2E Relating to taxation and the financing and operation of state and local government; making policy, technical, administrative, enforcement, collection, refund, and other changes to income, franchise, property, sales and use, motor vehicle, estate, gambling, solid waste management, health care provider, cigarette and tobacco products, insurance premiums, aggregate removal, mortgage, deed, occupation, and production taxes, and other taxes and tax-related provisions; conforming provisions to certain changes in federal laws

ARTICLE 1 - INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND INSURANCE PREMIUM TAXES

Providing and modifying income tax credits; providing a Minnesota business investment company tax credit; modifying a certain prior provision relating to additions to federal taxable income for individuals, trusts, and estates, requiring taxpayers to add back any mortgage interest on a second residence taken as an itemized deduction on the federal return; providing a certain income tax subtraction for a shareholder of an S corporation or a partner of a partnership; modifying certain provisions relating to individual income tax nexus rules for a single member limited liability company (LLC), individual income tax rates, and inflation adjustments langague; providing an investment tax credit for qualified high technology, biotechnology, or medical device or green manufacturing business; providing an historic structure rehabilitation income tax credit; providing a film production investment credit; modifying the alternative minimum tax rate for individuals, trusts, and estates; providing a surtax on certain interest income derived from conduct of a trade of business; clarifying the capital gain on the sale of a single member LLC; modifying apportionment of net income; providing for a Minnesota business investment company credit; repealing certain provisions relating to low income motor fuels credit and the dedication of revenue from the motor vehicle lease sales tax

ARTICLE 2 - FEDERAL UPDATE

Updating administrative tax provisions and the federal definition of taxable income; conforming provisions to certain changes in federal laws; providing for certain additions and subtractions to federal taxable income (FTI) for individuals and corporations; adopting federal changes to federal adjusted gross income (FAGI); conforming changes to the calculation of the ratio used by nonresidents and part-year residents to apportionment of state tax; providing for adjustments of alternative minimum taxable income; updating certain property tax refund and estate tax references

ARTICLE 3 - SALES AND EXCISE TAXES

Modifying and authorizing certain sales tax exemptions and modifying and authorizing certain local governmental sales taxes; modifying the fee exemption for certain short-term motor vehicle rentals; defining solicitor; modifying certain upfront sales tax exemption requirements for capital equipment; providing a construction materials sales tax exemption for a certain meat processing facility; modifying the imposition and refund application of sales tax on capital equipment; modifying certain provisions relating to the Minneapolis downtown taxing area, the Mankato local sales tax revenue use requirements, the St. Paul local sales tax revenue use requirements, and unexpended funds, interest, and requirements for the neighborhood STAR program, providing for a Rochester lodging tax increase, modifying Owatonna local sales tax revenue use requirements, the Mankato local restaurant and entertainment taxes use requirements, the Cook county local sales tax revenue use requirements and increasing bond limits, and authorizing the imposition of an additional Rochester food and beverage tax

