1.1 	A bill for an act
1.2 	relating to taxation; making policy, technical, administrative, and clarifying 
1.3 	changes to income, corporate franchise, estate, sales, use, minerals, mortgage, 
1.4 	property, gross receipts, gambling, cigarette, tobacco, liquor, insurance, and 
1.5 	various taxes and tax-related provisions; modifying local government aid and 
1.6 	tax data provision; appropriating money; amending Minnesota Statutes 2008, 
1.7 	sections 126C.21, subdivision 4; 126C.48, subdivision 8; 270B.14, subdivision 
1.8 	16; 270C.12, by adding a subdivision; 270C.446, subdivisions 2, 5; 270C.56, 
1.9 	subdivision 1; 273.11, subdivision 23; 273.111, subdivision 4; 273.1115, 
1.10 	subdivision 2; 273.113, subdivisions 1, 2; 273.1231, subdivision 8; 273.124, 
1.11 	subdivision 21; 273.13, subdivisions 23, 25, 33; 273.33, subdivision 2; 273.37, 
1.12 	subdivision 2; 274.13, subdivision 2; 274.135, subdivision 3; 274.14; 274.175; 
1.13 	275.70, subdivision 5; 275.71, subdivision 4; 287.04; 287.05, by adding a 
1.14 	subdivision; 287.22; 287.25; 289A.08, subdivision 3; 289A.12, by adding 
1.15 	a subdivision; 289A.18, subdivision 1; 289A.19, subdivision 4; 289A.38, 
1.16 	subdivision 7; 289A.41; 290.0671, subdivision 1; 290A.10; 290A.14; 290C.06; 
1.17 	290C.07; 295.56; 295.57, subdivision 5; 296A.21, subdivision 1; 297A.70, 
1.18 	subdivisions 2, 4; 297A.992, subdivision 2; 297A.993, subdivision 1; 297E.02, 
1.19 	subdivision 4; 297E.06, by adding a subdivision; 297E.11, subdivision 1; 
1.20 	297F.09, subdivision 7; 297G.09, subdivision 6; 297I.30, by adding a subdivision; 
1.21 	297I.35, subdivision 2; 298.28, subdivisions 4, 11; 423A.02, subdivisions 1b, 
1.22 	3, by adding a subdivision; 473.843, subdivision 3; 477A.011, subdivisions 
1.23 	34, 42; 477A.013, subdivision 8; repealing Minnesota Statutes 2008, sections 
1.24 	287.26; 287.27, subdivision 1; 297A.67, subdivision 24; 298.28, subdivisions 
1.25 	11a, 13; Minnesota Rules, parts 8115.0200; 8115.0300; 8115.0400; 8115.0500; 
1.26 	8115.0600; 8115.1000; 8115.1100; 8115.1200; 8115.1300; 8115.1400; 
1.27 	8115.1500; 8115.1600; 8115.1700; 8115.1800; 8115.1900; 8115.2000; 
1.28 	8115.2100; 8115.2200; 8115.2300; 8115.2400; 8115.2500; 8115.2600; 
1.29 	8115.2700; 8115.2800; 8115.2900; 8115.3000; 8115.4000; 8115.4100; 
1.30 	8115.4200; 8115.4300; 8115.4400; 8115.4500; 8115.4600; 8115.4700; 
1.31 	8115.4800; 8115.4900; 8115.5000; 8115.5100; 8115.5200; 8115.5300; 
1.32 	8115.5400; 8115.5500; 8115.5600; 8115.5700; 8115.5800; 8115.5900; 
1.33 	8115.6000; 8115.6100; 8115.6200; 8115.6300; 8115.6400; 8115.9900.
1.34 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.1 	ARTICLE 1
2.2 	INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

2.3 	Section 1. Minnesota Statutes 2008, section 289A.08, subdivision 3, is amended to 
2.4 	read:
2.5 		Subd. 3.Corporations. (a) A corporation that is subject to the state's jurisdiction to 
2.6 	tax under section 290.014, subdivision 5, must file a return, except that a foreign operating 
2.7 	corporation as defined in section 290.01, subdivision 6b, is not required to file a return.
2.8 	(b) Members of a unitary business that are required to file a combined report on one 
2.9 	return must designate a member of the unitary business to be responsible for tax matters, 
2.10 	including the filing of returns, the payment of taxes, additions to tax, penalties, interest, 
2.11 	or any other payment, and for the receipt of refunds of taxes or interest paid in excess of 
2.12 	taxes lawfully due. The designated member must be a member of the unitary business that 
2.13 	is filing the single combined report and either:
2.14 	(1) a corporation that is subject to the taxes imposed by chapter 290; or
2.15 	(2) a corporation that is not subject to the taxes imposed by chapter 290:
2.16 	(i) Such corporation consents by filing the return as a designated member under this 
2.17 	clause to remit taxes, penalties, interest, or additions to tax due from the members of the 
2.18 	unitary business subject to tax, and receive refunds or other payments on behalf of other 
2.19 	members of the unitary business. The member designated under this clause is a "taxpayer" 
2.20 	for the purposes of this chapter and chapter 270C, and is liable for any liability imposed 
2.21 	on the unitary business under this chapter and chapter 290.
2.22 	(ii) If the state does not otherwise have the jurisdiction to tax the member designated 
2.23 	under this clause, consenting to be the designated member does not create the jurisdiction 
2.24 	to impose tax on the designated member, other than as described in item (i).
2.25 	(iii) The member designated under this clause must apply for a business tax account 
2.26 	identification number.
2.27 	(c) The commissioner shall adopt rules for the filing of one return on behalf of the 
2.28 	members of an affiliated group of corporations that are required to file a combined report. 
2.29 	All members of an affiliated group that are required to file a combined report must file one 
2.30 	return on behalf of the members of the group under rules adopted by the commissioner.
2.31 	(d) If a corporation claims on a return that it has paid tax in excess of the amount of 
2.32 	taxes lawfully due, that corporation must include on that return information necessary for 
2.33 	payment of the tax in excess of the amount lawfully due by electronic means.

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

3.1 	Sec. 2. Minnesota Statutes 2008, section 289A.12, is amended by adding a subdivision 
3.2 	to read:
3.3 		Subd. 16.Qualified intermediaries. The commissioner may by notice and demand 
3.4 	require a qualified intermediary to file a return relating to transactions for which the 
3.5 	intermediary acted to facilitate exchanges under section 1031 of the Internal Revenue 
3.6 	Code. The return must include the name, address, and state or federal tax identification 
3.7 	number or Social Security number of each of the parties to the exchange, information 
3.8 	relating to the property subject to the exchange, and any other information required by 
3.9 	the commissioner.

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

3.12 	Sec. 3. Minnesota Statutes 2008, section 289A.18, subdivision 1, is amended to read:
3.13 		Subdivision 1. Individual income, fiduciary income, corporate franchise, and 
3.14 	entertainment taxes; partnership and S corporation returns; information returns; 
3.15 	mining company returns. The returns required to be made under sections 289A.08 and 
3.16 	289A.12 must be filed at the following times: 
3.17 	(1) returns made on the basis of the calendar year must be filed on April 15 following 
3.18 	the close of the calendar year, except that returns of corporations must be filed on March 
3.19 	15 following the close of the calendar year; 
3.20 	(2) returns made on the basis of the fiscal year must be filed on the 15th day of the 
3.21 	fourth month following the close of the fiscal year, except that returns of corporations 
3.22 	must be filed on the 15th day of the third month following the close of the fiscal year; 
3.23 	(3) returns for a fractional part of a year must be filed on the 15th day of the fourth 
3.24 	month following the end of the month in which falls the last day of the period for which 
3.25 	the return is made, except that the returns of corporations must be filed on the 15th day of 
3.26 	the third month following the end of the tax year; or, in the case of a corporation which is 
3.27 	a member of a unitary group, the return of the corporation must be filed on the 15th day of 
3.28 	the third month following the end of the tax year of the unitary group in which falls the 
3.29 	last day of the period for which the return is made; 
3.30 	(4) in the case of a final return of a decedent for a fractional part of a year, the return 
3.31 	must be filed on the 15th day of the fourth month following the close of the 12-month 
3.32 	period that began with the first day of that fractional part of a year; 
3.33 	(5) in the case of the return of a cooperative association, returns must be filed on or 
3.34 	before the 15th day of the ninth month following the close of the taxable year; 
4.1 	(6) if a corporation has been divested from a unitary group and files a return for 
4.2 	a fractional part of a year in which it was a member of a unitary business that files a 
4.3 	combined report under section 290.17, subdivision 4, the divested corporation's return 
4.4 	must be filed on the 15th day of the third month following the close of the common 
4.5 	accounting period that includes the fractional year; 
4.6 	(7) returns of entertainment entities must be filed on April 15 following the close of 
4.7 	the calendar year; 
4.8 	(8) returns required to be filed under section 289A.08, subdivision 4, must be filed 
4.9 	on the 15th day of the fifth month following the close of the taxable year; 
4.10 	(9) returns of mining companies must be filed on May 1 following the close of the 
4.11 	calendar year; and 
4.12 	(10) returns required to be filed with the commissioner under section 289A.12, 
4.13 	subdivision 2 or, 4 to 10, or 16 must be filed within 30 days after being demanded by 
4.14 	the commissioner. 

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

4.16 	Sec. 4. Minnesota Statutes 2008, section 289A.19, subdivision 4, is amended to read:
4.17 		Subd. 4.Estate tax returns. When an extension to file the federal estate tax return 
4.18 	has been granted under section 6081 of the Internal Revenue Code, the time for filing 
4.19 	the estate tax return is extended for that period. If the estate requests an extension to 
4.20 	file an estate tax return within the time provided in section 289A.18, subdivision 3, the 
4.21 	commissioner shall extend the time for filing the estate tax return for six months. The time 
4.22 	for filing an estate tax return shall be extended for either six months or the amount of 
4.23 	time granted under section 6081 of the Internal Revenue Code to file the federal estate 
4.24 	tax return, whichever is longer.

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

4.27 	Sec. 5. Minnesota Statutes 2008, section 289A.38, subdivision 7, is amended to read:
4.28 		Subd. 7. Federal tax changes. If the amount of income, items of tax preference, 
4.29 	deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for 
4.30 	any period, as reported to the Internal Revenue Service is changed or corrected by the 
4.31 	commissioner of Internal Revenue or other officer of the United States or other competent 
4.32 	authority, or where a renegotiation of a contract or subcontract with the United States 
4.33 	results in a change in income, items of tax preference, deductions, credits, or withholding 
5.1 	tax, or, in the case of estate tax, where there are adjustments to the taxable estate, the 
5.2 	taxpayer shall report the change or correction or renegotiation results in writing to the 
5.3 	commissioner. The report must be submitted within 180 days after the final determination 
5.4 	and must be in the form of either an amended Minnesota estate, withholding tax, corporate 
5.5 	franchise tax, or income tax return conceding the accuracy of the federal determination 
5.6 	or a letter detailing how the federal determination is incorrect or does not change the 
5.7 	Minnesota tax. An amended Minnesota income tax return must be accompanied by an 
5.8 	amended property tax refund return, if necessary. A taxpayer filing an amended federal 
5.9 	tax return must also file a copy of the amended return with the commissioner of revenue 
5.10 	within 180 days after filing the amended return. 

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

5.12 	Sec. 6. Minnesota Statutes 2008, section 290.0671, subdivision 1, is amended to read:
5.13 		Subdivision 1.Credit allowed. (a) An individual is allowed a credit against the tax 
5.14 	imposed by this chapter equal to a percentage of earned income. To receive a credit, a 
5.15 	taxpayer must be eligible for a credit under section 32 of the Internal Revenue Code.
5.16 	(b) For individuals with no qualifying children, the credit equals 1.9125 percent of 
5.17 	the first $4,620 of earned income. The credit is reduced by 1.9125 percent of earned 
5.18 	income or adjusted gross income, whichever is greater, in excess of $5,770, but in no 
5.19 	case is the credit less than zero.
5.20 	(c) For individuals with one qualifying child, the credit equals 8.5 percent of the first 
5.21 	$6,920 of earned income and 8.5 percent of earned income over $12,080 but less than 
5.22 	$13,450. The credit is reduced by 5.73 percent of earned income or adjusted gross income, 
5.23 	whichever is greater, in excess of $15,080, but in no case is the credit less than zero.
5.24 	(d) For individuals with two or more qualifying children, the credit equals ten 
5.25 	percent of the first $9,720 of earned income and 20 percent of earned income over 
5.26 	$14,860 but less than $16,800. The credit is reduced by 10.3 percent of earned income 
5.27 	or adjusted gross income, whichever is greater, in excess of $17,890, but in no case is 
5.28 	the credit less than zero.
5.29 	(e) For a nonresident or part-year resident, the credit must be allocated based on the 
5.30 	percentage calculated under section 290.06, subdivision 2c, paragraph (e).
5.31 	(f) For a person who was a resident for the entire tax year and has earned income 
5.32 	not subject to tax under this chapter, including income excluded under section 290.01, 
5.33 	subdivision 19b, clause (10) or (16), the credit must be allocated based on the ratio of 
5.34 	federal adjusted gross income reduced by the earned income not subject to tax under 
5.35 	this chapter over federal adjusted gross income. For purposes of this paragraph, the 
6.1 	subtractions for military pay under section 290.01, subdivision 19b, clauses (11) and (12), 
6.2 	are not considered "earned income not subject to tax under this chapter."
6.3 	For the purposes of this paragraph, the exclusion of combat pay under section 112 
6.4 	of the Internal Revenue Code is not considered "earned income not subject to tax under 
6.5 	this chapter."
6.6 	(g) For tax years beginning after December 31, 2001, and before December 31, 
6.7 	2004, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in 
6.8 	paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by 
6.9 	$1,000 for married taxpayers filing joint returns.
6.10 	(h) For tax years beginning after December 31, 2004, and before December 31, 
6.11 	2007, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in 
6.12 	paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by 
6.13 	$2,000 for married taxpayers filing joint returns.
6.14 	(i)(g) For tax years beginning after December 31, 2007, and before December 
6.15 	31, 2010, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in 
6.16 	paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by 
6.17 	$3,000 for married taxpayers filing joint returns. For tax years beginning after December 
6.18 	31, 2008, the commissioner shall annually adjust the $3,000 is adjusted annually for 
6.19 	inflation under subdivision 7. by the percentage determined pursuant to the provisions 
6.20 	of section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B), the word 
6.21 	"2007" shall be substituted for the word "1992." For 2009, the commissioner shall then 
6.22 	determine the percent change from the 12 months ending on August 31, 2007, to the 12 
6.23 	months ending on August 31, 2008, and in each subsequent year, from the 12 months 
6.24 	ending on August 31, 2007, to the 12 months ending on August 31 of the year preceding 
6.25 	the taxable year. The earned income thresholds as adjusted for inflation must be rounded 
6.26 	to the nearest $10. If the amount ends in $5, the amount is rounded up to the nearest $10. 
6.27 	The determination of the commissioner under this subdivision is not a rule under the 
6.28 	Administrative Procedure Act.
6.29 	(j)(h) The commissioner shall construct tables showing the amount of the credit 
6.30 	at various income levels and make them available to taxpayers. The tables shall follow 
6.31 	the schedule contained in this subdivision, except that the commissioner may graduate 
6.32 	the transition between income brackets.

