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, clarifying, and other changes 
1.4 	to income, corporate franchise, estate, property; sales, use, gross receipts, 
1.5 	local, solid waste, gambling, mortgage, deed, petroleum, insurance, minerals, 
1.6 	production, and other taxes and tax-related provisions; providing terms 
1.7 	and conditions relating to issuance of obligations and financing of public 
1.8 	improvements; making changes to tax increment financing and local government 
1.9 	aid provisions, conforming to certain federal provisions; providing clarification 
1.10 	for eligibility for property tax exemption for institutions of public charity; 
1.11 	modifying truth in taxation, tax preparation services, police and firefighter relief 
1.12 	association amortization state-aid provisions; making changes to local taxing 
1.13 	authorities; providing emergency debt certificates; authorizing the issuance of 
1.14 	local bonds; providing temporary suspension of new or increased maintenance of 
1.15 	effort requirements; requiring studies; appropriating money;amending Minnesota 
1.16 	Statutes 2008, sections 37.31, subdivision 8; 123B.10, subdivision 1; 124D.4531, 
1.17 	by adding a subdivision; 126C.41, subdivision 2; 126C.55, subdivision 4; 
1.18 	144F.01, subdivision 3; 204B.46; 270B.14, subdivision 16; 270C.12, by adding 
1.19 	a subdivision; 270C.445; 270C.446, subdivisions 2, 5; 270C.56, subdivisions 
1.20 	1, 3; 272.02, subdivisions 7, 55, 86, by adding subdivisions; 272.029, 
1.21 	subdivision 6; 273.11, subdivision 23; 273.111, subdivision 4, by adding a 
1.22 	subdivision; 273.1115, subdivision 2; 273.113, subdivisions 1, 2; 273.1231, 
1.23 	subdivision 8; 273.124, subdivisions 3, 3a, 21; 273.13, subdivisions 23, 25, 33; 
1.24 	273.33, subdivision 2; 273.37, subdivision 2; 274.13, subdivision 2; 274.135, 
1.25 	subdivision 3; 274.14; 274.175; 275.065, subdivisions 1, 3, 6; 275.07, by 
1.26 	adding a subdivision; 275.70, subdivision 5; 276.04, subdivision 2; 279.01, 
1.27 	subdivision 1; 279.10; 282.08; 287.04; 287.05, by adding a subdivision; 287.08; 
1.28 	287.22; 287.25; 289A.02, subdivision 7, as amended; 289A.08, subdivision 3; 
1.29 	289A.11, subdivision 1; 289A.12, by adding a subdivision; 289A.18, subdivision 
1.30 	1; 289A.19, subdivision 4; 289A.20, subdivision 4; 289A.31, subdivision 5; 
1.31 	289A.38, subdivision 7; 289A.41; 290.01, subdivisions 19, as amended, 19a, as 
1.32 	amended, 19b, 19c, as amended, 19d, as amended, 31, as amended; 290.06, 
1.33 	subdivision 2c; 290.067, subdivision 2a, as amended; 290.0671, subdivision 
1.34 	1; 290.0678, as added; 290.091, subdivision 2; 290A.03, subdivisions 3, as 
1.35 	amended, 15, as amended; 290A.10; 290A.14; 290B.03, subdivision 1; 290C.06; 
1.36 	290C.07; 291.005, subdivision 1, as amended; 295.56; 295.57, subdivision 5; 
1.37 	296A.21, subdivision 1; 297A.62, by adding a subdivision; 297A.64, subdivision 
1.38 	2; 297A.70, subdivisions 2, 4; 297A.71, by adding a subdivision; 297A.75, 
1.39 	subdivisions 1, 2; 297A.94; 297A.992, subdivision 2; 297A.993, subdivision 1; 
2.1 	297B.02, subdivision 1; 297E.02, subdivision 4; 297E.06, subdivision 4, by 
2.2 	adding a subdivision; 297E.11, subdivision 1; 297F.09, subdivision 7; 297G.09, 
2.3 	subdivision 6; 297H.06, subdivision 1; 297I.30, by adding a subdivision; 297I.35, 
2.4 	subdivision 2; 298.227; 298.28, subdivisions 2, 4, 11; 298.75, subdivision 2; 
2.5 	309.53, subdivision 3; 349.1641; 349.19, subdivision 9; 360.036, subdivision 
2.6 	2; 366.095, subdivision 1; 373.47, subdivision 1; 373.48, subdivision 1, by 
2.7 	adding a subdivision; 375.194, subdivision 5; 383A.75, subdivision 3; 423A.02, 
2.8 	subdivisions 1, 1b, 3, by adding a subdivision; 428A.03, subdivision 1; 428A.08; 
2.9 	428A.09; 428A.10; 428A.101; 428A.13, by adding a subdivision; 428A.14, 
2.10 	subdivision 1; 428A.21; 429.011, subdivision 2a; 446A.086, subdivision 8, by 
2.11 	adding a subdivision; 465.719, subdivision 9; 469.005, subdivision 1; 469.015, 
2.12 	subdivisions 1, 2, 3; 469.034, subdivision 2; 469.040, subdivisions 2, 4; 469.053, 
2.13 	by adding a subdivision; 469.153, subdivision 2; 469.174, subdivision 22; 
2.14 	469.175, subdivisions 1, 6; 469.176, subdivisions 3, 6; 469.1763, subdivision 3; 
2.15 	469.178, subdivision 7; 469.312, subdivision 5; 471.191, subdivision 1; 473.13, 
2.16 	subdivision 1; 473.39, by adding a subdivision; 473.843, subdivision 3; 474A.02, 
2.17 	subdivisions 2, 14; 475.58, subdivision 1; 475.67, subdivision 8; 477A.011, 
2.18 	subdivisions 34, 36, 42; 477A.013, subdivision 8; 645.44, subdivision 19; Laws 
2.19 	1971, chapter 773, section 4, as amended; Laws 1976, chapter 162, section 
2.20 	3, as amended; Laws 1986, chapter 396, section 4, subdivision 3; by adding 
2.21 	a subdivision; Laws 1986, chapter 400, section 44, as amended; Laws 1991, 
2.22 	chapter 291, article 8, section 27, subdivision 3, as amended; Laws 1993, chapter 
2.23 	375, article 9, section 46, subdivision 2, as amended, by adding a subdivision; 
2.24 	Laws 1996, chapter 471, article 2, section 30; Laws 1998, chapter 389, article 
2.25 	8, section 37, subdivision 1; Laws 2001, First Special Session chapter 5, article 
2.26 	3, section 8, as amended; Laws 2002, chapter 377, article 3, section 25; Laws 
2.27 	2006, chapter 259, article 3, section 12, subdivision 3; Laws 2008, chapter 366, 
2.28 	article 5, section 34; article 6, sections 9; 10; 46, subdivisions 1, 2; article 7, 
2.29 	sections 16, subdivision 3; 18, subdivisions 2, 3; Laws 2009, chapter 12, article 
2.30 	2, section 5, subdivision 2; proposing coding for new law in Minnesota Statutes, 
2.31 	chapters 16A; 270C; 275; 469; 475; repealing Minnesota Statutes 2008, sections 
2.32 	126C.21, subdivision 4; 275.065, subdivisions 5a, 6b, 6c, 8, 9, 10; 287.26; 
2.33 	287.27, subdivision 1; 297A.67, subdivision 24; 298.28, subdivisions 11a, 13; 
2.34 	Laws 1993, chapter 375, article 5, section 42, as amended; Laws 1998, chapter 
2.35 	407, article 8, section 12, subdivision 4; Laws 2009, chapter 37, article 1, section 
2.36 	31, subdivision 3; Minnesota Rules, parts 8009.3000; 8115.0200; 8115.0300; 
2.37 	8115.0400; 8115.0500; 8115.0600; 8115.1000; 8115.1100; 8115.1200; 
2.38 	8115.1300; 8115.1400; 8115.1500; 8115.1600; 8115.1700; 8115.1800; 
2.39 	8115.1900; 8115.2000; 8115.2100; 8115.2200; 8115.2300; 8115.2400; 
2.40 	8115.2500; 8115.2600; 8115.2700; 8115.2800; 8115.2900; 8115.3000; 
2.41 	8115.4000; 8115.4100; 8115.4200; 8115.4300; 8115.4400; 8115.4500; 
2.42 	8115.4600; 8115.4700; 8115.4800; 8115.4900; 8115.5000; 8115.5100; 
2.43 	8115.5200; 8115.5300; 8115.5400; 8115.5500; 8115.5600; 8115.5700; 
2.44 	8115.5800; 8115.5900; 8115.6000; 8115.6100; 8115.6200; 8115.6300; 
2.45 	8115.6400; 8115.9900.
2.46 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.47 	ARTICLE 1
2.48 	FEDERAL UPDATE

2.49 	Section 1. Minnesota Statutes 2008, section 289A.02, subdivision 7, as amended by 
2.50 	Laws 2009, chapter 12, article 1, section 1, is amended to read:
3.1 		Subd. 7.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
3.2 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
3.3 	31, 2008 March 31, 2009.

3.4 	EFFECTIVE DATE. This section is effective the day following final enactment, 
3.5 	except the changes incorporated by federal changes are effective at the same time as the 
3.6 	changes were effective for federal purposes.

3.7 	Sec. 2. Minnesota Statutes 2008, section 290.01, subdivision 19, as amended by Laws 
3.8 	2009, chapter 12, article 1, section 2, is amended to read:
3.9 		Subd. 19. Net income. The term "net income" means the federal taxable income, 
3.10 	as defined in section 63 of the Internal Revenue Code of 1986, as amended through the 
3.11 	date named in this subdivision, incorporating the federal effective dates of changes to the 
3.12 	Internal Revenue Code and any elections made by the taxpayer in accordance with the 
3.13 	Internal Revenue Code in determining federal taxable income for federal income tax 
3.14 	purposes, and with the modifications provided in subdivisions 19a to 19f. 
3.15 	In the case of a regulated investment company or a fund thereof, as defined in section 
3.16 	851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 
3.17 	company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 
3.18 	except that: 
3.19 	(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 
3.20 	Revenue Code does not apply; 
3.21 	(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal 
3.22 	Revenue Code must be applied by allowing a deduction for capital gain dividends and 
3.23 	exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal 
3.24 	Revenue Code; and 
3.25 	(3) the deduction for dividends paid must also be applied in the amount of any 
3.26 	undistributed capital gains which the regulated investment company elects to have treated 
3.27 	as provided in section 852(b)(3)(D) of the Internal Revenue Code. 
3.28 	The net income of a real estate investment trust as defined and limited by section 
3.29 	856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust 
3.30 	taxable income as defined in section 857(b)(2) of the Internal Revenue Code. 
3.31 	The net income of a designated settlement fund as defined in section 468B(d) of 
3.32 	the Internal Revenue Code means the gross income as defined in section 468B(b) of the 
3.33 	Internal Revenue Code. 
3.34 	The Internal Revenue Code of 1986, as amended through December 31, 2008 March 
3.35 	31, 2009, shall be in effect for taxable years beginning after December 31, 1996. 
4.1 	Except as otherwise provided, references to the Internal Revenue Code in 
4.2 	subdivisions 19 to 19f mean the code in effect for purposes of determining net income for 
4.3 	the applicable year. 

4.4 	EFFECTIVE DATE. This section is effective the day following final enactment. In 
4.5 	enacting this section and other provisions of this article, the legislature intends net income 
4.6 	to include and tax to apply to interest paid on any Build America Bond, as defined under 
4.7 	section 54AA of the Internal Revenue Code of 1986, notwithstanding the provisions of 
4.8 	section 1531 of Division B, Title I of the American Recovery and Reinvestment Act of 
4.9 	2009, Public Law 111-5.

4.10 	Sec. 3. Minnesota Statutes 2008, section 290.01, subdivision 19a, as amended by Laws 
4.11 	2009, chapter 12, article 1, section 3, is amended to read:
4.12 		Subd. 19a. Additions to federal taxable income. For individuals, estates, and 
4.13 	trusts, there shall be added to federal taxable income: 
4.14 	(1)(i) interest income on obligations of any state other than Minnesota or a political 
4.15 	or governmental subdivision, municipality, or governmental agency or instrumentality 
4.16 	of any state other than Minnesota exempt from federal income taxes under the Internal 
4.17 	Revenue Code or any other federal statute; and 
4.18 	(ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue 
4.19 	Code, except the portion of the exempt-interest dividends derived from interest income 
4.20 	on obligations of the state of Minnesota or its political or governmental subdivisions, 
4.21 	municipalities, governmental agencies or instrumentalities, but only if the portion of the 
4.22 	exempt-interest dividends from such Minnesota sources paid to all shareholders represents 
4.23 	95 percent or more of the exempt-interest dividends that are paid by the regulated 
4.24 	investment company as defined in section 851(a) of the Internal Revenue Code, or the 
4.25 	fund of the regulated investment company as defined in section 851(g) of the Internal 
4.26 	Revenue Code, making the payment; and 
4.27 	(iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal 
4.28 	government described in section 7871(c) of the Internal Revenue Code shall be treated as 
4.29 	interest income on obligations of the state in which the tribe is located; 
4.30 	(2) the amount of income or, sales and use, motor vehicle sales, or excise taxes paid 
4.31 	or accrued within the taxable year under this chapter and the amount of taxes based on 
4.32 	net income paid or, sales and use, motor vehicle sales, or excise taxes paid to any other 
4.33 	state or to any province or territory of Canada, to the extent allowed as a deduction under 
4.34 	section 63(d) of the Internal Revenue Code, but the addition may not be more than the 
4.35 	amount by which the itemized deductions as allowed under section 63(d) of the Internal 
5.1 	Revenue Code exceeds the amount of the standard deduction as defined in section 63(c) 
5.2 	of the Internal Revenue Code, disregarding the amount amounts allowed under section
5.3 	sections 63(c)(1)(C) and 63(c)(1)(E) of the Internal Revenue Code. For the purpose of 
5.4 	this paragraph, the disallowance of itemized deductions under section 68 of the Internal 
5.5 	Revenue Code of 1986, income or, sales and use tax is, motor vehicle sales, or excise 
5.6 	taxes are the last itemized deduction deductions disallowed; 
5.7 	(3) the capital gain amount of a lump-sum distribution to which the special tax under 
5.8 	section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies; 
5.9 	(4) the amount of income taxes paid or accrued within the taxable year under this 
5.10 	chapter and taxes based on net income paid to any other state or any province or territory 
5.11 	of Canada, to the extent allowed as a deduction in determining federal adjusted gross 
5.12 	income. For the purpose of this paragraph, income taxes do not include the taxes imposed 
5.13 	by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729; 
5.14 	(5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10 
5.15 	other than expenses or interest used in computing net interest income for the subtraction 
5.16 	allowed under subdivision 19b, clause (1); 
5.17 	(6) the amount of a partner's pro rata share of net income which does not flow 
5.18 	through to the partner because the partnership elected to pay the tax on the income under 
5.19 	section 6242(a)(2) of the Internal Revenue Code; 
5.20 	(7) 80 percent of the depreciation deduction allowed under section 168(k) of the 
5.21 	Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that 
5.22 	in the taxable year generates a deduction for depreciation under section 168(k) and the 
5.23 	activity generates a loss for the taxable year that the taxpayer is not allowed to claim for 
5.24 	the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is 
5.25 	limited to excess of the depreciation claimed by the activity under section 168(k) over the 
5.26 	amount of the loss from the activity that is not allowed in the taxable year. In succeeding 
5.27 	taxable years when the losses not allowed in the taxable year are allowed, the depreciation 
5.28 	under section 168(k) is allowed; 
5.29 	(8) 80 percent of the amount by which the deduction allowed by section 179 of the 
5.30 	Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal 
5.31 	Revenue Code of 1986, as amended through December 31, 2003; 
5.32 	(9) to the extent deducted in computing federal taxable income, the amount of the 
5.33 	deduction allowable under section 199 of the Internal Revenue Code; 
5.34 	(10) the exclusion allowed under section 139A of the Internal Revenue Code for 
5.35 	federal subsidies for prescription drug plans; 
5.36 	(11) the amount of expenses disallowed under section 290.10, subdivision 2;
6.1 	(12) the amount deducted for qualified tuition and related expenses under section 
6.2 	222 of the Internal Revenue Code, to the extent deducted from gross income; 
6.3 	(13) the amount deducted for certain expenses of elementary and secondary school 
6.4 	teachers under section 62(a)(2)(D) of the Internal Revenue Code, to the extent deducted 
6.5 	from gross income; and
6.6 	(14) the additional standard deduction for property taxes payable that is allowable 
6.7 	under section 63(c)(1)(C) of the Internal Revenue Code;
6.8 	(15) the additional standard deduction for qualified motor vehicle sales taxes 
6.9 	allowable under section 63(c)(1)(E) of the Internal Revenue Code;
6.10 	(16) discharge of indebtedness income resulting from reacquisition of business 
6.11 	indebtedness and deferred under section 108(i) of the Internal Revenue Code; and
6.12 	(17) the amount of unemployment compensation exempt from tax under section 
6.13 	85(c) of the Internal Revenue Code.

6.14 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
6.15 	December 31, 2008, except that clause (16) is effective for taxable years ending after 
6.16 	December 31, 2008.

6.17 	Sec. 4. Minnesota Statutes 2008, section 290.01, subdivision 19b, is amended to read:
6.18 		Subd. 19b. Subtractions from federal taxable income. For individuals, estates, 
6.19 	and trusts, there shall be subtracted from federal taxable income: 
6.20 	(1) net interest income on obligations of any authority, commission, or 
6.21 	instrumentality of the United States to the extent includable in taxable income for federal 
6.22 	income tax purposes but exempt from state income tax under the laws of the United States; 
6.23 	(2) if included in federal taxable income, the amount of any overpayment of income 
6.24 	tax to Minnesota or to any other state, for any previous taxable year, whether the amount 
6.25 	is received as a refund or as a credit to another taxable year's income tax liability; 
6.26 	(3) the amount paid to others, less the amount used to claim the credit allowed under 
6.27 	section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten 
6.28 	to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and 
6.29 	transportation of each qualifying child in attending an elementary or secondary school 
6.30 	situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a 
6.31 	resident of this state may legally fulfill the state's compulsory attendance laws, which 
6.32 	is not operated for profit, and which adheres to the provisions of the Civil Rights Act 
6.33 	of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or 
6.34 	tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, 
6.35 	"textbooks" includes books and other instructional materials and equipment purchased 
7.1 	or leased for use in elementary and secondary schools in teaching only those subjects 
7.2 	legally and commonly taught in public elementary and secondary schools in this state. 
7.3 	Equipment expenses qualifying for deduction includes expenses as defined and limited in 
7.4 	section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional 
7.5 	books and materials used in the teaching of religious tenets, doctrines, or worship, the 
7.6 	purpose of which is to instill such tenets, doctrines, or worship, nor does it include books 
7.7 	or materials for, or transportation to, extracurricular activities including sporting events, 
7.8 	musical or dramatic events, speech activities, driver's education, or similar programs. For 
7.9 	purposes of the subtraction provided by this clause, "qualifying child" has the meaning 
7.10 	given in section 32(c)(3) of the Internal Revenue Code; 
7.11 	(4) income as provided under section 290.0802; 
7.12 	(5) to the extent included in federal adjusted gross income, income realized on 
7.13 	disposition of property exempt from tax under section 290.491; 
7.14 	(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) 
7.15 	of the Internal Revenue Code in determining federal taxable income by an individual 
7.16 	who does not itemize deductions for federal income tax purposes for the taxable year, an 
7.17 	amount equal to 50 percent of the excess of charitable contributions over $500 allowable 
7.18 	as a deduction for the taxable year under section 170(a) of the Internal Revenue Code and 
7.19 	under the provisions of Public Law 109-1; 
7.20 	(7) for taxable years beginning before January 1, 2008, the amount of the federal 
7.21 	small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code 
7.22 	which is included in gross income under section 87 of the Internal Revenue Code; 
7.23 	(8) for individuals who are allowed a federal foreign tax credit for taxes that do not 
7.24 	qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover 
7.25 	of subnational foreign taxes for the taxable year, but not to exceed the total subnational 
7.26 	foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, 
7.27 	"federal foreign tax credit" means the credit allowed under section 27 of the Internal 
7.28 	Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed 
7.29 	under section 904(c) of the Internal Revenue Code minus national level foreign taxes to 
7.30 	the extent they exceed the federal foreign tax credit; 
7.31 	(9) in each of the five tax years immediately following the tax year in which an 
7.32 	addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case 
7.33 	of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth 
7.34 	of the delayed depreciation. For purposes of this clause, "delayed depreciation" means 
7.35 	the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or 
7.36 	subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the 
8.1 	positive value of any net operating loss under section 172 of the Internal Revenue Code 
8.2 	generated for the tax year of the addition. The resulting delayed depreciation cannot be 
8.3 	less than zero; 
8.4 	(10) job opportunity building zone income as provided under section 469.316; 
8.5 	(11) to the extent included in federal taxable income, the amount of compensation 
8.6 	paid to members of the Minnesota National Guard or other reserve components of the 
8.7 	United States military for active service performed in Minnesota, excluding compensation 
8.8 	for services performed under the Active Guard Reserve (AGR) program. For purposes of 
8.9 	this clause, "active service" means (i) state active service as defined in section 190.05, 
8.10 	subdivision 5a, clause (1); (ii) federally funded state active service as defined in section 
8.11 	190.05, subdivision 5b; or (iii) federal active service as defined in section 190.05, 
8.12 	subdivision 5c, but "active service" excludes service performed in accordance with section 
8.13 	190.08, subdivision 3; 
8.14 	(12) to the extent included in federal taxable income, the amount of compensation 
8.15 	paid to Minnesota residents who are members of the armed forces of the United States or 
8.16 	United Nations for active duty performed outside Minnesota under United States Code, 
8.17 	title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of 
8.18 	the United Nations; 
8.19 	(13) an amount, not to exceed $10,000, equal to qualified expenses related to a 
8.20 	qualified donor's donation, while living, of one or more of the qualified donor's organs 
8.21 	to another person for human organ transplantation. For purposes of this clause, "organ" 
8.22 	means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; 
8.23 	"human organ transplantation" means the medical procedure by which transfer of a human 
8.24 	organ is made from the body of one person to the body of another person; "qualified 
8.25 	expenses" means unreimbursed expenses for both the individual and the qualified donor 
8.26 	for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses 
8.27 	may be subtracted under this clause only once; and "qualified donor" means the individual 
8.28 	or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An 
8.29 	individual may claim the subtraction in this clause for each instance of organ donation for 
8.30 	transplantation during the taxable year in which the qualified expenses occur; 
8.31 	(14) in each of the five tax years immediately following the tax year in which an 
8.32 	addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a 
8.33 	shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 
8.34 	addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the 
8.35 	case of a shareholder of a corporation that is an S corporation, minus the positive value of 
8.36 	any net operating loss under section 172 of the Internal Revenue Code generated for the 
9.1 	tax year of the addition. If the net operating loss exceeds the addition for the tax year, a 
9.2 	subtraction is not allowed under this clause; 
9.3 	(15) to the extent included in federal taxable income, compensation paid to a service 
9.4 	member as defined in United States Code, title 10, section 101(a)(5), for military service 
9.5 	as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2); 
9.6 	(16) international economic development zone income as provided under section 
9.7 	469.325; and
9.8 	(17) to the extent included in federal taxable income, the amount of national service 
9.9 	educational awards received from the National Service Trust under United States Code, 
9.10 	title 42, sections 12601 to 12604, for service in an approved Americorps National Service 
9.11 	program; and
9.12 	(18) to the extent included in federal taxable income, discharge of indebtedness 
9.13 	income resulting from reacquisition of business indebtedness included in federal taxable 
9.14 	income under section 108(i) of the Internal Revenue Code. This subtraction applies only 
9.15 	to the extent that the income was included in net income in a prior year as a result of the 
9.16 	addition under section 290.01, subdivision 19a, clause (16). 

9.17 	EFFECTIVE DATE. This section is effective for taxable years ending after 
9.18 	December 31, 2008.

9.19 	Sec. 5. Minnesota Statutes 2008, section 290.01, subdivision 19c, as amended by Laws 
9.20 	2009, chapter 12, article 1, section 4, is amended to read:
9.21 		Subd. 19c. Corporations; additions to federal taxable income. For corporations, 
9.22 	there shall be added to federal taxable income: 
9.23 	(1) the amount of any deduction taken for federal income tax purposes for income, 
9.24 	excise, or franchise taxes based on net income or related minimum taxes, including but not 
9.25 	limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota, 
9.26 	another state, a political subdivision of another state, the District of Columbia, or any 
9.27 	foreign country or possession of the United States; 
9.28 	(2) interest not subject to federal tax upon obligations of: the United States, its 
9.29 	possessions, its agencies, or its instrumentalities; the state of Minnesota or any other 
9.30 	state, any of its political or governmental subdivisions, any of its municipalities, or any 
9.31 	of its governmental agencies or instrumentalities; the District of Columbia; or Indian 
9.32 	tribal governments; 
9.33 	(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal 
9.34 	Revenue Code; 
10.1 	(4) the amount of any net operating loss deduction taken for federal income tax 
10.2 	purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss 
10.3 	deduction under section 810 of the Internal Revenue Code; 
10.4 	(5) the amount of any special deductions taken for federal income tax purposes 
10.5 	under sections 241 to 247 and 965 of the Internal Revenue Code; 
10.6 	(6) losses from the business of mining, as defined in section 290.05, subdivision 1, 
10.7 	clause (a), that are not subject to Minnesota income tax; 
10.8 	(7) the amount of any capital losses deducted for federal income tax purposes under 
10.9 	sections 1211 and 1212 of the Internal Revenue Code; 
10.10 	(8) the exempt foreign trade income of a foreign sales corporation under sections 
10.11 	921(a) and 291 of the Internal Revenue Code; 
10.12 	(9) the amount of percentage depletion deducted under sections 611 through 614 and 
10.13 	291 of the Internal Revenue Code; 
10.14 	(10) for certified pollution control facilities placed in service in a taxable year 
10.15 	beginning before December 31, 1986, and for which amortization deductions were elected 
10.16 	under section 169 of the Internal Revenue Code of 1954, as amended through December 
10.17 	31, 1985, the amount of the amortization deduction allowed in computing federal taxable 
10.18 	income for those facilities; 
10.19 	(11) the amount of any deemed dividend from a foreign operating corporation 
10.20 	determined pursuant to section 290.17, subdivision 4, paragraph (g). The deemed dividend 
10.21 	shall be reduced by the amount of the addition to income required by clauses (20), (21), 
10.22 	(22), and (23); 
10.23 	(12) the amount of a partner's pro rata share of net income which does not flow 
10.24 	through to the partner because the partnership elected to pay the tax on the income under 
10.25 	section 6242(a)(2) of the Internal Revenue Code; 
10.26 	(13) the amount of net income excluded under section 114 of the Internal Revenue 
10.27 	Code; 
10.28 	(14) any increase in subpart F income, as defined in section 952(a) of the Internal 
10.29 	Revenue Code, for the taxable year when subpart F income is calculated without regard to 
10.30 	the provisions of Division C, title III, section 304(a)(1)-(2) 303(b) of Public Law 110-343; 
10.31 	(15) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A) 
10.32 	and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer 
10.33 	has an activity that in the taxable year generates a deduction for depreciation under 
10.34 	section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year 
10.35 	that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed 
10.36 	under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the 
11.1 	depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the 
11.2 	amount of the loss from the activity that is not allowed in the taxable year. In succeeding 
11.3 	taxable years when the losses not allowed in the taxable year are allowed, the depreciation 
11.4 	under section 168(k)(1)(A) and (k)(4)(A) is allowed; 
11.5 	(16) 80 percent of the amount by which the deduction allowed by section 179 of the 
11.6 	Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal 
11.7 	Revenue Code of 1986, as amended through December 31, 2003; 
11.8 	(17) to the extent deducted in computing federal taxable income, the amount of the 
11.9 	deduction allowable under section 199 of the Internal Revenue Code; 
11.10 	(18) the exclusion allowed under section 139A of the Internal Revenue Code for 
11.11 	federal subsidies for prescription drug plans; 
11.12 	(19) the amount of expenses disallowed under section 290.10, subdivision 2;
11.13 	(20) an amount equal to the interest and intangible expenses, losses, and costs paid, 
11.14 	accrued, or incurred by any member of the taxpayer's unitary group to or for the benefit 
11.15 	of a corporation that is a member of the taxpayer's unitary business group that qualifies 
11.16 	as a foreign operating corporation. For purposes of this clause, intangible expenses and 
11.17 	costs include:
11.18 	(i) expenses, losses, and costs for, or related to, the direct or indirect acquisition, 
11.19 	use, maintenance or management, ownership, sale, exchange, or any other disposition of 
11.20 	intangible property;
11.21 	(ii) losses incurred, directly or indirectly, from factoring transactions or discounting 
11.22 	transactions;
11.23 	(iii) royalty, patent, technical, and copyright fees;
11.24 	(iv) licensing fees; and
11.25 	(v) other similar expenses and costs. 
11.26 	For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent 
11.27 	applications, trade names, trademarks, service marks, copyrights, mask works, trade 
11.28 	secrets, and similar types of intangible assets.
11.29 	This clause does not apply to any item of interest or intangible expenses or costs paid, 
11.30 	accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect 
11.31 	to such item of income to the extent that the income to the foreign operating corporation 
11.32 	is income from sources without the United States as defined in subtitle A, chapter 1, 
11.33 	subchapter N, part 1, of the Internal Revenue Code;
11.34 	(21) except as already included in the taxpayer's taxable income pursuant to clause 
11.35 	(20), any interest income and income generated from intangible property received or 
12.1 	accrued by a foreign operating corporation that is a member of the taxpayer's unitary 
12.2 	group. For purposes of this clause, income generated from intangible property includes:
12.3 	(i) income related to the direct or indirect acquisition, use, maintenance or 
12.4 	management, ownership, sale, exchange, or any other disposition of intangible property;
12.5 	(ii) income from factoring transactions or discounting transactions;
12.6 	(iii) royalty, patent, technical, and copyright fees;
12.7 	(iv) licensing fees; and
12.8 	(v) other similar income.
12.9 	For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent 
12.10 	applications, trade names, trademarks, service marks, copyrights, mask works, trade 
12.11 	secrets, and similar types of intangible assets. 
12.12 	This clause does not apply to any item of interest or intangible income received or accrued 
12.13 	by a foreign operating corporation with respect to such item of income to the extent that 
12.14 	the income is income from sources without the United States as defined in subtitle A, 
12.15 	chapter 1, subchapter N, part 1, of the Internal Revenue Code;
12.16 	(22) the dividends attributable to the income of a foreign operating corporation that 
12.17 	is a member of the taxpayer's unitary group in an amount that is equal to the dividends 
12.18 	paid deduction of a real estate investment trust under section 561(a) of the Internal 
12.19 	Revenue Code for amounts paid or accrued by the real estate investment trust to the 
12.20 	foreign operating corporation; 
12.21 	(23) the income of a foreign operating corporation that is a member of the taxpayer's 
12.22 	unitary group in an amount that is equal to gains derived from the sale of real or personal 
12.23 	property located in the United States; and
12.24 	(24) the additional amount allowed as a deduction for donation of computer 
12.25 	technology and equipment under section 170(e)(6) of the Internal Revenue Code, to the 
12.26 	extent deducted from taxable income; and
12.27 	(25) discharge of indebtedness income resulting from reacquisition of business 
12.28 	indebtedness and deferred under section 108(i) of the Internal Revenue Code. 

12.29 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
12.30 	December 31, 2007, except that clause (25) is effective for taxable years ending after 
12.31 	December 31, 2008.

12.32 	Sec. 6. Minnesota Statutes 2008, section 290.01, subdivision 19d, as amended by Laws 
12.33 	2009, chapter 12, article 1, section 5, is amended to read:
13.1 		Subd. 19d. Corporations; modifications decreasing federal taxable income. For 
13.2 	corporations, there shall be subtracted from federal taxable income after the increases 
13.3 	provided in subdivision 19c: 
13.4 	(1) the amount of foreign dividend gross-up added to gross income for federal 
13.5 	income tax purposes under section 78 of the Internal Revenue Code; 
13.6 	(2) the amount of salary expense not allowed for federal income tax purposes due to 
13.7 	claiming the work opportunity credit under section 51 of the Internal Revenue Code; 
13.8 	(3) any dividend (not including any distribution in liquidation) paid within the 
13.9 	taxable year by a national or state bank to the United States, or to any instrumentality of 
13.10 	the United States exempt from federal income taxes, on the preferred stock of the bank 
13.11 	owned by the United States or the instrumentality; 
13.12 	(4) amounts disallowed for intangible drilling costs due to differences between 
13.13 	this chapter and the Internal Revenue Code in taxable years beginning before January 
13.14 	1, 1987, as follows: 
13.15 	(i) to the extent the disallowed costs are represented by physical property, an amount 
13.16 	equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09, 
13.17 	subdivision 7, subject to the modifications contained in subdivision 19e; and 
13.18 	(ii) to the extent the disallowed costs are not represented by physical property, an 
13.19 	amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section 
13.20 	290.09, subdivision 8; 
13.21 	(5) the deduction for capital losses pursuant to sections 1211 and 1212 of the 
13.22 	Internal Revenue Code, except that: 
13.23 	(i) for capital losses incurred in taxable years beginning after December 31, 1986, 
13.24 	capital loss carrybacks shall not be allowed; 
13.25 	(ii) for capital losses incurred in taxable years beginning after December 31, 1986, 
13.26 	a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be 
13.27 	allowed; 
13.28 	(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a 
13.29 	capital loss carryback to each of the three taxable years preceding the loss year, subject to 
13.30 	the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and 
13.31 	(iv) for capital losses incurred in taxable years beginning before January 1, 1987, 
13.32 	a capital loss carryover to each of the five taxable years succeeding the loss year to the 
13.33 	extent such loss was not used in a prior taxable year and subject to the provisions of 
13.34 	Minnesota Statutes 1986, section 290.16, shall be allowed; 
13.35 	(6) an amount for interest and expenses relating to income not taxable for federal 
13.36 	income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and 
14.1 	expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or 
14.2 	291 of the Internal Revenue Code in computing federal taxable income; 
14.3 	(7) in the case of mines, oil and gas wells, other natural deposits, and timber for 
14.4 	which percentage depletion was disallowed pursuant to subdivision 19c, clause (9), a 
14.5 	reasonable allowance for depletion based on actual cost. In the case of leases the deduction 
14.6 	must be apportioned between the lessor and lessee in accordance with rules prescribed 
14.7 	by the commissioner. In the case of property held in trust, the allowable deduction must 
14.8 	be apportioned between the income beneficiaries and the trustee in accordance with the 
14.9 	pertinent provisions of the trust, or if there is no provision in the instrument, on the basis 
14.10 	of the trust's income allocable to each; 
14.11 	(8) for certified pollution control facilities placed in service in a taxable year 
14.12 	beginning before December 31, 1986, and for which amortization deductions were elected 
14.13 	under section 169 of the Internal Revenue Code of 1954, as amended through December 
14.14 	31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes 
14.15 	1986, section 290.09, subdivision 7; 
14.16 	(9) amounts included in federal taxable income that are due to refunds of income, 
14.17 	excise, or franchise taxes based on net income or related minimum taxes paid by the 
14.18 	corporation to Minnesota, another state, a political subdivision of another state, the 
14.19 	District of Columbia, or a foreign country or possession of the United States to the extent 
14.20 	that the taxes were added to federal taxable income under section 290.01, subdivision 19c, 
14.21 	clause (1), in a prior taxable year; 
14.22 	(10) 80 percent of royalties, fees, or other like income accrued or received from a 
14.23 	foreign operating corporation or a foreign corporation which is part of the same unitary 
14.24 	business as the receiving corporation, unless the income resulting from such payments or 
14.25 	accruals is income from sources within the United States as defined in subtitle A, chapter 
14.26 	1, subchapter N, part 1, of the Internal Revenue Code; 
14.27 	(11) income or gains from the business of mining as defined in section 290.05, 
14.28 	subdivision 1, clause (a), that are not subject to Minnesota franchise tax; 
14.29 	(12) the amount of disability access expenditures in the taxable year which are not 
14.30 	allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code; 
14.31 	(13) the amount of qualified research expenses not allowed for federal income tax 
14.32 	purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that 
14.33 	the amount exceeds the amount of the credit allowed under section 290.068; 
14.34 	(14) the amount of salary expenses not allowed for federal income tax purposes due 
14.35 	to claiming the Indian employment credit under section 45A(a) of the Internal Revenue 
14.36 	Code; 
15.1 	(15) for taxable years beginning before January 1, 2008, the amount of the federal 
15.2 	small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code 
15.3 	which is included in gross income under section 87 of the Internal Revenue Code; 
15.4 	(16) for a corporation whose foreign sales corporation, as defined in section 922 
15.5 	of the Internal Revenue Code, constituted a foreign operating corporation during any 
15.6 	taxable year ending before January 1, 1995, and a return was filed by August 15, 1996, 
15.7 	claiming the deduction under section 290.21, subdivision 4, for income received from 
15.8 	the foreign operating corporation, an amount equal to 1.23 multiplied by the amount of 
15.9 	income excluded under section 114 of the Internal Revenue Code, provided the income is 
15.10 	not income of a foreign operating company; 
15.11 	(17) any decrease in subpart F income, as defined in section 952(a) of the Internal 
15.12 	Revenue Code, for the taxable year when subpart F income is calculated without regard to 
15.13 	the provisions of Division C, title III, section 304(a)(1)-(2) 303(b) of Public Law 110-343; 
15.14 	(18) in each of the five tax years immediately following the tax year in which an 
15.15 	addition is required under subdivision 19c, clause (15), an amount equal to one-fifth of 
15.16 	the delayed depreciation. For purposes of this clause, "delayed depreciation" means the 
15.17 	amount of the addition made by the taxpayer under subdivision 19c, clause (15). The 
15.18 	resulting delayed depreciation cannot be less than zero; and
15.19 	(19) in each of the five tax years immediately following the tax year in which an 
15.20 	addition is required under subdivision 19c, clause (16), an amount equal to one-fifth of 
15.21 	the amount of the addition; and
15.22 	(20) to the extent included in federal taxable income, discharge of indebtedness 
15.23 	income resulting from reacquisition of business indebtedness included in federal taxable 
15.24 	income under section 108(i) of the Internal Revenue Code. This subtraction applies only 
15.25 	to the extent that the income was included in net income in a prior year as a result of the 
15.26 	addition under section 290.01, subdivision 19c, clause (25). 

15.27 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
15.28 	December 31, 2007, except that clause (20) is effective for taxable years ending after 
15.29 	December 31, 2008.

15.30 	Sec. 7. Minnesota Statutes 2008, section 290.01, subdivision 31, as amended by Laws 
15.31 	2009, chapter 12, article 1, section 7, is amended to read:
15.32 		Subd. 31.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
15.33 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
15.34 	31, 2008 March 31, 2009. Internal Revenue Code also includes any uncodified provision 
16.1 	in federal law that relates to provisions of the Internal Revenue Code that are incorporated 
16.2 	into Minnesota law.

16.3 	EFFECTIVE DATE. This section is effective the day following final enactment, 
16.4 	except the changes incorporated by federal changes are effective at the same time as the 
16.5 	changes were effective for federal purposes.

16.6 	Sec. 8. Minnesota Statutes 2008, section 290.06, subdivision 2c, is amended to read:
16.7 		Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income 
16.8 	taxes imposed by this chapter upon married individuals filing joint returns and surviving 
16.9 	spouses as defined in section 2(a) of the Internal Revenue Code must be computed by 
16.10 	applying to their taxable net income the following schedule of rates: 
16.11 	(1) On the first $25,680, 5.35 percent; 
16.12 	(2) On all over $25,680, but not over $102,030, 7.05 percent; 
16.13 	(3) On all over $102,030, 7.85 percent. 
16.14 	Married individuals filing separate returns, estates, and trusts must compute their 
16.15 	income tax by applying the above rates to their taxable income, except that the income 
16.16 	brackets will be one-half of the above amounts. 
16.17 	(b) The income taxes imposed by this chapter upon unmarried individuals must be 
16.18 	computed by applying to taxable net income the following schedule of rates: 
16.19 	(1) On the first $17,570, 5.35 percent; 
16.20 	(2) On all over $17,570, but not over $57,710, 7.05 percent; 
16.21 	(3) On all over $57,710, 7.85 percent. 
16.22 	(c) The income taxes imposed by this chapter upon unmarried individuals qualifying 
16.23 	as a head of household as defined in section 2(b) of the Internal Revenue Code must be 
16.24 	computed by applying to taxable net income the following schedule of rates: 
16.25 	(1) On the first $21,630, 5.35 percent; 
16.26 	(2) On all over $21,630, but not over $86,910, 7.05 percent; 
16.27 	(3) On all over $86,910, 7.85 percent. 
16.28 	(d) In lieu of a tax computed according to the rates set forth in this subdivision, the 
16.29 	tax of any individual taxpayer whose taxable net income for the taxable year is less than 
16.30 	an amount determined by the commissioner must be computed in accordance with tables 
16.31 	prepared and issued by the commissioner of revenue based on income brackets of not 
16.32 	more than $100. The amount of tax for each bracket shall be computed at the rates set 
16.33 	forth in this subdivision, provided that the commissioner may disregard a fractional part of 
16.34 	a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1. 
17.1 	(e) An individual who is not a Minnesota resident for the entire year must compute 
17.2 	the individual's Minnesota income tax as provided in this subdivision. After the 
17.3 	application of the nonrefundable credits provided in this chapter, the tax liability must 
17.4 	then be multiplied by a fraction in which: 
17.5 	(1) the numerator is the individual's Minnesota source federal adjusted gross income 
17.6 	as defined in section 62 of the Internal Revenue Code and increased by the additions 
17.7 	required under section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), and
17.8 	(13), (16), and (17), and reduced by the Minnesota assignable portion of the subtraction 
17.9 	for United States government interest under section 290.01, subdivision 19b, clause (1), 
17.10 	and the subtractions under section 290.01, subdivision 19b, clauses (9), (10), (14), (15), 
17.11 	and (16), and (18), after applying the allocation and assignability provisions of section 
17.12 	290.081, clause (a), or 290.17; and 
17.13 	(2) the denominator is the individual's federal adjusted gross income as defined in 
17.14 	section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in 
17.15 	section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), and (13), (16), and 
17.16 	(17), and reduced by the amounts specified in section 290.01, subdivision 19b, clauses (1), 
17.17 	(9), (10), (14), (15), and (16), and (18). 

17.18 	EFFECTIVE DATE. This section is effective for taxable years ending after 
17.19 	December 31, 2008.

17.20 	Sec. 9. Minnesota Statutes 2008, section 290.067, subdivision 2a, as amended by Laws 
17.21 	2009, chapter 12, article 1, section 8, is amended to read:
17.22 		Subd. 2a.Income. (a) For purposes of this section, "income" means the sum of 
17.23 	the following:
17.24 	(1) federal adjusted gross income as defined in section 62 of the Internal Revenue 
17.25 	Code; and
17.26 	(2) the sum of the following amounts to the extent not included in clause (1):
17.27 	(i) all nontaxable income;
17.28 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 
17.29 	469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity 
17.30 	loss carryover allowed under section 469(b) of the Internal Revenue Code;
17.31 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness 
17.32 	of a solvent individual excluded from gross income under section 108(g) of the Internal 
17.33 	Revenue Code;
17.34 	(iv) cash public assistance and relief;
18.1 	(v) any pension or annuity (including railroad retirement benefits, all payments 
18.2 	received under the federal Social Security Act, supplemental security income, and veterans 
18.3 	benefits), which was not exclusively funded by the claimant or spouse, or which was 
18.4 	funded exclusively by the claimant or spouse and which funding payments were excluded 
18.5 	from federal adjusted gross income in the years when the payments were made;
18.6 	(vi) interest received from the federal or a state government or any instrumentality 
18.7 	or political subdivision thereof;
18.8 	(vii) workers' compensation;
18.9 	(viii) nontaxable strike benefits;
18.10 	(ix) the gross amounts of payments received in the nature of disability income or 
18.11 	sick pay as a result of accident, sickness, or other disability, whether funded through 
18.12 	insurance or otherwise;
18.13 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
18.14 	1986, as amended through December 31, 1995;
18.15 	(xi) contributions made by the claimant to an individual retirement account, 
18.16 	including a qualified voluntary employee contribution; simplified employee pension plan; 
18.17 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) 
18.18 	of the Internal Revenue Code; or deferred compensation plan under section 457 of the 
18.19 	Internal Revenue Code;
18.20 	(xii) nontaxable scholarship or fellowship grants;
18.21 	(xiii) the amount of deduction allowed under section 199 of the Internal Revenue 
18.22 	Code; 
18.23 	(xiv) the amount of deduction allowed under section 220 or 223 of the Internal 
18.24 	Revenue Code;
18.25 	(xv) the amount of tuition expenses required to be added to income under section 
18.26 	290.01, subdivision 19a, clause (12); and
18.27 	(xvi) the amount deducted for certain expenses of elementary and secondary school 
18.28 	teachers under section 62(a)(2)(D) of the Internal Revenue Code; and
18.29 	(xvii) unemployment compensation.
18.30 	In the case of an individual who files an income tax return on a fiscal year basis, the 
18.31 	term "federal adjusted gross income" means federal adjusted gross income reflected in the 
18.32 	fiscal year ending in the next calendar year. Federal adjusted gross income may not be 
18.33 	reduced by the amount of a net operating loss carryback or carryforward or a capital loss 
18.34 	carryback or carryforward allowed for the year.
18.35 	(b) "Income" does not include:
19.1 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 
19.2 	102;
19.3 	(2) amounts of any pension or annuity that were exclusively funded by the claimant 
19.4 	or spouse if the funding payments were not excluded from federal adjusted gross income 
19.5 	in the years when the payments were made;
19.6 	(3) surplus food or other relief in kind supplied by a governmental agency;
19.7 	(4) relief granted under chapter 290A;
19.8 	(5) child support payments received under a temporary or final decree of dissolution 
19.9 	or legal separation; and
19.10 	(6) restitution payments received by eligible individuals and excludable interest as 
19.11 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 
19.12 	2001, Public Law 107-16.

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

19.15 	Sec. 10. Minnesota Statutes 2008, section 290.091, subdivision 2, is amended to read:
19.16 		Subd. 2. Definitions. For purposes of the tax imposed by this section, the following 
19.17 	terms have the meanings given: 
19.18 	(a) "Alternative minimum taxable income" means the sum of the following for 
19.19 	the taxable year: 
19.20 	(1) the taxpayer's federal alternative minimum taxable income as defined in section 
19.21 	55(b)(2) of the Internal Revenue Code; 
19.22 	(2) the taxpayer's itemized deductions allowed in computing federal alternative 
19.23 	minimum taxable income, but excluding: 
19.24 	(i) the charitable contribution deduction under section 170 of the Internal Revenue 
19.25 	Code;
19.26 	(ii) the medical expense deduction; 
19.27 	(iii) the casualty, theft, and disaster loss deduction; and 
19.28 	(iv) the impairment-related work expenses of a disabled person; 
19.29 	(3) for depletion allowances computed under section 613A(c) of the Internal 
19.30 	Revenue Code, with respect to each property (as defined in section 614 of the Internal 
19.31 	Revenue Code), to the extent not included in federal alternative minimum taxable income, 
19.32 	the excess of the deduction for depletion allowable under section 611 of the Internal 
19.33 	Revenue Code for the taxable year over the adjusted basis of the property at the end of the 
19.34 	taxable year (determined without regard to the depletion deduction for the taxable year); 
20.1 	(4) to the extent not included in federal alternative minimum taxable income, the 
20.2 	amount of the tax preference for intangible drilling cost under section 57(a)(2) of the 
20.3 	Internal Revenue Code determined without regard to subparagraph (E); 
20.4 	(5) to the extent not included in federal alternative minimum taxable income, the 
20.5 	amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and 
20.6 	(6) the amount of addition required by section 290.01, subdivision 19a, clauses 
20.7 	(7) to (9), (12), and (13), (16), and (17); 
20.8 	less the sum of the amounts determined under the following: 
20.9 	(1) interest income as defined in section 290.01, subdivision 19b, clause (1); 
20.10 	(2) an overpayment of state income tax as provided by section 290.01, subdivision 
20.11 	19b, clause (2), to the extent included in federal alternative minimum taxable income; 
20.12 	(3) the amount of investment interest paid or accrued within the taxable year on 
20.13 	indebtedness to the extent that the amount does not exceed net investment income, as 
20.14 	defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include 
20.15 	amounts deducted in computing federal adjusted gross income; and 
20.16 	(4) amounts subtracted from federal taxable income as provided by section 290.01, 
20.17 	subdivision 19b, clauses (6) and, (9) to (16), and (18). 
20.18 	In the case of an estate or trust, alternative minimum taxable income must be 
20.19 	computed as provided in section 59(c) of the Internal Revenue Code. 
20.20 	(b) "Investment interest" means investment interest as defined in section 163(d)(3) 
20.21 	of the Internal Revenue Code. 
20.22 	(c) "Tentative minimum tax" equals 6.4 percent of alternative minimum taxable 
20.23 	income after subtracting the exemption amount determined under subdivision 3. 
20.24 	(d) "Regular tax" means the tax that would be imposed under this chapter (without 
20.25 	regard to this section and section 290.032), reduced by the sum of the nonrefundable 
20.26 	credits allowed under this chapter. 
20.27 	(e) "Net minimum tax" means the minimum tax imposed by this section. 

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

20.30 	Sec. 11. Minnesota Statutes 2008, section 290A.03, subdivision 3, as amended by 
20.31 	Laws 2009, chapter 12, article 1, section 9, is amended to read:
20.32 		Subd. 3.Income. (1) "Income" means the sum of the following:
20.33 	(a) federal adjusted gross income as defined in the Internal Revenue Code; and
20.34 	(b) the sum of the following amounts to the extent not included in clause (a):
20.35 	(i) all nontaxable income;
21.1 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 
21.2 	469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity 
21.3 	loss carryover allowed under section 469(b) of the Internal Revenue Code;
21.4 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness 
21.5 	of a solvent individual excluded from gross income under section 108(g) of the Internal 
21.6 	Revenue Code;
21.7 	(iv) cash public assistance and relief;
21.8 	(v) any pension or annuity (including railroad retirement benefits, all payments 
21.9 	received under the federal Social Security Act, Supplemental Security Income, and 
21.10 	veterans benefits), which was not exclusively funded by the claimant or spouse, or which 
21.11 	was funded exclusively by the claimant or spouse and which funding payments were 
21.12 	excluded from federal adjusted gross income in the years when the payments were made;
21.13 	(vi) interest received from the federal or a state government or any instrumentality 
21.14 	or political subdivision thereof;
21.15 	(vii) workers' compensation;
21.16 	(viii) nontaxable strike benefits;
21.17 	(ix) the gross amounts of payments received in the nature of disability income or 
21.18 	sick pay as a result of accident, sickness, or other disability, whether funded through 
21.19 	insurance or otherwise;
21.20 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
21.21 	1986, as amended through December 31, 1995;
21.22 	(xi) contributions made by the claimant to an individual retirement account, 
21.23 	including a qualified voluntary employee contribution; simplified employee pension plan; 
21.24 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) 
21.25 	of the Internal Revenue Code; or deferred compensation plan under section 457 of the 
21.26 	Internal Revenue Code;
21.27 	(xii) nontaxable scholarship or fellowship grants;
21.28 	(xiii) the amount of deduction allowed under section 199 of the Internal Revenue 
21.29 	Code; 
21.30 	(xiv) the amount of deduction allowed under section 220 or 223 of the Internal 
21.31 	Revenue Code;
21.32 	(xv) the amount of tuition expenses required to be added to income under section 
21.33 	290.01, subdivision 19a, clause (12); and
21.34 	(xvi) the amount deducted for certain expenses of elementary and secondary school 
21.35 	teachers under section 62(a)(2)(D) of the Internal Revenue Code; and
21.36 	(xvii) unemployment compensation.
22.1 	In the case of an individual who files an income tax return on a fiscal year basis, the 
22.2 	term "federal adjusted gross income" shall mean federal adjusted gross income reflected 
22.3 	in the fiscal year ending in the calendar year. Federal adjusted gross income shall not be 
22.4 	reduced by the amount of a net operating loss carryback or carryforward or a capital loss 
22.5 	carryback or carryforward allowed for the year.
22.6 	(2) "Income" does not include:
22.7 	(a) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 
22.8 	102;
22.9 	(b) amounts of any pension or annuity which was exclusively funded by the claimant 
22.10 	or spouse and which funding payments were not excluded from federal adjusted gross 
22.11 	income in the years when the payments were made;
22.12 	(c) surplus food or other relief in kind supplied by a governmental agency;
22.13 	(d) relief granted under this chapter;
22.14 	(e) child support payments received under a temporary or final decree of dissolution 
22.15 	or legal separation; or
22.16 	(f) restitution payments received by eligible individuals and excludable interest as 
22.17 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 
22.18 	2001, Public Law 107-16.
22.19 	(3) The sum of the following amounts may be subtracted from income:
22.20 	(a) for the claimant's first dependent, the exemption amount multiplied by 1.4;
22.21 	(b) for the claimant's second dependent, the exemption amount multiplied by 1.3;
22.22 	(c) for the claimant's third dependent, the exemption amount multiplied by 1.2;
22.23 	(d) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
22.24 	(e) for the claimant's fifth dependent, the exemption amount; and
22.25 	(f) if the claimant or claimant's spouse was disabled or attained the age of 65 
22.26 	on or before December 31 of the year for which the taxes were levied or rent paid, the 
22.27 	exemption amount.
22.28 	For purposes of this subdivision, the "exemption amount" means the exemption 
22.29 	amount under section 151(d) of the Internal Revenue Code for the taxable year for which 
22.30 	the income is reported.

22.31 	EFFECTIVE DATE. This section is effective for property tax refunds based on 
22.32 	property taxes payable after December 31, 2009, and rent paid after December 31, 2008, 
22.33 	and thereafter.

22.34 	Sec. 12. Minnesota Statutes 2008, section 290A.03, subdivision 15, as amended by 
22.35 	Laws 2009, chapter 12, article 1, section 10, is amended to read:
23.1 		Subd. 15.Internal Revenue Code.  "Internal Revenue Code" means the Internal 
23.2 	Revenue Code of 1986, as amended through December 31, 2008 March 31, 2009.

23.3 	EFFECTIVE DATE. This section is effective for property tax refunds based on 
23.4 	property taxes payable after December 31, 2009, and rent paid after December 31, 2008, 
23.5 	and thereafter.

23.6 	Sec. 13. Minnesota Statutes 2008, section 291.005, subdivision 1, as amended by Laws 
23.7 	2009, chapter 12, article 1, section 11, is amended to read:
23.8 		Subdivision 1.Scope. Unless the context otherwise clearly requires, the following 
23.9 	terms used in this chapter shall have the following meanings:
23.10 	(1) "Federal gross estate" means the gross estate of a decedent as valued and 
23.11 	otherwise determined for federal estate tax purposes by federal taxing authorities pursuant 
23.12 	to the provisions of the Internal Revenue Code.
23.13 	(2) "Minnesota gross estate" means the federal gross estate of a decedent after (a) 
23.14 	excluding therefrom any property included therein which has its situs outside Minnesota, 
23.15 	and (b) including therein any property omitted from the federal gross estate which is 
23.16 	includable therein, has its situs in Minnesota, and was not disclosed to federal taxing 
23.17 	authorities.
23.18 	(3) "Personal representative" means the executor, administrator or other person 
23.19 	appointed by the court to administer and dispose of the property of the decedent. If there 
23.20 	is no executor, administrator or other person appointed, qualified, and acting within this 
23.21 	state, then any person in actual or constructive possession of any property having a situs in 
23.22 	this state which is included in the federal gross estate of the decedent shall be deemed 
23.23 	to be a personal representative to the extent of the property and the Minnesota estate tax 
23.24 	due with respect to the property.
23.25 	(4) "Resident decedent" means an individual whose domicile at the time of death 
23.26 	was in Minnesota.
23.27 	(5) "Nonresident decedent" means an individual whose domicile at the time of 
23.28 	death was not in Minnesota.
23.29 	(6) "Situs of property" means, with respect to real property, the state or country in 
23.30 	which it is located; with respect to tangible personal property, the state or country in which 
23.31 	it was normally kept or located at the time of the decedent's death; and with respect to 
23.32 	intangible personal property, the state or country in which the decedent was domiciled 
23.33 	at death.
23.34 	(7) "Commissioner" means the commissioner of revenue or any person to whom the 
23.35 	commissioner has delegated functions under this chapter.
24.1 	(8) "Internal Revenue Code" means the United States Internal Revenue Code of 
24.2 	1986, as amended through December 31, 2008 March 31, 2009.
24.3 	(9) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as 
24.4 	defined by section 2011(b)(3) of the Internal Revenue Code, increased by the amount of 
24.5 	deduction for state death taxes allowed under section 2058 of the Internal Revenue Code.

24.6 	EFFECTIVE DATE. This section is effective the day following final enactment, 
24.7 	except the changes incorporated by federal changes are effective at the same time as the 
24.8 	changes were effective for federal purposes.

24.9 	ARTICLE 2
24.10 	PROPERTY TAXES

24.11 	Section 1. Minnesota Statutes 2008, section 124D.4531, is amended by adding a 
24.12 	subdivision to read:
24.13 		Subd. 5.Allocation from districts participating in agreements for secondary 
24.14 	education or interdistrict cooperation. For purposes of this section, a district with a 
24.15 	career and technical program approved under this section that participates in an agreement 
24.16 	under section 123A.30 or 123A.32 must allocate its levy authority under this section 
24.17 	among participating districts.

24.18 	EFFECTIVE DATE. This section is effective retroactively for taxes payable in 
24.19 	2008.

24.20 	Sec. 2. Minnesota Statutes 2008, section 126C.41, subdivision 2, is amended to read:
24.21 		Subd. 2.Retired employee health benefits. A district may levy an amount up to the 
24.22 	amount the district is required by the collective bargaining agreement in effect on March 
24.23 	30, 1992, to pay for health insurance or unreimbursed medical expenses for licensed 
24.24 	and nonlicensed employees who have terminated services in the employing district and 
24.25 	withdrawn from active teaching service or other active service, as applicable, either (1) 
24.26 	before July 1, 1992, or (2) before July 1, 1998, but for employees retiring after June 30, 
24.27 	1992, and before July 1, 1998, only if a sunset clause is in effect for the current collective 
24.28 	bargaining agreement. The total amount of the levy each year may not exceed $600,000.

24.29 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
24.30 	thereafter.

24.31 	Sec. 3. Minnesota Statutes 2008, section 144F.01, subdivision 3, is amended to read:
25.1 		Subd. 3.Board. The special taxing district under this section is governed by a 
25.2 	board made up initially of representatives of each participating political subdivision in 
25.3 	the proportions set out in the establishing resolution, subject to change as provided in the 
25.4 	district's charter, if any, or in the district's bylaws. If a township states in its resolution that 
25.5 	less than the entire township will participate in the district, the partial townships shall be 
25.6 	represented on the board by only one member, appointed from among those townships 
25.7 	so participating. The method for appointment shall be governed by the bylaws of the 
25.8 	district's joint powers agreement. Each participant's representative serves at the pleasure 
25.9 	of that participant's governing body or bodies.

