<a id="pl.1.3"></a><var>1.3</var>policy, technical, administrative, and clarifying changes to income, corporate <br/>
<a id="pl.1.4"></a><var>1.4</var>franchise, estate, sales, use, mortgage, property, gross receipts, fuel, cigarette, <br/>
<a id="pl.1.5"></a><var>1.5</var>tobacco, insurance, gambling, liquor, minerals, solid waste, and various taxes and <br/>
<a id="pl.1.6"></a><var>1.6</var>tax-related provisions; modifying local government aid and tax data provisions; <br/>
<a id="pl.1.7"></a><var>1.7</var>appropriating money for education, health, and human services;amending <br/>
<a id="pl.1.8"></a><var>1.8</var>Minnesota Statutes 2008, sections 270B.14, subdivision 16; 270C.12, by adding <br/>
<a id="pl.1.9"></a><var>1.9</var>a subdivision; 270C.446, subdivisions 2, 5; 270C.56, subdivision 1; 273.11, <br/>
<a id="pl.1.10"></a><var>1.10</var>subdivision 23; 273.111, subdivision 4; 273.1115, subdivision 2; 273.1231, <br/>
<a id="pl.1.11"></a><var>1.11</var>subdivision 8; 273.124, subdivisions 3, 3a, 13, 21; 273.13, subdivisions 23, <br/>
<a id="pl.1.12"></a><var>1.12</var>25, 33; 273.33, subdivision 2; 273.37, subdivision 2; 274.13, subdivision <br/>
<a id="pl.1.13"></a><var>1.13</var>2; 274.135, subdivision 3; 274.14; 274.175; 282.01, subdivisions 1, 1a, 1b, <br/>
<a id="pl.1.14"></a><var>1.14</var>1c, 1d, 2, 3, 4, 7, 7a, by adding a subdivision; 287.04; 287.05, by adding a <br/>
<a id="pl.1.15"></a><var>1.15</var>subdivision; 287.22; 287.2205; 287.25; 289A.08, subdivision 3; 289A.12, by <br/>
<a id="pl.1.16"></a><var>1.16</var>adding a subdivision; 289A.18, subdivision 1; 289A.19, subdivision 4; 289A.31, <br/>
<a id="pl.1.17"></a><var>1.17</var>subdivision 5; 289A.38, subdivision 7; 289A.41; 290.01, subdivision 19b; <br/>
<a id="pl.1.18"></a><var>1.18</var>290.0671, subdivision 1; 290A.10; 290A.14; 290C.06; 290C.07; 295.56; 295.57, <br/>
<a id="pl.1.19"></a><var>1.19</var>subdivision 5; 296A.21, subdivision 1; 297A.70, subdivisions 2, 4; 297A.992, <br/>
<a id="pl.1.20"></a><var>1.20</var>subdivision 2; 297A.993, subdivision 1; 297E.02, subdivision 4; 297E.06, by <br/>
<a id="pl.1.21"></a><var>1.21</var>adding a subdivision; 297E.11, subdivision 1; 297F.09, subdivision 7; 297G.09, <br/>
<a id="pl.1.22"></a><var>1.22</var>subdivision 6; 297I.30, by adding a subdivision; 297I.35, subdivision 2; <br/>
<a id="pl.1.23"></a><var>1.23</var>298.28, subdivision 11; 473.843, subdivision 3; 477A.011, subdivisions 34, 42; <br/>
<a id="pl.1.24"></a><var>1.24</var>477A.013, subdivision 8; repealing Minnesota Statutes 2008, sections 282.01, <br/>
<a id="pl.1.25"></a><var>1.25</var>subdivisions 9, 10, 11; 287.26; 287.27, subdivision 1; 297A.67, subdivision <br/>
<a id="pl.1.26"></a><var>1.26</var>24; 298.28, subdivisions 11a, 13; 383A.76; Minnesota Rules, parts 8009.3000; <br/>
<a id="pl.1.27"></a><var>1.27</var>8115.0200; 8115.0300; 8115.0400; 8115.0500; 8115.0600; 8115.1000; <br/>
<a id="pl.1.28"></a><var>1.28</var>8115.1100; 8115.1200; 8115.1300; 8115.1400; 8115.1500; 8115.1600; <br/>
<a id="pl.1.29"></a><var>1.29</var>8115.1700; 8115.1800; 8115.1900; 8115.2000; 8115.2100; 8115.2200; <br/>
<a id="pl.1.30"></a><var>1.30</var>8115.2300; 8115.2400; 8115.2500; 8115.2600; 8115.2700; 8115.2800; <br/>
<a id="pl.1.31"></a><var>1.31</var>8115.2900; 8115.3000; 8115.4000; 8115.4100; 8115.4200; 8115.4300; <br/>
<a id="pl.1.32"></a><var>1.32</var>8115.4400; 8115.4500; 8115.4600; 8115.4700; 8115.4800; 8115.4900; <br/>
<a id="pl.1.33"></a><var>1.33</var>8115.5000; 8115.5100; 8115.5200; 8115.5300; 8115.5400; 8115.5500; <br/>
<a id="pl.1.34"></a><var>1.34</var>8115.5600; 8115.5700; 8115.5800; 8115.5900; 8115.6000; 8115.6100; <br/>
<a id="pl.1.35"></a><var>1.35</var>8115.6200; 8115.6300; 8115.6400; 8115.9900.<br/>
<a id="pl.1.36"></a><var>1.36</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.2.3"></a><var>2.3</var>    Section 1. Minnesota Statutes 2008, section 289A.08, subdivision 3, is amended to <br/>
<a id="pl.2.4"></a><var>2.4</var>read:<br/>
<a id="pl.2.5"></a><var>2.5</var>    Subd. 3. <b>Corporations.</b> (a) A corporation that is subject to the state's jurisdiction to <br/>
<a id="pl.2.6"></a><var>2.6</var>tax under section 
         <statute_ref>290.014, subdivision 5</statute_ref>, must file a return, except that a foreign operating <br/>
<a id="pl.2.7"></a><var>2.7</var>corporation as defined in section 
         <statute_ref>290.01, subdivision 6b</statute_ref>, is not required to file a return.<br/>
<a id="pl.2.8"></a><var>2.8</var>(b) Members of a unitary business that are required to file a combined report on one <br/>
<a id="pl.2.9"></a><var>2.9</var>return must designate a member of the unitary business to be responsible for tax matters, <br/>
<a id="pl.2.10"></a><var>2.10</var>including the filing of returns, the payment of taxes, additions to tax, penalties, interest, <br/>
<a id="pl.2.11"></a><var>2.11</var>or any other payment, and for the receipt of refunds of taxes or interest paid in excess of <br/>
<a id="pl.2.12"></a><var>2.12</var>taxes lawfully due. The designated member must be a member of the unitary business that <br/>
<a id="pl.2.13"></a><var>2.13</var>is filing the single combined report and either:<br/>
<a id="pl.2.14"></a><var>2.14</var>(1) a corporation that is subject to the taxes imposed by chapter 290; or<br/>
<a id="pl.2.15"></a><var>2.15</var>(2) a corporation that is not subject to the taxes imposed by chapter 290:<br/>
<a id="pl.2.16"></a><var>2.16</var>(i) Such corporation consents by filing the return as a designated member under this <br/>
<a id="pl.2.17"></a><var>2.17</var>clause to remit taxes, penalties, interest, or additions to tax due from the members of the <br/>
<a id="pl.2.18"></a><var>2.18</var>unitary business subject to tax, and receive refunds or other payments on behalf of other <br/>
<a id="pl.2.19"></a><var>2.19</var>members of the unitary business. The member designated under this clause is a "taxpayer" <br/>
<a id="pl.2.20"></a><var>2.20</var>for the purposes of this chapter and chapter 270C, and is liable for any liability imposed <br/>
<a id="pl.2.21"></a><var>2.21</var>on the unitary business under this chapter and chapter 290.<br/>
<a id="pl.2.22"></a><var>2.22</var>(ii) If the state does not otherwise have the jurisdiction to tax the member designated <br/>
<a id="pl.2.23"></a><var>2.23</var>under this clause, consenting to be the designated member does not create the jurisdiction <br/>
<a id="pl.2.24"></a><var>2.24</var>to impose tax on the designated member, other than as described in item (i).<br/>
<a id="pl.2.25"></a><var>2.25</var>(iii) The member designated under this clause must apply for a business tax account <br/>
<a id="pl.2.26"></a><var>2.26</var>identification number.<br/>
<a id="pl.2.27"></a><var>2.27</var>(c) The commissioner shall adopt rules for the filing of one return on behalf of the <br/>
<a id="pl.2.28"></a><var>2.28</var>members of an affiliated group of corporations that are required to file a combined report. <br/>
<a id="pl.2.29"></a><var>2.29</var>All members of an affiliated group that are required to file a combined report must file one <br/>
<a id="pl.2.30"></a><var>2.30</var>return on behalf of the members of the group under rules adopted by the commissioner.<br/>
<a id="pl.2.31"></a><var>2.31</var>(d) If a corporation claims on a return that it has paid tax in excess of the amount of <br/>
<a id="pl.2.32"></a><var>2.32</var>taxes lawfully due, that corporation must include on that return information necessary for <br/>
<a id="pl.2.33"></a><var>2.33</var>payment of the tax in excess of the amount lawfully due by electronic means.<br/>
<a id="pl.2.34"></a><var>2.34</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.2.35"></a><var>2.35</var>December 31, 2008.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.3.1"></a><var>3.1</var>    Sec. 2. Minnesota Statutes 2008, section 289A.12, is amended by adding a subdivision <br/>
<a id="pl.3.2"></a><var>3.2</var>to read:<br/>
<a id="pl.3.3"></a><var>3.3</var>    Subd. 16. <b>Qualified intermediaries.</b> The commissioner may by notice and demand <br/>
<a id="pl.3.4"></a><var>3.4</var>require a qualified intermediary to file a return relating to transactions for which the <br/>
<a id="pl.3.5"></a><var>3.5</var>intermediary acted to facilitate exchanges under section 1031 of the Internal Revenue <br/>
<a id="pl.3.6"></a><var>3.6</var>Code. The return must include the name, address, and state or federal tax identification <br/>
<a id="pl.3.7"></a><var>3.7</var>number or Social Security number of each of the parties to the exchange, information <br/>
<a id="pl.3.8"></a><var>3.8</var>relating to the property subject to the exchange, and any other information required by <br/>
<a id="pl.3.9"></a><var>3.9</var>the commissioner.<br/>
<a id="pl.3.10"></a><var>3.10</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009, and applies to all <br/>
<a id="pl.3.11"></a><var>3.11</var>transactions whether facilitated on, before, or after that date.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.3.12"></a><var>3.12</var>    Sec. 3. Minnesota Statutes 2008, section 289A.18, subdivision 1, is amended to read:<br/>
<a id="pl.3.13"></a><var>3.13</var>    Subdivision 1.  <b>Individual income, fiduciary income, corporate franchise, and </b><br/>
<a id="pl.3.14"></a><var>3.14</var><b>entertainment taxes; partnership and S corporation returns; information returns; </b><br/>
<a id="pl.3.15"></a><var>3.15</var><b>mining company returns.</b> The returns required to be made under sections 
         <statute_ref>289A.08</statute_ref> and <br/>
<statute_ref><a id="pl.3.16"></a><var>3.16</var>289A.12
         </statute_ref> must be filed at the following times: <br/>
<a id="pl.3.17"></a><var>3.17</var>    (1) returns made on the basis of the calendar year must be filed on April 15 following <br/>
<a id="pl.3.18"></a><var>3.18</var>the close of the calendar year, except that returns of corporations must be filed on March <br/>
<a id="pl.3.19"></a><var>3.19</var>15 following the close of the calendar year; <br/>
<a id="pl.3.20"></a><var>3.20</var>    (2) returns made on the basis of the fiscal year must be filed on the 15th day of the <br/>
<a id="pl.3.21"></a><var>3.21</var>fourth month following the close of the fiscal year, except that returns of corporations <br/>
<a id="pl.3.22"></a><var>3.22</var>must be filed on the 15th day of the third month following the close of the fiscal year; <br/>
<a id="pl.3.23"></a><var>3.23</var>    (3) returns for a fractional part of a year must be filed on the 15th day of the fourth <br/>
<a id="pl.3.24"></a><var>3.24</var>month following the end of the month in which falls the last day of the period for which <br/>
<a id="pl.3.25"></a><var>3.25</var>the return is made, except that the returns of corporations must be filed on the 15th day of <br/>
<a id="pl.3.26"></a><var>3.26</var>the third month following the end of the tax year; or, in the case of a corporation which is <br/>
<a id="pl.3.27"></a><var>3.27</var>a member of a unitary group, the return of the corporation must be filed on the 15th day of <br/>
<a id="pl.3.28"></a><var>3.28</var>the third month following the end of the tax year of the unitary group in which falls the <br/>
<a id="pl.3.29"></a><var>3.29</var>last day of the period for which the return is made; <br/>
<a id="pl.3.30"></a><var>3.30</var>    (4) in the case of a final return of a decedent for a fractional part of a year, the return <br/>
<a id="pl.3.31"></a><var>3.31</var>must be filed on the 15th day of the fourth month following the close of the 12-month <br/>
<a id="pl.3.32"></a><var>3.32</var>period that began with the first day of that fractional part of a year; <br/>
<a id="pl.3.33"></a><var>3.33</var>    (5) in the case of the return of a cooperative association, returns must be filed on or <br/>
<a id="pl.3.34"></a><var>3.34</var>before the 15th day of the ninth month following the close of the taxable year; <br/>
<a id="pl.4.1"></a><var>4.1</var>    (6) if a corporation has been divested from a unitary group and files a return for <br/>
<a id="pl.4.2"></a><var>4.2</var>a fractional part of a year in which it was a member of a unitary business that files a <br/>
<a id="pl.4.3"></a><var>4.3</var>combined report under section 
         <statute_ref>290.17, subdivision 4</statute_ref>, the divested corporation's return <br/>
<a id="pl.4.4"></a><var>4.4</var>must be filed on the 15th day of the third month following the close of the common <br/>
<a id="pl.4.5"></a><var>4.5</var>accounting period that includes the fractional year; <br/>
<a id="pl.4.6"></a><var>4.6</var>    (7) returns of entertainment entities must be filed on April 15 following the close of <br/>
<a id="pl.4.7"></a><var>4.7</var>the calendar year; <br/>
<a id="pl.4.8"></a><var>4.8</var>    (8) returns required to be filed under section 
         <statute_ref>289A.08, subdivision 4</statute_ref>, must be filed <br/>
<a id="pl.4.9"></a><var>4.9</var>on the 15th day of the fifth month following the close of the taxable year; <br/>
<a id="pl.4.10"></a><var>4.10</var>    (9) returns of mining companies must be filed on May 1 following the close of the <br/>
<a id="pl.4.11"></a><var>4.11</var>calendar year; and <br/>
<a id="pl.4.12"></a><var>4.12</var>    (10) returns required to be filed with the commissioner under section 
         <statute_ref>289A.12, <br/>
<a id="pl.4.13"></a><var>4.13</var>subdivision 2 
         </statute_ref>or, 4 to 10, or 16 must be filed within 30 days after being demanded by <br/>
<a id="pl.4.14"></a><var>4.14</var>the commissioner. <br/>
<a id="pl.4.15"></a><var>4.15</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.4.16"></a><var>4.16</var>    Sec. 4. Minnesota Statutes 2008, section 289A.19, subdivision 4, is amended to read:<br/>
<a id="pl.4.17"></a><var>4.17</var>    Subd. 4. <b>Estate tax returns.</b> When an extension to file the federal estate tax return <br/>
<a id="pl.4.18"></a><var>4.18</var>has been granted under section 6081 of the Internal Revenue Code, the time for filing <br/>
<a id="pl.4.19"></a><var>4.19</var>the estate tax return is extended for that period. If the estate requests an extension to <br/>
<a id="pl.4.20"></a><var>4.20</var>file an estate tax return within the time provided in section 
<statute_ref>289A.18, subdivision 3</statute_ref>, the <br/>
<a id="pl.4.21"></a><var>4.21</var>commissioner shall extend the time for filing the estate tax return for six months. The time <br/>
<a id="pl.4.22"></a><var>4.22</var>for filing an estate tax return shall be extended for either six months or the amount of <br/>
<a id="pl.4.23"></a><var>4.23</var>time granted under section 6081 of the Internal Revenue Code to file the federal estate <br/>
<a id="pl.4.24"></a><var>4.24</var>tax return, whichever is longer.<br/>
<a id="pl.4.25"></a><var>4.25</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br/>
<a id="pl.4.26"></a><var>4.26</var>December 31, 2008.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.4.27"></a><var>4.27</var>    Sec. 5. Minnesota Statutes 2008, section 289A.31, subdivision 5, is amended to read:<br/>
<a id="pl.4.28"></a><var>4.28</var>    Subd. 5. <b>Withholding tax, withholding from payments to out-of-state </b><br/>
<a id="pl.4.29"></a><var>4.29</var><b>contractors, and withholding by partnerships and small business corporations.</b> (a) <br/>
<a id="pl.4.30"></a><var>4.30</var>Except as provided in paragraph (b), an employer or person withholding tax under section <br/>
<statute_ref><a id="pl.4.31"></a><var>4.31</var>290.92
         </statute_ref> or 
         <statute_ref>290.923, subdivision 2</statute_ref>, who fails to pay to or deposit with the commissioner a <br/>
<a id="pl.4.32"></a><var>4.32</var>sum or sums required by those sections to be deducted, withheld, and paid, is personally <br/>
<a id="pl.4.33"></a><var>4.33</var>and individually liable to the state for the sum or sums, and added penalties and interest, <br/>
<a id="pl.5.1"></a><var>5.1</var>and is not liable to another person for that payment or payments. The sum or sums <br/>
<a id="pl.5.2"></a><var>5.2</var>deducted and withheld under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> or 3, or 
         <statute_ref>290.923, subdivision <br/>
<a id="pl.5.3"></a><var>5.3</var>2
         </statute_ref>, must be held as a special fund in trust for the state of Minnesota.<br/>
<a id="pl.5.4"></a><var>5.4</var>(b) If the employer or person withholding tax under section 
         <statute_ref>290.92</statute_ref> or 
         <statute_ref>290.923, <br/>
<a id="pl.5.5"></a><var>5.5</var>subdivision 2
         </statute_ref>, fails to deduct and withhold the tax in violation of those sections, and later <br/>
<a id="pl.5.6"></a><var>5.6</var>the taxes against which the tax may be credited are paid, the tax required to be deducted <br/>
<a id="pl.5.7"></a><var>5.7</var>and withheld will not be collected from the employer. This does not, however, relieve the <br/>
<a id="pl.5.8"></a><var>5.8</var>employer from liability for any penalties and interest otherwise applicable for failure to <br/>
<a id="pl.5.9"></a><var>5.9</var>deduct and withhold. This paragraph does not apply to an employer subject to paragraph <br/>
<a id="pl.5.10"></a><var>5.10</var>(g), or to a contractor required to withhold under section 290.92, subdivision 31.<br/>
<a id="pl.5.11"></a><var>5.11</var>(c) Liability for payment of withholding taxes includes a responsible person or entity <br/>
<a id="pl.5.12"></a><var>5.12</var>described in the personal liability provisions of section 
         <statute_ref>270C.56</statute_ref>.<br/>
<a id="pl.5.13"></a><var>5.13</var>(d) Liability for payment of withholding taxes includes a third party lender or surety <br/>
<a id="pl.5.14"></a><var>5.14</var>described in section 
         <statute_ref>270C.59</statute_ref>.<br/>
<a id="pl.5.15"></a><var>5.15</var>(e) A partnership or S corporation required to withhold and remit tax under section <br/>
<statute_ref><a id="pl.5.16"></a><var>5.16</var>290.92, subdivisions 4b and 4c
         </statute_ref>, is liable for payment of the tax to the commissioner, and a <br/>
<a id="pl.5.17"></a><var>5.17</var>person having control of or responsibility for the withholding of the tax or the filing of <br/>
<a id="pl.5.18"></a><var>5.18</var>returns due in connection with the tax is personally liable for the tax due.<br/>
<a id="pl.5.19"></a><var>5.19</var>(f) A payor of sums required to be withheld under section 
         <statute_ref>290.9705, subdivision <br/>
<a id="pl.5.20"></a><var>5.20</var>1
         </statute_ref>, is liable to the state for the amount required to be deducted, and is not liable to an <br/>
<a id="pl.5.21"></a><var>5.21</var>out-of-state contractor for the amount of the payment.<br/>
<a id="pl.5.22"></a><var>5.22</var>(g) If an employer fails to withhold tax from the wages of an employee when <br/>
<a id="pl.5.23"></a><var>5.23</var>required to do so under section 290.92, subdivision 2a, by reason of treating such <br/>
<a id="pl.5.24"></a><var>5.24</var>employee as not being an employee, then the liability for tax is equal to three percent of <br/>
<a id="pl.5.25"></a><var>5.25</var>the wages paid to the employee. The liability for tax of an employee is not affected by <br/>
<a id="pl.5.26"></a><var>5.26</var>the assessment or collection of tax under this paragraph. The employer is not entitled to <br/>
<a id="pl.5.27"></a><var>5.27</var>recover from the employee any tax determined under this paragraph.<br/>
<a id="pl.5.28"></a><var>5.28</var><b>EFFECTIVE DATE.</b>This section is effective for taxes required to be withheld <br/>
<a id="pl.5.29"></a><var>5.29</var>after June 30, 2009.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.5.30"></a><var>5.30</var>    Sec. 6. Minnesota Statutes 2008, section 289A.38, subdivision 7, is amended to read:<br/>
<a id="pl.5.31"></a><var>5.31</var>    Subd. 7.  <b>Federal tax changes.</b> If the amount of income, items of tax preference, <br/>
<a id="pl.5.32"></a><var>5.32</var>deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for <br/>
<a id="pl.5.33"></a><var>5.33</var>any period, as reported to the Internal Revenue Service is changed or corrected by the <br/>
<a id="pl.5.34"></a><var>5.34</var>commissioner of Internal Revenue or other officer of the United States or other competent <br/>
<a id="pl.5.35"></a><var>5.35</var>authority, or where a renegotiation of a contract or subcontract with the United States <br/>
<a id="pl.6.1"></a><var>6.1</var>results in a change in income, items of tax preference, deductions, credits, or withholding <br/>
<a id="pl.6.2"></a><var>6.2</var>tax, or, in the case of estate tax, where there are adjustments to the taxable estate, the <br/>
<a id="pl.6.3"></a><var>6.3</var>taxpayer shall report the change or correction or renegotiation results in writing to the <br/>
<a id="pl.6.4"></a><var>6.4</var>commissioner. The report must be submitted within 180 days after the final determination <br/>
<a id="pl.6.5"></a><var>6.5</var>and must be in the form of either an amended Minnesota estate, withholding tax, corporate <br/>
<a id="pl.6.6"></a><var>6.6</var>franchise tax, or income tax return conceding the accuracy of the federal determination <br/>
<a id="pl.6.7"></a><var>6.7</var>or a letter detailing how the federal determination is incorrect or does not change the <br/>
<a id="pl.6.8"></a><var>6.8</var>Minnesota tax. An amended Minnesota income tax return must be accompanied by an <br/>
<a id="pl.6.9"></a><var>6.9</var>amended property tax refund return, if necessary. A taxpayer filing an amended federal <br/>
<a id="pl.6.10"></a><var>6.10</var>tax return must also file a copy of the amended return with the commissioner of revenue <br/>
<a id="pl.6.11"></a><var>6.11</var>within 180 days after filing the amended return. <br/>
<a id="pl.6.12"></a><var>6.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.6.13"></a><var>6.13</var>    Sec. 7. Minnesota Statutes 2008, section 290.01, subdivision 19b, is amended to read:<br/>
<a id="pl.6.14"></a><var>6.14</var>    Subd. 19b.  <b>Subtractions from federal taxable income.</b> For individuals, estates, <br/>
<a id="pl.6.15"></a><var>6.15</var>and trusts, there shall be subtracted from federal taxable income: <br/>
<a id="pl.6.16"></a><var>6.16</var>    (1) net interest income on obligations of any authority, commission, or <br/>
<a id="pl.6.17"></a><var>6.17</var>instrumentality of the United States to the extent includable in taxable income for federal <br/>
<a id="pl.6.18"></a><var>6.18</var>income tax purposes but exempt from state income tax under the laws of the United States; <br/>
<a id="pl.6.19"></a><var>6.19</var>    (2) if included in federal taxable income, the amount of any overpayment of income <br/>
<a id="pl.6.20"></a><var>6.20</var>tax to Minnesota or to any other state, for any previous taxable year, whether the amount <br/>
<a id="pl.6.21"></a><var>6.21</var>is received as a refund or as a credit to another taxable year's income tax liability; <br/>
<a id="pl.6.22"></a><var>6.22</var>    (3) the amount paid to others, less the amount used to claim the credit allowed under <br/>
<a id="pl.6.23"></a><var>6.23</var>section 
         <statute_ref>290.0674</statute_ref>, not to exceed $1,625 for each qualifying child in grades kindergarten <br/>
<a id="pl.6.24"></a><var>6.24</var>to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and <br/>
<a id="pl.6.25"></a><var>6.25</var>transportation of each qualifying child in attending an elementary or secondary school <br/>
<a id="pl.6.26"></a><var>6.26</var>situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a <br/>
<a id="pl.6.27"></a><var>6.27</var>resident of this state may legally fulfill the state's compulsory attendance laws, which <br/>
<a id="pl.6.28"></a><var>6.28</var>is not operated for profit, and which adheres to the provisions of the Civil Rights Act <br/>
<a id="pl.6.29"></a><var>6.29</var>of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or <br/>
<a id="pl.6.30"></a><var>6.30</var>tuition as defined in section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (1). As used in this clause, <br/>
<a id="pl.6.31"></a><var>6.31</var>"textbooks" includes books and other instructional materials and equipment purchased <br/>
<a id="pl.6.32"></a><var>6.32</var>or leased for use in elementary and secondary schools in teaching only those subjects <br/>
<a id="pl.6.33"></a><var>6.33</var>legally and commonly taught in public elementary and secondary schools in this state. <br/>
<a id="pl.6.34"></a><var>6.34</var>Equipment expenses qualifying for deduction includes expenses as defined and limited in <br/>
<a id="pl.6.35"></a><var>6.35</var>section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (3). "Textbooks" does not include instructional <br/>
<a id="pl.7.1"></a><var>7.1</var>books and materials used in the teaching of religious tenets, doctrines, or worship, the <br/>
<a id="pl.7.2"></a><var>7.2</var>purpose of which is to instill such tenets, doctrines, or worship, nor does it include books <br/>
<a id="pl.7.3"></a><var>7.3</var>or materials for, or transportation to, extracurricular activities including sporting events, <br/>
<a id="pl.7.4"></a><var>7.4</var>musical or dramatic events, speech activities, driver's education, or similar programs. No <br/>
<a id="pl.7.5"></a><var>7.5</var>deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or <br/>
<a id="pl.7.6"></a><var>7.6</var>the qualifying child's vehicle to provide such transportation for a qualifying child. For <br/>
<a id="pl.7.7"></a><var>7.7</var>purposes of the subtraction provided by this clause, "qualifying child" has the meaning <br/>
<a id="pl.7.8"></a><var>7.8</var>given in section 32(c)(3) of the Internal Revenue Code; <br/>
<a id="pl.7.9"></a><var>7.9</var>    (4) income as provided under section 
         <statute_ref>290.0802</statute_ref>; <br/>
<a id="pl.7.10"></a><var>7.10</var>    (5) to the extent included in federal adjusted gross income, income realized on <br/>
<a id="pl.7.11"></a><var>7.11</var>disposition of property exempt from tax under section 
         <statute_ref>290.491</statute_ref>; <br/>
<a id="pl.7.12"></a><var>7.12</var>    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) <br/>
<a id="pl.7.13"></a><var>7.13</var>of the Internal Revenue Code in determining federal taxable income by an individual <br/>
<a id="pl.7.14"></a><var>7.14</var>who does not itemize deductions for federal income tax purposes for the taxable year, an <br/>
<a id="pl.7.15"></a><var>7.15</var>amount equal to 50 percent of the excess of charitable contributions over $500 allowable <br/>
<a id="pl.7.16"></a><var>7.16</var>as a deduction for the taxable year under section 170(a) of the Internal Revenue Code and <br/>
<a id="pl.7.17"></a><var>7.17</var>under the provisions of Public Law 109-1; <br/>
<a id="pl.7.18"></a><var>7.18</var>    (7) for taxable years beginning before January 1, 2008, the amount of the federal <br/>
<a id="pl.7.19"></a><var>7.19</var>small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code <br/>
<a id="pl.7.20"></a><var>7.20</var>which is included in gross income under section 87 of the Internal Revenue Code; <br/>
<a id="pl.7.21"></a><var>7.21</var>    (8) for individuals who are allowed a federal foreign tax credit for taxes that do not <br/>
<a id="pl.7.22"></a><var>7.22</var>qualify for a credit under section 
         <statute_ref>290.06, subdivision 22</statute_ref>, an amount equal to the carryover <br/>
<a id="pl.7.23"></a><var>7.23</var>of subnational foreign taxes for the taxable year, but not to exceed the total subnational <br/>
<a id="pl.7.24"></a><var>7.24</var>foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, <br/>
<a id="pl.7.25"></a><var>7.25</var>"federal foreign tax credit" means the credit allowed under section 27 of the Internal <br/>
<a id="pl.7.26"></a><var>7.26</var>Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed <br/>
<a id="pl.7.27"></a><var>7.27</var>under section 904(c) of the Internal Revenue Code minus national level foreign taxes to <br/>
<a id="pl.7.28"></a><var>7.28</var>the extent they exceed the federal foreign tax credit; <br/>
<a id="pl.7.29"></a><var>7.29</var>    (9) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.7.30"></a><var>7.30</var>addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case <br/>
<a id="pl.7.31"></a><var>7.31</var>of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth <br/>
<a id="pl.7.32"></a><var>7.32</var>of the delayed depreciation. For purposes of this clause, "delayed depreciation" means <br/>
<a id="pl.7.33"></a><var>7.33</var>the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or <br/>
<a id="pl.7.34"></a><var>7.34</var>subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the <br/>
<a id="pl.7.35"></a><var>7.35</var>positive value of any net operating loss under section 172 of the Internal Revenue Code <br/>
<a id="pl.8.1"></a><var>8.1</var>generated for the tax year of the addition. The resulting delayed depreciation cannot be <br/>
<a id="pl.8.2"></a><var>8.2</var>less than zero; <br/>
<a id="pl.8.3"></a><var>8.3</var>    (10) job opportunity building zone income as provided under section 
         <statute_ref>469.316</statute_ref>; <br/>
<a id="pl.8.4"></a><var>8.4</var>    (11) to the extent included in federal taxable income, the amount of compensation <br/>
<a id="pl.8.5"></a><var>8.5</var>paid to members of the Minnesota National Guard or other reserve components of the <br/>
<a id="pl.8.6"></a><var>8.6</var>United States military for active service performed in Minnesota, excluding compensation <br/>
<a id="pl.8.7"></a><var>8.7</var>for services performed under the Active Guard Reserve (AGR) program. For purposes of <br/>
<a id="pl.8.8"></a><var>8.8</var>this clause, "active service" means (i) state active service as defined in section 
         <statute_ref>190.05, <br/>
<a id="pl.8.9"></a><var>8.9</var>subdivision 5a
         </statute_ref>, clause (1); (ii) federally funded state active service as defined in section <br/>
<statute_ref><a id="pl.8.10"></a><var>8.10</var>190.05, subdivision 5b
         </statute_ref>; or (iii) federal active service as defined in section 
         <statute_ref>190.05, <br/>
<a id="pl.8.11"></a><var>8.11</var>subdivision 5c
         </statute_ref>, but "active service" excludes service performed in accordance with section <br/>
<statute_ref><a id="pl.8.12"></a><var>8.12</var>190.08, subdivision 3
         </statute_ref>; <br/>
<a id="pl.8.13"></a><var>8.13</var>    (12) to the extent included in federal taxable income, the amount of compensation <br/>
<a id="pl.8.14"></a><var>8.14</var>paid to Minnesota residents who are members of the armed forces of the United States or <br/>
<a id="pl.8.15"></a><var>8.15</var>United Nations for active duty performed outside Minnesota under United States Code, <br/>
<a id="pl.8.16"></a><var>8.16</var>title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of <br/>
<a id="pl.8.17"></a><var>8.17</var>the United Nations; <br/>
<a id="pl.8.18"></a><var>8.18</var>    (13) an amount, not to exceed $10,000, equal to qualified expenses related to a <br/>
<a id="pl.8.19"></a><var>8.19</var>qualified donor's donation, while living, of one or more of the qualified donor's organs <br/>
<a id="pl.8.20"></a><var>8.20</var>to another person for human organ transplantation. For purposes of this clause, "organ" <br/>
<a id="pl.8.21"></a><var>8.21</var>means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; <br/>
<a id="pl.8.22"></a><var>8.22</var>"human organ transplantation" means the medical procedure by which transfer of a human <br/>
<a id="pl.8.23"></a><var>8.23</var>organ is made from the body of one person to the body of another person; "qualified <br/>
<a id="pl.8.24"></a><var>8.24</var>expenses" means unreimbursed expenses for both the individual and the qualified donor <br/>
<a id="pl.8.25"></a><var>8.25</var>for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses <br/>
<a id="pl.8.26"></a><var>8.26</var>may be subtracted under this clause only once; and "qualified donor" means the individual <br/>
<a id="pl.8.27"></a><var>8.27</var>or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An <br/>
<a id="pl.8.28"></a><var>8.28</var>individual may claim the subtraction in this clause for each instance of organ donation for <br/>
<a id="pl.8.29"></a><var>8.29</var>transplantation during the taxable year in which the qualified expenses occur; <br/>
<a id="pl.8.30"></a><var>8.30</var>    (14) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.8.31"></a><var>8.31</var>addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a <br/>
<a id="pl.8.32"></a><var>8.32</var>shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the <br/>
<a id="pl.8.33"></a><var>8.33</var>addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the <br/>
<a id="pl.8.34"></a><var>8.34</var>case of a shareholder of a corporation that is an S corporation, minus the positive value of <br/>
<a id="pl.8.35"></a><var>8.35</var>any net operating loss under section 172 of the Internal Revenue Code generated for the <br/>
<a id="pl.9.1"></a><var>9.1</var>tax year of the addition. If the net operating loss exceeds the addition for the tax year, a <br/>
<a id="pl.9.2"></a><var>9.2</var>subtraction is not allowed under this clause; <br/>
<a id="pl.9.3"></a><var>9.3</var>    (15) to the extent included in federal taxable income, compensation paid to a service <br/>
<a id="pl.9.4"></a><var>9.4</var>member as defined in United States Code, title 10, section 101(a)(5), for military service <br/>
<a id="pl.9.5"></a><var>9.5</var>as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2); <br/>
<a id="pl.9.6"></a><var>9.6</var>    (16) international economic development zone income as provided under section <br/>
<statute_ref><a id="pl.9.7"></a><var>9.7</var>469.325
         </statute_ref>; and<br/>
<a id="pl.9.8"></a><var>9.8</var>    (17) to the extent included in federal taxable income, the amount of national service <br/>
<a id="pl.9.9"></a><var>9.9</var>educational awards received from the National Service Trust under United States Code, <br/>
<a id="pl.9.10"></a><var>9.10</var>title 42, sections 12601 to 12604, for service in an approved Americorps National Service <br/>
<a id="pl.9.11"></a><var>9.11</var>program. <br/>
<a id="pl.9.12"></a><var>9.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.9.13"></a><var>9.13</var>    Sec. 8. Minnesota Statutes 2008, section 290.0671, subdivision 1, is amended to read:<br/>
<a id="pl.9.14"></a><var>9.14</var>    Subdivision 1. <b>Credit allowed.</b> (a) An individual is allowed a credit against the tax <br/>
<a id="pl.9.15"></a><var>9.15</var>imposed by this chapter equal to a percentage of earned income. To receive a credit, a <br/>
<a id="pl.9.16"></a><var>9.16</var>taxpayer must be eligible for a credit under section 32 of the Internal Revenue Code.<br/>
<a id="pl.9.17"></a><var>9.17</var>(b) For individuals with no qualifying children, the credit equals 
         <statute_ref>1.9125</statute_ref> percent of <br/>
<a id="pl.9.18"></a><var>9.18</var>the first $4,620 of earned income. The credit is reduced by 
         <statute_ref>1.9125</statute_ref> percent of earned <br/>
<a id="pl.9.19"></a><var>9.19</var>income or adjusted gross income, whichever is greater, in excess of $5,770, but in no <br/>
<a id="pl.9.20"></a><var>9.20</var>case is the credit less than zero.<br/>
