<a id="pl.1.4"></a><var>1.4</var>changes to individual income, corporate franchise, property, aids, credits, <br/>
<a id="pl.1.5"></a><var>1.5</var>payments, refunds, sales and use, tax increment financing, aggregate material, <br/>
<a id="pl.1.6"></a><var>1.6</var>minerals, local, and other taxes and tax-related provisions; making changes to the <br/>
<a id="pl.1.7"></a><var>1.7</var>green acres and rural preserve programs; authorizing border city development <br/>
<a id="pl.1.8"></a><var>1.8</var>zone powers and local taxes; extending levy limits; modifying regional <br/>
<a id="pl.1.9"></a><var>1.9</var>railroad authority provisions; repealing sustainable forest resource management <br/>
<a id="pl.1.10"></a><var>1.10</var>incentive; authorizing grants to local governments for cooperation, consolidation, <br/>
<a id="pl.1.11"></a><var>1.11</var>and service innovation; providing a science and technology program; reducing <br/>
<a id="pl.1.12"></a><var>1.12</var>certain income rates; allowing capital equipment exemption at time of purchase; <br/>
<a id="pl.1.13"></a><var>1.13</var>directing commissioner of revenue to negotiate a reciprocity agreement with <br/>
<a id="pl.1.14"></a><var>1.14</var>state of Wisconsin and permitting its termination only by law; requiring studies; <br/>
<a id="pl.1.15"></a><var>1.15</var>requiring reports; canceling amounts in the cash flow account; appropriating <br/>
<a id="pl.1.16"></a><var>1.16</var>money;amending Minnesota Statutes 2010, sections 97A.061, subdivisions <br/>
<a id="pl.1.17"></a><var>1.17</var>1, 3; 126C.01, subdivision 3; 270A.03, subdivision 7; 270B.12, by adding a <br/>
<a id="pl.1.18"></a><var>1.18</var>subdivision; 270C.13, subdivision 1; 272.02, by adding a subdivision; 273.111, <br/>
<a id="pl.1.19"></a><var>1.19</var>subdivision 9, by adding a subdivision; 273.114, subdivisions 2, 5, 6; 273.121, <br/>
<a id="pl.1.20"></a><var>1.20</var>subdivision 1; 273.13, subdivisions 21b, 25, 34; 273.1384, subdivisions 1, 3, <br/>
<a id="pl.1.21"></a><var>1.21</var>4; 273.1393; 273.1398, subdivision 3; 275.025, subdivisions 1, 3, 4; 275.066; <br/>
<a id="pl.1.22"></a><var>1.22</var>275.08, subdivisions 1a, 1d; 275.70, subdivision 5; 275.71, subdivisions 2, <br/>
<a id="pl.1.23"></a><var>1.23</var>4, 5; 276.04, subdivision 2; 279.01, subdivision 1; 289A.20, subdivision 4; <br/>
<a id="pl.1.24"></a><var>1.24</var>289A.50, subdivision 1; 290.01, subdivisions 6, 19b; 290.06, subdivision 2c; <br/>
<a id="pl.1.25"></a><var>1.25</var>290.068, subdivision 1; 290.081; 290.091, subdivision 2; 290A.03, subdivisions <br/>
<a id="pl.1.26"></a><var>1.26</var>11, 13; 297A.61, subdivision 3; 297A.62, by adding a subdivision; 297A.63, <br/>
<a id="pl.1.27"></a><var>1.27</var>by adding a subdivision; 297A.668, subdivision 7, by adding a subdivision; <br/>
<a id="pl.1.28"></a><var>1.28</var>297A.68, subdivision 5; 297A.70, subdivision 3; 297A.75; 297A.99, subdivision <br/>
<a id="pl.1.29"></a><var>1.29</var>1; 298.01, subdivision 3; 298.015, subdivision 1; 298.018, subdivision 1; <br/>
<a id="pl.1.30"></a><var>1.30</var>298.28, subdivision 3; 298.75, by adding a subdivision; 398A.04, subdivision <br/>
<a id="pl.1.31"></a><var>1.31</var>8; 398A.07, subdivision 2; 469.1763, subdivision 2; 473.757, subdivisions 2, <br/>
<a id="pl.1.32"></a><var>1.32</var>11; 477A.011, by adding a subdivision; 477A.0124, by adding a subdivision; <br/>
<a id="pl.1.33"></a><var>1.33</var>477A.013, subdivisions 8, 9, by adding a subdivision; 477A.03; 477A.11, <br/>
<a id="pl.1.34"></a><var>1.34</var>subdivision 1; 477A.12, subdivision 1; 477A.14, subdivision 1; 477A.17; Laws <br/>
<a id="pl.1.35"></a><var>1.35</var>1996, chapter 471, article 2, section 29, subdivision 1, as amended; Laws 1998, <br/>
<a id="pl.1.36"></a><var>1.36</var>chapter 389, article 8, section 43, subdivisions 3, as amended, 4, as amended, <br/>
<a id="pl.1.37"></a><var>1.37</var>5, as amended; Laws 2008, chapter 366, article 7, section 19, subdivision 3; <br/>
<a id="pl.1.38"></a><var>1.38</var>Laws 2010, chapter 389, article 7, section 22; proposing coding for new law in <br/>
<a id="pl.1.39"></a><var>1.39</var>Minnesota Statutes, chapters 116W; 275; 373; repealing Minnesota Statutes <br/>
<a id="pl.1.40"></a><var>1.40</var>2010, sections 10A.322, subdivision 4; 13.4967, subdivision 2; 273.114, <br/>
<a id="pl.1.41"></a><var>1.41</var>subdivision 1; 273.1384, subdivision 6; 279.01, subdivision 4; 289A.60, <br/>
<a id="pl.1.42"></a><var>1.42</var>subdivision 31; 290.06, subdivision 23; 290C.01; 290C.02; 290C.03; 290C.04; <br/>
<a id="pl.2.1"></a><var>2.1</var>290C.05; 290C.055; 290C.06; 290C.07; 290C.08; 290C.09; 290C.10; 290C.11; <br/>
<a id="pl.2.2"></a><var>2.2</var>290C.12; 290C.13; 477A.145.<br/>
<a id="pl.2.3"></a><var>2.3</var>May 16, 2011<br/>
<a id="pl.2.4"></a><var>2.4</var>The Honorable Kurt Zellers<br/>
<a id="pl.2.5"></a><var>2.5</var>Speaker of the House of Representatives<br/>
<a id="pl.2.6"></a><var>2.6</var>The Honorable Michelle L. Fischbach<br/>
<a id="pl.2.7"></a><var>2.7</var>President of the Senate<br/>
<a id="pl.2.8"></a><var>2.8</var>We, the undersigned conferees for H. F. No. 42 report that we have agreed upon the <br/>
<a id="pl.2.9"></a><var>2.9</var>items in dispute and recommend as follows:<br/>
<a id="pl.2.10"></a><var>2.10</var>That the Senate recede from its amendments and that H. F. No. 42 be further <br/>
<a id="pl.2.11"></a><var>2.11</var>amended as follows:<br/>
<a id="pl.2.12"></a><var>2.12</var>Delete everything after the enacting clause and insert:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.2.15"></a><var>2.15</var>    Section 1. Minnesota Statutes 2010, section 270B.12, is amended by adding a <br/>
<a id="pl.2.16"></a><var>2.16</var>subdivision to read:<br/>
<a id="pl.2.17"></a><var>2.17</var>    Subd. 14. <b>Wisconsin secretary of revenue; income tax reciprocity benchmark </b><br/>
<a id="pl.2.18"></a><var>2.18</var><b>study.</b> The commissioner may disclose return information to the secretary of revenue <br/>
<a id="pl.2.19"></a><var>2.19</var>of the state of Wisconsin for the purpose of conducting a joint individual income tax <br/>
<a id="pl.2.20"></a><var>2.20</var>reciprocity study.<br/>
<a id="pl.2.21"></a><var>2.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.2.22"></a><var>2.22</var>    Sec. 2. Minnesota Statutes 2010, section 290.01, subdivision 19b, is amended to read:<br/>
<a id="pl.2.23"></a><var>2.23</var>    Subd. 19b. <b>Subtractions from federal taxable income.</b> For individuals, estates, <br/>
<a id="pl.2.24"></a><var>2.24</var>and trusts, there shall be subtracted from federal taxable income:<br/>
<a id="pl.2.25"></a><var>2.25</var>    (1) net interest income on obligations of any authority, commission, or <br/>
<a id="pl.2.26"></a><var>2.26</var>instrumentality of the United States to the extent includable in taxable income for federal <br/>
<a id="pl.2.27"></a><var>2.27</var>income tax purposes but exempt from state income tax under the laws of the United States;<br/>
<a id="pl.2.28"></a><var>2.28</var>    (2) if included in federal taxable income, the amount of any overpayment of income <br/>
<a id="pl.2.29"></a><var>2.29</var>tax to Minnesota or to any other state, for any previous taxable year, whether the amount <br/>
<a id="pl.2.30"></a><var>2.30</var>is received as a refund or as a credit to another taxable year's income tax liability;<br/>
<a id="pl.2.31"></a><var>2.31</var>    (3) the amount paid to others, less the amount used to claim the credit allowed under <br/>
<a id="pl.2.32"></a><var>2.32</var>section 
         <statute_ref>290.0674</statute_ref>, not to exceed $1,625 for each qualifying child in grades kindergarten <br/>
<a id="pl.2.33"></a><var>2.33</var>to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and <br/>
<a id="pl.2.34"></a><var>2.34</var>transportation of each qualifying child in attending an elementary or secondary school <br/>
<a id="pl.2.35"></a><var>2.35</var>situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a <br/>
<a id="pl.3.1"></a><var>3.1</var>resident of this state may legally fulfill the state's compulsory attendance laws, which <br/>
<a id="pl.3.2"></a><var>3.2</var>is not operated for profit, and which adheres to the provisions of the Civil Rights Act <br/>
<a id="pl.3.3"></a><var>3.3</var>of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or <br/>
<a id="pl.3.4"></a><var>3.4</var>tuition as defined in section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (1). As used in this clause, <br/>
<a id="pl.3.5"></a><var>3.5</var>"textbooks" includes books and other instructional materials and equipment purchased <br/>
<a id="pl.3.6"></a><var>3.6</var>or leased for use in elementary and secondary schools in teaching only those subjects <br/>
<a id="pl.3.7"></a><var>3.7</var>legally and commonly taught in public elementary and secondary schools in this state. <br/>
<a id="pl.3.8"></a><var>3.8</var>Equipment expenses qualifying for deduction includes expenses as defined and limited in <br/>
<a id="pl.3.9"></a><var>3.9</var>section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (3). "Textbooks" does not include instructional <br/>
<a id="pl.3.10"></a><var>3.10</var>books and materials used in the teaching of religious tenets, doctrines, or worship, the <br/>
<a id="pl.3.11"></a><var>3.11</var>purpose of which is to instill such tenets, doctrines, or worship, nor does it include books <br/>
<a id="pl.3.12"></a><var>3.12</var>or materials for, or transportation to, extracurricular activities including sporting events, <br/>
<a id="pl.3.13"></a><var>3.13</var>musical or dramatic events, speech activities, driver's education, or similar programs. No <br/>
<a id="pl.3.14"></a><var>3.14</var>deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or <br/>
<a id="pl.3.15"></a><var>3.15</var>the qualifying child's vehicle to provide such transportation for a qualifying child. For <br/>
<a id="pl.3.16"></a><var>3.16</var>purposes of the subtraction provided by this clause, "qualifying child" has the meaning <br/>
<a id="pl.3.17"></a><var>3.17</var>given in section 32(c)(3) of the Internal Revenue Code;<br/>
<a id="pl.3.18"></a><var>3.18</var>    (4) income as provided under section 
         <statute_ref>290.0802</statute_ref>;<br/>
<a id="pl.3.19"></a><var>3.19</var>    (5) to the extent included in federal adjusted gross income, income realized on <br/>
<a id="pl.3.20"></a><var>3.20</var>disposition of property exempt from tax under section 
         <statute_ref>290.491</statute_ref>;<br/>
<a id="pl.3.21"></a><var>3.21</var>    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) <br/>
<a id="pl.3.22"></a><var>3.22</var>of the Internal Revenue Code in determining federal taxable income by an individual <br/>
<a id="pl.3.23"></a><var>3.23</var>who does not itemize deductions for federal income tax purposes for the taxable year, an <br/>
<a id="pl.3.24"></a><var>3.24</var>amount equal to 50 percent of the excess of charitable contributions over $500 allowable <br/>
<a id="pl.3.25"></a><var>3.25</var>as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, <br/>
<a id="pl.3.26"></a><var>3.26</var>under the provisions of Public Law 109-1 and Public Law 111-126;<br/>
<a id="pl.3.27"></a><var>3.27</var>    (7) for individuals who are allowed a federal foreign tax credit for taxes that do not <br/>
<a id="pl.3.28"></a><var>3.28</var>qualify for a credit under section 
         <statute_ref>290.06, subdivision 22</statute_ref>, an amount equal to the carryover <br/>
<a id="pl.3.29"></a><var>3.29</var>of subnational foreign taxes for the taxable year, but not to exceed the total subnational <br/>
<a id="pl.3.30"></a><var>3.30</var>foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, <br/>
<a id="pl.3.31"></a><var>3.31</var>"federal foreign tax credit" means the credit allowed under section 27 of the Internal <br/>
<a id="pl.3.32"></a><var>3.32</var>Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed <br/>
<a id="pl.3.33"></a><var>3.33</var>under section 904(c) of the Internal Revenue Code minus national level foreign taxes to <br/>
<a id="pl.3.34"></a><var>3.34</var>the extent they exceed the federal foreign tax credit;<br/>
<a id="pl.3.35"></a><var>3.35</var>    (8) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.3.36"></a><var>3.36</var>addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case <br/>
<a id="pl.4.1"></a><var>4.1</var>of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth <br/>
<a id="pl.4.2"></a><var>4.2</var>of the delayed depreciation. For purposes of this clause, "delayed depreciation" means <br/>
<a id="pl.4.3"></a><var>4.3</var>the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or <br/>
<a id="pl.4.4"></a><var>4.4</var>subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the <br/>
<a id="pl.4.5"></a><var>4.5</var>positive value of any net operating loss under section 172 of the Internal Revenue Code <br/>
<a id="pl.4.6"></a><var>4.6</var>generated for the tax year of the addition. The resulting delayed depreciation cannot be <br/>
<a id="pl.4.7"></a><var>4.7</var>less than zero;<br/>
<a id="pl.4.8"></a><var>4.8</var>    (9) job opportunity building zone income as provided under section 
         <statute_ref>469.316</statute_ref>;<br/>
<a id="pl.4.9"></a><var>4.9</var>    (10) to the extent included in federal taxable income, the amount of compensation <br/>
<a id="pl.4.10"></a><var>4.10</var>paid to members of the Minnesota National Guard or other reserve components of the <br/>
<a id="pl.4.11"></a><var>4.11</var>United States military for active service performed in Minnesota, excluding compensation <br/>
<a id="pl.4.12"></a><var>4.12</var>for services performed under the Active Guard Reserve (AGR) program. For purposes of <br/>
<a id="pl.4.13"></a><var>4.13</var>this clause, "active service" means (i) state active service as defined in section 
         <statute_ref>190.05, <br/>
<a id="pl.4.14"></a><var>4.14</var>subdivision 5a
         </statute_ref>, clause (1); (ii) federally funded state active service as defined in section <br/>
<statute_ref><a id="pl.4.15"></a><var>4.15</var>190.05, subdivision 5b
         </statute_ref>; or (iii) federal active service as defined in section 
         <statute_ref>190.05, <br/>
<a id="pl.4.16"></a><var>4.16</var>subdivision 5c
         </statute_ref>, but "active service" excludes service performed in accordance with section <br/>
<statute_ref><a id="pl.4.17"></a><var>4.17</var>190.08, subdivision 3
         </statute_ref>;<br/>
<a id="pl.4.18"></a><var>4.18</var>    (11) to the extent included in federal taxable income, the amount of compensation <br/>
<a id="pl.4.19"></a><var>4.19</var>paid to Minnesota residents who are members of the armed forces of the United States or <br/>
<a id="pl.4.20"></a><var>4.20</var>United Nations for active duty performed outside Minnesota under United States Code, <br/>
<a id="pl.4.21"></a><var>4.21</var>title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of <br/>
<a id="pl.4.22"></a><var>4.22</var>the United Nations;<br/>
<a id="pl.4.23"></a><var>4.23</var>    (12) an amount, not to exceed $10,000, equal to qualified expenses related to a <br/>
<a id="pl.4.24"></a><var>4.24</var>qualified donor's donation, while living, of one or more of the qualified donor's organs <br/>
<a id="pl.4.25"></a><var>4.25</var>to another person for human organ transplantation. For purposes of this clause, "organ" <br/>
<a id="pl.4.26"></a><var>4.26</var>means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; <br/>
<a id="pl.4.27"></a><var>4.27</var>"human organ transplantation" means the medical procedure by which transfer of a human <br/>
<a id="pl.4.28"></a><var>4.28</var>organ is made from the body of one person to the body of another person; "qualified <br/>
<a id="pl.4.29"></a><var>4.29</var>expenses" means unreimbursed expenses for both the individual and the qualified donor <br/>
<a id="pl.4.30"></a><var>4.30</var>for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses <br/>
<a id="pl.4.31"></a><var>4.31</var>may be subtracted under this clause only once; and "qualified donor" means the individual <br/>
<a id="pl.4.32"></a><var>4.32</var>or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An <br/>
<a id="pl.4.33"></a><var>4.33</var>individual may claim the subtraction in this clause for each instance of organ donation for <br/>
<a id="pl.4.34"></a><var>4.34</var>transplantation during the taxable year in which the qualified expenses occur;<br/>
<a id="pl.4.35"></a><var>4.35</var>    (13) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.4.36"></a><var>4.36</var>addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a <br/>
<a id="pl.5.1"></a><var>5.1</var>shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the <br/>
<a id="pl.5.2"></a><var>5.2</var>addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the <br/>
<a id="pl.5.3"></a><var>5.3</var>case of a shareholder of a corporation that is an S corporation, minus the positive value of <br/>
<a id="pl.5.4"></a><var>5.4</var>any net operating loss under section 172 of the Internal Revenue Code generated for the <br/>
<a id="pl.5.5"></a><var>5.5</var>tax year of the addition. If the net operating loss exceeds the addition for the tax year, a <br/>
<a id="pl.5.6"></a><var>5.6</var>subtraction is not allowed under this clause;<br/>
<a id="pl.5.7"></a><var>5.7</var>    (14) to the extent included in federal taxable income, compensation paid to a service <br/>
<a id="pl.5.8"></a><var>5.8</var>member as defined in United States Code, title 10, section 101(a)(5), for military service <br/>
<a id="pl.5.9"></a><var>5.9</var>as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2);<br/>
<a id="pl.5.10"></a><var>5.10</var>    (15) international economic development zone income as provided under section <br/>
<statute_ref><a id="pl.5.11"></a><var>5.11</var>469.325
         </statute_ref>;<br/>
<a id="pl.5.12"></a><var>5.12</var>    (16) to the extent included in federal taxable income, the amount of national service <br/>
<a id="pl.5.13"></a><var>5.13</var>educational awards received from the National Service Trust under United States Code, <br/>
<a id="pl.5.14"></a><var>5.14</var>title 42, sections 12601 to 12604, for service in an approved Americorps National Service <br/>
<a id="pl.5.15"></a><var>5.15</var>program; and<br/>
<a id="pl.5.16"></a><var>5.16</var>(17) to the extent included in federal taxable income, discharge of indebtedness <br/>
<a id="pl.5.17"></a><var>5.17</var>income resulting from reacquisition of business indebtedness included in federal taxable <br/>
<a id="pl.5.18"></a><var>5.18</var>income under section 108(i) of the Internal Revenue Code. This subtraction applies only <br/>
<a id="pl.5.19"></a><var>5.19</var>to the extent that the income was included in net income in a prior year as a result of the <br/>
<a id="pl.5.20"></a><var>5.20</var>addition under section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (16).;<br/>
<a id="pl.5.21"></a><var>5.21</var>(18) to the extent not deducted in computing federal taxable income, charitable <br/>
<a id="pl.5.22"></a><var>5.22</var>contributions of food inventory as determined under the provisions of section 170(e)(3)(C) <br/>
<a id="pl.5.23"></a><var>5.23</var>of the Internal Revenue Code, determined without regard to the termination date under <br/>
<a id="pl.5.24"></a><var>5.24</var>section 170(e)(3)(C)(iv); and<br/>
<a id="pl.5.25"></a><var>5.25</var>(19) to the extent included in federal taxable income, 55 percent of compensation <br/>
<a id="pl.5.26"></a><var>5.26</var>received from a pension or other retirement pay from the federal government for service <br/>
<a id="pl.5.27"></a><var>5.27</var>in the military, as computed under United States Code, title 10, sections 1401 to 1414, <br/>
<a id="pl.5.28"></a><var>5.28</var>1447 to 1455, and 12733.<br/>
<a id="pl.5.29"></a><var>5.29</var><b>EFFECTIVE DATE.</b>Clause (18) is effective for taxable years beginning after <br/>
<a id="pl.5.30"></a><var>5.30</var>December 31, 2010. Clause (19) is effective for taxable years beginning after December <br/>
<a id="pl.5.31"></a><var>5.31</var>31, 2012.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.5.32"></a><var>5.32</var>    Sec. 3. Minnesota Statutes 2010, section 290.06, subdivision 2c, is amended to read:<br/>
<a id="pl.5.33"></a><var>5.33</var>    Subd. 2c. <b>Schedules of rates for individuals, estates, and trusts.</b> (a) The income <br/>
<a id="pl.5.34"></a><var>5.34</var>taxes imposed by this chapter upon married individuals filing joint returns and surviving <br/>
<a id="pl.6.1"></a><var>6.1</var>spouses as defined in section 2(a) of the Internal Revenue Code must be computed by <br/>
<a id="pl.6.2"></a><var>6.2</var>applying to their taxable net income the following schedule of rates:<br/>
<a id="pl.6.3"></a><var>6.3</var>    (1) On the first $25,680, 5.35 percent;<br/>
<a id="pl.6.4"></a><var>6.4</var>    (2) On all over $25,680, but not over $102,030, 7.05 percent;<br/>
<a id="pl.6.5"></a><var>6.5</var>    (3) On all over $102,030, 7.85 percent.<br/>
<a id="pl.6.6"></a><var>6.6</var>    Married individuals filing separate returns, estates, and trusts must compute their <br/>
<a id="pl.6.7"></a><var>6.7</var>income tax by applying the above rates to their taxable income, except that the income <br/>
<a id="pl.6.8"></a><var>6.8</var>brackets will be one-half of the above amounts.<br/>
<a id="pl.6.9"></a><var>6.9</var>    (b) The income taxes imposed by this chapter upon unmarried individuals must be <br/>
<a id="pl.6.10"></a><var>6.10</var>computed by applying to taxable net income the following schedule of rates:<br/>
<a id="pl.6.11"></a><var>6.11</var>    (1) On the first $17,570, 5.35 percent;<br/>
<a id="pl.6.12"></a><var>6.12</var>    (2) On all over $17,570, but not over $57,710, 7.05 percent;<br/>
<a id="pl.6.13"></a><var>6.13</var>    (3) On all over $57,710, 7.85 percent.<br/>
<a id="pl.6.14"></a><var>6.14</var>    (c) The income taxes imposed by this chapter upon unmarried individuals qualifying <br/>
<a id="pl.6.15"></a><var>6.15</var>as a head of household as defined in section 2(b) of the Internal Revenue Code must be <br/>
<a id="pl.6.16"></a><var>6.16</var>computed by applying to taxable net income the following schedule of rates:<br/>
<a id="pl.6.17"></a><var>6.17</var>    (1) On the first $21,630, 5.35 percent;<br/>
<a id="pl.6.18"></a><var>6.18</var>    (2) On all over $21,630, but not over $86,910, 7.05 percent;<br/>
<a id="pl.6.19"></a><var>6.19</var>    (3) On all over $86,910, 7.85 percent.<br/>
<a id="pl.6.20"></a><var>6.20</var>    (d) In lieu of a tax computed according to the rates set forth in this subdivision, the <br/>
<a id="pl.6.21"></a><var>6.21</var>tax of any individual taxpayer whose taxable net income for the taxable year is less than <br/>
<a id="pl.6.22"></a><var>6.22</var>an amount determined by the commissioner must be computed in accordance with tables <br/>
<a id="pl.6.23"></a><var>6.23</var>prepared and issued by the commissioner of revenue based on income brackets of not <br/>
<a id="pl.6.24"></a><var>6.24</var>more than $100. The amount of tax for each bracket shall be computed at the rates set <br/>
<a id="pl.6.25"></a><var>6.25</var>forth in this subdivision, provided that the commissioner may disregard a fractional part of <br/>
<a id="pl.6.26"></a><var>6.26</var>a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.<br/>
<a id="pl.6.27"></a><var>6.27</var>    (e) An individual who is not a Minnesota resident for the entire year must compute <br/>
<a id="pl.6.28"></a><var>6.28</var>the individual's Minnesota income tax as provided in this subdivision. After the <br/>
<a id="pl.6.29"></a><var>6.29</var>application of the nonrefundable credits provided in this chapter, the tax liability must <br/>
<a id="pl.6.30"></a><var>6.30</var>then be multiplied by a fraction in which:<br/>
<a id="pl.6.31"></a><var>6.31</var>    (1) the numerator is the individual's Minnesota source federal adjusted gross income <br/>
<a id="pl.6.32"></a><var>6.32</var>as defined in section 62 of the Internal Revenue Code and increased by the additions <br/>
<a id="pl.6.33"></a><var>6.33</var>required under section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clauses (1), (5), (6), (7), (8), (9), (12), <br/>
<a id="pl.6.34"></a><var>6.34</var>(13), (16), and (17), and reduced by the Minnesota assignable portion of the subtraction <br/>
<a id="pl.6.35"></a><var>6.35</var>for United States government interest under section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clause (1), <br/>
<a id="pl.6.36"></a><var>6.36</var>and the subtractions under section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clauses (8), (9), (13), (14), <br/>
<a id="pl.7.1"></a><var>7.1</var>(15), and (17), (18), and (19), after applying the allocation and assignability provisions of <br/>
<a id="pl.7.2"></a><var>7.2</var>section 
         <statute_ref>290.081</statute_ref>, clause (a), or 
         <statute_ref>290.17</statute_ref>; and<br/>
<a id="pl.7.3"></a><var>7.3</var>    (2) the denominator is the individual's federal adjusted gross income as defined in <br/>
<a id="pl.7.4"></a><var>7.4</var>section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in <br/>
<a id="pl.7.5"></a><var>7.5</var>section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clauses (1), (5), (6), (7), (8), (9), (12), (13), (16), and (17), <br/>
<a id="pl.7.6"></a><var>7.6</var>and reduced by the amounts specified in section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clauses (1), (8), <br/>
<a id="pl.7.7"></a><var>7.7</var>(9), (13), (14), (15), and (17), (18), and (19).<br/>
<a id="pl.7.8"></a><var>7.8</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.7.9"></a><var>7.9</var>December 31, 2010, except that the new references to Minnesota Statutes, section 290.01, <br/>
<a id="pl.7.10"></a><var>7.10</var>subdivision 19b, clause (19), in paragraph (e), clauses (1) and (2), are effective for taxable <br/>
<a id="pl.7.11"></a><var>7.11</var>years beginning after December 31, 2012.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.7.12"></a><var>7.12</var>    Sec. 4. Minnesota Statutes 2010, section 290.0674, subdivision 1, is amended to read:<br/>
<a id="pl.7.13"></a><var>7.13</var>    Subdivision 1. <b>Credit allowed.</b> An individual is allowed a credit against the <br/>
<a id="pl.7.14"></a><var>7.14</var>tax imposed by this chapter in an amount equal to 75 percent of the amount paid for <br/>
<a id="pl.7.15"></a><var>7.15</var>education-related expenses for a qualifying child in kindergarten through grade 12. For <br/>
<a id="pl.7.16"></a><var>7.16</var>purposes of this section, "education-related expenses" means:<br/>
<a id="pl.7.17"></a><var>7.17</var>(1) fees or tuition for instruction by an instructor under section 
         <statute_ref>120A.22, subdivision <br/>
<a id="pl.7.18"></a><var>7.18</var>10
         </statute_ref>, clause (1), (2), (3), (4), or (5), or a member of the Minnesota Music Teachers <br/>
<a id="pl.7.19"></a><var>7.19</var>Association, and who is not a lineal ancestor or sibling of the dependent for instruction <br/>
<a id="pl.7.20"></a><var>7.20</var>outside the regular school day or school year, including tutoring, driver's education <br/>
<a id="pl.7.21"></a><var>7.21</var>offered as part of school curriculum, regardless of whether it is taken from a public or <br/>
<a id="pl.7.22"></a><var>7.22</var>private entity or summer camps, in grade or age appropriate curricula that supplement <br/>
<a id="pl.7.23"></a><var>7.23</var>curricula and instruction available during the regular school year, that assists a dependent <br/>
<a id="pl.7.24"></a><var>7.24</var>to improve knowledge of core curriculum areas or to expand knowledge and skills under <br/>
<a id="pl.7.25"></a><var>7.25</var>the required academic standards under section 
         <statute_ref>120B.021, subdivision 1</statute_ref>, and the elective <br/>
<a id="pl.7.26"></a><var>7.26</var>standard under section 
         <statute_ref>120B.022, subdivision 1</statute_ref>, clause (2), and that do not include the <br/>
<a id="pl.7.27"></a><var>7.27</var>teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such <br/>
<a id="pl.7.28"></a><var>7.28</var>tenets, doctrines, or worship;<br/>
<a id="pl.7.29"></a><var>7.29</var>(2) expenses for textbooks, including books and other instructional materials and <br/>
<a id="pl.7.30"></a><var>7.30</var>equipment purchased or leased for use in elementary and secondary schools in teaching <br/>
<a id="pl.7.31"></a><var>7.31</var>only those subjects legally and commonly taught in public elementary and secondary <br/>
<a id="pl.7.32"></a><var>7.32</var>schools in this state. "Textbooks" does not include instructional books and materials <br/>
<a id="pl.7.33"></a><var>7.33</var>used in the teaching of religious tenets, doctrines, or worship, the purpose of which is <br/>
<a id="pl.7.34"></a><var>7.34</var>to instill such tenets, doctrines, or worship, nor does it include books or materials for <br/>
<a id="pl.8.1"></a><var>8.1</var>extracurricular activities including sporting events, musical or dramatic events, speech <br/>
<a id="pl.8.2"></a><var>8.2</var>activities, driver's education, or similar programs;<br/>
<a id="pl.8.3"></a><var>8.3</var>(3) a maximum expense of $200 per family for personal computer hardware, <br/>
<a id="pl.8.4"></a><var>8.4</var>excluding single purpose processors, and educational software that assists a dependent to <br/>
<a id="pl.8.5"></a><var>8.5</var>improve knowledge of core curriculum areas or to expand knowledge and skills under <br/>
<a id="pl.8.6"></a><var>8.6</var>the required academic standards under section 
         <statute_ref>120B.021, subdivision 1</statute_ref>, and the elective <br/>
<a id="pl.8.7"></a><var>8.7</var>standard under section 
         <statute_ref>120B.022, subdivision 1</statute_ref>, clause (2), purchased for use in the <br/>
<a id="pl.8.8"></a><var>8.8</var>taxpayer's home and not used in a trade or business regardless of whether the computer is <br/>
<a id="pl.8.9"></a><var>8.9</var>required by the dependent's school; and<br/>
<a id="pl.8.10"></a><var>8.10</var>(4) the amount paid to others for tuition and transportation of a qualifying child <br/>
<a id="pl.8.11"></a><var>8.11</var>attending an elementary or secondary school situated in Minnesota, North Dakota, South <br/>
<a id="pl.8.12"></a><var>8.12</var>Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's <br/>
<a id="pl.8.13"></a><var>8.13</var>compulsory attendance laws, which is not operated for profit, and which adheres to the <br/>
<a id="pl.8.14"></a><var>8.14</var>provisions of the Civil Rights Act of 1964 and chapter 363A.<br/>
<a id="pl.8.15"></a><var>8.15</var>For purposes of this section, "qualifying child" has the meaning given in section <br/>
<a id="pl.8.16"></a><var>8.16</var>32(c)(3) of the Internal Revenue Code.<br/>
<a id="pl.8.17"></a><var>8.17</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.8.18"></a><var>8.18</var>December 31, 2012.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.8.19"></a><var>8.19</var>    Sec. 5. Minnesota Statutes 2010, section 290.068, subdivision 1, is amended to read:<br/>
<a id="pl.8.20"></a><var>8.20</var>    Subdivision 1. <b>Credit allowed.</b> A corporation, partners in a partnership, or <br/>
<a id="pl.8.21"></a><var>8.21</var>shareholders in a corporation treated as an "S" corporation under section 
         <statute_ref>290.9725</statute_ref> are <br/>
<a id="pl.8.22"></a><var>8.22</var>allowed a credit against the tax computed under this chapter for the taxable year equal to:<br/>
<a id="pl.8.23"></a><var>8.23</var>    (a) ten percent of the first $2,000,000 of the excess (if any) of<br/>
<a id="pl.8.24"></a><var>8.24</var>    (1) the qualified research expenses for the taxable year, over<br/>
<a id="pl.8.25"></a><var>8.25</var>    (2) the base amount; and<br/>
<a id="pl.8.26"></a><var>8.26</var>    (b) 2.5 4.7 percent on all of such excess expenses over $2,000,000.<br/>
<a id="pl.8.27"></a><var>8.27</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.8.28"></a><var>8.28</var>December 31, 2013.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.8.29"></a><var>8.29</var>    Sec. 6. Minnesota Statutes 2010, section 290.081, is amended to read:<br/>
<a id="pl.8.30"></a><var>8.30</var><b>290.081 INCOME OF NONRESIDENTS, RECIPROCITY.</b><br/>
<a id="pl.8.31"></a><var>8.31</var>    Subdivision 1. <b>Reciprocity with other states.</b> (a) The compensation received for <br/>
<a id="pl.8.32"></a><var>8.32</var>the performance of personal or professional services within this state by an individual <br/>
<a id="pl.8.33"></a><var>8.33</var>whose residence, place of abode, and place customarily returned to at least once a month <br/>
<a id="pl.9.1"></a><var>9.1</var>is in another state, shall be excluded from gross income to the extent such compensation is <br/>
<a id="pl.9.2"></a><var>9.2</var>subject to an income tax imposed by the state of residence; provided that such state allows <br/>
<a id="pl.9.3"></a><var>9.3</var>a similar exclusion of compensation received by residents of Minnesota for services <br/>
<a id="pl.9.4"></a><var>9.4</var>performed therein.<br/>
<a id="pl.9.5"></a><var>9.5</var>(b) When it is deemed to be in the best interests of the people of this state, the <br/>
<a id="pl.9.6"></a><var>9.6</var>commissioner may determine that the provisions of paragraph (a) shall not apply, as they <br/>
<a id="pl.9.7"></a><var>9.7</var>relate to all states except Wisconsin. The provisions of paragraph (a) apply with respect <br/>
<a id="pl.9.8"></a><var>9.8</var>to Wisconsin only for taxable years in which a reciprocity agreement with Wisconsin is <br/>
<a id="pl.9.9"></a><var>9.9</var>in effect as provided by this section. As long as the provisions of paragraph (a) apply <br/>
<a id="pl.9.10"></a><var>9.10</var>between Minnesota and Wisconsin, the provisions of paragraph (a) shall apply to any <br/>
<a id="pl.9.11"></a><var>9.11</var>individual who is domiciled in Wisconsin.<br/>
<a id="pl.9.12"></a><var>9.12</var>(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota <br/>
<a id="pl.9.13"></a><var>9.13</var>residents which would have been paid Wisconsin without paragraph (a) exceeds the <br/>
<a id="pl.9.14"></a><var>9.14</var>Minnesota tax on Wisconsin residents which would have been paid Minnesota without <br/>
<a id="pl.9.15"></a><var>9.15</var>paragraph (a), or vice versa, then the state with the net revenue loss resulting from <br/>
<a id="pl.9.16"></a><var>9.16</var>paragraph (a) must be compensated by the other state as provided in the agreement under <br/>
<a id="pl.9.17"></a><var>9.17</var>paragraph (d). This provision shall be effective for all years beginning after December 31, <br/>
<a id="pl.9.18"></a><var>9.18</var>1972. The data used for computing the loss to either state shall be determined on or before <br/>
<a id="pl.9.19"></a><var>9.19</var>September 30 of the year following the close of the previous calendar year.<br/>
<a id="pl.9.20"></a><var>9.20</var>(d) Interest is payable on all amounts calculated under paragraph (c) relating to <br/>
<a id="pl.9.21"></a><var>9.21</var>taxable years beginning after December 31, 2000 and before January 1, 2010. Interest <br/>
<a id="pl.9.22"></a><var>9.22</var>accrues from July 1 of the taxable year. <br/>
<a id="pl.9.23"></a><var>9.23</var>(e) The commissioner of revenue is authorized to enter into agreements reciprocity <br/>
<a id="pl.9.24"></a><var>9.24</var>agreement with the state of Wisconsin specifying must specify the compensation required <br/>
<a id="pl.9.25"></a><var>9.25</var>under paragraph (b), the one or more  reciprocity payment due date, dates for the revenue <br/>
<a id="pl.9.26"></a><var>9.26</var>loss relating to each taxable year, with one or more estimated payment due dates in the <br/>
<a id="pl.9.27"></a><var>9.27</var>same fiscal year in which the revenue loss occurred, and a final payment in the following <br/>
<a id="pl.9.28"></a><var>9.28</var>fiscal year, conditions constituting delinquency, interest rates, and a method for computing <br/>
<a id="pl.9.29"></a><var>9.29</var>interest due. Interest is payable from July 1 of the taxable year on final payments made in <br/>
<a id="pl.9.30"></a><var>9.30</var>the following fiscal year. Calculation of compensation under the agreement must specify <br/>
<a id="pl.9.31"></a><var>9.31</var>if the revenue loss is determined before or after the allowance of each state's credit for <br/>
<a id="pl.9.32"></a><var>9.32</var>taxes paid to the other state.<br/>
<a id="pl.9.33"></a><var>9.33</var>(e) (f) If an agreement cannot be reached as to the amount of the loss, the <br/>
<a id="pl.9.34"></a><var>9.34</var>commissioner of revenue and the taxing official of the state of Wisconsin shall each <br/>
<a id="pl.9.35"></a><var>9.35</var>appoint a member of a board of arbitration and these members shall appoint the third <br/>
<a id="pl.9.36"></a><var>9.36</var>member of the board. The board shall select one of its members as chair. Such board may <br/>
<a id="pl.10.1"></a><var>10.1</var>administer oaths, take testimony, subpoena witnesses, and require their attendance, require <br/>
<a id="pl.10.2"></a><var>10.2</var>the production of books, papers and documents, and hold hearings at such places as are <br/>
<a id="pl.10.3"></a><var>10.3</var>deemed necessary. The board shall then make a determination as to the amount to be paid <br/>
<a id="pl.10.4"></a><var>10.4</var>the other state which determination shall be final and conclusive.<br/>
<a id="pl.10.5"></a><var>10.5</var>(f) (g) The commissioner may furnish copies of returns, reports, or other information <br/>
<a id="pl.10.6"></a><var>10.6</var>to the taxing official of the state of Wisconsin, a member of the board of arbitration, or a <br/>
<a id="pl.10.7"></a><var>10.7</var>consultant under joint contract with the states of Minnesota and Wisconsin for the purpose <br/>
<a id="pl.10.8"></a><var>10.8</var>of making a determination as to the amount to be paid the other state under the provisions <br/>
<a id="pl.10.9"></a><var>10.9</var>of this section. Prior to the release of any information under the provisions of this section, <br/>
<a id="pl.10.10"></a><var>10.10</var>the person to whom the information is to be released shall sign an agreement which <br/>
<a id="pl.10.11"></a><var>10.11</var>provides that the person will protect the confidentiality of the returns and information <br/>
<a id="pl.10.12"></a><var>10.12</var>revealed thereby to the extent that it is protected under the laws of the state of Minnesota.<br/>
<a id="pl.10.13"></a><var>10.13</var>(h) Any reciprocity agreement entered into under this section continues in effect <br/>
<a id="pl.10.14"></a><var>10.14</var>until terminated by Minnesota or Wisconsin law. The commissioner may agree to modify <br/>
<a id="pl.10.15"></a><var>10.15</var>the timing or method of calculating the state payments to be made under the agreement, <br/>
<a id="pl.10.16"></a><var>10.16</var>consistent with the requirements of paragraphs (c) and (e), but may not terminate the <br/>
<a id="pl.10.17"></a><var>10.17</var>agreement.<br/>
<a id="pl.10.18"></a><var>10.18</var>    Subd. 2. <b>New reciprocity agreement with Wisconsin.</b> (a) The commissioner of <br/>
<a id="pl.10.19"></a><var>10.19</var>revenue is directed to initiate negotiations with the secretary of revenue of Wisconsin, <br/>
<a id="pl.10.20"></a><var>10.20</var>with the objective of entering into an income tax reciprocity agreement effective for tax <br/>
<a id="pl.10.21"></a><var>10.21</var>years beginning after December 31, 2011. The agreement must satisfy the conditions of <br/>
<a id="pl.10.22"></a><var>10.22</var>subdivision 1, with one or more estimated payment due dates and a final payment due <br/>
<a id="pl.10.23"></a><var>10.23</var>date specified so that the state with a net revenue loss as a result of the agreement receives <br/>
<a id="pl.10.24"></a><var>10.24</var>estimated payments from the other state, in the same fiscal year as that in which the net <br/>
<a id="pl.10.25"></a><var>10.25</var>revenue loss occurred and a final payment with interest in the following fiscal year.<br/>
<a id="pl.10.26"></a><var>10.26</var>(b) The commissioner may not enter into an income tax reciprocity agreement <br/>
<a id="pl.10.27"></a><var>10.27</var>with Wisconsin under this section until after Wisconsin has paid in full with interest the <br/>
<a id="pl.10.28"></a><var>10.28</var>amount due to Minnesota under the income tax reciprocity agreement in effect for taxable <br/>
<a id="pl.10.29"></a><var>10.29</var>years beginning before January 1, 2010.<br/>
<a id="pl.10.30"></a><var>10.30</var><b>EFFECTIVE DATE.</b>Subdivision 2 is effective the day following final enactment. <br/>
<a id="pl.10.31"></a><var>10.31</var>The changes to subdivision 1 are effective for taxable years beginning after December 31 <br/>
<a id="pl.10.32"></a><var>10.32</var>of the year of the agreement, contingent upon agreement from the state of Wisconsin to a <br/>
<a id="pl.10.33"></a><var>10.33</var>reciprocity arrangement in which estimated payments are made in the same fiscal year in <br/>
<a id="pl.10.34"></a><var>10.34</var>which a change in revenue occurs, and a final payment is made in the following fiscal year.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.10.35"></a><var>10.35</var>    Sec. 7. Minnesota Statutes 2010, section 290.091, subdivision 2, is amended to read:<br/>
<a id="pl.11.1"></a><var>11.1</var>    Subd. 2. <b>Definitions.</b> For purposes of the tax imposed by this section, the following <br/>
<a id="pl.11.2"></a><var>11.2</var>terms have the meanings given:<br/>
<a id="pl.11.3"></a><var>11.3</var>    (a) "Alternative minimum taxable income" means the sum of the following for <br/>
<a id="pl.11.4"></a><var>11.4</var>the taxable year:<br/>
<a id="pl.11.5"></a><var>11.5</var>    (1) the taxpayer's federal alternative minimum taxable income as defined in section <br/>
<a id="pl.11.6"></a><var>11.6</var>55(b)(2) of the Internal Revenue Code;<br/>
<a id="pl.11.7"></a><var>11.7</var>    (2) the taxpayer's itemized deductions allowed in computing federal alternative <br/>
<a id="pl.11.8"></a><var>11.8</var>minimum taxable income, but excluding:<br/>
<a id="pl.11.9"></a><var>11.9</var>    (i) the charitable contribution deduction under section 170 of the Internal Revenue <br/>
<a id="pl.11.10"></a><var>11.10</var>Code, including any additional subtraction for charitable contributions of food inventory <br/>
<a id="pl.11.11"></a><var>11.11</var>under section 290.01, subdivision 19b;<br/>
<a id="pl.11.12"></a><var>11.12</var>    (ii) the medical expense deduction;<br/>
<a id="pl.11.13"></a><var>11.13</var>    (iii) the casualty, theft, and disaster loss deduction; and<br/>
<a id="pl.11.14"></a><var>11.14</var>    (iv) the impairment-related work expenses of a disabled person;<br/>
<a id="pl.11.15"></a><var>11.15</var>    (3) for depletion allowances computed under section 613A(c) of the Internal <br/>
<a id="pl.11.16"></a><var>11.16</var>Revenue Code, with respect to each property (as defined in section 614 of the Internal <br/>
<a id="pl.11.17"></a><var>11.17</var>Revenue Code), to the extent not included in federal alternative minimum taxable income, <br/>
<a id="pl.11.18"></a><var>11.18</var>the excess of the deduction for depletion allowable under section 611 of the Internal <br/>
<a id="pl.11.19"></a><var>11.19</var>Revenue Code for the taxable year over the adjusted basis of the property at the end of the <br/>
<a id="pl.11.20"></a><var>11.20</var>taxable year (determined without regard to the depletion deduction for the taxable year);<br/>
<a id="pl.11.21"></a><var>11.21</var>    (4) to the extent not included in federal alternative minimum taxable income, the <br/>
<a id="pl.11.22"></a><var>11.22</var>amount of the tax preference for intangible drilling cost under section 57(a)(2) of the <br/>
<a id="pl.11.23"></a><var>11.23</var>Internal Revenue Code determined without regard to subparagraph (E);<br/>
<a id="pl.11.24"></a><var>11.24</var>    (5) to the extent not included in federal alternative minimum taxable income, the <br/>
<a id="pl.11.25"></a><var>11.25</var>amount of interest income as provided by section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (1); and<br/>
<a id="pl.11.26"></a><var>11.26</var>    (6) the amount of addition required by section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clauses (7) <br/>
<a id="pl.11.27"></a><var>11.27</var>to (9), (12), (13), (16), and (17);<br/>
<a id="pl.11.28"></a><var>11.28</var>    less the sum of the amounts determined under the following:<br/>
<a id="pl.11.29"></a><var>11.29</var>    (1) interest income as defined in section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clause (1);<br/>
<a id="pl.11.30"></a><var>11.30</var>    (2) an overpayment of state income tax as provided by section 
         <statute_ref>290.01, subdivision <br/>
<a id="pl.11.31"></a><var>11.31</var>19b
         </statute_ref>, clause (2), to the extent included in federal alternative minimum taxable income;<br/>
<a id="pl.11.32"></a><var>11.32</var>    (3) the amount of investment interest paid or accrued within the taxable year on <br/>
<a id="pl.11.33"></a><var>11.33</var>indebtedness to the extent that the amount does not exceed net investment income, as <br/>
<a id="pl.11.34"></a><var>11.34</var>defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include <br/>
<a id="pl.11.35"></a><var>11.35</var>amounts deducted in computing federal adjusted gross income; and<br/>
<a id="pl.12.1"></a><var>12.1</var>    (4) amounts subtracted from federal taxable income as provided by section 
         <statute_ref>290.01, <br/>
<a id="pl.12.2"></a><var>12.2</var>subdivision 19b
         </statute_ref>, clauses (6), (8) to (15), and (17), and (19).<br/>
<a id="pl.12.3"></a><var>12.3</var>    In the case of an estate or trust, alternative minimum taxable income must be <br/>
<a id="pl.12.4"></a><var>12.4</var>computed as provided in section 59(c) of the Internal Revenue Code.<br/>
<a id="pl.12.5"></a><var>12.5</var>    (b) "Investment interest" means investment interest as defined in section 163(d)(3) <br/>
<a id="pl.12.6"></a><var>12.6</var>of the Internal Revenue Code.<br/>
<a id="pl.12.7"></a><var>12.7</var>    (c) "Net minimum tax" means the minimum tax imposed by this section.<br/>
<a id="pl.12.8"></a><var>12.8</var>    (d) "Regular tax" means the tax that would be imposed under this chapter (without <br/>
<a id="pl.12.9"></a><var>12.9</var>regard to this section and section 290.032), reduced by the sum of the nonrefundable <br/>
<a id="pl.12.10"></a><var>12.10</var>credits allowed under this chapter.<br/>
<a id="pl.12.11"></a><var>12.11</var>    (e) "Tentative minimum tax" equals 6.4 percent of alternative minimum taxable <br/>
<a id="pl.12.12"></a><var>12.12</var>income after subtracting the exemption amount determined under subdivision 3.<br/>
<a id="pl.12.13"></a><var>12.13</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.12.14"></a><var>12.14</var>December 31, 2010.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.12.15"></a><var>12.15</var>    Sec. 8. Minnesota Statutes 2010, section 290.191, subdivision 2, is amended to read:<br/>
<a id="pl.12.16"></a><var>12.16</var>    Subd. 2. <b>Apportionment formula of general application.</b> (a) Except for those <br/>
<a id="pl.12.17"></a><var>12.17</var>trades or businesses required to use a different formula under subdivision 3 or section <br/>
<statute_ref><a id="pl.12.18"></a><var>12.18</var>290.36
         </statute_ref>, and for those trades or businesses that receive permission to use some other <br/>
<a id="pl.12.19"></a><var>12.19</var>method under section 
         <statute_ref>290.20</statute_ref> or under subdivision 4, a trade or business required to <br/>
<a id="pl.12.20"></a><var>12.20</var>apportion its net income must apportion its income to this state on the basis of the <br/>
<a id="pl.12.21"></a><var>12.21</var>percentage obtained by taking the sum of:<br/>
<a id="pl.12.22"></a><var>12.22</var>(1) the percent for the sales factor under paragraph (b) of the percentage which <br/>
<a id="pl.12.23"></a><var>12.23</var>the sales made within this state in connection with the trade or business during the tax <br/>
<a id="pl.12.24"></a><var>12.24</var>period are of the total sales wherever made in connection with the trade or business during <br/>
<a id="pl.12.25"></a><var>12.25</var>the tax period;.<br/>
<a id="pl.12.26"></a><var>12.26</var>(2) the percent for the property factor under paragraph (b) of the percentage which <br/>
<a id="pl.12.27"></a><var>12.27</var>the total tangible property used by the taxpayer in this state in connection with the trade or <br/>
<a id="pl.12.28"></a><var>12.28</var>business during the tax period is of the total tangible property, wherever located, used by <br/>
<a id="pl.12.29"></a><var>12.29</var>the taxpayer in connection with the trade or business during the tax period; and<br/>
<a id="pl.12.30"></a><var>12.30</var>(3) the percent for the payroll factor under paragraph (b) of the percentage which <br/>
<a id="pl.12.31"></a><var>12.31</var>the taxpayer's total payrolls paid or incurred in this state or paid in respect to labor <br/>
<a id="pl.12.32"></a><var>12.32</var>performed in this state in connection with the trade or business during the tax period are <br/>
<a id="pl.12.33"></a><var>12.33</var>of the taxpayer's total payrolls paid or incurred in connection with the trade or business <br/>
<a id="pl.12.34"></a><var>12.34</var>during the tax period.<br/>
<a id="pl.13.1"></a><var>13.1</var>(b) For purposes of paragraph (a) and subdivision 3, the following percentages apply <br/>
<a id="pl.13.2"></a><var>13.2</var>for the taxable years specified:<br/>
<table>
<col width="50px"/>
<col width="14.5"/>
<col width="5.5"/>
<col width="3.5"/>
<col width="6.5"/>
<col width="2.5"/>
<col width="2.5"/>
<col width="12.5"/>
<col width="2.5"/>
<col width="15"/>
<tr>
<td><a id="pl.13.3"></a><var>13.3</var><br/>
<a id="pl.13.4"></a><var>13.4</var><br/>
</td>
<td colspan="2" valign="top">Taxable years beginning <br/>
during calendar year<br/>
</td>
<td></td>
<td align="center" colspan="2" valign="top">Sales factor <br/>
percent<br/>
</td>
<td align="center"></td>
<td align="center" valign="top">Property factor <br/>
percent<br/>
</td>
<td></td>
<td align="center" valign="top">Payroll factor<br/>
percent<br/>
</td>
</tr>
<tr>
<td><a id="pl.13.5"></a><var>13.5</var><br/>
</td>
<td align="center">2007<br/>
</td>
<td></td>
<td></td>
<td align="right">78<br/>
</td>
<td></td>
<td></td>
<td align="center">11<br/>
</td>
<td></td>
<td align="center">11<br/>
</td>
</tr>
<tr>
<td><a id="pl.13.6"></a><var>13.6</var><br/>
</td>
<td align="center">2008<br/>
</td>
<td></td>
<td></td>
<td align="right">81<br/>
</td>
<td></td>
<td></td>
<td align="center">9.5<br/>
</td>
<td></td>
<td align="center">9.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.13.7"></a><var>13.7</var><br/>
</td>
<td align="center">2009<br/>
</td>
<td></td>
<td></td>
<td align="right">84<br/>
</td>
<td></td>
<td></td>
<td align="center">8<br/>
</td>
<td></td>
<td align="center">8<br/>
</td>
</tr>
<tr>
<td><a id="pl.13.8"></a><var>13.8</var><br/>
</td>
<td align="center">2010<br/>
</td>
<td></td>
<td></td>
<td align="right">87<br/>
</td>
<td></td>
<td></td>
<td align="center">6.5<br/>
</td>
<td></td>
<td align="center">6.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.13.9"></a><var>13.9</var><br/>
</td>
<td align="center">2011<br/>
</td>
<td></td>
<td></td>
<td align="right">90<br/>
</td>
<td></td>
<td></td>
<td align="center">5<br/>
</td>
<td></td>
<td align="center">5<br/>
</td>
</tr>
<tr>
<td><a id="pl.13.10"></a><var>13.10</var><br/>
</td>
<td align="center">2012<br/>
</td>
<td></td>
<td></td>
<td align="right">93<br/>
</td>
<td></td>
<td></td>
<td align="center">3.5<br/>
</td>
<td></td>
<td align="center">3.5<br/>
</td>
</tr>
<tr>
<td><a id="pl.13.11"></a><var>13.11</var><br/>
</td>
<td align="center">2013<br/>
</td>
<td></td>
<td></td>
<td align="right">96<br/>
</td>
<td></td>
<td></td>
<td align="center">2<br/>
</td>
<td></td>
<td align="center">2<br/>
</td>
</tr>
<tr>
<td><a id="pl.13.12"></a><var>13.12</var><br/>
</td>
<td colspan="3" valign="top">2014 and later calendar years <br/>
</td>
<td align="right" valign="top">100<br/>
</td>
<td></td>
<td></td>
<td align="center">0<br/>
</td>
<td></td>
<td align="center">0<br/>
</td>
</tr>
</table><a id="pl.13.13"></a><var>13.13</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.13.14"></a><var>13.14</var>December 31, 2011.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.13.15"></a><var>13.15</var>    Sec. 9. Minnesota Statutes 2010, section 290.191, subdivision 3, is amended to read:<br/>
<a id="pl.13.16"></a><var>13.16</var>    Subd. 3. <b>Apportionment formula for financial institutions.</b> Except for an <br/>
<a id="pl.13.17"></a><var>13.17</var>investment company required to apportion its income under section 
         <statute_ref>290.36</statute_ref>, a financial <br/>
<a id="pl.13.18"></a><var>13.18</var>institution that is required to apportion its net income must apportion its net income to this <br/>
<a id="pl.13.19"></a><var>13.19</var>state on the basis of the percentage obtained by taking the sum of:<br/>
<a id="pl.13.20"></a><var>13.20</var>(1) the percent for the sales factor under subdivision 2, paragraph (b), of the <br/>
<a id="pl.13.21"></a><var>13.21</var>percentage which the receipts from within this state in connection with the trade or <br/>
<a id="pl.13.22"></a><var>13.22</var>business during the tax period are of the total receipts in connection with the trade or <br/>
<a id="pl.13.23"></a><var>13.23</var>business during the tax period, from wherever derived;.<br/>
<a id="pl.13.24"></a><var>13.24</var>(2) the percent for the property factor under subdivision 2, paragraph (b), of the <br/>
<a id="pl.13.25"></a><var>13.25</var>percentage which the sum of the total tangible property used by the taxpayer in this <br/>
<a id="pl.13.26"></a><var>13.26</var>state and the intangible property owned by the taxpayer and attributed to this state in <br/>
<a id="pl.13.27"></a><var>13.27</var>connection with the trade or business during the tax period is of the sum of the total <br/>
<a id="pl.13.28"></a><var>13.28</var>tangible property, wherever located, used by the taxpayer and the intangible property <br/>
<a id="pl.13.29"></a><var>13.29</var>owned by the taxpayer and attributed to all states in connection with the trade or business <br/>
<a id="pl.13.30"></a><var>13.30</var>during the tax period; and<br/>
<a id="pl.13.31"></a><var>13.31</var>(3) the percent for the payroll factor under subdivision 2, paragraph (b), of the <br/>
<a id="pl.13.32"></a><var>13.32</var>percentage which the taxpayer's total payrolls paid or incurred in this state or paid in <br/>
<a id="pl.13.33"></a><var>13.33</var>respect to labor performed in this state in connection with the trade or business during <br/>
<a id="pl.13.34"></a><var>13.34</var>the tax period are of the taxpayer's total payrolls paid or incurred in connection with <br/>
<a id="pl.13.35"></a><var>13.35</var>the trade or business during the tax period.<br/>
<a id="pl.14.1"></a><var>14.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.14.2"></a><var>14.2</var>December 31, 2011.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.14.3"></a><var>14.3</var>    Sec. 10. Minnesota Statutes 2010, section 291.005, subdivision 1, is amended to read:<br/>
<a id="pl.14.4"></a><var>14.4</var>    Subdivision 1. <b>Scope.</b> Unless the context otherwise clearly requires, the following <br/>
<a id="pl.14.5"></a><var>14.5</var>terms used in this chapter shall have the following meanings:<br/>
<a id="pl.14.6"></a><var>14.6</var>    (1) "Commissioner" means the commissioner of revenue or any person to whom the <br/>
<a id="pl.14.7"></a><var>14.7</var>commissioner has delegated functions under this chapter.<br/>
<a id="pl.14.8"></a><var>14.8</var>    (2) "Federal gross estate" means the gross estate of a decedent as required to be <br/>
<a id="pl.14.9"></a><var>14.9</var>valued and otherwise determined for federal estate tax purposes under the Internal <br/>
<a id="pl.14.10"></a><var>14.10</var>Revenue Code.<br/>
<a id="pl.14.11"></a><var>14.11</var>    (3) "Internal Revenue Code" means the United States Internal Revenue Code of <br/>
<a id="pl.14.12"></a><var>14.12</var>1986, as amended through March 18, 2010, but without regard to the provisions of <br/>
<a id="pl.14.13"></a><var>14.13</var>sections 501 and 901 of Public Law 107-16.<br/>
<a id="pl.14.14"></a><var>14.14</var>    (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as <br/>
<a id="pl.14.15"></a><var>14.15</var>defined by section 2011(b)(3) of the Internal Revenue Code, increased by plus<br/>
<a id="pl.14.16"></a><var>14.16</var>(i) the amount of deduction for state death taxes allowed under section 2058 of <br/>
<a id="pl.14.17"></a><var>14.17</var>the Internal Revenue Code; less<br/>
<a id="pl.14.18"></a><var>14.18</var>(ii) (A) the value of qualified small business property under section 291.03, <br/>
<a id="pl.14.19"></a><var>14.19</var>subdivision 9, and the value of qualified farm property under section 291.03, subdivision <br/>
<a id="pl.14.20"></a><var>14.20</var>10, or (B) $4,000,000, whichever is less.<br/>
<a id="pl.14.21"></a><var>14.21</var>    (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a) <br/>
<a id="pl.14.22"></a><var>14.22</var>excluding therefrom any property included therein which has its situs outside Minnesota, <br/>
<a id="pl.14.23"></a><var>14.23</var>and (b) including therein any property omitted from the federal gross estate which is <br/>
<a id="pl.14.24"></a><var>14.24</var>includable therein, has its situs in Minnesota, and was not disclosed to federal taxing <br/>
<a id="pl.14.25"></a><var>14.25</var>authorities.<br/>
<a id="pl.14.26"></a><var>14.26</var>    (6) "Nonresident decedent" means an individual whose domicile at the time of <br/>
<a id="pl.14.27"></a><var>14.27</var>death was not in Minnesota.<br/>
<a id="pl.14.28"></a><var>14.28</var>    (7) "Personal representative" means the executor, administrator or other person <br/>
<a id="pl.14.29"></a><var>14.29</var>appointed by the court to administer and dispose of the property of the decedent. If there <br/>
<a id="pl.14.30"></a><var>14.30</var>is no executor, administrator or other person appointed, qualified, and acting within this <br/>
<a id="pl.14.31"></a><var>14.31</var>state, then any person in actual or constructive possession of any property having a situs in <br/>
<a id="pl.14.32"></a><var>14.32</var>this state which is included in the federal gross estate of the decedent shall be deemed <br/>
<a id="pl.14.33"></a><var>14.33</var>to be a personal representative to the extent of the property and the Minnesota estate tax <br/>
<a id="pl.14.34"></a><var>14.34</var>due with respect to the property.<br/>
<a id="pl.15.1"></a><var>15.1</var>    (8) "Resident decedent" means an individual whose domicile at the time of death <br/>
<a id="pl.15.2"></a><var>15.2</var>was in Minnesota.<br/>
<a id="pl.15.3"></a><var>15.3</var>    (9) "Situs of property" means, with respect to real property, the state or country in <br/>
<a id="pl.15.4"></a><var>15.4</var>which it is located; with respect to tangible personal property, the state or country in which <br/>
<a id="pl.15.5"></a><var>15.5</var>it was normally kept or located at the time of the decedent's death; and with respect to <br/>
<a id="pl.15.6"></a><var>15.6</var>intangible personal property, the state or country in which the decedent was domiciled <br/>
<a id="pl.15.7"></a><var>15.7</var>at death.<br/>
<a id="pl.15.8"></a><var>15.8</var><b>EFFECTIVE DATE.</b>This section is effective for decedents dying after December <br/>
<a id="pl.15.9"></a><var>15.9</var>31, 2010.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.15.10"></a><var>15.10</var>    Sec. 11. Minnesota Statutes 2010, section 291.03, subdivision 1, is amended to read:<br/>
<a id="pl.15.11"></a><var>15.11</var>    Subdivision 1. <b>Tax amount.</b> (a) The tax imposed shall be an amount equal to the <br/>
<a id="pl.15.12"></a><var>15.12</var>proportion of the maximum credit for state death taxes computed under section 2011 <br/>
<a id="pl.15.13"></a><var>15.13</var>of the Internal Revenue Code, but using Minnesota adjusted taxable estate instead of <br/>
<a id="pl.15.14"></a><var>15.14</var>federal adjusted taxable estate, as the Minnesota gross estate bears to the value of the <br/>
<a id="pl.15.15"></a><var>15.15</var>federal gross estate.<br/>
<a id="pl.15.16"></a><var>15.16</var>    (b) The tax determined under this subdivision must not be greater than the sum of <br/>
<a id="pl.15.17"></a><var>15.17</var>the following amounts multiplied by a fraction, the numerator of which is the Minnesota <br/>
<a id="pl.15.18"></a><var>15.18</var>gross estate and the denominator of which is the federal gross estate:<br/>
<a id="pl.15.19"></a><var>15.19</var>    (1) the rates and brackets under section 2001(c) of the Internal Revenue Code <br/>
<a id="pl.15.20"></a><var>15.20</var>multiplied by the sum of:<br/>
<a id="pl.15.21"></a><var>15.21</var>    (i) the taxable estate, as defined under section 2051 of the Internal Revenue Code; <br/>
<a id="pl.15.22"></a><var>15.22</var>plus<br/>
<a id="pl.15.23"></a><var>15.23</var>    (ii) adjusted taxable gifts, as defined in section 2001(b) of the Internal Revenue <br/>
<a id="pl.15.24"></a><var>15.24</var>Code; less<br/>
<a id="pl.15.25"></a><var>15.25</var>(iii) the lesser of (A) the sum of the value of qualified small business property <br/>
<a id="pl.15.26"></a><var>15.26</var>under subdivision 9, and the value of qualified farm property under subdivision 10, <br/>
<a id="pl.15.27"></a><var>15.27</var>or (B) $4,000,000; less<br/>
<a id="pl.15.28"></a><var>15.28</var>    (2) the amount of tax allowed under section 2001(b)(2) of the Internal Revenue <br/>
<a id="pl.15.29"></a><var>15.29</var>Code; and less<br/>
<a id="pl.15.30"></a><var>15.30</var>    (3) the federal credit allowed under section 2010 of the Internal Revenue Code.<br/>
<a id="pl.15.31"></a><var>15.31</var>    (c) For purposes of this subdivision, "Internal Revenue Code" means the Internal <br/>
<a id="pl.15.32"></a><var>15.32</var>Revenue Code of 1986, as amended through December 31, 2000.<br/>
<a id="pl.15.33"></a><var>15.33</var><b>EFFECTIVE DATE.</b>This section is effective for decedents dying after December <br/>
<a id="pl.15.34"></a><var>15.34</var>31, 2010.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.16.1"></a><var>16.1</var>    Sec. 12. Minnesota Statutes 2010, section 291.03, is amended by adding a subdivision <br/>
<a id="pl.16.2"></a><var>16.2</var>to read:<br/>
<a id="pl.16.3"></a><var>16.3</var>    Subd. 8. <b>Definitions.</b> (a) For purposes of this section, the following terms have the <br/>
<a id="pl.16.4"></a><var>16.4</var>meanings given in this subdivision.<br/>
<a id="pl.16.5"></a><var>16.5</var>(b) "Family member" means a family member as defined in section 2032A(e)(2) of <br/>
<a id="pl.16.6"></a><var>16.6</var>the Internal Revenue Code.<br/>
<a id="pl.16.7"></a><var>16.7</var>(c)  "Qualified heir" means a family member who acquired qualified property from <br/>
<a id="pl.16.8"></a><var>16.8</var>the decedent and satisfies the requirement under subdivision 9, clause (6), or subdivision <br/>
<a id="pl.16.9"></a><var>16.9</var>10, clause (4), for the property.<br/>
<a id="pl.16.10"></a><var>16.10</var>(d)  "Qualified property" means qualified small businesss property under subdivision <br/>
<a id="pl.16.11"></a><var>16.11</var>9 and qualified farm property under subdivision 10.<br/>
<a id="pl.16.12"></a><var>16.12</var><b>EFFECTIVE DATE.</b>This section is effective for decedents dying after December <br/>
<a id="pl.16.13"></a><var>16.13</var>31, 2010.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.16.14"></a><var>16.14</var>    Sec. 13. Minnesota Statutes 2010, section 291.03, is amended by adding a subdivision <br/>
<a id="pl.16.15"></a><var>16.15</var>to read:<br/>
<a id="pl.16.16"></a><var>16.16</var>    Subd. 9. <b>Qualified small business property.</b> Property satisfying all of the following <br/>
<a id="pl.16.17"></a><var>16.17</var>requirements is qualified small business property:<br/>
<a id="pl.16.18"></a><var>16.18</var>(1) The value of the property was included in the federal adjusted taxable estate.<br/>
<a id="pl.16.19"></a><var>16.19</var>(2) The property consists of the assets of a trade or business or shares of stock or <br/>
<a id="pl.16.20"></a><var>16.20</var>other ownership interests in a corporation or other entity engaged in a trade or business. <br/>
<a id="pl.16.21"></a><var>16.21</var>The decedent or the decedent's spouse must have materially participated in the trade or <br/>
<a id="pl.16.22"></a><var>16.22</var>business within the meaning of section 469 of the Internal Revenue Code during the <br/>
<a id="pl.16.23"></a><var>16.23</var>taxable year that ended before the date of the decedent's death. Shares of stock in a <br/>
<a id="pl.16.24"></a><var>16.24</var>corporation or an ownership interest in another type of entity do not qualify under this <br/>
<a id="pl.16.25"></a><var>16.25</var>subdivision if the shares or ownership interests are traded on a public stock exchange at <br/>
<a id="pl.16.26"></a><var>16.26</var>any time during the three-year period ending on the decedent's date of death.<br/>
<a id="pl.16.27"></a><var>16.27</var>(3) The gross annual sales of the trade or business were $10,000,000 or less for the <br/>
<a id="pl.16.28"></a><var>16.28</var>last taxable year that ended before the date of the death of the decedent.<br/>
<a id="pl.16.29"></a><var>16.29</var>(4) The property does not consist of cash or cash equivalents. For property consisting <br/>
<a id="pl.16.30"></a><var>16.30</var>of shares of stock or other ownership interests in an entity, the amount of cash or cash <br/>
<a id="pl.16.31"></a><var>16.31</var>equivalents held by the corporation or other entity must be deducted from the value of <br/>
<a id="pl.16.32"></a><var>16.32</var>the property qualifying under this subdivision in proportion to the decedent's share of <br/>
<a id="pl.16.33"></a><var>16.33</var>ownership of the entity on the date of death.<br/>
<a id="pl.16.34"></a><var>16.34</var>(5) The decedent continuously owned the property for the three-year period ending <br/>
<a id="pl.16.35"></a><var>16.35</var>on the date of death of the decedent.<br/>
<a id="pl.17.1"></a><var>17.1</var>(6) A family member continuously uses the property in the operation of the trade or <br/>
<a id="pl.17.2"></a><var>17.2</var>business for three years following the date of death of the decedent.<br/>
<a id="pl.17.3"></a><var>17.3</var>(7) The estate and the qualified heir elect to treat the property as qualified small <br/>
<a id="pl.17.4"></a><var>17.4</var>business property and agree, in the form prescribed by the commissioner, to pay the <br/>
<a id="pl.17.5"></a><var>17.5</var>recapture tax under subdivision 11, if applicable.<br/>
<a id="pl.17.6"></a><var>17.6</var><b>EFFECTIVE DATE.</b>This section is effective for decedents dying after December <br/>
<a id="pl.17.7"></a><var>17.7</var>31, 2010.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.17.8"></a><var>17.8</var>    Sec. 14. Minnesota Statutes 2010, section 291.03, is amended by adding a subdivision <br/>
<a id="pl.17.9"></a><var>17.9</var>to read:<br/>
<a id="pl.17.10"></a><var>17.10</var>    Subd. 10. <b>Qualified farm property.</b> Property satisfying all of the following <br/>
<a id="pl.17.11"></a><var>17.11</var>requirements is qualified farm property:<br/>
<a id="pl.17.12"></a><var>17.12</var>(1) The value of the property was included in the federal adjusted taxable estate.<br/>
<a id="pl.17.13"></a><var>17.13</var>(2) The property consists of a farm meeting the requirements of section 500.24, <br/>
<a id="pl.17.14"></a><var>17.14</var>and was classified for property tax purposes as the homestead of the decedent or the <br/>
<a id="pl.17.15"></a><var>17.15</var>decedent's spouse or both under section 273.124, and as class 2a property under section <br/>
<a id="pl.17.16"></a><var>17.16</var>273.13, subdivision 23.<br/>
<a id="pl.17.17"></a><var>17.17</var>(3) The decedent continuously owned the property for the three-year period ending <br/>
<a id="pl.17.18"></a><var>17.18</var>on the date of death of the decedent.<br/>
<a id="pl.17.19"></a><var>17.19</var>(4) A family member continuously uses the property in the operation of the trade or <br/>
<a id="pl.17.20"></a><var>17.20</var>business for three years following the date of death of the decedent.<br/>
<a id="pl.17.21"></a><var>17.21</var>(5) The estate and the qualified heir elect to treat the property as qualified farm <br/>
<a id="pl.17.22"></a><var>17.22</var>property and agree, in a form prescribed by the commissioner, to pay the recapture tax <br/>
<a id="pl.17.23"></a><var>17.23</var>under subdivision 11, if applicable.<br/>
<a id="pl.17.24"></a><var>17.24</var><b>EFFECTIVE DATE.</b>This section is effective for decedents dying after December <br/>
<a id="pl.17.25"></a><var>17.25</var>31, 2010.<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.17.26"></a><var>17.26</var>    Sec. 15. Minnesota Statutes 2010, section 291.03, is amended by adding a subdivision <br/>
<a id="pl.17.27"></a><var>17.27</var>to read:<br/>
<a id="pl.17.28"></a><var>17.28</var>    Subd. 11. <b>Recapture tax.</b> (a) If, within three years after the decedent's death and <br/>
<a id="pl.17.29"></a><var>17.29</var>before the death of the qualified heir, the qualified heir disposes of any interest in the <br/>
<a id="pl.17.30"></a><var>17.30</var>qualified property, other than by a disposition to a family member, or a family member <br/>
<a id="pl.17.31"></a><var>17.31</var>ceases to use the qualified property which was acquired or passed from the decedent, an <br/>
<a id="pl.17.32"></a><var>17.32</var>additional estate tax is imposed on the property.<br/>
<a id="pl.18.1"></a><var>18.1</var>(b) The amount of the additional tax equals the amount of the exclusion claimed by <br/>
<a id="pl.18.2"></a><var>18.2</var>the estate under subdivision 8, paragraph (d), multiplied by 16 percent.<br/>
<a id="pl.18.3"></a><var>18.3</var>(c) The additional tax under this subdivision is due on the day which is six months <br/>
<a id="pl.18.4"></a><var>18.4</var>after the date of the disposition or cessation in paragraph (a).<br/>
<a id="pl.18.5"></a><var>18.5</var><b>EFFECTIVE DATE.</b>This section is effective for decedents dying after December <br/>
<a id="pl.18.6"></a><var>18.6</var>31, 2010.<br/>
<br/>
<a id="bill.1.16.0"></a><a id="pl.18.7"></a><var>18.7</var>    Sec. 16. <b>INCOME TAX RECIPROCITY BENCHMARK STUDY.</b><br/>
<a id="pl.18.8"></a><var>18.8</var>(a) The Department of Revenue, in conjunction with the Wisconsin Department of <br/>
<a id="pl.18.9"></a><var>18.9</var>Revenue, must conduct a study to determine at least the following:<br/>
<a id="pl.18.10"></a><var>18.10</var>(1) the number of residents of each state who earn income from personal services in <br/>
<a id="pl.18.11"></a><var>18.11</var>the other state;<br/>
<a id="pl.18.12"></a><var>18.12</var>(2) the total amount of income earned by residents of each state who earn income <br/>
<a id="pl.18.13"></a><var>18.13</var>from personal services in the other state; and<br/>
<a id="pl.18.14"></a><var>18.14</var>(3) the change in tax revenue in each state if an income tax reciprocity arrangement <br/>
<a id="pl.18.15"></a><var>18.15</var>were resumed between the two states under which the taxpayers were required to pay <br/>
<a id="pl.18.16"></a><var>18.16</var>income taxes on the income only in their state of residence.<br/>
