2E Relating to taxation

ARTICLE 1 - AIDS TO LOCAL GOVERNMENTS

Modifying the distribution of local government aid (LGA); specifying a city
revenue need minimum; modifying the city aid base and increasing the aid base for certain cities; defining small city aid base, city jobs base, out of home placement aid and town aids; modifying county tax base equalization aid and transition aid, city formula aid, city aid distribution, county aids; providing a 2009 aid adjustment; increasing the cities appropriation limit; providing an inflation adjustment for municipal (city) aid and county need aid distributions; providing a distribution of payments in lieu of tax for land included in state parks located on Lake Vermilion; authorizing first class metropolitan cities in receipt of certain excessive aid to expend excess on debt obligations related to public facilities or neighborhood revitalization; requiring a legislative study of local government aids and requiring a report by a certain date

ARTICLE 2 - PROPERTY TAXES

Modifying the school district referendum market value tax base; extending school districts levy authority for retired employee health benefits under condition of effective sunset clause; authorizing utilities to recover the cost of higher property taxes due to class rate changes through a rate adjustment; exempting noncommercial seasonal recreational or noncommercial seasonal recreation residential lands county, city and town leased lands from property taxation; extending the personal property electric generation facilities construction commencement and biomass electric generation facility construction commencement deadlines for property tax exemption status; exempting state trust lands from the personal property definition; modifying the agricultural property tax law; establishing an aggregate resource preservation property tax program for the valuation and classification of property containing certain unmined commercial aggregate deposit; modifying the requirements for open space property tax treatment; adding soccer as an acceptable use; providing a tax credit for property in bovine tuberculosis management zones; extending homestead classification to certain property used for nonhomestead purposes; modifying class 2b property homestead classification eligibility; modifying class 3 personal property part of electric generation systems; increasing the property tax class rates on certain utility property; modifying the class 4b, 4bb and 4c property classifications and adding certain restaurants to the 4c classification; including bovine tuberculosis eradication credit in the net property tax computation; subjecting to taxation federal and state government fee lands leased or rented for noncommercial seasonal recreational use or noncommercial seasonal recreational residential use; modifying the state general levy and removing seasonal residential recreation property from the levy; requiring county auditors to use the previous year final levy upon taxing authority proposed certification failure by due date; authorizing sanctions for property tax petitioners contesting the valuation of income producing property; providing for payment of property tax refunds to counties for delinquent property taxes; authorizing counties to levy taxes on property located within unorganized territories for the purposes of funding fire protection and first responder services; permitting a town board to vote to refund any surplus or service charge upon the removal of a subordinate service district; changing the transit taxing district definition; modifying airport tax levy authority; regulating assessment of properties of purely public charities; classifying the Comfort Lake Forest Lake watershed district as a watershed management organization in Chisago and Washington counties for the management of surface water; providing for St. Louis county debt services for sanitary district bonds; requiring the commissioner of revenue to study agricultural property valuation and report to the legislature by a certain date; repealing the property tax exemption for electric power plant personal property, taconite and steel mill, the seasonal residential recreational tax capacity, seasonal residential recreational property due dates and penalties and additions to the transit taxing district

ARTICLE 3 - SENIOR CITIZENS PROPERTY TAX CAP

Relating to property taxation; establishing a maximum homestead property tax (cap) program, defining terms, specifying participation qualifications, including age, income and length of residence qualifiers, providing an application procedure, providing for excess income certification procedures by commissioner of revenue; providing for tax calculation, tax rate and levy by county auditor; providing for termination of program participation

ARTICLE 4 - INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES

Changing the foreign operating corporation definition for taxation purposes; providing an income tax subtraction for the amount of national service education awards received from the national service trust for service in an approved AmeriCorps national service program; under corporate federal taxable income provisions changing certain pollution control facilities amortization deductions, foreign operating corporations deemed dividends and adding unitary groups; modifying requirements for sales receipts for services determination managed by a corporation or trust for a fund of a corporation for regulated investment companies under the apportionment formula for corporate franchise tax purposes; providing for transactions without economic substance; modifying the wage definition; providing a transition for pollution control facilities amortization