<a id="pl.9.21"></a><var>9.21</var>(c) For individuals with one qualifying child, the credit equals 8.5 percent of the first <br/>
<a id="pl.9.22"></a><var>9.22</var>$6,920 of earned income and 8.5 percent of earned income over $12,080 but less than <br/>
<a id="pl.9.23"></a><var>9.23</var>$13,450. The credit is reduced by 
         <statute_ref>5.73</statute_ref> percent of earned income or adjusted gross income, <br/>
<a id="pl.9.24"></a><var>9.24</var>whichever is greater, in excess of $15,080, but in no case is the credit less than zero.<br/>
<a id="pl.9.25"></a><var>9.25</var>(d) For individuals with two or more qualifying children, the credit equals ten <br/>
<a id="pl.9.26"></a><var>9.26</var>percent of the first $9,720 of earned income and 20 percent of earned income over <br/>
<a id="pl.9.27"></a><var>9.27</var>$14,860 but less than $16,800. The credit is reduced by 10.3 percent of earned income <br/>
<a id="pl.9.28"></a><var>9.28</var>or adjusted gross income, whichever is greater, in excess of $17,890, but in no case is <br/>
<a id="pl.9.29"></a><var>9.29</var>the credit less than zero.<br/>
<a id="pl.9.30"></a><var>9.30</var>(e) For a nonresident or part-year resident, the credit must be allocated based on the <br/>
<a id="pl.9.31"></a><var>9.31</var>percentage calculated under section 
         <statute_ref>290.06, subdivision 2c</statute_ref>, paragraph (e).<br/>
<a id="pl.9.32"></a><var>9.32</var>(f) For a person who was a resident for the entire tax year and has earned income <br/>
<a id="pl.9.33"></a><var>9.33</var>not subject to tax under this chapter, including income excluded under section 
         <statute_ref>290.01, <br/>
<a id="pl.9.34"></a><var>9.34</var>subdivision 19b
         </statute_ref>, clause (10) or (16), the credit must be allocated based on the ratio of <br/>
<a id="pl.9.35"></a><var>9.35</var>federal adjusted gross income reduced by the earned income not subject to tax under <br/>
<a id="pl.10.1"></a><var>10.1</var>this chapter over federal adjusted gross income. For purposes of this paragraph, the <br/>
<a id="pl.10.2"></a><var>10.2</var>subtractions for military pay under section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clauses (11) and (12), <br/>
<a id="pl.10.3"></a><var>10.3</var>are not considered "earned income not subject to tax under this chapter."<br/>
<a id="pl.10.4"></a><var>10.4</var>For the purposes of this paragraph, the exclusion of combat pay under section 112 <br/>
<a id="pl.10.5"></a><var>10.5</var>of the Internal Revenue Code is not considered "earned income not subject to tax under <br/>
<a id="pl.10.6"></a><var>10.6</var>this chapter."<br/>
<a id="pl.10.7"></a><var>10.7</var>(g) For tax years beginning after December 31, 2001, and before December 31, <br/>
<a id="pl.10.8"></a><var>10.8</var>2004, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in <br/>
<a id="pl.10.9"></a><var>10.9</var>paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by <br/>
<a id="pl.10.10"></a><var>10.10</var>$1,000 for married taxpayers filing joint returns.<br/>
<a id="pl.10.11"></a><var>10.11</var>(h) For tax years beginning after December 31, 2004, and before December 31, <br/>
<a id="pl.10.12"></a><var>10.12</var>2007, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in <br/>
<a id="pl.10.13"></a><var>10.13</var>paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by <br/>
<a id="pl.10.14"></a><var>10.14</var>$2,000 for married taxpayers filing joint returns.<br/>
<a id="pl.10.15"></a><var>10.15</var>(i) (g) For tax years beginning after December 31, 2007, and before December <br/>
<a id="pl.10.16"></a><var>10.16</var>31, 2010, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in <br/>
<a id="pl.10.17"></a><var>10.17</var>paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by <br/>
<a id="pl.10.18"></a><var>10.18</var>$3,000 for married taxpayers filing joint returns. For tax years beginning after December <br/>
<a id="pl.10.19"></a><var>10.19</var>31, 2008, the commissioner shall annually adjust the $3,000 is adjusted annually for <br/>
<a id="pl.10.20"></a><var>10.20</var>inflation under subdivision 7. by the percentage determined pursuant to the provisions <br/>
<a id="pl.10.21"></a><var>10.21</var>of section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B), the word <br/>
<a id="pl.10.22"></a><var>10.22</var>"2007" shall be substituted for the word "1992." For 2009, the commissioner shall then <br/>
<a id="pl.10.23"></a><var>10.23</var>determine the percent change from the 12 months ending on August 31, 2007, to the 12 <br/>
<a id="pl.10.24"></a><var>10.24</var>months ending on August 31, 2008, and in each subsequent year, from the 12 months <br/>
<a id="pl.10.25"></a><var>10.25</var>ending on August 31, 2007, to the 12 months ending on August 31 of the year preceding <br/>
<a id="pl.10.26"></a><var>10.26</var>the taxable year. The earned income thresholds as adjusted for inflation must be rounded <br/>
<a id="pl.10.27"></a><var>10.27</var>to the nearest $10. If the amount ends in $5, the amount is rounded up to the nearest $10. <br/>
<a id="pl.10.28"></a><var>10.28</var>The determination of the commissioner under this subdivision is not a rule under the <br/>
<a id="pl.10.29"></a><var>10.29</var>Administrative Procedure Act.<br/>
<a id="pl.10.30"></a><var>10.30</var>(j) (h) The commissioner shall construct tables showing the amount of the credit <br/>
<a id="pl.10.31"></a><var>10.31</var>at various income levels and make them available to taxpayers. The tables shall follow <br/>
<a id="pl.10.32"></a><var>10.32</var>the schedule contained in this subdivision, except that the commissioner may graduate <br/>
<a id="pl.10.33"></a><var>10.33</var>the transition between income brackets.<br/>
<a id="pl.10.34"></a><var>10.34</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.10.35"></a><var>10.35</var>December 31, 2008.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.11.1"></a><var>11.1</var>    Sec. 9. Minnesota Statutes 2008, section 290A.10, is amended to read:<br/>
<a id="pl.11.2"></a><var>11.2</var><b>290A.10 PROOF OF TAXES PAID.</b><br/>
<a id="pl.11.3"></a><var>11.3</var>Every claimant who files a claim for relief for property taxes payable shall include <br/>
<a id="pl.11.4"></a><var>11.4</var>with the claim a property tax statement or a reproduction thereof in a form deemed <br/>
<a id="pl.11.5"></a><var>11.5</var>satisfactory by the commissioner of revenue indicating that there are no delinquent <br/>
<a id="pl.11.6"></a><var>11.6</var>property taxes on the homestead. Indication on the property tax statement from the county <br/>
<a id="pl.11.7"></a><var>11.7</var>treasurer that there are no delinquent taxes on the homestead shall be sufficient proof. <br/>
<a id="pl.11.8"></a><var>11.8</var>Taxes included in a confession of judgment under section 277.23 or
<statute_ref>279.37</statute_ref> shall not <br/>
<a id="pl.11.9"></a><var>11.9</var>constitute delinquent taxes as long as the claimant is current on the payments required to <br/>
<a id="pl.11.10"></a><var>11.10</var>be made under section 277.23 or
<statute_ref>279.37</statute_ref>.<br/>
<a id="pl.11.11"></a><var>11.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.11.12"></a><var>11.12</var>    Sec. 10. Minnesota Statutes 2008, section 290A.14, is amended to read:<br/>
<a id="pl.11.13"></a><var>11.13</var><b>290A.14 PROPERTY TAX STATEMENT.</b><br/>
<a id="pl.11.14"></a><var>11.14</var>The county treasurer shall prepare and send a sufficient number of copies of the <br/>
<a id="pl.11.15"></a><var>11.15</var>property tax statement to the owner, and to the owner's escrow agent if the taxes are <br/>
<a id="pl.11.16"></a><var>11.16</var>paid via an escrow account, to enable the owner to comply with the filing requirements <br/>
<a id="pl.11.17"></a><var>11.17</var>of this chapter and to retain one copy as a record. The property tax statement, in a form <br/>
<a id="pl.11.18"></a><var>11.18</var>prescribed by the commissioner, shall indicate the manner in which the claimant may <br/>
<a id="pl.11.19"></a><var>11.19</var>claim relief from the state under both this chapter and chapter 290B, and the amount of the <br/>
<a id="pl.11.20"></a><var>11.20</var>tax for which the applicant may claim relief. The statement shall also indicate if there <br/>
<a id="pl.11.21"></a><var>11.21</var>are delinquent property taxes on the property in the preceding year. Taxes included in a <br/>
<a id="pl.11.22"></a><var>11.22</var>confession of judgment under section 277.23 or
<statute_ref>279.37</statute_ref> shall not constitute delinquent <br/>
<a id="pl.11.23"></a><var>11.23</var>taxes as long as the claimant is current on the payments required to be made under section <br/>
<a id="pl.11.24"></a><var>11.24</var>277.23 or
<statute_ref>279.37</statute_ref>.<br/>
<a id="pl.11.25"></a><var>11.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.11.26"></a><var>11.26</var>    Sec. 11. <b> REPEALER.</b><br/>
<a id="pl.11.27"></a><var>11.27</var>Minnesota Rules, part 8009.3000, is repealed.<br/>
<a id="pl.11.28"></a><var>11.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.12.3"></a><var>12.3</var>    Section 1. Minnesota Statutes 2008, section 297A.70, subdivision 2, is amended to <br/>
<a id="pl.12.4"></a><var>12.4</var>read:<br/>
<a id="pl.12.5"></a><var>12.5</var>    Subd. 2. <b>Sales to government.</b> (a) All sales, except those listed in paragraph (b), <br/>
<a id="pl.12.6"></a><var>12.6</var>to the following governments and political subdivisions, or to the listed agencies or <br/>
<a id="pl.12.7"></a><var>12.7</var>instrumentalities of governments and political subdivisions, are exempt:<br/>
<a id="pl.12.8"></a><var>12.8</var>(1) the United States and its agencies and instrumentalities;<br/>
<a id="pl.12.9"></a><var>12.9</var>(2) school districts, the University of Minnesota, state universities, community <br/>
<a id="pl.12.10"></a><var>12.10</var>colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts <br/>
<a id="pl.12.11"></a><var>12.11</var>Education, and an instrumentality of a political subdivision that is accredited as an <br/>
<a id="pl.12.12"></a><var>12.12</var>optional/special function school by the North Central Association of Colleges and Schools;<br/>
<a id="pl.12.13"></a><var>12.13</var>(3) hospitals and nursing homes owned and operated by political subdivisions of <br/>
<a id="pl.12.14"></a><var>12.14</var>the state of tangible personal property and taxable services used at or by hospitals and <br/>
<a id="pl.12.15"></a><var>12.15</var>nursing homes;<br/>
<a id="pl.12.16"></a><var>12.16</var>(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip <br/>
<a id="pl.12.17"></a><var>12.17</var>operations provided for in section 
         <statute_ref>473.4051</statute_ref>; <br/>
<a id="pl.12.18"></a><var>12.18</var>(5) other states or political subdivisions of other states, if the sale would be exempt <br/>
<a id="pl.12.19"></a><var>12.19</var>from taxation if it occurred in that state; and<br/>
<a id="pl.12.20"></a><var>12.20</var>(6) sales to public libraries, public library systems, multicounty, multitype library <br/>
<a id="pl.12.21"></a><var>12.21</var>systems as defined in section 
         <statute_ref>134.001</statute_ref>, county law libraries under chapter 134A, state <br/>
<a id="pl.12.22"></a><var>12.22</var>agency libraries, the state library under section 
         <statute_ref>480.09</statute_ref>, and the Legislative Reference <br/>
<a id="pl.12.23"></a><var>12.23</var>Library. <br/>
<a id="pl.12.24"></a><var>12.24</var>(b) This exemption does not apply to the sales of the following products and services:<br/>
<a id="pl.12.25"></a><var>12.25</var>(1) building, construction, or reconstruction materials purchased by a contractor <br/>
<a id="pl.12.26"></a><var>12.26</var>or a subcontractor as a part of a lump-sum contract or similar type of contract with a <br/>
<a id="pl.12.27"></a><var>12.27</var>guaranteed maximum price covering both labor and materials for use in the construction, <br/>
<a id="pl.12.28"></a><var>12.28</var>alteration, or repair of a building or facility;<br/>
<a id="pl.12.29"></a><var>12.29</var>(2) construction materials purchased by tax exempt entities or their contractors to <br/>
<a id="pl.12.30"></a><var>12.30</var>be used in constructing buildings or facilities which will not be used principally by the <br/>
<a id="pl.12.31"></a><var>12.31</var>tax exempt entities;<br/>
<a id="pl.12.32"></a><var>12.32</var>(3) the leasing of a motor vehicle as defined in section 
         <statute_ref>297B.01, subdivision 11</statute_ref>, <br/>
<a id="pl.12.33"></a><var>12.33</var>except for leases entered into by the United States or its agencies or instrumentalities; or <br/>
<a id="pl.12.34"></a><var>12.34</var>(4) lodging as defined under section 
         <statute_ref>297A.61, subdivision 3</statute_ref>, paragraph (g), clause <br/>
<a id="pl.12.35"></a><var>12.35</var>(2), and prepared food, candy, and soft drinks, and alcoholic beverages as defined in <br/>
<a id="pl.13.1"></a><var>13.1</var>section 297A.67, subdivision 2, except for lodging, prepared food, candy, and soft <br/>
<a id="pl.13.2"></a><var>13.2</var>drinks, and alcoholic beverages purchased directly by the United States or its agencies <br/>
<a id="pl.13.3"></a><var>13.3</var>or instrumentalities. <br/>
<a id="pl.13.4"></a><var>13.4</var>(c) As used in this subdivision, "school districts" means public school entities and <br/>
<a id="pl.13.5"></a><var>13.5</var>districts of every kind and nature organized under the laws of the state of Minnesota, and <br/>
<a id="pl.13.6"></a><var>13.6</var>any instrumentality of a school district, as defined in section 
         <statute_ref>471.59</statute_ref>. <br/>
<a id="pl.13.7"></a><var>13.7</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.13.8"></a><var>13.8</var>June 30, 2009.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.13.9"></a><var>13.9</var>    Sec. 2. Minnesota Statutes 2008, section 297A.70, subdivision 4, is amended to read:<br/>
<a id="pl.13.10"></a><var>13.10</var>    Subd. 4. <b>Sales to nonprofit groups.</b> (a) All sales, except those listed in paragraph <br/>
<a id="pl.13.11"></a><var>13.11</var>(b), to the following "nonprofit organizations" are exempt:<br/>
<a id="pl.13.12"></a><var>13.12</var>(1) a corporation, society, association, foundation, or institution organized and <br/>
<a id="pl.13.13"></a><var>13.13</var>operated exclusively for charitable, religious, or educational purposes if the item <br/>
<a id="pl.13.14"></a><var>13.14</var>purchased is used in the performance of charitable, religious, or educational functions; and<br/>
<a id="pl.13.15"></a><var>13.15</var>(2) any senior citizen group or association of groups that:<br/>
<a id="pl.13.16"></a><var>13.16</var>(i) in general limits membership to persons who are either age 55 or older, or <br/>
<a id="pl.13.17"></a><var>13.17</var>physically disabled; and<br/>
<a id="pl.13.18"></a><var>13.18</var>(ii) is organized and operated exclusively for pleasure, recreation, and other <br/>
<a id="pl.13.19"></a><var>13.19</var>nonprofit purposes, not including housing, no part of the net earnings of which inures to <br/>
<a id="pl.13.20"></a><var>13.20</var>the benefit of any private shareholders.; and<br/>
<a id="pl.13.21"></a><var>13.21</var>(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.<br/>
<a id="pl.13.22"></a><var>13.22</var>For purposes of this subdivision, charitable purpose includes the maintenance of a <br/>
<a id="pl.13.23"></a><var>13.23</var>cemetery owned by a religious organization.<br/>
<a id="pl.13.24"></a><var>13.24</var>(b) This exemption does not apply to the following sales:<br/>
<a id="pl.13.25"></a><var>13.25</var>(1) building, construction, or reconstruction materials purchased by a contractor <br/>
<a id="pl.13.26"></a><var>13.26</var>or a subcontractor as a part of a lump-sum contract or similar type of contract with a <br/>
<a id="pl.13.27"></a><var>13.27</var>guaranteed maximum price covering both labor and materials for use in the construction, <br/>
<a id="pl.13.28"></a><var>13.28</var>alteration, or repair of a building or facility;<br/>
<a id="pl.13.29"></a><var>13.29</var>(2) construction materials purchased by tax-exempt entities or their contractors to <br/>
<a id="pl.13.30"></a><var>13.30</var>be used in constructing buildings or facilities that will not be used principally by the <br/>
<a id="pl.13.31"></a><var>13.31</var>tax-exempt entities; and<br/>
<a id="pl.13.32"></a><var>13.32</var>(3) lodging as defined under section 
         <statute_ref>297A.61, subdivision 3</statute_ref>, paragraph (g), clause <br/>
<a id="pl.13.33"></a><var>13.33</var>(2), and prepared food, candy, and soft drinks, and alcoholic beverages as defined in <br/>
<a id="pl.14.1"></a><var>14.1</var>section 297A.67, subdivision 2, except wine purchased by an established religious <br/>
<a id="pl.14.2"></a><var>14.2</var>organization for sacramental purposes; and <br/>
<a id="pl.14.3"></a><var>14.3</var>(4) leasing of a motor vehicle as defined in section 
         <statute_ref>297B.01, subdivision 11</statute_ref>, except <br/>
<a id="pl.14.4"></a><var>14.4</var>as provided in paragraph (c). <br/>
<a id="pl.14.5"></a><var>14.5</var>(c) This exemption applies to the leasing of a motor vehicle as defined in section <br/>
<statute_ref><a id="pl.14.6"></a><var>14.6</var>297B.01, subdivision 11
         </statute_ref>, only if the vehicle is: <br/>
<a id="pl.14.7"></a><var>14.7</var>(1) a truck, as defined in section 
         <statute_ref>168.002</statute_ref>, a bus, as defined in section 
         <statute_ref>168.002</statute_ref>, or a <br/>
<a id="pl.14.8"></a><var>14.8</var>passenger automobile, as defined in section 
         <statute_ref>168.002</statute_ref>, if the automobile is designed and <br/>
<a id="pl.14.9"></a><var>14.9</var>used for carrying more than nine persons including the driver; and <br/>
<a id="pl.14.10"></a><var>14.10</var>(2) intended to be used primarily to transport tangible personal property or <br/>
<a id="pl.14.11"></a><var>14.11</var>individuals, other than employees, to whom the organization provides service in <br/>
<a id="pl.14.12"></a><var>14.12</var>performing its charitable, religious, or educational purpose.<br/>
<a id="pl.14.13"></a><var>14.13</var>(d) A limited liability company also qualifies for exemption under this subdivision if <br/>
<a id="pl.14.14"></a><var>14.14</var>(1) it consists of a sole member that would qualify for the exemption, and (2) the items <br/>
<a id="pl.14.15"></a><var>14.15</var>purchased qualify for the exemption.<br/>
<a id="pl.14.16"></a><var>14.16</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.14.17"></a><var>14.17</var>June 30, 2009, except that the amendment to paragraph (a) is effective the day following <br/>
<a id="pl.14.18"></a><var>14.18</var>final enactment.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.14.19"></a><var>14.19</var>    Sec. 3. Minnesota Statutes 2008, section 297A.992, subdivision 2, is amended to read:<br/>
<a id="pl.14.20"></a><var>14.20</var>    Subd. 2.  <b>Authorization; rates.</b> (a) Notwithstanding section 
         <statute_ref>297A.99, subdivisions <br/>
</statute_ref><a id="pl.14.21"></a><var>14.21</var>1, 2, and 3, or 
         <statute_ref>477A.016</statute_ref>, or any other law, the board of a county participating in a <br/>
<a id="pl.14.22"></a><var>14.22</var>joint powers agreement as specified in this section shall impose by resolution (1) a <br/>
<a id="pl.14.23"></a><var>14.23</var>transportation sales and use tax at a rate of one-quarter of one percent on retail sales and <br/>
<a id="pl.14.24"></a><var>14.24</var>uses taxable under this chapter, and (2) an excise tax of $20 per motor vehicle, as defined <br/>
<a id="pl.14.25"></a><var>14.25</var>in section 297B.01, subdivision 5, purchased or acquired from any person engaged in the <br/>
<a id="pl.14.26"></a><var>14.26</var>business of selling motor vehicles at retail, occurring within the jurisdiction of the taxing <br/>
<a id="pl.14.27"></a><var>14.27</var>authority. The taxes authorized are to fund transportation improvements as specified in <br/>
<a id="pl.14.28"></a><var>14.28</var>this section, including debt service on obligations issued to finance such improvements <br/>
<a id="pl.14.29"></a><var>14.29</var>pursuant to subdivision 7. <br/>
<a id="pl.14.30"></a><var>14.30</var>    (b) The tax imposed under this section is not included in determining if the total tax <br/>
<a id="pl.14.31"></a><var>14.31</var>on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986, <br/>
<a id="pl.14.32"></a><var>14.32</var>chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article <br/>
<a id="pl.14.33"></a><var>14.33</var>12, section 87, or in determining a tax that may be imposed under any other limitations. <br/>
<a id="pl.14.34"></a><var>14.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.15.1"></a><var>15.1</var>    Sec. 4. Minnesota Statutes 2008, section 297A.993, subdivision 1, is amended to read:<br/>
<a id="pl.15.2"></a><var>15.2</var>    Subdivision 1.  <b>Authorization; rates.</b> Notwithstanding section 
         <statute_ref>297A.99</statute_ref>, <br/>
<a id="pl.15.3"></a><var>15.3</var>subdivisions 1, 2, 3, 5, and 13, or 
         <statute_ref>477A.016</statute_ref>, or any other law, the board of a county outside <br/>
<a id="pl.15.4"></a><var>15.4</var>the metropolitan transportation area, as defined under section 
         <statute_ref>297A.992, subdivision 1</statute_ref>, or <br/>
<a id="pl.15.5"></a><var>15.5</var>more than one county outside the metropolitan transportation area acting under a joint <br/>
<a id="pl.15.6"></a><var>15.6</var>powers agreement, may impose (1) a transportation sales tax at a rate of up to one-half of <br/>
<a id="pl.15.7"></a><var>15.7</var>one percent on retail sales and uses taxable under this chapter, and (2) an excise tax of $20 <br/>
<a id="pl.15.8"></a><var>15.8</var>per motor vehicle, as defined in section 297B.01, subdivision 5, purchased or acquired <br/>
<a id="pl.15.9"></a><var>15.9</var>from any person engaged in the business of selling motor vehicles at retail, occurring <br/>
<a id="pl.15.10"></a><var>15.10</var>within the jurisdiction of the taxing authority. The taxes imposed under this section are <br/>
<a id="pl.15.11"></a><var>15.11</var>subject to approval by a majority of the voters in each of the counties affected at a general <br/>
<a id="pl.15.12"></a><var>15.12</var>election who vote on the question to impose the taxes. <br/>
<a id="pl.15.13"></a><var>15.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.15.14"></a><var>15.14</var>    Sec. 5. <b> REPEALER.</b><br/>
<a id="pl.15.15"></a><var>15.15</var>Minnesota Statutes 2008, section 297A.67, subdivision 24, is repealed.<br/>
<a id="pl.15.16"></a><var>15.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.15.19"></a><var>15.19</var>    Section 1. Minnesota Statutes 2008, section 287.04, is amended to read:<br/>
<a id="pl.15.20"></a><var>15.20</var><b>287.04 EXEMPTIONS.</b><br/>
<a id="pl.15.21"></a><var>15.21</var>The tax imposed by section 
         <statute_ref>287.035</statute_ref> does not apply to:<br/>
<a id="pl.15.22"></a><var>15.22</var>(a) A decree of marriage dissolution or an instrument made pursuant to it.<br/>
<a id="pl.15.23"></a><var>15.23</var>(b) A mortgage given to correct a misdescription of the mortgaged property.<br/>
<a id="pl.15.24"></a><var>15.24</var>(c) A mortgage or other instrument that adds additional security for the same debt <br/>
<a id="pl.15.25"></a><var>15.25</var>for which mortgage registry tax has been paid.<br/>
<a id="pl.15.26"></a><var>15.26</var>(d) A contract for the conveyance of any interest in real property, including a <br/>
<a id="pl.15.27"></a><var>15.27</var>contract for deed.<br/>
<a id="pl.15.28"></a><var>15.28</var>(e) A mortgage secured by real property subject to the minerals production tax of <br/>
<a id="pl.15.29"></a><var>15.29</var>sections 
         <statute_ref>298.24</statute_ref> to 
         <statute_ref>298.28</statute_ref>.<br/>
<a id="pl.15.30"></a><var>15.30</var>(f) The principal amount of a mortgage loan made under a low and moderate <br/>
<a id="pl.15.31"></a><var>15.31</var>income or other affordable housing program, if the mortgagee is a federal, state, or local <br/>
<a id="pl.15.32"></a><var>15.32</var>government agency.<br/>
<a id="pl.15.33"></a><var>15.33</var>(g) Mortgages granted by fraternal benefit societies subject to section 
         <statute_ref>64B.24</statute_ref>.<br/>
<a id="pl.16.1"></a><var>16.1</var>(h) A mortgage amendment or extension, as defined in section 
         <statute_ref>287.01</statute_ref>.<br/>
<a id="pl.16.2"></a><var>16.2</var>(i) An agricultural mortgage if the proceeds of the loan secured by the mortgage are <br/>
<a id="pl.16.3"></a><var>16.3</var>used to acquire or improve real property classified under section 
         <statute_ref>273.13, subdivision 23</statute_ref>, <br/>
<a id="pl.16.4"></a><var>16.4</var>paragraph (a), or (b), clause (1), (2), or (3).<br/>
<a id="pl.16.5"></a><var>16.5</var>(j) A mortgage on an armory building as set forth in section 
         <statute_ref>193.147</statute_ref>.<br/>
<a id="pl.16.6"></a><var>16.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.16.7"></a><var>16.7</var>    Sec. 2. Minnesota Statutes 2008, section 287.05, is amended by adding a subdivision <br/>
<a id="pl.16.8"></a><var>16.8</var>to read:<br/>
<a id="pl.16.9"></a><var>16.9</var>    Subd. 9. <b>Modification of mortgage.</b> If a mortgage, or a document modifying a <br/>
<a id="pl.16.10"></a><var>16.10</var>mortgage, contains more than one statement that purports to limit: the enforcement of <br/>
<a id="pl.16.11"></a><var>16.11</var>the mortgage to a certain dollar amount; the tax imposed on the mortgage under this <br/>
<a id="pl.16.12"></a><var>16.12</var>chapter; or the effect of a modifying document, including but not limited to the statements <br/>
<a id="pl.16.13"></a><var>16.13</var>authorized in subdivisions 1, 1a, and 8, then the tax must be imposed based on the <br/>
<a id="pl.16.14"></a><var>16.14</var>combined effect, if any, of all the statements.<br/>
<a id="pl.16.15"></a><var>16.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.16.16"></a><var>16.16</var>    Sec. 3. Minnesota Statutes 2008, section 287.22, is amended to read:<br/>
<a id="pl.16.17"></a><var>16.17</var><b>287.22 EXEMPTIONS. </b><br/>
<a id="pl.16.18"></a><var>16.18</var>    The tax imposed by section 
         <statute_ref>287.21</statute_ref> does not apply to: <br/>
<a id="pl.16.19"></a><var>16.19</var>    (1) an executory contract for the sale of real property under which the purchaser is <br/>
<a id="pl.16.20"></a><var>16.20</var>entitled to or does take possession of the real property, or any assignment or cancellation <br/>
<a id="pl.16.21"></a><var>16.21</var>of the contract; <br/>
<a id="pl.16.22"></a><var>16.22</var>    (2) a mortgage or an amendment, assignment, extension, partial release, or <br/>
<a id="pl.16.23"></a><var>16.23</var>satisfaction of a mortgage; <br/>
<a id="pl.16.24"></a><var>16.24</var>    (3) a will; <br/>
<a id="pl.16.25"></a><var>16.25</var>    (4) a plat; <br/>
<a id="pl.16.26"></a><var>16.26</var>    (5) a lease, amendment of lease, assignment of lease, or memorandum of lease; <br/>
<a id="pl.16.27"></a><var>16.27</var>    (6) a deed, instrument, or writing in which the United States or any agency or <br/>
<a id="pl.16.28"></a><var>16.28</var>instrumentality thereof is the grantor, assignor, transferor, conveyor, grantee, or assignee; <br/>
<a id="pl.16.29"></a><var>16.29</var>    (7) a deed for a cemetery lot or lots; <br/>
<a id="pl.16.30"></a><var>16.30</var>    (8) a deed of distribution by a personal representative; <br/>
<a id="pl.16.31"></a><var>16.31</var>    (9) a deed to or from a co-owner partitioning their undivided interest in the same <br/>
<a id="pl.16.32"></a><var>16.32</var>piece of real property; <br/>
<a id="pl.17.1"></a><var>17.1</var>    (10) a deed or other instrument of conveyance issued pursuant to a permanent school <br/>
<a id="pl.17.2"></a><var>17.2</var>fund land exchange under section 
         <statute_ref>92.121</statute_ref> and related laws; <br/>
<a id="pl.17.3"></a><var>17.3</var>    (11) a referee's or sheriff's certificate of sale in a mortgage or lien foreclosure sale; <br/>
<a id="pl.17.4"></a><var>17.4</var>    (12) a referee's, sheriff's, or certificate holder's certificate of redemption from a <br/>
<a id="pl.17.5"></a><var>17.5</var>mortgage or lien foreclosure sale issued under section 580.23 or other statute applicable to <br/>
<a id="pl.17.6"></a><var>17.6</var>redemption by an owner of real property; <br/>
<a id="pl.17.7"></a><var>17.7</var>    (13) a deed, instrument, or writing which grants, creates, modifies, or terminates <br/>
<a id="pl.17.8"></a><var>17.8</var>an easement; <br/>
<a id="pl.17.9"></a><var>17.9</var>    (14) a decree of marriage dissolution, as defined in section 
         <statute_ref>287.01, subdivision 4</statute_ref>, <br/>
<a id="pl.17.10"></a><var>17.10</var>or a deed or other instrument between the parties to the dissolution made pursuant to the <br/>
<a id="pl.17.11"></a><var>17.11</var>terms of the decree; and <br/>
<a id="pl.17.12"></a><var>17.12</var>    (15) a transfer on death deed under section 
         <statute_ref>507.071</statute_ref>, and any affidavit or other <br/>
<a id="pl.17.13"></a><var>17.13</var>document to the extent it references a transfer on death deed. <br/>
<a id="pl.17.14"></a><var>17.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.17.15"></a><var>17.15</var>    Sec. 4. Minnesota Statutes 2008, section 287.25, is amended to read:<br/>
<a id="pl.17.16"></a><var>17.16</var><b>287.25 PAYMENT OF TAX</b><b>; STAMPS</b><b>.</b><br/>
<a id="pl.17.17"></a><var>17.17</var>    Except for documents filed electronically, the county board shall determine the <br/>
<a id="pl.17.18"></a><var>17.18</var>method for collection of the tax imposed by section 
<statute_ref>287.21</statute_ref>: <br/>
<a id="pl.17.19"></a><var>17.19</var>    (1) The tax imposed by section 
<statute_ref>287.21</statute_ref> may be paid by the affixing of a documentary <br/>
<a id="pl.17.20"></a><var>17.20</var>stamp or stamps in the amount of the tax to the document or instrument with respect to <br/>
<a id="pl.17.21"></a><var>17.21</var>which the tax is paid, provided that the county board may permit the payment of the <br/>
<a id="pl.17.22"></a><var>17.22</var>tax without the affixing of the documentary stamps and in such cases shall direct the <br/>
<a id="pl.17.23"></a><var>17.23</var>treasurer to endorse a receipt for such tax upon the face of the document or instrument. <br/>
<a id="pl.17.24"></a><var>17.24</var>Documents submitted electronically must have the deed tax data affixed electronically and <br/>
<a id="pl.17.25"></a><var>17.25</var>the tax paid as provided in section 
<statute_ref>287.08</statute_ref>. <br/>
<a id="pl.17.26"></a><var>17.26</var>    (2) the tax imposed by section 
         <statute_ref>287.21</statute_ref> may must be paid in the manner prescribed by <br/>
<a id="pl.17.27"></a><var>17.27</var>section 
         <statute_ref>287.08</statute_ref> relating to payment of mortgage registration tax, and the treasurer must <br/>
<a id="pl.17.28"></a><var>17.28</var>endorse a receipt for the tax on the face of the document or instrument. <br/>
<a id="pl.17.29"></a><var>17.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.17.30"></a><var>17.30</var>    Sec. 5. Minnesota Statutes 2008, section 295.56, is amended to read:<br/>
<a id="pl.17.31"></a><var>17.31</var><b>295.56 TRANSFER OF ACCOUNTS RECEIVABLE.</b><br/>
<a id="pl.17.32"></a><var>17.32</var>When a hospital or, surgical center,  health care provider, or wholesale drug <br/>
<a id="pl.17.33"></a><var>17.33</var>distributor transfers, assigns, or sells accounts receivable to another person who is subject <br/>
<a id="pl.18.1"></a><var>18.1</var>to tax under this chapter, liability for the tax on the accounts receivable is imposed on the <br/>
<a id="pl.18.2"></a><var>18.2</var>transferee, assignee, or buyer of the accounts receivable. No liability for these accounts <br/>
<a id="pl.18.3"></a><var>18.3</var>receivable is imposed on the transferor, assignor, or seller of the accounts receivable.<br/>
<a id="pl.18.4"></a><var>18.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.18.5"></a><var>18.5</var>    Sec. 6. Minnesota Statutes 2008, section 295.57, subdivision 5, is amended to read:<br/>
<a id="pl.18.6"></a><var>18.6</var>    Subd. 5. <b>Exemption for amounts paid for legend drugs.</b> If a hospital, surgical <br/>
<a id="pl.18.7"></a><var>18.7</var>center, or health care provider cannot determine the actual cost or reimbursement of <br/>
<a id="pl.18.8"></a><var>18.8</var>legend drugs under the exemption provided in section 
         <statute_ref>295.53, subdivision 1</statute_ref>, paragraph <br/>
<a id="pl.18.9"></a><var>18.9</var>(a), clause (6) (5), the following method must be used: <br/>
<a id="pl.18.10"></a><var>18.10</var>A hospital, surgical center, or health care provider must determine the amount paid <br/>
<a id="pl.18.11"></a><var>18.11</var>for legend drugs used during the month or quarter and multiply that amount by a ratio, <br/>
<a id="pl.18.12"></a><var>18.12</var>the numerator of which is the total amount received for taxable patient services, and the <br/>
<a id="pl.18.13"></a><var>18.13</var>denominator of which is the total amount received for all patient services, including <br/>
<a id="pl.18.14"></a><var>18.14</var>amounts exempt under section 
         <statute_ref>295.53, subdivision 1</statute_ref>. The result represents the allowable <br/>
<a id="pl.18.15"></a><var>18.15</var>exemption for the monthly or quarterly cost of drugs. <br/>
<a id="pl.18.16"></a><var>18.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.18.17"></a><var>18.17</var>    Sec. 7. Minnesota Statutes 2008, section 296A.21, subdivision 1, is amended to read:<br/>
<a id="pl.18.18"></a><var>18.18</var>    Subdivision 1. <b>General rules.</b> (a) The commissioner shall make determinations, <br/>
<a id="pl.18.19"></a><var>18.19</var>corrections, assessments, and refunds with respect to taxes and fees under this chapter, <br/>
<a id="pl.18.20"></a><var>18.20</var>including interest, additions to taxes, and assessable penalties. Except as otherwise <br/>
<a id="pl.18.21"></a><var>18.21</var>provided in this section, the amount of taxes assessable must be assessed within 3-1/2 <br/>
<a id="pl.18.22"></a><var>18.22</var>years after the date the return is filed. For purposes of this section, a tax return filed before <br/>
<a id="pl.18.23"></a><var>18.23</var>the last day prescribed by law for filing is considered to be filed on the last day.<br/>
<a id="pl.18.24"></a><var>18.24</var>(b) A claim for a refund of an overpayment of state tax or fees must be filed within <br/>
<a id="pl.18.25"></a><var>18.25</var>3-1/2 years from the date prescribed for filing the return, plus any extension of time <br/>
<a id="pl.18.26"></a><var>18.26</var>granted for filing the return, but only if filed within the extended time; or the claim must <br/>
<a id="pl.18.27"></a><var>18.27</var>be filed within one year from the date of an order assessing tax or fees, or from the date of <br/>
<a id="pl.18.28"></a><var>18.28</var>a return filed by the commissioner, upon payment in full of the tax, fees, penalties, and <br/>