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

25.11 	Sec. 4. Minnesota Statutes 2008, section 272.02, subdivision 7, is amended to read:
25.12 		Subd. 7.Institutions of public charity. (a) Institutions of purely public charity that 
25.13 	are exempt from federal income taxation under section 501(c)(3) of the Internal Revenue 
25.14 	Code are exempt. if they meet the requirements of this subdivision. In determining 
25.15 	whether real property is exempt under this subdivision, the following factors must be 
25.16 	considered:
25.17 	(1) whether the stated purpose of the undertaking is to be helpful to others without 
25.18 	immediate expectation of material reward;
25.19 	(2) whether the institution of public charity is supported by material donations, gifts, 
25.20 	or government grants for services to the public in whole or in part;
25.21 	(3) whether a material number of the recipients of the charity receive benefits or 
25.22 	services at reduced or no cost, or whether the organization provides services to the public 
25.23 	that alleviate burdens or responsibilities that would otherwise be borne by the government;
25.24 	(4) whether the income received, including material gifts and donations, produces a 
25.25 	profit to the charitable institution that is not distributed to private interests;
25.26 	(5) whether the beneficiaries of the charity are restricted or unrestricted, and, if 
25.27 	restricted, whether the class of persons to whom the charity is made available is one 
25.28 	having a reasonable relationship to the charitable objectives; and
25.29 	(6) whether dividends, in form or substance, or assets upon dissolution, are not 
25.30 	available to private interests.
25.31 	A charitable organization must satisfy the factors in clauses (1) to (6) for its property 
25.32 	to be exempt under this subdivision, unless there is a reasonable justification for failing to 
25.33 	meet the factors in clause (2), (3), or (5), and the organization provides to the assessor the 
25.34 	factual basis for that justification. If there is reasonable justification for failing to meet 
25.35 	the factors in clause (2), (3), or (5), an organization is a purely public charity under this 
26.1 	subdivision without meeting those factors. After an exemption is properly granted under 
26.2 	this subdivision, it will remain in effect unless there is a material change in facts.
26.3 	(b) For purposes of this subdivision, a grant is a written instrument or electronic 
26.4 	document defining a legal relationship between a granting agency and a grantee when 
26.5 	the principal purpose of the relationship is to transfer cash or something of value to the 
26.6 	grantee to support a public purpose authorized by law in a general manner instead of 
26.7 	acquiring by professional or technical contract, purchase, lease, or barter property or 
26.8 	services for the direct benefit or use of the granting agency.
26.9 	(c) In determining whether rental housing property qualifies for exemption under 
26.10 	this subdivision, the following are not gifts or donations to the owner of the rental housing:
26.11 	(1) rent assistance provided by the government to or on behalf of tenants; and
26.12 	(2) financing assistance or tax credits provided by the government to the owner on 
26.13 	condition that specific units or a specific quantity of units be set aside for persons or 
26.14 	families with certain income characteristics.

26.15 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
26.16 	thereafter.

26.17 	Sec. 5. Minnesota Statutes 2008, section 272.02, subdivision 55, is amended to read:
26.18 		Subd. 55.Electric generation facility; personal property. Notwithstanding 
26.19 	subdivision 9, clause (a), attached machinery and other personal property which is part of 
26.20 	an electric generating facility that meets the requirements of this subdivision is exempt. At 
26.21 	the time of construction, the facility must (i) be eligible to be designated as an innovative 
26.22 	energy project as defined in under section 216B.1694, except that, notwithstanding 
26.23 	anything to the contrary in section 216B.1694, a project may include gas-fired generating 
26.24 	facilities that are adaptable for subsequent incorporation into a facility that uses coal as 
26.25 	a primary fuel, provided that this exception applies only to the eligibility for exemption 
26.26 	under this section, (ii) be within a tax relief area as defined in section 273.134, (iii) have 
26.27 	access to existing railroad infrastructure within less than three miles, (iv) have received by 
26.28 	resolution approval from the governing body of the county and township or city in which 
26.29 	the proposed facility is to be located for the exemption of personal property under this 
26.30 	subdivision, and (v) be designed to host at least 500 megawatts of electrical generation.
26.31 	Construction of the first 500 100 megawatts of the facility must be commenced after 
26.32 	January 1, 2006, and before January 1, 2012. Construction of up to an additional 750 
26.33 	megawatts of generation must be commenced before January 1, 2015. Property eligible 
26.34 	for this exemption does not include electric transmission lines and interconnections or gas 
26.35 	pipelines and interconnections appurtenant to the property or the facility. To qualify for an 
27.1 	exemption under this subdivision, the owner of the electric generation facility must have 
27.2 	an agreement with the host county, township or city, and school district, for payment in 
27.3 	lieu of personal property taxes to the host county, township or city, and school district.

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

27.5 	Sec. 6. Minnesota Statutes 2008, section 272.02, subdivision 86, is amended to read:
27.6 		Subd. 86. Apprenticeship training facilities. All or a portion of a building used 
27.7 	exclusively for a state-approved apprenticeship program through the Department of 
27.8 	Labor and Industry is exempt if (1) it is owned and operated by a nonprofit corporation
27.9 	organization or a nonprofit trust, and operated by a nonprofit organization or a nonprofit 
27.10 	trust, (2) the program participants receive no compensation, and (3) it is located in the 
27.11 	Minneapolis and St. Paul standard metropolitan statistical area as determined by the 2000 
27.12 	federal census or in a city outside the Minneapolis and St. Paul standard metropolitan 
27.13 	statistical area that has a population of 7,500 or greater according to the most recent 
27.14 	federal census. Use of the property for advanced skills training of incumbent workers does 
27.15 	not disqualify the property for the exemption under this subdivision. This exemption 
27.16 	does not include includes up to five acres of the land on which the building is located and 
27.17 	associated parking areas on that land. If a parking area associated with the facility is 
27.18 	used for the purposes of the facility and for other purposes, a portion of the parking area 
27.19 	shall be exempt in proportion to the square footage of the facility used for purposes of 
27.20 	apprenticeship training. 

27.21 	EFFECTIVE DATE. This section is effective for assessment year 2009, for taxes 
27.22 	payable in 2010, and thereafter.

27.23 	Sec. 7. Minnesota Statutes 2008, section 272.02, is amended by adding a subdivision 
27.24 	to read:
27.25 		Subd. 90.Nursing homes. A nursing home licensed under section 144A.02 or a 
27.26 	boarding care home certified as a nursing facility under title 19 of the Social Security 
27.27 	Act that is exempt from federal income taxation pursuant to section 501(c)(3) of the 
27.28 	Internal Revenue Code is exempt from property taxation if the nursing home or boarding 
27.29 	care home either:
27.30 	(1) is certified to participate in the medical assistance program under title 19 of 
27.31 	the Social Security Act; or
27.32 	(2) certifies to the commissioner of revenue that it does not discharge residents 
27.33 	due to the inability to pay.

28.1 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
28.2 	thereafter.

28.3 	Sec. 8. Minnesota Statutes 2008, section 272.02, is amended by adding a subdivision 
28.4 	to read:
28.5 		Subd. 91.Railroad wye connections. Any real or personal property of a railroad 
28.6 	wye connection, including the track, ties, ballast, switch gear, and related improvements, 
28.7 	is exempt if it meets all of the following: (1) is publicly owned; (2) is funded, in whole or 
28.8 	in part, by state grants; (3) is located within the metropolitan area as defined in section 
28.9 	473.121, subdivision 2; (4) includes a single track segment that is no longer than 2,500 feet 
28.10 	in length; (5) connects intersecting rail lines; and (6) is constructed after January 1, 2009.

28.11 	EFFECTIVE DATE. This section is effective for assessment year 2009 and 
28.12 	thereafter, for taxes payable in 2010 and thereafter.

28.13 	Sec. 9. Minnesota Statutes 2008, section 272.02, is amended by adding a subdivision 
28.14 	to read:
28.15 		Subd. 92.Electric generation facility; personal property. (a) Notwithstanding 
28.16 	subdivision 9, clause (a), attached machinery and other personal property that is part of 
28.17 	an electric generation facility that exceeds 150 megawatts of installed capacity, does 
28.18 	not exceed 780 megawatts of summer capacity, and that meets the requirements of this 
28.19 	subdivision, is exempt. At the start of construction, the facility must:
28.20 	(1) be designed to utilize natural gas as a primary fuel;
28.21 	(2) be owned by an entity other than a public utility as defined in section 216B.02, 
28.22 	subdivision 4;
28.23 	(3) be located within five miles of two or more interstate natural gas pipelines;
28.24 	(4) be located within one mile of an existing electrical transmission substation with 
28.25 	operating alternating current voltages of 115 kV, 345 kV, and 500 kV;
28.26 	(5) be designed to provide electrical capacity, energy, and ancillary services;
28.27 	(6) have satisfied all of the requirements under section 216B.243;
28.28 	(7) have executed an interconnection agreement with the Midwest Independent 
28.29 	System Operator that does not require the acquisition of more than one mile of new 
28.30 	electric transmission right-of-way within the county where the facility is located, and does 
28.31 	not provide for any other new routes or corridors for future electric transmission lines in 
28.32 	the county where the facility is located;
28.33 	(8) be located in a county with an essential services and transmission services 
28.34 	ordinance;
29.1 	(9) have signed a development agreement with the county board in the county in 
29.2 	which the facility is located. The development agreement must be adopted by a two-thirds 
29.3 	vote of the county board, and must contain provisions ensuring:
29.4 	(i) the facility is designed to use effluent from a wastewater treatment facility as 
29.5 	its preferred water source if it includes any combined-cycle units, and will not seek an 
29.6 	exemption from legislative approval under section 103G.265, subdivision 3, paragraph 
29.7 	(b); and
29.8 	(ii) all processed wastewater discharge will be colocated with the outfall of a 
29.9 	wastewater treatment facility;
29.10 	(10) have signed a development agreement with the township board in the township 
29.11 	in which the facility is located containing provisions ensuring that noise and visual 
29.12 	impacts of the facility are mitigated. The development agreement must be adopted by a 
29.13 	two-thirds vote of the township board; and
29.14 	(11) have an agreement with the host county, township, and school district for 
29.15 	payment in lieu of personal property taxes to the host county, township, and school 
29.16 	district for a total amount not to exceed $600,000 per year for the operating life of the 
29.17 	facility. Any amount distributed to the school district is not subject to the deductions 
29.18 	under section 126C.21.
29.19 	(b) Construction of the facility must begin after March 1, 2010, and before March 1, 
29.20 	2014. Property eligible for this exemption does not include electric transmission lines and 
29.21 	interconnections or gas pipelines and interconnections appurtenant to the facility.

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

29.23 	Sec. 10. Minnesota Statutes 2008, section 272.02, is amended by adding a subdivision 
29.24 	to read:
29.25 		Subd. 93.Electric generation facility; personal property. Notwithstanding 
29.26 	subdivision 9, clause (a), attached machinery and other personal property that is part of 
29.27 	a simple-cycle electric generation facility of more than 40 megawatts and less than 125 
29.28 	megawatts of installed capacity and that meets the requirements of this subdivision is 
29.29 	exempt. At the time of construction, the facility must:
29.30 	(1) utilize natural gas as a primary fuel;
29.31 	(2) be located within two miles of parallel existing 36-inch natural gas pipelines and 
29.32 	an existing 115-kilovolt high-voltage electric transmission line;
29.33 	(3) be designed to provide peaking, emergency backup, or contingency services;
29.34 	(4) satisfy a resource deficiency identified in an approved integrated resource plan 
29.35 	filed under section 216B.2422; and
30.1 	(5) have an agreement with the host county, township, and school district for 
30.2 	payment in lieu of personal property taxes to the host county, township, and school district 
30.3 	for the operating life of the facility. Any amount distributed to the school district is not 
30.4 	subject to the deductions under section 126C.21.
30.5 	Construction of the facility must be commenced after January 1, 2010, and 
30.6 	before January 1, 2014. Property eligible for this exemption does not include electric 
30.7 	transmission lines and interconnections or gas pipelines and interconnections appurtenant 
30.8 	to the property or the facility.

30.9 	EFFECTIVE DATE. This section is effective for assessments in 2011, taxes 
30.10 	payable in 2012, and thereafter.

30.11 	Sec. 11. Minnesota Statutes 2008, section 272.02, is amended by adding a subdivision 
30.12 	to read:
30.13 		Subd. 94.Elderly living facility. (a) The first $5,000,000 in market value of an 
30.14 	elderly living facility is exempt from taxation if it meets all of the following requirements:
30.15 	(1) the facility consists of no more than 75 living units;
30.16 	(2) the facility is located in a city of the first class with a population of more than 
30.17 	350,000;
30.18 	(3) the facility is owned and operated by a nonprofit corporation organized under 
30.19 	chapter 317A; 
30.20 	(4) the owner of the facility is an affiliate of entities that own and operate assisted 
30.21 	living and skilled nursing facilities that:
30.22 	(i) are located across a street from the facility;
30.23 	(ii) are adjacent to a church that is exempt from taxation under subdivision 6;
30.24 	(iii) include a congregate dining program; and 
30.25 	(iv) provide assisted living or similar social and physical support;
30.26 	(5) the residents of the facility must be:
30.27 	(i) at least 62 years of age; or
30.28 	(ii) handicapped;
30.29 	(6) at least 30 percent of the units in the facility are occupied by persons whose 
30.30 	annual income does not exceed 50 percent of median family income for the area; and 
30.31 	(7) before the effective date of this subdivision, the facility has received approval of 
30.32 	street vacation and land use applications from the city in which it is to be located.
30.33 	(b) In this subdivision, "affiliate" means any entity directly or indirectly controlling 
30.34 	or controlled by or under direct or indirect common control with an entity, and "control" 
31.1 	means the power to direct management and policies through membership or ownership 
31.2 	of voting securities.
31.3 	(c) The exemption provided in this subdivision applies to taxes levied in each 
31.4 	year or partial year of the term of the facility's initial permanent financing or 25 years, 
31.5 	whichever is later.

31.6 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2010.

31.7 	Sec. 12. Minnesota Statutes 2008, section 272.029, subdivision 6, is amended to read:
31.8 		Subd. 6.Distribution of revenues. Revenues from the taxes imposed under 
31.9 	subdivision 5 must be part of the settlement between the county treasurer and the county 
31.10 	auditor under section 276.09. The revenue must be distributed by the county auditor or the 
31.11 	county treasurer to local taxing jurisdictions in which the wind energy conversion system 
31.12 	is located as follows: beginning with distributions in 2006 2010, 80 percent to counties; 
31.13 	and 20 percent to cities and townships; and for distributions occurring in 2006 to 2009, 80 
31.14 	percent to counties; 14 percent to cities and townships; and six percent to school districts; 
31.15 	and for distributions occurring in 2004 and 2005 in the same proportion that each of the 
31.16 	local taxing jurisdiction's current year's net tax capacity based tax rate is to the current 
31.17 	year's total local net tax capacity based rate.

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

31.19 	Sec. 13. Minnesota Statutes 2008, section 273.11, subdivision 23, is amended to read:
31.20 		Subd. 23.First tier valuation limit; agricultural homestead property. (a) 
31.21 	Beginning with assessment year 2006, The commissioner of revenue shall annually certify 
31.22 	the first tier limit for agricultural homestead property as. For assessment year 2010, the 
31.23 	limit is $1,140,000. Beginning with assessment year 2011, the limit is the product of (i) 
31.24 	$600,000 the first tier limit for the preceding assessment year, and (ii) the ratio of the 
31.25 	statewide average taxable market value of agricultural property per acre of deeded farm 
31.26 	land in the preceding assessment year to the statewide average taxable market value of 
31.27 	agricultural property per acre of deeded farm land for the second preceding assessment 
31.28 	year 2004. The limit shall be rounded to the nearest $10,000.
31.29 	(b) For the purposes of this subdivision, "agricultural property" means all class 
31.30 	2 2a property under section 273.13, subdivision 23, except for (1) timberland, (2) a 
31.31 	landing area or public access area of a privately owned public use airport, and (3) property 
31.32 	consisting of the house, garage, and immediately surrounding one acre of land of an 
31.33 	agricultural homestead.
32.1 	(c) The commissioner shall certify the limit by January 2 of each assessment year, 
32.2 	except that for assessment year 2006 the commissioner shall certify the limit by June 
32.3 	1, 2006.

32.4 	EFFECTIVE DATE. This section is effective for taxes payable in 2011 and 
32.5 	thereafter.

32.6 	Sec. 14. Minnesota Statutes 2008, section 273.111, subdivision 4, is amended to read:
32.7 		Subd. 4.Determination of value. (a) The value of any real estate described 
32.8 	in subdivision 3 shall upon timely application by the owner, in the manner provided 
32.9 	in subdivision 8, be determined solely with reference to its appropriate agricultural 
32.10 	classification and value notwithstanding sections 272.03, subdivision 8, and 273.11. 
32.11 	Furthermore, the assessor shall not consider any added values resulting from 
32.12 	nonagricultural factors. In order to account for the presence of nonagricultural influences 
32.13 	that may affect the value of agricultural land, the commissioner of revenue shall develop a 
32.14 	fair and uniform method of determining agricultural values for each county in the state 
32.15 	that are consistent with this subdivision. The commissioner shall annually assign the 
32.16 	resulting values to each county, and these values shall be used as the basis for determining 
32.17 	the agricultural value for all properties in the county qualifying for tax deferment under 
32.18 	this section.
32.19 	(b) In the case of property qualifying for tax deferment only under subdivision 3a, 
32.20 	the value shall be based on the value in effect for assessment year 2008, multiplied by 
32.21 	the ratio of the total taxable market value of all property in the county for the current 
32.22 	assessment year divided by the total taxable market value of all property in the county for 
32.23 	assessment year 2008 assessor shall not consider the presence of commercial, industrial, 
32.24 	residential, or seasonal recreational land use influences in determining the value for ad 
32.25 	valorem tax purposes provided that in no case shall the value exceed the value prescribed 
32.26 	by the commissioner of revenue for class 2a tillable property in that county.

32.27 	EFFECTIVE DATE. This section is effective for assessment year 2009 and 
32.28 	thereafter.

32.29 	Sec. 15. Minnesota Statutes 2008, section 273.111, is amended by adding a subdivision 
32.30 	to read:
32.31 		Subd. 9a.Cross-compliance with agricultural chemical and water laws. (a) A 
32.32 	parcel of property enrolled under this section whose owner is subject to two or more final 
32.33 	enforcement actions for violations of chapter 18B, 18C, 18D, 103E, 103F, 103G, or 103H, 
33.1 	or any rule adopted under these chapters including but not limited to the agricultural 
33.2 	shoreland use standards in Minnesota Rules, chapter 6120, occurring on the parcel, shall 
33.3 	be subject to a property tax penalty as defined in this subdivision.
33.4 	(b) For the purposes of this subdivision, "final enforcement action" means any 
33.5 	administrative, civil, or criminal penalty other than a verbal or written warning. An 
33.6 	enforcement action is not final until any time period for corrective action has expired, 
33.7 	and until the completion or expiration of any applicable review or appeal procedure or 
33.8 	period provided by law.
33.9 	(c) The first time a final enforcement action is taken based on a violation occurring 
33.10 	on a parcel enrolled under this section, the owner must be notified that if a second final 
33.11 	enforcement action is issued, the property is subject to a property tax penalty, as defined 
33.12 	in this subdivision.
33.13 	(d) When a second final enforcement action is taken based on a violation occurring 
33.14 	on a parcel enrolled under this section within three years from the first violation, the law 
33.15 	enforcement officer or other person enforcing the law or rule must notify the county 
33.16 	auditor. The auditor must then determine the property tax penalty, equal to the deferred 
33.17 	taxes on the parcel for the current year and the two previous years, but not to exceed the 
33.18 	current owner's time of ownership, and extend the penalty against the property on the tax 
33.19 	list for the current year, provided that no interest or penalties shall be levied on the penalty 
33.20 	if timely paid. The penalty levied under this subdivision is in addition to any additional 
33.21 	taxes levied under subdivision 9 at the time a property is withdrawn from the program.

33.22 	EFFECTIVE DATE. This section is effective for final enforcement actions issued 
33.23 	after January 1, 2010, and before December 31, 2013.

33.24 	Sec. 16. Minnesota Statutes 2008, section 273.113, subdivision 1, is amended to read:
33.25 		Subdivision 1.Definition. For the purposes of this section, the following terms 
33.26 	have the meanings given to them:
33.27 	(1) "proposed bovine tuberculosis modified accredited zone" means the modified 
33.28 	accredited zone proposed designated by the Board of Animal Health under section 35.244; 
33.29 	and
33.30 	(2) "located within" means that the herd is kept in the area for at least a part of 
33.31 	calendar year 2006, 2007, or 2008; and
33.32 	(3) "animal" means cattle, bison, goats, and farmed cervidae.

33.33 	EFFECTIVE DATE. This section is effective for property taxes payable in 2010 
33.34 	and thereafter.

34.1 	Sec. 17. Minnesota Statutes 2008, section 273.113, subdivision 2, is amended to read:
34.2 		Subd. 2.Eligibility; amount of credit. Agricultural and rural vacant land classified 
34.3 	under section 273.13, subdivision 23, located within a proposed bovine tuberculosis 
34.4 	modified accredited zone is eligible for a property tax credit equal to the property tax
34.5 	greater of: (1) $5 per acre on the parcelfirst 160 acres of the property where the herd had 
34.6 	been located, excluding any tax attributable to residential structures.; or (2) an amount 
34.7 	equal to $5 per acre times five acres times the highest number of animals tested on the 
34.8 	property for bovine tuberculosis in a whole-herd test as reported by the Board of Animal 
34.9 	Health in 2006, 2007, or 2008. The amount of the credit cannot exceed the property tax 
34.10 	payable on the property where the herd had been located, excluding any tax attributable 
34.11 	to residential structures. To begin to qualify for the tax credit, the owner shall file an 
34.12 	application with the county by December 1 of the levy year. The credit must be given 
34.13 	for each subsequent taxes payable year until the credit terminates under subdivision 4. 
34.14 	The assessor shall indicate the amount of the property tax reduction on the property tax 
34.15 	statement of each taxpayer receiving a credit under this section. The credit paid pursuant 
34.16 	to this section shall be deducted from the tax due on the property as provided in section 
34.17 	273.1393.

34.18 	EFFECTIVE DATE. This section is effective for property taxes payable in 2010 
34.19 	and thereafter.

34.20 	Sec. 18. Minnesota Statutes 2008, section 273.13, subdivision 25, is amended to read:
34.21 		Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more 
34.22 	units and used or held for use by the owner or by the tenants or lessees of the owner 
34.23 	as a residence for rental periods of 30 days or more, excluding property qualifying for 
34.24 	class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other 
34.25 	than hospitals exempt under section 272.02, and contiguous property used for hospital 
34.26 	purposes, without regard to whether the property has been platted or subdivided. The 
34.27 	market value of class 4a property has a class rate of 1.25 percent. 
34.28 	(b) Class 4b includes: 
34.29 	(1) residential real estate containing less than four units that does not qualify as class 
34.30 	4bb, other than seasonal residential recreational property; 
34.31 	(2) manufactured homes not classified under any other provision; 
34.32 	(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead 
34.33 	farm classified under subdivision 23, paragraph (b) containing two or three units; and 
34.34 	(4) unimproved property that is classified residential as determined under subdivision 
34.35 	33. 
35.1 	The market value of class 4b property has a class rate of 1.25 percent. 
35.2 	(c) Class 4bb includes: 
35.3 	(1) nonhomestead residential real estate containing one unit, other than seasonal 
35.4 	residential recreational property; and 
35.5 	(2) a single family dwelling, garage, and surrounding one acre of property on a 
35.6 	nonhomestead farm classified under subdivision 23, paragraph (b). 
35.7 	Class 4bb property has the same class rates as class 1a property under subdivision 22. 
35.8 	Property that has been classified as seasonal residential recreational property at 
35.9 	any time during which it has been owned by the current owner or spouse of the current 
35.10 	owner does not qualify for class 4bb. 
35.11 	(d) Class 4c property includes: 
35.12 	(1) except as provided in subdivision 22, paragraph (c), or subdivision 23, paragraph 
35.13 	(b), clause (1), real and personal property devoted to temporary and seasonal residential 
35.14 	occupancy for recreation purposes, including real and personal property devoted to 
35.15 	temporary and seasonal residential occupancy for recreation purposes and not devoted to 
35.16 	commercial purposes for more than 250 days in the year preceding the year of assessment. 
35.17 	For purposes of this clause, property is devoted to a commercial purpose on a specific 
35.18 	day if any portion of the property is used for residential occupancy, and a fee is charged 
35.19 	for residential occupancy. Class 4c property must contain three or more rental units. A 
35.20 	"rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual 
35.21 	camping site equipped with water and electrical hookups for recreational vehicles. Class 
35.22 	4c property must provide recreational activities such as renting ice fishing houses, boats 
35.23 	and motors, snowmobiles, downhill or cross-country ski equipment; provide marina 
35.24 	services, launch services, or guide services; or sell bait and fishing tackle. A camping 
35.25 	pad offered for rent by a property that otherwise qualifies for class 4c is also class 4c 
35.26 	regardless of the term of the rental agreement, as long as the use of the camping pad 
35.27 	does not exceed 250 days. In order for a property to be classified as class 4c, seasonal 
35.28 	residential recreational for commercial purposes under this clause, at least 40 percent of 
35.29 	the annual gross lodging receipts related to the property must be from business conducted 
35.30 	during 90 consecutive days and either (i) at least 60 percent of all paid bookings by 
35.31 	lodging guests during the year must be for periods of at least two consecutive nights; or 
35.32 	(ii) at least 20 percent of the annual gross receipts must be from charges for rental of fish 
35.33 	houses, boats and motors, snowmobiles, downhill or cross-country ski equipment, or 
35.34 	charges for marina services, launch services, and guide services, or the sale of bait and 
35.35 	fishing tackle. For purposes of this determination, a paid booking of five or more nights 
35.36 	shall be counted as two bookings. Class 4c also includes commercial use real property 
36.1 	used exclusively for recreational purposes in conjunction with class 4c property devoted 
36.2 	to temporary and seasonal residential occupancy for recreational purposes, up to a total of 
36.3 	two acres, provided the property is not devoted to commercial recreational use for more 
36.4 	than 250 days in the year preceding the year of assessment and is located within two 
36.5 	miles of the class 4c property with which it is used. Owners of real and personal property 
36.6 	devoted to temporary and seasonal residential occupancy for recreation purposes and all 
36.7 	or a portion of which was devoted to commercial purposes for not more than 250 days in 
36.8 	the year preceding the year of assessment desiring classification as class 4c, must submit a 
36.9 	declaration to the assessor designating the cabins or units occupied for 250 days or less in 
36.10 	the year preceding the year of assessment by January 15 of the assessment year. Those 
36.11 	cabins or units and a proportionate share of the land on which they are located must be 
36.12 	designated class 4c as otherwise provided. The remainder of the cabins or units and 
36.13 	a proportionate share of the land on which they are located will be designated as class 
36.14 	3a. The owner of property desiring designation as class 4c property must provide guest 
36.15 	registers or other records demonstrating that the units for which class 4c designation is 
36.16 	sought were not occupied for more than 250 days in the year preceding the assessment if 
36.17 	so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, 
36.18 	(4) conference center or meeting room, and (5) other nonresidential facility operated on a 
36.19 	commercial basis not directly related to temporary and seasonal residential occupancy for 
36.20 	recreation purposes does not qualify for class 4c; 
36.21 	(2) qualified property used as a golf course if: 
36.22 	(i) it is open to the public on a daily fee basis. It may charge membership fees or 
36.23 	dues, but a membership fee may not be required in order to use the property for golfing, 
36.24 	and its green fees for golfing must be comparable to green fees typically charged by 
36.25 	municipal courses; and 
36.26 	(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d). 
36.27 	A structure used as a clubhouse, restaurant, or place of refreshment in conjunction 
36.28 	with the golf course is classified as class 3a property; 
36.29 	(3) real property up to a maximum of three acres of land owned and used by a 
36.30 	nonprofit community service oriented organization and that is not used for residential 
36.31 	purposes on either a temporary or permanent basis, qualifies for class 4c provided that 
36.32 	it meets either of the following: 
36.33 	(i) the property is not used for a revenue-producing activity for more than six days 
36.34 	in the calendar year preceding the year of assessment; or 
36.35 	(ii) the organization makes annual charitable contributions and donations at least 
36.36 	equal to the property's previous year's property taxes and the property is allowed to be 
37.1 	used for public and community meetings or events for no charge, as appropriate to the 
37.2 	size of the facility. 
37.3 	For purposes of this clause, 
37.4 	(A) "charitable contributions and donations" has the same meaning as lawful 
37.5 	gambling purposes under section 349.12, subdivision 25, excluding those purposes 
37.6 	relating to the payment of taxes, assessments, fees, auditing costs, and utility payments; 
37.7 	(B) "property taxes" excludes the state general tax; 
37.8 	(C) a "nonprofit community service oriented organization" means any corporation, 
37.9 	society, association, foundation, or institution organized and operated exclusively for 
37.10 	charitable, religious, fraternal, civic, or educational purposes, and which is exempt 
37.11 	from federal income taxation pursuant to section 501(c)(3), (10), or (19) of the Internal 
37.12 	Revenue Code; and 
37.13 	(D) "revenue-producing activities" shall include but not be limited to property or that 
37.14 	portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 
37.15 	liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 
37.16 	alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 
37.17 	insurance business, or office or other space leased or rented to a lessee who conducts a 
37.18 	for-profit enterprise on the premises. 
37.19 	Any portion of the property qualifying under item (i) which is used for revenue-producing 
37.20 	activities for more than six days in the calendar year preceding the year of assessment 
37.21 	shall be assessed as class 3a. The use of the property for social events open exclusively 
37.22 	to members and their guests for periods of less than 24 hours, when an admission is 
37.23 	not charged nor any revenues are received by the organization shall not be considered a 
37.24 	revenue-producing activity. 
37.25 	The organization shall maintain records of its charitable contributions and donations 
37.26 	and of public meetings and events held on the property and make them available upon 
37.27 	request any time to the assessor to ensure eligibility. An organization meeting the 
37.28 	requirement under item (ii) must file an application by May 1 with the assessor for 
37.29 	eligibility for the current year's assessment. The commissioner shall prescribe a uniform 
37.30 	application form and instructions; 
37.31 	(4) postsecondary student housing of not more than one acre of land that is owned by 
37.32 	a nonprofit corporation organized under chapter 317A and is used exclusively by a student 
37.33 	cooperative, sorority, or fraternity for on-campus housing or housing located within two 
37.34 	miles of the border of a college campus; 
37.35 	(5) manufactured home parks as defined in section 327.14, subdivision 3; 
38.1 	(6) real property that is actively and exclusively devoted to indoor fitness, health, 
38.2 	social, recreational, and related uses, is owned and operated by a not-for-profit corporation, 
38.3 	and is located within the metropolitan area as defined in section 473.121, subdivision 2; 
38.4 	(7) a leased or privately owned noncommercial aircraft storage hangar not exempt 
38.5 	under section 272.01, subdivision 2, and the land on which it is located, provided that: 
38.6 	(i) the land is on an airport owned or operated by a city, town, county, Metropolitan 
38.7 	Airports Commission, or group thereof; and 
38.8 	(ii) the land lease, or any ordinance or signed agreement restricting the use of the 
38.9 	leased premise, prohibits commercial activity performed at the hangar. 
38.10 	If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must 
38.11 	be filed by the new owner with the assessor of the county where the property is located 
38.12 	within 60 days of the sale; 
38.13 	(8) a privately owned noncommercial aircraft storage hangar not exempt under 
38.14 	section 272.01, subdivision 2, and the land on which it is located, provided that: 
38.15 	(i) the land abuts a public airport; and 
38.16 	(ii) the owner of the aircraft storage hangar provides the assessor with a signed 
38.17 	agreement restricting the use of the premises, prohibiting commercial use or activity 
38.18 	performed at the hangar; and 
38.19 	(9) residential real estate, a portion of which is used by the owner for homestead 
38.20 	purposes, and that is also a place of lodging, if all of the following criteria are met: 
38.21 	(i) rooms are provided for rent to transient guests that generally stay for periods 
38.22 	of 14 or fewer days; 
38.23 	(ii) meals are provided to persons who rent rooms, the cost of which is incorporated 
38.24 	in the basic room rate; 
38.25 	(iii) meals are not provided to the general public except for special events on fewer 
38.26 	than seven days in the calendar year preceding the year of the assessment; and 
38.27 	(iv) the owner is the operator of the property.
38.28 	The market value subject to the 4c classification under this clause is limited to five rental 
38.29 	units. Any rental units on the property in excess of five, must be valued and assessed as 
38.30 	class 3a. The portion of the property used for purposes of a homestead by the owner must 
38.31 	be classified as class 1a property under subdivision 22; and
38.32 	(10) real property up to a maximum of three acres and operated as a restaurant 
38.33 	as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake 
38.34 	as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B) 
38.35 	is either devoted to commercial purposes for not more than 250 consecutive days, or 
38.36 	receives at least 60 percent of its annual gross receipts from business conducted during 
39.1 	four consecutive months. Gross receipts from the sale of alcoholic beverages must be 
39.2 	included in determining the property's qualification under subitem (B). The property's 
39.3 	primary business must be as a restaurant and not as a bar. Gross receipts from gift shop 
39.4 	sales located on the premises must be excluded. Owners of real property desiring 4c 
39.5 	classification under this clause must submit an annual declaration to the assessor by 
39.6 	February 1 of the current assessment year, based on the property's relevant information for 
39.7 	the preceding assessment year; and
39.8 	(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used 
39.9 	as a marina, as defined in section 86A.20, subdivision 5, which is made accessible to 
39.10 	the public and devoted to recreational use for marina services. The marina owner must 
39.11 	annually provide evidence to the assessor that it provides services, including lake or 
39.12 	river access to the public. No more than 800 feet of lakeshore may be included in this 
39.13 	classification. Buildings used in conjunction with a marina for marina services, including 
39.14 	but not limited to buildings used to provide food and beverage services, fuel, boat repairs, 
39.15 	or the sale of bait or fishing tackle are classified as class 3a property.
39.16 	Class 4c property has a class rate of 1.5 percent of market value, except that (i) each 
39.17 	parcel of seasonal residential recreational property not used for commercial purposes has 
39.18 	the same class rates as class 4bb property, (ii) manufactured home parks assessed under 
39.19 	clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal 
39.20 	residential recreational property and marina recreational land as described in clause (11), 
39.21 	has a class rate of one percent for the first $500,000 of market value, and 1.25 percent for 
39.22 	the remaining market value, (iv) the market value of property described in clause (4) has a 
39.23 	class rate of one percent, (v) the market value of property described in clauses (2), (6), and 
39.24 	(10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property 
39.25 	in clause (9) qualifying for class 4c property has a class rate of 1.25 percent. 
39.26 	(e) Class 4d property is qualifying low-income rental housing certified to the assessor 
39.27 	by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion 
39.28 	of the units in the building qualify as low-income rental housing units as certified under 
39.29 	section 273.128, subdivision 3, only the proportion of qualifying units to the total number 
39.30 	of units in the building qualify for class 4d. The remaining portion of the building shall be 
39.31 	classified by the assessor based upon its use. Class 4d also includes the same proportion of 
39.32 	land as the qualifying low-income rental housing units are to the total units in the building. 
39.33 	For all properties qualifying as class 4d, the market value determined by the assessor must 
39.34 	be based on the normal approach to value using normal unrestricted rents. 
39.35 	Class 4d property has a class rate of 0.75 percent. 

40.1 	EFFECTIVE DATE. This section is effective for assessment year 2009, taxes 
40.2 	payable in 2010, and thereafter.

40.3 	Sec. 19. Minnesota Statutes 2008, section 275.07, is amended by adding a subdivision 
40.4 	to read:
40.5 		Subd. 6.Recertification due to unallotment. If a local government's December 
40.6 	aid or credit payments under sections 477A.011 to 477A.014 and section 273.1384 are 
40.7 	reduced due to unallotment under section 16A.152, the local government may recertify 
40.8 	its levy under subdivision 1, by January 15 of the year in which the levy will be paid. 
40.9 	The local government must report the recertified amount to the county auditor within 
40.10 	two business days of January 15 or the levy will remain at the amount certified under 
40.11 	subdivision 1. Notwithstanding subdivision 4, the county auditor shall report to the 
40.12 	commissioner of revenue any recertified levies under this subdivision by January 30 
40.13 	of the year in which the levy will be paid.

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

40.15 	Sec. 20. Minnesota Statutes 2008, section 275.70, subdivision 5, is amended to read:
40.16 		Subd. 5.Special levies. "Special levies" means those portions of ad valorem taxes 
40.17 	levied by a local governmental unit for the following purposes or in the following manner:
40.18 	(1) to pay the costs of the principal and interest on bonded indebtedness or to 
40.19 	reimburse for the amount of liquor store revenues used to pay the principal and interest 
40.20 	due on municipal liquor store bonds in the year preceding the year for which the levy 
40.21 	limit is calculated;
40.22 	(2) to pay the costs of principal and interest on certificates of indebtedness issued for 
40.23 	any corporate purpose except for the following:
40.24 	(i) tax anticipation or aid anticipation certificates of indebtedness;
40.25 	(ii) certificates of indebtedness issued under sections 298.28 and 298.282;
40.26 	(iii) certificates of indebtedness used to fund current expenses or to pay the costs of 
40.27 	extraordinary expenditures that result from a public emergency; or
40.28 	(iv) certificates of indebtedness used to fund an insufficiency in tax receipts or 
40.29 	an insufficiency in other revenue sources;
40.30 	(3) to provide for the bonded indebtedness portion of payments made to another 
40.31 	political subdivision of the state of Minnesota;
40.32 	(4) to fund payments made to the Minnesota State Armory Building Commission 
40.33 	under section 193.145, subdivision 2, to retire the principal and interest on armory 
40.34 	construction bonds;
41.1 	(5) property taxes approved by voters which are levied against the referendum 
41.2 	market value as provided under section 275.61;
41.3 	(6) to fund matching requirements needed to qualify for federal or state grants or 
41.4 	programs to the extent that either (i) the matching requirement exceeds the matching 
41.5 	requirement in calendar year 2001, or (ii) it is a new matching requirement that did not 
41.6 	exist prior to 2002;
41.7 	(7) to pay the expenses reasonably and necessarily incurred in preparing for or 
41.8 	repairing the effects of natural disaster including the occurrence or threat of widespread 
41.9 	or severe damage, injury, or loss of life or property resulting from natural causes, in 
41.10 	accordance with standards formulated by the Emergency Services Division of the state 
41.11 	Department of Public Safety, as allowed by the commissioner of revenue under section 
41.12 	275.74, subdivision 2;
41.13 	(8) pay amounts required to correct an error in the levy certified to the county 
41.14 	auditor by a city or county in a levy year, but only to the extent that when added to the 
41.15 	preceding year's levy it is not in excess of an applicable statutory, special law or charter 
41.16 	limitation, or the limitation imposed on the governmental subdivision by sections 275.70 
41.17 	to 275.74 in the preceding levy year;
41.18 	(9) to pay an abatement under section 469.1815;
41.19 	(10) to pay any costs attributable to increases in the employer contribution rates 
41.20 	under chapter 353, or locally administered pension plans, that are effective after June 
41.21 	30, 2001;
41.22 	(11) to pay the operating or maintenance costs of a county jail as authorized in 
41.23 	section 641.01 or 641.262, or of a correctional facility as defined in section 241.021, 
41.24 	subdivision 1, paragraph (f), to the extent that the county can demonstrate to the 
41.25 	commissioner of revenue that the amount has been included in the county budget as 
41.26 	a direct result of a rule, minimum requirement, minimum standard, or directive of the 
41.27 	Department of Corrections, or to pay the operating or maintenance costs of a regional jail 
41.28 	as authorized in section 641.262. For purposes of this clause, a district court order is 
41.29 	not a rule, minimum requirement, minimum standard, or directive of the Department of 
41.30 	Corrections. If the county utilizes this special levy, except to pay operating or maintenance 
41.31 	costs of a new regional jail facility under sections 641.262 to 641.264 which will not 
41.32 	replace an existing jail facility, any amount levied by the county in the previous levy year 
41.33 	for the purposes specified under this clause and included in the county's previous year's 
41.34 	levy limitation computed under section 275.71, shall be deducted from the levy limit 
41.35 	base under section 275.71, subdivision 2, when determining the county's current year 
42.1 	levy limitation. The county shall provide the necessary information to the commissioner 
42.2 	of revenue for making this determination;
42.3 	(12) to pay for operation of a lake improvement district, as authorized under section 
42.4 	103B.555. If the county utilizes this special levy, any amount levied by the county in the 
42.5 	previous levy year for the purposes specified under this clause and included in the county's 
42.6 	previous year's levy limitation computed under section 275.71 shall be deducted from 
42.7 	the levy limit base under section 275.71, subdivision 2, when determining the county's 
42.8 	current year levy limitation. The county shall provide the necessary information to the 
42.9 	commissioner of revenue for making this determination;
42.10 	(13) to repay a state or federal loan used to fund the direct or indirect required 
42.11 	spending by the local government due to a state or federal transportation project or other 
42.12 	state or federal capital project. This authority may only be used if the project is not a 
42.13 	local government initiative;
42.14 	(14) to pay for court administration costs as required under section 273.1398, 
42.15 	subdivision 4b, less the (i) county's share of transferred fines and fees collected by the 
42.16 	district courts in the county for calendar year 2001 and (ii) the aid amount certified to be 
42.17 	paid to the county in 2004 under section 273.1398, subdivision 4c; however, for taxes 
42.18 	levied to pay for these costs in the year in which the court financing is transferred to the 
42.19 	state, the amount under this clause is limited to the amount of aid the county is certified to 
42.20 	receive under section 273.1398, subdivision 4a;
42.21 	(15) to fund a police or firefighters relief association as required under section 69.77 
42.22 	to the extent that the required amount exceeds the amount levied for this purpose in 2001;
42.23 	(16) for purposes of a storm sewer improvement district under section 444.20; 
42.24 	(17) to pay for the maintenance and support of a city or county society for the 
42.25 	prevention of cruelty to animals under section 343.11, but not to exceed in any year 
42.26 	$4,800 or the sum of $1 per capita based on the county's or city's population as of the most 
42.27 	recent federal census, whichever is greater. If the city or county uses this special levy, any 
42.28 	amount levied by the city or county in the previous levy year for the purposes specified 
42.29 	in this clause and included in the city's or county's previous year's levy limit computed 
42.30 	under section 275.71, must be deducted from the levy limit base under section 275.71, 
42.31 	subdivision 2, in determining the city's or county's current year levy limit; 
42.32 	(18) for counties, to pay for the increase in their share of health and human service 
42.33 	costs caused by reductions in federal health and human services grants effective after 
42.34 	September 30, 2007;
42.35 	(19) for a city, for the costs reasonably and necessarily incurred for securing, 
42.36 	maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by 
43.1 	the commissioner of revenue under section 275.74, subdivision 2. A city must have either 
43.2 	(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in 
43.3 	the city or in a zip code area of the city that is at least 50 percent higher than the average 
43.4 	foreclosure rate in the metropolitan area, as defined in section 473.121, subdivision 2, 
43.5 	to use this special levy. For purposes of this paragraph, "foreclosure rate" means the 
43.6 	number of foreclosures, as indicated by sheriff sales records, divided by the number of 
43.7 	households in the city in 2007;
43.8 	(20) for a city, for the unreimbursed costs of redeployed traffic control agents and 
43.9 	lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified 
43.10 	to the Federal Highway Administration;
43.11 	(21) to pay costs attributable to wages and benefits for sheriff, police, and fire 
43.12 	personnel. If a local governmental unit did not use this special levy in the previous year its 
43.13 	levy limit base under section 275.71 shall be reduced by the amount equal to the amount it 
43.14 	levied for the purposes specified in this clause in the previous year; and
43.15 	(22) an amount equal to any reductions in the certified aids or credits payable 
43.16 	under sections 477A.011 to 477A.014, and section 273.1384, due to unallotment under 
43.17 	section 16A.152. The amount of the levy allowed under this clause is equal to the amount 
43.18 	unallotted in the calendar year in which the tax is levied unless the unallotment amount is 
43.19 	not known by September 1 of the levy year, and the local government has not adjusted its 
43.20 	levy under section 275.065, subdivision 6, or 275.07, subdivision 6, in which case the 
43.21 	unallotment amount may be levied in the following year.;
43.22 	(23) to pay for the difference between one-half of the costs of confining sex offenders 
43.23 	undergoing the civil commitment process and any state payments for this purpose pursuant 
43.24 	to section 253B.185, subdivision 5;
43.25 	(24) for a county to pay the costs of the first year of maintaining and operating a new 
43.26 	facility or new expansion, either of which contains courts, corrections, dispatch, criminal 
43.27 	investigation labs, or other public safety facilities and for which all or a portion of the 
43.28 	funding for the site acquisition, building design, site preparation, construction, and related 
43.29 	equipment was issued or authorized prior to the imposition of levy limits in 2008. The 
43.30 	levy limit base shall then be increased by an amount equal to the new facility's first full 
43.31 	year's operating costs as described in this clause; and
43.32 	(25) for the estimated amount of reduction to credits under section 273.1384 for 
43.33 	credits payable in the year in which the levy is payable.

43.34 	EFFECTIVE DATE. This section is effective for levies certified in calendar year 
43.35 	2009 and thereafter, payable in 2010 and thereafter.

44.1 	Sec. 21. [275.77] TEMPORARY SUSPENSION OF NEW OR INCREASED 
44.2 	MAINTENANCE OF EFFORT AND MATCHING FUND REQUIREMENTS.
44.3 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
44.4 	the meanings given them:
44.5 	(1) "maintenance of effort" means a requirement imposed on a political subdivision 
44.6 	by state law to continue providing funding of a service or program at a given or increasing 
44.7 	level based on its funding of the service and program in prior years; 
44.8 	(2) "matching fund requirement" means a requirement imposed on a political 
44.9 	subdivision by state law to fund a portion of a program or service but does not mean 
44.10 	required nonstate contributions to state capital funded projects or other nonstate 
44.11 	contributions required in order to receive a grant or loan the political subdivision has 
44.12 	requested or applied for; and
44.13 	(3) "political subdivision" means a county, town, or statutory or home rule charter 
44.14 	city.
44.15 		Subd. 2.Temporary suspension. (a) Notwithstanding any other provision of law 
44.16 	to the contrary, any new maintenance of effort or matching fund requirement enacted 
44.17 	after January 1, 2009, that will require spending by a political subdivision shall not be 
44.18 	effective until July 1, 2011.
44.19 	(b) Notwithstanding any other provision of law to the contrary, any changes to 
44.20 	existing maintenance of effort or matching fund requirement enacted after January 1, 
44.21 	2009, that will require new spending by a political subdivision shall not be effective 
44.22 	until July 1, 2011.
44.23 	(c) The suspension of changes to existing maintenance of effort and matching fund 
44.24 	requirements under paragraph (b) does not apply if the spending is required by federal law 
44.25 	and there would be a cost to the state budget without the change.

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

44.27 	Sec. 22. Minnesota Statutes 2008, section 276.04, subdivision 2, is amended to read:
44.28 		Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the 
44.29 	printing of the tax statements. The commissioner of revenue shall prescribe the form of 
44.30 	the property tax statement and its contents. The tax statement must not state or imply 
44.31 	that property tax credits are paid by the state of Minnesota. The statement must contain 
44.32 	a tabulated statement of the dollar amount due to each taxing authority and the amount 
44.33 	of the state tax from the parcel of real property for which a particular tax statement is 
44.34 	prepared. The dollar amounts attributable to the county, the state tax, the voter approved 
44.35 	school tax, the other local school tax, the township or municipality, and the total of 
45.1 	the metropolitan special taxing districts as defined in section 275.065, subdivision 3, 
45.2 	paragraph (i), must be separately stated. The amounts due all other special taxing districts, 
45.3 	if any, may be aggregated except that any levies made by the regional rail authorities in the 
45.4 	county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
45.5 	398A shall be listed on a separate line directly under the appropriate county's levy. If the 
45.6 	county levy under this paragraph includes an amount for a lake improvement district as 
45.7 	defined under sections 103B.501 to 103B.581, the amount attributable for that purpose 
45.8 	must be separately stated from the remaining county levy amount. In the case of Ramsey 
45.9 	County, if the county levy under this paragraph includes an amount for public library 
45.10 	service under section 134.07, the amount attributable for that purpose may be separated 
45.11 	from the remaining county levy amount. The amount of the tax on homesteads qualifying 
45.12 	under the senior citizens' property tax deferral program under chapter 290B is the total 
45.13 	amount of property tax before subtraction of the deferred property tax amount. The 
45.14 	amount of the tax on contamination value imposed under sections 270.91 to 270.98, if any, 
45.15 	must also be separately stated. The dollar amounts, including the dollar amount of any 
45.16 	special assessments, may be rounded to the nearest even whole dollar. For purposes of this 
45.17 	section whole odd-numbered dollars may be adjusted to the next higher even-numbered 
45.18 	dollar. The amount of market value excluded under section 273.11, subdivision 16, if any, 
45.19 	must also be listed on the tax statement. 
45.20 	(b) The property tax statements for manufactured homes and sectional structures 
45.21 	taxed as personal property shall contain the same information that is required on the 
45.22 	tax statements for real property. 
45.23 	(c) Real and personal property tax statements must contain the following information 
45.24 	in the order given in this paragraph. The information must contain the current year tax 
45.25 	information in the right column with the corresponding information for the previous year 
45.26 	in a column on the left: 
45.27 	(1) the property's estimated market value under section 273.11, subdivision 1; 
45.28 	(2) the property's taxable market value after reductions under section 273.11, 
45.29 	subdivisions 1a and 16; 
45.30 	(3) the property's gross tax, before credits; 
45.31 	(4) for homestead residential and agricultural properties, the credits under section 
45.32 	273.1384; 
45.33 	(5) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 
45.34 	273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of 
45.35 	credit received under section 273.135 must be separately stated and identified as "taconite 
45.36 	tax relief"; and 
46.1 	(6) the net tax payable in the manner required in paragraph (a). 
46.2 	(d) If the county uses envelopes for mailing property tax statements and if the county 
46.3 	agrees, a taxing district may include a notice with the property tax statement notifying 
46.4 	taxpayers when the taxing district will begin its budget deliberations for the current 
46.5 	year, and encouraging taxpayers to attend the hearings. If the county allows notices to 
46.6 	be included in the envelope containing the property tax statement, and if more than 
46.7 	one taxing district relative to a given property decides to include a notice with the tax 
46.8 	statement, the county treasurer or auditor must coordinate the process and may combine 
46.9 	the information on a single announcement. 

46.10 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
46.11 	thereafter.

46.12 	Sec. 23. Minnesota Statutes 2008, section 279.01, subdivision 1, is amended to read:
46.13 		Subdivision 1. Due dates; penalties. Except as provided in subdivision 3 or 4, on 
46.14 	May 16 or 21 days after the postmark date on the envelope containing the property tax 
46.15 	statement, whichever is later, a penalty accrues and thereafter is charged upon all unpaid 
46.16 	taxes on real estate on the current lists in the hands of the county treasurer. The penalty is 
46.17 	at a rate of two percent on homestead property until May 31 and four percent on June 1. 
46.18 	The penalty on nonhomestead property is at a rate of four percent until May 31 and eight 
46.19 	percent on June 1. This penalty does not accrue until June 1 of each year, or 21 days after 
46.20 	the postmark date on the envelope containing the property tax statements, whichever is 
46.21 	later, on commercial use real property used for seasonal residential recreational purposes 
46.22 	and classified as class 1c or 4c, and on other commercial use real property classified as 
46.23 	class 3a, provided that over 60 percent of the gross income earned by the enterprise on the 
46.24 	class 3a property is earned during the months of May, June, July, and August. In order for 
46.25 	the first half of the tax due on class 3a property to be paid after May 15 and before June 1, 
46.26 	or 21 days after the postmark date on the envelope containing the property tax statement, 
46.27 	whichever is later, without penalty, the owner of the property must attach an affidavit to the 
46.28 	payment attesting to compliance with the income provision of this subdivision. Thereafter, 
46.29 	for both homestead and nonhomestead property, on the first day of each month beginning 
46.30 	July 1, up to and including October 1 following, an additional penalty of one percent for 
46.31 	each month accrues and is charged on all such unpaid taxes provided that if the due date 
46.32 	was extended beyond May 15 as the result of any delay in mailing property tax statements 
46.33 	no additional penalty shall accrue if the tax is paid by the extended due date. If the tax is 
46.34 	not paid by the extended due date, then all penalties that would have accrued if the due 
46.35 	date had been May 15 shall be charged. When the taxes against any tract or lot exceed 
47.1 	$50 $250, one-half thereof may be paid prior to May 16 or 21 days after the postmark 
47.2 	date on the envelope containing the property tax statement, whichever is later; and, if so 
47.3 	paid, no penalty attaches; the remaining one-half may be paid at any time prior to October 
47.4 	16 following, without penalty; but, if not so paid, then a penalty of two percent accrues 
47.5 	thereon for homestead property and a penalty of four percent on nonhomestead property. 
47.6 	Thereafter, for homestead property, on the first day of November an additional penalty of 
47.7 	four percent accrues and on the first day of December following, an additional penalty of 
47.8 	two percent accrues and is charged on all such unpaid taxes. Thereafter, for nonhomestead 
47.9 	property, on the first day of November and December following, an additional penalty of 
47.10 	four percent for each month accrues and is charged on all such unpaid taxes. If one-half of 
47.11 	such taxes are not paid prior to May 16 or 21 days after the postmark date on the envelope 
47.12 	containing the property tax statement, whichever is later, the same may be paid at any time 
47.13 	prior to October 16, with accrued penalties to the date of payment added, and thereupon 
47.14 	no penalty attaches to the remaining one-half until October 16 following. 
47.15 	This section applies to payment of personal property taxes assessed against 
47.16 	improvements to leased property, except as provided by section 277.01, subdivision 3. 
47.17 	A county may provide by resolution that in the case of a property owner that has 
47.18 	multiple tracts or parcels with aggregate taxes exceeding $50 $250, payments may be 
47.19 	made in installments as provided in this subdivision. 
47.20 	The county treasurer may accept payments of more or less than the exact amount of 
47.21 	a tax installment due. Payments must be applied first to the oldest installment that is due 
47.22 	but which has not been fully paid. If the accepted payment is less than the amount due, 
47.23 	payments must be applied first to the penalty accrued for the year or the installment being 
47.24 	paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum 
47.25 	payment required as a condition for filing an appeal under section 278.03 or any other law, 
47.26 	nor does it affect the order of payment of delinquent taxes under section 280.39. 

47.27 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
47.28 	thereafter.

47.29 	Sec. 24. Minnesota Statutes 2008, section 279.10, is amended to read:
47.30 	279.10 PUBLICATION CORRECTED.
47.31 	Immediately after preparing forms for printing such notice and list, and at least five 
47.32 	days before the first day for the publication thereof, every such publisher shall furnish 
47.33 	proof of the proposed publication to the county auditor for correction. When such the copy 
47.34 	has been corrected, the auditor shall return the same it to the printer, who shall publish it 
48.1 	as corrected. On the first day on which such the notice and list are published, the publisher 
48.2 	shall mail a copy of the newspaper containing the same the notice and list to the auditor. If 
48.3 	during the publication of the notice and list, or within ten days after the last publication 
48.4 	thereof, the auditor shall discover discovers that such the publication is invalid contains an 
48.5 	error, the auditor shall forthwith direct the publisher to republish the same as corrected
48.6 	publish the correct information for an additional period of two weeks. The auditor does 
48.7 	not have to direct the publisher to republish the entire list. The publisher, if not neglectful, 
48.8 	shall be is entitled to the same compensation as allowed by law for the original publication
48.9 	of the corrected information, but shall receive no further compensation therefor if such the 
48.10 	 republication is necessary by reason of the neglect of the publisher.

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

48.12 	Sec. 25. Minnesota Statutes 2008, section 282.08, is amended to read:
48.13 	282.08 APPORTIONMENT OF PROCEEDS TO TAXING DISTRICTS.
48.14 	The net proceeds from the sale or rental of any parcel of forfeited land, or from the 
48.15 	sale of products from the forfeited land, must be apportioned by the county auditor to the 
48.16 	taxing districts interested in the land, as follows:
48.17 	(1) the portion required to pay any amounts included in the appraised value 
48.18 	under section 282.01, subdivision 3, as representing increased value due to any public 
48.19 	improvement made after forfeiture of the parcel to the state, but not exceeding the 
48.20 	amount certified by the appropriate governmental authority must be apportioned to the 
48.21 	governmental subdivision entitled to it;
48.22 	(2) the portion required to pay any amount included in the appraised value under 
48.23 	section 282.019, subdivision 5, representing increased value due to response actions 
48.24 	taken after forfeiture of the parcel to the state, but not exceeding the amount of expenses 
48.25 	certified by the Pollution Control Agency or the commissioner of agriculture, must be 
48.26 	apportioned to the agency or the commissioner of agriculture and deposited in the fund 
48.27 	from which the expenses were paid;
48.28 	(3) the portion of the remainder required to discharge any special assessment 
48.29 	chargeable against the parcel for drainage or other purpose whether due or deferred at the 
48.30 	time of forfeiture, must be apportioned to the governmental subdivision entitled to it; and
48.31 	(4) any balance must be apportioned as follows:
48.32 	(i)(A) Except as provided in subitem (B), the county board may annually by 
48.33 	resolution set aside no more than 30 percent of the receipts remaining to be used for forest 
48.34 	development on tax-forfeited land and dedicated memorial forests, to be expended under 
49.1 	the supervision of the county board. It must be expended only on projects improving the 
49.2 	health and management of the forest resource.
49.3 	(B) For a county that received an aid payment in calendar year 2009 under section 
49.4 	477A.0124, subdivision 5, paragraph (b), the county board is authorized to use some of the 
49.5 	money set aside under subitem (A) to replace all or a portion of the amount of aid or credit 
49.6 	reimbursement that the county was to receive under sections 273.1384 and 477A.0124, 
49.7 	but did not receive due to aid cuts or unallotment from the state. Within six months of 
49.8 	the actual aid or credit reimbursement loss, the county board may adopt a resolution 
49.9 	transferring money from this fund to the county's general fund, not to exceed the amount of 
49.10 	aid or credit reimbursement loss to the county. This subitem expires December 31, 2010.
49.11 	(ii) The county board may annually by resolution set aside no more than 20 percent 
49.12 	of the receipts remaining to be used for the acquisition and maintenance of county parks 
49.13 	or recreational areas as defined in sections 398.31 to 398.36, to be expended under the 
49.14 	supervision of the county board.
49.15 	(iii) Any balance remaining must be apportioned as follows: county, 40 percent; 
49.16 	town or city, 20 percent; and school district, 40 percent, provided, however, that in 
49.17 	unorganized territory that portion which would have accrued to the township must be 
49.18 	administered by the county board of commissioners.

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

49.20 	Sec. 26. Minnesota Statutes 2008, section 290B.03, subdivision 1, is amended to read:
49.21 		Subdivision 1.Program qualifications. The qualifications for the senior citizens' 
49.22 	property tax deferral program are as follows:
49.23 	(1) the property must be owned and occupied as a homestead by a person 65 years 
49.24 	of age or older. In the case of a married couple, both at least one of the spouses must 
49.25 	be at least 65 years old at the time the first property tax deferral is granted, regardless 
49.26 	of whether the property is titled in the name of one spouse or both spouses, or titled in 
49.27 	another way that permits the property to have homestead status, and the other spouse 
49.28 	must be at least 62 years of age;
49.29 	(2) the total household income of the qualifying homeowners, as defined in section 
49.30 	290A.03, subdivision 5, for the calendar year preceding the year of the initial application 
49.31 	may not exceed $60,000;
49.32 	(3) the homestead must have been owned and occupied as the homestead of at 
49.33 	least one of the qualifying homeowners for at least 15 years prior to the year the initial 
49.34 	application is filed;
50.1 	(4) there are no state or federal tax liens or judgment liens on the homesteaded 
50.2 	property;
50.3 	(5) there are no mortgages or other liens on the property that secure future advances, 
50.4 	except for those subject to credit limits that result in compliance with clause (6); and
50.5 	(6) the total unpaid balances of debts secured by mortgages and other liens on the 
50.6 	property, including unpaid and delinquent special assessments and interest and any 
50.7 	delinquent property taxes, penalties, and interest, but not including property taxes payable 
50.8 	during the year, does not exceed 75 percent of the assessor's estimated market value for 
50.9 	the year.

50.10 	EFFECTIVE DATE. This section is effective July 1, 2009, and thereafter.

50.11 	Sec. 27. Minnesota Statutes 2008, section 428A.101, is amended to read:
50.12 	428A.101 DEADLINE FOR SPECIAL SERVICE DISTRICT UNDER 
50.13 	GENERAL LAW.
50.14 	The establishment of a new special service district after June 30, 2009 2013, requires 
50.15 	enactment of a special law authorizing the establishment.