ARTICLE 4 - PROPERTY TAXES

Relating to property taxes; modifying truth in taxation procedures; allowing school districts with interdistrict cooperative agreement career and technical programs to allocate the levy for the program among the participating districts; modifying referendum market value exclusions for seasonal recreational property, clarify the effective date for school levies for retired employee health benefits; modifying certain duties of the emergency medical services taxing district board; clarifying the property tax exemption for certain institutions of public charity currently exempt from federal income taxation; changing and providing certain property tax exemptions for utility pollution control, apprenticeship training facilities, electric generation personal property, apprenticeship training facilities, phaseout of exemptions for electric generation personal property, elderly living facilities exemption, nursing home property, railroad wye connection, and leased seasonal recreational land; modifying bovine tuberculosis credit definitions and calculation requirements; increasing the property tax class rate on public utility properties; providing for classification of certain seasonal recreational commercial property and eliminating certain seasonal recreational property levy limits; eliminating certain truth in taxation hearing requirements and temporarily suspending advertising requirements for proposed property taxes; increasing the property tax amount for unpaid real estate taxes installment payments; modifying publication correction requirements; allowing airport authorities to exercise the municipal power of airport zoning; extending the deadline for the establishment of special service districts and housing improvement areas without requiring a special law and specifying certain prerequisites for housing improvement areas; expanding county special assessments authority for the the abatement of nuisances; authorizing the seaway port authority of Duluth to establish a property tax levy to replace the mandatory city property tax levy; defining implicit price deflator; modifying certain provisions relating to the fiscal disparities programs within the seven-county metropolitan area, eliminating the one-year lag in determining fiscal disparities contribution net tax capacities and distribution levies; authorizing local governments to sell emergency certificates of indebtedness under budget (revenue) shortfall conditions, specifying levy restrictions, defining local government to include counties, cities, or towns and defining receipts; authorizing certain meeting authority for the Red River watershed management board; removing the sunset date for emergency medical services special taxing districts; clarifying the platted lands law effective date; specifying certain conservation management plans requirements for the rural preserve property tax program; authorizing the city of Cloquet and Perch Lake township to establish the Cloquet area fire and ambulance taxing district for cooperative fire and ambulance services, establishing a board and a property tax; requiring the commissioners of revenue and agriculture to study and report on the property tax treatment of horse breeding and horse boarding properties; providing for abatements for businesses with disrupted access; modifying certain duties relating to areawide tax rate determinations by county auditors and requiring report to the legislature by the administrative auditor; providing a public charity purpose statement; repealing certain provisions relating to truth in taxation requirements, levy limits applicable to certain county governments and cities, and the allocation of the statewide general levy between seasonal recreational and commercial industrial properties

ARTICLE 5 - AIDS AND CREDITS

Modifying market value credit reductions; eliminating the targeted property tax refund; providing city aid base adjustments for certain cities; providing county program aid reductions; providing local government aid reductions; requiring the commissioner of revenue to compute 2010, 2011, and 2012 city and county aid reductions, defining the levy plus aid revenue base; repealing certain provisions relating to the targeted refund and utility transition aid

ARTICLE 6 - LOCAL DEVELOPMENT

Prohibiting new municipal incorporations; defining special services for a special service district for cities that includes a portion of the central corridor light rail transit project; modifying tax increment financing (TIF) district standards, modifying TIF plan content requirements and certain annual financial reporting requirements; establishing compact development districts as a type of TIF district, specifying conditions for establishment and tax increments payment uses, specifying duration limits; specifying certain limitations on administrative expenses; authorizing expenditure of tax increments from districts located within transit improvement areas outside of the district; extending tax increment financing (TIF) tourism facility property development region eligibility to Pine, Mille Lacs, Kanabec, Isanti and Chisago counties; extending the five-year rule for certain redevelopment, renewal or renovation districts after the certification of the district under certain conditions; eliminating additional JOBZ designations after a certain date; authorizing the city of Brooklyn Park to establish housing replacement TIF projects; modifying the availability of the public financing for public improvements at the Mall of America, authorizing the sale of revenue bonds to pay for public improvements not related to parking, and imposing a labor peace agreement requirement as a condition of providing financing; modifying the description of a TIF area in the city of Oakdale; authorizing the cities of Chisago City and Lindstrom and Chisago county to enter into a joint powers agreement to develop a business park; authorizing the city of Mankato to expend increments from a certain TIF district and specifying project requirements; authorizing the city of North Mankato to expand the boundaries of an existing TIF district to include specified property; authorizing a duration extension for a TIF district in the city of St. Louis Park; authorizing the St. Paul housing and redevelopment authority to establish the central corridor light rail transit project area as a redevelopment project; authorizing the cities of St. Paul and Fridley to operate under a certain law granting housing improvement districts authority; authorizing certain existing TIF districts in the city of St. Paul to be allowed to expend money for central corridor costs; authorizing a certain TIF authority for the city of Sauk Rapids and specifying conditions; authorizing the South St. Paul housing and redevelopment authority to establish a redevelopment TIF district; appropriating money from the Minnesota investment fund to commissioner of employment and economic development (DEED) for a loan to an aircraft manufacturing and assembly company to establish an aircraft completion center at the Minneapolis-St. Paul international airport; authorizing the Mountain Iron economic development authority and the Winona county economic development authority to form or become a member of a limited liability company (LLC) for developing a community-based wind energy project; authorizing the Seaway port authority of Duluth to create TIF district consisting of one or more certain parcels of land exempt from the five-year rule; repealing certain provisions relating to expenditure limitations from a certain Bloomington TIF district and a certain review requirement relating to Mall of America financing information

