<a id="pl.1.3"></a><var>1.3</var>administrative, enforcement, and clarifying changes to taxes on individual <br/>
<a id="pl.1.4"></a><var>1.4</var>income, estates, sales and uses, property, minerals, local taxes, aids to local <br/>
<a id="pl.1.5"></a><var>1.5</var>governments; reducing and eliminating certain payments and credits; modifying <br/>
<a id="pl.1.6"></a><var>1.6</var>property tax refund payments; authorizing grants; modifying the rural preserve <br/>
<a id="pl.1.7"></a><var>1.7</var>program; reducing and eliminating the state general levy; modifying various <br/>
<a id="pl.1.8"></a><var>1.8</var>taxes and tax-related provisions; providing income tax, estate tax, sales tax, <br/>
<a id="pl.1.9"></a><var>1.9</var>and property tax exemptions; authorizing local sales taxes; permitting certain <br/>
<a id="pl.1.10"></a><var>1.10</var>appeals; modifying tax increment financing authorities; requiring studies; setting <br/>
<a id="pl.1.11"></a><var>1.11</var>the levels of the cash flow account and the budget reserve account; appropriating <br/>
<a id="pl.1.12"></a><var>1.12</var>money;amending Minnesota Statutes 2010, sections 97A.061, subdivisions <br/>
<a id="pl.1.13"></a><var>1.13</var>1, 3; 270A.03, subdivisions 2, 7; 270A.07, subdivision 1; 270B.12, by adding <br/>
<a id="pl.1.14"></a><var>1.14</var>a subdivision; 270C.13, subdivision 1; 272.02, subdivision 39, by adding a <br/>
<a id="pl.1.15"></a><var>1.15</var>subdivision; 273.111, by adding a subdivision; 273.114, subdivisions 2, 5, 6; <br/>
<a id="pl.1.16"></a><var>1.16</var>273.13, subdivisions 21b, 23, 25, 34; 273.1384, subdivisions 1, 3, 4, by adding <br/>
<a id="pl.1.17"></a><var>1.17</var>a subdivision; 273.1393; 273.1398, subdivisions 3, 4; 274.01, subdivision 1; <br/>
<a id="pl.1.18"></a><var>1.18</var>275.025, subdivisions 1, 4; 275.08, subdivision 1a; 276.04, subdivision 2; <br/>
<a id="pl.1.19"></a><var>1.19</var>289A.50, subdivision 1; 290.01, subdivisions 6, 19b; 290.05, subdivision 1; <br/>
<a id="pl.1.20"></a><var>1.20</var>290.0674, subdivision 1; 290.081; 290.091, subdivision 2; 290A.03, subdivisions <br/>
<a id="pl.1.21"></a><var>1.21</var>11, 13; 290A.04, subdivisions 2, 4; 291.005, subdivision 1; 291.03, subdivision <br/>
<a id="pl.1.22"></a><var>1.22</var>1, by adding subdivisions; 297A.61, subdivision 3; 297A.67, subdivision 7, by <br/>
<a id="pl.1.23"></a><var>1.23</var>adding subdivisions; 297A.68, subdivision 4; 297A.70, subdivisions 1, 2, 3, 8; <br/>
<a id="pl.1.24"></a><var>1.24</var>297A.75, subdivisions 1, 2, 3; 297A.82, subdivision 4; 297A.99, subdivisions <br/>
<a id="pl.1.25"></a><var>1.25</var>1, 3; 298.001, by adding a subdivision; 298.01, subdivisions 3, 3a, 4; 298.015, <br/>
<a id="pl.1.26"></a><var>1.26</var>subdivisions 1, 2; 298.016, subdivision 4; 298.225, subdivision 1; 298.24, <br/>
<a id="pl.1.27"></a><var>1.27</var>subdivision 1; 298.28, subdivisions 3, 6, 7, 9, 9b; 469.176, subdivisions 4c, <br/>
<a id="pl.1.28"></a><var>1.28</var>4m; 477A.0124, by adding a subdivision; 477A.013, subdivision 9, by adding <br/>
<a id="pl.1.29"></a><var>1.29</var>a subdivision; 477A.03; 477A.11, subdivision 1; 477A.12, subdivision 1; <br/>
<a id="pl.1.30"></a><var>1.30</var>477A.14, subdivision 1; 477A.17; Laws 1996, chapter 471, article 2, section <br/>
<a id="pl.1.31"></a><var>1.31</var>29, subdivision 1, as amended; Laws 1998, chapter 389, article 8, section <br/>
<a id="pl.1.32"></a><var>1.32</var>43, subdivisions 3, as amended, 4, as amended, 5, as amended; Laws 2008, <br/>
<a id="pl.1.33"></a><var>1.33</var>chapter 366, article 7, section 19, subdivision 3; Laws 2010, chapter 389, article <br/>
<a id="pl.1.34"></a><var>1.34</var>7, section 22; proposing coding for new law in Minnesota Statutes, chapters <br/>
<a id="pl.1.35"></a><var>1.35</var>275; 290; repealing Minnesota Statutes 2010, sections 10A.322, subdivision <br/>
<a id="pl.1.36"></a><var>1.36</var>4; 13.4967, subdivision 2; 273.114, subdivision 1; 273.1384, subdivision 6; <br/>
<a id="pl.1.37"></a><var>1.37</var>273.1398, subdivision 4; 275.025; 275.295; 290.06, subdivision 23; 290C.01; <br/>
<a id="pl.1.38"></a><var>1.38</var>290C.02; 290C.03; 290C.04; 290C.05; 290C.055; 290C.06; 290C.07; 290C.08; <br/>
<a id="pl.2.1"></a><var>2.1</var>290C.09; 290C.10; 290C.11; 290C.12; 290C.13; 298.017; 298.227; 298.28, <br/>
<a id="pl.2.2"></a><var>2.2</var>subdivisions 8, 9a, 9c, 10; 298.285; 477A.145.<br/>
<a id="pl.2.3"></a><var>2.3</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.2.6"></a><var>2.6</var>    Section 1. Minnesota Statutes 2010, section 270B.12, is amended by adding a <br/>
<a id="pl.2.7"></a><var>2.7</var>subdivision to read:<br/>
<a id="pl.2.8"></a><var>2.8</var>    Subd. 14. <b>Wisconsin secretary of revenue; income tax reciprocity benchmark </b><br/>
<a id="pl.2.9"></a><var>2.9</var><b>study.</b> The commissioner may disclose return information to the secretary of revenue <br/>
<a id="pl.2.10"></a><var>2.10</var>of the state of Wisconsin for the purpose of conducting a joint individual income tax <br/>
<a id="pl.2.11"></a><var>2.11</var>reciprocity study.<br/>
<a id="pl.2.12"></a><var>2.12</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.2.13"></a><var>2.13</var>    Sec. 2. Minnesota Statutes 2010, section 290.01, subdivision 19b, is amended to read:<br/>
<a id="pl.2.14"></a><var>2.14</var>    Subd. 19b. <b>Subtractions from federal taxable income.</b> For individuals, estates, <br/>
<a id="pl.2.15"></a><var>2.15</var>and trusts, there shall be subtracted from federal taxable income:<br/>
<a id="pl.2.16"></a><var>2.16</var>    (1) net interest income on obligations of any authority, commission, or <br/>
<a id="pl.2.17"></a><var>2.17</var>instrumentality of the United States to the extent includable in taxable income for federal <br/>
<a id="pl.2.18"></a><var>2.18</var>income tax purposes but exempt from state income tax under the laws of the United States;<br/>
<a id="pl.2.19"></a><var>2.19</var>    (2) if included in federal taxable income, the amount of any overpayment of income <br/>
<a id="pl.2.20"></a><var>2.20</var>tax to Minnesota or to any other state, for any previous taxable year, whether the amount <br/>
<a id="pl.2.21"></a><var>2.21</var>is received as a refund or as a credit to another taxable year's income tax liability;<br/>
<a id="pl.2.22"></a><var>2.22</var>    (3) the amount paid to others, less the amount used to claim the credit allowed under <br/>
<a id="pl.2.23"></a><var>2.23</var>section 
         <statute_ref>290.0674</statute_ref>, not to exceed $1,625 for each qualifying child in grades kindergarten <br/>
<a id="pl.2.24"></a><var>2.24</var>to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and <br/>
<a id="pl.2.25"></a><var>2.25</var>transportation of each qualifying child in attending an elementary or secondary school <br/>
<a id="pl.2.26"></a><var>2.26</var>situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a <br/>
<a id="pl.2.27"></a><var>2.27</var>resident of this state may legally fulfill the state's compulsory attendance laws, which <br/>
<a id="pl.2.28"></a><var>2.28</var>is not operated for profit, and which adheres to the provisions of the Civil Rights Act <br/>
<a id="pl.2.29"></a><var>2.29</var>of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or <br/>
<a id="pl.2.30"></a><var>2.30</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.2.31"></a><var>2.31</var>"textbooks" includes books and other instructional materials and equipment purchased <br/>
<a id="pl.2.32"></a><var>2.32</var>or leased for use in elementary and secondary schools in teaching only those subjects <br/>
<a id="pl.2.33"></a><var>2.33</var>legally and commonly taught in public elementary and secondary schools in this state. <br/>
<a id="pl.3.1"></a><var>3.1</var>Equipment expenses qualifying for deduction includes expenses as defined and limited in <br/>
<a id="pl.3.2"></a><var>3.2</var>section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (3). "Textbooks" does not include instructional <br/>
<a id="pl.3.3"></a><var>3.3</var>books and materials used in the teaching of religious tenets, doctrines, or worship, the <br/>
<a id="pl.3.4"></a><var>3.4</var>purpose of which is to instill such tenets, doctrines, or worship, nor does it include books <br/>
<a id="pl.3.5"></a><var>3.5</var>or materials for, or transportation to, extracurricular activities including sporting events, <br/>
<a id="pl.3.6"></a><var>3.6</var>musical or dramatic events, speech activities, driver's education, or similar programs. No <br/>
<a id="pl.3.7"></a><var>3.7</var>deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or <br/>
<a id="pl.3.8"></a><var>3.8</var>the qualifying child's vehicle to provide such transportation for a qualifying child. For <br/>
<a id="pl.3.9"></a><var>3.9</var>purposes of the subtraction provided by this clause, "qualifying child" has the meaning <br/>
<a id="pl.3.10"></a><var>3.10</var>given in section 32(c)(3) of the Internal Revenue Code;<br/>
<a id="pl.3.11"></a><var>3.11</var>    (4) income as provided under section 
         <statute_ref>290.0802</statute_ref>;<br/>
<a id="pl.3.12"></a><var>3.12</var>    (5) to the extent included in federal adjusted gross income, income realized on <br/>
<a id="pl.3.13"></a><var>3.13</var>disposition of property exempt from tax under section 
         <statute_ref>290.491</statute_ref>;<br/>
<a id="pl.3.14"></a><var>3.14</var>    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) <br/>
<a id="pl.3.15"></a><var>3.15</var>of the Internal Revenue Code in determining federal taxable income by an individual <br/>
<a id="pl.3.16"></a><var>3.16</var>who does not itemize deductions for federal income tax purposes for the taxable year, an <br/>
<a id="pl.3.17"></a><var>3.17</var>amount equal to 50 percent of the excess of charitable contributions over $500 allowable <br/>
<a id="pl.3.18"></a><var>3.18</var>as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, <br/>
<a id="pl.3.19"></a><var>3.19</var>under the provisions of Public Law 109-1 and Public Law 111-126;<br/>
<a id="pl.3.20"></a><var>3.20</var>    (7) for individuals who are allowed a federal foreign tax credit for taxes that do not <br/>
<a id="pl.3.21"></a><var>3.21</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.3.22"></a><var>3.22</var>of subnational foreign taxes for the taxable year, but not to exceed the total subnational <br/>
<a id="pl.3.23"></a><var>3.23</var>foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, <br/>
<a id="pl.3.24"></a><var>3.24</var>"federal foreign tax credit" means the credit allowed under section 27 of the Internal <br/>
<a id="pl.3.25"></a><var>3.25</var>Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed <br/>
<a id="pl.3.26"></a><var>3.26</var>under section 904(c) of the Internal Revenue Code minus national level foreign taxes to <br/>
<a id="pl.3.27"></a><var>3.27</var>the extent they exceed the federal foreign tax credit;<br/>
<a id="pl.3.28"></a><var>3.28</var>    (8) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.3.29"></a><var>3.29</var>addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case <br/>
<a id="pl.3.30"></a><var>3.30</var>of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth <br/>
<a id="pl.3.31"></a><var>3.31</var>of the delayed depreciation. For purposes of this clause, "delayed depreciation" means <br/>
<a id="pl.3.32"></a><var>3.32</var>the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or <br/>
<a id="pl.3.33"></a><var>3.33</var>subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the <br/>
<a id="pl.3.34"></a><var>3.34</var>positive value of any net operating loss under section 172 of the Internal Revenue Code <br/>
<a id="pl.3.35"></a><var>3.35</var>generated for the tax year of the addition. The resulting delayed depreciation cannot be <br/>
<a id="pl.3.36"></a><var>3.36</var>less than zero;<br/>
<a id="pl.4.1"></a><var>4.1</var>    (9) job opportunity building zone income as provided under section 
         <statute_ref>469.316</statute_ref>;<br/>
<a id="pl.4.2"></a><var>4.2</var>    (10) to the extent included in federal taxable income, the amount of compensation <br/>
<a id="pl.4.3"></a><var>4.3</var>paid to members of the Minnesota National Guard or other reserve components of the <br/>
<a id="pl.4.4"></a><var>4.4</var>United States military for active service performed in Minnesota, excluding compensation <br/>
<a id="pl.4.5"></a><var>4.5</var>for services performed under the Active Guard Reserve (AGR) program. For purposes of <br/>
<a id="pl.4.6"></a><var>4.6</var>this clause, "active service" means (i) state active service as defined in section 
         <statute_ref>190.05, <br/>
<a id="pl.4.7"></a><var>4.7</var>subdivision 5a
         </statute_ref>, clause (1); (ii) federally funded state active service as defined in section <br/>
<statute_ref><a id="pl.4.8"></a><var>4.8</var>190.05, subdivision 5b
         </statute_ref>; or (iii) federal active service as defined in section 
         <statute_ref>190.05, <br/>
<a id="pl.4.9"></a><var>4.9</var>subdivision 5c
         </statute_ref>, but "active service" excludes service performed in accordance with section <br/>
<statute_ref><a id="pl.4.10"></a><var>4.10</var>190.08, subdivision 3
         </statute_ref>;<br/>
<a id="pl.4.11"></a><var>4.11</var>    (11) to the extent included in federal taxable income, the amount of compensation <br/>
<a id="pl.4.12"></a><var>4.12</var>paid to Minnesota residents who are members of the armed forces of the United States or <br/>
<a id="pl.4.13"></a><var>4.13</var>United Nations for active duty performed outside Minnesota under United States Code, <br/>
<a id="pl.4.14"></a><var>4.14</var>title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of <br/>
<a id="pl.4.15"></a><var>4.15</var>the United Nations;<br/>
<a id="pl.4.16"></a><var>4.16</var>    (12) an amount, not to exceed $10,000, equal to qualified expenses related to a <br/>
<a id="pl.4.17"></a><var>4.17</var>qualified donor's donation, while living, of one or more of the qualified donor's organs <br/>
<a id="pl.4.18"></a><var>4.18</var>to another person for human organ transplantation. For purposes of this clause, "organ" <br/>
<a id="pl.4.19"></a><var>4.19</var>means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; <br/>
<a id="pl.4.20"></a><var>4.20</var>"human organ transplantation" means the medical procedure by which transfer of a human <br/>
<a id="pl.4.21"></a><var>4.21</var>organ is made from the body of one person to the body of another person; "qualified <br/>
<a id="pl.4.22"></a><var>4.22</var>expenses" means unreimbursed expenses for both the individual and the qualified donor <br/>
<a id="pl.4.23"></a><var>4.23</var>for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses <br/>
<a id="pl.4.24"></a><var>4.24</var>may be subtracted under this clause only once; and "qualified donor" means the individual <br/>
<a id="pl.4.25"></a><var>4.25</var>or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An <br/>
<a id="pl.4.26"></a><var>4.26</var>individual may claim the subtraction in this clause for each instance of organ donation for <br/>
<a id="pl.4.27"></a><var>4.27</var>transplantation during the taxable year in which the qualified expenses occur;<br/>
<a id="pl.4.28"></a><var>4.28</var>    (13) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.4.29"></a><var>4.29</var>addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a <br/>
<a id="pl.4.30"></a><var>4.30</var>shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the <br/>
<a id="pl.4.31"></a><var>4.31</var>addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the <br/>
<a id="pl.4.32"></a><var>4.32</var>case of a shareholder of a corporation that is an S corporation, minus the positive value of <br/>
<a id="pl.4.33"></a><var>4.33</var>any net operating loss under section 172 of the Internal Revenue Code generated for the <br/>
<a id="pl.4.34"></a><var>4.34</var>tax year of the addition. If the net operating loss exceeds the addition for the tax year, a <br/>
<a id="pl.4.35"></a><var>4.35</var>subtraction is not allowed under this clause;<br/>
<a id="pl.5.1"></a><var>5.1</var>    (14) to the extent included in federal taxable income, compensation paid to a service <br/>
<a id="pl.5.2"></a><var>5.2</var>member as defined in United States Code, title 10, section 101(a)(5), for military service <br/>
<a id="pl.5.3"></a><var>5.3</var>as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2);<br/>
<a id="pl.5.4"></a><var>5.4</var>    (15) international economic development zone income as provided under section <br/>
<statute_ref><a id="pl.5.5"></a><var>5.5</var>469.325
         </statute_ref>;<br/>
<a id="pl.5.6"></a><var>5.6</var>    (16) to the extent included in federal taxable income, the amount of national service <br/>
<a id="pl.5.7"></a><var>5.7</var>educational awards received from the National Service Trust under United States Code, <br/>
<a id="pl.5.8"></a><var>5.8</var>title 42, sections 12601 to 12604, for service in an approved Americorps National Service <br/>
<a id="pl.5.9"></a><var>5.9</var>program; and<br/>
<a id="pl.5.10"></a><var>5.10</var>(17) to the extent included in federal taxable income, discharge of indebtedness <br/>
<a id="pl.5.11"></a><var>5.11</var>income resulting from reacquisition of business indebtedness included in federal taxable <br/>
<a id="pl.5.12"></a><var>5.12</var>income under section 108(i) of the Internal Revenue Code. This subtraction applies only <br/>
<a id="pl.5.13"></a><var>5.13</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.5.14"></a><var>5.14</var>addition under section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (16); and<br/>
<a id="pl.5.15"></a><var>5.15</var>(18) to the extent included in federal taxable income, a percentage of compensation <br/>
<a id="pl.5.16"></a><var>5.16</var>received from a pension or other retirement pay from the federal government for service in <br/>
<a id="pl.5.17"></a><var>5.17</var>the military, as computed under United States Code, title 10, sections 1401 to 1414, 1447 <br/>
<a id="pl.5.18"></a><var>5.18</var>to 1455, and 12733, as follows:<br/>
<a id="pl.5.19"></a><var>5.19</var>(i) for taxable years beginning after December 31, 2010, and before January 1, <br/>
<a id="pl.5.20"></a><var>5.20</var>2012, the percentage is 20 percent;<br/>
<a id="pl.5.21"></a><var>5.21</var>(ii) for taxable years beginning after December 31, 2011, and before January 1, <br/>
<a id="pl.5.22"></a><var>5.22</var>2013, the percentage is 35 percent; and<br/>
<a id="pl.5.23"></a><var>5.23</var>(iii) for taxable years beginning after December 31, 2012, the percentage is 55 <br/>
<a id="pl.5.24"></a><var>5.24</var>percent.<br/>
<a id="pl.5.25"></a><var>5.25</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.5.26"></a><var>5.26</var>December 31, 2010.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.5.27"></a><var>5.27</var>    Sec. 3. Minnesota Statutes 2010, section 290.0674, subdivision 1, is amended to read:<br/>
<a id="pl.5.28"></a><var>5.28</var>    Subdivision 1. <b>Credit allowed.</b> An individual is allowed a credit against the <br/>
<a id="pl.5.29"></a><var>5.29</var>tax imposed by this chapter in an amount equal to 75 percent of the amount paid for <br/>
<a id="pl.5.30"></a><var>5.30</var>education-related expenses for a qualifying child in kindergarten through grade 12. For <br/>
<a id="pl.5.31"></a><var>5.31</var>purposes of this section, "education-related expenses" means:<br/>
<a id="pl.5.32"></a><var>5.32</var>(1) fees or tuition for instruction by an instructor under section 
         <statute_ref>120A.22, subdivision <br/>
<a id="pl.5.33"></a><var>5.33</var>10
         </statute_ref>, clause (1), (2), (3), (4), or (5), or a member of the Minnesota Music Teachers <br/>
<a id="pl.5.34"></a><var>5.34</var>Association, and who is not a lineal ancestor or sibling of the dependent for instruction <br/>
<a id="pl.5.35"></a><var>5.35</var>outside the regular school day or school year, including tutoring, driver's education <br/>
<a id="pl.6.1"></a><var>6.1</var>offered as part of school curriculum, regardless of whether it is taken from a public or <br/>
<a id="pl.6.2"></a><var>6.2</var>private entity or summer camps, in grade or age appropriate curricula that supplement <br/>
<a id="pl.6.3"></a><var>6.3</var>curricula and instruction available during the regular school year, that assists a dependent <br/>
<a id="pl.6.4"></a><var>6.4</var>to improve knowledge of core curriculum areas or to expand knowledge and skills under <br/>
<a id="pl.6.5"></a><var>6.5</var>the required academic standards under section 
         <statute_ref>120B.021, subdivision 1</statute_ref>, and the elective <br/>
<a id="pl.6.6"></a><var>6.6</var>standard under section 
         <statute_ref>120B.022, subdivision 1</statute_ref>, clause (2), and that do not include the <br/>
<a id="pl.6.7"></a><var>6.7</var>teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such <br/>
<a id="pl.6.8"></a><var>6.8</var>tenets, doctrines, or worship;<br/>
<a id="pl.6.9"></a><var>6.9</var>(2) expenses for textbooks, including books and other instructional materials and <br/>
<a id="pl.6.10"></a><var>6.10</var>equipment purchased or leased for use in elementary and secondary schools in teaching <br/>
<a id="pl.6.11"></a><var>6.11</var>only those subjects legally and commonly taught in public elementary and secondary <br/>
<a id="pl.6.12"></a><var>6.12</var>schools in this state. "Textbooks" does not include instructional books and materials <br/>
<a id="pl.6.13"></a><var>6.13</var>used in the teaching of religious tenets, doctrines, or worship, the purpose of which is <br/>
<a id="pl.6.14"></a><var>6.14</var>to instill such tenets, doctrines, or worship, nor does it include books or materials for <br/>
<a id="pl.6.15"></a><var>6.15</var>extracurricular activities including sporting events, musical or dramatic events, speech <br/>
<a id="pl.6.16"></a><var>6.16</var>activities, driver's education, or similar programs;<br/>
<a id="pl.6.17"></a><var>6.17</var>(3) a maximum expense of $200 per family for personal computer hardware, <br/>
<a id="pl.6.18"></a><var>6.18</var>excluding single purpose processors, and educational software that assists a dependent to <br/>
<a id="pl.6.19"></a><var>6.19</var>improve knowledge of core curriculum areas or to expand knowledge and skills under <br/>
<a id="pl.6.20"></a><var>6.20</var>the required academic standards under section 
         <statute_ref>120B.021, subdivision 1</statute_ref>, and the elective <br/>
<a id="pl.6.21"></a><var>6.21</var>standard under section 
         <statute_ref>120B.022, subdivision 1</statute_ref>, clause (2), purchased for use in the <br/>
<a id="pl.6.22"></a><var>6.22</var>taxpayer's home and not used in a trade or business regardless of whether the computer is <br/>
<a id="pl.6.23"></a><var>6.23</var>required by the dependent's school; and<br/>
<a id="pl.6.24"></a><var>6.24</var>(4) the amount paid to others for tuition and transportation of a qualifying child <br/>
<a id="pl.6.25"></a><var>6.25</var>attending an elementary or secondary school situated in Minnesota, North Dakota, South <br/>
<a id="pl.6.26"></a><var>6.26</var>Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's <br/>
<a id="pl.6.27"></a><var>6.27</var>compulsory attendance laws, which is not operated for profit, and which adheres to the <br/>
<a id="pl.6.28"></a><var>6.28</var>provisions of the Civil Rights Act of 1964 and chapter 363A.<br/>
<a id="pl.6.29"></a><var>6.29</var>For purposes of this section, "qualifying child" has the meaning given in section <br/>
<a id="pl.6.30"></a><var>6.30</var>32(c)(3) of the Internal Revenue Code.<br/>
<a id="pl.6.31"></a><var>6.31</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.6.32"></a><var>6.32</var>December 31, 2010.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.6.33"></a><var>6.33</var>    Sec. 4. Minnesota Statutes 2010, section 290.081, is amended to read:<br/>
<a id="pl.6.34"></a><var>6.34</var><b>290.081 INCOME OF NONRESIDENTS, RECIPROCITY.</b><br/>
<a id="pl.7.1"></a><var>7.1</var>    Subdivision 1. <b>Reciprocity with other states.</b> (a) The compensation received for <br/>
<a id="pl.7.2"></a><var>7.2</var>the performance of personal or professional services within this state by an individual <br/>
<a id="pl.7.3"></a><var>7.3</var>whose residence, place of abode, and place customarily returned to at least once a month <br/>
<a id="pl.7.4"></a><var>7.4</var>is in another state, shall be excluded from gross income to the extent such compensation is <br/>
<a id="pl.7.5"></a><var>7.5</var>subject to an income tax imposed by the state of residence; provided that such state allows <br/>
<a id="pl.7.6"></a><var>7.6</var>a similar exclusion of compensation received by residents of Minnesota for services <br/>
<a id="pl.7.7"></a><var>7.7</var>performed therein.<br/>
<a id="pl.7.8"></a><var>7.8</var>(b) When it is deemed to be in the best interests of the people of this state, the <br/>
<a id="pl.7.9"></a><var>7.9</var>commissioner may determine that the provisions of paragraph (a) shall not apply as they <br/>
<a id="pl.7.10"></a><var>7.10</var>relate to all states, except Wisconsin. The provisions of paragraph (a) apply with respect <br/>
<a id="pl.7.11"></a><var>7.11</var>to Wisconsin only for taxable years in which a reciprocity agreement with Wisconsin is <br/>
<a id="pl.7.12"></a><var>7.12</var>in effect as provided in this section. As long as the provisions of paragraph (a) apply <br/>
<a id="pl.7.13"></a><var>7.13</var>between Minnesota and Wisconsin, the provisions of paragraph (a) shall apply to any <br/>
<a id="pl.7.14"></a><var>7.14</var>individual who is domiciled in Wisconsin.<br/>
<a id="pl.7.15"></a><var>7.15</var>(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota <br/>
<a id="pl.7.16"></a><var>7.16</var>residents which would have been paid Wisconsin without paragraph (a) exceeds the <br/>
<a id="pl.7.17"></a><var>7.17</var>Minnesota tax on Wisconsin residents which would have been paid Minnesota without <br/>
<a id="pl.7.18"></a><var>7.18</var>paragraph (a), or vice versa, then the state with the net revenue loss resulting from <br/>
<a id="pl.7.19"></a><var>7.19</var>paragraph (a) must be compensated by the other state as provided in the agreement under <br/>
<a id="pl.7.20"></a><var>7.20</var>paragraph (d). This provision shall be effective for all years beginning after December 31, <br/>
<a id="pl.7.21"></a><var>7.21</var>1972. The data used for computing the loss to either state shall be determined on or before <br/>
<a id="pl.7.22"></a><var>7.22</var>September 30 of the year following the close of the previous calendar year.<br/>
<a id="pl.7.23"></a><var>7.23</var>(d) Interest is payable on all amounts calculated under paragraph (c) relating to <br/>
<a id="pl.7.24"></a><var>7.24</var>taxable years beginning after December 31, 2000, and before January 1, 2010. Interest <br/>
<a id="pl.7.25"></a><var>7.25</var>accrues from July 1 of the taxable year. <br/>
<a id="pl.7.26"></a><var>7.26</var>(e) The commissioner of revenue is authorized to enter into agreements reciprocity <br/>
<a id="pl.7.27"></a><var>7.27</var>agreement with the state of Wisconsin specifying must specify the compensation required <br/>
<a id="pl.7.28"></a><var>7.28</var>under paragraph (b), the one or more reciprocity payment due date, dates for the revenue <br/>
<a id="pl.7.29"></a><var>7.29</var>loss relating to each taxable year, with one or more estimated payment due dates in the <br/>
<a id="pl.7.30"></a><var>7.30</var>same fiscal year in which the revenue loss occurred, and a final payment in the following <br/>
<a id="pl.7.31"></a><var>7.31</var>fiscal year, conditions constituting delinquency, interest rates, and a method for computing <br/>
<a id="pl.7.32"></a><var>7.32</var>interest due. Interest is payable from July 1 of the taxable year on final payments made in <br/>
<a id="pl.7.33"></a><var>7.33</var>the following fiscal year. Calculation of compensation under the agreement must specify <br/>
<a id="pl.7.34"></a><var>7.34</var>if the revenue loss is determined before or after the allowance of each state's credit for <br/>
<a id="pl.7.35"></a><var>7.35</var>taxes paid to the other state.<br/>
<a id="pl.8.1"></a><var>8.1</var>(e) (f) If an agreement cannot be reached as to the amount of the loss, the <br/>
<a id="pl.8.2"></a><var>8.2</var>commissioner of revenue and the taxing official of the state of Wisconsin shall each <br/>
<a id="pl.8.3"></a><var>8.3</var>appoint a member of a board of arbitration and these members shall appoint the third <br/>
<a id="pl.8.4"></a><var>8.4</var>member of the board. The board shall select one of its members as chair. Such board may <br/>
<a id="pl.8.5"></a><var>8.5</var>administer oaths, take testimony, subpoena witnesses, and require their attendance, require <br/>
<a id="pl.8.6"></a><var>8.6</var>the production of books, papers and documents, and hold hearings at such places as are <br/>
<a id="pl.8.7"></a><var>8.7</var>deemed necessary. The board shall then make a determination as to the amount to be paid <br/>
<a id="pl.8.8"></a><var>8.8</var>the other state which determination shall be final and conclusive.<br/>
<a id="pl.8.9"></a><var>8.9</var>(f) (g) The commissioner may furnish copies of returns, reports, or other information <br/>
<a id="pl.8.10"></a><var>8.10</var>to the taxing official of the state of Wisconsin, a member of the board of arbitration, or a <br/>
<a id="pl.8.11"></a><var>8.11</var>consultant under joint contract with the states of Minnesota and Wisconsin for the purpose <br/>
<a id="pl.8.12"></a><var>8.12</var>of making a determination as to the amount to be paid the other state under the provisions <br/>
<a id="pl.8.13"></a><var>8.13</var>of this section. Prior to the release of any information under the provisions of this section, <br/>
<a id="pl.8.14"></a><var>8.14</var>the person to whom the information is to be released shall sign an agreement which <br/>
<a id="pl.8.15"></a><var>8.15</var>provides that the person will protect the confidentiality of the returns and information <br/>
<a id="pl.8.16"></a><var>8.16</var>revealed thereby to the extent that it is protected under the laws of the state of Minnesota.<br/>
<a id="pl.8.17"></a><var>8.17</var>(h) Any reciprocity agreement entered into under this section continues in effect <br/>
<a id="pl.8.18"></a><var>8.18</var>until terminated by Minnesota or Wisconsin law. The commissioner may agree to modify <br/>
<a id="pl.8.19"></a><var>8.19</var>the timing or method of calculating the state payments to be made under the agreement, <br/>
<a id="pl.8.20"></a><var>8.20</var>consistent with the requirements of paragraphs (c) and (e), but may not terminate the <br/>
<a id="pl.8.21"></a><var>8.21</var>agreement.<br/>
<a id="pl.8.22"></a><var>8.22</var>    Subd. 2. <b>New reciprocity agreement with Wisconsin.</b> The commissioner may <br/>
<a id="pl.8.23"></a><var>8.23</var>not enter into an income tax reciprocity agreement with Wisconsin under this section <br/>
<a id="pl.8.24"></a><var>8.24</var>until after Wisconsin has paid in full, with interest, the amount due to Minnesota under <br/>
<a id="pl.8.25"></a><var>8.25</var>the income tax reciprocity agreement in full effect for taxable years beginning before <br/>
<a id="pl.8.26"></a><var>8.26</var>January 1, 2010. The commissioner of revenue is directed to initiate negotiations with <br/>
<a id="pl.8.27"></a><var>8.27</var>the secretary of revenue of Wisconsin, with the objective of entering into an income <br/>
<a id="pl.8.28"></a><var>8.28</var>tax reciprocity agreement effective for tax years beginning after December 31, 2011. <br/>
<a id="pl.8.29"></a><var>8.29</var>The agreement must satisfy the conditions of subdivision 1, with one or more estimated <br/>
<a id="pl.8.30"></a><var>8.30</var>payment due dates and a final payment due date specified so that the state with a net <br/>
<a id="pl.8.31"></a><var>8.31</var>revenue loss as a result of the agreement receives estimated payments from the other state, <br/>
<a id="pl.8.32"></a><var>8.32</var>in the same fiscal year as that in which the net revenue loss occurred and a final payment <br/>
<a id="pl.8.33"></a><var>8.33</var>with interest in the following fiscal year.<br/>
<a id="pl.8.34"></a><var>8.34</var><b>EFFECTIVE DATE.</b>Subdivision 2 is effective the day following final enactment. <br/>
<a id="pl.8.35"></a><var>8.35</var>The changes to subdivision 1 are effective for taxable years beginning after December 31 <br/>
<a id="pl.8.36"></a><var>8.36</var>of the year of the agreement, contingent upon agreement from the state of Wisconsin to a <br/>
<a id="pl.9.1"></a><var>9.1</var>reciprocity arrangement in which estimated payments are made in the same fiscal year in <br/>
<a id="pl.9.2"></a><var>9.2</var>which a change in revenue occurs, and a final payment is made in the following fiscal year.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.9.3"></a><var>9.3</var>    Sec. 5. Minnesota Statutes 2010, section 290.091, subdivision 2, is amended to read:<br/>
<a id="pl.9.4"></a><var>9.4</var>    Subd. 2. <b>Definitions.</b> For purposes of the tax imposed by this section, the following <br/>
<a id="pl.9.5"></a><var>9.5</var>terms have the meanings given:<br/>
<a id="pl.9.6"></a><var>9.6</var>    (a) "Alternative minimum taxable income" means the sum of the following for <br/>
<a id="pl.9.7"></a><var>9.7</var>the taxable year:<br/>
<a id="pl.9.8"></a><var>9.8</var>    (1) the taxpayer's federal alternative minimum taxable income as defined in section <br/>
<a id="pl.9.9"></a><var>9.9</var>55(b)(2) of the Internal Revenue Code;<br/>
<a id="pl.9.10"></a><var>9.10</var>    (2) the taxpayer's itemized deductions allowed in computing federal alternative <br/>
<a id="pl.9.11"></a><var>9.11</var>minimum taxable income, but excluding:<br/>
<a id="pl.9.12"></a><var>9.12</var>    (i) the charitable contribution deduction under section 170 of the Internal Revenue <br/>