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

7.1 	Sec. 7. Minnesota Statutes 2008, section 290A.10, is amended to read:
7.2 	290A.10 PROOF OF TAXES PAID.
7.3 	Every claimant who files a claim for relief for property taxes payable shall include 
7.4 	with the claim a property tax statement or a reproduction thereof in a form deemed 
7.5 	satisfactory by the commissioner of revenue indicating that there are no delinquent 
7.6 	property taxes on the homestead. Indication on the property tax statement from the county 
7.7 	treasurer that there are no delinquent taxes on the homestead shall be sufficient proof. 
7.8 	Taxes included in a confession of judgment under section 277.23 or279.37 shall not 
7.9 	constitute delinquent taxes as long as the claimant is current on the payments required to 
7.10 	be made under section 277.23 or279.37.

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

7.12 	Sec. 8. Minnesota Statutes 2008, section 290A.14, is amended to read:
7.13 	290A.14 PROPERTY TAX STATEMENT.
7.14 	The county treasurer shall prepare and send a sufficient number of copies of the 
7.15 	property tax statement to the owner, and to the owner's escrow agent if the taxes are 
7.16 	paid via an escrow account, to enable the owner to comply with the filing requirements 
7.17 	of this chapter and to retain one copy as a record. The property tax statement, in a form 
7.18 	prescribed by the commissioner, shall indicate the manner in which the claimant may 
7.19 	claim relief from the state under both this chapter and chapter 290B, and the amount of the 
7.20 	tax for which the applicant may claim relief. The statement shall also indicate if there 
7.21 	are delinquent property taxes on the property in the preceding year. Taxes included in a 
7.22 	confession of judgment under section 277.23 or279.37 shall not constitute delinquent 
7.23 	taxes as long as the claimant is current on the payments required to be made under section
7.24 	277.23 or279.37.

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

7.26 	ARTICLE 2
7.27 	SALES AND USE TAXES

7.28 	Section 1. Minnesota Statutes 2008, section 297A.70, subdivision 2, is amended to 
7.29 	read:
7.30 		Subd. 2.Sales to government. (a) All sales, except those listed in paragraph (b), 
7.31 	to the following governments and political subdivisions, or to the listed agencies or 
7.32 	instrumentalities of governments and political subdivisions, are exempt:
8.1 	(1) the United States and its agencies and instrumentalities;
8.2 	(2) school districts, the University of Minnesota, state universities, community 
8.3 	colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts 
8.4 	Education, and an instrumentality of a political subdivision that is accredited as an 
8.5 	optional/special function school by the North Central Association of Colleges and Schools;
8.6 	(3) hospitals and nursing homes owned and operated by political subdivisions of 
8.7 	the state of tangible personal property and taxable services used at or by hospitals and 
8.8 	nursing homes;
8.9 	(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip 
8.10 	operations provided for in section 473.4051; 
8.11 	(5) other states or political subdivisions of other states, if the sale would be exempt 
8.12 	from taxation if it occurred in that state; and
8.13 	(6) sales to public libraries, public library systems, multicounty, multitype library 
8.14 	systems as defined in section 134.001, county law libraries under chapter 134A, state 
8.15 	agency libraries, the state library under section 480.09, and the Legislative Reference 
8.16 	Library. 
8.17 	(b) This exemption does not apply to the sales of the following products and services:
8.18 	(1) building, construction, or reconstruction materials purchased by a contractor 
8.19 	or a subcontractor as a part of a lump-sum contract or similar type of contract with a 
8.20 	guaranteed maximum price covering both labor and materials for use in the construction, 
8.21 	alteration, or repair of a building or facility;
8.22 	(2) construction materials purchased by tax exempt entities or their contractors to 
8.23 	be used in constructing buildings or facilities which will not be used principally by the 
8.24 	tax exempt entities;
8.25 	(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11, 
8.26 	except for leases entered into by the United States or its agencies or instrumentalities; or 
8.27 	(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause 
8.28 	(2), and prepared food, candy, and soft drinks, and alcoholic beverages as defined in 
8.29 	section 297A.67, subdivision 2, except for lodging, prepared food, candy, and soft 
8.30 	drinks, and alcoholic beverages purchased directly by the United States or its agencies 
8.31 	or instrumentalities. 
8.32 	(c) As used in this subdivision, "school districts" means public school entities and 
8.33 	districts of every kind and nature organized under the laws of the state of Minnesota, and 
8.34 	any instrumentality of a school district, as defined in section 471.59. 

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

9.1 	Sec. 2. Minnesota Statutes 2008, section 297A.70, subdivision 4, is amended to read:
9.2 		Subd. 4.Sales to nonprofit groups. (a) All sales, except those listed in paragraph 
9.3 	(b), to the following "nonprofit organizations" are exempt:
9.4 	(1) a corporation, society, association, foundation, or institution organized and 
9.5 	operated exclusively for charitable, religious, or educational purposes if the item 
9.6 	purchased is used in the performance of charitable, religious, or educational functions; and
9.7 	(2) any senior citizen group or association of groups that:
9.8 	(i) in general limits membership to persons who are either age 55 or older, or 
9.9 	physically disabled; and
9.10 	(ii) is organized and operated exclusively for pleasure, recreation, and other 
9.11 	nonprofit purposes, not including housing, no part of the net earnings of which inures to 
9.12 	the benefit of any private shareholders.; and
9.13 	(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.
9.14 	For purposes of this subdivision, charitable purpose includes the maintenance of a 
9.15 	cemetery owned by a religious organization.
9.16 	(b) This exemption does not apply to the following sales:
9.17 	(1) building, construction, or reconstruction materials purchased by a contractor 
9.18 	or a subcontractor as a part of a lump-sum contract or similar type of contract with a 
9.19 	guaranteed maximum price covering both labor and materials for use in the construction, 
9.20 	alteration, or repair of a building or facility;
9.21 	(2) construction materials purchased by tax-exempt entities or their contractors to 
9.22 	be used in constructing buildings or facilities that will not be used principally by the 
9.23 	tax-exempt entities; and
9.24 	(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause 
9.25 	(2), and prepared food, candy, and soft drinks, and alcoholic beverages as defined in 
9.26 	section 297A.67, subdivision 2, except wine purchased by an established religious 
9.27 	organization for sacramental purposes; and 
9.28 	(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except 
9.29 	as provided in paragraph (c). 
9.30 	(c) This exemption applies to the leasing of a motor vehicle as defined in section 
9.31 	297B.01, subdivision 11, only if the vehicle is: 
9.32 	(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a 
9.33 	passenger automobile, as defined in section 168.002, if the automobile is designed and 
9.34 	used for carrying more than nine persons including the driver; and 
10.1 	(2) intended to be used primarily to transport tangible personal property or 
10.2 	individuals, other than employees, to whom the organization provides service in 
10.3 	performing its charitable, religious, or educational purpose.
10.4 	(d) A limited liability company also qualifies for exemption under this subdivision if 
10.5 	(1) it consists of a sole member that would qualify for the exemption, and (2) the items 
10.6 	purchased qualify for the exemption.

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

10.10 	Sec. 3. Minnesota Statutes 2008, section 297A.992, subdivision 2, is amended to read:
10.11 		Subd. 2. Authorization; rates. (a) Notwithstanding section 297A.99, subdivisions 
10.12 	1, 2, and 3, or 477A.016, or any other law, the board of a county participating in a 
10.13 	joint powers agreement as specified in this section shall impose by resolution (1) a 
10.14 	transportation sales and use tax at a rate of one-quarter of one percent on retail sales and 
10.15 	uses taxable under this chapter, and (2) an excise tax of $20 per motor vehicle, as defined 
10.16 	in section 297B.01, subdivision 11, purchased or acquired from any person engaged in the 
10.17 	business of selling motor vehicles at retail, occurring within the jurisdiction of the taxing 
10.18 	authority. The taxes authorized are to fund transportation improvements as specified in 
10.19 	this section, including debt service on obligations issued to finance such improvements 
10.20 	pursuant to subdivision 7. 
10.21 	(b) The tax imposed under this section is not included in determining if the total tax 
10.22 	on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986, 
10.23 	chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article 
10.24 	12, section 87, or in determining a tax that may be imposed under any other limitations. 

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

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

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

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

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

11.9 	ARTICLE 3
11.10 	SPECIAL TAXES

11.11 	Section 1. Minnesota Statutes 2008, section 126C.21, subdivision 4, is amended to read:
11.12 		Subd. 4.Taconite deductions. For districts that have revenue under sections 
11.13 	298.018; 298.225; 298.24 to 298.28, excluding 298.26 and 298.28, subdivision 4, 
11.14 	paragraph (b), item (ii), two cents per taxable ton under paragraphs (c), item (i), and
11.15 	(d); 298.34 to 298.39; 298.391 to 298.396; 298.405; and 477A.15, or any law imposing 
11.16 	a tax upon severed mineral values; the general education aid must be reduced in the 
11.17 	final adjustment payment by (1) the amount of the revenue recognized pursuant to those 
11.18 	sections for the fiscal year to which the final adjustment is attributable, less (2) the amount 
11.19 	that was calculated, pursuant to section 126C.48, subdivision 8, as a reduction of the levy 
11.20 	attributable to the fiscal year to which the final adjustment is attributable. If the final 
11.21 	adjustment of a district's general education aid for a fiscal year is a negative amount 
11.22 	because of this subdivision, the next fiscal year's general education aid to that district must 
11.23 	be reduced by this negative amount in the following manner: there must be withheld from 
11.24 	each scheduled general education aid payment due the district in such fiscal year, 15 
11.25 	percent of the total negative amount, until the total negative amount has been withheld. 
11.26 	The amount reduced from general education aid pursuant to this subdivision must reduce 
11.27 	revenue in the fiscal year to which the final adjustment payment is attributable.

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

11.29 	Sec. 2. Minnesota Statutes 2008, section 126C.48, subdivision 8, is amended to read:
11.30 		Subd. 8.Taconite payment and other reductions. (1) Reductions in levies 
11.31 	pursuant to subdivision 1 must be made prior to the reductions in clause (2).
12.1 	(2) Notwithstanding any other law to the contrary, districts that have revenue 
12.2 	pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed 
12.3 	under sections 298.26; 298.28, subdivision 4, paragraph (b), item (ii), two cents per 
12.4 	taxable ton under paragraphs (c), clause items (i) and  (ii), and (d); 298.34 to 298.39; 
12.5 	298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon severed 
12.6 	mineral values must reduce the levies authorized by this chapter and chapters 120B, 
12.7 	122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the previous year's 
12.8 	revenue specified under this clause.
12.9 	(3) The amount of any voter approved referendum, facilities down payment, and 
12.10 	debt levies shall not be reduced by more than 50 percent under this subdivision. In 
12.11 	administering this paragraph, the commissioner shall first reduce the nonvoter approved 
12.12 	levies of a district; then, if any payments, severed mineral value tax revenue or recognized 
12.13 	revenue under paragraph (2) remains, the commissioner shall reduce any voter approved 
12.14 	referendum levies authorized under section 126C.17; then, if any payments, severed 
12.15 	mineral value tax revenue or recognized revenue under paragraph (2) remains, the 
12.16 	commissioner shall reduce any voter approved facilities down payment levies authorized 
12.17 	under section 123B.63 and then, if any payments, severed mineral value tax revenue or 
12.18 	recognized revenue under paragraph (2) remains, the commissioner shall reduce any 
12.19 	voter approved debt levies.
12.20 	(4) Before computing the reduction pursuant to this subdivision of the health and 
12.21 	safety levy authorized by sections 123B.57 and 126C.40, subdivision 5, the commissioner 
12.22 	shall ascertain from each affected school district the amount it proposes to levy under 
12.23 	each section or subdivision. The reduction shall be computed on the basis of the amount 
12.24 	so ascertained.
12.25 	(5) To the extent the levy reduction calculated under paragraph (2) exceeds the 
12.26 	limitation in paragraph (3), an amount equal to the excess must be distributed from the 
12.27 	school district's distribution under sections 298.225, 298.28, and 477A.15 in the following 
12.28 	year to the cities and townships within the school district in the proportion that their 
12.29 	taxable net tax capacity within the school district bears to the taxable net tax capacity of 
12.30 	the school district for property taxes payable in the year prior to distribution. No city or 
12.31 	township shall receive a distribution greater than its levy for taxes payable in the year prior 
12.32 	to distribution. The commissioner of revenue shall certify the distributions of cities and 
12.33 	towns under this paragraph to the county auditor by September 30 of the year preceding 
12.34 	distribution. The county auditor shall reduce the proposed and final levies of cities and 
12.35 	towns receiving distributions by the amount of their distribution. Distributions to the cities 
12.36 	and towns shall be made at the times provided under section 298.27.

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

13.2 	Sec. 3. Minnesota Statutes 2008, section 287.04, is amended to read:
13.3 	287.04 EXEMPTIONS.
13.4 	The tax imposed by section 287.035 does not apply to:
13.5 	(a) A decree of marriage dissolution or an instrument made pursuant to it.
13.6 	(b) A mortgage given to correct a misdescription of the mortgaged property.
13.7 	(c) A mortgage or other instrument that adds additional security for the same debt 
13.8 	for which mortgage registry tax has been paid.
13.9 	(d) A contract for the conveyance of any interest in real property, including a 
13.10 	contract for deed.
13.11 	(e) A mortgage secured by real property subject to the minerals production tax of 
13.12 	sections 298.24 to 298.28.
13.13 	(f) The principal amount of a mortgage loan made under a low and moderate 
13.14 	income or other affordable housing program, if the mortgagee is a federal, state, or local 
13.15 	government agency.
13.16 	(g) Mortgages granted by fraternal benefit societies subject to section 64B.24.
13.17 	(h) A mortgage amendment or extension, as defined in section 287.01.
13.18 	(i) An agricultural mortgage if the proceeds of the loan secured by the mortgage are 
13.19 	used to acquire or improve real property classified under section 273.13, subdivision 23, 
13.20 	paragraph (a), or (b), clause (1), (2), or (3).
13.21 	(j) A mortgage on an armory building as set forth in section 193.147.

