1.1A bill for an act1.2relating to the operation and financing of state and local government; making 1.3policy, technical, administrative, and clarifying changes to income, corporate 1.4franchise, estate, sales, use, mortgage, property, gross receipts, fuel, cigarette, 1.5tobacco, insurance, gambling, liquor, minerals, solid waste, and various taxes and 1.6tax-related provisions; modifying local government aid and tax data provisions; 1.7appropriating money for education, health, and human services;amending 1.8Minnesota Statutes 2008, sections 270B.14, subdivision 16; 270C.12, by adding 1.9a subdivision; 270C.446, subdivisions 2, 5; 270C.56, subdivision 1; 273.11, 1.10subdivision 23; 273.111, subdivision 4; 273.1115, subdivision 2; 273.1231, 1.11subdivision 8; 273.124, subdivisions 3, 3a, 13, 21; 273.13, subdivisions 23, 1.1225, 33; 273.33, subdivision 2; 273.37, subdivision 2; 274.13, subdivision 1.132; 274.135, subdivision 3; 274.14; 274.175; 282.01, subdivisions 1, 1a, 1b, 1.141c, 1d, 2, 3, 4, 7, 7a, by adding a subdivision; 287.04; 287.05, by adding a 1.15subdivision; 287.22; 287.2205; 287.25; 289A.08, subdivision 3; 289A.12, by 1.16adding a subdivision; 289A.18, subdivision 1; 289A.19, subdivision 4; 289A.31, 1.17subdivision 5; 289A.38, subdivision 7; 289A.41; 290.01, subdivision 19b; 1.18290.0671, subdivision 1; 290A.10; 290A.14; 290C.06; 290C.07; 295.56; 295.57, 1.19subdivision 5; 296A.21, subdivision 1; 297A.70, subdivisions 2, 4; 297A.992, 1.20subdivision 2; 297A.993, subdivision 1; 297E.02, subdivision 4; 297E.06, by 1.21adding a subdivision; 297E.11, subdivision 1; 297F.09, subdivision 7; 297G.09, 1.22subdivision 6; 297I.30, by adding a subdivision; 297I.35, subdivision 2; 1.23298.28, subdivision 11; 473.843, subdivision 3; 477A.011, subdivisions 34, 42; 1.24477A.013, subdivision 8; repealing Minnesota Statutes 2008, sections 282.01, 1.25subdivisions 9, 10, 11; 287.26; 287.27, subdivision 1; 297A.67, subdivision 1.2624; 298.28, subdivisions 11a, 13; 383A.76; Minnesota Rules, parts 8009.3000; 1.278115.0200; 8115.0300; 8115.0400; 8115.0500; 8115.0600; 8115.1000; 1.288115.1100; 8115.1200; 8115.1300; 8115.1400; 8115.1500; 8115.1600; 1.298115.1700; 8115.1800; 8115.1900; 8115.2000; 8115.2100; 8115.2200; 1.308115.2300; 8115.2400; 8115.2500; 8115.2600; 8115.2700; 8115.2800; 1.318115.2900; 8115.3000; 8115.4000; 8115.4100; 8115.4200; 8115.4300; 1.328115.4400; 8115.4500; 8115.4600; 8115.4700; 8115.4800; 8115.4900; 1.338115.5000; 8115.5100; 8115.5200; 8115.5300; 8115.5400; 8115.5500; 1.348115.5600; 8115.5700; 8115.5800; 8115.5900; 8115.6000; 8115.6100; 1.358115.6200; 8115.6300; 8115.6400; 8115.9900.1.36BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:2.1ARTICLE 12.2INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES2.3    Section 1. Minnesota Statutes 2008, section 289A.08, subdivision 3, is amended to 2.4read:2.5    Subd. 3. Corporations.(a) A corporation that is subject to the state's jurisdiction to 2.6tax under section 
         290.014, subdivision 5, must file a return, except that a foreign operating 2.7corporation as defined in section 
         290.01, subdivision 6b, is not required to file a return.2.8(b) Members of a unitary business that are required to file a combined report on one 2.9return must designate a member of the unitary business to be responsible for tax matters, 2.10including the filing of returns, the payment of taxes, additions to tax, penalties, interest, 2.11or any other payment, and for the receipt of refunds of taxes or interest paid in excess of 2.12taxes lawfully due. The designated member must be a member of the unitary business that 2.13is filing the single combined report and either:2.14(1) a corporation that is subject to the taxes imposed by chapter 290; or2.15(2) a corporation that is not subject to the taxes imposed by chapter 290:2.16(i) Such corporation consents by filing the return as a designated member under this 2.17clause to remit taxes, penalties, interest, or additions to tax due from the members of the 2.18unitary business subject to tax, and receive refunds or other payments on behalf of other 2.19members of the unitary business. The member designated under this clause is a "taxpayer" 2.20for the purposes of this chapter and chapter 270C, and is liable for any liability imposed 2.21on the unitary business under this chapter and chapter 290.2.22(ii) If the state does not otherwise have the jurisdiction to tax the member designated 2.23under this clause, consenting to be the designated member does not create the jurisdiction 2.24to impose tax on the designated member, other than as described in item (i).2.25(iii) The member designated under this clause must apply for a business tax account 2.26identification number.2.27(c) The commissioner shall adopt rules for the filing of one return on behalf of the 2.28members of an affiliated group of corporations that are required to file a combined report. 2.29All members of an affiliated group that are required to file a combined report must file one 2.30return on behalf of the members of the group under rules adopted by the commissioner.2.31(d) If a corporation claims on a return that it has paid tax in excess of the amount of 2.32taxes lawfully due, that corporation must include on that return information necessary for 2.33payment of the tax in excess of the amount lawfully due by electronic means.2.34EFFECTIVE DATE.This section is effective for taxable years beginning after 2.35December 31, 2008.3.1    Sec. 2. Minnesota Statutes 2008, section 289A.12, is amended by adding a subdivision 3.2to read:3.3    Subd. 16.Qualified intermediaries.The commissioner may by notice and demand 3.4require a qualified intermediary to file a return relating to transactions for which the 3.5intermediary acted to facilitate exchanges under section 1031 of the Internal Revenue 3.6Code. The return must include the name, address, and state or federal tax identification 3.7number or Social Security number of each of the parties to the exchange, information 3.8relating to the property subject to the exchange, and any other information required by 3.9the commissioner.3.10EFFECTIVE DATE.This section is effective July 1, 2009, and applies to all 3.11transactions whether facilitated on, before, or after that date.3.12    Sec. 3. Minnesota Statutes 2008, section 289A.18, subdivision 1, is amended to read:3.13    Subdivision 1.  Individual income, fiduciary income, corporate franchise, and 3.14entertainment taxes; partnership and S corporation returns; information returns; 3.15mining company returns. The returns required to be made under sections 
         289A.08 and 3.16289A.12
          must be filed at the following times: 3.17    (1) returns made on the basis of the calendar year must be filed on April 15 following 3.18the close of the calendar year, except that returns of corporations must be filed on March 3.1915 following the close of the calendar year; 3.20    (2) returns made on the basis of the fiscal year must be filed on the 15th day of the 3.21fourth month following the close of the fiscal year, except that returns of corporations 3.22must be filed on the 15th day of the third month following the close of the fiscal year; 3.23    (3) returns for a fractional part of a year must be filed on the 15th day of the fourth 3.24month following the end of the month in which falls the last day of the period for which 3.25the return is made, except that the returns of corporations must be filed on the 15th day of 3.26the third month following the end of the tax year; or, in the case of a corporation which is 3.27a member of a unitary group, the return of the corporation must be filed on the 15th day of 3.28the third month following the end of the tax year of the unitary group in which falls the 3.29last day of the period for which the return is made; 3.30    (4) in the case of a final return of a decedent for a fractional part of a year, the return 3.31must be filed on the 15th day of the fourth month following the close of the 12-month 3.32period that began with the first day of that fractional part of a year; 3.33    (5) in the case of the return of a cooperative association, returns must be filed on or 3.34before the 15th day of the ninth month following the close of the taxable year; 4.1    (6) if a corporation has been divested from a unitary group and files a return for 4.2a fractional part of a year in which it was a member of a unitary business that files a 4.3combined report under section 
         290.17, subdivision 4, the divested corporation's return 4.4must be filed on the 15th day of the third month following the close of the common 4.5accounting period that includes the fractional year; 4.6    (7) returns of entertainment entities must be filed on April 15 following the close of 4.7the calendar year; 4.8    (8) returns required to be filed under section 
         289A.08, subdivision 4, must be filed 4.9on the 15th day of the fifth month following the close of the taxable year; 4.10    (9) returns of mining companies must be filed on May 1 following the close of the 4.11calendar year; and 4.12    (10) returns required to be filed with the commissioner under section 
         289A.12, 4.13subdivision 2 
         or, 4 to 10, or 16 must be filed within 30 days after being demanded by 4.14the commissioner. 4.15EFFECTIVE DATE.This section is effective July 1, 2009.4.16    Sec. 4. Minnesota Statutes 2008, section 289A.19, subdivision 4, is amended to read:4.17    Subd. 4. Estate tax returns.When an extension to file the federal estate tax return 4.18has been granted under section 6081 of the Internal Revenue Code, the time for filing 4.19the estate tax return is extended for that period. If the estate requests an extension to 4.20file an estate tax return within the time provided in section 289A.18, subdivision 3, the 4.21commissioner shall extend the time for filing the estate tax return for six months. The time 4.22for filing an estate tax return shall be extended for either six months or the amount of 4.23time granted under section 6081 of the Internal Revenue Code to file the federal estate 4.24tax return, whichever is longer.4.25EFFECTIVE DATE.This section is effective for estates of decedents dying after 4.26December 31, 2008.4.27    Sec. 5. Minnesota Statutes 2008, section 289A.31, subdivision 5, is amended to read:4.28    Subd. 5. Withholding tax, withholding from payments to out-of-state 4.29contractors, and withholding by partnerships and small business corporations. (a) 4.30Except as provided in paragraph (b), an employer or person withholding tax under section 4.31290.92
          or 
         290.923, subdivision 2, who fails to pay to or deposit with the commissioner a 4.32sum or sums required by those sections to be deducted, withheld, and paid, is personally 4.33and individually liable to the state for the sum or sums, and added penalties and interest, 5.1and is not liable to another person for that payment or payments. The sum or sums 5.2deducted and withheld under section 
         290.92, subdivision 2a or 3, or 
         290.923, subdivision 5.32
         , must be held as a special fund in trust for the state of Minnesota.5.4(b) If the employer or person withholding tax under section 
         290.92 or 
         290.923, 5.5subdivision 2
         , fails to deduct and withhold the tax in violation of those sections, and later 5.6the taxes against which the tax may be credited are paid, the tax required to be deducted 5.7and withheld will not be collected from the employer. This does not, however, relieve the 5.8employer from liability for any penalties and interest otherwise applicable for failure to 5.9deduct and withhold. This paragraph does not apply to an employer subject to paragraph 5.10(g), or to a contractor required to withhold under section 290.92, subdivision 31.5.11(c) Liability for payment of withholding taxes includes a responsible person or entity 5.12described in the personal liability provisions of section 
         270C.56.5.13(d) Liability for payment of withholding taxes includes a third party lender or surety 5.14described in section 
         270C.59.5.15(e) A partnership or S corporation required to withhold and remit tax under section 5.16290.92, subdivisions 4b and 4c
         , is liable for payment of the tax to the commissioner, and a 5.17person having control of or responsibility for the withholding of the tax or the filing of 5.18returns due in connection with the tax is personally liable for the tax due.5.19(f) A payor of sums required to be withheld under section 
         290.9705, subdivision 5.201
         , is liable to the state for the amount required to be deducted, and is not liable to an 5.21out-of-state contractor for the amount of the payment.5.22(g) If an employer fails to withhold tax from the wages of an employee when 5.23required to do so under section 290.92, subdivision 2a, by reason of treating such 5.24employee as not being an employee, then the liability for tax is equal to three percent of 5.25the wages paid to the employee. The liability for tax of an employee is not affected by 5.26the assessment or collection of tax under this paragraph. The employer is not entitled to 5.27recover from the employee any tax determined under this paragraph.5.28EFFECTIVE DATE.This section is effective for taxes required to be withheld 5.29after June 30, 2009.5.30    Sec. 6. Minnesota Statutes 2008, section 289A.38, subdivision 7, is amended to read:5.31    Subd. 7.  Federal tax changes. If the amount of income, items of tax preference, 5.32deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for 5.33any period, as reported to the Internal Revenue Service is changed or corrected by the 5.34commissioner of Internal Revenue or other officer of the United States or other competent 5.35authority, or where a renegotiation of a contract or subcontract with the United States 6.1results in a change in income, items of tax preference, deductions, credits, or withholding 6.2tax, or, in the case of estate tax, where there are adjustments to the taxable estate, the 6.3taxpayer shall report the change or correction or renegotiation results in writing to the 6.4commissioner. The report must be submitted within 180 days after the final determination 6.5and must be in the form of either an amended Minnesota estate, withholding tax, corporate 6.6franchise tax, or income tax return conceding the accuracy of the federal determination 6.7or a letter detailing how the federal determination is incorrect or does not change the 6.8Minnesota tax. An amended Minnesota income tax return must be accompanied by an 6.9amended property tax refund return, if necessary. A taxpayer filing an amended federal 6.10tax return must also file a copy of the amended return with the commissioner of revenue 6.11within 180 days after filing the amended return. 6.12EFFECTIVE DATE.This section is effective the day following final enactment.6.13    Sec. 7. Minnesota Statutes 2008, section 290.01, subdivision 19b, is amended to read:6.14    Subd. 19b.  Subtractions from federal taxable income. For individuals, estates, 6.15and trusts, there shall be subtracted from federal taxable income: 6.16    (1) net interest income on obligations of any authority, commission, or 6.17instrumentality of the United States to the extent includable in taxable income for federal 6.18income tax purposes but exempt from state income tax under the laws of the United States; 6.19    (2) if included in federal taxable income, the amount of any overpayment of income 6.20tax to Minnesota or to any other state, for any previous taxable year, whether the amount 6.21is received as a refund or as a credit to another taxable year's income tax liability; 6.22    (3) the amount paid to others, less the amount used to claim the credit allowed under 6.23section 
         290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten 6.24to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and 6.25transportation of each qualifying child in attending an elementary or secondary school 6.26situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a 6.27resident of this state may legally fulfill the state's compulsory attendance laws, which 6.28is not operated for profit, and which adheres to the provisions of the Civil Rights Act 6.29of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or 6.30tuition as defined in section 
         290.0674, subdivision 1, clause (1). As used in this clause, 6.31"textbooks" includes books and other instructional materials and equipment purchased 6.32or leased for use in elementary and secondary schools in teaching only those subjects 6.33legally and commonly taught in public elementary and secondary schools in this state. 6.34Equipment expenses qualifying for deduction includes expenses as defined and limited in 6.35section 
         290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional 7.1books and materials used in the teaching of religious tenets, doctrines, or worship, the 7.2purpose of which is to instill such tenets, doctrines, or worship, nor does it include books 7.3or materials for, or transportation to, extracurricular activities including sporting events, 7.4musical or dramatic events, speech activities, driver's education, or similar programs. No 7.5deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or 7.6the qualifying child's vehicle to provide such transportation for a qualifying child. For 7.7purposes of the subtraction provided by this clause, "qualifying child" has the meaning 7.8given in section 32(c)(3) of the Internal Revenue Code; 7.9    (4) income as provided under section 
         290.0802; 7.10    (5) to the extent included in federal adjusted gross income, income realized on 7.11disposition of property exempt from tax under section 
         290.491; 7.12    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) 7.13of the Internal Revenue Code in determining federal taxable income by an individual 7.14who does not itemize deductions for federal income tax purposes for the taxable year, an 7.15amount equal to 50 percent of the excess of charitable contributions over $500 allowable 7.16as a deduction for the taxable year under section 170(a) of the Internal Revenue Code and 7.17under the provisions of Public Law 109-1; 7.18    (7) for taxable years beginning before January 1, 2008, the amount of the federal 7.19small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code 7.20which is included in gross income under section 87 of the Internal Revenue Code; 7.21    (8) for individuals who are allowed a federal foreign tax credit for taxes that do not 7.22qualify for a credit under section 
         290.06, subdivision 22, an amount equal to the carryover 7.23of subnational foreign taxes for the taxable year, but not to exceed the total subnational 7.24foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, 7.25"federal foreign tax credit" means the credit allowed under section 27 of the Internal 7.26Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed 7.27under section 904(c) of the Internal Revenue Code minus national level foreign taxes to 7.28the extent they exceed the federal foreign tax credit; 7.29    (9) in each of the five tax years immediately following the tax year in which an 7.30addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case 7.31of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth 7.32of the delayed depreciation. For purposes of this clause, "delayed depreciation" means 7.33the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or 7.34subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the 7.35positive value of any net operating loss under section 172 of the Internal Revenue Code 8.1generated for the tax year of the addition. The resulting delayed depreciation cannot be 8.2less than zero; 8.3    (10) job opportunity building zone income as provided under section 
         469.316; 8.4    (11) to the extent included in federal taxable income, the amount of compensation 8.5paid to members of the Minnesota National Guard or other reserve components of the 8.6United States military for active service performed in Minnesota, excluding compensation 8.7for services performed under the Active Guard Reserve (AGR) program. For purposes of 8.8this clause, "active service" means (i) state active service as defined in section 
         190.05, 8.9subdivision 5a
         , clause (1); (ii) federally funded state active service as defined in section 8.10190.05, subdivision 5b
         ; or (iii) federal active service as defined in section 
         190.05, 8.11subdivision 5c
         , but "active service" excludes service performed in accordance with section 8.12190.08, subdivision 3
         ; 8.13    (12) to the extent included in federal taxable income, the amount of compensation 8.14paid to Minnesota residents who are members of the armed forces of the United States or 8.15United Nations for active duty performed outside Minnesota under United States Code, 8.16title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of 8.17the United Nations; 8.18    (13) an amount, not to exceed $10,000, equal to qualified expenses related to a 8.19qualified donor's donation, while living, of one or more of the qualified donor's organs 8.20to another person for human organ transplantation. For purposes of this clause, "organ" 8.21means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; 8.22"human organ transplantation" means the medical procedure by which transfer of a human 8.23organ is made from the body of one person to the body of another person; "qualified 8.24expenses" means unreimbursed expenses for both the individual and the qualified donor 8.25for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses 8.26may be subtracted under this clause only once; and "qualified donor" means the individual 8.27or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An 8.28individual may claim the subtraction in this clause for each instance of organ donation for 8.29transplantation during the taxable year in which the qualified expenses occur; 8.30    (14) in each of the five tax years immediately following the tax year in which an 8.31addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a 8.32shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 8.33addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the 8.34case of a shareholder of a corporation that is an S corporation, minus the positive value of 8.35any net operating loss under section 172 of the Internal Revenue Code generated for the 9.1tax year of the addition. If the net operating loss exceeds the addition for the tax year, a 9.2subtraction is not allowed under this clause; 9.3    (15) to the extent included in federal taxable income, compensation paid to a service 9.4member as defined in United States Code, title 10, section 101(a)(5), for military service 9.5as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2); 9.6    (16) international economic development zone income as provided under section 9.7469.325
         ; and9.8    (17) to the extent included in federal taxable income, the amount of national service 9.9educational awards received from the National Service Trust under United States Code, 9.10title 42, sections 12601 to 12604, for service in an approved Americorps National Service 9.11program. 9.12EFFECTIVE DATE.This section is effective the day following final enactment.9.13    Sec. 8. Minnesota Statutes 2008, section 290.0671, subdivision 1, is amended to read:9.14    Subdivision 1. Credit allowed. (a) An individual is allowed a credit against the tax 9.15imposed by this chapter equal to a percentage of earned income. To receive a credit, a 9.16taxpayer must be eligible for a credit under section 32 of the Internal Revenue Code.9.17(b) For individuals with no qualifying children, the credit equals 
         1.9125 percent of 9.18the first $4,620 of earned income. The credit is reduced by 
         1.9125 percent of earned 9.19income or adjusted gross income, whichever is greater, in excess of $5,770, but in no 9.20case is the credit less than zero.9.21(c) For individuals with one qualifying child, the credit equals 8.5 percent of the first 9.22$6,920 of earned income and 8.5 percent of earned income over $12,080 but less than 9.23$13,450. The credit is reduced by 
         5.73 percent of earned income or adjusted gross income, 9.24whichever is greater, in excess of $15,080, but in no case is the credit less than zero.9.25(d) For individuals with two or more qualifying children, the credit equals ten 9.26percent of the first $9,720 of earned income and 20 percent of earned income over 9.27$14,860 but less than $16,800. The credit is reduced by 10.3 percent of earned income 9.28or adjusted gross income, whichever is greater, in excess of $17,890, but in no case is 9.29the credit less than zero.9.30(e) For a nonresident or part-year resident, the credit must be allocated based on the 9.31percentage calculated under section 
         290.06, subdivision 2c, paragraph (e).9.32(f) For a person who was a resident for the entire tax year and has earned income 9.33not subject to tax under this chapter, including income excluded under section 
         290.01, 9.34subdivision 19b
         , clause (10) or (16), the credit must be allocated based on the ratio of 9.35federal adjusted gross income reduced by the earned income not subject to tax under 10.1this chapter over federal adjusted gross income. For purposes of this paragraph, the 10.2subtractions for military pay under section 