<a id="pl.9.13"></a><var>9.13</var>Code;<br/>
<a id="pl.9.14"></a><var>9.14</var>    (ii) the medical expense deduction;<br/>
<a id="pl.9.15"></a><var>9.15</var>    (iii) the casualty, theft, and disaster loss deduction; and<br/>
<a id="pl.9.16"></a><var>9.16</var>    (iv) the impairment-related work expenses of a disabled person;<br/>
<a id="pl.9.17"></a><var>9.17</var>    (3) for depletion allowances computed under section 613A(c) of the Internal <br/>
<a id="pl.9.18"></a><var>9.18</var>Revenue Code, with respect to each property (as defined in section 614 of the Internal <br/>
<a id="pl.9.19"></a><var>9.19</var>Revenue Code), to the extent not included in federal alternative minimum taxable income, <br/>
<a id="pl.9.20"></a><var>9.20</var>the excess of the deduction for depletion allowable under section 611 of the Internal <br/>
<a id="pl.9.21"></a><var>9.21</var>Revenue Code for the taxable year over the adjusted basis of the property at the end of the <br/>
<a id="pl.9.22"></a><var>9.22</var>taxable year (determined without regard to the depletion deduction for the taxable year);<br/>
<a id="pl.9.23"></a><var>9.23</var>    (4) to the extent not included in federal alternative minimum taxable income, the <br/>
<a id="pl.9.24"></a><var>9.24</var>amount of the tax preference for intangible drilling cost under section 57(a)(2) of the <br/>
<a id="pl.9.25"></a><var>9.25</var>Internal Revenue Code determined without regard to subparagraph (E);<br/>
<a id="pl.9.26"></a><var>9.26</var>    (5) to the extent not included in federal alternative minimum taxable income, the <br/>
<a id="pl.9.27"></a><var>9.27</var>amount of interest income as provided by section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (1); and<br/>
<a id="pl.9.28"></a><var>9.28</var>    (6) the amount of addition required by section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clauses (7) <br/>
<a id="pl.9.29"></a><var>9.29</var>to (9), (12), (13), (16), and (17);<br/>
<a id="pl.9.30"></a><var>9.30</var>    less the sum of the amounts determined under the following:<br/>
<a id="pl.9.31"></a><var>9.31</var>    (1) interest income as defined in section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clause (1);<br/>
<a id="pl.9.32"></a><var>9.32</var>    (2) an overpayment of state income tax as provided by section 
         <statute_ref>290.01, subdivision <br/>
<a id="pl.9.33"></a><var>9.33</var>19b
         </statute_ref>, clause (2), to the extent included in federal alternative minimum taxable income;<br/>
<a id="pl.9.34"></a><var>9.34</var>    (3) the amount of investment interest paid or accrued within the taxable year on <br/>
<a id="pl.9.35"></a><var>9.35</var>indebtedness to the extent that the amount does not exceed net investment income, as <br/>
<a id="pl.10.1"></a><var>10.1</var>defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include <br/>
<a id="pl.10.2"></a><var>10.2</var>amounts deducted in computing federal adjusted gross income; and<br/>
<a id="pl.10.3"></a><var>10.3</var>    (4) amounts subtracted from federal taxable income as provided by section 
         <statute_ref>290.01, <br/>
<a id="pl.10.4"></a><var>10.4</var>subdivision 19b
         </statute_ref>, clauses (6), (8) to (15), and (17), and (18).<br/>
<a id="pl.10.5"></a><var>10.5</var>    In the case of an estate or trust, alternative minimum taxable income must be <br/>
<a id="pl.10.6"></a><var>10.6</var>computed as provided in section 59(c) of the Internal Revenue Code.<br/>
<a id="pl.10.7"></a><var>10.7</var>    (b) "Investment interest" means investment interest as defined in section 163(d)(3) <br/>
<a id="pl.10.8"></a><var>10.8</var>of the Internal Revenue Code.<br/>
<a id="pl.10.9"></a><var>10.9</var>    (c) "Net minimum tax" means the minimum tax imposed by this section.<br/>
<a id="pl.10.10"></a><var>10.10</var>    (d) "Regular tax" means the tax that would be imposed under this chapter (without <br/>
<a id="pl.10.11"></a><var>10.11</var>regard to this section and section 290.032), reduced by the sum of the nonrefundable <br/>
<a id="pl.10.12"></a><var>10.12</var>credits allowed under this chapter.<br/>
<a id="pl.10.13"></a><var>10.13</var>    (e) "Tentative minimum tax" equals 6.4 percent of alternative minimum taxable <br/>
<a id="pl.10.14"></a><var>10.14</var>income after subtracting the exemption amount determined under subdivision 3.<br/>
<a id="pl.10.15"></a><var>10.15</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.10.16"></a><var>10.16</var>December 31, 2010.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.10.17"></a><var>10.17</var>    Sec. 6. <b>[290.433] BUDGET RESERVE FUND CHECKOFF.</b><br/>
<a id="pl.10.18"></a><var>10.18</var>    (a) An individual who files an income tax return or property tax refund claim form <br/>
<a id="pl.10.19"></a><var>10.19</var>may designate on the original return that $1 or more shall be added to the tax or deducted <br/>
<a id="pl.10.20"></a><var>10.20</var>from the refund that would otherwise be payable by or to that individual and paid into the <br/>
<a id="pl.10.21"></a><var>10.21</var>general fund.<br/>
<a id="pl.10.22"></a><var>10.22</var>    (b) All amounts designated by individuals under paragraph (a) must be deposited in <br/>
<a id="pl.10.23"></a><var>10.23</var>the state treasury and credited to the budget reserve established under section 16A.152, <br/>
<a id="pl.10.24"></a><var>10.24</var>subdivision 1a.<br/>
<a id="pl.10.25"></a><var>10.25</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.10.26"></a><var>10.26</var>December 31, 2010.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.10.27"></a><var>10.27</var>    Sec. 7. Minnesota Statutes 2010, section 291.005, subdivision 1, is amended to read:<br/>
<a id="pl.10.28"></a><var>10.28</var>    Subdivision 1. <b>Scope.</b> Unless the context otherwise clearly requires, the following <br/>
<a id="pl.10.29"></a><var>10.29</var>terms used in this chapter shall have the following meanings:<br/>
<a id="pl.10.30"></a><var>10.30</var>    (1) "Commissioner" means the commissioner of revenue or any person to whom the <br/>
<a id="pl.10.31"></a><var>10.31</var>commissioner has delegated functions under this chapter.<br/>
<a id="pl.11.1"></a><var>11.1</var>    (2) "Federal gross estate" means the gross estate of a decedent as required to be <br/>
<a id="pl.11.2"></a><var>11.2</var>valued and otherwise determined for federal estate tax purposes under the Internal <br/>
<a id="pl.11.3"></a><var>11.3</var>Revenue Code.<br/>
<a id="pl.11.4"></a><var>11.4</var>    (3) "Internal Revenue Code" means the United States Internal Revenue Code of <br/>
<a id="pl.11.5"></a><var>11.5</var>1986, as amended through March 18, 2010, but without regard to the provisions of <br/>
<a id="pl.11.6"></a><var>11.6</var>sections 501 and 901 of Public Law 107-16.<br/>
<a id="pl.11.7"></a><var>11.7</var>    (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as <br/>
<a id="pl.11.8"></a><var>11.8</var>defined by section 2011(b)(3) of the Internal Revenue Code, increased by plus<br/>
<a id="pl.11.9"></a><var>11.9</var>(i) the amount of deduction for state death taxes allowed under section 2058 of <br/>
<a id="pl.11.10"></a><var>11.10</var>the Internal Revenue Code; less<br/>
<a id="pl.11.11"></a><var>11.11</var>(ii) (A) the value of qualified small business property under section 291.03, <br/>
<a id="pl.11.12"></a><var>11.12</var>subdivision 9, and the value of qualified farm property under section 291.03, subdivision <br/>
<a id="pl.11.13"></a><var>11.13</var>10, or (B) $4,000,000, whichever is less.<br/>
<a id="pl.11.14"></a><var>11.14</var>    (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a) <br/>
<a id="pl.11.15"></a><var>11.15</var>excluding therefrom any property included therein which has its situs outside Minnesota, <br/>
<a id="pl.11.16"></a><var>11.16</var>and (b) including therein any property omitted from the federal gross estate which is <br/>
<a id="pl.11.17"></a><var>11.17</var>includable therein, has its situs in Minnesota, and was not disclosed to federal taxing <br/>
<a id="pl.11.18"></a><var>11.18</var>authorities.<br/>
<a id="pl.11.19"></a><var>11.19</var>    (6) "Nonresident decedent" means an individual whose domicile at the time of <br/>
<a id="pl.11.20"></a><var>11.20</var>death was not in Minnesota.<br/>
<a id="pl.11.21"></a><var>11.21</var>    (7) "Personal representative" means the executor, administrator or other person <br/>
<a id="pl.11.22"></a><var>11.22</var>appointed by the court to administer and dispose of the property of the decedent. If there <br/>
<a id="pl.11.23"></a><var>11.23</var>is no executor, administrator or other person appointed, qualified, and acting within this <br/>
<a id="pl.11.24"></a><var>11.24</var>state, then any person in actual or constructive possession of any property having a situs in <br/>
<a id="pl.11.25"></a><var>11.25</var>this state which is included in the federal gross estate of the decedent shall be deemed <br/>
<a id="pl.11.26"></a><var>11.26</var>to be a personal representative to the extent of the property and the Minnesota estate tax <br/>
<a id="pl.11.27"></a><var>11.27</var>due with respect to the property.<br/>
<a id="pl.11.28"></a><var>11.28</var>    (8) "Resident decedent" means an individual whose domicile at the time of death <br/>
<a id="pl.11.29"></a><var>11.29</var>was in Minnesota.<br/>
<a id="pl.11.30"></a><var>11.30</var>    (9) "Situs of property" means, with respect to real property, the state or country in <br/>
<a id="pl.11.31"></a><var>11.31</var>which it is located; with respect to tangible personal property, the state or country in which <br/>
<a id="pl.11.32"></a><var>11.32</var>it was normally kept or located at the time of the decedent's death; and with respect to <br/>
<a id="pl.11.33"></a><var>11.33</var>intangible personal property, the state or country in which the decedent was domiciled <br/>
<a id="pl.11.34"></a><var>11.34</var>at death.<br/>
<a id="pl.11.35"></a><var>11.35</var><b>EFFECTIVE DATE.</b>This section is effective for decedents dying after December <br/>
<a id="pl.11.36"></a><var>11.36</var>31, 2010.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.12.1"></a><var>12.1</var>    Sec. 8. Minnesota Statutes 2010, section 291.03, subdivision 1, is amended to read:<br/>
<a id="pl.12.2"></a><var>12.2</var>    Subdivision 1. <b>Tax amount.</b> (a) The tax imposed shall be an amount equal to the <br/>
<a id="pl.12.3"></a><var>12.3</var>proportion of the maximum credit for state death taxes computed under section 2011 <br/>
<a id="pl.12.4"></a><var>12.4</var>of the Internal Revenue Code, but using Minnesota adjusted taxable estate instead of <br/>
<a id="pl.12.5"></a><var>12.5</var>federal adjusted taxable estate, as the Minnesota gross estate bears to the value of the <br/>
<a id="pl.12.6"></a><var>12.6</var>federal gross estate.<br/>
<a id="pl.12.7"></a><var>12.7</var>    (b) The tax determined under this subdivision must not be greater than the sum of <br/>
<a id="pl.12.8"></a><var>12.8</var>the following amounts multiplied by a fraction, the numerator of which is the Minnesota <br/>
<a id="pl.12.9"></a><var>12.9</var>gross estate and the denominator of which is the federal gross estate:<br/>
<a id="pl.12.10"></a><var>12.10</var>    (1) the rates and brackets under section 2001(c) of the Internal Revenue Code <br/>
<a id="pl.12.11"></a><var>12.11</var>multiplied by the sum of:<br/>
<a id="pl.12.12"></a><var>12.12</var>    (i) the taxable estate, as defined under section 2051 of the Internal Revenue Code; <br/>
<a id="pl.12.13"></a><var>12.13</var>plus<br/>
<a id="pl.12.14"></a><var>12.14</var>    (ii) adjusted taxable gifts, as defined in section 2001(b) of the Internal Revenue <br/>
<a id="pl.12.15"></a><var>12.15</var>Code; less<br/>
<a id="pl.12.16"></a><var>12.16</var>(iii) the lesser of (A) the sum of the value of qualified small business property <br/>
<a id="pl.12.17"></a><var>12.17</var>under subdivision 9, and the value of qualified farm property under subdivision 10, <br/>
<a id="pl.12.18"></a><var>12.18</var>or (B) $4,000,000; less<br/>
<a id="pl.12.19"></a><var>12.19</var>    (2) the amount of tax allowed under section 2001(b)(2) of the Internal Revenue <br/>
<a id="pl.12.20"></a><var>12.20</var>Code; and less<br/>
<a id="pl.12.21"></a><var>12.21</var>    (3) the federal credit allowed under section 2010 of the Internal Revenue Code.<br/>
<a id="pl.12.22"></a><var>12.22</var>    (c) For purposes of this subdivision, "Internal Revenue Code" means the Internal <br/>
<a id="pl.12.23"></a><var>12.23</var>Revenue Code of 1986, as amended through December 31, 2000.<br/>
<a id="pl.12.24"></a><var>12.24</var><b>EFFECTIVE DATE.</b>This section is effective for decedents dying after December <br/>
<a id="pl.12.25"></a><var>12.25</var>31, 2010.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.12.26"></a><var>12.26</var>    Sec. 9. Minnesota Statutes 2010, section 291.03, is amended by adding a subdivision <br/>
<a id="pl.12.27"></a><var>12.27</var>to read:<br/>
<a id="pl.12.28"></a><var>12.28</var>    Subd. 8. <b>Definitions.</b> (a) For purposes of this section, the following terms have the <br/>
<a id="pl.12.29"></a><var>12.29</var>meanings given in this subdivision.<br/>
<a id="pl.12.30"></a><var>12.30</var>(b) "Family member" means a family member as defined in section 2032A(e)(2) of <br/>
<a id="pl.12.31"></a><var>12.31</var>the Internal Revenue Code.<br/>
<a id="pl.12.32"></a><var>12.32</var>(c)  "Qualified heir" means a family member who acquired qualified property from <br/>
<a id="pl.12.33"></a><var>12.33</var>the decedent and satisfies the requirement under subdivision 9, clause (6), or subdivision <br/>
<a id="pl.12.34"></a><var>12.34</var>10, clause (4), for the property.<br/>
<a id="pl.13.1"></a><var>13.1</var>(d)  "Qualified property" means qualified small businesss property under subdivision <br/>
<a id="pl.13.2"></a><var>13.2</var>9 and qualified farm property under subdivision 10.<br/>
<a id="pl.13.3"></a><var>13.3</var><b>EFFECTIVE DATE.</b>This section is effective for decedents dying after December <br/>
<a id="pl.13.4"></a><var>13.4</var>31, 2010.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.13.5"></a><var>13.5</var>    Sec. 10. Minnesota Statutes 2010, section 291.03, is amended by adding a subdivision <br/>
<a id="pl.13.6"></a><var>13.6</var>to read:<br/>
<a id="pl.13.7"></a><var>13.7</var>    Subd. 9. <b>Qualified small business property.</b> Property satisfying all of the following <br/>
<a id="pl.13.8"></a><var>13.8</var>requirements is qualified small business property:<br/>
<a id="pl.13.9"></a><var>13.9</var>(1) The value of the property was included in the federal adjusted taxable estate.<br/>
<a id="pl.13.10"></a><var>13.10</var>(2) The property consists of the assets of a trade or business or shares of stock or <br/>
<a id="pl.13.11"></a><var>13.11</var>other ownership interests in a corporation or other entity engaged in a trade or business. <br/>
<a id="pl.13.12"></a><var>13.12</var>The decedent or the decedent's spouse must have materially participated in the trade or <br/>
<a id="pl.13.13"></a><var>13.13</var>business within the meaning of section 469 of the Internal Revenue Code during the <br/>
<a id="pl.13.14"></a><var>13.14</var>taxable year that ended before the date of the decedent's death. Shares of stock in a <br/>
<a id="pl.13.15"></a><var>13.15</var>corporation or an ownership interest in another type of entity do not qualify under this <br/>
<a id="pl.13.16"></a><var>13.16</var>subdivision if the shares or ownership interests are traded on a public stock exchange at <br/>
<a id="pl.13.17"></a><var>13.17</var>any time during the three-year period ending on the decedent's date of death.<br/>
<a id="pl.13.18"></a><var>13.18</var>(3) The gross annual sales of the trade or business were $10,000,000 or less for the <br/>
<a id="pl.13.19"></a><var>13.19</var>last taxable year that ended before the date of the death of the decedent.<br/>
<a id="pl.13.20"></a><var>13.20</var>(4) The property does not consist of cash or cash equivalents. For property consisting <br/>
<a id="pl.13.21"></a><var>13.21</var>of shares of stock or other ownership interests in an entity, the amount of cash or cash <br/>
<a id="pl.13.22"></a><var>13.22</var>equivalents held by the corporation or other entity must be deducted from the value of <br/>
<a id="pl.13.23"></a><var>13.23</var>the property qualifying under this subdivision in proportion to the decedent's share of <br/>
<a id="pl.13.24"></a><var>13.24</var>ownership of the entity on the date of death.<br/>
<a id="pl.13.25"></a><var>13.25</var>(5) The decedent continuously owned the property for the three-year period ending <br/>
<a id="pl.13.26"></a><var>13.26</var>on the date of death of the decedent.<br/>
<a id="pl.13.27"></a><var>13.27</var>(6) A family member continuously uses the property in the operation of the trade or <br/>
<a id="pl.13.28"></a><var>13.28</var>business for three years following the date of death of the decedent.<br/>
<a id="pl.13.29"></a><var>13.29</var>(7) The estate and the qualified heir elect to treat the property as qualified small <br/>
<a id="pl.13.30"></a><var>13.30</var>business property and agree, in the form prescribed by the commissioner, to pay the <br/>
<a id="pl.13.31"></a><var>13.31</var>recapture tax under subdivision 11, if applicable.<br/>
<a id="pl.13.32"></a><var>13.32</var><b>EFFECTIVE DATE.</b>This section is effective for decedents dying after December <br/>
<a id="pl.13.33"></a><var>13.33</var>31, 2010.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.14.1"></a><var>14.1</var>    Sec. 11. Minnesota Statutes 2010, section 291.03, is amended by adding a subdivision <br/>
<a id="pl.14.2"></a><var>14.2</var>to read:<br/>
<a id="pl.14.3"></a><var>14.3</var>    Subd. 10. <b>Qualified farm property.</b> Property satisfying all of the following <br/>
<a id="pl.14.4"></a><var>14.4</var>requirements is qualified farm property:<br/>
<a id="pl.14.5"></a><var>14.5</var>(1) The value of the property was included in the federal adjusted taxable estate.<br/>
<a id="pl.14.6"></a><var>14.6</var>(2) The property consists of a farm meeting the requirements of section 500.24, <br/>
<a id="pl.14.7"></a><var>14.7</var>and was classified for property tax purposes as the homestead of the decedent or the <br/>
<a id="pl.14.8"></a><var>14.8</var>decedent's spouse or both under section 273.124, and as class 2a property under section <br/>
<a id="pl.14.9"></a><var>14.9</var>273.13, subdivision 23.<br/>
<a id="pl.14.10"></a><var>14.10</var>(3) The decedent continuously owned the property for the three-year period ending <br/>
<a id="pl.14.11"></a><var>14.11</var>on the date of death of the decedent.<br/>
<a id="pl.14.12"></a><var>14.12</var>(4) A family member continuously uses the property in the operation of the trade or <br/>
<a id="pl.14.13"></a><var>14.13</var>business for three years following the date of death of the decedent.<br/>
<a id="pl.14.14"></a><var>14.14</var>(5) The estate and the qualified heir elect to treat the property as qualified farm <br/>
<a id="pl.14.15"></a><var>14.15</var>property and agree, in a form prescribed by the commissioner, to pay the recapture tax <br/>
<a id="pl.14.16"></a><var>14.16</var>under subdivision 11, if applicable.<br/>
<a id="pl.14.17"></a><var>14.17</var><b>EFFECTIVE DATE.</b>This section is effective for decedents dying after December <br/>
<a id="pl.14.18"></a><var>14.18</var>31, 2010.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.14.19"></a><var>14.19</var>    Sec. 12. Minnesota Statutes 2010, section 291.03, is amended by adding a subdivision <br/>
<a id="pl.14.20"></a><var>14.20</var>to read:<br/>
<a id="pl.14.21"></a><var>14.21</var>    Subd. 11. <b>Recapture tax.</b> (a) If, within three years after the decedent's death and <br/>
<a id="pl.14.22"></a><var>14.22</var>before the death of the qualified heir, the qualified heir disposes of any interest in the <br/>
<a id="pl.14.23"></a><var>14.23</var>qualified property, other than by a disposition to a family member, or a family member <br/>
<a id="pl.14.24"></a><var>14.24</var>ceases to use the qualified property which was acquired or passed from the decedent, an <br/>
<a id="pl.14.25"></a><var>14.25</var>additional estate tax is imposed on the property.<br/>
<a id="pl.14.26"></a><var>14.26</var>(b) The amount of the additional tax equals the amount of the exclusion claimed by <br/>
<a id="pl.14.27"></a><var>14.27</var>the estate under subdivision 8, paragraph (d), multiplied by 16 percent.<br/>
<a id="pl.14.28"></a><var>14.28</var>(c) The additional tax under this subdivision is due on the day which is six months <br/>
<a id="pl.14.29"></a><var>14.29</var>after the date of the disposition or cessation in paragraph (a).<br/>
<a id="pl.14.30"></a><var>14.30</var><b>EFFECTIVE DATE.</b>This section is effective for decedents dying after December <br/>
<a id="pl.14.31"></a><var>14.31</var>31, 2010.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.14.32"></a><var>14.32</var>    Sec. 13. <b>INCOME TAX RECIPROCITY BENCHMARK STUDY.</b><br/>
<a id="pl.15.1"></a><var>15.1</var>(a) The Department of Revenue, in conjunction with the Wisconsin Department of <br/>
<a id="pl.15.2"></a><var>15.2</var>Revenue, must conduct a study to determine at least the following:<br/>
<a id="pl.15.3"></a><var>15.3</var>(1) the number of residents of each state who earn income from personal services in <br/>
<a id="pl.15.4"></a><var>15.4</var>the other state;<br/>
<a id="pl.15.5"></a><var>15.5</var>(2) the total amount of income earned by residents of each state who earn income <br/>
<a id="pl.15.6"></a><var>15.6</var>from personal services in the other state; and<br/>
<a id="pl.15.7"></a><var>15.7</var>(3) the change in tax revenue in each state if an income tax reciprocity arrangement <br/>
<a id="pl.15.8"></a><var>15.8</var>were resumed between the two states under which the taxpayers were required to pay <br/>
<a id="pl.15.9"></a><var>15.9</var>income taxes on the income only in their state of residence.<br/>
<a id="pl.15.10"></a><var>15.10</var>(b) The study must be conducted as soon as practicable, using information obtained <br/>
<a id="pl.15.11"></a><var>15.11</var>from each state's income tax returns for tax year 2011, and from any other source of <br/>
<a id="pl.15.12"></a><var>15.12</var>information the departments determine is necessary to complete the study.<br/>
<a id="pl.15.13"></a><var>15.13</var>(c) No later than March 1, 2013, the Department of Revenue must submit a report <br/>
<a id="pl.15.14"></a><var>15.14</var>containing the results of the study to the governor and to the chairs and ranking minority <br/>
<a id="pl.15.15"></a><var>15.15</var>members of the legislative committees having jurisdiction over taxes.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.15.16"></a><var>15.16</var>    Sec. 14. <b>APPROPRIATIONS.</b><br/>
<a id="pl.15.17"></a><var>15.17</var>    Subdivision 1. <b>Income tax reciprocity benchmark study.</b> The sum of $409,000 in <br/>
<a id="pl.15.18"></a><var>15.18</var>fiscal year 2012 and $429,000 in fiscal year 2013 is appropriated from the general fund <br/>
<a id="pl.15.19"></a><var>15.19</var>to the commissioner of revenue for the income reciprocity benchmark study required <br/>
<a id="pl.15.20"></a><var>15.20</var>under section 13. The appropriation under this section is onetime and is not added to <br/>
<a id="pl.15.21"></a><var>15.21</var>the agency's base budget.<br/>
<a id="pl.15.22"></a><var>15.22</var>    Subd. 2. <b>Tax checkoff for state budget reserve.</b> $104,000 in fiscal year 2012 and <br/>
<a id="pl.15.23"></a><var>15.23</var>$37,000 in fiscal year 2013 are appropriated from the general fund to the commissioner of <br/>
<a id="pl.15.24"></a><var>15.24</var>revenue to implement the tax checkoff in Minnesota Statutes, section 290.433.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.15.27"></a><var>15.27</var>    Section 1. Minnesota Statutes 2010, section 297A.61, subdivision 3, is amended to <br/>
<a id="pl.15.28"></a><var>15.28</var>read:<br/>
<a id="pl.15.29"></a><var>15.29</var>    Subd. 3. <b>Sale and purchase.</b> (a) "Sale" and "purchase" include, but are not limited <br/>
<a id="pl.15.30"></a><var>15.30</var>to, each of the transactions listed in this subdivision.<br/>
<a id="pl.15.31"></a><var>15.31</var>    (b) Sale and purchase include:<br/>
<a id="pl.15.32"></a><var>15.32</var>    (1) any transfer of title or possession, or both, of tangible personal property, whether <br/>
<a id="pl.15.33"></a><var>15.33</var>absolutely or conditionally, for a consideration in money or by exchange or barter; and<br/>
<a id="pl.16.1"></a><var>16.1</var>    (2) the leasing of or the granting of a license to use or consume, for a consideration <br/>
<a id="pl.16.2"></a><var>16.2</var>in money or by exchange or barter, tangible personal property, other than a manufactured <br/>
<a id="pl.16.3"></a><var>16.3</var>home used for residential purposes for a continuous period of 30 days or more.<br/>
<a id="pl.16.4"></a><var>16.4</var>    (c) Sale and purchase include the production, fabrication, printing, or processing of <br/>
<a id="pl.16.5"></a><var>16.5</var>tangible personal property for a consideration for consumers who furnish either directly or <br/>
<a id="pl.16.6"></a><var>16.6</var>indirectly the materials used in the production, fabrication, printing, or processing.<br/>
<a id="pl.16.7"></a><var>16.7</var>    (d) Sale and purchase include the preparing for a consideration of food. <br/>
<a id="pl.16.8"></a><var>16.8</var>Notwithstanding section 
         <statute_ref>297A.67, subdivision 2</statute_ref>, taxable food includes, but is not limited <br/>
<a id="pl.16.9"></a><var>16.9</var>to, the following:<br/>
<a id="pl.16.10"></a><var>16.10</var>    (1) prepared food sold by the retailer;<br/>
<a id="pl.16.11"></a><var>16.11</var>    (2) soft drinks;<br/>
<a id="pl.16.12"></a><var>16.12</var>    (3) candy;<br/>
<a id="pl.16.13"></a><var>16.13</var>    (4) dietary supplements; and<br/>
<a id="pl.16.14"></a><var>16.14</var>    (5) all food sold through vending machines.<br/>
<a id="pl.16.15"></a><var>16.15</var>    (e) A sale and a purchase includes the furnishing for a consideration of electricity, <br/>
<a id="pl.16.16"></a><var>16.16</var>gas, water, or steam for use or consumption within this state.<br/>
<a id="pl.16.17"></a><var>16.17</var>    (f) A sale and a purchase includes the transfer for a consideration of prewritten <br/>
<a id="pl.16.18"></a><var>16.18</var>computer software whether delivered electronically, by load and leave, or otherwise.<br/>
<a id="pl.16.19"></a><var>16.19</var>    (g) A sale and a purchase includes the furnishing for a consideration of the following <br/>
<a id="pl.16.20"></a><var>16.20</var>services:<br/>
<a id="pl.16.21"></a><var>16.21</var>    (1) the privilege of admission to places of amusement, recreational areas, or athletic <br/>
<a id="pl.16.22"></a><var>16.22</var>events, and the making available of amusement devices, tanning facilities, reducing <br/>
<a id="pl.16.23"></a><var>16.23</var>salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;<br/>
<a id="pl.16.24"></a><var>16.24</var>    (2) lodging and related services by a hotel, rooming house, resort, campground, <br/>
<a id="pl.16.25"></a><var>16.25</var>motel, or trailer camp, including furnishing the guest of the facility with access to <br/>
<a id="pl.16.26"></a><var>16.26</var>telecommunication services, and the granting of any similar license to use real property <br/>
<a id="pl.16.27"></a><var>16.27</var>in a specific facility, other than the renting or leasing of it for a continuous period of <br/>
<a id="pl.16.28"></a><var>16.28</var>30 days or more under an enforceable written agreement that may not be terminated <br/>
<a id="pl.16.29"></a><var>16.29</var>without prior notice;<br/>
<a id="pl.16.30"></a><var>16.30</var>    (3) nonresidential parking services, whether on a contractual, hourly, or other <br/>
<a id="pl.16.31"></a><var>16.31</var>periodic basis, except for parking at a meter;<br/>
<a id="pl.16.32"></a><var>16.32</var>    (4) the granting of membership in a club, association, or other organization if:<br/>
<a id="pl.16.33"></a><var>16.33</var>    (i) the club, association, or other organization makes available for the use of its <br/>
<a id="pl.16.34"></a><var>16.34</var>members sports and athletic facilities, without regard to whether a separate charge is <br/>
<a id="pl.16.35"></a><var>16.35</var>assessed for use of the facilities; and<br/>
<a id="pl.17.1"></a><var>17.1</var>    (ii) use of the sports and athletic facility is not made available to the general public <br/>
<a id="pl.17.2"></a><var>17.2</var>on the same basis as it is made available to members.<br/>
<a id="pl.17.3"></a><var>17.3</var>Granting of membership means both onetime initiation fees and periodic membership <br/>
<a id="pl.17.4"></a><var>17.4</var>dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and <br/>
<a id="pl.17.5"></a><var>17.5</var>squash courts; basketball and volleyball facilities; running tracks; exercise equipment; <br/>
<a id="pl.17.6"></a><var>17.6</var>swimming pools; and other similar athletic or sports facilities;<br/>
<a id="pl.17.7"></a><var>17.7</var>    (5) delivery of aggregate materials by a third party, excluding delivery of aggregate <br/>
<a id="pl.17.8"></a><var>17.8</var>material used in road construction, and delivery of concrete block by a third party if <br/>
<a id="pl.17.9"></a><var>17.9</var>the delivery would be subject to the sales tax if provided by the seller of the concrete <br/>
<a id="pl.17.10"></a><var>17.10</var>block; and<br/>
<a id="pl.17.11"></a><var>17.11</var>    (6) services as provided in this clause:<br/>
<a id="pl.17.12"></a><var>17.12</var>    (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, <br/>
<a id="pl.17.13"></a><var>17.13</var>and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, <br/>
<a id="pl.17.14"></a><var>17.14</var>drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not <br/>
<a id="pl.17.15"></a><var>17.15</var>include services provided by coin operated facilities operated by the customer;<br/>
<a id="pl.17.16"></a><var>17.16</var>    (ii) motor vehicle washing, waxing, and cleaning services, including services <br/>
<a id="pl.17.17"></a><var>17.17</var>provided by coin operated facilities operated by the customer, and rustproofing, <br/>
<a id="pl.17.18"></a><var>17.18</var>undercoating, and towing of motor vehicles;<br/>
<a id="pl.17.19"></a><var>17.19</var>    (iii) building and residential cleaning, maintenance, and disinfecting services and <br/>
<a id="pl.17.20"></a><var>17.20</var>pest control and exterminating services;<br/>
<a id="pl.17.21"></a><var>17.21</var>    (iv) detective, security, burglar, fire alarm, and armored car services; but not <br/>
<a id="pl.17.22"></a><var>17.22</var>including services performed within the jurisdiction they serve by off-duty licensed peace <br/>
<a id="pl.17.23"></a><var>17.23</var>officers as defined in section 
         <statute_ref>626.84, subdivision 1</statute_ref>, or services provided by a nonprofit <br/>
<a id="pl.17.24"></a><var>17.24</var>organization for monitoring and electronic surveillance of persons placed on in-home <br/>
<a id="pl.17.25"></a><var>17.25</var>detention pursuant to court order or under the direction of the Minnesota Department <br/>
<a id="pl.17.26"></a><var>17.26</var>of Corrections;<br/>
<a id="pl.17.27"></a><var>17.27</var>    (v) pet grooming services;<br/>
<a id="pl.17.28"></a><var>17.28</var>    (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting <br/>
<a id="pl.17.29"></a><var>17.29</var>and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor <br/>
<a id="pl.17.30"></a><var>17.30</var>plant care; tree, bush, shrub, and stump removal, except when performed as part of a land <br/>
<a id="pl.17.31"></a><var>17.31</var>clearing contract as defined in section 
         <statute_ref>297A.68, subdivision 40</statute_ref>; and tree trimming for <br/>
<a id="pl.17.32"></a><var>17.32</var>public utility lines. Services performed under a construction contract for the installation of <br/>
<a id="pl.17.33"></a><var>17.33</var>shrubbery, plants, sod, trees, bushes, and similar items are not taxable;<br/>
<a id="pl.17.34"></a><var>17.34</var>    (vii) massages, except when provided by a licensed health care facility or <br/>
<a id="pl.17.35"></a><var>17.35</var>professional or upon written referral from a licensed health care facility or professional for <br/>
<a id="pl.17.36"></a><var>17.36</var>treatment of illness, injury, or disease; and<br/>
<a id="pl.18.1"></a><var>18.1</var>    (viii) the furnishing of lodging, board, and care services for animals in kennels and <br/>
<a id="pl.18.2"></a><var>18.2</var>other similar arrangements, but excluding veterinary and horse boarding services.<br/>
<a id="pl.18.3"></a><var>18.3</var>    In applying the provisions of this chapter, the terms "tangible personal property" and <br/>
<a id="pl.18.4"></a><var>18.4</var>"retail sale" include taxable services listed in clause (6), items (i) to (vi) and (viii), and <br/>
<a id="pl.18.5"></a><var>18.5</var>the provision of these taxable services, unless specifically provided otherwise. Services <br/>
<a id="pl.18.6"></a><var>18.6</var>performed by an employee for an employer are not taxable. Services performed by a <br/>
<a id="pl.18.7"></a><var>18.7</var>partnership or association for another partnership or association are not taxable if one <br/>
<a id="pl.18.8"></a><var>18.8</var>of the entities owns or controls more than 80 percent of the voting power of the equity <br/>
<a id="pl.18.9"></a><var>18.9</var>interest in the other entity. Services performed between members of an affiliated group <br/>
<a id="pl.18.10"></a><var>18.10</var>of corporations are not taxable. <br/>
<a id="pl.18.11"></a><var>18.11</var>For purposes of the preceding sentence, "affiliated group of corporations" means <br/>