ARTICLE 7 - PUBLIC FINANCE

Providing for the issuance of state general obligation bonds as tax credit bonds, interest subsidy bonds, or a combination of the two; extending the sunset for the authority to issue bonds by the state fair board; specifying certain pledge of school district or intermediate school districts full faith and credit requirements relating to federal interest subsidy payments; modifying certain mail elections requirements; modifying terms and conditions relating to issuance of obligations and financing of public improvements; modifying local government unit bond issuance requirements for airport projects; modifying certain town board certificates of indebtedness payment requirements; extending the maximum maturity of certificates of indebtedness issued by towns; modifying certain public safety radio system bond issuance requirements; specifying certain federal interest subsidy payment requirements; modifying certain county and multicounty housing and redevelopment authority; modifying certain bidding, payment, and performance bond requirements for housing and redevelopment authorities (HRAs); modifying certain HRA project regulations, expanding the definition of project in the municipal industrial development law; expanding the leasing authority to nonprofit for cities operating a program of public recreation and playgrounds; modifying the definitions of annual volume cap and manufacturing project in the bond allocation law; defining rating category for escrow account securities purposes; extending the maturity date of bond issued by St. Paul for public buildings or parking structure; providing the St. Paul port authority application fee credit toward a future bond sale for District Cooling St. Paul, Inc.

ARTICLE 8 - MINERALS

Modifying certain provisions governing the taconite tax and the distribution of revenues from the tax; specifying certain 2009 occupation tax proceeds collection requirements; extending the authorization for taconite economic development fund use of the production tax for a biomass energy facility; clarifying certain taconite and iron sulphides production tax rate application requirements; providing certain fund transfers for school distribution purposes if insufficient production tax proceeds; applying the definition of taconite assistance area for distribution of taconite municipal aid account purposes; specifying fund retention requirements for Breitung township; providing grants or loans for a certain green manufacturing facility located within the taconite tax relief area, appropriating money from the Douglas J. Johnson economic protection trust fund upon approval of the Iron Range resources and rehabilitation board (LRRRB)

ARTICLE 9 - DEPARTMENT INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

Modifying corporate franchise filing requiring requirements for members of a unitary business; specifying certain filing requirements for information returns for qualified intermediaries; modifying the time limit for filing estate tax returns; modifying the treatment of federal tax changes for assessment of taxes; providing penalties for failure to withhold tax from the wages of an employee or from pay to independent contractors in the construction trades; clarifying a K-12 education income tax subtraction for certain vehicle expenses of a qualifying child; modifying income credit allowances for the Minnesota working family credit; clarifying certain property tax statement confession of judgments for manufactured homes; repealing a certain rule relating to school tuition and transportation

ARTICLE 10 - DEPARTMENT SALES AND USE TAXES

Modifying the sales tax exemption for sales to local government units and
nonprofit groups to exclude alcohol; providing the definition of motor vehicle for purposes of the metropolitan transit improvement tax and the greater Minnesota transportation tax; repealing a certain provision relating to constitutional prohibitions for general exemptions

