HF 885

CCR--HF0885B - 86th Legislature (2009 - 2010)

Posted on 01/15/2013 08:25 p.m.

1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 885 1.2A bill for an act 1.3relating to taxation; making policy, technical, administrative, and clarifying 1.4changes to income, corporate franchise, estate, sales, use, minerals, mortgage, 1.5property, gross receipts, gambling, cigarette, tobacco, liquor, insurance, and 1.6various taxes and tax-related provisions; modifying local government aid and 1.7tax data provision; appropriating money; amending Minnesota Statutes 2008, 1.8sections 126C.21, subdivision 4; 126C.48, subdivision 8; 270B.14, subdivision 1.916; 270C.02, subdivision 1; 270C.12, by adding a subdivision; 270C.446, 1.10subdivisions 2, 5; 270C.56, subdivision 1; 273.11, subdivision 23; 273.111, 1.11subdivision 4; 273.1115, subdivision 2; 273.113, subdivisions 1, 2; 273.1231, 1.12subdivision 8; 273.124, subdivision 21; 273.13, subdivisions 23, 25, 33; 273.33, 1.13subdivision 2; 273.37, subdivision 2; 274.13, subdivision 2; 274.135, subdivision 1.143; 274.14; 274.175; 275.70, subdivision 5; 275.71, subdivision 4; 287.04; 287.05, 1.15by adding a subdivision; 287.22; 287.25; 289A.08, subdivision 3; 289A.12, by 1.16adding a subdivision; 289A.18, subdivision 1; 289A.19, subdivision 4; 289A.38, 1.17subdivision 7; 289A.41; 290.0671, subdivision 1; 290A.10; 290A.14; 290C.06; 1.18290C.07; 295.56; 295.57, subdivision 5; 296A.21, subdivision 1; 297A.70, 1.19subdivisions 2, 4; 297A.992, subdivision 2; 297A.993, subdivision 1; 297E.02, 1.20subdivision 4; 297E.06, by adding a subdivision; 297E.11, subdivision 1; 1.21297F.09, subdivision 7; 297G.09, subdivision 6; 297I.30, by adding a subdivision; 1.22297I.35, subdivision 2; 298.28, subdivisions 4, 11; 423A.02, subdivisions 1b, 1.233, by adding a subdivision; 473.843, subdivision 3; 477A.011, subdivisions 1.2434, 42; 477A.013, subdivision 8; repealing Minnesota Statutes 2008, sections 1.25287.26; 287.27, subdivision 1; 297A.67, subdivision 24; 298.28, subdivisions 1.2611a, 13; Minnesota Rules, parts 8115.0200; 8115.0300; 8115.0400; 8115.0500; 1.278115.0600; 8115.1000; 8115.1100; 8115.1200; 8115.1300; 8115.1400; 1.288115.1500; 8115.1600; 8115.1700; 8115.1800; 8115.1900; 8115.2000; 1.298115.2100; 8115.2200; 8115.2300; 8115.2400; 8115.2500; 8115.2600; 1.308115.2700; 8115.2800; 8115.2900; 8115.3000; 8115.4000; 8115.4100; 1.318115.4200; 8115.4300; 8115.4400; 8115.4500; 8115.4600; 8115.4700; 1.328115.4800; 8115.4900; 8115.5000; 8115.5100; 8115.5200; 8115.5300; 1.338115.5400; 8115.5500; 8115.5600; 8115.5700; 8115.5800; 8115.5900; 1.348115.6000; 8115.6100; 8115.6200; 8115.6300; 8115.6400; 8115.9900. 1.35May 7, 2009 1.36The Honorable Margaret Anderson Kelliher 1.37Speaker of the House of Representatives 1.38The Honorable James P. Metzen 1.39President of the Senate 2.1We, the undersigned conferees for H. F. No. 885 report that we have agreed upon the 2.2items in dispute and recommend as follows: 2.3That the Senate recede from its amendment and that H. F. No. 885 be further 2.4amended as follows: 2.5Delete everything after the enacting clause and insert: 2.6    "Section 1. Minnesota Statutes 2008, section 290.06, subdivision 2c, is amended to 2.7read: 2.8    Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income 2.9taxes imposed by this chapter upon married individuals filing joint returns and surviving 2.10spouses as defined in section 2(a) of the Internal Revenue Code must be computed by 2.11applying to their taxable net income the following schedule of rates: 2.12    (1) on the first $25,680 new text begin $33,220 new text end , 5.35 percent; 2.13    (2) on all over $25,680 new text begin $33,220 new text end , but not over $102,030 new text begin $131,970 new text end , 7.05 percent; 2.14    (3) on all over $102,030 new text begin $131,970 new text end , new text begin but not over $250,000, new text end 7.85 percent. new text begin ; and new text end 2.15 new text begin (4) on all over $250,000, nine percent. new text end 2.16    Married individuals filing separate returns, estates, and trusts must compute their 2.17income tax by applying the above rates to their taxable income, except that the income 2.18brackets will be one-half of the above amounts. 