<a id="pl.18.12"></a><var>18.12</var>those entities that would be classified as members of an affiliated group as defined under <br/>
<a id="pl.18.13"></a><var>18.13</var>United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b).<br/>
<a id="pl.18.14"></a><var>18.14</var>    For purposes of clause (5), "road construction" means construction of (1) public <br/>
<a id="pl.18.15"></a><var>18.15</var>roads, (2) cartways, and (3) private roads in townships located outside of the seven-county <br/>
<a id="pl.18.16"></a><var>18.16</var>metropolitan area up to the point of the emergency response location sign.<br/>
<a id="pl.18.17"></a><var>18.17</var>    (h) A sale and a purchase includes the furnishing for a consideration of tangible <br/>
<a id="pl.18.18"></a><var>18.18</var>personal property or taxable services by the United States or any of its agencies or <br/>
<a id="pl.18.19"></a><var>18.19</var>instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political <br/>
<a id="pl.18.20"></a><var>18.20</var>subdivisions.<br/>
<a id="pl.18.21"></a><var>18.21</var>    (i) A sale and a purchase includes the furnishing for a consideration of <br/>
<a id="pl.18.22"></a><var>18.22</var>telecommunications services, ancillary services associated with telecommunication <br/>
<a id="pl.18.23"></a><var>18.23</var>services, cable television services, and direct satellite services, and ring tones. <br/>
<a id="pl.18.24"></a><var>18.24</var>Telecommunication services include, but are not limited to, the following services, <br/>
<a id="pl.18.25"></a><var>18.25</var>as defined in section 
         <statute_ref>297A.669</statute_ref>: air-to-ground radiotelephone service, mobile <br/>
<a id="pl.18.26"></a><var>18.26</var>telecommunication service, postpaid calling service, prepaid calling service, prepaid <br/>
<a id="pl.18.27"></a><var>18.27</var>wireless calling service, and private communication services. The services in this <br/>
<a id="pl.18.28"></a><var>18.28</var>paragraph are taxed to the extent allowed under federal law.<br/>
<a id="pl.18.29"></a><var>18.29</var>    (j) A sale and a purchase includes the furnishing for a consideration of installation if <br/>
<a id="pl.18.30"></a><var>18.30</var>the installation charges would be subject to the sales tax if the installation were provided <br/>
<a id="pl.18.31"></a><var>18.31</var>by the seller of the item being installed.<br/>
<a id="pl.18.32"></a><var>18.32</var>    (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer <br/>
<a id="pl.18.33"></a><var>18.33</var>to a customer when (1) the vehicle is rented by the customer for a consideration, or (2) <br/>
<a id="pl.18.34"></a><var>18.34</var>the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section <br/>
<statute_ref><a id="pl.18.35"></a><var>18.35</var>59B.02, subdivision
         </statute_ref> 11.<br/>
<a id="pl.19.1"></a><var>19.1</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.19.2"></a><var>19.2</var>June 30, 2011.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.19.3"></a><var>19.3</var>    Sec. 2. Minnesota Statutes 2010, section 297A.67, subdivision 7, is amended to read:<br/>
<a id="pl.19.4"></a><var>19.4</var>    Subd. 7. <b>Drugs; medical devices.</b> (a) Sales of the following drugs and medical <br/>
<a id="pl.19.5"></a><var>19.5</var>devices for human use are exempt:<br/>
<a id="pl.19.6"></a><var>19.6</var>    (1) drugs, including over-the-counter drugs;<br/>
<a id="pl.19.7"></a><var>19.7</var>    (2) single-use finger-pricking devices for the extraction of blood and other single-use <br/>
<a id="pl.19.8"></a><var>19.8</var>devices and single-use diagnostic agents used in diagnosing, monitoring, or treating <br/>
<a id="pl.19.9"></a><var>19.9</var>diabetes;<br/>
<a id="pl.19.10"></a><var>19.10</var>    (3) insulin and medical oxygen for human use, regardless of whether prescribed <br/>
<a id="pl.19.11"></a><var>19.11</var>or sold over the counter;<br/>
<a id="pl.19.12"></a><var>19.12</var>    (4) prosthetic devices;<br/>
<a id="pl.19.13"></a><var>19.13</var>    (5) durable medical equipment for home use only;<br/>
<a id="pl.19.14"></a><var>19.14</var>    (6) mobility enhancing equipment;<br/>
<a id="pl.19.15"></a><var>19.15</var>    (7) prescription corrective eyeglasses; and<br/>
<a id="pl.19.16"></a><var>19.16</var>    (8) kidney dialysis equipment, including repair and replacement parts.<br/>
<a id="pl.19.17"></a><var>19.17</var>    (b) Items purchased in transactions covered by:<br/>
<a id="pl.19.18"></a><var>19.18</var>(1) Medicare as defined under title XVIII of the Social Security Act, United States <br/>
<a id="pl.19.19"></a><var>19.19</var>Code, title 42, sections 1395, et seq.; or<br/>
<a id="pl.19.20"></a><var>19.20</var>(2) Medicaid as defined under title XIX of the Social Security Act, United States <br/>
<a id="pl.19.21"></a><var>19.21</var>Code, title 42, sections 1396, et seq.<br/>
<a id="pl.19.22"></a><var>19.22</var>(c) For purposes of this subdivision:<br/>
<a id="pl.19.23"></a><var>19.23</var>    (1) "Drug" means a compound, substance, or preparation, and any component of <br/>
<a id="pl.19.24"></a><var>19.24</var>a compound, substance, or preparation, other than food and food ingredients, dietary <br/>
<a id="pl.19.25"></a><var>19.25</var>supplements, or alcoholic beverages that is:<br/>
<a id="pl.19.26"></a><var>19.26</var>    (i) recognized in the official United States Pharmacopoeia, official Homeopathic <br/>
<a id="pl.19.27"></a><var>19.27</var>Pharmacopoeia of the United States, or official National Formulary, and supplement <br/>
<a id="pl.19.28"></a><var>19.28</var>to any of them;<br/>
<a id="pl.19.29"></a><var>19.29</var>    (ii) intended for use in the diagnosis, cure, mitigation, treatment, or prevention <br/>
<a id="pl.19.30"></a><var>19.30</var>of disease; or<br/>
<a id="pl.19.31"></a><var>19.31</var>    (iii) intended to affect the structure or any function of the body.<br/>
<a id="pl.19.32"></a><var>19.32</var>    (2) "Durable medical equipment" means equipment, including repair and <br/>
<a id="pl.19.33"></a><var>19.33</var>replacement parts, including single patient use items, but not including mobility enhancing <br/>
<a id="pl.19.34"></a><var>19.34</var>equipment, that:<br/>
<a id="pl.19.35"></a><var>19.35</var>    (i) can withstand repeated use;<br/>
<a id="pl.20.1"></a><var>20.1</var>    (ii) is primarily and customarily used to serve a medical purpose;<br/>
<a id="pl.20.2"></a><var>20.2</var>    (iii) generally is not useful to a person in the absence of illness or injury; and<br/>
<a id="pl.20.3"></a><var>20.3</var>    (iv) is not worn in or on the body.<br/>
<a id="pl.20.4"></a><var>20.4</var>    For purposes of this clause, "repair and replacement parts" includes all components <br/>
<a id="pl.20.5"></a><var>20.5</var>or attachments used in conjunction with the durable medical equipment, but does not <br/>
<a id="pl.20.6"></a><var>20.6</var>include including repair and replacement parts which are for single patient use only.<br/>
<a id="pl.20.7"></a><var>20.7</var>    (3) "Mobility enhancing equipment" means equipment, including repair and <br/>
<a id="pl.20.8"></a><var>20.8</var>replacement parts, but not including durable medical equipment, that:<br/>
<a id="pl.20.9"></a><var>20.9</var>    (i) is primarily and customarily used to provide or increase the ability to move from <br/>
<a id="pl.20.10"></a><var>20.10</var>one place to another and that is appropriate for use either in a home or a motor vehicle;<br/>
<a id="pl.20.11"></a><var>20.11</var>    (ii) is not generally used by persons with normal mobility; and<br/>
<a id="pl.20.12"></a><var>20.12</var>    (iii) does not include any motor vehicle or equipment on a motor vehicle normally <br/>
<a id="pl.20.13"></a><var>20.13</var>provided by a motor vehicle manufacturer.<br/>
<a id="pl.20.14"></a><var>20.14</var>    (4) "Over-the-counter drug" means a drug that contains a label that identifies the <br/>
<a id="pl.20.15"></a><var>20.15</var>product as a drug as required by Code of Federal Regulations, title 21, section 
         <statute_ref>201.66</statute_ref>. The <br/>
<a id="pl.20.16"></a><var>20.16</var>label must include a "drug facts" panel or a statement of the active ingredients with a list of <br/>
<a id="pl.20.17"></a><var>20.17</var>those ingredients contained in the compound, substance, or preparation. Over-the-counter <br/>
<a id="pl.20.18"></a><var>20.18</var>drugs do not include grooming and hygiene products, regardless of whether they otherwise <br/>
<a id="pl.20.19"></a><var>20.19</var>meet the definition. "Grooming and hygiene products" are soaps, cleaning solutions, <br/>
<a id="pl.20.20"></a><var>20.20</var>shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and sunscreens.<br/>
<a id="pl.20.21"></a><var>20.21</var>    (5) "Prescribed" and "prescription" means a direction in the form of an order, <br/>
<a id="pl.20.22"></a><var>20.22</var>formula, or recipe issued in any form of oral, written, electronic, or other means of <br/>
<a id="pl.20.23"></a><var>20.23</var>transmission by a duly licensed health care professional.<br/>
<a id="pl.20.24"></a><var>20.24</var>    (6) "Prosthetic device" means a replacement, corrective, or supportive device, <br/>
<a id="pl.20.25"></a><var>20.25</var>including repair and replacement parts, worn on or in the body to:<br/>
<a id="pl.20.26"></a><var>20.26</var>    (i) artificially replace a missing portion of the body;<br/>
<a id="pl.20.27"></a><var>20.27</var>    (ii) prevent or correct physical deformity or malfunction; or<br/>
<a id="pl.20.28"></a><var>20.28</var>    (iii) support a weak or deformed portion of the body.<br/>
<a id="pl.20.29"></a><var>20.29</var>Prosthetic device does not include corrective eyeglasses.<br/>
<a id="pl.20.30"></a><var>20.30</var>    (7) "Kidney dialysis equipment" means equipment that:<br/>
<a id="pl.20.31"></a><var>20.31</var>    (i) is used to remove waste products that build up in the blood when the kidneys are <br/>
<a id="pl.20.32"></a><var>20.32</var>not able to do so on their own; and<br/>
<a id="pl.20.33"></a><var>20.33</var>    (ii) can withstand repeated use, including multiple use by a single patient, <br/>
<a id="pl.20.34"></a><var>20.34</var>notwithstanding the provisions of clause (2).<br/>
<a id="pl.20.35"></a><var>20.35</var>(8) A transaction is covered by Medicare or Medicaid if any portion of the cost of <br/>
<a id="pl.20.36"></a><var>20.36</var>the item purchased in the transaction is paid for or reimbursed by the federal government <br/>
<a id="pl.21.1"></a><var>21.1</var>or the state of Minnesota pursuant to the Medicare or Medicaid program, by a private <br/>
<a id="pl.21.2"></a><var>21.2</var>insurance company administering the Medicare or Medicaid program on behalf of the <br/>
<a id="pl.21.3"></a><var>21.3</var>federal government or the state of Minnesota, or by a managed care organization for the <br/>
<a id="pl.21.4"></a><var>21.4</var>benefit of a patient enrolled in a prepaid program that furnishes medical services in lieu <br/>
<a id="pl.21.5"></a><var>21.5</var>of conventional Medicare or Medicaid coverage pursuant to agreement with the federal <br/>
<a id="pl.21.6"></a><var>21.6</var>government or the state of Minnesota.<br/>
<a id="pl.21.7"></a><var>21.7</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.21.8"></a><var>21.8</var>June 30, 2011.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.21.9"></a><var>21.9</var>    Sec. 3. Minnesota Statutes 2010, section 297A.67, is amended by adding a subdivision <br/>
<a id="pl.21.10"></a><var>21.10</var>to read:<br/>
<a id="pl.21.11"></a><var>21.11</var>    Subd. 7a. <b>Accessories and supplies.</b> Accessories and supplies required for the <br/>
<a id="pl.21.12"></a><var>21.12</var>effective use of durable medical equipment for home use only or purchased in a transaction <br/>
<a id="pl.21.13"></a><var>21.13</var>covered by Medicare or Medicaid, that are not already exempt under subdivision 7 are <br/>
<a id="pl.21.14"></a><var>21.14</var>exempt. Accessories and supplies for the effective use of a prosthetic device that are <br/>
<a id="pl.21.15"></a><var>21.15</var>not already exempt under subdivision 7 are exempt. For purposes of this subdivision <br/>
<a id="pl.21.16"></a><var>21.16</var>"durable medical equipment," "prosthetic device," "Medicare," and "Medicaid" have the <br/>
<a id="pl.21.17"></a><var>21.17</var>definitions given in subdivision 7.<br/>
<a id="pl.21.18"></a><var>21.18</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.21.19"></a><var>21.19</var>June 30, 2011.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.21.20"></a><var>21.20</var>    Sec. 4. Minnesota Statutes 2010, section 297A.67, is amended by adding a subdivision <br/>
<a id="pl.21.21"></a><var>21.21</var>to read:<br/>
<a id="pl.21.22"></a><var>21.22</var>    Subd. 33. <b>Resale ticket purchases.</b> For resale purchases made subsequent to the <br/>
<a id="pl.21.23"></a><var>21.23</var>purchase of a ticket from the initial seller, as defined under section 609.807, paragraph <br/>
<a id="pl.21.24"></a><var>21.24</var>(a), the original face value of a ticket, as defined under section 609.807, paragraph (a), <br/>
<a id="pl.21.25"></a><var>21.25</var>is exempt.<br/>
<a id="pl.21.26"></a><var>21.26</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.21.27"></a><var>21.27</var>June 30, 2011.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.21.28"></a><var>21.28</var>    Sec. 5. Minnesota Statutes 2010, section 297A.70, subdivision 1, is amended to read:<br/>
<a id="pl.21.29"></a><var>21.29</var>    Subdivision 1. <b>Scope.</b> (a) To the extent provided in this section, the gross receipts <br/>
<a id="pl.21.30"></a><var>21.30</var>from sales of items to or by, and storage, distribution, use, or consumption of items by the <br/>
<a id="pl.21.31"></a><var>21.31</var>organizations or units of local government listed in this section are specifically exempted <br/>
<a id="pl.21.32"></a><var>21.32</var>from the taxes imposed by this chapter.<br/>
<a id="pl.22.1"></a><var>22.1</var>(b) Notwithstanding any law to the contrary enacted before 1992, only sales to <br/>
<a id="pl.22.2"></a><var>22.2</var>governments and political subdivisions listed in this section are exempt from the taxes <br/>
<a id="pl.22.3"></a><var>22.3</var>imposed by this chapter.<br/>
<a id="pl.22.4"></a><var>22.4</var>(c) "Sales" includes purchases under an installment contract or lease purchase <br/>
<a id="pl.22.5"></a><var>22.5</var>agreement under section 
         <statute_ref>465.71</statute_ref>.<br/>
<a id="pl.22.6"></a><var>22.6</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.22.7"></a><var>22.7</var>June 30, 2011.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.22.8"></a><var>22.8</var>    Sec. 6. Minnesota Statutes 2010, section 297A.70, subdivision 2, is amended to read:<br/>
<a id="pl.22.9"></a><var>22.9</var>    Subd. 2. <b>Sales to government.</b> (a) All sales, except those listed in paragraph (b), <br/>
<a id="pl.22.10"></a><var>22.10</var>to the following governments and political subdivisions, or to the listed agencies or <br/>
<a id="pl.22.11"></a><var>22.11</var>instrumentalities of governments and political subdivisions, are exempt:<br/>
<a id="pl.22.12"></a><var>22.12</var>(1) the United States and its agencies and instrumentalities;<br/>
<a id="pl.22.13"></a><var>22.13</var>(2) school districts, the University of Minnesota, state universities, community <br/>
<a id="pl.22.14"></a><var>22.14</var>colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts <br/>
<a id="pl.22.15"></a><var>22.15</var>Education, and an instrumentality of a political subdivision that is accredited as an <br/>
<a id="pl.22.16"></a><var>22.16</var>optional/special function school by the North Central Association of Colleges and Schools;<br/>
<a id="pl.22.17"></a><var>22.17</var>(3) hospitals and nursing homes owned and operated by political subdivisions of <br/>
<a id="pl.22.18"></a><var>22.18</var>the state of tangible personal property and taxable services used at or by hospitals and <br/>
<a id="pl.22.19"></a><var>22.19</var>nursing homes;<br/>
<a id="pl.22.20"></a><var>22.20</var>(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip <br/>
<a id="pl.22.21"></a><var>22.21</var>operations provided for in section 
         <statute_ref>473.4051</statute_ref>;<br/>
<a id="pl.22.22"></a><var>22.22</var>(5) other states or political subdivisions of other states, if the sale would be exempt <br/>
<a id="pl.22.23"></a><var>22.23</var>from taxation if it occurred in that state; and<br/>
<a id="pl.22.24"></a><var>22.24</var>(6) sales to public libraries, public library systems, multicounty, multitype library <br/>
<a id="pl.22.25"></a><var>22.25</var>systems as defined in section 
         <statute_ref>134.001</statute_ref>, county law libraries under chapter 134A, state <br/>
<a id="pl.22.26"></a><var>22.26</var>agency libraries, the state library under section 
         <statute_ref>480.09</statute_ref>, and the Legislative Reference <br/>
<a id="pl.22.27"></a><var>22.27</var>Library; and<br/>
<a id="pl.22.28"></a><var>22.28</var>(7) towns.<br/>
<a id="pl.22.29"></a><var>22.29</var>(b) This exemption does not apply to the sales of the following products and services:<br/>
<a id="pl.22.30"></a><var>22.30</var>(1) building, construction, or reconstruction materials purchased by a contractor <br/>
<a id="pl.22.31"></a><var>22.31</var>or a subcontractor as a part of a lump-sum contract or similar type of contract with a <br/>
<a id="pl.22.32"></a><var>22.32</var>guaranteed maximum price covering both labor and materials for use in the construction, <br/>
<a id="pl.22.33"></a><var>22.33</var>alteration, or repair of a building or facility;<br/>
<a id="pl.23.1"></a><var>23.1</var>(2) construction materials purchased by tax exempt entities or their contractors to <br/>
<a id="pl.23.2"></a><var>23.2</var>be used in constructing buildings or facilities which will not be used principally by the <br/>
<a id="pl.23.3"></a><var>23.3</var>tax exempt entities;<br/>
<a id="pl.23.4"></a><var>23.4</var>(3) the leasing of a motor vehicle as defined in section 
         <statute_ref>297B.01, subdivision 11</statute_ref>, <br/>
<a id="pl.23.5"></a><var>23.5</var>except for leases entered into by the United States or its agencies or instrumentalities; or<br/>
<a id="pl.23.6"></a><var>23.6</var>(4) lodging as defined under section 
         <statute_ref>297A.61, subdivision 3</statute_ref>, paragraph (g), <br/>
<a id="pl.23.7"></a><var>23.7</var>clause (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in <br/>
<a id="pl.23.8"></a><var>23.8</var>section 
         <statute_ref>297A.67, subdivision 2</statute_ref>, except for lodging, prepared food, candy, soft drinks, <br/>
<a id="pl.23.9"></a><var>23.9</var>and alcoholic beverages purchased directly by the United States or its agencies or <br/>
<a id="pl.23.10"></a><var>23.10</var>instrumentalities; or  <br/>
<a id="pl.23.11"></a><var>23.11</var>(5) goods or services purchased by a town that are generally provided by a private <br/>
<a id="pl.23.12"></a><var>23.12</var>business and the purchases would be taxable if made by a private business engaged in the <br/>
<a id="pl.23.13"></a><var>23.13</var>same activity.<br/>
<a id="pl.23.14"></a><var>23.14</var>(c) As used in this subdivision, "school districts" means public school entities and <br/>
<a id="pl.23.15"></a><var>23.15</var>districts of every kind and nature organized under the laws of the state of Minnesota, and <br/>
<a id="pl.23.16"></a><var>23.16</var>any instrumentality of a school district, as defined in section 
         <statute_ref>471.59</statute_ref>.<br/>
<a id="pl.23.17"></a><var>23.17</var>(d) As used in this subdivision, "goods or services generally provided by a private <br/>
<a id="pl.23.18"></a><var>23.18</var>business" include, but are not limited to, goods or services provided by liquor stores, gas <br/>
<a id="pl.23.19"></a><var>23.19</var>and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes, <br/>
<a id="pl.23.20"></a><var>23.20</var>and laundromats. "Goods or services generally provided by a private business" do not <br/>
<a id="pl.23.21"></a><var>23.21</var>include housing services, sewer and water services, wastewater treatment, ambulance and <br/>
<a id="pl.23.22"></a><var>23.22</var>other public safety services, correctional services, chore or homemaking services provided <br/>
<a id="pl.23.23"></a><var>23.23</var>to elderly or disabled individuals, or road and street maintenance or lighting.<br/>
<a id="pl.23.24"></a><var>23.24</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.23.25"></a><var>23.25</var>June 30, 2011.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.23.26"></a><var>23.26</var>    Sec. 7. Minnesota Statutes 2010, section 297A.70, subdivision 3, is amended to read:<br/>
<a id="pl.23.27"></a><var>23.27</var>    Subd. 3. <b>Sales of certain goods and services to government.</b> (a) The following <br/>
<a id="pl.23.28"></a><var>23.28</var>sales to or use by the specified governments and political subdivisions of the state are <br/>
<a id="pl.23.29"></a><var>23.29</var>exempt:<br/>
<a id="pl.23.30"></a><var>23.30</var>    (1) repair and replacement parts for emergency rescue vehicles, fire trucks, and <br/>
<a id="pl.23.31"></a><var>23.31</var>fire apparatus to a political subdivision;<br/>
<a id="pl.23.32"></a><var>23.32</var>    (2) machinery and equipment, except for motor vehicles, used directly for mixed <br/>
<a id="pl.23.33"></a><var>23.33</var>municipal solid waste management services at a solid waste disposal facility as defined in <br/>
<a id="pl.23.34"></a><var>23.34</var>section 
         <statute_ref>115A.03, subdivision 10</statute_ref>;<br/>
<a id="pl.24.1"></a><var>24.1</var>    (3) chore and homemaking services to a political subdivision of the state to be <br/>
<a id="pl.24.2"></a><var>24.2</var>provided to elderly or disabled individuals;<br/>
<a id="pl.24.3"></a><var>24.3</var>    (4) telephone services to the Office of Enterprise Technology that are used to provide <br/>
<a id="pl.24.4"></a><var>24.4</var>telecommunications services through the enterprise technology revolving fund;<br/>
<a id="pl.24.5"></a><var>24.5</var>    (5) firefighter personal protective equipment as defined in paragraph (b), if purchased <br/>
<a id="pl.24.6"></a><var>24.6</var>or authorized by and for the use of an organized fire department, fire protection district, or <br/>
<a id="pl.24.7"></a><var>24.7</var>fire company regularly charged with the responsibility of providing fire protection to the <br/>
<a id="pl.24.8"></a><var>24.8</var>state or a political subdivision;<br/>
<a id="pl.24.9"></a><var>24.9</var>    (6) bullet-resistant body armor that provides the wearer with ballistic and trauma <br/>
<a id="pl.24.10"></a><var>24.10</var>protection, if purchased by a law enforcement agency of the state or a political subdivision <br/>
<a id="pl.24.11"></a><var>24.11</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.24.12"></a><var>24.12</var>    (7) motor vehicles purchased or leased by political subdivisions of the state if the <br/>
<a id="pl.24.13"></a><var>24.13</var>vehicles are exempt from registration under section 
         <statute_ref>168.012, subdivision 1</statute_ref>, paragraph (b), <br/>
<a id="pl.24.14"></a><var>24.14</var>exempt from taxation under section 
         <statute_ref>473.448</statute_ref>, or exempt from the motor vehicle sales tax <br/>
<a id="pl.24.15"></a><var>24.15</var>under section 
         <statute_ref>297B.03</statute_ref>, clause (12);<br/>
<a id="pl.24.16"></a><var>24.16</var>    (8) equipment designed to process, dewater, and recycle biosolids for wastewater <br/>
<a id="pl.24.17"></a><var>24.17</var>treatment facilities of political subdivisions, and materials incidental to installation of <br/>
<a id="pl.24.18"></a><var>24.18</var>that equipment;<br/>
<a id="pl.24.19"></a><var>24.19</var>    (9) sales to a town of gravel and of machinery, equipment, and accessories, except <br/>
<a id="pl.24.20"></a><var>24.20</var>motor vehicles, used exclusively for road and bridge maintenance, and leases by a town of <br/>
<a id="pl.24.21"></a><var>24.21</var>motor vehicles exempt from tax under section 
<statute_ref>297B.03</statute_ref>, clause (10);<br/>
<a id="pl.24.22"></a><var>24.22</var>    (10) the removal of trees, bushes, or shrubs for the construction and maintenance <br/>
<a id="pl.24.23"></a><var>24.23</var>of roads, trails, or firebreaks when purchased by an agency of the state or a political <br/>
<a id="pl.24.24"></a><var>24.24</var>subdivision of the state; and<br/>
<a id="pl.24.25"></a><var>24.25</var>    (11) (10) purchases by the Metropolitan Council or the Department of Transportation <br/>
<a id="pl.24.26"></a><var>24.26</var>of vehicles and repair parts to equip operations provided for in section 
         <statute_ref>174.90</statute_ref>, including, <br/>
<a id="pl.24.27"></a><var>24.27</var>but not limited to, the Northstar Corridor Rail project.<br/>
<a id="pl.24.28"></a><var>24.28</var>    (b) For purposes of this subdivision, "firefighters personal protective equipment" <br/>
<a id="pl.24.29"></a><var>24.29</var>means helmets, including face shields, chin straps, and neck liners; bunker coats and <br/>
<a id="pl.24.30"></a><var>24.30</var>pants, including pant suspenders; boots; gloves; head covers or hoods; wildfire jackets; <br/>
<a id="pl.24.31"></a><var>24.31</var>protective coveralls; goggles; self-contained breathing apparatus; canister filter masks; <br/>
<a id="pl.24.32"></a><var>24.32</var>personal alert safety systems; spanner belts; optical or thermal imaging search devices; <br/>
<a id="pl.24.33"></a><var>24.33</var>and all safety equipment required by the Occupational Safety and Health Administration.<br/>
<a id="pl.24.34"></a><var>24.34</var>    (c) For purchases of items listed in paragraph (a), clause (11), the tax must be <br/>
<a id="pl.24.35"></a><var>24.35</var>imposed and collected as if the rate under section 
         <statute_ref>297A.62, subdivision 1</statute_ref>, applied and <br/>
<a id="pl.24.36"></a><var>24.36</var>then refunded in the manner provided in section 
         <statute_ref>297A.75</statute_ref>.<br/>
<a id="pl.25.1"></a><var>25.1</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.25.2"></a><var>25.2</var>June 30, 2011.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.25.3"></a><var>25.3</var>    Sec. 8. Minnesota Statutes 2010, section 297A.70, subdivision 8, is amended to read:<br/>
<a id="pl.25.4"></a><var>25.4</var>    Subd. 8. <b>Regionwide</b><b> Public safety radio communication </b><b>system</b><b> systems</b><b>; </b><br/>
<a id="pl.25.5"></a><var>25.5</var><b>products and services.</b> Products and services including, but not limited to, end user <br/>
<a id="pl.25.6"></a><var>25.6</var>equipment used for construction, ownership, operation, maintenance, and enhancement <br/>
<a id="pl.25.7"></a><var>25.7</var>of the backbone system of the regionwide public safety radio communication system <br/>
<a id="pl.25.8"></a><var>25.8</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.25.9"></a><var>25.9</var>dispatch centers, are exempt. For purposes of this subdivision, backbone system is defined <br/>
<a id="pl.25.10"></a><var>25.10</var>in section 
<statute_ref>403.21, subdivision 9</statute_ref>. This subdivision is effective for purchases, sales, storage, <br/>
<a id="pl.25.11"></a><var>25.11</var>use, or consumption for use in the first and second phases of the system, as defined in <br/>
<a id="pl.25.12"></a><var>25.12</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.25.13"></a><var>25.13</var>is located in the southeast district of the State Patrol and the counties of Benton, Sherburne, <br/>
<a id="pl.25.14"></a><var>25.14</var>Stearns, and Wright, and that portion of the system that is located in Itasca County.<br/>
<a id="pl.25.15"></a><var>25.15</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.25.16"></a><var>25.16</var>December 31, 2009. After December 31, 2013, purchasers may apply for a refund of tax <br/>
<a id="pl.25.17"></a><var>25.17</var>paid for qualifying purchases under this subdivision made after December 31, 2009, and <br/>
<a id="pl.25.18"></a><var>25.18</var>before January 1, 2013, in the manner provided in section 297A.75.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.25.19"></a><var>25.19</var>    Sec. 9. Minnesota Statutes 2010, section 297A.75, subdivision 1, is amended to read:<br/>
<a id="pl.25.20"></a><var>25.20</var>    Subdivision 1. <b>Tax collected.</b> The tax on the gross receipts from the sale of the <br/>
<a id="pl.25.21"></a><var>25.21</var>following exempt items must be imposed and collected as if the sale were taxable and the <br/>
<a id="pl.25.22"></a><var>25.22</var>rate under section 
         <statute_ref>297A.62, subdivision 1</statute_ref>, applied. The exempt items include:<br/>
<a id="pl.25.23"></a><var>25.23</var>    (1) capital equipment exempt under section 
         <statute_ref>297A.68, subdivision 5</statute_ref>;<br/>
<a id="pl.25.24"></a><var>25.24</var>    (2) building materials for an agricultural processing facility exempt under section <br/>
<statute_ref><a id="pl.25.25"></a><var>25.25</var>297A.71, subdivision 13
         </statute_ref>;<br/>
<a id="pl.25.26"></a><var>25.26</var>    (3) building materials for mineral production facilities exempt under section <br/>
<statute_ref><a id="pl.25.27"></a><var>25.27</var>297A.71, subdivision 14
         </statute_ref>;<br/>
<a id="pl.25.28"></a><var>25.28</var>    (4) building materials for correctional facilities under section 
         <statute_ref>297A.71, subdivision <br/>
<a id="pl.25.29"></a><var>25.29</var>3
         </statute_ref>;<br/>
<a id="pl.25.30"></a><var>25.30</var>    (5) building materials used in a residence for disabled veterans exempt under section <br/>
<statute_ref><a id="pl.25.31"></a><var>25.31</var>297A.71, subdivision 11
         </statute_ref>;<br/>
<a id="pl.25.32"></a><var>25.32</var>    (6) elevators and building materials exempt under section 
         <statute_ref>297A.71, subdivision 12</statute_ref>;<br/>
<a id="pl.25.33"></a><var>25.33</var>    (7) building materials for the Long Lake Conservation Center exempt under section <br/>
<statute_ref><a id="pl.25.34"></a><var>25.34</var>297A.71, subdivision 17
         </statute_ref>;<br/>
<a id="pl.26.1"></a><var>26.1</var>    (8) materials and supplies for qualified low-income housing under section 
         <statute_ref>297A.71, <br/>
<a id="pl.26.2"></a><var>26.2</var>subdivision 23
         </statute_ref>;<br/>
<a id="pl.26.3"></a><var>26.3</var>    (9) materials, supplies, and equipment for municipal electric utility facilities under <br/>
<a id="pl.26.4"></a><var>26.4</var>section 
         <statute_ref>297A.71, subdivision 35</statute_ref>;<br/>
<a id="pl.26.5"></a><var>26.5</var>    (10) equipment and materials used for the generation, transmission, and distribution <br/>
<a id="pl.26.6"></a><var>26.6</var>of electrical energy and an aerial camera package exempt under section 
         <statute_ref>297A.68</statute_ref>, <br/>
<a id="pl.26.7"></a><var>26.7</var>subdivision 37;<br/>
<a id="pl.26.8"></a><var>26.8</var>    (11) tangible personal property and taxable services and construction materials, <br/>
<a id="pl.26.9"></a><var>26.9</var>supplies, and equipment exempt under section 
         <statute_ref>297A.68</statute_ref>, subdivision 41;<br/>
<a id="pl.26.10"></a><var>26.10</var>    (12) commuter rail vehicle and repair parts under section 
         <statute_ref>297A.70, subdivision <br/>
</statute_ref><a id="pl.26.11"></a><var>26.11</var>3, clause (11);<br/>
<a id="pl.26.12"></a><var>26.12</var>    (13) materials, supplies, and equipment for construction or improvement of projects <br/>
<a id="pl.26.13"></a><var>26.13</var>and facilities under section 
         <statute_ref>297A.71, subdivision 40</statute_ref>;<br/>
<a id="pl.26.14"></a><var>26.14</var>(14) materials, supplies, and equipment for construction or improvement of a meat <br/>
<a id="pl.26.15"></a><var>26.15</var>processing facility exempt under section 
         <statute_ref>297A.71, subdivision 41</statute_ref>; and<br/>
<a id="pl.26.16"></a><var>26.16</var>(15) materials, supplies, and equipment for construction, improvement, or expansion <br/>
<a id="pl.26.17"></a><var>26.17</var>of an aerospace defense manufacturing facility exempt under section 
         <statute_ref>297A.71, subdivision <br/>
</statute_ref><a id="pl.26.18"></a><var>26.18</var>42; and<br/>
<a id="pl.26.19"></a><var>26.19</var>(16) products and services for a regionwide public safety radio communication <br/>
<a id="pl.26.20"></a><var>26.20</var>system exempt under section 297A.70, subdivision 8, purchased after December 31, <br/>
<a id="pl.26.21"></a><var>26.21</var>2009, and before January 1, 2013.<br/>
<a id="pl.26.22"></a><var>26.22</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.26.23"></a><var>26.23</var>December 31, 2009. After December 31, 2013, purchasers may apply for a refund of tax <br/>
<a id="pl.26.24"></a><var>26.24</var>paid for qualifying purchases under this subdivision made after December 31, 2009, and <br/>
<a id="pl.26.25"></a><var>26.25</var>before January 1, 2013, in the manner provided in section 297A.75.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.26.26"></a><var>26.26</var>    Sec. 10. Minnesota Statutes 2010, section 297A.75, subdivision 2, is amended to read:<br/>
<a id="pl.26.27"></a><var>26.27</var>    Subd. 2. <b>Refund; eligible persons.</b> Upon application on forms prescribed by the <br/>
<a id="pl.26.28"></a><var>26.28</var>commissioner, a refund equal to the tax paid on the gross receipts of the exempt items <br/>
<a id="pl.26.29"></a><var>26.29</var>must be paid to the applicant. Only the following persons may apply for the refund:<br/>
<a id="pl.26.30"></a><var>26.30</var>    (1) for subdivision 1, clauses (1) to (3), the applicant must be the purchaser;<br/>
