<a id="pl.1.3"></a><var>1.3</var>year 2011, policy changes, and appropriation reductions for fiscal years 2012 and <br/>
<a id="pl.1.4"></a><var>1.4</var>2013; making changes to tax aids and credits and reducing payments; conforming <br/>
<a id="pl.1.5"></a><var>1.5</var>to certain changes in the Internal Revenue Code;amending Minnesota Statutes <br/>
<a id="pl.1.6"></a><var>1.6</var>2010, sections 256B.766; 270A.03, subdivision 7; 273.1384, subdivision 6, by <br/>
<a id="pl.1.7"></a><var>1.7</var>adding a subdivision; 289A.02, subdivision 7; 289A.50, subdivision 1; 290.01, <br/>
<a id="pl.1.8"></a><var>1.8</var>subdivisions 6, 19, 19a, 19c, 31; 290A.03, subdivisions 11, 13, 15; 290C.07; <br/>
<a id="pl.1.9"></a><var>1.9</var>477A.0124, by adding a subdivision; 477A.013, subdivision 9, by adding a <br/>
<a id="pl.1.10"></a><var>1.10</var>subdivision; 477A.03; Laws 2010, First Special Session chapter 1, article 5, <br/>
<a id="pl.1.11"></a><var>1.11</var>sections 4; 5; repealing Minnesota Statutes 2010, sections 10A.322, subdivision <br/>
<a id="pl.1.12"></a><var>1.12</var>4; 13.4967, subdivision 2; 290.06, subdivision 23.<br/>
<a id="pl.1.13"></a><var>1.13</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.1.16"></a><var>1.16</var>    Section 1. Laws 2010, First Special Session chapter 1, article 5, section 4, is amended <br/>
<a id="pl.1.17"></a><var>1.17</var>to read:<br/>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.1.18"></a><var>1.18</var><br/>
<a id="pl.1.19"></a><var>1.19</var><br/>
<a id="pl.1.20"></a><var>1.20</var><br/>
</td>
<td colspan="3">Sec. 4. <b>BOARD OF TRUSTEES OF THE </b><br/>
<b>MINNESOTA STATE COLLEGES AND </b><br/>
<b>UNIVERSITIES</b><br/>
</td>
<td align="center"><b>$</b><br/>
</td>
<td align="right"><b>-0-</b><br/>
</td>
<td align="center"><b>$</b><br/>
</td>
<td align="right"><b>(50,000,000)</b><br/>
</td>
</tr>
</table><a id="pl.1.21"></a><var>1.21</var>$2,079,000 of the reduction in 2011 is from <br/>
<a id="pl.1.22"></a><var>1.22</var>the central offices and shared services unit <br/>
<a id="pl.1.23"></a><var>1.23</var>appropriation. None of these reductions may <br/>
<a id="pl.1.24"></a><var>1.24</var>be charged back or allocated to the campuses.<br/>
<a id="pl.1.25"></a><var>1.25</var>$47,921,000 of the reduction in 2011 <br/>
<a id="pl.1.26"></a><var>1.26</var>is from the operations and maintenance <br/>
<a id="pl.1.27"></a><var>1.27</var>appropriation.<br/>
<a id="pl.2.1"></a><var>2.1</var>For fiscal years 2012 and 2013, the base for <br/>
<a id="pl.2.2"></a><var>2.2</var>operations and maintenance is $580,802,000 <br/>
<a id="pl.2.3"></a><var>2.3</var>$532,881,000 each year.<br/>
<a id="pl.2.4"></a><var>2.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.2.5"></a><var>2.5</var>    Sec. 2. Laws 2010, First Special Session chapter 1, article 5, section 5, is amended to <br/>
<a id="pl.2.6"></a><var>2.6</var>read:<br/>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.2.7"></a><var>2.7</var><br/>
<a id="pl.2.8"></a><var>2.8</var><br/>
</td>
<td colspan="3">Sec. 5. <b>BOARD OF REGENTS OF THE </b><br/>
<b>UNIVERSITY OF MINNESOTA</b><br/>
</td>
<td align="center"></td>
<td align="right"></td>
<td align="center"></td>
<td align="right"></td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.2.9"></a><var>2.9</var><br/>
</td>
<td colspan="3">Subdivision 1.<b>Total Appropriation</b><br/>
</td>
<td align="center"><b>$</b><br/>
</td>
<td align="right"><b>-0-</b><br/>
</td>
<td align="center"><b>$</b><br/>
</td>
<td align="right"><b>(50,000,000)</b><br/>
</td>
</tr>
</table><a id="pl.2.10"></a><var>2.10</var>The appropriation reductions for each <br/>
<a id="pl.2.11"></a><var>2.11</var>purpose are shown in the following <br/>
<a id="pl.2.12"></a><var>2.12</var>subdivisions.<br/>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.2.13"></a><var>2.13</var><br/>
</td>
<td colspan="3">Subd. 2.<b>Operations and Maintenance</b><br/>
</td>
<td align="center"></td>
<td align="right">-0-<br/>
</td>
<td align="center"></td>
<td align="right">(44,606,000)<br/>
</td>
</tr>
</table><a id="pl.2.14"></a><var>2.14</var>For fiscal years 2012 and 2013, the base for <br/>
<a id="pl.2.15"></a><var>2.15</var>operations and maintenance is $578,370,000 <br/>
<a id="pl.2.16"></a><var>2.16</var>$533,764,000 each year.<br/>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.2.17"></a><var>2.17</var><br/>
</td>
<td colspan="3">Subd. 3.<b>Special Appropriations</b><br/>
</td>
<td align="center"></td>
<td align="right"></td>
<td align="center"></td>
<td align="right"></td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.2.18"></a><var>2.18</var><br/>
</td>
<td colspan="3">(a) <b>Agriculture and Extension Service</b><br/>
</td>
<td align="center"></td>
<td align="right">-0-<br/>
</td>
<td align="center"></td>
<td align="right">(3,858,000)<br/>
</td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.2.19"></a><var>2.19</var><br/>
</td>
<td colspan="3">(b) <b>Health Sciences</b><br/>
</td>
<td align="center"></td>
<td align="right">-0-<br/>
</td>
<td align="center"></td>
<td align="right">(389,000)<br/>
</td>
</tr>
</table><a id="pl.2.20"></a><var>2.20</var>$26,000 of the 2011 reduction is from the St. <br/>
<a id="pl.2.21"></a><var>2.21</var>Cloud family practice residency program.<br/>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.2.22"></a><var>2.22</var><br/>
</td>
<td colspan="3">(c) <b>Institute of Technology</b><br/>
</td>
<td align="center"></td>
<td align="right">-0-<br/>
</td>
<td align="center"></td>
<td align="right">(102,000)<br/>
</td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.2.23"></a><var>2.23</var><br/>
</td>
<td colspan="3">(d) <b>System Special</b><br/>
</td>
<td align="center"></td>
<td align="right">-0-<br/>
</td>
<td align="center"></td>
<td align="right">(454,000)<br/>
</td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.2.24"></a><var>2.24</var><br/>
<a id="pl.2.25"></a><var>2.25</var><br/>
</td>
<td colspan="3">(e) <b>University of Minnesota and Mayo </b><br/>
<b>Foundation Partnership</b><br/>
</td>
<td align="center"></td>
<td align="right">-0-<br/>
</td>
<td align="center"></td>
<td align="right">(591,000)<br/>
</td>
</tr>
</table><a id="pl.2.26"></a><var>2.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.3.3"></a><var>3.3</var>    Section 1. Minnesota Statutes 2010, section 256B.766, is amended to read:<br/>
<a id="pl.3.4"></a><var>3.4</var><b>256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.</b><br/>
<a id="pl.3.5"></a><var>3.5</var>(a) Effective for services provided on or after July 1, 2009, total payments for basic <br/>
<a id="pl.3.6"></a><var>3.6</var>care services, shall be reduced by three percent, except that for the period July 1, 2009, <br/>
<a id="pl.3.7"></a><var>3.7</var>through June 30, 2011, total payments shall be reduced by 4.5 percent for the medical <br/>
<a id="pl.3.8"></a><var>3.8</var>assistance and general assistance medical care programs, prior to third-party liability and <br/>
<a id="pl.3.9"></a><var>3.9</var>spenddown calculation. Effective July 1, 2010, the commissioner shall classify physical <br/>
<a id="pl.3.10"></a><var>3.10</var>therapy services, occupational therapy services, and speech-language pathology and <br/>
<a id="pl.3.11"></a><var>3.11</var>related services as basic care services. The reduction in this paragraph shall apply to <br/>
<a id="pl.3.12"></a><var>3.12</var>physical therapy services, occupational therapy services, and speech-language pathology <br/>
<a id="pl.3.13"></a><var>3.13</var>and related services provided on or after July 1, 2010.<br/>
<a id="pl.3.14"></a><var>3.14</var>(b) Payments made to managed care plans and county-based purchasing plans shall <br/>
<a id="pl.3.15"></a><var>3.15</var>be reduced for services provided on or after October 1, 2009, to reflect the reduction <br/>
<a id="pl.3.16"></a><var>3.16</var>effective July 1, 2009, and payments made to the plans shall be reduced effective October <br/>
<a id="pl.3.17"></a><var>3.17</var>1, 2010, to reflect the reduction effective July 1, 2010.<br/>
<a id="pl.3.18"></a><var>3.18</var>(c) This section does not apply to physician and professional services, inpatient <br/>
<a id="pl.3.19"></a><var>3.19</var>hospital services, family planning services, mental health services, dental services, <br/>
<a id="pl.3.20"></a><var>3.20</var>prescription drugs, medical transportation, federally qualified health centers, rural health <br/>
<a id="pl.3.21"></a><var>3.21</var>centers, Indian health services, and Medicare cost-sharing.<br/>
<a id="pl.3.22"></a><var>3.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.2.0"></a><table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.3.23"></a><var>3.23</var><br/>
<a id="pl.3.24"></a><var>3.24</var><br/>
</td>
<td colspan="3">Sec. 2. <b>DEPARTMENT OF HUMAN </b><br/>
<b>SERVICES</b><br/>
</td>
<td align="center"></td>
<td align="right"></td>
<td align="center"></td>
<td align="right"></td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.3.25"></a><var>3.25</var><br/>
</td>
<td></td>
<td></td>
<td></td>
<td align="center" colspan="4"><b>APPROPRIATIONS</b><br/>
</td>
</tr>
<tr>
<td><a id="pl.3.26"></a><var>3.26</var><br/>
</td>
<td></td>
<td></td>
<td></td>
<td align="center" colspan="4"><b>Available for the Year</b><br/>
</td>
</tr>
<tr>
<td><a id="pl.3.27"></a><var>3.27</var><br/>
</td>
<td></td>
<td></td>
<td></td>
<td align="center" colspan="4"><b>Ending June 30</b><br/>
</td>
</tr>
<tr>
<td><a id="pl.3.28"></a><var>3.28</var><br/>
</td>
<td></td>
<td></td>
<td align="center"></td>
<td></td>
<td align="center"><b>2012</b><br/>
</td>
<td></td>
<td align="center"><b>2013</b><br/>
</td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.3.29"></a><var>3.29</var><br/>
</td>