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

50.17 	Sec. 28. Minnesota Statutes 2008, section 428A.13, is amended by adding a 
50.18 	subdivision to read:
50.19 		Subd. 1a.Prerequisites for establishing. Prior to establishment of a housing 
50.20 	improvement area, the governing body of the city must:
50.21 	(1) provide full disclosure of public expenditures, as well as the terms of any loans, 
50.22 	bonds, or other financing arrangements for housing improvement area projects; and
50.23 	(2) determine whether the association or the implementing entity will contract for 
50.24 	the housing improvements, and ensure that any contracts made by the implementing 
50.25 	entity are subject to section 471.345.

50.26 	Sec. 29. Minnesota Statutes 2008, section 428A.14, subdivision 1, is amended to read:
50.27 		Subdivision 1.Authority. Fees may be imposed by the implementing entity on the 
50.28 	housing units within the housing improvement area at a rate, term, or amount sufficient 
50.29 	to produce revenue required to provide housing improvements in the area to reimburse 
50.30 	the implementing entity for advances made to pay for the housing improvements or to 
50.31 	pay principal of, interest on, and premiums, if any, on bonds issued by the implementing 
50.32 	entity under section 428A.16. The fee can be imposed on the basis of the tax capacity of 
51.1 	the housing unit, or the total amount of square footage of the housing unit, or a method 
51.2 	determined by the council and specified in the resolution. If a fee is imposed on a basis 
51.3 	other than the tax capacity or square footage of the housing unit, the council must make 
51.4 	a finding that the alternative basis for the fee is more fair and reasonable. Before the 
51.5 	imposition of the fees, a hearing must be held and notice must be published in the official 
51.6 	newspaper at least seven days before the hearing and shall be mailed at least seven days 
51.7 	before the hearing to any housing unit owner subject to a fee. For purposes of this section, 
51.8 	the notice must also include:  
51.9 	(1) a statement that all interested persons will be given an opportunity to be heard at 
51.10 	the hearing regarding a proposed housing improvement fee;
51.11 	(2) the estimated cost of improvements including administrative costs to be paid for 
51.12 	in whole or in part by the fee imposed under the ordinance;
51.13 	(3) the amount to be charged against the particular property;
51.14 	(4) the right of the property owner to prepay the entire fee;
51.15 	(5) the number of years the fee will be in effect; and
51.16 	(6) a statement that the petition requirements of section 428A.12 have either been 
51.17 	met or do not apply to the proposed fee.  
51.18 	Within six months of the public hearing, the implementing entity may adopt a 
51.19 	resolution imposing a fee within the area not exceeding the amount expressed in the 
51.20 	notice issued under this section.
51.21 	Prior to adoption of the resolution approving the fee, the condominium associations 
51.22 	located in the housing improvement area shall submit to the implementing entity a 
51.23 	financial plan prepared by an independent third party, acceptable to the implementing 
51.24 	entity and associations, that provides for the associations to finance maintenance and 
51.25 	operation of the common elements in the condominium and a long-range plan to conduct 
51.26 	and finance capital improvements.

51.27 	Sec. 30. Minnesota Statutes 2008, section 428A.21, is amended to read:
51.28 	428A.21 DEADLINE FOR HOUSING IMPROVEMENT DISTRICTS UNDER 
51.29 	GENERAL LAW.
51.30 	The establishment of a new housing improvement area after June 30, 2009 2013, 
51.31 	requires enactment of a special law authorizing the establishment of the area.

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

51.33 	Sec. 31. Minnesota Statutes 2008, section 429.011, subdivision 2a, is amended to read:
52.1 		Subd. 2a.Municipality; certain counties. "Municipality" also includes the 
52.2 	following: 
52.3 	(1) a county in the case of construction, reconstruction, or improvement of a county 
52.4 	state-aid highway or;
52.5 	(2) a county in the case of construction, reconstruction, or improvement of a  county 
52.6 	highway as defined in section 160.02 including curbs and gutters and storm sewers; 
52.7 	(3) a county exercising its powers and duties under section 444.075, subdivision 
52.8 	1; and
52.9 	(4) a county for expenses not paid for under section 403.113, subdivision 3, 
52.10 	paragraph (b), clause (3); and
52.11 	(5) a county in the case of the abatement of nuisances.

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

52.13 	Sec. 32. Minnesota Statutes 2008, section 469.040, subdivision 2, is amended to read:
52.14 		Subd. 2.Leased property, exception. Notwithstanding the provisions of 
52.15 	subdivision 1, any property other than property to be operated as a parking facility that 
52.16 	the authority leases to private individuals or corporations for development in connection 
52.17 	with a redevelopment project shall have the same tax status as if the leased property were 
52.18 	owned by the private individuals or corporations. This subdivision does not apply to 
52.19 	leases by the authority to individuals or families for residential use.

52.20 	EFFECTIVE DATE. This section applies to housing projects and housing 
52.21 	development projects constructed or acquired by an authority after July 1, 1987, for 
52.22 	property taxes payable in 2010 and thereafter.

52.23 	Sec. 33. Minnesota Statutes 2008, section 469.040, subdivision 4, is amended to read:
52.24 		Subd. 4.Facilities funded from multiple sources. In the metropolitan area, as 
52.25 	defined in section 473.121, subdivision 2, the tax treatment provided in subdivision 3 
52.26 	applies to that portion of any multifamily rental housing facility represented by the ratio of 
52.27 	(1) the number of units in the facility that are subject to the requirements of constructed 
52.28 	with funds provided under Section 5 of the United States Housing Act of 1937, and are 
52.29 	receiving operating subsidy under Section 9 or rental assistance under Section 8 of the 
52.30 	United States Housing Act of 1937 as the result of the implementation of a federal court 
52.31 	order or consent decree to (2) the total number of units within the facility.
52.32 	The housing and redevelopment authority for the city in which the facility is located, 
52.33 	any public entity exercising the powers of such housing and redevelopment authority, or 
53.1 	the county housing and redevelopment authority for the county in which the facility is 
53.2 	located, shall annually certify to the assessor responsible for assessing the facility, at the 
53.3 	time and in the manner required by the assessor, the number of units in the facility that 
53.4 	are subject to the requirements of constructed with funds provided under Section 5 of the 
53.5 	United States Housing Act of 1937, and are receiving operating subsidy under Section 9 
53.6 	or rental assistance under Section 8 of the United States Housing Act of 1937.
53.7 	Nothing in this subdivision shall prevent that portion of the facility not subject to 
53.8 	this subdivision from meeting the requirements of section 273.128, and for that purpose 
53.9 	the total number of units in the facility must be taken into account.

53.10 	Sec. 34. Minnesota Statutes 2008, section 469.053, is amended by adding a subdivision 
53.11 	to read:
53.12 		Subd. 4a.Seaway port authority levy. A levy made under this subdivision shall 
53.13 	replace the mandatory city levy under subdivision 4. A seaway port authority is a special 
53.14 	taxing district under section 275.066 and may levy a tax in any year for the benefit of the 
53.15 	seaway port authority. The tax must not exceed 0.01813 percent of taxable market value. 
53.16 	The county auditor shall distribute the proceeds of the property tax levy to the seaway 
53.17 	port authority.

53.18 	EFFECTIVE DATE. This section is effective for property taxes levied in 2009 and 
53.19 	thereafter, payable in 2010 and thereafter.

53.20 	Sec. 35. [469.1816] ABATEMENTS FOR BUSINESSES WITH DISRUPTED 
53.21 	ACCESS.
53.22 	The governing body of a home rule charter or statutory city may abate the property 
53.23 	taxes it has imposed, in whole or in part, on the property of a business with an estimated 
53.24 	market value of $250,000 or less, if access to the property has been impeded for a period 
53.25 	of more than three consecutive months, resulting in loss of revenue to the business, due to 
53.26 	a public transportation project in the vicinity of the business. If an abatement is granted, 
53.27 	the property taxes shall be levied on the property and shall be due and payable to the 
53.28 	county at the times provided under section 279.01. The city granting the abatement will 
53.29 	pay the property owner or lessee the amount of abatement as determined by the city.

53.30 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 through 
53.31 	2014.

53.32 	Sec. 36. Minnesota Statutes 2008, section 475.58, subdivision 1, is amended to read:
54.1 		Subdivision 1. Approval by electors; exceptions. Obligations authorized by law or 
54.2 	charter may be issued by any municipality upon obtaining the approval of a majority of 
54.3 	the electors voting on the question of issuing the obligations, but an election shall not be 
54.4 	required to authorize obligations issued: 
54.5 	(1) to pay any unpaid judgment against the municipality; 
54.6 	(2) for refunding obligations; 
54.7 	(3) for an improvement or improvement program, which obligation is payable wholly 
54.8 	or partly from the proceeds of special assessments levied upon property specially benefited 
54.9 	by the improvement or by an improvement within the improvement program, or from tax 
54.10 	increments, as defined in section 469.174, subdivision 25, including obligations which are 
54.11 	the general obligations of the municipality, if the municipality is entitled to reimbursement 
54.12 	in whole or in part from the proceeds of such special assessments or tax increments and 
54.13 	not less than 20 percent of the cost of the improvement or the improvement program is to 
54.14 	be assessed against benefited property or is to be paid from the proceeds of federal grant 
54.15 	funds or a combination thereof, or is estimated to be received from tax increments; 
54.16 	(4) payable wholly from the income of revenue producing conveniences; 
54.17 	(5) under the provisions of a home rule charter which permits the issuance of 
54.18 	obligations of the municipality without election; 
54.19 	(6) under the provisions of a law which permits the issuance of obligations of a 
54.20 	municipality without an election; 
54.21 	(7) to fund pension or retirement fund or postemployment benefit liabilities of a 
54.22 	municipality or postemployment benefit liabilities of a school district pursuant to section 
54.23 	475.52, subdivision 6; 
54.24 	(8) under a capital improvement plan under section 373.40; and
54.25 	(9) under sections 469.1813 to 469.1815 (property tax abatement authority bonds), if 
54.26 	the proceeds of the bonds are not used for a purpose prohibited under section 469.176, 
54.27 	subdivision 4g, paragraph (b);
54.28 	(10) to fund postemployment benefit liabilities pursuant to section 475.52, 
54.29 	subdivision 6, of a municipality, other than a school district, if the liabilities are limited to:
54.30 	(i) satisfying the requirements of section 471.61, subdivision 2b; and
54.31 	(ii) other postemployment benefits, which the municipality no longer provides to 
54.32 	employees hired after a date before the obligations are issued; and
54.33 	(11) under section 475.755. 

54.34 	EFFECTIVE DATE. This section is effective the day following final enactment, 
54.35 	except that the changes made to clause (7) are effective for obligations sold after August 
54.36 	1, 2009.

55.1 	Sec. 37. [475.755] EMERGENCY DEBT CERTIFICATES.
55.2 	(a) If at any time during a fiscal year the receipts of a local government are 
55.3 	reasonably expected to be reduced below the amount provided in the local government's 
55.4 	budget when the final property tax levy to be collected during the fiscal year was certified 
55.5 	and the receipts are insufficient to meet the expenses incurred or to be incurred during the 
55.6 	fiscal year, the governing body of the local government may authorize and sell certificates 
55.7 	of indebtedness to mature within two years or less from the end of the fiscal year in which 
55.8 	the certificates are issued. The maximum principal amount of the certificates that it may 
55.9 	issue in a fiscal year is limited to the expected reduction in receipts plus the cost of 
55.10 	issuance. The certificates may be issued in the manner and on the terms the governing 
55.11 	body determines by resolution. 
55.12 	(b) The governing body of the local government shall levy taxes for the payment of 
55.13 	principal and interest on the certificates in accordance with section 475.61.
55.14 	(c) The certificates are not to be included in the net debt of the issuing local 
55.15 	government. 
55.16 	(d) To the extent that a local government issues certificates under this section to fund 
55.17 	an unallotment or other reduction in its state aid, the local government may not use a 
55.18 	special levy for the aid reduction under section 275.70, subdivision 5, clause (22), or a 
55.19 	similar or successor provision. This provision does not affect the status of the levy under 
55.20 	section 475.61 to pay the certificates as a levy that is not subject to levy limits.
55.21 	(e) For purposes of this section, the following terms have the meanings given:
55.22 	(1) "Local government" means a statutory or home rule charter city, a town, or 
55.23 	a county.
55.24 	(2) "Receipts" includes the following amounts scheduled to be received by the 
55.25 	local government for the fiscal year from:
55.26 	(i) taxes;
55.27 	(ii) aid payments previously certified by the state to be paid to the local government;
55.28 	(iii) state reimbursement payments for property tax credits; and
55.29 	(iv) any other source.

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

55.31 	Sec. 38. Minnesota Statutes 2008, section 477A.011, subdivision 36, is amended to 
55.32 	read:
55.33 		Subd. 36. City aid base. (a) Except as otherwise provided in this subdivision, 
55.34 	"city aid base" is zero. 
56.1 	(b) The city aid base for any city with a population less than 500 is increased by 
56.2 	$40,000 for aids payable in calendar year 1995 and thereafter, and the maximum amount 
56.3 	of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also 
56.4 	increased by $40,000 for aids payable in calendar year 1995 only, provided that: 
56.5 	(i) the average total tax capacity rate for taxes payable in 1995 exceeds 200 percent; 
56.6 	(ii) the city portion of the tax capacity rate exceeds 100 percent; and 
56.7 	(iii) its city aid base is less than $60 per capita. 
56.8 	(c) The city aid base for a city is increased by $20,000 in 1998 and thereafter and 
56.9 	the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
56.10 	paragraph (c), is also increased by $20,000 in calendar year 1998 only, provided that: 
56.11 	(i) the city has a population in 1994 of 2,500 or more; 
56.12 	(ii) the city is located in a county, outside of the metropolitan area, which contains a 
56.13 	city of the first class; 
56.14 	(iii) the city's net tax capacity used in calculating its 1996 aid under section 
56.15 	477A.013 is less than $400 per capita; and 
56.16 	(iv) at least four percent of the total net tax capacity, for taxes payable in 1996, of 
56.17 	property located in the city is classified as railroad property. 
56.18 	(d) The city aid base for a city is increased by $200,000 in 1999 and thereafter and 
56.19 	the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
56.20 	paragraph (c), is also increased by $200,000 in calendar year 1999 only, provided that: 
56.21 	(i) the city was incorporated as a statutory city after December 1, 1993; 
56.22 	(ii) its city aid base does not exceed $5,600; and 
56.23 	(iii) the city had a population in 1996 of 5,000 or more. 
56.24 	(e) The city aid base for a city is increased by $150,000 for aids payable in 2000 and 
56.25 	thereafter, and the maximum amount of total aid it may receive under section 477A.013, 
56.26 	subdivision 9, paragraph (c), is also increased by $150,000 in calendar year 2000 only, 
56.27 	provided that: 
56.28 	(1) the city has a population that is greater than 1,000 and less than 2,500; 
56.29 	(2) its commercial and industrial percentage for aids payable in 1999 is greater 
56.30 	than 45 percent; and 
56.31 	(3) the total market value of all commercial and industrial property in the city 
56.32 	for assessment year 1999 is at least 15 percent less than the total market value of all 
56.33 	commercial and industrial property in the city for assessment year 1998. 
56.34 	(f) The city aid base for a city is increased by $200,000 in 2000 and thereafter, and 
56.35 	the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
56.36 	paragraph (c), is also increased by $200,000 in calendar year 2000 only, provided that: 
57.1 	(1) the city had a population in 1997 of 2,500 or more; 
57.2 	(2) the net tax capacity of the city used in calculating its 1999 aid under section 
57.3 	477A.013 is less than $650 per capita; 
57.4 	(3) the pre-1940 housing percentage of the city used in calculating 1999 aid under 
57.5 	section 477A.013 is greater than 12 percent; 
57.6 	(4) the 1999 local government aid of the city under section 477A.013 is less than 
57.7 	20 percent of the amount that the formula aid of the city would have been if the need 
57.8 	increase percentage was 100 percent; and 
57.9 	(5) the city aid base of the city used in calculating aid under section 477A.013 
57.10 	is less than $7 per capita. 
57.11 	(g) The city aid base for a city is increased by $102,000 in 2000 and thereafter, and 
57.12 	the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
57.13 	paragraph (c), is also increased by $102,000 in calendar year 2000 only, provided that: 
57.14 	(1) the city has a population in 1997 of 2,000 or more; 
57.15 	(2) the net tax capacity of the city used in calculating its 1999 aid under section 
57.16 	477A.013 is less than $455 per capita; 
57.17 	(3) the net levy of the city used in calculating 1999 aid under section 477A.013 is 
57.18 	greater than $195 per capita; and 
57.19 	(4) the 1999 local government aid of the city under section 477A.013 is less than 
57.20 	38 percent of the amount that the formula aid of the city would have been if the need 
57.21 	increase percentage was 100 percent. 
57.22 	(h) The city aid base for a city is increased by $32,000 in 2001 and thereafter, and 
57.23 	the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
57.24 	paragraph (c), is also increased by $32,000 in calendar year 2001 only, provided that: 
57.25 	(1) the city has a population in 1998 that is greater than 200 but less than 500; 
57.26 	(2) the city's revenue need used in calculating aids payable in 2000 was greater 
57.27 	than $200 per capita; 
57.28 	(3) the city net tax capacity for the city used in calculating aids available in 2000 
57.29 	was equal to or less than $200 per capita; 
57.30 	(4) the city aid base of the city used in calculating aid under section 477A.013 
57.31 	is less than $65 per capita; and 
57.32 	(5) the city's formula aid for aids payable in 2000 was greater than zero. 
57.33 	(i) The city aid base for a city is increased by $7,200 in 2001 and thereafter, and 
57.34 	the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
57.35 	paragraph (c), is also increased by $7,200 in calendar year 2001 only, provided that: 
57.36 	(1) the city had a population in 1998 that is greater than 200 but less than 500; 
58.1 	(2) the city's commercial industrial percentage used in calculating aids payable in 
58.2 	2000 was less than ten percent; 
58.3 	(3) more than 25 percent of the city's population was 60 years old or older according 
58.4 	to the 1990 census; 
58.5 	(4) the city aid base of the city used in calculating aid under section 477A.013 
58.6 	is less than $15 per capita; and 
58.7 	(5) the city's formula aid for aids payable in 2000 was greater than zero. 
58.8 	(j) The city aid base for a city is increased by $45,000 in 2001 and thereafter and 
58.9 	by an additional $50,000 in calendar years 2002 to 2011, and the maximum amount of 
58.10 	total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also 
58.11 	increased by $45,000 in calendar year 2001 only, and by $50,000 in calendar year 2002 
58.12 	only, provided that: 
58.13 	(1) the net tax capacity of the city used in calculating its 2000 aid under section 
58.14 	477A.013 is less than $810 per capita; 
58.15 	(2) the population of the city declined more than two percent between 1988 and 1998; 
58.16 	(3) the net levy of the city used in calculating 2000 aid under section 477A.013 is 
58.17 	greater than $240 per capita; and 
58.18 	(4) the city received less than $36 per capita in aid under section 477A.013, 
58.19 	subdivision 9, for aids payable in 2000. 
58.20 	(k) The city aid base for a city with a population of 10,000 or more which is located 
58.21 	outside of the seven-county metropolitan area is increased in 2002 and thereafter, and the 
58.22 	maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
58.23 	paragraph (b) or (c), is also increased in calendar year 2002 only, by an amount equal to 
58.24 	the lesser of: 
58.25 	(1)(i) the total population of the city, as determined by the United States Bureau of 
58.26 	the Census, in the 2000 census, (ii) minus 5,000, (iii) times 60; or 
58.27 	(2) $2,500,000. 
58.28 	(l) The city aid base is increased by $50,000 in 2002 and thereafter, and the 
58.29 	maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
58.30 	paragraph (c), is also increased by $50,000 in calendar year 2002 only, provided that: 
58.31 	(1) the city is located in the seven-county metropolitan area; 
58.32 	(2) its population in 2000 is between 10,000 and 20,000; and 
58.33 	(3) its commercial industrial percentage, as calculated for city aid payable in 2001, 
58.34 	was greater than 25 percent. 
58.35 	(m) The city aid base for a city is increased by $150,000 in calendar years 2002 to 
58.36 	2011 and by an additional $75,000 in calendar years 2009 to 2014 and the maximum 
59.1 	amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is 
59.2 	also increased by $150,000 in calendar year 2002 only and by $75,000 in calendar year 
59.3 	2009 only, provided that: 
59.4 	(1) the city had a population of at least 3,000 but no more than 4,000 in 1999; 
59.5 	(2) its home county is located within the seven-county metropolitan area; 
59.6 	(3) its pre-1940 housing percentage is less than 15 percent; and 
59.7 	(4) its city net tax capacity per capita for taxes payable in 2000 is less than $900 
59.8 	per capita. 
59.9 	(n) The city aid base for a city is increased by $200,000 beginning in calendar 
59.10 	year 2003 and the maximum amount of total aid it may receive under section 477A.013, 
59.11 	subdivision 9, paragraph (c), is also increased by $200,000 in calendar year 2003 only, 
59.12 	provided that the city qualified for an increase in homestead and agricultural credit aid 
59.13 	under Laws 1995, chapter 264, article 8, section 18. 
59.14 	(o) The city aid base for a city is increased by $200,000 in 2004 only and the 
59.15 	maximum amount of total aid it may receive under section 477A.013, subdivision 9, is 
59.16 	also increased by $200,000 in calendar year 2004 only, if the city is the site of a nuclear 
59.17 	dry cask storage facility. 
59.18 	(p) The city aid base for a city is increased by $10,000 in 2004 and thereafter and the 
59.19 	maximum total aid it may receive under section 477A.013, subdivision 9, is also increased 
59.20 	by $10,000 in calendar year 2004 only, if the city was included in a federal major disaster 
59.21 	designation issued on April 1, 1998, and its pre-1940 housing stock was decreased by 
59.22 	more than 40 percent between 1990 and 2000. 
59.23 	(q) The city aid base for a city is increased by $30,000 in 2009 and thereafter and the 
59.24 	maximum total aid it may receive under section 477A.013, subdivision 9, is also increased 
59.25 	by $25,000 in calendar year 2006 only if the city had a population in 2003 of at least 1,000 
59.26 	and has a state park for which the city provides rescue services and which comprised at 
59.27 	least 14 percent of the total geographic area included within the city boundaries in 2000. 
59.28 	(r) The city aid base for a city is increased by $80,000 in 2009 and thereafter and 
59.29 	the minimum and maximum amount of total aid it may receive under section 477A.013, 
59.30 	subdivision 9, is also increased by $80,000 in calendar year 2009 only, if: 
59.31 	(1) as of May 1, 2006, at least 25 percent of the tax capacity of the city is proposed 
59.32 	to be placed in trust status as tax-exempt Indian land; 
59.33 	(2) the placement of the land is being challenged administratively or in court; and 
59.34 	(3) due to the challenge, the land proposed to be placed in trust is still on the tax 
59.35 	rolls as of May 1, 2006. 
60.1 	(s) The city aid base for a city is increased by $100,000 in 2007 and thereafter and 
60.2 	the minimum and maximum total amount of aid it may receive under this section is also 
60.3 	increased in calendar year 2007 only, provided that: 
60.4 	(1) the city has a 2004 estimated population greater than 200 but less than 2,000; 
60.5 	(2) its city net tax capacity for aids payable in 2006 was less than $300 per capita; 
60.6 	(3) the ratio of its pay 2005 tax levy compared to its city net tax capacity for aids 
60.7 	payable in 2006 was greater than 110 percent; and 
60.8 	(4) it is located in a county where at least 15,000 acres of land are classified as 
60.9 	tax-exempt Indian reservations according to the 2004 abstract of tax-exempt property. 
60.10 	(t) The city aid base for a city is increased by $30,000 in 2009 only, and the 
60.11 	maximum total aid it may receive under section 477A.013, subdivision 9, is also increased 
60.12 	by $30,000 in calendar year 2009, only if the city had a population in 2005 of less than 
60.13 	3,000 and the city's boundaries as of 2007 were formed by the consolidation of two cities 
60.14 	and one township in 2002. 
60.15 	(u) The city aid base for a city is increased by $100,000 in 2009 and thereafter, and 
60.16 	the maximum total aid it may receive under section 477A.013, subdivision 9, is also 
60.17 	increased by $100,000 in calendar year 2009 only, if the city had a city net tax capacity for 
60.18 	aids payable in 2007 of less than $150 per capita and the city experienced flooding on 
60.19 	March 14, 2007, that resulted in evacuation of at least 40 homes.
60.20 	(v) The city aid base for a city is increased by $100,000 in 2009 to 2013, and the 
60.21 	maximum total aid it may receive under section 477A.013, subdivision 9, is also increased 
60.22 	by $100,000 in calendar year 2009 only, if the city:
60.23 	(1) is located outside of the Minneapolis-St. Paul standard metropolitan statistical 
60.24 	area;
60.25 	(2) has a 2005 population greater than 7,000 but less than 8,000; and
60.26 	(3) has a 2005 net tax capacity per capita of less than $500.
60.27 	(w) The city aid base is increased by $25,000 in calendar years 2009 to 2013 and the 
60.28 	maximum amount of total aid it may receive under section 477A.013, subdivision 9, is 
60.29 	increased by $25,000 in calendar year 2009 only, provided that:
60.30 	(1) the city is located in the seven-county metropolitan area;
60.31 	(2) its population in 2006 is less than 200; and 
60.32 	(3) the percentage of its housing stock built before 1940, according to the 2000 
60.33 	United States Census, is greater than 40 percent.
60.34 	(x) The city aid base is increased by $90,000 in calendar year 2009 only and the 
60.35 	minimum and maximum total amount of aid it may receive under section 477A.013, 
60.36 	subdivision 9, is also increased by $90,000 in calendar year 2009 only, provided that the 
61.1 	city is located in the seven-county metropolitan area, has a 2006 population between 5,000 
61.2 	and 7,000 and has a 1997 population of over 7,000.
61.3 	(y) In calendar year 2010 only, the city aid base for a city is increased by $225,000 if 
61.4 	it was eligible for a $450,000 payment in calendar year 2008 under Minnesota Statutes 
61.5 	2006, section 477A.011, subdivision 36, paragraph (e), and the second half of the payment 
61.6 	under that paragraph in December 2008 was canceled due to the governor's unallotment. 
61.7 	The payment under this paragraph is not subject to any aid reductions under section 
61.8 	477A.0133 or any future unallotment of the city aid under section 16A.152.
61.9 	(z) The city aid base and the maximum total aid the city may receive under section 
61.10 	477A.013, subdivision 9, is increased by $25,000 in calendar year 2010 only if:
61.11 	(1) the city is a first class city in the seven-county metropolitan area with a 
61.12 	population below 300,000; and
61.13 	(2) the city has made an equivalent grant to its local growers' association to 
61.14 	reimburse up to $1,000 each for membership fees and retail leases for members of the 
61.15 	association who farm in and around Dakota County and who incurred crop damage as a 
61.16 	result of the hail storm in that area on July 10, 2008.
61.17 	The payment under this paragraph is not subject to any aid reductions under section 
61.18 	477A.0133 or any future unallotment of the city aid under section 16A.152.

61.19 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
61.20 	2010 and thereafter.

61.21 	Sec. 39. Laws 1976, chapter 162, section 3, as amended by Laws 1991, chapter 167, 
61.22 	section 3, is amended to read:
61.23 	Sec. 3. COOPERATION.
 61.24 	The Red River watershed management board may cooperate with water management 
61.25 	and flood control authorities in Minnesota, North Dakota, South Dakota, and the province 
61.26 	of Manitoba and may enter into contracts, compacts and agreements which may be 
61.27 	necessary to insure integration of its projects, to control the effects of flooding or to assure 
61.28 	the beneficial use of water in the Red River basin. The Red River Watershed Management 
61.29 	Board may conduct its meetings at a public facility within the Red River basin, or within 
61.30 	the jurisdiction of an authority with which the Red River Watershed Management Board is 
61.31 	authorized to cooperate.

61.32 	Sec. 40. Laws 2001, First Special Session chapter 5, article 3, section 8, the effective 
61.33 	date, as amended by Laws 2005, chapter 151, article 3, section 19, and Laws 2006, chapter 
61.34 	259, article 4, section 20, is amended to read:
62.1 	EFFECTIVE DATE. This section is effective for taxes levied in 2002, payable in 
62.2 	2003, through taxes levied in 2011, payable in 2012 and thereafter. 

62.3 	Sec. 41. Laws 2008, chapter 366, article 6, section 9, the effective date, is amended to 
62.4 	read:

62.5 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
62.6 	thereafter on land platted after May 18, 2008.

62.7 	Sec. 42. Laws 2008, chapter 366, article 6, section 10, the effective date, is amended to 
62.8 	read:

62.9 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
62.10 	thereafter on land platted after May 18, 2008.

62.11 	Sec. 43. Laws 2009, chapter 12, article 2, section 5, subdivision 2, is amended to read:
62.12 		Subd. 2.Requirements. Class 2a or 2b property that had been assessed under 
62.13 	Minnesota Statutes 2006, section 273.111, or that is part of an agricultural homestead 
62.14 	under Minnesota Statutes, section 273.13, subdivision 23, paragraph (a), is entitled to 
62.15 	valuation and tax deferment under this section if:
62.16 	(1) the land consists of at least ten acres;
62.17 	(2) a conservation management plan for the land must be prepared by an approved 
62.18 	plan writer and implemented during the period in which the land is subject to valuation 
62.19 	and deferment under this section;
62.20 	(3) the land must be enrolled for a minimum of ten years; and
62.21 	(4) there are no delinquent property taxes on the land.
62.22 	Real estate may not be enrolled for valuation and deferment under this section 
62.23 	and Minnesota Statutes, sections 273.111, 273.112, or 273.117, or Minnesota Statutes, 
62.24 	chapter 290C, concurrently.
62.25 	No more than 50 percent of the total acreage of an agricultural homestead may be 
62.26 	class 2b property enrolled in this program.

62.27 	Sec. 44. COUNTY AID PAYMENT.
 62.28 	The county program aid payable to Beltrami County under Minnesota Statutes, 
62.29 	section 477A.0124, must be increased in calendar year 2009 only by $500,000, to be 
62.30 	distributed by the county to the governing body of the Red Lake Band of Chippewa 
62.31 	Indians. The money must be used by the band for the cost of implementing the Fostering 
63.1 	Connections to Success and Increasing Adoptions Act of 2008, Public Law 110-351. 
63.2 	$500,000 is appropriated from the general fund to the commissioner of revenue for the 
63.3 	purpose of this section, and this amount is not subject to unallotment under Minnesota 
63.4 	Statutes, section 16A.152.

63.5 	EFFECTIVE DATE. This section is effective for aids payable in 2009.

63.6 	Sec. 45. MINNEAPOLIS CONVENTION CENTER; LEASE; PROPERTY TAX 
63.7 	EXEMPTION.
 63.8 	Notwithstanding Minnesota Statutes, section 272.01, subdivision 2, or 273.19, real 
63.9 	or personal property subject to a lease or use agreement between the city of Minneapolis 
63.10 	and a private entity for purposes of providing food and beverage services within the 
63.11 	Minneapolis Convention Center is exempt from property taxation.

63.12 	EFFECTIVE DATE. This section is effective for assessment year 2009 and 
63.13 	thereafter, for taxes payable in 2010 and thereafter.

63.14 	Sec. 46. CLOQUET AREA FIRE AND AMBULANCE SPECIAL TAXING 
63.15 	DISTRICT.
 63.16 		Subdivision 1.Agreement. The city of Cloquet and Perch Lake Township, by 
63.17 	resolution of each of their governing bodies, may establish the Cloquet Area Fire and 
63.18 	Ambulance Taxing District for the purpose of providing fire and ambulance services 
63.19 	throughout the district. In this section, "municipality" means home rule charter and 
63.20 	statutory cities, towns, and Indian tribes. The district may exercise all the powers relating 
63.21 	to fire and ambulance services of the municipalities that receive fire and ambulance 
63.22 	services from the district. Any other municipality that is contiguous to a municipality that 
63.23 	is a member of the district may join the district with the agreement of the municipalities 
63.24 	that comprise the district at the time of its application to join.
63.25 		Subd. 2.Board. The Cloquet Area Fire and Ambulance Taxing District Board is 
63.26 	governed by a board made up initially of one or more elected officials of the governing 
63.27 	body of each participating municipality in the proportions set out in the establishing 
63.28 	resolution, subject to change as provided in the district's charter, if any, or in the district's 
63.29 	bylaws. Each municipality's representatives serve at the pleasure of that municipality's 
63.30 	governing body.
63.31 		Subd. 3.Tax. The district board may impose a property tax on taxable property 
63.32 	in the district. This tax shall be imposed at a rate that does not exceed 0.2835 percent of 
63.33 	taxable market value for taxes payable in 2010. The board shall annually determine the 
64.1 	separate amounts of the levy that are attributable to the cost of providing fire services and 
64.2 	the cost of providing ambulance services. Costs for the provision of ambulance services 
64.3 	shall be levied against taxable property within the area of the district that receive the 
64.4 	services. Costs for the provision of fire services shall be levied against taxable property 
64.5 	within the area of the district that receive the services.
64.6 	When an additional municipality becomes a member of the district, the additional 
64.7 	cost of providing ambulance and fire services to that municipality will be determined by 
64.8 	the board and added to the maximum levy amount.
64.9 	Each county auditor of a county that contains a municipality subject to the tax under 
64.10 	this section must collect the tax and pay it to the Fire and Ambulance Special Taxing 
64.11 	District. The district may also impose other fees or charges as allowed by law for the 
64.12 	provision of fire and ambulance services.
64.13 		Subd. 4.Public indebtedness. The district may incur debt in the manner provided 
64.14 	for a municipality by Minnesota Statutes, chapter 475, when necessary to accomplish 
64.15 	its duties.
64.16 		Subd. 5.Withdrawal. Notice of intent to withdraw from participation in the district 
64.17 	may be given only in the month of January, with a minimum of twelve months notice of 
64.18 	intent to withdraw. Withdrawal becomes effective for taxes levied in the year when the 
64.19 	notice is given. The district and its members may develop and agree upon continuing 
64.20 	obligations after withdrawal of a municipality.

64.21 	EFFECTIVE DATE. This section is effective in Cloquet and Perch Lake Township 
64.22 	the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the 
64.23 	governing body of each.

64.24 	Sec. 47. PROPERTY TAX TREATMENT OF HORSE BREEDING AND HORSE 
64.25 	BOARDING PROPERTIES.
 64.26 		Subdivision 1.Study. In order to provide for the uniform assessment and 
64.27 	classification for property tax purposes of real property used for horse breeding and 
64.28 	horse boarding activities, the commissioner of revenue, in consultation with the 
64.29 	commissioner of agriculture, shall study the treatment of such properties under current 
64.30 	law. The commissioner must report by February 1, 2010, to the chairs and ranking 
64.31 	minority members of the taxes committees of the senate and the house of representatives, 
64.32 	summarizing the current treatment and making recommendations for needed or useful 
64.33 	law changes.
64.34 		Subd. 2.Appeals to the commissioner. A person who has a right, title, interest, or 
64.35 	lien in or upon property that had been classified as agricultural for property tax purposes 
65.1 	for taxes payable in 2009 based on the use of the land for breeding or boarding horses, 
65.2 	may appeal the classification of the land for taxes payable in 2010 to the commissioner 
65.3 	of revenue if the use of the land has not substantially changed. The appeal must be in 
65.4 	written form, and must be received by the commissioner before September 1, 2009. The 
65.5 	commissioner must resolve the appeal by issuance of a written order accompanied by a 
65.6 	statement of the commissioner's reasons for the order, on or before December 31, 2009. 
65.7 	When the commissioner issues an order, a copy must be sent to both the appellant and the 
65.8 	county assessor. The order is appealable in tax court only by the owner or taxpayer, and 
65.9 	only within 60 days of issuance.

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

65.11 	Sec. 48. PROPOSAL FOR REFORM OF LOCAL GOVERNMENT FUNDING 
65.12 	OF HUMAN SERVICES.
 65.13 	(a) The commissioner of human services, in consultation with county representatives 
65.14 	designated by the Association of Minnesota Counties, the Minnesota Inter-County 
65.15 	Association, and the Minnesota Association of County Social Service Administrators; 
65.16 	representatives from organizations that represent people who receive these services; and 
65.17 	the commissioner of the department of revenue shall develop a proposal for establishing 
65.18 	and transitioning from current maintenance of effort and matching fund requirements to a 
65.19 	new consolidated local county property tax contribution across all mandated health and 
65.20 	human services and report it to the governor and the chairs and ranking minority members 
65.21 	of the house or representative and senate committees with jurisdiction over the policy 
65.22 	areas of property taxes and health and human services funding by February 1, 2010. 
65.23 	The report shall be made electronically, with paper copies available upon request. The 
65.24 	following criteria shall be considered in designing the new system:
65.25 	(1) providing a funding mechanism that is relatively simple to predict and administer 
65.26 	at both the state and local levels;
65.27 	(2) providing application across programs;
65.28 	(3) maintaining current services, adjusted for fluctuations in demand for services;
65.29 	(4) clarifying property tax impacts of funding decisions;
65.30 	(5) ensuring that all eligible citizens have equal access to mandated services; and 
65.31 	(6) enabling the service system to maximally focus county staff time on service 
65.32 	delivery. 
65.33 	(b) Efforts to control state and county costs and service utilization rates shall focus 
65.34 	on eligibility, level of difficulty, and other programmatic priorities.
65.35 	(c)  The new system must be designed and implemented in a way that: 
66.1 	(1) ensures that counties have the resources available to continue to serve clients 
66.2 	at the current level;
66.3 	(2) ensure the ability to earn federal match funds;
66.4 	(3) provide for as much stability as possible in overall property tax demands after 
66.5 	full implementation;
66.6 	(4) provide that increased county contributions shall be in a form that clearly 
66.7 	indicates the impact on local property taxes at both the state and county level; and
66.8 	(5) provide for mechanisms that mitigate property tax increases in a county in any 
66.9 	given year.
66.10 	(d) Any group formed as a result of this section expires February 15, 2010.

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

66.12 	Sec. 49. TAX ABATEMENT; NEWLY CONSTRUCTED RESIDENTIAL 
66.13 	STRUCTURES IN FLOOD-DAMAGED CITIES.
 66.14 		Subdivision 1.Eligibility. A residential structure qualifies for a tax abatement 
66.15 	under this section if:
66.16 	(1) the structure is located in a city that is eligible to designate a development zone 
66.17 	under Minnesota Statutes, section 469.1731;
66.18 	(2) the structure is located in a county designated as an emergency area under 
66.19 	presidential declaration FEMA-3304-EM;
66.20 	(3) the structure is located on property classified as class 1a, 1b, 2a, 4a, 4b, 4bb, or 
66.21 	4d under Minnesota Statutes, section 273.13;
66.22 	(4) no part of the structure was in existence prior to January 1, 2009, unless (i) the 
66.23 	structure is located on property classified as 1a, 1b, 2a, 4b, or 4bb; (ii) a building permit 
66.24 	was issued and construction commenced in 2008; and (iii) as of March 26, 2009, the 
66.25 	property was owned by the original builder, was not subject to any form of purchase 
66.26 	contract or agreement, and had never been occupied; and
66.27 	(5) construction of the structure is commenced prior to December 31, 2010. For the 
66.28 	purposes of this clause, construction is deemed to have been commenced if a proper 
66.29 	building permit has been issued and the mandatory footing or foundation inspection has 
66.30 	been completed.
66.31 		Subd. 2.Application. Application for the abatement authorized under this section 
66.32 	must be filed by January 2 of the year following the year in which construction began, 
66.33 	except that those qualifying structures for which construction commenced in 2008 must 
66.34 	file an application no later than January 2, 2010, for assessment years 2010 and 2011. The 
67.1 	application must be filed with the assessor of the county or city in which the property is 
67.2 	located on a form prescribed by the commissioner of revenue.
67.3 		Subd. 3.Tax abated. (a) For a property qualifying under subdivision 1 and 
67.4 	classified as either 1a, 1b, 2a, 4b, or 4bb, the tax attributable to (1) $200,000 of market 
67.5 	value, or (2) the entire market value of the structure, whichever is less, shall be abated. 
67.6 	For a property qualifying under subdivision 1 and classified as class 4a or 4d, the tax 
67.7 	attributable to (1) $20,000 of market value per residential unit, or (2) the entire market 
67.8 	value of the structure, whichever is less, shall be abated.
67.9 	(b) The abatement under paragraph (a) shall be in effect for two taxes payable years, 
67.10 	corresponding to the two assessment years after construction has begun. The abatement 
67.11 	shall not apply to any special assessments that have been levied against the property.
67.12 		Subd. 4.Reimbursement. By May 1 of each taxes payable year in which an 
67.13 	abatement has been authorized under this section, the auditor shall report the amount of 
67.14 	taxes abated for each jurisdiction within the county to the commissioner of revenue, on a 
67.15 	form prescribed by the commissioner. On or before September 1 of each taxes payable 
67.16 	year in which an abatement has been authorized under this section, the commissioner of 
67.17 	revenue shall reimburse each local jurisdiction for the amount of taxes abated for the 
67.18 	year under this section.
67.19 		Subd. 5. Appropriation. The amount necessary to make the reimbursements 
67.20 	required under this section is annually appropriated to the commissioner of revenue from 
67.21 	the general fund.

67.22 	EFFECTIVE DATE. This section is effective for assessment years 2010 to 2012, 
67.23 	for taxes payable in 2011 to 2013.

67.24 	Sec. 50. REPORT BY ADMINISTRATIVE AUDITOR.
 67.25 	The administrative auditor selected pursuant to Minnesota Statutes, section 
67.26 	473F.03, with the cooperation of the county auditors in the area defined by Minnesota 
67.27 	Statutes, section 473F.02, subdivision 2, shall study the feasibility of basing fiscal 
67.28 	disparities calculations on current year tax rates rather than previous year tax rates, 
67.29 	and report the results of the study to the chairs and ranking minority members of the 
67.30 	house of representatives and senate tax committees by February 1, 2011. The study shall 
67.31 	specifically address any complications that arise from the inclusion of the referendum 
67.32 	market value levy in the fiscal disparities calculations. The report should include any 
67.33 	recommendations for amendments to Minnesota Statutes, chapter 473F, that would be 
67.34 	necessary to implement the change.

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

68.2 	Sec. 51. STUDY OF RIPARIAN BUFFER AREAS.
 68.3 	The drainage working group, facilitated by the Board of Water and Soil Resources, 
68.4 	must study the condition of riparian buffer areas across the state, and report on the extent 
68.5 	to which the buffer areas are being maintained in a natural state, and the extent to which 
68.6 	the buffer areas are being used in a way that risks environmental damage to public waters. 
68.7 	The working group must make a report to the chairs and ranking minority members of the 
68.8 	house of representatives and senate tax committees by March 1, 2010, on the condition of 
68.9 	buffer areas, along with recommendations, if deemed necessary, for policy options such 
68.10 	as tax incentives and any other types of incentives that might be necessary to promote 
68.11 	the preservation of buffer areas.

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

68.13 	Sec. 52. STUDY OF POLLUTION CONTROL EXEMPTION.
 68.14 	The commissioner of revenue, in consultation with the commissioner of the 
68.15 	Pollution Control Agency, must study the process used to determine the eligibility of 
68.16 	personal property located at an electric generating facility for the property tax exemption 
68.17 	provided under Minnesota Statutes, section 272.02, subdivision 10. The study must 
68.18 	include a review of the process used, and must compile information on the location, value, 
68.19 	and tax impact of the exemptions provided to date, as well as an assessment of the efficacy 
68.20 	of the equipment in reducing pollution. The results of the study must be presented to the 
68.21 	chairs and ranking minority members of the committees on taxes of the senate and the 
68.22 	house of representatives by January 15, 2010.

68.23 	Sec. 53. PURPOSE; COMMISSIONER OF REVENUE GUIDANCE.
 68.24 	The purpose of section 4 is not to contract or expand the definition of "institutions 
68.25 	of purely public charity" but to provide clear standards that can be applied uniformly to 
68.26 	determine eligibility for exemption from property taxation. To carry out this purpose and 
68.27 	to promote uniformity in application of the provisions of section 4, the commissioner of 
68.28 	revenue shall prepare a bulletin providing guidance to assessors as to the commissioner's 
68.29 	interpretation of section 4. The bulletin may include a discussion of court decisions that 
68.30 	provide background to and context for the provisions in section 4, as the commissioner 
68.31 	deems appropriate. This guidance must include examples of facts or circumstances that 
68.32 	satisfy the requirement of "a reasonable justification for failing to meet the factors in clause 
68.33 	(2), (3), or (5)" under section 4, paragraph (a). Assessors shall give due consideration to 
69.1 	the bulletin in assessing property requesting an exemption as an institution of purely public 
69.2 	charity. The commissioner shall distribute the bulletin to all assessors by July 1, 2010. 

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

69.4 	Sec. 54.  REPEALER.
 69.5 	Laws 1993, chapter 375, article 5, section 42, as amended by Laws 2002, chapter 
69.6 	377, article 10, section 30, is repealed.

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

69.8 	ARTICLE 3
69.9 	TRUTH IN TAXATION

69.10 	Section 1. Minnesota Statutes 2008, section 123B.10, subdivision 1, is amended to read:
69.11 		Subdivision 1.Budgets; form of notification. (a) Every board must publish revenue 
69.12 	and expenditure budgets for the current year and the actual revenues, expenditures, fund 
69.13 	balances for the prior year and projected fund balances for the current year in a form 
69.14 	prescribed by the commissioner within one week of the acceptance of the final audit by 
69.15 	the board, or November 30, whichever is earlier. The forms prescribed must be designed 
69.16 	so that year to year comparisons of revenue, expenditures and fund balances can be made. 
69.17 	(b) A school board annually must notify the public of its revenue, expenditures, fund 
69.18 	balances, and other relevant budget information. The board must include the budget 
69.19 	information required by this section in the materials provided as a part of its truth in 
69.20 	taxation hearing, post the materials in a conspicuous place on the district's official Web 
69.21 	site, including a link to the district's school report card on the Department of Education's 
69.22 	Web site, and publish the information in a qualified newspaper of general circulation 
69.23 	in the district.

69.24 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
69.25 	thereafter.

69.26 	Sec. 2. Minnesota Statutes 2008, section 275.065, subdivision 1, is amended to read:
69.27 		Subdivision 1.Proposed levy. (a) Notwithstanding any law or charter to the 
69.28 	contrary, on or before September 15, each taxing authority, other than a school district, 
69.29 	shall adopt a proposed budget and shall certify to the county auditor the proposed or, in 
69.30 	the case of a town, the final property tax levy for taxes payable in the following year.
70.1 	(b) On or before September 30, each school district that has not mutually agreed 
70.2 	with its home county to extend this date shall certify to the county auditor the proposed 
70.3 	property tax levy for taxes payable in the following year. Each school district that has 
70.4 	agreed with its home county to delay the certification of its proposed property tax levy 
70.5 	must certify its proposed property tax levy for the following year no later than October 
70.6 	7. The school district shall certify the proposed levy as:
70.7 	(1) a specific dollar amount by school district fund, broken down between 
70.8 	voter-approved and non-voter-approved levies and between referendum market value 
70.9 	and tax capacity levies; or
70.10 	(2) the maximum levy limitation certified by the commissioner of education 
70.11 	according to section 126C.48, subdivision 1.
70.12 	(c) If the board of estimate and taxation or any similar board that establishes 
70.13 	maximum tax levies for taxing jurisdictions within a first class city certifies the maximum 
70.14 	property tax levies for funds under its jurisdiction by charter to the county auditor by 
70.15 	September 15, the city shall be deemed to have certified its levies for those taxing 
70.16 	jurisdictions.
70.17 	(d) For purposes of this section, "taxing authority" includes all home rule and 
70.18 	statutory cities, towns, counties, school districts, and special taxing districts as defined 
70.19 	in section 275.066. Intermediate school districts that levy a tax under chapter 124 or 
70.20 	136D, joint powers boards established under sections 123A.44 to 123A.446, and Common 
70.21 	School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing 
70.22 	districts for purposes of this section.
70.23 	(e) At the meeting at which the taxing authority, other than a town, adopts its 
70.24 	proposed tax levy under paragraph (a) or (b), the taxing authority shall announce the time 
70.25 	and place of its subsequent regularly scheduled meetings at which the budget and levy will 
70.26 	be discussed and at which the public will be allowed to speak. The time and place of those 
70.27 	meetings must be included in the proceedings or summary of proceedings published in the 
70.28 	official newspaper of the taxing authority under sections 123B.09, 375.12, or 412.191.

70.29 	Sec. 3. Minnesota Statutes 2008, section 275.065, subdivision 3, is amended to read:
70.30 		Subd. 3.Notice of proposed property taxes. (a) The county auditor shall prepare 
70.31 	and the county treasurer shall deliver after November 10 and on or before November 24 
70.32 	each year, by first class mail to each taxpayer at the address listed on the county's current 
70.33 	year's assessment roll, a notice of proposed property taxes. Upon written request by 
70.34 	the taxpayer, the treasurer may send the notice in electronic form or by electronic mail 
70.35 	instead of on paper or by ordinary mail.
71.1 	(b) The commissioner of revenue shall prescribe the form of the notice.
71.2 	(c) The notice must inform taxpayers that it contains the amount of property taxes 
71.3 	each taxing authority proposes to collect for taxes payable the following year. In the case 
71.4 	of a town, or in the case of the state general tax, the final tax amount will be its proposed 
71.5 	tax. In the case of taxing authorities required to hold a public meeting under subdivision 6, 
71.6 	the notice must clearly state that each taxing authority, including regional library districts 
71.7 	established under section 134.201, and including the metropolitan taxing districts as 
71.8 	defined in paragraph (i), but excluding all other special taxing districts and towns, will 
71.9 	hold a public meeting to receive public testimony on the proposed budget and proposed or 
71.10 	final property tax levy, or, in case of a school district, on the current budget and proposed 
71.11 	property tax levy.The notice must clearly state for each city, county, school district, 
71.12 	regional library authority established under section 134.201, and metropolitan taxing 
71.13 	districts as defined in paragraph (i), the time and place of the taxing authorities' regularly 
71.14 	scheduled meetings in which the budget and levy will be discussed and the final budget 
71.15 	and levy determined, which must occur after November 24. The taxing authorities must 
71.16 	provide the county auditor with the information to be included in the notice on or before 
71.17 	the time it certifies its proposed levy under subdivision 1. The public must be allowed to 
71.18 	speak at the meetings and the meetings shall not be held before 6:00 p.m. It must clearly 
71.19 	state the time and place of each taxing authority's meeting, provide a telephone number for 
71.20 	the taxing authority that taxpayers may call if they have questions related to the notice,
71.21 	and an address where comments will be received by mail.
71.22 	(d) The notice must state for each parcel:
71.23 	(1) the market value of the property as determined under section 273.11, and used 
71.24 	for computing property taxes payable in the following year and for taxes payable in the 
71.25 	current year as each appears in the records of the county assessor on November 1 of the 
71.26 	current year; and, in the case of residential property, whether the property is classified as 
71.27 	homestead or nonhomestead. The notice must clearly inform taxpayers of the years to 
71.28 	which the market values apply and that the values are final values;
71.29 	(2) the items listed below, shown separately by county, city or town, and state general 
71.30 	tax, net of the residential and agricultural homestead credit under section 273.1384, voter 
71.31 	approved school levy, other local school levy, and the sum of the special taxing districts, 
71.32 	and as a total of all taxing authorities:
71.33 	(i) the actual tax for taxes payable in the current year; and
71.34 	(ii) the proposed tax amount.
72.1 	If the county levy under clause (2) includes an amount for a lake improvement 
72.2 	district as defined under sections 103B.501 to 103B.581, the amount attributable for that 
72.3 	purpose must be separately stated from the remaining county levy amount.
72.4 	In the case of a town or the state general tax, the final tax shall also be its proposed 
72.5 	tax unless the town changes its levy at a special town meeting under section 365.52. If a 
72.6 	school district has certified under section 126C.17, subdivision 9, that a referendum will 
72.7 	be held in the school district at the November general election, the county auditor must 
72.8 	note next to the school district's proposed amount that a referendum is pending and that, if 
72.9 	approved by the voters, the tax amount may be higher than shown on the notice. In the 
72.10 	case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be 
72.11 	listed separately from the remaining amount of the city's levy. In the case of the city of 
72.12 	St. Paul, the levy for the St. Paul Library Agency must be listed separately from the 
72.13 	remaining amount of the city's levy. In the case of Ramsey County, any amount levied 
72.14 	under section 134.07 may be listed separately from the remaining amount of the county's 
72.15 	levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax 
72.16 	under chapter 276A or 473F applies, the proposed tax levy on the captured value or the 
72.17 	proposed tax levy on the tax capacity subject to the areawide tax must each be stated 
72.18 	separately and not included in the sum of the special taxing districts; and
72.19 	(3) the increase or decrease between the total taxes payable in the current year and 
72.20 	the total proposed taxes, expressed as a percentage.
72.21 	For purposes of this section, the amount of the tax on homesteads qualifying under 
72.22 	the senior citizens' property tax deferral program under chapter 290B is the total amount 
72.23 	of property tax before subtraction of the deferred property tax amount.
72.24 	(e) The notice must clearly state that the proposed or final taxes do not include 
72.25 	the following:
72.26 	(1) special assessments;
72.27 	(2) levies approved by the voters after the date the proposed taxes are certified, 
72.28 	including bond referenda and school district levy referenda;
72.29 	(3) a levy limit increase approved by the voters by the first Tuesday after the first 
72.30 	Monday in November of the levy year as provided under section 275.73;
72.31 	(4) amounts necessary to pay cleanup or other costs due to a natural disaster 
72.32 	occurring after the date the proposed taxes are certified;
72.33 	(5) amounts necessary to pay tort judgments against the taxing authority that become 
72.34 	final after the date the proposed taxes are certified; and
72.35 	(6) the contamination tax imposed on properties which received market value 
72.36 	reductions for contamination.
73.1 	(f) Except as provided in subdivision 7, failure of the county auditor to prepare or 
73.2 	the county treasurer to deliver the notice as required in this section does not invalidate the 
73.3 	proposed or final tax levy or the taxes payable pursuant to the tax levy.
73.4 	(g) If the notice the taxpayer receives under this section lists the property as 
73.5 	nonhomestead, and satisfactory documentation is provided to the county assessor by the 
73.6 	applicable deadline, and the property qualifies for the homestead classification in that 
73.7 	assessment year, the assessor shall reclassify the property to homestead for taxes payable 
73.8 	in the following year.
73.9 	(h) In the case of class 4 residential property used as a residence for lease or rental 
73.10 	periods of 30 days or more, the taxpayer must either:
73.11 	(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, 
73.12 	renter, or lessee; or
73.13 	(2) post a copy of the notice in a conspicuous place on the premises of the property.
73.14 	The notice must be mailed or posted by the taxpayer by November 27 or within 
73.15 	three days of receipt of the notice, whichever is later. A taxpayer may notify the county 
73.16 	treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to 
73.17 	which the notice must be mailed in order to fulfill the requirements of this paragraph.
73.18 	(i) For purposes of this subdivision, subdivisions 5a and 6, "metropolitan special 
73.19 	taxing districts" means the following taxing districts in the seven-county metropolitan area 
73.20 	that levy a property tax for any of the specified purposes listed below:
73.21 	(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 
73.22 	473.446, 473.521, 473.547, or 473.834;
73.23 	(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; 
73.24 	and 
73.25 	(3) Metropolitan Mosquito Control Commission under section 473.711.
73.26 	For purposes of this section, any levies made by the regional rail authorities in the 
73.27 	county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
73.28 	398A shall be included with the appropriate county's levy and shall be discussed at that 
73.29 	county's public hearing.
73.30 	(j) The governing body of a county, city, or school district may, with the consent 
73.31 	of the county board, include supplemental information with the statement of proposed 
73.32 	property taxes about the impact of state aid increases or decreases on property tax 
73.33 	increases or decreases and on the level of services provided in the affected jurisdiction. 
73.34 	This supplemental information may include information for the following year, the current 
73.35 	year, and for as many consecutive preceding years as deemed appropriate by the governing 
73.36 	body of the county, city, or school district. It may include only information regarding:
74.1 	(1) the impact of inflation as measured by the implicit price deflator for state and 
74.2 	local government purchases;
74.3 	(2) population growth and decline;
74.4 	(3) state or federal government action; and
74.5 	(4) other financial factors that affect the level of property taxation and local services 
74.6 	that the governing body of the county, city, or school district may deem appropriate to 
74.7 	include.
74.8 	The information may be presented using tables, written narrative, and graphic 
74.9 	representations and may contain instruction toward further sources of information or 
74.10 	opportunity for comment.

74.11 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
74.12 	thereafter.