2.19    (b) The income taxes imposed by this chapter upon unmarried individuals must be 2.20computed by applying to taxable net income the following schedule of rates: 2.21    (1) on the first $17,570 new text begin $22,730 new text end , 5.35 percent; 2.22    (2) on all over $17,570 new text begin $22,730 new text end , but not over $57,710 new text begin $74,650 new text end , 7.05 percent; 2.23    (3) on all over $57,710 new text begin $74,650 new text end , new text begin but not over $141,250, new text end 7.85 percent. new text begin ; and new text end 2.24 new text begin (4) on all over $141,250, nine percent. new text end 2.25    (c) The income taxes imposed by this chapter upon unmarried individuals qualifying 2.26as a head of household as defined in section 2(b) of the Internal Revenue Code must be 2.27computed by applying to taxable net income the following schedule of rates: 2.28    (1) on the first $21,630 new text begin $27,980 new text end , 5.35 percent; 2.29    (2) on all over $21,630 new text begin $27,980 new text end , but not over $86,910 new text begin $112,420 new text end , 7.05 percent; 2.30    (3) on all over $86,910 new text begin $112,420 new text end , new text begin but not over $212,500, new text end 7.85 percent. new text begin ; and new text end 2.31 new text begin (4) on all over $212,500, nine percent. new text end 2.32    (d) In lieu of a tax computed according to the rates set forth in this subdivision, the 2.33tax of any individual taxpayer whose taxable net income for the taxable year is less than 2.34an amount determined by the commissioner must be computed in accordance with tables 2.35prepared and issued by the commissioner of revenue based on income brackets of not 2.36more than $100. The amount of tax for each bracket shall be computed at the rates set 3.1forth in this subdivision, provided that the commissioner may disregard a fractional part of 3.2a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1. 3.3    (e) An individual who is not a Minnesota resident for the entire year must compute 3.4the individual's Minnesota income tax as provided in this subdivision. After the 3.5application of the nonrefundable credits provided in this chapter, the tax liability must 3.6then be multiplied by a fraction in which: 3.7    (1) the numerator is the individual's Minnesota source federal adjusted gross income 3.8as defined in section 62 of the Internal Revenue Code and increased by the additions 3.9required under section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), and 3.10(13) and reduced by the Minnesota assignable portion of the subtraction for United States 3.11government interest under section 290.01, subdivision 19b, clause (1), and the subtractions 3.12under section 290.01, subdivision 19b, clauses (9), (10), (14), (15), and (16), after applying 3.13the allocation and assignability provisions of section 290.081, clause (a), or 290.17; and 3.14    (2) the denominator is the individual's federal adjusted gross income as defined in 3.15section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in 3.16section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), and (13) and 3.17reduced by the amounts specified in section 290.01, subdivision 19b, clauses (1), (9), 3.18(10), (14), (15), and (16). 3.19 new text begin (f) For taxable years beginning after December 31, 2013, the maximum tax rate new text end 3.20 new text begin under this subdivision is 7.85 percent, if the commissioner of finance estimates in the new text end 3.21 new text begin February 2013 economic forecast that the unrestricted general fund balance at the end of new text end 3.22 new text begin fiscal year 2013 equals or exceeds $500,000,000. new text end 3.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 3.24 new text begin December 31, 2008. new text end 3.25    Sec. 2. Minnesota Statutes 2008, section 290.06, subdivision 2d, is amended to read: 3.26    Subd. 2d. Inflation adjustment of brackets. (a) For taxable years beginning after 3.27December 31, 2000 new text begin 2009 new text end , the minimum and maximum dollar amounts for each rate 3.28bracket for which a tax is imposed in subdivision 2c shall be adjusted for inflation by the 3.29percentage determined under paragraph (b). For the purpose of making the adjustment as 3.30provided in this subdivision all of the rate brackets provided in subdivision 2c shall be the 3.31rate brackets as they existed for taxable years beginning after December 31, 1999 new text begin 2008 new text end , 3.32and before January 1, 2001 new text begin 2010 new text end . The rate applicable to any rate bracket must not be 3.33changed. The dollar amounts setting forth the tax shall be adjusted to reflect the changes 3.34in the rate brackets. The rate brackets as adjusted must be rounded to the nearest $10 3.35amount. If the rate bracket ends in $5, it must be rounded up to the nearest $10 amount. 