<td colspan="3">Subdivision 1.<b>Total appropriation.</b><br/>
</td>
<td align="center"><b>$</b><br/>
</td>
<td align="right"><b>(19,659,000)</b><br/>
</td>
<td align="center"></td>
<td align="right"><b>(19,659,000)</b><br/>
</td>
</tr>
</table><a id="pl.3.30"></a><var>3.30</var>The appropriation reductions for each <br/>
<a id="pl.3.31"></a><var>3.31</var>purpose are shown in the following <br/>
<a id="pl.3.32"></a><var>3.32</var>subdivisions. The appropriation reductions <br/>
<a id="pl.3.33"></a><var>3.33</var>shown are to previously established general <br/>
<a id="pl.3.34"></a><var>3.34</var>fund bases for the following programs.<br/>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.4.1"></a><var>4.1</var><br/>
<a id="pl.4.2"></a><var>4.2</var><br/>
</td>
<td colspan="3">Subd. 2.<b>Children and Economic Assistance </b><br/>
<b>Grants</b><br/>
</td>
<td align="center"></td>
<td align="right"></td>
<td align="center"></td>
<td align="right"></td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.4.3"></a><var>4.3</var><br/>
</td>
<td colspan="3">(a) <b>Children and Community Services Grants</b><br/>
</td>
<td align="center"></td>
<td align="right">(13,659,000)<br/>
</td>
<td align="center"></td>
<td align="right">(13,659,000)<br/>
</td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.4.4"></a><var>4.4</var><br/>
</td>
<td colspan="3">(b) <b>General Assistance Grants</b><br/>
</td>
<td align="center"></td>
<td align="right">(5,267,000)<br/>
</td>
<td align="center"></td>
<td align="right">(5,267,000)<br/>
</td>
</tr>
</table><a id="pl.4.5"></a><var>4.5</var><b>Emergency General Assistance.</b> This <br/>
<a id="pl.4.6"></a><var>4.6</var>reduction is to reduce the general fund base <br/>
<a id="pl.4.7"></a><var>4.7</var>for emergency general assistance in fiscal <br/>
<a id="pl.4.8"></a><var>4.8</var>years 2012 and 2013.<br/>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.4.9"></a><var>4.9</var><br/>
</td>
<td colspan="3">(c) <b>Minnesota Supplemental Aid Grants</b><br/>
</td>
<td align="center"></td>
<td align="right">(733,000)<br/>
</td>
<td align="center"></td>
<td align="right">(733,000)<br/>
</td>
</tr>
</table><a id="pl.4.10"></a><var>4.10</var><b>Emergency Minnesota Supplemental Aid.</b> <br/>
<a id="pl.4.11"></a><var>4.11</var>This reduction is to reduce the general fund <br/>
<a id="pl.4.12"></a><var>4.12</var>base for emergency Minnesota supplemental <br/>
<a id="pl.4.13"></a><var>4.13</var>aid in fiscal years 2012 and 2013.<br/>
<a id="pl.4.14"></a><var>4.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.4.17"></a><var>4.17</var>    Section 1. <b>FISCAL YEAR 2011 REDUCTIONS.</b><br/>
<a id="pl.4.18"></a><var>4.18</var>(a) By March 31, 2011, the commissioner of management and budget must allocate <br/>
<a id="pl.4.19"></a><var>4.19</var>a reduction of $125,000,000 for the fiscal year ending June 30, 2011, to general fund <br/>
<a id="pl.4.20"></a><var>4.20</var>appropriations made to executive branch agencies as defined in Minnesota Statutes, <br/>
<a id="pl.4.21"></a><var>4.21</var>section 16A.011, subdivision 12a. Reductions in fiscal year 2011 appropriations cancel to <br/>
<a id="pl.4.22"></a><var>4.22</var>the general fund. Executive branch agencies must cooperate with the commissioner of <br/>
<a id="pl.4.23"></a><var>4.23</var>management and budget in developing and implementing these reductions.<br/>
<a id="pl.4.24"></a><var>4.24</var>(b) The commissioner may not reduce appropriations for:<br/>
<a id="pl.4.25"></a><var>4.25</var>(1) general education programs under Minnesota Statutes, section 126C.10, and <br/>
<a id="pl.4.26"></a><var>4.26</var>special education programs under Minnesota Statutes, sections 125A.76 and 125A.79;<br/>
<a id="pl.4.27"></a><var>4.27</var>(2) enlistment incentives provided by the adjutant general;<br/>
<a id="pl.4.28"></a><var>4.28</var>(3) the state soldiers' assistance program under Minnesota Statutes, section 197.03;<br/>
<a id="pl.4.29"></a><var>4.29</var>(4) the county veterans service office grant program under Minnesota Statutes, <br/>
<a id="pl.4.30"></a><var>4.30</var>section 197.608;<br/>
<a id="pl.4.31"></a><var>4.31</var>(5) the higher education grant program under Minnesota Statutes, section 136A.121;<br/>
<a id="pl.4.32"></a><var>4.32</var>(6) flood and tornado disaster relief in Laws 2010, Second Special Session chapter 1, <br/>
<a id="pl.4.33"></a><var>4.33</var>article 1, section 3, and article 2, section 3, for use by the commissioner of public safety;<br/>
<a id="pl.5.1"></a><var>5.1</var>(7) local government flood relief grants in Laws 2010, Second Special Session <br/>
<a id="pl.5.2"></a><var>5.2</var>chapter 1, article 1, section 5;<br/>
<a id="pl.5.3"></a><var>5.3</var>(8) the job skills partnership program under Minnesota Statutes, chapter 116L;<br/>
<a id="pl.5.4"></a><var>5.4</var>(9) the vocational rehabilitation program under Minnesota Statutes, chapter 268A; <br/>
<a id="pl.5.5"></a><var>5.5</var>and<br/>
<a id="pl.5.6"></a><var>5.6</var>(10) the facilities division of the Department of Corrections.<br/>
<a id="pl.5.7"></a><var>5.7</var>The commissioner may not further reduce appropriations to the Board of Trustees <br/>
<a id="pl.5.8"></a><var>5.8</var>of the Minnesota State Colleges and Universities or to the Board of Regents of the <br/>
<a id="pl.5.9"></a><var>5.9</var>University of Minnesota below the reduction in Laws 2010, First Special Session <br/>
<a id="pl.5.10"></a><var>5.10</var>chapter 1, article 5, sections 4 and 5. In allocating the reductions the commissioner <br/>
<a id="pl.5.11"></a><var>5.11</var>must consider appropriation amounts carried forward from fiscal 2010 into fiscal year <br/>
<a id="pl.5.12"></a><var>5.12</var>2011. The commissioner must report to the chairs and ranking minority members of the <br/>
<a id="pl.5.13"></a><var>5.13</var>senate Finance Committee and the house of representatives Ways and Means Committee <br/>
<a id="pl.5.14"></a><var>5.14</var>regarding the amount of reductions in spending by each agency and program under this <br/>
<a id="pl.5.15"></a><var>5.15</var>section.<br/>
<a id="pl.5.16"></a><var>5.16</var>(c) Reductions in this section apply to fiscal year 2011 only.<br/>
<a id="pl.5.17"></a><var>5.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.5.18"></a><var>5.18</var>    Sec. 2. <b>REDUCTIONS, LEGISLATURE, CONSTITUTIONAL OFFICERS.</b><br/>
<a id="pl.5.19"></a><var>5.19</var>    Subdivision 1. <b>Reductions.</b> Appropriations for fiscal year 2011 made in Laws 2009, <br/>
<a id="pl.5.20"></a><var>5.20</var>chapter 101, article 1, are reduced by the amount listed in this section. Reductions in <br/>
<a id="pl.5.21"></a><var>5.21</var>this section apply to fiscal year 2011 only.<br/>
<a id="pl.5.22"></a><var>5.22</var>    Subd. 2. <b>Senate.</b> $72,000.<br/>
<a id="pl.5.23"></a><var>5.23</var>    Subd. 3. <b>House of representatives.</b> $96,000.<br/>
<a id="pl.5.24"></a><var>5.24</var>    Subd. 4. <b>State auditor.</b> $41,000.<br/>
<a id="pl.5.25"></a><var>5.25</var>    Subd. 5. <b>Attorney general.</b> $500,000.<br/>
<a id="pl.5.26"></a><var>5.26</var>    Subd. 6. <b>Secretary of state.</b> $127,000.<br/>
<a id="pl.5.27"></a><var>5.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.5.30"></a><var>5.30</var>    Section 1. Minnesota Statutes 2010, section 270A.03, subdivision 7, is amended to <br/>
<a id="pl.5.31"></a><var>5.31</var>read:<br/>
<a id="pl.6.1"></a><var>6.1</var>    Subd. 7. <b>Refund.</b> "Refund" means an individual income tax refund or political <br/>
<a id="pl.6.2"></a><var>6.2</var>contribution refund, pursuant to chapter 290, or a property tax credit or refund, pursuant to <br/>
<a id="pl.6.3"></a><var>6.3</var>chapter 290A, or a sustainable forest tax payment to a claimant under chapter 290C.<br/>
<a id="pl.6.4"></a><var>6.4</var>For purposes of this chapter, lottery prizes, as set forth in section 
         <statute_ref>349A.08, <br/>
<a id="pl.6.5"></a><var>6.5</var>subdivision 8
         </statute_ref>, and amounts granted to persons by the legislature on the recommendation <br/>
<a id="pl.6.6"></a><var>6.6</var>of the joint senate-house of representatives Subcommittee on Claims shall be treated <br/>
<a id="pl.6.7"></a><var>6.7</var>as refunds.<br/>
<a id="pl.6.8"></a><var>6.8</var>In the case of a joint property tax refund payable to spouses under chapter 290A, <br/>
<a id="pl.6.9"></a><var>6.9</var>the refund shall be considered as belonging to each spouse in the proportion of the total <br/>
<a id="pl.6.10"></a><var>6.10</var>refund that equals each spouse's proportion of the total income determined under section <br/>
<statute_ref><a id="pl.6.11"></a><var>6.11</var>290A.03, subdivision 3
         </statute_ref>. In the case of a joint income tax refund under chapter 289A, the <br/>
<a id="pl.6.12"></a><var>6.12</var>refund shall be considered as belonging to each spouse in the proportion of the total <br/>
<a id="pl.6.13"></a><var>6.13</var>refund that equals each spouse's proportion of the total taxable income determined under <br/>
<a id="pl.6.14"></a><var>6.14</var>section 
         <statute_ref>290.01, subdivision 29</statute_ref>. The commissioner shall remit the entire refund to the <br/>
<a id="pl.6.15"></a><var>6.15</var>claimant agency, which shall, upon the request of the spouse who does not owe the debt, <br/>
<a id="pl.6.16"></a><var>6.16</var>determine the amount of the refund belonging to that spouse and refund the amount to <br/>
<a id="pl.6.17"></a><var>6.17</var>that spouse. For court fines, fees, and surcharges and court-ordered restitution under <br/>
<a id="pl.6.18"></a><var>6.18</var>section 
         <statute_ref>611A.04, subdivision 2</statute_ref>, the notice provided by the commissioner of revenue under <br/>
<a id="pl.6.19"></a><var>6.19</var>section 