<a id="pl.18.29"></a><var>18.29</var>interest shown on the order or return, whichever period expires later.<br/>
<a id="pl.18.30"></a><var>18.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.18.31"></a><var>18.31</var>    Sec. 8. Minnesota Statutes 2008, section 297E.02, subdivision 4, is amended to read:<br/>
<a id="pl.19.1"></a><var>19.1</var>    Subd. 4. <b>Pull-tab and tipboard tax.</b> (a) A tax is imposed on the sale of each deal <br/>
<a id="pl.19.2"></a><var>19.2</var>of pull-tabs and tipboards sold by a distributor. The rate of the tax is 1.7 percent of the <br/>
<a id="pl.19.3"></a><var>19.3</var>ideal gross of the pull-tab or tipboard deal. The sales tax imposed by chapter 297A on the <br/>
<a id="pl.19.4"></a><var>19.4</var>sale of the pull-tabs and tipboards by the distributor is imposed on the retail sales price <br/>
<a id="pl.19.5"></a><var>19.5</var>less the tax imposed by this subdivision. The retail sale of pull-tabs or tipboards by the <br/>
<a id="pl.19.6"></a><var>19.6</var>organization is exempt from taxes imposed by chapter 297A and is exempt from all local <br/>
<a id="pl.19.7"></a><var>19.7</var>taxes and license fees except a fee authorized under section 
         <statute_ref>349.16, subdivision 8</statute_ref>.<br/>
<a id="pl.19.8"></a><var>19.8</var>(b) The liability for the tax imposed by this section is incurred when the pull-tabs <br/>
<a id="pl.19.9"></a><var>19.9</var>and tipboards are delivered by the distributor to the customer or to a common or contract <br/>
<a id="pl.19.10"></a><var>19.10</var>carrier for delivery to the customer, or when received by the customer's authorized <br/>
<a id="pl.19.11"></a><var>19.11</var>representative at the distributor's place of business, regardless of the distributor's method <br/>
<a id="pl.19.12"></a><var>19.12</var>of accounting or the terms of the sale.<br/>
<a id="pl.19.13"></a><var>19.13</var>The tax imposed by this subdivision is imposed on all sales of pull-tabs and <br/>
<a id="pl.19.14"></a><var>19.14</var>tipboards, except the following:<br/>
<a id="pl.19.15"></a><var>19.15</var>(1) sales to the governing body of an Indian tribal organization for use on an Indian <br/>
<a id="pl.19.16"></a><var>19.16</var>reservation;<br/>
<a id="pl.19.17"></a><var>19.17</var>(2) sales to distributors licensed under the laws of another state or of a province of <br/>
<a id="pl.19.18"></a><var>19.18</var>Canada, as long as all statutory and regulatory requirements are met in the other state or <br/>
<a id="pl.19.19"></a><var>19.19</var>province;<br/>
<a id="pl.19.20"></a><var>19.20</var>(3) sales of promotional tickets as defined in section 
         <statute_ref>349.12</statute_ref>; and<br/>
<a id="pl.19.21"></a><var>19.21</var>(4) pull-tabs and tipboards sold to an organization that sells pull-tabs and tipboards <br/>
<a id="pl.19.22"></a><var>19.22</var>under the exemption from licensing in section 
         <statute_ref>349.166, subdivision 2</statute_ref>. A distributor shall <br/>
<a id="pl.19.23"></a><var>19.23</var>require an organization conducting exempt gambling to show proof of its exempt status <br/>
<a id="pl.19.24"></a><var>19.24</var>before making a tax-exempt sale of pull-tabs or tipboards to the organization. A distributor <br/>
<a id="pl.19.25"></a><var>19.25</var>shall identify, on all reports submitted to the commissioner, all sales of pull-tabs and <br/>
<a id="pl.19.26"></a><var>19.26</var>tipboards that are exempt from tax under this subdivision.<br/>
<a id="pl.19.27"></a><var>19.27</var>(c) A distributor having a liability of $120,000 $10,000 or more during a fiscal year <br/>
<a id="pl.19.28"></a><var>19.28</var>ending June 30 must remit all liabilities in the subsequent calendar year by electronic <br/>
<a id="pl.19.29"></a><var>19.29</var>means.<br/>
<a id="pl.19.30"></a><var>19.30</var>(d) Any customer who purchases deals of pull-tabs or tipboards from a distributor <br/>
<a id="pl.19.31"></a><var>19.31</var>may file an annual claim for a refund or credit of taxes paid pursuant to this subdivision <br/>
<a id="pl.19.32"></a><var>19.32</var>for unsold pull-tab and tipboard tickets. The claim must be filed with the commissioner on <br/>
<a id="pl.19.33"></a><var>19.33</var>a form prescribed by the commissioner by March 20 of the year following the calendar <br/>
<a id="pl.19.34"></a><var>19.34</var>year for which the refund is claimed. The refund must be filed as part of the customer's <br/>
<a id="pl.19.35"></a><var>19.35</var>February monthly return. The refund or credit is equal to 1.7 percent of the face value <br/>
<a id="pl.19.36"></a><var>19.36</var>of the unsold pull-tab or tipboard tickets, provided that the refund or credit will be 1.75 <br/>
<a id="pl.20.1"></a><var>20.1</var>percent of the face value of the unsold pull-tab or tipboard tickets for claims for a refund <br/>
<a id="pl.20.2"></a><var>20.2</var>or credit of taxes filed on the February 2001 monthly return. The refund claimed will be <br/>
<a id="pl.20.3"></a><var>20.3</var>applied as a credit against tax owing under this chapter on the February monthly return. If <br/>
<a id="pl.20.4"></a><var>20.4</var>the refund claimed exceeds the tax owing on the February monthly return, that amount <br/>
<a id="pl.20.5"></a><var>20.5</var>will be refunded. The amount refunded will bear interest pursuant to section 
         <statute_ref>270C.405</statute_ref> <br/>
<a id="pl.20.6"></a><var>20.6</var>from 90 days after the claim is filed.<br/>
<a id="pl.20.7"></a><var>20.7</var><b>EFFECTIVE DATE.</b>This section is effective for payments due in calendar year <br/>
<a id="pl.20.8"></a><var>20.8</var>2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, <br/>
<a id="pl.20.9"></a><var>20.9</var>2009, and in fiscal years thereafter.<br/>
<br/>
<a id="bill.3.9.0"></a><a id="pl.20.10"></a><var>20.10</var>    Sec. 9. Minnesota Statutes 2008, section 297E.06, is amended by adding a subdivision <br/>
<a id="pl.20.11"></a><var>20.11</var>to read:<br/>
<a id="pl.20.12"></a><var>20.12</var>    Subd. 1a. <b>Required signatures.</b> The gambling manager and the chief executive <br/>
<a id="pl.20.13"></a><var>20.13</var>officer of the organization, or their respective designees, and the person who completed <br/>
<a id="pl.20.14"></a><var>20.14</var>the tax return must sign the tax return. The organization shall inform the commissioner of <br/>
<a id="pl.20.15"></a><var>20.15</var>revenue in writing of the identity of the designees as soon as practicable in the form and <br/>
<a id="pl.20.16"></a><var>20.16</var>manner prescribed by the commissioner.<br/>
<a id="pl.20.17"></a><var>20.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.10.0"></a><a id="pl.20.18"></a><var>20.18</var>    Sec. 10. Minnesota Statutes 2008, section 297E.11, subdivision 1, is amended to read:<br/>
<a id="pl.20.19"></a><var>20.19</var>    Subdivision 1. <b>General rule.</b> Except as otherwise provided in this chapter, the <br/>
<a id="pl.20.20"></a><var>20.20</var>amount of taxes assessable must be assessed within 3-1/2 years after the return is filed, <br/>
<a id="pl.20.21"></a><var>20.21</var>whether or not the return is filed on or after the date prescribed. A return must not be <br/>
<a id="pl.20.22"></a><var>20.22</var>treated as filed until it is in processible form. A return is in processible form if it is filed <br/>
<a id="pl.20.23"></a><var>20.23</var>on a permitted form and contains sufficient data to identify the taxpayer and permit the <br/>
<a id="pl.20.24"></a><var>20.24</var>mathematical verification of the tax liability shown on the return. For purposes of this <br/>
<a id="pl.20.25"></a><var>20.25</var>section, a tax return filed before the last day prescribed by law for filing is considered to <br/>
<a id="pl.20.26"></a><var>20.26</var>be filed on the last day.<br/>
<a id="pl.20.27"></a><var>20.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.11.0"></a><a id="pl.20.28"></a><var>20.28</var>    Sec. 11. Minnesota Statutes 2008, section 297F.09, subdivision 7, is amended to read:<br/>
<a id="pl.20.29"></a><var>20.29</var>    Subd. 7. <b>Electronic payment.</b> A cigarette or tobacco products distributor having a <br/>
<a id="pl.20.30"></a><var>20.30</var>liability of $120,000 $10,000 or more during a fiscal year ending June 30 must remit all <br/>
<a id="pl.20.31"></a><var>20.31</var>liabilities in the subsequent calendar year by electronic means.<br/>
<a id="pl.21.1"></a><var>21.1</var><b>EFFECTIVE DATE.</b>This section is effective for payments due in calendar year <br/>
<a id="pl.21.2"></a><var>21.2</var>2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, <br/>
<a id="pl.21.3"></a><var>21.3</var>2009, and in fiscal years thereafter.<br/>
<br/>
<a id="bill.3.12.0"></a><a id="pl.21.4"></a><var>21.4</var>    Sec. 12. Minnesota Statutes 2008, section 297G.09, subdivision 6, is amended to read:<br/>
<a id="pl.21.5"></a><var>21.5</var>    Subd. 6. <b>Electronic payments.</b> A licensed brewer, importer, or wholesaler having <br/>
<a id="pl.21.6"></a><var>21.6</var>an excise tax liability of $120,000 $10,000 or more during a fiscal year ending June 30 <br/>
<a id="pl.21.7"></a><var>21.7</var>must remit all excise tax liabilities in the subsequent calendar year by electronic means.<br/>
<a id="pl.21.8"></a><var>21.8</var><b>EFFECTIVE DATE.</b>This section is effective for payments due in calendar year <br/>
<a id="pl.21.9"></a><var>21.9</var>2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, <br/>
<a id="pl.21.10"></a><var>21.10</var>2009, and in fiscal years thereafter.<br/>
<br/>
<a id="bill.3.13.0"></a><a id="pl.21.11"></a><var>21.11</var>    Sec. 13. Minnesota Statutes 2008, section 297I.30, is amended by adding a subdivision <br/>
<a id="pl.21.12"></a><var>21.12</var>to read:<br/>
<a id="pl.21.13"></a><var>21.13</var>    Subd. 9. <b>Extensions for filing returns.</b> When, in the commissioner's judgment, <br/>
<a id="pl.21.14"></a><var>21.14</var>good cause exists, the commissioner may extend the time for filing returns for not more <br/>
<a id="pl.21.15"></a><var>21.15</var>than six months.<br/>
<a id="pl.21.16"></a><var>21.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.14.0"></a><a id="pl.21.17"></a><var>21.17</var>    Sec. 14. Minnesota Statutes 2008, section 297I.35, subdivision 2, is amended to read:<br/>
<a id="pl.21.18"></a><var>21.18</var>    Subd. 2. <b>Electronic payments.</b> If the aggregate amount of tax and surcharges <br/>
<a id="pl.21.19"></a><var>21.19</var>due under this chapter during a calendar year is equal to or exceeds $120,000 $10,000, <br/>
<a id="pl.21.20"></a><var>21.20</var>or if the taxpayer is required to make payment of any other tax to the commissioner by <br/>
<a id="pl.21.21"></a><var>21.21</var>electronic means, then all tax and surcharge payments in the subsequent calendar year <br/>
<a id="pl.21.22"></a><var>21.22</var>must be paid by electronic means.<br/>
<a id="pl.21.23"></a><var>21.23</var><b>EFFECTIVE DATE.</b>This section is effective for payments due in calendar year <br/>
<a id="pl.21.24"></a><var>21.24</var>2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, <br/>
<a id="pl.21.25"></a><var>21.25</var>2009, and in fiscal years thereafter.<br/>
<br/>
<a id="bill.3.15.0"></a><a id="pl.21.26"></a><var>21.26</var>    Sec. 15. Minnesota Statutes 2008, section 298.28, subdivision 11, is amended to read:<br/>
<a id="pl.21.27"></a><var>21.27</var>    Subd. 11. <b>Remainder.</b> (a) The proceeds of the tax imposed by section 
         <statute_ref>298.24</statute_ref> <br/>
<a id="pl.21.28"></a><var>21.28</var>which remain after the distributions and payments in subdivisions 2 to 10a, as certified <br/>
<a id="pl.21.29"></a><var>21.29</var>by the commissioner of revenue, and paragraphs (b), (c), and (d), and (e) have been <br/>
<a id="pl.21.30"></a><var>21.30</var>made, together with interest earned on all money distributed under this section prior to <br/>
<a id="pl.21.31"></a><var>21.31</var>distribution, shall be divided between the taconite environmental protection fund created <br/>
<a id="pl.22.1"></a><var>22.1</var>in section 
         <statute_ref>298.223</statute_ref> and the Douglas J. Johnson economic protection trust fund created in <br/>
<a id="pl.22.2"></a><var>22.2</var>section 
         <statute_ref>298.292</statute_ref> as follows: Two-thirds to the taconite environmental protection fund and <br/>
<a id="pl.22.3"></a><var>22.3</var>one-third to the Douglas J. Johnson economic protection trust fund. The proceeds shall be <br/>
<a id="pl.22.4"></a><var>22.4</var>placed in the respective special accounts.<br/>
<a id="pl.22.5"></a><var>22.5</var>(b) There shall be distributed to each city, town, and county the amount that it <br/>
<a id="pl.22.6"></a><var>22.6</var>received under section 
         <statute_ref>294.26</statute_ref> in calendar year 1977; provided, however, that the amount <br/>
<a id="pl.22.7"></a><var>22.7</var>distributed in 1981 to the unorganized territory number 2 of Lake County and the town <br/>
<a id="pl.22.8"></a><var>22.8</var>of Beaver Bay based on the between-terminal trackage of Erie Mining Company will be <br/>
<a id="pl.22.9"></a><var>22.9</var>distributed in 1982 and subsequent years to the unorganized territory number 2 of Lake <br/>
<a id="pl.22.10"></a><var>22.10</var>County and the towns of Beaver Bay and Stony River based on the miles of track of Erie <br/>
<a id="pl.22.11"></a><var>22.11</var>Mining Company in each taxing district.<br/>
<a id="pl.22.12"></a><var>22.12</var>(c) There shall be distributed to the Iron Range Resources and Rehabilitation Board <br/>
<a id="pl.22.13"></a><var>22.13</var>the amounts it received in 1977 under section 
         <statute_ref>298.22</statute_ref>. The amount distributed under <br/>
<a id="pl.22.14"></a><var>22.14</var>this paragraph shall be expended within or for the benefit of the taconite assistance area <br/>
<a id="pl.22.15"></a><var>22.15</var>defined in section 
         <statute_ref>273.1341</statute_ref>.<br/>
<a id="pl.22.16"></a><var>22.16</var>(d) There shall be distributed to each school district 62 percent of the amount that it <br/>
<a id="pl.22.17"></a><var>22.17</var>received under section 
         <statute_ref>294.26</statute_ref> in calendar year 1977. <br/>
<a id="pl.22.18"></a><var>22.18</var>(e) In 2003 only, $100,000 must be distributed to a township located in a taconite <br/>
<a id="pl.22.19"></a><var>22.19</var>tax relief area as defined in section 
<statute_ref>273.134, paragraph (a)</statute_ref>, that received $119,259 of <br/>
<a id="pl.22.20"></a><var>22.20</var>homestead and agricultural credit aid and $182,014 in local government aid in 2001.<br/>
<a id="pl.22.21"></a><var>22.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.16.0"></a><a id="pl.22.22"></a><var>22.22</var>    Sec. 16. Minnesota Statutes 2008, section 473.843, subdivision 3, is amended to read:<br/>
<a id="pl.22.23"></a><var>22.23</var>    Subd. 3. <b>Payment of fee.</b> On or before the 20th day of each month each operator <br/>
<a id="pl.22.24"></a><var>22.24</var>shall pay the fee due under this section for the previous month, using a form provided <br/>
<a id="pl.22.25"></a><var>22.25</var>by the commissioner of revenue.<br/>
<a id="pl.22.26"></a><var>22.26</var>An operator having a fee of $120,000 $10,000 or more during a fiscal year ending <br/>
<a id="pl.22.27"></a><var>22.27</var>June 30 must pay all fees in the subsequent calendar year by electronic means.<br/>
<a id="pl.22.28"></a><var>22.28</var><b>EFFECTIVE DATE.</b>This section is effective for payments due in calendar year <br/>
<a id="pl.22.29"></a><var>22.29</var>2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, <br/>
<a id="pl.22.30"></a><var>22.30</var>2009, and in fiscal years thereafter.<br/>
<br/>
<a id="bill.3.17.0"></a><a id="pl.22.31"></a><var>22.31</var>    Sec. 17. <b> REPEALER.</b><br/>
<a id="pl.22.32"></a><var>22.32</var>Minnesota Statutes 2008, sections 287.26; 287.27, subdivision 1; and 298.28, <br/>
<a id="pl.22.33"></a><var>22.33</var>subdivisions 11a and 13, are repealed.<br/>
<a id="pl.23.1"></a><var>23.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.23.4"></a><var>23.4</var>    Section 1. Minnesota Statutes 2008, section 273.11, subdivision 23, is amended to read:<br/>
<a id="pl.23.5"></a><var>23.5</var>    Subd. 23. <b>First tier valuation limit; agricultural homestead property.</b> (a) <br/>
<a id="pl.23.6"></a><var>23.6</var>Beginning with assessment year 2006, The commissioner of revenue shall annually certify <br/>
<a id="pl.23.7"></a><var>23.7</var>the first tier limit for agricultural homestead property as. For assessment year 2010, the <br/>
<a id="pl.23.8"></a><var>23.8</var>limit is $1,140,000. Beginning with assessment year 2011, the limit is the product of (i) <br/>
<a id="pl.23.9"></a><var>23.9</var>$600,000 the first tier limit for the preceding assessment year, and (ii) the ratio of the <br/>
<a id="pl.23.10"></a><var>23.10</var>statewide average taxable market value of agricultural property per acre of deeded farm <br/>
<a id="pl.23.11"></a><var>23.11</var>land in the preceding assessment year to the statewide average taxable market value of <br/>
<a id="pl.23.12"></a><var>23.12</var>agricultural property per acre of deeded farm land for the second preceding assessment <br/>
<a id="pl.23.13"></a><var>23.13</var>year 2004. The limit shall be rounded to the nearest $10,000.<br/>
<a id="pl.23.14"></a><var>23.14</var>(b) For the purposes of this subdivision, "agricultural property" means all class <br/>
<a id="pl.23.15"></a><var>23.15</var>2 2a property under section 
         <statute_ref>273.13</statute_ref>, subdivision 23, except for (1) timberland, (2) a <br/>
<a id="pl.23.16"></a><var>23.16</var>landing area or public access area of a privately owned public use airport, and (3) property <br/>
<a id="pl.23.17"></a><var>23.17</var>consisting of the house, garage, and immediately surrounding one acre of land of an <br/>
<a id="pl.23.18"></a><var>23.18</var>agricultural homestead.<br/>
<a id="pl.23.19"></a><var>23.19</var>(c) The commissioner shall certify the limit by January 2 of each assessment year, <br/>
<a id="pl.23.20"></a><var>23.20</var>except that for assessment year 2006 the commissioner shall certify the limit by June <br/>
<a id="pl.23.21"></a><var>23.21</var>1, 2006.<br/>
<a id="pl.23.22"></a><var>23.22</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2011 and <br/>
<a id="pl.23.23"></a><var>23.23</var>thereafter.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.23.24"></a><var>23.24</var>    Sec. 2. Minnesota Statutes 2008, section 273.111, subdivision 4, is amended to read:<br/>
<a id="pl.23.25"></a><var>23.25</var>    Subd. 4. <b>Determination of value.</b> (a) The value of any real estate described <br/>
<a id="pl.23.26"></a><var>23.26</var>in subdivision 3 shall upon timely application by the owner, in the manner provided <br/>
<a id="pl.23.27"></a><var>23.27</var>in subdivision 8, be determined solely with reference to its appropriate agricultural <br/>
<a id="pl.23.28"></a><var>23.28</var>classification and value notwithstanding sections 
         <statute_ref>272.03, subdivision 8</statute_ref>, and 
         <statute_ref>273.11</statute_ref>. <br/>
<a id="pl.23.29"></a><var>23.29</var>Furthermore, the assessor shall not consider any added values resulting from <br/>
<a id="pl.23.30"></a><var>23.30</var>nonagricultural factors. In order to account for the presence of nonagricultural influences <br/>
<a id="pl.23.31"></a><var>23.31</var>that may affect the value of agricultural land, the commissioner of revenue shall develop a <br/>
<a id="pl.23.32"></a><var>23.32</var>fair and uniform method of determining agricultural values for each county in the state <br/>
<a id="pl.23.33"></a><var>23.33</var>that are consistent with this subdivision. The commissioner shall annually assign the <br/>
<a id="pl.24.1"></a><var>24.1</var>resulting values to each county, and these values shall be used as the basis for determining <br/>
<a id="pl.24.2"></a><var>24.2</var>the agricultural value for all properties in the county qualifying for tax deferment under <br/>
<a id="pl.24.3"></a><var>24.3</var>this section.<br/>
<a id="pl.24.4"></a><var>24.4</var>    (b) In the case of property qualifying for tax deferment only under subdivision 3a, <br/>
<a id="pl.24.5"></a><var>24.5</var>the value shall be based on the value in effect for assessment year 2008, multiplied by <br/>
<a id="pl.24.6"></a><var>24.6</var>the ratio of the total taxable market value of all property in the county for the current <br/>
<a id="pl.24.7"></a><var>24.7</var>assessment year divided by the total taxable market value of all property in the county for <br/>
<a id="pl.24.8"></a><var>24.8</var>assessment year 2008 assessor shall not consider the presence of commercial, industrial, <br/>
<a id="pl.24.9"></a><var>24.9</var>residential, or seasonal recreational land use influences in determining the value for ad <br/>
<a id="pl.24.10"></a><var>24.10</var>valorem tax purposes; provided that in no case shall the value exceed the value prescribed <br/>
<a id="pl.24.11"></a><var>24.11</var>by the commissioner of revenue for class 2a tillable property in that county.<br/>
<a id="pl.24.12"></a><var>24.12</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2009 and <br/>
<a id="pl.24.13"></a><var>24.13</var>thereafter.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.24.14"></a><var>24.14</var>    Sec. 3. Minnesota Statutes 2008, section 273.1115, subdivision 2, is amended to read:<br/>
<a id="pl.24.15"></a><var>24.15</var>    Subd. 2. <b>Requirement.</b> Real estate is entitled to valuation under this section only if <br/>
<a id="pl.24.16"></a><var>24.16</var>all of the following requirements are met:<br/>
<a id="pl.24.17"></a><var>24.17</var>    (1) the property is classified as class 1a, 1b, 2a, or 2b property under section 
         <statute_ref>273.13</statute_ref>, <br/>
<a id="pl.24.18"></a><var>24.18</var>subdivisions 22 and 23, or the property is classified as class 2e under section 273.13, <br/>
<a id="pl.24.19"></a><var>24.19</var>subdivision 23, and immediately before being classified as class 2e was classified as <br/>
<a id="pl.24.20"></a><var>24.20</var>class 1a or 1b;<br/>
<a id="pl.24.21"></a><var>24.21</var>    (2) the property is at least ten contiguous acres, when the application is filed under <br/>
<a id="pl.24.22"></a><var>24.22</var>subdivision 3;<br/>
<a id="pl.24.23"></a><var>24.23</var>    (3) the owner has filed a completed application for deferment as specified in <br/>
<a id="pl.24.24"></a><var>24.24</var>subdivision 3 with the county assessor in the county in which the property is located;<br/>
<a id="pl.24.25"></a><var>24.25</var>    (4) there are no delinquent taxes on the property; and<br/>
<a id="pl.24.26"></a><var>24.26</var>    (5) a covenant on the land restricts its use as provided in subdivision 3, clause (4).<br/>
<a id="pl.24.27"></a><var>24.27</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.24.28"></a><var>24.28</var>thereafter.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.24.29"></a><var>24.29</var>    Sec. 4. Minnesota Statutes 2008, section 273.1231, subdivision 8, is amended to read:<br/>
<a id="pl.24.30"></a><var>24.30</var>    Subd. 8. <b>Utility property.</b> "Utility property" means property appraised and <br/>
<a id="pl.24.31"></a><var>24.31</var>classified for tax purposes by order of the commissioner of revenue under sections 
         <statute_ref>273.33</statute_ref> <br/>
<a id="pl.24.32"></a><var>24.32</var>to 
         <statute_ref>273.3711</statute_ref>.<br/>
<a id="pl.24.33"></a><var>24.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.25.1"></a><var>25.1</var>    Sec. 5. Minnesota Statutes 2008, section 273.124, subdivision 3, is amended to read:<br/>
<a id="pl.25.2"></a><var>25.2</var>    Subd. 3. <b>Cooperatives and charitable corporations; homestead and other </b><br/>
<a id="pl.25.3"></a><var>25.3</var><b>property.</b> (a) When property is owned by a corporation or association organized under <br/>
<a id="pl.25.4"></a><var>25.4</var>chapter 308A or 308B, and each person who owns a share or shares in the corporation or <br/>
<a id="pl.25.5"></a><var>25.5</var>association is entitled to occupy a building on the property, or a unit within a building <br/>
<a id="pl.25.6"></a><var>25.6</var>on the property, the corporation or association may claim homestead treatment for each <br/>
<a id="pl.25.7"></a><var>25.7</var>dwelling, or for each unit in the case of a building containing several dwelling units, or for <br/>
<a id="pl.25.8"></a><var>25.8</var>the part of the value of the building occupied by a shareholder. Each building or unit must <br/>
<a id="pl.25.9"></a><var>25.9</var>be designated by legal description or number. The net tax capacity of each building or <br/>
<a id="pl.25.10"></a><var>25.10</var>unit that qualifies for assessment as a homestead under this subdivision must include not <br/>
<a id="pl.25.11"></a><var>25.11</var>more than one-half acre of land, if platted, nor more than 80 acres if unplatted. The net <br/>
<a id="pl.25.12"></a><var>25.12</var>tax capacity of the property is the sum of the net tax capacities of each of the respective <br/>
<a id="pl.25.13"></a><var>25.13</var>buildings or units comprising the property, including the net tax capacity of each unit's <br/>
<a id="pl.25.14"></a><var>25.14</var>or building's proportionate share of the land and any common buildings. To qualify for <br/>
<a id="pl.25.15"></a><var>25.15</var>the treatment provided by this subdivision, the corporation or association must be wholly <br/>
<a id="pl.25.16"></a><var>25.16</var>owned by persons having a right to occupy a building or unit owned by the corporation <br/>
<a id="pl.25.17"></a><var>25.17</var>or association. A charitable corporation organized under the laws of Minnesota and not <br/>
<a id="pl.25.18"></a><var>25.18</var>otherwise exempt thereunder with no outstanding stock qualifies for homestead treatment <br/>
<a id="pl.25.19"></a><var>25.19</var>with respect to member residents of the dwelling units who have purchased and hold <br/>
<a id="pl.25.20"></a><var>25.20</var>residential participation warrants entitling them to occupy the units.<br/>
<a id="pl.25.21"></a><var>25.21</var>(b) To the extent provided in paragraph (a), a cooperative or corporation organized <br/>
<a id="pl.25.22"></a><var>25.22</var>under chapter 308A or 308B may obtain separate assessment and valuation, and separate <br/>
<a id="pl.25.23"></a><var>25.23</var>property tax statements for each residential homestead, residential nonhomestead, or for <br/>
<a id="pl.25.24"></a><var>25.24</var>each seasonal residential recreational building or unit not used for commercial purposes. <br/>
<a id="pl.25.25"></a><var>25.25</var>The appropriate class rates under section 
         <statute_ref>273.13</statute_ref> shall be applicable as if each building or <br/>
<a id="pl.25.26"></a><var>25.26</var>unit were a separate tax parcel; provided, however, that the tax parcel which exists at the <br/>
<a id="pl.25.27"></a><var>25.27</var>time the cooperative or corporation makes application under this subdivision shall be a <br/>
<a id="pl.25.28"></a><var>25.28</var>single parcel for purposes of property taxes or the enforcement and collection thereof, <br/>
<a id="pl.25.29"></a><var>25.29</var>other than as provided in paragraph (a) or this paragraph.<br/>
<a id="pl.25.30"></a><var>25.30</var>(c) A member of a corporation or association may initially obtain the separate <br/>
<a id="pl.25.31"></a><var>25.31</var>assessment and valuation and separate property tax statements, as provided in paragraph <br/>
<a id="pl.25.32"></a><var>25.32</var>(b), by applying to the assessor by June 30 of the assessment year.<br/>
<a id="pl.25.33"></a><var>25.33</var>(d) When a building, or dwelling units within a building, no longer qualify under <br/>
<a id="pl.25.34"></a><var>25.34</var>paragraph (a) or (b), the current owner must notify the assessor within 30 days. Failure to <br/>
<a id="pl.25.35"></a><var>25.35</var>notify the assessor within 30 days shall result in the loss of benefits under paragraph (a) or <br/>
<a id="pl.25.36"></a><var>25.36</var>(b) for taxes payable in the year that the failure is discovered. For these purposes, "benefits <br/>
<a id="pl.26.1"></a><var>26.1</var>under paragraph (a) or (b)" means the difference in the net tax capacity of the building or <br/>
<a id="pl.26.2"></a><var>26.2</var>units which no longer qualify as computed under paragraph (a) or (b) and as computed <br/>
<a id="pl.26.3"></a><var>26.3</var>under the otherwise applicable law, times the local tax rate applicable to the building for <br/>
<a id="pl.26.4"></a><var>26.4</var>that taxes payable year. Upon discovery of a failure to notify, the assessor shall inform the <br/>
<a id="pl.26.5"></a><var>26.5</var>auditor of the difference in net tax capacity for the building or buildings in which units no <br/>
<a id="pl.26.6"></a><var>26.6</var>longer qualify, and the auditor shall calculate the benefits under paragraph (a) or (b). Such <br/>
<a id="pl.26.7"></a><var>26.7</var>amount, plus a penalty equal to 100 percent of that amount, shall then be demanded of the <br/>
<a id="pl.26.8"></a><var>26.8</var>building's owner. The property owner may appeal the county's determination by serving <br/>
<a id="pl.26.9"></a><var>26.9</var>copies of a petition for review with county officials as provided in section 
         <statute_ref>278.01</statute_ref> and <br/>
<a id="pl.26.10"></a><var>26.10</var>filing a proof of service as provided in section 
         <statute_ref>278.01</statute_ref> with the Minnesota Tax Court within <br/>
<a id="pl.26.11"></a><var>26.11</var>60 days of the date of the notice from the county. The appeal shall be governed by the Tax <br/>
<a id="pl.26.12"></a><var>26.12</var>Court procedures provided in chapter 271, for cases relating to the tax laws as defined in <br/>
<a id="pl.26.13"></a><var>26.13</var>section 
         <statute_ref>271.01, subdivision 5</statute_ref>; disregarding sections 
         <statute_ref>273.125, subdivision 5</statute_ref>, and 
         <statute_ref>278.03</statute_ref>, <br/>
<a id="pl.26.14"></a><var>26.14</var>but including section 
         <statute_ref>278.05, subdivision 2</statute_ref>. If the amount of the benefits under paragraph <br/>
<a id="pl.26.15"></a><var>26.15</var>(a) or (b) and penalty are not paid within 60 days, and if no appeal has been filed, the <br/>
<a id="pl.26.16"></a><var>26.16</var>county auditor shall certify the amount of the benefit and penalty to the succeeding year's <br/>
<a id="pl.26.17"></a><var>26.17</var>tax list to be collected as part of the property taxes on the affected property.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.26.18"></a><var>26.18</var>    Sec. 6. Minnesota Statutes 2008, section 273.124, subdivision 3a, is amended to read:<br/>
<a id="pl.26.19"></a><var>26.19</var>    Subd. 3a. <b>Manufactured home park cooperative.</b> When a manufactured home <br/>
<a id="pl.26.20"></a><var>26.20</var>park is owned by a corporation or association organized under chapter 308A or 308B, <br/>
<a id="pl.26.21"></a><var>26.21</var>and each person who owns a share or shares in the corporation or association is entitled <br/>
<a id="pl.26.22"></a><var>26.22</var>to occupy a lot within the park, the corporation or association may claim homestead <br/>
<a id="pl.26.23"></a><var>26.23</var>treatment for each lot occupied by a shareholder. Each lot must be designated by legal <br/>
<a id="pl.26.24"></a><var>26.24</var>description or number, and each lot is limited to not more than one-half acre of land for <br/>
<a id="pl.26.25"></a><var>26.25</var>each homestead. The manufactured home park shall be valued and assessed as if it were <br/>
<a id="pl.26.26"></a><var>26.26</var>homestead property within class 1 if all of the following criteria are met:<br/>
<a id="pl.26.27"></a><var>26.27</var>(1) the occupant is using the property as a permanent residence;<br/>
<a id="pl.26.28"></a><var>26.28</var>(2) the occupant or the cooperative association is paying the ad valorem property <br/>
<a id="pl.26.29"></a><var>26.29</var>taxes and any special assessments levied against the land and structure either directly, or <br/>
<a id="pl.26.30"></a><var>26.30</var>indirectly through dues to the corporation; and<br/>
<a id="pl.26.31"></a><var>26.31</var>(3) the corporation or association organized under chapter 308A or 308B is wholly <br/>
<a id="pl.26.32"></a><var>26.32</var>owned by persons having a right to occupy a lot owned by the corporation or association.<br/>
<a id="pl.26.33"></a><var>26.33</var>A charitable corporation, organized under the laws of Minnesota with no outstanding <br/>
<a id="pl.26.34"></a><var>26.34</var>stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt <br/>
<a id="pl.26.35"></a><var>26.35</var>status, qualifies for homestead treatment with respect to member residents of the <br/>
<a id="pl.27.1"></a><var>27.1</var>manufactured home park who hold residential participation warrants entitling them to <br/>
<a id="pl.27.2"></a><var>27.2</var>occupy a lot in the manufactured home park.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.27.3"></a><var>27.3</var>    Sec. 7. Minnesota Statutes 2008, section 273.124, subdivision 13, is amended to read:<br/>
<a id="pl.27.4"></a><var>27.4</var>    Subd. 13.  <b>Homestead application.</b> (a) A person who meets the homestead <br/>
<a id="pl.27.5"></a><var>27.5</var>requirements under subdivision 1 must file a homestead application with the county <br/>
<a id="pl.27.6"></a><var>27.6</var>assessor to initially obtain homestead classification. <br/>
<a id="pl.27.7"></a><var>27.7</var>    (b) The format and contents of a uniform homestead application shall be prescribed <br/>
<a id="pl.27.8"></a><var>27.8</var>by the commissioner of revenue. The application must clearly inform the taxpayer that <br/>
<a id="pl.27.9"></a><var>27.9</var>this application must be signed by all owners who occupy the property or by the qualifying <br/>
<a id="pl.27.10"></a><var>27.10</var>relative and returned to the county assessor in order for the property to receive homestead <br/>
<a id="pl.27.11"></a><var>27.11</var>treatment. <br/>
<a id="pl.27.12"></a><var>27.12</var>    (c) Every property owner applying for homestead classification must furnish to the <br/>
<a id="pl.27.13"></a><var>27.13</var>county assessor the Social Security number of each occupant who is listed as an owner <br/>
<a id="pl.27.14"></a><var>27.14</var>of the property on the deed of record, the name and address of each owner who does not <br/>
<a id="pl.27.15"></a><var>27.15</var>occupy the property, and the name and Social Security number of each owner's spouse who <br/>
<a id="pl.27.16"></a><var>27.16</var>occupies the property. The application must be signed by each owner who occupies the <br/>
<a id="pl.27.17"></a><var>27.17</var>property and by each owner's spouse who occupies the property, or, in the case of property <br/>
<a id="pl.27.18"></a><var>27.18</var>that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative. <br/>
<a id="pl.27.19"></a><var>27.19</var>    If a property owner occupies a homestead, the property owner's spouse may not <br/>
<a id="pl.27.20"></a><var>27.20</var>claim another property as a homestead unless the property owner and the property owner's <br/>