4.1(b) The commissioner shall adjust the rate brackets and by the percentage determined 4.2pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that new text begin : new text end 4.3 new text begin (1) in section 1(f)(2)(A) the words "increasing or decreasing" shall be substituted new text end 4.4 new text begin for the word "increasing"; new text end 4.5 new text begin (2) in section 1(f)(3)(A) the words "differs from" shall be substituted for the word new text end 4.6 new text begin "exceeds"; and new text end 4.7 new text begin (3) new text end in section 1(f)(3)(B) the word "1999" new text begin "2008" new text end shall be substituted for the word 4.8"1992." For 2001 new text begin 2010 new text end , the commissioner shall then determine the percent change from 4.9the 12 months ending on August 31, 1999 new text begin 2008 new text end , to the 12 months ending on August 31, 4.102000 new text begin 2009 new text end , and in each subsequent year, from the 12 months ending on August 31, 1999 new text begin new text end 4.11 new text begin 2008 new text end , to the 12 months ending on August 31 of the year preceding the taxable year. The 4.12determination of the commissioner pursuant to this subdivision shall not be considered a 4.13"rule" and shall not be subject to the Administrative Procedure Act contained in chapter 14. 4.14No later than December 15 of each year, the commissioner shall announce the 4.15specific percentage that will be used to adjust the tax rate brackets. 4.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 4.17 new text begin December 31, 2008. new text end 4.18    Sec. 3. new text begin [290.094] SURTAX ON CERTAIN INTEREST INCOME. new text end 4.19     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) Unless the language or context clearly indicates that new text end 4.20 new text begin a different meaning is intended, for the purposes of this section, the following terms new text end 4.21 new text begin have the meanings given them. new text end 4.22 new text begin (b) "Annual percentage rate" has the meaning given the term in Code of Federal new text end 4.23 new text begin Regulations, title 12, parts 226.14 and 226.22, related to open-end and closed-end credit. new text end 4.24 new text begin (c) "Borrower" means a debtor under a loan or a purchaser of debt under a credit new text end 4.25 new text begin sale contract. new text end 4.26 new text begin (d) "Cardholder" means a person to whom a credit card is issued or who has agreed new text end 4.27 new text begin with the financial institution to pay obligations arising from the issuance to or use of the new text end 4.28 new text begin card by another person. new text end 4.29 new text begin (e) "Consumer loan" means a loan made by a financial institution in which: new text end 4.30 new text begin (1) the debtor is a person other than an organization; new text end 4.31 new text begin (2) the debt is incurred primarily for a personal, family, or household purpose; and new text end 4.32 new text begin (3) the debt is payable in installments or a finance charge is made. new text end 4.33 new text begin (f) "Credit" means the right granted by a financial institution to a borrower to defer new text end 4.34 new text begin payment of a debt, to incur debt and defer its payment, or to purchase property or services new text end 4.35 new text begin and defer payment. new text end 5.1 new text begin (g) "Credit card" means a card or device issued under an arrangement under new text end 5.2 new text begin which a financial institution gives to a cardholder the privilege of obtaining credit from new text end 5.3 new text begin the financial institution or other person in purchasing or leasing property or services, new text end 5.4 new text begin obtaining loans, or otherwise. A transaction is "pursuant to a credit card" only if credit is new text end 5.5 new text begin obtained according to the terms of the arrangement by transmitting information