         <statute_ref>270A.07, subdivision 2</statute_ref>, paragraph (b), serves as the appropriate legal notice <br/>
<a id="pl.6.20"></a><var>6.20</var>to the spouse who does not owe the debt.<br/>
<a id="pl.6.21"></a><var>6.21</var><b>EFFECTIVE DATE.</b>This section is effective for refund claims based on <br/>
<a id="pl.6.22"></a><var>6.22</var>contributions made after June 30, 2011.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.6.23"></a><var>6.23</var>    Sec. 2. Minnesota Statutes 2010, section 273.1384, subdivision 6, is amended to read:<br/>
<a id="pl.6.24"></a><var>6.24</var>    Subd. 6. <b>Credit reduction</b><b>; towns</b><b>.</b> In 2011 and each year thereafter, the market <br/>
<a id="pl.6.25"></a><var>6.25</var>value credit reimbursement amount for each taxing jurisdiction town determined under <br/>
<a id="pl.6.26"></a><var>6.26</var>this section is reduced by the dollar amount of the reduction in market value credit <br/>
<a id="pl.6.27"></a><var>6.27</var>reimbursements for that taxing jurisdiction town in 2010 due to the reductions under <br/>
<a id="pl.6.28"></a><var>6.28</var>section 
         <statute_ref>477A.0133</statute_ref>. No taxing jurisdiction's town's market value credit reimbursements <br/>
<a id="pl.6.29"></a><var>6.29</var>are reduced to less than zero under this subdivision. The commissioner of revenue shall <br/>
<a id="pl.6.30"></a><var>6.30</var>pay the annual market value credit reimbursement amounts, after reduction under this <br/>
<a id="pl.6.31"></a><var>6.31</var>subdivision, to the affected taxing jurisdictions towns as provided in this section.<br/>
<a id="pl.6.32"></a><var>6.32</var><b>EFFECTIVE DATE.</b>This section is effective for credit reimbursements in 2011 <br/>
<a id="pl.6.33"></a><var>6.33</var>and thereafter.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.7.1"></a><var>7.1</var>    Sec. 3. Minnesota Statutes 2010, section 273.1384, is amended by adding a subdivision <br/>
<a id="pl.7.2"></a><var>7.2</var>to read:<br/>
<a id="pl.7.3"></a><var>7.3</var>    Subd. 7. <b>Credit reductions and limitation; counties and cities.</b> (a) In 2011 and <br/>
<a id="pl.7.4"></a><var>7.4</var>2012, the market value credit reimbursement payment to each county and city authorized <br/>
<a id="pl.7.5"></a><var>7.5</var>under subdivision 4 may not exceed the reimbursement payment received by the county <br/>
<a id="pl.7.6"></a><var>7.6</var>or city for taxes payable in 2010.<br/>
<a id="pl.7.7"></a><var>7.7</var>(b) In 2013 and each year thereafter, the market value credit reimbursement amount <br/>
<a id="pl.7.8"></a><var>7.8</var>for each city and county determined under this section is reduced by the dollar amount of <br/>
<a id="pl.7.9"></a><var>7.9</var>the reduction in market value credit reimbursements for that city or county in 2010 due <br/>
<a id="pl.7.10"></a><var>7.10</var>to the reductions under sections 477A.0133 and 477A.0134. No taxing jurisdiction's <br/>
<a id="pl.7.11"></a><var>7.11</var>market value credit reimbursements are reduced to less than zero under this subdivision. <br/>
<a id="pl.7.12"></a><var>7.12</var>The commissioner of revenue shall pay the annual market value credit reimbursement <br/>
<a id="pl.7.13"></a><var>7.13</var>amounts, after reduction under this subdivision, to the affected city or county as provided <br/>
<a id="pl.7.14"></a><var>7.14</var>in this section.<br/>
<a id="pl.7.15"></a><var>7.15</var><b>EFFECTIVE DATE.</b>This section is effective for credit reimbursements in 2011 <br/>
<a id="pl.7.16"></a><var>7.16</var>and thereafter.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.7.17"></a><var>7.17</var>    Sec. 4. Minnesota Statutes 2010, section 289A.50, subdivision 1, is amended to read:<br/>
<a id="pl.7.18"></a><var>7.18</var>    Subdivision 1. <b>General right to refund.</b> (a) Subject to the requirements of this <br/>
<a id="pl.7.19"></a><var>7.19</var>section and section 
         <statute_ref>289A.40</statute_ref>, a taxpayer who has paid a tax in excess of the taxes lawfully <br/>
<a id="pl.7.20"></a><var>7.20</var>due and who files a written claim for refund will be refunded or credited the overpayment <br/>
<a id="pl.7.21"></a><var>7.21</var>of the tax determined by the commissioner to be erroneously paid.<br/>
<a id="pl.7.22"></a><var>7.22</var>(b) The claim must specify the name of the taxpayer, the date when and the period <br/>
<a id="pl.7.23"></a><var>7.23</var>for which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer <br/>
<a id="pl.7.24"></a><var>7.24</var>claims was erroneously paid, the grounds on which a refund is claimed, and other <br/>
<a id="pl.7.25"></a><var>7.25</var>information relative to the payment and in the form required by the commissioner. An <br/>
<a id="pl.7.26"></a><var>7.26</var>income tax, estate tax, or corporate franchise tax return, or amended return claiming an <br/>
<a id="pl.7.27"></a><var>7.27</var>overpayment constitutes a claim for refund.<br/>
<a id="pl.7.28"></a><var>7.28</var>(c) When, in the course of an examination, and within the time for requesting a <br/>
<a id="pl.7.29"></a><var>7.29</var>refund, the commissioner determines that there has been an overpayment of tax, the <br/>
<a id="pl.7.30"></a><var>7.30</var>commissioner shall refund or credit the overpayment to the taxpayer and no demand <br/>
<a id="pl.7.31"></a><var>7.31</var>is necessary. If the overpayment exceeds $1, the amount of the overpayment must <br/>
<a id="pl.7.32"></a><var>7.32</var>be refunded to the taxpayer. If the amount of the overpayment is less than $1, the <br/>
<a id="pl.7.33"></a><var>7.33</var>commissioner is not required to refund. In these situations, the commissioner does not <br/>
<a id="pl.7.34"></a><var>7.34</var>have to make written findings or serve notice by mail to the taxpayer.<br/>
<a id="pl.8.1"></a><var>8.1</var>(d) If the amount allowable as a credit for withholding, estimated taxes, or dependent <br/>
<a id="pl.8.2"></a><var>8.2</var>care exceeds the tax against which the credit is allowable, the amount of the excess is <br/>
<a id="pl.8.3"></a><var>8.3</var>considered an overpayment. The refund allowed by section 
<statute_ref>290.06, subdivision 23</statute_ref>, is also <br/>
<a id="pl.8.4"></a><var>8.4</var>considered an overpayment. The requirements of section 
         <statute_ref>270C.33</statute_ref> do not apply to the <br/>
<a id="pl.8.5"></a><var>8.5</var>refunding of such an overpayment shown on the original return filed by a taxpayer.<br/>
<a id="pl.8.6"></a><var>8.6</var>(e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes, <br/>
<a id="pl.8.7"></a><var>8.7</var>penalties, and interest reported in the return of the entertainment entity or imposed by <br/>
<a id="pl.8.8"></a><var>8.8</var>section 
         <statute_ref>290.9201</statute_ref>, the excess must be refunded to the entertainment entity. If the excess is <br/>
<a id="pl.8.9"></a><var>8.9</var>less than $1, the commissioner need not refund that amount.<br/>
<a id="pl.8.10"></a><var>8.10</var>(f) If the surety deposit required for a construction contract exceeds the liability of <br/>
<a id="pl.8.11"></a><var>8.11</var>the out-of-state contractor, the commissioner shall refund the difference to the contractor.<br/>
<a id="pl.8.12"></a><var>8.12</var>(g) An action of the commissioner in refunding the amount of the overpayment does <br/>
<a id="pl.8.13"></a><var>8.13</var>not constitute a determination of the correctness of the return of the taxpayer.<br/>
<a id="pl.8.14"></a><var>8.14</var>(h) There is appropriated from the general fund to the commissioner of revenue the <br/>
<a id="pl.8.15"></a><var>8.15</var>amount necessary to pay refunds allowed under this section.<br/>
<a id="pl.8.16"></a><var>8.16</var><b>EFFECTIVE DATE.</b>This section is effective for refund claims based on <br/>
<a id="pl.8.17"></a><var>8.17</var>contributions made after June 30, 2011.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.8.18"></a><var>8.18</var>    Sec. 5. Minnesota Statutes 2010, section 290.01, subdivision 6, is amended to read:<br/>
<a id="pl.8.19"></a><var>8.19</var>    Subd. 6. <b>Taxpayer.</b> The term "taxpayer" means any person or corporation subject to <br/>
<a id="pl.8.20"></a><var>8.20</var>a tax imposed by this chapter. For purposes of section 
<statute_ref>290.06, subdivision 23</statute_ref>, the term <br/>
<a id="pl.8.21"></a><var>8.21</var>"taxpayer" means an individual eligible to vote in Minnesota under section 
<statute_ref>201.014</statute_ref>.<br/>
<a id="pl.8.22"></a><var>8.22</var><b>EFFECTIVE DATE.</b>This section is effective for refund claims based on <br/>
<a id="pl.8.23"></a><var>8.23</var>contributions made after June 30, 2011.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.8.24"></a><var>8.24</var>    Sec. 6. Minnesota Statutes 2010, section 290A.03, subdivision 11, is amended to read:<br/>
<a id="pl.8.25"></a><var>8.25</var>    Subd. 11. <b>Rent constituting property taxes.</b> "Rent constituting property taxes" <br/>
<a id="pl.8.26"></a><var>8.26</var>means 19 15 percent of the gross rent actually paid in cash, or its equivalent, or the portion <br/>
<a id="pl.8.27"></a><var>8.27</var>of rent paid in lieu of property taxes, in any calendar year by a claimant for the right <br/>
<a id="pl.8.28"></a><var>8.28</var>of occupancy of the claimant's Minnesota homestead in the calendar year, and which <br/>
<a id="pl.8.29"></a><var>8.29</var>rent constitutes the basis, in the succeeding calendar year of a claim for relief under this <br/>
<a id="pl.8.30"></a><var>8.30</var>chapter by the claimant.<br/>
<a id="pl.8.31"></a><var>8.31</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on rent paid in <br/>
