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

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

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

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

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

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

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

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

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

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

4.27 	Sec. 5. Minnesota Statutes 2008, section 289A.31, subdivision 5, is amended to read:
4.28 		Subd. 5.Withholding tax, withholding from payments to out-of-state 
4.29 	contractors, and withholding by partnerships and small business corporations. (a) 
4.30 	Except as provided in paragraph (b), an employer or person withholding tax under section 
4.31 	290.92 or 290.923, subdivision 2, who fails to pay to or deposit with the commissioner a 
4.32 	sum or sums required by those sections to be deducted, withheld, and paid, is personally 
4.33 	and individually liable to the state for the sum or sums, and added penalties and interest, 
5.1 	and is not liable to another person for that payment or payments. The sum or sums 
5.2 	deducted and withheld under section 290.92, subdivision 2a or 3, or 290.923, subdivision 
5.3 	2, 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, 
5.5 	subdivision 2, fails to deduct and withhold the tax in violation of those sections, and later 
5.6 	the taxes against which the tax may be credited are paid, the tax required to be deducted 
5.7 	and withheld will not be collected from the employer. This does not, however, relieve the 
5.8 	employer from liability for any penalties and interest otherwise applicable for failure to 
5.9 	deduct 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 
5.12 	described 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 
5.14 	described in section 270C.59.
5.15 	(e) A partnership or S corporation required to withhold and remit tax under section 
5.16 	290.92, subdivisions 4b and 4c, is liable for payment of the tax to the commissioner, and a 
5.17 	person having control of or responsibility for the withholding of the tax or the filing of 
5.18 	returns 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 
5.20 	1, is liable to the state for the amount required to be deducted, and is not liable to an 
5.21 	out-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 
5.23 	required to do so under section 290.92, subdivision 2a, by reason of treating such 
5.24 	employee as not being an employee, then the liability for tax is equal to three percent of 
5.25 	the wages paid to the employee. The liability for tax of an employee is not affected by 
5.26 	the assessment or collection of tax under this paragraph. The employer is not entitled to 
5.27 	recover from the employee any tax determined under this paragraph.

5.28 	EFFECTIVE DATE. This section is effective for taxes required to be withheld 
5.29 	after 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, 
5.32 	deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for 
5.33 	any period, as reported to the Internal Revenue Service is changed or corrected by the 
5.34 	commissioner of Internal Revenue or other officer of the United States or other competent 
5.35 	authority, or where a renegotiation of a contract or subcontract with the United States 
6.1 	results in a change in income, items of tax preference, deductions, credits, or withholding 
6.2 	tax, or, in the case of estate tax, where there are adjustments to the taxable estate, the 
6.3 	taxpayer shall report the change or correction or renegotiation results in writing to the 
6.4 	commissioner. The report must be submitted within 180 days after the final determination 
6.5 	and must be in the form of either an amended Minnesota estate, withholding tax, corporate 
6.6 	franchise tax, or income tax return conceding the accuracy of the federal determination 
6.7 	or a letter detailing how the federal determination is incorrect or does not change the 
6.8 	Minnesota tax. An amended Minnesota income tax return must be accompanied by an 
6.9 	amended property tax refund return, if necessary. A taxpayer filing an amended federal 
6.10 	tax return must also file a copy of the amended return with the commissioner of revenue 
6.11 	within 180 days after filing the amended return. 

6.12 	EFFECTIVE 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, 
6.15 	and trusts, there shall be subtracted from federal taxable income: 
6.16 	(1) net interest income on obligations of any authority, commission, or 
6.17 	instrumentality of the United States to the extent includable in taxable income for federal 
6.18 	income 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 
6.20 	tax to Minnesota or to any other state, for any previous taxable year, whether the amount 
6.21 	is 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 
6.23 	section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten 
6.24 	to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and 
6.25 	transportation of each qualifying child in attending an elementary or secondary school 
6.26 	situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a 
6.27 	resident of this state may legally fulfill the state's compulsory attendance laws, which 
6.28 	is not operated for profit, and which adheres to the provisions of the Civil Rights Act 
6.29 	of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or 
6.30 	tuition 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 
6.32 	or leased for use in elementary and secondary schools in teaching only those subjects 
6.33 	legally and commonly taught in public elementary and secondary schools in this state. 
6.34 	Equipment expenses qualifying for deduction includes expenses as defined and limited in 
6.35 	section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional 
7.1 	books and materials used in the teaching of religious tenets, doctrines, or worship, the 
7.2 	purpose of which is to instill such tenets, doctrines, or worship, nor does it include books 
7.3 	or materials for, or transportation to, extracurricular activities including sporting events, 
7.4 	musical or dramatic events, speech activities, driver's education, or similar programs. No 
7.5 	deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or 
7.6 	the qualifying child's vehicle to provide such transportation for a qualifying child. For 
7.7 	purposes of the subtraction provided by this clause, "qualifying child" has the meaning 
7.8 	given 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 
7.11 	disposition 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) 
7.13 	of the Internal Revenue Code in determining federal taxable income by an individual 
7.14 	who does not itemize deductions for federal income tax purposes for the taxable year, an 
7.15 	amount equal to 50 percent of the excess of charitable contributions over $500 allowable 
7.16 	as a deduction for the taxable year under section 170(a) of the Internal Revenue Code and 
7.17 	under the provisions of Public Law 109-1; 
7.18 	(7) for taxable years beginning before January 1, 2008, the amount of the federal 
7.19 	small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code 
7.20 	which 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 
7.22 	qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover 
7.23 	of subnational foreign taxes for the taxable year, but not to exceed the total subnational 
7.24 	foreign 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 
7.26 	Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed 
7.27 	under section 904(c) of the Internal Revenue Code minus national level foreign taxes to 
7.28 	the 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 
7.30 	addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case 
7.31 	of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth 
7.32 	of the delayed depreciation. For purposes of this clause, "delayed depreciation" means 
7.33 	the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or 
7.34 	subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the 
7.35 	positive value of any net operating loss under section 172 of the Internal Revenue Code 
8.1 	generated for the tax year of the addition. The resulting delayed depreciation cannot be 
8.2 	less 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 
8.5 	paid to members of the Minnesota National Guard or other reserve components of the 
8.6 	United States military for active service performed in Minnesota, excluding compensation 
8.7 	for services performed under the Active Guard Reserve (AGR) program. For purposes of 
8.8 	this clause, "active service" means (i) state active service as defined in section 190.05, 
8.9 	subdivision 5a, clause (1); (ii) federally funded state active service as defined in section 
8.10 	190.05, subdivision 5b; or (iii) federal active service as defined in section 190.05, 
8.11 	subdivision 5c, but "active service" excludes service performed in accordance with section 
8.12 	190.08, subdivision 3; 
8.13 	(12) to the extent included in federal taxable income, the amount of compensation 
8.14 	paid to Minnesota residents who are members of the armed forces of the United States or 
8.15 	United Nations for active duty performed outside Minnesota under United States Code, 
8.16 	title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of 
8.17 	the United Nations; 
8.18 	(13) an amount, not to exceed $10,000, equal to qualified expenses related to a 
8.19 	qualified donor's donation, while living, of one or more of the qualified donor's organs 
8.20 	to another person for human organ transplantation. For purposes of this clause, "organ" 
8.21 	means 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 
8.23 	organ is made from the body of one person to the body of another person; "qualified 
8.24 	expenses" means unreimbursed expenses for both the individual and the qualified donor 
8.25 	for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses 
8.26 	may be subtracted under this clause only once; and "qualified donor" means the individual 
8.27 	or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An 
8.28 	individual may claim the subtraction in this clause for each instance of organ donation for 
8.29 	transplantation 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 
8.31 	addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a 
8.32 	shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 
8.33 	addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the 
8.34 	case of a shareholder of a corporation that is an S corporation, minus the positive value of 
8.35 	any net operating loss under section 172 of the Internal Revenue Code generated for the 
9.1 	tax year of the addition. If the net operating loss exceeds the addition for the tax year, a 
9.2 	subtraction is not allowed under this clause; 
9.3 	(15) to the extent included in federal taxable income, compensation paid to a service 
9.4 	member as defined in United States Code, title 10, section 101(a)(5), for military service 
9.5 	as 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 
9.7 	469.325; and
9.8 	(17) to the extent included in federal taxable income, the amount of national service 
9.9 	educational awards received from the National Service Trust under United States Code, 
9.10 	title 42, sections 12601 to 12604, for service in an approved Americorps National Service 
9.11 	program. 

9.12 	EFFECTIVE 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 
9.15 	imposed by this chapter equal to a percentage of earned income. To receive a credit, a 
9.16 	taxpayer 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 
9.18 	the first $4,620 of earned income. The credit is reduced by 1.9125 percent of earned 
9.19 	income or adjusted gross income, whichever is greater, in excess of $5,770, but in no 
9.20 	case 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, 
9.24 	whichever 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 
9.26 	percent 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 
9.28 	or adjusted gross income, whichever is greater, in excess of $17,890, but in no case is 
9.29 	the credit less than zero.
9.30 	(e) For a nonresident or part-year resident, the credit must be allocated based on the 
9.31 	percentage 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 
9.33 	not subject to tax under this chapter, including income excluded under section 290.01, 
9.34 	subdivision 19b, clause (10) or (16), the credit must be allocated based on the ratio of 
9.35 	federal adjusted gross income reduced by the earned income not subject to tax under 
10.1 	this chapter over federal adjusted gross income. For purposes of this paragraph, the 
10.2 	subtractions for military pay under section 290.01, subdivision 19b, clauses (11) and (12), 
10.3 	are not considered "earned income not subject to tax under this chapter."
10.4 	For the purposes of this paragraph, the exclusion of combat pay under section 112 
10.5 	of the Internal Revenue Code is not considered "earned income not subject to tax under 
10.6 	this chapter."
10.7 	(g) For tax years beginning after December 31, 2001, and before December 31, 
10.8 	2004, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in 
10.9 	paragraph (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, 
10.12 	2007, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in 
10.13 	paragraph (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 
10.16 	31, 2010, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in 
10.17 	paragraph (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 
10.19 	31, 2008, the commissioner shall annually adjust the $3,000 is adjusted annually for 
10.20 	inflation under subdivision 7. by the percentage determined pursuant to the provisions 
10.21 	of 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 
10.23 	determine the percent change from the 12 months ending on August 31, 2007, to the 12 
10.24 	months ending on August 31, 2008, and in each subsequent year, from the 12 months 
10.25 	ending on August 31, 2007, to the 12 months ending on August 31 of the year preceding 
10.26 	the taxable year. The earned income thresholds as adjusted for inflation must be rounded 
10.27 	to the nearest $10. If the amount ends in $5, the amount is rounded up to the nearest $10. 
10.28 	The determination of the commissioner under this subdivision is not a rule under the 
10.29 	Administrative Procedure Act.
10.30 	(j)(h) The commissioner shall construct tables showing the amount of the credit 
10.31 	at various income levels and make them available to taxpayers. The tables shall follow 
10.32 	the schedule contained in this subdivision, except that the commissioner may graduate 
10.33 	the transition between income brackets.

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

11.1 	Sec. 9. Minnesota Statutes 2008, section 290A.10, is amended to read:
11.2 	290A.10 PROOF OF TAXES PAID.
11.3 	Every claimant who files a claim for relief for property taxes payable shall include 
11.4 	with the claim a property tax statement or a reproduction thereof in a form deemed 
11.5 	satisfactory by the commissioner of revenue indicating that there are no delinquent 
11.6 	property taxes on the homestead. Indication on the property tax statement from the county 
11.7 	treasurer that there are no delinquent taxes on the homestead shall be sufficient proof. 
11.8 	Taxes included in a confession of judgment under section 277.23 or279.37 shall not 
11.9 	constitute delinquent taxes as long as the claimant is current on the payments required to 
11.10 	be made under section 277.23 or279.37.

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

11.12 	Sec. 10. Minnesota Statutes 2008, section 290A.14, is amended to read:
11.13 	290A.14 PROPERTY TAX STATEMENT.
11.14 	The county treasurer shall prepare and send a sufficient number of copies of the 
11.15 	property tax statement to the owner, and to the owner's escrow agent if the taxes are 
11.16 	paid via an escrow account, to enable the owner to comply with the filing requirements 
11.17 	of this chapter and to retain one copy as a record. The property tax statement, in a form 
11.18 	prescribed by the commissioner, shall indicate the manner in which the claimant may 
11.19 	claim relief from the state under both this chapter and chapter 290B, and the amount of the 
11.20 	tax for which the applicant may claim relief. The statement shall also indicate if there 
11.21 	are delinquent property taxes on the property in the preceding year. Taxes included in a 
11.22 	confession of judgment under section 277.23 or279.37 shall not constitute delinquent 
11.23 	taxes as long as the claimant is current on the payments required to be made under section
11.24 	277.23 or279.37.

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

11.26 	Sec. 11.  REPEALER.
 11.27 	Minnesota Rules, part 8009.3000, is repealed.

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

12.1 	ARTICLE 2
12.2 	SALES AND USE TAXES

12.3 	Section 1. Minnesota Statutes 2008, section 297A.70, subdivision 2, is amended to 
12.4 	read:
12.5 		Subd. 2.Sales to government. (a) All sales, except those listed in paragraph (b), 
12.6 	to the following governments and political subdivisions, or to the listed agencies or 
12.7 	instrumentalities 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 
12.10 	colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts 
12.11 	Education, and an instrumentality of a political subdivision that is accredited as an 
12.12 	optional/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 
12.14 	the state of tangible personal property and taxable services used at or by hospitals and 
12.15 	nursing homes;
12.16 	(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip 
12.17 	operations provided for in section 473.4051; 
12.18 	(5) other states or political subdivisions of other states, if the sale would be exempt 
12.19 	from taxation if it occurred in that state; and
12.20 	(6) sales to public libraries, public library systems, multicounty, multitype library 
12.21 	systems as defined in section 134.001, county law libraries under chapter 134A, state 
12.22 	agency libraries, the state library under section 480.09, and the Legislative Reference 
12.23 	Library. 
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 
12.26 	or a subcontractor as a part of a lump-sum contract or similar type of contract with a 
12.27 	guaranteed maximum price covering both labor and materials for use in the construction, 
12.28 	alteration, or repair of a building or facility;
12.29 	(2) construction materials purchased by tax exempt entities or their contractors to 
12.30 	be used in constructing buildings or facilities which will not be used principally by the 
12.31 	tax exempt entities;
12.32 	(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11, 
12.33 	except 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 
13.1 	section 297A.67, subdivision 2, except for lodging, prepared food, candy, and soft 
13.2 	drinks, and alcoholic beverages purchased directly by the United States or its agencies 
13.3 	or instrumentalities. 
13.4 	(c) As used in this subdivision, "school districts" means public school entities and 
13.5 	districts of every kind and nature organized under the laws of the state of Minnesota, and 
13.6 	any instrumentality of a school district, as defined in section 471.59. 

13.7 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
13.8 	June 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 
13.13 	operated exclusively for charitable, religious, or educational purposes if the item 
13.14 	purchased is used in the performance of charitable, religious, or educational functions; and
13.15 	(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 
13.17 	physically disabled; and
13.18 	(ii) is organized and operated exclusively for pleasure, recreation, and other 
13.19 	nonprofit purposes, not including housing, no part of the net earnings of which inures to 
13.20 	the benefit of any private shareholders.; and
13.21 	(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.
13.22 	For purposes of this subdivision, charitable purpose includes the maintenance of a 
13.23 	cemetery 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 
13.26 	or a subcontractor as a part of a lump-sum contract or similar type of contract with a 
13.27 	guaranteed maximum price covering both labor and materials for use in the construction, 
13.28 	alteration, or repair of a building or facility;
13.29 	(2) construction materials purchased by tax-exempt entities or their contractors to 
13.30 	be used in constructing buildings or facilities that will not be used principally by the 
13.31 	tax-exempt entities; and
13.32 	(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 
14.1 	section 297A.67, subdivision 2, except wine purchased by an established religious 
14.2 	organization for sacramental purposes; and 
14.3 	(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except 
14.4 	as provided in paragraph (c). 
14.5 	(c) This exemption applies to the leasing of a motor vehicle as defined in section 
14.6 	297B.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 
14.8 	passenger automobile, as defined in section 168.002, if the automobile is designed and 
14.9 	used for carrying more than nine persons including the driver; and 
14.10 	(2) intended to be used primarily to transport tangible personal property or 
14.11 	individuals, other than employees, to whom the organization provides service in 
14.12 	performing 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 
14.15 	purchased qualify for the exemption.