         290.01, subdivision 19b, clauses (11) and (12), 10.3are not considered "earned income not subject to tax under this chapter."10.4For the purposes of this paragraph, the exclusion of combat pay under section 112 10.5of the Internal Revenue Code is not considered "earned income not subject to tax under 10.6this chapter."10.7(g) For tax years beginning after December 31, 2001, and before December 31, 10.82004, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in 10.9paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by 10.10$1,000 for married taxpayers filing joint returns.10.11(h) For tax years beginning after December 31, 2004, and before December 31, 10.122007, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in 10.13paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by 10.14$2,000 for married taxpayers filing joint returns.10.15(i)(g) For tax years beginning after December 31, 2007, and before December 10.1631, 2010, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in 10.17paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by 10.18$3,000 for married taxpayers filing joint returns. For tax years beginning after December 10.1931, 2008, the commissioner shall annually adjust the $3,000 is adjusted annually for 10.20inflation under subdivision 7. by the percentage determined pursuant to the provisions 10.21of section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B), the word 10.22"2007" shall be substituted for the word "1992." For 2009, the commissioner shall then 10.23determine the percent change from the 12 months ending on August 31, 2007, to the 12 10.24months ending on August 31, 2008, and in each subsequent year, from the 12 months 10.25ending on August 31, 2007, to the 12 months ending on August 31 of the year preceding 10.26the taxable year. The earned income thresholds as adjusted for inflation must be rounded 10.27to the nearest $10. If the amount ends in $5, the amount is rounded up to the nearest $10. 10.28The determination of the commissioner under this subdivision is not a rule under the 10.29Administrative Procedure Act.10.30(j)(h) The commissioner shall construct tables showing the amount of the credit 10.31at various income levels and make them available to taxpayers. The tables shall follow 10.32the schedule contained in this subdivision, except that the commissioner may graduate 10.33the transition between income brackets.10.34EFFECTIVE DATE.This section is effective for taxable years beginning after 10.35December 31, 2008.11.1    Sec. 9. Minnesota Statutes 2008, section 290A.10, is amended to read:11.2290A.10 PROOF OF TAXES PAID.11.3Every claimant who files a claim for relief for property taxes payable shall include 11.4with the claim a property tax statement or a reproduction thereof in a form deemed 11.5satisfactory by the commissioner of revenue indicating that there are no delinquent 11.6property taxes on the homestead. Indication on the property tax statement from the county 11.7treasurer that there are no delinquent taxes on the homestead shall be sufficient proof. 11.8Taxes included in a confession of judgment under section 277.23 or279.37 shall not 11.9constitute delinquent taxes as long as the claimant is current on the payments required to 11.10be made under section 277.23 or279.37.11.11EFFECTIVE DATE.This section is effective the day following final enactment.11.12    Sec. 10. Minnesota Statutes 2008, section 290A.14, is amended to read:11.13290A.14 PROPERTY TAX STATEMENT.11.14The county treasurer shall prepare and send a sufficient number of copies of the 11.15property tax statement to the owner, and to the owner's escrow agent if the taxes are 11.16paid via an escrow account, to enable the owner to comply with the filing requirements 11.17of this chapter and to retain one copy as a record. The property tax statement, in a form 11.18prescribed by the commissioner, shall indicate the manner in which the claimant may 11.19claim relief from the state under both this chapter and chapter 290B, and the amount of the 11.20tax for which the applicant may claim relief. The statement shall also indicate if there 11.21are delinquent property taxes on the property in the preceding year. Taxes included in a 11.22confession of judgment under section 277.23 or279.37 shall not constitute delinquent 11.23taxes as long as the claimant is current on the payments required to be made under section11.24277.23 or279.37.11.25EFFECTIVE DATE.This section is effective the day following final enactment.11.26    Sec. 11.  REPEALER.11.27Minnesota Rules, part 8009.3000, is repealed.11.28EFFECTIVE DATE.This section is effective the day following final enactment.12.1ARTICLE 212.2SALES AND USE TAXES12.3    Section 1. Minnesota Statutes 2008, section 297A.70, subdivision 2, is amended to 12.4read:12.5    Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b), 12.6to the following governments and political subdivisions, or to the listed agencies or 12.7instrumentalities of governments and political subdivisions, are exempt:12.8(1) the United States and its agencies and instrumentalities;12.9(2) school districts, the University of Minnesota, state universities, community 12.10colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts 12.11Education, and an instrumentality of a political subdivision that is accredited as an 12.12optional/special function school by the North Central Association of Colleges and Schools;12.13(3) hospitals and nursing homes owned and operated by political subdivisions of 12.14the state of tangible personal property and taxable services used at or by hospitals and 12.15nursing homes;12.16(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip 12.17operations provided for in section 
         473.4051; 12.18(5) other states or political subdivisions of other states, if the sale would be exempt 12.19from taxation if it occurred in that state; and12.20(6) sales to public libraries, public library systems, multicounty, multitype library 12.21systems as defined in section 
         134.001, county law libraries under chapter 134A, state 12.22agency libraries, the state library under section 
         480.09, and the Legislative Reference 12.23Library. 12.24(b) This exemption does not apply to the sales of the following products and services:12.25(1) building, construction, or reconstruction materials purchased by a contractor 12.26or a subcontractor as a part of a lump-sum contract or similar type of contract with a 12.27guaranteed maximum price covering both labor and materials for use in the construction, 12.28alteration, or repair of a building or facility;12.29(2) construction materials purchased by tax exempt entities or their contractors to 12.30be used in constructing buildings or facilities which will not be used principally by the 12.31tax exempt entities;12.32(3) the leasing of a motor vehicle as defined in section 
         297B.01, subdivision 11, 12.33except for leases entered into by the United States or its agencies or instrumentalities; or 12.34(4) lodging as defined under section 
         297A.61, subdivision 3, paragraph (g), clause 12.35(2), and prepared food, candy, and soft drinks, and alcoholic beverages as defined in 13.1section 297A.67, subdivision 2, except for lodging, prepared food, candy, and soft 13.2drinks, and alcoholic beverages purchased directly by the United States or its agencies 13.3or instrumentalities. 13.4(c) As used in this subdivision, "school districts" means public school entities and 13.5districts of every kind and nature organized under the laws of the state of Minnesota, and 13.6any instrumentality of a school district, as defined in section 
         471.59. 13.7EFFECTIVE DATE.This section is effective for sales and purchases made after 13.8June 30, 2009.13.9    Sec. 2. Minnesota Statutes 2008, section 297A.70, subdivision 4, is amended to read:13.10    Subd. 4. Sales to nonprofit groups. (a) All sales, except those listed in paragraph 13.11(b), to the following "nonprofit organizations" are exempt:13.12(1) a corporation, society, association, foundation, or institution organized and 13.13operated exclusively for charitable, religious, or educational purposes if the item 13.14purchased is used in the performance of charitable, religious, or educational functions; and13.15(2) any senior citizen group or association of groups that:13.16(i) in general limits membership to persons who are either age 55 or older, or 13.17physically disabled; and13.18(ii) is organized and operated exclusively for pleasure, recreation, and other 13.19nonprofit purposes, not including housing, no part of the net earnings of which inures to 13.20the benefit of any private shareholders.; and13.21(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.13.22For purposes of this subdivision, charitable purpose includes the maintenance of a 13.23cemetery owned by a religious organization.13.24(b) This exemption does not apply to the following sales:13.25(1) building, construction, or reconstruction materials purchased by a contractor 13.26or a subcontractor as a part of a lump-sum contract or similar type of contract with a 13.27guaranteed maximum price covering both labor and materials for use in the construction, 13.28alteration, or repair of a building or facility;13.29(2) construction materials purchased by tax-exempt entities or their contractors to 13.30be used in constructing buildings or facilities that will not be used principally by the 13.31tax-exempt entities; and13.32(3) lodging as defined under section 
         297A.61, subdivision 3, paragraph (g), clause 13.33(2), and prepared food, candy, and soft drinks, and alcoholic beverages as defined in 14.1section 297A.67, subdivision 2, except wine purchased by an established religious 14.2organization for sacramental purposes; and 14.3(4) leasing of a motor vehicle as defined in section 
         297B.01, subdivision 11, except 14.4as provided in paragraph (c). 14.5(c) This exemption applies to the leasing of a motor vehicle as defined in section 14.6297B.01, subdivision 11
         , only if the vehicle is: 14.7(1) a truck, as defined in section 
         168.002, a bus, as defined in section 
         168.002, or a 14.8passenger automobile, as defined in section 
         168.002, if the automobile is designed and 14.9used for carrying more than nine persons including the driver; and 14.10(2) intended to be used primarily to transport tangible personal property or 14.11individuals, other than employees, to whom the organization provides service in 14.12performing its charitable, religious, or educational purpose.14.13(d) A limited liability company also qualifies for exemption under this subdivision if 14.14(1) it consists of a sole member that would qualify for the exemption, and (2) the items 14.15purchased qualify for the exemption.14.16EFFECTIVE DATE.This section is effective for sales and purchases made after 14.17June 30, 2009, except that the amendment to paragraph (a) is effective the day following 14.18final enactment.14.19    Sec. 3. Minnesota Statutes 2008, section 297A.992, subdivision 2, is amended to read:14.20    Subd. 2.  Authorization; rates. (a) Notwithstanding section 
         297A.99, subdivisions 14.211, 2, and 3, or 
         477A.016, or any other law, the board of a county participating in a 14.22joint powers agreement as specified in this section shall impose by resolution (1) a 14.23transportation sales and use tax at a rate of one-quarter of one percent on retail sales and 14.24uses taxable under this chapter, and (2) an excise tax of $20 per motor vehicle, as defined 14.25in section 297B.01, subdivision 5, purchased or acquired from any person engaged in the 14.26business of selling motor vehicles at retail, occurring within the jurisdiction of the taxing 14.27authority. The taxes authorized are to fund transportation improvements as specified in 14.28this section, including debt service on obligations issued to finance such improvements 14.29pursuant to subdivision 7. 14.30    (b) The tax imposed under this section is not included in determining if the total tax 14.31on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986, 14.32chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article 14.3312, section 87, or in determining a tax that may be imposed under any other limitations. 14.34EFFECTIVE DATE.This section is effective the day following final enactment.15.1    Sec. 4. Minnesota Statutes 2008, section 297A.993, subdivision 1, is amended to read:15.2    Subdivision 1.  Authorization; rates. Notwithstanding section 
         297A.99, 15.3subdivisions 1, 2, 3, 5, and 13, or 
         477A.016, or any other law, the board of a county outside 15.4the metropolitan transportation area, as defined under section 
         297A.992, subdivision 1, or 15.5more than one county outside the metropolitan transportation area acting under a joint 15.6powers agreement, may impose (1) a transportation sales tax at a rate of up to one-half of 15.7one percent on retail sales and uses taxable under this chapter, and (2) an excise tax of $20 15.8per motor vehicle, as defined in section 297B.01, subdivision 5, purchased or acquired 15.9from any person engaged in the business of selling motor vehicles at retail, occurring 15.10within the jurisdiction of the taxing authority. The taxes imposed under this section are 15.11subject to approval by a majority of the voters in each of the counties affected at a general 15.12election who vote on the question to impose the taxes. 15.13EFFECTIVE DATE.This section is effective the day following final enactment.15.14    Sec. 5.  REPEALER.15.15Minnesota Statutes 2008, section 297A.67, subdivision 24, is repealed.15.16EFFECTIVE DATE.This section is effective the day following final enactment.15.17ARTICLE 315.18SPECIAL TAXES15.19    Section 1. Minnesota Statutes 2008, section 287.04, is amended to read:15.20287.04 EXEMPTIONS.15.21The tax imposed by section 
         287.035 does not apply to:15.22(a) A decree of marriage dissolution or an instrument made pursuant to it.15.23(b) A mortgage given to correct a misdescription of the mortgaged property.15.24(c) A mortgage or other instrument that adds additional security for the same debt 15.25for which mortgage registry tax has been paid.15.26(d) A contract for the conveyance of any interest in real property, including a 15.27contract for deed.15.28(e) A mortgage secured by real property subject to the minerals production tax of 15.29sections 
         298.24 to 
         298.28.15.30(f) The principal amount of a mortgage loan made under a low and moderate 15.31income or other affordable housing program, if the mortgagee is a federal, state, or local 15.32government agency.15.33(g) Mortgages granted by fraternal benefit societies subject to section 
         64B.24.16.1(h) A mortgage amendment or extension, as defined in section 
         287.01.16.2(i) An agricultural mortgage if the proceeds of the loan secured by the mortgage are 16.3used to acquire or improve real property classified under section 
         273.13, subdivision 23, 16.4paragraph (a), or (b), clause (1), (2), or (3).16.5(j) A mortgage on an armory building as set forth in section 
         193.147.16.6EFFECTIVE DATE.This section is effective the day following final enactment.16.7    Sec. 2. Minnesota Statutes 2008, section 287.05, is amended by adding a subdivision 16.8to read:16.9    Subd. 9.Modification of mortgage.If a mortgage, or a document modifying a 16.10mortgage, contains more than one statement that purports to limit: the enforcement of 16.11the mortgage to a certain dollar amount; the tax imposed on the mortgage under this 16.12chapter; or the effect of a modifying document, including but not limited to the statements 16.13authorized in subdivisions 1, 1a, and 8, then the tax must be imposed based on the 16.14combined effect, if any, of all the statements.16.15EFFECTIVE DATE.This section is effective the day following final enactment.16.16    Sec. 3. Minnesota Statutes 2008, section 287.22, is amended to read:16.17287.22 EXEMPTIONS. 16.18    The tax imposed by section 
         287.21 does not apply to: 16.19    (1) an executory contract for the sale of real property under which the purchaser is 16.20entitled to or does take possession of the real property, or any assignment or cancellation 16.21of the contract; 16.22    (2) a mortgage or an amendment, assignment, extension, partial release, or 16.23satisfaction of a mortgage; 16.24    (3) a will; 16.25    (4) a plat; 16.26    (5) a lease, amendment of lease, assignment of lease, or memorandum of lease; 16.27    (6) a deed, instrument, or writing in which the United States or any agency or 16.28instrumentality thereof is the grantor, assignor, transferor, conveyor, grantee, or assignee; 16.29    (7) a deed for a cemetery lot or lots; 16.30    (8) a deed of distribution by a personal representative; 16.31    (9) a deed to or from a co-owner partitioning their undivided interest in the same 16.32piece of real property; 17.1    (10) a deed or other instrument of conveyance issued pursuant to a permanent school 17.2fund land exchange under section 
         92.121 and related laws; 17.3    (11) a referee's or sheriff's certificate of sale in a mortgage or lien foreclosure sale; 17.4    (12) a referee's, sheriff's, or certificate holder's certificate of redemption from a 17.5mortgage or lien foreclosure sale issued under section 580.23 or other statute applicable to 17.6redemption by an owner of real property; 17.7    (13) a deed, instrument, or writing which grants, creates, modifies, or terminates 17.8an easement; 17.9    (14) a decree of marriage dissolution, as defined in section 
         287.01, subdivision 4, 17.10or a deed or other instrument between the parties to the dissolution made pursuant to the 17.11terms of the decree; and 17.12    (15) a transfer on death deed under section 
         507.071, and any affidavit or other 17.13document to the extent it references a transfer on death deed. 17.14EFFECTIVE DATE.This section is effective the day following final enactment.17.15    Sec. 4. Minnesota Statutes 2008, section 287.25, is amended to read:17.16287.25 PAYMENT OF TAX; STAMPS.17.17    Except for documents filed electronically, the county board shall determine the 17.18method for collection of the tax imposed by section 287.21: 17.19    (1) The tax imposed by section 287.21 may be paid by the affixing of a documentary 17.20stamp or stamps in the amount of the tax to the document or instrument with respect to 17.21which the tax is paid, provided that the county board may permit the payment of the 17.22tax without the affixing of the documentary stamps and in such cases shall direct the 17.23treasurer to endorse a receipt for such tax upon the face of the document or instrument. 17.24Documents submitted electronically must have the deed tax data affixed electronically and 17.25the tax paid as provided in section 287.08. 17.26    (2) the tax imposed by section 
         287.21may must be paid in the manner prescribed by 17.27section 
         287.08 relating to payment of mortgage registration tax, and the treasurer must 17.28endorse a receipt for the tax on the face of the document or instrument. 17.29EFFECTIVE DATE.This section is effective the day following final enactment.17.30    Sec. 5. Minnesota Statutes 2008, section 295.56, is amended to read:17.31295.56 TRANSFER OF ACCOUNTS RECEIVABLE.17.32When a hospital or, surgical center,  health care provider, or wholesale drug 17.33distributor transfers, assigns, or sells accounts receivable to another person who is subject 18.1to tax under this chapter, liability for the tax on the accounts receivable is imposed on the 18.2transferee, assignee, or buyer of the accounts receivable. No liability for these accounts 18.3receivable is imposed on the transferor, assignor, or seller of the accounts receivable.18.4EFFECTIVE DATE.This section is effective the day following final enactment.18.5    Sec. 6. Minnesota Statutes 2008, section 295.57, subdivision 5, is amended to read:18.6    Subd. 5. Exemption for amounts paid for legend drugs. If a hospital, surgical 18.7center, or health care provider cannot determine the actual cost or reimbursement of 18.8legend drugs under the exemption provided in section 
         295.53, subdivision 1, paragraph 18.9(a), clause (6) (5), the following method must be used: 18.10A hospital, surgical center, or health care provider must determine the amount paid 18.11for legend drugs used during the month or quarter and multiply that amount by a ratio, 18.12the numerator of which is the total amount received for taxable patient services, and the 18.13denominator of which is the total amount received for all patient services, including 18.14amounts exempt under section 
         295.53, subdivision 1. The result represents the allowable 18.15exemption for the monthly or quarterly cost of drugs. 18.16EFFECTIVE DATE.This section is effective the day following final enactment.18.17    Sec. 7. Minnesota Statutes 2008, section 296A.21, subdivision 1, is amended to read:18.18    Subdivision 1. General rules. (a) The commissioner shall make determinations, 18.19corrections, assessments, and refunds with respect to taxes and fees under this chapter, 18.20including interest, additions to taxes, and assessable penalties. Except as otherwise 18.21provided in this section, the amount of taxes assessable must be assessed within 3-1/2 18.22years after the date the return is filed. For purposes of this section, a tax return filed before 18.23the last day prescribed by law for filing is considered to be filed on the last day.18.24(b) A claim for a refund of an overpayment of state tax or fees must be filed within 18.253-1/2 years from the date prescribed for filing the return, plus any extension of time 18.26granted for filing the return, but only if filed within the extended time; or the claim must 18.27be filed within one year from the date of an order assessing tax or fees, or from the date of 18.28a return filed by the commissioner, upon payment in full of the tax, fees, penalties, and 18.29interest shown on the order or return, whichever period expires later.18.30EFFECTIVE DATE.This section is effective the day following final enactment.18.31    Sec. 8. Minnesota Statutes 2008, section 297E.02, subdivision 4, is amended to read:19.1    Subd. 4. Pull-tab and tipboard tax. (a) A tax is imposed on the sale of each deal 19.2of pull-tabs and tipboards sold by a distributor. The rate of the tax is 1.7 percent of the 19.3ideal gross of the pull-tab or tipboard deal. The sales tax imposed by chapter 297A on the 19.4sale of the pull-tabs and tipboards by the distributor is imposed on the retail sales price 19.5less the tax imposed by this subdivision. The retail sale of pull-tabs or tipboards by the 19.6organization is exempt from taxes imposed by chapter 297A and is exempt from all local 19.7taxes and license fees except a fee authorized under section 
         349.16, subdivision 8.19.8(b) The liability for the tax imposed by this section is incurred when the pull-tabs 19.9and tipboards are delivered by the distributor to the customer or to a common or contract 19.10carrier for delivery to the customer, or when received by the customer's authorized 19.11representative at the distributor's place of business, regardless of the distributor's method 19.12of accounting or the terms of the sale.19.13The tax imposed by this subdivision is imposed on all sales of pull-tabs and 19.14tipboards, except the following:19.15(1) sales to the governing body of an Indian tribal organization for use on an Indian 19.16reservation;19.17(2) sales to distributors licensed under the laws of another state or of a province of 19.18Canada, as long as all statutory and regulatory requirements are met in the other state or 19.19province;19.20(3) sales of promotional tickets as defined in section 
         349.12; and19.21(4) pull-tabs and tipboards sold to an organization that sells pull-tabs and tipboards 19.22under the exemption from licensing in section 
         349.166, subdivision 2. A distributor shall 19.23require an organization conducting exempt gambling to show proof of its exempt status 19.24before making a tax-exempt sale of pull-tabs or tipboards to the organization. A distributor 19.25shall identify, on all reports submitted to the commissioner, all sales of pull-tabs and 19.26tipboards that are exempt from tax under this subdivision.19.27(c) A distributor having a liability of $120,000 $10,000 or more during a fiscal year 19.28ending June 30 must remit all liabilities in the subsequent calendar year by electronic 19.29means.19.30(d) Any customer who purchases deals of pull-tabs or tipboards from a distributor 19.31may file an annual claim for a refund or credit of taxes paid pursuant to this subdivision 19.32for unsold pull-tab and tipboard tickets. The claim must be filed with the commissioner on 19.33a form prescribed by the commissioner by March 20 of the year following the calendar 19.34year for which the refund is claimed. The refund must be filed as part of the customer's 19.35February monthly return. The refund or credit is equal to 1.7 percent of the face value 19.36of the unsold pull-tab or tipboard tickets, provided that the refund or credit will be 1.75 20.1percent of the face value of the unsold pull-tab or tipboard tickets for claims for a refund 20.2or credit of taxes filed on the February 2001 monthly return. The refund claimed will be 20.3applied as a credit against tax owing under this chapter on the February monthly return. If 20.4the refund claimed exceeds the tax owing on the February monthly return, that amount 20.5will be refunded. The amount refunded will bear interest pursuant to section 
         270C.40520.6from 90 days after the claim is filed.20.7EFFECTIVE DATE.This section is effective for payments due in calendar year 20.82010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, 20.92009, and in fiscal years thereafter.20.10    Sec. 9. Minnesota Statutes 2008, section 297E.06, is amended by adding a subdivision 20.11to read:20.12    Subd. 1a.Required signatures.The gambling manager and the chief executive 20.13officer of the organization, or their respective designees, and the person who completed 20.14the tax return must sign the tax return. The organization shall inform the commissioner of 20.15revenue in writing of the identity of the designees as soon as practicable in the form and 20.16manner prescribed by the commissioner.20.17EFFECTIVE DATE.This section is effective the day following final enactment.20.18    Sec. 10. Minnesota Statutes 2008, section 297E.11, subdivision 1, is amended to read:20.19    Subdivision 1. General rule. Except as otherwise provided in this chapter, the 20.20amount of taxes assessable must be assessed within 3-1/2 years after the return is filed, 20.21whether or not the return is filed on or after the date prescribed. A return must not be 20.22treated as filed until it is in processible form. A return is in processible form if it is filed 20.23on a permitted form and contains sufficient data to identify the taxpayer and permit the 20.24mathematical verification of the tax liability shown on the return. For purposes of this 20.25section, a tax return filed before the last day prescribed by law for filing is considered to 20.26be filed on the last day.20.27EFFECTIVE DATE.This section is effective the day following final enactment.20.28    Sec. 11. Minnesota Statutes 2008, section 297F.09, subdivision 7, is amended to read:20.29    Subd. 7. Electronic payment. A cigarette or tobacco products distributor having a 20.30liability of $120,000$10,000 or more during a fiscal year ending June 30 must remit all 20.31liabilities in the subsequent calendar year by electronic means.21.1EFFECTIVE DATE.This section is effective for payments due in calendar year 21.22010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, 21.32009, and in fiscal years thereafter.21.4    Sec. 12. Minnesota Statutes 2008, section 297G.09, subdivision 6, is amended to read:21.5    Subd. 6. Electronic payments. A licensed brewer, importer, or wholesaler having 21.6an excise tax liability of $120,000$10,000 or more during a fiscal year ending June 30 21.7must remit all excise tax liabilities in the subsequent calendar year by electronic means.21.8EFFECTIVE DATE.This section is effective for payments due in calendar year 21.92010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, 21.102009, and in fiscal years thereafter.21.11    Sec. 13. Minnesota Statutes 2008, section 297I.30, is amended by adding a subdivision 21.12to read:21.13    Subd. 9.Extensions for filing returns.When, in the commissioner's judgment, 21.14good cause exists, the commissioner may extend the time for filing returns for not more 21.15than six months.21.16EFFECTIVE DATE.This section is effective the day following final enactment.21.17    Sec. 14. Minnesota Statutes 2008, section 297I.35, subdivision 2, is amended to read:21.18    Subd. 2. Electronic payments. If the aggregate amount of tax and surcharges 21.19due under this chapter during a calendar year is equal to or exceeds $120,000 $10,000, 21.20or if the taxpayer is required to make payment of any other tax to the commissioner by 21.21electronic means, then all tax and surcharge payments in the subsequent calendar year 21.22must be paid by electronic means.21.23EFFECTIVE DATE.This section is effective for payments due in calendar year 21.242010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, 21.252009, and in fiscal years thereafter.21.26    Sec. 15. Minnesota Statutes 2008, section 298.28, subdivision 11, is amended to read:21.27    Subd. 11. Remainder. (a) The proceeds of the tax imposed by section 