<a id="pl.27.21"></a><var>27.21</var>spouse file with the assessor an affidavit or other proof required by the assessor stating that <br/>
<a id="pl.27.22"></a><var>27.22</var>the property qualifies as a homestead under subdivision 1, paragraph (e). <br/>
<a id="pl.27.23"></a><var>27.23</var>    Owners or spouses occupying residences owned by their spouses and previously <br/>
<a id="pl.27.24"></a><var>27.24</var>occupied with the other spouse, either of whom fail to include the other spouse's name <br/>
<a id="pl.27.25"></a><var>27.25</var>and Social Security number on the homestead application or provide the affidavits or <br/>
<a id="pl.27.26"></a><var>27.26</var>other proof requested, will be deemed to have elected to receive only partial homestead <br/>
<a id="pl.27.27"></a><var>27.27</var>treatment of their residence. The remainder of the residence will be classified as <br/>
<a id="pl.27.28"></a><var>27.28</var>nonhomestead residential. When an owner or spouse's name and Social Security number <br/>
<a id="pl.27.29"></a><var>27.29</var>appear on homestead applications for two separate residences and only one application is <br/>
<a id="pl.27.30"></a><var>27.30</var>signed, the owner or spouse will be deemed to have elected to homestead the residence for <br/>
<a id="pl.27.31"></a><var>27.31</var>which the application was signed. <br/>
<a id="pl.27.32"></a><var>27.32</var>    The Social Security numbers, state or federal tax returns or tax return information, <br/>
<a id="pl.27.33"></a><var>27.33</var>including the federal income tax schedule F required by this section, or affidavits or other <br/>
<a id="pl.27.34"></a><var>27.34</var>proofs of the property owners and spouses submitted under this or another section to <br/>
<a id="pl.27.35"></a><var>27.35</var>support a claim for a property tax homestead classification are private data on individuals <br/>
<a id="pl.28.1"></a><var>28.1</var>as defined by section 
         <statute_ref>13.02, subdivision 12</statute_ref>, but, notwithstanding that section, the private <br/>
<a id="pl.28.2"></a><var>28.2</var>data may be disclosed to the commissioner of revenue, or, for purposes of proceeding <br/>
<a id="pl.28.3"></a><var>28.3</var>under the Revenue Recapture Act to recover personal property taxes owing, to the county <br/>
<a id="pl.28.4"></a><var>28.4</var>treasurer. <br/>
<a id="pl.28.5"></a><var>28.5</var>    (d) If residential real estate is occupied and used for purposes of a homestead by <br/>
<a id="pl.28.6"></a><var>28.6</var>a relative of the owner and qualifies for a homestead under subdivision 1, paragraph <br/>
<a id="pl.28.7"></a><var>28.7</var>(c) or (d), in order for the property to receive homestead status, a homestead application <br/>
<a id="pl.28.8"></a><var>28.8</var>must be filed with the assessor. The application must be signed by each relative of an <br/>
<a id="pl.28.9"></a><var>28.9</var>owner who occupies the property and by each relative's spouse who also occupies the <br/>
<a id="pl.28.10"></a><var>28.10</var>property. The Social Security number of each relative and spouse of a relative occupying <br/>
<a id="pl.28.11"></a><var>28.11</var>the property shall be required on the homestead application filed under this subdivision. <br/>
<a id="pl.28.12"></a><var>28.12</var>If a different relative of the owner subsequently occupies the property, the owner of the <br/>
<a id="pl.28.13"></a><var>28.13</var>property must notify the assessor within 30 days of the change in occupancy. The Social <br/>
<a id="pl.28.14"></a><var>28.14</var>Security number of a relative or relative's spouse occupying the property is private data <br/>
<a id="pl.28.15"></a><var>28.15</var>on individuals as defined by section 
         <statute_ref>13.02, subdivision 12</statute_ref>, but may be disclosed to the <br/>
<a id="pl.28.16"></a><var>28.16</var>commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture <br/>
<a id="pl.28.17"></a><var>28.17</var>Act to recover personal property taxes owing, to the county treasurer.<br/>
<a id="pl.28.18"></a><var>28.18</var>    (e) The homestead application shall also notify the property owners that the <br/>
<a id="pl.28.19"></a><var>28.19</var>application filed under this section will not be mailed annually and that if the property <br/>
<a id="pl.28.20"></a><var>28.20</var>is granted homestead status for any assessment year, that same property shall remain <br/>
<a id="pl.28.21"></a><var>28.21</var>classified as homestead until the property is sold or transferred to another person, or <br/>
<a id="pl.28.22"></a><var>28.22</var>the owners, the spouse of the owner, or the relatives no longer use the property as their <br/>
<a id="pl.28.23"></a><var>28.23</var>homestead. Upon the sale or transfer of the homestead property, a certificate of value must <br/>
<a id="pl.28.24"></a><var>28.24</var>be timely filed with the county auditor as provided under section 
         <statute_ref>272.115</statute_ref>. Failure to <br/>
<a id="pl.28.25"></a><var>28.25</var>notify the assessor within 30 days that the property has been sold, transferred, or that the <br/>
<a id="pl.28.26"></a><var>28.26</var>owner, the spouse of the owner, or the relative is no longer occupying the property as a <br/>
<a id="pl.28.27"></a><var>28.27</var>homestead, shall result in the penalty provided under this subdivision and the property <br/>
<a id="pl.28.28"></a><var>28.28</var>will lose its current homestead status.<br/>
<a id="pl.28.29"></a><var>28.29</var>    (f) If the homestead application is not returned within 30 days, the county will send a <br/>
<a id="pl.28.30"></a><var>28.30</var>second application to the present owners of record. The notice of proposed property taxes <br/>
<a id="pl.28.31"></a><var>28.31</var>prepared under section 
         <statute_ref>275.065, subdivision 3</statute_ref>, shall reflect the property's classification. If <br/>
<a id="pl.28.32"></a><var>28.32</var>a homestead application has not been filed with the county by December 15, the assessor <br/>
<a id="pl.28.33"></a><var>28.33</var>shall classify the property as nonhomestead for the current assessment year for taxes <br/>
<a id="pl.28.34"></a><var>28.34</var>payable in the following year, provided that the owner may be entitled to receive the <br/>
<a id="pl.28.35"></a><var>28.35</var>homestead classification by proper application under section 
         <statute_ref>375.192</statute_ref>.<br/>
<a id="pl.29.1"></a><var>29.1</var>    (g) At the request of the commissioner, each county must give the commissioner a <br/>
<a id="pl.29.2"></a><var>29.2</var>list that includes the name and Social Security number of each occupant of homestead <br/>
<a id="pl.29.3"></a><var>29.3</var>property who is the property owner, property owner's spouse, qualifying relative of a <br/>
<a id="pl.29.4"></a><var>29.4</var>property owner, or a spouse of a qualifying relative. The commissioner shall use the <br/>
<a id="pl.29.5"></a><var>29.5</var>information provided on the lists as appropriate under the law, including for the detection <br/>
<a id="pl.29.6"></a><var>29.6</var>of improper claims by owners, or relatives of owners, under chapter 290A.<br/>
<a id="pl.29.7"></a><var>29.7</var>    (h) If the commissioner finds that a property owner may be claiming a fraudulent <br/>
<a id="pl.29.8"></a><var>29.8</var>homestead, the commissioner shall notify the appropriate counties. Within 90 days of <br/>
<a id="pl.29.9"></a><var>29.9</var>the notification, the county assessor shall investigate to determine if the homestead <br/>
<a id="pl.29.10"></a><var>29.10</var>classification was properly claimed. If the property owner does not qualify, the county <br/>
<a id="pl.29.11"></a><var>29.11</var>assessor shall notify the county auditor who will determine the amount of homestead <br/>
<a id="pl.29.12"></a><var>29.12</var>benefits that had been improperly allowed. For the purpose of this section, "homestead <br/>
<a id="pl.29.13"></a><var>29.13</var>benefits" means the tax reduction resulting from the classification as a homestead under <br/>
<a id="pl.29.14"></a><var>29.14</var>section 
         <statute_ref>273.13</statute_ref>, the taconite homestead credit under section 
         <statute_ref>273.135</statute_ref>, the residential <br/>
<a id="pl.29.15"></a><var>29.15</var>homestead and agricultural homestead credits under section 
         <statute_ref>273.1384</statute_ref>, and the <br/>
<a id="pl.29.16"></a><var>29.16</var>supplemental homestead credit under section 
         <statute_ref>273.1391</statute_ref>.<br/>
<a id="pl.29.17"></a><var>29.17</var>    The county auditor shall send a notice to the person who owned the affected property <br/>
<a id="pl.29.18"></a><var>29.18</var>at the time the homestead application related to the improper homestead was filed, <br/>
<a id="pl.29.19"></a><var>29.19</var>demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent <br/>
<a id="pl.29.20"></a><var>29.20</var>of the homestead benefits. The person notified may appeal the county's determination <br/>
<a id="pl.29.21"></a><var>29.21</var>by serving copies of a petition for review with county officials as provided in section <br/>
<statute_ref><a id="pl.29.22"></a><var>29.22</var>278.01
         </statute_ref> and filing proof of service as provided in section 
         <statute_ref>278.01</statute_ref> with the Minnesota Tax <br/>
<a id="pl.29.23"></a><var>29.23</var>Court within 60 days of the date of the notice from the county. Procedurally, the appeal <br/>
<a id="pl.29.24"></a><var>29.24</var>is governed by the provisions in chapter 271 which apply to the appeal of a property tax <br/>
<a id="pl.29.25"></a><var>29.25</var>assessment or levy, but without requiring any prepayment of the amount in controversy. If <br/>
<a id="pl.29.26"></a><var>29.26</var>the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal <br/>
<a id="pl.29.27"></a><var>29.27</var>has been filed, the county auditor shall certify the amount of taxes and penalty to the county <br/>
<a id="pl.29.28"></a><var>29.28</var>treasurer. The county treasurer will add interest to the unpaid homestead benefits and <br/>
<a id="pl.29.29"></a><var>29.29</var>penalty amounts at the rate provided in section 
         <statute_ref>279.03</statute_ref> for real property taxes becoming <br/>
<a id="pl.29.30"></a><var>29.30</var>delinquent in the calendar year during which the amount remains unpaid. Interest may be <br/>
<a id="pl.29.31"></a><var>29.31</var>assessed for the period beginning 60 days after demand for payment was made.<br/>
<a id="pl.29.32"></a><var>29.32</var>    If the person notified is the current owner of the property, the treasurer may add the <br/>
<a id="pl.29.33"></a><var>29.33</var>total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes <br/>
<a id="pl.29.34"></a><var>29.34</var>otherwise payable on the property by including the amounts on the property tax statements <br/>
<a id="pl.29.35"></a><var>29.35</var>under section 
         <statute_ref>276.04, subdivision 3</statute_ref>. The amounts added under this paragraph to the ad <br/>
<a id="pl.29.36"></a><var>29.36</var>valorem taxes shall include interest accrued through December 31 of the year preceding <br/>
<a id="pl.30.1"></a><var>30.1</var>the taxes payable year for which the amounts are first added. These amounts, when added <br/>
<a id="pl.30.2"></a><var>30.2</var>to the property tax statement, become subject to all the laws for the enforcement of real or <br/>
<a id="pl.30.3"></a><var>30.3</var>personal property taxes for that year, and for any subsequent year.<br/>
<a id="pl.30.4"></a><var>30.4</var>    If the person notified is not the current owner of the property, the treasurer may <br/>
<a id="pl.30.5"></a><var>30.5</var>collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of <br/>
<a id="pl.30.6"></a><var>30.6</var>the powers granted in sections 
         <statute_ref>277.20</statute_ref> and 
         <statute_ref>277.21</statute_ref> without exclusion, to enforce payment <br/>
<a id="pl.30.7"></a><var>30.7</var>of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent <br/>
<a id="pl.30.8"></a><var>30.8</var>tax obligations of the person who owned the property at the time the application related <br/>
<a id="pl.30.9"></a><var>30.9</var>to the improperly allowed homestead was filed. The treasurer may relieve a prior owner <br/>
<a id="pl.30.10"></a><var>30.10</var>of personal liability for the homestead benefits, penalty, interest, and costs, and instead <br/>
<a id="pl.30.11"></a><var>30.11</var>extend those amounts on the tax lists against the property as provided in this paragraph <br/>
<a id="pl.30.12"></a><var>30.12</var>to the extent that the current owner agrees in writing. On all demands, billings, property <br/>
<a id="pl.30.13"></a><var>30.13</var>tax statements, and related correspondence, the county must list and state separately the <br/>
<a id="pl.30.14"></a><var>30.14</var>amounts of homestead benefits, penalty, interest and costs being demanded, billed or <br/>
<a id="pl.30.15"></a><var>30.15</var>assessed.<br/>
<a id="pl.30.16"></a><var>30.16</var>    (i) Any amount of homestead benefits recovered by the county from the property <br/>
<a id="pl.30.17"></a><var>30.17</var>owner shall be distributed to the county, city or town, and school district where the <br/>
<a id="pl.30.18"></a><var>30.18</var>property is located in the same proportion that each taxing district's levy was to the total <br/>
<a id="pl.30.19"></a><var>30.19</var>of the three taxing districts' levy for the current year. Any amount recovered attributable <br/>
<a id="pl.30.20"></a><var>30.20</var>to taconite homestead credit shall be transmitted to the St. Louis County auditor to be <br/>
<a id="pl.30.21"></a><var>30.21</var>deposited in the taconite property tax relief account. Any amount recovered that is <br/>
<a id="pl.30.22"></a><var>30.22</var>attributable to supplemental homestead credit is to be transmitted to the commissioner of <br/>
<a id="pl.30.23"></a><var>30.23</var>revenue for deposit in the general fund of the state treasury. The total amount of penalty <br/>
<a id="pl.30.24"></a><var>30.24</var>collected must be deposited in the county general fund.<br/>
<a id="pl.30.25"></a><var>30.25</var>    (j) If a property owner has applied for more than one homestead and the county <br/>
<a id="pl.30.26"></a><var>30.26</var>assessors cannot determine which property should be classified as homestead, the county <br/>
<a id="pl.30.27"></a><var>30.27</var>assessors will refer the information to the commissioner. The commissioner shall make <br/>
<a id="pl.30.28"></a><var>30.28</var>the determination and notify the counties within 60 days.<br/>
<a id="pl.30.29"></a><var>30.29</var>    (k) In addition to lists of homestead properties, the commissioner may ask the <br/>
<a id="pl.30.30"></a><var>30.30</var>counties to furnish lists of all properties and the record owners. The Social Security <br/>
<a id="pl.30.31"></a><var>30.31</var>numbers and federal identification numbers that are maintained by a county or city <br/>
<a id="pl.30.32"></a><var>30.32</var>assessor for property tax administration purposes, and that may appear on the lists retain <br/>
<a id="pl.30.33"></a><var>30.33</var>their classification as private or nonpublic data; but may be viewed, accessed, and used by <br/>
<a id="pl.30.34"></a><var>30.34</var>the county auditor or treasurer of the same county for the limited purpose of assisting the <br/>
<a id="pl.30.35"></a><var>30.35</var>commissioner in the preparation of microdata samples under section 
         <statute_ref>270C.12</statute_ref>. <br/>
<a id="pl.31.1"></a><var>31.1</var>    (l) On or before April 30 each year beginning in 2007, each county must provide the <br/>
<a id="pl.31.2"></a><var>31.2</var>commissioner with the following data for each parcel of homestead property by electronic <br/>
<a id="pl.31.3"></a><var>31.3</var>means as defined in section 
         <statute_ref>289A.02, subdivision 8</statute_ref>: <br/>
<a id="pl.31.4"></a><var>31.4</var>    (i) the property identification number assigned to the parcel for purposes of taxes <br/>
<a id="pl.31.5"></a><var>31.5</var>payable in the current year; <br/>
<a id="pl.31.6"></a><var>31.6</var>    (ii) the name and Social Security number of each occupant of homestead property <br/>
<a id="pl.31.7"></a><var>31.7</var>who is the property owner, property owner's spouse, qualifying relative of a property <br/>
<a id="pl.31.8"></a><var>31.8</var>owner, or spouse of a qualifying relative; <br/>
<a id="pl.31.9"></a><var>31.9</var>    (iii) the classification of the property under section 
         <statute_ref>273.13</statute_ref> for taxes payable in the <br/>
<a id="pl.31.10"></a><var>31.10</var>current year and in the prior year; <br/>
<a id="pl.31.11"></a><var>31.11</var>    (iv) an indication of whether the property was classified as a homestead for taxes <br/>
<a id="pl.31.12"></a><var>31.12</var>payable in the current year because of occupancy by a relative of the owner or by a <br/>
<a id="pl.31.13"></a><var>31.13</var>spouse of a relative; <br/>
<a id="pl.31.14"></a><var>31.14</var>    (v) the property taxes payable as defined in section 
         <statute_ref>290A.03, subdivision 13</statute_ref>, for the <br/>
<a id="pl.31.15"></a><var>31.15</var>current year and the prior year; <br/>
<a id="pl.31.16"></a><var>31.16</var>    (vi) the market value of improvements to the property first assessed for tax purposes <br/>
<a id="pl.31.17"></a><var>31.17</var>for taxes payable in the current year; <br/>
<a id="pl.31.18"></a><var>31.18</var>    (vii) the assessor's estimated market value assigned to the property for taxes payable <br/>
<a id="pl.31.19"></a><var>31.19</var>in the current year and the prior year; <br/>
<a id="pl.31.20"></a><var>31.20</var>    (viii) the taxable market value assigned to the property for taxes payable in the <br/>
<a id="pl.31.21"></a><var>31.21</var>current year and the prior year; <br/>
<a id="pl.31.22"></a><var>31.22</var>    (ix) whether there are delinquent property taxes owing on the homestead; <br/>
<a id="pl.31.23"></a><var>31.23</var>    (x) the unique taxing district in which the property is located; and <br/>
<a id="pl.31.24"></a><var>31.24</var>    (xi) such other information as the commissioner decides is necessary. <br/>
<a id="pl.31.25"></a><var>31.25</var>    The commissioner shall use the information provided on the lists as appropriate <br/>
<a id="pl.31.26"></a><var>31.26</var>under the law, including for the detection of improper claims by owners, or relatives <br/>
<a id="pl.31.27"></a><var>31.27</var>of owners, under chapter 290A. <br/>
<a id="pl.31.28"></a><var>31.28</var><b>EFFECTIVE DATE.</b>This section is effective for applications received after June <br/>
<a id="pl.31.29"></a><var>31.29</var>30, 2009.<br/>
<br/>
<a id="bill.4.8.0"></a><a id="pl.31.30"></a><var>31.30</var>    Sec. 8. Minnesota Statutes 2008, section 273.124, subdivision 21, is amended to read:<br/>
<a id="pl.31.31"></a><var>31.31</var>    Subd. 21. <b>Trust property; homestead.</b> Real or personal property held by a trustee <br/>
<a id="pl.31.32"></a><var>31.32</var>under a trust is eligible for classification as homestead property if: the property satisfies <br/>
<a id="pl.31.33"></a><var>31.33</var>the requirements of paragraph (a), (b), (c), or (d).<br/>
<a id="pl.31.34"></a><var>31.34</var>    (1) (a) The grantor or surviving spouse of the grantor of the trust occupies and <br/>
<a id="pl.31.35"></a><var>31.35</var>uses the property as a homestead;.<br/>
<a id="pl.32.1"></a><var>32.1</var>    (2) (b) A relative or surviving relative of the grantor who meets the requirements <br/>
<a id="pl.32.2"></a><var>32.2</var>of subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1, <br/>
<a id="pl.32.3"></a><var>32.3</var>paragraph (d), in the case of agricultural property, occupies and uses the property as <br/>
<a id="pl.32.4"></a><var>32.4</var>a homestead;.<br/>
<a id="pl.32.5"></a><var>32.5</var>    (3) (c) A family farm corporation, joint farm venture, limited liability company, or <br/>
<a id="pl.32.6"></a><var>32.6</var>partnership operating a family farm in which the grantor or the grantor's surviving spouse <br/>
<a id="pl.32.7"></a><var>32.7</var>is a shareholder, member, or partner rents the property,; and, either (1) a shareholder, <br/>
<a id="pl.32.8"></a><var>32.8</var>member, or partner of the corporation, joint farm venture, limited liability company, or <br/>
<a id="pl.32.9"></a><var>32.9</var>partnership occupies and uses the property as a homestead,; or is actively farming, (2) the <br/>
<a id="pl.32.10"></a><var>32.10</var>property is at least 40 acres, including undivided government lots and correctional 40's, and <br/>
<a id="pl.32.11"></a><var>32.11</var>a shareholder, member, or partner of the tenant-entity is actively farming the property on <br/>
<a id="pl.32.12"></a><var>32.12</var>behalf of the corporation, joint farm venture, limited liability company, or partnership; or.<br/>
<a id="pl.32.13"></a><var>32.13</var>    (4) (d) A person who has received homestead classification for property taxes <br/>
<a id="pl.32.14"></a><var>32.14</var>payable in 2000 on the basis of an unqualified legal right under the terms of the trust <br/>
<a id="pl.32.15"></a><var>32.15</var>agreement to occupy the property as that person's homestead and who continues to use the <br/>
<a id="pl.32.16"></a><var>32.16</var>property as a homestead; or, a person who received the homestead classification for taxes <br/>
<a id="pl.32.17"></a><var>32.17</var>payable in 2005 under clause (3) paragraph (c) who does not qualify under clause (3) <br/>
<a id="pl.32.18"></a><var>32.18</var>paragraph (c)  for taxes payable in 2006 or thereafter but who continues to qualify under <br/>
<a id="pl.32.19"></a><var>32.19</var>clause (3) paragraph (c)  as it existed for taxes payable in 2005.<br/>
<a id="pl.32.20"></a><var>32.20</var>    For purposes of this subdivision, "grantor" is defined as the person creating or <br/>
<a id="pl.32.21"></a><var>32.21</var>establishing a testamentary, inter Vivos, revocable or irrevocable trust by written <br/>
<a id="pl.32.22"></a><var>32.22</var>instrument or through the exercise of a power of appointment.<br/>
<a id="pl.32.23"></a><var>32.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.9.0"></a><a id="pl.32.24"></a><var>32.24</var>    Sec. 9. Minnesota Statutes 2008, section 273.13, subdivision 23, is amended to read:<br/>
<a id="pl.32.25"></a><var>32.25</var>    Subd. 23.  <b>Class 2.</b> (a) An agricultural homestead consists of class 2a agricultural <br/>
<a id="pl.32.26"></a><var>32.26</var>land that is homesteaded, along with any class 2b rural vacant land that is contiguous to <br/>
<a id="pl.32.27"></a><var>32.27</var>the class 2a land under the same ownership. The market value of the house and garage <br/>
<a id="pl.32.28"></a><var>32.28</var>and immediately surrounding one acre of land has the same class rates as class 1a or 1b <br/>
<a id="pl.32.29"></a><var>32.29</var>property under subdivision 22. The value of the remaining land including improvements <br/>
<a id="pl.32.30"></a><var>32.30</var>up to the first tier valuation limit of agricultural homestead property has a net class rate <br/>
<a id="pl.32.31"></a><var>32.31</var>of 0.5 percent of market value. The remaining property over the first tier has a class rate <br/>
<a id="pl.32.32"></a><var>32.32</var>of one percent of market value. For purposes of this subdivision, the "first tier valuation <br/>
<a id="pl.32.33"></a><var>32.33</var>limit of agricultural homestead property" and "first tier" means the limit certified under <br/>
<a id="pl.32.34"></a><var>32.34</var>section 
         <statute_ref>273.11</statute_ref>, subdivision 23. <br/>
<a id="pl.33.1"></a><var>33.1</var>    (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that <br/>
<a id="pl.33.2"></a><var>33.2</var>are agricultural land and buildings. Class 2a property has a net class rate of one percent of <br/>
<a id="pl.33.3"></a><var>33.3</var>market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a <br/>
<a id="pl.33.4"></a><var>33.4</var>property may contain property that would otherwise be classified as 2b, including but not <br/>
<a id="pl.33.5"></a><var>33.5</var>limited to sloughs, wooded wind shelters, acreage abutting ditches, and other similar land <br/>
<a id="pl.33.6"></a><var>33.6</var>impractical for the assessor to value separately from the rest of the property.<br/>
<a id="pl.33.7"></a><var>33.7</var>    An assessor may classify the part of a parcel described in this subdivision that is used <br/>
<a id="pl.33.8"></a><var>33.8</var>for agricultural purposes as class 2a and the remainder in the class appropriate to its use.<br/>
<a id="pl.33.9"></a><var>33.9</var>    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof, <br/>
<a id="pl.33.10"></a><var>33.10</var>that are unplatted real estate, rural in character and not used for agricultural purposes, <br/>
<a id="pl.33.11"></a><var>33.11</var>including land used for growing trees for timber, lumber, and wood and wood products, <br/>
<a id="pl.33.12"></a><var>33.12</var>that is not improved with a structure. The presence of a minor, ancillary nonresidential <br/>
<a id="pl.33.13"></a><var>33.13</var>structure as defined by the commissioner of revenue does not disqualify the property from <br/>
<a id="pl.33.14"></a><var>33.14</var>classification under this paragraph. Any parcel of 20 acres or more improved with a <br/>
<a id="pl.33.15"></a><var>33.15</var>structure that is not a minor, ancillary nonresidential structure must be split-classified, and <br/>
<a id="pl.33.16"></a><var>33.16</var>ten acres must be assigned to the split parcel containing the structure. Class 2b property <br/>
<a id="pl.33.17"></a><var>33.17</var>has a net class rate of one percent of market value unless it is part of an agricultural <br/>
<a id="pl.33.18"></a><var>33.18</var>homestead under paragraph (a), or qualifies as class 2c under paragraph (d).<br/>
<a id="pl.33.19"></a><var>33.19</var>    (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 <br/>
<a id="pl.33.20"></a><var>33.20</var>acres statewide per taxpayer that is being managed under a forest management plan that <br/>
<a id="pl.33.21"></a><var>33.21</var>meets the requirements of chapter 290C, but is not enrolled in the sustainable forest <br/>
<a id="pl.33.22"></a><var>33.22</var>resource management incentive program. It has a class rate of .65 percent, provided <br/>
<a id="pl.33.23"></a><var>33.23</var>that the owner of the property must apply to the assessor to receive the reduced class in <br/>
<a id="pl.33.24"></a><var>33.24</var>order for the property to initially qualify for the reduced rate and provide the information <br/>
<a id="pl.33.25"></a><var>33.25</var>required by the assessor to verify that the property qualifies for the reduced rate. If the <br/>
<a id="pl.33.26"></a><var>33.26</var>assessor receives the application and information before May 1 in an assessment year, <br/>
<a id="pl.33.27"></a><var>33.27</var>the property qualifies beginning with that assessment year. If the assessor receives the <br/>
<a id="pl.33.28"></a><var>33.28</var>application and information after April 30 in an assessment year, the property qualifies <br/>
<a id="pl.33.29"></a><var>33.29</var>beginning with the next assessment year. The commissioner of natural resources must <br/>
<a id="pl.33.30"></a><var>33.30</var>concur that the land is qualified. The commissioner of natural resources shall annually <br/>
<a id="pl.33.31"></a><var>33.31</var>provide county assessors verification information on a timely basis. The presence of a <br/>
<a id="pl.33.32"></a><var>33.32</var>minor, ancillary nonresidential structure as defined by the commissioner of revenue does <br/>
<a id="pl.33.33"></a><var>33.33</var>not disqualify the property from classification under this paragraph.<br/>
<a id="pl.33.34"></a><var>33.34</var>    (e) Agricultural land as used in this section means contiguous acreage of ten <br/>
<a id="pl.33.35"></a><var>33.35</var>acres or more, used during the preceding year for agricultural purposes. "Agricultural <br/>
<a id="pl.33.36"></a><var>33.36</var>purposes" as used in this section means the raising, cultivation, drying, or storage of <br/>
<a id="pl.34.1"></a><var>34.1</var>agricultural products for sale, or the storage of machinery or equipment used in support <br/>
<a id="pl.34.2"></a><var>34.2</var>of agricultural production by the same farm entity. For a property to be classified as <br/>
<a id="pl.34.3"></a><var>34.3</var>agricultural based only on the drying or storage of agricultural products, the products <br/>
<a id="pl.34.4"></a><var>34.4</var>being dried or stored must have been produced by the same farm entity as the entity <br/>
<a id="pl.34.5"></a><var>34.5</var>operating the drying or storage facility. "Agricultural purposes" also includes enrollment <br/>
<a id="pl.34.6"></a><var>34.6</var>in the Reinvest in Minnesota program under sections 
         <statute_ref>103F.501</statute_ref> to 
         <statute_ref>103F.535</statute_ref> or the federal <br/>
<a id="pl.34.7"></a><var>34.7</var>Conservation Reserve Program as contained in Public Law 99-198 or a similar state <br/>
<a id="pl.34.8"></a><var>34.8</var>or federal conservation program if the property was classified as agricultural (i) under <br/>
<a id="pl.34.9"></a><var>34.9</var>this subdivision for the assessment year 2002 or (ii) in the year prior to its enrollment. <br/>
<a id="pl.34.10"></a><var>34.10</var>Agricultural classification shall not be based upon the market value of any residential <br/>
<a id="pl.34.11"></a><var>34.11</var>structures on the parcel or contiguous parcels under the same ownership. <br/>
<a id="pl.34.12"></a><var>34.12</var>    (f) Real estate of less than ten acres, which is exclusively or intensively used for <br/>
<a id="pl.34.13"></a><var>34.13</var>raising or cultivating agricultural products, shall be considered as agricultural land. To <br/>
<a id="pl.34.14"></a><var>34.14</var>qualify under this paragraph, property that includes a residential structure must be used <br/>
<a id="pl.34.15"></a><var>34.15</var>intensively for one of the following purposes:<br/>
<a id="pl.34.16"></a><var>34.16</var>    (i) for drying or storage of grain or storage of machinery or equipment used to <br/>
<a id="pl.34.17"></a><var>34.17</var>support agricultural activities on other parcels of property operated by the same farming <br/>
<a id="pl.34.18"></a><var>34.18</var>entity;<br/>
<a id="pl.34.19"></a><var>34.19</var>    (ii) as a nursery, provided that only those acres used to produce nursery stock are <br/>
<a id="pl.34.20"></a><var>34.20</var>considered agricultural land;<br/>
<a id="pl.34.21"></a><var>34.21</var>    (iii) for livestock or poultry confinement, provided that land that is used only for <br/>
<a id="pl.34.22"></a><var>34.22</var>pasturing and grazing does not qualify; or<br/>
<a id="pl.34.23"></a><var>34.23</var>    (iv) for market farming; for purposes of this paragraph, "market farming" means the <br/>
<a id="pl.34.24"></a><var>34.24</var>cultivation of one or more fruits or vegetables or production of animal or other agricultural <br/>
<a id="pl.34.25"></a><var>34.25</var>products for sale to local markets by the farmer or an organization with which the farmer <br/>
<a id="pl.34.26"></a><var>34.26</var>is affiliated. <br/>
<a id="pl.34.27"></a><var>34.27</var>    (g) Land shall be classified as agricultural even if all or a portion of the agricultural <br/>
<a id="pl.34.28"></a><var>34.28</var>use of that property is the leasing to, or use by another person for agricultural purposes. <br/>
<a id="pl.34.29"></a><var>34.29</var>    Classification under this subdivision is not determinative for qualifying under <br/>
<a id="pl.34.30"></a><var>34.30</var>section 
         <statute_ref>273.111</statute_ref>. <br/>
<a id="pl.34.31"></a><var>34.31</var>    (h) The property classification under this section supersedes, for property tax <br/>
<a id="pl.34.32"></a><var>34.32</var>purposes only, any locally administered agricultural policies or land use restrictions that <br/>
<a id="pl.34.33"></a><var>34.33</var>define minimum or maximum farm acreage. <br/>
<a id="pl.34.34"></a><var>34.34</var>    (i) The term "agricultural products" as used in this subdivision includes production <br/>
<a id="pl.34.35"></a><var>34.35</var>for sale of: <br/>
<a id="pl.35.1"></a><var>35.1</var>    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing <br/>
<a id="pl.35.2"></a><var>35.2</var>animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, <br/>
<a id="pl.35.3"></a><var>35.3</var>bees, and apiary products by the owner; <br/>
<a id="pl.35.4"></a><var>35.4</var>    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned <br/>
<a id="pl.35.5"></a><var>35.5</var>for agricultural use; <br/>
<a id="pl.35.6"></a><var>35.6</var>    (3) the commercial boarding of horses if the boarding is done in conjunction with <br/>
<a id="pl.35.7"></a><var>35.7</var>raising or cultivating agricultural products as defined in clause (1); <br/>
<a id="pl.35.8"></a><var>35.8</var>    (4) property which is owned and operated by nonprofit organizations used for <br/>
<a id="pl.35.9"></a><var>35.9</var>equestrian activities, excluding racing; <br/>
<a id="pl.35.10"></a><var>35.10</var>    (5) game birds and waterfowl bred and raised for use on a shooting preserve licensed <br/>
<a id="pl.35.11"></a><var>35.11</var>under section 
         <statute_ref>97A.115</statute_ref>; <br/>
<a id="pl.35.12"></a><var>35.12</var>    (6) insects primarily bred to be used as food for animals; <br/>
<a id="pl.35.13"></a><var>35.13</var>    (7) trees, grown for sale as a crop, including short rotation woody crops, and not <br/>
<a id="pl.35.14"></a><var>35.14</var>sold for timber, lumber, wood, or wood products; and <br/>
<a id="pl.35.15"></a><var>35.15</var>    (8) maple syrup taken from trees grown by a person licensed by the Minnesota <br/>
<a id="pl.35.16"></a><var>35.16</var>Department of Agriculture under chapter 28A as a food processor. <br/>
<a id="pl.35.17"></a><var>35.17</var>    (j) If a parcel used for agricultural purposes is also used for commercial or industrial <br/>
<a id="pl.35.18"></a><var>35.18</var>purposes, including but not limited to: <br/>
<a id="pl.35.19"></a><var>35.19</var>    (1) wholesale and retail sales; <br/>
<a id="pl.35.20"></a><var>35.20</var>    (2) processing of raw agricultural products or other goods; <br/>
<a id="pl.35.21"></a><var>35.21</var>    (3) warehousing or storage of processed goods; and <br/>
<a id="pl.35.22"></a><var>35.22</var>    (4) office facilities for the support of the activities enumerated in clauses (1), (2), <br/>
<a id="pl.35.23"></a><var>35.23</var>and (3), <br/>
<a id="pl.35.24"></a><var>35.24</var>the assessor shall classify the part of the parcel used for agricultural purposes as class <br/>
<a id="pl.35.25"></a><var>35.25</var>1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its <br/>
<a id="pl.35.26"></a><var>35.26</var>use. The grading, sorting, and packaging of raw agricultural products for first sale is <br/>
<a id="pl.35.27"></a><var>35.27</var>considered an agricultural purpose. A greenhouse or other building where horticultural <br/>