14.16 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
14.17 	June 30, 2009, except that the amendment to paragraph (a) is effective the day following 
14.18 	final 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 
14.21 	1, 2, and 3, or 477A.016, or any other law, the board of a county participating in a 
14.22 	joint powers agreement as specified in this section shall impose by resolution (1) a 
14.23 	transportation sales and use tax at a rate of one-quarter of one percent on retail sales and 
14.24 	uses taxable under this chapter, and (2) an excise tax of $20 per motor vehicle, as defined 
14.25 	in section 297B.01, subdivision 5, purchased or acquired from any person engaged in the 
14.26 	business of selling motor vehicles at retail, occurring within the jurisdiction of the taxing 
14.27 	authority. The taxes authorized are to fund transportation improvements as specified in 
14.28 	this section, including debt service on obligations issued to finance such improvements 
14.29 	pursuant to subdivision 7. 
14.30 	(b) The tax imposed under this section is not included in determining if the total tax 
14.31 	on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986, 
14.32 	chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article 
14.33 	12, section 87, or in determining a tax that may be imposed under any other limitations. 

14.34 	EFFECTIVE 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, 
15.3 	subdivisions 1, 2, 3, 5, and 13, or 477A.016, or any other law, the board of a county outside 
15.4 	the metropolitan transportation area, as defined under section 297A.992, subdivision 1, or 
15.5 	more than one county outside the metropolitan transportation area acting under a joint 
15.6 	powers agreement, may impose (1) a transportation sales tax at a rate of up to one-half of 
15.7 	one percent on retail sales and uses taxable under this chapter, and (2) an excise tax of $20 
15.8 	per motor vehicle, as defined in section 297B.01, subdivision 5, purchased or acquired 
15.9 	from any person engaged in the business of selling motor vehicles at retail, occurring 
15.10 	within the jurisdiction of the taxing authority. The taxes imposed under this section are 
15.11 	subject to approval by a majority of the voters in each of the counties affected at a general 
15.12 	election who vote on the question to impose the taxes. 

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

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

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

15.17 	ARTICLE 3
15.18 	SPECIAL TAXES

15.19 	Section 1. Minnesota Statutes 2008, section 287.04, is amended to read:
15.20 	287.04 EXEMPTIONS.
15.21 	The 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 
15.25 	for which mortgage registry tax has been paid.
15.26 	(d) A contract for the conveyance of any interest in real property, including a 
15.27 	contract for deed.
15.28 	(e) A mortgage secured by real property subject to the minerals production tax of 
15.29 	sections 298.24 to 298.28.
15.30 	(f) The principal amount of a mortgage loan made under a low and moderate 
15.31 	income or other affordable housing program, if the mortgagee is a federal, state, or local 
15.32 	government 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 
16.3 	used to acquire or improve real property classified under section 273.13, subdivision 23, 
16.4 	paragraph (a), or (b), clause (1), (2), or (3).
16.5 	(j) A mortgage on an armory building as set forth in section 193.147.

16.6 	EFFECTIVE 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 
16.8 	to read:
16.9 		Subd. 9.Modification of mortgage. If a mortgage, or a document modifying a 
16.10 	mortgage, contains more than one statement that purports to limit: the enforcement of 
16.11 	the mortgage to a certain dollar amount; the tax imposed on the mortgage under this 
16.12 	chapter; or the effect of a modifying document, including but not limited to the statements 
16.13 	authorized in subdivisions 1, 1a, and 8, then the tax must be imposed based on the 
16.14 	combined effect, if any, of all the statements.

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

16.16 	Sec. 3. Minnesota Statutes 2008, section 287.22, is amended to read:
16.17 	287.22 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 
16.20 	entitled to or does take possession of the real property, or any assignment or cancellation 
16.21 	of the contract; 
16.22 	(2) a mortgage or an amendment, assignment, extension, partial release, or 
16.23 	satisfaction 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 
16.28 	instrumentality 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 
16.32 	piece of real property; 
17.1 	(10) a deed or other instrument of conveyance issued pursuant to a permanent school 
17.2 	fund 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 
17.5 	mortgage or lien foreclosure sale issued under section 580.23 or other statute applicable to 
17.6 	redemption by an owner of real property; 
17.7 	(13) a deed, instrument, or writing which grants, creates, modifies, or terminates 
17.8 	an easement; 
17.9 	(14) a decree of marriage dissolution, as defined in section 287.01, subdivision 4, 
17.10 	or a deed or other instrument between the parties to the dissolution made pursuant to the 
17.11 	terms of the decree; and 
17.12 	(15) a transfer on death deed under section 507.071, and any affidavit or other 
17.13 	document to the extent it references a transfer on death deed. 

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

17.15 	Sec. 4. Minnesota Statutes 2008, section 287.25, is amended to read:
17.16 	287.25 PAYMENT OF TAX; STAMPS.
17.17 	Except for documents filed electronically, the county board shall determine the 
17.18 	method 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 
17.20 	stamp or stamps in the amount of the tax to the document or instrument with respect to 
17.21 	which the tax is paid, provided that the county board may permit the payment of the 
17.22 	tax without the affixing of the documentary stamps and in such cases shall direct the 
17.23 	treasurer to endorse a receipt for such tax upon the face of the document or instrument. 
17.24 	Documents submitted electronically must have the deed tax data affixed electronically and 
17.25 	the 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 
17.27 	section 287.08 relating to payment of mortgage registration tax, and the treasurer must 
17.28 	endorse a receipt for the tax on the face of the document or instrument. 

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

17.30 	Sec. 5. Minnesota Statutes 2008, section 295.56, is amended to read:
17.31 	295.56 TRANSFER OF ACCOUNTS RECEIVABLE.
17.32 	When a hospital or, surgical center,  health care provider, or wholesale drug 
17.33 	distributor transfers, assigns, or sells accounts receivable to another person who is subject 
18.1 	to tax under this chapter, liability for the tax on the accounts receivable is imposed on the 
18.2 	transferee, assignee, or buyer of the accounts receivable. No liability for these accounts 
18.3 	receivable is imposed on the transferor, assignor, or seller of the accounts receivable.

18.4 	EFFECTIVE 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 
18.7 	center, or health care provider cannot determine the actual cost or reimbursement of 
18.8 	legend drugs under the exemption provided in section 295.53, subdivision 1, paragraph 
18.9 	(a), clause (6) (5), the following method must be used: 
18.10 	A hospital, surgical center, or health care provider must determine the amount paid 
18.11 	for legend drugs used during the month or quarter and multiply that amount by a ratio, 
18.12 	the numerator of which is the total amount received for taxable patient services, and the 
18.13 	denominator of which is the total amount received for all patient services, including 
18.14 	amounts exempt under section 295.53, subdivision 1. The result represents the allowable 
18.15 	exemption for the monthly or quarterly cost of drugs. 

18.16 	EFFECTIVE 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, 
18.19 	corrections, assessments, and refunds with respect to taxes and fees under this chapter, 
18.20 	including interest, additions to taxes, and assessable penalties. Except as otherwise 
18.21 	provided in this section, the amount of taxes assessable must be assessed within 3-1/2 
18.22 	years after the date the return is filed. For purposes of this section, a tax return filed before 
18.23 	the 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 
18.25 	3-1/2 years from the date prescribed for filing the return, plus any extension of time 
18.26 	granted for filing the return, but only if filed within the extended time; or the claim must 
18.27 	be filed within one year from the date of an order assessing tax or fees, or from the date of 
18.28 	a return filed by the commissioner, upon payment in full of the tax, fees, penalties, and 
18.29 	interest shown on the order or return, whichever period expires later.

18.30 	EFFECTIVE 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 
19.2 	of pull-tabs and tipboards sold by a distributor. The rate of the tax is 1.7 percent of the 
19.3 	ideal gross of the pull-tab or tipboard deal. The sales tax imposed by chapter 297A on the 
19.4 	sale of the pull-tabs and tipboards by the distributor is imposed on the retail sales price 
19.5 	less the tax imposed by this subdivision. The retail sale of pull-tabs or tipboards by the 
19.6 	organization is exempt from taxes imposed by chapter 297A and is exempt from all local 
19.7 	taxes 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 
19.9 	and tipboards are delivered by the distributor to the customer or to a common or contract 
19.10 	carrier for delivery to the customer, or when received by the customer's authorized 
19.11 	representative at the distributor's place of business, regardless of the distributor's method 
19.12 	of accounting or the terms of the sale.
19.13 	The tax imposed by this subdivision is imposed on all sales of pull-tabs and 
19.14 	tipboards, except the following:
19.15 	(1) sales to the governing body of an Indian tribal organization for use on an Indian 
19.16 	reservation;
19.17 	(2) sales to distributors licensed under the laws of another state or of a province of 
19.18 	Canada, as long as all statutory and regulatory requirements are met in the other state or 
19.19 	province;
19.20 	(3) sales of promotional tickets as defined in section 349.12; and
19.21 	(4) pull-tabs and tipboards sold to an organization that sells pull-tabs and tipboards 
19.22 	under the exemption from licensing in section 349.166, subdivision 2. A distributor shall 
19.23 	require an organization conducting exempt gambling to show proof of its exempt status 
19.24 	before making a tax-exempt sale of pull-tabs or tipboards to the organization. A distributor 
19.25 	shall identify, on all reports submitted to the commissioner, all sales of pull-tabs and 
19.26 	tipboards 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 
19.28 	ending June 30 must remit all liabilities in the subsequent calendar year by electronic 
19.29 	means.
19.30 	(d) Any customer who purchases deals of pull-tabs or tipboards from a distributor 
19.31 	may file an annual claim for a refund or credit of taxes paid pursuant to this subdivision 
19.32 	for unsold pull-tab and tipboard tickets. The claim must be filed with the commissioner on 
19.33 	a form prescribed by the commissioner by March 20 of the year following the calendar 
19.34 	year for which the refund is claimed. The refund must be filed as part of the customer's 
19.35 	February monthly return. The refund or credit is equal to 1.7 percent of the face value 
19.36 	of the unsold pull-tab or tipboard tickets, provided that the refund or credit will be 1.75 
20.1 	percent of the face value of the unsold pull-tab or tipboard tickets for claims for a refund 
20.2 	or credit of taxes filed on the February 2001 monthly return. The refund claimed will be 
20.3 	applied as a credit against tax owing under this chapter on the February monthly return. If 
20.4 	the refund claimed exceeds the tax owing on the February monthly return, that amount 
20.5 	will be refunded. The amount refunded will bear interest pursuant to section 270C.405
20.6 	from 90 days after the claim is filed.

20.7 	EFFECTIVE DATE. This section is effective for payments due in calendar year 
20.8 	2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, 
20.9 	2009, and in fiscal years thereafter.

20.10 	Sec. 9. Minnesota Statutes 2008, section 297E.06, is amended by adding a subdivision 
20.11 	to read:
20.12 		Subd. 1a.Required signatures. The gambling manager and the chief executive 
20.13 	officer of the organization, or their respective designees, and the person who completed 
20.14 	the tax return must sign the tax return. The organization shall inform the commissioner of 
20.15 	revenue in writing of the identity of the designees as soon as practicable in the form and 
20.16 	manner prescribed by the commissioner.

20.17 	EFFECTIVE 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 
20.20 	amount of taxes assessable must be assessed within 3-1/2 years after the return is filed, 
20.21 	whether or not the return is filed on or after the date prescribed. A return must not be 
20.22 	treated as filed until it is in processible form. A return is in processible form if it is filed 
20.23 	on a permitted form and contains sufficient data to identify the taxpayer and permit the 
20.24 	mathematical verification of the tax liability shown on the return. For purposes of this 
20.25 	section, a tax return filed before the last day prescribed by law for filing is considered to 
20.26 	be filed on the last day.

20.27 	EFFECTIVE 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 
20.30 	liability of $120,000$10,000 or more during a fiscal year ending June 30 must remit all 
20.31 	liabilities in the subsequent calendar year by electronic means.

21.1 	EFFECTIVE DATE. This section is effective for payments due in calendar year 
21.2 	2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, 
21.3 	2009, 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 
21.6 	an excise tax liability of $120,000$10,000 or more during a fiscal year ending June 30 
21.7 	must remit all excise tax liabilities in the subsequent calendar year by electronic means.

21.8 	EFFECTIVE DATE. This section is effective for payments due in calendar year 
21.9 	2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, 
21.10 	2009, and in fiscal years thereafter.

21.11 	Sec. 13. Minnesota Statutes 2008, section 297I.30, is amended by adding a subdivision 
21.12 	to read:
21.13 		Subd. 9.Extensions for filing returns. When, in the commissioner's judgment, 
21.14 	good cause exists, the commissioner may extend the time for filing returns for not more 
21.15 	than six months.

21.16 	EFFECTIVE 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 
21.19 	due under this chapter during a calendar year is equal to or exceeds $120,000 $10,000, 
21.20 	or if the taxpayer is required to make payment of any other tax to the commissioner by 
21.21 	electronic means, then all tax and surcharge payments in the subsequent calendar year 
21.22 	must be paid by electronic means.

21.23 	EFFECTIVE DATE. This section is effective for payments due in calendar year 
21.24 	2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, 
21.25 	2009, 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 298.24
21.28 	which remain after the distributions and payments in subdivisions 2 to 10a, as certified 
21.29 	by the commissioner of revenue, and paragraphs (b), (c), and (d), and (e) have been 
21.30 	made, together with interest earned on all money distributed under this section prior to 
21.31 	distribution, shall be divided between the taconite environmental protection fund created 
22.1 	in section 298.223 and the Douglas J. Johnson economic protection trust fund created in 
22.2 	section 298.292 as follows: Two-thirds to the taconite environmental protection fund and 
22.3 	one-third to the Douglas J. Johnson economic protection trust fund. The proceeds shall be 
22.4 	placed in the respective special accounts.
22.5 	(b) There shall be distributed to each city, town, and county the amount that it 
22.6 	received under section 294.26 in calendar year 1977; provided, however, that the amount 
22.7 	distributed in 1981 to the unorganized territory number 2 of Lake County and the town 
22.8 	of Beaver Bay based on the between-terminal trackage of Erie Mining Company will be 
22.9 	distributed in 1982 and subsequent years to the unorganized territory number 2 of Lake 
22.10 	County and the towns of Beaver Bay and Stony River based on the miles of track of Erie 
22.11 	Mining Company in each taxing district.
22.12 	(c) There shall be distributed to the Iron Range Resources and Rehabilitation Board 
22.13 	the amounts it received in 1977 under section 298.22. The amount distributed under 
22.14 	this paragraph shall be expended within or for the benefit of the taconite assistance area 
22.15 	defined in section 273.1341.
22.16 	(d) There shall be distributed to each school district 62 percent of the amount that it 
22.17 	received 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 
22.19 	tax relief area as defined in section 273.134, paragraph (a), that received $119,259 of 
22.20 	homestead and agricultural credit aid and $182,014 in local government aid in 2001.

22.21 	EFFECTIVE 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 
22.24 	shall pay the fee due under this section for the previous month, using a form provided 
22.25 	by the commissioner of revenue.
22.26 	An operator having a fee of $120,000 $10,000 or more during a fiscal year ending 
22.27 	June 30 must pay all fees in the subsequent calendar year by electronic means.