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

13.23 	Sec. 4. Minnesota Statutes 2008, section 287.05, is amended by adding a subdivision 
13.24 	to read:
13.25 		Subd. 9.Modification of mortgage. If a mortgage, or a document modifying a 
13.26 	mortgage, contains more than one statement that purports to limit: the enforcement of 
13.27 	the mortgage to a certain dollar amount; the tax imposed on the mortgage under this 
13.28 	chapter; or the effect of a modifying document, including but not limited to the statements 
13.29 	authorized in subdivisions 1, 1a, and 8, then the tax must be imposed based on the 
13.30 	combined effect, if any, of all the statements.

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

14.1 	Sec. 5. Minnesota Statutes 2008, section 287.22, is amended to read:
14.2 	287.22 EXEMPTIONS. 
14.3 	The tax imposed by section 287.21 does not apply to: 
14.4 	(1) an executory contract for the sale of real property under which the purchaser is 
14.5 	entitled to or does take possession of the real property, or any assignment or cancellation 
14.6 	of the contract; 
14.7 	(2) a mortgage or an amendment, assignment, extension, partial release, or 
14.8 	satisfaction of a mortgage; 
14.9 	(3) a will; 
14.10 	(4) a plat; 
14.11 	(5) a lease, amendment of lease, assignment of lease, or memorandum of lease; 
14.12 	(6) a deed, instrument, or writing in which the United States or any agency or 
14.13 	instrumentality thereof is the grantor, assignor, transferor, conveyor, grantee, or assignee; 
14.14 	(7) a deed for a cemetery lot or lots; 
14.15 	(8) a deed of distribution by a personal representative; 
14.16 	(9) a deed to or from a co-owner partitioning their undivided interest in the same 
14.17 	piece of real property; 
14.18 	(10) a deed or other instrument of conveyance issued pursuant to a permanent school 
14.19 	fund land exchange under section 92.121 and related laws; 
14.20 	(11) a referee's or sheriff's certificate of sale in a mortgage or lien foreclosure sale; 
14.21 	(12) a referee's, sheriff's, or certificate holder's certificate of redemption from a 
14.22 	mortgage or lien foreclosure sale issued under section 580.23 or other statute applicable to 
14.23 	redemption by an owner of real property; 
14.24 	(13) a deed, instrument, or writing which grants, creates, modifies, or terminates 
14.25 	an easement; 
14.26 	(14) a decree of marriage dissolution, as defined in section 287.01, subdivision 4, 
14.27 	or a deed or other instrument between the parties to the dissolution made pursuant to the 
14.28 	terms of the decree; and 
14.29 	(15) a transfer on death deed under section 507.071, and any affidavit or other 
14.30 	document to the extent it references a transfer on death deed. 

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

14.32 	Sec. 6. Minnesota Statutes 2008, section 287.25, is amended to read:
14.33 	287.25 PAYMENT OF TAX; STAMPS.
15.1 	Except for documents filed electronically, the county board shall determine the 
15.2 	method for collection of the tax imposed by section 287.21: 
15.3 	(1) The tax imposed by section 287.21 may be paid by the affixing of a documentary 
15.4 	stamp or stamps in the amount of the tax to the document or instrument with respect to 
15.5 	which the tax is paid, provided that the county board may permit the payment of the 
15.6 	tax without the affixing of the documentary stamps and in such cases shall direct the 
15.7 	treasurer to endorse a receipt for such tax upon the face of the document or instrument. 
15.8 	Documents submitted electronically must have the deed tax data affixed electronically and 
15.9 	the tax paid as provided in section 287.08. 
15.10 	(2) the tax imposed by section 287.21may must be paid in the manner prescribed by 
15.11 	section 287.08 relating to payment of mortgage registration tax, and the treasurer must 
15.12 	endorse a receipt for the tax on the face of the document or instrument. 

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

15.14 	Sec. 7. Minnesota Statutes 2008, section 295.56, is amended to read:
15.15 	295.56 TRANSFER OF ACCOUNTS RECEIVABLE.
15.16 	When a hospital or, surgical center,  health care provider, or wholesale drug 
15.17 	distributor transfers, assigns, or sells accounts receivable to another person who is subject 
15.18 	to tax under this chapter, liability for the tax on the accounts receivable is imposed on the 
15.19 	transferee, assignee, or buyer of the accounts receivable. No liability for these accounts 
15.20 	receivable is imposed on the transferor, assignor, or seller of the accounts receivable.

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

15.22 	Sec. 8. Minnesota Statutes 2008, section 295.57, subdivision 5, is amended to read:
15.23 		Subd. 5.Exemption for amounts paid for legend drugs. If a hospital, surgical 
15.24 	center, or health care provider cannot determine the actual cost or reimbursement of 
15.25 	legend drugs under the exemption provided in section 295.53, subdivision 1, paragraph 
15.26 	(a), clause (6) (5), the following method must be used: 
15.27 	A hospital, surgical center, or health care provider must determine the amount paid 
15.28 	for legend drugs used during the month or quarter and multiply that amount by a ratio, 
15.29 	the numerator of which is the total amount received for taxable patient services, and the 
15.30 	denominator of which is the total amount received for all patient services, including 
15.31 	amounts exempt under section 295.53, subdivision 1. The result represents the allowable 
15.32 	exemption for the monthly or quarterly cost of drugs. 

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

16.2 	Sec. 9. Minnesota Statutes 2008, section 296A.21, subdivision 1, is amended to read:
16.3 		Subdivision 1.General rules. (a) The commissioner shall make determinations, 
16.4 	corrections, assessments, and refunds with respect to taxes and fees under this chapter, 
16.5 	including interest, additions to taxes, and assessable penalties. Except as otherwise 
16.6 	provided in this section, the amount of taxes assessable must be assessed within 3-1/2 
16.7 	years after the date the return is filed. For purposes of this section, a tax return filed before 
16.8 	the last day prescribed by law for filing is considered to be filed on the last day.
16.9 	(b) A claim for a refund of an overpayment of state tax or fees must be filed within 
16.10 	3-1/2 years from the date prescribed for filing the return, plus any extension of time 
16.11 	granted for filing the return, but only if filed within the extended time; or the claim must 
16.12 	be filed within one year from the date of an order assessing tax or fees, or from the date of 
16.13 	a return filed by the commissioner, upon payment in full of the tax, fees, penalties, and 
16.14 	interest shown on the order or return, whichever period expires later.

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

16.16 	Sec. 10. Minnesota Statutes 2008, section 297E.02, subdivision 4, is amended to read:
16.17 		Subd. 4.Pull-tab and tipboard tax. (a) A tax is imposed on the sale of each deal 
16.18 	of pull-tabs and tipboards sold by a distributor. The rate of the tax is 1.7 percent of the 
16.19 	ideal gross of the pull-tab or tipboard deal. The sales tax imposed by chapter 297A on the 
16.20 	sale of the pull-tabs and tipboards by the distributor is imposed on the retail sales price 
16.21 	less the tax imposed by this subdivision. The retail sale of pull-tabs or tipboards by the 
16.22 	organization is exempt from taxes imposed by chapter 297A and is exempt from all local 
16.23 	taxes and license fees except a fee authorized under section 349.16, subdivision 8.
16.24 	(b) The liability for the tax imposed by this section is incurred when the pull-tabs 
16.25 	and tipboards are delivered by the distributor to the customer or to a common or contract 
16.26 	carrier for delivery to the customer, or when received by the customer's authorized 
16.27 	representative at the distributor's place of business, regardless of the distributor's method 
16.28 	of accounting or the terms of the sale.
16.29 	The tax imposed by this subdivision is imposed on all sales of pull-tabs and 
16.30 	tipboards, except the following:
16.31 	(1) sales to the governing body of an Indian tribal organization for use on an Indian 
16.32 	reservation;
17.1 	(2) sales to distributors licensed under the laws of another state or of a province of 
17.2 	Canada, as long as all statutory and regulatory requirements are met in the other state or 
17.3 	province;
17.4 	(3) sales of promotional tickets as defined in section 349.12; and
17.5 	(4) pull-tabs and tipboards sold to an organization that sells pull-tabs and tipboards 
17.6 	under the exemption from licensing in section 349.166, subdivision 2. A distributor shall 
17.7 	require an organization conducting exempt gambling to show proof of its exempt status 
17.8 	before making a tax-exempt sale of pull-tabs or tipboards to the organization. A distributor 
17.9 	shall identify, on all reports submitted to the commissioner, all sales of pull-tabs and 
17.10 	tipboards that are exempt from tax under this subdivision.
17.11 	(c) A distributor having a liability of $120,000 $10,000 or more during a fiscal year 
17.12 	ending June 30 must remit all liabilities in the subsequent calendar year by electronic 
17.13 	means.
17.14 	(d) Any customer who purchases deals of pull-tabs or tipboards from a distributor 
17.15 	may file an annual claim for a refund or credit of taxes paid pursuant to this subdivision 
17.16 	for unsold pull-tab and tipboard tickets. The claim must be filed with the commissioner on 
17.17 	a form prescribed by the commissioner by March 20 of the year following the calendar 
17.18 	year for which the refund is claimed. The refund must be filed as part of the customer's 
17.19 	February monthly return. The refund or credit is equal to 1.7 percent of the face value 
17.20 	of the unsold pull-tab or tipboard tickets, provided that the refund or credit will be 1.75 
17.21 	percent of the face value of the unsold pull-tab or tipboard tickets for claims for a refund 
17.22 	or credit of taxes filed on the February 2001 monthly return. The refund claimed will be 
17.23 	applied as a credit against tax owing under this chapter on the February monthly return. If 
17.24 	the refund claimed exceeds the tax owing on the February monthly return, that amount 
17.25 	will be refunded. The amount refunded will bear interest pursuant to section 270C.405
17.26 	from 90 days after the claim is filed.

17.27 	EFFECTIVE DATE. This section is effective for payments due in calendar year 
17.28 	2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, 
17.29 	2009, and in fiscal years thereafter.

17.30 	Sec. 11. Minnesota Statutes 2008, section 297E.06, is amended by adding a subdivision 
17.31 	to read:
17.32 		Subd. 1a.Required signatures. The gambling manager and the chief executive 
17.33 	officer of the organization, or their respective designees, and the person who completed 
17.34 	the tax return must sign the tax return. The organization shall inform the commissioner of 
18.1 	revenue in writing of the identity of the designees as soon as practicable in the form and 
18.2 	manner prescribed by the commissioner.

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

18.4 	Sec. 12. Minnesota Statutes 2008, section 297E.11, subdivision 1, is amended to read:
18.5 		Subdivision 1.General rule. Except as otherwise provided in this chapter, the 
18.6 	amount of taxes assessable must be assessed within 3-1/2 years after the return is filed, 
18.7 	whether or not the return is filed on or after the date prescribed. A return must not be 
18.8 	treated as filed until it is in processible form. A return is in processible form if it is filed 
18.9 	on a permitted form and contains sufficient data to identify the taxpayer and permit the 
18.10 	mathematical verification of the tax liability shown on the return. For purposes of this 
18.11 	section, a tax return filed before the last day prescribed by law for filing is considered to 
18.12 	be filed on the last day.

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

18.14 	Sec. 13. Minnesota Statutes 2008, section 297F.09, subdivision 7, is amended to read:
18.15 		Subd. 7.Electronic payment. A cigarette or tobacco products distributor having a 
18.16 	liability of $120,000$10,000 or more during a fiscal year ending June 30 must remit all 
18.17 	liabilities in the subsequent calendar year by electronic means.

18.18 	EFFECTIVE DATE. This section is effective for payments due in calendar year 
18.19 	2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, 
18.20 	2009, and in fiscal years thereafter.

18.21 	Sec. 14. Minnesota Statutes 2008, section 297G.09, subdivision 6, is amended to read:
18.22 		Subd. 6.Electronic payments. A licensed brewer, importer, or wholesaler having 
18.23 	an excise tax liability of $120,000$10,000 or more during a fiscal year ending June 30 
18.24 	must remit all excise tax liabilities in the subsequent calendar year by electronic means.

18.25 	EFFECTIVE DATE. This section is effective for payments due in calendar year 
18.26 	2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, 
18.27 	2009, and in fiscal years thereafter.

18.28 	Sec. 15. Minnesota Statutes 2008, section 297I.30, is amended by adding a subdivision 
18.29 	to read:
19.1 		Subd. 9.Extensions for filing returns. When, in the commissioner's judgment, 
19.2 	good cause exists, the commissioner may extend the time for filing returns for not more 
19.3 	than six months.

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

19.5 	Sec. 16. Minnesota Statutes 2008, section 297I.35, subdivision 2, is amended to read:
19.6 		Subd. 2.Electronic payments. If the aggregate amount of tax and surcharges 
19.7 	due under this chapter during a calendar year is equal to or exceeds $120,000 $10,000, 
19.8 	or if the taxpayer is required to make payment of any other tax to the commissioner by 
19.9 	electronic means, then all tax and surcharge payments in the subsequent calendar year 
19.10 	must be paid by electronic means.

19.11 	EFFECTIVE DATE. This section is effective for payments due in calendar year 
19.12 	2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, 
19.13 	2009, and in fiscal years thereafter.

