1.1 	A bill for an act
1.2 	relating to the financing and operation of state and local government; making 
1.3 	policy, technical, administrative, enforcement, collection, refund, and other 
1.4 	changes to income, franchise, property, sales and use, motor vehicle sales, 
1.5 	cigarette and tobacco products, gasoline, insurance premiums, aggregate removal, 
1.6 	mortgage, deed, and production taxes, and other taxes and tax-related provisions; 
1.7 	providing for aids to local governments; providing income tax subtractions; 
1.8 	modifying taxation of foreign operating corporations; providing sales tax 
1.9 	exemptions; modifying and authorizing local government taxes; authorizing 
1.10 	and modifying levies, property valuation procedures, homestead provisions, 
1.11 	property tax classes, class rates, and tax bases; changing and providing property 
1.12 	tax exemptions and credits; creating Surplus Lines Association of Minnesota; 
1.13 	changing JOBZ, border city allocation, tax increment financing, and economic 
1.14 	development powers and incentives; changing provisions relating to fiscal 
1.15 	disparities, state debt collection procedures; authorizing utility rate adjustments; 
1.16 	changing distributions of production tax proceeds; providing for sale of forest 
1.17 	lands; providing for higher education grants in the taconite assistance area; 
1.18 	authorizing issuance of obligations; modifying a taxing district; changing and 
1.19 	imposing powers, duties, and requirements on certain local governments and 
1.20 	authorities and state departments or agencies; authorizing local governments to 
1.21 	provide certain development incentives; providing rules for operation of certain 
1.22 	tax increment financing districts; requiring studies; requiring development of 
1.23 	recommendations for a stadium; appropriating money; amending Minnesota 
1.24 	Statutes 2006, sections 13.51, subdivision 3; 13.585, subdivision 5; 16D.02, 
1.25 	subdivisions 3, 6; 16D.04, subdivision 2, as amended; 60A.196; 116J.993, 
1.26 	subdivision 3; 116J.994, subdivisions 2, 5; 126C.01, subdivision 3; 126C.41, 
1.27 	subdivision 2; 216B.1646; 270A.08, subdivision 1; 270C.33, subdivision 5; 
1.28 	270C.56, subdivision 1, as amended; 272.02, subdivisions 13, 20, 21, 27, 
1.29 	31, 38, 49, 55, 82, 84, by adding a subdivision; 272.03, subdivisions 2, 3, 
1.30 	by adding a subdivision; 273.11, subdivision 8; 273.111, subdivisions 3, as 
1.31 	amended, 6, 8, 14, by adding subdivisions; 273.112, subdivision 3; 273.124, 
1.32 	subdivisions 6, 11, 13, as amended, 21; 273.128, subdivision 1, as amended; 
1.33 	273.13, subdivisions 22, as amended, 23, as amended, 24, 25, as amended, 
1.34 	33; 273.19, subdivision 1; 274.014, subdivision 3; 275.025, subdivisions 1, 
1.35 	2, 4; 275.065, by adding a subdivision; 276.04, subdivision 2, as amended; 
1.36 	278.05, subdivision 6, as amended; 280.39, as amended; 287.20, subdivisions 
1.37 	3a, 9, by adding a subdivision; 289A.18, subdivision 1, as amended; 289A.20, 
1.38 	subdivision 4, as amended; 289A.55, by adding a subdivision; 289A.60, 
1.39 	subdivision 15, as amended, by adding a subdivision; 290.01, subdivisions 6b, 
2.1 	19c, as amended, 19d, as amended; 290.06, by adding subdivisions; 290.068, 
2.2 	subdivision 3; 290.07, subdivision 1; 290.21, subdivision 4; 290.34, by adding 
2.3 	a subdivision; 290.92, subdivisions 1, 26; 290A.10; 290B.04, subdivision 1; 
2.4 	295.50, subdivision 4; 295.52, subdivision 4, as amended; 295.53, subdivision 
2.5 	4a; 296A.01, subdivisions 44, 45; 296A.03, subdivision 2; 296A.07, subdivision 
2.6 	4; 296A.08, subdivision 3; 296A.16, subdivision 2; 297A.61, subdivisions 22, 
2.7 	29; 297A.665, as amended; 297A.67, subdivision 7, as amended; 297A.71, 
2.8 	by adding subdivisions; 297A.75; 297A.995, subdivision 10, by adding 
2.9 	subdivisions; 297B.01, subdivision 7; 297B.03; 297F.01, subdivision 8; 297F.09, 
2.10 	subdivision 10, as amended; 297F.21, subdivision 1; 297G.01, subdivision 
2.11 	9; 297G.09, subdivision 9, as amended; 297H.09; 297I.05, subdivision 12; 
2.12 	298.22, subdivision 5a, as added; 298.24, subdivision 1, as amended; 298.28, 
2.13 	subdivisions 4, as amended, 9a, 9d, as added; 298.2961, subdivision 4, as 
2.14 	amended; 298.75, subdivisions 1, 2, 6, 7; 365.243, by adding a subdivision; 
2.15 	365A.095; 383A.80, subdivision 4; 383A.81, subdivisions 1, 2; 383B.80, 
2.16 	subdivision 4; 383B.81, subdivisions 1, 2; 383E.20; 469.040, subdivision 4; 
2.17 	469.174, subdivision 10b; 469.177, subdivision 1c; 469.312, by adding a 
2.18 	subdivision; 469.319; 473.39, by adding a subdivision; 473.446, subdivisions 
2.19 	2, 8; 473F.08, by adding a subdivision; 477A.011, subdivisions 34, 36, as 
2.20 	amended, by adding subdivisions; 477A.0124, subdivisions 4, 5, by adding 
2.21 	a subdivision; 477A.013, subdivisions 1, 8, as amended, 9, as amended, by 
2.22 	adding a subdivision; 477A.03, subdivisions 2a, 2b, by adding subdivisions; 
2.23 	Minnesota Statutes 2007 Supplement, sections 115A.1314, subdivision 2; 
2.24 	273.1231, subdivision 7, by adding a subdivision; 273.1232, subdivision 1; 
2.25 	273.1233, subdivisions 1, 3; 273.1234; 273.1235, subdivisions 1, 3; 273.1393; 
2.26 	290.01, subdivision 19b, as amended; 297A.70, subdivision 3; 298.227; Laws 
2.27 	1991, chapter 291, article 8, section 27, subdivisions 3, as amended, 4, as 
2.28 	amended; Laws 1995, chapter 264, article 5, section 46, subdivision 2; Laws 
2.29 	1998, chapter 389, article 8, section 45, subdivision 3; Laws 1999, chapter 
2.30 	243, article 4, section 18, subdivisions 1, 3, 4; Laws 2003, chapter 127, article 
2.31 	10, section 31, subdivision 1; Laws 2006, chapter 259, article 10, section 14, 
2.32 	subdivision 1; Laws 2008, chapter 154, article 2, section 27; article 8, section 14; 
2.33 	article 9, sections 23; 24; proposing coding for new law in Minnesota Statutes, 
2.34 	chapters 60A; 116J; 273; 383C; 383D; 383E; 469; proposing coding for new 
2.35 	law as Minnesota Statutes, chapter 290D; repealing Minnesota Statutes 2006, 
2.36 	sections 272.027, subdivision 3; 275.025, subdivision 3; 279.01, subdivision 
2.37 	4; 473.4461; 477A.014, subdivision 5; Minnesota Statutes 2007 Supplement, 
2.38 	section 477A.014, subdivision 4; Laws 2005, First Special Session chapter 3, 
2.39 	article 5, section 24; Minnesota Rules, parts 8031.0100, subpart 3; 8093.2100.
2.40 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.41 	ARTICLE 1
2.42 	AIDS TO LOCAL GOVERNMENTS

2.43 	Section 1. Minnesota Statutes 2006, section 477A.011, subdivision 34, is amended to 
2.44 	read:
2.45 		Subd. 34.City revenue need. (a) For a city with a population equal to or greater 
2.46 	than 2,500, "city revenue need" is the sum of (1) 5.0734098 times the pre-1940 housing 
2.47 	percentage; plus (2) 19.141678 times the population decline percentage; plus (3) 
2.48 	2504.06334 times the road accidents factor; plus (4) 355.0547; minus (5) the metropolitan 
3.1 	area factor; minus (6) 49.10638 times the household size. The city revenue need under 
3.2 	this paragraph may not be less than 290.
3.3 	(b) For a city with a population less than 2,500, "city revenue need" is the sum of 
3.4 	(1) 2.387 times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial 
3.5 	industrial percentage; plus (3) 3.16042 times the population decline percentage; plus (4) 
3.6 	1.206 times the transformed population; minus (5) 62.772.
3.7 	(c) For a city with a population of 2,500 or more and a population in one of the most 
3.8 	recently available five years that was less than 2,500, "city revenue need" is the sum of (1) 
3.9 	its city revenue need calculated under paragraph (a) multiplied by its transition factor; 
3.10 	plus (2) its city revenue need calculated under the formula in paragraph (b) multiplied 
3.11 	by the difference between one and its transition factor. For purposes of this paragraph, a 
3.12 	city's "transition factor" is equal to 0.2 multiplied by the number of years that the city's 
3.13 	population estimate has been 2,500 or more. This provision only applies for aids payable 
3.14 	in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500. It 
3.15 	applies to any city for aids payable in 2009 and thereafter.
3.16 	(d) The city revenue need cannot be less than zero.
3.17 	(e) For calendar year 2005 and subsequent years, the city revenue need for a city, 
3.18 	as determined in paragraphs (a) to (d), is multiplied by the ratio of the annual implicit 
3.19 	price deflator for government consumption expenditures and gross investment for state 
3.20 	and local governments as prepared by the United States Department of Commerce, for 
3.21 	the most recently available year to the 2003 implicit price deflator for state and local 
3.22 	government purchases.

3.23 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
3.24 	2009 and thereafter.

3.25 	Sec. 2. Minnesota Statutes 2006, section 477A.011, subdivision 36, as amended by 
3.26 	Laws 2008, chapter 154, article 1, section 1, is amended to read:
3.27 		Subd. 36. City aid base. (a) Except as otherwise provided in this subdivision, 
3.28 	"city aid base" is zero.
3.29 	(b) The city aid base for any city with a population less than 500 is increased by 
3.30 	$40,000 for aids payable in calendar year 1995 and thereafter, and the maximum amount 
3.31 	of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also 
3.32 	increased by $40,000 for aids payable in calendar year 1995 only, provided that:
3.33 	(i) the average total tax capacity rate for taxes payable in 1995 exceeds 200 percent;
3.34 	(ii) the city portion of the tax capacity rate exceeds 100 percent; and
3.35 	(iii) its city aid base is less than $60 per capita.
4.1 	(c) The city aid base for a city is increased by $20,000 in 1998 and thereafter and 
4.2 	the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
4.3 	paragraph (c), is also increased by $20,000 in calendar year 1998 only, provided that:
4.4 	(i) the city has a population in 1994 of 2,500 or more;
4.5 	(ii) the city is located in a county, outside of the metropolitan area, which contains a 
4.6 	city of the first class;
4.7 	(iii) the city's net tax capacity used in calculating its 1996 aid under section 
4.8 	477A.013 is less than $400 per capita; and
4.9 	(iv) at least four percent of the total net tax capacity, for taxes payable in 1996, of 
4.10 	property located in the city is classified as railroad property.
4.11 	(d) The city aid base for a city is increased by $200,000 in 1999 and thereafter and 
4.12 	the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
4.13 	paragraph (c), is also increased by $200,000 in calendar year 1999 only, provided that:
4.14 	(i) the city was incorporated as a statutory city after December 1, 1993;
4.15 	(ii) its city aid base does not exceed $5,600; and
4.16 	(iii) the city had a population in 1996 of 5,000 or more.
4.17 	(e) The city aid base for a city is increased by $450,000 in 1999 to 2008 and the 
4.18 	maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
4.19 	paragraph (c), is also increased by $450,000 in calendar year 1999 only, provided that:
4.20 	(i) the city had a population in 1996 of at least 50,000;
4.21 	(ii) its population had increased by at least 40 percent in the ten-year period ending 
4.22 	in 1996; and
4.23 	(iii) its city's net tax capacity for aids payable in 1998 is less than $700 per capita.
4.24 	(f) The city aid base for a city is increased by $150,000 for aids payable in 2000 and 
4.25 	thereafter, and the maximum amount of total aid it may receive under section 477A.013, 
4.26 	subdivision 9, paragraph (c), is also increased by $150,000 in calendar year 2000 only, 
4.27 	provided that:
4.28 	(1) the city has a population that is greater than 1,000 and less than 2,500;
4.29 	(2) its commercial and industrial percentage for aids payable in 1999 is greater 
4.30 	than 45 percent; and
4.31 	(3) the total market value of all commercial and industrial property in the city 
4.32 	for assessment year 1999 is at least 15 percent less than the total market value of all 
4.33 	commercial and industrial property in the city for assessment year 1998.
4.34 	(g) The city aid base for a city is increased by $200,000 in 2000 and thereafter, and 
4.35 	the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
4.36 	paragraph (c), is also increased by $200,000 in calendar year 2000 only, provided that:
5.1 	(1) the city had a population in 1997 of 2,500 or more;
5.2 	(2) the net tax capacity of the city used in calculating its 1999 aid under section 
5.3 	477A.013 is less than $650 per capita;
5.4 	(3) the pre-1940 housing percentage of the city used in calculating 1999 aid under 
5.5 	section 477A.013 is greater than 12 percent;
5.6 	(4) the 1999 local government aid of the city under section 477A.013 is less than 
5.7 	20 percent of the amount that the formula aid of the city would have been if the need 
5.8 	increase percentage was 100 percent; and
5.9 	(5) the city aid base of the city used in calculating aid under section 477A.013
5.10 	is less than $7 per capita.
5.11 	(h) The city aid base for a city is increased by $102,000 in 2000 and thereafter, and 
5.12 	the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
5.13 	paragraph (c), is also increased by $102,000 in calendar year 2000 only, provided that:
5.14 	(1) the city has a population in 1997 of 2,000 or more;
5.15 	(2) the net tax capacity of the city used in calculating its 1999 aid under section 
5.16 	477A.013 is less than $455 per capita;
5.17 	(3) the net levy of the city used in calculating 1999 aid under section 477A.013 is 
5.18 	greater than $195 per capita; and
5.19 	(4) the 1999 local government aid of the city under section 477A.013 is less than 
5.20 	38 percent of the amount that the formula aid of the city would have been if the need 
5.21 	increase percentage was 100 percent.
5.22 	(i) The city aid base for a city is increased by $32,000 in 2001 and thereafter, and 
5.23 	the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
5.24 	paragraph (c), is also increased by $32,000 in calendar year 2001 only, provided that:
5.25 	(1) the city has a population in 1998 that is greater than 200 but less than 500;
5.26 	(2) the city's revenue need used in calculating aids payable in 2000 was greater 
5.27 	than $200 per capita;
5.28 	(3) the city net tax capacity for the city used in calculating aids available in 2000 
5.29 	was equal to or less than $200 per capita;
5.30 	(4) the city aid base of the city used in calculating aid under section 477A.013
5.31 	is less than $65 per capita; and
5.32 	(5) the city's formula aid for aids payable in 2000 was greater than zero.
5.33 	(j) The city aid base for a city is increased by $7,200 in 2001 and thereafter, and 
5.34 	the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
5.35 	paragraph (c), is also increased by $7,200 in calendar year 2001 only, provided that:
5.36 	(1) the city had a population in 1998 that is greater than 200 but less than 500;
6.1 	(2) the city's commercial industrial percentage used in calculating aids payable in 
6.2 	2000 was less than ten percent;
6.3 	(3) more than 25 percent of the city's population was 60 years old or older according 
6.4 	to the 1990 census;
6.5 	(4) the city aid base of the city used in calculating aid under section 477A.013
6.6 	is less than $15 per capita; and
6.7 	(5) the city's formula aid for aids payable in 2000 was greater than zero.
6.8 	(k) The city aid base for a city is increased by $45,000 in 2001 and thereafter and 
6.9 	by an additional $50,000 in calendar years 2002 to 2011, and the maximum amount of 
6.10 	total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also 
6.11 	increased by $45,000 in calendar year 2001 only, and by $50,000 in calendar year 2002 
6.12 	only, provided that:
6.13 	(1) the net tax capacity of the city used in calculating its 2000 aid under section 
6.14 	477A.013 is less than $810 per capita;
6.15 	(2) the population of the city declined more than two percent between 1988 and 1998;
6.16 	(3) the net levy of the city used in calculating 2000 aid under section 477A.013 is 
6.17 	greater than $240 per capita; and
6.18 	(4) the city received less than $36 per capita in aid under section 477A.013, 
6.19 	subdivision 9, for aids payable in 2000.
6.20 	(l) The city aid base for a city with a population of 10,000 or more which is located 
6.21 	outside of the seven-county metropolitan area is increased in 2002 and thereafter, and the 
6.22 	maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
6.23 	paragraph (b) or (c), is also increased in calendar year 2002 only, by an amount equal to 
6.24 	the lesser of:
6.25 	(1)(i) the total population of the city, as determined by the United States Bureau of 
6.26 	the Census, in the 2000 census, (ii) minus 5,000, (iii) times 60; or
6.27 	(2) $2,500,000.
6.28 	(m) The city aid base is increased by $50,000 in 2002 and thereafter, and the 
6.29 	maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
6.30 	paragraph (c), is also increased by $50,000 in calendar year 2002 only, provided that: 
6.31 	(1) the city is located in the seven-county metropolitan area;
6.32 	(2) its population in 2000 is between 10,000 and 20,000; and
6.33 	(3) its commercial industrial percentage, as calculated for city aid payable in 2001, 
6.34 	was greater than 25 percent.
6.35 	(n) (m) The city aid base for a city is increased by $150,000 in calendar years 2002 
6.36 	to 2011 and by an additional $75,000 in calendar years 2009 to 2014 and the maximum 
7.1 	amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is 
7.2 	also increased by $150,000 in calendar year 2002 only and by $75,000 in calendar year 
7.3 	2009 only, provided that:
7.4 	(1) the city had a population of at least 3,000 but no more than 4,000 in 1999;
7.5 	(2) its home county is located within the seven-county metropolitan area;
7.6 	(3) its pre-1940 housing percentage is less than 15 percent; and
7.7 	(4) its city net tax capacity per capita for taxes payable in 2000 is less than $900 
7.8 	per capita.
7.9 	(o)(n) The city aid base for a city is increased by $200,000 beginning in calendar 
7.10 	year 2003 and the maximum amount of total aid it may receive under section 477A.013, 
7.11 	subdivision 9, paragraph (c), is also increased by $200,000 in calendar year 2003 only, 
7.12 	provided that the city qualified for an increase in homestead and agricultural credit aid 
7.13 	under Laws 1995, chapter 264, article 8, section 18.
7.14 	(p)(o) The city aid base for a city is increased by $200,000 in 2004 only and the 
7.15 	maximum amount of total aid it may receive under section 477A.013, subdivision 9, is 
7.16 	also increased by $200,000 in calendar year 2004 only, if the city is the site of a nuclear 
7.17 	dry cask storage facility.
7.18 	(q)(p )The city aid base for a city is increased by $10,000 in 2004 and thereafter 
7.19 	and the maximum total aid it may receive under section 477A.013, subdivision 9, is also 
7.20 	increased by $10,000 in calendar year 2004 only, if the city was included in a federal 
7.21 	major disaster designation issued on April 1, 1998, and its pre-1940 housing stock was 
7.22 	decreased by more than 40 percent between 1990 and 2000.
7.23 	(r)(q) The city aid base for a city is increased by $30,000  in 2009 and thereafter  
7.24 	and the maximum total aid it may receive under section 477A.013, subdivision 9, is also 
7.25 	increased by $25,000 in calendar year 2006 only if the city had a population in 2003 
7.26 	of at least 1,000 and has a state park for which the city provides rescue services and 
7.27 	which comprised at least 14 percent of the total geographic area included within the 
7.28 	city boundaries in 2000.
7.29 	(s) The city aid base for a city with a population less than 5,000 is increased in 
7.30 	2006 and thereafter and the minimum and maximum amount of total aid it may receive 
7.31 	under this section is also increased in calendar year 2006 only by an amount equal to 
7.32 	$6 multiplied by its population.
7.33 	(t)(r) The city aid base for a city is increased by $80,000 in 2009 and thereafter and 
7.34 	the minimum and maximum amount of total aid it may receive under section 477A.013, 
7.35 	subdivision 9, is also increased by $80,000 in calendar year 2009 only, if:
8.1 	(1) as of May 1, 2006, at least 25 percent of the tax capacity of the city is proposed 
8.2 	to be placed in trust status as tax-exempt Indian land;
8.3 	(2) the placement of the land is being challenged administratively or in court; and
8.4 	(3) due to the challenge, the land proposed to be placed in trust is still on the tax 
8.5 	rolls as of May 1, 2006.
8.6 	(u)(s) The city aid base for a city is increased by $100,000 in 2007 and thereafter 
8.7 	and the minimum and maximum total amount of aid it may receive under this section is 
8.8 	also increased in calendar year 2007 only, provided that:
8.9 	(1) the city has a 2004 estimated population greater than 200 but less than 2,000;
8.10 	(2) its city net tax capacity for aids payable in 2006 was less than $300 per capita;
8.11 	(3) the ratio of its pay 2005 tax levy compared to its city net tax capacity for aids 
8.12 	payable in 2006 was greater than 110 percent; and
8.13 	(4) it is located in a county where at least 15,000 acres of land are classified as 
8.14 	tax-exempt Indian reservations according to the 2004 abstract of tax-exempt property.
8.15 	(v) (t) The city aid base for a city is increased by $30,000 in 2009 only, and the 
8.16 	maximum total aid it may receive under section 477A.013, subdivision 9, is also increased 
8.17 	by $30,000 in calendar year 2009, only if the city had a population in 2005 of less than 
8.18 	3,000 and the city's boundaries as of 2007 were formed by the consolidation of two cities 
8.19 	and one township in 2002.
8.20 	(u) The city aid base for a city is increased by $135,000 in 2009 only and the 
8.21 	minimum and maximum total amount of aid it may receive under section 477A.013, 
8.22 	subdivision 9, is also increased by $135,000 in calendar year 2009 only, provided that: 
8.23 	(1) the city is located in the metropolitan area and its 2006 population is less than 
8.24 	2,500;
8.25 	(2) at least 25 percent of its housing was built before 1940 and at least 50 percent of 
8.26 	its housing is rental housing, according to the 2000 United States Census;
8.27 	(3) the median household income in the city is 80 percent or less than the median 
8.28 	household income in the metropolitan area and 50 percent or less than the median 
8.29 	household income for all cities contiguous to that city, according to the 2000 United 
8.30 	States Census; and
8.31 	(4) at least 60 percent of the land and water acres in the city are classified as 
8.32 	tax-exempt property, according to its 2008 planning document.
8.33 	(v) The city aid base is increased by $14,700 in calendar year 2009 only and the 
8.34 	maximum amount of total aid it may receive under section 477A.013, subdivision 9, is 
8.35 	increased by $14,700 in calendar year 2009 only, provided that:
8.36 	(1) the city is located in the seven-county metropolitan area;
9.1 	(2) its population in 2006 is less than 200; and 
9.2 	(3) the percentage of its housing stock built before 1940, according to the 2000 
9.3 	United States Census, is greater than 40 percent.

9.4 	EFFECTIVE DATE. This section is effective for aid payable in calendar year 
9.5 	2009 and thereafter.

9.6 	Sec. 3. Minnesota Statutes 2006, section 477A.011, is amended by adding a 
9.7 	subdivision to read:
9.8 		Subd. 41.Small city aid base. "Small city aid base" for a city with a population 
9.9 	as defined in subdivision 3, less than 5,000 is equal to $12 multiplied by its population. 
9.10 	Aid under this subdivision must be calculated using the greater of a city's highest federal 
9.11 	census population since 1940 or its current population estimate. The small city aid base 
9.12 	for all other cities is equal to zero.

9.13 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
9.14 	2009 and thereafter.

9.15 	Sec. 4. Minnesota Statutes 2006, section 477A.011, is amended by adding a 
9.16 	subdivision to read:
9.17 		Subd. 42.City jobs base. (a) (1) "City jobs base" for a city that receives disparity 
9.18 	reduction credits under section 273.1398, subdivision 4, and has a population of 10,000 
9.19 	or more, is equal to the product of (i) $75, (ii) the number of jobs per capita in the city, 
9.20 	and (iii) its population. (2) For all other cities with a population of 5,000 or more the 
9.21 	city jobs base is equal to the product of (i) $55, (ii) the number of jobs per capita in the 
9.22 	city, and (iii) its population. (3) For cities with a population less than 5,000, the city 
9.23 	jobs base is equal to zero.
9.24 	(b) A city with a population greater than 15,000 but less than 30,000 that is located 
9.25 	outside of the metropolitan area shall have its city jobs base increased by $100,000. A city 
9.26 	with a population greater than 30,000 that is located outside of the metropolitan area shall 
9.27 	have its city jobs base increased by $350,000.
9.28 	(c) No city's city jobs base may exceed $12,000,000.
9.29 	(d) For purposes of this subdivision, "jobs per capita in the city" means (1) the 
9.30 	average annual number of employees in the city based on the data from the Quarterly 
9.31 	Census of Employment and Wages, as reported by the Department of Employment and 
9.32 	Economic Development, for the most recent calendar year available as of January 1 of 
10.1 	the year in which the aid is calculated, divided by (2) the city's population for the same 
10.2 	calendar year as the employment data.

10.3 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
10.4 	2009 and thereafter.

10.5 	Sec. 5. Minnesota Statutes 2006, section 477A.0124, subdivision 4, is amended to read:
10.6 		Subd. 4.County tax-base equalization aid. (a) For 2006 and subsequent years, 
10.7 	the money appropriated to county tax-base equalization aid each calendar year, after the 
10.8 	payment under paragraph (f), shall be apportioned among the counties according to each 
10.9 	county's tax-base equalization aid factor.
10.10 	(b) A county's tax-base equalization aid factor is equal to the amount by which (i) 
10.11 	$185 $228 times the county's population, exceeds (ii) 9.45 8.6 percent of the county's 
10.12 	net tax capacity.
10.13 	(c) In the case of a county with a population less than 10,000, the factor determined 
10.14 	in paragraph (b) shall be multiplied by a factor of three.
10.15 	(d) In the case of a county with a population greater than or equal to 10,000, but less 
10.16 	than 12,500, the factor determined in paragraph (b) shall be multiplied by a factor of two.
10.17 	(e) In the case of a county with a population greater than 500,000, the factor 
10.18 	determined in paragraph (b) shall be multiplied by a factor of 0.25.
10.19 	(f) Before the money appropriated to county base equalization aid is apportioned 
10.20 	among the counties as provided in paragraph (a), an amount up to $73,259 is allocated 
10.21 	annually to Anoka County and up to $59,664 is annually allocated to Washington County 
10.22 	for the county to pay postretirement costs of health insurance premiums for court 
10.23 	employees. The allocation under this paragraph is in addition to the allocations under 
10.24 	paragraphs (a) to (e).

10.25 	EFFECTIVE DATE. This section is effective for aids payable in 2009 and 
10.26 	subsequent years.

10.27 	Sec. 6. Minnesota Statutes 2006, section 477A.0124, subdivision 5, is amended to read:
10.28 		Subd. 5.County transition aid. (a) For 2005 2009 and subsequent years, a county 
10.29 	is eligible for transition aid equal to the amount, if any, by which:
10.30 	(1) the difference between:
10.31 	(i) the aid the county received under subdivision 1 in 2004, divided by the total aid 
10.32 	paid to all counties under subdivision 1, multiplied by $205,000,000; and
11.1 	(ii) the amount of aid the county is certified to receive in 2005 under subdivisions 
11.2 	3 and 4;
11.3 	exceeds:
11.4 	(2) three percent of the county's adjusted net tax capacity.
11.5 	A county's aid under this paragraph may not be less than zero.
11.6 	(b) In 2006, a county is eligible to receive two-thirds of the transition aid it received 
11.7 	in 2005.
11.8 	(c) In 2007, a county is eligible to receive one-third of the transition aid it received 
11.9 	in 2005.
11.10 	(d) No county shall receive aid under this subdivision after 2007.

11.11 	Sec. 7. Minnesota Statutes 2006, section 477A.0124, is amended by adding a 
11.12 	subdivision to read:
11.13 		Subd. 6.Out-of-home placement aid. In calendar year 2009 only, $500,000 shall 
11.14 	be distributed to any county in which the percentage of households receiving food stamps 
11.15 	divided by its age-adjusted population is greater than five percent using data for county 
11.16 	program aid certified for aids payable in 2008. The aid must be used to meet the county's 
11.17 	cost of out-of-home placement programs.

11.18 	Sec. 8. Minnesota Statutes 2006, section 477A.013, subdivision 1, is amended to read:
11.19 		Subdivision 1.Towns. In 2002, no 2009 and subsequent years, each town is eligible 
11.20 	for a distribution under this subdivision equal to the product of (i) its agricultural property 
11.21 	factor, (ii) its town area factor, (iii) its population factor, and (iv) 0.00225. As used in this 
11.22 	subdivision, the following terms have the meanings given them:
11.23 	(1) "agricultural property factor" means the ratio of the adjusted net tax capacity of 
11.24 	agricultural property located in a town, divided by the adjusted net tax capacity of all other 
11.25 	property located in the town. The agricultural property factor cannot exceed eight;
11.26 	(2) "agricultural property" means property classified under section 273.13, as 
11.27 	homestead and nonhomestead agricultural property, timber land, and noncommercial 
11.28 	seasonal recreational property;
11.29 	(3) "town area factor" means the most recent estimate of total acreage, not to exceed 
11.30 	50,000 acres, located in the township available as of July 1 in the aid calculation year, 
11.31 	estimated or established by:
11.32 	(i) the United States Bureau of the Census;
11.33 	(ii) the State Land Management Information Center; or
11.34 	(iii) the secretary of state; and
12.1 	(4) "population factor" means the square root of the town's population.
12.2 	If the sum of the aids payable to all towns under this subdivision exceeds the limit 
12.3 	under section 477A.03, subdivision 2c, the distribution to each town must be reduced 
12.4 	proportionately so that the total amount of aids distributed under this section does not 
12.5 	exceed the limit in section 477A.03, subdivision 2c.

12.6 	Sec. 9. Minnesota Statutes 2006, section 477A.013, subdivision 8, as amended by 
12.7 	Laws 2008, chapter 154, article 1, section 2, is amended to read:
12.8 		Subd. 8. City formula aid. In calendar year 2004 and subsequent years 2009, the 
12.9 	formula aid for a city is equal to (1) the sum of (i) its city jobs base, (ii) its small city aid 
12.10 	base, and (iii) the need increase percentage multiplied by the difference between (1) (2)
12.11 	the city's revenue need multiplied by its population, and (2) the sum of (3) the city's net tax 
12.12 	capacity multiplied by the tax effort rate. For aids payable in 2009 only, a city's revenue 
12.13 	need, population, net tax capacity, maximum, minimum, and tax effort rate will be based 
12.14 	on the data available for calculating these factors for aids payable in 2008.
12.15 	No city may have a formula aid amount less than zero. The need increase percentage 
12.16 	must be the same for all cities.
12.17 	The applicable need increase percentage must be calculated by the Department of 
12.18 	Revenue so that the total of the aid under subdivision 9 equals the total amount available 
12.19 	for aid under section 477A.03 after the subtraction under section 477A.014, subdivisions 
12.20 	4 and 5.

12.21 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2009.

12.22 	Sec. 10. Minnesota Statutes 2006, section 477A.013, subdivision 9, as amended by 
12.23 	Laws 2008, chapter 154, article 1, section 3, is amended to read:
12.24 		Subd. 9. City aid distribution. (a) In calendar year 2009, each city shall receive an 
12.25 	aid distribution equal to the sum of (1) the city formula aid under subdivision 8, and (2) its 
12.26 	city aid base, and (3) one-half of the difference between its total aid in the previous year 
12.27 	under this subdivision and its city aid base in the previous year.
12.28 	(b) For aids payable in 2010 and thereafter, each city shall receive an aid distribution 
12.29 	equal to (1) the city aid formula under subdivision 8, (2) its city aid base, and (3) its 
12.30 	formula aid under subdivision 8 in the previous year, prior to any adjustments under this 
12.31 	subdivision the amount it received under this section in the previous year, multiplied by 
12.32 	the inflation adjustment in paragraph (e).
13.1 	(c) For aids payable in 2009 and thereafter, the total aid for any city shall not exceed 
13.2 	the sum of (1) ten 75 percent of the city's net levy for the year prior to the aid distribution 
13.3 	plus (2) its total aid in the previous year. For aids payable in 2009, the total aid for any 
13.4 	city may not be less than its total aid under this section in the previous year. For aids 
13.5 	payable in 2010 and thereafter, the total aid for any city with a population of 2,500 or 
13.6 	more may not be less than decrease from its total aid under this section in the previous 
13.7 	year minus the lesser of $15 multiplied by its population, or by an amount greater than ten 
13.8 	percent of its net levy in the year prior to the aid distribution.
13.9 	(d) For aids payable in 2009 and thereafter, the total aid for a city with a population 
13.10 	less than 2,500 must not be less than the amount it was certified to receive in the previous 
13.11 	year minus the lesser of $15 multiplied by its population, or five percent of its 2003 
13.12 	certified aid amount.
13.13 	(e) If a city's net tax capacity used in calculating aid under this section has decreased 
13.14 	in any year by more than 25 percent from its net tax capacity in the previous year due to 
13.15 	property becoming tax-exempt Indian land, the city's maximum allowed aid increase 
13.16 	under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the 
13.17 	year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease 
13.18 	resulting from the property becoming tax exempt.

13.19 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
13.20 	2009 and thereafter.

13.21 	Sec. 11. Minnesota Statutes 2006, section 477A.013, is amended by adding a 
13.22 	subdivision to read:
13.23 		Subd. 11.2009 aid adjustment. If the limit under section 477A.03, subdivision 
13.24 	2a, for aids payable in 2009 is less than $575,052,000, the aid paid to each city under 
13.25 	this section is equal to the sum of (1) the amount the city received under subdivision 9 
13.26 	in calendar year 2008 and (2) an adjustment percentage multiplied by the difference 
13.27 	between what the city received in subdivision 9 in calendar year 2008 and its aid in 
13.28 	calendar year 2009 under subdivision 9. The "adjustment percentage," which is the same 
13.29 	for all cities, is the percentage necessary for the total aids under this section to equal 
13.30 	the amount available under section 477A.03, subdivision 2a, after the subtraction under 
13.31 	section 477A.014, subdivisions 4 and 5.

13.32 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
13.33 	2009.

14.1 	Sec. 12. Minnesota Statutes 2006, section 477A.03, subdivision 2a, is amended to read:
14.2 		Subd. 2a.Cities. For aids payable in 2004 2009, the total aids paid to cities under 
14.3 	section 477A.013, subdivision 9 subdivisions 9 and 11, are limited to $429,000,000. For 
14.4 	aids payable in 2005, the total aids paid under section 477A.013, subdivision 9, are limited 
14.5 	to $437,052,000. For aids payable in 2006 and thereafter, the total aids paid under section 
14.6 	477A.013, subdivision 9, is limited to $485,052,000 $555,052,000.

14.7 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
14.8 	2009 and thereafter.

14.9 	Sec. 13. Minnesota Statutes 2006, section 477A.03, subdivision 2b, is amended to read:
14.10 		Subd. 2b.Counties. (a) For aids payable in calendar year 2005 and thereafter to 
14.11 	2008, the total aids paid to counties under section 477A.0124, subdivision 3, are limited to 
14.12 	$100,500,000. For aids payable in calendar year 2009, the total aids paid to counties under 
14.13 	section 477A.0124, subdivision 3, are limited to $120,500,000. For aids payable in 2010 
14.14 	and subsequent years, the total aid limitation shall be the amount of the previous year's 
14.15 	limitation, increased by the percentage increase determined for the year under subdivision 
14.16 	5. Each calendar year, $500,000 shall be retained by the commissioner of revenue to make 
14.17 	reimbursements to the commissioner of finance for payments made under section 611.27. 
14.18 	For calendar year 2004, the amount shall be in addition to the payments authorized 
14.19 	under section 477A.0124, subdivision 1. For calendar year 2005 and subsequent 
14.20 	years, The amount shall be deducted from the appropriation under this paragraph. The 
14.21 	reimbursements shall be to defray the additional costs associated with court-ordered 
14.22 	counsel under section 611.27. Any retained amounts not used for reimbursement in a year 
14.23 	shall be included in the next distribution of county need aid that is certified to the county 
14.24 	auditors for the purpose of property tax reduction for the next taxes payable year.
14.25 	(b) For aids payable in 2005, the total aids under section 477A.0124, subdivision 4, 
14.26 	are limited to $105,000,000. For aids payable in 2006 and thereafter to 2008, the total aid 
14.27 	under section 477A.0124, subdivision 4, is limited to $105,132,923. For aids payable in 
14.28 	2009, the total aid under section 477A.0124, subdivision 4, is limited to $125,132,923. 
14.29 	For aids payable in 2010 and subsequent years, the total aid limitation shall be the amount 
14.30 	of the previous year's limitation, increased by the percentage increase determined under 
14.31 	subdivision 5. The commissioner of finance shall annually bill the commissioner of 
14.32 	revenue for the cost of preparation of local impact notes as required by section 3.987, not 
14.33 	to exceed $207,000 in fiscal year 2004 and thereafter. The commissioner of education 
14.34 	shall annually bill the commissioner of revenue for the cost of preparation of local impact 
14.35 	notes for school districts as required by section 3.987, not to exceed $7,000 in fiscal year 
15.1 	2004 and thereafter. The commissioner of revenue shall deduct the amounts billed under 
15.2 	this paragraph from the appropriation under this paragraph. The amounts deducted are 
15.3 	appropriated to the commissioner of finance and the commissioner of education for the 
15.4 	preparation of local impact notes.

15.5 	Sec. 14. Minnesota Statutes 2006, section 477A.03, is amended by adding a 
15.6 	subdivision to read:
15.7 		Subd. 2c.Towns. For aids payable in 2009, the total aids paid under section 
15.8 	477A.013, subdivision 1, is limited to $5,000,000. For aids payable in 2010 and thereafter, 
15.9 	the total aids paid under section 477A.013, subdivision 1, is limited to the amount certified 
15.10 	to be paid in the previous year, adjusted for inflation as provided in subdivision 5.

15.11 	Sec. 15. Minnesota Statutes 2006, section 477A.03, is amended by adding a 
15.12 	subdivision to read:
15.13 		Subd. 5.Inflation adjustment. In 2010 and thereafter, the amounts paid under 
15.14 	subdivisions 2a, 2b, and 2c, shall be equal to the amount adjusted for inflation and shall be 
15.15 	equal to:
15.16 	(1) the amount certified to be paid under that subdivision in the previous year 
15.17 	multiplied by
15.18 	(2) one plus the percentage increase in the implicit price deflator for government 
15.19 	consumption expenditures and gross investment for state and local government as 
15.20 	prepared by the United States Department of Commerce for the 12-month period ending 
15.21 	March 31 of the previous year.
15.22 	The percentage increase used in this subdivision may not be less than 2.5 percent or 
15.23 	greater than 5.0 percent.

15.24 	Sec. 16. STATE PARKS LOCATED ON LAKE VERMILION; DISTRIBUTION 
15.25 	OF PAYMENTS IN LIEU OF TAXES.
 15.26 	(a) Notwithstanding Minnesota Statutes, section 477A.14, payments in lieu of 
15.27 	taxation under Minnesota Statutes, sections 477A.11 to 477A.145, for the land included 
15.28 	in any state park located in whole or in part on the shores of Lake Vermilion must be 
15.29 	distributed to the taxing jurisdictions containing the property as follows: one-third to the 
15.30 	school district, one-third to the township, and one-third to the county. Each of those taxing 
15.31 	jurisdictions may use the payments for their general purposes.
15.32 	(b) Notwithstanding Minnesota Statutes, section 477A.11, the payments for all lands 
15.33 	described in paragraph (a) must be made at the rate set for acquired natural resources land.

16.1 	Sec. 17. USE OF LOCAL GOVERNMENT AIDS.
 16.2 	If a city of the first class located in the metropolitan area defined in Minnesota 
16.3 	Statutes, section 473.121, subdivision 2, receives aid under Minnesota Statutes, section 
16.4 	477A.013, in any of the calendar years 2010, 2011, and 2012, that exceeds the aid it 
16.5 	received in 2008, the city may expend all or a portion of the increase for payment of 
16.6 	outstanding debt obligations of the city related to public facilities, or for neighborhood 
16.7 	revitalization activities.

16.8 	Sec. 18. STUDY OF AIDS TO LOCAL GOVERNMENTS.
 16.9 	The chairs of the senate and house of representatives committees on taxes shall each 
16.10 	appoint five members to a study group of the tax committees to examine the current 
16.11 	system of aids to local governments and make recommendations on improvements to 
16.12 	the system. Of the five members appointed by each chair, two must be members of the 
16.13 	tax committee, one who is a majority party member and one who is a minority party 
16.14 	member. The remaining members must represent local units of government. The chairs of 
16.15 	the divisions of the tax committees having jurisdiction over property taxes shall also be 
16.16 	members and shall serve as co-chairs of the study group. The study shall include, but not 
16.17 	be limited to, consideration of existing disparities in the distribution of local government 
16.18 	aid, an analysis of current law need and capacity factors as well as alternative need factors, 
16.19 	alternative analytical methods for determining correlations between factors and need, the 
16.20 	formula used to calculate aid for small cities, and volatility in the local government aid 
16.21 	distribution. The group must report on its specific recommendations to the legislature 
16.22 	by December 15, 2010.

16.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

16.24 	ARTICLE 2
16.25 	PROPERTY TAXES

16.26 	Section 1. Minnesota Statutes 2006, section 126C.01, subdivision 3, is amended to read:
16.27 		Subd. 3.Referendum market value. "Referendum market value" means the market 
16.28 	value of all taxable property, excluding property classified as class 2, noncommercial 
16.29 	4c(1), or 4c(4) under section 273.13. The portion of class 2a property consisting of the 
16.30 	house, garage, and surrounding one acre of land of an agricultural homestead is included 
16.31 	in referendum market value. Any class of property, or any portion of a class of property, 
16.32 	that is included in the definition of referendum market value and that has a class rate of 
17.1 	less than one percent under section 273.13 shall have a referendum market value equal 
17.2 	to its net tax capacity multiplied by 100. 

17.3 	EFFECTIVE DATE. This section is effective for taxes levied in 2008, payable 
17.4 	in 2009, and thereafter.

17.5 	Sec. 2. Minnesota Statutes 2006, section 126C.41, subdivision 2, is amended to read:
17.6 		Subd. 2.Retired employee health benefits. A district may levy an amount up to the 
17.7 	amount the district is required by the collective bargaining agreement in effect on March 
17.8 	30, 1992, to pay for health insurance or unreimbursed medical expenses for licensed 
17.9 	and nonlicensed employees who have terminated services in the employing district and 
17.10 	withdrawn from active teaching service or other active service, as applicable, before July 
17.11 	1, 1992 1998, if a sunset clause is in effect for the current collective bargaining agreement. 
17.12 	The total amount of the levy each year may not exceed $600,000.

17.13 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
17.14 	thereafter.

17.15 	Sec. 3. Minnesota Statutes 2006, section 216B.1646, is amended to read:
17.16 	216B.1646 RATE REDUCTION ADJUSTMENT; PROPERTY TAX 
17.17 	REDUCTION CHANGE.
17.18 	(a) The commission shall, by any method the commission finds appropriate, reduce
17.19 	adjust  the rates each electric utility subject to rate regulation by the commission charges 
17.20 	its customers to reflect, on an ongoing basis, the amount by which each utility's property 
17.21 	tax, including the state general tax, if applicable, on the personal property of its electric 
17.22 	system from taxes payable in 2001 to taxes payable in 2002 is reduced or pipeline system 
17.23 	transporting or distributing natural gas is changed under this act. The commission must 
17.24 	ensure that, to the extent feasible, each dollar of personal property tax reduction allocated 
17.25 	to Minnesota consumers retroactive to January 1, 2002, change in taxes payable in 2009 
17.26 	and subsequent years results in a dollar of savings adjustment to the utility's customers
17.27 	rates. A utility may voluntarily pass on any additional property tax savings allocated in 
17.28 	the same manner as approved by the commission under this paragraph. The adjustment 
17.29 	under this paragraph is outside of a general rate case proceeding under section 216B.16.
17.30 	(b) By April 10, 2002, Each utility shall may  submit a filing to the commission 
17.31 	containing:
17.32 	(1) certified information regarding the utility's property tax savings change allocated 
17.33 	to Minnesota retail customers; and
18.1 	(2) a proposed method of passing these savings on adjusting rates to Minnesota 
18.2 	retail customers.
18.3 	The utility shall provide the information in clause (1) to the commissioner of revenue at 
18.4 	the same time. The commissioner shall notify the commission within 30 days as to the 
18.5 	accuracy of the property tax data submitted by the utility.
18.6 	(c) For purposes of this section, "personal property" means tools, implements, and 
18.7 	machinery of the generating plant. It does not apply to transformers, transmission lines, 
18.8 	distribution lines, or any other tools, implements, and machinery that are part of an electric 
18.9 	substation, wherever located an electric system or of a pipeline system transporting or 
18.10 	distributing natural gas.

18.11 	Sec. 4. Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision 
18.12 	to read:
18.13 		Subd. 18a.Leased lands. Lands of a county, city, or town that are leased or 
18.14 	rented by that entity for noncommercial seasonal recreational or noncommercial seasonal 
18.15 	recreational residential use are exempt.

18.16 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
18.17 	thereafter.

18.18 	Sec. 5. Minnesota Statutes 2006, section 272.02, subdivision 55, is amended to read:
18.19 		Subd. 55.Electric generation facility; personal property. Notwithstanding 
18.20 	subdivision 9, clause (a), attached machinery and other personal property which is part of 
18.21 	an electric generating facility that meets the requirements of this subdivision is exempt. 
18.22 	At the time of construction, the facility must (i) be designated as an innovative energy 
18.23 	project as defined in section 216B.1694, (ii) be within a tax relief area as defined in 
18.24 	section 273.134, (iii) have access to existing railroad infrastructure within less than three 
18.25 	miles, (iv) have received by resolution approval from the governing body of the county 
18.26 	and township or city in which the proposed facility is to be located for the exemption 
18.27 	of personal property under this subdivision, and (v) be designed to host at least 500 
18.28 	megawatts of electrical generation.
18.29 	Construction of the first 500 megawatts of the facility must be commenced after 
18.30 	January 1, 2006, and before January 1, 2010 2012. Construction of up to an additional 750 
18.31 	megawatts of generation must be commenced before January 1, 2015. Property eligible 
18.32 	for this exemption does not include electric transmission lines and interconnections or gas 
18.33 	pipelines and interconnections appurtenant to the property or the facility. To qualify for an 
19.1 	exemption under this subdivision, the owner of the electric generation facility must have 
19.2 	an agreement with the host county, township or city, and school district, for payment in 
19.3 	lieu of personal property taxes to the host county, township or city, and school district.

19.4 	Sec. 6. Minnesota Statutes 2006, section 272.02, subdivision 82, is amended to read:
19.5 		Subd. 82.Biomass electric generation facility; personal property. (a) 
19.6 	Notwithstanding subdivision 9, clause (a), attached machinery and other personal property 
19.7 	which is a part of an electric generation facility, including remote boilers that comprise 
19.8 	part of the district heating system, generating up to 30 megawatts of installed capacity and 
19.9 	that meets the requirements of this subdivision is exempt. At the time of construction, the 
19.10 	facility must:
19.11 	(1) be designed to utilize a minimum 90 percent waste biomass as a fuel;
19.12 	(2) not be owned by a public utility as defined in section 216B.02, subdivision 4;
19.13 	(3) be located within a city of the first class and have its primary location at a former 
19.14 	garbage transfer station; and
19.15 	(4) be designed to have capability to provide baseload energy and district heating.
19.16 	(b) Construction of the facility must be commenced after January 1, 2004, and 
19.17 	before January 1, 2008 2010. Property eligible for this exemption does not include electric 
19.18 	transmission lines and interconnections or gas pipelines and interconnections appurtenant 
19.19 	to the property or the facility.

19.20 	EFFECTIVE DATE. This section is effective for property taxes payable in 2009 
19.21 	and thereafter.

19.22 	Sec. 7. Minnesota Statutes 2006, section 272.02, subdivision 84, is amended to read:
19.23 		Subd. 84.Electric generation facility; personal property. Notwithstanding 
19.24 	subdivision 9, clause (a), attached machinery and other personal property which is part 
19.25 	of a 10.3 megawatt run-of-the-river hydroelectric generation facility and that meets the 
19.26 	requirements of this subdivision is exempt. At the time of construction, the facility must:
19.27 	(1) utilize between 12 and 16 turbine generators at a dam site existing on March 
19.28 	31, 1994;
19.29 	(2) be located on land within 3,000 feet of a 13.8 kilovolt distribution substation; and
19.30 	(3) be eligible to receive a renewable energy production incentive payment under 
19.31 	section 216C.41.
19.32 	Construction of the facility must be commenced after April 30, 2006, and before 
19.33 	January 1, 2009 2011. Property eligible for this exemption does not include electric 
20.1 	transmission lines and interconnections or gas pipelines and interconnections appurtenant 
20.2 	to the property or the facility.

20.3 	Sec. 8. Minnesota Statutes 2006, section 272.03, subdivision 2, is amended to read:
20.4 		Subd. 2.Personal property. For the purposes of taxation, "personal property" 
20.5 	includes:
20.6 	(1) All goods, chattels, money and effects;
20.7 	(2) All ships, boats, and vessels belonging to inhabitants of this state and all capital 
20.8 	invested therein;
20.9 	(3) All improvements upon land the fee of which is vested in the United States, the 
20.10 	state, except lands held in trust by the state under section 281.25, or by a county, city, or 
20.11 	town,  and all improvements upon land the title to which is vested in any corporation 
20.12 	whose property is not subject to the same mode and rule of taxation as other property;
20.13 	(4) All stock of nursery operators, growing or otherwise;
20.14 	(5) All gas, electric, and water mains, pipes, conduits, subways, poles, and wires of 
20.15 	gas, electric light, water, heat, or power companies, and all tracks, roads, conduits, poles, 
20.16 	and wires of street railway, plank road, gravel road, and turnpike companies;
20.17 	(6) All credits over and above debts owed by the creditor;
20.18 	(7) The income of every annuity, unless the capital of the annuity is taxed within 
20.19 	this state;
20.20 	(8) All public stocks and securities;
20.21 	(9) All personal estate of moneyed corporations, whether the owners reside within 
20.22 	or without the state;
20.23 	(10) All shares in foreign corporations owned by residents of this state; and
20.24 	(11) All shares in banks organized under the laws of the United States or of this state.

20.25 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
20.26 	thereafter.

20.27 	Sec. 9. Minnesota Statutes 2006, section 273.111, subdivision 3, as amended by Laws 
20.28 	2008, chapter 154, article 13, section 26, is amended to read:
20.29 		Subd. 3. Requirements. (a) Real estate consisting of ten acres or more or a nursery 
20.30 	or greenhouse, and qualifying for classification as class 1b, 2a, or 2b under section 273.13, 
20.31 	shall be entitled to valuation and tax deferment under this section only if it is primarily
20.32 	devoted to agricultural use, and meets the qualifications in subdivision 6, and either: 
21.1 	(1) is the homestead of the owner, or of a surviving spouse, child, or sibling of the 
21.2 	owner or is real estate which is farmed with the real estate which contains the homestead 
21.3 	property; or 
21.4 	(2) has been in possession of the applicant, the applicant's spouse, parent, or sibling, 
21.5 	or any combination thereof, for a period of at least seven years prior to application for 
21.6 	benefits under the provisions of this section, or is real estate which is farmed with the 
21.7 	real estate which qualifies under this clause and is within four townships or cities or 
21.8 	combination thereof from the qualifying real estate; or 
21.9 	(3) is the homestead of a shareholder in a family farm corporation as defined in 
21.10 	section 500.24, notwithstanding the fact that legal title to the real estate may be held in the 
21.11 	name of the family farm corporation; or 
21.12 	(4) is in the possession of a nursery or greenhouse or an entity owned by a proprietor, 
21.13 	partnership, or corporation which also owns the nursery or greenhouse operations on 
21.14 	the parcel or parcels, provided that only the acreage that is used to grow nursery stock 
21.15 	qualify for treatment under this section. 
21.16 	(b) Valuation of real estate under this section is limited to parcels the ownership of 
21.17 	which is in noncorporate entities except for: 
21.18 	(1) family farm corporations organized pursuant to section 500.24; and 
21.19 	(2) corporations that derive 80 percent or more of their gross receipts from the 
21.20 	wholesale or retail sale of horticultural or nursery stock. 
21.21 	(c) Land that previously qualified for tax deferment under this section and no longer 
21.22 	qualifies because it is not primarily used for agricultural purposes but would otherwise 
21.23 	qualify under subdivisions 3 and 6 for a period of at least three years will not be required 
21.24 	to make payment of the previously deferred taxes, notwithstanding the provisions of 
21.25 	subdivision 9. Sale of the land prior to the expiration of the three-year period requires 
21.26 	payment of deferred taxes as follows: sale in the year the land no longer qualifies requires 
21.27 	payment of the current year's deferred taxes plus payment of deferred taxes for the two 
21.28 	prior years; sale during the second year the land no longer qualifies requires payment of 
21.29 	the current year's deferred taxes plus payment of the deferred taxes for the prior year; and 
21.30 	sale during the third year the land no longer qualifies requires payment of the current 
21.31 	year's deferred taxes. Deferred taxes shall be paid even if the land qualifies pursuant to 
21.32 	subdivision 11a. When such property is sold or no longer qualifies under this paragraph, or 
21.33 	at the end of the three-year period, whichever comes first, all deferred special assessments 
21.34 	plus interest are payable in equal installments spread over the time remaining until the last 
21.35 	maturity date of the bonds issued to finance the improvement for which the assessments 
21.36 	were levied. If the bonds have matured, the deferred special assessments plus interest 
22.1 	are payable within 90 days. The provisions of section 429.061, subdivision 2, apply 
22.2 	to the collection of these installments. Penalties are not imposed on any such special 
22.3 	assessments if timely paid. 

22.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

22.5 	Sec. 10. Minnesota Statutes 2006, section 273.111, subdivision 6, is amended to read:
22.6 		Subd. 6.Agricultural use. (a) Real property qualifying under subdivision 3 shall be 
22.7 	considered to be in agricultural use provided that annually:
22.8 	(1) at least 33-1/3 percent of the total family income of the owner is derived 
22.9 	therefrom, or the total production income including rental from the property is $300 plus 
22.10 	$10 per tillable acre; and
22.11 	(2) it is devoted to the production for sale of agricultural products as defined in 
22.12 	section 273.13, subdivision 23, paragraph (e); and
22.13 	(2) in the case of real estate consisting of at least ten but no more than 20 acres, in at 
22.14 	least one of the three calendar years preceding the assessment year:
22.15 	(i) the total production income from the property is no less than an amount equal 
22.16 	to five percent of the per acre agricultural value determined under subdivision 16 for the 
22.17 	county where the property is located for the previous assessment year, multiplied by the 
22.18 	number of acres in the parcel subject to this section; or
22.19 	(ii) the amount of total farm expenses shown on Schedule F of the property owner's 
22.20 	federal income tax return exceeds 25 percent of the federal adjusted gross income of the 
22.21 	owner for federal tax purposes.
22.22 	In this subdivision, "total production income" means gross income as reported for 
22.23 	federal income tax purposes on Schedule F or Schedule E for farm rental income for the 
22.24 	calendar year ending in the year preceding the assessment year.
22.25 	(b) Slough, wasteland, and woodland contiguous to or surrounded by land that is
22.26 	are not entitled to valuation and tax deferment under this section is considered to be in 
22.27 	agricultural use if under the same ownership and management unless:
22.28 	(1) it is used for agricultural production; or
22.29 	(2) it is impracticable for the assessor to separate its value from the value of the 
22.30 	production acreage.
22.31 	(c) Land that is enrolled in the Reinvest in Minnesota program under sections 
22.32 	103F.501 to 103F.535, the federal Conservation Reserve Program as contained in Public 
22.33 	Law 99-198, or a similar state or federal conservation program do not qualify for valuation 
22.34 	and assessment deferral under this section.

23.1 	Sec. 11. Minnesota Statutes 2006, section 273.111, subdivision 8, is amended to read:
23.2 		Subd. 8.Application. Application for deferment of taxes and assessment under this 
23.3 	section shall be filed by May 1 of the year prior to the year in which the taxes are payable. 
23.4 	Any application filed hereunder and granted shall continue in effect for subsequent years 
23.5 	until the property no longer qualifies. Such application shall be filed with the assessor 
23.6 	of the taxing district in which the real property is located on such the form as may be
23.7 	prescribed by the commissioner of revenue, and must include a copy of the Schedule F or 
23.8 	Schedule E showing farm rental income included in the most recently filed federal income 
23.9 	tax return of the applicant. The assessor may require proof by affidavit or otherwise that 
23.10 	the property qualifies under subdivisions 3 and 6.

23.11 	EFFECTIVE DATE. This section is effective for applications filed after May 
23.12 	1, 2008.

23.13 	Sec. 12. Minnesota Statutes 2006, section 273.111, subdivision 14, is amended to read:
23.14 		Subd. 14.Applicability of special assessment provisions. This section shall apply 
23.15 	to special local assessments levied after July 1, 1967, and payable in the years thereafter, 
23.16 	but shall not apply to any special assessments levied at any time by a county or district 
23.17 	court under the provisions of chapter 116A or by a watershed district under chapter 103D.

23.18 	EFFECTIVE DATE. This section is effective for special assessments levied after 
23.19 	May 31, 2008, or, as applied to special assessments levied before June 1, 2008, to property 
23.20 	that initially qualifies for valuation under section 273.111, for taxes levied in 2008.

23.21 	Sec. 13. Minnesota Statutes 2006, section 273.111, is amended by adding a subdivision 
23.22 	to read:
23.23 		Subd. 16.Agricultural value determination. (a) In order to account for the 
23.24 	presence of nonagricultural influences that may affect the sales of agricultural land, the 
23.25 	commissioner of revenue shall develop a fair and uniform method of determining, for each 
23.26 	county in the state, a median agricultural value that is consistent with subdivision 4. The 
23.27 	commissioner shall annually assign the resulting agricultural value to each county, and 
23.28 	this value shall be used as the median agricultural value for the county under this section. 
23.29 	(b) When property classified as agricultural is sold and the purchaser changes its use 
23.30 	in a manner that would result in a change of classification of the property, and the sale 
23.31 	price exceeds the agricultural value determined under paragraph (a), the assessor and 
23.32 	the commissioner must review the sale along with other appropriate sales information 
23.33 	to determine if there are nonagricultural influences on the value. If upon review it is 
24.1 	determined that nonagricultural factors have affected the value, the resulting sales ratio 
24.2 	shall be excluded from use in any study measuring agricultural value and applied to a 
24.3 	study measuring market value.