22.28 	EFFECTIVE DATE. This section is effective for payments due in calendar year 
22.29 	2010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30, 
22.30 	2009, and in fiscal years thereafter.

22.31 	Sec. 17.  REPEALER.
 22.32 	Minnesota Statutes 2008, sections 287.26; 287.27, subdivision 1; and 298.28, 
22.33 	subdivisions 11a and 13, are repealed.

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

23.2 	ARTICLE 4
23.3 	PROPERTY TAXES AND AIDS

23.4 	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) 
23.6 	Beginning with assessment year 2006, The commissioner of revenue shall annually certify 
23.7 	the first tier limit for agricultural homestead property as. For assessment year 2010, the 
23.8 	limit 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 
23.10 	statewide average taxable market value of agricultural property per acre of deeded farm 
23.11 	land in the preceding assessment year to the statewide average taxable market value of 
23.12 	agricultural property per acre of deeded farm land for the second preceding assessment 
23.13 	year 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 
23.15 	2 2a property under section 273.13, subdivision 23, except for (1) timberland, (2) a 
23.16 	landing area or public access area of a privately owned public use airport, and (3) property 
23.17 	consisting of the house, garage, and immediately surrounding one acre of land of an 
23.18 	agricultural homestead.
23.19 	(c) The commissioner shall certify the limit by January 2 of each assessment year, 
23.20 	except that for assessment year 2006 the commissioner shall certify the limit by June 
23.21 	1, 2006.

23.22 	EFFECTIVE DATE. This section is effective for taxes payable in 2011 and 
23.23 	thereafter.

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 
23.26 	in subdivision 3 shall upon timely application by the owner, in the manner provided 
23.27 	in subdivision 8, be determined solely with reference to its appropriate agricultural 
23.28 	classification and value notwithstanding sections 272.03, subdivision 8, and 273.11. 
23.29 	Furthermore, the assessor shall not consider any added values resulting from 
23.30 	nonagricultural factors. In order to account for the presence of nonagricultural influences 
23.31 	that may affect the value of agricultural land, the commissioner of revenue shall develop a 
23.32 	fair and uniform method of determining agricultural values for each county in the state 
23.33 	that are consistent with this subdivision. The commissioner shall annually assign the 
24.1 	resulting values to each county, and these values shall be used as the basis for determining 
24.2 	the agricultural value for all properties in the county qualifying for tax deferment under 
24.3 	this section.
24.4 	(b) In the case of property qualifying for tax deferment only under subdivision 3a, 
24.5 	the value shall be based on the value in effect for assessment year 2008, multiplied by 
24.6 	the ratio of the total taxable market value of all property in the county for the current 
24.7 	assessment year divided by the total taxable market value of all property in the county for 
24.8 	assessment year 2008 assessor shall not consider the presence of commercial, industrial, 
24.9 	residential, or seasonal recreational land use influences in determining the value for ad 
24.10 	valorem tax purposes; provided that in no case shall the value exceed the value prescribed 
24.11 	by the commissioner of revenue for class 2a tillable property in that county.

24.12 	EFFECTIVE DATE. This section is effective for assessment year 2009 and 
24.13 	thereafter.

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 
24.16 	all 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, 
24.18 	subdivisions 22 and 23, or the property is classified as class 2e under section 273.13, 
24.19 	subdivision 23, and immediately before being classified as class 2e was classified as 
24.20 	class 1a or 1b;
24.21 	(2) the property is at least ten contiguous acres, when the application is filed under 
24.22 	subdivision 3;
24.23 	(3) the owner has filed a completed application for deferment as specified in 
24.24 	subdivision 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; and
24.26 	(5) a covenant on the land restricts its use as provided in subdivision 3, clause (4).

24.27 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
24.28 	thereafter.

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 
24.31 	classified for tax purposes by order of the commissioner of revenue under sections 273.33
24.32 	to 273.3711.

24.33 	EFFECTIVE 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 
25.3 	property. (a) When property is owned by a corporation or association organized under 
25.4 	chapter 308A or 308B, and each person who owns a share or shares in the corporation or 
25.5 	association is entitled to occupy a building on the property, or a unit within a building 
25.6 	on the property, the corporation or association may claim homestead treatment for each 
25.7 	dwelling, or for each unit in the case of a building containing several dwelling units, or for 
25.8 	the part of the value of the building occupied by a shareholder. Each building or unit must 
25.9 	be designated by legal description or number. The net tax capacity of each building or 
25.10 	unit that qualifies for assessment as a homestead under this subdivision must include not 
25.11 	more than one-half acre of land, if platted, nor more than 80 acres if unplatted. The net 
25.12 	tax capacity of the property is the sum of the net tax capacities of each of the respective 
25.13 	buildings or units comprising the property, including the net tax capacity of each unit's 
25.14 	or building's proportionate share of the land and any common buildings. To qualify for 
25.15 	the treatment provided by this subdivision, the corporation or association must be wholly 
25.16 	owned by persons having a right to occupy a building or unit owned by the corporation 
25.17 	or association. A charitable corporation organized under the laws of Minnesota and not 
25.18 	otherwise exempt thereunder with no outstanding stock qualifies for homestead treatment 
25.19 	with respect to member residents of the dwelling units who have purchased and hold 
25.20 	residential participation warrants entitling them to occupy the units.
25.21 	(b) To the extent provided in paragraph (a), a cooperative or corporation organized 
25.22 	under chapter 308A or 308B may obtain separate assessment and valuation, and separate 
25.23 	property tax statements for each residential homestead, residential nonhomestead, or for 
25.24 	each seasonal residential recreational building or unit not used for commercial purposes. 
25.25 	The appropriate class rates under section 273.13 shall be applicable as if each building or 
25.26 	unit were a separate tax parcel; provided, however, that the tax parcel which exists at the 
25.27 	time the cooperative or corporation makes application under this subdivision shall be a 
25.28 	single parcel for purposes of property taxes or the enforcement and collection thereof, 
25.29 	other than as provided in paragraph (a) or this paragraph.
25.30 	(c) A member of a corporation or association may initially obtain the separate 
25.31 	assessment 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 
25.34 	paragraph (a) or (b), the current owner must notify the assessor within 30 days. Failure to 
25.35 	notify 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 
26.1 	under paragraph (a) or (b)" means the difference in the net tax capacity of the building or 
26.2 	units which no longer qualify as computed under paragraph (a) or (b) and as computed 
26.3 	under the otherwise applicable law, times the local tax rate applicable to the building for 
26.4 	that taxes payable year. Upon discovery of a failure to notify, the assessor shall inform the 
26.5 	auditor of the difference in net tax capacity for the building or buildings in which units no 
26.6 	longer qualify, and the auditor shall calculate the benefits under paragraph (a) or (b). Such 
26.7 	amount, plus a penalty equal to 100 percent of that amount, shall then be demanded of the 
26.8 	building's owner. The property owner may appeal the county's determination by serving 
26.9 	copies of a petition for review with county officials as provided in section 278.01 and 
26.10 	filing a proof of service as provided in section 278.01 with the Minnesota Tax Court within 
26.11 	60 days of the date of the notice from the county. The appeal shall be governed by the Tax 
26.12 	Court procedures provided in chapter 271, for cases relating to the tax laws as defined in 
26.13 	section 271.01, subdivision 5; disregarding sections 273.125, subdivision 5, and 278.03, 
26.14 	but 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 
26.16 	county auditor shall certify the amount of the benefit and penalty to the succeeding year's 
26.17 	tax 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 
26.20 	park is owned by a corporation or association organized under chapter 308A or 308B, 
26.21 	and each person who owns a share or shares in the corporation or association is entitled 
26.22 	to occupy a lot within the park, the corporation or association may claim homestead 
26.23 	treatment for each lot occupied by a shareholder. Each lot must be designated by legal 
26.24 	description or number, and each lot is limited to not more than one-half acre of land for 
26.25 	each homestead. The manufactured home park shall be valued and assessed as if it were 
26.26 	homestead 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 
26.29 	taxes and any special assessments levied against the land and structure either directly, or 
26.30 	indirectly through dues to the corporation; and
26.31 	(3) the corporation or association organized under chapter 308A or 308B is wholly 
26.32 	owned by persons having a right to occupy a lot owned by the corporation or association.
26.33 	A charitable corporation, organized under the laws of Minnesota with no outstanding 
26.34 	stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt 
26.35 	status, qualifies for homestead treatment with respect to member residents of the 
27.1 	manufactured home park who hold residential participation warrants entitling them to 
27.2 	occupy 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 
27.5 	requirements under subdivision 1 must file a homestead application with the county 
27.6 	assessor to initially obtain homestead classification. 
27.7 	(b) The format and contents of a uniform homestead application shall be prescribed 
27.8 	by the commissioner of revenue. The application must clearly inform the taxpayer that 
27.9 	this application must be signed by all owners who occupy the property or by the qualifying 
27.10 	relative and returned to the county assessor in order for the property to receive homestead 
27.11 	treatment. 
27.12 	(c) Every property owner applying for homestead classification must furnish to the 
27.13 	county assessor the Social Security number of each occupant who is listed as an owner 
27.14 	of the property on the deed of record, the name and address of each owner who does not 
27.15 	occupy the property, and the name and Social Security number of each owner's spouse who 
27.16 	occupies the property. The application must be signed by each owner who occupies the 
27.17 	property and by each owner's spouse who occupies the property, or, in the case of property 
27.18 	that 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 
27.20 	claim another property as a homestead unless the property owner and the property owner's 
27.21 	spouse file with the assessor an affidavit or other proof required by the assessor stating that 
27.22 	the property qualifies as a homestead under subdivision 1, paragraph (e). 
27.23 	Owners or spouses occupying residences owned by their spouses and previously 
27.24 	occupied with the other spouse, either of whom fail to include the other spouse's name 
27.25 	and Social Security number on the homestead application or provide the affidavits or 
27.26 	other proof requested, will be deemed to have elected to receive only partial homestead 
27.27 	treatment of their residence. The remainder of the residence will be classified as 
27.28 	nonhomestead residential. When an owner or spouse's name and Social Security number 
27.29 	appear on homestead applications for two separate residences and only one application is 
27.30 	signed, the owner or spouse will be deemed to have elected to homestead the residence for 
27.31 	which the application was signed. 
27.32 	The Social Security numbers, state or federal tax returns or tax return information, 
27.33 	including the federal income tax schedule F required by this section, or affidavits or other 
27.34 	proofs of the property owners and spouses submitted under this or another section to 
27.35 	support a claim for a property tax homestead classification are private data on individuals 
28.1 	as defined by section 13.02, subdivision 12, but, notwithstanding that section, the private 
28.2 	data may be disclosed to the commissioner of revenue, or, for purposes of proceeding 
28.3 	under the Revenue Recapture Act to recover personal property taxes owing, to the county 
28.4 	treasurer. 
28.5 	(d) If residential real estate is occupied and used for purposes of a homestead by 
28.6 	a 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 
28.8 	must be filed with the assessor. The application must be signed by each relative of an 
28.9 	owner who occupies the property and by each relative's spouse who also occupies the 
28.10 	property. The Social Security number of each relative and spouse of a relative occupying 
28.11 	the property shall be required on the homestead application filed under this subdivision. 
28.12 	If a different relative of the owner subsequently occupies the property, the owner of the 
28.13 	property must notify the assessor within 30 days of the change in occupancy. The Social 
28.14 	Security number of a relative or relative's spouse occupying the property is private data 
28.15 	on individuals as defined by section 13.02, subdivision 12, but may be disclosed to the 
28.16 	commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture 
28.17 	Act to recover personal property taxes owing, to the county treasurer.
28.18 	(e) The homestead application shall also notify the property owners that the 
28.19 	application filed under this section will not be mailed annually and that if the property 
28.20 	is granted homestead status for any assessment year, that same property shall remain 
28.21 	classified as homestead until the property is sold or transferred to another person, or 
28.22 	the owners, the spouse of the owner, or the relatives no longer use the property as their 
28.23 	homestead. Upon the sale or transfer of the homestead property, a certificate of value must 
28.24 	be timely filed with the county auditor as provided under section 272.115. Failure to 
28.25 	notify the assessor within 30 days that the property has been sold, transferred, or that the 
28.26 	owner, the spouse of the owner, or the relative is no longer occupying the property as a 
28.27 	homestead, shall result in the penalty provided under this subdivision and the property 
28.28 	will lose its current homestead status.
28.29 	(f) If the homestead application is not returned within 30 days, the county will send a 
28.30 	second application to the present owners of record. The notice of proposed property taxes 
28.31 	prepared under section 275.065, subdivision 3, shall reflect the property's classification. If 
28.32 	a homestead application has not been filed with the county by December 15, the assessor 
28.33 	shall classify the property as nonhomestead for the current assessment year for taxes 
28.34 	payable in the following year, provided that the owner may be entitled to receive the 
28.35 	homestead classification by proper application under section 375.192.
29.1 	(g) At the request of the commissioner, each county must give the commissioner a 
29.2 	list that includes the name and Social Security number of each occupant of homestead 
29.3 	property who is the property owner, property owner's spouse, qualifying relative of a 
29.4 	property owner, or a spouse of a qualifying relative. The commissioner shall use the 
29.5 	information provided on the lists as appropriate under the law, including for the detection 
29.6 	of 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 
29.8 	homestead, the commissioner shall notify the appropriate counties. Within 90 days of 
29.9 	the notification, the county assessor shall investigate to determine if the homestead 
29.10 	classification was properly claimed. If the property owner does not qualify, the county 
29.11 	assessor shall notify the county auditor who will determine the amount of homestead 
29.12 	benefits that had been improperly allowed. For the purpose of this section, "homestead 
29.13 	benefits" means the tax reduction resulting from the classification as a homestead under 
29.14 	section 273.13, the taconite homestead credit under section 273.135, the residential 
29.15 	homestead and agricultural homestead credits under section 273.1384, and the 
29.16 	supplemental homestead credit under section 273.1391.
29.17 	The county auditor shall send a notice to the person who owned the affected property 
29.18 	at the time the homestead application related to the improper homestead was filed, 
29.19 	demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent 
29.20 	of the homestead benefits. The person notified may appeal the county's determination 
29.21 	by serving copies of a petition for review with county officials as provided in section 
29.22 	278.01 and filing proof of service as provided in section 278.01 with the Minnesota Tax 
29.23 	Court within 60 days of the date of the notice from the county. Procedurally, the appeal 
29.24 	is governed by the provisions in chapter 271 which apply to the appeal of a property tax 
29.25 	assessment or levy, but without requiring any prepayment of the amount in controversy. If 
29.26 	the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal 
29.27 	has been filed, the county auditor shall certify the amount of taxes and penalty to the county 
29.28 	treasurer. The county treasurer will add interest to the unpaid homestead benefits and 
29.29 	penalty amounts at the rate provided in section 279.03 for real property taxes becoming 
29.30 	delinquent in the calendar year during which the amount remains unpaid. Interest may be 
29.31 	assessed 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 
29.33 	total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes 
29.34 	otherwise payable on the property by including the amounts on the property tax statements 
29.35 	under section 276.04, subdivision 3. The amounts added under this paragraph to the ad 
29.36 	valorem taxes shall include interest accrued through December 31 of the year preceding 
30.1 	the taxes payable year for which the amounts are first added. These amounts, when added 
30.2 	to the property tax statement, become subject to all the laws for the enforcement of real or 
30.3 	personal 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 
30.5 	collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of 
30.6 	the powers granted in sections 277.20 and 277.21 without exclusion, to enforce payment 
30.7 	of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent 
30.8 	tax obligations of the person who owned the property at the time the application related 
30.9 	to the improperly allowed homestead was filed. The treasurer may relieve a prior owner 
30.10 	of personal liability for the homestead benefits, penalty, interest, and costs, and instead 
30.11 	extend those amounts on the tax lists against the property as provided in this paragraph 
30.12 	to the extent that the current owner agrees in writing. On all demands, billings, property 
30.13 	tax statements, and related correspondence, the county must list and state separately the 
30.14 	amounts of homestead benefits, penalty, interest and costs being demanded, billed or 
30.15 	assessed.
30.16 	(i) Any amount of homestead benefits recovered by the county from the property 
30.17 	owner shall be distributed to the county, city or town, and school district where the 
30.18 	property is located in the same proportion that each taxing district's levy was to the total 
30.19 	of the three taxing districts' levy for the current year. Any amount recovered attributable 
30.20 	to taconite homestead credit shall be transmitted to the St. Louis County auditor to be 
30.21 	deposited in the taconite property tax relief account. Any amount recovered that is 
30.22 	attributable to supplemental homestead credit is to be transmitted to the commissioner of 
30.23 	revenue for deposit in the general fund of the state treasury. The total amount of penalty 
30.24 	collected 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 
30.26 	assessors cannot determine which property should be classified as homestead, the county 
30.27 	assessors will refer the information to the commissioner. The commissioner shall make 
30.28 	the determination and notify the counties within 60 days.
30.29 	(k) In addition to lists of homestead properties, the commissioner may ask the 
30.30 	counties to furnish lists of all properties and the record owners. The Social Security 
30.31 	numbers and federal identification numbers that are maintained by a county or city 
30.32 	assessor for property tax administration purposes, and that may appear on the lists retain 
30.33 	their classification as private or nonpublic data; but may be viewed, accessed, and used by 
30.34 	the county auditor or treasurer of the same county for the limited purpose of assisting the 
30.35 	commissioner 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 
31.2 	commissioner with the following data for each parcel of homestead property by electronic 
31.3 	means as defined in section 289A.02, subdivision 8: 
31.4 	(i) the property identification number assigned to the parcel for purposes of taxes 
31.5 	payable in the current year; 
31.6 	(ii) the name and Social Security number of each occupant of homestead property 
31.7 	who is the property owner, property owner's spouse, qualifying relative of a property 
31.8 	owner, or spouse of a qualifying relative; 
31.9 	(iii) the classification of the property under section 273.13 for taxes payable in the 
31.10 	current year and in the prior year; 
31.11 	(iv) an indication of whether the property was classified as a homestead for taxes 
31.12 	payable in the current year because of occupancy by a relative of the owner or by a 
31.13 	spouse of a relative; 
31.14 	(v) the property taxes payable as defined in section 290A.03, subdivision 13, for the 
31.15 	current year and the prior year; 
31.16 	(vi) the market value of improvements to the property first assessed for tax purposes 
31.17 	for taxes payable in the current year; 
31.18 	(vii) the assessor's estimated market value assigned to the property for taxes payable 
31.19 	in the current year and the prior year; 
31.20 	(viii) the taxable market value assigned to the property for taxes payable in the 
31.21 	current 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 
31.26 	under the law, including for the detection of improper claims by owners, or relatives 
31.27 	of owners, under chapter 290A. 