19.14 	Sec. 17. Minnesota Statutes 2008, section 298.28, subdivision 4, is amended to read:
19.15 		Subd. 4. School districts. (a) 23.15 cents per taxable ton, plus the increase provided 
19.16 	in paragraph (d) must be allocated to qualifying school districts to be distributed, based 
19.17 	upon the certification of the commissioner of revenue, under paragraphs (b), (c), and (f). 
19.18 	(b)(i) 3.43 cents per taxable ton must be distributed to the school districts in which 
19.19 	the lands from which taconite was mined or quarried were located or within which the 
19.20 	concentrate was produced. The distribution must be based on the apportionment formula 
19.21 	prescribed in subdivision 2. 
19.22 	(ii) Four cents per taxable ton from each taconite facility must be distributed to 
19.23 	each affected school district for deposit in a fund dedicated to building maintenance 
19.24 	and repairs, as follows: 
19.25 	(1) proceeds from Keewatin Taconite or its successor are distributed to Independent 
19.26 	School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor 
19.27 	districts; 
19.28 	(2) proceeds from the Hibbing Taconite Company or its successor are distributed to 
19.29 	Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor 
19.30 	districts; 
19.31 	(3) proceeds from the Mittal Steel Company and Minntac or their successors are 
19.32 	distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia, 
19.33 	2711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts; 
20.1 	(4) proceeds from the Northshore Mining Company or its successor are distributed 
20.2 	to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior, 
20.3 	or their successor districts; and 
20.4 	(5) proceeds from United Taconite or its successor are distributed to Independent 
20.5 	School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their 
20.6 	successor districts. 
20.7 	Revenues that are required to be distributed to more than one district shall be 
20.8 	apportioned according to the number of pupil units identified in section 126C.05, 
20.9 	subdivision 1, enrolled in the second previous year. 
20.10 	(c)(i) 15.72 cents per taxable ton, less any amount distributed under paragraph (e), 
20.11 	shall be distributed to a group of school districts comprised of those school districts which 
20.12 	qualify as a tax relief area under section 273.134, paragraph (b), or in which there is a 
20.13 	qualifying municipality as defined by section 273.134, paragraph (a), in direct proportion 
20.14 	to school district indexes as follows: for each school district, its pupil units determined 
20.15 	under section 126C.05 for the prior school year shall be multiplied by the ratio of the 
20.16 	average adjusted net tax capacity per pupil unit for school districts receiving aid under 
20.17 	this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year 
20.18 	ending prior to distribution to the adjusted net tax capacity per pupil unit of the district. 
20.19 	Each district shall receive that portion of the distribution which its index bears to the sum 
20.20 	of the indices for all school districts that receive the distributions. 
20.21 	(ii) Notwithstanding clause (i), each school district that receives a distribution 
20.22 	under sections 298.018; 298.23 to 298.28, exclusive of any amount received under this 
20.23 	clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a tax on 
20.24 	severed mineral values after reduction for any portion distributed to cities and towns under 
20.25 	section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its levy 
20.26 	reduction under section 126C.48, subdivision 8, for the second year prior to the year of the 
20.27 	distribution shall receive a distribution equal to the difference; the amount necessary to 
20.28 	make this payment shall be derived from proportionate reductions in the initial distribution 
20.29 	to other school districts under clause (i). 
20.30 	(d) Any school district described in paragraph (c) where a levy increase pursuant to 
20.31 	section 126C.17, subdivision 9, was authorized by referendum for taxes payable in 2001, 
20.32 	shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 times the 
20.33 	pupil units identified in section 126C.05, subdivision 1, enrolled in the second previous 
20.34 	year or the 1983-1984 school year, whichever is greater, less the product of 1.8 percent 
20.35 	times the district's taxable net tax capacity in the second previous year. 
21.1 	If the total amount provided by paragraph (d) is insufficient to make the payments 
21.2 	herein required then the entitlement of $175 per pupil unit shall be reduced uniformly 
21.3 	so as not to exceed the funds available. Any amounts received by a qualifying school 
21.4 	district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general 
21.5 	education aid which the district receives pursuant to section 126C.13 or the permissible 
21.6 	levies of the district. Any amount remaining after the payments provided in this paragraph 
21.7 	shall be paid to the commissioner of Iron Range resources and rehabilitation who shall 
21.8 	deposit the same in the taconite environmental protection fund and the Douglas J. Johnson 
21.9 	economic protection trust fund as provided in subdivision 11. 
21.10 	Each district receiving money according to this paragraph shall reserve the lesser of 
21.11 	the amount received under this paragraph or $25 times the number of pupil units served 
21.12 	in the district. It may use the money for early childhood programs or for outcome-based 
21.13 	learning programs that enhance the academic quality of the district's curriculum. The 
21.14 	outcome-based learning programs must be approved by the commissioner of education. 
21.15 	(e) There shall be distributed to any school district the amount which the school 
21.16 	district was entitled to receive under section 298.32 in 1975. 
21.17 	(f) Four cents per taxable ton must be distributed to qualifying school districts 
21.18 	according to the distribution specified in paragraph (b), clause (ii), and two cents per 
21.19 	taxable ton must be distributed according to the distribution specified in paragraph 
21.20 	(c). These amounts are not subject to sections 126C.21, subdivision 4, and 126C.48, 
21.21 	subdivision 8.

21.22 	EFFECTIVE DATE. This section is effective for distributions in 2009 and 
21.23 	thereafter.

21.24 	Sec. 18. Minnesota Statutes 2008, section 298.28, subdivision 11, is amended to read:
21.25 		Subd. 11.Remainder. (a) The proceeds of the tax imposed by section 298.24
21.26 	which remain after the distributions and payments in subdivisions 2 to 10a, as certified 
21.27 	by the commissioner of revenue, and paragraphs (b), (c), and (d), and (e) have been 
21.28 	made, together with interest earned on all money distributed under this section prior to 
21.29 	distribution, shall be divided between the taconite environmental protection fund created 
21.30 	in section 298.223 and the Douglas J. Johnson economic protection trust fund created in 
21.31 	section 298.292 as follows: Two-thirds to the taconite environmental protection fund and 
21.32 	one-third to the Douglas J. Johnson economic protection trust fund. The proceeds shall be 
21.33 	placed in the respective special accounts.
21.34 	(b) There shall be distributed to each city, town, and county the amount that it 
21.35 	received under section 294.26 in calendar year 1977; provided, however, that the amount 
22.1 	distributed in 1981 to the unorganized territory number 2 of Lake County and the town 
22.2 	of Beaver Bay based on the between-terminal trackage of Erie Mining Company will be 
22.3 	distributed in 1982 and subsequent years to the unorganized territory number 2 of Lake 
22.4 	County and the towns of Beaver Bay and Stony River based on the miles of track of Erie 
22.5 	Mining Company in each taxing district.
22.6 	(c) There shall be distributed to the Iron Range Resources and Rehabilitation Board 
22.7 	the amounts it received in 1977 under section 298.22. The amount distributed under 
22.8 	this paragraph shall be expended within or for the benefit of the taconite assistance area 
22.9 	defined in section 273.1341.
22.10 	(d) There shall be distributed to each school district 62 percent of the amount that it 
22.11 	received under section 294.26 in calendar year 1977. 
22.12 	(e) In 2003 only, $100,000 must be distributed to a township located in a taconite 
22.13 	tax relief area as defined in section 273.134, paragraph (a), that received $119,259 of 
22.14 	homestead and agricultural credit aid and $182,014 in local government aid in 2001.

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

22.16 	Sec. 19. Minnesota Statutes 2008, section 473.843, subdivision 3, is amended to read:
22.17 		Subd. 3.Payment of fee. On or before the 20th day of each month each operator 
22.18 	shall pay the fee due under this section for the previous month, using a form provided 
22.19 	by the commissioner of revenue.
22.20 	An operator having a fee of $120,000 $10,000 or more during a fiscal year ending 
22.21 	June 30 must pay all fees in the subsequent calendar year by electronic means.

22.22 	EFFECTIVE DATE. This section is effective for payments due in calendar year 
22.23 	2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, 
22.24 	2009, and in fiscal years thereafter.

22.25 	Sec. 20.  REPEALER.
 22.26 	Minnesota Statutes 2008, sections 287.26; 287.27, subdivision 1; and 298.28, 
22.27 	subdivisions 11a and 13, are repealed.

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

22.29 	ARTICLE 4
22.30 	PROPERTY TAXES AND AIDS

22.31 	Section 1. Minnesota Statutes 2008, section 273.11, subdivision 23, is amended to read:
23.1 		Subd. 23.First tier valuation limit; agricultural homestead property. (a) 
23.2 	Beginning with assessment year 2006, The commissioner of revenue shall annually certify 
23.3 	the first tier limit for agricultural homestead property as. For assessment year 2010, the 
23.4 	limit is $1,100,000. Beginning with assessment year 2011, the limit is the product of (i) 
23.5 	$600,000 the first tier limit for the preceding assessment year, and (ii) the ratio of the 
23.6 	statewide average taxable market value of agricultural property per acre of deeded farm 
23.7 	land in the preceding assessment year to the statewide average taxable market value of 
23.8 	agricultural property per acre of deeded farm land for the second preceding assessment 
23.9 	year 2004. The limit shall be rounded to the nearest $10,000.
23.10 	(b) For the purposes of this subdivision, "agricultural property" means all class 
23.11 	2 2a property under section 273.13, subdivision 23, except for (1) timberland, (2) a 
23.12 	landing area or public access area of a privately owned public use airport, and (3) property 
23.13 	consisting of the house, garage, and immediately surrounding one acre of land of an 
23.14 	agricultural homestead.
23.15 	(c) The commissioner shall certify the limit by January 2 of each assessment year, 
23.16 	except that for assessment year 2006 the commissioner shall certify the limit by June 
23.17 	1, 2006.

23.18 	EFFECTIVE DATE. This section is effective for taxes payable in 2011 and 
23.19 	thereafter.

23.20 	Sec. 2. Minnesota Statutes 2008, section 273.111, subdivision 4, is amended to read:
23.21 		Subd. 4.Determination of value. (a) The value of any real estate described 
23.22 	in subdivision 3 shall upon timely application by the owner, in the manner provided 
23.23 	in subdivision 8, be determined solely with reference to its appropriate agricultural 
23.24 	classification and value notwithstanding sections 272.03, subdivision 8, and 273.11. 
23.25 	Furthermore, the assessor shall not consider any added values resulting from 
23.26 	nonagricultural factors. In order to account for the presence of nonagricultural influences 
23.27 	that may affect the value of agricultural land, the commissioner of revenue shall develop a 
23.28 	fair and uniform method of determining agricultural values for each county in the state 
23.29 	that are consistent with this subdivision. The commissioner shall annually assign the 
23.30 	resulting values to each county, and these values shall be used as the basis for determining 
23.31 	the agricultural value for all properties in the county qualifying for tax deferment under 
23.32 	this section.
23.33 	(b) In the case of property qualifying for tax deferment only under subdivision 3a, 
23.34 	the value shall be based on the value in effect for assessment year 2008, multiplied by 
23.35 	the ratio of the total taxable market value of all property in the county for the year prior 
24.1 	to the current assessment year divided by the total taxable market value of all property 
24.2 	in the county for assessment year 2008.

24.3 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 and 
24.4 	thereafter.

24.5 	Sec. 3. Minnesota Statutes 2008, section 273.1115, subdivision 2, is amended to read:
24.6 		Subd. 2.Requirement. Real estate is entitled to valuation under this section only if 
24.7 	all of the following requirements are met:
24.8 	(1) the property is classified as class 1a, 1b, 2a, or 2b property under section 273.13, 
24.9 	subdivisions 22 and 23, or the property is classified as class 2e under section 273.13, 
24.10 	subdivision 23, and immediately before being classified as class 2e was classified as 
24.11 	class 1a or 1b;
24.12 	(2) the property is at least ten contiguous acres, when the application is filed under 
24.13 	subdivision 3;
24.14 	(3) the owner has filed a completed application for deferment as specified in 
24.15 	subdivision 3 with the county assessor in the county in which the property is located;
24.16 	(4) there are no delinquent taxes on the property; and
24.17 	(5) a covenant on the land restricts its use as provided in subdivision 3, clause (4).

24.18 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
24.19 	thereafter.

24.20 	Sec. 4. Minnesota Statutes 2008, section 273.113, subdivision 1, is amended to read:
24.21 		Subdivision 1.Definition. For the purposes of this section, the following terms 
24.22 	have the meanings given to them:
24.23 	(1) "proposed bovine tuberculosis modified accredited zone" means the modified 
24.24 	accredited zone proposed by the Board of Animal Health under section 35.244; and
24.25 	(2) "located within" means requires that (i) the herd is was kept in the area on the 
24.26 	land for at least a part of calendar year 2007; or (ii) the herd on the land was eradicated or 
24.27 	purchased by a state or federal governmental agency in 2006 for the purpose of controlling 
24.28 	the spread of bovine tuberculosis.

24.29 	EFFECTIVE DATE. This section is effective for taxes payable in 2009.

24.30 	Sec. 5. Minnesota Statutes 2008, section 273.113, subdivision 2, is amended to read:
24.31 		Subd. 2.Eligibility; amount of credit. Agricultural land classified under section 
24.32 	273.13, subdivision 23, located within a proposed bovine tuberculosis modified accredited 
25.1 	zone is eligible for a property tax credit equal to the property tax on the parcel property
25.2 	where the herd had been located, excluding any tax attributable to residential structures. 
25.3 	To begin to qualify for the tax credit, the owner shall file an application with the county by 
25.4 	December 1 of the levy year. The credit must be given for each subsequent taxes payable 
25.5 	year until the credit terminates under subdivision 4. The assessor shall indicate the amount 
25.6 	of the property tax reduction on the property tax statement of each taxpayer receiving a 
25.7 	credit under this section. The credit paid pursuant to this section shall be deducted from 
25.8 	the tax due on the property as provided in section 273.1393.

25.9 	EFFECTIVE DATE. This section is effective for taxes payable in 2009.

25.10 	Sec. 6. Minnesota Statutes 2008, section 273.1231, subdivision 8, is amended to read:
25.11 		Subd. 8.Utility property. "Utility property" means property appraised and 
25.12 	classified for tax purposes by order of the commissioner of revenue under sections 273.33
25.13 	to 273.3711.

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

25.15 	Sec. 7. Minnesota Statutes 2008, section 273.124, subdivision 21, is amended to read:
25.16 		Subd. 21.Trust property; homestead. Real or personal property held by a trustee 
25.17 	under a trust is eligible for classification as homestead property if: the property satisfies 
25.18 	the requirements of paragraph (a), (b), (c), or (d).
25.19 	(1) (a) The grantor or surviving spouse of the grantor of the trust occupies and 
25.20 	uses the property as a homestead;.
25.21 	(2) (b) A relative or surviving relative of the grantor who meets the requirements 
25.22 	of subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1, 
25.23 	paragraph (d), in the case of agricultural property, occupies and uses the property as 
25.24 	a homestead;.
25.25 	(3) (c) A family farm corporation, joint farm venture, limited liability company, or 
25.26 	partnership operating a family farm in which the grantor or the grantor's surviving spouse 
25.27 	is a shareholder, member, or partner rents the property,; and, either (1) a shareholder, 
25.28 	member, or partner of the corporation, joint farm venture, limited liability company, or 
25.29 	partnership occupies and uses the property as a homestead,; or is actively farming, (2) the 
25.30 	property is at least 40 acres, including undivided government lots and correctional 40's, and 
25.31 	a shareholder, member, or partner of the tenant-entity is actively farming the property on 
25.32 	behalf of the corporation, joint farm venture, limited liability company, or partnership; or.
26.1 	(4) (d) A person who has received homestead classification for property taxes 
26.2 	payable in 2000 on the basis of an unqualified legal right under the terms of the trust 
26.3 	agreement to occupy the property as that person's homestead and who continues to use the 
26.4 	property as a homestead; or, a person who received the homestead classification for taxes 
26.5 	payable in 2005 under clause (3)paragraph (c) who does not qualify under clause (3)
26.6 	paragraph (c)  for taxes payable in 2006 or thereafter but who continues to qualify under 
26.7 	clause (3)paragraph (c)  as it existed for taxes payable in 2005.
26.8 	For purposes of this subdivision, "grantor" is defined as the person creating or 
26.9 	establishing a testamentary, inter Vivos, revocable or irrevocable trust by written 
26.10 	instrument or through the exercise of a power of appointment.