24.4 	EFFECTIVE DATE. This section is effective for taxes levied in 2009, payable in 
24.5 	2010 and thereafter.

24.6 	Sec. 14. Minnesota Statutes 2006, section 273.111, is amended by adding a subdivision 
24.7 	to read:
24.8 		Subd. 17.Implementation of program. This section must be applied to eligible 
24.9 	properties by all county assessors, beginning no later than assessments for taxes levied 
24.10 	in 2009, payable in 2010, and thereafter, unless the commissioner of revenue determines 
24.11 	that a county is unable to comply with this requirement, in which case the county must 
24.12 	implement it for the earliest assessment year determined by the commissioner to be 
24.13 	feasible.

24.14 	Sec. 15. [273.1115] AGGREGATE RESOURCE PRESERVATION PROPERTY 
24.15 	TAX LAW.
24.16 		Subdivision 1.Definitions. For purposes of this section, "commercial aggregate 
24.17 	deposit" and "actively mined" have the meanings given them in section 273.13, 
24.18 	subdivision 23, paragraph (h).
24.19 		Subd. 2.Requirement. Real estate is entitled to valuation under this section only if 
24.20 	all of the following requirements are met:
24.21 	(1) the property is classified 1a, 1b, 2a, or 2b property under section 273.13, 
24.22 	subdivisions 22 and 23;
24.23 	(2) the property is at least ten contiguous acres, when the application is filed under 
24.24 	subdivision 3;
24.25 	(3) the owner has filed a completed application for deferment as specified in 
24.26 	subdivision 3 with the county assessor in the county in which the property is located;
24.27 	(4) there are no delinquent taxes on the property; and
24.28 	(5) a covenant on the land restricts its use as provided in subdivision 3, clause (4).
24.29 		Subd. 3.Application. Application for valuation deferment under this section 
24.30 	must be filed by May 1 of the assessment year. Any application filed and granted 
24.31 	continues in effect for subsequent years until the property no longer qualifies, provided 
24.32 	that supplemental affidavits under subdivision 8 are timely filed. The application must 
24.33 	be filed with the assessor of the county in which the real property is located on such 
24.34 	form as may be prescribed by the commissioner of revenue. The application must be 
25.1 	executed and acknowledged in the manner required by law to execute and acknowledge a 
25.2 	deed and must contain at least the following information and any other information the 
25.3 	commissioner deems necessary:
25.4 	(1) the legal description of the area;
25.5 	(2) the name and address of owner;
25.6 	(3) a copy of the affidavit filed under section 273.13, subdivision 23, paragraph 
25.7 	(h), when property is classified as:
25.8 	(i) 2b under section 273.13, subdivision 23, paragraph (b), clause (4);
25.9 	(ii) 1b under section 273.13, subdivision 22, paragraph (b);
25.10 	(iii) 2a under section 273.13, subdivision 23, paragraph (a); or
25.11 	(iv) 2b under section 273.13, subdivision 23, paragraph (b), clauses (1) to (3).
25.12 	The application must include a similar document with the same information as 
25.13 	contained in the affidavit under section 273.13, subdivision 23, paragraph (h); and
25.14 	(4) a statement of proof from the owner that the land contains a restrictive covenant 
25.15 	limiting its use for the property's surface to that which exists on the date of the application 
25.16 	and limiting its future use to the preparation and removal of the commercial aggregate 
25.17 	deposit under its surface. To qualify under this clause, the covenant must be binding on 
25.18 	the owner or the owner's successor or assignee, and run with the land, except as provided 
25.19 	in subdivision 5 allowing for the cancellation of the covenant under certain conditions.
25.20 		Subd. 4.Determination of value. Upon timely application by the owner as provided 
25.21 	in subdivision 3, notwithstanding sections 272.03, subdivision 8, and 273.11, the value of 
25.22 	any qualifying land described in subdivision 3 must be valued as if it were agricultural 
25.23 	property, using a per acre valuation equal to the current assessment year's average per acre 
25.24 	valuation of agricultural land in the county. The assessor shall not consider any additional 
25.25 	value resulting from potential alternative and future uses of the property. The buildings 
25.26 	located on the land shall be valued by the assessor in the normal manner.
25.27 		Subd. 5.Cancellation of covenant. The covenant required under subdivision 
25.28 	3 may be canceled in two ways:
25.29 	(1) by the owner beginning with the next subsequent assessment year provided 
25.30 	that the additional taxes as determined under subdivision 7 are paid by the owner at the 
25.31 	time of cancellation; or
25.32 	(2) by the city or town in which the property is located beginning with the next 
25.33 	subsequent assessment year, if the city council or town board:
25.34 	(i) changes the conditional use of the property;
25.35 	(ii) revokes the mining permit; or
25.36 	(iii) changes the zoning to disallow mining.
26.1 	No additional taxes are imposed on the property under this clause.
26.2 		Subd. 6.County termination. Within two years of the effective date of this section, 
26.3 	a county may, following notice and public hearing, terminate application of this section 
26.4 	in the county. The termination is effective upon adoption of a resolution of the county 
26.5 	board. A county has 60 days from receipt of the first application for enrollment under 
26.6 	this section to notify the applicant and any subsequent applicants of the county's intent 
26.7 	to begin the process of terminating application of this section in the county. The county 
26.8 	must act on the termination within six months. Upon termination by a vote of the county 
26.9 	board, all applications received prior to and during notification of intent to terminate shall 
26.10 	be deemed void. If the county board does not act on the termination within six months of 
26.11 	notification, all applications for valuation for deferment received shall be deemed eligible 
26.12 	for consideration to be enrolled under this section. Following this initial 60-day grace 
26.13 	period, a termination applies prospectively and does not affect property enrolled under this 
26.14 	section prior to the termination date. A county may reauthorize application of this section 
26.15 	by a resolution of the county board revoking the termination.
26.16 		Subd. 7.Additional taxes. When real property which has been valued and assessed 
26.17 	under this section no longer qualifies, the portion of the land classified under subdivision 
26.18 	2, clause (1), is subject to additional taxes. The additional tax amount is determined by:
26.19 	(1) computing the difference between (i) the current year's taxes determined in 
26.20 	accordance with subdivision 4, and (ii) an amount as determined by the assessor based 
26.21 	upon the property's current year's estimated market value of like real estate at its highest 
26.22 	and best use and the appropriate local tax rate; and
26.23 	(2) multiplying the amount determined in clause (1) by the number of years the 
26.24 	land was in the program under this section. The current year's estimated market value as 
26.25 	determined by the assessor must not exceed the market value that would result if the 
26.26 	property was sold in an arms-length transaction and must not be greater than it would have 
26.27 	been had the actual bona fide sale price of the property been used in lieu of that market 
26.28 	value. The additional taxes must be extended against the property on the tax list for the 
26.29 	current year, except that interest or penalties must not be levied on these additional taxes if 
26.30 	timely paid. The additional tax under this subdivision must not be imposed on that portion 
26.31 	of the property which has actively been mined and has been removed from the program 
26.32 	based upon the supplemental affidavits filed under subdivision 8.
26.33 		Subd. 8.Supplemental affidavits; mining activity on land. When any portion 
26.34 	of the property begins to be actively mined, the owner must file a supplemental affidavit 
26.35 	within 60 days from the day any aggregate is removed stating the number of acres of the 
26.36 	property that is actively being mined. The acres actively being mined shall be (1) valued 
27.1 	and classified under section 273.13, subdivision 24, in the next subsequent assessment 
27.2 	year, and (2) removed from the aggregate resource preservation property tax program 
27.3 	under this section. The additional taxes under subdivision 7 must not be imposed on the 
27.4 	acres that are actively being mined and have been removed from the program under this 
27.5 	section. Copies of the original affidavit and all supplemental affidavits must be filed 
27.6 	with the county assessor, the local zoning administrator, and the Department of Natural 
27.7 	Resources, Division of Land and Minerals. A supplemental affidavit must be filed each 
27.8 	time a subsequent portion of the property is actively mined, provided that the minimum 
27.9 	acreage change is five acres, even if the actual mining activity constitutes less than five 
27.10 	acres. Failure to file the affidavits timely shall result in the property losing its valuation 
27.11 	deferment under this section, and additional taxes must be imposed as calculated under 
27.12 	subdivision 7.
27.13 		Subd. 9.Lien. The additional tax imposed by this section is a lien upon the property 
27.14 	assessed to the same extent and for the same duration as other taxes imposed upon 
27.15 	property within this state and, when collected, must be distributed in the manner provided 
27.16 	by law for the collection and distribution of other property taxes.
27.17 		Subd. 10.Continuation of tax treatment upon sale. When real property qualifying 
27.18 	under subdivision 2 is sold, additional taxes must not be extended against the property 
27.19 	if the property continues to qualify under subdivision 2, and the new owner files an 
27.20 	application with the assessor for continued deferment within 30 days after the sale.

27.21 	EFFECTIVE DATE. This section is effective for taxes assessed in 2009, payable 
27.22 	in 2010, and thereafter, except that for the 2009 assessment year, the application date 
27.23 	under subdivision 5 shall be September 1, 2009, and subdivision 6 is effective the day 
27.24 	following final enactment.

27.25 	Sec. 16. Minnesota Statutes 2006, section 273.112, subdivision 3, is amended to read:
27.26 		Subd. 3.Requirements. Real estate shall be entitled to valuation and tax deferment 
27.27 	under this section only if it is:
27.28 	(a) actively and exclusively devoted to golf, skiing, lawn bowling, croquet, polo, 
27.29 	soccer, or archery or firearms range recreational use or other recreational uses carried 
27.30 	on at the establishment;
27.31 	(b) five acres in size or more, except in the case of a lawn bowling or croquet green 
27.32 	or an archery or firearms range;
27.33 	(c)(1) operated by private individuals or, in the case of a lawn bowling or croquet 
27.34 	green, by private individuals or corporations, and open to the public; or
27.35 	(2) operated by firms or corporations for the benefit of employees or guests; or
28.1 	(3) operated by private clubs having a membership of 50 or more or open to the 
28.2 	public, provided that the club does not discriminate in membership requirements or 
28.3 	selection on the basis of sex or marital status; and
28.4 	(d) made available for use in the case of real estate devoted to golf without 
28.5 	discrimination on the basis of sex during the time when the facility is open to use by the 
28.6 	public or by members, except that use for golf may be restricted on the basis of sex no 
28.7 	more frequently than one, or part of one, weekend each calendar month for each sex and 
28.8 	no more than two, or part of two, weekdays each week for each sex.
28.9 	If a golf club membership allows use of golf course facilities by more than one adult 
28.10 	per membership, the use must be equally available to all adults entitled to use of the golf 
28.11 	course under the membership, except that use may be restricted on the basis of sex as 
28.12 	permitted in this section. Memberships that permit play during restricted times may be 
28.13 	allowed only if the restricted times apply to all adults using the membership. A golf club 
28.14 	may not offer a membership or golfing privileges to a spouse of a member that provides 
28.15 	greater or less access to the golf course than is provided to that person's spouse under the 
28.16 	same or a separate membership in that club, except that the terms of a membership may 
28.17 	provide that one spouse may have no right to use the golf course at any time while the 
28.18 	other spouse may have either limited or unlimited access to the golf course.
28.19 	A golf club may have or create an individual membership category which entitles a 
28.20 	member for a reduced rate to play during restricted hours as established by the club. The 
28.21 	club must have on record a written request by the member for such membership.
28.22 	A golf club that has food or beverage facilities or services must allow equal access 
28.23 	to those facilities and services for both men and women members in all membership 
28.24 	categories at all times. Nothing in this paragraph shall be construed to require service or 
28.25 	access to facilities to persons under the age of 21 years or require any act that would 
28.26 	violate law or ordinance regarding sale, consumption, or regulation of alcoholic beverages.
28.27 	For purposes of this subdivision and subdivision 7a, discrimination means a pattern 
28.28 	or course of conduct and not linked to an isolated incident.

28.29 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
28.30 	thereafter.

28.31 	Sec. 17. [273.113] TAX CREDIT FOR PROPERTY IN BOVINE 
28.32 	TUBERCULOSIS MANAGEMENT ZONES.
28.33 		Subdivision 1.Definition. For the purposes of this section, the following terms 
28.34 	have the meaning given to them:
29.1 	(1) "bovine tuberculosis management zone" means the area within the ten-mile 
29.2 	radius around the five presumptive tuberculosis-positive deer sampled during the fall 2006 
29.3 	hunter-harvested surveillance effort; and 
29.4 	(2) "located within" means that the herd is kept in the area for at least a part of 
29.5 	the year.
29.6 		Subd. 2.Eligibility; amount of credit. Agricultural land classified as class 2a or 2b 
29.7 	under section 273.13, subdivision 23, located in a bovine tuberculosis management zone is 
29.8 	eligible for a property tax credit if the owner has eradicated a cattle herd that had been 
29.9 	located within that land in order to prevent the onset or spreading of bovine tuberculosis. 
29.10 	The credit is equal to the property tax on the parcel where the herd had been located. To 
29.11 	begin to qualify for the tax credit, the owner shall file an application with the county by 
29.12 	January 2 of the year after the calendar year when the herd was eradicated. The credit 
29.13 	must be given for each payable tax year following the calendar year when the herd was 
29.14 	eradicated and must terminate for all payable tax years beginning after the calendar year 
29.15 	when a new herd of cattle was placed on the land. The assessor shall indicate the amount 
29.16 	of the property tax reduction on the property tax statement of each taxpayer receiving a 
29.17 	credit under this section. The credit paid pursuant to this section shall be deducted from 
29.18 	the tax due on the property as provided in section 273.1393.
29.19 		Subd. 3.Reimbursement for lost revenue. The county auditor shall certify to the 
29.20 	commissioner of revenue, as part of the abstracts of tax lists required to be filed with 
29.21 	the commissioner under section 275.29, the amount of tax lost to the county from the 
29.22 	property tax credit under subdivision 2. Any prior year adjustments must also be certified 
29.23 	in the abstracts of tax lists. The commissioner of revenue shall review the certifications to 
29.24 	determine their accuracy. The commissioner may make the changes in the certification 
29.25 	that are considered necessary or return a certification to the county auditor for corrections. 
29.26 	The commissioner shall reimburse each taxing district for the taxes lost. The payments 
29.27 	must be made at the time provided in section 273.1398, subdivision 6, for payment to 
29.28 	taxing jurisdictions in the same proportion that the ad valorem tax is distributed. The 
29.29 	amount necessary to make the reimbursements under this section is annually appropriated 
29.30 	from the general fund to the commissioner of revenue.
29.31 		Subd. 4.Termination of credit. The credit provided under this section ceases to 
29.32 	be available beginning with any assessment year following the date when the Board of 
29.33 	Animal Health has certified that the state is free of bovine tuberculosis.

29.34 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
29.35 	thereafter.

30.1 	Sec. 18. Minnesota Statutes 2006, section 273.124, subdivision 11, is amended to read:
30.2 		Subd. 11.Limitation on homestead treatment. (a) For taxes payable in 2003 
30.3 	through 2005 only, If the assessor has classified a property as both homestead and 
30.4 	nonhomestead, the greater of: (1) the value attributable to the portion of the property 
30.5 	used as a homestead;, or (2) the homestead value amount determined under paragraph 
30.6 	(b) $76,000, is entitled to assessment as a homestead under section 273.13, subdivision 
30.7 	22 or 23. 
30.8 	(b) For taxes payable in 2003 only, the homestead value amount is $60,000. For 
30.9 	taxes payable in 2004 only, the homestead value amount is $45,000. For taxes payable in 
30.10 	2005 only, the homestead value amount is $30,000.
30.11 	The homestead value amount must not exceed the property's taxable market value.
30.12 	(c) The limitation in this section does not apply to buildings containing fewer than 
30.13 	four residential units or to a single rented or leased dwelling unit located within or attached 
30.14 	to a private garage or similar structure owned by the owner of a homestead and located on 
30.15 	the premises of that homestead. If the assessor has classified a property as both homestead 
30.16 	and nonhomestead, the reductions in tax provided under sections 273.135 and 273.1391
30.17 	apply to the value of both the homestead and the nonhomestead portions of the property. 

30.18 	EFFECTIVE DATE. This section is effective for taxes levied in 2008, payable 
30.19 	in 2009, and thereafter.

30.20 	Sec. 19. Minnesota Statutes 2006, section 273.13, subdivision 23, as amended by Laws 
30.21 	2008, chapter 154, article 2, section 12, is amended to read:
30.22 		Subd. 23.Class 2. (a) Class 2a property is agricultural land including any 
30.23 	improvements that is homesteaded. The market value of the house and garage and 
30.24 	immediately surrounding one acre of land has the same class rates as class 1a property 
30.25 	under subdivision 22. The value of the remaining land including improvements up to the 
30.26 	first tier valuation limit of agricultural homestead property has a net class rate of 0.550.5 
30.27 	percent of market value. The remaining property over the first tier has a class rate of one 
30.28 	percent of market value. For purposes of this subdivision, the "first tier valuation limit of 
30.29 	agricultural homestead property" and "first tier" means the limit certified under section 
30.30 	273.11, subdivision 23.
30.31 	(b) Class 2b property is (1) unplatted real estate, rural in character and used 
30.32 	exclusively for growing trees for timber, lumber, and wood and wood products; (2) real 
30.33 	estate that is not improved with a structure and is used exclusively for growing trees 
30.34 	for timber, lumber, and wood and wood products, if the owner has participated or is 
30.35 	participating in a cost-sharing program for afforestation, reforestation, or timber stand 
31.1 	improvement on that particular property, administered or coordinated by the commissioner 
31.2 	of natural resources; (3), that consists of at least ten acres, including land used for growing 
31.3 	trees for timber, lumber, and wood and wood products, but not including land used for 
31.4 	agricultural purposes, provided that the presence of a minor, ancillary nonresidential 
31.5 	structure does not disqualify property from classification under this clause; (2) real estate 
31.6 	that is nonhomestead agricultural land; or (4) (3) a landing area or public access area of a 
31.7 	privately owned public use airport; or (4) land with a commercial aggregate deposit that is 
31.8 	not actively being mined and is not otherwise classified as class 2a under paragraph (a) or 
31.9 	2b, under clauses (1) to (3). Class 2b property has a net class rate of one percent of market 
31.10 	value, except that property described in clause (1) has a net class rate of .65 percent if it 
31.11 	consists of no more than 1,920 acres and is being managed under a forest management plan 
31.12 	that meets the requirements of chapter 290C, but is not enrolled in the sustainable forest 
31.13 	resource management incentive program, provided that the owner of the property must 
31.14 	apply to the assessor annually to receive the reduced class rate and provide the information 
31.15 	required by the assessor to verify that the property qualifies for the reduced rate.
31.16 	(c) Agricultural land as used in this section means contiguous acreage of ten 20
31.17 	acres or more, used during the preceding year for agricultural purposes. "Agricultural 
31.18 	purposes" as used in this section means the raising or cultivation of agricultural products. 
31.19 	"Agricultural purposes" also includes enrollment in the Reinvest in Minnesota program 
31.20 	under sections 103F.501 to 103F.535 or the federal Conservation Reserve Program as 
31.21 	contained in Public Law 99-198 or a similar state or federal conservation program, but only 
31.22 	if the property was classified as agricultural (i) under this subdivision for the assessment 
31.23 	year 2002 or (ii) in the year prior to its enrollment. Contiguous acreage on the same parcel, 
31.24 	or contiguous acreage on an immediately adjacent parcel under the same ownership, may 
31.25 	also qualify as agricultural land, but only if it is pasture, timber, waste, unusable wild land, 
31.26 	or land included in state or federal farm programs. Agricultural classification for property 
31.27 	shall be determined excluding the house, garage, and immediately surrounding one acre of 
31.28 	land, and shall not be based upon the market value of any residential structures on the 
31.29 	parcel or contiguous parcels under the same ownership. 
31.30 	(d) Real estate, excluding the house, garage, and immediately surrounding one acre 
31.31 	of land, of less than ten 20 acres which is exclusively and intensively used for raising or 
31.32 	cultivating agricultural products, shall be considered as agricultural land only if:
31.33 	(1) at least ten contiguous acres were tilled or pastured to produce an agricultural 
31.34 	product for sale in three of the last five years;
32.1 	(2) at least 75 percent of the acres are used exclusively for storage of grain or storage 
32.2 	of machinery or equipment used to support the agricultural activities on other parcels 
32.3 	under the same ownership;
32.4 	(3) the entire parcel is tilled or used for pasture;
32.5 	(4) the land mass contains a licensed nursery, provided that only those acres used 
32.6 	to produce nursery stock are considered agricultural land; 
32.7 	(5) the parcel is used primarily for a livestock or poultry confinement process; or
32.8 	(6) the parcel is used primarily for market farming; for purposes of this subdivision, 
32.9 	"market farming" means the cultivation of one or more fruits or vegetables or production 
32.10 	of animal or other agricultural products for sale to local markets by the farmer or an 
32.11 	organization with which the farmer is affiliated.
32.12 	Land shall be classified as agricultural even if all or a portion of the agricultural use 
32.13 	of that property is the leasing to, or use by another person for agricultural purposes.
32.14 	An assessor may classify the part of a parcel described in this paragraph that is 
32.15 	used for agricultural purposes as class 1b, 2a, or 2b, whichever is appropriate, and the 
32.16 	remainder in the class appropriate to its use.
32.17 	Classification under this subdivision is not determinative for qualifying under 
32.18 	section 273.111. 
32.19 	The property classification under this section supersedes, for property tax purposes 
32.20 	only, any locally administered agricultural policies or land use restrictions that define 
32.21 	minimum or maximum farm acreage.
32.22 	(e) The term "agricultural products" as used in this subdivision includes production 
32.23 	for sale of:
32.24 	(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 
32.25 	animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, 
32.26 	bees, and apiary products by the owner;
32.27 	(2) fish bred for sale and consumption if the fish breeding occurs on land zoned 
32.28 	for agricultural use;
32.29 	(3) the commercial boarding of horses if the boarding is done in conjunction with 
32.30 	raising or cultivating agricultural products as defined in clause (1);
32.31 	(4) property which is owned and operated by nonprofit organizations used for 
32.32 	equestrian activities, excluding racing;
32.33 	(5) game birds and waterfowl bred and raised for use on a shooting preserve licensed 
32.34 	under section 97A.115; 
32.35 	(6) insects primarily bred to be used as food for animals;
33.1 	(7) trees, grown for sale as a crop, including short rotation woody crops, and not 
33.2 	sold for timber, lumber, wood, or wood products; and
33.3 	(8) maple syrup taken from trees grown by a person licensed by the Minnesota 
33.4 	Department of Agriculture under chapter 28A as a food processor.
33.5 	(f) If a parcel used for agricultural purposes is also used for commercial or industrial 
33.6 	purposes, including but not limited to:
33.7 	(1) wholesale and retail sales;
33.8 	(2) processing of raw agricultural products or other goods;
33.9 	(3) warehousing or storage of processed goods; and
33.10 	(4) office facilities for the support of the activities enumerated in clauses (1), (2), 
33.11 	and (3),
33.12 	the assessor shall classify the part of the parcel used for agricultural purposes as class 
33.13 	1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its 
33.14 	use. The grading, sorting, and packaging of raw agricultural products for first sale is 
33.15 	considered an agricultural purpose. A greenhouse or other building where horticultural 
33.16 	or nursery products are grown that is also used for the conduct of retail sales must be 
33.17 	classified as agricultural if it is primarily used for the growing of horticultural or nursery 
33.18 	products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of 
33.19 	those products. Use of a greenhouse or building only for the display of already grown 
33.20 	horticultural or nursery products does not qualify as an agricultural purpose.
33.21 	The assessor shall determine and list separately on the records the market value of 
33.22 	the homestead dwelling and the one acre of land on which that dwelling is located. If any 
33.23 	farm buildings or structures are located on this homesteaded acre of land, their market 
33.24 	value shall not be included in this separate determination.
33.25 	(g) To qualify for classification under paragraph (b), clause (4), a privately owned 
33.26 	public use airport must be licensed as a public airport under section 360.018. For purposes 
33.27 	of paragraph (b), clause (4), "landing area" means that part of a privately owned public use 
33.28 	airport properly cleared, regularly maintained, and made available to the public for use by 
33.29 	aircraft and includes runways, taxiways, aprons, and sites upon which are situated landing 
33.30 	or navigational aids. A landing area also includes land underlying both the primary surface 
33.31 	and the approach surfaces that comply with all of the following: 
33.32 	(i) the land is properly cleared and regularly maintained for the primary purposes of 
33.33 	the landing, taking off, and taxiing of aircraft; but that portion of the land that contains 
33.34 	facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
33.35 	(ii) the land is part of the airport property; and
33.36 	(iii) the land is not used for commercial or residential purposes.
34.1 	The land contained in a landing area under paragraph (b), clause (4), must be described 
34.2 	and certified by the commissioner of transportation. The certification is effective until 
34.3 	it is modified, or until the airport or landing area no longer meets the requirements of 
34.4 	paragraph (b), clause (4). For purposes of paragraph (b), clause (4), "public access area" 
34.5 	means property used as an aircraft parking ramp, apron, or storage hangar, or an arrival 
34.6 	and departure building in connection with the airport.
34.7 	(h) To qualify for classification under paragraph (b), clause (4), the property must be 
34.8 	at least ten contiguous acres in size and the owner of the property must record with the 
34.9 	county recorder of the county in which the property is located an affidavit containing:
34.10 	(1) a legal description of the property;
34.11 	(2) a disclosure that the property contains a commercial aggregate deposit that is not 
34.12 	actively being mined but is present on the entire parcel enrolled;
34.13 	(3) documentation that the conditional use under the county or local zoning 
34.14 	ordinance of this property is for mining; and
34.15 	(4) documentation that a permit has been issued by the local unit of government 
34.16 	or the mining activity is allowed under local ordinance. The disclosure must include a 
34.17 	statement from a registered professional geologist, engineer, or soil scientist delineating 
34.18 	the deposit and certifying that it is a commercial aggregate deposit.
34.19 	For purposes of this section and section 273.1115, "commercial aggregate deposit" 
34.20 	means a deposit that will yield crushed stone or sand and gravel that is suitable for use 
34.21 	as a construction aggregate; and "actively mined" means the removal of top soil and 
34.22 	overburden in preparation for excavation or excavation of a commercial deposit.
34.23 	(i) When any portion of the property under this subdivision or subdivision 22 begins 
34.24 	to be actively mined, the owner must file a supplemental affidavit within 60 days from 
34.25 	the day any aggregate is removed stating the number of acres of the property that is 
34.26 	actively being mined. The acres actively being mined must be (1) valued and classified 
34.27 	under subdivision 24 in the next subsequent assessment year, and (2) removed from the 
34.28 	aggregate resource preservation property tax program under section 273.1115, if the 
34.29 	land was enrolled in that program. Copies of the original affidavit and all supplemental 
34.30 	affidavits must be filed with the county assessor, the local zoning administrator, and the 
34.31 	Department of Natural Resources, Division of Land and Minerals. A supplemental 
34.32 	affidavit must be filed each time a subsequent portion of the property is actively mined, 
34.33 	provided that the minimum acreage change is five acres, even if the actual mining activity 
34.34 	constitutes less than five acres.

34.35 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
34.36 	thereafter.

35.1 	Sec. 20. Minnesota Statutes 2006, section 273.13, subdivision 24, is amended to read:
35.2 		Subd. 24.Class 3. (a) Commercial and industrial property and utility real and 
35.3 	personal property is class 3a.
35.4 	(1) Except as otherwise provided, each parcel of commercial, industrial, or utility 
35.5 	real property has a class rate of 1.5 percent of the first tier of market value, and 2.0 percent 
35.6 	of the remaining market value. In the case of contiguous parcels of property owned by the 
35.7 	same person or entity, only the value equal to the first-tier value of the contiguous parcels 
35.8 	qualifies for the reduced class rate, except that contiguous parcels owned by the same 
35.9 	person or entity shall be eligible for the first-tier value class rate on each separate business 
35.10 	operated by the owner of the property, provided the business is housed in a separate 
35.11 	structure. For the purposes of this subdivision, the first tier means the first $150,000 of 
35.12 	market value. Real property owned in fee by a utility for transmission line right-of-way 
35.13 	shall be classified at the class rate for the higher tier.
35.14 	For purposes of this subdivision, parcels are considered to be contiguous even if 
35.15 	they are separated from each other by a road, street, waterway, or other similar intervening 
35.16 	type of property. Connections between parcels that consist of power lines or pipelines do 
35.17 	not cause the parcels to be contiguous. Property owners who have contiguous parcels of 
35.18 	property that constitute separate businesses that may qualify for the first-tier class rate shall 
35.19 	notify the assessor by July 1, for treatment beginning in the following taxes payable year.
35.20 	(2) All Personal property that is: (i) part of an electric generation, transmission, or 
35.21 	distribution system; or (ii), including tools, implements, and machinery, has a class rate 
35.22 	of 2.5 percent for taxes levied in 2008, payable in 2009, and 2.8 percent for taxes levied 
35.23 	in 2009, payable in 2010, and thereafter.
35.24 	(3) Personal property that is either: (i) part of a pipeline system transporting 
35.25 	or distributing water, gas, crude oil, or petroleum products; and (iii) not described in 
35.26 	clause (3), and all, including tools, implements, and machinery, or (ii) part of an electric 
35.27 	transmission or distribution system, including tools, implements, and machinery, has a 
35.28 	class rate of 2.15 percent for taxes levied in 2008, payable in 2009, and 2.25 percent for 
35.29 	taxes levied in 2009, payable in 2010, and thereafter.
35.30 	(4) Railroad operating property has a class rate as provided under clause (1) for 
35.31 	the first tier of market value and the remaining market value. In the case of multiple 
35.32 	parcels in one county that are owned by one person or entity, only one first tier amount 
35.33 	is eligible for the reduced rate.
35.34 	(3) The entire market value of personal property that is: (i) tools, implements, and 
35.35 	machinery of an electric generation, transmission, or distribution system; (ii) tools, 
35.36 	implements, and machinery of a pipeline system transporting or distributing water, gas, 
36.1 	crude oil, or petroleum products; or (iii) the (5) Personal property consisting of  mains 
36.2 	and pipes used in the distribution of steam or hot or chilled water for heating or cooling 
36.3 	buildings, has a class rate as provided under clause (1) for the remaining market value 
36.4 	in excess of the first tier.
36.5 	(b) Employment property defined in section 469.166, during the period provided 
36.6 	in section 469.170, shall constitute class 3b. The class rates for class 3b property are 
36.7 	determined under paragraph (a). 

36.8 	EFFECTIVE DATE. This section is effective for taxes levied in 2008, payable 
36.9 	in 2009, and thereafter.

36.10 	Sec. 21. Minnesota Statutes 2006, section 273.13, subdivision 25, as amended by Laws 
36.11 	2008, chapter 154, article 2, section 13, is amended to read:
36.12 		Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more 
36.13 	units and used or held for use by the owner or by the tenants or lessees of the owner 
36.14 	as a residence for rental periods of 30 days or more, excluding property qualifying for 
36.15 	class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other 
36.16 	than hospitals exempt under section 272.02, and contiguous property used for hospital 
36.17 	purposes, without regard to whether the property has been platted or subdivided. The 
36.18 	market value of class 4a property has a class rate of 1.25 percent. 
36.19 	(b) Class 4b includes: 
36.20 	(1) residential real estate containing less than four units that does not qualify as class 
36.21 	4bb, other than seasonal residential recreational property; 
36.22 	(2) manufactured homes not classified under any other provision; 
36.23 	(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead 
36.24 	farm classified under subdivision 23, paragraph (b) containing two or three units; and 
36.25 	(4) unimproved property that is classified residential as determined under subdivision 
36.26 	33. 
36.27 	The market value of class 4b property has a class rate of 1.25 percent. 
36.28 	(c) Class 4bb includes: 
36.29 	(1) nonhomestead residential real estate containing one unit, other than seasonal 
36.30 	residential recreational property; and 
36.31 	(2) a single family dwelling, garage, and surrounding one acre of property on a 
36.32 	nonhomestead farm classified under subdivision 23, paragraph (b). 
36.33 	Class 4bb property has the same class rates as class 1a property under subdivision 22. 
37.1 	Property that has been classified as seasonal residential recreational property at 
37.2 	any time during which it has been owned by the current owner or spouse of the current 
37.3 	owner does not qualify for class 4bb. 
37.4 	(d) Class 4c property includes: 
37.5 	(1) except as provided in subdivision 22, paragraph (c), or subdivision 23, paragraph 
37.6 	(b), clause (1), real and personal property devoted to temporary and seasonal residential 
37.7 	occupancy for recreation purposes, including real and personal property devoted to 
37.8 	temporary and seasonal residential occupancy for recreation purposes and not devoted to 
37.9 	commercial purposes for more than 250 days in the year preceding the year of assessment. 
37.10 	For purposes of this clause, property is devoted to a commercial purpose on a specific 
37.11 	day if any portion of the property is used for residential occupancy, and a fee is charged 
37.12 	for residential occupancy. Class 4c property must contain three or more rental units. A 
37.13 	"rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual 
37.14 	camping site equipped with water and electrical hookups for recreational vehicles. Class 
37.15 	4c property must provide recreational activities such as renting ice fishing houses, boats 
37.16 	and motors, snowmobiles, downhill or cross-country ski equipment; provide marina 
37.17 	services, launch services, or guide services; or sell bait and fishing tackle. A camping 
37.18 	pad offered for rent by a property that otherwise qualifies for class 4c is also class 4c 
37.19 	regardless of the term of the rental agreement, as long as the use of the camping pad 
37.20 	does not exceed 250 days. In order for a property to be classified as class 4c, seasonal 
37.21 	residential recreational for commercial purposes, at least 40 percent of the annual gross 
37.22 	lodging receipts related to the property must be from business conducted during 90 
37.23 	consecutive days and either (i) at least 60 percent of all paid bookings by lodging guests 
37.24 	during the year must be for periods of at least two consecutive nights; or (ii) at least 20 
37.25 	percent of the annual gross receipts must be from charges for rental of fish houses, boats 
37.26 	and motors, snowmobiles, downhill or cross-country ski equipment, or charges for marina 
37.27 	services, launch services, and guide services, or the sale of bait and fishing tackle. For 
37.28 	purposes of this determination, a paid booking of five or more nights shall be counted as 
37.29 	two bookings. Class 4c also includes commercial use real property used exclusively 
37.30 	for recreational purposes in conjunction with class 4c property devoted to temporary 
37.31 	and seasonal residential occupancy for recreational purposes, up to a total of two acres, 
37.32 	provided the property is not devoted to commercial recreational use for more than 250 
37.33 	days in the year preceding the year of assessment and is located within two miles of the 
37.34 	class 4c property with which it is used. Owners of real and personal property devoted 
37.35 	to temporary and seasonal residential occupancy for recreation purposes and all or a 
37.36 	portion of which was devoted to commercial purposes for not more than 250 days in the 
38.1 	year preceding the year of assessment desiring classification as class 4c, must submit a 
38.2 	declaration to the assessor designating the cabins or units occupied for 250 days or less in 
38.3 	the year preceding the year of assessment by January 15 of the assessment year. Those 
38.4 	cabins or units and a proportionate share of the land on which they are located must be 
38.5 	designated class 4c as otherwise provided. The remainder of the cabins or units and 
38.6 	a proportionate share of the land on which they are located will be designated as class 
38.7 	3a. The owner of property desiring designation as class 4c property must provide guest 
38.8 	registers or other records demonstrating that the units for which class 4c designation is 
38.9 	sought were not occupied for more than 250 days in the year preceding the assessment if 
38.10 	so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, 
38.11 	(4) conference center or meeting room, and (5) other nonresidential facility operated on a 
38.12 	commercial basis not directly related to temporary and seasonal residential occupancy for 
38.13 	recreation purposes does not qualify for class 4c; 
38.14 	(2) qualified property used as a golf course if: 
38.15 	(i) it is open to the public on a daily fee basis. It may charge membership fees or 
38.16 	dues, but a membership fee may not be required in order to use the property for golfing, 
38.17 	and its green fees for golfing must be comparable to green fees typically charged by 
38.18 	municipal courses; and 
38.19 	(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d). 
38.20 	A structure used as a clubhouse, restaurant, or place of refreshment in conjunction 
38.21 	with the golf course is classified as class 3a property; 
38.22 	(3) real property up to a maximum of three acres of land owned and used by a 
38.23 	nonprofit community service oriented organization and that is not used for residential 
38.24 	purposes on either a temporary or permanent basis, qualifies for class 4c provided that 
38.25 	it meets either of the following: 
38.26 	(i) the property is not used for a revenue-producing activity for more than six days 
38.27 	in the calendar year preceding the year of assessment; or 
38.28 	(ii) the organization makes annual charitable contributions and donations at least 
38.29 	equal to the property's previous year's property taxes and the property is allowed to be 
38.30 	used for public and community meetings or events for no charge, as appropriate to the 
38.31 	size of the facility. 
38.32 	For purposes of this clause, 
38.33 	(A) "charitable contributions and donations" has the same meaning as lawful 
38.34 	gambling purposes under section 349.12, subdivision 25, excluding those purposes 
38.35 	relating to the payment of taxes, assessments, fees, auditing costs, and utility payments; 
38.36 	(B) "property taxes" excludes the state general tax; 
39.1 	(C) a "nonprofit community service oriented organization" means any corporation, 
39.2 	society, association, foundation, or institution organized and operated exclusively for 
39.3 	charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 
39.4 	federal income taxation pursuant to section 501(c)(3), (10), or (19) of the Internal Revenue 
39.5 	Code of 1986, as amended through December 31, 1990; and 
39.6 	(D) "revenue-producing activities" shall include but not be limited to property or that 
39.7 	portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 
39.8 	liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 
39.9 	alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 
39.10 	insurance business, or office or other space leased or rented to a lessee who conducts a 
39.11 	for-profit enterprise on the premises. 
39.12 	Any portion of the property qualifying under item (i) which is used for revenue-producing 
39.13 	activities for more than six days in the calendar year preceding the year of assessment 
39.14 	shall be assessed as class 3a. The use of the property for social events open exclusively 
39.15 	to members and their guests for periods of less than 24 hours, when an admission is 
39.16 	not charged nor any revenues are received by the organization shall not be considered a 
39.17 	revenue-producing activity. 
39.18 	The organization shall maintain records of its charitable contributions and donations 
39.19 	and of public meetings and events held on the property and make them available upon 
39.20 	request any time to the assessor to ensure eligibility. An organization meeting the 
39.21 	requirement under item (ii) must file an application by May 1 with the assessor for 
39.22 	eligibility for the current year's assessment. The commissioner shall prescribe a uniform 
39.23 	application form and instructions; 
39.24 	(4) postsecondary student housing of not more than one acre of land that is owned by 
39.25 	a nonprofit corporation organized under chapter 317A and is used exclusively by a student 
39.26 	cooperative, sorority, or fraternity for on-campus housing or housing located within two 
39.27 	miles of the border of a college campus; 
39.28 	(5) manufactured home parks as defined in section 327.14, subdivision 3; 
39.29 	(6) real property that is actively and exclusively devoted to indoor fitness, health, 
39.30 	social, recreational, and related uses, is owned and operated by a not-for-profit corporation, 
39.31 	and is located within the metropolitan area as defined in section 473.121, subdivision 2; 
39.32 	(7) a leased or privately owned noncommercial aircraft storage hangar not exempt 
39.33 	under section 272.01, subdivision 2, and the land on which it is located, provided that: 
39.34 	(i) the land is on an airport owned or operated by a city, town, county, Metropolitan 
39.35 	Airports Commission, or group thereof; and 
40.1 	(ii) the land lease, or any ordinance or signed agreement restricting the use of the 
40.2 	leased premise, prohibits commercial activity performed at the hangar. 
40.3 	If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must 
40.4 	be filed by the new owner with the assessor of the county where the property is located 
40.5 	within 60 days of the sale; 
40.6 	(8) a privately owned noncommercial aircraft storage hangar not exempt under 
40.7 	section 272.01, subdivision 2, and the land on which it is located, provided that: 
40.8 	(i) the land abuts a public airport; and 
40.9 	(ii) the owner of the aircraft storage hangar provides the assessor with a signed 
40.10 	agreement restricting the use of the premises, prohibiting commercial use or activity 
40.11 	performed at the hangar; and 
40.12 	(9) residential real estate, a portion of which is used by the owner for homestead 
40.13 	purposes, and that is also a place of lodging, if all of the following criteria are met: 
40.14 	(i) rooms are provided for rent to transient guests that generally stay for periods 
40.15 	of 14 or fewer days; 
40.16 	(ii) meals are provided to persons who rent rooms, the cost of which is incorporated 
40.17 	in the basic room rate; 
40.18 	(iii) meals are not provided to the general public except for special events on fewer 
40.19 	than seven days in the calendar year preceding the year of the assessment; and
40.20 	(iv) the owner is the operator of the property; and
40.21 	(v) real property up to a maximum of three acres and operated as a restaurant 
40.22 	as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake 
40.23 	as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B) 
40.24 	is either devoted to commercial purposes for not more than 250 consecutive days, or 
40.25 	receives at least 60 percent of its annual gross receipts from business conducted during 
40.26 	four consecutive months. Gross receipts from the sale of alcoholic beverages must be 
40.27 	included in determining the property's qualification under subitem (B). The property's 
40.28 	primary business must be as a restaurant and not as a bar. Gross receipts from gift shop 
40.29 	sales located on the premises must be excluded. Owners of real property desiring 4c 
40.30 	classification under this clause must submit an annual declaration to the assessor by 
40.31 	February 1 of the current assessment year, based on the property's relevant information for 
40.32 	the preceding assessment year. 
40.33 	The market value subject to the 4c classification under this clause is limited to five rental 
40.34 	units. Any rental units on the property in excess of five, must be valued and assessed as 
40.35 	class 3a. The portion of the property used for purposes of a homestead by the owner must 
40.36 	be classified as class 1a property under subdivision 22. 
41.1 	Class 4c property has a class rate of 1.5 percent of market value, except that (i) each 
41.2 	parcel of seasonal residential recreational property not used for commercial purposes has 
41.3 	the same class rates as class 4bb property, (ii) manufactured home parks assessed under 
41.4 	clause (5) have the same class rate as class 4b property, (iii) (ii) commercial-use seasonal 
41.5 	residential recreational property has a class rate of one percent for the first $500,000 of 
41.6 	market value, and 1.25 percent for the remaining market value, (iv) (iii) the market value 
41.7 	of property described in clause (4) has a class rate of one percent, (v) (iv) the market value 
41.8 	of property described in clauses (2) and (6) has a class rate of 1.25 percent, and (vi) (v)
41.9 	that portion of the market value of property in clause (9) qualifying for class 4c property 
41.10 	has a class rate of 1.25 percent. 
41.11 	(e) Class 4d property is qualifying low-income rental housing certified to the assessor 
41.12 	by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion 
41.13 	of the units in the building qualify as low-income rental housing units as certified under 
41.14 	section 273.128, subdivision 3, only the proportion of qualifying units to the total number 
41.15 	of units in the building qualify for class 4d. The remaining portion of the building shall be 
41.16 	classified by the assessor based upon its use. Class 4d also includes the same proportion of 
41.17 	land as the qualifying low-income rental housing units are to the total units in the building. 
41.18 	For all properties qualifying as class 4d, the market value determined by the assessor must 
41.19 	be based on the normal approach to value using normal unrestricted rents. 
41.20 	Class 4d property has a class rate of 0.75 percent. 

41.21 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
41.22 	thereafter.

41.23 	Sec. 22. Minnesota Statutes 2006, section 273.13, subdivision 33, is amended to read:
41.24 		Subd. 33.Classification of unimproved property. (a) All real property that is not 
41.25 	improved with a structure must be classified according to its current use.
41.26 	(b) Except as provided in subdivision 23, paragraph (b), clause (1), real property that 
41.27 	is not improved with a structure and for which there is no identifiable current use must be 
41.28 	classified according to its highest and best use permitted under the local zoning ordinance. 
41.29 	If the ordinance permits more than one use, the land must be classified according to the 
41.30 	highest and best use permitted under the ordinance. If no such ordinance exists, the 
41.31 	assessor shall consider the most likely potential use of the unimproved land based upon 
41.32 	the use made of surrounding land or land in proximity to the unimproved land.

41.33 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
41.34 	thereafter.

42.1 	Sec. 23. Minnesota Statutes 2007 Supplement, section 273.1393, is amended to read:
42.2 	273.1393 COMPUTATION OF NET PROPERTY TAXES.
42.3 	Notwithstanding any other provisions to the contrary, "net" property taxes are 
42.4 	determined by subtracting the credits in the order listed from the gross tax:
42.5 	(1) disaster credit as provided in sections 273.1231 to 273.1235; 
42.6 	(2) powerline credit as provided in section 273.42; 
42.7 	(3) agricultural preserves credit as provided in section 473H.10; 
42.8 	(4) enterprise zone credit as provided in section 469.171; 
42.9 	(5) disparity reduction credit;
42.10 	(6) conservation tax credit as provided in section 273.119; 
42.11 	(7) homestead and agricultural credits as provided in section 273.1384; 
42.12 	(8) taconite homestead credit as provided in section 273.135; and
42.13 	(9) supplemental homestead credit as provided in section 273.1391; and
42.14 	(10) the bovine tuberculosis eradication credit. 
42.15 	The combination of all property tax credits must not exceed the gross tax amount.

42.16 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
42.17 	thereafter.

42.18 	Sec. 24. Minnesota Statutes 2006, section 273.19, subdivision 1, is amended to read:
42.19 		Subdivision 1.Tax-exempt property; lease. Except as provided in subdivision 3 or 
42.20 	4, tax-exempt property held under a lease for a term of at least one year, and not taxable 
42.21 	under section 272.01, subdivision 2, or under a contract for the purchase thereof, shall be 
42.22 	considered, for all purposes of taxation, as the property of the person holding it. In this 
42.23 	subdivision, "tax-exempt property" means property owned by the United States, the state, 
42.24 	a school, or any religious, scientific, or benevolent society or institution, incorporated or 
42.25 	unincorporated, or any corporation whose property is not taxed in the same manner as 
42.26 	other property. This subdivision does not apply to property exempt from taxation under 
42.27 	section 272.01, subdivision 2, paragraph (b), clauses (2), (3), and (4), and does not apply 
42.28 	to federal or state government fee land that is leased or rented for noncommercial seasonal 
42.29 	recreational or noncommercial seasonal recreational residential use. 

42.30 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
42.31 	thereafter.

42.32 	Sec. 25. Minnesota Statutes 2006, section 275.025, subdivision 1, is amended to read:
43.1 		Subdivision 1.Levy amount. The state general levy is levied against 
43.2 	commercial-industrial property and seasonal residential recreational property, as defined 
43.3 	in this section. The state general levy base amount is $592,000,000 for taxes payable in 
43.4 	2002. For taxes payable in subsequent years, the levy base amount is increased each 
43.5 	year by multiplying the levy base amount for the prior year by the sum of one plus 2009 
43.6 	is determined by increasing $746,900,000 by the rate of increase, if any, in the implicit 
43.7 	price deflator for government consumption expenditures and gross investment for state 
43.8 	and local governments prepared by the Bureau of Economic Analysts of the United States 
43.9 	Department of Commerce for the 12-month period ending March 31 of the year prior to 
43.10 	the year the taxes are payable. For taxes payable in 2010 and subsequent years, the tax is 
43.11 	imposed at the rate set under this section for taxes payable in 2009. The tax under this 
43.12 	section is not treated as a local tax rate under section 469.177 and is not the levy of a 
43.13 	governmental unit under chapters 276A and 473F.
43.14 	The commissioner shall increase or decrease the preliminary or final rate for a year 
43.15 	as necessary to account for errors and tax base changes that affected a preliminary or final 
43.16 	rate for either of the two preceding years. Adjustments are allowed to the extent that the 
43.17 	necessary information is available to the commissioner at the time the rates for a year must 
43.18 	be certified, and for the following reasons:
43.19 	(1) an erroneous report of taxable value by a local official;
43.20 	(2) an erroneous calculation by the commissioner; and
43.21 	(3) an increase or decrease in taxable value for commercial-industrial or seasonal 
43.22 	residential recreational property reported on the abstracts of tax lists submitted under 
43.23 	section 275.29 that was not reported on the abstracts of assessment submitted under 
43.24 	section 270C.89 for the same year.
43.25 	The commissioner may, but need not, make adjustments if the total difference in the tax 
43.26 	levied for the year would be less than $100,000.

43.27 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
43.28 	thereafter.

43.29 	Sec. 26. Minnesota Statutes 2006, section 275.025, subdivision 2, is amended to read:
43.30 		Subd. 2.Commercial-industrial tax capacity. For the purposes of this section, 
43.31 	"commercial-industrial tax capacity" means the tax capacity of all taxable property 
43.32 	classified as class 3 or class 5(1) under section 273.13, except for electric generation 
43.33 	attached machinery under class 3 and property described in section 473.625. County 
43.34 	commercial-industrial tax capacity amounts are not adjusted for the captured net tax 
44.1 	capacity of a tax increment financing district under section 469.177, subdivision 2, the 
44.2 	net tax capacity of transmission lines deducted from a local government's total net tax 
44.3 	capacity under section 273.425, or fiscal disparities contribution and distribution net 
44.4 	tax capacities under chapter 276A or 473F. 

44.5 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
44.6 	thereafter.

44.7 	Sec. 27. Minnesota Statutes 2006, section 275.025, subdivision 4, is amended to read:
44.8 		Subd. 4.Apportionment and Levy of state general tax. Ninety-five percent of the 
44.9 	state general tax must be levied by applying a uniform rate to all commercial-industrial tax 
44.10 	capacity and five percent of the state general tax must be levied by applying a uniform 
44.11 	rate to all seasonal residential recreational tax capacity. On or before October 1 each year, 
44.12 	the commissioner of revenue shall certify the preliminary state general levy rates to each 
44.13 	county auditor that must be used to prepare the notices of proposed property taxes for taxes 
44.14 	payable in the following year. By January 1 of each year, the commissioner shall certify 
44.15 	the final state general levy rate to each county auditor that shall be used in spreading taxes.

44.16 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
44.17 	thereafter.

44.18 	Sec. 28. Minnesota Statutes 2006, section 275.065, is amended by adding a subdivision 
44.19 	to read:
44.20 		Subd. 1d.Failure to certify proposed levy.  If a taxing authority fails to certify 
44.21 	its proposed levy by the due dates specified under subdivisions 1, 1a, and 1c, the county 
44.22 	auditor shall use the authority's previous year's final levy under section 275.07, subdivision 
44.23 	1, for purposes of determining its proposed property tax notices and public advertisements 
44.24 	under this section. 

44.25 	EFFECTIVE DATE. This section is effective for notices prepared in 2008, for 
44.26 	property taxes payable in 2009, and thereafter.

44.27 	Sec. 29. Minnesota Statutes 2006, section 278.05, subdivision 6, as amended by Laws 
44.28 	2008, chapter 154, article 2, section 20, is amended to read:
44.29 		Subd. 6. Dismissal of petition Sanctions; exclusion of certain evidence. (a) 
44.30 	In cases where If the petitioner contests the valuation of income-producing property, the 
44.31 	petitioner must produce the following information, including income and expense figures 
44.32 	in the form of:
45.1 	 (1) year-end financial statements for the fiscal year prior to the assessment date,;
45.2 	 (2) year-end financial statements for the fiscal year of ending in the assessment 
45.3 	date, and year;
45.4 	 (3) rent rolls on as of the assessment date including tenant name, lease start and 
45.5 	end dates, option terms, base rent, square footage leased and vacant space, verified net 
45.6 	rentable areas in the form of;
45.7 	(4) net rentable square footage of the building or buildings,; and
45.8 	(5)anticipated income and expenses in the form of proposed budgets for the fiscal 
45.9 	year subsequent to the year of after the assessment date, year.
45.10 	The information  must be provided to the county assessor no later than 60 days after 
45.11 	the applicable filing deadline contained in section 278.01, subdivision 1 or 4. Failure to 
45.12 	provide the information required in this paragraph shall result in the dismissal of the 
45.13 	petition, unless (1) the failure to provide it was due to the unavailability of the evidence at 
45.14 	the time that the information was due, or (2) sanctions under Rule 37 of the Minnesota 
45.15 	Rules of Civil Procedure. It shall be a defense to a motion for sanctions under this 
45.16 	subdivision if the petitioner demonstrates that the required information was not available 
45.17 	at the time of the required production under this subdivision, or that the petitioner was not 
45.18 	aware of or informed by the county assessor of the requirement to provide the information. 
45.19 	If the petitioner proves that the requirements under clause (2) are met, the petitioner has 
45.20 	an additional 30 days to provide the information from the time the petitioner became 
45.21 	aware of or was informed of the requirement to provide the information, otherwise the 
45.22 	petition shall be dismissed. 
45.23 	(b) Provided that the information as contained in paragraph (a) is timely submitted to 
45.24 	the county assessor, the county assessor shall furnish the petitioner at least five days before 
45.25 	the hearing under this chapter with the property's appraisal, if any, which will be presented 
45.26 	to the court at the hearing. The petitioner shall furnish to the county assessor at least five 
45.27 	days before the hearing under this chapter with the property's appraisal, if any, which will 
45.28 	be presented to the court at the hearing. An appraisal of the petitioner's property done by or 
45.29 	for the county either party shall not be admissible as evidence if the county assessor does 
45.30 	not comply with the provisions in this paragraph. The petition shall be dismissed if the 
45.31 	petitioner that party does not comply with the provisions in of this paragraph subdivision. 

45.32 	EFFECTIVE DATE. This section is effective for petitions filed for taxes payable in 
45.33 	2009 and thereafter.

46.1 	Sec. 30. Minnesota Statutes 2006, section 280.39, as amended by Laws 2008, chapter 
46.2 	154, article 2, section 22, is amended to read:
46.3 	280.39 DELINQUENT TAXES MAY BE PAID IN INVERSE ORDER. 
46.4 	In any case where taxes for two or more years are delinquent against a parcel of land, 
46.5 	the taxes, or a portion of them, if held by the state, may be paid in the inverse order to 
46.6 	that in which the taxes were levied, with accrued penalties, interest, and costs upon the 
46.7 	taxes so paid, without payment of the taxes for the first of such years; provided, that 
46.8 	such payment shall not affect the lien of any unpaid taxes or tax judgment. Payments for 
46.9 	delinquent taxes for a part of a year may be accepted if payment is received under section 
46.10 	290A.10, and must be applied in the order specified in this section.

46.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

46.12 	Sec. 31. Minnesota Statutes 2006, section 290A.10, is amended to read:
46.13 	290A.10 PROOF OF TAXES PAID.
46.14 		Subdivision 1.Generally. Every claimant who files a claim for relief for property 
46.15 	taxes payable shall include with the claim a property tax statement or a reproduction 
46.16 	thereof in a form deemed satisfactory by the commissioner of revenue indicating that 
46.17 	there are no delinquent property taxes on the homestead. Indication on the property tax 
46.18 	statement from the county treasurer that there are no delinquent taxes on the homestead 
46.19 	shall be sufficient proof. Taxes included in a confession of judgment under section 279.37
46.20 	shall not constitute delinquent taxes as long as the claimant is current on the payments 
46.21 	required to be made under section 279.37. 
46.22 		Subd. 2.Delinquent taxes. The governing body of a county may, by resolution, 
46.23 	allow claimants who would otherwise qualify for a refund, except for a property tax 
46.24 	delinquency under sections 279.02 and 279.03 on the homestead, to be eligible for 
46.25 	the refund but only if the refund is sent by electronic payment to the county where 
46.26 	the homestead on which property taxes are delinquent is located, to be applied to the 
46.27 	claimant's delinquent taxes under section 280.39.

46.28 	EFFECTIVE DATE. This section is effective for claims based on taxes payable in 
46.29 	2009 and thereafter.

46.30 	Sec. 32. Minnesota Statutes 2006, section 365.243, is amended by adding a subdivision 
46.31 	to read:
46.32 		Subd. 3.Levy for first responder association. A county board may annually levy 
46.33 	taxes on property located within the area of unorganized territory to which a first responder 
47.1 	or fire protection association provides first responder services. By July 1 of the levy year, 
47.2 	the association must certify to the county board the area of the unorganized township to 
47.3 	which the association will provide first responder services during the following calendar 
47.4 	year. The proceeds of the levy must be distributed to the association.

47.5 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
47.6 	thereafter.

47.7 	Sec. 33. Minnesota Statutes 2006, section 365A.095, is amended to read:
47.8 	365A.095 PETITION FOR REMOVAL OF DISTRICT; PROCEDURE; 
47.9 	REFUND OF SURPLUS.
47.10 		Subdivision 1.Petition; procedure. A petition signed by at least 75 percent of the 
47.11 	property owners in the territory of the subordinate service district requesting the removal 
47.12 	of the district may be presented to the town board. Within 30 days after the town board 
47.13 	receives the petition, the town clerk shall determine the validity of the signatures on 
47.14 	the petition. If the requisite number of signatures are certified as valid, the town board 
47.15 	must hold a public hearing on the petitioned matter. Within 30 days after the end of 
47.16 	the hearing, the town board must decide whether to discontinue the subordinate service 
47.17 	district, continue as it is, or take some other action with respect to it.
47.18 		Subd. 2.Option to refund surplus. If the district is removed under subdivision 1, 
47.19 	after all outstanding obligations of the district have been paid in full, the town board may 
47.20 	vote to refund any surplus tax revenue or service charge, or any part of it, collected from 
47.21 	the district under section 365A.08. The refund must be distributed equally to the owners 
47.22 	of any property within the discontinued district that were charged the extra tax or service 
47.23 	fee during the most recent tax year for which the tax or service fee was imposed. Any 
47.24 	surplus not refunded under this section must be transferred to the town's general fund.

47.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

47.26 	Sec. 34. Minnesota Statutes 2006, section 473.446, subdivision 2, is amended to read:
47.27 		Subd. 2.Transit taxing district. The metropolitan transit taxing district is hereby 
47.28 	designated as that portion of the metropolitan transit area lying within the following 
47.29 	named cities, towns, or unorganized territory within the counties indicated:
47.30 	(a) Anoka County. Anoka, Blaine, Centerville, Columbia Heights, Coon Rapids, 
47.31 	Fridley, Circle Pines, Hilltop, Lexington, Lino Lakes, Spring Lake Park;
47.32 	(b) Carver County. Chanhassen, the city of Chaska;
48.1 	(c) Dakota County. Apple Valley, Burnsville, Eagan, Inver Grove Heights, Lilydale, 
48.2 	Mendota, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake, West St. Paul;
48.3 	(d) Ramsey County. All of the territory within Ramsey County;
48.4 	(e) Hennepin County. Bloomington, Brooklyn Center, Brooklyn Park, Champlin, 
48.5 	Chanhassen, Crystal, Deephaven, Eden Prairie, Edina, Excelsior, Golden Valley, 
48.6 	Greenwood, Hopkins, Long Lake, Maple Grove, Medicine Lake, Minneapolis, 
48.7 	Minnetonka, Minnetonka Beach, Mound, New Hope, Orono, Osseo, Plymouth, Richfield, 
48.8 	Robbinsdale, St. Anthony, St. Louis Park, Shorewood, Spring Park, Tonka Bay, Wayzata, 
48.9 	Woodland, the unorganized territory of Hennepin County;
48.10 	(f) Scott County. Prior Lake, Savage, Shakopee;
48.11 	(g) Washington County. Baytown, the city of Stillwater, White Bear Lake, Bayport, 
48.12 	Birchwood, Cottage Grove, Dellwood, Lake Elmo, Landfall, Mahtomedi, Newport, 
48.13 	Oakdale, Oak Park Heights, Pine Springs, St. Paul Park, Willernie, Woodbury means the 
48.14 	metropolitan area.
48.15 	The Metropolitan Council in its sole discretion may provide transit service by 
48.16 	contract beyond the boundaries of the metropolitan transit taxing district or to cities and 
48.17 	towns within the taxing district which are receiving financial assistance under section 
48.18 	473.388, upon petition therefor by an interested city, township or political subdivision 
48.19 	within the metropolitan transit area. The Metropolitan Council may establish such 
48.20 	terms and conditions as it deems necessary and advisable for providing the transit 
48.21 	service, including such combination of fares and direct payments by the petitioner as 
48.22 	will compensate the council for the full capital and operating cost of the service and the 
48.23 	related administrative activities of the council. The amount of the levy made by any 
48.24 	municipality to pay for the service shall be disregarded when calculation of levies subject 
48.25 	to limitations is made, provided that cities and towns receiving financial assistance under 
48.26 	section 473.388 shall not make a special levy under this subdivision without having first 
48.27 	exhausted the available local transit funds as defined in section 473.388. The council shall 
48.28 	not be obligated to extend service beyond the boundaries of the taxing district, or to cities 
48.29 	and towns within the taxing district which are receiving financial assistance under section 
48.30 	473.388, under any law or contract unless or until payment therefor is received. 