contained new text end 5.6 new text begin on the card or device orally, in writing, by mechanical or electronic methods, or in any new text end 5.7 new text begin other manner. A transaction is not "pursuant to a credit card" if the card or device is new text end 5.8 new text begin used solely in that transaction to: new text end 5.9 new text begin (1) identify the cardholder or evidence the cardholder's creditworthiness and credit is new text end 5.10 new text begin not obtained according to the terms of the arrangement; new text end 5.11 new text begin (2) obtain a guarantee of payment from the cardholder's deposit account, whether or new text end 5.12 new text begin not the payment results in a credit extension to the cardholder by the financial institution; or new text end 5.13 new text begin (3) effect an immediate transfer of funds from the cardholder's deposit account by new text end 5.14 new text begin electronic or other means, whether or not the transfer results in a credit extension to new text end 5.15 new text begin the cardholder by the financial institution. new text end 5.16 new text begin (h) "Credit sale contract" means a contract evidencing a credit sale. "Credit sale" new text end 5.17 new text begin means a sale of goods or services, or an interest in land, in which: new text end 5.18 new text begin (1) credit is granted by a seller who regularly engages as a seller in credit transactions new text end 5.19 new text begin of the same kind; and new text end 5.20 new text begin (2) the debt is payable in installments or a finance charge is made. new text end 5.21 new text begin (i) "Financial institution" means a state or federally chartered bank, a state or new text end 5.22 new text begin federally chartered bank and trust, a trust company with banking powers, a state or new text end 5.23 new text begin federally chartered savings association, an industrial loan and thrift company organized new text end 5.24 new text begin under chapter 53, a regulated lender organized under chapter 56, or an operating subsidiary new text end 5.25 new text begin of any such institution. new text end 5.26 new text begin (j) "Loan" means: new text end 5.27 new text begin (1) the creation of debt by the financial institution's payment of money to the new text end 5.28 new text begin borrower or a third person for the account of the borrower; new text end 5.29 new text begin (2) the creation of debt pursuant to a credit card in any manner, including a cash new text end 5.30 new text begin advance or the financial institution's honoring a draft or similar order for the payment of new text end 5.31 new text begin money drawn or accepted by the borrower, paying or agreeing to pay the borrower's new text end 5.32 new text begin obligation, or purchasing or otherwise acquiring the borrower's obligation from the new text end 5.33 new text begin obligee or the borrower's assignee; new text end 5.34 new text begin (3) the creation of debt by a cash advance to a borrower pursuant to an overdraft new text end 5.35 new text begin line of credit arrangement; new text end 6.1 new text begin (4) the creation of debt by a credit to an account with the financial institution upon new text end 6.2 new text begin which the borrower is entitled to draw immediately; new text end 6.3 new text begin (5) the forbearance of debt arising from a loan; and new text end 6.4 new text begin (6) the creation of debt pursuant to open-end credit. new text end 6.5 new text begin "Loan" does not include the forbearance of debt arising from a sale or lease, a credit new text end 6.6 new text begin sale contract, or an overdraft from a person's deposit account with a financial institution new text end 6.7 new text begin which is not pursuant to a written agreement to pay overdrafts with the right to defer new text end 6.8 new text begin repayment thereof. new text end 6.9 new text begin (k) "Organization" means a corporation, government, government subdivision or new text end 6.10 new text begin agency, trust, estate, partnership, joint venture, cooperative, limited liability company, new text end 6.11 new text begin limited liability partnership, or association. new text end 6.12 new text begin (l) "Person" means a natural person or an organization. new text end 6.13 new text begin (m) "Principal" means the total of: new text end 6.14 new text begin (1) the amount