         298.2421.28which remain after the distributions and payments in subdivisions 2 to 10a, as certified 21.29by the commissioner of revenue, and paragraphs (b), (c), and (d), and (e) have been 21.30made, together with interest earned on all money distributed under this section prior to 21.31distribution, shall be divided between the taconite environmental protection fund created 22.1in section 
         298.223 and the Douglas J. Johnson economic protection trust fund created in 22.2section 
         298.292 as follows: Two-thirds to the taconite environmental protection fund and 22.3one-third to the Douglas J. Johnson economic protection trust fund. The proceeds shall be 22.4placed in the respective special accounts.22.5(b) There shall be distributed to each city, town, and county the amount that it 22.6received under section 
         294.26 in calendar year 1977; provided, however, that the amount 22.7distributed in 1981 to the unorganized territory number 2 of Lake County and the town 22.8of Beaver Bay based on the between-terminal trackage of Erie Mining Company will be 22.9distributed in 1982 and subsequent years to the unorganized territory number 2 of Lake 22.10County and the towns of Beaver Bay and Stony River based on the miles of track of Erie 22.11Mining Company in each taxing district.22.12(c) There shall be distributed to the Iron Range Resources and Rehabilitation Board 22.13the amounts it received in 1977 under section 
         298.22. The amount distributed under 22.14this paragraph shall be expended within or for the benefit of the taconite assistance area 22.15defined in section 
         273.1341.22.16(d) There shall be distributed to each school district 62 percent of the amount that it 22.17received under section 
         294.26 in calendar year 1977. 22.18(e) In 2003 only, $100,000 must be distributed to a township located in a taconite 22.19tax relief area as defined in section 273.134, paragraph (a), that received $119,259 of 22.20homestead and agricultural credit aid and $182,014 in local government aid in 2001.22.21EFFECTIVE DATE.This section is effective the day following final enactment.22.22    Sec. 16. Minnesota Statutes 2008, section 473.843, subdivision 3, is amended to read:22.23    Subd. 3. Payment of fee. On or before the 20th day of each month each operator 22.24shall pay the fee due under this section for the previous month, using a form provided 22.25by the commissioner of revenue.22.26An operator having a fee of $120,000 $10,000 or more during a fiscal year ending 22.27June 30 must pay all fees in the subsequent calendar year by electronic means.22.28EFFECTIVE DATE.This section is effective for payments due in calendar year 22.292010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, 22.302009, and in fiscal years thereafter.22.31    Sec. 17.  REPEALER.22.32Minnesota Statutes 2008, sections 287.26; 287.27, subdivision 1; and 298.28, 22.33subdivisions 11a and 13, are repealed.23.1EFFECTIVE DATE.This section is effective the day following final enactment.23.2ARTICLE 423.3PROPERTY TAXES AND AIDS23.4    Section 1. Minnesota Statutes 2008, section 273.11, subdivision 23, is amended to read:23.5    Subd. 23. First tier valuation limit; agricultural homestead property. (a) 23.6Beginning with assessment year 2006, The commissioner of revenue shall annually certify 23.7the first tier limit for agricultural homestead property as. For assessment year 2010, the 23.8limit is $1,140,000. Beginning with assessment year 2011, the limit is the product of (i) 23.9$600,000 the first tier limit for the preceding assessment year, and (ii) the ratio of the 23.10statewide average taxable market value of agricultural property per acre of deeded farm 23.11land in the preceding assessment year to the statewide average taxable market value of 23.12agricultural property per acre of deeded farm land for the second preceding assessment 23.13year 2004. The limit shall be rounded to the nearest $10,000.23.14(b) For the purposes of this subdivision, "agricultural property" means all class 23.152 2a property under section 
         273.13, subdivision 23, except for (1) timberland, (2) a 23.16landing area or public access area of a privately owned public use airport, and (3) property 23.17consisting of the house, garage, and immediately surrounding one acre of land of an 23.18agricultural homestead.23.19(c) The commissioner shall certify the limit by January 2 of each assessment year, 23.20except that for assessment year 2006 the commissioner shall certify the limit by June 23.211, 2006.23.22EFFECTIVE DATE.This section is effective for taxes payable in 2011 and 23.23thereafter.23.24    Sec. 2. Minnesota Statutes 2008, section 273.111, subdivision 4, is amended to read:23.25    Subd. 4. Determination of value. (a) The value of any real estate described 23.26in subdivision 3 shall upon timely application by the owner, in the manner provided 23.27in subdivision 8, be determined solely with reference to its appropriate agricultural 23.28classification and value notwithstanding sections 
         272.03, subdivision 8, and 
         273.11. 23.29Furthermore, the assessor shall not consider any added values resulting from 23.30nonagricultural factors. In order to account for the presence of nonagricultural influences 23.31that may affect the value of agricultural land, the commissioner of revenue shall develop a 23.32fair and uniform method of determining agricultural values for each county in the state 23.33that are consistent with this subdivision. The commissioner shall annually assign the 24.1resulting values to each county, and these values shall be used as the basis for determining 24.2the agricultural value for all properties in the county qualifying for tax deferment under 24.3this section.24.4    (b) In the case of property qualifying for tax deferment only under subdivision 3a, 24.5the value shall be based on the value in effect for assessment year 2008, multiplied by 24.6the ratio of the total taxable market value of all property in the county for the current 24.7assessment year divided by the total taxable market value of all property in the county for 24.8assessment year 2008 assessor shall not consider the presence of commercial, industrial, 24.9residential, or seasonal recreational land use influences in determining the value for ad 24.10valorem tax purposes; provided that in no case shall the value exceed the value prescribed 24.11by the commissioner of revenue for class 2a tillable property in that county.24.12EFFECTIVE DATE.This section is effective for assessment year 2009 and 24.13thereafter.24.14    Sec. 3. Minnesota Statutes 2008, section 273.1115, subdivision 2, is amended to read:24.15    Subd. 2. Requirement. Real estate is entitled to valuation under this section only if 24.16all of the following requirements are met:24.17    (1) the property is classified as class 1a, 1b, 2a, or 2b property under section 
         273.13, 24.18subdivisions 22 and 23, or the property is classified as class 2e under section 273.13, 24.19subdivision 23, and immediately before being classified as class 2e was classified as 24.20class 1a or 1b;24.21    (2) the property is at least ten contiguous acres, when the application is filed under 24.22subdivision 3;24.23    (3) the owner has filed a completed application for deferment as specified in 24.24subdivision 3 with the county assessor in the county in which the property is located;24.25    (4) there are no delinquent taxes on the property; and24.26    (5) a covenant on the land restricts its use as provided in subdivision 3, clause (4).24.27EFFECTIVE DATE.This section is effective for taxes payable in 2010 and 24.28thereafter.24.29    Sec. 4. Minnesota Statutes 2008, section 273.1231, subdivision 8, is amended to read:24.30    Subd. 8. Utility property. "Utility property" means property appraised and 24.31classified for tax purposes by order of the commissioner of revenue under sections 
         273.3324.32to 
         273.3711.24.33EFFECTIVE DATE.This section is effective the day following final enactment.25.1    Sec. 5. Minnesota Statutes 2008, section 273.124, subdivision 3, is amended to read:25.2    Subd. 3. Cooperatives and charitable corporations; homestead and other 25.3property. (a) When property is owned by a corporation or association organized under 25.4chapter 308A or 308B, and each person who owns a share or shares in the corporation or 25.5association is entitled to occupy a building on the property, or a unit within a building 25.6on the property, the corporation or association may claim homestead treatment for each 25.7dwelling, or for each unit in the case of a building containing several dwelling units, or for 25.8the part of the value of the building occupied by a shareholder. Each building or unit must 25.9be designated by legal description or number. The net tax capacity of each building or 25.10unit that qualifies for assessment as a homestead under this subdivision must include not 25.11more than one-half acre of land, if platted, nor more than 80 acres if unplatted. The net 25.12tax capacity of the property is the sum of the net tax capacities of each of the respective 25.13buildings or units comprising the property, including the net tax capacity of each unit's 25.14or building's proportionate share of the land and any common buildings. To qualify for 25.15the treatment provided by this subdivision, the corporation or association must be wholly 25.16owned by persons having a right to occupy a building or unit owned by the corporation 25.17or association. A charitable corporation organized under the laws of Minnesota and not 25.18otherwise exempt thereunder with no outstanding stock qualifies for homestead treatment 25.19with respect to member residents of the dwelling units who have purchased and hold 25.20residential participation warrants entitling them to occupy the units.25.21(b) To the extent provided in paragraph (a), a cooperative or corporation organized 25.22under chapter 308A or 308B may obtain separate assessment and valuation, and separate 25.23property tax statements for each residential homestead, residential nonhomestead, or for 25.24each seasonal residential recreational building or unit not used for commercial purposes. 25.25The appropriate class rates under section 
         273.13 shall be applicable as if each building or 25.26unit were a separate tax parcel; provided, however, that the tax parcel which exists at the 25.27time the cooperative or corporation makes application under this subdivision shall be a 25.28single parcel for purposes of property taxes or the enforcement and collection thereof, 25.29other than as provided in paragraph (a) or this paragraph.25.30(c) A member of a corporation or association may initially obtain the separate 25.31assessment and valuation and separate property tax statements, as provided in paragraph 25.32(b), by applying to the assessor by June 30 of the assessment year.25.33(d) When a building, or dwelling units within a building, no longer qualify under 25.34paragraph (a) or (b), the current owner must notify the assessor within 30 days. Failure to 25.35notify the assessor within 30 days shall result in the loss of benefits under paragraph (a) or 25.36(b) for taxes payable in the year that the failure is discovered. For these purposes, "benefits 26.1under paragraph (a) or (b)" means the difference in the net tax capacity of the building or 26.2units which no longer qualify as computed under paragraph (a) or (b) and as computed 26.3under the otherwise applicable law, times the local tax rate applicable to the building for 26.4that taxes payable year. Upon discovery of a failure to notify, the assessor shall inform the 26.5auditor of the difference in net tax capacity for the building or buildings in which units no 26.6longer qualify, and the auditor shall calculate the benefits under paragraph (a) or (b). Such 26.7amount, plus a penalty equal to 100 percent of that amount, shall then be demanded of the 26.8building's owner. The property owner may appeal the county's determination by serving 26.9copies of a petition for review with county officials as provided in section 
         278.01 and 26.10filing a proof of service as provided in section 
         278.01 with the Minnesota Tax Court within 26.1160 days of the date of the notice from the county. The appeal shall be governed by the Tax 26.12Court procedures provided in chapter 271, for cases relating to the tax laws as defined in 26.13section 
         271.01, subdivision 5; disregarding sections 
         273.125, subdivision 5, and 
         278.03, 26.14but including section 
         278.05, subdivision 2. If the amount of the benefits under paragraph 26.15(a) or (b) and penalty are not paid within 60 days, and if no appeal has been filed, the 26.16county auditor shall certify the amount of the benefit and penalty to the succeeding year's 26.17tax list to be collected as part of the property taxes on the affected property.26.18    Sec. 6. Minnesota Statutes 2008, section 273.124, subdivision 3a, is amended to read:26.19    Subd. 3a. Manufactured home park cooperative. When a manufactured home 26.20park is owned by a corporation or association organized under chapter 308A or 308B, 26.21and each person who owns a share or shares in the corporation or association is entitled 26.22to occupy a lot within the park, the corporation or association may claim homestead 26.23treatment for each lot occupied by a shareholder. Each lot must be designated by legal 26.24description or number, and each lot is limited to not more than one-half acre of land for 26.25each homestead. The manufactured home park shall be valued and assessed as if it were 26.26homestead property within class 1 if all of the following criteria are met:26.27(1) the occupant is using the property as a permanent residence;26.28(2) the occupant or the cooperative association is paying the ad valorem property 26.29taxes and any special assessments levied against the land and structure either directly, or 26.30indirectly through dues to the corporation; and26.31(3) the corporation or association organized under chapter 308A or 308B is wholly 26.32owned by persons having a right to occupy a lot owned by the corporation or association.26.33A charitable corporation, organized under the laws of Minnesota with no outstanding 26.34stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt 26.35status, qualifies for homestead treatment with respect to member residents of the 27.1manufactured home park who hold residential participation warrants entitling them to 27.2occupy a lot in the manufactured home park.27.3    Sec. 7. Minnesota Statutes 2008, section 273.124, subdivision 13, is amended to read:27.4    Subd. 13.  Homestead application. (a) A person who meets the homestead 27.5requirements under subdivision 1 must file a homestead application with the county 27.6assessor to initially obtain homestead classification. 27.7    (b) The format and contents of a uniform homestead application shall be prescribed 27.8by the commissioner of revenue. The application must clearly inform the taxpayer that 27.9this application must be signed by all owners who occupy the property or by the qualifying 27.10relative and returned to the county assessor in order for the property to receive homestead 27.11treatment. 27.12    (c) Every property owner applying for homestead classification must furnish to the 27.13county assessor the Social Security number of each occupant who is listed as an owner 27.14of the property on the deed of record, the name and address of each owner who does not 27.15occupy the property, and the name and Social Security number of each owner's spouse who 27.16occupies the property. The application must be signed by each owner who occupies the 27.17property and by each owner's spouse who occupies the property, or, in the case of property 27.18that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative. 27.19    If a property owner occupies a homestead, the property owner's spouse may not 27.20claim another property as a homestead unless the property owner and the property owner's 27.21spouse file with the assessor an affidavit or other proof required by the assessor stating that 27.22the property qualifies as a homestead under subdivision 1, paragraph (e). 27.23    Owners or spouses occupying residences owned by their spouses and previously 27.24occupied with the other spouse, either of whom fail to include the other spouse's name 27.25and Social Security number on the homestead application or provide the affidavits or 27.26other proof requested, will be deemed to have elected to receive only partial homestead 27.27treatment of their residence. The remainder of the residence will be classified as 27.28nonhomestead residential. When an owner or spouse's name and Social Security number 27.29appear on homestead applications for two separate residences and only one application is 27.30signed, the owner or spouse will be deemed to have elected to homestead the residence for 27.31which the application was signed. 27.32    The Social Security numbers, state or federal tax returns or tax return information, 27.33including the federal income tax schedule F required by this section, or affidavits or other 27.34proofs of the property owners and spouses submitted under this or another section to 27.35support a claim for a property tax homestead classification are private data on individuals 28.1as defined by section 
         13.02, subdivision 12, but, notwithstanding that section, the private 28.2data may be disclosed to the commissioner of revenue, or, for purposes of proceeding 28.3under the Revenue Recapture Act to recover personal property taxes owing, to the county 28.4treasurer. 28.5    (d) If residential real estate is occupied and used for purposes of a homestead by 28.6a relative of the owner and qualifies for a homestead under subdivision 1, paragraph 28.7(c) or (d), in order for the property to receive homestead status, a homestead application 28.8must be filed with the assessor. The application must be signed by each relative of an 28.9owner who occupies the property and by each relative's spouse who also occupies the 28.10property. The Social Security number of each relative and spouse of a relative occupying 28.11the property shall be required on the homestead application filed under this subdivision. 28.12If a different relative of the owner subsequently occupies the property, the owner of the 28.13property must notify the assessor within 30 days of the change in occupancy. The Social 28.14Security number of a relative or relative's spouse occupying the property is private data 28.15on individuals as defined by section 
         13.02, subdivision 12, but may be disclosed to the 28.16commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture 28.17Act to recover personal property taxes owing, to the county treasurer.28.18    (e) The homestead application shall also notify the property owners that the 28.19application filed under this section will not be mailed annually and that if the property 28.20is granted homestead status for any assessment year, that same property shall remain 28.21classified as homestead until the property is sold or transferred to another person, or 28.22the owners, the spouse of the owner, or the relatives no longer use the property as their 28.23homestead. Upon the sale or transfer of the homestead property, a certificate of value must 28.24be timely filed with the county auditor as provided under section 
         272.115. Failure to 28.25notify the assessor within 30 days that the property has been sold, transferred, or that the 28.26owner, the spouse of the owner, or the relative is no longer occupying the property as a 28.27homestead, shall result in the penalty provided under this subdivision and the property 28.28will lose its current homestead status.28.29    (f) If the homestead application is not returned within 30 days, the county will send a 28.30second application to the present owners of record. The notice of proposed property taxes 28.31prepared under section 
         275.065, subdivision 3, shall reflect the property's classification. If 28.32a homestead application has not been filed with the county by December 15, the assessor 28.33shall classify the property as nonhomestead for the current assessment year for taxes 28.34payable in the following year, provided that the owner may be entitled to receive the 28.35homestead classification by proper application under section 
         375.192.29.1    (g) At the request of the commissioner, each county must give the commissioner a 29.2list that includes the name and Social Security number of each occupant of homestead 29.3property who is the property owner, property owner's spouse, qualifying relative of a 29.4property owner, or a spouse of a qualifying relative. The commissioner shall use the 29.5information provided on the lists as appropriate under the law, including for the detection 29.6of improper claims by owners, or relatives of owners, under chapter 290A.29.7    (h) If the commissioner finds that a property owner may be claiming a fraudulent 29.8homestead, the commissioner shall notify the appropriate counties. Within 90 days of 29.9the notification, the county assessor shall investigate to determine if the homestead 29.10classification was properly claimed. If the property owner does not qualify, the county 29.11assessor shall notify the county auditor who will determine the amount of homestead 29.12benefits that had been improperly allowed. For the purpose of this section, "homestead 29.13benefits" means the tax reduction resulting from the classification as a homestead under 29.14section 
         273.13, the taconite homestead credit under section 
         273.135, the residential 29.15homestead and agricultural homestead credits under section 
         273.1384, and the 29.16supplemental homestead credit under section 
         273.1391.29.17    The county auditor shall send a notice to the person who owned the affected property 29.18at the time the homestead application related to the improper homestead was filed, 29.19demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent 29.20of the homestead benefits. The person notified may appeal the county's determination 29.21by serving copies of a petition for review with county officials as provided in section 29.22278.01
          and filing proof of service as provided in section 
         278.01 with the Minnesota Tax 29.23Court within 60 days of the date of the notice from the county. Procedurally, the appeal 29.24is governed by the provisions in chapter 271 which apply to the appeal of a property tax 29.25assessment or levy, but without requiring any prepayment of the amount in controversy. If 29.26the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal 29.27has been filed, the county auditor shall certify the amount of taxes and penalty to the county 29.28treasurer. The county treasurer will add interest to the unpaid homestead benefits and 29.29penalty amounts at the rate provided in section 
         279.03 for real property taxes becoming 29.30delinquent in the calendar year during which the amount remains unpaid. Interest may be 29.31assessed for the period beginning 60 days after demand for payment was made.29.32    If the person notified is the current owner of the property, the treasurer may add the 29.33total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes 29.34otherwise payable on the property by including the amounts on the property tax statements 29.35under section 
         276.04, subdivision 3. The amounts added under this paragraph to the ad 29.36valorem taxes shall include interest accrued through December 31 of the year preceding 30.1the taxes payable year for which the amounts are first added. These amounts, when added 30.2to the property tax statement, become subject to all the laws for the enforcement of real or 30.3personal property taxes for that year, and for any subsequent year.30.4    If the person notified is not the current owner of the property, the treasurer may 30.5collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of 30.6the powers granted in sections 
         277.20 and 