ARTICLE 11 - DEPARTMENT SPECIAL TAXES

Updating the property tax classification provision for agricultural property; modifying mortgage registry tax exemptions and certain payment of tax requirements; clarifying the deed tax transfer on death provision; clarifying certain gross receipt transfer of accounts receivable requirements for surgical centers and wholesale drug distributors; including surgical centers for exemptions for amounts paid for legend drugs; clarifying gasoline tax filing provisions; modifying certain gambling tax provisions, specifying certain gambling organization signature requirements for tax returns and providing for filing date provisions; modifying certain electronic payment filing requirements relating to liabilities for pull-tab and tipboard distributors, tobacco products distributors, liquor distributors, insurance companies, and the metropolitan solid waste landfill fee; modifying certain taconite tax allocation requirements for school districts; modifying metropolitan solid waste landfill fee payment requirements; repealing certain provisions relating to mortgage registry tax stamps and the division and distribution of mineral tax proceeds

ARTICLE 12 - DEPARTMENT PROPERTY TAXES AND AIDS

Modifying the agricultural homestead property tax first tier valuation limit; indexing low value for nonproductive land (green acres), clarifying real estate value determinations for tax deferment purposes; modifying the aggregate resource preservation property tax act; modifying requirements for disaster related abatements and credits for damaged properties; providing for inclusion of cooperative associations; modifying certain homestead application requirements; clarifying property requirements for homestead classification of trust held property; modifying the class 2c managed forest land provision and clarifying rules; modifying and clarifying class 4c property application requirements; clarifying classification of unimproved real property; modifying the date requirement for personal property assessment certification of pipeline utility property and transmission line property by the commissioner of revenue; modifying certain provisions of county boards of appeal and equalization; conforming certain calculation of annual average market value of class 2c managed forest land requirements and modifying incentive payment calculations under the sustainable forest incentive act; modifying certain local government aid (LGA) provisions, modifying the city revenue need formula; repealing certain rules

ARTICLE 13 - DEPARTMENT CONDITIONAL USE DEEDS

Modifying the process for land classification and reclassification as conservation and nonconservation tax-forfeited lands, specifying certain duties of the county board; providing for conveyances to public entities under certain conditions; modifying deed of conveyance form requirements; modifying regulations for conveyance of tax-forfeited land to a governmental subdivision and the reverter for failure to use provision; imposing conditional use deed fees on applications; modifying county board supervision duties for conservation lands; modifying certain tax-forfeited conservation and nonconservation land sale and method requirements; repealing certain provisions relating to conveyance of targeted neighborhood lands and certain sale ratification provisions

ARTICLE 14 - DEPARTMENT MISCELLANEOUS

Regulating tax preparers; adding harassment of a department of revenue employee to incidents warranting the disclosure of tax data to law enforcement authorities; modifying duties of the commissioner of revenue relating to publishing of tax preparers lists, modifying penalty and interest assessments procedures for personal liability; clarifying certain suspension of time requirements for tax assessment or collection bankruptcy proceedings

ARTICLE 15 - MISCELLANEOUS

Modifying certain tax preparation services provisions; providing a procedure for filing claims for refunds of payments imposing personal liability on responsible officers and directors for unpaid taxes of a business entity; modifying mortgage registry tax payments requirements; clarifying estate tax nexus to impose tax on pass-through interests of nonresident decedents; modifying hospital and surgical center taxes under the MinnesotaCare program; modifying certain regulations for gambling tax reports and records, specifying certain audit, certified inventory and cash count requirements, and requiring the development of reporting standards by the commissioner of revenue; exempting service charges or fees imposed by certain home rule charter cities from the solid waste management tax; increasing certain charitable organization revenue amounts requiring an audit and specifying certain gambling tax compliance requirements; clarifying certain local police and firefighters relief association amortization state aid distribution requirements and appropriating money; providing for a contingency appropriation to the commissioner of management and budget for certain economic development purposes
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