1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 42
1.2A bill for an act
1.3relating to the financing and operation of state and local government; making
1.4changes to individual income, corporate franchise, property, aids, credits,
1.5payments, refunds, sales and use, tax increment financing, aggregate material,
1.6minerals, local, and other taxes and tax-related provisions; making changes to the
1.7green acres and rural preserve programs; authorizing border city development
1.8zone powers and local taxes; extending levy limits; modifying regional
1.9railroad authority provisions; repealing sustainable forest resource management
1.10incentive; authorizing grants to local governments for cooperation, consolidation,
1.11and service innovation; providing a science and technology program; reducing
1.12certain income rates; allowing capital equipment exemption at time of purchase;
1.13directing commissioner of revenue to negotiate a reciprocity agreement with
1.14state of Wisconsin and permitting its termination only by law; requiring studies;
1.15requiring reports; canceling amounts in the cash flow account; appropriating
1.16money;amending Minnesota Statutes 2010, sections 97A.061, subdivisions
1.171, 3; 126C.01, subdivision 3; 270A.03, subdivision 7; 270B.12, by adding a
1.18subdivision; 270C.13, subdivision 1; 272.02, by adding a subdivision; 273.111,
1.19subdivision 9, by adding a subdivision; 273.114, subdivisions 2, 5, 6; 273.121,
1.20subdivision 1; 273.13, subdivisions 21b, 25, 34; 273.1384, subdivisions 1, 3,
1.214; 273.1393; 273.1398, subdivision 3; 275.025, subdivisions 1, 3, 4; 275.066;
1.22275.08, subdivisions 1a, 1d; 275.70, subdivision 5; 275.71, subdivisions 2,
1.234, 5; 276.04, subdivision 2; 279.01, subdivision 1; 289A.20, subdivision 4;
1.24289A.50, subdivision 1; 290.01, subdivisions 6, 19b; 290.06, subdivision 2c;
1.25290.068, subdivision 1; 290.081; 290.091, subdivision 2; 290A.03, subdivisions
1.2611, 13; 297A.61, subdivision 3; 297A.62, by adding a subdivision; 297A.63,
1.27by adding a subdivision; 297A.668, subdivision 7, by adding a subdivision;
1.28297A.68, subdivision 5; 297A.70, subdivision 3; 297A.75; 297A.99, subdivision
1.291; 298.01, subdivision 3; 298.015, subdivision 1; 298.018, subdivision 1;
1.30298.28, subdivision 3; 298.75, by adding a subdivision; 398A.04, subdivision
1.318; 398A.07, subdivision 2; 469.1763, subdivision 2; 473.757, subdivisions 2,
1.3211; 477A.011, by adding a subdivision; 477A.0124, by adding a subdivision;
1.33477A.013, subdivisions 8, 9, by adding a subdivision; 477A.03; 477A.11,
1.34subdivision 1; 477A.12, subdivision 1; 477A.14, subdivision 1; 477A.17; Laws
1.351996, chapter 471, article 2, section 29, subdivision 1, as amended; Laws 1998,
1.36chapter 389, article 8, section 43, subdivisions 3, as amended, 4, as amended,
1.375, as amended; Laws 2008, chapter 366, article 7, section 19, subdivision 3;
1.38Laws 2010, chapter 389, article 7, section 22; proposing coding for new law in
1.39Minnesota Statutes, chapters 116W; 275; 373; repealing Minnesota Statutes
1.402010, sections 10A.322, subdivision 4; 13.4967, subdivision 2; 273.114,
1.41subdivision 1; 273.1384, subdivision 6; 279.01, subdivision 4; 289A.60,
1.42subdivision 31; 290.06, subdivision 23; 290C.01; 290C.02; 290C.03; 290C.04;
2.1290C.05; 290C.055; 290C.06; 290C.07; 290C.08; 290C.09; 290C.10; 290C.11;
2.2290C.12; 290C.13; 477A.145.
2.3May 16, 2011
2.4The Honorable Kurt Zellers
2.5Speaker of the House of Representatives
2.6The Honorable Michelle L. Fischbach
2.7President of the Senate
2.8We, the undersigned conferees for H. F. No. 42 report that we have agreed upon the
2.9items in dispute and recommend as follows:
2.10That the Senate recede from its amendments and that H. F. No. 42 be further
2.11amended as follows:
2.12Delete everything after the enacting clause and insert:
2.13"
ARTICLE 1
2.14
INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES
2.15 Section 1. Minnesota Statutes 2010, section 270B.12, is amended by adding a
2.16subdivision to read:
2.17
new text begin Subd. 14.new text end new text begin Wisconsin secretary of revenue; income tax reciprocity benchmark new text end
2.18
new text begin study.new text end new text begin The commissioner may disclose return information to the secretary of revenue new text end
2.19
new text begin of the state of Wisconsin for the purpose of conducting a joint individual income tax new text end
2.20
new text begin reciprocity study.new text end
2.21
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
2.22 Sec. 2. Minnesota Statutes 2010, section 290.01, subdivision 19b, is amended to read:
2.23 Subd. 19b.
Subtractions from federal taxable income. For individuals, estates,
2.24and trusts, there shall be subtracted from federal taxable income:
2.25 (1) net interest income on obligations of any authority, commission, or
2.26instrumentality of the United States to the extent includable in taxable income for federal
2.27income tax purposes but exempt from state income tax under the laws of the United States;
2.28 (2) if included in federal taxable income, the amount of any overpayment of income
2.29tax to Minnesota or to any other state, for any previous taxable year, whether the amount
2.30is received as a refund or as a credit to another taxable year's income tax liability;
2.31 (3) the amount paid to others, less the amount used to claim the credit allowed under
2.32section
290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
2.33to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
2.34transportation of each qualifying child in attending an elementary or secondary school
2.35situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
3.1resident of this state may legally fulfill the state's compulsory attendance laws, which
3.2is not operated for profit, and which adheres to the provisions of the Civil Rights Act
3.3of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
3.4tuition as defined in section
290.0674, subdivision 1, clause (1). As used in this clause,
3.5"textbooks" includes books and other instructional materials and equipment purchased
3.6or leased for use in elementary and secondary schools in teaching only those subjects
3.7legally and commonly taught in public elementary and secondary schools in this state.
3.8Equipment expenses qualifying for deduction includes expenses as defined and limited in
3.9section
290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
3.10books and materials used in the teaching of religious tenets, doctrines, or worship, the
3.11purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
3.12or materials for, or transportation to, extracurricular activities including sporting events,
3.13musical or dramatic events, speech activities, driver's education, or similar programs. No
3.14deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
3.15the qualifying child's vehicle to provide such transportation for a qualifying child. For
3.16purposes of the subtraction provided by this clause, "qualifying child" has the meaning
3.17given in section 32(c)(3) of the Internal Revenue Code;
3.18 (4) income as provided under section
290.0802;
3.19 (5) to the extent included in federal adjusted gross income, income realized on
3.20disposition of property exempt from tax under section
290.491;
3.21 (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
3.22of the Internal Revenue Code in determining federal taxable income by an individual
3.23who does not itemize deductions for federal income tax purposes for the taxable year, an
3.24amount equal to 50 percent of the excess of charitable contributions over $500 allowable
3.25as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
3.26under the provisions of Public Law 109-1 and Public Law 111-126;
3.27 (7) for individuals who are allowed a federal foreign tax credit for taxes that do not
3.28qualify for a credit under section
290.06, subdivision 22, an amount equal to the carryover
3.29of subnational foreign taxes for the taxable year, but not to exceed the total subnational
3.30foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
3.31"federal foreign tax credit" means the credit allowed under section 27 of the Internal
3.32Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
3.33under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
3.34the extent they exceed the federal foreign tax credit;
3.35 (8) in each of the five tax years immediately following the tax year in which an
3.36addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case
4.1of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
4.2of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
4.3the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or
4.4subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the
4.5positive value of any net operating loss under section 172 of the Internal Revenue Code
4.6generated for the tax year of the addition. The resulting delayed depreciation cannot be
4.7less than zero;
4.8 (9) job opportunity building zone income as provided under section
469.316;
4.9 (10) to the extent included in federal taxable income, the amount of compensation
4.10paid to members of the Minnesota National Guard or other reserve components of the
4.11United States military for active service performed in Minnesota, excluding compensation
4.12for services performed under the Active Guard Reserve (AGR) program. For purposes of
4.13this clause, "active service" means (i) state active service as defined in section
190.05,
4.14subdivision 5a
, clause (1); (ii) federally funded state active service as defined in section
4.15190.05, subdivision 5b
; or (iii) federal active service as defined in section
190.05,
4.16subdivision 5c
, but "active service" excludes service performed in accordance with section
4.17190.08, subdivision 3
;
4.18 (11) to the extent included in federal taxable income, the amount of compensation
4.19paid to Minnesota residents who are members of the armed forces of the United States or
4.20United Nations for active duty performed outside Minnesota under United States Code,
4.21title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of
4.22the United Nations;
4.23 (12) an amount, not to exceed $10,000, equal to qualified expenses related to a
4.24qualified donor's donation, while living, of one or more of the qualified donor's organs
4.25to another person for human organ transplantation. For purposes of this clause, "organ"
4.26means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
4.27"human organ transplantation" means the medical procedure by which transfer of a human
4.28organ is made from the body of one person to the body of another person; "qualified
4.29expenses" means unreimbursed expenses for both the individual and the qualified donor
4.30for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
4.31may be subtracted under this clause only once; and "qualified donor" means the individual
4.32or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
4.33individual may claim the subtraction in this clause for each instance of organ donation for
4.34transplantation during the taxable year in which the qualified expenses occur;
4.35 (13) in each of the five tax years immediately following the tax year in which an
4.36addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a
5.1shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
5.2addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the
5.3case of a shareholder of a corporation that is an S corporation, minus the positive value of
5.4any net operating loss under section 172 of the Internal Revenue Code generated for the
5.5tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
5.6subtraction is not allowed under this clause;
5.7 (14) to the extent included in federal taxable income, compensation paid to a service
5.8member as defined in United States Code, title 10, section 101(a)(5), for military service
5.9as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2);
5.10 (15) international economic development zone income as provided under section
5.11469.325
;
5.12 (16) to the extent included in federal taxable income, the amount of national service
5.13educational awards received from the National Service Trust under United States Code,
5.14title 42, sections 12601 to 12604, for service in an approved Americorps National Service
5.15program; and
5.16(17) to the extent included in federal taxable income, discharge of indebtedness
5.17income resulting from reacquisition of business indebtedness included in federal taxable
5.18income under section 108(i) of the Internal Revenue Code. This subtraction applies only
5.19to the extent that the income was included in net income in a prior year as a result of the
5.20addition under section
290.01, subdivision 19a, clause (16).
new text begin ;new text end
5.21
new text begin (18) to the extent not deducted in computing federal taxable income, charitable new text end
5.22
new text begin contributions of food inventory as determined under the provisions of section 170(e)(3)(C) new text end
5.23
new text begin of the Internal Revenue Code, determined without regard to the termination date under new text end
5.24
new text begin section 170(e)(3)(C)(iv); andnew text end
5.25
new text begin (19) to the extent included in federal taxable income, 55 percent of compensation new text end
5.26
new text begin received from a pension or other retirement pay from the federal government for service new text end
5.27
new text begin in the military, as computed under United States Code, title 10, sections 1401 to 1414, new text end
5.28
new text begin 1447 to 1455, and 12733.new text end
5.29
new text begin EFFECTIVE DATE.new text end new text begin Clause (18) is effective for taxable years beginning after new text end
5.30
new text begin December 31, 2010. Clause (19) is effective for taxable years beginning after December new text end
5.31
new text begin 31, 2012.new text end
5.32 Sec. 3. Minnesota Statutes 2010, section 290.06, subdivision 2c, is amended to read:
5.33 Subd. 2c.
Schedules of rates for individuals, estates, and trusts. (a) The income
5.34taxes imposed by this chapter upon married individuals filing joint returns and surviving
6.1spouses as defined in section 2(a) of the Internal Revenue Code must be computed by
6.2applying to their taxable net income the following schedule of rates:
6.3 (1) On the first $25,680, 5.35 percent;
6.4 (2) On all over $25,680, but not over $102,030, 7.05 percent;
6.5 (3) On all over $102,030, 7.85 percent.
6.6 Married individuals filing separate returns, estates, and trusts must compute their
6.7income tax by applying the above rates to their taxable income, except that the income
6.8brackets will be one-half of the above amounts.
6.9 (b) The income taxes imposed by this chapter upon unmarried individuals must be
6.10computed by applying to taxable net income the following schedule of rates:
6.11 (1) On the first $17,570, 5.35 percent;
6.12 (2) On all over $17,570, but not over $57,710, 7.05 percent;
6.13 (3) On all over $57,710, 7.85 percent.
6.14 (c) The income taxes imposed by this chapter upon unmarried individuals qualifying
6.15as a head of household as defined in section 2(b) of the Internal Revenue Code must be
6.16computed by applying to taxable net income the following schedule of rates:
6.17 (1) On the first $21,630, 5.35 percent;
6.18 (2) On all over $21,630, but not over $86,910, 7.05 percent;
6.19 (3) On all over $86,910, 7.85 percent.
6.20 (d) In lieu of a tax computed according to the rates set forth in this subdivision, the
6.21tax of any individual taxpayer whose taxable net income for the taxable year is less than
6.22an amount determined by the commissioner must be computed in accordance with tables
6.23prepared and issued by the commissioner of revenue based on income brackets of not
6.24more than $100. The amount of tax for each bracket shall be computed at the rates set
6.25forth in this subdivision, provided that the commissioner may disregard a fractional part of
6.26a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.
6.27 (e) An individual who is not a Minnesota resident for the entire year must compute
6.28the individual's Minnesota income tax as provided in this subdivision. After the
6.29application of the nonrefundable credits provided in this chapter, the tax liability must
6.30then be multiplied by a fraction in which:
6.31 (1) the numerator is the individual's Minnesota source federal adjusted gross income
6.32as defined in section 62 of the Internal Revenue Code and increased by the additions
6.33required under section
290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12),
6.34(13), (16), and (17), and reduced by the Minnesota assignable portion of the subtraction
6.35for United States government interest under section
290.01, subdivision 19b, clause (1),
6.36and the subtractions under section
290.01, subdivision 19b, clauses (8), (9), (13), (14),
7.1(15), and (17),
new text begin (18), and (19), new text end after applying the allocation and assignability provisions of
7.2section
290.081, clause (a), or
290.17; and
7.3 (2) the denominator is the individual's federal adjusted gross income as defined in
7.4section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
7.5section
290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), (13), (16), and (17),
7.6and reduced by the amounts specified in section
290.01, subdivision 19b, clauses (1), (8),
7.7(9), (13), (14), (15), and (17)
new text begin , (18), and (19)new text end .
7.8
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
7.9
new text begin December 31, 2010, except that the new references to Minnesota Statutes, section 290.01, new text end
7.10
new text begin subdivision 19b, clause (19), in paragraph (e), clauses (1) and (2), are effective for taxable new text end
7.11
new text begin years beginning after December 31, 2012.new text end
7.12 Sec. 4. Minnesota Statutes 2010, section 290.0674, subdivision 1, is amended to read:
7.13 Subdivision 1.
Credit allowed. An individual is allowed a credit against the
7.14tax imposed by this chapter in an amount equal to 75 percent of the amount paid for
7.15education-related expenses for a qualifying child in kindergarten through grade 12. For
7.16purposes of this section, "education-related expenses" means:
7.17(1) fees or tuition for instruction by an instructor under section
120A.22, subdivision
7.1810
, clause (1), (2), (3), (4), or (5), or a member of the Minnesota Music Teachers
7.19Association, and who is not a lineal ancestor or sibling of the dependent for instruction
7.20outside the regular school day or school year, including tutoring, driver's education
7.21offered as part of school curriculum, regardless of whether it is taken from a public or
7.22private entity or summer camps, in grade or age appropriate curricula that supplement
7.23curricula and instruction available during the regular school year, that assists a dependent
7.24to improve knowledge of core curriculum areas or to expand knowledge and skills under
7.25the required academic standards under section
120B.021, subdivision 1, and the elective
7.26standard under section
120B.022, subdivision 1, clause (2), and that do not include the
7.27teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such
7.28tenets, doctrines, or worship;
7.29(2) expenses for textbooks, including books and other instructional materials and
7.30equipment purchased or leased for use in elementary and secondary schools in teaching
7.31only those subjects legally and commonly taught in public elementary and secondary
7.32schools in this state. "Textbooks" does not include instructional books and materials
7.33used in the teaching of religious tenets, doctrines, or worship, the purpose of which is
7.34to instill such tenets, doctrines, or worship, nor does it include books or materials for
8.1extracurricular activities including sporting events, musical or dramatic events, speech
8.2activities, driver's education, or similar programs;
8.3(3) a maximum expense of $200 per family for personal computer hardware,
8.4excluding single purpose processors, and educational software that assists a dependent to
8.5improve knowledge of core curriculum areas or to expand knowledge and skills under
8.6the required academic standards under section
120B.021, subdivision 1, and the elective
8.7standard under section
120B.022, subdivision 1, clause (2), purchased for use in the
8.8taxpayer's home and not used in a trade or business regardless of whether the computer is
8.9required by the dependent's school; and
8.10(4) the amount paid to others for
new text begin tuition and new text end transportation of a qualifying child
8.11attending an elementary or secondary school situated in Minnesota, North Dakota, South
8.12Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's
8.13compulsory attendance laws, which is not operated for profit, and which adheres to the
8.14provisions of the Civil Rights Act of 1964 and chapter 363A.
8.15For purposes of this section, "qualifying child" has the meaning given in section
8.1632(c)(3) of the Internal Revenue Code.
8.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
8.18
new text begin December 31, 2012.new text end
8.19 Sec. 5. Minnesota Statutes 2010, section 290.068, subdivision 1, is amended to read:
8.20 Subdivision 1.
Credit allowed. A corporation, partners in a partnership, or
8.21shareholders in a corporation treated as an "S" corporation under section
290.9725 are
8.22allowed a credit against the tax computed under this chapter for the taxable year equal to:
8.23 (a) ten percent of the first $2,000,000 of the excess (if any) of
8.24 (1) the qualified research expenses for the taxable year, over
8.25 (2) the base amount; and
8.26 (b) 2.5
new text begin 4.7new text end percent on all of such excess expenses over $2,000,000.
8.27
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
8.28
new text begin December 31, 2013.new text end
8.29 Sec. 6. Minnesota Statutes 2010, section 290.081, is amended to read:
8.30
290.081 INCOME OF NONRESIDENTS, RECIPROCITY.
8.31
new text begin Subdivision 1.new text end new text begin Reciprocity with other states.new text end (a) The compensation received for
8.32the performance of personal or professional services within this state by an individual
8.33whose residence, place of abode, and place customarily returned to at least once a month
9.1is in another state, shall be excluded from gross income to the extent such compensation is
9.2subject to an income tax imposed by the state of residence; provided that such state allows
9.3a similar exclusion of compensation received by residents of Minnesota for services
9.4performed therein.
9.5(b) When it is deemed to be in the best interests of the people of this state, the
9.6commissioner may determine that the provisions of paragraph (a) shall not apply
new text begin , as they new text end
9.7
new text begin relate to all states except Wisconsin. The provisions of paragraph (a) apply with respect new text end
9.8
new text begin to Wisconsin only for taxable years in which a reciprocity agreement with Wisconsin is new text end
9.9
new text begin in effect as provided by this sectionnew text end . As long as the provisions of paragraph (a) apply
9.10between Minnesota and Wisconsin, the provisions of paragraph (a) shall apply to any
9.11individual who is domiciled in Wisconsin.
9.12(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota
9.13residents which would have been paid Wisconsin without paragraph (a) exceeds the
9.14Minnesota tax on Wisconsin residents which would have been paid Minnesota without
9.15paragraph (a), or vice versa, then the state with the net revenue loss resulting from
9.16paragraph (a) must be compensated by the other state as provided in the agreement under
9.17paragraph (d). This provision shall be effective for all years beginning after December 31,
9.181972. The data used for computing the loss to either state shall be determined on or before
9.19September 30 of the year following the close of the previous calendar year.
9.20(d) Interest is payable on all amounts calculated under paragraph (c) relating to
9.21taxable years beginning after December 31, 2000
new text begin and before January 1, 2010new text end . Interest
9.22accrues from July 1 of the taxable year.
9.23
new text begin (e) new text end The commissioner of revenue is authorized to enter into agreements
new text begin reciprocity new text end
9.24
new text begin agreementnew text end with the state of Wisconsin specifying
new text begin must specifynew text end the compensation required
9.25under paragraph (b), the
new text begin one or more new text end reciprocity payment due date,
new text begin dates for the revenue new text end
9.26
new text begin loss relating to each taxable year, with one or more estimated payment due dates in the new text end
9.27
new text begin same fiscal year in which the revenue loss occurred, and a final payment in the following new text end
9.28
new text begin fiscal year, new text end conditions constituting delinquency, interest rates, and a method for computing
9.29interest due.
new text begin Interest is payable from July 1 of the taxable year on final payments made in new text end
9.30
new text begin the following fiscal year. new text end Calculation of compensation under the agreement must specify
9.31if the revenue loss is determined before or after the allowance of each state's credit for
9.32taxes paid to the other state.
9.33(e)
new text begin (f)new text end If an agreement cannot be reached as to the amount of the loss, the
9.34commissioner of revenue and the taxing official of the state of Wisconsin shall each
9.35appoint a member of a board of arbitration and these members shall appoint the third
9.36member of the board. The board shall select one of its members as chair. Such board may
10.1administer oaths, take testimony, subpoena witnesses, and require their attendance, require
10.2the production of books, papers and documents, and hold hearings at such places as are
10.3deemed necessary. The board shall then make a determination as to the amount to be paid
10.4the other state which determination shall be final and conclusive.
10.5(f)
new text begin (g)new text end The commissioner may furnish copies of returns, reports, or other information
10.6to the taxing official of the state of Wisconsin, a member of the board of arbitration, or a
10.7consultant under joint contract with the states of Minnesota and Wisconsin for the purpose
10.8of making a determination as to the amount to be paid the other state under the provisions
10.9of this section. Prior to the release of any information under the provisions of this section,
10.10the person to whom the information is to be released shall sign an agreement which
10.11provides that the person will protect the confidentiality of the returns and information
10.12revealed thereby to the extent that it is protected under the laws of the state of Minnesota.
10.13
new text begin (h) Any reciprocity agreement entered into under this section continues in effect new text end
10.14
new text begin until terminated by Minnesota or Wisconsin law. The commissioner may agree to modify new text end
10.15
new text begin the timing or method of calculating the state payments to be made under the agreement, new text end
10.16
new text begin consistent with the requirements of paragraphs (c) and (e), but may not terminate the new text end
10.17
new text begin agreement.new text end
10.18
new text begin Subd. 2.new text end new text begin New reciprocity agreement with Wisconsin.new text end new text begin (a) The commissioner of new text end
10.19
new text begin revenue is directed to initiate negotiations with the secretary of revenue of Wisconsin, new text end
10.20
new text begin with the objective of entering into an income tax reciprocity agreement effective for tax new text end
10.21
new text begin years beginning after December 31, 2011. The agreement must satisfy the conditions of new text end
10.22
new text begin subdivision 1, with one or more estimated payment due dates and a final payment due new text end
10.23
new text begin date specified so that the state with a net revenue loss as a result of the agreement receives new text end
10.24
new text begin estimated payments from the other state, in the same fiscal year as that in which the net new text end
10.25
new text begin revenue loss occurred and a final payment with interest in the following fiscal year.new text end
10.26
new text begin (b) The commissioner may not enter into an income tax reciprocity agreement new text end
10.27
new text begin with Wisconsin under this section until after Wisconsin has paid in full with interest the new text end
10.28
new text begin amount due to Minnesota under the income tax reciprocity agreement in effect for taxable new text end
10.29
new text begin years beginning before January 1, 2010.new text end
10.30
new text begin EFFECTIVE DATE.new text end new text begin Subdivision 2 is effective the day following final enactment. new text end
10.31
new text begin The changes to subdivision 1 are effective for taxable years beginning after December 31 new text end
10.32
new text begin of the year of the agreement, contingent upon agreement from the state of Wisconsin to a new text end
10.33
new text begin reciprocity arrangement in which estimated payments are made in the same fiscal year in new text end
10.34
new text begin which a change in revenue occurs, and a final payment is made in the following fiscal year.new text end
10.35 Sec. 7. Minnesota Statutes 2010, section 290.091, subdivision 2, is amended to read:
11.1 Subd. 2.
Definitions. For purposes of the tax imposed by this section, the following
11.2terms have the meanings given:
11.3 (a) "Alternative minimum taxable income" means the sum of the following for
11.4the taxable year:
11.5 (1) the taxpayer's federal alternative minimum taxable income as defined in section
11.655(b)(2) of the Internal Revenue Code;
11.7 (2) the taxpayer's itemized deductions allowed in computing federal alternative
11.8minimum taxable income, but excluding:
11.9 (i) the charitable contribution deduction under section 170 of the Internal Revenue
11.10Code
new text begin , including any additional subtraction for charitable contributions of food inventory new text end
11.11
new text begin under section 290.01, subdivision 19bnew text end ;
11.12 (ii) the medical expense deduction;
11.13 (iii) the casualty, theft, and disaster loss deduction; and
11.14 (iv) the impairment-related work expenses of a disabled person;
11.15 (3) for depletion allowances computed under section 613A(c) of the Internal
11.16Revenue Code, with respect to each property (as defined in section 614 of the Internal
11.17Revenue Code), to the extent not included in federal alternative minimum taxable income,
11.18the excess of the deduction for depletion allowable under section 611 of the Internal
11.19Revenue Code for the taxable year over the adjusted basis of the property at the end of the
11.20taxable year (determined without regard to the depletion deduction for the taxable year);
11.21 (4) to the extent not included in federal alternative minimum taxable income, the
11.22amount of the tax preference for intangible drilling cost under section 57(a)(2) of the
11.23Internal Revenue Code determined without regard to subparagraph (E);
11.24 (5) to the extent not included in federal alternative minimum taxable income, the
11.25amount of interest income as provided by section
290.01, subdivision 19a, clause (1); and
11.26 (6) the amount of addition required by section
290.01, subdivision 19a, clauses (7)
11.27to (9), (12), (13), (16), and (17);
11.28 less the sum of the amounts determined under the following:
11.29 (1) interest income as defined in section
290.01, subdivision 19b, clause (1);
11.30 (2) an overpayment of state income tax as provided by section
290.01, subdivision
11.3119b
, clause (2), to the extent included in federal alternative minimum taxable income;
11.32 (3) the amount of investment interest paid or accrued within the taxable year on
11.33indebtedness to the extent that the amount does not exceed net investment income, as
11.34defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include
11.35amounts deducted in computing federal adjusted gross income; and
12.1 (4) amounts subtracted from federal taxable income as provided by section
290.01,
12.2subdivision 19b
, clauses (6), (8) to (15), and (17)
new text begin , and (19)new text end .
12.3 In the case of an estate or trust, alternative minimum taxable income must be
12.4computed as provided in section 59(c) of the Internal Revenue Code.
12.5 (b) "Investment interest" means investment interest as defined in section 163(d)(3)
12.6of the Internal Revenue Code.
12.7 (c) "Net minimum tax" means the minimum tax imposed by this section.
12.8 (d) "Regular tax" means the tax that would be imposed under this chapter (without
12.9regard to this section and section 290.032), reduced by the sum of the nonrefundable
12.10credits allowed under this chapter.
12.11 (e) "Tentative minimum tax" equals 6.4 percent of alternative minimum taxable
12.12income after subtracting the exemption amount determined under subdivision 3.
12.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
12.14
new text begin December 31, 2010.new text end
12.15 Sec. 8. Minnesota Statutes 2010, section 290.191, subdivision 2, is amended to read:
12.16 Subd. 2.
Apportionment formula of general application. (a) Except for those
12.17trades or businesses required to use a different formula under subdivision 3 or section
12.18290.36
, and for those trades or businesses that receive permission to use some other
12.19method under section
290.20 or under subdivision 4, a trade or business required to
12.20apportion its net income must apportion its income to this state on the basis of the
12.21percentage obtained by taking the sum of:
12.22(1) the percent for the sales factor under paragraph (b) of the percentage which
12.23the sales made within this state in connection with the trade or business during the tax
12.24period are of the total sales wherever made in connection with the trade or business during
12.25the tax period;
new text begin .new text end
12.26(2) the percent for the property factor under paragraph (b) of the percentage which
12.27the total tangible property used by the taxpayer in this state in connection with the trade or
12.28business during the tax period is of the total tangible property, wherever located, used by
12.29the taxpayer in connection with the trade or business during the tax period; and
12.30(3) the percent for the payroll factor under paragraph (b) of the percentage which
12.31the taxpayer's total payrolls paid or incurred in this state or paid in respect to labor
12.32performed in this state in connection with the trade or business during the tax period are
12.33of the taxpayer's total payrolls paid or incurred in connection with the trade or business
12.34during the tax period.
13.1(b) For purposes of paragraph (a) and subdivision 3, the following percentages apply
13.2for the taxable years specified:
13.3
13.4
Taxable years beginning
during calendar year
Sales factor
percent
Property factor
percent
Payroll factor
percent
13.5
2007
78
11
11
13.6
2008
81
9.5
9.5
13.7
2009
84
8
8
13.8
2010
87
6.5
6.5
13.9
2011
90
5
5
13.10
2012
93
3.5
3.5
13.11
2013
96
2
2
13.12
2014 and later calendar years
100
0
0
13.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
13.14
new text begin December 31, 2011.new text end
13.15 Sec. 9. Minnesota Statutes 2010, section 290.191, subdivision 3, is amended to read:
13.16 Subd. 3.
Apportionment formula for financial institutions. Except for an
13.17investment company required to apportion its income under section
290.36, a financial
13.18institution that is required to apportion its net income must apportion its net income to this
13.19state on the basis of the percentage obtained by taking the sum of:
13.20(1) the percent for the sales factor under subdivision 2, paragraph (b), of the
13.21percentage which the receipts from within this state in connection with the trade or
13.22business during the tax period are of the total receipts in connection with the trade or
13.23business during the tax period, from wherever derived;
new text begin .new text end
13.24(2) the percent for the property factor under subdivision 2, paragraph (b), of the
13.25percentage which the sum of the total tangible property used by the taxpayer in this
13.26state and the intangible property owned by the taxpayer and attributed to this state in
13.27connection with the trade or business during the tax period is of the sum of the total
13.28tangible property, wherever located, used by the taxpayer and the intangible property
13.29owned by the taxpayer and attributed to all states in connection with the trade or business
13.30during the tax period; and
13.31(3) the percent for the payroll factor under subdivision 2, paragraph (b), of the
13.32percentage which the taxpayer's total payrolls paid or incurred in this state or paid in
13.33respect to labor performed in this state in connection with the trade or business during
13.34the tax period are of the taxpayer's total payrolls paid or incurred in connection with
13.35the trade or business during the tax period.
14.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
14.2
new text begin December 31, 2011.new text end
14.3 Sec. 10. Minnesota Statutes 2010, section 291.005, subdivision 1, is amended to read:
14.4 Subdivision 1.
Scope. Unless the context otherwise clearly requires, the following
14.5terms used in this chapter shall have the following meanings:
14.6 (1) "Commissioner" means the commissioner of revenue or any person to whom the
14.7commissioner has delegated functions under this chapter.
14.8 (2) "Federal gross estate" means the gross estate of a decedent as required to be
14.9valued and otherwise determined for federal estate tax purposes under the Internal
14.10Revenue Code.
14.11 (3) "Internal Revenue Code" means the United States Internal Revenue Code of
14.121986, as amended through March 18, 2010, but without regard to the provisions of
14.13sections 501 and 901 of Public Law 107-16.
14.14 (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
14.15defined by section 2011(b)(3) of the Internal Revenue Code, increased by
new text begin plusnew text end
14.16
new text begin (i)new text end the amount of deduction for state death taxes allowed under section 2058 of
14.17the Internal Revenue Code
new text begin ; lessnew text end
14.18
new text begin (ii) (A) the value of qualified small business property under section 291.03, new text end
14.19
new text begin subdivision 9, and the value of qualified farm property under section 291.03, subdivision new text end
14.20
new text begin 10, or (B) $4,000,000, whichever is lessnew text end .
14.21 (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
14.22excluding therefrom any property included therein which has its situs outside Minnesota,
14.23and (b) including therein any property omitted from the federal gross estate which is
14.24includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
14.25authorities.
14.26 (6) "Nonresident decedent" means an individual whose domicile at the time of
14.27death was not in Minnesota.
14.28 (7) "Personal representative" means the executor, administrator or other person
14.29appointed by the court to administer and dispose of the property of the decedent. If there
14.30is no executor, administrator or other person appointed, qualified, and acting within this
14.31state, then any person in actual or constructive possession of any property having a situs in
14.32this state which is included in the federal gross estate of the decedent shall be deemed
14.33to be a personal representative to the extent of the property and the Minnesota estate tax
14.34due with respect to the property.
15.1 (8) "Resident decedent" means an individual whose domicile at the time of death
15.2was in Minnesota.
15.3 (9) "Situs of property" means, with respect to real property, the state or country in
15.4which it is located; with respect to tangible personal property, the state or country in which
15.5it was normally kept or located at the time of the decedent's death; and with respect to
15.6intangible personal property, the state or country in which the decedent was domiciled
15.7at death.
15.8
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for decedents dying after December new text end
15.9
new text begin 31, 2010.new text end
15.10 Sec. 11. Minnesota Statutes 2010, section 291.03, subdivision 1, is amended to read:
15.11 Subdivision 1.
Tax amount. (a) The tax imposed shall be an amount equal to the
15.12proportion of the maximum credit for state death taxes computed under section 2011
15.13of the Internal Revenue Code, but using Minnesota adjusted taxable estate instead of
15.14federal adjusted taxable estate, as the Minnesota gross estate bears to the value of the
15.15federal gross estate.
15.16 (b) The tax determined under this subdivision must not be greater than the sum of
15.17the following amounts multiplied by a fraction, the numerator of which is the Minnesota
15.18gross estate and the denominator of which is the federal gross estate:
15.19 (1) the rates and brackets under section 2001(c) of the Internal Revenue Code
15.20multiplied by the sum of:
15.21 (i) the taxable estate, as defined under section 2051 of the Internal Revenue Code;
15.22plus
15.23 (ii) adjusted taxable gifts, as defined in section 2001(b) of the Internal Revenue
15.24Code; less
15.25
new text begin (iii) the lesser of (A) the sum of the value of qualified small business property new text end
15.26
new text begin under subdivision 9, and the value of qualified farm property under subdivision 10, new text end
15.27
new text begin or (B) $4,000,000; lessnew text end
15.28 (2) the amount of tax allowed under section 2001(b)(2) of the Internal Revenue
15.29Code; and less
15.30 (3) the federal credit allowed under section 2010 of the Internal Revenue Code.
15.31 (c) For purposes of this subdivision, "Internal Revenue Code" means the Internal
15.32Revenue Code of 1986, as amended through December 31, 2000.
15.33
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for decedents dying after December new text end
15.34
new text begin 31, 2010.new text end
16.1 Sec. 12. Minnesota Statutes 2010, section 291.03, is amended by adding a subdivision
16.2to read:
16.3
new text begin Subd. 8.new text end new text begin Definitions.new text end new text begin (a) For purposes of this section, the following terms have the new text end
16.4
new text begin meanings given in this subdivision.new text end
16.5
new text begin (b) "Family member" means a family member as defined in section 2032A(e)(2) of new text end
16.6
new text begin the Internal Revenue Code.new text end
16.7
new text begin (c) "Qualified heir" means a family member who acquired qualified property from new text end
16.8
new text begin the decedent and satisfies the requirement under subdivision 9, clause (6), or subdivision new text end
16.9
new text begin 10, clause (4), for the property.new text end
16.10
new text begin (d) "Qualified property" means qualified small businesss property under subdivision new text end
16.11
new text begin 9 and qualified farm property under subdivision 10.new text end
16.12
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for decedents dying after December new text end
16.13
new text begin 31, 2010.new text end
16.14 Sec. 13. Minnesota Statutes 2010, section 291.03, is amended by adding a subdivision
16.15to read:
16.16
new text begin Subd. 9.new text end new text begin Qualified small business property.new text end new text begin Property satisfying all of the following new text end
16.17
new text begin requirements is qualified small business property:new text end
16.18
new text begin (1) The value of the property was included in the federal adjusted taxable estate.new text end
16.19
new text begin (2) The property consists of the assets of a trade or business or shares of stock or new text end
16.20
new text begin other ownership interests in a corporation or other entity engaged in a trade or business. new text end
16.21
new text begin The decedent or the decedent's spouse must have materially participated in the trade or new text end
16.22
new text begin business within the meaning of section 469 of the Internal Revenue Code during the new text end
16.23
new text begin taxable year that ended before the date of the decedent's death. Shares of stock in a new text end
16.24
new text begin corporation or an ownership interest in another type of entity do not qualify under this new text end
16.25
new text begin subdivision if the shares or ownership interests are traded on a public stock exchange at new text end
16.26
new text begin any time during the three-year period ending on the decedent's date of death.new text end
16.27
new text begin (3) The gross annual sales of the trade or business were $10,000,000 or less for the new text end
16.28
new text begin last taxable year that ended before the date of the death of the decedent.new text end
16.29
new text begin (4) The property does not consist of cash or cash equivalents. For property consisting new text end
16.30
new text begin of shares of stock or other ownership interests in an entity, the amount of cash or cash new text end
16.31
new text begin equivalents held by the corporation or other entity must be deducted from the value of new text end
16.32
new text begin the property qualifying under this subdivision in proportion to the decedent's share of new text end
16.33
new text begin ownership of the entity on the date of death.new text end
16.34
new text begin (5) The decedent continuously owned the property for the three-year period ending new text end
16.35
new text begin on the date of death of the decedent.new text end
17.1
new text begin (6) A family member continuously uses the property in the operation of the trade or new text end
17.2
new text begin business for three years following the date of death of the decedent.new text end
17.3
new text begin (7) The estate and the qualified heir elect to treat the property as qualified small new text end
17.4
new text begin business property and agree, in the form prescribed by the commissioner, to pay the new text end
17.5
new text begin recapture tax under subdivision 11, if applicable.new text end
17.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for decedents dying after December new text end
17.7
new text begin 31, 2010.new text end
17.8 Sec. 14. Minnesota Statutes 2010, section 291.03, is amended by adding a subdivision
17.9to read:
17.10
new text begin Subd. 10.new text end new text begin Qualified farm property.new text end new text begin Property satisfying all of the following new text end
17.11
new text begin requirements is qualified farm property:new text end
17.12
new text begin (1) The value of the property was included in the federal adjusted taxable estate.new text end
17.13
new text begin (2) The property consists of a farm meeting the requirements of section 500.24, new text end
17.14
new text begin and was classified for property tax purposes as the homestead of the decedent or the new text end
17.15
new text begin decedent's spouse or both under section 273.124, and as class 2a property under section new text end
17.16
new text begin 273.13, subdivision 23.new text end
17.17
new text begin (3) The decedent continuously owned the property for the three-year period ending new text end
17.18
new text begin on the date of death of the decedent.new text end
17.19
new text begin (4) A family member continuously uses the property in the operation of the trade or new text end
17.20
new text begin business for three years following the date of death of the decedent.new text end
17.21
new text begin (5) The estate and the qualified heir elect to treat the property as qualified farm new text end
17.22
new text begin property and agree, in a form prescribed by the commissioner, to pay the recapture tax new text end
17.23
new text begin under subdivision 11, if applicable.new text end
17.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for decedents dying after December new text end
17.25
new text begin 31, 2010.new text end
17.26 Sec. 15. Minnesota Statutes 2010, section 291.03, is amended by adding a subdivision
17.27to read:
17.28
new text begin Subd. 11.new text end new text begin Recapture tax.new text end new text begin (a) If, within three years after the decedent's death and new text end
17.29
new text begin before the death of the qualified heir, the qualified heir disposes of any interest in the new text end
17.30
new text begin qualified property, other than by a disposition to a family member, or a family member new text end
17.31
new text begin ceases to use the qualified property which was acquired or passed from the decedent, an new text end
17.32
new text begin additional estate tax is imposed on the property.new text end
18.1
new text begin (b) The amount of the additional tax equals the amount of the exclusion claimed by new text end
18.2
new text begin the estate under subdivision 8, paragraph (d), multiplied by 16 percent.new text end
18.3
new text begin (c) The additional tax under this subdivision is due on the day which is six months new text end
18.4
new text begin after the date of the disposition or cessation in paragraph (a).new text end
18.5
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for decedents dying after December new text end
18.6
new text begin 31, 2010.new text end
18.7 Sec. 16.
new text begin INCOME TAX RECIPROCITY BENCHMARK STUDY.new text end
18.8
new text begin (a) The Department of Revenue, in conjunction with the Wisconsin Department of new text end
18.9
new text begin Revenue, must conduct a study to determine at least the following:new text end
18.10
new text begin (1) the number of residents of each state who earn income from personal services in new text end
18.11
new text begin the other state;new text end
18.12
new text begin (2) the total amount of income earned by residents of each state who earn income new text end
18.13
new text begin from personal services in the other state; andnew text end
18.14
new text begin (3) the change in tax revenue in each state if an income tax reciprocity arrangement new text end
18.15
new text begin were resumed between the two states under which the taxpayers were required to pay new text end
18.16
new text begin income taxes on the income only in their state of residence.new text end
18.17
new text begin (b) The study must be conducted as soon as practicable, using information obtained new text end
18.18
new text begin from each state's income tax returns for tax year 2011, and from any other source of new text end
18.19
new text begin information the departments determine is necessary to complete the study.new text end
18.20
new text begin (c) No later than March 1, 2013, the Department of Revenue must submit a report new text end
18.21
new text begin containing the results of the study to the governor and to the chairs and ranking minority new text end
18.22
new text begin members of the legislative committees having jurisdiction over taxes.new text end
18.23
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
18.24 Sec. 17.
new text begin ESTATE TAX; STUDY.new text end
18.25
new text begin (a) The commissioner of revenue shall conduct a study of the Minnesota estate tax. new text end
18.26
new text begin The study must include at least the following elements:new text end
18.27
new text begin (1) evaluation of the estate tax using standard tax policy principles and methods of new text end
18.28
new text begin analysis;new text end
18.29
new text begin (2) consideration of the implications of recent federal estate tax changes, including new text end
18.30
new text begin the repeal of the federal credit for state death taxes, the increase in the federal exclusion new text end
18.31
new text begin amount, and the portability of the federal exclusion, for state estate and inheritance taxes;new text end
19.1
new text begin (3) consideration of the advantages and disadvantages of revenue neutral alternatives new text end
19.2
new text begin to the estate tax, such as an inheritance tax, a complementary gift tax, or imposition of new text end
19.3
new text begin the income tax on bequests; andnew text end
19.4
new text begin (4) analysis of the available empirical evidence on the effects of the present and new text end
19.5
new text begin alternative tax structures of a Minnesota tax on estates or inheritances on domicile and new text end
19.6
new text begin migration decisions of residents and the implications for state revenues.new text end
19.7
new text begin (b) In preparing the study, the commissioner shall consult with and seek advice from new text end
19.8
new text begin the probate and estate section of the Minnesota State Bar Association.new text end
19.9
new text begin (c) By February 1, 2012, the commissioner shall submit a report to the chairs and new text end
19.10
new text begin ranking minority members of the house of representatives and senate committees with new text end
19.11
new text begin jurisdiction over taxation, of the findings of the study and identification of issues for policy new text end
19.12
new text begin makers to consider in deciding whether to revise, reform, replace, or repeal the estate tax.new text end
19.13 Sec. 18.
new text begin APPROPRIATIONS.new text end
19.14
new text begin $291,000 in fiscal year 2012 and $314,000 in fiscal year 2013 are appropriated from new text end
19.15
new text begin the general fund to the commissioner of revenue for the income reciprocity benchmark new text end
19.16
new text begin study required under section 16. The appropriation under this section is onetime and new text end
19.17
new text begin is not added to the agency's base budget.new text end
19.18
ARTICLE 2
19.19
FEDERAL UPDATE
19.20 Section 1. Minnesota Statutes 2010, section 289A.02, subdivision 7, as amended by
19.21Laws 2011, chapter 8, section 1, is amended to read:
19.22 Subd. 7.
Internal Revenue Code. Unless specifically defined otherwise, for taxable
19.23years beginning before January 1, 2010, and after December 31, 2010, "Internal Revenue
19.24Code" means the Internal Revenue Code of 1986, as amended through March 18, 2010;
19.25and for taxable years beginning after December 31, 2009, and before January 1, 2011,
19.26"Internal Revenue Code" means the Internal Revenue Code of 1986, as amended through
19.27December 31, 2010.