<a id="pl.18.17"></a><var>18.17</var>(b) The study must be conducted as soon as practicable, using information obtained <br/>
<a id="pl.18.18"></a><var>18.18</var>from each state's income tax returns for tax year 2011, and from any other source of <br/>
<a id="pl.18.19"></a><var>18.19</var>information the departments determine is necessary to complete the study.<br/>
<a id="pl.18.20"></a><var>18.20</var>(c) No later than March 1, 2013, the Department of Revenue must submit a report <br/>
<a id="pl.18.21"></a><var>18.21</var>containing the results of the study to the governor and to the chairs and ranking minority <br/>
<a id="pl.18.22"></a><var>18.22</var>members of the legislative committees having jurisdiction over taxes.<br/>
<a id="pl.18.23"></a><var>18.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.17.0"></a><a id="pl.18.24"></a><var>18.24</var>    Sec. 17. <b>ESTATE TAX; STUDY.</b><br/>
<a id="pl.18.25"></a><var>18.25</var>(a) The commissioner of revenue shall conduct a study of the Minnesota estate tax. <br/>
<a id="pl.18.26"></a><var>18.26</var>The study must include at least the following elements:<br/>
<a id="pl.18.27"></a><var>18.27</var>(1) evaluation of the estate tax using standard tax policy principles and methods of <br/>
<a id="pl.18.28"></a><var>18.28</var>analysis;<br/>
<a id="pl.18.29"></a><var>18.29</var>(2) consideration of the implications of recent federal estate tax changes, including <br/>
<a id="pl.18.30"></a><var>18.30</var>the repeal of the federal credit for state death taxes, the increase in the federal exclusion <br/>
<a id="pl.18.31"></a><var>18.31</var>amount, and the portability of the federal exclusion, for state estate and inheritance taxes;<br/>
<a id="pl.19.1"></a><var>19.1</var>(3) consideration of the advantages and disadvantages of revenue neutral alternatives <br/>
<a id="pl.19.2"></a><var>19.2</var>to the estate tax, such as an inheritance tax, a complementary gift tax, or imposition of <br/>
<a id="pl.19.3"></a><var>19.3</var>the income tax on bequests; and<br/>
<a id="pl.19.4"></a><var>19.4</var>(4) analysis of the available empirical evidence on the effects of the present and <br/>
<a id="pl.19.5"></a><var>19.5</var>alternative tax structures of a Minnesota tax on estates or inheritances on domicile and <br/>
<a id="pl.19.6"></a><var>19.6</var>migration decisions of residents and the implications for state revenues.<br/>
<a id="pl.19.7"></a><var>19.7</var>(b) In preparing the study, the commissioner shall consult with and seek advice from <br/>
<a id="pl.19.8"></a><var>19.8</var>the probate and estate section of the Minnesota State Bar Association.<br/>
<a id="pl.19.9"></a><var>19.9</var>(c) By February 1, 2012, the commissioner shall submit a report to the chairs and <br/>
<a id="pl.19.10"></a><var>19.10</var>ranking minority members of the house of representatives and senate committees with <br/>
<a id="pl.19.11"></a><var>19.11</var>jurisdiction over taxation, of the findings of the study and identification of issues for policy <br/>
<a id="pl.19.12"></a><var>19.12</var>makers to consider in deciding whether to revise, reform, replace, or repeal the estate tax.<br/>
<br/>
<a id="bill.1.18.0"></a><a id="pl.19.13"></a><var>19.13</var>    Sec. 18. <b>APPROPRIATIONS.</b><br/>
<a id="pl.19.14"></a><var>19.14</var>$291,000 in fiscal year 2012 and $314,000 in fiscal year 2013 are appropriated from <br/>
<a id="pl.19.15"></a><var>19.15</var>the general fund to the commissioner of revenue for the income reciprocity benchmark <br/>
<a id="pl.19.16"></a><var>19.16</var>study required under section 16. The appropriation under this section is onetime and <br/>
<a id="pl.19.17"></a><var>19.17</var>is not added to the agency's base budget.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.19.20"></a><var>19.20</var>    Section 1. Minnesota Statutes 2010, section 289A.02, subdivision 7, as amended by <br/>
<a id="pl.19.21"></a><var>19.21</var>Laws 2011, chapter 8, section 1, is amended to read:<br/>
<a id="pl.19.22"></a><var>19.22</var>    Subd. 7. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, for taxable <br/>
<a id="pl.19.23"></a><var>19.23</var>years beginning before January 1, 2010, and after December 31, 2010, "Internal Revenue <br/>
<a id="pl.19.24"></a><var>19.24</var>Code" means the Internal Revenue Code of 1986, as amended through March 18, 2010; <br/>
<a id="pl.19.25"></a><var>19.25</var>and for taxable years beginning after December 31, 2009, and before January 1, 2011, <br/>
<a id="pl.19.26"></a><var>19.26</var>"Internal Revenue Code" means the Internal Revenue Code of 1986, as amended through <br/>
<a id="pl.19.27"></a><var>19.27</var>December 31, 2010.<br/>
<a id="pl.19.28"></a><var>19.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment for <br/>
<a id="pl.19.29"></a><var>19.29</var>taxable years beginning after December 31, 2009.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.19.30"></a><var>19.30</var>    Sec. 2. Minnesota Statutes 2010, section 290.01, subdivision 19, as amended by Laws <br/>
<a id="pl.19.31"></a><var>19.31</var>2011, chapter 8, section 2, is amended to read:<br/>
<a id="pl.19.32"></a><var>19.32</var>    Subd. 19. <b>Net income.</b> The term "net income" means the federal taxable income, <br/>
<a id="pl.19.33"></a><var>19.33</var>as defined in section 63 of the Internal Revenue Code of 1986, as amended through the <br/>
<a id="pl.20.1"></a><var>20.1</var>date named in this subdivision, incorporating the federal effective dates of changes to the <br/>
<a id="pl.20.2"></a><var>20.2</var>Internal Revenue Code and any elections made by the taxpayer in accordance with the <br/>
<a id="pl.20.3"></a><var>20.3</var>Internal Revenue Code in determining federal taxable income for federal income tax <br/>
<a id="pl.20.4"></a><var>20.4</var>purposes, and with the modifications provided in subdivisions 19a to 19f.<br/>
<a id="pl.20.5"></a><var>20.5</var>    In the case of a regulated investment company or a fund thereof, as defined in section <br/>
<a id="pl.20.6"></a><var>20.6</var>851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment <br/>
<a id="pl.20.7"></a><var>20.7</var>company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, <br/>
<a id="pl.20.8"></a><var>20.8</var>except that:<br/>
<a id="pl.20.9"></a><var>20.9</var>    (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal <br/>
<a id="pl.20.10"></a><var>20.10</var>Revenue Code does not apply;<br/>
<a id="pl.20.11"></a><var>20.11</var>    (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal <br/>
<a id="pl.20.12"></a><var>20.12</var>Revenue Code must be applied by allowing a deduction for capital gain dividends and <br/>
<a id="pl.20.13"></a><var>20.13</var>exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal <br/>
<a id="pl.20.14"></a><var>20.14</var>Revenue Code; and<br/>
<a id="pl.20.15"></a><var>20.15</var>    (3) the deduction for dividends paid must also be applied in the amount of any <br/>
<a id="pl.20.16"></a><var>20.16</var>undistributed capital gains which the regulated investment company elects to have treated <br/>
<a id="pl.20.17"></a><var>20.17</var>as provided in section 852(b)(3)(D) of the Internal Revenue Code.<br/>
<a id="pl.20.18"></a><var>20.18</var>    The net income of a real estate investment trust as defined and limited by section <br/>
<a id="pl.20.19"></a><var>20.19</var>856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust <br/>
<a id="pl.20.20"></a><var>20.20</var>taxable income as defined in section 857(b)(2) of the Internal Revenue Code.<br/>
<a id="pl.20.21"></a><var>20.21</var>    The net income of a designated settlement fund as defined in section 468B(d) of <br/>
<a id="pl.20.22"></a><var>20.22</var>the Internal Revenue Code means the gross income as defined in section 468B(b) of the <br/>
<a id="pl.20.23"></a><var>20.23</var>Internal Revenue Code.<br/>
<a id="pl.20.24"></a><var>20.24</var>    The Internal Revenue Code of 1986, as amended through March 18 December 31, <br/>
<a id="pl.20.25"></a><var>20.25</var>2010, shall be in effect for taxable years beginning after December 31, 1996, except <br/>
<a id="pl.20.26"></a><var>20.26</var>that for taxable years beginning after December 31, 2009, and before January 1, 2011, <br/>
<a id="pl.20.27"></a><var>20.27</var>"Internal Revenue Code" means the Internal Revenue Code of 1986, as amended through <br/>
<a id="pl.20.28"></a><var>20.28</var>December 31, 2010. The provisions of the act of January 22, 2010, Public Law 111-126, <br/>
<a id="pl.20.29"></a><var>20.29</var>to accelerate the benefits for charitable cash contributions for the relief of victims of the <br/>
<a id="pl.20.30"></a><var>20.30</var>Haitian earthquake, are effective at the same time it became effective for federal purposes <br/>
<a id="pl.20.31"></a><var>20.31</var>and apply to the subtraction under subdivision 19b, clause (6). The provisions of title II, <br/>
<a id="pl.20.32"></a><var>20.32</var>section 2112, of the act of September 27, 2010, Public Law 111-240, rollovers from <br/>
<a id="pl.20.33"></a><var>20.33</var>elective deferral plans to designated Roth accounts, are effective at the same time they <br/>
<a id="pl.20.34"></a><var>20.34</var>became effective for federal purposes and taxable rollovers are included in net income at <br/>
<a id="pl.20.35"></a><var>20.35</var>the same time they are included in gross income for federal purposes.<br/>
<a id="pl.21.1"></a><var>21.1</var>    Except as otherwise provided, references to the Internal Revenue Code in <br/>
<a id="pl.21.2"></a><var>21.2</var>subdivisions 19 to 19f mean the code in effect for purposes of determining net income for <br/>
<a id="pl.21.3"></a><var>21.3</var>the applicable year.<br/>
<a id="pl.21.4"></a><var>21.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.21.5"></a><var>21.5</var>except that the changes incorporated by federal changes are effective at the same time as <br/>
<a id="pl.21.6"></a><var>21.6</var>the changes were effective for federal purposes.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.21.7"></a><var>21.7</var>    Sec. 3. Minnesota Statutes 2010, section 290.01, subdivision 19a, as amended by Laws <br/>
<a id="pl.21.8"></a><var>21.8</var>2011, chapter 8, section 3, is amended to read:<br/>
<a id="pl.21.9"></a><var>21.9</var>    Subd. 19a. <b>Additions to federal taxable income.</b> For individuals, estates, and <br/>
<a id="pl.21.10"></a><var>21.10</var>trusts, there shall be added to federal taxable income:<br/>
<a id="pl.21.11"></a><var>21.11</var>    (1)(i) interest income on obligations of any state other than Minnesota or a political <br/>
<a id="pl.21.12"></a><var>21.12</var>or governmental subdivision, municipality, or governmental agency or instrumentality <br/>
<a id="pl.21.13"></a><var>21.13</var>of any state other than Minnesota exempt from federal income taxes under the Internal <br/>
<a id="pl.21.14"></a><var>21.14</var>Revenue Code or any other federal statute; and<br/>
<a id="pl.21.15"></a><var>21.15</var>    (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue <br/>
<a id="pl.21.16"></a><var>21.16</var>Code, except:<br/>
<a id="pl.21.17"></a><var>21.17</var>(A) the portion of the exempt-interest dividends exempt from state taxation under <br/>
<a id="pl.21.18"></a><var>21.18</var>the laws of the United States; and<br/>
<a id="pl.21.19"></a><var>21.19</var>(B) the portion of the exempt-interest dividends derived from interest income <br/>
<a id="pl.21.20"></a><var>21.20</var>on obligations of the state of Minnesota or its political or governmental subdivisions, <br/>
<a id="pl.21.21"></a><var>21.21</var>municipalities, governmental agencies or instrumentalities, but only if the portion of the <br/>
<a id="pl.21.22"></a><var>21.22</var>exempt-interest dividends from such Minnesota sources paid to all shareholders represents <br/>
<a id="pl.21.23"></a><var>21.23</var>95 percent or more of the exempt-interest dividends, including any dividends exempt <br/>
<a id="pl.21.24"></a><var>21.24</var>under subitem (A), that are paid by the regulated investment company as defined in section <br/>
<a id="pl.21.25"></a><var>21.25</var>851(a) of the Internal Revenue Code, or the fund of the regulated investment company as <br/>
<a id="pl.21.26"></a><var>21.26</var>defined in section 851(g) of the Internal Revenue Code, making the payment; and<br/>
<a id="pl.21.27"></a><var>21.27</var>    (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal <br/>
<a id="pl.21.28"></a><var>21.28</var>government described in section 7871(c) of the Internal Revenue Code shall be treated as <br/>
<a id="pl.21.29"></a><var>21.29</var>interest income on obligations of the state in which the tribe is located;<br/>
<a id="pl.21.30"></a><var>21.30</var>    (2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid <br/>
<a id="pl.21.31"></a><var>21.31</var>or accrued within the taxable year under this chapter and the amount of taxes based on <br/>
<a id="pl.21.32"></a><var>21.32</var>net income paid, sales and use, motor vehicle sales, or excise taxes paid to any other <br/>
<a id="pl.21.33"></a><var>21.33</var>state or to any province or territory of Canada, to the extent allowed as a deduction <br/>
<a id="pl.21.34"></a><var>21.34</var>under section 63(d) of the Internal Revenue Code, but the addition may not be more <br/>
<a id="pl.21.35"></a><var>21.35</var>than the amount by which the itemized deductions as allowed under section 63(d) of <br/>
<a id="pl.22.1"></a><var>22.1</var>the Internal Revenue Code exceeds the amount of the standard deduction as defined in <br/>
<a id="pl.22.2"></a><var>22.2</var>section 63(c) of the Internal Revenue Code, disregarding the amounts allowed under <br/>
<a id="pl.22.3"></a><var>22.3</var>sections 63(c)(1)(C) and 63(c)(1)(E) of the Internal Revenue Code. For the purpose of <br/>
<a id="pl.22.4"></a><var>22.4</var>this paragraph, the disallowance of itemized deductions under section 68 of the Internal <br/>
<a id="pl.22.5"></a><var>22.5</var>Revenue Code of 1986, income, sales and use, motor vehicle sales, or excise taxes are <br/>
<a id="pl.22.6"></a><var>22.6</var>the last itemized deductions disallowed;<br/>
<a id="pl.22.7"></a><var>22.7</var>    (3) the capital gain amount of a lump-sum distribution to which the special tax under <br/>
<a id="pl.22.8"></a><var>22.8</var>section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;<br/>
<a id="pl.22.9"></a><var>22.9</var>    (4) the amount of income taxes paid or accrued within the taxable year under this <br/>
<a id="pl.22.10"></a><var>22.10</var>chapter and taxes based on net income paid to any other state or any province or territory <br/>
<a id="pl.22.11"></a><var>22.11</var>of Canada, to the extent allowed as a deduction in determining federal adjusted gross <br/>
<a id="pl.22.12"></a><var>22.12</var>income. For the purpose of this paragraph, income taxes do not include the taxes imposed <br/>
<a id="pl.22.13"></a><var>22.13</var>by sections 
         <statute_ref>290.0922, subdivision 1</statute_ref>, paragraph (b), 
         <statute_ref>290.9727</statute_ref>, 
         <statute_ref>290.9728</statute_ref>, and 
         <statute_ref>290.9729</statute_ref>;<br/>
<a id="pl.22.14"></a><var>22.14</var>    (5) the amount of expense, interest, or taxes disallowed pursuant to section 
         <statute_ref>290.10 <br/>
</statute_ref><a id="pl.22.15"></a><var>22.15</var>other than expenses or interest used in computing net interest income for the subtraction <br/>
<a id="pl.22.16"></a><var>22.16</var>allowed under subdivision 19b, clause (1);<br/>
<a id="pl.22.17"></a><var>22.17</var>    (6) the amount of a partner's pro rata share of net income which does not flow <br/>
<a id="pl.22.18"></a><var>22.18</var>through to the partner because the partnership elected to pay the tax on the income under <br/>
<a id="pl.22.19"></a><var>22.19</var>section 6242(a)(2) of the Internal Revenue Code;<br/>
<a id="pl.22.20"></a><var>22.20</var>    (7) 80 percent of the depreciation deduction allowed under section 168(k) of the <br/>
<a id="pl.22.21"></a><var>22.21</var>Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that <br/>
<a id="pl.22.22"></a><var>22.22</var>in the taxable year generates a deduction for depreciation under section 168(k) and the <br/>
<a id="pl.22.23"></a><var>22.23</var>activity generates a loss for the taxable year that the taxpayer is not allowed to claim for <br/>
<a id="pl.22.24"></a><var>22.24</var>the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is <br/>
<a id="pl.22.25"></a><var>22.25</var>limited to excess of the depreciation claimed by the activity under section 168(k) over the <br/>
<a id="pl.22.26"></a><var>22.26</var>amount of the loss from the activity that is not allowed in the taxable year. In succeeding <br/>
<a id="pl.22.27"></a><var>22.27</var>taxable years when the losses not allowed in the taxable year are allowed, the depreciation <br/>
<a id="pl.22.28"></a><var>22.28</var>under section 168(k) is allowed;<br/>
<a id="pl.22.29"></a><var>22.29</var>    (8) 80 percent of the amount by which the deduction allowed by section 179 of the <br/>
<a id="pl.22.30"></a><var>22.30</var>Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal <br/>
<a id="pl.22.31"></a><var>22.31</var>Revenue Code of 1986, as amended through December 31, 2003;<br/>
<a id="pl.22.32"></a><var>22.32</var>    (9) to the extent deducted in computing federal taxable income, the amount of the <br/>
<a id="pl.22.33"></a><var>22.33</var>deduction allowable under section 199 of the Internal Revenue Code;<br/>
<a id="pl.22.34"></a><var>22.34</var>    (10) for taxable years beginning before January 1, 2013, the exclusion allowed <br/>
<a id="pl.22.35"></a><var>22.35</var>under section 139A of the Internal Revenue Code for federal subsidies for prescription <br/>
<a id="pl.22.36"></a><var>22.36</var>drug plans;<br/>
<a id="pl.23.1"></a><var>23.1</var>(11) the amount of expenses disallowed under section 290.10, subdivision 2;<br/>
<a id="pl.23.2"></a><var>23.2</var>    (12) for taxable years beginning before January 1, 2010, and after December 31, <br/>
<a id="pl.23.3"></a><var>23.3</var>2010, the amount deducted for qualified tuition and related expenses under section 222 of <br/>
<a id="pl.23.4"></a><var>23.4</var>the Internal Revenue Code, to the extent deducted from gross income;<br/>
<a id="pl.23.5"></a><var>23.5</var>    (13) for taxable years beginning before January 1, 2010, and after December 31, <br/>
<a id="pl.23.6"></a><var>23.6</var>2010, the amount deducted for certain expenses of elementary and secondary school <br/>
<a id="pl.23.7"></a><var>23.7</var>teachers under section 62(a)(2)(D) of the Internal Revenue Code, to the extent deducted <br/>
<a id="pl.23.8"></a><var>23.8</var>from gross income;<br/>
<a id="pl.23.9"></a><var>23.9</var>(14) the additional standard deduction for property taxes payable that is allowable <br/>
<a id="pl.23.10"></a><var>23.10</var>under section 63(c)(1)(C) of the Internal Revenue Code;<br/>
<a id="pl.23.11"></a><var>23.11</var>(15) the additional standard deduction for qualified motor vehicle sales taxes <br/>
<a id="pl.23.12"></a><var>23.12</var>allowable under section 63(c)(1)(E) of the Internal Revenue Code;<br/>
<a id="pl.23.13"></a><var>23.13</var>(16) discharge of indebtedness income resulting from reacquisition of business <br/>
<a id="pl.23.14"></a><var>23.14</var>indebtedness and deferred under section 108(i) of the Internal Revenue Code; and<br/>
<a id="pl.23.15"></a><var>23.15</var>(17) the amount of unemployment compensation exempt from tax under section <br/>
<a id="pl.23.16"></a><var>23.16</var>85(c) of the Internal Revenue Code.;<br/>
<a id="pl.23.17"></a><var>23.17</var>(18) to the extent included in the computation of federal taxable income in taxable <br/>
<a id="pl.23.18"></a><var>23.18</var>years beginning after December 31, 2010, the amount of disallowed itemized deductions;<br/>
<a id="pl.23.19"></a><var>23.19</var>(i) The amount of disallowed itemized deductions is equal to the lesser of:<br/>
<a id="pl.23.20"></a><var>23.20</var>(A) three percent of the excess of the taxpayer's federal adjusted gross income <br/>
<a id="pl.23.21"></a><var>23.21</var>over the applicable amount; or <br/>
<a id="pl.23.22"></a><var>23.22</var>(B) 80 percent of the amount of the itemized deductions otherwise allowable to the <br/>
<a id="pl.23.23"></a><var>23.23</var>taxpayer under the Internal Revenue Code for the taxable year.<br/>
<a id="pl.23.24"></a><var>23.24</var>(ii) The term "applicable amount" means $100,000, or $50,000 in the case of a <br/>
<a id="pl.23.25"></a><var>23.25</var>married individual filing a separate return. Each dollar amount shall be increased by <br/>
<a id="pl.23.26"></a><var>23.26</var>an amount equal to:<br/>
<a id="pl.23.27"></a><var>23.27</var>(A) such dollar amount, multiplied by <br/>
<a id="pl.23.28"></a><var>23.28</var>(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal <br/>
<a id="pl.23.29"></a><var>23.29</var>Revenue Code for the calendar year in which the taxable year begins, by substituting <br/>
<a id="pl.23.30"></a><var>23.30</var>"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof.<br/>
<a id="pl.23.31"></a><var>23.31</var>(iii) The term "itemized deductions" does not include:<br/>
<a id="pl.23.32"></a><var>23.32</var>(A) the deduction for medical expenses under section 213 of the Internal Revenue <br/>
<a id="pl.23.33"></a><var>23.33</var>Code;<br/>
<a id="pl.23.34"></a><var>23.34</var>(B) any deduction for investment interest as defined in section 163(d) of the Internal <br/>
<a id="pl.23.35"></a><var>23.35</var>Revenue Code; and<br/>
<a id="pl.24.1"></a><var>24.1</var>(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or <br/>
<a id="pl.24.2"></a><var>24.2</var>theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue <br/>
<a id="pl.24.3"></a><var>24.3</var>Code or for losses described in section 165(d) of the Internal Revenue Code;<br/>
<a id="pl.24.4"></a><var>24.4</var>(19) to the extent included in federal taxable income in taxable years beginning after <br/>
<a id="pl.24.5"></a><var>24.5</var>December 31, 2010, the amount of disallowed personal exemptions for taxpayers with <br/>
<a id="pl.24.6"></a><var>24.6</var>federal adjusted gross income over the threshold amount;<br/>
<a id="pl.24.7"></a><var>24.7</var>(i) The disallowed personal exemption amount is equal to the dollar amount of the <br/>
<a id="pl.24.8"></a><var>24.8</var>personal exemptions claimed by the taxpayer in the computation of federal taxable income <br/>
<a id="pl.24.9"></a><var>24.9</var>multiplied by the applicable percentage.<br/>
<a id="pl.24.10"></a><var>24.10</var>(ii) "Applicable percentage" means two percentage points for each $2,500 (or <br/>
<a id="pl.24.11"></a><var>24.11</var>fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable <br/>
<a id="pl.24.12"></a><var>24.12</var>year exceeds the threshold amount. In the case of a married individual filing a separate <br/>
<a id="pl.24.13"></a><var>24.13</var>return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In no <br/>
<a id="pl.24.14"></a><var>24.14</var>event shall the applicable percentage exceed 100 percent.<br/>
<a id="pl.24.15"></a><var>24.15</var>(iii) The term "threshold amount" means:<br/>
<a id="pl.24.16"></a><var>24.16</var>(A) $150,000 in the case of a joint return or a surviving spouse;<br/>
<a id="pl.24.17"></a><var>24.17</var>(B) $125,000 in the case of a head of a household;<br/>
<a id="pl.24.18"></a><var>24.18</var>(C) $100,000 in the case of an individual who is not married and who is not a <br/>
<a id="pl.24.19"></a><var>24.19</var>surviving spouse or head of a household; and<br/>
<a id="pl.24.20"></a><var>24.20</var>(D) $75,000 in the case of a married individual filing a separate return.<br/>
<a id="pl.24.21"></a><var>24.21</var>(iv) The thresholds shall be increased by an amount equal to:<br/>
<a id="pl.24.22"></a><var>24.22</var>(A) such dollar amount, multiplied by<br/>
<a id="pl.24.23"></a><var>24.23</var>(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal <br/>
<a id="pl.24.24"></a><var>24.24</var>Revenue Code for the calendar year in which the taxable year begins, by substituting <br/>
<a id="pl.24.25"></a><var>24.25</var>"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; and<br/>
<a id="pl.24.26"></a><var>24.26</var>(20) for taxable years beginning after December 31, 2010, the amount deducted for <br/>
<a id="pl.24.27"></a><var>24.27</var>employer-provided educational assistance programs under section 127 of the Internal <br/>
<a id="pl.24.28"></a><var>24.28</var>Revenue Code.<br/>
<a id="pl.24.29"></a><var>24.29</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.24.30"></a><var>24.30</var>December 31, 2010, except that the change to clause (10) is effective the day following <br/>
<a id="pl.24.31"></a><var>24.31</var>final enactment.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.24.32"></a><var>24.32</var>    Sec. 4. Minnesota Statutes 2010, section 290.01, subdivision 19c, as amended by Laws <br/>
<a id="pl.24.33"></a><var>24.33</var>2011, chapter 8, section 4, is amended to read:<br/>
<a id="pl.24.34"></a><var>24.34</var>    Subd. 19c. <b>Corporations; additions to federal taxable income.</b> For corporations, <br/>
<a id="pl.24.35"></a><var>24.35</var>there shall be added to federal taxable income:<br/>
<a id="pl.25.1"></a><var>25.1</var>    (1) the amount of any deduction taken for federal income tax purposes for income, <br/>
<a id="pl.25.2"></a><var>25.2</var>excise, or franchise taxes based on net income or related minimum taxes, including but not <br/>
<a id="pl.25.3"></a><var>25.3</var>limited to the tax imposed under section 
         <statute_ref>290.0922</statute_ref>, paid by the corporation to Minnesota, <br/>
<a id="pl.25.4"></a><var>25.4</var>another state, a political subdivision of another state, the District of Columbia, or any <br/>
<a id="pl.25.5"></a><var>25.5</var>foreign country or possession of the United States;<br/>
<a id="pl.25.6"></a><var>25.6</var>    (2) interest not subject to federal tax upon obligations of: the United States, its <br/>
<a id="pl.25.7"></a><var>25.7</var>possessions, its agencies, or its instrumentalities; the state of Minnesota or any other <br/>
<a id="pl.25.8"></a><var>25.8</var>state, any of its political or governmental subdivisions, any of its municipalities, or any <br/>
<a id="pl.25.9"></a><var>25.9</var>of its governmental agencies or instrumentalities; the District of Columbia; or Indian <br/>
<a id="pl.25.10"></a><var>25.10</var>tribal governments;<br/>
<a id="pl.25.11"></a><var>25.11</var>    (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal <br/>
<a id="pl.25.12"></a><var>25.12</var>Revenue Code;<br/>
<a id="pl.25.13"></a><var>25.13</var>    (4) the amount of any net operating loss deduction taken for federal income tax <br/>
<a id="pl.25.14"></a><var>25.14</var>purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss <br/>
<a id="pl.25.15"></a><var>25.15</var>deduction under section 810 of the Internal Revenue Code;<br/>
<a id="pl.25.16"></a><var>25.16</var>    (5) the amount of any special deductions taken for federal income tax purposes <br/>
<a id="pl.25.17"></a><var>25.17</var>under sections 241 to 247 and 965 of the Internal Revenue Code;<br/>
<a id="pl.25.18"></a><var>25.18</var>    (6) losses from the business of mining, as defined in section 
         <statute_ref>290.05, subdivision 1</statute_ref>, <br/>
<a id="pl.25.19"></a><var>25.19</var>clause (a), that are not subject to Minnesota income tax;<br/>
<a id="pl.25.20"></a><var>25.20</var>    (7) the amount of any capital losses deducted for federal income tax purposes under <br/>
<a id="pl.25.21"></a><var>25.21</var>sections 1211 and 1212 of the Internal Revenue Code;<br/>
<a id="pl.25.22"></a><var>25.22</var>    (8) the exempt foreign trade income of a foreign sales corporation under sections <br/>
<a id="pl.25.23"></a><var>25.23</var>921(a) and 291 of the Internal Revenue Code;<br/>
<a id="pl.25.24"></a><var>25.24</var>    (9) the amount of percentage depletion deducted under sections 611 through 614 and <br/>
<a id="pl.25.25"></a><var>25.25</var>291 of the Internal Revenue Code;<br/>
<a id="pl.25.26"></a><var>25.26</var>    (10) for certified pollution control facilities placed in service in a taxable year <br/>
<a id="pl.25.27"></a><var>25.27</var>beginning before December 31, 1986, and for which amortization deductions were elected <br/>
<a id="pl.25.28"></a><var>25.28</var>under section 169 of the Internal Revenue Code of 1954, as amended through December <br/>
<a id="pl.25.29"></a><var>25.29</var>31, 1985, the amount of the amortization deduction allowed in computing federal taxable <br/>
<a id="pl.25.30"></a><var>25.30</var>income for those facilities;<br/>
<a id="pl.25.31"></a><var>25.31</var>    (11) the amount of any deemed dividend from a foreign operating corporation <br/>
<a id="pl.25.32"></a><var>25.32</var>determined pursuant to section 
         <statute_ref>290.17, subdivision 4</statute_ref>, paragraph (g). The deemed dividend <br/>
<a id="pl.25.33"></a><var>25.33</var>shall be reduced by the amount of the addition to income required by clauses (20), (21), <br/>
<a id="pl.25.34"></a><var>25.34</var>(22), and (23);<br/>
<a id="pl.26.1"></a><var>26.1</var>    (12) the amount of a partner's pro rata share of net income which does not flow <br/>
<a id="pl.26.2"></a><var>26.2</var>through to the partner because the partnership elected to pay the tax on the income under <br/>
<a id="pl.26.3"></a><var>26.3</var>section 6242(a)(2) of the Internal Revenue Code;<br/>
<a id="pl.26.4"></a><var>26.4</var>    (13) the amount of net income excluded under section 114 of the Internal Revenue <br/>
<a id="pl.26.5"></a><var>26.5</var>Code;<br/>
<a id="pl.26.6"></a><var>26.6</var>    (14) any increase in subpart F income, as defined in section 952(a) of the Internal <br/>
<a id="pl.26.7"></a><var>26.7</var>Revenue Code, for the taxable year when subpart F income is calculated without regard to <br/>
<a id="pl.26.8"></a><var>26.8</var>the provisions of Division C, title III, section 303(b) of Public Law 110-343;<br/>
<a id="pl.26.9"></a><var>26.9</var>    (15) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A) <br/>
<a id="pl.26.10"></a><var>26.10</var>and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer <br/>
<a id="pl.26.11"></a><var>26.11</var>has an activity that in the taxable year generates a deduction for depreciation under <br/>
<a id="pl.26.12"></a><var>26.12</var>section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year <br/>
<a id="pl.26.13"></a><var>26.13</var>that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed <br/>
<a id="pl.26.14"></a><var>26.14</var>under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the <br/>
<a id="pl.26.15"></a><var>26.15</var>depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the <br/>
<a id="pl.26.16"></a><var>26.16</var>amount of the loss from the activity that is not allowed in the taxable year. In succeeding <br/>
<a id="pl.26.17"></a><var>26.17</var>taxable years when the losses not allowed in the taxable year are allowed, the depreciation <br/>
<a id="pl.26.18"></a><var>26.18</var>under section 168(k)(1)(A) and (k)(4)(A) is allowed;<br/>
<a id="pl.26.19"></a><var>26.19</var>    (16) 80 percent of the amount by which the deduction allowed by section 179 of the <br/>
<a id="pl.26.20"></a><var>26.20</var>Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal <br/>
<a id="pl.26.21"></a><var>26.21</var>Revenue Code of 1986, as amended through December 31, 2003;<br/>
<a id="pl.26.22"></a><var>26.22</var>    (17) to the extent deducted in computing federal taxable income, the amount of the <br/>
<a id="pl.26.23"></a><var>26.23</var>deduction allowable under section 199 of the Internal Revenue Code;<br/>
<a id="pl.26.24"></a><var>26.24</var>    (18) for taxable years beginning before January 1, 2013, the exclusion allowed <br/>
<a id="pl.26.25"></a><var>26.25</var>under section 139A of the Internal Revenue Code for federal subsidies for prescription <br/>
<a id="pl.26.26"></a><var>26.26</var>drug plans;<br/>
<a id="pl.26.27"></a><var>26.27</var>    (19) the amount of expenses disallowed under section 
         <statute_ref>290.10, subdivision 2</statute_ref>;<br/>
<a id="pl.26.28"></a><var>26.28</var>    (20) an amount equal to the interest and intangible expenses, losses, and costs paid, <br/>
<a id="pl.26.29"></a><var>26.29</var>accrued, or incurred by any member of the taxpayer's unitary group to or for the benefit <br/>
<a id="pl.26.30"></a><var>26.30</var>of a corporation that is a member of the taxpayer's unitary business group that qualifies <br/>
<a id="pl.26.31"></a><var>26.31</var>as a foreign operating corporation. For purposes of this clause, intangible expenses and <br/>
<a id="pl.26.32"></a><var>26.32</var>costs include:<br/>
<a id="pl.26.33"></a><var>26.33</var>    (i) expenses, losses, and costs for, or related to, the direct or indirect acquisition, <br/>
<a id="pl.26.34"></a><var>26.34</var>use, maintenance or management, ownership, sale, exchange, or any other disposition of <br/>
<a id="pl.26.35"></a><var>26.35</var>intangible property;<br/>
<a id="pl.27.1"></a><var>27.1</var>    (ii) losses incurred, directly or indirectly, from factoring transactions or discounting <br/>
<a id="pl.27.2"></a><var>27.2</var>transactions;<br/>
<a id="pl.27.3"></a><var>27.3</var>    (iii) royalty, patent, technical, and copyright fees;<br/>
<a id="pl.27.4"></a><var>27.4</var>    (iv) licensing fees; and<br/>
<a id="pl.27.5"></a><var>27.5</var>    (v) other similar expenses and costs.<br/>
<a id="pl.27.6"></a><var>27.6</var>For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent <br/>
<a id="pl.27.7"></a><var>27.7</var>applications, trade names, trademarks, service marks, copyrights, mask works, trade <br/>
<a id="pl.27.8"></a><var>27.8</var>secrets, and similar types of intangible assets.<br/>
<a id="pl.27.9"></a><var>27.9</var>This clause does not apply to any item of interest or intangible expenses or costs paid, <br/>
<a id="pl.27.10"></a><var>27.10</var>accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect <br/>
<a id="pl.27.11"></a><var>27.11</var>to such item of income to the extent that the income to the foreign operating corporation <br/>
<a id="pl.27.12"></a><var>27.12</var>is income from sources without the United States as defined in subtitle A, chapter 1, <br/>
<a id="pl.27.13"></a><var>27.13</var>subchapter N, part 1, of the Internal Revenue Code;<br/>
<a id="pl.27.14"></a><var>27.14</var>    (21) except as already included in the taxpayer's taxable income pursuant to clause <br/>
<a id="pl.27.15"></a><var>27.15</var>(20), any interest income and income generated from intangible property received or <br/>
<a id="pl.27.16"></a><var>27.16</var>accrued by a foreign operating corporation that is a member of the taxpayer's unitary <br/>
<a id="pl.27.17"></a><var>27.17</var>group. For purposes of this clause, income generated from intangible property includes:<br/>
<a id="pl.27.18"></a><var>27.18</var>    (i) income related to the direct or indirect acquisition, use, maintenance or <br/>
<a id="pl.27.19"></a><var>27.19</var>management, ownership, sale, exchange, or any other disposition of intangible property;<br/>
<a id="pl.27.20"></a><var>27.20</var>    (ii) income from factoring transactions or discounting transactions;<br/>
<a id="pl.27.21"></a><var>27.21</var>    (iii) royalty, patent, technical, and copyright fees;<br/>
<a id="pl.27.22"></a><var>27.22</var>    (iv) licensing fees; and<br/>
<a id="pl.27.23"></a><var>27.23</var>    (v) other similar income.<br/>
<a id="pl.27.24"></a><var>27.24</var>For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent <br/>
<a id="pl.27.25"></a><var>27.25</var>applications, trade names, trademarks, service marks, copyrights, mask works, trade <br/>
<a id="pl.27.26"></a><var>27.26</var>secrets, and similar types of intangible assets.<br/>
<a id="pl.27.27"></a><var>27.27</var>This clause does not apply to any item of interest or intangible income received or accrued <br/>
<a id="pl.27.28"></a><var>27.28</var>by a foreign operating corporation with respect to such item of income to the extent that <br/>
<a id="pl.27.29"></a><var>27.29</var>the income is income from sources without the United States as defined in subtitle A, <br/>
<a id="pl.27.30"></a><var>27.30</var>chapter 1, subchapter N, part 1, of the Internal Revenue Code;<br/>
<a id="pl.27.31"></a><var>27.31</var>    (22) the dividends attributable to the income of a foreign operating corporation that <br/>
<a id="pl.27.32"></a><var>27.32</var>is a member of the taxpayer's unitary group in an amount that is equal to the dividends <br/>
<a id="pl.27.33"></a><var>27.33</var>paid deduction of a real estate investment trust under section 561(a) of the Internal <br/>
<a id="pl.27.34"></a><var>27.34</var>Revenue Code for amounts paid or accrued by the real estate investment trust to the <br/>
<a id="pl.27.35"></a><var>27.35</var>foreign operating corporation;<br/>
<a id="pl.28.1"></a><var>28.1</var>    (23) the income of a foreign operating corporation that is a member of the taxpayer's <br/>
<a id="pl.28.2"></a><var>28.2</var>unitary group in an amount that is equal to gains derived from the sale of real or personal <br/>
<a id="pl.28.3"></a><var>28.3</var>property located in the United States;<br/>
<a id="pl.28.4"></a><var>28.4</var>    (24) for taxable years beginning before January 1, 2010, and after December 31, <br/>
<a id="pl.28.5"></a><var>28.5</var>2010, the additional amount allowed as a deduction for donation of computer technology <br/>
<a id="pl.28.6"></a><var>28.6</var>and equipment under section 170(e)(6) of the Internal Revenue Code, to the extent <br/>
<a id="pl.28.7"></a><var>28.7</var>deducted from taxable income; and<br/>
<a id="pl.28.8"></a><var>28.8</var>(25) discharge of indebtedness income resulting from reacquisition of business <br/>
<a id="pl.28.9"></a><var>28.9</var>indebtedness and deferred under section 108(i) of the Internal Revenue Code.<br/>
<a id="pl.28.10"></a><var>28.10</var><b>EFFECTIVE DATE.</b>The change to clause (24) is effective for taxable years <br/>
<a id="pl.28.11"></a><var>28.11</var>beginning after December 31, 2010. The change to clause (18) is effective the day <br/>
<a id="pl.28.12"></a><var>28.12</var>following final enactment.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.28.13"></a><var>28.13</var>    Sec. 5. Minnesota Statutes 2010, section 290.01, subdivision 31, as amended by Laws <br/>
<a id="pl.28.14"></a><var>28.14</var>2011, chapter 8, section 5, is amended to read:<br/>
<a id="pl.28.15"></a><var>28.15</var>    Subd. 31. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, for <br/>
<a id="pl.28.16"></a><var>28.16</var>taxable years beginning before January 1, 2010, and after December 31, 2010, "Internal <br/>
<a id="pl.28.17"></a><var>28.17</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through March <br/>
<a id="pl.28.18"></a><var>28.18</var>18 December 31, 2010; and for taxable years beginning after December 31, 2009, and <br/>
<a id="pl.28.19"></a><var>28.19</var>before January 1, 2011, "Internal Revenue Code" means the Internal Revenue Code of <br/>
<a id="pl.28.20"></a><var>28.20</var>1986, as amended through December 31, 2010. Internal Revenue Code also includes any <br/>
<a id="pl.28.21"></a><var>28.21</var>uncodified provision in federal law that relates to provisions of the Internal Revenue <br/>
<a id="pl.28.22"></a><var>28.22</var>Code that are incorporated into Minnesota law. When used in this chapter, the reference <br/>
<a id="pl.28.23"></a><var>28.23</var>to "subtitle A, chapter 1, subchapter N, part 1, of the Internal Revenue Code" is to the <br/>
<a id="pl.28.24"></a><var>28.24</var>Internal Revenue Code as amended through March 18, 2010.<br/>
<a id="pl.28.25"></a><var>28.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.28.26"></a><var>28.26</var>except the changes incorporated by federal changes are effective at the same time as the <br/>
<a id="pl.28.27"></a><var>28.27</var>changes were effective for federal purposes.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.28.28"></a><var>28.28</var>    Sec. 6. Minnesota Statutes 2010, section 290.06, subdivision 2c, is amended to read:<br/>
<a id="pl.28.29"></a><var>28.29</var>    Subd. 2c. <b>Schedules of rates for individuals, estates, and trusts.</b> (a) The income <br/>
<a id="pl.28.30"></a><var>28.30</var>taxes imposed by this chapter upon married individuals filing joint returns and surviving <br/>
<a id="pl.28.31"></a><var>28.31</var>spouses as defined in section 2(a) of the Internal Revenue Code must be computed by <br/>
<a id="pl.28.32"></a><var>28.32</var>applying to their taxable net income the following schedule of rates:<br/>
<a id="pl.28.33"></a><var>28.33</var>    (1) On the first $25,680, 5.35 percent;<br/>
<a id="pl.29.1"></a><var>29.1</var>    (2) On all over $25,680, but not over $102,030, 7.05 percent;<br/>
<a id="pl.29.2"></a><var>29.2</var>    (3) On all over $102,030, 7.85 percent.<br/>
<a id="pl.29.3"></a><var>29.3</var>    Married individuals filing separate returns, estates, and trusts must compute their <br/>
<a id="pl.29.4"></a><var>29.4</var>income tax by applying the above rates to their taxable income, except that the income <br/>
<a id="pl.29.5"></a><var>29.5</var>brackets will be one-half of the above amounts.<br/>
<a id="pl.29.6"></a><var>29.6</var>    (b) The income taxes imposed by this chapter upon unmarried individuals must be <br/>
<a id="pl.29.7"></a><var>29.7</var>computed by applying to taxable net income the following schedule of rates:<br/>
<a id="pl.29.8"></a><var>29.8</var>    (1) On the first $17,570, 5.35 percent;<br/>
<a id="pl.29.9"></a><var>29.9</var>    (2) On all over $17,570, but not over $57,710, 7.05 percent;<br/>
<a id="pl.29.10"></a><var>29.10</var>    (3) On all over $57,710, 7.85 percent.<br/>
<a id="pl.29.11"></a><var>29.11</var>    (c) The income taxes imposed by this chapter upon unmarried individuals qualifying <br/>
<a id="pl.29.12"></a><var>29.12</var>as a head of household as defined in section 2(b) of the Internal Revenue Code must be <br/>
<a id="pl.29.13"></a><var>29.13</var>computed by applying to taxable net income the following schedule of rates:<br/>
<a id="pl.29.14"></a><var>29.14</var>    (1) On the first $21,630, 5.35 percent;<br/>
<a id="pl.29.15"></a><var>29.15</var>    (2) On all over $21,630, but not over $86,910, 7.05 percent;<br/>
<a id="pl.29.16"></a><var>29.16</var>    (3) On all over $86,910, 7.85 percent.<br/>
<a id="pl.29.17"></a><var>29.17</var>    (d) In lieu of a tax computed according to the rates set forth in this subdivision, the <br/>
<a id="pl.29.18"></a><var>29.18</var>tax of any individual taxpayer whose taxable net income for the taxable year is less than <br/>
<a id="pl.29.19"></a><var>29.19</var>an amount determined by the commissioner must be computed in accordance with tables <br/>
<a id="pl.29.20"></a><var>29.20</var>prepared and issued by the commissioner of revenue based on income brackets of not <br/>
<a id="pl.29.21"></a><var>29.21</var>more than $100. The amount of tax for each bracket shall be computed at the rates set <br/>
<a id="pl.29.22"></a><var>29.22</var>forth in this subdivision, provided that the commissioner may disregard a fractional part of <br/>
<a id="pl.29.23"></a><var>29.23</var>a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.<br/>
<a id="pl.29.24"></a><var>29.24</var>    (e) An individual who is not a Minnesota resident for the entire year must compute <br/>
<a id="pl.29.25"></a><var>29.25</var>the individual's Minnesota income tax as provided in this subdivision. After the <br/>
<a id="pl.29.26"></a><var>29.26</var>application of the nonrefundable credits provided in this chapter, the tax liability must <br/>
<a id="pl.29.27"></a><var>29.27</var>then be multiplied by a fraction in which:<br/>
<a id="pl.29.28"></a><var>29.28</var>    (1) the numerator is the individual's Minnesota source federal adjusted gross income <br/>
<a id="pl.29.29"></a><var>29.29</var>as defined in section 62 of the Internal Revenue Code and increased by the additions <br/>
<a id="pl.29.30"></a><var>29.30</var>required under section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clauses (1), (5), (6), (7), (8), (9), (12), <br/>
<a id="pl.29.31"></a><var>29.31</var>(13), (16), and (17), and (20), and reduced by the Minnesota assignable portion of the <br/>
<a id="pl.29.32"></a><var>29.32</var>subtraction for United States government interest under section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, <br/>
<a id="pl.29.33"></a><var>29.33</var>clause (1), and the subtractions under section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clauses (8), (9), <br/>
<a id="pl.29.34"></a><var>29.34</var>(13), (14), (15), and (17), after applying the allocation and assignability provisions of <br/>
<a id="pl.29.35"></a><var>29.35</var>section 
         <statute_ref>290.081</statute_ref>, clause (a), or 
         <statute_ref>290.17</statute_ref>; and<br/>
<a id="pl.30.1"></a><var>30.1</var>    (2) the denominator is the individual's federal adjusted gross income as defined in <br/>
<a id="pl.30.2"></a><var>30.2</var>section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in <br/>
<a id="pl.30.3"></a><var>30.3</var>section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clauses (1), (5), (6), (7), (8), (9), (12), (13), (16), and <br/>
<a id="pl.30.4"></a><var>30.4</var>(17), and (20), and reduced by the amounts specified in section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, <br/>
<a id="pl.30.5"></a><var>30.5</var>clauses (1), (8), (9), (13), (14), (15), and (17).<br/>
<a id="pl.30.6"></a><var>30.6</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.30.7"></a><var>30.7</var>December 31, 2010.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.30.8"></a><var>30.8</var>    Sec. 7. Minnesota Statutes 2010, section 290A.03, subdivision 15, as amended by <br/>
<a id="pl.30.9"></a><var>30.9</var>Laws 2011, chapter 8, section 6, is amended to read:<br/>
<a id="pl.30.10"></a><var>30.10</var>    Subd. 15. <b>Internal Revenue Code.</b> For taxable years beginning before January 1, <br/>
<a id="pl.30.11"></a><var>30.11</var>2010, and after December 31, 2010, "Internal Revenue Code" means the Internal Revenue <br/>
<a id="pl.30.12"></a><var>30.12</var>Code of 1986, as amended through March 18 December 31, 2010; and for taxable years <br/>
<a id="pl.30.13"></a><var>30.13</var>beginning after December 31, 2009, and before January 1, 2011, "Internal Revenue Code" <br/>
<a id="pl.30.14"></a><var>30.14</var>means the Internal Revenue Code of 1986, as amended through December 31, 2010.<br/>
<a id="pl.30.15"></a><var>30.15</var><b>EFFECTIVE DATE.</b>This section is effective for property tax refunds based on <br/>
<a id="pl.30.16"></a><var>30.16</var>property taxes payable on or after December 31, 2011, and rent paid on or after December <br/>
<a id="pl.30.17"></a><var>30.17</var>31, 2010.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.30.18"></a><var>30.18</var>    Sec. 8. Minnesota Statutes 2010, section 291.005, subdivision 1, is amended to read:<br/>
<a id="pl.30.19"></a><var>30.19</var>    Subdivision 1. <b>Scope.</b> Unless the context otherwise clearly requires, the following <br/>
<a id="pl.30.20"></a><var>30.20</var>terms used in this chapter shall have the following meanings:<br/>
<a id="pl.30.21"></a><var>30.21</var>    (1) "Commissioner" means the commissioner of revenue or any person to whom the <br/>
<a id="pl.30.22"></a><var>30.22</var>commissioner has delegated functions under this chapter.<br/>
<a id="pl.30.23"></a><var>30.23</var>    (2) "Federal gross estate" means the gross estate of a decedent as required to be <br/>
<a id="pl.30.24"></a><var>30.24</var>valued and otherwise determined for federal estate tax purposes under the Internal <br/>
<a id="pl.30.25"></a><var>30.25</var>Revenue Code.<br/>
<a id="pl.30.26"></a><var>30.26</var>    (3) "Internal Revenue Code" means the United States Internal Revenue Code of <br/>
<a id="pl.30.27"></a><var>30.27</var>1986, as amended through March 18 December 31, 2010, but without regard to the <br/>
<a id="pl.30.28"></a><var>30.28</var>provisions of sections 501 and 901 of Public Law 107-16, as amended by Public Law <br/>
<a id="pl.30.29"></a><var>30.29</var>111-312, and section 301(c) of Public Law 111-312.<br/>
<a id="pl.30.30"></a><var>30.30</var>    (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as <br/>
<a id="pl.30.31"></a><var>30.31</var>defined by section 2011(b)(3) of the Internal Revenue Code, increased by the amount of <br/>
<a id="pl.30.32"></a><var>30.32</var>deduction for state death taxes allowed under section 2058 of the Internal Revenue Code.<br/>
<a id="pl.31.1"></a><var>31.1</var>    (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a) <br/>
<a id="pl.31.2"></a><var>31.2</var>excluding therefrom any property included therein which has its situs outside Minnesota, <br/>
<a id="pl.31.3"></a><var>31.3</var>and (b) including therein any property omitted from the federal gross estate which is <br/>
<a id="pl.31.4"></a><var>31.4</var>includable therein, has its situs in Minnesota, and was not disclosed to federal taxing <br/>
<a id="pl.31.5"></a><var>31.5</var>authorities.<br/>
<a id="pl.31.6"></a><var>31.6</var>    (6) "Nonresident decedent" means an individual whose domicile at the time of <br/>
<a id="pl.31.7"></a><var>31.7</var>death was not in Minnesota.<br/>
<a id="pl.31.8"></a><var>31.8</var>    (7) "Personal representative" means the executor, administrator or other person <br/>
<a id="pl.31.9"></a><var>31.9</var>appointed by the court to administer and dispose of the property of the decedent. If there <br/>
<a id="pl.31.10"></a><var>31.10</var>is no executor, administrator or other person appointed, qualified, and acting within this <br/>
<a id="pl.31.11"></a><var>31.11</var>state, then any person in actual or constructive possession of any property having a situs in <br/>
<a id="pl.31.12"></a><var>31.12</var>this state which is included in the federal gross estate of the decedent shall be deemed <br/>
<a id="pl.31.13"></a><var>31.13</var>to be a personal representative to the extent of the property and the Minnesota estate tax <br/>
<a id="pl.31.14"></a><var>31.14</var>due with respect to the property.<br/>
<a id="pl.31.15"></a><var>31.15</var>    (8) "Resident decedent" means an individual whose domicile at the time of death <br/>
<a id="pl.31.16"></a><var>31.16</var>was in Minnesota.<br/>
<a id="pl.31.17"></a><var>31.17</var>    (9) "Situs of property" means, with respect to real property, the state or country in <br/>
<a id="pl.31.18"></a><var>31.18</var>which it is located; with respect to tangible personal property, the state or country in which <br/>
<a id="pl.31.19"></a><var>31.19</var>it was normally kept or located at the time of the decedent's death; and with respect to <br/>
<a id="pl.31.20"></a><var>31.20</var>intangible personal property, the state or country in which the decedent was domiciled <br/>
<a id="pl.31.21"></a><var>31.21</var>at death.<br/>
<a id="pl.31.22"></a><var>31.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.31.25"></a><var>31.25</var>    Section 1. Minnesota Statutes 2010, section 289A.20, subdivision 4, is amended to <br/>
<a id="pl.31.26"></a><var>31.26</var>read:<br/>
<a id="pl.31.27"></a><var>31.27</var>    Subd. 4. <b>Sales and use tax.</b> (a) The taxes imposed by chapter 297A are due and <br/>
<a id="pl.31.28"></a><var>31.28</var>payable to the commissioner monthly on or before the 20th day of the month following <br/>
<a id="pl.31.29"></a><var>31.29</var>the month in which the taxable event occurred, or following another reporting period <br/>
<a id="pl.31.30"></a><var>31.30</var>as the commissioner prescribes or as allowed under section 
         <statute_ref>289A.18, subdivision 4</statute_ref>, <br/>
<a id="pl.31.31"></a><var>31.31</var>paragraph (f) or (g), except that:<br/>
<a id="pl.31.32"></a><var>31.32</var>(1) use taxes due on an annual use tax return as provided under section 
         <statute_ref>289A.11, <br/>
<a id="pl.31.33"></a><var>31.33</var>subdivision 1
         </statute_ref>, are payable by April 15 following the close of the calendar year; and.<br/>
<a id="pl.31.34"></a><var>31.34</var>(2) except as provided in paragraph (f), for a vendor having a liability of $120,000 <br/>
<a id="pl.31.35"></a><var>31.35</var>or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes <br/>
<a id="pl.32.1"></a><var>32.1</var>imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the <br/>
<a id="pl.32.2"></a><var>32.2</var>commissioner monthly in the following manner:<br/>
<a id="pl.32.3"></a><var>32.3</var>(i) On or before the 14th day of the month following the month in which the taxable <br/>
<a id="pl.32.4"></a><var>32.4</var>event occurred, the vendor must remit to the commissioner 90 percent of the estimated <br/>
<a id="pl.32.5"></a><var>32.5</var>liability for the month in which the taxable event occurred.<br/>
<a id="pl.32.6"></a><var>32.6</var>(ii) On or before the 20th day of the month in which the taxable event occurs, the <br/>
<a id="pl.32.7"></a><var>32.7</var>vendor must remit to the commissioner a prepayment for the month in which the taxable <br/>
<a id="pl.32.8"></a><var>32.8</var>event occurs equal to 67 percent of the liability for the previous month.<br/>
<a id="pl.32.9"></a><var>32.9</var>(iii) On or before the 20th day of the month following the month in which the taxable <br/>
<a id="pl.32.10"></a><var>32.10</var>event occurred, the vendor must pay any additional amount of tax not previously remitted <br/>
<a id="pl.32.11"></a><var>32.11</var>under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than <br/>
<a id="pl.32.12"></a><var>32.12</var>the vendor's liability for the month in which the taxable event occurred, the vendor may <br/>
<a id="pl.32.13"></a><var>32.13</var>take a credit against the next month's liability in a manner prescribed by the commissioner.<br/>
<a id="pl.32.14"></a><var>32.14</var>(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to <br/>
<a id="pl.32.15"></a><var>32.15</var>continue to make payments in the same manner, as long as the vendor continues having a <br/>
<a id="pl.32.16"></a><var>32.16</var>liability of $120,000 or more during the most recent fiscal year ending June 30.<br/>
<a id="pl.32.17"></a><var>32.17</var>(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required <br/>
<a id="pl.32.18"></a><var>32.18</var>payment in the first month that the vendor is required to make a payment under either item <br/>
<a id="pl.32.19"></a><var>32.19</var>(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make <br/>
<a id="pl.32.20"></a><var>32.20</var>subsequent monthly payments in the manner provided in item (ii).<br/>
<a id="pl.32.21"></a><var>32.21</var>(vi) For vendors making an accelerated payment under item (ii), for the first month <br/>
<a id="pl.32.22"></a><var>32.22</var>that the vendor is required to make the accelerated payment, on the 20th of that month, the <br/>
<a id="pl.32.23"></a><var>32.23</var>vendor will pay 100 percent of the liability for the previous month and a prepayment for <br/>
<a id="pl.32.24"></a><var>32.24</var>the first month equal to 67 percent of the liability for the previous month.<br/>
<a id="pl.32.25"></a><var>32.25</var>    (b) Notwithstanding paragraph (a), A vendor having a liability of $120,000 or more <br/>
<a id="pl.32.26"></a><var>32.26</var>during a fiscal year ending June 30 must remit the June liability for the next year in the <br/>
<a id="pl.32.27"></a><var>32.27</var>following manner:<br/>
<a id="pl.32.28"></a><var>32.28</var>    (1) Two business days before June 30 of the year, the vendor must remit 90 percent <br/>
<a id="pl.32.29"></a><var>32.29</var>of the estimated June liability to the commissioner.<br/>
<a id="pl.32.30"></a><var>32.30</var>    (2) On or before August 20 of the year, the vendor must pay any additional amount <br/>
<a id="pl.32.31"></a><var>32.31</var>of tax not remitted in June.<br/>
<a id="pl.32.32"></a><var>32.32</var>    (c) A vendor having a liability of:<br/>
<a id="pl.32.33"></a><var>32.33</var>    (1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30, <br/>
<a id="pl.32.34"></a><var>32.34</var>2009, and fiscal years thereafter, must remit by electronic means all liabilities on returns <br/>
<a id="pl.32.35"></a><var>32.35</var>due for periods beginning in the subsequent calendar year on or before the 20th day of <br/>
<a id="pl.32.36"></a><var>32.36</var>the month following the month in which the taxable event occurred, or on or before the <br/>
<a id="pl.33.1"></a><var>33.1</var>20th day of the month following the month in which the sale is reported under section <br/>
<statute_ref><a id="pl.33.2"></a><var>33.2</var>289A.18, subdivision 4
         </statute_ref>; or<br/>
<a id="pl.33.3"></a><var>33.3</var>(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years <br/>
<a id="pl.33.4"></a><var>33.4</var>thereafter, must remit by electronic means all liabilities in the manner provided in <br/>
<a id="pl.33.5"></a><var>33.5</var>paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar <br/>
<a id="pl.33.6"></a><var>33.6</var>year, except for 90 percent of the estimated June liability, which is due two business days <br/>
<a id="pl.33.7"></a><var>33.7</var>before June 30. The remaining amount of the June liability is due on August 20.<br/>
<a id="pl.33.8"></a><var>33.8</var>(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's <br/>
<a id="pl.33.9"></a><var>33.9</var>religious beliefs from paying electronically shall be allowed to remit the payment by mail. <br/>
<a id="pl.33.10"></a><var>33.10</var>The filer must notify the commissioner of revenue of the intent to pay by mail before <br/>
<a id="pl.33.11"></a><var>33.11</var>doing so on a form prescribed by the commissioner. No extra fee may be charged to a <br/>
<a id="pl.33.12"></a><var>33.12</var>person making payment by mail under this paragraph. The payment must be postmarked <br/>
<a id="pl.33.13"></a><var>33.13</var>at least two business days before the due date for making the payment in order to be <br/>
<a id="pl.33.14"></a><var>33.14</var>considered paid on a timely basis.<br/>
<a id="pl.33.15"></a><var>33.15</var>(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed <br/>
<a id="pl.33.16"></a><var>33.16</var>under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the <br/>
<a id="pl.33.17"></a><var>33.17</var>chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and <br/>
<a id="pl.33.18"></a><var>33.18</var>paid with the chapter 297A taxes, then the payment of all the liabilities on the return must <br/>
<a id="pl.33.19"></a><var>33.19</var>be accelerated as provided in this subdivision.<br/>
<a id="pl.33.20"></a><var>33.20</var>(f) At the start of the first calendar quarter at least 90 days after the cash flow <br/>
<a id="pl.33.21"></a><var>33.21</var>account established in section 
<statute_ref>16A.152, subdivision 1</statute_ref>, and the budget reserve account <br/>
<a id="pl.33.22"></a><var>33.22</var>established in section 
<statute_ref>16A.152, subdivision 1a</statute_ref>, reach the amounts listed in section <br/>
<a id="pl.33.23"></a><var>33.23</var><statute_ref>16A.152, subdivision 2</statute_ref>, paragraph (a), the remittance of the accelerated payments required <br/>
<a id="pl.33.24"></a><var>33.24</var>under paragraph (a), clause (2), must be suspended. The commissioner of management <br/>
<a id="pl.33.25"></a><var>33.25</var>and budget shall notify the commissioner of revenue when the accounts have reached <br/>
<a id="pl.33.26"></a><var>33.26</var>the required amounts. Beginning with the suspension of paragraph (a), clause (2), for a <br/>
<a id="pl.33.27"></a><var>33.27</var>vendor with a liability of $120,000 or more during a fiscal year ending June 30, 2009, <br/>
<a id="pl.33.28"></a><var>33.28</var>and fiscal years thereafter, the taxes imposed by chapter 297A are due and payable to the <br/>
<a id="pl.33.29"></a><var>33.29</var>commissioner on the 20th day of the month following the month in which the taxable <br/>
<a id="pl.33.30"></a><var>33.30</var>event occurred. Payments of tax liabilities for taxable events occurring in June under <br/>
<a id="pl.33.31"></a><var>33.31</var>paragraph (b) are not changed.<br/>
<a id="pl.33.32"></a><var>33.32</var><b>EFFECTIVE DATE.</b>This section is effective for taxes due and payable after <br/>
<a id="pl.33.33"></a><var>33.33</var>July 1, 2011.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.33.34"></a><var>33.34</var>    Sec. 2. Minnesota Statutes 2010, section 297A.61, subdivision 3, is amended to read:<br/>
<a id="pl.34.1"></a><var>34.1</var>    Subd. 3. <b>Sale and purchase.</b> (a) "Sale" and "purchase" include, but are not limited <br/>
<a id="pl.34.2"></a><var>34.2</var>to, each of the transactions listed in this subdivision.<br/>
<a id="pl.34.3"></a><var>34.3</var>    (b) Sale and purchase include:<br/>
<a id="pl.34.4"></a><var>34.4</var>    (1) any transfer of title or possession, or both, of tangible personal property, whether <br/>
<a id="pl.34.5"></a><var>34.5</var>absolutely or conditionally, for a consideration in money or by exchange or barter; and<br/>
<a id="pl.34.6"></a><var>34.6</var>    (2) the leasing of or the granting of a license to use or consume, for a consideration <br/>
<a id="pl.34.7"></a><var>34.7</var>in money or by exchange or barter, tangible personal property, other than a manufactured <br/>
<a id="pl.34.8"></a><var>34.8</var>home used for residential purposes for a continuous period of 30 days or more.<br/>
<a id="pl.34.9"></a><var>34.9</var>    (c) Sale and purchase include the production, fabrication, printing, or processing of <br/>
<a id="pl.34.10"></a><var>34.10</var>tangible personal property for a consideration for consumers who furnish either directly or <br/>
<a id="pl.34.11"></a><var>34.11</var>indirectly the materials used in the production, fabrication, printing, or processing.<br/>
<a id="pl.34.12"></a><var>34.12</var>    (d) Sale and purchase include the preparing for a consideration of food. <br/>
<a id="pl.34.13"></a><var>34.13</var>Notwithstanding section 
         <statute_ref>297A.67, subdivision 2</statute_ref>, taxable food includes, but is not limited <br/>
<a id="pl.34.14"></a><var>34.14</var>to, the following:<br/>
<a id="pl.34.15"></a><var>34.15</var>    (1) prepared food sold by the retailer;<br/>
<a id="pl.34.16"></a><var>34.16</var>    (2) soft drinks;<br/>
<a id="pl.34.17"></a><var>34.17</var>    (3) candy;<br/>
<a id="pl.34.18"></a><var>34.18</var>    (4) dietary supplements; and<br/>
<a id="pl.34.19"></a><var>34.19</var>    (5) all food sold through vending machines.<br/>
<a id="pl.34.20"></a><var>34.20</var>    (e) A sale and a purchase includes the furnishing for a consideration of electricity, <br/>
<a id="pl.34.21"></a><var>34.21</var>gas, water, or steam for use or consumption within this state.<br/>
<a id="pl.34.22"></a><var>34.22</var>    (f) A sale and a purchase includes the transfer for a consideration of prewritten <br/>
<a id="pl.34.23"></a><var>34.23</var>computer software whether delivered electronically, by load and leave, or otherwise.<br/>
<a id="pl.34.24"></a><var>34.24</var>    (g) A sale and a purchase includes the furnishing for a consideration of the following <br/>
<a id="pl.34.25"></a><var>34.25</var>services:<br/>
<a id="pl.34.26"></a><var>34.26</var>    (1) the privilege of admission to places of amusement, recreational areas, or athletic <br/>
<a id="pl.34.27"></a><var>34.27</var>events, and the making available of amusement devices, tanning facilities, reducing <br/>
<a id="pl.34.28"></a><var>34.28</var>salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;<br/>
<a id="pl.34.29"></a><var>34.29</var>    (2) lodging and related services by a hotel, rooming house, resort, campground, <br/>
<a id="pl.34.30"></a><var>34.30</var>motel, or trailer camp, including furnishing the guest of the facility with access to <br/>
<a id="pl.34.31"></a><var>34.31</var>telecommunication services, and the granting of any similar license to use real property <br/>
<a id="pl.34.32"></a><var>34.32</var>in a specific facility, other than the renting or leasing of it for a continuous period of <br/>
<a id="pl.34.33"></a><var>34.33</var>30 days or more under an enforceable written agreement that may not be terminated <br/>
<a id="pl.34.34"></a><var>34.34</var>without prior notice;<br/>
<a id="pl.34.35"></a><var>34.35</var>    (3) nonresidential parking services, whether on a contractual, hourly, or other <br/>
<a id="pl.34.36"></a><var>34.36</var>periodic basis, except for parking at a meter;<br/>
<a id="pl.35.1"></a><var>35.1</var>    (4) the granting of membership in a club, association, or other organization if:<br/>
<a id="pl.35.2"></a><var>35.2</var>    (i) the club, association, or other organization makes available for the use of its <br/>
<a id="pl.35.3"></a><var>35.3</var>members sports and athletic facilities, without regard to whether a separate charge is <br/>
<a id="pl.35.4"></a><var>35.4</var>assessed for use of the facilities; and<br/>
<a id="pl.35.5"></a><var>35.5</var>    (ii) use of the sports and athletic facility is not made available to the general public <br/>
<a id="pl.35.6"></a><var>35.6</var>on the same basis as it is made available to members.<br/>
<a id="pl.35.7"></a><var>35.7</var>Granting of membership means both onetime initiation fees and periodic membership <br/>
<a id="pl.35.8"></a><var>35.8</var>dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and <br/>
<a id="pl.35.9"></a><var>35.9</var>squash courts; basketball and volleyball facilities; running tracks; exercise equipment; <br/>
<a id="pl.35.10"></a><var>35.10</var>swimming pools; and other similar athletic or sports facilities;<br/>
<a id="pl.35.11"></a><var>35.11</var>    (5) delivery of aggregate materials by a third party, excluding delivery of aggregate <br/>
<a id="pl.35.12"></a><var>35.12</var>material used in road construction, and delivery of concrete block by a third party if <br/>
<a id="pl.35.13"></a><var>35.13</var>the delivery would be subject to the sales tax if provided by the seller of the concrete <br/>
<a id="pl.35.14"></a><var>35.14</var>block; and<br/>
<a id="pl.35.15"></a><var>35.15</var>    (6) services as provided in this clause:<br/>
<a id="pl.35.16"></a><var>35.16</var>    (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, <br/>
<a id="pl.35.17"></a><var>35.17</var>and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, <br/>
<a id="pl.35.18"></a><var>35.18</var>drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not <br/>
<a id="pl.35.19"></a><var>35.19</var>include services provided by coin operated facilities operated by the customer;<br/>
<a id="pl.35.20"></a><var>35.20</var>    (ii) motor vehicle washing, waxing, and cleaning services, including services <br/>
<a id="pl.35.21"></a><var>35.21</var>provided by coin operated facilities operated by the customer, and rustproofing, <br/>
<a id="pl.35.22"></a><var>35.22</var>undercoating, and towing of motor vehicles;<br/>
<a id="pl.35.23"></a><var>35.23</var>    (iii) building and residential cleaning, maintenance, and disinfecting services and <br/>
<a id="pl.35.24"></a><var>35.24</var>pest control and exterminating services;<br/>
<a id="pl.35.25"></a><var>35.25</var>    (iv) detective, security, burglar, fire alarm, and armored car services; but not <br/>
<a id="pl.35.26"></a><var>35.26</var>including services performed within the jurisdiction they serve by off-duty licensed peace <br/>
<a id="pl.35.27"></a><var>35.27</var>officers as defined in section 
         <statute_ref>626.84, subdivision 1</statute_ref>, or services provided by a nonprofit <br/>
<a id="pl.35.28"></a><var>35.28</var>organization for monitoring and electronic surveillance of persons placed on in-home <br/>
<a id="pl.35.29"></a><var>35.29</var>detention pursuant to court order or under the direction of the Minnesota Department <br/>
<a id="pl.35.30"></a><var>35.30</var>of Corrections;<br/>
<a id="pl.35.31"></a><var>35.31</var>    (v) pet grooming services;<br/>
<a id="pl.35.32"></a><var>35.32</var>    (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting <br/>
<a id="pl.35.33"></a><var>35.33</var>and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor <br/>
<a id="pl.35.34"></a><var>35.34</var>plant care; tree, bush, shrub, and stump removal, except when performed as part of a land <br/>
<a id="pl.35.35"></a><var>35.35</var>clearing contract as defined in section 
         <statute_ref>297A.68, subdivision 40</statute_ref>; and tree trimming for <br/>
<a id="pl.36.1"></a><var>36.1</var>public utility lines. Services performed under a construction contract for the installation of <br/>
<a id="pl.36.2"></a><var>36.2</var>shrubbery, plants, sod, trees, bushes, and similar items are not taxable;<br/>
<a id="pl.36.3"></a><var>36.3</var>    (vii) massages, except when provided by a licensed health care facility or <br/>
<a id="pl.36.4"></a><var>36.4</var>professional or upon written referral from a licensed health care facility or professional for <br/>
<a id="pl.36.5"></a><var>36.5</var>treatment of illness, injury, or disease; and<br/>
<a id="pl.36.6"></a><var>36.6</var>    (viii) the furnishing of lodging, board, and care services for animals in kennels and <br/>
<a id="pl.36.7"></a><var>36.7</var>other similar arrangements, but excluding veterinary and horse boarding services.<br/>
<a id="pl.36.8"></a><var>36.8</var>    In applying the provisions of this chapter, the terms "tangible personal property" <br/>
<a id="pl.36.9"></a><var>36.9</var>and "retail sale" include taxable services listed in clause (6), items (i) to (vi) and (viii), <br/>
<a id="pl.36.10"></a><var>36.10</var>and the provision of these taxable services, unless specifically provided otherwise. <br/>
<a id="pl.36.11"></a><var>36.11</var>Services performed by an employee for an employer are not taxable. Services performed <br/>
<a id="pl.36.12"></a><var>36.12</var>by a partnership or association for another partnership or association are not taxable if <br/>
<a id="pl.36.13"></a><var>36.13</var>one of the entities owns or controls more than 80 percent of the voting power of the <br/>
<a id="pl.36.14"></a><var>36.14</var>equity interest in the other entity. Services performed between members of an affiliated <br/>
<a id="pl.36.15"></a><var>36.15</var>group of corporations are not taxable. For purposes of the preceding sentence, "affiliated <br/>
<a id="pl.36.16"></a><var>36.16</var>group of corporations" means those entities that would be classified as members of an <br/>
<a id="pl.36.17"></a><var>36.17</var>affiliated group as defined under United States Code, title 26, section 1504, disregarding <br/>
<a id="pl.36.18"></a><var>36.18</var>the exclusions in section 1504(b).<br/>
<a id="pl.36.19"></a><var>36.19</var>    For purposes of clause (5), "road construction" means construction of (1) public <br/>
<a id="pl.36.20"></a><var>36.20</var>roads, (2) cartways, and (3) private roads in townships located outside of the seven-county <br/>
<a id="pl.36.21"></a><var>36.21</var>metropolitan area up to the point of the emergency response location sign.<br/>
<a id="pl.36.22"></a><var>36.22</var>    (h) A sale and a purchase includes the furnishing for a consideration of tangible <br/>
<a id="pl.36.23"></a><var>36.23</var>personal property or taxable services by the United States or any of its agencies or <br/>
<a id="pl.36.24"></a><var>36.24</var>instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political <br/>
<a id="pl.36.25"></a><var>36.25</var>subdivisions.<br/>
<a id="pl.36.26"></a><var>36.26</var>    (i) A sale and a purchase includes the furnishing for a consideration of <br/>