48.31 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
48.32 	thereafter.

48.33 	Sec. 35. Minnesota Statutes 2006, section 473.446, subdivision 8, is amended to read:
48.34 		Subd. 8.State review. The commissioner of revenue shall certify the council's levy 
48.35 	limitation under this section to the council by August 1 of the levy year. The council 
49.1 	must certify its proposed property tax levy under this section to the commissioner of 
49.2 	revenue by September 1 of the levy year. The commissioner of revenue shall annually 
49.3 	determine whether the property tax for transit purposes certified by the council for levy 
49.4 	following the adoption of its proposed budget is within the levy limitation imposed by 
49.5 	subdivisionssubdivision 1 and 1b. Thecommissioner shall also annually determine 
49.6 	whether the transit tax imposed on all taxable property within the metropolitan transit area 
49.7 	but outside of the metropolitan transit taxing district is within the levy limitation imposed 
49.8 	by subdivision 1a. The determination must be completed prior to September 10 of each 
49.9 	year. If current information regarding market valuation in any county is not transmitted to 
49.10 	the commissioner in a timely manner, the commissioner may estimate the current market 
49.11 	valuation within that county for purposes of making the calculations.

49.12 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
49.13 	thereafter.

49.14 	Sec. 36. Laws 2008, chapter 154, article 2, section 27, is amended to read:
49.15 	[360.0427] TAX LEVY MAY BE CERTIFIED BY AN AIRPORT 
49.16 	AUTHORITY. 
49.17 	In any year in which it imposes Imposition of a property tax levy under sections 
49.18 	275.065 to 275.07, which requires an affirmative vote of at least two-thirds of the members 
49.19 	of the authority, an airport authority must submit its proposed levy to the governing body 
49.20 	of the municipality that contains the airport. The municipal governing body may approve 
49.21 	or modify the amount of the levy, and, when it has determined the amount, the authority 
49.22 	must certify to the auditor of the county where the airport is located the amount to be 
49.23 	levied on all taxable property within the boundaries of the airport authority. 

49.24 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
49.25 	thereafter.

49.26 	Sec. 37. ASSESSMENT OF PROPERTIES OF PURELY PUBLIC CHARITIES.
 49.27 		Subdivision 1.Application. To facilitate a review by the 2009 legislature of the 
49.28 	property tax exemption for property of nonprofit organizations as purely public charities 
49.29 	and the development of standards and criteria for the tax status of these facilities, this 
49.30 	section:
49.31 	(1) requires the commissioner of revenue to conduct an analysis of standards applied 
49.32 	to determine the tax status of these organizations; and 
50.1 	(2) prohibits changes in assessment practices and policies regarding the property of 
50.2 	these organizations.
50.3 		Subd. 2.Report by commissioner of revenue. The commissioner of revenue shall 
50.4 	survey all county assessors on the tax status of property of institutions of purely public 
50.5 	charity located in the state, and report the findings to the chairs of the house and senate 
50.6 	Tax Committees by February 1, 2009.
50.7 		Subd. 3.Moratorium on changes in assessment practices. (a) An assessor 
50.8 	may not change the current practices or policies used generally in assessing property 
50.9 	of institutions of purely public charities.
50.10 	(b) An assessor may not change the assessment of existing property of an 
50.11 	organization of purely public charity, unless the change is made as a result of a change in 
50.12 	ownership, occupancy, or use of the facility, or, for currently taxable properties, a change 
50.13 	in market value of the property.
50.14 	(c) This subdivision expires on the earlier of:
50.15 	(1) the enactment of legislation establishing criteria for the property taxation of 
50.16 	purely public charities; or
50.17 	(2) final adjournment of the 2009 regular legislative session.

50.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

50.19 	Sec. 38. COMFORT LAKE-FOREST LAKE WATERSHED DISTRICT.
 50.20 	Notwithstanding any law to the contrary, the Comfort Lake-Forest Lake Watershed 
50.21 	District established under Minnesota Statutes, chapter 103D, shall be considered a 
50.22 	watershed management organization as defined in Minnesota Statutes, section 103B.205, 
50.23 	subdivision 13. The Comfort Lake-Forest Lake Watershed District shall manage or plan 
50.24 	for the management of surface water within the watershed district boundary in Chisago 
50.25 	and Washington Counties as it existed on April 1, 2008, through the authorities contained 
50.26 	in Minnesota Statutes, sections 103B.205 to 103B.255 and chapter 103D.

50.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

50.28 	Sec. 39. ST. LOUIS COUNTY; DEBT SERVICE FOR SANITARY DISTRICT 
50.29 	BONDS.
 50.30 	In any year in which the revenues derived from the mortgage and deed tax imposed 
50.31 	under Minnesota Statutes, section 383C.799, are insufficient to pay when due one-half of 
50.32 	the debt service on the Duluth-North Shore Sanitary District bonds, series 2002, which 
50.33 	were sold to pay for construction of the sanitary sewer collection system, St. Louis County 
51.1 	must provide to the Duluth-North Shore Sanitary District any additional amount sufficient 
51.2 	to pay the debt service. Total payments for all years under Minnesota Statutes, section 
51.3 	383C.799, and this section must not exceed $4,500,000.

51.4 	Sec. 40. STUDY OF AGRICULTURAL VALUES; REPORT TO THE 
51.5 	LEGISLATURE.
 51.6 	The commissioner of revenue shall study the valuation of agricultural property 
51.7 	in the state by creating a study group composed of assessors, agricultural economists, 
51.8 	and representatives of the Department of Agriculture. The results of the study must be 
51.9 	presented to the chairs of the senate and house committees on taxes by January 15, 2009.

51.10 	Sec. 41.  REPEALER.
 51.11 	Minnesota Statutes 2006, sections 272.027, subdivision 3; 275.025, subdivision 3; 
51.12 	279.01, subdivision 4; and 473.4461, are repealed.

51.13 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
51.14 	thereafter.

51.15 	ARTICLE 3
51.16 	SENIOR CITIZENS PROPERTY TAX CAP

51.17 	Section 1. [290D.01] MAXIMUM HOMESTEAD PROPERTY TAX PROGRAM.
51.18 		Subdivision 1.Maximum homestead property tax. The property taxes payable 
51.19 	by a qualified taxpayer on a qualified homestead must not exceed the lesser of (1) the 
51.20 	maximum tax amount determined under subdivision 2, or (2) the amount otherwise 
51.21 	provided by law without regard to the provisions of this chapter.
51.22 		Subd. 2.Determination of maximum tax amount. The maximum tax amount is 
51.23 	the amount of property taxes payable in the base year, but increased by any tax amounts 
51.24 	attributable to (1) an increase after the base year in the square footage of the dwelling, 
51.25 	(2) the market value of any other improvements made after the base year exceeding 15 
51.26 	percent of the estimated market value of the homestead for the assessment year prior to 
51.27 	the year the improvements are initially assessed, or (3) voter-approved levies exceeding 
51.28 	the amount attributable to voter-approved levies in the base year.

51.29 	Sec. 2. [290D.02] DEFINITIONS.
51.30 	(a) For purposes of this chapter, the terms in this section have the meanings given 
51.31 	them.
52.1 	(b) "Base year" means the taxes payable year in which the taxpayer is qualified 
52.2 	and in which the taxpayer has applied to the commissioner of revenue and been initially 
52.3 	approved for the program for taxes payable in the following year by the commissioner 
52.4 	under section 290D.04.
52.5 	(c) "Property taxes payable" means the net property taxes payable on the qualified 
52.6 	homestead excluding special assessments, interest, and penalties, and before any refund 
52.7 	under chapter 290A.
52.8 	(d) "Qualified homestead" means the dwelling occupied as the taxpayer's principal 
52.9 	residence and so much of the land surrounding it as is reasonably necessary for use of 
52.10 	the dwelling as a home and any other property used for purposes of a homestead as 
52.11 	defined in section 273.13, subdivisions 22 and 23, but not to exceed the immediately 
52.12 	surrounding one acre of land in the case of homestead property classified under section 
52.13 	273.13, subdivision 23. The homestead may be part of a multidwelling building and the 
52.14 	land on which it is built.
52.15 	(e) "Qualified taxpayer" means a person who meets the program participation 
52.16 	requirements in section 290D.03.

52.17 	Sec. 3. [290D.03] PROGRAM PARTICIPATION REQUIREMENTS; 
52.18 	QUALIFIED TAXPAYER.
52.19 	The qualifications for participation in the maximum homestead property tax program 
52.20 	are as follows:
52.21 	(1) the property must be owned and occupied as a homestead in a county that has 
52.22 	approved the program by a person 65 years of age or older. In the case of a married 
52.23 	couple, both the spouses must be at least 65 years old regardless of whether the property is 
52.24 	titled in the name of one spouse or both spouses, or titled in another way that permits the 
52.25 	property to have homestead status;
52.26 	(2) the taxpayer's total household income, as defined in section 290A.03, subdivision 
52.27 	5, for the calendar year preceding the year of the initial application may not exceed 
52.28 	$40,000; and
52.29 	(3) the homestead must have been owned and occupied as the homestead of at least 
52.30 	one of the taxpayers for at least 25 years prior to the year the initial application is filed, 
52.31 	regardless of whether the property is titled in the name of one spouse or both spouses, or a 
52.32 	surviving spouse, or titled in any other way that permits the property to have homestead 
52.33 	classification.

52.34 	Sec. 4. [290D.04] APPLICATION.
53.1 		Subdivision 1.Initial application. A qualified taxpayer may apply to the 
53.2 	commissioner of revenue for participation in the program. Applications are due on 
53.3 	or before June 1 for taxes payable the following year. A taxpayer may apply in the 
53.4 	year in which the taxpayer becomes 65 years old. The application, prescribed by the 
53.5 	commissioner of revenue, must include:
53.6 	(1) the name, address, and Social Security number of the owner or owners;
53.7 	(2) a copy of the property tax statement for the current payable year for the 
53.8 	homestead property;
53.9 	(3) the initial year of ownership and occupancy as a homestead;
53.10 	(4) the owner's household income for the previous calendar year; and
53.11 	(5) any other information the commissioner deems necessary.
53.12 		Subd. 2.Approval; notification. The commissioner shall approve an initial 
53.13 	application that qualifies under this chapter and shall notify the taxpayer on or before 
53.14 	September 1. The commissioner may investigate the facts or require confirmation in 
53.15 	regard to an application.
53.16 		Subd. 3.Excess-income certification by taxpayer. The maximum tax amount does 
53.17 	not apply for any assessment year for a taxpayer whose total household income for the 
53.18 	previous year exceeds $40,000. A taxpayer whose initial application has been approved 
53.19 	under subdivision 2 shall notify the commissioner of revenue in writing by June 1 if the 
53.20 	taxpayer's household income for the preceding calendar year exceeded $40,000. The 
53.21 	certification must state the homeowner's total household income for the previous calendar 
53.22 	year. Participation in the program under this chapter is not allowed in any year following 
53.23 	the year in which a program participant filed or should have filed an excess-income 
53.24 	certification under this subdivision, unless the participant has filed a resumption of 
53.25 	eligibility certification as described in subdivision 4. On or before September 1 each year, 
53.26 	the commissioner shall notify the county auditor that the homestead no longer qualifies for 
53.27 	a maximum tax amount.
53.28 		Subd. 4.Resumption of eligibility certification by taxpayer. A taxpayer who has 
53.29 	previously filed an excess-income certification under subdivision 3 may resume program 
53.30 	participation if the taxpayer's household income for a subsequent year is $40,000 or less. 
53.31 	If the taxpayer chooses to resume program participation, the taxpayer must notify the 
53.32 	commissioner of revenue in writing by June 1 of the year following a calendar year in 
53.33 	which the taxpayer's household income is $40,000 or less. The certification must state 
53.34 	the taxpayer's total household income for the previous calendar year. Once a taxpayer 
53.35 	resumes participation in the program under this subdivision, participation will continue 
53.36 	until the taxpayer files a subsequent excess-income certification under subdivision 3 
54.1 	or until participation is terminated under section 290D.06. On or before September 1, 
54.2 	the commissioner shall notify the county auditor that the homestead qualifies for the 
54.3 	maximum tax amount certified under section 290D.05, subdivision 1.
54.4 		Subd. 5.Penalty for failure to file excess-income certification; investigations. (a) 
54.5 	The commissioner shall assess a penalty equal to 20 percent of the reduction in taxes in the 
54.6 	case of a false application, a false certification, or in the case of a required excess-income 
54.7 	certification that was not filed as of the applicable due date. The commissioner shall assess 
54.8 	a penalty equal to 50 percent of the reduction in taxes if the taxpayer knowingly filed a 
54.9 	false application or certification, or knowingly failed to file a required excess-income 
54.10 	certification by the applicable due date. The commissioner shall assess penalties under this 
54.11 	section through the issuance of an order under the provisions of chapter 270C. Persons 
54.12 	affected by a commissioner's order issued under this section may appeal as provided in 
54.13 	chapter 270C.
54.14 	(b) The commissioner may conduct investigations related to initial applications and 
54.15 	excess-income certifications required under this chapter within the period ending 3-1/2 
54.16 	years from the due date of the application or certification.

54.17 	Sec. 5. [290D.05] CERTIFICATION BY COMMISSIONER; CALCULATION 
54.18 	OF TAX, TAX RATE, AND LEVY BY COUNTY AUDITOR.
54.19 		Subdivision 1.Commissioner certification. On or before September 1 of the year 
54.20 	of initial application, the commissioner of revenue shall certify to the county auditor of the 
54.21 	county in which the property is located (1) that the property qualifies for the maximum 
54.22 	tax amount, (2) the base year, and (3) the property taxes payable on the property in the 
54.23 	base year.
54.24 		Subd. 2.County auditor calculations. Each year, the county auditor shall 
54.25 	determine the maximum homestead property tax amount for the property under section 
54.26 	290D.01. This is the amount that must be used for the notice of proposed property taxes 
54.27 	under section 275.065, subdivision 3.
54.28 		Subd. 3.Adjustment of tax rate and levy. (a) If requested by the taxing 
54.29 	jurisdiction, the county auditor may estimate the total loss of revenue to the taxing 
54.30 	jurisdiction for taxes levied in the current year under this chapter and adjust the tax rate 
54.31 	accordingly. If the adjustment to the tax rate is made under this subdivision, in the 
54.32 	following levy year the county auditor must adjust the levy of the taxing district to 
54.33 	compensate for the amount of variance between the estimated and actual loss of revenues.
55.1 	(b) If an adjustment is not made under paragraph (a), a taxing jurisdiction may 
55.2 	increase its levy in the following year by the amount of any revenue loss under provisions 
55.3 	of this chapter as certified by the county auditor.
55.4 	(c) A levy adjustment under paragraph (a) or (b) is not subject to any levy limitations.

55.5 	Sec. 6. [290D.06] TERMINATION OF PROGRAM PARTICIPATION.
55.6 	Participation in the maximum homestead property tax program under this chapter 
55.7 	terminates when one of the following occurs:
55.8 	(1) the property is sold or transferred;
55.9 	(2) all qualifying homeowners have died;
55.10 	(3) the homeowner notifies the commissioner in writing that the homeowner cancels 
55.11 	participation in the program; or
55.12 	(4) the property no longer qualifies as a homestead.

55.13 	Sec. 7. EFFECTIVE DATE.
 55.14 	Sections 1 to 6 are effective for taxes payable in 2008 and thereafter.

55.15 	ARTICLE 4
55.16 	INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES

55.17 	Section 1. Minnesota Statutes 2006, section 290.01, subdivision 6b, is amended to read:
55.18 		Subd. 6b.Foreign operating corporation. The term "foreign operating 
55.19 	corporation," when applied to a corporation, means a domestic corporation with the 
55.20 	following characteristics:
55.21 	(1) it is part of a unitary business at least one member of which is taxable in this state;
55.22 	(2) it is not a foreign sales corporation under section 922 of the Internal Revenue 
55.23 	Code, as amended through December 31, 1999, for the taxable year;
55.24 	(3) it is not an interest charge domestic international sales corporation under sections 
55.25 	992, 993, 994, and 995 of the Internal Revenue Code;
55.26 	 (4) either (i) the average of the percentages of its property and payrolls, including 
55.27 	the pro rata share of its unitary partnerships' property and payrolls, assigned to locations 
55.28 	outside the United States, where the United States includes the District of Columbia and 
55.29 	excludes the commonwealth of Puerto Rico and possessions of the United States, as 
55.30 	determined under section 290.191 or 290.20, is 80 percent or more; or (ii) it has in effect a 
55.31 	valid election under section 936 of the Internal Revenue Code; or (ii) at least 80 percent 
55.32 	of the gross income from all sources of the corporation in the tax year is active foreign 
55.33 	business income; and
56.1 	(4) it has $1,000,000 of payroll and $2,000,000 of property, as determined under 
56.2 	section 290.191 or 290.20, that are located outside the United States. If the domestic 
56.3 	corporation does not have payroll as determined under section 290.191 or 290.20, but it 
56.4 	or its partnerships have paid $1,000,000 for work, performed directly for the domestic 
56.5 	corporation or the partnerships, outside the United States, then paragraph (3)(i) shall not 
56.6 	require payrolls to be included in the average calculation
56.7 	(5) for purposes of this subdivision, active foreign business income means gross 
56.8 	income that is (i) derived from sources without the United States, as defined in subtitle A, 
56.9 	chapter 1, subchapter N, part 1, of the Internal Revenue Code; and (ii) attributable to the 
56.10 	active conduct of a trade or business in a foreign country.

56.11 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
56.12 	December 31, 2007.

56.13 	Sec. 2. Minnesota Statutes 2007 Supplement, section 290.01, subdivision 19b, as 
56.14 	amended by Laws 2008, chapter 154, article 3, section 3, is amended to read:
56.15 		Subd. 19b. Subtractions from federal taxable income. For individuals, estates, 
56.16 	and trusts, there shall be subtracted from federal taxable income: 
56.17 	(1) net interest income on obligations of any authority, commission, or 
56.18 	instrumentality of the United States to the extent includable in taxable income for federal 
56.19 	income tax purposes but exempt from state income tax under the laws of the United States; 
56.20 	(2) if included in federal taxable income, the amount of any overpayment of income 
56.21 	tax to Minnesota or to any other state, for any previous taxable year, whether the amount 
56.22 	is received as a refund or as a credit to another taxable year's income tax liability; 
56.23 	(3) the amount paid to others, less the amount used to claim the credit allowed under 
56.24 	section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten 
56.25 	to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and 
56.26 	transportation of each qualifying child in attending an elementary or secondary school 
56.27 	situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a 
56.28 	resident of this state may legally fulfill the state's compulsory attendance laws, which 
56.29 	is not operated for profit, and which adheres to the provisions of the Civil Rights Act 
56.30 	of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or 
56.31 	tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, 
56.32 	"textbooks" includes books and other instructional materials and equipment purchased 
56.33 	or leased for use in elementary and secondary schools in teaching only those subjects 
56.34 	legally and commonly taught in public elementary and secondary schools in this state. 
56.35 	Equipment expenses qualifying for deduction includes expenses as defined and limited in 
57.1 	section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional 
57.2 	books and materials used in the teaching of religious tenets, doctrines, or worship, the 
57.3 	purpose of which is to instill such tenets, doctrines, or worship, nor does it include books 
57.4 	or materials for, or transportation to, extracurricular activities including sporting events, 
57.5 	musical or dramatic events, speech activities, driver's education, or similar programs. For 
57.6 	purposes of the subtraction provided by this clause, "qualifying child" has the meaning 
57.7 	given in section 32(c)(3) of the Internal Revenue Code; 
57.8 	(4) income as provided under section 290.0802; 
57.9 	(5) to the extent included in federal adjusted gross income, income realized on 
57.10 	disposition of property exempt from tax under section 290.491; 
57.11 	(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) 
57.12 	of the Internal Revenue Code in determining federal taxable income by an individual 
57.13 	who does not itemize deductions for federal income tax purposes for the taxable year, an 
57.14 	amount equal to 50 percent of the excess of charitable contributions over $500 allowable 
57.15 	as a deduction for the taxable year under section 170(a) of the Internal Revenue Code and 
57.16 	under the provisions of Public Law 109-1; 
57.17 	(7) for taxable years beginning before January 1, 2008, the amount of the federal 
57.18 	small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code 
57.19 	which is included in gross income under section 87 of the Internal Revenue Code; 
57.20 	(8) for individuals who are allowed a federal foreign tax credit for taxes that do not 
57.21 	qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover 
57.22 	of subnational foreign taxes for the taxable year, but not to exceed the total subnational 
57.23 	foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, 
57.24 	"federal foreign tax credit" means the credit allowed under section 27 of the Internal 
57.25 	Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed 
57.26 	under section 904(c) of the Internal Revenue Code minus national level foreign taxes to 
57.27 	the extent they exceed the federal foreign tax credit; 
57.28 	(9) in each of the five tax years immediately following the tax year in which an 
57.29 	addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case 
57.30 	of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth 
57.31 	of the delayed depreciation. For purposes of this clause, "delayed depreciation" means 
57.32 	the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or 
57.33 	subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the 
57.34 	positive value of any net operating loss under section 172 of the Internal Revenue Code 
57.35 	generated for the tax year of the addition. The resulting delayed depreciation cannot be 
57.36 	less than zero; 
58.1 	(10) job opportunity building zone income as provided under section 469.316; 
58.2 	(11) to the extent included in federal taxable income, the amount of compensation 
58.3 	paid to members of the Minnesota National Guard or other reserve components of the 
58.4 	United States military for active service performed in Minnesota, excluding compensation 
58.5 	for services performed under the Active Guard Reserve (AGR) program. For purposes of 
58.6 	this clause, "active service" means (i) state active service as defined in section 190.05, 
58.7 	subdivision 5a, clause (1); (ii) federally funded state active service as defined in section 
58.8 	190.05, subdivision 5b; or (iii) federal active service as defined in section 190.05, 
58.9 	subdivision 5c, but "active service" excludes services performed exclusively for purposes 
58.10 	of basic combat training, advanced individual training, annual training, and periodic 
58.11 	inactive duty training; special training periodically made available to reserve members; 
58.12 	and service performed in accordance with section 190.08, subdivision 3; 
58.13 	(12) to the extent included in federal taxable income, the amount of compensation 
58.14 	paid to Minnesota residents who are members of the armed forces of the United States or 
58.15 	United Nations for active duty performed outside Minnesota under United States Code, 
58.16 	title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of 
58.17 	the United Nations; 
58.18 	(13) an amount, not to exceed $10,000, equal to qualified expenses related to a 
58.19 	qualified donor's donation, while living, of one or more of the qualified donor's organs 
58.20 	to another person for human organ transplantation. For purposes of this clause, "organ" 
58.21 	means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; 
58.22 	"human organ transplantation" means the medical procedure by which transfer of a human 
58.23 	organ is made from the body of one person to the body of another person; "qualified 
58.24 	expenses" means unreimbursed expenses for both the individual and the qualified donor 
58.25 	for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses 
58.26 	may be subtracted under this clause only once; and "qualified donor" means the individual 
58.27 	or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An 
58.28 	individual may claim the subtraction in this clause for each instance of organ donation for 
58.29 	transplantation during the taxable year in which the qualified expenses occur; 
58.30 	(14) in each of the five tax years immediately following the tax year in which an 
58.31 	addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a 
58.32 	shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 
58.33 	addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the 
58.34 	case of a shareholder of a corporation that is an S corporation, minus the positive value of 
58.35 	any net operating loss under section 172 of the Internal Revenue Code generated for the 
59.1 	tax year of the addition. If the net operating loss exceeds the addition for the tax year, a 
59.2 	subtraction is not allowed under this clause; 
59.3 	(15) to the extent included in federal taxable income, compensation paid to a 
59.4 	nonresident who is a service member as defined in United States Code, title 10, section 
59.5 	101(a)(5), for military service as defined in the Service Member Civil Relief Act, Public 
59.6 	Law 108-189, section 101(2); and
59.7 	(16) international economic development zone income as provided under section 
59.8 	469.325; and
59.9 	(17) to the extent included in federal taxable income, the amount of national service 
59.10 	educational awards received from the National Service Trust under United States Code, 
59.11 	title 42, sections 12601 to 12604, for service in an approved Americorps National Service 
59.12 	program. 

59.13 	EFFECTIVE DATE. This section is effective for tax years beginning after 
59.14 	December 31, 2007.

59.15 	Sec. 3. Minnesota Statutes 2006, section 290.01, subdivision 19c, as amended by Laws 
59.16 	2008, chapter 154, article 3, section 4, is amended to read:
59.17 		Subd. 19c. Corporations; additions to federal taxable income. For corporations, 
59.18 	there shall be added to federal taxable income: 
59.19 	(1) the amount of any deduction taken for federal income tax purposes for income, 
59.20 	excise, or franchise taxes based on net income or related minimum taxes, including but not 
59.21 	limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota, 
59.22 	another state, a political subdivision of another state, the District of Columbia, or any 
59.23 	foreign country or possession of the United States; 
59.24 	(2) interest not subject to federal tax upon obligations of: the United States, its 
59.25 	possessions, its agencies, or its instrumentalities; the state of Minnesota or any other 
59.26 	state, any of its political or governmental subdivisions, any of its municipalities, or any 
59.27 	of its governmental agencies or instrumentalities; the District of Columbia; or Indian 
59.28 	tribal governments; 
59.29 	(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal 
59.30 	Revenue Code; 
59.31 	(4) the amount of any net operating loss deduction taken for federal income tax 
59.32 	purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss 
59.33 	deduction under section 810 of the Internal Revenue Code; 
59.34 	(5) the amount of any special deductions taken for federal income tax purposes 
59.35 	under sections 241 to 247 and 965 of the Internal Revenue Code; 
60.1 	(6) losses from the business of mining, as defined in section 290.05, subdivision 1, 
60.2 	clause (a), that are not subject to Minnesota income tax; 
60.3 	(7) the amount of any capital losses deducted for federal income tax purposes under 
60.4 	sections 1211 and 1212 of the Internal Revenue Code; 
60.5 	(8) the exempt foreign trade income of a foreign sales corporation under sections 
60.6 	921(a) and 291 of the Internal Revenue Code; 
60.7 	(9) the amount of percentage depletion deducted under sections 611 through 614 and 
60.8 	291 of the Internal Revenue Code; 
60.9 	(10) for certified pollution control facilities placed in service in a taxable year 
60.10 	beginning before December 31, 1986, and for which amortization deductions were elected 
60.11 	under section 169 of the Internal Revenue Code of 1954, as amended through December 
60.12 	31, 1985, the amount of the amortization deduction allowed in computing federal taxable 
60.13 	income for those facilities; 
60.14 	(11) the amount of any deemed dividend from a foreign operating corporation 
60.15 	determined pursuant to section 290.17, subdivision 4, paragraph (g). The deemed dividend 
60.16 	shall be reduced by the amount of the addition to income required by clauses (19), (20), 
60.17 	(21), and (22); 
60.18 	(12)(11)  the amount of a partner's pro rata share of net income which does not flow 
60.19 	through to the partner because the partnership elected to pay the tax on the income under 
60.20 	section 6242(a)(2) of the Internal Revenue Code; 
60.21 	(13)(12)  the amount of net income excluded under section 114 of the Internal 
60.22 	Revenue Code; 
60.23 	(14)(13)  any increase in subpart F income, as defined in section 952(a) of the 
60.24 	Internal Revenue Code, for the taxable year when subpart F income is calculated without 
60.25 	regard to the provisions of section 103 of Public Law 109-222; 
60.26 	(15)(14)  80 percent of the depreciation deduction allowed under section 
60.27 	168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if 
60.28 	the taxpayer has an activity that in the taxable year generates a deduction for depreciation 
60.29 	under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable 
60.30 	year that the taxpayer is not allowed to claim for the taxable year, "the depreciation 
60.31 	allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess 
60.32 	of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) 
60.33 	over the amount of the loss from the activity that is not allowed in the taxable year. In 
60.34 	succeeding taxable years when the losses not allowed in the taxable year are allowed, the 
60.35 	depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed; 
61.1 	(16)(15)  80 percent of the amount by which the deduction allowed by section 179 of 
61.2 	the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal 
61.3 	Revenue Code of 1986, as amended through December 31, 2003; 
61.4 	(17)(16)  to the extent deducted in computing federal taxable income, the amount of 
61.5 	the deduction allowable under section 199 of the Internal Revenue Code; 
61.6 	(18)(17)  the exclusion allowed under section 139A of the Internal Revenue Code 
61.7 	for federal subsidies for prescription drug plans; and
61.8 	(19)(18)  the amount of expenses disallowed under section 290.10, subdivision 2;
61.9 	(19) an amount equal to the interest and intangible expenses, losses, and costs paid, 
61.10 	accrued, or incurred by any member of the taxpayer's unitary group to or for the benefit 
61.11 	of a corporation that is a member of the taxpayer's unitary business group that qualifies 
61.12 	as a foreign operating corporation. For purposes of this clause, intangible expenses and 
61.13 	costs include:
61.14 	(i) expenses, losses, and costs for, or related to, the direct or indirect acquisition, 
61.15 	use, maintenance or management, ownership, sale, exchange, or any other disposition of 
61.16 	intangible property;
61.17 	(ii) losses incurred, directly or indirectly, from factoring transactions or discounting 
61.18 	transactions;
61.19 	(iii) royalty, patent, technical, and copyright fees;
61.20 	(iv) licensing fees; and
61.21 	(v) other similar expenses and costs. 
61.22 	For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent 
61.23 	applications, trade names, trademarks, service marks, copyrights, mask works, trade 
61.24 	secrets, and similar types of intangible assets.
61.25 	This clause does not apply to any item of interest or intangible expenses or costs paid, 
61.26 	accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect 
61.27 	to such item of income to the extent that the income to the foreign operating corporation 
61.28 	is income from sources without the United States as defined in subtitle A, chapter 1, 
61.29 	subchapter N, part 1, of the Internal Revenue Code;
61.30 	(20) except as already included in the taxpayer's taxable income pursuant to clause 
61.31 	(19), any interest income and income generated from intangible property received or 
61.32 	accrued by a foreign operating corporation that is a member of the taxpayer's unitary 
61.33 	group. For purposes of this clause, income generated from intangible property includes:
61.34 	(i) income related to the direct or indirect acquisition, use, maintenance or 
61.35 	management, ownership, sale, exchange, or any other disposition of intangible property;
61.36 	(ii) income from factoring transactions or discounting transactions;
62.1 	(iii) royalty, patent, technical, and copyright fees;
62.2 	(iv) licensing fees; and
62.3 	(v) other similar income.
62.4 	For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent 
62.5 	applications, trade names, trademarks, service marks, copyrights, mask works, trade 
62.6 	secrets, and similar types of intangible assets. 
62.7 	This clause does not apply to any item of interest or intangible income received or accrued 
62.8 	by a foreign operating corporation with respect to such item of income to the extent that 
62.9 	the income is income from sources without the United States as defined in subtitle A, 
62.10 	chapter 1, subchapter N, part 1, of the Internal Revenue Code;
62.11 	(21) the dividends attributable to the income of a foreign operating corporation that 
62.12 	is a member of the taxpayer's unitary group in an amount that is equal to the dividends 
62.13 	paid deduction of a real estate investment trust under section 561(a) of the Internal 
62.14 	Revenue Code for amounts paid or accrued by the real estate investment trust to the 
62.15 	foreign operating corporation; and
62.16 	(22) the income of a foreign operating corporation that is a member of the taxpayer's 
62.17 	unitary group in an amount that is equal to gains derived from the sale of real or personal 
62.18 	property located in the United States.

62.19 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
62.20 	December 31, 2007.

62.21 	Sec. 4. Minnesota Statutes 2006, section 290.01, subdivision 19d, as amended by Laws 
62.22 	2008, chapter 154, article 11, section 12, is amended to read:
62.23 		Subd. 19d. Corporations; modifications decreasing federal taxable income. For 
62.24 	corporations, there shall be subtracted from federal taxable income after the increases 
62.25 	provided in subdivision 19c: 
62.26 	(1) the amount of foreign dividend gross-up added to gross income for federal 
62.27 	income tax purposes under section 78 of the Internal Revenue Code; 
62.28 	(2) the amount of salary expense not allowed for federal income tax purposes due to 
62.29 	claiming the work opportunity credit under section 51 of the Internal Revenue Code; 
62.30 	(3) any dividend (not including any distribution in liquidation) paid within the 
62.31 	taxable year by a national or state bank to the United States, or to any instrumentality of 
62.32 	the United States exempt from federal income taxes, on the preferred stock of the bank 
62.33 	owned by the United States or the instrumentality; 
63.1 	(4) amounts disallowed for intangible drilling costs due to differences between 
63.2 	this chapter and the Internal Revenue Code in taxable years beginning before January 
63.3 	1, 1987, as follows: 
63.4 	(i) to the extent the disallowed costs are represented by physical property, an amount 
63.5 	equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09, 
63.6 	subdivision 7, subject to the modifications contained in subdivision 19e; and 
63.7 	(ii) to the extent the disallowed costs are not represented by physical property, an 
63.8 	amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section 
63.9 	290.09, subdivision 8; 
63.10 	(5) the deduction for capital losses pursuant to sections 1211 and 1212 of the 
63.11 	Internal Revenue Code, except that: 
63.12 	(i) for capital losses incurred in taxable years beginning after December 31, 1986, 
63.13 	capital loss carrybacks shall not be allowed; 
63.14 	(ii) for capital losses incurred in taxable years beginning after December 31, 1986, 
63.15 	a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be 
63.16 	allowed; 
63.17 	(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a 
63.18 	capital loss carryback to each of the three taxable years preceding the loss year, subject to 
63.19 	the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and 
63.20 	(iv) for capital losses incurred in taxable years beginning before January 1, 1987, 
63.21 	a capital loss carryover to each of the five taxable years succeeding the loss year to the 
63.22 	extent such loss was not used in a prior taxable year and subject to the provisions of 
63.23 	Minnesota Statutes 1986, section 290.16, shall be allowed; 
63.24 	(6) an amount for interest and expenses relating to income not taxable for federal 
63.25 	income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and 
63.26 	expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or 
63.27 	291 of the Internal Revenue Code in computing federal taxable income; 
63.28 	(7) in the case of mines, oil and gas wells, other natural deposits, and timber for 
63.29 	which percentage depletion was disallowed pursuant to subdivision 19c, clause (9), a 
63.30 	reasonable allowance for depletion based on actual cost. In the case of leases the deduction 
63.31 	must be apportioned between the lessor and lessee in accordance with rules prescribed 
63.32 	by the commissioner. In the case of property held in trust, the allowable deduction must 
63.33 	be apportioned between the income beneficiaries and the trustee in accordance with the 
63.34 	pertinent provisions of the trust, or if there is no provision in the instrument, on the basis 
63.35 	of the trust's income allocable to each; 
64.1 	(8) for certified pollution control facilities placed in service in a taxable year 
64.2 	beginning before December 31, 1986, and for which amortization deductions were elected 
64.3 	under section 169 of the Internal Revenue Code of 1954, as amended through December 
64.4 	31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes 
64.5 	1986, section 290.09, subdivision 7;
64.6 	(9) amounts included in federal taxable income that are due to refunds of income, 
64.7 	excise, or franchise taxes based on net income or related minimum taxes paid by the 
64.8 	corporation to Minnesota, another state, a political subdivision of another state, the 
64.9 	District of Columbia, or a foreign country or possession of the United States to the extent 
64.10 	that the taxes were added to federal taxable income under section 290.01, subdivision 19c, 
64.11 	clause (1), in a prior taxable year; 
64.12 	(10) (9) 80 percent of royalties, fees, or other like income accrued or received from a 
64.13 	foreign operating corporation or a foreign corporation which is part of the same unitary 
64.14 	business as the receiving corporation, unless the income resulting from such payments or 
64.15 	accruals is income from sources within the United States as defined in subtitle A, chapter 
64.16 	1, subchapter N, part 1, of the Internal Revenue Code; 
64.17 	(11) (10) income or gains from the business of mining as defined in section 290.05, 
64.18 	subdivision 1, clause (a), that are not subject to Minnesota franchise tax; 
64.19 	(12) (11) the amount of disability access expenditures in the taxable year which are 
64.20 	not allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue 
64.21 	Code; 
64.22 	(13) (12) the amount of qualified research expenses not allowed for federal income 
64.23 	tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent 
64.24 	that the amount exceeds the amount of the credit allowed under section 290.068; 
64.25 	(14) (13) the amount of salary expenses not allowed for federal income tax purposes 
64.26 	due to claiming the Indian employment credit under section 45A(a) of the Internal 
64.27 	Revenue Code; 
64.28 	(15) (14) for taxable years beginning before January 1, 2008, the amount of the 
64.29 	federal small ethanol producer credit allowed under section 40(a)(3) of the Internal 
64.30 	Revenue Code which is included in gross income under section 87 of the Internal Revenue 
64.31 	Code; 
64.32 	(16) (15) for a corporation whose foreign sales corporation, as defined in section 
64.33 	922 of the Internal Revenue Code, constituted a foreign operating corporation during any 
64.34 	taxable year ending before January 1, 1995, and a return was filed by August 15, 1996, 
64.35 	claiming the deduction under section 290.21, subdivision 4, for income received from 
64.36 	the foreign operating corporation, an amount equal to 1.23 multiplied by the amount of 
65.1 	income excluded under section 114 of the Internal Revenue Code, provided the income is 
65.2 	not income of a foreign operating company; 
65.3 	(17) (16) any decrease in subpart F income, as defined in section 952(a) of the 
65.4 	Internal Revenue Code, for the taxable year when subpart F income is calculated without 
65.5 	regard to the provisions of section 103 of Public Law 109-222; 
65.6 	(16) (17) in each of the five tax years immediately following the tax year in which 
65.7 	an addition is required under subdivision 19c, clause (15), an amount equal to one-fifth 
65.8 	of the delayed depreciation. For purposes of this clause, "delayed depreciation" means 
65.9 	the amount of the addition made by the taxpayer under subdivision 19c, clause (15). The 
65.10 	resulting delayed depreciation cannot be less than zero; and 
65.11 	(17) (18) in each of the five tax years immediately following the tax year in which an 
65.12 	addition is required under subdivision 19c, clause (16), an amount equal to one-fifth of the 
65.13 	amount of the addition. 

65.14 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
65.15 	December 31, 2007.

65.16 	Sec. 5. Minnesota Statutes 2006, section 290.34, is amended by adding a subdivision 
65.17 	to read:
65.18 		Subd. 3a.Transactions without economic substance. (a) When any person, 
65.19 	directly or indirectly, engages in a transaction or series of transactions without economic 
65.20 	substance to create a loss or to reduce taxable income or to increase credits allowed in 
65.21 	determining Minnesota tax, the commissioner must determine the amount of a taxpayer's 
65.22 	taxable income or tax so as to reflect what would have been the taxpayer's taxable income 
65.23 	or tax but for the transaction or transactions without economic substance causing the 
65.24 	reduction in taxable income or tax.
65.25 	(b) A transaction has economic substance only if a taxpayer shows by clear and 
65.26 	convincing evidence:
65.27 	(1) the transaction changes in a meaningful way (apart from federal, state, local, and 
65.28 	foreign tax effects) the taxpayer's economic position; and
65.29 	(2) the taxpayer has a substantial nontax purpose for entering into a transaction and 
65.30 	the transaction is a reasonable means of accomplishing the substantial nontax purpose.
65.31 	A transaction does not have a substantial nontax purpose if it does not have a potential 
65.32 	for profit. A transaction has a substantial nontax purpose when the taxpayer reasonably 
65.33 	expects that the pretax profit for the transaction is substantial in relation to the present 
65.34 	value of the expected net tax benefits that would be allowed if the transaction were 
66.1 	respected for tax purposes, and the reasonably expected pretax profit from the transaction 
66.2 	exceeds the risk-free rate of return.

66.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
66.4 	December 31, 2007.

66.5 	Sec. 6. Minnesota Statutes 2006, section 290.92, subdivision 1, is amended to read:
66.6 		Subdivision 1.Definitions. (1) Wages. For purposes of this section, the term 
66.7 	"wages" means the same as that term is defined in section 3401(a) and (f) of the Internal 
66.8 	Revenue Code, except that provisions of section 530 of Public Law 95-600, as amended, 
66.9 	do not apply.
66.10 	(2) Payroll period. For purposes of this section the term "payroll period" means a 
66.11 	period for which a payment of wages is ordinarily made to the employee by the employee's 
66.12 	employer, and the term "miscellaneous payroll period" means a payroll period other 
66.13 	than a daily, weekly, biweekly, semimonthly, monthly, quarterly, semiannual, or annual 
66.14 	payroll period.
66.15 	(3) Employee. For purposes of this section the term "employee" means any resident 
66.16 	individual performing services for an employer, either within or without, or both within 
66.17 	and without the state of Minnesota, and every nonresident individual performing services 
66.18 	within the state of Minnesota, the performance of which services constitute, establish, and 
66.19 	determine the relationship between the parties as that of employer and employee. As 
66.20 	used in the preceding sentence, the term "employee" includes an officer of a corporation, 
66.21 	and an officer, employee, or elected official of the United States, a state, or any political 
66.22 	subdivision thereof, or the District of Columbia, or any agency or instrumentality of 
66.23 	any one or more of the foregoing.
66.24 	(4) Employer. For purposes of this section the term "employer" means any person, 
66.25 	including individuals, fiduciaries, estates, trusts, partnerships, limited liability companies, 
66.26 	and corporations transacting business in or deriving any income from sources within 
66.27 	the state of Minnesota for whom an individual performs or performed any service, of 
66.28 	whatever nature, as the employee of such person, except that if the person for whom the 
66.29 	individual performs or performed the services does not have control of the payment of 
66.30 	the wages for such services, the term "employer," except for purposes of paragraph (1), 
66.31 	means the person having control of the payment of such wages. As used in the preceding 
66.32 	sentence, the term "employer" includes any corporation, individual, estate, trust, or 
66.33 	organization which is exempt from taxation under section 290.05 and further includes, but 
66.34 	is not limited to, officers of corporations who have control, either individually or jointly 
66.35 	with another or others, of the payment of the wages.
67.1 	(5) Number of withholding exemptions claimed. For purposes of this section, the 
67.2 	term "number of withholding exemptions claimed" means the number of withholding 
67.3 	exemptions claimed in a withholding exemption certificate in effect under subdivision 
67.4 	5, except that if no such certificate is in effect, the number of withholding exemptions 
67.5 	claimed shall be considered to be zero.

67.6 	EFFECTIVE DATE. This section is effective for wages paid after December 31, 
67.7 	2008.

67.8 	Sec. 7. PURPOSE AND EFFECT.
 67.9 	It is the intent of the legislature that the provisions of sections 1, 3, 4, and 5, must 
67.10 	not be construed as supplanting any existing Minnesota law.

67.11 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
67.12 	December 31, 2007.

67.13 	Sec. 8. TRANSITION; POLLUTION CONTROL FACILITIES 
67.14 	AMORTIZATION.
 67.15 	The amount of additions to federal taxable income pursuant to Minnesota Statutes, 
67.16 	section 290.01, subdivision 19c, clause (10), that are properly subtractable pursuant 
67.17 	to Minnesota Statutes, section 290.01, subdivision 19d, clause (8), for taxable years 
67.18 	beginning after December 31, 2007, and have not been subtracted pursuant to Minnesota 
67.19 	Statutes, section 290.01, subdivision 19d, clause (8), are subtractable in the taxpayer's first 
67.20 	taxable year beginning after December 31, 2007.

67.21 	ARTICLE 5
67.22 	SALES AND USE TAX

67.23 	Section 1. Minnesota Statutes 2007 Supplement, section 297A.70, subdivision 3, 
67.24 	is amended to read:
67.25 		Subd. 3.Sales of certain goods and services to government. (a) The following 
67.26 	sales to or use by the specified governments and political subdivisions of the state are 
67.27 	exempt:
67.28 	(1) repair and replacement parts for emergency rescue vehicles, fire trucks, and 
67.29 	fire apparatus to a political subdivision;
67.30 	(2) machinery and equipment, except for motor vehicles, used directly for mixed 
67.31 	municipal solid waste management services at a solid waste disposal facility as defined in 
67.32 	section 115A.03, subdivision 10; 
68.1 	(3) chore and homemaking services to a political subdivision of the state to be 
68.2 	provided to elderly or disabled individuals;
68.3 	(4) telephone services to the  Office of Enterprise Technology that are used to provide 
68.4 	telecommunications services through the enterprise technology revolving fund;
68.5 	(5) firefighter personal protective equipment as defined in paragraph (b), if purchased 
68.6 	or authorized by and for the use of an organized fire department, fire protection district, or 
68.7 	fire company regularly charged with the responsibility of providing fire protection to the 
68.8 	state or a political subdivision;
68.9 	(6) bullet-resistant body armor that provides the wearer with ballistic and trauma 
68.10 	protection, if purchased by a law enforcement agency of the state or a political subdivision 
68.11 	of the state, or a licensed peace officer, as defined in section 626.84, subdivision 1; 
68.12 	(7) motor vehicles purchased or leased by political subdivisions of the state if the 
68.13 	vehicles are exempt from registration under section 168.012, subdivision 1, paragraph (b), 
68.14 	exempt from taxation under section 473.448, or exempt from the motor vehicle sales tax 
68.15 	under section 297B.03, clause (12); 
68.16 	(8) equipment designed to process, dewater, and recycle biosolids for wastewater 
68.17 	treatment facilities of political subdivisions, and materials incidental to installation of 
68.18 	that equipment; 
68.19 	(9) sales to a town of gravel and of machinery, equipment, and accessories, except 
68.20 	motor vehicles, used exclusively for road and bridge maintenance, and leases by a town of 
68.21 	motor vehicles exempt from tax under section 297B.03, clause (10); and
68.22 	(10) the removal of trees, bushes, or shrubs for the construction and maintenance 
68.23 	of roads, trails, or firebreaks when purchased by an agency of the state or a political 
68.24 	subdivision of the state;
68.25 	(11) purchases by the Metropolitan Council or the Department of Transportation of 
68.26 	vehicles and repair parts to equip operations provided for in section 174.90, including, 
68.27 	but not limited to, the Northstar Corridor Rail project; and
68.28 	(12) propane-fueled motor vehicles leased by school districts, as defined under 
68.29 	subdivision 2, paragraph (c), and used solely for the purpose of transporting pupils.
68.30 	(b) For purposes of this subdivision, "firefighters personal protective equipment" 
68.31 	means helmets, including face shields, chin straps, and neck liners; bunker coats and 
68.32 	pants, including pant suspenders; boots; gloves; head covers or hoods; wildfire jackets; 
68.33 	protective coveralls; goggles; self-contained breathing apparatus; canister filter masks; 
68.34 	personal alert safety systems; spanner belts; optical or thermal imaging search devices; 
68.35 	and all safety equipment required by the Occupational Safety and Health Administration.
69.1 	(c) For purchases of items listed in paragraph (a), clause (11), the tax must be 
69.2 	imposed and collected as if the rate under section 297A.62, subdivision 1, applied and 
69.3 	then refunded in the manner provided in section 297A.75.

69.4 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
69.5 	June 30, 2008, except that for purchases of items listed in paragraph (a), clause (11), it is 
69.6 	effective retroactively for sales and purchases made after December 31, 2006.

69.7 	Sec. 2. Minnesota Statutes 2006, section 297A.71, is amended by adding a subdivision 
69.8 	to read:
69.9 		Subd. 40.Construction materials; Central Corridor light rail transit. Materials 
69.10 	and supplies used or consumed in, and equipment incorporated into, the construction 
69.11 	or improvement of the Central Corridor light rail transit line and associated facilities 
69.12 	including, but not limited to, stations, park-and-ride facilities, and maintenance facilities, 
69.13 	are exempt. The tax must be imposed and collected as if the rate under section 297A.62, 
69.14 	subdivision 1, applied and then refunded in the manner provided in section 297A.75. 
69.15 	Refunds must not be applied for or issued until after July 1, 2009.

69.16 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
69.17 	June 30, 2008.

69.18 	Sec. 3. Minnesota Statutes 2006, section 297A.71, is amended by adding a subdivision 
69.19 	to read:
69.20 		Subd. 41.Construction materials; Northstar Corridor rail project. Materials 
69.21 	and supplies used or consumed in, and equipment incorporated into, the construction or 
69.22 	improvement of the Northstar Corridor rail project and associated facilities by a public 
69.23 	entity or under a contract with a public entity including, but not limited to, track and signal 
69.24 	improvements, stations, park-and-ride facilities, and maintenance facilities, are exempt. 
69.25 	The tax must be imposed and collected as if the rate under section 297A.62, subdivision 1, 
69.26 	applied and then refunded in the manner provided in section 297A.75. 

69.27 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
69.28 	made after January 1, 2007.

69.29 	Sec. 4. Minnesota Statutes 2006, section 297A.75, is amended to read:
69.30 	297A.75 REFUND; APPROPRIATION.
70.1 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the 
70.2 	following exempt items must be imposed and collected as if the sale were taxable and the 
70.3 	rate under section 297A.62, subdivision 1, applied. The exempt items include:
70.4 	(1) capital equipment exempt under section 297A.68, subdivision 5;
70.5 	(2) building materials for an agricultural processing facility exempt under section 
70.6 	297A.71, subdivision 13;
70.7 	(3) building materials for mineral production facilities exempt under section 
70.8 	297A.71, subdivision 14;
70.9 	(4) building materials for correctional facilities under section 297A.71, subdivision 
70.10 	3;
70.11 	(5) building materials used in a residence for disabled veterans exempt under section 
70.12 	297A.71, subdivision 11;
70.13 	(6) elevators and building materials exempt under section 297A.71, subdivision 12;
70.14 	(7) building materials for the Long Lake Conservation Center exempt under section 
70.15 	297A.71, subdivision 17;
70.16 	(8) materials, supplies, fixtures, furnishings, and equipment for a county law 
70.17 	enforcement and family service center under section 297A.71, subdivision 26;
70.18 	(9) materials and supplies for qualified low-income housing under section 297A.71, 
70.19 	subdivision 23; 
70.20 	(10) materials, supplies, and equipment for municipal electric utility facilities under 
70.21 	section 297A.71, subdivision 35;
70.22 	(11) equipment and materials used for the generation, transmission, and distribution 
70.23 	of electrical energy and an aerial camera package exempt under section 297A.68, 
70.24 	subdivision 37; and
70.25 	(12) tangible personal property and taxable services and construction materials, 
70.26 	supplies, and equipment exempt under section 297A.68, subdivision 41; 
70.27 	(13) commuter rail vehicle and repair parts under section 297A.70, subdivision 
70.28 	3, clause (11); and
70.29 	(14) materials, supplies, and equipment for construction or improvement of projects 
70.30 	and facilities under section 297A.71, subdivisions 40 and 41.
70.31 		Subd. 2.Refund; eligible persons. Upon application on forms prescribed by the 
70.32 	commissioner, a refund equal to the tax paid on the gross receipts of the exempt items 
70.33 	must be paid to the applicant. Only the following persons may apply for the refund:
70.34 	(1) for subdivision 1, clauses (1) to (3), the applicant must be the purchaser;
70.35 	(2) for subdivision 1, clauses (4), (7), and (8), the applicant must be the governmental 
70.36 	subdivision;
71.1 	(3) for subdivision 1, clause (5), the applicant must be the recipient of the benefits 
71.2 	provided in United States Code, title 38, chapter 21;
71.3 	(4) for subdivision 1, clause (6), the applicant must be the owner of the homestead 
71.4 	property;
71.5 	(5) for subdivision 1, clause (9), the owner of the qualified low-income housing 
71.6 	project; 
71.7 	(6) for subdivision 1, clause (10), the applicant must be a municipal electric utility or 
71.8 	a joint venture of municipal electric utilities; and
71.9 	(7) for subdivision 1, clauses (11) and (12), the owner of the qualifying business; and
71.10 	(8) for subdivision 1, clauses (13) and (14), the applicant must be the governmental 
71.11 	entity that owns or contracts for the project or facility.
71.12 		Subd. 3.Application. (a) The application must include sufficient information 
71.13 	to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, 
71.14 	subcontractor, or builder, under subdivision 1, clause (4), (5), (6), (7), (8), (9), (10), 
71.15 	(11), or (12), (13), or (14), the contractor, subcontractor, or builder must furnish to the 
71.16 	refund applicant a statement including the cost of the exempt items and the taxes paid on 
71.17 	the items unless otherwise specifically provided by this subdivision. The provisions of 
71.18 	sections 289A.40 and 289A.50 apply to refunds under this section.
71.19 	(b) An applicant may not file more than two applications per calendar year for 
71.20 	refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
71.21 	(c) Total refunds for purchases of items in sections 297A.70, subdivision 3, 
71.22 	paragraph (a), clause (11), and 297A.71, subdivision 41, must not exceed $3,100,000 in 
71.23 	fiscal year 2009. Applications for refunds for purchases of items in sections 297A.70, 
71.24 	subdivision 3, paragraph (a), clause (11), and 297A.71, subdivision 41, must not be filed 
71.25 	until after June 30, 2008.
71.26 		Subd. 4.Interest. Interest must be paid on the refund at the rate in section 270C.405
71.27 	from 90 days after the refund claim is filed with the commissioner for taxes paid under 
71.28 	subdivision 1.
71.29 		Subd. 5.Appropriation. The amount required to make the refunds is annually 
71.30 	appropriated to the commissioner.

71.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

71.32 	Sec. 5. Minnesota Statutes 2006, section 297B.03, is amended to read:
71.33 	297B.03 EXEMPTIONS.
72.1 	There is specifically exempted from the provisions of this chapter and from 
72.2 	computation of the amount of tax imposed by it the following:
72.3 	(1) purchase or use, including use under a lease purchase agreement or installment 
72.4 	sales contract made pursuant to section 465.71, of any motor vehicle by the United States 
72.5 	and its agencies and instrumentalities and by any person described in and subject to the 
72.6 	conditions provided in section 297A.67, subdivision 11; 
72.7 	(2) purchase or use of any motor vehicle by any person who was a resident of 
72.8 	another state or country at the time of the purchase and who subsequently becomes a 
72.9 	resident of Minnesota, provided the purchase occurred more than 60 days prior to the date 
72.10 	such person began residing in the state of Minnesota and the motor vehicle was registered 
72.11 	in the person's name in the other state or country;
72.12 	(3) purchase or use of any motor vehicle by any person making a valid election to be 
72.13 	taxed under the provisions of section 297A.90; 
72.14 	(4) purchase or use of any motor vehicle previously registered in the state of 
72.15 	Minnesota when such transfer constitutes a transfer within the meaning of section 118, 
72.16 	331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal 
72.17 	Revenue Code of 1986, as amended through December 31, 1999;
72.18 	(5) purchase or use of any vehicle owned by a resident of another state and leased 
72.19 	to a Minnesota-based private or for-hire carrier for regular use in the transportation of 
72.20 	persons or property in interstate commerce provided the vehicle is titled in the state of 
72.21 	the owner or secured party, and that state does not impose a sales tax or sales tax on 
72.22 	motor vehicles used in interstate commerce;
72.23 	(6) purchase or use of a motor vehicle by a private nonprofit or public educational 
72.24 	institution for use as an instructional aid in automotive training programs operated by the 
72.25 	institution. "Automotive training programs" includes motor vehicle body and mechanical 
72.26 	repair courses but does not include driver education programs;
72.27 	(7) purchase of a motor vehicle for use as an ambulance by an ambulance service 
72.28 	licensed under section 144E.10; 
72.29 	(8) purchase of a motor vehicle by or for a public library, as defined in section 
72.30 	134.001, subdivision 2, as a bookmobile or library delivery vehicle; 
72.31 	(9) purchase of a ready-mixed concrete truck;
72.32 	(10) purchase or use of a motor vehicle by a town for use exclusively for road 
72.33 	maintenance, including snowplows and dump trucks, but not including automobiles, 
72.34 	vans, or pickup trucks;
72.35 	(11) purchase or use of a motor vehicle by a corporation, society, association, 
72.36 	foundation, or institution organized and operated exclusively for charitable, religious, 
73.1 	or educational purposes, except a public school, university, or library, but only if the 
73.2 	vehicle is:
73.3 	(i) a truck, as defined in section 168.011, a bus, as defined in section 168.011, or a 
73.4 	passenger automobile, as defined in section 168.011, if the automobile is designed and 
73.5 	used for carrying more than nine persons including the driver; and 
73.6 	(ii) intended to be used primarily to transport tangible personal property or 
73.7 	individuals, other than employees, to whom the organization provides service in 
73.8 	performing its charitable, religious, or educational purpose;
73.9 	(12) purchase of a motor vehicle for use by a transit provider exclusively to provide 
73.10 	transit service is exempt if the transit provider is either (i) receiving financial assistance or 
73.11 	reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29, 
73.12 	473.388, or 473.405; 
73.13 	(13) purchase or use of a motor vehicle by a qualified business, as defined in section 
73.14 	469.310, located in a job opportunity building zone, if the motor vehicle is principally 
73.15 	garaged in the job opportunity building zone and is primarily used as part of or in direct 
73.16 	support of the person's operations carried on in the job opportunity building zone. The 
73.17 	exemption under this clause applies to sales, if the purchase was made and delivery 
73.18 	received during the duration of the job opportunity building zone. The exemption under 
73.19 	this clause also applies to any local sales and use tax; and
73.20 	(14) propane-fueled motor vehicles purchased by school districts and used solely for 
73.21 	the purpose of transporting pupils. 

73.22 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
73.23 	June 30, 2008.

73.24 	Sec. 6. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by 
73.25 	Laws 1998, chapter 389, article 8, section 28, is amended to read:
73.26 		Subd. 3. Use of revenues. Revenues received from taxes authorized by subdivisions 
73.27 	1 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or a 
73.28 	portion of the expenses of constructing and operatingimproving facilities as part of an 
73.29 	urban revitalization project in downtown Mankato known as Riverfront 2000. Authorized 
73.30 	expenses include, but are not limited to, acquiring property and paying relocation expenses 
73.31 	related to the development of Riverfront 2000 and related facilities, and securing or paying 
73.32 	debt service on bonds or other obligations issued to finance the construction of Riverfront 
73.33 	2000 and related facilities. For purposes of this section, "Riverfront 2000 and related 
73.34 	facilities" means a civic-convention center, an arena, a riverfront park, a technology center 
73.35 	and related educational facilities, and all publicly owned real or personal property that 
74.1 	the governing body of the city determines will be necessary to facilitate the use of these 
74.2 	facilities, including but not limited to parking, skyways, pedestrian bridges, lighting, and 
74.3 	landscaping. It also includes the performing arts theatre and the Southern Minnesota 
74.4 	Women's Hockey Exposition Center, attached to the Mankato Civic Center for use by 
74.5 	Minnesota State University, Mankato.