<a id="pl.26.31"></a><var>26.31</var>    (2) for subdivision 1, clauses (4) and (7), the applicant must be the governmental <br/>
<a id="pl.26.32"></a><var>26.32</var>subdivision;<br/>
<a id="pl.26.33"></a><var>26.33</var>    (3) for subdivision 1, clause (5), the applicant must be the recipient of the benefits <br/>
<a id="pl.26.34"></a><var>26.34</var>provided in United States Code, title 38, chapter 21;<br/>
<a id="pl.27.1"></a><var>27.1</var>    (4) for subdivision 1, clause (6), the applicant must be the owner of the homestead <br/>
<a id="pl.27.2"></a><var>27.2</var>property;<br/>
<a id="pl.27.3"></a><var>27.3</var>    (5) for subdivision 1, clause (8), the owner of the qualified low-income housing <br/>
<a id="pl.27.4"></a><var>27.4</var>project;<br/>
<a id="pl.27.5"></a><var>27.5</var>    (6) for subdivision 1, clause (9), the applicant must be a municipal electric utility or <br/>
<a id="pl.27.6"></a><var>27.6</var>a joint venture of municipal electric utilities;<br/>
<a id="pl.27.7"></a><var>27.7</var>    (7) for subdivision 1, clauses (10), (11), (14), and (15), the owner of the qualifying <br/>
<a id="pl.27.8"></a><var>27.8</var>business; and<br/>
<a id="pl.27.9"></a><var>27.9</var>    (8) for subdivision 1, clauses (12) and, (13), and (16), the applicant must be the <br/>
<a id="pl.27.10"></a><var>27.10</var>governmental entity that owns or contracts for the project or facility.<br/>
<a id="pl.27.11"></a><var>27.11</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.27.12"></a><var>27.12</var>December 31, 2009. After December 31, 2013, purchasers may apply for a refund of tax <br/>
<a id="pl.27.13"></a><var>27.13</var>paid for qualifying purchases under this subdivision made after December 31, 2009, and <br/>
<a id="pl.27.14"></a><var>27.14</var>before January 1, 2013, in the manner provided in section 297A.75.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.27.15"></a><var>27.15</var>    Sec. 11. Minnesota Statutes 2010, section 297A.75, subdivision 3, is amended to read:<br/>
<a id="pl.27.16"></a><var>27.16</var>    Subd. 3. <b>Application.</b> (a) The application must include sufficient information <br/>
<a id="pl.27.17"></a><var>27.17</var>to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, <br/>
<a id="pl.27.18"></a><var>27.18</var>subcontractor, or builder, under subdivision 1, clause (4), (5), (6), (7), (8), (9), (10), (11), <br/>
<a id="pl.27.19"></a><var>27.19</var>(12), (13), (14), or (15), or (16), the contractor, subcontractor, or builder must furnish to <br/>
<a id="pl.27.20"></a><var>27.20</var>the refund applicant a statement including the cost of the exempt items and the taxes paid <br/>
<a id="pl.27.21"></a><var>27.21</var>on the items unless otherwise specifically provided by this subdivision. The provisions of <br/>
<a id="pl.27.22"></a><var>27.22</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.27.23"></a><var>27.23</var>    (b) An applicant may not file more than two applications per calendar year for <br/>
<a id="pl.27.24"></a><var>27.24</var>refunds for taxes paid on capital equipment exempt under section 
         <statute_ref>297A.68, subdivision 5</statute_ref>.<br/>
<a id="pl.27.25"></a><var>27.25</var>    (c) Total refunds for purchases of items in section 
         <statute_ref>297A.71, subdivision 40</statute_ref>, must not <br/>
<a id="pl.27.26"></a><var>27.26</var>exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases <br/>
<a id="pl.27.27"></a><var>27.27</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.27.28"></a><var>27.28</var>subdivision 40, must not be filed until after June 30, 2009.<br/>
<a id="pl.27.29"></a><var>27.29</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.27.30"></a><var>27.30</var>December 31, 2009. After December 31, 2013, purchasers may apply for a refund of tax <br/>
<a id="pl.27.31"></a><var>27.31</var>paid for qualifying purchases under this subdivision made after December 31, 2009, and <br/>
<a id="pl.27.32"></a><var>27.32</var>before January 1, 2013, in the manner provided in section 297A.75.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.27.33"></a><var>27.33</var>    Sec. 12. Minnesota Statutes 2010, section 297A.82, subdivision 4, is amended to read:<br/>
<a id="pl.28.1"></a><var>28.1</var>    Subd. 4. <b>Exemptions.</b> (a) The following transactions are exempt from the tax <br/>
<a id="pl.28.2"></a><var>28.2</var>imposed in this chapter to the extent provided.<br/>
<a id="pl.28.3"></a><var>28.3</var>(b) The purchase or use of aircraft previously registered in Minnesota by a <br/>
<a id="pl.28.4"></a><var>28.4</var>corporation or partnership is exempt if the transfer constitutes a transfer within the <br/>
<a id="pl.28.5"></a><var>28.5</var>meaning of section 351 or 721 of the Internal Revenue Code.<br/>
<a id="pl.28.6"></a><var>28.6</var>(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer <br/>
<a id="pl.28.7"></a><var>28.7</var>of an aircraft for which a commercial use permit has been issued pursuant to section <br/>
<statute_ref><a id="pl.28.8"></a><var>28.8</var>360.654
         </statute_ref> is exempt, if the aircraft is resold while the permit is in effect. <br/>
<a id="pl.28.9"></a><var>28.9</var>(d) Airflight equipment when sold to, or purchased, stored, used, or consumed by <br/>
<a id="pl.28.10"></a><var>28.10</var>airline companies, as defined in section 
         <statute_ref>270.071, subdivision 4</statute_ref>, is exempt. For purposes of <br/>
<a id="pl.28.11"></a><var>28.11</var>this subdivision, "airflight equipment" includes airplanes and parts necessary for the repair <br/>
<a id="pl.28.12"></a><var>28.12</var>and maintenance of such airflight equipment, and flight simulators, but does not include <br/>
<a id="pl.28.13"></a><var>28.13</var>airplanes with a gross weight of less than 30,000 pounds that are used on intermittent or <br/>
<a id="pl.28.14"></a><var>28.14</var>irregularly timed flights. <br/>
<a id="pl.28.15"></a><var>28.15</var>(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined <br/>
<a id="pl.28.16"></a><var>28.16</var>in section 
         <statute_ref>360.511</statute_ref> and approved by the Federal Aviation Administration, and which the <br/>
<a id="pl.28.17"></a><var>28.17</var>seller delivers to a purchaser outside Minnesota or which, without intermediate use, is <br/>
<a id="pl.28.18"></a><var>28.18</var>shipped or transported outside Minnesota by the purchaser are exempt, but only if the <br/>
<a id="pl.28.19"></a><var>28.19</var>purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter <br/>
<a id="pl.28.20"></a><var>28.20</var>returned to a point within Minnesota, except in the course of interstate commerce or <br/>
<a id="pl.28.21"></a><var>28.21</var>isolated and occasional use, and will be registered in another state or country upon its <br/>
<a id="pl.28.22"></a><var>28.22</var>removal from Minnesota. This exemption applies even if the purchaser takes possession of <br/>
<a id="pl.28.23"></a><var>28.23</var>the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes <br/>
<a id="pl.28.24"></a><var>28.24</var>for a period not to exceed ten days prior to removing the aircraft from this state. <br/>
<a id="pl.28.25"></a><var>28.25</var>(f) The sale or purchase of aircraft and aircraft equipment, including parts necessary <br/>
<a id="pl.28.26"></a><var>28.26</var>for repair and maintenance of such airflight equipment, as defined under Federal Aviation <br/>
<a id="pl.28.27"></a><var>28.27</var>Regulations, Part 135, that has a maximum certified takeoff weight of 6,000 pounds or <br/>
<a id="pl.28.28"></a><var>28.28</var>more are exempt.<br/>
<a id="pl.28.29"></a><var>28.29</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.28.30"></a><var>28.30</var>June 30, 2011.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.28.31"></a><var>28.31</var>    Sec. 13. Minnesota Statutes 2010, section 297A.99, subdivision 1, is amended to read:<br/>
<a id="pl.28.32"></a><var>28.32</var>    Subdivision 1. <b>Authorization; scope.</b> (a) A political subdivision of this state may <br/>
<a id="pl.28.33"></a><var>28.33</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.28.34"></a><var>28.34</var>permitted by special law enacted prior to May 20, 2008, or (4) if the political subdivision <br/>
<a id="pl.28.35"></a><var>28.35</var>enacted and imposed the tax before January 1, 1982, and its predecessor provision.<br/>
<a id="pl.29.1"></a><var>29.1</var>    (b) This section governs the imposition of a general sales tax by the political <br/>
<a id="pl.29.2"></a><var>29.2</var>subdivision. The provisions of this section preempt the provisions of any special law:<br/>
<a id="pl.29.3"></a><var>29.3</var>    (1) enacted before June 2, 1997, or<br/>
<a id="pl.29.4"></a><var>29.4</var>    (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law <br/>
<a id="pl.29.5"></a><var>29.5</var>provision from this section's rules by reference.<br/>
<a id="pl.29.6"></a><var>29.6</var>    (c) This section does not apply to or preempt a sales tax on motor vehicles or a <br/>
<a id="pl.29.7"></a><var>29.7</var>special excise tax on motor vehicles.<br/>
<a id="pl.29.8"></a><var>29.8</var>    (d) Until after May 31, 2010, a political subdivision may not advertise, promote, <br/>
<a id="pl.29.9"></a><var>29.9</var>expend funds, or hold a referendum to support imposing a local option sales tax unless <br/>
<a id="pl.29.10"></a><var>29.10</var>it is for extension of an existing tax or the tax was authorized by a special law enacted <br/>
<a id="pl.29.11"></a><var>29.11</var>prior to May 20, 2008.<br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.29.12"></a><var>29.12</var>    Sec. 14. Minnesota Statutes 2010, section 297A.99, subdivision 3, is amended to read:<br/>
<a id="pl.29.13"></a><var>29.13</var>    Subd. 3. <b>Requirements for adoption, use, termination.</b> (a) Imposition of a local <br/>
<a id="pl.29.14"></a><var>29.14</var>sales tax is subject to approval by voters of the political subdivision at a general election. <br/>
<a id="pl.29.15"></a><var>29.15</var>The election must be conducted before the governing body of the political subdivision <br/>
<a id="pl.29.16"></a><var>29.16</var>requests legislative approval of the tax. A referendum on the issuance of bonds to be paid <br/>
<a id="pl.29.17"></a><var>29.17</var>from the proceeds of a local sales tax is not subject to sections 275.60 and 275.61.<br/>
<a id="pl.29.18"></a><var>29.18</var>(b) The proceeds of the tax must be dedicated exclusively to payment of the cost of a <br/>
<a id="pl.29.19"></a><var>29.19</var>specific capital improvement which is designated at least 90 days before the referendum <br/>
<a id="pl.29.20"></a><var>29.20</var>on imposition of the tax is conducted.<br/>
<a id="pl.29.21"></a><var>29.21</var>(c) The tax must terminate after the improvement designated under paragraph (b) <br/>
<a id="pl.29.22"></a><var>29.22</var>has been completed.<br/>
<a id="pl.29.23"></a><var>29.23</var>(d) After a sales tax imposed by a political subdivision has expired or been <br/>
<a id="pl.29.24"></a><var>29.24</var>terminated, the political subdivision is prohibited from imposing a local sales tax for a <br/>
<a id="pl.29.25"></a><var>29.25</var>period of one year. Notwithstanding subdivision 13, this paragraph applies to all local <br/>
<a id="pl.29.26"></a><var>29.26</var>sales taxes in effect at the time of or imposed after May 26, 1999.<br/>
<a id="pl.29.27"></a><var>29.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.15.0"></a><a id="pl.29.28"></a><var>29.28</var>    Sec. 15. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by <br/>
<a id="pl.29.29"></a><var>29.29</var>Laws 2006, chapter 259, article 3, section 3, is amended to read:<br/>
<a id="pl.29.30"></a><var>29.30</var>    Subdivision 1. <b>Sales tax authorized.</b> (a) Notwithstanding Minnesota Statutes, <br/>
<a id="pl.29.31"></a><var>29.31</var>section 477A.016, or any other contrary provision of law, ordinance, or city charter, the <br/>
<a id="pl.29.32"></a><var>29.32</var>city of Hermantown may, by ordinance, impose an additional sales tax of up to one <br/>
<a id="pl.29.33"></a><var>29.33</var>percent on sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that <br/>
<a id="pl.30.1"></a><var>30.1</var>occur within the city. The proceeds of the tax imposed under this section must be used to <br/>
<a id="pl.30.2"></a><var>30.2</var>meet the costs of:<br/>
<a id="pl.30.3"></a><var>30.3</var>    (1) extending a sewer interceptor line; <br/>
<a id="pl.30.4"></a><var>30.4</var>    (2) construction of a booster pump station, reservoirs, and related improvements <br/>
<a id="pl.30.5"></a><var>30.5</var>to the water system; and<br/>
<a id="pl.30.6"></a><var>30.6</var>    (3) construction of a building containing a police and fire station and an <br/>
<a id="pl.30.7"></a><var>30.7</var>administrative services facility.<br/>
<a id="pl.30.8"></a><var>30.8</var>(b) If the city imposed a sales tax of only one-half of one percent under paragraph (a), <br/>
<a id="pl.30.9"></a><var>30.9</var>it may increase the tax to one percent to fund the purposes under paragraph (a) provided it <br/>
<a id="pl.30.10"></a><var>30.10</var>is approved by the voters at a general or special election held before December 31, 2012.<br/>
<a id="pl.30.11"></a><var>30.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following compliance by the <br/>
<a id="pl.30.12"></a><var>30.12</var>city of Hermantown with Minnesota Statutes, section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.2.16.0"></a><a id="pl.30.13"></a><var>30.13</var>    Sec. 16. Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by <br/>
<a id="pl.30.14"></a><var>30.14</var>Laws 2005, First Special Session chapter 3, article 5, section 28, is amended to read:<br/>
<a id="pl.30.15"></a><var>30.15</var>    Subd. 3. <b>Use of revenues.</b> (a) Revenues received from the taxes authorized by <br/>
<a id="pl.30.16"></a><var>30.16</var>subdivisions 1 and 2 must be used by the city to pay for the cost of collecting and <br/>
<a id="pl.30.17"></a><var>30.17</var>administering the taxes and to pay for the following projects:<br/>
<a id="pl.30.18"></a><var>30.18</var>    (1) transportation infrastructure improvements including regional highway and <br/>
<a id="pl.30.19"></a><var>30.19</var>airport improvements;<br/>
<a id="pl.30.20"></a><var>30.20</var>    (2) improvements to the civic center complex;<br/>
<a id="pl.30.21"></a><var>30.21</var>    (3) a municipal water, sewer, and storm sewer project necessary to improve regional <br/>
<a id="pl.30.22"></a><var>30.22</var>ground water quality; and<br/>
<a id="pl.30.23"></a><var>30.23</var>    (4) construction of a regional recreation and sports center and other higher education <br/>
<a id="pl.30.24"></a><var>30.24</var>facilities available for both community and student use.<br/>
<a id="pl.30.25"></a><var>30.25</var>    (b) The total amount of capital expenditures or bonds for these projects listed in <br/>
<a id="pl.30.26"></a><var>30.26</var>paragraph (a) that may be paid from the revenues raised from the taxes authorized in this <br/>
<a id="pl.30.27"></a><var>30.27</var>section may not exceed $111,500,000. The total amount of capital expenditures or bonds <br/>
<a id="pl.30.28"></a><var>30.28</var>for the project in clause (4) that may be paid from the revenues raised from the taxes <br/>
<a id="pl.30.29"></a><var>30.29</var>authorized in this section may not exceed $28,000,000.<br/>
<a id="pl.30.30"></a><var>30.30</var>(c) In addition to the projects authorized in paragraph (a) and not subject to the <br/>
<a id="pl.30.31"></a><var>30.31</var>amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an <br/>
<a id="pl.30.32"></a><var>30.32</var>election under subdivision 5, paragraph (c), use the revenues received from the taxes and <br/>
<a id="pl.30.33"></a><var>30.33</var>bonds authorized in this section to pay the costs of or bonds for the following purposes:<br/>
<a id="pl.30.34"></a><var>30.34</var>(1) $47,000,000 for capital expenditures and bonds for transportation infrastructure <br/>
<a id="pl.30.35"></a><var>30.35</var>improvements including regional highway and airport improvements, but excluding any <br/>
<a id="pl.31.1"></a><var>31.1</var>transportation improvements related to a railroad bypass that would divert rail traffic <br/>
<a id="pl.31.2"></a><var>31.2</var>from the city of Rochester;<br/>
<a id="pl.31.3"></a><var>31.3</var>(2) $26,500,000 for capital expenditures and bonds for higher education facilities in <br/>
<a id="pl.31.4"></a><var>31.4</var>the city;<br/>
<a id="pl.31.5"></a><var>31.5</var>(3) $40,500,000 for capital expenditures and bonds for improvements to regional <br/>
<a id="pl.31.6"></a><var>31.6</var>youth and elder community facilities;<br/>
<a id="pl.31.7"></a><var>31.7</var>(4) $8,000,000 for capital expenditures and bonds for construction of regional public <br/>
<a id="pl.31.8"></a><var>31.8</var>safety facilities; and <br/>
<a id="pl.31.9"></a><var>31.9</var>(5) $38,000,000 for project expenditures and bonds for any economic development <br/>
<a id="pl.31.10"></a><var>31.10</var>purposes authorized under Minnesota Statutes, chapter 469.<br/>
<a id="pl.31.11"></a><var>31.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.17.0"></a><a id="pl.31.12"></a><var>31.12</var>    Sec. 17. Laws 1998, chapter 389, article 8, section 43, subdivision 4, as amended by <br/>
<a id="pl.31.13"></a><var>31.13</var>Laws 2005, First Special Session chapter 3, article 5, section 29, is amended to read:<br/>
<a id="pl.31.14"></a><var>31.14</var>    Subd. 4. <b>Bonding authority.</b> (a) The city may issue bonds under Minnesota <br/>
<a id="pl.31.15"></a><var>31.15</var>Statutes, chapter 475, to finance the capital expenditure and improvement projects. <br/>
<a id="pl.31.16"></a><var>31.16</var>An election to approve up to $71,500,000 in bonds under Minnesota Statutes, section <br/>
<statute_ref><a id="pl.31.17"></a><var>31.17</var>475.58
         </statute_ref>, may be held in combination with the election to authorize imposition of the tax <br/>
<a id="pl.31.18"></a><var>31.18</var>under subdivision 1. Whether to permit imposition of the tax and issuance of bonds <br/>
<a id="pl.31.19"></a><var>31.19</var>may be posed to the voters as a single question. The question must state that the sales <br/>
<a id="pl.31.20"></a><var>31.20</var>tax revenues are pledged to pay the bonds, but that the bonds are general obligations <br/>
<a id="pl.31.21"></a><var>31.21</var>and will be guaranteed by the city's property taxes. An election to approve up to an <br/>
<a id="pl.31.22"></a><var>31.22</var>additional $40,000,000 of bonds under Minnesota Statutes, section 
         <statute_ref>475.58</statute_ref>, may be held <br/>
<a id="pl.31.23"></a><var>31.23</var>in combination with the election to authorize extension of the tax under subdivision 5, <br/>
<a id="pl.31.24"></a><var>31.24</var>paragraph (b). An election to approve bonds under Minnesota Statutes, section 475.58, <br/>
<a id="pl.31.25"></a><var>31.25</var>in an amount not to exceed $160,000,000 plus an amount equal to the costs of issuance <br/>
<a id="pl.31.26"></a><var>31.26</var>of the bonds, may be held in combination with the election to authorize the extension of <br/>
<a id="pl.31.27"></a><var>31.27</var>the tax under subdivision 5, paragraph (c).<br/>
<a id="pl.31.28"></a><var>31.28</var>    (b) The city may shall enter into an agreement with Olmsted County under which the <br/>
<a id="pl.31.29"></a><var>31.29</var>city and the county agree to jointly undertake and finance certain roadway infrastructure <br/>
<a id="pl.31.30"></a><var>31.30</var>improvements. The agreement may shall provide that the city will make available to the <br/>
<a id="pl.31.31"></a><var>31.31</var>county a portion of the sales tax revenues collected pursuant to the authority granted in <br/>
<a id="pl.31.32"></a><var>31.32</var>this section and the bonding authority provided in this subdivision. The county may, <br/>
<a id="pl.31.33"></a><var>31.33</var>pursuant to the agreement, issue its general obligation bonds in a principal amount not <br/>
<a id="pl.31.34"></a><var>31.34</var>exceeding the amount authorized by its agreement with the city payable primarily from <br/>
<a id="pl.31.35"></a><var>31.35</var>the sales tax revenues from the city under the agreement. The county's bonds must be <br/>
<a id="pl.32.1"></a><var>32.1</var>issued in accordance with the provisions of Minnesota Statutes, chapter 475, except that <br/>
<a id="pl.32.2"></a><var>32.2</var>no election is required for the issuance of the bonds and the bonds are not included in <br/>
<a id="pl.32.3"></a><var>32.3</var>the net debt of the county.<br/>
<a id="pl.32.4"></a><var>32.4</var>    (b) (c) The issuance of bonds under this subdivision is not subject to Minnesota <br/>
<a id="pl.32.5"></a><var>32.5</var>Statutes, section 
         <statute_ref>275.60</statute_ref>.<br/>
<a id="pl.32.6"></a><var>32.6</var>    (c) (d)  The bonds are not included in computing any debt limitation applicable to the <br/>
<a id="pl.32.7"></a><var>32.7</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.32.8"></a><var>32.8</var>and interest on the bonds is not subject to any levy limitation.<br/>
<a id="pl.32.9"></a><var>32.9</var>    (e) The aggregate principal amount of bonds, plus the aggregate of the taxes used <br/>
<a id="pl.32.10"></a><var>32.10</var>directly to pay eligible capital expenditures and improvements for projects listed in <br/>
<a id="pl.32.11"></a><var>32.11</var>subdivision 3, paragraph (a), may not exceed  $111,500,000, plus an amount equal to the <br/>
<a id="pl.32.12"></a><var>32.12</var>costs related to issuance of the bonds. The aggregate principal amount of bonds plus the <br/>
<a id="pl.32.13"></a><var>32.13</var>aggregate of the taxes used directly to pay the costs of eligible projects under subdivision <br/>
<a id="pl.32.14"></a><var>32.14</var>3, paragraph (c), may not exceed $160,000,000 plus an amount equal to the costs of <br/>
<a id="pl.32.15"></a><var>32.15</var>issuance of the bonds.<br/>
<a id="pl.32.16"></a><var>32.16</var>    (d) (f) The taxes may be pledged to and used for the payment of the bonds and <br/>
<a id="pl.32.17"></a><var>32.17</var>any bonds issued to refund them, only if the bonds and any refunding bonds are general <br/>
<a id="pl.32.18"></a><var>32.18</var>obligations of the city.<br/>
<a id="pl.32.19"></a><var>32.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.18.0"></a><a id="pl.32.20"></a><var>32.20</var>    Sec. 18. Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by <br/>
<a id="pl.32.21"></a><var>32.21</var>Laws 2005, First Special Session chapter 3, article 5, section 30, is amended to read:<br/>
<a id="pl.32.22"></a><var>32.22</var>    Subd. 5. <b>Termination of taxes.</b> (a) The taxes imposed under subdivisions 1 and <br/>
<a id="pl.32.23"></a><var>32.23</var>2 expire at the later of (1) December 31, 2009, or (2) when the city council determines <br/>
<a id="pl.32.24"></a><var>32.24</var>that sufficient funds have been received from the taxes to finance the first $71,500,000 <br/>
<a id="pl.32.25"></a><var>32.25</var>of capital expenditures and bonds for the projects authorized in subdivision 3, including <br/>
<a id="pl.32.26"></a><var>32.26</var>the amount to prepay or retire at maturity the principal, interest, and premium due on any <br/>
<a id="pl.32.27"></a><var>32.27</var>bonds issued for the projects under subdivision 4, unless the taxes are extended as allowed <br/>
<a id="pl.32.28"></a><var>32.28</var>in paragraph (b). Any funds remaining after completion of the project and retirement or <br/>
<a id="pl.32.29"></a><var>32.29</var>redemption of the bonds shall also be used to fund the projects under subdivision 3. The <br/>
<a id="pl.32.30"></a><var>32.30</var>taxes imposed under subdivisions 1 and 2 may expire at an earlier time if the city so <br/>
<a id="pl.32.31"></a><var>32.31</var>determines by ordinance.<br/>
<a id="pl.32.32"></a><var>32.32</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.32.33"></a><var>32.33</var>other contrary provision of law, ordinance, or city charter, the city of Rochester may, by <br/>
<a id="pl.32.34"></a><var>32.34</var>ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009, <br/>
<a id="pl.32.35"></a><var>32.35</var>if approved by the voters of the city at a special election in 2005 or the general election in <br/>
<a id="pl.33.1"></a><var>33.1</var>2006. The question put to the voters must indicate that an affirmative vote would allow <br/>
<a id="pl.33.2"></a><var>33.2</var>up to an additional $40,000,000 of sales tax revenues be raised and up to $40,000,000 <br/>
<a id="pl.33.3"></a><var>33.3</var>of bonds to be issued above the amount authorized in the June 23, 1998, referendum for <br/>
<a id="pl.33.4"></a><var>33.4</var>the projects specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are <br/>
<a id="pl.33.5"></a><var>33.5</var>extended under this paragraph, the taxes expire when the city council determines that <br/>
<a id="pl.33.6"></a><var>33.6</var>sufficient funds have been received from the taxes to finance the projects and to prepay <br/>
<a id="pl.33.7"></a><var>33.7</var>or retire at maturity the principal, interest, and premium due on any bonds issued for the <br/>
<a id="pl.33.8"></a><var>33.8</var>projects under subdivision 4. Any funds remaining after completion of the project and <br/>
<a id="pl.33.9"></a><var>33.9</var>retirement or redemption of the bonds may be placed in the general fund of the city.<br/>
<a id="pl.33.10"></a><var>33.10</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.33.11"></a><var>33.11</var>other contrary provision of law, ordinance, or city charter, the city of Rochester may, by <br/>
<a id="pl.33.12"></a><var>33.12</var>ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond the date the city <br/>
<a id="pl.33.13"></a><var>33.13</var>council determines that sufficient funds have been received from the taxes to finance <br/>
<a id="pl.33.14"></a><var>33.14</var>$111,500,000 of expenditures and bonds for the projects authorized in subdivision 3, <br/>
<a id="pl.33.15"></a><var>33.15</var>paragraph (a), plus an amount equal to the costs of issuance of the bonds and including <br/>
<a id="pl.33.16"></a><var>33.16</var>the amount to prepay or retire at maturity the principal, interest, and premiums due on <br/>
<a id="pl.33.17"></a><var>33.17</var>any bonds issued for the projects under subdivision 4, paragraph (a), if approved by the <br/>
<a id="pl.33.18"></a><var>33.18</var>voters of the city at the general election in 2012. If the election to authorize the additional <br/>
<a id="pl.33.19"></a><var>33.19</var>$160,000,000 of bonds plus an amount equal to the costs of the issuance of the bonds is <br/>
<a id="pl.33.20"></a><var>33.20</var>placed on the general election ballot in 2012, the city may continue to collect the taxes <br/>
<a id="pl.33.21"></a><var>33.21</var>authorized in subdivisions 1 and 2 until December 31, 2012. The question put to the <br/>
<a id="pl.33.22"></a><var>33.22</var>voters must indicate that an affirmative vote would allow sales tax revenues be raised for <br/>
<a id="pl.33.23"></a><var>33.23</var>an extended period of time and an additional $160,000,000 of bonds plus an amount <br/>
<a id="pl.33.24"></a><var>33.24</var>equal to the costs of issuance of the bonds, to be issued above the amount authorized in <br/>
<a id="pl.33.25"></a><var>33.25</var>the previous elections required under paragraphs (a) and (b) for the projects and amounts <br/>
<a id="pl.33.26"></a><var>33.26</var>specified in subdivision 3. The issuance of bonds under this subdivision is not subject to <br/>
<a id="pl.33.27"></a><var>33.27</var>Minnesota Statutes, sections 275.60 and 275.61. If the taxes authorized in subdivisions 1 <br/>
<a id="pl.33.28"></a><var>33.28</var>and 2 are extended under this paragraph, the taxes expire when the city council determines <br/>
<a id="pl.33.29"></a><var>33.29</var>that $160,000,000 has been received from the taxes to finance the projects plus an amount <br/>
<a id="pl.33.30"></a><var>33.30</var>sufficient to prepay or retire at maturity the principal, interest, and premium due on any <br/>
<a id="pl.33.31"></a><var>33.31</var>bonds issued for the projects under subdivision 4, including any bonds issued to refund the <br/>
<a id="pl.33.32"></a><var>33.32</var>bonds. Any funds remaining after completion of the projects and retirement or redemption <br/>
<a id="pl.33.33"></a><var>33.33</var>of the bonds may be placed in the general fund of the city.<br/>
<a id="pl.33.34"></a><var>33.34</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.33.35"></a><var>33.35</var>governing body of the city of Rochester with Minnesota Statutes, section 645.021, <br/>
<a id="pl.33.36"></a><var>33.36</var>subdivision 3.<br/>
<br/>
<a id="bill.2.19.0"></a><a id="pl.34.1"></a><var>34.1</var>    Sec. 19. Laws 2008, chapter 366, article 7, section 19, subdivision 3, is amended to <br/>
<a id="pl.34.2"></a><var>34.2</var>read:<br/>
<a id="pl.34.3"></a><var>34.3</var>    Subd. 3. <b>Use of revenues.</b> Notwithstanding Minnesota Statutes, section 297A.99, <br/>
<a id="pl.34.4"></a><var>34.4</var>subdivision 3, paragraph (b), the proceeds of the tax imposed under this section shall be <br/>
<a id="pl.34.5"></a><var>34.5</var>used to pay for the costs of acquisition, construction, improvement, and development of <br/>
<a id="pl.34.6"></a><var>34.6</var>a regional parks, bicycle trails, park land, open space, and pedestrian bridge walkways, <br/>
<a id="pl.34.7"></a><var>34.7</var>as described in the city improvement plan adopted by the city council by resolution on <br/>
<a id="pl.34.8"></a><var>34.8</var>December 12, 2006, and land and buildings for a community and recreation center. The <br/>
<a id="pl.34.9"></a><var>34.9</var>total amount of revenues from the taxes in subdivisions 1 and 2 that may be used to fund <br/>
<a id="pl.34.10"></a><var>34.10</var>these projects is $12,000,000 plus any associated bond costs.<br/>
<a id="pl.34.11"></a><var>34.11</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.34.12"></a><var>34.12</var>governing body of the city of Clearwater with Minnesota Statutes, section 645.021, <br/>
<a id="pl.34.13"></a><var>34.13</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.2.20.0"></a><a id="pl.34.14"></a><var>34.14</var>    Sec. 20. <b>CITY OF FERGUS FALLS; SALES AND USE TAX AUTHORIZED.</b><br/>
<a id="pl.34.15"></a><var>34.15</var>    Subdivision 1. <b>Sales and use tax.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.34.16"></a><var>34.16</var>297A.99, subdivision 1, or 477A.016, or any other provision of law, ordinance, or city <br/>
<a id="pl.34.17"></a><var>34.17</var>charter, as approved by the voters at the November 2, 2010, general election, the city <br/>
<a id="pl.34.18"></a><var>34.18</var>of Fergus Falls may impose by ordinance a sales and use tax of up to one-half of one <br/>
<a id="pl.34.19"></a><var>34.19</var>percent for the purposes specified in subdivision 2.  Except as provided in this section, the <br/>
<a id="pl.34.20"></a><var>34.20</var>provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, <br/>
<a id="pl.34.21"></a><var>34.21</var>collection, and enforcement of the tax authorized under this subdivision.<br/>
<a id="pl.34.22"></a><var>34.22</var>    Subd. 2. <b>Use of revenues.</b> Revenues received from taxes authorized by subdivision <br/>
<a id="pl.34.23"></a><var>34.23</var>1 must be used by the city of Fergus Falls to pay the cost of collecting the tax and to pay <br/>
<a id="pl.34.24"></a><var>34.24</var>for all or part of the costs of the acquisition and betterment of a regional community ice <br/>
<a id="pl.34.25"></a><var>34.25</var>arena facility. Authorized expenses include, but are not limited to, acquiring property, <br/>
<a id="pl.34.26"></a><var>34.26</var>predesign, design, and paying construction, furnishing, and equipment costs related to <br/>
<a id="pl.34.27"></a><var>34.27</var>the facility and paying debt service on bonds or other obligations issued by the Fergus <br/>
<a id="pl.34.28"></a><var>34.28</var>Falls Port Authority to finance the facility.<br/>
<a id="pl.34.29"></a><var>34.29</var>    Subd. 3. <b>Termination of taxes.</b> The tax imposed under this section expires when <br/>
<a id="pl.34.30"></a><var>34.30</var>the Fergus Falls City Council determines that sufficient funds have been received from <br/>
<a id="pl.34.31"></a><var>34.31</var>the taxes to finance the facility and to prepay or retire at maturity the principal, interest, <br/>
<a id="pl.34.32"></a><var>34.32</var>and premium due on any bonds, including refunding bonds, issued by the Fergus Falls <br/>
<a id="pl.34.33"></a><var>34.33</var>Port Authority for the facility. Any funds remaining after completion of the facility and <br/>
<a id="pl.34.34"></a><var>34.34</var>retirement or redemption of the bonds may be placed in the general fund of the city of <br/>
<a id="pl.35.1"></a><var>35.1</var>Fergus Falls. The tax imposed under subdivision 1 may expire at an earlier time if the <br/>
<a id="pl.35.2"></a><var>35.2</var>city so determines by ordinance.<br/>
<a id="pl.35.3"></a><var>35.3</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body <br/>
<a id="pl.35.4"></a><var>35.4</var>of the city of Fergus Falls and its chief clerical officer timely comply with Minnesota <br/>
<a id="pl.35.5"></a><var>35.5</var>Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.2.21.0"></a><a id="pl.35.6"></a><var>35.6</var>    Sec. 21. <b>CITY OF LANESBORO; SALES TAX AUTHORIZED.</b><br/>
<a id="pl.35.7"></a><var>35.7</var>    Subdivision 1. <b>Sales and use tax authorized.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.35.8"></a><var>35.8</var>section 477A.016, or any other provision of law, ordinance, or city charter, as approved by <br/>
<a id="pl.35.9"></a><var>35.9</var>the voters at the November 2, 2010, general election, the city of Lanesboro may impose by <br/>