<a id="pl.36.27"></a><var>36.27</var>telecommunications services, ancillary services associated with telecommunication <br/>
<a id="pl.36.28"></a><var>36.28</var>services, cable television services, and direct satellite services, and ring tones. <br/>
<a id="pl.36.29"></a><var>36.29</var>Telecommunication services include, but are not limited to, the following services, <br/>
<a id="pl.36.30"></a><var>36.30</var>as defined in section 
         <statute_ref>297A.669</statute_ref>: air-to-ground radiotelephone service, mobile <br/>
<a id="pl.36.31"></a><var>36.31</var>telecommunication service, postpaid calling service, prepaid calling service, prepaid <br/>
<a id="pl.36.32"></a><var>36.32</var>wireless calling service, and private communication services. The services in this <br/>
<a id="pl.36.33"></a><var>36.33</var>paragraph are taxed to the extent allowed under federal law.<br/>
<a id="pl.36.34"></a><var>36.34</var>    (j) A sale and a purchase includes the furnishing for a consideration of installation if <br/>
<a id="pl.36.35"></a><var>36.35</var>the installation charges would be subject to the sales tax if the installation were provided <br/>
<a id="pl.36.36"></a><var>36.36</var>by the seller of the item being installed.<br/>
<a id="pl.37.1"></a><var>37.1</var>    (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer <br/>
<a id="pl.37.2"></a><var>37.2</var>to a customer when (1) the vehicle is rented by the customer for a consideration, or (2) <br/>
<a id="pl.37.3"></a><var>37.3</var>the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section <br/>
<statute_ref><a id="pl.37.4"></a><var>37.4</var>59B.02, subdivision
         </statute_ref> 11.<br/>
<a id="pl.37.5"></a><var>37.5</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.37.6"></a><var>37.6</var>June 30, 2011.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.37.7"></a><var>37.7</var>    Sec. 3. Minnesota Statutes 2010, section 297A.62, is amended by adding a subdivision <br/>
<a id="pl.37.8"></a><var>37.8</var>to read:<br/>
<a id="pl.37.9"></a><var>37.9</var>    Subd. 5. <b>Transitional period for services.</b> When there is a change in the rate of tax <br/>
<a id="pl.37.10"></a><var>37.10</var>imposed by this section, the following transitional period shall apply to the retail sale of <br/>
<a id="pl.37.11"></a><var>37.11</var>services covering a billing period starting before and ending after the statutory effective <br/>
<a id="pl.37.12"></a><var>37.12</var>date of the rate change:<br/>
<a id="pl.37.13"></a><var>37.13</var>(1) for a rate increase, the new rate shall apply to the first billing period starting <br/>
<a id="pl.37.14"></a><var>37.14</var>on or after the effective date; and<br/>
<a id="pl.37.15"></a><var>37.15</var>(2) for a rate decrease, the new rate shall apply to bills rendered on or after the <br/>
<a id="pl.37.16"></a><var>37.16</var>effective date.<br/>
<a id="pl.37.17"></a><var>37.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.37.18"></a><var>37.18</var>    Sec. 4. Minnesota Statutes 2010, section 297A.63, is amended by adding a subdivision <br/>
<a id="pl.37.19"></a><var>37.19</var>to read:<br/>
<a id="pl.37.20"></a><var>37.20</var>    Subd. 3. <b>Transitional period for services.</b> When there is a change in the rate of <br/>
<a id="pl.37.21"></a><var>37.21</var>tax imposed by this section, the following transitional period shall apply to the taxable <br/>
<a id="pl.37.22"></a><var>37.22</var>services purchased for use, storage, distribution, or consumption in this state when the <br/>
<a id="pl.37.23"></a><var>37.23</var>service purchased covers a billing period starting before and ending after the statutory <br/>
<a id="pl.37.24"></a><var>37.24</var>effective date of the rate change:<br/>
<a id="pl.37.25"></a><var>37.25</var>(1) for a rate increase, the new rate shall apply to the first billing period starting <br/>
<a id="pl.37.26"></a><var>37.26</var>on or after the effective date; and<br/>
<a id="pl.37.27"></a><var>37.27</var>(2) for a rate decrease, the new rate shall apply to bills rendered on or after the <br/>
<a id="pl.37.28"></a><var>37.28</var>effective date.<br/>
<a id="pl.37.29"></a><var>37.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.37.30"></a><var>37.30</var>    Sec. 5. Minnesota Statutes 2010, section 297A.668, subdivision 7, is amended to read:<br/>
<a id="pl.37.31"></a><var>37.31</var>    Subd. 7. <b>Advertising and promotional </b><b>direct mail.</b> (a) Notwithstanding other <br/>
<a id="pl.37.32"></a><var>37.32</var>subdivisions of this section, the provisions in paragraphs (b) to (e) apply to the sale of <br/>
<a id="pl.38.1"></a><var>38.1</var>advertising and promotional direct mail. "Advertising and promotional direct mail" means <br/>
<a id="pl.38.2"></a><var>38.2</var>printed material that is direct mail as defined in section 297A.61, subdivision 35, the <br/>
<a id="pl.38.3"></a><var>38.3</var>primary purpose of which is to attract public attention to a product, person, business, or <br/>
<a id="pl.38.4"></a><var>38.4</var>organization, or to attempt to sell, popularize, or secure financial support for a person, <br/>
<a id="pl.38.5"></a><var>38.5</var>business, organization, or product. "Product" includes tangible personal property, a digital <br/>
<a id="pl.38.6"></a><var>38.6</var>product transferred electronically, or a service.<br/>
<a id="pl.38.7"></a><var>38.7</var>(b) A purchaser of advertising and promotional direct mail that is not a holder of <br/>
<a id="pl.38.8"></a><var>38.8</var>a direct pay permit shall provide to the seller, in conjunction with the purchase, either a <br/>
<a id="pl.38.9"></a><var>38.9</var>direct mail form or may provide the seller with either:<br/>
<a id="pl.38.10"></a><var>38.10</var>(1) a fully completed exemption certificate as described in section 297A.72 <br/>
<a id="pl.38.11"></a><var>38.11</var>indicating that the purchaser is authorized to pay any sales or use tax due on purchases <br/>
<a id="pl.38.12"></a><var>38.12</var>made by the purchaser directly to the commissioner under section 297A.89;<br/>
<a id="pl.38.13"></a><var>38.13</var>(2) a fully completed exemption certificate claiming an exemption for direct mail; or<br/>
<a id="pl.38.14"></a><var>38.14</var>(3) information to show showing the jurisdictions to which the advertising and <br/>
<a id="pl.38.15"></a><var>38.15</var>promotional direct mail is to be delivered to recipients.<br/>
<a id="pl.38.16"></a><var>38.16</var>(1) Upon receipt of the direct mail form, (c) In the absence of bad faith, if the <br/>
<a id="pl.38.17"></a><var>38.17</var>purchaser provides one of the exemption certificates indicated in paragraph (b), clauses (1) <br/>
<a id="pl.38.18"></a><var>38.18</var>and (2), the seller is relieved of all obligations to collect, pay, or remit the applicable tax <br/>
<a id="pl.38.19"></a><var>38.19</var>and the purchaser is obligated to pay or remit the applicable tax on a direct pay basis. A <br/>
<a id="pl.38.20"></a><var>38.20</var>direct mail form remains in effect for all future sales of direct mail by the seller to the <br/>
<a id="pl.38.21"></a><var>38.21</var>purchaser until it is revoked in writing. tax on any transaction involving advertising and <br/>
<a id="pl.38.22"></a><var>38.22</var>promotional direct mail to which the certificate applies. The purchaser shall source the <br/>
<a id="pl.38.23"></a><var>38.23</var>sale to the jurisdictions to which the advertising and promotional direct mail is to be <br/>
<a id="pl.38.24"></a><var>38.24</var>delivered to the recipients of the mail, and shall report and pay any applicable tax due.<br/>
<a id="pl.38.25"></a><var>38.25</var>(2) Upon receipt of (d) If the purchaser provides the seller information from the <br/>
<a id="pl.38.26"></a><var>38.26</var>purchaser showing the jurisdictions to which the advertising and promotional direct mail <br/>
<a id="pl.38.27"></a><var>38.27</var>is to be delivered to recipients, the seller shall source the sale to the jurisdictions to which <br/>
<a id="pl.38.28"></a><var>38.28</var>the advertising and promotional direct mail is to be delivered and shall collect and remit <br/>
<a id="pl.38.29"></a><var>38.29</var>the applicable tax according to the delivery information provided by the purchaser. In <br/>
<a id="pl.38.30"></a><var>38.30</var>the absence of bad faith, the seller is relieved of any further obligation to collect any <br/>
<a id="pl.38.31"></a><var>38.31</var>additional tax on any transaction for which the sale of advertising and promotional direct <br/>
<a id="pl.38.32"></a><var>38.32</var>mail where the seller has collected tax pursuant sourced the sale according to the delivery <br/>
<a id="pl.38.33"></a><var>38.33</var>information provided by the purchaser.<br/>
<a id="pl.38.34"></a><var>38.34</var>(b) (e) If the purchaser of direct mail does not have a direct pay permit and does <br/>
<a id="pl.38.35"></a><var>38.35</var>not provide the seller with either a direct mail form or delivery information, as required <br/>
<a id="pl.38.36"></a><var>38.36</var>by paragraph (a), the seller shall collect the tax according to any of the items listed in <br/>
<a id="pl.39.1"></a><var>39.1</var>paragraph (b), the sale shall be sourced under subdivision 2, paragraph (f). Nothing in <br/>
<a id="pl.39.2"></a><var>39.2</var>this paragraph limits a purchaser's obligation for sales or use tax to any state to which the <br/>
<a id="pl.39.3"></a><var>39.3</var>direct mail is delivered.<br/>
<a id="pl.39.4"></a><var>39.4</var>(c) If a purchaser of direct mail provides the seller with documentation of direct <br/>
<a id="pl.39.5"></a><var>39.5</var>pay authority, the purchaser is not required to provide a direct mail form or delivery <br/>
<a id="pl.39.6"></a><var>39.6</var>information to the seller.<br/>
<a id="pl.39.7"></a><var>39.7</var>(f) This subdivision does not apply to printed materials that result from developing <br/>
<a id="pl.39.8"></a><var>39.8</var>billing information or providing any data processing service that is more than incidental <br/>
<a id="pl.39.9"></a><var>39.9</var>to producing the printed materials, regardless of whether advertising and promotional <br/>
<a id="pl.39.10"></a><var>39.10</var>direct mail is included in the same mailing.<br/>
<a id="pl.39.11"></a><var>39.11</var>(g) If a transaction is a bundled transaction that includes advertising and promotional <br/>
<a id="pl.39.12"></a><var>39.12</var>direct mail, this subdivision applies only if the primary purpose of the transaction is the sale <br/>
<a id="pl.39.13"></a><var>39.13</var>of products or services that meet the definition of advertising and promotional direct mail.<br/>
<a id="pl.39.14"></a><var>39.14</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.39.15"></a><var>39.15</var>June 30, 2011.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.39.16"></a><var>39.16</var>    Sec. 6. Minnesota Statutes 2010, section 297A.668, is amended by adding a <br/>
<a id="pl.39.17"></a><var>39.17</var>subdivision to read:<br/>
<a id="pl.39.18"></a><var>39.18</var>    Subd. 7a. <b>Other direct mail.</b> (a) Notwithstanding other subdivisions of this section, <br/>
<a id="pl.39.19"></a><var>39.19</var>the provisions in paragraphs (b) and (c) apply to the sale of other direct mail. "Other direct <br/>
<a id="pl.39.20"></a><var>39.20</var>mail" means printed material that is direct mail as defined in section 297A.61, subdivision <br/>
<a id="pl.39.21"></a><var>39.21</var>35, but is not advertising and promotional direct mail as described in subdivision 7, <br/>
<a id="pl.39.22"></a><var>39.22</var>regardless of whether advertising and promotional direct mail is included in the same <br/>
<a id="pl.39.23"></a><var>39.23</var>mailing. Other direct mail includes, but is not limited to:<br/>
<a id="pl.39.24"></a><var>39.24</var>(1) direct mail pertaining to a transaction between the purchaser and addressee, <br/>
<a id="pl.39.25"></a><var>39.25</var>where the mail contains personal information specific to the addressee including, but not <br/>
<a id="pl.39.26"></a><var>39.26</var>limited to, invoices, bills, statements of account, and payroll advices;<br/>
<a id="pl.39.27"></a><var>39.27</var>(2) any legally required mailings including, but not limited to, privacy notices, <br/>
<a id="pl.39.28"></a><var>39.28</var>tax reports, and stockholder reports; and<br/>
<a id="pl.39.29"></a><var>39.29</var>(3) other nonpromotional direct mail delivered to existing or former shareholders, <br/>
<a id="pl.39.30"></a><var>39.30</var>customers, employees, or agents including, but not limited to, newsletters and <br/>
<a id="pl.39.31"></a><var>39.31</var>informational pieces.<br/>
<a id="pl.39.32"></a><var>39.32</var>Other direct mail does not include printed materials that result from developing <br/>
<a id="pl.39.33"></a><var>39.33</var>billing information or providing any data processing service that is more than incidental to <br/>
<a id="pl.39.34"></a><var>39.34</var>producing the other direct mail.<br/>
<a id="pl.40.1"></a><var>40.1</var>(b) A purchaser of other direct mail may provide the seller with either a fully <br/>
<a id="pl.40.2"></a><var>40.2</var>completed exemption certificate as described in section 297A.72 indicating that the <br/>
<a id="pl.40.3"></a><var>40.3</var>purchaser is authorized to pay any sales or use tax due on purchases made by the purchaser <br/>
<a id="pl.40.4"></a><var>40.4</var>directly to the commissioner under section 297A.89, or a fully completed exemption <br/>
<a id="pl.40.5"></a><var>40.5</var>certificate claiming an exemption for direct mail. If the purchaser provides one of the <br/>
<a id="pl.40.6"></a><var>40.6</var>exemption certificates listed, then the seller, in the absence of bad faith, is relieved of all <br/>
<a id="pl.40.7"></a><var>40.7</var>obligations to collect, pay, or remit the tax on any transaction involving other direct mail <br/>
<a id="pl.40.8"></a><var>40.8</var>to which the certificate applies. The purchaser shall source the sale to the jurisdictions to <br/>
<a id="pl.40.9"></a><var>40.9</var>which the other direct mail is to be delivered to the recipients of the mail, and shall report <br/>
<a id="pl.40.10"></a><var>40.10</var>and pay any applicable tax due.<br/>
<a id="pl.40.11"></a><var>40.11</var>(c) If the purchaser does not provide the seller with a fully completed exemption <br/>
<a id="pl.40.12"></a><var>40.12</var>certificate claiming either exemption listed in paragraph (b), the sale shall be sourced <br/>
<a id="pl.40.13"></a><var>40.13</var>according to subdivision 2, paragraph (d).<br/>
<a id="pl.40.14"></a><var>40.14</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.40.15"></a><var>40.15</var>June 30, 2011.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.40.16"></a><var>40.16</var>    Sec. 7. Minnesota Statutes 2010, section 297A.68, is amended by adding a subdivision <br/>
<a id="pl.40.17"></a><var>40.17</var>to read:<br/>
<a id="pl.40.18"></a><var>40.18</var>    Subd. 42. <b>Resold admission tickets.</b> (a) When a ticket reseller who purchased <br/>
<a id="pl.40.19"></a><var>40.19</var>a ticket from a seller who is in the business of selling tickets resells the ticket, the <br/>
<a id="pl.40.20"></a><var>40.20</var>ticket reseller must charge tax on the total amount for which the ticket is resold and the <br/>
<a id="pl.40.21"></a><var>40.21</var>following rules apply:<br/>
<a id="pl.40.22"></a><var>40.22</var>(1) if the ticket reseller did not use a fully completed exemption certificate to claim <br/>
<a id="pl.40.23"></a><var>40.23</var>the exemption from tax for resale, but instead paid tax on the original purchase, then the <br/>
<a id="pl.40.24"></a><var>40.24</var>ticket reseller may do one of the following:<br/>
<a id="pl.40.25"></a><var>40.25</var>(i) seek a refund of that tax under section 289A.50; or<br/>
<a id="pl.40.26"></a><var>40.26</var>(ii) pass through to the purchaser the amount of the tax the ticket reseller paid on <br/>
<a id="pl.40.27"></a><var>40.27</var>the original purchase, by giving the purchaser credit for the Minnesota state and local tax <br/>
<a id="pl.40.28"></a><var>40.28</var>paid by the ticket reseller on the ticket reseller's original purchase of the ticket. Credit <br/>
<a id="pl.40.29"></a><var>40.29</var>for the tax cannot exceed either the sales tax paid on the original price of the ticket or the <br/>
<a id="pl.40.30"></a><var>40.30</var>sales tax charged by the ticket reseller to the final purchaser;<br/>
<a id="pl.40.31"></a><var>40.31</var>(2) if the ticket reseller did not pay tax on the original purchase, tax is due on the full <br/>
<a id="pl.40.32"></a><var>40.32</var>amount of the ticket when resold, without a credit given to the final purchaser; or<br/>
<a id="pl.40.33"></a><var>40.33</var>(3) the ticket reseller must retain records documenting the price and tax paid by the <br/>
<a id="pl.40.34"></a><var>40.34</var>ticket reseller when purchasing the ticket and the price and tax collected when the ticket <br/>
<a id="pl.40.35"></a><var>40.35</var>reseller resells the ticket.<br/>
<a id="pl.41.1"></a><var>41.1</var>(b) When a ticket reseller who purchased a ticket from a seller who is not in the <br/>
<a id="pl.41.2"></a><var>41.2</var>business of selling tickets resells the ticket, the ticket reseller must charge tax on the total <br/>
<a id="pl.41.3"></a><var>41.3</var>amount for which the ticket is resold and the following rules apply:<br/>
<a id="pl.41.4"></a><var>41.4</var>(1) the ticket reseller may credit its purchaser an amount equal to the tax the ticket <br/>
<a id="pl.41.5"></a><var>41.5</var>reseller would have paid its seller, had the seller been registered to collect tax on its <br/>
<a id="pl.41.6"></a><var>41.6</var>sale of the ticket to the ticket reseller. Credit for the tax cannot exceed either the sales <br/>
<a id="pl.41.7"></a><var>41.7</var>tax paid on the original price of the ticket or the sales tax charged by the ticket reseller <br/>
<a id="pl.41.8"></a><var>41.8</var>to the final purchaser. It is presumed that the original purchase price of the ticket is the <br/>
<a id="pl.41.9"></a><var>41.9</var>face amount of the ticket;<br/>
<a id="pl.41.10"></a><var>41.10</var>(2) if no tax was paid on the original purchase, tax is due on the full amount of the <br/>
<a id="pl.41.11"></a><var>41.11</var>ticket when resold, without a credit given to the ticket reseller's purchaser; and<br/>
<a id="pl.41.12"></a><var>41.12</var>(3) the ticket reseller must retain records documenting the price and tax paid by the <br/>
<a id="pl.41.13"></a><var>41.13</var>ticket reseller when purchasing the ticket and the price and tax collected when the ticket <br/>
<a id="pl.41.14"></a><var>41.14</var>reseller resells the ticket.<br/>
<a id="pl.41.15"></a><var>41.15</var>(c) For purposes of this subdivision, "ticket reseller" means a person who:<br/>
<a id="pl.41.16"></a><var>41.16</var>(1) purchases admission tickets to a sporting event, theater, musical performance, or <br/>
<a id="pl.41.17"></a><var>41.17</var>place of public entertainment or amusement of any kind;<br/>
<a id="pl.41.18"></a><var>41.18</var>(2) resells admission tickets to events under clause (1); and<br/>
<a id="pl.41.19"></a><var>41.19</var>(3) is registered to collect tax under this chapter.<br/>
<a id="pl.41.20"></a><var>41.20</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.41.21"></a><var>41.21</var>June 30, 2011.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.41.22"></a><var>41.22</var>    Sec. 8. Minnesota Statutes 2010, section 297A.70, subdivision 1, is amended to read:<br/>
<a id="pl.41.23"></a><var>41.23</var>    Subdivision 1. <b>Scope.</b> (a) To the extent provided in this section, the gross receipts <br/>
<a id="pl.41.24"></a><var>41.24</var>from sales of items to or by, and storage, distribution, use, or consumption of items by the <br/>
<a id="pl.41.25"></a><var>41.25</var>organizations or units of local government listed in this section are specifically exempted <br/>
<a id="pl.41.26"></a><var>41.26</var>from the taxes imposed by this chapter.<br/>
<a id="pl.41.27"></a><var>41.27</var>(b) Notwithstanding any law to the contrary enacted before 1992, only sales to <br/>
<a id="pl.41.28"></a><var>41.28</var>governments and political subdivisions listed in this section are exempt from the taxes <br/>
<a id="pl.41.29"></a><var>41.29</var>imposed by this chapter.<br/>
<a id="pl.41.30"></a><var>41.30</var>(c) "Sales" includes purchases under an installment contract or lease purchase <br/>
<a id="pl.41.31"></a><var>41.31</var>agreement under section 
         <statute_ref>465.71</statute_ref>.<br/>
<a id="pl.41.32"></a><var>41.32</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.41.33"></a><var>41.33</var>June 30, 2011.<br/>
<br/>
<a id="bill.3.9.0"></a><a id="pl.42.1"></a><var>42.1</var>    Sec. 9. Minnesota Statutes 2010, section 297A.70, subdivision 2, is amended to read:<br/>
<a id="pl.42.2"></a><var>42.2</var>    Subd. 2. <b>Sales to government.</b> (a) All sales, except those listed in paragraph (b), <br/>
<a id="pl.42.3"></a><var>42.3</var>to the following governments and political subdivisions, or to the listed agencies or <br/>
<a id="pl.42.4"></a><var>42.4</var>instrumentalities of governments and political subdivisions, are exempt:<br/>
<a id="pl.42.5"></a><var>42.5</var>(1) the United States and its agencies and instrumentalities;<br/>
<a id="pl.42.6"></a><var>42.6</var>(2) school districts, the University of Minnesota, state universities, community <br/>
<a id="pl.42.7"></a><var>42.7</var>colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts <br/>
<a id="pl.42.8"></a><var>42.8</var>Education, and an instrumentality of a political subdivision that is accredited as an <br/>
<a id="pl.42.9"></a><var>42.9</var>optional/special function school by the North Central Association of Colleges and Schools;<br/>
<a id="pl.42.10"></a><var>42.10</var>(3) hospitals and nursing homes owned and operated by political subdivisions of <br/>
<a id="pl.42.11"></a><var>42.11</var>the state of tangible personal property and taxable services used at or by hospitals and <br/>
<a id="pl.42.12"></a><var>42.12</var>nursing homes;<br/>
<a id="pl.42.13"></a><var>42.13</var>(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip <br/>
<a id="pl.42.14"></a><var>42.14</var>operations provided for in section 
         <statute_ref>473.4051</statute_ref>;<br/>
<a id="pl.42.15"></a><var>42.15</var>(5) other states or political subdivisions of other states, if the sale would be exempt <br/>
<a id="pl.42.16"></a><var>42.16</var>from taxation if it occurred in that state; and<br/>
<a id="pl.42.17"></a><var>42.17</var>(6) sales to public libraries, public library systems, multicounty, multitype library <br/>
<a id="pl.42.18"></a><var>42.18</var>systems as defined in section 
         <statute_ref>134.001</statute_ref>, county law libraries under chapter 134A, state <br/>
<a id="pl.42.19"></a><var>42.19</var>agency libraries, the state library under section 
         <statute_ref>480.09</statute_ref>, and the Legislative Reference <br/>
<a id="pl.42.20"></a><var>42.20</var>Library; and<br/>
<a id="pl.42.21"></a><var>42.21</var>(7) towns.<br/>
<a id="pl.42.22"></a><var>42.22</var>(b) This exemption does not apply to the sales of the following products and services:<br/>
<a id="pl.42.23"></a><var>42.23</var>(1) building, construction, or reconstruction materials purchased by a contractor <br/>
<a id="pl.42.24"></a><var>42.24</var>or a subcontractor as a part of a lump-sum contract or similar type of contract with a <br/>
<a id="pl.42.25"></a><var>42.25</var>guaranteed maximum price covering both labor and materials for use in the construction, <br/>
<a id="pl.42.26"></a><var>42.26</var>alteration, or repair of a building or facility;<br/>
<a id="pl.42.27"></a><var>42.27</var>(2) construction materials purchased by tax exempt entities or their contractors to <br/>
<a id="pl.42.28"></a><var>42.28</var>be used in constructing buildings or facilities which will not be used principally by the <br/>
<a id="pl.42.29"></a><var>42.29</var>tax exempt entities;<br/>
<a id="pl.42.30"></a><var>42.30</var>(3) the leasing of a motor vehicle as defined in section 
         <statute_ref>297B.01, subdivision 11</statute_ref>, <br/>
<a id="pl.42.31"></a><var>42.31</var>except for leases entered into by the United States or its agencies or instrumentalities; or<br/>
<a id="pl.42.32"></a><var>42.32</var>(4) lodging as defined under section 
         <statute_ref>297A.61, subdivision 3</statute_ref>, paragraph (g), <br/>
<a id="pl.42.33"></a><var>42.33</var>clause (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in <br/>
<a id="pl.42.34"></a><var>42.34</var>section 
         <statute_ref>297A.67, subdivision 2</statute_ref>, except for lodging, prepared food, candy, soft drinks, <br/>
<a id="pl.42.35"></a><var>42.35</var>and alcoholic beverages purchased directly by the United States or its agencies or <br/>
<a id="pl.42.36"></a><var>42.36</var>instrumentalities; or  <br/>
<a id="pl.43.1"></a><var>43.1</var>(5) goods or services purchased by a town that are generally provided by a private <br/>
<a id="pl.43.2"></a><var>43.2</var>business and the purchases would be taxable if made by a private business engaged in the <br/>
<a id="pl.43.3"></a><var>43.3</var>same activity.<br/>
<a id="pl.43.4"></a><var>43.4</var>(c) As used in this subdivision, "school districts" means public school entities and <br/>
<a id="pl.43.5"></a><var>43.5</var>districts of every kind and nature organized under the laws of the state of Minnesota, and <br/>
<a id="pl.43.6"></a><var>43.6</var>any instrumentality of a school district, as defined in section 
         <statute_ref>471.59</statute_ref>.<br/>
<a id="pl.43.7"></a><var>43.7</var>(d) As used in this subdivision, "goods or services generally provided by a private <br/>
<a id="pl.43.8"></a><var>43.8</var>business" include, but are not limited to, goods or services provided by liquor stores, gas <br/>
<a id="pl.43.9"></a><var>43.9</var>and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes, <br/>
<a id="pl.43.10"></a><var>43.10</var>and laundromats. "Goods or services generally provided by a private business" do not <br/>
<a id="pl.43.11"></a><var>43.11</var>include housing services, sewer and water services, wastewater treatment, ambulance and <br/>
<a id="pl.43.12"></a><var>43.12</var>other public safety services, correctional services, chore or homemaking services provided <br/>
<a id="pl.43.13"></a><var>43.13</var>to elderly or disabled individuals, or road and street maintenance or lighting.<br/>
<a id="pl.43.14"></a><var>43.14</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.43.15"></a><var>43.15</var>June 30, 2011.<br/>
<br/>
<a id="bill.3.10.0"></a><a id="pl.43.16"></a><var>43.16</var>    Sec. 10. Minnesota Statutes 2010, section 297A.70, subdivision 3, is amended to read:<br/>
<a id="pl.43.17"></a><var>43.17</var>    Subd. 3. <b>Sales of certain goods and services to government.</b> (a) The following <br/>
<a id="pl.43.18"></a><var>43.18</var>sales to or use by the specified governments and political subdivisions of the state are <br/>
<a id="pl.43.19"></a><var>43.19</var>exempt:<br/>
<a id="pl.43.20"></a><var>43.20</var>    (1) repair and replacement parts for emergency rescue vehicles, fire trucks, and <br/>
<a id="pl.43.21"></a><var>43.21</var>fire apparatus to a political subdivision;<br/>
<a id="pl.43.22"></a><var>43.22</var>    (2) machinery and equipment, except for motor vehicles, used directly for mixed <br/>
<a id="pl.43.23"></a><var>43.23</var>municipal solid waste management services at a solid waste disposal facility as defined in <br/>
<a id="pl.43.24"></a><var>43.24</var>section 
         <statute_ref>115A.03, subdivision 10</statute_ref>;<br/>
<a id="pl.43.25"></a><var>43.25</var>    (3) chore and homemaking services to a political subdivision of the state to be <br/>
<a id="pl.43.26"></a><var>43.26</var>provided to elderly or disabled individuals;<br/>
<a id="pl.43.27"></a><var>43.27</var>    (4) telephone services to the Office of Enterprise Technology that are used to provide <br/>
<a id="pl.43.28"></a><var>43.28</var>telecommunications services through the enterprise technology revolving fund;<br/>
<a id="pl.43.29"></a><var>43.29</var>    (5) firefighter personal protective equipment as defined in paragraph (b), if purchased <br/>
<a id="pl.43.30"></a><var>43.30</var>or authorized by and for the use of an organized fire department, fire protection district, or <br/>
<a id="pl.43.31"></a><var>43.31</var>fire company regularly charged with the responsibility of providing fire protection to the <br/>
<a id="pl.43.32"></a><var>43.32</var>state or a political subdivision;<br/>
<a id="pl.43.33"></a><var>43.33</var>    (6) bullet-resistant body armor that provides the wearer with ballistic and trauma <br/>
<a id="pl.43.34"></a><var>43.34</var>protection, if purchased by a law enforcement agency of the state or a political subdivision <br/>
<a id="pl.43.35"></a><var>43.35</var>of the state, or a licensed peace officer, as defined in section 
         <statute_ref>626.84, subdivision 1</statute_ref>;<br/>
<a id="pl.44.1"></a><var>44.1</var>    (7) motor vehicles purchased or leased by political subdivisions of the state if the <br/>
<a id="pl.44.2"></a><var>44.2</var>vehicles are exempt from registration under section 
         <statute_ref>168.012, subdivision 1</statute_ref>, paragraph (b), <br/>
<a id="pl.44.3"></a><var>44.3</var>exempt from taxation under section 
         <statute_ref>473.448</statute_ref>, or exempt from the motor vehicle sales tax <br/>
<a id="pl.44.4"></a><var>44.4</var>under section 
         <statute_ref>297B.03</statute_ref>, clause (12);<br/>
<a id="pl.44.5"></a><var>44.5</var>    (8) equipment designed to process, dewater, and recycle biosolids for wastewater <br/>
<a id="pl.44.6"></a><var>44.6</var>treatment facilities of political subdivisions, and materials incidental to installation of <br/>
<a id="pl.44.7"></a><var>44.7</var>that equipment;<br/>
<a id="pl.44.8"></a><var>44.8</var>    (9) sales to a town of gravel and of machinery, equipment, and accessories, except <br/>
<a id="pl.44.9"></a><var>44.9</var>motor vehicles, used exclusively for road and bridge maintenance, and leases by a town of <br/>
<a id="pl.44.10"></a><var>44.10</var>motor vehicles exempt from tax under section 
<statute_ref>297B.03</statute_ref>, clause (10);<br/>
<a id="pl.44.11"></a><var>44.11</var>    (10) the removal of trees, bushes, or shrubs for the construction and maintenance <br/>
<a id="pl.44.12"></a><var>44.12</var>of roads, trails, or firebreaks when purchased by an agency of the state or a political <br/>
<a id="pl.44.13"></a><var>44.13</var>subdivision of the state; and<br/>
<a id="pl.44.14"></a><var>44.14</var>    (11) (10) purchases by the Metropolitan Council or the Department of Transportation <br/>
<a id="pl.44.15"></a><var>44.15</var>of vehicles and repair parts to equip operations provided for in section 
         <statute_ref>174.90</statute_ref>, including, <br/>
<a id="pl.44.16"></a><var>44.16</var>but not limited to, the Northstar Corridor Rail project.; and<br/>
<a id="pl.44.17"></a><var>44.17</var>(11) purchases of water used directly in providing public safety services by an <br/>
<a id="pl.44.18"></a><var>44.18</var>organized fire department, fire protection district, or fire company regularly charged with <br/>
<a id="pl.44.19"></a><var>44.19</var>the responsibility of providing fire protection to the state or a political subdivision.<br/>
<a id="pl.44.20"></a><var>44.20</var>    (b) For purposes of this subdivision, "firefighters personal protective equipment" <br/>
<a id="pl.44.21"></a><var>44.21</var>means helmets, including face shields, chin straps, and neck liners; bunker coats and <br/>
<a id="pl.44.22"></a><var>44.22</var>pants, including pant suspenders; boots; gloves; head covers or hoods; wildfire jackets; <br/>
<a id="pl.44.23"></a><var>44.23</var>protective coveralls; goggles; self-contained breathing apparatus; canister filter masks; <br/>
<a id="pl.44.24"></a><var>44.24</var>personal alert safety systems; spanner belts; optical or thermal imaging search devices; <br/>
<a id="pl.44.25"></a><var>44.25</var>and all safety equipment required by the Occupational Safety and Health Administration.<br/>
<a id="pl.44.26"></a><var>44.26</var>    (c) For purchases of items listed in paragraph (a), clause (11), the tax must be <br/>
<a id="pl.44.27"></a><var>44.27</var>imposed and collected as if the rate under section 
         <statute_ref>297A.62, subdivision 1</statute_ref>, applied and <br/>
<a id="pl.44.28"></a><var>44.28</var>then refunded in the manner provided in section 
         <statute_ref>297A.75</statute_ref>.<br/>
<a id="pl.44.29"></a><var>44.29</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.44.30"></a><var>44.30</var>June 30, 2011, except that the new clause (11) is effective retroactively for sales and <br/>
<a id="pl.44.31"></a><var>44.31</var>purchases made after June 30, 2007; however, for purposes of the new clause (11), <br/>
<a id="pl.44.32"></a><var>44.32</var>no refunds may be made for amounts already paid on water purchased between June <br/>
<a id="pl.44.33"></a><var>44.33</var>30, 2007, and January 30, 2010.<br/>
<br/>
<a id="bill.3.11.0"></a><a id="pl.44.34"></a><var>44.34</var>    Sec. 11. Minnesota Statutes 2010, section 297A.70, subdivision 8, is amended to read:<br/>
<a id="pl.45.1"></a><var>45.1</var>    Subd. 8. <b>Regionwide</b><b> Public safety radio communication </b><b>system</b><b> systems</b><b>; </b><br/>
<a id="pl.45.2"></a><var>45.2</var><b>products and services.</b> Products and services including, but not limited to, end user <br/>
<a id="pl.45.3"></a><var>45.3</var>equipment used for construction, ownership, operation, maintenance, and enhancement <br/>
<a id="pl.45.4"></a><var>45.4</var>of the backbone system of the regionwide public safety radio communication system <br/>
<a id="pl.45.5"></a><var>45.5</var>established under sections 
<statute_ref>403.21</statute_ref> to 
<statute_ref>403.40</statute_ref> systems, including public safety radio <br/>
<a id="pl.45.6"></a><var>45.6</var>dispatch centers, are exempt. For purposes of this subdivision, backbone system is defined <br/>
<a id="pl.45.7"></a><var>45.7</var>in section 
<statute_ref>403.21, subdivision 9</statute_ref>. This subdivision is effective for purchases, sales, storage, <br/>
<a id="pl.45.8"></a><var>45.8</var>use, or consumption for use in the first and second phases of the system, as defined in <br/>
<a id="pl.45.9"></a><var>45.9</var>section 
<statute_ref>403.21, subdivisions 3, 10, and 11</statute_ref>, that portion of the third phase of the system that <br/>
<a id="pl.45.10"></a><var>45.10</var>is located in the southeast district of the State Patrol and the counties of Benton, Sherburne, <br/>
<a id="pl.45.11"></a><var>45.11</var>Stearns, and Wright, and that portion of the system that is located in Itasca County.<br/>
<a id="pl.45.12"></a><var>45.12</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.45.13"></a><var>45.13</var>December 31, 2009. After July 1, 2013, purchasers may apply for a refund of tax paid for <br/>
<a id="pl.45.14"></a><var>45.14</var>qualifying purchases under this subdivision made after December 31, 2009, and before <br/>
<a id="pl.45.15"></a><var>45.15</var>July 1, 2013, in the manner provided in section 297A.75.<br/>
<br/>
<a id="bill.3.12.0"></a><a id="pl.45.16"></a><var>45.16</var>    Sec. 12. Minnesota Statutes 2010, section 297A.75, subdivision 1, is amended to read:<br/>
<a id="pl.45.17"></a><var>45.17</var>    Subdivision 1. <b>Tax collected.</b> The tax on the gross receipts from the sale of the <br/>
<a id="pl.45.18"></a><var>45.18</var>following exempt items must be imposed and collected as if the sale were taxable and the <br/>
<a id="pl.45.19"></a><var>45.19</var>rate under section 
         <statute_ref>297A.62, subdivision 1</statute_ref>, applied. The exempt items include:<br/>
<a id="pl.45.20"></a><var>45.20</var>    (1) capital equipment exempt under section 
         <statute_ref>297A.68, subdivision 5</statute_ref>;<br/>
<a id="pl.45.21"></a><var>45.21</var>    (2) building materials for an agricultural processing facility exempt under section <br/>
<statute_ref><a id="pl.45.22"></a><var>45.22</var>297A.71, subdivision 13
         </statute_ref>;<br/>
<a id="pl.45.23"></a><var>45.23</var>    (3) building materials for mineral production facilities exempt under section <br/>
<statute_ref><a id="pl.45.24"></a><var>45.24</var>297A.71, subdivision 14
         </statute_ref>;<br/>
<a id="pl.45.25"></a><var>45.25</var>    (4) building materials for correctional facilities under section 
         <statute_ref>297A.71, subdivision <br/>
<a id="pl.45.26"></a><var>45.26</var>3
         </statute_ref>;<br/>
<a id="pl.45.27"></a><var>45.27</var>    (5) building materials used in a residence for disabled veterans exempt under section <br/>
<statute_ref><a id="pl.45.28"></a><var>45.28</var>297A.71, subdivision 11
         </statute_ref>;<br/>
<a id="pl.45.29"></a><var>45.29</var>    (6) elevators and building materials exempt under section 
         <statute_ref>297A.71, subdivision 12</statute_ref>;<br/>
<a id="pl.45.30"></a><var>45.30</var>    (7) building materials for the Long Lake Conservation Center exempt under section <br/>
<statute_ref><a id="pl.45.31"></a><var>45.31</var>297A.71, subdivision 17
         </statute_ref>;<br/>
<a id="pl.45.32"></a><var>45.32</var>    (8) materials and supplies for qualified low-income housing under section 
         <statute_ref>297A.71, <br/>
<a id="pl.45.33"></a><var>45.33</var>subdivision 23
         </statute_ref>;<br/>
<a id="pl.45.34"></a><var>45.34</var>    (9) materials, supplies, and equipment for municipal electric utility facilities under <br/>
<a id="pl.45.35"></a><var>45.35</var>section 
         <statute_ref>297A.71, subdivision 35</statute_ref>;<br/>
<a id="pl.46.1"></a><var>46.1</var>    (10) equipment and materials used for the generation, transmission, and distribution <br/>
<a id="pl.46.2"></a><var>46.2</var>of electrical energy and an aerial camera package exempt under section 
         <statute_ref>297A.68</statute_ref>, <br/>
<a id="pl.46.3"></a><var>46.3</var>subdivision 37;<br/>
<a id="pl.46.4"></a><var>46.4</var>    (11) tangible personal property and taxable services and construction materials, <br/>
<a id="pl.46.5"></a><var>46.5</var>supplies, and equipment exempt under section 
         <statute_ref>297A.68</statute_ref>, subdivision 41;<br/>
<a id="pl.46.6"></a><var>46.6</var>    (12) commuter rail vehicle and repair parts under section 
         <statute_ref>297A.70, subdivision <br/>
</statute_ref><a id="pl.46.7"></a><var>46.7</var>3, clause (11);<br/>
<a id="pl.46.8"></a><var>46.8</var>    (13) materials, supplies, and equipment for construction or improvement of projects <br/>
<a id="pl.46.9"></a><var>46.9</var>and facilities under section 
         <statute_ref>297A.71, subdivision 40</statute_ref>;<br/>
<a id="pl.46.10"></a><var>46.10</var>(14) materials, supplies, and equipment for construction or improvement of a meat <br/>
<a id="pl.46.11"></a><var>46.11</var>processing facility exempt under section 
         <statute_ref>297A.71, subdivision 41</statute_ref>; and<br/>
<a id="pl.46.12"></a><var>46.12</var>(15) materials, supplies, and equipment for construction, improvement, or expansion <br/>
<a id="pl.46.13"></a><var>46.13</var>of an aerospace defense manufacturing facility exempt under section 
         <statute_ref>297A.71, subdivision <br/>
</statute_ref><a id="pl.46.14"></a><var>46.14</var>42; and<br/>
<a id="pl.46.15"></a><var>46.15</var>(16) products and services for a regionwide public safety radio communication <br/>
<a id="pl.46.16"></a><var>46.16</var>system exempt under section 297A.70, subdivision 8, purchased after December 31, <br/>
<a id="pl.46.17"></a><var>46.17</var>2009, and before July 1, 2013.<br/>
<a id="pl.46.18"></a><var>46.18</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.46.19"></a><var>46.19</var>December 31, 2009. After July 1, 2013, purchasers may apply for a refund of tax paid for <br/>
<a id="pl.46.20"></a><var>46.20</var>qualifying purchases under this subdivision made after December 31, 2009, and before <br/>
<a id="pl.46.21"></a><var>46.21</var>July 1, 2013, in the manner provided in section 297A.75.<br/>
<br/>
<a id="bill.3.13.0"></a><a id="pl.46.22"></a><var>46.22</var>    Sec. 13. Minnesota Statutes 2010, section 297A.75, subdivision 2, is amended to read:<br/>
<a id="pl.46.23"></a><var>46.23</var>    Subd. 2. <b>Refund; eligible persons.</b> Upon application on forms prescribed by the <br/>
<a id="pl.46.24"></a><var>46.24</var>commissioner, a refund equal to the tax paid on the gross receipts of the exempt items <br/>
<a id="pl.46.25"></a><var>46.25</var>must be paid to the applicant. Only the following persons may apply for the refund:<br/>
<a id="pl.46.26"></a><var>46.26</var>    (1) for subdivision 1, clauses (1) to (3), the applicant must be the purchaser;<br/>
<a id="pl.46.27"></a><var>46.27</var>    (2) for subdivision 1, clauses (4) and (7), the applicant must be the governmental <br/>
<a id="pl.46.28"></a><var>46.28</var>subdivision;<br/>
<a id="pl.46.29"></a><var>46.29</var>    (3) for subdivision 1, clause (5), the applicant must be the recipient of the benefits <br/>
<a id="pl.46.30"></a><var>46.30</var>provided in United States Code, title 38, chapter 21;<br/>
<a id="pl.46.31"></a><var>46.31</var>    (4) for subdivision 1, clause (6), the applicant must be the owner of the homestead <br/>
<a id="pl.46.32"></a><var>46.32</var>property;<br/>
<a id="pl.46.33"></a><var>46.33</var>    (5) for subdivision 1, clause (8), the owner of the qualified low-income housing <br/>
<a id="pl.46.34"></a><var>46.34</var>project;<br/>
<a id="pl.47.1"></a><var>47.1</var>    (6) for subdivision 1, clause (9), the applicant must be a municipal electric utility or <br/>
<a id="pl.47.2"></a><var>47.2</var>a joint venture of municipal electric utilities;<br/>
<a id="pl.47.3"></a><var>47.3</var>    (7) for subdivision 1, clauses (10), (11), (14), and (15), the owner of the qualifying <br/>
<a id="pl.47.4"></a><var>47.4</var>business; and<br/>
<a id="pl.47.5"></a><var>47.5</var>    (8) for subdivision 1, clauses (12) and, (13), and (16), the applicant must be the <br/>
<a id="pl.47.6"></a><var>47.6</var>governmental entity that owns or contracts for the project or facility.<br/>
<a id="pl.47.7"></a><var>47.7</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.47.8"></a><var>47.8</var>December 31, 2009. After July 1, 2013, purchasers may apply for a refund of tax paid for <br/>
<a id="pl.47.9"></a><var>47.9</var>qualifying purchases under this subdivision made after December 31, 2009, and before <br/>
<a id="pl.47.10"></a><var>47.10</var>July 1, 2013, in the manner provided in section 297A.75.<br/>
<br/>
<a id="bill.3.14.0"></a><a id="pl.47.11"></a><var>47.11</var>    Sec. 14. Minnesota Statutes 2010, section 297A.75, subdivision 3, is amended to read:<br/>
<a id="pl.47.12"></a><var>47.12</var>    Subd. 3. <b>Application.</b> (a) The application must include sufficient information <br/>
<a id="pl.47.13"></a><var>47.13</var>to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, <br/>
<a id="pl.47.14"></a><var>47.14</var>subcontractor, or builder, under subdivision 1, clause (4), (5), (6), (7), (8), (9), (10), (11), <br/>
<a id="pl.47.15"></a><var>47.15</var>(12), (13), (14), or (15), or (16), the contractor, subcontractor, or builder must furnish to <br/>
<a id="pl.47.16"></a><var>47.16</var>the refund applicant a statement including the cost of the exempt items and the taxes paid <br/>
<a id="pl.47.17"></a><var>47.17</var>on the items unless otherwise specifically provided by this subdivision. The provisions of <br/>
<a id="pl.47.18"></a><var>47.18</var>sections 
         <statute_ref>289A.40</statute_ref> and 
         <statute_ref>289A.50</statute_ref> apply to refunds under this section.<br/>
<a id="pl.47.19"></a><var>47.19</var>    (b) An applicant may not file more than two applications per calendar year for <br/>
<a id="pl.47.20"></a><var>47.20</var>refunds for taxes paid on capital equipment exempt under section 
         <statute_ref>297A.68, subdivision 5</statute_ref>.<br/>
<a id="pl.47.21"></a><var>47.21</var>    (c) Total refunds for purchases of items in section 
         <statute_ref>297A.71, subdivision 40</statute_ref>, must not <br/>
<a id="pl.47.22"></a><var>47.22</var>exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases <br/>
<a id="pl.47.23"></a><var>47.23</var>of items in sections 
         <statute_ref>297A.70, subdivision 3</statute_ref>, paragraph (a), clause (11), and 
         <statute_ref>297A.71</statute_ref>, <br/>
<a id="pl.47.24"></a><var>47.24</var>subdivision 40, must not be filed until after June 30, 2009.<br/>
<a id="pl.47.25"></a><var>47.25</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.47.26"></a><var>47.26</var>December 31, 2009. After July 1, 2013, purchasers may apply for a refund of tax paid for <br/>
<a id="pl.47.27"></a><var>47.27</var>qualifying purchases under this subdivision made after December 31, 2009, and before <br/>
<a id="pl.47.28"></a><var>47.28</var>July 1, 2013, in the manner provided in section 297A.75.<br/>
<br/>
<a id="bill.3.15.0"></a><a id="pl.47.29"></a><var>47.29</var>    Sec. 15. Minnesota Statutes 2010, section 297A.82, subdivision 4, is amended to read:<br/>
<a id="pl.47.30"></a><var>47.30</var>    Subd. 4. <b>Exemptions.</b> (a) The following transactions are exempt from the tax <br/>
<a id="pl.47.31"></a><var>47.31</var>imposed in this chapter to the extent provided.<br/>
<a id="pl.48.1"></a><var>48.1</var>(b) The purchase or use of aircraft previously registered in Minnesota by a <br/>
<a id="pl.48.2"></a><var>48.2</var>corporation or partnership is exempt if the transfer constitutes a transfer within the <br/>
<a id="pl.48.3"></a><var>48.3</var>meaning of section 351 or 721 of the Internal Revenue Code.<br/>
<a id="pl.48.4"></a><var>48.4</var>(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer <br/>
<a id="pl.48.5"></a><var>48.5</var>of an aircraft for which a commercial use permit has been issued pursuant to section <br/>
<statute_ref><a id="pl.48.6"></a><var>48.6</var>360.654
         </statute_ref> is exempt, if the aircraft is resold while the permit is in effect. <br/>
<a id="pl.48.7"></a><var>48.7</var>(d) Airflight equipment when sold to, or purchased, stored, used, or consumed by <br/>
<a id="pl.48.8"></a><var>48.8</var>airline companies, as defined in section 
         <statute_ref>270.071, subdivision 4</statute_ref>, is exempt. For purposes of <br/>
<a id="pl.48.9"></a><var>48.9</var>this subdivision, "airflight equipment" includes airplanes and parts necessary for the repair <br/>
<a id="pl.48.10"></a><var>48.10</var>and maintenance of such airflight equipment, and flight simulators, but does not include <br/>
<a id="pl.48.11"></a><var>48.11</var>airplanes with a gross weight of less than 30,000 pounds that are used on intermittent or <br/>
<a id="pl.48.12"></a><var>48.12</var>irregularly timed flights. <br/>
<a id="pl.48.13"></a><var>48.13</var>(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined <br/>
<a id="pl.48.14"></a><var>48.14</var>in section 
         <statute_ref>360.511</statute_ref> and approved by the Federal Aviation Administration, and which the <br/>
<a id="pl.48.15"></a><var>48.15</var>seller delivers to a purchaser outside Minnesota or which, without intermediate use, is <br/>
<a id="pl.48.16"></a><var>48.16</var>shipped or transported outside Minnesota by the purchaser are exempt, but only if the <br/>
<a id="pl.48.17"></a><var>48.17</var>purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter <br/>
<a id="pl.48.18"></a><var>48.18</var>returned to a point within Minnesota, except in the course of interstate commerce or <br/>
<a id="pl.48.19"></a><var>48.19</var>isolated and occasional use, and will be registered in another state or country upon its <br/>
<a id="pl.48.20"></a><var>48.20</var>removal from Minnesota. This exemption applies even if the purchaser takes possession of <br/>
<a id="pl.48.21"></a><var>48.21</var>the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes <br/>
<a id="pl.48.22"></a><var>48.22</var>for a period not to exceed ten days prior to removing the aircraft from this state. <br/>
<a id="pl.48.23"></a><var>48.23</var>(f) The sale or purchase of aircraft and aircraft equipment, including parts necessary <br/>
<a id="pl.48.24"></a><var>48.24</var>for repair and maintenance of such airflight equipment, as defined under Federal Aviation <br/>
<a id="pl.48.25"></a><var>48.25</var>Regulations, Part 135, that has a maximum certified takeoff weight of 6,000 pounds or <br/>
<a id="pl.48.26"></a><var>48.26</var>more are exempt.<br/>
<a id="pl.48.27"></a><var>48.27</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.48.28"></a><var>48.28</var>June 30, 2011.<br/>
<br/>
<a id="bill.3.16.0"></a><a id="pl.48.29"></a><var>48.29</var>    Sec. 16. <b> REPEALER.</b><br/>
<a id="pl.48.30"></a><var>48.30</var>Minnesota Statutes 2010, section 289A.60, subdivision 31, is repealed.<br/>
<a id="pl.48.31"></a><var>48.31</var><b>EFFECTIVE DATE.</b>This section is effective for taxes due and payable after <br/>
<a id="pl.48.32"></a><var>48.32</var>July 1, 2011.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.49.3"></a><var>49.3</var>    Section 1. <b>[116W.25] CITATION.</b><br/>
<a id="pl.49.4"></a><var>49.4</var>Sections 116W.26 to 116W.34 may be cited as the "Minnesota science and <br/>
<a id="pl.49.5"></a><var>49.5</var>technology program." <br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.49.6"></a><var>49.6</var>    Sec. 2. <b>[116W.26] DEFINITIONS.</b><br/>
<a id="pl.49.7"></a><var>49.7</var>    Subdivision 1. <b>Applicability.</b> For the purposes of sections 116W.26 to 116W.34, <br/>
<a id="pl.49.8"></a><var>49.8</var>the terms in this section have the meanings given them. <br/>
<a id="pl.49.9"></a><var>49.9</var>    Subd. 2. <b>Authority.</b> "Authority" means the Minnesota Science and Technology <br/>
<a id="pl.49.10"></a><var>49.10</var>Authority established under this chapter. <br/>
<a id="pl.49.11"></a><var>49.11</var>    Subd. 3. <b>College or university.</b> "College or university" means an institution of <br/>
<a id="pl.49.12"></a><var>49.12</var>postsecondary education, public or private, that grants undergraduate or postgraduate <br/>
<a id="pl.49.13"></a><var>49.13</var>academic degrees, conducts significant research or development activities in the areas of <br/>
<a id="pl.49.14"></a><var>49.14</var>science and technology.<br/>
<a id="pl.49.15"></a><var>49.15</var>    Subd. 4. <b>Commercialization.</b> "Commercialization" means any of the full spectrum <br/>
<a id="pl.49.16"></a><var>49.16</var>of activities required for a new technology, product, or process to be developed from <br/>
<a id="pl.49.17"></a><var>49.17</var>its basic research of conceptual stage through applied research or development to the <br/>
<a id="pl.49.18"></a><var>49.18</var>marketplace including, without limitation, the steps leading up to and including licensure, <br/>
<a id="pl.49.19"></a><var>49.19</var>sales, and services.<br/>
<a id="pl.49.20"></a><var>49.20</var>    Subd. 5. <b>Commercialized research project.</b> "Commercialized research project" <br/>
<a id="pl.49.21"></a><var>49.21</var>means research conducted within a college or university or nonprofit research institution <br/>
<a id="pl.49.22"></a><var>49.22</var>or by a qualified science and technology company that has shown advanced commercial <br/>
<a id="pl.49.23"></a><var>49.23</var>potential through license agreements, patents, or other forms of invention disclosure, and <br/>
<a id="pl.49.24"></a><var>49.24</var>by which a qualified science and technology company has been or is being currently <br/>
<a id="pl.49.25"></a><var>49.25</var>formed. <br/>
<a id="pl.49.26"></a><var>49.26</var>    Subd. 6. <b>Fund.</b> "Fund" means the Minnesota science and technology fund.<br/>
<a id="pl.49.27"></a><var>49.27</var>    Subd. 7. <b>Nonprofit research institution.</b> "Nonprofit research institution" means an <br/>
<a id="pl.49.28"></a><var>49.28</var>entity with its principle place of business in Minnesota, that qualifies under section 501(c) <br/>
<a id="pl.49.29"></a><var>49.29</var>of the Internal Revenue Code, and that conducts significant research or development <br/>
<a id="pl.49.30"></a><var>49.30</var>activities in this state in the areas of science and technology.<br/>
<a id="pl.49.31"></a><var>49.31</var>    Subd. 8. <b>Program.</b> "Program" means the Minnesota science and technology <br/>
<a id="pl.49.32"></a><var>49.32</var>program.<br/>
<a id="pl.49.33"></a><var>49.33</var>    Subd. 9. <b>Qualified science and technology company.</b> "Qualified science and <br/>
<a id="pl.49.34"></a><var>49.34</var>technology company" means a corporation, limited liability company, S corporation, <br/>
<a id="pl.49.35"></a><var>49.35</var>partnership, limited liability partnership, or sole proprietorship with fewer than 100 <br/>
<a id="pl.50.1"></a><var>50.1</var>employees that is engaged in research, development, or production of science or <br/>
<a id="pl.50.2"></a><var>50.2</var>technology in this state including, without limitation, research, development, or production <br/>
<a id="pl.50.3"></a><var>50.3</var>directed toward developing or providing science and technology products, processes, or <br/>
<a id="pl.50.4"></a><var>50.4</var>services for specific commercial or public purposes.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.50.5"></a><var>50.5</var>    Sec. 3. <b>[116W.27] MINNESOTA SCIENCE AND TECHNOLOGY FUND.</b><br/>
<a id="pl.50.6"></a><var>50.6</var>A Minnesota science and technology fund is created in the state treasury. The fund <br/>
<a id="pl.50.7"></a><var>50.7</var>is a direct-appropriated special revenue fund. Money of the authority must be paid to the <br/>
<a id="pl.50.8"></a><var>50.8</var>commissioner of management and budget as agent of the authority and the commissioner <br/>
<a id="pl.50.9"></a><var>50.9</var>shall not commingle the money with other money. The money in the fund must be paid out <br/>
<a id="pl.50.10"></a><var>50.10</var>only on warrants drawn by the commissioner of management and budget on requisition of <br/>
<a id="pl.50.11"></a><var>50.11</var>the executive director of the authority or designee.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.50.12"></a><var>50.12</var>    Sec. 4. <b>[116W.28] MINNESOTA SCIENCE AND TECHNOLOGY FUND; </b><br/>
<a id="pl.50.13"></a><var>50.13</var><b>AUTHORIZED USES.</b><br/>
<a id="pl.50.14"></a><var>50.14</var>The Minnesota science and technology fund may be used for the following to:<br/>
<a id="pl.50.15"></a><var>50.15</var>(1) establish the commercialized research program authorized under section <br/>
<a id="pl.50.16"></a><var>50.16</var>116W.29;<br/>
<a id="pl.50.17"></a><var>50.17</var>(2) establish the federal research and development support program under section <br/>
<a id="pl.50.18"></a><var>50.18</var>116W.30;<br/>
<a id="pl.50.19"></a><var>50.19</var>(3) establish the industry technology and competitiveness program under section <br/>
<a id="pl.50.20"></a><var>50.20</var>116W.31; and <br/>
<a id="pl.50.21"></a><var>50.21</var>(4) carry out the powers of the authority authorized under sections 116W.04 and <br/>
<a id="pl.50.22"></a><var>50.22</var>116W.32 that are in support of the programs in clauses (1) to (3).<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.50.23"></a><var>50.23</var>    Sec. 5. <b>[116W.29] COMMERCIALIZED RESEARCH PROGRAM.</b><br/>
<a id="pl.50.24"></a><var>50.24</var>(a) The authority may establish a commercialized research program. The purpose of <br/>
<a id="pl.50.25"></a><var>50.25</var>the program is to accelerate the commercialization of science and technology products, <br/>
<a id="pl.50.26"></a><var>50.26</var>processes, or services from colleges or universities, nonprofit research institutions or <br/>
<a id="pl.50.27"></a><var>50.27</var>qualified science and technology companies that lead to an increase in science and <br/>
<a id="pl.50.28"></a><var>50.28</var>technology businesses and jobs. The program shall:<br/>
<a id="pl.50.29"></a><var>50.29</var>(1) provide science and technology gap funding of up to $250,000 per science and <br/>
<a id="pl.50.30"></a><var>50.30</var>technology research project to assist in the commercialization and transfer of science and <br/>
<a id="pl.50.31"></a><var>50.31</var>technology research projects from a college or university or nonprofit research institution <br/>
<a id="pl.50.32"></a><var>50.32</var>to a qualified science and technology company; and<br/>
<a id="pl.51.1"></a><var>51.1</var>(2) provide funding of up to $250,000 for early stage development for qualified <br/>
<a id="pl.51.2"></a><var>51.2</var>science and technology companies to conduct commercialized research projects.<br/>
<a id="pl.51.3"></a><var>51.3</var>(b) All activities under the commercialized research program must require:<br/>
<a id="pl.51.4"></a><var>51.4</var>(1) written criteria set by the authority for the application, award, and use of the <br/>
<a id="pl.51.5"></a><var>51.5</var>funds;<br/>
<a id="pl.51.6"></a><var>51.6</var>(2) matching funds by the participating qualified science and technology company, <br/>
<a id="pl.51.7"></a><var>51.7</var>college or university, or nonprofit research institution;<br/>
<a id="pl.51.8"></a><var>51.8</var>(3) no more than 15 percent of the funds awarded by the authority may be used <br/>
<a id="pl.51.9"></a><var>51.9</var>for overhead costs; and<br/>
<a id="pl.51.10"></a><var>51.10</var>(4) a report by the participating qualified science and technology company, college <br/>
<a id="pl.51.11"></a><var>51.11</var>or university, or nonprofit research institution that provides documentation of the use of <br/>
<a id="pl.51.12"></a><var>51.12</var>funds and outcomes of the award. The report must be submitted to the authority within <br/>
<a id="pl.51.13"></a><var>51.13</var>one calendar year of the date of the award.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.51.14"></a><var>51.14</var>    Sec. 6. <b>[116W.30] FEDERAL RESEARCH AND DEVELOPMENT SUPPORT </b><br/>
<a id="pl.51.15"></a><var>51.15</var><b>PROGRAM.</b><br/>
<a id="pl.51.16"></a><var>51.16</var>The authority may establish a federal research and development support program. <br/>
<a id="pl.51.17"></a><var>51.17</var>The purpose of the program is to increase and coordinate efforts to procure federal funding <br/>
<a id="pl.51.18"></a><var>51.18</var>for research projects of primary benefit to qualified science and technology companies, <br/>
<a id="pl.51.19"></a><var>51.19</var>colleges or universities, and nonprofit research institutions. The program shall:<br/>
<a id="pl.51.20"></a><var>51.20</var>(1) develop and execute a strategy to identify specific federal agencies and programs <br/>
<a id="pl.51.21"></a><var>51.21</var>that support the growth of science and technology industries in this state; and<br/>
<a id="pl.51.22"></a><var>51.22</var>(2) provide grants to qualified science and technology companies:<br/>
<a id="pl.51.23"></a><var>51.23</var>(i) to assist in the development of federal Small Business Innovation (SBIR) or <br/>
<a id="pl.51.24"></a><var>51.24</var>Small Business Technology Transfer (STTR) proposals; and<br/>
<a id="pl.51.25"></a><var>51.25</var>(ii) to match funds received through SBIR or STTR awards. No more than <br/>
<a id="pl.51.26"></a><var>51.26</var>$1,500,000 may be awarded in a year for matching grants under this clause.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.51.27"></a><var>51.27</var>    Sec. 7. <b>[116W.31] INDUSTRY INNOVATION AND COMPETITIVENESS </b><br/>
<a id="pl.51.28"></a><var>51.28</var><b>PROGRAM.</b><br/>
<a id="pl.51.29"></a><var>51.29</var>(a) The authority may establish an industry technology and competitiveness program. <br/>
<a id="pl.51.30"></a><var>51.30</var>The purpose of the program is to advance the technological capacity and competitiveness <br/>
<a id="pl.51.31"></a><var>51.31</var>of existing and emerging science and technology industries. The program shall:<br/>
<a id="pl.51.32"></a><var>51.32</var>(1) provide matching funds to programs and organizations that assist entrepreneurs <br/>
<a id="pl.51.33"></a><var>51.33</var>in starting and growing qualified science and technology companies including, but not <br/>
<a id="pl.52.1"></a><var>52.1</var>limited to, matching funds for mentoring programs, consulting and technical services, <br/>
<a id="pl.52.2"></a><var>52.2</var>and related activities;<br/>
<a id="pl.52.3"></a><var>52.3</var>(2) fund initiatives that retain engineering, science, technology, and mathematical <br/>
<a id="pl.52.4"></a><var>52.4</var>occupations in the state including, but not limited to, internships, mentoring, and support <br/>
<a id="pl.52.5"></a><var>52.5</var>of industry and professional organizations; and<br/>
<a id="pl.52.6"></a><var>52.6</var>(3) fund initiatives that support the growth of targeted industry clusters and the <br/>
<a id="pl.52.7"></a><var>52.7</var>competitiveness of existing qualified science and technology companies in developing <br/>
<a id="pl.52.8"></a><var>52.8</var>and marketing new products and services.<br/>
<a id="pl.52.9"></a><var>52.9</var>(b) All activities under the industry innovation and competitiveness program shall <br/>
<a id="pl.52.10"></a><var>52.10</var>require:<br/>
<a id="pl.52.11"></a><var>52.11</var>(i) written criteria set by the authority for the application, award, and use of the funds;<br/>
<a id="pl.52.12"></a><var>52.12</var>(ii) matching funds by the participating qualified science and technology company, <br/>
<a id="pl.52.13"></a><var>52.13</var>college or university, or nonprofit research institution; and<br/>
<a id="pl.52.14"></a><var>52.14</var>(iii) a report by the participating qualified science and technology company, college <br/>
<a id="pl.52.15"></a><var>52.15</var>or university, or nonprofit research institution providing documentation on the use of the <br/>
<a id="pl.52.16"></a><var>52.16</var>funds and outcomes of the award. The report must be submitted to the authority within <br/>
<a id="pl.52.17"></a><var>52.17</var>one calendar year from the date of the award.<br/>
<br/>
<a id="bill.4.8.0"></a><a id="pl.52.18"></a><var>52.18</var>    Sec. 8. <b>[116W.32] MINNESOTA SCIENCE AND TECHNOLOGY AUTHORITY; </b><br/>
<a id="pl.52.19"></a><var>52.19</var><b>POWERS UNDER FUND.</b><br/>
<a id="pl.52.20"></a><var>52.20</var>    Subdivision 1. <b>General powers.</b> The authority shall have all of the powers <br/>
<a id="pl.52.21"></a><var>52.21</var>necessary to carry out the purposes and provisions of sections 116W.26 to 116W.34, <br/>
<a id="pl.52.22"></a><var>52.22</var>including, but not limited to, those provided under section 116W.04 and the following:<br/>
<a id="pl.52.23"></a><var>52.23</var>(1) The authority may make awards in the forms of grants or loans, and charge and <br/>
<a id="pl.52.24"></a><var>52.24</var>receive a reasonable interest for the loans, or take an equity position in form of stock, a <br/>
<a id="pl.52.25"></a><var>52.25</var>convertible note, or other securities in consideration of an award. Interests, revenues, or <br/>
<a id="pl.52.26"></a><var>52.26</var>other proceeds received as a result of a transaction authorized by use of this fund shall be <br/>
<a id="pl.52.27"></a><var>52.27</var>deposited to the corpus of the fund and used in the same manner as the corpus of the fund.<br/>
<a id="pl.52.28"></a><var>52.28</var>(2) In awarding money from the fund, priority shall be given to proposals from <br/>
<a id="pl.52.29"></a><var>52.29</var>qualified science and technology companies that have demonstrable economic benefit to <br/>
<a id="pl.52.30"></a><var>52.30</var>the state in terms of the formation of a new private sector business entity, the creation of <br/>
<a id="pl.52.31"></a><var>52.31</var>jobs, or the attraction of federal and private funding.<br/>
<a id="pl.52.32"></a><var>52.32</var>(3) In awarding money from the fund, priority shall be given to proposals from <br/>
<a id="pl.52.33"></a><var>52.33</var>colleges or universities and nonprofit research institutions that:<br/>
<a id="pl.52.34"></a><var>52.34</var>(i) promote collaboration between any combination of colleges or universities, <br/>
<a id="pl.52.35"></a><var>52.35</var>nonprofit research institutions, and private industry;<br/>
<a id="pl.53.1"></a><var>53.1</var>(ii) enhance existing research superiority by attracting new research entities, <br/>
<a id="pl.53.2"></a><var>53.2</var>research talent, or resources to the state; and<br/>
<a id="pl.53.3"></a><var>53.3</var>(iii) create new research superiority that attracts significant researchers and resources <br/>
<a id="pl.53.4"></a><var>53.4</var>from outside the state.<br/>
<a id="pl.53.5"></a><var>53.5</var>(4) Subject to the limits in this clause, money within the fund may be used <br/>
<a id="pl.53.6"></a><var>53.6</var>for reasonable administrative expenses by the authority including staffing and direct <br/>
<a id="pl.53.7"></a><var>53.7</var>operational expenses, and professional fees for accounting, legal, and other technical <br/>
<a id="pl.53.8"></a><var>53.8</var>services required to carry out the intent of the program and administration of the fund. <br/>
<a id="pl.53.9"></a><var>53.9</var>Administrative expenses may not exceed five percent of the first $5,000,000 in the fund <br/>
<a id="pl.53.10"></a><var>53.10</var>and two percent of any amount in excess of $5,000,000.<br/>
<a id="pl.53.11"></a><var>53.11</var>(5) Before making an award, the authority shall enter into a written agreement with <br/>
<a id="pl.53.12"></a><var>53.12</var>the entity receiving the award that specifies the uses of the award.<br/>
<a id="pl.53.13"></a><var>53.13</var>(6) If the award recipient has not used the award received for the purposes intended, <br/>
<a id="pl.53.14"></a><var>53.14</var>as of the date provided in the agreement, the recipient shall repay that amount and any <br/>
<a id="pl.53.15"></a><var>53.15</var>interest applicable under the agreement to the authority. All repayments must be deposited <br/>
<a id="pl.53.16"></a><var>53.16</var>to the corpus of the fund.<br/>
<a id="pl.53.17"></a><var>53.17</var>    Subd. 2. <b>Rules.</b> The authority may adopt rules to implement the programs <br/>
<a id="pl.53.18"></a><var>53.18</var>authorized under sections 116W.29 to 116W.31.<br/>
<br/>
<a id="bill.4.9.0"></a><a id="pl.53.19"></a><var>53.19</var>    Sec. 9. <b>[116W.33] REPAYMENT.</b><br/>
<a id="pl.53.20"></a><var>53.20</var>An entity must repay all or a portion of the amount of any award, grant, loan, or <br/>
<a id="pl.53.21"></a><var>53.21</var>financial assistance of any type paid by the authority under sections 116W.29 to 116W.32 <br/>
<a id="pl.53.22"></a><var>53.22</var>if the entity relocates outside the state or ceases operation in Minnesota within four years <br/>
<a id="pl.53.23"></a><var>53.23</var>from the date the authority provided the financial award. If the entity relocates outside of <br/>
<a id="pl.53.24"></a><var>53.24</var>this state or ceases operation in Minnesota within three years of the financial award, the <br/>
<a id="pl.53.25"></a><var>53.25</var>entity must repay 100 percent of the award. If the entity relocates or ceases operation in <br/>
<a id="pl.53.26"></a><var>53.26</var>Minnesota after a period of three years but before four years from the date of the financial <br/>
<a id="pl.53.27"></a><var>53.27</var>award, the entity must repay 75 percent of the financial award. <br/>
<br/>
<a id="bill.4.10.0"></a><a id="pl.53.28"></a><var>53.28</var>    Sec. 10. <b>[116W.34] EXPIRATION.</b><br/>
<a id="pl.53.29"></a><var>53.29</var>Sections 116W.26 to 116W.33 expire on the expiration date of the authority under <br/>
<a id="pl.53.30"></a><var>53.30</var>section 116W.03, subdivision 7. Any unused money in the fund shall be deposited in the <br/>
<a id="pl.53.31"></a><var>53.31</var>general fund.<br/>
<br/>
<a id="bill.4.11.0"></a><a id="pl.53.32"></a><var>53.32</var>    Sec. 11. Minnesota Statutes 2010, section 469.176, subdivision 4c, is amended to read:<br/>
<a id="pl.54.1"></a><var>54.1</var>    Subd. 4c. <b>Economic development districts.</b> (a) Revenue derived from tax <br/>
<a id="pl.54.2"></a><var>54.2</var>increment from an economic development district may not be used to provide <br/>
<a id="pl.54.3"></a><var>54.3</var>improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form <br/>
<a id="pl.54.4"></a><var>54.4</var>to developments consisting of buildings and ancillary facilities, if more than 15 percent <br/>
<a id="pl.54.5"></a><var>54.5</var>of the buildings and facilities (determined on the basis of square footage) are used for a <br/>
<a id="pl.54.6"></a><var>54.6</var>purpose other than:<br/>
<a id="pl.54.7"></a><var>54.7</var>(1) the manufacturing or production of tangible personal property, including <br/>
<a id="pl.54.8"></a><var>54.8</var>processing resulting in the change in condition of the property;<br/>
<a id="pl.54.9"></a><var>54.9</var>(2) warehousing, storage, and distribution of tangible personal property, excluding <br/>
<a id="pl.54.10"></a><var>54.10</var>retail sales;<br/>
<a id="pl.54.11"></a><var>54.11</var>(3) research and development related to the activities listed in clause (1) or (2);<br/>
<a id="pl.54.12"></a><var>54.12</var>(4) telemarketing if that activity is the exclusive use of the property;<br/>
<a id="pl.54.13"></a><var>54.13</var>(5) tourism facilities;<br/>
<a id="pl.54.14"></a><var>54.14</var>(6) qualified border retail facilities; or<br/>
<a id="pl.54.15"></a><var>54.15</var>(7) space necessary for and related to the activities listed in clauses (1) to (6).<br/>
<a id="pl.54.16"></a><var>54.16</var>(b) Notwithstanding the provisions of this subdivision, revenues derived from tax <br/>
<a id="pl.54.17"></a><var>54.17</var>increment from an economic development district may be used to provide improvements, <br/>
<a id="pl.54.18"></a><var>54.18</var>loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000 <br/>
<a id="pl.54.19"></a><var>54.19</var>square feet of any separately owned commercial facility located within the municipal <br/>
<a id="pl.54.20"></a><var>54.20</var>jurisdiction of a small city, if the revenues derived from increments are spent only to <br/>
<a id="pl.54.21"></a><var>54.21</var>assist the facility directly or for administrative expenses, the assistance is necessary to <br/>
<a id="pl.54.22"></a><var>54.22</var>develop the facility, and all of the increments, except those for administrative expenses, <br/>
<a id="pl.54.23"></a><var>54.23</var>are spent only for activities within the district.<br/>
<a id="pl.54.24"></a><var>54.24</var>(c) A city is a small city for purposes of this subdivision if the city was a small city <br/>
<a id="pl.54.25"></a><var>54.25</var>in the year in which the request for certification was made and applies for the rest of <br/>
<a id="pl.54.26"></a><var>54.26</var>the duration of the district, regardless of whether the city qualifies or ceases to qualify <br/>
<a id="pl.54.27"></a><var>54.27</var>as a small city.<br/>
<a id="pl.54.28"></a><var>54.28</var>(d) Notwithstanding the requirements of paragraph (a) and the finding requirements <br/>
<a id="pl.54.29"></a><var>54.29</var>of section 
         <statute_ref>469.174, subdivision 12</statute_ref>, tax increments from an economic development district <br/>
<a id="pl.54.30"></a><var>54.30</var>may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or <br/>
<a id="pl.54.31"></a><var>54.31</var>assistance in any form to developments consisting of buildings and ancillary facilities, if <br/>