74.6 	EFFECTIVE DATE. This section is effective the day after the governing body of 
74.7 	the city of Mankato and its chief clerical officer comply with Minnesota Statutes, section 
74.8 	645.021, subdivisions 2 and 3.

74.9 	Sec. 7. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by 
74.10 	Laws 2005, First Special Session chapter 3, article 5, section 25, is amended to read:
74.11 		Subd. 4. Expiration of taxing authority and expenditure limitation. The 
74.12 	authority granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise 
74.13 	tax shall expire on December 31, 2015, unless sufficient revenues are not available to 
74.14 	defease any bonds or obligations issued to finance construction of Riverfront 2000 and 
74.15 	related facilities. If sufficient funds are not available to defease the bonds, the tax expires 
74.16 	December 31, 2018, but all revenues from taxes imposed after December 31, 2015, must 
74.17 	be used to defease the bonds 2025. The city may, by ordinance, terminate the tax at 
74.18 	an earlier date. 

74.19 	EFFECTIVE DATE. This section is effective the day after the governing body of 
74.20 	the city of Mankato and its chief clerical officer comply with Minnesota Statutes, section 
74.21 	645.021, subdivisions 2 and 3.

74.22 	Sec. 8. Laws 1998, chapter 389, article 8, section 45, subdivision 3, is amended to read:
74.23 		Subd. 3. Use of revenues. Revenues received from the taxes authorized under 
74.24 	subdivision 1 must be used for sanitary sewer separation, wastewater treatment, water 
74.25 	system improvements, and harbor refuge development projects. 

74.26 	EFFECTIVE DATE. This section is effective the day following final enactment, 
74.27 	upon compliance by the city of Two Harbors with Minnesota Statutes, section 645.021, 
74.28 	subdivision 3.

74.29 	Sec. 9. Laws 1999, chapter 243, article 4, section 18, subdivision 1, is amended to read:
74.30 		Subdivision 1.Sales and use tax. Notwithstanding Minnesota Statutes, section 
74.31 	297A.48, subdivision 1a,477A.016, or any other provision of law, ordinance, or city 
74.32 	charter, if approved by the city voters at the first municipal general election held after the 
75.1 	date of final enactment of this act or at a special election held November 2, 1999, the city 
75.2 	of Proctor may impose by ordinance a sales and use tax of up to one-half of one percent 
75.3 	for the purposes specified in subdivision 3. The provisions of Minnesota Statutes, section 
75.4 	297A.48 297A.99, govern the imposition, administration, collection, and enforcement of 
75.5 	the tax authorized under this subdivision.

75.6 	Sec. 10. Laws 1999, chapter 243, article 4, section 18, subdivision 3, is amended to 
75.7 	read:
75.8 		Subd. 3.Use of revenues. (a) Revenues received from taxes authorized by 
75.9 	subdivisions 1 and 2 must be used by the city to pay the cost of collecting the taxes and to 
75.10 	pay for construction and improvement of the following city facilities:
75.11 	(1) streets; and 
75.12 	(2) constructing and equipping the Proctor community activity center.
75.13 	Authorized expenses include, but are not limited to, acquiring property, paying 
75.14 	construction and operating expenses related to the development of an authorized facility, 
75.15 	and paying debt service on bonds or other obligations, including lease obligations, issued 
75.16 	to finance the construction, expansion, or improvement of an authorized facility. The 
75.17 	capital expenses for all projects authorized under this paragraph that may be paid with 
75.18 	these taxes is limited to $3,600,000, plus an amount equal to the costs related to issuance 
75.19 	of the bonds.
75.20 	(b) Additional revenues received from taxes authorized by subdivision 1, may be 
75.21 	used by the city to pay for the following capital improvement projects: public utilities, 
75.22 	including water, sanitary sewer, storm sewer, and electric; sidewalks; bikeways and trails; 
75.23 	and parks and recreation.

75.24 	EFFECTIVE DATE. This section is effective the day following final enactment, 
75.25 	upon compliance by the city of Proctor with Minnesota Statutes, section 645.021, 
75.26 	subdivision 3.

75.27 	Sec. 11. Laws 1999, chapter 243, article 4, section 18, subdivision 4, is amended to 
75.28 	read:
75.29 		Subd. 4.Bonding authority. (a) The city may issue bonds under Minnesota 
75.30 	Statutes, chapter 475, to finance the capital expenditure and improvement projects 
75.31 	described in subdivision 3. An election to approve the bonds under Minnesota Statutes, 
75.32 	section 475.58, is not required.
75.33 	(b) The issuance of bonds under this subdivision is not subject to Minnesota Statutes, 
75.34 	sections 275.60 and 279.61 275.61.
76.1 	(c) The bonds are not included in computing any debt limitation applicable to the 
76.2 	city, and the levy of taxes under Minnesota Statutes, section 475.61, to pay principal of 
76.3 	and interest on the bonds is not subject to any levy limitation.
76.4 	(d) For projects described in subdivision 3, paragraph (a), the aggregate principal 
76.5 	amount of bonds, plus the aggregate of the taxes used directly to pay eligible capital 
76.6 	expenditures and improvements, may not exceed $3,600,000, plus an amount equal to 
76.7 	the costs related to issuance of the bonds, including interest on the bonds. For projects 
76.8 	described in subdivision 3, paragraph (b), the aggregate principal amount of bonds may 
76.9 	not exceed $7,200,000, plus an amount equal to the costs related to issuance of the bonds, 
76.10 	including interest on the bonds.
76.11 	(e) The sales and use and excise taxes authorized in this section may be pledged to 
76.12 	and used for the payment of the bonds and any bonds issued to refund them only if the 
76.13 	bonds and any refunding bonds are general obligations of the city.

76.14 	EFFECTIVE DATE. This section is effective the day following final enactment, 
76.15 	upon compliance by the city of Proctor with Minnesota Statutes, section 645.021, 
76.16 	subdivision 3.

76.17 	Sec. 12. CITY OF CLEARWATER; TAXES AUTHORIZED.
 76.18 		Subdivision 1.Sales and use tax. Notwithstanding Minnesota Statutes, section 
76.19 	477A.016, or any other provision of law, ordinance, or city charter, pursuant to the 
76.20 	approval of the voters on November 7, 2006, the city of Clearwater may impose by 
76.21 	ordinance a sales and use tax of up to one-half of one percent for the purposes specified in 
76.22 	subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota 
76.23 	Statutes, section 297A.99, govern the imposition, administration, collection, and 
76.24 	enforcement of the tax authorized under this subdivision.
76.25 		Subd. 2.Excise tax authorized. Notwithstanding Minnesota Statutes, section 
76.26 	477A.016, or any other provision of law, ordinance, or city charter, the city of Clearwater 
76.27 	may impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up 
76.28 	to $20 per motor vehicle, as defined by ordinance, purchased or acquired from any person 
76.29 	engaged within the city in the business of selling motor vehicles at retail.
76.30 		Subd. 3.Use of revenues. The proceeds of the tax imposed under this section shall 
76.31 	be used to pay for the costs of acquisition, construction, improvement, and development 
76.32 	of regional parks and trails, a pedestrian bridge, and land and buildings for a community 
76.33 	and recreation center.
76.34 		Subd. 4.Bonding authority. The city of Clearwater may issue bonds in an amount 
76.35 	not to exceed $15,000,000 under Minnesota Statutes, chapter 475, to finance the capital 
77.1 	expenditures and improvements authorized by the referendum under subdivision 3. An 
77.2 	election to approve the bonds under Minnesota Statutes, section 475.59, is not required. 
77.3 	The issuance of bonds under this subdivision is not subject to Minnesota Statutes, section 
77.4 	275.60 or 275.61. The debt represented by the bonds must not be included in computing 
77.5 	any debt limitations applicable to the city, and the levy of taxes required by Minnesota 
77.6 	Statutes, section 475.61, to pay the principal or any interest on the bonds must not be 
77.7 	subject to any levy limitation.
77.8 		Subd. 5.Termination of tax. The tax authorized under subdivision 1 terminates at 
77.9 	the earlier of (1) 20 years after the date of initial imposition of the tax, or (2) when the 
77.10 	city council determines that sufficient funds have been raised from the tax to finance the 
77.11 	capital and administrative costs of the improvements described in subdivision 3, plus the 
77.12 	additional amount needed to pay the costs related to issuance of bonds under subdivision 
77.13 	4, including interest on the bonds. Any funds remaining after completion of the projects 
77.14 	specified in subdivision 3 and retirement or redemption of the bonds in subdivision 4 may 
77.15 	be placed in the general fund of the city. The tax imposed under subdivision 1 may expire 
77.16 	at an earlier time if the city so determines by ordinance.

77.17 	EFFECTIVE DATE. This section is effective the day after compliance by the 
77.18 	governing body of the city of Clearwater with Minnesota Statutes, section 645.021, 
77.19 	subdivisions 2 and 3.

77.20 	Sec. 13. CITY OF CLOQUET; TAXES AUTHORIZED.
 77.21 		Subdivision 1.Sales and use tax. Notwithstanding Minnesota Statutes, section 
77.22 	477A.016, or any other provision of law, ordinance, or city charter, if approved by the 
77.23 	voters pursuant to Minnesota Statutes, section 297A.99, or at a special election held for 
77.24 	this purpose, the city of Cloquet may impose by ordinance a sales and use tax of up to 
77.25 	one-half of one percent for the purposes specified in subdivision 3. Except as provided in 
77.26 	this section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
77.27 	administration, collection, and enforcement of the tax authorized under this subdivision.
77.28 		Subd. 2.Excise tax authorized. Notwithstanding Minnesota Statutes, section 
77.29 	477A.016, or any other provision of law, ordinance, or city charter, the city of Cloquet 
77.30 	may impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up 
77.31 	to $20 per motor vehicle, as defined by ordinance, purchased or acquired from any person 
77.32 	engaged within the city in the business of selling motor vehicles at retail.
77.33 		Subd. 3.Use of revenues. Revenues received from taxes authorized by subdivisions 
77.34 	1 and 2 must be used by the city to pay the cost of collecting the taxes and to pay for 
77.35 	the following projects: construction and completion of park improvement projects, 
78.1 	including, but not limited to, reconstruction of a community swimming pool complex and 
78.2 	all associated improvements; St. Louis River Riverfront improvements; Veteran's Park 
78.3 	construction and improvements; construction of a community center; improvements to 
78.4 	the Hilltop Park soccer complex, Braun Park baseball complex, Athletic Park, Sunnyside 
78.5 	Park, and Cloquet Area Recreation Center/Pine Valley Arena; and development of 
78.6 	pedestrian trails within the city.
78.7 	Authorized expenses include, but are not limited to, acquiring property and paying 
78.8 	construction expenses related to these improvements, and paying debt service on bonds or 
78.9 	other obligations issued to finance acquisition and construction of these improvements.
78.10 		Subd. 4.Bonding authority. (a) The city may issue bonds under Minnesota 
78.11 	Statutes, chapter 475, to pay capital and administrative expenses for the improvements 
78.12 	described in subdivision 3 in an amount that does not exceed $7,500,000. An election to 
78.13 	approve the bonds under Minnesota Statutes, section 475.58, is not required.
78.14 	(b) The issuance of bonds under this subdivision is not subject to Minnesota Statutes, 
78.15 	sections 275.60 and 275.61.
78.16 	(c) The debt represented by the bonds is not included in computing any debt 
78.17 	limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section 
78.18 	475.61, to pay principal of and interest on the bonds is not subject to any levy limitation.
78.19 		Subd. 5.Termination of taxes. The taxes imposed under subdivisions 1 and 2 
78.20 	expire at the earlier of (1) 30 years, or (2) when the city council determines that the amount 
78.21 	of revenues received from the taxes to finance the improvements described in subdivision 
78.22 	3 first equals or exceeds $7,500,000, plus the additional amount needed to pay the costs 
78.23 	related to issuance of bonds under subdivision 4, including interest on the bonds. Any 
78.24 	funds remaining after completion of the project and retirement or redemption of the bonds 
78.25 	may be placed in the general fund of the city.  The taxes imposed under subdivisions 1 and 
78.26 	2 may expire at an earlier time if the city so determines by ordinance.

78.27 	EFFECTIVE DATE. This section is effective the day after the governing body of 
78.28 	the city of Cloquet and its chief clerical officer timely comply with Minnesota Statutes, 
78.29 	section 645.021, subdivisions 2 and 3.

78.30 	Sec. 14. COOK COUNTY; TAXES AUTHORIZED.
 78.31 		Subdivision 1.Sales and use tax. Notwithstanding Minnesota Statutes, section 
78.32 	477A.016, or any other provision of law, ordinance, or city charter, if approved by the 
78.33 	voters at a general or special election held before December 31, 2009, Cook County 
78.34 	may impose by ordinance a sales and use tax of up to one percent for the purposes 
78.35 	specified in subdivision 2. Except as otherwise provided in this section, the provisions 
79.1 	of Minnesota Statutes, section 297A.99, govern the imposition of the tax authorized 
79.2 	under this subdivision.
79.3 		Subd. 2.Use of revenues. Revenues received from the tax authorized by 
79.4 	subdivision 1 must be used by Cook County to pay the costs of collecting the tax and 
79.5 	to pay for the following projects:
79.6 	(1) construction and improvements to a county community center and recreation 
79.7 	area, including, but not limited to, improvements and additions to the skateboard park, 
79.8 	hockey rink, ball fields, community center addition, county parking area, tennis courts, 
79.9 	and all associated improvements;
79.10 	(2) construction and improvements to the Grand Marais pool; and
79.11 	(3) construction and improvements to the Grand Marais Public Library.
79.12 	Authorized expenses include, but are not limited to, paying construction expenses related 
79.13 	to these improvements, and paying debt service on bonds or other obligations issued to 
79.14 	finance acquisition and construction of these improvements.
79.15 		Subd. 3.Bonding authority. Cook County may issue bonds under Minnesota 
79.16 	Statutes, chapter 475, to pay capital and administrative expenses for the projects authorized 
79.17 	in subdivision 2, in an amount that does not exceed $14,000,000. An election to approve 
79.18 	the bonds under Minnesota Statutes, section 475.58, is not required. The issuance of bonds 
79.19 	under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61. 
79.20 	The debt represented by the bonds is not included in computing any debt limitation 
79.21 	applicable to the county, and any levy of taxes under Minnesota Statutes, section 475.61, 
79.22 	to pay principal and interest on the bonds is not subject to any levy limitation.
79.23 		Subd. 4.Termination of tax. The tax imposed under subdivision 1 expires at the 
79.24 	later of (1) 20 years or (2) when the county board determines that the amount of revenues 
79.25 	received is sufficient to pay for the principal and interest on any bonds or obligation 
79.26 	issued to finance the projects in subdivision 2. Any funds remaining after completion of 
79.27 	the projects and retirement or redemption of the bonds may be placed in the general fund 
79.28 	of the county. The tax imposed under subdivision 1 may expire at an earlier time if the 
79.29 	county board so determines by ordinance.

79.30 	EFFECTIVE DATE. This section is effective the day after the governing body of 
79.31 	Cook County and its chief clerical officer timely comply with Minnesota Statutes, section 
79.32 	645.021, subdivisions 2 and 3.

79.33 	Sec. 15. CITY OF ELY; SALES AND USE TAX.
 80.1 		Subdivision 1.Sales and use tax authorized. Notwithstanding Minnesota Statutes, 
80.2 	section 477A.016, or any other provision of law, ordinance, or city charter, if approved by 
80.3 	the voters pursuant to Minnesota Statutes, section 297A.99, the city of Ely may impose by 
80.4 	ordinance a sales and use tax of up to one percent for the purposes specified in subdivision 
80.5 	3. Except as otherwise provided in this section, the provisions of Minnesota Statutes, 
80.6 	section 297A.99, govern the imposition, administration, collection, and enforcement of 
80.7 	the tax authorized under this subdivision.
80.8 		Subd. 2.Excise tax authorized. Notwithstanding Minnesota Statutes, section 
80.9 	477A.016, or any other provision of law, ordinance, or city charter, the city of Ely may 
80.10 	impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up to 
80.11 	$20 per motor vehicle, as defined by ordinance, purchased or acquired from any person 
80.12 	engaged within the city in the business of selling motor vehicles at retail.
80.13 		Subd. 3.Use of revenues. The proceeds of the tax imposed under this section 
80.14 	must be used by the city of Ely to pay the costs of collecting and administering the tax 
80.15 	and to pay the following costs:
80.16 	(1) establishment of an entry to the Boundary Waters that includes the chamber of 
80.17 	commerce, visitor center, and related facilities;
80.18 	(2) construction of a pool facility that would support Independent School District 
80.19 	No. 696 and Ely Bloomenson Community Hospital;
80.20 	(3) infrastructure improvement related to the expansion of the Ely Bloomenson 
80.21 	Community Hospital; and
80.22 	(4) community center use transition to establish the Boundary Waters Historical 
80.23 	Center and provide for compliance with the Americans with Disabilities Act.
80.24 		Subd. 4.Bonding authority. (a) If the tax authorized under subdivision 1 is 
80.25 	approved by the voters, the city of Ely may issue bonds under Minnesota Statutes, 
80.26 	chapter 475, to pay the capital and administrative expenses for the improvement projects 
80.27 	authorized under subdivision 2. The total amount of bonds issued for the projects listed in 
80.28 	subdivision 3 may not exceed $15,000,000 in aggregate. An election to approve the bonds 
80.29 	under Minnesota Statutes, section 475.58, is not required.
80.30 	(b) The debt represented by the bonds is not included in computing any debt 
80.31 	limitation applicable to the city of Ely, and the levy of taxes under Minnesota Statutes, 
80.32 	section 475.61, to pay the principal of and interest on the bonds is not subject to any 
80.33 	levy limitation. 
80.34 		Subd. 5.Termination of tax. The tax authorized under this section expires when 
80.35 	the city council determines that the taxes imposed under this subdivision have raised 
81.1 	revenue sufficient to pay the bonds authorized in subdivision 4, including administrative 
81.2 	costs and interest.
81.3 	Any funds remaining after completion of the projects and retirement or redemption 
81.4 	of the bonds may be placed in the general fund of the city. The taxes imposed under 
81.5 	subdivisions 1 and 2 may expire at an earlier time if the city so determines by ordinance.

81.6 	EFFECTIVE DATE. This section is effective the day after compliance by the 
81.7 	governing body of the city of Ely with Minnesota Statutes, section 645.021, subdivisions 
81.8 	2 and 3.

81.9 	Sec. 16. CITY OF MANKATO; LOCAL TAXES AUTHORIZED.
 81.10 		Subdivision 1.Food and beverage tax authorized. Notwithstanding Minnesota 
81.11 	Statutes, section 477A.016, or any ordinance, city charter, or other provision of law, the 
81.12 	city of Mankato may, by ordinance, impose a sales tax of up to one percent on the gross 
81.13 	receipts on all sales of food and beverages by a restaurant or place of refreshment, as 
81.14 	defined by resolution of the city, that are located within the city. For purposes of this 
81.15 	section, "food and beverages" include retail on-sale of intoxicating liquor and fermented 
81.16 	malt beverages.
81.17 		Subd. 2.Entertainment tax. Notwithstanding Minnesota Statutes, section 
81.18 	477A.016, or any ordinance, city charter, or other provision of law, the city of Mankato 
81.19 	may, by ordinance, impose a tax of up to one percent on the gross receipts on admissions to 
81.20 	an entertainment event located within the city. For purposes of this section "entertainment 
81.21 	event" means any event for which persons pay money in order to be admitted to the 
81.22 	premises and to be entertained including, but not limited to, theaters, concerts, and 
81.23 	sporting events.
81.24 		Subd. 3.Use of proceeds from authorized taxes. The proceeds of any tax imposed 
81.25 	under subdivisions 1 and 2 shall be used by the city to pay all or a portion of the expenses 
81.26 	of operation and maintenance of the Riverfront 2000 and related facilities, including a 
81.27 	performing arts theatre and the Southern Minnesota Women's Hockey Exposition Center, 
81.28 	attached to the Mankato Civic Center for use by Minnesota State University, Mankato. 
81.29 	Authorized expenses include securing or paying debt service on bonds or other obligations 
81.30 	issued to finance the construction of the facilities.
81.31 		Subd. 4.Collection, administration, and enforcement. If the city desires, it may 
81.32 	enter into an agreement with the commissioner of revenue to administer, collect, and 
81.33 	enforce the taxes authorized under subdivisions 1 and 2. If the commissioner agrees 
81.34 	to collect the tax, the provisions of Minnesota Statutes, section 297A.99, related to 
81.35 	collection, administration, and enforcement apply.

82.1 	EFFECTIVE DATE. This section is effective the day after the governing body of 
82.2 	the city of Mankato and its chief clerical officer comply with Minnesota Statutes, section 
82.3 	645.021, subdivisions 2 and 3.

82.4 	Sec. 17. MINNETONKA WATER TREATMENT FACILITY.
 82.5 	Capital equipment used in or incorporated into the construction of a water treatment 
82.6 	facility owned by the city of Minnetonka is exempt from sales tax regardless of whether 
82.7 	purchased by the owner, contractor, subcontractor, or builder. The tax must be imposed 
82.8 	and collected as if the rate under Minnesota Statutes, section 297A.62, subdivision 1, 
82.9 	applied and then refunded to the city of Minnetonka in the manner provided in Minnesota 
82.10 	Statutes, section 297A.75. Refunds must not be issued until after July 1, 2008.

82.11 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
82.12 	made before December 31, 2006.

82.13 	Sec. 18. CITY OF NORTH MANKATO; TAXES AUTHORIZED.
 82.14 		Subdivision 1.Sales and use tax authorized.  Notwithstanding Minnesota Statutes, 
82.15 	section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to 
82.16 	the approval of the voters on November 7, 2006, the city of North Mankato may impose 
82.17 	by ordinance a sales and use tax of one-half of one percent for the purposes specified 
82.18 	in subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the 
82.19 	imposition, administration, collection, and enforcement of the taxes authorized under 
82.20 	this subdivision. 
82.21 		Subd. 2.Use of revenues.  Revenues received from the tax authorized by 
82.22 	subdivision 1 must be used to pay all or part of the capital costs of the following projects: 
82.23 	(1) the local share of the Trunk Highway 14/County State Aid Highway 41 
82.24 	interchange project; 
82.25 	(2) development of regional parks and hiking and biking trails;
82.26 	(3) expansion of the North Mankato Taylor Library;
82.27 	(4) riverfront redevelopment; and
82.28 	(5) lake improvement projects.
82.29 	The total amount of revenues from the tax in subdivision 1 that may be used to fund 
82.30 	these projects is $4,000,000 plus any associated bond costs.
82.31 		Subd. 3.Bonds.  (a) The city of North Mankato, pursuant to the approval of the 
82.32 	voters at the November 7, 2006, referendum authorizing the imposition of the taxes in 
82.33 	this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital and 
82.34 	administrative expenses for the projects described in subdivision 2, in an amount that 
83.1 	does not exceed $6,000,000. A separate election to approve the bonds under Minnesota 
83.2 	Statutes, section 475.58, is not required.
83.3 	(b) The debt represented by the bonds is not included in computing any debt 
83.4 	limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section 
83.5 	475.61, to pay principal and interest on the bonds is not subject to any levy limitation.
83.6 		Subd. 4.Termination of taxes.  The tax imposed under subdivision 1 expires 
83.7 	when the city council determines that the amount of revenues received from the taxes 
83.8 	to pay for the projects under subdivision 2, first equals or exceeds $6,000,000 plus the 
83.9 	additional amount needed to pay the costs related to issuance of bonds under subdivision 
83.10 	3, including interest on the bonds. Any funds remaining after completion of the projects 
83.11 	and retirement or redemption of the bonds shall be placed in a capital facilities and 
83.12 	equipment replacement fund of the city. The tax imposed under subdivision 1 may expire 
83.13 	at an earlier time if the city so determines by ordinance. 

83.14 	EFFECTIVE DATE. This section is effective the day after compliance by the 
83.15 	governing body of the city of North Mankato with Minnesota Statutes, section 645.021, 
83.16 	subdivision 3.

83.17 	Sec. 19. CITY OF WINONA; TAXES AUTHORIZED.
 83.18 		Subdivision 1.Sales and use tax. Notwithstanding Minnesota Statutes, section 
83.19 	477A.016, or any other provision of law, ordinance, or city charter, if approved by the 
83.20 	voters at a general or special election held before December 31, 2009, the city of Winona 
83.21 	may impose by ordinance a sales and use tax of up to one-half of one percent for the 
83.22 	purpose specified in subdivision 2. Except as otherwise provided in this section, the 
83.23 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
83.24 	collection, and enforcement of the tax authorized under this subdivision.
83.25 		Subd. 2.Use of revenues. The proceeds of the tax imposed under this section shall 
83.26 	be used to pay the city-borne costs for the construction of a street connection from the city 
83.27 	of Winona to Minnesota State Highways 61 and 43. The construction will provide access 
83.28 	to the city's newly built industrial park and additional access to a hospital.
83.29 		Subd. 3.Bonding authority. The city of Winona may issue bonds in an amount 
83.30 	not to exceed $8,000,000 under Minnesota Statutes, chapter 475, to finance the capital 
83.31 	expenditures under subdivision 2. An election to approve the bonds under Minnesota 
83.32 	Statutes, section 475.58, is not required. The issuance of bonds under this subdivision is 
83.33 	not subject to Minnesota Statutes, section 275.60 or 275.61. The debt represented by the 
83.34 	bonds must not be included in computing any debt limitations applicable to the city, and 
84.1 	the levy of taxes required by Minnesota Statutes, section 475.61, to pay the principal or 
84.2 	any interest on the bonds must not be subject to any levy limitation.
84.3 		Subd. 4.Termination of tax. The tax authorized under subdivision 1 terminates 
84.4 	at the earlier of: (1) five years after the date of initial imposition of the tax; or (2) when 
84.5 	the city council determines that sufficient funds have been raised from the tax to finance 
84.6 	the capital and administrative costs of the project described in subdivision 2, plus the 
84.7 	additional amount needed to pay the costs related to issuance of bonds under subdivision 
84.8 	3, including interest on the bonds. Any funds remaining after completion of the project 
84.9 	specified in subdivision 2 and retirement or redemption of the bonds in subdivision 3 may 
84.10 	be placed in the general fund of the city. The tax imposed under subdivision 1 may expire 
84.11 	at an earlier time if the city so determines by ordinance.

84.12 	EFFECTIVE DATE. This section is effective the day after compliance by 
84.13 	the governing body of the city of Winona with Minnesota Statutes, section 645.021, 
84.14 	subdivisions 2 and 3.

84.15 	Sec. 20.  REPEALER.
 84.16 	Laws 2005, First Special Session chapter 3, article 5, section 24, is repealed.

84.17 	EFFECTIVE DATE. This section is effective upon enactment of section 6.

84.18 	ARTICLE 6
84.19 	JUNE ACCELERATED TAX PAYMENTS

84.20 	Section 1. Minnesota Statutes 2006, section 289A.20, subdivision 4, as amended by 
84.21 	Laws 2008, chapter 154, article 6, section 1, is amended to read:
84.22 		Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and 
84.23 	payable to the commissioner monthly on or before the 20th day of the month following the 
84.24 	month in which the taxable event occurred, or following another reporting period as the 
84.25 	commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph 
84.26 	(f) or (g), except that use taxes due on an annual use tax return as provided under section 
84.27 	289A.11, subdivision 1, are payable by April 15 following the close of the calendar year. 
84.28 	(b) A vendor having a liability of $120,000 or more during a fiscal year ending June 
84.29 	30 must remit the June liability for the next year in the following manner: 
84.30 	(1) Two business days before June 30 of the year, the vendor must remit 80 90
84.31 	percent of the estimated June liability to the commissioner. 
84.32 	(2) On or before August 20 of the year, the vendor must pay any additional amount 
84.33 	of tax not remitted in June. 
85.1 	(c) A vendor having a liability of: 
85.2 	(1) $20,000 or more in the fiscal year ending June 30, 2005; or 
85.3 	(2) $10,000 or more in the fiscal year ending June 30, 2006, and fiscal years 
85.4 	thereafter, 
85.5 	must remit all liabilities on returns due for periods beginning in the subsequent calendar 
85.6 	year by electronic means on or before the 20th day of the month following the month in 
85.7 	which the taxable event occurred, or on or before the 20th day of the month following the 
85.8 	month in which the sale is reported under section 289A.18, subdivision 4, except for 80 90
85.9 	percent of the estimated June liability, which is due two business days before June 30. The 
85.10 	remaining amount of the June liability is due on August 20. 

85.11 	EFFECTIVE DATE. This section is effective beginning with June 2009 tax 
85.12 	liabilities.

85.13 	Sec. 2. Minnesota Statutes 2006, section 289A.60, subdivision 15, as amended by 
85.14 	Laws 2008, chapter 154, article 6, section 2, is amended to read:
85.15 		Subd. 15. Accelerated payment of June sales tax liability; penalty for 
85.16 	underpayment. For payments made after December 31, 2006, if a vendor is required by 
85.17 	law to submit an estimation of June sales tax liabilities and 80 90 percent payment by a 
85.18 	certain date, the vendor shall pay a penalty equal to ten percent of the amount of actual 
85.19 	June liability required to be paid in June less the amount remitted in June. The penalty 
85.20 	must not be imposed, however, if the amount remitted in June equals the lesser of 80 90
85.21 	percent of the preceding May's liability or 80 90 percent of the average monthly liability 
85.22 	for the previous calendar year. 

85.23 	EFFECTIVE DATE. This section is effective beginning with June 2009 tax 
85.24 	liabilities.

85.25 	Sec. 3. Minnesota Statutes 2006, section 297F.09, subdivision 10, as amended by Laws 
85.26 	2008, chapter 154, article 6, section 3, is amended to read:
85.27 		Subd. 10. Accelerated tax payment; cigarette or tobacco products distributor.
 85.28 	A cigarette or tobacco products distributor having a liability of $120,000 or more during a 
85.29 	fiscal year ending June 30, shall remit the June liability for the next year in the following 
85.30 	manner: 
85.31 	(a) Two business days before June 30 of the year, the distributor shall remit the 
85.32 	actual May liability and 80 90 percent of the estimated June liability to the commissioner 
85.33 	and file the return in the form and manner prescribed by the commissioner. 
86.1 	(b) On or before August 18 of the year, the distributor shall submit a return showing 
86.2 	the actual June liability and pay any additional amount of tax not remitted in June. A 
86.3 	penalty is imposed equal to ten percent of the amount of June liability required to be paid 
86.4 	in June, less the amount remitted in June. However, the penalty is not imposed if the 
86.5 	amount remitted in June equals the lesser of: 
86.6 	(1) 80 90 percent of the actual June liability; or 
86.7 	(2) 80 90 percent of the preceding May's liability. 

86.8 	EFFECTIVE DATE. This section is effective beginning with June 2009 tax 
86.9 	liabilities.

86.10 	Sec. 4. Minnesota Statutes 2006, section 297G.09, subdivision 9, as amended by Laws 
86.11 	2008, chapter 154, article 6, section 4, is amended to read:
86.12 		Subd. 9. Accelerated tax payment; penalty. A person liable for tax under this 
86.13 	chapter having a liability of $120,000 or more during a fiscal year ending June 30, shall 
86.14 	remit the June liability for the next year in the following manner: 
86.15 	(a) Two business days before June 30 of the year, the taxpayer shall remit the actual 
86.16 	May liability and 80 90 percent of the estimated June liability to the commissioner and file 
86.17 	the return in the form and manner prescribed by the commissioner. 
86.18 	(b) On or before August 18 of the year, the taxpayer shall submit a return showing 
86.19 	the actual June liability and pay any additional amount of tax not remitted in June. A 
86.20 	penalty is imposed equal to ten percent of the amount of June liability required to be paid 
86.21 	in June less the amount remitted in June. However, the penalty is not imposed if the 
86.22 	amount remitted in June equals the lesser of: 
86.23 	(1) 80 90 percent of the actual June liability; or 
86.24 	(2) 80 90 percent of the preceding May liability. 

86.25 	EFFECTIVE DATE. This section is effective beginning with June 2009 tax 
86.26 	liabilities.

86.27 	ARTICLE 7
86.28 	SPECIAL TAXES

86.29 	Section 1. Minnesota Statutes 2006, section 60A.196, is amended to read:
86.30 	60A.196 DEFINITIONS.
86.31 	Unless the context otherwise requires, the following terms have the meanings given 
86.32 	them for the purposes of sections 60A.195 to 60A.209: 
87.1 	(a) "Surplus lines insurance" means insurance placed with an insurer permitted 
87.2 	to transact the business of insurance in this state only pursuant to sections 60A.195 to 
87.3 	60A.209. 
87.4 	(b) "Eligible surplus lines insurer" means an insurer recognized as eligible to write 
87.5 	insurance business under sections 60A.195 to 60A.209 but not licensed by any other 
87.6 	Minnesota law to transact the business of insurance. 
87.7 	(c) "Ineligible surplus lines insurer" means an insurer not recognized as an eligible 
87.8 	surplus lines insurer pursuant to sections 60A.195 to 60A.209 and not licensed by any 
87.9 	other Minnesota law to transact the business of insurance. "Ineligible surplus lines 
87.10 	insurer" includes a risk retention group as defined under the Liability Risk Retention 
87.11 	Act, Public Law 99-563. 
87.12 	(d) "Surplus lines licensee" or "licensee" means a person licensed under sections 
87.13 	60A.195 to 60A.209 to place insurance with an eligible or ineligible surplus lines insurer. 
87.14 	(e) "Association" means an association registered under section 60A.208. 
87.15 	(f) "Alien insurer" means any insurer which is incorporated or otherwise organized 
87.16 	outside of the United States.
87.17 	(g) "Insurance laws" means chapters 60 to 79 inclusive.
87.18 	(h) "Stamping" means electronically assigning a unique identifying number that is 
87.19 	specific to a submitted policy, contract, or insurance document.

87.20 	EFFECTIVE DATE. This section is effective the day following final enactment 
87.21 	and applies to policies written or renewed on or after that date.

87.22 	Sec. 2. [60A.2085] SURPLUS LINES ASSOCIATION OF MINNESOTA.
87.23 		Subdivision 1.Association created; duties. There is hereby created a nonprofit 
87.24 	association to be known as the Surplus Lines Association of Minnesota. All surplus lines 
87.25 	licensees are members of this association. Section 60A.208, subdivision 5, does not apply 
87.26 	to the provisions of this section. The association shall perform its functions under the 
87.27 	plan of operation established under subdivision 3 and must exercise its powers through a 
87.28 	board of directors established under subdivision 2. The association shall be authorized 
87.29 	and have the duty to:
87.30 	(1) receive, record, and stamp all surplus lines insurance documents that surplus 
87.31 	lines licensees are required to file with the association;
87.32 	(2) prepare and deliver monthly to the commissioners of revenue and commerce a 
87.33 	report regarding surplus lines business. The report must include a list of all the business 
87.34 	procured during the preceding month, in the form the commissioners prescribe;
88.1 	(3) educate its members regarding the surplus lines law of this state including 
88.2 	insurance tax responsibilities and the rules and regulations of the commissioners of 
88.3 	revenue and commerce relative to surplus lines insurance;
88.4 	(4) communicate with organizations of agents, brokers, and admitted insurers with 
88.5 	respect to the proper use of the surplus lines market;
88.6 	(5) employ and retain persons necessary to carry out the duties of the association;
88.7 	(6) borrow money necessary to effect the purposes of the association;
88.8 	(7) enter contracts necessary to effect the purposes of the association;
88.9 	(8) provide other services to its members that are incidental or related to the 
88.10 	purposes of the association; and
88.11 	(9) take other actions reasonably required to implement the provisions of this section.
88.12 		Subd. 2.Board of directors. (a) The commissioner shall appoint an interim board 
88.13 	of five directors within 30 days of enactment of this section. The interim board must:
88.14 	(1) establish a plan of operation within 60 days after the appointment of the interim 
88.15 	board;
88.16 	(2) create a stamping office that is operational no later than December 31, 2008; and 
88.17 	(3) conduct an election for a board of directors by the membership after December 
88.18 	31, 2008, and no later than one year after the appointment of the interim board.
88.19 	(b) Once the responsibilities of the interim board in paragraph (a) are fulfilled, the 
88.20 	association shall function through a board of directors composed of the following:
88.21 	(1) one director appointed by the commissioner of revenue;
88.22 	(2) one director appointed by the commissioner of commerce; and
88.23 	(3) at least five but no more than seven directors elected by the members. The 
88.24 	elected directors must be members of the association.
88.25 	Directors may serve until their successors are appointed or elected and their terms 
88.26 	are completed as outlined in the plan of operation.
88.27 		Subd. 3.Plan of operation. (a) The plan of operation shall provide for the 
88.28 	formation, operation, and governance of the association. The plan of operation must 
88.29 	provide for the election of a board of directors by the members of the association. The 
88.30 	board of directors shall elect officers as provided for in the plan of operation. The plan 
88.31 	of operation shall establish the manner of voting and may weigh each member's vote to 
88.32 	reflect the annual surplus lines insurance premium written by the member. Members 
88.33 	employed by the same or affiliated employers may consolidate their premiums written 
88.34 	and delegate an individual officer or partner to represent the member in the exercise of 
88.35 	association affairs, including service on the board of directors.
89.1 	(b) The plan of operation shall provide for an independent audit once each year of all 
89.2 	the books and records of the association and a report of such independent audit shall be 
89.3 	made to the board of directors, the commissioner of revenue, and the commissioner of 
89.4 	commerce, with a copy made available to each member to review at the association office.
89.5 	(c) The plan of operation and any amendments to the plan of operation shall be 
89.6 	submitted to the commissioner and shall be effective upon approval in writing by the 
89.7 	commissioner. The association and all members shall comply with the plan of operation or 
89.8 	any amendments to it. Failure to comply with the plan of operation or any amendments 
89.9 	shall constitute a violation for which the commissioner may issue an order requiring 
89.10 	discontinuance of the violation.
89.11 	(d) If the interim board of directors fails to submit a suitable plan of operation 
89.12 	within 60 days following the creation of the interim board, or if at any time thereafter the 
89.13 	association fails to submit required amendments to the plan, the commissioner may submit 
89.14 	to the association a plan of operation or amendments to the plan, which the association 
89.15 	must follow. The plan of operation or amendments submitted by the commissioner shall 
89.16 	continue in force until amended by the commissioner or superseded by a plan of operation 
89.17 	or amendment submitted by the association and approved by the commissioner. A plan 
89.18 	of operation or an amendment submitted by the commissioner constitutes an order of 
89.19 	the commissioner.
89.20 		Subd. 4.Reporting requirement. The association shall file with the commissioner:
89.21 	(1) a copy of its plan of operation and any amendments to it;
89.22 	(2) a current list of its members revised at least annually; and
89.23 	(3) the name and address of a member of the board residing in this state upon 
89.24 	whom notices or orders of the commissioner or processes issued at the direction of the 
89.25 	commissioner may be served.
89.26 		Subd. 5.Examination. The commissioner shall, at such times as deemed necessary, 
89.27 	make or cause to be made an examination of the association. The officers, managers, 
89.28 	agents, and employees of the association may be examined at any time, under oath, and 
89.29 	shall exhibit all books, records, accounts, documents, or agreements governing its method 
89.30 	of operation. The commissioner shall furnish a copy of the examination report to the 
89.31 	association. If the commissioner finds the association to be in violation of this section, the 
89.32 	commissioner may issue an order requiring the discontinuance of the violation.
89.33 		Subd. 6.Immunity. There shall be no liability on the part of and no causes of action 
89.34 	of any nature shall arise against the association, its directors, officers, agents, or employees 
89.35 	for any action taken or omitted by them in the performance of their powers and duties 
89.36 	under this section, absent gross negligence or willful misconduct.
90.1 		Subd. 7.Stamping fee. The services performed by the association shall be 
90.2 	funded by a stamping fee assessed for each premium-bearing document submitted to 
90.3 	the association. The stamping fee shall be established by the board of directors of the 
90.4 	association from time to time. The stamping fee shall be paid by the insured to the surplus 
90.5 	lines licensee and remitted electronically to the association by the surplus lines licensee.
90.6 		Subd. 8.Data classification. Unless otherwise classified by statute, a temporary 
90.7 	classification under section 13.06, or federal law, information obtained by the 
90.8 	commissioner from the association is public, except that any data identifying insureds is 
90.9 	private data on individuals or nonpublic data as defined in section 13.02, subdivisions 
90.10 	9 and 12.

90.11 	EFFECTIVE DATE. This section is effective the day following final enactment 
90.12 	and applies to policies written or renewed on or after that date.

90.13 	Sec. 3. [60A.2086] LICENSEE'S DUTY TO SUBMIT DOCUMENTS; PENALTY.
90.14 		Subdivision 1.Submission of documents to the Surplus Lines Association 
90.15 	of Minnesota; certification. (a) A surplus lines licensee shall submit every insurance 
90.16 	policy or contract issued under the licensee's license to the Surplus Lines Association of 
90.17 	Minnesota for recording and stamping. The submission and stamping must be effected 
90.18 	through electronic means. The submission must include:
90.19 	(1) the name of the insured;
90.20 	(2) a description and location of the insured property or risk;
90.21 	(3) the amount insured;
90.22 	(4) the gross premiums charged or returned;
90.23 	(5) the name of the surplus lines insurer from whom coverage has been procured;
90.24 	(6) the kind or kinds of insurance procured; and
90.25 	(7) the amount of premium subject to tax.
90.26 	(b) The submission of insurance policies or contracts to the Surplus Lines 
90.27 	Association of Minnesota constitutes a certification by the surplus lines licensee, or by the 
90.28 	insurance producer who presented the risk to the surplus lines licensee for placement as a 
90.29 	surplus lines risk, that the insurance policies or contracts were procured in accordance 
90.30 	with sections 60A.195 to 60A.209.
90.31 		Subd. 2.Stamping requirement; penalty. (a) It shall be unlawful for an insurance 
90.32 	agent, broker, or surplus lines licensee to deliver in this state any surplus lines insurance 
90.33 	policy or contract unless the insurance document is stamped by the association. A 
90.34 	licensee's failure to comply with the requirements of this subdivision shall not affect the 
90.35 	validity of the coverage.
91.1 	(b) Any insurance agent, broker, or surplus lines licensee who delivers in this state 
91.2 	any insurance policy or contract that has not been stamped by the association shall be 
91.3 	subject to a penalty payable to the commissioner as follows:
91.4 	(1) $50 for delivery of the first unstamped policy;
91.5 	(2) $250 for delivery of a second unstamped policy; and
91.6 	(3) $1,000 per policy for delivery of any additional unstamped policies.

91.7 	EFFECTIVE DATE. This section is effective January 1, 2009, and applies to 
91.8 	policies written or renewed after December 31, 2008.

91.9 	Sec. 4. Minnesota Statutes 2006, section 296A.01, subdivision 44, is amended to read:
91.10 		Subd. 44.Received. (a) Except as otherwise provided in this subdivision, petroleum 
91.11 	products brought into this state shall be deemed to be "received" in this state at the time 
91.12 	and place they are unloaded in this state. When so unloaded such products shall be 
91.13 	deemed to be received in this state by the person who is the owner immediately after such 
91.14 	unloading; provided, however, that if such owner is not licensed as a distributor in this 
91.15 	state and if such products were shipped or delivered into this state by a person who is 
91.16 	licensed as a distributor, then such products shall be deemed to be received in this state by 
91.17 	the licensed distributor by whom the same were so shipped or delivered.
91.18 	(b) Petroleum products produced, manufactured, or refined, at a refinery in this 
91.19 	state and stored there, or brought into the state by boat or, barge, or rail, or like form of 
91.20 	transportation and delivered at a marine terminal in this state and stored there, or brought 
91.21 	into the state by pipeline and delivered at a pipeline terminal in this state and stored 
91.22 	there, or brought into the state by rail car, shall not be considered received until they are 
91.23 	withdrawn from such refinery or terminal for sale or use in this state or for delivery or 
91.24 	shipment to points within this state.
91.25 	(c) When withdrawn such products shall be deemed received by the person who was 
91.26 	the owner immediately prior to withdrawal; unless (1) such products are withdrawn for 
91.27 	shipment or delivery to another licensed distributor, in which case the licensed distributor 
91.28 	to whom such shipment or delivery is made shall be deemed to have received such 
91.29 	products in this state, or (2) such products are withdrawn for shipment or delivery to a 
91.30 	person not licensed as a distributor, under one or more sale or exchange agreements by 
91.31 	or between persons one or more of whom is a licensed distributor, in which case the 
91.32 	last purchaser or exchangee under such agreement or agreements, who is licensed as a 
91.33 	distributor, shall be deemed to have received such products in this state.
92.1 	(d) Petroleum products produced in this state in any manner other than as covered 
92.2 	in this subdivision shall be considered received by the producer at the time and place 
92.3 	produced.

92.4 	Sec. 5. Minnesota Statutes 2006, section 296A.01, subdivision 45, is amended to read:
92.5 		Subd. 45.Refinery or terminal. "Refinery" or "terminal" means any petroleum 
92.6 	refinery, pipeline terminal, river terminal, storage facility, rail car, or other point of origin 
92.7 	where petroleum products are manufactured, or imported by rail, truck, barge, or pipe; 
92.8 	and held, stored, transferred, offered for distribution, distributed, offered for sale, or sold. 
92.9 	For the purpose of restricting petroleum product blending, this definition includes all 
92.10 	refineries and terminals within and outside of Minnesota. For the purpose of assessing 
92.11 	fees, this definition does not include a licensed distributor's bulk storage facility that is 
92.12 	used to store petroleum products for which the petroleum inspection fee charged under 
92.13 	chapter 239 is either not due or has been paid.

92.14 	Sec. 6. Minnesota Statutes 2006, section 296A.03, subdivision 2, is amended to read:
92.15 		Subd. 2.Qualifications. (a) A distributor's license shall be issued to any responsible 
92.16 	person who applies and qualifies as a distributor.
92.17 	(b) Upon application to the commissioner, the commissioner must issue a 
92.18 	distributor's license to any person who:
92.19 	(1) receives petroleum products in this state for bulk storage and subsequent 
92.20 	distribution by tank truck;
92.21 	(2) produces, manufactures, or refines petroleum products in this state;
92.22 	(3) holds an unrevoked license as a distributor as of July 1, 1994;
92.23 	(4) imports petroleum products into this state via boat, barge, or pipeline for storage 
92.24 	and subsequent delivery at or further transportation from boat, barge, or pipeline terminals 
92.25 	in this state; or
92.26 	(5) imports petroleum products into this state via rail car for storage and subsequent 
92.27 	delivery from the rail car in this state; or
92.28 	(6) holds a license and performs a function under the motor fuel tax law of an 
92.29 	adjoining state equivalent to that of a distributor under this chapter, who desires to ship 
92.30 	or deliver petroleum products from that state to persons in this state not licensed as 
92.31 	distributors in this state and who agrees to assume with respect to all petroleum products 
92.32 	so shipped or delivered the liabilities of a distributor receiving petroleum products in 
92.33 	this state; provided, however, that any such license shall be issued only for the purpose 
92.34 	of permitting such person to receive in this state the petroleum products so shipped or 
93.1 	delivered. Except as herein provided, all persons licensed as distributors under this clause 
93.2 	shall have the same rights and privileges and be subject to the same duties, requirements, 
93.3 	and penalties as other licensed distributors.

93.4 	Sec. 7. Minnesota Statutes 2006, section 383A.80, subdivision 4, is amended to read:
93.5 		Subd. 4.Expiration. The authority to impose the tax under this section expires 
93.6 	January 1, 2008 2013.

93.7 	Sec. 8. Minnesota Statutes 2006, section 383A.81, subdivision 1, is amended to read:
93.8 		Subdivision 1.Creation. An environmental response fund is created for the 
93.9 	purposes specified in this section. The taxes imposed by section 383A.80 must be 
93.10 	deposited in the fund. The board of county commissioners shall administer the fund either 
93.11 	as a county board, or a housing and redevelopment authority, or a regional rail authority. 

93.12 	Sec. 9. Minnesota Statutes 2006, section 383A.81, subdivision 2, is amended to read:
93.13 		Subd. 2.Uses of fund. The fund created in subdivision 1 must be used for the 
93.14 	following purposes:
93.15 	(1) acquisition through purchase or condemnation of lands or property which are 
93.16 	polluted or contaminated with hazardous substances;
93.17 	(2) paying the costs associated with indemnifying or holding harmless the 
93.18 	entity taking title to lands or property from any liability arising out of the ownership, 
93.19 	remediation, or use of the land or property;
93.20 	(3) paying for the costs of remediating the acquired land or property; or
93.21 	(4) paying the costs associated with remediating lands or property which are polluted 
93.22 	or contaminated with hazardous substances; or
93.23 	(5) paying for the costs associated with improving the property for economic 
93.24 	development, recreational, housing, transportation or rail traffic.

93.25 	Sec. 10. Minnesota Statutes 2006, section 383B.80, subdivision 4, is amended to read:
93.26 		Subd. 4.Expiration. The authority to impose the tax under this section expires 
93.27 	January 1, 2008 2013.

93.28 	Sec. 11. Minnesota Statutes 2006, section 383B.81, subdivision 1, is amended to read:
93.29 		Subdivision 1.Creation. An environmental response fund is created for the 
93.30 	purposes specified in this section. The taxes imposed by section 383B.80 must be 
94.1 	deposited in the fund. The board of county commissioners shall administer the fund either 
94.2 	as a county board,or a housing and redevelopment authority, or a regional rail authority. 

94.3 	Sec. 12. Minnesota Statutes 2006, section 383B.81, subdivision 2, is amended to read:
94.4 		Subd. 2.Uses of fund. The fund created in subdivision 1 must be used for the 
94.5 	following purposes:
94.6 	(1) acquisition through purchase or condemnation of lands or property which are 
94.7 	polluted or contaminated with hazardous substances;
94.8 	(2) paying the costs associated with indemnifying or holding harmless the 
94.9 	entity taking title to lands or property from any liability arising out of the ownership, 
94.10 	remediation, or use of the land or property;
94.11 	(3) paying for the costs of remediating the acquired land or property; or
94.12 	(4) paying the costs associated with remediating lands or property which are polluted 
94.13 	or contaminated with hazardous substances; or
94.14 	(5) paying for the costs associated with improving the property for economic 
94.15 	development, recreational, housing, transportation or rail traffic.

94.16 	Sec. 13. [383C.798] COUNTY DEED AND MORTGAGE TAX.
94.17 		Subdivision 1.Authority to impose; rate. (a) The governing body of St. Louis 
94.18 	County may impose a mortgage registry and deed tax.
94.19 	(b) The rate of the mortgage registry tax equals .0001 of the principal.
94.20 	(c) The rate of the deed tax equals .0001 of the amount.
94.21 		Subd. 2.General law provisions apply. The taxes under this section apply to 
94.22 	the same base and must be imposed, collected, administered, and enforced in the same 
94.23 	manner as provided under chapter 287 for the state mortgage registry and deed taxes. 
94.24 	All the provisions of chapter 287 apply to these taxes, except the rate is as specified in 
94.25 	subdivision 1, the term "St. Louis County" must be substituted for "the state," and the 
94.26 	revenue must be deposited as provided in subdivision 3.
94.27 		Subd. 3.Deposit of revenues. All revenues from the tax are for the use of the 
94.28 	St. Louis County Board of Commissioners and must be deposited in the county's 
94.29 	environmental response fund under section 383C.799.
94.30 		Subd. 4.Initial implementation. Documents presented for recording within 60 
94.31 	days after the date of imposition of the tax by the county that are acknowledged, sworn to 
94.32 	before a notary, or certified before the imposition date, must not be rejected for failure to 
94.33 	include the tax imposed under this section.
95.1 		Subd. 5.Expiration. The authority to impose the tax under this section expires 
95.2 	January 1, 2013.

95.3 	Sec. 14. [383C.799] ENVIRONMENTAL RESPONSE FUND.
95.4 		Subdivision 1.Creation. An environmental response fund is created for the 
95.5 	purposes specified in this section. The taxes imposed under section 383C.798 must be 
95.6 	deposited in the fund. The Board of County Commissioners shall administer the fund 
95.7 	either as a county board or a housing and redevelopment authority.
95.8 		Subd. 2.Uses of fund. The fund created in subdivision 1 must be used for the 
95.9 	following purposes:
95.10 	(1) payment of one-half of the annual debt service on bonds issued by the 
95.11 	Duluth-North Shore Sanitary District, series 2002, to pay the cost of constructing the 
95.12 	sanitary sewer collection system, until those obligations have been paid, or $4,500,000 has 
95.13 	been provided for this purpose under this clause, whichever occurs first; money remaining 
95.14 	in the fund after payment of the annual debt service under this clause may be expended for 
95.15 	the purposes in clauses (2) to (5);
95.16 	(2) acquisition through purchase or condemnation of lands or property which are 
95.17 	polluted or contaminated with hazardous substances;
95.18 	(3) paying the costs associated with indemnifying or holding harmless the 
95.19 	entity taking title to lands or property from any liability arising out of the ownership, 
95.20 	remediation, or use of the land or property;
95.21 	(4) paying for the costs of remediating the acquired land or property; or
95.22 	(5) paying the costs associated with remediating lands or property which are polluted 
95.23 	or contaminated with hazardous substances.
95.24 		Subd. 3.Matching funds. In expending funds under this section, the county shall 
95.25 	seek matching funds from contamination cleanup funds administered by the commissioner 
95.26 	of the Department of Employment and Economic Development, the federal government, 
95.27 	the private sector, and any other source.
95.28 		Subd. 4.Bonds. The county may pledge the proceeds from the taxes imposed by 
95.29 	section 383C.798 to bonds issued under this section and chapters 462, 469, and 475. 
95.30 		Subd. 5.Land sales. Land or property acquired under this section may be resold 
95.31 	at fair market value. Proceeds from the sale of the land must be deposited in the 
95.32 	environmental response fund.

95.33 	Sec. 15. [383D.75] COUNTY DEED AND MORTGAGE TAX.
96.1 		Subdivision 1.Authority to impose; rate. (a) The governing body of Dakota 
96.2 	County may impose a mortgage registry and deed tax.
96.3 	(b) The rate of the mortgage registry tax equals .0001 of the principal.
96.4 	(c) The rate of the deed tax equals .0001 of the amount.
96.5 		Subd. 2.General law provisions apply. The taxes under this section apply to 
96.6 	the same base and must be imposed, collected, administered, and enforced in the same 
96.7 	manner as provided under chapter 287 for the state mortgage registry and deed taxes. 
96.8 	All the provisions of chapter 287 apply to these taxes, except the rate is as specified in 
96.9 	subdivision 1, the term "Dakota County" must be substituted for "the state," and the 
96.10 	revenue must be deposited as provided in subdivision 3.
96.11 		Subd. 3.Deposit of revenues. All revenues from the tax are for the use of 
96.12 	the Dakota County Board of Commissioners and must be deposited in the county's 
96.13 	environmental response fund under section  383D.76.
96.14 		Subd. 4.Initial implementation. Documents presented for recording within 60 
96.15 	days after the date of imposition of the tax by the county that are acknowledged, sworn to 
96.16 	before a notary, or certified before the imposition date, must not be rejected for failure to 
96.17 	include the tax imposed under this section.
96.18 		Subd. 5.Expiration. The authority to impose the tax under this section expires 
96.19 	January 1, 2013.

96.20 	Sec. 16. [383D.76] ENVIRONMENTAL RESPONSE FUND.
96.21 		Subdivision 1.Creation. An environmental response fund is created for the 
96.22 	purposes specified in this section. The taxes imposed under section 383D.75 must be 
96.23 	deposited in the fund. The Board of County Commissioners shall administer the fund 
96.24 	either as a county board or a housing and redevelopment authority.
96.25 		Subd. 2.Uses of fund. The fund created in subdivision 1 must be used for the 
96.26 	following purposes:
96.27 	(1) acquisition through purchase or condemnation of lands or property which are 
96.28 	polluted or contaminated with hazardous substances;
96.29 	(2) paying the costs associated with indemnifying or holding harmless the 
96.30 	entity taking title to lands or property from any liability arising out of the ownership, 
96.31 	remediation, or use of the land or property;
96.32 	(3) paying for the costs of remediating the acquired land or property; or
96.33 	(4) paying the costs associated with remediating lands or property which are polluted 
96.34 	or contaminated with hazardous substances.
97.1 		Subd. 3.Matching funds. In expending funds under this section, the county shall 
97.2 	seek matching funds from contamination cleanup funds administered by the commissioner 
97.3 	of the Department of Employment and Economic Development, the Metropolitan Council, 
97.4 	the federal government, the private sector, and any other source.
97.5 		Subd. 4.Bonds. The county may pledge the proceeds from the taxes imposed by 
97.6 	section  383D.75 to bonds issued under this chapter and chapters 462, 469, and 475. 
97.7 		Subd. 5.Land sales. Land or property acquired under this section may be resold 
97.8 	at fair market value. Proceeds from the sale of the land must be deposited in the 
97.9 	environmental response fund.

97.10 	Sec. 17. [383E.235] COUNTY DEED AND MORTGAGE TAX.
97.11 		Subdivision 1.Authority to impose; rate. (a) The governing body of Anoka 
97.12 	County may impose a mortgage registry and deed tax.
97.13 	(b) The rate of the mortgage registry tax equals .0001 of the principal.
97.14 	(c) The rate of the deed tax equals .0001 of the amount.
97.15 		Subd. 2.General law provisions apply. The taxes under this section apply to 
97.16 	the same base and must be imposed, collected, administered, and enforced in the same 
97.17 	manner as provided under chapter 287 for the state mortgage registry and deed taxes. 
97.18 	All the provisions of chapter 287 apply to these taxes, except the rate is as specified 
97.19 	in subdivision 1, the term "Anoka County" must be substituted for "the state," and the 
97.20 	revenue must be deposited as provided in subdivision 3.
97.21 		Subd. 3.Deposit of revenues. All revenues from the tax are for the use of the Anoka 
97.22 	County Board of Commissioners and must be deposited in the county's environmental 
97.23 	response fund under section 383E.236.
97.24 		Subd. 4.Initial implementation. Documents presented for recording within 60 
97.25 	days after the date of imposition of the tax by the county that are acknowledged, sworn to 
97.26 	before a notary, or certified before the imposition date, must not be rejected for failure to 
97.27 	include the tax imposed under this section.
97.28 		Subd. 5.Expiration. The authority to impose the tax under this section expires 
97.29 	January 1, 2013.