paid to, received by, or paid or repayable for the account of, the new text end 6.15 new text begin borrower; and new text end 6.16 new text begin (2) to the extent that payment is deferred: new text end 6.17 new text begin (i) the amount actually paid or to be paid by the financial institution for additional new text end 6.18 new text begin charges permitted under this section; and new text end 6.19 new text begin (ii) prepaid finance charges. new text end 6.20     new text begin Subd. 2. new text end new text begin Scope. new text end new text begin (a) Any person or organization conducting a trade or business new text end 6.21 new text begin in this state who is subject to the truth in lending requirements under Code of Federal new text end 6.22 new text begin Regulations, title 12, part 226 (Federal Regulation Z), and who charges interest on the new text end 6.23 new text begin credit issued shall be subject to a surtax on each transaction as prescribed by this chapter. new text end 6.24 new text begin Transactions include any open-end and closed-end credit transactions subject to Federal new text end 6.25 new text begin Regulation Z such as loans, consumer loans, credit sale contracts, extensions of credit, and new text end 6.26 new text begin credit issued pursuant to a credit card. A transferee or assignee of a transaction subject to new text end 6.27 new text begin the surtax under this section is also subject to the tax under this section. new text end 6.28 new text begin (b) The tax shall be determined for each transaction subject to the requirements of new text end 6.29 new text begin this section that occurs during the calendar year. new text end 6.30     new text begin Subd. 3. new text end new text begin Surtax rate. new text end new text begin The surtax shall be imposed at the rate of 30 percent on any new text end 6.31 new text begin income attributable to interest collected from the portion of an annual percentage rate new text end 6.32 new text begin that exceeds 15 percent on transactions subject to Code of Federal Regulations, title 12, new text end 6.33 new text begin part 226 (Federal Regulation Z). new text end 7.1     new text begin Subd. 4. new text end new text begin Collection and administration. new text end new text begin The tax imposed by this section shall new text end 7.2 new text begin be paid annually to the commissioner of revenue and is subject to the same collection, new text end 7.3 new text begin enforcement, and penalty provisions as other taxes imposed by this chapter. new text end 7.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 7.5 new text begin December 31, 2008. new text end 7.6    Sec. 4. Minnesota Statutes 2008, section 295.75, subdivision 2, is amended to read: 7.7    Subd. 2. Gross receipts tax imposed. A tax is imposed on each liquor retailer equal 7.8to 2.5 new text begin five new text end percent of gross receipts from retail sales in Minnesota of liquor. 7.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for gross receipts received after new text end 7.10 new text begin June 30, 2009. new text end 7.11    Sec. 5. Minnesota Statutes 2008, section 297G.03, subdivision 1, is amended to read: 7.12    Subdivision 1. General rate; distilled spirits and wine. The following excise tax is 7.13imposed on all distilled spirits and wine manufactured, imported, sold, or possessed in 7.14this state: 7.15 Standard Metric 7.16 7.17 7.18 7.19 (a) Distilled spirits, liqueurs, cordials, and specialties regardless of alcohol content (excluding ethyl alcohol) $ 5.03 new text begin 7.59 new text end per gallon $ 1.33 new text begin 2.01 new text end per liter 7.20 7.21 7.22 7.23 (b) Wine containing 14 percent or less alcohol by volume (except cider as defined in section 297G.01, subdivision 3a) $ .30 new text begin .81 new text end per gallon $ .08 new text begin .22 new text end per liter 7.24 7.25 7.26 (c) Wine containing more than 14 percent but not more than 21 percent alcohol by volume $ .95 new text begin 1.46 new text end per gallon $ .25 new text begin .39 new text end per liter 7.27 7.28 7.29 (d) Wine containing more than 21 percent but not more than 24 percent alcohol by volume $ 1.82 new text begin 2.33 new text end per gallon $ .48 new text begin .62 new text end per liter 7.30 7.31 (e) Wine containing more than 24 percent alcohol by volume $ 3.52 new text begin 4.03 