.8</var><br/>
</td>
<td align="left" valign="bottom">Lyle Koenen<br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
</tr>
<tr>
<td><a id="pl.251.9"></a><var>251.9</var><br/>
</td>
<td align="left" valign="bottom">Senate Conferees:<span width="2em"></span>(Signed)<br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
</tr>
<tr>
<td><a id="pl.251.10"></a><var>251.10</var><br/>
</td>
<td align="left" valign="bottom"><span>
                     							.....
                     						</span><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.251.11"></a><var>251.11</var><br/>
</td>
<td align="left" valign="bottom">Thomas M. Bakk<br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">Rod Skoe<br/>
</td>
</tr>
<tr>
<td><a id="pl.251.12"></a><var>251.12</var><br/>
</td>
<td align="left" valign="bottom"><span>
                     							.....
                     						</span><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.251.13"></a><var>251.13</var><br/>
</td>
<td align="left" valign="bottom">Dan Larson<br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom">D. Scott Dibble<br/>
</td>
</tr>
<tr>
<td><a id="pl.251.14"></a><var>251.14</var><br/>
</td>
<td align="left" valign="bottom"><span>
                     							.....
                     						</span><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
</tr>
<tr>
<td><a id="pl.251.15"></a><var>251.15</var><br/>
</td>
<td align="left" valign="bottom">Mee Moua<br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
</tr>
</table>