<a id="pl.35.28"></a><var>35.28</var>or nursery products are grown that is also used for the conduct of retail sales must be <br/>
<a id="pl.35.29"></a><var>35.29</var>classified as agricultural if it is primarily used for the growing of horticultural or nursery <br/>
<a id="pl.35.30"></a><var>35.30</var>products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of <br/>
<a id="pl.35.31"></a><var>35.31</var>those products. Use of a greenhouse or building only for the display of already grown <br/>
<a id="pl.35.32"></a><var>35.32</var>horticultural or nursery products does not qualify as an agricultural purpose. <br/>
<a id="pl.35.33"></a><var>35.33</var>    (k) The assessor shall determine and list separately on the records the market value <br/>
<a id="pl.35.34"></a><var>35.34</var>of the homestead dwelling and the one acre of land on which that dwelling is located. If <br/>
<a id="pl.35.35"></a><var>35.35</var>any farm buildings or structures are located on this homesteaded acre of land, their market <br/>
<a id="pl.35.36"></a><var>35.36</var>value shall not be included in this separate determination. <br/>
<a id="pl.36.1"></a><var>36.1</var>    (k) (l) Class 2d airport landing area consists of a landing area or public access area <br/>
<a id="pl.36.2"></a><var>36.2</var>of a privately owned public use airport. It has a class rate of one percent of market value. <br/>
<a id="pl.36.3"></a><var>36.3</var>To qualify for classification under this paragraph, a privately owned public use airport <br/>
<a id="pl.36.4"></a><var>36.4</var>must be licensed as a public airport under section 
         <statute_ref>360.018</statute_ref>. For purposes of this paragraph, <br/>
<a id="pl.36.5"></a><var>36.5</var>"landing area" means that part of a privately owned public use airport properly cleared, <br/>
<a id="pl.36.6"></a><var>36.6</var>regularly maintained, and made available to the public for use by aircraft and includes <br/>
<a id="pl.36.7"></a><var>36.7</var>runways, taxiways, aprons, and sites upon which are situated landing or navigational aids. <br/>
<a id="pl.36.8"></a><var>36.8</var>A landing area also includes land underlying both the primary surface and the approach <br/>
<a id="pl.36.9"></a><var>36.9</var>surfaces that comply with all of the following: <br/>
<a id="pl.36.10"></a><var>36.10</var>    (i) the land is properly cleared and regularly maintained for the primary purposes of <br/>
<a id="pl.36.11"></a><var>36.11</var>the landing, taking off, and taxiing of aircraft; but that portion of the land that contains <br/>
<a id="pl.36.12"></a><var>36.12</var>facilities for servicing, repair, or maintenance of aircraft is not included as a landing area; <br/>
<a id="pl.36.13"></a><var>36.13</var>    (ii) the land is part of the airport property; and <br/>
<a id="pl.36.14"></a><var>36.14</var>    (iii) the land is not used for commercial or residential purposes. <br/>
<a id="pl.36.15"></a><var>36.15</var>The land contained in a landing area under this paragraph must be described and certified <br/>
<a id="pl.36.16"></a><var>36.16</var>by the commissioner of transportation. The certification is effective until it is modified, <br/>
<a id="pl.36.17"></a><var>36.17</var>or until the airport or landing area no longer meets the requirements of this paragraph. <br/>
<a id="pl.36.18"></a><var>36.18</var>For purposes of this paragraph, "public access area" means property used as an aircraft <br/>
<a id="pl.36.19"></a><var>36.19</var>parking ramp, apron, or storage hangar, or an arrival and departure building in connection <br/>
<a id="pl.36.20"></a><var>36.20</var>with the airport. <br/>
<a id="pl.36.21"></a><var>36.21</var>    (l) (m) Class 2e consists of land with a commercial aggregate deposit that is not <br/>
<a id="pl.36.22"></a><var>36.22</var>actively being mined and is not otherwise classified as class 2a or 2b. It has a class rate of <br/>
<a id="pl.36.23"></a><var>36.23</var>one percent of market value. To qualify for classification under this paragraph, the property <br/>
<a id="pl.36.24"></a><var>36.24</var>must be at least ten contiguous acres in size and the owner of the property must record with <br/>
<a id="pl.36.25"></a><var>36.25</var>the county recorder of the county in which the property is located an affidavit containing:<br/>
<a id="pl.36.26"></a><var>36.26</var>    (1) a legal description of the property;<br/>
<a id="pl.36.27"></a><var>36.27</var>    (2) a disclosure that the property contains a commercial aggregate deposit that is not <br/>
<a id="pl.36.28"></a><var>36.28</var>actively being mined but is present on the entire parcel enrolled;<br/>
<a id="pl.36.29"></a><var>36.29</var>    (3) documentation that the conditional use under the county or local zoning <br/>
<a id="pl.36.30"></a><var>36.30</var>ordinance of this property is for mining; and<br/>
<a id="pl.36.31"></a><var>36.31</var>    (4) documentation that a permit has been issued by the local unit of government <br/>
<a id="pl.36.32"></a><var>36.32</var>or the mining activity is allowed under local ordinance. The disclosure must include a <br/>
<a id="pl.36.33"></a><var>36.33</var>statement from a registered professional geologist, engineer, or soil scientist delineating <br/>
<a id="pl.36.34"></a><var>36.34</var>the deposit and certifying that it is a commercial aggregate deposit.<br/>
<a id="pl.36.35"></a><var>36.35</var>    For purposes of this section and section 
         <statute_ref>273.1115</statute_ref>, "commercial aggregate deposit" <br/>
<a id="pl.36.36"></a><var>36.36</var>means a deposit that will yield crushed stone or sand and gravel that is suitable for use <br/>
<a id="pl.37.1"></a><var>37.1</var>as a construction aggregate; and "actively mined" means the removal of top soil and <br/>
<a id="pl.37.2"></a><var>37.2</var>overburden in preparation for excavation or excavation of a commercial deposit.<br/>
<a id="pl.37.3"></a><var>37.3</var>    (m) (n) When any portion of the property under this subdivision or subdivision 22 <br/>
<a id="pl.37.4"></a><var>37.4</var>begins to be actively mined, the owner must file a supplemental affidavit within 60 days <br/>
<a id="pl.37.5"></a><var>37.5</var>from the day any aggregate is removed stating the number of acres of the property that is <br/>
<a id="pl.37.6"></a><var>37.6</var>actively being mined. The acres actively being mined must be (1) valued and classified <br/>
<a id="pl.37.7"></a><var>37.7</var>under subdivision 24 in the next subsequent assessment year, and (2) removed from the <br/>
<a id="pl.37.8"></a><var>37.8</var>aggregate resource preservation property tax program under section 
         <statute_ref>273.1115</statute_ref>, if the <br/>
<a id="pl.37.9"></a><var>37.9</var>land was enrolled in that program. Copies of the original affidavit and all supplemental <br/>
<a id="pl.37.10"></a><var>37.10</var>affidavits must be filed with the county assessor, the local zoning administrator, and the <br/>
<a id="pl.37.11"></a><var>37.11</var>Department of Natural Resources, Division of Land and Minerals. A supplemental <br/>
<a id="pl.37.12"></a><var>37.12</var>affidavit must be filed each time a subsequent portion of the property is actively mined, <br/>
<a id="pl.37.13"></a><var>37.13</var>provided that the minimum acreage change is five acres, even if the actual mining activity <br/>
<a id="pl.37.14"></a><var>37.14</var>constitutes less than five acres.<br/>
<a id="pl.37.15"></a><var>37.15</var>(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are <br/>
<a id="pl.37.16"></a><var>37.16</var>not rules, are exempt from the rulemaking provisions of chapter 14, and the provisions <br/>
<a id="pl.37.17"></a><var>37.17</var>in section 14.386 concerning exempt rules do not apply.<br/>
<a id="pl.37.18"></a><var>37.18</var><b>EFFECTIVE DATE.</b>The section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.10.0"></a><a id="pl.37.19"></a><var>37.19</var>    Sec. 10. Minnesota Statutes 2008, section 273.13, subdivision 25, is amended to read:<br/>
<a id="pl.37.20"></a><var>37.20</var>    Subd. 25.  <b>Class 4.</b> (a) Class 4a is residential real estate containing four or more <br/>
<a id="pl.37.21"></a><var>37.21</var>units and used or held for use by the owner or by the tenants or lessees of the owner <br/>
<a id="pl.37.22"></a><var>37.22</var>as a residence for rental periods of 30 days or more, excluding property qualifying for <br/>
<a id="pl.37.23"></a><var>37.23</var>class 4d. Class 4a also includes hospitals licensed under sections 
         <statute_ref>144.50</statute_ref> to 
         <statute_ref>144.56</statute_ref>, other <br/>
<a id="pl.37.24"></a><var>37.24</var>than hospitals exempt under section 
         <statute_ref>272.02</statute_ref>, and contiguous property used for hospital <br/>
<a id="pl.37.25"></a><var>37.25</var>purposes, without regard to whether the property has been platted or subdivided. The <br/>
<a id="pl.37.26"></a><var>37.26</var>market value of class 4a property has a class rate of 1.25 percent. <br/>
<a id="pl.37.27"></a><var>37.27</var>    (b) Class 4b includes: <br/>
<a id="pl.37.28"></a><var>37.28</var>    (1) residential real estate containing less than four units that does not qualify as class <br/>
<a id="pl.37.29"></a><var>37.29</var>4bb, other than seasonal residential recreational property; <br/>
<a id="pl.37.30"></a><var>37.30</var>    (2) manufactured homes not classified under any other provision; <br/>
<a id="pl.37.31"></a><var>37.31</var>    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead <br/>
<a id="pl.37.32"></a><var>37.32</var>farm classified under subdivision 23, paragraph (b) containing two or three units; and <br/>
<a id="pl.37.33"></a><var>37.33</var>    (4) unimproved property that is classified residential as determined under subdivision <br/>
<a id="pl.37.34"></a><var>37.34</var>33. <br/>
<a id="pl.37.35"></a><var>37.35</var>    The market value of class 4b property has a class rate of 1.25 percent. <br/>
<a id="pl.38.1"></a><var>38.1</var>    (c) Class 4bb includes: <br/>
<a id="pl.38.2"></a><var>38.2</var>    (1) nonhomestead residential real estate containing one unit, other than seasonal <br/>
<a id="pl.38.3"></a><var>38.3</var>residential recreational property; and <br/>
<a id="pl.38.4"></a><var>38.4</var>    (2) a single family dwelling, garage, and surrounding one acre of property on a <br/>
<a id="pl.38.5"></a><var>38.5</var>nonhomestead farm classified under subdivision 23, paragraph (b). <br/>
<a id="pl.38.6"></a><var>38.6</var>    Class 4bb property has the same class rates as class 1a property under subdivision 22. <br/>
<a id="pl.38.7"></a><var>38.7</var>    Property that has been classified as seasonal residential recreational property at <br/>
<a id="pl.38.8"></a><var>38.8</var>any time during which it has been owned by the current owner or spouse of the current <br/>
<a id="pl.38.9"></a><var>38.9</var>owner does not qualify for class 4bb. <br/>
<a id="pl.38.10"></a><var>38.10</var>    (d) Class 4c property includes: <br/>
<a id="pl.38.11"></a><var>38.11</var>    (1) except as provided in subdivision 22, paragraph (c), or subdivision 23, paragraph <br/>
<a id="pl.38.12"></a><var>38.12</var>(b), clause (1), real and personal property devoted to temporary and seasonal residential <br/>
<a id="pl.38.13"></a><var>38.13</var>occupancy for recreation purposes, including real and personal property devoted to <br/>
<a id="pl.38.14"></a><var>38.14</var>temporary and seasonal residential occupancy for recreation purposes and not devoted to <br/>
<a id="pl.38.15"></a><var>38.15</var>commercial purposes for more than 250 days in the year preceding the year of assessment. <br/>
<a id="pl.38.16"></a><var>38.16</var>For purposes of this clause, property is devoted to a commercial purpose on a specific <br/>
<a id="pl.38.17"></a><var>38.17</var>day if any portion of the property is used for residential occupancy, and a fee is charged <br/>
<a id="pl.38.18"></a><var>38.18</var>for residential occupancy. Class 4c property under this clause must contain three or <br/>
<a id="pl.38.19"></a><var>38.19</var>more rental units. A "rental unit" is defined as a cabin, condominium, townhouse, <br/>
<a id="pl.38.20"></a><var>38.20</var>sleeping room, or individual camping site equipped with water and electrical hookups <br/>
<a id="pl.38.21"></a><var>38.21</var>for recreational vehicles. Class 4c property under this clause must provide recreational <br/>
<a id="pl.38.22"></a><var>38.22</var>activities such as renting ice fishing houses, boats and motors, snowmobiles, downhill or <br/>
<a id="pl.38.23"></a><var>38.23</var>cross-country ski equipment; provide marina services, launch services, or guide services; <br/>
<a id="pl.38.24"></a><var>38.24</var>or sell bait and fishing tackle. A camping pad offered for rent by a property that otherwise <br/>
<a id="pl.38.25"></a><var>38.25</var>qualifies for class 4c under this clause is also class 4c under this clause regardless of the <br/>
<a id="pl.38.26"></a><var>38.26</var>term of the rental agreement, as long as the use of the camping pad does not exceed 250 <br/>
<a id="pl.38.27"></a><var>38.27</var>days. In order for a property to be classified as class 4c, seasonal residential recreational <br/>
<a id="pl.38.28"></a><var>38.28</var>for commercial purposes under this clause, at least 40 percent of the annual gross lodging <br/>
<a id="pl.38.29"></a><var>38.29</var>receipts related to the property must be from business conducted during 90 consecutive <br/>
<a id="pl.38.30"></a><var>38.30</var>days and either (i) at least 60 percent of all paid bookings by lodging guests during the <br/>
<a id="pl.38.31"></a><var>38.31</var>year must be for periods of at least two consecutive nights; or (ii) at least 20 percent <br/>
<a id="pl.38.32"></a><var>38.32</var>of the annual gross receipts must be from charges for rental of fish houses, boats and <br/>
<a id="pl.38.33"></a><var>38.33</var>motors, snowmobiles, downhill or cross-country ski equipment, or charges for marina <br/>
<a id="pl.38.34"></a><var>38.34</var>services, launch services, and guide services, or the sale of bait and fishing tackle. For <br/>
<a id="pl.38.35"></a><var>38.35</var>purposes of this determination, a paid booking of five or more nights shall be counted as <br/>
<a id="pl.38.36"></a><var>38.36</var>two bookings. Class 4c property classified under this clause also includes commercial <br/>
<a id="pl.39.1"></a><var>39.1</var>use real property used exclusively for recreational purposes in conjunction with other <br/>
<a id="pl.39.2"></a><var>39.2</var>class 4c property classified under this clause and devoted to temporary and seasonal <br/>
<a id="pl.39.3"></a><var>39.3</var>residential occupancy for recreational purposes, up to a total of two acres, provided the <br/>
<a id="pl.39.4"></a><var>39.4</var>property is not devoted to commercial recreational use for more than 250 days in the year <br/>
<a id="pl.39.5"></a><var>39.5</var>preceding the year of assessment and is located within two miles of the class 4c property <br/>
<a id="pl.39.6"></a><var>39.6</var>with which it is used. Owners of real and personal property devoted to temporary and <br/>
<a id="pl.39.7"></a><var>39.7</var>seasonal residential occupancy for recreation purposes and all or a portion of which was <br/>
<a id="pl.39.8"></a><var>39.8</var>devoted to commercial purposes for not more than 250 days in the year preceding the <br/>
<a id="pl.39.9"></a><var>39.9</var>year of assessment desiring classification as class 4c, must submit a declaration to the <br/>
<a id="pl.39.10"></a><var>39.10</var>assessor designating the cabins or units occupied for 250 days or less in the year preceding <br/>
<a id="pl.39.11"></a><var>39.11</var>the year of assessment by January 15 of the assessment year. Those cabins or units and <br/>
<a id="pl.39.12"></a><var>39.12</var>a proportionate share of the land on which they are located must be designated class <br/>
<a id="pl.39.13"></a><var>39.13</var>4c under this clause  as otherwise provided. The remainder of the cabins or units and a <br/>
<a id="pl.39.14"></a><var>39.14</var>proportionate share of the land on which they are located will be designated as class 3a. <br/>
<a id="pl.39.15"></a><var>39.15</var>The owner of property desiring designation as class 4c property under this clause must <br/>
<a id="pl.39.16"></a><var>39.16</var>provide guest registers or other records demonstrating that the units for which class 4c <br/>
<a id="pl.39.17"></a><var>39.17</var>designation is sought were not occupied for more than 250 days in the year preceding the <br/>
<a id="pl.39.18"></a><var>39.18</var>assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar, <br/>
<a id="pl.39.19"></a><var>39.19</var>(3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility <br/>
<a id="pl.39.20"></a><var>39.20</var>operated on a commercial basis not directly related to temporary and seasonal residential <br/>
<a id="pl.39.21"></a><var>39.21</var>occupancy for recreation purposes does not qualify for class 4c; <br/>
<a id="pl.39.22"></a><var>39.22</var>    (2) qualified property used as a golf course if: <br/>
<a id="pl.39.23"></a><var>39.23</var>    (i) it is open to the public on a daily fee basis. It may charge membership fees or <br/>
<a id="pl.39.24"></a><var>39.24</var>dues, but a membership fee may not be required in order to use the property for golfing, <br/>
<a id="pl.39.25"></a><var>39.25</var>and its green fees for golfing must be comparable to green fees typically charged by <br/>
<a id="pl.39.26"></a><var>39.26</var>municipal courses; and <br/>
<a id="pl.39.27"></a><var>39.27</var>    (ii) it meets the requirements of section 
         <statute_ref>273.112, subdivision 3</statute_ref>, paragraph (d). <br/>
<a id="pl.39.28"></a><var>39.28</var>    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction <br/>
<a id="pl.39.29"></a><var>39.29</var>with the golf course is classified as class 3a property; <br/>
<a id="pl.39.30"></a><var>39.30</var>    (3) real property up to a maximum of three acres of land owned and used by a <br/>
<a id="pl.39.31"></a><var>39.31</var>nonprofit community service oriented organization and that is not used for residential <br/>
<a id="pl.39.32"></a><var>39.32</var>purposes on either a temporary or permanent basis, qualifies for class 4c provided that <br/>
<a id="pl.39.33"></a><var>39.33</var>it meets either of the following: <br/>
<a id="pl.39.34"></a><var>39.34</var>    (i) the property is not used for a revenue-producing activity for more than six days <br/>
<a id="pl.39.35"></a><var>39.35</var>in the calendar year preceding the year of assessment; or <br/>
<a id="pl.40.1"></a><var>40.1</var>    (ii) the organization makes annual charitable contributions and donations at least <br/>
<a id="pl.40.2"></a><var>40.2</var>equal to the property's previous year's property taxes and the property is allowed to be <br/>
<a id="pl.40.3"></a><var>40.3</var>used for public and community meetings or events for no charge, as appropriate to the <br/>
<a id="pl.40.4"></a><var>40.4</var>size of the facility. <br/>
<a id="pl.40.5"></a><var>40.5</var>    For purposes of this clause, <br/>
<a id="pl.40.6"></a><var>40.6</var>    (A) "charitable contributions and donations" has the same meaning as lawful <br/>
<a id="pl.40.7"></a><var>40.7</var>gambling purposes under section 
         <statute_ref>349.12, subdivision 25</statute_ref>, excluding those purposes <br/>
<a id="pl.40.8"></a><var>40.8</var>relating to the payment of taxes, assessments, fees, auditing costs, and utility payments; <br/>
<a id="pl.40.9"></a><var>40.9</var>    (B) "property taxes" excludes the state general tax; <br/>
<a id="pl.40.10"></a><var>40.10</var>    (C) a "nonprofit community service oriented organization" means any corporation, <br/>
<a id="pl.40.11"></a><var>40.11</var>society, association, foundation, or institution organized and operated exclusively for <br/>
<a id="pl.40.12"></a><var>40.12</var>charitable, religious, fraternal, civic, or educational purposes, and which is exempt from <br/>
<a id="pl.40.13"></a><var>40.13</var>federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal <br/>
<a id="pl.40.14"></a><var>40.14</var>Revenue Code; and <br/>
<a id="pl.40.15"></a><var>40.15</var>    (D) "revenue-producing activities" shall include but not be limited to property or that <br/>
<a id="pl.40.16"></a><var>40.16</var>portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt <br/>
<a id="pl.40.17"></a><var>40.17</var>liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling <br/>
<a id="pl.40.18"></a><var>40.18</var>alley, a retail store, gambling conducted by organizations licensed under chapter 349, an <br/>
<a id="pl.40.19"></a><var>40.19</var>insurance business, or office or other space leased or rented to a lessee who conducts a <br/>
<a id="pl.40.20"></a><var>40.20</var>for-profit enterprise on the premises. <br/>
<a id="pl.40.21"></a><var>40.21</var>Any portion of the property not qualifying under either item (i) which is used for <br/>
<a id="pl.40.22"></a><var>40.22</var>revenue-producing activities for more than six days in the calendar year preceding the <br/>
<a id="pl.40.23"></a><var>40.23</var>year of assessment shall be assessed as or (ii) is class 3a. The use of the property for social <br/>
<a id="pl.40.24"></a><var>40.24</var>events open exclusively to members and their guests for periods of less than 24 hours, <br/>
<a id="pl.40.25"></a><var>40.25</var>when an admission is not charged nor any revenues are received by the organization shall <br/>
<a id="pl.40.26"></a><var>40.26</var>not be considered a revenue-producing activity. <br/>
<a id="pl.40.27"></a><var>40.27</var>    The organization shall maintain records of its charitable contributions and donations <br/>
<a id="pl.40.28"></a><var>40.28</var>and of public meetings and events held on the property and make them available upon <br/>
<a id="pl.40.29"></a><var>40.29</var>request any time to the assessor to ensure eligibility. An organization meeting the <br/>
<a id="pl.40.30"></a><var>40.30</var>requirement under item (ii) must file an application by May 1 with the assessor for <br/>
<a id="pl.40.31"></a><var>40.31</var>eligibility for the current year's assessment. The commissioner shall prescribe a uniform <br/>
<a id="pl.40.32"></a><var>40.32</var>application form and instructions; <br/>
<a id="pl.40.33"></a><var>40.33</var>    (4) postsecondary student housing of not more than one acre of land that is owned by <br/>
<a id="pl.40.34"></a><var>40.34</var>a nonprofit corporation organized under chapter 317A and is used exclusively by a student <br/>
<a id="pl.40.35"></a><var>40.35</var>cooperative, sorority, or fraternity for on-campus housing or housing located within two <br/>
<a id="pl.40.36"></a><var>40.36</var>miles of the border of a college campus; <br/>
<a id="pl.41.1"></a><var>41.1</var>    (5) manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>; <br/>
<a id="pl.41.2"></a><var>41.2</var>    (6) real property that is actively and exclusively devoted to indoor fitness, health, <br/>
<a id="pl.41.3"></a><var>41.3</var>social, recreational, and related uses, is owned and operated by a not-for-profit corporation, <br/>
<a id="pl.41.4"></a><var>41.4</var>and is located within the metropolitan area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>; <br/>
<a id="pl.41.5"></a><var>41.5</var>    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt <br/>
<a id="pl.41.6"></a><var>41.6</var>under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that: <br/>
<a id="pl.41.7"></a><var>41.7</var>    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan <br/>
<a id="pl.41.8"></a><var>41.8</var>Airports Commission, or group thereof; and <br/>
<a id="pl.41.9"></a><var>41.9</var>    (ii) the land lease, or any ordinance or signed agreement restricting the use of the <br/>
<a id="pl.41.10"></a><var>41.10</var>leased premise, prohibits commercial activity performed at the hangar. <br/>
<a id="pl.41.11"></a><var>41.11</var>    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must <br/>
<a id="pl.41.12"></a><var>41.12</var>be filed by the new owner with the assessor of the county where the property is located <br/>
<a id="pl.41.13"></a><var>41.13</var>within 60 days of the sale; <br/>
<a id="pl.41.14"></a><var>41.14</var>    (8) a privately owned noncommercial aircraft storage hangar not exempt under <br/>
<a id="pl.41.15"></a><var>41.15</var>section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that: <br/>
<a id="pl.41.16"></a><var>41.16</var>    (i) the land abuts a public airport; and <br/>
<a id="pl.41.17"></a><var>41.17</var>    (ii) the owner of the aircraft storage hangar provides the assessor with a signed <br/>
<a id="pl.41.18"></a><var>41.18</var>agreement restricting the use of the premises, prohibiting commercial use or activity <br/>
<a id="pl.41.19"></a><var>41.19</var>performed at the hangar; and <br/>
<a id="pl.41.20"></a><var>41.20</var>    (9) residential real estate, a portion of which is used by the owner for homestead <br/>
<a id="pl.41.21"></a><var>41.21</var>purposes, and that is also a place of lodging, if all of the following criteria are met: <br/>
<a id="pl.41.22"></a><var>41.22</var>    (i) rooms are provided for rent to transient guests that generally stay for periods <br/>
<a id="pl.41.23"></a><var>41.23</var>of 14 or fewer days; <br/>
<a id="pl.41.24"></a><var>41.24</var>    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated <br/>
<a id="pl.41.25"></a><var>41.25</var>in the basic room rate; <br/>
<a id="pl.41.26"></a><var>41.26</var>    (iii) meals are not provided to the general public except for special events on fewer <br/>
<a id="pl.41.27"></a><var>41.27</var>than seven days in the calendar year preceding the year of the assessment; and <br/>
<a id="pl.41.28"></a><var>41.28</var>    (iv) the owner is the operator of the property.<br/>
<a id="pl.41.29"></a><var>41.29</var>The market value subject to the 4c classification under this clause is limited to five rental <br/>
<a id="pl.41.30"></a><var>41.30</var>units. Any rental units on the property in excess of five, must be valued and assessed as <br/>
<a id="pl.41.31"></a><var>41.31</var>class 3a. The portion of the property used for purposes of a homestead by the owner must <br/>
<a id="pl.41.32"></a><var>41.32</var>be classified as class 1a property under subdivision 22; and<br/>
<a id="pl.41.33"></a><var>41.33</var>    (10) real property up to a maximum of three acres and operated as a restaurant <br/>
<a id="pl.41.34"></a><var>41.34</var>as defined under section 
         <statute_ref>157.15, subdivision 12</statute_ref>, provided it: (A) is located on a lake <br/>
<a id="pl.41.35"></a><var>41.35</var>as defined under section 
         <statute_ref>103G.005, subdivision 15</statute_ref>, paragraph (a), clause (3); and (B) <br/>
<a id="pl.41.36"></a><var>41.36</var>is either devoted to commercial purposes for not more than 250 consecutive days, or <br/>
<a id="pl.42.1"></a><var>42.1</var>receives at least 60 percent of its annual gross receipts from business conducted during <br/>
<a id="pl.42.2"></a><var>42.2</var>four consecutive months. Gross receipts from the sale of alcoholic beverages must be <br/>
<a id="pl.42.3"></a><var>42.3</var>included in determining the property's qualification under subitem (B). The property's <br/>
<a id="pl.42.4"></a><var>42.4</var>primary business must be as a restaurant and not as a bar. Gross receipts from gift shop <br/>
<a id="pl.42.5"></a><var>42.5</var>sales located on the premises must be excluded. Owners of real property desiring 4c <br/>
<a id="pl.42.6"></a><var>42.6</var>classification under this clause must submit an annual declaration to the assessor by <br/>
<a id="pl.42.7"></a><var>42.7</var>February 1 of the current assessment year, based on the property's relevant information for <br/>
<a id="pl.42.8"></a><var>42.8</var>the preceding assessment year. <br/>
<a id="pl.42.9"></a><var>42.9</var>    Class 4c property has a class rate of 1.5 percent of market value, except that (i) each <br/>
<a id="pl.42.10"></a><var>42.10</var>parcel of seasonal residential recreational property not used for commercial purposes has <br/>
<a id="pl.42.11"></a><var>42.11</var>the same class rates as class 4bb property, (ii) manufactured home parks assessed under <br/>
<a id="pl.42.12"></a><var>42.12</var>clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal <br/>
<a id="pl.42.13"></a><var>42.13</var>residential recreational property has a class rate of one percent for the first $500,000 of <br/>
<a id="pl.42.14"></a><var>42.14</var>market value, and 1.25 percent for the remaining market value, (iv) the market value of <br/>
<a id="pl.42.15"></a><var>42.15</var>property described in clause (4) has a class rate of one percent, (v) the market value of <br/>
<a id="pl.42.16"></a><var>42.16</var>property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi) <br/>
<a id="pl.42.17"></a><var>42.17</var>that portion of the market value of property in clause (9) qualifying for class 4c property <br/>
<a id="pl.42.18"></a><var>42.18</var>has a class rate of 1.25 percent. <br/>
<a id="pl.42.19"></a><var>42.19</var>    (e) Class 4d property is qualifying low-income rental housing certified to the assessor <br/>
<a id="pl.42.20"></a><var>42.20</var>by the Housing Finance Agency under section 
         <statute_ref>273.128, subdivision 3</statute_ref>. If only a portion <br/>
<a id="pl.42.21"></a><var>42.21</var>of the units in the building qualify as low-income rental housing units as certified under <br/>
<a id="pl.42.22"></a><var>42.22</var>section 
         <statute_ref>273.128, subdivision 3</statute_ref>, only the proportion of qualifying units to the total number <br/>
<a id="pl.42.23"></a><var>42.23</var>of units in the building qualify for class 4d. The remaining portion of the building shall be <br/>
<a id="pl.42.24"></a><var>42.24</var>classified by the assessor based upon its use. Class 4d also includes the same proportion of <br/>
<a id="pl.42.25"></a><var>42.25</var>land as the qualifying low-income rental housing units are to the total units in the building. <br/>
<a id="pl.42.26"></a><var>42.26</var>For all properties qualifying as class 4d, the market value determined by the assessor must <br/>
<a id="pl.42.27"></a><var>42.27</var>be based on the normal approach to value using normal unrestricted rents. <br/>
<a id="pl.42.28"></a><var>42.28</var>    Class 4d property has a class rate of 0.75 percent. <br/>
<a id="pl.42.29"></a><var>42.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.11.0"></a><a id="pl.42.30"></a><var>42.30</var>    Sec. 11. Minnesota Statutes 2008, section 273.13, subdivision 33, is amended to read:<br/>
<a id="pl.42.31"></a><var>42.31</var>    Subd. 33. <b>Classification of unimproved property.</b> (a) All real property that is not <br/>
<a id="pl.42.32"></a><var>42.32</var>improved with a structure must be classified according to its current use.<br/>
<a id="pl.42.33"></a><var>42.33</var>    (b) Except as provided in subdivision 23, paragraph (c) or (d), real property that is <br/>
<a id="pl.42.34"></a><var>42.34</var>not improved with a structure and for which there is no identifiable current use must be <br/>
<a id="pl.42.35"></a><var>42.35</var>classified according to its highest and best use permitted under the local zoning ordinance. <br/>
<a id="pl.43.1"></a><var>43.1</var>If the ordinance permits more than one use, the land must be classified according to the <br/>
<a id="pl.43.2"></a><var>43.2</var>highest and best use permitted under the ordinance. If no such ordinance exists, the <br/>
<a id="pl.43.3"></a><var>43.3</var>assessor shall consider the most likely potential use of the unimproved land based upon <br/>
<a id="pl.43.4"></a><var>43.4</var>the use made of surrounding land or land in proximity to the unimproved land.<br/>
<a id="pl.43.5"></a><var>43.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.12.0"></a><a id="pl.43.6"></a><var>43.6</var>    Sec. 12. Minnesota Statutes 2008, section 273.33, subdivision 2, is amended to read:<br/>
<a id="pl.43.7"></a><var>43.7</var>    Subd. 2.  <b>Listing and assessment by commissioner.</b> The personal property, <br/>
<a id="pl.43.8"></a><var>43.8</var>consisting of the pipeline system of mains, pipes, and equipment attached thereto, of <br/>
<a id="pl.43.9"></a><var>43.9</var>pipeline companies and others engaged in the operations or business of transporting natural <br/>
<a id="pl.43.10"></a><var>43.10</var>gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed with and <br/>
<a id="pl.43.11"></a><var>43.11</var>assessed by the commissioner of revenue and the values provided to the city or county <br/>
<a id="pl.43.12"></a><var>43.12</var>assessor by order. This subdivision shall not apply to the assessment of the products <br/>
<a id="pl.43.13"></a><var>43.13</var>transported through the pipelines nor to the lines of local commercial gas companies <br/>
<a id="pl.43.14"></a><var>43.14</var>engaged primarily in the business of distributing gas to consumers at retail nor to pipelines <br/>
<a id="pl.43.15"></a><var>43.15</var>used by the owner thereof to supply natural gas or other petroleum products exclusively <br/>
<a id="pl.43.16"></a><var>43.16</var>for such owner's own consumption and not for resale to others. If more than 85 percent <br/>
<a id="pl.43.17"></a><var>43.17</var>of the natural gas or other petroleum products actually transported over the pipeline is <br/>
<a id="pl.43.18"></a><var>43.18</var>used for the owner's own consumption and not for resale to others, then this subdivision <br/>
<a id="pl.43.19"></a><var>43.19</var>shall not apply; provided, however, that in that event, the pipeline shall be assessed in <br/>
<a id="pl.43.20"></a><var>43.20</var>proportion to the percentage of gas actually transported over such pipeline that is not used <br/>
<a id="pl.43.21"></a><var>43.21</var>for the owner's own consumption. On or before June 30 August 1, the commissioner shall <br/>
<a id="pl.43.22"></a><var>43.22</var>certify to the auditor of each county, the amount of such personal property assessment <br/>
<a id="pl.43.23"></a><var>43.23</var>against each company in each district in which such property is located. <br/>
<a id="pl.43.24"></a><var>43.24</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2009 and <br/>
<a id="pl.43.25"></a><var>43.25</var>thereafter.<br/>
<br/>
<a id="bill.4.13.0"></a><a id="pl.43.26"></a><var>43.26</var>    Sec. 13. Minnesota Statutes 2008, section 273.37, subdivision 2, is amended to read:<br/>
<a id="pl.43.27"></a><var>43.27</var>    Subd. 2.  <b>Listing and assessment by commissioner.</b> Transmission lines of less <br/>
<a id="pl.43.28"></a><var>43.28</var>than 69 kv, transmission lines of 69 kv and above located in an unorganized township, <br/>
<a id="pl.43.29"></a><var>43.29</var>and distribution lines, and equipment attached thereto, having a fixed situs outside the <br/>
<a id="pl.43.30"></a><var>43.30</var>corporate limits of cities except distribution lines taxed as provided in sections 
         <statute_ref>273.40 </statute_ref>and <br/>
<statute_ref><a id="pl.43.31"></a><var>43.31</var>273.41
         </statute_ref>, shall be listed with and assessed by the commissioner of revenue in the county <br/>
<a id="pl.43.32"></a><var>43.32</var>where situated and the values provided to the city or county assessor by order. The <br/>