new text end per gallon $ .93 new text begin 1.07 new text end per liter 8.1 8.2 (f) Natural and artificial sparkling wines containing alcohol $ 1.82 new text begin 2.33 new text end per gallon $ .48 new text begin .62 new text end per liter 8.3 8.4 (g) Cider as defined in section 297G.01, subdivision 3a $ .15 new text begin .66 new text end per gallon $ .04 new text begin .18 new text end per liter 8.5 (h) Low alcohol dairy cocktails $ .08 per gallon $ .02 per liter 8.6In computing the tax on a package of distilled spirits or wine, a proportional tax at a 8.7like rate on all fractional parts of a gallon or liter must be paid, except that the tax on a 8.8fractional part of a gallon less than 1/16 of a gallon is the same as for 1/16 of a gallon. 8.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2009. new text end 8.10    Sec. 6. Minnesota Statutes 2008, section 297G.04, is amended to read: 8.11297G.04 FERMENTED MALT BEVERAGES; RATE OF TAX. 8.12    Subdivision 1. Tax imposed. The following excise tax is imposed on all fermented 8.13malt beverages that are imported, directly or indirectly sold, or possessed in this state: 8.14(1) on fermented malt beverages containing not more than 3.2 percent alcohol by 8.15weight, $2.40 new text begin $9.01 new text end per 31-gallon barrel; and 8.16(2) on fermented malt beverages containing more than 3.2 percent alcohol by 8.17weight, $4.60 new text begin $11.21 new text end per 31-gallon barrel. 8.18For fractions of a 31-gallon barrel, the tax rate is calculated proportionally. 8.19    Subd. 2. Tax credit. A qualified brewer producing fermented malt beverages is 8.20entitled to a tax credit of $4.60 new text begin $11.21 new text end per barrel on 25,000 barrels sold in any fiscal year 8.21beginning July 1, regardless of the alcohol content of the product. Qualified brewers may 8.22take the credit on the 18th day of each month, but the total credit allowed may not exceed 8.23in any fiscal year the lesser of: 8.24(1) the liability for tax; or 8.25(2) $115,000 new text begin $280,000 new text end . 8.26For purposes of this subdivision, a "qualified brewer" means a brewer, whether 8.27or not located in this state, manufacturing less than 100,000 barrels of fermented malt 8.28beverages in the calendar year immediately preceding the calendar year for which the 8.29credit under this subdivision is claimed. In determining the number of barrels, all brands 8.30or labels of a brewer must be combined. All facilities for the manufacture of fermented 8.31malt beverages owned or controlled by the same person, corporation, or other entity 8.32must be treated as a single brewer. 8.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2009. new text end 9.1    Sec. 7. new text begin GENERAL FUND ACCOUNTS; FISCAL YEARS 2010-2013. new text end 9.2     new text begin Subdivision 1. new text end new text begin E-12 education account. new text end new text begin An E-12 education account is created in new text end 9.3 new text begin the general fund. Amounts remain in the account until appropriated for E-12 education. new text end 9.4 new text begin Appropriations from the account may only be used for E-12 education. new text end 9.5     new text begin Subd. 2. new text end new text begin Nursing home and long-term care account. new text end new text begin A nursing home and new text end 9.6 new text begin long-term care account is created in the general fund. Amounts remain in the account until new text end 9.7 new text begin appropriated for nursing homes or long-term care services. Appropriations from the new text end 9.8 new text begin account may only be used for nursing homes and long-term care services. new text end 9.9     new text begin Subd. 3. new text end new text begin Hospital account. new text end new text begin A hospital account is created in the general fund. new text end 9.10 new text begin Amounts remain in the account until appropriated for hospitals. Appropriations from the new text end 9.11 new text begin account may only be used for hospitals. new text end 9.12     new text begin Subd. 4. new text end new text begin Expiration. new text end new text begin This section expires June 30, 2013. new text end 9.13    Sec. 8. new text begin TRANSFERS. new text end 9.14 new text begin (a) In the fiscal year 2010-2011 biennium, $986,000,000 is transferred to the new text end 9.15 new text begin