97.30 	Sec. 18. [383E.236] ENVIRONMENTAL RESPONSE FUND.
97.31 		Subdivision 1.Creation. An environmental response fund is created for the 
97.32 	purposes specified in this section. The taxes imposed under section 383E.235 must be 
97.33 	deposited in the fund. The Board of County Commissioners shall administer the fund 
97.34 	either as a county board or a housing and redevelopment authority.
98.1 		Subd. 2.Uses of fund. The fund created in subdivision 1 must be used for the 
98.2 	following purposes:
98.3 	(1) acquisition through purchase or condemnation of lands or property which are 
98.4 	polluted or contaminated with hazardous substances;
98.5 	(2) paying the costs associated with indemnifying or holding harmless the 
98.6 	entity taking title to lands or property from any liability arising out of the ownership, 
98.7 	remediation, or use of the land or property;
98.8 	(3) paying for the costs of remediating the acquired land or property; or
98.9 	(4) paying the costs associated with remediating lands or property which are polluted 
98.10 	or contaminated with hazardous substances.
98.11 		Subd. 3.Matching funds. In expending funds under this section, the county shall 
98.12 	seek matching funds from contamination cleanup funds administered by the commissioner 
98.13 	of the Department of Employment and Economic Development, the Metropolitan Council, 
98.14 	the federal government, the private sector, and any other source.
98.15 		Subd. 4.Bonds. The county may pledge the proceeds from the taxes imposed by 
98.16 	section 383E.235 to bonds issued under this section and chapters 462, 469, and 475. 
98.17 		Subd. 5.Land sales. Land or property acquired under this section may be resold 
98.18 	at fair market value. Proceeds from the sale of the land must be deposited in the 
98.19 	environmental response fund.
98.20 		Subd. 6.DOT assistance. The commissioner of transportation shall collaborate with 
98.21 	the county and any affected municipality by providing technical assistance and support in 
98.22 	cleaning up a contaminated site related to a trunk highway or railroad improvement.

98.23 	ARTICLE 8
98.24 	MINERALS; AGGREGATE

98.25 	Section 1. Minnesota Statutes 2006, section 298.22, subdivision 5a, as added by Laws 
98.26 	2008, chapter 154, article 8, section 3, is amended to read:
98.27 		Subd. 5a. Forest trust. The commissioner, upon the affirmative vote of a majority 
98.28 	of the members of the board, may purchase forest lands in the taconite assistance area 
98.29 	defined in under section 273.1341 with funds specifically authorized for the purchase. The 
98.30 	acquired forest lands must be held in trust for the benefit of the citizens of the taconite 
98.31 	assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands shall be 
98.32 	managed and developed for recreation and economic development purposes. The board 
98.33 	may sell forest lands purchased under this subdivision if it finds that the sale advances the 
98.34 	purposes of the trust. Proceeds derived from the management or sale of the lands and from 
98.35 	the sale of timber or removal of gravel or other minerals from these forest lands shall be 
99.1 	deposited into an Iron Range Miners' Memorial Forest account that is established within 
99.2 	the state financial accounts. Funds may be expended from the account upon approval of a 
99.3 	majority of the members of the board to purchase, manage, administer, convey interests 
99.4 	in, and improve the forest lands. By majority vote of the members of the board, money in 
99.5 	the Iron Range Miners' Memorial Forest account may be transferred into the corpus of the 
99.6 	Douglas J. Johnson economic protection trust fund established under sections 298.291
99.7 	to 298.294. The property acquired under the authority granted by this subdivision and 
99.8 	income derived from the property or the operation or management of the property are 
99.9 	exempt from taxation by the state or its political subdivisions. 

99.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

99.11 	Sec. 2. Minnesota Statutes 2007 Supplement, section 298.227, is amended to read:
99.12 	298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
99.13 	An amount equal to that distributed pursuant to each taconite producer's taxable 
99.14 	production and qualifying sales under section 298.28, subdivision 9a, shall be held by 
99.15 	the Iron Range Resources and Rehabilitation Board in a separate taconite economic 
99.16 	development fund for each taconite and direct reduced ore producer. Money from the 
99.17 	fund for each producer shall be released by the commissioner after review by a joint 
99.18 	committee consisting of an equal number of representatives of the salaried employees and 
99.19 	the nonsalaried production and maintenance employees of that producer. The District 11 
99.20 	director of the United States Steelworkers of America, on advice of each local employee 
99.21 	president, shall select the employee members. In nonorganized operations, the employee 
99.22 	committee shall be elected by the nonsalaried production and maintenance employees. 
99.23 	The review must be completed no later than six months after the producer presents a 
99.24 	proposal for expenditure of the funds to the committee. The funds held pursuant to this 
99.25 	section may be released only for acquisition of plant and stationary mining equipment and 
99.26 	facilities for the producer or for research and development in Minnesota on new mining, or 
99.27 	taconite, iron, or steel production technology, but only if the producer provides a matching 
99.28 	expenditure to be used for the same purpose of at least 50 percent of the distribution 
99.29 	based on 14.7 cents per ton beginning with distributions in 2002. Effective for proposals 
99.30 	for expenditures of money from the fund beginning May 26, 2007, the commissioner 
99.31 	may not release the funds before the next scheduled meeting of the board. If the board 
99.32 	rejects a proposed expenditure, the funds must be deposited in the Taconite Environmental 
99.33 	Protection Fund under sections 298.222 to 298.225. If a producer uses money which has 
99.34 	been released from the fund prior to May 26, 2007 to procure haulage trucks, mobile 
100.1 	equipment, or mining shovels, and the producer removes the piece of equipment from the 
100.2 	taconite tax relief area defined in section 273.134 within ten years from the date of receipt 
100.3 	of the money from the fund, a portion of the money granted from the fund must be repaid 
100.4 	to the taconite economic development fund. The portion of the money to be repaid is 100 
100.5 	percent of the grant if the equipment is removed from the taconite tax relief area within 12 
100.6 	months after receipt of the money from the fund, declining by ten percent for each of the 
100.7 	subsequent nine years during which the equipment remains within the taconite tax relief 
100.8 	area. If a taconite production facility is sold after operations at the facility had ceased, any 
100.9 	money remaining in the fund for the former producer may be released to the purchaser of 
100.10 	the facility on the terms otherwise applicable to the former producer under this section. If 
100.11 	a producer fails to provide matching funds for a proposed expenditure within six months 
100.12 	after the commissioner approves release of the funds, the funds are available for release to 
100.13 	another producer in proportion to the distribution provided and under the conditions of 
100.14 	this section. Any portion of the fund which is not released by the commissioner within 
100.15 	two years of its deposit in the fund shall be divided between the taconite environmental 
100.16 	protection fund created in section 298.223 and the Douglas J. Johnson economic protection 
100.17 	trust fund created in section 298.292 for placement in their respective special accounts. 
100.18 	Two-thirds of the unreleased funds shall be distributed to the taconite environmental 
100.19 	protection fund and one-third to the Douglas J. Johnson economic protection trust fund. 

100.20 	EFFECTIVE DATE. This section is effective for distributions in 2009.

100.21 	Sec. 3. Minnesota Statutes 2006, section 298.24, subdivision 1, as amended by Laws 
100.22 	2008, chapter 154, article 8, section 5, is amended to read:
100.23 		Subdivision 1. Imposed; calculation. (a) For concentrate produced in 2001, 2002, 
100.24 	and 2003, there is imposed upon taconite and iron sulphides, and upon the mining and 
100.25 	quarrying thereof, and upon the production of iron ore concentrate therefrom, and upon 
100.26 	the concentrate so produced, a tax of $2.103 per gross ton of merchantable iron ore 
100.27 	concentrate produced therefrom. For concentrates produced in 2005, the tax rate is the 
100.28 	same rate imposed for concentrates produced in 2004. 
100.29 	(b) For concentrates produced in 2006 and subsequent years, the tax rate shall be 
100.30 	equal to the preceding year's tax rate plus an amount equal to the preceding year's tax rate 
100.31 	multiplied by the percentage increase in the implicit price deflator from the fourth quarter 
100.32 	of the second preceding year to the fourth quarter of the preceding year. "Implicit price 
100.33 	deflator" means the implicit price deflator for the gross domestic product prepared by the 
100.34 	Bureau of Economic Analysis of the United States Department of Commerce. 
101.1 	(c) On concentrates produced in 1997 and thereafter, an additional tax is imposed 
101.2 	equal to three cents per gross ton of merchantable iron ore concentrate for each one 
101.3 	percent that the iron content of the product exceeds 72 percent, when dried at 212 degrees 
101.4 	Fahrenheit. 
101.5 	(d) The tax shall be imposed on the average of the production for the current year 
101.6 	and the previous two years. The rate of the tax imposed will be the current year's tax rate. 
101.7 	This clause shall not apply in the case of the closing of a taconite facility if the property 
101.8 	taxes on the facility would be higher if this clause and section 298.25 were not applicable. 
101.9 	(e) If the tax or any part of the tax imposed by this subdivision is held to be 
101.10 	unconstitutional, a tax of $2.103 per gross ton of merchantable iron ore concentrate 
101.11 	produced shall be imposed. 
101.12 	(f) Consistent with the intent of this subdivision to impose a tax based upon the 
101.13 	weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly 
101.14 	determine the weight of merchantable iron ore concentrate included in fluxed pellets by 
101.15 	subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic 
101.16 	flux additives included in the pellets from the weight of the pellets. For purposes of this 
101.17 	paragraph, "fluxed pellets" are pellets produced in a process in which limestone, dolomite, 
101.18 	olivine, or other basic flux additives are combined with merchantable iron ore concentrate. 
101.19 	No subtraction from the weight of the pellets shall be allowed for binders, mineral and 
101.20 	chemical additives other than basic flux additives, or moisture. 
101.21 	(g)(1) Notwithstanding any other provision of this subdivision, for the first two years 
101.22 	of a plant's commercial production of direct reduced ore from ore mined in this state, no 
101.23 	tax is imposed under this section. As used in this paragraph, "commercial production" is 
101.24 	production of more than 50,000 tons of direct reduced ore in the current year or in any 
101.25 	prior year, "noncommercial production" is production of 50,000 tons or less of direct 
101.26 	reduced ore in any year, and "direct reduced ore" is ore that results in a product that has an 
101.27 	iron content of at least 75 percent. For the third year of a plant's commercial production of 
101.28 	direct reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate 
101.29 	otherwise determined under this subdivision. For the fourth commercial production year, 
101.30 	the rate is 50 percent of the rate otherwise determined under this subdivision; for the fifth 
101.31 	commercial production year, the rate is 75 percent of the rate otherwise determined under 
101.32 	this subdivision; and for all subsequent commercial production years, the full rate is 
101.33 	imposed. 
101.34 	(2) Subject to clause (1), production of direct reduced ore in this state is subject to 
101.35 	the tax imposed by this section, but if that production is not produced by a producer 
101.36 	of taconite or iron sulfides, the production of taconite or iron sulfides consumed in the 
102.1 	production of direct reduced iron in this state is not subject to the tax imposed by this 
102.2 	section on taconite or iron sulfides. 
102.3 	(3) Notwithstanding any other provision of this subdivision, no tax is imposed 
102.4 	on direct reduced ore under this section during the facility's noncommercial production 
102.5 	of direct reduced ore. The taconite or iron sulphides consumed in the noncommercial 
102.6 	production of direct reduced ore is subject to the tax imposed by this section on taconite 
102.7 	and iron sulphides. Three-year average production of direct reduced ore does not 
102.8 	include production of direct reduced ore in any noncommercial year. Three-year average 
102.9 	production for a direct reduced ore facility that has noncommercial production is the 
102.10 	average of the commercial production of direct reduced ore for the current year and the 
102.11 	previous two commercial years. 
102.12 	(4) This paragraph applies only to plants for which all environmental permits have 
102.13 	been obtained and construction has begun before July 1, 2008. 

102.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

102.15 	Sec. 4. Minnesota Statutes 2006, section 298.28, subdivision 4, as amended by Laws 
102.16 	2008, chapter 154, article 8, section 7, is amended to read:
102.17 		Subd. 4. School districts. (a) 23.15 cents per taxable ton, plus the increase provided 
102.18 	in paragraph (d) must be allocated to qualifying school districts to be distributed, based 
102.19 	upon the certification of the commissioner of revenue, under paragraphs (b), (c), and (f). 
102.20 	(b) (i) 3.43 cents per taxable ton must be distributed to the school districts in which 
102.21 	the lands from which taconite was mined or quarried were located or within which the 
102.22 	concentrate was produced. The distribution must be based on the apportionment formula 
102.23 	prescribed in subdivision 2. 
102.24 	(ii) Four cents per taxable ton from each taconite facility must be distributed to 
102.25 	each affected school district for deposit in a fund dedicated to building maintenance 
102.26 	and repairs, as follows: 
102.27 	(1) proceeds from Keewatin Taconite or its successor are distributed to Independent 
102.28 	School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor 
102.29 	districts; 
102.30 	(2) proceeds from the Hibbing Taconite Company or its successor are distributed to 
102.31 	Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor 
102.32 	districts; 
102.33 	(3) proceeds from the Mittal Steel Company and Minntac or their successors are 
102.34 	distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia, 
102.35 	2711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts; 
103.1 	(4) proceeds from the Northshore Mining Company or its successor are distributed 
103.2 	to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior, 
103.3 	or their successor districts; and 
103.4 	(5) proceeds from United Taconite or its successor are distributed to Independent 
103.5 	School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their 
103.6 	successor districts. 
103.7 	Revenues that are required to be distributed to more than one district shall be 
103.8 	apportioned according to the number of pupil units identified in section 126C.05, 
103.9 	subdivision 1, enrolled in the second previous year. 
103.10 	(c)(i) 15.72 cents per taxable ton, less any amount distributed under paragraph (e), 
103.11 	shall be distributed to a group of school districts comprised of those school districts which 
103.12 	qualify as a tax relief area under section 273.134, paragraph (b), or in which there is a 
103.13 	qualifying municipality as defined by section 273.134, paragraph (a), in direct proportion 
103.14 	to school district indexes as follows: for each school district, its pupil units determined 
103.15 	under section 126C.05 for the prior school year shall be multiplied by the ratio of the 
103.16 	average adjusted net tax capacity per pupil unit for school districts receiving aid under 
103.17 	this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year 
103.18 	ending prior to distribution to the adjusted net tax capacity per pupil unit of the district. 
103.19 	Each district shall receive that portion of the distribution which its index bears to the sum 
103.20 	of the indices for all school districts that receive the distributions. 
103.21 	(ii) Notwithstanding clause (i), each school district that receives a distribution 
103.22 	under sections 298.018; 298.23 to 298.28, exclusive of any amount received under this 
103.23 	clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a tax on 
103.24 	severed mineral values after reduction for any portion distributed to cities and towns under 
103.25 	section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its levy 
103.26 	reduction under section 126C.48, subdivision 8, for the second year prior to the year of the 
103.27 	distribution shall receive a distribution equal to the difference; the amount necessary to 
103.28 	make this payment shall be derived from proportionate reductions in the initial distribution 
103.29 	to other school districts under clause (i). 
103.30 	(d) Any school district described in paragraph (c) where a levy increase pursuant to 
103.31 	section 126C.17, subdivision 9, was authorized by referendum for taxes payable in 2001, 
103.32 	shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 times the 
103.33 	pupil units identified in section 126C.05, subdivision 1, enrolled in the second previous 
103.34 	year or the 1983-1984 school year, whichever is greater, less the product of 1.8 percent 
103.35 	times the district's taxable net tax capacity in the second previous year. 
104.1 	If the total amount provided by paragraph (d) is insufficient to make the payments 
104.2 	herein required then the entitlement of $175 per pupil unit shall be reduced uniformly 
104.3 	so as not to exceed the funds available. Any amounts received by a qualifying school 
104.4 	district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general 
104.5 	education aid which the district receives pursuant to section 126C.13 or the permissible 
104.6 	levies of the district. Any amount remaining after the payments provided in this paragraph 
104.7 	shall be paid to the commissioner of Iron Range resources and rehabilitation who shall 
104.8 	deposit the same in the taconite environmental protection fund and the Douglas J. Johnson 
104.9 	economic protection trust fund as provided in subdivision 11. 
104.10 	Each district receiving money according to this paragraph shall reserve the lesser of 
104.11 	the amount received under this paragraph or $25 times the number of pupil units served 
104.12 	in the district. It may use the money for early childhood programs or for outcome-based 
104.13 	learning programs that enhance the academic quality of the district's curriculum. The 
104.14 	outcome-based learning programs must be approved by the commissioner of education. 
104.15 	(e) There shall be distributed to any school district the amount which the school 
104.16 	district was entitled to receive under section 298.32 in 1975. 
104.17 	(f) Four cents per taxable ton must be distributed to qualifying school districts 
104.18 	according to the distribution specified in paragraph (b), clause (ii), and two cents per 
104.19 	taxable ton must be distributed according to the distribution specified in paragraph (c). 
104.20 	These amounts are not subject to section sections 126C.21, subdivision 4, and126C.48, 
104.21 	subdivision 8. 

104.22 	EFFECTIVE DATE. This section is effective for distributions in 2009 and 
104.23 	thereafter.

104.24 	Sec. 5. Minnesota Statutes 2006, section 298.28, subdivision 9a, is amended to read:
104.25 		Subd. 9a.Taconite economic development fund. (a) 30.1 20 cents per ton for 
104.26 	distributions in 2002 and thereafter 2008, and ten cents per ton for distributions in 2009
104.27 	must be paid to the taconite economic development fund. No distribution shall be 
104.28 	made under this paragraph in 2004 2010 or any subsequent year in which total industry 
104.29 	production falls below 30 million tons. Distribution shall only be made to a taconite 
104.30 	producer's fund under section 298.227 if the producer timely pays its tax under section 
104.31 	298.24 by the dates provided under section 298.27, or pursuant to the due dates provided 
104.32 	by an administrative agreement with the commissioner. 
104.33 	(b) An amount equal to 50 percent of the tax under section 298.24 for concentrate 
104.34 	sold in the form of pellet chips and fines not exceeding 5/16 inch in size and not including 
104.35 	crushed pellets shall be paid to the taconite economic development fund in years prior 
105.1 	to 2010. The amount paid shall not exceed $700,000 annually for all companies. If the 
105.2 	initial amount to be paid to the fund exceeds this amount, each company's payment shall 
105.3 	be prorated so the total does not exceed $700,000. 

105.4 	Sec. 6. Minnesota Statutes 2006, section 298.28, subdivision 9d, as added by Laws 
105.5 	2008, chapter 154, article 8, section 9, is amended to read:
105.6 		Subd. 9d. Iron Range higher education account. Two Five cents per taxable ton 
105.7 	must be allocated to the Iron Range Resources and Rehabilitation Board to be deposited 
105.8 	in an Iron Range higher education account that is hereby created, to be used for higher 
105.9 	education programs conducted at educational institutions in the taconite assistance area 
105.10 	defined in section 273.1341. The Iron Range Higher Education committee under section 
105.11 	298.2214 and the Iron Range Resources and Rehabilitation Board must approve all 
105.12 	expenditures from the account. 

105.13 	EFFECTIVE DATE. This section is effective for production in 2007, distributions 
105.14 	in 2008, and thereafter.

105.15 	Sec. 7. Minnesota Statutes 2006, section 298.2961, subdivision 4, as amended by Laws 
105.16 	2008, chapter 154, article 8, section 13, is amended to read:
105.17 		Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions 
105.18 	under section 298.28, subdivision 9b, and to make grants or loans as provided in this 
105.19 	subdivision. Any grant or loan made under this subdivision must be approved by 
105.20 	a majority of the members of the Iron Range Resources and Rehabilitation Board, 
105.21 	established under section 298.22. 
105.22 	(b) Distributions received in calendar year 2005 are allocated to the city of Virginia 
105.23 	for improvements and repairs to the city's steam heating system. 
105.24 	(c) Distributions received in calendar year 2006 are allocated to a project of the 
105.25 	public utilities commissions of the cities of Hibbing and Virginia to convert their electrical 
105.26 	generating plants to the use of biomass products, such as wood. 
105.27 	(d) Distributions received in calendar year 2007 must be paid to the city of Tower to 
105.28 	be used for the East Two Rivers project in or near the city of Tower. 
105.29 	(e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution 
105.30 	must be paid to St. Louis County for deposit in its county road and bridge fund to be 
105.31 	used for relocation of St. Louis County Road 715, commonly referred to as Pike River 
105.32 	Road. The next $90,000 must be paid to Independent School District No. 2142, St. Louis 
105.33 	County, for a facilities study. The remainder of the 2008 distribution must be paid to St. 
105.34 	Louis County for a grant to the city of Virginia for connecting sewer and water lines to 
106.1 	the St. Louis County maintenance garage on Highway 135, further extending the lines to 
106.2 	interconnect with the city of Gilbert's sewer and water lines. All distributions received in 
106.3 	2009 and subsequent years are allocated for projects under section 298.223, subdivision 1. 

106.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

106.5 	Sec. 8. Minnesota Statutes 2006, section 298.75, subdivision 1, is amended to read:
106.6 		Subdivision 1.Definitions. Except as may otherwise be provided, the following 
106.7 	words, when used in this section, shall have the meanings herein ascribed to them.
106.8 	(1) "Aggregate material" shall mean nonmetallic natural mineral aggregate including, 
106.9 	but not limited to sand, silica sand, gravel, crushed rock, limestone, granite, and borrow, 
106.10 	but only if the borrow is transported on a public road, street, or highway. Aggregate 
106.11 	material shall not include dimension stone and dimension granite. Aggregate material 
106.12 	must be measured or weighed after it has been extracted from the pit, quarry, or deposit.
106.13 	(2) "Person" shall mean any individual, firm, partnership, corporation, organization, 
106.14 	trustee, association, or other entity.
106.15 	(3) "Operator" shall mean any person engaged in the business of removing aggregate 
106.16 	material from the surface or subsurface of the soil, for the purpose of sale, either directly 
106.17 	or indirectly, through the use of the aggregate material in a marketable product or service.
106.18 	(4) "Extraction site" shall mean a pit, quarry, or deposit containing aggregate 
106.19 	material and any contiguous property to the pit, quarry, or deposit which is used by the 
106.20 	operator for stockpiling the aggregate material.
106.21 	(5) "Importer" shall mean any person who buys aggregate material produced
106.22 	excavated from a county not listed in paragraph (6) or another state and causes the 
106.23 	aggregate material to be imported into a county in this state which imposes a tax on 
106.24 	aggregate material.
106.25 	(6) "County" shall mean the counties of Pope, Stearns, Benton, Sherburne, Carver, 
106.26 	Scott, Dakota, Le Sueur, Kittson, Marshall, Pennington, Red Lake, Polk, Norman, 
106.27 	Mahnomen, Clay, Becker, Carlton, St. Louis, Rock, Murray, Wilkin, Big Stone, Sibley, 
106.28 	Hennepin, Washington, Chisago, and Ramsey. County also means any other county whose 
106.29 	board has voted after a public hearing to impose the tax under this section and has notified 
106.30 	the commissioner of revenue of the imposition of the tax.
106.31 	(7) "Borrow" shall mean granular borrow, consisting of durable particles of gravel 
106.32 	and sand, crushed quarry or mine rock, crushed gravel or stone, or any combination 
106.33 	thereof, the ratio of the portion passing the (#200) sieve divided by the portion passing the 
106.34 	(1 inch) sieve may not exceed 20 percent by mass.

107.1 	EFFECTIVE DATE. This section is effective January 1, 2009.

107.2 	Sec. 9. Minnesota Statutes 2006, section 298.75, subdivision 2, is amended to read:
107.3 		Subd. 2.Tax imposed. (a) A county that imposes the aggregate production tax shall 
107.4 	impose upon every importer and operator a production tax up to ten centsof 21.5 cents per 
107.5 	cubic yard or up to seven15 cents per ton of aggregate material removedexcavated in the 
107.6 	county except that the county board may decide not to impose this tax if it determines 
107.7 	that in the previous year operators removed less than 20,000 tons or 14,000 cubic yards of 
107.8 	aggregate material from that county. The tax shall not be imposed on aggregate material 
107.9 	produced excavated in the county whenuntil the aggregate material is transported from 
107.10 	the extraction site or sold, whichever occurs first. When aggregate material is stored in a 
107.11 	stockpile within the state of Minnesota and a public highway, road or street is not used 
107.12 	for transporting the aggregate material, the tax shall not be imposed until either when the 
107.13 	aggregate material is sold, or when it is transported from the stockpile site, or when it is 
107.14 	used from the stockpile, whichever occurs first.
107.15 	(b) A county that imposes the aggregate production tax under paragraph (a) shall 
107.16 	impose upon every importer a production tax of 21.5 cents per cubic yard or 15 cents per 
107.17 	ton of aggregate material imported into the county. The tax shall be imposed when the 
107.18 	aggregate material is imported from the extraction site or sold. When imported aggregate 
107.19 	material is stored in a stockpile within the state of Minnesota and a public highway, road, 
107.20 	or street is not used for transporting the aggregate material, the tax shall be imposed either 
107.21 	when the aggregate material is sold, when it is transported from the stockpile site, or when 
107.22 	it is used from the stockpile, whichever occurs first. The tax shall be imposed on an 
107.23 	importer when the aggregate material is imported into the county that imposes the tax.
107.24 	(c) If the aggregate material is transported directly from the extraction site to a 
107.25 	waterway, railway, or another mode of transportation other than a highway, road or street, 
107.26 	the tax imposed by this section shall be apportioned equally between the county where the 
107.27 	aggregate material is extracted and the county to which the aggregate material is originally 
107.28 	transported. If that destination is not located in Minnesota, then the county where the 
107.29 	aggregate material was extracted shall receive all of the proceeds of the tax.
107.30 	(d) A county, city, or town that receives revenue under this section is prohibited 
107.31 	from imposing any additional host community fees on aggregate production within that 
107.32 	county, city, or town.

107.33 	EFFECTIVE DATE. This section is effective January 1, 2009.

107.34 	Sec. 10. Minnesota Statutes 2006, section 298.75, subdivision 6, is amended to read:
108.1 		Subd. 6.Penalties; removal of aggregate if previous tax not paid; false report.
 108.2 	It is a misdemeanor for any operator or importer to remove aggregate material from a 
108.3 	pit, quarry, or deposit or for any importer to import aggregate material unless all taxes 
108.4 	due under this section for theall previous reporting periodperiods have been paid or 
108.5 	objections thereto have been filed pursuant to subdivision 4.
108.6 	It is a misdemeanor for the operator or importer who is required to file a report to file 
108.7 	a false report with intent to evade the tax.

108.8 	EFFECTIVE DATE. This section is effective January 1, 2009.

108.9 	Sec. 11. Minnesota Statutes 2006, section 298.75, subdivision 7, is amended to read:
108.10 		Subd. 7.Proceeds of taxes. (a) All money collected as taxes under this section 
108.11 	shall be deposited in the county treasury and credited as follows, for expenditure by the 
108.12 	county board: according to this subdivision.
108.13 	(b) The county auditor may retain an annual administrative fee of up to five percent 
108.14 	of the total taxes collected in any year.
108.15 	(c) The balance of the taxes, after any deduction under paragraph (b), shall be 
108.16 	credited as follows:
108.17 	(a) Sixty(1) 42.5 percent to the county road and bridge fund for expenditure for the 
108.18 	maintenance, construction and reconstruction of roads, highways and bridges;
108.19 	(b) Thirty(2) 42.5 percent to the road and bridge fund of those towns as determined 
108.20 	by the county board and to the general fund or other designated fund of those cities as 
108.21 	determined by the county board of the city or town in which the mine is located, or to the 
108.22 	county, if the mine is located in an unorganized town, to be expended for maintenance, 
108.23 	construction and reconstruction of roads, highways and bridges; and
108.24 	(c) Ten(3) 15 percent to a special reserve fund which is hereby established, for 
108.25 	expenditure for the restoration of abandoned pits, quarries, or deposits located upon public 
108.26 	and tax forfeited lands within the county.
108.27 	If there are no abandoned pits, quarries or deposits located upon public or tax 
108.28 	forfeited lands within the county, this portion of the tax shall be deposited in the county 
108.29 	road and bridge fund for expenditure for the maintenance, construction and reconstruction 
108.30 	of roads, highways and bridges used for any other unmet reclamation need or for 
108.31 	conservation or other environmental needs.

108.32 	EFFECTIVE DATE. This section is effective January 1, 2009.

109.1 	Sec. 12. Laws 2008, chapter 154, article 8, section 14, the effective date, is amended to 
109.2 	read:

109.3 	EFFECTIVE DATE. This section is effective for distributions made in 2008 and 
109.4 	thereafter 2007.

109.5 	Sec. 13. ELECTRIC GENERATING PLANTS IN TACONITE TAX RELIEF 
109.6 	AREAS.
 109.7 	For purposes of definitions of "taconite tax relief area" and "taconite assistance area" 
109.8 	in Minnesota Statutes, sections 273.134, 273.1341, and related laws, the elimination 
109.9 	of the property tax exemption for certain electric generating plants under Laws 2008, 
109.10 	chapter 154, article 8, section 6, does not change the status of any electric generating plant 
109.11 	qualifying as a taconite facility.

109.12 	ARTICLE 9
109.13 	LOCAL DEVELOPMENT

109.14 	Section 1. [116J.8732] SEED CAPITAL INVESTMENT CREDIT; 
109.15 	COMMISSIONER'S RESPONSIBILITIES.
109.16 		Subdivision 1.Scope. This section establishes rules that businesses must satisfy to 
109.17 	qualify for the seed capital investment credit under section 290.06, subdivision 34, and the 
109.18 	commissioner's responsibility for certifying the qualifying businesses. 
109.19 		Subd. 2.Definitions. (a) For purposes of this section and section 290.06, 
109.20 	subdivision 34, the following terms have the meanings given.
109.21 	(b) "Border city" means a city qualifying to designate a border city development 
109.22 	zone under section 469.1731.
109.23 	(c) "Pass-through entity" means a corporation that for the applicable tax year is 
109.24 	treated as an S corporation or a general partnership, limited partnership, limited liability 
109.25 	partnership, trust, or limited liability company and which for the applicable taxable year is 
109.26 	not taxed as a corporation under chapter 290.
109.27 	(d) "Primary sector business" means a qualified business that through the 
109.28 	employment of knowledge or labor adds value to a product, process, or service and 
109.29 	increases revenues to a Minnesota business generated by sales of products or services to 
109.30 	customers outside of the state or increases revenues to a qualified business the customers 
109.31 	of which previously were unable to acquire, or had limited availability of the product or 
109.32 	service from a Minnesota provider.
110.1 	(e) "Qualified business" means a business certified by the commissioner as meeting 
110.2 	the requirements of subdivision 3.
110.3 		Subd. 3.Qualified business. (a) The commissioner shall certify whether a business 
110.4 	that has requested to become a qualified business meets the requirements of paragraph (b).
110.5 	(b) For purposes of this section, a qualified business must be a primary sector 
110.6 	business, other than a real estate investment trust, that:
110.7 	(1) is incorporated or its satellite operation is incorporated as a for-profit corporation 
110.8 	or is a partnership, limited partnership, limited liability company, limited liability 
110.9 	partnership, or joint venture;
110.10 	(2) is in compliance with the requirements for filings with the commissioner of 
110.11 	commerce under the securities laws of this state;
110.12 	(3) has Minnesota residents as a majority of its employees in its principal office or 
110.13 	the satellite operation, which is located in a border city;
110.14 	(4) has its principal office in a border city and has the majority of its business 
110.15 	activity performed in a border city, except sales activity, or has a significant operation in 
110.16 	a border city that has or is projected to have more than ten employees or $150,000 of 
110.17 	sales annually; and
110.18 	(5) relies on innovation, research, or the development of new products and processes 
110.19 	in its plans for growth and profitability.
110.20 	(c) The commissioner shall establish the necessary forms and procedures for 
110.21 	certifying qualified businesses.
110.22 	(d) A qualified business may apply to the commissioner for a recertification. Only 
110.23 	one recertification is available to a qualified business. The application for recertification 
110.24 	must be filed with the commissioner within 90 days before the original certification 
110.25 	expiration date. The recertification issued by the director must comply with the provisions 
110.26 	of paragraph (e).
110.27 	(e) The commissioner shall issue a certification letter to a business the commissioner 
110.28 	determines is a qualified business. The certification letter must include:
110.29 	(1) the certification effective date; and
110.30 	(2) the certification expiration date, which may not be more than four years from the 
110.31 	certification effective date.
110.32 		Subd. 4.Seed capital investment credit reporting. Within 30 days after the date 
110.33 	that an investment in a qualified business is purchased, the qualified business shall file with 
110.34 	the commissioner and the commissioner of revenue and provide to the investor completed 
110.35 	forms prescribed by the commissioner of revenue that show as to each investment in the 
110.36 	qualified business the following:
111.1 	(1) the name, address, and Social Security number of the taxpayer who made the 
111.2 	investment; and
111.3 	(2) the dollar amount paid for the investment by the taxpayer.

111.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

111.5 	Sec. 2. Minnesota Statutes 2006, section 116J.993, subdivision 3, is amended to read:
111.6 		Subd. 3.Business subsidy. "Business subsidy" or "subsidy" means a state or local 
111.7 	government agency grant, contribution of personal property, real property, infrastructure, 
111.8 	the principal amount of a loan at rates below those commercially available to the recipient, 
111.9 	any reduction or deferral of any tax or any fee, any guarantee of any payment under any 
111.10 	loan, lease, or other obligation, or any preferential use of government facilities given 
111.11 	to a business.
111.12 	The following forms of financial assistance are not a business subsidy:
111.13 	(1) a business subsidy of less than $25,000 $200,000;
111.14 	(2) assistance that is generally available to all businesses or to a general class of 
111.15 	similar businesses, such as a line of business, size, location, or similar general criteria;
111.16 	(3) public improvements to buildings or lands owned by the state or local 
111.17 	government that serve a public purpose and do not principally benefit a single business or 
111.18 	defined group of businesses at the time the improvements are made;
111.19 	(4) redevelopment property polluted by contaminants as defined in section 116J.552, 
111.20 	subdivision 3; 
111.21 	(5) assistance provided for the sole purpose of renovating old or decaying building 
111.22 	stock or bringing it up to code and assistance provided for designated historic preservation 
111.23 	districts, provided that the assistance is equal to or less than 50 percent of the total cost;
111.24 	(6) assistance to provide job readiness and training services if the sole purpose of 
111.25 	the assistance is to provide those services;
111.26 	(7) assistance for housing;
111.27 	(8) assistance for pollution control or abatement, including assistance for a tax 
111.28 	increment financing hazardous substance subdistrict as defined under section 469.174, 
111.29 	subdivision 23; 
111.30 	(9) assistance for energy conservation;
111.31 	(10) tax reductions resulting from conformity with federal tax law;
111.32 	(11) workers' compensation and unemployment insurance;
111.33 	(12) benefits derived from regulation;
111.34 	(13) indirect benefits derived from assistance to educational institutions;
112.1 	(14) funds from bonds allocated under chapter 474A, bonds issued to refund 
112.2 	outstanding bonds, and bonds issued for the benefit of an organization described in section 
112.3 	501(c)(3) of the Internal Revenue Code of 1986, as amended through December 31, 1999;
112.4 	(15) assistance for a collaboration between a Minnesota higher education institution 
112.5 	and a business;
112.6 	(16) assistance for a tax increment financing soils condition district as defined under 
112.7 	section 469.174, subdivision 19; 
112.8 	(17) redevelopment when the recipient's investment in the purchase of the site and in 
112.9 	site preparation is 70 percent or more of the assessor's current year's estimated market 
112.10 	value;
112.11 	(18) general changes in tax increment financing law and other general tax law 
112.12 	changes of a principally technical nature;
112.13 	(19) federal assistance until the assistance has been repaid to, and reinvested by, the 
112.14 	state or local government agency;
112.15 	(20) funds from dock and wharf bonds issued by a seaway port authority;
112.16 	(21) business loans and loan guarantees of $75,000$200,000 or less; 
112.17 	(22) federal loan funds provided through the United States Department of 
112.18 	Commerce, Economic Development Administration; and
112.19 	(23) property tax abatements granted under section 469.1813 to property that is 
112.20 	subject to valuation under Minnesota Rules, chapter 8100.

112.21 	Sec. 3. Minnesota Statutes 2006, section 116J.994, subdivision 2, is amended to read:
112.22 		Subd. 2.Developing a set of criteria. A business subsidy may not be granted until 
112.23 	the grantor has adopted criteria after a public hearing for awarding business subsidies 
112.24 	that comply with this section. The criteria may not be adopted on a case-by-case basis. 
112.25 	The criteria must set specific minimum requirements that recipients must meet in order 
112.26 	to be eligible to receive business subsidies. The criteria must include a specific wage 
112.27 	floor for the wages to be paid for the jobs created. The wage floor may be stated as a 
112.28 	specific dollar amount or may be stated as a formula that will generate a specific dollar 
112.29 	amount. A grantor may deviate from its criteria by documenting in writing the reason 
112.30 	for the deviation and attaching a copy of the document to its next annual report to the 
112.31 	department. The commissioner of employment and economic development may assist 
112.32 	local government agencies in developing criteria. A copy of the criteria must be submitted 
112.33 	to the Department of Employment and Economic Development along with the first annual 
112.34 	report following the enactment of this section or with the first annual report after it has 
112.35 	adopted criteria, whichever is earlier. Notwithstanding section 116J.993, subdivision 3, 
113.1 	clauses (1) and (21), for the purpose of this subdivision, "business subsidies" as defined 
113.2 	under section 116J.993 includes the following forms of financial assistance:
113.3 	(1) a business subsidy of $25,000 or more; and
113.4 	(2) business loans and guarantees of $75,000 or more.

113.5 	Sec. 4. Minnesota Statutes 2006, section 116J.994, subdivision 5, is amended to read:
113.6 		Subd. 5.Public notice and hearing. (a) Before granting a business subsidy that 
113.7 	exceeds $500,000 for a state government grantor and $100,000$200,000 for a local 
113.8 	government grantor, the grantor must provide public notice and a hearing on the subsidy. 
113.9 	A public hearing and notice under this subdivision is not required if a hearing and notice 
113.10 	on the subsidy is otherwise required by law.
113.11 	(b) Public notice of a proposed business subsidy under this subdivision by a state 
113.12 	government grantor, other than the Iron Range Resources and Rehabilitation Board, must 
113.13 	be published in the State Register. Public notice of a proposed business subsidy under this 
113.14 	subdivision by a local government grantor or the Iron Range Resources and Rehabilitation 
113.15 	Board must be published in a local newspaper of general circulation. The public notice 
113.16 	must identify the location at which information about the business subsidy, including a 
113.17 	summary of the terms of the subsidy, is available. Published notice should be sufficiently 
113.18 	conspicuous in size and placement to distinguish the notice from the surrounding text. 
113.19 	The grantor must make the information available in printed paper copies and, if possible, 
113.20 	on the Internet. The government agency must provide at least a ten-day notice for the 
113.21 	public hearing.
113.22 	(c) The public notice must include the date, time, and place of the hearing.
113.23 	(d) The public hearing by a state government grantor other than the Iron Range 
113.24 	Resources and Rehabilitation Board must be held in St. Paul.
113.25 	(e) If more than one nonstate grantor provides a business subsidy to the same 
113.26 	recipient, the nonstate grantors may designate one nonstate grantor to hold a single 
113.27 	public hearing regarding the business subsidies provided by all nonstate grantors. For 
113.28 	the purposes of this paragraph, "nonstate grantor" includes the iron range resources and 
113.29 	rehabilitation board.
113.30 	(f) The public notice of any public meeting about a business subsidy agreement, 
113.31 	including those required by this subdivision and by subdivision 4, must include notice that 
113.32 	a person with residence in or the owner of taxable property in the granting jurisdiction 
113.33 	may file a written complaint with the grantor if the grantor fails to comply with sections 
113.34 	116J.993 to 116J.995, and that no action may be filed against the grantor for the failure to 
113.35 	comply unless a written complaint is filed.

114.1 	Sec. 5. Minnesota Statutes 2006, section 290.06, is amended by adding a subdivision 
114.2 	to read:
114.3 		Subd. 34.Seed capital investment credit. (a) An individual, estate, or trust is 
114.4 	allowed a credit against the tax imposed by this chapter for investments in a qualifying 
114.5 	business certified under section 116J.8732, subdivision 3. The credit equals 45 percent 
114.6 	of the amount invested by the taxpayer in qualified businesses during the taxable year. 
114.7 	The credit must not exceed $112,500 for each taxable year. 
114.8 	(b) A pass-through entity that invests in a qualified business must be considered to 
114.9 	be the taxpayer for purposes of the investment limitations in this subdivision and the 
114.10 	amount of the credit allowed with respect to a pass-through entity's investment in a 
114.11 	qualified business must be determined at the pass-through entity level. The amount of the 
114.12 	total credit determined at the pass-through entity level must be allowed to the members in 
114.13 	proportion to their respective interests in the pass-through entity.
114.14 	(c) An investment made in a qualified business from the assets of a retirement 
114.15 	plan is deemed to be the retirement plan participant's investment for the purpose of this 
114.16 	subdivision if a separate account is maintained for the plan participant and the participant 
114.17 	directly controls where the account assets are invested.
114.18 	(d) The investment must be made on or after the certification effective date and 
114.19 	must be at risk in the business to be eligible for the tax credit under this subdivision. 
114.20 	An investment for which a credit is received under this subdivision must remain in the 
114.21 	qualified business for at least three years. Investments placed in escrow do not qualify 
114.22 	for the credit. 
114.23 	(e) The entire amount of an investment for which a credit is claimed under this 
114.24 	subdivision must be expended by the qualified business for plant, equipment, research and 
114.25 	development, marketing and sales activity, or working capital for the qualified business. 
114.26 	(f) A taxpayer who owns a controlling interest in the qualified business or who 
114.27 	receives more than 50 percent of the taxpayer's gross annual income from the qualified 
114.28 	business is not entitled to a credit under this subdivision. A member of the immediate 
114.29 	family of a taxpayer disqualified by this subdivision is not entitled to the credit under this 
114.30 	subdivision. For purposes of this subdivision, "immediate family" means the taxpayer's 
114.31 	spouse, parent, sibling, or child or the spouse of any such person.
114.32 	(g) The commissioner may disallow any credit otherwise allowed under this 
114.33 	subdivision if any representation by a business in the application for certification as a 
114.34 	qualified business proves to be false or if the taxpayer or qualified business fails to satisfy 
114.35 	any conditions under this subdivision or section 116J.8732 or any conditions consistent 
114.36 	with those requirements otherwise determined by the commissioner. The commissioner 
115.1 	has four years after the due date of the return or after the return was filed, whichever 
115.2 	period expires later, to audit the credit and assess additional tax that may be found due 
115.3 	to failure to comply with the provisions of this subdivision and section 116J.8732. The 
115.4 	amount of any credit disallowed by the commissioner that reduced the taxpayer's income 
115.5 	tax liability for any or all applicable tax years, plus penalty and interest as provided under 
115.6 	chapter 289A, must be paid by the taxpayer. 
115.7 	(h) If the amount of the credit under this subdivision for any taxable year exceeds 
115.8 	the limitations under paragraph (a), clause (2), the excess is a credit carryover to each of 
115.9 	the four succeeding taxable years. The entire amount of the excess unused credit for 
115.10 	the taxable year must be carried first to the earliest of the taxable years to which the 
115.11 	credit may be carried. The amount of the unused credit that may be added under this 
115.12 	paragraph may not exceed the taxpayer's liability for tax, less the credit for the taxable 
115.13 	year. Each year, the aggregate amount of seed capital investment tax credit allowed for 
115.14 	investments under this subdivision is limited to allocations that a border city has available 
115.15 	for tax reductions in border city enterprise zones under section 469.170. The city must 
115.16 	annually notify the commissioner of the amount of its section 469.170 allocations that it 
115.17 	wishes to use to provide credits under this paragraph and the commissioner, after verifying 
115.18 	the available allocation, shall implement the limit under this paragraph. If investments 
115.19 	in qualified businesses reported to the commissioner exceed the limit on credits for 
115.20 	investments imposed by this subdivision, the credit must be allowed to taxpayers in the 
115.21 	chronological order of their investments in qualified businesses as determined from the 
115.22 	forms filed under section 116J.8732.

115.23 	EFFECTIVE DATE. This section is effective July 1, 2008, for taxable years 
115.24 	beginning after December 31, 2007, and only applies to investments made after the 
115.25 	qualified business has been certified by the commissioner of employment and economic 
115.26 	development.

115.27 	Sec. 6. Minnesota Statutes 2006, section 290.06, is amended by adding a subdivision 
115.28 	to read:
115.29 		Subd. 35.Renaissance zone; historic rehabilitation credit. (a) A taxpayer who 
115.30 	incurs costs that are eligible for a credit under section 47 of the Internal Revenue Code 
115.31 	for the rehabilitation of property in a renaissance zone is allowed a credit against the tax 
115.32 	imposed under this chapter, including the taxes under sections 290.091 and 290.0922, 
115.33 	equal to 25 percent of the federal credit for the taxable year. As used in this subdivision, 
115.34 	a "renaissance zone" is the area of the campus of the former state regional treatment 
116.1 	center in the city of Fergus Falls, including five buildings and associated land that were 
116.2 	acquired by the city prior to January 1, 2007.
116.3 	(b) If the amount of the credit under this subdivision exceeds the tax liability under 
116.4 	this chapter for the year in which the cost is incurred, the amount that exceeds the tax 
116.5 	liability may be carried back to any of the three preceding taxable years or carried forward 
116.6 	to each of the ten taxable years succeeding the taxable year in which the expense was 
116.7 	incurred. The entire amount of the credit must be carried to the earliest taxable year to 
116.8 	which the amount may be carried. The unused portion of the credit must be carried to 
116.9 	the following taxable year.

116.10 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
116.11 	December 31, 2008.

116.12 	Sec. 7. Minnesota Statutes 2006, section 383E.20, is amended to read:
116.13 	383E.20 BONDING FOR COUNTY LIBRARY BUILDINGS.
116.14 	The Anoka County Board may, by resolution adopted by a four-sevenths vote, 
116.15 	issue and sell general obligation bonds of the county in the manner provided in chapter 
116.16 	475 to acquire, better, and construct county library buildings. The bonds shall not be 
116.17 	subject to the requirements of sections 475.57 to 475.59. The maturity years and amounts 
116.18 	and interest rates of each series of bonds shall be fixed so that the maximum amount of 
116.19 	principal and interest to become due in any year, on the bonds of that series and of all 
116.20 	outstanding series issued by or for the purposes of libraries, shall not exceed an amount 
116.21 	equal to the lesser of (i) .01 percent of the taxable market value of all taxable property in 
116.22 	the county, excluding any taxable property taxed by any city for the support of any free 
116.23 	public library, or (ii) $1,250,000. When the tax levy authorized in this section is collected, 
116.24 	it shall be appropriated and credited to a debt service fund for the bonds. The tax levy for 
116.25 	the debt service fund under section 475.61 shall be reduced by the amount available or 
116.26 	reasonably anticipated to be available in the fund to make payments otherwise payable 
116.27 	from the levy pursuant to section 475.61.

116.28 	EFFECTIVE DATE. This section is effective the day after the governing body of 
116.29 	Anoka County and its chief clerical officer timely complete their compliance with section 
116.30 	645.021, subdivisions 2 and 3.

116.31 	Sec. 8. Minnesota Statutes 2006, section 469.312, is amended by adding a subdivision 
116.32 	to read:
117.1 		Subd. 6.Termination of designation of qualified business. No person will be 
117.2 	deemed to be a qualified business eligible for the benefits provided in sections 469.310 
117.3 	to 469.320 unless the person has entered into a business subsidy agreement with a local 
117.4 	government unit as provided in section 469.310, subdivision 11, prior to May 1, 2008.

117.5 	Sec. 9. Minnesota Statutes 2006, section 473.39, is amended by adding a subdivision 
117.6 	to read:
117.7 		Subd. 1n.Obligations. After May 1, 2008, in addition to other authority in this 
117.8 	section, the council may issue certificates of indebtedness, bonds, or other obligations 
117.9 	under this section in an amount not exceeding $33,600,000 for capital expenditures as 
117.10 	prescribed in the council's regional transit master plan and transit capital improvement 
117.11 	program and for related costs, including the costs of issuance and sale of the obligations.

117.12 	EFFECTIVE DATE. This section applies in the counties of Anoka, Carver, 
117.13 	Dakota, Hennepin, Ramsey, Scott, and Washington, and is effective the day following 
117.14 	final enactment.

117.15 	Sec. 10. Minnesota Statutes 2006, section 473F.08, is amended by adding a subdivision 
117.16 	to read:
117.17 		Subd. 3c.Bloomington computation. Effective for property taxes payable in 2010 
117.18 	and thereafter, if the city of Bloomington has imposed the tax authorized under section 
117.19 	18, subdivision 3, by September 15 of the levy year preceding the taxes payable year, the 
117.20 	Hennepin County auditor shall determine the amount of the levy generated by the property 
117.21 	included in phase II of the Mall of America project. The Hennepin County auditor shall 
117.22 	distribute to the city of Bloomington the areawide portion of the levy computed under 
117.23 	this subdivision at the same time that payments are made to the other counties under 
117.24 	subdivision 7a. The city must use the money so distributed to finance a parking facility 
117.25 	for phase II of the Mall of America project. The additional distribution to the city of 
117.26 	Bloomington under this subdivision terminates effective for the first taxes payable year 
117.27 	after the cost of the parking facility has been paid.

117.28 	Sec. 11. Laws 1995, chapter 264, article 5, section 46, subdivision 2, is amended to 
117.29 	read:
117.30 		Subd. 2. Limitation on use of tax increments. (a) All revenues derived from tax 
117.31 	increments must be used in accordance with the housing replacement district plan. The 
117.32 	revenues must be used solely to pay the costs of site acquisition, relocation, demolition 
117.33 	of existing structures, site preparation, and pollution abatement on parcels identified in 
118.1 	the housing replacement district plan, as well as public improvements and administrative 
118.2 	costs directly related to those parcels.
118.3 	(b) Notwithstanding paragraph (a), the city of Minneapolis and the city of Crystal 
118.4 	may use revenues derived from tax increments from its housing replacement district for 
118.5 	activities related to parcels not identified in the housing replacement plan, but which would 
118.6 	qualify for inclusion under section 45, subdivision 1, paragraph (b), clauses (1) through (3).

118.7 	EFFECTIVE DATE. This section applies to revenues from the housing replacement 
118.8 	districts, regardless of when they were received, and is effective the day following final 
118.9 	enactment and for the city of Minneapolis, upon compliance by the governing body of 
118.10 	the city of Minneapolis with Minnesota Statutes, section 645.021, subdivision 3, and, for 
118.11 	the city of Crystal, upon compliance by the governing body of the city of Crystal with 
118.12 	Minnesota Statutes, section 645.021, subdivision 3.

118.13 	Sec. 12. Laws 2003, chapter 127, article 10, section 31, subdivision 1, is amended to 
118.14 	read:
118.15 		Subdivision 1. District extension. (a) The governing body of the city of Hopkins 
118.16 	may elect to extend the duration of its redevelopment tax increment financing district 
118.17 	2-11 by up to four additional years. 
118.18 	(b) Notwithstanding any law to the contrary, effective upon approval of this 
118.19 	subdivision, no increments may be spent on activities located outside of the area of the 
118.20 	district, other than:
118.21 	(1) to pay administrative expenses; or
118.22 	(2) to pay the costs of housing projects that meet the requirements of Minnesota 
118.23 	Statutes, section 469.1761, provided that expenditures under this clause may not exceed 
118.24 	20 percent of the total tax increments from the district. 

118.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

118.26 	Sec. 13. Laws 2006, chapter 259, article 10, section 14, subdivision 1, is amended to 
118.27 	read:
118.28 		Subdivision 1. Definitions. (a) "City" means the city of Minneapolis. 
118.29 	(b) "Homeless assistance tax increment district" means a contiguous area of the 
118.30 	city that: 
118.31 	(1) is no larger than six eight acres; 
118.32 	(2) is located within the boundaries of a city municipal development district; and 
119.1 	(3) contains at least two shelters for homeless persons that have been owned or 
119.2 	operated by nonprofit corporations that (i) are qualified charitable organizations under 
119.3 	section 501(c)(3) of the United States Internal Revenue Code, (ii) have operated such 
119.4 	homeless facilities within the district for at least five years, and (iii) have been recipients 
119.5 	of emergency services grants under Minnesota Statutes, section 256E.36. 

119.6 	EFFECTIVE DATE. This section is effective upon compliance by the city of 
119.7 	Minneapolis with Minnesota Statutes, section 645.021.

119.8 	Sec. 14. Laws 2008, chapter 154, article 9, section 23, is amended to read:
119.9 	Sec. 23. CITY OF FRIDLEY; TAX INCREMENT FINANCING DISTRICT; 
119.10 	SPECIAL RULES.
 119.11 	(a) If the city elects upon the adoption of a tax increment financing plan for a district, 
119.12 	the rules under this section apply to a one or more redevelopment tax increment financing 
119.13 	district districts established by the city of Fridley or the housing and redevelopment 
119.14 	authority of the city. The area within which the redevelopment tax increment district
119.15 	districts may be created includes the following parcels and adjacent railroad property 
119.16 	and shall be referred to as the Northstar Transit Station District Project Area: parcel 
119.17 	numbers 223024120010, 223024120009, 223024120017, 223024120016, 223024120018, 
119.18 	223024120012, 223024120011, 223024120005, 223024120004, 223024120003, 
119.19 	223024120013, 223024120008, 223024120007, 223024120006, 223024130005, 
119.20 	223024130010, 223024130011, 223024130003, 153024440039, 153024440037, 
119.21 	153024440041, 153024440042, 223024110013, 223024110016, 223024110017, 
119.22 	223024140008, 223024130002, 223024420004, 223024410002, 223024410003, 
119.23 	223024110008, 223024110007, 223024110019, 223024110018, 223024110003, 
119.24 	223024140003, 223024140009, 223024140002, 223024140010, and 223024410007. 
119.25 	(b) The requirements for qualifying a redevelopment tax increment district under 
119.26 	Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcels located 
119.27 	within the Northstar Transit Station District Project Area, which are deemed eligible for 
119.28 	inclusion in a redevelopment tax increment district. 
119.29 	(c) In addition to the costs permitted by Minnesota Statutes, section 469.176, 
119.30 	subdivision 4j, eligible expenditures within the Northstar Transit Station District Project 
119.31 	Area include those costs necessary to provide for the construction and land acquisition 
119.32 	for a tunnel under the Burlington Northern Santa Fe railroad tracks to allow access to the 
119.33 	Northstar Commuter Rail. 
120.1 	(d) The limitations on spending increments outside of the district under Minnesota 
120.2 	Statutes, section 469.1763, subdivision 2, do not apply, but increments may only be 
120.3 	expended on improvements or activities within the area defined in paragraph (a).
120.4 	(e) Notwithstanding the provisions of Minnesota Statutes, section 469.1763, 
120.5 	subdivision 2, the city of Fridley may expend increments generated from its tax increment 
120.6 	financing districts Nos. 11, 12, and 13 for costs permitted by paragraph (c) and Minnesota 
120.7 	Statutes, section 469.176, subdivision 4j, outside the boundaries of tax increment 
120.8 	financing districts Nos. 11, 12, and 13, but only within the Northstar Transit Station 
120.9 	District Project Area. 
120.10 	(e) (f) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, 
120.11 	does not apply to the Northstar Transit Station District Project Area or to tax increment 
120.12 	financing districts Nos. 11, 12, and 13. 
120.13 	(f) (g) The use of revenues for decertification under Minnesota Statutes, section 
120.14 	469.1763, subdivision 4, does not apply to tax increment financing districts Nos. 11, 
120.15 	12, and 13. 
120.16 	(h) The authority to approve tax increment financing plans and to establish one or 
120.17 	more tax increment financing districts under this section expires on December 31, 2017.

120.18 	EFFECTIVE DATE. This section is effective upon approval by the governing body 
120.19 	of the city of Fridley and upon compliance by the city with Minnesota Statutes, section 
120.20 	645.021, subdivision 3.

120.21 	Sec. 15. Laws 2008, chapter 154, article 9, section 24, is amended to read:
120.22 	Sec. 24. CITY OF NEW BRIGHTON; TAX INCREMENT FINANCING; 
120.23 	EXPENDITURES OUTSIDE DISTRICT.
 120.24 		Subdivision 1.Expenditures outside district. Notwithstanding the provisions of 
120.25 	Minnesota Statutes, section sections 469.176, subdivision 4d, and 469.1763, subdivision 
120.26 	2, or any other law to the contrary, the city of New Brighton may expend increments 
120.27 	generated from its tax increment financing district No. 26 to facilitate eligible activities
120.28 	districts 9, 20, and 26. The increments may be used to pay eligible expenses as permitted 
120.29 	by Minnesota Statutes, section 469.176, subdivision 4e 4j, outside the boundaries of 
120.30 	tax increment financing district No. 26 districts 9, 20, and 26, but only within the area 
120.31 	described in Laws 1998, chapter 389, article 11, section 24, subdivision 1, and commonly 
120.32 	referred to as the Northwest Quadrant. Minnesota Statutes, section 469.1763, subdivisions 
120.33 	3 and 4, do not apply to expenditures permitted by this section. 
120.34 		Subd. 2.District duration extension. Notwithstanding the provisions of Minnesota 
120.35 	Statutes, section 469.176, subdivision 1b, or any other law to the contrary, the duration 
121.1 	limits that apply to redevelopment tax increment financing districts numbers 31 and 32 
121.2 	established under Laws 1998, chapter 389, article 11, section 24, and hazardous substance 
121.3 	subdistricts numbers 31A and 32A established under Minnesota Statutes, sections 469.174 
121.4 	to 469.1799, are extended by four years.

121.5 	EFFECTIVE DATE. This section is effective upon approval by the governing body 
121.6 	of the city of New Brighton and upon compliance by the city with Minnesota Statutes, 
121.7 	section 645.021, subdivision 3.

121.8 	Sec. 16. CITY  OF AUSTIN; TAX INCREMENT FINANCING AUTHORITY.
 121.9 	Notwithstanding the requirements of Minnesota Statutes, section 469.1763, 
121.10 	subdivision 3, that activities must be undertaken within a five-year period from the date of 
121.11 	certification of tax increment financing district and notwithstanding the provisions of any 
121.12 	other law, the governing body of the city of Austin may use tax increments from its Tax 
121.13 	Increment Financing District No. 9 to reimburse the city's housing and redevelopment 
121.14 	authority for money spent disposing of soils and debris in the tax increment financing 
121.15 	district, as required by the Minnesota Pollution Control Agency.

121.16 	EFFECTIVE DATE. This section is effective upon compliance by the governing 
121.17 	body of the city of Austin with the requirements of Minnesota Statutes, section 645.021.