74.13 	Sec. 4. Minnesota Statutes 2008, section 275.065, subdivision 6, is amended to read:
74.14 		Subd. 6.Public hearing; Adoption of budget and levy. (a) For purposes of this 
74.15 	section, the following terms shall have the meanings given:
74.16 	(1) "Initial hearing" means the first and primary hearing held to discuss the taxing 
74.17 	authority's proposed budget and proposed property tax levy for taxes payable in the 
74.18 	following year, or, for school districts, the current budget and the proposed property tax 
74.19 	levy for taxes payable in the following year.
74.20 	(2) "Continuation hearing" means a hearing held to complete the initial hearing, if 
74.21 	the initial hearing is not completed on its scheduled date.
74.22 	(3) "Subsequent hearing" means the hearing held to adopt the taxing authority's final 
74.23 	property tax levy, and, in the case of taxing authorities other than school districts, the final 
74.24 	budget, for taxes payable in the following year.
74.25 	(b) Between November 29 and December 20, the governing bodies of a city that has a 
74.26 	population over 500, county, metropolitan special taxing districts as defined in subdivision 
74.27 	3, paragraph (i), and regional library districts shall each hold an initial public hearing 
74.28 	to discuss and seek public comment on its final budget and property tax levy for taxes 
74.29 	payable in the following year, and the governing body of the school district shall hold an 
74.30 	initial public hearing to review its current budget and proposed property tax levy for taxes 
74.31 	payable in the following year. The metropolitan special taxing districts shall be required to 
74.32 	hold only a single joint initial public hearing, the location of which will be determined by 
74.33 	the affected metropolitan agencies. A city, county, metropolitan special taxing district as 
74.34 	defined in subdivision 3, paragraph (i), regional library district established under section 
74.35 	134.201, or school district is not required to hold a public hearing under this subdivision 
75.1 	unless its proposed property tax levy for taxes payable in the following year, as certified 
75.2 	under subdivision 1, has increased over its final property tax levy for taxes payable in the 
75.3 	current year by a percentage that is greater than the percentage increase in the implicit 
75.4 	price deflator for government consumption expenditures and gross investment for state 
75.5 	and local governments prepared by the Bureau of Economic Analysts of the United States 
75.6 	Department of Commerce for the 12-month period ending March 31 of the current year.
75.7 	(c) The initial hearing must be held after 5:00 p.m. if scheduled on a day other than 
75.8 	Saturday. No initial hearing may be held on a Sunday.
75.9 	(d) At the initial hearing under this subdivision, the percentage increase in property 
75.10 	taxes proposed by the taxing authority, if any, and the specific purposes for which property 
75.11 	tax revenues are being increased must be discussed. During the discussion, the governing 
75.12 	body shall hear comments regarding a proposed increase and explain the reasons for the 
75.13 	proposed increase. The public shall be allowed to speak and to ask questions. At the public 
75.14 	hearing, the school district must also provide and discuss information on the distribution 
75.15 	of its revenues by revenue source, and the distribution of its spending by program area.
75.16 	(e) If the initial hearing is not completed on its scheduled date, the taxing authority 
75.17 	must announce, prior to adjournment of the hearing, the date, time, and place for the 
75.18 	continuation of the hearing. The continuation hearing must be held at least five business 
75.19 	days but no more than 14 business days after the initial hearing. A continuation hearing 
75.20 	may not be held later than December 20 except as provided in paragraphs (f) and (g). 
75.21 	A continuation hearing must be held after 5:00 p.m. if scheduled on a day other than 
75.22 	Saturday. No continuation hearing may be held on a Sunday.
75.23 	(f) The governing body of a county shall hold its initial hearing on the first Thursday 
75.24 	in December each year, and may hold additional initial hearings on other dates before 
75.25 	December 20 if necessary for the convenience of county residents. If the county needs a 
75.26 	continuation of its hearing, the continuation hearing shall be held on the third Tuesday 
75.27 	in December. If the third Tuesday in December falls on December 21, the county's 
75.28 	continuation hearing shall be held on Monday, December 20.
75.29 	(g) The metropolitan special taxing districts shall hold a joint initial public hearing 
75.30 	on the first Wednesday of December. A continuation hearing, if necessary, shall be held on 
75.31 	the second Wednesday of December even if that second Wednesday is after December 10.
75.32 	(h) The county auditor shall provide for the coordination of initial and continuation 
75.33 	hearing dates for all school districts and cities within the county to prevent conflicts under 
75.34 	clauses (i) and (j).
75.35 	(i) By August 10, each school board and the board of the regional library district 
75.36 	shall certify to the county auditors of the counties in which the school district or regional 
76.1 	library district is located the dates on which it elects to hold its initial hearing and any 
76.2 	continuation hearing. If a school board or regional library district does not certify these 
76.3 	dates by August 10, the auditor will assign the initial and continuation hearing dates. The 
76.4 	dates elected or assigned must not conflict with the initial and continuation hearing dates 
76.5 	of the county or the metropolitan special taxing districts.
76.6 	(j) By August 20, the county auditor shall notify the clerks of the cities within the 
76.7 	county of the dates on which school districts and regional library districts have elected to 
76.8 	hold their initial and continuation hearings. At the time a city certifies its proposed levy 
76.9 	under subdivision 1 it shall certify the dates on which it elects to hold its initial hearing and 
76.10 	any continuation hearing. Until September 15, the first and second Mondays of December 
76.11 	are reserved for the use of the cities. If a city does not certify its hearing dates by 
76.12 	September 15, the auditor shall assign the initial and continuation hearing dates. The dates 
76.13 	elected or assigned for the initial hearing must not conflict with the initial hearing dates 
76.14 	of the county, metropolitan special taxing districts, regional library districts, or school 
76.15 	districts within which the city is located. To the extent possible, the dates of the city's 
76.16 	continuation hearing should not conflict with the continuation hearing dates of the county, 
76.17 	metropolitan special taxing districts, regional library districts, or school districts within 
76.18 	which the city is located. This paragraph does not apply to cities of 500 population or less.
76.19 	(k) The county initial hearing date and the city, metropolitan special taxing district, 
76.20 	regional library district, and school district initial hearing dates must be designated on 
76.21 	the notices required under subdivision 3. The continuation hearing dates need not be 
76.22 	stated on the notices.
76.23 	(l) At a subsequent hearing, each county, school district, city over 500 population, 
76.24 	and metropolitan special taxing district may amend its proposed property tax levy 
76.25 	and must adopt a final property tax levy. Each county, city over 500 population, and 
76.26 	metropolitan special taxing district may also amend its proposed budget and must adopt a 
76.27 	final budget at the subsequent hearing. The final property tax levy must be adopted prior 
76.28 	to adopting the final budget. A school district is not required to adopt its final budget at the 
76.29 	subsequent hearing. The subsequent hearing of a taxing authority must be held on a date 
76.30 	subsequent to the date of the taxing authority's initial public hearing. If a continuation 
76.31 	hearing is held, the subsequent hearing must be held either immediately following the 
76.32 	continuation hearing or on a date subsequent to the continuation hearing. The subsequent 
76.33 	hearing may be held at a regularly scheduled board or council meeting or at a special 
76.34 	meeting scheduled for the purposes of the subsequent hearing. The subsequent hearing 
76.35 	of a taxing authority does not have to be coordinated by the county auditor to prevent a 
76.36 	conflict with an initial hearing, a continuation hearing, or a subsequent hearing of any 
77.1 	other taxing authority. All subsequent hearings must be held prior to five working days 
77.2 	after December 20 of the levy year. The date, time, and place of the subsequent hearing 
77.3 	must be announced at the initial public hearing or at the continuation hearing.
77.4 	(m) (a) The property tax levy certified under section 275.07 by a city of any 
77.5 	population, county, metropolitan special taxing district, regional library district, or school 
77.6 	district must not exceed the proposed levy determined under subdivision 1, except by an 
77.7 	amount up to the sum of the following amounts:
77.8 	(1) the amount of a school district levy whose voters approved a referendum to 
77.9 	increase taxes under section 123B.63, subdivision 3, or 126C.17, subdivision 9, after 
77.10 	the proposed levy was certified;
77.11 	(2) the amount of a city or county levy approved by the voters after the proposed 
77.12 	levy was certified;
77.13 	(3) the amount of a levy to pay principal and interest on bonds approved by the 
77.14 	voters under section 475.58 after the proposed levy was certified;
77.15 	(4) the amount of a levy to pay costs due to a natural disaster occurring after the 
77.16 	proposed levy was certified, if that amount is approved by the commissioner of revenue 
77.17 	under subdivision 6a;
77.18 	(5) the amount of a levy to pay tort judgments against a taxing authority that become 
77.19 	final after the proposed levy was certified, if the amount is approved by the commissioner 
77.20 	of revenue under subdivision 6a;
77.21 	(6) the amount of an increase in levy limits certified to the taxing authority by the 
77.22 	commissioner of education or the commissioner of revenue after the proposed levy was 
77.23 	certified; and
77.24 	(7) the amount required under section 126C.55.;
77.25 	(8) the levy to pay emergency debt certificates under section 475.755 authorized and 
77.26 	issued after the proposed levy was certified; and
77.27 	(9) the amount of unallotment under section 16A.152 that was recertified under 
77.28 	section 275.07, subdivision 6.
77.29 	(n) (b) This subdivision does not apply to towns and special taxing districts other 
77.30 	than regional library districts and metropolitan special taxing districts.
77.31 	(o) (c) Notwithstanding the requirements of this section, the employer is required to 
77.32 	meet and negotiate over employee compensation as provided for in chapter 179A.

77.33 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
77.34 	thereafter.

77.35 	Sec. 5. Minnesota Statutes 2008, section 375.194, subdivision 5, is amended to read:
78.1 		Subd. 5.Determination of county tax rate. The eligible county's proposed and 
78.2 	final tax rates shall be determined by dividing the certified levy by the total taxable net tax 
78.3 	capacity, without regard to any abatements granted under this section. The county board 
78.4 	shall make available the estimated amount of the abatement at the public hearing under 
78.5 	section 275.065, subdivision 6.

78.6 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
78.7 	thereafter.

78.8 	Sec. 6. Minnesota Statutes 2008, section 383A.75, subdivision 3, is amended to read:
78.9 		Subd. 3.Duties. The committee is authorized to and shall meet from time to time 
78.10 	to make appropriate recommendations for the efficient and effective use of property tax 
78.11 	dollars raised by the jurisdictions for programs, buildings, and operations. In addition, 
78.12 	the committee shall:
78.13 	(1) identify trends and factors likely to be driving budget outcomes over the next 
78.14 	five years with recommendations for how the jurisdictions should manage those trends 
78.15 	and factors to increase efficiency and effectiveness;
78.16 	(2) agree, by October 1 of each year, on the appropriate level of overall property tax 
78.17 	levy for the three jurisdictions and publicly report such to the governing bodies of each 
78.18 	jurisdiction for ratification or modification by resolution; and
78.19 	(3) plan for the joint truth-in-taxation hearings under section 275.065, subdivision 
78.20 	8; and  
78.21 	(4) identify, by December 31 of each year, areas of the budget to be targeted in the 
78.22 	coming year for joint review to improve services or achieve efficiencies.
78.23 	In carrying out its duties, the committee shall consult with public employees of 
78.24 	each jurisdiction and with other stakeholders of the city, county, and school district, as 
78.25 	appropriate.

78.26 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
78.27 	thereafter.

78.28 	Sec. 7. Minnesota Statutes 2008, section 446A.086, subdivision 8, is amended to read:
78.29 		Subd. 8.Tax levy for repayment. (a) With the approval of the authority, a 
78.30 	governmental unit may levy in the year the state makes a payment under this section an 
78.31 	amount up to the amount necessary to provide funds for the repayment of the amount paid 
78.32 	by the state plus interest through the date of estimated repayment by the governmental 
78.33 	unit. The proceeds of this levy may be used only for this purpose unless they exceed the 
79.1 	amount actually due. Any excess must be used to repay other state payments made under 
79.2 	this section or must be deposited in the debt redemption fund of the governmental unit. 
79.3 	The amount of aids to be reduced to repay the state are decreased by the amount levied.
79.4 	(b) If the state is not repaid in full for a payment made under this section by 
79.5 	November 30 of the calendar year following the year in which the state makes the 
79.6 	payment, the authority shall require the governmental unit to certify a property tax levy in 
79.7 	an amount up to the amount necessary to provide funds for repayment of the amount paid 
79.8 	by the state plus interest through the date of estimated repayment by the governmental unit. 
79.9 	To prevent undue hardship, the authority may allow the governmental unit to certify the 
79.10 	levy over a five-year period. The proceeds of the levy may be used only for this purpose 
79.11 	unless they are in excess of the amount actually due, in which case the excess must be used 
79.12 	to repay other state payments made under this section or must be deposited in the debt 
79.13 	redemption fund of the governmental unit. If the authority orders the governmental unit to 
79.14 	levy, the amount of aids reduced to repay the state are decreased by the amount levied.
79.15 	(c) A levy under this subdivision is an increase in the levy limits of the governmental 
79.16 	unit for purposes of section 275.065, subdivision 6, and must be explained as a specific 
79.17 	increase at the meeting required under that provision.

79.18 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
79.19 	thereafter.

79.20 	Sec. 8. Minnesota Statutes 2008, section 465.719, subdivision 9, is amended to read:
79.21 		Subd. 9.Application of other laws. A corporation created by a political subdivision 
79.22 	under this section must comply with every law that applies to the political subdivision, 
79.23 	as if the corporation is a part of the political subdivision, unless the resolution ratifying 
79.24 	creation of the corporation specifically exempts the corporation from part or all of a law. 
79.25 	If the resolution exempts the corporation from part or all of a law, the resolution must 
79.26 	make a detailed and specific finding as to why the corporation cannot fulfill its purpose if 
79.27 	the corporation is subject to that law. A corporation may not be exempted from chapter 
79.28 	13D, the Minnesota Open Meeting Law, sections 138.163 to 138.25, governing records 
79.29 	management, or chapter 13, the Minnesota Government Data Practices Act. Any affected 
79.30 	or interested person may bring an action in district court to void the resolution on the 
79.31 	grounds that the findings are not sufficiently detailed and specific, or that the corporation 
79.32 	can fulfill its purpose if it is subject to the law from which the resolution exempts the 
79.33 	corporation. Laws that apply to a political subdivision that also apply to a corporation 
79.34 	created by a political subdivision under this subdivision include, but are not limited to:  
79.35 	(1) chapter 13D, the Minnesota Open Meeting Law;
80.1 	(2) chapter 13, the Minnesota Government Data Practices Act;
80.2 	(3) section 471.345, the Uniform Municipal Contracting Law;  
80.3 	(4) sections 43A.17, limiting the compensation of employees based on the governor's 
80.4 	salary; 471.991 to 471.999, providing for equitable pay; and 465.72 and 465.722, 
80.5 	governing severance pay;  
80.6 	(5) section 275.065, providing for truth-in-taxation hearings. If any tax revenues of 
80.7 	the political subdivision will be appropriated to the corporation, the corporation's annual 
80.8 	operating and capital budgets must be included in the truth-in-taxation hearing of the 
80.9 	political subdivision that created the corporation;  
80.10 	(6) if the corporation issues debt, its debt is included in the political subdivision's 
80.11 	debt limit if it would be included if issued by the political subdivision, and issuance of the 
80.12 	debt is subject to the election and other requirements of chapter 475 and section 471.69;  
80.13 	(7) (6) section 471.895, prohibiting acceptance of gifts from interested parties, and 
80.14 	sections 471.87 to 471.89, relating to interests in contracts;  
80.15 	(8) (7) chapter 466, relating to municipal tort liability;
80.16 	(9) (8) chapter 118A, requiring deposit insurance or bond or pledged collateral for 
80.17 	deposits;
80.18 	(10) (9) chapter 118A, restricting investments;
80.19 	(11) (10) section 471.346, requiring ownership of vehicles to be identified;  
80.20 	(12) (11) sections 471.38 to 471.41, requiring claims to be in writing, itemized, and 
80.21 	approved by the governing board before payment can be made; and  
80.22 	(13) (12) the corporation cannot make advances of pay, make or guarantee loans to 
80.23 	employees, or provide in-kind benefits unless authorized by law.

80.24 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
80.25 	thereafter.

80.26 	Sec. 9. Minnesota Statutes 2008, section 473.13, subdivision 1, is amended to read:
80.27 		Subdivision 1.Budget. (a) On or before December 20 of each year, the council, 
80.28 	after the public hearing required in section 275.065, shall adopt a final budget covering its 
80.29 	anticipated receipts and disbursements for the ensuing year and shall decide upon the total 
80.30 	amount necessary to be raised from ad valorem tax levies to meet its budget. The budget 
80.31 	shall state in detail the expenditures for each program to be undertaken, including the 
80.32 	expenses for salaries, consultant services, overhead, travel, printing, and other items. The 
80.33 	budget shall state in detail the capital expenditures of the council for the budget year, based 
80.34 	on a five-year capital program adopted by the council and transmitted to the legislature. 
80.35 	After adoption of the budget and no later than five working days after December 20, the 
81.1 	council shall certify to the auditor of each metropolitan county the share of the tax to be 
81.2 	levied within that county, which must be an amount bearing the same proportion to the 
81.3 	total levy agreed on by the council as the net tax capacity of the county bears to the net tax 
81.4 	capacity of the metropolitan area. The maximum amount of any levy made for the purpose 
81.5 	of this chapter may not exceed the limits set by the statute authorizing the levy.  
81.6 	(b) Each even-numbered year the council shall prepare for its transit programs a 
81.7 	financial plan for the succeeding three calendar years, in half-year segments. The financial 
81.8 	plan must contain schedules of user charges and any changes in user charges planned or 
81.9 	anticipated by the council during the period of the plan. The financial plan must contain a 
81.10 	proposed request for state financial assistance for the succeeding biennium.
81.11 	(c) In addition, the budget must show for each year:
81.12 	(1) the estimated operating revenues from all sources including funds on hand at the 
81.13 	beginning of the year, and estimated expenditures for costs of operation, administration, 
81.14 	maintenance, and debt service;
81.15 	(2) capital improvement funds estimated to be on hand at the beginning of the year 
81.16 	and estimated to be received during the year from all sources and estimated cost of capital 
81.17 	improvements to be paid out or expended during the year, all in such detail and form as 
81.18 	the council may prescribe; and
81.19 	(3) the estimated source and use of pass-through funds.

81.20 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
81.21 	thereafter.

81.22 	Sec. 10.  REPEALER.
 81.23 	 Minnesota Statutes 2008, section 275.065, subdivisions 5a, 6b, 6c, 8, 9, and 10, are 
81.24 	repealed.

81.25 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
81.26 	thereafter.

81.27 	ARTICLE 4
81.28 	SALES AND USE TAXES

81.29 	Section 1. [270C.085] NOTIFICATION REQUIREMENTS; SALES AND USE 
81.30 	TAXES.
81.31 	The commissioner of revenue shall establish a means of electronically notifying 
81.32 	persons holding a sales tax permit under section 297A.84 of any statutory change in 
81.33 	chapter 297A and any issuance or change in any administrative rule, revenue notice, or 
82.1 	sales tax fact sheet or other written information provided by the department explaining the 
82.2 	interpretation or administration of the tax imposed under that chapter. The notification 
82.3 	must indicate the basic subject of the statute, rule, fact sheet, or other material and provide 
82.4 	an electronic link to the material. Any person holding a sales tax permit that provides 
82.5 	an electronic address to the department must receive these notifications unless they 
82.6 	specifically request electronically, or in writing, to be removed from the notification list. 
82.7 	This requirement does not replace traditional means of notifying the general public or 
82.8 	persons without access to electronic communications of changes in the sales tax law. The 
82.9 	electronic notification must begin no later than December 31, 2009.

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

82.11 	Sec. 2. Minnesota Statutes 2008, section 289A.11, subdivision 1, is amended to read:
82.12 		Subdivision 1.Return required. (a) Except as provided in section 289A.18, 
82.13 	subdivision 4, for the month in which taxes imposed by chapter 297A are payable, or for 
82.14 	which a return is due, a return for the preceding reporting period must be filed with the 
82.15 	commissioner in the form and manner the commissioner prescribes. A person making 
82.16 	sales at retail at two or more places of business may file a consolidated return subject to 
82.17 	rules prescribed by the commissioner. In computing the dollar amount of items on the 
82.18 	return, the amounts are rounded off to the nearest whole dollar, disregarding amounts less 
82.19 	than 50 cents and increasing amounts of 50 cents to 99 cents to the next highest dollar.
82.20 	(b) Notwithstanding this subdivision, a person who is not required to hold a sales tax 
82.21 	permit under chapter 297A and who makes annual purchases, for use in a trade or business, 
82.22 	of less than $18,500, or a person who is not required to hold a sales tax permit and who 
82.23 	makes purchases for personal use, that are subject to the use tax imposed by section 
82.24 	297A.63, may file an annual use tax return on a form prescribed by the commissioner. If a 
82.25 	person who qualifies for an annual use tax reporting period is required to obtain a sales tax 
82.26 	permit or makes use tax purchases, for use in a trade or business, in excess of $18,500 
82.27 	during the calendar year, the reporting period must be considered ended at the end of the 
82.28 	month in which the permit is applied for or the purchase in excess of $18,500 is made and 
82.29 	a return must be filed for the preceding reporting period.
82.30 	(c) Notwithstanding paragraph (a), a person prohibited by the person's religious 
82.31 	beliefs from using electronics shall be allowed to file by mail, without any additional fees. 
82.32 	The filer must notify the commissioner of revenue of the intent to file by mail on a form 
82.33 	prescribed by the commissioner. A return filed under this paragraph must be postmarked 
82.34 	no later than the day the return is due in order to be considered filed on a timely basis.

83.1 	EFFECTIVE DATE. This section is effective for returns filed after June 30, 2009.

83.2 	Sec. 3. Minnesota Statutes 2008, section 289A.20, subdivision 4, is amended to read:
83.3 		Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and 
83.4 	payable to the commissioner monthly on or before the 20th day of the month following the 
83.5 	month in which the taxable event occurred, or following another reporting period as the 
83.6 	commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph 
83.7 	(f) or (g), except that use taxes due on an annual use tax return as provided under section 
83.8 	289A.11, subdivision 1, are payable by April 15 following the close of the calendar year. 
83.9 	(b) A vendor having a liability of $120,000 or more during a fiscal year ending June 
83.10 	30 must remit the June liability for the next year in the following manner: 
83.11 	(1) Two business days before June 30 of the year, the vendor must remit 90 percent 
83.12 	of the estimated June liability to the commissioner. 
83.13 	(2) On or before August 20 of the year, the vendor must pay any additional amount 
83.14 	of tax not remitted in June. 
83.15 	(c) A vendor having a liability of: 
83.16 	(1) $20,000 or more in the fiscal year ending June 30, 2005; or 
83.17 	(2) $10,000 or more in the fiscal year ending June 30, 2006, and fiscal years 
83.18 	thereafter, 
83.19 	must remit all liabilities on returns due for periods beginning in the subsequent calendar 
83.20 	year by electronic means on or before the 20th day of the month following the month in 
83.21 	which the taxable event occurred, or on or before the 20th day of the month following the 
83.22 	month in which the sale is reported under section 289A.18, subdivision 4, except for 90 
83.23 	percent of the estimated June liability, which is due two business days before June 30. The 
83.24 	remaining amount of the June liability is due on August 20. 
83.25 	(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's 
83.26 	religious beliefs from paying electronically shall be allowed to remit the payment by mail. 
83.27 	The filer must notify the commissioner of revenue of the intent to pay by mail before 
83.28 	doing so on a form prescribed by the commissioner. No extra fee may be charged to a 
83.29 	person making payment by mail under this paragraph. The payment must be postmarked 
83.30 	at least two business days before the due date for making the payment in order to be 
83.31 	considered paid on a timely basis.

83.32 	EFFECTIVE DATE. This section is effective for payments remitted after June 
83.33 	30, 2009.

84.1 	Sec. 4. Minnesota Statutes 2008, section 297A.62, is amended by adding a subdivision 
84.2 	to read:
84.3 		Subd. 1a.Constitutionally required sales tax increase. An additional sales tax 
84.4 	of 0.375 percent, as required under the Minnesota Constitution, article XI, section 15, is 
84.5 	imposed on the gross receipts from retail sales as defined in section 297A.61, subdivision 
84.6 	4, made in this state or to a destination in this state by a person who is required to have 
84.7 	or voluntarily obtains a permit under section 297A.83, subdivision 1. This additional 
84.8 	tax expires July 1, 2034.

84.9 	Sec. 5. Minnesota Statutes 2008, section 297A.64, subdivision 2, is amended to read:
84.10 		Subd. 2. Fee imposed. (a) A fee equal to five percent of the sales price is imposed 
84.11 	on leases or rentals of vehicles subject to the tax under subdivision 1. The lessor on the 
84.12 	invoice to the customer may designate the fee as "a fee imposed by the State of Minnesota 
84.13 	for the registration of rental cars." 
84.14 	(b) The provisions of this subdivision do not apply to the vehicles of a nonprofit 
84.15 	corporation or similar entity, consisting of individual or group members who pay the 
84.16 	organization for the use of a motor vehicle, if the organization:
84.17 	(1) owns or leases a fleet of vehicles of the type subject to the tax under subdivision 1 
84.18 	that are available to its members for use, priced on the basis of intervals of one hour or less;
84.19 	(2) parks its vehicles at unstaffed, self-service locations that are accessible at any 
84.20 	time of the day;
84.21 	(3) maintains its vehicles, insures its vehicles on behalf of its members, and 
84.22 	purchases fuel for its fleet; and
84.23 	(4) does not charge usage rates that decline on a per unit basis, whether specified 
84.24 	based on distance or time.

84.25 	EFFECTIVE DATE. This section is effective July 1, 2009, and applies to 
84.26 	registrations made or renewed on or after that date.

84.27 	Sec. 6. Minnesota Statutes 2008, section 297A.71, is amended by adding a subdivision 
84.28 	to read:
84.29 		Subd. 41.Construction materials; meat processing facility. Materials and 
84.30 	supplies used or consumed in, and equipment incorporated into, the construction or 
84.31 	improvement of a meat processing facility are exempt. This facility must be constructed to 
84.32 	replace a meat processing facility destroyed in a fire in April 2009, that employed more 
84.33 	than 200 employees at the time of the destruction. The tax must be imposed and collected 
85.1 	as if the rate under section 297A.62, subdivision 1, applied and then refunded after June 
85.2 	30, 2011, in the manner provided in section 297A.75.

85.3 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
85.4 	April 30, 2009.

85.5 	Sec. 7. Minnesota Statutes 2008, section 297A.75, subdivision 1, is amended to read:
85.6 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the 
85.7 	following exempt items must be imposed and collected as if the sale were taxable and the 
85.8 	rate under section 297A.62, subdivision 1, applied. The exempt items include:
85.9 	(1) capital equipment exempt under section 297A.68, subdivision 5;
85.10 	(2) building materials for an agricultural processing facility exempt under section 
85.11 	297A.71, subdivision 13;
85.12 	(3) building materials for mineral production facilities exempt under section 
85.13 	297A.71, subdivision 14;
85.14 	(4) building materials for correctional facilities under section 297A.71, subdivision 
85.15 	3;
85.16 	(5) building materials used in a residence for disabled veterans exempt under section 
85.17 	297A.71, subdivision 11;
85.18 	(6) elevators and building materials exempt under section 297A.71, subdivision 12;
85.19 	(7) building materials for the Long Lake Conservation Center exempt under section 
85.20 	297A.71, subdivision 17;
85.21 	(8) materials, supplies, fixtures, furnishings, and equipment for a county law 
85.22 	enforcement and family service center under section 297A.71, subdivision 26;
85.23 	(9) (8) materials and supplies for qualified low-income housing under section 
85.24 	297A.71, subdivision 23; 
85.25 	(10) (9) materials, supplies, and equipment for municipal electric utility facilities 
85.26 	under section 297A.71, subdivision 35;
85.27 	(11) (10) equipment and materials used for the generation, transmission, and 
85.28 	distribution of electrical energy and an aerial camera package exempt under section 
85.29 	297A.68, subdivision 37; 
85.30 	(12) (11) tangible personal property and taxable services and construction materials, 
85.31 	supplies, and equipment exempt under section 297A.68, subdivision 41; 
85.32 	(13) (12) commuter rail vehicle and repair parts under section 297A.70, subdivision 
85.33 	3, clause (11); and
85.34 	(14) (13) materials, supplies, and equipment for construction or improvement of 
85.35 	projects and facilities under section 297A.71, subdivision 40.; and
86.1 	(14) materials, supplies, and equipment for construction or improvement of a meat 
86.2 	processing facility exempt under section 297A.71, subdivision 41.

86.3 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
86.4 	April 30, 2009.

86.5 	Sec. 8. Minnesota Statutes 2008, section 297A.75, subdivision 2, is amended to read:
86.6 		Subd. 2.Refund; eligible persons. Upon application on forms prescribed by the 
86.7 	commissioner, a refund equal to the tax paid on the gross receipts of the exempt items 
86.8 	must be paid to the applicant. Only the following persons may apply for the refund:
86.9 	(1) for subdivision 1, clauses (1) to (3), the applicant must be the purchaser;
86.10 	(2) for subdivision 1, clauses (4), and (7), and (8), the applicant must be the 
86.11 	governmental subdivision;
86.12 	(3) for subdivision 1, clause (5), the applicant must be the recipient of the benefits 
86.13 	provided in United States Code, title 38, chapter 21;
86.14 	(4) for subdivision 1, clause (6), the applicant must be the owner of the homestead 
86.15 	property;
86.16 	(5) for subdivision 1, clause (9) (8), the owner of the qualified low-income housing 
86.17 	project; 
86.18 	(6) for subdivision 1, clause (10) (9), the applicant must be a municipal electric 
86.19 	utility or a joint venture of municipal electric utilities; 
86.20 	(7) for subdivision 1, clauses (11) (10)and (12), (11), and (14), the owner of the 
86.21 	qualifying business; and
86.22 	(8) for subdivision 1, clauses (13) (12) and (14) (13), the applicant must be the 
86.23 	governmental entity that owns or contracts for the project or facility.

86.24 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
86.25 	April 30, 2009.

86.26 	Sec. 9. Minnesota Statutes 2008, section 297A.94, is amended to read:
86.27 	297A.94 DEPOSIT OF REVENUES.
86.28 	(a) Except as provided in this section, the commissioner shall deposit the revenues, 
86.29 	including interest and penalties, derived from the taxes imposed by this chapter in the state 
86.30 	treasury and credit them to the general fund.
86.31 	(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 
86.32 	account in the special revenue fund if:
87.1 	(1) the taxes are derived from sales and use of property and services purchased for 
87.2 	the construction and operation of an agricultural resource project; and
87.3 	(2) the purchase was made on or after the date on which a conditional commitment 
87.4 	was made for a loan guaranty for the project under section 41A.04, subdivision 3.
87.5 	The commissioner of finance shall certify to the commissioner the date on which the 
87.6 	project received the conditional commitment. The amount deposited in the loan guaranty 
87.7 	account must be reduced by any refunds and by the costs incurred by the Department of 
87.8 	Revenue to administer and enforce the assessment and collection of the taxes.
87.9 	(c) The commissioner shall deposit the revenues, including interest and penalties, 
87.10 	derived from the taxes imposed on sales and purchases included in section 297A.61, 
87.11 	subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them 
87.12 	as follows: 
87.13 	(1) first to the general obligation special tax bond debt service account in each fiscal 
87.14 	year the amount required by section 16A.661, subdivision 3, paragraph (b); and
87.15 	(2) after the requirements of clause (1) have been met, the balance to the general 
87.16 	fund.
87.17 	(d) The commissioner shall deposit the revenues, including interest and penalties, 
87.18 	collected under section 297A.64, subdivision 5, in the state treasury and credit them to the 
87.19 	general fund. By July 15 of each year the commissioner shall transfer to the highway user 
87.20 	tax distribution fund an amount equal to the excess fees collected under section 297A.64, 
87.21 	subdivision 5, for the previous calendar year.
87.22 	(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and 
87.23 	for fiscal year 2004 and thereafter, 72.43 percent of the revenues, including interest and 
87.24 	penalties, transmitted to the commissioner under section 297A.65, must be deposited by 
87.25 	the commissioner in the state treasury as follows:
87.26 	(1) 50 percent of the receipts must be deposited in the heritage enhancement account 
87.27 	in the game and fish fund, and may be spent only on activities that improve, enhance, or 
87.28 	protect fish and wildlife resources, including conservation, restoration, and enhancement 
87.29 	of land, water, and other natural resources of the state;
87.30 	(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
87.31 	may be spent only for state parks and trails;
87.32 	(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
87.33 	may be spent only on metropolitan park and trail grants;
87.34 	(4) three percent of the receipts must be deposited in the natural resources fund, and 
87.35 	may be spent only on local trail grants; and
88.1 	(5) two percent of the receipts must be deposited in the natural resources fund, 
88.2 	and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and 
88.3 	Conservatory, and the Duluth Zoo.
88.4 	(f) The revenue dedicated under paragraph (e) may not be used as a substitute 
88.5 	for traditional sources of funding for the purposes specified, but the dedicated revenue 
88.6 	shall supplement traditional sources of funding for those purposes. Land acquired with 
88.7 	money deposited in the game and fish fund under paragraph (e) must be open to public 
88.8 	hunting and fishing during the open season, except that in aquatic management areas or 
88.9 	on lands where angling easements have been acquired, fishing may be prohibited during 
88.10 	certain times of the year and hunting may be prohibited. At least 87 percent of the money 
88.11 	deposited in the game and fish fund for improvement, enhancement, or protection of fish 
88.12 	and wildlife resources under paragraph (e) must be allocated for field operations.
88.13 	(g) The revenues deposited under paragraphs (a) to (f) do not include the revenues, 
88.14 	including interest and penalties, generated by the sales tax imposed under section 
88.15 	297A.62, subdivision 1a, which must be deposited as provided under the Minnesota 
88.16 	Constitution, article XI, section 15.

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

88.18 	Sec. 10. Minnesota Statutes 2008, section 297B.02, subdivision 1, is amended to read:
88.19 		Subdivision 1.Rate. There is imposed an excise tax at the rate provided in chapter 
88.20 	297A of 6.5 percent on the purchase price of any motor vehicle purchased or acquired, 
88.21 	either in or outside of the state of Minnesota, which is required to be registered under 
88.22 	the laws of this state.
88.23 	The excise tax is also imposed on the purchase price of motor vehicles purchased 
88.24 	or acquired on Indian reservations when the tribal council has entered into a sales tax on 
88.25 	motor vehicles refund agreement with the state of Minnesota.

88.26 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
88.27 	June 30, 2009.

88.28 	Sec. 11. Laws 1986, chapter 396, section 4, subdivision 3, is amended to read:
88.29 		Subd. 3.Use of property. Revenues received from the tax may only be used:
88.30 	(1) to pay costs of collection;
88.31 	(2) to pay or secure the payment of any principal of, premium or interest on bonds 
88.32 	issued in accordance with this act;
89.1 	(3) to pay costs to acquire, design, equip, construct, improve, maintain, operate, 
89.2 	administer, or promote the convention center or related facilities, including financing 
89.3 	costs related to them;
89.4 	(4) to pay reasonable and appropriate costs determined by the city to replace housing 
89.5 	removed from the site; and
89.6 	(5) to maintain reserves for the foregoing purposes deemed reasonable and 
89.7 	appropriate by the city.; and
89.8 	(6) to fund projects under subdivision 4.
89.9 	In the event of any amendment to chapter 297A enacted subsequent to the effective date 
89.10 	of this act which exempts sales or uses which were taxable under chapter 297A on the 
89.11 	effective date of this act, the city may by ordinance extend the tax authorized hereby to 
89.12 	any such sales or uses provided that the city council shall have determined that such 
89.13 	extension is necessary to provide revenues for the uses to which taxes may be applied 
89.14 	under this section and further provided that, in the estimation of the city council, the 
89.15 	aggregate annual collections following such extension will not exceed the aggregate 
89.16 	annual collections which would have been generated if chapter 297A, as in effect on the 
89.17 	effective date of this act, were then in effect. Any revenue bonds issued in accordance 
89.18 	with this act may, with the consent of the city council, contain a covenant that the tax will 
89.19 	be so extended to the extent necessary to pay principal and interest on the bonds when due.
89.20 	Money for replacement housing shall be made available by the city only for new 
89.21 	construction, conversion of nonresidential buildings, and for rehabilitation of vacant 
89.22 	residential structures, only if all of the units in the newly constructed building, converted 
89.23 	nonresidential building, or rehabilitated residential structure are to be used for replacement 
89.24 	housing.

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

89.26 	Sec. 12. Laws 1986, chapter 396, section 4, is amended by adding a subdivision to read:
89.27 		Subd. 4.Minneapolis downtown and neighborhood projects. (a) For revenues 
89.28 	collected in calendar years 2009 and 2010, to the extent that revenues from the tax 
89.29 	authorized in subdivision 1 exceeds the amount needed to fund the purposes in subdivision 
89.30 	3, the city may use the excess revenue to fund any city services. The total amount used in 
89.31 	both years for this purpose may not exceed the total amount of aid and credit reductions 
89.32 	under Minnesota Statutes, sections 273.1384 and 477A.011 to 477A.014 in calendar years 
89.33 	2008, 2009, and 2010 due to a governor's unallotment or due to statutory reductions.
90.1 	(b) Beginning with revenues collected in calendar year 2011, to the extent that 
90.2 	revenues from the tax authorized in subdivision 1 exceeds the amount needed to fund the 
90.3 	purposes in subdivision 3, the city may use the excess revenue in any year to fund capital 
90.4 	projects to further residential, cultural, commercial, and economic development in both 
90.5 	downtown Minneapolis and the Minneapolis neighborhoods.

90.6 	EFFECTIVE DATE. This section is effective upon compliance of the governing 
90.7 	body of the city of Minneapolis with Minnesota Statutes, section 645.021, subdivisions 
90.8 	2 and 3.

90.9 	Sec. 13. Laws 1986, chapter 400, section 44, as amended by Laws 1995, chapter 264, 
90.10 	article 2, section 39, is amended to read:
90.11 	Sec. 44. DOWNTOWN TAXING AREA.
 90.12 	If a bill is enacted into law in the 1986 legislative session which authorizes the city 
90.13 	of Minneapolis to issue bonds and expend certain funds including taxes to finance the 
90.14 	acquisition and betterment of a convention center and related facilities, which authorizes 
90.15 	certain taxes to be levied in a downtown taxing area, then, notwithstanding the provisions 
90.16 	of that law "downtown taxing area" shall mean the geographic area bounded by the 
90.17 	portion of the Mississippi River between I-35W and Washington Avenue, the portion 
90.18 	of Washington Avenue between the river and I-35W, the portion of I-35W between 
90.19 	Washington Avenue and 8th Street South, the portion of 8th Street South between I-35W 
90.20 	and Portland Avenue South, the portion of Portland Avenue South between 8th Street 
90.21 	South and I-94, the portion of I-94 from the intersection of Portland Avenue South to 
90.22 	the intersection of I-94 and the Burlington Northern Railroad tracks, the portion of the 
90.23 	Burlington Northern Railroad tracks from I-94 to Main Street and including Nicollet 
90.24 	Island, and the portion of Main Street to Hennepin Avenue and the portion of Hennepin 
90.25 	Avenue between Main Street and 2nd Street S.E., and the portion of 2nd Street S.E. 
90.26 	between Main Street and Bank Street, and the portion of Bank Street between 2nd Street 
90.27 	S.E. and University Avenue S.E., and the portion of University Avenue S.E. between Bank 
90.28 	Street and I-35W, and by I-35W from University Avenue S.E., to the river. The downtown 
90.29 	taxing area excludes the area bounded on the south and west by Oak Grove Street, on the 
90.30 	east by Spruce Place, and on the north by West 15th Street. The downtown taxing area also 
90.31 	excludes any property located in a zone that is contained in chapter 546 of the Minneapolis 
90.32 	Zoning Code of Ordinances on which a restaurant with a wine license is operated.

90.33 	EFFECTIVE DATE. This section is effective for sales made after July 31, 2012, 
90.34 	provided that the proceeds of the tax collected between July 1, 2009, and July 31, 2012, 
91.1 	by a restaurant with a wine license that is excluded from the downtown taxing area by 
91.2 	this section, when collected by the commissioner of revenue, shall be deposited in the 
91.3 	general fund of the state treasury.

91.4 	Sec. 14. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended 
91.5 	by Laws 1998, chapter 389, article 8, section 28, and Laws 2008, chapter 366, article 
91.6 	7, section 9, is amended to read:
91.7 		Subd. 3. Use of revenues. Revenues received from taxes authorized by subdivisions 
91.8 	1 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or 
91.9 	a portion of the expenses of constructing and improving facilities as part of an urban 
91.10 	revitalization project in downtown Mankato known as Riverfront 2000. Authorized 
91.11 	expenses include, but are not limited to, acquiring property and paying relocation expenses 
91.12 	related to the development of Riverfront 2000 and related facilities, and securing or paying 
91.13 	debt service on bonds or other obligations issued to finance the construction of Riverfront 
91.14 	2000 and related facilities. For purposes of this section, "Riverfront 2000 and related 
91.15 	facilities" means a civic-convention center, an arena, a riverfront park, a technology center 
91.16 	and related educational facilities, and all publicly owned real or personal property that 
91.17 	the governing body of the city determines will be necessary to facilitate the use of these 
91.18 	facilities, including but not limited to parking, skyways, pedestrian bridges, lighting, and 
91.19 	landscaping. It also includes the performing arts theatre and the Southern Minnesota 
91.20 	Women's Hockey Exposition Center, attached to the Mankato Civic Center for use by 
91.21 	Minnesota State University, Mankato.

91.22 	EFFECTIVE DATE. This section is effective the day after the governing body of 
91.23 	the city of Mankato and its chief clerical officer comply with Minnesota Statutes, section 
91.24 	645.021, subdivisions 2 and 3.

91.25 	Sec. 15. Laws 1993, chapter 375, article 9, section 46, subdivision 2, as amended by 
91.26 	Laws 1997, chapter 231, article 7, section 40, and Laws 1998, chapter 389, article 8, 
91.27 	section 30, and Laws 2003, First Special Session chapter 21, article 8, section 13, and 
91.28 	Laws 2005, First Special Session chapter 3, article 5, section 26, is amended to read:
91.29 		Subd. 2.Use of revenues. Revenues received from the tax authorized by 
91.30 	subdivision 1 may only be used by the city to pay the cost of collecting the tax, and to pay 
91.31 	for the following projects or to secure or pay any principal, premium, or interest on bonds 
91.32 	issued in accordance with subdivision 3 for the following projects.
91.33 	(a) To pay all or a portion of the capital expenses of construction, equipment and 
91.34 	acquisition costs for the expansion and remodeling of the St. Paul Civic Center complex, 
92.1 	including the demolition of the existing arena and the construction and equipping of a 
92.2 	new arena.
92.3 	(b) Except as provided in paragraphs (e) and (f), the remainder of the funds must be 
92.4 	spent for:
92.5 	(1) capital projects to further residential, cultural, commercial, and economic 
92.6 	development in both downtown St. Paul and St. Paul neighborhoods; and
92.7 	(2) capital and operating expenses of cultural organizations in the city, provided 
92.8 	that the amount spent under this clause must equal ten percent of the total amount spent 
92.9 	under this paragraph in any year.
92.10 	(c) The amount apportioned under paragraph (b) shall be no less than 60 percent 
92.11 	of the revenues derived from the tax each year, except to the extent that a portion of that 
92.12 	amount is required to pay debt service on (1) bonds issued for the purposes of paragraph (a) 
92.13 	prior to March 1, 1998; or (2) bonds issued for the purposes of paragraph (a) after March 1, 
92.14 	1998, but only if the city council determines that 40 percent of the revenues derived from 
92.15 	the tax together with other revenues pledged to the payment of the bonds, including the 
92.16 	proceeds of definitive bonds, is expected to exceed the annual debt service on the bonds.
92.17 	(d) If in any year more than 40 percent of the revenue derived from the tax authorized 
92.18 	by subdivision 1 is used to pay debt service on the bonds issued for the purposes of 
92.19 	paragraph (a) and to fund a reserve for the bonds, the amount of the debt service payment 
92.20 	that exceeds 40 percent of the revenue must be determined for that year. In any year when 
92.21 	40 percent of the revenue produced by the sales tax exceeds the amount required to pay 
92.22 	debt service on the bonds and to fund a reserve for the bonds under paragraph (a), the 
92.23 	amount of the excess must be made available for capital projects to further residential, 
92.24 	cultural, commercial, and economic development in the neighborhoods and downtown 
92.25 	until the cumulative amounts determined for all years under the preceding sentence have 
92.26 	been made available under this sentence. The amount made available as reimbursement in 
92.27 	the preceding sentence is not included in the 60 percent determined under paragraph (c).
92.28 	(e) In each of calendar years 2006, 2007, 2008, and 2009 to 2014, revenue not to 
92.29 	exceed $3,500,000 may be used to pay the principal of bonds issued for capital projects of 
92.30 	the city. After December 31, 2009 2014, revenue from the tax imposed under subdivision 
92.31 	1 may not be used for this purpose.
92.32 	(f) By January 15 of each year, the mayor and the city council must report to the 
92.33 	legislature on the use of sales tax revenues during the preceding one-year period.

92.34 	EFFECTIVE DATE. This section is effective the day after the governing body of 
92.35 	the city of St. Paul and its chief clerical officer comply with Minnesota Statutes, section 
92.36 	645.021, subdivisions 2 and 3.

93.1 	Sec. 16. Laws 1993, chapter 375, article 9, section 46, is amended by adding a 
93.2 	subdivision to read:
93.3 		Subd. 2a.Unexpended funds and interest. Any interest from loan repayments 
93.4 	or returned funds from revenues apportioned under subdivision 2, paragraph (b), clause 
93.5 	(1), must be made available only for projects qualifying under subdivision 2, paragraph 
93.6 	(b), clause (1).

93.7 	EFFECTIVE DATE. This section is effective the day after the governing body of 
93.8 	the city of St. Paul and its chief clerical officer comply with Minnesota Statutes, section 
93.9 	645.021, subdivisions 2 and 3.

93.10 	Sec. 17. Laws 1996, chapter 471, article 2, section 30, is amended to read:
93.11 	Sec. 30. CITY OF LITTLE FALLS; TAX AUTHORIZED.
 93.12 		Subdivision 1.Sales of food; tax. The city of Little Falls may by ordinance impose 
93.13 	a tax of one-half percent on the gross receipts from the retail sale of food and nonalcoholic 
93.14 	beverages sold by the operator of a restaurant or place of refreshment within the city. The 
93.15 	tax imposed may be effective at any time after July 1, 1996.
93.16 		Subd. 1a.Sale of alcoholic beverages. The city of Little Falls may also by 
93.17 	ordinance impose the tax in subdivision 1 on the sales of alcoholic beverages sold by the 
93.18 	operator of a restaurant or place of refreshment in the city. Notwithstanding subdivision 
93.19 	5, and regardless of when the city imposes the tax under this subdivision, this tax will 
93.20 	expire when the tax in subdivision 1 expires.
93.21 		Subd. 2.Definitions. For purposes of this section:
93.22 	(1) "restaurant" means every building or other structure or enclosure, or any part 
93.23 	thereof and all buildings in connection, kept, used or maintained as, or held out to the 
93.24 	public to be an enclosure where meals or lunches are served or prepared for service 
93.25 	elsewhere, except schools;
93.26 	(2) "place of refreshment" means every building, structure, vehicle, sidewalk cart or 
93.27 	any part thereof, used as, maintained as, or advertised as, or held out to be a place where 
93.28 	confectionery, ice cream, or drinks of various kinds are made, sold, or served at retail, 
93.29 	excepting schools and school sponsored events; and 
93.30 	(3) "operator" means the person who is the proprietor of the restaurant, or place of 
93.31 	refreshment, whether in the capacity of owner, lessee, subleases, licensee, or an other 
93.32 	capacity.
93.33 		Subd. 3.Use of proceeds. The ordinance adopted by the city shall provide for 
93.34 	distribution of the proceeds of the tax. The proceeds of the tax must be used for tourism 
94.1 	purposes, including operating and maintaining the activities and programs of the tourism 
94.2 	and convention bureau.
94.3 		Subd. 4.Enforcement, collection, and administration of taxes. The tax imposed 
94.4 	under this section shall be enforced, administered, and collected by the city of Little Falls 
94.5 	provided that the city may contract with the commissioner of revenue to perform audits of 
94.6 	the tax on behalf of the city. The commissioner shall charge the city an amount that equals 
94.7 	the direct and indirect costs incurred by the department that are necessary to audit the tax.
94.8 		Subd. 5.Expiration of taxing authority. The tax imposed under this section shall 
94.9 	expire 15 subdivision 1 expires 30 years after it first becomes effective.
94.10 		Subd. 6.Effective date. This section is effective the day following compliance by 
94.11 	the governing body of the city of Little Falls with Minnesota Statutes, section 645.021, 
94.12 	subdivision 3.

94.13 	EFFECTIVE DATE. This section is effective the day following compliance by 
94.14 	the governing body of the city of Little Falls with Minnesota Statutes, section 645.021, 
94.15 	subdivisions 2 and 3.

94.16 	Sec. 18. Laws 1998, chapter 389, article 8, section 37, subdivision 1, is amended to 
94.17 	read:
94.18 		Subdivision 1.Requirement. Expenditures of revenues from the sales tax imposed 
94.19 	by the city of St. Paul that are dedicated to neighborhood investments may be made only 
94.20 	after review of the proposals for expenditures by the citizen review panel described in this 
94.21 	section. The panel must ensure that the application process for all proposals is open, fair, 
94.22 	and competitive. All proposals must be reviewed by the panel prior to presentation of the 
94.23 	proposal to the city council. The panel must evaluate the proposals and provide a report 
94.24 	to the city council that makes recommendations regarding the proposed expenditures 
94.25 	in rank order.

94.26 	EFFECTIVE DATE. This section is effective the day after the governing body of 
94.27 	the city of St. Paul and its chief clerical officer comply with Minnesota Statutes, section 
94.28 	645.021, subdivisions 2 and 3.

94.29 	Sec. 19. Laws 2002, chapter 377, article 3, section 25, is amended to read:
94.30 	Sec. 25. ROCHESTER LODGING TAX.
 94.31 		Subdivision 1.Authorization. Notwithstanding Minnesota Statutes, section 
94.32 	469.190 or 477A.016, or any other law, the city of Rochester may impose an additional 
94.33 	tax of one percent on the gross receipts from the furnishing for consideration of lodging at 
95.1 	a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it 
95.2 	for a continuous period of 30 days or more.
95.3 		Subd. 1a.Authorization. Notwithstanding Minnesota Statutes, section 469.190 or 
95.4 	477A.016, or any other law, and in addition to the tax authorized by subdivision 1, the city 
95.5 	of Rochester may impose an additional tax of one percent on the gross receipts from the 
95.6 	furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or 
95.7 	resort, other than the renting or leasing of it for a continuous period of 30 days or more only 
95.8 	upon the approval of the city governing body of a total financial package for the project.
95.9 		Subd. 2.Disposition of proceeds. (a) The gross proceeds from any the tax imposed 
95.10 	under subdivision 1 must be used by the city to fund a local convention or tourism bureau 
95.11 	for the purpose of marketing and promoting the city as a tourist or convention center.
95.12 	(b) The gross proceeds from the one percent tax imposed under subdivision 1a shall 
95.13 	be used to pay for (1) construction, renovation, improvement, and expansion of the Mayo 
95.14 	Civic Center and related skyway access, lighting, parking, or landscaping; and (2) for 
95.15 	payment of any principal, interest, or premium on bonds issued to finance the construction, 
95.16 	renovation, improvement, and expansion of the Mayo Civic Center Complex.
95.17 		Subd. 3.Expiration of taxing authority. The authority of the city to impose a tax 
95.18 	under subdivision 1a shall expire when the principal and interest on any bonds or other 
95.19 	obligations issued prior to December 31, 2014, to finance the construction, renovation, 
95.20 	improvement, and expansion of the Mayo Civic Center Complex and related skyway 
95.21 	access, lighting, parking, or landscaping have been paid or at an earlier time as the city 
95.22 	shall, by ordinance, determine.

95.23 	EFFECTIVE DATE. This section is effective the day after the governing body of 
95.24 	the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section 
95.25 	645.021, subdivisions 2 and 3.

95.26 	Sec. 20. Laws 2006, chapter 259, article 3, section 12, subdivision 3, is amended to 
95.27 	read:
95.28 		Subd. 3.Use of revenues. Revenues received from the taxes authorized by 
95.29 	subdivisions 1 and 2 must be used to pay all or part of the capital costs of transportation 
95.30 	projects included in the 2004 U.S. Highway 14-Owatonna Beltline Study by the Minnesota 
95.31 	Department of Transportation, Steele County, and the city of Owatonna; regional parks 
95.32 	and trail developments; and the West Hills complex, including the firehall, and library 
95.33 	improvement projects; as described in the city resolution No. 4-06, Exhibit A, as adopted 
95.34 	by the city on January 17, 2006. Notwithstanding the specific transportation projects 
95.35 	described in city resolution No. 4-06, Exhibit A, the city may transfer up to $1,500,000 
96.1 	of the sales and use tax revenues from the Alexander Street to 39th Avenue Southwest 
96.2 	project to the reconstruction of 18th Street Southwest from 24th Avenue Southwest to 39th 
96.3 	Avenue West. The amount paid from these revenues for transportation projects may not 
96.4 	exceed $4,450,000 plus associated bond costs. The amount paid from these revenues for 
96.5 	park and trail projects may not exceed $5,400,000 plus associated bond costs. The amount 
96.6 	paid from these revenues for West Hills complex, fire hall, and library improvement 
96.7 	projects may not exceed $2,823,000 plus associated bond costs.

96.8 	EFFECTIVE DATE. This section is effective the day after compliance by the 
96.9 	governing body of the city of Owatonna with Minnesota Statutes, section 645.021, 
96.10 	subdivision 3.

96.11 	Sec. 21. Laws 2008, chapter 366, article 7, section 16, subdivision 3, is amended to 
96.12 	read:
96.13 		Subd. 3.Use of proceeds from authorized taxes. The proceeds of any tax imposed 
96.14 	under subdivisions 1 and 2 shall be used by the city to pay all or a portion of the expenses 
96.15 	of operation and maintenance of the Riverfront 2000 and related facilities, including a 
96.16 	performing arts theatre and the Southern Minnesota Women's Hockey Exposition Center, 
96.17 	attached to the Mankato Civic Center for use by Minnesota State University, Mankato. 
96.18 	Authorized expenses include securing or paying debt service on bonds or other obligations 
96.19 	issued to finance the construction of the facilities.

96.20 	EFFECTIVE DATE. This section is effective the day after the governing body of 
96.21 	the city of Mankato and its chief clerical officer comply with Minnesota Statutes, section 
96.22 	645.021, subdivisions 2 and 3.

96.23 	Sec. 22. Laws 2008, chapter 366, article 7, section 18, subdivision 2, is amended to 
96.24 	read:
96.25 		Subd. 2.Use of revenues. Revenues received from the tax authorized by 
96.26 	subdivision 1 must be used by Cook County to pay the costs of collecting the tax and 
96.27 	to pay for the following projects:
96.28 	(1) construction and, improvements, and additions to a county community center
96.29 	centers  and public recreation area areas, including, but not limited to, improvements and 
96.30 	additions to the skateboard park, hockey rink, ball fields, community center addition, 
96.31 	county public parking area, tennis courts, and all associated improvements areas; and
96.32 	(2) construction of and improvements to the Grand Marais Public Library;
97.1 	(3) construction and improvement of a countywide high-speed communications 
97.2 	infrastructure network; and
97.3 	(4) construction and improvement of a district energy plant for public facilities in 
97.4 	Grand Marais.
97.5 	Authorized expenses include, but are not limited to, paying construction expenses related 
97.6 	to these improvements, and paying debt service on bonds or other obligations issued to 
97.7 	finance acquisition and construction of these improvements. The total amount of revenues 
97.8 	from the taxes in subdivision 1 that may be used to fund these projects is $14,000,000
97.9 	$20,000,000  plus any associated bond costs.

97.10 	EFFECTIVE DATE. This section is effective the day after the governing body 
97.11 	of Cook County and its chief clerical officer comply with Minnesota Statutes, section 
97.12 	645.021, subdivisions 2 and 3.

97.13 	Sec. 23. ROCHESTER FOOD AND BEVERAGE TAX.
 97.14 		Subdivision 1.Authorization. Notwithstanding Minnesota Statutes, section 
97.15 	477A.016, or any other law or charter provision, the city of Rochester may impose a tax of 
97.16 	one percent on the gross receipts on all sales of food and beverages by restaurants and 
97.17 	places of refreshment, as defined by resolution of the city, that occur in the city. For 
97.18 	purposes of this section, "food and beverages" include retail on-sale of intoxicating liquor 
97.19 	and fermented malt beverages.
97.20 		Subd. 2.Use of proceeds. The proceeds of this tax shall be used for (1) paying the 
97.21 	cost of collection; (2) to pay for construction, renovation, improvement, and expansion 
97.22 	of the Mayo Civic Center Complex and related skyway access, lighting, parking, or 
97.23 	landscaping; and (3) for payment of any principal, interest, or premium on bonds issued 
97.24 	to finance the construction, renovation, improvement, and expansion of the Mayo Civic 
97.25 	Center Complex.
97.26 		Subd. 3.Imposition of the tax. The tax under this section may only be imposed 
97.27 	upon approval of the city governing body of a total financing package for the project.
97.28 		Subd. 4.Expiration of taxing authority. The authority granted under subdivision 
97.29 	1 to the city to impose a one percent tax on food and beverages shall expire when the 
97.30 	principal and interest on any bonds or other obligations issued prior to December 31, 
97.31 	2014, to finance the construction, renovation, improvement, and expansion of the Mayo 
97.32 	Civic Center Complex and related skyway access, lighting, parking, or landscaping have 
97.33 	been paid or at an earlier time as the city shall, by ordinance, determine.

98.1 	EFFECTIVE DATE. This section is effective the day after the governing body of 
98.2 	the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section 
98.3 	645.021, subdivisions 2 and 3, and upon approval of the city governing body of a total 
98.4 	financing package to renovate, improve, or expand the Mayo Civic Center Complex.

98.5 	ARTICLE 5
98.6 	LOCAL DEVELOPMENT

98.7 	Section 1. Minnesota Statutes 2008, section 373.48, subdivision 1, is amended to read:
98.8 		Subdivision 1. Definitions. For the purpose of this section, "project" means a facility 
98.9 	that generates electricity from renewable energy sources listed in section 216B.1691, 
98.10 	subdivision 1, paragraph (a), clause (1). 

98.11 	Sec. 2. Minnesota Statutes 2008, section 373.48, is amended by adding a subdivision 
98.12 	to read:
98.13 		Subd. 3.Joint purchase of energy and acquisition of generation projects; 
98.14 	financing. (a) A county may enter into agreements under section 471.59 with other 
98.15 	counties for joint purchase of energy or joint acquisition of interests in projects. A county 
98.16 	that enters into a multiyear agreement for purchase of energy or acquires an interest in 
98.17 	a project, including C-BED projects pursuant to section 216B.1612, subdivision 9, may 
98.18 	finance the estimated cost of the energy to be purchased during the term of the agreement 
98.19 	or the cost to the county of the interest in the project by the issuance of revenue bonds of 
98.20 	the county, including clean renewable energy revenue bonds, provided that the annual debt 
98.21 	service on all bonds issued under this section, together with the amounts to be paid by the 
98.22 	county in any year for the purchase of energy under agreements entered into under this 
98.23 	section, must not exceed the estimated revenues of the project. 
98.24 	(b) An agreement entered into under section 471.59 as provided by this section 
98.25 	may provide that:
98.26 	(1) each county issues bonds to pay their respective shares of the cost of the projects; 
98.27 	(2) one of the counties issues bonds to pay the full costs of the project and that the 
98.28 	other participating counties pay any available revenues of the project and pledge the 
98.29 	revenues to the county that issues the bonds; or 
98.30 	(3) the joint powers board issues revenue bonds to pay the full costs of the project 
98.31 	and that the participating counties pay any available revenues of the project under this 
98.32 	subdivision and pledge the revenues to the joint powers entity for payment of the revenue 
98.33 	bonds.

99.1 	Sec. 3. Minnesota Statutes 2008, section 469.174, subdivision 22, is amended to read:
99.2 		Subd. 22.Tourism facility. "Tourism facility" means property that:
99.3 	(1) is located in a county where the median income is no more than 85 percent of 
99.4 	the state median income;
99.5 	(2) is located in a county in development region 2, 3, 4, or 5, or 7E, as defined 
99.6 	in section 462.385; 
99.7 	(3) is not located in a city with a population in excess of 20,000; and
99.8 	(4) is acquired, constructed, or rehabilitated for use as a convention and meeting 
99.9 	facility that is privately owned, marina, hotel, motel, lodging facility, or nonhomestead 
99.10 	dwelling unit that in each case is intended to serve primarily individuals from outside 
99.11 	the county.

99.12 	EFFECTIVE DATE. This section is effective for requests for certification made 
99.13 	after June 30, 2009.

99.14 	Sec. 4. Minnesota Statutes 2008, section 469.175, subdivision 1, is amended to read:
99.15 		Subdivision 1. Tax increment financing plan. (a) A tax increment financing plan 
99.16 	shall contain: 
99.17 	(1) a statement of objectives of an authority for the improvement of a project; 
99.18 	(2) a statement as to the development program for the project, including the property 
99.19 	within the project, if any, that the authority intends to acquire, identified by parcel number, 
99.20 	identifiable property name, block, or other appropriate means indicating the area in which 
99.21 	the authority intends to acquire properties; 
99.22 	(3) a list of any development activities that the plan proposes to take place within 
99.23 	the project, for which contracts have been entered into at the time of the preparation of 
99.24 	the plan, for which the authority has entered into an agreement or designated a developer
99.25 	including the names of the parties to the contract or designated developer, the activity 
99.26 	governed by the contract agreement or designation, the cost stated in the contract, and the 
99.27 	expected date of completion of that activity; 
99.28 	(4) identification or description of the type of any other specific development 
99.29 	reasonably expected to take place within the project district, and the date when the 
99.30 	development is likely to occur; 
99.31 	(5) estimates of the following: 
99.32 	(i) cost of the project, including administrative expenses, except that if part of the 
99.33 	cost of the project is paid or financed with increment from the tax increment financing 
99.34 	district, the tax increment financing plan for the district must contain an estimate of the 
99.35 	amount of the cost of the project, including administrative expenses, that and interest as a 
100.1 	financing cost, which will be paid or financed with tax increments from the district, but 
100.2 	not to exceed the estimated tax increment generated by the development activity; 
100.3 	(ii) amount of bonded indebtedness to be incurred bonds to be issued; 
100.4 	(iii) sources of revenue to finance or otherwise pay public costs; 
100.5 	(iv) the most recentoriginal net tax capacity of taxable real property within the tax 
100.6 	increment financing district and within any subdistrict; 
100.7 	(v)(iv) the estimated captured net tax capacity of the tax increment financing district 
100.8 	at completion; and
100.9 	(vi) (v) the duration of the tax increment financing district's and any subdistrict's 
100.10 	existence; 
100.11 	(6) statements of the authority's alternate estimates of the impact of tax increment 
100.12 	financing on the net tax capacities of all taxing jurisdictions in which the tax increment 
100.13 	financing district is located in whole or in part. For purposes of one statement, the 
100.14 	authority shall assume that the estimated captured net tax capacity would be available to 
100.15 	the taxing jurisdictions without creation of the district, and for purposes of the second 
100.16 	statement, the authority shall assume that none of the estimated captured net tax capacity 
100.17 	would be available to the taxing jurisdictions without creation of the district or subdistrict; 
100.18 	(7) identification and description of studies and analyses used to make the 
100.19 	determination set forth in subdivision 3, clause (2); and 
100.20 	(8) identification of all parcels to be included in the district or any subdistrict. 
100.21 	(b) The authority may specify in the tax increment financing plan the first year in 
100.22 	which it elects to receive increment, up to four years following the year of approval of the 
100.23 	district. This paragraph does not apply to an economic development district. 