<a id="pl.35.10"></a><var>35.10</var>ordinance a sales and use tax of up to one-half of one percent for the purposes specified in <br/>
<a id="pl.35.11"></a><var>35.11</var>subdivision 2. Except as provided in this section, the provisions of Minnesota Statutes, <br/>
<a id="pl.35.12"></a><var>35.12</var>section 297A.99, govern the imposition of the tax authorized under this subdivision.<br/>
<a id="pl.35.13"></a><var>35.13</var>    Subd. 2. <b>Use of revenues.</b> Revenues received from the tax authorized under <br/>
<a id="pl.35.14"></a><var>35.14</var>subdivision 1 must be used by the city of Lanesboro to pay the costs of collecting the tax <br/>
<a id="pl.35.15"></a><var>35.15</var>and to pay for all or a part of the improvements to city streets and utility systems, and the <br/>
<a id="pl.35.16"></a><var>35.16</var>betterment of city municipal buildings consisting of (i) street and utility improvements to <br/>
<a id="pl.35.17"></a><var>35.17</var>Calhoun Avenue, Fillmore Avenue, Kenilworth Avenue, Pleasant Street, Kirkwood Street, <br/>
<a id="pl.35.18"></a><var>35.18</var>Auburn Avenue, and Zenith Street, and street light replacement on State Highways 250 <br/>
<a id="pl.35.19"></a><var>35.19</var>and 16; (ii) improvements to utility systems consisting of wastewater treatment facility <br/>
<a id="pl.35.20"></a><var>35.20</var>improvements and electric utility improvements to the Lanesboro High Hazard Dam; and <br/>
<a id="pl.35.21"></a><var>35.21</var>(iii) improvements to the Lanesboro community center, library, and city hall, including <br/>
<a id="pl.35.22"></a><var>35.22</var>paying debt service on bonds or other obligations issued to fund these projects under <br/>
<a id="pl.35.23"></a><var>35.23</var>subdivision 3. The total amount of revenues from the taxes in subdivision 1 that may be <br/>
<a id="pl.35.24"></a><var>35.24</var>used to fund these projects is $800,000 plus any associated bond costs.<br/>
<a id="pl.35.25"></a><var>35.25</var>    Subd. 3. <b>Bonding authority.</b> The city of Lanesboro may issue bonds under <br/>
<a id="pl.35.26"></a><var>35.26</var>Minnesota Statutes, chapter 475, to pay capital and administrative expenses related to the <br/>
<a id="pl.35.27"></a><var>35.27</var>projects authorized in subdivision 2. An election to approve the bonds under Minnesota <br/>
<a id="pl.35.28"></a><var>35.28</var>Statutes, section 475.58, is not required. The issuance of bonds under this subdivision <br/>
<a id="pl.35.29"></a><var>35.29</var>is not subject to Minnesota Statutes, sections 275.60 and 275.61. The bonds are not <br/>
<a id="pl.35.30"></a><var>35.30</var>included in computing any debt limitation applicable to the city and the levy of taxes <br/>
<a id="pl.35.31"></a><var>35.31</var>under Minnesota Statutes, section 475.61, to pay principal and interest on the bonds is <br/>
<a id="pl.35.32"></a><var>35.32</var>not subject to any levy limitation.<br/>
<a id="pl.35.33"></a><var>35.33</var>The aggregate principal amount of the bonds plus the aggregate of the taxes used <br/>
<a id="pl.35.34"></a><var>35.34</var>directly to pay costs of the projects listed in subdivision 2 may not exceed $800,000, plus <br/>
<a id="pl.35.35"></a><var>35.35</var>an amount equal to the costs related to issuance of the bonds and capitalized interest. <br/>
<a id="pl.36.1"></a><var>36.1</var>The taxes authorized in subdivision 1 may be pledged and used for payments of <br/>
<a id="pl.36.2"></a><var>36.2</var>the bonds and bonds issued to refund them, only if the bonds and any refunding bonds <br/>
<a id="pl.36.3"></a><var>36.3</var>are general obligations of the city.<br/>
<a id="pl.36.4"></a><var>36.4</var>    Subd. 4. <b>Termination of tax.</b> The tax imposed under subdivision 1 expires when <br/>
<a id="pl.36.5"></a><var>36.5</var>the Lanesboro City Council determines that sufficient funds have been raised from the <br/>
<a id="pl.36.6"></a><var>36.6</var>taxes to finance the projects authorized under subdivision 2 and to prepay or retire at <br/>
<a id="pl.36.7"></a><var>36.7</var>maturity the principal, interest, and premium due on any bonds issued under subdivision 3. <br/>
<a id="pl.36.8"></a><var>36.8</var>Any funds remaining after completion of the project and retirement or redemption of the <br/>
<a id="pl.36.9"></a><var>36.9</var>bonds may be placed in the general fund of the city. The tax imposed under subdivision 1 <br/>
<a id="pl.36.10"></a><var>36.10</var>may expire at an earlier time if the city so determines by ordinance.<br/>
<a id="pl.36.11"></a><var>36.11</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.36.12"></a><var>36.12</var>the city of Lanesboro and its chief clerical officer comply with Minnesota Statutes, section <br/>
<a id="pl.36.13"></a><var>36.13</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.2.22.0"></a><a id="pl.36.14"></a><var>36.14</var>    Sec. 22. <b>CITY OF HUTCHINSON; TAXES AUTHORIZED.</b><br/>
<a id="pl.36.15"></a><var>36.15</var>    Subdivision 1. <b>Sales and use tax.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.36.16"></a><var>36.16</var>477A.016, or any other provision of law, ordinance, or city charter, as approved by <br/>
<a id="pl.36.17"></a><var>36.17</var>the voters at a referendum held at the 2010 general election, the city of Hutchinson <br/>
<a id="pl.36.18"></a><var>36.18</var>may impose by ordinance a sales and use tax of up to one-half of one percent for the <br/>
<a id="pl.36.19"></a><var>36.19</var>purposes specified in subdivision 3. Except as otherwise provided in this section, <br/>
<a id="pl.36.20"></a><var>36.20</var>Minnesota Statutes, section 297A.99, governs the imposition, administration, collection, <br/>
<a id="pl.36.21"></a><var>36.21</var>and enforcement of the tax authorized under this subdivision. Minnesota Statutes, section <br/>
<a id="pl.36.22"></a><var>36.22</var>297A.99, subdivision 1, paragraph (d), does not apply to this section.<br/>
<a id="pl.36.23"></a><var>36.23</var>    Subd. 2. <b>Excise tax authorized.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.36.24"></a><var>36.24</var>477A.016, or any other provision of law, ordinance, or city charter, the city of Hutchinson <br/>
<a id="pl.36.25"></a><var>36.25</var>may impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up <br/>
<a id="pl.36.26"></a><var>36.26</var>to $20 per motor vehicle, as defined by ordinance, purchased or acquired from any person <br/>
<a id="pl.36.27"></a><var>36.27</var>engaged within the city in the business of selling motor vehicles at retail.<br/>
<a id="pl.36.28"></a><var>36.28</var>    Subd. 3. <b>Use of revenues.</b> Revenues received from the taxes authorized by this <br/>
<a id="pl.36.29"></a><var>36.29</var>section must be used to pay the cost of collecting and administering the tax and to finance <br/>
<a id="pl.36.30"></a><var>36.30</var>the costs of constructing the water treatment facility and renovating the wastewater <br/>
<a id="pl.36.31"></a><var>36.31</var>treatment facility in the city of Hutchinson. Authorized costs include, but are not limited <br/>
<a id="pl.36.32"></a><var>36.32</var>to, construction and engineering costs of the projects and associated bond costs.<br/>
<a id="pl.36.33"></a><var>36.33</var>    Subd. 4. <b>Termination of tax.</b> The taxes authorized under subdivisions 1 and 2 <br/>
<a id="pl.36.34"></a><var>36.34</var>terminate at the earlier of: (1) 18 years after the date of initial imposition of the tax; or <br/>
<a id="pl.36.35"></a><var>36.35</var>(2) when the Hutchinson City Council determines that the amount of revenues raised is <br/>
<a id="pl.37.1"></a><var>37.1</var>sufficient to pay for the projects under subdivision 3, plus the amount needed to finance <br/>
<a id="pl.37.2"></a><var>37.2</var>the capital and administrative costs for the projects specified in subdivision 3, and to repay <br/>
<a id="pl.37.3"></a><var>37.3</var>or retire at maturity the principal, interest, and premium due on any bonds issued for the <br/>
<a id="pl.37.4"></a><var>37.4</var>projects. Any funds remaining after completion of the projects specified in subdivision <br/>
<a id="pl.37.5"></a><var>37.5</var>3 and retirement or redemption of the associated bonds may be placed in the general <br/>
<a id="pl.37.6"></a><var>37.6</var>fund of the city. The taxes imposed under subdivisions 1 and 2 may expire at an earlier <br/>
<a id="pl.37.7"></a><var>37.7</var>time if the city so determines by ordinance. <br/>
<a id="pl.37.8"></a><var>37.8</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.37.9"></a><var>37.9</var>governing body of the city of Hutchinson with Minnesota Statutes, section 645.021, <br/>
<a id="pl.37.10"></a><var>37.10</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.37.13"></a><var>37.13</var>    Section 1. Minnesota Statutes 2010, section 97A.061, subdivision 1, is amended to <br/>
<a id="pl.37.14"></a><var>37.14</var>read:<br/>
<a id="pl.37.15"></a><var>37.15</var>    Subdivision 1. <b>Applicability; amount.</b> (a) The commissioner shall annually make a <br/>
<a id="pl.37.16"></a><var>37.16</var>payment to each county having public hunting areas and game refuges. Money to make <br/>
<a id="pl.37.17"></a><var>37.17</var>the payments is annually appropriated for that purpose from the general fund. Except as <br/>
<a id="pl.37.18"></a><var>37.18</var>provided in paragraph (b), this section does not apply to state trust fund land and other <br/>
<a id="pl.37.19"></a><var>37.19</var>state land not purchased for game refuge or public hunting purposes. Except as provided <br/>
<a id="pl.37.20"></a><var>37.20</var>in paragraph (b), the payment shall be the greatest of:<br/>
<a id="pl.37.21"></a><var>37.21</var>(1) 35 30.8 percent of the gross receipts from all special use permits and leases of <br/>
<a id="pl.37.22"></a><var>37.22</var>land acquired for public hunting and game refuges;<br/>
<a id="pl.37.23"></a><var>37.23</var>(2) 50 44 cents per acre on land purchased actually used for public hunting or game <br/>
<a id="pl.37.24"></a><var>37.24</var>refuges; or<br/>
<a id="pl.37.25"></a><var>37.25</var>(3) three-fourths of one .66 percent of the appraised value of purchased land actually <br/>
<a id="pl.37.26"></a><var>37.26</var>used for public hunting and game refuges.<br/>
<a id="pl.37.27"></a><var>37.27</var>(b) The payment shall be 50 percent of the dollar amount adjusted for inflation as <br/>
<a id="pl.37.28"></a><var>37.28</var>determined under section 
         <statute_ref>477A.12, subdivision 1</statute_ref>, paragraph (a), clause (1), multiplied <br/>
<a id="pl.37.29"></a><var>37.29</var>by the number of acres of land in the county that are owned by another state agency for <br/>
<a id="pl.37.30"></a><var>37.30</var>military purposes and designated as a game refuge under section 
         <statute_ref>97A.085</statute_ref>.<br/>
<a id="pl.37.31"></a><var>37.31</var>(c) The payment must be reduced by the amount paid under subdivision 3 for <br/>
<a id="pl.37.32"></a><var>37.32</var>croplands managed for wild geese.<br/>
<a id="pl.38.1"></a><var>38.1</var>(d) The appraised value is the purchase price for five years after acquisition. <br/>
<a id="pl.38.2"></a><var>38.2</var>The appraised value shall be determined by the county assessor every five years after <br/>
<a id="pl.38.3"></a><var>38.3</var>acquisition.<br/>
<a id="pl.38.4"></a><var>38.4</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.38.5"></a><var>38.5</var>2011 and thereafter.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.38.6"></a><var>38.6</var>    Sec. 2. Minnesota Statutes 2010, section 97A.061, subdivision 3, is amended to read:<br/>
<a id="pl.38.7"></a><var>38.7</var>    Subd. 3. <b>Goose management croplands.</b> (a) The commissioner shall make a <br/>
<a id="pl.38.8"></a><var>38.8</var>payment on July 1 of each year to each county where the state owns more than 1,000 acres <br/>
<a id="pl.38.9"></a><var>38.9</var>of crop land, for wild goose management purposes. The payment shall be equal to 88 <br/>
<a id="pl.38.10"></a><var>38.10</var>percent of the taxes assessed on comparable, privately owned, adjacent land. Money to <br/>
<a id="pl.38.11"></a><var>38.11</var>make the payments is annually appropriated for that purpose from the general fund. The <br/>
<a id="pl.38.12"></a><var>38.12</var>county treasurer shall allocate and distribute the payment as provided in subdivision 2.<br/>
<a id="pl.38.13"></a><var>38.13</var>(b) The land used for goose management under this subdivision is exempt from <br/>
<a id="pl.38.14"></a><var>38.14</var>taxation as provided in sections 
         <statute_ref>272.01</statute_ref> and 
         <statute_ref>273.19</statute_ref>.<br/>
<a id="pl.38.15"></a><var>38.15</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.38.16"></a><var>38.16</var>2011 and thereafter.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.38.17"></a><var>38.17</var>    Sec. 3. Minnesota Statutes 2010, section 270A.03, subdivision 7, is amended to read:<br/>
<a id="pl.38.18"></a><var>38.18</var>    Subd. 7. <b>Refund.</b> "Refund" means an individual income tax refund or political <br/>
<a id="pl.38.19"></a><var>38.19</var>contribution refund, pursuant to chapter 290, or a property tax credit or refund, pursuant to <br/>
<a id="pl.38.20"></a><var>38.20</var>chapter 290A, or a sustainable forest tax payment to a claimant under chapter 290C.<br/>
<a id="pl.38.21"></a><var>38.21</var>For purposes of this chapter, lottery prizes, as set forth in section 
         <statute_ref>349A.08, <br/>
<a id="pl.38.22"></a><var>38.22</var>subdivision 8
         </statute_ref>, and amounts granted to persons by the legislature on the recommendation <br/>
<a id="pl.38.23"></a><var>38.23</var>of the joint senate-house of representatives Subcommittee on Claims shall be treated <br/>
<a id="pl.38.24"></a><var>38.24</var>as refunds.<br/>
<a id="pl.38.25"></a><var>38.25</var>In the case of a joint property tax refund payable to spouses under chapter 290A, <br/>
<a id="pl.38.26"></a><var>38.26</var>the refund shall be considered as belonging to each spouse in the proportion of the total <br/>
<a id="pl.38.27"></a><var>38.27</var>refund that equals each spouse's proportion of the total income determined under section <br/>
<statute_ref><a id="pl.38.28"></a><var>38.28</var>290A.03, subdivision 3
         </statute_ref>. In the case of a joint income tax refund under chapter 289A, the <br/>
<a id="pl.38.29"></a><var>38.29</var>refund shall be considered as belonging to each spouse in the proportion of the total <br/>
<a id="pl.38.30"></a><var>38.30</var>refund that equals each spouse's proportion of the total taxable income determined under <br/>
<a id="pl.38.31"></a><var>38.31</var>section 
         <statute_ref>290.01, subdivision 29</statute_ref>. The commissioner shall remit the entire refund to the <br/>
<a id="pl.38.32"></a><var>38.32</var>claimant agency, which shall, upon the request of the spouse who does not owe the debt, <br/>
<a id="pl.38.33"></a><var>38.33</var>determine the amount of the refund belonging to that spouse and refund the amount to <br/>
<a id="pl.39.1"></a><var>39.1</var>that spouse. For court fines, fees, and surcharges and court-ordered restitution under <br/>
<a id="pl.39.2"></a><var>39.2</var>section 
         <statute_ref>611A.04, subdivision 2</statute_ref>, the notice provided by the commissioner of revenue under <br/>
<a id="pl.39.3"></a><var>39.3</var>section 
         <statute_ref>270A.07, subdivision 2</statute_ref>, paragraph (b), serves as the appropriate legal notice <br/>
<a id="pl.39.4"></a><var>39.4</var>to the spouse who does not owe the debt.<br/>
<a id="pl.39.5"></a><var>39.5</var><b>EFFECTIVE DATE.</b>This section is effective for refund claims based on <br/>
<a id="pl.39.6"></a><var>39.6</var>contributions made after June 30, 2011.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.39.7"></a><var>39.7</var>    Sec. 4. Minnesota Statutes 2010, section 273.13, subdivision 21b, is amended to read:<br/>
<a id="pl.39.8"></a><var>39.8</var>    Subd. 21b. <b>Tax capacity.</b> (a) Gross tax capacity means the product of the <br/>
<a id="pl.39.9"></a><var>39.9</var>appropriate gross class rates in this section and market values.<br/>
<a id="pl.39.10"></a><var>39.10</var>(b) Net tax capacity means the product of the appropriate net class rates in this <br/>
<a id="pl.39.11"></a><var>39.11</var>section and market values, minus the property's tax capacity reduction determined under <br/>
<a id="pl.39.12"></a><var>39.12</var>section 273.1384, subdivision 1, if applicable.<br/>
<a id="pl.39.13"></a><var>39.13</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.39.14"></a><var>39.14</var>thereafter.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.39.15"></a><var>39.15</var>    Sec. 5. Minnesota Statutes 2010, section 273.13, subdivision 23, is amended to read:<br/>
<a id="pl.39.16"></a><var>39.16</var>    Subd. 23. <b>Class 2.</b> (a) An agricultural homestead consists of class 2a agricultural <br/>
<a id="pl.39.17"></a><var>39.17</var>land that is homesteaded, along with any class 2b rural vacant land that is contiguous to <br/>
<a id="pl.39.18"></a><var>39.18</var>the class 2a land under the same ownership. The market value of the house and garage <br/>
<a id="pl.39.19"></a><var>39.19</var>and immediately surrounding one acre of land has the same class rates as class 1a or 1b <br/>
<a id="pl.39.20"></a><var>39.20</var>property under subdivision 22. The value of the remaining land including improvements <br/>
<a id="pl.39.21"></a><var>39.21</var>up to the first tier valuation limit of agricultural homestead property has a net class rate <br/>
<a id="pl.39.22"></a><var>39.22</var>of 0.5 percent of market value. The remaining property over the first tier has a class rate <br/>
<a id="pl.39.23"></a><var>39.23</var>of one percent of market value. For purposes of this subdivision, the "first tier valuation <br/>
<a id="pl.39.24"></a><var>39.24</var>limit of agricultural homestead property" and "first tier" means the limit certified under <br/>
<a id="pl.39.25"></a><var>39.25</var>section 
         <statute_ref>273.11</statute_ref>, subdivision 23.<br/>
<a id="pl.39.26"></a><var>39.26</var>    (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that <br/>
<a id="pl.39.27"></a><var>39.27</var>are agricultural land and buildings. Class 2a property has a net class rate of one percent of <br/>
<a id="pl.39.28"></a><var>39.28</var>market value, unless it is part of an agricultural homestead under paragraph (a). Class <br/>
<a id="pl.39.29"></a><var>39.29</var>2a property must also include any property that would otherwise be classified as 2b, <br/>
<a id="pl.39.30"></a><var>39.30</var>but is interspersed with class 2a property, including but not limited to sloughs, wooded <br/>
<a id="pl.39.31"></a><var>39.31</var>wind shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback <br/>
<a id="pl.39.32"></a><var>39.32</var>requirement, and other similar land that is impractical for the assessor to value separately <br/>
<a id="pl.40.1"></a><var>40.1</var>from the rest of the property or that is unlikely to be able to be sold separately from <br/>
<a id="pl.40.2"></a><var>40.2</var>the rest of the property.<br/>
<a id="pl.40.3"></a><var>40.3</var>    An assessor may classify the part of a parcel described in this subdivision that is used <br/>
<a id="pl.40.4"></a><var>40.4</var>for agricultural purposes as class 2a and the remainder in the class appropriate to its use.<br/>
<a id="pl.40.5"></a><var>40.5</var>    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof, <br/>
<a id="pl.40.6"></a><var>40.6</var>that are unplatted real estate, rural in character and not used for agricultural purposes, <br/>
<a id="pl.40.7"></a><var>40.7</var>including land used for growing trees for timber, lumber, and wood and wood products, <br/>
<a id="pl.40.8"></a><var>40.8</var>that is not improved with a structure. The presence of a minor, ancillary nonresidential <br/>
<a id="pl.40.9"></a><var>40.9</var>structure as defined by the commissioner of revenue does not disqualify the property from <br/>
<a id="pl.40.10"></a><var>40.10</var>classification under this paragraph. Any parcel of 20 acres or more improved with a <br/>
<a id="pl.40.11"></a><var>40.11</var>structure that is not a minor, ancillary nonresidential structure must be split-classified, and <br/>
<a id="pl.40.12"></a><var>40.12</var>ten acres must be assigned to the split parcel containing the structure. Class 2b property <br/>
<a id="pl.40.13"></a><var>40.13</var>has a net class rate of one percent of market value unless it is part of an agricultural <br/>
<a id="pl.40.14"></a><var>40.14</var>homestead under paragraph (a), or qualifies as class 2c under paragraph (d).<br/>
<a id="pl.40.15"></a><var>40.15</var>    (d) Class 2c managed forest land consists of no less than 20 and no more than <br/>
<a id="pl.40.16"></a><var>40.16</var>1,920 acres statewide per taxpayer that is being managed under a forest management <br/>
<a id="pl.40.17"></a><var>40.17</var>plan that meets the requirements of chapter 290C, but is not enrolled in the sustainable <br/>
<a id="pl.40.18"></a><var>40.18</var>forest resource management incentive program. It has a class rate of .65 percent, <br/>
<a id="pl.40.19"></a><var>40.19</var>provided that the owner of the property must apply to the assessor in order for the <br/>
<a id="pl.40.20"></a><var>40.20</var>property to initially qualify for the reduced rate and provide the information required <br/>
<a id="pl.40.21"></a><var>40.21</var>by the assessor to verify that the property qualifies for the reduced rate. If the assessor <br/>
<a id="pl.40.22"></a><var>40.22</var>receives the application and information before May 1 in an assessment year, the property <br/>
<a id="pl.40.23"></a><var>40.23</var>qualifies beginning with that assessment year. If the assessor receives the application <br/>
<a id="pl.40.24"></a><var>40.24</var>and information after April 30 in an assessment year, the property may not qualify until <br/>
<a id="pl.40.25"></a><var>40.25</var>the next assessment year. The commissioner of natural resources must concur that the <br/>
<a id="pl.40.26"></a><var>40.26</var>land is qualified. The commissioner of natural resources shall annually provide county <br/>
<a id="pl.40.27"></a><var>40.27</var>assessors verification information on a timely basis. The presence of a minor, ancillary <br/>
<a id="pl.40.28"></a><var>40.28</var>nonresidential structure as defined by the commissioner of revenue does not disqualify <br/>
<a id="pl.40.29"></a><var>40.29</var>the property from classification under this paragraph. For purposes of this paragraph, <br/>
<a id="pl.40.30"></a><var>40.30</var>a "forest management plan" means a written document providing a framework for <br/>
<a id="pl.40.31"></a><var>40.31</var>site-specific healthy, productive, and sustainable forest resources. A forest management <br/>
<a id="pl.40.32"></a><var>40.32</var>plan must include at least the following: (i) forest management goals for the land; (ii) a <br/>
<a id="pl.40.33"></a><var>40.33</var>reliable field inventory of the individual forest cover types, their age, and density; (iii) a <br/>
<a id="pl.40.34"></a><var>40.34</var>description of the soil type and quality; (iv) an aerial photo and/or map of the vegetation <br/>
<a id="pl.40.35"></a><var>40.35</var>and other natural features of the land clearly indicating the boundaries of the land and of <br/>
<a id="pl.40.36"></a><var>40.36</var>the forest land; (v) the proposed future conditions of the land; (vi) prescriptions to meet <br/>
<a id="pl.41.1"></a><var>41.1</var>proposed future conditions of the land; (vii) a recommended timetable for implementing <br/>
<a id="pl.41.2"></a><var>41.2</var>the prescribed activities; and (viii) a legal description of the land encompassing the <br/>
<a id="pl.41.3"></a><var>41.3</var>parcels included in the plan. All management activities prescribed in a plan must be in <br/>
<a id="pl.41.4"></a><var>41.4</var>accordance with the recommended timber harvesting and forest management guidelines. <br/>
<a id="pl.41.5"></a><var>41.5</var>The commissioner of natural resources shall provide a framework for plan content and <br/>
<a id="pl.41.6"></a><var>41.6</var>updating and revising plans.<br/>
<a id="pl.41.7"></a><var>41.7</var>    (e) Agricultural land as used in this section means contiguous acreage of ten <br/>
<a id="pl.41.8"></a><var>41.8</var>acres or more, used during the preceding year for agricultural purposes. "Agricultural <br/>
<a id="pl.41.9"></a><var>41.9</var>purposes" as used in this section means the raising, cultivation, drying, or storage of <br/>
<a id="pl.41.10"></a><var>41.10</var>agricultural products for sale, or the storage of machinery or equipment used in support <br/>
<a id="pl.41.11"></a><var>41.11</var>of agricultural production by the same farm entity. For a property to be classified as <br/>
<a id="pl.41.12"></a><var>41.12</var>agricultural based only on the drying or storage of agricultural products, the products <br/>
<a id="pl.41.13"></a><var>41.13</var>being dried or stored must have been produced by the same farm entity as the entity <br/>
<a id="pl.41.14"></a><var>41.14</var>operating the drying or storage facility. "Agricultural purposes" also includes enrollment <br/>
<a id="pl.41.15"></a><var>41.15</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.41.16"></a><var>41.16</var>Conservation Reserve Program as contained in Public Law 99-198 or a similar state <br/>
<a id="pl.41.17"></a><var>41.17</var>or federal conservation program if the property was classified as agricultural (i) under <br/>
<a id="pl.41.18"></a><var>41.18</var>this subdivision for the assessment year 2002 or (ii) in the year prior to its enrollment. <br/>
<a id="pl.41.19"></a><var>41.19</var>Agricultural classification shall not be based upon the market value of any residential <br/>
<a id="pl.41.20"></a><var>41.20</var>structures on the parcel or contiguous parcels under the same ownership.<br/>
<a id="pl.41.21"></a><var>41.21</var>    (f) Real estate of less than ten acres, which is exclusively or intensively used for <br/>
<a id="pl.41.22"></a><var>41.22</var>raising or cultivating agricultural products, shall be considered as agricultural land. To <br/>
<a id="pl.41.23"></a><var>41.23</var>qualify under this paragraph, property that includes a residential structure must be used <br/>
<a id="pl.41.24"></a><var>41.24</var>intensively for one of the following purposes:<br/>
<a id="pl.41.25"></a><var>41.25</var>    (i) for drying or storage of grain or storage of machinery or equipment used to <br/>
<a id="pl.41.26"></a><var>41.26</var>support agricultural activities on other parcels of property operated by the same farming <br/>
<a id="pl.41.27"></a><var>41.27</var>entity;<br/>
<a id="pl.41.28"></a><var>41.28</var>    (ii) as a nursery, provided that only those acres used to produce nursery stock are <br/>
<a id="pl.41.29"></a><var>41.29</var>considered agricultural land;<br/>
<a id="pl.41.30"></a><var>41.30</var>    (iii) for livestock or poultry confinement, provided that land that is used only for <br/>
<a id="pl.41.31"></a><var>41.31</var>pasturing and grazing does not qualify; or<br/>
<a id="pl.41.32"></a><var>41.32</var>    (iv) for market farming; for purposes of this paragraph, "market farming" means the <br/>
<a id="pl.41.33"></a><var>41.33</var>cultivation of one or more fruits or vegetables or production of animal or other agricultural <br/>
<a id="pl.41.34"></a><var>41.34</var>products for sale to local markets by the farmer or an organization with which the farmer <br/>
<a id="pl.41.35"></a><var>41.35</var>is affiliated.<br/>
<a id="pl.42.1"></a><var>42.1</var>    (g) Land shall be classified as agricultural even if all or a portion of the agricultural <br/>
<a id="pl.42.2"></a><var>42.2</var>use of that property is the leasing to, or use by another person for agricultural purposes.<br/>
<a id="pl.42.3"></a><var>42.3</var>    Classification under this subdivision is not determinative for qualifying under <br/>
<a id="pl.42.4"></a><var>42.4</var>section 
         <statute_ref>273.111</statute_ref>.<br/>
<a id="pl.42.5"></a><var>42.5</var>    (h) The property classification under this section supersedes, for property tax <br/>
<a id="pl.42.6"></a><var>42.6</var>purposes only, any locally administered agricultural policies or land use restrictions that <br/>
<a id="pl.42.7"></a><var>42.7</var>define minimum or maximum farm acreage.<br/>
<a id="pl.42.8"></a><var>42.8</var>    (i) The term "agricultural products" as used in this subdivision includes production <br/>
<a id="pl.42.9"></a><var>42.9</var>for sale of:<br/>
<a id="pl.42.10"></a><var>42.10</var>    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing <br/>
<a id="pl.42.11"></a><var>42.11</var>animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, <br/>
<a id="pl.42.12"></a><var>42.12</var>bees, and apiary products by the owner;<br/>
<a id="pl.42.13"></a><var>42.13</var>    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned <br/>
<a id="pl.42.14"></a><var>42.14</var>for agricultural use;<br/>
<a id="pl.42.15"></a><var>42.15</var>    (3) the commercial boarding of horses, which may include related horse training and <br/>
<a id="pl.42.16"></a><var>42.16</var>riding instruction, if the boarding is done on property that is also used for raising pasture <br/>
<a id="pl.42.17"></a><var>42.17</var>to graze horses or raising or cultivating other agricultural products as defined in clause (1);<br/>
<a id="pl.42.18"></a><var>42.18</var>    (4) property which is owned and operated by nonprofit organizations used for <br/>
<a id="pl.42.19"></a><var>42.19</var>equestrian activities, excluding racing;<br/>
<a id="pl.42.20"></a><var>42.20</var>    (5) game birds and waterfowl bred and raised for use on a shooting preserve licensed <br/>
<a id="pl.42.21"></a><var>42.21</var>under section 
         <statute_ref>97A.115</statute_ref>;<br/>
<a id="pl.42.22"></a><var>42.22</var>    (6) insects primarily bred to be used as food for animals;<br/>
<a id="pl.42.23"></a><var>42.23</var>    (7) trees, grown for sale as a crop, including short rotation woody crops, and not <br/>
<a id="pl.42.24"></a><var>42.24</var>sold for timber, lumber, wood, or wood products; and<br/>
<a id="pl.42.25"></a><var>42.25</var>    (8) maple syrup taken from trees grown by a person licensed by the Minnesota <br/>
<a id="pl.42.26"></a><var>42.26</var>Department of Agriculture under chapter 28A as a food processor.<br/>
<a id="pl.42.27"></a><var>42.27</var>    (j) If a parcel used for agricultural purposes is also used for commercial or industrial <br/>
<a id="pl.42.28"></a><var>42.28</var>purposes, including but not limited to:<br/>
<a id="pl.42.29"></a><var>42.29</var>    (1) wholesale and retail sales;<br/>
<a id="pl.42.30"></a><var>42.30</var>    (2) processing of raw agricultural products or other goods;<br/>
<a id="pl.42.31"></a><var>42.31</var>    (3) warehousing or storage of processed goods; and<br/>
<a id="pl.42.32"></a><var>42.32</var>    (4) office facilities for the support of the activities enumerated in clauses (1), (2), <br/>
<a id="pl.42.33"></a><var>42.33</var>and (3),<br/>
<a id="pl.42.34"></a><var>42.34</var>the assessor shall classify the part of the parcel used for agricultural purposes as class <br/>
<a id="pl.42.35"></a><var>42.35</var>1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its <br/>
<a id="pl.42.36"></a><var>42.36</var>use. The grading, sorting, and packaging of raw agricultural products for first sale is <br/>
<a id="pl.43.1"></a><var>43.1</var>considered an agricultural purpose. A greenhouse or other building where horticultural <br/>
<a id="pl.43.2"></a><var>43.2</var>or nursery products are grown that is also used for the conduct of retail sales must be <br/>
<a id="pl.43.3"></a><var>43.3</var>classified as agricultural if it is primarily used for the growing of horticultural or nursery <br/>
<a id="pl.43.4"></a><var>43.4</var>products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of <br/>
<a id="pl.43.5"></a><var>43.5</var>those products. Use of a greenhouse or building only for the display of already grown <br/>
<a id="pl.43.6"></a><var>43.6</var>horticultural or nursery products does not qualify as an agricultural purpose.<br/>
<a id="pl.43.7"></a><var>43.7</var>    (k) The assessor shall determine and list separately on the records the market value <br/>
<a id="pl.43.8"></a><var>43.8</var>of the homestead dwelling and the one acre of land on which that dwelling is located. If <br/>
<a id="pl.43.9"></a><var>43.9</var>any farm buildings or structures are located on this homesteaded acre of land, their market <br/>
<a id="pl.43.10"></a><var>43.10</var>value shall not be included in this separate determination.<br/>
<a id="pl.43.11"></a><var>43.11</var>    (l) Class 2d airport landing area consists of a landing area or public access area of <br/>
<a id="pl.43.12"></a><var>43.12</var>a privately owned public use airport. It has a class rate of one percent of market value. <br/>
<a id="pl.43.13"></a><var>43.13</var>To qualify for classification under this paragraph, a privately owned public use airport <br/>
<a id="pl.43.14"></a><var>43.14</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.43.15"></a><var>43.15</var>"landing area" means that part of a privately owned public use airport properly cleared, <br/>
<a id="pl.43.16"></a><var>43.16</var>regularly maintained, and made available to the public for use by aircraft and includes <br/>
<a id="pl.43.17"></a><var>43.17</var>runways, taxiways, aprons, and sites upon which are situated landing or navigational aids. <br/>
<a id="pl.43.18"></a><var>43.18</var>A landing area also includes land underlying both the primary surface and the approach <br/>
<a id="pl.43.19"></a><var>43.19</var>surfaces that comply with all of the following:<br/>