121.18 	Sec. 17. CITY OF BLOOMINGTON; TAX INCREMENT FINANCING 
121.19 	DISTRICT; PROJECT REQUIREMENTS.
 121.20 		Subdivision 1.Addition of parcels to Tax Increment District No. 1-G.
 121.21 	Notwithstanding the provisions of Minnesota Statutes, section 469.175, subdivision 4, 
121.22 	or any other law to the contrary, the governing bodies of the Port Authority of the city 
121.23 	of Bloomington and the city of Bloomington may elect to eliminate certain real property 
121.24 	from Tax Increment District No. 1-C within Industrial Development District No. 1 Airport 
121.25 	South in the city of Bloomington, Minnesota, and expand the boundaries of Tax Increment 
121.26 	District No. 1-G to include real property, which is described as follows:
121.27 	(1) PARCEL A: Outlot A, MALL OF AMERICA 5TH ADDITION, according to 
121.28 	the recorded plat thereof, Hennepin County, Minnesota;
121.29 	(2) PARCEL B: Lots 1 and 2, Block 1, MALL OF AMERICA 6TH ADDITION, 
121.30 	according to the recorded plat thereof, Hennepin County, Minnesota;
121.31 	(3) PARCEL C: That part of Lindau Lane lying westerly of 24th Avenue South and 
121.32 	lying easterly of State Highway No. 77;
122.1 	(4) PARCEL D: Those parts of Lots 1, 2, and 3, Block 1, MALL OF AMERICA 
122.2 	3RD ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota, 
122.3 	which lie northerly of a line described as commencing at the most westerly northwest 
122.4 	corner of said Lot 1; thence on an assumed bearing of South 4 degrees 10 minutes 55 
122.5 	seconds West, along the west line of said Lot 1, a distance of 58.60 feet to the point of 
122.6 	beginning of the line to be described; thence South 89 degrees 59 minutes 29 seconds East 
122.7 	a distance of 205.48 feet; thence South 62 degrees 16 minutes 23 seconds East a distance 
122.8 	of 169.47 feet; thence North 445 degrees 01 minute 28 seconds East a distance of 249.76 
122.9 	feet; thence South 89 degrees 59 minutes 39 seconds East a distance of 88.47 feet; thence 
122.10 	South 45 degrees 09 minutes 10 seconds East a distance of 225.13 feet; thence South 89 
122.11 	degrees 59 minutes 52 seconds East a distance of 303.62 feet; thence South 0 degrees 00 
122.12 	minutes 08 seconds West a distance of 10.00 feet; thence North 89 degrees 57 minutes 
122.13 	47 seconds East a distance of 55.90 feet; thence North 0 degrees 06 minutes 52 seconds 
122.14 	West a distance of 10.01 feet; thence North 89 degrees 59 minutes 04 seconds East a 
122.15 	distance of 332.04 feet; thence North 44 degrees 57 minutes 59 seconds East a distance of 
122.16 	251.28 feet; thence South 45 degrees 05 minutes 41 seconds East a distance of 267.55 
122.17 	feet; thence North 73 degrees 11 minutes 28 seconds East a distance of 145.63 feet; thence 
122.18 	South 89 degrees 59 minutes 38 seconds East a distance of 217.21 feet to the east line of 
122.19 	said Lot 1 and said line there terminating;
122.20 	(5) PARCEL E: That part of Lot 1, Block 1, MALL OF AMERICA 3RD 
122.21 	ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota, 
122.22 	described as commencing at the most southerly southwest corner of said Lot 1; thence 
122.23 	on an assumed bearing of South 88 degrees 03 minutes 50 seconds East, along the south 
122.24 	line of said Lot 1, a distance of 847.28 feet to the point of beginning of the parcel to be 
122.25 	described; thence North 0 degrees 01 minutes 05 seconds West a distance of 307.69 feet; 
122.26 	thence North 89 degrees 59 minutes 32 seconds East a distance of 163.77 feet; thence 
122.27 	North 0 degrees 00 minutes 36 seconds East a distance of 10.17 feet; thence South 89 
122.28 	degrees 59 minutes 24 seconds East a distance 55.93 feet; thence South 0 degrees 02 
122.29 	minutes 42 seconds West a distance of 10.21 feet; thence South 89 degrees 59 minutes 24 
122.30 	seconds East a distance of 242.25 feet; thence South 0 degrees 00 minutes 36 seconds 
122.31 	West a distance of 54.87 feet; thence South 62 degrees 14 minutes 23 seconds East a 
122.32 	distance of 22.55 feet; thence South 45 degrees 05 minutes 26 seconds East a distance 
122.33 	of 263.33 feet; thence South 0 degrees 12 minutes 39 seconds East a distance of 62.13 
122.34 	feet to said south line of Lot 1; thence westerly along said south line of Lot 1, a distance 
122.35 	of 668.64 feet to the point of beginning;
123.1 	(6) PARCEL F: That part of Lot 1, Block 1, MALL OF AMERICA 3RD 
123.2 	ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota, 
123.3 	described as beginning at the most westerly southwest corner of said Lot 1; thence on an 
123.4 	assumed bearing of North 4 degrees 10 minutes 55 seconds East, along the west line of 
123.5 	said Lot 1, a distance of 490.00 feet; thence South 89 degrees 59 minutes 26 seconds East 
123.6 	a distance of 69.49 feet; thence South 0 degrees 00 minutes 34 seconds West a distance of 
123.7 	488.70 feet; thence North 89 degrees 59 minutes 26 seconds West a distance of 105.14 
123.8 	feet to the point of beginning;
123.9 	(7) PARCEL G: That part of Lot 1, Block 1, MALL OF AMERICA 3RD 
123.10 	ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota, 
123.11 	described as commencing at the most westerly southwest corner of said Lot 1; thence on 
123.12 	an assumed bearing of North 4 degrees 10 minutes 55 seconds East, along the west line 
123.13 	of said Lot 1, a distance of 873.70 feet; thence South 89 degrees 58 minutes 59 seconds 
123.14 	East a distance of 273.87 feet to the point of beginning of the parcel to be described; 
123.15 	thence continuing South 89 degrees 58 minutes 59 seconds East a distance of 130.00 feet; 
123.16 	thence South 0 degrees 01 minute 01 second West a distance of 216.53 feet; thence South 
123.17 	85 degrees 23 minutes 04 seconds East a distance of 1.70 feet; thence South 0 degrees 
123.18 	01 minute 01 second West a distance of 87.63 feet; thence South 83 degrees 20 minutes 
123.19 	10 seconds West a distance of 1.68 feet; thence South 0 degrees 01 minute 49 seconds 
123.20 	East a distance of 216.46 feet; thence North 89 degrees 58 minutes 59 seconds West a 
123.21 	distance of 130.21 feet; thence North 0 degrees 01 minute 01 second East a distance of 
123.22 	520.95 feet to the point of beginning, which lies above an elevation of 894.2 feet, Mean 
123.23 	Sea Level Datum NGVD 1929 adjustment;
123.24 	(8) PARCEL H: That part of Lot 1, Block 1, MALL OF AMERICA 3RD 
123.25 	ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota, 
123.26 	described as commencing at the most westerly southwest corner of said Lot 1; thence on 
123.27 	an assumed bearing of North 4 degrees 10 minutes 55 seconds East, along the west line of 
123.28 	said Lot 1, a distance of 873.70 feet; thence South 89 degrees 58 minutes 59 seconds East a 
123.29 	distance of 403.87 feet; thence North 89 degrees 56 minutes 58 seconds East a distance of 
123.30 	61.26 feet to the point of beginning of the parcel to be described; thence South 89 degrees 
123.31 	56 minutes 58 seconds West a distance of 61.26 feet; thence South 0 degrees 01 minute 01 
123.32 	second West a distance of 216.53 feet; thence South 85 degrees 23 minutes 04 seconds 
123.33 	East a distance of 1.70 feet; thence South 0 degrees 01 minute 01 second West a distance 
123.34 	of 87.63 feet; thence South 83 degrees 20 minutes 10 seconds West a distance of 1.68 feet; 
123.35 	thence South 0 degrees 01 minute 49 seconds East a distance of 216.46 feet; thence North 
123.36 	89 degrees 56 minutes 58 seconds East a distance of 61.15 feet to a line bearing South 0 
124.1 	degrees 00 minutes 24 seconds West from the point of beginning; thence North 0 degrees 
124.2 	00 minutes 24 seconds East a distance of 520.95 feet to the point of beginning;
124.3 	(9) PARCEL I: That part of Lot 1, Block 1, MALL OF AMERICA 3RD ADDITION, 
124.4 	according to the recorded plat thereof, Hennepin County, Minnesota, described as 
124.5 	commencing at the most westerly southwest corner of said Lot 1; thence on an assumed 
124.6 	bearing of North 4 degrees 10 minutes 55 seconds East, along the west line of said Lot 1, a 
124.7 	distance of 873.70 feet; thence South 89 degrees 58 minutes 59 seconds East a distance 
124.8 	of 403.87 feet; thence North 89 degrees 56 minutes 58 seconds East a distance of 61.26 
124.9 	feet; thence South 0 degrees 00 minutes 24 seconds West a distance of 5.54 feet to the 
124.10 	point of beginning of the parcel to be described; thence continuing South 0 degrees 00 
124.11 	minutes 24 seconds West a distance of 300.00 feet; thence South 89 degrees 59 minutes 36 
124.12 	seconds East a distance of 123.79 feet; thence North 0 degrees 00 minutes 24 seconds East 
124.13 	a distance of 299.98 feet; thence North 89 degrees 58 minutes 55 seconds West a distance 
124.14 	of 123.79 feet to the point of beginning, which lies above an elevation of 877.6 feet, Mean 
124.15 	Sea Level Datum NGVD 1929 adjustment;
124.16 	(10) PARCEL J: That part of Lot 4, Block 1, MALL OF AMERICA 3RD 
124.17 	ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota, which 
124.18 	lies above an elevation of 878.0 feet, Mean Sea Level Datum NGVD 1929 adjustment; and
124.19 	(11) PARCEL K: That part of Lot 1, Block 1, MALL OF AMERICA 3RD 
124.20 	ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota, 
124.21 	described as beginning at the most southerly southeast corner of said Lot 1; thence on an 
124.22 	assumed bearing of North 86 degrees 49 minutes 30 seconds West, along the south line of 
124.23 	said Lot 1, a distance of 117.87 feet; thence North 0 degrees 01 minute 27 seconds East a 
124.24 	distance of 293.98 feet; thence North 89 degrees 59 minutes 41 seconds East a distance of 
124.25 	213.38 feet to the east line of said Lot 1; thence southerly and westerly along said east and 
124.26 	south lines of Lot 1, a distance of 357.03 feet to the point of beginning.
124.27 		Subd. 2.Original tax capacity of Tax Increment District No. 1-G. Upon 
124.28 	inclusion of the real property described above in the Tax Increment District No. 1-G, 
124.29 	the Hennepin County auditor must increase the original tax capacity of Tax Increment 
124.30 	District No. 1-G by $10,490.
124.31 		Subd. 3.Use of increments. All tax increments from Tax Increment District No. 
124.32 	1-G must be used for infrastructure costs.
124.33 		Subd. 4.Public hearing on district modification. When the governing bodies of 
124.34 	the port authority or the city elect to exercise the authority provided in subdivision 1 to 
124.35 	modify the districts, they must conduct a public hearing after published notice on the 
124.36 	issue, with the meeting beginning between 6:00 p.m. and 7:00 p.m. on a weeknight. 
125.1 	Modification of the district must be approved by a unanimous vote of all members of the 
125.2 	governing body who are present at the meeting.
125.3 		Subd. 5.Construction of Mall of America phase II. The governing body of the 
125.4 	city of Bloomington and the Bloomington port authority, as a condition of providing tax 
125.5 	increments or other financial assistance for infrastructure costs of the Mall of America 
125.6 	phase II, must enter into an agreement with the developers of the project that ensures that 
125.7 	the facility be, to the greatest extent practicable, constructed of American-made steel and 
125.8 	that prohibits inclusion of an auditorium, theater, or similar entertainment venue that 
125.9 	has a seating capacity in excess of 1500.
125.10 		Subd. 6.Living wage. Any agreement to provide financial assistance to phase II of 
125.11 	the Mall of America project must include a provision that requires payment of wages that 
125.12 	meet the requirements of Minnesota Statutes, section 469.310, subdivision 11, paragraph 
125.13 	(g), to persons employed on a full-time basis at the facility. This subdivision does not 
125.14 	apply to seasonal or temporary employees or to internships or similar positions intended 
125.15 	to provide career experience or training. This subdivision does not apply to nonprofit 
125.16 	organizations, educational institutions, or businesses that employ fewer than 50 employees.
125.17 		Subd. 7.Affordable access. To the extent determined by the governing body of 
125.18 	the city or the port authority, any agreement to provide financial assistance to phase II 
125.19 	of the Mall of America project must provide for affordable access to the amusement 
125.20 	areas of the facility.
125.21 		Subd. 8.Labor peace. As a condition to exercising the authority provided in 
125.22 	subdivision 1, the governing bodies of the city of Bloomington and the Bloomington Port 
125.23 	Authority shall require the developers of Phase II of the Mall of America project to enter 
125.24 	into a labor peace agreement with the labor organization which is most actively engaged in 
125.25 	representing and attempting to represent hotel workers in Hennepin and Ramsey Counties. 
125.26 	The labor peace agreement must be an enforceable agreement and must prohibit the labor 
125.27 	organization and its members from engaging in any boycott or other activity advising 
125.28 	customers not to patronize any hotel that is part of Phase II for at least the first five years 
125.29 	of the hotel's operation, and must cover all operations at the hotel, other than construction, 
125.30 	alteration, or repair of the premises separately owned and operated, which are conducted 
125.31 	by lessees or tenants or under management agreements, except retail operations, including 
125.32 	gift, jewelry, and clothing shops that have annual gross revenues of less than $250,000.

125.33 	EFFECTIVE DATE. This section is effective upon compliance with Minnesota 
125.34 	Statutes, section 645.021, subdivision 3.

125.35 	Sec. 18. CITY OF BLOOMINGTON; LOCAL TAXING AUTHORITY.
 126.1 		Subdivision 1.Additional taxes authorized; use of proceeds. Notwithstanding 
126.2 	Minnesota Statutes, section 477A.016, or any other law, ordinance, or charter provision 
126.3 	to the contrary, the governing body of the city of Bloomington may impose any or all of 
126.4 	the taxes described in this section. The proceeds of any taxes imposed under this section, 
126.5 	less refunds and the cost of collection, must be used to provide financing for a parking 
126.6 	facility for the Mall of America phase II. If a governmental entity other than the city of 
126.7 	Bloomington issues the obligations used to finance the parking facility, the city may 
126.8 	transfer the funds available under this act for financing the project to the entity that issued 
126.9 	the bonds.
126.10 		Subd. 2.Sales tax. The city may impose by ordinance a sales and use tax of up 
126.11 	to one percent within a special taxing district that includes the geographic area included 
126.12 	within Tax Increment Districts No. 1-C and No. 1-G in the city of Bloomington. The 
126.13 	provisions of Minnesota Statutes, section 297A.99, except for subdivisions 2 and 3, 
126.14 	govern the imposition, administration, collection, and enforcement of the tax authorized 
126.15 	in this subdivision.
126.16 		Subd. 3.Lodging tax. The city may impose, by ordinance, a tax of no less than 
126.17 	three-quarters of one percent and no more than one percent on the gross receipts subject to 
126.18 	the lodging tax under Minnesota Statutes, section 469.190. This tax is in addition to any 
126.19 	tax imposed under Minnesota Statutes, section 469.190, and, if imposed, must apply at the 
126.20 	same rate in all areas of the city.
126.21 		Subd. 4.Admissions and recreation tax. The city may impose, by ordinance, a 
126.22 	tax of up to one percent on admissions to entertainment and recreational facilities and 
126.23 	rental of recreation equipment at sites within Tax Increment Districts No. 1-C and No. 
126.24 	1-G in the city of Bloomington.
126.25 		Subd. 5.Food and beverage tax. The city may impose, by ordinance, an additional 
126.26 	sales tax of up to three percent on sales of food and beverages primarily for consumption 
126.27 	on or off the premises by restaurants and places of refreshment as defined by resolution of 
126.28 	the city within Tax Increment Districts No. 1-C and No. 1-G in the city of Bloomington.
126.29 		Subd. 6.Lodging taxes. Notwithstanding any law or ordinance, the city may 
126.30 	use the unobligated proceeds of any existing city lodging tax attributable to imposition 
126.31 	of the tax on lodging facilities constructed after the date of enactment of this act within 
126.32 	Tax Increment Financing District No. 1-G. In this subdivision, "unobligated proceeds 
126.33 	of any existing city lodging tax" means the proceeds of a lodging tax imposed by the 
126.34 	city of Bloomington prior to May 1, 2008, to the extent the proceeds of the tax are not 
126.35 	contractually pledged to any other specific uses. Lodging tax proceeds derived from 
126.36 	lodging facilities constructed after the date of enactment of this act within Tax Increment 
127.1 	Financing District No. 1-G that have been required by law to be expended for promotion 
127.2 	of the metropolitan sports area or for marketing and promotion of the city by the city 
127.3 	convention bureau may be expended for the purposes described in subdivision 1, 
127.4 	notwithstanding the dedications in those laws.

127.5 	EFFECTIVE DATE. This section is effective the day after compliance by the 
127.6 	governing body of the city of Bloomington with Minnesota Statutes, section 645.021, 
127.7 	subdivision 3.

127.8 	Sec. 19. DAKOTA COUNTY COMMUNITY DEVELOPMENT AUTHORITY; 
127.9 	PLAN MODIFICATION.
 127.10 	Notwithstanding Minnesota Statutes, section 469.175, subdivision 4, the Dakota 
127.11 	County Community Development Authority may designate additional property to be 
127.12 	acquired by the authority for a tax increment financing project without meeting the 
127.13 	requirements for approval of an original tax increment financing plan if the property:
127.14 	(1) consists of one or more parcels under common ownership;
127.15 	(2) is acquired from a willing seller;
127.16 	(3) is acquired for purposes of development as a housing project as defined in 
127.17 	Minnesota Statutes, section 469.174, subdivision 11; and
127.18 	(4) the acquisition is approved by the governing body of the authority after holding 
127.19 	a public hearing thereon after published notice in a newspaper of general circulation in 
127.20 	the municipality in which the property is located at least once not less than ten days nor 
127.21 	more than 30 days prior to the date of the hearing. The published notice must include a 
127.22 	map depicting the property and the general area of the municipality within which the 
127.23 	property is located. The hearing may be held before or at the time of authority approval 
127.24 	of the acquisition.

127.25 	EFFECTIVE DATE. This section is effective upon compliance by the governing 
127.26 	body of the Dakota County Community Development Authority with the requirements of 
127.27 	Minnesota Statutes, section 645.021, and terminates July 1, 2013.

127.28 	Sec. 20. CITY OF DAYTON; HASSAN TOWNSHIP; LIMIT ON ABATEMENTS.
 127.29 	Notwithstanding the limitation in Minnesota Statutes, section 469.1813, subdivision 
127.30 	8, for the city of Dayton and Hassan Township, in any year, the total amount of property 
127.31 	taxes abated by the city or the town may not exceed ten percent of the net tax capacity of 
127.32 	the city or town for the taxes payable year to which the abatement applies.

128.1 	EFFECTIVE DATE. This section is effective, for the city of Dayton, upon 
128.2 	compliance by the governing body of the city of Dayton and, for Hassan Township, 
128.3 	upon compliance by the governing body of Hassan Township, with the requirements 
128.4 	of Minnesota Statutes, section 645.021.

128.5 	Sec. 21. CITY OF DULUTH; EXTENSION OF TIME FOR ACTIVITY IN TAX 
128.6 	INCREMENT FINANCING DISTRICTS.
 128.7 		Subdivision 1.District No. 20. The requirements of Minnesota Statutes, section 
128.8 	469.1763, subdivision 3, that activities must be undertaken within a five-year period from 
128.9 	the date of certification of a tax increment financing district, must be considered to be met 
128.10 	for Duluth Economic Development Authority Tax Increment Financing District No. 20 if 
128.11 	the activities are undertaken within ten years from the date of certification of the district.
128.12 		Subd. 2.District No. 21. The requirements of Minnesota Statutes, section 
128.13 	469.1763, subdivision 3, that activities must be undertaken within a five-year period from 
128.14 	the date of certification of a tax increment financing district, must be considered to be met 
128.15 	for Duluth Economic Development Authority Tax Increment Financing District No. 21 if 
128.16 	the activities are undertaken within ten years from the date of certification of the district.

128.17 	EFFECTIVE DATE. This section is effective upon compliance by the governing 
128.18 	body of the city of Duluth with the requirements of Minnesota Statutes, section 645.021.

128.19 	Sec. 22. CITY OF OAKDALE; EXTENDED DURATION FOR TAX 
128.20 	INCREMENT FINANCING DISTRICTS.
 128.21 	(a) Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, the 
128.22 	Housing and Redevelopment Authority in and for the city of Oakdale may create a 
128.23 	redevelopment tax increment district that has a duration limit of 35 years after receipt of 
128.24 	the first increment in each of the areas described in paragraph (b).
128.25 	(b) The district or districts may be created in either or both of the areas 
128.26 	comprised of the parcels with the following parcel identification numbers: (1) 
128.27 	3102921320053; 3102921320054; 3102921320055; 3102921320056; 3102921320057; 
128.28 	3102921320058; 3102921320062; 3102921320063; 3102921320059; 3102921320060; 
128.29 	and 3102921320061; and (2) 3102921330005 and 3102921330004.

128.30 	EFFECTIVE DATE. This section is effective upon compliance by the governing 
128.31 	body of the city of Oakdale with Minnesota Statutes, section 645.021, subdivision 3.

128.32 	Sec. 23. CITY OF WELLS; DISPOSITION OF TIF REVENUES.
 129.1 	Notwithstanding the provisions of Minnesota Statutes, section 469.174, subdivision 
129.2 	25, the following are deemed not to be "increments," "tax increments," or "revenues 
129.3 	derived from tax increment" for purposes of the redevelopment district in the city of 
129.4 	Wells, identified as Downtown Development Program 1, for amounts received after 
129.5 	decertification of the district:
129.6 	(1) rents paid by private tenants for use of a building acquired in whole or in part 
129.7 	with tax increments; and
129.8 	(2) proceeds from the sale of the building.

129.9 	EFFECTIVE DATE. This section is effective upon compliance by the governing 
129.10 	body of the city of Wells with the requirements of Minnesota Statutes, section 645.021.

129.11 	Sec. 24. METROPOLITAN SPORTS FACILITIES COMMISSION; VIKINGS 
129.12 	STADIUM RECOMMENDATION.
 129.13 	The Metropolitan Sports Facilities Commission and representatives of the Minnesota 
129.14 	Vikings shall develop a recommendation for the development and financing of a stadium 
129.15 	located on the site of the Hubert H. Humphrey Metrodome, that, at a minimum:
129.16 	(1) meets the programmatic requirements of the National Football League;
129.17 	(2) has a retractable roof;
129.18 	(3) accommodates NCAA men's and women's championship basketball, and 
129.19 	professional and amateur soccer; and
129.20 	(4) utilizes financing and funding mechanisms that are borne by those using or 
129.21 	benefitting from the stadium development. 
129.22 	The analysis will also include an assessment of the feasibility of other activities 
129.23 	requiring a climate-controlled venue, including amateur baseball, trade shows, community 
129.24 	and cultural events, and other events of national and international significance. The 
129.25 	analysis must also include an evaluation of the use of a new tax on sports memorabilia to 
129.26 	finance the facility or other public facilities. The recommendation must contain a report 
129.27 	on the programmatic elements, construction schedule, conceptual and schematic design, 
129.28 	estimated cost, proposals for financing and funding. Costs of architects, engineers, and 
129.29 	other design consultants must be shared between the parties and will be included in the 
129.30 	total stadium project costs. A report on the recommendation must be presented to the 
129.31 	legislature by January 15, 2009.

130.1 	ARTICLE 10
130.2 	DEPARTMENT INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES

130.3 	Section 1. Minnesota Statutes 2006, section 289A.18, subdivision 1, as amended by 
130.4 	Laws 2008, chapter 154, article 11, section 5, is amended to read:
130.5 		Subdivision 1. Individual income, fiduciary income, corporate franchise, and 
130.6 	entertainment taxes; partnership and S corporation returns; information returns; 
130.7 	mining company returns. The returns required to be made under sections 289A.08 and 
130.8 	289A.12 must be filed at the following times: 
130.9 	(1) returns made on the basis of the calendar year must be filed on April 15 following 
130.10 	the close of the calendar year, except that returns of corporations must be filed on March 
130.11 	15 following the close of the calendar year; 
130.12 	(2) returns made on the basis of the fiscal year must be filed on the 15th day of the 
130.13 	fourth month following the close of the fiscal year, except that returns of corporations 
130.14 	must be filed on the 15th day of the third month following the close of the fiscal year; 
130.15 	(3) returns for a fractional part of a year must be filed on the 15th day of the fourth 
130.16 	month following the end of the month in which falls the last day of the period for which 
130.17 	the return is made, except that the returns of corporations must be filed on the 15th day of 
130.18 	the third month following the end of the tax year; or, in the case of a corporation which is 
130.19 	a member of a unitary group, the return of the corporation must be filed on the 15th day of 
130.20 	the third month following the end of the tax year of the unitary group in which falls the 
130.21 	last day of the period for which the return is made; 
130.22 	(4) in the case of a final return of a decedent for a fractional part of a year, the return 
130.23 	must be filed on the 15th day of the fourth month following the close of the 12-month 
130.24 	period that began with the first day of that fractional part of a year; 
130.25 	(5) in the case of the return of a cooperative association, returns must be filed on or 
130.26 	before the 15th day of the ninth month following the close of the taxable year; 
130.27 	(6) if a corporation has been divested from a unitary group and files a return for 
130.28 	a fractional part of a year in which it was a member of a unitary business that files a 
130.29 	combined report under section 290.34 290.17, subdivision 24, the divested corporation's 
130.30 	return must be filed on the 15th day of the third month following the close of the common 
130.31 	accounting period that includes the fractional year; 
130.32 	(7) returns of entertainment entities must be filed on April 15 following the close of 
130.33 	the calendar year; 
130.34 	(8) returns required to be filed under section 289A.08, subdivision 4, must be filed 
130.35 	on the 15th day of the fifth month following the close of the taxable year; 
131.1 	(9) returns of mining companies must be filed on May 1 following the close of the 
131.2 	calendar year; and 
131.3 	(10) returns required to be filed with the commissioner under section 289A.12, 
131.4 	subdivision 2 or 4 to 10, must be filed within 30 days after being demanded by the 
131.5 	commissioner. 

131.6 	EFFECTIVE DATE. This section is effective the day following final enactment 
131.7 	except that the change in clause (6) is effective for taxable years beginning after December 
131.8 	31, 2007.

131.9 	Sec. 2. Minnesota Statutes 2006, section 290.01, subdivision 6b, is amended to read:
131.10 		Subd. 6b.Foreign operating corporation. The term "foreign operating 
131.11 	corporation," when applied to a corporation, means a domestic corporation with the 
131.12 	following characteristics:
131.13 	(1) it is part of a unitary business at least one member of which is taxable in this state;
131.14 	(2) it is not a foreign sales corporation under section 922 of the Internal Revenue 
131.15 	Code, as amended through December 31, 1999, for the taxable year;
131.16 	(3)(i) the average of the percentages of its property and payrolls, including the pro 
131.17 	rata share of its unitary partnerships' property and payrolls, assigned to locations outside 
131.18 	the United States, where the United States includes the District of Columbia and excludes 
131.19 	the commonwealth of Puerto Rico and possessions of the United States, as determined 
131.20 	under section 290.191 or 290.20, is 80 percent or more; or (ii) it has in effect a valid 
131.21 	election under section 936 of the Internal Revenue Code; and
131.22 	(4) it has a minimum of $1,000,000 of payroll and $2,000,000 of property, as 
131.23 	determined under section 290.191 or 290.20, that are located outside the United States. If 
131.24 	the domestic corporation does not have payroll as determined under section 290.191 or 
131.25 	290.20, but it or its partnerships have paid $1,000,000 for work, performed directly for the 
131.26 	domestic corporation or the partnerships, outside the United States, then paragraph (3)(i) 
131.27 	shall not require payrolls to be included in the average calculation.

131.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

131.29 	Sec. 3. Minnesota Statutes 2006, section 290.068, subdivision 3, is amended to read:
131.30 		Subd. 3.Limitation; carryover. (a)(1) The credit for the taxable year shall not 
131.31 	exceed the liability for tax. "Liability for tax" for purposes of this section means the tax 
131.32 	imposed under this chapter section 290.06, subdivision 1, for the taxable year reduced by 
131.33 	the sum of the nonrefundable credits allowed under this chapter.
132.1 	(2) In the case of a corporation which is a partner in a partnership, the credit allowed 
132.2 	for the taxable year shall not exceed the lesser of the amount determined under clause (1) 
132.3 	for the taxable year or an amount (separately computed with respect to the corporation's 
132.4 	interest in the trade or business or entity) equal to the amount of tax attributable to that 
132.5 	portion of taxable income which is allocable or apportionable to the corporation's interest 
132.6 	in the trade or business or entity.
132.7 	(b) If the amount of the credit determined under this section for any taxable year 
132.8 	exceeds the limitation under clause (a), the excess shall be a research credit carryover to 
132.9 	each of the 15 succeeding taxable years. The entire amount of the excess unused credit for 
132.10 	the taxable year shall be carried first to the earliest of the taxable years to which the credit 
132.11 	may be carried and then to each successive year to which the credit may be carried. The 
132.12 	amount of the unused credit which may be added under this clause shall not exceed the 
132.13 	taxpayer's liability for tax less the research credit for the taxable year.

132.14 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
132.15 	December 31, 2007.

132.16 	Sec. 4. Minnesota Statutes 2006, section 290.07, subdivision 1, is amended to read:
132.17 		Subdivision 1.Annual accounting period. Net income and taxable net income 
132.18 	shall be computed upon the basis of the taxpayer's annual accounting period. If a taxpayer 
132.19 	has no annual accounting period, or has one other than a fiscal year, as heretofore defined, 
132.20 	the net income and taxable net income shall be computed on the basis of the calendar year. 
132.21 	Taxpayers shall employ the same accounting period on which they report, or would be 
132.22 	required to report, their net income under the Internal Revenue Code. The commissioner 
132.23 	shall provide by rule for the determination of the accounting period for taxpayers who 
132.24 	file a combined report under section 290.34 290.17, subdivision 2 4, when members of 
132.25 	the group use different accounting periods for federal income tax purposes. Unless the 
132.26 	taxpayer changes its accounting period for federal purposes, the due date of the return 
132.27 	is not changed. 
132.28 	A taxpayer may change accounting periods only with the consent of the 
132.29 	commissioner. In case of any such change, the taxpayer shall pay a tax for the period 
132.30 	not included in either the taxpayer's former or newly adopted taxable year, computed as 
132.31 	provided in section 290.32. 

132.32 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
132.33 	December 31, 2007.

133.1 	Sec. 5. Minnesota Statutes 2006, section 290.21, subdivision 4, is amended to read:
133.2 		Subd. 4.Dividends received from another corporation. (a)(1) Eighty percent 
133.3 	of dividends received by a corporation during the taxable year from another corporation, 
133.4 	in which the recipient owns 20 percent or more of the stock, by vote and value, not 
133.5 	including stock described in section 1504(a)(4) of the Internal Revenue Code when the 
133.6 	corporate stock with respect to which dividends are paid does not constitute the stock in 
133.7 	trade of the taxpayer or would not be included in the inventory of the taxpayer, or does not 
133.8 	constitute property held by the taxpayer primarily for sale to customers in the ordinary 
133.9 	course of the taxpayer's trade or business, or when the trade or business of the taxpayer 
133.10 	does not consist principally of the holding of the stocks and the collection of the income 
133.11 	and gains therefrom; and
133.12 	(2)(i) the remaining 20 percent of dividends if the dividends received are the stock in 
133.13 	an affiliated company transferred in an overall plan of reorganization and the dividend 
133.14 	is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as 
133.15 	amended through December 31, 1989;
133.16 	(ii) the remaining 20 percent of dividends if the dividends are received from a 
133.17 	corporation which is subject to tax under section 290.36 and which is a member of an 
133.18 	affiliated group of corporations as defined by the Internal Revenue Code and the dividend 
133.19 	is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as 
133.20 	amended through December 31, 1989, or is deducted under an election under section 
133.21 	243(b) of the Internal Revenue Code; or 
133.22 	(iii) the remaining 20 percent of the dividends if the dividends are received from a 
133.23 	property and casualty insurer as defined under section 60A.60, subdivision 8, which is a 
133.24 	member of an affiliated group of corporations as defined by the Internal Revenue Code 
133.25 	and either: (A) the dividend is eliminated in consolidation under Treasury Regulation 
133.26 	1.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted 
133.27 	under an election under section 243(b) of the Internal Revenue Code. 
133.28 	(b) Seventy percent of dividends received by a corporation during the taxable year 
133.29 	from another corporation in which the recipient owns less than 20 percent of the stock, 
133.30 	by vote or value, not including stock described in section 1504(a)(4) of the Internal 
133.31 	Revenue Code when the corporate stock with respect to which dividends are paid does not 
133.32 	constitute the stock in trade of the taxpayer, or does not constitute property held by the 
133.33 	taxpayer primarily for sale to customers in the ordinary course of the taxpayer's trade or 
133.34 	business, or when the trade or business of the taxpayer does not consist principally of the 
133.35 	holding of the stocks and the collection of income and gain therefrom.
134.1 	(c) The dividend deduction provided in this subdivision shall be allowed only with 
134.2 	respect to dividends that are included in a corporation's Minnesota taxable net income 
134.3 	for the taxable year.
134.4 	The dividend deduction provided in this subdivision does not apply to a dividend 
134.5 	from a corporation which, for the taxable year of the corporation in which the distribution 
134.6 	is made or for the next preceding taxable year of the corporation, is a corporation exempt 
134.7 	from tax under section 501 of the Internal Revenue Code.
134.8 	The dividend deduction provided in this subdivision applies to the amount of 
134.9 	regulated investment company dividends only to the extent determined under section 
134.10 	854(b) of the Internal Revenue Code.
134.11 	The dividend deduction provided in this subdivision shall not be allowed with 
134.12 	respect to any dividend for which a deduction is not allowed under the provisions of 
134.13 	section 246(c) of the Internal Revenue Code.
134.14 	(d) If dividends received by a corporation that does not have nexus with Minnesota 
134.15 	under the provisions of Public Law 86-272 are included as income on the return of 
134.16 	an affiliated corporation permitted or required to file a combined report under section
134.17 	290.17, subdivision 4 or290.34, subdivision 2, then for purposes of this subdivision the 
134.18 	determination as to whether the trade or business of the corporation consists principally 
134.19 	of the holding of stocks and the collection of income and gains therefrom shall be made 
134.20 	with reference to the trade or business of the affiliated corporation having a nexus with 
134.21 	Minnesota. 
134.22 	(e) The deduction provided by this subdivision does not apply if the dividends are 
134.23 	paid by a FSC as defined in section 922 of the Internal Revenue Code.
134.24 	(f) If one or more of the members of the unitary group whose income is included on 
134.25 	the combined report received a dividend, the deduction under this subdivision for each 
134.26 	member of the unitary business required to file a return under this chapter is the product 
134.27 	of: (1) 100 percent of the dividends received by members of the group; (2) the percentage 
134.28 	allowed pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's business 
134.29 	income apportionable to this state for the taxable year under section 290.191 or 290.20. 

134.30 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
134.31 	December 31, 2007.

134.32 	Sec. 6. Minnesota Statutes 2006, section 290.92, subdivision 26, is amended to read:
134.33 		Subd. 26.Extension of withholding to certain payments where identifying 
134.34 	number not furnished or inaccurate. (a) If, in the case of any reportable payment, (1) 
134.35 	the payee fails to furnish the payee's Social Security account number to the payor, or
135.1 	(2) the payee is subject to federal backup withholding on the reportable payment under 
135.2 	section 3406 of the Internal Revenue Code, or (3) the commissioner notifies the payor that 
135.3 	the Social Security account number furnished by the payee is incorrect, then the payor 
135.4 	shall deduct and withhold from the payment a tax equal to the amount of the payment 
135.5 	multiplied by the highest rate used in determining the income tax liability of an individual 
135.6 	under section 290.06, subdivision 2c. 
135.7 	(b)(1) In the case of any failure described in clause (a)(1), clause (a) shall apply to 
135.8 	any reportable payment made by the payor during the period during which the Social 
135.9 	Security account number has not been furnished.
135.10 	(2) In any case where there is a notification described in clause (a)(2)(3), clause (a) 
135.11 	shall apply to any reportable payment made by the payor (i) after the close of the 30th 
135.12 	day after the day on which the payor received the notification, and (ii) before the payee 
135.13 	furnishes another Social Security account number.
135.14 	(3)(i) Unless the payor elects not to have this subparagraph apply with respect to 
135.15 	the payee, clause (a) shall also apply to any reportable payment made after the close of 
135.16 	the period described in paragraph (1) or (2) (as the case may be) and before the 30th 
135.17 	day after the close of the period.
135.18 	(ii) If the payor elects the application of this subparagraph with respect to the payee, 
135.19 	clause (a) shall also apply to any reportable payment made during the 30-day period 
135.20 	described in paragraph (2).
135.21 	(iii) The payor may elect a period shorter than the grace period set forth in 
135.22 	subparagraph (i) or (ii) as the case may be.
135.23 	(c) The provisions of section 3406 of the Internal Revenue Code shall apply and 
135.24 	shall govern when withholding shall be required and the definition of terms. The term 
135.25 	"reportable payment" shall include only those payments for personal services. No tax 
135.26 	shall be deducted or withheld under this subdivision with respect to any amount for 
135.27 	which withholding is otherwise required under this section. For purposes of this section, 
135.28 	payments which are subject to withholding under this subdivision shall be treated as if 
135.29 	they were wages paid by an employer to an employee and amounts deducted and withheld 
135.30 	under this subdivision shall be treated as if deducted and withheld under subdivision 2a.
135.31 	(d) Whenever the commissioner notifies a payor under this subdivision that the 
135.32 	Social Security account number furnished by any payee is incorrect, the commissioner 
135.33 	shall at the same time furnish a copy of the notice to the payor, and the payor shall 
135.34 	promptly furnish the copy to the payee. If the commissioner notifies a payor under this 
135.35 	subdivision that the Social Security account number furnished by any payee is incorrect 
135.36 	and the payee subsequently furnishes another Social Security account number to the 
136.1 	payor, the payor shall promptly notify the commissioner of the other Social Security 
136.2 	account number furnished.

136.3 	EFFECTIVE DATE. This section is effective for payments made after December 
136.4 	31, 2008.

136.5 	Sec. 7.  REPEALER.
 136.6 	Minnesota Rules, part 8031.0100, subpart 3, is repealed effective the day following 
136.7 	final enactment.
136.8 	Minnesota Rules, part 8093.2100, is repealed effective the day following final 
136.9 	enactment.

136.10 	ARTICLE 11
136.11 	DEPARTMENT SALES AND USE TAXES

136.12 	Section 1. Minnesota Statutes 2006, section 289A.55, is amended by adding a 
136.13 	subdivision to read:
136.14 		Subd. 10.Relief for purchasers. A purchaser that meets the requirements of section 
136.15 	297A.995, subdivision 11, is relieved from the imposition of interest on tax and penalty.

136.16 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
136.17 	December 31, 2008.

136.18 	Sec. 2. Minnesota Statutes 2006, section 289A.60, is amended by adding a subdivision 
136.19 	to read:
136.20 		Subd. 30.Relief for purchasers. A purchaser that meets the requirements of 
136.21 	section 297A.995, subdivision 11, is relieved from the imposition of penalty.

136.22 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
136.23 	December 31, 2008.

136.24 	Sec. 3. Minnesota Statutes 2006, section 297A.61, subdivision 22, is amended to read:
136.25 		Subd. 22.Internal Revenue Code. Unless specifically provided otherwise, 
136.26 	"Internal Revenue Code" means the Internal Revenue Code of 1986, as amended through 
136.27 	December 31, 2000 2007.

136.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

136.29 	Sec. 4. Minnesota Statutes 2006, section 297A.61, subdivision 29, is amended to read:
137.1 		Subd. 29.State. Unless specifically provided otherwise, "state" means any state of 
137.2 	the United States, the Commonwealth of Puerto Rico, and the District of Columbia.

137.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

137.4 	Sec. 5. Minnesota Statutes 2006, section 297A.665, as amended by Laws 2008, chapter 
137.5 	154, article 12, section 20, is amended to read:
137.6 	297A.665 PRESUMPTION OF TAX; BURDEN OF PROOF. 
137.7 	(a) For the purpose of the proper administration of this chapter and to prevent 
137.8 	evasion of the tax, until the contrary is established, it is presumed that: 
137.9 	(1) all gross receipts are subject to the tax; and 
137.10 	(2) all retail sales for delivery in Minnesota are for storage, use, or other consumption 
137.11 	in Minnesota. 
137.12 	(b) The burden of proving that a sale is not a taxable retail sale is on the seller. 
137.13 	However, a seller is relieved of liability if: 
137.14 	(1) the seller obtains a fully completed exemption certificate or all the relevant 
137.15 	information required by section 297A.72, subdivision 2, at the time of the sale or within 
137.16 	90 days after the date of the sale; or 
137.17 	(2) if the seller has not obtained a fully completed exemption certificate or all the 
137.18 	relevant information required by section 297A.72, subdivision 2, within the time provided 
137.19 	in clause (1), within 120 days after a request for substantiation by the commissioner, 
137.20 	the seller either: 
137.21 	(i) obtains in good faith a fully completed exemption certificate or all the relevant 
137.22 	information required by section 297A.72, subdivision 2, from the purchaser; or 
137.23 	(ii) proves by other means that the transaction was not subject to tax. 
137.24 	(c) Notwithstanding paragraph (b), relief from liability does not apply to a seller who: 
137.25 	(1) fraudulently fails to collect the tax; or 
137.26 	(2) solicits purchasers to participate in the unlawful claim of an exemption. 
137.27 	(d) A certified service provider, as defined in section 297A.995, subdivision 2, is 
137.28 	relieved of liability under this section to the extent a seller who is its client is relieved of 
137.29 	liability.
137.30 	(e) A purchaser of tangible personal property or any items listed in section 297A.63
137.31 	that are shipped or brought to Minnesota by the purchaser has the burden of proving 
137.32 	that the property was not purchased from a retailer for storage, use, or consumption in 
137.33 	Minnesota. 

138.1 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
138.2 	made after December 31, 2007.

138.3 	Sec. 6. Minnesota Statutes 2006, section 297A.67, subdivision 7, as amended by Laws 
138.4 	2008, chapter 154, article 12, section 26, is amended to read:
138.5 		Subd. 7. Drugs; medical devices. (a) Sales of the following drugs and medical 
138.6 	devices for human use are exempt: 
138.7 	(1) drugs for human use, including over-the-counter drugs; 
138.8 	(2) single-use finger-pricking devices for the extraction of blood and other single-use 
138.9 	devices and single-use diagnostic agents used in diagnosing, monitoring, or treating 
138.10 	diabetes; 
138.11 	(3) insulin and medical oxygen for human use, regardless of whether prescribed 
138.12 	or sold over the counter; 
138.13 	(4) prosthetic devices; 
138.14 	(5) durable medical equipment for home use only; 
138.15 	(6) mobility enhancing equipment; 
138.16 	(7) prescription corrective eyeglasses; and 
138.17 	(8) kidney dialysis equipment, including repair and replacement parts. 
138.18 	(b) For purposes of this subdivision: 
138.19 	(1) "Drug" means a compound, substance, or preparation, and any component of 
138.20 	a compound, substance, or preparation, other than food and food ingredients, dietary 
138.21 	supplements, or alcoholic beverages that is: 
138.22 	(i) recognized in the official United States Pharmacopoeia, official Homeopathic 
138.23 	Pharmacopoeia of the United States, or official National Formulary, and supplement 
138.24 	to any of them; 
138.25 	(ii) intended for use in the diagnosis, cure, mitigation, treatment, or prevention 
138.26 	of disease; or 
138.27 	(iii) intended to affect the structure or any function of the body. 
138.28 	(2) "Durable medical equipment" means equipment, including repair and 
138.29 	replacement parts, but not including mobility enhancing equipment, that: 
138.30 	(i) can withstand repeated use; 
138.31 	(ii) is primarily and customarily used to serve a medical purpose; 
138.32 	(iii) generally is not useful to a person in the absence of illness or injury; and 
138.33 	(iv) is not worn in or on the body. 
139.1 	For purposes of this clause, "repair and replacement parts" includes all components 
139.2 	or attachments used in conjunction with the durable medical equipment, but does not 
139.3 	include repair and replacement parts which are for single patient use only.
139.4 	(3) "Mobility enhancing equipment" means equipment, including repair and 
139.5 	replacement parts, but not including durable medical equipment, that: 
139.6 	(i) is primarily and customarily used to provide or increase the ability to move from 
139.7 	one place to another and that is appropriate for use either in a home or a motor vehicle; 
139.8 	(ii) is not generally used by persons with normal mobility; and 
139.9 	(iii) does not include any motor vehicle or equipment on a motor vehicle normally 
139.10 	provided by a motor vehicle manufacturer. 
139.11 	(4) "Over-the-counter drug" means a drug that contains a label that identifies the 
139.12 	product as a drug as required by Code of Federal Regulations, title 21, section 201.66. The 
139.13 	label must include a "drug facts" panel or a statement of the active ingredients with a list of 
139.14 	those ingredients contained in the compound, substance, or preparation. Over-the-counter 
139.15 	drugs do not include grooming and hygiene products, regardless of whether they otherwise 
139.16 	meet the definition. "Grooming and hygiene products" are soaps, cleaning solutions, 
139.17 	shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and sunscreens. 
139.18 	(5) "Prescribed" and "prescription" means a direction in the form of an order, 
139.19 	formula, or recipe issued in any form of oral, written, electronic, or other means of 
139.20 	transmission by a duly licensed health care professional. 
139.21 	(6) "Prosthetic device" means a replacement, corrective, or supportive device, 
139.22 	including repair and replacement parts, worn on or in the body to: 
139.23 	(i) artificially replace a missing portion of the body; 
139.24 	(ii) prevent or correct physical deformity or malfunction; or 
139.25 	(iii) support a weak or deformed portion of the body. 
139.26 	Prosthetic device does not include corrective eyeglasses. 
139.27 	(7) "Kidney dialysis equipment" means equipment that: 
139.28 	(i) is used to remove waste products that build up in the blood when the kidneys are 
139.29 	not able to do so on their own; and 
139.30 	(ii) can withstand repeated use, including multiple use by a single patient. 

139.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

139.32 	Sec. 7. Minnesota Statutes 2006, section 297A.995, subdivision 10, is amended to read:
139.33 		Subd. 10.Relief from certain liability. (a) Notwithstanding subdivision 9, sellers 
139.34 	and certified service providers are relieved from liability to the state for having charged 
140.1 	and collected the incorrect amount of sales or use tax resulting from the seller or certified 
140.2 	service provider (1) relying on erroneous data provided by this statethe commissioner 
140.3 	in the database files on tax rates, boundaries, or taxing jurisdiction assignments, or (2) 
140.4 	relying on erroneous data provided by the state in its taxability matrix concerning the 
140.5 	taxability of products and services.
140.6 	(b) Notwithstanding subdivision 9, sellers and certified service providers are 
140.7 	relieved from liability to the state for having charged and collected the incorrect amount 
140.8 	of sales or use tax resulting from the seller or certified service provider relying on the 
140.9 	certification by the commissioner as to the accuracy of a certified automated system as to 
140.10 	the taxability of product categories. The relief from liability provided by this paragraph 
140.11 	does not apply when the sellers or certified service providers have incorrectly classified 
140.12 	an item or transaction into a product category, unless the item or transaction within a 
140.13 	product category was approved by the commissioner or approved jointly by the states that 
140.14 	are signatories to the agreement. The sellers and certified service providers must revise a 
140.15 	classification within ten days after receipt of notice from the commissioner that an item or 
140.16 	transaction within a product category is incorrectly classified as to its taxability, or they 
140.17 	are not relieved from liability for the incorrect classification following the notification.

140.18 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
140.19 	made after December 31, 2007.

140.20 	Sec. 8. Minnesota Statutes 2006, section 297A.995, is amended by adding a 
140.21 	subdivision to read:
140.22 		Subd. 11.Purchaser relief from certain liability. (a) Notwithstanding other 
140.23 	provisions in the law, a purchaser is relieved from liability resulting from having paid 
140.24 	the incorrect amount of sales or use tax if a purchaser, whether or not holding a direct 
140.25 	pay permit, or a purchaser's seller or certified service provider relied on erroneous data 
140.26 	provided by this state in the database files on tax rates, boundaries, taxing jurisdiction 
140.27 	assignments, or in the taxability matrix. After providing an address-based database for 
140.28 	assigning taxing jurisdictions and their associated rates, no relief for errors resulting from 
140.29 	the purchaser's reliance on a database using zip codes is allowed.
140.30 	(b) With respect to reliance on the taxability matrix provided by this state in 
140.31 	paragraph (a), relief is limited to erroneous classifications in the taxability matrix for 
140.32 	items included within the classifications as "taxable," "exempt," "included in sales 
140.33 	price," "excluded from sales price," "included in the definition," and "excluded from 
140.34 	the definition."

141.1 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
141.2 	December 31, 2008.

141.3 	Sec. 9. Minnesota Statutes 2006, section 297A.995, is amended by adding a 
141.4 	subdivision to read:
141.5 		Subd. 12.Database files. For purposes of this section, "database files on tax rates, 
141.6 	boundaries, and taxing jurisdiction assignments" and the "taxability matrix" means those 
141.7 	databases and the taxability matrix required under the agreement.

141.8 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
141.9 	made after December 31, 2007.

141.10 	Sec. 10. Minnesota Statutes 2006, section 297B.01, subdivision 7, is amended to read:
141.11 		Subd. 7.Sale, sells, selling, purchase, purchased, or acquired. (a) "Sale," "sells," 
141.12 	"selling," "purchase," "purchased," or "acquired" means any transfer of title of any motor 
141.13 	vehicle, whether absolutely or conditionally, for a consideration in money or by exchange 
141.14 	or barter for any purpose other than resale in the regular course of business.
141.15 	(b) Any motor vehicle utilized by the owner only by leasing such vehicle to others 
141.16 	or by holding it in an effort to so lease it, and which is put to no other use by the owner 
141.17 	other than resale after such lease or effort to lease, shall be considered property purchased 
141.18 	for resale.
141.19 	(c) The terms also shall include any transfer of title or ownership of a motor vehicle 
141.20 	by other means, for or without consideration, except that these terms shall not include:
141.21 	(1) the acquisition of a motor vehicle by inheritance from or by bequest of, a 
141.22 	decedent who owned it;
141.23 	(2) the transfer of a motor vehicle which was previously licensed in the names of 
141.24 	two or more joint tenants and subsequently transferred without monetary consideration to 
141.25 	one or more of the joint tenants;
141.26 	(3) the transfer of a motor vehicle by way of gift between individuals, or gift 
141.27 	from a limited used vehicle dealer licensed under section 168.27, subdivision 4a, to an 
141.28 	individual, when the transfer is with no monetary or other consideration or expectation 
141.29 	of consideration and the parties to the transfer submit an affidavit to that effect at the 
141.30 	time the title transfer is recorded; 
141.31 	(4) the voluntary or involuntary transfer of a motor vehicle between a husband and 
141.32 	wife in a divorce proceeding; or
141.33 	(5) the transfer of a motor vehicle by way of a gift to an organization that is exempt 
141.34 	from federal income taxation under section 501(c)(3) of the Internal Revenue Code, 
142.1 	as amended through December 31, 1996 2007, when the motor vehicle will be used 
142.2 	exclusively for religious, charitable, or educational purposes.

142.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

142.4 	Sec. 11. Minnesota Statutes 2006, section 297B.03, is amended to read:
142.5 	297B.03 EXEMPTIONS.
142.6 	There is specifically exempted from the provisions of this chapter and from 
142.7 	computation of the amount of tax imposed by it the following:
142.8 	(1) purchase or use, including use under a lease purchase agreement or installment 
142.9 	sales contract made pursuant to section 465.71, of any motor vehicle by the United States 
142.10 	and its agencies and instrumentalities and by any person described in and subject to the 
142.11 	conditions provided in section 297A.67, subdivision 11; 
142.12 	(2) purchase or use of any motor vehicle by any person who was a resident of 
142.13 	another state or country at the time of the purchase and who subsequently becomes a 
142.14 	resident of Minnesota, provided the purchase occurred more than 60 days prior to the date 
142.15 	such person began residing in the state of Minnesota and the motor vehicle was registered 
142.16 	in the person's name in the other state or country;
142.17 	(3) purchase or use of any motor vehicle by any person making a valid election to be 
142.18 	taxed under the provisions of section 297A.90; 
142.19 	(4) purchase or use of any motor vehicle previously registered in the state of 
142.20 	Minnesota when such transfer constitutes a transfer within the meaning of section 118, 
142.21 	331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal 
142.22 	Revenue Code of 1986, as amended through December 31, 1999 2007;
142.23 	(5) purchase or use of any vehicle owned by a resident of another state and leased 
142.24 	to a Minnesota-based private or for-hire carrier for regular use in the transportation of 
142.25 	persons or property in interstate commerce provided the vehicle is titled in the state of 
142.26 	the owner or secured party, and that state does not impose a sales tax or sales tax on 
142.27 	motor vehicles used in interstate commerce;
142.28 	(6) purchase or use of a motor vehicle by a private nonprofit or public educational 
142.29 	institution for use as an instructional aid in automotive training programs operated by the 
142.30 	institution. "Automotive training programs" includes motor vehicle body and mechanical 
142.31 	repair courses but does not include driver education programs;
142.32 	(7) purchase of a motor vehicle for use as an ambulance by an ambulance service 
142.33 	licensed under section 144E.10; 
143.1 	(8) purchase of a motor vehicle by or for a public library, as defined in section 
143.2 	134.001, subdivision 2, as a bookmobile or library delivery vehicle; 
143.3 	(9) purchase of a ready-mixed concrete truck;
143.4 	(10) purchase or use of a motor vehicle by a town for use exclusively for road 
143.5 	maintenance, including snowplows and dump trucks, but not including automobiles, 
143.6 	vans, or pickup trucks;
143.7 	(11) purchase or use of a motor vehicle by a corporation, society, association, 
143.8 	foundation, or institution organized and operated exclusively for charitable, religious, 
143.9 	or educational purposes, except a public school, university, or library, but only if the 
143.10 	vehicle is:
143.11 	(i) a truck, as defined in section 168.011, a bus, as defined in section 168.011, or a 
143.12 	passenger automobile, as defined in section 168.011, if the automobile is designed and 
143.13 	used for carrying more than nine persons including the driver; and 
143.14 	(ii) intended to be used primarily to transport tangible personal property or 
143.15 	individuals, other than employees, to whom the organization provides service in 
143.16 	performing its charitable, religious, or educational purpose;
143.17 	(12) purchase of a motor vehicle for use by a transit provider exclusively to provide 
143.18 	transit service is exempt if the transit provider is either (i) receiving financial assistance or 
143.19 	reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29, 
143.20 	473.388, or 473.405; 
143.21 	(13) purchase or use of a motor vehicle by a qualified business, as defined in section 
143.22 	469.310, located in a job opportunity building zone, if the motor vehicle is principally 
143.23 	garaged in the job opportunity building zone and is primarily used as part of or in direct 
143.24 	support of the person's operations carried on in the job opportunity building zone. The 
143.25 	exemption under this clause applies to sales, if the purchase was made and delivery 
143.26 	received during the duration of the job opportunity building zone. The exemption under 
143.27 	this clause also applies to any local sales and use tax. 

143.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

143.29 	ARTICLE 12
143.30 	DEPARTMENT SPECIAL TAXES AND FEES

143.31 	Section 1. Minnesota Statutes 2007 Supplement, section 115A.1314, subdivision 2, 
143.32 	is amended to read:
143.33 		Subd. 2.Creation of account; appropriations. (a) The electronic waste account 
143.34 	is established in the environmental fund. The commissioner of revenue must deposit 
144.1 	receipts from the fee established in subdivision 1 in the account. Any interest earned on 
144.2 	the account must be credited to the account. Money from other sources may be credited to 
144.3 	the account. Beginning in the second program year and continuing each program year 
144.4 	thereafter, as of the last day of each program year, the commissioner of revenue shall 
144.5 	determine the total amount of the variable fees that were collected. By July 15, 2009, and 
144.6 	each July 15 thereafter, the commissioner of the Pollution Control Agency shall inform 
144.7 	the commissioner of revenue of the amount necessary to operate the program in the new 
144.8 	program year. To the extent that the total fees collected by the commissioner of revenue in 
144.9 	connection with this section exceeds exceed the amount the commissioner of the Pollution 
144.10 	Control Agency determines necessary to operate the program for the new program 
144.11 	year, the commissioner of revenue shall refund on a pro rata basis, to all manufacturers 
144.12 	who paid any fees for the previous program year, the amount of fees collected by the 
144.13 	commissioner of revenue in excess of the amount necessary to operate the program for the 
144.14 	new program year. No individual refund is required of amounts of $100 or less for a fiscal 
144.15 	year. Manufacturers who report collections less than 50 percent of their obligation for the 
144.16 	previous program year are not eligible for a refund. Amounts not refunded pursuant to this 
144.17 	paragraph shall remain in the account. The commissioner of revenue shall issue refunds 
144.18 	by August 10. In lieu of issuing a refund, the commissioner of revenue may grant credit 
144.19 	against a manufacturer's variable fee due by September 1.
144.20 	(b) Until June 30, 2009, money in the account is annually appropriated to the 
144.21 	Pollution Control Agency:
144.22 	(1) for the purpose of implementing sections 115A.1312 to 115A.1330, including 
144.23 	transfer to the commissioner of revenue to carry out the department's duties under 
144.24 	section 115A.1320, subdivision 2, and transfer to the commissioner of administration for 
144.25 	responsibilities under section 115A.1324; and 
144.26 	(2) to the commissioner of the Pollution Control Agency to be distributed on a 
144.27 	competitive basis through contracts with counties outside the 11-county metropolitan 
144.28 	area, as defined in paragraph (c), and with private entities that collect for recycling 
144.29 	covered electronic devices in counties outside the 11-county metropolitan area, where the 
144.30 	collection and recycling is consistent with the respective county's solid waste plan, for 
144.31 	the purpose of carrying out the activities under sections 115A.1312 to 115A.1330. In 
144.32 	awarding competitive grants under this clause, the commissioner must give preference to 
144.33 	counties and private entities that are working cooperatively with manufacturers to help 
144.34 	them meet their recycling obligations under section 115A.1318, subdivision 1.
144.35 	(c) The 11-county metropolitan area consists of the counties of Anoka, Carver, 
144.36 	Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright.

145.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

145.2 	Sec. 2. Minnesota Statutes 2006, section 270C.56, subdivision 1, as amended by Laws 
145.3 	2008, chapter 154, article 15, section 7, is amended to read:
145.4 		Subdivision 1. Liability imposed. A person who, either singly or jointly with 
145.5 	others, has the control of, supervision of, or responsibility for filing returns or reports, 
145.6 	paying taxes, or collecting or withholding and remitting taxes and who fails to do so, or a 
145.7 	person who is liable under any other law, is liable for the payment of taxes, penalties, and 
145.8 	interest arising under chapters 295, 296A, 297A, 297F, and 297G, or sections 256.9658, 
145.9 	290.92, and 297E.02, and, for the taxes listed in this subdivision, the applicable penalties 
145.10 	for nonpayment under section 289A.60. 

145.11 	EFFECTIVE DATE. This section is effective for fees due after June 30, 2008.

145.12 	Sec. 3. Minnesota Statutes 2006, section 287.20, subdivision 3a, is amended to read:
145.13 		Subd. 3a.Designated transfer. "Designated transfer" means any of the following:
145.14 	(1) a transfer between (i) an entity owned by a sole owner, and (ii) that sole owner;
145.15 	(2) a transfer between (i) an entity in which a husband, a wife, or both are the sole 
145.16 	owners, and (ii) the husband, wife, or both;
145.17 	(3) a transfer between (i) an entity with multiple co-owners, and (ii) all of the 
145.18 	co-owners, so long as each of the co-owners maintains the same percentage ownership 
145.19 	interest in the transferred real property, whether directly or through ownership of a 
145.20 	percentage of the entity;
145.21 	(4) a transfer between (i) a revocable trust, and (ii) the grantor or grantors of the 
145.22 	revocable trust; or
145.23 	(5) a transfer of substantially all of the assets of one or more entities pursuant to a 
145.24 	reorganization, as defined in section 287.20, subdivision 9.
145.25 	For purposes of this definition of designated transfer, an interest in an entity that is 
145.26 	owned, directly or indirectly, by or for another entity shall be considered as being owned 
145.27 	proportionately by or for the owners of the other entity under provisions similar to those 
145.28 	of section 267(c)(1) and (5) of the Internal Revenue Code of 1986, as amended through 
145.29 	December 31, 2004.