100.24 	EFFECTIVE DATE. This section is effective for tax increment financing plans 
100.25 	approved after June 30, 2009.

100.26 	Sec. 5. Minnesota Statutes 2008, section 469.175, subdivision 6, is amended to read:
100.27 		Subd. 6.Annual financial reporting. (a) The state auditor shall develop a uniform 
100.28 	system of accounting and financial reporting for tax increment financing districts. The 
100.29 	system of accounting and financial reporting shall, as nearly as possible:
100.30 	(1) provide for full disclosure of the sources and uses of public funds in tax 
100.31 	increments of the district;
100.32 	(2) permit comparison and reconciliation with the affected local government's 
100.33 	accounts and financial reports;
100.34 	(3) permit auditing of the funds expended on behalf of a district, including a single 
100.35 	district that is part of a multidistrict project or that is funded in part or whole through 
101.1 	the use of a development account funded with tax increments from other districts or 
101.2 	with other public money;
101.3 	(4) be consistent with generally accepted accounting principles.
101.4 	(b) The authority must annually submit to the state auditor a financial report 
101.5 	in compliance with paragraph (a). Copies of the report must also be provided to the 
101.6 	county auditor and to the governing body of the municipality, if the authority is not 
101.7 	the municipality. To the extent necessary to permit compliance with the requirement 
101.8 	of financial reporting, the county and any other appropriate local government unit or 
101.9 	private entity must provide the necessary records or information to the authority or the 
101.10 	state auditor as provided by the system of accounting and financial reporting developed 
101.11 	pursuant to paragraph (a). The authority must submit the annual report for a year on or 
101.12 	before August 1 of the next year.
101.13 	(c) The annual financial report must also include the following items:
101.14 	(1) the original net tax capacity of the district and any subdistrict under section 
101.15 	469.177, subdivision 1;
101.16 	(2) the net tax capacity for the reporting period of the district and any subdistrict;
101.17 	(3) the captured net tax capacity of the district;
101.18 	(4) any fiscal disparity deduction from the captured net tax capacity under section 
101.19 	469.177, subdivision 3;
101.20 	(5) the captured net tax capacity retained for tax increment financing under section 
101.21 	469.177, subdivision 2, paragraph (a), clause (1);
101.22 	(6) any captured net tax capacity distributed among affected taxing districts under 
101.23 	section 469.177, subdivision 2, paragraph (a), clause (2);
101.24 	(7) the type of district;
101.25 	(8) the date the municipality approved the tax increment financing plan and the 
101.26 	date of approval of any modification of the tax increment financing plan, the approval of 
101.27 	which requires notice, discussion, a public hearing, and findings under subdivision 4, 
101.28 	paragraph (a);
101.29 	(9) the date the authority first requested certification of the original net tax capacity 
101.30 	of the district and the date of the request for certification regarding any parcel added 
101.31 	to the district;
101.32 	(10) the date the county auditor first certified the original net tax capacity of the 
101.33 	district and the date of certification of the original net tax capacity of any parcel added 
101.34 	to the district;
101.35 	(11) the month and year in which the authority has received or anticipates it will 
101.36 	receive the first increment from the district;
102.1 	(12) the date the district must be decertified;
102.2 	(13) for the reporting period and prior years of the district, the actual amount 
102.3 	received from, at least, the following categories:
102.4 	(i) tax increments paid by the captured net tax capacity retained for tax increment 
102.5 	financing under section 469.177, subdivision 2, paragraph (a), clause (1), but excluding 
102.6 	any excess taxes;
102.7 	(ii) tax increments that are interest or other investment earnings on or from tax 
102.8 	increments;
102.9 	(iii) tax increments that are proceeds from the sale or lease of property, tangible or 
102.10 	intangible, purchased by the authority with tax increments;
102.11 	(iv) tax increments that are repayments of loans or other advances made by the 
102.12 	authority with tax increments;
102.13 	(v) bond or loan proceeds; and
102.14 	(vi) special assessments;
102.15 	(vii) grants;
102.16 	(viii) transfers from funds not exclusively associated with the district; and
102.17 	(ix) (vi) the market value homestead credit paid to the authority under section 
102.18 	273.1384;
102.19 	(14) for the reporting period and for the prior years of the district, the actual amount 
102.20 	expended for, at least, the following categories:
102.21 	(i) acquisition of land and buildings through condemnation or purchase;
102.22 	(ii) site improvements or preparation costs;
102.23 	(iii) installation of public utilities, parking facilities, streets, roads, sidewalks, or 
102.24 	other similar public improvements;
102.25 	(iv) administrative costs, including the allocated cost of the authority; and
102.26 	(v) public park facilities, facilities for social, recreational, or conference purposes, or 
102.27 	other similar public improvements; and for housing districts, construction of affordable 
102.28 	housing;
102.29 	(vi) transfers to funds not exclusively associated with the district;
102.30 	(15) the amount of any payments for activities and improvements located outside of 
102.31 	the district that are paid for or financed with tax increments;
102.32 	(16) the amount of payments of principal and interest that are made during the 
102.33 	reporting period on any nondefeased:
102.34 	(i) general obligation tax increment financing bonds; and
102.35 	(ii) other tax increment financing bonds, including pay-as-you-go contracts and 
102.36 	notes; and
103.1 	(iii) notes and pay-as-you-go contracts;
103.2 	(17) the principal amount, at the end of the reporting period, of any nondefeased:
103.3 	(i) general obligation tax increment financing bonds; and
103.4 	(ii) other tax increment financing bonds, including pay-as-you-go contracts and 
103.5 	notes; and
103.6 	(iii) notes and pay-as-you-go contracts;
103.7 	(18) the amount of principal and interest payments that are due for the current 
103.8 	calendar year on any nondefeased:
103.9 	(i) general obligation tax increment financing bonds; and
103.10 	(ii) other tax increment financing bonds, including pay-as-you-go contracts and 
103.11 	notes; and
103.12 	(iii) notes and pay-as-you-go contracts;
103.13 	(19) if the fiscal disparities contribution under chapter 276A or 473F for the district 
103.14 	is computed under section 469.177, subdivision 3, paragraph (a), the amount of total 
103.15 	increased property taxes imposed on other properties in the municipality that approved the 
103.16 	tax increment financing plan as a result of the fiscal disparities contribution;  to be paid 
103.17 	from outside the tax increment financing district; and
103.18 	(20) the estimate, if any, contained in the tax increment financing plan of the amount 
103.19 	of the cost of the project, including administrative expenses, that will be paid or financed 
103.20 	with tax increment; and
103.21 	(21) any additional information the state auditor may require.
103.22 	(d) The commissioner of revenue shall prescribe the method of calculating the 
103.23 	increased property taxes under paragraph (c), clause (19), and the form of the statement 
103.24 	disclosing this information on the annual statement under subdivision 5.
103.25 	(e) (d) The reporting requirements imposed by this subdivision apply to districts 
103.26 	certified before, on, and after August 1, 1979.

103.27 	EFFECTIVE DATE. This section is effective for tax increment financing reports 
103.28 	due after December 31, 2009.

103.29 	Sec. 6. Minnesota Statutes 2008, section 469.176, subdivision 3, is amended to read:
103.30 		Subd. 3.Limitation on administrative expenses. (a) For districts for which 
103.31 	certification was requested before August 1, 1979, or after June 30, 1982 and before 
103.32 	August 1, 2001, no tax increment shall be used to pay any administrative expenses for 
103.33 	a project which exceed ten percent of the total estimated tax increment expenditures 
103.34 	authorized by the tax increment financing plan or the total tax increment expenditures 
103.35 	for the project, whichever is less.
104.1 	(b) For districts for which certification was requested after July 31, 1979, and before 
104.2 	July 1, 1982, no tax increment shall be used to pay administrative expenses, as defined in 
104.3 	Minnesota Statutes 1980, section 273.73, for a district which exceeds five percent of the 
104.4 	total tax increment expenditures authorized by the tax increment financing plan or the total 
104.5 	estimated tax increment expenditures for the district, whichever is less.  
104.6 	(c) For districts for which certification was requested after July 31, 2001, no tax 
104.7 	increment may be used to pay any administrative expenses for a project which exceed 
104.8 	ten percent of total estimated tax increment expenditures authorized by the tax increment 
104.9 	financing plan or the total tax increments, as defined in section 469.174, subdivision 25, 
104.10 	clause (1), from the district, whichever is less.  
104.11 	(d) Increments used to pay the county's administrative expenses under subdivision 
104.12 	4h are not subject to the percentage limits in this subdivision.

104.13 	EFFECTIVE DATE. This section is effective for all districts, regardless of when 
104.14 	the request for certification was made.

104.15 	Sec. 7. Minnesota Statutes 2008, section 469.176, subdivision 6, is amended to read:
104.16 		Subd. 6.Action required. (a) If, after four years from the date of certification of 
104.17 	the original net tax capacity of the tax increment financing district pursuant to section 
104.18 	469.177, no demolition, rehabilitation, or renovation of property or other site preparation, 
104.19 	including qualified improvement of a street adjacent to a parcel but not installation 
104.20 	of utility service including sewer or water systems, has been commenced on a parcel 
104.21 	located within a tax increment financing district by the authority or by the owner of the 
104.22 	parcel in accordance with the tax increment financing plan, no additional tax increment 
104.23 	may be taken from that parcel, and the original net tax capacity of that parcel shall be 
104.24 	excluded from the original net tax capacity of the tax increment financing district. If the 
104.25 	authority or the owner of the parcel subsequently commences demolition, rehabilitation, 
104.26 	or renovation or other site preparation on that parcel including qualified improvement of 
104.27 	a street adjacent to that parcel, in accordance with the tax increment financing plan, the 
104.28 	authority shall certify to the county auditor that the activity has commenced, and the 
104.29 	county auditor shall certify the net tax capacity thereof as most recently certified by the 
104.30 	commissioner of revenue and add it to the original net tax capacity of the tax increment 
104.31 	financing district. The county auditor must enforce the provisions of this subdivision. The 
104.32 	authority must submit to the county auditor evidence that the required activity has taken 
104.33 	place for each parcel in the district. The evidence for a parcel must be submitted by 
104.34 	February 1 of the fifth year following the year in which the parcel was certified as included 
104.35 	in the district. For purposes of this subdivision, qualified improvements of a street are 
105.1 	limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) 
105.2 	substantial reconstruction or rebuilding of an existing street.  
105.3 	(b) For districts which were certified on or after January 1, 2005, and before April 
105.4 	20, 2009, the four-year period under paragraph (a) is increased to six years.

105.5 	EFFECTIVE DATE. This section is effective for districts certified on or after 
105.6 	January 1, 2005.

105.7 	Sec. 8. Minnesota Statutes 2008, section 469.1763, subdivision 3, is amended to read:
105.8 		Subd. 3.Five-year rule. (a) Revenues derived from tax increments are considered 
105.9 	to have been expended on an activity within the district under subdivision 2 only if one 
105.10 	of the following occurs:
105.11 	(1) before or within five years after certification of the district, the revenues are 
105.12 	actually paid to a third party with respect to the activity;
105.13 	(2) bonds, the proceeds of which must be used to finance the activity, are issued and 
105.14 	sold to a third party before or within five years after certification, the revenues are spent 
105.15 	to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, 
105.16 	reasonably expected to be spent before the end of the later of (i) the five-year period, or 
105.17 	(ii) a reasonable temporary period within the meaning of the use of that term under section 
105.18 	148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve 
105.19 	or replacement fund;
105.20 	(3) binding contracts with a third party are entered into for performance of the 
105.21 	activity before or within five years after certification of the district and the revenues are 
105.22 	spent under the contractual obligation;
105.23 	(4) costs with respect to the activity are paid before or within five years after 
105.24 	certification of the district and the revenues are spent to reimburse a party for payment 
105.25 	of the costs, including interest on unreimbursed costs; or
105.26 	(5) expenditures are made for housing purposes as permitted by subdivision 2, 
105.27 	paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted 
105.28 	by subdivision 2, paragraph (e).
105.29 	(b) For purposes of this subdivision, bonds include subsequent refunding bonds if 
105.30 	the original refunded bonds meet the requirements of paragraph (a), clause (2).
105.31 	(c) For a redevelopment district or a renewal and renovation district certified after 
105.32 	June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph 
105.33 	(a) are extended to ten years after certification of the district. This extension is provided 
105.34 	primarily to accommodate delays in development activities due to unanticipated economic 
105.35 	circumstances.

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

106.2 	Sec. 9. Minnesota Statutes 2008, section 469.178, subdivision 7, is amended to read:
106.3 		Subd. 7. Interfund loans. The authority or municipality may advance or loan 
106.4 	money to finance expenditures under section 469.176, subdivision 4, from its general 
106.5 	fund or any other fund under which it has legal authority to do so. The loan or advance 
106.6 	must be authorized, by resolution of the governing body or of the authority, whichever 
106.7 	has jurisdiction over the fund from which the advance or loan is made authorized, before 
106.8 	money is transferred, advanced, or spent, whichever is earliest. The resolution may 
106.9 	generally grant to the authority the power to make interfund loans under one or more tax 
106.10 	increment financing plans or for one or more districts. The terms and conditions for 
106.11 	repayment of the loan must be provided in writing and include, at a minimum, the principal 
106.12 	amount, the interest rate, and maximum term. The maximum rate of interest permitted to 
106.13 	be charged is limited to the greater of the rates specified under section 270C.40 or 549.09
106.14 	as of the date the loan or advance is made authorized, unless the written agreement states 
106.15 	that the maximum interest rate will fluctuate as the interest rates specified under section 
106.16 	270C.40 or 549.09 are from time to time adjusted. 

106.17 	EFFECTIVE DATE. This section is effective for interfund loans made after June 
106.18 	30, 2009.

106.19 	Sec. 10. Minnesota Statutes 2008, section 469.312, subdivision 5, is amended to read:
106.20 		Subd. 5.Duration limit. (a) The maximum duration of a zone is 12 years. The 
106.21 	applicant may request a shorter duration. The commissioner may specify a shorter 
106.22 	duration, regardless of the requested duration.
106.23 	(b) The duration limit under this subdivision and the duration of the zone for 
106.24 	purposes of allowance of tax incentives described in section 469.315 is extended by three 
106.25 	calendar years for each parcel of property that meets the following requirements:
106.26 	(1) the qualified business operates an ethanol plant, as defined in section 41A.09, on 
106.27 	the site that includes the parcel; and 
106.28 	(2) the business subsidy agreement was executed after April 30, 2006.
106.29 	(c) The duration limit under this subdivision and the duration of the zone for 
106.30 	purposes of allowance of tax incentives described in section 469.315 is extended by five 
106.31 	calendar years for each parcel of property that meets the following requirements:
106.32 	(1) the parcel is located in a county with an unemployment rate that on the date that 
106.33 	the business subsidy agreement is executed (i) equals or exceeds ten percent or (ii) is ten 
106.34 	percent higher than the statewide average;
107.1 	(2) the operations of the qualified business on the site include:
107.2 	(i) its headquarters;
107.3 	(ii) facilities for research and development; and
107.4 	(iii) the manufacturing of products, used by the building, transport, consumer 
107.5 	products, and industrial products sectors, that reduce the use of or increase the efficiency 
107.6 	of the use of energy resources and that are manufactured using innovative and high 
107.7 	technology processes; and
107.8 	(3) the business subsidy agreement is executed after July 1, 2009, and before July 1, 
107.9 	2011.

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

107.11 	Sec. 11. Laws 2008, chapter 366, article 5, section 34, is amended to read:
107.12 	Sec. 34. CITY OF OAKDALE; ORIGINAL TAX CAPACITY. 
 107.13 	(a) The provisions of this section apply to redevelopment tax increment financing 
107.14 	districts created by the Housing and Redevelopment Authority in and for the city of 
107.15 	Oakdale in the areas comprised of the parcels with the following parcel identification 
107.16 	numbers: (1) 3102921320053; 3102921320054; 3102921320055; 3102921320056; 
107.17 	3102921320057; 3102921320058; 3102921320062; 3102921320063; 3102921320059; 
107.18 	3102921320060; and 3102921320061; and (2) 3102921330005; and 3102921330004; and 
107.19 	(2) 2902921330001 and 2902921330005.
107.20 	(b) For a district subject to this section, the Housing and Redevelopment Authority 
107.21 	may, when requesting certification of the original tax capacity of the district under 
107.22 	Minnesota Statutes, section 469.177, elect to have the original tax capacity of the district 
107.23 	be certified as the tax capacity of the land.
107.24 	(c) The authority to request certification of a district under this section expires on 
107.25 	July 1, 2013.

107.26 	EFFECTIVE DATE. This section is effective upon approval by the governing 
107.27 	body of the city of Oakdale and compliance with Minnesota Statutes, section 645.021, 
107.28 	subdivision 3.

107.29 	Sec. 12. CHISAGO CITY AND LINDSTROM JOINT VENTURE.
 107.30 	Any two or more of the cities of Chisago City and Lindstrom, their economic 
107.31 	development authorities, housing and redevelopment authorities, and the county of 
107.32 	Chisago may enter into a joint powers agreement to acquire and develop or redevelop 
107.33 	a business park in either city. Any party to the agreement may spend money or issue 
108.1 	debt for all or a part of the project, regardless of whether the project is located within its 
108.2 	corporate boundaries. Issuance of debt under this section is subject to Minnesota Statutes, 
108.3 	chapter 475, except that an election is not required. The agreement may provide for the 
108.4 	parties to share revenues from the project. Any party to the agreement may levy taxes 
108.5 	or spend its funds, as otherwise permitted by law, to pay for the project, including debt 
108.6 	issued to finance the project. 
108.7 	If the project is included in a tax increment financing district, each city and authority 
108.8 	that is a party to the agreement may treat the tax increment financing district as being 
108.9 	located within its corporate boundaries for purposes of the authority under the tax 
108.10 	increment financing act, Minnesota Statutes, sections 469.174 to 469.1799, to spend 
108.11 	increments or issue bonds for the project.

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

108.13 	Sec. 13. CITY OF SAUK RAPIDS; TIF.
 108.14 	Any parcel in the city of Sauk Rapids located within Blocks 26, 27, 59, 61, and 62, 
108.15 	original town of Sauk Rapids Plat, is deemed to meet the requirements of Minnesota 
108.16 	Statutes, section 469.174, subdivision 10, paragraph (d), clause (1), if the following 
108.17 	conditions are met:
108.18 	(1) a building on the parcel was demolished in compliance with Minnesota Statutes, 
108.19 	section 469.174, subdivision 10, paragraph (d), clause (2), after the authority adopted a 
108.20 	resolution pursuant to Minnesota Statutes, section 469.174, subdivision 10, paragraph 
108.21 	(d), clause (3); and
108.22 	(2) the request for certification of the parcel as part of a district is filed with the 
108.23 	county auditor by December 31, 2012.

108.24 	EFFECTIVE DATE. This section is effective upon compliance by the governing 
108.25 	body of the city of Sauk Rapids with the requirements of Minnesota Statutes, section 
108.26 	645.021, subdivision 3.

108.27 	Sec. 14. HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF 
108.28 	SOUTH ST. PAUL; TAX INCREMENT FINANCING DISTRICT.
 108.29 		Subdivision 1.Authorization. Notwithstanding the provisions of any other law, 
108.30 	the Housing and Redevelopment Authority of the city of South St. Paul may establish a 
108.31 	redevelopment tax increment financing district comprised of the properties included in the 
108.32 	existing Concord Street tax increment district in the city that are exempt under Minnesota 
108.33 	Statutes, section 469.179, subdivision 1, and were not decertified before July 1, 2009. The 
109.1 	district created under this section may be certified after August 1, 2009, and terminates no 
109.2 	later than December 31, 2024. The Housing and Redevelopment Authority of the city of 
109.3 	South St. Paul may create the district under this section only if it enters into an agreement 
109.4 	with Dakota County to pay the county annually out of the increment from this district an 
109.5 	amount equal to the tax that would have been payable to the county on the captured tax 
109.6 	capacity of the district had the district not been created.
109.7 		Subd. 2.Special rules. The requirements for qualifying a redevelopment district 
109.8 	under Minnesota Statutes, section 469.174, subdivision 10, do not apply to parcels located 
109.9 	within the district. Minnesota Statutes, section 469.176, subdivisions 4j and 4l, do not 
109.10 	apply to the district. The original tax capacity of the district is $354,945.
109.11 		Subd. 3.Authorized expenditures. Tax increment from the district may be 
109.12 	expended to pay for any eligible activities authorized by Minnesota Statutes, chapter 
109.13 	469, within the redevelopment area that includes the district. All such expenditures are 
109.14 	deemed to be activities within the district under Minnesota Statutes, section 469.1763, 
109.15 	subdivisions 2, 3, and 4.
109.16 		Subd. 4.Adjusted net tax capacity. The captured tax capacity of the district must 
109.17 	be included in the adjusted net tax capacity of the city, county, and school district for the 
109.18 	purposes of determining local government aid, education aid, and county program aid. 
109.19 	The county auditor shall report to the commissioner of revenue the amount of the captured 
109.20 	tax capacity for the district at the time the assessment abstracts are filed.

109.21 	EFFECTIVE DATE. This section is effective upon compliance with Minnesota 
109.22 	Statutes, section 645.021, subdivision 3, by the governing body of the city of South St. 
109.23 	Paul.

109.24 	Sec. 15. CITY OF MINNETONKA; TAX INCREMENT FINANCING 
109.25 	DISTRICT EXTENSION.
 109.26 	Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision 
109.27 	1b, paragraph (a), clause (1), the governing bodies of the city of Minnetonka and its 
109.28 	economic development authority may elect to extend the maximum duration of all or 
109.29 	a portion the Glenhaven Tax Increment Financing District by up to seven years. The 
109.30 	city may make the election under this section only if it finds by resolution that when it 
109.31 	approved the original tax increment financing plan for the Glenhaven Tax Increment 
109.32 	Financing District the area of the district qualified to be certified as a redevelopment 
109.33 	district under Minnesota Statutes, section 469.174, subdivision 10, or that the portion of 
109.34 	the district it is electing to extend so qualified. The city must document this finding in the 
110.1 	manner provided under Minnesota Statutes, section 469.175, subdivision 3, paragraph (b), 
110.2 	clause (1), for a redevelopment district.

110.3 	EFFECTIVE DATE. This section is effective upon compliance with Minnesota 
110.4 	Statutes, sections 469.1782, subdivision 2, and 645.021, subdivision 3.

110.5 	Sec. 16. CITY OF ARDEN HILLS; SPECIAL TAX INCREMENT FINANCING 
110.6 	AUTHORITY.
 110.7 		Subdivision 1.Establishment. The city of Arden Hills may establish within the 
110.8 	corporate boundaries of the city a redevelopment tax increment financing district subject 
110.9 	to the special rules under subdivision 2. The district must be located within the area 
110.10 	described in the TCAAP Boundary Survey dated December 12, 2007, by W. Brown Land 
110.11 	Surveying, Inc.
110.12 		Subd. 2.Special rules. (a) If the city elects to adopt the tax increment financing 
110.13 	plan in subdivision 1 for the district, the following rules apply to the district:
110.14 	(1) the district is deemed to meet all the requirements of Minnesota Statutes, section 
110.15 	469.174, subdivision 10;
110.16 	(2) the five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is 
110.17 	extended to a ten-year period; and
110.18 	(3) the duration limit under Minnesota Statutes, section 469.176, subdivision 1b, 
110.19 	paragraph (a), clause (4), is extended to 30 years after receipt of the first increment.
110.20 	(b) Notwithstanding Minnesota Statutes, section 469.175, subdivision 1, paragraph 
110.21 	(b), the city may designate the first year in which it elects to receive an increment, up to six 
110.22 	years following the year of approval of the district. The city must make the designation 
110.23 	by written notice to the county auditor delivered by June 30 of the year prior to the 
110.24 	designated year of first receipt.
110.25 		Subd. 3.Expiration. The authority to approve a tax increment financing plan to 
110.26 	establish a tax increment financing district under this section expires December 31, 2019.

110.27 	EFFECTIVE DATE. This section is effective upon approval by the governing body 
110.28 	of the city of Arden Hills and upon compliance by the city with Minnesota Statutes, 
110.29 	sections 469.1782, subdivision 2, and 645.021, subdivision 3.

110.30 	Sec. 17. SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT 
110.31 	FINANCING DISTRICT; SPECIAL RULES.
 110.32 	(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and 
110.33 	the governing body of the city of Duluth approves the plan for the tax increment financing 
111.1 	district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020; 
111.2 	010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090; 
111.3 	010-2730-00100; 010-2730-00160; 010-2730-00180; 010-2730-00200; 010-2730-01250; 
111.4 	010-2730-01340; 010-2730-01350; 010-2730-01490; 010-2730-01500; 010-2730-01510; 
111.5 	010-2730-01520; 010-2730-01530; 010-2730-01540; 010-2730-01550; 010-2730-01560; 
111.6 	010-2730-01570; 010-2730-01580; 010-2730-01590; 010-2730-1300; 010-2746-1330; 
111.7 	010-2746-1440; 010-2746-1380; 010-3300-4560; 010-3300-4565; 010-3300-04570; 
111.8 	010-3300-04580; 010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year 
111.9 	rule under Minnesota Statutes, section 469.1763, subdivision 3, that activities must be 
111.10 	undertaken within a five-year period from the date of certification of the tax increment 
111.11 	financing district, must be considered to be met if the activities are undertaken within five 
111.12 	years after the date all qualifying parcels are delisted from the Federal Superfund list.
111.13 	(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, 
111.14 	beginning in the sixth year following certification of the district requirement, will begin 
111.15 	in the sixth year following the date all qualifying parcels are delisted from the Federal 
111.16 	Superfund list. 
111.17 	(c) The action required under Minnesota Statutes, section 469.176 subdivision 6, 
111.18 	are satisfied if the action is commenced within four years after the date all qualifying 
111.19 	parcels are delisted from the Federal Superfund list and evidence of the action required is 
111.20 	submitted to the county auditor by February 1 of the fifth year following the year in which 
111.21 	all qualifying parcels are delisted from the Federal Superfund list.
111.22 	(d) For purposes of this section, "qualifying parcels" means United States Steel 
111.23 	parcels listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as 
111.24 	part of the USS Site (USEPA OU 02) that are included in the tax increment financing 
111.25 	district.
111.26 	(e) In addition to the reporting requirements of Minnesota Statutes, section 469.175, 
111.27 	subdivision 5, the Seaway Port Authority of Duluth shall report the status of all parcels 
111.28 	listed in paragraph (a) and shown as part of the USS Site (USEPA OU 02). The status 
111.29 	report must show the parcel numbers, the listed or delisted status, and if delisted, the 
111.30 	delisting date.

111.31 	EFFECTIVE DATE. This section is effective upon approval by the governing 
111.32 	body of the city of Duluth and compliance with Minnesota Statutes, section 645.021, 
111.33 	subdivision 3.

111.34 	Sec. 18. CITY OF MANKATO; TAX INCREMENT FINANCING DISTRICT; 
111.35 	PROJECT REQUIREMENTS.
 112.1 		Subdivision 1.Expenditures outside district. Notwithstanding Minnesota Statutes, 
112.2 	section 469.1763, subdivision 2, or any other law to the contrary, the city of Mankato may 
112.3 	expend increments generated from its South Riverfront tax increment financing district for 
112.4 	construction of street and roadway improvements under the Sibley Parkway Plan, provided 
112.5 	the improvements are located within 500 feet or less of the boundaries of the district.
112.6 		Subd. 2.Five-year rule. The five-year rule under Minnesota Statutes, section 
112.7 	469.1763, subdivision 3, is extended to an 11-year period for the South Riverfront tax 
112.8 	increment financing district.

112.9 	EFFECTIVE DATE. This section is effective upon approval by the governing 
112.10 	body of the city of Mankato and upon compliance by the city with Minnesota Statutes, 
112.11 	section 645.021, subdivision 3.

112.12 	Sec. 19. CITY OF ST. LOUIS PARK; EXTENSION OF TAX INCREMENT 
112.13 	DISTRICT DURATION.
 112.14 	Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, the duration 
112.15 	of the Elmwood Village Tax Increment Financing District is extended to 22 years after 
112.16 	receipt by the St. Louis Park Economic Development Authority of the first increment 
112.17 	from the district.

112.18 	EFFECTIVE DATE. This section is effective upon compliance by the governing 
112.19 	body of the city of St. Louis Park with the requirements of Minnesota Statutes, sections 
112.20 	469.1782, subdivision 2, and 645.021, subdivision 3.

112.21 	Sec. 20. MOUNTAIN IRON ECONOMIC DEVELOPMENT AUTHORITY; 
112.22 	WIND ENERGY PROJECT.
 112.23 	(a) The Mountain Iron economic development authority may form or become a 
112.24 	member of a limited liability company organized under Minnesota Statutes, chapter 322B, 
112.25 	for the purpose of developing a community-based energy development project pursuant 
112.26 	to Minnesota Statutes, section 216B.1612. A limited liability company formed or joined 
112.27 	under this section is subject to the open meeting requirements established in Minnesota 
112.28 	Statutes, chapter 13D. A project authorized by this section may not sell, transmit, or 
112.29 	distribute the electrical energy at retail or provide for end use of the electrical energy to an 
112.30 	off-site facility of the economic development authority or the limited liability company. 
112.31 	Nothing in this section modifies the exclusive service territories or exclusive right to serve 
112.32 	as provided in Minnesota Statutes, sections 216B.37 to 216B.43.
113.1 	(b) The authority may acquire a leasehold interest in property outside its corporate 
113.2 	boundaries for the purpose of developing a community-based energy development project 
113.3 	as provided in Minnesota Statutes, section 216B.1612.

113.4 	EFFECTIVE DATE. This section is effective the day after the city of Mountain 
113.5 	Iron and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
113.6 	subdivisions 2 and 3.

113.7 	Sec. 21. WINONA COUNTY ECONOMIC DEVELOPMENT AUTHORITY; 
113.8 	WIND ENERGY PROJECT.
 113.9 	(a) The Winona County economic development authority may form or become a 
113.10 	member of a limited liability company organized under Minnesota Statutes, chapter 322B, 
113.11 	for the purpose of developing a community-based energy development project pursuant 
113.12 	to Minnesota Statutes, section 216B.1612. A limited liability company formed or joined 
113.13 	under this section is subject to the open meeting requirements established in Minnesota 
113.14 	Statutes, chapter 13D. A project authorized by this section may not sell, transmit, or 
113.15 	distribute the electrical energy at retail or provide for end use of the electrical energy to an 
113.16 	off-site facility of the economic development authority or the limited liability company. 
113.17 	Nothing in this section modifies the exclusive service territories or exclusive right to serve 
113.18 	as provided in Minnesota Statutes, sections 216B.37 to 216B.43.
113.19 	(b) The authority may acquire a leasehold interest in property outside its corporate 
113.20 	boundaries for the purpose of developing a community-based energy development project 
113.21 	as provided in Minnesota Statutes, section 216B.1612.

113.22 	EFFECTIVE DATE. This section is effective the day after the county of Winona 
113.23 	and its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 
113.24 	2 and 3.

113.25 	ARTICLE 6
113.26 	PUBLIC FINANCE

113.27 	Section 1. [16A.647] TAX CREDIT AND INTEREST SUBSIDY BONDS.
113.28 		Subdivision 1.Authority to issue. When authorized by law to issue state general 
113.29 	obligation bonds, the commissioner may issue all or part of the bonds as tax credit bonds 
113.30 	or as interest subsidy bonds or a combination of the two.
113.31 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have 
113.32 	the meanings given them.
114.1 	(b) "Tax credit bonds" means bonds, the interest on which is includable in the 
114.2 	income of the owner of the bonds for federal income tax purposes, but for which the 
114.3 	owner is entitled to a federal tax credit.
114.4 	(c) "Interest subsidy bonds" means bonds, the interest on which is includable in the 
114.5 	income of the owner of the bonds for federal income tax purposes, but for which the 
114.6 	issuer is entitled to federal interest subsidy payments based on a percentage of the interest 
114.7 	payable on the interest subsidy bonds.
114.8 		Subd. 3.Method of sale. Notwithstanding the provisions of section 16A.641, 
114.9 	subdivision 4, the commissioner may sell any series of tax credit bonds or interest 
114.10 	subsidy bonds at negotiated sale upon the terms and conditions and the restrictions the 
114.11 	commissioner prescribes, but the commissioner may contract for investment banking 
114.12 	and banking services only after receiving competitive proposals for the services. The 
114.13 	commissioner may enter into all contracts deemed necessary or desirable to accomplish 
114.14 	the sale in a cost-effective manner.
114.15 		Subd. 4.Sinking fund. The commissioner's order authorizing the issuance of 
114.16 	interest subsidy bonds must establish a separate sinking fund account for the interest 
114.17 	subsidy bonds in the state bond fund. There is annually appropriated, as received, to each 
114.18 	interest subsidy bond account, in addition to amounts appropriated under section 16A.641, 
114.19 	the interest subsidy payments received from the federal government with respect to that 
114.20 	issue of interest subsidy bonds in that year.
114.21 		Subd. 5.Sale. Tax credit bonds and interest subsidy bonds must be sold at a price 
114.22 	not less than 98 percent of their stated principal amount. No state trunk highway bond 
114.23 	may be sold for a price of less than par and accrued interest.

114.24 	Sec. 2. Minnesota Statutes 2008, section 37.31, subdivision 8, is amended to read:
114.25 		Subd. 8.Expiration. The authority to issue bonds, other than bonds to refund 
114.26 	outstanding bonds, under this section expires July 1, 2009 2015.

114.27 	Sec. 3. Minnesota Statutes 2008, section 126C.55, subdivision 4, is amended to read:
114.28 		Subd. 4.Pledge of district's full faith and credit. If, at the request of a school 
114.29 	district or intermediate school district, the state has paid part or all of the principal or 
114.30 	interest due on a district's debt obligation on a specific date, the pledge of the full faith and 
114.31 	credit and unlimited taxing powers of the school district or the member districts of the 
114.32 	intermediate district to repay the principal and interest due on those debt obligations shall 
114.33 	also, without an election or the requirement of a further authorization, become a pledge of 
114.34 	the full faith and credit and unlimited taxing powers of the school district or the member 
115.1 	districts of the intermediate district to repay to the state the amount paid, with interest. 
115.2 	Amounts paid by the state must be repaid in the order in which the state payments were 
115.3 	made. Whenever the state pays under this section interest on bonds for which the issuer is 
115.4 	entitled to federal interest subsidy payments, the state is subrogated to the issuer's rights to 
115.5 	any federal interest subsidy payments relating to the interest paid by the state, unless and 
115.6 	until the state has been reimbursed by the issuer in full.

115.7 	Sec. 4. Minnesota Statutes 2008, section 204B.46, is amended to read:
115.8 	204B.46 MAIL ELECTIONS; QUESTIONS. 
115.9 	A county, municipality, or school district submitting questions to the voters at a 
115.10 	special election may conduct an election by mail with no polling place other than the office 
115.11 	of the auditor or clerk. No more than two questions may be submitted at a mail election 
115.12 	and no offices may be voted on at a mail election. Notice of the election must be given 
115.13 	to the county auditor at least 53 days prior to the election. This notice shall also fulfill 
115.14 	the requirements of Minnesota Rules, part 8210.3000. The special mail ballot procedures 
115.15 	must be posted at least six weeks prior to the election. No earlier than 20 or later than 14 
115.16 	days prior to the election, the auditor or clerk shall mail ballots by nonforwardable mail 
115.17 	to all voters registered in the county, municipality, or school district. Eligible voters not 
115.18 	registered at the time the ballots are mailed may apply for ballots pursuant to chapter 203B.

115.19 	Sec. 5. Minnesota Statutes 2008, section 360.036, subdivision 2, is amended to read:
115.20 		Subd. 2.Issuance of bonds. (a) Bonds to be issued by a municipality under sections 
115.21 	360.011 to 360.076, shall be authorized and issued in the manner and within the limitation 
115.22 	prescribed by laws or the charter of the municipality for the issuance and authorization of 
115.23 	bonds for public purposes generally, except as provided in paragraphs (b) and (c). 
115.24 	(b) No election is required to authorize the issuance of the bonds if:
115.25 	(1) a board organized under section 360.042 recommends by a resolution adopted 
115.26 	by a vote of not less than 60 percent of its members the issuance of bonds, and the 
115.27 	bonds are authorized by a resolution of the governing body of each of the municipalities 
115.28 	acting jointly pursuant to section 360.042, adopted by a vote of not less than 60 percent 
115.29 	of its members; or
115.30 	(2) the bonds are authorized by a resolution of the governing body of the 
115.31 	municipality, adopted by a vote of not less than 60 percent of its members; or
115.32 	(3) the bonds are being issued for the purpose of financing the costs of constructing, 
115.33 	enlarging, or improving airports and other air navigation facilities; and
116.1 	(i) the governing body estimates that passenger facility charges and other revenues 
116.2 	pledged to the payment thereof will be at least 20 percent of the debt service payable 
116.3 	on the bonds in any year;
116.4 	(ii) the project will be funded in part by a state or federal grant for airport 
116.5 	development; and
116.6 	(iii) the principal amount of the bonds issued under this clause does not exceed 25 
116.7 	percent of the amount of the state or federal grant.
116.8 	(c) If the bonds are general obligations of the municipality, the levy of taxes required 
116.9 	by section 475.61 to pay principal and interest on the bonds is not included in computing 
116.10 	or applying any levy limitation applicable to the municipality.

116.11 	Sec. 6. Minnesota Statutes 2008, section 366.095, subdivision 1, is amended to read:
116.12 		Subdivision 1.Certificates of indebtedness. The town board may issue certificates 
116.13 	of indebtedness within the debt limits for a town purpose otherwise authorized by law. 
116.14 	The certificates shall be payable in not more than five ten years and be issued on the terms 
116.15 	and in the manner as the board may determine. If the amount of the certificates to be 
116.16 	issued exceeds 0.25 percent of the market value of the town, they shall not be issued for at 
116.17 	least ten days after publication in a newspaper of general circulation in the town of the 
116.18 	board's resolution determining to issue them. If within that time, a petition asking for an 
116.19 	election on the proposition signed by voters equal to ten percent of the number of voters 
116.20 	at the last regular town election is filed with the clerk, the certificates shall not be issued 
116.21 	until their issuance has been approved by a majority of the votes cast on the question at 
116.22 	a regular or special election. A tax levy shall be made to pay the principal and interest 
116.23 	on the certificates as in the case of bonds.

116.24 	Sec. 7. Minnesota Statutes 2008, section 373.47, subdivision 1, is amended to read:
116.25 		Subdivision 1. Authority to incur debt. Subject to prior approval by the Statewide 
116.26 	Radio Board under section 403.36, the governing body of a county may finance the cost of 
116.27 	designing, constructing, and acquiring public safety communication system infrastructure 
116.28 	and equipment for use on the statewide, shared public safety radio system by issuing: 
116.29 	(1) capital improvement bonds under section 373.40, as if the infrastructure and 
116.30 	equipment qualified as a "capital improvement" within the meaning of section 373.40, 
116.31 	subdivision 1, paragraph (b), bonds issued under this section are exempt from and shall 
116.32 	not be included in calculating the limitations in section 373.40, subdivision 4; and 
117.1 	(2) capital notes under the provisions of section 373.01, subdivision 3, as if the 
117.2 	equipment qualified as "capital equipment" within the meaning of section 373.01, 
117.3 	subdivision 3.

117.4 	EFFECTIVE DATE. This section is effective the day following final enactment, 
117.5 	and applies to bonds issued after May 22, 2002.

117.6 	Sec. 8. Minnesota Statutes 2008, section 428A.03, subdivision 1, is amended to read:
117.7 		Subdivision 1.Hearing. Service charges may be imposed by the city within the 
117.8 	special service district at a rate or amount sufficient to produce the revenues required to 
117.9 	provide special services in the district. To determine the appropriate rate for a service 
117.10 	charge based on net tax capacity, taxable property or net tax capacity must be determined 
117.11 	without regard to captured or original net tax capacity under section 469.177 or to the 
117.12 	distribution or contribution value under section 473F.08. Service charges may not be 
117.13 	imposed to finance a special service if the service is ordinarily provided by the city from 
117.14 	its general fund revenues unless the service is provided in the district at an increased level. 
117.15 	In that case, a service charge may be imposed only in the amount needed to pay for the 
117.16 	increased level of service. A service charge may not be imposed on the receipts from the 
117.17 	sale of intoxicating liquor, food, or lodging. Before the imposition of service charges in a 
117.18 	district, for each calendar year, a hearing must be held under section 428A.02 and notice 
117.19 	must be given and must be mailed to any owner, individual, or business organization 
117.20 	subject to a service charge. For purposes of this section, the notice shall also include:
117.21 	(1) a statement that all interested persons will be given an opportunity to be heard at 
117.22 	the hearing regarding a proposed service charge;
117.23 	(2) the estimated cost of improvements to be paid for in whole or in part by service 
117.24 	charges imposed under this section, the estimated cost of operating and maintaining 
117.25 	the improvements during the first year and upon completion of the improvements, the 
117.26 	proposed method and source of financing the improvements, and the annual cost of 
117.27 	operating and maintaining the improvements;
117.28 	(3) the proposed rate or amount of the proposed service charge to be imposed in 
117.29 	the district during the calendar year and the nature and character of special services to 
117.30 	be rendered in the district during the calendar year in which the service charge is to be 
117.31 	collected; and
117.32 	(4) a statement that the petition requirements of section 428A.08 have either been 
117.33 	met or do not apply to the proposed service charge.
118.1 	Within six months of the public hearing, the city may adopt a resolution imposing 
118.2 	a service charge within the district not exceeding the amount or rate expressed in the 
118.3 	notice issued under this section.

118.4 	Sec. 9. Minnesota Statutes 2008, section 428A.08, is amended to read:
118.5 	428A.08 PETITION REQUIRED.
118.6 	No action may be taken under section 428A.02or 428A.03, unless owners of 25 
118.7 	percent or more of the land area of property that would be subject to service charges in the 
118.8 	proposed special service district and either: (1) owners of 25 percent or more of the net tax 
118.9 	capacity of property that would be subject to a proposed service charges in the proposed 
118.10 	special service district charge, based on net tax capacity; or (2) owners, individuals, and 
118.11 	business organizations subject to 25 percent or more of a proposed service charge based 
118.12 	on other than net tax capacity file a petition requesting a public hearing on the proposed 
118.13 	action with the city clerk. No action may be taken under section 428A.03 to impose 
118.14 	a service charge based on net tax capacity unless owners of 25 percent or more of the 
118.15 	land area subject to a proposed service charge and owners of 25 percent or more of the 
118.16 	net tax capacity subject to a proposed service charge file a petition requesting a public 
118.17 	hearing on the proposed action with the city clerk. No action may be taken under section 
118.18 	428A.03 to impose any other type of service charge unless 25 percent or more of the 
118.19 	individual or business organizations subject to the proposed service charge file a petition 
118.20 	requesting a public hearing on the proposed action with the city clerk. If the boundaries of 
118.21 	a proposed district are changed or the land area or net tax capacity subject to a service 
118.22 	charge or the individuals or business organizations subject to a service charge are changed 
118.23 	after the public hearing, a petition meeting the requirements of this section must be filed 
118.24 	with the city clerk before the ordinance establishing the district or resolution imposing 
118.25 	the service charge may become effective.

118.26 	Sec. 10. Minnesota Statutes 2008, section 428A.09, is amended to read:
118.27 	428A.09 VETO POWER OF OWNERS.
118.28 		Subdivision 1.Notice of right to file objections. Except as provided in section 
118.29 	428A.10, the effective date of any ordinance or resolution adopted under sections 428A.02
118.30 	and 428A.03 must be at least 45 days after it is adopted. Within five days after adoption 
118.31 	of the ordinance or resolution, a summary of the ordinance or resolution must be mailed 
118.32 	to the owner of each parcel included in the special service district and any individual or 
118.33 	business organization subject to a service charge in the same manner that notice is mailed 
118.34 	under section 428A.02. The mailing must include a notice that owners subject to a service 
119.1 	charge based on net tax capacity and owners, individuals, and business organizations 
119.2 	subject to a service charge imposed on another basis have a right to veto the ordinance 
119.3 	or resolution by filing the required number of objections with the city clerk before the 
119.4 	effective date of the ordinance or resolution and that a copy of the ordinance or resolution 
119.5 	is on file with the city clerk for public inspection.
119.6 		Subd. 2.Requirements for veto. If owners of 35 percent or more of the land 
119.7 	area in the district subject to the service charge based on net tax capacity or owners 
119.8 	of, individuals, and business organizations subject to  35 percent or more of the net tax 
119.9 	capacity in the district subject to the service charge based on net tax capacity service 
119.10 	charges to be imposed in the district,  file an objection to the ordinance adopted by the city 
119.11 	under section 428A.02 with the city clerk before the effective date of the ordinance, the 
119.12 	ordinance does not become effective. If owners of 35 percent or more of the land area 
119.13 	subject to the service charge based on net tax capacity or owners of 35 percent or more 
119.14 	of the net tax capacity subject to the service charge based on net tax capacity file an 
119.15 	objection to the resolution adopted imposing a service charge based on net tax capacity 
119.16 	under section 428A.03 with the city clerk before the effective date of the resolution, the 
119.17 	resolution does not become effective. If 35 percent or more of owners, individuals, and 
119.18 	business organizations subject to a 35 percent or more of the  service charge charges to 
119.19 	be imposed in the district file an objection to the resolution adopted imposing a service 
119.20 	charge on a basis other than net tax capacity under section 428A.03 with the city clerk 
119.21 	before the effective date of the resolution, the resolution does not become effective. In the 
119.22 	event of a veto, no district shall be established during the current calendar year and until a 
119.23 	petition meeting the qualifications set forth in this subdivision for a veto has been filed.

119.24 	Sec. 11. Minnesota Statutes 2008, section 428A.10, is amended to read:
119.25 	428A.10 EXCLUSION FROM PETITION REQUIREMENTS AND VETO 
119.26 	POWER.
119.27 	The petition requirements of section 428A.08and do not apply to second or 
119.28 	subsequent years' action to impose service charges under section 428A.03. The right of 
119.29 	owners and those subject to a service charge to veto a resolution in section 428A.09
119.30 	do does not apply to second or subsequent years' applications of a service charge that 
119.31 	is authorized to be in effect for more than one year under a resolution that has met the 
119.32 	petition requirements of section 428A.08 and which has not been vetoed under section 
119.33 	428A.09 for the first year's application. A resolution imposing a service charge for more 
119.34 	than one year must not be adopted unless the notice of public hearing required by section 
120.1 	428A.03 and the notice mailed with the adopted resolution under section 428A.09 include 
120.2 	the following information:
120.3 	(1) in the case of improvements, the maximum service charge to be imposed in any 
120.4 	year and the maximum number of years the service charges charge is imposed to pay 
120.5 	for the improvement; and
120.6 	(2) in the case of operating and maintenance services, the maximum service charge 
120.7 	to be imposed in any year and the maximum number of years, or a statement that the 
120.8 	service charge will be imposed for an indefinite number of years, the service charges will 
120.9 	be imposed to pay for operation and maintenance services.
120.10 	The resolution may provide that the maximum service charge to be imposed in any 
120.11 	year will increase or decrease from the maximum amount authorized in the preceding 
120.12 	year based on an indicator of increased cost or a percentage amount established by the 
120.13 	resolution.

120.14 	Sec. 12. Minnesota Statutes 2008, section 446A.086, is amended by adding a 
120.15 	subdivision to read:
120.16 		Subd. 12.Federal interest subsidy payments. Whenever the state pays under 
120.17 	this section interest on bonds for which the issuer is entitled to federal interest subsidy 
120.18 	payments, the state is subrogated to the issuer's rights to any federal interest subsidy 
120.19 	payments relating to the interest paid by the state, unless and until the state has been 
120.20 	reimbursed by the issuer in full.

120.21 	Sec. 13. Minnesota Statutes 2008, section 469.005, subdivision 1, is amended to read:
120.22 		Subdivision 1.County and multicounty authorities. The area of operation of a 
120.23 	county authority shall include all of the county for which it is created, and in case of 
120.24 	a multicounty authority, it shall include all of the political subdivisions for which the 
120.25 	multicounty authority is created; provided, that a county authority or a multicounty 
120.26 	authority shall not undertake any project within the boundaries of any city which has not 
120.27 	empowered the authority to function therein as provided in section 469.004 unless a 
120.28 	resolution has been adopted by the governing body of the city, and by any authority which 
120.29 	has been established in the city, declaring that there is a need for the county or multicounty 
120.30 	authority to exercise its powers in the city. A resolution is not required for the operation of 
120.31 	a Section 8 program or a public housing scattered site project.

120.32 	Sec. 14. Minnesota Statutes 2008, section 469.015, subdivision 1, is amended to read:
121.1 		Subdivision 1.Bids; notice. All construction work, and work of demolition or 
121.2 	clearing, and every purchase of equipment, supplies, or materials, necessary in carrying 
121.3 	out the purposes of sections 469.001 to 469.047, that involve expenditure of $50,000 or 
121.4 	more shall be awarded by contract as provided in section 471.345. Before receiving 
121.5 	bids under section 471.345, subdivision 3, the authority shall publish, once a week for 
121.6 	two consecutive weeks in an official newspaper of general circulation in the community a 
121.7 	notice that bids will be received for that construction work, or that purchase of equipment, 
121.8 	supplies, or materials. The notice shall state the nature of the work and the terms and 
121.9 	conditions upon which the contract is to be let, naming a time and place where bids will 
121.10 	be received, opened and read publicly, which time shall be not less than seven days after 
121.11 	the date of the last publication. After the bids have been received, opened and read 
121.12 	publicly and recorded, the authority shall award the contract to the lowest responsible 
121.13 	bidder, provided that the authority reserves the right to reject any or all bids. Each 
121.14 	contract shall be executed in writing, and the person to whom the contract is awarded 
121.15 	shall give sufficient bond to the authority for its faithful performance. If no satisfactory 
121.16 	bid is received, the authority may readvertise. The authority may establish reasonable 
121.17 	qualifications to determine the fitness and responsibility of bidders and to require bidders 
121.18 	to meet the qualifications before bids are accepted.  

121.19 	Sec. 15. Minnesota Statutes 2008, section 469.015, subdivision 2, is amended to read:
121.20 		Subd. 2.Exception; emergency. If the authority by a vote of four-fifths of its 
121.21 	members shall declare that an emergency exists requiring the immediate purchase of 
121.22 	any equipment or material or supplies at a cost in excess of $50,000 but not exceeding 
121.23 	$75,000 the amount provided in section 471.345, or making of emergency repairs, it shall 
121.24 	not be necessary to advertise for bids, but the material, equipment, or supplies may be 
121.25 	purchased in the open market at the lowest price obtainable, or the emergency repairs may 
121.26 	be contracted for or performed without securing formal competitive bids. An emergency, 
121.27 	for purposes of this subdivision, shall be understood to be unforeseen circumstances or 
121.28 	conditions which result in the placing in jeopardy of human life or property.

121.29 	Sec. 16. Minnesota Statutes 2008, section 469.015, subdivision 3, is amended to read:
121.30 		Subd. 3.Performance and payment bonds. Performance and payment bonds shall 
121.31 	be required from contractors for any works of construction as provided in and subject to 
121.32 	all the provisions of sections 574.26 to 574.31except for contracts entered into by an 
121.33 	authority for an expenditure of less than $50,000.  

122.1 	Sec. 17. Minnesota Statutes 2008, section 469.034, subdivision 2, is amended to read:
122.2 		Subd. 2.General obligation revenue bonds. (a) An authority may pledge the 
122.3 	general obligation of the general jurisdiction governmental unit as additional security for 
122.4 	bonds payable from income or revenues of the project or the authority. The authority 
122.5 	must find that the pledged revenues will equal or exceed 110 percent of the principal and 
122.6 	interest due on the bonds for each year. The proceeds of the bonds must be used for a 
122.7 	qualified housing development project or projects. The obligations must be issued and 
122.8 	sold in the manner and following the procedures provided by chapter 475, except the 
122.9 	obligations are not subject to approval by the electors, and the maturities may extend to 
122.10 	not more than 35 years for obligations sold to finance housing for the elderly and 40 years 
122.11 	for other obligations issued under this subdivision. The authority is the municipality for 
122.12 	purposes of chapter 475.
122.13 	(b) The principal amount of the issue must be approved by the governing body of 
122.14 	the general jurisdiction governmental unit whose general obligation is pledged. Public 
122.15 	hearings must be held on issuance of the obligations by both the authority and the general 
122.16 	jurisdiction governmental unit. The hearings must be held at least 15 days, but not more 
122.17 	than 120 days, before the sale of the obligations.
122.18 	(c) The maximum amount of general obligation bonds that may be issued and 
122.19 	outstanding under this section equals the greater of (1) one-half of one percent of 
122.20 	the taxable market value of the general jurisdiction governmental unit whose general 
122.21 	obligation is pledged, or (2) $3,000,000. In the case of county or multicounty general 
122.22 	obligation bonds, the outstanding general obligation bonds of all cities in the county 
122.23 	or counties issued under this subdivision must be added in calculating the limit under 
122.24 	clause (1).
122.25 	(d) "General jurisdiction governmental unit" means the city in which the housing 
122.26 	development project is located. In the case of a county or multicounty authority, the 
122.27 	county or counties may act as the general jurisdiction governmental unit. In the case of 
122.28 	a multicounty authority, the pledge of the general obligation is a pledge of a tax on the 
122.29 	taxable property in each of the counties.
122.30 	(e) "Qualified housing development project" means a housing development project 
122.31 	providing housing either for the elderly or for individuals and families with incomes not 
122.32 	greater than 80 percent of the median family income as estimated by the United States 
122.33 	Department of Housing and Urban Development for the standard metropolitan statistical 
122.34 	area or the nonmetropolitan county in which the project is located. The project must be 
122.35 	owned for the term of the bonds either by the authority or by a limited partnership or other 
122.36 	entity in which the authority or another entity under the sole control of the authority is the 
123.1 	sole general partner and the partnership or other entity must receive (1) an allocation from 
123.2 	the Department of Finance or an entitlement issuer of tax-exempt bonding authority for 
123.3 	the project and a preliminary determination by the Minnesota Housing Finance Agency 
123.4 	or the applicable suballocator of tax credits that the project will qualify for four percent 
123.5 	low-income housing tax credits or (2) a reservation of nine percent low-income housing 
123.6 	tax credits from the Minnesota Housing Finance Agency or a suballocator of tax credits 
123.7 	for the project. A qualified housing development project may admit nonelderly individuals 
123.8 	and families with higher incomes if:
123.9 	(1) three years have passed since initial occupancy;
123.10 	(2) the authority finds the project is experiencing unanticipated vacancies resulting in 
123.11 	insufficient revenues, because of changes in population or other unforeseen circumstances 
123.12 	that occurred after the initial finding of adequate revenues; and
123.13 	(3) the authority finds a tax levy or payment from general assets of the general 
123.14 	jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher 
123.15 	income individuals or families are not admitted.
123.16 	(f) The authority may issue bonds to refund bonds issued under this subdivision in 
123.17 	accordance with section 475.67. The finding of the adequacy of pledged revenues required 
123.18 	by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the 
123.19 	issuance of refunding bonds. This paragraph applies to refunding bonds issued on and 
123.20 	after July 1, 1992.

123.21 	Sec. 18. Minnesota Statutes 2008, section 469.153, subdivision 2, is amended to read:
123.22 		Subd. 2. Project. (a) "Project" means (1) any properties, real or personal, used 
123.23 	or useful in connection with a revenue producing enterprise, or any combination of 
123.24 	two or more such enterprises engaged or to be engaged in generating, transmitting, or 
123.25 	distributing electricity, assembling, fabricating, manufacturing, mixing, processing, 
123.26 	storing, warehousing, or distributing any products of agriculture, forestry, mining, or 
123.27 	manufacture, or in research and development activity in this field, or in the manufacturing, 
123.28 	creation, or production of intangible property, including any patent, copyright, formula, 
123.29 	process, design, know how, format, or other similar item; (2) any properties, real or 
123.30 	personal, used or useful in the abatement or control of noise, air, or water pollution, or in 
123.31 	the disposal of solid wastes, in connection with a revenue producing enterprise, or any 
123.32 	combination of two or more such enterprises engaged or to be engaged in any business 
123.33 	or industry; (3) any properties, real or personal, used or useful in connection with the 
123.34 	business of telephonic communications, conducted or to be conducted by a telephone 
123.35 	company, including toll lines, poles, cables, switching, and other electronic equipment 
124.1 	and administrative, data processing, garage, and research and development facilities; 
124.2 	(4) any properties, real or personal, used or useful in connection with a district heating 
124.3 	system, consisting of the use of one or more energy conversion facilities to produce hot 
124.4 	water or steam for distribution to homes and businesses, including cogeneration facilities, 
124.5 	distribution lines, service facilities, and retrofit facilities for modifying the user's heating 
124.6 	or water system to use the heat energy converted from the steam or hot water. 
124.7 	(b) "Project" also includes any properties, real or personal, used or useful in 
124.8 	connection with a revenue producing enterprise, or any combination of two or more 
124.9 	such enterprises engaged in any business. 
124.10 	(c) "Project" also includes any properties, real or personal, used or useful for the 
124.11 	promotion of tourism in the state. Properties may include hotels, motels, lodges, resorts, 
124.12 	recreational facilities of the type that may be acquired under section 471.191, and related 
124.13 	facilities. 
124.14 	(d) "Project" also includes any properties, real or personal, used or useful in 
124.15 	connection with a revenue producing enterprise, whether or not operated for profit, 
124.16 	engaged in providing health care services, including hospitals, nursing homes, and related 
124.17 	medical facilities. 
124.18 	(e) "Project" does not include any property to be sold or to be affixed to or consumed 
124.19 	in the production of property for sale, and does not include any housing facility to be 
124.20 	rented or used as a permanent residence. 
124.21 	(f) "Project" also means the activities of any revenue producing enterprise involving 
124.22 	the construction, fabrication, sale, or leasing of equipment or products to be used in 
124.23 	gathering, processing, generating, transmitting, or distributing solar, wind, geothermal, 
124.24 	biomass, agricultural or forestry energy crops, or other alternative energy sources for 
124.25 	use by any person or any residential, commercial, industrial, or governmental entity in 
124.26 	heating, cooling, or otherwise providing energy for a facility owned or operated by that 
124.27 	person or entity. 
124.28 	(g) "Project" also includes any properties, real or personal, used or useful in 
124.29 	connection with a county jail, county regional jail, community corrections facilities 
124.30 	authorized by chapter 401, or other law enforcement facilities, the plans for which are 
124.31 	approved by the commissioner of corrections; provided that the provisions of section 
124.32 	469.155, subdivisions 7 and 13, do not apply to those projects. 
124.33 	(h) "Project" also includes any real properties used or useful in furtherance of the 
124.34 	purpose and policy of section 469.141. 
124.35 	(i) "Project" also includes related facilities as defined by section 471A.02, 
124.36 	subdivision 11. 
125.1 	(j) "Project" also includes an undertaking to purchase the obligations of local 
125.2 	governments located in whole or in part within the boundaries of the municipality that are 
125.3 	issued or to be issued for public purposes. 