<a id="pl.54.32"></a><var>54.32</var>all the following conditions are met:<br/>
<a id="pl.54.33"></a><var>54.33</var>(1) the municipality finds that the project will create or retain jobs in this state, <br/>
<a id="pl.54.34"></a><var>54.34</var>including construction jobs, and that construction of the project would not have <br/>
<a id="pl.54.35"></a><var>54.35</var>commenced before July 1, 2011 2012, without the authority providing assistance under <br/>
<a id="pl.54.36"></a><var>54.36</var>the provisions of this paragraph;<br/>
<a id="pl.55.1"></a><var>55.1</var>(2) construction of the project begins no later than July 1, 2011 2012; and<br/>
<a id="pl.55.2"></a><var>55.2</var>(3) the request for certification of the district is made no later than June 30, 2011 <br/>
<a id="pl.55.3"></a><var>55.3</var>2012; and<br/>
<a id="pl.55.4"></a><var>55.4</var>(4) for development of housing under this paragraph, the construction must begin <br/>
<a id="pl.55.5"></a><var>55.5</var>before January 1, 2012.<br/>
<a id="pl.55.6"></a><var>55.6</var>The provisions of this paragraph may not be used to assist housing that is developed <br/>
<a id="pl.55.7"></a><var>55.7</var>to qualify under section 469.1761, subdivision 2 or 3, or similar requirements of other law, <br/>
<a id="pl.55.8"></a><var>55.8</var>if construction of the project begins later than July 1, 2011.<br/>
<a id="pl.55.9"></a><var>55.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.12.0"></a><a id="pl.55.10"></a><var>55.10</var>    Sec. 12. Minnesota Statutes 2010, section 469.176, subdivision 4m, is amended to read:<br/>
<a id="pl.55.11"></a><var>55.11</var>    Subd. 4m. <b>Temporary authority to stimulate construction.</b> (a) Notwithstanding <br/>
<a id="pl.55.12"></a><var>55.12</var>the restrictions in any other subdivision of this section or any other law to the contrary, <br/>
<a id="pl.55.13"></a><var>55.13</var>except the requirement to pay bonds to which the increments are pledged and the <br/>
<a id="pl.55.14"></a><var>55.14</var>provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or <br/>
<a id="pl.55.15"></a><var>55.15</var>more of the following purposes:<br/>
<a id="pl.55.16"></a><var>55.16</var>(1) to provide improvements, loans, interest rate subsidies, or assistance in any <br/>
<a id="pl.55.17"></a><var>55.17</var>form to private development consisting of the construction or substantial rehabilitation <br/>
<a id="pl.55.18"></a><var>55.18</var>of buildings and ancillary facilities, if doing so will create or retain jobs in this state, <br/>
<a id="pl.55.19"></a><var>55.19</var>including construction jobs, and that the construction commences before July 1, 2011 <br/>
<a id="pl.55.20"></a><var>55.20</var>2012, and would not have commenced before that date without the assistance; or<br/>
<a id="pl.55.21"></a><var>55.21</var>(2) to make an equity or similar investment in a corporation, partnership, or limited <br/>
<a id="pl.55.22"></a><var>55.22</var>liability company that the authority determines is necessary to make construction of a <br/>
<a id="pl.55.23"></a><var>55.23</var>development that meets the requirements of clause (1) financially feasible.<br/>
<a id="pl.55.24"></a><var>55.24</var>(b) The authority may undertake actions under the authority of this subdivision only <br/>
<a id="pl.55.25"></a><var>55.25</var>after approval by the municipality of a written spending plan that specifically authorizes <br/>
<a id="pl.55.26"></a><var>55.26</var>the authority to take the actions. The municipality shall approve the spending plan only <br/>
<a id="pl.55.27"></a><var>55.27</var>after a public hearing after published notice in a newspaper of general circulation in <br/>
<a id="pl.55.28"></a><var>55.28</var>the municipality at least once, not less than ten days nor more than 30 days prior to the <br/>
<a id="pl.55.29"></a><var>55.29</var>date of the hearing.<br/>
<a id="pl.55.30"></a><var>55.30</var>(c) The authority to spend tax increments under this subdivision expires December <br/>
<a id="pl.55.31"></a><var>55.31</var>31, 2011 2012.<br/>
<a id="pl.55.32"></a><var>55.32</var>(d) For a development consisting of housing, the authority to spend tax increments <br/>
<a id="pl.55.33"></a><var>55.33</var>under this subdivision expires December 31, 2011, and construction must commence <br/>
<a id="pl.55.34"></a><var>55.34</var>before July 1, 2011, except the authority to spend tax increments on market rate housing <br/>
<a id="pl.56.1"></a><var>56.1</var>developments under this subdivision expires July 31, 2012, and construction must <br/>
<a id="pl.56.2"></a><var>56.2</var>commence before January 1, 2012.<br/>
<a id="pl.56.3"></a><var>56.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.13.0"></a><a id="pl.56.4"></a><var>56.4</var>    Sec. 13. Minnesota Statutes 2010, section 469.1763, subdivision 2, is amended to read:<br/>
<a id="pl.56.5"></a><var>56.5</var>    Subd. 2.  <b>Expenditures outside district.</b> (a) For each tax increment financing <br/>
<a id="pl.56.6"></a><var>56.6</var>district, an amount equal to at least 75 percent of the total revenue derived from tax <br/>
<a id="pl.56.7"></a><var>56.7</var>increments paid by properties in the district must be expended on activities in the district <br/>
<a id="pl.56.8"></a><var>56.8</var>or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities <br/>
<a id="pl.56.9"></a><var>56.9</var>in the district or to pay, or secure payment of, debt service on credit enhanced bonds. <br/>
<a id="pl.56.10"></a><var>56.10</var>For districts, other than redevelopment districts for which the request for certification <br/>
<a id="pl.56.11"></a><var>56.11</var>was made after June 30, 1995, the in-district percentage for purposes of the preceding <br/>
<a id="pl.56.12"></a><var>56.12</var>sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax <br/>
<a id="pl.56.13"></a><var>56.13</var>increments paid by properties in the district may be expended, through a development fund <br/>
<a id="pl.56.14"></a><var>56.14</var>or otherwise, on activities outside of the district but within the defined geographic area of <br/>
<a id="pl.56.15"></a><var>56.15</var>the project except to pay, or secure payment of, debt service on credit enhanced bonds. <br/>
<a id="pl.56.16"></a><var>56.16</var>For districts, other than redevelopment districts for which the request for certification was <br/>
<a id="pl.56.17"></a><var>56.17</var>made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is <br/>
<a id="pl.56.18"></a><var>56.18</var>20 percent. The revenue derived from tax increments for the district that are expended on <br/>
<a id="pl.56.19"></a><var>56.19</var>costs under section 
         <statute_ref>469.176, subdivision 4h</statute_ref>, paragraph (b), may be deducted first before <br/>
<a id="pl.56.20"></a><var>56.20</var>calculating the percentages that must be expended within and without the district. <br/>
<a id="pl.56.21"></a><var>56.21</var>    (b) In the case of a housing district, a housing project, as defined in section 
         <statute_ref>469.174, <br/>
<a id="pl.56.22"></a><var>56.22</var>subdivision 11
         </statute_ref>, is an activity in the district. <br/>
<a id="pl.56.23"></a><var>56.23</var>    (c) All administrative expenses are for activities outside of the district, except that <br/>
<a id="pl.56.24"></a><var>56.24</var>if the only expenses for activities outside of the district under this subdivision are for <br/>
<a id="pl.56.25"></a><var>56.25</var>the purposes described in paragraph (d), administrative expenses will be considered as <br/>
<a id="pl.56.26"></a><var>56.26</var>expenditures for activities in the district. <br/>
<a id="pl.56.27"></a><var>56.27</var>    (d) The authority may elect, in the tax increment financing plan for the district, <br/>
<a id="pl.56.28"></a><var>56.28</var>to increase by up to ten percentage points the permitted amount of expenditures for <br/>
<a id="pl.56.29"></a><var>56.29</var>activities located outside the geographic area of the district under paragraph (a). As <br/>
<a id="pl.56.30"></a><var>56.30</var>permitted by section 
         <statute_ref>469.176, subdivision 4k</statute_ref>, the expenditures, including the permitted <br/>
<a id="pl.56.31"></a><var>56.31</var>expenditures under paragraph (a), need not be made within the geographic area of the <br/>
<a id="pl.56.32"></a><var>56.32</var>project. Expenditures that meet the requirements of this paragraph are legally permitted <br/>
<a id="pl.56.33"></a><var>56.33</var>expenditures of the district, notwithstanding section 
         <statute_ref>469.176, subdivisions 4b, 4c, and 4j</statute_ref>. <br/>
<a id="pl.56.34"></a><var>56.34</var>To qualify for the increase under this paragraph, the expenditures must: <br/>
<a id="pl.57.1"></a><var>57.1</var>    (1) be used exclusively to assist housing that meets the requirement for a qualified <br/>
<a id="pl.57.2"></a><var>57.2</var>low-income building, as that term is used in section 42 of the Internal Revenue Code; and<br/>
<a id="pl.57.3"></a><var>57.3</var>    (2) not exceed the qualified basis of the housing, as defined under section 42(c) of <br/>
<a id="pl.57.4"></a><var>57.4</var>the Internal Revenue Code, less the amount of any credit allowed under section 42 of <br/>
<a id="pl.57.5"></a><var>57.5</var>the Internal Revenue Code; and <br/>
<a id="pl.57.6"></a><var>57.6</var>    (3) be used to: <br/>
<a id="pl.57.7"></a><var>57.7</var>    (i) acquire and prepare the site of the housing; <br/>
<a id="pl.57.8"></a><var>57.8</var>    (ii) acquire, construct, or rehabilitate the housing; or <br/>
<a id="pl.57.9"></a><var>57.9</var>    (iii) make public improvements directly related to the housing.; or<br/>
<a id="pl.57.10"></a><var>57.10</var>(4) be used to develop housing:<br/>
<a id="pl.57.11"></a><var>57.11</var>(i) if the market value of the housing does not exceed the lesser of:<br/>
<a id="pl.57.12"></a><var>57.12</var>(A) 150 percent of the average market of single-family homes in that municipality; or<br/>
<a id="pl.57.13"></a><var>57.13</var>(B) $200,000 for municipalities located in the metropolitan area, as defined in <br/>
<a id="pl.57.14"></a><var>57.14</var>section 473.121, or $125,000 for all other municipalities; and<br/>
<a id="pl.57.15"></a><var>57.15</var>(ii) if the expenditures are used to pay the cost of site acquisition, relocation, <br/>
<a id="pl.57.16"></a><var>57.16</var>demolition of existing structures, site preparation, and pollution abatement on one or <br/>
<a id="pl.57.17"></a><var>57.17</var>more parcels, if the parcel contains a residence containing one to four family dwelling <br/>
<a id="pl.57.18"></a><var>57.18</var>units that has been vacant for six or more months and is in foreclosure as defined in <br/>
<a id="pl.57.19"></a><var>57.19</var>section 325N.10, subdivision 7, but without regard to whether the residence is the owner's <br/>
<a id="pl.57.20"></a><var>57.20</var>principal residence, and only after the redemption period stated in the notice provided <br/>
<a id="pl.57.21"></a><var>57.21</var>under section 580.06 has expired.<br/>
<a id="pl.57.22"></a><var>57.22</var>    (e) For a district created within a biotechnology and health sciences industry zone <br/>
<a id="pl.57.23"></a><var>57.23</var>as defined in section 
         <statute_ref>469.330, subdivision 6</statute_ref>, or for an existing district located within <br/>
<a id="pl.57.24"></a><var>57.24</var>such a zone, tax increment derived from such a district may be expended outside of the <br/>
<a id="pl.57.25"></a><var>57.25</var>district but within the zone only for expenditures required for the construction of public <br/>
<a id="pl.57.26"></a><var>57.26</var>infrastructure necessary to support the activities of the zone, land acquisition, and other <br/>
<a id="pl.57.27"></a><var>57.27</var>redevelopment costs as defined in section 
         <statute_ref>469.176, subdivision 4j</statute_ref>. These expenditures are <br/>
<a id="pl.57.28"></a><var>57.28</var>considered as expenditures for activities within the district. <br/>
<a id="pl.57.29"></a><var>57.29</var>(f) The authority under paragraph (d), clause (4), expires on December 31, 2016. <br/>
<a id="pl.57.30"></a><var>57.30</var>Increments may continue to be expended under this authority after that date, if they are <br/>
<a id="pl.57.31"></a><var>57.31</var>used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph <br/>
<a id="pl.57.32"></a><var>57.32</var>(a), if December 31, 2016, is considered to be the last date of the five-year period after <br/>
<a id="pl.57.33"></a><var>57.33</var>certification under that provision.<br/>
<a id="pl.57.34"></a><var>57.34</var><b>EFFECTIVE DATE.</b>This section is effective for any district that is subject to the <br/>
<a id="pl.57.35"></a><var>57.35</var>provisions of section 469.1763, regardless of when the request for certification of the <br/>
<a id="pl.57.36"></a><var>57.36</var>district was made.<br/>
<br/>
<a id="bill.4.14.0"></a><a id="pl.58.1"></a><var>58.1</var>    Sec. 14. Laws 2010, chapter 389, article 7, section 22, is amended to read:<br/>
<a id="pl.58.2"></a><var>58.2</var>    Sec. 22. <b>CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT; </b><br/>
<a id="pl.58.3"></a><var>58.3</var><b>SPECIAL RULES.</b><br/>
<a id="pl.58.4"></a><var>58.4</var>(a) If the city of Ramsey or an authority of the city elects upon the adoption of a tax <br/>
<a id="pl.58.5"></a><var>58.5</var>increment financing plan for a district, the rules under this section apply to a redevelopment <br/>
<a id="pl.58.6"></a><var>58.6</var>tax increment financing district established by the city or an authority of the city. The <br/>
<a id="pl.58.7"></a><var>58.7</var>redevelopment tax increment district includes parcels within the area bounded on the east <br/>
<a id="pl.58.8"></a><var>58.8</var>by Ramsey Boulevard, on the north by Bunker Lake Boulevard as extended west to Llama <br/>
<a id="pl.58.9"></a><var>58.9</var>Street, on the west by Llama Street, and on the south by a line running parallel to and <br/>
<a id="pl.58.10"></a><var>58.10</var>600 feet south of the southerly right-of-way for U.S. Highway 10, but including Parcels <br/>
<a id="pl.58.11"></a><var>58.11</var>28-32-25-43-0007 and 28-32-25-34-0002 in their entirety, and excluding the Anoka <br/>
<a id="pl.58.12"></a><var>58.12</var>County Regional Park property in its entirety. A parcel within this area that is included in <br/>
<a id="pl.58.13"></a><var>58.13</var>a tax increment financing district that was certified before the date of enactment of this act <br/>
<a id="pl.58.14"></a><var>58.14</var>may be included in the district created under this act if the initial district is decertified.<br/>
<a id="pl.58.15"></a><var>58.15</var>(b) The requirements for qualifying a redevelopment tax increment district under <br/>
<a id="pl.58.16"></a><var>58.16</var>Minnesota Statutes, section 
         <statute_ref>469.174, subdivision 10</statute_ref>, do not apply to the parcels located <br/>
<a id="pl.58.17"></a><var>58.17</var>within the district.<br/>
<a id="pl.58.18"></a><var>58.18</var>(c) In addition to the costs permitted by Minnesota Statutes, section 
         <statute_ref>469.176, <br/>
<a id="pl.58.19"></a><var>58.19</var>subdivision 4j
         </statute_ref>, does not apply to the district. Eligible expenditures within the district <br/>
<a id="pl.58.20"></a><var>58.20</var>include but are not limited to (1) the city's share of the costs necessary to provide for <br/>
<a id="pl.58.21"></a><var>58.21</var>the construction of the Northstar Transit Station and related infrastructure, including <br/>
<a id="pl.58.22"></a><var>58.22</var>structured parking, a pedestrian overpass, and roadway improvements, (2) the cost of <br/>
<a id="pl.58.23"></a><var>58.23</var>land acquired by the city or the housing and redevelopment authority in and for the city <br/>
<a id="pl.58.24"></a><var>58.24</var>of Ramsey within the district prior to the establishment of the district, and (3) the cost <br/>
<a id="pl.58.25"></a><var>58.25</var>of public improvements installed within the tax increment financing district prior to the <br/>
<a id="pl.58.26"></a><var>58.26</var>establishment of the district.<br/>
<a id="pl.58.27"></a><var>58.27</var>(d) The requirement of Minnesota Statutes, section 
         <statute_ref>469.1763, subdivision 3</statute_ref>, that <br/>
<a id="pl.58.28"></a><var>58.28</var>activities must be undertaken within a five-year period from the date of certification of a <br/>
<a id="pl.58.29"></a><var>58.29</var>tax increment financing district, is considered to be met for the district if the activities <br/>
<a id="pl.58.30"></a><var>58.30</var>were undertaken within ten years from the date of certification of the district.<br/>
<a id="pl.58.31"></a><var>58.31</var>(e) Except for administrative expenses, the in-district percentage for purposes of <br/>
<a id="pl.58.32"></a><var>58.32</var>the restriction on pooling under Minnesota Statutes, section 
         <statute_ref>469.1763, subdivision 2</statute_ref>, for <br/>
<a id="pl.58.33"></a><var>58.33</var>this district is 100 percent.<br/>
<a id="pl.58.34"></a><var>58.34</var>(f) The requirement of Minnesota Statutes, section 469.177, subdivision 4, does not <br/>
<a id="pl.58.35"></a><var>58.35</var>apply to Parcels 28-32-25-42-0021 and 28-32-25-41-0014, where development occurred <br/>
<a id="pl.59.1"></a><var>59.1</var>after enactment of Laws 2010, chapter 389, article 7, section 22, and prior to adoption of <br/>
<a id="pl.59.2"></a><var>59.2</var>the tax increment financing plan for the district.<br/>
<a id="pl.59.3"></a><var>59.3</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing <br/>
<a id="pl.59.4"></a><var>59.4</var>body of the city of Ramsey, and upon compliance by the city with Minnesota Statutes, <br/>
<a id="pl.59.5"></a><var>59.5</var>section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.4.15.0"></a><a id="pl.59.6"></a><var>59.6</var>    Sec. 15. <b>CITY OF COHASSET; USE OF TAX INCREMENTS.</b><br/>
<a id="pl.59.7"></a><var>59.7</var>The authority operating tax increment financing districts No. 2-1 and No. 3-1 in <br/>
<a id="pl.59.8"></a><var>59.8</var>the city of Cohasset may transfer tax increments from each of those districts to the city <br/>
<a id="pl.59.9"></a><var>59.9</var>in an amount equal to the advances made by the city from its general fund to finance <br/>
<a id="pl.59.10"></a><var>59.10</var>expenditures under Minnesota Statutes, section 469.176, subdivision 4, for the benefit <br/>
<a id="pl.59.11"></a><var>59.11</var>of that district.<br/>
<a id="pl.59.12"></a><var>59.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.59.13"></a><var>59.13</var>upon approval by the governing body of the city of Cohasset and compliance with <br/>
<a id="pl.59.14"></a><var>59.14</var>Minnesota Statutes, section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.4.16.0"></a><a id="pl.59.15"></a><var>59.15</var>    Sec. 16. <b>CITY OF LINO LAKES; TAX INCREMENT FINANCING.</b><br/>
<a id="pl.59.16"></a><var>59.16</var>    Subdivision 1. <b>Duration of district.</b> Notwithstanding the provisions of Minnesota <br/>
<a id="pl.59.17"></a><var>59.17</var>Statutes, section 469.176, subdivision 1b, the city of Lino Lakes may collect tax <br/>
<a id="pl.59.18"></a><var>59.18</var>increments from tax increment financing district no. 1-10 through December 31, 2023, <br/>
<a id="pl.59.19"></a><var>59.19</var>subject to the conditions in subdivision 2.<br/>
<a id="pl.59.20"></a><var>59.20</var>    Subd. 2. <b>Conditions for extension.</b> All tax increments remaining in the account <br/>
<a id="pl.59.21"></a><var>59.21</var>for the district after February 1, 2011, and all tax increments collected thereafter, must <br/>
<a id="pl.59.22"></a><var>59.22</var>be used only to pay debt service on bonds issued to finance the interchange of Anoka <br/>
<a id="pl.59.23"></a><var>59.23</var>County Highway 23 and marked Interstate Highway 35W, bonds issued to finance public <br/>
<a id="pl.59.24"></a><var>59.24</var>improvements serving the development known as Legacy at Woods Edge, and any bonds <br/>
<a id="pl.59.25"></a><var>59.25</var>issued to refund those bonds. Minnesota Statutes, sections 469.176, subdivision 4c, and <br/>
<a id="pl.59.26"></a><var>59.26</var>469.1763 do not apply to expenditures made under this section.<br/>
<a id="pl.59.27"></a><var>59.27</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.59.28"></a><var>59.28</var>body of the city of Lino Lakes with the requirements of Minnesota Statutes, sections <br/>
<a id="pl.59.29"></a><var>59.29</var>469.1782, subdivision 2, and 645.021, subdivision 3.<br/>
<br/>
<a id="bill.4.17.0"></a><a id="pl.59.30"></a><var>59.30</var>    Sec. 17. <b>CITY OF TAYLORS FALLS; BORDER CITY DEVELOPMENT ZONE.</b><br/>
<a id="pl.60.1"></a><var>60.1</var>    Subdivision 1. <b>Authorization.</b> The governing body of the city of Taylors Falls may <br/>
<a id="pl.60.2"></a><var>60.2</var>designate all or any part of the city as a border city development zone.<br/>
<a id="pl.60.3"></a><var>60.3</var>    Subd. 2. <b>Application of general law.</b> (a) Minnesota Statutes, sections 469.1731 to <br/>
<a id="pl.60.4"></a><var>60.4</var>469.1735, apply to the border city development zones designated under this section. The <br/>
<a id="pl.60.5"></a><var>60.5</var>governing body of the city may exercise the powers granted under Minnesota Statutes, <br/>
<a id="pl.60.6"></a><var>60.6</var>sections 469.1731 to 469.1735, including powers that apply outside of the zones.<br/>
<a id="pl.60.7"></a><var>60.7</var>(b) The allocation under subdivision 3 for purposes of Minnesota Statutes, section <br/>
<a id="pl.60.8"></a><var>60.8</var>469.1735, subdivision 2, is appropriated to the commissioner of revenue.<br/>
<a id="pl.60.9"></a><var>60.9</var>    Subd. 3. <b>Allocation of state tax reductions.</b> (a) The cumulative total amount of the <br/>
<a id="pl.60.10"></a><var>60.10</var>state portion of the tax reductions for all years of the program under Minnesota Statutes, <br/>
<a id="pl.60.11"></a><var>60.11</var>sections 469.1731 to 469.1735, for the city of Taylors Falls, is limited to $100,000.<br/>
<a id="pl.60.12"></a><var>60.12</var>(b) This allocation may be used for tax reductions provided in Minnesota Statutes, <br/>
<a id="pl.60.13"></a><var>60.13</var>section 469.1732 or 469.1734, or for reimbursements under Minnesota Statutes, section <br/>
<a id="pl.60.14"></a><var>60.14</var>469.1735, subdivision 3, but only if the governing body of the city of Taylors Falls <br/>
<a id="pl.60.15"></a><var>60.15</var>determines that the tax reduction or offset is necessary to enable a business to expand <br/>
<a id="pl.60.16"></a><var>60.16</var>within the city or to attract a business to the city.<br/>
<a id="pl.60.17"></a><var>60.17</var>(c) The commissioner of revenue may waive the limit under this subdivision using <br/>
<a id="pl.60.18"></a><var>60.18</var>the same rules and standards provided in Minnesota Statutes, section 469.169, subdivision <br/>
<a id="pl.60.19"></a><var>60.19</var>12, paragraph (b).<br/>
<a id="pl.60.20"></a><var>60.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.18.0"></a><a id="pl.60.21"></a><var>60.21</var>    Sec. 18. <b>APPROPRIATION.</b><br/>
<a id="pl.60.22"></a><var>60.22</var>Except as otherwise provided by law, $500,000 is appropriated to the Minnesota <br/>
<a id="pl.60.23"></a><var>60.23</var>science and technology fund for fiscal year 2012 and any unspent money carries over <br/>
<a id="pl.60.24"></a><var>60.24</var>to fiscal year 2013. Notwithstanding section 116W.32, subdivision 1, clause (4), up to <br/>
<a id="pl.60.25"></a><var>60.25</var>$107,000 of the appropriation may be used for administrative expenses of the authority. <br/>
<a id="pl.60.26"></a><var>60.26</var>This is a onetime appropriation and is not added to the authority's base budget.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="bill.5.1.0"></a><a id="pl.60.29"></a><var>60.29</var>    Section 1. Minnesota Statutes 2010, section 297A.99, subdivision 1, is amended to <br/>
<a id="pl.60.30"></a><var>60.30</var>read:<br/>
<a id="pl.60.31"></a><var>60.31</var>    Subdivision 1. <b>Authorization; scope.</b> (a) A political subdivision of this state may <br/>
<a id="pl.60.32"></a><var>60.32</var>impose a general sales tax (1) under section 
         <statute_ref>297A.992</statute_ref>, (2) under section 
         <statute_ref>297A.993</statute_ref>, (3) if <br/>
<a id="pl.61.1"></a><var>61.1</var>permitted by special law enacted prior to May 20, 2008, or (4) if the political subdivision <br/>
<a id="pl.61.2"></a><var>61.2</var>enacted and imposed the tax before January 1, 1982, and its predecessor provision.<br/>
<a id="pl.61.3"></a><var>61.3</var>    (b) This section governs the imposition of a general sales tax by the political <br/>
<a id="pl.61.4"></a><var>61.4</var>subdivision. The provisions of this section preempt the provisions of any special law:<br/>
<a id="pl.61.5"></a><var>61.5</var>    (1) enacted before June 2, 1997, or<br/>
<a id="pl.61.6"></a><var>61.6</var>    (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law <br/>
<a id="pl.61.7"></a><var>61.7</var>provision from this section's rules by reference.<br/>
<a id="pl.61.8"></a><var>61.8</var>    (c) This section does not apply to or preempt a sales tax on motor vehicles or a <br/>
<a id="pl.61.9"></a><var>61.9</var>special excise tax on motor vehicles.<br/>
<a id="pl.61.10"></a><var>61.10</var>    (d) Until after May 31, 2010, a political subdivision may not advertise, promote, <br/>
<a id="pl.61.11"></a><var>61.11</var>expend funds, or hold a referendum to support imposing a local option sales tax unless <br/>
<a id="pl.61.12"></a><var>61.12</var>it is for extension of an existing tax or the tax was authorized by a special law enacted <br/>
<a id="pl.61.13"></a><var>61.13</var>prior to May 20, 2008.<br/>
<a id="pl.61.14"></a><var>61.14</var>(d) A political subdivision may not advertise or expend funds for the promotion of a <br/>
<a id="pl.61.15"></a><var>61.15</var>referendum to support imposing a local option sales tax. A political subdivision may only <br/>
<a id="pl.61.16"></a><var>61.16</var>expend funds to conduct the referendum.<br/>
<a id="pl.61.17"></a><var>61.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.61.18"></a><var>61.18</var>    Sec. 2. Minnesota Statutes 2010, section 297A.99, subdivision 3, is amended to read:<br/>
<a id="pl.61.19"></a><var>61.19</var>    Subd. 3. <b>Requirements for adoption, use, termination.</b> (a) Imposition of a local <br/>
<a id="pl.61.20"></a><var>61.20</var>sales tax is subject to approval by voters of the political subdivision at a general election. <br/>
<a id="pl.61.21"></a><var>61.21</var>The election must be conducted before the governing body of the political subdivision <br/>
<a id="pl.61.22"></a><var>61.22</var>requests legislative approval of the tax.<br/>
<a id="pl.61.23"></a><var>61.23</var>(b) The proceeds of the tax must be dedicated exclusively to payment of the cost of a <br/>
<a id="pl.61.24"></a><var>61.24</var>specific capital improvement which is designated at least 90 days before the referendum <br/>
<a id="pl.61.25"></a><var>61.25</var>on imposition of the tax is conducted.<br/>
<a id="pl.61.26"></a><var>61.26</var>(c) The tax must terminate after the improvement designated under paragraph (b) <br/>
<a id="pl.61.27"></a><var>61.27</var>has been completed.<br/>
<a id="pl.61.28"></a><var>61.28</var>(d) After a sales tax imposed by a political subdivision has expired or been <br/>
<a id="pl.61.29"></a><var>61.29</var>terminated, the political subdivision is prohibited from imposing a local sales tax for a <br/>
<a id="pl.61.30"></a><var>61.30</var>period of one year. Notwithstanding subdivision 13, this paragraph applies to all local <br/>
<a id="pl.61.31"></a><var>61.31</var>sales taxes in effect at the time of or imposed after May 26, 1999.<br/>
<a id="pl.61.32"></a><var>61.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.61.33"></a><var>61.33</var>    Sec. 3. Minnesota Statutes 2010, section 473.757, subdivision 11, is amended to read:<br/>
<a id="pl.62.1"></a><var>62.1</var>    Subd. 11. <b>Uses of tax.</b> (a) Revenues received from the tax imposed under <br/>
<a id="pl.62.2"></a><var>62.2</var>subdivision 10 may be used:<br/>
<a id="pl.62.3"></a><var>62.3</var>(1) to pay costs of collection;<br/>
<a id="pl.62.4"></a><var>62.4</var>(2) to pay or reimburse or secure the payment of any principal of, premium, or <br/>
<a id="pl.62.5"></a><var>62.5</var>interest on bonds issued in accordance with this act;<br/>
<a id="pl.62.6"></a><var>62.6</var>(3) to pay costs and make expenditures and grants described in this section, including <br/>
<a id="pl.62.7"></a><var>62.7</var>financing costs related to them;<br/>
<a id="pl.62.8"></a><var>62.8</var>(4) to maintain reserves for the foregoing purposes deemed reasonable and <br/>
<a id="pl.62.9"></a><var>62.9</var>appropriate by the county;<br/>
<a id="pl.62.10"></a><var>62.10</var>(5) to pay for operating costs of the ballpark authority other than the cost of <br/>
<a id="pl.62.11"></a><var>62.11</var>operating or maintaining the ballpark; and<br/>
<a id="pl.62.12"></a><var>62.12</var>(6) to make expenditures and grants for youth activities and amateur sports and <br/>
<a id="pl.62.13"></a><var>62.13</var>extension of library hours as described in subdivision 2;<br/>
<a id="pl.62.14"></a><var>62.14</var>and for no other purpose.<br/>
<a id="pl.62.15"></a><var>62.15</var>(b) Revenues from the tax designated for use under paragraph (a), clause (5), must <br/>
<a id="pl.62.16"></a><var>62.16</var>be deposited in the operating fund of the ballpark authority.<br/>
<a id="pl.62.17"></a><var>62.17</var>(c) After completion of the ballpark and public infrastructure, the tax revenues not <br/>
<a id="pl.62.18"></a><var>62.18</var>required for current payments of the expenditures described in paragraph (a), clauses (1) to <br/>
<a id="pl.62.19"></a><var>62.19</var>(6), shall be used to (i) redeem or defease the bonds and (ii) prepay or establish a fund for <br/>
<a id="pl.62.20"></a><var>62.20</var>payment of future obligations under grants or other commitments for future expenditures <br/>
<a id="pl.62.21"></a><var>62.21</var>which are permitted by this section. Upon the redemption or defeasance of the bonds and <br/>
<a id="pl.62.22"></a><var>62.22</var>the establishment of reserves adequate to meet such future obligations, the taxes shall <br/>
<a id="pl.62.23"></a><var>62.23</var>terminate and shall not be reimposed. For purposes of this subdivision, "reserves adequate <br/>
<a id="pl.62.24"></a><var>62.24</var>to meet such future obligations" means a reserve that does not exceed the net present value <br/>
<a id="pl.62.25"></a><var>62.25</var>of the county's obligation to make grants under paragraph (a), clauses (5) and (6), and to <br/>
<a id="pl.62.26"></a><var>62.26</var>fund the reserve for capital improvements required under section 473.759, subdivision 3, <br/>
<a id="pl.62.27"></a><var>62.27</var>for the 30-year period beginning on the date of the original issuance of the bonds, less <br/>
<a id="pl.62.28"></a><var>62.28</var>those obligations that the county has already paid.<br/>
<a id="pl.62.29"></a><var>62.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.62.30"></a><var>62.30</var>    Sec. 4. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by <br/>
<a id="pl.62.31"></a><var>62.31</var>Laws 2006, chapter 259, article 3, section 3, is amended to read:<br/>
<a id="pl.62.32"></a><var>62.32</var>    Subdivision 1. <b>Sales tax authorized.</b> (a) Notwithstanding Minnesota Statutes, <br/>
<a id="pl.62.33"></a><var>62.33</var>section 477A.016, or any other contrary provision of law, ordinance, or city charter, the <br/>
<a id="pl.62.34"></a><var>62.34</var>city of Hermantown may, by ordinance, impose an additional sales tax of up to one <br/>
<a id="pl.62.35"></a><var>62.35</var>percent on sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that <br/>
<a id="pl.63.1"></a><var>63.1</var>occur within the city. The proceeds of the tax imposed under this section must be used to <br/>
<a id="pl.63.2"></a><var>63.2</var>meet the costs of:<br/>
<a id="pl.63.3"></a><var>63.3</var>    (1) extending a sewer interceptor line; <br/>
<a id="pl.63.4"></a><var>63.4</var>    (2) construction of a booster pump station, reservoirs, and related improvements <br/>
<a id="pl.63.5"></a><var>63.5</var>to the water system; and<br/>
<a id="pl.63.6"></a><var>63.6</var>    (3) construction of a building containing a police and fire station and an <br/>
<a id="pl.63.7"></a><var>63.7</var>administrative services facility.<br/>
<a id="pl.63.8"></a><var>63.8</var>(b) If the city imposed a sales tax of only one-half of one percent under paragraph <br/>
<a id="pl.63.9"></a><var>63.9</var>(a), it may increase the tax to one percent to fund the purposes under paragraph (a) <br/>
<a id="pl.63.10"></a><var>63.10</var>provided it is approved by the voters at a general election held before December 31, 2012.<br/>
<a id="pl.63.11"></a><var>63.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following compliance by the <br/>
<a id="pl.63.12"></a><var>63.12</var>city of Hermantown with Minnesota Statutes, section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.63.13"></a><var>63.13</var>    Sec. 5. Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by <br/>
<a id="pl.63.14"></a><var>63.14</var>Laws 2005, First Special Session chapter 3, article 5, section 28, is amended to read:<br/>
<a id="pl.63.15"></a><var>63.15</var>    Subd. 3. <b>Use of revenues.</b> (a) Revenues received from the taxes authorized by <br/>
<a id="pl.63.16"></a><var>63.16</var>subdivisions 1 and 2 must be used by the city to pay for the cost of collecting and <br/>
<a id="pl.63.17"></a><var>63.17</var>administering the taxes and to pay for the following projects:<br/>
<a id="pl.63.18"></a><var>63.18</var>    (1) transportation infrastructure improvements including regional highway and <br/>
<a id="pl.63.19"></a><var>63.19</var>airport improvements;<br/>
<a id="pl.63.20"></a><var>63.20</var>    (2) improvements to the civic center complex;<br/>
<a id="pl.63.21"></a><var>63.21</var>    (3) a municipal water, sewer, and storm sewer project necessary to improve regional <br/>
<a id="pl.63.22"></a><var>63.22</var>ground water quality; and<br/>
<a id="pl.63.23"></a><var>63.23</var>    (4) construction of a regional recreation and sports center and other higher education <br/>
<a id="pl.63.24"></a><var>63.24</var>facilities available for both community and student use.<br/>
<a id="pl.63.25"></a><var>63.25</var>    (b) The total amount of capital expenditures or bonds for these projects listed in <br/>
<a id="pl.63.26"></a><var>63.26</var>paragraph (a) that may be paid from the revenues raised from the taxes authorized in this <br/>
<a id="pl.63.27"></a><var>63.27</var>section may not exceed $111,500,000. The total amount of capital expenditures or bonds <br/>
<a id="pl.63.28"></a><var>63.28</var>for the project in clause (4) that may be paid from the revenues raised from the taxes <br/>
<a id="pl.63.29"></a><var>63.29</var>authorized in this section may not exceed $28,000,000.<br/>
<a id="pl.63.30"></a><var>63.30</var>(c) In addition to the projects authorized in paragraph (a) and not subject to the <br/>
<a id="pl.63.31"></a><var>63.31</var>amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an <br/>
<a id="pl.63.32"></a><var>63.32</var>election under subdivision 5, paragraph (c), use the revenues received from the taxes and <br/>
<a id="pl.63.33"></a><var>63.33</var>bonds authorized in this section to pay the costs of or bonds for the following purposes:<br/>
<a id="pl.63.34"></a><var>63.34</var>(1) $17,000,000 for capital expenditures and bonds for the following Olmsted <br/>
<a id="pl.63.35"></a><var>63.35</var>County transportation infrastructure improvements:<br/>
<a id="pl.64.1"></a><var>64.1</var>(i) County State Aid Highway 34 reconstruction;<br/>
<a id="pl.64.2"></a><var>64.2</var>(ii) Trunk Highway 63 and County State Aid Highway 16 interchange; <br/>
<a id="pl.64.3"></a><var>64.3</var>(iii) phase II of the Trunk Highway 52 and County State Aid Highway 22 <br/>
<a id="pl.64.4"></a><var>64.4</var>interchange;<br/>
<a id="pl.64.5"></a><var>64.5</var>(iv) widening of County State Aid Highway 22 West Circle Drive; and <br/>
<a id="pl.64.6"></a><var>64.6</var>(v) 60th Avenue Northwest corridor preservation;<br/>
<a id="pl.64.7"></a><var>64.7</var>(2) $30,000,000 for city transportation projects including:<br/>
<a id="pl.64.8"></a><var>64.8</var>(i) Trunk Highway 52 and 65th Street interchange;<br/>
<a id="pl.64.9"></a><var>64.9</var>(ii) NW transportation corridor acquisition; <br/>
<a id="pl.64.10"></a><var>64.10</var>(iii) Phase I of the Trunk Highway 52 and County State Aid Highway 22 interchange;<br/>
<a id="pl.64.11"></a><var>64.11</var>(iv) Trunk Highway 14 and Trunk Highway 63 intersection;<br/>
<a id="pl.64.12"></a><var>64.12</var>(v) Southeast transportation corridor acquisition;<br/>
<a id="pl.64.13"></a><var>64.13</var>(vi) Rochester International Airport expansion; and <br/>
<a id="pl.64.14"></a><var>64.14</var>(vii) a transit operations center bus facility;<br/>
<a id="pl.64.15"></a><var>64.15</var>(3) $14,000,000 for the University of Minnesota Rochester academic and <br/>
<a id="pl.64.16"></a><var>64.16</var>complementary facilities;<br/>
<a id="pl.64.17"></a><var>64.17</var>(4) $6,500,000 for the Rochester Community and Technical College/Winona State <br/>
<a id="pl.64.18"></a><var>64.18</var>University career technical education and science and math facilities;<br/>
<a id="pl.64.19"></a><var>64.19</var>(5) $6,000,000 for the Rochester Community and Technical College regional <br/>
<a id="pl.64.20"></a><var>64.20</var>recreation facilities at University Center Rochester;<br/>
<a id="pl.64.21"></a><var>64.21</var>(6) $20,000,000 for the Destination Medical Community Initiative;<br/>
<a id="pl.64.22"></a><var>64.22</var>(7) $8,000,000 for the regional public safety and 911 dispatch center facilities;<br/>
<a id="pl.64.23"></a><var>64.23</var>(8) $20,000,000 for a regional recreation/senior center;<br/>
<a id="pl.64.24"></a><var>64.24</var>(9) $10,000,000 for an economic development fund; and<br/>
<a id="pl.64.25"></a><var>64.25</var>(10) $8,000,000 for downtown infrastructure.<br/>
<a id="pl.64.26"></a><var>64.26</var>(d) No revenues from the taxes raised from the taxes authorized in subdivisions 1 <br/>
<a id="pl.64.27"></a><var>64.27</var>and 2 may be used to fund transportation improvements related to a railroad bypass that <br/>
<a id="pl.64.28"></a><var>64.28</var>would divert traffic from the city of Rochester.<br/>
<a id="pl.64.29"></a><var>64.29</var>(e) The city shall use $5,000,000 of the money allocated to the purpose in paragraph <br/>
<a id="pl.64.30"></a><var>64.30</var>(c), clause (9), for grants to the cities of Byron, Chatfield, Dodge Center, Dover, Elgin, <br/>
<a id="pl.64.31"></a><var>64.31</var>Eyota, Kasson, Mantorville, Oronoco, Pine Island, Plainview, St. Charles, Stewartville, <br/>
<a id="pl.64.32"></a><var>64.32</var>Zumbrota, Spring Valley, West Concord, and Hayfield for economic development projects <br/>
<a id="pl.64.33"></a><var>64.33</var>that these communities would fund through their economic development authority or <br/>
<a id="pl.64.34"></a><var>64.34</var>housing and redevelopment authority.<br/>
<a id="pl.64.35"></a><var>64.35</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.6.0"></a><a id="pl.65.1"></a><var>65.1</var>    Sec. 6. Laws 1998, chapter 389, article 8, section 43, subdivision 4, as amended by <br/>
<a id="pl.65.2"></a><var>65.2</var>Laws 2005, First Special Session chapter 3, article 5, section 29, is amended to read:<br/>
<a id="pl.65.3"></a><var>65.3</var>    Subd. 4. <b>Bonding authority.</b> (a) The city may issue bonds under Minnesota <br/>
<a id="pl.65.4"></a><var>65.4</var>Statutes, chapter 475, to finance the capital expenditure and improvement projects. <br/>
<a id="pl.65.5"></a><var>65.5</var>An election to approve up to $71,500,000 in bonds under Minnesota Statutes, section <br/>
<statute_ref><a id="pl.65.6"></a><var>65.6</var>475.58
         </statute_ref>, may be held in combination with the election to authorize imposition of the tax <br/>
<a id="pl.65.7"></a><var>65.7</var>under subdivision 1. Whether to permit imposition of the tax and issuance of bonds <br/>
<a id="pl.65.8"></a><var>65.8</var>may be posed to the voters as a single question. The question must state that the sales <br/>
<a id="pl.65.9"></a><var>65.9</var>tax revenues are pledged to pay the bonds, but that the bonds are general obligations <br/>
<a id="pl.65.10"></a><var>65.10</var>and will be guaranteed by the city's property taxes. An election to approve up to an <br/>
<a id="pl.65.11"></a><var>65.11</var>additional $40,000,000 of bonds under Minnesota Statutes, section 
         <statute_ref>475.58</statute_ref>, may be held <br/>
<a id="pl.65.12"></a><var>65.12</var>in combination with the election to authorize extension of the tax under subdivision 5, <br/>
<a id="pl.65.13"></a><var>65.13</var>paragraph (b). An election to approve bonds under Minnesota Statutes, section 475.58, <br/>
<a id="pl.65.14"></a><var>65.14</var>in an amount not to exceed $139,500,000 plus an amount equal to the costs of issuance <br/>
<a id="pl.65.15"></a><var>65.15</var>of the bonds, may be held in combination with the election to authorize the extension of <br/>
<a id="pl.65.16"></a><var>65.16</var>the tax under subdivision 5, paragraph (c).<br/>
<a id="pl.65.17"></a><var>65.17</var>    (b) The city may shall enter into an agreement with Olmsted County under which the <br/>
<a id="pl.65.18"></a><var>65.18</var>city and the county agree to jointly undertake and finance certain roadway infrastructure <br/>
<a id="pl.65.19"></a><var>65.19</var>improvements. The agreement may shall provide that the city will make available to the <br/>
<a id="pl.65.20"></a><var>65.20</var>county a portion of the sales tax revenues collected pursuant to the authority granted in <br/>
<a id="pl.65.21"></a><var>65.21</var>this section and the bonding authority provided in this subdivision. The county may, <br/>
<a id="pl.65.22"></a><var>65.22</var>pursuant to the agreement, issue its general obligation bonds in a principal amount not <br/>
<a id="pl.65.23"></a><var>65.23</var>exceeding the amount authorized by its agreement with the city payable primarily from <br/>
<a id="pl.65.24"></a><var>65.24</var>the sales tax revenues from the city under the agreement. The county's bonds must be <br/>
<a id="pl.65.25"></a><var>65.25</var>issued in accordance with the provisions of Minnesota Statutes, chapter 475, except that <br/>
<a id="pl.65.26"></a><var>65.26</var>no election is required for the issuance of the bonds and the bonds are not included in <br/>
<a id="pl.65.27"></a><var>65.27</var>the net debt of the county.<br/>
<a id="pl.65.28"></a><var>65.28</var>    (b) (c) The issuance of bonds under this subdivision is not subject to Minnesota <br/>
<a id="pl.65.29"></a><var>65.29</var>Statutes, section 
         <statute_ref>275.60</statute_ref>.<br/>
<a id="pl.65.30"></a><var>65.30</var>    (c) (d)  The bonds are not included in computing any debt limitation applicable to the <br/>
<a id="pl.65.31"></a><var>65.31</var>city, and the levy of taxes under Minnesota Statutes, section 
         <statute_ref>475.61</statute_ref>, to pay principal of <br/>
<a id="pl.65.32"></a><var>65.32</var>and interest on the bonds is not subject to any levy limitation.<br/>
<a id="pl.65.33"></a><var>65.33</var>    (e) The aggregate principal amount of bonds, plus the aggregate of the taxes used <br/>
<a id="pl.65.34"></a><var>65.34</var>directly to pay eligible capital expenditures and improvements for projects listed in <br/>
<a id="pl.65.35"></a><var>65.35</var>subdivision 3, paragraph (a), may not exceed $111,500,000, plus an amount equal to the <br/>
<a id="pl.65.36"></a><var>65.36</var>costs related to issuance of the bonds. The aggregate principal amount of bonds plus the <br/>
<a id="pl.66.1"></a><var>66.1</var>aggregate of the taxes used directly to pay the costs of eligible projects under subdivision <br/>
<a id="pl.66.2"></a><var>66.2</var>3, paragraph (c), may not exceed $139,500,000 plus an amount equal to the costs of <br/>
<a id="pl.66.3"></a><var>66.3</var>issuance of the bonds.<br/>
<a id="pl.66.4"></a><var>66.4</var>    (d) (f) The taxes may be pledged to and used for the payment of the bonds and <br/>
<a id="pl.66.5"></a><var>66.5</var>any bonds issued to refund them, only if the bonds and any refunding bonds are general <br/>
<a id="pl.66.6"></a><var>66.6</var>obligations of the city.<br/>
<a id="pl.66.7"></a><var>66.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.7.0"></a><a id="pl.66.8"></a><var>66.8</var>    Sec. 7. Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by <br/>
<a id="pl.66.9"></a><var>66.9</var>Laws 2005, First Special Session chapter 3, article 5, section 30, is amended to read:<br/>
<a id="pl.66.10"></a><var>66.10</var>    Subd. 5. <b>Termination of taxes.</b> (a) The taxes imposed under subdivisions 1 and <br/>
<a id="pl.66.11"></a><var>66.11</var>2 expire at the later of (1) December 31, 2009, or (2) when the city council determines <br/>
<a id="pl.66.12"></a><var>66.12</var>that sufficient funds have been received from the taxes to finance the first $71,500,000 <br/>
<a id="pl.66.13"></a><var>66.13</var>of capital expenditures and bonds for the projects authorized in subdivision 3, including <br/>
<a id="pl.66.14"></a><var>66.14</var>the amount to prepay or retire at maturity the principal, interest, and premium due on any <br/>
<a id="pl.66.15"></a><var>66.15</var>bonds issued for the projects under subdivision 4, unless the taxes are extended as allowed <br/>
<a id="pl.66.16"></a><var>66.16</var>in paragraph (b). Any funds remaining after completion of the project and retirement or <br/>
<a id="pl.66.17"></a><var>66.17</var>redemption of the bonds shall also be used to fund the projects under subdivision 3. The <br/>
<a id="pl.66.18"></a><var>66.18</var>taxes imposed under subdivisions 1 and 2 may expire at an earlier time if the city so <br/>
<a id="pl.66.19"></a><var>66.19</var>determines by ordinance.<br/>
<a id="pl.66.20"></a><var>66.20</var>    (b) Notwithstanding Minnesota Statutes, sections 
         <statute_ref>297A.99</statute_ref> and 
         <statute_ref>477A.016</statute_ref>, or any <br/>
<a id="pl.66.21"></a><var>66.21</var>other contrary provision of law, ordinance, or city charter, the city of Rochester may, by <br/>
<a id="pl.66.22"></a><var>66.22</var>ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009, <br/>
<a id="pl.66.23"></a><var>66.23</var>if approved by the voters of the city at a special election in 2005 or the general election in <br/>
<a id="pl.66.24"></a><var>66.24</var>2006. The question put to the voters must indicate that an affirmative vote would allow <br/>
<a id="pl.66.25"></a><var>66.25</var>up to an additional $40,000,000 of sales tax revenues be raised and up to $40,000,000 <br/>
<a id="pl.66.26"></a><var>66.26</var>of bonds to be issued above the amount authorized in the June 23, 1998, referendum for <br/>
<a id="pl.66.27"></a><var>66.27</var>the projects specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are <br/>
<a id="pl.66.28"></a><var>66.28</var>extended under this paragraph, the taxes expire when the city council determines that <br/>
<a id="pl.66.29"></a><var>66.29</var>sufficient funds have been received from the taxes to finance the projects and to prepay <br/>
<a id="pl.66.30"></a><var>66.30</var>or retire at maturity the principal, interest, and premium due on any bonds issued for the <br/>
<a id="pl.66.31"></a><var>66.31</var>projects under subdivision 4. Any funds remaining after completion of the project and <br/>
<a id="pl.66.32"></a><var>66.32</var>retirement or redemption of the bonds may be placed in the general fund of the city.<br/>
<a id="pl.66.33"></a><var>66.33</var>(c) Notwithstanding Minnesota Statutes, sections 
<statute_ref>297A.99</statute_ref> and 
<statute_ref>477A.016</statute_ref>, or any <br/>
<a id="pl.66.34"></a><var>66.34</var>other contrary provision of law, ordinance, or city charter, the city of Rochester may, by <br/>
<a id="pl.66.35"></a><var>66.35</var>ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond the date the city <br/>
<a id="pl.67.1"></a><var>67.1</var>council determines that sufficient funds have been received from the taxes to finance <br/>
<a id="pl.67.2"></a><var>67.2</var>$111,500,000 of expenditures and bonds for the projects authorized in subdivision 3, <br/>
<a id="pl.67.3"></a><var>67.3</var>paragraph (a), plus an amount equal to the costs of issuance of the bonds and including <br/>
<a id="pl.67.4"></a><var>67.4</var>the amount to prepay or retire at maturity the principal, interest, and premiums due on <br/>
<a id="pl.67.5"></a><var>67.5</var>any bonds issued for the projects under subdivision 4, paragraph (a), if approved by the <br/>
<a id="pl.67.6"></a><var>67.6</var>voters of the city at the general election in 2012. If the election to authorize the additional <br/>
<a id="pl.67.7"></a><var>67.7</var>$139,500,000 of bonds plus an amount equal to the costs of the issuance of the bonds is <br/>
<a id="pl.67.8"></a><var>67.8</var>placed on the general election ballot in 2012, the city may continue to collect the taxes <br/>
<a id="pl.67.9"></a><var>67.9</var>authorized in subdivisions 1 and 2 until December 31, 2012. The question put to the <br/>
<a id="pl.67.10"></a><var>67.10</var>voters must indicate that an affirmative vote would allow sales tax revenues be raised for <br/>
<a id="pl.67.11"></a><var>67.11</var>an extended period of time and an additional $139,500,000 of bonds plus an amount <br/>
<a id="pl.67.12"></a><var>67.12</var>equal to the costs of issuance of the bonds, to be issued above the amount authorized in <br/>
<a id="pl.67.13"></a><var>67.13</var>the previous elections required under paragraphs (a) and (b) for the projects and amounts <br/>
<a id="pl.67.14"></a><var>67.14</var>specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are extended <br/>
<a id="pl.67.15"></a><var>67.15</var>under this paragraph, the taxes expire when the city council determines that $139,500,000 <br/>
<a id="pl.67.16"></a><var>67.16</var>has been received from the taxes to finance the projects plus an amount sufficient to <br/>
<a id="pl.67.17"></a><var>67.17</var>prepay or retire at maturity the principal, interest, and premium due on any bonds issued <br/>
<a id="pl.67.18"></a><var>67.18</var>for the projects under subdivision 4, including any bonds issued to refund the bonds. Any <br/>
<a id="pl.67.19"></a><var>67.19</var>funds remaining after completion of the projects and retirement or redemption of the <br/>
<a id="pl.67.20"></a><var>67.20</var>bonds may be placed in the general fund of the city.<br/>
<a id="pl.67.21"></a><var>67.21</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.67.22"></a><var>67.22</var>governing body of the city of Rochester with Minnesota Statutes, section 645.021, <br/>
<a id="pl.67.23"></a><var>67.23</var>subdivision 3.<br/>
<br/>
<a id="bill.5.8.0"></a><a id="pl.67.24"></a><var>67.24</var>    Sec. 8. Laws 2008, chapter 366, article 7, section 19, subdivision 3, is amended to read:<br/>
<a id="pl.67.25"></a><var>67.25</var>    Subd. 3. <b>Use of revenues.</b> Notwithstanding Minnesota Statutes, section 297A.99, <br/>
<a id="pl.67.26"></a><var>67.26</var>subdivision 3, paragraph (b), the proceeds of the tax imposed under this section shall be <br/>
<a id="pl.67.27"></a><var>67.27</var>used to pay for the costs of acquisition, construction, improvement, and development of <br/>
<a id="pl.67.28"></a><var>67.28</var>a regional parks, bicycle trails, park land, open space, and pedestrian bridge walkways, <br/>
<a id="pl.67.29"></a><var>67.29</var>as described in the city improvement plan adopted by the city council by resolution on <br/>
<a id="pl.67.30"></a><var>67.30</var>December 12, 2006, and land and buildings for a community and recreation center. The <br/>
<a id="pl.67.31"></a><var>67.31</var>total amount of revenues from the taxes in subdivisions 1 and 2 that may be used to fund <br/>
<a id="pl.67.32"></a><var>67.32</var>these projects is $12,000,000 plus any associated bond costs.<br/>
<a id="pl.68.1"></a><var>68.1</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.68.2"></a><var>68.2</var>governing body of the city of Clearwater with Minnesota Statutes, section 645.021, <br/>
<a id="pl.68.3"></a><var>68.3</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.9.0"></a><a id="pl.68.4"></a><var>68.4</var>    Sec. 9. Laws 2010, chapter 389, article 5, section 6, subdivision 1, is amended to read:<br/>
<a id="pl.68.5"></a><var>68.5</var>    Subdivision 1. <b>Authorization.</b> Notwithstanding Minnesota Statutes, section <br/>
<statute_ref><a id="pl.68.6"></a><var>68.6</var>297A.99, subdivisions 1
         </statute_ref>, 2, and 3, or 
         <statute_ref>477A.016</statute_ref>, or any other law, ordinance, or city <br/>
<a id="pl.68.7"></a><var>68.7</var>charter, the city of Marshall, if imposed within two three years of the date of final <br/>
<a id="pl.68.8"></a><var>68.8</var>enactment of this section, may impose any or all of the taxes described in this section.<br/>
<a id="pl.68.9"></a><var>68.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.10.0"></a><a id="pl.68.10"></a><var>68.10</var>    Sec. 10. <b>CITY OF CLOQUET; TAXES AUTHORIZED.</b><br/>
<a id="pl.68.11"></a><var>68.11</var>    Subdivision 1. <b>Sales and use tax.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.68.12"></a><var>68.12</var>297A.99, subdivision 1, 477A.016, or any other provision of law, ordinance, or city <br/>
<a id="pl.68.13"></a><var>68.13</var>charter, if approved by the voters pursuant to Minnesota Statutes, section 297A.99, the <br/>
<a id="pl.68.14"></a><var>68.14</var>city of Cloquet may impose by ordinance a sales and use tax of up to one-half of one <br/>
<a id="pl.68.15"></a><var>68.15</var>percent for the purposes specified in subdivision 3. Except as provided in this section, the <br/>
<a id="pl.68.16"></a><var>68.16</var>provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, <br/>
<a id="pl.68.17"></a><var>68.17</var>collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.68.18"></a><var>68.18</var>    Subd. 2. <b>Excise tax authorized.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.68.19"></a><var>68.19</var>297A.99, subdivision 1, 477A.016, or any other provision of law, ordinance, or city <br/>
<a id="pl.68.20"></a><var>68.20</var>charter, the city of Cloquet may impose by ordinance, for the purposes specified in <br/>
<a id="pl.68.21"></a><var>68.21</var>subdivision 3, an excise tax of up to $20 per motor vehicle, as defined by ordinance, <br/>
<a id="pl.68.22"></a><var>68.22</var>purchased or acquired from any person engaged within the city in the business of selling <br/>
<a id="pl.68.23"></a><var>68.23</var>motor vehicles at retail.<br/>
<a id="pl.68.24"></a><var>68.24</var>    Subd. 3. <b>Use of revenues.</b> Revenues received from taxes authorized by subdivisions <br/>
<a id="pl.68.25"></a><var>68.25</var>1 and 2 must be used by the city to pay the cost of collecting the taxes and to pay for the <br/>
<a id="pl.68.26"></a><var>68.26</var>following projects:<br/>
<a id="pl.68.27"></a><var>68.27</var>    (1) $4,500,000 for construction and completion of park improvement projects, <br/>
<a id="pl.68.28"></a><var>68.28</var>including St. Louis River riverfront improvements; Veteran's Park construction and <br/>
<a id="pl.68.29"></a><var>68.29</var>improvements; improvements to the Hilltop Park soccer complex and Braun Park baseball <br/>
<a id="pl.68.30"></a><var>68.30</var>complex; capital equipment and building and grounds improvements at the Pine Valley <br/>
<a id="pl.68.31"></a><var>68.31</var>Park/Pine Valley Hockey Arena/Cloquet Area Recreation Center; and development of <br/>
<a id="pl.68.32"></a><var>68.32</var>pedestrian trails within the city;<br/>
<a id="pl.69.1"></a><var>69.1</var>    (2) $5,800,00 for extension of utilities and the construction of all improvements <br/>
<a id="pl.69.2"></a><var>69.2</var>associated with the development of property adjacent to Highway 33 and Interstate <br/>
<a id="pl.69.3"></a><var>69.3</var>Highway 35, including payment of all debt service on bonds issued for these; and<br/>
<a id="pl.69.4"></a><var>69.4</var>(3) $6,200,000 for engineering and construction of infrastructure improvements, <br/>
<a id="pl.69.5"></a><var>69.5</var>including, but not limited to, storm sewer, sanitary sewer, and water in areas identified as <br/>
<a id="pl.69.6"></a><var>69.6</var>part of the city's comprehensive land use plan.<br/>
<a id="pl.69.7"></a><var>69.7</var>    Authorized expenses include, but are not limited to, acquiring property and paying <br/>
<a id="pl.69.8"></a><var>69.8</var>construction expenses related to these improvements, and paying debt service on bonds or <br/>
<a id="pl.69.9"></a><var>69.9</var>other obligations issued to finance acquisition and construction of these improvements.<br/>
<a id="pl.69.10"></a><var>69.10</var>    Subd. 4. <b>Bonding authority.</b> (a) The city may issue bonds under Minnesota <br/>
<a id="pl.69.11"></a><var>69.11</var>Statutes, chapter 475, to pay capital and administrative expenses for the improvements <br/>
<a id="pl.69.12"></a><var>69.12</var>described in subdivision 3 in an amount that does not exceed $16,500,000. An election to <br/>
<a id="pl.69.13"></a><var>69.13</var>approve the bonds under Minnesota Statutes, section 475.58, is not required.<br/>
<a id="pl.69.14"></a><var>69.14</var>    (b) The issuance of bonds under this subdivision is not subject to Minnesota Statutes, <br/>
<a id="pl.69.15"></a><var>69.15</var>sections 275.60 and 275.61.<br/>
<a id="pl.69.16"></a><var>69.16</var>    (c) The debt represented by the bonds is not included in computing any debt <br/>
<a id="pl.69.17"></a><var>69.17</var>limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section <br/>
<a id="pl.69.18"></a><var>69.18</var>475.61, to pay principal of and interest on the bonds is not subject to any levy limitation.<br/>
<a id="pl.69.19"></a><var>69.19</var>    Subd. 5. <b>Termination of taxes.</b> The taxes imposed under subdivisions 1 and 2 <br/>
<a id="pl.69.20"></a><var>69.20</var>expire at the earlier of (1) 30 years, or (2) when the city council determines that the amount <br/>
<a id="pl.69.21"></a><var>69.21</var>of revenues received from the taxes to finance the improvements described in subdivision <br/>
<a id="pl.69.22"></a><var>69.22</var>3 first equals or exceeds $16,500,000, plus the additional amount needed to pay the costs <br/>
<a id="pl.69.23"></a><var>69.23</var>related to issuance of bonds under subdivision 4, including interest on the bonds. Any <br/>
<a id="pl.69.24"></a><var>69.24</var>funds remaining after completion of the project and retirement or redemption of the bonds <br/>
<a id="pl.69.25"></a><var>69.25</var>may be placed in the general fund of the city.  The taxes imposed under subdivisions 1 and <br/>
<a id="pl.69.26"></a><var>69.26</var>2 may expire at an earlier time if the city so determines by ordinance.<br/>
<a id="pl.69.27"></a><var>69.27</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.69.28"></a><var>69.28</var>the city of Cloquet and its chief clerical officer timely comply with Minnesota Statutes, <br/>
<a id="pl.69.29"></a><var>69.29</var>section 645.021, subdivisions 2 and 3. <br/>
<br/>
<a id="bill.5.11.0"></a><a id="pl.69.30"></a><var>69.30</var>    Sec. 11. <b>CITY OF FERGUS FALLS; SALES AND USE TAX AUTHORIZED.</b><br/>
<a id="pl.69.31"></a><var>69.31</var>    Subdivision 1. <b>Sales and use tax.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.69.32"></a><var>69.32</var>297A.99, subdivision 1, or 477A.016, or any other provision of law, ordinance, or city <br/>
<a id="pl.69.33"></a><var>69.33</var>charter, as approved by the voters at the November 2, 2010 general election, the city <br/>
<a id="pl.70.1"></a><var>70.1</var>of Fergus Falls may impose by ordinance a sales and use tax of up to one-half of one <br/>
<a id="pl.70.2"></a><var>70.2</var>percent for the purposes specified in subdivision 2.  Except as provided in this section, the <br/>
<a id="pl.70.3"></a><var>70.3</var>provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, <br/>
<a id="pl.70.4"></a><var>70.4</var>collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.70.5"></a><var>70.5</var>    Subd. 2. <b>Use of revenues.</b> Revenues received from taxes authorized by subdivision <br/>
<a id="pl.70.6"></a><var>70.6</var>1 must be used by the city of Fergus Falls to pay the cost of collecting the tax and to pay for <br/>
<a id="pl.70.7"></a><var>70.7</var>all or part of the costs of the acquisition and betterment of a regional community ice arena <br/>
<a id="pl.70.8"></a><var>70.8</var>facility. Authorized expenses include, but are not limited to, acquiring property, predesign, <br/>
<a id="pl.70.9"></a><var>70.9</var>design, and paying construction, furnishing, and equipment costs related to the facility and <br/>
<a id="pl.70.10"></a><var>70.10</var>paying debt service on bonds or other obligations issued by the Fergus Falls Port Authority <br/>
<a id="pl.70.11"></a><var>70.11</var>to finance the facility. The amount of revenues from the tax imposed under subdivision 1 <br/>
<a id="pl.70.12"></a><var>70.12</var>that may be used to finance the facility and any associated costs is limited to $6,600,000.<br/>
<a id="pl.70.13"></a><var>70.13</var>    Subd. 3. <b>Termination of taxes.</b> The tax imposed under this section expires when <br/>
<a id="pl.70.14"></a><var>70.14</var>the Fergus Falls City Council determines that sufficient funds have been received from <br/>
<a id="pl.70.15"></a><var>70.15</var>the taxes to finance the facility and to prepay or retire at maturity the principal, interest, <br/>
<a id="pl.70.16"></a><var>70.16</var>and premium due on any bonds, including refunding bonds, issued by the Fergus Falls <br/>
<a id="pl.70.17"></a><var>70.17</var>Port Authority for the facility. Any funds remaining after completion of the facility and <br/>
<a id="pl.70.18"></a><var>70.18</var>retirement or redemption of the bonds may be placed in the general fund of the city of <br/>
<a id="pl.70.19"></a><var>70.19</var>Fergus Falls. The tax imposed under subdivision 1 may expire at an earlier time if the <br/>
<a id="pl.70.20"></a><var>70.20</var>city so determines by ordinance.<br/>
<a id="pl.70.21"></a><var>70.21</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body <br/>
<a id="pl.70.22"></a><var>70.22</var>of the city of Fergus Falls and its chief clerical officer timely comply with Minnesota <br/>
<a id="pl.70.23"></a><var>70.23</var>Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.12.0"></a><a id="pl.70.24"></a><var>70.24</var>    Sec. 12. <b>CITY OF HUTCHINSON; TAXES AUTHORIZED.</b><br/>
<a id="pl.70.25"></a><var>70.25</var>    Subdivision 1. <b>Sales and use tax.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.70.26"></a><var>70.26</var>477A.016, or any other provision of law, ordinance, or city charter, as approved by <br/>
<a id="pl.70.27"></a><var>70.27</var>the voters at a referendum held at the 2010 general election, the city of Hutchinson <br/>
<a id="pl.70.28"></a><var>70.28</var>may impose by ordinance a sales and use tax of up to one-half of one percent for the <br/>
<a id="pl.70.29"></a><var>70.29</var>purposes specified in subdivision 3. Except as otherwise provided in this section, <br/>
<a id="pl.70.30"></a><var>70.30</var>Minnesota Statutes, section 297A.99, governs the imposition, administration, collection, <br/>
<a id="pl.70.31"></a><var>70.31</var>and enforcement of the tax authorized under this subdivision. Minnesota Statutes, section <br/>
<a id="pl.70.32"></a><var>70.32</var>297A.99, subdivision 1, paragraph (d), does not apply to this section.<br/>
<a id="pl.71.1"></a><var>71.1</var>    Subd. 2. <b>Excise tax authorized.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.71.2"></a><var>71.2</var>477A.016, or any other provision of law, ordinance, or city charter, the city of Hutchinson <br/>
<a id="pl.71.3"></a><var>71.3</var>may impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up <br/>
<a id="pl.71.4"></a><var>71.4</var>to $20 per motor vehicle, as defined by ordinance, purchased or acquired from any person <br/>
<a id="pl.71.5"></a><var>71.5</var>engaged within the city in the business of selling motor vehicles at retail.<br/>
<a id="pl.71.6"></a><var>71.6</var>    Subd. 3. <b>Use of revenues.</b> Revenues received from the taxes authorized by this <br/>
<a id="pl.71.7"></a><var>71.7</var>section must be used to pay the cost of collecting and administering the tax and to finance <br/>
<a id="pl.71.8"></a><var>71.8</var>the costs of constructing the water treatment facility and renovating the wastewater <br/>
<a id="pl.71.9"></a><var>71.9</var>treatment facility in the city of Hutchinson. Authorized costs include, but are not limited <br/>
<a id="pl.71.10"></a><var>71.10</var>to, construction and engineering costs of the projects and associated bond costs.<br/>
<a id="pl.71.11"></a><var>71.11</var>    Subd. 4. <b>Termination of tax.</b> The taxes authorized under subdivisions 1 and 2 <br/>
<a id="pl.71.12"></a><var>71.12</var>terminate at the earlier of: (1) 18 years after the date of initial imposition of the tax; or <br/>
<a id="pl.71.13"></a><var>71.13</var>(2) when the Hutchinson City Council determines that the amount of revenues raised is <br/>
<a id="pl.71.14"></a><var>71.14</var>sufficient to pay for the projects under subdivision 3, plus the amount needed to finance <br/>
<a id="pl.71.15"></a><var>71.15</var>the capital and administrative costs for the projects specified in subdivision 3, and to repay <br/>
<a id="pl.71.16"></a><var>71.16</var>or retire at maturity the principal, interest, and premium due on any bonds issued for the <br/>
<a id="pl.71.17"></a><var>71.17</var>projects. Any funds remaining after completion of the projects specified in subdivision <br/>
<a id="pl.71.18"></a><var>71.18</var>3 and retirement or redemption of the associated bonds may be placed in the general <br/>
<a id="pl.71.19"></a><var>71.19</var>fund of the city. The taxes imposed under subdivisions 1 and 2 may expire at an earlier <br/>
<a id="pl.71.20"></a><var>71.20</var>time if the city so determines by ordinance. <br/>
<a id="pl.71.21"></a><var>71.21</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.71.22"></a><var>71.22</var>governing body of the city of Hutchinson with Minnesota Statutes, section 645.021, <br/>
<a id="pl.71.23"></a><var>71.23</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.13.0"></a><a id="pl.71.24"></a><var>71.24</var>    Sec. 13. <b>CITY OF LANESBORO; SALES AND USE TAX AUTHORIZED.</b><br/>
<a id="pl.71.25"></a><var>71.25</var>    Subdivision 1. <b>Sales and use tax authorized.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.71.26"></a><var>71.26</var>sections 297A.99, subdivision 1, and 477A.016, or any other provision of law, ordinance, <br/>
<a id="pl.71.27"></a><var>71.27</var>or city charter, as approved by the voters at the November 2, 2010, general election, the <br/>
<a id="pl.71.28"></a><var>71.28</var>city of Lanesboro may impose by ordinance a sales and use tax of up to one-half of one <br/>
<a id="pl.71.29"></a><var>71.29</var>percent for the purposes specified in subdivision 2. Except as provided in this section, <br/>
<a id="pl.71.30"></a><var>71.30</var>the provisions of Minnesota Statutes, section 297A.99, govern the imposition of the tax <br/>
<a id="pl.71.31"></a><var>71.31</var>authorized under this subdivision.<br/>
<a id="pl.71.32"></a><var>71.32</var>    Subd. 2. <b>Use of revenues.</b> Revenues received from the tax authorized under <br/>
<a id="pl.71.33"></a><var>71.33</var>subdivision 1 must be used by the city of Lanesboro to pay the costs of collecting the tax <br/>
<a id="pl.72.1"></a><var>72.1</var>and to pay for all or a part of the improvements to city streets and utility systems, and the <br/>
<a id="pl.72.2"></a><var>72.2</var>betterment of city municipal buildings consisting of (i) street and utility improvements to <br/>
<a id="pl.72.3"></a><var>72.3</var>Calhoun Avenue, Fillmore Avenue, Kenilworth Avenue, Pleasant Street, Kirkwood Street, <br/>
<a id="pl.72.4"></a><var>72.4</var>Auburn Avenue, and Zenith Street, and street light replacement on State Highways 250 <br/>
<a id="pl.72.5"></a><var>72.5</var>and 16; (ii) improvements to utility systems consisting of wastewater treatment facility <br/>
<a id="pl.72.6"></a><var>72.6</var>improvements and electric utility improvements to the Lanesboro High Hazard Dam; and <br/>
<a id="pl.72.7"></a><var>72.7</var>(iii) improvements to the Lanesboro community center, library, and city hall, including <br/>
<a id="pl.72.8"></a><var>72.8</var>paying debt service on bonds or other obligations issued to fund these projects under <br/>
<a id="pl.72.9"></a><var>72.9</var>subdivision 3. The total amount of revenues from the taxes in subdivision 1 that may be <br/>
<a id="pl.72.10"></a><var>72.10</var>used to fund these projects is $800,000 plus any associated bond costs.<br/>
<a id="pl.72.11"></a><var>72.11</var>    Subd. 3. <b>Bonding authority.</b> The city of Lanesboro may issue bonds under <br/>
<a id="pl.72.12"></a><var>72.12</var>Minnesota Statutes, chapter 475, to pay capital and administrative expenses related to the <br/>
<a id="pl.72.13"></a><var>72.13</var>projects authorized in subdivision 2. An election to approve the bonds under Minnesota <br/>
<a id="pl.72.14"></a><var>72.14</var>Statutes, section 475.58, is not required. The issuance of bonds under this subdivision <br/>
<a id="pl.72.15"></a><var>72.15</var>is not subject to Minnesota Statutes, sections 275.60 and 275.61. The bonds are not <br/>
<a id="pl.72.16"></a><var>72.16</var>included in computing any debt limitation applicable to the city and the levy of taxes <br/>
<a id="pl.72.17"></a><var>72.17</var>under Minnesota Statutes, section 475.61, to pay principal and interest on the bonds is <br/>
<a id="pl.72.18"></a><var>72.18</var>not subject to any levy limitation.<br/>
<a id="pl.72.19"></a><var>72.19</var>The aggregate principal amount of the bonds plus the aggregate of the taxes used <br/>
<a id="pl.72.20"></a><var>72.20</var>directly to pay costs of the projects listed in subdivision 2 may not exceed $800,000, plus <br/>
<a id="pl.72.21"></a><var>72.21</var>an amount equal to the costs related to issuance of the bonds and capitalized interest. <br/>
<a id="pl.72.22"></a><var>72.22</var>The taxes authorized in subdivision 1 may be pledged and used for payments of <br/>
<a id="pl.72.23"></a><var>72.23</var>the bonds and bonds issued to refund them, only if the bonds and any refunding bonds <br/>
<a id="pl.72.24"></a><var>72.24</var>are general obligations of the city.<br/>
<a id="pl.72.25"></a><var>72.25</var>    Subd. 4. <b>Termination of tax.</b> The tax imposed under subdivision 1 expires when <br/>
<a id="pl.72.26"></a><var>72.26</var>the Lanesboro City Council determines that sufficient funds have been raised from the <br/>
<a id="pl.72.27"></a><var>72.27</var>taxes to finance the projects authorized under subdivision 2 and to prepay or retire at <br/>
<a id="pl.72.28"></a><var>72.28</var>maturity the principal, interest, and premium due on any bonds issued under subdivision 3. <br/>
<a id="pl.72.29"></a><var>72.29</var>Any funds remaining after completion of the project and retirement or redemption of the <br/>
<a id="pl.72.30"></a><var>72.30</var>bonds may be placed in the general fund of the city. The tax imposed under subdivision 1 <br/>