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

26.12 	Sec. 8. Minnesota Statutes 2008, section 273.13, subdivision 23, is amended to read:
26.13 		Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural 
26.14 	land that is homesteaded, along with any class 2b rural vacant land that is contiguous to 
26.15 	the class 2a land under the same ownership. The market value of the house and garage 
26.16 	and immediately surrounding one acre of land has the same class rates as class 1a or 1b 
26.17 	property under subdivision 22. The value of the remaining land including improvements 
26.18 	up to the first tier valuation limit of agricultural homestead property has a net class rate 
26.19 	of 0.5 percent of market value. The remaining property over the first tier has a class rate 
26.20 	of one percent of market value. For purposes of this subdivision, the "first tier valuation 
26.21 	limit of agricultural homestead property" and "first tier" means the limit certified under 
26.22 	section 273.11, subdivision 23. 
26.23 	(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that 
26.24 	are agricultural land and buildings. Class 2a property has a net class rate of one percent of 
26.25 	market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a 
26.26 	property may contain property that would otherwise be classified as 2b, including but not 
26.27 	limited to sloughs, wooded wind shelters, acreage abutting ditches, and other similar land 
26.28 	impractical for the assessor to value separately from the rest of the property.
26.29 	An assessor may classify the part of a parcel described in this subdivision that is used 
26.30 	for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
26.31 	(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, 
26.32 	that are unplatted real estate, rural in character and not used for agricultural purposes, 
26.33 	including land used for growing trees for timber, lumber, and wood and wood products, 
26.34 	that is not improved with a structure. The presence of a minor, ancillary nonresidential 
26.35 	structure as defined by the commissioner of revenue does not disqualify the property from 
27.1 	classification under this paragraph. Any parcel of 20 acres or more improved with a 
27.2 	structure that is not a minor, ancillary nonresidential structure must be split-classified, and 
27.3 	ten acres must be assigned to the split parcel containing the structure. Class 2b property 
27.4 	has a net class rate of one percent of market value unless it is part of an agricultural 
27.5 	homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
27.6 	(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 
27.7 	acres statewide per taxpayer that is being managed under a forest management plan that 
27.8 	meets the requirements of chapter 290C, but is not enrolled in the sustainable forest 
27.9 	resource management incentive program. It has a class rate of .65 percent, provided 
27.10 	that the owner of the property must apply to the assessor to receive the reduced class in 
27.11 	order for the property to initially qualify for the reduced rate and provide the information 
27.12 	required by the assessor to verify that the property qualifies for the reduced rate. If the 
27.13 	assessor receives the application and information before May 1 in an assessment year, 
27.14 	the property qualifies beginning with that assessment year. If the assessor receives the 
27.15 	application and information after April 30 in an assessment year, the property may not 
27.16 	qualify until the next assessment year. The commissioner of natural resources must concur 
27.17 	that the land is qualified. The commissioner of natural resources shall annually provide 
27.18 	county assessors verification information on a timely basis. The presence of a minor, 
27.19 	ancillary nonresidential structure as defined by the commissioner of revenue does not 
27.20 	disqualify the property from classification under this paragraph.
27.21 	(e) Agricultural land as used in this section means contiguous acreage of ten 
27.22 	acres or more, used during the preceding year for agricultural purposes. "Agricultural 
27.23 	purposes" as used in this section means the raising, cultivation, drying, or storage of 
27.24 	agricultural products for sale, or the storage of machinery or equipment used in support 
27.25 	of agricultural production by the same farm entity. For a property to be classified as 
27.26 	agricultural based only on the drying or storage of agricultural products, the products 
27.27 	being dried or stored must have been produced by the same farm entity as the entity 
27.28 	operating the drying or storage facility. "Agricultural purposes" also includes enrollment 
27.29 	in the Reinvest in Minnesota program under sections 103F.501 to 103F.535 or the federal 
27.30 	Conservation Reserve Program as contained in Public Law 99-198 or a similar state 
27.31 	or federal conservation program if the property was classified as agricultural (i) under 
27.32 	this subdivision for the assessment year 2002 or (ii) in the year prior to its enrollment. 
27.33 	Agricultural classification shall not be based upon the market value of any residential 
27.34 	structures on the parcel or contiguous parcels under the same ownership. 
27.35 	(f) Real estate of less than ten acres, which is exclusively or intensively used for 
27.36 	raising or cultivating agricultural products, shall be considered as agricultural land. To 
28.1 	qualify under this paragraph, property that includes a residential structure must be used 
28.2 	intensively for one of the following purposes:
28.3 	(i) for drying or storage of grain or storage of machinery or equipment used to 
28.4 	support agricultural activities on other parcels of property operated by the same farming 
28.5 	entity;
28.6 	(ii) as a nursery, provided that only those acres used to produce nursery stock are 
28.7 	considered agricultural land;
28.8 	(iii) for livestock or poultry confinement, provided that land that is used only for 
28.9 	pasturing and grazing does not qualify; or
28.10 	(iv) for market farming; for purposes of this paragraph, "market farming" means the 
28.11 	cultivation of one or more fruits or vegetables or production of animal or other agricultural 
28.12 	products for sale to local markets by the farmer or an organization with which the farmer 
28.13 	is affiliated. 
28.14 	(g) Land shall be classified as agricultural even if all or a portion of the agricultural 
28.15 	use of that property is the leasing to, or use by another person for agricultural purposes. 
28.16 	Classification under this subdivision is not determinative for qualifying under 
28.17 	section 273.111. 
28.18 	(h) The property classification under this section supersedes, for property tax 
28.19 	purposes only, any locally administered agricultural policies or land use restrictions that 
28.20 	define minimum or maximum farm acreage. 
28.21 	(i) The term "agricultural products" as used in this subdivision includes production 
28.22 	for sale of: 
28.23 	(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 
28.24 	animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, 
28.25 	bees, and apiary products by the owner; 
28.26 	(2) fish bred for sale and consumption if the fish breeding occurs on land zoned 
28.27 	for agricultural use; 
28.28 	(3) the commercial boarding of horses if the boarding is done in conjunction with 
28.29 	raising or cultivating agricultural products as defined in clause (1); 
28.30 	(4) property which is owned and operated by nonprofit organizations used for 
28.31 	equestrian activities, excluding racing; 
28.32 	(5) game birds and waterfowl bred and raised for use on a shooting preserve licensed 
28.33 	under section 97A.115; 
28.34 	(6) insects primarily bred to be used as food for animals; 
28.35 	(7) trees, grown for sale as a crop, including short rotation woody crops, and not 
28.36 	sold for timber, lumber, wood, or wood products; and 
29.1 	(8) maple syrup taken from trees grown by a person licensed by the Minnesota 
29.2 	Department of Agriculture under chapter 28A as a food processor. 
29.3 	(j) If a parcel used for agricultural purposes is also used for commercial or industrial 
29.4 	purposes, including but not limited to: 
29.5 	(1) wholesale and retail sales; 
29.6 	(2) processing of raw agricultural products or other goods; 
29.7 	(3) warehousing or storage of processed goods; and 
29.8 	(4) office facilities for the support of the activities enumerated in clauses (1), (2), 
29.9 	and (3), 
29.10 	the assessor shall classify the part of the parcel used for agricultural purposes as class 
29.11 	1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its 
29.12 	use. The grading, sorting, and packaging of raw agricultural products for first sale is 
29.13 	considered an agricultural purpose. A greenhouse or other building where horticultural 
29.14 	or nursery products are grown that is also used for the conduct of retail sales must be 
29.15 	classified as agricultural if it is primarily used for the growing of horticultural or nursery 
29.16 	products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of 
29.17 	those products. Use of a greenhouse or building only for the display of already grown 
29.18 	horticultural or nursery products does not qualify as an agricultural purpose. 
29.19 	(k) The assessor shall determine and list separately on the records the market value 
29.20 	of the homestead dwelling and the one acre of land on which that dwelling is located. If 
29.21 	any farm buildings or structures are located on this homesteaded acre of land, their market 
29.22 	value shall not be included in this separate determination. 
29.23 	(k) (l) Class 2d airport landing area consists of a landing area or public access area 
29.24 	of a privately owned public use airport. It has a class rate of one percent of market value. 
29.25 	To qualify for classification under this paragraph, a privately owned public use airport 
29.26 	must be licensed as a public airport under section 360.018. For purposes of this paragraph, 
29.27 	"landing area" means that part of a privately owned public use airport properly cleared, 
29.28 	regularly maintained, and made available to the public for use by aircraft and includes 
29.29 	runways, taxiways, aprons, and sites upon which are situated landing or navigational aids. 
29.30 	A landing area also includes land underlying both the primary surface and the approach 
29.31 	surfaces that comply with all of the following: 
29.32 	(i) the land is properly cleared and regularly maintained for the primary purposes of 
29.33 	the landing, taking off, and taxiing of aircraft; but that portion of the land that contains 
29.34 	facilities for servicing, repair, or maintenance of aircraft is not included as a landing area; 
29.35 	(ii) the land is part of the airport property; and 
29.36 	(iii) the land is not used for commercial or residential purposes. 
30.1 	The land contained in a landing area under this paragraph must be described and certified 
30.2 	by the commissioner of transportation. The certification is effective until it is modified, 
30.3 	or until the airport or landing area no longer meets the requirements of this paragraph. 
30.4 	For purposes of this paragraph, "public access area" means property used as an aircraft 
30.5 	parking ramp, apron, or storage hangar, or an arrival and departure building in connection 
30.6 	with the airport. 
30.7 	(l) (m) Class 2e consists of land with a commercial aggregate deposit that is not 
30.8 	actively being mined and is not otherwise classified as class 2a or 2b, provided that the 
30.9 	land is not located in a county that has elected to opt-out of the aggregate preservation 
30.10 	program as provided in section 273.1115, subdivision 6. It has a class rate of one percent 
30.11 	of market value. To qualify for classification under this paragraph, the property must be 
30.12 	at least ten contiguous acres in size and the owner of the property must record with the 
30.13 	county recorder of the county in which the property is located an affidavit containing:
30.14 	(1) a legal description of the property;
30.15 	(2) a disclosure that the property contains a commercial aggregate deposit that is not 
30.16 	actively being mined but is present on the entire parcel enrolled;
30.17 	(3) documentation that the conditional use under the county or local zoning 
30.18 	ordinance of this property is for mining; and
30.19 	(4) documentation that a permit has been issued by the local unit of government 
30.20 	or the mining activity is allowed under local ordinance. The disclosure must include a 
30.21 	statement from a registered professional geologist, engineer, or soil scientist delineating 
30.22 	the deposit and certifying that it is a commercial aggregate deposit.
30.23 	For purposes of this section and section 273.1115, "commercial aggregate deposit" 
30.24 	means a deposit that will yield crushed stone or sand and gravel that is suitable for use 
30.25 	as a construction aggregate; and "actively mined" means the removal of top soil and 
30.26 	overburden in preparation for excavation or excavation of a commercial deposit.
30.27 	(m) (n) When any portion of the property under this subdivision or subdivision 22 
30.28 	begins to be actively mined, the owner must file a supplemental affidavit within 60 days 
30.29 	from the day any aggregate is removed stating the number of acres of the property that is 
30.30 	actively being mined. The acres actively being mined must be (1) valued and classified 
30.31 	under subdivision 24 in the next subsequent assessment year, and (2) removed from the 
30.32 	aggregate resource preservation property tax program under section 273.1115, if the 
30.33 	land was enrolled in that program. Copies of the original affidavit and all supplemental 
30.34 	affidavits must be filed with the county assessor, the local zoning administrator, and the 
30.35 	Department of Natural Resources, Division of Land and Minerals. A supplemental 
30.36 	affidavit must be filed each time a subsequent portion of the property is actively mined, 
31.1 	provided that the minimum acreage change is five acres, even if the actual mining activity 
31.2 	constitutes less than five acres.
31.3 	(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are 
31.4 	not rules, are exempt from the rulemaking provisions of chapter 14, and the provisions 
31.5 	in section 14.386 concerning exempt rules do not apply.