125.4 	Sec. 19. Minnesota Statutes 2008, section 471.191, subdivision 1, is amended to read:
125.5 		Subdivision 1.Lease to nonprofit. Any city operating a program of public 
125.6 	recreation and playgrounds pursuant to sections 471.15 to 471.19 may acquire or lease, 
125.7 	equip, and maintain land, buildings, and other recreational facilities, including, but 
125.8 	without limitation, outdoor or indoor swimming pools, skating rinks and arenas, athletic 
125.9 	fields, golf courses, marinas, concert halls, museums, and facilities for other kinds of 
125.10 	athletic or cultural participation, contests, conventions, conferences, and exhibitions, 
125.11 	together with related automobile parking facilities as defined in section 459.14, and may 
125.12 	expend funds for the operation of such program and borrow and expend funds for capital 
125.13 	costs thereof pursuant to the provisions of this section. A school district operating a 
125.14 	program of public recreation and playgrounds has the rights provided in this section. Any 
125.15 	facilities to be operated by a nonprofit corporation, as contemplated in section 471.16, 
125.16 	may be leased to the corporation upon such rentals and for such term, not exceeding 30 
125.17 	years, and subject to such other provisions as may be agreed; including but not limited to 
125.18 	provisions (a) permitting the lessee, subject to whatever conditions are stated, to provide 
125.19 	for the construction and equipment of the facilities by any means available to it and in the 
125.20 	manner determined by it, without advertisement for bids as required for other municipal 
125.21 	facilities, and (b) granting the lessee the option to renew the lease upon such conditions 
125.22 	and rentals, or to purchase the facilities at such price, as may be agreed; provided that (c) 
125.23 	any such lease shall require the lessee to pay net rentals sufficient to pay the principal, 
125.24 	interest, redemption premiums, and other expenses when due with respect to all city 
125.25 	bonds issued for the acquisition or betterment of the facilities, less such amount of taxes 
125.26 	and special assessments, if any, as may become payable in any year of the term of the 
125.27 	lease, on the land, building, or other facilities leased, and (d) no option shall be granted 
125.28 	to purchase the facilities at any time at a price less than the amount required to pay all 
125.29 	principal and interest to become due on such bonds to the earliest date or dates on which 
125.30 	they may be paid and redeemed, and all redemption premiums and other expenses of 
125.31 	such payment and redemption.

125.32 	Sec. 20. Minnesota Statutes 2008, section 473.39, is amended by adding a subdivision 
125.33 	to read:
126.1 		Subd. 1o.Obligations. After July 1, 2009, in addition to other authority in this 
126.2 	section, the council may issue certificates of indebtedness, bonds, or other obligations 
126.3 	under this section in an amount not exceeding $34,200,000 for capital expenditures as 
126.4 	prescribed in the council's regional transit master plan and transit capital improvement 
126.5 	program and for related costs, including the costs of issuance and sale of the obligations.

126.6 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
126.7 	final enactment and applies to the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
126.8 	Scott, and Washington.

126.9 	Sec. 21. Minnesota Statutes 2008, section 474A.02, subdivision 2, is amended to read:
126.10 		Subd. 2.Annual volume cap. "Annual volume cap" means the aggregate dollar 
126.11 	amount of obligations constituting "private activity bonds" under federal tax law and 
126.12 	bearing interest excluded from gross income for purposes of federal income taxation 
126.13 	which, under the provisions of federal tax law, may be issued in one year by issuers.
126.14 	The commissioner shall administer the volume cap allocations for obligations permitted 
126.15 	under the federal American Recovery and Reinvestment Act of 2009, whether taxable or 
126.16 	tax-exempt, in accordance with orders of the commissioner.

126.17 	Sec. 22. Minnesota Statutes 2008, section 474A.02, subdivision 14, is amended to read:
126.18 		Subd. 14.Manufacturing project. "Manufacturing project" means any facility 
126.19 	which is used in the manufacturing or production of tangible personal property, 
126.20 	including the processing resulting in a change in the condition of the property, or in the 
126.21 	manufacturing, creation, or production of intangible property, including any patent, 
126.22 	copyright, formula, process, design, know how, format, or other similar item.

126.23 	Sec. 23. Minnesota Statutes 2008, section 475.67, subdivision 8, is amended to read:
126.24 		Subd. 8.Escrow account securities. Securities purchased for the escrow account 
126.25 	shall be limited to:
126.26 	(a) general obligations of the United States, securities whose principal and interest 
126.27 	payments are guaranteed by the United States, and securities issued by the following 
126.28 	agencies of the United States: Banks for Cooperatives, Federal Home Loan Banks, 
126.29 	Federal Intermediate Credit Banks, Federal Land Banks, and the Federal National 
126.30 	Mortgage Association; or
126.31 	(b) obligations issued or guaranteed by any state or any political subdivision of a 
126.32 	state, which at the date of purchase are rated in the highest or the next highest rating 
126.33 	given category  by Standard and Poor's Corporation, Moody's Investors Service, or a 
127.1 	similar nationally recognized rating agency, but not less than the rating on the refunded 
127.2 	bonds immediately prior to the refunding.
127.3 	"Rating category," as used in this subdivision, means a generic securities rating 
127.4 	category, without regard in the case of a long-term rating category to any refinement or 
127.5 	gradation of such long-term rating category by a numerical modifier or otherwise.

127.6 	Sec. 24. Laws 1971, chapter 773, section 4, as amended by Laws 1976, chapter 234, 
127.7 	section 2, is amended to read:
127.8 	Sec. 4. No proceeds of any bonds issued pursuant to section 1 hereof shall be 
127.9 	expended for the construction or equipment of any portion of the St. Paul auditorium or 
127.10 	civic center connected thereto; nor shall any proceeds be expended for the acquisition or 
127.11 	betterment of the building known as the Lowry Medical Arts Annex. All bonds issued 
127.12 	under this act shall mature at any time or times within ten or, for bonds for public buildings 
127.13 	or parking structures, 30 years from the date of issue.

127.14 	EFFECTIVE DATE. This section is effective the day after the city council and the 
127.15 	chief clerical officer of the city of St. Paul have timely completed their compliance with 
127.16 	Minnesota Statutes, section 645.021, subdivisions 2 and 3.

127.17 	Sec. 25. Laws 2008, chapter 366, article 7, section 18, subdivision 3, is amended to 
127.18 	read:
127.19 		Subd. 3.Bonding authority. Cook County may issue bonds under Minnesota 
127.20 	Statutes, chapter 475, to pay capital and administrative expenses for the projects 
127.21 	authorized in subdivision 2, in an amount that does not exceed $14,000,000 $20,000,000. 
127.22 	An election to approve the bonds under Minnesota Statutes, section 475.58, is not 
127.23 	required. The issuance of bonds under this subdivision is not subject to Minnesota 
127.24 	Statutes, sections 275.60 and 275.61. The debt represented by the bonds is not included 
127.25 	in computing any debt limitation applicable to the county, and any levy of taxes under 
127.26 	Minnesota Statutes, section 475.61, to pay principal and interest on the bonds is not 
127.27 	subject to any levy limitation.

127.28 	EFFECTIVE DATE. This section is effective the day after the governing body 
127.29 	of Cook County and its chief clerical officer comply with Minnesota Statutes, section 
127.30 	645.021, subdivisions 2 and 3.

127.31 	Sec. 26. ST. PAUL PORT AUTHORITY CREDIT.
 128.1 	Notwithstanding Minnesota Statutes, section 474A.061, subdivision 4, the 
128.2 	commissioner of finance shall apply the $31,800 deposit paid in 2008 for a proposed issue 
128.3 	of $1,590,000 in tax exempt bonds by the St. Paul Port Authority for District Cooling 
128.4 	St. Paul, Inc. to an application for an allocation of tax exempt bonds by the St. Paul Port 
128.5 	Authority for the same project.

128.6 	EFFECTIVE DATE. This section is effective the day following final enactment 
128.7 	and expires January 1, 2011.

128.8 	Sec. 27. TEMPORARY CARRYFORWARD EXTENSION.
 128.9 	Notwithstanding Minnesota Statutes, section 474A.04, subdivision 1a, bonding 
128.10 	authority allocated to an entitlement issuer in 2008, except the bonding authority allocated 
128.11 	in Laws 2008, chapter 366, article 5, section 38, or 2009, that an entitlement issuer carries 
128.12 	forward under federal tax law that is not permanently issued or for which the governing 
128.13 	body of the entitlement issuer has not enacted a resolution electing to use the authority for 
128.14 	mortgage credit certificates and has not provided a notice of issue to the commissioner of 
128.15 	finance before 4:30 p.m. on the last business day in December 2011 must be deducted 
128.16 	from the entitlement allocation for that entitlement issuer in 2012.

128.17 	Sec. 28. EFFECTIVE DATE.
 128.18 	Except where provided otherwise, this article is effective the day following final 
128.19 	enactment.

128.20 	ARTICLE 7
128.21 	DEPARTMENT INDIVIDUAL INCOME, CORPORATE FRANCHISE, 
128.22 	AND ESTATE TAXES

128.23 	Section 1. Minnesota Statutes 2008, section 289A.08, subdivision 3, is amended to 
128.24 	read:
128.25 		Subd. 3.Corporations. (a) A corporation that is subject to the state's jurisdiction to 
128.26 	tax under section 290.014, subdivision 5, must file a return, except that a foreign operating 
128.27 	corporation as defined in section 290.01, subdivision 6b, is not required to file a return.
128.28 	(b) Members of a unitary business that are required to file a combined report on one 
128.29 	return must designate a member of the unitary business to be responsible for tax matters, 
128.30 	including the filing of returns, the payment of taxes, additions to tax, penalties, interest, 
128.31 	or any other payment, and for the receipt of refunds of taxes or interest paid in excess of 
128.32 	taxes lawfully due. The designated member must be a member of the unitary business that 
128.33 	is filing the single combined report and either:
129.1 	(1) a corporation that is subject to the taxes imposed by chapter 290; or
129.2 	(2) a corporation that is not subject to the taxes imposed by chapter 290:
129.3 	(i) Such corporation consents by filing the return as a designated member under this 
129.4 	clause to remit taxes, penalties, interest, or additions to tax due from the members of the 
129.5 	unitary business subject to tax, and receive refunds or other payments on behalf of other 
129.6 	members of the unitary business. The member designated under this clause is a "taxpayer" 
129.7 	for the purposes of this chapter and chapter 270C, and is liable for any liability imposed 
129.8 	on the unitary business under this chapter and chapter 290.
129.9 	(ii) If the state does not otherwise have the jurisdiction to tax the member designated 
129.10 	under this clause, consenting to be the designated member does not create the jurisdiction 
129.11 	to impose tax on the designated member, other than as described in item (i).
129.12 	(iii) The member designated under this clause must apply for a business tax account 
129.13 	identification number.
129.14 	(c) The commissioner shall adopt rules for the filing of one return on behalf of the 
129.15 	members of an affiliated group of corporations that are required to file a combined report. 
129.16 	All members of an affiliated group that are required to file a combined report must file one 
129.17 	return on behalf of the members of the group under rules adopted by the commissioner.
129.18 	(d) If a corporation claims on a return that it has paid tax in excess of the amount of 
129.19 	taxes lawfully due, that corporation must include on that return information necessary for 
129.20 	payment of the tax in excess of the amount lawfully due by electronic means.

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

129.23 	Sec. 2. Minnesota Statutes 2008, section 289A.12, is amended by adding a subdivision 
129.24 	to read:
129.25 		Subd. 16.Qualified intermediaries. The commissioner may by notice and demand 
129.26 	require a qualified intermediary to file a return relating to transactions for which the 
129.27 	intermediary acted to facilitate exchanges under section 1031 of the Internal Revenue 
129.28 	Code. The return must include the name, address, and state or federal tax identification 
129.29 	number or Social Security number of each of the parties to the exchange, information 
129.30 	relating to the property subject to the exchange, and any other information required by 
129.31 	the commissioner.

129.32 	EFFECTIVE DATE. This section is effective July 1, 2009, and applies to all 
129.33 	transactions whether facilitated on, before, or after that date.

130.1 	Sec. 3. Minnesota Statutes 2008, section 289A.18, subdivision 1, is amended to read:
130.2 		Subdivision 1. Individual income, fiduciary income, corporate franchise, and 
130.3 	entertainment taxes; partnership and S corporation returns; information returns; 
130.4 	mining company returns. The returns required to be made under sections 289A.08 and 
130.5 	289A.12 must be filed at the following times: 
130.6 	(1) returns made on the basis of the calendar year must be filed on April 15 following 
130.7 	the close of the calendar year, except that returns of corporations must be filed on March 
130.8 	15 following the close of the calendar year; 
130.9 	(2) returns made on the basis of the fiscal year must be filed on the 15th day of the 
130.10 	fourth month following the close of the fiscal year, except that returns of corporations 
130.11 	must be filed on the 15th day of the third month following the close of the fiscal year; 
130.12 	(3) returns for a fractional part of a year must be filed on the 15th day of the fourth 
130.13 	month following the end of the month in which falls the last day of the period for which 
130.14 	the return is made, except that the returns of corporations must be filed on the 15th day of 
130.15 	the third month following the end of the tax year; or, in the case of a corporation which is 
130.16 	a member of a unitary group, the return of the corporation must be filed on the 15th day of 
130.17 	the third month following the end of the tax year of the unitary group in which falls the 
130.18 	last day of the period for which the return is made; 
130.19 	(4) in the case of a final return of a decedent for a fractional part of a year, the return 
130.20 	must be filed on the 15th day of the fourth month following the close of the 12-month 
130.21 	period that began with the first day of that fractional part of a year; 
130.22 	(5) in the case of the return of a cooperative association, returns must be filed on or 
130.23 	before the 15th day of the ninth month following the close of the taxable year; 
130.24 	(6) if a corporation has been divested from a unitary group and files a return for 
130.25 	a fractional part of a year in which it was a member of a unitary business that files a 
130.26 	combined report under section 290.17, subdivision 4, the divested corporation's return 
130.27 	must be filed on the 15th day of the third month following the close of the common 
130.28 	accounting period that includes the fractional year; 
130.29 	(7) returns of entertainment entities must be filed on April 15 following the close of 
130.30 	the calendar year; 
130.31 	(8) returns required to be filed under section 289A.08, subdivision 4, must be filed 
130.32 	on the 15th day of the fifth month following the close of the taxable year; 
130.33 	(9) returns of mining companies must be filed on May 1 following the close of the 
130.34 	calendar year; and 
131.1 	(10) returns required to be filed with the commissioner under section 289A.12, 
131.2 	subdivision 2 or, 4 to 10, or 16 must be filed within 30 days after being demanded by 
131.3 	the commissioner. 

131.4 	EFFECTIVE DATE. This section is effective July 1, 2009.

131.5 	Sec. 4. Minnesota Statutes 2008, section 289A.19, subdivision 4, is amended to read:
131.6 		Subd. 4.Estate tax returns. When an extension to file the federal estate tax return 
131.7 	has been granted under section 6081 of the Internal Revenue Code, the time for filing 
131.8 	the estate tax return is extended for that period. If the estate requests an extension to 
131.9 	file an estate tax return within the time provided in section 289A.18, subdivision 3, the 
131.10 	commissioner shall extend the time for filing the estate tax return for six months. The time 
131.11 	for filing an estate tax return shall be extended for either six months or the amount of 
131.12 	time granted under section 6081 of the Internal Revenue Code to file the federal estate 
131.13 	tax return, whichever is longer.

131.14 	EFFECTIVE DATE. This section is effective for estates of decedents dying after 
131.15 	December 31, 2008.

131.16 	Sec. 5. Minnesota Statutes 2008, section 289A.31, subdivision 5, is amended to read:
131.17 		Subd. 5.Withholding tax, withholding from payments to out-of-state 
131.18 	contractors, and withholding by partnerships and small business corporations. (a) 
131.19 	Except as provided in paragraph (b), an employer or person withholding tax under section 
131.20 	290.92 or 290.923, subdivision 2, who fails to pay to or deposit with the commissioner a 
131.21 	sum or sums required by those sections to be deducted, withheld, and paid, is personally 
131.22 	and individually liable to the state for the sum or sums, and added penalties and interest, 
131.23 	and is not liable to another person for that payment or payments. The sum or sums 
131.24 	deducted and withheld under section 290.92, subdivision 2a or 3, or 290.923, subdivision 
131.25 	2, must be held as a special fund in trust for the state of Minnesota.
131.26 	(b) If the employer or person withholding tax under section 290.92 or 290.923, 
131.27 	subdivision 2, fails to deduct and withhold the tax in violation of those sections, and later 
131.28 	the taxes against which the tax may be credited are paid, the tax required to be deducted 
131.29 	and withheld will not be collected from the employer. This does not, however, relieve the 
131.30 	employer from liability for any penalties and interest otherwise applicable for failure to 
131.31 	deduct and withhold. This paragraph does not apply to an employer subject to paragraph 
131.32 	(g), or to a contractor required to withhold under section 290.92, subdivision 31.
132.1 	(c) Liability for payment of withholding taxes includes a responsible person or entity 
132.2 	described in the personal liability provisions of section 270C.56.
132.3 	(d) Liability for payment of withholding taxes includes a third party lender or surety 
132.4 	described in section 270C.59.
132.5 	(e) A partnership or S corporation required to withhold and remit tax under section 
132.6 	290.92, subdivisions 4b and 4c, is liable for payment of the tax to the commissioner, and a 
132.7 	person having control of or responsibility for the withholding of the tax or the filing of 
132.8 	returns due in connection with the tax is personally liable for the tax due.
132.9 	(f) A payor of sums required to be withheld under section 290.9705, subdivision 
132.10 	1, is liable to the state for the amount required to be deducted, and is not liable to an 
132.11 	out-of-state contractor for the amount of the payment.
132.12 	(g) If an employer fails to withhold tax from the wages of an employee when 
132.13 	required to do so under section 290.92, subdivision 2a, by reason of treating such 
132.14 	employee as not being an employee, then the liability for tax is equal to three percent of 
132.15 	the wages paid to the employee. The liability for tax of an employee is not affected by 
132.16 	the assessment or collection of tax under this paragraph. The employer is not entitled to 
132.17 	recover from the employee any tax determined under this paragraph.

132.18 	EFFECTIVE DATE. This section is effect for taxes required to be withheld after 
132.19 	June 30, 2009.

132.20 	Sec. 6. Minnesota Statutes 2008, section 289A.38, subdivision 7, is amended to read:
132.21 		Subd. 7. Federal tax changes. If the amount of income, items of tax preference, 
132.22 	deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for 
132.23 	any period, as reported to the Internal Revenue Service is changed or corrected by the 
132.24 	commissioner of Internal Revenue or other officer of the United States or other competent 
132.25 	authority, or where a renegotiation of a contract or subcontract with the United States 
132.26 	results in a change in income, items of tax preference, deductions, credits, or withholding 
132.27 	tax, or, in the case of estate tax, where there are adjustments to the taxable estate, the 
132.28 	taxpayer shall report the change or correction or renegotiation results in writing to the 
132.29 	commissioner. The report must be submitted within 180 days after the final determination 
132.30 	and must be in the form of either an amended Minnesota estate, withholding tax, corporate 
132.31 	franchise tax, or income tax return conceding the accuracy of the federal determination 
132.32 	or a letter detailing how the federal determination is incorrect or does not change the 
132.33 	Minnesota tax. An amended Minnesota income tax return must be accompanied by an 
132.34 	amended property tax refund return, if necessary. A taxpayer filing an amended federal 
133.1 	tax return must also file a copy of the amended return with the commissioner of revenue 
133.2 	within 180 days after filing the amended return. 

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

133.4 	Sec. 7. Minnesota Statutes 2008, section 290.01, subdivision 19b, is amended to read:
133.5 		Subd. 19b. Subtractions from federal taxable income. For individuals, estates, 
133.6 	and trusts, there shall be subtracted from federal taxable income: 
133.7 	(1) net interest income on obligations of any authority, commission, or 
133.8 	instrumentality of the United States to the extent includable in taxable income for federal 
133.9 	income tax purposes but exempt from state income tax under the laws of the United States; 
133.10 	(2) if included in federal taxable income, the amount of any overpayment of income 
133.11 	tax to Minnesota or to any other state, for any previous taxable year, whether the amount 
133.12 	is received as a refund or as a credit to another taxable year's income tax liability; 
133.13 	(3) the amount paid to others, less the amount used to claim the credit allowed under 
133.14 	section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten 
133.15 	to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and 
133.16 	transportation of each qualifying child in attending an elementary or secondary school 
133.17 	situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a 
133.18 	resident of this state may legally fulfill the state's compulsory attendance laws, which 
133.19 	is not operated for profit, and which adheres to the provisions of the Civil Rights Act 
133.20 	of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or 
133.21 	tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, 
133.22 	"textbooks" includes books and other instructional materials and equipment purchased 
133.23 	or leased for use in elementary and secondary schools in teaching only those subjects 
133.24 	legally and commonly taught in public elementary and secondary schools in this state. 
133.25 	Equipment expenses qualifying for deduction includes expenses as defined and limited in 
133.26 	section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional 
133.27 	books and materials used in the teaching of religious tenets, doctrines, or worship, the 
133.28 	purpose of which is to instill such tenets, doctrines, or worship, nor does it include books 
133.29 	or materials for, or transportation to, extracurricular activities including sporting events, 
133.30 	musical or dramatic events, speech activities, driver's education, or similar programs. No 
133.31 	deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or 
133.32 	the qualifying child's vehicle to provide such transportation for a qualifying child. For 
133.33 	purposes of the subtraction provided by this clause, "qualifying child" has the meaning 
133.34 	given in section 32(c)(3) of the Internal Revenue Code; 
133.35 	(4) income as provided under section 290.0802; 
134.1 	(5) to the extent included in federal adjusted gross income, income realized on 
134.2 	disposition of property exempt from tax under section 290.491; 
134.3 	(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) 
134.4 	of the Internal Revenue Code in determining federal taxable income by an individual 
134.5 	who does not itemize deductions for federal income tax purposes for the taxable year, an 
134.6 	amount equal to 50 percent of the excess of charitable contributions over $500 allowable 
134.7 	as a deduction for the taxable year under section 170(a) of the Internal Revenue Code and 
134.8 	under the provisions of Public Law 109-1; 
134.9 	(7) for taxable years beginning before January 1, 2008, the amount of the federal 
134.10 	small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code 
134.11 	which is included in gross income under section 87 of the Internal Revenue Code; 
134.12 	(8) for individuals who are allowed a federal foreign tax credit for taxes that do not 
134.13 	qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover 
134.14 	of subnational foreign taxes for the taxable year, but not to exceed the total subnational 
134.15 	foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, 
134.16 	"federal foreign tax credit" means the credit allowed under section 27 of the Internal 
134.17 	Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed 
134.18 	under section 904(c) of the Internal Revenue Code minus national level foreign taxes to 
134.19 	the extent they exceed the federal foreign tax credit; 
134.20 	(9) in each of the five tax years immediately following the tax year in which an 
134.21 	addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case 
134.22 	of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth 
134.23 	of the delayed depreciation. For purposes of this clause, "delayed depreciation" means 
134.24 	the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or 
134.25 	subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the 
134.26 	positive value of any net operating loss under section 172 of the Internal Revenue Code 
134.27 	generated for the tax year of the addition. The resulting delayed depreciation cannot be 
134.28 	less than zero; 
134.29 	(10) job opportunity building zone income as provided under section 469.316; 
134.30 	(11) to the extent included in federal taxable income, the amount of compensation 
134.31 	paid to members of the Minnesota National Guard or other reserve components of the 
134.32 	United States military for active service performed in Minnesota, excluding compensation 
134.33 	for services performed under the Active Guard Reserve (AGR) program. For purposes of 
134.34 	this clause, "active service" means (i) state active service as defined in section 190.05, 
134.35 	subdivision 5a, clause (1); (ii) federally funded state active service as defined in section 
134.36 	190.05, subdivision 5b; or (iii) federal active service as defined in section 190.05, 
135.1 	subdivision 5c, but "active service" excludes service performed in accordance with section 
135.2 	190.08, subdivision 3; 
135.3 	(12) to the extent included in federal taxable income, the amount of compensation 
135.4 	paid to Minnesota residents who are members of the armed forces of the United States or 
135.5 	United Nations for active duty performed outside Minnesota under United States Code, 
135.6 	title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of 
135.7 	the United Nations; 
135.8 	(13) an amount, not to exceed $10,000, equal to qualified expenses related to a 
135.9 	qualified donor's donation, while living, of one or more of the qualified donor's organs 
135.10 	to another person for human organ transplantation. For purposes of this clause, "organ" 
135.11 	means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; 
135.12 	"human organ transplantation" means the medical procedure by which transfer of a human 
135.13 	organ is made from the body of one person to the body of another person; "qualified 
135.14 	expenses" means unreimbursed expenses for both the individual and the qualified donor 
135.15 	for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses 
135.16 	may be subtracted under this clause only once; and "qualified donor" means the individual 
135.17 	or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An 
135.18 	individual may claim the subtraction in this clause for each instance of organ donation for 
135.19 	transplantation during the taxable year in which the qualified expenses occur; 
135.20 	(14) in each of the five tax years immediately following the tax year in which an 
135.21 	addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a 
135.22 	shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 
135.23 	addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the 
135.24 	case of a shareholder of a corporation that is an S corporation, minus the positive value of 
135.25 	any net operating loss under section 172 of the Internal Revenue Code generated for the 
135.26 	tax year of the addition. If the net operating loss exceeds the addition for the tax year, a 
135.27 	subtraction is not allowed under this clause; 
135.28 	(15) to the extent included in federal taxable income, compensation paid to a service 
135.29 	member as defined in United States Code, title 10, section 101(a)(5), for military service 
135.30 	as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2); 
135.31 	(16) international economic development zone income as provided under section 
135.32 	469.325; and
135.33 	(17) to the extent included in federal taxable income, the amount of national service 
135.34 	educational awards received from the National Service Trust under United States Code, 
135.35 	title 42, sections 12601 to 12604, for service in an approved Americorps National Service 
135.36 	program. 

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

136.2 	Sec. 8. Minnesota Statutes 2008, section 290.0671, subdivision 1, is amended to read:
136.3 		Subdivision 1.Credit allowed. (a) An individual is allowed a credit against the tax 
136.4 	imposed by this chapter equal to a percentage of earned income. To receive a credit, a 
136.5 	taxpayer must be eligible for a credit under section 32 of the Internal Revenue Code.
136.6 	(b) For individuals with no qualifying children, the credit equals 1.9125 percent of 
136.7 	the first $4,620 of earned income. The credit is reduced by 1.9125 percent of earned 
136.8 	income or adjusted gross income, whichever is greater, in excess of $5,770, but in no 
136.9 	case is the credit less than zero.
136.10 	(c) For individuals with one qualifying child, the credit equals 8.5 percent of the first 
136.11 	$6,920 of earned income and 8.5 percent of earned income over $12,080 but less than 
136.12 	$13,450. The credit is reduced by 5.73 percent of earned income or adjusted gross income, 
136.13 	whichever is greater, in excess of $15,080, but in no case is the credit less than zero.
136.14 	(d) For individuals with two or more qualifying children, the credit equals ten 
136.15 	percent of the first $9,720 of earned income and 20 percent of earned income over 
136.16 	$14,860 but less than $16,800. The credit is reduced by 10.3 percent of earned income 
136.17 	or adjusted gross income, whichever is greater, in excess of $17,890, but in no case is 
136.18 	the credit less than zero.
136.19 	(e) For a nonresident or part-year resident, the credit must be allocated based on the 
136.20 	percentage calculated under section 290.06, subdivision 2c, paragraph (e).
136.21 	(f) For a person who was a resident for the entire tax year and has earned income 
136.22 	not subject to tax under this chapter, including income excluded under section 290.01, 
136.23 	subdivision 19b, clause (10) or (16), the credit must be allocated based on the ratio of 
136.24 	federal adjusted gross income reduced by the earned income not subject to tax under 
136.25 	this chapter over federal adjusted gross income. For purposes of this paragraph, the 
136.26 	subtractions for military pay under section 290.01, subdivision 19b, clauses (11) and (12), 
136.27 	are not considered "earned income not subject to tax under this chapter."
136.28 	For the purposes of this paragraph, the exclusion of combat pay under section 112 
136.29 	of the Internal Revenue Code is not considered "earned income not subject to tax under 
136.30 	this chapter."
136.31 	(g) For tax years beginning after December 31, 2001, and before December 31, 
136.32 	2004, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in 
136.33 	paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by 
136.34 	$1,000 for married taxpayers filing joint returns.
137.1 	(h) For tax years beginning after December 31, 2004, and before December 31, 
137.2 	2007, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in 
137.3 	paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by 
137.4 	$2,000 for married taxpayers filing joint returns.
137.5 	(i)(g) For tax years beginning after December 31, 2007, and before December 
137.6 	31, 2010, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in 
137.7 	paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by 
137.8 	$3,000 for married taxpayers filing joint returns. For tax years beginning after December 
137.9 	31, 2008, the commissioner shall annually adjust the $3,000 is adjusted annually for 
137.10 	inflation under subdivision 7 by the percentage determined pursuant to the provisions of 
137.11 	section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B), the word 
137.12 	"2007" shall be substituted for the word "1992." For 2009, the commissioner shall then 
137.13 	determine the percent change from the 12 months ending on August 31, 2007, to the 12 
137.14 	months ending on August 31, 2008, and in each subsequent year, from the 12 months 
137.15 	ending on August 31, 2007, to the 12 months ending on August 31 of the year preceding 
137.16 	the taxable year. The earned income thresholds as adjusted for inflation must be rounded 
137.17 	to the nearest $10. If the amount ends in $5, the amount is rounded up to the nearest $10. 
137.18 	The determination of the commissioner under this subdivision is not a rule under the 
137.19 	Administrative Procedure Act.
137.20 	(j)(h) The commissioner shall construct tables showing the amount of the credit 
137.21 	at various income levels and make them available to taxpayers. The tables shall follow 
137.22 	the schedule contained in this subdivision, except that the commissioner may graduate 
137.23 	the transition between income brackets.

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

137.26 	Sec. 9. Minnesota Statutes 2008, section 290A.10, is amended to read:
137.27 	290A.10 PROOF OF TAXES PAID.
137.28 	Every claimant who files a claim for relief for property taxes payable shall include 
137.29 	with the claim a property tax statement or a reproduction thereof in a form deemed 
137.30 	satisfactory by the commissioner of revenue indicating that there are no delinquent 
137.31 	property taxes on the homestead. Indication on the property tax statement from the county 
137.32 	treasurer that there are no delinquent taxes on the homestead shall be sufficient proof. 
137.33 	Taxes included in a confession of judgment under section 277.23 or279.37 shall not 
138.1 	constitute delinquent taxes as long as the claimant is current on the payments required to 
138.2 	be made under section 277.23 or279.37.

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

138.4 	Sec. 10. Minnesota Statutes 2008, section 290A.14, is amended to read:
138.5 	290A.14 PROPERTY TAX STATEMENT.
138.6 	The county treasurer shall prepare and send a sufficient number of copies of the 
138.7 	property tax statement to the owner, and to the owner's escrow agent if the taxes are 
138.8 	paid via an escrow account, to enable the owner to comply with the filing requirements 
138.9 	of this chapter and to retain one copy as a record. The property tax statement, in a form 
138.10 	prescribed by the commissioner, shall indicate the manner in which the claimant may 
138.11 	claim relief from the state under both this chapter and chapter 290B, and the amount of the 
138.12 	tax for which the applicant may claim relief. The statement shall also indicate if there 
138.13 	are delinquent property taxes on the property in the preceding year. Taxes included in a 
138.14 	confession of judgment under section 277.23 or279.37 shall not constitute delinquent 
138.15 	taxes as long as the claimant is current on the payments required to be made under section
138.16 	277.23 or279.37.

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

138.18 	Sec. 11.  REPEALER.
 138.19 	Minnesota Rules, part 8009.3000, is repealed.

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

138.21 	ARTICLE 8
138.22 	DEPARTMENT SALES AND USE TAXES

138.23 	Section 1. Minnesota Statutes 2008, section 297A.70, subdivision 2, is amended to 
138.24 	read:
138.25 		Subd. 2.Sales to government. (a) All sales, except those listed in paragraph (b), 
138.26 	to the following governments and political subdivisions, or to the listed agencies or 
138.27 	instrumentalities of governments and political subdivisions, are exempt:
138.28 	(1) the United States and its agencies and instrumentalities;
138.29 	(2) school districts, the University of Minnesota, state universities, community 
138.30 	colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts 
139.1 	Education, and an instrumentality of a political subdivision that is accredited as an 
139.2 	optional/special function school by the North Central Association of Colleges and Schools;
139.3 	(3) hospitals and nursing homes owned and operated by political subdivisions of 
139.4 	the state of tangible personal property and taxable services used at or by hospitals and 
139.5 	nursing homes;
139.6 	(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip 
139.7 	operations provided for in section 473.4051; 
139.8 	(5) other states or political subdivisions of other states, if the sale would be exempt 
139.9 	from taxation if it occurred in that state; and
139.10 	(6) sales to public libraries, public library systems, multicounty, multitype library 
139.11 	systems as defined in section 134.001, county law libraries under chapter 134A, state 
139.12 	agency libraries, the state library under section 480.09, and the Legislative Reference 
139.13 	Library. 
139.14 	(b) This exemption does not apply to the sales of the following products and services:
139.15 	(1) building, construction, or reconstruction materials purchased by a contractor 
139.16 	or a subcontractor as a part of a lump-sum contract or similar type of contract with a 
139.17 	guaranteed maximum price covering both labor and materials for use in the construction, 
139.18 	alteration, or repair of a building or facility;
139.19 	(2) construction materials purchased by tax exempt entities or their contractors to 
139.20 	be used in constructing buildings or facilities which will not be used principally by the 
139.21 	tax exempt entities;
139.22 	(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11, 
139.23 	except for leases entered into by the United States or its agencies or instrumentalities; or 
139.24 	(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause 
139.25 	(2), and prepared food, candy, and soft drinks, and alcoholic beverages as defined in 
139.26 	section 297A.67, subdivision 2, except for lodging, prepared food, candy, and soft 
139.27 	drinks, and alcoholic beverages purchased directly by the United States or its agencies 
139.28 	or instrumentalities. 
139.29 	(c) As used in this subdivision, "school districts" means public school entities and 
139.30 	districts of every kind and nature organized under the laws of the state of Minnesota, and 
139.31 	any instrumentality of a school district, as defined in section 471.59. 

139.32 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
139.33 	June 30, 2009.

139.34 	Sec. 2. Minnesota Statutes 2008, section 297A.70, subdivision 4, is amended to read:
140.1 		Subd. 4.Sales to nonprofit groups. (a) All sales, except those listed in paragraph 
140.2 	(b), to the following "nonprofit organizations" are exempt:
140.3 	(1) a corporation, society, association, foundation, or institution organized and 
140.4 	operated exclusively for charitable, religious, or educational purposes if the item 
140.5 	purchased is used in the performance of charitable, religious, or educational functions; and
140.6 	(2) any senior citizen group or association of groups that:
140.7 	(i) in general limits membership to persons who are either age 55 or older, or 
140.8 	physically disabled; and
140.9 	(ii) is organized and operated exclusively for pleasure, recreation, and other 
140.10 	nonprofit purposes, not including housing, no part of the net earnings of which inures to 
140.11 	the benefit of any private shareholders; and
140.12 	(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.
140.13 	For purposes of this subdivision, charitable purpose includes the maintenance of a 
140.14 	cemetery owned by a religious organization.
140.15 	(b) This exemption does not apply to the following sales:
140.16 	(1) building, construction, or reconstruction materials purchased by a contractor 
140.17 	or a subcontractor as a part of a lump-sum contract or similar type of contract with a 
140.18 	guaranteed maximum price covering both labor and materials for use in the construction, 
140.19 	alteration, or repair of a building or facility;
140.20 	(2) construction materials purchased by tax-exempt entities or their contractors to 
140.21 	be used in constructing buildings or facilities that will not be used principally by the 
140.22 	tax-exempt entities; and
140.23 	(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause 
140.24 	(2), and prepared food, candy, and soft drinks, and alcoholic beverages as defined in 
140.25 	section 297A.67, subdivision 2, except wine purchased by an established religious 
140.26 	organization for sacramental purposes; and 
140.27 	(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except 
140.28 	as provided in paragraph (c). 
140.29 	(c) This exemption applies to the leasing of a motor vehicle as defined in section 
140.30 	297B.01, subdivision 11, only if the vehicle is: 
140.31 	(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a 
140.32 	passenger automobile, as defined in section 168.002, if the automobile is designed and 
140.33 	used for carrying more than nine persons including the driver; and 
140.34 	(2) intended to be used primarily to transport tangible personal property or 
140.35 	individuals, other than employees, to whom the organization provides service in 
140.36 	performing its charitable, religious, or educational purpose.
141.1 	(d) A limited liability company also qualifies for exemption under this subdivision if 
141.2 	(1) it consists of a sole member that would qualify for the exemption, and (2) the items 
141.3 	purchased qualify for the exemption.

141.4 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
141.5 	June 30, 2009, except that the amendment to paragraph (a) is effective the day following 
141.6 	final enactment.

141.7 	Sec. 3. Minnesota Statutes 2008, section 297A.992, subdivision 2, is amended to read:
141.8 		Subd. 2. Authorization; rates. (a) Notwithstanding section 297A.99, subdivisions 
141.9 	1, 2, and 3, or 477A.016, or any other law, the board of a county participating in a 
141.10 	joint powers agreement as specified in this section shall impose by resolution (1) a 
141.11 	transportation sales and use tax at a rate of one-quarter of one percent on retail sales and 
141.12 	uses taxable under this chapter, and (2) an excise tax of $20 per motor vehicle, as defined 
141.13 	in section 297B.01, subdivision 11, purchased or acquired from any person engaged in the 
141.14 	business of selling motor vehicles at retail, occurring within the jurisdiction of the taxing 
141.15 	authority. The taxes authorized are to fund transportation improvements as specified in 
141.16 	this section, including debt service on obligations issued to finance such improvements 
141.17 	pursuant to subdivision 7. 
141.18 	(b) The tax imposed under this section is not included in determining if the total tax 
141.19 	on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986, 
141.20 	chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article 
141.21 	12, section 87, or in determining a tax that may be imposed under any other limitations. 

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

141.23 	Sec. 4. Minnesota Statutes 2008, section 297A.993, subdivision 1, is amended to read:
141.24 		Subdivision 1. Authorization; rates. Notwithstanding section 297A.99, 
141.25 	subdivisions 1, 2, 3, 5, and 13, or 477A.016, or any other law, the board of a county outside 
141.26 	the metropolitan transportation area, as defined under section 297A.992, subdivision 1, or 
141.27 	more than one county outside the metropolitan transportation area acting under a joint 
141.28 	powers agreement, may impose (1) a transportation sales tax at a rate of up to one-half of 
141.29 	one percent on retail sales and uses taxable under this chapter, and (2) an excise tax of $20 
141.30 	per motor vehicle, as defined in section 297B.01, subdivision 11, purchased or acquired 
141.31 	from any person engaged in the business of selling motor vehicles at retail, occurring 
141.32 	within the jurisdiction of the taxing authority. The taxes imposed under this section are 
142.1 	subject to approval by a majority of the voters in each of the counties affected at a general 
142.2 	election who vote on the question to impose the taxes. 

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

142.4 	Sec. 5.  REPEALER.
 142.5 	Minnesota Statutes 2008, section 297A.67, subdivision 24, is repealed.

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

142.7 	ARTICLE 9
142.8 	DEPARTMENT SPECIAL TAXES

142.9 	Section 1. Minnesota Statutes 2008, section 287.04, is amended to read:
142.10 	287.04 EXEMPTIONS.
142.11 	The tax imposed by section 287.035 does not apply to:
142.12 	(a) A decree of marriage dissolution or an instrument made pursuant to it.
142.13 	(b) A mortgage given to correct a misdescription of the mortgaged property.
142.14 	(c) A mortgage or other instrument that adds additional security for the same debt 
142.15 	for which mortgage registry tax has been paid.
142.16 	(d) A contract for the conveyance of any interest in real property, including a 
142.17 	contract for deed.
142.18 	(e) A mortgage secured by real property subject to the minerals production tax of 
142.19 	sections 298.24 to 298.28.
142.20 	(f) The principal amount of a mortgage loan made under a low and moderate 
142.21 	income or other affordable housing program, if the mortgagee is a federal, state, or local 
142.22 	government agency.
142.23 	(g) Mortgages granted by fraternal benefit societies subject to section 64B.24.
142.24 	(h) A mortgage amendment or extension, as defined in section 287.01.
142.25 	(i) An agricultural mortgage if the proceeds of the loan secured by the mortgage are 
142.26 	used to acquire or improve real property classified under section 273.13, subdivision 23, 
142.27 	paragraph (a), or (b), clause (1), (2), or (3).
142.28 	(j) A mortgage on an armory building as set forth in section 193.147.

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

142.30 	Sec. 2. Minnesota Statutes 2008, section 287.05, is amended by adding a subdivision 
142.31 	to read:
143.1 		Subd. 9.Modification of mortgage. If a mortgage, or a document modifying a 
143.2 	mortgage, contains more than one statement that purports to limit: the enforcement of 
143.3 	the mortgage to a certain dollar amount; the tax imposed on the mortgage under this 
143.4 	chapter; or the effect of a modifying document, including but not limited to the statements 
143.5 	authorized in subdivisions 1, 1a, and 8, then the tax must be imposed based on the 
143.6 	combined effect, if any, of all the statements.

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

143.8 	Sec. 3. Minnesota Statutes 2008, section 287.22, is amended to read:
143.9 	287.22 EXEMPTIONS. 
143.10 	The tax imposed by section 287.21 does not apply to: 
143.11 	(1) an executory contract for the sale of real property under which the purchaser is 
143.12 	entitled to or does take possession of the real property, or any assignment or cancellation 
143.13 	of the contract; 
143.14 	(2) a mortgage or an amendment, assignment, extension, partial release, or 
143.15 	satisfaction of a mortgage; 
143.16 	(3) a will; 
143.17 	(4) a plat; 
143.18 	(5) a lease, amendment of lease, assignment of lease, or memorandum of lease; 
143.19 	(6) a deed, instrument, or writing in which the United States or any agency or 
143.20 	instrumentality thereof is the grantor, assignor, transferor, conveyor, grantee, or assignee; 
143.21 	(7) a deed for a cemetery lot or lots; 
143.22 	(8) a deed of distribution by a personal representative; 
143.23 	(9) a deed to or from a co-owner partitioning their undivided interest in the same 
143.24 	piece of real property; 
143.25 	(10) a deed or other instrument of conveyance issued pursuant to a permanent school 
143.26 	fund land exchange under section 92.121 and related laws; 
143.27 	(11) a referee's or sheriff's certificate of sale in a mortgage or lien foreclosure sale; 
143.28 	(12) a referee's, sheriff's, or certificate holder's certificate of redemption from a 
143.29 	mortgage or lien foreclosure sale issued under section 580.23 or other statute applicable to 
143.30 	redemption by an owner of real property; 
143.31 	(13) a deed, instrument, or writing which grants, creates, modifies, or terminates 
143.32 	an easement; 
144.1 	(14) a decree of marriage dissolution, as defined in section 287.01, subdivision 4, 
144.2 	or a deed or other instrument between the parties to the dissolution made pursuant to the 
144.3 	terms of the decree; and 
144.4 	(15) a transfer on death deed under section 507.071, and any affidavit or other 
144.5 	document to the extent it references a transfer on death deed. 

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

144.7 	Sec. 4. Minnesota Statutes 2008, section 287.25, is amended to read:
144.8 	287.25 PAYMENT OF TAX; STAMPS.
144.9 	Except for documents filed electronically, the county board shall determine the 
144.10 	method for collection of the tax imposed by section 287.21: 
144.11 	(1) The tax imposed by section 287.21 may be paid by the affixing of a documentary 
144.12 	stamp or stamps in the amount of the tax to the document or instrument with respect to 
144.13 	which the tax is paid, provided that the county board may permit the payment of the 
144.14 	tax without the affixing of the documentary stamps and in such cases shall direct the 
144.15 	treasurer to endorse a receipt for such tax upon the face of the document or instrument. 
144.16 	Documents submitted electronically must have the deed tax data affixed electronically and 
144.17 	the tax paid as provided in section 287.08. 
144.18 	(2) the tax imposed by section 287.21may must be paid in the manner prescribed by 
144.19 	section 287.08 relating to payment of mortgage registration tax, and the treasurer must 
144.20 	endorse a receipt for the tax on the face of the document or instrument. 

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

144.22 	Sec. 5. Minnesota Statutes 2008, section 295.56, is amended to read:
144.23 	295.56 TRANSFER OF ACCOUNTS RECEIVABLE.
144.24 	When a hospital or, surgical center,  health care provider, or wholesale drug 
144.25 	distributor transfers, assigns, or sells accounts receivable to another person who is subject 
144.26 	to tax under this chapter, liability for the tax on the accounts receivable is imposed on the 
144.27 	transferee, assignee, or buyer of the accounts receivable. No liability for these accounts 
144.28 	receivable is imposed on the transferor, assignor, or seller of the accounts receivable.

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

144.30 	Sec. 6. Minnesota Statutes 2008, section 295.57, subdivision 5, is amended to read:
145.1 		Subd. 5.Exemption for amounts paid for legend drugs. If a hospital, surgical 
145.2 	center, or health care provider cannot determine the actual cost or reimbursement of 
145.3 	legend drugs under the exemption provided in section 295.53, subdivision 1, paragraph 
145.4 	(a), clause (6) (5), the following method must be used: 
145.5 	A hospital, surgical center, or health care provider must determine the amount paid 
145.6 	for legend drugs used during the month or quarter and multiply that amount by a ratio, 
145.7 	the numerator of which is the total amount received for taxable patient services, and the 
145.8 	denominator of which is the total amount received for all patient services, including 
145.9 	amounts exempt under section 295.53, subdivision 1. The result represents the allowable 
145.10 	exemption for the monthly or quarterly cost of drugs. 

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

145.12 	Sec. 7. Minnesota Statutes 2008, section 296A.21, subdivision 1, is amended to read:
145.13 		Subdivision 1.General rules. (a) The commissioner shall make determinations, 
145.14 	corrections, assessments, and refunds with respect to taxes and fees under this chapter, 
145.15 	including interest, additions to taxes, and assessable penalties. Except as otherwise 
145.16 	provided in this section, the amount of taxes assessable must be assessed within 3-1/2 
145.17 	years after the date the return is filed. For purposes of this section, a tax return filed before 
145.18 	the last day prescribed by law for filing is considered to be filed on the last day.
145.19 	(b) A claim for a refund of an overpayment of state tax or fees must be filed within 
145.20 	3-1/2 years from the date prescribed for filing the return, plus any extension of time 
145.21 	granted for filing the return, but only if filed within the extended time; or the claim must 
145.22 	be filed within one year from the date of an order assessing tax or fees, or from the date of 
145.23 	a return filed by the commissioner, upon payment in full of the tax, fees, penalties, and 
145.24 	interest shown on the order or return, whichever period expires later.

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

145.26 	Sec. 8. Minnesota Statutes 2008, section 297E.02, subdivision 4, is amended to read:
145.27 		Subd. 4.Pull-tab and tipboard tax. (a) A tax is imposed on the sale of each deal 
145.28 	of pull-tabs and tipboards sold by a distributor. The rate of the tax is 1.7 percent of the 
145.29 	ideal gross of the pull-tab or tipboard deal. The sales tax imposed by chapter 297A on the 
145.30 	sale of the pull-tabs and tipboards by the distributor is imposed on the retail sales price 
145.31 	less the tax imposed by this subdivision. The retail sale of pull-tabs or tipboards by the 
145.32 	organization is exempt from taxes imposed by chapter 297A and is exempt from all local 
145.33 	taxes and license fees except a fee authorized under section 349.16, subdivision 8.
146.1 	(b) The liability for the tax imposed by this section is incurred when the pull-tabs 
146.2 	and tipboards are delivered by the distributor to the customer or to a common or contract 
146.3 	carrier for delivery to the customer, or when received by the customer's authorized 
146.4 	representative at the distributor's place of business, regardless of the distributor's method 
146.5 	of accounting or the terms of the sale.
146.6 	The tax imposed by this subdivision is imposed on all sales of pull-tabs and 
146.7 	tipboards, except the following:
146.8 	(1) sales to the governing body of an Indian tribal organization for use on an Indian 
146.9 	reservation;
146.10 	(2) sales to distributors licensed under the laws of another state or of a province of 
146.11 	Canada, as long as all statutory and regulatory requirements are met in the other state or 
146.12 	province;
146.13 	(3) sales of promotional tickets as defined in section 349.12; and
146.14 	(4) pull-tabs and tipboards sold to an organization that sells pull-tabs and tipboards 
146.15 	under the exemption from licensing in section 349.166, subdivision 2. A distributor shall 
146.16 	require an organization conducting exempt gambling to show proof of its exempt status 
146.17 	before making a tax-exempt sale of pull-tabs or tipboards to the organization. A distributor 
146.18 	shall identify, on all reports submitted to the commissioner, all sales of pull-tabs and 
146.19 	tipboards that are exempt from tax under this subdivision.
146.20 	(c) A distributor having a liability of $120,000 $10,000 or more during a fiscal year 
146.21 	ending June 30 must remit all liabilities in the subsequent calendar year by electronic 
146.22 	means.
146.23 	(d) Any customer who purchases deals of pull-tabs or tipboards from a distributor 
146.24 	may file an annual claim for a refund or credit of taxes paid pursuant to this subdivision 
146.25 	for unsold pull-tab and tipboard tickets. The claim must be filed with the commissioner on 
146.26 	a form prescribed by the commissioner by March 20 of the year following the calendar 
146.27 	year for which the refund is claimed. The refund must be filed as part of the customer's 
146.28 	February monthly return. The refund or credit is equal to 1.7 percent of the face value 
146.29 	of the unsold pull-tab or tipboard tickets, provided that the refund or credit will be 1.75 
146.30 	percent of the face value of the unsold pull-tab or tipboard tickets for claims for a refund 
146.31 	or credit of taxes filed on the February 2001 monthly return. The refund claimed will be 
146.32 	applied as a credit against tax owing under this chapter on the February monthly return. If 
146.33 	the refund claimed exceeds the tax owing on the February monthly return, that amount 
146.34 	will be refunded. The amount refunded will bear interest pursuant to section 270C.405
146.35 	from 90 days after the claim is filed.

147.1 	EFFECTIVE DATE. This section is effective for payments due in calendar year 
147.2 	2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, 
147.3 	2009, and in fiscal years thereafter.

147.4 	Sec. 9. Minnesota Statutes 2008, section 297E.06, is amended by adding a subdivision 
147.5 	to read:
147.6 		Subd. 1a.Required signatures. The gambling manager and the chief executive 
147.7 	officer of the organization, or their respective designees, and the person who completed 
147.8 	the tax return must sign the tax return. The organization shall inform the commissioner of 
147.9 	revenue in writing of the identity of the designees as soon as practicable in the form and 
147.10 	manner prescribed by the commissioner.

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

147.12 	Sec. 10. Minnesota Statutes 2008, section 297E.11, subdivision 1, is amended to read:
147.13 		Subdivision 1.General rule. Except as otherwise provided in this chapter, the 
147.14 	amount of taxes assessable must be assessed within 3-1/2 years after the return is filed, 
147.15 	whether or not the return is filed on or after the date prescribed. A return must not be 
147.16 	treated as filed until it is in processible form. A return is in processible form if it is filed 
147.17 	on a permitted form and contains sufficient data to identify the taxpayer and permit the 
147.18 	mathematical verification of the tax liability shown on the return. For purposes of this 
147.19 	section, a tax return filed before the last day prescribed by law for filing is considered to 
147.20 	be filed on the last day.

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

147.22 	Sec. 11. Minnesota Statutes 2008, section 297F.09, subdivision 7, is amended to read:
147.23 		Subd. 7.Electronic payment. A cigarette or tobacco products distributor having a 
147.24 	liability of $120,000$10,000 or more during a fiscal year ending June 30 must remit all 
147.25 	liabilities in the subsequent calendar year by electronic means.

147.26 	EFFECTIVE DATE. This section is effective for payments due in calendar year 
147.27 	2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, 
147.28 	2009, and in fiscal years thereafter.

147.29 	Sec. 12. Minnesota Statutes 2008, section 297G.09, subdivision 6, is amended to read:
148.1 		Subd. 6.Electronic payments. A licensed brewer, importer, or wholesaler having 
148.2 	an excise tax liability of $120,000$10,000 or more during a fiscal year ending June 30 
148.3 	must remit all excise tax liabilities in the subsequent calendar year by electronic means.

148.4 	EFFECTIVE DATE. This section is effective for payments due in calendar year 
148.5 	2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, 
148.6 	2009, and in fiscal years thereafter.

148.7 	Sec. 13. Minnesota Statutes 2008, section 297I.30, is amended by adding a subdivision 
148.8 	to read:
148.9 		Subd. 9.Extensions for filing returns. When, in the commissioner's judgment, 
148.10 	good cause exists, the commissioner may extend the time for filing returns for not more 
148.11 	than six months.

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

148.13 	Sec. 14. Minnesota Statutes 2008, section 297I.35, subdivision 2, is amended to read:
148.14 		Subd. 2.Electronic payments. If the aggregate amount of tax and surcharges 
148.15 	due under this chapter during a calendar year is equal to or exceeds $120,000 $10,000, 
148.16 	or if the taxpayer is required to make payment of any other tax to the commissioner by 
148.17 	electronic means, then all tax and surcharge payments in the subsequent calendar year 
148.18 	must be paid by electronic means.

148.19 	EFFECTIVE DATE. This section is effective for payments due in calendar year 
148.20 	2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, 
148.21 	2009, and in fiscal years thereafter.

148.22 	Sec. 15. Minnesota Statutes 2008, section 298.28, subdivision 11, is amended to read:
148.23 		Subd. 11.Remainder. (a) The proceeds of the tax imposed by section 298.24
148.24 	which remain after the distributions and payments in subdivisions 2 to 10a, as certified 
148.25 	by the commissioner of revenue, and paragraphs (b), (c), and (d), and (e) have been 
148.26 	made, together with interest earned on all money distributed under this section prior to 
148.27 	distribution, shall be divided between the taconite environmental protection fund created 
148.28 	in section 298.223 and the Douglas J. Johnson economic protection trust fund created in 
148.29 	section 298.292 as follows: Two-thirds to the taconite environmental protection fund and 
148.30 	one-third to the Douglas J. Johnson economic protection trust fund. The proceeds shall be 
148.31 	placed in the respective special accounts.
149.1 	(b) There shall be distributed to each city, town, and county the amount that it 
149.2 	received under section 294.26 in calendar year 1977; provided, however, that the amount 
149.3 	distributed in 1981 to the unorganized territory number 2 of Lake County and the town 
149.4 	of Beaver Bay based on the between-terminal trackage of Erie Mining Company will be 
149.5 	distributed in 1982 and subsequent years to the unorganized territory number 2 of Lake 
149.6 	County and the towns of Beaver Bay and Stony River based on the miles of track of Erie 
149.7 	Mining Company in each taxing district.
149.8 	(c) There shall be distributed to the Iron Range Resources and Rehabilitation Board 
149.9 	the amounts it received in 1977 under section 298.22. The amount distributed under 
149.10 	this paragraph shall be expended within or for the benefit of the taconite assistance area 
149.11 	defined in section 273.1341.
149.12 	(d) There shall be distributed to each school district 62 percent of the amount that it 
149.13 	received under section 294.26 in calendar year 1977. 
149.14 	(e) In 2003 only, $100,000 must be distributed to a township located in a taconite 
149.15 	tax relief area as defined in section 273.134, paragraph (a), that received $119,259 of 
149.16 	homestead and agricultural credit aid and $182,014 in local government aid in 2001.

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

149.18 	Sec. 16. Minnesota Statutes 2008, section 473.843, subdivision 3, is amended to read:
149.19 		Subd. 3.Payment of fee. On or before the 20th day of each month each operator 
149.20 	shall pay the fee due under this section for the previous month, using a form provided 
149.21 	by the commissioner of revenue.
149.22 	An operator having a fee of $120,000 $10,000 or more during a fiscal year ending 
149.23 	June 30 must pay all fees in the subsequent calendar year by electronic means.

149.24 	EFFECTIVE DATE. This section is effective for payments due in calendar year 
149.25 	2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, 
149.26 	2009, and in fiscal years thereafter.

149.27 	Sec. 17.  REPEALER.
 149.28 	Minnesota Statutes 2008, sections 287.26; 287.27, subdivision 1; and 298.28, 
149.29 	subdivisions 11a and 13, are repealed.

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

150.1 	ARTICLE 10
150.2 	DEPARTMENT PROPERTY TAXES AND AIDS

150.3 	Section 1. Minnesota Statutes 2008, section 273.1115, subdivision 2, is amended to 
150.4 	read:
150.5 		Subd. 2.Requirement. Real estate is entitled to valuation under this section only if 
150.6 	all of the following requirements are met:
150.7 	(1) the property is classified as class 1a, 1b, 2a, or 2b property under section 273.13, 
150.8 	subdivisions 22 and 23, or the property is classified as class 2e under section 273.13, 
150.9 	subdivision 23, and immediately before being classified as class 2e was classified as 
150.10 	class 1a or 1b;
150.11 	(2) the property is at least ten contiguous acres, when the application is filed under 
150.12 	subdivision 3;
150.13 	(3) the owner has filed a completed application for deferment as specified in 
150.14 	subdivision 3 with the county assessor in the county in which the property is located;
150.15 	(4) there are no delinquent taxes on the property; and
150.16 	(5) a covenant on the land restricts its use as provided in subdivision 3, clause (4).

150.17 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
150.18 	thereafter.

150.19 	Sec. 2. Minnesota Statutes 2008, section 273.1231, subdivision 8, is amended to read:
150.20 		Subd. 8.Utility property. "Utility property" means property appraised and 
150.21 	classified for tax purposes by order of the commissioner of revenue under sections 273.33
150.22 	to 273.3711.

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

150.24 	Sec. 3. Minnesota Statutes 2008, section 273.124, subdivision 3, is amended to read:
150.25 		Subd. 3.Cooperatives and charitable corporations; homestead and other 
150.26 	property. (a) When property is owned by a corporation or association organized under 
150.27 	chapter 308A or 308B, and each person who owns a share or shares in the corporation or 
150.28 	association is entitled to occupy a building on the property, or a unit within a building 
150.29 	on the property, the corporation or association may claim homestead treatment for each 
150.30 	dwelling, or for each unit in the case of a building containing several dwelling units, or for 
150.31 	the part of the value of the building occupied by a shareholder. Each building or unit must 
150.32 	be designated by legal description or number. The net tax capacity of each building or 
151.1 	unit that qualifies for assessment as a homestead under this subdivision must include not 
151.2 	more than one-half acre of land, if platted, nor more than 80 acres if unplatted. The net 
151.3 	tax capacity of the property is the sum of the net tax capacities of each of the respective 
151.4 	buildings or units comprising the property, including the net tax capacity of each unit's 
151.5 	or building's proportionate share of the land and any common buildings. To qualify for 
151.6 	the treatment provided by this subdivision, the corporation or association must be wholly 
151.7 	owned by persons having a right to occupy a building or unit owned by the corporation 
151.8 	or association. A charitable corporation organized under the laws of Minnesota and not 
151.9 	otherwise exempt thereunder with no outstanding stock qualifies for homestead treatment 
151.10 	with respect to member residents of the dwelling units who have purchased and hold 
151.11 	residential participation warrants entitling them to occupy the units.
151.12 	(b) To the extent provided in paragraph (a), a cooperative or corporation organized 
151.13 	under chapter 308A or 308B may obtain separate assessment and valuation, and separate 
151.14 	property tax statements for each residential homestead, residential nonhomestead, or for 
151.15 	each seasonal residential recreational building or unit not used for commercial purposes. 
151.16 	The appropriate class rates under section 273.13 shall be applicable as if each building or 
151.17 	unit were a separate tax parcel; provided, however, that the tax parcel which exists at the 
151.18 	time the cooperative or corporation makes application under this subdivision shall be a 
151.19 	single parcel for purposes of property taxes or the enforcement and collection thereof, 
151.20 	other than as provided in paragraph (a) or this paragraph.
151.21 	(c) A member of a corporation or association may initially obtain the separate 
151.22 	assessment and valuation and separate property tax statements, as provided in paragraph 
151.23 	(b), by applying to the assessor by June 30 of the assessment year.
151.24 	(d) When a building, or dwelling units within a building, no longer qualify under 
151.25 	paragraph (a) or (b), the current owner must notify the assessor within 30 days. Failure to 
151.26 	notify the assessor within 30 days shall result in the loss of benefits under paragraph (a) or 
151.27 	(b) for taxes payable in the year that the failure is discovered. For these purposes, "benefits 
151.28 	under paragraph (a) or (b)" means the difference in the net tax capacity of the building or 
151.29 	units which no longer qualify as computed under paragraph (a) or (b) and as computed 
151.30 	under the otherwise applicable law, times the local tax rate applicable to the building for 
151.31 	that taxes payable year. Upon discovery of a failure to notify, the assessor shall inform the 
151.32 	auditor of the difference in net tax capacity for the building or buildings in which units no 
151.33 	longer qualify, and the auditor shall calculate the benefits under paragraph (a) or (b). Such 
151.34 	amount, plus a penalty equal to 100 percent of that amount, shall then be demanded of the 
151.35 	building's owner. The property owner may appeal the county's determination by serving 
151.36 	copies of a petition for review with county officials as provided in section 278.01 and 
152.1 	filing a proof of service as provided in section 278.01 with the Minnesota Tax Court within 
152.2 	60 days of the date of the notice from the county. The appeal shall be governed by the Tax 
152.3 	Court procedures provided in chapter 271, for cases relating to the tax laws as defined in 
152.4 	section 271.01, subdivision 5; disregarding sections 273.125, subdivision 5, and 278.03, 
152.5 	but including section 278.05, subdivision 2. If the amount of the benefits under paragraph 
152.6 	(a) or (b) and penalty are not paid within 60 days, and if no appeal has been filed, the 
152.7 	county auditor shall certify the amount of the benefit and penalty to the succeeding year's 
152.8 	tax list to be collected as part of the property taxes on the affected property.