145.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

145.31 	Sec. 4. Minnesota Statutes 2006, section 287.20, subdivision 9, is amended to read:
146.1 		Subd. 9.Reorganization. "Reorganization" means the transfer of substantially all 
146.2 	of the assets of a corporation, a limited liability company, or a partnership not in the usual 
146.3 	or regular course of business if at the time of the transfer the transfer qualifies as: (i) a 
146.4 	corporate reorganization under section 368(a) of the Internal Revenue Code of 1986, as 
146.5 	amended through December 31, 2004; or (ii) a transfer from a partnership to another 
146.6 	partnership when the transferee is treated as a continuation of the transferor under section 
146.7 	708 of the Internal Revenue Code of 1986, as amended through December 31, 2004.

146.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

146.9 	Sec. 5. Minnesota Statutes 2006, section 287.20, is amended by adding a subdivision 
146.10 	to read:
146.11 		Subd. 10.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
146.12 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
146.13 	31, 2007.

146.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

146.15 	Sec. 6. Minnesota Statutes 2006, section 295.50, subdivision 4, is amended to read:
146.16 		Subd. 4.Health care provider. (a) "Health care provider" means:
146.17 	(1) a person whose health care occupation is regulated or required to be regulated by 
146.18 	the state of Minnesota furnishing any or all of the following goods or services directly to a 
146.19 	patient or consumer: medical, surgical, optical, visual, dental, hearing, nursing services, 
146.20 	drugs, laboratory, diagnostic or therapeutic services;
146.21 	(2) a person who provides goods and services not listed in clause (1) that qualify for 
146.22 	reimbursement under the medical assistance program provided under chapter 256B;
146.23 	(3) a staff model health plan company;
146.24 	(4) an ambulance service required to be licensed; or
146.25 	(5) a person who sells or repairs hearing aids and related equipment or prescription 
146.26 	eyewear.
146.27 	(b) Health care provider does not include:
146.28 	(1) hospitals; medical supplies distributors, except as specified under paragraph 
146.29 	(a), clause (5); nursing homes licensed under chapter 144A or licensed in any other 
146.30 	jurisdiction; wholesale drug distributors; pharmacies; surgical centers; bus and taxicab 
146.31 	transportation, or any other providers of transportation services other than ambulance 
146.32 	services required to be licensed; supervised living facilities for persons with developmental 
146.33 	disabilities, licensed under Minnesota Rules, parts 4665.0100 to 4665.9900; housing 
147.1 	with services establishments required to be registered under chapter 144D; board 
147.2 	and lodging establishments providing only custodial services that are licensed under 
147.3 	chapter 157 and registered under section 157.17 to provide supportive services or health 
147.4 	supervision services; adult foster homes as defined in Minnesota Rules, part 9555.5105; 
147.5 	day training and habilitation services for adults with developmental disabilities as defined 
147.6 	in section 252.41, subdivision 3; boarding care homes, as defined in Minnesota Rules, part 
147.7 	4655.0100; and adult day care centers as defined in Minnesota Rules, part 9555.9600; 
147.8 	(2) home health agencies as defined in Minnesota Rules, part 9505.0175, subpart 
147.9 	15; a person providing personal care services and supervision of personal care services 
147.10 	as defined in Minnesota Rules, part 9505.0335; a person providing private duty nursing 
147.11 	services as defined in Minnesota Rules, part 9505.0360; and home care providers required 
147.12 	to be licensed under chapter 144A;
147.13 	(3) a person who employs health care providers solely for the purpose of providing 
147.14 	patient services to its employees; and
147.15 	(4) an educational institution that employs health care providers solely for the 
147.16 	purpose of providing patient services to its students if the institution does not receive fee 
147.17 	for service payments or payments for extended coverage; and
147.18 	(5) a person who receives all payments for patient services from health care 
147.19 	providers, surgical centers, or hospitals for goods and services that are taxable to the 
147.20 	paying health care providers, surgical centers, or hospitals, as provided under section 
147.21 	295.53, subdivision 1, clause (3) or (4), or from a source of funds that is exempt from tax 
147.22 	under this chapter.

147.23 	EFFECTIVE DATE. Paragraph (b), clause (1), is effective the day following 
147.24 	final enactment. Paragraph (b), clause (5), is effective for payments received after June 
147.25 	30, 2008.

147.26 	Sec. 7. Minnesota Statutes 2006, section 295.52, subdivision 4, as amended by Laws 
147.27 	2008, chapter 154, article 14, section 5, is amended to read:
147.28 		Subd. 4. Use tax; prescription drugs. (a) A person that receives prescription drugs 
147.29 	for resale or use in Minnesota, other than from a wholesale drug distributor that is subject 
147.30 	to tax under subdivision 3, is subject to a tax equal to the price paid to the wholesale drug 
147.31 	distributor multiplied by the tax percentage specified in this section. When a person 
147.32 	manufactures drugs that have not been subject to tax under subdivision 3, the person is 
147.33 	subject to tax equal to the cost incurred by the person to manufacture the drugs multiplied 
147.34 	by the tax percentage specified in this section. Liability for the tax is incurred when 
147.35 	prescription drugs are received or delivered in Minnesota by the person. 
148.1 	(b) A tax imposed under this subdivision does not apply to purchases by an 
148.2 	individual for personal consumption. 

148.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

148.4 	Sec. 8. Minnesota Statutes 2006, section 295.53, subdivision 4a, is amended to read:
148.5 		Subd. 4a.Credit for research. (a) In addition to the exemptions allowed under 
148.6 	subdivision 1, a hospital or health care provider may claim an annual credit against the 
148.7 	total amount of tax, if any, the hospital or health care provider owes for that calendar year 
148.8 	under sections 295.50 to 295.57. The credit shall equal 2.5 percent of revenues for patient 
148.9 	services used to fund expenditures for qualifying research conducted by an allowable 
148.10 	research program. The amount of the credit shall not exceed the tax liability of the hospital 
148.11 	or health care provider under sections 295.50 to 295.57. 
148.12 	(b) For purposes of this subdivision, the following requirements apply:
148.13 	(1) expenditures must be for program costs of qualifying research conducted by 
148.14 	an allowable research program;
148.15 	(2) an allowable research program must be a formal program of medical and health 
148.16 	care research conducted by an entity which is exempt under section 501(c)(3) of the 
148.17 	Internal Revenue Code of 1986, as amended through December 31, 2007, or is owned and 
148.18 	operated under authority of a governmental unit;
148.19 	(3) qualifying research must:
148.20 	(A) be approved in writing by the governing body of the hospital or health care 
148.21 	provider which is taking the deduction under this subdivision;
148.22 	(B) have as its purpose the development of new knowledge in basic or applied 
148.23 	science relating to the diagnosis and treatment of conditions affecting the human body;
148.24 	(C) be subject to review by individuals with expertise in the subject matter of the 
148.25 	proposed study but who have no financial interest in the proposed study and are not 
148.26 	involved in the conduct of the proposed study; and
148.27 	(D) be subject to review and supervision by an institutional review board operating 
148.28 	in conformity with federal regulations if the research involves human subjects or 
148.29 	an institutional animal care and use committee operating in conformity with federal 
148.30 	regulations if the research involves animal subjects. Research expenses are not exempt if 
148.31 	the study is a routine evaluation of health care methods or products used in a particular 
148.32 	setting conducted for the purpose of making a management decision. Costs of clinical 
148.33 	research activities paid directly for the benefit of an individual patient are excluded from 
148.34 	this exemption. Basic research in fields including biochemistry, molecular biology, and 
148.35 	physiology are also included if such programs are subject to a peer review process.
149.1 	(c) No credit shall be allowed under this subdivision for any revenue received by the 
149.2 	hospital or health care provider in the form of a grant, gift, or otherwise, whether from a 
149.3 	government or nongovernment source, on which the tax liability under section 295.52 is 
149.4 	not imposed. 
149.5 	(d) The taxpayer shall apply for the credit under this section on the annual return 
149.6 	under section 295.55, subdivision 5. 
149.7 	(e) Beginning September 1, 2001, if the actual or estimated amount paid under 
149.8 	this section for the calendar year exceeds $2,500,000, the commissioner of finance shall 
149.9 	determine the rate of the research credit for the following calendar year to the nearest 
149.10 	one-half percent so that refunds paid under this section will most closely equal $2,500,000. 
149.11 	The commissioner of finance shall publish in the State Register by October 1 of each year 
149.12 	the rate of the credit for the following calendar year. A determination under this section 
149.13 	is not subject to the rulemaking provisions of chapter 14.

149.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

149.15 	Sec. 9. Minnesota Statutes 2006, section 296A.07, subdivision 4, is amended to read:
149.16 		Subd. 4.Exemptions. The provisions of subdivision 1 do not apply to gasoline or 
149.17 	denatured ethanol purchased by:
149.18 	(1) a transit system or transit provider receiving financial assistance or 
149.19 	reimbursement under section 174.24, 256B.0625, subdivision 17, or 473.384; or
149.20 	(2) an ambulance service licensed under chapter 144E; or
149.21 	(3) a licensed distributor to be delivered to a terminal for use in blending.

149.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

149.23 	Sec. 10. Minnesota Statutes 2006, section 296A.08, subdivision 3, is amended to read:
149.24 		Subd. 3.Exemptions. The provisions of subdivisions 1 and 2 do not apply to 
149.25 	special fuel or alternative fuels purchased by:
149.26 	(1) a transit system or transit provider receiving financial assistance or 
149.27 	reimbursement under section 174.24, 256B.0625, subdivision 17, or 473.384; or
149.28 	(2) an ambulance service licensed under chapter 144E; or
149.29 	(3) a licensed distributor to be delivered to a terminal for use in blending.

149.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

149.31 	Sec. 11. Minnesota Statutes 2006, section 296A.16, subdivision 2, is amended to read:
150.1 		Subd. 2.Fuel used in other vehicle; claim for refund. Any person who buys and 
150.2 	uses gasoline for a qualifying purpose other than use in motor vehicles, snowmobiles 
150.3 	except as provided in clause (2), or motorboats, or special fuel for a qualifying purpose 
150.4 	other than use in licensed motor vehicles, and who paid the tax directly or indirectly 
150.5 	through the amount of the tax being included in the price of the gasoline or special fuel, or 
150.6 	otherwise, shall be reimbursed and repaid the amount of the tax paid upon filing with the 
150.7 	commissioner a claim for refund in the form and manner prescribed by the commissioner, 
150.8 	and containing the information the commissioner shall require. By signing any such claim 
150.9 	which is false or fraudulent, the applicant shall be subject to the penalties provided in this 
150.10 	chapter for knowingly making a false claim. The claim shall set forth the total amount 
150.11 	of the gasoline so purchased and used by the applicant other than in motor vehicles, or 
150.12 	special fuel purchased and used by the applicant other than in licensed motor vehicles, 
150.13 	and shall state when and for what purpose it was used. When a claim contains an error 
150.14 	in computation or preparation, the commissioner is authorized to adjust the claim in 
150.15 	accordance with the evidence shown on the claim or other information available to the 
150.16 	commissioner. The commissioner, on being satisfied that the claimant is entitled to the 
150.17 	payments, shall approve the claim and transmit it to the commissioner of finance. The 
150.18 	words "gasoline" or "special fuel" as used in this subdivision do not include aviation 
150.19 	gasoline or special fuel for aircraft. Gasoline or special fuel bought and used for a 
150.20 	"qualifying purpose" means:
150.21 	(1) Gasoline or special fuel used in carrying on a trade or business, used on a farm 
150.22 	situated in Minnesota, and used for a farming purpose. "Farm" and "farming purpose" 
150.23 	have the meanings given them in section 6420(c)(2), (3), and (4) of the Internal Revenue 
150.24 	Code of 1986, as amended through December 31, 1997 2007.
150.25 	(2) Gasoline or special fuel used for off-highway business use.
150.26 	(i) "Off-highway business use" means any use off the public highway by a person in 
150.27 	that person's trade, business, or activity for the production of income.
150.28 	(ii) Off-highway business use includes use of a passenger snowmobile off the public 
150.29 	highways as part of the operations of a resort as defined in section 157.15, subdivision 11; 
150.30 	and use of gasoline or special fuel to operate a power takeoff unit on a vehicle, but not 
150.31 	including fuel consumed during idling time. 
150.32 	(iii) Off-highway business use does not include use as a fuel in a motor vehicle 
150.33 	which, at the time of use, is registered or is required to be registered for highway use under 
150.34 	the laws of any state or foreign country; or use of a licensed motor vehicle fuel tank in lieu 
150.35 	of a separate storage tank for storing fuel to be used for a qualifying purpose, as defined in 
151.1 	this section. Fuel purchased to be used for a qualifying purpose cannot be placed in the 
151.2 	fuel tank of a licensed motor vehicle and must be stored in a separate supply tank.
151.3 	(3) Gasoline or special fuel placed in the fuel tanks of new motor vehicles, 
151.4 	manufactured in Minnesota, and shipped by interstate carrier to destinations in other 
151.5 	states or foreign countries.

151.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

151.7 	Sec. 12. Minnesota Statutes 2006, section 297F.01, subdivision 8, is amended to read:
151.8 		Subd. 8.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
151.9 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
151.10 	31, 1996 2007.

151.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

151.12 	Sec. 13. Minnesota Statutes 2006, section 297F.21, subdivision 1, is amended to read:
151.13 		Subdivision 1.Contraband defined. The following are declared to be contraband 
151.14 	and therefore subject to civil and criminal penalties under this chapter:
151.15 	(a) Cigarette packages which do not have stamps affixed to them as provided in this 
151.16 	chapter, including but not limited to (i) packages with illegible stamps and packages with 
151.17 	stamps that are not complete or whole even if the stamps are legible, and (ii) all devices 
151.18 	for the vending of cigarettes in which packages as defined in item (i) are found, including 
151.19 	all contents contained within the devices.
151.20 	(b) A device for the vending of cigarettes and all packages of cigarettes, where the 
151.21 	device does not afford at least partial visibility of contents. Where any package exposed 
151.22 	to view does not carry the stamp required by this chapter, it shall be presumed that all 
151.23 	packages contained in the device are unstamped and contraband.
151.24 	(c) A device for the vending of cigarettes to which the commissioner or authorized 
151.25 	agents have been denied access for the inspection of contents. In lieu of seizure, the 
151.26 	commissioner or an agent may seal the device to prevent its use until inspection of 
151.27 	contents is permitted.
151.28 	(d) A device for the vending of cigarettes which does not carry the name and address 
151.29 	of the owner, plainly marked and visible from the front of the machine.
151.30 	(e) A device including, but not limited to, motor vehicles, trailers, snowmobiles, 
151.31 	airplanes, and boats used with the knowledge of the owner or of a person operating with 
151.32 	the consent of the owner for the storage or transportation of more than 5,000 cigarettes 
151.33 	which are contraband under this subdivision. When cigarettes are being transported in 
152.1 	the course of interstate commerce, or are in movement from either a public warehouse to 
152.2 	a distributor upon orders from a manufacturer or distributor, or from one distributor to 
152.3 	another, the cigarettes are not contraband, notwithstanding the provisions of clause (a).
152.4 	(f) A device including, but not limited to, motor vehicles, trailers, snowmobiles, 
152.5 	airplanes, and boats used with the knowledge of the owner, or of a person operating with 
152.6 	the consent of the owner, for the storage or transportation of untaxed tobacco products 
152.7 	intended for sale in Minnesota other than those in the possession of a licensed distributor 
152.8 	on or before the due date for payment of the tax under section 297F.09, subdivision 2. 
152.9 	(g) Cigarette packages or tobacco products obtained from an unlicensed seller.
152.10 	(h) Cigarette packages offered for sale or held as inventory in violation of section 
152.11 	297F.20, subdivision 7. 
152.12 	(i) Tobacco products on which the tax has not been paid by a licensed distributor.
152.13 	(j) Any cigarette packages or tobacco products offered for sale or held as inventory 
152.14 	for which there is not an invoice from a licensed seller as required under section 297F.13, 
152.15 	subdivision 4. 
152.16 	(k) Cigarette packages which have been imported into the United States in violation 
152.17 	of United States Code, title 26, section 5754. All cigarettes held in violation of that section 
152.18 	shall be presumed to have entered the United States after December 31, 1999, in the 
152.19 	absence of proof to the contrary.
152.20 	(l) Cigarettes and cigarette packaging which are not in compliance with fire safety 
152.21 	requirements of sections 299F.850 to 299F.859.

152.22 	EFFECTIVE DATE. Property added in paragraph (l) of this section is contraband 
152.23 	effective December 1, 2008.

152.24 	Sec. 14. Minnesota Statutes 2006, section 297G.01, subdivision 9, is amended to read:
152.25 		Subd. 9.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
152.26 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
152.27 	31, 1996 2007.

152.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

152.29 	Sec. 15. Minnesota Statutes 2006, section 297H.09, is amended to read:
152.30 	297H.09 BAD DEBTS.
152.31 	The remitter of the solid waste management tax may offset against the tax payable, 
152.32 	with respect to any reporting period, the amount of tax imposed by this chapter previously 
152.33 	remitted to the commissioner of revenue which qualified as a bad debt under section 
153.1 	166(a) of the Internal Revenue Code, as amended through December 31, 1993 2007, 
153.2 	during such reporting period, but only in proportion to the portion of such debt which 
153.3 	became uncollectable. This section applies only to accrual basis remitters that remit tax 
153.4 	before it is collected and to the extent they are unable to collect the tax.

153.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

153.6 	Sec. 16. Minnesota Statutes 2006, section 297I.05, subdivision 12, is amended to read:
153.7 		Subd. 12.Other entities. (a) A tax is imposed equal to two percent of:
153.8 	(1) gross premiums less return premiums written for risks resident or located in 
153.9 	Minnesota by a risk retention group;
153.10 	(2) gross premiums less return premiums received by an attorney in fact acting 
153.11 	in accordance with chapter 71A;
153.12 	(3) gross premiums less return premiums received pursuant to assigned risk policies 
153.13 	and contracts of coverage under chapter 79;
153.14 	(4) the direct funded premium received by the reinsurance association under section 
153.15 	79.34 from self-insurers approved under section 176.181 and political subdivisions that 
153.16 	self-insure; and
153.17 	(5) gross premiums less return premiums received by a nonprofit health service plan 
153.18 	corporation authorized under chapter 62C; and
153.19 	(6) gross premiums less return premiums paid to an insurer other than a licensed 
153.20 	insurance company or a surplus lines licensee for coverage of risks resident or located in 
153.21 	Minnesota by a purchasing group or any members of the purchasing group to a broker or 
153.22 	agent for the purchasing group.
153.23 	(b) A tax is imposed on a joint self-insurance plan operating under chapter 60F. The 
153.24 	rate of tax is equal to two percent of the total amount of claims paid during the fund year, 
153.25 	with no deduction for claims wholly or partially reimbursed through stop-loss insurance.
153.26 	(c) A tax is imposed on a joint self-insurance plan operating under chapter 62H. 
153.27 	The rate of tax is equal to two percent of the total amount of claims paid during the 
153.28 	fund's fiscal year, with no deduction for claims wholly or partially reimbursed through 
153.29 	stop-loss insurance.
153.30 	(d) A tax is imposed equal to the tax imposed under section 297I.05, subdivision 5, 
153.31 	on the gross premiums less return premiums on all coverages received by an accountable 
153.32 	provider network or agents of an accountable provider network in Minnesota, in cash or 
153.33 	otherwise, during the year. 

153.34 	EFFECTIVE DATE. This section is effective the day following final enactment.

154.1 	ARTICLE 13
154.2 	DEPARTMENT PROPERTY TAXES AND AIDS

154.3 	Section 1. Minnesota Statutes 2006, section 13.51, subdivision 3, is amended to read:
154.4 		Subd. 3.Data on income of individuals. Income information on individuals 
154.5 	collected and maintained by political subdivisions to determine eligibility of property for 
154.6 	class 4d under section 273.126 sections 273.128 and 273.13, is private data on individuals 
154.7 	as defined in section 13.02, subdivision 12. 

154.8 	EFFECTIVE DATE. This section is effective for data collected or maintained by 
154.9 	political subdivisions beginning the day following final enactment.

154.10 	Sec. 2. Minnesota Statutes 2006, section 13.585, subdivision 5, is amended to read:
154.11 		Subd. 5.Private data on individuals. Income information on individuals collected 
154.12 	and maintained by a housing agency to determine eligibility of property for class 4d 
154.13 	under sections 273.126 273.128 and 273.13, is private data on individuals as defined in 
154.14 	section 13.02, subdivision 12. The data may be disclosed to the county and local assessors 
154.15 	responsible for determining eligibility of the property for classification 4d. 

154.16 	EFFECTIVE DATE. This section is effective for data collected or maintained by a 
154.17 	housing agency beginning the day following final enactment.

154.18 	Sec. 3. Minnesota Statutes 2006, section 272.02, subdivision 13, is amended to read:
154.19 		Subd. 13.Emergency shelters for victims of domestic abuse. Property used in 
154.20 	a continuous program to provide emergency shelter for victims of domestic abuse is 
154.21 	exempt, provided the organization that owns and sponsors the shelter is exempt from 
154.22 	federal income taxation pursuant to section 501(c)(3) of the Internal Revenue Code 
154.23 	of 1986, as amended through December 31, 1992, notwithstanding the fact that the 
154.24 	sponsoring organization receives funding under Section 8 of the United States Housing 
154.25 	Act of 1937, as amended.

154.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

154.27 	Sec. 4. Minnesota Statutes 2006, section 272.02, subdivision 20, is amended to read:
154.28 		Subd. 20.Transitional housing facilities. Transitional housing facilities are 
154.29 	exempt. "Transitional housing facility" means a facility that meets the following 
154.30 	requirements. (i) It provides temporary housing to individuals, couples, or families. (ii) 
154.31 	It has the purpose of reuniting families and enabling parents or individuals to obtain 
155.1 	self-sufficiency, advance their education, get job training, or become employed in jobs that 
155.2 	provide a living wage. (iii) It provides support services such as child care, work readiness 
155.3 	training, and career development counseling; and a self-sufficiency program with periodic 
155.4 	monitoring of each resident's progress in completing the program's goals. (iv) It provides 
155.5 	services to a resident of the facility for at least three months but no longer than three 
155.6 	years, except residents enrolled in an educational or vocational institution or job training 
155.7 	program. These residents may receive services during the time they are enrolled but in no 
155.8 	event longer than four years. (v) It is owned and operated or under lease from a unit of 
155.9 	government or governmental agency under a property disposition program and operated by 
155.10 	one or more organizations exempt from federal income tax under section 501(c)(3) of the 
155.11 	Internal Revenue Code of 1986, as amended through December 31, 1992. This exemption 
155.12 	applies notwithstanding the fact that the sponsoring organization receives financing by a 
155.13 	direct federal loan or federally insured loan or a loan made by the Minnesota Housing 
155.14 	Finance Agency under the provisions of either Title II of the National Housing Act or the 
155.15 	Minnesota Housing Finance Agency Law of 1971, as amended through December 31, 
155.16 	2007, or rules promulgated by the agency pursuant to it, and notwithstanding the fact 
155.17 	that the sponsoring organization receives funding under Section 8 of the United States 
155.18 	Housing Act of 1937, as amended through December 31, 2007.

155.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

155.20 	Sec. 5. Minnesota Statutes 2006, section 272.02, subdivision 21, is amended to read:
155.21 		Subd. 21.Property used to provide computing resources to University of 
155.22 	Minnesota. Real and personal property, including leasehold or other personal property 
155.23 	interests, is exempt if it is owned and operated by a corporation of which more than 50 
155.24 	percent of the total voting power of the stock of the corporation is owned collectively by: 
155.25 	(i) the Board of Regents of the University of Minnesota, (ii) the University of Minnesota 
155.26 	Foundation, an organization exempt from federal income taxation under section 501(c)(3) 
155.27 	of the Internal Revenue Code of 1986, as amended through December 31, 1992, and (iii) 
155.28 	a corporation organized under chapter 317A, which by its articles of incorporation is 
155.29 	prohibited from providing pecuniary gain to any person or entity other than the regents 
155.30 	of the University of Minnesota; which property is used primarily to manage or provide 
155.31 	goods, services, or facilities utilizing or relating to large-scale advanced scientific 
155.32 	computing resources to the regents of the University of Minnesota and others.

155.33 	EFFECTIVE DATE. This section is effective the day following final enactment.

156.1 	Sec. 6. Minnesota Statutes 2006, section 272.02, subdivision 27, is amended to read:
156.2 		Subd. 27.Superior National Forest; recreational property for use by disabled 
156.3 	veterans. Real and personal property is exempt if it is located in the Superior National 
156.4 	Forest, and owned or leased and operated by a nonprofit organization that is exempt 
156.5 	from federal income taxation under section 501(c)(3) of the Internal Revenue Code of 
156.6 	1986, as amended through December 31, 1992, and primarily used to provide recreational 
156.7 	opportunities for disabled veterans and their families.

156.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

156.9 	Sec. 7. Minnesota Statutes 2006, section 272.02, subdivision 31, is amended to read:
156.10 		Subd. 31.Business incubator property. Property owned by a nonprofit charitable 
156.11 	organization that qualifies for tax exemption under section 501(c)(3) of the Internal 
156.12 	Revenue Code of 1986, as amended through December 31, 1997, that is intended to be 
156.13 	used as a business incubator in a high-unemployment county, is exempt. As used in this 
156.14 	subdivision, a "business incubator" is a facility used for the development of nonretail 
156.15 	businesses, offering access to equipment, space, services, and advice to the tenant 
156.16 	businesses, for the purpose of encouraging economic development, diversification, and 
156.17 	job creation in the area served by the organization, and "high-unemployment county" is a 
156.18 	county that had an average annual unemployment rate of 7.9 percent or greater in 1997. 
156.19 	Property that qualifies for the exemption under this subdivision is limited to no more than 
156.20 	two contiguous parcels and structures that do not exceed in the aggregate 40,000 square 
156.21 	feet. This exemption expires after taxes payable in 2011.

156.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

156.23 	Sec. 8. Minnesota Statutes 2006, section 272.02, subdivision 38, is amended to read:
156.24 		Subd. 38.Conversion to exempt or taxable uses. (a) Any property, except 
156.25 	property taxed as personal property under section 273.125, that is exempt from taxation on 
156.26 	January 2 of any year which, due to sale or other reason, loses its exemption prior to July 1 
156.27 	of any year, shall be placed on the current assessment rolls for that year.
156.28 	The valuation shall be determined with respect to its value on January 2 of such 
156.29 	year. The classification shall be based upon the use to which the property was put by the 
156.30 	purchaser, or in the event the purchaser has not utilized the property by July 1, the intended 
156.31 	use of the property, determined by the county assessor, based upon all relevant facts.
156.32 	(b) Property, except property taxed as personal property under section 273.125, that 
156.33 	is subject to tax on January 2 that is acquired before July 1 of the year is exempt for that 
157.1 	assessment year if the property is to be used for an exempt purpose under subdivisions 2 
157.2 	to 8.
157.3 	(c) Property which forfeits to the state for nonpayment of real estate taxes on or 
157.4 	before December 31 in an assessment year, shall be removed from the assessment rolls for 
157.5 	that assessment year. Forfeited property that is repurchased, or sold at a public or private 
157.6 	sale, on or before December 31 of an assessment year shall be placed on the assessment 
157.7 	rolls for that year's assessment.

157.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

157.9 	Sec. 9. Minnesota Statutes 2006, section 272.02, subdivision 49, is amended to read:
157.10 		Subd. 49.Agricultural historical society property. Property is exempt from 
157.11 	taxation if it is owned by a nonprofit charitable or educational organization that qualifies 
157.12 	for exemption under section 501(c)(3) of the Internal Revenue Code of 1986, as amended 
157.13 	through December 31, 2000, and meets the following criteria:
157.14 	(1) the property is primarily used for storing and exhibiting tools, equipment, and 
157.15 	artifacts useful in providing an understanding of local or regional agricultural history. 
157.16 	Primary use is determined each year based on the number of days the property is used 
157.17 	solely for storage and exhibition purposes;
157.18 	(2) the property is limited to a maximum of 20 acres per owner per county, but 
157.19 	includes the land and any taxable structures, fixtures, and equipment on the land;
157.20 	(3) the property is not used for a revenue-producing activity for more than ten days 
157.21 	in each calendar year; and
157.22 	(4) the property is not used for residential purposes on either a temporary or 
157.23 	permanent basis.

157.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

157.25 	Sec. 10. Minnesota Statutes 2006, section 272.03, subdivision 3, is amended to read:
157.26 		Subd. 3.Construction of terms. For the purposes of chapters 270 to 284, unless a 
157.27 	different meaning is indicated by the context, the words, phrases, and terms defined in 
157.28 	subdivisions 4 to 1113 shall have the meanings given them.

157.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

157.30 	Sec. 11. Minnesota Statutes 2006, section 272.03, is amended by adding a subdivision 
157.31 	to read:
158.1 		Subd. 13.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
158.2 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
158.3 	31, 2007.

158.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

158.5 	Sec. 12. [273.105] INTERNAL REVENUE CODE.
158.6 	Unless specifically defined otherwise, for purposes of this chapter, "Internal Revenue 
158.7 	Code" means the Internal Revenue Code as defined under section 272.03, subdivision 13.

158.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

158.9 	Sec. 13. Minnesota Statutes 2006, section 273.11, subdivision 8, is amended to read:
158.10 		Subd. 8.Limited equity cooperative apartments. For the purposes of this 
158.11 	subdivision, the terms defined in this subdivision have the meanings given them.
158.12 	A "limited equity cooperative" is a corporation organized under chapter 308A or 
158.13 	308B, which has as its primary purpose the provision of housing and related services to 
158.14 	its members which meets one of the following criteria with respect to the income of its 
158.15 	members: (1) a minimum of 75 percent of members must have incomes at or less than 
158.16 	90 percent of area median income, (2) a minimum of 40 percent of members must have 
158.17 	incomes at or less than 60 percent of area median income, or (3) a minimum of 20 percent 
158.18 	of members must have incomes at or less than 50 percent of area median income. For 
158.19 	purposes of this clause, "member income" shall mean the income of a member existing at 
158.20 	the time the member acquires cooperative membership, and median income shall mean 
158.21 	the St. Paul-Minneapolis metropolitan area median income as determined by the United 
158.22 	States Department of Housing and Urban Development. It must also meet the following 
158.23 	requirements:
158.24 	(a) The articles of incorporation set the sale price of occupancy entitling cooperative 
158.25 	shares or memberships at no more than a transfer value determined as provided in the 
158.26 	articles. That value may not exceed the sum of the following:
158.27 	(1) the consideration paid for the membership or shares by the first occupant of the 
158.28 	unit, as shown in the records of the corporation;
158.29 	(2) the fair market value, as shown in the records of the corporation, of any 
158.30 	improvements to the real property that were installed at the sole expense of the member 
158.31 	with the prior approval of the board of directors;
158.32 	(3) accumulated interest, or an inflation allowance not to exceed the greater of a ten 
158.33 	percent annual noncompounded increase on the consideration paid for the membership or 
159.1 	share by the first occupant of the unit, or the amount that would have been paid on that 
159.2 	consideration if interest had been paid on it at the rate of the percentage increase in the 
159.3 	revised Consumer Price Index for All Urban Consumers for the Minneapolis-St. Paul 
159.4 	metropolitan area prepared by the United States Department of Labor, provided that the 
159.5 	amount determined pursuant to this clause may not exceed $500 for each year or fraction 
159.6 	of a year the membership or share was owned; plus
159.7 	(4) real property capital contributions shown in the records of the corporation to 
159.8 	have been paid by the transferor member and previous holders of the same membership, 
159.9 	or of separate memberships that had entitled occupancy to the unit of the member 
159.10 	involved. These contributions include contributions to a corporate reserve account the 
159.11 	use of which is restricted to real property improvements or acquisitions, contributions to 
159.12 	the corporation which are used for real property improvements or acquisitions, and the 
159.13 	amount of principal amortized by the corporation on its indebtedness due to the financing 
159.14 	of real property acquisition or improvement or the averaging of principal paid by the 
159.15 	corporation over the term of its real property-related indebtedness.
159.16 	(b) The articles of incorporation require that the board of directors limit the purchase 
159.17 	price of stock or membership interests for new member-occupants or resident shareholders 
159.18 	to an amount which does not exceed the transfer value for the membership or stock as 
159.19 	defined in clause (a).
159.20 	(c) The articles of incorporation require that the total distribution out of capital to a 
159.21 	member shall not exceed that transfer value.
159.22 	(d) The articles of incorporation require that upon liquidation of the corporation any 
159.23 	assets remaining after retirement of corporate debts and distribution to members will 
159.24 	be conveyed to a charitable organization described in section 501(c)(3) of the Internal 
159.25 	Revenue Code of 1986, as amended through December 31, 1992, or a public agency.
159.26 	A "limited equity cooperative apartment" is a dwelling unit owned by a limited 
159.27 	equity cooperative.
159.28 	"Occupancy entitling cooperative share or membership" is the ownership interest 
159.29 	in a cooperative organization which entitles the holder to an exclusive right to occupy a 
159.30 	dwelling unit owned or leased by the cooperative.
159.31 	For purposes of taxation, the assessor shall value a unit owned by a limited equity 
159.32 	cooperative at the lesser of its market value or the value determined by capitalizing the net 
159.33 	operating income of a comparable apartment operated on a rental basis at the capitalization 
159.34 	rate used in valuing comparable buildings that are not limited equity cooperatives. If a 
159.35 	cooperative fails to operate in accordance with the provisions of clauses (a) to (d), the 
159.36 	property shall be subject to additional property taxes in the amount of the difference 
160.1 	between the taxes determined in accordance with this subdivision for the last ten years that 
160.2 	the property had been assessed pursuant to this subdivision and the amount that would 
160.3 	have been paid if the provisions of this subdivision had not applied to it. The additional 
160.4 	taxes, plus interest at the rate specified in section 549.09, shall be extended against the 
160.5 	property on the tax list for the current year.

160.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

160.7 	Sec. 14. Minnesota Statutes 2007 Supplement, section 273.1231, subdivision 7, 
160.8 	is amended to read:
160.9 		Subd. 7. Reassessed market value.  "Reassessed market value" means the taxable 
160.10 	market value of the property established for the January 2 assessment in the year that the 
160.11 	disaster or destruction occurs, as adjusted by the county assessor or the commissioner of 
160.12 	revenue to reflect the loss in market value caused by the damage. As soon as practical, the 
160.13 	assessor or commissioner shall report the reassessed value to the county auditor.

160.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

160.15 	Sec. 15. Minnesota Statutes 2007 Supplement, section 273.1231, is amended by adding 
160.16 	a subdivision to read:
160.17 		Subd. 8.Utility property. "Utility property" means property appraised and 
160.18 	classified for tax purposes by the commissioner of revenue and the values are provided to 
160.19 	the city or county assessor by order under sections 273.33 to 273.3711.

160.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

160.21 	Sec. 16. Minnesota Statutes 2007 Supplement, section 273.1232, subdivision 1, 
160.22 	is amended to read:
160.23 		Subdivision 1. Reassessments required.  For the purposes of sections 273.1231 
160.24 	to 273.1235, the county assessor must reassess all damaged property in a disaster or 
160.25 	emergency area, and the county assessor orexcept that the commissioner of revenue 
160.26 	as appropriate shall reassess all property for which an application is submitted to the 
160.27 	commissioner under section 273.1233 or 273.1235. As soon as practical, the assessor or 
160.28 	commissioner of revenue must report the reassessed value to the county auditor. 

160.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

161.1 	Sec. 17. Minnesota Statutes 2007 Supplement, section 273.1233, subdivision 1, 
161.2 	is amended to read:
161.3 		Subdivision 1. Abatement authorization.  (a) Notwithstanding section 375.192, 
161.4 	a county board may grant an abatement of net tax for homestead and nonhomestead 
161.5 	property under the provisions of this paragraph for taxes payable in the year in which 
161.6 	the destruction occurs if: 
161.7 	(1) the owner submits a written application to the county assessor as soon as 
161.8 	practical after the damage has occurred; 
161.9 	(2) the owner submits a written application to the county board as soon as practical 
161.10 	after the damage has occurred; and 
161.11 	(3) the county assessor determines that 50 percent or more of a homestead dwelling 
161.12 	or other building has been (i) unintentionally or accidentally destroyed, or (ii) destroyed 
161.13 	by arson or vandalism by someone other than the owner. 
161.14 	Abatements granted under this paragraph are not subject to approval by the 
161.15 	commissioner of revenue. 
161.16 	(b) Notwithstanding sections 270C.86 and 375.192, the commissioner of revenue 
161.17 	may grant an abatement of net tax for utility property that the commissioner is required by 
161.18 	law to appraise for taxes payable in the year in which the destruction occurs if: 
161.19 	(1) the owner submits a written application to the commissioner as soon as practical 
161.20 	after the damage has occurred; 
161.21 	(2) the owner forwards a copy of the written application to the county board as soon 
161.22 	as practical after the damage has occurred; and 
161.23 	(3) the commissioner determines that 50 percent or more of the property has been 
161.24 	(i) unintentionally or accidentally destroyed, or (ii) destroyed by arson or vandalism by 
161.25 	someone other than the owner. 
161.26 	Abatements granted under this paragraph are not subject to approval by the county 
161.27 	board of the county where the property is located. 

161.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

161.29 	Sec. 18. Minnesota Statutes 2007 Supplement, section 273.1233, subdivision 3, 
161.30 	is amended to read:
161.31 		Subd. 3. Reimbursement, levy, and appropriation.  (a) If the destruction occurs as 
161.32 	a result of a disaster or emergency and the property is located in a disaster or emergency 
161.33 	area, the county auditor shall certify the abatements granted under this section to the 
161.34 	commissioner of revenue for reimbursement to each taxing jurisdiction in which the 
161.35 	damaged property is located. The commissioner shall make the payments to the taxing 
162.1 	jurisdictions containing the property, other than school districts and the state, at the time 
162.2 	distributions are made under section 473H.10, subdivision 3. Reimbursements to school 
162.3 	districts shall be made as provided in section 273.1392. No reimbursement is to be paid 
162.4 	to the state treasury. 
162.5 	(b) Local taxing authorities may levy in the following year the amount of 
162.6 	unreimbursed tax dollars lost as a result of the reductions granted pursuant to this 
162.7 	subdivisionsection and sections 273.1234 and 273.1235 outside of any statutory 
162.8 	restriction as to levy amount or tax rate. 
162.9 	(c) There is annually appropriated from the general fund to the commissioner of 
162.10 	revenue an amount necessary to make the payments required by this section. 

162.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

162.12 	Sec. 19. Minnesota Statutes 2007 Supplement, section 273.1234, is amended to read:
162.13 	273.1234 TAX RELIEF FOR DESTROYED PROPERTY; HOMESTEAD 
162.14 	AND DISASTER CREDITS. 
162.15 		Subdivision 1. Credit provided.  The county auditor shall compute a credit for taxes 
162.16 	payable in the year following the year in which the damage or destruction occurred for 
162.17 	each reassessed homestead property within the county that is located within a disaster 
162.18 	or emergency area. The credit is equal to the difference in the net tax on the property 
162.19 	computed using the market value of the property established for the January 2 assessment 
162.20 	in the year in which the damage occurred and as computed using the reassessed value. 
162.21 		Subd. 2. Credit reimbursements.  The county auditor shall certify the credits 
162.22 	granted under this section to the commissioner of revenue for reimbursement to each 
162.23 	taxing jurisdiction in which the damaged property is located. The commissioner shall 
162.24 	make the payments to the taxing jurisdictions containing the property, other than 
162.25 	school districts and the state, at the time distributions are made under section 473H.10, 
162.26 	subdivision 3. Reimbursements to school districts shall be made as provided in section 
162.27 	273.1392. No reimbursement is to be paid to the state treasury.
162.28 		Subd. 3. Appropriation.  There is annually appropriated from the general fund 
162.29 	to the commissioner of revenue an amount necessary to make the payments required 
162.30 	by this section. 

162.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

162.32 	Sec. 20. Minnesota Statutes 2007 Supplement, section 273.1235, subdivision 1, 
162.33 	is amended to read:
163.1 		Subdivision 1. Credit provided.  The county board may grant a credit for taxes 
163.2 	payable in the year following the year in which the damage or destruction occurred 
163.3 	for: (1) homestead properties property that meets all the requirements under section 
163.4 	273.1233, subdivision 1, paragraph (a), but that do does not qualify for a credit under 
163.5 	section 273.1234, except that an application need only be submitted by the end of the 
163.6 	year in which the damage occurred; and (2) nonhomestead and utility property meeting 
163.7 	the requirements that meets all the requirements under section 273.1233, subdivision 1, 
163.8 	paragraph (b), except that an application need only be submitted by the end of the year 
163.9 	in which the damage occurred. 

163.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

163.11 	Sec. 21. Minnesota Statutes 2007 Supplement, section 273.1235, subdivision 3, 
163.12 	is amended to read:
163.13 		Subd. 3. Credit reimbursements.  The county auditor shall certify the credits 
163.14 	granted under this section for property within a disaster or emergency area to the 
163.15 	commissioner of revenue for reimbursement to each taxing jurisdiction in which the 
163.16 	damaged property is located. The commissioner shall make the payments to the taxing 
163.17 	jurisdictions containing the property, other than school districts and the state, at the time 
163.18 	distributions are made under section 473H.10, subdivision 3. Reimbursements to school 
163.19 	districts shall be made as provided in section 273.1392. No reimbursement is to be paid 
163.20 	to the state treasury. No reimbursement is to be made for credits to property not located 
163.21 	in a disaster or emergency area. 

163.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

163.23 	Sec. 22. Minnesota Statutes 2006, section 273.124, subdivision 6, is amended to read:
163.24 		Subd. 6.Leasehold cooperatives. When one or more dwellings or one or more 
163.25 	buildings which each contain several dwelling units is owned by a nonprofit corporation 
163.26 	subject to the provisions of chapter 317A and qualifying under section 501(c)(3) or 
163.27 	501(c)(4) of the Internal Revenue Code of 1986, as amended through December 31, 
163.28 	1990, or a limited partnership which corporation or partnership operates the property in 
163.29 	conjunction with a cooperative association, and has received public financing, homestead 
163.30 	treatment may be claimed by the cooperative association on behalf of the members of 
163.31 	the cooperative for each dwelling unit occupied by a member of the cooperative. The 
163.32 	cooperative association must provide the assessor with the Social Security numbers of 
164.1 	those members. To qualify for the treatment provided by this subdivision, the following 
164.2 	conditions must be met:
164.3 	(a) the cooperative association must be organized under chapter 308A or 308B and 
164.4 	all voting members of the board of directors must be resident tenants of the cooperative 
164.5 	and must be elected by the resident tenants of the cooperative;
164.6 	(b) the cooperative association must have a lease for occupancy of the property for a 
164.7 	term of at least 20 years, which permits the cooperative association, while not in default on 
164.8 	the lease, to participate materially in the management of the property, including material 
164.9 	participation in establishing budgets, setting rent levels, and hiring and supervising a 
164.10 	management agent;
164.11 	(c) to the extent permitted under state or federal law, the cooperative association 
164.12 	must have a right under a written agreement with the owner to purchase the property if the 
164.13 	owner proposes to sell it; if the cooperative association does not purchase the property it is 
164.14 	offered for sale, the owner may not subsequently sell the property to another purchaser at 
164.15 	a price lower than the price at which it was offered for sale to the cooperative association 
164.16 	unless the cooperative association approves the sale;
164.17 	(d) a minimum of 40 percent of the cooperative association's members must have 
164.18 	incomes at or less than 60 percent of area median gross income as determined by the 
164.19 	United States Secretary of Housing and Urban Development under section 142(d)(2)(B) 
164.20 	of the Internal Revenue Code of 1986, as amended through December 31, 1991. For 
164.21 	purposes of this clause, "member income" means the income of a member existing at the 
164.22 	time the member acquires cooperative membership;
164.23 	(e) if a limited partnership owns the property, it must include as the managing 
164.24 	general partner a nonprofit organization operating under the provisions of chapter 317A 
164.25 	and qualifying under section 501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, 
164.26 	as amended through December 31, 1990, and the limited partnership agreement must 
164.27 	provide that the managing general partner have sufficient powers so that it materially 
164.28 	participates in the management and control of the limited partnership;
164.29 	(f) prior to becoming a member of a leasehold cooperative described in this 
164.30 	subdivision, a person must have received notice that (1) describes leasehold cooperative 
164.31 	property in plain language, including but not limited to the effects of classification 
164.32 	under this subdivision on rents, property taxes and tax credits or refunds, and operating 
164.33 	expenses, and (2) states that copies of the articles of incorporation and bylaws of the 
164.34 	cooperative association, the lease between the owner and the cooperative association, a 
164.35 	sample sublease between the cooperative association and a tenant, and, if the owner is a 
164.36 	partnership, a copy of the limited partnership agreement, can be obtained upon written 
165.1 	request at no charge from the owner, and the owner must send or deliver the materials 
165.2 	within seven days after receiving any request;
165.3 	(g) if a dwelling unit of a building was occupied on the 60th day prior to the date on 
165.4 	which the unit became leasehold cooperative property described in this subdivision, the 
165.5 	notice described in paragraph (f) must have been sent by first class mail to the occupant of 
165.6 	the unit at least 60 days prior to the date on which the unit became leasehold cooperative 
165.7 	property. For purposes of the notice under this paragraph, the copies of the documents 
165.8 	referred to in paragraph (f) may be in proposed version, provided that any subsequent 
165.9 	material alteration of those documents made after the occupant has requested a copy 
165.10 	shall be disclosed to any occupant who has requested a copy of the document. Copies of 
165.11 	the articles of incorporation and certificate of limited partnership shall be filed with the 
165.12 	secretary of state after the expiration of the 60-day period unless the change to leasehold 
165.13 	cooperative status does not proceed;
165.14 	(h) the county attorney of the county in which the property is located must certify to 
165.15 	the assessor that the property meets the requirements of this subdivision;
165.16 	(i) the public financing received must be from at least one of the following sources:
165.17 	(1) tax increment financing proceeds used for the acquisition or rehabilitation of the 
165.18 	building or interest rate write-downs relating to the acquisition of the building;
165.19 	(2) government issued bonds exempt from taxes under section 103 of the Internal 
165.20 	Revenue Code of 1986, as amended through December 31, 1991, the proceeds of which 
165.21 	are used for the acquisition or rehabilitation of the building;
165.22 	(3) programs under section 221(d)(3), 202, or 236, of Title II of the National 
165.23 	Housing Act;
165.24 	(4) rental housing program funds under Section 8 of the United States Housing Act 
165.25 	of 1937, as amended through December 31, 2007, or the market rate family graduated 
165.26 	payment mortgage program funds administered by the Minnesota Housing Finance 
165.27 	Agency that are used for the acquisition or rehabilitation of the building;
165.28 	(5) low-income housing credit under section 42 of the Internal Revenue Code of 
165.29 	1986, as amended through December 31, 1991;
165.30 	(6) public financing provided by a local government used for the acquisition or 
165.31 	rehabilitation of the building, including grants or loans from (i) federal community 
165.32 	development block grants; (ii) HOME block grants; or (iii) residential rental bonds issued 
165.33 	under chapter 474A; or
165.34 	(7) other rental housing program funds provided by the Minnesota Housing Finance 
165.35 	Agency for the acquisition or rehabilitation of the building;
166.1 	(j) at the time of the initial request for homestead classification or of any transfer of 
166.2 	ownership of the property, the governing body of the municipality in which the property is 
166.3 	located must hold a public hearing and make the following findings:
166.4 	(1) that the granting of the homestead treatment of the apartment's units will 
166.5 	facilitate safe, clean, affordable housing for the cooperative members that would otherwise 
166.6 	not be available absent the homestead designation;
166.7 	(2) that the owner has presented information satisfactory to the governing body 
166.8 	showing that the savings garnered from the homestead designation of the units will be 
166.9 	used to reduce tenant's rents or provide a level of furnishing or maintenance not possible 
166.10 	absent the designation; and
166.11 	(3) that the requirements of paragraphs (b), (d), and (i) have been met.
166.12 	Homestead treatment must be afforded to units occupied by members of the 
166.13 	cooperative association and the units must be assessed as provided in subdivision 3, 
166.14 	provided that any unit not so occupied shall be classified and assessed pursuant to the 
166.15 	appropriate class. No more than three acres of land may, for assessment purposes, 
166.16 	be included with each dwelling unit that qualifies for homestead treatment under this 
166.17 	subdivision.
166.18 	When dwelling units no longer qualify under this subdivision, the current owner 
166.19 	must notify the assessor within 60 days. Failure to notify the assessor within 60 days shall 
166.20 	result in the loss of benefits under this subdivision for taxes payable in the year that the 
166.21 	failure is discovered. For these purposes, "benefits under this subdivision" means the 
166.22 	difference in the net tax capacity of the units which no longer qualify as computed under 
166.23 	this subdivision and as computed under the otherwise applicable law, times the local tax 
166.24 	rate applicable to the building for that taxes payable year. Upon discovery of a failure to 
166.25 	notify, the assessor shall inform the auditor of the difference in net tax capacity for the 
166.26 	building or buildings in which units no longer qualify, and the auditor shall calculate the 
166.27 	benefits under this subdivision. Such amount, plus a penalty equal to 100 percent of that 
166.28 	amount, shall then be demanded of the building's owner. The property owner may appeal 
166.29 	the county's determination by serving copies of a petition for review with county officials 
166.30 	as provided in section 278.01 and filing a proof of service as provided in section 278.01
166.31 	with the Minnesota Tax Court within 60 days of the date of the notice from the county. 
166.32 	The appeal shall be governed by the Tax Court procedures provided in chapter 271, for 
166.33 	cases relating to the tax laws as defined in section 271.01, subdivision 5; disregarding 
166.34 	sections 273.125, subdivision 5, and 278.03, but including section 278.05, subdivision 2. 
166.35 	If the amount of the benefits under this subdivision and penalty are not paid within 60 
166.36 	days, and if no appeal has been filed, the county auditor shall certify the amount of the 
167.1 	benefit and penalty to the succeeding year's tax list to be collected as part of the property 
167.2 	taxes on the affected buildings.

167.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

167.4 	Sec. 23. Minnesota Statutes 2006, section 273.124, subdivision 13, as amended by 
167.5 	Laws 2008, chapter 154, article 13, section 29, is amended to read:
167.6 		Subd. 13. Homestead application. (a) A person who meets the homestead 
167.7 	requirements under subdivision 1 must file a homestead application with the county 
167.8 	assessor to initially obtain homestead classification. 
167.9 	(b) The format and contents of a uniform homestead application shall be prescribed 
167.10 	by the commissioner of revenue. The application must clearly inform the taxpayer that 
167.11 	this application must be signed by all owners who occupy the property or by the qualifying 
167.12 	relative and returned to the county assessor in order for the property to receive homestead 
167.13 	treatment. 
167.14 	(c) Every property owner applying for homestead classification must furnish to the 
167.15 	county assessor the Social Security number of each occupant who is listed as an owner 
167.16 	of the property on the deed of record, the name and address of each owner who does not 
167.17 	occupy the property, and the name and Social Security number of each owner's spouse who 
167.18 	occupies the property. The application must be signed by each owner who occupies the 
167.19 	property and by each owner's spouse who occupies the property, or, in the case of property 
167.20 	that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative. 
167.21 	If a property owner occupies a homestead, the property owner's spouse may not 
167.22 	claim another property as a homestead unless the property owner and the property owner's 
167.23 	spouse file with the assessor an affidavit or other proof required by the assessor stating that 
167.24 	the property qualifies as a homestead under subdivision 1, paragraph (e). 
167.25 	Owners or spouses occupying residences owned by their spouses and previously 
167.26 	occupied with the other spouse, either of whom fail to include the other spouse's name 
167.27 	and Social Security number on the homestead application or provide the affidavits or 
167.28 	other proof requested, will be deemed to have elected to receive only partial homestead 
167.29 	treatment of their residence. The remainder of the residence will be classified as 
167.30 	nonhomestead residential. When an owner or spouse's name and Social Security number 
167.31 	appear on homestead applications for two separate residences and only one application is 
167.32 	signed, the owner or spouse will be deemed to have elected to homestead the residence for 
167.33 	which the application was signed. 
167.34 	The Social Security numbers, state or federal tax returns or tax return information,
167.35 	or affidavits or other proofs of the property owners and spouses submitted under this or 
168.1 	another section to support a claim for a property tax homestead classification, and the 
168.2 	federal income tax schedule F required by this section, are private data on individuals as 
168.3 	defined by section 13.02, subdivision 12, but, notwithstanding that section, the private data 
168.4 	may be disclosed to the commissioner of revenue, or, for purposes of proceeding under the 
168.5 	Revenue Recapture Act to recover personal property taxes owing, to the county treasurer. 
168.6 	(d) If residential real estate is occupied and used for purposes of a homestead by a 
168.7 	relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in 
168.8 	order for the property to receive homestead status, a homestead application must be filed 
168.9 	with the assessor. The Social Security number of each relative and spouse of a relative 
168.10 	occupying the property shall be required on the homestead application filed under this 
168.11 	subdivision. If a different relative of the owner subsequently occupies the property, the 
168.12 	owner of the property must notify the assessor within 30 days of the change in occupancy. 
168.13 	The Social Security number of a relative or relative's spouse occupying the property 
168.14 	is private data on individuals as defined by section 13.02, subdivision 12, but may be 
168.15 	disclosed to the commissioner of revenue, or, for the purposes of proceeding under the 
168.16 	Revenue Recapture Act to recover personal property taxes owing, to the county treasurer. 
168.17 	(e) The homestead application shall also notify the property owners that the 
168.18 	application filed under this section will not be mailed annually and that if the property 
168.19 	is granted homestead status for any assessment year, that same property shall remain 
168.20 	classified as homestead until the property is sold or transferred to another person, or 
168.21 	the owners, the spouse of the owner, or the relatives no longer use the property as their 
168.22 	homestead. Upon the sale or transfer of the homestead property, a certificate of value must 
168.23 	be timely filed with the county auditor as provided under section 272.115. Failure to 
168.24 	notify the assessor within 30 days that the property has been sold, transferred, or that the 
168.25 	owner, the spouse of the owner, or the relative is no longer occupying the property as a 
168.26 	homestead, shall result in the penalty provided under this subdivision and the property 
168.27 	will lose its current homestead status. 
168.28 	(f) If the homestead application is not returned within 30 days, the county will send a 
168.29 	second application to the present owners of record. The notice of proposed property taxes 
168.30 	prepared under section 275.065, subdivision 3, shall reflect the property's classification. If 
168.31 	a homestead application has not been filed with the county by December 15, the assessor 
168.32 	shall classify the property as nonhomestead for the current assessment year for taxes 
168.33 	payable in the following year, provided that the owner may be entitled to receive the 
168.34 	homestead classification by proper application under section 375.192. 
168.35 	(g) At the request of the commissioner, each county must give the commissioner a 
168.36 	list that includes the name and Social Security number of each occupant of homestead 
169.1 	property who is the property owner, property owner's spouse, qualifying relative of a 
169.2 	property owner, or a spouse of a qualifying relative. The commissioner shall use the 
169.3 	information provided on the lists as appropriate under the law, including for the detection 
169.4 	of improper claims by owners, or relatives of owners, under chapter 290A. 
169.5 	(h) If the commissioner finds that a property owner may be claiming a fraudulent 
169.6 	homestead, the commissioner shall notify the appropriate counties. Within 90 days of 
169.7 	the notification, the county assessor shall investigate to determine if the homestead 
169.8 	classification was properly claimed. If the property owner does not qualify, the county 
169.9 	assessor shall notify the county auditor who will determine the amount of homestead 
169.10 	benefits that had been improperly allowed. For the purpose of this section, "homestead 
169.11 	benefits" means the tax reduction resulting from the classification as a homestead under 
169.12 	section 273.13, the taconite homestead credit under section 273.135, the residential 
169.13 	homestead and agricultural homestead credits under section 273.1384, and the 
169.14 	supplemental homestead credit under section 273.1391. 
169.15 	The county auditor shall send a notice to the person who owned the affected property 
169.16 	at the time the homestead application related to the improper homestead was filed, 
169.17 	demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent 
169.18 	of the homestead benefits. The person notified may appeal the county's determination 
169.19 	by serving copies of a petition for review with county officials as provided in section 
169.20 	278.01 and filing proof of service as provided in section 278.01 with the Minnesota Tax 
169.21 	Court within 60 days of the date of the notice from the county. Procedurally, the appeal 
169.22 	is governed by the provisions in chapter 271 which apply to the appeal of a property tax 
169.23 	assessment or levy, but without requiring any prepayment of the amount in controversy. If 
169.24 	the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal 
169.25 	has been filed, the county auditor shall certify the amount of taxes and penalty to the county 
169.26 	treasurer. The county treasurer will add interest to the unpaid homestead benefits and 
169.27 	penalty amounts at the rate provided in section 279.03 for real property taxes becoming 
169.28 	delinquent in the calendar year during which the amount remains unpaid. Interest may be 
169.29 	assessed for the period beginning 60 days after demand for payment was made. 
169.30 	If the person notified is the current owner of the property, the treasurer may add the 
169.31 	total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes 
169.32 	otherwise payable on the property by including the amounts on the property tax statements 
169.33 	under section 276.04, subdivision 3. The amounts added under this paragraph to the ad 
169.34 	valorem taxes shall include interest accrued through December 31 of the year preceding 
169.35 	the taxes payable year for which the amounts are first added. These amounts, when added 
170.1 	to the property tax statement, become subject to all the laws for the enforcement of real or 
170.2 	personal property taxes for that year, and for any subsequent year. 
170.3 	If the person notified is not the current owner of the property, the treasurer may 
170.4 	collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of 
170.5 	the powers granted in sections 277.20 and 277.21 without exclusion, to enforce payment 
170.6 	of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent 
170.7 	tax obligations of the person who owned the property at the time the application related 
170.8 	to the improperly allowed homestead was filed. The treasurer may relieve a prior owner 
170.9 	of personal liability for the homestead benefits, penalty, interest, and costs, and instead 
170.10 	extend those amounts on the tax lists against the property as provided in this paragraph 
170.11 	to the extent that the current owner agrees in writing. On all demands, billings, property 
170.12 	tax statements, and related correspondence, the county must list and state separately the 
170.13 	amounts of homestead benefits, penalty, interest and costs being demanded, billed or 
170.14 	assessed. 
170.15 	(i) Any amount of homestead benefits recovered by the county from the property 
170.16 	owner shall be distributed to the county, city or town, and school district where the 
170.17 	property is located in the same proportion that each taxing district's levy was to the total 
170.18 	of the three taxing districts' levy for the current year. Any amount recovered attributable 
170.19 	to taconite homestead credit shall be transmitted to the St. Louis County auditor to be 
170.20 	deposited in the taconite property tax relief account. Any amount recovered that is 
170.21 	attributable to supplemental homestead credit is to be transmitted to the commissioner of 
170.22 	revenue for deposit in the general fund of the state treasury. The total amount of penalty 
170.23 	collected must be deposited in the county general fund. 
170.24 	(j) If a property owner has applied for more than one homestead and the county 
170.25 	assessors cannot determine which property should be classified as homestead, the county 
170.26 	assessors will refer the information to the commissioner. The commissioner shall make 
170.27 	the determination and notify the counties within 60 days. 
170.28 	(k) In addition to lists of homestead properties, the commissioner may ask the 
170.29 	counties to furnish lists of all properties and the record owners. The Social Security 
170.30 	numbers and federal identification numbers that are maintained by a county or city 
170.31 	assessor for property tax administration purposes, and that may appear on the lists retain 
170.32 	their classification as private or nonpublic data; but may be viewed, accessed, and used by 
170.33 	the county auditor or treasurer of the same county for the limited purpose of assisting the 
170.34 	commissioner in the preparation of microdata samples under section 270C.12. 
171.1 	(l) On or before April 30 each year beginning in 2007, each county must provide the 
171.2 	commissioner with the following data for each parcel of homestead property by electronic 
171.3 	means as defined in section 289A.02, subdivision 8: 
171.4 	(i) the property identification number assigned to the parcel for purposes of taxes 
171.5 	payable in the current year; 
171.6 	(ii) the name and Social Security number of each occupant of homestead property 
171.7 	who is the property owner, property owner's spouse, qualifying relative of a property 
171.8 	owner, or spouse of a qualifying relative; 
171.9 	(iii) the classification of the property under section 273.13 for taxes payable in the 
171.10 	current year and in the prior year; 
171.11 	(iv) an indication of whether the property was classified as a homestead for taxes 
171.12 	payable in the current year because of occupancy by a relative of the owner or by a 
171.13 	spouse of a relative; 
171.14 	(v) the property taxes payable as defined in section 290A.03, subdivision 13, for the 
171.15 	current year and the prior year; 
171.16 	(vi) the market value of improvements to the property first assessed for tax purposes 
171.17 	for taxes payable in the current year; 
171.18 	(vii) the assessor's estimated market value assigned to the property for taxes payable 
171.19 	in the current year and the prior year; 
171.20 	(viii) the taxable market value assigned to the property for taxes payable in the 
171.21 	current year and the prior year; 
171.22 	(ix) whether there are delinquent property taxes owing on the homestead; 
171.23 	(x) the unique taxing district in which the property is located; and 
171.24 	(xi) such other information as the commissioner decides is necessary. 
171.25 	The commissioner shall use the information provided on the lists as appropriate 
171.26 	under the law, including for the detection of improper claims by owners, or relatives 
171.27 	of owners, under chapter 290A. 