ARTICLE 5 - SALES AND USE TAXES

Exempting emergency response vehicles and repair parts from the motor vehicle sales tax; exempting the purchase or lease of propane fueled motor vehicles by school districts and purchases for materials and supplies used in construction of the Northstar commuter rail and Central corridor light rail transit projects from the sales tax, specifying a Northstar commuter rail total refund limit; exempting student transport school district purchased propane fueled motor vehicles from the motor vehicle sales tax; authorizing the city of Mankato to extend the sales and use tax and expanding the use of revenues to include the performing arts theatre and the southern Minnesota women's hockey exposition center and authorizing imposition of a food and beverage tax and an entertainment tax; allowing the city of Two Harbors tax revenue use for water system improvements; authorizing the city of Proctor to use additional sales and use tax to be used pay for public utilities, sidewalks, bikeways, trails and parks and recreation improvements and increasing the bonding authority of the city for the projects; authorizing the city of Clearwater by ordinance and with voter approval to impose a sales and use tax and a sales tax on motor vehicles and to issue state bonds to pay for costs of acquisition, construction, improvement and development of regional parks, bicycle trails, park land, pedestrian walkways, open space and land and buildings for a community and recreation center, tax termination; authorizing the city of Cloquet by ordinance and with voter approval to impose a sales and use tax and a sales tax on motor vehicles and to issue bonds to finance the construction and completion of certain park improvement projects, the extension of utilities and other improvements and for construction of a city industrial park, tax termination; authorizing Cook county by election to impose by ordinance a sales and use tax for a community center and recreation area, Grand Marais pool and Grand Marais public library construction and improvements; authorizing the city of Ely by ordinance and with voter approval to impose a sales and use tax and to issue bonds for certain improvements, tax termination; authorizing the city of Mankato impose a food and beverage tax and an entertainment tax, specifying use of proceeds and providing for collection, administration and enforcement and repealing certain previous limitations on use of tax revenues; exempting materials, supplies and equipment used in the construction of the Minnetonka water treatment facility from the sales tax; authorizing the city of North Mankato by ordinance and with voter approval to impose a sales and use tax and to issue bonds to pay all or part of the capital costs of the city share of the marked trunk highway #14 and county state aid highway #41 interchange project, development of regional parks and hiking and biking trails, expansion of the North Mankato Taylor library, redevelopment of the central business district and lake improvement projects, tax termination; authorizing the city of Winona upon voter approval to impose a sales and use tax to pay for construction of a street connection from the city of Winona to highways #61 and 43; authorizing the issuance of bonds, tax termination; repealing previously enacted city of Mankato sales and excise taxes, bonding, reverse referendum, tax expiration and collection and administration provisions

ARTICLE 6 - JUNE ACCELERATED TAX PAYMENTS

Modifying the percentage of the estimated June tax liability required to be paid before June 30

ARTICLE 7 - SPECIAL TAXES

Creating the surplus lines association of Minnesota as a nonprofit association, classifying data as public, requiring licensees to submit documents to the surplus lines association; modifying provisions relating to petroleum product distribution by rail car; extending the authority of Ramsey and Hennepin counties to impose a mortgage registry and deed tax for the environmental response fund and modifying fund authorized uses; authorizing St. Louis county to impose a deed and mortgage tax, requiring proceeds to be deposited in the environmental response fund, creating an environmental response fund for acquisition of polluted or contaminated lands and the paying of certain costs, requiring the county to seek matching funds and authorizing the county to issue bonds and resell land at fair market value; authorizing Dakota county to impose a deed and mortgage tax, requiring proceeds to be deposited in the environmental response fund, creating an environmental response fund for acquisition of polluted or contaminated lands and the paying of certain costs, requiring the county to seek matching funds and authorizing the county to issue bonds and resell land at fair market value, sunset provision; authorizing Anoka county to impose a deed and mortgage tax, creating the Anoka county environmental response fund, specifying uses for the fund and providing for matching funds, bonding and land sales, sunset provision

ARTICLE 8 - MINERALS; AGGREGATE

Authorizing the iron range resources and rehabilitation board (IRRRB) to sell forest trust lands under trust benefit conditions; modifying the taconite economic development fund distribution formula; restricting the taconite and iron sulphides tax exemption to state mined ore; exempting school mineral tax distributions from the education funding general aid taconite deduction requirement; reducing the taconite economic development fund distribution payment, retiring fund distributions and payments as of a certain year, increasing the tax allocation to the IRRRB for the iron range higher education account; requiring a certain producer grant amount to be paid to ISD #2142, St. Louis county, for a facilities study; defining aggregate material importers to consist of excavated materials purchases, increasing the county aggregate production tax, requiring counties to impose on importers a certain aggregate production tax, prohibiting local government units in receipt of revenues from imposing additional aggregate production host community fees, allowing county auditors a certain annual administrative fee retention on total aggregate material production tax collection, modifying tax credit distribution, modifying a public works and local economic development fund distribution for central iron range sanitary sewer district construction effective date; providing for electric generating plants in taconite tax relief areas taconite facility qualification status treatment