         277.21 without exclusion, to enforce payment 30.7of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent 30.8tax obligations of the person who owned the property at the time the application related 30.9to the improperly allowed homestead was filed. The treasurer may relieve a prior owner 30.10of personal liability for the homestead benefits, penalty, interest, and costs, and instead 30.11extend those amounts on the tax lists against the property as provided in this paragraph 30.12to the extent that the current owner agrees in writing. On all demands, billings, property 30.13tax statements, and related correspondence, the county must list and state separately the 30.14amounts of homestead benefits, penalty, interest and costs being demanded, billed or 30.15assessed.30.16    (i) Any amount of homestead benefits recovered by the county from the property 30.17owner shall be distributed to the county, city or town, and school district where the 30.18property is located in the same proportion that each taxing district's levy was to the total 30.19of the three taxing districts' levy for the current year. Any amount recovered attributable 30.20to taconite homestead credit shall be transmitted to the St. Louis County auditor to be 30.21deposited in the taconite property tax relief account. Any amount recovered that is 30.22attributable to supplemental homestead credit is to be transmitted to the commissioner of 30.23revenue for deposit in the general fund of the state treasury. The total amount of penalty 30.24collected must be deposited in the county general fund.30.25    (j) If a property owner has applied for more than one homestead and the county 30.26assessors cannot determine which property should be classified as homestead, the county 30.27assessors will refer the information to the commissioner. The commissioner shall make 30.28the determination and notify the counties within 60 days.30.29    (k) In addition to lists of homestead properties, the commissioner may ask the 30.30counties to furnish lists of all properties and the record owners. The Social Security 30.31numbers and federal identification numbers that are maintained by a county or city 30.32assessor for property tax administration purposes, and that may appear on the lists retain 30.33their classification as private or nonpublic data; but may be viewed, accessed, and used by 30.34the county auditor or treasurer of the same county for the limited purpose of assisting the 30.35commissioner in the preparation of microdata samples under section 
         270C.12. 31.1    (l) On or before April 30 each year beginning in 2007, each county must provide the 31.2commissioner with the following data for each parcel of homestead property by electronic 31.3means as defined in section 
         289A.02, subdivision 8: 31.4    (i) the property identification number assigned to the parcel for purposes of taxes 31.5payable in the current year; 31.6    (ii) the name and Social Security number of each occupant of homestead property 31.7who is the property owner, property owner's spouse, qualifying relative of a property 31.8owner, or spouse of a qualifying relative; 31.9    (iii) the classification of the property under section 
         273.13 for taxes payable in the 31.10current year and in the prior year; 31.11    (iv) an indication of whether the property was classified as a homestead for taxes 31.12payable in the current year because of occupancy by a relative of the owner or by a 31.13spouse of a relative; 31.14    (v) the property taxes payable as defined in section 
         290A.03, subdivision 13, for the 31.15current year and the prior year; 31.16    (vi) the market value of improvements to the property first assessed for tax purposes 31.17for taxes payable in the current year; 31.18    (vii) the assessor's estimated market value assigned to the property for taxes payable 31.19in the current year and the prior year; 31.20    (viii) the taxable market value assigned to the property for taxes payable in the 31.21current year and the prior year; 31.22    (ix) whether there are delinquent property taxes owing on the homestead; 31.23    (x) the unique taxing district in which the property is located; and 31.24    (xi) such other information as the commissioner decides is necessary. 31.25    The commissioner shall use the information provided on the lists as appropriate 31.26under the law, including for the detection of improper claims by owners, or relatives 31.27of owners, under chapter 290A. 31.28EFFECTIVE DATE.This section is effective for applications received after June 31.2930, 2009.31.30    Sec. 8. Minnesota Statutes 2008, section 273.124, subdivision 21, is amended to read:31.31    Subd. 21. Trust property; homestead. Real or personal property held by a trustee 31.32under a trust is eligible for classification as homestead property if: the property satisfies 31.33the requirements of paragraph (a), (b), (c), or (d).31.34    (1) (a) The grantor or surviving spouse of the grantor of the trust occupies and 31.35uses the property as a homestead;.32.1    (2) (b) A relative or surviving relative of the grantor who meets the requirements 32.2of subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1, 32.3paragraph (d), in the case of agricultural property, occupies and uses the property as 32.4a homestead;.32.5    (3) (c) A family farm corporation, joint farm venture, limited liability company, or 32.6partnership operating a family farm in which the grantor or the grantor's surviving spouse 32.7is a shareholder, member, or partner rents the property,; and, either (1) a shareholder, 32.8member, or partner of the corporation, joint farm venture, limited liability company, or 32.9partnership occupies and uses the property as a homestead,; or is actively farming, (2) the 32.10property is at least 40 acres, including undivided government lots and correctional 40's, and 32.11a shareholder, member, or partner of the tenant-entity is actively farming the property on 32.12behalf of the corporation, joint farm venture, limited liability company, or partnership; or.32.13    (4) (d) A person who has received homestead classification for property taxes 32.14payable in 2000 on the basis of an unqualified legal right under the terms of the trust 32.15agreement to occupy the property as that person's homestead and who continues to use the 32.16property as a homestead; or, a person who received the homestead classification for taxes 32.17payable in 2005 under clause (3)paragraph (c) who does not qualify under clause (3)32.18paragraph (c)  for taxes payable in 2006 or thereafter but who continues to qualify under 32.19clause (3)paragraph (c)  as it existed for taxes payable in 2005.32.20    For purposes of this subdivision, "grantor" is defined as the person creating or 32.21establishing a testamentary, inter Vivos, revocable or irrevocable trust by written 32.22instrument or through the exercise of a power of appointment.32.23EFFECTIVE DATE.This section is effective the day following final enactment.32.24    Sec. 9. Minnesota Statutes 2008, section 273.13, subdivision 23, is amended to read:32.25    Subd. 23.  Class 2. (a) An agricultural homestead consists of class 2a agricultural 32.26land that is homesteaded, along with any class 2b rural vacant land that is contiguous to 32.27the class 2a land under the same ownership. The market value of the house and garage 32.28and immediately surrounding one acre of land has the same class rates as class 1a or 1b 32.29property under subdivision 22. The value of the remaining land including improvements 32.30up to the first tier valuation limit of agricultural homestead property has a net class rate 32.31of 0.5 percent of market value. The remaining property over the first tier has a class rate 32.32of one percent of market value. For purposes of this subdivision, the "first tier valuation 32.33limit of agricultural homestead property" and "first tier" means the limit certified under 32.34section 
         273.11, subdivision 23. 33.1    (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that 33.2are agricultural land and buildings. Class 2a property has a net class rate of one percent of 33.3market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a 33.4property may contain property that would otherwise be classified as 2b, including but not 33.5limited to sloughs, wooded wind shelters, acreage abutting ditches, and other similar land 33.6impractical for the assessor to value separately from the rest of the property.33.7    An assessor may classify the part of a parcel described in this subdivision that is used 33.8for agricultural purposes as class 2a and the remainder in the class appropriate to its use.33.9    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof, 33.10that are unplatted real estate, rural in character and not used for agricultural purposes, 33.11including land used for growing trees for timber, lumber, and wood and wood products, 33.12that is not improved with a structure. The presence of a minor, ancillary nonresidential 33.13structure as defined by the commissioner of revenue does not disqualify the property from 33.14classification under this paragraph. Any parcel of 20 acres or more improved with a 33.15structure that is not a minor, ancillary nonresidential structure must be split-classified, and 33.16ten acres must be assigned to the split parcel containing the structure. Class 2b property 33.17has a net class rate of one percent of market value unless it is part of an agricultural 33.18homestead under paragraph (a), or qualifies as class 2c under paragraph (d).33.19    (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 33.20acres statewide per taxpayer that is being managed under a forest management plan that 33.21meets the requirements of chapter 290C, but is not enrolled in the sustainable forest 33.22resource management incentive program. It has a class rate of .65 percent, provided 33.23that the owner of the property must apply to the assessor to receive the reduced class in 33.24order for the property to initially qualify for the reduced rate and provide the information 33.25required by the assessor to verify that the property qualifies for the reduced rate. If the 33.26assessor receives the application and information before May 1 in an assessment year, 33.27the property qualifies beginning with that assessment year. If the assessor receives the 33.28application and information after April 30 in an assessment year, the property qualifies 33.29beginning with the next assessment year. The commissioner of natural resources must 33.30concur that the land is qualified. The commissioner of natural resources shall annually 33.31provide county assessors verification information on a timely basis. The presence of a 33.32minor, ancillary nonresidential structure as defined by the commissioner of revenue does 33.33not disqualify the property from classification under this paragraph.33.34    (e) Agricultural land as used in this section means contiguous acreage of ten 33.35acres or more, used during the preceding year for agricultural purposes. "Agricultural 33.36purposes" as used in this section means the raising, cultivation, drying, or storage of 34.1agricultural products for sale, or the storage of machinery or equipment used in support 34.2of agricultural production by the same farm entity. For a property to be classified as 34.3agricultural based only on the drying or storage of agricultural products, the products 34.4being dried or stored must have been produced by the same farm entity as the entity 34.5operating the drying or storage facility. "Agricultural purposes" also includes enrollment 34.6in the Reinvest in Minnesota program under sections 
         103F.501 to 
         103F.535 or the federal 34.7Conservation Reserve Program as contained in Public Law 99-198 or a similar state 34.8or federal conservation program if the property was classified as agricultural (i) under 34.9this subdivision for the assessment year 2002 or (ii) in the year prior to its enrollment. 34.10Agricultural classification shall not be based upon the market value of any residential 34.11structures on the parcel or contiguous parcels under the same ownership. 34.12    (f) Real estate of less than ten acres, which is exclusively or intensively used for 34.13raising or cultivating agricultural products, shall be considered as agricultural land. To 34.14qualify under this paragraph, property that includes a residential structure must be used 34.15intensively for one of the following purposes:34.16    (i) for drying or storage of grain or storage of machinery or equipment used to 34.17support agricultural activities on other parcels of property operated by the same farming 34.18entity;34.19    (ii) as a nursery, provided that only those acres used to produce nursery stock are 34.20considered agricultural land;34.21    (iii) for livestock or poultry confinement, provided that land that is used only for 34.22pasturing and grazing does not qualify; or34.23    (iv) for market farming; for purposes of this paragraph, "market farming" means the 34.24cultivation of one or more fruits or vegetables or production of animal or other agricultural 34.25products for sale to local markets by the farmer or an organization with which the farmer 34.26is affiliated. 34.27    (g) Land shall be classified as agricultural even if all or a portion of the agricultural 34.28use of that property is the leasing to, or use by another person for agricultural purposes. 34.29    Classification under this subdivision is not determinative for qualifying under 34.30section 
         273.111. 34.31    (h) The property classification under this section supersedes, for property tax 34.32purposes only, any locally administered agricultural policies or land use restrictions that 34.33define minimum or maximum farm acreage. 34.34    (i) The term "agricultural products" as used in this subdivision includes production 34.35for sale of: 35.1    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 35.2animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, 35.3bees, and apiary products by the owner; 35.4    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned 35.5for agricultural use; 35.6    (3) the commercial boarding of horses if the boarding is done in conjunction with 35.7raising or cultivating agricultural products as defined in clause (1); 35.8    (4) property which is owned and operated by nonprofit organizations used for 35.9equestrian activities, excluding racing; 35.10    (5) game birds and waterfowl bred and raised for use on a shooting preserve licensed 35.11under section 
         97A.115; 35.12    (6) insects primarily bred to be used as food for animals; 35.13    (7) trees, grown for sale as a crop, including short rotation woody crops, and not 35.14sold for timber, lumber, wood, or wood products; and 35.15    (8) maple syrup taken from trees grown by a person licensed by the Minnesota 35.16Department of Agriculture under chapter 28A as a food processor. 35.17    (j) If a parcel used for agricultural purposes is also used for commercial or industrial 35.18purposes, including but not limited to: 35.19    (1) wholesale and retail sales; 35.20    (2) processing of raw agricultural products or other goods; 35.21    (3) warehousing or storage of processed goods; and 35.22    (4) office facilities for the support of the activities enumerated in clauses (1), (2), 35.23and (3), 35.24the assessor shall classify the part of the parcel used for agricultural purposes as class 35.251b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its 35.26use. The grading, sorting, and packaging of raw agricultural products for first sale is 35.27considered an agricultural purpose. A greenhouse or other building where horticultural 35.28or nursery products are grown that is also used for the conduct of retail sales must be 35.29classified as agricultural if it is primarily used for the growing of horticultural or nursery 35.30products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of 35.31those products. Use of a greenhouse or building only for the display of already grown 35.32horticultural or nursery products does not qualify as an agricultural purpose. 35.33    (k) The assessor shall determine and list separately on the records the market value 35.34of the homestead dwelling and the one acre of land on which that dwelling is located. If 35.35any farm buildings or structures are located on this homesteaded acre of land, their market 35.36value shall not be included in this separate determination. 36.1    (k) (l) Class 2d airport landing area consists of a landing area or public access area 36.2of a privately owned public use airport. It has a class rate of one percent of market value. 36.3To qualify for classification under this paragraph, a privately owned public use airport 36.4must be licensed as a public airport under section 
         360.018. For purposes of this paragraph, 36.5"landing area" means that part of a privately owned public use airport properly cleared, 36.6regularly maintained, and made available to the public for use by aircraft and includes 36.7runways, taxiways, aprons, and sites upon which are situated landing or navigational aids. 36.8A landing area also includes land underlying both the primary surface and the approach 36.9surfaces that comply with all of the following: 36.10    (i) the land is properly cleared and regularly maintained for the primary purposes of 36.11the landing, taking off, and taxiing of aircraft; but that portion of the land that contains 36.12facilities for servicing, repair, or maintenance of aircraft is not included as a landing area; 36.13    (ii) the land is part of the airport property; and 36.14    (iii) the land is not used for commercial or residential purposes. 36.15The land contained in a landing area under this paragraph must be described and certified 36.16by the commissioner of transportation. The certification is effective until it is modified, 36.17or until the airport or landing area no longer meets the requirements of this paragraph. 36.18For purposes of this paragraph, "public access area" means property used as an aircraft 36.19parking ramp, apron, or storage hangar, or an arrival and departure building in connection 36.20with the airport. 36.21    (l) (m) Class 2e consists of land with a commercial aggregate deposit that is not 36.22actively being mined and is not otherwise classified as class 2a or 2b. It has a class rate of 36.23one percent of market value. To qualify for classification under this paragraph, the property 36.24must be at least ten contiguous acres in size and the owner of the property must record with 36.25the county recorder of the county in which the property is located an affidavit containing:36.26    (1) a legal description of the property;36.27    (2) a disclosure that the property contains a commercial aggregate deposit that is not 36.28actively being mined but is present on the entire parcel enrolled;36.29    (3) documentation that the conditional use under the county or local zoning 36.30ordinance of this property is for mining; and36.31    (4) documentation that a permit has been issued by the local unit of government 36.32or the mining activity is allowed under local ordinance. The disclosure must include a 36.33statement from a registered professional geologist, engineer, or soil scientist delineating 36.34the deposit and certifying that it is a commercial aggregate deposit.36.35    For purposes of this section and section 
         273.1115, "commercial aggregate deposit" 36.36means a deposit that will yield crushed stone or sand and gravel that is suitable for use 37.1as a construction aggregate; and "actively mined" means the removal of top soil and 37.2overburden in preparation for excavation or excavation of a commercial deposit.37.3    (m) (n) When any portion of the property under this subdivision or subdivision 22 37.4begins to be actively mined, the owner must file a supplemental affidavit within 60 days 37.5from the day any aggregate is removed stating the number of acres of the property that is 37.6actively being mined. The acres actively being mined must be (1) valued and classified 37.7under subdivision 24 in the next subsequent assessment year, and (2) removed from the 37.8aggregate resource preservation property tax program under section 
         273.1115, if the 37.9land was enrolled in that program. Copies of the original affidavit and all supplemental 37.10affidavits must be filed with the county assessor, the local zoning administrator, and the 37.11Department of Natural Resources, Division of Land and Minerals. A supplemental 37.12affidavit must be filed each time a subsequent portion of the property is actively mined, 37.13provided that the minimum acreage change is five acres, even if the actual mining activity 37.14constitutes less than five acres.37.15(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are 37.16not rules, are exempt from the rulemaking provisions of chapter 14, and the provisions 37.17in section 14.386 concerning exempt rules do not apply.37.18EFFECTIVE DATE.The section is effective the day following final enactment.37.19    Sec. 10. Minnesota Statutes 2008, section 273.13, subdivision 25, is amended to read:37.20    Subd. 25.  Class 4. (a) Class 4a is residential real estate containing four or more 37.21units and used or held for use by the owner or by the tenants or lessees of the owner 37.22as a residence for rental periods of 30 days or more, excluding property qualifying for 37.23class 4d. Class 4a also includes hospitals licensed under sections 
         144.50 to 
         144.56, other 37.24than hospitals exempt under section 
         272.02, and contiguous property used for hospital 37.25purposes, without regard to whether the property has been platted or subdivided. The 37.26market value of class 4a property has a class rate of 1.25 percent. 37.27    (b) Class 4b includes: 37.28    (1) residential real estate containing less than four units that does not qualify as class 37.294bb, other than seasonal residential recreational property; 37.30    (2) manufactured homes not classified under any other provision; 37.31    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead 37.32farm classified under subdivision 23, paragraph (b) containing two or three units; and 37.33    (4) unimproved property that is classified residential as determined under subdivision 37.3433. 37.35    The market value of class 4b property has a class rate of 1.25 percent. 38.1    (c) Class 4bb includes: 38.2    (1) nonhomestead residential real estate containing one unit, other than seasonal 38.3residential recreational property; and 38.4    (2) a single family dwelling, garage, and surrounding one acre of property on a 38.5nonhomestead farm classified under subdivision 23, paragraph (b). 38.6    Class 4bb property has the same class rates as class 1a property under subdivision 22. 38.7    Property that has been classified as seasonal residential recreational property at 38.8any time during which it has been owned by the current owner or spouse of the current 38.9owner does not qualify for class 4bb. 38.10    (d) Class 4c property includes: 38.11    (1) except as provided in subdivision 22, paragraph (c), or subdivision 23, paragraph 38.12(b), clause (1), real and personal property devoted to temporary and seasonal residential 38.13occupancy for recreation purposes, including real and personal property devoted to 38.14temporary and seasonal residential occupancy for recreation purposes and not devoted to 38.15commercial purposes for more than 250 days in the year preceding the year of assessment. 38.16For purposes of this clause, property is devoted to a commercial purpose on a specific 38.17day if any portion of the property is used for residential occupancy, and a fee is charged 38.18for residential occupancy. Class 4c property under this clause must contain three or 38.19more rental units. A "rental unit" is defined as a cabin, condominium, townhouse, 38.20sleeping room, or individual camping site equipped with water and electrical hookups 38.21for recreational vehicles. Class 4c property under this clause must provide recreational 38.22activities such as renting ice fishing houses, boats and motors, snowmobiles, downhill or 38.23cross-country ski equipment; provide marina services, launch services, or guide services; 38.24or sell bait and fishing tackle. A camping pad offered for rent by a property that otherwise 38.25qualifies for class 4c under this clause is also class 4c under this clause regardless of the 38.26term of the rental agreement, as long as the use of the camping pad does not exceed 250 38.27days. In order for a property to be classified as class 4c, seasonal residential recreational 38.28for commercial purposes under this clause, at least 40 percent of the annual gross lodging 38.29receipts related to the property must be from business conducted during 90 consecutive 38.30days and either (i) at least 60 percent of all paid bookings by lodging guests during the 38.31year must be for periods of at least two consecutive nights; or (ii) at least 20 percent 38.32of the annual gross receipts must be from charges for rental of fish houses, boats and 38.33motors, snowmobiles, downhill or cross-country ski equipment, or charges for marina 38.34services, launch services, and guide services, or the sale of bait and fishing tackle. For 38.35purposes of this determination, a paid booking of five or more nights shall be counted as 38.36two bookings. Class 4c property classified under this clause also includes commercial 39.1use real property used exclusively for recreational purposes in conjunction with other 39.2class 4c property classified under this clause and devoted to temporary and seasonal 39.3residential occupancy for recreational purposes, up to a total of two acres, provided the 39.4property is not devoted to commercial recreational use for more than 250 days in the year 39.5preceding the year of assessment and is located within two miles of the class 4c property 39.6with which it is used. Owners of real and personal property devoted to temporary and 39.7seasonal residential occupancy for recreation purposes and all or a portion of which was 39.8devoted to commercial purposes for not more than 250 days in the year preceding the 39.9year of assessment desiring classification as class 4c, must submit a declaration to the 39.10assessor designating the cabins or units occupied for 250 days or less in the year preceding 39.11the year of assessment by January 15 of the assessment year. Those cabins or units and 39.12a proportionate share of the land on which they are located must be designated class 39.134c under this clause  as otherwise provided. The remainder of the cabins or units and a 39.14proportionate share of the land on which they are located will be designated as class 3a. 39.15The owner of property desiring designation as class 4c property under this clause must 39.16provide guest registers or other records demonstrating that the units for which class 4c 39.17designation is sought were not occupied for more than 250 days in the year preceding the 39.18assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar, 39.19(3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility 39.20operated on a commercial basis not directly related to temporary and seasonal residential 39.21occupancy for recreation purposes does not qualify for class 4c; 39.22    (2) qualified property used as a golf course if: 39.23    (i) it is open to the public on a daily fee basis. It may charge membership fees or 39.24dues, but a membership fee may not be required in order to use the property for golfing, 39.25and its green fees for golfing must be comparable to green fees typically charged by 39.26municipal courses; and 39.27    (ii) it meets the requirements of section 