accounts established in section 7 as follows: new text end 9.16 new text begin (1) $585,784,000 to the E-12 education account; new text end 9.17 new text begin (2) $287,566,000 to the nursing home and long-term care account; and new text end 9.18 new text begin (3) $114,130,000 to the hospital account. new text end 9.19 new text begin (b) In the fiscal year 2012-2013 biennium, $1,000,000,000 is transferred to the new text end 9.20 new text begin accounts established in section 7 as follows: new text end 9.21 new text begin (1) $465,259,000 to the E-12 education account; new text end 9.22 new text begin (2) $361,643,000 to the nursing home and long-term care account; and new text end 9.23 new text begin (3) $173,978,000 to the hospital account. new text end 9.24    Sec. 9. new text begin APPROPRIATIONS. new text end 9.25     new text begin Subdivision 1. new text end new text begin Tax compliance. new text end new text begin (a) $1,194,300 the first year and $2,350,200 the new text end 9.26 new text begin second year are appropriated from the general fund to the commissioner of revenue for new text end 9.27 new text begin additional activities to identify and collect tax liabilities from individuals and businesses new text end 9.28 new text begin that currently do not pay all taxes owed. This initiative is expected to result in new general new text end 9.29 new text begin fund revenues of $7,948,700 for the biennium ending June 30, 2011. new text end 9.30     new text begin (b) The department must report to the chairs of the house of representatives Ways new text end 9.31 new text begin and Means and senate Finance Committees by March 1, 2010, and January 15, 2011, new text end 9.32 new text begin on the following performance indicators: new text end 9.33     new text begin (1) the number of corporations noncompliant with the corporate tax system each new text end 9.34 new text begin year and the percentage and dollar amounts of valid tax liabilities collected; new text end 10.1     new text begin (2) the number of businesses noncompliant with the sales and use tax system and the new text end 10.2 new text begin percentage and dollar amount of the valid tax liabilities collected; and new text end 10.3     new text begin (3) the number of individual noncompliant cases resolved and the percentage and new text end 10.4 new text begin dollar amounts of valid tax liabilities collected. new text end 10.5     new text begin Subd. 2. new text end new text begin Debt collection management. new text end new text begin $364,800 the first year and $750,700 the new text end 10.6 new text begin second year are appropriated from the general fund to the commissioner of revenue for new text end 10.7 new text begin additional activities to identify and collect tax liabilities from individuals and businesses new text end 10.8 new text begin that currently do not pay all taxes owed. This initiative is expected to result in new general new text end 10.9 new text begin fund revenues of $10,691,300 for the biennium ending June 30, 2011. new text end " 10.10Delete the title and insert: 10.11"A bill for an act 10.12relating to the financing of state and local government; making changes to 10.13income, liquor, gross receipts, and other tax-related provisions; providing a 10.14surtax on certain interest income; creating certain accounts in the general fund, 10.15including an E-12 education account, a nursing home and long-term care account, 10.16and a hospital account; creating tax compliance initiative; appropriating money; 10.17amending Minnesota Statutes 2008, sections 290.06, subdivisions 2c, 2d; 295.75, 10.18subdivision 2; 297G.03, subdivision 1; 297G.04; proposing coding for new law 10.19in Minnesota Statutes, chapter 290." We request the adoption of this report and repassage of the bill.House Conferees: (Signed) Ann Lenczewski, Morrie Lanning, Mindy Greiling, Erin Murphy, Keith DowneySenate Conferees: (Signed) Thomas Bakk, Rod Skoe, Ann Rest, D. Scott Dibble, Mee Moua 11.1 We request the adoption of this report and repassage of the bill. 11.2 House Conferees:(Signed) 11.3 ..... ..... 11.4 Ann Lenczewski Paul Marquart 11.5 ..... ..... 11.6 Mindy Greiling Erin Murphy 11.7 ..... 11.8 Keith Downey 11.9 Senate Conferees:(Signed) 11.10 ..... ..... 11.11 Thomas Bakk Rod Skoe 11.12 ..... ..... 11.13 Ann H. Rest D. Scott Dibble 11.14 ..... 11.15 Mee Moua