<a id="pl.43.20"></a><var>43.20</var>    (i) the land is properly cleared and regularly maintained for the primary purposes of <br/>
<a id="pl.43.21"></a><var>43.21</var>the landing, taking off, and taxiing of aircraft; but that portion of the land that contains <br/>
<a id="pl.43.22"></a><var>43.22</var>facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;<br/>
<a id="pl.43.23"></a><var>43.23</var>    (ii) the land is part of the airport property; and<br/>
<a id="pl.43.24"></a><var>43.24</var>    (iii) the land is not used for commercial or residential purposes.<br/>
<a id="pl.43.25"></a><var>43.25</var>The land contained in a landing area under this paragraph must be described and certified <br/>
<a id="pl.43.26"></a><var>43.26</var>by the commissioner of transportation. The certification is effective until it is modified, <br/>
<a id="pl.43.27"></a><var>43.27</var>or until the airport or landing area no longer meets the requirements of this paragraph. <br/>
<a id="pl.43.28"></a><var>43.28</var>For purposes of this paragraph, "public access area" means property used as an aircraft <br/>
<a id="pl.43.29"></a><var>43.29</var>parking ramp, apron, or storage hangar, or an arrival and departure building in connection <br/>
<a id="pl.43.30"></a><var>43.30</var>with the airport.<br/>
<a id="pl.43.31"></a><var>43.31</var>    (m) Class 2e consists of land with a commercial aggregate deposit that is not actively <br/>
<a id="pl.43.32"></a><var>43.32</var>being mined and is not otherwise classified as class 2a or 2b, provided that the land is not <br/>
<a id="pl.43.33"></a><var>43.33</var>located in a county that has elected to opt-out of the aggregate preservation program as <br/>
<a id="pl.43.34"></a><var>43.34</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.43.35"></a><var>43.35</var>value. To qualify for classification under this paragraph, the property must be at least <br/>
<a id="pl.44.1"></a><var>44.1</var>ten contiguous acres in size and the owner of the property must record with the county <br/>
<a id="pl.44.2"></a><var>44.2</var>recorder of the county in which the property is located an affidavit containing:<br/>
<a id="pl.44.3"></a><var>44.3</var>    (1) a legal description of the property;<br/>
<a id="pl.44.4"></a><var>44.4</var>    (2) a disclosure that the property contains a commercial aggregate deposit that is not <br/>
<a id="pl.44.5"></a><var>44.5</var>actively being mined but is present on the entire parcel enrolled;<br/>
<a id="pl.44.6"></a><var>44.6</var>    (3) documentation that the conditional use under the county or local zoning <br/>
<a id="pl.44.7"></a><var>44.7</var>ordinance of this property is for mining; and<br/>
<a id="pl.44.8"></a><var>44.8</var>    (4) documentation that a permit has been issued by the local unit of government <br/>
<a id="pl.44.9"></a><var>44.9</var>or the mining activity is allowed under local ordinance. The disclosure must include a <br/>
<a id="pl.44.10"></a><var>44.10</var>statement from a registered professional geologist, engineer, or soil scientist delineating <br/>
<a id="pl.44.11"></a><var>44.11</var>the deposit and certifying that it is a commercial aggregate deposit.<br/>
<a id="pl.44.12"></a><var>44.12</var>    For purposes of this section and section 
         <statute_ref>273.1115</statute_ref>, "commercial aggregate deposit" <br/>
<a id="pl.44.13"></a><var>44.13</var>means a deposit that will yield crushed stone or sand and gravel that is suitable for use <br/>
<a id="pl.44.14"></a><var>44.14</var>as a construction aggregate; and "actively mined" means the removal of top soil and <br/>
<a id="pl.44.15"></a><var>44.15</var>overburden in preparation for excavation or excavation of a commercial deposit.<br/>
<a id="pl.44.16"></a><var>44.16</var>    (n) When any portion of the property under this subdivision or subdivision 22 begins <br/>
<a id="pl.44.17"></a><var>44.17</var>to be actively mined, the owner must file a supplemental affidavit within 60 days from <br/>
<a id="pl.44.18"></a><var>44.18</var>the day any aggregate is removed stating the number of acres of the property that is <br/>
<a id="pl.44.19"></a><var>44.19</var>actively being mined. The acres actively being mined must be (1) valued and classified <br/>
<a id="pl.44.20"></a><var>44.20</var>under subdivision 24 in the next subsequent assessment year, and (2) removed from the <br/>
<a id="pl.44.21"></a><var>44.21</var>aggregate resource preservation property tax program under section 
         <statute_ref>273.1115</statute_ref>, if the <br/>
<a id="pl.44.22"></a><var>44.22</var>land was enrolled in that program. Copies of the original affidavit and all supplemental <br/>
<a id="pl.44.23"></a><var>44.23</var>affidavits must be filed with the county assessor, the local zoning administrator, and the <br/>
<a id="pl.44.24"></a><var>44.24</var>Department of Natural Resources, Division of Land and Minerals. A supplemental <br/>
<a id="pl.44.25"></a><var>44.25</var>affidavit must be filed each time a subsequent portion of the property is actively mined, <br/>
<a id="pl.44.26"></a><var>44.26</var>provided that the minimum acreage change is five acres, even if the actual mining activity <br/>
<a id="pl.44.27"></a><var>44.27</var>constitutes less than five acres.<br/>
<a id="pl.44.28"></a><var>44.28</var>(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are <br/>
<a id="pl.44.29"></a><var>44.29</var>not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions <br/>
<a id="pl.44.30"></a><var>44.30</var>in section 
         <statute_ref>14.386</statute_ref> concerning exempt rules do not apply.<br/>
<a id="pl.44.31"></a><var>44.31</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in 2011, payable <br/>
<a id="pl.44.32"></a><var>44.32</var>in 2012, and thereafter.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.44.33"></a><var>44.33</var>    Sec. 6. Minnesota Statutes 2010, section 273.1384, subdivision 1, is amended to read:<br/>
<a id="pl.44.34"></a><var>44.34</var>    Subdivision 1. <b>Residential homestead market value </b><b>credit</b><b> tax capacity </b><br/>
<a id="pl.44.35"></a><var>44.35</var><b>reduction</b><b>.</b> Each county auditor shall determine a homestead credit tax capacity reduction <br/>
<a id="pl.45.1"></a><var>45.1</var>for each class 1a, 1b, and 2a homestead property within the county equal to 0.4 percent of <br/>
<a id="pl.45.2"></a><var>45.2</var>the first $76,000 of market value of the property minus .09 percent of the market value <br/>
<a id="pl.45.3"></a><var>45.3</var>in excess of $76,000. The credit tax capacity reduction amount may not be less than <br/>
<a id="pl.45.4"></a><var>45.4</var>zero. In the case of an agricultural or resort homestead, only the market value of the <br/>
<a id="pl.45.5"></a><var>45.5</var>house, garage, and immediately surrounding one acre of land is eligible in determining <br/>
<a id="pl.45.6"></a><var>45.6</var>the property's homestead credit tax capacity reduction. In the case of a property that is <br/>
<a id="pl.45.7"></a><var>45.7</var>classified as part homestead and part nonhomestead, (i) the credit tax capacity reduction <br/>
<a id="pl.45.8"></a><var>45.8</var>shall apply only to the homestead portion of the property, but (ii) if a portion of a property <br/>
<a id="pl.45.9"></a><var>45.9</var>is classified as nonhomestead solely because not all the owners occupy the property, not <br/>
<a id="pl.45.10"></a><var>45.10</var>all the owners have qualifying relatives occupying the property, or solely because not all <br/>
<a id="pl.45.11"></a><var>45.11</var>the spouses of owners occupy the property, the credit tax capacity reduction amount shall <br/>
<a id="pl.45.12"></a><var>45.12</var>be initially computed as if that nonhomestead portion were also in the homestead class and <br/>
<a id="pl.45.13"></a><var>45.13</var>then prorated to the owner-occupant's percentage of ownership. For the purpose of this <br/>
<a id="pl.45.14"></a><var>45.14</var>section, when an owner-occupant's spouse does not occupy the property, the percentage of <br/>
<a id="pl.45.15"></a><var>45.15</var>ownership for the owner-occupant spouse is one-half of the couple's ownership percentage.<br/>
<a id="pl.45.16"></a><var>45.16</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.45.17"></a><var>45.17</var>thereafter.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.45.18"></a><var>45.18</var>    Sec. 7. Minnesota Statutes 2010, section 273.1384, subdivision 3, is amended to read:<br/>
<a id="pl.45.19"></a><var>45.19</var>    Subd. 3. <b>Credit reimbursements.</b> The county auditor shall determine the tax <br/>
<a id="pl.45.20"></a><var>45.20</var>reductions allowed under this section subdivision 2 within the county for each taxes <br/>
<a id="pl.45.21"></a><var>45.21</var>payable year and shall certify that amount to the commissioner of revenue as a part of the <br/>
<a id="pl.45.22"></a><var>45.22</var>abstracts of tax lists submitted by the county auditors under section 
         <statute_ref>275.29</statute_ref>. Any prior <br/>
<a id="pl.45.23"></a><var>45.23</var>year adjustments shall also be certified on the abstracts of tax lists. The commissioner <br/>
<a id="pl.45.24"></a><var>45.24</var>shall review the certifications for accuracy, and may make such changes as are deemed <br/>
<a id="pl.45.25"></a><var>45.25</var>necessary, or return the certification to the county auditor for correction. The credits <br/>
<a id="pl.45.26"></a><var>45.26</var>credit under this section must be used to proportionately reduce the net tax capacity-based <br/>
<a id="pl.45.27"></a><var>45.27</var>property tax payable to each local taxing jurisdiction as provided in section 
         <statute_ref>273.1393</statute_ref>.<br/>
<a id="pl.45.28"></a><var>45.28</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.45.29"></a><var>45.29</var>thereafter.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.45.30"></a><var>45.30</var>    Sec. 8. Minnesota Statutes 2010, section 273.1384, subdivision 4, is amended to read:<br/>
<a id="pl.45.31"></a><var>45.31</var>    Subd. 4. <b>Payment.</b> (a) The commissioner of revenue shall reimburse each local <br/>
<a id="pl.45.32"></a><var>45.32</var>taxing jurisdiction, other than school districts, for the tax reductions granted under this <br/>
<a id="pl.45.33"></a><var>45.33</var>section subdivision 2 in two equal installments on October 31 and December 26 of the <br/>
<a id="pl.46.1"></a><var>46.1</var>taxes payable year for which the reductions are granted, including in each payment <br/>
<a id="pl.46.2"></a><var>46.2</var>the prior year adjustments certified on the abstracts for that taxes payable year. The <br/>
<a id="pl.46.3"></a><var>46.3</var>reimbursements related to tax increments shall be issued in one installment each year on <br/>
<a id="pl.46.4"></a><var>46.4</var>December 26.<br/>
<a id="pl.46.5"></a><var>46.5</var>(b) The commissioner of revenue shall certify the total of the tax reductions granted <br/>
<a id="pl.46.6"></a><var>46.6</var>under this section subdivision 2 for each taxes payable year within each school district to <br/>
<a id="pl.46.7"></a><var>46.7</var>the commissioner of the Department of Education and the commissioner of education shall <br/>
<a id="pl.46.8"></a><var>46.8</var>pay the reimbursement amounts to each school district as provided in section 
         <statute_ref>273.1392</statute_ref>.<br/>
<a id="pl.46.9"></a><var>46.9</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.46.10"></a><var>46.10</var>thereafter.<br/>
<br/>
<a id="bill.3.9.0"></a><a id="pl.46.11"></a><var>46.11</var>    Sec. 9. Minnesota Statutes 2010, section 273.1384, is amended by adding a subdivision <br/>
<a id="pl.46.12"></a><var>46.12</var>to read:<br/>
<a id="pl.46.13"></a><var>46.13</var>    Subd. 7. <b>Credit reductions and limitation; counties and cities.</b> In 2011, the <br/>
<a id="pl.46.14"></a><var>46.14</var>market value credit reimbursement payment to each county and city authorized under <br/>
<a id="pl.46.15"></a><var>46.15</var>subdivision 4 may not exceed the reimbursement payment received by the county or city <br/>
<a id="pl.46.16"></a><var>46.16</var>for taxes payable in 2010. <br/>
<a id="pl.46.17"></a><var>46.17</var><b>EFFECTIVE DATE.</b>This section is effective for credit reimbursements in 2011.<br/>
<br/>
<a id="bill.3.10.0"></a><a id="pl.46.18"></a><var>46.18</var>    Sec. 10. Minnesota Statutes 2010, section 273.1393, is amended to read:<br/>
<a id="pl.46.19"></a><var>46.19</var><b>273.1393 COMPUTATION OF NET PROPERTY TAXES.</b><br/>
<a id="pl.46.20"></a><var>46.20</var>    Notwithstanding any other provisions to the contrary, "net" property taxes are <br/>
<a id="pl.46.21"></a><var>46.21</var>determined by subtracting the credits in the order listed from the gross tax:<br/>
<a id="pl.46.22"></a><var>46.22</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.46.23"></a><var>46.23</var>    (2) powerline credit as provided in section 
         <statute_ref>273.42</statute_ref>;<br/>
<a id="pl.46.24"></a><var>46.24</var>    (3) agricultural preserves credit as provided in section 
         <statute_ref>473H.10</statute_ref>;<br/>
<a id="pl.46.25"></a><var>46.25</var>    (4) enterprise zone credit as provided in section 
         <statute_ref>469.171</statute_ref>;<br/>
<a id="pl.46.26"></a><var>46.26</var>    (5) disparity reduction credit;<br/>
<a id="pl.46.27"></a><var>46.27</var>    (6) conservation tax credit as provided in section 
         <statute_ref>273.119</statute_ref>;<br/>
<a id="pl.46.28"></a><var>46.28</var>    (7) homestead and agricultural credits credit as provided in section 
         <statute_ref>273.1384</statute_ref>;<br/>
<a id="pl.46.29"></a><var>46.29</var>    (8) taconite homestead credit as provided in section 
         <statute_ref>273.135</statute_ref>;<br/>
<a id="pl.46.30"></a><var>46.30</var>    (9) supplemental homestead credit as provided in section 
         <statute_ref>273.1391; and<br/>
</statute_ref><a id="pl.46.31"></a><var>46.31</var>    (10) the bovine tuberculosis zone credit, as provided in section 
         <statute_ref>273.113</statute_ref>.<br/>
<a id="pl.46.32"></a><var>46.32</var>    The combination of all property tax credits must not exceed the gross tax amount.<br/>
<a id="pl.47.1"></a><var>47.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.47.2"></a><var>47.2</var>thereafter.<br/>
<br/>
<a id="bill.3.11.0"></a><a id="pl.47.3"></a><var>47.3</var>    Sec. 11. Minnesota Statutes 2010, section 273.1398, subdivision 3, is amended to read:<br/>
<a id="pl.47.4"></a><var>47.4</var>    Subd. 3. <b>Disparity reduction aid.</b>  The amount of disparity aid certified in 2012 <br/>
<a id="pl.47.5"></a><var>47.5</var>for each taxing school district within each unique taxing jurisdiction for taxes payable in <br/>
<a id="pl.47.6"></a><var>47.6</var>the prior year shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using <br/>
<a id="pl.47.7"></a><var>47.7</var>the class rates for taxes payable in the year for which aid is being computed, to (2) its tax <br/>
<a id="pl.47.8"></a><var>47.8</var>capacity using the class rates for taxes payable in the year prior to that for which aid is <br/>
<a id="pl.47.9"></a><var>47.9</var>being computed, both based upon market values for taxes payable in the year prior to <br/>
<a id="pl.47.10"></a><var>47.10</var>that for which aid is being computed. If the commissioner determines that insufficient <br/>
<a id="pl.47.11"></a><var>47.11</var>information is available to reasonably and timely calculate the numerator in this ratio <br/>
<a id="pl.47.12"></a><var>47.12</var>for the first taxes payable year that a class rate change or new class rate is effective, <br/>
<a id="pl.47.13"></a><var>47.13</var>the commissioner shall omit the effects of that class rate change or new class rate when <br/>
<a id="pl.47.14"></a><var>47.14</var>calculating this ratio for aid payable in that taxes payable year. For aid payable in the <br/>
<a id="pl.47.15"></a><var>47.15</var>year following a year for which such omission was made, the commissioner shall use in <br/>
<a id="pl.47.16"></a><var>47.16</var>the denominator for the class that was changed or created, the tax capacity for taxes <br/>
<a id="pl.47.17"></a><var>47.17</var>payable two years prior to that in which the aid is payable, based on market values for <br/>
<a id="pl.47.18"></a><var>47.18</var>taxes payable in the year prior to that for which aid is being computed is equal to the <br/>
<a id="pl.47.19"></a><var>47.19</var>amount certified for taxes payable in 2011.<br/>
<a id="pl.47.20"></a><var>47.20</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.47.21"></a><var>47.21</var>thereafter.<br/>
<br/>
<a id="bill.3.12.0"></a><a id="pl.47.22"></a><var>47.22</var>    Sec. 12. Minnesota Statutes 2010, section 273.1398, subdivision 4, is amended to read:<br/>
<a id="pl.47.23"></a><var>47.23</var>    Subd. 4. <b>Disparity reduction credit.</b> (a) Beginning with taxes payable in 1989, <br/>
<a id="pl.47.24"></a><var>47.24</var>class 4a, class 3a, and class 3b property qualifies for a disparity reduction credit if: (1) <br/>
<a id="pl.47.25"></a><var>47.25</var>the property is located in a border city that has an enterprise zone designated pursuant <br/>
<a id="pl.47.26"></a><var>47.26</var>to section 
         <statute_ref>469.168, subdivision 4</statute_ref>; (2) the property is located in a city with a population <br/>
<a id="pl.47.27"></a><var>47.27</var>greater than 2,500 and less than 35,000 according to the 1980 decennial census; (3) the <br/>
<a id="pl.47.28"></a><var>47.28</var>city is adjacent to a city in another state or immediately adjacent to a city adjacent to a city <br/>
<a id="pl.47.29"></a><var>47.29</var>in another state; and (4) the adjacent city in the other state has a population of greater than <br/>
<a id="pl.47.30"></a><var>47.30</var>5,000 and less than 75,000 according to the 1980 decennial census.<br/>
<a id="pl.47.31"></a><var>47.31</var>    (b) For taxes payable in 2012, the credit is 75 percent of an amount sufficient to <br/>
<a id="pl.47.32"></a><var>47.32</var>reduce (i) the taxes levied on class 4a property to 2.3 percent of the property's market <br/>
<a id="pl.47.33"></a><var>47.33</var>value and (ii) the tax on class 3a and class 3b property to 2.3 percent of market value.<br/>
<a id="pl.48.1"></a><var>48.1</var>(c) For taxes payable in 2013, the credit is 50 percent of an amount sufficient to <br/>
<a id="pl.48.2"></a><var>48.2</var>reduce (i) the taxes levied on class 4a property to 2.3 percent of the property's market <br/>
<a id="pl.48.3"></a><var>48.3</var>value and (ii) the tax on class 3a and class 3b property to 2.3 percent of market value.<br/>
<a id="pl.48.4"></a><var>48.4</var>(d) For taxes payable in 2014, the credit is 25 percent of an amount sufficient to <br/>
<a id="pl.48.5"></a><var>48.5</var>reduce (i) the taxes levied on class 4a property to 2.3 percent of the property's market <br/>
<a id="pl.48.6"></a><var>48.6</var>value and (ii) the tax on class 3a and class 3b property to 2.3 percent of market value.<br/>
<a id="pl.48.7"></a><var>48.7</var>    (c) (e) The county auditor shall annually certify the costs of the credits to the <br/>
<a id="pl.48.8"></a><var>48.8</var>Department of Revenue. The department shall reimburse local governments for the <br/>
<a id="pl.48.9"></a><var>48.9</var>property taxes forgone as the result of the credits in proportion to their total levies.<br/>
<a id="pl.48.10"></a><var>48.10</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.48.11"></a><var>48.11</var>thereafter.<br/>
<br/>
<a id="bill.3.13.0"></a><a id="pl.48.12"></a><var>48.12</var>    Sec. 13. Minnesota Statutes 2010, section 275.08, subdivision 1a, is amended to read:<br/>
<a id="pl.48.13"></a><var>48.13</var>    Subd. 1a. <b>Computation of tax capacity.</b> For taxes payable in 1989, the county <br/>
<a id="pl.48.14"></a><var>48.14</var>auditor shall compute the gross tax capacity for each parcel according to the class rates <br/>
<a id="pl.48.15"></a><var>48.15</var>specified in section 
<statute_ref>273.13</statute_ref>. The gross tax capacity will be the appropriate class rate <br/>
<a id="pl.48.16"></a><var>48.16</var>multiplied by the parcel's market value. For taxes payable in 1990 and subsequent years, <br/>
<a id="pl.48.17"></a><var>48.17</var>The county auditor shall compute the net tax capacity for each parcel according to the <br/>
<a id="pl.48.18"></a><var>48.18</var>class rates specified in as defined under section 
         <statute_ref>273.13</statute_ref>, subdivision 21b. The net tax <br/>
<a id="pl.48.19"></a><var>48.19</var>capacity will be the appropriate class rate multiplied by the parcel's market value. <br/>
<a id="pl.48.20"></a><var>48.20</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.48.21"></a><var>48.21</var>thereafter.<br/>
<br/>
<a id="bill.3.14.0"></a><a id="pl.48.22"></a><var>48.22</var>    Sec. 14. <b>[275.761] MAINTENANCE OF EFFORT REQUIREMENTS </b><br/>
<a id="pl.48.23"></a><var>48.23</var><b>REDUCED.</b><br/>
<a id="pl.48.24"></a><var>48.24</var>(a) Notwithstanding any law to the contrary and except as provided in paragraphs (b) <br/>
<a id="pl.48.25"></a><var>48.25</var>and (c), the amounts required to be expended under the maintenance of effort requirements <br/>
<a id="pl.48.26"></a><var>48.26</var>for counties under sections 134.34, 245.4835, 256F.10, and 256F.13, are reduced to 90 <br/>
<a id="pl.48.27"></a><var>48.27</var>percent of the amounts required for 2011.<br/>
<a id="pl.48.28"></a><var>48.28</var>(b) This section does not permit a county to reduce compliance with maintenance of <br/>
<a id="pl.48.29"></a><var>48.29</var>effort requirements to the extent that the reduction would:<br/>
<a id="pl.48.30"></a><var>48.30</var>(1) require the state to expend additional money or incur additional costs; or<br/>
<a id="pl.48.31"></a><var>48.31</var>(2) cause a reduction in the receipt by the state or the county of federal funds.<br/>
<a id="pl.48.32"></a><var>48.32</var>(c) The commissioner of management and budget may determine the maintenance <br/>
<a id="pl.48.33"></a><var>48.33</var>of effort requirements that are not permitted, in whole or in part, to be reduced under <br/>
<a id="pl.49.1"></a><var>49.1</var>paragraph (b). The commissioner shall publish these determinations on the department's <br/>
<a id="pl.49.2"></a><var>49.2</var>Web site and no county may reduce compliance with a maintenance of effort requirement <br/>
<a id="pl.49.3"></a><var>49.3</var>that the commissioner determines is not subject to reduction.<br/>
<a id="pl.49.4"></a><var>49.4</var>(d) Notwithstanding any law to the contrary, the amounts required to be expended <br/>
<a id="pl.49.5"></a><var>49.5</var>under the maintenance of effort requirements for all statutory and home rule charter cities <br/>
<a id="pl.49.6"></a><var>49.6</var>under section 134.34 are reduced to 90 percent of the amounts required for 2011.<br/>
<a id="pl.49.7"></a><var>49.7</var><b>EFFECTIVE DATE.</b>This section is effective for maintenance of effort <br/>
<a id="pl.49.8"></a><var>49.8</var>requirements in 2012 and 2013.<br/>
<br/>
<a id="bill.3.15.0"></a><a id="pl.49.9"></a><var>49.9</var>    Sec. 15. Minnesota Statutes 2010, section 276.04, subdivision 2, is amended to read:<br/>
<a id="pl.49.10"></a><var>49.10</var>    Subd. 2. <b>Contents of tax statements.</b> (a) The treasurer shall provide for the <br/>
<a id="pl.49.11"></a><var>49.11</var>printing of the tax statements. The commissioner of revenue shall prescribe the form of <br/>
<a id="pl.49.12"></a><var>49.12</var>the property tax statement and its contents. The tax statement must not state or imply <br/>
<a id="pl.49.13"></a><var>49.13</var>that property tax credits are paid by the state of Minnesota. The statement must contain <br/>
<a id="pl.49.14"></a><var>49.14</var>a tabulated statement of the dollar amount due to each taxing authority and the amount <br/>
<a id="pl.49.15"></a><var>49.15</var>of the state tax from the parcel of real property for which a particular tax statement is <br/>
<a id="pl.49.16"></a><var>49.16</var>prepared. The dollar amounts attributable to the county, the state tax, the voter approved <br/>
<a id="pl.49.17"></a><var>49.17</var>school tax, the other local school tax, the township or municipality, and the total of <br/>
<a id="pl.49.18"></a><var>49.18</var>the metropolitan special taxing districts as defined in section 
         <statute_ref>275.065, subdivision 3</statute_ref>, <br/>
<a id="pl.49.19"></a><var>49.19</var>paragraph (i), must be separately stated. The amounts due all other special taxing districts, <br/>
<a id="pl.49.20"></a><var>49.20</var>if any, may be aggregated except that any levies made by the regional rail authorities in the <br/>
<a id="pl.49.21"></a><var>49.21</var>county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter <br/>
<a id="pl.49.22"></a><var>49.22</var>398A shall be listed on a separate line directly under the appropriate county's levy. If the <br/>
<a id="pl.49.23"></a><var>49.23</var>county levy under this paragraph includes an amount for a lake improvement district as <br/>
<a id="pl.49.24"></a><var>49.24</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.49.25"></a><var>49.25</var>must be separately stated from the remaining county levy amount. In the case of Ramsey <br/>
<a id="pl.49.26"></a><var>49.26</var>County, if the county levy under this paragraph includes an amount for public library <br/>
<a id="pl.49.27"></a><var>49.27</var>service under section 
         <statute_ref>134.07</statute_ref>, the amount attributable for that purpose may be separated <br/>
<a id="pl.49.28"></a><var>49.28</var>from the remaining county levy amount. The amount of the tax on homesteads qualifying <br/>
<a id="pl.49.29"></a><var>49.29</var>under the senior citizens' property tax deferral program under chapter 290B is the total <br/>
<a id="pl.49.30"></a><var>49.30</var>amount of property tax before subtraction of the deferred property tax amount. The <br/>
<a id="pl.49.31"></a><var>49.31</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.49.32"></a><var>49.32</var>must also be separately stated. The dollar amounts, including the dollar amount of any <br/>
<a id="pl.49.33"></a><var>49.33</var>special assessments, may be rounded to the nearest even whole dollar. For purposes of this <br/>
<a id="pl.49.34"></a><var>49.34</var>section whole odd-numbered dollars may be adjusted to the next higher even-numbered <br/>
<a id="pl.50.1"></a><var>50.1</var>dollar. The amount of market value excluded under section 
         <statute_ref>273.11, subdivision 16</statute_ref>, if any, <br/>
<a id="pl.50.2"></a><var>50.2</var>must also be listed on the tax statement.<br/>
<a id="pl.50.3"></a><var>50.3</var>    (b) The property tax statements for manufactured homes and sectional structures <br/>
<a id="pl.50.4"></a><var>50.4</var>taxed as personal property shall contain the same information that is required on the <br/>
<a id="pl.50.5"></a><var>50.5</var>tax statements for real property.<br/>
<a id="pl.50.6"></a><var>50.6</var>    (c) Real and personal property tax statements must contain the following information <br/>
<a id="pl.50.7"></a><var>50.7</var>in the order given in this paragraph. The information must contain the current year tax <br/>
<a id="pl.50.8"></a><var>50.8</var>information in the right column with the corresponding information for the previous year <br/>
<a id="pl.50.9"></a><var>50.9</var>in a column on the left:<br/>
<a id="pl.50.10"></a><var>50.10</var>    (1) the property's estimated market value under section 
         <statute_ref>273.11, subdivision 1</statute_ref>;<br/>
<a id="pl.50.11"></a><var>50.11</var>    (2) the property's taxable market value after reductions under section 
         <statute_ref>273.11, <br/>
<a id="pl.50.12"></a><var>50.12</var>subdivisions 1a and 16
         </statute_ref>;<br/>
<a id="pl.50.13"></a><var>50.13</var>    (3) the property's gross tax, before credits;<br/>
<a id="pl.50.14"></a><var>50.14</var>    (4) for homestead residential and agricultural properties, the credits credit under <br/>
<a id="pl.50.15"></a><var>50.15</var>section 
         <statute_ref>273.1384</statute_ref>;<br/>
<a id="pl.50.16"></a><var>50.16</var>    (5) 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.50.17"></a><var>50.17</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.50.18"></a><var>50.18</var>credit received under section 
         <statute_ref>273.135</statute_ref> must be separately stated and identified as "taconite <br/>
<a id="pl.50.19"></a><var>50.19</var>tax relief"; and<br/>
<a id="pl.50.20"></a><var>50.20</var>    (6) the net tax payable in the manner required in paragraph (a).<br/>
<a id="pl.50.21"></a><var>50.21</var>    (d) If the county uses envelopes for mailing property tax statements and if the county <br/>
<a id="pl.50.22"></a><var>50.22</var>agrees, a taxing district may include a notice with the property tax statement notifying <br/>
<a id="pl.50.23"></a><var>50.23</var>taxpayers when the taxing district will begin its budget deliberations for the current <br/>
<a id="pl.50.24"></a><var>50.24</var>year, and encouraging taxpayers to attend the hearings. If the county allows notices to <br/>
<a id="pl.50.25"></a><var>50.25</var>be included in the envelope containing the property tax statement, and if more than <br/>
<a id="pl.50.26"></a><var>50.26</var>one taxing district relative to a given property decides to include a notice with the tax <br/>
<a id="pl.50.27"></a><var>50.27</var>statement, the county treasurer or auditor must coordinate the process and may combine <br/>
<a id="pl.50.28"></a><var>50.28</var>the information on a single announcement.<br/>
<a id="pl.50.29"></a><var>50.29</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.50.30"></a><var>50.30</var>thereafter.<br/>
<br/>
<a id="bill.3.16.0"></a><a id="pl.50.31"></a><var>50.31</var>    Sec. 16. Minnesota Statutes 2010, section 289A.50, subdivision 1, is amended to read:<br/>
<a id="pl.50.32"></a><var>50.32</var>    Subdivision 1. <b>General right to refund.</b> (a) Subject to the requirements of this <br/>
<a id="pl.50.33"></a><var>50.33</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.50.34"></a><var>50.34</var>due and who files a written claim for refund will be refunded or credited the overpayment <br/>
<a id="pl.50.35"></a><var>50.35</var>of the tax determined by the commissioner to be erroneously paid.<br/>
<a id="pl.51.1"></a><var>51.1</var>(b) The claim must specify the name of the taxpayer, the date when and the period <br/>
<a id="pl.51.2"></a><var>51.2</var>for which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer <br/>
<a id="pl.51.3"></a><var>51.3</var>claims was erroneously paid, the grounds on which a refund is claimed, and other <br/>
<a id="pl.51.4"></a><var>51.4</var>information relative to the payment and in the form required by the commissioner. An <br/>
<a id="pl.51.5"></a><var>51.5</var>income tax, estate tax, or corporate franchise tax return, or amended return claiming an <br/>
<a id="pl.51.6"></a><var>51.6</var>overpayment constitutes a claim for refund.<br/>
<a id="pl.51.7"></a><var>51.7</var>(c) When, in the course of an examination, and within the time for requesting a <br/>
<a id="pl.51.8"></a><var>51.8</var>refund, the commissioner determines that there has been an overpayment of tax, the <br/>
<a id="pl.51.9"></a><var>51.9</var>commissioner shall refund or credit the overpayment to the taxpayer and no demand <br/>
<a id="pl.51.10"></a><var>51.10</var>is necessary. If the overpayment exceeds $1, the amount of the overpayment must <br/>
<a id="pl.51.11"></a><var>51.11</var>be refunded to the taxpayer. If the amount of the overpayment is less than $1, the <br/>
<a id="pl.51.12"></a><var>51.12</var>commissioner is not required to refund. In these situations, the commissioner does not <br/>
<a id="pl.51.13"></a><var>51.13</var>have to make written findings or serve notice by mail to the taxpayer.<br/>
<a id="pl.51.14"></a><var>51.14</var>(d) If the amount allowable as a credit for withholding, estimated taxes, or dependent <br/>
<a id="pl.51.15"></a><var>51.15</var>care exceeds the tax against which the credit is allowable, the amount of the excess is <br/>
<a id="pl.51.16"></a><var>51.16</var>considered an overpayment. The refund allowed by section 
<statute_ref>290.06, subdivision 23</statute_ref>, is also <br/>
<a id="pl.51.17"></a><var>51.17</var>considered an overpayment. The requirements of section 
         <statute_ref>270C.33</statute_ref> do not apply to the <br/>
<a id="pl.51.18"></a><var>51.18</var>refunding of such an overpayment shown on the original return filed by a taxpayer.<br/>
<a id="pl.51.19"></a><var>51.19</var>(e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes, <br/>
<a id="pl.51.20"></a><var>51.20</var>penalties, and interest reported in the return of the entertainment entity or imposed by <br/>
<a id="pl.51.21"></a><var>51.21</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.51.22"></a><var>51.22</var>less than $1, the commissioner need not refund that amount.<br/>
<a id="pl.51.23"></a><var>51.23</var>(f) If the surety deposit required for a construction contract exceeds the liability of <br/>
<a id="pl.51.24"></a><var>51.24</var>the out-of-state contractor, the commissioner shall refund the difference to the contractor.<br/>
<a id="pl.51.25"></a><var>51.25</var>(g) An action of the commissioner in refunding the amount of the overpayment does <br/>
<a id="pl.51.26"></a><var>51.26</var>not constitute a determination of the correctness of the return of the taxpayer.<br/>
<a id="pl.51.27"></a><var>51.27</var>(h) There is appropriated from the general fund to the commissioner of revenue the <br/>
<a id="pl.51.28"></a><var>51.28</var>amount necessary to pay refunds allowed under this section.<br/>
<a id="pl.51.29"></a><var>51.29</var><b>EFFECTIVE DATE.</b>This section is effective for refund claims based on <br/>