31.28 	EFFECTIVE DATE. This section is effective for applications received after June 
31.29 	30, 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 
31.32 	under a trust is eligible for classification as homestead property if: the property satisfies 
31.33 	the 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 
31.35 	uses the property as a homestead;.
32.1 	(2) (b) A relative or surviving relative of the grantor who meets the requirements 
32.2 	of subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1, 
32.3 	paragraph (d), in the case of agricultural property, occupies and uses the property as 
32.4 	a homestead;.
32.5 	(3) (c) A family farm corporation, joint farm venture, limited liability company, or 
32.6 	partnership operating a family farm in which the grantor or the grantor's surviving spouse 
32.7 	is a shareholder, member, or partner rents the property,; and, either (1) a shareholder, 
32.8 	member, or partner of the corporation, joint farm venture, limited liability company, or 
32.9 	partnership occupies and uses the property as a homestead,; or is actively farming, (2) the 
32.10 	property is at least 40 acres, including undivided government lots and correctional 40's, and 
32.11 	a shareholder, member, or partner of the tenant-entity is actively farming the property on 
32.12 	behalf 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 
32.14 	payable in 2000 on the basis of an unqualified legal right under the terms of the trust 
32.15 	agreement to occupy the property as that person's homestead and who continues to use the 
32.16 	property as a homestead; or, a person who received the homestead classification for taxes 
32.17 	payable in 2005 under clause (3)paragraph (c) who does not qualify under clause (3)
32.18 	paragraph (c)  for taxes payable in 2006 or thereafter but who continues to qualify under 
32.19 	clause (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 
32.21 	establishing a testamentary, inter Vivos, revocable or irrevocable trust by written 
32.22 	instrument or through the exercise of a power of appointment.

32.23 	EFFECTIVE 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 
32.26 	land that is homesteaded, along with any class 2b rural vacant land that is contiguous to 
32.27 	the class 2a land under the same ownership. The market value of the house and garage 
32.28 	and immediately surrounding one acre of land has the same class rates as class 1a or 1b 
32.29 	property under subdivision 22. The value of the remaining land including improvements 
32.30 	up to the first tier valuation limit of agricultural homestead property has a net class rate 
32.31 	of 0.5 percent of market value. The remaining property over the first tier has a class rate 
32.32 	of one percent of market value. For purposes of this subdivision, the "first tier valuation 
32.33 	limit of agricultural homestead property" and "first tier" means the limit certified under 
32.34 	section 273.11, subdivision 23. 
33.1 	(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that 
33.2 	are agricultural land and buildings. Class 2a property has a net class rate of one percent of 
33.3 	market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a 
33.4 	property may contain property that would otherwise be classified as 2b, including but not 
33.5 	limited to sloughs, wooded wind shelters, acreage abutting ditches, and other similar land 
33.6 	impractical 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 
33.8 	for 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, 
33.10 	that are unplatted real estate, rural in character and not used for agricultural purposes, 
33.11 	including land used for growing trees for timber, lumber, and wood and wood products, 
33.12 	that is not improved with a structure. The presence of a minor, ancillary nonresidential 
33.13 	structure as defined by the commissioner of revenue does not disqualify the property from 
33.14 	classification under this paragraph. Any parcel of 20 acres or more improved with a 
33.15 	structure that is not a minor, ancillary nonresidential structure must be split-classified, and 
33.16 	ten acres must be assigned to the split parcel containing the structure. Class 2b property 
33.17 	has a net class rate of one percent of market value unless it is part of an agricultural 
33.18 	homestead 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 
33.20 	acres statewide per taxpayer that is being managed under a forest management plan that 
33.21 	meets the requirements of chapter 290C, but is not enrolled in the sustainable forest 
33.22 	resource management incentive program. It has a class rate of .65 percent, provided 
33.23 	that the owner of the property must apply to the assessor to receive the reduced class in 
33.24 	order for the property to initially qualify for the reduced rate and provide the information 
33.25 	required by the assessor to verify that the property qualifies for the reduced rate. If the 
33.26 	assessor receives the application and information before May 1 in an assessment year, 
33.27 	the property qualifies beginning with that assessment year. If the assessor receives the 
33.28 	application and information after April 30 in an assessment year, the property qualifies 
33.29 	beginning with the next assessment year. The commissioner of natural resources must 
33.30 	concur that the land is qualified. The commissioner of natural resources shall annually 
33.31 	provide county assessors verification information on a timely basis. The presence of a 
33.32 	minor, ancillary nonresidential structure as defined by the commissioner of revenue does 
33.33 	not disqualify the property from classification under this paragraph.
33.34 	(e) Agricultural land as used in this section means contiguous acreage of ten 
33.35 	acres or more, used during the preceding year for agricultural purposes. "Agricultural 
33.36 	purposes" as used in this section means the raising, cultivation, drying, or storage of 
34.1 	agricultural products for sale, or the storage of machinery or equipment used in support 
34.2 	of agricultural production by the same farm entity. For a property to be classified as 
34.3 	agricultural based only on the drying or storage of agricultural products, the products 
34.4 	being dried or stored must have been produced by the same farm entity as the entity 
34.5 	operating the drying or storage facility. "Agricultural purposes" also includes enrollment 
34.6 	in the Reinvest in Minnesota program under sections 103F.501 to 103F.535 or the federal 
34.7 	Conservation Reserve Program as contained in Public Law 99-198 or a similar state 
34.8 	or federal conservation program if the property was classified as agricultural (i) under 
34.9 	this subdivision for the assessment year 2002 or (ii) in the year prior to its enrollment. 
34.10 	Agricultural classification shall not be based upon the market value of any residential 
34.11 	structures 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 
34.13 	raising or cultivating agricultural products, shall be considered as agricultural land. To 
34.14 	qualify under this paragraph, property that includes a residential structure must be used 
34.15 	intensively for one of the following purposes:
34.16 	(i) for drying or storage of grain or storage of machinery or equipment used to 
34.17 	support agricultural activities on other parcels of property operated by the same farming 
34.18 	entity;
34.19 	(ii) as a nursery, provided that only those acres used to produce nursery stock are 
34.20 	considered agricultural land;
34.21 	(iii) for livestock or poultry confinement, provided that land that is used only for 
34.22 	pasturing and grazing does not qualify; or
34.23 	(iv) for market farming; for purposes of this paragraph, "market farming" means the 
34.24 	cultivation of one or more fruits or vegetables or production of animal or other agricultural 
34.25 	products for sale to local markets by the farmer or an organization with which the farmer 
34.26 	is affiliated. 
34.27 	(g) Land shall be classified as agricultural even if all or a portion of the agricultural 
34.28 	use 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 
34.30 	section 273.111. 
34.31 	(h) The property classification under this section supersedes, for property tax 
34.32 	purposes only, any locally administered agricultural policies or land use restrictions that 
34.33 	define minimum or maximum farm acreage. 
34.34 	(i) The term "agricultural products" as used in this subdivision includes production 
34.35 	for sale of: 
35.1 	(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 
35.2 	animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, 
35.3 	bees, and apiary products by the owner; 
35.4 	(2) fish bred for sale and consumption if the fish breeding occurs on land zoned 
35.5 	for agricultural use; 
35.6 	(3) the commercial boarding of horses if the boarding is done in conjunction with 
35.7 	raising or cultivating agricultural products as defined in clause (1); 
35.8 	(4) property which is owned and operated by nonprofit organizations used for 
35.9 	equestrian activities, excluding racing; 
35.10 	(5) game birds and waterfowl bred and raised for use on a shooting preserve licensed 
35.11 	under 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 
35.14 	sold for timber, lumber, wood, or wood products; and 
35.15 	(8) maple syrup taken from trees grown by a person licensed by the Minnesota 
35.16 	Department 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 
35.18 	purposes, 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), 
35.23 	and (3), 
35.24 	the assessor shall classify the part of the parcel used for agricultural purposes as class 
35.25 	1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its 
35.26 	use. The grading, sorting, and packaging of raw agricultural products for first sale is 
35.27 	considered an agricultural purpose. A greenhouse or other building where horticultural 
35.28 	or nursery products are grown that is also used for the conduct of retail sales must be 
35.29 	classified as agricultural if it is primarily used for the growing of horticultural or nursery 
35.30 	products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of 
35.31 	those products. Use of a greenhouse or building only for the display of already grown 
35.32 	horticultural 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 
35.34 	of the homestead dwelling and the one acre of land on which that dwelling is located. If 
35.35 	any farm buildings or structures are located on this homesteaded acre of land, their market 
35.36 	value 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 
36.2 	of a privately owned public use airport. It has a class rate of one percent of market value. 
36.3 	To qualify for classification under this paragraph, a privately owned public use airport 
36.4 	must 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, 
36.6 	regularly maintained, and made available to the public for use by aircraft and includes 
36.7 	runways, taxiways, aprons, and sites upon which are situated landing or navigational aids. 
36.8 	A landing area also includes land underlying both the primary surface and the approach 
36.9 	surfaces that comply with all of the following: 
36.10 	(i) the land is properly cleared and regularly maintained for the primary purposes of 
36.11 	the landing, taking off, and taxiing of aircraft; but that portion of the land that contains 
36.12 	facilities 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. 
36.15 	The land contained in a landing area under this paragraph must be described and certified 
36.16 	by the commissioner of transportation. The certification is effective until it is modified, 
36.17 	or until the airport or landing area no longer meets the requirements of this paragraph. 
36.18 	For purposes of this paragraph, "public access area" means property used as an aircraft 
36.19 	parking ramp, apron, or storage hangar, or an arrival and departure building in connection 
36.20 	with the airport. 
36.21 	(l) (m) Class 2e consists of land with a commercial aggregate deposit that is not 
36.22 	actively being mined and is not otherwise classified as class 2a or 2b. It has a class rate of 
36.23 	one percent of market value. To qualify for classification under this paragraph, the property 
36.24 	must be at least ten contiguous acres in size and the owner of the property must record with 
36.25 	the 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 
36.28 	actively being mined but is present on the entire parcel enrolled;
36.29 	(3) documentation that the conditional use under the county or local zoning 
36.30 	ordinance of this property is for mining; and
36.31 	(4) documentation that a permit has been issued by the local unit of government 
36.32 	or the mining activity is allowed under local ordinance. The disclosure must include a 
36.33 	statement from a registered professional geologist, engineer, or soil scientist delineating 
36.34 	the deposit and certifying that it is a commercial aggregate deposit.
36.35 	For purposes of this section and section 273.1115, "commercial aggregate deposit" 
36.36 	means a deposit that will yield crushed stone or sand and gravel that is suitable for use 
37.1 	as a construction aggregate; and "actively mined" means the removal of top soil and 
37.2 	overburden 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 
37.4 	begins to be actively mined, the owner must file a supplemental affidavit within 60 days 
37.5 	from the day any aggregate is removed stating the number of acres of the property that is 
37.6 	actively being mined. The acres actively being mined must be (1) valued and classified 
37.7 	under subdivision 24 in the next subsequent assessment year, and (2) removed from the 
37.8 	aggregate resource preservation property tax program under section 273.1115, if the 
37.9 	land was enrolled in that program. Copies of the original affidavit and all supplemental 
37.10 	affidavits must be filed with the county assessor, the local zoning administrator, and the 
37.11 	Department of Natural Resources, Division of Land and Minerals. A supplemental 
37.12 	affidavit must be filed each time a subsequent portion of the property is actively mined, 
37.13 	provided that the minimum acreage change is five acres, even if the actual mining activity 
37.14 	constitutes less than five acres.
37.15 	(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are 
37.16 	not rules, are exempt from the rulemaking provisions of chapter 14, and the provisions 
37.17 	in section 14.386 concerning exempt rules do not apply.