<a id="pl.8.32"></a><var>8.32</var>2010 and following years.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.9.1"></a><var>9.1</var>    Sec. 7. Minnesota Statutes 2010, section 290A.03, subdivision 13, is amended to read:<br/>
<a id="pl.9.2"></a><var>9.2</var>    Subd. 13. <b>Property taxes payable.</b> "Property taxes payable" means the property tax <br/>
<a id="pl.9.3"></a><var>9.3</var>exclusive of special assessments, penalties, and interest payable on a claimant's homestead <br/>
<a id="pl.9.4"></a><var>9.4</var>after deductions made under sections 
         <statute_ref>273.135</statute_ref>, 
         <statute_ref>273.1384</statute_ref>, 
         <statute_ref>273.1391</statute_ref>, 
         <statute_ref>273.42, subdivision 2</statute_ref>, <br/>
<a id="pl.9.5"></a><var>9.5</var>and any other state paid property tax credits in any calendar year, and after any refund <br/>
<a id="pl.9.6"></a><var>9.6</var>claimed and allowable under section 
         <statute_ref>290A.04, subdivision 2h</statute_ref>, that is first payable in <br/>
<a id="pl.9.7"></a><var>9.7</var>the year that the property tax is payable. In the case of a claimant who makes ground <br/>
<a id="pl.9.8"></a><var>9.8</var>lease payments, "property taxes payable" includes the amount of the payments directly <br/>
<a id="pl.9.9"></a><var>9.9</var>attributable to the property taxes assessed against the parcel on which the house is located. <br/>
<a id="pl.9.10"></a><var>9.10</var>No apportionment or reduction of the "property taxes payable" shall be required for the <br/>
<a id="pl.9.11"></a><var>9.11</var>use of a portion of the claimant's homestead for a business purpose if the claimant does not <br/>
<a id="pl.9.12"></a><var>9.12</var>deduct any business depreciation expenses for the use of a portion of the homestead in the <br/>
<a id="pl.9.13"></a><var>9.13</var>determination of federal adjusted gross income. For homesteads which are manufactured <br/>
<a id="pl.9.14"></a><var>9.14</var>homes as defined in section 
         <statute_ref>273.125, subdivision 8</statute_ref>, and for homesteads which are park <br/>
<a id="pl.9.15"></a><var>9.15</var>trailers taxed as manufactured homes under section 
         <statute_ref>168.012, subdivision 9</statute_ref>, "property <br/>
<a id="pl.9.16"></a><var>9.16</var>taxes payable" shall also include 19 15 percent of the gross rent paid in the preceding <br/>
<a id="pl.9.17"></a><var>9.17</var>year for the site on which the homestead is located. When a homestead is owned by <br/>
<a id="pl.9.18"></a><var>9.18</var>two or more persons as joint tenants or tenants in common, such tenants shall determine <br/>
<a id="pl.9.19"></a><var>9.19</var>between them which tenant may claim the property taxes payable on the homestead. If <br/>
<a id="pl.9.20"></a><var>9.20</var>they are unable to agree, the matter shall be referred to the commissioner of revenue <br/>
<a id="pl.9.21"></a><var>9.21</var>whose decision shall be final. Property taxes are considered payable in the year prescribed <br/>
<a id="pl.9.22"></a><var>9.22</var>by law for payment of the taxes.<br/>
<a id="pl.9.23"></a><var>9.23</var>In the case of a claim relating to "property taxes payable," the claimant must have <br/>
<a id="pl.9.24"></a><var>9.24</var>owned and occupied the homestead on January 2 of the year in which the tax is payable <br/>
<a id="pl.9.25"></a><var>9.25</var>and (i) the property must have been classified as homestead property pursuant to section <br/>
<statute_ref><a id="pl.9.26"></a><var>9.26</var>273.124
         </statute_ref>, on or before December 15 of the assessment year to which the "property taxes <br/>
<a id="pl.9.27"></a><var>9.27</var>payable" relate; or (ii) the claimant must provide documentation from the local assessor <br/>
<a id="pl.9.28"></a><var>9.28</var>that application for homestead classification has been made on or before December 15 <br/>
<a id="pl.9.29"></a><var>9.29</var>of the year in which the "property taxes payable" were payable and that the assessor has <br/>
<a id="pl.9.30"></a><var>9.30</var>approved the application.<br/>
<a id="pl.9.31"></a><var>9.31</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on rent paid in <br/>
<a id="pl.9.32"></a><var>9.32</var>2010 and following years.<br/>
<br/>
<a id="bill.4.8.0"></a><a id="pl.9.33"></a><var>9.33</var>    Sec. 8. Minnesota Statutes 2010, section 290C.07, is amended to read:<br/>
<a id="pl.9.34"></a><var>9.34</var><b>290C.07 CALCULATION OF INCENTIVE PAYMENT.</b><br/>
<a id="pl.10.1"></a><var>10.1</var>    (a) An approved claimant under the sustainable forest incentive program is eligible <br/>
<a id="pl.10.2"></a><var>10.2</var>to receive an annual payment. Subject to the limitation contained in paragraph (b), the <br/>
<a id="pl.10.3"></a><var>10.3</var>payment shall equal the greater of:<br/>
<a id="pl.10.4"></a><var>10.4</var>    (1) the difference between the property tax that would be paid on the land using the <br/>
<a id="pl.10.5"></a><var>10.5</var>previous year's statewide average total township tax rate and a class rate of one percent, if <br/>
<a id="pl.10.6"></a><var>10.6</var>the land were valued at (i) the average statewide managed forest land market value per <br/>
<a id="pl.10.7"></a><var>10.7</var>acre calculated under section 
<statute_ref>290C.06</statute_ref>, and (ii) the average statewide managed forest land <br/>
<a id="pl.10.8"></a><var>10.8</var>current use value per acre calculated under section 
<statute_ref>290C.02, subdivision 5</statute_ref>; or<br/>
<a id="pl.10.9"></a><var>10.9</var>    (2) two-thirds of the property tax amount determined by using the previous year's <br/>
<a id="pl.10.10"></a><var>10.10</var>statewide average total township tax rate, the estimated market value per acre as calculated <br/>
<a id="pl.10.11"></a><var>10.11</var>in section 
<statute_ref>290C.06</statute_ref>, and a class rate of one percent, provided that the payment shall be <br/>
<a id="pl.10.12"></a><var>10.12</var>no less than $7 $7.75 per acre for each acre enrolled in the sustainable forest incentive <br/>
<a id="pl.10.13"></a><var>10.13</var>program.<br/>
<a id="pl.10.14"></a><var>10.14</var>(b) The annual payment under this section per each Social Security number or state <br/>
<a id="pl.10.15"></a><var>10.15</var>or federal business tax identification number must not exceed $100,000.<br/>
<a id="pl.10.16"></a><var>10.16</var><b>EFFECTIVE DATE.</b>This section is effective for payments in calendar year 2011 <br/>
<a id="pl.10.17"></a><var>10.17</var>and thereafter.<br/>
<br/>
<a id="bill.4.9.0"></a><a id="pl.10.18"></a><var>10.18</var>    Sec. 9. Minnesota Statutes 2010, section 477A.0124, is amended by adding a <br/>
<a id="pl.10.19"></a><var>10.19</var>subdivision to read:<br/>
<a id="pl.10.20"></a><var>10.20</var>    Subd. 6. <b>Aid payments in 2011 and 2012.</b> Notwithstanding total aids calculated or <br/>
<a id="pl.10.21"></a><var>10.21</var>certified for 2011 under subdivisions 3, 4, and 5, for 2011 and 2012, each county shall <br/>
<a id="pl.10.22"></a><var>10.22</var>receive an aid distribution under this section equal to the lesser of (1) the total amount of <br/>
<a id="pl.10.23"></a><var>10.23</var>aid it received under this section in 2010 after the reductions under sections 477A.0133 <br/>
<a id="pl.10.24"></a><var>10.24</var>and 477A.0134, or (2) the total amount the county is certified to receive in 2011 under <br/>
<a id="pl.10.25"></a><var>10.25</var>subdivisions 3 to 5.<br/>
<a id="pl.10.26"></a><var>10.26</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar years <br/>
<a id="pl.10.27"></a><var>10.27</var>2011 and 2012.<br/>
<br/>
<a id="bill.4.10.0"></a><a id="pl.10.28"></a><var>10.28</var>    Sec. 10. Minnesota Statutes 2010, section 477A.013, subdivision 9, is amended to read:<br/>
<a id="pl.10.29"></a><var>10.29</var>    Subd. 9. <b>City aid distribution.</b> (a) In calendar year 2009 and thereafter, each <br/>
<a id="pl.10.30"></a><var>10.30</var>city shall receive an aid distribution equal to the sum of (1) the city formula aid under <br/>
<a id="pl.10.31"></a><var>10.31</var>subdivision 8, and (2) its city aid base.<br/>
<a id="pl.10.32"></a><var>10.32</var>    (b) For aids payable in 2011 2013 only, the total aid in the previous year for any <br/>
<a id="pl.10.33"></a><var>10.33</var>city shall mean the amount of aid it was certified to receive for aids payable in 2010 2012 <br/>
<a id="pl.11.1"></a><var>11.1</var>under this section minus the amount of its aid reduction under section
<statute_ref>477A.0134</statute_ref>. For aids <br/>
<a id="pl.11.2"></a><var>11.2</var>payable in 2012 2014 and thereafter, the total aid in the previous year for any city means <br/>
<a id="pl.11.3"></a><var>11.3</var>the amount of aid it was certified to receive under this section in the previous payable year.<br/>
<a id="pl.11.4"></a><var>11.4</var>    (c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed <br/>
<a id="pl.11.5"></a><var>11.5</var>the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution <br/>
<a id="pl.11.6"></a><var>11.6</var>plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total <br/>
<a id="pl.11.7"></a><var>11.7</var>aid for any city with a population of 2,500 or more may not be less than its total aid under <br/>
<a id="pl.11.8"></a><var>11.8</var>this section in the previous year minus the lesser of $10 multiplied by its population, or ten <br/>
<a id="pl.11.9"></a><var>11.9</var>percent of its net levy in the year prior to the aid distribution.<br/>
<a id="pl.11.10"></a><var>11.10</var>    (d) For aids payable in 2010 and thereafter, the total aid for a city with a population <br/>
<a id="pl.11.11"></a><var>11.11</var>less than 2,500 must not be less than the amount it was certified to receive in the <br/>