<a id="pl.51.30"></a><var>51.30</var>contributions made after June 30, 2011.<br/>
<br/>
<a id="bill.3.17.0"></a><a id="pl.51.31"></a><var>51.31</var>    Sec. 17. Minnesota Statutes 2010, section 290.01, subdivision 6, is amended to read:<br/>
<a id="pl.51.32"></a><var>51.32</var>    Subd. 6. <b>Taxpayer.</b> The term "taxpayer" means any person or corporation subject to <br/>
<a id="pl.51.33"></a><var>51.33</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.51.34"></a><var>51.34</var>"taxpayer" means an individual eligible to vote in Minnesota under section 
<statute_ref>201.014</statute_ref>.<br/>
<a id="pl.52.1"></a><var>52.1</var><b>EFFECTIVE DATE.</b>This section is effective for refund claims based on <br/>
<a id="pl.52.2"></a><var>52.2</var>contributions made after June 30, 2011.<br/>
<br/>
<a id="bill.3.18.0"></a><a id="pl.52.3"></a><var>52.3</var>    Sec. 18. Minnesota Statutes 2010, section 290A.03, subdivision 11, is amended to read:<br/>
<a id="pl.52.4"></a><var>52.4</var>    Subd. 11. <b>Rent constituting property taxes.</b> "Rent constituting property taxes" <br/>
<a id="pl.52.5"></a><var>52.5</var>means 19 15 percent of the gross rent actually paid in cash, or its equivalent, or the portion <br/>
<a id="pl.52.6"></a><var>52.6</var>of rent paid in lieu of property taxes, in any calendar year by a claimant for the right <br/>
<a id="pl.52.7"></a><var>52.7</var>of occupancy of the claimant's Minnesota homestead in the calendar year, and which <br/>
<a id="pl.52.8"></a><var>52.8</var>rent constitutes the basis, in the succeeding calendar year of a claim for relief under this <br/>
<a id="pl.52.9"></a><var>52.9</var>chapter by the claimant.<br/>
<a id="pl.52.10"></a><var>52.10</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on rent paid in <br/>
<a id="pl.52.11"></a><var>52.11</var>2010 and following years.<br/>
<br/>
<a id="bill.3.19.0"></a><a id="pl.52.12"></a><var>52.12</var>    Sec. 19. Minnesota Statutes 2010, section 290A.03, subdivision 13, is amended to read:<br/>
<a id="pl.52.13"></a><var>52.13</var>    Subd. 13. <b>Property taxes payable.</b> "Property taxes payable" means the property tax <br/>
<a id="pl.52.14"></a><var>52.14</var>exclusive of special assessments, penalties, and interest payable on a claimant's homestead <br/>
<a id="pl.52.15"></a><var>52.15</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.52.16"></a><var>52.16</var>and any other state paid property tax credits in any calendar year, and after any refund <br/>
<a id="pl.52.17"></a><var>52.17</var>claimed and allowable under section 
         <statute_ref>290A.04, subdivision 2h</statute_ref>, that is first payable in <br/>
<a id="pl.52.18"></a><var>52.18</var>the year that the property tax is payable. In the case of a claimant who makes ground <br/>
<a id="pl.52.19"></a><var>52.19</var>lease payments, "property taxes payable" includes the amount of the payments directly <br/>
<a id="pl.52.20"></a><var>52.20</var>attributable to the property taxes assessed against the parcel on which the house is located. <br/>
<a id="pl.52.21"></a><var>52.21</var>No apportionment or reduction of the "property taxes payable" shall be required for the <br/>
<a id="pl.52.22"></a><var>52.22</var>use of a portion of the claimant's homestead for a business purpose if the claimant does not <br/>
<a id="pl.52.23"></a><var>52.23</var>deduct any business depreciation expenses for the use of a portion of the homestead in the <br/>
<a id="pl.52.24"></a><var>52.24</var>determination of federal adjusted gross income. For homesteads which are manufactured <br/>
<a id="pl.52.25"></a><var>52.25</var>homes as defined in section 
         <statute_ref>273.125, subdivision 8</statute_ref>, and for homesteads which are park <br/>
<a id="pl.52.26"></a><var>52.26</var>trailers taxed as manufactured homes under section 
         <statute_ref>168.012, subdivision 9</statute_ref>, "property <br/>
<a id="pl.52.27"></a><var>52.27</var>taxes payable" shall also include 19 15 percent of the gross rent paid in the preceding <br/>
<a id="pl.52.28"></a><var>52.28</var>year for the site on which the homestead is located. When a homestead is owned by <br/>
<a id="pl.52.29"></a><var>52.29</var>two or more persons as joint tenants or tenants in common, such tenants shall determine <br/>
<a id="pl.52.30"></a><var>52.30</var>between them which tenant may claim the property taxes payable on the homestead. If <br/>
<a id="pl.52.31"></a><var>52.31</var>they are unable to agree, the matter shall be referred to the commissioner of revenue <br/>
<a id="pl.52.32"></a><var>52.32</var>whose decision shall be final. Property taxes are considered payable in the year prescribed <br/>
<a id="pl.52.33"></a><var>52.33</var>by law for payment of the taxes.<br/>
<a id="pl.53.1"></a><var>53.1</var>In the case of a claim relating to "property taxes payable," the claimant must have <br/>
<a id="pl.53.2"></a><var>53.2</var>owned and occupied the homestead on January 2 of the year in which the tax is payable <br/>
<a id="pl.53.3"></a><var>53.3</var>and (i) the property must have been classified as homestead property pursuant to section <br/>
<statute_ref><a id="pl.53.4"></a><var>53.4</var>273.124
         </statute_ref>, on or before December 15 of the assessment year to which the "property taxes <br/>
<a id="pl.53.5"></a><var>53.5</var>payable" relate; or (ii) the claimant must provide documentation from the local assessor <br/>
<a id="pl.53.6"></a><var>53.6</var>that application for homestead classification has been made on or before December 15 <br/>
<a id="pl.53.7"></a><var>53.7</var>of the year in which the "property taxes payable" were payable and that the assessor has <br/>
<a id="pl.53.8"></a><var>53.8</var>approved the application.<br/>
<a id="pl.53.9"></a><var>53.9</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on rent paid in <br/>
<a id="pl.53.10"></a><var>53.10</var>2010 and following years.<br/>
<br/>
<a id="bill.3.20.0"></a><a id="pl.53.11"></a><var>53.11</var>    Sec. 20. Minnesota Statutes 2010, section 290A.04, subdivision 2, is amended to read:<br/>
<a id="pl.53.12"></a><var>53.12</var>    Subd. 2. <b>Homeowners.</b> A claimant whose property taxes payable are in excess <br/>
<a id="pl.53.13"></a><var>53.13</var>of the percentage of the household income stated below shall pay an amount equal to <br/>
<a id="pl.53.14"></a><var>53.14</var>the percent of income shown for the appropriate household income level along with the <br/>
<a id="pl.53.15"></a><var>53.15</var>percent to be paid by the claimant of the remaining amount of property taxes payable. <br/>
<a id="pl.53.16"></a><var>53.16</var>The state refund equals the amount of property taxes payable that remain, up to the state <br/>
<a id="pl.53.17"></a><var>53.17</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.53.18"></a><var>53.18</var><br/>
<a id="pl.53.19"></a><var>53.19</var><br/>
<a id="pl.53.20"></a><var>53.20</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.53.21"></a><var>53.21</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.53.22"></a><var>53.22</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">$<br/>
</td>
<td align="right">1,850<br/>
</td>
</tr>
<tr>
<td><a id="pl.53.23"></a><var>53.23</var><br/>
</td>
<td align="right">2,380 to 3,589<br/>
</td>
<td align="center">1.2 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,800<br/>
</td>
</tr>
<tr>
<td><a id="pl.53.24"></a><var>53.24</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">$<br/>
</td>
<td align="right">1,800<br/>
</td>
</tr>
<tr>
<td><a id="pl.53.25"></a><var>53.25</var><br/>
</td>
<td align="right">4,790 to 5,979<br/>
</td>
<td align="center">1.4 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,730<br/>
</td>
</tr>
<tr>
<td><a id="pl.53.26"></a><var>53.26</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">$<br/>
</td>
<td align="right">1,730<br/>
</td>
</tr>
<tr>
<td><a id="pl.53.27"></a><var>53.27</var><br/>
</td>
<td align="right">8,370 to 9,559<br/>
</td>
<td align="center">1.6 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,670<br/>
</td>
</tr>
<tr>
<td><a id="pl.53.28"></a><var>53.28</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">$<br/>
</td>
<td align="right">1,670<br/>
</td>
</tr>
<tr>
<td><a id="pl.53.29"></a><var>53.29</var><br/>
</td>
<td align="right">10,760 to 11,949<br/>
</td>
<td align="center">1.8 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,610<br/>
</td>
</tr>
<tr>
<td><a id="pl.53.30"></a><var>53.30</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">$<br/>
</td>
<td align="right">1,610<br/>
</td>
</tr>
<tr>
<td><a id="pl.53.31"></a><var>53.31</var><br/>
</td>
<td align="right">13,140 to 14,349<br/>
</td>
<td align="center">2.0 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,540<br/>
</td>
</tr>
<tr>
<td><a id="pl.53.32"></a><var>53.32</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">$<br/>
</td>
<td align="right">1,540<br/>
</td>
</tr>
<tr>
<td><a id="pl.53.33"></a><var>53.33</var><br/>
</td>
<td align="right">16,740 to 17,929<br/>
</td>
<td align="center">2.2 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,480<br/>
</td>
</tr>
<tr>
<td><a id="pl.53.34"></a><var>53.34</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">$<br/>
</td>
<td align="right">1,480<br/>
</td>
</tr>
<tr>
<td><a id="pl.53.35"></a><var>53.35</var><br/>
</td>
<td align="right">19,120 to 20,319<br/>
</td>
<td align="center">2.4 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,420<br/>
</td>
</tr>
<tr>
<td><a id="pl.53.36"></a><var>53.36</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">$<br/>
</td>
<td align="right">1,420<br/>
</td>
</tr>
<tr>
<td><a id="pl.53.37"></a><var>53.37</var><br/>
</td>
<td align="right">25,100 to 28,679<br/>
</td>
<td align="center">2.6 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,360<br/>
</td>
</tr>
<tr>
<td><a id="pl.53.38"></a><var>53.38</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">$<br/>
</td>
<td align="right">1,360<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.1"></a><var>54.1</var><br/>
</td>
<td align="right">35,850 to 41,819<br/>
</td>
<td align="center">2.8 percent<br/>
</td>
<td align="center">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,240<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.2"></a><var>54.2</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">$<br/>
</td>
<td align="right">1,240<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.3"></a><var>54.3</var><br/>
</td>
<td align="right">47,800 to 53,779<br/>
</td>
<td align="center">3.2 percent<br/>
</td>
<td align="center">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,110<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.4"></a><var>54.4</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">$<br/>
</td>
<td align="right">990<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.5"></a><var>54.5</var><br/>
</td>
<td align="right">59,750 to 65,729<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">870<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.6"></a><var>54.6</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">$<br/>
</td>
<td align="right">740<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.7"></a><var>54.7</var><br/>
</td>
<td align="right">69,320 to 71,719<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">610<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.8"></a><var>54.8</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">$<br/>
</td>
<td align="right">500<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.9"></a><var>54.9</var><br/>
</td>
<td align="right">74,620 to 77,519<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<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.54.10"></a><var>54.10</var><br/>
<a id="pl.54.11"></a><var>54.11</var><br/>
<a id="pl.54.12"></a><var>54.12</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.54.13"></a><var>54.13</var><br/>
</td>
<td align="right">$0 to 1,549<br/>
</td>
<td align="center">1.0 percent<br/>
</td>
<td align="center">ten percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.14"></a><var>54.14</var><br/>
</td>
<td align="right">1,550 to 3,089<br/>
</td>
<td align="center">1.1 percent<br/>
</td>
<td align="center">ten percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.15"></a><var>54.15</var><br/>
</td>
<td align="right">3,090 to 4,669<br/>
</td>
<td align="center">1.2 percent<br/>
</td>
<td align="center">ten percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.16"></a><var>54.16</var><br/>
</td>
<td align="right">4,670 to 6,229<br/>
</td>
<td align="center">1.3 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.17"></a><var>54.17</var><br/>
</td>
<td align="right">6,230 to 7,769<br/>
</td>
<td align="center">1.4 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.18"></a><var>54.18</var><br/>
</td>
<td align="right">7,770 to 10,879<br/>
</td>
<td align="center">1.5 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.19"></a><var>54.19</var><br/>
</td>
<td align="right">10,880 to 12,429<br/>
</td>
<td align="center">1.6 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.20"></a><var>54.20</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">$<br/>
</td>
<td align="right">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.21"></a><var>54.21</var><br/>
</td>
<td align="right">13,990 to 15,539<br/>
</td>
<td align="center">1.8 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.22"></a><var>54.22</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">$<br/>
</td>
<td align="right">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.23"></a><var>54.23</var><br/>
</td>
<td align="right">17,080 to 18,659<br/>
</td>
<td align="center">2.0 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.24"></a><var>54.24</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">$<br/>
</td>
<td align="right">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.25"></a><var>54.25</var><br/>
</td>
<td align="right">21,760 to 23,309<br/>
</td>
<td align="center">2.2 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.26"></a><var>54.26</var><br/>
</td>
<td align="right">23,310 to 24,859<br/>
</td>
<td align="center">2.3 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.27"></a><var>54.27</var><br/>
</td>
<td align="right">24,860 to 26,419<br/>
</td>
<td align="center">2.4 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.28"></a><var>54.28</var><br/>
</td>
<td align="right">26,420 to 32,629<br/>
</td>
<td align="center">2.5 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.29"></a><var>54.29</var><br/>
</td>
<td align="right">32,630 to 37,279<br/>
</td>
<td align="center">2.6 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.30"></a><var>54.30</var><br/>
</td>
<td align="right">37,280 to 46,609<br/>
</td>
<td align="center">2.7 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.31"></a><var>54.31</var><br/>
</td>
<td align="right">46,610 to 54,369<br/>
</td>
<td align="center">2.8 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.32"></a><var>54.32</var><br/>
</td>
<td align="right">54,370 to 62,139<br/>
</td>
<td align="center">2.8 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,750<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.33"></a><var>54.33</var><br/>
</td>
<td align="right">62,140 to 69,909<br/>
</td>
<td align="center">3.0 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,440<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.34"></a><var>54.34</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">$<br/>
</td>
<td align="right">1,290<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.35"></a><var>54.35</var><br/>
</td>
<td align="right">77,680 to 84,449<br/>
</td>
<td align="center">3.0 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,130<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.36"></a><var>54.36</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">$<br/>
</td>
<td align="right">960<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.37"></a><var>54.37</var><br/>
</td>
<td align="right">90,120 to 93,239<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">790<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.38"></a><var>54.38</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">$<br/>
</td>
<td align="right">650<br/>
</td>
</tr>
<tr>
<td><a id="pl.54.39"></a><var>54.39</var><br/>
</td>
<td align="right">97,010 to 100,779<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">480<br/>
</td>
</tr>
</table><a id="pl.54.40"></a><var>54.40</var>    The payment made to a claimant shall be the amount of the state refund calculated <br/>
<a id="pl.54.41"></a><var>54.41</var>under this subdivision. No payment is allowed if the claimant's household income is <br/>
<a id="pl.54.42"></a><var>54.42</var>$77,520 $100,780 or more.<br/>
<a id="pl.55.1"></a><var>55.1</var><b>EFFECTIVE DATE.</b>This section is effective beginning with refunds based on <br/>
<a id="pl.55.2"></a><var>55.2</var>taxes payable in 2012.<br/>
<br/>
<a id="bill.3.21.0"></a><a id="pl.55.3"></a><var>55.3</var>    Sec. 21. Minnesota Statutes 2010, section 290A.04, subdivision 4, is amended to read:<br/>
<a id="pl.55.4"></a><var>55.4</var>    Subd. 4. <b>Inflation adjustment.</b> (a) Beginning for property tax refunds payable in <br/>
<a id="pl.55.5"></a><var>55.5</var>calendar year 2002, the commissioner shall annually adjust the dollar amounts of the <br/>
<a id="pl.55.6"></a><var>55.6</var>income thresholds and the maximum refunds under subdivisions 2 and 2a for inflation. <br/>
<a id="pl.55.7"></a><var>55.7</var>The commissioner shall make the inflation adjustments in accordance with section 1(f) of <br/>
<a id="pl.55.8"></a><var>55.8</var>the Internal Revenue Code, except that for purposes of this subdivision the percentage <br/>
<a id="pl.55.9"></a><var>55.9</var>increase shall be determined as provided in this subdivision.<br/>
<a id="pl.55.10"></a><var>55.10</var>(b) In adjusting the dollar amounts of the income thresholds and the maximum <br/>
<a id="pl.55.11"></a><var>55.11</var>refunds under subdivision 2 for inflation, the percentage increase shall be determined from <br/>
<a id="pl.55.12"></a><var>55.12</var>the year ending on June 30, 2011, to the year ending on June 30 of the year preceding that <br/>
<a id="pl.55.13"></a><var>55.13</var>in which the refund is payable.<br/>
<a id="pl.55.14"></a><var>55.14</var>(c) In adjusting the dollar amounts of the income thresholds and the maximum <br/>
<a id="pl.55.15"></a><var>55.15</var>refunds under subdivision 2a for inflation, the percentage increase shall be determined <br/>
<a id="pl.55.16"></a><var>55.16</var>from the year ending on June 30, 2000, to the year ending on June 30 of the year preceding <br/>
<a id="pl.55.17"></a><var>55.17</var>that in which the refund is payable. <br/>
<a id="pl.55.18"></a><var>55.18</var>(d) The commissioner shall use the appropriate percentage increase to annually <br/>
<a id="pl.55.19"></a><var>55.19</var>adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for <br/>
<a id="pl.55.20"></a><var>55.20</var>inflation without regard to whether or not the income tax brackets are adjusted for inflation <br/>
<a id="pl.55.21"></a><var>55.21</var>in that year. The commissioner shall round the thresholds and the maximum amounts, <br/>
<a id="pl.55.22"></a><var>55.22</var>as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall <br/>
<a id="pl.55.23"></a><var>55.23</var>round it up to the next $10 amount.<br/>
<a id="pl.55.24"></a><var>55.24</var>(e) The commissioner shall annually announce the adjusted refund schedule at the <br/>
<a id="pl.55.25"></a><var>55.25</var>same time provided under section 
         <statute_ref>290.06</statute_ref>. The determination of the commissioner under <br/>
<a id="pl.55.26"></a><var>55.26</var>this subdivision is not a rule under the Administrative Procedure Act.<br/>
<a id="pl.55.27"></a><var>55.27</var><b>EFFECTIVE DATE.</b>This section is effective beginning for refunds based on <br/>
<a id="pl.55.28"></a><var>55.28</var>taxes payable in 2013.<br/>
<br/>
<a id="bill.3.22.0"></a><a id="pl.55.29"></a><var>55.29</var>    Sec. 22. Minnesota Statutes 2010, section 477A.0124, is amended by adding a <br/>
<a id="pl.55.30"></a><var>55.30</var>subdivision to read:<br/>
<a id="pl.55.31"></a><var>55.31</var>    Subd. 6. <b>Aid payments in 2011 and 2012.</b> Notwithstanding total aids calculated or <br/>
<a id="pl.55.32"></a><var>55.32</var>certified for 2011 under subdivisions 3, 4, and 5, for 2011 and 2012, each county shall <br/>
<a id="pl.55.33"></a><var>55.33</var>receive an aid distribution under this section equal to the lesser of (1) the total amount of <br/>
<a id="pl.55.34"></a><var>55.34</var>aid it received under this section in 2010 after the reductions under sections 477A.0133 <br/>
<a id="pl.56.1"></a><var>56.1</var>and 477A.0134, or (2) the total amount the county is certified to receive in 2011 under <br/>
<a id="pl.56.2"></a><var>56.2</var>subdivisions 3 to 5.<br/>
<a id="pl.56.3"></a><var>56.3</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.56.4"></a><var>56.4</var>2011 and 2012.<br/>
<br/>
<a id="bill.3.23.0"></a><a id="pl.56.5"></a><var>56.5</var>    Sec. 23. Minnesota Statutes 2010, section 477A.013, subdivision 9, is amended to read:<br/>
<a id="pl.56.6"></a><var>56.6</var>    Subd. 9. <b>City aid distribution.</b> (a) In calendar year 2009 and thereafter, each <br/>
<a id="pl.56.7"></a><var>56.7</var>city shall receive an aid distribution equal to the sum of (1) the city formula aid under <br/>
<a id="pl.56.8"></a><var>56.8</var>subdivision 8, and (2) its city aid base.<br/>
<a id="pl.56.9"></a><var>56.9</var>    (b) For aids payable in 2011 2013 only, the total aid in the previous year for any <br/>
<a id="pl.56.10"></a><var>56.10</var>city shall mean the amount of aid it was certified to receive for aids payable in 2010 2012 <br/>
<a id="pl.56.11"></a><var>56.11</var>under this section minus the amount of its aid reduction under section
<statute_ref>477A.0134</statute_ref>. For aids <br/>
<a id="pl.56.12"></a><var>56.12</var>payable in 2012 2014 and thereafter, the total aid in the previous year for any city means <br/>
<a id="pl.56.13"></a><var>56.13</var>the amount of aid it was certified to receive under this section in the previous payable year.<br/>
<a id="pl.56.14"></a><var>56.14</var>    (c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed <br/>
<a id="pl.56.15"></a><var>56.15</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.56.16"></a><var>56.16</var>plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total <br/>
<a id="pl.56.17"></a><var>56.17</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.56.18"></a><var>56.18</var>this section in the previous year minus the lesser of $10 multiplied by its population, or ten <br/>
<a id="pl.56.19"></a><var>56.19</var>percent of its net levy in the year prior to the aid distribution.<br/>
<a id="pl.56.20"></a><var>56.20</var>    (d) For aids payable in 2010 and thereafter, the total aid for a city with a population <br/>
<a id="pl.56.21"></a><var>56.21</var>less than 2,500 must not be less than the amount it was certified to receive in the <br/>
<a id="pl.56.22"></a><var>56.22</var>previous year minus the lesser of $10 multiplied by its population, or five percent of its <br/>
<a id="pl.56.23"></a><var>56.23</var>2003 certified aid amount. For aids payable in 2009 only, the total aid for a city with a <br/>
<a id="pl.56.24"></a><var>56.24</var>population less than 2,500 must not be less than what it received under this section in the <br/>
<a id="pl.56.25"></a><var>56.25</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.56.26"></a><var>56.26</var>subdivision 36, paragraph (s), in which case its minimum aid is zero.<br/>
<a id="pl.56.27"></a><var>56.27</var>    (e) A city's aid loss under this section may not exceed $300,000 in any year in <br/>
<a id="pl.56.28"></a><var>56.28</var>which the total city aid appropriation under section 
         <statute_ref>477A.03, subdivision 2a</statute_ref>, is equal or <br/>
<a id="pl.56.29"></a><var>56.29</var>greater than the appropriation under that subdivision in the previous year, unless the <br/>
<a id="pl.56.30"></a><var>56.30</var>city has an adjustment in its city net tax capacity under the process described in section <br/>
<statute_ref><a id="pl.56.31"></a><var>56.31</var>469.174, subdivision 28
         </statute_ref>.<br/>
<a id="pl.56.32"></a><var>56.32</var>    (f) If a city's net tax capacity used in calculating aid under this section has decreased <br/>
<a id="pl.56.33"></a><var>56.33</var>in any year by more than 25 percent from its net tax capacity in the previous year due to <br/>
<a id="pl.56.34"></a><var>56.34</var>property becoming tax-exempt Indian land, the city's maximum allowed aid increase <br/>
<a id="pl.56.35"></a><var>56.35</var>under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the <br/>
<a id="pl.57.1"></a><var>57.1</var>year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease <br/>
<a id="pl.57.2"></a><var>57.2</var>resulting from the property becoming tax exempt.<br/>
<a id="pl.57.3"></a><var>57.3</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.57.4"></a><var>57.4</var>2012 and thereafter.<br/>
<br/>
<a id="bill.3.24.0"></a><a id="pl.57.5"></a><var>57.5</var>    Sec. 24. Minnesota Statutes 2010, section 477A.013, is amended by adding a <br/>
<a id="pl.57.6"></a><var>57.6</var>subdivision to read:<br/>
<a id="pl.57.7"></a><var>57.7</var>    Subd. 11. <b>Aid payments in 2011 and 2012.</b> Notwithstanding aids calculated or <br/>
<a id="pl.57.8"></a><var>57.8</var>certified for 2011 under subdivision 9, for 2011 and 2012, each city shall receive an aid <br/>
<a id="pl.57.9"></a><var>57.9</var>distribution under this section equal to the lesser of (1) the total amount of aid it received <br/>
<a id="pl.57.10"></a><var>57.10</var>under this section in 2010 after the reductions under sections 477A.0133 and 477A.0134, <br/>
<a id="pl.57.11"></a><var>57.11</var>and reduced by the amount of payments made under section 477A.011, subdivision <br/>
<a id="pl.57.12"></a><var>57.12</var>36, paragraphs (y) and (z), or (2) the amount it was certified to receive in 2011 under <br/>
<a id="pl.57.13"></a><var>57.13</var>subdivision 9. In 2011 only, a city that qualifies for the aid base adjustment under section <br/>
<a id="pl.57.14"></a><var>57.14</var>477A.011, subdivision 36, paragraph (aa), shall receive the amount that it was certified to <br/>
<a id="pl.57.15"></a><var>57.15</var>receive in 2011. In 2012, a city that qualifies for the aid base adjustment under section <br/>
<a id="pl.57.16"></a><var>57.16</var>477A.011, subdivision 36, paragraph (aa), shall receive the amount that it was certified <br/>
<a id="pl.57.17"></a><var>57.17</var>to receive in 2011, minus the aid base adjustment provided under section 477A.011, <br/>
<a id="pl.57.18"></a><var>57.18</var>subdivision 36, paragraph (aa).<br/>
<a id="pl.57.19"></a><var>57.19</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar years <br/>
<a id="pl.57.20"></a><var>57.20</var>2011 and 2012.<br/>
<br/>
<a id="bill.3.25.0"></a><a id="pl.57.21"></a><var>57.21</var>    Sec. 25. Minnesota Statutes 2010, section 477A.03, is amended to read:<br/>
<a id="pl.57.22"></a><var>57.22</var><b>477A.03 APPROPRIATION.</b><br/>
<a id="pl.57.23"></a><var>57.23</var>    Subd. 2. <b>Annual appropriation.</b> A sum sufficient to discharge the duties imposed <br/>
<a id="pl.57.24"></a><var>57.24</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.57.25"></a><var>57.25</var>commissioner of revenue.<br/>
<a id="pl.57.26"></a><var>57.26</var>    Subd. 2a. <b>Cities.</b> For aids payable in 2011 2013 and thereafter, the total aid paid <br/>
<a id="pl.57.27"></a><var>57.27</var>under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is $527,100,646 $426,438,012.<br/>
<a id="pl.57.28"></a><var>57.28</var>    Subd. 2b. <b>Counties.</b> (a) For aids payable in 2011 2013 and thereafter, the total aid <br/>
<a id="pl.57.29"></a><var>57.29</var>payable under section 
         <statute_ref>477A.0124, subdivision 3</statute_ref>, is $96,395,000 $80,795,000. Each <br/>
<a id="pl.57.30"></a><var>57.30</var>calendar year, $500,000 shall be retained by the commissioner of revenue to make <br/>
<a id="pl.57.31"></a><var>57.31</var>reimbursements to the commissioner of management and budget for payments made <br/>
<a id="pl.57.32"></a><var>57.32</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.57.33"></a><var>57.33</var>payments authorized under section 
         <statute_ref>477A.0124, subdivision 1</statute_ref>. For calendar year 2005 <br/>
<a id="pl.58.1"></a><var>58.1</var>and subsequent years, the amount shall be deducted from the appropriation under <br/>
<a id="pl.58.2"></a><var>58.2</var>this paragraph. The reimbursements shall be to defray the additional costs associated <br/>
<a id="pl.58.3"></a><var>58.3</var>with court-ordered counsel under section 
         <statute_ref>611.27</statute_ref>. Any retained amounts not used for <br/>
<a id="pl.58.4"></a><var>58.4</var>reimbursement in a year shall be included in the next distribution of county need aid <br/>
<a id="pl.58.5"></a><var>58.5</var>that is certified to the county auditors for the purpose of property tax reduction for the <br/>
<a id="pl.58.6"></a><var>58.6</var>next taxes payable year.<br/>
<a id="pl.58.7"></a><var>58.7</var>    (b) For aids payable in 2011 2013 and thereafter, the total aid under section <br/>
<statute_ref><a id="pl.58.8"></a><var>58.8</var>477A.0124, subdivision 4
         </statute_ref>, is $101,309,575 $84,909,575. The commissioner of <br/>
<a id="pl.58.9"></a><var>58.9</var>management and budget shall bill the commissioner of revenue for the cost of preparation <br/>
<a id="pl.58.10"></a><var>58.10</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.58.11"></a><var>58.11</var>2004 and thereafter. The commissioner of education shall bill the commissioner of <br/>
<a id="pl.58.12"></a><var>58.12</var>revenue for the cost of preparation of local impact notes for school districts as required by <br/>
<a id="pl.58.13"></a><var>58.13</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.58.14"></a><var>58.14</var>of revenue shall deduct the amounts billed under this paragraph from the appropriation <br/>
<a id="pl.58.15"></a><var>58.15</var>under this paragraph. The amounts deducted are appropriated to the commissioner of <br/>
<a id="pl.58.16"></a><var>58.16</var>management and budget and the commissioner of education for the preparation of local <br/>
<a id="pl.58.17"></a><var>58.17</var>impact notes.<br/>
<a id="pl.58.18"></a><var>58.18</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.58.19"></a><var>58.19</var>2012 and thereafter.<br/>
<br/>
<a id="bill.3.26.0"></a><a id="pl.58.20"></a><var>58.20</var>    Sec. 26. Minnesota Statutes 2010, section 477A.11, subdivision 1, is amended to read:<br/>
<a id="pl.58.21"></a><var>58.21</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.58.22"></a><var>58.22</var>the terms defined in this section have the meanings given them. <br/>
<a id="pl.58.23"></a><var>58.23</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.58.24"></a><var>58.24</var>2011 and thereafter.<br/>
<br/>
<a id="bill.3.27.0"></a><a id="pl.58.25"></a><var>58.25</var>    Sec. 27. Minnesota Statutes 2010, section 477A.12, subdivision 1, is amended to read:<br/>
<a id="pl.58.26"></a><var>58.26</var>    Subdivision 1. <b>Types of land; payments.</b> (a) As an offset for expenses incurred <br/>
<a id="pl.58.27"></a><var>58.27</var>by counties and towns in support of natural resources lands, the following amounts are <br/>
<a id="pl.58.28"></a><var>58.28</var>annually appropriated to the commissioner of natural resources from the general fund for <br/>
<a id="pl.58.29"></a><var>58.29</var>transfer to the commissioner of revenue. The commissioner of revenue shall pay the <br/>
<a id="pl.58.30"></a><var>58.30</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.58.31"></a><var>58.31</var>The amounts are:<br/>
<a id="pl.58.32"></a><var>58.32</var>(1) for acquired natural resources land, $3, as adjusted for inflation under section <br/>
<a id="pl.58.33"></a><var>58.33</var><statute_ref>477A.145</statute_ref>, $4.517 multiplied by the total number of acres of acquired natural resources <br/>
<a id="pl.59.1"></a><var>59.1</var>land or, at the county's option three-fourths of one 0.66 percent of the appraised value of <br/>
<a id="pl.59.2"></a><var>59.2</var>all acquired natural resources land in the county, whichever is greater;<br/>
<a id="pl.59.3"></a><var>59.3</var>(2) 75 cents, as adjusted for inflation under section 
<statute_ref>477A.145</statute_ref>, $1.129 multiplied by <br/>
<a id="pl.59.4"></a><var>59.4</var>the number of acres of county-administered other natural resources land;<br/>
<a id="pl.59.5"></a><var>59.5</var>(3) 75 cents, as adjusted for inflation under section 
<statute_ref>477A.145</statute_ref>, $1.129 multiplied by <br/>
<a id="pl.59.6"></a><var>59.6</var>the total number of acres of land utilization project land; and<br/>
<a id="pl.59.7"></a><var>59.7</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.59.8"></a><var>59.8</var>by the number of acres of commissioner-administered other natural resources land located <br/>
<a id="pl.59.9"></a><var>59.9</var>in each county as of July 1 of each year prior to the payment year.<br/>
<a id="pl.59.10"></a><var>59.10</var>(b) The amount determined under paragraph (a), clause (1), is payable for land <br/>
<a id="pl.59.11"></a><var>59.11</var>that is acquired from a private owner and owned by the Department of Transportation <br/>
<a id="pl.59.12"></a><var>59.12</var>for the purpose of replacing wetland losses caused by transportation projects, but only <br/>
<a id="pl.59.13"></a><var>59.13</var>if the county contains more than 500 acres of such land at the time the certification is <br/>
<a id="pl.59.14"></a><var>59.14</var>made under subdivision 2.<br/>