37.18 	EFFECTIVE 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 
37.21 	units and used or held for use by the owner or by the tenants or lessees of the owner 
37.22 	as a residence for rental periods of 30 days or more, excluding property qualifying for 
37.23 	class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other 
37.24 	than hospitals exempt under section 272.02, and contiguous property used for hospital 
37.25 	purposes, without regard to whether the property has been platted or subdivided. The 
37.26 	market 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 
37.29 	4bb, 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 
37.32 	farm 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 
37.34 	33. 
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 
38.3 	residential recreational property; and 
38.4 	(2) a single family dwelling, garage, and surrounding one acre of property on a 
38.5 	nonhomestead 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 
38.8 	any time during which it has been owned by the current owner or spouse of the current 
38.9 	owner 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 
38.13 	occupancy for recreation purposes, including real and personal property devoted to 
38.14 	temporary and seasonal residential occupancy for recreation purposes and not devoted to 
38.15 	commercial purposes for more than 250 days in the year preceding the year of assessment. 
38.16 	For purposes of this clause, property is devoted to a commercial purpose on a specific 
38.17 	day if any portion of the property is used for residential occupancy, and a fee is charged 
38.18 	for residential occupancy. Class 4c property under this clause must contain three or 
38.19 	more rental units. A "rental unit" is defined as a cabin, condominium, townhouse, 
38.20 	sleeping room, or individual camping site equipped with water and electrical hookups 
38.21 	for recreational vehicles. Class 4c property under this clause must provide recreational 
38.22 	activities such as renting ice fishing houses, boats and motors, snowmobiles, downhill or 
38.23 	cross-country ski equipment; provide marina services, launch services, or guide services; 
38.24 	or sell bait and fishing tackle. A camping pad offered for rent by a property that otherwise 
38.25 	qualifies for class 4c under this clause is also class 4c under this clause regardless of the 
38.26 	term of the rental agreement, as long as the use of the camping pad does not exceed 250 
38.27 	days. In order for a property to be classified as class 4c, seasonal residential recreational 
38.28 	for commercial purposes under this clause, at least 40 percent of the annual gross lodging 
38.29 	receipts related to the property must be from business conducted during 90 consecutive 
38.30 	days and either (i) at least 60 percent of all paid bookings by lodging guests during the 
38.31 	year must be for periods of at least two consecutive nights; or (ii) at least 20 percent 
38.32 	of the annual gross receipts must be from charges for rental of fish houses, boats and 
38.33 	motors, snowmobiles, downhill or cross-country ski equipment, or charges for marina 
38.34 	services, launch services, and guide services, or the sale of bait and fishing tackle. For 
38.35 	purposes of this determination, a paid booking of five or more nights shall be counted as 
38.36 	two bookings. Class 4c property classified under this clause also includes commercial 
39.1 	use real property used exclusively for recreational purposes in conjunction with other 
39.2 	class 4c property classified under this clause and devoted to temporary and seasonal 
39.3 	residential occupancy for recreational purposes, up to a total of two acres, provided the 
39.4 	property is not devoted to commercial recreational use for more than 250 days in the year 
39.5 	preceding the year of assessment and is located within two miles of the class 4c property 
39.6 	with which it is used. Owners of real and personal property devoted to temporary and 
39.7 	seasonal residential occupancy for recreation purposes and all or a portion of which was 
39.8 	devoted to commercial purposes for not more than 250 days in the year preceding the 
39.9 	year of assessment desiring classification as class 4c, must submit a declaration to the 
39.10 	assessor designating the cabins or units occupied for 250 days or less in the year preceding 
39.11 	the year of assessment by January 15 of the assessment year. Those cabins or units and 
39.12 	a proportionate share of the land on which they are located must be designated class 
39.13 	4c under this clause  as otherwise provided. The remainder of the cabins or units and a 
39.14 	proportionate share of the land on which they are located will be designated as class 3a. 
39.15 	The owner of property desiring designation as class 4c property under this clause must 
39.16 	provide guest registers or other records demonstrating that the units for which class 4c 
39.17 	designation is sought were not occupied for more than 250 days in the year preceding the 
39.18 	assessment 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 
39.20 	operated on a commercial basis not directly related to temporary and seasonal residential 
39.21 	occupancy 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 
39.24 	dues, but a membership fee may not be required in order to use the property for golfing, 
39.25 	and its green fees for golfing must be comparable to green fees typically charged by 
39.26 	municipal 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 
39.29 	with 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 
39.31 	nonprofit community service oriented organization and that is not used for residential 
39.32 	purposes on either a temporary or permanent basis, qualifies for class 4c provided that 
39.33 	it meets either of the following: 
39.34 	(i) the property is not used for a revenue-producing activity for more than six days 
39.35 	in the calendar year preceding the year of assessment; or 
40.1 	(ii) the organization makes annual charitable contributions and donations at least 
40.2 	equal to the property's previous year's property taxes and the property is allowed to be 
40.3 	used for public and community meetings or events for no charge, as appropriate to the 
40.4 	size of the facility. 
40.5 	For purposes of this clause, 
40.6 	(A) "charitable contributions and donations" has the same meaning as lawful 
40.7 	gambling purposes under section 349.12, subdivision 25, excluding those purposes 
40.8 	relating 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, 
40.11 	society, association, foundation, or institution organized and operated exclusively for 
40.12 	charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 
40.13 	federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 
40.14 	Revenue Code; and 
40.15 	(D) "revenue-producing activities" shall include but not be limited to property or that 
40.16 	portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 
40.17 	liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 
40.18 	alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 
40.19 	insurance business, or office or other space leased or rented to a lessee who conducts a 
40.20 	for-profit enterprise on the premises. 
40.21 	Any portion of the property not qualifying under either item (i) which is used for 
40.22 	revenue-producing activities for more than six days in the calendar year preceding the 
40.23 	year of assessment shall be assessed as or (ii) is class 3a. The use of the property for social 
40.24 	events open exclusively to members and their guests for periods of less than 24 hours, 
40.25 	when an admission is not charged nor any revenues are received by the organization shall 
40.26 	not be considered a revenue-producing activity. 
40.27 	The organization shall maintain records of its charitable contributions and donations 
40.28 	and of public meetings and events held on the property and make them available upon 
40.29 	request any time to the assessor to ensure eligibility. An organization meeting the 
40.30 	requirement under item (ii) must file an application by May 1 with the assessor for 
40.31 	eligibility for the current year's assessment. The commissioner shall prescribe a uniform 
40.32 	application form and instructions; 
40.33 	(4) postsecondary student housing of not more than one acre of land that is owned by 
40.34 	a nonprofit corporation organized under chapter 317A and is used exclusively by a student 
40.35 	cooperative, sorority, or fraternity for on-campus housing or housing located within two 
40.36 	miles 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, 
41.3 	social, recreational, and related uses, is owned and operated by a not-for-profit corporation, 
41.4 	and 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 
41.6 	under 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 
41.8 	Airports Commission, or group thereof; and 
41.9 	(ii) the land lease, or any ordinance or signed agreement restricting the use of the 
41.10 	leased 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 
41.12 	be filed by the new owner with the assessor of the county where the property is located 
41.13 	within 60 days of the sale; 
41.14 	(8) a privately owned noncommercial aircraft storage hangar not exempt under 
41.15 	section 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 
41.18 	agreement restricting the use of the premises, prohibiting commercial use or activity 
41.19 	performed at the hangar; and 
41.20 	(9) residential real estate, a portion of which is used by the owner for homestead 
41.21 	purposes, 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 
41.23 	of 14 or fewer days; 
41.24 	(ii) meals are provided to persons who rent rooms, the cost of which is incorporated 
41.25 	in the basic room rate; 
41.26 	(iii) meals are not provided to the general public except for special events on fewer 
41.27 	than seven days in the calendar year preceding the year of the assessment; and 
41.28 	(iv) the owner is the operator of the property.
41.29 	The market value subject to the 4c classification under this clause is limited to five rental 
41.30 	units. Any rental units on the property in excess of five, must be valued and assessed as 
41.31 	class 3a. The portion of the property used for purposes of a homestead by the owner must 
41.32 	be classified as class 1a property under subdivision 22; and
41.33 	(10) real property up to a maximum of three acres and operated as a restaurant 
41.34 	as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake 
41.35 	as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B) 
41.36 	is either devoted to commercial purposes for not more than 250 consecutive days, or 
42.1 	receives at least 60 percent of its annual gross receipts from business conducted during 
42.2 	four consecutive months. Gross receipts from the sale of alcoholic beverages must be 
42.3 	included in determining the property's qualification under subitem (B). The property's 
42.4 	primary business must be as a restaurant and not as a bar. Gross receipts from gift shop 
42.5 	sales located on the premises must be excluded. Owners of real property desiring 4c 
42.6 	classification under this clause must submit an annual declaration to the assessor by 
42.7 	February 1 of the current assessment year, based on the property's relevant information for 
42.8 	the preceding assessment year. 
42.9 	Class 4c property has a class rate of 1.5 percent of market value, except that (i) each 
42.10 	parcel of seasonal residential recreational property not used for commercial purposes has 
42.11 	the same class rates as class 4bb property, (ii) manufactured home parks assessed under 
42.12 	clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal 
42.13 	residential recreational property has a class rate of one percent for the first $500,000 of 
42.14 	market value, and 1.25 percent for the remaining market value, (iv) the market value of 
42.15 	property described in clause (4) has a class rate of one percent, (v) the market value of 
42.16 	property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi) 
42.17 	that portion of the market value of property in clause (9) qualifying for class 4c property 
42.18 	has a class rate of 1.25 percent. 
42.19 	(e) Class 4d property is qualifying low-income rental housing certified to the assessor 
42.20 	by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion 
42.21 	of the units in the building qualify as low-income rental housing units as certified under 
42.22 	section 273.128, subdivision 3, only the proportion of qualifying units to the total number 
42.23 	of units in the building qualify for class 4d. The remaining portion of the building shall be 
42.24 	classified by the assessor based upon its use. Class 4d also includes the same proportion of 
42.25 	land as the qualifying low-income rental housing units are to the total units in the building. 
42.26 	For all properties qualifying as class 4d, the market value determined by the assessor must 
42.27 	be based on the normal approach to value using normal unrestricted rents. 
42.28 	Class 4d property has a class rate of 0.75 percent. 

42.29 	EFFECTIVE 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 
42.32 	improved 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 
42.34 	not improved with a structure and for which there is no identifiable current use must be 
42.35 	classified according to its highest and best use permitted under the local zoning ordinance. 
43.1 	If the ordinance permits more than one use, the land must be classified according to the 
43.2 	highest and best use permitted under the ordinance. If no such ordinance exists, the 
43.3 	assessor shall consider the most likely potential use of the unimproved land based upon 
43.4 	the use made of surrounding land or land in proximity to the unimproved land.

43.5 	EFFECTIVE 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, 
43.8 	consisting of the pipeline system of mains, pipes, and equipment attached thereto, of 
43.9 	pipeline companies and others engaged in the operations or business of transporting natural 
43.10 	gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed with and 
43.11 	assessed by the commissioner of revenue and the values provided to the city or county 
43.12 	assessor by order. This subdivision shall not apply to the assessment of the products 
43.13 	transported through the pipelines nor to the lines of local commercial gas companies 
43.14 	engaged primarily in the business of distributing gas to consumers at retail nor to pipelines 
43.15 	used by the owner thereof to supply natural gas or other petroleum products exclusively 
43.16 	for such owner's own consumption and not for resale to others. If more than 85 percent 
43.17 	of the natural gas or other petroleum products actually transported over the pipeline is 
43.18 	used for the owner's own consumption and not for resale to others, then this subdivision 
43.19 	shall not apply; provided, however, that in that event, the pipeline shall be assessed in 
43.20 	proportion to the percentage of gas actually transported over such pipeline that is not used 
43.21 	for the owner's own consumption. On or before June 30 August 1, the commissioner shall 
43.22 	certify to the auditor of each county, the amount of such personal property assessment 
43.23 	against each company in each district in which such property is located. 

43.24 	EFFECTIVE DATE. This section is effective for assessment year 2009 and 
43.25 	thereafter.

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 
43.28 	than 69 kv, transmission lines of 69 kv and above located in an unorganized township, 
43.29 	and distribution lines, and equipment attached thereto, having a fixed situs outside the 
43.30 	corporate limits of cities except distribution lines taxed as provided in sections 273.40 and 
43.31 	273.41, shall be listed with and assessed by the commissioner of revenue in the county 
43.32 	where situated and the values provided to the city or county assessor by order. The 
43.33 	commissioner shall assess such property at the percentage of market value fixed by law; 
44.1 	and, on or before June 30 August 1, shall certify to the auditor of each county in which 
44.2 	such property is located the amount of the assessment made against each company and 
44.3 	person owning such property. 

44.4 	EFFECTIVE DATE. This section is effective for assessment year 2009 and 
44.5 	thereafter.

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 
44.8 	county may appoint a special board of equalization and may delegate to it the powers and 
44.9 	duties in subdivision 1. The special board of equalization shall serve at the direction and 
44.10 	discretion of the appointing county board, subject to the restrictions imposed by law on 
44.11 	the appointing board. The appointing board may determine the number of members to be 
44.12 	appointed to the special board, the compensation and expenses to be paid, and the term of 
44.13 	office of each member. At least one member of the special board of equalization must be 
44.14 	an appraiser, realtor, or other person familiar with property valuations in the county. The 
44.15 	county auditor is a nonvoting member and serves as the recorder for the special board.
44.16 	The special board is subject to the quorum requirements for county boards and the training 
44.17 	requirements for county boards in section 274.135, subdivision 2.

44.18 	EFFECTIVE 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 
44.21 	conducts county boards of appeal and equalization meetings must provide proof to the 
44.22 	commissioner by December 1, 2009, and each year thereafter, that it is in compliance 
44.23 	with the requirements of subdivision 2. Beginning in 2009, this notice must also verify 
44.24 	that there was a quorum of voting members at each meeting of the board of appeal and 
44.25 	equalization in the current year. A county that does not comply with these requirements 
44.26 	is deemed to have transferred its board of appeal and equalization powers to the special 
44.27 	board of equalization appointed pursuant to section 274.13, subdivision 2, beginning 
44.28 	with the following year's assessment and continuing unless the powers are reinstated 
44.29 	under paragraph (c). A county that does not comply with the requirements of subdivision 
44.30 	2 and has not appointed a special board of equalization shall appoint a special board of 
44.31 	equalization before the following year's assessment. 
44.32 	(b) The county shall notify the taxpayers when the board of appeal and equalization 
44.33 	for a county has been transferred to the special board of equalization under this subdivision 
45.1 	and, prior to the meeting time of the special board of equalization, the county shall make 
45.2 	available to those taxpayers a procedure for a review of the assessments, including, but 
45.3 	not limited to, open book meetings. This alternate review process must take place in 
45.4 	April and May. 
45.5 	(c) A county board whose powers are transferred to the special board of equalization 
45.6 	under this subdivision may be reinstated by resolution of the county board and upon proof 
45.7 	of compliance with the requirements of subdivision 2. The resolution and proofs must be 
45.8 	provided to the commissioner by December 1 in order to be effective for the following 
45.9 	year's assessment. 
45.10 	(d) If a person who was entitled to appeal to the county board of appeal and 
45.11 	equalization or to the county special board of equalization is not able to do so in a 
45.12 	particular year because the county board or special board did not meet the quorum and 
45.13 	training requirements in this section and section 274.13, or because the special board 
45.14 	was not appointed, that person may instead appeal to the commissioner of revenue, 
45.15 	provided that the appeal is received by the commissioner prior to August 1. The appeal 
45.16 	is not subject to either chapter 14 or section 270C.92. The commissioner must issue 
45.17 	an appropriate order to the county assessor in response to each timely appeal, either 
45.18 	upholding or changing the valuation or classification of the property. Prior to October 1 of 
45.19 	each 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. 
45.21 	Amounts received by the commissioner under this paragraph must be deposited in the 
45.22 	state's general fund. If payment of a billed amount is not received by the commissioner 
45.23 	before December 1 of the year when billed, the commissioner must deduct that unpaid 
45.24 	amount from any state aid the commissioner would otherwise pay to the county under 
45.25 	chapter 477A in the next year. Late payments may either be returned to the county 
45.26 	uncashed and undeposited or may be accepted. If a late payment is accepted, the state aid 
45.27 	paid to the county under chapter 477A must be adjusted within 12 months to eliminate any 
45.28 	reduction that occurred because the payment was late. Amounts needed to make these 
45.29 	adjustments are included in the appropriation under section 477A.03, subdivision 2.

45.30 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and 
45.31 	thereafter.