152.9 	Sec. 4. Minnesota Statutes 2008, section 273.124, subdivision 3a, is amended to read:
152.10 		Subd. 3a.Manufactured home park cooperative. When a manufactured home 
152.11 	park is owned by a corporation or association organized under chapter 308A or 308B, 
152.12 	and each person who owns a share or shares in the corporation or association is entitled 
152.13 	to occupy a lot within the park, the corporation or association may claim homestead 
152.14 	treatment for each lot occupied by a shareholder. Each lot must be designated by legal 
152.15 	description or number, and each lot is limited to not more than one-half acre of land for 
152.16 	each homestead. The manufactured home park shall be valued and assessed as if it were 
152.17 	homestead property within class 1 if all of the following criteria are met:
152.18 	(1) the occupant is using the property as a permanent residence;
152.19 	(2) the occupant or the cooperative association is paying the ad valorem property 
152.20 	taxes and any special assessments levied against the land and structure either directly, or 
152.21 	indirectly through dues to the corporation; and
152.22 	(3) the corporation or association organized under chapter 308A or 308B is wholly 
152.23 	owned by persons having a right to occupy a lot owned by the corporation or association.
152.24 	A charitable corporation, organized under the laws of Minnesota with no outstanding 
152.25 	stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt 
152.26 	status, qualifies for homestead treatment with respect to member residents of the 
152.27 	manufactured home park who hold residential participation warrants entitling them to 
152.28 	occupy a lot in the manufactured home park.

152.29 	Sec. 5. Minnesota Statutes 2008, section 273.124, subdivision 21, is amended to read:
152.30 		Subd. 21.Trust property; homestead. Real or personal property held by a trustee 
152.31 	under a trust is eligible for classification as homestead property if: the property satisfies 
152.32 	the requirements of paragraph (a), (b), (c), or (d).
152.33 	(1) (a) The grantor or surviving spouse of the grantor of the trust occupies and 
152.34 	uses the property as a homestead;.
153.1 	(2) (b) A relative or surviving relative of the grantor who meets the requirements 
153.2 	of subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1, 
153.3 	paragraph (d), in the case of agricultural property, occupies and uses the property as 
153.4 	a homestead;.
153.5 	(3) (c) A family farm corporation, joint farm venture, limited liability company, or 
153.6 	partnership operating a family farm in which the grantor or the grantor's surviving spouse 
153.7 	is a shareholder, member, or partner rents the property,; and, either (1) a shareholder, 
153.8 	member, or partner of the corporation, joint farm venture, limited liability company, or 
153.9 	partnership occupies and uses the property as a homestead,; or is actively farming (2) the 
153.10 	property is at least 40 acres, including undivided government lots and correctional 40's, and 
153.11 	a shareholder, member, or partner of the tenant-entity is actively farming the property on 
153.12 	behalf of the corporation, joint farm venture, limited liability company, or partnership; or.
153.13 	(4) (d) A person who has received homestead classification for property taxes 
153.14 	payable in 2000 on the basis of an unqualified legal right under the terms of the trust 
153.15 	agreement to occupy the property as that person's homestead and who continues to use the 
153.16 	property as a homestead; or, a person who received the homestead classification for taxes 
153.17 	payable in 2005 under clause (3)paragraph (c) who does not qualify under clause (3)
153.18 	paragraph (c)  for taxes payable in 2006 or thereafter but who continues to qualify under 
153.19 	clause (3)paragraph (c)  as it existed for taxes payable in 2005.
153.20 	For purposes of this subdivision, "grantor" is defined as the person creating or 
153.21 	establishing a testamentary, inter Vivos, revocable or irrevocable trust by written 
153.22 	instrument or through the exercise of a power of appointment.

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

153.24 	Sec. 6. Minnesota Statutes 2008, section 273.13, subdivision 23, is amended to read:
153.25 		Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural 
153.26 	land that is homesteaded, along with any class 2b rural vacant land that is contiguous to 
153.27 	the class 2a land under the same ownership. The market value of the house and garage 
153.28 	and immediately surrounding one acre of land has the same class rates as class 1a or 1b 
153.29 	property under subdivision 22. The value of the remaining land including improvements 
153.30 	up to the first tier valuation limit of agricultural homestead property has a net class rate 
153.31 	of 0.5 percent of market value. The remaining property over the first tier has a class rate 
153.32 	of one percent of market value. For purposes of this subdivision, the "first tier valuation 
153.33 	limit of agricultural homestead property" and "first tier" means the limit certified under 
153.34 	section 273.11, subdivision 23. 
154.1 	(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that 
154.2 	are agricultural land and buildings. Class 2a property has a net class rate of one percent of 
154.3 	market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a 
154.4 	property may contain property that would otherwise be classified as 2b, including but not 
154.5 	limited to sloughs, wooded wind shelters, acreage abutting ditches, and other similar land 
154.6 	impractical for the assessor to value separately from the rest of the property.
154.7 	An assessor may classify the part of a parcel described in this subdivision that is used 
154.8 	for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
154.9 	(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, 
154.10 	that are unplatted real estate, rural in character and not used for agricultural purposes, 
154.11 	including land used for growing trees for timber, lumber, and wood and wood products, 
154.12 	that is not improved with a structure. The presence of a minor, ancillary nonresidential 
154.13 	structure as defined by the commissioner of revenue does not disqualify the property from 
154.14 	classification under this paragraph. Any parcel of 20 acres or more improved with a 
154.15 	structure that is not a minor, ancillary nonresidential structure must be split-classified, and 
154.16 	ten acres must be assigned to the split parcel containing the structure. Class 2b property 
154.17 	has a net class rate of one percent of market value unless it is part of an agricultural 
154.18 	homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
154.19 	(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 
154.20 	acres statewide per taxpayer that is being managed under a forest management plan that 
154.21 	meets the requirements of chapter 290C, but is not enrolled in the sustainable forest 
154.22 	resource management incentive program. It has a class rate of .65 percent, provided 
154.23 	that the owner of the property must apply to the assessor to receive the reduced class in 
154.24 	order for the property to initially qualify for the reduced rate and provide the information 
154.25 	required by the assessor to verify that the property qualifies for the reduced rate. If the 
154.26 	assessor receives the application and information before May 1 in an assessment year, 
154.27 	the property qualifies beginning with that assessment year. If the assessor receives the 
154.28 	application and information after April 30 in an assessment year, the property may not 
154.29 	qualify until the next assessment year. The commissioner of natural resources must concur 
154.30 	that the land is qualified. The commissioner of natural resources shall annually provide 
154.31 	county assessors verification information on a timely basis. The presence of a minor, 
154.32 	ancillary nonresidential structure as defined by the commissioner of revenue does not 
154.33 	disqualify the property from classification under this paragraph.
154.34 	(e) Agricultural land as used in this section means contiguous acreage of ten 
154.35 	acres or more, used during the preceding year for agricultural purposes. "Agricultural 
154.36 	purposes" as used in this section means the raising, cultivation, drying, or storage of 
155.1 	agricultural products for sale, or the storage of machinery or equipment used in support 
155.2 	of agricultural production by the same farm entity. For a property to be classified as 
155.3 	agricultural based only on the drying or storage of agricultural products, the products 
155.4 	being dried or stored must have been produced by the same farm entity as the entity 
155.5 	operating the drying or storage facility. "Agricultural purposes" also includes enrollment 
155.6 	in the Reinvest in Minnesota program under sections 103F.501 to 103F.535 or the federal 
155.7 	Conservation Reserve Program as contained in Public Law 99-198 or a similar state 
155.8 	or federal conservation program if the property was classified as agricultural (i) under 
155.9 	this subdivision for the assessment year 2002 or (ii) in the year prior to its enrollment. 
155.10 	Agricultural classification shall not be based upon the market value of any residential 
155.11 	structures on the parcel or contiguous parcels under the same ownership. 
155.12 	(f) Real estate of less than ten acres, which is exclusively or intensively used for 
155.13 	raising or cultivating agricultural products, shall be considered as agricultural land. To 
155.14 	qualify under this paragraph, property that includes a residential structure must be used 
155.15 	intensively for one of the following purposes:
155.16 	(i) for drying or storage of grain or storage of machinery or equipment used to 
155.17 	support agricultural activities on other parcels of property operated by the same farming 
155.18 	entity;
155.19 	(ii) as a nursery, provided that only those acres used to produce nursery stock are 
155.20 	considered agricultural land;
155.21 	(iii) for livestock or poultry confinement, provided that land that is used only for 
155.22 	pasturing and grazing does not qualify; or
155.23 	(iv) for market farming; for purposes of this paragraph, "market farming" means the 
155.24 	cultivation of one or more fruits or vegetables or production of animal or other agricultural 
155.25 	products for sale to local markets by the farmer or an organization with which the farmer 
155.26 	is affiliated. 
155.27 	(g) Land shall be classified as agricultural even if all or a portion of the agricultural 
155.28 	use of that property is the leasing to, or use by another person for agricultural purposes. 
155.29 	Classification under this subdivision is not determinative for qualifying under 
155.30 	section 273.111. 
155.31 	(h) The property classification under this section supersedes, for property tax 
155.32 	purposes only, any locally administered agricultural policies or land use restrictions that 
155.33 	define minimum or maximum farm acreage. 
155.34 	(i) The term "agricultural products" as used in this subdivision includes production 
155.35 	for sale of: 
156.1 	(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 
156.2 	animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, 
156.3 	bees, and apiary products by the owner; 
156.4 	(2) fish bred for sale and consumption if the fish breeding occurs on land zoned 
156.5 	for agricultural use; 
156.6 	(3) the commercial boarding of horses if the boarding is done in conjunction with 
156.7 	raising or cultivating agricultural products as defined in clause (1); 
156.8 	(4) property which is owned and operated by nonprofit organizations used for 
156.9 	equestrian activities, excluding racing; 
156.10 	(5) game birds and waterfowl bred and raised for use on a shooting preserve licensed 
156.11 	under section 97A.115; 
156.12 	(6) insects primarily bred to be used as food for animals; 
156.13 	(7) trees, grown for sale as a crop, including short rotation woody crops, and not 
156.14 	sold for timber, lumber, wood, or wood products; and 
156.15 	(8) maple syrup taken from trees grown by a person licensed by the Minnesota 
156.16 	Department of Agriculture under chapter 28A as a food processor. 
156.17 	(j) If a parcel used for agricultural purposes is also used for commercial or industrial 
156.18 	purposes, including but not limited to: 
156.19 	(1) wholesale and retail sales; 
156.20 	(2) processing of raw agricultural products or other goods; 
156.21 	(3) warehousing or storage of processed goods; and 
156.22 	(4) office facilities for the support of the activities enumerated in clauses (1), (2), 
156.23 	and (3), 
156.24 	the assessor shall classify the part of the parcel used for agricultural purposes as class 
156.25 	1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its 
156.26 	use. The grading, sorting, and packaging of raw agricultural products for first sale is 
156.27 	considered an agricultural purpose. A greenhouse or other building where horticultural 
156.28 	or nursery products are grown that is also used for the conduct of retail sales must be 
156.29 	classified as agricultural if it is primarily used for the growing of horticultural or nursery 
156.30 	products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of 
156.31 	those products. Use of a greenhouse or building only for the display of already grown 
156.32 	horticultural or nursery products does not qualify as an agricultural purpose. 
156.33 	(k) The assessor shall determine and list separately on the records the market value 
156.34 	of the homestead dwelling and the one acre of land on which that dwelling is located. If 
156.35 	any farm buildings or structures are located on this homesteaded acre of land, their market 
156.36 	value shall not be included in this separate determination. 
157.1 	(k) (l) Class 2d airport landing area consists of a landing area or public access area 
157.2 	of a privately owned public use airport. It has a class rate of one percent of market value. 
157.3 	To qualify for classification under this paragraph, a privately owned public use airport 
157.4 	must be licensed as a public airport under section 360.018. For purposes of this paragraph, 
157.5 	"landing area" means that part of a privately owned public use airport properly cleared, 
157.6 	regularly maintained, and made available to the public for use by aircraft and includes 
157.7 	runways, taxiways, aprons, and sites upon which are situated landing or navigational aids. 
157.8 	A landing area also includes land underlying both the primary surface and the approach 
157.9 	surfaces that comply with all of the following: 
157.10 	(i) the land is properly cleared and regularly maintained for the primary purposes of 
157.11 	the landing, taking off, and taxiing of aircraft; but that portion of the land that contains 
157.12 	facilities for servicing, repair, or maintenance of aircraft is not included as a landing area; 
157.13 	(ii) the land is part of the airport property; and 
157.14 	(iii) the land is not used for commercial or residential purposes. 
157.15 	The land contained in a landing area under this paragraph must be described and certified 
157.16 	by the commissioner of transportation. The certification is effective until it is modified, 
157.17 	or until the airport or landing area no longer meets the requirements of this paragraph. 
157.18 	For purposes of this paragraph, "public access area" means property used as an aircraft 
157.19 	parking ramp, apron, or storage hangar, or an arrival and departure building in connection 
157.20 	with the airport. 
157.21 	(l) (m) Class 2e consists of land with a commercial aggregate deposit that is not 
157.22 	actively being mined and is not otherwise classified as class 2a or 2b, provided that the 
157.23 	land is not located in a county that has elected to opt-out of the aggregate preservation 
157.24 	program as provided in section 273.1115, subdivision 6. It has a class rate of one percent 
157.25 	of market value. To qualify for classification under this paragraph, the property must be 
157.26 	at least ten contiguous acres in size and the owner of the property must record with the 
157.27 	county recorder of the county in which the property is located an affidavit containing:
157.28 	(1) a legal description of the property;
157.29 	(2) a disclosure that the property contains a commercial aggregate deposit that is not 
157.30 	actively being mined but is present on the entire parcel enrolled;
157.31 	(3) documentation that the conditional use under the county or local zoning 
157.32 	ordinance of this property is for mining; and
157.33 	(4) documentation that a permit has been issued by the local unit of government 
157.34 	or the mining activity is allowed under local ordinance. The disclosure must include a 
157.35 	statement from a registered professional geologist, engineer, or soil scientist delineating 
157.36 	the deposit and certifying that it is a commercial aggregate deposit.
158.1 	For purposes of this section and section 273.1115, "commercial aggregate deposit" 
158.2 	means a deposit that will yield crushed stone or sand and gravel that is suitable for use 
158.3 	as a construction aggregate; and "actively mined" means the removal of top soil and 
158.4 	overburden in preparation for excavation or excavation of a commercial deposit.
158.5 	(m) (n) When any portion of the property under this subdivision or subdivision 22 
158.6 	begins to be actively mined, the owner must file a supplemental affidavit within 60 days 
158.7 	from the day any aggregate is removed stating the number of acres of the property that is 
158.8 	actively being mined. The acres actively being mined must be (1) valued and classified 
158.9 	under subdivision 24 in the next subsequent assessment year, and (2) removed from the 
158.10 	aggregate resource preservation property tax program under section 273.1115, if the 
158.11 	land was enrolled in that program. Copies of the original affidavit and all supplemental 
158.12 	affidavits must be filed with the county assessor, the local zoning administrator, and the 
158.13 	Department of Natural Resources, Division of Land and Minerals. A supplemental 
158.14 	affidavit must be filed each time a subsequent portion of the property is actively mined, 
158.15 	provided that the minimum acreage change is five acres, even if the actual mining activity 
158.16 	constitutes less than five acres.
158.17 	(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are 
158.18 	not rules, are exempt from the rulemaking provisions of chapter 14, and the provisions 
158.19 	in section 14.386 concerning exempt rules do not apply.

158.20 	EFFECTIVE DATE. The section is effective the day following final enactment.

158.21 	Sec. 7. Minnesota Statutes 2008, section 273.13, subdivision 25, is amended to read:
158.22 		Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more 
158.23 	units and used or held for use by the owner or by the tenants or lessees of the owner 
158.24 	as a residence for rental periods of 30 days or more, excluding property qualifying for 
158.25 	class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other 
158.26 	than hospitals exempt under section 272.02, and contiguous property used for hospital 
158.27 	purposes, without regard to whether the property has been platted or subdivided. The 
158.28 	market value of class 4a property has a class rate of 1.25 percent. 
158.29 	(b) Class 4b includes: 
158.30 	(1) residential real estate containing less than four units that does not qualify as class 
158.31 	4bb, other than seasonal residential recreational property; 
158.32 	(2) manufactured homes not classified under any other provision; 
158.33 	(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead 
158.34 	farm classified under subdivision 23, paragraph (b) containing two or three units; and 
159.1 	(4) unimproved property that is classified residential as determined under subdivision 
159.2 	33. 
159.3 	The market value of class 4b property has a class rate of 1.25 percent. 
159.4 	(c) Class 4bb includes: 
159.5 	(1) nonhomestead residential real estate containing one unit, other than seasonal 
159.6 	residential recreational property; and 
159.7 	(2) a single family dwelling, garage, and surrounding one acre of property on a 
159.8 	nonhomestead farm classified under subdivision 23, paragraph (b). 
159.9 	Class 4bb property has the same class rates as class 1a property under subdivision 22. 
159.10 	Property that has been classified as seasonal residential recreational property at 
159.11 	any time during which it has been owned by the current owner or spouse of the current 
159.12 	owner does not qualify for class 4bb. 
159.13 	(d) Class 4c property includes: 
159.14 	(1) except as provided in subdivision 22, paragraph (c), or subdivision 23, paragraph 
159.15 	(b), clause (1), real and personal property devoted to temporary and seasonal residential 
159.16 	occupancy for recreation purposes, including real and personal property devoted to 
159.17 	temporary and seasonal residential occupancy for recreation purposes and not devoted to 
159.18 	commercial purposes for more than 250 days in the year preceding the year of assessment. 
159.19 	For purposes of this clause, property is devoted to a commercial purpose on a specific 
159.20 	day if any portion of the property is used for residential occupancy, and a fee is charged 
159.21 	for residential occupancy. Class 4c property under this clause must contain three or 
159.22 	more rental units. A "rental unit" is defined as a cabin, condominium, townhouse, 
159.23 	sleeping room, or individual camping site equipped with water and electrical hookups 
159.24 	for recreational vehicles. Class 4c property under this clause must provide recreational 
159.25 	activities such as renting ice fishing houses, boats and motors, snowmobiles, downhill or 
159.26 	cross-country ski equipment; provide marina services, launch services, or guide services; 
159.27 	or sell bait and fishing tackle. A camping pad offered for rent by a property that otherwise 
159.28 	qualifies for class 4c under this clause is also class 4c under this clause regardless of the 
159.29 	term of the rental agreement, as long as the use of the camping pad does not exceed 250 
159.30 	days. In order for a property to be classified as class 4c, seasonal residential recreational 
159.31 	for commercial purposes under this clause, at least 40 percent of the annual gross lodging 
159.32 	receipts related to the property must be from business conducted during 90 consecutive 
159.33 	days and either (i) at least 60 percent of all paid bookings by lodging guests during the 
159.34 	year must be for periods of at least two consecutive nights; or (ii) at least 20 percent 
159.35 	of the annual gross receipts must be from charges for rental of fish houses, boats and 
159.36 	motors, snowmobiles, downhill or cross-country ski equipment, or charges for marina 
160.1 	services, launch services, and guide services, or the sale of bait and fishing tackle. For 
160.2 	purposes of this determination, a paid booking of five or more nights shall be counted as 
160.3 	two bookings. Class 4c property classified under this clause also includes commercial 
160.4 	use real property used exclusively for recreational purposes in conjunction with other 
160.5 	class 4c property classified under this clause and devoted to temporary and seasonal 
160.6 	residential occupancy for recreational purposes, up to a total of two acres, provided the 
160.7 	property is not devoted to commercial recreational use for more than 250 days in the year 
160.8 	preceding the year of assessment and is located within two miles of the class 4c property 
160.9 	with which it is used. Owners of real and personal property devoted to temporary and 
160.10 	seasonal residential occupancy for recreation purposes and all or a portion of which was 
160.11 	devoted to commercial purposes for not more than 250 days in the year preceding the 
160.12 	year of assessment desiring classification as class 4c, must submit a declaration to the 
160.13 	assessor designating the cabins or units occupied for 250 days or less in the year preceding 
160.14 	the year of assessment by January 15 of the assessment year. Those cabins or units and 
160.15 	a proportionate share of the land on which they are located must be designated class 
160.16 	4c under this clause  as otherwise provided. The remainder of the cabins or units and a 
160.17 	proportionate share of the land on which they are located will be designated as class 3a. 
160.18 	The owner of property desiring designation as class 4c property under this clause must 
160.19 	provide guest registers or other records demonstrating that the units for which class 4c 
160.20 	designation is sought were not occupied for more than 250 days in the year preceding the 
160.21 	assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar, 
160.22 	(3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility 
160.23 	operated on a commercial basis not directly related to temporary and seasonal residential 
160.24 	occupancy for recreation purposes does not qualify for class 4c; 
160.25 	(2) qualified property used as a golf course if: 
160.26 	(i) it is open to the public on a daily fee basis. It may charge membership fees or 
160.27 	dues, but a membership fee may not be required in order to use the property for golfing, 
160.28 	and its green fees for golfing must be comparable to green fees typically charged by 
160.29 	municipal courses; and 
160.30 	(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d). 
160.31 	A structure used as a clubhouse, restaurant, or place of refreshment in conjunction 
160.32 	with the golf course is classified as class 3a property; 
160.33 	(3) real property up to a maximum of three acres of land owned and used by a 
160.34 	nonprofit community service oriented organization and that is not used for residential 
160.35 	purposes on either a temporary or permanent basis, qualifies for class 4c provided that 
160.36 	it meets either of the following: 
161.1 	(i) the property is not used for a revenue-producing activity for more than six days 
161.2 	in the calendar year preceding the year of assessment; or 
161.3 	(ii) the organization makes annual charitable contributions and donations at least 
161.4 	equal to the property's previous year's property taxes and the property is allowed to be 
161.5 	used for public and community meetings or events for no charge, as appropriate to the 
161.6 	size of the facility. 
161.7 	For purposes of this clause, 
161.8 	(A) "charitable contributions and donations" has the same meaning as lawful 
161.9 	gambling purposes under section 349.12, subdivision 25, excluding those purposes 
161.10 	relating to the payment of taxes, assessments, fees, auditing costs, and utility payments; 
161.11 	(B) "property taxes" excludes the state general tax; 
161.12 	(C) a "nonprofit community service oriented organization" means any corporation, 
161.13 	society, association, foundation, or institution organized and operated exclusively for 
161.14 	charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 
161.15 	federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 
161.16 	Revenue Code; and 
161.17 	(D) "revenue-producing activities" shall include but not be limited to property or that 
161.18 	portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 
161.19 	liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 
161.20 	alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 
161.21 	insurance business, or office or other space leased or rented to a lessee who conducts a 
161.22 	for-profit enterprise on the premises. 
161.23 	Any portion of the property not qualifying under either item (i) which is used for 
161.24 	revenue-producing activities for more than six days in the calendar year preceding the 
161.25 	year of assessment shall be assessed as or (ii) is class 3a. The use of the property for social 
161.26 	events open exclusively to members and their guests for periods of less than 24 hours, 
161.27 	when an admission is not charged nor any revenues are received by the organization shall 
161.28 	not be considered a revenue-producing activity. 
161.29 	The organization shall maintain records of its charitable contributions and donations 
161.30 	and of public meetings and events held on the property and make them available upon 
161.31 	request any time to the assessor to ensure eligibility. An organization meeting the 
161.32 	requirement under item (ii) must file an application by May 1 with the assessor for 
161.33 	eligibility for the current year's assessment. The commissioner shall prescribe a uniform 
161.34 	application form and instructions; 
161.35 	(4) postsecondary student housing of not more than one acre of land that is owned by 
161.36 	a nonprofit corporation organized under chapter 317A and is used exclusively by a student 
162.1 	cooperative, sorority, or fraternity for on-campus housing or housing located within two 
162.2 	miles of the border of a college campus; 
162.3 	(5) manufactured home parks as defined in section 327.14, subdivision 3; 
162.4 	(6) real property that is actively and exclusively devoted to indoor fitness, health, 
162.5 	social, recreational, and related uses, is owned and operated by a not-for-profit corporation, 
162.6 	and is located within the metropolitan area as defined in section 473.121, subdivision 2; 
162.7 	(7) a leased or privately owned noncommercial aircraft storage hangar not exempt 
162.8 	under section 272.01, subdivision 2, and the land on which it is located, provided that: 
162.9 	(i) the land is on an airport owned or operated by a city, town, county, Metropolitan 
162.10 	Airports Commission, or group thereof; and 
162.11 	(ii) the land lease, or any ordinance or signed agreement restricting the use of the 
162.12 	leased premise, prohibits commercial activity performed at the hangar. 
162.13 	If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must 
162.14 	be filed by the new owner with the assessor of the county where the property is located 
162.15 	within 60 days of the sale; 
162.16 	(8) a privately owned noncommercial aircraft storage hangar not exempt under 
162.17 	section 272.01, subdivision 2, and the land on which it is located, provided that: 
162.18 	(i) the land abuts a public airport; and 
162.19 	(ii) the owner of the aircraft storage hangar provides the assessor with a signed 
162.20 	agreement restricting the use of the premises, prohibiting commercial use or activity 
162.21 	performed at the hangar; and 
162.22 	(9) residential real estate, a portion of which is used by the owner for homestead 
162.23 	purposes, and that is also a place of lodging, if all of the following criteria are met: 
162.24 	(i) rooms are provided for rent to transient guests that generally stay for periods 
162.25 	of 14 or fewer days; 
162.26 	(ii) meals are provided to persons who rent rooms, the cost of which is incorporated 
162.27 	in the basic room rate; 
162.28 	(iii) meals are not provided to the general public except for special events on fewer 
162.29 	than seven days in the calendar year preceding the year of the assessment; and 
162.30 	(iv) the owner is the operator of the property.
162.31 	The market value subject to the 4c classification under this clause is limited to five rental 
162.32 	units. Any rental units on the property in excess of five, must be valued and assessed as 
162.33 	class 3a. The portion of the property used for purposes of a homestead by the owner must 
162.34 	be classified as class 1a property under subdivision 22; and
162.35 	(10) real property up to a maximum of three acres and operated as a restaurant 
162.36 	as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake 
163.1 	as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B) 
163.2 	is either devoted to commercial purposes for not more than 250 consecutive days, or 
163.3 	receives at least 60 percent of its annual gross receipts from business conducted during 
163.4 	four consecutive months. Gross receipts from the sale of alcoholic beverages must be 
163.5 	included in determining the property's qualification under subitem (B). The property's 
163.6 	primary business must be as a restaurant and not as a bar. Gross receipts from gift shop 
163.7 	sales located on the premises must be excluded. Owners of real property desiring 4c 
163.8 	classification under this clause must submit an annual declaration to the assessor by 
163.9 	February 1 of the current assessment year, based on the property's relevant information for 
163.10 	the preceding assessment year. 
163.11 	Class 4c property has a class rate of 1.5 percent of market value, except that (i) each 
163.12 	parcel of seasonal residential recreational property not used for commercial purposes has 
163.13 	the same class rates as class 4bb property, (ii) manufactured home parks assessed under 
163.14 	clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal 
163.15 	residential recreational property has a class rate of one percent for the first $500,000 of 
163.16 	market value, and 1.25 percent for the remaining market value, (iv) the market value of 
163.17 	property described in clause (4) has a class rate of one percent, (v) the market value of 
163.18 	property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi) 
163.19 	that portion of the market value of property in clause (9) qualifying for class 4c property 
163.20 	has a class rate of 1.25 percent. 
163.21 	(e) Class 4d property is qualifying low-income rental housing certified to the assessor 
163.22 	by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion 
163.23 	of the units in the building qualify as low-income rental housing units as certified under 
163.24 	section 273.128, subdivision 3, only the proportion of qualifying units to the total number 
163.25 	of units in the building qualify for class 4d. The remaining portion of the building shall be 
163.26 	classified by the assessor based upon its use. Class 4d also includes the same proportion of 
163.27 	land as the qualifying low-income rental housing units are to the total units in the building. 
163.28 	For all properties qualifying as class 4d, the market value determined by the assessor must 
163.29 	be based on the normal approach to value using normal unrestricted rents. 
163.30 	Class 4d property has a class rate of 0.75 percent. 

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

163.32 	Sec. 8. Minnesota Statutes 2008, section 273.13, subdivision 33, is amended to read:
163.33 		Subd. 33.Classification of unimproved property. (a) All real property that is not 
163.34 	improved with a structure must be classified according to its current use.
164.1 	(b) Except as provided in subdivision 23, paragraph (c) or (d), real property that is 
164.2 	not improved with a structure and for which there is no identifiable current use must be 
164.3 	classified according to its highest and best use permitted under the local zoning ordinance. 
164.4 	If the ordinance permits more than one use, the land must be classified according to the 
164.5 	highest and best use permitted under the ordinance. If no such ordinance exists, the 
164.6 	assessor shall consider the most likely potential use of the unimproved land based upon 
164.7 	the use made of surrounding land or land in proximity to the unimproved land.

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

164.9 	Sec. 9. Minnesota Statutes 2008, section 273.33, subdivision 2, is amended to read:
164.10 		Subd. 2. Listing and assessment by commissioner. The personal property, 
164.11 	consisting of the pipeline system of mains, pipes, and equipment attached thereto, of 
164.12 	pipeline companies and others engaged in the operations or business of transporting natural 
164.13 	gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed with and 
164.14 	assessed by the commissioner of revenue and the values provided to the city or county 
164.15 	assessor by order. This subdivision shall not apply to the assessment of the products 
164.16 	transported through the pipelines nor to the lines of local commercial gas companies 
164.17 	engaged primarily in the business of distributing gas to consumers at retail nor to pipelines 
164.18 	used by the owner thereof to supply natural gas or other petroleum products exclusively 
164.19 	for such owner's own consumption and not for resale to others. If more than 85 percent 
164.20 	of the natural gas or other petroleum products actually transported over the pipeline is 
164.21 	used for the owner's own consumption and not for resale to others, then this subdivision 
164.22 	shall not apply; provided, however, that in that event, the pipeline shall be assessed in 
164.23 	proportion to the percentage of gas actually transported over such pipeline that is not used 
164.24 	for the owner's own consumption. On or before June 30 August 1, the commissioner shall 
164.25 	certify to the auditor of each county, the amount of such personal property assessment 
164.26 	against each company in each district in which such property is located. 

164.27 	EFFECTIVE DATE. This section is effective for assessment year 2009 and 
164.28 	thereafter.

164.29 	Sec. 10. Minnesota Statutes 2008, section 273.37, subdivision 2, is amended to read:
164.30 		Subd. 2. Listing and assessment by commissioner. Transmission lines of less 
164.31 	than 69 kv, transmission lines of 69 kv and above located in an unorganized township, 
164.32 	and distribution lines, and equipment attached thereto, having a fixed situs outside the 
164.33 	corporate limits of cities except distribution lines taxed as provided in sections 273.40 and 
165.1 	273.41, shall be listed with and assessed by the commissioner of revenue in the county 
165.2 	where situated and the values provided to the city or county assessor by order. The 
165.3 	commissioner shall assess such property at the percentage of market value fixed by law; 
165.4 	and, on or before June 30 August 1, shall certify to the auditor of each county in which 
165.5 	such property is located the amount of the assessment made against each company and 
165.6 	person owning such property. 

165.7 	EFFECTIVE DATE. This section is effective for assessment year 2009 and 
165.8 	thereafter.

165.9 	Sec. 11. Minnesota Statutes 2008, section 274.13, subdivision 2, is amended to read:
165.10 		Subd. 2.Special board; delegated duties. The board of equalization for any 
165.11 	county may appoint a special board of equalization and may delegate to it the powers and 
165.12 	duties in subdivision 1. The special board of equalization shall serve at the direction and 
165.13 	discretion of the appointing county board, subject to the restrictions imposed by law on 
165.14 	the appointing board. The appointing board may determine the number of members to be 
165.15 	appointed to the special board, the compensation and expenses to be paid, and the term of 
165.16 	office of each member. At least one member of the special board of equalization must be 
165.17 	an appraiser, realtor, or other person familiar with property valuations in the county. The 
165.18 	county auditor is a nonvoting member and serves as the recorder for the special board.
165.19 	The special board is subject to the quorum requirements for county boards and the training 
165.20 	requirements for county boards in section 274.135, subdivision 2.

165.21 	EFFECTIVE DATE. The section is effective the day following final enactment.

165.22 	Sec. 12. Minnesota Statutes 2008, section 274.135, subdivision 3, is amended to read:
165.23 		Subd. 3. Proof of compliance; transfer of duties. (a) Any county that 
165.24 	conducts county boards of appeal and equalization meetings must provide proof to the 
165.25 	commissioner by December 1, 2009, and each year thereafter, that it is in compliance 
165.26 	with the requirements of subdivision 2. Beginning in 2009, this notice must also verify 
165.27 	that there was a quorum of voting members at each meeting of the board of appeal and 
165.28 	equalization in the current year. A county that does not comply with these requirements 
165.29 	is deemed to have transferred its board of appeal and equalization powers to the special 
165.30 	board of equalization appointed pursuant to section 274.13, subdivision 2, beginning 
165.31 	with the following year's assessment and continuing unless the powers are reinstated 
165.32 	under paragraph (c). A county that does not comply with the requirements of subdivision 
166.1 	2 and has not appointed a special board of equalization shall appoint a special board of 
166.2 	equalization before the following year's assessment. 
166.3 	(b) The county shall notify the taxpayers when the board of appeal and equalization 
166.4 	for a county has been transferred to the special board of equalization under this subdivision 
166.5 	and, prior to the meeting time of the special board of equalization, the county shall make 
166.6 	available to those taxpayers a procedure for a review of the assessments, including, but 
166.7 	not limited to, open book meetings. This alternate review process must take place in 
166.8 	April and May. 
166.9 	(c) A county board whose powers are transferred to the special board of equalization 
166.10 	under this subdivision may be reinstated by resolution of the county board and upon proof 
166.11 	of compliance with the requirements of subdivision 2. The resolution and proofs must be 
166.12 	provided to the commissioner by December 1 in order to be effective for the following 
166.13 	year's assessment. 
166.14 	(d) If a person who was entitled to appeal to the county board of appeal and 
166.15 	equalization or to the county special board of equalization is not able to do so in a 
166.16 	particular year because the county board or special board did not meet the quorum and 
166.17 	training requirements in this section and section 274.13, or because the special board 
166.18 	was not appointed, that person may instead appeal to the commissioner of revenue, 
166.19 	provided that the appeal is received by the commissioner prior to August 1. The appeal 
166.20 	is not subject to either chapter 14 or section 270C.92. The commissioner must issue 
166.21 	an appropriate order to the county assessor in response to each timely appeal, either 
166.22 	upholding or changing the valuation or classification of the property. Prior to October 1 of 
166.23 	each year, the commissioner must charge and bill the county where the property is located 
166.24 	$500 for each tax parcel covered by an order issued under this paragraph in that year. 
166.25 	Amounts received by the commissioner under this paragraph must be deposited in the 
166.26 	state's general fund. If payment of a billed amount is not received by the commissioner 
166.27 	before December 1 of the year when billed, the commissioner must deduct that unpaid 
166.28 	amount from any state aid the commissioner would otherwise pay to the county under 
166.29 	chapter 477A in the next year. Late payments may either be returned to the county 
166.30 	uncashed and undeposited or may be accepted. If a late payment is accepted, the state aid 
166.31 	paid to the county under chapter 477A must be adjusted within 12 months to eliminate any 
166.32 	reduction that occurred because the payment was late. Amounts needed to make these 
166.33 	adjustments are included in the appropriation under section 477A.03, subdivision 2.

166.34 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
166.35 	thereafter.

167.1 	Sec. 13. Minnesota Statutes 2008, section 274.14, is amended to read:
167.2 	274.14 LENGTH OF SESSION; RECORD.
167.3 	The board may must meet on anyafter the second Friday in June on at least one 
167.4 	meeting day and may meet for up to ten consecutive meeting days in June, after the 
167.5 	second Friday in June. The actual meeting dates must be contained on the valuation 
167.6 	notices mailed to each property owner in the county as provided in section 273.121. For 
167.7 	this purpose, "meeting days" is defined as any day of the week excluding Sunday. At 
167.8 	the board's discretion, "meeting days" may include Saturday. No action taken by the 
167.9 	county board of review after June 30 is valid, except for corrections permitted in sections 
167.10 	273.01 and 274.01. The county auditor shall keep an accurate record of the proceedings 
167.11 	and orders of the board. The record must be published like other proceedings of county 
167.12 	commissioners. A copy of the published record must be sent to the commissioner of 
167.13 	revenue, with the abstract of assessment required by section 274.16.
167.14 	For counties that conduct either regular board of review meetings or open book 
167.15 	meetings, at least one of the meeting days must include a meeting that does not end 
167.16 	before 7:00 p.m. For counties that require taxpayer appointments for the board of review, 
167.17 	appointments must include some available times that extend until at least 7:00 p.m. The 
167.18 	county may have a Saturday meeting in lieu of, or in addition to, the extended meeting 
167.19 	times under this paragraph.

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

167.21 	Sec. 14. Minnesota Statutes 2008, section 274.175, is amended to read:
167.22 	274.175 VALUES FINALIZED.
167.23 	The assessments recorded by the county assessor and the county auditor under 
167.24 	sections 273.124, subdivision 9; 274.16; 274.17; or other law for real and personal 
167.25 	property are final on July 1 of the assessment year, except for property added to the 
167.26 	assessment rolls under section 272.02, subdivision 38, and assessments certified to the 
167.27 	auditor under sections 273.33, subdivision 2, and 273.37, subdivision 2, or deleted 
167.28 	because of tax forfeiture pursuant to chapter 281. No changes in value may be made 
167.29 	after July 1 of the assessment year, except for corrections permitted in sections 273.01
167.30 	and 274.01, or assessments certified to the auditor under sections 273.33, subdivision 2, 
167.31 	and 273.37, subdivision 2.  

167.32 	EFFECTIVE DATE. This section is effective for assessment year 2009 and 
167.33 	thereafter.

168.1 	Sec. 15. Minnesota Statutes 2008, section 290C.06, is amended to read:
168.2 	290C.06 CALCULATION OF AVERAGE ESTIMATED MARKET VALUE; 
168.3 	TIMBERLAND MANAGED FOREST LAND.
168.4 	The commissioner shall annually calculate a statewide average estimated market 
168.5 	value per acre for class 2b timberland2c managed forest land under section 273.13, 
168.6 	subdivision 23, paragraph (b).

168.7 	EFFECTIVE DATE. This section is effective for calculations made in 2010 and 
168.8 	thereafter.

168.9 	Sec. 16. Minnesota Statutes 2008, section 290C.07, is amended to read:
168.10 	290C.07 CALCULATION OF INCENTIVE PAYMENT.
168.11 	An approved claimant under the sustainable forest incentive program is eligible to 
168.12 	receive an annual payment. The payment shall equal the greater of: 
168.13 	(1) the difference between the property tax that would be paid on the land using the 
168.14 	previous year's statewide average total township tax rate and the a class rate for class 2b 
168.15 	timberland under section 273.13, subdivision 23, paragraph (b) of one percent, if the land 
168.16 	were valued at (i) the average statewide timberland managed forest land market value per 
168.17 	acre calculated under section 290C.06, and (ii) the average statewide timberland managed 
168.18 	forest land current use value per acre calculated under section 290C.02, subdivision 5; or 
168.19 	(2) two-thirds of the property tax amount determined by using the previous 
168.20 	year's statewide average total township tax rate, the estimated market value per acre as 
168.21 	calculated in section 290C.06, and the a class rate for 2b timberland under section 273.13, 
168.22 	subdivision 23, paragraph (b) of one percent, provided that the payment shall be no less 
168.23 	than $7 per acre for each acre enrolled in the sustainable forest incentive program. 

168.24 	EFFECTIVE DATE. This section is effective for calculations made in 2010 and 
168.25 	thereafter.

168.26 	Sec. 17. Minnesota Statutes 2008, section 477A.011, subdivision 34, is amended to 
168.27 	read:
168.28 		Subd. 34.City revenue need. (a) For a city with a population equal to or greater 
168.29 	than 2,500, "city revenue need" is the greater of 285 or the sum of (1) 5.0734098 times the 
168.30 	pre-1940 housing percentage; plus (2) 19.141678 times the population decline percentage; 
168.31 	plus (3) 2504.06334 times the road accidents factor; plus (4) 355.0547; minus (5) the 
168.32 	metropolitan area factor; minus (6) 49.10638 times the household size.
169.1 	(b) For a city with a population less than 2,500, "city revenue need" is the sum of 
169.2 	(1) 2.387 times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial 
169.3 	industrial percentage; plus (3) 3.16042 times the population decline percentage; plus (4) 
169.4 	1.206 times the transformed population; minus (5) 62.772.
169.5 	(c) For a city with a population of 2,500 or more and a population in one of the most 
169.6 	recently available five years that was less than 2,500, "city revenue need" is the sum of (1) 
169.7 	its city revenue need calculated under paragraph (a) multiplied by its transition factor; 
169.8 	plus (2) its city revenue need calculated under the formula in paragraph (b) multiplied 
169.9 	by the difference between one and its transition factor. For purposes of this paragraph, a 
169.10 	city's "transition factor" is equal to 0.2 multiplied by the number of years that the city's 
169.11 	population estimate has been 2,500 or more. This provision only applies for aids payable 
169.12 	in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500. It 
169.13 	applies to any city for aids payable in 2009 and thereafter. The city revenue need under 
169.14 	this paragraph may not be less than 285.
169.15 	(d) The city revenue need cannot be less than zero.
169.16 	(e) For calendar year 2005 and subsequent years, the city revenue need for a city, 
169.17 	as determined in paragraphs (a) to (d), is multiplied by the ratio of the annual implicit 
169.18 	price deflator for government consumption expenditures and gross investment for state 
169.19 	and local governments as prepared by the United States Department of Commerce, for 
169.20 	the most recently available year to the 2003 implicit price deflator for state and local 
169.21 	government purchases.

169.22 	EFFECTIVE DATE. This section is effective for aids payable in 2009 and 
169.23 	thereafter.

169.24 	Sec. 18. Minnesota Statutes 2008, section 477A.011, subdivision 42, is amended to 
169.25 	read:
169.26 		Subd. 42.City jobs base. (a) "City jobs base" for a city with a population of 5,000 or 
169.27 	more is equal to the product of (1) $25.20, (2) the number of jobs per capita in the city, and 
169.28 	(3) its population. For cities with a population less than 5,000, the city jobs base is equal 
169.29 	to zero. For a city receiving aid under subdivision 36, paragraph (l) (k), its city jobs base 
169.30 	is reduced by the lesser of 36 percent of the amount of aid received under that paragraph 
169.31 	or $1,000,000. No city's city jobs base may exceed $4,725,000 under this paragraph.
169.32 	(b) For calendar year 2010 and subsequent years, the city jobs base for a city, as 
169.33 	determined in paragraph (a), is multiplied by the ratio of the appropriation under section 
169.34 	477A.03, subdivision 2a, for the year in which the aid is paid to the appropriation under 
169.35 	that section for aids payable in 2009.
170.1 	(c) For purposes of this subdivision, "jobs per capita in the city" means (1) the 
170.2 	average annual number of employees in the city based on the data from the Quarterly 
170.3 	Census of Employment and Wages, as reported by the Department of Employment and 
170.4 	Economic Development, for the most recent calendar year available as of May 1, 2008, 
170.5 	divided by (2) the city's population for the same calendar year as the employment data. 
170.6 	The commissioner of the Department of Employment and Economic Development shall 
170.7 	certify to the city the average annual number of employees for each city by June 1, 2008. 
170.8 	A city may challenge an estimate under this paragraph by filing its specific objection, 
170.9 	including the names of employers that it feels may have misreported data, in writing with 
170.10 	the commissioner by June 20, 2008. The commissioner shall make every reasonable effort 
170.11 	to address the specific objection and adjust the data as necessary. The commissioner shall 
170.12 	certify the estimates of the annual employment to the commissioner of revenue by July 15, 
170.13 	2008, including any estimates still under objection.

170.14 	EFFECTIVE DATE. This section is effective for aids payable in 2009 and 
170.15 	thereafter.

170.16 	Sec. 19. Minnesota Statutes 2008, section 477A.013, subdivision 8, is amended to read:
170.17 		Subd. 8. City formula aid. (a) In calendar year 2009, the formula aid for a city 
170.18 	is equal to the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need 
170.19 	increase percentage multiplied by its unmet need. 
170.20 	(b) In calendar year 2010 and subsequent years, the formula aid for a city is equal 
170.21 	to the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need increase 
170.22 	percentage multiplied by the average of its unmet need for the most recently available 
170.23 	two years.
170.24 	No city may have a formula aid amount less than zero. The need increase percentage 
170.25 	must be the same for all cities. 
170.26 	The applicable need increase percentage must be calculated by the Department of 
170.27 	Revenue so that the total of the aid under subdivision 9 equals the total amount available 
170.28 	for aid under section 477A.03. For aids payable in 2009 only, all data used in calculating 
170.29 	aid to cities under sections 477A.011 to 477A.013 will be based on the data available for 
170.30 	calculating aid to cities for aids payable in 2008. For aids payable in 2010 and thereafter, 
170.31 	data used in calculating aids to cities under sections 477A.011 to 477A.013 shall be the 
170.32 	most recently available data as of January 1 in the year in which the aid is calculated
170.33 	except as provided in section 477A.011, subdivisions 3 and 35.

171.1 	EFFECTIVE DATE. This section is effective for assessment year 2009 and 
171.2 	thereafter.

171.3 	Sec. 20.  REPEALER.
 171.4 	Minnesota Rules, parts 8115.0200; 8115.0300; 8115.0400; 8115.0500; 8115.0600; 
171.5 	8115.1000; 8115.1100; 8115.1200; 8115.1300; 8115.1400; 8115.1500; 8115.1600; 
171.6 	8115.1700; 8115.1800; 8115.1900; 8115.2000; 8115.2100; 8115.2200; 8115.2300; 
171.7 	8115.2400; 8115.2500; 8115.2600; 8115.2700; 8115.2800; 8115.2900; 8115.3000; 
171.8 	8115.4000; 8115.4100; 8115.4200; 8115.4300; 8115.4400; 8115.4500; 8115.4600; 
171.9 	8115.4700; 8115.4800; 8115.4900; 8115.5000; 8115.5100; 8115.5200; 8115.5300; 
171.10 	8115.5400; 8115.5500; 8115.5600; 8115.5700; 8115.5800; 8115.5900; 8115.6000; 
171.11 	8115.6100; 8115.6200; 8115.6300; 8115.6400; and 8115.9900; are repealed.

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

171.13 	ARTICLE 11
171.14 	DEPARTMENT MISCELLANEOUS

171.15 	Section 1. Minnesota Statutes 2008, section 270B.14, subdivision 16, is amended to 
171.16 	read:
171.17 		Subd. 16.Disclosure to law enforcement authorities. Under circumstances 
171.18 	involving threat of death or physical injury to any individual, or harassment of a 
171.19 	Department of Revenue employee, the commissioner may disclose return information 
171.20 	to the extent necessary to apprise appropriate federal, state, or local law enforcement 
171.21 	authorities of such circumstances. For purposes of this subdivision, "harassment" is 
171.22 	purposeful conduct directed at an individual and causing an individual to feel frightened, 
171.23 	threatened, oppressed, persecuted, or intimidated. For purposes of harassment, the return 
171.24 	information that initially can be disclosed is limited to the name, address, and phone 
171.25 	number of the harassing individual, the name of the employee being harassed, and the 
171.26 	nature and circumstances of the harassment. Data disclosed under this subdivision are 
171.27 	classified under section 13.82 once they are received by the law enforcement authority.  

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

171.29 	Sec. 2. Minnesota Statutes 2008, section 270C.12, is amended by adding a subdivision 
171.30 	to read:
171.31 		Subd. 5.Duration. Notwithstanding the provisions of any statutes to the contrary, 
171.32 	including section 15.059, the coordinating committee as established by this section to 
172.1 	oversee and coordinate preparation of the microdata samples of income tax returns and 
172.2 	other information shall not expire.

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

172.4 	Sec. 3. Minnesota Statutes 2008, section 270C.446, subdivision 2, is amended to read:
172.5 		Subd. 2. Required and excluded tax preparers. (a) Subject to the limitations of 
172.6 	paragraph (b), the commissioner must publish lists of tax preparers as defined in section 
172.7 	289A.60, subdivision 13, paragraph (f), who have been convicted under section 289A.63
172.8 	for returns or claims prepared as a tax preparer or assessed penalties in excess of $1,000 
172.9 	under section 289A.60, subdivision 13, paragraph (a). 
172.10 	(b) For the purposes of this section, tax preparers are not subject to publication if: 
172.11 	(1) an administrative or court action contesting the penalty has been filed or served 
172.12 	and is unresolved at the time when notice would be given under subdivision 3; 
172.13 	(2) an appeal period to contest the penalty has not expired; or 
172.14 	(3) the commissioner has been notified that the tax preparer is deceased. 

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

172.16 	Sec. 4. Minnesota Statutes 2008, section 270C.446, subdivision 5, is amended to read:
172.17 		Subd. 5.Removal from list. The commissioner shall remove the name of a tax 
172.18 	preparer from the list of tax preparers published under this section:
172.19 	(1) when the commissioner determines that the name was included on the list in error;
172.20 	(2) within 90 days after the preparer has demonstrated to the commissioner that 
172.21 	the preparer fully paid all fines imposed, served any suspension, satisfied any sentence 
172.22 	imposed, and demonstrated to the satisfaction of the commissioner that the preparer has
172.23 	successfully completed any remedial actions required by the commissioner, the State 
172.24 	Board of Accountancy, or the Lawyers Board of Professional Responsibility; or
172.25 	(3) when the commissioner has been notified that the tax preparer is deceased.

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

172.27 	Sec. 5. Minnesota Statutes 2008, section 270C.56, subdivision 1, is amended to read:
172.28 		Subdivision 1. Liability imposed. A person who, either singly or jointly with 
172.29 	others, has the control of, supervision of, or responsibility for filing returns or reports, 
172.30 	paying taxes, or collecting or withholding and remitting taxes and who fails to do so, or a 
172.31 	person who is liable under any other law, is liable for the payment of taxes, penalties, and 
172.32 	interest arising under chapters 295, 296A, 297A, 297F, and 297G, or sections 256.9658, 
173.1 	290.92, and 297E.02, and, for the taxes listed in this subdivision, the applicable penalties 
173.2 	for nonpayment under section 289A.60 and interest on those taxes. 

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

173.4 	Sec. 6. Minnesota Statutes 2008, section 289A.41, is amended to read:
173.5 	289A.41 BANKRUPTCY; SUSPENSION OF TIME.
173.6 	The running of the period during which a tax must be assessed or collection 
173.7 	proceedings commenced is suspended during the period from the date of a filing of a 
173.8 	petition in bankruptcy until 30 days after either notice to the commissioner of revenue that 
173.9 	the bankruptcy proceedings have been closed or dismissed, or notice that the automatic 
173.10 	stay has been terminated or has expired, whichever occurs first.
173.11 	The suspension of the statute of limitations under this section applies to the person 
173.12 	the petition in bankruptcy is filed against and other persons who may also be wholly or 
173.13 	partially liable for the tax.