19.28
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment for new text end
19.29
new text begin taxable years beginning after December 31, 2009.new text end
19.30 Sec. 2. Minnesota Statutes 2010, section 290.01, subdivision 19, as amended by Laws
19.312011, chapter 8, section 2, is amended to read:
19.32 Subd. 19.
Net income. The term "net income" means the federal taxable income,
19.33as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
20.1date named in this subdivision, incorporating the federal effective dates of changes to the
20.2Internal Revenue Code and any elections made by the taxpayer in accordance with the
20.3Internal Revenue Code in determining federal taxable income for federal income tax
20.4purposes, and with the modifications provided in subdivisions 19a to 19f.
20.5 In the case of a regulated investment company or a fund thereof, as defined in section
20.6851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
20.7company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
20.8except that:
20.9 (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
20.10Revenue Code does not apply;
20.11 (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
20.12Revenue Code must be applied by allowing a deduction for capital gain dividends and
20.13exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
20.14Revenue Code; and
20.15 (3) the deduction for dividends paid must also be applied in the amount of any
20.16undistributed capital gains which the regulated investment company elects to have treated
20.17as provided in section 852(b)(3)(D) of the Internal Revenue Code.
20.18 The net income of a real estate investment trust as defined and limited by section
20.19856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
20.20taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
20.21 The net income of a designated settlement fund as defined in section 468B(d) of
20.22the Internal Revenue Code means the gross income as defined in section 468B(b) of the
20.23Internal Revenue Code.
20.24 The Internal Revenue Code of 1986, as amended through March 18
new text begin December 31new text end ,
20.252010, shall be in effect for taxable years beginning after December 31, 1996, except
20.26that for taxable years beginning after December 31, 2009, and before January 1, 2011,
20.27"Internal Revenue Code" means the Internal Revenue Code of 1986, as amended through
20.28December 31, 2010. The provisions of the act of January 22, 2010, Public Law 111-126,
20.29to accelerate the benefits for charitable cash contributions for the relief of victims of the
20.30Haitian earthquake, are effective at the same time it became effective for federal purposes
20.31and apply to the subtraction under subdivision 19b, clause (6). The provisions of title II,
20.32section 2112, of the act of September 27, 2010, Public Law 111-240, rollovers from
20.33elective deferral plans to designated Roth accounts, are effective at the same time they
20.34became effective for federal purposes and taxable rollovers are included in net income at
20.35the same time they are included in gross income for federal purposes.
21.1 Except as otherwise provided, references to the Internal Revenue Code in
21.2subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
21.3the applicable year.
21.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment, new text end
21.5
new text begin except that the changes incorporated by federal changes are effective at the same time as new text end
21.6
new text begin the changes were effective for federal purposes.new text end
21.7 Sec. 3. Minnesota Statutes 2010, section 290.01, subdivision 19a, as amended by Laws
21.82011, chapter 8, section 3, is amended to read:
21.9 Subd. 19a.
Additions to federal taxable income. For individuals, estates, and
21.10trusts, there shall be added to federal taxable income:
21.11 (1)(i) interest income on obligations of any state other than Minnesota or a political
21.12or governmental subdivision, municipality, or governmental agency or instrumentality
21.13of any state other than Minnesota exempt from federal income taxes under the Internal
21.14Revenue Code or any other federal statute; and
21.15 (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
21.16Code, except:
21.17(A) the portion of the exempt-interest dividends exempt from state taxation under
21.18the laws of the United States; and
21.19(B) the portion of the exempt-interest dividends derived from interest income
21.20on obligations of the state of Minnesota or its political or governmental subdivisions,
21.21municipalities, governmental agencies or instrumentalities, but only if the portion of the
21.22exempt-interest dividends from such Minnesota sources paid to all shareholders represents
21.2395 percent or more of the exempt-interest dividends, including any dividends exempt
21.24under subitem (A), that are paid by the regulated investment company as defined in section
21.25851(a) of the Internal Revenue Code, or the fund of the regulated investment company as
21.26defined in section 851(g) of the Internal Revenue Code, making the payment; and
21.27 (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
21.28government described in section 7871(c) of the Internal Revenue Code shall be treated as
21.29interest income on obligations of the state in which the tribe is located;
21.30 (2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid
21.31or accrued within the taxable year under this chapter and the amount of taxes based on
21.32net income paid, sales and use, motor vehicle sales, or excise taxes paid to any other
21.33state or to any province or territory of Canada, to the extent allowed as a deduction
21.34under section 63(d) of the Internal Revenue Code, but the addition may not be more
21.35than the amount by which the itemized deductions as allowed under section 63(d) of
22.1the Internal Revenue Code exceeds the amount of the standard deduction as defined in
22.2section 63(c) of the Internal Revenue Code, disregarding the amounts allowed under
22.3sections 63(c)(1)(C) and 63(c)(1)(E) of the Internal Revenue Code. For the purpose of
22.4this paragraph, the disallowance of itemized deductions under section 68 of the Internal
22.5Revenue Code of 1986, income, sales and use, motor vehicle sales, or excise taxes are
22.6the last itemized deductions disallowed;
22.7 (3) the capital gain amount of a lump-sum distribution to which the special tax under
22.8section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;
22.9 (4) the amount of income taxes paid or accrued within the taxable year under this
22.10chapter and taxes based on net income paid to any other state or any province or territory
22.11of Canada, to the extent allowed as a deduction in determining federal adjusted gross
22.12income. For the purpose of this paragraph, income taxes do not include the taxes imposed
22.13by sections
290.0922, subdivision 1, paragraph (b),
290.9727,
290.9728, and
290.9729;
22.14 (5) the amount of expense, interest, or taxes disallowed pursuant to section
290.10
22.15other than expenses or interest used in computing net interest income for the subtraction
22.16allowed under subdivision 19b, clause (1);
22.17 (6) the amount of a partner's pro rata share of net income which does not flow
22.18through to the partner because the partnership elected to pay the tax on the income under
22.19section 6242(a)(2) of the Internal Revenue Code;
22.20 (7) 80 percent of the depreciation deduction allowed under section 168(k) of the
22.21Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
22.22in the taxable year generates a deduction for depreciation under section 168(k) and the
22.23activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
22.24the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
22.25limited to excess of the depreciation claimed by the activity under section 168(k) over the
22.26amount of the loss from the activity that is not allowed in the taxable year. In succeeding
22.27taxable years when the losses not allowed in the taxable year are allowed, the depreciation
22.28under section 168(k) is allowed;
22.29 (8) 80 percent of the amount by which the deduction allowed by section 179 of the
22.30Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
22.31Revenue Code of 1986, as amended through December 31, 2003;
22.32 (9) to the extent deducted in computing federal taxable income, the amount of the
22.33deduction allowable under section 199 of the Internal Revenue Code;
22.34 (10)
new text begin for taxable years beginning before January 1, 2013, new text end the exclusion allowed
22.35under section 139A of the Internal Revenue Code for federal subsidies for prescription
22.36drug plans;
23.1(11) the amount of expenses disallowed under section 290.10, subdivision 2;
23.2 (12) for taxable years beginning before January 1, 2010, and after December 31,
23.32010, the amount deducted for qualified tuition and related expenses under section 222 of
23.4the Internal Revenue Code, to the extent deducted from gross income;
23.5 (13) for taxable years beginning before January 1, 2010, and after December 31,
23.62010, the amount deducted for certain expenses of elementary and secondary school
23.7teachers under section 62(a)(2)(D) of the Internal Revenue Code, to the extent deducted
23.8from gross income;
23.9(14) the additional standard deduction for property taxes payable that is allowable
23.10under section 63(c)(1)(C) of the Internal Revenue Code;
23.11(15) the additional standard deduction for qualified motor vehicle sales taxes
23.12allowable under section 63(c)(1)(E) of the Internal Revenue Code;
23.13(16) discharge of indebtedness income resulting from reacquisition of business
23.14indebtedness and deferred under section 108(i) of the Internal Revenue Code; and
23.15(17) the amount of unemployment compensation exempt from tax under section
23.1685(c) of the Internal Revenue Code.
new text begin ;new text end
23.17
new text begin (18) to the extent included in the computation of federal taxable income in taxable new text end
23.18
new text begin years beginning after December 31, 2010, the amount of disallowed itemized deductions;new text end
23.19
new text begin (i) The amount of disallowed itemized deductions is equal to the lesser of:new text end
23.20
new text begin (A) three percent of the excess of the taxpayer's federal adjusted gross income new text end
23.21
new text begin over the applicable amount; or new text end
23.22
new text begin (B) 80 percent of the amount of the itemized deductions otherwise allowable to the new text end
23.23
new text begin taxpayer under the Internal Revenue Code for the taxable year.new text end
23.24
new text begin (ii) The term "applicable amount" means $100,000, or $50,000 in the case of a new text end
23.25
new text begin married individual filing a separate return. Each dollar amount shall be increased by new text end
23.26
new text begin an amount equal to:new text end
23.27
new text begin (A) such dollar amount, multiplied by new text end
23.28
new text begin (B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal new text end
23.29
new text begin Revenue Code for the calendar year in which the taxable year begins, by substituting new text end
23.30
new text begin "calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof.new text end
23.31
new text begin (iii) The term "itemized deductions" does not include:new text end
23.32
new text begin (A) the deduction for medical expenses under section 213 of the Internal Revenue new text end
23.33
new text begin Code;new text end
23.34
new text begin (B) any deduction for investment interest as defined in section 163(d) of the Internal new text end
23.35
new text begin Revenue Code; andnew text end
24.1
new text begin (C) the deduction under section 165(a) of the Internal Revenue Code for casualty or new text end
24.2
new text begin theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue new text end
24.3
new text begin Code or for losses described in section 165(d) of the Internal Revenue Code;new text end
24.4
new text begin (19) to the extent included in federal taxable income in taxable years beginning after new text end
24.5
new text begin December 31, 2010, the amount of disallowed personal exemptions for taxpayers with new text end
24.6
new text begin federal adjusted gross income over the threshold amount;new text end
24.7
new text begin (i) The disallowed personal exemption amount is equal to the dollar amount of the new text end
24.8
new text begin personal exemptions claimed by the taxpayer in the computation of federal taxable income new text end
24.9
new text begin multiplied by the applicable percentage.new text end
24.10
new text begin (ii) "Applicable percentage" means two percentage points for each $2,500 (or new text end
24.11
new text begin fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable new text end
24.12
new text begin year exceeds the threshold amount. In the case of a married individual filing a separate new text end
24.13
new text begin return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In no new text end
24.14
new text begin event shall the applicable percentage exceed 100 percent.new text end
24.15
new text begin (iii) The term "threshold amount" means:new text end
24.16
new text begin (A) $150,000 in the case of a joint return or a surviving spouse;new text end
24.17
new text begin (B) $125,000 in the case of a head of a household;new text end
24.18
new text begin (C) $100,000 in the case of an individual who is not married and who is not a new text end
24.19
new text begin surviving spouse or head of a household; andnew text end
24.20
new text begin (D) $75,000 in the case of a married individual filing a separate return.new text end
24.21
new text begin (iv) The thresholds shall be increased by an amount equal to:new text end
24.22
new text begin (A) such dollar amount, multiplied bynew text end
24.23
new text begin (B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal new text end
24.24
new text begin Revenue Code for the calendar year in which the taxable year begins, by substituting new text end
24.25
new text begin "calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; andnew text end
24.26
new text begin (20) for taxable years beginning after December 31, 2010, the amount deducted for new text end
24.27
new text begin employer-provided educational assistance programs under section 127 of the Internal new text end
24.28
new text begin Revenue Code.new text end
24.29
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
24.30
new text begin December 31, 2010, except that the change to clause (10) is effective the day following new text end
24.31
new text begin final enactment.new text end
24.32 Sec. 4. Minnesota Statutes 2010, section 290.01, subdivision 19c, as amended by Laws
24.332011, chapter 8, section 4, is amended to read:
24.34 Subd. 19c.
Corporations; additions to federal taxable income. For corporations,
24.35there shall be added to federal taxable income:
25.1 (1) the amount of any deduction taken for federal income tax purposes for income,
25.2excise, or franchise taxes based on net income or related minimum taxes, including but not
25.3limited to the tax imposed under section
290.0922, paid by the corporation to Minnesota,
25.4another state, a political subdivision of another state, the District of Columbia, or any
25.5foreign country or possession of the United States;
25.6 (2) interest not subject to federal tax upon obligations of: the United States, its
25.7possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
25.8state, any of its political or governmental subdivisions, any of its municipalities, or any
25.9of its governmental agencies or instrumentalities; the District of Columbia; or Indian
25.10tribal governments;
25.11 (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
25.12Revenue Code;
25.13 (4) the amount of any net operating loss deduction taken for federal income tax
25.14purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
25.15deduction under section 810 of the Internal Revenue Code;
25.16 (5) the amount of any special deductions taken for federal income tax purposes
25.17under sections 241 to 247 and 965 of the Internal Revenue Code;
25.18 (6) losses from the business of mining, as defined in section
290.05, subdivision 1,
25.19clause (a), that are not subject to Minnesota income tax;
25.20 (7) the amount of any capital losses deducted for federal income tax purposes under
25.21sections 1211 and 1212 of the Internal Revenue Code;
25.22 (8) the exempt foreign trade income of a foreign sales corporation under sections
25.23921(a) and 291 of the Internal Revenue Code;
25.24 (9) the amount of percentage depletion deducted under sections 611 through 614 and
25.25291 of the Internal Revenue Code;
25.26 (10) for certified pollution control facilities placed in service in a taxable year
25.27beginning before December 31, 1986, and for which amortization deductions were elected
25.28under section 169 of the Internal Revenue Code of 1954, as amended through December
25.2931, 1985, the amount of the amortization deduction allowed in computing federal taxable
25.30income for those facilities;
25.31 (11) the amount of any deemed dividend from a foreign operating corporation
25.32determined pursuant to section
290.17, subdivision 4, paragraph (g). The deemed dividend
25.33shall be reduced by the amount of the addition to income required by clauses (20), (21),
25.34(22), and (23);
26.1 (12) the amount of a partner's pro rata share of net income which does not flow
26.2through to the partner because the partnership elected to pay the tax on the income under
26.3section 6242(a)(2) of the Internal Revenue Code;
26.4 (13) the amount of net income excluded under section 114 of the Internal Revenue
26.5Code;
26.6 (14) any increase in subpart F income, as defined in section 952(a) of the Internal
26.7Revenue Code, for the taxable year when subpart F income is calculated without regard to
26.8the provisions of Division C, title III, section 303(b) of Public Law 110-343;
26.9 (15) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A)
26.10and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer
26.11has an activity that in the taxable year generates a deduction for depreciation under
26.12section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year
26.13that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed
26.14under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the
26.15depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the
26.16amount of the loss from the activity that is not allowed in the taxable year. In succeeding
26.17taxable years when the losses not allowed in the taxable year are allowed, the depreciation
26.18under section 168(k)(1)(A) and (k)(4)(A) is allowed;
26.19 (16) 80 percent of the amount by which the deduction allowed by section 179 of the
26.20Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
26.21Revenue Code of 1986, as amended through December 31, 2003;
26.22 (17) to the extent deducted in computing federal taxable income, the amount of the
26.23deduction allowable under section 199 of the Internal Revenue Code;
26.24 (18)
new text begin for taxable years beginning before January 1, 2013, new text end the exclusion allowed
26.25under section 139A of the Internal Revenue Code for federal subsidies for prescription
26.26drug plans;
26.27 (19) the amount of expenses disallowed under section
290.10, subdivision 2;
26.28 (20) an amount equal to the interest and intangible expenses, losses, and costs paid,
26.29accrued, or incurred by any member of the taxpayer's unitary group to or for the benefit
26.30of a corporation that is a member of the taxpayer's unitary business group that qualifies
26.31as a foreign operating corporation. For purposes of this clause, intangible expenses and
26.32costs include:
26.33 (i) expenses, losses, and costs for, or related to, the direct or indirect acquisition,
26.34use, maintenance or management, ownership, sale, exchange, or any other disposition of
26.35intangible property;
27.1 (ii) losses incurred, directly or indirectly, from factoring transactions or discounting
27.2transactions;
27.3 (iii) royalty, patent, technical, and copyright fees;
27.4 (iv) licensing fees; and
27.5 (v) other similar expenses and costs.
27.6For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
27.7applications, trade names, trademarks, service marks, copyrights, mask works, trade
27.8secrets, and similar types of intangible assets.
27.9This clause does not apply to any item of interest or intangible expenses or costs paid,
27.10accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect
27.11to such item of income to the extent that the income to the foreign operating corporation
27.12is income from sources without the United States as defined in subtitle A, chapter 1,
27.13subchapter N, part 1, of the Internal Revenue Code;
27.14 (21) except as already included in the taxpayer's taxable income pursuant to clause
27.15(20), any interest income and income generated from intangible property received or
27.16accrued by a foreign operating corporation that is a member of the taxpayer's unitary
27.17group. For purposes of this clause, income generated from intangible property includes:
27.18 (i) income related to the direct or indirect acquisition, use, maintenance or
27.19management, ownership, sale, exchange, or any other disposition of intangible property;
27.20 (ii) income from factoring transactions or discounting transactions;
27.21 (iii) royalty, patent, technical, and copyright fees;
27.22 (iv) licensing fees; and
27.23 (v) other similar income.
27.24For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
27.25applications, trade names, trademarks, service marks, copyrights, mask works, trade
27.26secrets, and similar types of intangible assets.
27.27This clause does not apply to any item of interest or intangible income received or accrued
27.28by a foreign operating corporation with respect to such item of income to the extent that
27.29the income is income from sources without the United States as defined in subtitle A,
27.30chapter 1, subchapter N, part 1, of the Internal Revenue Code;
27.31 (22) the dividends attributable to the income of a foreign operating corporation that
27.32is a member of the taxpayer's unitary group in an amount that is equal to the dividends
27.33paid deduction of a real estate investment trust under section 561(a) of the Internal
27.34Revenue Code for amounts paid or accrued by the real estate investment trust to the
27.35foreign operating corporation;
28.1 (23) the income of a foreign operating corporation that is a member of the taxpayer's
28.2unitary group in an amount that is equal to gains derived from the sale of real or personal
28.3property located in the United States;
28.4 (24) for taxable years beginning before January 1, 2010, and after December 31,
28.52010, the additional amount allowed as a deduction for donation of computer technology
28.6and equipment under section 170(e)(6) of the Internal Revenue Code, to the extent
28.7deducted from taxable income; and
28.8(25) discharge of indebtedness income resulting from reacquisition of business
28.9indebtedness and deferred under section 108(i) of the Internal Revenue Code.
28.10
new text begin EFFECTIVE DATE.new text end new text begin The change to clause (24) is effective for taxable years new text end
28.11
new text begin beginning after December 31, 2010. The change to clause (18) is effective the day new text end
28.12
new text begin following final enactment.new text end
28.13 Sec. 5. Minnesota Statutes 2010, section 290.01, subdivision 31, as amended by Laws
28.142011, chapter 8, section 5, is amended to read:
28.15 Subd. 31.
Internal Revenue Code. Unless specifically defined otherwise, for
28.16taxable years beginning before January 1, 2010, and after December 31, 2010, "Internal
28.17Revenue Code" means the Internal Revenue Code of 1986, as amended through March
28.1818
new text begin December 31new text end , 2010; and for taxable years beginning after December 31, 2009, and
28.19before January 1, 2011, "Internal Revenue Code" means the Internal Revenue Code of
28.201986, as amended through December 31, 2010. Internal Revenue Code also includes any
28.21uncodified provision in federal law that relates to provisions of the Internal Revenue
28.22Code that are incorporated into Minnesota law.
new text begin When used in this chapter, the reference new text end
28.23
new text begin to "subtitle A, chapter 1, subchapter N, part 1, of the Internal Revenue Code" is to the new text end
28.24
new text begin Internal Revenue Code as amended through March 18, 2010.new text end
28.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment, new text end
28.26
new text begin except the changes incorporated by federal changes are effective at the same time as the new text end
28.27
new text begin changes were effective for federal purposes.new text end
28.28 Sec. 6. Minnesota Statutes 2010, section 290.06, subdivision 2c, is amended to read:
28.29 Subd. 2c.
Schedules of rates for individuals, estates, and trusts. (a) The income
28.30taxes imposed by this chapter upon married individuals filing joint returns and surviving
28.31spouses as defined in section 2(a) of the Internal Revenue Code must be computed by
28.32applying to their taxable net income the following schedule of rates:
28.33 (1) On the first $25,680, 5.35 percent;
29.1 (2) On all over $25,680, but not over $102,030, 7.05 percent;
29.2 (3) On all over $102,030, 7.85 percent.
29.3 Married individuals filing separate returns, estates, and trusts must compute their
29.4income tax by applying the above rates to their taxable income, except that the income
29.5brackets will be one-half of the above amounts.
29.6 (b) The income taxes imposed by this chapter upon unmarried individuals must be
29.7computed by applying to taxable net income the following schedule of rates:
29.8 (1) On the first $17,570, 5.35 percent;
29.9 (2) On all over $17,570, but not over $57,710, 7.05 percent;
29.10 (3) On all over $57,710, 7.85 percent.
29.11 (c) The income taxes imposed by this chapter upon unmarried individuals qualifying
29.12as a head of household as defined in section 2(b) of the Internal Revenue Code must be
29.13computed by applying to taxable net income the following schedule of rates:
29.14 (1) On the first $21,630, 5.35 percent;
29.15 (2) On all over $21,630, but not over $86,910, 7.05 percent;
29.16 (3) On all over $86,910, 7.85 percent.
29.17 (d) In lieu of a tax computed according to the rates set forth in this subdivision, the
29.18tax of any individual taxpayer whose taxable net income for the taxable year is less than
29.19an amount determined by the commissioner must be computed in accordance with tables
29.20prepared and issued by the commissioner of revenue based on income brackets of not
29.21more than $100. The amount of tax for each bracket shall be computed at the rates set
29.22forth in this subdivision, provided that the commissioner may disregard a fractional part of
29.23a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.
29.24 (e) An individual who is not a Minnesota resident for the entire year must compute
29.25the individual's Minnesota income tax as provided in this subdivision. After the
29.26application of the nonrefundable credits provided in this chapter, the tax liability must
29.27then be multiplied by a fraction in which:
29.28 (1) the numerator is the individual's Minnesota source federal adjusted gross income
29.29as defined in section 62 of the Internal Revenue Code and increased by the additions
29.30required under section
290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12),
29.31(13), (16), and (17),
new text begin and (20), new text end and reduced by the Minnesota assignable portion of the
29.32subtraction for United States government interest under section
290.01, subdivision 19b,
29.33clause (1), and the subtractions under section
290.01, subdivision 19b, clauses (8), (9),
29.34(13), (14), (15), and (17), after applying the allocation and assignability provisions of
29.35section
290.081, clause (a), or
290.17; and
30.1 (2) the denominator is the individual's federal adjusted gross income as defined in
30.2section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
30.3section
290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), (13), (16), and
30.4(17),
new text begin and (20), new text end and reduced by the amounts specified in section
290.01, subdivision 19b,
30.5clauses (1), (8), (9), (13), (14), (15), and (17).
30.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
30.7
new text begin December 31, 2010.new text end
30.8 Sec. 7. Minnesota Statutes 2010, section 290A.03, subdivision 15, as amended by
30.9Laws 2011, chapter 8, section 6, is amended to read:
30.10 Subd. 15.
Internal Revenue Code. For taxable years beginning before January 1,
30.112010, and after December 31, 2010, "Internal Revenue Code" means the Internal Revenue
30.12Code of 1986, as amended through March 18
new text begin December 31new text end , 2010; and for taxable years
30.13beginning after December 31, 2009, and before January 1, 2011, "Internal Revenue Code"
30.14means the Internal Revenue Code of 1986, as amended through December 31, 2010.
30.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for property tax refunds based on new text end
30.16
new text begin property taxes payable on or after December 31, 2011, and rent paid on or after December new text end
30.17
new text begin 31, 2010.new text end
30.18 Sec. 8. Minnesota Statutes 2010, section 291.005, subdivision 1, is amended to read:
30.19 Subdivision 1.
Scope. Unless the context otherwise clearly requires, the following
30.20terms used in this chapter shall have the following meanings:
30.21 (1) "Commissioner" means the commissioner of revenue or any person to whom the
30.22commissioner has delegated functions under this chapter.
30.23 (2) "Federal gross estate" means the gross estate of a decedent as required to be
30.24valued and otherwise determined for federal estate tax purposes under the Internal
30.25Revenue Code.
30.26 (3) "Internal Revenue Code" means the United States Internal Revenue Code of
30.271986, as amended through March 18
new text begin December 31new text end , 2010, but without regard to the
30.28provisions of sections 501 and 901 of Public Law 107-16
new text begin , as amended by Public Law new text end
30.29
new text begin 111-312, and section 301(c) of Public Law 111-312new text end .
30.30 (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
30.31defined by section 2011(b)(3) of the Internal Revenue Code, increased by the amount of
30.32deduction for state death taxes allowed under section 2058 of the Internal Revenue Code.
31.1 (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
31.2excluding therefrom any property included therein which has its situs outside Minnesota,
31.3and (b) including therein any property omitted from the federal gross estate which is
31.4includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
31.5authorities.
31.6 (6) "Nonresident decedent" means an individual whose domicile at the time of
31.7death was not in Minnesota.
31.8 (7) "Personal representative" means the executor, administrator or other person
31.9appointed by the court to administer and dispose of the property of the decedent. If there
31.10is no executor, administrator or other person appointed, qualified, and acting within this
31.11state, then any person in actual or constructive possession of any property having a situs in
31.12this state which is included in the federal gross estate of the decedent shall be deemed
31.13to be a personal representative to the extent of the property and the Minnesota estate tax
31.14due with respect to the property.
31.15 (8) "Resident decedent" means an individual whose domicile at the time of death
31.16was in Minnesota.
31.17 (9) "Situs of property" means, with respect to real property, the state or country in
31.18which it is located; with respect to tangible personal property, the state or country in which
31.19it was normally kept or located at the time of the decedent's death; and with respect to
31.20intangible personal property, the state or country in which the decedent was domiciled
31.21at death.
31.22
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
31.23
ARTICLE 3
31.24
SALES AND USE TAXES
31.25 Section 1. Minnesota Statutes 2010, section 289A.20, subdivision 4, is amended to
31.26read:
31.27 Subd. 4.
Sales and use tax. (a) The taxes imposed by chapter 297A are due and
31.28payable to the commissioner monthly on or before the 20th day of the month following
31.29the month in which the taxable event occurred, or following another reporting period
31.30as the commissioner prescribes or as allowed under section
289A.18, subdivision 4,
31.31paragraph (f) or (g), except that:
31.32(1) use taxes due on an annual use tax return as provided under section
289A.11,
31.33subdivision 1
, are payable by April 15 following the close of the calendar year; and
new text begin .new text end
31.34(2) except as provided in paragraph (f), for a vendor having a liability of $120,000
31.35or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes
32.1imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the
32.2commissioner monthly in the following manner:
32.3(i) On or before the 14th day of the month following the month in which the taxable
32.4event occurred, the vendor must remit to the commissioner 90 percent of the estimated
32.5liability for the month in which the taxable event occurred.
32.6(ii) On or before the 20th day of the month in which the taxable event occurs, the
32.7vendor must remit to the commissioner a prepayment for the month in which the taxable
32.8event occurs equal to 67 percent of the liability for the previous month.
32.9(iii) On or before the 20th day of the month following the month in which the taxable
32.10event occurred, the vendor must pay any additional amount of tax not previously remitted
32.11under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than
32.12the vendor's liability for the month in which the taxable event occurred, the vendor may
32.13take a credit against the next month's liability in a manner prescribed by the commissioner.
32.14(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to
32.15continue to make payments in the same manner, as long as the vendor continues having a
32.16liability of $120,000 or more during the most recent fiscal year ending June 30.
32.17(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required
32.18payment in the first month that the vendor is required to make a payment under either item
32.19(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make
32.20subsequent monthly payments in the manner provided in item (ii).
32.21(vi) For vendors making an accelerated payment under item (ii), for the first month
32.22that the vendor is required to make the accelerated payment, on the 20th of that month, the
32.23vendor will pay 100 percent of the liability for the previous month and a prepayment for
32.24the first month equal to 67 percent of the liability for the previous month.
32.25 (b) Notwithstanding paragraph (a), A vendor having a liability of $120,000 or more
32.26during a fiscal year ending June 30 must remit the June liability for the next year in the
32.27following manner:
32.28 (1) Two business days before June 30 of the year, the vendor must remit 90 percent
32.29of the estimated June liability to the commissioner.
32.30 (2) On or before August 20 of the year, the vendor must pay any additional amount
32.31of tax not remitted in June.
32.32 (c) A vendor having a liability of:
32.33 (1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30,
32.342009, and fiscal years thereafter, must remit by electronic means all liabilities on returns
32.35due for periods beginning in the subsequent calendar year on or before the 20th day of
32.36the month following the month in which the taxable event occurred, or on or before the
33.120th day of the month following the month in which the sale is reported under section
33.2289A.18, subdivision 4
; or
33.3(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years
33.4thereafter, must remit by electronic means all liabilities in the manner provided in
33.5paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar
33.6year, except for 90 percent of the estimated June liability, which is due two business days
33.7before June 30. The remaining amount of the June liability is due on August 20.
33.8(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's
33.9religious beliefs from paying electronically shall be allowed to remit the payment by mail.
33.10The filer must notify the commissioner of revenue of the intent to pay by mail before
33.11doing so on a form prescribed by the commissioner. No extra fee may be charged to a
33.12person making payment by mail under this paragraph. The payment must be postmarked
33.13at least two business days before the due date for making the payment in order to be
33.14considered paid on a timely basis.
33.15(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed
33.16under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the
33.17chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and
33.18paid with the chapter 297A taxes, then the payment of all the liabilities on the return must
33.19be accelerated as provided in this subdivision.
33.20(f) At the start of the first calendar quarter at least 90 days after the cash flow
33.21account established in section
16A.152, subdivision 1, and the budget reserve account
33.22established in section
16A.152, subdivision 1a, reach the amounts listed in section
33.23
16A.152, subdivision 2, paragraph (a), the remittance of the accelerated payments required
33.24under paragraph (a), clause (2), must be suspended. The commissioner of management
33.25and budget shall notify the commissioner of revenue when the accounts have reached
33.26the required amounts. Beginning with the suspension of paragraph (a), clause (2), for a
33.27vendor with a liability of $120,000 or more during a fiscal year ending June 30, 2009,
33.28and fiscal years thereafter, the taxes imposed by chapter 297A are due and payable to the
33.29commissioner on the 20th day of the month following the month in which the taxable
33.30event occurred. Payments of tax liabilities for taxable events occurring in June under
33.31paragraph (b) are not changed.
33.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes due and payable after new text end
33.33
new text begin July 1, 2011.new text end
33.34 Sec. 2. Minnesota Statutes 2010, section 297A.61, subdivision 3, is amended to read:
34.1 Subd. 3.
Sale and purchase. (a) "Sale" and "purchase" include, but are not limited
34.2to, each of the transactions listed in this subdivision.
34.3 (b) Sale and purchase include:
34.4 (1) any transfer of title or possession, or both, of tangible personal property, whether
34.5absolutely or conditionally, for a consideration in money or by exchange or barter; and
34.6 (2) the leasing of or the granting of a license to use or consume, for a consideration
34.7in money or by exchange or barter, tangible personal property, other than a manufactured
34.8home used for residential purposes for a continuous period of 30 days or more.
34.9 (c) Sale and purchase include the production, fabrication, printing, or processing of
34.10tangible personal property for a consideration for consumers who furnish either directly or
34.11indirectly the materials used in the production, fabrication, printing, or processing.
34.12 (d) Sale and purchase include the preparing for a consideration of food.
34.13Notwithstanding section
297A.67, subdivision 2, taxable food includes, but is not limited
34.14to, the following:
34.15 (1) prepared food sold by the retailer;
34.16 (2) soft drinks;
34.17 (3) candy;
34.18 (4) dietary supplements; and
34.19 (5) all food sold through vending machines.
34.20 (e) A sale and a purchase includes the furnishing for a consideration of electricity,
34.21gas, water, or steam for use or consumption within this state.
34.22 (f) A sale and a purchase includes the transfer for a consideration of prewritten
34.23computer software whether delivered electronically, by load and leave, or otherwise.
34.24 (g) A sale and a purchase includes the furnishing for a consideration of the following
34.25services:
34.26 (1) the privilege of admission to places of amusement, recreational areas, or athletic
34.27events, and the making available of amusement devices, tanning facilities, reducing
34.28salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;
34.29 (2) lodging and related services by a hotel, rooming house, resort, campground,
34.30motel, or trailer camp, including furnishing the guest of the facility with access to
34.31telecommunication services, and the granting of any similar license to use real property
34.32in a specific facility, other than the renting or leasing of it for a continuous period of
34.3330 days or more under an enforceable written agreement that may not be terminated
34.34without prior notice;
34.35 (3) nonresidential parking services, whether on a contractual, hourly, or other
34.36periodic basis, except for parking at a meter;
35.1 (4) the granting of membership in a club, association, or other organization if:
35.2 (i) the club, association, or other organization makes available for the use of its
35.3members sports and athletic facilities, without regard to whether a separate charge is
35.4assessed for use of the facilities; and
35.5 (ii) use of the sports and athletic facility is not made available to the general public
35.6on the same basis as it is made available to members.
35.7Granting of membership means both onetime initiation fees and periodic membership
35.8dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and
35.9squash courts; basketball and volleyball facilities; running tracks; exercise equipment;
35.10swimming pools; and other similar athletic or sports facilities;
35.11 (5) delivery of aggregate materials by a third party, excluding delivery of aggregate
35.12material used in road construction, and delivery of concrete block by a third party if
35.13the delivery would be subject to the sales tax if provided by the seller of the concrete
35.14block; and
35.15 (6) services as provided in this clause:
35.16 (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
35.17and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
35.18drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
35.19include services provided by coin operated facilities operated by the customer;
35.20 (ii) motor vehicle washing, waxing, and cleaning services, including services
35.21provided by coin operated facilities operated by the customer, and rustproofing,
35.22undercoating, and towing of motor vehicles;
35.23 (iii) building and residential cleaning, maintenance, and disinfecting services and
35.24pest control and exterminating services;
35.25 (iv) detective, security, burglar, fire alarm, and armored car services; but not
35.26including services performed within the jurisdiction they serve by off-duty licensed peace
35.27officers as defined in section
626.84, subdivision 1, or services provided by a nonprofit
35.28organization for monitoring and electronic surveillance of persons placed on in-home
35.29detention pursuant to court order or under the direction of the Minnesota Department
35.30of Corrections;
35.31 (v) pet grooming services;
35.32 (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
35.33and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor
35.34plant care; tree, bush, shrub, and stump removal, except when performed as part of a land
35.35clearing contract as defined in section
297A.68, subdivision 40; and tree trimming for
36.1public utility lines. Services performed under a construction contract for the installation of
36.2shrubbery, plants, sod, trees, bushes, and similar items are not taxable;
36.3 (vii) massages, except when provided by a licensed health care facility or
36.4professional or upon written referral from a licensed health care facility or professional for
36.5treatment of illness, injury, or disease; and
36.6 (viii) the furnishing of lodging, board, and care services for animals in kennels and
36.7other similar arrangements, but excluding veterinary and horse boarding services.
36.8 In applying the provisions of this chapter, the terms "tangible personal property"
36.9and "retail sale" include taxable services listed in clause (6), items (i) to (vi) and (viii),
36.10and the provision of these taxable services, unless specifically provided otherwise.
36.11Services performed by an employee for an employer are not taxable. Services performed
36.12by a partnership or association for another partnership or association are not taxable if
36.13one of the entities owns or controls more than 80 percent of the voting power of the
36.14equity interest in the other entity. Services performed between members of an affiliated
36.15group of corporations are not taxable. For purposes of the preceding sentence, "affiliated
36.16group of corporations" means those entities that would be classified as members of an
36.17affiliated group as defined under United States Code, title 26, section 1504, disregarding
36.18the exclusions in section 1504(b).
36.19 For purposes of clause (5), "road construction" means construction of (1) public
36.20roads, (2) cartways, and (3) private roads in townships located outside of the seven-county
36.21metropolitan area up to the point of the emergency response location sign.
36.22 (h) A sale and a purchase includes the furnishing for a consideration of tangible
36.23personal property or taxable services by the United States or any of its agencies or
36.24instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political
36.25subdivisions.
36.26 (i) A sale and a purchase includes the furnishing for a consideration of
36.27telecommunications services, ancillary services associated with telecommunication
36.28services, cable television services,
new text begin and new text end direct satellite services, and ring tones.
36.29Telecommunication services include, but are not limited to, the following services,
36.30as defined in section
297A.669: air-to-ground radiotelephone service, mobile
36.31telecommunication service, postpaid calling service, prepaid calling service, prepaid
36.32wireless calling service, and private communication services. The services in this
36.33paragraph are taxed to the extent allowed under federal law.
36.34 (j) A sale and a purchase includes the furnishing for a consideration of installation if
36.35the installation charges would be subject to the sales tax if the installation were provided
36.36by the seller of the item being installed.
37.1 (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer
37.2to a customer when (1) the vehicle is rented by the customer for a consideration, or (2)
37.3the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section
37.459B.02, subdivision
11.
37.5
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
37.6
new text begin June 30, 2011.new text end
37.7 Sec. 3. Minnesota Statutes 2010, section 297A.62, is amended by adding a subdivision
37.8to read:
37.9
new text begin Subd. 5.new text end new text begin Transitional period for services.new text end new text begin When there is a change in the rate of tax new text end
37.10
new text begin imposed by this section, the following transitional period shall apply to the retail sale of new text end
37.11
new text begin services covering a billing period starting before and ending after the statutory effective new text end
37.12
new text begin date of the rate change:new text end
37.13
new text begin (1) for a rate increase, the new rate shall apply to the first billing period starting new text end
37.14
new text begin on or after the effective date; andnew text end
37.15
new text begin (2) for a rate decrease, the new rate shall apply to bills rendered on or after the new text end
37.16
new text begin effective date.new text end
37.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
37.18 Sec. 4. Minnesota Statutes 2010, section 297A.63, is amended by adding a subdivision
37.19to read:
37.20
new text begin Subd. 3.new text end new text begin Transitional period for services.new text end new text begin When there is a change in the rate of new text end
37.21
new text begin tax imposed by this section, the following transitional period shall apply to the taxable new text end
37.22
new text begin services purchased for use, storage, distribution, or consumption in this state when the new text end
37.23
new text begin service purchased covers a billing period starting before and ending after the statutory new text end
37.24
new text begin effective date of the rate change:new text end
37.25
new text begin (1) for a rate increase, the new rate shall apply to the first billing period starting new text end
37.26
new text begin on or after the effective date; andnew text end
37.27
new text begin (2) for a rate decrease, the new rate shall apply to bills rendered on or after the new text end
37.28
new text begin effective date.new text end
37.29
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
37.30 Sec. 5. Minnesota Statutes 2010, section 297A.668, subdivision 7, is amended to read:
37.31 Subd. 7.
new text begin Advertising and promotional new text end direct mail. (a) Notwithstanding other
37.32subdivisions of this section,
new text begin the provisions in paragraphs (b) to (e) apply to the sale of new text end
38.1
new text begin advertising and promotional direct mail. "Advertising and promotional direct mail" means new text end
38.2
new text begin printed material that is direct mail as defined in section 297A.61, subdivision 35, the new text end
38.3
new text begin primary purpose of which is to attract public attention to a product, person, business, or new text end
38.4
new text begin organization, or to attempt to sell, popularize, or secure financial support for a person, new text end
38.5
new text begin business, organization, or product. "Product" includes tangible personal property, a digital new text end
38.6
new text begin product transferred electronically, or a service.new text end
38.7
new text begin (b)new text end A purchaser of
new text begin advertising and promotionalnew text end direct mail that is not a holder of
38.8a direct pay permit shall provide to the seller, in conjunction with the purchase, either a
38.9direct mail form or
new text begin may provide the seller with either:new text end
38.10
new text begin (1) a fully completed exemption certificate as described in section 297A.72 new text end
38.11
new text begin indicating that the purchaser is authorized to pay any sales or use tax due on purchases new text end
38.12
new text begin made by the purchaser directly to the commissioner under section 297A.89;new text end
38.13
new text begin (2) a fully completed exemption certificate claiming an exemption for direct mail; ornew text end
38.14
new text begin (3)new text end information to show
new text begin showingnew text end the jurisdictions to which the
new text begin advertising and new text end
38.15
new text begin promotionalnew text end direct mail is
new text begin to benew text end delivered to recipients.