<a id="pl.11.12"></a><var>11.12</var>previous year minus the lesser of $10 multiplied by its population, or five percent of its <br/>
<a id="pl.11.13"></a><var>11.13</var>2003 certified aid amount. For aids payable in 2009 only, the total aid for a city with a <br/>
<a id="pl.11.14"></a><var>11.14</var>population less than 2,500 must not be less than what it received under this section in the <br/>
<a id="pl.11.15"></a><var>11.15</var>previous year unless its total aid in calendar year 2008 was aid under section 
         <statute_ref>477A.011</statute_ref>, <br/>
<a id="pl.11.16"></a><var>11.16</var>subdivision 36, paragraph (s), in which case its minimum aid is zero.<br/>
<a id="pl.11.17"></a><var>11.17</var>    (e) A city's aid loss under this section may not exceed $300,000 in any year in <br/>
<a id="pl.11.18"></a><var>11.18</var>which the total city aid appropriation under section 
         <statute_ref>477A.03, subdivision 2a</statute_ref>, is equal or <br/>
<a id="pl.11.19"></a><var>11.19</var>greater than the appropriation under that subdivision in the previous year, unless the <br/>
<a id="pl.11.20"></a><var>11.20</var>city has an adjustment in its city net tax capacity under the process described in section <br/>
<statute_ref><a id="pl.11.21"></a><var>11.21</var>469.174, subdivision 28
         </statute_ref>.<br/>
<a id="pl.11.22"></a><var>11.22</var>    (f) If a city's net tax capacity used in calculating aid under this section has decreased <br/>
<a id="pl.11.23"></a><var>11.23</var>in any year by more than 25 percent from its net tax capacity in the previous year due to <br/>
<a id="pl.11.24"></a><var>11.24</var>property becoming tax-exempt Indian land, the city's maximum allowed aid increase <br/>
<a id="pl.11.25"></a><var>11.25</var>under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the <br/>
<a id="pl.11.26"></a><var>11.26</var>year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease <br/>
<a id="pl.11.27"></a><var>11.27</var>resulting from the property becoming tax exempt.<br/>
<a id="pl.11.28"></a><var>11.28</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.11.29"></a><var>11.29</var>2012 and thereafter.<br/>
<br/>
<a id="bill.4.11.0"></a><a id="pl.11.30"></a><var>11.30</var>    Sec. 11. Minnesota Statutes 2010, section 477A.013, is amended by adding a <br/>
<a id="pl.11.31"></a><var>11.31</var>subdivision to read:<br/>
<a id="pl.11.32"></a><var>11.32</var>    Subd. 11. <b>Aid payments in 2011 and 2012.</b> Notwithstanding aids calculated or <br/>
<a id="pl.11.33"></a><var>11.33</var>certified for 2011 under subdivision 9, for 2011 and 2012, each city shall receive an aid <br/>
<a id="pl.11.34"></a><var>11.34</var>distribution under this section equal to the lesser of (1) the total amount of aid it received <br/>
<a id="pl.11.35"></a><var>11.35</var>under this section in 2010 after the reductions under sections 477A.0133 and 477A.0134, <br/>
<a id="pl.12.1"></a><var>12.1</var>and reduced by the amount of payments made under section 477A.011, subdivision 36, <br/>
<a id="pl.12.2"></a><var>12.2</var>paragraphs (y) and (z), and, for 2011 only, increased by the aid base adjustment under <br/>
<a id="pl.12.3"></a><var>12.3</var>section 477A.011, subdivision 36, paragraph (aa), or (2) the amount it was certified to <br/>
<a id="pl.12.4"></a><var>12.4</var>receive in 2011 under subdivision 9.<br/>
<a id="pl.12.5"></a><var>12.5</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar years <br/>
<a id="pl.12.6"></a><var>12.6</var>2011 and 2012.<br/>
<br/>
<a id="bill.4.12.0"></a><a id="pl.12.7"></a><var>12.7</var>    Sec. 12. Minnesota Statutes 2010, section 477A.03, is amended to read:<br/>
<a id="pl.12.8"></a><var>12.8</var><b>477A.03 APPROPRIATION.</b><br/>
<a id="pl.12.9"></a><var>12.9</var>    Subd. 2. <b>Annual appropriation.</b> A sum sufficient to discharge the duties imposed <br/>
<a id="pl.12.10"></a><var>12.10</var>by sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.014</statute_ref> is annually appropriated from the general fund to the <br/>
<a id="pl.12.11"></a><var>12.11</var>commissioner of revenue.<br/>
<a id="pl.12.12"></a><var>12.12</var>    Subd. 2a. <b>Cities.</b> For aids payable in 2011 2013 and thereafter, the total aid paid <br/>
<a id="pl.12.13"></a><var>12.13</var>under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is $527,100,646 $426,438,012.<br/>
<a id="pl.12.14"></a><var>12.14</var>    Subd. 2b. <b>Counties.</b> (a) For aids payable in 2011 2013 and thereafter, the total aid <br/>
<a id="pl.12.15"></a><var>12.15</var>payable under section 
         <statute_ref>477A.0124, subdivision 3</statute_ref>, is $96,395,000 $80,795,000. Each <br/>
<a id="pl.12.16"></a><var>12.16</var>calendar year, $500,000 shall be retained by the commissioner of revenue to make <br/>
<a id="pl.12.17"></a><var>12.17</var>reimbursements to the commissioner of management and budget for payments made <br/>
<a id="pl.12.18"></a><var>12.18</var>under section 
         <statute_ref>611.27</statute_ref>. For calendar year 2004, the amount shall be in addition to the <br/>
<a id="pl.12.19"></a><var>12.19</var>payments authorized under section 
         <statute_ref>477A.0124, subdivision 1</statute_ref>. For calendar year 2005 <br/>
<a id="pl.12.20"></a><var>12.20</var>and subsequent years, the amount shall be deducted from the appropriation under <br/>
<a id="pl.12.21"></a><var>12.21</var>this paragraph. The reimbursements shall be to defray the additional costs associated <br/>
<a id="pl.12.22"></a><var>12.22</var>with court-ordered counsel under section 
         <statute_ref>611.27</statute_ref>. Any retained amounts not used for <br/>
<a id="pl.12.23"></a><var>12.23</var>reimbursement in a year shall be included in the next distribution of county need aid <br/>
<a id="pl.12.24"></a><var>12.24</var>that is certified to the county auditors for the purpose of property tax reduction for the <br/>
<a id="pl.12.25"></a><var>12.25</var>next taxes payable year.<br/>
<a id="pl.12.26"></a><var>12.26</var>    (b) For aids payable in 2011 2013 and thereafter, the total aid under section <br/>
<statute_ref><a id="pl.12.27"></a><var>12.27</var>477A.0124, subdivision 4
         </statute_ref>, is $101,309,575 $84,909,575. The commissioner of <br/>
<a id="pl.12.28"></a><var>12.28</var>management and budget shall bill the commissioner of revenue for the cost of preparation <br/>
<a id="pl.12.29"></a><var>12.29</var>of local impact notes as required by section 
         <statute_ref>3.987</statute_ref>, not to exceed $207,000 in fiscal year <br/>
<a id="pl.12.30"></a><var>12.30</var>2004 and thereafter. The commissioner of education shall bill the commissioner of <br/>
<a id="pl.12.31"></a><var>12.31</var>revenue for the cost of preparation of local impact notes for school districts as required by <br/>
<a id="pl.12.32"></a><var>12.32</var>section 
         <statute_ref>3.987</statute_ref>, not to exceed $7,000 in fiscal year 2004 and thereafter. The commissioner <br/>
<a id="pl.12.33"></a><var>12.33</var>of revenue shall deduct the amounts billed under this paragraph from the appropriation <br/>
<a id="pl.12.34"></a><var>12.34</var>under this paragraph. The amounts deducted are appropriated to the commissioner of <br/>
<a id="pl.13.1"></a><var>13.1</var>management and budget and the commissioner of education for the preparation of local <br/>
<a id="pl.13.2"></a><var>13.2</var>impact notes.<br/>
<a id="pl.13.3"></a><var>13.3</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.13.4"></a><var>13.4</var>2012 and thereafter.<br/>
<br/>
<a id="bill.4.13.0"></a><a id="pl.13.5"></a><var>13.5</var>    Sec. 13. <b>ADMINISTRATION OF PROPERTY TAX REFUND CLAIMS; 2011.</b><br/>
<a id="pl.13.6"></a><var>13.6</var>In administering sections 6 and 7 for claims for refunds submitted using 19 percent <br/>
<a id="pl.13.7"></a><var>13.7</var>of gross rent as rent constituting property taxes under prior law, the commissioner shall <br/>
<a id="pl.13.8"></a><var>13.8</var>recalculate and pay the refund amounts using 15 percent of gross rent. The commissioner <br/>
<a id="pl.13.9"></a><var>13.9</var>shall notify the claimant that the recalculation was mandated by action of the 2011 <br/>
<a id="pl.13.10"></a><var>13.10</var>legislature.<br/>
<a id="pl.13.11"></a><var>13.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.14.0"></a><a id="pl.13.12"></a><var>13.12</var>    Sec. 14. <b> REPEALER.</b><br/>
<a id="pl.13.13"></a><var>13.13</var>(a) Minnesota Statutes 2010, sections 10A.322, subdivision 4; and 13.4967, <br/>
<a id="pl.13.14"></a><var>13.14</var>subdivision 2, are repealed.<br/>
<a id="pl.13.15"></a><var>13.15</var>(b) Minnesota Statutes 2010, section 290.06, subdivision 23, is repealed.<br/>
<a id="pl.13.16"></a><var>13.16</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective the day following final enactment. <br/>
<a id="pl.13.17"></a><var>13.17</var>Paragraph (b) is effective for refund claims based on contributions made after June 30, <br/>
<a id="pl.13.18"></a><var>13.18</var>2011.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="bill.5.1.0"></a><a id="pl.13.21"></a><var>13.21</var>    Section 1. Minnesota Statutes 2010, section 289A.02, subdivision 7, is amended to <br/>
<a id="pl.13.22"></a><var>13.22</var>read:<br/>
<a id="pl.13.23"></a><var>13.23</var>    Subd. 7. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br/>
<a id="pl.13.24"></a><var>13.24</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through March 18, <br/>
<a id="pl.13.25"></a><var>13.25</var>2010 September 27, 2010.<br/>
<a id="pl.13.26"></a><var>13.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.13.27"></a><var>13.27</var>    Sec. 2. Minnesota Statutes 2010, section 290.01, subdivision 19, is amended to read:<br/>
<a id="pl.13.28"></a><var>13.28</var>    Subd. 19. <b>Net income.</b> The term "net income" means the federal taxable income, <br/>