45.32 	Sec. 16. Minnesota Statutes 2008, section 274.14, is amended to read:
45.33 	274.14 LENGTH OF SESSION; RECORD.
46.1 	The board may must meet on anyafter the second Friday in June on at least one 
46.2 	meeting day and may meet for up to ten consecutive meeting days in June, after the 
46.3 	second Friday in June. The actual meeting dates must be contained on the valuation 
46.4 	notices mailed to each property owner in the county as provided in section 273.121. For 
46.5 	this purpose, "meeting days" is defined as any day of the week excluding Sunday. At 
46.6 	the board's discretion, "meeting days" may include Saturday. No action taken by the 
46.7 	county board of review after June 30 is valid, except for corrections permitted in sections 
46.8 	273.01 and 274.01. The county auditor shall keep an accurate record of the proceedings 
46.9 	and orders of the board. The record must be published like other proceedings of county 
46.10 	commissioners. A copy of the published record must be sent to the commissioner of 
46.11 	revenue, 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 
46.13 	meetings, at least one of the meeting days must include a meeting that does not end 
46.14 	before 7:00 p.m. For counties that require taxpayer appointments for the board of review, 
46.15 	appointments must include some available times that extend until at least 7:00 p.m. The 
46.16 	county may have a Saturday meeting in lieu of, or in addition to, the extended meeting 
46.17 	times under this paragraph.

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

46.19 	Sec. 17. Minnesota Statutes 2008, section 274.175, is amended to read:
46.20 	274.175 VALUES FINALIZED.
46.21 	The assessments recorded by the county assessor and the county auditor under 
46.22 	sections 273.124, subdivision 9; 274.16; 274.17; or other law for real and personal 
46.23 	property are final on July 1 of the assessment year, except for property added to the 
46.24 	assessment rolls under section 272.02, subdivision 38, and assessments certified to the 
46.25 	auditor under sections 273.33, subdivision 2, and 273.37, subdivision 2, or deleted 
46.26 	because of tax forfeiture pursuant to chapter 281. No changes in value may be made 
46.27 	after July 1 of the assessment year, except for corrections permitted in sections 273.01
46.28 	and 274.01, or assessments certified to the auditor under sections 273.33, subdivision 2, 
46.29 	and 273.37, subdivision 2.  

46.30 	EFFECTIVE DATE. This section is effective for assessment year 2009 and 
46.31 	thereafter.

47.1 	Sec. 18. Minnesota Statutes 2008, section 290C.06, is amended to read:
47.2 	290C.06 CALCULATION OF AVERAGE ESTIMATED MARKET VALUE; 
47.3 	TIMBERLAND MANAGED FOREST LAND.
47.4 	The commissioner shall annually calculate a statewide average estimated market 
47.5 	value per acre for class 2b timberland2c managed forest land under section 273.13, 
47.6 	subdivision 23, paragraph (b).

47.7 	EFFECTIVE DATE. This section is effective for calculations made in 2010 and 
47.8 	thereafter.

47.9 	Sec. 19. Minnesota Statutes 2008, section 290C.07, is amended to read:
47.10 	290C.07 CALCULATION OF INCENTIVE PAYMENT.
47.11 	An approved claimant under the sustainable forest incentive program is eligible to 
47.12 	receive 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 
47.14 	previous year's statewide average total township tax rate and the a class rate for class 2b 
47.15 	timberland under section 273.13, subdivision 23, paragraph (b) of one percent, if the land 
47.16 	were valued at (i) the average statewide timberland managed forest land market value per 
47.17 	acre calculated under section 290C.06, and (ii) the average statewide timberland managed 
47.18 	forest 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 
47.20 	year's statewide average total township tax rate, the estimated market value per acre as 
47.21 	calculated in section 290C.06, and the a class rate for 2b timberland under section 273.13, 
47.22 	subdivision 23, paragraph (b) of one percent, provided that the payment shall be no less 
47.23 	than $7 per acre for each acre enrolled in the sustainable forest incentive program. 

47.24 	EFFECTIVE DATE. This section is effective for calculations made in 2010 and 
47.25 	thereafter.

47.26 	Sec. 20. Minnesota Statutes 2008, section 477A.011, subdivision 34, is amended to 
47.27 	read:
47.28 		Subd. 34.City revenue need. (a) For a city with a population equal to or greater 
47.29 	than 2,500, "city revenue need" is the greater of 285 or the sum of (1) 5.0734098 times the 
47.30 	pre-1940 housing percentage; plus (2) 19.141678 times the population decline percentage; 
47.31 	plus (3) 2504.06334 times the road accidents factor; plus (4) 355.0547; minus (5) the 
47.32 	metropolitan 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 
48.3 	industrial percentage; plus (3) 3.16042 times the population decline percentage; plus (4) 
48.4 	1.206 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 
48.6 	recently available five years that was less than 2,500, "city revenue need" is the sum of (1) 
48.7 	its city revenue need calculated under paragraph (a) multiplied by its transition factor; 
48.8 	plus (2) its city revenue need calculated under the formula in paragraph (b) multiplied 
48.9 	by the difference between one and its transition factor. For purposes of this paragraph, a 
48.10 	city's "transition factor" is equal to 0.2 multiplied by the number of years that the city's 
48.11 	population estimate has been 2,500 or more. This provision only applies for aids payable 
48.12 	in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500. It 
48.13 	applies to any city for aids payable in 2009 and thereafter. The city revenue need under 
48.14 	this 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, 
48.17 	as determined in paragraphs (a) to (d), is multiplied by the ratio of the annual implicit 
48.18 	price deflator for government consumption expenditures and gross investment for state 
48.19 	and local governments as prepared by the United States Department of Commerce, for 
48.20 	the most recently available year to the 2003 implicit price deflator for state and local 
48.21 	government purchases.

48.22 	EFFECTIVE DATE. This section is effective for aids payable in 2009 and 
48.23 	thereafter.

48.24 	Sec. 21. Minnesota Statutes 2008, section 477A.011, subdivision 42, is amended to 
48.25 	read:
48.26 		Subd. 42.City jobs base. (a) "City jobs base" for a city with a population of 5,000 or 
48.27 	more 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 
48.29 	to zero. For a city receiving aid under subdivision 36, paragraph (l) (k), its city jobs base 
48.30 	is reduced by the lesser of 36 percent of the amount of aid received under that paragraph 
48.31 	or $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 
48.33 	determined in paragraph (a), is multiplied by the ratio of the appropriation under section 
48.34 	477A.03, subdivision 2a, for the year in which the aid is paid to the appropriation under 
48.35 	that section for aids payable in 2009.
49.1 	(c) For purposes of this subdivision, "jobs per capita in the city" means (1) the 
49.2 	average annual number of employees in the city based on the data from the Quarterly 
49.3 	Census of Employment and Wages, as reported by the Department of Employment and 
49.4 	Economic Development, for the most recent calendar year available as of May 1, 2008, 
49.5 	divided by (2) the city's population for the same calendar year as the employment data. 
49.6 	The commissioner of the Department of Employment and Economic Development shall 
49.7 	certify to the city the average annual number of employees for each city by June 1, 2008. 
49.8 	A city may challenge an estimate under this paragraph by filing its specific objection, 
49.9 	including the names of employers that it feels may have misreported data, in writing with 
49.10 	the commissioner by June 20, 2008. The commissioner shall make every reasonable effort 
49.11 	to address the specific objection and adjust the data as necessary. The commissioner shall 
49.12 	certify the estimates of the annual employment to the commissioner of revenue by July 15, 
49.13 	2008, including any estimates still under objection.

49.14 	EFFECTIVE DATE. This section is effective for aids payable in 2009 and 
49.15 	thereafter.

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 
49.18 	is equal to the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need 
49.19 	increase percentage multiplied by its unmet need. 
49.20 	(b) In calendar year 2010 and subsequent years, the formula aid for a city is equal 
49.21 	to the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need increase 
49.22 	percentage multiplied by the average of its unmet need for the most recently available 
49.23 	two years.
49.24 	No city may have a formula aid amount less than zero. The need increase percentage 
49.25 	must be the same for all cities. 
49.26 	The applicable need increase percentage must be calculated by the Department of 
49.27 	Revenue so that the total of the aid under subdivision 9 equals the total amount available 
49.28 	for aid under section 477A.03. For aids payable in 2009 only, all data used in calculating 
49.29 	aid to cities under sections 477A.011 to 477A.013 will be based on the data available for 
49.30 	calculating aid to cities for aids payable in 2008. For aids payable in 2010 and thereafter, 
49.31 	data used in calculating aids to cities under sections 477A.011 to 477A.013 shall be the 
49.32 	most recently available data as of January 1 in the year in which the aid is calculated
49.33 	except as provided in section 477A.011, subdivisions 3 and 35.

50.1 	EFFECTIVE DATE. This section is effective for assessment year 2009 and 
50.2 	thereafter.

50.3 	Sec. 23.  REPEALER.
 50.4 	Minnesota Rules, parts 8115.0200; 8115.0300; 8115.0400; 8115.0500; 8115.0600; 
50.5 	8115.1000; 8115.1100; 8115.1200; 8115.1300; 8115.1400; 8115.1500; 8115.1600; 
50.6 	8115.1700; 8115.1800; 8115.1900; 8115.2000; 8115.2100; 8115.2200; 8115.2300; 
50.7 	8115.2400; 8115.2500; 8115.2600; 8115.2700; 8115.2800; 8115.2900; 8115.3000; 
50.8 	8115.4000; 8115.4100; 8115.4200; 8115.4300; 8115.4400; 8115.4500; 8115.4600; 
50.9 	8115.4700; 8115.4800; 8115.4900; 8115.5000; 8115.5100; 8115.5200; 8115.5300; 
50.10 	8115.5400; 8115.5500; 8115.5600; 8115.5700; 8115.5800; 8115.5900; 8115.6000; 
50.11 	8115.6100; 8115.6200; 8115.6300; 8115.6400; and 8115.9900; are repealed.

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

50.13 	ARTICLE 5
50.14 	CONDITIONAL USE DEEDS

50.15 	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 
50.17 	policy of this state to encourage the best use of tax-forfeited lands, recognizing that some 
50.18 	lands in public ownership should be retained and managed for public benefits while other 
50.19 	lands should be returned to private ownership (a) When acting on behalf of the state under 
50.20 	laws allowing the county board to classify and manage tax-forfeited lands held by the 
50.21 	state in trust for the local units as provided in section 281.25, the county board has the 
50.22 	discretion to decide that some lands in public ownership should be retained and managed 
50.23 	for public benefits while other lands should be returned to private ownership. Parcels 
50.24 	of land becoming the property of the state in trust under law declaring the forfeiture 
50.25 	of lands to the state for taxes must be classified by the county board of the county in 
50.26 	which the parcels lie as conservation or nonconservation. In making the classification the 
50.27 	board shall consider the present use of adjacent lands, the productivity of the soil, the 
50.28 	character of forest or other growth, accessibility of lands to established roads, schools, 
50.29 	and other public services, their peculiar suitability or desirability for particular uses, and 
50.30 	the suitability of the forest resources on the land for multiple use, and sustained yield 
50.31 	management. The classification, furthermore, must: (1) encourage and foster a mode of 
50.32 	land utilization that will facilitate the economical and adequate provision of transportation, 
50.33 	roads, water supply, drainage, sanitation, education, and recreation; (2) facilitate reduction 
51.1 	of governmental expenditures; (3) conserve and develop the natural resources; and(4) 
51.2 	protect and sustain important environmental and ecological systems; and (5) foster and 
51.3 	develop agriculture and other industries in the districts and places best suited to them.
51.4 	In making the classification the county board may use information made available 
51.5 	by any office or department of the federal, state, or local governments, or by any other 
51.6 	person or agency possessing pertinent information at the time the classification is made. 
51.7 	The lands may be reclassified from time to time as the county board considers necessary 
51.8 	or desirable, except for conservation lands held by the state free from any trust in favor of 
51.9 	any taxing district.
51.10 	If the lands are located within the boundaries of an organized town, with taxable 
51.11 	valuation in excess of $20,000, or incorporated municipality, the classification or 
51.12 	reclassification and sale must first be approved by the town board of the town or the 
51.13 	governing body of the municipality in which the lands are located. The town board of 
51.14 	the town or the governing body of the municipality is considered to have approved 
51.15 	the classification or reclassification and sale if the county board is not notified of the 
51.16 	disapproval of the classification or reclassification and sale within 60 days of the date the 
51.17 	request for approval was transmitted to the town board of the town or governing body 
51.18 	of the municipality. If the town board or governing body desires to acquire any parcel 
51.19 	lying in the town or municipality by procedures authorized in this section, it must file a 
51.20 	written application with the county board to withhold the parcel from public sale. The 
51.21 	application must be filed within 60 days of the request for classification or reclassification 
51.22 	and sale. The county board shall then withhold the parcel from public sale for six months. 
51.23 	A municipality or governmental subdivision shall pay maintenance costs incurred by 
51.24 	the county during the six-month period while the property is withheld from public sale, 
51.25 	provided the property is not offered for public sale after the six-month period. A clerical 
51.26 	error made by county officials does not serve to eliminate the request of the town board 
51.27 	or governing body if the board or governing body has forwarded the application to the 
51.28 	county auditor. If the town board or governing body of the municipality fails to submit an 
51.29 	application and a resolution of the board or governing body to acquire the property within 
51.30 	the withholding period, the county may offer the property for sale upon the expiration of 
51.31 	the withholding period.
51.32 	(b) Whenever the county board deems it appropriate, the board may hold a meeting 
51.33 	for the purpose of reclassifying tax-forfeited land that has not been sold or released from 
51.34 	the trust. The criteria and procedures for reclassification are the same as those required for 
51.35 	an initial classification.
52.1 	(c) Prior to meeting for the purpose of classifying or reclassifying tax-forfeited lands, 
52.2 	the county board must give notice of its intent to meet for that purpose as provided in this 
52.3 	paragraph. The notice must be given no more than 90 days and no less than 60 days before 
52.4 	the date of the meeting; provided that if the meeting is rescheduled, notice of the new 
52.5 	date, time, and location must be given at least 14 days before the date of the rescheduled 
52.6 	meeting. The notice must be posted on a Web site. The notice must also be mailed or 
52.7 	otherwise delivered to each person who has filed a request for notice of special meetings 
52.8 	with the public body, regardless of whether the matter is considered at a regular or special 
52.9 	meeting. The notice must be mailed or delivered at least 60 days before the date of the 
52.10 	meeting. If the meeting is rescheduled, notice of the new date, time, and location must be 
52.11 	mailed or delivered at least 14 days before the date of the rescheduled meeting. The public 
52.12 	body shall publish the notice once, at least 30 days before the meeting, in a newspaper of 
52.13 	general circulation within the area of the public body's authority. The board must also mail 
52.14 	a notice by electronic means to each person who requests notice of meetings dealing with 
52.15 	this subject and who agrees as provided in chapter 325L to accept notice that is mailed 
52.16 	by electronic means. Receipt of actual notice under the conditions specified in section 
52.17 	13D.04, subdivision 7, satisfies the notice requirements of this paragraph.
52.18 	The board may classify or reclassify tax-forfeited lands at any regular or special 
52.19 	meeting, as those terms are defined in chapter 13D and may conduct only this business, or 
52.20 	this 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 
52.22 	pertinent information to make or submit comments and recommendations about the 
52.23 	pending classification or reclassification. In addition, representatives of governmental 
52.24 	entities in attendance must be allowed to describe plans, ideas, or projects that may 
52.25 	involve use or acquisition of the property by that or another governmental entity. The 
52.26 	county board must solicit and consider any relevant components of current municipal or 
52.27 	metropolitan comprehensive land use plans that incorporate the area in which the land 
52.28 	is located. After allowing testimony, the board may classify, reclassify, or delay taking 
52.29 	action on any parcel or parcels. In order for a state agency or a governmental subdivision 
52.30 	of the state to preserve its right to request a purchase or other acquisition of a forfeited 
52.31 	parcel, it may, at any time following forfeiture, file a written request to withhold the parcel 
52.32 	from sale or lease to others under the provisions of subdivision 1a.
52.33 	(e) When classifying, reclassifying, appraising, and selling lands under this chapter, 
52.34 	the county board may designate the tracts as assessed and acquired, or may by resolution 
52.35 	provide for the subdivision of the tracts into smaller units or for the grouping of several 
52.36 	tracts into one tract when the subdivision or grouping is deemed advantageous for 
53.1 	conservation or sale purposes. This paragraph does not authorize the county board to 
53.2 	subdivide a parcel or tract of tax-forfeited land that, as assessed and acquired, is withheld 
53.3 	from sale under section 282.018, subdivision 1.
53.4 	(f) A county board may by resolution elect to use the classification and 
53.5 	reclassification procedures provided in paragraphs (g), (h), and (i), instead of the 
53.6 	procedures provided in paragraphs (b), (c), and (d). Once an election is made under this 
53.7 	paragraph, 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 
53.9 	released from the trust may be made by the county board using information made available 
53.10 	to it by any office or department of the federal, state, or local governments, or by any other 
53.11 	person 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 
53.13 	incorporated municipality, a classification or reclassification and sale must first be 
53.14 	approved by the town board of the town or the governing body of the municipality in 
53.15 	which the lands are located. The town board of the town or the governing body of the 
53.16 	municipality is considered to have approved the classification or reclassification and sale 
53.17 	if the county board is not notified of the disapproval of the classification or reclassification 
53.18 	and sale within 60 days of the date the request for approval was transmitted to the town 
53.19 	board of the town or governing body of the municipality. If the town board or governing 
53.20 	body disapproves of the classification or reclassification and sale, the county board must 
53.21 	follow the procedures in paragraphs (c) and (d), with regard to the parcel, and must 
53.22 	additionally cause to be published in a newspaper a notice of the date, time, location, and 
53.23 	purpose of the required meeting.
53.24 	(i) If a town board or a governing body of a municipality desires to acquire any 
53.25 	parcel lying in the town or municipality by procedures authorized in this section, it may 
53.26 	file a written request under subdivision 1a, paragraph (a).