38.16(1) Upon receipt of the direct mail form,
new text begin (c) In the absence of bad faith, if the new text end
38.17
new text begin purchaser provides one of the exemption certificates indicated in paragraph (b), clauses (1) new text end
38.18
new text begin and (2),new text end the seller is relieved of all obligations to collect, pay, or remit the applicable tax
38.19and the purchaser is obligated to pay or remit the applicable tax on a direct pay basis. A
38.20direct mail form remains in effect for all future sales of direct mail by the seller to the
38.21purchaser until it is revoked in writing.
new text begin tax on any transaction involving advertising and new text end
38.22
new text begin promotional direct mail to which the certificate applies. The purchaser shall source the new text end
38.23
new text begin sale to the jurisdictions to which the advertising and promotional direct mail is to be new text end
38.24
new text begin delivered to the recipients of the mail, and shall report and pay any applicable tax due.new text end
38.25(2) Upon receipt of
new text begin (d) If the purchaser provides the sellernew text end information from the
38.26purchaser showing the jurisdictions to which the
new text begin advertising and promotionalnew text end direct mail
38.27is
new text begin to benew text end delivered to recipients, the seller shall
new text begin source the sale to the jurisdictions to which new text end
38.28
new text begin the advertising and promotional direct mail is to be delivered and shallnew text end collect
new text begin and remitnew text end
38.29the
new text begin applicablenew text end tax according to the delivery information provided by the purchaser. In
38.30the absence of bad faith, the seller is relieved of any further obligation to collect
new text begin any new text end
38.31
new text begin additionalnew text end tax on any transaction for which
new text begin the sale of advertising and promotional direct new text end
38.32
new text begin mail wherenew text end the seller has collected tax pursuant
new text begin sourced the sale accordingnew text end to the delivery
38.33information provided by the purchaser.
38.34(b)
new text begin (e)new text end If the purchaser of direct mail does not have a direct pay permit and does
38.35not provide the seller with either a direct mail form or delivery information, as required
38.36by paragraph (a), the seller shall collect the tax according to
new text begin any of the items listed in new text end
39.1
new text begin paragraph (b), the sale shall be sourced undernew text end subdivision 2, paragraph (f). Nothing in
39.2this paragraph limits a purchaser's obligation for sales or use tax to any state to which the
39.3direct mail is delivered.
39.4(c) If a purchaser of direct mail provides the seller with documentation of direct
39.5pay authority, the purchaser is not required to provide a direct mail form or delivery
39.6information to the seller.
39.7
new text begin (f) This subdivision does not apply to printed materials that result from developing new text end
39.8
new text begin billing information or providing any data processing service that is more than incidental new text end
39.9
new text begin to producing the printed materials, regardless of whether advertising and promotional new text end
39.10
new text begin direct mail is included in the same mailing.new text end
39.11
new text begin (g) If a transaction is a bundled transaction that includes advertising and promotional new text end
39.12
new text begin direct mail, this subdivision applies only if the primary purpose of the transaction is the sale new text end
39.13
new text begin of products or services that meet the definition of advertising and promotional direct mail.new text end
39.14
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
39.15
new text begin June 30, 2011.new text end
39.16 Sec. 6. Minnesota Statutes 2010, section 297A.668, is amended by adding a
39.17subdivision to read:
39.18
new text begin Subd. 7a.new text end new text begin Other direct mail.new text end new text begin (a) Notwithstanding other subdivisions of this section, new text end
39.19
new text begin the provisions in paragraphs (b) and (c) apply to the sale of other direct mail. "Other direct new text end
39.20
new text begin mail" means printed material that is direct mail as defined in section 297A.61, subdivision new text end
39.21
new text begin 35, but is not advertising and promotional direct mail as described in subdivision 7, new text end
39.22
new text begin regardless of whether advertising and promotional direct mail is included in the same new text end
39.23
new text begin mailing. Other direct mail includes, but is not limited to:new text end
39.24
new text begin (1) direct mail pertaining to a transaction between the purchaser and addressee, new text end
39.25
new text begin where the mail contains personal information specific to the addressee including, but not new text end
39.26
new text begin limited to, invoices, bills, statements of account, and payroll advices;new text end
39.27
new text begin (2) any legally required mailings including, but not limited to, privacy notices, new text end
39.28
new text begin tax reports, and stockholder reports; andnew text end
39.29
new text begin (3) other nonpromotional direct mail delivered to existing or former shareholders, new text end
39.30
new text begin customers, employees, or agents including, but not limited to, newsletters and new text end
39.31
new text begin informational pieces.new text end
39.32
new text begin Other direct mail does not include printed materials that result from developing new text end
39.33
new text begin billing information or providing any data processing service that is more than incidental to new text end
39.34
new text begin producing the other direct mail.new text end
40.1
new text begin (b) A purchaser of other direct mail may provide the seller with either a fully new text end
40.2
new text begin completed exemption certificate as described in section 297A.72 indicating that the new text end
40.3
new text begin purchaser is authorized to pay any sales or use tax due on purchases made by the purchaser new text end
40.4
new text begin directly to the commissioner under section 297A.89, or a fully completed exemption new text end
40.5
new text begin certificate claiming an exemption for direct mail. If the purchaser provides one of the new text end
40.6
new text begin exemption certificates listed, then the seller, in the absence of bad faith, is relieved of all new text end
40.7
new text begin obligations to collect, pay, or remit the tax on any transaction involving other direct mail new text end
40.8
new text begin to which the certificate applies. The purchaser shall source the sale to the jurisdictions to new text end
40.9
new text begin which the other direct mail is to be delivered to the recipients of the mail, and shall report new text end
40.10
new text begin and pay any applicable tax due.new text end
40.11
new text begin (c) If the purchaser does not provide the seller with a fully completed exemption new text end
40.12
new text begin certificate claiming either exemption listed in paragraph (b), the sale shall be sourced new text end
40.13
new text begin according to subdivision 2, paragraph (d).new text end
40.14
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
40.15
new text begin June 30, 2011.new text end
40.16 Sec. 7. Minnesota Statutes 2010, section 297A.68, is amended by adding a subdivision
40.17to read:
40.18
new text begin Subd. 42.new text end new text begin Resold admission tickets.new text end new text begin (a) When a ticket reseller who purchased new text end
40.19
new text begin a ticket from a seller who is in the business of selling tickets resells the ticket, the new text end
40.20
new text begin ticket reseller must charge tax on the total amount for which the ticket is resold and the new text end
40.21
new text begin following rules apply:new text end
40.22
new text begin (1) if the ticket reseller did not use a fully completed exemption certificate to claim new text end
40.23
new text begin the exemption from tax for resale, but instead paid tax on the original purchase, then the new text end
40.24
new text begin ticket reseller may do one of the following:new text end
40.25
new text begin (i) seek a refund of that tax under section 289A.50; ornew text end
40.26
new text begin (ii) pass through to the purchaser the amount of the tax the ticket reseller paid on new text end
40.27
new text begin the original purchase, by giving the purchaser credit for the Minnesota state and local tax new text end
40.28
new text begin paid by the ticket reseller on the ticket reseller's original purchase of the ticket. Credit new text end
40.29
new text begin for the tax cannot exceed either the sales tax paid on the original price of the ticket or the new text end
40.30
new text begin sales tax charged by the ticket reseller to the final purchaser;new text end
40.31
new text begin (2) if the ticket reseller did not pay tax on the original purchase, tax is due on the full new text end
40.32
new text begin amount of the ticket when resold, without a credit given to the final purchaser; ornew text end
40.33
new text begin (3) the ticket reseller must retain records documenting the price and tax paid by the new text end
40.34
new text begin ticket reseller when purchasing the ticket and the price and tax collected when the ticket new text end
40.35
new text begin reseller resells the ticket.new text end
41.1
new text begin (b) When a ticket reseller who purchased a ticket from a seller who is not in the new text end
41.2
new text begin business of selling tickets resells the ticket, the ticket reseller must charge tax on the total new text end
41.3
new text begin amount for which the ticket is resold and the following rules apply:new text end
41.4
new text begin (1) the ticket reseller may credit its purchaser an amount equal to the tax the ticket new text end
41.5
new text begin reseller would have paid its seller, had the seller been registered to collect tax on its new text end
41.6
new text begin sale of the ticket to the ticket reseller. Credit for the tax cannot exceed either the sales new text end
41.7
new text begin tax paid on the original price of the ticket or the sales tax charged by the ticket reseller new text end
41.8
new text begin to the final purchaser. It is presumed that the original purchase price of the ticket is the new text end
41.9
new text begin face amount of the ticket;new text end
41.10
new text begin (2) if no tax was paid on the original purchase, tax is due on the full amount of the new text end
41.11
new text begin ticket when resold, without a credit given to the ticket reseller's purchaser; andnew text end
41.12
new text begin (3) the ticket reseller must retain records documenting the price and tax paid by the new text end
41.13
new text begin ticket reseller when purchasing the ticket and the price and tax collected when the ticket new text end
41.14
new text begin reseller resells the ticket.new text end
41.15
new text begin (c) For purposes of this subdivision, "ticket reseller" means a person who:new text end
41.16
new text begin (1) purchases admission tickets to a sporting event, theater, musical performance, or new text end
41.17
new text begin place of public entertainment or amusement of any kind;new text end
41.18
new text begin (2) resells admission tickets to events under clause (1); andnew text end
41.19
new text begin (3) is registered to collect tax under this chapter.new text end
41.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
41.21
new text begin June 30, 2011.new text end
41.22 Sec. 8. Minnesota Statutes 2010, section 297A.70, subdivision 1, is amended to read:
41.23 Subdivision 1.
Scope. (a) To the extent provided in this section, the gross receipts
41.24from sales of items to or by, and storage, distribution, use, or consumption of items by the
41.25organizations
new text begin or units of local government new text end listed in this section are specifically exempted
41.26from the taxes imposed by this chapter.
41.27(b) Notwithstanding any law to the contrary enacted before 1992, only sales to
41.28governments and political subdivisions listed in this section are exempt from the taxes
41.29imposed by this chapter.
41.30(c) "Sales" includes purchases under an installment contract or lease purchase
41.31agreement under section
465.71.
41.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
41.33
new text begin June 30, 2011.new text end
42.1 Sec. 9. Minnesota Statutes 2010, section 297A.70, subdivision 2, is amended to read:
42.2 Subd. 2.
Sales to government. (a) All sales, except those listed in paragraph (b),
42.3to the following governments and political subdivisions, or to the listed agencies or
42.4instrumentalities of governments and political subdivisions, are exempt:
42.5(1) the United States and its agencies and instrumentalities;
42.6(2) school districts, the University of Minnesota, state universities, community
42.7colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts
42.8Education, and an instrumentality of a political subdivision that is accredited as an
42.9optional/special function school by the North Central Association of Colleges and Schools;
42.10(3) hospitals and nursing homes owned and operated by political subdivisions of
42.11the state of tangible personal property and taxable services used at or by hospitals and
42.12nursing homes;
42.13(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip
42.14operations provided for in section
473.4051;
42.15(5) other states or political subdivisions of other states, if the sale would be exempt
42.16from taxation if it occurred in that state; and
42.17(6) sales to public libraries, public library systems, multicounty, multitype library
42.18systems as defined in section
134.001, county law libraries under chapter 134A, state
42.19agency libraries, the state library under section
480.09, and the Legislative Reference
42.20Library
new text begin ; andnew text end
42.21
new text begin (7) townsnew text end .
42.22(b) This exemption does not apply to the sales of the following products and services:
42.23(1) building, construction, or reconstruction materials purchased by a contractor
42.24or a subcontractor as a part of a lump-sum contract or similar type of contract with a
42.25guaranteed maximum price covering both labor and materials for use in the construction,
42.26alteration, or repair of a building or facility;
42.27(2) construction materials purchased by tax exempt entities or their contractors to
42.28be used in constructing buildings or facilities which will not be used principally by the
42.29tax exempt entities;
42.30(3) the leasing of a motor vehicle as defined in section
297B.01, subdivision 11,
42.31except for leases entered into by the United States or its agencies or instrumentalities; or
42.32(4) lodging as defined under section
297A.61, subdivision 3, paragraph (g),
42.33clause (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in
42.34section
297A.67, subdivision 2, except for lodging, prepared food, candy, soft drinks,
42.35and alcoholic beverages purchased directly by the United States or its agencies or
42.36instrumentalities
new text begin ; or new text end
43.1
new text begin (5) goods or services purchased by a town that are generally provided by a private new text end
43.2
new text begin business and the purchases would be taxable if made by a private business engaged in the new text end
43.3
new text begin same activitynew text end .
43.4(c) As used in this subdivision, "school districts" means public school entities and
43.5districts of every kind and nature organized under the laws of the state of Minnesota, and
43.6any instrumentality of a school district, as defined in section
471.59.
43.7
new text begin (d) As used in this subdivision, "goods or services generally provided by a private new text end
43.8
new text begin business" include, but are not limited to, goods or services provided by liquor stores, gas new text end
43.9
new text begin and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes, new text end
43.10
new text begin and laundromats. "Goods or services generally provided by a private business" do not new text end
43.11
new text begin include housing services, sewer and water services, wastewater treatment, ambulance and new text end
43.12
new text begin other public safety services, correctional services, chore or homemaking services provided new text end
43.13
new text begin to elderly or disabled individuals, or road and street maintenance or lighting.new text end
43.14
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
43.15
new text begin June 30, 2011.new text end
43.16 Sec. 10. Minnesota Statutes 2010, section 297A.70, subdivision 3, is amended to read:
43.17 Subd. 3.
Sales of certain goods and services to government. (a) The following
43.18sales to or use by the specified governments and political subdivisions of the state are
43.19exempt:
43.20 (1) repair and replacement parts for emergency rescue vehicles, fire trucks, and
43.21fire apparatus to a political subdivision;
43.22 (2) machinery and equipment, except for motor vehicles, used directly for mixed
43.23municipal solid waste management services at a solid waste disposal facility as defined in
43.24section
115A.03, subdivision 10;
43.25 (3) chore and homemaking services to a political subdivision of the state to be
43.26provided to elderly or disabled individuals;
43.27 (4) telephone services to the Office of Enterprise Technology that are used to provide
43.28telecommunications services through the enterprise technology revolving fund;
43.29 (5) firefighter personal protective equipment as defined in paragraph (b), if purchased
43.30or authorized by and for the use of an organized fire department, fire protection district, or
43.31fire company regularly charged with the responsibility of providing fire protection to the
43.32state or a political subdivision;
43.33 (6) bullet-resistant body armor that provides the wearer with ballistic and trauma
43.34protection, if purchased by a law enforcement agency of the state or a political subdivision
43.35of the state, or a licensed peace officer, as defined in section
626.84, subdivision 1;
44.1 (7) motor vehicles purchased or leased by political subdivisions of the state if the
44.2vehicles are exempt from registration under section
168.012, subdivision 1, paragraph (b),
44.3exempt from taxation under section
473.448, or exempt from the motor vehicle sales tax
44.4under section
297B.03, clause (12);
44.5 (8) equipment designed to process, dewater, and recycle biosolids for wastewater
44.6treatment facilities of political subdivisions, and materials incidental to installation of
44.7that equipment;
44.8 (9) sales to a town of gravel and of machinery, equipment, and accessories, except
44.9motor vehicles, used exclusively for road and bridge maintenance, and leases by a town of
44.10motor vehicles exempt from tax under section
, clause (10);
44.11 (10) the removal of trees, bushes, or shrubs for the construction and maintenance
44.12of roads, trails, or firebreaks when purchased by an agency of the state or a political
44.13subdivision of the state; and
44.14 (11)
new text begin (10)new text end purchases by the Metropolitan Council or the Department of Transportation
44.15of vehicles and repair parts to equip operations provided for in section
174.90, including,
44.16but not limited to, the Northstar Corridor Rail project.
new text begin ; andnew text end
44.17
new text begin (11) purchases of water used directly in providing public safety services by an new text end
44.18
new text begin organized fire department, fire protection district, or fire company regularly charged with new text end
44.19
new text begin the responsibility of providing fire protection to the state or a political subdivision.new text end
44.20 (b) For purposes of this subdivision, "firefighters personal protective equipment"
44.21means helmets, including face shields, chin straps, and neck liners; bunker coats and
44.22pants, including pant suspenders; boots; gloves; head covers or hoods; wildfire jackets;
44.23protective coveralls; goggles; self-contained breathing apparatus; canister filter masks;
44.24personal alert safety systems; spanner belts; optical or thermal imaging search devices;
44.25and all safety equipment required by the Occupational Safety and Health Administration.
44.26 (c) For purchases of items listed in paragraph (a), clause (11), the tax must be
44.27imposed and collected as if the rate under section
297A.62, subdivision 1, applied and
44.28then refunded in the manner provided in section
297A.75.
44.29
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
44.30
new text begin June 30, 2011, except that the new clause (11) is effective retroactively for sales and new text end
44.31
new text begin purchases made after June 30, 2007; however, for purposes of the new clause (11), new text end
44.32
new text begin no refunds may be made for amounts already paid on water purchased between June new text end
44.33
new text begin 30, 2007, and January 30, 2010.new text end
44.34 Sec. 11. Minnesota Statutes 2010, section 297A.70, subdivision 8, is amended to read:
45.1 Subd. 8.
Regionwide Public safety radio communication systemnew text begin systemsnew text end ;
45.2
products and services. Products and services including, but not limited to, end user
45.3equipment used for construction, ownership, operation, maintenance, and enhancement
45.4of the backbone system of the regionwide public safety radio communication system
45.5established under sections
to
new text begin systems, including public safety radio new text end
45.6
new text begin dispatch centersnew text end , are exempt. For purposes of this subdivision, backbone system is defined
45.7in section
403.21, subdivision 9. This subdivision is effective for purchases, sales, storage,
45.8use, or consumption for use in the first and second phases of the system, as defined in
45.9section
403.21, subdivisions 3, 10, and 11, that portion of the third phase of the system that
45.10is located in the southeast district of the State Patrol and the counties of Benton, Sherburne,
45.11Stearns, and Wright, and that portion of the system that is located in Itasca County.
45.12
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
45.13
new text begin December 31, 2009. After July 1, 2013, purchasers may apply for a refund of tax paid for new text end
45.14
new text begin qualifying purchases under this subdivision made after December 31, 2009, and before new text end
45.15
new text begin July 1, 2013, in the manner provided in section 297A.75.new text end
45.16 Sec. 12. Minnesota Statutes 2010, section 297A.75, subdivision 1, is amended to read:
45.17 Subdivision 1.
Tax collected. The tax on the gross receipts from the sale of the
45.18following exempt items must be imposed and collected as if the sale were taxable and the
45.19rate under section
297A.62, subdivision 1, applied. The exempt items include:
45.20 (1) capital equipment exempt under section
297A.68, subdivision 5;
45.21 (2) building materials for an agricultural processing facility exempt under section
45.22297A.71, subdivision 13
;
45.23 (3) building materials for mineral production facilities exempt under section
45.24297A.71, subdivision 14
;
45.25 (4) building materials for correctional facilities under section
297A.71, subdivision
45.263
;
45.27 (5) building materials used in a residence for disabled veterans exempt under section
45.28297A.71, subdivision 11
;
45.29 (6) elevators and building materials exempt under section
297A.71, subdivision 12;
45.30 (7) building materials for the Long Lake Conservation Center exempt under section
45.31297A.71, subdivision 17
;
45.32 (8) materials and supplies for qualified low-income housing under section
297A.71,
45.33subdivision 23
;
45.34 (9) materials, supplies, and equipment for municipal electric utility facilities under
45.35section
297A.71, subdivision 35;
46.1 (10) equipment and materials used for the generation, transmission, and distribution
46.2of electrical energy and an aerial camera package exempt under section
297A.68,
46.3subdivision 37;
46.4 (11) tangible personal property and taxable services and construction materials,
46.5supplies, and equipment exempt under section
297A.68, subdivision 41;
46.6 (12) commuter rail vehicle and repair parts under section
297A.70, subdivision
46.73, clause (11);
46.8 (13) materials, supplies, and equipment for construction or improvement of projects
46.9and facilities under section
297A.71, subdivision 40;
46.10(14) materials, supplies, and equipment for construction or improvement of a meat
46.11processing facility exempt under section
297A.71, subdivision 41; and
46.12(15) materials, supplies, and equipment for construction, improvement, or expansion
46.13of an aerospace defense manufacturing facility exempt under section
297A.71, subdivision
46.1442
new text begin ; andnew text end
46.15
new text begin (16) products and services for a regionwide public safety radio communication new text end
46.16
new text begin system exempt under section 297A.70, subdivision 8, purchased after December 31, new text end
46.17
new text begin 2009, and before July 1, 2013new text end .
46.18
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
46.19
new text begin December 31, 2009. After July 1, 2013, purchasers may apply for a refund of tax paid for new text end
46.20
new text begin qualifying purchases under this subdivision made after December 31, 2009, and before new text end
46.21
new text begin July 1, 2013, in the manner provided in section 297A.75.new text end
46.22 Sec. 13. Minnesota Statutes 2010, section 297A.75, subdivision 2, is amended to read:
46.23 Subd. 2.
Refund; eligible persons. Upon application on forms prescribed by the
46.24commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
46.25must be paid to the applicant. Only the following persons may apply for the refund:
46.26 (1) for subdivision 1, clauses (1) to (3), the applicant must be the purchaser;
46.27 (2) for subdivision 1, clauses (4) and (7), the applicant must be the governmental
46.28subdivision;
46.29 (3) for subdivision 1, clause (5), the applicant must be the recipient of the benefits
46.30provided in United States Code, title 38, chapter 21;
46.31 (4) for subdivision 1, clause (6), the applicant must be the owner of the homestead
46.32property;
46.33 (5) for subdivision 1, clause (8), the owner of the qualified low-income housing
46.34project;
47.1 (6) for subdivision 1, clause (9), the applicant must be a municipal electric utility or
47.2a joint venture of municipal electric utilities;
47.3 (7) for subdivision 1, clauses (10), (11), (14), and (15), the owner of the qualifying
47.4business; and
47.5 (8) for subdivision 1, clauses (12) and
new text begin ,new text end (13)
new text begin , and (16)new text end , the applicant must be the
47.6governmental entity that owns or contracts for the project or facility.
47.7
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
47.8
new text begin December 31, 2009. After July 1, 2013, purchasers may apply for a refund of tax paid for new text end
47.9
new text begin qualifying purchases under this subdivision made after December 31, 2009, and before new text end
47.10
new text begin July 1, 2013, in the manner provided in section 297A.75.new text end
47.11 Sec. 14. Minnesota Statutes 2010, section 297A.75, subdivision 3, is amended to read:
47.12 Subd. 3.
Application. (a) The application must include sufficient information
47.13to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
47.14subcontractor, or builder, under subdivision 1, clause (4), (5), (6), (7), (8), (9), (10), (11),
47.15(12), (13), (14), or (15)
new text begin , or (16)new text end , the contractor, subcontractor, or builder must furnish to
47.16the refund applicant a statement including the cost of the exempt items and the taxes paid
47.17on the items unless otherwise specifically provided by this subdivision. The provisions of
47.18sections
289A.40 and
289A.50 apply to refunds under this section.
47.19 (b) An applicant may not file more than two applications per calendar year for
47.20refunds for taxes paid on capital equipment exempt under section
297A.68, subdivision 5.
47.21 (c) Total refunds for purchases of items in section
297A.71, subdivision 40, must not
47.22exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases
47.23of items in sections
297A.70, subdivision 3, paragraph (a), clause (11), and
297A.71,
47.24subdivision 40, must not be filed until after June 30, 2009.
47.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
47.26
new text begin December 31, 2009. After July 1, 2013, purchasers may apply for a refund of tax paid for new text end
47.27
new text begin qualifying purchases under this subdivision made after December 31, 2009, and before new text end
47.28
new text begin July 1, 2013, in the manner provided in section 297A.75.new text end
47.29 Sec. 15. Minnesota Statutes 2010, section 297A.82, subdivision 4, is amended to read:
47.30 Subd. 4.
Exemptions. (a) The following transactions are exempt from the tax
47.31imposed in this chapter to the extent provided.
48.1(b) The purchase or use of aircraft previously registered in Minnesota by a
48.2corporation or partnership is exempt if the transfer constitutes a transfer within the
48.3meaning of section 351 or 721 of the Internal Revenue Code.
48.4(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer
48.5of an aircraft for which a commercial use permit has been issued pursuant to section
48.6360.654
is exempt, if the aircraft is resold while the permit is in effect.
48.7(d) Airflight equipment when sold to, or purchased, stored, used, or consumed by
48.8airline companies, as defined in section
270.071, subdivision 4, is exempt. For purposes of
48.9this subdivision, "airflight equipment" includes airplanes and parts necessary for the repair
48.10and maintenance of such airflight equipment, and flight simulators, but does not include
48.11airplanes with a gross weight of less than 30,000 pounds that are used on intermittent or
48.12irregularly timed flights.
48.13(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined
48.14in section
360.511 and approved by the Federal Aviation Administration, and which the
48.15seller delivers to a purchaser outside Minnesota or which, without intermediate use, is
48.16shipped or transported outside Minnesota by the purchaser are exempt, but only if the
48.17purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter
48.18returned to a point within Minnesota, except in the course of interstate commerce or
48.19isolated and occasional use, and will be registered in another state or country upon its
48.20removal from Minnesota. This exemption applies even if the purchaser takes possession of
48.21the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes
48.22for a period not to exceed ten days prior to removing the aircraft from this state.
48.23
new text begin (f) The sale or purchase of aircraft and aircraft equipment, including parts necessary new text end
48.24
new text begin for repair and maintenance of such airflight equipment, as defined under Federal Aviation new text end
48.25
new text begin Regulations, Part 135, that has a maximum certified takeoff weight of 6,000 pounds or new text end
48.26
new text begin more are exempt.new text end
48.27
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
48.28
new text begin June 30, 2011.new text end
48.29 Sec. 16.
new text begin REPEALER.new text end
48.30
new text begin Minnesota Statutes 2010, section 289A.60, subdivision 31,new text end new text begin is repealed.new text end
48.31
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes due and payable after new text end
48.32
new text begin July 1, 2011.new text end
49.1
ARTICLE 4
49.2
ECONOMIC DEVELOPMENT
49.3 Section 1.
new text begin [116W.25] CITATION.new text end
49.4
new text begin Sections 116W.26 to 116W.34 may be cited as the "Minnesota science and new text end
49.5
new text begin technology program." new text end
49.6 Sec. 2.
new text begin [116W.26] DEFINITIONS.new text end
49.7
new text begin Subdivision 1.new text end new text begin Applicability.new text end new text begin For the purposes of sections 116W.26 to 116W.34, new text end
49.8
new text begin the terms in this section have the meanings given them. new text end
49.9
new text begin Subd. 2.new text end new text begin Authority.new text end new text begin "Authority" means the Minnesota Science and Technology new text end
49.10
new text begin Authority established under this chapter. new text end
49.11
new text begin Subd. 3.new text end new text begin College or university.new text end new text begin "College or university" means an institution of new text end
49.12
new text begin postsecondary education, public or private, that grants undergraduate or postgraduate new text end
49.13
new text begin academic degrees, conducts significant research or development activities in the areas of new text end
49.14
new text begin science and technology.new text end
49.15
new text begin Subd. 4.new text end new text begin Commercialization.new text end new text begin "Commercialization" means any of the full spectrum new text end
49.16
new text begin of activities required for a new technology, product, or process to be developed from new text end
49.17
new text begin its basic research of conceptual stage through applied research or development to the new text end
49.18
new text begin marketplace including, without limitation, the steps leading up to and including licensure, new text end
49.19
new text begin sales, and services.new text end
49.20
new text begin Subd. 5.new text end new text begin Commercialized research project.new text end new text begin "Commercialized research project" new text end
49.21
new text begin means research conducted within a college or university or nonprofit research institution new text end
49.22
new text begin or by a qualified science and technology company that has shown advanced commercial new text end
49.23
new text begin potential through license agreements, patents, or other forms of invention disclosure, and new text end
49.24
new text begin by which a qualified science and technology company has been or is being currently new text end
49.25
new text begin formed. new text end
49.26
new text begin Subd. 6.new text end new text begin Fund.new text end new text begin "Fund" means the Minnesota science and technology fund.new text end
49.27
new text begin Subd. 7.new text end new text begin Nonprofit research institution.new text end new text begin "Nonprofit research institution" means an new text end
49.28
new text begin entity with its principle place of business in Minnesota, that qualifies under section 501(c) new text end
49.29
new text begin of the Internal Revenue Code, and that conducts significant research or development new text end
49.30
new text begin activities in this state in the areas of science and technology.new text end
49.31
new text begin Subd. 8.new text end new text begin Program.new text end new text begin "Program" means the Minnesota science and technology new text end
49.32
new text begin program.new text end
49.33
new text begin Subd. 9.new text end new text begin Qualified science and technology company.new text end new text begin "Qualified science and new text end
49.34
new text begin technology company" means a corporation, limited liability company, S corporation, new text end
49.35
new text begin partnership, limited liability partnership, or sole proprietorship with fewer than 100 new text end
50.1
new text begin employees that is engaged in research, development, or production of science or new text end
50.2
new text begin technology in this state including, without limitation, research, development, or production new text end
50.3
new text begin directed toward developing or providing science and technology products, processes, or new text end
50.4
new text begin services for specific commercial or public purposes.new text end
50.5 Sec. 3.
new text begin [116W.27] MINNESOTA SCIENCE AND TECHNOLOGY FUND.new text end
50.6
new text begin A Minnesota science and technology fund is created in the state treasury. The fund new text end
50.7
new text begin is a direct-appropriated special revenue fund. Money of the authority must be paid to the new text end
50.8
new text begin commissioner of management and budget as agent of the authority and the commissioner new text end
50.9
new text begin shall not commingle the money with other money. The money in the fund must be paid out new text end
50.10
new text begin only on warrants drawn by the commissioner of management and budget on requisition of new text end
50.11
new text begin the executive director of the authority or designee.new text end
50.12 Sec. 4.
new text begin [116W.28] MINNESOTA SCIENCE AND TECHNOLOGY FUND; new text end
50.13
new text begin AUTHORIZED USES.new text end
50.14
new text begin The Minnesota science and technology fund may be used for the following to:new text end
50.15
new text begin (1) establish the commercialized research program authorized under section new text end
50.16
new text begin 116W.29;new text end
50.17
new text begin (2) establish the federal research and development support program under section new text end
50.18
new text begin 116W.30;new text end
50.19
new text begin (3) establish the industry technology and competitiveness program under section new text end
50.20
new text begin 116W.31; and new text end
50.21
new text begin (4) carry out the powers of the authority authorized under sections 116W.04 and new text end
50.22
new text begin 116W.32 that are in support of the programs in clauses (1) to (3).new text end
50.23 Sec. 5.
new text begin [116W.29] COMMERCIALIZED RESEARCH PROGRAM.new text end
50.24
new text begin (a) The authority may establish a commercialized research program. The purpose of new text end
50.25
new text begin the program is to accelerate the commercialization of science and technology products, new text end
50.26
new text begin processes, or services from colleges or universities, nonprofit research institutions or new text end
50.27
new text begin qualified science and technology companies that lead to an increase in science and new text end
50.28
new text begin technology businesses and jobs. The program shall:new text end
50.29
new text begin (1) provide science and technology gap funding of up to $250,000 per science and new text end
50.30
new text begin technology research project to assist in the commercialization and transfer of science and new text end
50.31
new text begin technology research projects from a college or university or nonprofit research institution new text end
50.32
new text begin to a qualified science and technology company; andnew text end
51.1
new text begin (2) provide funding of up to $250,000 for early stage development for qualified new text end
51.2
new text begin science and technology companies to conduct commercialized research projects.new text end
51.3
new text begin (b) All activities under the commercialized research program must require:new text end
51.4
new text begin (1) written criteria set by the authority for the application, award, and use of the new text end
51.5
new text begin funds;new text end
51.6
new text begin (2) matching funds by the participating qualified science and technology company, new text end
51.7
new text begin college or university, or nonprofit research institution;new text end
51.8
new text begin (3) no more than 15 percent of the funds awarded by the authority may be used new text end
51.9
new text begin for overhead costs; andnew text end
51.10
new text begin (4) a report by the participating qualified science and technology company, college new text end
51.11
new text begin or university, or nonprofit research institution that provides documentation of the use of new text end
51.12
new text begin funds and outcomes of the award. The report must be submitted to the authority within new text end
51.13
new text begin one calendar year of the date of the award.new text end
51.14 Sec. 6.
new text begin [116W.30] FEDERAL RESEARCH AND DEVELOPMENT SUPPORT new text end
51.15
new text begin PROGRAM.new text end
51.16
new text begin The authority may establish a federal research and development support program. new text end
51.17
new text begin The purpose of the program is to increase and coordinate efforts to procure federal funding new text end
51.18
new text begin for research projects of primary benefit to qualified science and technology companies, new text end
51.19
new text begin colleges or universities, and nonprofit research institutions. The program shall:new text end
51.20
new text begin (1) develop and execute a strategy to identify specific federal agencies and programs new text end
51.21
new text begin that support the growth of science and technology industries in this state; andnew text end
51.22
new text begin (2) provide grants to qualified science and technology companies:new text end
51.23
new text begin (i) to assist in the development of federal Small Business Innovation (SBIR) or new text end
51.24
new text begin Small Business Technology Transfer (STTR) proposals; andnew text end
51.25
new text begin (ii) to match funds received through SBIR or STTR awards. No more than new text end
51.26
new text begin $1,500,000 may be awarded in a year for matching grants under this clause.new text end
51.27 Sec. 7.
new text begin [116W.31] INDUSTRY INNOVATION AND COMPETITIVENESS new text end
51.28
new text begin PROGRAM.new text end
51.29
new text begin (a) The authority may establish an industry technology and competitiveness program. new text end
51.30
new text begin The purpose of the program is to advance the technological capacity and competitiveness new text end
51.31
new text begin of existing and emerging science and technology industries. The program shall:new text end
51.32
new text begin (1) provide matching funds to programs and organizations that assist entrepreneurs new text end
51.33
new text begin in starting and growing qualified science and technology companies including, but not new text end
52.1
new text begin limited to, matching funds for mentoring programs, consulting and technical services, new text end
52.2
new text begin and related activities;new text end
52.3
new text begin (2) fund initiatives that retain engineering, science, technology, and mathematical new text end
52.4
new text begin occupations in the state including, but not limited to, internships, mentoring, and support new text end
52.5
new text begin of industry and professional organizations; andnew text end
52.6
new text begin (3) fund initiatives that support the growth of targeted industry clusters and the new text end
52.7
new text begin competitiveness of existing qualified science and technology companies in developing new text end
52.8
new text begin and marketing new products and services.new text end
52.9
new text begin (b) All activities under the industry innovation and competitiveness program shall new text end
52.10
new text begin require:new text end
52.11
new text begin (i) written criteria set by the authority for the application, award, and use of the funds;new text end
52.12
new text begin (ii) matching funds by the participating qualified science and technology company, new text end
52.13
new text begin college or university, or nonprofit research institution; andnew text end
52.14
new text begin (iii) a report by the participating qualified science and technology company, college new text end
52.15
new text begin or university, or nonprofit research institution providing documentation on the use of the new text end
52.16
new text begin funds and outcomes of the award. The report must be submitted to the authority within new text end
52.17
new text begin one calendar year from the date of the award.new text end
52.18 Sec. 8.
new text begin [116W.32] MINNESOTA SCIENCE AND TECHNOLOGY AUTHORITY; new text end
52.19
new text begin POWERS UNDER FUND.new text end
52.20
new text begin Subdivision 1.new text end new text begin General powers.new text end new text begin The authority shall have all of the powers new text end
52.21
new text begin necessary to carry out the purposes and provisions of sections 116W.26 to 116W.34, new text end
52.22
new text begin including, but not limited to, those provided under section 116W.04 and the following:new text end
52.23
new text begin (1) The authority may make awards in the forms of grants or loans, and charge and new text end
52.24
new text begin receive a reasonable interest for the loans, or take an equity position in form of stock, a new text end
52.25
new text begin convertible note, or other securities in consideration of an award. Interests, revenues, or new text end
52.26
new text begin other proceeds received as a result of a transaction authorized by use of this fund shall be new text end
52.27
new text begin deposited to the corpus of the fund and used in the same manner as the corpus of the fund.new text end
52.28
new text begin (2) In awarding money from the fund, priority shall be given to proposals from new text end
52.29
new text begin qualified science and technology companies that have demonstrable economic benefit to new text end
52.30
new text begin the state in terms of the formation of a new private sector business entity, the creation of new text end
52.31
new text begin jobs, or the attraction of federal and private funding.new text end
52.32
new text begin (3) In awarding money from the fund, priority shall be given to proposals from new text end
52.33
new text begin colleges or universities and nonprofit research institutions that:new text end
52.34
new text begin (i) promote collaboration between any combination of colleges or universities, new text end
52.35
new text begin nonprofit research institutions, and private industry;new text end
53.1
new text begin (ii) enhance existing research superiority by attracting new research entities, new text end
53.2
new text begin research talent, or resources to the state; andnew text end
53.3
new text begin (iii) create new research superiority that attracts significant researchers and resources new text end
53.4
new text begin from outside the state.new text end
53.5
new text begin (4) Subject to the limits in this clause, money within the fund may be used new text end
53.6
new text begin for reasonable administrative expenses by the authority including staffing and direct new text end
53.7
new text begin operational expenses, and professional fees for accounting, legal, and other technical new text end
53.8
new text begin services required to carry out the intent of the program and administration of the fund. new text end
53.9
new text begin Administrative expenses may not exceed five percent of the first $5,000,000 in the fund new text end
53.10
new text begin and two percent of any amount in excess of $5,000,000.new text end
53.11
new text begin (5) Before making an award, the authority shall enter into a written agreement with new text end
53.12
new text begin the entity receiving the award that specifies the uses of the award.new text end
53.13
new text begin (6) If the award recipient has not used the award received for the purposes intended, new text end
53.14
new text begin as of the date provided in the agreement, the recipient shall repay that amount and any new text end
53.15
new text begin interest applicable under the agreement to the authority. All repayments must be deposited new text end
53.16
new text begin to the corpus of the fund.new text end
53.17
new text begin Subd. 2.new text end new text begin Rules.new text end new text begin The authority may adopt rules to implement the programs new text end
53.18
new text begin authorized under sections 116W.29 to 116W.31.new text end
53.19 Sec. 9.
new text begin [116W.33] REPAYMENT.new text end
53.20
new text begin An entity must repay all or a portion of the amount of any award, grant, loan, or new text end
53.21
new text begin financial assistance of any type paid by the authority under sections 116W.29 to 116W.32 new text end
53.22
new text begin if the entity relocates outside the state or ceases operation in Minnesota within four years new text end
53.23
new text begin from the date the authority provided the financial award. If the entity relocates outside of new text end
53.24
new text begin this state or ceases operation in Minnesota within three years of the financial award, the new text end
53.25
new text begin entity must repay 100 percent of the award. If the entity relocates or ceases operation in new text end
53.26
new text begin Minnesota after a period of three years but before four years from the date of the financial new text end
53.27
new text begin award, the entity must repay 75 percent of the financial award. new text end
53.28 Sec. 10.
new text begin [116W.34] EXPIRATION.new text end
53.29
new text begin Sections 116W.26 to 116W.33 expire on the expiration date of the authority under new text end
53.30
new text begin section 116W.03, subdivision 7. Any unused money in the fund shall be deposited in the new text end
53.31
new text begin general fund.new text end
53.32 Sec. 11. Minnesota Statutes 2010, section 469.176, subdivision 4c, is amended to read:
54.1 Subd. 4c.
Economic development districts. (a) Revenue derived from tax
54.2increment from an economic development district may not be used to provide
54.3improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form
54.4to developments consisting of buildings and ancillary facilities, if more than 15 percent
54.5of the buildings and facilities (determined on the basis of square footage) are used for a
54.6purpose other than:
54.7(1) the manufacturing or production of tangible personal property, including
54.8processing resulting in the change in condition of the property;
54.9(2) warehousing, storage, and distribution of tangible personal property, excluding
54.10retail sales;
54.11(3) research and development related to the activities listed in clause (1) or (2);
54.12(4) telemarketing if that activity is the exclusive use of the property;
54.13(5) tourism facilities;
54.14(6) qualified border retail facilities; or
54.15(7) space necessary for and related to the activities listed in clauses (1) to (6).
54.16(b) Notwithstanding the provisions of this subdivision, revenues derived from tax
54.17increment from an economic development district may be used to provide improvements,
54.18loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000
54.19square feet of any separately owned commercial facility located within the municipal
54.20jurisdiction of a small city, if the revenues derived from increments are spent only to
54.21assist the facility directly or for administrative expenses, the assistance is necessary to
54.22develop the facility, and all of the increments, except those for administrative expenses,
54.23are spent only for activities within the district.
54.24(c) A city is a small city for purposes of this subdivision if the city was a small city
54.25in the year in which the request for certification was made and applies for the rest of
54.26the duration of the district, regardless of whether the city qualifies or ceases to qualify
54.27as a small city.
54.28(d) Notwithstanding the requirements of paragraph (a) and the finding requirements
54.29of section
469.174, subdivision 12, tax increments from an economic development district
54.30may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or
54.31assistance in any form to developments consisting of buildings and ancillary facilities, if
54.32all the following conditions are met:
54.33(1) the municipality finds that the project will create or retain jobs in this state,
54.34including construction jobs, and that construction of the project would not have
54.35commenced before July 1, 2011
new text begin 2012new text end , without the authority providing assistance under
54.36the provisions of this paragraph;
55.1(2) construction of the project begins no later than July 1, 2011
new text begin 2012new text end ; and
55.2(3) the request for certification of the district is made no later than June 30, 2011
new text begin new text end
55.3
new text begin 2012; andnew text end
55.4
new text begin (4) for development of housing under this paragraph, the construction must begin new text end
55.5
new text begin before January 1, 2012new text end .
55.6
new text begin The provisions of this paragraph may not be used to assist housing that is developed new text end
55.7
new text begin to qualify under section 469.1761, subdivision 2 or 3, or similar requirements of other law, new text end
55.8
new text begin if construction of the project begins later than July 1, 2011.new text end
55.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
55.10 Sec. 12. Minnesota Statutes 2010, section 469.176, subdivision 4m, is amended to read:
55.11 Subd. 4m.
Temporary authority to stimulate construction. (a) Notwithstanding
55.12the restrictions in any other subdivision of this section or any other law to the contrary,
55.13except the requirement to pay bonds to which the increments are pledged and the
55.14provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or
55.15more of the following purposes:
55.16(1) to provide improvements, loans, interest rate subsidies, or assistance in any
55.17form to private development consisting of the construction or substantial rehabilitation
55.18of buildings and ancillary facilities, if doing so will create or retain jobs in this state,
55.19including construction jobs, and that the construction commences before July 1, 2011
new text begin new text end
55.20
new text begin 2012new text end , and would not have commenced before that date without the assistance; or
55.21(2) to make an equity or similar investment in a corporation, partnership, or limited
55.22liability company that the authority determines is necessary to make construction of a
55.23development that meets the requirements of clause (1) financially feasible.
55.24(b) The authority may undertake actions under the authority of this subdivision only
55.25after approval by the municipality of a written spending plan that specifically authorizes
55.26the authority to take the actions. The municipality shall approve the spending plan only
55.27after a public hearing after published notice in a newspaper of general circulation in
55.28the municipality at least once, not less than ten days nor more than 30 days prior to the
55.29date of the hearing.