         273.112, subdivision 3, paragraph (d). 39.28    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction 39.29with the golf course is classified as class 3a property; 39.30    (3) real property up to a maximum of three acres of land owned and used by a 39.31nonprofit community service oriented organization and that is not used for residential 39.32purposes on either a temporary or permanent basis, qualifies for class 4c provided that 39.33it meets either of the following: 39.34    (i) the property is not used for a revenue-producing activity for more than six days 39.35in the calendar year preceding the year of assessment; or 40.1    (ii) the organization makes annual charitable contributions and donations at least 40.2equal to the property's previous year's property taxes and the property is allowed to be 40.3used for public and community meetings or events for no charge, as appropriate to the 40.4size of the facility. 40.5    For purposes of this clause, 40.6    (A) "charitable contributions and donations" has the same meaning as lawful 40.7gambling purposes under section 
         349.12, subdivision 25, excluding those purposes 40.8relating to the payment of taxes, assessments, fees, auditing costs, and utility payments; 40.9    (B) "property taxes" excludes the state general tax; 40.10    (C) a "nonprofit community service oriented organization" means any corporation, 40.11society, association, foundation, or institution organized and operated exclusively for 40.12charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 40.13federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 40.14Revenue Code; and 40.15    (D) "revenue-producing activities" shall include but not be limited to property or that 40.16portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 40.17liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 40.18alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 40.19insurance business, or office or other space leased or rented to a lessee who conducts a 40.20for-profit enterprise on the premises. 40.21Any portion of the property not qualifying under either item (i) which is used for 40.22revenue-producing activities for more than six days in the calendar year preceding the 40.23year of assessment shall be assessed as or (ii) is class 3a. The use of the property for social 40.24events open exclusively to members and their guests for periods of less than 24 hours, 40.25when an admission is not charged nor any revenues are received by the organization shall 40.26not be considered a revenue-producing activity. 40.27    The organization shall maintain records of its charitable contributions and donations 40.28and of public meetings and events held on the property and make them available upon 40.29request any time to the assessor to ensure eligibility. An organization meeting the 40.30requirement under item (ii) must file an application by May 1 with the assessor for 40.31eligibility for the current year's assessment. The commissioner shall prescribe a uniform 40.32application form and instructions; 40.33    (4) postsecondary student housing of not more than one acre of land that is owned by 40.34a nonprofit corporation organized under chapter 317A and is used exclusively by a student 40.35cooperative, sorority, or fraternity for on-campus housing or housing located within two 40.36miles of the border of a college campus; 41.1    (5) manufactured home parks as defined in section 
         327.14, subdivision 3; 41.2    (6) real property that is actively and exclusively devoted to indoor fitness, health, 41.3social, recreational, and related uses, is owned and operated by a not-for-profit corporation, 41.4and is located within the metropolitan area as defined in section 
         473.121, subdivision 2; 41.5    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt 41.6under section 
         272.01, subdivision 2, and the land on which it is located, provided that: 41.7    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan 41.8Airports Commission, or group thereof; and 41.9    (ii) the land lease, or any ordinance or signed agreement restricting the use of the 41.10leased premise, prohibits commercial activity performed at the hangar. 41.11    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must 41.12be filed by the new owner with the assessor of the county where the property is located 41.13within 60 days of the sale; 41.14    (8) a privately owned noncommercial aircraft storage hangar not exempt under 41.15section 
         272.01, subdivision 2, and the land on which it is located, provided that: 41.16    (i) the land abuts a public airport; and 41.17    (ii) the owner of the aircraft storage hangar provides the assessor with a signed 41.18agreement restricting the use of the premises, prohibiting commercial use or activity 41.19performed at the hangar; and 41.20    (9) residential real estate, a portion of which is used by the owner for homestead 41.21purposes, and that is also a place of lodging, if all of the following criteria are met: 41.22    (i) rooms are provided for rent to transient guests that generally stay for periods 41.23of 14 or fewer days; 41.24    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated 41.25in the basic room rate; 41.26    (iii) meals are not provided to the general public except for special events on fewer 41.27than seven days in the calendar year preceding the year of the assessment; and 41.28    (iv) the owner is the operator of the property.41.29The market value subject to the 4c classification under this clause is limited to five rental 41.30units. Any rental units on the property in excess of five, must be valued and assessed as 41.31class 3a. The portion of the property used for purposes of a homestead by the owner must 41.32be classified as class 1a property under subdivision 22; and41.33    (10) real property up to a maximum of three acres and operated as a restaurant 41.34as defined under section 
         157.15, subdivision 12, provided it: (A) is located on a lake 41.35as defined under section 
         103G.005, subdivision 15, paragraph (a), clause (3); and (B) 41.36is either devoted to commercial purposes for not more than 250 consecutive days, or 42.1receives at least 60 percent of its annual gross receipts from business conducted during 42.2four consecutive months. Gross receipts from the sale of alcoholic beverages must be 42.3included in determining the property's qualification under subitem (B). The property's 42.4primary business must be as a restaurant and not as a bar. Gross receipts from gift shop 42.5sales located on the premises must be excluded. Owners of real property desiring 4c 42.6classification under this clause must submit an annual declaration to the assessor by 42.7February 1 of the current assessment year, based on the property's relevant information for 42.8the preceding assessment year. 42.9    Class 4c property has a class rate of 1.5 percent of market value, except that (i) each 42.10parcel of seasonal residential recreational property not used for commercial purposes has 42.11the same class rates as class 4bb property, (ii) manufactured home parks assessed under 42.12clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal 42.13residential recreational property has a class rate of one percent for the first $500,000 of 42.14market value, and 1.25 percent for the remaining market value, (iv) the market value of 42.15property described in clause (4) has a class rate of one percent, (v) the market value of 42.16property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi) 42.17that portion of the market value of property in clause (9) qualifying for class 4c property 42.18has a class rate of 1.25 percent. 42.19    (e) Class 4d property is qualifying low-income rental housing certified to the assessor 42.20by the Housing Finance Agency under section 
         273.128, subdivision 3. If only a portion 42.21of the units in the building qualify as low-income rental housing units as certified under 42.22section 
         273.128, subdivision 3, only the proportion of qualifying units to the total number 42.23of units in the building qualify for class 4d. The remaining portion of the building shall be 42.24classified by the assessor based upon its use. Class 4d also includes the same proportion of 42.25land as the qualifying low-income rental housing units are to the total units in the building. 42.26For all properties qualifying as class 4d, the market value determined by the assessor must 42.27be based on the normal approach to value using normal unrestricted rents. 42.28    Class 4d property has a class rate of 0.75 percent. 42.29EFFECTIVE DATE.This section is effective the day following final enactment.42.30    Sec. 11. Minnesota Statutes 2008, section 273.13, subdivision 33, is amended to read:42.31    Subd. 33. Classification of unimproved property. (a) All real property that is not 42.32improved with a structure must be classified according to its current use.42.33    (b) Except as provided in subdivision 23, paragraph (c) or (d), real property that is 42.34not improved with a structure and for which there is no identifiable current use must be 42.35classified according to its highest and best use permitted under the local zoning ordinance. 43.1If the ordinance permits more than one use, the land must be classified according to the 43.2highest and best use permitted under the ordinance. If no such ordinance exists, the 43.3assessor shall consider the most likely potential use of the unimproved land based upon 43.4the use made of surrounding land or land in proximity to the unimproved land.43.5EFFECTIVE DATE.This section is effective the day following final enactment.43.6    Sec. 12. Minnesota Statutes 2008, section 273.33, subdivision 2, is amended to read:43.7    Subd. 2.  Listing and assessment by commissioner. The personal property, 43.8consisting of the pipeline system of mains, pipes, and equipment attached thereto, of 43.9pipeline companies and others engaged in the operations or business of transporting natural 43.10gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed with and 43.11assessed by the commissioner of revenue and the values provided to the city or county 43.12assessor by order. This subdivision shall not apply to the assessment of the products 43.13transported through the pipelines nor to the lines of local commercial gas companies 43.14engaged primarily in the business of distributing gas to consumers at retail nor to pipelines 43.15used by the owner thereof to supply natural gas or other petroleum products exclusively 43.16for such owner's own consumption and not for resale to others. If more than 85 percent 43.17of the natural gas or other petroleum products actually transported over the pipeline is 43.18used for the owner's own consumption and not for resale to others, then this subdivision 43.19shall not apply; provided, however, that in that event, the pipeline shall be assessed in 43.20proportion to the percentage of gas actually transported over such pipeline that is not used 43.21for the owner's own consumption. On or before June 30 August 1, the commissioner shall 43.22certify to the auditor of each county, the amount of such personal property assessment 43.23against each company in each district in which such property is located. 43.24EFFECTIVE DATE.This section is effective for assessment year 2009 and 43.25thereafter.43.26    Sec. 13. Minnesota Statutes 2008, section 273.37, subdivision 2, is amended to read:43.27    Subd. 2.  Listing and assessment by commissioner. Transmission lines of less 43.28than 69 kv, transmission lines of 69 kv and above located in an unorganized township, 43.29and distribution lines, and equipment attached thereto, having a fixed situs outside the 43.30corporate limits of cities except distribution lines taxed as provided in sections 
         273.40 and 43.31273.41
         , shall be listed with and assessed by the commissioner of revenue in the county 43.32where situated and the values provided to the city or county assessor by order. The 43.33commissioner shall assess such property at the percentage of market value fixed by law; 44.1and, on or before June 30 August 1, shall certify to the auditor of each county in which 44.2such property is located the amount of the assessment made against each company and 44.3person owning such property. 44.4EFFECTIVE DATE.This section is effective for assessment year 2009 and 44.5thereafter.44.6    Sec. 14. Minnesota Statutes 2008, section 274.13, subdivision 2, is amended to read:44.7    Subd. 2. Special board; delegated duties. The board of equalization for any 44.8county may appoint a special board of equalization and may delegate to it the powers and 44.9duties in subdivision 1. The special board of equalization shall serve at the direction and 44.10discretion of the appointing county board, subject to the restrictions imposed by law on 44.11the appointing board. The appointing board may determine the number of members to be 44.12appointed to the special board, the compensation and expenses to be paid, and the term of 44.13office of each member. At least one member of the special board of equalization must be 44.14an appraiser, realtor, or other person familiar with property valuations in the county. The 44.15county auditor is a nonvoting member and serves as the recorder for the special board.44.16The special board is subject to the quorum requirements for county boards and the training 44.17requirements for county boards in section 274.135, subdivision 2.44.18EFFECTIVE DATE.The section is effective the day following final enactment.44.19    Sec. 15. Minnesota Statutes 2008, section 274.135, subdivision 3, is amended to read:44.20    Subd. 3.  Proof of compliance; transfer of duties. (a) Any county that 44.21conducts county boards of appeal and equalization meetings must provide proof to the 44.22commissioner by December 1, 2009, and each year thereafter, that it is in compliance 44.23with the requirements of subdivision 2. Beginning in 2009, this notice must also verify 44.24that there was a quorum of voting members at each meeting of the board of appeal and 44.25equalization in the current year. A county that does not comply with these requirements 44.26is deemed to have transferred its board of appeal and equalization powers to the special 44.27board of equalization appointed pursuant to section 
         274.13, subdivision 2, beginning 44.28with the following year's assessment and continuing unless the powers are reinstated 44.29under paragraph (c). A county that does not comply with the requirements of subdivision 44.302 and has not appointed a special board of equalization shall appoint a special board of 44.31equalization before the following year's assessment. 44.32    (b) The county shall notify the taxpayers when the board of appeal and equalization 44.33for a county has been transferred to the special board of equalization under this subdivision 45.1and, prior to the meeting time of the special board of equalization, the county shall make 45.2available to those taxpayers a procedure for a review of the assessments, including, but 45.3not limited to, open book meetings. This alternate review process must take place in 45.4April and May. 45.5    (c) A county board whose powers are transferred to the special board of equalization 45.6under this subdivision may be reinstated by resolution of the county board and upon proof 45.7of compliance with the requirements of subdivision 2. The resolution and proofs must be 45.8provided to the commissioner by December 1 in order to be effective for the following 45.9year's assessment. 45.10(d) If a person who was entitled to appeal to the county board of appeal and 45.11equalization or to the county special board of equalization is not able to do so in a 45.12particular year because the county board or special board did not meet the quorum and 45.13training requirements in this section and section 274.13, or because the special board 45.14was not appointed, that person may instead appeal to the commissioner of revenue, 45.15provided that the appeal is received by the commissioner prior to August 1. The appeal 45.16is not subject to either chapter 14 or section 270C.92. The commissioner must issue 45.17an appropriate order to the county assessor in response to each timely appeal, either 45.18upholding or changing the valuation or classification of the property. Prior to October 1 of 45.19each year, the commissioner must charge and bill the county where the property is located 45.20$500 for each tax parcel covered by an order issued under this paragraph in that year. 45.21Amounts received by the commissioner under this paragraph must be deposited in the 45.22state's general fund. If payment of a billed amount is not received by the commissioner 45.23before December 1 of the year when billed, the commissioner must deduct that unpaid 45.24amount from any state aid the commissioner would otherwise pay to the county under 45.25chapter 477A in the next year. Late payments may either be returned to the county 45.26uncashed and undeposited or may be accepted. If a late payment is accepted, the state aid 45.27paid to the county under chapter 477A must be adjusted within 12 months to eliminate any 45.28reduction that occurred because the payment was late. Amounts needed to make these 45.29adjustments are included in the appropriation under section 477A.03, subdivision 2.45.30EFFECTIVE DATE.This section is effective for taxes payable in 2010 and 45.31thereafter.45.32    Sec. 16. Minnesota Statutes 2008, section 274.14, is amended to read:45.33274.14 LENGTH OF SESSION; RECORD.46.1    The board may must meet on anyafter the second Friday in June on at least one 46.2meeting day and may meet for up to ten consecutive meeting days in June, after the 46.3second Friday in June. The actual meeting dates must be contained on the valuation 46.4notices mailed to each property owner in the county as provided in section 
         273.121. For 46.5this purpose, "meeting days" is defined as any day of the week excluding Sunday. At 46.6the board's discretion, "meeting days" may include Saturday. No action taken by the 46.7county board of review after June 30 is valid, except for corrections permitted in sections 46.8273.01
          and 
         274.01. The county auditor shall keep an accurate record of the proceedings 46.9and orders of the board. The record must be published like other proceedings of county 46.10commissioners. A copy of the published record must be sent to the commissioner of 46.11revenue, with the abstract of assessment required by section 
         274.16.46.12    For counties that conduct either regular board of review meetings or open book 46.13meetings, at least one of the meeting days must include a meeting that does not end 46.14before 7:00 p.m. For counties that require taxpayer appointments for the board of review, 46.15appointments must include some available times that extend until at least 7:00 p.m. The 46.16county may have a Saturday meeting in lieu of, or in addition to, the extended meeting 46.17times under this paragraph.46.18EFFECTIVE DATE.This section is effective the day following final enactment.46.19    Sec. 17. Minnesota Statutes 2008, section 274.175, is amended to read:46.20274.175 VALUES FINALIZED.46.21The assessments recorded by the county assessor and the county auditor under 46.22sections 
         273.124, subdivision 9; 
         274.16; 
         274.17; or other law for real and personal 46.23property are final on July 1 of the assessment year, except for property added to the 46.24assessment rolls under section 
         272.02, subdivision 38, and assessments certified to the 46.25auditor under sections 273.33, subdivision 2, and 273.37, subdivision 2, or deleted 46.26because of tax forfeiture pursuant to chapter 281. No changes in value may be made 46.27after July 1 of the assessment year, except for corrections permitted in sections 
         273.0146.28and 
         274.01, or assessments certified to the auditor under sections 273.33, subdivision 2, 46.29and 273.37, subdivision 2.  46.30EFFECTIVE DATE.This section is effective for assessment year 2009 and 46.31thereafter.47.1    Sec. 18. Minnesota Statutes 2008, section 290C.06, is amended to read:47.2290C.06 CALCULATION OF AVERAGE ESTIMATED MARKET VALUE; 47.3TIMBERLAND MANAGED FOREST LAND.47.4The commissioner shall annually calculate a statewide average estimated market 47.5value per acre for class 2b timberland2c managed forest land under section 
         273.13, 47.6subdivision 23
         , paragraph (b).47.7EFFECTIVE DATE.This section is effective for calculations made in 2010 and 47.8thereafter.47.9    Sec. 19. Minnesota Statutes 2008, section 290C.07, is amended to read:47.10290C.07 CALCULATION OF INCENTIVE PAYMENT.47.11    An approved claimant under the sustainable forest incentive program is eligible to 47.12receive an annual payment. The payment shall equal the greater of: 47.13    (1) the difference between the property tax that would be paid on the land using the 47.14previous year's statewide average total township tax rate and the a class rate for class 2b 47.15timberland under section 273.13, subdivision 23, paragraph (b) of one percent, if the land 47.16were valued at (i) the average statewide timberland managed forest land market value per 47.17acre calculated under section 
         290C.06, and (ii) the average statewide timberland managed 47.18forest land current use value per acre calculated under section 
         290C.02, subdivision 5; or 47.19    (2) two-thirds of the property tax amount determined by using the previous 47.20year's statewide average total township tax rate, the estimated market value per acre as 47.21calculated in section 
         290C.06, and the a class rate for 2b timberland under section 273.13, 47.22subdivision 23, paragraph (b) of one percent, provided that the payment shall be no less 47.23than $7 per acre for each acre enrolled in the sustainable forest incentive program. 47.24EFFECTIVE DATE.This section is effective for calculations made in 2010 and 47.25thereafter.47.26    Sec. 20. Minnesota Statutes 2008, section 477A.011, subdivision 34, is amended to 47.27read:47.28    Subd. 34. City revenue need. (a) For a city with a population equal to or greater 47.29than 2,500, "city revenue need" is the greater of 285 or the sum of (1) 5.0734098 times the 47.30pre-1940 housing percentage; plus (2) 19.141678 times the population decline percentage; 47.31plus (3) 2504.06334 times the road accidents factor; plus (4) 
         355.0547; minus (5) the 47.32metropolitan area factor; minus (6) 49.10638 times the household size.48.1    (b) For a city with a population less than 2,500, "city revenue need" is the sum of 48.2(1) 
         2.387 times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial 48.3industrial percentage; plus (3) 3.16042 times the population decline percentage; plus (4) 48.41.206
          times the transformed population; minus (5) 
         62.772.48.5    (c) For a city with a population of 2,500 or more and a population in one of the most 48.6recently available five years that was less than 2,500, "city revenue need" is the sum of (1) 48.7its city revenue need calculated under paragraph (a) multiplied by its transition factor; 48.8plus (2) its city revenue need calculated under the formula in paragraph (b) multiplied 48.9by the difference between one and its transition factor. For purposes of this paragraph, a 48.10city's "transition factor" is equal to 0.2 multiplied by the number of years that the city's 48.11population estimate has been 2,500 or more. This provision only applies for aids payable 48.12in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500. It 48.13applies to any city for aids payable in 2009 and thereafter. The city revenue need under 48.14this paragraph may not be less than 285.48.15    (d) The city revenue need cannot be less than zero.48.16    (e) For calendar year 2005 and subsequent years, the city revenue need for a city, 48.17as determined in paragraphs (a) to (d), is multiplied by the ratio of the annual implicit 48.18price deflator for government consumption expenditures and gross investment for state 48.19and local governments as prepared by the United States Department of Commerce, for 48.20the most recently available year to the 2003 implicit price deflator for state and local 48.21government purchases.48.22EFFECTIVE DATE.This section is effective for aids payable in 2009 and 48.23thereafter.48.24    Sec. 21. Minnesota Statutes 2008, section 477A.011, subdivision 42, is amended to 48.25read:48.26    Subd. 42. City jobs base. (a) "City jobs base" for a city with a population of 5,000 or 48.27more is equal to the product of (1) $25.20, (2) the number of jobs per capita in the city, and 48.28(3) its population. For cities with a population less than 5,000, the city jobs base is equal 48.29to zero. For a city receiving aid under 
         subdivision 36, paragraph (l) (k), its city jobs base 48.30is reduced by the lesser of 36 percent of the amount of aid received under that paragraph 48.31or $1,000,000. No city's city jobs base may exceed $4,725,000 under this paragraph.48.32    (b) For calendar year 2010 and subsequent years, the city jobs base for a city, as 48.33determined in paragraph (a), is multiplied by the ratio of the appropriation under section 48.34477A.03, subdivision 2a