<a id="pl.13.29"></a><var>13.29</var>as defined in section 63 of the Internal Revenue Code of 1986, as amended through the <br/>
<a id="pl.13.30"></a><var>13.30</var>date named in this subdivision, incorporating the federal effective dates of changes to the <br/>
<a id="pl.14.1"></a><var>14.1</var>Internal Revenue Code and any elections made by the taxpayer in accordance with the <br/>
<a id="pl.14.2"></a><var>14.2</var>Internal Revenue Code in determining federal taxable income for federal income tax <br/>
<a id="pl.14.3"></a><var>14.3</var>purposes, and with the modifications provided in subdivisions 19a to 19f.<br/>
<a id="pl.14.4"></a><var>14.4</var>    In the case of a regulated investment company or a fund thereof, as defined in section <br/>
<a id="pl.14.5"></a><var>14.5</var>851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment <br/>
<a id="pl.14.6"></a><var>14.6</var>company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, <br/>
<a id="pl.14.7"></a><var>14.7</var>except that:<br/>
<a id="pl.14.8"></a><var>14.8</var>    (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal <br/>
<a id="pl.14.9"></a><var>14.9</var>Revenue Code does not apply;<br/>
<a id="pl.14.10"></a><var>14.10</var>    (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal <br/>
<a id="pl.14.11"></a><var>14.11</var>Revenue Code must be applied by allowing a deduction for capital gain dividends and <br/>
<a id="pl.14.12"></a><var>14.12</var>exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal <br/>
<a id="pl.14.13"></a><var>14.13</var>Revenue Code; and<br/>
<a id="pl.14.14"></a><var>14.14</var>    (3) the deduction for dividends paid must also be applied in the amount of any <br/>
<a id="pl.14.15"></a><var>14.15</var>undistributed capital gains which the regulated investment company elects to have treated <br/>
<a id="pl.14.16"></a><var>14.16</var>as provided in section 852(b)(3)(D) of the Internal Revenue Code.<br/>
<a id="pl.14.17"></a><var>14.17</var>    The net income of a real estate investment trust as defined and limited by section <br/>
<a id="pl.14.18"></a><var>14.18</var>856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust <br/>
<a id="pl.14.19"></a><var>14.19</var>taxable income as defined in section 857(b)(2) of the Internal Revenue Code.<br/>
<a id="pl.14.20"></a><var>14.20</var>    The net income of a designated settlement fund as defined in section 468B(d) of <br/>
<a id="pl.14.21"></a><var>14.21</var>the Internal Revenue Code means the gross income as defined in section 468B(b) of the <br/>
<a id="pl.14.22"></a><var>14.22</var>Internal Revenue Code.<br/>
<a id="pl.14.23"></a><var>14.23</var>    The Internal Revenue Code of 1986, as amended through March 18, 2010 September <br/>
<a id="pl.14.24"></a><var>14.24</var>27, 2010, shall be in effect for taxable years beginning after December 31, 1996. The <br/>
<a id="pl.14.25"></a><var>14.25</var>provisions of the act of January 22, 2010, Public Law 111-126, to accelerate the benefits <br/>
<a id="pl.14.26"></a><var>14.26</var>for charitable cash contributions for the relief of victims of the Haitian earthquake, are <br/>
<a id="pl.14.27"></a><var>14.27</var>effective at the same time it became effective for federal purposes and apply to the <br/>
<a id="pl.14.28"></a><var>14.28</var>subtraction under subdivision 19b, clause (6).<br/>
<a id="pl.14.29"></a><var>14.29</var>    Except as otherwise provided, references to the Internal Revenue Code in <br/>
<a id="pl.14.30"></a><var>14.30</var>subdivisions 19 to 19f mean the code in effect for purposes of determining net income <br/>
<a id="pl.14.31"></a><var>14.31</var>for the applicable year. For taxable years beginning after December 31, 2009, and before <br/>
<a id="pl.14.32"></a><var>14.32</var>January 1, 2011, the provisions of the act of December 17, 2010, Public Law 111-312, are <br/>
<a id="pl.14.33"></a><var>14.33</var>effective at the same time they became effective for federal purposes.<br/>
<a id="pl.14.34"></a><var>14.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.14.35"></a><var>14.35</var>    Sec. 3. Minnesota Statutes 2010, section 290.01, subdivision 19a, is amended to read:<br/>
<a id="pl.15.1"></a><var>15.1</var>    Subd. 19a. <b>Additions to federal taxable income.</b> For individuals, estates, and <br/>
<a id="pl.15.2"></a><var>15.2</var>trusts, there shall be added to federal taxable income:<br/>
<a id="pl.15.3"></a><var>15.3</var>    (1)(i) interest income on obligations of any state other than Minnesota or a political <br/>
<a id="pl.15.4"></a><var>15.4</var>or governmental subdivision, municipality, or governmental agency or instrumentality <br/>
<a id="pl.15.5"></a><var>15.5</var>of any state other than Minnesota exempt from federal income taxes under the Internal <br/>
<a id="pl.15.6"></a><var>15.6</var>Revenue Code or any other federal statute; and<br/>
<a id="pl.15.7"></a><var>15.7</var>    (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue <br/>
<a id="pl.15.8"></a><var>15.8</var>Code, except:<br/>
<a id="pl.15.9"></a><var>15.9</var>(A) the portion of the exempt-interest dividends exempt from state taxation under <br/>
<a id="pl.15.10"></a><var>15.10</var>the laws of the United States; and<br/>
<a id="pl.15.11"></a><var>15.11</var>(B) the portion of the exempt-interest dividends derived from interest income <br/>
<a id="pl.15.12"></a><var>15.12</var>on obligations of the state of Minnesota or its political or governmental subdivisions, <br/>
<a id="pl.15.13"></a><var>15.13</var>municipalities, governmental agencies or instrumentalities, but only if the portion of the <br/>
<a id="pl.15.14"></a><var>15.14</var>exempt-interest dividends from such Minnesota sources paid to all shareholders represents <br/>
<a id="pl.15.15"></a><var>15.15</var>95 percent or more of the exempt-interest dividends, including any dividends exempt <br/>
<a id="pl.15.16"></a><var>15.16</var>under subitem (A), that are paid by the regulated investment company as defined in section <br/>
<a id="pl.15.17"></a><var>15.17</var>851(a) of the Internal Revenue Code, or the fund of the regulated investment company as <br/>
<a id="pl.15.18"></a><var>15.18</var>defined in section 851(g) of the Internal Revenue Code, making the payment; and<br/>
<a id="pl.15.19"></a><var>15.19</var>    (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal <br/>
<a id="pl.15.20"></a><var>15.20</var>government described in section 7871(c) of the Internal Revenue Code shall be treated as <br/>
<a id="pl.15.21"></a><var>15.21</var>interest income on obligations of the state in which the tribe is located;<br/>
<a id="pl.15.22"></a><var>15.22</var>    (2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid <br/>
<a id="pl.15.23"></a><var>15.23</var>or accrued within the taxable year under this chapter and the amount of taxes based on <br/>
<a id="pl.15.24"></a><var>15.24</var>net income paid, sales and use, motor vehicle sales, or excise taxes paid to any other <br/>
<a id="pl.15.25"></a><var>15.25</var>state or to any province or territory of Canada, to the extent allowed as a deduction <br/>
<a id="pl.15.26"></a><var>15.26</var>under section 63(d) of the Internal Revenue Code, but the addition may not be more <br/>
<a id="pl.15.27"></a><var>15.27</var>than the amount by which the itemized deductions as allowed under section 63(d) of <br/>
<a id="pl.15.28"></a><var>15.28</var>the Internal Revenue Code exceeds the amount of the standard deduction as defined in <br/>
<a id="pl.15.29"></a><var>15.29</var>section 63(c) of the Internal Revenue Code, disregarding the amounts allowed under <br/>
<a id="pl.15.30"></a><var>15.30</var>sections 63(c)(1)(C) and 63(c)(1)(E) of the Internal Revenue Code. For the purpose of <br/>
<a id="pl.15.31"></a><var>15.31</var>this paragraph, the disallowance of itemized deductions under section 68 of the Internal <br/>
<a id="pl.15.32"></a><var>15.32</var>Revenue Code of 1986, income, sales and use, motor vehicle sales, or excise taxes are <br/>
<a id="pl.15.33"></a><var>15.33</var>the last itemized deductions disallowed;<br/>
<a id="pl.15.34"></a><var>15.34</var>    (3) the capital gain amount of a lump-sum distribution to which the special tax under <br/>
<a id="pl.15.35"></a><var>15.35</var>section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;<br/>
<a id="pl.16.1"></a><var>16.1</var>    (4) the amount of income taxes paid or accrued within the taxable year under this <br/>
<a id="pl.16.2"></a><var>16.2</var>chapter and taxes based on net income paid to any other state or any province or territory <br/>
<a id="pl.16.3"></a><var>16.3</var>of Canada, to the extent allowed as a deduction in determining federal adjusted gross <br/>
<a id="pl.16.4"></a><var>16.4</var>income. For the purpose of this paragraph, income taxes do not include the taxes imposed <br/>
<a id="pl.16.5"></a><var>16.5</var>by sections 
         <statute_ref>290.0922, subdivision 1</statute_ref>, paragraph (b), 
         <statute_ref>290.9727</statute_ref>, 
         <statute_ref>290.9728</statute_ref>, and 
         <statute_ref>290.9729</statute_ref>;<br/>
<a id="pl.16.6"></a><var>16.6</var>    (5) the amount of expense, interest, or taxes disallowed pursuant to section 
         <statute_ref>290.10 <br/>
</statute_ref><a id="pl.16.7"></a><var>16.7</var>other than expenses or interest used in computing net interest income for the subtraction <br/>
<a id="pl.16.8"></a><var>16.8</var>allowed under subdivision 19b, clause (1);<br/>
<a id="pl.16.9"></a><var>16.9</var>    (6) the amount of a partner's pro rata share of net income which does not flow <br/>
<a id="pl.16.10"></a><var>16.10</var>through to the partner because the partnership elected to pay the tax on the income under <br/>