55.30(c) The authority to spend tax increments under this subdivision expires December
55.3131, 2011
new text begin 2012new text end .
55.32
new text begin (d) For a development consisting of housing, the authority to spend tax increments new text end
55.33
new text begin under this subdivision expires December 31, 2011, and construction must commence new text end
55.34
new text begin before July 1, 2011, except the authority to spend tax increments on market rate housing new text end
56.1
new text begin developments under this subdivision expires July 31, 2012, and construction must new text end
56.2
new text begin commence before January 1, 2012.new text end
56.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
56.4 Sec. 13. Minnesota Statutes 2010, section 469.1763, subdivision 2, is amended to read:
56.5 Subd. 2.
Expenditures outside district. (a) For each tax increment financing
56.6district, an amount equal to at least 75 percent of the total revenue derived from tax
56.7increments paid by properties in the district must be expended on activities in the district
56.8or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities
56.9in the district or to pay, or secure payment of, debt service on credit enhanced bonds.
56.10For districts, other than redevelopment districts for which the request for certification
56.11was made after June 30, 1995, the in-district percentage for purposes of the preceding
56.12sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax
56.13increments paid by properties in the district may be expended, through a development fund
56.14or otherwise, on activities outside of the district but within the defined geographic area of
56.15the project except to pay, or secure payment of, debt service on credit enhanced bonds.
56.16For districts, other than redevelopment districts for which the request for certification was
56.17made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is
56.1820 percent. The revenue derived from tax increments for the district that are expended on
56.19costs under section
469.176, subdivision 4h, paragraph (b), may be deducted first before
56.20calculating the percentages that must be expended within and without the district.
56.21 (b) In the case of a housing district, a housing project, as defined in section
469.174,
56.22subdivision 11
, is an activity in the district.
56.23 (c) All administrative expenses are for activities outside of the district, except that
56.24if the only expenses for activities outside of the district under this subdivision are for
56.25the purposes described in paragraph (d), administrative expenses will be considered as
56.26expenditures for activities in the district.
56.27 (d) The authority may elect, in the tax increment financing plan for the district,
56.28to increase by up to ten percentage points the permitted amount of expenditures for
56.29activities located outside the geographic area of the district under paragraph (a). As
56.30permitted by section
469.176, subdivision 4k, the expenditures, including the permitted
56.31expenditures under paragraph (a), need not be made within the geographic area of the
56.32project. Expenditures that meet the requirements of this paragraph are legally permitted
56.33expenditures of the district, notwithstanding section
469.176, subdivisions 4b, 4c, and 4j.
56.34To qualify for the increase under this paragraph, the expenditures must:
57.1 (1) be used exclusively to assist housing that meets the requirement for a qualified
57.2low-income building, as that term is used in section 42 of the Internal Revenue Code;
new text begin andnew text end
57.3 (2) not exceed the qualified basis of the housing, as defined under section 42(c) of
57.4the Internal Revenue Code, less the amount of any credit allowed under section 42 of
57.5the Internal Revenue Code; and
57.6 (3) be used to:
57.7 (i) acquire and prepare the site of the housing;
57.8 (ii) acquire, construct, or rehabilitate the housing; or
57.9 (iii) make public improvements directly related to the housing.
new text begin ; ornew text end
57.10
new text begin (4) be used to develop housing:new text end
57.11
new text begin (i) if the market value of the housing does not exceed the lesser of:new text end
57.12
new text begin (A) 150 percent of the average market of single-family homes in that municipality; ornew text end
57.13
new text begin (B) $200,000 for municipalities located in the metropolitan area, as defined in new text end
57.14
new text begin section 473.121, or $125,000 for all other municipalities; andnew text end
57.15
new text begin (ii) if the expenditures are used to pay the cost of site acquisition, relocation, new text end
57.16
new text begin demolition of existing structures, site preparation, and pollution abatement on one or new text end
57.17
new text begin more parcels, if the parcelnew text end new text begin contains a residence containing one to four family dwelling new text end
57.18
new text begin units that has been vacant for six or more months and new text end new text begin is in foreclosure as defined in new text end
57.19
new text begin section 325N.10, subdivision 7, but without regard to whether the residence is the owner's new text end
57.20
new text begin principal residence, and only after the redemption period stated in the notice provided new text end
57.21
new text begin under section 580.06 has expired.new text end
57.22 (e) For a district created within a biotechnology and health sciences industry zone
57.23as defined in section
469.330, subdivision 6, or for an existing district located within
57.24such a zone, tax increment derived from such a district may be expended outside of the
57.25district but within the zone only for expenditures required for the construction of public
57.26infrastructure necessary to support the activities of the zone, land acquisition, and other
57.27redevelopment costs as defined in section
469.176, subdivision 4j. These expenditures are
57.28considered as expenditures for activities within the district.
57.29
new text begin (f) The authority under paragraph (d), clause (4), expires on December 31, 2016. new text end
57.30
new text begin Increments may continue to be expended under this authority after that date, if they are new text end
57.31
new text begin used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph new text end
57.32
new text begin (a), if December 31, 2016, is considered to be the last date of the five-year period after new text end
57.33
new text begin certification under that provision.new text end
57.34
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for any district that is subject to the new text end
57.35
new text begin provisions of section 469.1763, regardless of when the request for certification of the new text end
57.36
new text begin district was made.new text end
58.1 Sec. 14. Laws 2010, chapter 389, article 7, section 22, is amended to read:
58.2 Sec. 22.
CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT;
58.3
SPECIAL RULES.
58.4(a) If the city of Ramsey or an authority of the city elects upon the adoption of a tax
58.5increment financing plan for a district, the rules under this section apply to a redevelopment
58.6tax increment financing district established by the city or an authority of the city. The
58.7redevelopment tax increment district includes parcels within the area bounded on the
new text begin east new text end
58.8
new text begin by Ramsey Boulevard, on the new text end north by Bunker Lake Boulevard as extended west to Llama
58.9Street, on the west by Llama Street, and on the south by a line running parallel to and
58.10600 feet south of the southerly right-of-way for U.S. Highway 10, but including Parcels
58.1128-32-25-43-0007 and 28-32-25-34-0002 in their entirety, and excluding the Anoka
58.12County Regional Park property in its entirety. A parcel within this area that is included in
58.13a tax increment financing district that was certified before the date of enactment of this act
58.14may be included in the district created under this act if the initial district is decertified.
58.15(b) The requirements for qualifying a redevelopment tax increment district under
58.16Minnesota Statutes, section
469.174, subdivision 10, do not apply to the parcels located
58.17within the district.
58.18(c) In addition to the costs permitted by Minnesota Statutes, section
469.176,
58.19subdivision 4j
,
new text begin does not apply to the district. new text end Eligible expenditures within the district
58.20include
new text begin but are not limited to (1) new text end the city's share of the costs necessary to provide for
58.21the construction of the Northstar Transit Station and related infrastructure, including
58.22structured parking, a pedestrian overpass, and roadway improvements
new text begin , (2) the cost of new text end
58.23
new text begin land acquired by the city or the housing and redevelopment authority in and for the city new text end
58.24
new text begin of Ramsey within the district prior to the establishment of the district, and (3) the cost new text end
58.25
new text begin of public improvements installed within the tax increment financing district prior to the new text end
58.26
new text begin establishment of the districtnew text end .
58.27(d) The requirement of Minnesota Statutes, section
469.1763, subdivision 3, that
58.28activities must be undertaken within a five-year period from the date of certification of a
58.29tax increment financing district, is considered to be met for the district if the activities
58.30were undertaken within ten years from the date of certification of the district.
58.31(e) Except for administrative expenses, the in-district percentage for purposes of
58.32the restriction on pooling under Minnesota Statutes, section
469.1763, subdivision 2, for
58.33this district is 100 percent.
58.34
new text begin (f) The requirement of Minnesota Statutes, section 469.177, subdivision 4, does not new text end
58.35
new text begin apply to Parcels 28-32-25-42-0021 and 28-32-25-41-0014, where development occurred new text end
59.1
new text begin after enactment of Laws 2010, chapter 389, article 7, section 22, and prior to adoption of new text end
59.2
new text begin the tax increment financing plan for the district.new text end
59.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective upon approval by the governing new text end
59.4
new text begin body of the city of Ramsey, and upon compliance by the city with Minnesota Statutes, new text end
59.5
new text begin section 645.021, subdivision 3.new text end
59.6 Sec. 15.
new text begin CITY OF COHASSET; USE OF TAX INCREMENTS.new text end
59.7
new text begin The authority operating tax increment financing districts No. 2-1 and No. 3-1 in new text end
59.8
new text begin the city of Cohasset may transfer tax increments from each of those districts to the city new text end
59.9
new text begin in an amount equal to the advances made by the city from its general fund to finance new text end
59.10
new text begin expenditures under Minnesota Statutes, section 469.176, subdivision 4, for the benefit new text end
59.11
new text begin of that district.new text end
59.12
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment, new text end
59.13
new text begin upon approval by the governing body of the city of Cohasset and compliance with new text end
59.14
new text begin Minnesota Statutes, section 645.021, subdivision 3.new text end
59.15 Sec. 16.
new text begin CITY OF LINO LAKES; TAX INCREMENT FINANCING.new text end
59.16
new text begin Subdivision 1.new text end new text begin Duration of district.new text end new text begin Notwithstanding the provisions of Minnesota new text end
59.17
new text begin Statutes, section 469.176, subdivision 1b, the city of Lino Lakes may collect tax new text end
59.18
new text begin increments from tax increment financing district no. 1-10 through December 31, 2023, new text end
59.19
new text begin subject to the conditions in subdivision 2.new text end
59.20
new text begin Subd. 2.new text end new text begin Conditions for extension.new text end new text begin All tax increments remaining in the account new text end
59.21
new text begin for the district after February 1, 2011, and all tax increments collected thereafter, must new text end
59.22
new text begin be used only to pay debt service on bonds issued to finance the interchange of Anoka new text end
59.23
new text begin County Highway 23 and marked Interstate Highway 35W, bonds issued to finance public new text end
59.24
new text begin improvements serving the development known as Legacy at Woods Edge, and any bonds new text end
59.25
new text begin issued to refund those bonds. Minnesota Statutes, sections 469.176, subdivision 4c, and new text end
59.26
new text begin 469.1763 do not apply to expenditures made under this section.new text end
59.27
new text begin EFFECTIVE DATE.new text end new text begin This section is effective upon compliance by the governing new text end
59.28
new text begin body of the city of Lino Lakes with the requirements of Minnesota Statutes, sections new text end
59.29
new text begin 469.1782, subdivision 2, and 645.021, subdivision 3.new text end
59.30 Sec. 17.
new text begin CITY OF TAYLORS FALLS; BORDER CITY DEVELOPMENT ZONE.new text end
60.1
new text begin Subdivision 1.new text end new text begin Authorization.new text end new text begin The governing body of the city of Taylors Falls may new text end
60.2
new text begin designate all or any part of the city as a border city development zone.new text end
60.3
new text begin Subd. 2.new text end new text begin Application of general law.new text end new text begin (a) Minnesota Statutes, sections 469.1731 to new text end
60.4
new text begin 469.1735, apply to the border city development zones designated under this section. The new text end
60.5
new text begin governing body of the city may exercise the powers granted under Minnesota Statutes, new text end
60.6
new text begin sections 469.1731 to 469.1735, including powers that apply outside of the zones.new text end
60.7
new text begin (b) The allocation under subdivision 3 for purposes of Minnesota Statutes, section new text end
60.8
new text begin 469.1735, subdivision 2, is appropriated to the commissioner of revenue.new text end
60.9
new text begin Subd. 3.new text end new text begin Allocation of state tax reductions.new text end new text begin (a) The cumulative total amount of the new text end
60.10
new text begin state portion of the tax reductions for all years of the program under Minnesota Statutes, new text end
60.11
new text begin sections 469.1731 to 469.1735, for the city of Taylors Falls, is limited to $100,000.new text end
60.12
new text begin (b) This allocation may be used for tax reductions provided in Minnesota Statutes, new text end
60.13
new text begin section 469.1732 or 469.1734, or for reimbursements under Minnesota Statutes, section new text end
60.14
new text begin 469.1735, subdivision 3, but only if the governing body of the city of Taylors Falls new text end
60.15
new text begin determines that the tax reduction or offset is necessary to enable a business to expand new text end
60.16
new text begin within the city or to attract a business to the city.new text end
60.17
new text begin (c) The commissioner of revenue may waive the limit under this subdivision using new text end
60.18
new text begin the same rules and standards provided in Minnesota Statutes, section 469.169, subdivision new text end
60.19
new text begin 12, paragraph (b).new text end
60.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
60.21 Sec. 18.
new text begin APPROPRIATION.new text end
60.22
new text begin Except as otherwise provided by law, $500,000 is appropriated to the Minnesota new text end
60.23
new text begin science and technology fund for fiscal year 2012 and any unspent money carries over new text end
60.24
new text begin to fiscal year 2013. Notwithstanding section 116W.32, subdivision 1, clause (4), up to new text end
60.25
new text begin $107,000 of the appropriation may be used for administrative expenses of the authority. new text end
60.26
new text begin This is a onetime appropriation and is not added to the authority's base budget.new text end
60.27
ARTICLE 5
60.28
LOCAL TAXES
60.29 Section 1. Minnesota Statutes 2010, section 297A.99, subdivision 1, is amended to
60.30read:
60.31 Subdivision 1.
Authorization; scope. (a) A political subdivision of this state may
60.32impose a general sales tax (1) under section
297A.992, (2) under section
297A.993, (3) if
61.1permitted by special law enacted prior to May 20, 2008, or (4) if the political subdivision
61.2enacted and imposed the tax before January 1, 1982, and its predecessor provision.
61.3 (b) This section governs the imposition of a general sales tax by the political
61.4subdivision. The provisions of this section preempt the provisions of any special law:
61.5 (1) enacted before June 2, 1997, or
61.6 (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
61.7provision from this section's rules by reference.
61.8 (c) This section does not apply to or preempt a sales tax on motor vehicles or a
61.9special excise tax on motor vehicles.
61.10 (d) Until after May 31, 2010, a political subdivision may not advertise, promote,
61.11expend funds, or hold a referendum to support imposing a local option sales tax unless
61.12it is for extension of an existing tax or the tax was authorized by a special law enacted
61.13prior to May 20, 2008.
61.14
new text begin (d) A political subdivision may not advertise or expend funds for the promotion of a new text end
61.15
new text begin referendum to support imposing a local option sales tax. A political subdivision may only new text end
61.16
new text begin expend funds to conduct the referendum.new text end
61.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
61.18 Sec. 2. Minnesota Statutes 2010, section 297A.99, subdivision 3, is amended to read:
61.19 Subd. 3.
Requirements for adoption, use, termination. (a) Imposition of a local
61.20sales tax is subject to approval by voters of the political subdivision at a general election.
new text begin new text end
61.21
new text begin The election must be conducted before the governing body of the political subdivision new text end
61.22
new text begin requests legislative approval of the tax.new text end
61.23(b) The proceeds of the tax must be dedicated exclusively to payment of the cost of a
61.24specific capital improvement which is designated at least 90 days before the referendum
61.25on imposition of the tax is conducted.
61.26(c) The tax must terminate after the improvement designated under paragraph (b)
61.27has been completed.
61.28(d) After a sales tax imposed by a political subdivision has expired or been
61.29terminated, the political subdivision is prohibited from imposing a local sales tax for a
61.30period of one year. Notwithstanding subdivision 13, this paragraph applies to all local
61.31sales taxes in effect at the time of or imposed after May 26, 1999.
61.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
61.33 Sec. 3. Minnesota Statutes 2010, section 473.757, subdivision 11, is amended to read:
62.1 Subd. 11.
Uses of tax. (a) Revenues received from the tax imposed under
62.2subdivision 10 may be used:
62.3(1) to pay costs of collection;
62.4(2) to pay or reimburse or secure the payment of any principal of, premium, or
62.5interest on bonds issued in accordance with this act;
62.6(3) to pay costs and make expenditures and grants described in this section, including
62.7financing costs related to them;
62.8(4) to maintain reserves for the foregoing purposes deemed reasonable and
62.9appropriate by the county;
62.10(5) to pay for operating costs of the ballpark authority other than the cost of
62.11operating or maintaining the ballpark; and
62.12(6) to make expenditures and grants for youth activities and amateur sports and
62.13extension of library hours as described in subdivision 2;
62.14and for no other purpose.
62.15(b) Revenues from the tax designated for use under paragraph (a), clause (5), must
62.16be deposited in the operating fund of the ballpark authority.
62.17(c) After completion of the ballpark and public infrastructure, the tax revenues not
62.18required for current payments of the expenditures described in paragraph (a), clauses (1) to
62.19(6), shall be used to (i) redeem or defease the bonds and (ii) prepay or establish a fund for
62.20payment of future obligations under grants or other commitments for future expenditures
62.21which are permitted by this section. Upon the redemption or defeasance of the bonds and
62.22the establishment of reserves adequate to meet such future obligations, the taxes shall
62.23terminate and shall not be reimposed.
new text begin For purposes of this subdivision, "reserves adequate new text end
62.24
new text begin to meet such future obligations" means a reserve that does not exceed the net present value new text end
62.25
new text begin of the county's obligation to make grants under paragraph (a), clauses (5) and (6), and to new text end
62.26
new text begin fund the reserve for capital improvements required under section 473.759, subdivision 3, new text end
62.27
new text begin for the 30-year period beginning on the date of the original issuance of the bonds, less new text end
62.28
new text begin those obligations that the county has already paid.new text end
62.29
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
62.30 Sec. 4. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by
62.31Laws 2006, chapter 259, article 3, section 3, is amended to read:
62.32 Subdivision 1.
Sales tax authorized. new text begin (a) new text end Notwithstanding Minnesota Statutes,
62.33section 477A.016, or any other contrary provision of law, ordinance, or city charter, the
62.34city of Hermantown may, by ordinance, impose an additional sales tax of up to one
62.35percent on sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that
63.1occur within the city. The proceeds of the tax imposed under this section must be used to
63.2meet the costs of:
63.3 (1) extending a sewer interceptor line;
63.4 (2) construction of a booster pump station, reservoirs, and related improvements
63.5to the water system; and
63.6 (3) construction of a building containing a police and fire station and an
63.7administrative services facility.
63.8
new text begin (b) If the city imposed a sales tax of only one-half of one percent under paragraph new text end
63.9
new text begin (a), it may increase the tax to one percent to fund the purposes under paragraph (a) new text end
63.10
new text begin provided it is approved by the voters at a general election held before December 31, 2012.new text end
63.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following compliance by the new text end
63.12
new text begin city of Hermantown with Minnesota Statutes, section 645.021, subdivision 3.new text end
63.13 Sec. 5. Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by
63.14Laws 2005, First Special Session chapter 3, article 5, section 28, is amended to read:
63.15 Subd. 3.
Use of revenues. new text begin (a) new text end Revenues received from the taxes authorized by
63.16subdivisions 1 and 2 must be used by the city to pay for the cost of collecting and
63.17administering the taxes and to pay for the following projects:
63.18 (1) transportation infrastructure improvements including regional highway and
63.19airport improvements;
63.20 (2) improvements to the civic center complex;
63.21 (3) a municipal water, sewer, and storm sewer project necessary to improve regional
63.22ground water quality; and
63.23 (4) construction of a regional recreation and sports center and other higher education
63.24facilities available for both community and student use.
63.25
new text begin (b) new text end The total amount of capital expenditures or bonds for these projects
new text begin listed in new text end
63.26
new text begin paragraph (a)new text end that may be paid from the revenues raised from the taxes authorized in this
63.27section may not exceed $111,500,000. The total amount of capital expenditures or bonds
63.28for the project in clause (4) that may be paid from the revenues raised from the taxes
63.29authorized in this section may not exceed $28,000,000.
63.30
new text begin (c) In addition to the projects authorized in paragraph (a) and not subject to the new text end
63.31
new text begin amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an new text end
63.32
new text begin election under subdivision 5, paragraph (c), use the revenues received from the taxes and new text end
63.33
new text begin bonds authorized in this section to pay the costs of or bonds for the following purposes:new text end
63.34
new text begin (1) $17,000,000 for capital expenditures and bonds for the following Olmsted new text end
63.35
new text begin County transportation infrastructure improvements:new text end
64.1
new text begin (i) County State Aid Highway 34 reconstruction;new text end
64.2
new text begin (ii) Trunk Highway 63 and County State Aid Highway 16 interchange; new text end
64.3
new text begin (iii) phase II of the Trunk Highway 52 and County State Aid Highway 22 new text end
64.4
new text begin interchange;new text end
64.5
new text begin (iv) widening of County State Aid Highway 22 West Circle Drive; and new text end
64.6
new text begin (v) 60th Avenue Northwest corridor preservation;new text end
64.7
new text begin (2) $30,000,000 for city transportation projects including:new text end
64.8
new text begin (i) Trunk Highway 52 and 65th Street interchange;new text end
64.9
new text begin (ii) NW transportation corridor acquisition; new text end
64.10
new text begin (iii) Phase I of the Trunk Highway 52 and County State Aid Highway 22 interchange;new text end
64.11
new text begin (iv) Trunk Highway 14 and Trunk Highway 63 intersection;new text end
64.12
new text begin (v) Southeast transportation corridor acquisition;new text end
64.13
new text begin (vi) Rochester International Airport expansion; and new text end
64.14
new text begin (vii) a transit operations center bus facility;new text end
64.15
new text begin (3) $14,000,000 for the University of Minnesota Rochester academic and new text end
64.16
new text begin complementary facilities;new text end
64.17
new text begin (4) $6,500,000 for the Rochester Community and Technical College/Winona State new text end
64.18
new text begin University career technical education and science and math facilities;new text end
64.19
new text begin (5) $6,000,000 for the Rochester Community and Technical College regional new text end
64.20
new text begin recreation facilities at University Center Rochester;new text end
64.21
new text begin (6) $20,000,000 for the Destination Medical Community Initiative;new text end
64.22
new text begin (7) $8,000,000 for the regional public safety and 911 dispatch center facilities;new text end
64.23
new text begin (8) $20,000,000 for a regional recreation/senior center;new text end
64.24
new text begin (9) $10,000,000 for an economic development fund; andnew text end
64.25
new text begin (10) $8,000,000 for downtown infrastructure.new text end
64.26
new text begin (d) No revenues from the taxes raised from the taxes authorized in subdivisions 1 new text end
64.27
new text begin and 2 may be used to fund transportation improvements related to a railroad bypass that new text end
64.28
new text begin would divert traffic from the city of Rochester.new text end
64.29
new text begin (e) The city shall use $5,000,000 of the money allocated to the purpose in paragraph new text end
64.30
new text begin (c), clause (9), for grants to the cities of Byron, Chatfield, Dodge Center, Dover, Elgin, new text end
64.31
new text begin Eyota, Kasson, Mantorville, Oronoco, Pine Island, Plainview, St. Charles, Stewartville, new text end
64.32
new text begin Zumbrota, Spring Valley, West Concord, and Hayfield for economic development projects new text end
64.33
new text begin that these communities would fund through their economic development authority or new text end
64.34
new text begin housing and redevelopment authority.new text end
64.35
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
65.1 Sec. 6. Laws 1998, chapter 389, article 8, section 43, subdivision 4, as amended by
65.2Laws 2005, First Special Session chapter 3, article 5, section 29, is amended to read:
65.3 Subd. 4.
Bonding authority. (a) The city may issue bonds under Minnesota
65.4Statutes, chapter 475, to finance the capital expenditure and improvement projects.
65.5An election to approve up to $71,500,000 in bonds under Minnesota Statutes, section
65.6475.58
, may be held in combination with the election to authorize imposition of the tax
65.7under subdivision 1. Whether to permit imposition of the tax and issuance of bonds
65.8may be posed to the voters as a single question. The question must state that the sales
65.9tax revenues are pledged to pay the bonds, but that the bonds are general obligations
65.10and will be guaranteed by the city's property taxes. An election to approve up to an
65.11additional $40,000,000 of bonds under Minnesota Statutes, section
475.58, may be held
65.12in combination with the election to authorize extension of the tax under subdivision 5,
65.13paragraph (b).
new text begin An election to approve bonds under Minnesota Statutes, section 475.58, new text end
65.14
new text begin in an amount not to exceed $139,500,000 plus an amount equal to the costs of issuance new text end
65.15
new text begin of the bonds, may be held in combination with the election to authorize the extension of new text end
65.16
new text begin the tax under subdivision 5, paragraph (c).new text end
65.17
new text begin (b) new text end The city may
new text begin shallnew text end enter into an agreement with Olmsted County under which the
65.18city and the county agree to jointly undertake and finance certain roadway infrastructure
65.19improvements. The agreement may
new text begin shallnew text end provide that the city will make available to the
65.20county a portion of the sales tax revenues collected pursuant to the authority granted in
65.21this section and the bonding authority provided in this subdivision. The county may,
65.22pursuant to the agreement, issue its general obligation bonds in a principal amount not
65.23exceeding the amount authorized by its agreement with the city payable primarily from
65.24the sales tax revenues from the city under the agreement. The county's bonds must be
65.25issued in accordance with the provisions of Minnesota Statutes, chapter 475, except that
65.26no election is required for the issuance of the bonds and the bonds are not included in
65.27the net debt of the county.
65.28 (b)
new text begin (c)new text end The issuance of bonds under this subdivision is not subject to Minnesota
65.29Statutes, section
275.60.
65.30 (c)
new text begin (d) new text end The bonds are not included in computing any debt limitation applicable to the
65.31city, and the levy of taxes under Minnesota Statutes, section
475.61, to pay principal of
65.32and interest on the bonds is not subject to any levy limitation.
65.33
new text begin (e) new text end The aggregate principal amount of bonds, plus the aggregate of the taxes used
65.34directly to pay eligible capital expenditures and improvements
new text begin for projects listed in new text end
65.35
new text begin subdivision 3, paragraph (a),new text end may not exceed $111,500,000, plus an amount equal to the
65.36costs related to issuance of the bonds.
new text begin The aggregate principal amount of bonds plus the new text end
66.1
new text begin aggregate of the taxes used directly to pay the costs of eligible projects under subdivision new text end
66.2
new text begin 3, paragraph (c), may not exceed $139,500,000 plus an amount equal to the costs of new text end
66.3
new text begin issuance of the bonds.new text end
66.4 (d)
new text begin (f)new text end The taxes may be pledged to and used for the payment of the bonds and
66.5any bonds issued to refund them, only if the bonds and any refunding bonds are general
66.6obligations of the city.
66.7
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
66.8 Sec. 7. Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by
66.9Laws 2005, First Special Session chapter 3, article 5, section 30, is amended to read:
66.10 Subd. 5.
Termination of taxes. (a) The taxes imposed under subdivisions 1 and
66.112 expire at the later of (1) December 31, 2009, or (2) when the city council determines
66.12that sufficient funds have been received from the taxes to finance the first $71,500,000
66.13of capital expenditures and bonds for the projects authorized in subdivision 3, including
66.14the amount to prepay or retire at maturity the principal, interest, and premium due on any
66.15bonds issued for the projects under subdivision 4, unless the taxes are extended as allowed
66.16in paragraph (b). Any funds remaining after completion of the project and retirement or
66.17redemption of the bonds shall also be used to fund the projects under subdivision 3. The
66.18taxes imposed under subdivisions 1 and 2 may expire at an earlier time if the city so
66.19determines by ordinance.
66.20 (b) Notwithstanding Minnesota Statutes, sections
297A.99 and
477A.016, or any
66.21other contrary provision of law, ordinance, or city charter, the city of Rochester may, by
66.22ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009,
66.23if approved by the voters of the city at a special election in 2005 or the general election in
66.242006. The question put to the voters must indicate that an affirmative vote would allow
66.25up to an additional $40,000,000 of sales tax revenues be raised and up to $40,000,000
66.26of bonds to be issued above the amount authorized in the June 23, 1998, referendum for
66.27the projects specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are
66.28extended under this paragraph, the taxes expire when the city council determines that
66.29sufficient funds have been received from the taxes to finance the projects and to prepay
66.30or retire at maturity the principal, interest, and premium due on any bonds issued for the
66.31projects under subdivision 4. Any funds remaining after completion of the project and
66.32retirement or redemption of the bonds may be placed in the general fund of the city.
66.33
new text begin (c) Notwithstanding Minnesota Statutes, sections new text end
new text begin and new text end
new text begin , or any new text end
66.34
new text begin other contrary provision of law, ordinance, or city charter, the city of Rochester may, by new text end
66.35
new text begin ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond the date the city new text end
67.1
new text begin council determines that sufficient funds have been received from the taxes to finance new text end
67.2
new text begin $111,500,000 of expenditures and bonds for the projects authorized in subdivision 3, new text end
67.3
new text begin paragraph (a), plus an amount equal to the costs of issuance of the bonds and including new text end
67.4
new text begin the amount to prepay or retire at maturity the principal, interest, and premiums due on new text end
67.5
new text begin any bonds issued for the projects under subdivision 4, paragraph (a), if approved by the new text end
67.6
new text begin voters of the city at the general election in 2012. If the election to authorize the additional new text end
67.7
new text begin $139,500,000 of bonds plus an amount equal to the costs of the issuance of the bonds is new text end
67.8
new text begin placed on the general election ballot in 2012, the city may continue to collect the taxes new text end
67.9
new text begin authorized in subdivisions 1 and 2 until December 31, 2012. The question put to the new text end
67.10
new text begin voters must indicate that an affirmative vote would allow sales tax revenues be raised for new text end
67.11
new text begin an extended period of time and an additional $139,500,000 of bonds plus an amount new text end
67.12
new text begin equal to the costs of issuance of the bonds, to be issued above the amount authorized in new text end
67.13
new text begin the previous elections required under paragraphs (a) and (b) for the projects and amounts new text end
67.14
new text begin specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are extended new text end
67.15
new text begin under this paragraph, the taxes expire when the city council determines that $139,500,000 new text end
67.16
new text begin has been received from the taxes to finance the projects plus an amount sufficient to new text end
67.17
new text begin prepay or retire at maturity the principal, interest, and premium due on any bonds issued new text end
67.18
new text begin for the projects under subdivision 4, including any bonds issued to refund the bonds. Any new text end
67.19
new text begin funds remaining after completion of the projects and retirement or redemption of the new text end
67.20
new text begin bonds may be placed in the general fund of the city.new text end
67.21
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after compliance by the new text end
67.22
new text begin governing body of the city of Rochester with Minnesota Statutes, section 645.021, new text end
67.23
new text begin subdivision 3.new text end
67.24 Sec. 8. Laws 2008, chapter 366, article 7, section 19, subdivision 3, is amended to read:
67.25 Subd. 3.
Use of revenues. new text begin Notwithstanding Minnesota Statutes, section 297A.99, new text end
67.26
new text begin subdivision 3, paragraph (b), new text end the proceeds of the tax imposed under this section shall be
67.27used to pay for the costs of acquisition, construction, improvement, and development of
67.28a
new text begin regional parks, bicycle trails, park land, open space, andnew text end pedestrian bridge
new text begin walkways, new text end
67.29
new text begin as described in the city improvement plan adopted by the city council by resolution on new text end
67.30
new text begin December 12, 2006new text end , and land and buildings for a community and recreation center. The
67.31total amount of revenues from the taxes in subdivisions 1 and 2 that may be used to fund
67.32these projects is $12,000,000 plus any associated bond costs.
68.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after compliance by the new text end
68.2
new text begin governing body of the city of Clearwater with Minnesota Statutes, section 645.021, new text end
68.3
new text begin subdivisions 2 and 3.new text end
68.4 Sec. 9. Laws 2010, chapter 389, article 5, section 6, subdivision 1, is amended to read:
68.5 Subdivision 1.
Authorization. Notwithstanding Minnesota Statutes, section
68.6297A.99, subdivisions 1
, 2, and 3, or
477A.016, or any other law, ordinance, or city
68.7charter, the city of Marshall, if imposed within two
new text begin threenew text end years of the date of final
68.8enactment of this section, may impose any or all of the taxes described in this section.
68.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
68.10 Sec. 10.
new text begin CITY OF CLOQUET; TAXES AUTHORIZED.new text end
68.11
new text begin Subdivision 1.new text end new text begin Sales and use tax.new text end new text begin Notwithstanding Minnesota Statutes, section new text end
68.12
new text begin 297A.99, subdivision 1, 477A.016, or any other provision of law, ordinance, or city new text end
68.13
new text begin charter, if approved by the voters pursuant to Minnesota Statutes, section 297A.99, the new text end
68.14
new text begin city of Cloquet may impose by ordinance a sales and use tax of up to one-half of one new text end
68.15
new text begin percent for the purposes specified in subdivision 3. Except as provided in this section, the new text end
68.16
new text begin provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, new text end
68.17
new text begin collection, and enforcement of the tax authorized under this subdivision.new text end
68.18
new text begin Subd. 2.new text end new text begin Excise tax authorized.new text end new text begin Notwithstanding Minnesota Statutes, section new text end
68.19
new text begin 297A.99, subdivision 1, 477A.016, or any other provision of law, ordinance, or city new text end
68.20
new text begin charter, the city of Cloquet may impose by ordinance, for the purposes specified in new text end
68.21
new text begin subdivision 3, an excise tax of up to $20 per motor vehicle, as defined by ordinance, new text end
68.22
new text begin purchased or acquired from any person engaged within the city in the business of selling new text end
68.23
new text begin motor vehicles at retail.new text end
68.24
new text begin Subd. 3.new text end new text begin Use of revenues.new text end new text begin Revenues received from taxes authorized by subdivisions new text end
68.25
new text begin 1 and 2 must be used by the city to pay the cost of collecting the taxes and to pay for the new text end
68.26
new text begin following projects:new text end
68.27
new text begin (1) $4,500,000 for construction and completion of park improvement projects, new text end
68.28
new text begin including St. Louis River riverfront improvements; Veteran's Park construction and new text end
68.29
new text begin improvements; improvements to the Hilltop Park soccer complex and Braun Park baseball new text end
68.30
new text begin complex; capital equipment and building and grounds improvements at the Pine Valley new text end
68.31
new text begin Park/Pine Valley Hockey Arena/Cloquet Area Recreation Center; and development of new text end
68.32
new text begin pedestrian trails within the city;new text end
69.1
new text begin (2) $5,800,00 for extension of utilities and the construction of all improvements new text end
69.2
new text begin associated with the development of property adjacent to Highway 33 and Interstate new text end
69.3
new text begin Highway 35, including payment of all debt service on bonds issued for these; andnew text end
69.4
new text begin (3) $6,200,000 for engineering and construction of infrastructure improvements, new text end
69.5
new text begin including, but not limited to, storm sewer, sanitary sewer, and water in areas identified as new text end
69.6
new text begin part of the city's comprehensive land use plan.new text end
69.7
new text begin Authorized expenses include, but are not limited to, acquiring property and paying new text end
69.8
new text begin construction expenses related to these improvements, and paying debt service on bonds or new text end
69.9
new text begin other obligations issued to finance acquisition and construction of these improvements.new text end
69.10
new text begin Subd. 4.new text end new text begin Bonding authority.new text end new text begin (a) The city may issue bonds under Minnesota new text end
69.11
new text begin Statutes, chapter 475, to pay capital and administrative expenses for the improvements new text end
69.12
new text begin described in subdivision 3 in an amount that does not exceed $16,500,000. An election to new text end
69.13
new text begin approve the bonds under Minnesota Statutes, section 475.58, is not required.new text end
69.14
new text begin (b) The issuance of bonds under this subdivision is not subject to Minnesota Statutes, new text end
69.15
new text begin sections 275.60 and 275.61.new text end
69.16
new text begin (c) The debt represented by the bonds is not included in computing any debt new text end
69.17
new text begin limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section new text end
69.18
new text begin 475.61, to pay principal of and interest on the bonds is not subject to any levy limitation.new text end
69.19
new text begin Subd. 5.new text end new text begin Termination of taxes.new text end new text begin The taxes imposed under subdivisions 1 and 2 new text end
69.20
new text begin expire at the earlier of (1) 30 years, or (2) when the city council determines that the amount new text end
69.21
new text begin of revenues received from the taxes to finance the improvements described in subdivision new text end
69.22
new text begin 3 first equals or exceeds $16,500,000, plus the additional amount needed to pay the costs new text end
69.23
new text begin related to issuance of bonds under subdivision 4, including interest on the bonds. Any new text end
69.24
new text begin funds remaining after completion of the project and retirement or redemption of the bonds new text end
69.25
new text begin may be placed in the general fund of the city. The taxes imposed under subdivisions 1 and new text end
69.26
new text begin 2 may expire at an earlier time if the city so determines by ordinance.new text end
69.27
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after the governing body of new text end
69.28
new text begin the city of Cloquet and its chief clerical officer timely comply with Minnesota Statutes, new text end
69.29
new text begin section 645.021, subdivisions 2 and 3.new text end
69.30 Sec. 11.
new text begin CITY OF FERGUS FALLS; SALES AND USE TAX AUTHORIZED.new text end
69.31
new text begin Subdivision 1.new text end new text begin Sales and use tax.new text end new text begin Notwithstanding Minnesota Statutes, section new text end
69.32
new text begin 297A.99, subdivision 1, or 477A.016, or any other provision of law, ordinance, or city new text end
69.33
new text begin charter, as approved by the voters at the November 2, 2010 general election, the city new text end
70.1
new text begin of Fergus Falls may impose by ordinance a sales and use tax of up to one-half of one new text end
70.2
new text begin percent for the purposes specified in subdivision 2. Except as provided in this section, the new text end
70.3
new text begin provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, new text end
70.4
new text begin collection, and enforcement of the tax authorized under this subdivision.new text end
70.5
new text begin Subd. 2.new text end new text begin Use of revenues.new text end new text begin Revenues received from taxes authorized by subdivision new text end
70.6
new text begin 1 must be used by the city of Fergus Falls to pay the cost of collecting the tax and to pay for new text end
70.7
new text begin all or part of the costs of the acquisition and betterment of a regional community ice arena new text end
70.8
new text begin facility. Authorized expenses include, but are not limited to, acquiring property, predesign, new text end
70.9
new text begin design, and paying construction, furnishing, and equipment costs related to the facility and new text end
70.10
new text begin paying debt service on bonds or other obligations issued by the Fergus Falls Port Authority new text end
70.11
new text begin to finance the facility. The amount of revenues from the tax imposed under subdivision 1 new text end
70.12
new text begin that may be used to finance the facility and any associated costs is limited to $6,600,000.new text end
70.13
new text begin Subd. 3.new text end new text begin Termination of taxes.new text end new text begin The tax imposed under this section expires when new text end
70.14
new text begin the Fergus Falls City Council determines that sufficient funds have been received from new text end
70.15
new text begin the taxes to finance the facility and to prepay or retire at maturity the principal, interest, new text end
70.16
new text begin and premium due on any bonds, including refunding bonds, issued by the Fergus Falls new text end
70.17
new text begin Port Authority for the facility. Any funds remaining after completion of the facility and new text end
70.18
new text begin retirement or redemption of the bonds may be placed in the general fund of the city of new text end
70.19
new text begin Fergus Falls. The tax imposed under subdivision 1 may expire at an earlier time if the new text end
70.20
new text begin city so determines by ordinance.new text end
70.21
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after the governing body new text end
70.22
new text begin of the city of Fergus Falls and its chief clerical officer timely comply with Minnesota new text end
70.23
new text begin Statutes, section 645.021, subdivisions 2 and 3.new text end
70.24 Sec. 12.
new text begin CITY OF HUTCHINSON; TAXES AUTHORIZED.new text end
70.25
new text begin Subdivision 1.new text end new text begin Sales and use tax.new text end new text begin Notwithstanding Minnesota Statutes, section new text end
70.26
new text begin 477A.016, or any other provision of law, ordinance, or city charter, as approved by new text end
70.27
new text begin the voters at a referendum held at the 2010 general election, the city of Hutchinson new text end
70.28
new text begin may impose by ordinance a sales and use tax of up to one-half of one percent for the new text end
70.29
new text begin purposes specified in subdivision 3. Except as otherwise provided in this section, new text end
70.30
new text begin Minnesota Statutes, section 297A.99, governs the imposition, administration, collection, new text end
70.31
new text begin and enforcement of the tax authorized under this subdivision. Minnesota Statutes, section new text end
70.32
new text begin 297A.99, subdivision 1, paragraph (d), does not apply to this section.new text end
71.1
new text begin Subd. 2.new text end new text begin Excise tax authorized.new text end new text begin Notwithstanding Minnesota Statutes, section new text end
71.2
new text begin 477A.016, or any other provision of law, ordinance, or city charter, the city of Hutchinson new text end
71.3
new text begin may impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up new text end
71.4
new text begin to $20 per motor vehicle, as defined by ordinance, purchased or acquired from any person new text end
71.5
new text begin engaged within the city in the business of selling motor vehicles at retail.new text end
71.6
new text begin Subd. 3.new text end new text begin Use of revenues.new text end new text begin Revenues received from the taxes authorized by this new text end
71.7
new text begin section must be used to pay the cost of collecting and administering the tax and to finance new text end
71.8
new text begin the costs of constructing the water treatment facility and renovating the wastewater new text end
71.9
new text begin treatment facility in the city of Hutchinson. Authorized costs include, but are not limited new text end
71.10
new text begin to, construction and engineering costs of the projects and associated bond costs.new text end
71.11
new text begin Subd. 4.new text end new text begin Termination of tax.new text end new text begin The taxes authorized under subdivisions 1 and 2 new text end
71.12
new text begin terminate at the earlier of: (1) 18 years after the date of initial imposition of the tax; or new text end
71.13
new text begin (2) when the Hutchinson City Council determines that the amount of revenues raised is new text end
71.14
new text begin sufficient to pay for the projects under subdivision 3, plus the amount needed to finance new text end
71.15
new text begin the capital and administrative costs for the projects specified in subdivision 3, and to repay new text end
71.16
new text begin or retire at maturity the principal, interest, and premium due on any bonds issued for the new text end
71.17
new text begin projects. Any funds remaining after completion of the projects specified in subdivision new text end
71.18
new text begin 3 and retirement or redemption of the associated bonds may be placed in the general new text end
71.19
new text begin fund of the city. The taxes imposed under subdivisions 1 and 2 may expire at an earlier new text end
71.20
new text begin time if the city so determines by ordinance. new text end
71.21
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after compliance by the new text end
71.22
new text begin governing body of the city of Hutchinson with Minnesota Statutes, section 645.021, new text end