         , for the year in which the aid is paid to the appropriation under 48.35that section for aids payable in 2009.49.1    (c) For purposes of this subdivision, "jobs per capita in the city" means (1) the 49.2average annual number of employees in the city based on the data from the Quarterly 49.3Census of Employment and Wages, as reported by the Department of Employment and 49.4Economic Development, for the most recent calendar year available as of May 1, 2008, 49.5divided by (2) the city's population for the same calendar year as the employment data. 49.6The commissioner of the Department of Employment and Economic Development shall 49.7certify to the city the average annual number of employees for each city by June 1, 2008. 49.8A city may challenge an estimate under this paragraph by filing its specific objection, 49.9including the names of employers that it feels may have misreported data, in writing with 49.10the commissioner by June 20, 2008. The commissioner shall make every reasonable effort 49.11to address the specific objection and adjust the data as necessary. The commissioner shall 49.12certify the estimates of the annual employment to the commissioner of revenue by July 15, 49.132008, including any estimates still under objection.49.14EFFECTIVE DATE.This section is effective for aids payable in 2009 and 49.15thereafter.49.16    Sec. 22. Minnesota Statutes 2008, section 477A.013, subdivision 8, is amended to read:49.17    Subd. 8.  City formula aid. (a) In calendar year 2009, the formula aid for a city 49.18is equal to the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need 49.19increase percentage multiplied by its unmet need. 49.20    (b) In calendar year 2010 and subsequent years, the formula aid for a city is equal 49.21to the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need increase 49.22percentage multiplied by the average of its unmet need for the most recently available 49.23two years.49.24No city may have a formula aid amount less than zero. The need increase percentage 49.25must be the same for all cities. 49.26    The applicable need increase percentage must be calculated by the Department of 49.27Revenue so that the total of the aid under subdivision 9 equals the total amount available 49.28for aid under section 
         477A.03. For aids payable in 2009 only, all data used in calculating 49.29aid to cities under sections 
         477A.011 to 
         477A.013 will be based on the data available for 49.30calculating aid to cities for aids payable in 2008. For aids payable in 2010 and thereafter, 49.31data used in calculating aids to cities under sections 
         477A.011 to 
         477A.013 shall be the 49.32most recently available data as of January 1 in the year in which the aid is calculated49.33except as provided in section 477A.011, subdivisions 3 and 35.50.1EFFECTIVE DATE.This section is effective for assessment year 2009 and 50.2thereafter.50.3    Sec. 23.  REPEALER.50.4Minnesota Rules, parts 8115.0200; 8115.0300; 8115.0400; 8115.0500; 8115.0600; 50.58115.1000; 8115.1100; 8115.1200; 8115.1300; 8115.1400; 8115.1500; 8115.1600; 50.68115.1700; 8115.1800; 8115.1900; 8115.2000; 8115.2100; 8115.2200; 8115.2300; 50.78115.2400; 8115.2500; 8115.2600; 8115.2700; 8115.2800; 8115.2900; 8115.3000; 50.88115.4000; 8115.4100; 8115.4200; 8115.4300; 8115.4400; 8115.4500; 8115.4600; 50.98115.4700; 8115.4800; 8115.4900; 8115.5000; 8115.5100; 8115.5200; 8115.5300; 50.108115.5400; 8115.5500; 8115.5600; 8115.5700; 8115.5800; 8115.5900; 8115.6000; 50.118115.6100; 8115.6200; 8115.6300; 8115.6400; and 8115.9900; are repealed.50.12EFFECTIVE DATE.This section is effective the day following final enactment.50.13ARTICLE 550.14CONDITIONAL USE DEEDS50.15    Section 1. Minnesota Statutes 2008, section 282.01, subdivision 1, is amended to read:50.16    Subdivision 1. Classification as conservation or nonconservation.It is the general 50.17policy of this state to encourage the best use of tax-forfeited lands, recognizing that some 50.18lands in public ownership should be retained and managed for public benefits while other 50.19lands should be returned to private ownership (a) When acting on behalf of the state under 50.20laws allowing the county board to classify and manage tax-forfeited lands held by the 50.21state in trust for the local units as provided in section 281.25, the county board has the 50.22discretion to decide that some lands in public ownership should be retained and managed 50.23for public benefits while other lands should be returned to private ownership. Parcels 50.24of land becoming the property of the state in trust under law declaring the forfeiture 50.25of lands to the state for taxes must be classified by the county board of the county in 50.26which the parcels lie as conservation or nonconservation. In making the classification the 50.27board shall consider the present use of adjacent lands, the productivity of the soil, the 50.28character of forest or other growth, accessibility of lands to established roads, schools, 50.29and other public services, their peculiar suitability or desirability for particular uses, and 50.30the suitability of the forest resources on the land for multiple use, and sustained yield 50.31management. The classification, furthermore, must: (1) encourage and foster a mode of 50.32land utilization that will facilitate the economical and adequate provision of transportation, 50.33roads, water supply, drainage, sanitation, education, and recreation; (2) facilitate reduction 51.1of governmental expenditures; (3) conserve and develop the natural resources; and(4) 51.2protect and sustain important environmental and ecological systems; and (5) foster and 51.3develop agriculture and other industries in the districts and places best suited to them.51.4In making the classification the county board may use information made available 51.5by any office or department of the federal, state, or local governments, or by any other 51.6person or agency possessing pertinent information at the time the classification is made. 51.7The lands may be reclassified from time to time as the county board considers necessary 51.8or desirable, except for conservation lands held by the state free from any trust in favor of 51.9any taxing district.51.10If the lands are located within the boundaries of an organized town, with taxable 51.11valuation in excess of $20,000, or incorporated municipality, the classification or 51.12reclassification and sale must first be approved by the town board of the town or the 51.13governing body of the municipality in which the lands are located. The town board of 51.14the town or the governing body of the municipality is considered to have approved 51.15the classification or reclassification and sale if the county board is not notified of the 51.16disapproval of the classification or reclassification and sale within 60 days of the date the 51.17request for approval was transmitted to the town board of the town or governing body 51.18of the municipality. If the town board or governing body desires to acquire any parcel 51.19lying in the town or municipality by procedures authorized in this section, it must file a 51.20written application with the county board to withhold the parcel from public sale. The 51.21application must be filed within 60 days of the request for classification or reclassification 51.22and sale. The county board shall then withhold the parcel from public sale for six months. 51.23A municipality or governmental subdivision shall pay maintenance costs incurred by 51.24the county during the six-month period while the property is withheld from public sale, 51.25provided the property is not offered for public sale after the six-month period. A clerical 51.26error made by county officials does not serve to eliminate the request of the town board 51.27or governing body if the board or governing body has forwarded the application to the 51.28county auditor. If the town board or governing body of the municipality fails to submit an 51.29application and a resolution of the board or governing body to acquire the property within 51.30the withholding period, the county may offer the property for sale upon the expiration of 51.31the withholding period.51.32(b) Whenever the county board deems it appropriate, the board may hold a meeting 51.33for the purpose of reclassifying tax-forfeited land that has not been sold or released from 51.34the trust. The criteria and procedures for reclassification are the same as those required for 51.35an initial classification.52.1(c) Prior to meeting for the purpose of classifying or reclassifying tax-forfeited lands, 52.2the county board must give notice of its intent to meet for that purpose as provided in this 52.3paragraph. The notice must be given no more than 90 days and no less than 60 days before 52.4the date of the meeting; provided that if the meeting is rescheduled, notice of the new 52.5date, time, and location must be given at least 14 days before the date of the rescheduled 52.6meeting. The notice must be posted on a Web site. The notice must also be mailed or 52.7otherwise delivered to each person who has filed a request for notice of special meetings 52.8with the public body, regardless of whether the matter is considered at a regular or special 52.9meeting. The notice must be mailed or delivered at least 60 days before the date of the 52.10meeting. If the meeting is rescheduled, notice of the new date, time, and location must be 52.11mailed or delivered at least 14 days before the date of the rescheduled meeting. The public 52.12body shall publish the notice once, at least 30 days before the meeting, in a newspaper of 52.13general circulation within the area of the public body's authority. The board must also mail 52.14a notice by electronic means to each person who requests notice of meetings dealing with 52.15this subject and who agrees as provided in chapter 325L to accept notice that is mailed 52.16by electronic means. Receipt of actual notice under the conditions specified in section 52.1713D.04, subdivision 7, satisfies the notice requirements of this paragraph.52.18The board may classify or reclassify tax-forfeited lands at any regular or special 52.19meeting, as those terms are defined in chapter 13D and may conduct only this business, or 52.20this business as well as other business or activities at the meeting.52.21(d) At the meeting, the county board must allow any person or agency possessing 52.22pertinent information to make or submit comments and recommendations about the 52.23pending classification or reclassification. In addition, representatives of governmental 52.24entities in attendance must be allowed to describe plans, ideas, or projects that may 52.25involve use or acquisition of the property by that or another governmental entity. The 52.26county board must solicit and consider any relevant components of current municipal or 52.27metropolitan comprehensive land use plans that incorporate the area in which the land 52.28is located. After allowing testimony, the board may classify, reclassify, or delay taking 52.29action on any parcel or parcels. In order for a state agency or a governmental subdivision 52.30of the state to preserve its right to request a purchase or other acquisition of a forfeited 52.31parcel, it may, at any time following forfeiture, file a written request to withhold the parcel 52.32from sale or lease to others under the provisions of subdivision 1a.52.33(e) When classifying, reclassifying, appraising, and selling lands under this chapter, 52.34the county board may designate the tracts as assessed and acquired, or may by resolution 52.35provide for the subdivision of the tracts into smaller units or for the grouping of several 52.36tracts into one tract when the subdivision or grouping is deemed advantageous for 53.1conservation or sale purposes. This paragraph does not authorize the county board to 53.2subdivide a parcel or tract of tax-forfeited land that, as assessed and acquired, is withheld 53.3from sale under section 282.018, subdivision 1.53.4(f) A county board may by resolution elect to use the classification and 53.5reclassification procedures provided in paragraphs (g), (h), and (i), instead of the 53.6procedures provided in paragraphs (b), (c), and (d). Once an election is made under this 53.7paragraph, it is effective for a minimum of five years.53.8(g) The classification or reclassification of tax-forfeited land that has not been sold or 53.9released from the trust may be made by the county board using information made available 53.10to it by any office or department of the federal, state, or local governments, or by any other 53.11person or agency possessing pertinent information at the time the classification is made.53.12(h) If the lands are located within the boundaries of an organized town or 53.13incorporated municipality, a classification or reclassification and sale must first be 53.14approved by the town board of the town or the governing body of the municipality in 53.15which the lands are located. The town board of the town or the governing body of the 53.16municipality is considered to have approved the classification or reclassification and sale 53.17if the county board is not notified of the disapproval of the classification or reclassification 53.18and sale within 60 days of the date the request for approval was transmitted to the town 53.19board of the town or governing body of the municipality. If the town board or governing 53.20body disapproves of the classification or reclassification and sale, the county board must 53.21follow the procedures in paragraphs (c) and (d), with regard to the parcel, and must 53.22additionally cause to be published in a newspaper a notice of the date, time, location, and 53.23purpose of the required meeting.53.24(i) If a town board or a governing body of a municipality desires to acquire any 53.25parcel lying in the town or municipality by procedures authorized in this section, it may 53.26file a written request under subdivision 1a, paragraph (a).53.27EFFECTIVE DATE.This section is effective July 1, 2009.53.28    Sec. 2. Minnesota Statutes 2008, section 282.01, subdivision 1a, is amended to read:53.29    Subd. 1a. Conveyance; generally to public entities.(a) Upon written request 53.30from a state agency or a governmental subdivision of the state, a parcel of unsold 53.31tax-forfeited land must be withheld from sale or lease to others for a maximum of six 53.32months. The request must be submitted to the county auditor. Upon receipt, the county 53.33auditor must withhold the parcel from sale or lease to any other party for six months, and 53.34must confirm the starting date of the six-month withholding period to the requesting 53.35agency or subdivision. If the request is from a governmental subdivision of the state, the 54.1governmental subdivision must pay the maintenance costs incurred by the county during 54.2the period the parcel is withheld. The county board may approve a sale or conveyance to 54.3the requesting party during the withholding period. A conveyance of the property to the 54.4requesting party terminates the withholding period.54.5A governmental subdivision of the state must not make, and a county auditor must 54.6not act upon, a second request to withhold a parcel from sale or lease within 18 months 54.7of a previous request for that parcel. A county may reject a request made under this 54.8paragraph if the request is made more than 30 days after the county has given notice to the 54.9requesting state agency or governmental subdivision of the state that the county intends to 54.10sell or otherwise dispose of the property.54.11(b) Nonconservation tax-forfeited lands may be sold by the county board, for 54.12their market value as determined by the county board, to an organized or incorporated 54.13governmental subdivision of the state for any public purpose for which the subdivision is 54.14authorized to acquire property or. When the term "market value" is used in this section, it 54.15means an estimate of the full and actual market value of the parcel as determined by the 54.16county board, but in making this determination, the board and the persons employed by or 54.17under contract with the board in order to perform, conduct, or assist in the determination, 54.18are exempt from the licensure requirements of chapter 82B.54.19(c) Nonconservation tax-forfeited lands may be released from the trust in favor of the 54.20taxing districts on application of to the county board by a state agency for an authorized 54.21use at not less than their market value as determined by the county board.54.22(d) Nonconservation tax-forfeited lands may be sold by the county board to an 54.23organized or incorporated governmental subdivision of the state or state agency for less 54.24than their market value if:54.25(1) the county board determines that a sale at a reduced price is in the public interest 54.26because a reduced price is necessary to provide an incentive to correct the blighted 54.27conditions that make the lands undesirable in the open market, or the reduced price will 54.28lead to the development of affordable housing; and54.29(2) the governmental subdivision or state agency has documented its specific plans 54.30for correcting the blighted conditions or developing affordable housing, and the specific 54.31law or laws that empower it to acquire real property in furtherance of the plans.54.32If the sale under this paragraph is to a governmental subdivision of the state, the 54.33commissioner of revenue must convey the property on behalf of the state by quit claim 54.34deed. If the sale under this paragraph is to a state agency, the commissioner must issue a 54.35conveyance document that releases the property from the trust in favor of the taxing 54.36districts.55.1(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts 55.2may be conveyed by the commissioner of revenue may convey by deed in the name 55.3of the state a tract of tax-forfeited land held in trust in favor of the taxing districts to a 55.4governmental subdivision for an authorized public use, if an application is submitted to 55.5the commissioner which includes a statement of facts as to the use to be made of the tract 55.6and the need therefor and the favorable recommendation of the county board. For the 55.7purposes of this paragraph, "authorized public use" means a use that allows an indefinite 55.8segment of the public to physically use and enjoy the property in numbers appropriate 55.9to its size and use, or is for a public service facility. Authorized public uses as defined 55.10in this paragraph are limited to:55.11(1) a road, or right-of-way for a road;55.12(2) a park that is both available to, and accessible by, the public that contains 55.13amenities such as campgrounds, playgrounds, athletic fields, trails, or shelters;55.14(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along 55.15with a reasonable amount of surrounding land maintained in its natural state;55.16(4) transit ways for buses or commuter trains;55.17(5) public beaches or boat launches;55.18(6) public parking;55.19(7) civic recreation or conference facilities; and55.20(8) public service facilities such as fire halls, police stations, lift stations, water 55.21towers, sanitation facilities, water treatment facilities, and administrative offices.55.22(f) The commissioner of revenue shall convey a parcel of nonconservation 55.23tax-forfeited land to a local governmental subdivision of the state by quit claim deed 55.24on behalf of the state upon the favorable recommendation of the county board if the 55.25governmental subdivision has certified to the board that prior to forfeiture the subdivision 55.26was entitled to the parcel under a written development agreement or instrument, but 55.27the conveyance failed to occur prior to forfeiture. No compensation or consideration is 55.28required for, and no conditions attach to, the conveyance.55.29    (g) The commissioner of revenue shall convey a parcel of nonconservation 55.30tax-forfeited land to the association of a common interest community by quit claim deed 55.31upon the favorable recommendation of the county board if the association certifies to the 55.32board that prior to forfeiture the association was entitled to the parcel under a written 55.33agreement, but the conveyance failed to occur prior to forfeiture. No compensation or 55.34consideration is required for, and no conditions attach to, the conveyance.55.35(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the 55.36state for less than its market value for either: (1) creation or preservation of wetlands; 56.1(2) drainage or storage of storm water under a storm water management plan; or (3) 56.2preservation, or restoration and preservation, of the land in its natural state. The deed must 56.3contain a restrictive covenant limiting the use of the land to one of these purposes for 56.430 years or until the property is reconveyed back to the state in trust. At any time, the 56.5governmental subdivision may reconvey the property to the state in trust for the taxing 56.6districts. The deed of reconveyance is subject to approval by the commissioner of revenue. 56.7No part of a purchase price determined under this paragraph shall be refunded upon a 56.8reconveyance, but the amount paid for a conveyance under this paragraph may be taken 56.9into account by the county board when setting the terms of a future sale of the same 56.10property to the same governmental subdivision under paragraph (b) or (d). If the lands 56.11are unplatted and located outside of an incorporated municipality and the commissioner 56.12of natural resources determines there is a mineral use potential, the sale is subject to the 56.13approval of the commissioner of natural resources.56.14EFFECTIVE DATE.This section is effective July 1, 2009.56.15    Sec. 3. Minnesota Statutes 2008, section 282.01, subdivision 1b, is amended to read:56.16    Subd. 1b.  Conveyance; targeted neighborhood lands.(a) Notwithstanding 56.17subdivision 1a, in the case of tax-forfeited lands located in a targeted neighborhood, as 56.18defined in section 469.201, subdivision 10 in a city of the first class, the commissioner of 56.19revenue shall convey by quit claim deed in the name of the state any tract of tax-forfeited 56.20land held in trust in favor of the taxing districts, to a political subdivision of the state that 56.21submits an application to the commissioner of revenue and the favorable recommendation 56.22of the county board. For purposes of this subdivision, the term "targeted neighborhood" 56.23has the meaning given in section 469.201, subdivision 10, except that the land must be 56.24located within a first class city.56.25(b) The application under paragraph (a) must include a statement of facts as to the 56.26use to be made of the tract, the need therefor, and a resolution, adopted by the governing 56.27body of the political subdivision, finding that the conveyance of a tract of tax-forfeited 56.28land to the political subdivision is necessary to provide for the redevelopment of land as 56.29productive taxable property. Deeds of conveyance issued under paragraph (a) are not 56.30conditioned on continued use of the property for the use stated in the application.56.31EFFECTIVE DATE.This section is effective July 1, 2009.56.32    Sec. 4. Minnesota Statutes 2008, section 282.01, subdivision 1c, is amended to read:57.1    Subd. 1c. Deed of conveyance; form; approvals. The deed of conveyance for 57.2property conveyed for a an authorized public use under the authorities in subdivision 57.31a, paragraph (e), must be on a form approved by the attorney general and must be 57.4conditioned on continued use for the purpose stated in the application as provided in this 57.5section. These deeds are conditional use deeds that convey a defeasible estate. Reversion 57.6of the estate occurs by operation of law and without the requirement for any affirmative 57.7act by or on behalf of the state when there is a failure to put the property to the approved 57.8authorized public use for which it was conveyed, or an abandonment of that use, except as 57.9provided in subdivision 1d.57.10EFFECTIVE DATE.This section is effective July 1, 2009.57.11    Sec. 5. Minnesota Statutes 2008, section 282.01, subdivision 1d, is amended to read:57.12    Subd. 1d. Reverter for failure to use; conveyance to state.(a) If after three years 57.13from the date of the conveyance a governmental subdivision to which tax-forfeited land 57.14has been conveyed for a specified an authorized public use as provided in this section57.15subdivision 1a, paragraph (e), fails to put the land to that use, or abandons that use, the 57.16governing body of the subdivision may, must: (1) with the approval of the county board, 57.17purchase the property for an authorized public purpose at the present appraised market57.18value as determined by the county board. In that case, the commissioner of revenue 57.19shall, upon proper written application approved by the county board, issue an appropriate 57.20deed to the subdivisions free of a use restriction and reverter. The governing body may 57.21also, or (2) authorize the proper officers to convey the land, or the part of the land not 57.22required for an authorized public use, to the state of Minnesota. in trust for the taxing 57.23districts. If the governing body purchases the property under clause (1), the commissioner 57.24of revenue shall, upon property application submitted by the county auditor, convey 57.25the property on behalf of the state by quit claim deed to the subdivision free of a use 57.26restriction and the possibility of reversion or defeasement. If the governing body decides 57.27to reconvey the property to the state under clause (2), the officers shall execute a deed of 57.28conveyance immediately. The conveyance is subject to the approval of the commissioner 57.29and its form must be approved by the attorney general. A sale, lease, transfer, or other 57.30conveyance of tax-forfeited lands by a housing and redevelopment authority, a port 57.31authority, an economic development authority, or a city as authorized by chapter 469 is not 57.32an abandonment of use and the lands shall not be reconveyed to the state nor shall they 57.33revert to the state. A certificate made by a housing and redevelopment authority, a port 57.34authority, an economic development authority, or a city referring to a conveyance by it 57.35and stating that the conveyance has been made as authorized by chapter 469 may be filed 58.1with the county recorder or registrar of titles, and the rights of reverter in favor of the state 58.2provided by subdivision 1e will then terminate. No vote of the people is required for the 58.3conveyance. For the purposes of this subdivision, there is no failure to put the land to the 58.4authorized public use and no abandonment of that use if a formal plan of the governmental 58.5subdivision, including, but not limited to, a comprehensive plan or land use plan that 58.6shows an intended future use of the land for the authorized public use.58.7(b) Property held by a governmental subdivision of the state under a conditional use 58.8deed executed by the commissioner of revenue after January 1, 2006, may be acquired 58.9by that governmental subdivision after 15 years from the date of the conveyance if 58.10the commissioner determines upon written application from the subdivision that the 58.11subdivision has in fact put the property to the authorized public use for which it was 58.12conveyed, and the subdivision has made a finding that it has no current plans to change 58.13the use of the lands. Prior to conveying the property, the commissioner shall inquire 58.14whether the county board where the land is located objects to a conveyance of the property 58.15to the subdivision without conditions and without further act by or obligation of the 58.16subdivision. If the county does not object within 60 days, and the commissioner makes 58.17a favorable determination, the commissioner shall issue a quit claim deed on behalf of 58.18the state unconditionally conveying the property to the governmental subdivision. For 58.19purposes of this paragraph, demonstration of an intended future use for the authorized 58.20public use in a formal plan of the governmental subdivision does not constitute use for 58.21that authorized public use.58.22(c) Property held by a governmental subdivision of the state under a conditional use 58.23deed executed by the commissioner of revenue before January 1, 2006, is released from 58.24the use restriction and possibility of reversion on January 1, 2021, if the county board 58.25records a document describing the land and citing this paragraph. The county board may 58.26authorize the county treasurer to deduct the amount of the recording fees from future 58.27settlements of property taxes to the subdivision.58.28(d) All property held by a governmental subdivision of the state under a conditional 58.29use deed executed by the commissioner of revenue is released from the use restriction 58.30and possibility of reversion on the later of: (1) January 1, 2015; (2) 40 years after the 58.31date the deed was executed; or (3) upon final resolution of an appeal to district court 58.32under subdivision 1e if the appeal was commenced prior to January 1, 2015. Upon the 58.33occurrence of clause (1), (2), or (3), the governmental subdivision may record a certificate 58.34referring to the land, the original conveyance, and to the release under this paragraph.58.35EFFECTIVE DATE.This section is effective July 1, 2009.59.1    Sec. 6. Minnesota Statutes 2008, section 282.01, is amended by adding a subdivision 59.2to read:59.3    Subd. 1g.Conditional use deed fees.