<a id="pl.16.11"></a><var>16.11</var>section 6242(a)(2) of the Internal Revenue Code;<br/>
<a id="pl.16.12"></a><var>16.12</var>    (7) 80 percent of the depreciation deduction allowed under section 168(k) of the <br/>
<a id="pl.16.13"></a><var>16.13</var>Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that <br/>
<a id="pl.16.14"></a><var>16.14</var>in the taxable year generates a deduction for depreciation under section 168(k) and the <br/>
<a id="pl.16.15"></a><var>16.15</var>activity generates a loss for the taxable year that the taxpayer is not allowed to claim for <br/>
<a id="pl.16.16"></a><var>16.16</var>the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is <br/>
<a id="pl.16.17"></a><var>16.17</var>limited to excess of the depreciation claimed by the activity under section 168(k) over the <br/>
<a id="pl.16.18"></a><var>16.18</var>amount of the loss from the activity that is not allowed in the taxable year. In succeeding <br/>
<a id="pl.16.19"></a><var>16.19</var>taxable years when the losses not allowed in the taxable year are allowed, the depreciation <br/>
<a id="pl.16.20"></a><var>16.20</var>under section 168(k) is allowed;<br/>
<a id="pl.16.21"></a><var>16.21</var>    (8) for taxable years beginning before January 1, 2011, 80 percent of the amount by <br/>
<a id="pl.16.22"></a><var>16.22</var>which the deduction allowed by section 179 of the Internal Revenue Code exceeds the <br/>
<a id="pl.16.23"></a><var>16.23</var>deduction allowable by section 179 of the Internal Revenue Code of 1986, as amended <br/>
<a id="pl.16.24"></a><var>16.24</var>through December 31, 2003;<br/>
<a id="pl.16.25"></a><var>16.25</var>    (9) to the extent deducted in computing federal taxable income, the amount of the <br/>
<a id="pl.16.26"></a><var>16.26</var>deduction allowable under section 199 of the Internal Revenue Code;<br/>
<a id="pl.16.27"></a><var>16.27</var>    (10) for taxable years beginning before January 1, 2013, the exclusion allowed <br/>
<a id="pl.16.28"></a><var>16.28</var>under section 139A of the Internal Revenue Code for federal subsidies for prescription <br/>
<a id="pl.16.29"></a><var>16.29</var>drug plans;<br/>
<a id="pl.16.30"></a><var>16.30</var>(11) the amount of expenses disallowed under section 290.10, subdivision 2;<br/>
<a id="pl.16.31"></a><var>16.31</var>    (12) the amount deducted for qualified tuition and related expenses under section <br/>
<a id="pl.16.32"></a><var>16.32</var>222 of the Internal Revenue Code, to the extent deducted from gross income;<br/>
<a id="pl.16.33"></a><var>16.33</var>    (13) the amount deducted for certain expenses of elementary and secondary school <br/>
<a id="pl.16.34"></a><var>16.34</var>teachers under section 62(a)(2)(D) of the Internal Revenue Code, to the extent deducted <br/>
<a id="pl.16.35"></a><var>16.35</var>from gross income;<br/>
<a id="pl.17.1"></a><var>17.1</var>(14) the additional standard deduction for property taxes payable that is allowable <br/>
<a id="pl.17.2"></a><var>17.2</var>under section 63(c)(1)(C) of the Internal Revenue Code;<br/>
<a id="pl.17.3"></a><var>17.3</var>(15) the additional standard deduction for qualified motor vehicle sales taxes <br/>
<a id="pl.17.4"></a><var>17.4</var>allowable under section 63(c)(1)(E) of the Internal Revenue Code;<br/>
<a id="pl.17.5"></a><var>17.5</var>(16) discharge of indebtedness income resulting from reacquisition of business <br/>
<a id="pl.17.6"></a><var>17.6</var>indebtedness and deferred under section 108(i) of the Internal Revenue Code; and<br/>
<a id="pl.17.7"></a><var>17.7</var>(17) the amount of unemployment compensation exempt from tax under section <br/>
<a id="pl.17.8"></a><var>17.8</var>85(c) of the Internal Revenue Code.<br/>
<a id="pl.17.9"></a><var>17.9</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.17.10"></a><var>17.10</var>December 31, 2009.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.17.11"></a><var>17.11</var>    Sec. 4. Minnesota Statutes 2010, section 290.01, subdivision 19c, is amended to read:<br/>
<a id="pl.17.12"></a><var>17.12</var>    Subd. 19c. <b>Corporations; additions to federal taxable income.</b> For corporations, <br/>
<a id="pl.17.13"></a><var>17.13</var>there shall be added to federal taxable income:<br/>
<a id="pl.17.14"></a><var>17.14</var>    (1) the amount of any deduction taken for federal income tax purposes for income, <br/>
<a id="pl.17.15"></a><var>17.15</var>excise, or franchise taxes based on net income or related minimum taxes, including but not <br/>
<a id="pl.17.16"></a><var>17.16</var>limited to the tax imposed under section 
         <statute_ref>290.0922</statute_ref>, paid by the corporation to Minnesota, <br/>
<a id="pl.17.17"></a><var>17.17</var>another state, a political subdivision of another state, the District of Columbia, or any <br/>
<a id="pl.17.18"></a><var>17.18</var>foreign country or possession of the United States;<br/>
<a id="pl.17.19"></a><var>17.19</var>    (2) interest not subject to federal tax upon obligations of: the United States, its <br/>
<a id="pl.17.20"></a><var>17.20</var>possessions, its agencies, or its instrumentalities; the state of Minnesota or any other <br/>
<a id="pl.17.21"></a><var>17.21</var>state, any of its political or governmental subdivisions, any of its municipalities, or any <br/>
<a id="pl.17.22"></a><var>17.22</var>of its governmental agencies or instrumentalities; the District of Columbia; or Indian <br/>
<a id="pl.17.23"></a><var>17.23</var>tribal governments;<br/>
<a id="pl.17.24"></a><var>17.24</var>    (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal <br/>
<a id="pl.17.25"></a><var>17.25</var>Revenue Code;<br/>
<a id="pl.17.26"></a><var>17.26</var>    (4) the amount of any net operating loss deduction taken for federal income tax <br/>
<a id="pl.17.27"></a><var>17.27</var>purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss <br/>
<a id="pl.17.28"></a><var>17.28</var>deduction under section 810 of the Internal Revenue Code;<br/>
<a id="pl.17.29"></a><var>17.29</var>    (5) the amount of any special deductions taken for federal income tax purposes <br/>
<a id="pl.17.30"></a><var>17.30</var>under sections 241 to 247 and 965 of the Internal Revenue Code;<br/>
<a id="pl.17.31"></a><var>17.31</var>    (6) losses from the business of mining, as defined in section 
         <statute_ref>290.05, subdivision 1</statute_ref>, <br/>
<a id="pl.17.32"></a><var>17.32</var>clause (a), that are not subject to Minnesota income tax;<br/>
<a id="pl.17.33"></a><var>17.33</var>    (7) the amount of any capital losses deducted for federal income tax purposes under <br/>
<a id="pl.17.34"></a><var>17.34</var>sections 1211 and 1212 of the Internal Revenue Code;<br/>
<a id="pl.18.1"></a><var>18.1</var>    (8) the exempt foreign trade income of a foreign sales corporation under sections <br/>
<a id="pl.18.2"></a><var>18.2</var>921(a) and 291 of the Internal Revenue Code;<br/>
<a id="pl.18.3"></a><var>18.3</var>    (9) the amount of percentage depletion deducted under sections 611 through 614 and <br/>
<a id="pl.18.4"></a><var>18.4</var>291 of the Internal Revenue Code;<br/>
<a id="pl.18.5"></a><var>18.5</var>    (10) for certified pollution control facilities placed in service in a taxable year <br/>
<a id="pl.18.6"></a><var>18.6</var>beginning before December 31, 1986, and for which amortization deductions were elected <br/>
<a id="pl.18.7"></a><var>18.7</var>under section 169 of the Internal Revenue Code of 1954, as amended through December <br/>
<a id="pl.18.8"></a><var>18.8</var>31, 1985, the amount of the amortization deduction allowed in computing federal taxable <br/>
<a id="pl.18.9"></a><var>18.9</var>income for those facilities;<br/>
<a id="pl.18.10"></a><var>18.10</var>    (11) the amount of any deemed dividend from a foreign operating corporation <br/>
<a id="pl.18.11"></a><var>18.11</var>determined pursuant to section 
         <statute_ref>290.17, subdivision 4</statute_ref>, paragraph (g). The deemed dividend <br/>
<a id="pl.18.12"></a><var>18.12</var>shall be reduced by the amount of the addition to income required by clauses (20), (21), <br/>
<a id="pl.18.13"></a><var>18.13</var>(22), and (23);<br/>
<a id="pl.18.14"></a><var>18.14</var>    (12) the amount of a partner's pro rata share of net income which does not flow <br/>
<a id="pl.18.15"></a><var>18.15</var>through to the partner because the partnership elected to pay the tax on the income under <br/>
<a id="pl.18.16"></a><var>18.16</var>section 6242(a)(2) of the Internal Revenue Code;<br/>
<a id="pl.18.17"></a><var>18.17</var>    (13) the amount of net income excluded under section 114 of the Internal Revenue <br/>
<a id="pl.18.18"></a><var>18.18</var>Code;<br/>
<a id="pl.18.19"></a><var>18.19</var>    (14) any increase in subpart F income, as defined in section 952(a) of the Internal <br/>
<a id="pl.18.20"></a><var>18.20</var>Revenue Code, for the taxable year when subpart F income is calculated without regard to <br/>
<a id="pl.18.21"></a><var>18.21</var>the provisions of Division C, title III, section 303(b) of Public Law 110-343;<br/>
<a id="pl.18.22"></a><var>18.22</var>    (15) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A) <br/>
<a id="pl.18.23"></a><var>18.23</var>and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer <br/>
<a id="pl.18.24"></a><var>18.24</var>has an activity that in the taxable year generates a deduction for depreciation under <br/>
<a id="pl.18.25"></a><var>18.25</var>section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year <br/>
<a id="pl.18.26"></a><var>18.26</var>that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed <br/>
<a id="pl.18.27"></a><var>18.27</var>under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the <br/>
<a id="pl.18.28"></a><var>18.28</var>depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the <br/>