53.27 	EFFECTIVE 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 
53.30 	from a state agency or a governmental subdivision of the state, a parcel of unsold 
53.31 	tax-forfeited land must be withheld from sale or lease to others for a maximum of six 
53.32 	months. The request must be submitted to the county auditor. Upon receipt, the county 
53.33 	auditor must withhold the parcel from sale or lease to any other party for six months, and 
53.34 	must confirm the starting date of the six-month withholding period to the requesting 
53.35 	agency or subdivision. If the request is from a governmental subdivision of the state, the 
54.1 	governmental subdivision must pay the maintenance costs incurred by the county during 
54.2 	the period the parcel is withheld. The county board may approve a sale or conveyance to 
54.3 	the requesting party during the withholding period. A conveyance of the property to the 
54.4 	requesting party terminates the withholding period.
54.5 	A governmental subdivision of the state must not make, and a county auditor must 
54.6 	not act upon, a second request to withhold a parcel from sale or lease within 18 months 
54.7 	of a previous request for that parcel. A county may reject a request made under this 
54.8 	paragraph if the request is made more than 30 days after the county has given notice to the 
54.9 	requesting state agency or governmental subdivision of the state that the county intends to 
54.10 	sell or otherwise dispose of the property.
54.11 	(b) Nonconservation tax-forfeited lands may be sold by the county board, for 
54.12 	their market value as determined by the county board, to an organized or incorporated 
54.13 	governmental subdivision of the state for any public purpose for which the subdivision is 
54.14 	authorized to acquire property or. When the term "market value" is used in this section, it 
54.15 	means an estimate of the full and actual market value of the parcel as determined by the 
54.16 	county board, but in making this determination, the board and the persons employed by or 
54.17 	under contract with the board in order to perform, conduct, or assist in the determination, 
54.18 	are 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 
54.20 	taxing districts on application of to the county board by a state agency for an authorized 
54.21 	use 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 
54.23 	organized or incorporated governmental subdivision of the state or state agency for less 
54.24 	than their market value if:
54.25 	(1) the county board determines that a sale at a reduced price is in the public interest 
54.26 	because a reduced price is necessary to provide an incentive to correct the blighted 
54.27 	conditions that make the lands undesirable in the open market, or the reduced price will 
54.28 	lead to the development of affordable housing; and
54.29 	(2) the governmental subdivision or state agency has documented its specific plans 
54.30 	for correcting the blighted conditions or developing affordable housing, and the specific 
54.31 	law or laws that empower it to acquire real property in furtherance of the plans.
54.32 	If the sale under this paragraph is to a governmental subdivision of the state, the 
54.33 	commissioner of revenue must convey the property on behalf of the state by quit claim 
54.34 	deed. If the sale under this paragraph is to a state agency, the commissioner must issue a 
54.35 	conveyance document that releases the property from the trust in favor of the taxing 
54.36 	districts.
55.1 	(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts 
55.2 	may be conveyed by the commissioner of revenue may convey by deed in the name 
55.3 	of the state a tract of tax-forfeited land held in trust in favor of the taxing districts to a 
55.4 	governmental subdivision for an authorized public use, if an application is submitted to 
55.5 	the commissioner which includes a statement of facts as to the use to be made of the tract 
55.6 	and the need therefor and the favorable recommendation of the county board. For the 
55.7 	purposes of this paragraph, "authorized public use" means a use that allows an indefinite 
55.8 	segment of the public to physically use and enjoy the property in numbers appropriate 
55.9 	to its size and use, or is for a public service facility. Authorized public uses as defined 
55.10 	in 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 
55.13 	amenities such as campgrounds, playgrounds, athletic fields, trails, or shelters;
55.14 	(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along 
55.15 	with 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; and
55.20 	(8) public service facilities such as fire halls, police stations, lift stations, water 
55.21 	towers, sanitation facilities, water treatment facilities, and administrative offices.
55.22 	(f) The commissioner of revenue shall convey a parcel of nonconservation 
55.23 	tax-forfeited land to a local governmental subdivision of the state by quit claim deed 
55.24 	on behalf of the state upon the favorable recommendation of the county board if the 
55.25 	governmental subdivision has certified to the board that prior to forfeiture the subdivision 
55.26 	was entitled to the parcel under a written development agreement or instrument, but 
55.27 	the conveyance failed to occur prior to forfeiture. No compensation or consideration is 
55.28 	required for, and no conditions attach to, the conveyance.
55.29 	(g) The commissioner of revenue shall convey a parcel of nonconservation 
55.30 	tax-forfeited land to the association of a common interest community by quit claim deed 
55.31 	upon the favorable recommendation of the county board if the association certifies to the 
55.32 	board that prior to forfeiture the association was entitled to the parcel under a written 
55.33 	agreement, but the conveyance failed to occur prior to forfeiture. No compensation or 
55.34 	consideration 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 
55.36 	state 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) 
56.2 	preservation, or restoration and preservation, of the land in its natural state. The deed must 
56.3 	contain a restrictive covenant limiting the use of the land to one of these purposes for 
56.4 	30 years or until the property is reconveyed back to the state in trust. At any time, the 
56.5 	governmental subdivision may reconvey the property to the state in trust for the taxing 
56.6 	districts. The deed of reconveyance is subject to approval by the commissioner of revenue. 
56.7 	No part of a purchase price determined under this paragraph shall be refunded upon a 
56.8 	reconveyance, but the amount paid for a conveyance under this paragraph may be taken 
56.9 	into account by the county board when setting the terms of a future sale of the same 
56.10 	property to the same governmental subdivision under paragraph (b) or (d). If the lands 
56.11 	are unplatted and located outside of an incorporated municipality and the commissioner 
56.12 	of natural resources determines there is a mineral use potential, the sale is subject to the 
56.13 	approval of the commissioner of natural resources.

56.14 	EFFECTIVE 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 
56.17 	subdivision 1a, in the case of tax-forfeited lands located in a targeted neighborhood, as 
56.18 	defined in section 469.201, subdivision 10 in a city of the first class, the commissioner of 
56.19 	revenue shall convey by quit claim deed in the name of the state any tract of tax-forfeited 
56.20 	land held in trust in favor of the taxing districts, to a political subdivision of the state that 
56.21 	submits an application to the commissioner of revenue and the favorable recommendation 
56.22 	of the county board. For purposes of this subdivision, the term "targeted neighborhood" 
56.23 	has the meaning given in section 469.201, subdivision 10, except that the land must be 
56.24 	located within a first class city.
56.25 	(b) The application under paragraph (a) must include a statement of facts as to the 
56.26 	use to be made of the tract, the need therefor, and a resolution, adopted by the governing 
56.27 	body of the political subdivision, finding that the conveyance of a tract of tax-forfeited 
56.28 	land to the political subdivision is necessary to provide for the redevelopment of land as 
56.29 	productive taxable property. Deeds of conveyance issued under paragraph (a) are not 
56.30 	conditioned on continued use of the property for the use stated in the application.

56.31 	EFFECTIVE 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 
57.2 	property conveyed for a an authorized public use under the authorities in subdivision 
57.3 	1a, paragraph (e), must be on a form approved by the attorney general and must be 
57.4 	conditioned on continued use for the purpose stated in the application as provided in this 
57.5 	section. These deeds are conditional use deeds that convey a defeasible estate. Reversion 
57.6 	of the estate occurs by operation of law and without the requirement for any affirmative 
57.7 	act by or on behalf of the state when there is a failure to put the property to the approved 
57.8 	authorized public use for which it was conveyed, or an abandonment of that use, except as 
57.9 	provided in subdivision 1d.

57.10 	EFFECTIVE 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 
57.13 	from the date of the conveyance a governmental subdivision to which tax-forfeited land 
57.14 	has been conveyed for a specified an authorized public use as provided in this section
57.15 	subdivision 1a, paragraph (e), fails to put the land to that use, or abandons that use, the 
57.16 	governing body of the subdivision may, must: (1) with the approval of the county board, 
57.17 	purchase the property for an authorized public purpose at the present appraised market
57.18 	value as determined by the county board. In that case, the commissioner of revenue 
57.19 	shall, upon proper written application approved by the county board, issue an appropriate 
57.20 	deed to the subdivisions free of a use restriction and reverter. The governing body may 
57.21 	also, or (2) authorize the proper officers to convey the land, or the part of the land not 
57.22 	required for an authorized public use, to the state of Minnesota. in trust for the taxing 
57.23 	districts. If the governing body purchases the property under clause (1), the commissioner 
57.24 	of revenue shall, upon property application submitted by the county auditor, convey 
57.25 	the property on behalf of the state by quit claim deed to the subdivision free of a use 
57.26 	restriction and the possibility of reversion or defeasement. If the governing body decides 
57.27 	to reconvey the property to the state under clause (2), the officers shall execute a deed of 
57.28 	conveyance immediately. The conveyance is subject to the approval of the commissioner 
57.29 	and its form must be approved by the attorney general. A sale, lease, transfer, or other 
57.30 	conveyance of tax-forfeited lands by a housing and redevelopment authority, a port 
57.31 	authority, an economic development authority, or a city as authorized by chapter 469 is not 
57.32 	an abandonment of use and the lands shall not be reconveyed to the state nor shall they 
57.33 	revert to the state. A certificate made by a housing and redevelopment authority, a port 
57.34 	authority, an economic development authority, or a city referring to a conveyance by it 
57.35 	and stating that the conveyance has been made as authorized by chapter 469 may be filed 
58.1 	with the county recorder or registrar of titles, and the rights of reverter in favor of the state 
58.2 	provided by subdivision 1e will then terminate. No vote of the people is required for the 
58.3 	conveyance. For the purposes of this subdivision, there is no failure to put the land to the 
58.4 	authorized public use and no abandonment of that use if a formal plan of the governmental 
58.5 	subdivision, including, but not limited to, a comprehensive plan or land use plan that 
58.6 	shows 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 
58.8 	deed executed by the commissioner of revenue after January 1, 2006, may be acquired 
58.9 	by that governmental subdivision after 15 years from the date of the conveyance if 
58.10 	the commissioner determines upon written application from the subdivision that the 
58.11 	subdivision has in fact put the property to the authorized public use for which it was 
58.12 	conveyed, and the subdivision has made a finding that it has no current plans to change 
58.13 	the use of the lands. Prior to conveying the property, the commissioner shall inquire 
58.14 	whether the county board where the land is located objects to a conveyance of the property 
58.15 	to the subdivision without conditions and without further act by or obligation of the 
58.16 	subdivision. If the county does not object within 60 days, and the commissioner makes 
58.17 	a favorable determination, the commissioner shall issue a quit claim deed on behalf of 
58.18 	the state unconditionally conveying the property to the governmental subdivision. For 
58.19 	purposes of this paragraph, demonstration of an intended future use for the authorized 
58.20 	public use in a formal plan of the governmental subdivision does not constitute use for 
58.21 	that authorized public use.
58.22 	(c) Property held by a governmental subdivision of the state under a conditional use 
58.23 	deed executed by the commissioner of revenue before January 1, 2006, is released from 
58.24 	the use restriction and possibility of reversion on January 1, 2021, if the county board 
58.25 	records a document describing the land and citing this paragraph. The county board may 
58.26 	authorize the county treasurer to deduct the amount of the recording fees from future 
58.27 	settlements of property taxes to the subdivision.
58.28 	(d) All property held by a governmental subdivision of the state under a conditional 
58.29 	use deed executed by the commissioner of revenue is released from the use restriction 
58.30 	and possibility of reversion on the later of: (1) January 1, 2015; (2) 40 years after the 
58.31 	date the deed was executed; or (3) upon final resolution of an appeal to district court 
58.32 	under subdivision 1e if the appeal was commenced prior to January 1, 2015. Upon the 
58.33 	occurrence of clause (1), (2), or (3), the governmental subdivision may record a certificate 
58.34 	referring to the land, the original conveyance, and to the release under this paragraph.

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

59.1 	Sec. 6. Minnesota Statutes 2008, section 282.01, is amended by adding a subdivision 
59.2 	to read:
59.3 		Subd. 1g.Conditional use deed fees. (a) A governmental subdivision of the state 
59.4 	applying for a conditional use deed under subdivision 1a, paragraph (e), must submit a fee 
59.5 	of $250 to the commissioner of revenue along with the application. If the application is 
59.6 	denied, 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 
59.8 	conditional use deed revolving fund. The sums deposited into the revolving fund are 
59.9 	appropriated to the commissioner of revenue for the purpose of making the refunds 
59.10 	described in this subdivision, and administering conditional use deed laws.