<a id="pl.43.33"></a><var>43.33</var>commissioner shall assess such property at the percentage of market value fixed by law; <br/>
<a id="pl.44.1"></a><var>44.1</var>and, on or before June 30 August 1, shall certify to the auditor of each county in which <br/>
<a id="pl.44.2"></a><var>44.2</var>such property is located the amount of the assessment made against each company and <br/>
<a id="pl.44.3"></a><var>44.3</var>person owning such property. <br/>
<a id="pl.44.4"></a><var>44.4</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2009 and <br/>
<a id="pl.44.5"></a><var>44.5</var>thereafter.<br/>
<br/>
<a id="bill.4.14.0"></a><a id="pl.44.6"></a><var>44.6</var>    Sec. 14. Minnesota Statutes 2008, section 274.13, subdivision 2, is amended to read:<br/>
<a id="pl.44.7"></a><var>44.7</var>    Subd. 2. <b>Special board; delegated duties.</b> The board of equalization for any <br/>
<a id="pl.44.8"></a><var>44.8</var>county may appoint a special board of equalization and may delegate to it the powers and <br/>
<a id="pl.44.9"></a><var>44.9</var>duties in subdivision 1. The special board of equalization shall serve at the direction and <br/>
<a id="pl.44.10"></a><var>44.10</var>discretion of the appointing county board, subject to the restrictions imposed by law on <br/>
<a id="pl.44.11"></a><var>44.11</var>the appointing board. The appointing board may determine the number of members to be <br/>
<a id="pl.44.12"></a><var>44.12</var>appointed to the special board, the compensation and expenses to be paid, and the term of <br/>
<a id="pl.44.13"></a><var>44.13</var>office of each member. At least one member of the special board of equalization must be <br/>
<a id="pl.44.14"></a><var>44.14</var>an appraiser, realtor, or other person familiar with property valuations in the county. The <br/>
<a id="pl.44.15"></a><var>44.15</var>county auditor is a nonvoting member and serves as the recorder for the special board. <br/>
<a id="pl.44.16"></a><var>44.16</var>The special board is subject to the quorum requirements for county boards and the training <br/>
<a id="pl.44.17"></a><var>44.17</var>requirements for county boards in section 274.135, subdivision 2.<br/>
<a id="pl.44.18"></a><var>44.18</var><b>EFFECTIVE DATE.</b>The section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.15.0"></a><a id="pl.44.19"></a><var>44.19</var>    Sec. 15. Minnesota Statutes 2008, section 274.135, subdivision 3, is amended to read:<br/>
<a id="pl.44.20"></a><var>44.20</var>    Subd. 3.  <b>Proof of compliance; transfer of duties.</b> (a) Any county that <br/>
<a id="pl.44.21"></a><var>44.21</var>conducts county boards of appeal and equalization meetings must provide proof to the <br/>
<a id="pl.44.22"></a><var>44.22</var>commissioner by December 1, 2009, and each year thereafter, that it is in compliance <br/>
<a id="pl.44.23"></a><var>44.23</var>with the requirements of subdivision 2. Beginning in 2009, this notice must also verify <br/>
<a id="pl.44.24"></a><var>44.24</var>that there was a quorum of voting members at each meeting of the board of appeal and <br/>
<a id="pl.44.25"></a><var>44.25</var>equalization in the current year. A county that does not comply with these requirements <br/>
<a id="pl.44.26"></a><var>44.26</var>is deemed to have transferred its board of appeal and equalization powers to the special <br/>
<a id="pl.44.27"></a><var>44.27</var>board of equalization appointed pursuant to section 
         <statute_ref>274.13, subdivision 2</statute_ref>, beginning <br/>
<a id="pl.44.28"></a><var>44.28</var>with the following year's assessment and continuing unless the powers are reinstated <br/>
<a id="pl.44.29"></a><var>44.29</var>under paragraph (c). A county that does not comply with the requirements of subdivision <br/>
<a id="pl.44.30"></a><var>44.30</var>2 and has not appointed a special board of equalization shall appoint a special board of <br/>
<a id="pl.44.31"></a><var>44.31</var>equalization before the following year's assessment. <br/>
<a id="pl.44.32"></a><var>44.32</var>    (b) The county shall notify the taxpayers when the board of appeal and equalization <br/>
<a id="pl.44.33"></a><var>44.33</var>for a county has been transferred to the special board of equalization under this subdivision <br/>
<a id="pl.45.1"></a><var>45.1</var>and, prior to the meeting time of the special board of equalization, the county shall make <br/>
<a id="pl.45.2"></a><var>45.2</var>available to those taxpayers a procedure for a review of the assessments, including, but <br/>
<a id="pl.45.3"></a><var>45.3</var>not limited to, open book meetings. This alternate review process must take place in <br/>
<a id="pl.45.4"></a><var>45.4</var>April and May. <br/>
<a id="pl.45.5"></a><var>45.5</var>    (c) A county board whose powers are transferred to the special board of equalization <br/>
<a id="pl.45.6"></a><var>45.6</var>under this subdivision may be reinstated by resolution of the county board and upon proof <br/>
<a id="pl.45.7"></a><var>45.7</var>of compliance with the requirements of subdivision 2. The resolution and proofs must be <br/>
<a id="pl.45.8"></a><var>45.8</var>provided to the commissioner by December 1 in order to be effective for the following <br/>
<a id="pl.45.9"></a><var>45.9</var>year's assessment. <br/>
<a id="pl.45.10"></a><var>45.10</var>(d) If a person who was entitled to appeal to the county board of appeal and <br/>
<a id="pl.45.11"></a><var>45.11</var>equalization or to the county special board of equalization is not able to do so in a <br/>
<a id="pl.45.12"></a><var>45.12</var>particular year because the county board or special board did not meet the quorum and <br/>
<a id="pl.45.13"></a><var>45.13</var>training requirements in this section and section 274.13, or because the special board <br/>
<a id="pl.45.14"></a><var>45.14</var>was not appointed, that person may instead appeal to the commissioner of revenue, <br/>
<a id="pl.45.15"></a><var>45.15</var>provided that the appeal is received by the commissioner prior to August 1. The appeal <br/>
<a id="pl.45.16"></a><var>45.16</var>is not subject to either chapter 14 or section 270C.92. The commissioner must issue <br/>
<a id="pl.45.17"></a><var>45.17</var>an appropriate order to the county assessor in response to each timely appeal, either <br/>
<a id="pl.45.18"></a><var>45.18</var>upholding or changing the valuation or classification of the property. Prior to October 1 of <br/>
<a id="pl.45.19"></a><var>45.19</var>each year, the commissioner must charge and bill the county where the property is located <br/>
<a id="pl.45.20"></a><var>45.20</var>$500 for each tax parcel covered by an order issued under this paragraph in that year. <br/>
<a id="pl.45.21"></a><var>45.21</var>Amounts received by the commissioner under this paragraph must be deposited in the <br/>
<a id="pl.45.22"></a><var>45.22</var>state's general fund. If payment of a billed amount is not received by the commissioner <br/>
<a id="pl.45.23"></a><var>45.23</var>before December 1 of the year when billed, the commissioner must deduct that unpaid <br/>
<a id="pl.45.24"></a><var>45.24</var>amount from any state aid the commissioner would otherwise pay to the county under <br/>
<a id="pl.45.25"></a><var>45.25</var>chapter 477A in the next year. Late payments may either be returned to the county <br/>
<a id="pl.45.26"></a><var>45.26</var>uncashed and undeposited or may be accepted. If a late payment is accepted, the state aid <br/>
<a id="pl.45.27"></a><var>45.27</var>paid to the county under chapter 477A must be adjusted within 12 months to eliminate any <br/>
<a id="pl.45.28"></a><var>45.28</var>reduction that occurred because the payment was late. Amounts needed to make these <br/>
<a id="pl.45.29"></a><var>45.29</var>adjustments are included in the appropriation under section 477A.03, subdivision 2.<br/>
<a id="pl.45.30"></a><var>45.30</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2010 and <br/>
<a id="pl.45.31"></a><var>45.31</var>thereafter.<br/>
<br/>
<a id="bill.4.16.0"></a><a id="pl.45.32"></a><var>45.32</var>    Sec. 16. Minnesota Statutes 2008, section 274.14, is amended to read:<br/>
<a id="pl.45.33"></a><var>45.33</var><b>274.14 LENGTH OF SESSION; RECORD.</b><br/>
<a id="pl.46.1"></a><var>46.1</var>    The board may must meet on any after the second Friday in June on at least one <br/>
<a id="pl.46.2"></a><var>46.2</var>meeting day and may meet for up to ten consecutive meeting days in June, after the <br/>
<a id="pl.46.3"></a><var>46.3</var>second Friday in June. The actual meeting dates must be contained on the valuation <br/>
<a id="pl.46.4"></a><var>46.4</var>notices mailed to each property owner in the county as provided in section 
         <statute_ref>273.121</statute_ref>. For <br/>
<a id="pl.46.5"></a><var>46.5</var>this purpose, "meeting days" is defined as any day of the week excluding Sunday. At <br/>
<a id="pl.46.6"></a><var>46.6</var>the board's discretion, "meeting days" may include Saturday. No action taken by the <br/>
<a id="pl.46.7"></a><var>46.7</var>county board of review after June 30 is valid, except for corrections permitted in sections <br/>
<statute_ref><a id="pl.46.8"></a><var>46.8</var>273.01
         </statute_ref> and 
         <statute_ref>274.01</statute_ref>. The county auditor shall keep an accurate record of the proceedings <br/>
<a id="pl.46.9"></a><var>46.9</var>and orders of the board. The record must be published like other proceedings of county <br/>
<a id="pl.46.10"></a><var>46.10</var>commissioners. A copy of the published record must be sent to the commissioner of <br/>
<a id="pl.46.11"></a><var>46.11</var>revenue, with the abstract of assessment required by section 
         <statute_ref>274.16</statute_ref>.<br/>
<a id="pl.46.12"></a><var>46.12</var>    For counties that conduct either regular board of review meetings or open book <br/>
<a id="pl.46.13"></a><var>46.13</var>meetings, at least one of the meeting days must include a meeting that does not end <br/>
<a id="pl.46.14"></a><var>46.14</var>before 7:00 p.m. For counties that require taxpayer appointments for the board of review, <br/>
<a id="pl.46.15"></a><var>46.15</var>appointments must include some available times that extend until at least 7:00 p.m. The <br/>
<a id="pl.46.16"></a><var>46.16</var>county may have a Saturday meeting in lieu of, or in addition to, the extended meeting <br/>
<a id="pl.46.17"></a><var>46.17</var>times under this paragraph.<br/>
<a id="pl.46.18"></a><var>46.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.17.0"></a><a id="pl.46.19"></a><var>46.19</var>    Sec. 17. Minnesota Statutes 2008, section 274.175, is amended to read:<br/>
<a id="pl.46.20"></a><var>46.20</var><b>274.175 VALUES FINALIZED.</b><br/>
<a id="pl.46.21"></a><var>46.21</var>The assessments recorded by the county assessor and the county auditor under <br/>
<a id="pl.46.22"></a><var>46.22</var>sections 
         <statute_ref>273.124, subdivision 9</statute_ref>; 
         <statute_ref>274.16</statute_ref>; 
         <statute_ref>274.17</statute_ref>; or other law for real and personal <br/>
<a id="pl.46.23"></a><var>46.23</var>property are final on July 1 of the assessment year, except for property added to the <br/>
<a id="pl.46.24"></a><var>46.24</var>assessment rolls under section 
         <statute_ref>272.02, subdivision 38</statute_ref>, and assessments certified to the <br/>
<a id="pl.46.25"></a><var>46.25</var>auditor under sections 273.33, subdivision 2, and 273.37, subdivision 2, or deleted <br/>
<a id="pl.46.26"></a><var>46.26</var>because of tax forfeiture pursuant to chapter 281. No changes in value may be made <br/>
<a id="pl.46.27"></a><var>46.27</var>after July 1 of the assessment year, except for corrections permitted in sections 
         <statute_ref>273.01</statute_ref> <br/>
<a id="pl.46.28"></a><var>46.28</var>and 
         <statute_ref>274.01</statute_ref>, or assessments certified to the auditor under sections 273.33, subdivision 2, <br/>
<a id="pl.46.29"></a><var>46.29</var>and 273.37, subdivision 2.  <br/>
<a id="pl.46.30"></a><var>46.30</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2009 and <br/>
<a id="pl.46.31"></a><var>46.31</var>thereafter.<br/>
<br/>
<a id="bill.4.18.0"></a><a id="pl.47.1"></a><var>47.1</var>    Sec. 18. Minnesota Statutes 2008, section 290C.06, is amended to read:<br/>
<a id="pl.47.2"></a><var>47.2</var><b>290C.06 CALCULATION OF AVERAGE ESTIMATED MARKET VALUE; </b><br/>
<a id="pl.47.3"></a><var>47.3</var><b>TIMBERLAND</b><b> MANAGED FOREST LAND</b><b>.</b><br/>
<a id="pl.47.4"></a><var>47.4</var>The commissioner shall annually calculate a statewide average estimated market <br/>
<a id="pl.47.5"></a><var>47.5</var>value per acre for class 2b timberland 2c managed forest land under section 
         <statute_ref>273.13, <br/>
<a id="pl.47.6"></a><var>47.6</var>subdivision 23
         </statute_ref>, paragraph (b).<br/>
<a id="pl.47.7"></a><var>47.7</var><b>EFFECTIVE DATE.</b>This section is effective for calculations made in 2010 and <br/>
<a id="pl.47.8"></a><var>47.8</var>thereafter.<br/>
<br/>
<a id="bill.4.19.0"></a><a id="pl.47.9"></a><var>47.9</var>    Sec. 19. Minnesota Statutes 2008, section 290C.07, is amended to read:<br/>
<a id="pl.47.10"></a><var>47.10</var><b>290C.07 CALCULATION OF INCENTIVE PAYMENT.</b><br/>
<a id="pl.47.11"></a><var>47.11</var>    An approved claimant under the sustainable forest incentive program is eligible to <br/>
<a id="pl.47.12"></a><var>47.12</var>receive an annual payment. The payment shall equal the greater of: <br/>
<a id="pl.47.13"></a><var>47.13</var>    (1) the difference between the property tax that would be paid on the land using the <br/>
<a id="pl.47.14"></a><var>47.14</var>previous year's statewide average total township tax rate and the a class rate for class 2b <br/>
<a id="pl.47.15"></a><var>47.15</var>timberland under section 
<statute_ref>273.13, subdivision 23</statute_ref>, paragraph (b) of one percent, if the land <br/>
<a id="pl.47.16"></a><var>47.16</var>were valued at (i) the average statewide timberland managed forest land market value per <br/>
<a id="pl.47.17"></a><var>47.17</var>acre calculated under section 
         <statute_ref>290C.06</statute_ref>, and (ii) the average statewide timberland managed <br/>
<a id="pl.47.18"></a><var>47.18</var>forest land current use value per acre calculated under section 
         <statute_ref>290C.02, subdivision 5</statute_ref>; or <br/>
<a id="pl.47.19"></a><var>47.19</var>    (2) two-thirds of the property tax amount determined by using the previous <br/>
<a id="pl.47.20"></a><var>47.20</var>year's statewide average total township tax rate, the estimated market value per acre as <br/>
<a id="pl.47.21"></a><var>47.21</var>calculated in section 
         <statute_ref>290C.06</statute_ref>, and the a class rate for 2b timberland under section 
<statute_ref>273.13, <br/>
<a id="pl.47.22"></a><var>47.22</var>subdivision 23
</statute_ref>, paragraph (b) of one percent, provided that the payment shall be no less <br/>
<a id="pl.47.23"></a><var>47.23</var>than $7 per acre for each acre enrolled in the sustainable forest incentive program. <br/>
<a id="pl.47.24"></a><var>47.24</var><b>EFFECTIVE DATE.</b>This section is effective for calculations made in 2010 and <br/>
<a id="pl.47.25"></a><var>47.25</var>thereafter.<br/>
<br/>
<a id="bill.4.20.0"></a><a id="pl.47.26"></a><var>47.26</var>    Sec. 20. Minnesota Statutes 2008, section 477A.011, subdivision 34, is amended to <br/>
<a id="pl.47.27"></a><var>47.27</var>read:<br/>
<a id="pl.47.28"></a><var>47.28</var>    Subd. 34. <b>City revenue need.</b> (a) For a city with a population equal to or greater <br/>
<a id="pl.47.29"></a><var>47.29</var>than 2,500, "city revenue need" is the greater of 285 or the sum of (1) 5.0734098 times the <br/>
<a id="pl.47.30"></a><var>47.30</var>pre-1940 housing percentage; plus (2) 19.141678 times the population decline percentage; <br/>
<a id="pl.47.31"></a><var>47.31</var>plus (3) 2504.06334 times the road accidents factor; plus (4) 
         <statute_ref>355.0547</statute_ref>; minus (5) the <br/>
<a id="pl.47.32"></a><var>47.32</var>metropolitan area factor; minus (6) 49.10638 times the household size.<br/>
<a id="pl.48.1"></a><var>48.1</var>    (b) For a city with a population less than 2,500, "city revenue need" is the sum of <br/>
<a id="pl.48.2"></a><var>48.2</var>(1) 
         <statute_ref>2.387</statute_ref> times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial <br/>
<a id="pl.48.3"></a><var>48.3</var>industrial percentage; plus (3) 3.16042 times the population decline percentage; plus (4) <br/>
<statute_ref><a id="pl.48.4"></a><var>48.4</var>1.206
         </statute_ref> times the transformed population; minus (5) 
         <statute_ref>62.772</statute_ref>.<br/>
<a id="pl.48.5"></a><var>48.5</var>    (c) For a city with a population of 2,500 or more and a population in one of the most <br/>
<a id="pl.48.6"></a><var>48.6</var>recently available five years that was less than 2,500, "city revenue need" is the sum of (1) <br/>
<a id="pl.48.7"></a><var>48.7</var>its city revenue need calculated under paragraph (a) multiplied by its transition factor; <br/>
<a id="pl.48.8"></a><var>48.8</var>plus (2) its city revenue need calculated under the formula in paragraph (b) multiplied <br/>
<a id="pl.48.9"></a><var>48.9</var>by the difference between one and its transition factor. For purposes of this paragraph, a <br/>
<a id="pl.48.10"></a><var>48.10</var>city's "transition factor" is equal to 0.2 multiplied by the number of years that the city's <br/>
<a id="pl.48.11"></a><var>48.11</var>population estimate has been 2,500 or more. This provision only applies for aids payable <br/>
<a id="pl.48.12"></a><var>48.12</var>in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500. It <br/>
<a id="pl.48.13"></a><var>48.13</var>applies to any city for aids payable in 2009 and thereafter. The city revenue need under <br/>
<a id="pl.48.14"></a><var>48.14</var>this paragraph may not be less than 285.<br/>
<a id="pl.48.15"></a><var>48.15</var>    (d) The city revenue need cannot be less than zero.<br/>
<a id="pl.48.16"></a><var>48.16</var>    (e) For calendar year 2005 and subsequent years, the city revenue need for a city, <br/>
<a id="pl.48.17"></a><var>48.17</var>as determined in paragraphs (a) to (d), is multiplied by the ratio of the annual implicit <br/>
<a id="pl.48.18"></a><var>48.18</var>price deflator for government consumption expenditures and gross investment for state <br/>
<a id="pl.48.19"></a><var>48.19</var>and local governments as prepared by the United States Department of Commerce, for <br/>
<a id="pl.48.20"></a><var>48.20</var>the most recently available year to the 2003 implicit price deflator for state and local <br/>
<a id="pl.48.21"></a><var>48.21</var>government purchases.<br/>
<a id="pl.48.22"></a><var>48.22</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2009 and <br/>
<a id="pl.48.23"></a><var>48.23</var>thereafter.<br/>
<br/>
<a id="bill.4.21.0"></a><a id="pl.48.24"></a><var>48.24</var>    Sec. 21. Minnesota Statutes 2008, section 477A.011, subdivision 42, is amended to <br/>
<a id="pl.48.25"></a><var>48.25</var>read:<br/>
<a id="pl.48.26"></a><var>48.26</var>    Subd. 42. <b>City jobs base.</b> (a) "City jobs base" for a city with a population of 5,000 or <br/>
<a id="pl.48.27"></a><var>48.27</var>more is equal to the product of (1) $25.20, (2) the number of jobs per capita in the city, and <br/>
<a id="pl.48.28"></a><var>48.28</var>(3) its population. For cities with a population less than 5,000, the city jobs base is equal <br/>
<a id="pl.48.29"></a><var>48.29</var>to zero. For a city receiving aid under 
         <statute_ref>subdivision 36</statute_ref>, paragraph (l) (k), its city jobs base <br/>
<a id="pl.48.30"></a><var>48.30</var>is reduced by the lesser of 36 percent of the amount of aid received under that paragraph <br/>
<a id="pl.48.31"></a><var>48.31</var>or $1,000,000. No city's city jobs base may exceed $4,725,000 under this paragraph.<br/>
<a id="pl.48.32"></a><var>48.32</var>    (b) For calendar year 2010 and subsequent years, the city jobs base for a city, as <br/>
<a id="pl.48.33"></a><var>48.33</var>determined in paragraph (a), is multiplied by the ratio of the appropriation under section <br/>
<statute_ref><a id="pl.48.34"></a><var>48.34</var>477A.03, subdivision 2a
         </statute_ref>, for the year in which the aid is paid to the appropriation under <br/>
<a id="pl.48.35"></a><var>48.35</var>that section for aids payable in 2009.<br/>
<a id="pl.49.1"></a><var>49.1</var>    (c) For purposes of this subdivision, "jobs per capita in the city" means (1) the <br/>
<a id="pl.49.2"></a><var>49.2</var>average annual number of employees in the city based on the data from the Quarterly <br/>
<a id="pl.49.3"></a><var>49.3</var>Census of Employment and Wages, as reported by the Department of Employment and <br/>
<a id="pl.49.4"></a><var>49.4</var>Economic Development, for the most recent calendar year available as of May 1, 2008, <br/>
<a id="pl.49.5"></a><var>49.5</var>divided by (2) the city's population for the same calendar year as the employment data. <br/>
<a id="pl.49.6"></a><var>49.6</var>The commissioner of the Department of Employment and Economic Development shall <br/>
<a id="pl.49.7"></a><var>49.7</var>certify to the city the average annual number of employees for each city by June 1, 2008. <br/>
<a id="pl.49.8"></a><var>49.8</var>A city may challenge an estimate under this paragraph by filing its specific objection, <br/>
<a id="pl.49.9"></a><var>49.9</var>including the names of employers that it feels may have misreported data, in writing with <br/>
<a id="pl.49.10"></a><var>49.10</var>the commissioner by June 20, 2008. The commissioner shall make every reasonable effort <br/>
<a id="pl.49.11"></a><var>49.11</var>to address the specific objection and adjust the data as necessary. The commissioner shall <br/>
<a id="pl.49.12"></a><var>49.12</var>certify the estimates of the annual employment to the commissioner of revenue by July 15, <br/>
<a id="pl.49.13"></a><var>49.13</var>2008, including any estimates still under objection.<br/>
<a id="pl.49.14"></a><var>49.14</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2009 and <br/>
<a id="pl.49.15"></a><var>49.15</var>thereafter.<br/>
<br/>
<a id="bill.4.22.0"></a><a id="pl.49.16"></a><var>49.16</var>    Sec. 22. Minnesota Statutes 2008, section 477A.013, subdivision 8, is amended to read:<br/>
<a id="pl.49.17"></a><var>49.17</var>    Subd. 8.  <b>City formula aid.</b> (a) In calendar year 2009, the formula aid for a city <br/>
<a id="pl.49.18"></a><var>49.18</var>is equal to the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need <br/>
<a id="pl.49.19"></a><var>49.19</var>increase percentage multiplied by its unmet need. <br/>
<a id="pl.49.20"></a><var>49.20</var>    (b) In calendar year 2010 and subsequent years, the formula aid for a city is equal <br/>
<a id="pl.49.21"></a><var>49.21</var>to the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need increase <br/>
<a id="pl.49.22"></a><var>49.22</var>percentage multiplied by the average of its unmet need for the most recently available <br/>
<a id="pl.49.23"></a><var>49.23</var>two years.<br/>
<a id="pl.49.24"></a><var>49.24</var>No city may have a formula aid amount less than zero. The need increase percentage <br/>
<a id="pl.49.25"></a><var>49.25</var>must be the same for all cities. <br/>
<a id="pl.49.26"></a><var>49.26</var>    The applicable need increase percentage must be calculated by the Department of <br/>
<a id="pl.49.27"></a><var>49.27</var>Revenue so that the total of the aid under subdivision 9 equals the total amount available <br/>
<a id="pl.49.28"></a><var>49.28</var>for aid under section 
         <statute_ref>477A.03</statute_ref>. For aids payable in 2009 only, all data used in calculating <br/>
<a id="pl.49.29"></a><var>49.29</var>aid to cities under sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.013</statute_ref> will be based on the data available for <br/>
<a id="pl.49.30"></a><var>49.30</var>calculating aid to cities for aids payable in 2008. For aids payable in 2010 and thereafter, <br/>
<a id="pl.49.31"></a><var>49.31</var>data used in calculating aids to cities under sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.013</statute_ref> shall be the <br/>
<a id="pl.49.32"></a><var>49.32</var>most recently available data as of January 1 in the year in which the aid is calculated <br/>
<a id="pl.49.33"></a><var>49.33</var>except as provided in section 477A.011, subdivisions 3 and 35.<br/>
<a id="pl.50.1"></a><var>50.1</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2009 and <br/>
<a id="pl.50.2"></a><var>50.2</var>thereafter.<br/>
<br/>
<a id="bill.4.23.0"></a><a id="pl.50.3"></a><var>50.3</var>    Sec. 23. <b> REPEALER.</b><br/>
<a id="pl.50.4"></a><var>50.4</var>Minnesota Rules, parts 8115.0200; 8115.0300; 8115.0400; 8115.0500; 8115.0600; <br/>
<a id="pl.50.5"></a><var>50.5</var>8115.1000; 8115.1100; 8115.1200; 8115.1300; 8115.1400; 8115.1500; 8115.1600; <br/>
<a id="pl.50.6"></a><var>50.6</var>8115.1700; 8115.1800; 8115.1900; 8115.2000; 8115.2100; 8115.2200; 8115.2300; <br/>
<a id="pl.50.7"></a><var>50.7</var>8115.2400; 8115.2500; 8115.2600; 8115.2700; 8115.2800; 8115.2900; 8115.3000; <br/>
<a id="pl.50.8"></a><var>50.8</var>8115.4000; 8115.4100; 8115.4200; 8115.4300; 8115.4400; 8115.4500; 8115.4600; <br/>
<a id="pl.50.9"></a><var>50.9</var>8115.4700; 8115.4800; 8115.4900; 8115.5000; 8115.5100; 8115.5200; 8115.5300; <br/>
<a id="pl.50.10"></a><var>50.10</var>8115.5400; 8115.5500; 8115.5600; 8115.5700; 8115.5800; 8115.5900; 8115.6000; <br/>
<a id="pl.50.11"></a><var>50.11</var>8115.6100; 8115.6200; 8115.6300; 8115.6400; and 8115.9900; are repealed.<br/>
<a id="pl.50.12"></a><var>50.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="bill.5.1.0"></a><a id="pl.50.15"></a><var>50.15</var>    Section 1. Minnesota Statutes 2008, section 282.01, subdivision 1, is amended to read:<br/>
<a id="pl.50.16"></a><var>50.16</var>    Subdivision 1. <b>Classification as conservation or nonconservation.</b> It is the general <br/>
<a id="pl.50.17"></a><var>50.17</var>policy of this state to encourage the best use of tax-forfeited lands, recognizing that some <br/>
<a id="pl.50.18"></a><var>50.18</var>lands in public ownership should be retained and managed for public benefits while other <br/>
<a id="pl.50.19"></a><var>50.19</var>lands should be returned to private ownership (a) When acting on behalf of the state under <br/>
<a id="pl.50.20"></a><var>50.20</var>laws allowing the county board to classify and manage tax-forfeited lands held by the <br/>
<a id="pl.50.21"></a><var>50.21</var>state in trust for the local units as provided in section 281.25, the county board has the <br/>
<a id="pl.50.22"></a><var>50.22</var>discretion to decide that some lands in public ownership should be retained and managed <br/>
<a id="pl.50.23"></a><var>50.23</var>for public benefits while other lands should be returned to private ownership. Parcels <br/>
<a id="pl.50.24"></a><var>50.24</var>of land becoming the property of the state in trust under law declaring the forfeiture <br/>
<a id="pl.50.25"></a><var>50.25</var>of lands to the state for taxes must be classified by the county board of the county in <br/>
<a id="pl.50.26"></a><var>50.26</var>which the parcels lie as conservation or nonconservation. In making the classification the <br/>
<a id="pl.50.27"></a><var>50.27</var>board shall consider the present use of adjacent lands, the productivity of the soil, the <br/>
<a id="pl.50.28"></a><var>50.28</var>character of forest or other growth, accessibility of lands to established roads, schools, <br/>
<a id="pl.50.29"></a><var>50.29</var>and other public services, their peculiar suitability or desirability for particular uses, and <br/>
<a id="pl.50.30"></a><var>50.30</var>the suitability of the forest resources on the land for multiple use, and sustained yield <br/>
<a id="pl.50.31"></a><var>50.31</var>management. The classification, furthermore, must: (1) encourage and foster a mode of <br/>
<a id="pl.50.32"></a><var>50.32</var>land utilization that will facilitate the economical and adequate provision of transportation, <br/>
<a id="pl.50.33"></a><var>50.33</var>roads, water supply, drainage, sanitation, education, and recreation; (2) facilitate reduction <br/>
<a id="pl.51.1"></a><var>51.1</var>of governmental expenditures; (3) conserve and develop the natural resources; and (4) <br/>
<a id="pl.51.2"></a><var>51.2</var>protect and sustain important environmental and ecological systems; and (5) foster and <br/>
<a id="pl.51.3"></a><var>51.3</var>develop agriculture and other industries in the districts and places best suited to them.<br/>
<a id="pl.51.4"></a><var>51.4</var>In making the classification the county board may use information made available <br/>
<a id="pl.51.5"></a><var>51.5</var>by any office or department of the federal, state, or local governments, or by any other <br/>
<a id="pl.51.6"></a><var>51.6</var>person or agency possessing pertinent information at the time the classification is made. <br/>
<a id="pl.51.7"></a><var>51.7</var>The lands may be reclassified from time to time as the county board considers necessary <br/>
<a id="pl.51.8"></a><var>51.8</var>or desirable, except for conservation lands held by the state free from any trust in favor of <br/>
<a id="pl.51.9"></a><var>51.9</var>any taxing district.<br/>
<a id="pl.51.10"></a><var>51.10</var>If the lands are located within the boundaries of an organized town, with taxable <br/>
<a id="pl.51.11"></a><var>51.11</var>valuation in excess of $20,000, or incorporated municipality, the classification or <br/>
<a id="pl.51.12"></a><var>51.12</var>reclassification and sale must first be approved by the town board of the town or the <br/>
<a id="pl.51.13"></a><var>51.13</var>governing body of the municipality in which the lands are located. The town board of <br/>
<a id="pl.51.14"></a><var>51.14</var>the town or the governing body of the municipality is considered to have approved <br/>
<a id="pl.51.15"></a><var>51.15</var>the classification or reclassification and sale if the county board is not notified of the <br/>
<a id="pl.51.16"></a><var>51.16</var>disapproval of the classification or reclassification and sale within 60 days of the date the <br/>
<a id="pl.51.17"></a><var>51.17</var>request for approval was transmitted to the town board of the town or governing body <br/>
<a id="pl.51.18"></a><var>51.18</var>of the municipality. If the town board or governing body desires to acquire any parcel <br/>
<a id="pl.51.19"></a><var>51.19</var>lying in the town or municipality by procedures authorized in this section, it must file a <br/>
<a id="pl.51.20"></a><var>51.20</var>written application with the county board to withhold the parcel from public sale. The <br/>
<a id="pl.51.21"></a><var>51.21</var>application must be filed within 60 days of the request for classification or reclassification <br/>
<a id="pl.51.22"></a><var>51.22</var>and sale. The county board shall then withhold the parcel from public sale for six months. <br/>
<a id="pl.51.23"></a><var>51.23</var>A municipality or governmental subdivision shall pay maintenance costs incurred by <br/>
<a id="pl.51.24"></a><var>51.24</var>the county during the six-month period while the property is withheld from public sale, <br/>
<a id="pl.51.25"></a><var>51.25</var>provided the property is not offered for public sale after the six-month period. A clerical <br/>
<a id="pl.51.26"></a><var>51.26</var>error made by county officials does not serve to eliminate the request of the town board <br/>
<a id="pl.51.27"></a><var>51.27</var>or governing body if the board or governing body has forwarded the application to the <br/>
<a id="pl.51.28"></a><var>51.28</var>county auditor. If the town board or governing body of the municipality fails to submit an <br/>
<a id="pl.51.29"></a><var>51.29</var>application and a resolution of the board or governing body to acquire the property within <br/>
<a id="pl.51.30"></a><var>51.30</var>the withholding period, the county may offer the property for sale upon the expiration of <br/>
<a id="pl.51.31"></a><var>51.31</var>the withholding period.<br/>
<a id="pl.51.32"></a><var>51.32</var>(b) Whenever the county board deems it appropriate, the board may hold a meeting <br/>
<a id="pl.51.33"></a><var>51.33</var>for the purpose of reclassifying tax-forfeited land that has not been sold or released from <br/>
<a id="pl.51.34"></a><var>51.34</var>the trust. The criteria and procedures for reclassification are the same as those required for <br/>
<a id="pl.51.35"></a><var>51.35</var>an initial classification.<br/>
<a id="pl.52.1"></a><var>52.1</var>(c) Prior to meeting for the purpose of classifying or reclassifying tax-forfeited lands, <br/>
<a id="pl.52.2"></a><var>52.2</var>the county board must give notice of its intent to meet for that purpose as provided in this <br/>
<a id="pl.52.3"></a><var>52.3</var>paragraph. The notice must be given no more than 90 days and no less than 60 days before <br/>
<a id="pl.52.4"></a><var>52.4</var>the date of the meeting; provided that if the meeting is rescheduled, notice of the new <br/>
<a id="pl.52.5"></a><var>52.5</var>date, time, and location must be given at least 14 days before the date of the rescheduled <br/>
<a id="pl.52.6"></a><var>52.6</var>meeting. The notice must be posted on a Web site. The notice must also be mailed or <br/>
<a id="pl.52.7"></a><var>52.7</var>otherwise delivered to each person who has filed a request for notice of special meetings <br/>
<a id="pl.52.8"></a><var>52.8</var>with the public body, regardless of whether the matter is considered at a regular or special <br/>
<a id="pl.52.9"></a><var>52.9</var>meeting. The notice must be mailed or delivered at least 60 days before the date of the <br/>
<a id="pl.52.10"></a><var>52.10</var>meeting. If the meeting is rescheduled, notice of the new date, time, and location must be <br/>
<a id="pl.52.11"></a><var>52.11</var>mailed or delivered at least 14 days before the date of the rescheduled meeting. The public <br/>
<a id="pl.52.12"></a><var>52.12</var>body shall publish the notice once, at least 30 days before the meeting, in a newspaper of <br/>
<a id="pl.52.13"></a><var>52.13</var>general circulation within the area of the public body's authority. The board must also mail <br/>
<a id="pl.52.14"></a><var>52.14</var>a notice by electronic means to each person who requests notice of meetings dealing with <br/>
<a id="pl.52.15"></a><var>52.15</var>this subject and who agrees as provided in chapter 325L to accept notice that is mailed <br/>
<a id="pl.52.16"></a><var>52.16</var>by electronic means. Receipt of actual notice under the conditions specified in section <br/>
<a id="pl.52.17"></a><var>52.17</var>13D.04, subdivision 7, satisfies the notice requirements of this paragraph.<br/>
<a id="pl.52.18"></a><var>52.18</var>The board may classify or reclassify tax-forfeited lands at any regular or special <br/>
<a id="pl.52.19"></a><var>52.19</var>meeting, as those terms are defined in chapter 13D and may conduct only this business, or <br/>
<a id="pl.52.20"></a><var>52.20</var>this business as well as other business or activities at the meeting.<br/>
<a id="pl.52.21"></a><var>52.21</var>(d) At the meeting, the county board must allow any person or agency possessing <br/>
<a id="pl.52.22"></a><var>52.22</var>pertinent information to make or submit comments and recommendations about the <br/>