<a id="pl.18.29"></a><var>18.29</var>amount of the loss from the activity that is not allowed in the taxable year. In succeeding <br/>
<a id="pl.18.30"></a><var>18.30</var>taxable years when the losses not allowed in the taxable year are allowed, the depreciation <br/>
<a id="pl.18.31"></a><var>18.31</var>under section 168(k)(1)(A) and (k)(4)(A) is allowed;<br/>
<a id="pl.18.32"></a><var>18.32</var>    (16) for taxable years beginning before January 1, 2011, 80 percent of the amount by <br/>
<a id="pl.18.33"></a><var>18.33</var>which the deduction allowed by section 179 of the Internal Revenue Code exceeds the <br/>
<a id="pl.18.34"></a><var>18.34</var>deduction allowable by section 179 of the Internal Revenue Code of 1986, as amended <br/>
<a id="pl.18.35"></a><var>18.35</var>through December 31, 2003;<br/>
<a id="pl.19.1"></a><var>19.1</var>    (17) to the extent deducted in computing federal taxable income, the amount of the <br/>
<a id="pl.19.2"></a><var>19.2</var>deduction allowable under section 199 of the Internal Revenue Code;<br/>
<a id="pl.19.3"></a><var>19.3</var>    (18) for taxable years beginning before January 1, 2013, the exclusion allowed <br/>
<a id="pl.19.4"></a><var>19.4</var>under section 139A of the Internal Revenue Code for federal subsidies for prescription <br/>
<a id="pl.19.5"></a><var>19.5</var>drug plans;<br/>
<a id="pl.19.6"></a><var>19.6</var>    (19) the amount of expenses disallowed under section 
         <statute_ref>290.10, subdivision 2</statute_ref>;<br/>
<a id="pl.19.7"></a><var>19.7</var>    (20) an amount equal to the interest and intangible expenses, losses, and costs paid, <br/>
<a id="pl.19.8"></a><var>19.8</var>accrued, or incurred by any member of the taxpayer's unitary group to or for the benefit <br/>
<a id="pl.19.9"></a><var>19.9</var>of a corporation that is a member of the taxpayer's unitary business group that qualifies <br/>
<a id="pl.19.10"></a><var>19.10</var>as a foreign operating corporation. For purposes of this clause, intangible expenses and <br/>
<a id="pl.19.11"></a><var>19.11</var>costs include:<br/>
<a id="pl.19.12"></a><var>19.12</var>    (i) expenses, losses, and costs for, or related to, the direct or indirect acquisition, <br/>
<a id="pl.19.13"></a><var>19.13</var>use, maintenance or management, ownership, sale, exchange, or any other disposition of <br/>
<a id="pl.19.14"></a><var>19.14</var>intangible property;<br/>
<a id="pl.19.15"></a><var>19.15</var>    (ii) losses incurred, directly or indirectly, from factoring transactions or discounting <br/>
<a id="pl.19.16"></a><var>19.16</var>transactions;<br/>
<a id="pl.19.17"></a><var>19.17</var>    (iii) royalty, patent, technical, and copyright fees;<br/>
<a id="pl.19.18"></a><var>19.18</var>    (iv) licensing fees; and<br/>
<a id="pl.19.19"></a><var>19.19</var>    (v) other similar expenses and costs.<br/>
<a id="pl.19.20"></a><var>19.20</var>For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent <br/>
<a id="pl.19.21"></a><var>19.21</var>applications, trade names, trademarks, service marks, copyrights, mask works, trade <br/>
<a id="pl.19.22"></a><var>19.22</var>secrets, and similar types of intangible assets.<br/>
<a id="pl.19.23"></a><var>19.23</var>This clause does not apply to any item of interest or intangible expenses or costs paid, <br/>
<a id="pl.19.24"></a><var>19.24</var>accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect <br/>
<a id="pl.19.25"></a><var>19.25</var>to such item of income to the extent that the income to the foreign operating corporation <br/>
<a id="pl.19.26"></a><var>19.26</var>is income from sources without the United States as defined in subtitle A, chapter 1, <br/>
<a id="pl.19.27"></a><var>19.27</var>subchapter N, part 1, of the Internal Revenue Code;<br/>
<a id="pl.19.28"></a><var>19.28</var>    (21) except as already included in the taxpayer's taxable income pursuant to clause <br/>
<a id="pl.19.29"></a><var>19.29</var>(20), any interest income and income generated from intangible property received or <br/>
<a id="pl.19.30"></a><var>19.30</var>accrued by a foreign operating corporation that is a member of the taxpayer's unitary <br/>
<a id="pl.19.31"></a><var>19.31</var>group. For purposes of this clause, income generated from intangible property includes:<br/>
<a id="pl.19.32"></a><var>19.32</var>    (i) income related to the direct or indirect acquisition, use, maintenance or <br/>
<a id="pl.19.33"></a><var>19.33</var>management, ownership, sale, exchange, or any other disposition of intangible property;<br/>
<a id="pl.19.34"></a><var>19.34</var>    (ii) income from factoring transactions or discounting transactions;<br/>
<a id="pl.19.35"></a><var>19.35</var>    (iii) royalty, patent, technical, and copyright fees;<br/>
<a id="pl.19.36"></a><var>19.36</var>    (iv) licensing fees; and<br/>
<a id="pl.20.1"></a><var>20.1</var>    (v) other similar income.<br/>
<a id="pl.20.2"></a><var>20.2</var>For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent <br/>
<a id="pl.20.3"></a><var>20.3</var>applications, trade names, trademarks, service marks, copyrights, mask works, trade <br/>
<a id="pl.20.4"></a><var>20.4</var>secrets, and similar types of intangible assets.<br/>
<a id="pl.20.5"></a><var>20.5</var>This clause does not apply to any item of interest or intangible income received or accrued <br/>
<a id="pl.20.6"></a><var>20.6</var>by a foreign operating corporation with respect to such item of income to the extent that <br/>
<a id="pl.20.7"></a><var>20.7</var>the income is income from sources without the United States as defined in subtitle A, <br/>
<a id="pl.20.8"></a><var>20.8</var>chapter 1, subchapter N, part 1, of the Internal Revenue Code;<br/>
<a id="pl.20.9"></a><var>20.9</var>    (22) the dividends attributable to the income of a foreign operating corporation that <br/>
<a id="pl.20.10"></a><var>20.10</var>is a member of the taxpayer's unitary group in an amount that is equal to the dividends <br/>
<a id="pl.20.11"></a><var>20.11</var>paid deduction of a real estate investment trust under section 561(a) of the Internal <br/>
<a id="pl.20.12"></a><var>20.12</var>Revenue Code for amounts paid or accrued by the real estate investment trust to the <br/>
<a id="pl.20.13"></a><var>20.13</var>foreign operating corporation;<br/>
<a id="pl.20.14"></a><var>20.14</var>    (23) the income of a foreign operating corporation that is a member of the taxpayer's <br/>
<a id="pl.20.15"></a><var>20.15</var>unitary group in an amount that is equal to gains derived from the sale of real or personal <br/>
<a id="pl.20.16"></a><var>20.16</var>property located in the United States;<br/>
<a id="pl.20.17"></a><var>20.17</var>    (24) the additional amount allowed as a deduction for donation of computer <br/>
<a id="pl.20.18"></a><var>20.18</var>technology and equipment under section 170(e)(6) of the Internal Revenue Code, to the <br/>
<a id="pl.20.19"></a><var>20.19</var>extent deducted from taxable income; and<br/>
<a id="pl.20.20"></a><var>20.20</var>(25) discharge of indebtedness income resulting from reacquisition of business <br/>
<a id="pl.20.21"></a><var>20.21</var>indebtedness and deferred under section 108(i) of the Internal Revenue Code.<br/>
<a id="pl.20.22"></a><var>20.22</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.20.23"></a><var>20.23</var>December 31, 2009.<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.20.24"></a><var>20.24</var>    Sec. 5. Minnesota Statutes 2010, section 290.01, subdivision 31, is amended to read:<br/>
<a id="pl.20.25"></a><var>20.25</var>    Subd. 31. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br/>
<a id="pl.20.26"></a><var>20.26</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through March <br/>
<a id="pl.20.27"></a><var>20.27</var>18, 2010 September 27, 2010. Internal Revenue Code also includes any uncodified <br/>
<a id="pl.20.28"></a><var>20.28</var>provision in federal law that relates to provisions of the Internal Revenue Code that are <br/>
<a id="pl.20.29"></a><var>20.29</var>incorporated into Minnesota law.<br/>
<a id="pl.20.30"></a><var>20.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.20.31"></a><var>20.31</var>except that the changes incorporated by federal changes are effective at the same time as <br/>
<a id="pl.20.32"></a><var>20.32</var>the changes were effective for federal purposes.<br/>
<br/>
<a id="bill.5.6.0"></a><a id="pl.20.33"></a><var>20.33</var>    Sec. 6. Minnesota Statutes 2010, section 290A.03, subdivision 15, is amended to read:<br/>
<a id="pl.21.1"></a><var>21.1</var>    Subd. 15. <b>Internal Revenue Code.</b>  "Internal Revenue Code" means the Internal <br/>
<a id="pl.21.2"></a><var>21.2</var>Revenue Code of 1986, as amended through March 18, 2010 September 27, 2010.<br/>
<a id="pl.21.3"></a><var>21.3</var><b>EFFECTIVE DATE.</b>This section is effective for property tax refunds based on <br/>
<a id="pl.21.4"></a><var>21.4</var>property taxes payable on or after December 31, 2010, and rent paid on or after December <br/>
<a id="pl.21.5"></a><var>21.5</var>31, 2009.<br/>
<br/>
<a id="bill.5.7.0"></a><a id="pl.21.6"></a><var>21.6</var>    Sec. 7. <b>CORRECTED FORM W-2 NOT REQUIRED.</b><br/>
<a id="pl.21.7"></a><var>21.7</var>Employers who have prepared and distributed form W-2, wage and tax statement, <br/>
<a id="pl.21.8"></a><var>21.8</var>for tax year 2010, that reported to employees the amount of health coverage provided to <br/>
<a id="pl.21.9"></a><var>21.9</var>adult children under age 27 includable in net income under prior law, are not required to <br/>
<a id="pl.21.10"></a><var>21.10</var>prepare and distribute corrected tax year 2010 form W-2.<br/>
<a id="pl.21.11"></a><var>21.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>