59.11 	EFFECTIVE DATE. This section is effective for applications received by the 
59.12 	commissioner 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 
59.15 	conservation lands, unless reclassified as nonconservation lands, sold to a governmental 
59.16 	subdivision of the state, designated as lands primarily suitable for forest production and 
59.17 	sold as hereinafter provided, or released from the trust in favor of the taxing districts, as 
59.18 	herein provided, will must be held under the supervision of the county board of the county 
59.19 	within which such the parcels lie. and must not be conveyed or sold unless the lands are:
59.20 	The county board may, by resolution duly adopted, declare lands classified as 
59.21 	conservation lands as primarily suitable for timber production and as lands which should 
59.22 	be placed in private ownership for such purposes. If such action be approved by the 
59.23 	commissioner of natural resources, the lands so designated, or any part thereof, may be 
59.24 	sold by the county board in the same manner as provided for the sale of lands classified as 
59.25 	nonconservation lands. Such county action and the approval of the commissioner shall be 
59.26 	limited to lands lying within areas zoned for restricted uses under the provisions of Laws 
59.27 	1939, 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); or
59.32 	(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 
59.34 	classified as conservation lands shall be devoted to conservation uses and may submit 
59.35 	such a resolution to the commissioner of natural resources. If, upon investigation, 
60.1 	the commissioner of natural resources determines that the lands covered by such the
60.2 	resolution, or any part thereof, can be managed and developed for conservation purposes, 
60.3 	the commissioner shall make a certificate describing the lands and reciting the acceptance 
60.4 	thereof on behalf of the state for such purposes. The commissioner shall transmit the 
60.5 	certificate to the county auditor, who shall note the same upon the auditor's records and 
60.6 	record the same with the county recorder. The title to all lands so accepted shall be held 
60.7 	by the state free from any trust in favor of any and all taxing districts and such the lands 
60.8 	shall be devoted thereafter to the purposes of forestry, water conservation, flood control, 
60.9 	parks, game refuges, controlled game management areas, public shooting grounds, or 
60.10 	other public recreational or conservation uses, and managed, controlled, and regulated 
60.11 	for such purposes under the jurisdiction of the commissioner of natural resources and 
60.12 	the divisions of the department.
60.13 	(c) All proceeds derived from the sale of timber, lease of crops of hay, or other 
60.14 	revenue from lands under the jurisdiction of the commissioner of natural resources shall 
60.15 	be credited to the general fund of the state.
60.16 	In case (d) If the commissioner of natural resources shall determine determines that 
60.17 	any tract of land so held acquired by the state under paragraph (b) and situated within or 
60.18 	adjacent to the boundaries of any governmental subdivision of the state is suitable for use 
60.19 	by such the subdivision for any authorized public purpose, the commissioner may convey 
60.20 	such the tract by deed in the name of the state to such the subdivision upon the filing 
60.21 	with the commissioner of a resolution adopted by a majority vote of all the members 
60.22 	of the governing body thereof, stating the purpose for which the land is desired. The 
60.23 	deed of conveyance shall be upon a form approved by the attorney general and must be 
60.24 	conditioned upon continued use for the purpose stated in the resolution. All proceeds 
60.25 	derived from the sale of timber, lease of hay stumpage, or other revenue from such 
60.26 	lands under the jurisdiction of the natural resources commissioner shall be paid into the 
60.27 	general fund of the state.
60.28 	(e) The county auditor, with the approval of the county board, may lease conservation 
60.29 	lands remaining under the jurisdiction supervision of the county board and sell timber 
60.30 	and hay stumpage thereon in the manner hereinafter provided, and all proceeds derived 
60.31 	therefrom shall be distributed in the same manner as provided in section 282.04. 

60.32 	EFFECTIVE 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 
60.35 	classified as nonconservation, except those which may be reserved, shall be sold as 
61.1 	provided, if it is determined, by the county board of the county in which the parcels lie, 
61.2 	that it is advisable to do so, having in mind their accessibility, their proximity to existing 
61.3 	public improvements, and the effect of their sale and occupancy on the public burdens. 
61.4 	Any parcels of land proposed to be sold shall be first appraised by the county board of 
61.5 	the county in which the parcels lie. The parcels may be reappraised whenever the county 
61.6 	board 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 
61.8 	separately determined. No parcel of land containing any standing timber may be sold until 
61.9 	the appraised value of the timber on it and the sale of the land have been approved by the 
61.10 	commissioner of natural resources. The commissioner shall base review of a proposed 
61.11 	sale on the policy and considerations specified in subdivision 1. The decision of the 
61.12 	commissioner shall be in writing and shall state the reasons for it. The commissioner's 
61.13 	decision is exempt from the rulemaking provisions of chapter 14 and section 14.386
61.14 	does not apply. The county may appeal the decision of the commissioner in accordance 
61.15 	with chapter 14. 
61.16 	(c) In any county in which a state forest or any part of it is located, the county 
61.17 	auditor shall submit to the commissioner at least 60 days before the first publication of the 
61.18 	list of lands to be offered for sale a list of all lands included on the list which are situated 
61.19 	outside of any incorporated municipality. If, at any time before the opening of the sale, the 
61.20 	commissioner notifies the county auditor in writing that there is standing timber on any 
61.21 	parcel of such land, the parcel shall not be sold unless the requirements of this section 
61.22 	respecting the separate appraisal of the timber and the approval of the appraisal by the 
61.23 	commissioner have been complied with. The commissioner may waive the requirement 
61.24 	of the 60-day notice as to any parcel of land which has been examined and the timber 
61.25 	value approved as required by this section.
61.26 	(d) If any public improvement is made by a municipality after any parcel of land has 
61.27 	been forfeited to the state for the nonpayment of taxes, and the improvement is assessed in 
61.28 	whole or in part against the property benefited by it, the clerk of the municipality shall 
61.29 	certify to the county auditor, immediately upon the determination of the assessments for 
61.30 	the improvement, the total amount that would have been assessed against the parcel of land 
61.31 	if it had been subject to assessment; or if the public improvement is made, petitioned for, 
61.32 	ordered in or assessed, whether the improvement is completed in whole or in part, at any 
61.33 	time between the appraisal and the sale of the parcel of land, the cost of the improvement 
61.34 	shall be included as a separate item and added to the appraised value of the parcel of land 
61.35 	at the time it is sold. No sale of a parcel of land shall discharge or free the parcel of land 
61.36 	from lien for the special benefit conferred upon it by reason of the public improvement 
62.1 	until the cost of it, including penalties, if any, is paid. The county board shall determine 
62.2 	the amount, if any, by which the value of the parcel was enhanced by the improvement and 
62.3 	include the amount as a separate item in fixing the appraised value for the purpose of sale. 
62.4 	In classifying, appraising, and selling the lands, the county board may designate the tracts 
62.5 	as assessed and acquired, or may by resolution provide for the subdivision of the tracts into 
62.6 	smaller units or for the grouping of several tracts into one tract when the subdivision or 
62.7 	grouping is deemed advantageous for the purpose of sale. Each such smaller tract or larger 
62.8 	tract must be classified and appraised as such before being offered for sale. If any such 
62.9 	lands have once been classified, the board of county commissioners, in its discretion, may, 
62.10 	by resolution, authorize the sale of the smaller tract or larger tract without reclassification.

62.11 	EFFECTIVE 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 
62.14 	subdivision 3 must be conducted by the county auditor at the county seat of the county in 
62.15 	which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may 
62.16 	be conducted in any county facility within the county. The sale must not be for less than 
62.17 	the appraised value except as provided in subdivision 7a. The parcels must be sold for 
62.18 	cash only and at not less than the appraised value, unless the county board of the county 
62.19 	has adopted a resolution providing for their sale on terms, in which event the resolution 
62.20 	controls 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 
62.22 	purchase, 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 
62.24 	may the board require more than 12 installments annually, and the contract term must not 
62.25 	be for more than ten years. Standing timber or timber products must not be removed from 
62.26 	these lands until an amount equal to the appraised value of all standing timber or timber 
62.27 	products on the lands at the time of purchase has been paid by the purchaser. If a parcel of 
62.28 	land bearing standing timber or timber products is sold at public auction for more than 
62.29 	the appraised value, the amount bid in excess of the appraised value must be allocated 
62.30 	between the land and the timber in proportion to their respective appraised values. In that 
62.31 	case, standing timber or timber products must not be removed from the land until the 
62.32 	amount of the excess bid allocated to timber or timber products has been paid in addition 
62.33 	to the appraised value of the land. The purchaser is entitled to immediate possession, 
62.34 	subject to the provisions of any existing valid lease made in behalf of the state.
63.1 	For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price 
63.2 	is subject to interest at the rate determined pursuant to section 549.09. The unpaid balance 
63.3 	of the purchase price for sales occurring after December 31, 1990, is subject to interest 
63.4 	at the rate determined in section 279.03, subdivision 1a. The interest rate is subject to 
63.5 	change each year on the unpaid balance in the manner provided for rate changes in section 
63.6 	549.09 or 279.03, subdivision 1a, whichever, is applicable. Interest on the unpaid contract 
63.7 	balance on sales occurring before July 1, 1982, is payable at the rate applicable to the sale 
63.8 	at the time that the sale occurred. 

63.9 	EFFECTIVE 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 
63.12 	commence at the time determined by the county board of the county in which the parcels 
63.13 	are located. The county auditor shall offer the parcels of land in order in which they 
63.14 	appear in the notice of sale, and shall sell them to the highest bidder, but not for a sum 
63.15 	less than the appraised value, until all of the parcels of land have been offered. Then the 
63.16 	county auditor shall sell any remaining parcels to anyone offering to pay the appraised 
63.17 	value, except that if the person could have repurchased a parcel of property under section 
63.18 	282.012 or 282.241, that person may not purchase that same parcel of property at the sale 
63.19 	under this subdivision for a purchase price less than the sum of all taxes, assessments, 
63.20 	penalties, interest, and costs due at the time of forfeiture computed under section 282.251, 
63.21 	and any special assessments for improvements certified as of the date of sale. The sale 
63.22 	must continue until all the parcels are sold or until the county board orders a reappraisal or 
63.23 	withdraws any or all of the parcels from sale. The list of lands may be added to and the 
63.24 	added lands may be sold at any time by publishing the descriptions and appraised values. 
63.25 	The added lands must be: (1) parcels of land that have become forfeited and classified 
63.26 	as nonconservation since the commencement of any prior sale; (2) parcels classified as 
63.27 	nonconservation that have been reappraised; (3) parcels that have been reclassified as 
63.28 	nonconservation; or (4) other parcels that are subject to sale but were omitted from the 
63.29 	existing list for any reason. The descriptions and appraised values must be published in 
63.30 	the same manner as provided for the publication of the original list. Parcels added to the 
63.31 	list must first be offered for sale to the highest bidder before they are sold at appraised 
63.32 	value. All parcels of land not offered for immediate sale, as well as parcels that are offered 
63.33 	and not immediately sold, continue to be held in trust by the state for the taxing districts 
63.34 	interested in each of the parcels, under the supervision of the county board. Those parcels 
63.35 	may be used for public purposes until sold, as directed by the county board. 

64.1 	EFFECTIVE 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 
64.4 	or statutory city, or in a town which cannot be improved because of noncompliance with 
64.5 	local ordinances regarding minimum area, shape, frontage or access may be sold by the 
64.6 	county auditor pursuant to this subdivision if the auditor determines that a nonpublic sale 
64.7 	will encourage the approval of sale of the land by the city or town and promote its return 
64.8 	to the tax rolls. If the physical characteristics of the land indicate that its highest and best 
64.9 	use will be achieved by combining it with an adjoining parcel and the city or town has not 
64.10 	adopted a local ordinance governing minimum area, shape, frontage, or access, the land 
64.11 	may also be sold pursuant to this subdivision. If the property consists of an undivided 
64.12 	interest in land or land and improvements, the property may also be sold to the other 
64.13 	owners under this subdivision. The sale of land pursuant to this subdivision shall be 
64.14 	subject to any conditions imposed by the county board pursuant to section 282.03. The 
64.15 	governing body of the city or town may recommend to the county board conditions to be 
64.16 	imposed on the sale. The county auditor may restrict the sale to owners of lands adjoining 
64.17 	the land to be sold. The county auditor shall conduct the sale by sealed bid or may select 
64.18 	another means of sale. The land shall be sold to the highest bidder but in no event shall the 
64.19 	land and may be sold for less than its appraised value. All owners of land adjoining the 
64.20 	land to be sold shall be given a written notice at least 30 days prior to the sale. 
64.21 	This subdivision shall be liberally construed to encourage the sale and utilization 
64.22 	of tax-forfeited land, to eliminate nuisances and dangerous conditions and to increase 
64.23 	compliance with land use ordinances.

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

64.25 	Sec. 12. Minnesota Statutes 2008, section 287.2205, is amended to read:
64.26 	287.2205 TAX-FORFEITED LAND. 
64.27 	Before a state deed for tax-forfeited land may be issued, the deed tax must be paid 
64.28 	by the purchaser of tax-forfeited land whether the purchase is the result of a public 
64.29 	auction or private sale or a repurchase of tax-forfeited land. State agencies and local 
64.30 	units of government that acquire tax-forfeited land by purchase or any other means are 
64.31 	subject to this section. The deed tax is $1.65 for a conveyance of tax-forfeited lands to a 
64.32 	governmental subdivision for an authorized public use under section 282.01, subdivision 
64.33 	1a, or for redevelopment purposes under section 282.01, subdivision 1b. 

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

65.2 	Sec. 13.  REPEALER.
 65.3 	Minnesota Statutes 2008, sections 282.01, subdivisions 9, 10, and 11; and 383A.76,
65.4 	are repealed.

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

65.6 	ARTICLE 6
65.7 	MISCELLANEOUS

65.8 	Section 1. Minnesota Statutes 2008, section 270B.14, subdivision 16, is amended to 
65.9 	read:
65.10 		Subd. 16.Disclosure to law enforcement authorities. Under circumstances 
65.11 	involving threat of death or physical injury to any individual, or harassment of a 
65.12 	Department of Revenue employee, the commissioner may disclose return information 
65.13 	to the extent necessary to apprise appropriate federal, state, or local law enforcement 
65.14 	authorities of such circumstances. For purposes of this subdivision, "harassment" is 
65.15 	purposeful conduct directed at an individual and causing an individual to feel frightened, 
65.16 	threatened, oppressed, persecuted, or intimidated. For purposes of harassment, the return 
65.17 	information that initially can be disclosed is limited to the name, address, and phone 
65.18 	number of the harassing individual, the name of the employee being harassed, and the 
65.19 	nature and circumstances of the harassment. Data disclosed under this subdivision are 
65.20 	classified under section 13.82 once they are received by the law enforcement authority.  

65.21 	EFFECTIVE 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 
65.23 	to read:
65.24 		Subd. 5.Duration. Notwithstanding the provisions of any statutes to the contrary, 
65.25 	including section 15.059, the coordinating committee as established by this section to 
65.26 	oversee and coordinate preparation of the microdata samples of income tax returns and 
65.27 	other information shall not expire.

65.28 	EFFECTIVE 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 
66.2 	paragraph (b), the commissioner must publish lists of tax preparers as defined in section 
66.3 	289A.60, subdivision 13, paragraph (f), who have been convicted under section 289A.63
66.4 	for returns or claims prepared as a tax preparer or assessed penalties in excess of $1,000 
66.5 	under 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 
66.8 	and 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. 

66.11 	EFFECTIVE 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 
66.14 	preparer 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 
66.17 	the preparer fully paid all fines imposed, served any suspension, satisfied any sentence 
66.18 	imposed, and demonstrated to the satisfaction of the commissioner that the preparer has
66.19 	successfully completed any remedial actions required by the commissioner, the State 
66.20 	Board of Accountancy, or the Lawyers Board of Professional Responsibility; or
66.21 	(3) when the commissioner has been notified that the tax preparer is deceased.

66.22 	EFFECTIVE 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 
66.25 	others, has the control of, supervision of, or responsibility for filing returns or reports, 
66.26 	paying taxes, or collecting or withholding and remitting taxes and who fails to do so, or a 
66.27 	person who is liable under any other law, is liable for the payment of taxes, penalties, and 
66.28 	interest arising under chapters 295, 296A, 297A, 297F, and 297G, or sections 256.9658, 
66.29 	290.92, and 297E.02, and, for the taxes listed in this subdivision, the applicable penalties 
66.30 	for nonpayment under section 289A.60 and interest on those taxes. 

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

67.1 	Sec. 6. Minnesota Statutes 2008, section 289A.41, is amended to read:
67.2 	289A.41 BANKRUPTCY; SUSPENSION OF TIME.
67.3 	The running of the period during which a tax must be assessed or collection 
67.4 	proceedings commenced is suspended during the period from the date of a filing of a 
67.5 	petition in bankruptcy until 30 days after either notice to the commissioner of revenue that 
67.6 	the bankruptcy proceedings have been closed or dismissed, or notice that the automatic 
67.7 	stay has been terminated or has expired, whichever occurs first.
67.8 	The suspension of the statute of limitations under this section applies to the person 
67.9 	the petition in bankruptcy is filed against and other persons who may also be wholly or 
67.10 	partially liable for the tax.

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