<a id="pl.72.31"></a><var>72.31</var>may expire at an earlier time if the city so determines by ordinance.<br/>
<a id="pl.72.32"></a><var>72.32</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.72.33"></a><var>72.33</var>the city of Lanesboro and its chief clerical officer comply with Minnesota Statutes, section <br/>
<a id="pl.72.34"></a><var>72.34</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.14.0"></a><a id="pl.73.1"></a><var>73.1</var>    Sec. 14. <b>CITY OF MARSHALL; SALES AND USE TAX.</b><br/>
<a id="pl.73.2"></a><var>73.2</var>    Subdivision 1. <b>Authorization.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.73.3"></a><var>73.3</var>297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city charter, <br/>
<a id="pl.73.4"></a><var>73.4</var>the city of Marshall, if approved by the voters at a general election held within two <br/>
<a id="pl.73.5"></a><var>73.5</var>years of the date of final enactment of this section, may impose the tax authorized under <br/>
<a id="pl.73.6"></a><var>73.6</var>subdivision 2. Two separate ballot questions must be presented to the voters, one for each <br/>
<a id="pl.73.7"></a><var>73.7</var>of the two facility projects named in subdivision 3.<br/>
<a id="pl.73.8"></a><var>73.8</var>    Subd. 2. <b>Sales and use tax authorized.</b> The city of Marshall may impose by <br/>
<a id="pl.73.9"></a><var>73.9</var>ordinance a sales and use tax of up to one-half of one percent for the purposes specified in <br/>
<a id="pl.73.10"></a><var>73.10</var>subdivision 3. The provisions of Minnesota Statutes, section 297A.99, except subdivisions <br/>
<a id="pl.73.11"></a><var>73.11</var>1 and 2, govern the imposition, administration, collection, and enforcement of the tax <br/>
<a id="pl.73.12"></a><var>73.12</var>authorized under this subdivision.<br/>
<a id="pl.73.13"></a><var>73.13</var>    Subd. 3. <b>Use of sales and use tax revenues.</b> The revenues derived from the tax <br/>
<a id="pl.73.14"></a><var>73.14</var>authorized under subdivision 2 must be used by the city of Marshall to pay the costs of <br/>
<a id="pl.73.15"></a><var>73.15</var>collecting and administering the sales and use tax and to pay all or part of the costs of the <br/>
<a id="pl.73.16"></a><var>73.16</var>new and existing facilities of the Minnesota Emergency Response and Industry Training <br/>
<a id="pl.73.17"></a><var>73.17</var>Center and all or part of the costs of the new facilities of the Southwest Minnesota <br/>
<a id="pl.73.18"></a><var>73.18</var>Regional Amateur Sports Center. Authorized expenses include, but are not limited to, <br/>
<a id="pl.73.19"></a><var>73.19</var>acquiring property, predesign, design, and paying construction, furnishing, and equipment <br/>
<a id="pl.73.20"></a><var>73.20</var>costs related to these facilities and paying debt service on bonds or other obligations issued <br/>
<a id="pl.73.21"></a><var>73.21</var>by the city of Marshall under subdivision 4 to finance the capital costs of these facilities.<br/>
<a id="pl.73.22"></a><var>73.22</var>    Subd. 4. <b>Bonds.</b> (a) If the imposition of a sales and use tax is approved by the voters, <br/>
<a id="pl.73.23"></a><var>73.23</var>the city of Marshall may issue bonds under Minnesota Statutes, chapter 475, to finance all <br/>
<a id="pl.73.24"></a><var>73.24</var>or a portion of the costs of the facilities authorized in subdivision 3, and may issue bonds <br/>
<a id="pl.73.25"></a><var>73.25</var>to refund bonds previously issued. The aggregate principal amount of bonds issued under <br/>
<a id="pl.73.26"></a><var>73.26</var>this subdivision may not exceed $17,290,000, plus an amount to be applied to the payment <br/>
<a id="pl.73.27"></a><var>73.27</var>of the costs of issuing the bonds. The bonds may be paid from or secured by any funds <br/>
<a id="pl.73.28"></a><var>73.28</var>available to the city of Marshall, including the tax authorized under subdivision 2. <br/>
<a id="pl.73.29"></a><var>73.29</var>(b) The bonds are not included in computing any debt limitation applicable to the <br/>
<a id="pl.73.30"></a><var>73.30</var>city of Marshall, and any levy of taxes under Minnesota Statutes, section 475.61, to pay <br/>
<a id="pl.73.31"></a><var>73.31</var>principal and interest on the bonds, is not subject to any levy limitation. A separate <br/>
<a id="pl.73.32"></a><var>73.32</var>election to approve the bonds under Minnesota Statutes, section 475.58, is not required. <br/>
<a id="pl.73.33"></a><var>73.33</var>    Subd. 5. <b>Termination of taxes.</b> The tax imposed under subdivision 2 expires at the <br/>
<a id="pl.73.34"></a><var>73.34</var>earlier of (1) 15 years after the tax is first imposed, or (2) when the city council determines <br/>
<a id="pl.74.1"></a><var>74.1</var>that the amount of revenues received from the tax to pay for the capital and administrative <br/>
<a id="pl.74.2"></a><var>74.2</var>costs of the facilities under subdivision 3 first equals or exceeds the amount authorized to <br/>
<a id="pl.74.3"></a><var>74.3</var>be spent for the facilities plus the additional amount needed to pay the costs related to <br/>
<a id="pl.74.4"></a><var>74.4</var>issuance of the bonds under subdivision 4, including interest on the bonds. Any funds <br/>
<a id="pl.74.5"></a><var>74.5</var>remaining after payment of all such costs and retirement or redemption of the bonds shall <br/>
<a id="pl.74.6"></a><var>74.6</var>be placed in the general fund of the city. The tax imposed under subdivision 2 may expire <br/>
<a id="pl.74.7"></a><var>74.7</var>at an earlier time if the city so determines by ordinance.<br/>
<a id="pl.74.8"></a><var>74.8</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.74.9"></a><var>74.9</var>governing body of the city of Marshall with Minnesota Statutes, section 645.021, <br/>
<a id="pl.74.10"></a><var>74.10</var>subdivision 3.<br/>
<br/>
<a id="bill.5.15.0"></a><a id="pl.74.11"></a><var>74.11</var>    Sec. 15. <b>CITY OF MEDFORD; SALES AND USE TAX.</b><br/>
<a id="pl.74.12"></a><var>74.12</var>    Subdivision 1. <b>Sales and use tax authorized.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.74.13"></a><var>74.13</var>sections 297A.99, subdivision 1, and 477A.016, or any other provision of law, ordinance, <br/>
<a id="pl.74.14"></a><var>74.14</var>or city charter, if approved by the voters pursuant to Minnesota Statutes, section 297A.99, <br/>
<a id="pl.74.15"></a><var>74.15</var>at the next general election, the city of Medford may impose by ordinance a sales and use <br/>
<a id="pl.74.16"></a><var>74.16</var>tax of one-half of one percent for the purposes specified in subdivision 2. Except as <br/>
<a id="pl.74.17"></a><var>74.17</var>otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, <br/>
<a id="pl.74.18"></a><var>74.18</var>govern the imposition, administration, collection, and enforcement of the tax authorized <br/>
<a id="pl.74.19"></a><var>74.19</var>under this subdivision.<br/>
<a id="pl.74.20"></a><var>74.20</var>    Subd. 2. <b>Use of revenues.</b> The proceeds of the tax imposed under this section must <br/>
<a id="pl.74.21"></a><var>74.21</var>be used by the city of Medford to pay the costs of collecting and administering the tax <br/>
<a id="pl.74.22"></a><var>74.22</var>and to repay loans received from the Minnesota Public Facilities Authority since 2007 <br/>
<a id="pl.74.23"></a><var>74.23</var>that were used to finance $4,200,000 of improvements to the city's water and wastewater <br/>
<a id="pl.74.24"></a><var>74.24</var>systems.<br/>
<a id="pl.74.25"></a><var>74.25</var>    Subd. 3. <b>Termination of taxes.</b> The tax imposed under this section expires at the <br/>
<a id="pl.74.26"></a><var>74.26</var>earlier of (1) 20 years after the date the taxes are first imposed, or (2) when the Medford <br/>
<a id="pl.74.27"></a><var>74.27</var>City Council determines that the amount of revenues received from the tax equals or <br/>
<a id="pl.74.28"></a><var>74.28</var>exceeds the sum of loans made to the city by the Minnesota Public Facilities Authority <br/>
<a id="pl.74.29"></a><var>74.29</var>as described in subdivision 2, including interest on the loans. Any funds remaining <br/>
<a id="pl.74.30"></a><var>74.30</var>after completion of the repayment of the loans may be placed in the general fund of the <br/>
<a id="pl.74.31"></a><var>74.31</var>city. The tax imposed under subdivision 1 may expire at an earlier time if the city so <br/>
<a id="pl.74.32"></a><var>74.32</var>determines by ordinance.<br/>
<a id="pl.75.1"></a><var>75.1</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.75.2"></a><var>75.2</var>governing body of the city of Medford with Minnesota Statutes, section 645.021, <br/>
<a id="pl.75.3"></a><var>75.3</var>subdivision 3.<br/>
<br/>
<a id="bill.6.0.0"></a>

<a id="bill.6.1.0"></a><a id="pl.75.6"></a><var>75.6</var>    Section 1. Minnesota Statutes 2010, section 126C.01, subdivision 3, is amended to read:<br/>
<a id="pl.75.7"></a><var>75.7</var>    Subd. 3. <b>Referendum market value.</b> "Referendum market value" means the market <br/>
<a id="pl.75.8"></a><var>75.8</var>value of all taxable property, excluding property classified as class 2, noncommercial <br/>
<a id="pl.75.9"></a><var>75.9</var>4c(1), or 4c(4), or 4c(12) under section 
         <statute_ref>273.13</statute_ref>. The portion of class 2a property consisting <br/>
<a id="pl.75.10"></a><var>75.10</var>of the house, garage, and surrounding one acre of land of an agricultural homestead is <br/>
<a id="pl.75.11"></a><var>75.11</var>included in referendum market value. Any class of property, or any portion of a class of <br/>
<a id="pl.75.12"></a><var>75.12</var>property, that is included in the definition of referendum market value and that has a class <br/>
<a id="pl.75.13"></a><var>75.13</var>rate of less than one percent under section 
         <statute_ref>273.13</statute_ref> shall have a referendum market value <br/>
<a id="pl.75.14"></a><var>75.14</var>equal to its net tax capacity multiplied by 100. <br/>
<a id="pl.75.15"></a><var>75.15</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.75.16"></a><var>75.16</var>thereafter.<br/>
<br/>
<a id="bill.6.2.0"></a><a id="pl.75.17"></a><var>75.17</var>    Sec. 2. Minnesota Statutes 2010, section 272.02, subdivision 39, is amended to read:<br/>
<a id="pl.75.18"></a><var>75.18</var>    Subd. 39. <b>Economic development; public purpose.</b> The holding of property by a <br/>
<a id="pl.75.19"></a><var>75.19</var>political subdivision of the state for later resale for economic development purposes shall <br/>
<a id="pl.75.20"></a><var>75.20</var>be considered a public purpose in accordance with subdivision 8 for a period not to exceed <br/>
<a id="pl.75.21"></a><var>75.21</var>eight ten years, except that for property located in a city of 5,000 population or under that <br/>
<a id="pl.75.22"></a><var>75.22</var>is located outside of the metropolitan area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>, the <br/>
<a id="pl.75.23"></a><var>75.23</var>period must not exceed 15 years.<br/>
<a id="pl.75.24"></a><var>75.24</var>The holding of property by a political subdivision of the state for later resale (1) <br/>
<a id="pl.75.25"></a><var>75.25</var>which is purchased or held for housing purposes, or (2) which meets the conditions <br/>
<a id="pl.75.26"></a><var>75.26</var>described in section 
         <statute_ref>469.174, subdivision 10</statute_ref>, shall be considered a public purpose in <br/>
<a id="pl.75.27"></a><var>75.27</var>accordance with subdivision 8.<br/>
<a id="pl.75.28"></a><var>75.28</var>The governing body of the political subdivision which acquires property which is <br/>
<a id="pl.75.29"></a><var>75.29</var>subject to this subdivision shall after the purchase of the property certify to the city or <br/>
<a id="pl.75.30"></a><var>75.30</var>county assessor whether the property is held for economic development purposes or <br/>
<a id="pl.75.31"></a><var>75.31</var>housing purposes, or whether it meets the conditions of section 
         <statute_ref>469.174, subdivision 10</statute_ref>. <br/>
<a id="pl.75.32"></a><var>75.32</var>If the property is acquired for economic development purposes and buildings or other <br/>
<a id="pl.75.33"></a><var>75.33</var>improvements are constructed after acquisition of the property, and if more than one-half <br/>
<a id="pl.75.34"></a><var>75.34</var>of the floor space of the buildings or improvements which is available for lease to or use <br/>
<a id="pl.76.1"></a><var>76.1</var>by a private individual, corporation, or other entity is leased to or otherwise used by <br/>
<a id="pl.76.2"></a><var>76.2</var>a private individual, corporation, or other entity the provisions of this subdivision shall <br/>
<a id="pl.76.3"></a><var>76.3</var>not apply to the property. This subdivision shall not create an exemption from section <br/>
<statute_ref><a id="pl.76.4"></a><var>76.4</var>272.01, subdivision 2
         </statute_ref>; 
         <statute_ref>272.68</statute_ref>; 
         <statute_ref>273.19</statute_ref>; or 
         <statute_ref>469.040, subdivision 3</statute_ref>; or other provision of <br/>
<a id="pl.76.5"></a><var>76.5</var>law providing for the taxation of or for payments in lieu of taxes for publicly held property <br/>
<a id="pl.76.6"></a><var>76.6</var>which is leased, loaned, or otherwise made available and used by a private person.<br/>
<a id="pl.76.7"></a><var>76.7</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in 2011, payable <br/>
<a id="pl.76.8"></a><var>76.8</var>in 2012, and thereafter.<br/>
<br/>
<a id="bill.6.3.0"></a><a id="pl.76.9"></a><var>76.9</var>    Sec. 3. Minnesota Statutes 2010, section 272.02, is amended by adding a subdivision <br/>
<a id="pl.76.10"></a><var>76.10</var>to read:<br/>
<a id="pl.76.11"></a><var>76.11</var>    Subd. 95. <b>Electric generation facility; personal property.</b> (a) Notwithstanding <br/>
<a id="pl.76.12"></a><var>76.12</var>subdivision 9, clause (a), and section 453.54, subdivision 20, attached machinery and other <br/>
<a id="pl.76.13"></a><var>76.13</var>personal property that is part of a multiple reciprocating engine electric generation facility <br/>
<a id="pl.76.14"></a><var>76.14</var>that adds more than 20 and less than 30 megawatts of installed capacity at a site where <br/>
<a id="pl.76.15"></a><var>76.15</var>there is presently more than ten megawatts and fewer than 15 megawatts of installed <br/>
<a id="pl.76.16"></a><var>76.16</var>capacity and that meets the requirements of this subdivision is exempt from taxation and <br/>
<a id="pl.76.17"></a><var>76.17</var>from payments in lieu of taxation. At the time of construction, the facility must:<br/>
<a id="pl.76.18"></a><var>76.18</var>(1) be designed to utilize natural gas as a primary fuel;<br/>
<a id="pl.76.19"></a><var>76.19</var>(2) be owned and operated by a municipal power agency as defined in section <br/>
<a id="pl.76.20"></a><var>76.20</var>453.52, subdivision 8;<br/>
<a id="pl.76.21"></a><var>76.21</var>(3) be located within one mile of an existing natural gas pipeline;<br/>
<a id="pl.76.22"></a><var>76.22</var>(4) be designed to have black start capability and to furnish emergency backup <br/>
<a id="pl.76.23"></a><var>76.23</var>power service to the city in which it is located;<br/>
<a id="pl.76.24"></a><var>76.24</var>(5) satisfy a resource deficiency identified in an approved integrated resource plan <br/>
<a id="pl.76.25"></a><var>76.25</var>filed under section 216B.2422; and <br/>
<a id="pl.76.26"></a><var>76.26</var>(6) have received, by resolution, the approval of the governing bodies of the city <br/>
<a id="pl.76.27"></a><var>76.27</var>and county in which it is located for the exemption of personal property provided by <br/>
<a id="pl.76.28"></a><var>76.28</var>this subdivision.<br/>
<a id="pl.76.29"></a><var>76.29</var>(b) Construction of the facility must be commenced after December 31, 2011, and <br/>
<a id="pl.76.30"></a><var>76.30</var>before January 1, 2015. Property eligible for this exemption does not include (i) electric <br/>
<a id="pl.76.31"></a><var>76.31</var>transmission lines and interconnections or gas pipelines and interconnections appurtenant <br/>
<a id="pl.76.32"></a><var>76.32</var>to the property or the facility; or (ii) property located on the site on the enactment date <br/>
<a id="pl.76.33"></a><var>76.33</var>of this subdivision.<br/>
<a id="pl.77.1"></a><var>77.1</var><b>EFFECTIVE DATE.</b>This section is effective for assessments in 2012, taxes <br/>
<a id="pl.77.2"></a><var>77.2</var>payable in 2013, and thereafter.<br/>
<br/>
<a id="bill.6.4.0"></a><a id="pl.77.3"></a><var>77.3</var>    Sec. 4. Minnesota Statutes 2010, section 273.111, is amended by adding a subdivision <br/>
<a id="pl.77.4"></a><var>77.4</var>to read:<br/>
<a id="pl.77.5"></a><var>77.5</var>    Subd. 17. <b>Appeal.</b> If an assessor denies an application for valuation under this <br/>
<a id="pl.77.6"></a><var>77.6</var>section, the applicant may appeal the decision to the local board of appeal and equalization <br/>
<a id="pl.77.7"></a><var>77.7</var>as provided under section 274.01, subdivision 1, paragraph (h).<br/>
<a id="pl.77.8"></a><var>77.8</var><b>EFFECTIVE DATE.</b>This section is effective for appeals denied after June 30, <br/>
<a id="pl.77.9"></a><var>77.9</var>2011.<br/>
<br/>
<a id="bill.6.5.0"></a><a id="pl.77.10"></a><var>77.10</var>    Sec. 5. Minnesota Statutes 2010, section 273.121, subdivision 1, is amended to read:<br/>
<a id="pl.77.11"></a><var>77.11</var>    Subdivision 1. <b>Notice.</b> Any county assessor or city assessor having the powers of a <br/>
<a id="pl.77.12"></a><var>77.12</var>county assessor, valuing or classifying taxable real property shall in each year notify those <br/>
<a id="pl.77.13"></a><var>77.13</var>persons whose property is to be included on the assessment roll that year if the person's <br/>
<a id="pl.77.14"></a><var>77.14</var>address is known to the assessor, otherwise the occupant of the property. The notice shall <br/>
<a id="pl.77.15"></a><var>77.15</var>be in writing and shall be sent by ordinary mail at least ten days before the meeting of <br/>
<a id="pl.77.16"></a><var>77.16</var>the local board of appeal and equalization under section 
         <statute_ref>274.01</statute_ref> or the review process <br/>
<a id="pl.77.17"></a><var>77.17</var>established under section 
         <statute_ref>274.13, subdivision 1c</statute_ref>. Upon written request by the owner of the <br/>
<a id="pl.77.18"></a><var>77.18</var>property, the assessor may send the notice in electronic form or by electronic mail instead <br/>
<a id="pl.77.19"></a><var>77.19</var>of on paper or by ordinary mail. It shall contain: (1) the market value for the current and <br/>
<a id="pl.77.20"></a><var>77.20</var>prior assessment, (2) the limited market value under section 
<statute_ref>273.11, subdivision 1a</statute_ref>, for <br/>
<a id="pl.77.21"></a><var>77.21</var>the current and prior assessment, (3) the qualifying amount of any improvements under <br/>
<a id="pl.77.22"></a><var>77.22</var>section 
         <statute_ref>273.11, subdivision 16</statute_ref>, for the current assessment, (4) (3) the market value subject <br/>
<a id="pl.77.23"></a><var>77.23</var>to taxation after subtracting the amount of any qualifying improvements for the current <br/>
<a id="pl.77.24"></a><var>77.24</var>assessment, (5) (4) the classification of the property for the current and prior assessment, <br/>
<a id="pl.77.25"></a><var>77.25</var>(6) a note that if the property is homestead and at least 45 years old, improvements made <br/>
<a id="pl.77.26"></a><var>77.26</var>to the property may be eligible for a valuation exclusion under section 
<statute_ref>273.11, subdivision <br/>
<a id="pl.77.27"></a><var>77.27</var>16
</statute_ref>, (7) (5) the assessor's office address, and (8) (6) the dates, places, and times set for the <br/>
<a id="pl.77.28"></a><var>77.28</var>meetings of the local board of appeal and equalization, the review process established <br/>
<a id="pl.77.29"></a><var>77.29</var>under section 
         <statute_ref>274.13, subdivision 1c</statute_ref>, and the county board of appeal and equalization. If <br/>
<a id="pl.77.30"></a><var>77.30</var>the classification of the property has changed between the current and prior assessments, a <br/>
<a id="pl.77.31"></a><var>77.31</var>specific note to that effect shall be prominently listed on the statement. The commissioner <br/>
<a id="pl.77.32"></a><var>77.32</var>of revenue shall specify the form of the notice. The assessor shall attach to the assessment <br/>
<a id="pl.77.33"></a><var>77.33</var>roll a statement that the notices required by this section have been mailed. Any assessor <br/>
<a id="pl.77.34"></a><var>77.34</var>who is not provided sufficient funds from the assessor's governing body to provide such <br/>
<a id="pl.78.1"></a><var>78.1</var>notices, may make application to the commissioner of revenue to finance such notices. <br/>
<a id="pl.78.2"></a><var>78.2</var>The commissioner of revenue shall conduct an investigation and, if satisfied that the <br/>
<a id="pl.78.3"></a><var>78.3</var>assessor does not have the necessary funds, issue a certification to the commissioner <br/>
<a id="pl.78.4"></a><var>78.4</var>of management and budget of the amount necessary to provide such notices. The <br/>
<a id="pl.78.5"></a><var>78.5</var>commissioner of management and budget shall issue a warrant for such amount and shall <br/>
<a id="pl.78.6"></a><var>78.6</var>deduct such amount from any state payment to such county or municipality. The necessary <br/>
<a id="pl.78.7"></a><var>78.7</var>funds to make such payments are hereby appropriated. Failure to receive the notice shall in <br/>
<a id="pl.78.8"></a><var>78.8</var>no way affect the validity of the assessment, the resulting tax, the procedures of any board <br/>
<a id="pl.78.9"></a><var>78.9</var>of review or equalization, or the enforcement of delinquent taxes by statutory means.<br/>
<a id="pl.78.10"></a><var>78.10</var><b>EFFECTIVE DATE.</b>This section is effective for notifications for taxes payable in <br/>
<a id="pl.78.11"></a><var>78.11</var>2013 and thereafter.<br/>
<br/>
<a id="bill.6.6.0"></a><a id="pl.78.12"></a><var>78.12</var>    Sec. 6. Minnesota Statutes 2010, section 273.13, subdivision 25, is amended to read:<br/>
<a id="pl.78.13"></a><var>78.13</var>    Subd. 25. <b>Class 4.</b> (a) Class 4a is residential real estate containing four or more <br/>
<a id="pl.78.14"></a><var>78.14</var>units and used or held for use by the owner or by the tenants or lessees of the owner <br/>
<a id="pl.78.15"></a><var>78.15</var>as a residence for rental periods of 30 days or more, excluding property qualifying for <br/>
<a id="pl.78.16"></a><var>78.16</var>class 4d. Class 4a also includes hospitals licensed under sections 
         <statute_ref>144.50</statute_ref> to 
         <statute_ref>144.56</statute_ref>, other <br/>
<a id="pl.78.17"></a><var>78.17</var>than hospitals exempt under section 
         <statute_ref>272.02</statute_ref>, and contiguous property used for hospital <br/>
<a id="pl.78.18"></a><var>78.18</var>purposes, without regard to whether the property has been platted or subdivided. The <br/>
<a id="pl.78.19"></a><var>78.19</var>market value of class 4a property has a class rate of 1.25 percent.<br/>
<a id="pl.78.20"></a><var>78.20</var>    (b) Class 4b includes:<br/>
<a id="pl.78.21"></a><var>78.21</var>    (1) residential real estate containing less than four units that does not qualify as class <br/>
<a id="pl.78.22"></a><var>78.22</var>4bb, other than seasonal residential recreational property;<br/>
<a id="pl.78.23"></a><var>78.23</var>    (2) manufactured homes not classified under any other provision;<br/>
<a id="pl.78.24"></a><var>78.24</var>    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead <br/>
<a id="pl.78.25"></a><var>78.25</var>farm classified under subdivision 23, paragraph (b) containing two or three units; and<br/>
<a id="pl.78.26"></a><var>78.26</var>    (4) unimproved property that is classified residential as determined under subdivision <br/>
<a id="pl.78.27"></a><var>78.27</var>33.<br/>
<a id="pl.78.28"></a><var>78.28</var>    The market value of class 4b property has a class rate of 1.25 percent.<br/>
<a id="pl.78.29"></a><var>78.29</var>    (c) Class 4bb includes:<br/>
<a id="pl.78.30"></a><var>78.30</var>    (1) nonhomestead residential real estate containing one unit, other than seasonal <br/>
<a id="pl.78.31"></a><var>78.31</var>residential recreational property; and<br/>
<a id="pl.78.32"></a><var>78.32</var>    (2) a single family dwelling, garage, and surrounding one acre of property on a <br/>
<a id="pl.78.33"></a><var>78.33</var>nonhomestead farm classified under subdivision 23, paragraph (b).<br/>
<a id="pl.78.34"></a><var>78.34</var>    Class 4bb property has the same class rates as class 1a property under subdivision 22.<br/>
<a id="pl.79.1"></a><var>79.1</var>    Property that has been classified as seasonal residential recreational property at <br/>
<a id="pl.79.2"></a><var>79.2</var>any time during which it has been owned by the current owner or spouse of the current <br/>
<a id="pl.79.3"></a><var>79.3</var>owner does not qualify for class 4bb.<br/>
<a id="pl.79.4"></a><var>79.4</var>    (d) Class 4c property includes:<br/>
<a id="pl.79.5"></a><var>79.5</var>    (1) except as provided in subdivision 22, paragraph (c), real and personal property <br/>
<a id="pl.79.6"></a><var>79.6</var>devoted to commercial temporary and seasonal residential occupancy for recreation <br/>
<a id="pl.79.7"></a><var>79.7</var>purposes, including real and personal property devoted to temporary and seasonal <br/>
<a id="pl.79.8"></a><var>79.8</var>residential occupancy for recreation purposes and not devoted to commercial purposes for <br/>
<a id="pl.79.9"></a><var>79.9</var>not more than 250 days in the year preceding the year of assessment. For purposes of this <br/>
<a id="pl.79.10"></a><var>79.10</var>clause, property is devoted to a commercial purpose on a specific day if any portion of the <br/>
<a id="pl.79.11"></a><var>79.11</var>property is used for residential occupancy, and a fee is charged for residential occupancy. <br/>
<a id="pl.79.12"></a><var>79.12</var>Class 4c property under this clause must contain three or more rental units. A "rental unit" <br/>
<a id="pl.79.13"></a><var>79.13</var>is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site <br/>
<a id="pl.79.14"></a><var>79.14</var>equipped with water and electrical hookups for recreational vehicles. Class 4c property <br/>
<a id="pl.79.15"></a><var>79.15</var>under this clause must provide recreational activities such as renting ice fishing houses, <br/>
<a id="pl.79.16"></a><var>79.16</var>boats and motors, snowmobiles, downhill or cross-country ski equipment; provide marina <br/>
<a id="pl.79.17"></a><var>79.17</var>services, launch services, or guide services; or sell bait and fishing tackle. A camping pad <br/>
<a id="pl.79.18"></a><var>79.18</var>offered for rent by a property that otherwise qualifies for class 4c under this clause is also <br/>
<a id="pl.79.19"></a><var>79.19</var>class 4c under this clause regardless of the term of the rental agreement, as long as the use <br/>
<a id="pl.79.20"></a><var>79.20</var>of the camping pad does not exceed 250 days. In order for a property to be classified as <br/>
<a id="pl.79.21"></a><var>79.21</var>class 4c, seasonal residential recreational for commercial purposes under this clause, either <br/>
<a id="pl.79.22"></a><var>79.22</var>(i) the business located on the property must provide recreational activities, at least 40 <br/>
<a id="pl.79.23"></a><var>79.23</var>percent of the annual gross lodging receipts related to the property must be from business <br/>
<a id="pl.79.24"></a><var>79.24</var>conducted during 90 consecutive days,  and either (i) (A) at least 60 percent of all paid <br/>
<a id="pl.79.25"></a><var>79.25</var>bookings by lodging guests during the year must be for periods of at least two consecutive <br/>
<a id="pl.79.26"></a><var>79.26</var>nights; or (ii) (B) at least 20 percent of the annual gross receipts must be from charges <br/>
<a id="pl.79.27"></a><var>79.27</var>for rental of fish houses, boats and motors, snowmobiles, downhill or cross-country ski <br/>
<a id="pl.79.28"></a><var>79.28</var>equipment, or charges for marina services, launch services, and guide services, or the sale <br/>
<a id="pl.79.29"></a><var>79.29</var>of bait and fishing tackle providing recreational activities, or (ii) the business must contain <br/>
<a id="pl.79.30"></a><var>79.30</var>20 or fewer rental units, and must be located in a township or a city with a population of <br/>
<a id="pl.79.31"></a><var>79.31</var>2,500 or less located outside the metropolitan area, as defined under section 473.121, <br/>
<a id="pl.79.32"></a><var>79.32</var>subdivision 2, that contains a portion of a state trail administered by the Department of <br/>
<a id="pl.79.33"></a><var>79.33</var>Natural Resources. For purposes of this determination item (i)(A), a paid booking of <br/>
<a id="pl.79.34"></a><var>79.34</var>five or more nights shall be counted as two bookings. Class 4c property classified under <br/>
<a id="pl.79.35"></a><var>79.35</var>this clause also includes commercial use real property used exclusively for recreational <br/>
<a id="pl.79.36"></a><var>79.36</var>purposes in conjunction with other class 4c property classified under this clause and <br/>
<a id="pl.80.1"></a><var>80.1</var>devoted to temporary and seasonal residential occupancy for recreational purposes, up to a <br/>
<a id="pl.80.2"></a><var>80.2</var>total of two acres, provided the property is not devoted to commercial recreational use for <br/>
<a id="pl.80.3"></a><var>80.3</var>more than 250 days in the year preceding the year of assessment and is located within two <br/>
<a id="pl.80.4"></a><var>80.4</var>miles of the class 4c property with which it is used. Owners of real and personal property <br/>
<a id="pl.80.5"></a><var>80.5</var>devoted to temporary and seasonal residential occupancy for recreation purposes and all <br/>
<a id="pl.80.6"></a><var>80.6</var>or a portion of which was devoted to commercial purposes for not more than 250 days in <br/>
<a id="pl.80.7"></a><var>80.7</var>the year preceding the year of assessment desiring classification as class 4c, In order for a <br/>
<a id="pl.80.8"></a><var>80.8</var>property to qualify for classification under this clause, the owner must submit a declaration <br/>
<a id="pl.80.9"></a><var>80.9</var>to the assessor designating the cabins or units occupied for 250 days or less in the year <br/>
<a id="pl.80.10"></a><var>80.10</var>preceding the year of assessment by January 15 of the assessment year. Those cabins or <br/>
<a id="pl.80.11"></a><var>80.11</var>units and a proportionate share of the land on which they are located must be designated <br/>
<a id="pl.80.12"></a><var>80.12</var>class 4c under this clause as otherwise provided. The remainder of the cabins or units and <br/>
<a id="pl.80.13"></a><var>80.13</var>a proportionate share of the land on which they are located will be designated as class 3a. <br/>
<a id="pl.80.14"></a><var>80.14</var>The owner of property desiring designation as class 4c property under this clause must <br/>
<a id="pl.80.15"></a><var>80.15</var>provide guest registers or other records demonstrating that the units for which class 4c <br/>
<a id="pl.80.16"></a><var>80.16</var>designation is sought were not occupied for more than 250 days in the year preceding the <br/>
<a id="pl.80.17"></a><var>80.17</var>assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar, <br/>
<a id="pl.80.18"></a><var>80.18</var>(3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility <br/>
<a id="pl.80.19"></a><var>80.19</var>operated on a commercial basis not directly related to temporary and seasonal residential <br/>
<a id="pl.80.20"></a><var>80.20</var>occupancy for recreation purposes does not qualify for class 4c. For the purposes of this <br/>
<a id="pl.80.21"></a><var>80.21</var>paragraph, "recreational activities" means renting ice fishing houses, boats and motors, <br/>
<a id="pl.80.22"></a><var>80.22</var>snowmobiles, downhill or cross-country ski equipment; providing marina services, launch <br/>
<a id="pl.80.23"></a><var>80.23</var>services, or guide services; or selling bait and fishing tackle;<br/>
<a id="pl.80.24"></a><var>80.24</var>    (2) qualified property used as a golf course if:<br/>
<a id="pl.80.25"></a><var>80.25</var>    (i) it is open to the public on a daily fee basis. It may charge membership fees or <br/>
<a id="pl.80.26"></a><var>80.26</var>dues, but a membership fee may not be required in order to use the property for golfing, <br/>
<a id="pl.80.27"></a><var>80.27</var>and its green fees for golfing must be comparable to green fees typically charged by <br/>
<a id="pl.80.28"></a><var>80.28</var>municipal courses; and<br/>
<a id="pl.80.29"></a><var>80.29</var>    (ii) it meets the requirements of section 
         <statute_ref>273.112, subdivision 3</statute_ref>, paragraph (d).<br/>
<a id="pl.80.30"></a><var>80.30</var>    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction <br/>
<a id="pl.80.31"></a><var>80.31</var>with the golf course is classified as class 3a property;<br/>
<a id="pl.80.32"></a><var>80.32</var>    (3) real property up to a maximum of three acres of land owned and used by a <br/>
<a id="pl.80.33"></a><var>80.33</var>nonprofit community service oriented organization and not used for residential purposes <br/>
<a id="pl.80.34"></a><var>80.34</var>on either a temporary or permanent basis, provided that:<br/>
<a id="pl.80.35"></a><var>80.35</var>    (i) the property is not used for a revenue-producing activity for more than six days <br/>
<a id="pl.80.36"></a><var>80.36</var>in the calendar year preceding the year of assessment; or<br/>
<a id="pl.81.1"></a><var>81.1</var>    (ii) the organization makes annual charitable contributions and donations at least <br/>
<a id="pl.81.2"></a><var>81.2</var>equal to the property's previous year's property taxes and the property is allowed to be <br/>
<a id="pl.81.3"></a><var>81.3</var>used for public and community meetings or events for no charge, as appropriate to the <br/>
<a id="pl.81.4"></a><var>81.4</var>size of the facility.<br/>
<a id="pl.81.5"></a><var>81.5</var>    For purposes of this clause,<br/>
<a id="pl.81.6"></a><var>81.6</var>    (A) "charitable contributions and donations" has the same meaning as lawful <br/>
<a id="pl.81.7"></a><var>81.7</var>gambling purposes under section 
         <statute_ref>349.12, subdivision 25</statute_ref>, excluding those purposes <br/>
<a id="pl.81.8"></a><var>81.8</var>relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;<br/>
<a id="pl.81.9"></a><var>81.9</var>    (B) "property taxes" excludes the state general tax;<br/>
<a id="pl.81.10"></a><var>81.10</var>    (C) a "nonprofit community service oriented organization" means any corporation, <br/>
<a id="pl.81.11"></a><var>81.11</var>society, association, foundation, or institution organized and operated exclusively for <br/>
<a id="pl.81.12"></a><var>81.12</var>charitable, religious, fraternal, civic, or educational purposes, and which is exempt from <br/>
<a id="pl.81.13"></a><var>81.13</var>federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal <br/>
<a id="pl.81.14"></a><var>81.14</var>Revenue Code; and<br/>
<a id="pl.81.15"></a><var>81.15</var>    (D) "revenue-producing activities" shall include but not be limited to property or that <br/>
<a id="pl.81.16"></a><var>81.16</var>portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt <br/>
<a id="pl.81.17"></a><var>81.17</var>liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling <br/>
<a id="pl.81.18"></a><var>81.18</var>alley, a retail store, gambling conducted by organizations licensed under chapter 349, an <br/>
<a id="pl.81.19"></a><var>81.19</var>insurance business, or office or other space leased or rented to a lessee who conducts a <br/>
<a id="pl.81.20"></a><var>81.20</var>for-profit enterprise on the premises.<br/>
<a id="pl.81.21"></a><var>81.21</var>Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use <br/>
<a id="pl.81.22"></a><var>81.22</var>of the property for social events open exclusively to members and their guests for periods <br/>
<a id="pl.81.23"></a><var>81.23</var>of less than 24 hours, when an admission is not charged nor any revenues are received by <br/>
<a id="pl.81.24"></a><var>81.24</var>the organization shall not be considered a revenue-producing activity.<br/>
<a id="pl.81.25"></a><var>81.25</var>    The organization shall maintain records of its charitable contributions and donations <br/>
<a id="pl.81.26"></a><var>81.26</var>and of public meetings and events held on the property and make them available upon <br/>
<a id="pl.81.27"></a><var>81.27</var>request any time to the assessor to ensure eligibility. An organization meeting the <br/>
<a id="pl.81.28"></a><var>81.28</var>requirement under item (ii) must file an application by May 1 with the assessor for <br/>
<a id="pl.81.29"></a><var>81.29</var>eligibility for the current year's assessment. The commissioner shall prescribe a uniform <br/>
<a id="pl.81.30"></a><var>81.30</var>application form and instructions;<br/>
<a id="pl.81.31"></a><var>81.31</var>    (4) postsecondary student housing of not more than one acre of land that is owned by <br/>
<a id="pl.81.32"></a><var>81.32</var>a nonprofit corporation organized under chapter 317A and is used exclusively by a student <br/>
<a id="pl.81.33"></a><var>81.33</var>cooperative, sorority, or fraternity for on-campus housing or housing located within two <br/>
<a id="pl.81.34"></a><var>81.34</var>miles of the border of a college campus;<br/>
<a id="pl.81.35"></a><var>81.35</var>    (5) (i) manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>, <br/>
<a id="pl.81.36"></a><var>81.36</var>excluding manufactured home parks described in section 
         <statute_ref>273.124, subdivision 3a</statute_ref>, and (ii) <br/>
<a id="pl.82.1"></a><var>82.1</var>manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>, that are described in <br/>
<a id="pl.82.2"></a><var>82.2</var>section 
         <statute_ref>273.124, subdivision 3a</statute_ref>;<br/>
<a id="pl.82.3"></a><var>82.3</var>    (6) real property that is actively and exclusively devoted to indoor fitness, health, <br/>
<a id="pl.82.4"></a><var>82.4</var>social, recreational, and related uses, is owned and operated by a not-for-profit corporation, <br/>
<a id="pl.82.5"></a><var>82.5</var>and is located within the metropolitan area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>;<br/>
<a id="pl.82.6"></a><var>82.6</var>    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt <br/>
<a id="pl.82.7"></a><var>82.7</var>under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that:<br/>
<a id="pl.82.8"></a><var>82.8</var>    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan <br/>
<a id="pl.82.9"></a><var>82.9</var>Airports Commission, or group thereof; and<br/>
<a id="pl.82.10"></a><var>82.10</var>    (ii) the land lease, or any ordinance or signed agreement restricting the use of the <br/>
<a id="pl.82.11"></a><var>82.11</var>leased premise, prohibits commercial activity performed at the hangar.<br/>
<a id="pl.82.12"></a><var>82.12</var>    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must <br/>
<a id="pl.82.13"></a><var>82.13</var>be filed by the new owner with the assessor of the county where the property is located <br/>
<a id="pl.82.14"></a><var>82.14</var>within 60 days of the sale;<br/>
<a id="pl.82.15"></a><var>82.15</var>    (8) a privately owned noncommercial aircraft storage hangar not exempt under <br/>
<a id="pl.82.16"></a><var>82.16</var>section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that:<br/>
<a id="pl.82.17"></a><var>82.17</var>    (i) the land abuts a public airport; and<br/>
<a id="pl.82.18"></a><var>82.18</var>    (ii) the owner of the aircraft storage hangar provides the assessor with a signed <br/>
<a id="pl.82.19"></a><var>82.19</var>agreement restricting the use of the premises, prohibiting commercial use or activity <br/>
<a id="pl.82.20"></a><var>82.20</var>performed at the hangar; and<br/>
<a id="pl.82.21"></a><var>82.21</var>    (9) residential real estate, a portion of which is used by the owner for homestead <br/>
<a id="pl.82.22"></a><var>82.22</var>purposes, and that is also a place of lodging, if all of the following criteria are met:<br/>
<a id="pl.82.23"></a><var>82.23</var>    (i) rooms are provided for rent to transient guests that generally stay for periods <br/>
<a id="pl.82.24"></a><var>82.24</var>of 14 or fewer days;<br/>
<a id="pl.82.25"></a><var>82.25</var>    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated <br/>
<a id="pl.82.26"></a><var>82.26</var>in the basic room rate;<br/>
<a id="pl.82.27"></a><var>82.27</var>    (iii) meals are not provided to the general public except for special events on fewer <br/>
<a id="pl.82.28"></a><var>82.28</var>than seven days in the calendar year preceding the year of the assessment; and<br/>
<a id="pl.82.29"></a><var>82.29</var>    (iv) the owner is the operator of the property.<br/>
<a id="pl.82.30"></a><var>82.30</var>The market value subject to the 4c classification under this clause is limited to five rental <br/>
<a id="pl.82.31"></a><var>82.31</var>units. Any rental units on the property in excess of five, must be valued and assessed as <br/>
<a id="pl.82.32"></a><var>82.32</var>class 3a. The portion of the property used for purposes of a homestead by the owner must <br/>
<a id="pl.82.33"></a><var>82.33</var>be classified as class 1a property under subdivision 22;<br/>
<a id="pl.82.34"></a><var>82.34</var>    (10) real property up to a maximum of three acres and operated as a restaurant <br/>
<a id="pl.82.35"></a><var>82.35</var>as defined under section 
         <statute_ref>157.15, subdivision 12</statute_ref>, provided it: (A) is located on a lake <br/>
<a id="pl.82.36"></a><var>82.36</var>as defined under section 
         <statute_ref>103G.005, subdivision 15</statute_ref>, paragraph (a), clause (3); and (B) <br/>
<a id="pl.83.1"></a><var>83.1</var>is either devoted to commercial purposes for not more than 250 consecutive days, or <br/>
<a id="pl.83.2"></a><var>83.2</var>receives at least 60 percent of its annual gross receipts from business conducted during <br/>
<a id="pl.83.3"></a><var>83.3</var>four consecutive months. Gross receipts from the sale of alcoholic beverages must be <br/>
<a id="pl.83.4"></a><var>83.4</var>included in determining the property's qualification under subitem (B). The property's <br/>
<a id="pl.83.5"></a><var>83.5</var>primary business must be as a restaurant and not as a bar. Gross receipts from gift shop <br/>
<a id="pl.83.6"></a><var>83.6</var>sales located on the premises must be excluded. Owners of real property desiring 4c <br/>
<a id="pl.83.7"></a><var>83.7</var>classification under this clause must submit an annual declaration to the assessor by <br/>
<a id="pl.83.8"></a><var>83.8</var>February 1 of the current assessment year, based on the property's relevant information for <br/>
<a id="pl.83.9"></a><var>83.9</var>the preceding assessment year; and<br/>
<a id="pl.83.10"></a><var>83.10</var>(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used <br/>
<a id="pl.83.11"></a><var>83.11</var>as a marina, as defined in section 
         <statute_ref>86A.20, subdivision 5</statute_ref>, which is made accessible to <br/>
<a id="pl.83.12"></a><var>83.12</var>the public and devoted to recreational use for marina services. The marina owner must <br/>
<a id="pl.83.13"></a><var>83.13</var>annually provide evidence to the assessor that it provides services, including lake or river <br/>
<a id="pl.83.14"></a><var>83.14</var>access to the public by means of an access ramp or other facility that is either located on <br/>
<a id="pl.83.15"></a><var>83.15</var>the property of the marina or at a publicly owned site that abuts the property of the marina. <br/>
<a id="pl.83.16"></a><var>83.16</var>No more than 800 feet of lakeshore may be included in this classification. Buildings used <br/>
<a id="pl.83.17"></a><var>83.17</var>in conjunction with a marina for marina services, including but not limited to buildings <br/>
<a id="pl.83.18"></a><var>83.18</var>used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing <br/>
<a id="pl.83.19"></a><var>83.19</var>tackle, are classified as class 3a property; and<br/>
<a id="pl.83.20"></a><var>83.20</var>(12) real and personal property devoted to noncommercial temporary and seasonal <br/>
<a id="pl.83.21"></a><var>83.21</var>residential occupancy for recreation purposes.<br/>
<a id="pl.83.22"></a><var>83.22</var>    Class 4c property has a class rate of 1.5 percent of market value, except that (i) <br/>
<a id="pl.83.23"></a><var>83.23</var>each parcel of noncommercial seasonal residential recreational property not used for <br/>
<a id="pl.83.24"></a><var>83.24</var>commercial purposes under clause (12)  has the same class rates as class 4bb property, (ii) <br/>
<a id="pl.83.25"></a><var>83.25</var>manufactured home parks assessed under clause (5), item (i), have the same class rate <br/>
<a id="pl.83.26"></a><var>83.26</var>as class 4b property, and the market value of manufactured home parks assessed under <br/>
<a id="pl.83.27"></a><var>83.27</var>clause (5), item (ii), has the same class rate as class 4d property if more than 50 percent <br/>
<a id="pl.83.28"></a><var>83.28</var>of the lots in the park are occupied by shareholders in the cooperative corporation or <br/>
<a id="pl.83.29"></a><var>83.29</var>association and a class rate of one percent if 50 percent or less of the lots are so occupied, <br/>
<a id="pl.83.30"></a><var>83.30</var>(iii) commercial-use seasonal residential recreational property and marina recreational <br/>
<a id="pl.83.31"></a><var>83.31</var>land as described in clause (11), has a class rate of one percent for the first $500,000 of <br/>
<a id="pl.83.32"></a><var>83.32</var>market value, and 1.25 percent for the remaining market value, (iv) the market value of <br/>
<a id="pl.83.33"></a><var>83.33</var>property described in clause (4) has a class rate of one percent, (v) the market value of <br/>
<a id="pl.83.34"></a><var>83.34</var>property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi) <br/>
<a id="pl.83.35"></a><var>83.35</var>that portion of the market value of property in clause (9) qualifying for class 4c property <br/>
<a id="pl.83.36"></a><var>83.36</var>has a class rate of 1.25 percent.<br/>
<a id="pl.84.1"></a><var>84.1</var>    (e) Class 4d property is qualifying low-income rental housing certified to the assessor <br/>
<a id="pl.84.2"></a><var>84.2</var>by the Housing Finance Agency under section 
         <statute_ref>273.128, subdivision 3</statute_ref>. If only a portion <br/>
<a id="pl.84.3"></a><var>84.3</var>of the units in the building qualify as low-income rental housing units as certified under <br/>
<a id="pl.84.4"></a><var>84.4</var>section 
         <statute_ref>273.128, subdivision 3</statute_ref>, only the proportion of qualifying units to the total number <br/>
<a id="pl.84.5"></a><var>84.5</var>of units in the building qualify for class 4d. The remaining portion of the building shall be <br/>
<a id="pl.84.6"></a><var>84.6</var>classified by the assessor based upon its use. Class 4d also includes the same proportion of <br/>
<a id="pl.84.7"></a><var>84.7</var>land as the qualifying low-income rental housing units are to the total units in the building. <br/>
<a id="pl.84.8"></a><var>84.8</var>For all properties qualifying as class 4d, the market value determined by the assessor must <br/>
<a id="pl.84.9"></a><var>84.9</var>be based on the normal approach to value using normal unrestricted rents.<br/>
<a id="pl.84.10"></a><var>84.10</var>    Class 4d property has a class rate of 0.75 percent.<br/>
<a id="pl.84.11"></a><var>84.11</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.84.12"></a><var>84.12</var>thereafter.<br/>
<br/>
<a id="bill.6.7.0"></a><a id="pl.84.13"></a><var>84.13</var>    Sec. 7. Minnesota Statutes 2010, section 273.13, subdivision 34, is amended to read:<br/>
<a id="pl.84.14"></a><var>84.14</var>    Subd. 34. <b>Homestead of disabled veteran</b><b> or family caregiver</b><b>.</b> (a) All or a portion <br/>
<a id="pl.84.15"></a><var>84.15</var>of the market value of property owned by a veteran or by the veteran and the and serving <br/>
<a id="pl.84.16"></a><var>84.16</var>as the veteran's spouse qualifying for homestead classification under subdivision 22 or <br/>
<a id="pl.84.17"></a><var>84.17</var>23 under this section is excluded in determining the property's taxable market value if <br/>
<a id="pl.84.18"></a><var>84.18</var>it serves as the homestead of a military veteran, as defined in section 
<statute_ref>197.447</statute_ref>, who has <br/>
<a id="pl.84.19"></a><var>84.19</var>a service-connected disability of 70 percent or more as certified by the United States <br/>
<a id="pl.84.20"></a><var>84.20</var>Department of Veterans Affairs. To qualify for exclusion under this subdivision, the <br/>
<a id="pl.84.21"></a><var>84.21</var>veteran must have been honorably discharged from the United States armed forces, as <br/>
<a id="pl.84.22"></a><var>84.22</var>indicated by United States Government Form DD214 or other official military discharge <br/>
<a id="pl.84.23"></a><var>84.23</var>papers, and must be certified by the United States Veterans Administration as having a <br/>
<a id="pl.84.24"></a><var>84.24</var>service-connected disability.<br/>
<a id="pl.84.25"></a><var>84.25</var>    (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is <br/>
<a id="pl.84.26"></a><var>84.26</var>excluded, except as provided in clause (2); and<br/>
<a id="pl.84.27"></a><var>84.27</var>    (2) for a total (100 percent) and permanent disability, $300,000 of market value is <br/>
<a id="pl.84.28"></a><var>84.28</var>excluded.<br/>
<a id="pl.84.29"></a><var>84.29</var>    (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), <br/>
<a id="pl.84.30"></a><var>84.30</var>clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the <br/>
<a id="pl.84.31"></a><var>84.31</var>spouse holds the legal or beneficial title to the homestead and permanently resides there, <br/>
<a id="pl.84.32"></a><var>84.32</var>the exclusion shall carry over to the benefit of the veteran's spouse for one additional <br/>
<a id="pl.84.33"></a><var>84.33</var>assessment year the current taxes payable year and for five additional taxes payable years <br/>
<a id="pl.84.34"></a><var>84.34</var>or until such time as the spouse remarries, or sells, transfers, or otherwise disposes of the <br/>
<a id="pl.85.1"></a><var>85.1</var>property, whichever comes first. Qualification under this paragraph requires an annual <br/>
<a id="pl.85.2"></a><var>85.2</var>application under paragraph (h).<br/>
<a id="pl.85.3"></a><var>85.3</var>(d) If the spouse of a member of any branch or unit of the United States armed <br/>
<a id="pl.85.4"></a><var>85.4</var>forces who dies due to a service-connected cause while serving honorably in active <br/>
<a id="pl.85.5"></a><var>85.5</var>service, as indicated on United States Government Form DD1300 or DD2064, holds <br/>
<a id="pl.85.6"></a><var>85.6</var>the legal or beneficial title to a homestead and permanently resides there, the spouse is <br/>
<a id="pl.85.7"></a><var>85.7</var>entitled to the benefit described in paragraph (b), clause (2), for five taxes payable years, <br/>
<a id="pl.85.8"></a><var>85.8</var>or until such time as the spouse remarries or sells, transfers, or otherwise disposes of the <br/>
<a id="pl.85.9"></a><var>85.9</var>property, whichever comes first.<br/>
<a id="pl.85.10"></a><var>85.10</var>(e) If a veteran meets the disability criteria of paragraph (a) but does not own <br/>
<a id="pl.85.11"></a><var>85.11</var>property classified as homestead in the state of Minnesota, then the homestead of the <br/>
<a id="pl.85.12"></a><var>85.12</var>veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran <br/>
<a id="pl.85.13"></a><var>85.13</var>would otherwise qualify for under paragraph (b).<br/>
<a id="pl.85.14"></a><var>85.14</var>    (d) (f) In the case of an agricultural homestead, only the portion of the property <br/>
<a id="pl.85.15"></a><var>85.15</var>consisting of the house and garage and immediately surrounding one acre of land qualifies <br/>
<a id="pl.85.16"></a><var>85.16</var>for the valuation exclusion under this subdivision.<br/>
<a id="pl.85.17"></a><var>85.17</var>    (e) (g) A property qualifying for a valuation exclusion under this subdivision is not <br/>
<a id="pl.85.18"></a><var>85.18</var>eligible for the credit under section 
<statute_ref>273.1384, subdivision 1</statute_ref> market value exclusion under <br/>
<a id="pl.85.19"></a><var>85.19</var>subdivision 35, or classification under subdivision 22, paragraph (b).<br/>
<a id="pl.85.20"></a><var>85.20</var>    (f) (h) To qualify for a valuation exclusion under this subdivision a property owner <br/>
<a id="pl.85.21"></a><var>85.21</var>must apply to the assessor by July 1 of each assessment year, except that an annual <br/>
<a id="pl.85.22"></a><var>85.22</var>reapplication is not required once a property has been accepted for a valuation exclusion <br/>
<a id="pl.85.23"></a><var>85.23</var>under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and <br/>
<a id="pl.85.24"></a><var>85.24</var>the property continues to qualify until there is a change in ownership. For an application <br/>
<a id="pl.85.25"></a><var>85.25</var>received after July 1 of any calendar year, the exclusion shall become effective for the <br/>
<a id="pl.85.26"></a><var>85.26</var>following assessment year.<br/>
<a id="pl.85.27"></a><var>85.27</var>(i) A first-time application by a qualifying spouse for the market value exclusion <br/>
<a id="pl.85.28"></a><var>85.28</var>under paragraph (d) may be made any time within two years of the death of the service <br/>
<a id="pl.85.29"></a><var>85.29</var>member.<br/>
<a id="pl.85.30"></a><var>85.30</var>(j) For purposes of this subdivision:<br/>
<a id="pl.85.31"></a><var>85.31</var>(1) "active service" has the meaning given in section 190.05;<br/>
<a id="pl.85.32"></a><var>85.32</var>(2) "own" means that the person's name is present as an owner on the property deed;<br/>
<a id="pl.85.33"></a><var>85.33</var>(3) "primary family caregiver" means a person who is approved by the secretary of <br/>
<a id="pl.85.34"></a><var>85.34</var>the United States Department of Veterans Affairs for assistance as the primary provider <br/>
<a id="pl.85.35"></a><var>85.35</var>of personal care services for an eligible veteran under the Program of Comprehensive <br/>
<a id="pl.86.1"></a><var>86.1</var>Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G; <br/>
<a id="pl.86.2"></a><var>86.2</var>and<br/>
<a id="pl.86.3"></a><var>86.3</var>(4) "veteran" has the meaning given the term in section 197.447.<br/>
<a id="pl.86.4"></a><var>86.4</var>(k) The purpose of this provision of law providing a level of homestead property tax <br/>
<a id="pl.86.5"></a><var>86.5</var>relief for gravely disabled veterans, their primary family caregivers, and their surviving <br/>
<a id="pl.86.6"></a><var>86.6</var>spouses is to help ease the burdens of war for those among our state's citizens who bear <br/>
<a id="pl.86.7"></a><var>86.7</var>those burdens most heavily.<br/>
<a id="pl.86.8"></a><var>86.8</var><b>EFFECTIVE DATE.</b>(a) This section is effective for taxes payable in 2012 and <br/>
<a id="pl.86.9"></a><var>86.9</var>thereafter, and applies to homesteads that initially qualified for the exclusion for taxes <br/>
<a id="pl.86.10"></a><var>86.10</var>payable in 2009 and thereafter.<br/>
<a id="pl.86.11"></a><var>86.11</var>(b) A qualifier under paragraph (c) that would have been eligible for a market value <br/>
<a id="pl.86.12"></a><var>86.12</var>exclusion under this section for taxes payable in 2011, if the change under this section had <br/>
<a id="pl.86.13"></a><var>86.13</var>been effective for that year, shall be eligible to receive the benefit of the exclusion for the <br/>
<a id="pl.86.14"></a><var>86.14</var>remaining number of total taxes payable years provided under paragraph (c).<br/>
<br/>
<a id="bill.6.8.0"></a><a id="pl.86.15"></a><var>86.15</var>    Sec. 8. Minnesota Statutes 2010, section 274.01, subdivision 1, is amended to read:<br/>
<a id="pl.86.16"></a><var>86.16</var>    Subdivision 1. <b>Ordinary board; meetings, deadlines, grievances.</b> (a) The town <br/>
<a id="pl.86.17"></a><var>86.17</var>board of a town, or the council or other governing body of a city, is the board of appeal <br/>
<a id="pl.86.18"></a><var>86.18</var>and equalization except (1) in cities whose charters provide for a board of equalization or <br/>
<a id="pl.86.19"></a><var>86.19</var>(2) in any city or town that has transferred its local board of review power and duties to <br/>
<a id="pl.86.20"></a><var>86.20</var>the county board as provided in subdivision 3. The county assessor shall fix a day and <br/>
<a id="pl.86.21"></a><var>86.21</var>time when the board or the board of equalization shall meet in the assessment districts <br/>
<a id="pl.86.22"></a><var>86.22</var>of the county. Notwithstanding any law or city charter to the contrary, a city board of <br/>
<a id="pl.86.23"></a><var>86.23</var>equalization shall be referred to as a board of appeal and equalization. On or before <br/>
<a id="pl.86.24"></a><var>86.24</var>February 15 of each year the assessor shall give written notice of the time to the city or <br/>
<a id="pl.86.25"></a><var>86.25</var>town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings <br/>
<a id="pl.86.26"></a><var>86.26</var>must be held between April 1 and May 31 each year, provided that the board may review <br/>
<a id="pl.86.27"></a><var>86.27</var>appeals of denials of green acres treatment as provided in paragraph (h) at any time. <br/>
<a id="pl.86.28"></a><var>86.28</var>The clerk shall give published and posted notice of the meeting at least ten days before <br/>
<a id="pl.86.29"></a><var>86.29</var>the date of the meeting.<br/>
<a id="pl.86.30"></a><var>86.30</var>    The board shall meet at the office of the clerk to review the assessment and <br/>
<a id="pl.86.31"></a><var>86.31</var>classification of property in the town or city. No changes in valuation or classification <br/>
<a id="pl.86.32"></a><var>86.32</var>which are intended to correct errors in judgment by the county assessor may be made by <br/>
<a id="pl.86.33"></a><var>86.33</var>the county assessor after the board has adjourned in those cities or towns that hold a <br/>
<a id="pl.86.34"></a><var>86.34</var>local board of review; however, corrections of errors that are merely clerical in nature or <br/>
<a id="pl.86.35"></a><var>86.35</var>changes that extend homestead treatment to property are permitted after adjournment until <br/>
<a id="pl.87.1"></a><var>87.1</var>the tax extension date for that assessment year. The changes must be fully documented and <br/>
<a id="pl.87.2"></a><var>87.2</var>maintained in the assessor's office and must be available for review by any person. A copy <br/>
<a id="pl.87.3"></a><var>87.3</var>of the changes made during this period in those cities or towns that hold a local board of <br/>
<a id="pl.87.4"></a><var>87.4</var>review must be sent to the county board no later than December 31 of the assessment year.<br/>
<a id="pl.87.5"></a><var>87.5</var>    (b) The board shall determine whether the taxable property in the town or city has <br/>
<a id="pl.87.6"></a><var>87.6</var>been properly placed on the list and properly valued by the assessor. If real or personal <br/>
<a id="pl.87.7"></a><var>87.7</var>property has been omitted, the board shall place it on the list with its market value, and <br/>
<a id="pl.87.8"></a><var>87.8</var>correct the assessment so that each tract or lot of real property, and each article, parcel, <br/>
<a id="pl.87.9"></a><var>87.9</var>or class of personal property, is entered on the assessment list at its market value. No <br/>
<a id="pl.87.10"></a><var>87.10</var>assessment of the property of any person may be raised unless the person has been <br/>
<a id="pl.87.11"></a><var>87.11</var>duly notified of the intent of the board to do so. On application of any person feeling <br/>
<a id="pl.87.12"></a><var>87.12</var>aggrieved, the board shall review the assessment or classification, or both, and correct <br/>
<a id="pl.87.13"></a><var>87.13</var>it as appears just. The board may not make an individual market value adjustment or <br/>
<a id="pl.87.14"></a><var>87.14</var>classification change that would benefit the property if the owner or other person having <br/>
<a id="pl.87.15"></a><var>87.15</var>control over the property has refused the assessor access to inspect the property and the <br/>
<a id="pl.87.16"></a><var>87.16</var>interior of any buildings or structures as provided in section 
         <statute_ref>273.20</statute_ref>. A board member <br/>
<a id="pl.87.17"></a><var>87.17</var>shall not participate in any actions of the board which result in market value adjustments <br/>
<a id="pl.87.18"></a><var>87.18</var>or classification changes to property owned by the board member, the spouse, parent, <br/>
<a id="pl.87.19"></a><var>87.19</var>stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, <br/>
<a id="pl.87.20"></a><var>87.20</var>or niece of a board member, or property in which a board member has a financial interest. <br/>
<a id="pl.87.21"></a><var>87.21</var>The relationship may be by blood or marriage.<br/>
<a id="pl.87.22"></a><var>87.22</var>    (c) A local board may reduce assessments upon petition of the taxpayer but the total <br/>
<a id="pl.87.23"></a><var>87.23</var>reductions must not reduce the aggregate assessment made by the county assessor by more <br/>
<a id="pl.87.24"></a><var>87.24</var>than one percent. If the total reductions would lower the aggregate assessments made by <br/>
<a id="pl.87.25"></a><var>87.25</var>the county assessor by more than one percent, none of the adjustments may be made. The <br/>
<a id="pl.87.26"></a><var>87.26</var>assessor shall correct any clerical errors or double assessments discovered by the board <br/>
<a id="pl.87.27"></a><var>87.27</var>without regard to the one percent limitation.<br/>
<a id="pl.87.28"></a><var>87.28</var>    (d) A local board does not have authority to grant an exemption or to order property <br/>
<a id="pl.87.29"></a><var>87.29</var>removed from the tax rolls.<br/>
<a id="pl.87.30"></a><var>87.30</var>    (e) A majority of the members may act at the meeting, and adjourn from day to day <br/>
<a id="pl.87.31"></a><var>87.31</var>until they finish hearing the cases presented. The assessor shall attend, with the assessment <br/>
<a id="pl.87.32"></a><var>87.32</var>books and papers, and take part in the proceedings, but must not vote. The county assessor, <br/>
<a id="pl.87.33"></a><var>87.33</var>or an assistant delegated by the county assessor shall attend the meetings. The board shall <br/>
<a id="pl.87.34"></a><var>87.34</var>list separately, on a form appended to the assessment book, all omitted property added <br/>
<a id="pl.87.35"></a><var>87.35</var>to the list by the board and all items of property increased or decreased, with the market <br/>
<a id="pl.88.1"></a><var>88.1</var>value of each item of property, added or changed by the board, placed opposite the item. <br/>
<a id="pl.88.2"></a><var>88.2</var>The county assessor shall enter all changes made by the board in the assessment book.<br/>
<a id="pl.88.3"></a><var>88.3</var>    (f) Except as provided in subdivision 3, if a person fails to appear in person, by <br/>
<a id="pl.88.4"></a><var>88.4</var>counsel, or by written communication before the board after being duly notified of the <br/>
<a id="pl.88.5"></a><var>88.5</var>board's intent to raise the assessment of the property, or if a person feeling aggrieved by an <br/>
<a id="pl.88.6"></a><var>88.6</var>assessment or classification fails to apply for a review of the assessment or classification, <br/>
<a id="pl.88.7"></a><var>88.7</var>the person may not appear before the county board of appeal and equalization for a review <br/>
<a id="pl.88.8"></a><var>88.8</var>of the assessment or classification. This paragraph does not apply if an assessment was <br/>
<a id="pl.88.9"></a><var>88.9</var>made after the local board meeting, as provided in section 
         <statute_ref>273.01</statute_ref>, or if the person can <br/>
<a id="pl.88.10"></a><var>88.10</var>establish not having received notice of market value at least five days before the local <br/>
<a id="pl.88.11"></a><var>88.11</var>board meeting.<br/>
<a id="pl.88.12"></a><var>88.12</var>    (g) The local board must complete its work and adjourn within 20 days from the <br/>
<a id="pl.88.13"></a><var>88.13</var>time of convening stated in the notice of the clerk, unless a longer period is approved by <br/>
<a id="pl.88.14"></a><var>88.14</var>the commissioner of revenue. No action taken after that date is valid. All complaints <br/>
<a id="pl.88.15"></a><var>88.15</var>about an assessment or classification made after the meeting of the board must be heard <br/>
<a id="pl.88.16"></a><var>88.16</var>and determined by the county board of equalization. A nonresident may, at any time, <br/>
<a id="pl.88.17"></a><var>88.17</var>before the meeting of the board file written objections to an assessment or classification <br/>
<a id="pl.88.18"></a><var>88.18</var>with the county assessor. The objections must be presented to the board at its meeting by <br/>
<a id="pl.88.19"></a><var>88.19</var>the county assessor for its consideration.<br/>
<a id="pl.88.20"></a><var>88.20</var>(h) The local board may, but is not required to, review appeals from property owners <br/>
<a id="pl.88.21"></a><var>88.21</var>of denials by assessors of applications for valuation under section 273.111. If it intends <br/>
<a id="pl.88.22"></a><var>88.22</var>to exercise the authority provided in this paragraph, the board must pass a resolution <br/>
<a id="pl.88.23"></a><var>88.23</var>stating that it will do so, and must then review all such appeals until it passes a subsequent <br/>
<a id="pl.88.24"></a><var>88.24</var>resolution stating that it will not review such appeals.<br/>
<a id="pl.88.25"></a><var>88.25</var><b>EFFECTIVE DATE.</b>This section is effective for appeals denied after June 30, <br/>
<a id="pl.88.26"></a><var>88.26</var>2011.<br/>
<br/>
<a id="bill.6.9.0"></a><a id="pl.88.27"></a><var>88.27</var>    Sec. 9. Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read:<br/>
<a id="pl.88.28"></a><var>88.28</var>    Subdivision 1. <b>Levy amount.</b> The state general levy is levied against <br/>
<a id="pl.88.29"></a><var>88.29</var>commercial-industrial property and seasonal residential recreational property, as defined <br/>
<a id="pl.88.30"></a><var>88.30</var>in this section. The state general levy base amount for commercial-industrial property <br/>
<a id="pl.88.31"></a><var>88.31</var>is $592,000,000 $739,000,000 for taxes payable in 2002 2012. The state general <br/>
<a id="pl.88.32"></a><var>88.32</var>levy base amount for seasonal recreational property is $40,600,000 for taxes payable <br/>
<a id="pl.88.33"></a><var>88.33</var>in 2012. For taxes payable in subsequent years 2013, the each levy base amount <br/>
<a id="pl.88.34"></a><var>88.34</var>is increased each year by multiplying the levy base amount for the prior year taxes <br/>
<a id="pl.88.35"></a><var>88.35</var>payable in 2012 by the sum of one plus the rate of increase, if any, in the implicit <br/>
<a id="pl.89.1"></a><var>89.1</var>price deflator for government consumption expenditures and gross investment for <br/>
<a id="pl.89.2"></a><var>89.2</var>state and local governments prepared by the Bureau of Economic Analysts of the <br/>
<a id="pl.89.3"></a><var>89.3</var>United States Department of Commerce for the 12-month period ending March 31 <br/>
<a id="pl.89.4"></a><var>89.4</var>of the year prior to the year the taxes are payable, 2012. For taxes payable in 2014 <br/>
<a id="pl.89.5"></a><var>89.5</var>and 2015, the state general levy is $743,000,000 for commercial-industrial property <br/>
<a id="pl.89.6"></a><var>89.6</var>and $40,500,000 for seasonal residential recreational property. For taxes payable in <br/>
<a id="pl.89.7"></a><var>89.7</var>2016, the state general levy is $668,700,000 for commercial-industrial property and <br/>
<a id="pl.89.8"></a><var>89.8</var>$36,450,000 for seasonal residential recreational property. For taxes payable in 2017, the <br/>
<a id="pl.89.9"></a><var>89.9</var>state general levy is $594,400,000 for commercial-industrial property and $32,400,000 <br/>
<a id="pl.89.10"></a><var>89.10</var>for seasonal residential recreational property. For taxes payable in 2018, the state <br/>
<a id="pl.89.11"></a><var>89.11</var>general levy is $520,100,000 for commercial-industrial property and $28,350,000 <br/>
<a id="pl.89.12"></a><var>89.12</var>for seasonal residential recreational property. For taxes payable in 2019, the state <br/>
<a id="pl.89.13"></a><var>89.13</var>general levy is $445,800,000 for commercial-industrial property and $24,300,000 <br/>
<a id="pl.89.14"></a><var>89.14</var>for seasonal residential recreational property. For taxes payable in 2020, the state <br/>
<a id="pl.89.15"></a><var>89.15</var>general levy is $371,500,000 for commercial-industrial property and $20,250,000 <br/>
<a id="pl.89.16"></a><var>89.16</var>for seasonal residential recreational property. For taxes payable in 2021, the state <br/>
<a id="pl.89.17"></a><var>89.17</var>general levy is $297,200,000 for commercial-industrial property and $16,200,000 for <br/>
<a id="pl.89.18"></a><var>89.18</var>seasonal residential recreational property. For taxes payable in 2022, the state general <br/>
<a id="pl.89.19"></a><var>89.19</var>levy is $222,900,000 for commercial-industrial property and $12,150,000 for seasonal <br/>
<a id="pl.89.20"></a><var>89.20</var>residential recreational property. For taxes payable in 2023, the state general levy is <br/>
<a id="pl.89.21"></a><var>89.21</var>$148,600,000 for commercial-industrial property and $8,100,000 for seasonal residential <br/>
<a id="pl.89.22"></a><var>89.22</var>recreational property. For taxes payable in 2024, the state general levy is $74,300,000 <br/>
<a id="pl.89.23"></a><var>89.23</var>for commercial-industrial property and $4,050,000 for seasonal residential recreational <br/>
<a id="pl.89.24"></a><var>89.24</var>property. The tax under this section is not treated as a local tax rate under section 
         <statute_ref>469.177</statute_ref> <br/>
<a id="pl.89.25"></a><var>89.25</var>and is not the levy of a governmental unit under chapters 276A and 473F.<br/>
<a id="pl.89.26"></a><var>89.26</var>The commissioner shall increase or decrease the preliminary or final rate for a year <br/>
<a id="pl.89.27"></a><var>89.27</var>as necessary to account for errors and tax base changes that affected a preliminary or final <br/>
<a id="pl.89.28"></a><var>89.28</var>rate for either of the two preceding years. Adjustments are allowed to the extent that the <br/>
<a id="pl.89.29"></a><var>89.29</var>necessary information is available to the commissioner at the time the rates for a year must <br/>
<a id="pl.89.30"></a><var>89.30</var>be certified, and for the following reasons:<br/>
<a id="pl.89.31"></a><var>89.31</var>(1) an erroneous report of taxable value by a local official;<br/>
<a id="pl.89.32"></a><var>89.32</var>(2) an erroneous calculation by the commissioner; and<br/>