71.23
new text begin subdivisions 2 and 3.new text end
71.24 Sec. 13.
new text begin CITY OF LANESBORO; SALES AND USE TAX AUTHORIZED.new text end
71.25
new text begin Subdivision 1.new text end new text begin Sales and use tax authorized.new text end new text begin Notwithstanding Minnesota Statutes, new text end
71.26
new text begin sections 297A.99, subdivision 1, and 477A.016, or any other provision of law, ordinance, new text end
71.27
new text begin or city charter, as approved by the voters at the November 2, 2010, general election, the new text end
71.28
new text begin city of Lanesboro may impose by ordinance a sales and use tax of up to one-half of one new text end
71.29
new text begin percent for the purposes specified in subdivision 2. Except as provided in this section, new text end
71.30
new text begin the provisions of Minnesota Statutes, section 297A.99, govern the imposition of the tax new text end
71.31
new text begin authorized under this subdivision.new text end
71.32
new text begin Subd. 2.new text end new text begin Use of revenues.new text end new text begin Revenues received from the tax authorized under new text end
71.33
new text begin subdivision 1 must be used by the city of Lanesboro to pay the costs of collecting the tax new text end
72.1
new text begin and to pay for all or a part of the improvements to city streets and utility systems, and the new text end
72.2
new text begin betterment of city municipal buildings consisting of (i) street and utility improvements to new text end
72.3
new text begin Calhoun Avenue, Fillmore Avenue, Kenilworth Avenue, Pleasant Street, Kirkwood Street, new text end
72.4
new text begin Auburn Avenue, and Zenith Street, and street light replacement on State Highways 250 new text end
72.5
new text begin and 16; (ii) improvements to utility systems consisting of wastewater treatment facility new text end
72.6
new text begin improvements and electric utility improvements to the Lanesboro High Hazard Dam; and new text end
72.7
new text begin (iii) improvements to the Lanesboro community center, library, and city hall, including new text end
72.8
new text begin paying debt service on bonds or other obligations issued to fund these projects under new text end
72.9
new text begin subdivision 3. The total amount of revenues from the taxes in subdivision 1 that may be new text end
72.10
new text begin used to fund these projects is $800,000 plus any associated bond costs.new text end
72.11
new text begin Subd. 3.new text end new text begin Bonding authority.new text end new text begin The city of Lanesboro may issue bonds under new text end
72.12
new text begin Minnesota Statutes, chapter 475, to pay capital and administrative expenses related to the new text end
72.13
new text begin projects authorized in subdivision 2. An election to approve the bonds under Minnesota new text end
72.14
new text begin Statutes, section 475.58, is not required. The issuance of bonds under this subdivision new text end
72.15
new text begin is not subject to Minnesota Statutes, sections 275.60 and 275.61. The bonds are not new text end
72.16
new text begin included in computing any debt limitation applicable to the city and the levy of taxes new text end
72.17
new text begin under Minnesota Statutes, section 475.61, to pay principal and interest on the bonds is new text end
72.18
new text begin not subject to any levy limitation.new text end
72.19
new text begin The aggregate principal amount of the bonds plus the aggregate of the taxes used new text end
72.20
new text begin directly to pay costs of the projects listed in subdivision 2 may not exceed $800,000, plus new text end
72.21
new text begin an amount equal to the costs related to issuance of the bonds and capitalized interest. new text end
72.22
new text begin The taxes authorized in subdivision 1 may be pledged and used for payments of new text end
72.23
new text begin the bonds and bonds issued to refund them, only if the bonds and any refunding bonds new text end
72.24
new text begin are general obligations of the city.new text end
72.25
new text begin Subd. 4.new text end new text begin Termination of tax.new text end new text begin The tax imposed under subdivision 1 expires when new text end
72.26
new text begin the Lanesboro City Council determines that sufficient funds have been raised from the new text end
72.27
new text begin taxes to finance the projects authorized under subdivision 2 and to prepay or retire at new text end
72.28
new text begin maturity the principal, interest, and premium due on any bonds issued under subdivision 3. new text end
72.29
new text begin Any funds remaining after completion of the project and retirement or redemption of the new text end
72.30
new text begin bonds may be placed in the general fund of the city. The tax imposed under subdivision 1 new text end
72.31
new text begin may expire at an earlier time if the city so determines by ordinance.new text end
72.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after the governing body of new text end
72.33
new text begin the city of Lanesboro and its chief clerical officer comply with Minnesota Statutes, section new text end
72.34
new text begin 645.021, subdivisions 2 and 3.new text end
73.1 Sec. 14.
new text begin CITY OF MARSHALL; SALES AND USE TAX.new text end
73.2
new text begin Subdivision 1.new text end new text begin Authorization.new text end new text begin Notwithstanding Minnesota Statutes, section new text end
73.3
new text begin 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city charter, new text end
73.4
new text begin the city of Marshall, if approved by the voters at a general election held within two new text end
73.5
new text begin years of the date of final enactment of this section, may impose the tax authorized under new text end
73.6
new text begin subdivision 2. Two separate ballot questions must be presented to the voters, one for each new text end
73.7
new text begin of the two facility projects named in subdivision 3.new text end
73.8
new text begin Subd. 2.new text end new text begin Sales and use tax authorized.new text end new text begin The city of Marshall may impose by new text end
73.9
new text begin ordinance a sales and use tax of up to one-half of one percent for the purposes specified in new text end
73.10
new text begin subdivision 3. The provisions of Minnesota Statutes, section 297A.99, except subdivisions new text end
73.11
new text begin 1 and 2, govern the imposition, administration, collection, and enforcement of the tax new text end
73.12
new text begin authorized under this subdivision.new text end
73.13
new text begin Subd. 3.new text end new text begin Use of sales and use tax revenues.new text end new text begin The revenues derived from the tax new text end
73.14
new text begin authorized under subdivision 2 must be used by the city of Marshall to pay the costs of new text end
73.15
new text begin collecting and administering the sales and use tax and to pay all or part of the costs of the new text end
73.16
new text begin new and existing facilities of the Minnesota Emergency Response and Industry Training new text end
73.17
new text begin Center and all or part of the costs of the new facilities of the Southwest Minnesota new text end
73.18
new text begin Regional Amateur Sports Center. Authorized expenses include, but are not limited to, new text end
73.19
new text begin acquiring property, predesign, design, and paying construction, furnishing, and equipment new text end
73.20
new text begin costs related to these facilities and paying debt service on bonds or other obligations issued new text end
73.21
new text begin by the city of Marshall under subdivision 4 to finance the capital costs of these facilities.new text end
73.22
new text begin Subd. 4.new text end new text begin Bonds.new text end new text begin (a) If the imposition of a sales and use tax is approved by the voters, new text end
73.23
new text begin the city of Marshall may issue bonds under Minnesota Statutes, chapter 475, to finance all new text end
73.24
new text begin or a portion of the costs of the facilities authorized in subdivision 3, and may issue bonds new text end
73.25
new text begin to refund bonds previously issued. The aggregate principal amount of bonds issued under new text end
73.26
new text begin this subdivision may not exceed $17,290,000, plus an amount to be applied to the payment new text end
73.27
new text begin of the costs of issuing the bonds. The bonds may be paid from or secured by any funds new text end
73.28
new text begin available to the city of Marshall, including the tax authorized under subdivision 2. new text end
73.29
new text begin (b) The bonds are not included in computing any debt limitation applicable to the new text end
73.30
new text begin city of Marshall, and any levy of taxes under Minnesota Statutes, section 475.61, to pay new text end
73.31
new text begin principal and interest on the bonds, is not subject to any levy limitation. A separate new text end
73.32
new text begin election to approve the bonds under Minnesota Statutes, section 475.58, is not required. new text end
73.33
new text begin Subd. 5.new text end new text begin Termination of taxes.new text end new text begin The tax imposed under subdivision 2 expires at the new text end
73.34
new text begin earlier of (1) 15 years after the tax is first imposed, or (2) when the city council determines new text end
74.1
new text begin that the amount of revenues received from the tax to pay for the capital and administrative new text end
74.2
new text begin costs of the facilities under subdivision 3 first equals or exceeds the amount authorized to new text end
74.3
new text begin be spent for the facilities plus the additional amount needed to pay the costs related to new text end
74.4
new text begin issuance of the bonds under subdivision 4, including interest on the bonds. Any funds new text end
74.5
new text begin remaining after payment of all such costs and retirement or redemption of the bonds shall new text end
74.6
new text begin be placed in the general fund of the city. The tax imposed under subdivision 2 may expire new text end
74.7
new text begin at an earlier time if the city so determines by ordinance.new text end
74.8
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after compliance by the new text end
74.9
new text begin governing body of the city of Marshall with Minnesota Statutes, section 645.021, new text end
74.10
new text begin subdivision 3.new text end
74.11 Sec. 15.
new text begin CITY OF MEDFORD; SALES AND USE TAX.new text end
74.12
new text begin Subdivision 1.new text end new text begin Sales and use tax authorized.new text end new text begin Notwithstanding Minnesota Statutes, new text end
74.13
new text begin sections 297A.99, subdivision 1, and 477A.016, or any other provision of law, ordinance, new text end
74.14
new text begin or city charter, if approved by the voters pursuant to Minnesota Statutes, section 297A.99, new text end
74.15
new text begin at the next general election, the city of Medford may impose by ordinance a sales and use new text end
74.16
new text begin tax of one-half of one percent for the purposes specified in subdivision 2. Except as new text end
74.17
new text begin otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, new text end
74.18
new text begin govern the imposition, administration, collection, and enforcement of the tax authorized new text end
74.19
new text begin under this subdivision.new text end
74.20
new text begin Subd. 2.new text end new text begin Use of revenues.new text end new text begin The proceeds of the tax imposed under this section must new text end
74.21
new text begin be used by the city of Medford to pay the costs of collecting and administering the tax new text end
74.22
new text begin and to repay loans received from the Minnesota Public Facilities Authority since 2007 new text end
74.23
new text begin that were used to finance $4,200,000 of improvements to the city's water and wastewater new text end
74.24
new text begin systems.new text end
74.25
new text begin Subd. 3.new text end new text begin Termination of taxes.new text end new text begin The tax imposed under this section expires at the new text end
74.26
new text begin earlier of (1) 20 years after the date the taxes are first imposed, or (2) when the Medford new text end
74.27
new text begin City Council determines that the amount of revenues received from the tax equals or new text end
74.28
new text begin exceeds the sum of loans made to the city by the Minnesota Public Facilities Authority new text end
74.29
new text begin as described in subdivision 2, including interest on the loans. Any funds remaining new text end
74.30
new text begin after completion of the repayment of the loans may be placed in the general fund of the new text end
74.31
new text begin city. The tax imposed under subdivision 1 may expire at an earlier time if the city so new text end
74.32
new text begin determines by ordinance.new text end
75.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after compliance by the new text end
75.2
new text begin governing body of the city of Medford with Minnesota Statutes, section 645.021, new text end
75.3
new text begin subdivision 3.new text end
75.4
ARTICLE 6
75.5
PROPERTY TAXES
75.6 Section 1. Minnesota Statutes 2010, section 126C.01, subdivision 3, is amended to read:
75.7 Subd. 3.
Referendum market value. "Referendum market value" means the market
75.8value of all taxable property, excluding property classified as class 2, noncommercial
75.94c(1), or 4c(4)
new text begin , or 4c(12)new text end under section
273.13. The portion of class 2a property consisting
75.10of the house, garage, and surrounding one acre of land of an agricultural homestead is
75.11included in referendum market value. Any class of property, or any portion of a class of
75.12property, that is included in the definition of referendum market value and that has a class
75.13rate of less than one percent under section
273.13 shall have a referendum market value
75.14equal to its net tax capacity multiplied by 100.
75.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2012 and new text end
75.16
new text begin thereafter.new text end
75.17 Sec. 2. Minnesota Statutes 2010, section 272.02, subdivision 39, is amended to read:
75.18 Subd. 39.
Economic development; public purpose. The holding of property by a
75.19political subdivision of the state for later resale for economic development purposes shall
75.20be considered a public purpose in accordance with subdivision 8 for a period not to exceed
75.21eight
new text begin tennew text end years, except that for property located in a city of 5,000 population or under that
75.22is located outside of the metropolitan area as defined in section
473.121, subdivision 2, the
75.23period must not exceed 15 years.
75.24The holding of property by a political subdivision of the state for later resale (1)
75.25which is purchased or held for housing purposes, or (2) which meets the conditions
75.26described in section
469.174, subdivision 10, shall be considered a public purpose in
75.27accordance with subdivision 8.
75.28The governing body of the political subdivision which acquires property which is
75.29subject to this subdivision shall after the purchase of the property certify to the city or
75.30county assessor whether the property is held for economic development purposes or
75.31housing purposes, or whether it meets the conditions of section
469.174, subdivision 10.
75.32If the property is acquired for economic development purposes and buildings or other
75.33improvements are constructed after acquisition of the property, and if more than one-half
75.34of the floor space of the buildings or improvements which is available for lease to or use
76.1by a private individual, corporation, or other entity is leased to or otherwise used by
76.2a private individual, corporation, or other entity the provisions of this subdivision shall
76.3not apply to the property. This subdivision shall not create an exemption from section
76.4272.01, subdivision 2
;
272.68;
273.19; or
469.040, subdivision 3; or other provision of
76.5law providing for the taxation of or for payments in lieu of taxes for publicly held property
76.6which is leased, loaned, or otherwise made available and used by a private person.
76.7
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes levied in 2011, payable new text end
76.8
new text begin in 2012, and thereafter.new text end
76.9 Sec. 3. Minnesota Statutes 2010, section 272.02, is amended by adding a subdivision
76.10to read:
76.11
new text begin Subd. 95.new text end new text begin Electric generation facility; personal property.new text end new text begin (a) Notwithstanding new text end
76.12
new text begin subdivision 9, clause (a), and section 453.54, subdivision 20, attached machinery and other new text end
76.13
new text begin personal property that is part of a multiple reciprocating engine electric generation facility new text end
76.14
new text begin that adds more than 20 and less than 30 megawatts of installed capacity at a site where new text end
76.15
new text begin there is presently more than ten megawatts and fewer than 15 megawatts of installed new text end
76.16
new text begin capacity and that meets the requirements of this subdivision is exempt from taxation and new text end
76.17
new text begin from payments in lieu of taxation. At the time of construction, the facility must:new text end
76.18
new text begin (1) be designed to utilize natural gas as a primary fuel;new text end
76.19
new text begin (2) be owned and operated by a municipal power agency as defined in section new text end
76.20
new text begin 453.52, subdivision 8;new text end
76.21
new text begin (3) be located within one mile of an existing natural gas pipeline;new text end
76.22
new text begin (4) be designed to have black start capability and to furnish emergency backup new text end
76.23
new text begin power service to the city in which it is located;new text end
76.24
new text begin (5) satisfy a resource deficiency identified in an approved integrated resource plan new text end
76.25
new text begin filed under section 216B.2422; and new text end
76.26
new text begin (6) have received, by resolution, the approval of the governing bodies of the city new text end
76.27
new text begin and county in which it is located for the exemption of personal property provided by new text end
76.28
new text begin this subdivision.new text end
76.29
new text begin (b) Construction of the facility must be commenced after December 31, 2011, and new text end
76.30
new text begin before January 1, 2015. Property eligible for this exemption does not include (i) electric new text end
76.31
new text begin transmission lines and interconnections or gas pipelines and interconnections appurtenant new text end
76.32
new text begin to the property or the facility; or (ii) property located on the site on the enactment date new text end
76.33
new text begin of this subdivision.new text end
77.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for assessments in 2012, taxes new text end
77.2
new text begin payable in 2013, and thereafter.new text end
77.3 Sec. 4. Minnesota Statutes 2010, section 273.111, is amended by adding a subdivision
77.4to read:
77.5
new text begin Subd. 17.new text end new text begin Appeal.new text end new text begin If an assessor denies an application for valuation under this new text end
77.6
new text begin section, the applicant may appeal the decision to the local board of appeal and equalization new text end
77.7
new text begin as provided under section 274.01, subdivision 1, paragraph (h).new text end
77.8
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for appeals denied after June 30, new text end
77.9
new text begin 2011.new text end
77.10 Sec. 5. Minnesota Statutes 2010, section 273.121, subdivision 1, is amended to read:
77.11 Subdivision 1.
Notice. Any county assessor or city assessor having the powers of a
77.12county assessor, valuing or classifying taxable real property shall in each year notify those
77.13persons whose property is to be included on the assessment roll that year if the person's
77.14address is known to the assessor, otherwise the occupant of the property. The notice shall
77.15be in writing and shall be sent by ordinary mail at least ten days before the meeting of
77.16the local board of appeal and equalization under section
274.01 or the review process
77.17established under section
274.13, subdivision 1c. Upon written request by the owner of the
77.18property, the assessor may send the notice in electronic form or by electronic mail instead
77.19of on paper or by ordinary mail. It shall contain: (1) the market value for the current and
77.20prior assessment, (2) the limited market value under section
273.11, subdivision 1a, for
77.21the current and prior assessment, (3) the qualifying amount of any improvements under
77.22section
273.11, subdivision 16, for the current assessment, (4)
new text begin (3)new text end the market value subject
77.23to taxation after subtracting the amount of any qualifying improvements for the current
77.24assessment, (5)
new text begin (4)new text end the classification of the property for the current and prior assessment,
77.25(6) a note that if the property is homestead and at least 45 years old, improvements made
77.26to the property may be eligible for a valuation exclusion under section
273.11, subdivision
77.2716
, (7)
new text begin (5)new text end the assessor's office address, and (8)
new text begin (6)new text end the dates, places, and times set for the
77.28meetings of the local board of appeal and equalization, the review process established
77.29under section
274.13, subdivision 1c, and the county board of appeal and equalization.
new text begin If new text end
77.30
new text begin the classification of the property has changed between the current and prior assessments, a new text end
77.31
new text begin specific note to that effect shall be prominently listed on the statement. new text end The commissioner
77.32of revenue shall specify the form of the notice. The assessor shall attach to the assessment
77.33roll a statement that the notices required by this section have been mailed. Any assessor
77.34who is not provided sufficient funds from the assessor's governing body to provide such
78.1notices, may make application to the commissioner of revenue to finance such notices.
78.2The commissioner of revenue shall conduct an investigation and, if satisfied that the
78.3assessor does not have the necessary funds, issue a certification to the commissioner
78.4of management and budget of the amount necessary to provide such notices. The
78.5commissioner of management and budget shall issue a warrant for such amount and shall
78.6deduct such amount from any state payment to such county or municipality. The necessary
78.7funds to make such payments are hereby appropriated. Failure to receive the notice shall in
78.8no way affect the validity of the assessment, the resulting tax, the procedures of any board
78.9of review or equalization, or the enforcement of delinquent taxes by statutory means.
78.10
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for notifications for taxes payable in new text end
78.11
new text begin 2013 and thereafter.new text end
78.12 Sec. 6. Minnesota Statutes 2010, section 273.13, subdivision 25, is amended to read:
78.13 Subd. 25.
Class 4. (a) Class 4a is residential real estate containing four or more
78.14units and used or held for use by the owner or by the tenants or lessees of the owner
78.15as a residence for rental periods of 30 days or more, excluding property qualifying for
78.16class 4d. Class 4a also includes hospitals licensed under sections
144.50 to
144.56, other
78.17than hospitals exempt under section
272.02, and contiguous property used for hospital
78.18purposes, without regard to whether the property has been platted or subdivided. The
78.19market value of class 4a property has a class rate of 1.25 percent.
78.20 (b) Class 4b includes:
78.21 (1) residential real estate containing less than four units that does not qualify as class
78.224bb, other than seasonal residential recreational property;
78.23 (2) manufactured homes not classified under any other provision;
78.24 (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead
78.25farm classified under subdivision 23, paragraph (b) containing two or three units; and
78.26 (4) unimproved property that is classified residential as determined under subdivision
78.2733.
78.28 The market value of class 4b property has a class rate of 1.25 percent.
78.29 (c) Class 4bb includes:
78.30 (1) nonhomestead residential real estate containing one unit, other than seasonal
78.31residential recreational property; and
78.32 (2) a single family dwelling, garage, and surrounding one acre of property on a
78.33nonhomestead farm classified under subdivision 23, paragraph (b).
78.34 Class 4bb property has the same class rates as class 1a property under subdivision 22.
79.1 Property that has been classified as seasonal residential recreational property at
79.2any time during which it has been owned by the current owner or spouse of the current
79.3owner does not qualify for class 4bb.
79.4 (d) Class 4c property includes:
79.5 (1) except as provided in subdivision 22, paragraph (c), real and personal property
79.6devoted to
new text begin commercial new text end temporary and seasonal residential occupancy for recreation
79.7purposes, including real and personal property devoted to temporary and seasonal
79.8residential occupancy for recreation purposes and not devoted to commercial purposes for
79.9
new text begin not new text end more than 250 days in the year preceding the year of assessment. For purposes of this
79.10clause, property is devoted to a commercial purpose on a specific day if any portion of the
79.11property is used for residential occupancy, and a fee is charged for residential occupancy.
79.12Class 4c property under this clause must contain three or more rental units. A "rental unit"
79.13is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
79.14equipped with water and electrical hookups for recreational vehicles. Class 4c property
79.15under this clause must provide recreational activities such as renting ice fishing houses,
79.16boats and motors, snowmobiles, downhill or cross-country ski equipment; provide marina
79.17services, launch services, or guide services; or sell bait and fishing tackle. A camping pad
79.18offered for rent by a property that otherwise qualifies for class 4c under this clause is also
79.19class 4c under this clause regardless of the term of the rental agreement, as long as the use
79.20of the camping pad does not exceed 250 days. In order for a property to be classified as
79.21class 4c, seasonal residential recreational for commercial purposes under this clause,
new text begin either new text end
79.22
new text begin (i) the business located on the property must provide recreational activities, new text end at least 40
79.23percent of the annual gross lodging receipts related to the property must be from business
79.24conducted during 90 consecutive days
new text begin , new text end and either (i)
new text begin (A)new text end at least 60 percent of all paid
79.25bookings by lodging guests during the year must be for periods of at least two consecutive
79.26nights; or (ii)
new text begin (B)new text end at least 20 percent of the annual gross receipts must be from charges
79.27for rental of fish houses, boats and motors, snowmobiles, downhill or cross-country ski
79.28equipment, or charges for marina services, launch services, and guide services, or the sale
79.29of bait and fishing tackle
new text begin providing recreational activitiesnew text end new text begin , or (ii) the business must contain new text end
79.30
new text begin 20 or fewer rental units, and must be located in a township or a city with a population of new text end
79.31
new text begin 2,500 or less located outside the metropolitan area, as defined under section 473.121, new text end
79.32
new text begin subdivision 2, that contains a portion of a state trail administered by the Department of new text end
79.33
new text begin Natural Resourcesnew text end . For purposes of this determination
new text begin item (i)(A)new text end , a paid booking of
79.34five or more nights shall be counted as two bookings. Class 4c property classified under
79.35this clause also includes commercial use real property used exclusively for recreational
79.36purposes in conjunction with other class 4c property classified under this clause and
80.1devoted to temporary and seasonal residential occupancy for recreational purposes, up to a
80.2total of two acres, provided the property is not devoted to commercial recreational use for
80.3more than 250 days in the year preceding the year of assessment and is located within two
80.4miles of the class 4c property with which it is used. Owners of real and personal property
80.5devoted to temporary and seasonal residential occupancy for recreation purposes and all
80.6or a portion of which was devoted to commercial purposes for not more than 250 days in
80.7the year preceding the year of assessment desiring classification as class 4c,
new text begin In order for a new text end
80.8
new text begin property to qualify for classification under this clause, the ownernew text end must submit a declaration
80.9to the assessor designating the cabins or units occupied for 250 days or less in the year
80.10preceding the year of assessment by January 15 of the assessment year. Those cabins or
80.11units and a proportionate share of the land on which they are located must be designated
80.12class 4c under this clause as otherwise provided. The remainder of the cabins or units and
80.13a proportionate share of the land on which they are located will be designated as class 3a.
80.14The owner of property desiring designation as class 4c property under this clause must
80.15provide guest registers or other records demonstrating that the units for which class 4c
80.16designation is sought were not occupied for more than 250 days in the year preceding the
80.17assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar,
80.18(3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility
80.19operated on a commercial basis not directly related to temporary and seasonal residential
80.20occupancy for recreation purposes does not qualify for class 4c
new text begin . For the purposes of this new text end
80.21
new text begin paragraph, "recreational activities" means renting ice fishing houses, boats and motors, new text end
80.22
new text begin snowmobiles, downhill or cross-country ski equipment; providing marina services, launch new text end
80.23
new text begin services, or guide services; or selling bait and fishing tacklenew text end ;
80.24 (2) qualified property used as a golf course if:
80.25 (i) it is open to the public on a daily fee basis. It may charge membership fees or
80.26dues, but a membership fee may not be required in order to use the property for golfing,
80.27and its green fees for golfing must be comparable to green fees typically charged by
80.28municipal courses; and
80.29 (ii) it meets the requirements of section
273.112, subdivision 3, paragraph (d).
80.30 A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
80.31with the golf course is classified as class 3a property;
80.32 (3) real property up to a maximum of three acres of land owned and used by a
80.33nonprofit community service oriented organization and not used for residential purposes
80.34on either a temporary or permanent basis, provided that:
80.35 (i) the property is not used for a revenue-producing activity for more than six days
80.36in the calendar year preceding the year of assessment; or
81.1 (ii) the organization makes annual charitable contributions and donations at least
81.2equal to the property's previous year's property taxes and the property is allowed to be
81.3used for public and community meetings or events for no charge, as appropriate to the
81.4size of the facility.
81.5 For purposes of this clause,
81.6 (A) "charitable contributions and donations" has the same meaning as lawful
81.7gambling purposes under section
349.12, subdivision 25, excluding those purposes
81.8relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;
81.9 (B) "property taxes" excludes the state general tax;
81.10 (C) a "nonprofit community service oriented organization" means any corporation,
81.11society, association, foundation, or institution organized and operated exclusively for
81.12charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
81.13federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
81.14Revenue Code; and
81.15 (D) "revenue-producing activities" shall include but not be limited to property or that
81.16portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
81.17liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
81.18alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
81.19insurance business, or office or other space leased or rented to a lessee who conducts a
81.20for-profit enterprise on the premises.
81.21Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use
81.22of the property for social events open exclusively to members and their guests for periods
81.23of less than 24 hours, when an admission is not charged nor any revenues are received by
81.24the organization shall not be considered a revenue-producing activity.
81.25 The organization shall maintain records of its charitable contributions and donations
81.26and of public meetings and events held on the property and make them available upon
81.27request any time to the assessor to ensure eligibility. An organization meeting the
81.28requirement under item (ii) must file an application by May 1 with the assessor for
81.29eligibility for the current year's assessment. The commissioner shall prescribe a uniform
81.30application form and instructions;
81.31 (4) postsecondary student housing of not more than one acre of land that is owned by
81.32a nonprofit corporation organized under chapter 317A and is used exclusively by a student
81.33cooperative, sorority, or fraternity for on-campus housing or housing located within two
81.34miles of the border of a college campus;
81.35 (5) (i) manufactured home parks as defined in section
327.14, subdivision 3,
81.36excluding manufactured home parks described in section
273.124, subdivision 3a, and (ii)
82.1manufactured home parks as defined in section
327.14, subdivision 3, that are described in
82.2section
273.124, subdivision 3a;
82.3 (6) real property that is actively and exclusively devoted to indoor fitness, health,
82.4social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
82.5and is located within the metropolitan area as defined in section
473.121, subdivision 2;
82.6 (7) a leased or privately owned noncommercial aircraft storage hangar not exempt
82.7under section
272.01, subdivision 2, and the land on which it is located, provided that:
82.8 (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
82.9Airports Commission, or group thereof; and
82.10 (ii) the land lease, or any ordinance or signed agreement restricting the use of the
82.11leased premise, prohibits commercial activity performed at the hangar.
82.12 If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
82.13be filed by the new owner with the assessor of the county where the property is located
82.14within 60 days of the sale;
82.15 (8) a privately owned noncommercial aircraft storage hangar not exempt under
82.16section
272.01, subdivision 2, and the land on which it is located, provided that:
82.17 (i) the land abuts a public airport; and
82.18 (ii) the owner of the aircraft storage hangar provides the assessor with a signed
82.19agreement restricting the use of the premises, prohibiting commercial use or activity
82.20performed at the hangar; and
82.21 (9) residential real estate, a portion of which is used by the owner for homestead
82.22purposes, and that is also a place of lodging, if all of the following criteria are met:
82.23 (i) rooms are provided for rent to transient guests that generally stay for periods
82.24of 14 or fewer days;
82.25 (ii) meals are provided to persons who rent rooms, the cost of which is incorporated
82.26in the basic room rate;
82.27 (iii) meals are not provided to the general public except for special events on fewer
82.28than seven days in the calendar year preceding the year of the assessment; and
82.29 (iv) the owner is the operator of the property.
82.30The market value subject to the 4c classification under this clause is limited to five rental
82.31units. Any rental units on the property in excess of five, must be valued and assessed as
82.32class 3a. The portion of the property used for purposes of a homestead by the owner must
82.33be classified as class 1a property under subdivision 22;
82.34 (10) real property up to a maximum of three acres and operated as a restaurant
82.35as defined under section
157.15, subdivision 12, provided it: (A) is located on a lake
82.36as defined under section
103G.005, subdivision 15, paragraph (a), clause (3); and (B)
83.1is either devoted to commercial purposes for not more than 250 consecutive days, or
83.2receives at least 60 percent of its annual gross receipts from business conducted during
83.3four consecutive months. Gross receipts from the sale of alcoholic beverages must be
83.4included in determining the property's qualification under subitem (B). The property's
83.5primary business must be as a restaurant and not as a bar. Gross receipts from gift shop
83.6sales located on the premises must be excluded. Owners of real property desiring 4c
83.7classification under this clause must submit an annual declaration to the assessor by
83.8February 1 of the current assessment year, based on the property's relevant information for
83.9the preceding assessment year; and
83.10(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used
83.11as a marina, as defined in section
86A.20, subdivision 5, which is made accessible to
83.12the public and devoted to recreational use for marina services. The marina owner must
83.13annually provide evidence to the assessor that it provides services, including lake or river
83.14access to the public by means of an access ramp or other facility that is either located on
83.15the property of the marina or at a publicly owned site that abuts the property of the marina.
83.16No more than 800 feet of lakeshore may be included in this classification. Buildings used
83.17in conjunction with a marina for marina services, including but not limited to buildings
83.18used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing
83.19tackle, are classified as class 3a property
new text begin ; andnew text end
83.20
new text begin (12) real and personal property devoted to noncommercial temporary and seasonal new text end
83.21
new text begin residential occupancy for recreation purposesnew text end .
83.22 Class 4c property has a class rate of 1.5 percent of market value, except that (i)
83.23each parcel of
new text begin noncommercial new text end seasonal residential recreational property not used for
83.24commercial purposes
new text begin under clause (12) new text end has the same class rates as class 4bb property, (ii)
83.25manufactured home parks assessed under clause (5), item (i), have the same class rate
83.26as class 4b property, and the market value of manufactured home parks assessed under
83.27clause (5), item (ii), has the same class rate as class 4d property if more than 50 percent
83.28of the lots in the park are occupied by shareholders in the cooperative corporation or
83.29association and a class rate of one percent if 50 percent or less of the lots are so occupied,
83.30(iii) commercial-use seasonal residential recreational property and marina recreational
83.31land as described in clause (11), has a class rate of one percent for the first $500,000 of
83.32market value, and 1.25 percent for the remaining market value, (iv) the market value of
83.33property described in clause (4) has a class rate of one percent, (v) the market value of
83.34property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi)
83.35that portion of the market value of property in clause (9) qualifying for class 4c property
83.36has a class rate of 1.25 percent.
84.1 (e) Class 4d property is qualifying low-income rental housing certified to the assessor
84.2by the Housing Finance Agency under section
273.128, subdivision 3. If only a portion
84.3of the units in the building qualify as low-income rental housing units as certified under
84.4section
273.128, subdivision 3, only the proportion of qualifying units to the total number
84.5of units in the building qualify for class 4d. The remaining portion of the building shall be
84.6classified by the assessor based upon its use. Class 4d also includes the same proportion of
84.7land as the qualifying low-income rental housing units are to the total units in the building.
84.8For all properties qualifying as class 4d, the market value determined by the assessor must
84.9be based on the normal approach to value using normal unrestricted rents.
84.10 Class 4d property has a class rate of 0.75 percent.
84.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2012 and new text end
84.12
new text begin thereafter.new text end
84.13 Sec. 7. Minnesota Statutes 2010, section 273.13, subdivision 34, is amended to read:
84.14 Subd. 34.
Homestead of disabled veterannew text begin or family caregivernew text end . (a) All or a portion
84.15of the market value of property owned by a veteran or by the veteran and the
new text begin and serving new text end
84.16
new text begin as the new text end veteran's spouse qualifying for homestead classification under subdivision 22 or
84.1723
new text begin under this sectionnew text end is excluded in determining the property's taxable market value if
84.18it serves as the homestead of a military veteran, as defined in section
, who has
84.19a service-connected disability of 70 percent or more
new text begin as certified by the United States new text end
84.20
new text begin Department of Veterans Affairsnew text end . To qualify for exclusion under this subdivision, the
84.21veteran must have been honorably discharged from the United States armed forces, as
84.22indicated by United States Government Form DD214 or other official military discharge
84.23papers, and must be certified by the United States Veterans Administration as having a
84.24service-connected disability.
84.25 (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
84.26excluded, except as provided in clause (2); and
84.27 (2) for a total (100 percent) and permanent disability, $300,000 of market value is
84.28excluded.
84.29 (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
84.30clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
84.31spouse holds the legal or beneficial title to the homestead and permanently resides there,
84.32the exclusion shall carry over to the benefit of the veteran's spouse for one additional
84.33assessment year
new text begin the current taxes payable year and for five additional taxes payable yearsnew text end
84.34or until such time as the spouse
new text begin remarries, ornew text end sells, transfers, or otherwise disposes of the
85.1property, whichever comes first.
new text begin Qualification under this paragraph requires an annual new text end
85.2
new text begin application under paragraph (h).new text end
85.3
new text begin (d) If the spouse of a member of any branch or unit of the United States armed new text end
85.4
new text begin forces who dies due to a service-connected cause while serving honorably in active new text end
85.5
new text begin service, as indicated on United States Government Form DD1300 or DD2064, holds new text end
85.6
new text begin the legal or beneficial title to a homestead and permanently resides there, the spouse is new text end
85.7
new text begin entitled to the benefit described in paragraph (b), clause (2), for five taxes payable years, new text end
85.8
new text begin or until such time as the spouse remarries or sells, transfers, or otherwise disposes of the new text end
85.9
new text begin property, whichever comes first.new text end
85.10
new text begin (e) If a veteran meets the disability criteria of paragraph (a) but does not own new text end
85.11
new text begin property classified as homestead in the state of Minnesota, then the homestead of the new text end
85.12
new text begin veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran new text end
85.13
new text begin would otherwise qualify for under paragraph (b).new text end
85.14 (d)
new text begin (f)new text end In the case of an agricultural homestead, only the portion of the property
85.15consisting of the house and garage and immediately surrounding one acre of land qualifies
85.16for the valuation exclusion under this subdivision.
85.17 (e)
new text begin (g)new text end A property qualifying for a valuation exclusion under this subdivision is not
85.18eligible for the credit under section
273.1384, subdivision 1new text begin market value exclusion under new text end
85.19
new text begin subdivision 35new text end , or classification under subdivision 22, paragraph (b).
85.20 (f)
new text begin (h)new text end To qualify for a valuation exclusion under this subdivision a property owner
85.21must apply to the assessor by July 1 of each assessment year, except that an annual
85.22reapplication is not required once a property has been accepted for a valuation exclusion
85.23under
new text begin paragraph (a) and qualifies for the benefit described in new text end paragraph (b), clause (2), and
85.24the property continues to qualify until there is a change in ownership.
new text begin For an application new text end
85.25
new text begin received after July 1 of any calendar year, the exclusion shall become effective for the new text end
85.26
new text begin following assessment year.new text end
85.27
new text begin (i) A first-time application by a qualifying spouse for the market value exclusion new text end
85.28
new text begin under paragraph (d) may be made any time within two years of the death of the service new text end
85.29
new text begin member.new text end
85.30
new text begin (j) For purposes of this subdivision:new text end
85.31
new text begin (1) "active service" has the meaning given in section 190.05;new text end
85.32
new text begin (2) "own" means that the person's name is present as an owner on the property deed;new text end
85.33
new text begin (3) "primary family caregiver" means a person who is approved by the secretary of new text end
85.34
new text begin the United States Department of Veterans Affairs for assistance as the primary provider new text end
85.35
new text begin of personal care services for an eligible veteran under the Program of Comprehensive new text end
86.1
new text begin Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G; new text end
86.2
new text begin andnew text end
86.3
new text begin (4) "veteran" has the meaning given the term in section 197.447.new text end
86.4
new text begin (k) The purpose of this provision of law providing a level of homestead property tax new text end
86.5
new text begin relief for gravely disabled veterans, their primary family caregivers, and their surviving new text end
86.6
new text begin spouses is to help ease the burdens of war for those among our state's citizens who bear new text end
86.7
new text begin those burdens most heavily.new text end
86.8
new text begin EFFECTIVE DATE.new text end new text begin (a) This section is effective for taxes payable in 2012 and new text end
86.9
new text begin thereafter, and applies to homesteads that initially qualified for the exclusion for taxes new text end
86.10
new text begin payable in 2009 and thereafter.new text end
86.11
new text begin (b) A qualifier under paragraph (c) that would have been eligible for a market value new text end
86.12
new text begin exclusion under this section for taxes payable in 2011, if the change under this section had new text end
86.13
new text begin been effective for that year, shall be eligible to receive the benefit of the exclusion for the new text end
86.14
new text begin remaining number of total taxes payable years provided under paragraph (c).new text end
86.15 Sec. 8. Minnesota Statutes 2010, section 274.01, subdivision 1, is amended to read:
86.16 Subdivision 1.
Ordinary board; meetings, deadlines, grievances. (a) The town
86.17board of a town, or the council or other governing body of a city, is the board of appeal
86.18and equalization except (1) in cities whose charters provide for a board of equalization or
86.19(2) in any city or town that has transferred its local board of review power and duties to
86.20the county board as provided in subdivision 3. The county assessor shall fix a day and
86.21time when the board or the board of equalization shall meet in the assessment districts
86.22of the county. Notwithstanding any law or city charter to the contrary, a city board of
86.23equalization shall be referred to as a board of appeal and equalization. On or before
86.24February 15 of each year the assessor shall give written notice of the time to the city or
86.25town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings
86.26must be held between April 1 and May 31 each year
new text begin , provided that the board may review new text end
86.27
new text begin appeals of denials of green acres treatment as provided in paragraph (h) at any timenew text end .
86.28The clerk shall give published and posted notice of the meeting at least ten days before
86.29the date of the meeting.
86.30 The board shall meet at the office of the clerk to review the assessment and
86.31classification of property in the town or city. No changes in valuation or classification
86.32which are intended to correct errors in judgment by the county assessor may be made by
86.33the county assessor after the board has adjourned in those cities or towns that hold a
86.34local board of review; however, corrections of errors that are merely clerical in nature or
86.35changes that extend homestead treatment to property are permitted after adjournment until
87.1the tax extension date for that assessment year. The changes must be fully documented and
87.2maintained in the assessor's office and must be available for review by any person. A copy
87.3of the changes made during this period in those cities or towns that hold a local board of
87.4review must be sent to the county board no later than December 31 of the assessment year.
87.5 (b) The board shall determine whether the taxable property in the town or city has
87.6been properly placed on the list and properly valued by the assessor. If real or personal
87.7property has been omitted, the board shall place it on the list with its market value, and
87.8correct the assessment so that each tract or lot of real property, and each article, parcel,
87.9or class of personal property, is entered on the assessment list at its market value. No
87.10assessment of the property of any person may be raised unless the person has been
87.11duly notified of the intent of the board to do so. On application of any person feeling
87.12aggrieved, the board shall review the assessment or classification, or both, and correct
87.13it as appears just. The board may not make an individual market value adjustment or
87.14classification change that would benefit the property if the owner or other person having
87.15control over the property has refused the assessor access to inspect the property and the
87.16interior of any buildings or structures as provided in section
273.20. A board member
87.17shall not participate in any actions of the board which result in market value adjustments
87.18or classification changes to property owned by the board member, the spouse, parent,
87.19stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew,
87.20or niece of a board member, or property in which a board member has a financial interest.
87.21The relationship may be by blood or marriage.
87.22 (c) A local board may reduce assessments upon petition of the taxpayer but the total
87.23reductions must not reduce the aggregate assessment made by the county assessor by more
87.24than one percent. If the total reductions would lower the aggregate assessments made by
87.25the county assessor by more than one percent, none of the adjustments may be made. The
87.26assessor shall correct any clerical errors or double assessments discovered by the board
87.27without regard to the one percent limitation.
87.28 (d) A local board does not have authority to grant an exemption or to order property
87.29removed from the tax rolls.
87.30 (e) A majority of the members may act at the meeting, and adjourn from day to day
87.31until they finish hearing the cases presented. The assessor shall attend, with the assessment
87.32books and papers, and take part in the proceedings, but must not vote. The county assessor,
87.33or an assistant delegated by the county assessor shall attend the meetings. The board shall
87.34list separately, on a form appended to the assessment book, all omitted property added
87.35to the list by the board and all items of property increased or decreased, with the market
88.1value of each item of property, added or changed by the board, placed opposite the item.
88.2The county assessor shall enter all changes made by the board in the assessment book.
88.3 (f) Except as provided in subdivision 3, if a person fails to appear in person, by
88.4counsel, or by written communication before the board after being duly notified of the
88.5board's intent to raise the assessment of the property, or if a person feeling aggrieved by an
88.6assessment or classification fails to apply for a review of the assessment or classification,
88.7the person may not appear before the county board of appeal and equalization for a review
88.8of the assessment or classification. This paragraph does not apply if an assessment was
88.9made after the local board meeting, as provided in section
273.01, or if the person can
88.10establish not having received notice of market value at least five days before the local
88.11board meeting.
88.12 (g) The local board must complete its work and adjourn within 20 days from the
88.13time of convening stated in the notice of the clerk, unless a longer period is approved by
88.14the commissioner of revenue. No action taken after that date is valid. All complaints
88.15about an assessment or classification made after the meeting of the board must be heard
88.16and determined by the county board of equalization. A nonresident may, at any time,
88.17before the meeting of the board file written objections to an assessment or classification
88.18with the county assessor. The objections must be presented to the board at its meeting by
88.19the county assessor for its consideration.