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

31.7 	Sec. 9. Minnesota Statutes 2008, section 273.13, subdivision 25, is amended to read:
31.8 		Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more 
31.9 	units and used or held for use by the owner or by the tenants or lessees of the owner 
31.10 	as a residence for rental periods of 30 days or more, excluding property qualifying for 
31.11 	class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other 
31.12 	than hospitals exempt under section 272.02, and contiguous property used for hospital 
31.13 	purposes, without regard to whether the property has been platted or subdivided. The 
31.14 	market value of class 4a property has a class rate of 1.25 percent. 
31.15 	(b) Class 4b includes: 
31.16 	(1) residential real estate containing less than four units that does not qualify as class 
31.17 	4bb, other than seasonal residential recreational property; 
31.18 	(2) manufactured homes not classified under any other provision; 
31.19 	(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead 
31.20 	farm classified under subdivision 23, paragraph (b) containing two or three units; and 
31.21 	(4) unimproved property that is classified residential as determined under subdivision 
31.22 	33. 
31.23 	The market value of class 4b property has a class rate of 1.25 percent. 
31.24 	(c) Class 4bb includes: 
31.25 	(1) nonhomestead residential real estate containing one unit, other than seasonal 
31.26 	residential recreational property; and 
31.27 	(2) a single family dwelling, garage, and surrounding one acre of property on a 
31.28 	nonhomestead farm classified under subdivision 23, paragraph (b). 
31.29 	Class 4bb property has the same class rates as class 1a property under subdivision 22. 
31.30 	Property that has been classified as seasonal residential recreational property at 
31.31 	any time during which it has been owned by the current owner or spouse of the current 
31.32 	owner does not qualify for class 4bb. 
31.33 	(d) Class 4c property includes: 
31.34 	(1) except as provided in subdivision 22, paragraph (c), or subdivision 23, paragraph 
31.35 	(b), clause (1), real and personal property devoted to temporary and seasonal residential 
32.1 	occupancy for recreation purposes, including real and personal property devoted to 
32.2 	temporary and seasonal residential occupancy for recreation purposes and not devoted to 
32.3 	commercial purposes for more than 250 days in the year preceding the year of assessment. 
32.4 	For purposes of this clause, property is devoted to a commercial purpose on a specific 
32.5 	day if any portion of the property is used for residential occupancy, and a fee is charged 
32.6 	for residential occupancy. Class 4c property under this clause must contain three or 
32.7 	more rental units. A "rental unit" is defined as a cabin, condominium, townhouse, 
32.8 	sleeping room, or individual camping site equipped with water and electrical hookups 
32.9 	for recreational vehicles. Class 4c property under this clause must provide recreational 
32.10 	activities such as renting ice fishing houses, boats and motors, snowmobiles, downhill or 
32.11 	cross-country ski equipment; provide marina services, launch services, or guide services; 
32.12 	or sell bait and fishing tackle. A camping pad offered for rent by a property that otherwise 
32.13 	qualifies for class 4c under this clause is also class 4c under this clause regardless of the 
32.14 	term of the rental agreement, as long as the use of the camping pad does not exceed 250 
32.15 	days. In order for a property to be classified as class 4c, seasonal residential recreational 
32.16 	for commercial purposes under this clause, at least 40 percent of the annual gross lodging 
32.17 	receipts related to the property must be from business conducted during 90 consecutive 
32.18 	days and either (i) at least 60 percent of all paid bookings by lodging guests during the 
32.19 	year must be for periods of at least two consecutive nights; or (ii) at least 20 percent 
32.20 	of the annual gross receipts must be from charges for rental of fish houses, boats and 
32.21 	motors, snowmobiles, downhill or cross-country ski equipment, or charges for marina 
32.22 	services, launch services, and guide services, or the sale of bait and fishing tackle. For 
32.23 	purposes of this determination, a paid booking of five or more nights shall be counted as 
32.24 	two bookings. Class 4c property classified under this clause also includes commercial 
32.25 	use real property used exclusively for recreational purposes in conjunction with other 
32.26 	class 4c property classified under this clause and devoted to temporary and seasonal 
32.27 	residential occupancy for recreational purposes, up to a total of two acres, provided the 
32.28 	property is not devoted to commercial recreational use for more than 250 days in the year 
32.29 	preceding the year of assessment and is located within two miles of the class 4c property 
32.30 	with which it is used. Owners of real and personal property devoted to temporary and 
32.31 	seasonal residential occupancy for recreation purposes and all or a portion of which was 
32.32 	devoted to commercial purposes for not more than 250 days in the year preceding the 
32.33 	year of assessment desiring classification as class 4c, must submit a declaration to the 
32.34 	assessor designating the cabins or units occupied for 250 days or less in the year preceding 
32.35 	the year of assessment by January 15 of the assessment year. Those cabins or units and 
32.36 	a proportionate share of the land on which they are located must be designated class 
33.1 	4c under this clause  as otherwise provided. The remainder of the cabins or units and a 
33.2 	proportionate share of the land on which they are located will be designated as class 3a. 
33.3 	The owner of property desiring designation as class 4c property under this clause must 
33.4 	provide guest registers or other records demonstrating that the units for which class 4c 
33.5 	designation is sought were not occupied for more than 250 days in the year preceding the 
33.6 	assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar, 
33.7 	(3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility 
33.8 	operated on a commercial basis not directly related to temporary and seasonal residential 
33.9 	occupancy for recreation purposes does not qualify for class 4c; 
33.10 	(2) qualified property used as a golf course if: 
33.11 	(i) it is open to the public on a daily fee basis. It may charge membership fees or 
33.12 	dues, but a membership fee may not be required in order to use the property for golfing, 
33.13 	and its green fees for golfing must be comparable to green fees typically charged by 
33.14 	municipal courses; and 
33.15 	(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d). 
33.16 	A structure used as a clubhouse, restaurant, or place of refreshment in conjunction 
33.17 	with the golf course is classified as class 3a property; 
33.18 	(3) real property up to a maximum of three acres of land owned and used by a 
33.19 	nonprofit community service oriented organization and that is not used for residential 
33.20 	purposes on either a temporary or permanent basis, qualifies for class 4c provided that 
33.21 	it meets either of the following: 
33.22 	(i) the property is not used for a revenue-producing activity for more than six days 
33.23 	in the calendar year preceding the year of assessment; or 
33.24 	(ii) the organization makes annual charitable contributions and donations at least 
33.25 	equal to the property's previous year's property taxes and the property is allowed to be 
33.26 	used for public and community meetings or events for no charge, as appropriate to the 
33.27 	size of the facility. 
33.28 	For purposes of this clause, 
33.29 	(A) "charitable contributions and donations" has the same meaning as lawful 
33.30 	gambling purposes under section 349.12, subdivision 25, excluding those purposes 
33.31 	relating to the payment of taxes, assessments, fees, auditing costs, and utility payments; 
33.32 	(B) "property taxes" excludes the state general tax; 
33.33 	(C) a "nonprofit community service oriented organization" means any corporation, 
33.34 	society, association, foundation, or institution organized and operated exclusively for 
33.35 	charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 
34.1 	federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 
34.2 	Revenue Code; and 
34.3 	(D) "revenue-producing activities" shall include but not be limited to property or that 
34.4 	portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 
34.5 	liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 
34.6 	alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 
34.7 	insurance business, or office or other space leased or rented to a lessee who conducts a 
34.8 	for-profit enterprise on the premises. 
34.9 	Any portion of the property not qualifying under either item (i) which is used for 
34.10 	revenue-producing activities for more than six days in the calendar year preceding the 
34.11 	year of assessment shall be assessed as or (ii) is class 3a. The use of the property for social 
34.12 	events open exclusively to members and their guests for periods of less than 24 hours, 
34.13 	when an admission is not charged nor any revenues are received by the organization shall 
34.14 	not be considered a revenue-producing activity. 
34.15 	The organization shall maintain records of its charitable contributions and donations 
34.16 	and of public meetings and events held on the property and make them available upon 
34.17 	request any time to the assessor to ensure eligibility. An organization meeting the 
34.18 	requirement under item (ii) must file an application by May 1 with the assessor for 
34.19 	eligibility for the current year's assessment. The commissioner shall prescribe a uniform 
34.20 	application form and instructions; 
34.21 	(4) postsecondary student housing of not more than one acre of land that is owned by 
34.22 	a nonprofit corporation organized under chapter 317A and is used exclusively by a student 
34.23 	cooperative, sorority, or fraternity for on-campus housing or housing located within two 
34.24 	miles of the border of a college campus; 
34.25 	(5) manufactured home parks as defined in section 327.14, subdivision 3; 
34.26 	(6) real property that is actively and exclusively devoted to indoor fitness, health, 
34.27 	social, recreational, and related uses, is owned and operated by a not-for-profit corporation, 
34.28 	and is located within the metropolitan area as defined in section 473.121, subdivision 2; 
34.29 	(7) a leased or privately owned noncommercial aircraft storage hangar not exempt 
34.30 	under section 272.01, subdivision 2, and the land on which it is located, provided that: 
34.31 	(i) the land is on an airport owned or operated by a city, town, county, Metropolitan 
34.32 	Airports Commission, or group thereof; and 
34.33 	(ii) the land lease, or any ordinance or signed agreement restricting the use of the 
34.34 	leased premise, prohibits commercial activity performed at the hangar. 
35.1 	If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must 
35.2 	be filed by the new owner with the assessor of the county where the property is located 
35.3 	within 60 days of the sale; 
35.4 	(8) a privately owned noncommercial aircraft storage hangar not exempt under 
35.5 	section 272.01, subdivision 2, and the land on which it is located, provided that: 
35.6 	(i) the land abuts a public airport; and 
35.7 	(ii) the owner of the aircraft storage hangar provides the assessor with a signed 
35.8 	agreement restricting the use of the premises, prohibiting commercial use or activity 
35.9 	performed at the hangar; and 
35.10 	(9) residential real estate, a portion of which is used by the owner for homestead 
35.11 	purposes, and that is also a place of lodging, if all of the following criteria are met: 
35.12 	(i) rooms are provided for rent to transient guests that generally stay for periods 
35.13 	of 14 or fewer days; 
35.14 	(ii) meals are provided to persons who rent rooms, the cost of which is incorporated 
35.15 	in the basic room rate; 
35.16 	(iii) meals are not provided to the general public except for special events on fewer 
35.17 	than seven days in the calendar year preceding the year of the assessment; and 
35.18 	(iv) the owner is the operator of the property.
35.19 	The market value subject to the 4c classification under this clause is limited to five rental 
35.20 	units. Any rental units on the property in excess of five, must be valued and assessed as 
35.21 	class 3a. The portion of the property used for purposes of a homestead by the owner must 
35.22 	be classified as class 1a property under subdivision 22; and
35.23 	(10) real property up to a maximum of three acres and operated as a restaurant 
35.24 	as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake 
35.25 	as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B) 
35.26 	is either devoted to commercial purposes for not more than 250 consecutive days, or 
35.27 	receives at least 60 percent of its annual gross receipts from business conducted during 
35.28 	four consecutive months. Gross receipts from the sale of alcoholic beverages must be 
35.29 	included in determining the property's qualification under subitem (B). The property's 
35.30 	primary business must be as a restaurant and not as a bar. Gross receipts from gift shop 
35.31 	sales located on the premises must be excluded. Owners of real property desiring 4c 
35.32 	classification under this clause must submit an annual declaration to the assessor by 
35.33 	February 1 of the current assessment year, based on the property's relevant information for 
35.34 	the preceding assessment year. 
35.35 	Class 4c property has a class rate of 1.5 percent of market value, except that (i) each 
35.36 	parcel of seasonal residential recreational property not used for commercial purposes has 
36.1 	the same class rates as class 4bb property, (ii) manufactured home parks assessed under 
36.2 	clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal 
36.3 	residential recreational property has a class rate of one percent for the first $500,000 of 
36.4 	market value, and 1.25 percent for the remaining market value, (iv) the market value of 
36.5 	property described in clause (4) has a class rate of one percent, (v) the market value of 
36.6 	property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi) 
36.7 	that portion of the market value of property in clause (9) qualifying for class 4c property 
36.8 	has a class rate of 1.25 percent. 
36.9 	(e) Class 4d property is qualifying low-income rental housing certified to the assessor 
36.10 	by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion 
36.11 	of the units in the building qualify as low-income rental housing units as certified under 
36.12 	section 273.128, subdivision 3, only the proportion of qualifying units to the total number 
36.13 	of units in the building qualify for class 4d. The remaining portion of the building shall be 
36.14 	classified by the assessor based upon its use. Class 4d also includes the same proportion of 
36.15 	land as the qualifying low-income rental housing units are to the total units in the building. 
36.16 	For all properties qualifying as class 4d, the market value determined by the assessor must 
36.17 	be based on the normal approach to value using normal unrestricted rents. 
36.18 	Class 4d property has a class rate of 0.75 percent. 

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

36.20 	Sec. 10. Minnesota Statutes 2008, section 273.13, subdivision 33, is amended to read:
36.21 		Subd. 33.Classification of unimproved property. (a) All real property that is not 
36.22 	improved with a structure must be classified according to its current use.
36.23 	(b) Except as provided in subdivision 23, paragraph (c) or (d), real property that is 
36.24 	not improved with a structure and for which there is no identifiable current use must be 
36.25 	classified according to its highest and best use permitted under the local zoning ordinance. 
36.26 	If the ordinance permits more than one use, the land must be classified according to the 
36.27 	highest and best use permitted under the ordinance. If no such ordinance exists, the 
36.28 	assessor shall consider the most likely potential use of the unimproved land based upon 
36.29 	the use made of surrounding land or land in proximity to the unimproved land.

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

36.31 	Sec. 11. Minnesota Statutes 2008, section 273.33, subdivision 2, is amended to read:
36.32 		Subd. 2. Listing and assessment by commissioner. The personal property, 
36.33 	consisting of the pipeline system of mains, pipes, and equipment attached thereto, of 
37.1 	pipeline companies and others engaged in the operations or business of transporting natural 
37.2 	gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed with and 
37.3 	assessed by the commissioner of revenue and the values provided to the city or county 
37.4 	assessor by order. This subdivision shall not apply to the assessment of the products 
37.5 	transported through the pipelines nor to the lines of local commercial gas companies 
37.6 	engaged primarily in the business of distributing gas to consumers at retail nor to pipelines 
37.7 	used by the owner thereof to supply natural gas or other petroleum products exclusively 
37.8 	for such owner's own consumption and not for resale to others. If more than 85 percent 
37.9 	of the natural gas or other petroleum products actually transported over the pipeline is 
37.10 	used for the owner's own consumption and not for resale to others, then this subdivision 
37.11 	shall not apply; provided, however, that in that event, the pipeline shall be assessed in 
37.12 	proportion to the percentage of gas actually transported over such pipeline that is not used 
37.13 	for the owner's own consumption. On or before June 30 August 1, the commissioner shall 
37.14 	certify to the auditor of each county, the amount of such personal property assessment 
37.15 	against each company in each district in which such property is located. 

37.16 	EFFECTIVE DATE. This section is effective for assessment year 2009 and 
37.17 	thereafter.

37.18 	Sec. 12. Minnesota Statutes 2008, section 273.37, subdivision 2, is amended to read:
37.19 		Subd. 2. Listing and assessment by commissioner. Transmission lines of less 
37.20 	than 69 kv, transmission lines of 69 kv and above located in an unorganized township, 
37.21 	and distribution lines, and equipment attached thereto, having a fixed situs outside the 
37.22 	corporate limits of cities except distribution lines taxed as provided in sections 273.40 and 
37.23 	273.41, shall be listed with and assessed by the commissioner of revenue in the county 
37.24 	where situated and the values provided to the city or county assessor by order. The 
37.25 	commissioner shall assess such property at the percentage of market value fixed by law; 
37.26 	and, on or before June 30 August 1, shall certify to the auditor of each county in which 
37.27 	such property is located the amount of the assessment made against each company and 
37.28 	person owning such property. 

37.29 	EFFECTIVE DATE. This section is effective for assessment year 2009 and 
37.30 	thereafter.

37.31 	Sec. 13. Minnesota Statutes 2008, section 274.13, subdivision 2, is amended to read:
37.32 		Subd. 2.Special board; delegated duties. The board of equalization for any 
37.33 	county may appoint a special board of equalization and may delegate to it the powers and 
38.1 	duties in subdivision 1. The special board of equalization shall serve at the direction and 
38.2 	discretion of the appointing county board, subject to the restrictions imposed by law on 
38.3 	the appointing board. The appointing board may determine the number of members to be 
38.4 	appointed to the special board, the compensation and expenses to be paid, and the term of 
38.5 	office of each member. At least one member of the special board of equalization must be 
38.6 	an appraiser, realtor, or other person familiar with property valuations in the county. The 
38.7 	county auditor is a nonvoting member and serves as the recorder for the special board.
38.8 	The special board is subject to the quorum requirements for county boards and the training 
38.9 	requirements for county boards in section 274.135, subdivision 2.