171.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

171.29 	Sec. 24. Minnesota Statutes 2006, section 273.124, subdivision 21, is amended to read:
171.30 		Subd. 21.Trust property; homestead. Real property held by a trustee under a trust 
171.31 	is eligible for classification as homestead property if:
171.32 	(1) the grantor or surviving spouse of the grantor of the trust occupies and uses the 
171.33 	property as a homestead;
171.34 	(2) a relative or surviving relative of the grantor who meets the requirements of 
171.35 	subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1, 
172.1 	paragraph (d), in the case of agricultural property, occupies and uses the property as 
172.2 	a homestead;
172.3 	(3) a family farm corporation, joint farm venture, limited liability company, or 
172.4 	partnership operating a family farm in which the grantor or the grantor's surviving spouse 
172.5 	is a shareholder, member, or partner rents the property held by a trustee under a trust, and 
172.6 	the grantor, the spouse of the grantor, or the son or daughter of the grantor, who is also a 
172.7 	shareholder, member, or partner of the corporation, joint farm venture, limited liability 
172.8 	company, or partnership occupies and uses the property as a homestead, or is actively 
172.9 	farming the property on behalf of the corporation, joint farm venture, limited liability 
172.10 	company, or partnership; or
172.11 	(4) a person who has received homestead classification for property taxes payable in 
172.12 	2000 on the basis of an unqualified legal right under the terms of the trust agreement to 
172.13 	occupy the property as that person's homestead and who continues to use the property as 
172.14 	a homestead or a person who received the homestead classification for taxes payable in 
172.15 	2005 under clause (3) who does not qualify under clause (3) for taxes payable in 2006 
172.16 	or thereafter but who continues to qualify under clause (3) as it existed for taxes payable 
172.17 	in 2005.
172.18 	For purposes of this subdivision, "grantor" is defined as the person creating or 
172.19 	establishing a testamentary, inter Vivos, revocable or irrevocable trust by written 
172.20 	instrument or through the exercise of a power of appointment.

172.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

172.22 	Sec. 25. Minnesota Statutes 2006, section 273.128, subdivision 1, as amended by Laws 
172.23 	2008, chapter 154, article 2, section 10, is amended to read:
172.24 		Subdivision 1. Requirement. Low-income rental property classified as class 4d 
172.25 	under section 273.13, subdivision 25, is entitled to valuation under this section if at least 20 
172.26 	percent of the units in the rental housing property meet any of the following qualifications: 
172.27 	(1) the units are subject to a housing assistance payments contract under Section 8 of 
172.28 	the United States Housing Act of 1937, as amended through December 31, 2007; 
172.29 	(2) the units are rent-restricted and income-restricted units of a qualified low-income 
172.30 	housing project receiving tax credits under section 42(g) of the Internal Revenue Code 
172.31 	of 1986, as amended; 
172.32 	(3) the units are financed by the Rural Housing Service of the United States 
172.33 	Department of Agriculture and receive payments under the rental assistance program 
172.34 	pursuant to section 521(a) of the Housing Act of 1949, as amended; or 
173.1 	(4) the units are subject to rent and income restrictions under the terms of financial 
173.2 	assistance provided to the rental housing property by the federal government or the 
173.3 	state of Minnesota, or a local unit of government, as evidenced by a document recorded 
173.4 	against the property. 
173.5 	The restrictions must require assisted units to be occupied by residents whose 
173.6 	household income at the time of initial occupancy does not exceed 60 percent of the 
173.7 	greater of area or state median income, adjusted for family size, as determined by the 
173.8 	United States Department of Housing and Urban Development. The restriction must also 
173.9 	require the rents for assisted units to not exceed 30 percent of 60 percent of the greater of 
173.10 	area or state median income, adjusted for family size, as determined by the United States 
173.11 	Department of Housing and Urban Development. 

173.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

173.13 	Sec. 26. Minnesota Statutes 2006, section 273.13, subdivision 22, as amended by Laws 
173.14 	2008, chapter 154, article 2, section 11, is amended to read:
173.15 		Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) 
173.16 	and (c), real estate which is residential and used for homestead purposes is class 1a. In the 
173.17 	case of a duplex or triplex in which one of the units is used for homestead purposes, the 
173.18 	entire property is deemed to be used for homestead purposes. The market value of class 1a 
173.19 	property must be determined based upon the value of the house, garage, and land.
173.20 	The first $500,000 of market value of class 1a property has a net class rate of 
173.21 	one percent of its market value; and the market value of class 1a property that exceeds 
173.22 	$500,000 has a class rate of 1.25 percent of its market value.
173.23 	(b) Class 1b property includes homestead real estate or homestead manufactured 
173.24 	homes used for the purposes of a homestead by 
173.25 	(1) any person who is blind as defined in section 256D.35, or the blind person and 
173.26 	the blind person's spouse; or 
173.27 	(2) any person who is permanently and totally disabled or by the disabled person 
173.28 	and the disabled person's spouse.
173.29 	Property is classified and assessed under clause (2) only if the government agency or 
173.30 	income-providing source certifies, upon the request of the homestead occupant, that the 
173.31 	homestead occupant satisfies the disability requirements of this paragraph.
173.32 	Property is classified and assessed under paragraph (b) only if the commissioner 
173.33 	of revenue or the county assessor certifies  that the homestead occupant satisfies the 
173.34 	requirements of this paragraph.
174.1 	Permanently and totally disabled for the purpose of this subdivision means a 
174.2 	condition which is permanent in nature and totally incapacitates the person from working 
174.3 	at an occupation which brings the person an income. The first $50,000 market value of 
174.4 	class 1b property has a net class rate of .45 percent of its market value. The remaining 
174.5 	market value of class 1b property has a class rate using the rates for class 1a or class 2a 
174.6 	property, whichever is appropriate, of similar market value.
174.7 	(c) Class 1c property is commercial use real and personal property that abuts public 
174.8 	water as defined in section 103G.005, subdivision 15, and is devoted to temporary and 
174.9 	seasonal residential occupancy for recreational purposes but not devoted to commercial 
174.10 	purposes for more than 250 days in the year preceding the year of assessment, and that 
174.11 	includes a portion used as a homestead by the owner, which includes a dwelling occupied 
174.12 	as a homestead by a shareholder of a corporation that owns the resort, a partner in a 
174.13 	partnership that owns the resort, or a member of a limited liability company that owns 
174.14 	the resort even if the title to the homestead is held by the corporation, partnership, or 
174.15 	limited liability company. For purposes of this clause, property is devoted to a commercial 
174.16 	purpose on a specific day if any portion of the property, excluding the portion used 
174.17 	exclusively as a homestead, is used for residential occupancy and a fee is charged for 
174.18 	residential occupancy. Class 1c property must contain three or more rental units. A 
174.19 	"rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual 
174.20 	camping site equipped with water and electrical hookups for recreational vehicles. Class 
174.21 	1c property must provide recreational activities such as the rental of ice fishing houses, 
174.22 	boats and motors, snowmobiles, downhill or cross-country ski equipment; provide marina 
174.23 	services, launch services, or guide services; or sell bait and fishing tackle. Any unit in 
174.24 	which the right to use the property is transferred to an individual or entity by deeded 
174.25 	interest, or the sale of shares or stock, no longer qualifies for class 1c even though it may 
174.26 	remain available for rent. A camping pad offered for rent by a property that otherwise 
174.27 	qualifies for class 1c is also class 1c, regardless of the term of the rental agreement, as long 
174.28 	as the use of the camping pad does not exceed 250 days. The portion of the property used 
174.29 	as a homestead is class 1a property under paragraph (a). The remainder of the property is 
174.30 	classified as follows: the first $600,000  of market value is tier I, the next $1,700,000 of 
174.31 	market value is tier II, and any remaining market value is tier III. The class rates for class 
174.32 	1c are: tier I, 0.50  percent; tier II, 1.0 percent; and tier III, 1.25 percent. Owners of real and 
174.33 	personal property devoted to temporary and seasonal residential occupancy for recreation 
174.34 	purposes in which all or a portion of the property was devoted to commercial purposes for 
174.35 	not more than 250 days in the year preceding the year of assessment desiring classification 
174.36 	as class 1c, must submit a declaration to the assessor designating the cabins or units 
175.1 	occupied for 250 days or less in the year preceding the year of assessment by January 15 of 
175.2 	the assessment year. Those cabins or units and a proportionate share of the land on which 
175.3 	they are located must be designated as class 1c as otherwise provided. The remainder of 
175.4 	the cabins or units and a proportionate share of the land on which they are located must be 
175.5 	designated as class 3a commercial. The owner of property desiring designation as class 
175.6 	1c property must provide guest registers or other records demonstrating that the units for 
175.7 	which class 1c designation is sought were not occupied for more than 250 days in the 
175.8 	year preceding the assessment if so requested. The portion of a property operated as a 
175.9 	(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other 
175.10 	nonresidential facility operated on a commercial basis not directly related to temporary 
175.11 	and seasonal residential occupancy for recreation purposes does not qualify for class 1c. 
175.12 	(d) Class 1d property includes structures that meet all of the following criteria: 
175.13 	(1) the structure is located on property that is classified as agricultural property under 
175.14 	section 273.13, subdivision 23; 
175.15 	(2) the structure is occupied exclusively by seasonal farm workers during the time 
175.16 	when they work on that farm, and the occupants are not charged rent for the privilege of 
175.17 	occupying the property, provided that use of the structure for storage of farm equipment 
175.18 	and produce does not disqualify the property from classification under this paragraph; 
175.19 	(3) the structure meets all applicable health and safety requirements for the 
175.20 	appropriate season; and 
175.21 	(4) the structure is not salable as residential property because it does not comply 
175.22 	with local ordinances relating to location in relation to streets or roads. 
175.23 	The market value of class 1d property has the same class rates as class 1a property 
175.24 	under paragraph (a). 

175.25 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
175.26 	thereafter.

175.27 	Sec. 27. Minnesota Statutes 2006, section 273.13, subdivision 25, as amended by Laws 
175.28 	2008, chapter 154, article 2, section 13, is amended to read:
175.29 		Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more 
175.30 	units and used or held for use by the owner or by the tenants or lessees of the owner 
175.31 	as a residence for rental periods of 30 days or more, excluding property qualifying for 
175.32 	class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other 
175.33 	than hospitals exempt under section 272.02, and contiguous property used for hospital 
175.34 	purposes, without regard to whether the property has been platted or subdivided. The 
175.35 	market value of class 4a property has a class rate of 1.25 percent. 
176.1 	(b) Class 4b includes: 
176.2 	(1) residential real estate containing less than four units that does not qualify as class 
176.3 	4bb, other than seasonal residential recreational property; 
176.4 	(2) manufactured homes not classified under any other provision; 
176.5 	(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead 
176.6 	farm classified under subdivision 23, paragraph (b) containing two or three units; and 
176.7 	(4) unimproved property that is classified residential as determined under subdivision 
176.8 	33. 
176.9 	The market value of class 4b property has a class rate of 1.25 percent. 
176.10 	(c) Class 4bb includes: 
176.11 	(1) nonhomestead residential real estate containing one unit, other than seasonal 
176.12 	residential recreational property; and 
176.13 	(2) a single family dwelling, garage, and surrounding one acre of property on a 
176.14 	nonhomestead farm classified under subdivision 23, paragraph (b). 
176.15 	Class 4bb property has the same class rates as class 1a property under subdivision 22. 
176.16 	Property that has been classified as seasonal residential recreational property at 
176.17 	any time during which it has been owned by the current owner or spouse of the current 
176.18 	owner does not qualify for class 4bb. 
176.19 	(d) Class 4c property includes: 
176.20 	(1) except as provided in subdivision 22, paragraph (c), or subdivision 23, paragraph 
176.21 	(b), clause (1), real and personal property devoted to temporary and seasonal residential 
176.22 	occupancy for recreation purposes, including real and personal property devoted to 
176.23 	temporary and seasonal residential occupancy for recreation purposes and not devoted to 
176.24 	commercial purposes for more than 250 days in the year preceding the year of assessment. 
176.25 	For purposes of this clause, property is devoted to a commercial purpose on a specific 
176.26 	day if any portion of the property is used for residential occupancy, and a fee is charged 
176.27 	for residential occupancy. Class 4c property must contain three or more rental units. A 
176.28 	"rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual 
176.29 	camping site equipped with water and electrical hookups for recreational vehicles. Class 
176.30 	4c property must provide recreational activities such as renting ice fishing houses, boats 
176.31 	and motors, snowmobiles, downhill or cross-country ski equipment; provide marina 
176.32 	services, launch services, or guide services; or sell bait and fishing tackle. A camping 
176.33 	pad offered for rent by a property that otherwise qualifies for class 4c is also class 4c 
176.34 	regardless of the term of the rental agreement, as long as the use of the camping pad 
176.35 	does not exceed 250 days. In order for a property to be classified as class 4c, seasonal 
176.36 	residential recreational for commercial purposes, at least 40 percent of the annual gross 
177.1 	lodging receipts related to the property must be from business conducted during 90 
177.2 	consecutive days and either (i) at least 60 percent of all paid bookings by lodging guests 
177.3 	during the year must be for periods of at least two consecutive nights; or (ii) at least 20 
177.4 	percent of the annual gross receipts must be from charges for rental of fish houses, boats 
177.5 	and motors, snowmobiles, downhill or cross-country ski equipment, or charges for marina 
177.6 	services, launch services, and guide services, or the sale of bait and fishing tackle. For 
177.7 	purposes of this determination, a paid booking of five or more nights shall be counted as 
177.8 	two bookings. Class 4c also includes commercial use real property used exclusively 
177.9 	for recreational purposes in conjunction with class 4c property devoted to temporary 
177.10 	and seasonal residential occupancy for recreational purposes, up to a total of two acres, 
177.11 	provided the property is not devoted to commercial recreational use for more than 250 
177.12 	days in the year preceding the year of assessment and is located within two miles of the 
177.13 	class 4c property with which it is used. Owners of real and personal property devoted 
177.14 	to temporary and seasonal residential occupancy for recreation purposes and all or a 
177.15 	portion of which was devoted to commercial purposes for not more than 250 days in the 
177.16 	year preceding the year of assessment desiring classification as class 4c, must submit a 
177.17 	declaration to the assessor designating the cabins or units occupied for 250 days or less in 
177.18 	the year preceding the year of assessment by January 15 of the assessment year. Those 
177.19 	cabins or units and a proportionate share of the land on which they are located must be 
177.20 	designated class 4c as otherwise provided. The remainder of the cabins or units and 
177.21 	a proportionate share of the land on which they are located will be designated as class 
177.22 	3a. The owner of property desiring designation as class 4c property must provide guest 
177.23 	registers or other records demonstrating that the units for which class 4c designation is 
177.24 	sought were not occupied for more than 250 days in the year preceding the assessment if 
177.25 	so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, 
177.26 	(4) conference center or meeting room, and (5) other nonresidential facility operated on a 
177.27 	commercial basis not directly related to temporary and seasonal residential occupancy for 
177.28 	recreation purposes does not qualify for class 4c; 
177.29 	(2) qualified property used as a golf course if: 
177.30 	(i) it is open to the public on a daily fee basis. It may charge membership fees or 
177.31 	dues, but a membership fee may not be required in order to use the property for golfing, 
177.32 	and its green fees for golfing must be comparable to green fees typically charged by 
177.33 	municipal courses; and 
177.34 	(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d). 
177.35 	A structure used as a clubhouse, restaurant, or place of refreshment in conjunction 
177.36 	with the golf course is classified as class 3a property; 
178.1 	(3) real property up to a maximum of three acres of land owned and used by a 
178.2 	nonprofit community service oriented organization and that is not used for residential 
178.3 	purposes on either a temporary or permanent basis, qualifies for class 4c provided that 
178.4 	it meets either of the following: 
178.5 	(i) the property is not used for a revenue-producing activity for more than six days 
178.6 	in the calendar year preceding the year of assessment; or 
178.7 	(ii) the organization makes annual charitable contributions and donations at least 
178.8 	equal to the property's previous year's property taxes and the property is allowed to be 
178.9 	used for public and community meetings or events for no charge, as appropriate to the 
178.10 	size of the facility. 
178.11 	For purposes of this clause, 
178.12 	(A) "charitable contributions and donations" has the same meaning as lawful 
178.13 	gambling purposes under section 349.12, subdivision 25, excluding those purposes 
178.14 	relating to the payment of taxes, assessments, fees, auditing costs, and utility payments; 
178.15 	(B) "property taxes" excludes the state general tax; 
178.16 	(C) a "nonprofit community service oriented organization" means any corporation, 
178.17 	society, association, foundation, or institution organized and operated exclusively for 
178.18 	charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 
178.19 	federal income taxation pursuant to section 501(c)(3), (10), or (19) of the Internal Revenue 
178.20 	Code of 1986, as amended through December 31, 1990; and 
178.21 	(D) "revenue-producing activities" shall include but not be limited to property or that 
178.22 	portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 
178.23 	liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 
178.24 	alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 
178.25 	insurance business, or office or other space leased or rented to a lessee who conducts a 
178.26 	for-profit enterprise on the premises. 
178.27 	Any portion of the property qualifying under item (i) which is used for revenue-producing 
178.28 	activities for more than six days in the calendar year preceding the year of assessment 
178.29 	shall be assessed as class 3a. The use of the property for social events open exclusively 
178.30 	to members and their guests for periods of less than 24 hours, when an admission is 
178.31 	not charged nor any revenues are received by the organization shall not be considered a 
178.32 	revenue-producing activity. 
178.33 	The organization shall maintain records of its charitable contributions and donations 
178.34 	and of public meetings and events held on the property and make them available upon 
178.35 	request any time to the assessor to ensure eligibility. An organization meeting the 
178.36 	requirement under item (ii) must file an application by May 1 with the assessor for 
179.1 	eligibility for the current year's assessment. The commissioner shall prescribe a uniform 
179.2 	application form and instructions; 
179.3 	(4) postsecondary student housing of not more than one acre of land that is owned by 
179.4 	a nonprofit corporation organized under chapter 317A and is used exclusively by a student 
179.5 	cooperative, sorority, or fraternity for on-campus housing or housing located within two 
179.6 	miles of the border of a college campus; 
179.7 	(5) manufactured home parks as defined in section 327.14, subdivision 3; 
179.8 	(6) real property that is actively and exclusively devoted to indoor fitness, health, 
179.9 	social, recreational, and related uses, is owned and operated by a not-for-profit corporation, 
179.10 	and is located within the metropolitan area as defined in section 473.121, subdivision 2; 
179.11 	(7) a leased or privately owned noncommercial aircraft storage hangar not exempt 
179.12 	under section 272.01, subdivision 2, and the land on which it is located, provided that: 
179.13 	(i) the land is on an airport owned or operated by a city, town, county, Metropolitan 
179.14 	Airports Commission, or group thereof; and 
179.15 	(ii) the land lease, or any ordinance or signed agreement restricting the use of the 
179.16 	leased premise, prohibits commercial activity performed at the hangar. 
179.17 	If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must 
179.18 	be filed by the new owner with the assessor of the county where the property is located 
179.19 	within 60 days of the sale; 
179.20 	(8) a privately owned noncommercial aircraft storage hangar not exempt under 
179.21 	section 272.01, subdivision 2, and the land on which it is located, provided that: 
179.22 	(i) the land abuts a public airport; and 
179.23 	(ii) the owner of the aircraft storage hangar provides the assessor with a signed 
179.24 	agreement restricting the use of the premises, prohibiting commercial use or activity 
179.25 	performed at the hangar; and 
179.26 	(9) residential real estate, a portion of which is used by the owner for homestead 
179.27 	purposes, and that is also a place of lodging, if all of the following criteria are met: 
179.28 	(i) rooms are provided for rent to transient guests that generally stay for periods 
179.29 	of 14 or fewer days; 
179.30 	(ii) meals are provided to persons who rent rooms, the cost of which is incorporated 
179.31 	in the basic room rate; 
179.32 	(iii) meals are not provided to the general public except for special events on fewer 
179.33 	than seven days in the calendar year preceding the year of the assessment; and 
179.34 	(iv) the owner is the operator of the property. 
179.35 	The market value subject to the 4c classification under this clause is limited to five rental 
179.36 	units. Any rental units on the property in excess of five, must be valued and assessed as 
180.1 	class 3a. The portion of the property used for purposes of a homestead by the owner must 
180.2 	be classified as class 1a property under subdivision 22. 
180.3 	Class 4c property has a class rate of 1.5 percent of market value, except that (i) each 
180.4 	parcel of seasonal residential recreational property not used for commercial purposes has 
180.5 	the same class rates as class 4bb property, (ii) manufactured home parks assessed under 
180.6 	clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal 
180.7 	residential recreational property has a class rate of one percent for the first $500,000 of 
180.8 	market value, and 1.25 percent for the remaining market value, (iv) the market value of 
180.9 	property described in clause (4) has a class rate of one percent, (v) the market value of 
180.10 	property described in clauses (2) and (6) has a class rate of 1.25 percent, and (vi) that 
180.11 	portion of the market value of property in clause (9) qualifying for class 4c property 
180.12 	has a class rate of 1.25 percent. 
180.13 	(e) Class 4d property is qualifying low-income rental housing certified to the assessor 
180.14 	by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion 
180.15 	of the units in the building qualify as low-income rental housing units as certified under 
180.16 	section 273.128, subdivision 3, only the proportion of qualifying units to the total number 
180.17 	of units in the building qualify for class 4d. The remaining portion of the building shall be 
180.18 	classified by the assessor based upon its use. Class 4d also includes the same proportion of 
180.19 	land as the qualifying low-income rental housing units are to the total units in the building. 
180.20 	For all properties qualifying as class 4d, the market value determined by the assessor must 
180.21 	be based on the normal approach to value using normal unrestricted rents. 
180.22 	Class 4d property has a class rate of 0.75 percent. 

180.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

180.24 	Sec. 28. Minnesota Statutes 2006, section 273.13, subdivision 33, is amended to read:
180.25 		Subd. 33.Classification of unimproved property. (a) All real property that is not 
180.26 	improved with a structure must be classified according to its current use.
180.27 	(b) Except as provided in subdivision 23, paragraph (b), clause (1), real property that 
180.28 	is not improved with a structure and for which there is no identifiable current use must be 
180.29 	classified according to its highest and best use permitted under the local zoning ordinance. 
180.30 	If the ordinance permits more than one use, the land must be classified according to the 
180.31 	highest and best use permitted under the ordinance. If no such ordinance exists, the 
180.32 	assessor shall consider the most likely potential use of the unimproved land based upon 
180.33 	the use made of surrounding land or land in proximity to the unimproved land.

181.1 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
181.2 	thereafter.

181.3 	Sec. 29. Minnesota Statutes 2006, section 274.014, subdivision 3, is amended to read:
181.4 		Subd. 3.Proof of compliance; transfer of duties. (a) Any city or town that 
181.5 	conducts local boards of appeal and equalization meetings must provide proof to the 
181.6 	county assessor by December 1, 2006, and each year thereafter, that it is in compliance 
181.7 	with the requirements of subdivision 2. Beginning in 2006, this notice must also verify 
181.8 	that there was a quorum of voting members at each meeting of the board of appeal 
181.9 	and equalization in the current year. A city or town that does not comply with these 
181.10 	requirements is deemed to have transferred its board of appeal and equalization powers 
181.11 	to the county beginning with the following year's assessment and continuing unless the 
181.12 	powers are reinstated under paragraph (c).
181.13 	(b) The county shall notify the taxpayers when the board of appeal and equalization 
181.14 	for a city or town has been transferred to the county under this subdivision and, prior to 
181.15 	the meeting time of the county board of equalization, the county shall make available to 
181.16 	those taxpayers a procedure for a review of the assessments, including, but not limited to, 
181.17 	open book meetings. This alternate review process shall take place in April and May.
181.18 	(c) A local board whose powers are transferred to the county under this subdivision 
181.19 	may be reinstated by resolution of the governing body of the city or town and upon proof 
181.20 	of compliance with the requirements of subdivision 2. The resolution and proofs must be 
181.21 	provided to the county assessor by December 1 in order to be effective for the following 
181.22 	year's assessment.
181.23 	(d) A local board whose powers are transferred to the county under this subdivision 
181.24 	may continue to employ a local assessor and is not deemed to have transferred its powers 
181.25 	to make assessments.

181.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

181.27 	Sec. 30. Minnesota Statutes 2006, section 276.04, subdivision 2, as amended by Laws 
181.28 	2008, chapter 154, article 2, section 19, is amended to read:
181.29 		Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the 
181.30 	printing of the tax statements. The commissioner of revenue shall prescribe the form 
181.31 	of the property tax statement and its contents. The statement must contain a tabulated 
181.32 	statement of the dollar amount due to each taxing authority and the amount of the state 
181.33 	tax from the parcel of real property for which a particular tax statement is prepared. The 
181.34 	dollar amounts attributable to the county, the state tax, the voter approved school tax, the 
182.1 	other local school tax, the township or municipality, and the total of the metropolitan 
182.2 	special taxing districts as defined in section 275.065, subdivision 3, paragraph (i), must 
182.3 	be separately stated. The amounts due all other special taxing districts, if any, may be 
182.4 	aggregated except that any levies made by the regional rail authorities in the county of 
182.5 	Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A 
182.6 	shall be listed on a separate line directly under the appropriate county's levy. If the county 
182.7 	levy under this paragraph includes an amount for a lake improvement district as defined 
182.8 	under sections 103B.501 to 103B.581, the amount attributable for that purpose must be 
182.9 	separately stated from the remaining county levy amount. In the case of Ramsey County, 
182.10 	if the county levy under this paragraph includes an amount for public library service 
182.11 	under section 134.07, the amount attributable for that purpose may be separated from the 
182.12 	remaining county levy amount. The amount of the tax on homesteads qualifying under the 
182.13 	senior citizens' property tax deferral program under chapter 290B is the total amount of 
182.14 	property tax before subtraction of the deferred property tax amount. The amount of the 
182.15 	tax on contamination value imposed under sections 270.91 to 270.98, if any, must also 
182.16 	be separately stated. The dollar amounts, including the dollar amount of any special 
182.17 	assessments, may be rounded to the nearest even whole dollar. For purposes of this section 
182.18 	whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar. 
182.19 	The amount of market value excluded under section 273.11, subdivision 16, if any, must 
182.20 	also be listed on the tax statement. 
182.21 	(b) The property tax statements for manufactured homes and sectional structures 
182.22 	taxed as personal property shall contain the same information that is required on the 
182.23 	tax statements for real property. 
182.24 	(c) Real and personal property tax statements must contain the following information 
182.25 	in the order given in this paragraph. The information must contain the current year tax 
182.26 	information in the right column with the corresponding information for the previous year 
182.27 	in a column on the left: 
182.28 	(1) the property's estimated market value under section 273.11, subdivision 1; 
182.29 	(2) the property's taxable market value after reductions under section 273.11, 
182.30 	subdivisions 1a and 16; 
182.31 	(3) the property's gross tax, before credits; 
182.32 	(4) for homestead residential and agricultural properties, the credits under section 
182.33 	273.1384; 
182.34 	(5) any credits received under sections 273.119; 273.123 273.1234 or 273.1235; 
182.35 	273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the 
183.1 	amount of credit received under section 273.135 must be separately stated and identified 
183.2 	as "taconite tax relief"; and 
183.3 	(6) the net tax payable in the manner required in paragraph (a). 
183.4 	(d) If the county uses envelopes for mailing property tax statements and if the county 
183.5 	agrees, a taxing district may include a notice with the property tax statement notifying 
183.6 	taxpayers when the taxing district will begin its budget deliberations for the current 
183.7 	year, and encouraging taxpayers to attend the hearings. If the county allows notices to 
183.8 	be included in the envelope containing the property tax statement, and if more than 
183.9 	one taxing district relative to a given property decides to include a notice with the tax 
183.10 	statement, the county treasurer or auditor must coordinate the process and may combine 
183.11 	the information on a single announcement. 

183.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

183.13 	Sec. 31. Minnesota Statutes 2006, section 290B.04, subdivision 1, is amended to read:
183.14 		Subdivision 1.Initial application. (a) A taxpayer meeting the program 
183.15 	qualifications under section 290B.03 may apply to the commissioner of revenue for the 
183.16 	deferral of taxes. Applications are due on or before July 1 for deferral of any of the 
183.17 	following year's property taxes. A taxpayer may apply in the year in which the taxpayer 
183.18 	becomes 65 years old, provided that no deferral of property taxes will be made until the 
183.19 	calendar year after the taxpayer becomes 65 years old. The application, which shall be 
183.20 	prescribed by the commissioner of revenue, shall include the following items and any 
183.21 	other information which the commissioner deems necessary: 
183.22 	(1) the name, address, and Social Security number of the owner or owners;
183.23 	(2) a copy of the property tax statement for the current payable year for the 
183.24 	homesteaded property;
183.25 	(3) the initial year of ownership and occupancy as a homestead;
183.26 	(4) the owner's household income for the previous calendar year; and
183.27 	(5) information on any mortgage loans or other amounts secured by mortgages or 
183.28 	other liens against the property, for which purpose the commissioner may require the 
183.29 	applicant to provide a copy of the mortgage note, the mortgage, or a statement of the 
183.30 	balance owing on the mortgage loan provided by the mortgage holder. The commissioner 
183.31 	may require the appropriate documents in connection with obtaining and confirming 
183.32 	information on unpaid amounts secured by other liens.
183.33 	The application must state that program participation is voluntary. The application 
183.34 	must also state that the deferred amount depends directly on the applicant's household 
183.35 	income, and that program participation includes authorization for the annual deferred 
184.1 	amount, the cumulative deferral and interest that appear on each year's notice prepared by 
184.2 	the county under subdivision 6, is public data.
184.3 	The application must state that program participants may claim the property tax 
184.4 	refund based on the full amount of property taxes eligible for the refund, including any 
184.5 	deferred amounts. The application must also state that property tax refunds will be used to 
184.6 	offset any deferral and interest under this program, and that any other amounts subject to 
184.7 	revenue recapture under section 270A.03, subdivision 7, will also be used to offset any 
184.8 	deferral and interest under this program. 
184.9 	(b) As part of the initial application process, the commissioner may require the 
184.10 	applicant to obtain at the applicant's own cost and submit:
184.11 	(1) if the property is registered property under chapter 508 or 508A, a copy of the 
184.12 	original certificate of title in the possession of the county registrar of titles (sometimes 
184.13 	referred to as "condition of register"); or
184.14 	(2) if the property is abstract property, a report prepared by a licensed abstracter 
184.15 	showing the last deed and any unsatisfied mortgages, liens, judgments, and state and 
184.16 	federal tax lien notices which were recorded on or after the date of that last deed with 
184.17 	respect to the property or to the applicant.
184.18 	The certificate or report under clauses (1) and (2) need not include references to 
184.19 	any documents filed or recorded more than 40 years prior to the date of the certification 
184.20 	or report. The certification or report must be as of a date not more than 30 days prior 
184.21 	to submission of the application.
184.22 	The commissioner may also require the county recorder or county registrar of the 
184.23 	county where the property is located to provide copies of recorded documents related to 
184.24 	the applicant or the property, for which the recorder or registrar shall not charge a fee. The 
184.25 	commissioner may use any information available to determine or verify eligibility under 
184.26 	this section. The household income from the application is private data on individuals as 
184.27 	defined in section 13.02, subdivision 12.

184.28 	EFFECTIVE DATE. This section is effective for data collected or maintained by 
184.29 	the commissioner of revenue beginning the day following final enactment.

184.30 	Sec. 32. Minnesota Statutes 2006, section 469.040, subdivision 4, is amended to read:
184.31 		Subd. 4.Facilities funded from multiple sources. In the metropolitan area, as 
184.32 	defined in section 473.121, subdivision 2, the tax treatment provided in subdivision 3 
184.33 	applies to that portion of any multifamily rental housing facility represented by the ratio of 
184.34 	(1) the number of units in the facility that are subject to the requirements of Section 5 of 
185.1 	the United States Housing Act of 1937, as the result of the implementation of a federal 
185.2 	court order or consent decree to (2) the total number of units within the facility. 
185.3 	The housing and redevelopment authority for the city in which the facility is located, 
185.4 	any public entity exercising the powers of such housing and redevelopment authority, or 
185.5 	the county housing and redevelopment authority for the county in which the facility is 
185.6 	located, shall annually certify to the assessor responsible for assessing the facility, at the 
185.7 	time and in the manner required by the assessor, the number of units in the facility that are 
185.8 	subject to the requirements of Section 5 of the United States Housing Act of 1937.
185.9 	Nothing in this subdivision shall prevent that portion of the facility not subject to 
185.10 	this subdivision from meeting the requirements of section 273.126 273.128, and for that 
185.11 	purpose the total number of units in the facility must be taken into account. 

185.12 	EFFECTIVE DATE. This section is effective retroactively for taxes payable in 
185.13 	2006 and thereafter.

185.14 	Sec. 33. Minnesota Statutes 2006, section 469.174, subdivision 10b, is amended to 
185.15 	read:
185.16 		Subd. 10b.Qualified disaster area. A "qualified disaster area" is an area that 
185.17 	meets the following requirements:
185.18 	(1) parcels consisting of 70 percent of the area of the district were occupied by 
185.19 	buildings, streets, utilities, paved or gravel parking lots, or other similar structures 
185.20 	immediately before the disaster or emergency;
185.21 	(2) the area of the district was subject to a disaster or emergency, as defined in 
185.22 	section 273.123, subdivision 1 273.1231, subdivision 2, within the 18-month period 
185.23 	ending on the day the request for certification of the district is made; and 
185.24 	(3) 50 percent or more of the buildings in the area have suffered substantial damage 
185.25 	as a result of the disaster or emergency.

185.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

185.27 	Sec. 34. Minnesota Statutes 2006, section 469.177, subdivision 1c, is amended to read:
185.28 		Subd. 1c.Original net tax capacity adjustments; presidential disaster area. (a) 
185.29 	The provisions of this subdivision apply to a district located in a disaster area, as described 
185.30 	in section   273.123, subdivision 1, paragraph (b) 273.1231, subdivision 3, paragraph (a), 
185.31 	clause (1), and are effective for taxes payable in the first calendar year beginning at least 
185.32 	four months after the date of the determination. 
186.1 	(b) For a district certified before the date of the disaster area determination as 
186.2 	provided in section   273.123, subdivision 1, paragraph (b) 273.1231, subdivision 3, 
186.3 	paragraph (a), clause (1), upon the request of the municipality, the county auditor shall 
186.4 	reduce the original net tax capacity of the district by the reduction in the net tax capacity 
186.5 	of properties in the district that is attributable to the physical effects of the disaster, but not 
186.6 	below zero. The assessor shall determine the amount of the reduction in market value that 
186.7 	is attributable to the physical effects of the disaster to be used by the county auditor in 
186.8 	computing the reduction in net tax capacity. 
186.9 	(c) For a district that does not qualify under paragraph (b) and for which the request 
186.10 	for certification is made in the same calendar year as the disaster area determination, 
186.11 	upon the request of the municipality, the assessor shall determine the reduction in market 
186.12 	value of properties in the district that is attributable to the physical effects of the disaster. 
186.13 	The county auditor shall use the reduced market value in certifying the original net tax 
186.14 	capacity of the district.

186.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

186.16 	Sec. 35.  REPEALER.
 186.17 	Minnesota Statutes 2006, section 477A.014, subdivision 5, and Minnesota Statutes 
186.18 	2007 Supplement, section 477A.014, subdivision 4, are repealed.

186.19 	EFFECTIVE DATE. This section is effective for aid payable in 2009 and thereafter.

186.20 	ARTICLE 14
186.21 	DEPARTMENT JOB OPPORTUNITY BUILDING ZONES

186.22 	Section 1. Minnesota Statutes 2006, section 469.319, is amended to read:
186.23 	469.319 REPAYMENT OF TAX BENEFITS BY BUSINESSES THAT NO 
186.24 	LONGER OPERATE IN A ZONE.
186.25 		Subdivision 1.Repayment obligation. A business must repay the amount of the
186.26 	total tax reductionbenefits listed in section 469.315and any refund under section 469.318
186.27 	in excess of tax liability, received during the two years immediately before it (1) ceased to 
186.28 	operate in the zone, if the business:
186.29 	(1) received tax reductions authorized by section 469.315; and
186.30 	(2)(i) did not meet the goals specified in an agreement entered into with the applicant 
186.31 	that states any obligation the qualified business must fulfill in order to be eligible for tax 
186.32 	benefits. The commissioner of employment and economic development may extend for 
186.33 	up to one year the period for meeting any goals provided in an agreement. The applicant 
187.1 	may extend the period for meeting other goals by documenting in writing the reason 
187.2 	for the extension and attaching a copy of the document to its next annual report to the 
187.3 	commissioner of employment and economic development; or
187.4 	(ii) ceased to operate its facility located within the job opportunity building zone
187.5 	 perform a substantial level of activities described in the business subsidy agreement, or 
187.6 	(2) otherwise ceasesceased to be or is not a qualified business, other than those subject to 
187.7 	the provisions of section 469.3191.
187.8 		Subd. 1a.Repayment obligation of businesses not operating in zone. Persons 
187.9 	that receive benefits without operating a business in a zone are subject to repayment 
187.10 	under this section if the business for which those benefits relate is subject to repayment 
187.11 	under this section. Such persons are deemed to have ceased performing in the zone on 
187.12 	the same day that the qualified business for which the benefits relate becomes subject to 
187.13 	repayment under subdivision 1.
187.14 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have 
187.15 	the meanings given.
187.16 	(b) "Business" means any person whothat received tax benefits enumerated in 
187.17 	section 469.315. 
187.18 	(c) "Commissioner" means the commissioner of revenue.
187.19 	(d) "Persons that receive benefits without operating a business in a zone" means 
187.20 	persons that claim benefits under section 469.316, subdivision 2 or 4, as well as persons 
187.21 	that own property leased by a qualified business and eligible for benefits under section 
187.22 	272.02, subdivision 64, or 297A.68, subdivision 37, paragraph (b).
187.23 		Subd. 3.Disposition of repayment. The repayment must be paid to the state to 
187.24 	the extent it represents a state tax reduction and to the county to the extent it represents a 
187.25 	property tax reduction. Any amount repaid to the state must be deposited in the general 
187.26 	fund. Any amount repaid to the county for the property tax exemption must be distributed 
187.27 	to the local governments taxing authorities with authority to levy taxes in the zone in the 
187.28 	same manner provided for distribution of payment of delinquent property taxes. Any 
187.29 	repayment of local sales taxes must be repaid to the commissioner for distribution to the 
187.30 	city or county imposing the local sales tax.
187.31 		Subd. 4.Repayment procedures. (a) For the repayment of taxes imposed under 
187.32 	chapter 290 or 297A or local taxes collected pursuant to section 297A.99, a business must 
187.33 	file an amended return with the commissioner of revenue and pay any taxes required 
187.34 	to be repaid within 30 days after ceasing to do business in the zone becoming subject 
187.35 	to repayment under this section. The amount required to be repaid is determined by 
188.1 	calculating the tax for the period or periods for which repayment is required without 
188.2 	regard to the exemptions and credits allowed under section 469.315.
188.3 	(b) For the repayment of taxes imposed under chapter 297B, a business must pay any 
188.4 	taxes required to be repaid to the motor vehicle registrar, as agent for the commissioner 
188.5 	of revenue, within 30 days after ceasing to do business in the zone becoming subject 
188.6 	to repayment under this section.
188.7 	(c) For the repayment of property taxes, the county auditor shall prepare a tax 
188.8 	statement for the business, applying the applicable tax extension rates for each payable 
188.9 	year and provide a copy to the business and to the taxpayer of record. The business must 
188.10 	pay the taxes to the county treasurer within 30 days after receipt of the tax statement. 
188.11 	The business or the taxpayer of record may appeal the valuation and determination of the 
188.12 	property tax to the Tax Court within 30 days after receipt of the tax statement.
188.13 	(d) The provisions of chapters 270C and 289A relating to the commissioner's 
188.14 	authority to audit, assess, and collect the tax and to hear appeals are applicable to the 
188.15 	repayment required under paragraphs (a) and (b). The commissioner may impose civil 
188.16 	penalties as provided in chapter 289A, and the additional tax and penalties are subject to 
188.17 	interest at the rate provided in section 270C.40, from 30 days after ceasing to do business 
188.18 	in the job opportunity building zone becoming subject to repayment under this section
188.19 	until the date the tax is paid.
188.20 	(e) If a property tax is not repaid under paragraph (c), the county treasurer shall add 
188.21 	the amount required to be repaid to the property taxes assessed against the property for 
188.22 	payment in the year following the year in which the treasurer discovers that the business 
188.23 	ceased to operate in the job opportunity building zone auditor provided the statement 
188.24 	under paragraph (c).
188.25 	(f) For determining the tax required to be repaid, a tax reduction of a state or local 
188.26 	sales or use tax is deemed to have been received on the date that the tax would have 
188.27 	been due if the taxpayer had not been entitled to the exemption or on the date a refund 
188.28 	was issued for a refundable tax credit good or service was purchased or first put to a 
188.29 	taxable use. In the case of an income tax or franchise tax, including the credit payable 
188.30 	under section 469.318, a reduction of tax is deemed to have been received for the two 
188.31 	most recent tax years that have ended prior to the date that the business became subject to 
188.32 	repayment under this section. In the case of a property tax, a reduction of tax is deemed to 
188.33 	have been received for the taxes payable in the year that the business became subject to 
188.34 	repayment under this section and for the taxes payable in the prior year.
188.35 	(g) The commissioner may assess the repayment of taxes under paragraph (d) 
188.36 	any time within two years after the business ceases to operate in the job opportunity 
189.1 	building zone becomes subject to repayment under subdivision 1, or within any period of 
189.2 	limitations for the assessment of tax under section 289A.38, whichever period is later. The 
189.3 	county auditor may send the statement under paragraph (c) any time within three years 
189.4 	after the business becomes subject to repayment under subdivision 1.
189.5 	(h) A business is not entitled to any income tax or franchise tax benefits, including 
189.6 	refundable credits, for any part of the year in which the business becomes subject to 
189.7 	repayment under this section nor for any year thereafter. Property is not exempt from tax 
189.8 	under section 272.02, subdivision 64, for any taxes payable in the year following the year 
189.9 	in which the property became subject to repayment under this section nor for any year 
189.10 	thereafter. A business is not eligible for any sales tax benefits beginning with goods 
189.11 	or services purchased or first put to a taxable use on the day that the business becomes 
189.12 	subject to repayment under this section.
189.13 		Subd. 5.Waiver authority. (a) The commissioner may waive all or part of a 
189.14 	repayment required under subdivision 1, if the commissioner, in consultation with 
189.15 	the commissioner of employment and economic development and appropriate officials 
189.16 	from the local government units in which the qualified business is located, determines 
189.17 	that requiring repayment of the tax is not in the best interest of the state or the local 
189.18 	government units and the business ceased operating as a result of circumstances beyond 
189.19 	its control including, but not limited to:
189.20 	(1) a natural disaster;
189.21 	(2) unforeseen industry trends; or
189.22 	(3) loss of a major supplier or customer.
189.23 	(b)(1) The commissioner shall waive repayment required under subdivision 1a if 
189.24 	the commissioner has waived repayment by the operating business under subdivision 1, 
189.25 	unless the person that received benefits without having to operate a business in the zone 
189.26 	was a contributing factor in the qualified business becoming subject to repayment under 
189.27 	subdivision 1.
189.28 	(2) The commissioner shall waive the repayment required under subdivision 1a, 
189.29 	even if the repayment has not been waived for the operating business if:
189.30 	(i) the person that received benefits without having to operate a business in the zone 
189.31 	and the business that operated in the zone are not related parties as defined in section 
189.32 	267(b) of the Internal Revenue Code of 1986, as amended through December 31, 2007; and
189.33 	(ii) actions of the person were not a contributing factor in the qualified business 
189.34 	becoming subject to repayment under subdivision 1.
190.1 		Subd. 6.Reconciliation. Where this section is inconsistent with section 116J.994, 
190.2 	subdivision 3, paragraph (e), or 6, or any other provisions of sections 116J.993 to 
190.3 	116J.995, this section prevails.

190.4 	EFFECTIVE DATE. The amendment to subdivision 4, paragraph (c), of this 
190.5 	section is effective the day following final enactment. The amendment to subdivision 4, 
190.6 	paragraph (f), is effective January 1, 2008, and applies to all businesses that become 
190.7 	subject to this section in 2008 and thereafter. The rest of this section is effective 
190.8 	retroactively from January 1, 2004, except that for violations that occur before the day 
190.9 	following final enactment, this section does not apply if the business has repaid the 
190.10 	benefits or the commissioner has granted a waiver.

190.11 	Sec. 2. [469.3191] BREACH OF AGREEMENTS BY BUSINESSES THAT 
190.12 	CONTINUE TO OPERATE IN ZONE.
190.13 	(a) A "business in violation of its business subsidy agreement but not subject to 
190.14 	section 469.319" means a business that is operating in violation of the business subsidy 
190.15 	agreement but maintains a level of operations in the zone that does not subject it to the 
190.16 	repayment provisions of section 469.319, subdivision 1, clause (1). 
190.17 	(b) A business described in paragraph (a) that does not sign a new or amended 
190.18 	business subsidy agreement, as authorized under paragraph (h), is subject to repayment 
190.19 	of benefits under section 469.319 from the day that it ceases to perform in the zone a 
190.20 	substantial level of activities described in the business subsidy agreement. 
190.21 	(c) A business described in paragraph (a) ceases being a qualified business after the 
190.22 	last day that it has to meet the goals stated in the agreement.
190.23 	(d) A business is not entitled to any income tax or franchise tax benefits, including 
190.24 	refundable credits, for any part of the year in which the business is no longer a qualified 
190.25 	business under paragraph (c), and thereafter. A business is not eligible for sales tax 
190.26 	benefits beginning with goods or services purchased or put to a taxable use on the day that 
190.27 	it is no longer a qualified business under paragraph (c). Property is not exempt from tax 
190.28 	under section 272.02, subdivision 64, for any taxes payable in the year following the year 
190.29 	in which the business is no longer a qualified business under paragraph (c), and thereafter.
190.30 	(e) A business described in paragraph (a) that wants to resume eligibility for benefits 
190.31 	under section 469.315 must request that the commissioner of employment and economic 
190.32 	development determine the length of time that the business is ineligible for benefits. The 
190.33 	commissioner shall determine the length of ineligibility by applying the proportionate 
190.34 	level of performance under the agreement to the total duration of the zone as measured 
190.35 	from the date that the business subsidy agreement was executed. The length of time 
191.1 	must not be less than one full year for each tax benefit listed in section 469.315. The 
191.2 	commissioner of employment and economic development and the appropriate local 
191.3 	government officials shall consult with the commissioner of revenue to ensure that the 
191.4 	period of ineligibility includes at least one full year of benefits for each tax. 
191.5 	(f) The length of ineligibility determined under paragraph (e) must be applied by 
191.6 	reducing the zone duration for the property by the duration of the ineligibility.
191.7 	(g) The zone duration of property that has been adjusted under paragraph (f) must 
191.8 	not be altered again to permit the business additional benefits under section 469.315.
191.9 	(h) A business described in paragraph (a) becomes eligible for benefits available 
191.10 	under section 469.315 by entering into a new or amended business subsidy agreement 
191.11 	with the appropriate local government unit. The new or amended agreement must cover 
191.12 	a period beginning from the date of ineligibility under the original business subsidy 
191.13 	agreement, through the zone duration determined by the commissioner under paragraph 
191.14 	(f). No exemption of property taxes under section 272.02, subdivision 64, is available 
191.15 	under the new or amended agreement for property taxes due or paid before the date of 
191.16 	the final execution of the new or amended agreement, but unpaid taxes due after that 
191.17 	date need not be paid.
191.18 	(i) A business that violates the terms of an agreement authorized under paragraph 
191.19 	(h) is permanently barred from seeking benefits under section 469.315 and is subject to 
191.20 	the repayment provisions under section 469.319 effective from the day that the business 
191.21 	ceases to operate as a qualified business in the zone under the second agreement. 

191.22 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2004. 
191.23 	For violations that occur before the day following final enactment, this section does not 
191.24 	apply if the business has repaid the benefits or the commissioner has granted a waiver. 

191.25 	Sec. 3. [469.3192] PROHIBITION AGAINST AMENDMENTS TO BUSINESS 
191.26 	SUBSIDY AGREEMENT.
191.27 	Except as authorized under section 469.3191, under no circumstance shall terms 
191.28 	of any agreement required as a condition for eligibility for benefits listed under section 
191.29 	469.315 be amended to change job creation, job retention, or wage goals included in 
191.30 	the agreement.

191.31 	EFFECTIVE DATE. This section is effective the day following final enactment 
191.32 	and applies to all agreements executed before, on, or after the effective date.

192.1 	Sec. 4. [469.3193] CERTIFICATION OF CONTINUING ELIGIBILITY FOR 
192.2 	JOBZ BENEFITS.
192.3 	(a) By December 1 of each year, every qualified business must certify to the 
192.4 	commissioner of revenue, on a form prescribed by the commissioner, whether it is 
192.5 	in compliance with any agreement required as a condition for eligibility for benefits 
192.6 	listed under section 469.315. A business that fails to submit the certification, or any 
192.7 	business, including those still operating in the zone, that submits a certification that 
192.8 	the commissioner of revenue later determines materially misrepresents the business's 
192.9 	compliance with the agreement, is subject to the repayment provisions under section 
192.10 	469.319 from January 1 of the year in which the report is due or the date that the business 
192.11 	became subject to section 469.319, whichever is earlier. Any such business is permanently 
192.12 	barred from obtaining benefits under section 469.315. For purposes of this section, the bar 
192.13 	applies to an entity and also applies to any individuals or entities that have an ownership 
192.14 	interest of at least 20 percent of the entity.
192.15 	(b) Before the sanctions under paragraph (a) apply to a business that fails to 
192.16 	submit the certification, the commissioner of revenue shall send notice to the business, 
192.17 	demanding that the certification be submitted within 30 days and advising the business 
192.18 	of the consequences for failing to do so. The commissioner of revenue shall notify 
192.19 	the commissioner of employment and economic development and the appropriate job 
192.20 	opportunity subzone administrator whenever notice is sent to a business under this 
192.21 	paragraph.
192.22 	(c) The certification required under this section is public. 
192.23 	(d) The commissioner of revenue shall promptly notify the commissioner of 
192.24 	employment and economic development of all businesses that certify that they are not 
192.25 	in compliance with the terms of their business subsidy agreement and all businesses 
192.26 	that fail to file the certification.

192.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

192.28 	ARTICLE 15
192.29 	DEPARTMENT MISCELLANEOUS

192.30 	Section 1. Minnesota Statutes 2006, section 16D.02, subdivision 3, is amended to read:
192.31 		Subd. 3.Debt. "Debt" means an amount owed to the state directly, or through a 
192.32 	state agency, on account of a fee, duty, lease, direct loan, loan insured or guaranteed by 
192.33 	the state, rent, service, sale of real or personal property, overpayment, fine, assessment, 
192.34 	penalty, restitution, damages, interest, tax, bail bond, forfeiture, reimbursement, liability 
193.1 	owed, an assignment to the state including assignments under section 256.741, the Social 
193.2 	Security Act, or other state or federal law, recovery of costs incurred by the state, or any 
193.3 	other source of indebtedness to the state. Debt also includes amounts owed to individuals 
193.4 	as a result of civil, criminal, or administrative action brought by the state or a state agency 
193.5 	pursuant to its statutory authority or for which the state or state agency acts in a fiduciary 
193.6 	capacity in providing collection services in accordance with the regulations adopted under 
193.7 	the Social Security Act at Code of Federal Regulations, title 45, section 302.33. When the 
193.8 	commissioner provides collection services pursuant to a debt qualification plan, debt also 
193.9 	includes an amount owed to the courts, local government units, Minnesota state colleges 
193.10 	and universities governed by the Board of Trustees of the Minnesota State Colleges and 
193.11 	Universities, or University of Minnesota for which the commissioner provides collection 
193.12 	services pursuant to contract. 

193.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

193.14 	Sec. 2. Minnesota Statutes 2006, section 16D.02, subdivision 6, is amended to read:
193.15 		Subd. 6.Referring agency. "Referring agency" means a state agency, local 
193.16 	government unit, Minnesota state colleges and universities governed by the Board of 
193.17 	Trustees of the Minnesota State Colleges and Universities, University of Minnesota, or 
193.18 	a court, that has entered into a debt qualification plan with the commissioner to refer 
193.19 	debts to the commissioner for collection.

193.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

193.21 	Sec. 3. Minnesota Statutes 2006, section 16D.04, subdivision 2, as amended by Laws 
193.22 	2008, chapter 154, article 15, section 2, is amended to read:
193.23 		Subd. 2. Agency participation. (a) A referring agency must refer, by electronic 
193.24 	means, debts to the commissioner for collection. Responsibility for the debt, including the 
193.25 	reporting of the debt to the commissioner of finance and the decision with regard to the 
193.26 	continuing collection and uncollectibility of the debt, remains with the referring agency.
193.27 	Decisions with regard to continuing collection and the uncollectibility of referred debts 
193.28 	shall be made by the commissioner who shall then notify the commissioner of finance and 
193.29 	the referring agency. A decision by the commissioner that a referred debt is uncollectible 
193.30 	does not prevent the referring agency from taking additional collection action.
193.31 	(b) Before a debt becomes 121 days past due, a referring agency may refer the 
193.32 	debt to the commissioner for collection at any time after a debt becomes delinquent and 
193.33 	uncontested and the debtor has no further administrative appeal of the amount of the debt. 
194.1 	When a debt owed to a referring agency becomes 121 days past due, the referring agency 
194.2 	must refer the debt to the commissioner for collection. This requirement does not apply if 
194.3 	there is a dispute over the amount or validity of the debt, if the debt is the subject of legal 
194.4 	action or administrative proceedings, or the agency determines that the debtor is adhering 
194.5 	to acceptable payment arrangements. The commissioner may provide that certain types of 
194.6 	debt need not be referred to the commissioner for collection under this paragraph. Methods 
194.7 	and procedures for referral must follow internal guidelines prepared by the commissioner. 
194.8 	(c) If the referring agency is a court, the court must furnish a debtor's Social Security 
194.9 	number to the commissioner when the court refers the debt. 

194.10 	EFFECTIVE DATE. This section is effective for debts referred after December 
194.11 	31, 2008.

194.12 	Sec. 4. Minnesota Statutes 2006, section 270A.08, subdivision 1, is amended to read:
194.13 		Subdivision 1.Notice to debtor. (a) Not later than five days after the claimant 
194.14 	agency has sent notification to the department pursuant to section 270A.07, subdivision 1, 
194.15 	the claimant agency shall send a written notification to the debtor asserting the right of the 
194.16 	claimant agency to the refund or any part thereof. If the notice is returned to the claimant 
194.17 	agency as undeliverable, or the claimant agency has reason to believe the debtor did not 
194.18 	receive the notice, the claimant agency shall obtain the current last known address of the 
194.19 	debtor from the commissioner and resend the corrected notice. 
194.20 	(b) If a debt has been referred to the commissioner for collection under chapter 16D, 
194.21 	and the referring agency meets the definition of claimant agency under this chapter, the 
194.22 	commissioner must notify the debtor prior to using revenue recapture under this chapter 
194.23 	for collection of the debt. The notice must be sent by United States mail or personal 
194.24 	delivery to the last known address of the debtor.

194.25 	EFFECTIVE DATE. This section is effective for debts referred after December 
194.26 	31, 2008.

194.27 	Sec. 5. Minnesota Statutes 2006, section 270C.33, subdivision 5, is amended to read:
194.28 		Subd. 5.Prohibition against collection during appeal period of an order. No 
194.29 	collection action can be taken on an order of assessment, or any other order imposing a 
194.30 	liability, including the filing of liens under section 270C.63, and no late payment penalties 
194.31 	may be imposed when a return has been filed for the tax type and period upon which the 
194.32 	order is based, during the appeal period of an order. The appeal period of an order ends: 
194.33 	(1) 60 days after the order has been mailed to the taxpayer by the commissioner; (2) if an 
195.1 	administrative appeal is filed under section 270C.35, 60 days after determination of the 
195.2 	administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when the 
195.3 	decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the appeal is 
195.4 	based upon a constitutional challenge to the tax, 60 days after final determination of the 
195.5 	appeal. This subdivision does not apply to a jeopardy assessment under section 270C.36, 
195.6 	or a jeopardy collection under section 270C.36.

195.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

195.8 	ARTICLE 16
195.9 	MISCELLANEOUS

195.10 	Section 1. DATA UPDATE.
 195.11 	The commissioner of revenue must continue to maintain, update, and make available 
195.12 	the information required under Laws 1987, chapter 268, article 7, section 1, subdivision 
195.13 	6, paragraph (b). The commissioner must provide the most complete and current data 
195.14 	available, when requested, to the chairs of the senate and house of representatives 
195.15 	committees on taxes. $200,000 is appropriated from the general fund to the commissioner 
195.16 	of revenue in fiscal year 2009 for this purpose.