<a id="pl.52.23"></a><var>52.23</var>pending classification or reclassification. In addition, representatives of governmental <br/>
<a id="pl.52.24"></a><var>52.24</var>entities in attendance must be allowed to describe plans, ideas, or projects that may <br/>
<a id="pl.52.25"></a><var>52.25</var>involve use or acquisition of the property by that or another governmental entity. The <br/>
<a id="pl.52.26"></a><var>52.26</var>county board must solicit and consider any relevant components of current municipal or <br/>
<a id="pl.52.27"></a><var>52.27</var>metropolitan comprehensive land use plans that incorporate the area in which the land <br/>
<a id="pl.52.28"></a><var>52.28</var>is located. After allowing testimony, the board may classify, reclassify, or delay taking <br/>
<a id="pl.52.29"></a><var>52.29</var>action on any parcel or parcels. In order for a state agency or a governmental subdivision <br/>
<a id="pl.52.30"></a><var>52.30</var>of the state to preserve its right to request a purchase or other acquisition of a forfeited <br/>
<a id="pl.52.31"></a><var>52.31</var>parcel, it may, at any time following forfeiture, file a written request to withhold the parcel <br/>
<a id="pl.52.32"></a><var>52.32</var>from sale or lease to others under the provisions of subdivision 1a.<br/>
<a id="pl.52.33"></a><var>52.33</var>(e) When classifying, reclassifying, appraising, and selling lands under this chapter, <br/>
<a id="pl.52.34"></a><var>52.34</var>the county board may designate the tracts as assessed and acquired, or may by resolution <br/>
<a id="pl.52.35"></a><var>52.35</var>provide for the subdivision of the tracts into smaller units or for the grouping of several <br/>
<a id="pl.52.36"></a><var>52.36</var>tracts into one tract when the subdivision or grouping is deemed advantageous for <br/>
<a id="pl.53.1"></a><var>53.1</var>conservation or sale purposes. This paragraph does not authorize the county board to <br/>
<a id="pl.53.2"></a><var>53.2</var>subdivide a parcel or tract of tax-forfeited land that, as assessed and acquired, is withheld <br/>
<a id="pl.53.3"></a><var>53.3</var>from sale under section 282.018, subdivision 1.<br/>
<a id="pl.53.4"></a><var>53.4</var>(f) A county board may by resolution elect to use the classification and <br/>
<a id="pl.53.5"></a><var>53.5</var>reclassification procedures provided in paragraphs (g), (h), and (i), instead of the <br/>
<a id="pl.53.6"></a><var>53.6</var>procedures provided in paragraphs (b), (c), and (d). Once an election is made under this <br/>
<a id="pl.53.7"></a><var>53.7</var>paragraph, it is effective for a minimum of five years.<br/>
<a id="pl.53.8"></a><var>53.8</var>(g) The classification or reclassification of tax-forfeited land that has not been sold or <br/>
<a id="pl.53.9"></a><var>53.9</var>released from the trust may be made by the county board using information made available <br/>
<a id="pl.53.10"></a><var>53.10</var>to it by any office or department of the federal, state, or local governments, or by any other <br/>
<a id="pl.53.11"></a><var>53.11</var>person or agency possessing pertinent information at the time the classification is made.<br/>
<a id="pl.53.12"></a><var>53.12</var>(h) If the lands are located within the boundaries of an organized town or <br/>
<a id="pl.53.13"></a><var>53.13</var>incorporated municipality, a classification or reclassification and sale must first be <br/>
<a id="pl.53.14"></a><var>53.14</var>approved by the town board of the town or the governing body of the municipality in <br/>
<a id="pl.53.15"></a><var>53.15</var>which the lands are located. The town board of the town or the governing body of the <br/>
<a id="pl.53.16"></a><var>53.16</var>municipality is considered to have approved the classification or reclassification and sale <br/>
<a id="pl.53.17"></a><var>53.17</var>if the county board is not notified of the disapproval of the classification or reclassification <br/>
<a id="pl.53.18"></a><var>53.18</var>and sale within 60 days of the date the request for approval was transmitted to the town <br/>
<a id="pl.53.19"></a><var>53.19</var>board of the town or governing body of the municipality. If the town board or governing <br/>
<a id="pl.53.20"></a><var>53.20</var>body disapproves of the classification or reclassification and sale, the county board must <br/>
<a id="pl.53.21"></a><var>53.21</var>follow the procedures in paragraphs (c) and (d), with regard to the parcel, and must <br/>
<a id="pl.53.22"></a><var>53.22</var>additionally cause to be published in a newspaper a notice of the date, time, location, and <br/>
<a id="pl.53.23"></a><var>53.23</var>purpose of the required meeting.<br/>
<a id="pl.53.24"></a><var>53.24</var>(i) If a town board or a governing body of a municipality desires to acquire any <br/>
<a id="pl.53.25"></a><var>53.25</var>parcel lying in the town or municipality by procedures authorized in this section, it may <br/>
<a id="pl.53.26"></a><var>53.26</var>file a written request under subdivision 1a, paragraph (a).<br/>
<a id="pl.53.27"></a><var>53.27</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.53.28"></a><var>53.28</var>    Sec. 2. Minnesota Statutes 2008, section 282.01, subdivision 1a, is amended to read:<br/>
<a id="pl.53.29"></a><var>53.29</var>    Subd. 1a. <b>Conveyance</b><b>; generally</b><b> to public entities</b><b>.</b> (a) Upon written request <br/>
<a id="pl.53.30"></a><var>53.30</var>from a state agency or a governmental subdivision of the state, a parcel of unsold <br/>
<a id="pl.53.31"></a><var>53.31</var>tax-forfeited land must be withheld from sale or lease to others for a maximum of six <br/>
<a id="pl.53.32"></a><var>53.32</var>months. The request must be submitted to the county auditor. Upon receipt, the county <br/>
<a id="pl.53.33"></a><var>53.33</var>auditor must withhold the parcel from sale or lease to any other party for six months, and <br/>
<a id="pl.53.34"></a><var>53.34</var>must confirm the starting date of the six-month withholding period to the requesting <br/>
<a id="pl.53.35"></a><var>53.35</var>agency or subdivision. If the request is from a governmental subdivision of the state, the <br/>
<a id="pl.54.1"></a><var>54.1</var>governmental subdivision must pay the maintenance costs incurred by the county during <br/>
<a id="pl.54.2"></a><var>54.2</var>the period the parcel is withheld. The county board may approve a sale or conveyance to <br/>
<a id="pl.54.3"></a><var>54.3</var>the requesting party during the withholding period. A conveyance of the property to the <br/>
<a id="pl.54.4"></a><var>54.4</var>requesting party terminates the withholding period.<br/>
<a id="pl.54.5"></a><var>54.5</var>A governmental subdivision of the state must not make, and a county auditor must <br/>
<a id="pl.54.6"></a><var>54.6</var>not act upon, a second request to withhold a parcel from sale or lease within 18 months <br/>
<a id="pl.54.7"></a><var>54.7</var>of a previous request for that parcel. A county may reject a request made under this <br/>
<a id="pl.54.8"></a><var>54.8</var>paragraph if the request is made more than 30 days after the county has given notice to the <br/>
<a id="pl.54.9"></a><var>54.9</var>requesting state agency or governmental subdivision of the state that the county intends to <br/>
<a id="pl.54.10"></a><var>54.10</var>sell or otherwise dispose of the property.<br/>
<a id="pl.54.11"></a><var>54.11</var>(b) Nonconservation tax-forfeited lands may be sold by the county board, for <br/>
<a id="pl.54.12"></a><var>54.12</var>their market value as determined by the county board, to an organized or incorporated <br/>
<a id="pl.54.13"></a><var>54.13</var>governmental subdivision of the state for any public purpose for which the subdivision is <br/>
<a id="pl.54.14"></a><var>54.14</var>authorized to acquire property or. When the term "market value" is used in this section, it <br/>
<a id="pl.54.15"></a><var>54.15</var>means an estimate of the full and actual market value of the parcel as determined by the <br/>
<a id="pl.54.16"></a><var>54.16</var>county board, but in making this determination, the board and the persons employed by or <br/>
<a id="pl.54.17"></a><var>54.17</var>under contract with the board in order to perform, conduct, or assist in the determination, <br/>
<a id="pl.54.18"></a><var>54.18</var>are exempt from the licensure requirements of chapter 82B.<br/>
<a id="pl.54.19"></a><var>54.19</var>(c) Nonconservation tax-forfeited lands may be released from the trust in favor of the <br/>
<a id="pl.54.20"></a><var>54.20</var>taxing districts on application of to the county board by a state agency for an authorized <br/>
<a id="pl.54.21"></a><var>54.21</var>use at not less than their market value as determined by the county board.<br/>
<a id="pl.54.22"></a><var>54.22</var>(d) Nonconservation tax-forfeited lands may be sold by the county board to an <br/>
<a id="pl.54.23"></a><var>54.23</var>organized or incorporated governmental subdivision of the state or state agency for less <br/>
<a id="pl.54.24"></a><var>54.24</var>than their market value if:<br/>
<a id="pl.54.25"></a><var>54.25</var>(1) the county board determines that a sale at a reduced price is in the public interest <br/>
<a id="pl.54.26"></a><var>54.26</var>because a reduced price is necessary to provide an incentive to correct the blighted <br/>
<a id="pl.54.27"></a><var>54.27</var>conditions that make the lands undesirable in the open market, or the reduced price will <br/>
<a id="pl.54.28"></a><var>54.28</var>lead to the development of affordable housing; and<br/>
<a id="pl.54.29"></a><var>54.29</var>(2) the governmental subdivision or state agency has documented its specific plans <br/>
<a id="pl.54.30"></a><var>54.30</var>for correcting the blighted conditions or developing affordable housing, and the specific <br/>
<a id="pl.54.31"></a><var>54.31</var>law or laws that empower it to acquire real property in furtherance of the plans.<br/>
<a id="pl.54.32"></a><var>54.32</var>If the sale under this paragraph is to a governmental subdivision of the state, the <br/>
<a id="pl.54.33"></a><var>54.33</var>commissioner of revenue must convey the property on behalf of the state by quit claim <br/>
<a id="pl.54.34"></a><var>54.34</var>deed. If the sale under this paragraph is to a state agency, the commissioner must issue a <br/>
<a id="pl.54.35"></a><var>54.35</var>conveyance document that releases the property from the trust in favor of the taxing <br/>
<a id="pl.54.36"></a><var>54.36</var>districts.<br/>
<a id="pl.55.1"></a><var>55.1</var>(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts <br/>
<a id="pl.55.2"></a><var>55.2</var>may be conveyed by the commissioner of revenue may convey by deed in the name <br/>
<a id="pl.55.3"></a><var>55.3</var>of the state a tract of tax-forfeited land held in trust in favor of the taxing districts to a <br/>
<a id="pl.55.4"></a><var>55.4</var>governmental subdivision for an authorized public use, if an application is submitted to <br/>
<a id="pl.55.5"></a><var>55.5</var>the commissioner which includes a statement of facts as to the use to be made of the tract <br/>
<a id="pl.55.6"></a><var>55.6</var>and the need therefor and the favorable recommendation of the county board. For the <br/>
<a id="pl.55.7"></a><var>55.7</var>purposes of this paragraph, "authorized public use" means a use that allows an indefinite <br/>
<a id="pl.55.8"></a><var>55.8</var>segment of the public to physically use and enjoy the property in numbers appropriate <br/>
<a id="pl.55.9"></a><var>55.9</var>to its size and use, or is for a public service facility. Authorized public uses as defined <br/>
<a id="pl.55.10"></a><var>55.10</var>in this paragraph are limited to:<br/>
<a id="pl.55.11"></a><var>55.11</var>(1) a road, or right-of-way for a road;<br/>
<a id="pl.55.12"></a><var>55.12</var>(2) a park that is both available to, and accessible by, the public that contains <br/>
<a id="pl.55.13"></a><var>55.13</var>amenities such as campgrounds, playgrounds, athletic fields, trails, or shelters;<br/>
<a id="pl.55.14"></a><var>55.14</var>(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along <br/>
<a id="pl.55.15"></a><var>55.15</var>with a reasonable amount of surrounding land maintained in its natural state;<br/>
<a id="pl.55.16"></a><var>55.16</var>(4) transit ways for buses or commuter trains;<br/>
<a id="pl.55.17"></a><var>55.17</var>(5) public beaches or boat launches;<br/>
<a id="pl.55.18"></a><var>55.18</var>(6) public parking;<br/>
<a id="pl.55.19"></a><var>55.19</var>(7) civic recreation or conference facilities; and<br/>
<a id="pl.55.20"></a><var>55.20</var>(8) public service facilities such as fire halls, police stations, lift stations, water <br/>
<a id="pl.55.21"></a><var>55.21</var>towers, sanitation facilities, water treatment facilities, and administrative offices.<br/>
<a id="pl.55.22"></a><var>55.22</var>(f) The commissioner of revenue shall convey a parcel of nonconservation <br/>
<a id="pl.55.23"></a><var>55.23</var>tax-forfeited land to a local governmental subdivision of the state by quit claim deed <br/>
<a id="pl.55.24"></a><var>55.24</var>on behalf of the state upon the favorable recommendation of the county board if the <br/>
<a id="pl.55.25"></a><var>55.25</var>governmental subdivision has certified to the board that prior to forfeiture the subdivision <br/>
<a id="pl.55.26"></a><var>55.26</var>was entitled to the parcel under a written development agreement or instrument, but <br/>
<a id="pl.55.27"></a><var>55.27</var>the conveyance failed to occur prior to forfeiture. No compensation or consideration is <br/>
<a id="pl.55.28"></a><var>55.28</var>required for, and no conditions attach to, the conveyance.<br/>
<a id="pl.55.29"></a><var>55.29</var>    (g) The commissioner of revenue shall convey a parcel of nonconservation <br/>
<a id="pl.55.30"></a><var>55.30</var>tax-forfeited land to the association of a common interest community by quit claim deed <br/>
<a id="pl.55.31"></a><var>55.31</var>upon the favorable recommendation of the county board if the association certifies to the <br/>
<a id="pl.55.32"></a><var>55.32</var>board that prior to forfeiture the association was entitled to the parcel under a written <br/>
<a id="pl.55.33"></a><var>55.33</var>agreement, but the conveyance failed to occur prior to forfeiture. No compensation or <br/>
<a id="pl.55.34"></a><var>55.34</var>consideration is required for, and no conditions attach to, the conveyance.<br/>
<a id="pl.55.35"></a><var>55.35</var>(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the <br/>
<a id="pl.55.36"></a><var>55.36</var>state for less than its market value for either: (1) creation or preservation of wetlands; <br/>
<a id="pl.56.1"></a><var>56.1</var>(2) drainage or storage of storm water under a storm water management plan; or (3) <br/>
<a id="pl.56.2"></a><var>56.2</var>preservation, or restoration and preservation, of the land in its natural state. The deed must <br/>
<a id="pl.56.3"></a><var>56.3</var>contain a restrictive covenant limiting the use of the land to one of these purposes for <br/>
<a id="pl.56.4"></a><var>56.4</var>30 years or until the property is reconveyed back to the state in trust. At any time, the <br/>
<a id="pl.56.5"></a><var>56.5</var>governmental subdivision may reconvey the property to the state in trust for the taxing <br/>
<a id="pl.56.6"></a><var>56.6</var>districts. The deed of reconveyance is subject to approval by the commissioner of revenue. <br/>
<a id="pl.56.7"></a><var>56.7</var>No part of a purchase price determined under this paragraph shall be refunded upon a <br/>
<a id="pl.56.8"></a><var>56.8</var>reconveyance, but the amount paid for a conveyance under this paragraph may be taken <br/>
<a id="pl.56.9"></a><var>56.9</var>into account by the county board when setting the terms of a future sale of the same <br/>
<a id="pl.56.10"></a><var>56.10</var>property to the same governmental subdivision under paragraph (b) or (d). If the lands <br/>
<a id="pl.56.11"></a><var>56.11</var>are unplatted and located outside of an incorporated municipality and the commissioner <br/>
<a id="pl.56.12"></a><var>56.12</var>of natural resources determines there is a mineral use potential, the sale is subject to the <br/>
<a id="pl.56.13"></a><var>56.13</var>approval of the commissioner of natural resources.<br/>
<a id="pl.56.14"></a><var>56.14</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.56.15"></a><var>56.15</var>    Sec. 3. Minnesota Statutes 2008, section 282.01, subdivision 1b, is amended to read:<br/>
<a id="pl.56.16"></a><var>56.16</var>    Subd. 1b.  <b>Conveyance; targeted neighborhood lands.</b> (a) Notwithstanding <br/>
<a id="pl.56.17"></a><var>56.17</var>subdivision 1a, in the case of tax-forfeited lands located in a targeted neighborhood, as <br/>
<a id="pl.56.18"></a><var>56.18</var>defined in section 
<statute_ref>469.201, subdivision 10</statute_ref> in a city of the first class, the commissioner of <br/>
<a id="pl.56.19"></a><var>56.19</var>revenue shall convey by quit claim deed in the name of the state any tract of tax-forfeited <br/>
<a id="pl.56.20"></a><var>56.20</var>land held in trust in favor of the taxing districts, to a political subdivision of the state that <br/>
<a id="pl.56.21"></a><var>56.21</var>submits an application to the commissioner of revenue and the favorable recommendation <br/>
<a id="pl.56.22"></a><var>56.22</var>of the county board. For purposes of this subdivision, the term "targeted neighborhood" <br/>
<a id="pl.56.23"></a><var>56.23</var>has the meaning given in section 469.201, subdivision 10, except that the land must be <br/>
<a id="pl.56.24"></a><var>56.24</var>located within a first class city.<br/>
<a id="pl.56.25"></a><var>56.25</var>(b) The application under paragraph (a) must include a statement of facts as to the <br/>
<a id="pl.56.26"></a><var>56.26</var>use to be made of the tract, the need therefor, and a resolution, adopted by the governing <br/>
<a id="pl.56.27"></a><var>56.27</var>body of the political subdivision, finding that the conveyance of a tract of tax-forfeited <br/>
<a id="pl.56.28"></a><var>56.28</var>land to the political subdivision is necessary to provide for the redevelopment of land as <br/>
<a id="pl.56.29"></a><var>56.29</var>productive taxable property. Deeds of conveyance issued under paragraph (a) are not <br/>
<a id="pl.56.30"></a><var>56.30</var>conditioned on continued use of the property for the use stated in the application.<br/>
<a id="pl.56.31"></a><var>56.31</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.56.32"></a><var>56.32</var>    Sec. 4. Minnesota Statutes 2008, section 282.01, subdivision 1c, is amended to read:<br/>
<a id="pl.57.1"></a><var>57.1</var>    Subd. 1c. <b>Deed of conveyance; form; approvals.</b> The deed of conveyance for <br/>
<a id="pl.57.2"></a><var>57.2</var>property conveyed for a an authorized public use under the authorities in subdivision <br/>
<a id="pl.57.3"></a><var>57.3</var>1a, paragraph (e), must be on a form approved by the attorney general and must be <br/>
<a id="pl.57.4"></a><var>57.4</var>conditioned on continued use for the purpose stated in the application as provided in this <br/>
<a id="pl.57.5"></a><var>57.5</var>section. These deeds are conditional use deeds that convey a defeasible estate. Reversion <br/>
<a id="pl.57.6"></a><var>57.6</var>of the estate occurs by operation of law and without the requirement for any affirmative <br/>
<a id="pl.57.7"></a><var>57.7</var>act by or on behalf of the state when there is a failure to put the property to the approved <br/>
<a id="pl.57.8"></a><var>57.8</var>authorized public use for which it was conveyed, or an abandonment of that use, except as <br/>
<a id="pl.57.9"></a><var>57.9</var>provided in subdivision 1d.<br/>
<a id="pl.57.10"></a><var>57.10</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.57.11"></a><var>57.11</var>    Sec. 5. Minnesota Statutes 2008, section 282.01, subdivision 1d, is amended to read:<br/>
<a id="pl.57.12"></a><var>57.12</var>    Subd. 1d. <b>Reverter for failure to use; conveyance to state.</b> (a) If after three years <br/>
<a id="pl.57.13"></a><var>57.13</var>from the date of the conveyance a governmental subdivision to which tax-forfeited land <br/>
<a id="pl.57.14"></a><var>57.14</var>has been conveyed for a specified an authorized public use as provided in this section <br/>
<a id="pl.57.15"></a><var>57.15</var>subdivision 1a, paragraph (e), fails to put the land to that use, or abandons that use, the <br/>
<a id="pl.57.16"></a><var>57.16</var>governing body of the subdivision may, must: (1) with the approval of the county board, <br/>
<a id="pl.57.17"></a><var>57.17</var>purchase the property for an authorized public purpose at the present appraised market <br/>
<a id="pl.57.18"></a><var>57.18</var>value as determined by the county board. In that case, the commissioner of revenue <br/>
<a id="pl.57.19"></a><var>57.19</var>shall, upon proper written application approved by the county board, issue an appropriate <br/>
<a id="pl.57.20"></a><var>57.20</var>deed to the subdivisions free of a use restriction and reverter. The governing body may <br/>
<a id="pl.57.21"></a><var>57.21</var>also, or (2) authorize the proper officers to convey the land, or the part of the land not <br/>
<a id="pl.57.22"></a><var>57.22</var>required for an authorized public use, to the state of Minnesota. in trust for the taxing <br/>
<a id="pl.57.23"></a><var>57.23</var>districts. If the governing body purchases the property under clause (1), the commissioner <br/>
<a id="pl.57.24"></a><var>57.24</var>of revenue shall, upon property application submitted by the county auditor, convey <br/>
<a id="pl.57.25"></a><var>57.25</var>the property on behalf of the state by quit claim deed to the subdivision free of a use <br/>
<a id="pl.57.26"></a><var>57.26</var>restriction and the possibility of reversion or defeasement. If the governing body decides <br/>
<a id="pl.57.27"></a><var>57.27</var>to reconvey the property to the state under clause (2), the officers shall execute a deed of <br/>
<a id="pl.57.28"></a><var>57.28</var>conveyance immediately. The conveyance is subject to the approval of the commissioner <br/>
<a id="pl.57.29"></a><var>57.29</var>and its form must be approved by the attorney general. A sale, lease, transfer, or other <br/>
<a id="pl.57.30"></a><var>57.30</var>conveyance of tax-forfeited lands by a housing and redevelopment authority, a port <br/>
<a id="pl.57.31"></a><var>57.31</var>authority, an economic development authority, or a city as authorized by chapter 469 is not <br/>
<a id="pl.57.32"></a><var>57.32</var>an abandonment of use and the lands shall not be reconveyed to the state nor shall they <br/>
<a id="pl.57.33"></a><var>57.33</var>revert to the state. A certificate made by a housing and redevelopment authority, a port <br/>
<a id="pl.57.34"></a><var>57.34</var>authority, an economic development authority, or a city referring to a conveyance by it <br/>
<a id="pl.57.35"></a><var>57.35</var>and stating that the conveyance has been made as authorized by chapter 469 may be filed <br/>
<a id="pl.58.1"></a><var>58.1</var>with the county recorder or registrar of titles, and the rights of reverter in favor of the state <br/>
<a id="pl.58.2"></a><var>58.2</var>provided by subdivision 1e will then terminate. No vote of the people is required for the <br/>
<a id="pl.58.3"></a><var>58.3</var>conveyance. For the purposes of this subdivision, there is no failure to put the land to the <br/>
<a id="pl.58.4"></a><var>58.4</var>authorized public use and no abandonment of that use if a formal plan of the governmental <br/>
<a id="pl.58.5"></a><var>58.5</var>subdivision, including, but not limited to, a comprehensive plan or land use plan that <br/>
<a id="pl.58.6"></a><var>58.6</var>shows an intended future use of the land for the authorized public use.<br/>
<a id="pl.58.7"></a><var>58.7</var>(b) Property held by a governmental subdivision of the state under a conditional use <br/>
<a id="pl.58.8"></a><var>58.8</var>deed executed by the commissioner of revenue after January 1, 2006, may be acquired <br/>
<a id="pl.58.9"></a><var>58.9</var>by that governmental subdivision after 15 years from the date of the conveyance if <br/>
<a id="pl.58.10"></a><var>58.10</var>the commissioner determines upon written application from the subdivision that the <br/>
<a id="pl.58.11"></a><var>58.11</var>subdivision has in fact put the property to the authorized public use for which it was <br/>
<a id="pl.58.12"></a><var>58.12</var>conveyed, and the subdivision has made a finding that it has no current plans to change <br/>
<a id="pl.58.13"></a><var>58.13</var>the use of the lands. Prior to conveying the property, the commissioner shall inquire <br/>
<a id="pl.58.14"></a><var>58.14</var>whether the county board where the land is located objects to a conveyance of the property <br/>
<a id="pl.58.15"></a><var>58.15</var>to the subdivision without conditions and without further act by or obligation of the <br/>
<a id="pl.58.16"></a><var>58.16</var>subdivision. If the county does not object within 60 days, and the commissioner makes <br/>
<a id="pl.58.17"></a><var>58.17</var>a favorable determination, the commissioner shall issue a quit claim deed on behalf of <br/>
<a id="pl.58.18"></a><var>58.18</var>the state unconditionally conveying the property to the governmental subdivision. For <br/>
<a id="pl.58.19"></a><var>58.19</var>purposes of this paragraph, demonstration of an intended future use for the authorized <br/>
<a id="pl.58.20"></a><var>58.20</var>public use in a formal plan of the governmental subdivision does not constitute use for <br/>
<a id="pl.58.21"></a><var>58.21</var>that authorized public use.<br/>
<a id="pl.58.22"></a><var>58.22</var>(c) Property held by a governmental subdivision of the state under a conditional use <br/>
<a id="pl.58.23"></a><var>58.23</var>deed executed by the commissioner of revenue before January 1, 2006, is released from <br/>
<a id="pl.58.24"></a><var>58.24</var>the use restriction and possibility of reversion on January 1, 2021, if the county board <br/>
<a id="pl.58.25"></a><var>58.25</var>records a document describing the land and citing this paragraph. The county board may <br/>
<a id="pl.58.26"></a><var>58.26</var>authorize the county treasurer to deduct the amount of the recording fees from future <br/>
<a id="pl.58.27"></a><var>58.27</var>settlements of property taxes to the subdivision.<br/>
<a id="pl.58.28"></a><var>58.28</var>(d) All property held by a governmental subdivision of the state under a conditional <br/>
<a id="pl.58.29"></a><var>58.29</var>use deed executed by the commissioner of revenue is released from the use restriction <br/>
<a id="pl.58.30"></a><var>58.30</var>and possibility of reversion on the later of: (1) January 1, 2015; (2) 40 years after the <br/>
<a id="pl.58.31"></a><var>58.31</var>date the deed was executed; or (3) upon final resolution of an appeal to district court <br/>
<a id="pl.58.32"></a><var>58.32</var>under subdivision 1e if the appeal was commenced prior to January 1, 2015. Upon the <br/>
<a id="pl.58.33"></a><var>58.33</var>occurrence of clause (1), (2), or (3), the governmental subdivision may record a certificate <br/>
<a id="pl.58.34"></a><var>58.34</var>referring to the land, the original conveyance, and to the release under this paragraph.<br/>
<a id="pl.58.35"></a><var>58.35</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.5.6.0"></a><a id="pl.59.1"></a><var>59.1</var>    Sec. 6. Minnesota Statutes 2008, section 282.01, is amended by adding a subdivision <br/>
<a id="pl.59.2"></a><var>59.2</var>to read:<br/>
<a id="pl.59.3"></a><var>59.3</var>    Subd. 1g. <b>Conditional use deed fees.</b> (a) A governmental subdivision of the state <br/>
<a id="pl.59.4"></a><var>59.4</var>applying for a conditional use deed under subdivision 1a, paragraph (e), must submit a fee <br/>
<a id="pl.59.5"></a><var>59.5</var>of $250 to the commissioner of revenue along with the application. If the application is <br/>
<a id="pl.59.6"></a><var>59.6</var>denied, the commissioner shall refund $150 of the application fee.<br/>
<a id="pl.59.7"></a><var>59.7</var>(b) The proceeds from the fees must be deposited in a Department of Revenue <br/>
<a id="pl.59.8"></a><var>59.8</var>conditional use deed revolving fund. The sums deposited into the revolving fund are <br/>
<a id="pl.59.9"></a><var>59.9</var>appropriated to the commissioner of revenue for the purpose of making the refunds <br/>
<a id="pl.59.10"></a><var>59.10</var>described in this subdivision, and administering conditional use deed laws.<br/>
<a id="pl.59.11"></a><var>59.11</var><b>EFFECTIVE DATE.</b>This section is effective for applications received by the <br/>
<a id="pl.59.12"></a><var>59.12</var>commissioner after June 30, 2009.<br/>
<br/>
<a id="bill.5.7.0"></a><a id="pl.59.13"></a><var>59.13</var>    Sec. 7. Minnesota Statutes 2008, section 282.01, subdivision 2, is amended to read:<br/>
<a id="pl.59.14"></a><var>59.14</var>    Subd. 2. <b>Conservation lands; county board supervision.</b> (a) Lands classified as <br/>
<a id="pl.59.15"></a><var>59.15</var>conservation lands, unless reclassified as nonconservation lands, sold to a governmental <br/>
<a id="pl.59.16"></a><var>59.16</var>subdivision of the state, designated as lands primarily suitable for forest production and <br/>
<a id="pl.59.17"></a><var>59.17</var>sold as hereinafter provided, or released from the trust in favor of the taxing districts, as <br/>
<a id="pl.59.18"></a><var>59.18</var>herein provided, will must be held under the supervision of the county board of the county <br/>
<a id="pl.59.19"></a><var>59.19</var>within which such the parcels lie. and must not be conveyed or sold unless the lands are:<br/>
<a id="pl.59.20"></a><var>59.20</var>The county board may, by resolution duly adopted, declare lands classified as <br/>
<a id="pl.59.21"></a><var>59.21</var>conservation lands as primarily suitable for timber production and as lands which should <br/>
<a id="pl.59.22"></a><var>59.22</var>be placed in private ownership for such purposes. If such action be approved by the <br/>
<a id="pl.59.23"></a><var>59.23</var>commissioner of natural resources, the lands so designated, or any part thereof, may be <br/>
<a id="pl.59.24"></a><var>59.24</var>sold by the county board in the same manner as provided for the sale of lands classified as <br/>
<a id="pl.59.25"></a><var>59.25</var>nonconservation lands. Such county action and the approval of the commissioner shall be <br/>
<a id="pl.59.26"></a><var>59.26</var>limited to lands lying within areas zoned for restricted uses under the provisions of Laws <br/>
<a id="pl.59.27"></a><var>59.27</var>1939, chapter 340, or any amendments thereof.<br/>
<a id="pl.59.28"></a><var>59.28</var>(1) reclassified as nonconservation lands;<br/>
<a id="pl.59.29"></a><var>59.29</var>(2) conveyed to a governmental subdivision of the state under subdivision 1a;<br/>
<a id="pl.59.30"></a><var>59.30</var>(3) released from the trust in favor of the taxing districts as provided in paragraph <br/>
<a id="pl.59.31"></a><var>59.31</var>(b); or<br/>
<a id="pl.59.32"></a><var>59.32</var>(4) conveyed or sold under the authority of another general or special law.<br/>
<a id="pl.59.33"></a><var>59.33</var>(b) The county board may, by resolution duly adopted, resolve that certain lands <br/>
<a id="pl.59.34"></a><var>59.34</var>classified as conservation lands shall be devoted to conservation uses and may submit <br/>
<a id="pl.59.35"></a><var>59.35</var>such a resolution to the commissioner of natural resources. If, upon investigation, <br/>
<a id="pl.60.1"></a><var>60.1</var>the commissioner of natural resources determines that the lands covered by such the <br/>
<a id="pl.60.2"></a><var>60.2</var>resolution, or any part thereof, can be managed and developed for conservation purposes, <br/>
<a id="pl.60.3"></a><var>60.3</var>the commissioner shall make a certificate describing the lands and reciting the acceptance <br/>
<a id="pl.60.4"></a><var>60.4</var>thereof on behalf of the state for such purposes. The commissioner shall transmit the <br/>
<a id="pl.60.5"></a><var>60.5</var>certificate to the county auditor, who shall note the same upon the auditor's records and <br/>
<a id="pl.60.6"></a><var>60.6</var>record the same with the county recorder. The title to all lands so accepted shall be held <br/>
<a id="pl.60.7"></a><var>60.7</var>by the state free from any trust in favor of any and all taxing districts and such the lands <br/>
<a id="pl.60.8"></a><var>60.8</var>shall be devoted thereafter to the purposes of forestry, water conservation, flood control, <br/>
<a id="pl.60.9"></a><var>60.9</var>parks, game refuges, controlled game management areas, public shooting grounds, or <br/>
<a id="pl.60.10"></a><var>60.10</var>other public recreational or conservation uses, and managed, controlled, and regulated <br/>
<a id="pl.60.11"></a><var>60.11</var>for such purposes under the jurisdiction of the commissioner of natural resources and <br/>
<a id="pl.60.12"></a><var>60.12</var>the divisions of the department.<br/>
<a id="pl.60.13"></a><var>60.13</var>(c) All proceeds derived from the sale of timber, lease of crops of hay, or other <br/>
<a id="pl.60.14"></a><var>60.14</var>revenue from lands under the jurisdiction of the commissioner of natural resources shall <br/>
<a id="pl.60.15"></a><var>60.15</var>be credited to the general fund of the state.<br/>
<a id="pl.60.16"></a><var>60.16</var>In case (d) If the commissioner of natural resources shall determine determines that <br/>
<a id="pl.60.17"></a><var>60.17</var>any tract of land so held acquired by the state under paragraph (b) and situated within or <br/>
<a id="pl.60.18"></a><var>60.18</var>adjacent to the boundaries of any governmental subdivision of the state is suitable for use <br/>
<a id="pl.60.19"></a><var>60.19</var>by such the subdivision for any authorized public purpose, the commissioner may convey <br/>
<a id="pl.60.20"></a><var>60.20</var>such the tract by deed in the name of the state to such the subdivision upon the filing <br/>
<a id="pl.60.21"></a><var>60.21</var>with the commissioner of a resolution adopted by a majority vote of all the members <br/>
<a id="pl.60.22"></a><var>60.22</var>of the governing body thereof, stating the purpose for which the land is desired. The <br/>
<a id="pl.60.23"></a><var>60.23</var>deed of conveyance shall be upon a form approved by the attorney general and must be <br/>
<a id="pl.60.24"></a><var>60.24</var>conditioned upon continued use for the purpose stated in the resolution. All proceeds <br/>
<a id="pl.60.25"></a><var>60.25</var>derived from the sale of timber, lease of hay stumpage, or other revenue from such <br/>
<a id="pl.60.26"></a><var>60.26</var>lands under the jurisdiction of the natural resources commissioner shall be paid into the <br/>
<a id="pl.60.27"></a><var>60.27</var>general fund of the state.<br/>
<a id="pl.60.28"></a><var>60.28</var>(e) The county auditor, with the approval of the county board, may lease conservation <br/>
<a id="pl.60.29"></a><var>60.29</var>lands remaining under the jurisdiction supervision of the county board and sell timber <br/>
<a id="pl.60.30"></a><var>60.30</var>and hay stumpage thereon in the manner hereinafter provided, and all proceeds derived <br/>
<a id="pl.60.31"></a><var>60.31</var>therefrom shall be distributed in the same manner as provided in section 