88.20
new text begin (h) The local board may, but is not required to, review appeals from property owners new text end
88.21
new text begin of denials by assessors of applications for valuation under section 273.111. If it intends new text end
88.22
new text begin to exercise the authority provided in this paragraph, the board must pass a resolution new text end
88.23
new text begin stating that it will do so, and must then review all such appeals until it passes a subsequent new text end
88.24
new text begin resolution stating that it will not review such appeals.new text end
88.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for appeals denied after June 30, new text end
88.26
new text begin 2011.new text end
88.27 Sec. 9. Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read:
88.28 Subdivision 1.
Levy amount. The state general levy is levied against
88.29commercial-industrial property and seasonal residential recreational property, as defined
88.30in this section. The state general levy base amount
new text begin for commercial-industrial property new text end
88.31is $592,000,000
new text begin $739,000,000new text end for taxes payable in 2002
new text begin 2012. The state general new text end
88.32
new text begin levy base amount for seasonal recreational property is $40,600,000 for taxes payable new text end
88.33
new text begin in 2012new text end . For taxes payable in subsequent years
new text begin 2013new text end , the
new text begin eachnew text end levy base amount
88.34is increased each year by multiplying the levy base amount for the prior year
new text begin taxes new text end
88.35
new text begin payable in 2012new text end by the sum of one plus the rate of increase, if any, in the implicit
89.1price deflator for government consumption expenditures and gross investment for
89.2state and local governments prepared by the Bureau of Economic Analysts of the
89.3United States Department of Commerce for the 12-month period ending March 31
89.4of the year prior to the year the taxes are payable
new text begin , 2012.new text end new text begin For taxes payable in 2014 new text end
89.5
new text begin and 2015, the state general levy is $743,000,000 for commercial-industrial property new text end
89.6
new text begin and $40,500,000 for seasonal residential recreational property. For taxes payable in new text end
89.7
new text begin 2016, the state general levy is $668,700,000 for commercial-industrial property and new text end
89.8
new text begin $36,450,000 for seasonal residential recreational property. For taxes payable in 2017, the new text end
89.9
new text begin state general levy is $594,400,000 for commercial-industrial property and $32,400,000 new text end
89.10
new text begin for seasonal residential recreational property. For taxes payable in 2018, the state new text end
89.11
new text begin general levy is $520,100,000 for commercial-industrial property and $28,350,000 new text end
89.12
new text begin for seasonal residential recreational property. For taxes payable in 2019, the state new text end
89.13
new text begin general levy is $445,800,000 for commercial-industrial property and $24,300,000 new text end
89.14
new text begin for seasonal residential recreational property. For taxes payable in 2020, the state new text end
89.15
new text begin general levy is $371,500,000 for commercial-industrial property and $20,250,000 new text end
89.16
new text begin for seasonal residential recreational property. For taxes payable in 2021, the state new text end
89.17
new text begin general levy is $297,200,000 for commercial-industrial property and $16,200,000 for new text end
89.18
new text begin seasonal residential recreational property. For taxes payable in 2022, the state general new text end
89.19
new text begin levy is $222,900,000 for commercial-industrial property and $12,150,000 for seasonal new text end
89.20
new text begin residential recreational property. For taxes payable in 2023, the state general levy is new text end
89.21
new text begin $148,600,000 for commercial-industrial property and $8,100,000 for seasonal residential new text end
89.22
new text begin recreational property. For taxes payable in 2024, the state general levy is $74,300,000 new text end
89.23
new text begin for commercial-industrial property and $4,050,000 for seasonal residential recreational new text end
89.24
new text begin propertynew text end . The tax under this section is not treated as a local tax rate under section
469.177
89.25and is not the levy of a governmental unit under chapters 276A and 473F.
89.26The commissioner shall increase or decrease the preliminary or final rate for a year
89.27as necessary to account for errors and tax base changes that affected a preliminary or final
89.28rate for either of the two preceding years. Adjustments are allowed to the extent that the
89.29necessary information is available to the commissioner at the time the rates for a year must
89.30be certified, and for the following reasons:
89.31(1) an erroneous report of taxable value by a local official;
89.32(2) an erroneous calculation by the commissioner; and
89.33(3) an increase or decrease in taxable value for commercial-industrial or seasonal
89.34residential recreational property reported on the abstracts of tax lists submitted under
89.35section
275.29 that was not reported on the abstracts of assessment submitted under
89.36section
270C.89 for the same year.
90.1The commissioner may, but need not, make adjustments if the total difference in the tax
90.2levied for the year would be less than $100,000.
90.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2012 and new text end
90.4
new text begin thereafter.new text end
90.5 Sec. 10. Minnesota Statutes 2010, section 275.025, subdivision 3, is amended to read:
90.6 Subd. 3.
Seasonal residential recreational tax capacity. For the purposes of this
90.7section, "seasonal residential recreational tax capacity" means the tax capacity of tier III
90.8of class 1c under section
273.13, subdivision 22, and all class 4c(1) and
new text begin ,new text end 4c(3)(ii)
new text begin , and new text end
90.9
new text begin 4c(12)new text end property under section
273.13, subdivision 25, except that the first $76,000 of
90.10market value of each noncommercial class 4c(1)
new text begin 4c(12)new text end property has a tax capacity for this
90.11purpose equal to 40 percent of its tax capacity under section
273.13.
90.12
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2012 and new text end
90.13
new text begin thereafter.new text end
90.14 Sec. 11. Minnesota Statutes 2010, section 275.025, subdivision 4, is amended to read:
90.15 Subd. 4.
Apportionment and levy of state general tax. Ninety-five percent of The
90.16state general tax must be levied by applying a uniform rate to all commercial-industrial tax
90.17capacity and five percent of the state general tax must be levied by applying a uniform
90.18rate to all seasonal residential recreational tax capacity. On or before October 1 each
90.19year, the commissioner of revenue shall certify the preliminary state general levy rates to
90.20each county auditor that must be used to prepare the notices of proposed property taxes
90.21for taxes payable in the following year. By January 1 of each year, the commissioner
90.22shall certify the final state general levy rate
new text begin ratesnew text end to each county auditor that shall be
90.23used in spreading taxes.
90.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2012 and new text end
90.25
new text begin thereafter.new text end
90.26 Sec. 12. Minnesota Statutes 2010, section 275.70, subdivision 5, is amended to read:
90.27 Subd. 5.
Special levies. "Special levies" means those portions of ad valorem taxes
90.28levied by a local governmental unit for the following purposes or in the following manner:
90.29 (1) to pay the costs of the principal and interest on bonded indebtedness or to
90.30reimburse for the amount of liquor store revenues used to pay the principal and interest
90.31due on municipal liquor store bonds in the year preceding the year for which the levy
90.32limit is calculated;
91.1 (2) to pay the costs of principal and interest on certificates of indebtedness issued for
91.2any corporate purpose except for the following:
91.3 (i) tax anticipation or aid anticipation certificates of indebtedness;
91.4 (ii) certificates of indebtedness issued under sections
298.28 and
298.282;
91.5 (iii) certificates of indebtedness used to fund current expenses or to pay the costs of
91.6extraordinary expenditures that result from a public emergency; or
91.7 (iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an
91.8insufficiency in other revenue sources, provided that nothing in this subdivision limits the
91.9special levy authorized under section
475.755;
91.10 (3) to provide for the bonded indebtedness portion of payments made to another
91.11political subdivision of the state of Minnesota;
91.12 (4) to fund payments made to the Minnesota State Armory Building Commission
91.13under section
193.145, subdivision 2, to retire the principal and interest on armory
91.14construction bonds;
91.15 (5) property taxes approved by voters which are levied against the referendum
91.16market value as provided under section
275.61;
91.17 (6) to fund matching requirements needed to qualify for federal or state grants or
91.18programs to the extent that either (i) the matching requirement exceeds the matching
91.19requirement in calendar year 2001, or (ii) it is a new matching requirement that did not
91.20exist prior to 2002;
91.21 (7) to pay the expenses reasonably and necessarily incurred in preparing for or
91.22repairing the effects of natural disaster including the occurrence or threat of widespread
91.23or severe damage, injury, or loss of life or property resulting from natural causes, in
91.24accordance with standards formulated by the Emergency Services Division of the state
91.25Department of Public Safety, as allowed by the commissioner of revenue under section
91.26275.74, subdivision 2
;
91.27 (8) pay amounts required to correct an error in the levy certified to the county
91.28auditor by a city or county in a levy year, but only to the extent that when added to the
91.29preceding year's levy it is not in excess of an applicable statutory, special law or charter
91.30limitation, or the limitation imposed on the governmental subdivision by sections
275.70
91.31to
275.74 in the preceding levy year;
91.32 (9) to pay an abatement under section
469.1815;
91.33 (10) to pay any costs attributable to increases in the employer contribution rates
91.34under chapter 353, or locally administered pension plans, that are effective after June
91.3530, 2001;
92.1 (11) to pay the operating or maintenance costs of a county jail as authorized in
92.2section
641.01 or
641.262, or of a correctional facility as defined in section
241.021,
92.3subdivision 1
, paragraph (f), to the extent that the county can demonstrate to the
92.4commissioner of revenue that the amount has been included in the county budget as
92.5a direct result of a rule, minimum requirement, minimum standard, or directive of the
92.6Department of Corrections, or to pay the operating or maintenance costs of a regional jail
92.7as authorized in section
641.262. For purposes of this clause, a district court order is
92.8not a rule, minimum requirement, minimum standard, or directive of the Department of
92.9Corrections. If the county utilizes this special levy, except to pay operating or maintenance
92.10costs of a new regional jail facility under sections
641.262 to
641.264 which will not
92.11replace an existing jail facility, any amount levied by the county in the previous levy year
92.12for the purposes specified under this clause and included in the county's previous year's
92.13levy limitation computed under section
275.71, shall be deducted from the levy limit
92.14base under section
275.71, subdivision 2, when determining the county's current year
92.15levy limitation. The county shall provide the necessary information to the commissioner
92.16of revenue for making this determination;
92.17 (12) to pay for operation of a lake improvement district, as authorized under section
92.18103B.555
. If the county utilizes this special levy, any amount levied by the county in the
92.19previous levy year for the purposes specified under this clause and included in the county's
92.20previous year's levy limitation computed under section
275.71 shall be deducted from
92.21the levy limit base under section
275.71, subdivision 2, when determining the county's
92.22current year levy limitation. The county shall provide the necessary information to the
92.23commissioner of revenue for making this determination;
92.24 (13) to repay a state or federal loan used to fund the direct or indirect required
92.25spending by the local government due to a state or federal transportation project or other
92.26state or federal capital project. This authority may only be used if the project is not a
92.27local government initiative;
92.28 (14) to pay for court administration costs as required under section
273.1398,
92.29subdivision 4b
, less the (i) county's share of transferred fines and fees collected by the
92.30district courts in the county for calendar year 2001 and (ii) the aid amount certified to be
92.31paid to the county in 2004 under section
273.1398, subdivision 4c; however, for taxes
92.32levied to pay for these costs in the year in which the court financing is transferred to the
92.33state, the amount under this clause is limited to the amount of aid the county is certified to
92.34receive under section
273.1398, subdivision 4a;
92.35 (15) to fund a police or firefighters relief association as required under section
69.77
92.36to the extent that the required amount exceeds the amount levied for this purpose in 2001;
93.1 (16) for purposes of a storm sewer improvement district under section
444.20;
93.2 (17) to pay for the maintenance and support of a city or county society for the
93.3prevention of cruelty to animals under section
343.11, but not to exceed in any year
93.4$4,800 or the sum of $1 per capita based on the county's or city's population as of the most
93.5recent federal census, whichever is greater. If the city or county uses this special levy, any
93.6amount levied by the city or county in the previous levy year for the purposes specified
93.7in this clause and included in the city's or county's previous year's levy limit computed
93.8under section
275.71, must be deducted from the levy limit base under section
275.71,
93.9subdivision 2
, in determining the city's or county's current year levy limit;
93.10 (18) for counties, to pay for the increase in their share of health and human service
93.11costs caused by reductions in federal health and human services grants effective after
93.12September 30, 2007;
93.13 (19) for a city, for the costs reasonably and necessarily incurred for securing,
93.14maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by
93.15the commissioner of revenue under section
275.74, subdivision 2. A city must have either
93.16(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in
93.17the city or in a zip code area of the city that is at least 50 percent higher than the average
93.18foreclosure rate in the metropolitan area, as defined in section
473.121, subdivision 2,
93.19to use this special levy. For purposes of this paragraph, "foreclosure rate" means the
93.20number of foreclosures, as indicated by sheriff sales records, divided by the number of
93.21households in the city in 2007;
93.22 (20) for a city, for the unreimbursed costs of redeployed traffic-control agents and
93.23lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified
93.24to the Federal Highway Administration;
93.25 (21) to pay costs attributable to wages and benefits for sheriff, police, and fire
93.26personnel. If a local governmental unit did not use this special levy in the previous year its
93.27levy limit base under section
275.71 shall be reduced by the amount equal to the amount it
93.28levied for the purposes specified in this clause in the previous year;
93.29 (22) an amount equal to any reductions in the certified aids or credit reimbursements
93.30payable under sections
477A.011 to
477A.014, and section
273.1384, due to unallotment
93.31under section
16A.152 or reductions under another provision of law. The amount of the
93.32levy allowed under this clause for each year is limited to the amount unallotted or reduced
93.33from the aids and credit reimbursements certified for payment in the year following the
93.34calendar year in which the tax levy is certified unless the unallotment or reduction amount
93.35is not known by September 1 of the levy certification year, and the local government has
94.1not adjusted its levy under section
275.065, subdivision 6, or
275.07, subdivision 6, in
94.2which case that unallotment or reduction amount may be levied in the following year;
94.3(23) to pay for the difference between one-half of the costs of confining sex offenders
94.4undergoing the civil commitment process and any state payments for this purpose pursuant
94.5to section
253B.185, subdivision 5;
94.6(24) for a county to pay the costs of the first year of maintaining and operating a new
94.7facility or new expansion, either of which contains courts, corrections, dispatch, criminal
94.8investigation labs, or other public safety facilities and for which all or a portion of the
94.9funding for the site acquisition, building design, site preparation, construction, and related
94.10equipment was issued or authorized prior to the imposition of levy limits in 2008. The
94.11levy limit base shall then be increased by an amount equal to the new facility's first full
94.12year's operating costs as described in this clause; and
94.13(25) for the estimated amount of reduction to market value credit reimbursements
94.14under section
273.1384 for credits payable in the year in which the levy is payable.
new text begin , except new text end
94.15
new text begin for a reduction due to the repeal of section 273.1384, subdivision 1; andnew text end
94.16
new text begin (26) for the reduction in the county share of payments to the county under sections new text end
94.17
new text begin 97A.061 and 477A.11 to 477A.17 between payments certified in calendar year 2011 and new text end
94.18
new text begin the estimated amount of the county share in the year in which the levy is payable provided new text end
94.19
new text begin the reduction is at least one percent of the county's total payable 2011 certified levy.new text end
94.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes levied in 2011 and 2012.new text end
94.21 Sec. 13. Minnesota Statutes 2010, section 275.71, subdivision 2, is amended to read:
94.22 Subd. 2.
Levy limit base. (a) The levy limit base for a local governmental unit for
94.23taxes levied in 2008 is its levy aid base from the previous year, subject to any adjustments
94.24under section
275.72. For taxes levied in 2009 and 2010
new text begin through 2012new text end , the levy limit base
94.25for a local governmental unit is its adjusted levy limit base in the previous year, subject
94.26to any adjustments under section
275.72.
94.27
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes levied in 2011 and 2012.new text end
94.28 Sec. 14. Minnesota Statutes 2010, section 275.71, subdivision 4, is amended to read:
94.29 Subd. 4.
Adjusted levy limit base. new text begin (a) new text end For taxes levied in 2008 through 2010
new text begin 2012new text end ,
94.30the adjusted levy limit base is equal to the levy limit base computed under subdivision 2
94.31or section
275.72, multiplied by:
94.32 (1) one plus the percentage growth in the implicit price deflator, but the percentage
94.33shall not be less than zero or exceed 3.9 percent;
95.1 (2) one plus a percentage equal to 50 percent of the percentage increase in the number
95.2of households, if any, for the most recent 12-month period for which data is available; and
95.3 (3) one plus a percentage equal to 50 percent of the percentage increase in the
95.4taxable market value of the jurisdiction due to new construction of class 3 property, as
95.5defined in section
273.13, subdivision 4, except for state-assessed utility and railroad
95.6property, for the most recent year for which data is available.
95.7
new text begin (b) If a city decertifies a tax increment finance district in the year in which the levy is new text end
95.8
new text begin set, the base amount determined under paragraph (a) is increased by an amount equal to new text end
95.9
new text begin the city's current year tax rate multiplied by the retained captured value for the district for new text end
95.10
new text begin the year prior to the year in which the levy is set, as reported on the TIF supplement to new text end
95.11
new text begin the abstract of tax lists.new text end
95.12
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes levied in 2011 and 2012.new text end
95.13 Sec. 15. Minnesota Statutes 2010, section 275.71, subdivision 5, is amended to read:
95.14 Subd. 5.
Property tax levy limit. (a) For taxes levied in 2008 through 2010
new text begin 2012new text end ,
95.15the property tax levy limit for a local governmental unit is equal to its adjusted levy limit
95.16base determined under subdivision 4 plus any additional levy authorized under section
95.17275.73
, which is levied against net tax capacity, reduced by the sum of (i) the total amount
95.18of aids and reimbursements that the local governmental unit is certified to receive under
95.19sections
477A.011 to
477A.014, (ii) taconite aids under sections
298.28 and
298.282
95.20including any aid which was required to be placed in a special fund for expenditure in
95.21the next succeeding year, (iii) estimated payments to the local governmental unit under
95.22section
272.029, adjusted for any error in estimation in the preceding year, and (iv) aids
95.23under section
477A.16.
95.24(b) If an aid, payment, or other amount used in paragraph (a) to reduce a local
95.25government unit's levy limit is reduced by an unallotment under section
16A.152, the
95.26amount of the aid, payment, or other amount prior to the unallotment is used in the
95.27computations in paragraph (a). In order for a local government unit to levy outside of its
95.28limit to offset the reduction in revenues attributable to an unallotment, it must do so under,
95.29and to the extent authorized by, a special levy authorization.
95.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes levied in 2011 and 2012.new text end
95.31 Sec. 16.
new text begin [275.761] MAINTENANCE OF EFFORT REQUIREMENTS new text end
95.32
new text begin SUSPENDED.new text end
96.1
new text begin (a) Notwithstanding any law to the contrary and except as provided in paragraphs new text end
96.2
new text begin (b) and (c), all maintenance of effort requirements for counties, including but not limited new text end
96.3
new text begin to those under sections 116L.872, 134.34, 245.4835, 245.4932, 245.714, 256F.10, and new text end
96.4
new text begin 256F.13, are suspended.new text end
96.5
new text begin (b) This section does not permit a county to suspend compliance with maintenance new text end
96.6
new text begin of effort requirements to the extent that the suspension would:new text end
96.7
new text begin (1) require the state to expend additional money or incur additional costs; ornew text end
96.8
new text begin (2) cause a reduction in the receipt by the state or the county of federal funds.new text end
96.9
new text begin (c) The commissioner of management and budget may determine the maintenance new text end
96.10
new text begin of effort requirements that are not permitted, in whole or in part, to be suspended under new text end
96.11
new text begin paragraph (b). The commissioner shall publish these determinations on the department's new text end
96.12
new text begin Web site and no county may suspend compliance with a maintenance of effort requirement new text end
96.13
new text begin that the commissioner determines is not subject to suspension.new text end
96.14
new text begin (d) Notwithstanding any law to the contrary, all statutory and home rule charter cities new text end
96.15
new text begin are exempt from the maintenance of effort requirements under section 134.34.new text end
96.16
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for maintenance of effort new text end
96.17
new text begin requirements in calendar years 2012 and 2013.new text end
96.18 Sec. 17.
new text begin REPEALER.new text end
96.19
new text begin Minnesota Statutes 2010, section 275.025,new text end new text begin is repealed.new text end
96.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes levied in 2024, payable new text end
96.21
new text begin in 2025, and thereafter.new text end
96.22
ARTICLE 7
96.23
AIDS, CREDITS, PAYMENTS, AND REFUNDS
96.24 Section 1. Minnesota Statutes 2010, section 88.49, subdivision 5, is amended to read:
96.25 Subd. 5.
Cancellation. Upon the failure of the owner faithfully to fulfill and
96.26perform such contract or any provision thereof, or any requirement of sections
88.47 to
96.2788.53
, or any rule adopted by the commissioner thereunder, the commissioner may cancel
96.28the contract in the manner herein provided. The commissioner shall give to the owner, in
96.29the manner prescribed in section
88.48, subdivision 4, 60 days' notice of a hearing thereon
96.30at which the owner may appear and show cause, if any, why the contract should not be
96.31canceled. The commissioner shall thereupon determine whether the contract should be
96.32canceled and make an order to that effect. Notice of the commissioner's determination
96.33and the making of the order shall be given to the owner in the manner provided in section
97.188.48, subdivision 4
. On determining that the contract should be canceled and no appeal
97.2therefrom be taken, the commissioner shall send notice thereof to the auditor of the county
97.3and to the town clerk of the town affected and file with the recorder a certified copy of the
97.4order, who shall forthwith note the cancellation upon the record thereof, and thereupon the
97.5land therein described shall cease to be an auxiliary forest and, together with the timber
97.6thereon, become liable to all taxes and assessments that otherwise would have been levied
97.7against it had it never been an auxiliary forest from the time of the making of the contract,
97.8any provisions of the statutes of limitation to the contrary notwithstanding, less the amount
97.9of taxes paid under the provisions of section
88.51, subdivision 1, together with interest on
97.10such taxes and assessments at six percent per annum, but without penalties.
97.11 The commissioner may in like manner and with like effect cancel the contract upon
97.12written application of the owner.
97.13 The commissioner shall cancel any contract if the owner has made successful
97.14application under sections
to
, the Sustainable Forest Incentive Act, and
97.15has paid to the county treasurer the difference between the amount which would have been
97.16paid had the land under contract been subject to the Minnesota Tree Growth Tax Law and
97.17the Sustainable Forest Incentive Act from the date of the recording of the contract and
97.18the amount actually paid under section
88.51, subdivisions 1 and 2. This tax difference
97.19must be calculated based on the years the lands would have been taxed under the Tree
97.20Growth Tax Law and the Sustainable Forest Incentive Act. The sustainable forest tax
97.21difference is net of the incentive payment of section
. If the amount which would
97.22have been paid, had the land under contract been under the Minnesota Tree Growth Tax
97.23Law and the Sustainable Forest Incentive Act from the date of the filing of the contract,
97.24is less than the amount actually paid under the contract, the cancellation shall be made
97.25without further payment by the owner.
97.26 When the execution of any contract creating an auxiliary forest shall have been
97.27procured through fraud or deception practiced upon the county board or the commissioner
97.28or any other person or body representing the state, it may be canceled upon suit brought by
97.29the attorney general at the direction of the commissioner. This cancellation shall have the
97.30same effect as the cancellation of a contract by the commissioner.
97.31
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
97.32 Sec. 2. Minnesota Statutes 2010, section 88.49, subdivision 9a, is amended to read:
97.33 Subd. 9a.
Land trades with governmental units. Notwithstanding subdivisions
97.346 and 9, or section
88.491, subdivision 2, if an owner trades land under auxiliary forest
97.35contract for land owned by a governmental unit and the owner agrees to use the land
98.1received in trade from the governmental unit for the production of forest products, upon
98.2resolution of the county board, no taxes and assessments shall be levied against the land
98.3traded, except that any current or delinquent annual taxes or yield taxes due on that land
98.4while it was under the auxiliary forest provision must be paid prior to the land exchange.
98.5The land received from the governmental unit in the land trade automatically qualifies for
98.6inclusion in the Sustainable Forest Incentive Act.
98.7
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
98.8 Sec. 3. Minnesota Statutes 2010, section 97A.061, subdivision 1, is amended to read:
98.9 Subdivision 1.
Applicability; amount. (a) The commissioner shall annually make a
98.10payment to each county having public hunting areas and game refuges. Money to make
98.11the payments is annually appropriated for that purpose from the general fund. Except as
98.12provided in paragraph (b), this section does not apply to state trust fund land and other
98.13state land not purchased for game refuge or public hunting purposes. Except as provided
98.14in paragraph (b), the payment shall be the greatest of:
98.15(1) 35
new text begin 30.8new text end percent of the gross receipts from all special use permits and leases of
98.16land acquired for public hunting and game refuges;
98.17(2) 50
new text begin 44new text end cents per acre on land purchased actually used for public hunting or game
98.18refuges; or
98.19(3) three-fourths of one
new text begin .66 new text end percent of the appraised value of purchased land actually
98.20used for public hunting and game refuges.
98.21(b) The payment shall be 50 percent of the dollar amount adjusted for inflation as
98.22determined under section
477A.12, subdivision 1, paragraph (a), clause (1), multiplied
98.23by the number of acres of land in the county that are owned by another state agency for
98.24military purposes and designated as a game refuge under section
97A.085.
98.25(c) The payment must be reduced by the amount paid under subdivision 3 for
98.26croplands managed for wild geese.
98.27(d) The appraised value is the purchase price for five years after acquisition.
98.28The appraised value shall be determined by the county assessor every five years after
98.29acquisition.
98.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for aids payable in calendar year new text end
98.31
new text begin 2011 and thereafter.new text end
98.32 Sec. 4. Minnesota Statutes 2010, section 97A.061, subdivision 3, is amended to read:
99.1 Subd. 3.
Goose management croplands. (a) The commissioner shall make a
99.2payment on July 1 of each year to each county where the state owns more than 1,000 acres
99.3of crop land, for wild goose management purposes. The payment shall be equal to
new text begin 88 new text end
99.4
new text begin percent ofnew text end the taxes assessed on comparable, privately owned, adjacent land. Money to
99.5make the payments is annually appropriated for that purpose from the general fund. The
99.6county treasurer shall allocate and distribute the payment as provided in subdivision 2.
99.7(b) The land used for goose management under this subdivision is exempt from
99.8taxation as provided in sections
272.01 and
273.19.
99.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for aids payable in calendar year new text end
99.10
new text begin 2011 and thereafter.new text end
99.11 Sec. 5. Minnesota Statutes 2010, section 126C.01, subdivision 3, is amended to read:
99.12 Subd. 3.
Referendum market value. "Referendum market value" means the market
99.13value of all taxable property, excluding property classified as class 2, noncommercial
99.144c(1), or 4c(4) under section
273.13. The portion of class 2a property consisting of the
99.15house, garage, and surrounding one acre of land of an agricultural homestead is included
99.16in referendum market value.
new text begin For the purposes of this subdivision, in the case of class 1a, new text end
99.17
new text begin 1b, or 2a property, "market value" means the value prior to the exclusion under section new text end
99.18
new text begin 273.13, subdivision 35.new text end new text begin new text end Any class of property, or any portion of a class of property, that
99.19is included in the definition of referendum market value and that has a class rate of less
99.20than one percent under section
273.13 shall have a referendum market value equal to its
99.21net tax capacity
new text begin market value times its class rate,new text end multiplied by 100.
99.22
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2012 and new text end
99.23
new text begin thereafter.new text end
99.24 Sec. 6. Minnesota Statutes 2010, section 270A.03, subdivision 7, is amended to read:
99.25 Subd. 7.
Refund. "Refund" means an individual income tax refund or political
99.26contribution refund, pursuant to chapter 290, or a property tax credit or refund, pursuant to
99.27chapter 290A, or a sustainable forest tax payment to a claimant under chapter 290C.
99.28For purposes of this chapter, lottery prizes, as set forth in section
349A.08,
99.29subdivision 8
, and amounts granted to persons by the legislature on the recommendation
99.30of the joint senate-house of representatives Subcommittee on Claims shall be treated
99.31as refunds.
99.32In the case of a joint property tax refund payable to spouses under chapter 290A,
99.33the refund shall be considered as belonging to each spouse in the proportion of the total
100.1refund that equals each spouse's proportion of the total income determined under section
100.2290A.03, subdivision 3
. In the case of a joint income tax refund under chapter 289A, the
100.3refund shall be considered as belonging to each spouse in the proportion of the total
100.4refund that equals each spouse's proportion of the total taxable income determined under
100.5section
290.01, subdivision 29. The commissioner shall remit the entire refund to the
100.6claimant agency, which shall, upon the request of the spouse who does not owe the debt,
100.7determine the amount of the refund belonging to that spouse and refund the amount to
100.8that spouse. For court fines, fees, and surcharges and court-ordered restitution under
100.9section
611A.04, subdivision 2, the notice provided by the commissioner of revenue under
100.10section
270A.07, subdivision 2, paragraph (b), serves as the appropriate legal notice
100.11to the spouse who does not owe the debt.
100.12
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
100.13 Sec. 7. Minnesota Statutes 2010, section 273.114, subdivision 2, as amended by Laws
100.142011, chapter 13, section 2, is amended to read:
100.15 Subd. 2.
Requirements. Class 2b property that had been properly enrolled under
100.16section 273.111 for taxes payable in 2008, or that is part of an agricultural homestead
100.17under section 273.13, subdivision 23, paragraph (a), at least a portion of which is enrolled
100.18under section
273.111, is entitled to valuation and tax deferment under this section if:
100.19 (1) the property is contiguous to class 2a property enrolled under section
273.111
100.20under the same ownership;
100.21 (2) there are no delinquent property taxes on the land; and
100.22 (3) the property is not also enrolled for valuation and deferment under section
100.23273.111 or 273.112, or chapter 290C or 473H.
100.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
100.25 Sec. 8. Minnesota Statutes 2010, section 273.13, subdivision 23, is amended to read:
100.26 Subd. 23.
Class 2. (a) An agricultural homestead consists of class 2a agricultural
100.27land that is homesteaded, along with any class 2b rural vacant land that is contiguous to
100.28the class 2a land under the same ownership. The market value of the house and garage
100.29and immediately surrounding one acre of land has the same class rates as class 1a or 1b
100.30property under subdivision 22. The value of the remaining land including improvements
100.31up to the first tier valuation limit of agricultural homestead property has a net class rate
100.32of 0.5 percent of market value. The remaining property over the first tier has a class rate
100.33of one percent of market value. For purposes of this subdivision, the "first tier valuation
101.1limit of agricultural homestead property" and "first tier" means the limit certified under
101.2section
273.11, subdivision 23.
101.3 (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
101.4are agricultural land and buildings. Class 2a property has a net class rate of one percent of
101.5market value, unless it is part of an agricultural homestead under paragraph (a). Class
101.62a property must also include any property that would otherwise be classified as 2b,
101.7but is interspersed with class 2a property, including but not limited to sloughs, wooded
101.8wind shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback
101.9requirement, and other similar land that is impractical for the assessor to value separately
101.10from the rest of the property or that is unlikely to be able to be sold separately from
101.11the rest of the property.
101.12 An assessor may classify the part of a parcel described in this subdivision that is used
101.13for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
101.14 (c) Class 2b rural vacant land consists of parcels of property, or portions thereof,
101.15that are unplatted real estate, rural in character and not used for agricultural purposes,
101.16including land used for growing trees for timber, lumber, and wood and wood products,
101.17that is not improved with a structure. The presence of a minor, ancillary nonresidential
101.18structure as defined by the commissioner of revenue does not disqualify the property from
101.19classification under this paragraph. Any parcel of 20 acres or more improved with a
101.20structure that is not a minor, ancillary nonresidential structure must be split-classified, and
101.21ten acres must be assigned to the split parcel containing the structure. Class 2b property
101.22has a net class rate of one percent of market value unless it is part of an agricultural
101.23homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
101.24 (d) Class 2c managed forest land consists of no less than 20 and no more than
101.251,920 acres statewide per taxpayer that is being managed under a forest management
101.26plan that meets the requirements of chapter 290C, but is not enrolled in the sustainable
101.27forest resource management incentive program. It has a class rate of .65 percent,
101.28provided that the owner of the property must apply to the assessor in order for the
101.29property to initially qualify for the reduced rate and provide the information required
101.30by the assessor to verify that the property qualifies for the reduced rate. If the assessor
101.31receives the application and information before May 1 in an assessment year, the property
101.32qualifies beginning with that assessment year. If the assessor receives the application
101.33and information after April 30 in an assessment year, the property may not qualify until
101.34the next assessment year. The commissioner of natural resources must concur that the
101.35land is qualified. The commissioner of natural resources shall annually provide county
101.36assessors verification information on a timely basis. The presence of a minor, ancillary
102.1nonresidential structure as defined by the commissioner of revenue does not disqualify
102.2the property from classification under this paragraph.
new text begin For purposes of this paragraph, new text end
102.3
new text begin a "forest management plan" means a written document providing a framework for new text end
102.4
new text begin site-specific healthy, productive, and sustainable forest resources. A forest management new text end
102.5
new text begin plan must include at least the following: (i) forest management goals for the land; (ii) a new text end
102.6
new text begin reliable field inventory of the individual forest cover types, their age, and density; (iii) a new text end
102.7
new text begin description of the soil type and quality; (iv) an aerial photo and/or map of the vegetation new text end
102.8
new text begin and other natural features of the land clearly indicating the boundaries of the land and of new text end
102.9
new text begin the forest land; (v) the proposed future conditions of the land; (vi) prescriptions to meet new text end
102.10
new text begin proposed future conditions of the land; (vii) a recommended timetable for implementing new text end
102.11
new text begin the prescribed activities; and (viii) a legal description of the land encompassing the new text end
102.12
new text begin parcels included in the plan. All management activities prescribed in a plan must be in new text end
102.13
new text begin accordance with the recommended timber harvesting and forest management guidelines. new text end
102.14
new text begin The commissioner of natural resources shall provide a framework for plan content and new text end
102.15
new text begin updating and revising plans.new text end
102.16 (e) Agricultural land as used in this section means contiguous acreage of ten
102.17acres or more, used during the preceding year for agricultural purposes. "Agricultural
102.18purposes" as used in this section means the raising, cultivation, drying, or storage of
102.19agricultural products for sale, or the storage of machinery or equipment used in support
102.20of agricultural production by the same farm entity. For a property to be classified as
102.21agricultural based only on the drying or storage of agricultural products, the products
102.22being dried or stored must have been produced by the same farm entity as the entity
102.23operating the drying or storage facility. "Agricultural purposes" also includes enrollment
102.24in the Reinvest in Minnesota program under sections
103F.501 to
103F.535 or the federal
102.25Conservation Reserve Program as contained in Public Law 99-198 or a similar state
102.26or federal conservation program if the property was classified as agricultural (i) under
102.27this subdivision for the assessment year 2002 or (ii) in the year prior to its enrollment.
102.28Agricultural classification shall not be based upon the market value of any residential
102.29structures on the parcel or contiguous parcels under the same ownership.
102.30 (f) Real estate of less than ten acres, which is exclusively or intensively used for
102.31raising or cultivating agricultural products, shall be considered as agricultural land. To
102.32qualify under this paragraph, property that includes a residential structure must be used
102.33intensively for one of the following purposes:
102.34 (i) for drying or storage of grain or storage of machinery or equipment used to
102.35support agricultural activities on other parcels of property operated by the same farming
102.36entity;
103.1 (ii) as a nursery, provided that only those acres used to produce nursery stock are
103.2considered agricultural land;
103.3 (iii) for livestock or poultry confinement, provided that land that is used only for
103.4pasturing and grazing does not qualify; or
103.5 (iv) for market farming; for purposes of this paragraph, "market farming" means the
103.6cultivation of one or more fruits or vegetables or production of animal or other agricultural
103.7products for sale to local markets by the farmer or an organization with which the farmer
103.8is affiliated.
103.9 (g) Land shall be classified as agricultural even if all or a portion of the agricultural
103.10use of that property is the leasing to, or use by another person for agricultural purposes.
103.11 Classification under this subdivision is not determinative for qualifying under
103.12section
273.111.
103.13 (h) The property classification under this section supersedes, for property tax
103.14purposes only, any locally administered agricultural policies or land use restrictions that
103.15define minimum or maximum farm acreage.
103.16 (i) The term "agricultural products" as used in this subdivision includes production
103.17for sale of:
103.18 (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
103.19animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains,
103.20bees, and apiary products by the owner;
103.21 (2) fish bred for sale and consumption if the fish breeding occurs on land zoned
103.22for agricultural use;
103.23 (3) the commercial boarding of horses, which may include related horse training and
103.24riding instruction, if the boarding is done on property that is also used for raising pasture
103.25to graze horses or raising or cultivating other agricultural products as defined in clause (1);
103.26 (4) property which is owned and operated by nonprofit organizations used for
103.27equestrian activities, excluding racing;
103.28 (5) game birds and waterfowl bred and raised for use on a shooting preserve licensed
103.29under section
97A.115;
103.30 (6) insects primarily bred to be used as food for animals;
103.31 (7) trees, grown for sale as a crop, including short rotation woody crops, and not
103.32sold for timber, lumber, wood, or wood products; and
103.33 (8) maple syrup taken from trees grown by a person licensed by the Minnesota
103.34Department of Agriculture under chapter 28A as a food processor.
103.35 (j) If a parcel used for agricultural purposes is also used for commercial or industrial
103.36purposes, including but not limited to:
104.1 (1) wholesale and retail sales;
104.2 (2) processing of raw agricultural products or other goods;
104.3 (3) warehousing or storage of processed goods; and
104.4 (4) office facilities for the support of the activities enumerated in clauses (1), (2),
104.5and (3),
104.6the assessor shall classify the part of the parcel used for agricultural purposes as class
104.71b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its
104.8use. The grading, sorting, and packaging of raw agricultural products for first sale is
104.9considered an agricultural purpose. A greenhouse or other building where horticultural
104.10or nursery products are grown that is also used for the conduct of retail sales must be
104.11classified as agricultural if it is primarily used for the growing of horticultural or nursery
104.12products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of
104.13those products. Use of a greenhouse or building only for the display of already grown
104.14horticultural or nursery products does not qualify as an agricultural purpose.
104.15 (k) The assessor shall determine and list separately on the records the market value
104.16of the homestead dwelling and the one acre of land on which that dwelling is located. If
104.17any farm buildings or structures are located on this homesteaded acre of land, their market
104.18value shall not be included in this separate determination.
104.19 (l) Class 2d airport landing area consists of a landing area or public access area of
104.20a privately owned public use airport. It has a class rate of one percent of market value.
104.21To qualify for classification under this paragraph, a privately owned public use airport
104.22must be licensed as a public airport under section
360.018. For purposes of this paragraph,
104.23"landing area" means that part of a privately owned public use airport properly cleared,
104.24regularly maintained, and made available to the public for use by aircraft and includes
104.25runways, taxiways, aprons, and sites upon which are situated landing or navigational aids.
104.26A landing area also includes land underlying both the primary surface and the approach
104.27surfaces that comply with all of the following:
104.28 (i) the land is properly cleared and regularly maintained for the primary purposes of
104.29the landing, taking off, and taxiing of aircraft; but that portion of the land that contains
104.30facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
104.31 (ii) the land is part of the airport property; and
104.32 (iii) the land is not used for commercial or residential purposes.
104.33The land contained in a landing area under this paragraph must be described and certified
104.34by the commissioner of transportation. The certification is effective until it is modified,
104.35or until the airport or landing area no longer meets the requirements of this paragraph.
104.36For purposes of this paragraph, "public access area" means property used as an aircraft
105.1parking ramp, apron, or storage hangar, or an arrival and departure building in connection
105.2with the airport.
105.3 (m) Class 2e consists of land with a commercial aggregate deposit that is not actively
105.4being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
105.5located in a county that has elected to opt-out of the aggregate preservation program as
105.6provided in section
273.1115, subdivision 6. It has a class rate of one percent of market
105.7value. To qualify for classification under this paragraph, the property must be at least
105.8ten contiguous acres in size and the owner of the property must record with the county
105.9recorder of the county in which the property is located an affidavit containing:
105.10 (1) a legal description of the property;
105.11 (2) a disclosure that the property contains a commercial aggregate deposit that is not
105.12actively being mined but is present on the entire parcel enrolled;
105.13 (3) documentation that the conditional use under the county or local zoning
105.14ordinance of this property is for mining; and
105.15 (4) documentation that a permit has been issued by the local unit of government
105.16or the mining activity is allowed under local ordinance. The disclosure must include a
105.17statement from a registered professional geologist, engineer, or soil scientist delineating
105.18the deposit and certifying that it is a commercial aggregate deposit.
105.19 For purposes of this section and section
273.1115, "commercial aggregate deposit"
105.20means a deposit that will yield crushed stone or sand and gravel that is suitable for use
105.21as a construction aggregate; and "actively mined" means the removal of top soil and
105.22overburden in preparation for excavation or excavation of a commercial deposit.
105.23 (n) When any portion of the property under this subdivision or subdivision 22 begins
105.24to be actively mined, the owner must file a supplemental affidavit within 60 days from
105.25the day any aggregate is removed stating the number of acres of the property that is
105.26actively being mined. The acres actively being mined must be (1) valued and classified
105.27under subdivision 24 in the next subsequent assessment year, and (2) removed from the
105.28aggregate resource preservation property tax program under section
273.1115, if the
105.29land was enrolled in that program. Copies of the original affidavit and all supplemental
105.30affidavits must be filed with the county assessor, the local zoning administrator, and the
105.31Department of Natural Resources, Division of Land and Minerals. A supplemental
105.32affidavit must be filed each time a subsequent portion of the property is actively mined,
105.33provided that the minimum acreage change is five acres, even if the actual mining activity
105.34constitutes less than five acres.
106.1(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are
106.2not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions
106.3in section
14.386 concerning exempt rules do not apply.
106.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes levied in 2011, payable new text end
106.5
new text begin in 2012, and thereafter.new text end
106.6 Sec. 9. Minnesota Statutes 2010, section 273.13, is amended by adding a subdivision
106.7to read:
106.8
new text begin Subd. 35.new text end new text begin Homestead market value exclusion.new text end new text begin (a) Prior to determining a property's new text end
106.9
new text begin net tax capacity under this section, property classified as class 1a or 1b under subdivision new text end
106.10
new text begin 22, and the portion of property classified as class 2a under subdivision 23 consisting of new text end
106.11
new text begin the house, garage, and surrounding one acre of land, shall be eligible for a market value new text end
106.12
new text begin exclusion as determined under paragraph (b).new text end
106.13
new text begin (b) For a homestead valued at $76,000 or less, the exclusion is 40 percent of market new text end
106.14
new text begin value. For a homestead valued between $76,000 and $413,800, the exclusion is $30,400 new text end
106.15
new text begin minus nine percent of the valuation over $76,000. For a homestead valued at $413,800 or new text end
106.16
new text begin more, there is no valuation exclusion. The valuation exclusion shall be rounded to the new text end
106.17
new text begin nearest whole dollar, and may not be less than zero.new text end
106.18
new text begin (c) Any valuation exclusions or adjustments under section 273.11 shall be applied new text end
106.19
new text begin prior to determining the amount of the valuation exclusion under this subdivision. new text end
106.20
new text begin (d) In the case of a property that is classified as part homestead and part new text end
106.21
new text begin nonhomestead, (i) the exclusion shall apply only to the homestead portion of the property, new text end
106.22
new text begin but (ii) if a portion of a property is classified as nonhomestead solely because not all new text end
106.23
new text begin the owners occupy the property, not all the owners have qualifying relatives occupying new text end
106.24
new text begin the property, or solely because not all the spouses of owners occupy the property, the new text end
106.25
new text begin exclusion amount shall be initially computed as if that nonhomestead portion were also in new text end
106.26
new text begin the homestead class and then prorated to the owner-occupant's percentage of ownership. new text end
106.27
new text begin For the purpose of this section, when an owner-occupant's spouse does not occupy the new text end
106.28
new text begin property, the percentage of ownership for the owner-occupant spouse is one-half of the new text end
106.29
new text begin couple's ownership percentage.new text end
106.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2012 and new text end
106.31
new text begin thereafter.new text end
106.32 Sec. 10. Minnesota Statutes 2010, section 273.1384, subdivision 3, is amended to read:
107.1 Subd. 3.
Credit reimbursements. The county auditor shall determine the tax
107.2reductions allowed under this section
new text begin subdivision 2new text end within the county for each taxes
107.3payable year and shall certify that amount to the commissioner of revenue as a part of the
107.4abstracts of tax lists submitted by the county auditors under section
275.29. Any prior
107.5year adjustments shall also be certified on the abstracts of tax lists. The commissioner
107.6shall review the certifications for accuracy, and may make such changes as are deemed
107.7necessary, or return the certification to the county auditor for correction. The credits
new text begin new text end
107.8
new text begin creditnew text end under this section must be used to proportionately reduce the net tax capacity-based
107.9property tax payable to each local taxing jurisdiction as provided in section
273.1393.