ARTICLE 9 - LOCAL DEVELOPMENT

Allowing a regional emerging investment fund credit and a seed capital investment credit; amending certain business subsidy provisions; providing for an historic preservation tax credit and designating a renaissance zone for the former state regional treatment center in the city of Fergus Falls; modifying an Anoka county bonding provision governing county library bonding amounts; providing a job opportunity building zone (JOBZ) qualified business designation termination; authorizing the metropolitan council to issue certificates of indebtedness, bonds or other obligations for additional financing of metropolitan area transit and paratransit capital expenditures; requiring the Hennepin county auditor to calculate and certify the amount of an areawide levy generated by phase II of the mall of America project, requiring city of Bloomington distribution and requiring the city to use the money to finance a parking facility for phase II of the mall of America project; modifying the use of tax increments for activities not identified in the housing replacement plan; modifying the use of tax increments for activities not identified in the housing replacement plan for the cities of Minneapolis and Crystal; increasing the size of the homeless assistance tax increment district of the city of Minneapolis; changing the city of Fridley tax increment financing (TIF) district special rules and specifying a sunset for new districts approval and establishment; changing the city of New Brighton TIF district authorized expenditures outside the district and extending district duration; authorizing the city of Austin to use TIF increments for city housing and redevelopment authority reimbursement for soils and debris disposal expenditures; exempting from the sales tax the Bloomington mall of America building materials and supplies used for improvements within the TIF district in the city of Bloomington, extending the duration of the TIF district, authorizing city of Bloomington to eliminate certain sections of the TIF district and expand the boundaries to include certain other areas, requiring public hearing on district modification, specifying mall of America construction requirements, specifying wage, affordable access, labor peace agreement requirements; authorizing and providing for a local taxing authority for the city of Bloomington; authorizing the Dakota county community development authority to designate additional property to be acquired for a TIF project; providing a limit on abatements for the city of Dayton and Hassan township; authorizing a time extension for activity for certain city of Duluth TIF districts; authorizing the housing and redevelopment authority for the city of Oakdale to create a redevelopment TIF district with extended duration limits

ARTICLE 10 - DEPARTMENT INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES

Specifying a tax return filing date for unitary group corporate members; modifying a foreign operation corporation definition qualification; making technical corrections; allowing payor tax withholding for federal backup withholding

ARTICLE 11 - DEPARTMENT SALES AND USE TAXES

Declaring purchaser sales and use taxes liability relief under conditions of incorrect payment due to erroneous state information and specifying liability for tax payment; updating references; including the commonwealth of Puerto Rico in the definition of state; exempting durable certain medical equipment repair and replacement parts from the sales tax and clarifying the drug exemption; defining database files

ARTICLE 12 - SPECIAL TAXES AND FEES

Requiring the commissioner of the pollution control agency to inform the commissioner of revenue of the amount necessary to operate the electronic waste account and allowing non refunded amounts to remain in the account; imposing a tax liability for the tobacco health impact fee; updating references; making technical corrections; exempting wholesale drug distributors from the health care provider definition; modifying the use tax on legend drugs; exempting denatured ethanol purchased by licensed distributors from the gasoline tax and exempting special and alternative fuels purchased by licensed distributors delivered to a terminal for use in blending; declaring as contraband cigarettes and cigarette packaging in non compliance with fire safety requirements; removing (insurance) gross premiums less return premiums received by nonprofit health service plan corporations from tax imposition

ARTICLE 13 - DEPARTMENT PROPERTY TAXES AND AIDS

Classifying assessor and housing low income property certification and eligibility income data as private data on individuals; updating references; exempting manufactured homes assessment from tax conversion; defining utility property under tax relief for destroyed property to be property appraised and classified by the commissioner of revenue, requiring the commissioner of revenue to reassess damaged property for which an application to the commissioner is made, allowing the commissioner of revenue to grant utilities an abatement of net taxes, clarifying when applications are to be made; classifying state or federal tax returns or tax return information for property tax homestead classification claims as private data on individuals; making technical corrections; modifying the class 1b property definition; allowing local boards with transferred powers to counties to continue local assessor employment; making conforming amendments; classifying household information on property tax deferral applications as private data on individuals; repealing under local government aid (LGA) provisions certain billed costs to the commissioner of revenue and the subsequent deductions

ARTICLE 14 - JOB OPPORTUNITY BUILDING ZONES

Modifying conditions for job opportunity building zones (JOBZ) tax benefits repayment by businesses no longer operating in a zone, defining certain terms; modifying waiver of repayment authority; providing treatment for breach of agreements by businesses continuing operations in the zone; providing a prohibition against amendments to business subsidy agreements and requiring annual certification of continuing eligibility for JOBZ benefits

ARTICLE 15 - DEPARTMENT MISCELLANEOUS

Allowing Minnesota State Colleges and Universities (MnSCU) and local government units to collect debt under the commissioner of revenue debt qualification plan, expanding the definition of referring agency, clarifying the roles of participating agencies, requiring debtor notification of department revenue recapture use, clarifying collection prohibition during appeal

ARTICLE 16 - MISCELLANEOUS

Exempting mortgages on property in federally declared disaster areas from mortgage registry tax, including refinancing mortgages in the exemption; requiring the commissioner of revenue to continue to maintain certain tax related data comparing household incomes with home market values and property tax burdens, requiring data to be furnished to the legislature and appropriating money to the commissioner of revenue
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