<a id="pl.89.33"></a><var>89.33</var>(3) an increase or decrease in taxable value for commercial-industrial or seasonal <br/>
<a id="pl.89.34"></a><var>89.34</var>residential recreational property reported on the abstracts of tax lists submitted under <br/>
<a id="pl.89.35"></a><var>89.35</var>section 
         <statute_ref>275.29</statute_ref> that was not reported on the abstracts of assessment submitted under <br/>
<a id="pl.89.36"></a><var>89.36</var>section 
         <statute_ref>270C.89</statute_ref> for the same year.<br/>
<a id="pl.90.1"></a><var>90.1</var>The commissioner may, but need not, make adjustments if the total difference in the tax <br/>
<a id="pl.90.2"></a><var>90.2</var>levied for the year would be less than $100,000.<br/>
<a id="pl.90.3"></a><var>90.3</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.90.4"></a><var>90.4</var>thereafter.<br/>
<br/>
<a id="bill.6.10.0"></a><a id="pl.90.5"></a><var>90.5</var>    Sec. 10. Minnesota Statutes 2010, section 275.025, subdivision 3, is amended to read:<br/>
<a id="pl.90.6"></a><var>90.6</var>    Subd. 3. <b>Seasonal residential recreational tax capacity.</b> For the purposes of this <br/>
<a id="pl.90.7"></a><var>90.7</var>section, "seasonal residential recreational tax capacity" means the tax capacity of tier III <br/>
<a id="pl.90.8"></a><var>90.8</var>of class 1c under section 
         <statute_ref>273.13, subdivision 22</statute_ref>, and all class 4c(1) and, 4c(3)(ii), and <br/>
<a id="pl.90.9"></a><var>90.9</var>4c(12) property under section 
         <statute_ref>273.13, subdivision 25</statute_ref>, except that the first $76,000 of <br/>
<a id="pl.90.10"></a><var>90.10</var>market value of each noncommercial class 4c(1) 4c(12) property has a tax capacity for this <br/>
<a id="pl.90.11"></a><var>90.11</var>purpose equal to 40 percent of its tax capacity under section 
         <statute_ref>273.13</statute_ref>.<br/>
<a id="pl.90.12"></a><var>90.12</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.90.13"></a><var>90.13</var>thereafter.<br/>
<br/>
<a id="bill.6.11.0"></a><a id="pl.90.14"></a><var>90.14</var>    Sec. 11. Minnesota Statutes 2010, section 275.025, subdivision 4, is amended to read:<br/>
<a id="pl.90.15"></a><var>90.15</var>    Subd. 4. <b>Apportionment and levy of state general tax.</b> Ninety-five percent of The <br/>
<a id="pl.90.16"></a><var>90.16</var>state general tax must be levied by applying a uniform rate to all commercial-industrial tax <br/>
<a id="pl.90.17"></a><var>90.17</var>capacity and five percent of the state general tax must be levied by applying a uniform <br/>
<a id="pl.90.18"></a><var>90.18</var>rate to all seasonal residential recreational tax capacity. On or before October 1 each <br/>
<a id="pl.90.19"></a><var>90.19</var>year, the commissioner of revenue shall certify the preliminary state general levy rates to <br/>
<a id="pl.90.20"></a><var>90.20</var>each county auditor that must be used to prepare the notices of proposed property taxes <br/>
<a id="pl.90.21"></a><var>90.21</var>for taxes payable in the following year. By January 1 of each year, the commissioner <br/>
<a id="pl.90.22"></a><var>90.22</var>shall certify the final state general levy rate rates to each county auditor that shall be <br/>
<a id="pl.90.23"></a><var>90.23</var>used in spreading taxes.<br/>
<a id="pl.90.24"></a><var>90.24</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.90.25"></a><var>90.25</var>thereafter.<br/>
<br/>
<a id="bill.6.12.0"></a><a id="pl.90.26"></a><var>90.26</var>    Sec. 12. Minnesota Statutes 2010, section 275.70, subdivision 5, is amended to read:<br/>
<a id="pl.90.27"></a><var>90.27</var>    Subd. 5. <b>Special levies.</b> "Special levies" means those portions of ad valorem taxes <br/>
<a id="pl.90.28"></a><var>90.28</var>levied by a local governmental unit for the following purposes or in the following manner:<br/>
<a id="pl.90.29"></a><var>90.29</var>    (1) to pay the costs of the principal and interest on bonded indebtedness or to <br/>
<a id="pl.90.30"></a><var>90.30</var>reimburse for the amount of liquor store revenues used to pay the principal and interest <br/>
<a id="pl.90.31"></a><var>90.31</var>due on municipal liquor store bonds in the year preceding the year for which the levy <br/>
<a id="pl.90.32"></a><var>90.32</var>limit is calculated;<br/>
<a id="pl.91.1"></a><var>91.1</var>    (2) to pay the costs of principal and interest on certificates of indebtedness issued for <br/>
<a id="pl.91.2"></a><var>91.2</var>any corporate purpose except for the following:<br/>
<a id="pl.91.3"></a><var>91.3</var>    (i) tax anticipation or aid anticipation certificates of indebtedness;<br/>
<a id="pl.91.4"></a><var>91.4</var>    (ii) certificates of indebtedness issued under sections 
         <statute_ref>298.28</statute_ref> and 
         <statute_ref>298.282</statute_ref>;<br/>
<a id="pl.91.5"></a><var>91.5</var>    (iii) certificates of indebtedness used to fund current expenses or to pay the costs of <br/>
<a id="pl.91.6"></a><var>91.6</var>extraordinary expenditures that result from a public emergency; or<br/>
<a id="pl.91.7"></a><var>91.7</var>    (iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an <br/>
<a id="pl.91.8"></a><var>91.8</var>insufficiency in other revenue sources, provided that nothing in this subdivision limits the <br/>
<a id="pl.91.9"></a><var>91.9</var>special levy authorized under section 
         <statute_ref>475.755</statute_ref>;<br/>
<a id="pl.91.10"></a><var>91.10</var>    (3) to provide for the bonded indebtedness portion of payments made to another <br/>
<a id="pl.91.11"></a><var>91.11</var>political subdivision of the state of Minnesota;<br/>
<a id="pl.91.12"></a><var>91.12</var>    (4) to fund payments made to the Minnesota State Armory Building Commission <br/>
<a id="pl.91.13"></a><var>91.13</var>under section 
         <statute_ref>193.145, subdivision 2</statute_ref>, to retire the principal and interest on armory <br/>
<a id="pl.91.14"></a><var>91.14</var>construction bonds;<br/>
<a id="pl.91.15"></a><var>91.15</var>    (5) property taxes approved by voters which are levied against the referendum <br/>
<a id="pl.91.16"></a><var>91.16</var>market value as provided under section 
         <statute_ref>275.61</statute_ref>;<br/>
<a id="pl.91.17"></a><var>91.17</var>    (6) to fund matching requirements needed to qualify for federal or state grants or <br/>
<a id="pl.91.18"></a><var>91.18</var>programs to the extent that either (i) the matching requirement exceeds the matching <br/>
<a id="pl.91.19"></a><var>91.19</var>requirement in calendar year 2001, or (ii) it is a new matching requirement that did not <br/>
<a id="pl.91.20"></a><var>91.20</var>exist prior to 2002;<br/>
<a id="pl.91.21"></a><var>91.21</var>    (7) to pay the expenses reasonably and necessarily incurred in preparing for or <br/>
<a id="pl.91.22"></a><var>91.22</var>repairing the effects of natural disaster including the occurrence or threat of widespread <br/>
<a id="pl.91.23"></a><var>91.23</var>or severe damage, injury, or loss of life or property resulting from natural causes, in <br/>
<a id="pl.91.24"></a><var>91.24</var>accordance with standards formulated by the Emergency Services Division of the state <br/>
<a id="pl.91.25"></a><var>91.25</var>Department of Public Safety, as allowed by the commissioner of revenue under section <br/>
<statute_ref><a id="pl.91.26"></a><var>91.26</var>275.74, subdivision 2
         </statute_ref>;<br/>
<a id="pl.91.27"></a><var>91.27</var>    (8) pay amounts required to correct an error in the levy certified to the county <br/>
<a id="pl.91.28"></a><var>91.28</var>auditor by a city or county in a levy year, but only to the extent that when added to the <br/>
<a id="pl.91.29"></a><var>91.29</var>preceding year's levy it is not in excess of an applicable statutory, special law or charter <br/>
<a id="pl.91.30"></a><var>91.30</var>limitation, or the limitation imposed on the governmental subdivision by sections 
         <statute_ref>275.70 <br/>
</statute_ref><a id="pl.91.31"></a><var>91.31</var>to 
         <statute_ref>275.74</statute_ref> in the preceding levy year;<br/>
<a id="pl.91.32"></a><var>91.32</var>    (9) to pay an abatement under section 
         <statute_ref>469.1815</statute_ref>;<br/>
<a id="pl.91.33"></a><var>91.33</var>    (10) to pay any costs attributable to increases in the employer contribution rates <br/>
<a id="pl.91.34"></a><var>91.34</var>under chapter 353, or locally administered pension plans, that are effective after June <br/>
<a id="pl.91.35"></a><var>91.35</var>30, 2001;<br/>
<a id="pl.92.1"></a><var>92.1</var>    (11) to pay the operating or maintenance costs of a county jail as authorized in <br/>
<a id="pl.92.2"></a><var>92.2</var>section 
         <statute_ref>641.01</statute_ref> or 
         <statute_ref>641.262</statute_ref>, or of a correctional facility as defined in section 
         <statute_ref>241.021, <br/>
<a id="pl.92.3"></a><var>92.3</var>subdivision 1
         </statute_ref>, paragraph (f), to the extent that the county can demonstrate to the <br/>
<a id="pl.92.4"></a><var>92.4</var>commissioner of revenue that the amount has been included in the county budget as <br/>
<a id="pl.92.5"></a><var>92.5</var>a direct result of a rule, minimum requirement, minimum standard, or directive of the <br/>
<a id="pl.92.6"></a><var>92.6</var>Department of Corrections, or to pay the operating or maintenance costs of a regional jail <br/>
<a id="pl.92.7"></a><var>92.7</var>as authorized in section 
         <statute_ref>641.262</statute_ref>. For purposes of this clause, a district court order is <br/>
<a id="pl.92.8"></a><var>92.8</var>not a rule, minimum requirement, minimum standard, or directive of the Department of <br/>
<a id="pl.92.9"></a><var>92.9</var>Corrections. If the county utilizes this special levy, except to pay operating or maintenance <br/>
<a id="pl.92.10"></a><var>92.10</var>costs of a new regional jail facility under sections 
         <statute_ref>641.262</statute_ref> to 
         <statute_ref>641.264</statute_ref> which will not <br/>
<a id="pl.92.11"></a><var>92.11</var>replace an existing jail facility, any amount levied by the county in the previous levy year <br/>
<a id="pl.92.12"></a><var>92.12</var>for the purposes specified under this clause and included in the county's previous year's <br/>
<a id="pl.92.13"></a><var>92.13</var>levy limitation computed under section 
         <statute_ref>275.71</statute_ref>, shall be deducted from the levy limit <br/>
<a id="pl.92.14"></a><var>92.14</var>base under section 
         <statute_ref>275.71, subdivision 2</statute_ref>, when determining the county's current year <br/>
<a id="pl.92.15"></a><var>92.15</var>levy limitation. The county shall provide the necessary information to the commissioner <br/>
<a id="pl.92.16"></a><var>92.16</var>of revenue for making this determination;<br/>
<a id="pl.92.17"></a><var>92.17</var>    (12) to pay for operation of a lake improvement district, as authorized under section <br/>
<statute_ref><a id="pl.92.18"></a><var>92.18</var>103B.555
         </statute_ref>. If the county utilizes this special levy, any amount levied by the county in the <br/>
<a id="pl.92.19"></a><var>92.19</var>previous levy year for the purposes specified under this clause and included in the county's <br/>
<a id="pl.92.20"></a><var>92.20</var>previous year's levy limitation computed under section 
         <statute_ref>275.71</statute_ref> shall be deducted from <br/>
<a id="pl.92.21"></a><var>92.21</var>the levy limit base under section 
         <statute_ref>275.71, subdivision 2</statute_ref>, when determining the county's <br/>
<a id="pl.92.22"></a><var>92.22</var>current year levy limitation. The county shall provide the necessary information to the <br/>
<a id="pl.92.23"></a><var>92.23</var>commissioner of revenue for making this determination;<br/>
<a id="pl.92.24"></a><var>92.24</var>    (13) to repay a state or federal loan used to fund the direct or indirect required <br/>
<a id="pl.92.25"></a><var>92.25</var>spending by the local government due to a state or federal transportation project or other <br/>
<a id="pl.92.26"></a><var>92.26</var>state or federal capital project. This authority may only be used if the project is not a <br/>
<a id="pl.92.27"></a><var>92.27</var>local government initiative;<br/>
<a id="pl.92.28"></a><var>92.28</var>    (14) to pay for court administration costs as required under section 
         <statute_ref>273.1398, <br/>
<a id="pl.92.29"></a><var>92.29</var>subdivision 4b
         </statute_ref>, less the (i) county's share of transferred fines and fees collected by the <br/>
<a id="pl.92.30"></a><var>92.30</var>district courts in the county for calendar year 2001 and (ii) the aid amount certified to be <br/>
<a id="pl.92.31"></a><var>92.31</var>paid to the county in 2004 under section 
         <statute_ref>273.1398, subdivision 4c</statute_ref>; however, for taxes <br/>
<a id="pl.92.32"></a><var>92.32</var>levied to pay for these costs in the year in which the court financing is transferred to the <br/>
<a id="pl.92.33"></a><var>92.33</var>state, the amount under this clause is limited to the amount of aid the county is certified to <br/>
<a id="pl.92.34"></a><var>92.34</var>receive under section 
         <statute_ref>273.1398, subdivision 4a</statute_ref>;<br/>
<a id="pl.92.35"></a><var>92.35</var>    (15) to fund a police or firefighters relief association as required under section 
         <statute_ref>69.77 <br/>
</statute_ref><a id="pl.92.36"></a><var>92.36</var>to the extent that the required amount exceeds the amount levied for this purpose in 2001;<br/>
<a id="pl.93.1"></a><var>93.1</var>    (16) for purposes of a storm sewer improvement district under section 
         <statute_ref>444.20</statute_ref>;<br/>
<a id="pl.93.2"></a><var>93.2</var>    (17) to pay for the maintenance and support of a city or county society for the <br/>
<a id="pl.93.3"></a><var>93.3</var>prevention of cruelty to animals under section 
         <statute_ref>343.11</statute_ref>, but not to exceed in any year <br/>
<a id="pl.93.4"></a><var>93.4</var>$4,800 or the sum of $1 per capita based on the county's or city's population as of the most <br/>
<a id="pl.93.5"></a><var>93.5</var>recent federal census, whichever is greater. If the city or county uses this special levy, any <br/>
<a id="pl.93.6"></a><var>93.6</var>amount levied by the city or county in the previous levy year for the purposes specified <br/>
<a id="pl.93.7"></a><var>93.7</var>in this clause and included in the city's or county's previous year's levy limit computed <br/>
<a id="pl.93.8"></a><var>93.8</var>under section 
         <statute_ref>275.71</statute_ref>, must be deducted from the levy limit base under section 
         <statute_ref>275.71, <br/>
<a id="pl.93.9"></a><var>93.9</var>subdivision 2
         </statute_ref>, in determining the city's or county's current year levy limit;<br/>
<a id="pl.93.10"></a><var>93.10</var>    (18) for counties, to pay for the increase in their share of health and human service <br/>
<a id="pl.93.11"></a><var>93.11</var>costs caused by reductions in federal health and human services grants effective after <br/>
<a id="pl.93.12"></a><var>93.12</var>September 30, 2007;<br/>
<a id="pl.93.13"></a><var>93.13</var>    (19) for a city, for the costs reasonably and necessarily incurred for securing, <br/>
<a id="pl.93.14"></a><var>93.14</var>maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by <br/>
<a id="pl.93.15"></a><var>93.15</var>the commissioner of revenue under section 
         <statute_ref>275.74, subdivision 2</statute_ref>. A city must have either <br/>
<a id="pl.93.16"></a><var>93.16</var>(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in <br/>
<a id="pl.93.17"></a><var>93.17</var>the city or in a zip code area of the city that is at least 50 percent higher than the average <br/>
<a id="pl.93.18"></a><var>93.18</var>foreclosure rate in the metropolitan area, as defined in section 
         <statute_ref>473.121</statute_ref>, subdivision 2, <br/>
<a id="pl.93.19"></a><var>93.19</var>to use this special levy. For purposes of this paragraph, "foreclosure rate" means the <br/>
<a id="pl.93.20"></a><var>93.20</var>number of foreclosures, as indicated by sheriff sales records, divided by the number of <br/>
<a id="pl.93.21"></a><var>93.21</var>households in the city in 2007;<br/>
<a id="pl.93.22"></a><var>93.22</var>    (20) for a city, for the unreimbursed costs of redeployed traffic-control agents and <br/>
<a id="pl.93.23"></a><var>93.23</var>lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified <br/>
<a id="pl.93.24"></a><var>93.24</var>to the Federal Highway Administration;<br/>
<a id="pl.93.25"></a><var>93.25</var>    (21) to pay costs attributable to wages and benefits for sheriff, police, and fire <br/>
<a id="pl.93.26"></a><var>93.26</var>personnel. If a local governmental unit did not use this special levy in the previous year its <br/>
<a id="pl.93.27"></a><var>93.27</var>levy limit base under section 
         <statute_ref>275.71</statute_ref> shall be reduced by the amount equal to the amount it <br/>
<a id="pl.93.28"></a><var>93.28</var>levied for the purposes specified in this clause in the previous year;<br/>
<a id="pl.93.29"></a><var>93.29</var>    (22) an amount equal to any reductions in the certified aids or credit reimbursements <br/>
<a id="pl.93.30"></a><var>93.30</var>payable under sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.014</statute_ref>, and section 
         <statute_ref>273.1384</statute_ref>, due to unallotment <br/>
<a id="pl.93.31"></a><var>93.31</var>under section 
         <statute_ref>16A.152</statute_ref> or reductions under another provision of law. The amount of the <br/>
<a id="pl.93.32"></a><var>93.32</var>levy allowed under this clause for each year is limited to the amount unallotted or reduced <br/>
<a id="pl.93.33"></a><var>93.33</var>from the aids and credit reimbursements certified for payment in the year following the <br/>
<a id="pl.93.34"></a><var>93.34</var>calendar year in which the tax levy is certified unless the unallotment or reduction amount <br/>
<a id="pl.93.35"></a><var>93.35</var>is not known by September 1 of the levy certification year, and the local government has <br/>
<a id="pl.94.1"></a><var>94.1</var>not adjusted its levy under section 
         <statute_ref>275.065, subdivision 6</statute_ref>, or 
         <statute_ref>275.07, subdivision 6</statute_ref>, in <br/>
<a id="pl.94.2"></a><var>94.2</var>which case that unallotment or reduction amount may be levied in the following year;<br/>
<a id="pl.94.3"></a><var>94.3</var>(23) to pay for the difference between one-half of the costs of confining sex offenders <br/>
<a id="pl.94.4"></a><var>94.4</var>undergoing the civil commitment process and any state payments for this purpose pursuant <br/>
<a id="pl.94.5"></a><var>94.5</var>to section 
         <statute_ref>253B.185, subdivision 5</statute_ref>;<br/>
<a id="pl.94.6"></a><var>94.6</var>(24) for a county to pay the costs of the first year of maintaining and operating a new <br/>
<a id="pl.94.7"></a><var>94.7</var>facility or new expansion, either of which contains courts, corrections, dispatch, criminal <br/>
<a id="pl.94.8"></a><var>94.8</var>investigation labs, or other public safety facilities and for which all or a portion of the <br/>
<a id="pl.94.9"></a><var>94.9</var>funding for the site acquisition, building design, site preparation, construction, and related <br/>
<a id="pl.94.10"></a><var>94.10</var>equipment was issued or authorized prior to the imposition of levy limits in 2008. The <br/>
<a id="pl.94.11"></a><var>94.11</var>levy limit base shall then be increased by an amount equal to the new facility's first full <br/>
<a id="pl.94.12"></a><var>94.12</var>year's operating costs as described in this clause; and<br/>
<a id="pl.94.13"></a><var>94.13</var>(25) for the estimated amount of reduction to market value credit reimbursements <br/>
<a id="pl.94.14"></a><var>94.14</var>under section 
         <statute_ref>273.1384</statute_ref> for credits payable in the year in which the levy is payable., except <br/>
<a id="pl.94.15"></a><var>94.15</var>for a reduction due to the repeal of section 273.1384, subdivision 1; and<br/>
<a id="pl.94.16"></a><var>94.16</var>(26) for the reduction in the county share of payments to the county under sections <br/>
<a id="pl.94.17"></a><var>94.17</var>97A.061 and 477A.11 to 477A.17 between payments certified in calendar year 2011 and <br/>
<a id="pl.94.18"></a><var>94.18</var>the estimated amount of the county share in the year in which the levy is payable provided <br/>
<a id="pl.94.19"></a><var>94.19</var>the reduction is at least one percent of the county's total payable 2011 certified levy.<br/>
<a id="pl.94.20"></a><var>94.20</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in 2011 and 2012.<br/>
<br/>
<a id="bill.6.13.0"></a><a id="pl.94.21"></a><var>94.21</var>    Sec. 13. Minnesota Statutes 2010, section 275.71, subdivision 2, is amended to read:<br/>
<a id="pl.94.22"></a><var>94.22</var>    Subd. 2. <b>Levy limit base.</b> (a) The levy limit base for a local governmental unit for <br/>
<a id="pl.94.23"></a><var>94.23</var>taxes levied in 2008 is its levy aid base from the previous year, subject to any adjustments <br/>
<a id="pl.94.24"></a><var>94.24</var>under section 
         <statute_ref>275.72</statute_ref>. For taxes levied in 2009 and 2010 through 2012, the levy limit base <br/>
<a id="pl.94.25"></a><var>94.25</var>for a local governmental unit is its adjusted levy limit base in the previous year, subject <br/>
<a id="pl.94.26"></a><var>94.26</var>to any adjustments under section 
         <statute_ref>275.72</statute_ref>.<br/>
<a id="pl.94.27"></a><var>94.27</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in 2011 and 2012.<br/>
<br/>
<a id="bill.6.14.0"></a><a id="pl.94.28"></a><var>94.28</var>    Sec. 14. Minnesota Statutes 2010, section 275.71, subdivision 4, is amended to read:<br/>
<a id="pl.94.29"></a><var>94.29</var>    Subd. 4. <b>Adjusted levy limit base.</b> (a)  For taxes levied in 2008 through 2010 2012, <br/>
<a id="pl.94.30"></a><var>94.30</var>the adjusted levy limit base is equal to the levy limit base computed under subdivision 2 <br/>
<a id="pl.94.31"></a><var>94.31</var>or section 
         <statute_ref>275.72</statute_ref>, multiplied by:<br/>
<a id="pl.94.32"></a><var>94.32</var>    (1) one plus the percentage growth in the implicit price deflator, but the percentage <br/>
<a id="pl.94.33"></a><var>94.33</var>shall not be less than zero or exceed 3.9 percent;<br/>
<a id="pl.95.1"></a><var>95.1</var>    (2) one plus a percentage equal to 50 percent of the percentage increase in the number <br/>
<a id="pl.95.2"></a><var>95.2</var>of households, if any, for the most recent 12-month period for which data is available; and<br/>
<a id="pl.95.3"></a><var>95.3</var>    (3) one plus a percentage equal to 50 percent of the percentage increase in the <br/>
<a id="pl.95.4"></a><var>95.4</var>taxable market value of the jurisdiction due to new construction of class 3 property, as <br/>
<a id="pl.95.5"></a><var>95.5</var>defined in section 
         <statute_ref>273.13, subdivision 4</statute_ref>, except for state-assessed utility and railroad <br/>
<a id="pl.95.6"></a><var>95.6</var>property, for the most recent year for which data is available.<br/>
<a id="pl.95.7"></a><var>95.7</var>(b) If a city decertifies a tax increment finance district in the year in which the levy is <br/>
<a id="pl.95.8"></a><var>95.8</var>set, the base amount determined under paragraph (a) is increased by an amount equal to <br/>
<a id="pl.95.9"></a><var>95.9</var>the city's current year tax rate multiplied by the retained captured value for the district for <br/>
<a id="pl.95.10"></a><var>95.10</var>the year prior to the year in which the levy is set, as reported on the TIF supplement to <br/>
<a id="pl.95.11"></a><var>95.11</var>the abstract of tax lists.<br/>
<a id="pl.95.12"></a><var>95.12</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in 2011 and 2012.<br/>
<br/>
<a id="bill.6.15.0"></a><a id="pl.95.13"></a><var>95.13</var>    Sec. 15. Minnesota Statutes 2010, section 275.71, subdivision 5, is amended to read:<br/>
<a id="pl.95.14"></a><var>95.14</var>    Subd. 5. <b>Property tax levy limit.</b> (a) For taxes levied in 2008 through 2010 2012, <br/>
<a id="pl.95.15"></a><var>95.15</var>the property tax levy limit for a local governmental unit is equal to its adjusted levy limit <br/>
<a id="pl.95.16"></a><var>95.16</var>base determined under subdivision 4 plus any additional levy authorized under section <br/>
<statute_ref><a id="pl.95.17"></a><var>95.17</var>275.73
         </statute_ref>, which is levied against net tax capacity, reduced by the sum of (i) the total amount <br/>
<a id="pl.95.18"></a><var>95.18</var>of aids and reimbursements that the local governmental unit is certified to receive under <br/>
<a id="pl.95.19"></a><var>95.19</var>sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.014</statute_ref>, (ii) taconite aids under sections 
         <statute_ref>298.28</statute_ref> and 
         <statute_ref>298.282 <br/>
</statute_ref><a id="pl.95.20"></a><var>95.20</var>including any aid which was required to be placed in a special fund for expenditure in <br/>
<a id="pl.95.21"></a><var>95.21</var>the next succeeding year, (iii) estimated payments to the local governmental unit under <br/>
<a id="pl.95.22"></a><var>95.22</var>section 
         <statute_ref>272.029</statute_ref>, adjusted for any error in estimation in the preceding year, and (iv) aids <br/>
<a id="pl.95.23"></a><var>95.23</var>under section 
         <statute_ref>477A.16</statute_ref>.<br/>
<a id="pl.95.24"></a><var>95.24</var>(b) If an aid, payment, or other amount used in paragraph (a) to reduce a local <br/>
<a id="pl.95.25"></a><var>95.25</var>government unit's levy limit is reduced by an unallotment under section 
         <statute_ref>16A.152</statute_ref>, the <br/>
<a id="pl.95.26"></a><var>95.26</var>amount of the aid, payment, or other amount prior to the unallotment is used in the <br/>
<a id="pl.95.27"></a><var>95.27</var>computations in paragraph (a). In order for a local government unit to levy outside of its <br/>
<a id="pl.95.28"></a><var>95.28</var>limit to offset the reduction in revenues attributable to an unallotment, it must do so under, <br/>
<a id="pl.95.29"></a><var>95.29</var>and to the extent authorized by, a special levy authorization.<br/>
<a id="pl.95.30"></a><var>95.30</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in 2011 and 2012.<br/>
<br/>
<a id="bill.6.16.0"></a><a id="pl.95.31"></a><var>95.31</var>    Sec. 16. <b>[275.761] MAINTENANCE OF EFFORT REQUIREMENTS </b><br/>
<a id="pl.95.32"></a><var>95.32</var><b>SUSPENDED.</b><br/>
<a id="pl.96.1"></a><var>96.1</var>(a) Notwithstanding any law to the contrary and except as provided in paragraphs <br/>
<a id="pl.96.2"></a><var>96.2</var>(b) and (c), all maintenance of effort requirements for counties, including but not limited <br/>
<a id="pl.96.3"></a><var>96.3</var>to those under sections 116L.872, 134.34, 245.4835, 245.4932, 245.714, 256F.10, and <br/>
<a id="pl.96.4"></a><var>96.4</var>256F.13, are suspended.<br/>
<a id="pl.96.5"></a><var>96.5</var>(b) This section does not permit a county to suspend compliance with maintenance <br/>
<a id="pl.96.6"></a><var>96.6</var>of effort requirements to the extent that the suspension  would:<br/>
<a id="pl.96.7"></a><var>96.7</var>(1) require the state to expend additional money or incur additional costs; or<br/>
<a id="pl.96.8"></a><var>96.8</var>(2) cause a reduction in the receipt by the state or the county of federal funds.<br/>
<a id="pl.96.9"></a><var>96.9</var>(c) The commissioner of management and budget may determine the maintenance <br/>
<a id="pl.96.10"></a><var>96.10</var>of effort requirements that are not permitted, in whole or in part, to be suspended under <br/>
<a id="pl.96.11"></a><var>96.11</var>paragraph (b). The commissioner shall publish these determinations on the department's <br/>
<a id="pl.96.12"></a><var>96.12</var>Web site and no county may suspend compliance with a maintenance of effort requirement <br/>
<a id="pl.96.13"></a><var>96.13</var>that the commissioner determines is not subject to suspension.<br/>
<a id="pl.96.14"></a><var>96.14</var>(d) Notwithstanding any law to the contrary, all statutory and home rule charter cities <br/>
<a id="pl.96.15"></a><var>96.15</var>are exempt from the maintenance of effort requirements under section 134.34.<br/>
<a id="pl.96.16"></a><var>96.16</var><b>EFFECTIVE DATE.</b>This section is effective for maintenance of effort <br/>
<a id="pl.96.17"></a><var>96.17</var>requirements in calendar years 2012 and 2013.<br/>
<br/>
<a id="bill.6.17.0"></a><a id="pl.96.18"></a><var>96.18</var>    Sec. 17. <b> REPEALER.</b><br/>
<a id="pl.96.19"></a><var>96.19</var>Minnesota Statutes 2010, section 275.025, is repealed.<br/>
<a id="pl.96.20"></a><var>96.20</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in 2024, payable <br/>
<a id="pl.96.21"></a><var>96.21</var>in 2025, and thereafter.<br/>
<br/>
<a id="bill.7.0.0"></a>

<a id="bill.7.1.0"></a><a id="pl.96.24"></a><var>96.24</var>    Section 1. Minnesota Statutes 2010, section 88.49, subdivision 5, is amended to read:<br/>
<a id="pl.96.25"></a><var>96.25</var>    Subd. 5. <b>Cancellation.</b> Upon the failure of the owner faithfully to fulfill and <br/>
<a id="pl.96.26"></a><var>96.26</var>perform such contract or any provision thereof, or any requirement of sections 
         <statute_ref>88.47</statute_ref> to <br/>
<statute_ref><a id="pl.96.27"></a><var>96.27</var>88.53
         </statute_ref>, or any rule adopted by the commissioner thereunder, the commissioner may cancel <br/>
<a id="pl.96.28"></a><var>96.28</var>the contract in the manner herein provided. The commissioner shall give to the owner, in <br/>
<a id="pl.96.29"></a><var>96.29</var>the manner prescribed in section 
         <statute_ref>88.48, subdivision 4</statute_ref>, 60 days' notice of a hearing thereon <br/>
<a id="pl.96.30"></a><var>96.30</var>at which the owner may appear and show cause, if any, why the contract should not be <br/>
<a id="pl.96.31"></a><var>96.31</var>canceled. The commissioner shall thereupon determine whether the contract should be <br/>
<a id="pl.96.32"></a><var>96.32</var>canceled and make an order to that effect. Notice of the commissioner's determination <br/>
<a id="pl.96.33"></a><var>96.33</var>and the making of the order shall be given to the owner in the manner provided in section <br/>
<statute_ref><a id="pl.97.1"></a><var>97.1</var>88.48, subdivision 4
         </statute_ref>. On determining that the contract should be canceled and no appeal <br/>
<a id="pl.97.2"></a><var>97.2</var>therefrom be taken, the commissioner shall send notice thereof to the auditor of the county <br/>
<a id="pl.97.3"></a><var>97.3</var>and to the town clerk of the town affected and file with the recorder a certified copy of the <br/>
<a id="pl.97.4"></a><var>97.4</var>order, who shall forthwith note the cancellation upon the record thereof, and thereupon the <br/>
<a id="pl.97.5"></a><var>97.5</var>land therein described shall cease to be an auxiliary forest and, together with the timber <br/>
<a id="pl.97.6"></a><var>97.6</var>thereon, become liable to all taxes and assessments that otherwise would have been levied <br/>
<a id="pl.97.7"></a><var>97.7</var>against it had it never been an auxiliary forest from the time of the making of the contract, <br/>
<a id="pl.97.8"></a><var>97.8</var>any provisions of the statutes of limitation to the contrary notwithstanding, less the amount <br/>
<a id="pl.97.9"></a><var>97.9</var>of taxes paid under the provisions of section 
         <statute_ref>88.51, subdivision 1</statute_ref>, together with interest on <br/>
<a id="pl.97.10"></a><var>97.10</var>such taxes and assessments at six percent per annum, but without penalties.<br/>
<a id="pl.97.11"></a><var>97.11</var>    The commissioner may in like manner and with like effect cancel the contract upon <br/>
<a id="pl.97.12"></a><var>97.12</var>written application of the owner.<br/>
<a id="pl.97.13"></a><var>97.13</var>    The commissioner shall cancel any contract if the owner has made successful <br/>
<a id="pl.97.14"></a><var>97.14</var>application under sections 
<statute_ref>290C.01</statute_ref> to 
<statute_ref>290C.11</statute_ref>, the Sustainable Forest Incentive Act, and <br/>
<a id="pl.97.15"></a><var>97.15</var>has paid to the county treasurer the difference between the amount which would have been <br/>
<a id="pl.97.16"></a><var>97.16</var>paid had the land under contract been subject to the Minnesota Tree Growth Tax Law and <br/>
<a id="pl.97.17"></a><var>97.17</var>the Sustainable Forest Incentive Act from the date of the recording of the contract and <br/>
<a id="pl.97.18"></a><var>97.18</var>the amount actually paid under section 
<statute_ref>88.51, subdivisions 1 and 2</statute_ref>. This tax difference <br/>
<a id="pl.97.19"></a><var>97.19</var>must be calculated based on the years the lands would have been taxed under the Tree <br/>
<a id="pl.97.20"></a><var>97.20</var>Growth Tax Law and the Sustainable Forest Incentive Act. The sustainable forest tax <br/>
<a id="pl.97.21"></a><var>97.21</var>difference is net of the incentive payment of section 
<statute_ref>290C.07</statute_ref>. If the amount which would <br/>
<a id="pl.97.22"></a><var>97.22</var>have been paid, had the land under contract been under the Minnesota Tree Growth Tax <br/>
<a id="pl.97.23"></a><var>97.23</var>Law and the Sustainable Forest Incentive Act from the date of the filing of the contract, <br/>
<a id="pl.97.24"></a><var>97.24</var>is less than the amount actually paid under the contract, the cancellation shall be made <br/>
<a id="pl.97.25"></a><var>97.25</var>without further payment by the owner.<br/>
<a id="pl.97.26"></a><var>97.26</var>    When the execution of any contract creating an auxiliary forest shall have been <br/>
<a id="pl.97.27"></a><var>97.27</var>procured through fraud or deception practiced upon the county board or the commissioner <br/>
<a id="pl.97.28"></a><var>97.28</var>or any other person or body representing the state, it may be canceled upon suit brought by <br/>
<a id="pl.97.29"></a><var>97.29</var>the attorney general at the direction of the commissioner. This cancellation shall have the <br/>
<a id="pl.97.30"></a><var>97.30</var>same effect as the cancellation of a contract by the commissioner.<br/>
<a id="pl.97.31"></a><var>97.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.2.0"></a><a id="pl.97.32"></a><var>97.32</var>    Sec. 2. Minnesota Statutes 2010, section 88.49, subdivision 9a, is amended to read:<br/>
<a id="pl.97.33"></a><var>97.33</var>    Subd. 9a. <b>Land trades with governmental units.</b> Notwithstanding subdivisions <br/>
<a id="pl.97.34"></a><var>97.34</var>6 and 9, or section 
         <statute_ref>88.491, subdivision 2</statute_ref>, if an owner trades land under auxiliary forest <br/>
<a id="pl.97.35"></a><var>97.35</var>contract for land owned by a governmental unit and the owner agrees to use the land <br/>
<a id="pl.98.1"></a><var>98.1</var>received in trade from the governmental unit for the production of forest products, upon <br/>
<a id="pl.98.2"></a><var>98.2</var>resolution of the county board, no taxes and assessments shall be levied against the land <br/>
<a id="pl.98.3"></a><var>98.3</var>traded, except that any current or delinquent annual taxes or yield taxes due on that land <br/>
<a id="pl.98.4"></a><var>98.4</var>while it was under the auxiliary forest provision must be paid prior to the land exchange. <br/>
<a id="pl.98.5"></a><var>98.5</var>The land received from the governmental unit in the land trade automatically qualifies for <br/>
<a id="pl.98.6"></a><var>98.6</var>inclusion in the Sustainable Forest Incentive Act.<br/>
<a id="pl.98.7"></a><var>98.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.3.0"></a><a id="pl.98.8"></a><var>98.8</var>    Sec. 3. Minnesota Statutes 2010, section 97A.061, subdivision 1, is amended to read:<br/>
<a id="pl.98.9"></a><var>98.9</var>    Subdivision 1. <b>Applicability; amount.</b> (a) The commissioner shall annually make a <br/>
<a id="pl.98.10"></a><var>98.10</var>payment to each county having public hunting areas and game refuges. Money to make <br/>
<a id="pl.98.11"></a><var>98.11</var>the payments is annually appropriated for that purpose from the general fund. Except as <br/>
<a id="pl.98.12"></a><var>98.12</var>provided in paragraph (b), this section does not apply to state trust fund land and other <br/>
<a id="pl.98.13"></a><var>98.13</var>state land not purchased for game refuge or public hunting purposes. Except as provided <br/>
<a id="pl.98.14"></a><var>98.14</var>in paragraph (b), the payment shall be the greatest of:<br/>
<a id="pl.98.15"></a><var>98.15</var>(1) 35 30.8 percent of the gross receipts from all special use permits and leases of <br/>
<a id="pl.98.16"></a><var>98.16</var>land acquired for public hunting and game refuges;<br/>
<a id="pl.98.17"></a><var>98.17</var>(2) 50 44 cents per acre on land purchased actually used for public hunting or game <br/>
<a id="pl.98.18"></a><var>98.18</var>refuges; or<br/>
<a id="pl.98.19"></a><var>98.19</var>(3) three-fourths of one .66 percent of the appraised value of purchased land actually <br/>
<a id="pl.98.20"></a><var>98.20</var>used for public hunting and game refuges.<br/>
<a id="pl.98.21"></a><var>98.21</var>(b) The payment shall be 50 percent of the dollar amount adjusted for inflation as <br/>
<a id="pl.98.22"></a><var>98.22</var>determined under section 
         <statute_ref>477A.12, subdivision 1</statute_ref>, paragraph (a), clause (1), multiplied <br/>
<a id="pl.98.23"></a><var>98.23</var>by the number of acres of land in the county that are owned by another state agency for <br/>
<a id="pl.98.24"></a><var>98.24</var>military purposes and designated as a game refuge under section 
         <statute_ref>97A.085</statute_ref>.<br/>
<a id="pl.98.25"></a><var>98.25</var>(c) The payment must be reduced by the amount paid under subdivision 3 for <br/>
<a id="pl.98.26"></a><var>98.26</var>croplands managed for wild geese.<br/>
<a id="pl.98.27"></a><var>98.27</var>(d) The appraised value is the purchase price for five years after acquisition. <br/>
<a id="pl.98.28"></a><var>98.28</var>The appraised value shall be determined by the county assessor every five years after <br/>
<a id="pl.98.29"></a><var>98.29</var>acquisition.<br/>
<a id="pl.98.30"></a><var>98.30</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.98.31"></a><var>98.31</var>2011 and thereafter.<br/>
<br/>
<a id="bill.7.4.0"></a><a id="pl.98.32"></a><var>98.32</var>    Sec. 4. Minnesota Statutes 2010, section 97A.061, subdivision 3, is amended to read:<br/>
<a id="pl.99.1"></a><var>99.1</var>    Subd. 3. <b>Goose management croplands.</b> (a) The commissioner shall make a <br/>
<a id="pl.99.2"></a><var>99.2</var>payment on July 1 of each year to each county where the state owns more than 1,000 acres <br/>
<a id="pl.99.3"></a><var>99.3</var>of crop land, for wild goose management purposes. The payment shall be equal to 88 <br/>
<a id="pl.99.4"></a><var>99.4</var>percent of the taxes assessed on comparable, privately owned, adjacent land. Money to <br/>
<a id="pl.99.5"></a><var>99.5</var>make the payments is annually appropriated for that purpose from the general fund. The <br/>
<a id="pl.99.6"></a><var>99.6</var>county treasurer shall allocate and distribute the payment as provided in subdivision 2.<br/>
<a id="pl.99.7"></a><var>99.7</var>(b) The land used for goose management under this subdivision is exempt from <br/>
<a id="pl.99.8"></a><var>99.8</var>taxation as provided in sections 
         <statute_ref>272.01</statute_ref> and 
         <statute_ref>273.19</statute_ref>.<br/>
<a id="pl.99.9"></a><var>99.9</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.99.10"></a><var>99.10</var>2011 and thereafter.<br/>
<br/>
<a id="bill.7.5.0"></a><a id="pl.99.11"></a><var>99.11</var>    Sec. 5. Minnesota Statutes 2010, section 126C.01, subdivision 3, is amended to read:<br/>
<a id="pl.99.12"></a><var>99.12</var>    Subd. 3. <b>Referendum market value.</b> "Referendum market value" means the market <br/>
<a id="pl.99.13"></a><var>99.13</var>value of all taxable property, excluding property classified as class 2, noncommercial <br/>
<a id="pl.99.14"></a><var>99.14</var>4c(1), or 4c(4) under section 
         <statute_ref>273.13</statute_ref>. The portion of class 2a property consisting of the <br/>
<a id="pl.99.15"></a><var>99.15</var>house, garage, and surrounding one acre of land of an agricultural homestead is included <br/>
<a id="pl.99.16"></a><var>99.16</var>in referendum market value. For the purposes of this subdivision, in the case of class 1a, <br/>
<a id="pl.99.17"></a><var>99.17</var>1b, or 2a property, "market value" means the value prior to the exclusion under section <br/>
<a id="pl.99.18"></a><var>99.18</var>273.13, subdivision 35. Any class of property, or any portion of a class of property, that <br/>
<a id="pl.99.19"></a><var>99.19</var>is included in the definition of referendum market value and that has a class rate of less <br/>
<a id="pl.99.20"></a><var>99.20</var>than one percent under section 
         <statute_ref>273.13</statute_ref> shall have a referendum market value equal to its <br/>
<a id="pl.99.21"></a><var>99.21</var>net tax capacity market value times its class rate, multiplied by 100. <br/>
<a id="pl.99.22"></a><var>99.22</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.99.23"></a><var>99.23</var>thereafter.<br/>
<br/>
<a id="bill.7.6.0"></a><a id="pl.99.24"></a><var>99.24</var>    Sec. 6. Minnesota Statutes 2010, section 270A.03, subdivision 7, is amended to read:<br/>
<a id="pl.99.25"></a><var>99.25</var>    Subd. 7. <b>Refund.</b> "Refund" means an individual income tax refund or political <br/>
<a id="pl.99.26"></a><var>99.26</var>contribution refund, pursuant to chapter 290, or a property tax credit or refund, pursuant to <br/>
<a id="pl.99.27"></a><var>99.27</var>chapter 290A, or a sustainable forest tax payment to a claimant under chapter 290C.<br/>
<a id="pl.99.28"></a><var>99.28</var>For purposes of this chapter, lottery prizes, as set forth in section 
         <statute_ref>349A.08, <br/>
<a id="pl.99.29"></a><var>99.29</var>subdivision 8
         </statute_ref>, and amounts granted to persons by the legislature on the recommendation <br/>
<a id="pl.99.30"></a><var>99.30</var>of the joint senate-house of representatives Subcommittee on Claims shall be treated <br/>
<a id="pl.99.31"></a><var>99.31</var>as refunds.<br/>
<a id="pl.99.32"></a><var>99.32</var>In the case of a joint property tax refund payable to spouses under chapter 290A, <br/>
<a id="pl.99.33"></a><var>99.33</var>the refund shall be considered as belonging to each spouse in the proportion of the total <br/>
<a id="pl.100.1"></a><var>100.1</var>refund that equals each spouse's proportion of the total income determined under section <br/>
<statute_ref><a id="pl.100.2"></a><var>100.2</var>290A.03, subdivision 3
         </statute_ref>. In the case of a joint income tax refund under chapter 289A, the <br/>
<a id="pl.100.3"></a><var>100.3</var>refund shall be considered as belonging to each spouse in the proportion of the total <br/>
<a id="pl.100.4"></a><var>100.4</var>refund that equals each spouse's proportion of the total taxable income determined under <br/>
<a id="pl.100.5"></a><var>100.5</var>section 
         <statute_ref>290.01, subdivision 29</statute_ref>. The commissioner shall remit the entire refund to the <br/>
<a id="pl.100.6"></a><var>100.6</var>claimant agency, which shall, upon the request of the spouse who does not owe the debt, <br/>
<a id="pl.100.7"></a><var>100.7</var>determine the amount of the refund belonging to that spouse and refund the amount to <br/>
<a id="pl.100.8"></a><var>100.8</var>that spouse. For court fines, fees, and surcharges and court-ordered restitution under <br/>
<a id="pl.100.9"></a><var>100.9</var>section 
         <statute_ref>611A.04, subdivision 2</statute_ref>, the notice provided by the commissioner of revenue under <br/>
<a id="pl.100.10"></a><var>100.10</var>section 
         <statute_ref>270A.07, subdivision 2</statute_ref>, paragraph (b), serves as the appropriate legal notice <br/>
<a id="pl.100.11"></a><var>100.11</var>to the spouse who does not owe the debt.<br/>
<a id="pl.100.12"></a><var>100.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.7.0"></a><a id="pl.100.13"></a><var>100.13</var>    Sec. 7. Minnesota Statutes 2010, section 273.114, subdivision 2, as amended by Laws <br/>
<a id="pl.100.14"></a><var>100.14</var>2011, chapter 13, section 2, is amended to read:<br/>
<a id="pl.100.15"></a><var>100.15</var>    Subd. 2. <b>Requirements.</b> Class 2b property that had been properly enrolled under <br/>
<a id="pl.100.16"></a><var>100.16</var>section 273.111 for taxes payable in 2008, or that is part of an agricultural homestead <br/>
<a id="pl.100.17"></a><var>100.17</var>under section 273.13, subdivision 23, paragraph (a), at least a portion of which is enrolled <br/>
<a id="pl.100.18"></a><var>100.18</var>under section 
         <statute_ref>273.111</statute_ref>, is entitled to valuation and tax deferment under this section if:<br/>
<a id="pl.100.19"></a><var>100.19</var>    (1) the property is contiguous to class 2a property enrolled under section 
         <statute_ref>273.111</statute_ref> <br/>
<a id="pl.100.20"></a><var>100.20</var>under the same ownership;<br/>
<a id="pl.100.21"></a><var>100.21</var>    (2) there are no delinquent property taxes on the land; and<br/>
<a id="pl.100.22"></a><var>100.22</var>    (3) the property is not also enrolled for valuation and deferment under section <br/>
<a id="pl.100.23"></a><var>100.23</var>273.111 or 273.112, or chapter 290C or 473H.<br/>
<a id="pl.100.24"></a><var>100.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.8.0"></a><a id="pl.100.25"></a><var>100.25</var>    Sec. 8. Minnesota Statutes 2010, section 273.13, subdivision 23, is amended to read:<br/>
<a id="pl.100.26"></a><var>100.26</var>    Subd. 23. <b>Class 2.</b> (a) An agricultural homestead consists of class 2a agricultural <br/>
<a id="pl.100.27"></a><var>100.27</var>land that is homesteaded, along with any class 2b rural vacant land that is contiguous to <br/>
<a id="pl.100.28"></a><var>100.28</var>the class 2a land under the same ownership. The market value of the house and garage <br/>
<a id="pl.100.29"></a><var>100.29</var>and immediately surrounding one acre of land has the same class rates as class 1a or 1b <br/>
<a id="pl.100.30"></a><var>100.30</var>property under subdivision 22. The value of the remaining land including improvements <br/>
<a id="pl.100.31"></a><var>100.31</var>up to the first tier valuation limit of agricultural homestead property has a net class rate <br/>
<a id="pl.100.32"></a><var>100.32</var>of 0.5 percent of market value. The remaining property over the first tier has a class rate <br/>
<a id="pl.100.33"></a><var>100.33</var>of one percent of market value. For purposes of this subdivision, the "first tier valuation <br/>
<a id="pl.101.1"></a><var>101.1</var>limit of agricultural homestead property" and "first tier" means the limit certified under <br/>
<a id="pl.101.2"></a><var>101.2</var>section 
         <statute_ref>273.11</statute_ref>, subdivision 23.<br/>
<a id="pl.101.3"></a><var>101.3</var>    (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that <br/>
<a id="pl.101.4"></a><var>101.4</var>are agricultural land and buildings. Class 2a property has a net class rate of one percent of <br/>
<a id="pl.101.5"></a><var>101.5</var>market value, unless it is part of an agricultural homestead under paragraph (a). Class <br/>
<a id="pl.101.6"></a><var>101.6</var>2a property must also include any property that would otherwise be classified as 2b, <br/>
<a id="pl.101.7"></a><var>101.7</var>but is interspersed with class 2a property, including but not limited to sloughs, wooded <br/>
<a id="pl.101.8"></a><var>101.8</var>wind shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback <br/>
<a id="pl.101.9"></a><var>101.9</var>requirement, and other similar land that is impractical for the assessor to value separately <br/>
<a id="pl.101.10"></a><var>101.10</var>from the rest of the property or that is unlikely to be able to be sold separately from <br/>
<a id="pl.101.11"></a><var>101.11</var>the rest of the property.<br/>
<a id="pl.101.12"></a><var>101.12</var>    An assessor may classify the part of a parcel described in this subdivision that is used <br/>
<a id="pl.101.13"></a><var>101.13</var>for agricultural purposes as class 2a and the remainder in the class appropriate to its use.<br/>
<a id="pl.101.14"></a><var>101.14</var>    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof, <br/>
<a id="pl.101.15"></a><var>101.15</var>that are unplatted real estate, rural in character and not used for agricultural purposes, <br/>
<a id="pl.101.16"></a><var>101.16</var>including land used for growing trees for timber, lumber, and wood and wood products, <br/>
<a id="pl.101.17"></a><var>101.17</var>that is not improved with a structure. The presence of a minor, ancillary nonresidential <br/>
<a id="pl.101.18"></a><var>101.18</var>structure as defined by the commissioner of revenue does not disqualify the property from <br/>
<a id="pl.101.19"></a><var>101.19</var>classification under this paragraph. Any parcel of 20 acres or more improved with a <br/>
<a id="pl.101.20"></a><var>101.20</var>structure that is not a minor, ancillary nonresidential structure must be split-classified, and <br/>
<a id="pl.101.21"></a><var>101.21</var>ten acres must be assigned to the split parcel containing the structure. Class 2b property <br/>
<a id="pl.101.22"></a><var>101.22</var>has a net class rate of one percent of market value unless it is part of an agricultural <br/>
<a id="pl.101.23"></a><var>101.23</var>homestead under paragraph (a), or qualifies as class 2c under paragraph (d).<br/>
<a id="pl.101.24"></a><var>101.24</var>    (d) Class 2c managed forest land consists of no less than 20 and no more than <br/>
<a id="pl.101.25"></a><var>101.25</var>1,920 acres statewide per taxpayer that is being managed under a forest management <br/>
<a id="pl.101.26"></a><var>101.26</var>plan that meets the requirements of chapter 290C, but is not enrolled in the sustainable <br/>
<a id="pl.101.27"></a><var>101.27</var>forest resource management incentive program. It has a class rate of .65 percent, <br/>
<a id="pl.101.28"></a><var>101.28</var>provided that the owner of the property must apply to the assessor in order for the <br/>
<a id="pl.101.29"></a><var>101.29</var>property to initially qualify for the reduced rate and provide the information required <br/>
<a id="pl.101.30"></a><var>101.30</var>by the assessor to verify that the property qualifies for the reduced rate. If the assessor <br/>
<a id="pl.101.31"></a><var>101.31</var>receives the application and information before May 1 in an assessment year, the property <br/>
<a id="pl.101.32"></a><var>101.32</var>qualifies beginning with that assessment year. If the assessor receives the application <br/>
<a id="pl.101.33"></a><var>101.33</var>and information after April 30 in an assessment year, the property may not qualify until <br/>
<a id="pl.101.34"></a><var>101.34</var>the next assessment year. The commissioner of natural resources must concur that the <br/>
<a id="pl.101.35"></a><var>101.35</var>land is qualified. The commissioner of natural resources shall annually provide county <br/>
<a id="pl.101.36"></a><var>101.36</var>assessors verification information on a timely basis. The presence of a minor, ancillary <br/>
<a id="pl.102.1"></a><var>102.1</var>nonresidential structure as defined by the commissioner of revenue does not disqualify <br/>
<a id="pl.102.2"></a><var>102.2</var>the property from classification under this paragraph. For purposes of this paragraph, <br/>
<a id="pl.102.3"></a><var>102.3</var>a "forest management plan" means a written document providing a framework for <br/>
<a id="pl.102.4"></a><var>102.4</var>site-specific healthy, productive, and sustainable forest resources. A forest management <br/>
<a id="pl.102.5"></a><var>102.5</var>plan must include at least the following: (i) forest management goals for the land; (ii) a <br/>
<a id="pl.102.6"></a><var>102.6</var>reliable field inventory of the individual forest cover types, their age, and density; (iii) a <br/>
<a id="pl.102.7"></a><var>102.7</var>description of the soil type and quality; (iv) an aerial photo and/or map of the vegetation <br/>
<a id="pl.102.8"></a><var>102.8</var>and other natural features of the land clearly indicating the boundaries of the land and of <br/>
<a id="pl.102.9"></a><var>102.9</var>the forest land; (v) the proposed future conditions of the land; (vi) prescriptions to meet <br/>
<a id="pl.102.10"></a><var>102.10</var>proposed future conditions of the land; (vii) a recommended timetable for implementing <br/>
<a id="pl.102.11"></a><var>102.11</var>the prescribed activities; and (viii) a legal description of the land encompassing the <br/>
<a id="pl.102.12"></a><var>102.12</var>parcels included in the plan. All management activities prescribed in a plan must be in <br/>
<a id="pl.102.13"></a><var>102.13</var>accordance with the recommended timber harvesting and forest management guidelines. <br/>
<a id="pl.102.14"></a><var>102.14</var>The commissioner of natural resources shall provide a framework for plan content and <br/>
<a id="pl.102.15"></a><var>102.15</var>updating and revising plans.<br/>
<a id="pl.102.16"></a><var>102.16</var>    (e) Agricultural land as used in this section means contiguous acreage of ten <br/>
<a id="pl.102.17"></a><var>102.17</var>acres or more, used during the preceding year for agricultural purposes. "Agricultural <br/>
<a id="pl.102.18"></a><var>102.18</var>purposes" as used in this section means the raising, cultivation, drying, or storage of <br/>
<a id="pl.102.19"></a><var>102.19</var>agricultural products for sale, or the storage of machinery or equipment used in support <br/>
<a id="pl.102.20"></a><var>102.20</var>of agricultural production by the same farm entity. For a property to be classified as <br/>
<a id="pl.102.21"></a><var>102.21</var>agricultural based only on the drying or storage of agricultural products, the products <br/>
<a id="pl.102.22"></a><var>102.22</var>being dried or stored must have been produced by the same farm entity as the entity <br/>
<a id="pl.102.23"></a><var>102.23</var>operating the drying or storage facility. "Agricultural purposes" also includes enrollment <br/>
<a id="pl.102.24"></a><var>102.24</var>in the Reinvest in Minnesota program under sections 
         <statute_ref>103F.501</statute_ref> to 
         <statute_ref>103F.535</statute_ref> or the federal <br/>
<a id="pl.102.25"></a><var>102.25</var>Conservation Reserve Program as contained in Public Law 99-198 or a similar state <br/>
<a id="pl.102.26"></a><var>102.26</var>or federal conservation program if the property was classified as agricultural (i) under <br/>
<a id="pl.102.27"></a><var>102.27</var>this subdivision for the assessment year 2002 or (ii) in the year prior to its enrollment. <br/>
<a id="pl.102.28"></a><var>102.28</var>Agricultural classification shall not be based upon the market value of any residential <br/>
<a id="pl.102.29"></a><var>102.29</var>structures on the parcel or contiguous parcels under the same ownership.<br/>
<a id="pl.102.30"></a><var>102.30</var>    (f) Real estate of less than ten acres, which is exclusively or intensively used for <br/>
<a id="pl.102.31"></a><var>102.31</var>raising or cultivating agricultural products, shall be considered as agricultural land. To <br/>
<a id="pl.102.32"></a><var>102.32</var>qualify under this paragraph, property that includes a residential structure must be used <br/>
<a id="pl.102.33"></a><var>102.33</var>intensively for one of the following purposes:<br/>
<a id="pl.102.34"></a><var>102.34</var>    (i) for drying or storage of grain or storage of machinery or equipment used to <br/>
<a id="pl.102.35"></a><var>102.35</var>support agricultural activities on other parcels of property operated by the same farming <br/>
<a id="pl.102.36"></a><var>102.36</var>entity;<br/>
<a id="pl.103.1"></a><var>103.1</var>    (ii) as a nursery, provided that only those acres used to produce nursery stock are <br/>
<a id="pl.103.2"></a><var>103.2</var>considered agricultural land;<br/>
<a id="pl.103.3"></a><var>103.3</var>    (iii) for livestock or poultry confinement, provided that land that is used only for <br/>
<a id="pl.103.4"></a><var>103.4</var>pasturing and grazing does not qualify; or<br/>
<a id="pl.103.5"></a><var>103.5</var>    (iv) for market farming; for purposes of this paragraph, "market farming" means the <br/>
<a id="pl.103.6"></a><var>103.6</var>cultivation of one or more fruits or vegetables or production of animal or other agricultural <br/>
<a id="pl.103.7"></a><var>103.7</var>products for sale to local markets by the farmer or an organization with which the farmer <br/>
<a id="pl.103.8"></a><var>103.8</var>is affiliated.<br/>
<a id="pl.103.9"></a><var>103.9</var>    (g) Land shall be classified as agricultural even if all or a portion of the agricultural <br/>
<a id="pl.103.10"></a><var>103.10</var>use of that property is the leasing to, or use by another person for agricultural purposes.<br/>
<a id="pl.103.11"></a><var>103.11</var>    Classification under this subdivision is not determinative for qualifying under <br/>
<a id="pl.103.12"></a><var>103.12</var>section 
         <statute_ref>273.111</statute_ref>.<br/>
<a id="pl.103.13"></a><var>103.13</var>    (h) The property classification under this section supersedes, for property tax <br/>
<a id="pl.103.14"></a><var>103.14</var>purposes only, any locally administered agricultural policies or land use restrictions that <br/>
<a id="pl.103.15"></a><var>103.15</var>define minimum or maximum farm acreage.<br/>
<a id="pl.103.16"></a><var>103.16</var>    (i) The term "agricultural products" as used in this subdivision includes production <br/>
<a id="pl.103.17"></a><var>103.17</var>for sale of:<br/>
<a id="pl.103.18"></a><var>103.18</var>    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing <br/>
<a id="pl.103.19"></a><var>103.19</var>animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, <br/>
<a id="pl.103.20"></a><var>103.20</var>bees, and apiary products by the owner;<br/>
<a id="pl.103.21"></a><var>103.21</var>    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned <br/>
<a id="pl.103.22"></a><var>103.22</var>for agricultural use;<br/>
<a id="pl.103.23"></a><var>103.23</var>    (3) the commercial boarding of horses, which may include related horse training and <br/>
<a id="pl.103.24"></a><var>103.24</var>riding instruction, if the boarding is done on property that is also used for raising pasture <br/>
<a id="pl.103.25"></a><var>103.25</var>to graze horses or raising or cultivating other agricultural products as defined in clause (1);<br/>
<a id="pl.103.26"></a><var>103.26</var>    (4) property which is owned and operated by nonprofit organizations used for <br/>
<a id="pl.103.27"></a><var>103.27</var>equestrian activities, excluding racing;<br/>
<a id="pl.103.28"></a><var>103.28</var>    (5) game birds and waterfowl bred and raised for use on a shooting preserve licensed <br/>
<a id="pl.103.29"></a><var>103.29</var>under section 
         <statute_ref>97A.115</statute_ref>;<br/>
<a id="pl.103.30"></a><var>103.30</var>    (6) insects primarily bred to be used as food for animals;<br/>
<a id="pl.103.31"></a><var>103.31</var>    (7) trees, grown for sale as a crop, including short rotation woody crops, and not <br/>
<a id="pl.103.32"></a><var>103.32</var>sold for timber, lumber, wood, or wood products; and<br/>
<a id="pl.103.33"></a><var>103.33</var>    (8) maple syrup taken from trees grown by a person licensed by the Minnesota <br/>
<a id="pl.103.34"></a><var>103.34</var>Department of Agriculture under chapter 28A as a food processor.<br/>
<a id="pl.103.35"></a><var>103.35</var>    (j) If a parcel used for agricultural purposes is also used for commercial or industrial <br/>
<a id="pl.103.36"></a><var>103.36</var>purposes, including but not limited to:<br/>
<a id="pl.104.1"></a><var>104.1</var>    (1) wholesale and retail sales;<br/>
<a id="pl.104.2"></a><var>104.2</var>    (2) processing of raw agricultural products or other goods;<br/>
<a id="pl.104.3"></a><var>104.3</var>    (3) warehousing or storage of processed goods; and<br/>
<a id="pl.104.4"></a><var>104.4</var>    (4) office facilities for the support of the activities enumerated in clauses (1), (2), <br/>
<a id="pl.104.5"></a><var>104.5</var>and (3),<br/>
<a id="pl.104.6"></a><var>104.6</var>the assessor shall classify the part of the parcel used for agricultural purposes as class <br/>
<a id="pl.104.7"></a><var>104.7</var>1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its <br/>
<a id="pl.104.8"></a><var>104.8</var>use. The grading, sorting, and packaging of raw agricultural products for first sale is <br/>
<a id="pl.104.9"></a><var>104.9</var>considered an agricultural purpose. A greenhouse or other building where horticultural <br/>
<a id="pl.104.10"></a><var>104.10</var>or nursery products are grown that is also used for the conduct of retail sales must be <br/>
<a id="pl.104.11"></a><var>104.11</var>classified as agricultural if it is primarily used for the growing of horticultural or nursery <br/>
<a id="pl.104.12"></a><var>104.12</var>products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of <br/>
<a id="pl.104.13"></a><var>104.13</var>those products. Use of a greenhouse or building only for the display of already grown <br/>
<a id="pl.104.14"></a><var>104.14</var>horticultural or nursery products does not qualify as an agricultural purpose.<br/>
<a id="pl.104.15"></a><var>104.15</var>    (k) The assessor shall determine and list separately on the records the market value <br/>
<a id="pl.104.16"></a><var>104.16</var>of the homestead dwelling and the one acre of land on which that dwelling is located. If <br/>
<a id="pl.104.17"></a><var>104.17</var>any farm buildings or structures are located on this homesteaded acre of land, their market <br/>
<a id="pl.104.18"></a><var>104.18</var>value shall not be included in this separate determination.<br/>
<a id="pl.104.19"></a><var>104.19</var>    (l) Class 2d airport landing area consists of a landing area or public access area of <br/>
<a id="pl.104.20"></a><var>104.20</var>a privately owned public use airport. It has a class rate of one percent of market value. <br/>
<a id="pl.104.21"></a><var>104.21</var>To qualify for classification under this paragraph, a privately owned public use airport <br/>
<a id="pl.104.22"></a><var>104.22</var>must be licensed as a public airport under section 
         <statute_ref>360.018</statute_ref>. For purposes of this paragraph, <br/>
<a id="pl.104.23"></a><var>104.23</var>"landing area" means that part of a privately owned public use airport properly cleared, <br/>
<a id="pl.104.24"></a><var>104.24</var>regularly maintained, and made available to the public for use by aircraft and includes <br/>
<a id="pl.104.25"></a><var>104.25</var>runways, taxiways, aprons, and sites upon which are situated landing or navigational aids. <br/>
<a id="pl.104.26"></a><var>104.26</var>A landing area also includes land underlying both the primary surface and the approach <br/>
<a id="pl.104.27"></a><var>104.27</var>surfaces that comply with all of the following:<br/>
<a id="pl.104.28"></a><var>104.28</var>    (i) the land is properly cleared and regularly maintained for the primary purposes of <br/>
<a id="pl.104.29"></a><var>104.29</var>the landing, taking off, and taxiing of aircraft; but that portion of the land that contains <br/>
<a id="pl.104.30"></a><var>104.30</var>facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;<br/>
<a id="pl.104.31"></a><var>104.31</var>    (ii) the land is part of the airport property; and<br/>
<a id="pl.104.32"></a><var>104.32</var>    (iii) the land is not used for commercial or residential purposes.<br/>
<a id="pl.104.33"></a><var>104.33</var>The land contained in a landing area under this paragraph must be described and certified <br/>
<a id="pl.104.34"></a><var>104.34</var>by the commissioner of transportation. The certification is effective until it is modified, <br/>
<a id="pl.104.35"></a><var>104.35</var>or until the airport or landing area no longer meets the requirements of this paragraph. <br/>
<a id="pl.104.36"></a><var>104.36</var>For purposes of this paragraph, "public access area" means property used as an aircraft <br/>
<a id="pl.105.1"></a><var>105.1</var>parking ramp, apron, or storage hangar, or an arrival and departure building in connection <br/>
<a id="pl.105.2"></a><var>105.2</var>with the airport.<br/>
<a id="pl.105.3"></a><var>105.3</var>    (m) Class 2e consists of land with a commercial aggregate deposit that is not actively <br/>
<a id="pl.105.4"></a><var>105.4</var>being mined and is not otherwise classified as class 2a or 2b, provided that the land is not <br/>
<a id="pl.105.5"></a><var>105.5</var>located in a county that has elected to opt-out of the aggregate preservation program as <br/>
<a id="pl.105.6"></a><var>105.6</var>provided in section 
         <statute_ref>273.1115, subdivision 6</statute_ref>. It has a class rate of one percent of market <br/>
<a id="pl.105.7"></a><var>105.7</var>value. To qualify for classification under this paragraph, the property must be at least <br/>
<a id="pl.105.8"></a><var>105.8</var>ten contiguous acres in size and the owner of the property must record with the county <br/>
<a id="pl.105.9"></a><var>105.9</var>recorder of the county in which the property is located an affidavit containing:<br/>
<a id="pl.105.10"></a><var>105.10</var>    (1) a legal description of the property;<br/>
<a id="pl.105.11"></a><var>105.11</var>    (2) a disclosure that the property contains a commercial aggregate deposit that is not <br/>
<a id="pl.105.12"></a><var>105.12</var>actively being mined but is present on the entire parcel enrolled;<br/>
<a id="pl.105.13"></a><var>105.13</var>    (3) documentation that the conditional use under the county or local zoning <br/>
<a id="pl.105.14"></a><var>105.14</var>ordinance of this property is for mining; and<br/>
<a id="pl.105.15"></a><var>105.15</var>    (4) documentation that a permit has been issued by the local unit of government <br/>
<a id="pl.105.16"></a><var>105.16</var>or the mining activity is allowed under local ordinance. The disclosure must include a <br/>
<a id="pl.105.17"></a><var>105.17</var>statement from a registered professional geologist, engineer, or soil scientist delineating <br/>
<a id="pl.105.18"></a><var>105.18</var>the deposit and certifying that it is a commercial aggregate deposit.<br/>
<a id="pl.105.19"></a><var>105.19</var>    For purposes of this section and section 
         <statute_ref>273.1115</statute_ref>, "commercial aggregate deposit" <br/>
<a id="pl.105.20"></a><var>105.20</var>means a deposit that will yield crushed stone or sand and gravel that is suitable for use <br/>
<a id="pl.105.21"></a><var>105.21</var>as a construction aggregate; and "actively mined" means the removal of top soil and <br/>
<a id="pl.105.22"></a><var>105.22</var>overburden in preparation for excavation or excavation of a commercial deposit.<br/>
<a id="pl.105.23"></a><var>105.23</var>    (n) When any portion of the property under this subdivision or subdivision 22 begins <br/>
<a id="pl.105.24"></a><var>105.24</var>to be actively mined, the owner must file a supplemental affidavit within 60 days from <br/>
<a id="pl.105.25"></a><var>105.25</var>the day any aggregate is removed stating the number of acres of the property that is <br/>
<a id="pl.105.26"></a><var>105.26</var>actively being mined. The acres actively being mined must be (1) valued and classified <br/>
<a id="pl.105.27"></a><var>105.27</var>under subdivision 24 in the next subsequent assessment year, and (2) removed from the <br/>
<a id="pl.105.28"></a><var>105.28</var>aggregate resource preservation property tax program under section 
         <statute_ref>273.1115</statute_ref>, if the <br/>
<a id="pl.105.29"></a><var>105.29</var>land was enrolled in that program. Copies of the original affidavit and all supplemental <br/>
<a id="pl.105.30"></a><var>105.30</var>affidavits must be filed with the county assessor, the local zoning administrator, and the <br/>
<a id="pl.105.31"></a><var>105.31</var>Department of Natural Resources, Division of Land and Minerals. A supplemental <br/>
<a id="pl.105.32"></a><var>105.32</var>affidavit must be filed each time a subsequent portion of the property is actively mined, <br/>
<a id="pl.105.33"></a><var>105.33</var>provided that the minimum acreage change is five acres, even if the actual mining activity <br/>
<a id="pl.105.34"></a><var>105.34</var>constitutes less than five acres.<br/>
<a id="pl.106.1"></a><var>106.1</var>(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are <br/>
<a id="pl.106.2"></a><var>106.2</var>not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions <br/>
<a id="pl.106.3"></a><var>106.3</var>in section 
         <statute_ref>14.386</statute_ref> concerning exempt rules do not apply.<br/>
<a id="pl.106.4"></a><var>106.4</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in 2011, payable <br/>
<a id="pl.106.5"></a><var>106.5</var>in 2012, and thereafter.<br/>
<br/>
<a id="bill.7.9.0"></a><a id="pl.106.6"></a><var>106.6</var>    Sec. 9. Minnesota Statutes 2010, section 273.13, is amended by adding a subdivision <br/>
<a id="pl.106.7"></a><var>106.7</var>to read:<br/>
<a id="pl.106.8"></a><var>106.8</var>    Subd. 35. <b>Homestead market value exclusion.</b> (a) Prior to determining a property's <br/>
<a id="pl.106.9"></a><var>106.9</var>net tax capacity under this section, property classified as class 1a or 1b under subdivision <br/>
<a id="pl.106.10"></a><var>106.10</var>22, and the portion of property classified as class 2a under subdivision 23 consisting of <br/>
<a id="pl.106.11"></a><var>106.11</var>the house, garage, and surrounding one acre of land, shall be eligible for a market value <br/>
<a id="pl.106.12"></a><var>106.12</var>exclusion as determined under paragraph (b).<br/>
<a id="pl.106.13"></a><var>106.13</var>(b) For a homestead valued at $76,000 or less, the exclusion is 40 percent of market <br/>
<a id="pl.106.14"></a><var>106.14</var>value. For a homestead valued between $76,000 and $413,800, the exclusion is $30,400 <br/>
<a id="pl.106.15"></a><var>106.15</var>minus nine percent of the valuation over $76,000. For a homestead valued at $413,800 or <br/>
<a id="pl.106.16"></a><var>106.16</var>more, there is no valuation exclusion. The valuation exclusion shall be rounded to the <br/>
<a id="pl.106.17"></a><var>106.17</var>nearest whole dollar, and may not be less than zero.<br/>
<a id="pl.106.18"></a><var>106.18</var>(c) Any valuation exclusions or adjustments under section 273.11 shall be applied <br/>
<a id="pl.106.19"></a><var>106.19</var>prior to determining the amount of the valuation exclusion under this subdivision. <br/>
<a id="pl.106.20"></a><var>106.20</var>(d) In the case of a property that is classified as part homestead and part <br/>
<a id="pl.106.21"></a><var>106.21</var>nonhomestead, (i) the exclusion shall apply only to the homestead portion of the property, <br/>
<a id="pl.106.22"></a><var>106.22</var>but (ii) if a portion of a property is classified as nonhomestead solely because not all <br/>
<a id="pl.106.23"></a><var>106.23</var>the owners occupy the property, not all the owners have qualifying relatives occupying <br/>