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

38.11 	Sec. 14. Minnesota Statutes 2008, section 274.135, subdivision 3, is amended to read:
38.12 		Subd. 3. Proof of compliance; transfer of duties. (a) Any county that 
38.13 	conducts county boards of appeal and equalization meetings must provide proof to the 
38.14 	commissioner by December 1, 2009, and each year thereafter, that it is in compliance 
38.15 	with the requirements of subdivision 2. Beginning in 2009, this notice must also verify 
38.16 	that there was a quorum of voting members at each meeting of the board of appeal and 
38.17 	equalization in the current year. A county that does not comply with these requirements 
38.18 	is deemed to have transferred its board of appeal and equalization powers to the special 
38.19 	board of equalization appointed pursuant to section 274.13, subdivision 2, beginning 
38.20 	with the following year's assessment and continuing unless the powers are reinstated 
38.21 	under paragraph (c). A county that does not comply with the requirements of subdivision 
38.22 	2 and has not appointed a special board of equalization shall appoint a special board of 
38.23 	equalization before the following year's assessment. 
38.24 	(b) The county shall notify the taxpayers when the board of appeal and equalization 
38.25 	for a county has been transferred to the special board of equalization under this subdivision 
38.26 	and, prior to the meeting time of the special board of equalization, the county shall make 
38.27 	available to those taxpayers a procedure for a review of the assessments, including, but 
38.28 	not limited to, open book meetings. This alternate review process must take place in 
38.29 	April and May. 
38.30 	(c) A county board whose powers are transferred to the special board of equalization 
38.31 	under this subdivision may be reinstated by resolution of the county board and upon proof 
38.32 	of compliance with the requirements of subdivision 2. The resolution and proofs must be 
38.33 	provided to the commissioner by December 1 in order to be effective for the following 
38.34 	year's assessment. 
39.1 	(d) If a person who was entitled to appeal to the county board of appeal and 
39.2 	equalization or to the county special board of equalization is not able to do so in a 
39.3 	particular year because the county board or special board did not meet the quorum and 
39.4 	training requirements in this section and section 274.13, or because the special board 
39.5 	was not appointed, that person may instead appeal to the commissioner of revenue, 
39.6 	provided that the appeal is received by the commissioner prior to August 1. The appeal 
39.7 	is not subject to either chapter 14 or section 270C.92. The commissioner must issue 
39.8 	an appropriate order to the county assessor in response to each timely appeal, either 
39.9 	upholding or changing the valuation or classification of the property. Prior to October 1 of 
39.10 	each year, the commissioner must charge and bill the county where the property is located 
39.11 	$500 for each tax parcel covered by an order issued under this paragraph in that year. 
39.12 	Amounts received by the commissioner under this paragraph must be deposited in the 
39.13 	state's general fund. If payment of a billed amount is not received by the commissioner 
39.14 	before December 1 of the year when billed, the commissioner must deduct that unpaid 
39.15 	amount from any state aid the commissioner would otherwise pay to the county under 
39.16 	chapter 477A in the next year. Late payments may either be returned to the county 
39.17 	uncashed and undeposited or may be accepted. If a late payment is accepted, the state aid 
39.18 	paid to the county under chapter 477A must be adjusted within 12 months to eliminate any 
39.19 	reduction that occurred because the payment was late. Amounts needed to make these 
39.20 	adjustments are included in the appropriation under section 477A.03, subdivision 2.

39.21 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
39.22 	thereafter.

39.23 	Sec. 15. Minnesota Statutes 2008, section 274.14, is amended to read:
39.24 	274.14 LENGTH OF SESSION; RECORD.
39.25 	The board may must meet on anyafter the second Friday in June on at least one 
39.26 	meeting day and may meet for up to ten consecutive meeting days in June, after the 
39.27 	second Friday in June. The actual meeting dates must be contained on the valuation 
39.28 	notices mailed to each property owner in the county as provided in section 273.121. For 
39.29 	this purpose, "meeting days" is defined as any day of the week excluding Sunday. At 
39.30 	the board's discretion, "meeting days" may include Saturday. No action taken by the 
39.31 	county board of review after June 30 is valid, except for corrections permitted in sections 
39.32 	273.01 and 274.01. The county auditor shall keep an accurate record of the proceedings 
39.33 	and orders of the board. The record must be published like other proceedings of county 
40.1 	commissioners. A copy of the published record must be sent to the commissioner of 
40.2 	revenue, with the abstract of assessment required by section 274.16.
40.3 	For counties that conduct either regular board of review meetings or open book 
40.4 	meetings, at least one of the meeting days must include a meeting that does not end 
40.5 	before 7:00 p.m. For counties that require taxpayer appointments for the board of review, 
40.6 	appointments must include some available times that extend until at least 7:00 p.m. The 
40.7 	county may have a Saturday meeting in lieu of, or in addition to, the extended meeting 
40.8 	times under this paragraph.

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

40.10 	Sec. 16. Minnesota Statutes 2008, section 274.175, is amended to read:
40.11 	274.175 VALUES FINALIZED.
40.12 	The assessments recorded by the county assessor and the county auditor under 
40.13 	sections 273.124, subdivision 9; 274.16; 274.17; or other law for real and personal 
40.14 	property are final on July 1 of the assessment year, except for property added to the 
40.15 	assessment rolls under section 272.02, subdivision 38, and assessments certified to the 
40.16 	auditor under sections 273.33, subdivision 2, and 273.37, subdivision 2, or deleted 
40.17 	because of tax forfeiture pursuant to chapter 281. No changes in value may be made 
40.18 	after July 1 of the assessment year, except for corrections permitted in sections 273.01
40.19 	and 274.01, or assessments certified to the auditor under sections 273.33, subdivision 2, 
40.20 	and 273.37, subdivision 2.  

40.21 	EFFECTIVE DATE. This section is effective for assessment year 2009 and 
40.22 	thereafter.

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

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

43.30 	Sec. 18. Minnesota Statutes 2008, section 275.71, subdivision 4, is amended to read:
43.31 		Subd. 4.Adjusted levy limit base.  For taxes levied in 2008 through 2010, the 
43.32 	adjusted levy limit base is equal to the levy limit base computed under subdivision 2 
43.33 	or section 275.72, multiplied by:
43.34 	(1) one plus the lesser of 3.9 percent or the percentage growth in the implicit price 
43.35 	deflator;
44.1 	(2) one plus a percentage equal to 50 percent of the percentage increase in the number 
44.2 	of households, if any, for the most recent 12-month period for which data is available; and
44.3 	(3) one plus a percentage equal to 50 percent of the percentage increase in the 
44.4 	taxable market value of the jurisdiction due to new construction of class 3 property, as 
44.5 	defined in section 273.13, subdivision 4 24, except for state-assessed utility and railroad 
44.6 	property, for the most recent year for which data is available.

44.7 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 through 
44.8 	2011.

44.9 	Sec. 19. Minnesota Statutes 2008, section 290C.06, is amended to read:
44.10 	290C.06 CALCULATION OF AVERAGE ESTIMATED MARKET VALUE; 
44.11 	TIMBERLAND MANAGED FOREST LAND.
44.12 	The commissioner shall annually calculate a statewide average estimated market 
44.13 	value per acre for class 2b timberland2c managed forest land under section 273.13, 
44.14 	subdivision 23, paragraph (b).

44.15 	EFFECTIVE DATE. This section is effective for calculations made in 2010 and 
44.16 	thereafter.

44.17 	Sec. 20. Minnesota Statutes 2008, section 290C.07, is amended to read:
44.18 	290C.07 CALCULATION OF INCENTIVE PAYMENT.
44.19 	An approved claimant under the sustainable forest incentive program is eligible to 
44.20 	receive an annual payment. The payment shall equal the greater of: 
44.21 	(1) the difference between the property tax that would be paid on the land using the 
44.22 	previous year's statewide average total township tax rate and the a class rate for class 2b 
44.23 	timberland under section 273.13, subdivision 23, paragraph (b) of one percent, if the land 
44.24 	were valued at (i) the average statewide timberland managed forest land market value per 
44.25 	acre calculated under section 290C.06, and (ii) the average statewide timberland managed 
44.26 	forest land current use value per acre calculated under section 290C.02, subdivision 5; or 
44.27 	(2) two-thirds of the property tax amount determined by using the previous 
44.28 	year's statewide average total township tax rate, the estimated market value per acre as 
44.29 	calculated in section 290C.06, and the a class rate for 2b timberland under section 273.13, 
44.30 	subdivision 23, paragraph (b) of one percent, provided that the payment shall be no less 
44.31 	than $7 per acre for each acre enrolled in the sustainable forest incentive program. 

45.1 	EFFECTIVE DATE. This section is effective for calculations made in 2010 and 
45.2 	thereafter.

45.3 	Sec. 21. Minnesota Statutes 2008, section 423A.02, subdivision 1b, is amended to read:
45.4 		Subd. 1b.Additional amortization state aid. (a) Annually, on October 1, the 
45.5 	commissioner of revenue shall allocate the additional amortization state aid transferred 
45.6 	under section 69.021, subdivision 11, to: 
45.7 	(1) all police or salaried firefighters relief associations governed by and in full 
45.8 	compliance with the requirements of section 69.77, that had an unfunded actuarial accrued 
45.9 	liability in the actuarial valuation prepared under sections 356.215 and 356.216 as of the 
45.10 	preceding December 31; 
45.11 	(2) all local police or salaried firefighter consolidation accounts governed by chapter 
45.12 	353A that are certified by the executive director of the public employees retirement 
45.13 	association as having for the current fiscal year an additional municipal contribution 
45.14 	amount under section 353A.09, subdivision 5, paragraph (b), and that have implemented 
45.15 	section 353A.083, subdivision 1, if the effective date of the consolidation preceded May 
45.16 	24, 1993, and that have implemented section 353A.083, subdivision 2, if the effective date 
45.17 	of the consolidation preceded June 1, 1995; and 
45.18 	(3) the municipalities that are required to make an additional municipal contribution 
45.19 	under section 353.665, subdivision 8, for the duration of the required additional 
45.20 	contribution. 
45.21 	(b) The commissioner shall allocate the state aid on the basis of the proportional share 
45.22 	of the relief association or consolidation account of the total unfunded actuarial accrued 
45.23 	liability of all recipient relief associations and consolidation accounts as of December 31, 
45.24 	1993, for relief associations, and as of June 30, 1994, for consolidation accounts.
45.25 	(c) Beginning October 1, 2000, and annually thereafter, the commissioner shall 
45.26 	allocate the state aid, including any state aid in excess of the limitation in subdivision 
45.27 	4, on the following basis:
45.28 	(1) 64.5 percent to the municipalities to which section 353.665, subdivision 
45.29 	8, paragraph (b), or 353A.09, subdivision 5, paragraph (b), apply for distribution in 
45.30 	accordance with paragraph (b) and subject to the limitation in subdivision 4; 
45.31 	(2) 34.2 percent to the city of Minneapolis to fund any unfunded actuarial accrued 
45.32 	liability in the actuarial valuation prepared under sections 356.215 and 356.216 as of the 
45.33 	preceding December 31 for the Minneapolis Police Relief Association or the Minneapolis 
45.34 	Fire Department Relief Association; and 
46.1 	(3) 1.3 percent to the city of Virginia to fund any unfunded actuarial accrued liability 
46.2 	in the actuarial valuation prepared under sections 356.215 and 356.216 as of the preceding 
46.3 	December 31 for the Virginia Fire Department Relief Association. 
46.4 	If there is no unfunded actuarial accrued liability in both the Minneapolis Police 
46.5 	Relief Association and the Minneapolis Fire Department Relief Association as disclosed 
46.6 	in the most recent actuarial valuations for the relief associations prepared under sections 
46.7 	356.215 and 356.216, the commissioner shall allocate that 34.2 percent of the aid as 
46.8 	follows: 49 percent to the Teachers Retirement Association, 21 percent to the St. Paul 
46.9 	Teachers Retirement Fund Association, and 30 percent as additional funding to support 
46.10 	minimum fire state aid for volunteer firefighters relief associations. If there is no unfunded 
46.11 	actuarial accrued liability in the Virginia Fire Department Relief Association as disclosed 
46.12 	in the most recent actuarial valuation for the relief association prepared under sections 
46.13 	356.215 and 356.216, the commissioner shall allocate that 1.3 percent of the aid as 
46.14 	follows: 49 percent to the Teachers Retirement Association, 21 percent to the St. Paul 
46.15 	Teachers Retirement Fund Association, and 30 percent as additional funding to support 
46.16 	minimum fire state aid for volunteer firefighters relief associations. Upon the final 
46.17 	payment to municipalities required by section 353.665, subdivision 8, paragraph (b), 
46.18 	or 353A.09, subdivision 5, paragraph (b), the commissioner shall allocate that 64.5 
46.19 	percent of the aid as follows: 20 percent to the St. Paul Teachers Retirement Fund 
46.20 	Association, 20 percent to the city of Minneapolis to fund any unfunded actuarial accrued 
46.21 	liability in the actuarial valuation proposed under sections 356.215 and 356.216 as of the 
46.22 	preceding December 31 for the Minneapolis Police Relief Association or the Minneapolis 
46.23 	Firefighters Relief Association, 20 percent for the city of Duluth to pay for any costs 
46.24 	associated with the police and firefighters pensions, and 40 percent as additional funding to 
46.25 	support minimum fire state aid for volunteer firefighters relief associations. The allocation 
46.26 	must be made by the commissioner at the same time and under the same procedures 
46.27 	as specified in subdivision 3. With respect to the St. Paul Teachers Retirement Fund 
46.28 	Association, annually, beginning on July 1, 2005, if the applicable teacher's association 
46.29 	five-year average time-weighted rate of investment return does not equal or exceed the 
46.30 	performance of a composite portfolio assumed passively managed (indexed) invested ten 
46.31 	percent in cash equivalents, 60 percent in bonds and similar debt securities, and 30 percent 
46.32 	in domestic stock calculated using the formula under section 11A.04, clause (11), the aid 
46.33 	allocation to that retirement fund under this section ceases until the five-year annual rate 
46.34 	of investment return equals or exceeds the performance of that composite portfolio. 
47.1 	(d) The amounts required under this subdivision are the amounts annually 
47.2 	appropriated to the commissioner of revenue under section 69.021, subdivision 11, 
47.3 	paragraph (e).