107.10
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2012 and new text end
107.11
new text begin thereafter.new text end
107.12 Sec. 11. Minnesota Statutes 2010, section 273.1384, subdivision 4, is amended to read:
107.13 Subd. 4.
Payment. (a) The commissioner of revenue shall reimburse each local
107.14taxing jurisdiction, other than school districts, for the tax reductions granted under this
107.15section
new text begin subdivision 2new text end in two equal installments on October 31 and December 26 of the
107.16taxes payable year for which the reductions are granted, including in each payment
107.17the prior year adjustments certified on the abstracts for that taxes payable year. The
107.18reimbursements related to tax increments shall be issued in one installment each year on
107.19December 26.
107.20(b) The commissioner of revenue shall certify the total of the tax reductions granted
107.21under this section
new text begin subdivision 2new text end for each taxes payable year within each school district to
107.22the commissioner of the Department of Education and the commissioner of education shall
107.23pay the reimbursement amounts to each school district as provided in section
273.1392.
107.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2012 and new text end
107.25
new text begin thereafter.new text end
107.26 Sec. 12. Minnesota Statutes 2010, section 273.1393, is amended to read:
107.27
273.1393 COMPUTATION OF NET PROPERTY TAXES.
107.28 Notwithstanding any other provisions to the contrary, "net" property taxes are
107.29determined by subtracting the credits in the order listed from the gross tax:
107.30 (1) disaster credit as provided in sections
273.1231 to
273.1235;
107.31 (2) powerline credit as provided in section
273.42;
107.32 (3) agricultural preserves credit as provided in section
473H.10;
107.33 (4) enterprise zone credit as provided in section
469.171;
108.1 (5) disparity reduction credit;
108.2 (6) conservation tax credit as provided in section
273.119;
108.3 (7) homestead and agricultural credits
new text begin creditnew text end as provided in section
273.1384;
108.4 (8) taconite homestead credit as provided in section
273.135;
108.5 (9) supplemental homestead credit as provided in section
273.1391; and
108.6 (10) the bovine tuberculosis zone credit, as provided in section
273.113.
108.7 The combination of all property tax credits must not exceed the gross tax amount.
108.8
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2012 and new text end
108.9
new text begin thereafter.new text end
108.10 Sec. 13. Minnesota Statutes 2010, section 273.1398, subdivision 3, is amended to read:
108.11 Subd. 3.
Disparity reduction aid. The amount of disparity aid certified
new text begin in 2012 and new text end
108.12
new text begin subsequent years new text end for each taxing
new text begin schoolnew text end district within each unique taxing jurisdiction
108.13for taxes payable in the prior year shall be multiplied by the ratio of (1) the jurisdiction's
108.14tax capacity using the class rates for taxes payable in the year for which aid is being
108.15computed, to (2) its tax capacity using the class rates for taxes payable in the year prior to
108.16that for which aid is being computed, both based upon market values for taxes payable in
108.17the year prior to that for which aid is being computed. If the commissioner determines
108.18that insufficient information is available to reasonably and timely calculate the numerator
108.19in this ratio for the first taxes payable year that a class rate change or new class rate is
108.20effective, the commissioner shall omit the effects of that class rate change or new class
108.21rate when calculating this ratio for aid payable in that taxes payable year. For aid payable
108.22in the year following a year for which such omission was made, the commissioner shall
108.23use in the denominator for the class that was changed or created, the tax capacity for taxes
108.24payable two years prior to that in which the aid is payable, based on market values for
108.25taxes payable in the year prior to that for which aid is being computed
new text begin is equal to the new text end
108.26
new text begin amount certified for aid payable in 2011new text end .
108.27
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for aid payable in 2012 and thereafter.new text end
108.28 Sec. 14. Minnesota Statutes 2010, section 276.04, subdivision 2, is amended to read:
108.29 Subd. 2.
Contents of tax statements. (a) The treasurer shall provide for the
108.30printing of the tax statements. The commissioner of revenue shall prescribe the form of
108.31the property tax statement and its contents. The tax statement must not state or imply
108.32that property tax credits are paid by the state of Minnesota. The statement must contain
108.33a tabulated statement of the dollar amount due to each taxing authority and the amount
109.1of the state tax from the parcel of real property for which a particular tax statement is
109.2prepared. The dollar amounts attributable to the county, the state tax, the voter approved
109.3school tax, the other local school tax, the township or municipality, and the total of
109.4the metropolitan special taxing districts as defined in section
275.065, subdivision 3,
109.5paragraph (i), must be separately stated. The amounts due all other special taxing districts,
109.6if any, may be aggregated except that any levies made by the regional rail authorities in the
109.7county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
109.8398A shall be listed on a separate line directly under the appropriate county's levy. If the
109.9county levy under this paragraph includes an amount for a lake improvement district as
109.10defined under sections
103B.501 to
103B.581, the amount attributable for that purpose
109.11must be separately stated from the remaining county levy amount. In the case of Ramsey
109.12County, if the county levy under this paragraph includes an amount for public library
109.13service under section
134.07, the amount attributable for that purpose may be separated
109.14from the remaining county levy amount. The amount of the tax on homesteads qualifying
109.15under the senior citizens' property tax deferral program under chapter 290B is the total
109.16amount of property tax before subtraction of the deferred property tax amount. The
109.17amount of the tax on contamination value imposed under sections
270.91 to
270.98, if any,
109.18must also be separately stated. The dollar amounts, including the dollar amount of any
109.19special assessments, may be rounded to the nearest even whole dollar. For purposes of this
109.20section whole odd-numbered dollars may be adjusted to the next higher even-numbered
109.21dollar. The amount of market value excluded under section
273.11, subdivision 16, if any,
109.22must also be listed on the tax statement.
109.23 (b) The property tax statements for manufactured homes and sectional structures
109.24taxed as personal property shall contain the same information that is required on the
109.25tax statements for real property.
109.26 (c) Real and personal property tax statements must contain the following information
109.27in the order given in this paragraph. The information must contain the current year tax
109.28information in the right column with the corresponding information for the previous year
109.29in a column on the left:
109.30 (1) the property's estimated market value under section
273.11, subdivision 1;
109.31
new text begin (2) the property's homestead market value exclusion under section 273.13, new text end
109.32
new text begin subdivision 35;new text end
109.33 (2)
new text begin (3)new text end the property's taxable market value after reductions under section
new text begin sectionsnew text end
109.34273.11
, subdivisions 1a and 16
new text begin , and 273.13, subdivision 35new text end ;
109.35 (3)
new text begin (4)new text end the property's gross tax, before credits;
110.1 (4)
new text begin (5)new text end for homestead residential and agricultural properties, the credits
new text begin credit new text end under
110.2section
273.1384;
110.3 (5)
new text begin (6)new text end any credits received under sections
273.119;
273.1234 or
273.1235;
273.135;
110.4273.1391
;
273.1398, subdivision 4;
469.171; and
473H.10, except that the amount of
110.5credit received under section
273.135 must be separately stated and identified as "taconite
110.6tax relief"; and
110.7 (6)
new text begin (7)new text end the net tax payable in the manner required in paragraph (a).
110.8 (d) If the county uses envelopes for mailing property tax statements and if the county
110.9agrees, a taxing district may include a notice with the property tax statement notifying
110.10taxpayers when the taxing district will begin its budget deliberations for the current
110.11year, and encouraging taxpayers to attend the hearings. If the county allows notices to
110.12be included in the envelope containing the property tax statement, and if more than
110.13one taxing district relative to a given property decides to include a notice with the tax
110.14statement, the county treasurer or auditor must coordinate the process and may combine
110.15the information on a single announcement.
110.16
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2012 and new text end
110.17
new text begin thereafter.new text end
110.18 Sec. 15. Minnesota Statutes 2010, section 289A.50, subdivision 1, is amended to read:
110.19 Subdivision 1.
General right to refund. (a) Subject to the requirements of this
110.20section and section
289A.40, a taxpayer who has paid a tax in excess of the taxes lawfully
110.21due and who files a written claim for refund will be refunded or credited the overpayment
110.22of the tax determined by the commissioner to be erroneously paid.
110.23(b) The claim must specify the name of the taxpayer, the date when and the period
110.24for which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer
110.25claims was erroneously paid, the grounds on which a refund is claimed, and other
110.26information relative to the payment and in the form required by the commissioner. An
110.27income tax, estate tax, or corporate franchise tax return, or amended return claiming an
110.28overpayment constitutes a claim for refund.
110.29(c) When, in the course of an examination, and within the time for requesting a
110.30refund, the commissioner determines that there has been an overpayment of tax, the
110.31commissioner shall refund or credit the overpayment to the taxpayer and no demand
110.32is necessary. If the overpayment exceeds $1, the amount of the overpayment must
110.33be refunded to the taxpayer. If the amount of the overpayment is less than $1, the
110.34commissioner is not required to refund. In these situations, the commissioner does not
110.35have to make written findings or serve notice by mail to the taxpayer.
111.1(d) If the amount allowable as a credit for withholding, estimated taxes, or dependent
111.2care exceeds the tax against which the credit is allowable, the amount of the excess is
111.3considered an overpayment. The refund allowed by section
290.06, subdivision 23, is also
111.4considered an overpayment. The requirements of section
270C.33 do not apply to the
111.5refunding of such an overpayment shown on the original return filed by a taxpayer.
111.6(e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes,
111.7penalties, and interest reported in the return of the entertainment entity or imposed by
111.8section
290.9201, the excess must be refunded to the entertainment entity. If the excess is
111.9less than $1, the commissioner need not refund that amount.
111.10(f) If the surety deposit required for a construction contract exceeds the liability of
111.11the out-of-state contractor, the commissioner shall refund the difference to the contractor.
111.12(g) An action of the commissioner in refunding the amount of the overpayment does
111.13not constitute a determination of the correctness of the return of the taxpayer.
111.14(h) There is appropriated from the general fund to the commissioner of revenue the
111.15amount necessary to pay refunds allowed under this section.
111.16
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for refund claims based on new text end
111.17
new text begin contributions made after June 30, 2011.new text end
111.18 Sec. 16. Minnesota Statutes 2010, section 290.01, subdivision 6, is amended to read:
111.19 Subd. 6.
Taxpayer. The term "taxpayer" means any person or corporation subject to
111.20a tax imposed by this chapter. For purposes of section
290.06, subdivision 23, the term
111.21"taxpayer" means an individual eligible to vote in Minnesota under section
.
111.22
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for refund claims based on new text end
111.23
new text begin contributions made after June 30, 2011.new text end
111.24 Sec. 17. Minnesota Statutes 2010, section 290A.03, subdivision 11, is amended to read:
111.25 Subd. 11.
Rent constituting property taxes. "Rent constituting property taxes"
111.26means 19
new text begin 15new text end percent of the gross rent actually paid in cash, or its equivalent, or the portion
111.27of rent paid in lieu of property taxes, in any calendar year by a claimant for the right
111.28of occupancy of the claimant's Minnesota homestead in the calendar year, and which
111.29rent constitutes the basis, in the succeeding calendar year of a claim for relief under this
111.30chapter by the claimant.
111.31
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for claims based on rent paid in new text end
111.32
new text begin 2010 and thereafter.new text end
112.1 Sec. 18. Minnesota Statutes 2010, section 290A.03, subdivision 13, is amended to read:
112.2 Subd. 13.
Property taxes payable. "Property taxes payable" means the property tax
112.3exclusive of special assessments, penalties, and interest payable on a claimant's homestead
112.4after deductions made under sections
273.135,
273.1384,
273.1391,
273.42, subdivision 2,
112.5and any other state paid property tax credits in any calendar year, and after any refund
112.6claimed and allowable under section
290A.04, subdivision 2h, that is first payable in
112.7the year that the property tax is payable. In the case of a claimant who makes ground
112.8lease payments, "property taxes payable" includes the amount of the payments directly
112.9attributable to the property taxes assessed against the parcel on which the house is located.
112.10No apportionment or reduction of the "property taxes payable" shall be required for the
112.11use of a portion of the claimant's homestead for a business purpose if the claimant does not
112.12deduct any business depreciation expenses for the use of a portion of the homestead in the
112.13determination of federal adjusted gross income. For homesteads which are manufactured
112.14homes as defined in section
273.125, subdivision 8, and for homesteads which are park
112.15trailers taxed as manufactured homes under section
168.012, subdivision 9, "property
112.16taxes payable" shall also include 19
new text begin 15new text end percent of the gross rent paid in the preceding
112.17year for the site on which the homestead is located. When a homestead is owned by
112.18two or more persons as joint tenants or tenants in common, such tenants shall determine
112.19between them which tenant may claim the property taxes payable on the homestead. If
112.20they are unable to agree, the matter shall be referred to the commissioner of revenue
112.21whose decision shall be final. Property taxes are considered payable in the year prescribed
112.22by law for payment of the taxes.
112.23In the case of a claim relating to "property taxes payable," the claimant must have
112.24owned and occupied the homestead on January 2 of the year in which the tax is payable
112.25and (i) the property must have been classified as homestead property pursuant to section
112.26273.124
, on or before December 15 of the assessment year to which the "property taxes
112.27payable" relate; or (ii) the claimant must provide documentation from the local assessor
112.28that application for homestead classification has been made on or before December 15
112.29of the year in which the "property taxes payable" were payable and that the assessor has
112.30approved the application.
112.31
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for claims based on rent paid in new text end
112.32
new text begin 2010 and following years.new text end
112.33 Sec. 19. Minnesota Statutes 2010, section 290A.04, subdivision 2, is amended to read:
112.34 Subd. 2.
Homeowners. A claimant whose property taxes payable are in excess
112.35of the percentage of the household income stated below shall pay an amount equal to
113.1the percent of income shown for the appropriate household income level along with the
113.2percent to be paid by the claimant of the remaining amount of property taxes payable.
113.3The state refund equals the amount of property taxes payable that remain, up to the state
113.4refund amount shown below.
113.5
113.6
113.7
Household Income
Percent of Income
Percent Paid by
Claimant
Maximum
State
Refund
113.8
$0 to 1,189
1.0 percent
15 percent
$
1,850
113.9
1,190 to 2,379
1.1 percent
15 percent
$
1,850
113.10
2,380 to 3,589
1.2 percent
15 percent
$
1,800
113.11
3,590 to 4,789
1.3 percent
20 percent
$
1,800
113.12
4,790 to 5,979
1.4 percent
20 percent
$
1,730
113.13
5,980 to 8,369
1.5 percent
20 percent
$
1,730
113.14
8,370 to 9,559
1.6 percent
25 percent
$
1,670
113.15
9,560 to 10,759
1.7 percent
25 percent
$
1,670
113.16
10,760 to 11,949
1.8 percent
25 percent
$
1,610
113.17
11,950 to 13,139
1.9 percent
30 percent
$
1,610
113.18
13,140 to 14,349
2.0 percent
30 percent
$
1,540
113.19
14,350 to 16,739
2.1 percent
30 percent
$
1,540
113.20
16,740 to 17,929
2.2 percent
35 percent
$
1,480
113.21
17,930 to 19,119
2.3 percent
35 percent
$
1,480
113.22
19,120 to 20,319
2.4 percent
35 percent
$
1,420
113.23
20,320 to 25,099
2.5 percent
40 percent
$
1,420
113.24
25,100 to 28,679
2.6 percent
40 percent
$
1,360
113.25
28,680 to 35,849
2.7 percent
40 percent
$
1,360
113.26
35,850 to 41,819
2.8 percent
45 percent
$
1,240
113.27
41,820 to 47,799
3.0 percent
45 percent
$
1,240
113.28
47,800 to 53,779
3.2 percent
45 percent
$
1,110
113.29
53,780 to 59,749
3.5 percent
50 percent
$
990
113.30
59,750 to 65,729
3.5 percent
50 percent
$
870
113.31
65,730 to 69,319
3.5 percent
50 percent
$
740
113.32
69,320 to 71,719
3.5 percent
50 percent
$
610
113.33
71,720 to 74,619
3.5 percent
50 percent
$
500
113.34
74,620 to 77,519
3.5 percent
50 percent
$
370
113.35
113.36
113.37
new text begin Household Incomenew text end
new text begin Percent of Incomenew text end
new text begin Percent Paid bynew text end
new text begin Claimantnew text end
new text begin Maximum new text end
new text begin Statenew text end
new text begin Refundnew text end
113.38
new text begin $0 to 1,549new text end
new text begin 1.0 percentnew text end
new text begin 15 percentnew text end
new text begin $new text end
new text begin 2,460new text end
113.39
new text begin 1,550 to 3,089new text end
new text begin 1.1 percentnew text end
new text begin 15 percentnew text end
new text begin $new text end
new text begin 2,460new text end
113.40
new text begin 3,090 to 4,669new text end
new text begin 1.2 percentnew text end
new text begin 15 percentnew text end
new text begin $new text end
new text begin 2,460new text end
113.41
new text begin 4,670 to 6,229new text end
new text begin 1.3 percentnew text end
new text begin 20 percentnew text end
new text begin $new text end
new text begin 2,460new text end
113.42
new text begin 6,230 to 7,769new text end
new text begin 1.4 percentnew text end
new text begin 20 percentnew text end
new text begin $new text end
new text begin 2,460new text end
114.1
new text begin 7,770 to 10,879new text end
new text begin 1.5 percentnew text end
new text begin 20 percentnew text end
new text begin $new text end
new text begin 2,460new text end
114.2
new text begin 10,880 to 12,429new text end
new text begin 1.6 percentnew text end
new text begin 20 percentnew text end
new text begin $new text end
new text begin 2,460new text end
114.3
new text begin 12,430 to 13,989new text end
new text begin 1.7 percentnew text end
new text begin 20 percentnew text end
new text begin $new text end
new text begin 2,460new text end
114.4
new text begin 13,990 to 15,539new text end
new text begin 1.8 percentnew text end
new text begin 20 percentnew text end
new text begin $new text end
new text begin 2,460new text end
114.5
new text begin 15,540 to 17,079new text end
new text begin 1.9 percentnew text end
new text begin 25 percentnew text end
new text begin $new text end
new text begin 2,460new text end
114.6
new text begin 17,080 to 18,659new text end
new text begin 2.0 percentnew text end
new text begin 25 percentnew text end
new text begin $new text end
new text begin 2,460new text end
114.7
new text begin 18,660 to 21,759new text end
new text begin 2.1 percentnew text end
new text begin 25 percentnew text end
new text begin $new text end
new text begin 2,460new text end
114.8
new text begin 21,760 to 23,309new text end
new text begin 2.2 percentnew text end
new text begin 30 percentnew text end
new text begin $new text end
new text begin 2,460new text end
114.9
new text begin 23,310 to 24,859new text end
new text begin 2.3 percentnew text end
new text begin 30 percentnew text end
new text begin $new text end
new text begin 2,460new text end
114.10
new text begin 24,860 to 26,419new text end
new text begin 2.4 percentnew text end
new text begin 30 percentnew text end
new text begin $new text end
new text begin 2,460new text end
114.11
new text begin 26,420 to 32,629new text end
new text begin 2.5 percentnew text end
new text begin 35 percentnew text end
new text begin $new text end
new text begin 2,460new text end
114.12
new text begin 32,630 to 37,279new text end
new text begin 2.6 percentnew text end
new text begin 35 percentnew text end
new text begin $new text end
new text begin 2,460new text end
114.13
new text begin 37,280 to 46,609new text end
new text begin 2.7 percentnew text end
new text begin 35 percentnew text end
new text begin $new text end
new text begin 2,000new text end
114.14
new text begin 46,610 to 54,369new text end
new text begin 2.8 percentnew text end
new text begin 35 percentnew text end
new text begin $new text end
new text begin 2,000new text end
114.15
new text begin 54,370 to 62,139new text end
new text begin 2.8 percentnew text end
new text begin 40 percentnew text end
new text begin $new text end
new text begin 1,750new text end
114.16
new text begin 62,140 to 69,909new text end
new text begin 3.0 percentnew text end
new text begin 40 percentnew text end
new text begin $new text end
new text begin 1,440new text end
114.17
new text begin 69,910 to 77,679new text end
new text begin 3.0 percentnew text end
new text begin 40 percentnew text end
new text begin $new text end
new text begin 1,290new text end
114.18
new text begin 77,680 to 85,449new text end
new text begin 3.0 percentnew text end
new text begin 40 percentnew text end
new text begin $new text end
new text begin 1,130new text end
114.19
new text begin 85,450 to 90,119new text end
new text begin 3.5 percentnew text end
new text begin 45 percentnew text end
new text begin $new text end
new text begin 960new text end
114.20
new text begin 90,120 to 93,239new text end
new text begin 3.5 percentnew text end
new text begin 45 percentnew text end
new text begin $new text end
new text begin 790new text end
114.21
new text begin 93,240 to 97,009new text end
new text begin 3.5 percentnew text end
new text begin 50 percentnew text end
new text begin $new text end
new text begin 650new text end
114.22
new text begin 97,010 to 100,779new text end
new text begin 3.5 percentnew text end
new text begin 50 percentnew text end
new text begin $new text end
new text begin 480new text end
114.23 The payment made to a claimant shall be the amount of the state refund calculated
114.24under this subdivision. No payment is allowed if the claimant's household income is
114.25$77,520
new text begin $100,780new text end or more.
114.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective beginning with refunds based on new text end
114.27
new text begin taxes payable in 2012.new text end
114.28 Sec. 20. Minnesota Statutes 2010, section 290A.04, subdivision 2a, is amended to read:
114.29 Subd. 2a.
Rentersnew text begin ; senior or disablednew text end . A claimant whose rent constituting property
114.30taxes exceeds the percentage of the household income stated below must pay an amount
114.31equal to the percent of income shown for the appropriate household income level along
114.32with the percent to be paid by the claimant of the remaining amount of rent constituting
114.33property taxes. The state refund equals the amount of rent constituting property taxes that
114.34remain, up to the maximum state refund amount shown below.
new text begin This subdivision applies new text end
114.35
new text begin only if the claimant or claimant's spouse was disabled or attained the age of 65 on or new text end
114.36
new text begin before December 31 of the year for which the rent was paid.new text end
115.1
115.2
115.3
Household Income
Percent of Income
Percent Paid by
Claimant
Maximum
State
Refund
115.4
115.5
$0 to 3,589new text begin 4,599new text end
1.0 percent
5 percent
$
1,190
new text begin 1,520new text end
115.6
115.7
3,590 to 4,779
new text begin 4,600 to 6,119new text end
1.0 percent
10 percent
$
1,190
new text begin 1,520new text end
115.8
115.9
4,780 to 5,969
new text begin 6,120 to 7,639new text end
1.1 percent
10 percent
$
1,190
new text begin 1,520new text end
115.10
115.11
5,970 to 8,369
new text begin 7,640 to 10,719new text end
1.2 percent
10 percent
$
1,190
new text begin 1,520new text end
115.12
115.13
8,370 to 10,759
new text begin 10,720 to 13,779new text end
1.3 percent
15 percent
$
1,190
new text begin 1,520new text end
115.14
115.15
10,760 to 11,949
new text begin 13,780 to 15,299new text end
1.4 percent
15 percent
$
1,190
new text begin 1,520new text end
115.16
115.17
11,950 to 13,139
new text begin 15,300 to 16,819new text end
1.4 percent
20 percent
$
1,190
new text begin 1,520new text end
115.18
115.19
13,140 to 15,539
new text begin 16,820 to 19,899new text end
1.5 percent
20 percent
$
1,190
new text begin 1,520new text end
115.20
115.21
15,540 to 16,729
new text begin 19,900 to 21,419new text end
1.6 percent
20 percent
$
1,190
new text begin 1,520new text end
115.22
115.23
16,730 to 17,919
new text begin 21,420 to 22,939new text end
1.7 percent
25 percent
$
1,190
new text begin 1,520new text end
115.24
115.25
17,920 to 20,319
new text begin 22,940 to 26,009new text end
1.8 percent
25 percent
$
1,190
new text begin 1,520new text end
115.26
115.27
20,320 to 21,509
new text begin 26,010 to 27,539new text end
1.9 percent
30 percent
$
1,190
new text begin 1,500new text end
115.28
115.29
21,510 to 22,699
new text begin 27,540 to 29,059new text end
2.0 percent
30 percent
$
1,190
new text begin 1,400new text end
115.30
115.31
22,700 to 23,899
new text begin 29,060 to 30,599new text end
2.2 percent
30 percent
$
1,190
new text begin 1,300new text end
115.32
115.33
23,900 to 25,089
new text begin 30,600 to 32,119new text end
2.4 percent
30 percent
$
1,190
new text begin 1,200new text end
115.34
115.35
25,090 to 26,289
new text begin 32,120 to 33,659new text end
2.6 percent
35 percent
$
1,190
new text begin 1,000new text end
115.36
115.37
26,290 to 27,489
new text begin 33,660 to 35,189new text end
2.7 percent
35 percent
$
1,190
new text begin 1,000new text end
115.38
115.39
27,490 to 28,679
new text begin 35,190 to 36,719new text end
2.8 percent
35 percent
$
1,190
new text begin 750new text end
115.40
115.41
28,680 to 29,869
new text begin 36,720 to 38,239new text end
2.9 percent
40 percent
$
1,190
new text begin 500new text end
115.42
115.43
29,870 to 31,079
new text begin 38,240 to 39,999new text end
3.0 percent
40 percent
$
1,190
new text begin 250new text end
115.44
31,080 to 32,269
3.1 percent
40 percent
$
1,190
115.45
32,270 to 33,459
3.2 percent
40 percent
$
1,190
115.46
33,460 to 34,649
3.3 percent
45 percent
$
1,080
115.47
34,650 to 35,849
3.4 percent
45 percent
$
960
115.48
35,850 to 37,049
3.5 percent
45 percent
$
830
116.1
37,050 to 38,239
3.5 percent
50 percent
$
720
116.2
38,240 to 39,439
3.5 percent
50 percent
$
600
116.3
38,440 to 40,629
3.5 percent
50 percent
$
360
116.4
40,630 to 41,819
3.5 percent
50 percent
$
120
116.5The payment made to a claimant is the amount of the state refund calculated under
116.6this subdivision. No payment is allowed if the claimant's household income is $41,820
new text begin new text end
116.7
new text begin $40,000new text end or more.
116.8
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for claims based on rent paid in new text end
116.9
new text begin 2010 and following years.new text end
116.10 Sec. 21. Minnesota Statutes 2010, section 290A.04, is amended by adding a
116.11subdivision to read:
116.12
new text begin Subd. 2k.new text end new text begin Renters; nonsenior nondisabled.new text end new text begin A claimant whose rent constituting new text end
116.13
new text begin property taxes exceeds the percentage of the household income stated below must pay new text end
116.14
new text begin an amount equal to the percent of income shown for the appropriate household income new text end
116.15
new text begin level along with the percent to be paid by the claimant of the remaining amount of rent new text end
116.16
new text begin constituting property taxes. The state refund equals the amount of rent constituting new text end
116.17
new text begin property taxes that remain, up to the maximum state refund amount shown below. This new text end
116.18
new text begin subdivision applies only if the claimant or claimant's spouse is not eligible for a refund new text end
116.19
new text begin under subdivision 2a.new text end
116.20
116.21
116.22
new text begin Household Incomenew text end
new text begin Percent of Incomenew text end
new text begin Percent Paid bynew text end
new text begin Claimantnew text end
new text begin Maximum new text end
new text begin Statenew text end
new text begin Refundnew text end
116.23
new text begin $0 to 4,599new text end
new text begin 1.0 percentnew text end
new text begin 15 percentnew text end
new text begin $new text end
new text begin 1,000new text end
116.24
new text begin 4,600 to 6,119new text end
new text begin 1.0 percentnew text end
new text begin 15 percentnew text end
new text begin $new text end
new text begin 1,000new text end
116.25
new text begin 6,120 to 7,639new text end
new text begin 1.1 percentnew text end
new text begin 20 percentnew text end
new text begin $new text end
new text begin 1,000new text end
116.26
new text begin 7,640 to 10,719new text end
new text begin 1.2 percentnew text end
new text begin 20 percentnew text end
new text begin $new text end
new text begin 900new text end
116.27
new text begin 10,720 to 13,779new text end
new text begin 1.3 percentnew text end
new text begin 25 percentnew text end
new text begin $new text end
new text begin 800new text end
116.28
new text begin 13,780 to 15,299new text end
new text begin 1.4 percentnew text end
new text begin 25 percentnew text end
new text begin $new text end
new text begin 800new text end
116.29
new text begin 15,300 to 16,819new text end
new text begin 1.4 percentnew text end
new text begin 30 percentnew text end
new text begin $new text end
new text begin 600new text end
116.30
new text begin 16,820 to 19,899new text end
new text begin 1.5 percentnew text end
new text begin 30 percentnew text end
new text begin $new text end
new text begin 600new text end
116.31
new text begin 19,900 to 21,419new text end
new text begin 1.6 percentnew text end
new text begin 35 percentnew text end
new text begin $new text end
new text begin 400new text end
116.32
new text begin 21,420 to 22,939new text end
new text begin 1.7 percentnew text end
new text begin 35 percentnew text end
new text begin $new text end
new text begin 400new text end
116.33
new text begin 22,940 to 24,999new text end
new text begin 1.8 percentnew text end
new text begin 40 percentnew text end
new text begin $new text end
new text begin 200new text end
116.34
new text begin The payment made to a claimant is the amount of the state refund calculated under new text end
116.35
new text begin this subdivision. No payment is allowed if the claimant's household income is $25,000 new text end
116.36
new text begin or more.new text end
117.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for claims based on rent paid in new text end
117.2
new text begin 2010 and following years.new text end
117.3 Sec. 22. Minnesota Statutes 2010, section 290A.04, subdivision 4, is amended to read:
117.4 Subd. 4.
Inflation adjustment. new text begin (a) new text end Beginning for property tax refunds payable in
117.5calendar year 2002, the commissioner shall annually adjust the dollar amounts of the
117.6income thresholds and the maximum refunds under subdivisions
new text begin subdivisionnew text end 2 and 2a for
117.7inflation. The commissioner shall make the inflation adjustments in accordance with
117.8section 1(f) of the Internal Revenue Code, except that for purposes of this subdivision the
117.9percentage increase shall be determined from the year ending on June 30, 2000
new text begin 2011new text end , to
117.10the year ending on June 30 of the year preceding that in which the refund is payable.
117.11
new text begin (b) new text end The commissioner shall use the appropriate percentage increase to annually
117.12adjust the income thresholds and maximum refunds under subdivisions
new text begin subdivisionnew text end
117.132 and 2a for inflation without regard to whether or not the income tax brackets are
117.14adjusted for inflation in that year. The commissioner shall round the thresholds and the
117.15maximum amounts, as adjusted to the nearest $10 amount. If the amount ends in $5, the
117.16commissioner shall round it up to the next $10 amount.
117.17
new text begin (c) new text end The commissioner shall annually announce the adjusted refund schedule at the
117.18same time provided under section
290.06. The determination of the commissioner under
117.19this subdivision is not a rule under the Administrative Procedure Act.
117.20
new text begin EFFECTIVE DATE.new text end new text begin The changes to this section relating to refunds under new text end
117.21
new text begin subdivision 2 are effective beginning for refunds based on taxes payable in 2013 and new text end
117.22
new text begin the changes relating to refunds under subdivision 2a are effective beginning for refunds new text end
117.23
new text begin based on rent paid in 2011.new text end
117.24 Sec. 23.
new text begin [373.51] ALTERNATIVE PROCESS FOR CONSOLIDATION.new text end
117.25
new text begin Notwithstanding the provisions relating to petitions in sections 371.02 and 371.03, new text end
117.26
new text begin two or more counties may begin the process for consolidation by filing with the secretary new text end
117.27
new text begin of state a resolution unanimously adopted by the board of each affected county to seek new text end
117.28
new text begin voter approval for consolidation of the counties following the procedures in chapter 371. new text end
117.29 Sec. 24. Minnesota Statutes 2010, section 477A.011, is amended by adding a
117.30subdivision to read:
117.31
new text begin Subd. 1c.new text end new text begin First class city.new text end new text begin "First class city" means a city of the first class as of new text end
117.32
new text begin 2009 as defined in section 410.01.new text end
118.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for aids payable in calendar year new text end
118.2
new text begin 2011 and thereafter.new text end
118.3 Sec. 25. Minnesota Statutes 2010, section 477A.011, subdivision 20, is amended to
118.4read:
118.5 Subd. 20.
City net tax capacity. "City net tax capacity" means (1) the net tax
118.6capacity computed using the net tax capacity rates in section
273.13 for taxes payable
118.7in the year of the aid distribution, and the market values
new text begin , after the exclusion in section new text end
118.8
new text begin 273.13, subdivision 35,new text end for taxes payable in the year prior to the aid distribution plus (2)
118.9a city's fiscal disparities distribution tax capacity under section
276A.06, subdivision 2,
118.10paragraph (b), or
473F.08, subdivision 2, paragraph (b), for taxes payable in the year prior
118.11to that for which aids are being calculated. The market value utilized in computing city
118.12net tax capacity shall be reduced by the sum of (1) a city's market value of commercial
118.13industrial property as defined in section
276A.01, subdivision 3, or
473F.02, subdivision 3,
118.14multiplied by the ratio determined pursuant to section
276A.06, subdivision 2, paragraph
118.15(a), or
473F.08, subdivision 2, paragraph (a), (2) the market value of the captured value
118.16of tax increment financing districts as defined in section
469.177, subdivision 2, and (3)
118.17the market value of transmission lines deducted from a city's total net tax capacity under
118.18section
273.425. The city net tax capacity will be computed using equalized market values.
118.19
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for aids payable in calendar year new text end
118.20
new text begin 2013 and thereafter.new text end
118.21 Sec. 26. Minnesota Statutes 2010, section 477A.0124, is amended by adding a
118.22subdivision to read:
118.23
new text begin Subd. 6.new text end new text begin Aid payments in 2011 and 2012.new text end new text begin Notwithstanding total aids calculated or new text end
118.24
new text begin certified for 2011 under subdivisions 3, 4, and 5, for 2011 and 2012, each county shall new text end
118.25
new text begin receive an aid distribution under this section equal to the lesser of (1) the total amount of new text end
118.26
new text begin aid it received under this section in 2010 after the reductions under sections 477A.0133 new text end
118.27
new text begin and 477A.0134, or (2) the total amount the county is certified to receive in 2011 under new text end
118.28
new text begin subdivisions 3 to 5.new text end
118.29
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for aids payable in calendar year new text end
118.30
new text begin 2011 and 2012.new text end
118.31 Sec. 27. Minnesota Statutes 2010, section 477A.013, subdivision 8, is amended to read:
119.1 Subd. 8.
City formula aid. The formula aid for a city is equal to the sum of (1) its
119.2city jobs base, (2) its small city aid base, and (3) the need increase percentage multiplied
119.3by the average of its unmet need for the most recently available two years.
119.4No city may have a formula aid amount less than zero. The need increase percentage must
119.5be the same for all cities.
new text begin For first class cities, the formula aid is 25 percent of its base new text end
119.6
new text begin aid as defined in subdivision 11, paragraph (a), for aids payable in 2013 and zero for aids new text end
119.7
new text begin payable in 2014 and thereafter.new text end
119.8 The applicable need increase percentage must be calculated by the Department of
119.9Revenue so that the total of the aid under subdivision 9 equals the total amount available
119.10for aid under section
477A.03. Data used in calculating aids to cities under sections
119.11477A.011
to
477A.013 shall be the most recently available data as of January 1 in the
119.12year in which the aid is calculated except that the data used to compute "net levy" in
119.13subdivision 9 is the data most recently available at the time of the aid computation.
119.14
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for aids payable in calendar year new text end
119.15
new text begin 2013 and thereafter.new text end
119.16 Sec. 28. Minnesota Statutes 2010, section 477A.013, subdivision 9, is amended to read:
119.17 Subd. 9.
City aid distribution. (a) In calendar year 2009 and thereafter, each
119.18city shall receive an aid distribution equal to the sum of (1) the city formula aid under
119.19subdivision 8, and (2) its city aid base.
119.20 (b) For aids payable in 2011
new text begin 2013new text end only, the total aid in the previous year for any
119.21city shall mean the amount of aid it was certified to receive for aids payable in 2010
new text begin new text end
119.22
new text begin 2012new text end under this section minus the amount of its aid reduction under section
new text begin new text end
119.23
new text begin subdivision 11new text end . For aids payable in 2012
new text begin 2014new text end and thereafter, the total aid in the previous
119.24year for any city means the amount of aid it was certified to receive under this section in
119.25the previous payable year.
119.26 (c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed
119.27the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution
119.28plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total
119.29aid for any city with a population of 2,500 or more may not be less than its total aid under
119.30this section in the previous year minus the lesser of $10 multiplied by its population, or ten
119.31percent of its net levy in the year prior to the aid distribution.
119.32 (d) For aids payable in 2010 and thereafter, the total aid for a city with a population
119.33less than 2,500 must not be less than the amount it was certified to receive in the
119.34previous year minus the lesser of $10 multiplied by its population, or five percent of its
119.352003 certified aid amount. For aids payable in 2009 only, the total aid for a city with a
120.1population less than 2,500 must not be less than what it received under this section in the
120.2previous year unless its total aid in calendar year 2008 was aid under section
477A.011,
120.3subdivision 36, paragraph (s), in which case its minimum aid is zero.
120.4 (e) A city's aid loss under this section may not exceed $300,000 in any year in
120.5which the total city aid appropriation under section
477A.03, subdivision 2a, is equal or
120.6greater than the appropriation under that subdivision in the previous year, unless the
120.7city has an adjustment in its city net tax capacity under the process described in section
120.8469.174, subdivision 28
.
120.9 (f) If a city's net tax capacity used in calculating aid under this section has decreased
120.10in any year by more than 25 percent from its net tax capacity in the previous year due to
120.11property becoming tax-exempt Indian land, the city's maximum allowed aid increase
120.12under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the
120.13year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease
120.14resulting from the property becoming tax exempt.
120.15
new text begin (g) Notwithstanding paragraphs (a) to (f), the total aid for a first class city is its new text end
120.16
new text begin formula aid under subdivision 8.new text end
120.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for aids payable in calendar year new text end
120.18
new text begin 2013 and thereafter.new text end
120.19 Sec. 29. Minnesota Statutes 2010, section 477A.013, is amended by adding a
120.20subdivision to read:
120.21
new text begin Subd. 11.new text end new text begin Aid payments in 2011 and 2012.new text end new text begin (a) For purposes of this subdivision, new text end
120.22
new text begin "base aid" means the lesser of (1) the total amount of aid it received under this section new text end
120.23
new text begin in 2010, after the reductions under sections 477A.0133 and 477A.0134 and reduced by new text end
120.24
new text begin the amount of payments under section 477A.011, subdivision 36, paragraphs (y) and (z), new text end
120.25
new text begin or (2) the amount it was certified to receive in 2011 under subdivision 9. In 2011 only, new text end
120.26
new text begin a city that qualifies for the aid base adjustment under section 477A.011, subdivision 36, new text end
120.27
new text begin paragraph (aa), shall receive the amount that it was certified to receive in 2011. In 2012, new text end
120.28
new text begin a city that qualifies for the aid base adjustment under section 477A.011, subdivision 36, new text end
120.29
new text begin paragraph (aa), shall receive the amount that it was certified to receive in 2011, minus the new text end
120.30
new text begin aid base adjustment provided under section 477A.011, subdivision 36, paragraph (aa).new text end
120.31
new text begin (b) Notwithstanding aids calculated or certified for aids payable in 2011 under new text end
120.32
new text begin subdivision 9, in 2011 each city shall receive an aid distribution under this section as new text end
120.33
new text begin follows:new text end
120.34
new text begin (1) for a first class city, 75 percent of its base aid as defined in paragraph (a); andnew text end
120.35
new text begin (2) for any other city, its base aid as determined under paragraph (a).new text end
121.1
new text begin (c) Notwithstanding aids calculated or certified for aids payable in 2012 under new text end
121.2
new text begin subdivision 9, in 2012 each city shall receive an aid distribution under this section as new text end
121.3
new text begin follows:new text end
121.4
new text begin (1) for a first class city, 50 percent of its base aid as defined in paragraph (a); andnew text end
121.5
new text begin (2) for any other city, its base aid as defined under paragraph (a).new text end
121.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for aids payable in calendar years new text end
121.7
new text begin 2011 and 2012.new text end
121.8 Sec. 30. Minnesota Statutes 2010, section 477A.03, is amended to read:
121.9
477A.03 APPROPRIATION.
121.10 Subd. 2.
Annual appropriation. A sum sufficient to discharge the duties imposed
121.11by sections
477A.011 to
477A.014 is annually appropriated from the general fund to the
121.12commissioner of revenue.
121.13 Subd. 2a.
Cities. new text begin For aids payable in 2013 only, the total aid paid under section new text end
121.14
new text begin 477A.013, subdivision 9, is $318,774,184. new text end For aids payable in 2011
new text begin 2014new text end and thereafter,
121.15the total aid paid under section
477A.013, subdivision 9, is $527,100,646
new text begin $283,292,875new text end .
121.16 Subd. 2b.
Counties. (a) For aids payable in 2011
new text begin 2013new text end and thereafter, the total aid
121.17payable under section
477A.0124, subdivision 3, is $96,395,000
new text begin $78,218,000new text end . Each
121.18calendar year, $500,000 shall be retained by the commissioner of revenue to make
121.19reimbursements to the commissioner of management and budget for payments made
121.20under section
611.27. For calendar year 2004, the amount shall be in addition to the
121.21payments authorized under section
477A.0124, subdivision 1. For calendar year 2005
121.22and subsequent years, The amount shall be deducted from the appropriation under
121.23this paragraph. The reimbursements shall be to defray the additional costs associated
121.24with court-ordered counsel under section
611.27. Any retained amounts not used for
121.25reimbursement in a year shall be included in the next distribution of county need aid
121.26that is certified to the county auditors for the purpose of property tax reduction for the
121.27next taxes payable year.