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

173.15 	ARTICLE 12
173.16 	MISCELLANEOUS

173.17 	Section 1. Minnesota Statutes 2008, section 270C.445, is amended to read:
173.18 	270C.445 TAX PREPARATION SERVICES.
173.19 		Subdivision 1.Scope. This section applies to a person who provides tax preparation 
173.20 	services., except:
173.21 	(1) a person who provides tax preparation services for fewer than ten clients in a 
173.22 	calendar year;
173.23 	(2) a person who provides tax preparation services only to immediate family 
173.24 	members. For the purposes of this section, "immediate family members" means a spouse, 
173.25 	parent, grandparent, child, or sibling;
173.26 	(3) an employee who prepares a tax return for an employer's business;
173.27 	(4) any fiduciary, or the regular employees of a fiduciary, while acting on behalf of 
173.28 	the fiduciary estate, testator, trustor, grantor, or beneficiaries of them; and
173.29 	(5) nonprofit organizations providing tax preparation services under the Internal 
173.30 	Revenue Service Volunteer Income Tax Assistance Program or Tax Counseling for the 
173.31 	Elderly Program.
174.1 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have 
174.2 	the meanings given.
174.3 	(b) "Client" means an individual for whom a tax preparer performs or agrees to 
174.4 	perform tax preparation services.
174.5 	(c) "Person" means an individual, corporation, partnership, limited liability 
174.6 	company, association, trustee, or other legal entity.
174.7 	(d) "Refund anticipation loan" means a loan or any other extension of credit, whether 
174.8 	provided by the tax preparer or another entity such as a financial institution, in anticipation 
174.9 	of, and whose payment is secured by, a client's federal or state income tax refund or both.
174.10 	(e) "Tax preparation services" means services provided for a fee or other 
174.11 	consideration to a client to:
174.12 	(1) assist with preparing or filing state or federal individual income tax returns;
174.13 	(2) assume final responsibility for completed work on an individual income tax 
174.14 	return on which preliminary work has been done by another; or
174.15 	(3) offer or facilitate the provision of refund anticipation loans and refund 
174.16 	anticipation checks.
174.17 	(f) "Tax preparer" or "preparer" means a person providing tax preparation services 
174.18 	subject to this section.
174.19 	(g) "Advertise" means to solicit business through any means or medium.
174.20 	(h) "Facilitate" means to individually or in conjunction or cooperation with another 
174.21 	person: 
174.22 	(1) accept an application for a refund anticipation loan; 
174.23 	(2) pay to a client the proceeds, through direct deposit, a negotiable instrument, or 
174.24 	any other means, of a refund anticipation loan; or 
174.25 	(3) offer, arrange, process, provide, or in any other manner act to allow the making 
174.26 	of, a refund anticipation loan.
174.27 	(i) "Refund anticipation check" means a negotiable instrument provided to a client 
174.28 	by the tax preparer or another person, which is issued from the proceeds of a taxpayer's 
174.29 	federal or state income tax refund or both and represents the net of the refund minus the tax 
174.30 	preparation fee and any other fees. A refund anticipation check includes a refund transfer.
174.31 		Subd. 3.Standards of conduct. No tax preparer shall:
174.32 	(1) without good cause fail to promptly, diligently, and without unreasonable delay 
174.33 	complete a client's tax return;
174.34 	(2) obtain the signature of a client to a tax return or authorizing document that 
174.35 	contains blank spaces to be filled in after it has been signed;
175.1 	(3) fail to sign a client's tax return when payment for services rendered has been 
175.2 	made;
175.3 	(4) fail or refuse to give a client a copy of any document requiring the client's 
175.4 	signature within a reasonable time after the client signs the document;
175.5 	(5) fail to retain for at least four years a copy of individual income tax returns;
175.6 	(6) fail to maintain a confidential relationship between themselves and their with
175.7 	clients or former clients;
175.8 	(7) fail to take commercially reasonable measures to safeguard a client's nonpublic 
175.9 	personal information;
175.10 	(8) make, authorize, publish, disseminate, circulate, or cause to make, either directly 
175.11 	or indirectly, any false, deceptive, or misleading statement or representation relating to or 
175.12 	in connection with the offering or provision of tax preparation services;
175.13 	(9) require a client to enter into a loan arrangement in order to complete a tax return;
175.14 	(10) claim credits or deductions on a client's tax return for which the tax preparer 
175.15 	knows or reasonably should know the taxpayer client does not qualify;
175.16 	(11) charge, offer to accept, or accept a fee based upon a percentage of an anticipated 
175.17 	refund for tax preparation services;
175.18 	(12) under any circumstances, withhold or fail to return to a client a document 
175.19 	provided by the client for use in preparing the client's tax return.;
175.20 	(13) establish an account in the preparer's name to receive a client's refund through 
175.21 	a direct deposit or any other instrument unless the client's name is also on the account, 
175.22 	except that a taxpayer may assign the portion of a refund representing the Minnesota 
175.23 	education credit available under section 290.0674 to a bank account without the client's 
175.24 	name, as provided under section 290.0679;
175.25 	(14) fail to act in the best interests of the client;
175.26 	(15) fail to safeguard and account for any money handled for the client;
175.27 	(16) fail to disclose all material facts of which the preparer has knowledge which 
175.28 	might reasonably affect the client's rights and interests;
175.29 	(17) violate any provision of section 332.37;
175.30 	(18) include any of the following in any document provided or signed in connection 
175.31 	with the provision of tax preparation services:
175.32 	(i) a hold harmless clause;
175.33 	(ii) a confession of judgment or a power of attorney to confess judgment against the 
175.34 	client or appear as the client in any judicial proceeding;
175.35 	(iii) a waiver of the right to a jury trial, if applicable, in any action brought by or 
175.36 	against a debtor;
176.1 	(iv) an assignment of or an order for payment of wages or other compensation for 
176.2 	services;
176.3 	(v) a provision in which the client agrees not to assert any claim or defense otherwise 
176.4 	available;
176.5 	(vi) a waiver of any provision of this section or a release of any obligation required 
176.6 	to be performed on the part of the tax preparer; or
176.7 	(vii) a waiver of the right to injunctive, declaratory, or other equitable relief or 
176.8 	relief on a class basis; or
176.9 	(19) if making, providing, or facilitating a refund anticipation loan, fail to provide all 
176.10 	disclosures required by the federal Truth in Lending Act, United States Code, title 15, in a 
176.11 	form that may be retained by the client.
176.12 		Subd. 3a.Written agreements required; refund anticipation loans and checks.
 176.13 	(a) All agreements to make, provide, or facilitate a refund anticipation loan or refund 
176.14 	anticipation check must be in writing. No agreement may include a provision that 
176.15 	directly or indirectly arranges for payment of or deduction from any portion of the refund 
176.16 	anticipation loan or refund anticipation check for check cashing, credit insurance, attorney 
176.17 	fees, or the collection of any debt owed to any party for any other good or service other 
176.18 	than a debt owed to the facilitator for the repayment of a refund anticipation loan and tax 
176.19 	preparation fees associated with the refund anticipation loan or refund anticipation check.
176.20 	(b) If a written agreement contains a mandatory arbitration clause, the tax preparer 
176.21 	must provide a separate written notice to the client that: 
176.22 	(1) arbitration is the exclusive means of dispute resolution for any dispute about the 
176.23 	written agreement;
176.24 	(2) the client has the right to affirmatively opt out of the arbitration clause within 30 
176.25 	days of entering into an agreement; and 
176.26 	(3) the client is not bound to arbitration if the claim or dispute involves a violation of 
176.27 	this section or the client invokes the remedies provided in subdivision 7.
176.28 	The tax preparer must advise the client, both orally and in writing, of the process by 
176.29 	which the client may exercise the right to opt out of the mandatory arbitration clause.
176.30 		Subd. 4.Required disclosures; refund anticipation loans. (a) IfBefore or at the 
176.31 	same time a tax preparer offers to make or facilitate a refund anticipation loan to the 
176.32 	client, the preparer must make the disclosures in this subdivision. The disclosures must 
176.33 	be made before or at the same time the preparer offers the refund anticipation loan to the 
176.34 	client. subdivision 4a. Before or at the same time a tax preparer offers or facilitates a 
176.35 	refund anticipation check or refund transfer, the tax preparer must make the disclosures 
176.36 	in subdivision 4b.
177.1 	(b) The disclosures must be provided to a client in a written notice on a single sheet 
177.2 	of paper, separate from any other document or writing.
177.3 	(c) All required statements must be in capital and small font type fonts, in a 
177.4 	minimum of 14-point type, with at least a double space between each statement.
177.5 	(d) The notice must be signed and dated by the tax preparer and the client.
177.6 	(e) All required disclosures, notices, and statements must be provided in the client's 
177.7 	primary language, if the tax preparer advertises in that language.
177.8 	(b) The tax preparer must provide to a client a written notice on a single sheet of 
177.9 	paper, separate from any other document or writing, containing:
177.10 	(1) a legend, centered at the top on the single sheet of paper, in bold, capital letters, 
177.11 	and in 28-point type stating "NOTICE";
177.12 	(2) the following verbatim statements:
177.13 	(i) "This is a loan. The annual percentage rate (APR), based on the estimated 
177.14 	payment period, is (fill in the estimated APR)."
177.15 	(ii) "Your refund will be used to repay the loan. As a result, the amount of your 
177.16 	refund will be reduced by (fill in appropriate dollar amount) for fees, interest, and other 
177.17 	charges."
177.18 	(iii) "You can get your refund in about two weeks if you file your return electronically 
177.19 	and have the Internal Revenue Service send your refund to your own bank account." and
177.20 	(3) if the client is subject to additional interest when a refund is delayed, the 
177.21 	following verbatim statement must also be included in the notice: "If you choose to take 
177.22 	this loan and your refund is delayed, you may have to pay additional interest."
177.23 	(c) All required statements must be in capital and small font type fonts, in a 
177.24 	minimum of 14-point type, with at least a double space between each line in the statement 
177.25 	and four spaces between each statement.
177.26 	(d) The notice must be signed and dated by the tax preparer and the client.
177.27 		Subd. 4a.Refund anticipation loan disclosures. The disclosure required under 
177.28 	subdivision 4 for a refund anticipation loan must contain:
177.29 	(1) a legend, centered at the top on the single sheet of paper, in bold, capital letters, 
177.30 	and in 28-point type stating "NOTICE";
177.31 	(2) the following verbatim statements:
177.32 	(i) "This is a loan. This is not your refund. The annual percentage rate (APR), based 
177.33 	on the estimated payment period, is (fill in the estimated APR).";
177.34 	(ii) "Your refund will be used to repay the loan. As a result, the amount of your 
177.35 	refund will be reduced by (fill in appropriate dollar amount) for fees, interest, and other 
177.36 	charges.";
178.1 	(iii) "You have the right to cancel this transaction by returning the loan check or the 
178.2 	amount of the loan in cash within one business day after you get the loan."; and
178.3 	(iv) "You can get your refund in about two weeks if you file your return electronically 
178.4 	and have the Internal Revenue Service send your refund to your own bank account."; and
178.5 	(3) if the client is subject to additional interest when a refund is delayed, the 
178.6 	following verbatim statement must also be included in the notice: "If you choose to take 
178.7 	this loan and your refund is delayed, you may have to pay."
178.8 		Subd. 4b.Refund anticipation check disclosures. (a) The disclosure required 
178.9 	under subdivision 4 for a refund anticipation check must contain:
178.10 	(1) a legend, centered at the top on the single sheet of paper, in bold, capital letters, 
178.11 	and in 28-point type stating "NOTICE";
178.12 	(2) the following verbatim statements:
178.13 	(i) "You do not have to purchase a refund anticipation check (RAC) to get your tax 
178.14 	refund.";
178.15 	(ii) "Generally the IRS can direct deposit your income tax refund to your personal 
178.16 	bank account within 8 to 15 days after the IRS accepts your tax return for processing.";
178.17 	(iii) "If you choose to purchase a RAC, your tax return funds will generally be 
178.18 	made available to you within 8 to 15 days.";
178.19 	(iv) "A RAC is not a loan.";
178.20 	(v) "The cost of the RAC is $ (fill in dollar amount).";
178.21 	(vi) "You can either pay for your RAC now or you can have it withheld from your 
178.22 	refund."; and
178.23 	(vii) "The cost of your tax return is not any more or any less if you purchase a RAC."
178.24 	(b) A tax preparer offering a refund anticipation check that uses a different product 
178.25 	name, including but not limited to refund transfer, must substitute the product name for 
178.26 	"RAC" in all the statements required under this subdivision.
178.27 		Subd. 5.Itemized bill required. A tax preparer must provide an itemized statement 
178.28 	of the charges for services, at least separately stating the charges for:
178.29 	(1) return preparation; and
178.30 	(2) providing or facilitating a refund anticipation loan.; and
178.31 	(3) each fee associated with the provision of a refund anticipation check.
178.32 		Subd. 5a.Nongame wildlife checkoff. A tax preparer must give written notice of 
178.33 	the option to contribute to the nongame wildlife management account in section 290.431
178.34 	to corporate clients that file an income tax return and to individual clients who file an 
178.35 	income tax return or property tax refund claim form. This notification must be included 
178.36 	with information sent to the client at the same time as the preliminary worksheets or other 
179.1 	documents used in preparing the client's return and must include a line for displaying 
179.2 	contributions.
179.3 		Subd. 5b.Right to rescind refund anticipation loan. (a) A client may rescind a 
179.4 	refund anticipation loan on or before the close of business on the next day of business 
179.5 	following execution of the loan agreement or receipt of the proceeds of the loan by (1) 
179.6 	providing written notification to the tax preparer of the rescission, and (2) either (i) 
179.7 	returning the original check issued for the loan, or (ii) tendering the amount of the loan 
179.8 	to the tax preparer.
179.9 	(b) The tax preparer may charge a fee for rescinding a refund anticipation loan 
179.10 	only if an account has been established at a financial institution to electronically receive 
179.11 	the refund and the financial institution has charged a fee to establish the account. The 
179.12 	allowable fee the tax preparer may charge the client rescinding the refund anticipation 
179.13 	loan may not exceed the fee charged to the tax preparer by the financial institution to 
179.14 	establish the account.
179.15 		Subd. 6.Enforcement; penalties. The commissioner may impose an administrative 
179.16 	penalty of not more than $1,000 per violation of subdivision 3, 3a, 4, or 5, or 5b, provided 
179.17 	that a penalty may not be imposed for any conduct that is also subject to the tax return 
179.18 	preparer penalties in section 289A.60, subdivision 13. The commissioner may terminate a 
179.19 	tax preparer's authority to transmit returns electronically to the state, if the commissioner 
179.20 	determines the tax preparer engaged in a pattern and practice of violating this section. 
179.21 	Imposition of a penalty under this subdivision is subject to the contested case procedure 
179.22 	under chapter 14. The commissioner shall collect the penalty in the same manner as the 
179.23 	income tax. Penalties imposed under this subdivision are public data.
179.24 		Subd. 6a.Exchange of data; State Board of Accountancy. The State Board of 
179.25 	Accountancy shall refer to the commissioner complaints it receives about tax preparers 
179.26 	who are not subject to the jurisdiction of the State Board of Accountancy and who are 
179.27 	alleged to have violated the provisions of subdivisions 3 to, 3a, 4, 4a, 4b, 5, and 5b.
179.28 		Subd. 6b.Exchange of data; Lawyers Board of Professional Responsibility. The 
179.29 	Lawyers Board of Professional Responsibility may refer to the commissioner complaints 
179.30 	it receives about tax preparers who are not subject to its jurisdiction and who are alleged 
179.31 	to have violated the provisions of subdivisions 3 to, 3a, 4, 4a, 4b, 5, and 5b.
179.32 		Subd. 6c.Exchange of data; commissioner. The commissioner shall refer 
179.33 	complaints about tax preparers who are alleged to have violated the provisions of 
179.34 	subdivisions 3 to, 3a, 4, 4a, 4b, 5, and 5b to:
179.35 	(1) the State Board of Accountancy, if the tax preparer is under its jurisdiction; and
180.1 	(2) the Lawyers Board of Professional Responsibility, if the tax preparer is under 
180.2 	its jurisdiction.
180.3 		Subd. 6d.Data private. Information exchanged on individuals under subdivisions 
180.4 	6a to 6c are private data under section 13.02, subdivision 12, until such time as a penalty 
180.5 	is imposed as provided in section 326A.08 or by the Lawyers Board of Professional 
180.6 	Responsibility.
180.7 		Subd. 7.Enforcement; civil actions. (a) Any violation of this section is an unfair, 
180.8 	deceptive, and unlawful trade practice within the meaning of section 8.31. An action taken 
180.9 	under section 8.31 is in the public interest.
180.10 	(b) A client may bring a civil action seeking redress for a violation of this section in 
180.11 	the conciliation or the district court of the county in which unlawful action is alleged to 
180.12 	have been committed or where the respondent resides or has a principal place of business.
180.13 	(c) A district court finding for the plaintiff must award:
180.14 	(1) actual damages, including;
180.15 	(2) incidental and consequential damages,;
180.16 	(3) statutory damages of twice the sum of: (i) the tax preparation fees; and (ii) if the 
180.17 	plaintiff violated subdivision 3a, 4, or 5b all interest and fees for a refund anticipation loan;
180.18 	(4) reasonable attorney fees,;
180.19 	(5) court costs,; and
180.20 	(6) any other equitable relief as the court considers appropriate.
180.21 		Subd. 8.Limited exemptions; enforcement provisions.  The provisions of this 
180.22 	section, except for subdivision subdivisions 3a, 4, and 5b, do not apply to:
180.23 	(1) an attorney admitted to practice under section 481.01;
180.24 	(2) a certified public accountant or other person who is subject to the jurisdiction of 
180.25 	the State Board of Accountancy;
180.26 	(3) an enrolled agent who has passed the special enrollment examination 
180.27 	administered by the Internal Revenue Service; or
180.28 	(4) any fiduciary, or the regular employees of a fiduciary, while acting on behalf of 
180.29 	the fiduciary estate, the testator, trustor, grantor, or beneficiaries of them;
180.30 	(5) a tax preparer who provides tax preparation services for fewer than six clients 
180.31 	in a calendar year;
180.32 	(6) tax preparation services to a spouse, parent, grandparent, child, or sibling of 
180.33 	the tax preparer; and
180.34 	(7) the preparation by an employee of the tax return of the employee's employer
181.1 	(4) anyone who provides, or assists in providing, tax preparation services within 
181.2 	the scope of duties as an employee or supervisor of a person who is exempt under this 
181.3 	subdivision.

181.4 	Sec. 2. Minnesota Statutes 2008, section 270C.56, subdivision 3, is amended to read:
181.5 		Subd. 3.Procedure for assessment; claims for refunds. (a) The commissioner 
181.6 	may assess liability for the taxes described in subdivision 1 against a person liable 
181.7 	under this section. The assessment may be based upon information available to the 
181.8 	commissioner. It must be made within the prescribed period of limitations for assessing 
181.9 	the underlying tax, or within one year after the date of an order assessing underlying tax, 
181.10 	whichever period expires later. An order assessing personal liability under this section is 
181.11 	reviewable under section 270C.35 and is appealable to Tax Court.
181.12 	(b) If the time for appealing the order has expired and a payment is made by or 
181.13 	collected from the person assessed on the order in excess of the amount lawfully due 
181.14 	from that person of any portion of the liability shown on the order, a claim for refund 
181.15 	may be made by that person within 120 days after any payment of the liability if the 
181.16 	payment is within 3-1/2 years after the date the order was issued. Claims for refund under 
181.17 	this paragraph are limited to the amount paid during the 120-day period. Any amounts 
181.18 	collected under paragraph (c) after a claim for refund is filed in order to satisfy the unpaid 
181.19 	balance of the assessment that is the subject of the claim shall be returned if the claim is 
181.20 	allowed. There is no claim for refund available under this paragraph if the assessment has 
181.21 	previously been the subject of an administrative or Tax Court appeal, or a denied claim 
181.22 	for refund. The taxpayer may contest denial of the refund as provided in the procedures 
181.23 	governing claims for refunds under section 289A.50, subdivision 7.
181.24 	(c) If a person has been assessed under this section for an amount for a given period 
181.25 	and the time for appeal has expired, regardless of whether an action contesting denial of a 
181.26 	claim for refund has been filed under paragraph (b), or there has been a final determination 
181.27 	that the person is liable, collection action is not stayed pursuant to section 270C.33, 
181.28 	subdivision 5, for that assessment or for subsequent assessments of additional amounts for 
181.29 	the same person for the same period and tax type.

181.30 	EFFECTIVE DATE. This section is effective for orders issued after the date of 
181.31 	final enactment.

181.32 	Sec. 3. Minnesota Statutes 2008, section 287.08, is amended to read:
181.33 	287.08 TAX, HOW PAYABLE; RECEIPTS. 
182.1 	(a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of 
182.2 	any county in this state in which the real property or some part is located at or before 
182.3 	the time of filing the mortgage for record. The treasurer shall endorse receipt on the 
182.4 	mortgage and the receipt is conclusive proof that the tax has been paid in the amount 
182.5 	stated and authorizes any county recorder or registrar of titles to record the mortgage. Its 
182.6 	form, in substance, shall be "registration tax hereon of ..................... dollars paid." If the 
182.7 	mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from 
182.8 	registration tax." In either case the receipt must be signed by the treasurer. In case the 
182.9 	treasurer is unable to determine whether a claim of exemption should be allowed, the tax 
182.10 	must be paid as in the case of a taxable mortgage. For documents submitted electronically, 
182.11 	the endorsements and tax amount shall be affixed electronically and no signature by the 
182.12 	treasurer will be required. The actual payment method must be arranged in advance 
182.13 	between the submitter and the receiving county.
182.14 	(b) The county treasurer may refund in whole or in part any mortgage registry tax 
182.15 	overpayment if a written application by the taxpayer is submitted to the county treasurer 
182.16 	within 3-1/2 years from the date of the overpayment. If the county has not issued a denial 
182.17 	of the application, the taxpayer may bring an action in Tax Court in the county in which 
182.18 	the tax was paid at any time after the expiration of six months from the time that the 
182.19 	application was submitted. A denial of refund may be appealed within 60 days from 
182.20 	the date of the denial by bringing an action in Tax Court in the county in which the tax 
182.21 	was paid. The action is commenced by the serving of a petition for relief on the county 
182.22 	treasurer, and by filing a copy with the court. The county attorney shall defend the action. 
182.23 	The county treasurer shall notify the treasurer of each county that has or would receive a 
182.24 	portion of the tax as paid.
182.25 	(c) If the county treasurer determines a refund should be paid, or if a refund is 
182.26 	ordered by the court, the county treasurer of each county that actually received a portion 
182.27 	of the tax shall immediately pay a proportionate share of three percent of the refund 
182.28 	using any available county funds. The county treasurer of each county that received, or 
182.29 	would have received, a portion of the tax shall also pay their county's proportionate share 
182.30 	of the remaining 97 percent of the court-ordered refund on or before the 20th day of the 
182.31 	following month using solely the mortgage registry tax funds that would be paid to the 
182.32 	commissioner of revenue on that date under section 287.12. If the funds on hand under 
182.33 	this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the 
182.34 	county treasurer of the county in which the action was brought shall file a claim with the 
182.35 	commissioner of revenue under section 16A.48 for the remaining portion of 97 percent of 
183.1 	the refund, and shall pay over the remaining portion upon receipt of a warrant from the 
183.2 	state issued pursuant to the claim.
183.3 	(d) When any mortgage covers real property located in more than one county in this 
183.4 	state the total tax must be paid to the treasurer of the county where the mortgage is first 
183.5 	presented for recording, and the payment must be receipted as provided in paragraph (a). 
183.6 	If the principal debt or obligation secured by such a multiple county mortgage exceeds 
183.7 	$1,000,000 $10,000,000, the nonstate portion of the tax must be divided and paid over by 
183.8 	the county treasurer receiving it, on or before the 20th day of each month after receipt, 
183.9 	to the county or counties entitled in the ratio that the market value of the real property 
183.10 	covered by the mortgage in each county bears to the market value of all the real property 
183.11 	in this state described in the mortgage. In making the division and payment the county 
183.12 	treasurer shall send a statement giving the description of the real property described in 
183.13 	the mortgage and the market value of the part located in each county. For this purpose, 
183.14 	the treasurer of any county may require the treasurer of any other county to certify to the 
183.15 	former the market valuation of any tract of real property in any mortgage.
183.16 	(e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The 
183.17 	mortgagee may undertake to collect and remit the tax on behalf of the mortgagor. If the 
183.18 	mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor, 
183.19 	the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the 
183.20 	amount of the tax collected for that purpose and the mortgagor is relieved of any further 
183.21 	obligation to pay the tax as to the amount collected by the mortgagee for this purpose.

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

183.23 	Sec. 4. Minnesota Statutes 2008, section 290.0678, as added by Laws 2009, chapter 
183.24 	3, section 1, is amended to read:
183.25 	290.0678 HEALTH INSURANCE PREMIUMS CREDIT.
183.26 		Subdivision 1.Credit allowed. (a) An individual is allowed a credit against the 
183.27 	tax due under this chapter equal to 20 percent of the health insurance premiums paid 
183.28 	from a plan under section 125 of the Internal Revenue Code. The credit is allowed only 
183.29 	for premiums paid after the individual has not had coverage under a health care plan 
183.30 	for at least one year, and is allowed only for the first 12 months in which an individual 
183.31 	participates in the Section 125 Plan.
183.32 	(b) For a nonresident or part-year resident, the credit determined under this section 
183.33 	must be allocated based on the percentage calculated under section 290.06, subdivision 
183.34 	2c, paragraph (e).
184.1 		Subd. 2.Limitations. The credit is allowed only for individuals with household 
184.2 	income for the taxable year between:
184.3 	(1) 275 percent and 300 percent of the federal poverty guidelines for the applicable 
184.4 	family size if the individual has dependents; or
184.5 	(2) 200 percent and 275 percent of the federal poverty guidelines for the applicable 
184.6 	family size if the individual has no dependents.
184.7 		Subd. 3.Definitions. For purposes of this section, "household income" means 
184.8 	income as defined in section 290.067, subdivision 2a, and "dependent" has the meaning 
184.9 	given in section 152 of the Internal Revenue Code.
184.10 		Subd. 4.Statement of premiums paid. Each Upon receiving a written request 
184.11 	from an employee, an employer must provide to each employee a statement that shows the 
184.12 	amount of health insurance premiums attributable to that employee paid from the Section 
184.13 	125 Plan for each month of the taxable year. The employer must provide the statement to 
184.14 	the employee at the same time as the annual written statement of wages paid as required 
184.15 	under section 289A.09, subdivision 2. that is included in the employee's first 12 months of 
184.16 	coverage under the Section 125 Plan, provided that the employee making the request did 
184.17 	not have coverage under a health care plan offered by the employer for the 12 months 
184.18 	preceding the date on which the employee began participating in the Section 125 Plan. An 
184.19 	employee may only make one request under this subdivision for each taxable year.
184.20 		Subd. 5.Transfer. Beginning in fiscal year 2010 and in each following fiscal year, 
184.21 	the amount necessary to pay the credits under this section is transferred from the health 
184.22 	care access fund to the general fund.

184.23 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
184.24 	December 31, 2008, for premiums paid in January 2009 and thereafter.

184.25 	Sec. 5. Minnesota Statutes 2008, section 297E.06, subdivision 4, is amended to read:
184.26 		Subd. 4.Annual audit, certified inventory, and cash count. (a) An organization 
184.27 	licensed under chapter 349 with gross receipts from lawful gambling of more than 
184.28 	$300,000 $500,000 in any year must have an annual financial audit of its lawful gambling 
184.29 	activities and funds for that year. An organization licensed under chapter 349 with gross 
184.30 	receipts from lawful gambling of more than $150,000 but not more than $300,000 in any 
184.31 	year must have an annual financial review of its lawful gambling activities and funds for 
184.32 	that year.
184.33 	(b) The commissioner may require a financial audit of the lawful gambling activities 
184.34 	and funds of an organization licensed under chapter 349, with gross receipts less than 
184.35 	$500,000 annually, when an organization has:
185.1 	(1) failed to timely file required gambling tax returns;
185.2 	(2) failed to timely pay the gambling tax or regulatory fee;
185.3 	(3) filed fraudulent gambling tax returns;
185.4 	(4) failed to take corrective actions required by the commissioner; or
185.5 	(5) failed to otherwise comply with chapter 297E.
185.6 	 (c) Audits and financial reviews under this subdivision must be performed by an 
185.7 	independent accountant licensed by the state of Minnesota.
185.8 	(d) An organization licensed under chapter 349 must perform an annual certified 
185.9 	inventory and cash count at the end of its fiscal year and submit the report to the 
185.10 	commissioner within 30 days after the end of its fiscal year. The report shall be on a form 
185.11 	prescribed by the commissioner.
185.12 	(b)(e) The commissioner of revenue shall prescribe standards for the audits and 
185.13 	financial review, certified inventory, and cash count reports required under this subdivision. 
185.14 	The standards may vary based on the gross receipts of the organization. The standards 
185.15 	must incorporate and be consistent with standards prescribed by the American Institute 
185.16 	of Certified Public Accountants. A complete, true, and correct copy of the audit audits, 
185.17 	certified inventory, and cash count report must be filed as prescribed by the commissioner.

185.18 	Sec. 6. Minnesota Statutes 2008, section 297H.06, subdivision 1, is amended to read:
185.19 		Subdivision 1.Certain surcharges or fees. The amount of a surcharge, fee, or 
185.20 	charge established pursuant to section 115A.919, 115A.921, 115A.923, 400.08, 473.811, 
185.21 	or473.843, or a service charge by a home rule charter or statutory city that owns and 
185.22 	operates a solid waste-to-energy resource recovery facility, is exempt from the solid waste 
185.23 	management tax. The exemption does not apply to the tax imposed on market price under 
185.24 	section 297H.02, subdivision 1, paragraphs (b) and (c), or section 297H.03, subdivision 
185.25 	1, paragraphs (b) and (c).

185.26 	EFFECTIVE DATE. This section is effective for taxes imposed after March 31, 
185.27 	2007.

185.28 	Sec. 7. Minnesota Statutes 2008, section 298.227, is amended to read:
185.29 	298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
185.30 	(a) An amount equal to that distributed pursuant to each taconite producer's taxable 
185.31 	production and qualifying sales under section 298.28, subdivision 9a, shall be held by 
185.32 	the Iron Range Resources and Rehabilitation Board in a separate taconite economic 
185.33 	development fund for each taconite and direct reduced ore producer. Money from the 
186.1 	fund for each producer shall be released by the commissioner after review by a joint 
186.2 	committee consisting of an equal number of representatives of the salaried employees and 
186.3 	the nonsalaried production and maintenance employees of that producer. The District 11 
186.4 	director of the United States Steelworkers of America, on advice of each local employee 
186.5 	president, shall select the employee members. In nonorganized operations, the employee 
186.6 	committee shall be elected by the nonsalaried production and maintenance employees. 
186.7 	The review must be completed no later than six months after the producer presents a 
186.8 	proposal for expenditure of the funds to the committee. The funds held pursuant to this 
186.9 	section may be released only for workforce development and associated public facility 
186.10 	improvement, or for acquisition of plant and stationary mining equipment and facilities 
186.11 	for the producer or for research and development in Minnesota on new mining, or 
186.12 	taconite, iron, or steel production technology, but only if the producer provides a matching 
186.13 	expenditure to be used for the same purpose of at least 50 percent of the distribution 
186.14 	based on 14.7 cents per ton beginning with distributions in 2002. Effective for proposals 
186.15 	for expenditures of money from the fund beginning May 26, 2007, the commissioner 
186.16 	may not release the funds before the next scheduled meeting of the board. If the board 
186.17 	rejects a proposed expenditure, the funds must be deposited in the Taconite Environmental 
186.18 	Protection Fund under sections 298.222 to 298.225. If a producer uses money which has 
186.19 	been released from the fund prior to May 26, 2007 to procure haulage trucks, mobile 
186.20 	equipment, or mining shovels, and the producer removes the piece of equipment from the 
186.21 	taconite tax relief area defined in section 273.134 within ten years from the date of receipt 
186.22 	of the money from the fund, a portion of the money granted from the fund must be repaid 
186.23 	to the taconite economic development fund. The portion of the money to be repaid is 100 
186.24 	percent of the grant if the equipment is removed from the taconite tax relief area within 12 
186.25 	months after receipt of the money from the fund, declining by ten percent for each of the 
186.26 	subsequent nine years during which the equipment remains within the taconite tax relief 
186.27 	area. If a taconite production facility is sold after operations at the facility had ceased, any 
186.28 	money remaining in the fund for the former producer may be released to the purchaser of 
186.29 	the facility on the terms otherwise applicable to the former producer under this section. If 
186.30 	a producer fails to provide matching funds for a proposed expenditure within six months 
186.31 	after the commissioner approves release of the funds, the funds are available for release to 
186.32 	another producer in proportion to the distribution provided and under the conditions of 
186.33 	this section. Any portion of the fund which is not released by the commissioner within 
186.34 	one year of its deposit in the fund shall be divided between the taconite environmental 
186.35 	protection fund created in section 298.223 and the Douglas J. Johnson economic protection 
186.36 	trust fund created in section 298.292 for placement in their respective special accounts. 
187.1 	Two-thirds of the unreleased funds shall be distributed to the taconite environmental 
187.2 	protection fund and one-third to the Douglas J. Johnson economic protection trust fund. 
187.3 	(b) Notwithstanding the requirements of paragraph (a), setting the amount of 
187.4 	distributions and the review process, an amount equal to ten cents per taxable ton of 
187.5 	production in 2007, for distribution in 2008 only, that would otherwise be distributed 
187.6 	under paragraph (a), may be used for a loan for the cost of construction of providing for
187.7 	a biomass energy facility. This amount must be deducted from the distribution under 
187.8 	paragraph (a) for which a matching expenditure by the producer is not required. The 
187.9 	granting of the loan is subject to approval by the Iron Range Resources and Rehabilitation 
187.10 	Board; interest must be payable on the loan at the rate prescribed in section 298.2213, 
187.11 	subdivision 3. Repayments of the loan and interest must be deposited in the northeast 
187.12 	Minnesota economic development fund established in section 298.2213. If a loan is not 
187.13 	made under this paragraph by July 1, 2009 2010, the amount that had been made available 
187.14 	for the loan under this paragraph must be transferred to the northeast Minnesota economic 
187.15 	development fund. Money distributed in 2008 to the fund established under this section 
187.16 	that exceeds ten cents per ton is available to qualifying producers under paragraph (a) 
187.17 	on a pro rata basis.
187.18 	If 2008 H.F. No. 1812 is enacted and includes a provision that amends this section 
187.19 	in a manner that is different from the amendment in this section, the amendment in this 
187.20 	section supersedes the amendment in 2008 H.F. No. 1812, notwithstanding section 645.26.

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

187.22 	Sec. 8. Minnesota Statutes 2008, section 298.28, subdivision 2, is amended to read:
187.23 		Subd. 2.City or town where quarried or produced. (a) 4.5 cents per gross ton of 
187.24 	merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus the amount 
187.25 	provided in paragraph (c), must be allocated to the city or town in the county in which 
187.26 	the lands from which taconite was mined or quarried were located or within which the 
187.27 	concentrate was produced. If the mining, quarrying, and concentration, or different steps 
187.28 	in either thereof are carried on in more than one taxing district, the commissioner shall 
187.29 	apportion equitably the proceeds of the part of the tax going to cities and towns among 
187.30 	such subdivisions upon the basis of attributing 4050 percent of the proceeds of the tax to 
187.31 	the operation of mining or quarrying the taconite, and the remainder to the concentrating 
187.32 	plant and to the processes of concentration, and with respect to each thereof giving due 
187.33 	consideration to the relative extent of such operations performed in each such taxing 
187.34 	district. The commissioner's order making such apportionment shall be subject to review 
188.1 	by the Tax Court at the instance of any of the interested taxing districts, in the same 
188.2 	manner as other orders of the commissioner.
188.3 	(b) Four cents per taxable ton shall be allocated to cities and organized townships 
188.4 	affected by mining because their boundaries are within three miles of a taconite mine pit 
188.5 	that has been actively mined in at least one of the prior three years. If a city or town is 
188.6 	located near more than one mine meeting these criteria, the city or town is eligible to 
188.7 	receive aid calculated from only the mine producing the largest taxable tonnage. When 
188.8 	more than one municipality qualifies for aid based on one company's production, the aid 
188.9 	must be apportioned among the municipalities in proportion to their populations. Of the 
188.10 	amounts distributed under this paragraph to each municipality, one-half must be used for 
188.11 	infrastructure improvement projects, and one-half must be used for projects in which two 
188.12 	or more municipalities cooperate. Each municipality that receives a distribution under this 
188.13 	paragraph must report annually to the Iron Range Resources and Rehabilitation Board and 
188.14 	the commissioner of Iron Range resources and rehabilitation on the projects involving 
188.15 	cooperation with other municipalities.
188.16 	(c) The amount that would have been computed for the current year under Minnesota 
188.17 	Statutes 2008, section 126C.21, subdivision 4, for a school district within which the 
188.18 	taconite was mined or quarried or within which the concentrate is produced is added to 
188.19 	the amount to be distributed to the cities and towns located within that school district as 
188.20 	provided in paragraph (a).

188.21 	EFFECTIVE DATE. This section is effective for distributions in 2010 and 
188.22 	thereafter.

188.23 	Sec. 9. Minnesota Statutes 2008, section 298.28, subdivision 4, is amended to read:
188.24 		Subd. 4. School districts. (a) 23.15 cents per taxable ton, plus the increase provided 
188.25 	in paragraph (d), less the amount that would have been computed under Minnesota 
188.26 	Statutes 2008, section 126C.21, subdivision 4, for the current year for that district, must be 
188.27 	allocated to qualifying school districts to be distributed, based upon the certification of the 
188.28 	commissioner of revenue, under paragraphs (b), (c), and (f). 
188.29 	(b)(i) 3.43 cents per taxable ton must be distributed to the school districts in which 
188.30 	the lands from which taconite was mined or quarried were located or within which the 
188.31 	concentrate was produced. The distribution must be based on the apportionment formula 
188.32 	prescribed in subdivision 2. 
188.33 	(ii) Four cents per taxable ton from each taconite facility must be distributed to 
188.34 	each affected school district for deposit in a fund dedicated to building maintenance 
188.35 	and repairs, as follows: 
189.1 	(1) proceeds from Keewatin Taconite or its successor are distributed to Independent 
189.2 	School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor 
189.3 	districts; 
189.4 	(2) proceeds from the Hibbing Taconite Company or its successor are distributed to 
189.5 	Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor 
189.6 	districts; 
189.7 	(3) proceeds from the Mittal Steel Company and Minntac or their successors are 
189.8 	distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia, 
189.9 	2711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts; 
189.10 	(4) proceeds from the Northshore Mining Company or its successor are distributed 
189.11 	to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior, 
189.12 	or their successor districts; and 
189.13 	(5) proceeds from United Taconite or its successor are distributed to Independent 
189.14 	School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their 
189.15 	successor districts. 
189.16 	Revenues that are required to be distributed to more than one district shall be 
189.17 	apportioned according to the number of pupil units identified in section 126C.05, 
189.18 	subdivision 1, enrolled in the second previous year. 
189.19 	(c)(i) 15.72 cents per taxable ton, less any amount distributed under paragraph (e), 
189.20 	shall be distributed to a group of school districts comprised of those school districts which 
189.21 	qualify as a tax relief area under section 273.134, paragraph (b), or in which there is a 
189.22 	qualifying municipality as defined by section 273.134, paragraph (a), in direct proportion 
189.23 	to school district indexes as follows: for each school district, its pupil units determined 
189.24 	under section 126C.05 for the prior school year shall be multiplied by the ratio of the 
189.25 	average adjusted net tax capacity per pupil unit for school districts receiving aid under 
189.26 	this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year 
189.27 	ending prior to distribution to the adjusted net tax capacity per pupil unit of the district. 
189.28 	Each district shall receive that portion of the distribution which its index bears to the sum 
189.29 	of the indices for all school districts that receive the distributions. 
189.30 	(ii) Notwithstanding clause (i), each school district that receives a distribution 
189.31 	under sections 298.018; 298.23 to 298.28, exclusive of any amount received under this 
189.32 	clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a tax on 
189.33 	severed mineral values after reduction for any portion distributed to cities and towns under 
189.34 	section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its levy 
189.35 	reduction under section 126C.48, subdivision 8, for the second year prior to the year of the 
189.36 	distribution shall receive a distribution equal to the difference; the amount necessary to 
190.1 	make this payment shall be derived from proportionate reductions in the initial distribution 
190.2 	to other school districts under clause (i). 
190.3 	(d) Any school district described in paragraph (c) where a levy increase pursuant to 
190.4 	section 126C.17, subdivision 9, was authorized by referendum for taxes payable in 2001, 
190.5 	shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 times the 
190.6 	pupil units identified in section 126C.05, subdivision 1, enrolled in the second previous 
190.7 	year or the 1983-1984 school year, whichever is greater, less the product of 1.8 percent 
190.8 	times the district's taxable net tax capacity in the second previous year. 
190.9 	If the total amount provided by paragraph (d) is insufficient to make the payments 
190.10 	herein required then the entitlement of $175 per pupil unit shall be reduced uniformly 
190.11 	so as not to exceed the funds available. Any amounts received by a qualifying school 
190.12 	district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general 
190.13 	education aid which the district receives pursuant to section 126C.13 or the permissible 
190.14 	levies of the district. Any amount remaining after the payments provided in this paragraph 
190.15 	shall be paid to the commissioner of Iron Range resources and rehabilitation who shall 
190.16 	deposit the same in the taconite environmental protection fund and the Douglas J. Johnson 
190.17 	economic protection trust fund as provided in subdivision 11. 
190.18 	Each district receiving money according to this paragraph shall reserve the lesser of 
190.19 	the amount received under this paragraph or $25 times the number of pupil units served 
190.20 	in the district. It may use the money for early childhood programs or for outcome-based 
190.21 	learning programs that enhance the academic quality of the district's curriculum. The 
190.22 	outcome-based learning programs must be approved by the commissioner of education. 
190.23 	(e) There shall be distributed to any school district the amount which the school 
190.24 	district was entitled to receive under section 298.32 in 1975. 
190.25 	(f) Four cents per taxable ton must be distributed to qualifying school districts 
190.26 	according to the distribution specified in paragraph (b), clause (ii), and two cents per 
190.27 	taxable ton must be distributed according to the distribution specified in paragraph 
190.28 	(c). These amounts are not subject to sections 126C.21, subdivision 4, and 126C.48, 
190.29 	subdivision 8. 

190.30 	EFFECTIVE DATE. This section is effective for distributions in 2010 and 
190.31 	thereafter.

190.32 	Sec. 10. Minnesota Statutes 2008, section 298.75, subdivision 2, is amended to read:
190.33 		Subd. 2.Tax imposed. (a) Except as provided in paragraph (e), a county that 
190.34 	imposes the aggregate production tax shall impose upon every operator a production tax 
190.35 	of 21.5 cents per cubic yard or 15 cents per ton of aggregate material excavated in the 
191.1 	county except that the county board may decide not to impose this tax if it determines 
191.2 	that in the previous year operators removed less than 20,000 tons or 14,000 cubic yards of 
191.3 	aggregate material from that county. The tax shall not be imposed on aggregate material 
191.4 	excavated in the county until the aggregate material is transported from the extraction site 
191.5 	or sold, whichever occurs first. When aggregate material is stored in a stockpile within the 
191.6 	state of Minnesota and a public highway, road or street is not used for transporting the 
191.7 	aggregate material, the tax shall not be imposed until either when the aggregate material 
191.8 	is sold, or when it is transported from the stockpile site, or when it is used from the 
191.9 	stockpile, whichever occurs first.
191.10 	(b) Except as provided in paragraph (e), a county that imposes the aggregate 
191.11 	production tax under paragraph (a) shall impose upon every importer a production tax 
191.12 	of 21.5 cents per cubic yard or 15 cents per ton of aggregate material imported into the 
191.13 	county. The tax shall be imposed when the aggregate material is imported from the 
191.14 	extraction site or sold. When imported aggregate material is stored in a stockpile within 
191.15 	the state of Minnesota and a public highway, road, or street is not used for transporting 
191.16 	the aggregate material, the tax shall be imposed either when the aggregate material is 
191.17 	sold, when it is transported from the stockpile site, or when it is used from the stockpile, 
191.18 	whichever occurs first. The tax shall be imposed on an importer when the aggregate 
191.19 	material is imported into the county that imposes the tax.
191.20 	(c) If the aggregate material is transported directly from the extraction site to a 
191.21 	waterway, railway, or another mode of transportation other than a highway, road or street, 
191.22 	the tax imposed by this section shall be apportioned equally between the county where the 
191.23 	aggregate material is extracted and the county to which the aggregate material is originally 
191.24 	transported. If that destination is not located in Minnesota, then the county where the 
191.25 	aggregate material was extracted shall receive all of the proceeds of the tax.
191.26 	(d) A county, city, or town that receives revenue under this section is prohibited 
191.27 	from imposing any additional host community fees on aggregate production within that 
191.28 	county, city, or town.
191.29 	(e) A county that borders two other states and that is not contiguous to a county 
191.30 	that imposes a tax under this section may impose the taxes under paragraphs (a) and (b) 
191.31 	at the rate of ten cents per cubic yard or seven cents per ton. This paragraph expires 
191.32 	December 31, 2014.

191.33 	Sec. 11. Minnesota Statutes 2008, section 309.53, subdivision 3, is amended to read:
191.34 		Subd. 3.Financial statement requirements. The financial statement shall include 
191.35 	a balance sheet, statement of income and expense, and statement of functional expenses, 
192.1 	shall be consistent with forms furnished by the attorney general, and shall be prepared in 
192.2 	accordance with generally accepted accounting principles so as to make a full disclosure 
192.3 	of the following, including necessary allocations between each item and the basis of 
192.4 	such allocations:
192.5 	(a) total receipts and total income from all sources;
192.6 	(b) cost of management and general;
192.7 	(c) program services;
192.8 	(d) cost of fund-raising;
192.9 	(e) cost of public education;
192.10 	(f) funds or properties transferred out of state, with explanation as to recipient and 
192.11 	purpose;
192.12 	(g) total net amount disbursed or dedicated within this state, broken down into total 
192.13 	amounts disbursed or dedicated for each major purpose, charitable or otherwise;
192.14 	(h) names of professional fund-raisers used during the accounting year and the 
192.15 	financial compensation and profit resulting to each professional fund-raiser; and
192.16 	(i) a list of the five highest paid directors, officers, and employees of the organization 
192.17 	and its related organizations, as that term is defined by section 317A.011, subdivision 18, 
192.18 	that receive total compensation of more than $50,000, together with the total compensation 
192.19 	paid to each. Total compensation shall include salaries, fees, bonuses, fringe benefits, 
192.20 	severance payments, and deferred compensation paid by the charitable organization and 
192.21 	all related organizations as that term is defined by section 317A.011, subdivision 18. 
192.22 	Unless otherwise required by this subdivision, the financial statement need not be 
192.23 	certified.
192.24 	A financial statement of a charitable organization which has received total revenue 
192.25 	in excess of $350,000 $750,000 for the 12 months of operation covered by the statement 
192.26 	shall be accompanied by an audited financial statement prepared in accordance with 
192.27 	generally accepted accounting principles that has been examined by an independent 
192.28 	certified public accountant for the purpose of expressing an opinion. In preparing the audit 
192.29 	the certified public accountant shall take into consideration capital, endowment or other 
192.30 	reserve funds, if any, controlled by the charitable organization. For purposes of calculating 
192.31 	the $350,000 $750,000 total revenue threshold provided by this subdivision, the value 
192.32 	of donated food to a nonprofit food shelf may not be included if the food is donated for 
192.33 	subsequent distribution at no charge, and not for resale.

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

193.1 	Sec. 12. Minnesota Statutes 2008, section 349.1641, is amended to read:
193.2 	349.1641 LICENSES; SUMMARY SUSPENSION. 
193.3 	The board may (1) summarily suspend the license of an organization that is more 
193.4 	than three months 45 days late in filing a tax return or in paying a tax required under 
193.5 	chapter 297E and may keep the suspension in effect until all required returns are filed and 
193.6 	required taxes are paid; (2) summarily suspend for not more than 90 days any license 
193.7 	issued by the board or director for what the board determines are actions detrimental to the 
193.8 	integrity of lawful gambling in Minnesota; and (3) summarily suspend the license of a 
193.9 	gambling manager who has failed to receive the training required under section 349.167, 
193.10 	subdivision 4, clause (2), and may keep the suspension in effect until the gambling 
193.11 	manager passes an examination prepared and administered by the board. The examination 
193.12 	does not qualify as continuing education credit for the next calendar year. The board must 
193.13 	notify the licensee at least 14 days before suspending the license under this section. If a 
193.14 	license is summarily suspended under this section, a contested case hearing on the merits 
193.15 	must be held within 20 days of the issuance of the order of suspension, unless the parties 
193.16 	agree to a later hearing date. The administrative law judge's report must be issued within 
193.17 	20 days after the close of the hearing record. In all cases involving summary suspension, 
193.18 	the board must issue its final decision within 30 days after receipt of the report of the 
193.19 	administrative law judge and subsequent exceptions and argument under section 14.61. 
193.20 	When an organization's license is suspended under this section, the board shall within 
193.21 	three days notify all municipalities in which the organization's gambling premises are 
193.22 	located and all licensed distributors in the state. 

193.23 	Sec. 13. Minnesota Statutes 2008, section 349.19, subdivision 9, is amended to read:
193.24 		Subd. 9.Annual financial audit; filing requirement. An organization licensed 
193.25 	under this chapter must have an annual financial audit or financial review when required 
193.26 	by section 297E.06, subdivision 4.  

193.27 	Sec. 14. Minnesota Statutes 2008, section 423A.02, subdivision 1, is amended to read:
193.28 		Subdivision 1.Amortization state aid. (a) A municipality in which is located 
193.29 	a local police or salaried firefighters' relief association to which the provisions of 
193.30 	section 69.77, apply, that had an unfunded actuarial accrued liability in the most recent 
193.31 	relief association actuarial valuation, is entitled, upon application as required by the 
193.32 	commissioner of revenue, to receive local police and salaried firefighters' relief association 
193.33 	amortization state aid if the municipality and the appropriate relief association both comply 
193.34 	with the applicable provisions of sections 69.031, subdivision 5, 69.051, subdivisions 1 
194.1 	and 3, and 69.77. If a municipality loses entitlement for amortization state aid in any year 
194.2 	because its local relief association no longer has an unfunded actuarial accrued liability, 
194.3 	the municipality is not entitled to amortization state aid in any subsequent year. 
194.4 	(b) The total amount of amortization state aid to all entitled municipalities must 
194.5 	not exceed $5,055,000.
194.6 	(c) Subject to the adjustment for the city of Minneapolis provided in this paragraph, 
194.7 	the amount of amortization state aid to which a municipality is entitled annually is an 
194.8 	amount equal to the level annual dollar amount required to amortize, by December 31, 
194.9 	2010, the unfunded actuarial accrued liability of the special fund of the appropriate 
194.10 	relief association as reported in the December 31, 1978, actuarial valuation of the 
194.11 	relief association prepared under sections 356.215 and 356.216, reduced by the dollar 
194.12 	amount required to pay the interest on the unfunded actuarial accrued liability of the 
194.13 	special fund of the relief association for calendar year 1981 set at the rate specified in 
194.14 	Minnesota Statutes 1978, section 356.215, subdivision 8. For the city of Minneapolis, the 
194.15 	amortization state aid amount thus determined must be reduced by $747,232 on account of 
194.16 	the Minneapolis Police Relief Association and by $772,768 on account of the Minneapolis 
194.17 	Fire Department Relief Association. If the amortization state aid amounts determined 
194.18 	under this paragraph exceed the amount appropriated for this purpose, the amortization 
194.19 	state aid for actual allocation must be reduced pro rata. 
194.20 	(d) Payment of amortization state aid to municipalities must be made directly to 
194.21 	the municipalities involved in three equal installments on July 15, September 15, and 
194.22 	November 15 annually. Upon receipt of amortization state aid, the municipal treasurer 
194.23 	shall transmit the aid amount to the treasurer of the local relief association for immediate 
194.24 	deposit in the special fund of the relief association.
194.25 	(e) The commissioner of revenue shall prescribe and periodically revise the form for 
194.26 	and content of the application for the amortization state aid.
194.27 	(f) The amount required under this section, as provided in subdivision 3a, is 
194.28 	appropriated annually from the general fund to the commissioner of revenue.

194.29 	EFFECTIVE DATE. This section is effective retroactively for fiscal year 2004, for 
194.30 	aid payable in 2003 and thereafter.

194.31 	Sec. 15. Minnesota Statutes 2008, section 423A.02, subdivision 1b, is amended to read:
194.32 		Subd. 1b.Additional amortization state aid. (a) Annually, on October 1, the 
194.33 	commissioner of revenue shall allocate the additional amortization state aid transferred 
194.34 	under section 69.021, subdivision 11, to: 
195.1 	(1) all police or salaried firefighters relief associations governed by and in full 
195.2 	compliance with the requirements of section 69.77, that had an unfunded actuarial accrued 
195.3 	liability in the actuarial valuation prepared under sections 356.215 and 356.216 as of the 
195.4 	preceding December 31; 
195.5 	(2) all local police or salaried firefighter consolidation accounts governed by chapter 
195.6 	353A that are certified by the executive director of the public employees retirement 
195.7 	association as having for the current fiscal year an additional municipal contribution 
195.8 	amount under section 353A.09, subdivision 5, paragraph (b), and that have implemented 
195.9 	section 353A.083, subdivision 1, if the effective date of the consolidation preceded May 
195.10 	24, 1993, and that have implemented section 353A.083, subdivision 2, if the effective date 
195.11 	of the consolidation preceded June 1, 1995; and 
195.12 	(3) the municipalities that are required to make an additional municipal contribution 
195.13 	under section 353.665, subdivision 8, for the duration of the required additional 
195.14 	contribution. 
195.15 	(b) The commissioner shall allocate the state aid on the basis of the proportional share 
195.16 	of the relief association or consolidation account of the total unfunded actuarial accrued 
195.17 	liability of all recipient relief associations and consolidation accounts as of December 31, 
195.18 	1993, for relief associations, and as of June 30, 1994, for consolidation accounts.
195.19 	(c) Beginning October 1, 2000, and annually thereafter, the commissioner shall 
195.20 	allocate the state aid, including any state aid in excess of the limitation in subdivision 
195.21 	4, on the following basis:
195.22 	(1) 64.5 percent to the municipalities to which section 353.665, subdivision 
195.23 	8, paragraph (b), or 353A.09, subdivision 5, paragraph (b), apply for distribution in 
195.24 	accordance with paragraph (b) and subject to the limitation in subdivision 4; 
195.25 	(2) 34.2 percent to the city of Minneapolis to fund any unfunded actuarial accrued 
195.26 	liability in the actuarial valuation prepared under sections 356.215 and 356.216 as of the 
195.27 	preceding December 31 for the Minneapolis Police Relief Association or the Minneapolis 
195.28 	Fire Department Relief Association; and 
195.29 	(3) 1.3 percent to the city of Virginia to fund any unfunded actuarial accrued liability 
195.30 	in the actuarial valuation prepared under sections 356.215 and 356.216 as of the preceding 
195.31 	December 31 for the Virginia Fire Department Relief Association. 
195.32 	If there is no unfunded actuarial accrued liability in both the Minneapolis Police 
195.33 	Relief Association and the Minneapolis Fire Department Relief Association as disclosed 
195.34 	in the most recent actuarial valuations for the relief associations prepared under sections 
195.35 	356.215 and 356.216, the commissioner shall allocate that 34.2 percent of the aid as 
195.36 	follows: 49 percent to the Teachers Retirement Association, 21 percent to the St. Paul 
196.1 	Teachers Retirement Fund Association, and 30 percent as additional funding to support 
196.2 	minimum fire state aid for volunteer firefighters relief associations. If there is no unfunded 
196.3 	actuarial accrued liability in the Virginia Fire Department Relief Association as disclosed 
196.4 	in the most recent actuarial valuation for the relief association prepared under sections 
196.5 	356.215 and 356.216, the commissioner shall allocate that 1.3 percent of the aid as 
196.6 	follows: 49 percent to the Teachers Retirement Association, 21 percent to the St. Paul 
196.7 	Teachers Retirement Fund Association, and 30 percent as additional funding to support 
196.8 	minimum fire state aid for volunteer firefighters relief associations. Upon the final 
196.9 	payment to municipalities required by section 353.665, subdivision 8, paragraph (b), 
196.10 	or 353A.09, subdivision 5, paragraph (b), the commissioner shall allocate that 64.5 
196.11 	percent of the aid as follows: 20 percent to the St. Paul Teachers Retirement Fund 
196.12 	Association, 20 percent to the city of Minneapolis to fund any unfunded actuarial accrued 
196.13 	liability in the actuarial valuation proposed under sections 356.215 and 356.216 as of the 
196.14 	preceding December 31 for the Minneapolis Police Relief Association or the Minneapolis 
196.15 	Firefighters Relief Association, 20 percent for the city of Duluth to pay for any costs 
196.16 	associated with the police and firefighters pensions, and 40 percent as additional funding to 
196.17 	support minimum fire state aid for volunteer firefighters relief associations. The allocation 
196.18 	must be made by the commissioner at the same time and under the same procedures 
196.19 	as specified in subdivision 3. With respect to the St. Paul Teachers Retirement Fund 
196.20 	Association, annually, beginning on July 1, 2005, if the applicable teacher's association 
196.21 	five-year average time-weighted rate of investment return does not equal or exceed the 
196.22 	performance of a composite portfolio assumed passively managed (indexed) invested ten 
196.23 	percent in cash equivalents, 60 percent in bonds and similar debt securities, and 30 percent 
196.24 	in domestic stock calculated using the formula under section 11A.04, clause (11), the aid 
196.25 	allocation to that retirement fund under this section ceases until the five-year annual rate 
196.26 	of investment return equals or exceeds the performance of that composite portfolio. 
196.27 	(d) The amounts required under this subdivision are the amounts annually 
196.28 	appropriated to the commissioner of revenue under section 69.021, subdivision 11, 
196.29 	paragraph (e).

196.30 	EFFECTIVE DATE. This section is effective retroactively for fiscal year 2004, for 
196.31 	aid payable in 2003 and thereafter.

196.32 	Sec. 16. Minnesota Statutes 2008, section 423A.02, subdivision 3, is amended to read:
196.33 		Subd. 3.Reallocation of amortization or supplementary amortization state 
196.34 	aid. (a) Seventy percent of the difference between $5,720,000 and the current year 
196.35 	amortization aid or and supplemental amortization aid distributed under subdivisions 1 
197.1 	and 1a that is not distributed for any reason to a municipality for use by a local police 
197.2 	or salaried fire relief association must be distributed by the commissioner of revenue 
197.3 	according to this paragraph. The commissioner shall distribute 70 percent of the amounts 
197.4 	derived under this paragraph to the Teachers Retirement Association and 30 percent to the 
197.5 	St. Paul Teachers Retirement Fund Association to fund the unfunded actuarial accrued 
197.6 	liabilities of the respective funds. These payments shall be made on or before June 30 
197.7 	each fiscal year. The amount required under this paragraph is appropriated annually from 
197.8 	the general fund to the commissioner of revenue. If the St. Paul Teachers Retirement Fund 
197.9 	Association becomes fully funded, its eligibility for this aid ceases. Amounts remaining 
197.10 	in the undistributed balance account at the end of the biennium if aid eligibility ceases 
197.11 	cancel to the general fund.
197.12 	(b) In order to receive amortization and supplementary amortization aid under 
197.13 	paragraph (a), Independent School District No. 625, St. Paul, must make contributions 
197.14 	to the St. Paul Teachers Retirement Fund Association in accordance with the following 
197.15 	schedule:

197.16		Fiscal Year
		Amount
		
197.17		1996
	$
	0
		
197.18		1997
	$
	0
		
197.19		1998
	$
	200,000
		
197.20		1999
	$
	400,000
		
197.21		2000
	$
	600,000
		
197.22		2001 and thereafter
	$
	800,000
		
197.23 	(c) Special School District No. 1, Minneapolis, and the city of Minneapolis must 
197.24 	each make contributions to the Teachers Retirement Association in accordance with the 
197.25 	following schedule:

197.26
197.27		Fiscal Year
	City amount
		School district 
amount
		
197.28		1996
	$
	0
		$
	0
		
197.29		1997
	$
	0
		$
	0
		
197.30		1998
	$
	250,000
		$
	250,000
		
197.31		1999
	$
	400,000
		$
	400,000
		
197.32		2000
	$
	550,000
		$
	550,000
		
197.33		2001
	$
	700,000
		$
	700,000
		
197.34		2002
	$
	850,000
		$
	850,000
		
197.35		2003 and thereafter
	$
	1,000,000
		$
	1,000,000
		
197.36 	(d) Money contributed under paragraph (a) and either paragraph (b) or (c), as 
197.37 	applicable, must be credited to a separate account in the applicable teachers retirement 
198.1 	fund and may not be used in determining any benefit increases. The separate account 
198.2 	terminates for a fund when the aid payments to the fund under paragraph (a) cease.
198.3 	(e) Thirty percent of the difference between $5,720,000 and the current year 
198.4 	amortization aid or and supplemental amortization aid under subdivisions 1 and 1a that 
198.5 	is not distributed for any reason to a municipality for use by a local police or salaried 
198.6 	firefighter relief association must be distributed under section 69.021, subdivision 7, 
198.7 	paragraph (d), as additional funding to support a minimum fire state aid amount for 
198.8 	volunteer firefighter relief associations. The amount required under this paragraph is 
198.9 	appropriated annually to the commissioner of revenue.

198.10 	EFFECTIVE DATE. This section is effective retroactively for fiscal year 2004, for 
198.11 	aid payable in 2003 and thereafter.

198.12 	Sec. 17. Minnesota Statutes 2008, section 423A.02, is amended by adding a 
198.13 	subdivision to read:
198.14 		Subd. 3a.Appropriations for amortization state aid; supplementary 
198.15 	amortization state aid; and amortization state aid and supplementary state aid 
198.16 	reallocations. $4,720,000 is annually appropriated from the general fund to the 
198.17 	commissioner of revenue for amortization state aid under subdivision 1 and for the 
198.18 	reallocation of amortization aid under subdivision 3. $1,000,000 is annually appropriated 
198.19 	from the general fund to the commissioner of revenue for supplementary amortization 
198.20 	state aid under subdivision 1a, and for the reallocation of supplementary amortization state 
198.21 	aid under subdivision 3.

198.22 	EFFECTIVE DATE. This section is effective retroactively for fiscal year 2004, for 
198.23 	aid payable in 2003 and thereafter.

198.24 	Sec. 18. Minnesota Statutes 2008, section 645.44, subdivision 19, is amended to read:
198.25 		Subd. 19.Fee and tax. (a) "Tax" means any fee, charge, exaction, or assessment 
198.26 	imposed by a governmental entity on an individual, person, entity, transaction, good, 
198.27 	service, or other thing. It excludes a price that an individual or entity chooses voluntarily 
198.28 	to pay in return for receipt of goods or services provided by the governmental entity. 
198.29 	A government good or service does not include access to or the authority to engage in 
198.30 	private market transactions with a nongovernmental party, such as licenses to engage in a 
198.31 	trade, profession, or business or to improve private property.
198.32 	(b) For purposes of applying the laws of this state, a "fee," "charge," or other similar 
198.33 	term that satisfies the functional requirements of paragraph (a) must be treated as a tax for 
199.1 	all purposes, regardless of whether the statute or law names or describes it as a tax. The 
199.2 	provisions of this subdivision do not exempt a person, corporation, organization, or entity 
199.3 	from payment of a validly imposed fee, charge, exaction, or assessment, nor preempt or 
199.4 	supersede limitations under law that apply to fees, charges, or assessments.
199.5 	(c) This subdivision is not intended to extend or limit article 4, section 18, of the 
199.6 	Minnesota Constitution.

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

199.8 	Sec. 19. Laws 2008, chapter 366, article 6, section 46, subdivision 1, is amended to 
199.9 	read:
199.10 		Subdivision 1.Authorized. Notwithstanding the contiguity requirement in 
199.11 	Minnesota Statutes, section 447.31, subdivision 2, any two or more of the following cities 
199.12 	and towns in St. Louis County may establish by resolution of their respective governing 
199.13 	bodies the White Community Hospital District or its successor: the cities of Aurora, 
199.14 	Biwabik, and Hoyt Lakes, and the towns of Biwabik, White, and Colvin. The proposed 
199.15 	resolution to establish the hospital district must be published and is subject to referendum 
199.16 	as provided in section 447.31, subdivision 2.

199.17 	EFFECTIVE DATE. This section is effective the day following final enactment 
199.18 	without local approval under Minnesota Statutes, section 645.023, subdivision 1, 
199.19 	paragraph (a), for taxes levied in 2009, payable in 2010, and thereafter.

199.20 	Sec. 20. Laws 2008, chapter 366, article 6, section 46, subdivision 2, is amended to 
199.21 	read:
199.22 		Subd. 2.Powers; may make grants. (a) Except as otherwise provided in this 
199.23 	section, the White Community Hospital District or its successor shall be organized and 
199.24 	have the powers and duties provided in Minnesota Statutes, sections 447.31, except 
199.25 	subdivisions 2, 5, and 6; 447.32, subdivisions 5, 7, and 9; 447.345; 447.37; and 447.38.
199.26 	(b) The hospital district may levy taxes as provided in this section to provide funding 
199.27 	to make grants to the White Community Hospital or its successor and any affiliated health 
199.28 	care facility or provider for any purpose authorized for hospital districts in Minnesota 
199.29 	Statutes, sections 447.31 to 447.38, except 447.331. A grant must not be made under 
199.30 	this section until the governing body of the White Community Hospital, and any of its 
199.31 	affiliated health care facilities or providers receiving a grant, have entered into a written 
199.32 	agreement with the hospital district board stating that the governing body will comply 
200.1 	with and is subject to all provisions of the Minnesota open meeting law in Minnesota 
200.2 	Statutes, chapter 13D.

200.3 	EFFECTIVE DATE. This section is effective the day following final enactment 
200.4 	without local approval under Minnesota Statutes, section 645.023, subdivision 1, 
200.5 	paragraph (a), for taxes levied in 2009, payable in 2010, and thereafter.

200.6 	Sec. 21. SPECIAL ACCOUNT; TIMING DIFFERENCES.
 200.7 	Notwithstanding the provisions of Minnesota Statutes, section 290.62, the 
200.8 	commissioner of revenue shall deposit the additional income tax and corporate franchise 
200.9 	tax revenues collected as a result of the combination of: (1) the additions under Minnesota 
200.10 	Statutes, section 290.01, subdivision 19a, clauses (7) and (8), and subdivision 19c, clauses 
200.11 	(15) and (16); and (2) adopting the provisions of American Recovery and Reinvestment 
200.12 	Act of 2009, in a special timing account in the general fund, but not to exceed $10,149,000. 
200.13 	On July 11, 2011, the commissioner of revenue shall transfer the money in the account to 
200.14 	the general fund to offset the reduction in revenues resulting from the subtractions under 
200.15 	Minnesota Statutes, section 290.01, subdivision 19b, clauses (9) and (14), and subdivision 
200.16 	19d, clauses (18) and (19).

200.17 	Sec. 22. APPROPRIATION.
 200.18 	$680,000 in fiscal year 2010 and $680,000 in fiscal year 2011 are appropriated from 
200.19 	the general fund to the commissioner of natural resources to be used to cover the costs 
200.20 	associated with issuing mining permits. This is a onetime appropriation and does not 
200.21 	become part of the agency's base budget.

200.22 	Sec. 23.  REPEALER.
 200.23 	(a) Laws 1998, chapter 407, article 8, section 12, subdivision 4, is repealed.
200.24 	(b) Laws 2009, chapter 37, article 1, section 31, subdivision 3, is repealed.
200.25 	(c) Minnesota Statutes 2008, section 126C.21, subdivision 4, is repealed.

200.26 	EFFECTIVE DATE. Paragraph (a) is effective the day following final enactment. 
200.27 	Paragraph (b) is effective May 8, 2009. Paragraph (c) is effective for revenue for fiscal 
200.28 	year 2010 and thereafter.