(a) A governmental subdivision of the state 59.4applying for a conditional use deed under subdivision 1a, paragraph (e), must submit a fee 59.5of $250 to the commissioner of revenue along with the application. If the application is 59.6denied, the commissioner shall refund $150 of the application fee.59.7(b) The proceeds from the fees must be deposited in a Department of Revenue 59.8conditional use deed revolving fund. The sums deposited into the revolving fund are 59.9appropriated to the commissioner of revenue for the purpose of making the refunds 59.10described in this subdivision, and administering conditional use deed laws.59.11EFFECTIVE DATE.This section is effective for applications received by the 59.12commissioner after June 30, 2009.59.13    Sec. 7. Minnesota Statutes 2008, section 282.01, subdivision 2, is amended to read:59.14    Subd. 2. Conservation lands; county board supervision.(a) Lands classified as 59.15conservation lands, unless reclassified as nonconservation lands, sold to a governmental 59.16subdivision of the state, designated as lands primarily suitable for forest production and 59.17sold as hereinafter provided, or released from the trust in favor of the taxing districts, as 59.18herein provided, will must be held under the supervision of the county board of the county 59.19within which such the parcels lie. and must not be conveyed or sold unless the lands are:59.20The county board may, by resolution duly adopted, declare lands classified as 59.21conservation lands as primarily suitable for timber production and as lands which should 59.22be placed in private ownership for such purposes. If such action be approved by the 59.23commissioner of natural resources, the lands so designated, or any part thereof, may be 59.24sold by the county board in the same manner as provided for the sale of lands classified as 59.25nonconservation lands. Such county action and the approval of the commissioner shall be 59.26limited to lands lying within areas zoned for restricted uses under the provisions of Laws 59.271939, chapter 340, or any amendments thereof.59.28(1) reclassified as nonconservation lands;59.29(2) conveyed to a governmental subdivision of the state under subdivision 1a;59.30(3) released from the trust in favor of the taxing districts as provided in paragraph 59.31(b); or59.32(4) conveyed or sold under the authority of another general or special law.59.33(b) The county board may, by resolution duly adopted, resolve that certain lands 59.34classified as conservation lands shall be devoted to conservation uses and may submit 59.35such a resolution to the commissioner of natural resources. If, upon investigation, 60.1the commissioner of natural resources determines that the lands covered by such the60.2resolution, or any part thereof, can be managed and developed for conservation purposes, 60.3the commissioner shall make a certificate describing the lands and reciting the acceptance 60.4thereof on behalf of the state for such purposes. The commissioner shall transmit the 60.5certificate to the county auditor, who shall note the same upon the auditor's records and 60.6record the same with the county recorder. The title to all lands so accepted shall be held 60.7by the state free from any trust in favor of any and all taxing districts and such the lands 60.8shall be devoted thereafter to the purposes of forestry, water conservation, flood control, 60.9parks, game refuges, controlled game management areas, public shooting grounds, or 60.10other public recreational or conservation uses, and managed, controlled, and regulated 60.11for such purposes under the jurisdiction of the commissioner of natural resources and 60.12the divisions of the department.60.13(c) All proceeds derived from the sale of timber, lease of crops of hay, or other 60.14revenue from lands under the jurisdiction of the commissioner of natural resources shall 60.15be credited to the general fund of the state.60.16In case (d) If the commissioner of natural resources shall determine determines that 60.17any tract of land so held acquired by the state under paragraph (b) and situated within or 60.18adjacent to the boundaries of any governmental subdivision of the state is suitable for use 60.19by such the subdivision for any authorized public purpose, the commissioner may convey 60.20such the tract by deed in the name of the state to such the subdivision upon the filing 60.21with the commissioner of a resolution adopted by a majority vote of all the members 60.22of the governing body thereof, stating the purpose for which the land is desired. The 60.23deed of conveyance shall be upon a form approved by the attorney general and must be 60.24conditioned upon continued use for the purpose stated in the resolution. All proceeds 60.25derived from the sale of timber, lease of hay stumpage, or other revenue from such 60.26lands under the jurisdiction of the natural resources commissioner shall be paid into the 60.27general fund of the state.60.28(e) The county auditor, with the approval of the county board, may lease conservation 60.29lands remaining under the jurisdiction supervision of the county board and sell timber 60.30and hay stumpage thereon in the manner hereinafter provided, and all proceeds derived 60.31therefrom shall be distributed in the same manner as provided in section 
         282.04. 60.32EFFECTIVE DATE.This section is effective July 1, 2009.60.33    Sec. 8. Minnesota Statutes 2008, section 282.01, subdivision 3, is amended to read:60.34    Subd. 3. Nonconservation lands; appraisal and sale.(a) All parcels of land 60.35classified as nonconservation, except those which may be reserved, shall be sold as 61.1provided, if it is determined, by the county board of the county in which the parcels lie, 61.2that it is advisable to do so, having in mind their accessibility, their proximity to existing 61.3public improvements, and the effect of their sale and occupancy on the public burdens. 61.4Any parcels of land proposed to be sold shall be first appraised by the county board of 61.5the county in which the parcels lie. The parcels may be reappraised whenever the county 61.6board deems it necessary to carry out the intent of sections 
         282.01 to 
         282.13.61.7(b) In an appraisal the value of the land and any standing timber on it shall be 61.8separately determined. No parcel of land containing any standing timber may be sold until 61.9the appraised value of the timber on it and the sale of the land have been approved by the 61.10commissioner of natural resources. The commissioner shall base review of a proposed 61.11sale on the policy and considerations specified in subdivision 1. The decision of the 61.12commissioner shall be in writing and shall state the reasons for it. The commissioner's 61.13decision is exempt from the rulemaking provisions of chapter 14 and section 
         14.38661.14does not apply. The county may appeal the decision of the commissioner in accordance 61.15with chapter 14. 61.16(c) In any county in which a state forest or any part of it is located, the county 61.17auditor shall submit to the commissioner at least 60 days before the first publication of the 61.18list of lands to be offered for sale a list of all lands included on the list which are situated 61.19outside of any incorporated municipality. If, at any time before the opening of the sale, the 61.20commissioner notifies the county auditor in writing that there is standing timber on any 61.21parcel of such land, the parcel shall not be sold unless the requirements of this section 61.22respecting the separate appraisal of the timber and the approval of the appraisal by the 61.23commissioner have been complied with. The commissioner may waive the requirement 61.24of the 60-day notice as to any parcel of land which has been examined and the timber 61.25value approved as required by this section.61.26(d) If any public improvement is made by a municipality after any parcel of land has 61.27been forfeited to the state for the nonpayment of taxes, and the improvement is assessed in 61.28whole or in part against the property benefited by it, the clerk of the municipality shall 61.29certify to the county auditor, immediately upon the determination of the assessments for 61.30the improvement, the total amount that would have been assessed against the parcel of land 61.31if it had been subject to assessment; or if the public improvement is made, petitioned for, 61.32ordered in or assessed, whether the improvement is completed in whole or in part, at any 61.33time between the appraisal and the sale of the parcel of land, the cost of the improvement 61.34shall be included as a separate item and added to the appraised value of the parcel of land 61.35at the time it is sold. No sale of a parcel of land shall discharge or free the parcel of land 61.36from lien for the special benefit conferred upon it by reason of the public improvement 62.1until the cost of it, including penalties, if any, is paid. The county board shall determine 62.2the amount, if any, by which the value of the parcel was enhanced by the improvement and 62.3include the amount as a separate item in fixing the appraised value for the purpose of sale. 62.4In classifying, appraising, and selling the lands, the county board may designate the tracts 62.5as assessed and acquired, or may by resolution provide for the subdivision of the tracts into 62.6smaller units or for the grouping of several tracts into one tract when the subdivision or 62.7grouping is deemed advantageous for the purpose of sale. Each such smaller tract or larger 62.8tract must be classified and appraised as such before being offered for sale. If any such 62.9lands have once been classified, the board of county commissioners, in its discretion, may, 62.10by resolution, authorize the sale of the smaller tract or larger tract without reclassification.62.11EFFECTIVE DATE.This section is effective July 1, 2009.62.12    Sec. 9. Minnesota Statutes 2008, section 282.01, subdivision 4, is amended to read:62.13    Subd. 4. Sale: method, requirements, effects. The sale authorized under 62.14subdivision 3 must be conducted by the county auditor at the county seat of the county in 62.15which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may 62.16be conducted in any county facility within the county. The sale must not be for less than 62.17the appraised value except as provided in subdivision 7a. The parcels must be sold for 62.18cash only and at not less than the appraised value, unless the county board of the county 62.19has adopted a resolution providing for their sale on terms, in which event the resolution 62.20controls with respect to the sale. When the sale is made on terms other than for cash only 62.21(1) a payment of at least ten percent of the purchase price must be made at the time of 62.22purchase, and the balance must be paid in no more than ten equal annual installments, or 62.23(2) the payments must be made in accordance with county board policy, but in no event 62.24may the board require more than 12 installments annually, and the contract term must not 62.25be for more than ten years. Standing timber or timber products must not be removed from 62.26these lands until an amount equal to the appraised value of all standing timber or timber 62.27products on the lands at the time of purchase has been paid by the purchaser. If a parcel of 62.28land bearing standing timber or timber products is sold at public auction for more than 62.29the appraised value, the amount bid in excess of the appraised value must be allocated 62.30between the land and the timber in proportion to their respective appraised values. In that 62.31case, standing timber or timber products must not be removed from the land until the 62.32amount of the excess bid allocated to timber or timber products has been paid in addition 62.33to the appraised value of the land. The purchaser is entitled to immediate possession, 62.34subject to the provisions of any existing valid lease made in behalf of the state.63.1For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price 63.2is subject to interest at the rate determined pursuant to section 
         549.09. The unpaid balance 63.3of the purchase price for sales occurring after December 31, 1990, is subject to interest 63.4at the rate determined in section 
         279.03, subdivision 1a. The interest rate is subject to 63.5change each year on the unpaid balance in the manner provided for rate changes in section 63.6549.09
          or 
         279.03, subdivision 1a, whichever, is applicable. Interest on the unpaid contract 63.7balance on sales occurring before July 1, 1982, is payable at the rate applicable to the sale 63.8at the time that the sale occurred. 63.9EFFECTIVE DATE.This section is effective July 1, 2009.63.10    Sec. 10. Minnesota Statutes 2008, section 282.01, subdivision 7, is amended to read:63.11    Subd. 7. County sales; notice, purchase price, disposition. The sale must 63.12commence at the time determined by the county board of the county in which the parcels 63.13are located. The county auditor shall offer the parcels of land in order in which they 63.14appear in the notice of sale, and shall sell them to the highest bidder, but not for a sum 63.15less than the appraised value, until all of the parcels of land have been offered. Then the 63.16county auditor shall sell any remaining parcels to anyone offering to pay the appraised 63.17value, except that if the person could have repurchased a parcel of property under section 63.18282.012
          or 
         282.241, that person may not purchase that same parcel of property at the sale 63.19under this subdivision for a purchase price less than the sum of all taxes, assessments, 63.20penalties, interest, and costs due at the time of forfeiture computed under section 
         282.251, 63.21and any special assessments for improvements certified as of the date of sale. The sale 63.22must continue until all the parcels are sold or until the county board orders a reappraisal or 63.23withdraws any or all of the parcels from sale. The list of lands may be added to and the 63.24added lands may be sold at any time by publishing the descriptions and appraised values. 63.25The added lands must be: (1) parcels of land that have become forfeited and classified 63.26as nonconservation since the commencement of any prior sale; (2) parcels classified as 63.27nonconservation that have been reappraised; (3) parcels that have been reclassified as 63.28nonconservation; or (4) other parcels that are subject to sale but were omitted from the 63.29existing list for any reason. The descriptions and appraised values must be published in 63.30the same manner as provided for the publication of the original list. Parcels added to the 63.31list must first be offered for sale to the highest bidder before they are sold at appraised 63.32value. All parcels of land not offered for immediate sale, as well as parcels that are offered 63.33and not immediately sold, continue to be held in trust by the state for the taxing districts 63.34interested in each of the parcels, under the supervision of the county board. Those parcels 63.35may be used for public purposes until sold, as directed by the county board. 64.1EFFECTIVE DATE.This section is effective July 1, 2009.64.2    Sec. 11. Minnesota Statutes 2008, section 282.01, subdivision 7a, is amended to read:64.3    Subd. 7a. City sales; alternate procedures. Land located in a home rule charter 64.4or statutory city, or in a town which cannot be improved because of noncompliance with 64.5local ordinances regarding minimum area, shape, frontage or access may be sold by the 64.6county auditor pursuant to this subdivision if the auditor determines that a nonpublic sale 64.7will encourage the approval of sale of the land by the city or town and promote its return 64.8to the tax rolls. If the physical characteristics of the land indicate that its highest and best 64.9use will be achieved by combining it with an adjoining parcel and the city or town has not 64.10adopted a local ordinance governing minimum area, shape, frontage, or access, the land 64.11may also be sold pursuant to this subdivision. If the property consists of an undivided 64.12interest in land or land and improvements, the property may also be sold to the other 64.13owners under this subdivision. The sale of land pursuant to this subdivision shall be 64.14subject to any conditions imposed by the county board pursuant to section 
         282.03. The 64.15governing body of the city or town may recommend to the county board conditions to be 64.16imposed on the sale. The county auditor may restrict the sale to owners of lands adjoining 64.17the land to be sold. The county auditor shall conduct the sale by sealed bid or may select 64.18another means of sale. The land shall be sold to the highest bidder but in no event shall the 64.19land and may be sold for less than its appraised value. All owners of land adjoining the 64.20land to be sold shall be given a written notice at least 30 days prior to the sale. 64.21This subdivision shall be liberally construed to encourage the sale and utilization 64.22of tax-forfeited land, to eliminate nuisances and dangerous conditions and to increase 64.23compliance with land use ordinances.64.24EFFECTIVE DATE.This section is effective July 1, 2009.64.25    Sec. 12. Minnesota Statutes 2008, section 287.2205, is amended to read:64.26287.2205 TAX-FORFEITED LAND. 64.27    Before a state deed for tax-forfeited land may be issued, the deed tax must be paid 64.28by the purchaser of tax-forfeited land whether the purchase is the result of a public 64.29auction or private sale or a repurchase of tax-forfeited land. State agencies and local 64.30units of government that acquire tax-forfeited land by purchase or any other means are 64.31subject to this section. The deed tax is $1.65 for a conveyance of tax-forfeited lands to a 64.32governmental subdivision for an authorized public use under section 
         282.01, subdivision 64.331a, or for redevelopment purposes under section 282.01, subdivision 1b. 65.1EFFECTIVE DATE.This section is effective July 1, 2009.65.2    Sec. 13.  REPEALER.65.3Minnesota Statutes 2008, sections 282.01, subdivisions 9, 10, and 11; and 383A.76,65.4are repealed.65.5EFFECTIVE DATE.This section is effective July 1, 2009.65.6ARTICLE 665.7MISCELLANEOUS65.8    Section 1. Minnesota Statutes 2008, section 270B.14, subdivision 16, is amended to 65.9read:65.10    Subd. 16. Disclosure to law enforcement authorities. Under circumstances 65.11involving threat of death or physical injury to any individual, or harassment of a 65.12Department of Revenue employee, the commissioner may disclose return information 65.13to the extent necessary to apprise appropriate federal, state, or local law enforcement 65.14authorities of such circumstances. For purposes of this subdivision, "harassment" is 65.15purposeful conduct directed at an individual and causing an individual to feel frightened, 65.16threatened, oppressed, persecuted, or intimidated. For purposes of harassment, the return 65.17information that initially can be disclosed is limited to the name, address, and phone 65.18number of the harassing individual, the name of the employee being harassed, and the 65.19nature and circumstances of the harassment. Data disclosed under this subdivision are 65.20classified under section 
         13.82 once they are received by the law enforcement authority.  65.21EFFECTIVE DATE.This section is effective the day following final enactment.65.22    Sec. 2. Minnesota Statutes 2008, section 270C.12, is amended by adding a subdivision 65.23to read:65.24    Subd. 5.Duration.Notwithstanding the provisions of any statutes to the contrary, 65.25including section 15.059, the coordinating committee as established by this section to 65.26oversee and coordinate preparation of the microdata samples of income tax returns and 65.27other information shall not expire.65.28EFFECTIVE DATE.This section is effective the day following final enactment.65.29    Sec. 3. Minnesota Statutes 2008, section 270C.446, subdivision 2, is amended to read:66.1    Subd. 2.  Required and excluded tax preparers. (a) Subject to the limitations of 66.2paragraph (b), the commissioner must publish lists of tax preparers as defined in section 66.3289A.60, subdivision 13
         , paragraph (f), who have been convicted under section 
         289A.6366.4for returns or claims prepared as a tax preparer or assessed penalties in excess of $1,000 66.5under section 
         289A.60, subdivision 13, paragraph (a). 66.6    (b) For the purposes of this section, tax preparers are not subject to publication if: 66.7    (1) an administrative or court action contesting the penalty has been filed or served 66.8and is unresolved at the time when notice would be given under subdivision 3; 66.9    (2) an appeal period to contest the penalty has not expired; or 66.10    (3) the commissioner has been notified that the tax preparer is deceased. 66.11EFFECTIVE DATE.This section is effective the day following final enactment.66.12    Sec. 4. Minnesota Statutes 2008, section 270C.446, subdivision 5, is amended to read:66.13    Subd. 5. Removal from list. The commissioner shall remove the name of a tax 66.14preparer from the list of tax preparers published under this section:66.15(1) when the commissioner determines that the name was included on the list in error;66.16(2) within 90 days after the preparer has demonstrated to the commissioner that 66.17the preparer fully paid all fines imposed, served any suspension, satisfied any sentence 66.18imposed, and demonstrated to the satisfaction of the commissioner that the preparer has66.19successfully completed any remedial actions required by the commissioner, the State 66.20Board of Accountancy, or the Lawyers Board of Professional Responsibility; or66.21(3) when the commissioner has been notified that the tax preparer is deceased.66.22EFFECTIVE DATE.This section is effective the day following final enactment.66.23    Sec. 5. Minnesota Statutes 2008, section 270C.56, subdivision 1, is amended to read:66.24    Subdivision 1.  Liability imposed. A person who, either singly or jointly with 66.25others, has the control of, supervision of, or responsibility for filing returns or reports, 66.26paying taxes, or collecting or withholding and remitting taxes and who fails to do so, or a 66.27person who is liable under any other law, is liable for the payment of taxes, penalties, and 66.28interest arising under chapters 295, 296A, 297A, 297F, and 297G, or sections 
         256.9658, 66.29290.92,
          and 
         297E.02, and, for the taxes listed in this subdivision, the applicable penalties 66.30for nonpayment under section 289A.60 and interest on those taxes. 66.31EFFECTIVE DATE.This section is effective the day following final enactment.67.1    Sec. 6. Minnesota Statutes 2008, section 289A.41, is amended to read:67.2289A.41 BANKRUPTCY; SUSPENSION OF TIME.67.3The running of the period during which a tax must be assessed or collection 67.4proceedings commenced is suspended during the period from the date of a filing of a 67.5petition in bankruptcy until 30 days after either notice to the commissioner of revenue that 67.6the bankruptcy proceedings have been closed or dismissed, or notice that the automatic 67.7stay has been terminated or has expired, whichever occurs first.67.8The suspension of the statute of limitations under this section applies to the person 67.9the petition in bankruptcy is filed against and other persons who may also be wholly or 67.10partially liable for the tax.67.11EFFECTIVE DATE.This section is effective the day following final enactment.67.12ARTICLE 767.13APPROPRIATIONS67.14    Section 1. EDUCATION.67.15    Subdivision 1.Department of Education.The sums indicated in this section are 67.16appropriated from the general fund to the Department of Education for the fiscal years 67.17designated.67.18    Subd. 2.General education aid.For general education aid under Minnesota 67.19Statutes, section 126C.13, subdivision 4:

67.20$ ...,...,000.....201067.21$ ...,...,000.....2011

67.22The 2010 appropriation includes $...,...,000 for 2009 and $...,...,000 for 2010.67.23The 2011 appropriation includes $...,...,000 for 2010 and $...,...,000 for 2011.67.24    Subd. 3.Special education; regular.For special education aid under Minnesota 67.25Statutes, section 125A.75:

67.26$...,...,000.....201067.27$...,...,000.....2011

67.28The 2010 appropriation includes $...,...,000 for 2009 and $...,...,000 for 2010.67.29The 2011 appropriation includes $...,...,000 for 2010 and $...,...,000 for 2011.67.30    Subd. 4.Special education; excess costs.For excess cost aid under Minnesota 67.31Statutes, section 125A.79, subdivision 7:

68.1$...,...,000.....201068.2$...,...,000.....2011

68.3The 2010 appropriation includes $...,...,000 for 2009 and $...,...,000 for 2010.68.4The 2011 appropriation includes $...,...,000 for 2010 and $...,...,000 for 2011.

68.5Sec. 2. HUMAN SERVICES

68.6APPROPRIATIONS68.7Available for the Year68.8Ending June 3068.920102011

68.10Subdivision 1.Total Appropriation$...,...,000$...,...,000

68.11The sums shown in the columns marked 68.12"Appropriations" are appropriated from the 68.13general fund to the Department of Human 68.14Services for the purposes specified in the 68.15following subdivisions. "The first year" is 68.16fiscal year 2010. "The second year" is fiscal 68.17year 2011.

68.18Subd. 2.Health Care

68.1968.20(a) Medical Assistance Basic Health Care Grants; Families and Children...,...,000...,...,000

68.2168.22(b) Medical Assistance Basic Health Care Grants; Elderly and Disabled...,...,000...,...,000

68.23Inpatient Hospital Rate Increase. Effective 68.24for services rendered on or after July 1, 2009, 68.25the commissioner of human services shall 68.26provide a ... percent increase in medical 68.27assistance payments for inpatient hospital 68.28services.

68.2968.30(c) Medical Assistance Long-Term Care Facilities Grants...,...,000...,...,000

68.31Provider Rate Increase. (a) Effective July 68.321, 2009, the commissioner of human services 68.33shall pay to each nursing facility reimbursed 68.34under Minnesota Statutes, section 256B.434, 68.35an operating payment rate adjustment equal 69.1to ... percent of the operating payment rates 69.2determined by the blending in Minnesota 69.3Statutes, section 256B.441, subdivision 55, 69.4paragraph (a).69.5(b) Effective July 1, 2009, the commissioner 69.6of human services shall pay to each 69.7intermediate care facility for persons with 69.8developmental disabilities reimbursed under 69.9Minnesota Statutes, section 256B.5012, an 69.10adjustment to the total operating payment 69.11rate of ... percent.