<a id="pl.106.24"></a><var>106.24</var>the property, or solely because not all the spouses of owners occupy the property, the <br/>
<a id="pl.106.25"></a><var>106.25</var>exclusion amount shall be initially computed as if that nonhomestead portion were also in <br/>
<a id="pl.106.26"></a><var>106.26</var>the homestead class and then prorated to the owner-occupant's percentage of ownership. <br/>
<a id="pl.106.27"></a><var>106.27</var>For the purpose of this section, when an owner-occupant's spouse does not occupy the <br/>
<a id="pl.106.28"></a><var>106.28</var>property, the percentage of ownership for the owner-occupant spouse is one-half of the <br/>
<a id="pl.106.29"></a><var>106.29</var>couple's ownership percentage.<br/>
<a id="pl.106.30"></a><var>106.30</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.106.31"></a><var>106.31</var>thereafter.<br/>
<br/>
<a id="bill.7.10.0"></a><a id="pl.106.32"></a><var>106.32</var>    Sec. 10. Minnesota Statutes 2010, section 273.1384, subdivision 3, is amended to read:<br/>
<a id="pl.107.1"></a><var>107.1</var>    Subd. 3. <b>Credit reimbursements.</b> The county auditor shall determine the tax <br/>
<a id="pl.107.2"></a><var>107.2</var>reductions allowed under this section subdivision 2 within the county for each taxes <br/>
<a id="pl.107.3"></a><var>107.3</var>payable year and shall certify that amount to the commissioner of revenue as a part of the <br/>
<a id="pl.107.4"></a><var>107.4</var>abstracts of tax lists submitted by the county auditors under section 
         <statute_ref>275.29</statute_ref>. Any prior <br/>
<a id="pl.107.5"></a><var>107.5</var>year adjustments shall also be certified on the abstracts of tax lists. The commissioner <br/>
<a id="pl.107.6"></a><var>107.6</var>shall review the certifications for accuracy, and may make such changes as are deemed <br/>
<a id="pl.107.7"></a><var>107.7</var>necessary, or return the certification to the county auditor for correction. The credits <br/>
<a id="pl.107.8"></a><var>107.8</var>credit under this section must be used to proportionately reduce the net tax capacity-based <br/>
<a id="pl.107.9"></a><var>107.9</var>property tax payable to each local taxing jurisdiction as provided in section 
         <statute_ref>273.1393</statute_ref>.<br/>
<a id="pl.107.10"></a><var>107.10</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.107.11"></a><var>107.11</var>thereafter.<br/>
<br/>
<a id="bill.7.11.0"></a><a id="pl.107.12"></a><var>107.12</var>    Sec. 11. Minnesota Statutes 2010, section 273.1384, subdivision 4, is amended to read:<br/>
<a id="pl.107.13"></a><var>107.13</var>    Subd. 4. <b>Payment.</b> (a) The commissioner of revenue shall reimburse each local <br/>
<a id="pl.107.14"></a><var>107.14</var>taxing jurisdiction, other than school districts, for the tax reductions granted under this <br/>
<a id="pl.107.15"></a><var>107.15</var>section subdivision 2 in two equal installments on October 31 and December 26 of the <br/>
<a id="pl.107.16"></a><var>107.16</var>taxes payable year for which the reductions are granted, including in each payment <br/>
<a id="pl.107.17"></a><var>107.17</var>the prior year adjustments certified on the abstracts for that taxes payable year. The <br/>
<a id="pl.107.18"></a><var>107.18</var>reimbursements related to tax increments shall be issued in one installment each year on <br/>
<a id="pl.107.19"></a><var>107.19</var>December 26.<br/>
<a id="pl.107.20"></a><var>107.20</var>(b) The commissioner of revenue shall certify the total of the tax reductions granted <br/>
<a id="pl.107.21"></a><var>107.21</var>under this section subdivision 2 for each taxes payable year within each school district to <br/>
<a id="pl.107.22"></a><var>107.22</var>the commissioner of the Department of Education and the commissioner of education shall <br/>
<a id="pl.107.23"></a><var>107.23</var>pay the reimbursement amounts to each school district as provided in section 
         <statute_ref>273.1392</statute_ref>.<br/>
<a id="pl.107.24"></a><var>107.24</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.107.25"></a><var>107.25</var>thereafter.<br/>
<br/>
<a id="bill.7.12.0"></a><a id="pl.107.26"></a><var>107.26</var>    Sec. 12. Minnesota Statutes 2010, section 273.1393, is amended to read:<br/>
<a id="pl.107.27"></a><var>107.27</var><b>273.1393 COMPUTATION OF NET PROPERTY TAXES.</b><br/>
<a id="pl.107.28"></a><var>107.28</var>    Notwithstanding any other provisions to the contrary, "net" property taxes are <br/>
<a id="pl.107.29"></a><var>107.29</var>determined by subtracting the credits in the order listed from the gross tax:<br/>
<a id="pl.107.30"></a><var>107.30</var>    (1) disaster credit as provided in sections 
         <statute_ref>273.1231</statute_ref> to 
         <statute_ref>273.1235</statute_ref>;<br/>
<a id="pl.107.31"></a><var>107.31</var>    (2) powerline credit as provided in section 
         <statute_ref>273.42</statute_ref>;<br/>
<a id="pl.107.32"></a><var>107.32</var>    (3) agricultural preserves credit as provided in section 
         <statute_ref>473H.10</statute_ref>;<br/>
<a id="pl.107.33"></a><var>107.33</var>    (4) enterprise zone credit as provided in section 
         <statute_ref>469.171</statute_ref>;<br/>
<a id="pl.108.1"></a><var>108.1</var>    (5) disparity reduction credit;<br/>
<a id="pl.108.2"></a><var>108.2</var>    (6) conservation tax credit as provided in section 
         <statute_ref>273.119</statute_ref>;<br/>
<a id="pl.108.3"></a><var>108.3</var>    (7) homestead and agricultural credits credit as provided in section 
         <statute_ref>273.1384</statute_ref>;<br/>
<a id="pl.108.4"></a><var>108.4</var>    (8) taconite homestead credit as provided in section 
         <statute_ref>273.135</statute_ref>;<br/>
<a id="pl.108.5"></a><var>108.5</var>    (9) supplemental homestead credit as provided in section 
         <statute_ref>273.1391; and<br/>
</statute_ref><a id="pl.108.6"></a><var>108.6</var>    (10) the bovine tuberculosis zone credit, as provided in section 
         <statute_ref>273.113</statute_ref>.<br/>
<a id="pl.108.7"></a><var>108.7</var>    The combination of all property tax credits must not exceed the gross tax amount.<br/>
<a id="pl.108.8"></a><var>108.8</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.108.9"></a><var>108.9</var>thereafter.<br/>
<br/>
<a id="bill.7.13.0"></a><a id="pl.108.10"></a><var>108.10</var>    Sec. 13. Minnesota Statutes 2010, section 273.1398, subdivision 3, is amended to read:<br/>
<a id="pl.108.11"></a><var>108.11</var>    Subd. 3. <b>Disparity reduction aid.</b>  The amount of disparity aid certified in 2012 and <br/>
<a id="pl.108.12"></a><var>108.12</var>subsequent years for each taxing school district within each unique taxing jurisdiction <br/>
<a id="pl.108.13"></a><var>108.13</var>for taxes payable in the prior year shall be multiplied by the ratio of (1) the jurisdiction's <br/>
<a id="pl.108.14"></a><var>108.14</var>tax capacity using the class rates for taxes payable in the year for which aid is being <br/>
<a id="pl.108.15"></a><var>108.15</var>computed, to (2) its tax capacity using the class rates for taxes payable in the year prior to <br/>
<a id="pl.108.16"></a><var>108.16</var>that for which aid is being computed, both based upon market values for taxes payable in <br/>
<a id="pl.108.17"></a><var>108.17</var>the year prior to that for which aid is being computed. If the commissioner determines <br/>
<a id="pl.108.18"></a><var>108.18</var>that insufficient information is available to reasonably and timely calculate the numerator <br/>
<a id="pl.108.19"></a><var>108.19</var>in this ratio for the first taxes payable year that a class rate change or new class rate is <br/>
<a id="pl.108.20"></a><var>108.20</var>effective, the commissioner shall omit the effects of that class rate change or new class <br/>
<a id="pl.108.21"></a><var>108.21</var>rate when calculating this ratio for aid payable in that taxes payable year. For aid payable <br/>
<a id="pl.108.22"></a><var>108.22</var>in the year following a year for which such omission was made, the commissioner shall <br/>
<a id="pl.108.23"></a><var>108.23</var>use in the denominator for the class that was changed or created, the tax capacity for taxes <br/>
<a id="pl.108.24"></a><var>108.24</var>payable two years prior to that in which the aid is payable, based on market values for <br/>
<a id="pl.108.25"></a><var>108.25</var>taxes payable in the year prior to that for which aid is being computed is equal to the <br/>
<a id="pl.108.26"></a><var>108.26</var>amount certified for aid payable in 2011.<br/>
<a id="pl.108.27"></a><var>108.27</var><b>EFFECTIVE DATE.</b>This section is effective for aid payable in 2012 and thereafter.<br/>
<br/>
<a id="bill.7.14.0"></a><a id="pl.108.28"></a><var>108.28</var>    Sec. 14. Minnesota Statutes 2010, section 276.04, subdivision 2, is amended to read:<br/>
<a id="pl.108.29"></a><var>108.29</var>    Subd. 2. <b>Contents of tax statements.</b> (a) The treasurer shall provide for the <br/>
<a id="pl.108.30"></a><var>108.30</var>printing of the tax statements. The commissioner of revenue shall prescribe the form of <br/>
<a id="pl.108.31"></a><var>108.31</var>the property tax statement and its contents. The tax statement must not state or imply <br/>
<a id="pl.108.32"></a><var>108.32</var>that property tax credits are paid by the state of Minnesota. The statement must contain <br/>
<a id="pl.108.33"></a><var>108.33</var>a tabulated statement of the dollar amount due to each taxing authority and the amount <br/>
<a id="pl.109.1"></a><var>109.1</var>of the state tax from the parcel of real property for which a particular tax statement is <br/>
<a id="pl.109.2"></a><var>109.2</var>prepared. The dollar amounts attributable to the county, the state tax, the voter approved <br/>
<a id="pl.109.3"></a><var>109.3</var>school tax, the other local school tax, the township or municipality, and the total of <br/>
<a id="pl.109.4"></a><var>109.4</var>the metropolitan special taxing districts as defined in section 
         <statute_ref>275.065, subdivision 3</statute_ref>, <br/>
<a id="pl.109.5"></a><var>109.5</var>paragraph (i), must be separately stated. The amounts due all other special taxing districts, <br/>
<a id="pl.109.6"></a><var>109.6</var>if any, may be aggregated except that any levies made by the regional rail authorities in the <br/>
<a id="pl.109.7"></a><var>109.7</var>county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter <br/>
<a id="pl.109.8"></a><var>109.8</var>398A shall be listed on a separate line directly under the appropriate county's levy. If the <br/>
<a id="pl.109.9"></a><var>109.9</var>county levy under this paragraph includes an amount for a lake improvement district as <br/>
<a id="pl.109.10"></a><var>109.10</var>defined under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that purpose <br/>
<a id="pl.109.11"></a><var>109.11</var>must be separately stated from the remaining county levy amount. In the case of Ramsey <br/>
<a id="pl.109.12"></a><var>109.12</var>County, if the county levy under this paragraph includes an amount for public library <br/>
<a id="pl.109.13"></a><var>109.13</var>service under section 
         <statute_ref>134.07</statute_ref>, the amount attributable for that purpose may be separated <br/>
<a id="pl.109.14"></a><var>109.14</var>from the remaining county levy amount. The amount of the tax on homesteads qualifying <br/>
<a id="pl.109.15"></a><var>109.15</var>under the senior citizens' property tax deferral program under chapter 290B is the total <br/>
<a id="pl.109.16"></a><var>109.16</var>amount of property tax before subtraction of the deferred property tax amount. The <br/>
<a id="pl.109.17"></a><var>109.17</var>amount of the tax on contamination value imposed under sections 
         <statute_ref>270.91</statute_ref> to 
         <statute_ref>270.98</statute_ref>, if any, <br/>
<a id="pl.109.18"></a><var>109.18</var>must also be separately stated. The dollar amounts, including the dollar amount of any <br/>
<a id="pl.109.19"></a><var>109.19</var>special assessments, may be rounded to the nearest even whole dollar. For purposes of this <br/>
<a id="pl.109.20"></a><var>109.20</var>section whole odd-numbered dollars may be adjusted to the next higher even-numbered <br/>
<a id="pl.109.21"></a><var>109.21</var>dollar. The amount of market value excluded under section 
         <statute_ref>273.11, subdivision 16</statute_ref>, if any, <br/>
<a id="pl.109.22"></a><var>109.22</var>must also be listed on the tax statement.<br/>
<a id="pl.109.23"></a><var>109.23</var>    (b) The property tax statements for manufactured homes and sectional structures <br/>
<a id="pl.109.24"></a><var>109.24</var>taxed as personal property shall contain the same information that is required on the <br/>
<a id="pl.109.25"></a><var>109.25</var>tax statements for real property.<br/>
<a id="pl.109.26"></a><var>109.26</var>    (c) Real and personal property tax statements must contain the following information <br/>
<a id="pl.109.27"></a><var>109.27</var>in the order given in this paragraph. The information must contain the current year tax <br/>
<a id="pl.109.28"></a><var>109.28</var>information in the right column with the corresponding information for the previous year <br/>
<a id="pl.109.29"></a><var>109.29</var>in a column on the left:<br/>
<a id="pl.109.30"></a><var>109.30</var>    (1) the property's estimated market value under section 
         <statute_ref>273.11, subdivision 1</statute_ref>;<br/>
<a id="pl.109.31"></a><var>109.31</var>(2) the property's homestead market value exclusion under section 273.13, <br/>
<a id="pl.109.32"></a><var>109.32</var>subdivision 35;<br/>
<a id="pl.109.33"></a><var>109.33</var>    (2) (3) the property's taxable market value after reductions under section sections <br/>
<statute_ref><a id="pl.109.34"></a><var>109.34</var>273.11
         </statute_ref>, subdivisions 1a and 16, and 273.13, subdivision 35;<br/>
<a id="pl.109.35"></a><var>109.35</var>    (3) (4) the property's gross tax, before credits;<br/>
<a id="pl.110.1"></a><var>110.1</var>    (4) (5) for homestead residential and agricultural properties, the credits credit  under <br/>
<a id="pl.110.2"></a><var>110.2</var>section 
         <statute_ref>273.1384</statute_ref>;<br/>
<a id="pl.110.3"></a><var>110.3</var>    (5) (6) any credits received under sections 
         <statute_ref>273.119</statute_ref>; 
         <statute_ref>273.1234</statute_ref> or 
         <statute_ref>273.1235</statute_ref>; 
         <statute_ref>273.135</statute_ref>; <br/>
<statute_ref><a id="pl.110.4"></a><var>110.4</var>273.1391
         </statute_ref>; 
         <statute_ref>273.1398, subdivision 4</statute_ref>; 
         <statute_ref>469.171</statute_ref>; and 
         <statute_ref>473H.10</statute_ref>, except that the amount of <br/>
<a id="pl.110.5"></a><var>110.5</var>credit received under section 
         <statute_ref>273.135</statute_ref> must be separately stated and identified as "taconite <br/>
<a id="pl.110.6"></a><var>110.6</var>tax relief"; and<br/>
<a id="pl.110.7"></a><var>110.7</var>    (6) (7) the net tax payable in the manner required in paragraph (a).<br/>
<a id="pl.110.8"></a><var>110.8</var>    (d) If the county uses envelopes for mailing property tax statements and if the county <br/>
<a id="pl.110.9"></a><var>110.9</var>agrees, a taxing district may include a notice with the property tax statement notifying <br/>
<a id="pl.110.10"></a><var>110.10</var>taxpayers when the taxing district will begin its budget deliberations for the current <br/>
<a id="pl.110.11"></a><var>110.11</var>year, and encouraging taxpayers to attend the hearings. If the county allows notices to <br/>
<a id="pl.110.12"></a><var>110.12</var>be included in the envelope containing the property tax statement, and if more than <br/>
<a id="pl.110.13"></a><var>110.13</var>one taxing district relative to a given property decides to include a notice with the tax <br/>
<a id="pl.110.14"></a><var>110.14</var>statement, the county treasurer or auditor must coordinate the process and may combine <br/>
<a id="pl.110.15"></a><var>110.15</var>the information on a single announcement.<br/>
<a id="pl.110.16"></a><var>110.16</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.110.17"></a><var>110.17</var>thereafter.<br/>
<br/>
<a id="bill.7.15.0"></a><a id="pl.110.18"></a><var>110.18</var>    Sec. 15. Minnesota Statutes 2010, section 289A.50, subdivision 1, is amended to read:<br/>
<a id="pl.110.19"></a><var>110.19</var>    Subdivision 1. <b>General right to refund.</b> (a) Subject to the requirements of this <br/>
<a id="pl.110.20"></a><var>110.20</var>section and section 
         <statute_ref>289A.40</statute_ref>, a taxpayer who has paid a tax in excess of the taxes lawfully <br/>
<a id="pl.110.21"></a><var>110.21</var>due and who files a written claim for refund will be refunded or credited the overpayment <br/>
<a id="pl.110.22"></a><var>110.22</var>of the tax determined by the commissioner to be erroneously paid.<br/>
<a id="pl.110.23"></a><var>110.23</var>(b) The claim must specify the name of the taxpayer, the date when and the period <br/>
<a id="pl.110.24"></a><var>110.24</var>for which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer <br/>
<a id="pl.110.25"></a><var>110.25</var>claims was erroneously paid, the grounds on which a refund is claimed, and other <br/>
<a id="pl.110.26"></a><var>110.26</var>information relative to the payment and in the form required by the commissioner. An <br/>
<a id="pl.110.27"></a><var>110.27</var>income tax, estate tax, or corporate franchise tax return, or amended return claiming an <br/>
<a id="pl.110.28"></a><var>110.28</var>overpayment constitutes a claim for refund.<br/>
<a id="pl.110.29"></a><var>110.29</var>(c) When, in the course of an examination, and within the time for requesting a <br/>
<a id="pl.110.30"></a><var>110.30</var>refund, the commissioner determines that there has been an overpayment of tax, the <br/>
<a id="pl.110.31"></a><var>110.31</var>commissioner shall refund or credit the overpayment to the taxpayer and no demand <br/>
<a id="pl.110.32"></a><var>110.32</var>is necessary. If the overpayment exceeds $1, the amount of the overpayment must <br/>
<a id="pl.110.33"></a><var>110.33</var>be refunded to the taxpayer. If the amount of the overpayment is less than $1, the <br/>
<a id="pl.110.34"></a><var>110.34</var>commissioner is not required to refund. In these situations, the commissioner does not <br/>
<a id="pl.110.35"></a><var>110.35</var>have to make written findings or serve notice by mail to the taxpayer.<br/>
<a id="pl.111.1"></a><var>111.1</var>(d) If the amount allowable as a credit for withholding, estimated taxes, or dependent <br/>
<a id="pl.111.2"></a><var>111.2</var>care exceeds the tax against which the credit is allowable, the amount of the excess is <br/>
<a id="pl.111.3"></a><var>111.3</var>considered an overpayment. The refund allowed by section 
<statute_ref>290.06, subdivision 23</statute_ref>, is also <br/>
<a id="pl.111.4"></a><var>111.4</var>considered an overpayment. The requirements of section 
         <statute_ref>270C.33</statute_ref> do not apply to the <br/>
<a id="pl.111.5"></a><var>111.5</var>refunding of such an overpayment shown on the original return filed by a taxpayer.<br/>
<a id="pl.111.6"></a><var>111.6</var>(e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes, <br/>
<a id="pl.111.7"></a><var>111.7</var>penalties, and interest reported in the return of the entertainment entity or imposed by <br/>
<a id="pl.111.8"></a><var>111.8</var>section 
         <statute_ref>290.9201</statute_ref>, the excess must be refunded to the entertainment entity. If the excess is <br/>
<a id="pl.111.9"></a><var>111.9</var>less than $1, the commissioner need not refund that amount.<br/>
<a id="pl.111.10"></a><var>111.10</var>(f) If the surety deposit required for a construction contract exceeds the liability of <br/>
<a id="pl.111.11"></a><var>111.11</var>the out-of-state contractor, the commissioner shall refund the difference to the contractor.<br/>
<a id="pl.111.12"></a><var>111.12</var>(g) An action of the commissioner in refunding the amount of the overpayment does <br/>
<a id="pl.111.13"></a><var>111.13</var>not constitute a determination of the correctness of the return of the taxpayer.<br/>
<a id="pl.111.14"></a><var>111.14</var>(h) There is appropriated from the general fund to the commissioner of revenue the <br/>
<a id="pl.111.15"></a><var>111.15</var>amount necessary to pay refunds allowed under this section.<br/>
<a id="pl.111.16"></a><var>111.16</var><b>EFFECTIVE DATE.</b>This section is effective for refund claims based on <br/>
<a id="pl.111.17"></a><var>111.17</var>contributions made after June 30, 2011.<br/>
<br/>
<a id="bill.7.16.0"></a><a id="pl.111.18"></a><var>111.18</var>    Sec. 16. Minnesota Statutes 2010, section 290.01, subdivision 6, is amended to read:<br/>
<a id="pl.111.19"></a><var>111.19</var>    Subd. 6. <b>Taxpayer.</b> The term "taxpayer" means any person or corporation subject to <br/>
<a id="pl.111.20"></a><var>111.20</var>a tax imposed by this chapter. For purposes of section 
<statute_ref>290.06, subdivision 23</statute_ref>, the term <br/>
<a id="pl.111.21"></a><var>111.21</var>"taxpayer" means an individual eligible to vote in Minnesota under section 
<statute_ref>201.014</statute_ref>.<br/>
<a id="pl.111.22"></a><var>111.22</var><b>EFFECTIVE DATE.</b>This section is effective for refund claims based on <br/>
<a id="pl.111.23"></a><var>111.23</var>contributions made after June 30, 2011.<br/>
<br/>
<a id="bill.7.17.0"></a><a id="pl.111.24"></a><var>111.24</var>    Sec. 17. Minnesota Statutes 2010, section 290A.03, subdivision 11, is amended to read:<br/>
<a id="pl.111.25"></a><var>111.25</var>    Subd. 11. <b>Rent constituting property taxes.</b> "Rent constituting property taxes" <br/>
<a id="pl.111.26"></a><var>111.26</var>means 19 15 percent of the gross rent actually paid in cash, or its equivalent, or the portion <br/>
<a id="pl.111.27"></a><var>111.27</var>of rent paid in lieu of property taxes, in any calendar year by a claimant for the right <br/>
<a id="pl.111.28"></a><var>111.28</var>of occupancy of the claimant's Minnesota homestead in the calendar year, and which <br/>
<a id="pl.111.29"></a><var>111.29</var>rent constitutes the basis, in the succeeding calendar year of a claim for relief under this <br/>
<a id="pl.111.30"></a><var>111.30</var>chapter by the claimant.<br/>
<a id="pl.111.31"></a><var>111.31</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on rent paid in <br/>
<a id="pl.111.32"></a><var>111.32</var>2010 and thereafter.<br/>
<br/>
<a id="bill.7.18.0"></a><a id="pl.112.1"></a><var>112.1</var>    Sec. 18. Minnesota Statutes 2010, section 290A.03, subdivision 13, is amended to read:<br/>
<a id="pl.112.2"></a><var>112.2</var>    Subd. 13. <b>Property taxes payable.</b> "Property taxes payable" means the property tax <br/>
<a id="pl.112.3"></a><var>112.3</var>exclusive of special assessments, penalties, and interest payable on a claimant's homestead <br/>
<a id="pl.112.4"></a><var>112.4</var>after deductions made under sections 
         <statute_ref>273.135</statute_ref>, 
         <statute_ref>273.1384</statute_ref>, 
         <statute_ref>273.1391</statute_ref>, 
         <statute_ref>273.42, subdivision 2</statute_ref>, <br/>
<a id="pl.112.5"></a><var>112.5</var>and any other state paid property tax credits in any calendar year, and after any refund <br/>
<a id="pl.112.6"></a><var>112.6</var>claimed and allowable under section 
         <statute_ref>290A.04, subdivision 2h</statute_ref>, that is first payable in <br/>
<a id="pl.112.7"></a><var>112.7</var>the year that the property tax is payable. In the case of a claimant who makes ground <br/>
<a id="pl.112.8"></a><var>112.8</var>lease payments, "property taxes payable" includes the amount of the payments directly <br/>
<a id="pl.112.9"></a><var>112.9</var>attributable to the property taxes assessed against the parcel on which the house is located. <br/>
<a id="pl.112.10"></a><var>112.10</var>No apportionment or reduction of the "property taxes payable" shall be required for the <br/>
<a id="pl.112.11"></a><var>112.11</var>use of a portion of the claimant's homestead for a business purpose if the claimant does not <br/>
<a id="pl.112.12"></a><var>112.12</var>deduct any business depreciation expenses for the use of a portion of the homestead in the <br/>
<a id="pl.112.13"></a><var>112.13</var>determination of federal adjusted gross income. For homesteads which are manufactured <br/>
<a id="pl.112.14"></a><var>112.14</var>homes as defined in section 
         <statute_ref>273.125, subdivision 8</statute_ref>, and for homesteads which are park <br/>
<a id="pl.112.15"></a><var>112.15</var>trailers taxed as manufactured homes under section 
         <statute_ref>168.012, subdivision 9</statute_ref>, "property <br/>
<a id="pl.112.16"></a><var>112.16</var>taxes payable" shall also include 19 15 percent of the gross rent paid in the preceding <br/>
<a id="pl.112.17"></a><var>112.17</var>year for the site on which the homestead is located. When a homestead is owned by <br/>
<a id="pl.112.18"></a><var>112.18</var>two or more persons as joint tenants or tenants in common, such tenants shall determine <br/>
<a id="pl.112.19"></a><var>112.19</var>between them which tenant may claim the property taxes payable on the homestead. If <br/>
<a id="pl.112.20"></a><var>112.20</var>they are unable to agree, the matter shall be referred to the commissioner of revenue <br/>
<a id="pl.112.21"></a><var>112.21</var>whose decision shall be final. Property taxes are considered payable in the year prescribed <br/>
<a id="pl.112.22"></a><var>112.22</var>by law for payment of the taxes.<br/>
<a id="pl.112.23"></a><var>112.23</var>In the case of a claim relating to "property taxes payable," the claimant must have <br/>
<a id="pl.112.24"></a><var>112.24</var>owned and occupied the homestead on January 2 of the year in which the tax is payable <br/>
<a id="pl.112.25"></a><var>112.25</var>and (i) the property must have been classified as homestead property pursuant to section <br/>
<statute_ref><a id="pl.112.26"></a><var>112.26</var>273.124
         </statute_ref>, on or before December 15 of the assessment year to which the "property taxes <br/>
<a id="pl.112.27"></a><var>112.27</var>payable" relate; or (ii) the claimant must provide documentation from the local assessor <br/>
<a id="pl.112.28"></a><var>112.28</var>that application for homestead classification has been made on or before December 15 <br/>
<a id="pl.112.29"></a><var>112.29</var>of the year in which the "property taxes payable" were payable and that the assessor has <br/>
<a id="pl.112.30"></a><var>112.30</var>approved the application.<br/>
<a id="pl.112.31"></a><var>112.31</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on rent paid in <br/>
<a id="pl.112.32"></a><var>112.32</var>2010 and following years.<br/>
<br/>
<a id="bill.7.19.0"></a><a id="pl.112.33"></a><var>112.33</var>    Sec. 19. Minnesota Statutes 2010, section 290A.04, subdivision 2, is amended to read:<br/>
<a id="pl.112.34"></a><var>112.34</var>    Subd. 2. <b>Homeowners.</b> A claimant whose property taxes payable are in excess <br/>
<a id="pl.112.35"></a><var>112.35</var>of the percentage of the household income stated below shall pay an amount equal to <br/>
<a id="pl.113.1"></a><var>113.1</var>the percent of income shown for the appropriate household income level along with the <br/>
<a id="pl.113.2"></a><var>113.2</var>percent to be paid by the claimant of the remaining amount of property taxes payable. <br/>
<a id="pl.113.3"></a><var>113.3</var>The state refund equals the amount of property taxes payable that remain, up to the state <br/>
<a id="pl.113.4"></a><var>113.4</var>refund amount shown below.<br/>
<table>
<col width="50px"/>
<col width="17.5"/>
<col width="17.5"/>
<col width="17.5"/>
<col width="7.5"/>
<col width="5"/>
<tr>
<td><a id="pl.113.5"></a><var>113.5</var><br/>
<a id="pl.113.6"></a><var>113.6</var><br/>
<a id="pl.113.7"></a><var>113.7</var><br/>
</td>
<td align="right">Household Income<br/>
</td>
<td align="center">Percent of Income<br/>
</td>
<td align="center">Percent Paid by<br/>
Claimant<br/>
</td>
<td align="right" colspan="2">Maximum <br/>
State<br/>
Refund<br/>
</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.113.8"></a><var>113.8</var><br/>
</td>
<td align="right">$0 to 1,189<br/>
</td>
<td align="center">1.0 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,850<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.9"></a><var>113.9</var><br/>
</td>
<td align="right">1,190 to 2,379<br/>
</td>
<td align="center">1.1 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,850<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.10"></a><var>113.10</var><br/>
</td>
<td align="right">2,380 to 3,589<br/>
</td>
<td align="center">1.2 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,800<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.11"></a><var>113.11</var><br/>
</td>
<td align="right">3,590 to 4,789<br/>
</td>
<td align="center">1.3 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,800<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.12"></a><var>113.12</var><br/>
</td>
<td align="right">4,790 to 5,979<br/>
</td>
<td align="center">1.4 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,730<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.13"></a><var>113.13</var><br/>
</td>
<td align="right">5,980 to 8,369<br/>
</td>
<td align="center">1.5 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,730<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.14"></a><var>113.14</var><br/>
</td>
<td align="right">8,370 to 9,559<br/>
</td>
<td align="center">1.6 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,670<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.15"></a><var>113.15</var><br/>
</td>
<td align="right">9,560 to 10,759<br/>
</td>
<td align="center">1.7 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,670<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.16"></a><var>113.16</var><br/>
</td>
<td align="right">10,760 to 11,949<br/>
</td>
<td align="center">1.8 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,610<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.17"></a><var>113.17</var><br/>
</td>
<td align="right">11,950 to 13,139<br/>
</td>
<td align="center">1.9 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,610<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.18"></a><var>113.18</var><br/>
</td>
<td align="right">13,140 to 14,349<br/>
</td>
<td align="center">2.0 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,540<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.19"></a><var>113.19</var><br/>
</td>
<td align="right">14,350 to 16,739<br/>
</td>
<td align="center">2.1 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,540<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.20"></a><var>113.20</var><br/>
</td>
<td align="right">16,740 to 17,929<br/>
</td>
<td align="center">2.2 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,480<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.21"></a><var>113.21</var><br/>
</td>
<td align="right">17,930 to 19,119<br/>
</td>
<td align="center">2.3 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,480<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.22"></a><var>113.22</var><br/>
</td>
<td align="right">19,120 to 20,319<br/>
</td>
<td align="center">2.4 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,420<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.23"></a><var>113.23</var><br/>
</td>
<td align="right">20,320 to 25,099<br/>
</td>
<td align="center">2.5 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,420<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.24"></a><var>113.24</var><br/>
</td>
<td align="right">25,100 to 28,679<br/>
</td>
<td align="center">2.6 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,360<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.25"></a><var>113.25</var><br/>
</td>
<td align="right">28,680 to 35,849<br/>
</td>
<td align="center">2.7 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,360<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.26"></a><var>113.26</var><br/>
</td>
<td align="right">35,850 to 41,819<br/>
</td>
<td align="center">2.8 percent<br/>
</td>
<td align="center">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,240<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.27"></a><var>113.27</var><br/>
</td>
<td align="right">41,820 to 47,799<br/>
</td>
<td align="center">3.0 percent<br/>
</td>
<td align="center">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,240<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.28"></a><var>113.28</var><br/>
</td>
<td align="right">47,800 to 53,779<br/>
</td>
<td align="center">3.2 percent<br/>
</td>
<td align="center">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,110<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.29"></a><var>113.29</var><br/>
</td>
<td align="right">53,780 to 59,749<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">990<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.30"></a><var>113.30</var><br/>
</td>
<td align="right">59,750 to 65,729<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">870<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.31"></a><var>113.31</var><br/>
</td>
<td align="right">65,730 to 69,319<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">740<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.32"></a><var>113.32</var><br/>
</td>
<td align="right">69,320 to 71,719<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">610<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.33"></a><var>113.33</var><br/>
</td>
<td align="right">71,720 to 74,619<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">500<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.34"></a><var>113.34</var><br/>
</td>
<td align="right">74,620 to 77,519<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">370<br/>
</td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="17.5"/>
<col width="17.5"/>
<col width="17.5"/>
<col width="7.5"/>
<col width="5"/>
<tr>
<td><a id="pl.113.35"></a><var>113.35</var><br/>
<a id="pl.113.36"></a><var>113.36</var><br/>
<a id="pl.113.37"></a><var>113.37</var><br/>
</td>
<td align="right">Household Income<br/>
</td>
<td align="center">Percent of Income<br/>
</td>
<td align="center">Percent Paid by<br/>
Claimant<br/>
</td>
<td align="right" colspan="2">Maximum <br/>
State<br/>
Refund<br/>
</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.113.38"></a><var>113.38</var><br/>
</td>
<td align="right">$0 to 1,549<br/>
</td>
<td align="center">1.0 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.39"></a><var>113.39</var><br/>
</td>
<td align="right">1,550 to 3,089<br/>
</td>
<td align="center">1.1 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.40"></a><var>113.40</var><br/>
</td>
<td align="right">3,090 to 4,669<br/>
</td>
<td align="center">1.2 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.41"></a><var>113.41</var><br/>
</td>
<td align="right">4,670 to 6,229<br/>
</td>
<td align="center">1.3 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.113.42"></a><var>113.42</var><br/>
</td>
<td align="right">6,230 to 7,769<br/>
</td>
<td align="center">1.4 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.1"></a><var>114.1</var><br/>
</td>
<td align="right">7,770 to 10,879<br/>
</td>
<td align="center">1.5 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.2"></a><var>114.2</var><br/>
</td>
<td align="right">10,880 to 12,429<br/>
</td>
<td align="center">1.6 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.3"></a><var>114.3</var><br/>
</td>
<td align="right">12,430 to 13,989<br/>
</td>
<td align="center">1.7 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.4"></a><var>114.4</var><br/>
</td>
<td align="right">13,990 to 15,539<br/>
</td>
<td align="center">1.8 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.5"></a><var>114.5</var><br/>
</td>
<td align="right">15,540 to 17,079<br/>
</td>
<td align="center">1.9 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.6"></a><var>114.6</var><br/>
</td>
<td align="right">17,080 to 18,659<br/>
</td>
<td align="center">2.0 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.7"></a><var>114.7</var><br/>
</td>
<td align="right">18,660 to 21,759<br/>
</td>
<td align="center">2.1 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.8"></a><var>114.8</var><br/>
</td>
<td align="right">21,760 to 23,309<br/>
</td>
<td align="center">2.2 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.9"></a><var>114.9</var><br/>
</td>
<td align="right">23,310 to 24,859<br/>
</td>
<td align="center">2.3 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.10"></a><var>114.10</var><br/>
</td>
<td align="right">24,860 to 26,419<br/>
</td>
<td align="center">2.4 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.11"></a><var>114.11</var><br/>
</td>
<td align="right">26,420 to 32,629<br/>
</td>
<td align="center">2.5 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.12"></a><var>114.12</var><br/>
</td>
<td align="right">32,630 to 37,279<br/>
</td>
<td align="center">2.6 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.13"></a><var>114.13</var><br/>
</td>
<td align="right">37,280 to 46,609<br/>
</td>
<td align="center">2.7 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.14"></a><var>114.14</var><br/>
</td>
<td align="right">46,610 to 54,369<br/>
</td>
<td align="center">2.8 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.15"></a><var>114.15</var><br/>
</td>
<td align="right">54,370 to 62,139<br/>
</td>
<td align="center">2.8 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,750<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.16"></a><var>114.16</var><br/>
</td>
<td align="right">62,140 to 69,909<br/>
</td>
<td align="center">3.0 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,440<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.17"></a><var>114.17</var><br/>
</td>
<td align="right">69,910 to 77,679<br/>
</td>
<td align="center">3.0 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,290<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.18"></a><var>114.18</var><br/>
</td>
<td align="right">77,680 to 85,449<br/>
</td>
<td align="center">3.0 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,130<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.19"></a><var>114.19</var><br/>
</td>
<td align="right">85,450 to 90,119<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">960<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.20"></a><var>114.20</var><br/>
</td>
<td align="right">90,120 to 93,239<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">790<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.21"></a><var>114.21</var><br/>
</td>
<td align="right">93,240 to 97,009<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">650<br/>
</td>
</tr>
<tr>
<td><a id="pl.114.22"></a><var>114.22</var><br/>
</td>
<td align="right">97,010 to 100,779<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">480<br/>
</td>
</tr>
</table><a id="pl.114.23"></a><var>114.23</var>    The payment made to a claimant shall be the amount of the state refund calculated <br/>
<a id="pl.114.24"></a><var>114.24</var>under this subdivision. No payment is allowed if the claimant's household income is <br/>
<a id="pl.114.25"></a><var>114.25</var>$77,520 $100,780 or more.<br/>
<a id="pl.114.26"></a><var>114.26</var><b>EFFECTIVE DATE.</b>This section is effective beginning with refunds based on <br/>
<a id="pl.114.27"></a><var>114.27</var>taxes payable in 2012.<br/>
<br/>
<a id="bill.7.20.0"></a><a id="pl.114.28"></a><var>114.28</var>    Sec. 20. Minnesota Statutes 2010, section 290A.04, subdivision 2a, is amended to read:<br/>
<a id="pl.114.29"></a><var>114.29</var>    Subd. 2a. <b>Renters</b><b>; senior or disabled</b><b>.</b> A claimant whose rent constituting property <br/>
<a id="pl.114.30"></a><var>114.30</var>taxes exceeds the percentage of the household income stated below must pay an amount <br/>
<a id="pl.114.31"></a><var>114.31</var>equal to the percent of income shown for the appropriate household income level along <br/>
<a id="pl.114.32"></a><var>114.32</var>with the percent to be paid by the claimant of the remaining amount of rent constituting <br/>
<a id="pl.114.33"></a><var>114.33</var>property taxes. The state refund equals the amount of rent constituting property taxes that <br/>
<a id="pl.114.34"></a><var>114.34</var>remain, up to the maximum state refund amount shown below. This subdivision applies <br/>
<a id="pl.114.35"></a><var>114.35</var>only if the claimant or claimant's spouse was disabled or attained the age of 65 on or <br/>
<a id="pl.114.36"></a><var>114.36</var>before December 31 of the year for which the rent was paid.<br/>
<table>
<col width="50px"/>
<col width="17.5"/>
<col width="17.5"/>
<col width="12.5"/>
<col width="12.5"/>
<col width="4.8"/>
<tr>
<td><a id="pl.115.1"></a><var>115.1</var><br/>
<a id="pl.115.2"></a><var>115.2</var><br/>
<a id="pl.115.3"></a><var>115.3</var><br/>
</td>
<td align="right">Household Income<br/>
</td>
<td align="center">Percent of Income<br/>
</td>
<td align="right">Percent Paid by<br/>
                  		Claimant<br/>
</td>
<td align="right" colspan="2">Maximum <br/>
                  		State<br/>
                  		Refund<br/>
</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.115.4"></a><var>115.4</var><br/>
<a id="pl.115.5"></a><var>115.5</var><br/>
</td>
<td align="right">$0 to 3,589 4,599<br/>
</td>
<td align="center">1.0 percent<br/>
</td>
<td align="right">5 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,520<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.6"></a><var>115.6</var><br/>
<a id="pl.115.7"></a><var>115.7</var><br/>
</td>
<td align="right">3,590 to 4,779<br/>
 4,600 to 6,119<br/>
</td>
<td align="center">1.0 percent<br/>
</td>
<td align="right">10 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,520<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.8"></a><var>115.8</var><br/>
<a id="pl.115.9"></a><var>115.9</var><br/>
</td>
<td align="right">4,780 to 5,969<br/>
 6,120 to 7,639<br/>
</td>
<td align="center">1.1 percent<br/>
</td>
<td align="right">10 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,520<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.10"></a><var>115.10</var><br/>
<a id="pl.115.11"></a><var>115.11</var><br/>
</td>
<td align="right">5,970 to 8,369<br/>
 7,640 to 10,719<br/>
</td>
<td align="center">1.2 percent<br/>
</td>
<td align="right">10 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,520<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.12"></a><var>115.12</var><br/>
<a id="pl.115.13"></a><var>115.13</var><br/>
</td>
<td align="right">8,370 to 10,759<br/>
 10,720 to 13,779<br/>
</td>
<td align="center">1.3 percent<br/>
</td>
<td align="right">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,520<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.14"></a><var>115.14</var><br/>
<a id="pl.115.15"></a><var>115.15</var><br/>
</td>
<td align="right">10,760 to 11,949<br/>
 13,780 to 15,299<br/>
</td>
<td align="center">1.4 percent<br/>
</td>
<td align="right">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,520<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.16"></a><var>115.16</var><br/>
<a id="pl.115.17"></a><var>115.17</var><br/>
</td>
<td align="right">11,950 to 13,139<br/>
 15,300 to 16,819<br/>
</td>
<td align="center">1.4 percent<br/>
</td>
<td align="right">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,520<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.18"></a><var>115.18</var><br/>
<a id="pl.115.19"></a><var>115.19</var><br/>
</td>
<td align="right">13,140 to 15,539<br/>
 16,820 to 19,899<br/>
</td>
<td align="center">1.5 percent<br/>
</td>
<td align="right">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,520<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.20"></a><var>115.20</var><br/>
<a id="pl.115.21"></a><var>115.21</var><br/>
</td>
<td align="right">15,540 to 16,729<br/>
 19,900 to 21,419<br/>
</td>
<td align="center">1.6 percent<br/>
</td>
<td align="right">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,520<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.22"></a><var>115.22</var><br/>
<a id="pl.115.23"></a><var>115.23</var><br/>
</td>
<td align="right">16,730 to 17,919<br/>
 21,420 to 22,939<br/>
</td>
<td align="center">1.7 percent<br/>
</td>
<td align="right">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,520<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.24"></a><var>115.24</var><br/>
<a id="pl.115.25"></a><var>115.25</var><br/>
</td>
<td align="right">17,920 to 20,319<br/>
 22,940 to 26,009<br/>
</td>
<td align="center">1.8 percent<br/>
</td>
<td align="right">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,520<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.26"></a><var>115.26</var><br/>
<a id="pl.115.27"></a><var>115.27</var><br/>
</td>
<td align="right">20,320 to 21,509<br/>
 26,010 to 27,539<br/>
</td>
<td align="center">1.9 percent<br/>
</td>
<td align="right">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.28"></a><var>115.28</var><br/>
<a id="pl.115.29"></a><var>115.29</var><br/>
</td>
<td align="right">21,510 to 22,699<br/>
 27,540 to 29,059<br/>
</td>
<td align="center">2.0 percent<br/>
</td>
<td align="right">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,400<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.30"></a><var>115.30</var><br/>
<a id="pl.115.31"></a><var>115.31</var><br/>
</td>
<td align="right">22,700 to 23,899<br/>
 29,060 to 30,599<br/>
</td>
<td align="center">2.2 percent<br/>
</td>
<td align="right">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,300<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.32"></a><var>115.32</var><br/>
<a id="pl.115.33"></a><var>115.33</var><br/>
</td>
<td align="right">23,900 to 25,089<br/>
 30,600 to 32,119<br/>
</td>
<td align="center">2.4 percent<br/>
</td>
<td align="right">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,200<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.34"></a><var>115.34</var><br/>
<a id="pl.115.35"></a><var>115.35</var><br/>
</td>
<td align="right">25,090 to 26,289<br/>
 32,120 to 33,659<br/>
</td>
<td align="center">2.6 percent<br/>
</td>
<td align="right">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.36"></a><var>115.36</var><br/>
<a id="pl.115.37"></a><var>115.37</var><br/>
</td>
<td align="right">26,290 to 27,489<br/>
 33,660 to 35,189<br/>
</td>
<td align="center">2.7 percent<br/>
</td>
<td align="right">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.38"></a><var>115.38</var><br/>
<a id="pl.115.39"></a><var>115.39</var><br/>
</td>
<td align="right">27,490 to 28,679<br/>
 35,190 to 36,719<br/>
</td>
<td align="center">2.8 percent<br/>
</td>
<td align="right">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
750<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.40"></a><var>115.40</var><br/>
<a id="pl.115.41"></a><var>115.41</var><br/>
</td>
<td align="right">28,680 to 29,869<br/>
 36,720 to 38,239<br/>
</td>
<td align="center">2.9 percent<br/>
</td>
<td align="right">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
500<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.42"></a><var>115.42</var><br/>
<a id="pl.115.43"></a><var>115.43</var><br/>
</td>
<td align="right">29,870 to 31,079<br/>
 38,240 to 39,999<br/>
</td>
<td align="center">3.0 percent<br/>
</td>
<td align="right">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
250<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.44"></a><var>115.44</var><br/>
</td>
<td align="right">31,080 to 32,269<br/>
</td>
<td align="center">3.1 percent<br/>
</td>
<td align="right">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.45"></a><var>115.45</var><br/>
</td>
<td align="right">32,270 to 33,459<br/>
</td>
<td align="center">3.2 percent<br/>
</td>
<td align="right">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.46"></a><var>115.46</var><br/>
</td>
<td align="right">33,460 to 34,649<br/>
</td>
<td align="center">3.3 percent<br/>
</td>
<td align="right">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,080<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.47"></a><var>115.47</var><br/>
</td>
<td align="right">34,650 to 35,849<br/>
</td>
<td align="center">3.4 percent<br/>
</td>
<td align="right">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">960<br/>
</td>
</tr>
<tr>
<td><a id="pl.115.48"></a><var>115.48</var><br/>
</td>
<td align="right">35,850 to 37,049<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="right">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">830<br/>
</td>
</tr>
<tr>
<td><a id="pl.116.1"></a><var>116.1</var><br/>
</td>
<td align="right">37,050 to 38,239<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="right">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">720<br/>
</td>
</tr>
<tr>
<td><a id="pl.116.2"></a><var>116.2</var><br/>
</td>
<td align="right">38,240 to 39,439<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="right">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">600<br/>
</td>
</tr>
<tr>
<td><a id="pl.116.3"></a><var>116.3</var><br/>
</td>
<td align="right">38,440 to 40,629<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="right">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">360<br/>
</td>
</tr>
<tr>
<td><a id="pl.116.4"></a><var>116.4</var><br/>
</td>
<td align="right">40,630 to 41,819<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="right">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">120<br/>
</td>
</tr>
</table><a id="pl.116.5"></a><var>116.5</var>The payment made to a claimant is the amount of the state refund calculated under <br/>
<a id="pl.116.6"></a><var>116.6</var>this subdivision. No payment is allowed if the claimant's household income is $41,820 <br/>
<a id="pl.116.7"></a><var>116.7</var>$40,000 or more.<br/>
<a id="pl.116.8"></a><var>116.8</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on rent paid in <br/>
<a id="pl.116.9"></a><var>116.9</var>2010 and following years.<br/>
<br/>
<a id="bill.7.21.0"></a><a id="pl.116.10"></a><var>116.10</var>    Sec. 21. Minnesota Statutes 2010, section 290A.04, is amended by adding a <br/>
<a id="pl.116.11"></a><var>116.11</var>subdivision to read:<br/>
<a id="pl.116.12"></a><var>116.12</var>    Subd. 2k. <b>Renters; nonsenior nondisabled.</b> A claimant whose rent constituting <br/>
<a id="pl.116.13"></a><var>116.13</var>property taxes exceeds the percentage of the household income stated below must pay <br/>
<a id="pl.116.14"></a><var>116.14</var>an amount equal to the percent of income shown for the appropriate household income <br/>
<a id="pl.116.15"></a><var>116.15</var>level along with the percent to be paid by the claimant of the remaining amount of rent <br/>
<a id="pl.116.16"></a><var>116.16</var>constituting property taxes. The state refund equals the amount of rent constituting <br/>
<a id="pl.116.17"></a><var>116.17</var>property taxes that remain, up to the maximum state refund amount shown below. This <br/>
<a id="pl.116.18"></a><var>116.18</var>subdivision applies only if the claimant or claimant's spouse is not eligible for a refund <br/>
<a id="pl.116.19"></a><var>116.19</var>under subdivision 2a.<br/>
<table>
<col width="50px"/>
<col width="17.5"/>
<col width="17.5"/>
<col width="12.5"/>
<col width="12.5"/>
<col width="5"/>
<tr>
<td><a id="pl.116.20"></a><var>116.20</var><br/>
<a id="pl.116.21"></a><var>116.21</var><br/>
<a id="pl.116.22"></a><var>116.22</var><br/>
</td>
<td align="right">Household Income<br/>
</td>
<td align="center">Percent of Income<br/>
</td>
<td align="right">Percent Paid by<br/>
Claimant<br/>
</td>
<td align="right" colspan="2">Maximum <br/>
State<br/>
Refund<br/>
</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.116.23"></a><var>116.23</var><br/>
</td>
<td align="right">$0 to 4,599<br/>
</td>
<td align="center">1.0 percent<br/>
</td>
<td align="right">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.116.24"></a><var>116.24</var><br/>
</td>
<td align="right">4,600 to 6,119<br/>
</td>
<td align="center">1.0 percent<br/>
</td>
<td align="right">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.116.25"></a><var>116.25</var><br/>
</td>
<td align="right">6,120 to 7,639<br/>
</td>
<td align="center">1.1 percent<br/>
</td>
<td align="right">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.116.26"></a><var>116.26</var><br/>
</td>
<td align="right">7,640 to 10,719<br/>
</td>
<td align="center">1.2 percent<br/>
</td>
<td align="right">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">900<br/>
</td>
</tr>
<tr>
<td><a id="pl.116.27"></a><var>116.27</var><br/>
</td>
<td align="right">10,720 to 13,779<br/>
</td>
<td align="center">1.3 percent<br/>
</td>
<td align="right">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">800<br/>
</td>
</tr>
<tr>
<td><a id="pl.116.28"></a><var>116.28</var><br/>
</td>
<td align="right">13,780 to 15,299<br/>
</td>
<td align="center">1.4 percent<br/>
</td>
<td align="right">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">800<br/>
</td>
</tr>
<tr>
<td><a id="pl.116.29"></a><var>116.29</var><br/>
</td>
<td align="right">15,300 to 16,819<br/>
</td>
<td align="center">1.4 percent<br/>
</td>
<td align="right">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">600<br/>
</td>
</tr>
<tr>
<td><a id="pl.116.30"></a><var>116.30</var><br/>
</td>
<td align="right">16,820 to 19,899<br/>
</td>
<td align="center">1.5 percent<br/>
</td>
<td align="right">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">600<br/>
</td>
</tr>
<tr>
<td><a id="pl.116.31"></a><var>116.31</var><br/>
</td>
<td align="right">19,900 to 21,419<br/>
</td>
<td align="center">1.6 percent<br/>
</td>
<td align="right">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">400<br/>
</td>
</tr>
<tr>
<td><a id="pl.116.32"></a><var>116.32</var><br/>
</td>
<td align="right">21,420 to 22,939<br/>
</td>
<td align="center">1.7 percent<br/>
</td>
<td align="right">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">400<br/>
</td>
</tr>
<tr>
<td><a id="pl.116.33"></a><var>116.33</var><br/>
</td>
<td align="right">22,940 to 24,999<br/>
</td>
<td align="center">1.8 percent<br/>
</td>
<td align="right">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">200<br/>
</td>
</tr>
</table><a id="pl.116.34"></a><var>116.34</var>The payment made to a claimant is the amount of the state refund calculated under <br/>
<a id="pl.116.35"></a><var>116.35</var>this subdivision. No payment is allowed if the claimant's household income is $25,000 <br/>
<a id="pl.116.36"></a><var>116.36</var>or more.<br/>
<a id="pl.117.1"></a><var>117.1</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on rent paid in <br/>
<a id="pl.117.2"></a><var>117.2</var>2010 and following years.<br/>
<br/>
<a id="bill.7.22.0"></a><a id="pl.117.3"></a><var>117.3</var>    Sec. 22. Minnesota Statutes 2010, section 290A.04, subdivision 4, is amended to read:<br/>
<a id="pl.117.4"></a><var>117.4</var>    Subd. 4. <b>Inflation adjustment.</b> (a) Beginning for property tax refunds payable in <br/>
<a id="pl.117.5"></a><var>117.5</var>calendar year 2002, the commissioner shall annually adjust the dollar amounts of the <br/>
<a id="pl.117.6"></a><var>117.6</var>income thresholds and the maximum refunds under subdivisions subdivision 2 and 2a for <br/>
<a id="pl.117.7"></a><var>117.7</var>inflation. The commissioner shall make the inflation adjustments in accordance with <br/>
<a id="pl.117.8"></a><var>117.8</var>section 1(f) of the Internal Revenue Code, except that for purposes of this subdivision the <br/>
<a id="pl.117.9"></a><var>117.9</var>percentage increase shall be determined from the year ending on June 30, 2000 2011, to <br/>
<a id="pl.117.10"></a><var>117.10</var>the year ending on June 30 of the year preceding that in which the refund is payable.<br/>
<a id="pl.117.11"></a><var>117.11</var>(b) The commissioner shall use the appropriate percentage increase to annually <br/>
<a id="pl.117.12"></a><var>117.12</var>adjust the income thresholds and maximum refunds under subdivisions subdivision <br/>
<a id="pl.117.13"></a><var>117.13</var>2 and 2a for inflation without regard to whether or not the income tax brackets are <br/>
<a id="pl.117.14"></a><var>117.14</var>adjusted for inflation in that year. The commissioner shall round the thresholds and the <br/>
<a id="pl.117.15"></a><var>117.15</var>maximum amounts, as adjusted to the nearest $10 amount. If the amount ends in $5, the <br/>
<a id="pl.117.16"></a><var>117.16</var>commissioner shall round it up to the next $10 amount.<br/>
<a id="pl.117.17"></a><var>117.17</var>(c) The commissioner shall annually announce the adjusted refund schedule at the <br/>
<a id="pl.117.18"></a><var>117.18</var>same time provided under section 
         <statute_ref>290.06</statute_ref>. The determination of the commissioner under <br/>
<a id="pl.117.19"></a><var>117.19</var>this subdivision is not a rule under the Administrative Procedure Act.<br/>
<a id="pl.117.20"></a><var>117.20</var><b>EFFECTIVE DATE.</b>The changes to this section relating to refunds under <br/>
<a id="pl.117.21"></a><var>117.21</var>subdivision 2 are effective beginning for refunds based on taxes payable in 2013 and <br/>
<a id="pl.117.22"></a><var>117.22</var>the changes relating to refunds under subdivision 2a are effective beginning for refunds <br/>
<a id="pl.117.23"></a><var>117.23</var>based on rent paid in 2011.<br/>
<br/>
<a id="bill.7.23.0"></a><a id="pl.117.24"></a><var>117.24</var>    Sec. 23. <b>[373.51] ALTERNATIVE PROCESS FOR CONSOLIDATION.</b><br/>
<a id="pl.117.25"></a><var>117.25</var>Notwithstanding the provisions relating to petitions in sections 371.02 and 371.03, <br/>
<a id="pl.117.26"></a><var>117.26</var>two or more counties may begin the process for consolidation by filing with the secretary <br/>
<a id="pl.117.27"></a><var>117.27</var>of state a resolution unanimously adopted by the board of each affected county to seek <br/>
<a id="pl.117.28"></a><var>117.28</var>voter approval for consolidation of the counties following the procedures in chapter 371. <br/>
<br/>
<a id="bill.7.24.0"></a><a id="pl.117.29"></a><var>117.29</var>    Sec. 24. Minnesota Statutes 2010, section 477A.011, is amended by adding a <br/>
<a id="pl.117.30"></a><var>117.30</var>subdivision to read:<br/>
<a id="pl.117.31"></a><var>117.31</var>    Subd. 1c. <b>First class city.</b> "First class city" means a city of the first class as of <br/>
<a id="pl.117.32"></a><var>117.32</var>2009 as defined in section 410.01.<br/>
<a id="pl.118.1"></a><var>118.1</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.118.2"></a><var>118.2</var>2011 and thereafter.<br/>
<br/>
<a id="bill.7.25.0"></a><a id="pl.118.3"></a><var>118.3</var>    Sec. 25. Minnesota Statutes 2010, section 477A.011, subdivision 20, is amended to <br/>
<a id="pl.118.4"></a><var>118.4</var>read:<br/>
<a id="pl.118.5"></a><var>118.5</var>    Subd. 20. <b>City net tax capacity.</b> "City net tax capacity" means (1) the net tax <br/>
<a id="pl.118.6"></a><var>118.6</var>capacity computed using the net tax capacity rates in section 
         <statute_ref>273.13</statute_ref> for taxes payable <br/>
<a id="pl.118.7"></a><var>118.7</var>in the year of the aid distribution, and the market values, after the exclusion in section <br/>
<a id="pl.118.8"></a><var>118.8</var>273.13, subdivision 35, for taxes payable in the year prior to the aid distribution plus (2) <br/>
<a id="pl.118.9"></a><var>118.9</var>a city's fiscal disparities distribution tax capacity under section 
         <statute_ref>276A.06, subdivision 2</statute_ref>, <br/>
<a id="pl.118.10"></a><var>118.10</var>paragraph (b), or 
         <statute_ref>473F.08, subdivision 2</statute_ref>, paragraph (b), for taxes payable in the year prior <br/>
<a id="pl.118.11"></a><var>118.11</var>to that for which aids are being calculated. The market value utilized in computing city <br/>
<a id="pl.118.12"></a><var>118.12</var>net tax capacity shall be reduced by the sum of (1) a city's market value of commercial <br/>
<a id="pl.118.13"></a><var>118.13</var>industrial property as defined in section 
         <statute_ref>276A.01, subdivision 3</statute_ref>, or 
         <statute_ref>473F.02, subdivision 3</statute_ref>, <br/>
<a id="pl.118.14"></a><var>118.14</var>multiplied by the ratio determined pursuant to section 
         <statute_ref>276A.06, subdivision 2</statute_ref>, paragraph <br/>
<a id="pl.118.15"></a><var>118.15</var>(a), or 
         <statute_ref>473F.08, subdivision 2</statute_ref>, paragraph (a), (2) the market value of the captured value <br/>
<a id="pl.118.16"></a><var>118.16</var>of tax increment financing districts as defined in section 
         <statute_ref>469.177, subdivision 2</statute_ref>, and (3) <br/>
<a id="pl.118.17"></a><var>118.17</var>the market value of transmission lines deducted from a city's total net tax capacity under <br/>
<a id="pl.118.18"></a><var>118.18</var>section 
         <statute_ref>273.425</statute_ref>. The city net tax capacity will be computed using equalized market values. <br/>
<a id="pl.118.19"></a><var>118.19</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.118.20"></a><var>118.20</var>2013 and thereafter.<br/>
<br/>
<a id="bill.7.26.0"></a><a id="pl.118.21"></a><var>118.21</var>    Sec. 26. Minnesota Statutes 2010, section 477A.0124, is amended by adding a <br/>
<a id="pl.118.22"></a><var>118.22</var>subdivision to read:<br/>
<a id="pl.118.23"></a><var>118.23</var>    Subd. 6. <b>Aid payments in 2011 and 2012.</b> Notwithstanding total aids calculated or <br/>
<a id="pl.118.24"></a><var>118.24</var>certified for 2011 under subdivisions 3, 4, and 5, for 2011 and 2012, each county shall <br/>
<a id="pl.118.25"></a><var>118.25</var>receive an aid distribution under this section equal to the lesser of (1) the total amount of <br/>
<a id="pl.118.26"></a><var>118.26</var>aid it received under this section in 2010 after the reductions under sections 477A.0133 <br/>
<a id="pl.118.27"></a><var>118.27</var>and 477A.0134, or (2) the total amount the county is certified to receive in 2011 under <br/>
<a id="pl.118.28"></a><var>118.28</var>subdivisions 3 to 5.<br/>
<a id="pl.118.29"></a><var>118.29</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.118.30"></a><var>118.30</var>2011 and 2012.<br/>
<br/>
<a id="bill.7.27.0"></a><a id="pl.118.31"></a><var>118.31</var>    Sec. 27. Minnesota Statutes 2010, section 477A.013, subdivision 8, is amended to read:<br/>
<a id="pl.119.1"></a><var>119.1</var>    Subd. 8. <b>City formula aid.</b>  The formula aid for a city is equal to the sum of (1) its <br/>
<a id="pl.119.2"></a><var>119.2</var>city jobs base, (2) its small city aid base, and (3) the need increase percentage multiplied <br/>
<a id="pl.119.3"></a><var>119.3</var>by the average of its unmet need for the most recently available two years.<br/>
<a id="pl.119.4"></a><var>119.4</var>No city may have a formula aid amount less than zero. The need increase percentage must <br/>
<a id="pl.119.5"></a><var>119.5</var>be the same for all cities. For first class cities, the formula aid is 25 percent of its base <br/>
<a id="pl.119.6"></a><var>119.6</var>aid as defined in subdivision 11, paragraph (a), for aids payable in 2013 and zero for aids <br/>
<a id="pl.119.7"></a><var>119.7</var>payable in 2014 and thereafter.<br/>
<a id="pl.119.8"></a><var>119.8</var>    The applicable need increase percentage must be calculated by the Department of <br/>
<a id="pl.119.9"></a><var>119.9</var>Revenue so that the total of the aid under subdivision 9 equals the total amount available <br/>
<a id="pl.119.10"></a><var>119.10</var>for aid under section 
         <statute_ref>477A.03</statute_ref>. Data used in calculating aids to cities under sections <br/>
<statute_ref><a id="pl.119.11"></a><var>119.11</var>477A.011
         </statute_ref> to 
         <statute_ref>477A.013</statute_ref> shall be the most recently available data as of January 1 in the <br/>
<a id="pl.119.12"></a><var>119.12</var>year in which the aid is calculated except that the data used to compute "net levy" in <br/>
<a id="pl.119.13"></a><var>119.13</var>subdivision 9 is the data most recently available at the time of the aid computation.<br/>
<a id="pl.119.14"></a><var>119.14</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.119.15"></a><var>119.15</var>2013 and thereafter.<br/>
<br/>
<a id="bill.7.28.0"></a><a id="pl.119.16"></a><var>119.16</var>    Sec. 28. Minnesota Statutes 2010, section 477A.013, subdivision 9, is amended to read:<br/>
<a id="pl.119.17"></a><var>119.17</var>    Subd. 9. <b>City aid distribution.</b> (a) In calendar year 2009 and thereafter, each <br/>
<a id="pl.119.18"></a><var>119.18</var>city shall receive an aid distribution equal to the sum of (1) the city formula aid under <br/>
<a id="pl.119.19"></a><var>119.19</var>subdivision 8, and (2) its city aid base.<br/>
<a id="pl.119.20"></a><var>119.20</var>    (b) For aids payable in 2011 2013 only, the total aid in the previous year for any <br/>
<a id="pl.119.21"></a><var>119.21</var>city shall mean the amount of aid it was certified to receive for aids payable in 2010 <br/>
<a id="pl.119.22"></a><var>119.22</var>2012 under this section minus the amount of its aid reduction under section 
<statute_ref>477A.0134</statute_ref> <br/>
<a id="pl.119.23"></a><var>119.23</var>subdivision 11. For aids payable in 2012 2014 and thereafter, the total aid in the previous <br/>
<a id="pl.119.24"></a><var>119.24</var>year for any city means the amount of aid it was certified to receive under this section in <br/>
<a id="pl.119.25"></a><var>119.25</var>the previous payable year.<br/>
<a id="pl.119.26"></a><var>119.26</var>    (c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed <br/>
<a id="pl.119.27"></a><var>119.27</var>the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution <br/>
<a id="pl.119.28"></a><var>119.28</var>plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total <br/>
<a id="pl.119.29"></a><var>119.29</var>aid for any city with a population of 2,500 or more may not be less than its total aid under <br/>
<a id="pl.119.30"></a><var>119.30</var>this section in the previous year minus the lesser of $10 multiplied by its population, or ten <br/>
<a id="pl.119.31"></a><var>119.31</var>percent of its net levy in the year prior to the aid distribution.<br/>
<a id="pl.119.32"></a><var>119.32</var>    (d) For aids payable in 2010 and thereafter, the total aid for a city with a population <br/>
<a id="pl.119.33"></a><var>119.33</var>less than 2,500 must not be less than the amount it was certified to receive in the <br/>
<a id="pl.119.34"></a><var>119.34</var>previous year minus the lesser of $10 multiplied by its population, or five percent of its <br/>
<a id="pl.119.35"></a><var>119.35</var>2003 certified aid amount. For aids payable in 2009 only, the total aid for a city with a <br/>
<a id="pl.120.1"></a><var>120.1</var>population less than 2,500 must not be less than what it received under this section in the <br/>
<a id="pl.120.2"></a><var>120.2</var>previous year unless its total aid in calendar year 2008 was aid under section 
         <statute_ref>477A.011</statute_ref>, <br/>
<a id="pl.120.3"></a><var>120.3</var>subdivision 36, paragraph (s), in which case its minimum aid is zero.<br/>
<a id="pl.120.4"></a><var>120.4</var>    (e) A city's aid loss under this section may not exceed $300,000 in any year in <br/>
<a id="pl.120.5"></a><var>120.5</var>which the total city aid appropriation under section 
         <statute_ref>477A.03, subdivision 2a</statute_ref>, is equal or <br/>
<a id="pl.120.6"></a><var>120.6</var>greater than the appropriation under that subdivision in the previous year, unless the <br/>
<a id="pl.120.7"></a><var>120.7</var>city has an adjustment in its city net tax capacity under the process described in section <br/>
<statute_ref><a id="pl.120.8"></a><var>120.8</var>469.174, subdivision 28
         </statute_ref>.<br/>
<a id="pl.120.9"></a><var>120.9</var>    (f) If a city's net tax capacity used in calculating aid under this section has decreased <br/>
<a id="pl.120.10"></a><var>120.10</var>in any year by more than 25 percent from its net tax capacity in the previous year due to <br/>
<a id="pl.120.11"></a><var>120.11</var>property becoming tax-exempt Indian land, the city's maximum allowed aid increase <br/>
<a id="pl.120.12"></a><var>120.12</var>under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the <br/>
<a id="pl.120.13"></a><var>120.13</var>year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease <br/>
<a id="pl.120.14"></a><var>120.14</var>resulting from the property becoming tax exempt.<br/>
<a id="pl.120.15"></a><var>120.15</var>(g) Notwithstanding paragraphs (a) to (f), the total aid for a first class city is its <br/>
<a id="pl.120.16"></a><var>120.16</var>formula aid under subdivision 8.<br/>
<a id="pl.120.17"></a><var>120.17</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.120.18"></a><var>120.18</var>2013 and thereafter.<br/>
<br/>
<a id="bill.7.29.0"></a><a id="pl.120.19"></a><var>120.19</var>    Sec. 29. Minnesota Statutes 2010, section 477A.013, is amended by adding a <br/>
<a id="pl.120.20"></a><var>120.20</var>subdivision to read:<br/>
<a id="pl.120.21"></a><var>120.21</var>    Subd. 11. <b>Aid payments in 2011 and 2012.</b> (a) For purposes of this subdivision, <br/>
<a id="pl.120.22"></a><var>120.22</var>"base aid" means the lesser of (1) the total amount of aid it received under this section <br/>
<a id="pl.120.23"></a><var>120.23</var>in 2010, after the reductions under sections 477A.0133 and 477A.0134 and reduced by <br/>
<a id="pl.120.24"></a><var>120.24</var>the amount of payments under section 477A.011, subdivision 36, paragraphs (y) and (z), <br/>
<a id="pl.120.25"></a><var>120.25</var>or (2) the amount it was certified to receive in 2011 under subdivision 9. In 2011 only, <br/>
<a id="pl.120.26"></a><var>120.26</var>a city that qualifies for the aid base adjustment under section 477A.011, subdivision 36, <br/>
<a id="pl.120.27"></a><var>120.27</var>paragraph (aa), shall receive the amount that it was certified to receive in 2011. In 2012, <br/>
<a id="pl.120.28"></a><var>120.28</var>a city that qualifies for the aid base adjustment under section 477A.011, subdivision 36, <br/>
<a id="pl.120.29"></a><var>120.29</var>paragraph (aa), shall receive the amount that it was certified to receive in 2011, minus the <br/>
<a id="pl.120.30"></a><var>120.30</var>aid base adjustment provided under section 477A.011, subdivision 36, paragraph (aa).<br/>
<a id="pl.120.31"></a><var>120.31</var>(b) Notwithstanding aids calculated or certified for aids payable in 2011 under <br/>
<a id="pl.120.32"></a><var>120.32</var>subdivision 9, in 2011 each city shall receive an aid distribution under this section as <br/>
<a id="pl.120.33"></a><var>120.33</var>follows:<br/>
<a id="pl.120.34"></a><var>120.34</var>(1) for a first class city, 75 percent of its base aid as defined in paragraph (a); and<br/>
<a id="pl.120.35"></a><var>120.35</var>(2) for any other city, its base aid as determined under paragraph (a).<br/>
<a id="pl.121.1"></a><var>121.1</var>(c) Notwithstanding aids calculated or certified for aids payable in 2012 under <br/>
<a id="pl.121.2"></a><var>121.2</var>subdivision 9, in 2012 each city shall receive an aid distribution under this section as <br/>
<a id="pl.121.3"></a><var>121.3</var>follows:<br/>
<a id="pl.121.4"></a><var>121.4</var>(1) for a first class city, 50 percent of its base aid as defined in paragraph (a); and<br/>
<a id="pl.121.5"></a><var>121.5</var>(2) for any other city, its base aid as defined under paragraph (a).<br/>