121.28 (b) For aids payable in 2011
new text begin 2013new text end and thereafter, the total aid under section
121.29477A.0124, subdivision 4
, is $101,309,575
new text begin $83,133,000new text end . The commissioner of
121.30management and budget shall bill the commissioner of revenue for the cost of preparation
121.31of local impact notes as required by section
3.987, not to exceed $207,000 in fiscal year
121.322004 and thereafter. The commissioner of education shall bill the commissioner of
121.33revenue for the cost of preparation of local impact notes for school districts as required by
121.34section
3.987, not to exceed $7,000 in fiscal year 2004 and thereafter. The commissioner
122.1of revenue shall deduct the amounts billed under this paragraph from the appropriation
122.2under this paragraph. The amounts deducted are appropriated to the commissioner of
122.3management and budget and the commissioner of education for the preparation of local
122.4impact notes.
122.5
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for aids payable in calendar year new text end
122.6
new text begin 2012 and thereafter.new text end
122.7 Sec. 31. Minnesota Statutes 2010, section 477A.11, subdivision 1, is amended to read:
122.8 Subdivision 1.
Terms. For the purpose of sections
477A.11 to
new text begin 477A.14new text end ,
122.9the terms defined in this section have the meanings given them.
122.10
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for aids payable in calendar year new text end
122.11
new text begin 2011 and thereafter.new text end
122.12 Sec. 32. Minnesota Statutes 2010, section 477A.12, subdivision 1, is amended to read:
122.13 Subdivision 1.
Types of land; payments. (a) As an offset for expenses incurred
122.14by counties and towns in support of natural resources lands, the following amounts are
122.15annually appropriated to the commissioner of natural resources from the general fund for
122.16transfer to the commissioner of revenue. The commissioner of revenue shall pay the
122.17transferred funds to counties as required by sections
477A.11 to
new text begin 477A.14new text end .
122.18The amounts are:
122.19(1) for acquired natural resources land, $3, as adjusted for inflation under section
122.20,
new text begin $4.517new text end multiplied by the total number of acres of acquired natural resources
122.21land or, at the county's option three-fourths of one
new text begin 0.66new text end percent of the appraised value of
122.22all acquired natural resources land in the county, whichever is greater;
122.23(2) 75 cents, as adjusted for inflation under section
,
new text begin $1.129new text end multiplied by
122.24the number of acres of county-administered other natural resources land;
122.25(3) 75 cents, as adjusted for inflation under section
,
new text begin $1.129new text end multiplied by
122.26the total number of acres of land utilization project land; and
122.27(4) 37.5 cents, as adjusted for inflation under section
,
new text begin 56.5 centsnew text end multiplied
122.28by the number of acres of commissioner-administered other natural resources land located
122.29in each county as of July 1 of each year prior to the payment year.
122.30(b) The amount determined under paragraph (a), clause (1), is payable for land
122.31that is acquired from a private owner and owned by the Department of Transportation
122.32for the purpose of replacing wetland losses caused by transportation projects, but only
123.1if the county contains more than 500 acres of such land at the time the certification is
123.2made under subdivision 2.
123.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for aids payable in calendar year new text end
123.4
new text begin 2011 and thereafter.new text end
123.5 Sec. 33. Minnesota Statutes 2010, section 477A.14, subdivision 1, is amended to read:
123.6 Subdivision 1.
General distribution. Except as provided in subdivision 2 or in
123.7section
97A.061, subdivision 5, 40 percent of the total payment to the county shall be
123.8deposited in the county general revenue fund to be used to provide property tax levy
123.9reduction. The remainder shall be distributed by the county in the following priority:
123.10(a) 37.5 cents, as adjusted for inflation under section
,
new text begin 56.5 cents new text end for
123.11each acre of county-administered other natural resources land shall be deposited in a
123.12resource development fund to be created within the county treasury for use in resource
123.13development, forest management, game and fish habitat improvement, and recreational
123.14development and maintenance of county-administered other natural resources land. Any
123.15county receiving less than $5,000 annually for the resource development fund may elect to
123.16deposit that amount in the county general revenue fund;
123.17(b) From the funds remaining, within 30 days of receipt of the payment to the
123.18county, the county treasurer shall pay each organized township 30 cents, as adjusted for
123.19inflation under section
,
new text begin 45.2 centsnew text end for each acre of acquired natural resources
123.20land and each acre of land described in section
477A.12, subdivision 1, paragraph (b), and
123.217.5 cents, as adjusted for inflation under section
,
new text begin 11.3 centsnew text end for each acre of
123.22other natural resources land and each acre of land utilization project land located within its
123.23boundaries. Payments for natural resources lands not located in an organized township
123.24shall be deposited in the county general revenue fund. Payments to counties and townships
123.25pursuant to this paragraph shall be used to provide property tax levy reduction, except
123.26that of the payments for natural resources lands not located in an organized township, the
123.27county may allocate the amount determined to be necessary for maintenance of roads in
123.28unorganized townships. Provided that, if the total payment to the county pursuant to
123.29section
477A.12 is not sufficient to fully fund the distribution provided for in this clause,
123.30the amount available shall be distributed to each township and the county general revenue
123.31fund on a pro rata basis; and
123.32(c) Any remaining funds shall be deposited in the county general revenue fund.
123.33Provided that, if the distribution to the county general revenue fund exceeds $35,000, the
123.34excess shall be used to provide property tax levy reduction.
124.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for aids payable in calendar year new text end
124.2
new text begin 2011 and thereafter.new text end
124.3 Sec. 34. Minnesota Statutes 2010, section 477A.17, is amended to read:
124.4
477A.17 LAKE VERMILION STATE PARK AND SOUDAN
124.5
UNDERGROUND MINE STATE PARK; ANNUAL PAYMENTS.
124.6 (a) Beginning in fiscal year 2012, in lieu of the payment amount provided under
124.7section
477A.12, subdivision 1, clause (1), the county shall receive an annual payment for
124.8land acquired for Lake Vermilion State Park, established in section
85.012, subdivision
124.938a, and land within the boundary of Soudan Underground Mine State Park, established
124.10in section
85.012, subdivision 53a, equal to 1.5
new text begin 1.32new text end percent of the appraised value of
124.11the land.
124.12 (b) For the purposes of this section, the appraised value of the land acquired for
124.13Lake Vermilion State Park for the first five years after acquisition shall be the purchase
124.14price of the land, plus the value of any portion of the land that is acquired by donation.
124.15The appraised value must be redetermined by the county assessor every five years after
124.16the land is acquired.
124.17 (c) The annual payments under this section shall be distributed to the taxing
124.18jurisdictions containing the property as follows: one-third to the school districts; one-third
124.19to the town; and one-third to the county. The payment to school districts is not a county
124.20apportionment under section
127A.34 and is not subject to aid recapture. Each of those
124.21taxing jurisdictions may use the payments for their general purposes.
124.22 (d) Except as provided in this section, the payments shall be made as provided
124.23in sections
477A.11 to
477A.13.
124.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for aids payable in calendar year new text end
124.25
new text begin 2011 and thereafter.new text end
124.26 Sec. 35.
new text begin ADMINISTRATION OF PROPERTY TAX REFUND CLAIMS; 2011.new text end
124.27
new text begin In administering this bill for claims for refunds submitted using 19 percent of gross new text end
124.28
new text begin rent as rent constituting property taxes under prior law, the commissioner shall recalculate new text end
124.29
new text begin and pay the refund amounts using 15 percent of gross rent, subject to the reduced new text end
124.30
new text begin maximum income limits, maximum refunds, and increased copayment percentages in this new text end
124.31
new text begin bill. The commissioner shall notify the claimant that the recalculation was mandated by new text end
124.32
new text begin action of the 2011 Legislature.new text end
124.33
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
125.1 Sec. 36.
new text begin CREDIT REDUCTIONS AND LIMITATION; COUNTIES AND new text end
125.2
new text begin CITIES.new text end
125.3
new text begin In 2011, the market value credit reimbursement payment to each county and city new text end
125.4
new text begin authorized under Minnesota Statutes, section 273.1384, subdivision 4, may not exceed the new text end
125.5
new text begin reimbursement payment received by the county or city for taxes payable in 2010. new text end
125.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for credit reimbursements in 2011.new text end
125.7 Sec. 37.
new text begin PROPERTY TAX STATEMENT FOR TAXES PAYABLE IN 2012 ONLY.new text end
125.8
new text begin For the purposes of the property tax statements required under Minnesota Statutes, new text end
125.9
new text begin section 276.04, subdivision 2, for taxes payable in 2012 only, the gross tax amount shown new text end
125.10
new text begin for the previous year is the gross tax minus the residential homestead market value credit.new text end
125.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2012 only.new text end
125.12 Sec. 38.
new text begin REPORT ON PAYMENT IN LIEU OF TAXES FOR STATE NATURAL new text end
125.13
new text begin RESOURCE LANDS.new text end
125.14
new text begin By December 1, 2011, the commissioner of natural resources, after consultation with new text end
125.15
new text begin the commissioners of revenue and management and budget, and stakeholders, including new text end
125.16
new text begin representatives from affected local units of government and other interested parties, shall new text end
125.17
new text begin report to the chairs and ranking minority caucus members of the senate and house of new text end
125.18
new text begin representatives natural resources and tax policy and finance committees with recommended new text end
125.19
new text begin changes to payment in lieu of taxes for natural resource lands under Minnesota Statutes, new text end
125.20
new text begin sections 97A.061 and 477A.11 to 477A.145. The report shall include an analysis of the new text end
125.21
new text begin current payment and distribution system, and any recommended changes to:new text end
125.22
new text begin (1) the purpose of the payment system and the criteria for payments;new text end
125.23
new text begin (2) the rate of payments for specific classes of natural resource lands;new text end
125.24
new text begin (3) the formula for distribution of the payments to local units of government; andnew text end
125.25
new text begin (4) recognition in the amount of the payments of the tax capacity foregone by the new text end
125.26
new text begin local government due to the loss of the future development potential of the land.new text end
125.27 Sec. 39.
new text begin COOPERATION AND CONSOLIDATION GRANTS.new text end
125.28
new text begin Subdivision 1.new text end new text begin Definition.new text end new text begin For the purposes of this section, "local government" new text end
125.29
new text begin means a town, county, or home rule charter or statutory city.new text end
125.30
new text begin Subd. 2.new text end new text begin Grants.new text end new text begin The commissioner of administration may make a cooperation and new text end
125.31
new text begin consolidation grant to a local government that is participating with at least one other new text end
126.1
new text begin local government in planning for or implementing provision of services cooperatively or new text end
126.2
new text begin in planning and implementing consolidation of services, functions, or governance. The new text end
126.3
new text begin grants shall be made on a first-come first-served basis. The commissioner shall determine new text end
126.4
new text begin the form and content of the application and grant agreements. At a minimum, an new text end
126.5
new text begin application must contain a resolution adopted by the governing body of each participating new text end
126.6
new text begin local government supporting the cooperation or consolidation effort that identifies the new text end
126.7
new text begin services and functions the local government is considering providing cooperatively with new text end
126.8
new text begin one or more other local governments or that identifies the functions the local governments new text end
126.9
new text begin seek to consolidate. The maximum grant amount is $100,000 per local government.new text end
126.10
new text begin Subd. 3.new text end new text begin Report.new text end new text begin The commissioner of administration must report to the governor new text end
126.11
new text begin and legislative committees with jurisdiction over local government governance and local new text end
126.12
new text begin government taxes and finance on the cooperation and consolidation grants made and new text end
126.13
new text begin how the money was used, what services and functions have been provided by local new text end
126.14
new text begin governments in cooperation with each other, what programs or governance structures have new text end
126.15
new text begin been proposed for consolidation or consolidated, and what impediments remain that new text end
126.16
new text begin prevent cooperation, consolidation, and service innovation. An interim report is due new text end
126.17
new text begin February 1, 2012, and a final report is due December 15, 2012.new text end
126.18
new text begin Subd. 4.new text end new text begin Appropriation.new text end new text begin $1,000,000 in fiscal year 2012, and $2,500,000 in fiscal new text end
126.19
new text begin year 2013, are appropriated from the general fund to the commissioner of administration new text end
126.20
new text begin to make grants to counties as provided in this section.new text end
126.21 Sec. 40.
new text begin SUSTAINABLE FOREST INCENTIVE ACT REPEAL; TRANSITION new text end
126.22
new text begin PAYMENTS; APPROPRIATION.new text end
126.23
new text begin (a) Given the limits on state budgetary resources for the coming and future fiscal new text end
126.24
new text begin biennia, the projected cost of the sustainable forest resource management incentive new text end
126.25
new text begin program under Minnesota Statutes, chapter 290C, of over $31,000,000 for the fiscal 2012 new text end
126.26
new text begin and 2013 biennium, and the minimal amount of tangible public benefits of that program, new text end
126.27
new text begin the legislature determines that it is prudent and necessary to repeal that program effective new text end
126.28
new text begin immediately to help balance the state budget for the fiscal 2012 and 2013 biennium and to new text end
126.29
new text begin help provide permanent structural balance to the state budget. The legislature takes notice new text end
126.30
new text begin of and finds that many of the eligibility requirements for participants in the sustainable new text end
126.31
new text begin forest incentive program are in the participants' own financial interests, determined without new text end
126.32
new text begin regard to whether they receive state payments for doing so, and that the participants with new text end
126.33
new text begin the largest amounts of acreage in the program do follow and would likely continue to new text end
126.34
new text begin follow similar or more stringent management practices, regardless of whether the program new text end
127.1
new text begin exists. The legislature further finds that the modification of the sustainable forest incentive new text end
127.2
new text begin program made by Laws 2009, chapter 88, article 10, section 16, increased the per acre new text end
127.3
new text begin payments made to program claimants for fiscal year 2011 by approximately 80 percent, new text end
127.4
new text begin even though it was intended by the 2009 legislature to have little or no effect on the per new text end
127.5
new text begin acre amount of the payments. As a result, this legislative change provided unintended and new text end
127.6
new text begin windfall benefits to almost all the claimants. new text end
127.7
new text begin (b) On or before October 1, 2011, the commissioner of revenue shall pay to:new text end
127.8
new text begin (1) each claimant whose fiscal year 2011 payment was $100,000 under Laws 2010, new text end
127.9
new text begin First Special Session chapter 1, article 13, section 4, subdivision 3, a transition payment new text end
127.10
new text begin equal to one-twelfth for each month, or part of a month, of calendar year 2011 in which the new text end
127.11
new text begin claimant's covenant was in effect, multiplied by $100,000, except that this payment must new text end
127.12
new text begin be reduced, but not below zero, by the increase, if any, in the claimant's 2010 total payment new text end
127.13
new text begin resulting from the increase in the per acre payment rates between 2009 and 2010; andnew text end
127.14
new text begin (2) each claimant who was eligible for a payment in calendar year 2011 and who new text end
127.15
new text begin received no payment for calendar year 2010, a transition payment of $3.75 per acre of land new text end
127.16
new text begin enrolled in the program, but not to exceed the amount allowed per claimant to claimants new text end
127.17
new text begin receiving payments under clause (1).new text end
127.18
new text begin Because claimants not covered by clauses (1) or (2) received much larger per acre new text end
127.19
new text begin payments than intended for calendar year 2010, no transition payments are provided new text end
127.20
new text begin to them.new text end
127.21
new text begin For purposes of this paragraph (b), "claimant" refers to each Social Security number new text end
127.22
new text begin or state or federal business tax identification number.new text end
127.23
new text begin (c) An amount sufficient to make the transition payments required under paragraph new text end
127.24
new text begin (b) is appropriated to the commissioner of revenue from the general fund.new text end
127.25
new text begin (d) Land that had been enrolled in the sustainable forest incentive program on May new text end
127.26
new text begin 1, 2011, may be reclassified as class 2(c) managed forest land for taxes payable in 2012 new text end
127.27
new text begin if the owner applies to the assessor for the reclassification before September 1, 2011, new text end
127.28
new text begin notwithstanding the application date in Minnesota Statutes, section 273.13, subdivision new text end
127.29
new text begin 23, paragraph (d).new text end
127.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
127.31 Sec. 41.
new text begin REPEALER.new text end
127.32
new text begin (a)new text end new text begin Minnesota Statutes 2010, sections 10A.322, subdivision 4; and 13.4967, new text end
127.33
new text begin subdivision 2,new text end new text begin are repealed.new text end
127.34
new text begin (b)new text end new text begin Minnesota Statutes 2010, section 290.06, subdivision 23,new text end new text begin is repealed.new text end
127.35
new text begin (c)new text end new text begin Minnesota Statutes 2010, sections 275.295; and 477A.145,new text end new text begin are repealed.new text end
128.1
new text begin (d)new text end new text begin Minnesota Statutes 2010, section 273.1384, subdivisions 1 and 6,new text end new text begin are repealed.new text end
128.2
new text begin (e)new text end new text begin Minnesota Statutes 2010, sections 13.4967, subdivision 2b; 290C.01; 290C.02; new text end
128.3
new text begin 290C.03; 290C.04; 290C.05; 290C.055; 290C.06; 290C.07; 290C.08; 290C.09; 290C.10; new text end
128.4
new text begin 290C.11; 290C.12; and 290C.13,new text end new text begin are repealed.new text end
128.5
new text begin EFFECTIVE DATE.new text end new text begin Paragraph (a) is effective the day following final enactment. new text end
128.6
new text begin Paragraph (b) is effective for refund claims based on contributions made after June 30, new text end
128.7
new text begin 2011. Paragraph (c) is effective for aids payable in 2011 and thereafter. Paragraph (d) new text end
128.8
new text begin is effective for taxes payable in 2012 and thereafter. Paragraph (e) is effective the day new text end
128.9
new text begin following final enactment, and the covenants under the program are void on that date. No new text end
128.10
new text begin later than 90 days after enactment of this section, the commissioner of revenue shall issue new text end
128.11
new text begin a document to each enrollee releasing the land from the covenant as provided in Minnesota new text end
128.12
new text begin Statutes 2010, section 290C.04, paragraph (e), effective the day following final enactment.new text end
128.13
ARTICLE 8
128.14
MINERALS
128.15 Section 1. Minnesota Statutes 2010, section 272.02, is amended by adding a
128.16subdivision to read:
128.17
new text begin Subd. 95.new text end new text begin Property used in the business of mining subject to the net proceeds new text end
128.18
new text begin tax.new text end new text begin The following property used in the business of mining that is subject to the net new text end
128.19
new text begin proceeds tax under section 298.015 is exempt:new text end
128.20
new text begin (1) deposits of ores, metals, and minerals and the lands in which they are contained;new text end
128.21
new text begin (2) all real and personal property used in mining, quarrying, producing, or refining new text end
128.22
new text begin ores, minerals, or metals, including lands occupied by or used in connection with the new text end
128.23
new text begin mining, quarrying, production, or ore refining facilities; andnew text end
128.24
new text begin (3) concentrate or direct reduced ore.new text end
128.25
new text begin This exemption applies for each year that a person subject to tax under section new text end
128.26
new text begin 298.015 uses the property for mining, quarrying, producing, or refining ores, metals, or new text end
128.27
new text begin minerals.new text end
128.28
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2012 and new text end
128.29
new text begin thereafter.new text end
128.30 Sec. 2. Minnesota Statutes 2010, section 290.05, subdivision 1, is amended to read:
128.31 Subdivision 1.
Exempt entities. The following corporations, individuals, estates,
128.32trusts, and organizations shall be exempted from taxation under this chapter, provided
128.33that every such person or corporation claiming exemption under this chapter, in whole
129.1or in part, must establish to the satisfaction of the commissioner the taxable status of
129.2any income or activity:
129.3(a) corporations, individuals, estates, and trusts engaged in the business of mining or
129.4producing iron ore and
new text begin mining, producing, or refining new text end other ores
new text begin , metals, and minerals,new text end
129.5the mining or
new text begin ,new text end production
new text begin , or refiningnew text end of which is subject to the occupation tax imposed
129.6by section
298.01; but if any such corporation, individual, estate, or trust engages in any
129.7other business or activity or has income from any property not used in such business it
129.8shall be subject to this tax computed on the net income from such property or such other
129.9business or activity. Royalty shall not be considered as income from the business of
129.10mining or producing iron ore within the meaning of this section;
129.11(b) the United States of America, the state of Minnesota or any political subdivision
129.12of either agencies or instrumentalities, whether engaged in the discharge of governmental
129.13or proprietary functions; and
129.14(c) any insurance company.
129.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
129.16
new text begin December 31, 2010.new text end
129.17 Sec. 3. Minnesota Statutes 2010, section 298.001, is amended by adding a subdivision
129.18to read:
129.19
new text begin Subd. 10.new text end new text begin Refining.new text end new text begin "Refining" means and is limited to refining:new text end
129.20
new text begin (1) of ores, metals, or mineral products, the mining, extraction, or quarrying of new text end
129.21
new text begin which were subject to tax under section 298.015; andnew text end
129.22
new text begin (2) carried out by the entity, or an affiliated entity, that mined, extracted, or quarried new text end
129.23
new text begin the metal or mineral products.new text end
129.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
129.25
new text begin December 31, 2010.new text end
129.26 Sec. 4. Minnesota Statutes 2010, section 298.01, subdivision 3, is amended to read:
129.27 Subd. 3.
Occupation tax; other ores. Every person engaged in the business of
129.28mining
new text begin , refining,new text end or producing ores
new text begin , metals, or mineralsnew text end in this state, except iron ore or
129.29taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided
129.30in this subdivision.
new text begin For purposes of this subdivision, mining includes the application new text end
129.31
new text begin of hydrometallurgical processes. new text end The tax is determined in the same manner as the tax
129.32imposed by section
290.02, except that sections
290.05, subdivision 1, clause (a),
290.17,
129.33subdivision 4
, and
290.191, subdivision 2, do not apply, and the occupation tax must
130.1be computed by applying to taxable income the rate of 2.45 percent. A person subject
130.2to occupation tax under this section shall apportion its net income on the basis of the
130.3percentage obtained by taking the sum of:
130.4(1) 75 percent of the percentage which the sales made within this state in connection
130.5with the trade or business during the tax period are of the total sales wherever made in
130.6connection with the trade or business during the tax period;
130.7(2) 12.5 percent of the percentage which the total tangible property used by the
130.8taxpayer in this state in connection with the trade or business during the tax period is of
130.9the total tangible property, wherever located, used by the taxpayer in connection with the
130.10trade or business during the tax period; and
130.11(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
130.12in this state or paid in respect to labor performed in this state in connection with the trade
130.13or business during the tax period are of the taxpayer's total payrolls paid or incurred in
130.14connection with the trade or business during the tax period.
130.15The tax is in addition to all other taxes.
130.16
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
130.17
new text begin December 31, 2010.new text end
130.18 Sec. 5. Minnesota Statutes 2010, section 298.01, subdivision 3a, is amended to read:
130.19 Subd. 3a.
Gross income. (a) For purposes of determining a person's taxable income
130.20under subdivision 3, gross income is determined by the amount of gross proceeds from
130.21mining in this state under section
298.016 and includes any gain or loss recognized
130.22from the sale or disposition of assets used in the business in this state. If more than one
130.23
new text begin ore, new text end mineral,
new text begin or new text end metal, or energy resource referred to in section
298.016 is mined and
130.24processed at the same mine and plant, a gross income for each
new text begin ore, new text end mineral,
new text begin or new text end metal, or
130.25energy resource must be determined separately. The gross incomes may be combined on
130.26one occupation tax return to arrive at the gross income of all production.
130.27(b) In applying section
290.191, subdivision 5, transfers of ores
new text begin , metals, or minerals new text end
130.28
new text begin that are subject to tax under this chapternew text end are deemed to be sales in this state.
130.29
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
130.30
new text begin December 31, 2010.new text end
130.31 Sec. 6. Minnesota Statutes 2010, section 298.015, subdivision 1, is amended to read:
130.32 Subdivision 1.
Tax imposed. A person engaged in the business of mining shall pay
130.33to the state of Minnesota for distribution as provided in section
298.018 a net proceeds tax
131.1equal to two percent of the net proceeds from mining in Minnesota. The tax applies to all
131.2mineral and energy resources
new text begin ores, metals, and mineralsnew text end mined or
new text begin ,new text end extracted
new text begin , produced, new text end
131.3
new text begin or refinednew text end within the state of Minnesota except for sand, silica sand, gravel, building
131.4stone, crushed rock, limestone, granite, dimension granite, dimension stone, horticultural
131.5peat, clay, soil, iron ore, and taconite concentrates. The tax is in addition to all other
131.6taxes provided for by law.
131.7
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
131.8
new text begin December 31, 2010.new text end
131.9 Sec. 7. Minnesota Statutes 2010, section 298.015, subdivision 2, is amended to read:
131.10 Subd. 2.
Net proceeds. For purposes of this section, the term "net proceeds" means
131.11the gross proceeds from mining, as defined in section
298.016, less the deductions allowed
131.12in section
new text begin for purposes of determining taxable income under section 298.01, new text end
131.13
new text begin subdivision 3b, applied to the mining, production, processing, beneficiation, smelting, or new text end
131.14
new text begin refining of metal or mineral productsnew text end . No other credits or deductions shall apply to this tax
131.15except for those provided in section
.
131.16
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2012 and new text end
131.17
new text begin thereafter.new text end
131.18 Sec. 8. Minnesota Statutes 2010, section 298.016, subdivision 4, is amended to read:
131.19 Subd. 4.
Definitionsnew text begin Metal or mineral products; definitionnew text end . For the purposes of
131.20sections
and
new text begin this sectionnew text end , the terms defined in this subdivision have the
131.21meaning given them unless the context clearly indicates otherwise.
131.22(a) "metal or mineral products" means all those mineral and energy resources
new text begin ores, new text end
131.23
new text begin metals, and mineralsnew text end subject to the tax provided in section
298.015.
131.24(b) "Exploration" means activities designed and engaged in to ascertain the
131.25existence, location, extent, or quality of any deposit of metal or mineral products prior to
131.26the development of a mining site.
131.27(c) "Development" means activities designed and engaged in to prepare or develop
131.28a potential mining site for mining after the existence of metal or mineral products in
131.29commercially marketable quantities has been disclosed including, but not limited to,
131.30the clearing of forestation, the building of roads, removal of overburden, or the sinking
131.31of shafts.
132.1(d) "Research" means activities designed and engaged in to create new or improved
132.2methods of mining, producing, processing, beneficiating, smelting, or refining metal
132.3or mineral products.
132.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
132.5
new text begin December 31, 2010. new text end
132.6 Sec. 9. Minnesota Statutes 2010, section 298.225, subdivision 1, is amended to read:
132.7 Subdivision 1.
Guaranteed distribution. (a) The distribution of the taconite
132.8production tax as provided in section
298.28, subdivisions 3 to 5, 6, paragraph (b),
new text begin and new text end
132.97, and 8, shall equal the lesser of the following amounts:
132.10(1) the amount distributed pursuant to this section and section
298.28, with respect
132.11to 1983 production if the production for the year prior to the distribution year is no less
132.12than 42,000,000 taxable tons. If the production is less than 42,000,000 taxable tons, the
132.13amount of the distributions shall be reduced proportionately at the rate of two percent
132.14for each 1,000,000 tons, or part of 1,000,000 tons by which the production is less than
132.1542,000,000 tons; or
132.16(2)(i) for the distributions made pursuant to section
298.28, subdivisions 4,
132.17paragraphs (b)
and (c), and 6, paragraph (c), 31.2 percent of the amount distributed
132.18pursuant to this section and section
298.28, with respect to 1983 production;
132.19(ii) for the distributions made pursuant to section
298.28, subdivision 5, paragraphs
132.20(b) and (d), 75 percent of the amount distributed pursuant to this section and section
132.21298.28
, with respect to 1983 production.
132.22(b) The distribution of the taconite production tax as provided in section
298.28,
132.23subdivision 2
, shall equal the following amount:
132.24(1) if the production for the year prior to the distribution year is at least 42,000,000
132.25taxable tons, the amount distributed pursuant to this section and section
298.28 with
132.26respect to 1999 production; or
132.27(2) if the production for the year prior to the distribution year is less than 42,000,000
132.28taxable tons, the amount distributed pursuant to this section and section
298.28 with respect
132.29to 1999 production, reduced proportionately at the rate of two percent for each 1,000,000
132.30tons or part of 1,000,000 tons by which the production is less than 42,000,000 tons.
132.31
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for distributions in 2012 and new text end
132.32
new text begin thereafter.new text end
132.33 Sec. 10. Minnesota Statutes 2010, section 298.24, subdivision 1, is amended to read:
133.1 Subdivision 1.
Imposed; calculation. (a) For concentrate produced in 2001, 2002,
133.2and 2003
new text begin 2011 and 2012new text end , there is imposed upon taconite and iron sulphides, and upon the
133.3mining and quarrying thereof, and upon the production of iron ore concentrate therefrom,
133.4and upon the concentrate so produced,
new text begin and upon other iron-bearing material, new text end a tax of
133.5$2.103
new text begin $2.380new text end per gross ton of merchantable iron ore concentrate produced therefrom.
133.6For concentrates produced in 2005, the tax rate is the same rate imposed for concentrates
133.7produced in 2004. For concentrates produced in 2009 and subsequent years, the tax is also
133.8imposed upon other iron-bearing material.
133.9 (b) For concentrates produced in 2006
new text begin 2013 new text end and subsequent years, the tax rate shall
133.10be equal to the preceding year's tax rate plus an amount equal to the preceding year's tax
133.11rate multiplied by the percentage increase in the implicit price deflator from the fourth
133.12quarter of the second preceding year to the fourth quarter of the preceding year. "Implicit
133.13price deflator" means the implicit price deflator for the gross domestic product prepared by
133.14the Bureau of Economic Analysis of the United States Department of Commerce.
133.15 (c) An additional tax is imposed equal to three cents per gross ton of merchantable
133.16iron ore concentrate for each one percent that the iron content of the product exceeds 72
133.17percent, when dried at 212 degrees Fahrenheit.
133.18 (d) The tax on taconite and iron sulphides shall be imposed on the average of the
133.19production for the current year and the previous two years. The rate of the tax imposed
133.20will be the current year's tax rate. This clause shall not apply in the case of the closing
133.21of a taconite facility if the property taxes on the facility would be higher if this clause
133.22and section
298.25 were not applicable. The tax on other iron-bearing material shall be
133.23imposed on the current year production.
133.24 (e) If the tax or any part of the tax imposed by this subdivision is held to be
133.25unconstitutional, a tax of $2.103
new text begin $2.380new text end per gross ton of merchantable iron ore concentrate
133.26produced shall be imposed.
133.27 (f) Consistent with the intent of this subdivision to impose a tax based upon the
133.28weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly
133.29determine the weight of merchantable iron ore concentrate included in fluxed pellets by
133.30subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic
133.31flux additives included in the pellets from the weight of the pellets. For purposes of this
133.32paragraph, "fluxed pellets" are pellets produced in a process in which limestone, dolomite,
133.33olivine, or other basic flux additives are combined with merchantable iron ore concentrate.
133.34No subtraction from the weight of the pellets shall be allowed for binders, mineral and
133.35chemical additives other than basic flux additives, or moisture.
134.1 (g)(1) Notwithstanding any other provision of this subdivision, for the first two years
134.2of a plant's commercial production of direct reduced ore from ore mined in this state, no
134.3tax is imposed under this section. As used in this paragraph, "commercial production" is
134.4production of more than 50,000 tons of direct reduced ore in the current year or in any
134.5prior year, "noncommercial production" is production of 50,000 tons or less of direct
134.6reduced ore in any year, and "direct reduced ore" is ore that results in a product that has an
134.7iron content of at least 75 percent. For the third year of a plant's commercial production of
134.8direct reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate
134.9otherwise determined under this subdivision. For the fourth commercial production year,
134.10the rate is 50 percent of the rate otherwise determined under this subdivision; for the fifth
134.11commercial production year, the rate is 75 percent of the rate otherwise determined under
134.12this subdivision; and for all subsequent commercial production years, the full rate is
134.13imposed.
134.14 (2) Subject to clause (1), production of direct reduced ore in this state is subject to
134.15the tax imposed by this section, but if that production is not produced by a producer of
134.16taconite, iron sulfides, or other iron-bearing material, the production of taconite, iron
134.17sulfides, or other iron-bearing material, that is consumed in the production of direct
134.18reduced iron in this state is not subject to the tax imposed by this section on taconite,
134.19iron sulfides, or other iron-bearing material.
134.20 (3) Notwithstanding any other provision of this subdivision, no tax is imposed
134.21on direct reduced ore under this section during the facility's noncommercial production
134.22of direct reduced ore. The taconite or iron sulphides consumed in the noncommercial
134.23production of direct reduced ore is subject to the tax imposed by this section on taconite
134.24and iron sulphides. Three-year average production of direct reduced ore does not
134.25include production of direct reduced ore in any noncommercial year. Three-year average
134.26production for a direct reduced ore facility that has noncommercial production is the
134.27average of the commercial production of direct reduced ore for the current year and the
134.28previous two commercial years.
134.29 (4) This paragraph applies only to plants for which all environmental permits have
134.30been obtained and construction has begun before July 1, 2008.
134.31
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for production in 2011 and thereafter.new text end
134.32 Sec. 11. Minnesota Statutes 2010, section 298.28, subdivision 3, is amended to read:
134.33 Subd. 3.
Cities; towns. (a) 12.5
new text begin 12.2new text end cents per taxable ton, less any amount
134.34distributed under subdivision 8, and paragraph (b), must be allocated to the taconite
134.35municipal aid account to be distributed as provided in section
298.282.
135.1 (b) An amount must be allocated to towns or cities that is annually certified by
135.2the county auditor of a county containing a taconite tax relief area as defined in section
135.3273.134, paragraph (b)
, within which there is (1) an organized township if, as of January
135.42, 1982, more than 75 percent of the assessed valuation of the township consists of iron
135.5ore or (2) a city if, as of January 2, 1980, more than 75 percent of the assessed valuation
135.6of the city consists of iron ore.
135.7 (c) The amount allocated under paragraph (b) will be the portion of a township's or
135.8city's certified levy equal to the proportion of (1) the difference between 50 percent of
135.9January 2, 1982, assessed value in the case of a township and 50 percent of the January 2,
135.101980, assessed value in the case of a city and its current assessed value to (2) the sum of
135.11its current assessed value plus the difference determined in (1), provided that the amount
135.12distributed shall not exceed $55 per capita in the case of a township or $75 per capita in
135.13the case of a city. For purposes of this limitation, population will be determined according
135.14to the 1980 decennial census conducted by the United States Bureau of the Census. If the
135.15current assessed value of the township exceeds 50 percent of the township's January 2,
135.161982, assessed value, or if the current assessed value of the city exceeds 50 percent of the
135.17city's January 2, 1980, assessed value, this paragraph shall not apply. For purposes of this
135.18paragraph, "assessed value," when used in reference to years other than 1980 or 1982,
135.19means the appropriate net tax capacities multiplied by 10.2.
135.20 (d) In addition to other distributions under this subdivision, three cents per taxable
135.21ton for distributions in 2009 must be allocated for distribution to towns that are entirely
135.22located within the taconite tax relief area defined in section
273.134, paragraph (b).
135.23For distribution in 2010 and subsequent years, the three-cent amount must be annually
135.24increased in the same proportion as the increase in the implicit price deflator as provided
135.25in section
298.24, subdivision 1. The amount available under this paragraph will be
135.26distributed to eligible towns on a per capita basis, provided that no town may receive more
135.27than $50,000 in any year under this paragraph. Any amount of the distribution that exceeds
135.28the $50,000 limitation for a town under this paragraph must be redistributed on a per
135.29capita basis among the other eligible towns, to whose distributions do not exceed $50,000.
135.30 Sec. 12.
new text begin REPEALER.new text end
135.31
new text begin (a)new text end new text begin Minnesota Statutes 2010, section 298.28, subdivisions 8 and 9c,new text end new text begin are repealed.new text end
135.32
new text begin (b)new text end new text begin Minnesota Statutes 2010, section 298.285,new text end new text begin is repealed.new text end
135.33
new text begin (c)new text end new text begin Minnesota Statutes 2010, section 298.017,new text end new text begin is repealed.new text end
136.1
new text begin EFFECTIVE DATE.new text end new text begin Paragraph (a) is effective for distributions in 2012 and new text end
136.2
new text begin thereafter of taxes on production in 2011 and thereafter. Paragraph (b) is effective June 30, new text end
136.3
new text begin 2011. Paragraph (c) is effective for taxable years beginning after December 31, 2010.new text end
136.4
ARTICLE 9
136.5
MISCELLANEOUS
136.6 Section 1. Minnesota Statutes 2010, section 270C.13, subdivision 1, is amended to read:
136.7 Subdivision 1.
Biennial report. The commissioner shall report to the legislature
136.8by March 1 of each odd-numbered year on the overall incidence of the income tax,
136.9sales and excise taxes, and property tax. The report shall present information on the
136.10distribution of the tax burden as follows: (1) for the overall income distribution, using
136.11a systemwide incidence measure such as the Suits index or other appropriate measures
136.12of equality and inequality; (2) by income classes, including at a minimum deciles of the
136.13income distribution; and (3) by other appropriate taxpayer characteristics.
new text begin The report new text end
136.14
new text begin must also include information on the distribution of the burden of federal taxes borne new text end
136.15
new text begin by Minnesota residents.new text end
136.16
new text begin EFFECTIVE DATE.new text end new text begin This section is effective beginning with the report due in new text end
136.17
new text begin March 2013.new text end
136.18 Sec. 2.
new text begin BUDGET RESERVE REDUCTION.new text end
136.19
new text begin On July 1, 2011, the commissioner of management and budget shall cancel new text end
136.20
new text begin $8,665,000 of the balance in the budget reserve account in Minnesota Statutes, section new text end
136.21
new text begin 16A.152, to the general fund.new text end
136.22 Sec. 3.
new text begin CASH FLOW ACCOUNT REDUCTION.new text end
136.23
new text begin On July 1, 2011, the commissioner of management and budget shall cancel new text end
136.24
new text begin $166,000,000 of the balance in the cash flow account in Minnesota Statutes, section new text end
136.25
new text begin 16A.152, to the general fund.new text end
136.26
Sec. 4. new text begin TRANSFERnew text end
136.27
new text begin Prior to June 30, 2012, the commissioner of iron range resources shall transfer new text end
136.28
new text begin $60,000,000 from the Douglas J. Johnson economic protection trust fund to the general new text end
136.29
new text begin fund. This is a onetime transfer.new text end "
136.30Delete the title and insert:
136.31"A bill for an act
136.32relating to the financing of state and local government; making changes to
136.33individual income, corporate franchise, estate, property, aids, credits, payments,
137.1refunds, sales and use, tax increment financing, minerals, local, and other
137.2taxes and tax-related provisions; authorizing border city development zone
137.3powers and local taxes; extending levy limits; repealing sustainable forest
137.4resource management incentive; authorizing grants to local governments for
137.5cooperation and consolidation; providing a science and technology program;
137.6conforming to changes made to the Internal Revenue Code; permitting certain
137.7appeals; modifying provision allowing for a reciprocity agreement with state of
137.8Wisconsin; setting the levels of the cash flow account and the budget reserve
137.9account; suspending certain maintenance of effort requirements; requiring
137.10studies; requiring reports; appropriating money;amending Minnesota Statutes
137.112010, sections 88.49, subdivisions 5, 9a; 97A.061, subdivisions 1, 3; 126C.01,
137.12subdivision 3; 270A.03, subdivision 7; 270B.12, by adding a subdivision;
137.13270C.13, subdivision 1; 272.02, subdivision 39, by adding a subdivision;
137.14273.111, by adding a subdivision; 273.114, subdivision 2, as amended; 273.121,
137.15subdivision 1; 273.13, subdivisions 23, 25, 34, by adding a subdivision;
137.16273.1384, subdivisions 3, 4; 273.1393; 273.1398, subdivision 3; 274.01,
137.17subdivision 1; 275.025, subdivisions 1, 3, 4; 275.70, subdivision 5; 275.71,
137.18subdivisions 2, 4, 5; 276.04, subdivision 2; 289A.02, subdivision 7, as amended;
137.19289A.20, subdivision 4; 289A.50, subdivision 1; 290.01, subdivisions 6, 19, as
137.20amended, 19a, as amended, 19b, 19c, as amended, 31, as amended; 290.05,
137.21subdivision 1; 290.06, subdivision 2c; 290.0674, subdivision 1; 290.068,
137.22subdivision 1; 290.081; 290.091, subdivision 2; 290.191, subdivisions 2, 3;
137.23290A.03, subdivisions 11, 13, 15, as amended; 290A.04, subdivisions 2, 2a,
137.244, by adding a subdivision; 291.005, subdivision 1; 291.03, subdivision 1, by
137.25adding subdivisions; 297A.61, subdivision 3; 297A.62, by adding a subdivision;
137.26297A.63, by adding a subdivision; 297A.668, subdivision 7, by adding a
137.27subdivision; 297A.68, by adding a subdivision; 297A.70, subdivisions 1, 2, 3, 8;
137.28297A.75, subdivisions 1, 2, 3; 297A.82, subdivision 4; 297A.99, subdivisions
137.291, 3; 298.001, by adding a subdivision; 298.01, subdivisions 3, 3a; 298.015,
137.30subdivisions 1, 2; 298.016, subdivision 4; 298.225, subdivision 1; 298.24,
137.31subdivision 1; 298.28, subdivision 3; 469.176, subdivisions 4c, 4m; 469.1763,
137.32subdivision 2; 473.757, subdivision 11; 477A.011, subdivision 20, by adding
137.33a subdivision; 477A.0124, by adding a subdivision; 477A.013, subdivisions
137.348, 9, by adding a subdivision; 477A.03; 477A.11, subdivision 1; 477A.12,
137.35subdivision 1; 477A.14, subdivision 1; 477A.17; Laws 1996, chapter 471, article
137.362, section 29, subdivision 1, as amended; Laws 1998, chapter 389, article 8,
137.37section 43, subdivisions 3, as amended, 4, as amended, 5, as amended; Laws
137.382008, chapter 366, article 7, section 19, subdivision 3; Laws 2010, chapter 389,
137.39article 5, section 6, subdivision 1; article 7, section 22; proposing coding for
137.40new law in Minnesota Statutes, chapters 116W; 275; 373; repealing Minnesota
137.41Statutes 2010, sections 10A.322, subdivision 4; 13.4967, subdivisions 2, 2b;
137.42273.1384, subdivisions 1, 6; 275.025; 275.295; 289A.60, subdivision 31; 290.06,
137.43subdivision 23; 290C.01; 290C.02; 290C.03; 290C.04; 290C.05; 290C.055;
137.44290C.06; 290C.07; 290C.08; 290C.09; 290C.10; 290C.11; 290C.12; 290C.13;
137.45298.017; 298.28, subdivisions 8, 9c; 298.285; 477A.145."
138.1
We request the adoption of this report and repassage of the bill.
138.2
House Conferees:
138.3
.....
.....
138.4
Greg Davids
Sarah Anderson
138.5
.....
.....
138.6
Jenifer Loon
Linda Runbeck
138.7
.....
138.8
Ann Lenczewski
138.9
Senate Conferees:
138.10
.....
.....
138.11
Julianne E. Ortman
David H. Senjem
138.12
.....
.....
138.13
Warren Limmer
Roger C. Chamberlain
138.14
.....
138.15
Julie A. Rosen