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

47.6 	Sec. 22. Minnesota Statutes 2008, section 423A.02, subdivision 3, is amended to read:
47.7 		Subd. 3.Reallocation of amortization or supplementary amortization state 
47.8 	aid. (a) Seventy percent of the difference between $5,720,000 and the current year 
47.9 	amortization aid or and supplemental amortization aid distributed under subdivisions 1 
47.10 	and 1a that is not distributed for any reason to a municipality for use by a local police 
47.11 	or salaried fire relief association must be distributed by the commissioner of revenue 
47.12 	according to this paragraph. The commissioner shall distribute 70 percent of the amounts 
47.13 	derived under this paragraph to the Teachers Retirement Association and 30 percent to the 
47.14 	St. Paul Teachers Retirement Fund Association to fund the unfunded actuarial accrued 
47.15 	liabilities of the respective funds. These payments shall be made on or before June 30 
47.16 	each fiscal year. The amount required under this paragraph is appropriated annually from 
47.17 	the general fund to the commissioner of revenue. If the St. Paul Teachers Retirement Fund 
47.18 	Association becomes fully funded, its eligibility for this aid ceases. Amounts remaining 
47.19 	in the undistributed balance account at the end of the biennium if aid eligibility ceases 
47.20 	cancel to the general fund.
47.21 	(b) In order to receive amortization and supplementary amortization aid under 
47.22 	paragraph (a), Independent School District No. 625, St. Paul, must make contributions 
47.23 	to the St. Paul Teachers Retirement Fund Association in accordance with the following 
47.24 	schedule:

47.25		Fiscal Year
		Amount
		
47.26		1996
	$
	0
		
47.27		1997
	$
	0
		
47.28		1998
	$
	200,000
		
47.29		1999
	$
	400,000
		
47.30		2000
	$
	600,000
		
47.31		2001 and thereafter
	$
	800,000
		
47.32 	(c) Special School District No. 1, Minneapolis, and the city of Minneapolis must 
47.33 	each make contributions to the Teachers Retirement Association in accordance with the 
47.34 	following schedule:

48.1
48.2		Fiscal Year
	City amount
		School district 
amount
		
48.3		1996
	$
	0
		$
	0
		
48.4		1997
	$
	0
		$
	0
		
48.5		1998
	$
	250,000
		$
	250,000
		
48.6		1999
	$
	400,000
		$
	400,000
		
48.7		2000
	$
	550,000
		$
	550,000
		
48.8		2001
	$
	700,000
		$
	700,000
		
48.9		2002
	$
	850,000
		$
	850,000
		
48.10		2003 and thereafter
	$
	1,000,000
		$
	1,000,000
		
48.11 	(d) Money contributed under paragraph (a) and either paragraph (b) or (c), as 
48.12 	applicable, must be credited to a separate account in the applicable teachers retirement 
48.13 	fund and may not be used in determining any benefit increases. The separate account 
48.14 	terminates for a fund when the aid payments to the fund under paragraph (a) cease.
48.15 	(e) Thirty percent of the difference between $5,720,000 and the current year 
48.16 	amortization aid or and supplemental amortization aid under subdivisions 1 and 1a that 
48.17 	is not distributed for any reason to a municipality for use by a local police or salaried 
48.18 	firefighter relief association must be distributed under section 69.021, subdivision 7, 
48.19 	paragraph (d), as additional funding to support a minimum fire state aid amount for 
48.20 	volunteer firefighter relief associations. The amount required under this paragraph is 
48.21 	appropriated annually to the commissioner of revenue.

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

48.24 	Sec. 23. Minnesota Statutes 2008, section 423A.02, is amended by adding a 
48.25 	subdivision to read:
48.26 		Subd. 3a.Appropriations for amortization aid, supplementary amortization 
48.27 	state aid, and amortization state aid and supplementary state aid reallocations.
 48.28 	$4,720,000 is annually appropriated from the general fund to the commissioner of revenue 
48.29 	for amortization state aid under subdivision 1 and for the reallocation of amortization aid 
48.30 	under subdivision 3. $1,000,000 is annually appropriated from the general fund to the 
48.31 	commissioner of revenue for supplementary amortization state aid under subdivision 1a 
48.32 	and for the reallocation of supplementary amortization state aid under subdivision 3.

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

49.1 	Sec. 24. Minnesota Statutes 2008, section 477A.011, subdivision 34, is amended to 
49.2 	read:
49.3 		Subd. 34.City revenue need. (a) For a city with a population equal to or greater 
49.4 	than 2,500, "city revenue need" is the greater of 285 or the sum of (1) 5.0734098 times the 
49.5 	pre-1940 housing percentage; plus (2) 19.141678 times the population decline percentage; 
49.6 	plus (3) 2504.06334 times the road accidents factor; plus (4) 355.0547; minus (5) the 
49.7 	metropolitan area factor; minus (6) 49.10638 times the household size.
49.8 	(b) For a city with a population less than 2,500, "city revenue need" is the sum of 
49.9 	(1) 2.387 times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial 
49.10 	industrial percentage; plus (3) 3.16042 times the population decline percentage; plus (4) 
49.11 	1.206 times the transformed population; minus (5) 62.772.
49.12 	(c) For a city with a population of 2,500 or more and a population in one of the most 
49.13 	recently available five years that was less than 2,500, "city revenue need" is the sum of (1) 
49.14 	its city revenue need calculated under paragraph (a) multiplied by its transition factor; 
49.15 	plus (2) its city revenue need calculated under the formula in paragraph (b) multiplied 
49.16 	by the difference between one and its transition factor. For purposes of this paragraph, a 
49.17 	city's "transition factor" is equal to 0.2 multiplied by the number of years that the city's 
49.18 	population estimate has been 2,500 or more. This provision only applies for aids payable 
49.19 	in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500. It 
49.20 	applies to any city for aids payable in 2009 and thereafter. The city revenue need under 
49.21 	this paragraph may not be less than 285.
49.22 	(d) The city revenue need cannot be less than zero.
49.23 	(e) For calendar year 2005 and subsequent years, the city revenue need for a city, 
49.24 	as determined in paragraphs (a) to (d), is multiplied by the ratio of the annual implicit 
49.25 	price deflator for government consumption expenditures and gross investment for state 
49.26 	and local governments as prepared by the United States Department of Commerce, for 
49.27 	the most recently available year to the 2003 implicit price deflator for state and local 
49.28 	government purchases.

49.29 	EFFECTIVE DATE. This section is effective for aids payable in 2009 and 
49.30 	thereafter.

49.31 	Sec. 25. Minnesota Statutes 2008, section 477A.011, subdivision 42, is amended to 
49.32 	read:
49.33 		Subd. 42.City jobs base. (a) "City jobs base" for a city with a population of 5,000 or 
49.34 	more is equal to the product of (1) $25.20, (2) the number of jobs per capita in the city, and 
49.35 	(3) its population. For cities with a population less than 5,000, the city jobs base is equal 
50.1 	to zero. For a city receiving aid under subdivision 36, paragraph (l) (k), its city jobs base 
50.2 	is reduced by the lesser of 36 percent of the amount of aid received under that paragraph 
50.3 	or $1,000,000. No city's city jobs base may exceed $4,725,000 under this paragraph.
50.4 	(b) For calendar year 2010 and subsequent years, the city jobs base for a city, as 
50.5 	determined in paragraph (a), is multiplied by the ratio of the appropriation under section 
50.6 	477A.03, subdivision 2a, for the year in which the aid is paid to the appropriation under 
50.7 	that section for aids payable in 2009.
50.8 	(c) For purposes of this subdivision, "jobs per capita in the city" means (1) the 
50.9 	average annual number of employees in the city based on the data from the Quarterly 
50.10 	Census of Employment and Wages, as reported by the Department of Employment and 
50.11 	Economic Development, for the most recent calendar year available as of May 1, 2008, 
50.12 	divided by (2) the city's population for the same calendar year as the employment data. 
50.13 	The commissioner of the Department of Employment and Economic Development shall 
50.14 	certify to the city the average annual number of employees for each city by June 1, 2008. 
50.15 	A city may challenge an estimate under this paragraph by filing its specific objection, 
50.16 	including the names of employers that it feels may have misreported data, in writing with 
50.17 	the commissioner by June 20, 2008. The commissioner shall make every reasonable effort 
50.18 	to address the specific objection and adjust the data as necessary. The commissioner shall 
50.19 	certify the estimates of the annual employment to the commissioner of revenue by July 15, 
50.20 	2008, including any estimates still under objection.

50.21 	EFFECTIVE DATE. This section is effective for aids payable in 2009 and 
50.22 	thereafter.

50.23 	Sec. 26. Minnesota Statutes 2008, section 477A.013, subdivision 8, is amended to read:
50.24 		Subd. 8. City formula aid. (a) In calendar year 2009, the formula aid for a city 
50.25 	is equal to the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need 
50.26 	increase percentage multiplied by its unmet need. 
50.27 	(b) In calendar year 2010 and subsequent years, the formula aid for a city is equal 
50.28 	to the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need increase 
50.29 	percentage multiplied by the average of its unmet need for the most recently available 
50.30 	two years.
50.31 	No city may have a formula aid amount less than zero. The need increase percentage 
50.32 	must be the same for all cities. 
50.33 	The applicable need increase percentage must be calculated by the Department of 
50.34 	Revenue so that the total of the aid under subdivision 9 equals the total amount available 
51.1 	for aid under section 477A.03. For aids payable in 2009 only, all data used in calculating 
51.2 	aid to cities under sections 477A.011 to 477A.013 will be based on the data available for 
51.3 	calculating aid to cities for aids payable in 2008. For aids payable in 2010 and thereafter, 
51.4 	data used in calculating aids to cities under sections 477A.011 to 477A.013 shall be the 
51.5 	most recently available data as of January 1 in the year in which the aid is calculated
51.6 	except for the levies used to calculate maximum increases and decreases under section 
51.7 	477A.013, subdivision 9, paragraphs (b), (c), and (d).

51.8 	EFFECTIVE DATE. This section is effective for assessment year 2009 and 
51.9 	thereafter.

51.10 	Sec. 27.  REPEALER.
 51.11 	Minnesota Rules, parts 8115.0200; 8115.0300; 8115.0400; 8115.0500; 8115.0600; 
51.12 	8115.1000; 8115.1100; 8115.1200; 8115.1300; 8115.1400; 8115.1500; 8115.1600; 
51.13 	8115.1700; 8115.1800; 8115.1900; 8115.2000; 8115.2100; 8115.2200; 8115.2300; 
51.14 	8115.2400; 8115.2500; 8115.2600; 8115.2700; 8115.2800; 8115.2900; 8115.3000; 
51.15 	8115.4000; 8115.4100; 8115.4200; 8115.4300; 8115.4400; 8115.4500; 8115.4600; 
51.16 	8115.4700; 8115.4800; 8115.4900; 8115.5000; 8115.5100; 8115.5200; 8115.5300; 
51.17 	8115.5400; 8115.5500; 8115.5600; 8115.5700; 8115.5800; 8115.5900; 8115.6000; 
51.18 	8115.6100; 8115.6200; 8115.6300; 8115.6400; and 8115.9900; are repealed.

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

51.20 	ARTICLE 5
51.21 	MISCELLANEOUS

51.22 	Section 1. Minnesota Statutes 2008, section 270B.14, subdivision 16, is amended to 
51.23 	read:
51.24 		Subd. 16.Disclosure to law enforcement authorities. Under circumstances 
51.25 	involving threat of death or physical injury to, or harassment of,  any individual, the 
51.26 	commissioner may disclose return information to the extent necessary to apprise 
51.27 	appropriate federal, state, or local law enforcement authorities of such circumstances. 
51.28 	For purposes of this subdivision, "harassment" is purposeful conduct directed at an 
51.29 	individual and causing an individual to feel frightened, threatened, oppressed, persecuted, 
51.30 	or intimidated. Data disclosed under this subdivision are classified under section 13.82
51.31 	once they are received by the law enforcement authority. 

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

52.1 	Sec. 2. Minnesota Statutes 2008, section 270C.12, is amended by adding a subdivision 
52.2 	to read:
52.3 		Subd. 5.Duration. Notwithstanding the provisions of any statutes to the contrary, 
52.4 	including section 15.059, the coordinating committee as established by this section to 
52.5 	oversee and coordinate preparation of the microdata samples of income tax returns and 
52.6 	other information does not expire.

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

52.8 	Sec. 3. Minnesota Statutes 2008, section 270C.446, subdivision 2, is amended to read:
52.9 		Subd. 2. Required and excluded tax preparers. (a) Subject to the limitations of 
52.10 	paragraph (b), the commissioner must publish lists of tax preparers as defined in section 
52.11 	289A.60, subdivision 13, paragraph (f), who have been convicted under section 289A.63
52.12 	for returns or claims prepared as a tax preparer or assessed penalties in excess of $1,000 
52.13 	under section 289A.60, subdivision 13, paragraph (a). 
52.14 	(b) For the purposes of this section, tax preparers are not subject to publication if: 
52.15 	(1) an administrative or court action contesting the penalty has been filed or served 
52.16 	and is unresolved at the time when notice would be given under subdivision 3; 
52.17 	(2) an appeal period to contest the penalty has not expired; or 
52.18 	(3) the commissioner has been notified that the tax preparer is deceased. 

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

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

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

52.31 	Sec. 5. Minnesota Statutes 2008, section 270C.56, subdivision 1, is amended to read:
53.1 		Subdivision 1. Liability imposed. A person who, either singly or jointly with 
53.2 	others, has the control of, supervision of, or responsibility for filing returns or reports, 
53.3 	paying taxes, or collecting or withholding and remitting taxes and who fails to do so, or a 
53.4 	person who is liable under any other law, is liable for the payment of taxes, penalties, and 
53.5 	interest arising under chapters 295, 296A, 297A, 297F, and 297G, or sections 256.9658, 
53.6 	290.92, and 297E.02, and, for the taxes listed in this subdivision, the applicable penalties 
53.7 	for nonpayment under section 289A.60 and interest on those taxes. 

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

53.9 	Sec. 6. Minnesota Statutes 2008, section 289A.41, is amended to read:
53.10 	289A.41 BANKRUPTCY; SUSPENSION OF TIME.
53.11 	The running of the period during which a tax must be assessed or collection 
53.12 	proceedings commenced is suspended during the period from the date of a filing of a 
53.13 	petition in bankruptcy until 30 days after either notice to the commissioner of revenue that 
53.14 	the bankruptcy proceedings have been closed or dismissed, or notice that the automatic 
53.15 	stay has been terminated or has expired, whichever occurs first.
53.16 	The suspension of the statute of limitations under this section applies to the person 
53.17 	the petition in bankruptcy is filed against and other persons who may also be wholly or 
53.18 	partially liable for the tax.

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