         <statute_ref>282.04</statute_ref>. <br/>
<a id="pl.60.32"></a><var>60.32</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.5.8.0"></a><a id="pl.60.33"></a><var>60.33</var>    Sec. 8. Minnesota Statutes 2008, section 282.01, subdivision 3, is amended to read:<br/>
<a id="pl.60.34"></a><var>60.34</var>    Subd. 3. <b>Nonconservation lands; appraisal and sale.</b> (a) All parcels of land <br/>
<a id="pl.60.35"></a><var>60.35</var>classified as nonconservation, except those which may be reserved, shall be sold as <br/>
<a id="pl.61.1"></a><var>61.1</var>provided, if it is determined, by the county board of the county in which the parcels lie, <br/>
<a id="pl.61.2"></a><var>61.2</var>that it is advisable to do so, having in mind their accessibility, their proximity to existing <br/>
<a id="pl.61.3"></a><var>61.3</var>public improvements, and the effect of their sale and occupancy on the public burdens. <br/>
<a id="pl.61.4"></a><var>61.4</var>Any parcels of land proposed to be sold shall be first appraised by the county board of <br/>
<a id="pl.61.5"></a><var>61.5</var>the county in which the parcels lie. The parcels may be reappraised whenever the county <br/>
<a id="pl.61.6"></a><var>61.6</var>board deems it necessary to carry out the intent of sections 
         <statute_ref>282.01</statute_ref> to 
         <statute_ref>282.13</statute_ref>.<br/>
<a id="pl.61.7"></a><var>61.7</var>(b) In an appraisal the value of the land and any standing timber on it shall be <br/>
<a id="pl.61.8"></a><var>61.8</var>separately determined. No parcel of land containing any standing timber may be sold until <br/>
<a id="pl.61.9"></a><var>61.9</var>the appraised value of the timber on it and the sale of the land have been approved by the <br/>
<a id="pl.61.10"></a><var>61.10</var>commissioner of natural resources. The commissioner shall base review of a proposed <br/>
<a id="pl.61.11"></a><var>61.11</var>sale on the policy and considerations specified in subdivision 1. The decision of the <br/>
<a id="pl.61.12"></a><var>61.12</var>commissioner shall be in writing and shall state the reasons for it. The commissioner's <br/>
<a id="pl.61.13"></a><var>61.13</var>decision is exempt from the rulemaking provisions of chapter 14 and section 
         <statute_ref>14.386</statute_ref> <br/>
<a id="pl.61.14"></a><var>61.14</var>does not apply. The county may appeal the decision of the commissioner in accordance <br/>
<a id="pl.61.15"></a><var>61.15</var>with chapter 14. <br/>
<a id="pl.61.16"></a><var>61.16</var>(c) In any county in which a state forest or any part of it is located, the county <br/>
<a id="pl.61.17"></a><var>61.17</var>auditor shall submit to the commissioner at least 60 days before the first publication of the <br/>
<a id="pl.61.18"></a><var>61.18</var>list of lands to be offered for sale a list of all lands included on the list which are situated <br/>
<a id="pl.61.19"></a><var>61.19</var>outside of any incorporated municipality. If, at any time before the opening of the sale, the <br/>
<a id="pl.61.20"></a><var>61.20</var>commissioner notifies the county auditor in writing that there is standing timber on any <br/>
<a id="pl.61.21"></a><var>61.21</var>parcel of such land, the parcel shall not be sold unless the requirements of this section <br/>
<a id="pl.61.22"></a><var>61.22</var>respecting the separate appraisal of the timber and the approval of the appraisal by the <br/>
<a id="pl.61.23"></a><var>61.23</var>commissioner have been complied with. The commissioner may waive the requirement <br/>
<a id="pl.61.24"></a><var>61.24</var>of the 60-day notice as to any parcel of land which has been examined and the timber <br/>
<a id="pl.61.25"></a><var>61.25</var>value approved as required by this section.<br/>
<a id="pl.61.26"></a><var>61.26</var>(d) If any public improvement is made by a municipality after any parcel of land has <br/>
<a id="pl.61.27"></a><var>61.27</var>been forfeited to the state for the nonpayment of taxes, and the improvement is assessed in <br/>
<a id="pl.61.28"></a><var>61.28</var>whole or in part against the property benefited by it, the clerk of the municipality shall <br/>
<a id="pl.61.29"></a><var>61.29</var>certify to the county auditor, immediately upon the determination of the assessments for <br/>
<a id="pl.61.30"></a><var>61.30</var>the improvement, the total amount that would have been assessed against the parcel of land <br/>
<a id="pl.61.31"></a><var>61.31</var>if it had been subject to assessment; or if the public improvement is made, petitioned for, <br/>
<a id="pl.61.32"></a><var>61.32</var>ordered in or assessed, whether the improvement is completed in whole or in part, at any <br/>
<a id="pl.61.33"></a><var>61.33</var>time between the appraisal and the sale of the parcel of land, the cost of the improvement <br/>
<a id="pl.61.34"></a><var>61.34</var>shall be included as a separate item and added to the appraised value of the parcel of land <br/>
<a id="pl.61.35"></a><var>61.35</var>at the time it is sold. No sale of a parcel of land shall discharge or free the parcel of land <br/>
<a id="pl.61.36"></a><var>61.36</var>from lien for the special benefit conferred upon it by reason of the public improvement <br/>
<a id="pl.62.1"></a><var>62.1</var>until the cost of it, including penalties, if any, is paid. The county board shall determine <br/>
<a id="pl.62.2"></a><var>62.2</var>the amount, if any, by which the value of the parcel was enhanced by the improvement and <br/>
<a id="pl.62.3"></a><var>62.3</var>include the amount as a separate item in fixing the appraised value for the purpose of sale. <br/>
<a id="pl.62.4"></a><var>62.4</var>In classifying, appraising, and selling the lands, the county board may designate the tracts <br/>
<a id="pl.62.5"></a><var>62.5</var>as assessed and acquired, or may by resolution provide for the subdivision of the tracts into <br/>
<a id="pl.62.6"></a><var>62.6</var>smaller units or for the grouping of several tracts into one tract when the subdivision or <br/>
<a id="pl.62.7"></a><var>62.7</var>grouping is deemed advantageous for the purpose of sale. Each such smaller tract or larger <br/>
<a id="pl.62.8"></a><var>62.8</var>tract must be classified and appraised as such before being offered for sale. If any such <br/>
<a id="pl.62.9"></a><var>62.9</var>lands have once been classified, the board of county commissioners, in its discretion, may, <br/>
<a id="pl.62.10"></a><var>62.10</var>by resolution, authorize the sale of the smaller tract or larger tract without reclassification.<br/>
<a id="pl.62.11"></a><var>62.11</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.5.9.0"></a><a id="pl.62.12"></a><var>62.12</var>    Sec. 9. Minnesota Statutes 2008, section 282.01, subdivision 4, is amended to read:<br/>
<a id="pl.62.13"></a><var>62.13</var>    Subd. 4. <b>Sale: method, requirements, effects.</b> The sale authorized under <br/>
<a id="pl.62.14"></a><var>62.14</var>subdivision 3 must be conducted by the county auditor at the county seat of the county in <br/>
<a id="pl.62.15"></a><var>62.15</var>which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may <br/>
<a id="pl.62.16"></a><var>62.16</var>be conducted in any county facility within the county. The sale must not be for less than <br/>
<a id="pl.62.17"></a><var>62.17</var>the appraised value except as provided in subdivision 7a. The parcels must be sold for <br/>
<a id="pl.62.18"></a><var>62.18</var>cash only and at not less than the appraised value, unless the county board of the county <br/>
<a id="pl.62.19"></a><var>62.19</var>has adopted a resolution providing for their sale on terms, in which event the resolution <br/>
<a id="pl.62.20"></a><var>62.20</var>controls with respect to the sale. When the sale is made on terms other than for cash only <br/>
<a id="pl.62.21"></a><var>62.21</var>(1) a payment of at least ten percent of the purchase price must be made at the time of <br/>
<a id="pl.62.22"></a><var>62.22</var>purchase, and the balance must be paid in no more than ten equal annual installments, or <br/>
<a id="pl.62.23"></a><var>62.23</var>(2) the payments must be made in accordance with county board policy, but in no event <br/>
<a id="pl.62.24"></a><var>62.24</var>may the board require more than 12 installments annually, and the contract term must not <br/>
<a id="pl.62.25"></a><var>62.25</var>be for more than ten years. Standing timber or timber products must not be removed from <br/>
<a id="pl.62.26"></a><var>62.26</var>these lands until an amount equal to the appraised value of all standing timber or timber <br/>
<a id="pl.62.27"></a><var>62.27</var>products on the lands at the time of purchase has been paid by the purchaser. If a parcel of <br/>
<a id="pl.62.28"></a><var>62.28</var>land bearing standing timber or timber products is sold at public auction for more than <br/>
<a id="pl.62.29"></a><var>62.29</var>the appraised value, the amount bid in excess of the appraised value must be allocated <br/>
<a id="pl.62.30"></a><var>62.30</var>between the land and the timber in proportion to their respective appraised values. In that <br/>
<a id="pl.62.31"></a><var>62.31</var>case, standing timber or timber products must not be removed from the land until the <br/>
<a id="pl.62.32"></a><var>62.32</var>amount of the excess bid allocated to timber or timber products has been paid in addition <br/>
<a id="pl.62.33"></a><var>62.33</var>to the appraised value of the land. The purchaser is entitled to immediate possession, <br/>
<a id="pl.62.34"></a><var>62.34</var>subject to the provisions of any existing valid lease made in behalf of the state.<br/>
<a id="pl.63.1"></a><var>63.1</var>For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price <br/>
<a id="pl.63.2"></a><var>63.2</var>is subject to interest at the rate determined pursuant to section 
         <statute_ref>549.09</statute_ref>. The unpaid balance <br/>
<a id="pl.63.3"></a><var>63.3</var>of the purchase price for sales occurring after December 31, 1990, is subject to interest <br/>
<a id="pl.63.4"></a><var>63.4</var>at the rate determined in section 
         <statute_ref>279.03, subdivision 1a</statute_ref>. The interest rate is subject to <br/>
<a id="pl.63.5"></a><var>63.5</var>change each year on the unpaid balance in the manner provided for rate changes in section <br/>
<statute_ref><a id="pl.63.6"></a><var>63.6</var>549.09
         </statute_ref> or 
         <statute_ref>279.03, subdivision 1a</statute_ref>, whichever, is applicable. Interest on the unpaid contract <br/>
<a id="pl.63.7"></a><var>63.7</var>balance on sales occurring before July 1, 1982, is payable at the rate applicable to the sale <br/>
<a id="pl.63.8"></a><var>63.8</var>at the time that the sale occurred. <br/>
<a id="pl.63.9"></a><var>63.9</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.5.10.0"></a><a id="pl.63.10"></a><var>63.10</var>    Sec. 10. Minnesota Statutes 2008, section 282.01, subdivision 7, is amended to read:<br/>
<a id="pl.63.11"></a><var>63.11</var>    Subd. 7. <b>County sales; notice, purchase price, disposition.</b> The sale must <br/>
<a id="pl.63.12"></a><var>63.12</var>commence at the time determined by the county board of the county in which the parcels <br/>
<a id="pl.63.13"></a><var>63.13</var>are located. The county auditor shall offer the parcels of land in order in which they <br/>
<a id="pl.63.14"></a><var>63.14</var>appear in the notice of sale, and shall sell them to the highest bidder, but not for a sum <br/>
<a id="pl.63.15"></a><var>63.15</var>less than the appraised value, until all of the parcels of land have been offered. Then the <br/>
<a id="pl.63.16"></a><var>63.16</var>county auditor shall sell any remaining parcels to anyone offering to pay the appraised <br/>
<a id="pl.63.17"></a><var>63.17</var>value, except that if the person could have repurchased a parcel of property under section <br/>
<statute_ref><a id="pl.63.18"></a><var>63.18</var>282.012
         </statute_ref> or 
         <statute_ref>282.241</statute_ref>, that person may not purchase that same parcel of property at the sale <br/>
<a id="pl.63.19"></a><var>63.19</var>under this subdivision for a purchase price less than the sum of all taxes, assessments, <br/>
<a id="pl.63.20"></a><var>63.20</var>penalties, interest, and costs due at the time of forfeiture computed under section 
         <statute_ref>282.251</statute_ref>, <br/>
<a id="pl.63.21"></a><var>63.21</var>and any special assessments for improvements certified as of the date of sale. The sale <br/>
<a id="pl.63.22"></a><var>63.22</var>must continue until all the parcels are sold or until the county board orders a reappraisal or <br/>
<a id="pl.63.23"></a><var>63.23</var>withdraws any or all of the parcels from sale. The list of lands may be added to and the <br/>
<a id="pl.63.24"></a><var>63.24</var>added lands may be sold at any time by publishing the descriptions and appraised values. <br/>
<a id="pl.63.25"></a><var>63.25</var>The added lands must be: (1) parcels of land that have become forfeited and classified <br/>
<a id="pl.63.26"></a><var>63.26</var>as nonconservation since the commencement of any prior sale; (2) parcels classified as <br/>
<a id="pl.63.27"></a><var>63.27</var>nonconservation that have been reappraised; (3) parcels that have been reclassified as <br/>
<a id="pl.63.28"></a><var>63.28</var>nonconservation; or (4) other parcels that are subject to sale but were omitted from the <br/>
<a id="pl.63.29"></a><var>63.29</var>existing list for any reason. The descriptions and appraised values must be published in <br/>
<a id="pl.63.30"></a><var>63.30</var>the same manner as provided for the publication of the original list. Parcels added to the <br/>
<a id="pl.63.31"></a><var>63.31</var>list must first be offered for sale to the highest bidder before they are sold at appraised <br/>
<a id="pl.63.32"></a><var>63.32</var>value. All parcels of land not offered for immediate sale, as well as parcels that are offered <br/>
<a id="pl.63.33"></a><var>63.33</var>and not immediately sold, continue to be held in trust by the state for the taxing districts <br/>
<a id="pl.63.34"></a><var>63.34</var>interested in each of the parcels, under the supervision of the county board. Those parcels <br/>
<a id="pl.63.35"></a><var>63.35</var>may be used for public purposes until sold, as directed by the county board. <br/>
<a id="pl.64.1"></a><var>64.1</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.5.11.0"></a><a id="pl.64.2"></a><var>64.2</var>    Sec. 11. Minnesota Statutes 2008, section 282.01, subdivision 7a, is amended to read:<br/>
<a id="pl.64.3"></a><var>64.3</var>    Subd. 7a. <b>City sales; alternate procedures.</b> Land located in a home rule charter <br/>
<a id="pl.64.4"></a><var>64.4</var>or statutory city, or in a town which cannot be improved because of noncompliance with <br/>
<a id="pl.64.5"></a><var>64.5</var>local ordinances regarding minimum area, shape, frontage or access may be sold by the <br/>
<a id="pl.64.6"></a><var>64.6</var>county auditor pursuant to this subdivision if the auditor determines that a nonpublic sale <br/>
<a id="pl.64.7"></a><var>64.7</var>will encourage the approval of sale of the land by the city or town and promote its return <br/>
<a id="pl.64.8"></a><var>64.8</var>to the tax rolls. If the physical characteristics of the land indicate that its highest and best <br/>
<a id="pl.64.9"></a><var>64.9</var>use will be achieved by combining it with an adjoining parcel and the city or town has not <br/>
<a id="pl.64.10"></a><var>64.10</var>adopted a local ordinance governing minimum area, shape, frontage, or access, the land <br/>
<a id="pl.64.11"></a><var>64.11</var>may also be sold pursuant to this subdivision. If the property consists of an undivided <br/>
<a id="pl.64.12"></a><var>64.12</var>interest in land or land and improvements, the property may also be sold to the other <br/>
<a id="pl.64.13"></a><var>64.13</var>owners under this subdivision. The sale of land pursuant to this subdivision shall be <br/>
<a id="pl.64.14"></a><var>64.14</var>subject to any conditions imposed by the county board pursuant to section 
         <statute_ref>282.03</statute_ref>. The <br/>
<a id="pl.64.15"></a><var>64.15</var>governing body of the city or town may recommend to the county board conditions to be <br/>
<a id="pl.64.16"></a><var>64.16</var>imposed on the sale. The county auditor may restrict the sale to owners of lands adjoining <br/>
<a id="pl.64.17"></a><var>64.17</var>the land to be sold. The county auditor shall conduct the sale by sealed bid or may select <br/>
<a id="pl.64.18"></a><var>64.18</var>another means of sale. The land shall be sold to the highest bidder but in no event shall the <br/>
<a id="pl.64.19"></a><var>64.19</var>land and may be sold for less than its appraised value. All owners of land adjoining the <br/>
<a id="pl.64.20"></a><var>64.20</var>land to be sold shall be given a written notice at least 30 days prior to the sale. <br/>
<a id="pl.64.21"></a><var>64.21</var>This subdivision shall be liberally construed to encourage the sale and utilization <br/>
<a id="pl.64.22"></a><var>64.22</var>of tax-forfeited land, to eliminate nuisances and dangerous conditions and to increase <br/>
<a id="pl.64.23"></a><var>64.23</var>compliance with land use ordinances.<br/>
<a id="pl.64.24"></a><var>64.24</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.5.12.0"></a><a id="pl.64.25"></a><var>64.25</var>    Sec. 12. Minnesota Statutes 2008, section 287.2205, is amended to read:<br/>
<a id="pl.64.26"></a><var>64.26</var><b>287.2205 TAX-FORFEITED LAND. </b><br/>
<a id="pl.64.27"></a><var>64.27</var>    Before a state deed for tax-forfeited land may be issued, the deed tax must be paid <br/>
<a id="pl.64.28"></a><var>64.28</var>by the purchaser of tax-forfeited land whether the purchase is the result of a public <br/>
<a id="pl.64.29"></a><var>64.29</var>auction or private sale or a repurchase of tax-forfeited land. State agencies and local <br/>
<a id="pl.64.30"></a><var>64.30</var>units of government that acquire tax-forfeited land by purchase or any other means are <br/>
<a id="pl.64.31"></a><var>64.31</var>subject to this section. The deed tax is $1.65 for a conveyance of tax-forfeited lands to a <br/>
<a id="pl.64.32"></a><var>64.32</var>governmental subdivision for an authorized public use under section 
         <statute_ref>282.01, subdivision <br/>
</statute_ref><a id="pl.64.33"></a><var>64.33</var>1a, or for redevelopment purposes under section 
<statute_ref>282.01, subdivision 1b</statute_ref>. <br/>
<a id="pl.65.1"></a><var>65.1</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.5.13.0"></a><a id="pl.65.2"></a><var>65.2</var>    Sec. 13. <b> REPEALER.</b><br/>
<a id="pl.65.3"></a><var>65.3</var>Minnesota Statutes 2008, sections 282.01, subdivisions 9, 10, and 11; and 383A.76, <br/>
<a id="pl.65.4"></a><var>65.4</var>are repealed.<br/>
<a id="pl.65.5"></a><var>65.5</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.6.0.0"></a>

<a id="bill.6.1.0"></a><a id="pl.65.8"></a><var>65.8</var>    Section 1. Minnesota Statutes 2008, section 270B.14, subdivision 16, is amended to <br/>
<a id="pl.65.9"></a><var>65.9</var>read:<br/>
<a id="pl.65.10"></a><var>65.10</var>    Subd. 16. <b>Disclosure to law enforcement authorities.</b> Under circumstances <br/>
<a id="pl.65.11"></a><var>65.11</var>involving threat of death or physical injury to any individual, or harassment of a <br/>
<a id="pl.65.12"></a><var>65.12</var>Department of Revenue employee, the commissioner may disclose return information <br/>
<a id="pl.65.13"></a><var>65.13</var>to the extent necessary to apprise appropriate federal, state, or local law enforcement <br/>
<a id="pl.65.14"></a><var>65.14</var>authorities of such circumstances. For purposes of this subdivision, "harassment" is <br/>
<a id="pl.65.15"></a><var>65.15</var>purposeful conduct directed at an individual and causing an individual to feel frightened, <br/>
<a id="pl.65.16"></a><var>65.16</var>threatened, oppressed, persecuted, or intimidated. For purposes of harassment, the return <br/>
<a id="pl.65.17"></a><var>65.17</var>information that initially can be disclosed is limited to the name, address, and phone <br/>
<a id="pl.65.18"></a><var>65.18</var>number of the harassing individual, the name of the employee being harassed, and the <br/>
<a id="pl.65.19"></a><var>65.19</var>nature and circumstances of the harassment. Data disclosed under this subdivision are <br/>
<a id="pl.65.20"></a><var>65.20</var>classified under section 
         <statute_ref>13.82</statute_ref> once they are received by the law enforcement authority.  <br/>
<a id="pl.65.21"></a><var>65.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.2.0"></a><a id="pl.65.22"></a><var>65.22</var>    Sec. 2. Minnesota Statutes 2008, section 270C.12, is amended by adding a subdivision <br/>
<a id="pl.65.23"></a><var>65.23</var>to read:<br/>
<a id="pl.65.24"></a><var>65.24</var>    Subd. 5. <b>Duration.</b> Notwithstanding the provisions of any statutes to the contrary, <br/>
<a id="pl.65.25"></a><var>65.25</var>including section 15.059, the coordinating committee as established by this section to <br/>
<a id="pl.65.26"></a><var>65.26</var>oversee and coordinate preparation of the microdata samples of income tax returns and <br/>
<a id="pl.65.27"></a><var>65.27</var>other information shall not expire.<br/>
<a id="pl.65.28"></a><var>65.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.3.0"></a><a id="pl.65.29"></a><var>65.29</var>    Sec. 3. Minnesota Statutes 2008, section 270C.446, subdivision 2, is amended to read:<br/>
<a id="pl.66.1"></a><var>66.1</var>    Subd. 2.  <b>Required and excluded tax preparers.</b> (a) Subject to the limitations of <br/>
<a id="pl.66.2"></a><var>66.2</var>paragraph (b), the commissioner must publish lists of tax preparers as defined in section <br/>
<statute_ref><a id="pl.66.3"></a><var>66.3</var>289A.60, subdivision 13
         </statute_ref>, paragraph (f), who have been convicted under section 
         <statute_ref>289A.63</statute_ref> <br/>
<a id="pl.66.4"></a><var>66.4</var>for returns or claims prepared as a tax preparer or assessed penalties in excess of $1,000 <br/>
<a id="pl.66.5"></a><var>66.5</var>under section 
         <statute_ref>289A.60, subdivision </statute_ref>13, paragraph (a). <br/>
<a id="pl.66.6"></a><var>66.6</var>    (b) For the purposes of this section, tax preparers are not subject to publication if: <br/>
<a id="pl.66.7"></a><var>66.7</var>    (1) an administrative or court action contesting the penalty has been filed or served <br/>
<a id="pl.66.8"></a><var>66.8</var>and is unresolved at the time when notice would be given under subdivision 3; <br/>
<a id="pl.66.9"></a><var>66.9</var>    (2) an appeal period to contest the penalty has not expired; or <br/>
<a id="pl.66.10"></a><var>66.10</var>    (3) the commissioner has been notified that the tax preparer is deceased. <br/>
<a id="pl.66.11"></a><var>66.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.4.0"></a><a id="pl.66.12"></a><var>66.12</var>    Sec. 4. Minnesota Statutes 2008, section 270C.446, subdivision 5, is amended to read:<br/>
<a id="pl.66.13"></a><var>66.13</var>    Subd. 5. <b>Removal from list.</b> The commissioner shall remove the name of a tax <br/>
<a id="pl.66.14"></a><var>66.14</var>preparer from the list of tax preparers published under this section:<br/>
<a id="pl.66.15"></a><var>66.15</var>(1) when the commissioner determines that the name was included on the list in error;<br/>
<a id="pl.66.16"></a><var>66.16</var>(2) within 90 days after the preparer has demonstrated to the commissioner that <br/>
<a id="pl.66.17"></a><var>66.17</var>the preparer fully paid all fines imposed, served any suspension, satisfied any sentence <br/>
<a id="pl.66.18"></a><var>66.18</var>imposed, and demonstrated to the satisfaction of the commissioner that the preparer has <br/>
<a id="pl.66.19"></a><var>66.19</var>successfully completed any remedial actions required by the commissioner, the State <br/>
<a id="pl.66.20"></a><var>66.20</var>Board of Accountancy, or the Lawyers Board of Professional Responsibility; or<br/>
<a id="pl.66.21"></a><var>66.21</var>(3) when the commissioner has been notified that the tax preparer is deceased.<br/>
<a id="pl.66.22"></a><var>66.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.5.0"></a><a id="pl.66.23"></a><var>66.23</var>    Sec. 5. Minnesota Statutes 2008, section 270C.56, subdivision 1, is amended to read:<br/>
<a id="pl.66.24"></a><var>66.24</var>    Subdivision 1.  <b>Liability imposed.</b> A person who, either singly or jointly with <br/>
<a id="pl.66.25"></a><var>66.25</var>others, has the control of, supervision of, or responsibility for filing returns or reports, <br/>
<a id="pl.66.26"></a><var>66.26</var>paying taxes, or collecting or withholding and remitting taxes and who fails to do so, or a <br/>
<a id="pl.66.27"></a><var>66.27</var>person who is liable under any other law, is liable for the payment of taxes, penalties, and <br/>
<a id="pl.66.28"></a><var>66.28</var>interest arising under chapters 295, 296A, 297A, 297F, and 297G, or sections 
         <statute_ref>256.9658, <br/>
<a id="pl.66.29"></a><var>66.29</var>290.92,
         </statute_ref> and 
         <statute_ref>297E.02</statute_ref>, and, for the taxes listed in this subdivision, the applicable penalties <br/>
<a id="pl.66.30"></a><var>66.30</var>for nonpayment under section 
<statute_ref>289A.60</statute_ref> and interest on those taxes. <br/>
<a id="pl.66.31"></a><var>66.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.6.0"></a><a id="pl.67.1"></a><var>67.1</var>    Sec. 6. Minnesota Statutes 2008, section 289A.41, is amended to read:<br/>
<a id="pl.67.2"></a><var>67.2</var><b>289A.41 BANKRUPTCY; SUSPENSION OF TIME.</b><br/>
<a id="pl.67.3"></a><var>67.3</var>The running of the period during which a tax must be assessed or collection <br/>
<a id="pl.67.4"></a><var>67.4</var>proceedings commenced is suspended during the period from the date of a filing of a <br/>
<a id="pl.67.5"></a><var>67.5</var>petition in bankruptcy until 30 days after either notice to the commissioner of revenue that <br/>
<a id="pl.67.6"></a><var>67.6</var>the bankruptcy proceedings have been closed or dismissed, or notice that the automatic <br/>
<a id="pl.67.7"></a><var>67.7</var>stay has been terminated or has expired, whichever occurs first.<br/>
<a id="pl.67.8"></a><var>67.8</var>The suspension of the statute of limitations under this section applies to the person <br/>
<a id="pl.67.9"></a><var>67.9</var>the petition in bankruptcy is filed against and other persons who may also be wholly or <br/>
<a id="pl.67.10"></a><var>67.10</var>partially liable for the tax.<br/>
<a id="pl.67.11"></a><var>67.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.0.0"></a>

<a id="bill.7.1.0"></a><a id="pl.67.14"></a><var>67.14</var>    Section 1. <b>EDUCATION.</b><br/>
<a id="pl.67.15"></a><var>67.15</var>    Subdivision 1. <b>Department of Education.</b> The sums indicated in this section are <br/>
<a id="pl.67.16"></a><var>67.16</var>appropriated from the general fund to the Department of Education for the fiscal years <br/>
<a id="pl.67.17"></a><var>67.17</var>designated.<br/>
<a id="pl.67.18"></a><var>67.18</var>    Subd. 2. <b>General education aid.</b> For general education aid under Minnesota <br/>
<a id="pl.67.19"></a><var>67.19</var>Statutes, section 126C.13, subdivision 4:<br/>
<table>
<col width="50px"/>
<col width="29px"/>
<col width="16px"/>
<col width="105px"/>
<col width="42px"/>
<col width="42px"/>
<tr>
<td><a id="pl.67.20"></a><var>67.20</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right"> ...,...,000<br/>
</td>
<td align="right">.....<br/>
</td>
<td align="right">2010<br/>
</td>
</tr>
<tr>
<td><a id="pl.67.21"></a><var>67.21</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right"> ...,...,000<br/>
</td>
<td align="right">.....<br/>
</td>
<td align="right">2011<br/>
</td>
</tr>
</table><a id="pl.67.22"></a><var>67.22</var>The 2010 appropriation includes $...,...,000 for 2009 and $...,...,000 for 2010.<br/>
<a id="pl.67.23"></a><var>67.23</var>The 2011 appropriation includes $...,...,000 for 2010 and $...,...,000 for 2011.<br/>
<a id="pl.67.24"></a><var>67.24</var>    Subd. 3. <b>Special education; regular.</b> For special education aid under Minnesota <br/>
<a id="pl.67.25"></a><var>67.25</var>Statutes, section 125A.75:<br/>
<table>
<col width="50px"/>
<col width="29px"/>
<col width="16px"/>
<col width="105px"/>
<col width="42px"/>
<col width="42px"/>
<tr>
<td><a id="pl.67.26"></a><var>67.26</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">...,...,000<br/>
</td>
<td align="right">.....<br/>
</td>
<td align="right">2010<br/>
</td>
</tr>
<tr>
<td><a id="pl.67.27"></a><var>67.27</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">...,...,000<br/>
</td>
<td align="right">.....<br/>
</td>
<td align="right">2011<br/>
</td>
</tr>
</table><a id="pl.67.28"></a><var>67.28</var>The 2010 appropriation includes $...,...,000 for 2009 and $...,...,000 for 2010.<br/>
<a id="pl.67.29"></a><var>67.29</var>The 2011 appropriation includes $...,...,000 for 2010 and $...,...,000 for 2011.<br/>
<a id="pl.67.30"></a><var>67.30</var>    Subd. 4. <b>Special education; excess costs.</b> For excess cost aid under Minnesota <br/>
<a id="pl.67.31"></a><var>67.31</var>Statutes, section 125A.79, subdivision 7:<br/>
<table>
<col width="50px"/>
<col width="29px"/>
<col width="16px"/>
<col width="105px"/>
<col width="42px"/>
<col width="42px"/>
<tr>
<td><a id="pl.68.1"></a><var>68.1</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">...,...,000<br/>
</td>
<td align="right">.....<br/>
</td>
<td align="right">2010<br/>
</td>
</tr>
<tr>
<td><a id="pl.68.2"></a><var>68.2</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">...,...,000<br/>
</td>
<td align="right">.....<br/>
</td>
<td align="right">2011<br/>
</td>
</tr>
</table><a id="pl.68.3"></a><var>68.3</var>The 2010 appropriation includes $...,...,000 for 2009 and $...,...,000 for 2010.<br/>
<a id="pl.68.4"></a><var>68.4</var>The 2011 appropriation includes $...,...,000 for 2010 and $...,...,000 for 2011.<br/>
<br/>
<a id="bill.7.2.0"></a><table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.68.5"></a><var>68.5</var><br/>
</td>
<td colspan="3">Sec. 2. <b>HUMAN SERVICES</b><br/>
</td>
<td align="center"></td>
<td align="right"></td>
<td align="center"></td>
<td align="right"></td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.68.6"></a><var>68.6</var><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
<td align="center" colspan="4" valign="bottom"><b>APPROPRIATIONS</b><br/>
</td>
</tr>
<tr>
<td><a id="pl.68.7"></a><var>68.7</var><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
<td align="center" colspan="4" valign="bottom"><b>Available for the Year</b><br/>
</td>
</tr>
<tr>
<td><a id="pl.68.8"></a><var>68.8</var><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
<td align="center" colspan="4" valign="bottom"><b>Ending June 30</b><br/>
</td>
</tr>
<tr>
<td><a id="pl.68.9"></a><var>68.9</var><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
<td align="left" valign="bottom"></td>
<td align="center" valign="bottom"><b>2010</b><br/>
</td>
<td align="left" valign="bottom"></td>
<td align="center" valign="bottom"><b>2011</b><br/>
</td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.68.10"></a><var>68.10</var><br/>
</td>
<td colspan="3">Subdivision 1.<b>Total Appropriation</b><br/>
</td>
<td align="center"><b>$</b><br/>
</td>
<td align="right"><b>...,...,000</b><br/>
</td>
<td align="center"><b>$</b><br/>
</td>
<td align="right"><b>...,...,000</b><br/>
</td>
</tr>
</table><a id="pl.68.11"></a><var>68.11</var>The sums shown in the columns marked <br/>
<a id="pl.68.12"></a><var>68.12</var>"Appropriations" are appropriated from the <br/>
<a id="pl.68.13"></a><var>68.13</var>general fund to the Department of Human <br/>
<a id="pl.68.14"></a><var>68.14</var>Services for the purposes specified in the <br/>
<a id="pl.68.15"></a><var>68.15</var>following subdivisions. "The first year" is <br/>
<a id="pl.68.16"></a><var>68.16</var>fiscal year 2010. "The second year" is fiscal <br/>
<a id="pl.68.17"></a><var>68.17</var>year 2011.<br/>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.68.18"></a><var>68.18</var><br/>
</td>
<td colspan="3">Subd. 2.<b>Health Care</b><br/>
</td>
<td align="center"></td>
<td align="right"></td>
<td align="center"></td>
<td align="right"></td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.68.19"></a><var>68.19</var><br/>
<a id="pl.68.20"></a><var>68.20</var><br/>
</td>
<td colspan="3"><b>(a) Medical Assistance Basic Health Care </b><br/>
<b>Grants; Families and Children</b><br/>
</td>
<td align="center"></td>
<td align="right">...,...,000<br/>
</td>
<td align="center"></td>
<td align="right">...,...,000<br/>
</td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.68.21"></a><var>68.21</var><br/>
<a id="pl.68.22"></a><var>68.22</var><br/>
</td>
<td colspan="3"><b>(b) Medical Assistance Basic Health Care </b><br/>
<b>Grants; Elderly and Disabled</b><br/>
</td>
<td align="center"></td>
<td align="right">...,...,000<br/>
</td>
<td align="center"></td>
<td align="right">...,...,000<br/>
</td>
</tr>
</table><a id="pl.68.23"></a><var>68.23</var><b>Inpatient Hospital Rate Increase.</b> Effective <br/>
<a id="pl.68.24"></a><var>68.24</var>for services rendered on or after July 1, 2009, <br/>
<a id="pl.68.25"></a><var>68.25</var>the commissioner of human services shall <br/>
<a id="pl.68.26"></a><var>68.26</var>provide a ... percent increase in medical <br/>
<a id="pl.68.27"></a><var>68.27</var>assistance payments for inpatient hospital <br/>
<a id="pl.68.28"></a><var>68.28</var>services.<br/>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.68.29"></a><var>68.29</var><br/>
<a id="pl.68.30"></a><var>68.30</var><br/>
</td>
<td colspan="3"><b>(c) Medical Assistance Long-Term Care </b><br/>
<b>Facilities Grants</b><br/>
</td>
<td align="center"></td>
<td align="right">...,...,000<br/>
</td>
<td align="center"></td>
<td align="right">...,...,000<br/>
</td>
</tr>
</table><a id="pl.68.31"></a><var>68.31</var><b>Provider Rate Increase.</b> (a) Effective July <br/>
<a id="pl.68.32"></a><var>68.32</var>1, 2009, the commissioner of human services <br/>
<a id="pl.68.33"></a><var>68.33</var>shall pay to each nursing facility reimbursed <br/>
<a id="pl.68.34"></a><var>68.34</var>under Minnesota Statutes, section 256B.434, <br/>
<a id="pl.68.35"></a><var>68.35</var>an operating payment rate adjustment equal <br/>
<a id="pl.69.1"></a><var>69.1</var>to ... percent of the operating payment rates <br/>
<a id="pl.69.2"></a><var>69.2</var>determined by the blending in Minnesota <br/>
<a id="pl.69.3"></a><var>69.3</var>Statutes, section 256B.441, subdivision 55, <br/>
<a id="pl.69.4"></a><var>69.4</var>paragraph (a).<br/>
<a id="pl.69.5"></a><var>69.5</var>(b) Effective July 1, 2009, the commissioner <br/>
<a id="pl.69.6"></a><var>69.6</var>of human services shall pay to each <br/>
<a id="pl.69.7"></a><var>69.7</var>intermediate care facility for persons with <br/>
<a id="pl.69.8"></a><var>69.8</var>developmental disabilities reimbursed under <br/>
<a id="pl.69.9"></a><var>69.9</var>Minnesota Statutes, section 256B.5012, an <br/>
<a id="pl.69.10"></a><var>69.10</var>adjustment to the total operating payment <br/>
<a id="pl.69.11"></a><var>69.11</var>rate of ... percent.<br/>