<a id="pl.121.6"></a><var>121.6</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar years <br/>
<a id="pl.121.7"></a><var>121.7</var>2011 and 2012.<br/>
<br/>
<a id="bill.7.30.0"></a><a id="pl.121.8"></a><var>121.8</var>    Sec. 30. Minnesota Statutes 2010, section 477A.03, is amended to read:<br/>
<a id="pl.121.9"></a><var>121.9</var><b>477A.03 APPROPRIATION.</b><br/>
<a id="pl.121.10"></a><var>121.10</var>    Subd. 2. <b>Annual appropriation.</b> A sum sufficient to discharge the duties imposed <br/>
<a id="pl.121.11"></a><var>121.11</var>by sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.014</statute_ref> is annually appropriated from the general fund to the <br/>
<a id="pl.121.12"></a><var>121.12</var>commissioner of revenue.<br/>
<a id="pl.121.13"></a><var>121.13</var>    Subd. 2a. <b>Cities.</b> For aids payable in 2013 only, the total aid paid under section <br/>
<a id="pl.121.14"></a><var>121.14</var>477A.013, subdivision 9, is $318,774,184. For aids payable in 2011 2014 and thereafter, <br/>
<a id="pl.121.15"></a><var>121.15</var>the total aid paid under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is $527,100,646 $283,292,875.<br/>
<a id="pl.121.16"></a><var>121.16</var>    Subd. 2b. <b>Counties.</b> (a) For aids payable in 2011 2013 and thereafter, the total aid <br/>
<a id="pl.121.17"></a><var>121.17</var>payable under section 
         <statute_ref>477A.0124, subdivision 3</statute_ref>, is $96,395,000 $78,218,000. Each <br/>
<a id="pl.121.18"></a><var>121.18</var>calendar year, $500,000 shall be retained by the commissioner of revenue to make <br/>
<a id="pl.121.19"></a><var>121.19</var>reimbursements to the commissioner of management and budget for payments made <br/>
<a id="pl.121.20"></a><var>121.20</var>under section 
         <statute_ref>611.27</statute_ref>. For calendar year 2004, the amount shall be in addition to the <br/>
<a id="pl.121.21"></a><var>121.21</var>payments authorized under section 
<statute_ref>477A.0124, subdivision 1</statute_ref>. For calendar year 2005 <br/>
<a id="pl.121.22"></a><var>121.22</var>and subsequent years, The amount shall be deducted from the appropriation under <br/>
<a id="pl.121.23"></a><var>121.23</var>this paragraph. The reimbursements shall be to defray the additional costs associated <br/>
<a id="pl.121.24"></a><var>121.24</var>with court-ordered counsel under section 
         <statute_ref>611.27</statute_ref>. Any retained amounts not used for <br/>
<a id="pl.121.25"></a><var>121.25</var>reimbursement in a year shall be included in the next distribution of county need aid <br/>
<a id="pl.121.26"></a><var>121.26</var>that is certified to the county auditors for the purpose of property tax reduction for the <br/>
<a id="pl.121.27"></a><var>121.27</var>next taxes payable year.<br/>
<a id="pl.121.28"></a><var>121.28</var>    (b) For aids payable in 2011 2013 and thereafter, the total aid under section <br/>
<statute_ref><a id="pl.121.29"></a><var>121.29</var>477A.0124, subdivision 4
         </statute_ref>, is $101,309,575 $83,133,000. The commissioner of <br/>
<a id="pl.121.30"></a><var>121.30</var>management and budget shall bill the commissioner of revenue for the cost of preparation <br/>
<a id="pl.121.31"></a><var>121.31</var>of local impact notes as required by section 
         <statute_ref>3.987</statute_ref>, not to exceed $207,000 in fiscal year <br/>
<a id="pl.121.32"></a><var>121.32</var>2004 and thereafter. The commissioner of education shall bill the commissioner of <br/>
<a id="pl.121.33"></a><var>121.33</var>revenue for the cost of preparation of local impact notes for school districts as required by <br/>
<a id="pl.121.34"></a><var>121.34</var>section 
         <statute_ref>3.987</statute_ref>, not to exceed $7,000 in fiscal year 2004 and thereafter. The commissioner <br/>
<a id="pl.122.1"></a><var>122.1</var>of revenue shall deduct the amounts billed under this paragraph from the appropriation <br/>
<a id="pl.122.2"></a><var>122.2</var>under this paragraph. The amounts deducted are appropriated to the commissioner of <br/>
<a id="pl.122.3"></a><var>122.3</var>management and budget and the commissioner of education for the preparation of local <br/>
<a id="pl.122.4"></a><var>122.4</var>impact notes.<br/>
<a id="pl.122.5"></a><var>122.5</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.122.6"></a><var>122.6</var>2012 and thereafter.<br/>
<br/>
<a id="bill.7.31.0"></a><a id="pl.122.7"></a><var>122.7</var>    Sec. 31. Minnesota Statutes 2010, section 477A.11, subdivision 1, is amended to read:<br/>
<a id="pl.122.8"></a><var>122.8</var>    Subdivision 1. <b>Terms.</b> For the purpose of sections 
         <statute_ref>477A.11</statute_ref> to 
         <statute_ref>477A.145</statute_ref> 477A.14, <br/>
<a id="pl.122.9"></a><var>122.9</var>the terms defined in this section have the meanings given them. <br/>
<a id="pl.122.10"></a><var>122.10</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.122.11"></a><var>122.11</var>2011 and thereafter.<br/>
<br/>
<a id="bill.7.32.0"></a><a id="pl.122.12"></a><var>122.12</var>    Sec. 32. Minnesota Statutes 2010, section 477A.12, subdivision 1, is amended to read:<br/>
<a id="pl.122.13"></a><var>122.13</var>    Subdivision 1. <b>Types of land; payments.</b> (a) As an offset for expenses incurred <br/>
<a id="pl.122.14"></a><var>122.14</var>by counties and towns in support of natural resources lands, the following amounts are <br/>
<a id="pl.122.15"></a><var>122.15</var>annually appropriated to the commissioner of natural resources from the general fund for <br/>
<a id="pl.122.16"></a><var>122.16</var>transfer to the commissioner of revenue. The commissioner of revenue shall pay the <br/>
<a id="pl.122.17"></a><var>122.17</var>transferred funds to counties as required by sections 
         <statute_ref>477A.11</statute_ref> to 
         <statute_ref>477A.145</statute_ref> 477A.14. <br/>
<a id="pl.122.18"></a><var>122.18</var>The amounts are:<br/>
<a id="pl.122.19"></a><var>122.19</var>(1) for acquired natural resources land, $3, as adjusted for inflation under section <br/>
<a id="pl.122.20"></a><var>122.20</var><statute_ref>477A.145</statute_ref>, $4.517 multiplied by the total number of acres of acquired natural resources <br/>
<a id="pl.122.21"></a><var>122.21</var>land or, at the county's option three-fourths of one 0.66 percent of the appraised value of <br/>
<a id="pl.122.22"></a><var>122.22</var>all acquired natural resources land in the county, whichever is greater;<br/>
<a id="pl.122.23"></a><var>122.23</var>(2) 75 cents, as adjusted for inflation under section 
<statute_ref>477A.145</statute_ref>, $1.129 multiplied by <br/>
<a id="pl.122.24"></a><var>122.24</var>the number of acres of county-administered other natural resources land;<br/>
<a id="pl.122.25"></a><var>122.25</var>(3) 75 cents, as adjusted for inflation under section 
<statute_ref>477A.145</statute_ref>, $1.129 multiplied by <br/>
<a id="pl.122.26"></a><var>122.26</var>the total number of acres of land utilization project land; and<br/>
<a id="pl.122.27"></a><var>122.27</var>(4) 37.5 cents, as adjusted for inflation under section 
<statute_ref>477A.145</statute_ref>, 56.5 cents multiplied <br/>
<a id="pl.122.28"></a><var>122.28</var>by the number of acres of commissioner-administered other natural resources land located <br/>
<a id="pl.122.29"></a><var>122.29</var>in each county as of July 1 of each year prior to the payment year.<br/>
<a id="pl.122.30"></a><var>122.30</var>(b) The amount determined under paragraph (a), clause (1), is payable for land <br/>
<a id="pl.122.31"></a><var>122.31</var>that is acquired from a private owner and owned by the Department of Transportation <br/>
<a id="pl.122.32"></a><var>122.32</var>for the purpose of replacing wetland losses caused by transportation projects, but only <br/>
<a id="pl.123.1"></a><var>123.1</var>if the county contains more than 500 acres of such land at the time the certification is <br/>
<a id="pl.123.2"></a><var>123.2</var>made under subdivision 2.<br/>
<a id="pl.123.3"></a><var>123.3</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.123.4"></a><var>123.4</var>2011 and thereafter.<br/>
<br/>
<a id="bill.7.33.0"></a><a id="pl.123.5"></a><var>123.5</var>    Sec. 33. Minnesota Statutes 2010, section 477A.14, subdivision 1, is amended to read:<br/>
<a id="pl.123.6"></a><var>123.6</var>    Subdivision 1. <b>General distribution.</b> Except as provided in subdivision 2 or in <br/>
<a id="pl.123.7"></a><var>123.7</var>section 
         <statute_ref>97A.061, subdivision 5</statute_ref>, 40 percent of the total payment to the county shall be <br/>
<a id="pl.123.8"></a><var>123.8</var>deposited in the county general revenue fund to be used to provide property tax levy <br/>
<a id="pl.123.9"></a><var>123.9</var>reduction. The remainder shall be distributed by the county in the following priority:<br/>
<a id="pl.123.10"></a><var>123.10</var>(a) 37.5 cents, as adjusted for inflation under section 
<statute_ref>477A.145</statute_ref>, 56.5 cents for <br/>
<a id="pl.123.11"></a><var>123.11</var>each acre of county-administered other natural resources land shall be deposited in a <br/>
<a id="pl.123.12"></a><var>123.12</var>resource development fund to be created within the county treasury for use in resource <br/>
<a id="pl.123.13"></a><var>123.13</var>development, forest management, game and fish habitat improvement, and recreational <br/>
<a id="pl.123.14"></a><var>123.14</var>development and maintenance of county-administered other natural resources land. Any <br/>
<a id="pl.123.15"></a><var>123.15</var>county receiving less than $5,000 annually for the resource development fund may elect to <br/>
<a id="pl.123.16"></a><var>123.16</var>deposit that amount in the county general revenue fund;<br/>
<a id="pl.123.17"></a><var>123.17</var>(b) From the funds remaining, within 30 days of receipt of the payment to the <br/>
<a id="pl.123.18"></a><var>123.18</var>county, the county treasurer shall pay each organized township 30 cents, as adjusted for <br/>
<a id="pl.123.19"></a><var>123.19</var>inflation under section 
<statute_ref>477A.145</statute_ref>, 45.2 cents for each acre of acquired natural resources <br/>
<a id="pl.123.20"></a><var>123.20</var>land and each acre of land described in section 
         <statute_ref>477A.12, subdivision 1</statute_ref>, paragraph (b), and <br/>
<a id="pl.123.21"></a><var>123.21</var>7.5 cents, as adjusted for inflation under section 
<statute_ref>477A.145</statute_ref>, 11.3 cents for each acre of <br/>
<a id="pl.123.22"></a><var>123.22</var>other natural resources land and each acre of land utilization project land located within its <br/>
<a id="pl.123.23"></a><var>123.23</var>boundaries. Payments for natural resources lands not located in an organized township <br/>
<a id="pl.123.24"></a><var>123.24</var>shall be deposited in the county general revenue fund. Payments to counties and townships <br/>
<a id="pl.123.25"></a><var>123.25</var>pursuant to this paragraph shall be used to provide property tax levy reduction, except <br/>
<a id="pl.123.26"></a><var>123.26</var>that of the payments for natural resources lands not located in an organized township, the <br/>
<a id="pl.123.27"></a><var>123.27</var>county may allocate the amount determined to be necessary for maintenance of roads in <br/>
<a id="pl.123.28"></a><var>123.28</var>unorganized townships. Provided that, if the total payment to the county pursuant to <br/>
<a id="pl.123.29"></a><var>123.29</var>section 
         <statute_ref>477A.12</statute_ref> is not sufficient to fully fund the distribution provided for in this clause, <br/>
<a id="pl.123.30"></a><var>123.30</var>the amount available shall be distributed to each township and the county general revenue <br/>
<a id="pl.123.31"></a><var>123.31</var>fund on a pro rata basis; and<br/>
<a id="pl.123.32"></a><var>123.32</var>(c) Any remaining funds shall be deposited in the county general revenue fund. <br/>
<a id="pl.123.33"></a><var>123.33</var>Provided that, if the distribution to the county general revenue fund exceeds $35,000, the <br/>
<a id="pl.123.34"></a><var>123.34</var>excess shall be used to provide property tax levy reduction.<br/>
<a id="pl.124.1"></a><var>124.1</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.124.2"></a><var>124.2</var>2011 and thereafter.<br/>
<br/>
<a id="bill.7.34.0"></a><a id="pl.124.3"></a><var>124.3</var>    Sec. 34. Minnesota Statutes 2010, section 477A.17, is amended to read:<br/>
<a id="pl.124.4"></a><var>124.4</var><b>477A.17 LAKE VERMILION STATE PARK AND SOUDAN </b><br/>
<a id="pl.124.5"></a><var>124.5</var><b>UNDERGROUND MINE STATE PARK; ANNUAL PAYMENTS.</b><br/>
<a id="pl.124.6"></a><var>124.6</var>    (a) Beginning in fiscal year 2012, in lieu of the payment amount provided under <br/>
<a id="pl.124.7"></a><var>124.7</var>section 
         <statute_ref>477A.12, subdivision </statute_ref>1, clause (1), the county shall receive an annual payment for <br/>
<a id="pl.124.8"></a><var>124.8</var>land acquired for Lake Vermilion State Park, established in section 
         <statute_ref>85.012, subdivision <br/>
</statute_ref><a id="pl.124.9"></a><var>124.9</var>38a, and land within the boundary of Soudan Underground Mine State Park, established <br/>
<a id="pl.124.10"></a><var>124.10</var>in section 
         <statute_ref>85.012, subdivision 53a</statute_ref>, equal to 1.5 1.32 percent of the appraised value of <br/>
<a id="pl.124.11"></a><var>124.11</var>the land.<br/>
<a id="pl.124.12"></a><var>124.12</var>    (b) For the purposes of this section, the appraised value of the land acquired for <br/>
<a id="pl.124.13"></a><var>124.13</var>Lake Vermilion State Park for the first five years after acquisition shall be the purchase <br/>
<a id="pl.124.14"></a><var>124.14</var>price of the land, plus the value of any portion of the land that is acquired by donation. <br/>
<a id="pl.124.15"></a><var>124.15</var>The appraised value must be redetermined by the county assessor every five years after <br/>
<a id="pl.124.16"></a><var>124.16</var>the land is acquired.<br/>
<a id="pl.124.17"></a><var>124.17</var>    (c) The annual payments under this section shall be distributed to the taxing <br/>
<a id="pl.124.18"></a><var>124.18</var>jurisdictions containing the property as follows: one-third to the school districts; one-third <br/>
<a id="pl.124.19"></a><var>124.19</var>to the town; and one-third to the county. The payment to school districts is not a county <br/>
<a id="pl.124.20"></a><var>124.20</var>apportionment under section 
         <statute_ref>127A.34</statute_ref> and is not subject to aid recapture. Each of those <br/>
<a id="pl.124.21"></a><var>124.21</var>taxing jurisdictions may use the payments for their general purposes.<br/>
<a id="pl.124.22"></a><var>124.22</var>    (d) Except as provided in this section, the payments shall be made as provided <br/>
<a id="pl.124.23"></a><var>124.23</var>in sections 
         <statute_ref>477A.11</statute_ref> to 
         <statute_ref>477A.13</statute_ref>.<br/>
<a id="pl.124.24"></a><var>124.24</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.124.25"></a><var>124.25</var>2011 and thereafter.<br/>
<br/>
<a id="bill.7.35.0"></a><a id="pl.124.26"></a><var>124.26</var>    Sec. 35. <b>ADMINISTRATION OF PROPERTY TAX REFUND CLAIMS; 2011.</b><br/>
<a id="pl.124.27"></a><var>124.27</var>In administering this bill for claims for refunds submitted using 19 percent of gross <br/>
<a id="pl.124.28"></a><var>124.28</var>rent as rent constituting property taxes under prior law, the commissioner shall recalculate <br/>
<a id="pl.124.29"></a><var>124.29</var>and pay the refund amounts using 15 percent of gross rent, subject to the reduced <br/>
<a id="pl.124.30"></a><var>124.30</var>maximum income limits, maximum refunds, and increased copayment percentages in this <br/>
<a id="pl.124.31"></a><var>124.31</var>bill. The commissioner shall notify the claimant that the recalculation was mandated by <br/>
<a id="pl.124.32"></a><var>124.32</var>action of the 2011 Legislature.<br/>
<a id="pl.124.33"></a><var>124.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.36.0"></a><a id="pl.125.1"></a><var>125.1</var>    Sec. 36. <b>CREDIT REDUCTIONS AND LIMITATION; COUNTIES AND </b><br/>
<a id="pl.125.2"></a><var>125.2</var><b>CITIES.</b><br/>
<a id="pl.125.3"></a><var>125.3</var>    In 2011, the market value credit reimbursement payment to each county and city <br/>
<a id="pl.125.4"></a><var>125.4</var>authorized under Minnesota Statutes, section 273.1384, subdivision 4, may not exceed the <br/>
<a id="pl.125.5"></a><var>125.5</var>reimbursement payment received by the county or city for taxes payable in 2010. <br/>
<a id="pl.125.6"></a><var>125.6</var><b>EFFECTIVE DATE.</b>This section is effective for credit reimbursements in 2011.<br/>
<br/>
<a id="bill.7.37.0"></a><a id="pl.125.7"></a><var>125.7</var>    Sec. 37. <b>PROPERTY TAX STATEMENT FOR TAXES PAYABLE IN 2012 ONLY.</b><br/>
<a id="pl.125.8"></a><var>125.8</var>For the purposes of the property tax statements required under Minnesota Statutes, <br/>
<a id="pl.125.9"></a><var>125.9</var>section 276.04, subdivision 2, for taxes payable in 2012 only, the gross tax amount shown <br/>
<a id="pl.125.10"></a><var>125.10</var>for the previous year is the gross tax minus the residential homestead market value credit.<br/>
<a id="pl.125.11"></a><var>125.11</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 only.<br/>
<br/>
<a id="bill.7.38.0"></a><a id="pl.125.12"></a><var>125.12</var>    Sec. 38. <b>REPORT ON PAYMENT IN LIEU OF TAXES FOR STATE NATURAL </b><br/>
<a id="pl.125.13"></a><var>125.13</var><b>RESOURCE LANDS.</b><br/>
<a id="pl.125.14"></a><var>125.14</var>By December 1, 2011, the commissioner of natural resources, after consultation with <br/>
<a id="pl.125.15"></a><var>125.15</var>the commissioners of revenue and management and budget, and stakeholders, including <br/>
<a id="pl.125.16"></a><var>125.16</var>representatives from affected local units of government and other interested parties, shall <br/>
<a id="pl.125.17"></a><var>125.17</var>report to the chairs and ranking minority caucus members of the senate and house of <br/>
<a id="pl.125.18"></a><var>125.18</var>representatives natural resources and tax policy and finance committees with recommended <br/>
<a id="pl.125.19"></a><var>125.19</var>changes to payment in lieu of taxes for natural resource lands under Minnesota Statutes, <br/>
<a id="pl.125.20"></a><var>125.20</var>sections 97A.061 and 477A.11 to 477A.145. The report shall include an analysis of the <br/>
<a id="pl.125.21"></a><var>125.21</var>current payment and distribution system, and any recommended changes to:<br/>
<a id="pl.125.22"></a><var>125.22</var>(1) the purpose of the payment system and the criteria for payments;<br/>
<a id="pl.125.23"></a><var>125.23</var>(2) the rate of payments for specific classes of natural resource lands;<br/>
<a id="pl.125.24"></a><var>125.24</var>(3) the formula for distribution of the payments to local units of government; and<br/>
<a id="pl.125.25"></a><var>125.25</var>(4) recognition in the amount of the payments of the tax capacity foregone by the <br/>
<a id="pl.125.26"></a><var>125.26</var>local government due to the loss of the future development potential of the land.<br/>
<br/>
<a id="bill.7.39.0"></a><a id="pl.125.27"></a><var>125.27</var>    Sec. 39. <b>COOPERATION AND CONSOLIDATION GRANTS.</b><br/>
<a id="pl.125.28"></a><var>125.28</var>    Subdivision 1. <b>Definition.</b> For the purposes of this section, "local government" <br/>
<a id="pl.125.29"></a><var>125.29</var>means a town, county, or home rule charter or statutory city.<br/>
<a id="pl.125.30"></a><var>125.30</var>    Subd. 2. <b>Grants.</b> The commissioner of administration may make a cooperation and <br/>
<a id="pl.125.31"></a><var>125.31</var>consolidation grant to a local government that is participating with at least one other <br/>
<a id="pl.126.1"></a><var>126.1</var>local government in planning for or implementing provision of services cooperatively or <br/>
<a id="pl.126.2"></a><var>126.2</var>in planning and implementing consolidation of services, functions, or governance. The <br/>
<a id="pl.126.3"></a><var>126.3</var>grants shall be made on a first-come first-served basis. The commissioner shall determine <br/>
<a id="pl.126.4"></a><var>126.4</var>the form and content of the application and grant agreements. At a minimum, an <br/>
<a id="pl.126.5"></a><var>126.5</var>application must contain a resolution adopted by the governing body of each participating <br/>
<a id="pl.126.6"></a><var>126.6</var>local government supporting the cooperation or consolidation effort that identifies the <br/>
<a id="pl.126.7"></a><var>126.7</var>services and functions the local government is considering providing cooperatively with <br/>
<a id="pl.126.8"></a><var>126.8</var>one or more other local governments or that identifies the functions the local governments <br/>
<a id="pl.126.9"></a><var>126.9</var>seek to consolidate. The maximum grant amount is $100,000 per local government.<br/>
<a id="pl.126.10"></a><var>126.10</var>    Subd. 3. <b>Report.</b> The commissioner of administration must report to the governor <br/>
<a id="pl.126.11"></a><var>126.11</var>and legislative committees with jurisdiction over local government governance and local <br/>
<a id="pl.126.12"></a><var>126.12</var>government taxes and finance on the cooperation and consolidation grants made and <br/>
<a id="pl.126.13"></a><var>126.13</var>how the money was used, what services and functions have been provided by local <br/>
<a id="pl.126.14"></a><var>126.14</var>governments in cooperation with each other, what programs or governance structures have <br/>
<a id="pl.126.15"></a><var>126.15</var>been proposed for consolidation or consolidated, and what impediments remain that <br/>
<a id="pl.126.16"></a><var>126.16</var>prevent cooperation, consolidation, and service innovation. An interim report is due <br/>
<a id="pl.126.17"></a><var>126.17</var>February 1, 2012, and a final report is due December 15, 2012.<br/>
<a id="pl.126.18"></a><var>126.18</var>    Subd. 4. <b>Appropriation.</b> $1,000,000 in fiscal year 2012, and $2,500,000 in fiscal <br/>
<a id="pl.126.19"></a><var>126.19</var>year 2013, are appropriated from the general fund to the commissioner of administration <br/>
<a id="pl.126.20"></a><var>126.20</var>to make grants to counties as provided in this section.<br/>
<br/>
<a id="bill.7.40.0"></a><a id="pl.126.21"></a><var>126.21</var>    Sec. 40. <b>SUSTAINABLE FOREST INCENTIVE ACT REPEAL; TRANSITION </b><br/>
<a id="pl.126.22"></a><var>126.22</var><b>PAYMENTS; APPROPRIATION.</b><br/>
<a id="pl.126.23"></a><var>126.23</var>(a) Given the limits on state budgetary resources for the coming and future fiscal <br/>
<a id="pl.126.24"></a><var>126.24</var>biennia, the projected cost of the sustainable forest resource management incentive <br/>
<a id="pl.126.25"></a><var>126.25</var>program under Minnesota Statutes, chapter 290C, of over $31,000,000 for the fiscal 2012 <br/>
<a id="pl.126.26"></a><var>126.26</var>and 2013 biennium, and the minimal amount of tangible public benefits of that program, <br/>
<a id="pl.126.27"></a><var>126.27</var>the legislature determines that it is prudent and necessary to repeal that program effective <br/>
<a id="pl.126.28"></a><var>126.28</var>immediately to help balance the state budget for the fiscal 2012 and 2013 biennium and to <br/>
<a id="pl.126.29"></a><var>126.29</var>help provide permanent structural balance to the state budget. The legislature takes notice <br/>
<a id="pl.126.30"></a><var>126.30</var>of and finds that many of the eligibility requirements for participants in the sustainable <br/>
<a id="pl.126.31"></a><var>126.31</var>forest incentive program are in the participants' own financial interests, determined without <br/>
<a id="pl.126.32"></a><var>126.32</var>regard to whether they receive state payments for doing so, and that the participants with <br/>
<a id="pl.126.33"></a><var>126.33</var>the largest amounts of acreage in the program do follow and would likely continue to <br/>
<a id="pl.126.34"></a><var>126.34</var>follow similar or more stringent management practices, regardless of whether the program <br/>
<a id="pl.127.1"></a><var>127.1</var>exists. The legislature further finds that the modification of the sustainable forest incentive <br/>
<a id="pl.127.2"></a><var>127.2</var>program made by Laws 2009, chapter 88, article 10, section 16, increased the per acre <br/>
<a id="pl.127.3"></a><var>127.3</var>payments made to program claimants for fiscal year 2011 by approximately 80 percent, <br/>
<a id="pl.127.4"></a><var>127.4</var>even though it was intended by the 2009 legislature to have little or no effect on the per <br/>
<a id="pl.127.5"></a><var>127.5</var>acre amount of the payments. As a result, this legislative change provided unintended and <br/>
<a id="pl.127.6"></a><var>127.6</var>windfall benefits to almost all the claimants. <br/>
<a id="pl.127.7"></a><var>127.7</var>(b) On or before October 1, 2011, the commissioner of revenue shall pay to:<br/>
<a id="pl.127.8"></a><var>127.8</var>(1) each claimant whose fiscal year 2011 payment was $100,000 under Laws 2010, <br/>
<a id="pl.127.9"></a><var>127.9</var>First Special Session chapter 1, article 13, section 4, subdivision 3, a transition payment <br/>
<a id="pl.127.10"></a><var>127.10</var>equal to one-twelfth for each month, or part of a month, of calendar year 2011 in which the <br/>
<a id="pl.127.11"></a><var>127.11</var>claimant's covenant was in effect, multiplied by $100,000, except that this payment must <br/>
<a id="pl.127.12"></a><var>127.12</var>be reduced, but not below zero, by the increase, if any, in the claimant's 2010 total payment <br/>
<a id="pl.127.13"></a><var>127.13</var>resulting from the increase in the per acre payment rates between 2009 and 2010; and<br/>
<a id="pl.127.14"></a><var>127.14</var>(2) each claimant who was eligible for a payment in calendar year 2011 and who <br/>
<a id="pl.127.15"></a><var>127.15</var>received no payment for calendar year 2010, a transition payment of $3.75 per acre of land <br/>
<a id="pl.127.16"></a><var>127.16</var>enrolled in the program, but not to exceed the amount allowed per claimant to claimants <br/>
<a id="pl.127.17"></a><var>127.17</var>receiving payments under clause (1).<br/>
<a id="pl.127.18"></a><var>127.18</var>Because claimants not covered by clauses (1) or (2) received much larger per acre <br/>
<a id="pl.127.19"></a><var>127.19</var>payments than intended for calendar year 2010, no transition payments are provided <br/>
<a id="pl.127.20"></a><var>127.20</var>to them.<br/>
<a id="pl.127.21"></a><var>127.21</var>For purposes of this paragraph (b), "claimant" refers to each Social Security number <br/>
<a id="pl.127.22"></a><var>127.22</var>or state or federal business tax identification number.<br/>
<a id="pl.127.23"></a><var>127.23</var>(c) An amount sufficient to make the transition payments required under paragraph <br/>
<a id="pl.127.24"></a><var>127.24</var>(b) is appropriated to the commissioner of revenue from the general fund.<br/>
<a id="pl.127.25"></a><var>127.25</var>(d) Land that had been enrolled in the sustainable forest incentive program on May <br/>
<a id="pl.127.26"></a><var>127.26</var>1, 2011, may be reclassified as class 2(c) managed forest land for taxes payable in 2012 <br/>
<a id="pl.127.27"></a><var>127.27</var>if the owner applies to the assessor for the reclassification before September 1, 2011, <br/>
<a id="pl.127.28"></a><var>127.28</var>notwithstanding the application date in Minnesota Statutes, section 273.13, subdivision <br/>
<a id="pl.127.29"></a><var>127.29</var>23, paragraph (d).<br/>
<a id="pl.127.30"></a><var>127.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.41.0"></a><a id="pl.127.31"></a><var>127.31</var>    Sec. 41. <b> REPEALER.</b><br/>
<a id="pl.127.32"></a><var>127.32</var>(a) Minnesota Statutes 2010, sections 10A.322, subdivision 4; and 13.4967, <br/>
<a id="pl.127.33"></a><var>127.33</var>subdivision 2, are repealed.<br/>
<a id="pl.127.34"></a><var>127.34</var>(b) Minnesota Statutes 2010, section 290.06, subdivision 23, is repealed.<br/>
<a id="pl.127.35"></a><var>127.35</var>(c) Minnesota Statutes 2010, sections 275.295; and 477A.145, are repealed.<br/>
<a id="pl.128.1"></a><var>128.1</var>(d) Minnesota Statutes 2010, section 273.1384, subdivisions 1 and 6, are repealed.<br/>
<a id="pl.128.2"></a><var>128.2</var>(e) Minnesota Statutes 2010, sections 13.4967, subdivision 2b; 290C.01; 290C.02; <br/>
<a id="pl.128.3"></a><var>128.3</var>290C.03; 290C.04; 290C.05; 290C.055; 290C.06; 290C.07; 290C.08; 290C.09; 290C.10; <br/>
<a id="pl.128.4"></a><var>128.4</var>290C.11; 290C.12; and 290C.13, are repealed.<br/>
<a id="pl.128.5"></a><var>128.5</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective the day following final enactment. <br/>
<a id="pl.128.6"></a><var>128.6</var>Paragraph (b) is effective for refund claims based on contributions made after June 30, <br/>
<a id="pl.128.7"></a><var>128.7</var>2011. Paragraph (c) is effective for aids payable in 2011 and thereafter. Paragraph (d) <br/>
<a id="pl.128.8"></a><var>128.8</var>is effective for taxes payable in 2012 and thereafter. Paragraph (e) is effective the day <br/>
<a id="pl.128.9"></a><var>128.9</var>following final enactment, and the covenants under the program are void on that date. No <br/>
<a id="pl.128.10"></a><var>128.10</var>later than 90 days after enactment of this section, the commissioner of revenue shall issue <br/>
<a id="pl.128.11"></a><var>128.11</var>a document to each enrollee releasing the land from the covenant as provided in Minnesota <br/>
<a id="pl.128.12"></a><var>128.12</var>Statutes 2010, section 290C.04, paragraph (e), effective the day following final enactment.<br/>
<br/>
<a id="bill.8.0.0"></a>

<a id="bill.8.1.0"></a><a id="pl.128.15"></a><var>128.15</var>    Section 1. Minnesota Statutes 2010, section 272.02, is amended by adding a <br/>
<a id="pl.128.16"></a><var>128.16</var>subdivision to read:<br/>
<a id="pl.128.17"></a><var>128.17</var>    Subd. 95. <b>Property used in the business of mining subject to the net proceeds </b><br/>
<a id="pl.128.18"></a><var>128.18</var><b>tax.</b> The following property used in the business of mining that is subject to the net <br/>
<a id="pl.128.19"></a><var>128.19</var>proceeds tax under section 298.015 is exempt:<br/>
<a id="pl.128.20"></a><var>128.20</var>(1) deposits of ores, metals, and minerals and the lands in which they are contained;<br/>
<a id="pl.128.21"></a><var>128.21</var>(2) all real and personal property used in mining, quarrying, producing, or refining <br/>
<a id="pl.128.22"></a><var>128.22</var>ores, minerals, or metals, including lands occupied by or used in connection with the <br/>
<a id="pl.128.23"></a><var>128.23</var>mining, quarrying, production, or ore refining facilities; and<br/>
<a id="pl.128.24"></a><var>128.24</var>(3) concentrate or direct reduced ore.<br/>
<a id="pl.128.25"></a><var>128.25</var>This exemption applies for each year that a person subject to tax under section <br/>
<a id="pl.128.26"></a><var>128.26</var>298.015 uses the property for mining, quarrying, producing, or refining ores, metals, or <br/>
<a id="pl.128.27"></a><var>128.27</var>minerals.<br/>
<a id="pl.128.28"></a><var>128.28</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.128.29"></a><var>128.29</var>thereafter.<br/>
<br/>
<a id="bill.8.2.0"></a><a id="pl.128.30"></a><var>128.30</var>    Sec. 2. Minnesota Statutes 2010, section 290.05, subdivision 1, is amended to read:<br/>
<a id="pl.128.31"></a><var>128.31</var>    Subdivision 1. <b>Exempt entities.</b> The following corporations, individuals, estates, <br/>
<a id="pl.128.32"></a><var>128.32</var>trusts, and organizations shall be exempted from taxation under this chapter, provided <br/>
<a id="pl.128.33"></a><var>128.33</var>that every such person or corporation claiming exemption under this chapter, in whole <br/>
<a id="pl.129.1"></a><var>129.1</var>or in part, must establish to the satisfaction of the commissioner the taxable status of <br/>
<a id="pl.129.2"></a><var>129.2</var>any income or activity:<br/>
<a id="pl.129.3"></a><var>129.3</var>(a) corporations, individuals, estates, and trusts engaged in the business of mining or <br/>
<a id="pl.129.4"></a><var>129.4</var>producing iron ore and mining, producing, or refining other ores, metals, and minerals, <br/>
<a id="pl.129.5"></a><var>129.5</var>the mining or, production, or refining of which is subject to the occupation tax imposed <br/>
<a id="pl.129.6"></a><var>129.6</var>by section 
         <statute_ref>298.01</statute_ref>; but if any such corporation, individual, estate, or trust engages in any <br/>
<a id="pl.129.7"></a><var>129.7</var>other business or activity or has income from any property not used in such business it <br/>
<a id="pl.129.8"></a><var>129.8</var>shall be subject to this tax computed on the net income from such property or such other <br/>
<a id="pl.129.9"></a><var>129.9</var>business or activity. Royalty shall not be considered as income from the business of <br/>
<a id="pl.129.10"></a><var>129.10</var>mining or producing iron ore within the meaning of this section;<br/>
<a id="pl.129.11"></a><var>129.11</var>(b) the United States of America, the state of Minnesota or any political subdivision <br/>
<a id="pl.129.12"></a><var>129.12</var>of either agencies or instrumentalities, whether engaged in the discharge of governmental <br/>
<a id="pl.129.13"></a><var>129.13</var>or proprietary functions; and<br/>
<a id="pl.129.14"></a><var>129.14</var>(c) any insurance company.<br/>
<a id="pl.129.15"></a><var>129.15</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.129.16"></a><var>129.16</var>December 31, 2010.<br/>
<br/>
<a id="bill.8.3.0"></a><a id="pl.129.17"></a><var>129.17</var>    Sec. 3. Minnesota Statutes 2010, section 298.001, is amended by adding a subdivision <br/>
<a id="pl.129.18"></a><var>129.18</var>to read:<br/>
<a id="pl.129.19"></a><var>129.19</var>    Subd. 10. <b>Refining.</b> "Refining" means and is limited to refining:<br/>
<a id="pl.129.20"></a><var>129.20</var>(1) of ores, metals, or mineral products, the mining, extraction, or quarrying of <br/>
<a id="pl.129.21"></a><var>129.21</var>which were subject to tax under section 298.015; and<br/>
<a id="pl.129.22"></a><var>129.22</var>(2) carried out by the entity, or an affiliated entity, that mined, extracted, or quarried <br/>
<a id="pl.129.23"></a><var>129.23</var>the metal or mineral products.<br/>
<a id="pl.129.24"></a><var>129.24</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.129.25"></a><var>129.25</var>December 31, 2010.<br/>
<br/>
<a id="bill.8.4.0"></a><a id="pl.129.26"></a><var>129.26</var>    Sec. 4. Minnesota Statutes 2010, section 298.01, subdivision 3, is amended to read:<br/>
<a id="pl.129.27"></a><var>129.27</var>    Subd. 3. <b>Occupation tax; other ores.</b>  Every person engaged in the business of <br/>
<a id="pl.129.28"></a><var>129.28</var>mining, refining, or producing ores, metals, or minerals in this state, except iron ore or <br/>
<a id="pl.129.29"></a><var>129.29</var>taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided <br/>
<a id="pl.129.30"></a><var>129.30</var>in this subdivision. For purposes of this subdivision, mining includes the application <br/>
<a id="pl.129.31"></a><var>129.31</var>of hydrometallurgical processes. The tax is determined in the same manner as the tax <br/>
<a id="pl.129.32"></a><var>129.32</var>imposed by section 
         <statute_ref>290.02</statute_ref>, except that sections 
         <statute_ref>290.05, subdivision 1</statute_ref>, clause (a), 
         <statute_ref>290.17, <br/>
<a id="pl.129.33"></a><var>129.33</var>subdivision 4
         </statute_ref>, and 
         <statute_ref>290.191, subdivision 2</statute_ref>, do not apply, and the occupation tax must <br/>
<a id="pl.130.1"></a><var>130.1</var>be computed by applying to taxable income the rate of 2.45 percent. A person subject <br/>
<a id="pl.130.2"></a><var>130.2</var>to occupation tax under this section shall apportion its net income on the basis of the <br/>
<a id="pl.130.3"></a><var>130.3</var>percentage obtained by taking the sum of:<br/>
<a id="pl.130.4"></a><var>130.4</var>(1) 75 percent of the percentage which the sales made within this state in connection <br/>
<a id="pl.130.5"></a><var>130.5</var>with the trade or business during the tax period are of the total sales wherever made in <br/>
<a id="pl.130.6"></a><var>130.6</var>connection with the trade or business during the tax period;<br/>
<a id="pl.130.7"></a><var>130.7</var>(2) 12.5 percent of the percentage which the total tangible property used by the <br/>
<a id="pl.130.8"></a><var>130.8</var>taxpayer in this state in connection with the trade or business during the tax period is of <br/>
<a id="pl.130.9"></a><var>130.9</var>the total tangible property, wherever located, used by the taxpayer in connection with the <br/>
<a id="pl.130.10"></a><var>130.10</var>trade or business during the tax period; and<br/>
<a id="pl.130.11"></a><var>130.11</var>(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred <br/>
<a id="pl.130.12"></a><var>130.12</var>in this state or paid in respect to labor performed in this state in connection with the trade <br/>
<a id="pl.130.13"></a><var>130.13</var>or business during the tax period are of the taxpayer's total payrolls paid or incurred in <br/>
<a id="pl.130.14"></a><var>130.14</var>connection with the trade or business during the tax period.<br/>
<a id="pl.130.15"></a><var>130.15</var>The tax is in addition to all other taxes.<br/>
<a id="pl.130.16"></a><var>130.16</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.130.17"></a><var>130.17</var>December 31, 2010.<br/>
<br/>
<a id="bill.8.5.0"></a><a id="pl.130.18"></a><var>130.18</var>    Sec. 5. Minnesota Statutes 2010, section 298.01, subdivision 3a, is amended to read:<br/>
<a id="pl.130.19"></a><var>130.19</var>    Subd. 3a. <b>Gross income.</b> (a) For purposes of determining a person's taxable income <br/>
<a id="pl.130.20"></a><var>130.20</var>under subdivision 3, gross income is determined by the amount of gross proceeds from <br/>
<a id="pl.130.21"></a><var>130.21</var>mining in this state under section 
         <statute_ref>298.016</statute_ref> and includes any gain or loss recognized <br/>
<a id="pl.130.22"></a><var>130.22</var>from the sale or disposition of assets used in the business in this state. If more than one <br/>
<a id="pl.130.23"></a><var>130.23</var>ore, mineral, or metal, or energy resource referred to in section 
         <statute_ref>298.016</statute_ref> is mined and <br/>
<a id="pl.130.24"></a><var>130.24</var>processed at the same mine and plant, a gross income for each ore, mineral, or metal, or <br/>
<a id="pl.130.25"></a><var>130.25</var>energy resource must be determined separately. The gross incomes may be combined on <br/>
<a id="pl.130.26"></a><var>130.26</var>one occupation tax return to arrive at the gross income of all production.<br/>
<a id="pl.130.27"></a><var>130.27</var>(b) In applying section 
         <statute_ref>290.191, subdivision 5</statute_ref>, transfers of ores, metals, or minerals <br/>
<a id="pl.130.28"></a><var>130.28</var>that are subject to tax under this chapter are deemed to be sales in this state.<br/>
<a id="pl.130.29"></a><var>130.29</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.130.30"></a><var>130.30</var>December 31, 2010.<br/>
<br/>
<a id="bill.8.6.0"></a><a id="pl.130.31"></a><var>130.31</var>    Sec. 6. Minnesota Statutes 2010, section 298.015, subdivision 1, is amended to read:<br/>
<a id="pl.130.32"></a><var>130.32</var>    Subdivision 1. <b>Tax imposed.</b> A person engaged in the business of mining shall pay <br/>
<a id="pl.130.33"></a><var>130.33</var>to the state of Minnesota for distribution as provided in section 
         <statute_ref>298.018</statute_ref> a net proceeds tax <br/>
<a id="pl.131.1"></a><var>131.1</var>equal to two percent of the net proceeds from mining in Minnesota. The tax applies to all <br/>
<a id="pl.131.2"></a><var>131.2</var>mineral and energy resources ores, metals, and minerals mined or, extracted, produced, <br/>
<a id="pl.131.3"></a><var>131.3</var>or refined within the state of Minnesota except for sand, silica sand, gravel, building <br/>
<a id="pl.131.4"></a><var>131.4</var>stone, crushed rock, limestone, granite, dimension granite, dimension stone, horticultural <br/>
<a id="pl.131.5"></a><var>131.5</var>peat, clay, soil, iron ore, and taconite concentrates. The tax is in addition to all other <br/>
<a id="pl.131.6"></a><var>131.6</var>taxes provided for by law. <br/>
<a id="pl.131.7"></a><var>131.7</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.131.8"></a><var>131.8</var>December 31, 2010.<br/>
<br/>
<a id="bill.8.7.0"></a><a id="pl.131.9"></a><var>131.9</var>    Sec. 7. Minnesota Statutes 2010, section 298.015, subdivision 2, is amended to read:<br/>
<a id="pl.131.10"></a><var>131.10</var>    Subd. 2. <b>Net proceeds.</b> For purposes of this section, the term "net proceeds" means <br/>
<a id="pl.131.11"></a><var>131.11</var>the gross proceeds from mining, as defined in section 
         <statute_ref>298.016</statute_ref>, less the deductions allowed <br/>
<a id="pl.131.12"></a><var>131.12</var>in section 
<statute_ref>298.017</statute_ref> for purposes of determining taxable income under section 298.01, <br/>
<a id="pl.131.13"></a><var>131.13</var>subdivision 3b, applied to the mining, production, processing, beneficiation, smelting, or <br/>
<a id="pl.131.14"></a><var>131.14</var>refining of metal or mineral products. No other credits or deductions shall apply to this tax <br/>
<a id="pl.131.15"></a><var>131.15</var>except for those provided in section 
<statute_ref>298.017</statute_ref>. <br/>
<a id="pl.131.16"></a><var>131.16</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.131.17"></a><var>131.17</var>thereafter.<br/>
<br/>
<a id="bill.8.8.0"></a><a id="pl.131.18"></a><var>131.18</var>    Sec. 8. Minnesota Statutes 2010, section 298.016, subdivision 4, is amended to read:<br/>
<a id="pl.131.19"></a><var>131.19</var>    Subd. 4. <b>Definitions</b><b> Metal or mineral products; definition</b><b>.</b> For the purposes of <br/>
<a id="pl.131.20"></a><var>131.20</var>sections 
<statute_ref>298.015</statute_ref> and 
<statute_ref>298.017</statute_ref> this section, the terms defined in this subdivision have the <br/>
<a id="pl.131.21"></a><var>131.21</var>meaning given them unless the context clearly indicates otherwise. <br/>
<a id="pl.131.22"></a><var>131.22</var>(a) "metal or mineral products" means all those mineral and energy resources ores, <br/>
<a id="pl.131.23"></a><var>131.23</var>metals, and minerals subject to the tax provided in section 
         <statute_ref>298.015</statute_ref>. <br/>
<a id="pl.131.24"></a><var>131.24</var>(b) "Exploration" means activities designed and engaged in to ascertain the <br/>
<a id="pl.131.25"></a><var>131.25</var>existence, location, extent, or quality of any deposit of metal or mineral products prior to <br/>
<a id="pl.131.26"></a><var>131.26</var>the development of a mining site.<br/>
<a id="pl.131.27"></a><var>131.27</var>(c) "Development" means activities designed and engaged in to prepare or develop <br/>
<a id="pl.131.28"></a><var>131.28</var>a potential mining site for mining after the existence of metal or mineral products in <br/>
<a id="pl.131.29"></a><var>131.29</var>commercially marketable quantities has been disclosed including, but not limited to, <br/>
<a id="pl.131.30"></a><var>131.30</var>the clearing of forestation, the building of roads, removal of overburden, or the sinking <br/>
<a id="pl.131.31"></a><var>131.31</var>of shafts.<br/>
<a id="pl.132.1"></a><var>132.1</var>(d) "Research" means activities designed and engaged in to create new or improved <br/>
<a id="pl.132.2"></a><var>132.2</var>methods of mining, producing, processing, beneficiating, smelting, or refining metal <br/>
<a id="pl.132.3"></a><var>132.3</var>or mineral products.<br/>
<a id="pl.132.4"></a><var>132.4</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.132.5"></a><var>132.5</var>December 31, 2010. <br/>
<br/>
<a id="bill.8.9.0"></a><a id="pl.132.6"></a><var>132.6</var>    Sec. 9. Minnesota Statutes 2010, section 298.225, subdivision 1, is amended to read:<br/>
<a id="pl.132.7"></a><var>132.7</var>    Subdivision 1. <b>Guaranteed distribution.</b> (a) The distribution of the taconite <br/>
<a id="pl.132.8"></a><var>132.8</var>production tax as provided in section 
         <statute_ref>298.28, subdivisions 3 to 5</statute_ref>, 6, paragraph (b), and <br/>
<a id="pl.132.9"></a><var>132.9</var>7, and 8, shall equal the lesser of the following amounts: <br/>
<a id="pl.132.10"></a><var>132.10</var>(1) the amount distributed pursuant to this section and section 
         <statute_ref>298.28</statute_ref>, with respect <br/>
<a id="pl.132.11"></a><var>132.11</var>to 1983 production if the production for the year prior to the distribution year is no less <br/>
<a id="pl.132.12"></a><var>132.12</var>than 42,000,000 taxable tons. If the production is less than 42,000,000 taxable tons, the <br/>
<a id="pl.132.13"></a><var>132.13</var>amount of the distributions shall be reduced proportionately at the rate of two percent <br/>
<a id="pl.132.14"></a><var>132.14</var>for each 1,000,000 tons, or part of 1,000,000 tons by which the production is less than <br/>
<a id="pl.132.15"></a><var>132.15</var>42,000,000 tons; or <br/>
<a id="pl.132.16"></a><var>132.16</var>(2)(i) for the distributions made pursuant to section 
         <statute_ref>298.28, subdivisions 4, <br/>
<a id="pl.132.17"></a><var>132.17</var>paragraphs (b)
         </statute_ref> and (c), and 6, paragraph (c), 31.2 percent of the amount distributed <br/>
<a id="pl.132.18"></a><var>132.18</var>pursuant to this section and section 
         <statute_ref>298.28</statute_ref>, with respect to 1983 production; <br/>
<a id="pl.132.19"></a><var>132.19</var>(ii) for the distributions made pursuant to section 
         <statute_ref>298.28, subdivision 5</statute_ref>, paragraphs <br/>
<a id="pl.132.20"></a><var>132.20</var>(b) and (d), 75 percent of the amount distributed pursuant to this section and section <br/>
<statute_ref><a id="pl.132.21"></a><var>132.21</var>298.28
         </statute_ref>, with respect to 1983 production. <br/>
<a id="pl.132.22"></a><var>132.22</var>(b) The distribution of the taconite production tax as provided in section 
         <statute_ref>298.28, <br/>
<a id="pl.132.23"></a><var>132.23</var>subdivision 2
         </statute_ref>, shall equal the following amount: <br/>
<a id="pl.132.24"></a><var>132.24</var>(1) if the production for the year prior to the distribution year is at least 42,000,000 <br/>
<a id="pl.132.25"></a><var>132.25</var>taxable tons, the amount distributed pursuant to this section and section 
         <statute_ref>298.28</statute_ref> with <br/>
<a id="pl.132.26"></a><var>132.26</var>respect to 1999 production; or <br/>
<a id="pl.132.27"></a><var>132.27</var>(2) if the production for the year prior to the distribution year is less than 42,000,000 <br/>
<a id="pl.132.28"></a><var>132.28</var>taxable tons, the amount distributed pursuant to this section and section 
         <statute_ref>298.28</statute_ref> with respect <br/>
<a id="pl.132.29"></a><var>132.29</var>to 1999 production, reduced proportionately at the rate of two percent for each 1,000,000 <br/>
<a id="pl.132.30"></a><var>132.30</var>tons or part of 1,000,000 tons by which the production is less than 42,000,000 tons. <br/>
<a id="pl.132.31"></a><var>132.31</var><b>EFFECTIVE DATE.</b>This section is effective for distributions in 2012 and <br/>
<a id="pl.132.32"></a><var>132.32</var>thereafter.<br/>
<br/>
<a id="bill.8.10.0"></a><a id="pl.132.33"></a><var>132.33</var>    Sec. 10. Minnesota Statutes 2010, section 298.24, subdivision 1, is amended to read:<br/>
<a id="pl.133.1"></a><var>133.1</var>    Subdivision 1. <b>Imposed; calculation.</b> (a) For concentrate produced in 2001, 2002, <br/>
<a id="pl.133.2"></a><var>133.2</var>and 2003 2011 and 2012, there is imposed upon taconite and iron sulphides, and upon the <br/>
<a id="pl.133.3"></a><var>133.3</var>mining and quarrying thereof, and upon the production of iron ore concentrate therefrom, <br/>
<a id="pl.133.4"></a><var>133.4</var>and upon the concentrate so produced, and upon other iron-bearing material, a tax of <br/>
<a id="pl.133.5"></a><var>133.5</var>$2.103 $2.380 per gross ton of merchantable iron ore concentrate produced therefrom. <br/>
<a id="pl.133.6"></a><var>133.6</var>For concentrates produced in 2005, the tax rate is the same rate imposed for concentrates <br/>
<a id="pl.133.7"></a><var>133.7</var>produced in 2004. For concentrates produced in 2009 and subsequent years, the tax is also <br/>
<a id="pl.133.8"></a><var>133.8</var>imposed upon other iron-bearing material.<br/>
<a id="pl.133.9"></a><var>133.9</var>    (b) For concentrates produced in 2006 2013 and subsequent years, the tax rate shall <br/>
<a id="pl.133.10"></a><var>133.10</var>be equal to the preceding year's tax rate plus an amount equal to the preceding year's tax <br/>
<a id="pl.133.11"></a><var>133.11</var>rate multiplied by the percentage increase in the implicit price deflator from the fourth <br/>
<a id="pl.133.12"></a><var>133.12</var>quarter of the second preceding year to the fourth quarter of the preceding year. "Implicit <br/>
<a id="pl.133.13"></a><var>133.13</var>price deflator" means the implicit price deflator for the gross domestic product prepared by <br/>
<a id="pl.133.14"></a><var>133.14</var>the Bureau of Economic Analysis of the United States Department of Commerce.<br/>
<a id="pl.133.15"></a><var>133.15</var>    (c) An additional tax is imposed equal to three cents per gross ton of merchantable <br/>
<a id="pl.133.16"></a><var>133.16</var>iron ore concentrate for each one percent that the iron content of the product exceeds 72 <br/>
<a id="pl.133.17"></a><var>133.17</var>percent, when dried at 212 degrees Fahrenheit.<br/>
<a id="pl.133.18"></a><var>133.18</var>    (d) The tax on taconite and iron sulphides shall be imposed on the average of the <br/>
<a id="pl.133.19"></a><var>133.19</var>production for the current year and the previous two years. The rate of the tax imposed <br/>
<a id="pl.133.20"></a><var>133.20</var>will be the current year's tax rate. This clause shall not apply in the case of the closing <br/>
<a id="pl.133.21"></a><var>133.21</var>of a taconite facility if the property taxes on the facility would be higher if this clause <br/>
<a id="pl.133.22"></a><var>133.22</var>and section 
         <statute_ref>298.25</statute_ref> were not applicable. The tax on other iron-bearing material shall be <br/>
<a id="pl.133.23"></a><var>133.23</var>imposed on the current year production.<br/>
<a id="pl.133.24"></a><var>133.24</var>    (e) If the tax or any part of the tax imposed by this subdivision is held to be <br/>
<a id="pl.133.25"></a><var>133.25</var>unconstitutional, a tax of $2.103 $2.380 per gross ton of merchantable iron ore concentrate <br/>
<a id="pl.133.26"></a><var>133.26</var>produced shall be imposed.<br/>
<a id="pl.133.27"></a><var>133.27</var>    (f) Consistent with the intent of this subdivision to impose a tax based upon the <br/>
<a id="pl.133.28"></a><var>133.28</var>weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly <br/>
<a id="pl.133.29"></a><var>133.29</var>determine the weight of merchantable iron ore concentrate included in fluxed pellets by <br/>
<a id="pl.133.30"></a><var>133.30</var>subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic <br/>
<a id="pl.133.31"></a><var>133.31</var>flux additives included in the pellets from the weight of the pellets. For purposes of this <br/>
<a id="pl.133.32"></a><var>133.32</var>paragraph, "fluxed pellets" are pellets produced in a process in which limestone, dolomite, <br/>
<a id="pl.133.33"></a><var>133.33</var>olivine, or other basic flux additives are combined with merchantable iron ore concentrate. <br/>
<a id="pl.133.34"></a><var>133.34</var>No subtraction from the weight of the pellets shall be allowed for binders, mineral and <br/>
<a id="pl.133.35"></a><var>133.35</var>chemical additives other than basic flux additives, or moisture.<br/>
<a id="pl.134.1"></a><var>134.1</var>    (g)(1) Notwithstanding any other provision of this subdivision, for the first two years <br/>
<a id="pl.134.2"></a><var>134.2</var>of a plant's commercial production of direct reduced ore from ore mined in this state, no <br/>
<a id="pl.134.3"></a><var>134.3</var>tax is imposed under this section. As used in this paragraph, "commercial production" is <br/>
<a id="pl.134.4"></a><var>134.4</var>production of more than 50,000 tons of direct reduced ore in the current year or in any <br/>
<a id="pl.134.5"></a><var>134.5</var>prior year, "noncommercial production" is production of 50,000 tons or less of direct <br/>
<a id="pl.134.6"></a><var>134.6</var>reduced ore in any year, and "direct reduced ore" is ore that results in a product that has an <br/>
<a id="pl.134.7"></a><var>134.7</var>iron content of at least 75 percent. For the third year of a plant's commercial production of <br/>
<a id="pl.134.8"></a><var>134.8</var>direct reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate <br/>
<a id="pl.134.9"></a><var>134.9</var>otherwise determined under this subdivision. For the fourth commercial production year, <br/>
<a id="pl.134.10"></a><var>134.10</var>the rate is 50 percent of the rate otherwise determined under this subdivision; for the fifth <br/>
<a id="pl.134.11"></a><var>134.11</var>commercial production year, the rate is 75 percent of the rate otherwise determined under <br/>
<a id="pl.134.12"></a><var>134.12</var>this subdivision; and for all subsequent commercial production years, the full rate is <br/>
<a id="pl.134.13"></a><var>134.13</var>imposed.<br/>
<a id="pl.134.14"></a><var>134.14</var>    (2) Subject to clause (1), production of direct reduced ore in this state is subject to <br/>
<a id="pl.134.15"></a><var>134.15</var>the tax imposed by this section, but if that production is not produced by a producer of <br/>
<a id="pl.134.16"></a><var>134.16</var>taconite, iron sulfides, or other iron-bearing material, the production of taconite, iron <br/>
<a id="pl.134.17"></a><var>134.17</var>sulfides, or other iron-bearing material, that is consumed in the production of direct <br/>
<a id="pl.134.18"></a><var>134.18</var>reduced iron in this state is not subject to the tax imposed by this section on taconite, <br/>
<a id="pl.134.19"></a><var>134.19</var>iron sulfides, or other iron-bearing material.<br/>
<a id="pl.134.20"></a><var>134.20</var>    (3) Notwithstanding any other provision of this subdivision, no tax is imposed <br/>
<a id="pl.134.21"></a><var>134.21</var>on direct reduced ore under this section during the facility's noncommercial production <br/>
<a id="pl.134.22"></a><var>134.22</var>of direct reduced ore. The taconite or iron sulphides consumed in the noncommercial <br/>
<a id="pl.134.23"></a><var>134.23</var>production of direct reduced ore is subject to the tax imposed by this section on taconite <br/>
<a id="pl.134.24"></a><var>134.24</var>and iron sulphides. Three-year average production of direct reduced ore does not <br/>
<a id="pl.134.25"></a><var>134.25</var>include production of direct reduced ore in any noncommercial year. Three-year average <br/>
<a id="pl.134.26"></a><var>134.26</var>production for a direct reduced ore facility that has noncommercial production is the <br/>
<a id="pl.134.27"></a><var>134.27</var>average of the commercial production of direct reduced ore for the current year and the <br/>
<a id="pl.134.28"></a><var>134.28</var>previous two commercial years.<br/>
<a id="pl.134.29"></a><var>134.29</var>    (4) This paragraph applies only to plants for which all environmental permits have <br/>
<a id="pl.134.30"></a><var>134.30</var>been obtained and construction has begun before July 1, 2008.<br/>
<a id="pl.134.31"></a><var>134.31</var><b>EFFECTIVE DATE.</b>This section is effective for production in 2011 and thereafter.<br/>
<br/>
<a id="bill.8.11.0"></a><a id="pl.134.32"></a><var>134.32</var>    Sec. 11. Minnesota Statutes 2010, section 298.28, subdivision 3, is amended to read:<br/>
<a id="pl.134.33"></a><var>134.33</var>    Subd. 3. <b>Cities; towns.</b> (a) 12.5 12.2 cents per taxable ton, less any amount <br/>
<a id="pl.134.34"></a><var>134.34</var>distributed under subdivision 8, and paragraph (b), must be allocated to the taconite <br/>
<a id="pl.134.35"></a><var>134.35</var>municipal aid account to be distributed as provided in section 
         <statute_ref>298.282</statute_ref>.<br/>
<a id="pl.135.1"></a><var>135.1</var>    (b) An amount must be allocated to towns or cities that is annually certified by <br/>
<a id="pl.135.2"></a><var>135.2</var>the county auditor of a county containing a taconite tax relief area as defined in section <br/>
<statute_ref><a id="pl.135.3"></a><var>135.3</var>273.134, paragraph (b)
         </statute_ref>, within which there is (1) an organized township if, as of January <br/>
<a id="pl.135.4"></a><var>135.4</var>2, 1982, more than 75 percent of the assessed valuation of the township consists of iron <br/>
<a id="pl.135.5"></a><var>135.5</var>ore or (2) a city if, as of January 2, 1980, more than 75 percent of the assessed valuation <br/>
<a id="pl.135.6"></a><var>135.6</var>of the city consists of iron ore.<br/>
<a id="pl.135.7"></a><var>135.7</var>    (c) The amount allocated under paragraph (b) will be the portion of a township's or <br/>
<a id="pl.135.8"></a><var>135.8</var>city's certified levy equal to the proportion of (1) the difference between 50 percent of <br/>
<a id="pl.135.9"></a><var>135.9</var>January 2, 1982, assessed value in the case of a township and 50 percent of the January 2, <br/>
<a id="pl.135.10"></a><var>135.10</var>1980, assessed value in the case of a city and its current assessed value to (2) the sum of <br/>
<a id="pl.135.11"></a><var>135.11</var>its current assessed value plus the difference determined in (1), provided that the amount <br/>
<a id="pl.135.12"></a><var>135.12</var>distributed shall not exceed $55 per capita in the case of a township or $75 per capita in <br/>
<a id="pl.135.13"></a><var>135.13</var>the case of a city. For purposes of this limitation, population will be determined according <br/>
<a id="pl.135.14"></a><var>135.14</var>to the 1980 decennial census conducted by the United States Bureau of the Census. If the <br/>
<a id="pl.135.15"></a><var>135.15</var>current assessed value of the township exceeds 50 percent of the township's January 2, <br/>
<a id="pl.135.16"></a><var>135.16</var>1982, assessed value, or if the current assessed value of the city exceeds 50 percent of the <br/>
<a id="pl.135.17"></a><var>135.17</var>city's January 2, 1980, assessed value, this paragraph shall not apply. For purposes of this <br/>
<a id="pl.135.18"></a><var>135.18</var>paragraph, "assessed value," when used in reference to years other than 1980 or 1982, <br/>
<a id="pl.135.19"></a><var>135.19</var>means the appropriate net tax capacities multiplied by 10.2.<br/>
<a id="pl.135.20"></a><var>135.20</var>    (d) In addition to other distributions under this subdivision, three cents per taxable <br/>
<a id="pl.135.21"></a><var>135.21</var>ton for distributions in 2009 must be allocated for distribution to towns that are entirely <br/>
<a id="pl.135.22"></a><var>135.22</var>located within the taconite tax relief area defined in section 
         <statute_ref>273.134</statute_ref>, paragraph (b). <br/>
<a id="pl.135.23"></a><var>135.23</var>For distribution in 2010 and subsequent years, the three-cent amount must be annually <br/>
<a id="pl.135.24"></a><var>135.24</var>increased in the same proportion as the increase in the implicit price deflator as provided <br/>
<a id="pl.135.25"></a><var>135.25</var>in section 
         <statute_ref>298.24, subdivision 1</statute_ref>. The amount available under this paragraph will be <br/>
<a id="pl.135.26"></a><var>135.26</var>distributed to eligible towns on a per capita basis, provided that no town may receive more <br/>
<a id="pl.135.27"></a><var>135.27</var>than $50,000 in any year under this paragraph. Any amount of the distribution that exceeds <br/>
<a id="pl.135.28"></a><var>135.28</var>the $50,000 limitation for a town under this paragraph must be redistributed on a per <br/>
<a id="pl.135.29"></a><var>135.29</var>capita basis among the other eligible towns, to whose distributions do not exceed $50,000.<br/>
<br/>
<a id="bill.8.12.0"></a><a id="pl.135.30"></a><var>135.30</var>    Sec. 12. <b> REPEALER.</b><br/>
<a id="pl.135.31"></a><var>135.31</var>(a) Minnesota Statutes 2010, section 298.28, subdivisions 8 and 9c, are repealed.<br/>
<a id="pl.135.32"></a><var>135.32</var>(b) Minnesota Statutes 2010, section 298.285, is repealed.<br/>
<a id="pl.135.33"></a><var>135.33</var>(c) Minnesota Statutes 2010, section 298.017, is repealed.<br/>
<a id="pl.136.1"></a><var>136.1</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective for distributions in 2012 and <br/>
<a id="pl.136.2"></a><var>136.2</var>thereafter of taxes on production in 2011 and thereafter. Paragraph (b) is effective June 30, <br/>
<a id="pl.136.3"></a><var>136.3</var>2011. Paragraph (c) is effective for taxable years beginning after December 31, 2010.<br/>
<br/>
<a id="bill.9.0.0"></a>

<a id="bill.9.1.0"></a><a id="pl.136.6"></a><var>136.6</var>    Section 1. Minnesota Statutes 2010, section 270C.13, subdivision 1, is amended to read:<br/>
<a id="pl.136.7"></a><var>136.7</var>    Subdivision 1. <b>Biennial report.</b> The commissioner shall report to the legislature <br/>
<a id="pl.136.8"></a><var>136.8</var>by March 1 of each odd-numbered year on the overall incidence of the income tax, <br/>
<a id="pl.136.9"></a><var>136.9</var>sales and excise taxes, and property tax. The report shall present information on the <br/>
<a id="pl.136.10"></a><var>136.10</var>distribution of the tax burden as follows: (1) for the overall income distribution, using <br/>
<a id="pl.136.11"></a><var>136.11</var>a systemwide incidence measure such as the Suits index or other appropriate measures <br/>
<a id="pl.136.12"></a><var>136.12</var>of equality and inequality; (2) by income classes, including at a minimum deciles of the <br/>
<a id="pl.136.13"></a><var>136.13</var>income distribution; and (3) by other appropriate taxpayer characteristics. The report <br/>
<a id="pl.136.14"></a><var>136.14</var>must also include information on the distribution of the burden of federal taxes borne <br/>
<a id="pl.136.15"></a><var>136.15</var>by Minnesota residents.<br/>
<a id="pl.136.16"></a><var>136.16</var><b>EFFECTIVE DATE.</b>This section is effective beginning with the report due in <br/>
<a id="pl.136.17"></a><var>136.17</var>March 2013.<br/>
<br/>
<a id="bill.9.2.0"></a><a id="pl.136.18"></a><var>136.18</var>    Sec. 2. <b>BUDGET RESERVE REDUCTION.</b><br/>
<a id="pl.136.19"></a><var>136.19</var>On July 1, 2011, the commissioner of management and budget shall cancel <br/>
<a id="pl.136.20"></a><var>136.20</var>$8,665,000 of the balance in the budget reserve account in Minnesota Statutes, section <br/>
<a id="pl.136.21"></a><var>136.21</var>16A.152, to the general fund.<br/>
<br/>
<a id="bill.9.3.0"></a><a id="pl.136.22"></a><var>136.22</var>    Sec. 3. <b>CASH FLOW ACCOUNT REDUCTION.</b><br/>
<a id="pl.136.23"></a><var>136.23</var>On July 1, 2011, the commissioner of management and budget shall cancel <br/>
<a id="pl.136.24"></a><var>136.24</var>$166,000,000 of the balance in the cash flow account in Minnesota Statutes, section <br/>
<a id="pl.136.25"></a><var>136.25</var>16A.152, to the general fund.<br/>
<br/>
<a id="bill.9.4.0"></a><table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.136.26"></a><var>136.26</var><br/>
</td>
<td colspan="3">Sec. 4. <b>TRANSFER</b><br/>
</td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
</table><a id="pl.136.27"></a><var>136.27</var>    Prior to June 30, 2012, the commissioner of iron range resources shall transfer <br/>
<a id="pl.136.28"></a><var>136.28</var>$60,000,000 from the Douglas J. Johnson economic protection trust fund to the general <br/>
<a id="pl.136.29"></a><var>136.29</var>fund. This is a onetime transfer."<br/>
<a id="pl.136.30"></a><var>136.30</var>Delete the title and insert:<br/>

<a id="pl.136.33"></a><var>136.33</var>individual income, corporate franchise, estate, property, aids, credits, payments, <br/>
<a id="pl.137.1"></a><var>137.1</var>refunds, sales and use, tax increment financing, minerals, local, and other <br/>
<a id="pl.137.2"></a><var>137.2</var>taxes and tax-related provisions; authorizing border city development zone <br/>
<a id="pl.137.3"></a><var>137.3</var>powers and local taxes; extending levy limits; repealing sustainable forest <br/>
<a id="pl.137.4"></a><var>137.4</var>resource management incentive; authorizing grants to local governments for <br/>
<a id="pl.137.5"></a><var>137.5</var>cooperation and consolidation; providing a science and technology program; <br/>
<a id="pl.137.6"></a><var>137.6</var>conforming to changes made to the Internal Revenue Code; permitting certain <br/>
<a id="pl.137.7"></a><var>137.7</var>appeals; modifying provision allowing for a reciprocity agreement with state of <br/>
<a id="pl.137.8"></a><var>137.8</var>Wisconsin; setting the levels of the cash flow account and the budget reserve <br/>
<a id="pl.137.9"></a><var>137.9</var>account; suspending certain maintenance of effort requirements; requiring <br/>
<a id="pl.137.10"></a><var>137.10</var>studies; requiring reports; appropriating money;amending Minnesota Statutes <br/>
<a id="pl.137.11"></a><var>137.11</var>2010, sections 88.49, subdivisions 5, 9a; 97A.061, subdivisions 1, 3; 126C.01, <br/>
<a id="pl.137.12"></a><var>137.12</var>subdivision 3; 270A.03, subdivision 7; 270B.12, by adding a subdivision; <br/>
<a id="pl.137.13"></a><var>137.13</var>270C.13, subdivision 1; 272.02, subdivision 39, by adding a subdivision; <br/>
<a id="pl.137.14"></a><var>137.14</var>273.111, by adding a subdivision; 273.114, subdivision 2, as amended; 273.121, <br/>
<a id="pl.137.15"></a><var>137.15</var>subdivision 1; 273.13, subdivisions 23, 25, 34, by adding a subdivision; <br/>
<a id="pl.137.16"></a><var>137.16</var>273.1384, subdivisions 3, 4; 273.1393; 273.1398, subdivision 3; 274.01, <br/>
<a id="pl.137.17"></a><var>137.17</var>subdivision 1; 275.025, subdivisions 1, 3, 4; 275.70, subdivision 5; 275.71, <br/>
<a id="pl.137.18"></a><var>137.18</var>subdivisions 2, 4, 5; 276.04, subdivision 2; 289A.02, subdivision 7, as amended; <br/>
<a id="pl.137.19"></a><var>137.19</var>289A.20, subdivision 4; 289A.50, subdivision 1; 290.01, subdivisions 6, 19, as <br/>
<a id="pl.137.20"></a><var>137.20</var>amended, 19a, as amended, 19b, 19c, as amended, 31, as amended; 290.05, <br/>
<a id="pl.137.21"></a><var>137.21</var>subdivision 1; 290.06, subdivision 2c; 290.0674, subdivision 1; 290.068, <br/>
<a id="pl.137.22"></a><var>137.22</var>subdivision 1; 290.081; 290.091, subdivision 2; 290.191, subdivisions 2, 3; <br/>
<a id="pl.137.23"></a><var>137.23</var>290A.03, subdivisions 11, 13, 15, as amended; 290A.04, subdivisions 2, 2a, <br/>
<a id="pl.137.24"></a><var>137.24</var>4, by adding a subdivision; 291.005, subdivision 1; 291.03, subdivision 1, by <br/>
<a id="pl.137.25"></a><var>137.25</var>adding subdivisions; 297A.61, subdivision 3; 297A.62, by adding a subdivision; <br/>
<a id="pl.137.26"></a><var>137.26</var>297A.63, by adding a subdivision; 297A.668, subdivision 7, by adding a <br/>
<a id="pl.137.27"></a><var>137.27</var>subdivision; 297A.68, by adding a subdivision; 297A.70, subdivisions 1, 2, 3, 8; <br/>
<a id="pl.137.28"></a><var>137.28</var>297A.75, subdivisions 1, 2, 3; 297A.82, subdivision 4; 297A.99, subdivisions <br/>
<a id="pl.137.29"></a><var>137.29</var>1, 3; 298.001, by adding a subdivision; 298.01, subdivisions 3, 3a; 298.015, <br/>
<a id="pl.137.30"></a><var>137.30</var>subdivisions 1, 2; 298.016, subdivision 4; 298.225, subdivision 1; 298.24, <br/>
<a id="pl.137.31"></a><var>137.31</var>subdivision 1; 298.28, subdivision 3; 469.176, subdivisions 4c, 4m; 469.1763, <br/>
<a id="pl.137.32"></a><var>137.32</var>subdivision 2; 473.757, subdivision 11; 477A.011, subdivision 20, by adding <br/>
<a id="pl.137.33"></a><var>137.33</var>a subdivision; 477A.0124, by adding a subdivision; 477A.013, subdivisions <br/>
<a id="pl.137.34"></a><var>137.34</var>8, 9, by adding a subdivision; 477A.03; 477A.11, subdivision 1; 477A.12, <br/>
<a id="pl.137.35"></a><var>137.35</var>subdivision 1; 477A.14, subdivision 1; 477A.17; Laws 1996, chapter 471, article <br/>
<a id="pl.137.36"></a><var>137.36</var>2, section 29, subdivision 1, as amended; Laws 1998, chapter 389, article 8, <br/>
<a id="pl.137.37"></a><var>137.37</var>section 43, subdivisions 3, as amended, 4, as amended, 5, as amended; Laws <br/>
<a id="pl.137.38"></a><var>137.38</var>2008, chapter 366, article 7, section 19, subdivision 3; Laws 2010, chapter 389, <br/>
<a id="pl.137.39"></a><var>137.39</var>article 5, section 6, subdivision 1; article 7, section 22; proposing coding for <br/>
<a id="pl.137.40"></a><var>137.40</var>new law in Minnesota Statutes, chapters 116W; 275; 373; repealing Minnesota <br/>
<a id="pl.137.41"></a><var>137.41</var>Statutes 2010, sections 10A.322, subdivision 4; 13.4967, subdivisions 2, 2b; <br/>
<a id="pl.137.42"></a><var>137.42</var>273.1384, subdivisions 1, 6; 275.025; 275.295; 289A.60, subdivision 31; 290.06, <br/>
<a id="pl.137.43"></a><var>137.43</var>subdivision 23; 290C.01; 290C.02; 290C.03; 290C.04; 290C.05; 290C.055; <br/>
<a id="pl.137.44"></a><var>137.44</var>290C.06; 290C.07; 290C.08; 290C.09; 290C.10; 290C.11; 290C.12; 290C.13; <br/>
<a id="pl.137.45"></a><var>137.45</var>298.017; 298.28, subdivisions 8, 9c; 298.285; 477A.145."<br/>
<table>
<col width="50px"/>
<col width="252px"/>
<col width="42px"/>
<col width="252px"/>
<tr>
<td><a id="pl.138.1"></a><var>138.1</var><br/>
</td>
<td colspan="3">We request the adoption of this report and repassage of the bill.<br/>
</td>
</tr>
<tr>
<td><a id="pl.138.2"></a><var>138.2</var><br/>
</td>
<td>House Conferees:<br/>
<span width="2em"></span></td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.138.3"></a><var>138.3</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.138.4"></a><var>138.4</var><br/>
</td>
<td>Greg Davids<br/>
</td>
<td></td>
<td>Sarah Anderson<br/>
</td>
</tr>
<tr>
<td><a id="pl.138.5"></a><var>138.5</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.138.6"></a><var>138.6</var><br/>
</td>
<td>Jenifer Loon<br/>
</td>
<td></td>
<td>Linda Runbeck<br/>
</td>
</tr>
<tr>
<td><a id="pl.138.7"></a><var>138.7</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.138.8"></a><var>138.8</var><br/>
</td>
<td>Ann Lenczewski<br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.138.9"></a><var>138.9</var><br/>
</td>
<td>Senate Conferees:<br/>
<span width="2em"></span></td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.138.10"></a><var>138.10</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.138.11"></a><var>138.11</var><br/>
</td>
<td>Julianne E. Ortman<br/>
</td>
<td></td>
<td>David H. Senjem<br/>
</td>
</tr>
<tr>
<td><a id="pl.138.12"></a><var>138.12</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.138.13"></a><var>138.13</var><br/>
</td>
<td>Warren Limmer<br/>
</td>
<td></td>
<td>Roger C. Chamberlain<br/>
</td>
</tr>
<tr>
<td><a id="pl.138.14"></a><var>138.14</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.138.15"></a><var>138.15</var><br/>
</td>
<td>Julie A. Rosen<br/>
</td>
<td></td>
<td></td>
</tr>
</table>