<a id="pl.59.15"></a><var>59.15</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.59.16"></a><var>59.16</var>2011 and thereafter.<br/>
<br/>
<a id="bill.3.28.0"></a><a id="pl.59.17"></a><var>59.17</var>    Sec. 28. Minnesota Statutes 2010, section 477A.14, subdivision 1, is amended to read:<br/>
<a id="pl.59.18"></a><var>59.18</var>    Subdivision 1. <b>General distribution.</b> Except as provided in subdivision 2 or in <br/>
<a id="pl.59.19"></a><var>59.19</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.59.20"></a><var>59.20</var>deposited in the county general revenue fund to be used to provide property tax levy <br/>
<a id="pl.59.21"></a><var>59.21</var>reduction. The remainder shall be distributed by the county in the following priority:<br/>
<a id="pl.59.22"></a><var>59.22</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.59.23"></a><var>59.23</var>each acre of county-administered other natural resources land shall be deposited in a <br/>
<a id="pl.59.24"></a><var>59.24</var>resource development fund to be created within the county treasury for use in resource <br/>
<a id="pl.59.25"></a><var>59.25</var>development, forest management, game and fish habitat improvement, and recreational <br/>
<a id="pl.59.26"></a><var>59.26</var>development and maintenance of county-administered other natural resources land. Any <br/>
<a id="pl.59.27"></a><var>59.27</var>county receiving less than $5,000 annually for the resource development fund may elect to <br/>
<a id="pl.59.28"></a><var>59.28</var>deposit that amount in the county general revenue fund;<br/>
<a id="pl.59.29"></a><var>59.29</var>(b) From the funds remaining, within 30 days of receipt of the payment to the <br/>
<a id="pl.59.30"></a><var>59.30</var>county, the county treasurer shall pay each organized township 30 cents, as adjusted for <br/>
<a id="pl.59.31"></a><var>59.31</var>inflation under section 
<statute_ref>477A.145</statute_ref>, 45.2 cents for each acre of acquired natural resources <br/>
<a id="pl.59.32"></a><var>59.32</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.59.33"></a><var>59.33</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.59.34"></a><var>59.34</var>other natural resources land and each acre of land utilization project land located within its <br/>
<a id="pl.59.35"></a><var>59.35</var>boundaries. Payments for natural resources lands not located in an organized township <br/>
<a id="pl.60.1"></a><var>60.1</var>shall be deposited in the county general revenue fund. Payments to counties and townships <br/>
<a id="pl.60.2"></a><var>60.2</var>pursuant to this paragraph shall be used to provide property tax levy reduction, except <br/>
<a id="pl.60.3"></a><var>60.3</var>that of the payments for natural resources lands not located in an organized township, the <br/>
<a id="pl.60.4"></a><var>60.4</var>county may allocate the amount determined to be necessary for maintenance of roads in <br/>
<a id="pl.60.5"></a><var>60.5</var>unorganized townships. Provided that, if the total payment to the county pursuant to <br/>
<a id="pl.60.6"></a><var>60.6</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.60.7"></a><var>60.7</var>the amount available shall be distributed to each township and the county general revenue <br/>
<a id="pl.60.8"></a><var>60.8</var>fund on a pro rata basis; and<br/>
<a id="pl.60.9"></a><var>60.9</var>(c) Any remaining funds shall be deposited in the county general revenue fund. <br/>
<a id="pl.60.10"></a><var>60.10</var>Provided that, if the distribution to the county general revenue fund exceeds $35,000, the <br/>
<a id="pl.60.11"></a><var>60.11</var>excess shall be used to provide property tax levy reduction.<br/>
<a id="pl.60.12"></a><var>60.12</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.60.13"></a><var>60.13</var>2011 and thereafter.<br/>
<br/>
<a id="bill.3.29.0"></a><a id="pl.60.14"></a><var>60.14</var>    Sec. 29. Minnesota Statutes 2010, section 477A.17, is amended to read:<br/>
<a id="pl.60.15"></a><var>60.15</var><b>477A.17 LAKE VERMILION STATE PARK AND SOUDAN </b><br/>
<a id="pl.60.16"></a><var>60.16</var><b>UNDERGROUND MINE STATE PARK; ANNUAL PAYMENTS.</b><br/>
<a id="pl.60.17"></a><var>60.17</var>    (a) Beginning in fiscal year 2012, in lieu of the payment amount provided under <br/>
<a id="pl.60.18"></a><var>60.18</var>section 
         <statute_ref>477A.12, subdivision </statute_ref>1, clause (1), the county shall receive an annual payment for <br/>
<a id="pl.60.19"></a><var>60.19</var>land acquired for Lake Vermilion State Park, established in section 
         <statute_ref>85.012, subdivision <br/>
</statute_ref><a id="pl.60.20"></a><var>60.20</var>38a, and land within the boundary of Soudan Underground Mine State Park, established <br/>
<a id="pl.60.21"></a><var>60.21</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.60.22"></a><var>60.22</var>the land.<br/>
<a id="pl.60.23"></a><var>60.23</var>    (b) For the purposes of this section, the appraised value of the land acquired for <br/>
<a id="pl.60.24"></a><var>60.24</var>Lake Vermilion State Park for the first five years after acquisition shall be the purchase <br/>
<a id="pl.60.25"></a><var>60.25</var>price of the land, plus the value of any portion of the land that is acquired by donation. <br/>
<a id="pl.60.26"></a><var>60.26</var>The appraised value must be redetermined by the county assessor every five years after <br/>
<a id="pl.60.27"></a><var>60.27</var>the land is acquired.<br/>
<a id="pl.60.28"></a><var>60.28</var>    (c) The annual payments under this section shall be distributed to the taxing <br/>
<a id="pl.60.29"></a><var>60.29</var>jurisdictions containing the property as follows: one-third to the school districts; one-third <br/>
<a id="pl.60.30"></a><var>60.30</var>to the town; and one-third to the county. The payment to school districts is not a county <br/>
<a id="pl.60.31"></a><var>60.31</var>apportionment under section 
         <statute_ref>127A.34</statute_ref> and is not subject to aid recapture. Each of those <br/>
<a id="pl.60.32"></a><var>60.32</var>taxing jurisdictions may use the payments for their general purposes.<br/>
<a id="pl.60.33"></a><var>60.33</var>    (d) Except as provided in this section, the payments shall be made as provided <br/>
<a id="pl.60.34"></a><var>60.34</var>in sections 
         <statute_ref>477A.11</statute_ref> to 
         <statute_ref>477A.13</statute_ref>.<br/>
<a id="pl.61.1"></a><var>61.1</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.61.2"></a><var>61.2</var>2011 and thereafter.<br/>
<br/>
<a id="bill.3.30.0"></a><a id="pl.61.3"></a><var>61.3</var>    Sec. 30. <b>ADMINISTRATION OF PROPERTY TAX REFUND CLAIMS; 2011.</b><br/>
<a id="pl.61.4"></a><var>61.4</var>In administering Minnesota Statutes, section 290A.03, subdivisions 11 and 13, for <br/>
<a id="pl.61.5"></a><var>61.5</var>claims for refunds submitted using 19 percent of gross rent as rent constituting property <br/>
<a id="pl.61.6"></a><var>61.6</var>taxes under prior law, the commissioner shall recalculate and pay the refund amounts <br/>
<a id="pl.61.7"></a><var>61.7</var>using 15 percent of gross rent. The commissioner shall notify the claimant that the <br/>
<a id="pl.61.8"></a><var>61.8</var>recalculation was mandated by action of the 2011 Legislature.<br/>
<a id="pl.61.9"></a><var>61.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.31.0"></a><a id="pl.61.10"></a><var>61.10</var>    Sec. 31. <b>PROPERTY TAX STATEMENT FOR TAXES PAYABLE IN 2012 ONLY.</b><br/>
<a id="pl.61.11"></a><var>61.11</var>For the purposes of the property tax statements required under Minnesota Statutes, <br/>
<a id="pl.61.12"></a><var>61.12</var>section 276.04, subdivision 2, for taxes payable in 2012 only, the gross tax amount shown <br/>
<a id="pl.61.13"></a><var>61.13</var>for the previous year is the gross tax minus the residential homestead market value credit.<br/>
<a id="pl.61.14"></a><var>61.14</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 only.<br/>
<br/>
<a id="bill.3.32.0"></a><a id="pl.61.15"></a><var>61.15</var>    Sec. 32. <b>REPORT ON PAYMENT IN LIEU OF TAXES FOR STATE NATURAL </b><br/>
<a id="pl.61.16"></a><var>61.16</var><b>RESOURCE LANDS.</b><br/>
<a id="pl.61.17"></a><var>61.17</var>By December 1, 2011, the commissioner of natural resources, after consultation with <br/>
<a id="pl.61.18"></a><var>61.18</var>the commissioners of revenue and management and budget, and stakeholders, including <br/>
<a id="pl.61.19"></a><var>61.19</var>representatives from affected local units of government and other interested parties, shall <br/>
<a id="pl.61.20"></a><var>61.20</var>report to the chairs and ranking minority caucus members of the senate and house of <br/>
<a id="pl.61.21"></a><var>61.21</var>representatives natural resources and tax policy and finance committees with recommended <br/>
<a id="pl.61.22"></a><var>61.22</var>changes to payment in lieu of taxes for natural resource lands under Minnesota Statutes, <br/>
<a id="pl.61.23"></a><var>61.23</var>sections 97A.061 and 477A.11 to 477A.145. The report shall include an analysis of the <br/>
<a id="pl.61.24"></a><var>61.24</var>current payment and distribution system, and any recommended changes to:<br/>
<a id="pl.61.25"></a><var>61.25</var>(1) the purpose of the payment system and the criteria for payments;<br/>
<a id="pl.61.26"></a><var>61.26</var>(2) the rate of payments for specific classes of natural resource lands;<br/>
<a id="pl.61.27"></a><var>61.27</var>(3) the formula for distribution of the payments to local units of government; and<br/>
<a id="pl.61.28"></a><var>61.28</var>(4) recognition in the amount of the payments of the tax capacity foregone by the <br/>
<a id="pl.61.29"></a><var>61.29</var>local government due to the loss of the future development potential of the land.<br/>
<br/>
<a id="bill.3.33.0"></a><a id="pl.61.30"></a><var>61.30</var>    Sec. 33. <b>CONSOLIDATION AND SERVICE-SHARING GRANTS; </b><br/>
<a id="pl.61.31"></a><var>61.31</var><b>APPROPRIATION.</b><br/>
<a id="pl.62.1"></a><var>62.1</var>    Subdivision 1. <b>Definition.</b> For the purposes of this section, "local government" <br/>
<a id="pl.62.2"></a><var>62.2</var>means a county or a home rule charter or statutory city.<br/>
<a id="pl.62.3"></a><var>62.3</var>    Subd. 2. <b>Grants.</b> (a) The state auditor may make a consolidation grant to a local <br/>
<a id="pl.62.4"></a><var>62.4</var>government that is planning to consolidate with at least one other contiguous local <br/>
<a id="pl.62.5"></a><var>62.5</var>government of the same type. The grants shall be made on a first-come first-served <br/>
<a id="pl.62.6"></a><var>62.6</var>basis. The state auditor shall determine the form and content of the application and <br/>
<a id="pl.62.7"></a><var>62.7</var>grant agreements. An application must contain a resolution adopted by the governing <br/>
<a id="pl.62.8"></a><var>62.8</var>body of each participating local government supporting the consolidation of the local <br/>
<a id="pl.62.9"></a><var>62.9</var>governments. The amount of the grant shall be determined by the state auditor based on <br/>
<a id="pl.62.10"></a><var>62.10</var>the estimated cost to the local governments of the consolidation process and their need for <br/>
<a id="pl.62.11"></a><var>62.11</var>state financial assistance to accomplish the consolidation. The maximum grant amount is <br/>
<a id="pl.62.12"></a><var>62.12</var>$100,000 per local government.<br/>
<a id="pl.62.13"></a><var>62.13</var>(b) The state auditor may make a service-sharing grant to a local government that <br/>
<a id="pl.62.14"></a><var>62.14</var>is planning to implement a program of providing shared services in cooperation with at <br/>
<a id="pl.62.15"></a><var>62.15</var>least one other local government. The grants shall be made on a first-come first-served <br/>
<a id="pl.62.16"></a><var>62.16</var>basis. The state auditor shall determine the form and content of the application and grant <br/>
<a id="pl.62.17"></a><var>62.17</var>agreements. An application must contain a resolution adopted by the governing body of <br/>
<a id="pl.62.18"></a><var>62.18</var>each participating local government supporting the plan to provide shared services. The <br/>
<a id="pl.62.19"></a><var>62.19</var>amount of the grant shall be determined by the state auditor based on the estimated cost <br/>
<a id="pl.62.20"></a><var>62.20</var>to the local governments of implementing the service-sharing plan, and their need for <br/>
<a id="pl.62.21"></a><var>62.21</var>state financial assistance to accomplish it. The maximum grant amount is $100,000 per <br/>
<a id="pl.62.22"></a><var>62.22</var>local government.<br/>
<a id="pl.62.23"></a><var>62.23</var>    Subd. 3. <b>Report.</b> The state auditor must report to the governor and legislative <br/>
<a id="pl.62.24"></a><var>62.24</var>committees with jurisdiction over local government governance and local government <br/>
<a id="pl.62.25"></a><var>62.25</var>taxes and finance on the consolidation and service-sharing grants made and how the <br/>
<a id="pl.62.26"></a><var>62.26</var>money was used. An interim report is due February 1, 2012, and a final report is due <br/>
<a id="pl.62.27"></a><var>62.27</var>December 15, 2012.<br/>
<a id="pl.62.28"></a><var>62.28</var>    Subd. 4. <b>Appropriation.</b> $3,500,000 is appropriated from the general fund to the <br/>
<a id="pl.62.29"></a><var>62.29</var>state auditor for each of the fiscal years 2012 and 2013, to make grants to counties and <br/>
<a id="pl.62.30"></a><var>62.30</var>cities as provided in this section. In each of those years, $2,500,000 is to be used for <br/>
<a id="pl.62.31"></a><var>62.31</var>consolidation grants and $1,000,000 is to be used for service-sharing grants, provided that <br/>
<a id="pl.62.32"></a><var>62.32</var>if by November 30 in either year, one of those amounts has not been used for its primary <br/>
<a id="pl.62.33"></a><var>62.33</var>purpose, that remainder may be used for the other type of grants.<br/>
<br/>
<a id="bill.3.34.0"></a><a id="pl.62.34"></a><var>62.34</var>    Sec. 34. <b> REPEALER.</b><br/>
<a id="pl.63.1"></a><var>63.1</var>(a) Minnesota Statutes 2010, sections 10A.322, subdivision 4; and 13.4967, <br/>
<a id="pl.63.2"></a><var>63.2</var>subdivision 2, are repealed.<br/>
<a id="pl.63.3"></a><var>63.3</var>(b) Minnesota Statutes 2010, section 290.06, subdivision 23, is repealed.<br/>
<a id="pl.63.4"></a><var>63.4</var>(c) Minnesota Statutes 2010, sections 275.295; and 477A.145, are repealed.<br/>
<a id="pl.63.5"></a><var>63.5</var>(d) Minnesota Statutes 2010, section 273.1384, subdivision 6, is repealed.<br/>
<a id="pl.63.6"></a><var>63.6</var>(e) Minnesota Statutes 2010, section 273.1398, subdivision 4, is repealed.<br/>
<a id="pl.63.7"></a><var>63.7</var>(f) Minnesota Statutes 2010, sections 290C.01; 290C.02; 290C.03; 290C.04; <br/>
<a id="pl.63.8"></a><var>63.8</var>290C.05; 290C.055; 290C.06; 290C.07; 290C.08; 290C.09; 290C.10; 290C.11; 290C.12; <br/>
<a id="pl.63.9"></a><var>63.9</var>and 290C.13, are repealed.<br/>
<a id="pl.63.10"></a><var>63.10</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective the day following final enactment. <br/>
<a id="pl.63.11"></a><var>63.11</var>Paragraph (b) is effective for refund claims based on contributions made after June 30, <br/>
<a id="pl.63.12"></a><var>63.12</var>2011. Paragraph (c) is effective for aids payable in 2011 and thereafter. Paragraph (d) <br/>
<a id="pl.63.13"></a><var>63.13</var>is effective for taxes payable in 2012 and thereafter. Paragraph (e) is effective for taxes <br/>
<a id="pl.63.14"></a><var>63.14</var>payable in 2015 and thereafter. Paragraph (f) is effective July 1, 2011, and the covenants <br/>
<a id="pl.63.15"></a><var>63.15</var>under the program are void on that date. No later than 60 days after enactment of this <br/>
<a id="pl.63.16"></a><var>63.16</var>section, the commissioner of revenue shall issue a document to each enrollee immediately <br/>
<a id="pl.63.17"></a><var>63.17</var>releasing the land from the covenant as provided in Minnesota Statutes 2010, section <br/>
<a id="pl.63.18"></a><var>63.18</var>290C.04, paragraph (c).<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.63.21"></a><var>63.21</var>    Section 1. Minnesota Statutes 2010, section 272.02, subdivision 39, is amended to read:<br/>
<a id="pl.63.22"></a><var>63.22</var>    Subd. 39. <b>Economic development; public purpose.</b> The holding of property by a <br/>
<a id="pl.63.23"></a><var>63.23</var>political subdivision of the state for later resale for economic development purposes shall <br/>
<a id="pl.63.24"></a><var>63.24</var>be considered a public purpose in accordance with subdivision 8 for a period not to exceed <br/>
<a id="pl.63.25"></a><var>63.25</var>eight ten years, except that for property located in a city of 5,000 population or under that <br/>
<a id="pl.63.26"></a><var>63.26</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.63.27"></a><var>63.27</var>period must not exceed 15 years.<br/>
<a id="pl.63.28"></a><var>63.28</var>The holding of property by a political subdivision of the state for later resale (1) <br/>
<a id="pl.63.29"></a><var>63.29</var>which is purchased or held for housing purposes, or (2) which meets the conditions <br/>
<a id="pl.63.30"></a><var>63.30</var>described in section 
         <statute_ref>469.174, subdivision 10</statute_ref>, shall be considered a public purpose in <br/>
<a id="pl.63.31"></a><var>63.31</var>accordance with subdivision 8.<br/>
<a id="pl.63.32"></a><var>63.32</var>The governing body of the political subdivision which acquires property which is <br/>
<a id="pl.63.33"></a><var>63.33</var>subject to this subdivision shall after the purchase of the property certify to the city or <br/>
<a id="pl.63.34"></a><var>63.34</var>county assessor whether the property is held for economic development purposes or <br/>
<a id="pl.64.1"></a><var>64.1</var>housing purposes, or whether it meets the conditions of section 
         <statute_ref>469.174, subdivision 10</statute_ref>. <br/>
<a id="pl.64.2"></a><var>64.2</var>If the property is acquired for economic development purposes and buildings or other <br/>
<a id="pl.64.3"></a><var>64.3</var>improvements are constructed after acquisition of the property, and if more than one-half <br/>
<a id="pl.64.4"></a><var>64.4</var>of the floor space of the buildings or improvements which is available for lease to or use <br/>
<a id="pl.64.5"></a><var>64.5</var>by a private individual, corporation, or other entity is leased to or otherwise used by <br/>
<a id="pl.64.6"></a><var>64.6</var>a private individual, corporation, or other entity the provisions of this subdivision shall <br/>
<a id="pl.64.7"></a><var>64.7</var>not apply to the property. This subdivision shall not create an exemption from section <br/>
<statute_ref><a id="pl.64.8"></a><var>64.8</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.64.9"></a><var>64.9</var>law providing for the taxation of or for payments in lieu of taxes for publicly held property <br/>
<a id="pl.64.10"></a><var>64.10</var>which is leased, loaned, or otherwise made available and used by a private person.<br/>
<a id="pl.64.11"></a><var>64.11</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in 2011, payable <br/>
<a id="pl.64.12"></a><var>64.12</var>in 2012, and thereafter.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.64.13"></a><var>64.13</var>    Sec. 2. Minnesota Statutes 2010, section 272.02, is amended by adding a subdivision <br/>
<a id="pl.64.14"></a><var>64.14</var>to read:<br/>
<a id="pl.64.15"></a><var>64.15</var>    Subd. 95. <b>Electric generation facility; personal property.</b> (a) Notwithstanding <br/>
<a id="pl.64.16"></a><var>64.16</var>subdivision 9, clause (a), and section 453.54, subdivision 20, attached machinery and other <br/>
<a id="pl.64.17"></a><var>64.17</var>personal property that is part of a multiple reciprocating engine electric generation facility <br/>
<a id="pl.64.18"></a><var>64.18</var>that adds more than 20 and less than 30 megawatts of installed capacity at a site where <br/>
<a id="pl.64.19"></a><var>64.19</var>there is presently more than ten megawatts and fewer than 15 megawatts of installed <br/>
<a id="pl.64.20"></a><var>64.20</var>capacity and that meets the requirements of this subdivision is exempt from taxation and <br/>
<a id="pl.64.21"></a><var>64.21</var>from payments in lieu of taxation. At the time of construction, the facility must:<br/>
<a id="pl.64.22"></a><var>64.22</var>(1) be designed to utilize natural gas as a primary fuel;<br/>
<a id="pl.64.23"></a><var>64.23</var>(2) be owned and operated by a municipal power agency as defined in section <br/>
<a id="pl.64.24"></a><var>64.24</var>453.52, subdivision 8;<br/>
<a id="pl.64.25"></a><var>64.25</var>(3) be located within one mile of an existing natural gas pipeline;<br/>
<a id="pl.64.26"></a><var>64.26</var>(4) be designed to have black start capability and to furnish emergency backup <br/>
<a id="pl.64.27"></a><var>64.27</var>power service to the city in which it is located;<br/>
<a id="pl.64.28"></a><var>64.28</var>(5) satisfy a resource deficiency identified in an approved integrated resource plan <br/>
<a id="pl.64.29"></a><var>64.29</var>filed under section 216B.2422; and <br/>
<a id="pl.64.30"></a><var>64.30</var>(6) have received, by resolution, the approval of the governing bodies of the city <br/>
<a id="pl.64.31"></a><var>64.31</var>and county in which it is located for the exemption of personal property provided by <br/>
<a id="pl.64.32"></a><var>64.32</var>this subdivision.<br/>
<a id="pl.64.33"></a><var>64.33</var>(b) Construction of the facility must be commenced after December 31, 2011, and <br/>
<a id="pl.64.34"></a><var>64.34</var>before January 1, 2015. Property eligible for this exemption does not include (i) electric <br/>
<a id="pl.64.35"></a><var>64.35</var>transmission lines and interconnections or gas pipelines and interconnections appurtenant <br/>
<a id="pl.65.1"></a><var>65.1</var>to the property or the facility; or (ii) property located on the site on the enactment date <br/>
<a id="pl.65.2"></a><var>65.2</var>of this subdivision.<br/>
<a id="pl.65.3"></a><var>65.3</var><b>EFFECTIVE DATE.</b>This section is effective for assessments in 2012, taxes <br/>
<a id="pl.65.4"></a><var>65.4</var>payable in 2013, and thereafter.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.65.5"></a><var>65.5</var>    Sec. 3. Minnesota Statutes 2010, section 273.111, is amended by adding a subdivision <br/>
<a id="pl.65.6"></a><var>65.6</var>to read:<br/>
<a id="pl.65.7"></a><var>65.7</var>    Subd. 17. <b>Appeal.</b> If an assessor denies an application for valuation under this <br/>
<a id="pl.65.8"></a><var>65.8</var>section, the applicant may appeal the decision to the local board of appeal and equalization <br/>
<a id="pl.65.9"></a><var>65.9</var>as provided under section 274.01, subdivision 1, paragraph (h).<br/>
<a id="pl.65.10"></a><var>65.10</var><b>EFFECTIVE DATE.</b>This section is effective for appeals denied after June 30, <br/>
<a id="pl.65.11"></a><var>65.11</var>2011.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.65.12"></a><var>65.12</var>    Sec. 4. Minnesota Statutes 2010, section 273.114, subdivision 2, is amended to read:<br/>
<a id="pl.65.13"></a><var>65.13</var>    Subd. 2. <b>Requirements.</b> Class 2a or 2b property that had been assessed properly <br/>
<a id="pl.65.14"></a><var>65.14</var>classified under Minnesota Statutes 2006, section 273.111, or that is part of an agricultural <br/>
<a id="pl.65.15"></a><var>65.15</var>homestead under Minnesota Statutes, section 273.13, subdivision 23, paragraph (a), is <br/>
<a id="pl.65.16"></a><var>65.16</var>entitled to valuation and tax deferment under this section if:<br/>
<a id="pl.65.17"></a><var>65.17</var>(1) the land consists of at least ten acres;<br/>
<a id="pl.65.18"></a><var>65.18</var>(2) a conservation assessment plan for the land must be prepared by an approved <br/>
<a id="pl.65.19"></a><var>65.19</var>plan writer and implemented during the period in which the land is subject to valuation <br/>
<a id="pl.65.20"></a><var>65.20</var>and deferment under this section;<br/>
<a id="pl.65.21"></a><var>65.21</var>(3) the land must be enrolled for a minimum of eight years;<br/>
<a id="pl.65.22"></a><var>65.22</var>(4) there are no delinquent property taxes on the land; and<br/>
<a id="pl.65.23"></a><var>65.23</var>(5) (3) the property is not also enrolled for valuation and deferment under section <br/>
<a id="pl.65.24"></a><var>65.24</var>273.111 or 273.112, or chapter 290C or 473H.<br/>
<a id="pl.65.25"></a><var>65.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.65.26"></a><var>65.26</var>    Sec. 5. Minnesota Statutes 2010, section 273.114, subdivision 5, is amended to read:<br/>
<a id="pl.65.27"></a><var>65.27</var>    Subd. 5. <b>Application </b><b>and covenant agreement</b><b>.</b> (a) Application for deferment <br/>
<a id="pl.65.28"></a><var>65.28</var>of taxes and assessment under this section shall be filed by May 1 of the year prior to <br/>
<a id="pl.65.29"></a><var>65.29</var>the year in which the taxes are payable. Any application filed under this subdivision <br/>
<a id="pl.65.30"></a><var>65.30</var>and granted shall continue in effect for subsequent years until the termination of the <br/>
<a id="pl.65.31"></a><var>65.31</var>covenant agreement under paragraph (b) property is withdrawn or no longer qualifies. <br/>
<a id="pl.65.32"></a><var>65.32</var>The application must be filed with the assessor of the taxing district in which the real <br/>
<a id="pl.66.1"></a><var>66.1</var>property is located on the form prescribed by the commissioner of revenue. Each <br/>
<a id="pl.66.2"></a><var>66.2</var>application must include the most recent available aerial photograph or satellite image <br/>
<a id="pl.66.3"></a><var>66.3</var>of the property provided by the Farm Service Agency of the United States Department <br/>
<a id="pl.66.4"></a><var>66.4</var>of Agriculture that clearly delineates the land that is to be enrolled. The application <br/>
<a id="pl.66.5"></a><var>66.5</var>form must contain a statement setting forth the consequences to the property owner of <br/>
<a id="pl.66.6"></a><var>66.6</var>termination of qualification of property under the rural preserve program, together with a <br/>
<a id="pl.66.7"></a><var>66.7</var>recommendation that land that is likely to be changed to a nonqualifying use during the <br/>
<a id="pl.66.8"></a><var>66.8</var>period of enrollment should not be included in the application. The assessor may require <br/>
<a id="pl.66.9"></a><var>66.9</var>proof by affidavit or otherwise that the property qualifies under subdivision 2.<br/>
<a id="pl.66.10"></a><var>66.10</var>    (b) The owner of the property must sign a covenant agreement that is filed with the <br/>
<a id="pl.66.11"></a><var>66.11</var>county recorder and recorded in the county where the property is located. The covenant <br/>
<a id="pl.66.12"></a><var>66.12</var>agreement must include all of the following:<br/>
<a id="pl.66.13"></a><var>66.13</var>    (1) legal description of the area to which the covenant applies;<br/>
<a id="pl.66.14"></a><var>66.14</var>    (2) name and address of the owner;<br/>
<a id="pl.66.15"></a><var>66.15</var>    (3) a statement that the land described in the covenant must be kept as rural preserve <br/>
<a id="pl.66.16"></a><var>66.16</var>land, which meets the requirements of subdivision 2, for the duration of the covenant;<br/>
<a id="pl.66.17"></a><var>66.17</var>    (4) a statement that the landowner may terminate the covenant agreement by <br/>
<a id="pl.66.18"></a><var>66.18</var>notifying the county assessor in writing three years in advance of the date of proposed <br/>
<a id="pl.66.19"></a><var>66.19</var>termination, provided that the notice of intent to terminate may not be given at any time <br/>
<a id="pl.66.20"></a><var>66.20</var>before the land has been subject to the covenant for a period of five years;<br/>
<a id="pl.66.21"></a><var>66.21</var>    (5) a statement that the covenant is binding on the owner or the owner's successor or <br/>
<a id="pl.66.22"></a><var>66.22</var>assigns and runs with the land; and<br/>
<a id="pl.66.23"></a><var>66.23</var>    (6) a witnessed signature of the owner, agreeing by covenant, to maintain the land as <br/>
<a id="pl.66.24"></a><var>66.24</var>described in subdivision 2.<br/>
<a id="pl.66.25"></a><var>66.25</var>(c) After a covenant under this section has been terminated, the land that had been <br/>
<a id="pl.66.26"></a><var>66.26</var>subject to the covenant is ineligible for subsequent valuation under this section for a <br/>
<a id="pl.66.27"></a><var>66.27</var>period of three years after the termination.<br/>
<a id="pl.66.28"></a><var>66.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.66.29"></a><var>66.29</var>    Sec. 6. Minnesota Statutes 2010, section 273.114, subdivision 6, is amended to read:<br/>
<a id="pl.66.30"></a><var>66.30</var>    Subd. 6. <b>Additional taxes.</b> Upon termination of a covenant agreement in <br/>
<a id="pl.66.31"></a><var>66.31</var>subdivision 5, paragraph (b), the land to which the covenant applied When real property <br/>
<a id="pl.66.32"></a><var>66.32</var>which is being, or has been valued and assessed under this section no longer qualifies <br/>
<a id="pl.66.33"></a><var>66.33</var>under subdivision 2, the portion no longer qualifying shall be subject to additional taxes <br/>
<a id="pl.66.34"></a><var>66.34</var>in the amount equal to the difference between the taxes determined in accordance with <br/>
<a id="pl.66.35"></a><var>66.35</var>subdivision 3 and the amount determined under subdivision 4, provided that the amount <br/>
<a id="pl.67.1"></a><var>67.1</var>determined under subdivision 4 shall not be greater than it would have been had the <br/>
<a id="pl.67.2"></a><var>67.2</var>actual bona fide sale price of the real property at an arm's-length transaction been used in <br/>
<a id="pl.67.3"></a><var>67.3</var>lieu of the market value determined under subdivision 4. The additional taxes shall be <br/>
<a id="pl.67.4"></a><var>67.4</var>extended against the property on the tax list for the current year, provided that no interest <br/>
<a id="pl.67.5"></a><var>67.5</var>or penalties shall be levied on the additional taxes if timely paid and that the additional <br/>
<a id="pl.67.6"></a><var>67.6</var>taxes shall only be levied with respect to the current year plus two prior years that the <br/>
<a id="pl.67.7"></a><var>67.7</var>property has been valued and assessed under this section.<br/>
<a id="pl.67.8"></a><var>67.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.67.9"></a><var>67.9</var>    Sec. 7. Minnesota Statutes 2010, section 273.13, subdivision 25, is amended to read:<br/>
<a id="pl.67.10"></a><var>67.10</var>    Subd. 25. <b>Class 4.</b> (a) Class 4a is residential real estate containing four or more <br/>
<a id="pl.67.11"></a><var>67.11</var>units and used or held for use by the owner or by the tenants or lessees of the owner <br/>
<a id="pl.67.12"></a><var>67.12</var>as a residence for rental periods of 30 days or more, excluding property qualifying for <br/>
<a id="pl.67.13"></a><var>67.13</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.67.14"></a><var>67.14</var>than hospitals exempt under section 
         <statute_ref>272.02</statute_ref>, and contiguous property used for hospital <br/>
<a id="pl.67.15"></a><var>67.15</var>purposes, without regard to whether the property has been platted or subdivided. The <br/>
<a id="pl.67.16"></a><var>67.16</var>market value of class 4a property has a class rate of 1.25 percent.<br/>
<a id="pl.67.17"></a><var>67.17</var>    (b) Class 4b includes:<br/>
<a id="pl.67.18"></a><var>67.18</var>    (1) residential real estate containing less than four units that does not qualify as class <br/>
<a id="pl.67.19"></a><var>67.19</var>4bb, other than seasonal residential recreational property;<br/>
<a id="pl.67.20"></a><var>67.20</var>    (2) manufactured homes not classified under any other provision;<br/>
<a id="pl.67.21"></a><var>67.21</var>    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead <br/>
<a id="pl.67.22"></a><var>67.22</var>farm classified under subdivision 23, paragraph (b) containing two or three units; and<br/>
<a id="pl.67.23"></a><var>67.23</var>    (4) unimproved property that is classified residential as determined under subdivision <br/>
<a id="pl.67.24"></a><var>67.24</var>33.<br/>
<a id="pl.67.25"></a><var>67.25</var>    The market value of class 4b property has a class rate of 1.25 percent.<br/>
<a id="pl.67.26"></a><var>67.26</var>    (c) Class 4bb includes:<br/>
<a id="pl.67.27"></a><var>67.27</var>    (1) nonhomestead residential real estate containing one unit, other than seasonal <br/>
<a id="pl.67.28"></a><var>67.28</var>residential recreational property; and<br/>
<a id="pl.67.29"></a><var>67.29</var>    (2) a single family dwelling, garage, and surrounding one acre of property on a <br/>
<a id="pl.67.30"></a><var>67.30</var>nonhomestead farm classified under subdivision 23, paragraph (b).<br/>
<a id="pl.67.31"></a><var>67.31</var>    Class 4bb property has the same class rates as class 1a property under subdivision 22.<br/>
<a id="pl.67.32"></a><var>67.32</var>    Property that has been classified as seasonal residential recreational property at <br/>
<a id="pl.67.33"></a><var>67.33</var>any time during which it has been owned by the current owner or spouse of the current <br/>
<a id="pl.67.34"></a><var>67.34</var>owner does not qualify for class 4bb.<br/>
<a id="pl.67.35"></a><var>67.35</var>    (d) Class 4c property includes:<br/>
<a id="pl.68.1"></a><var>68.1</var>    (1) except as provided in subdivision 22, paragraph (c), real and personal property <br/>
<a id="pl.68.2"></a><var>68.2</var>devoted to temporary and seasonal residential occupancy for recreation purposes, <br/>
<a id="pl.68.3"></a><var>68.3</var>including real and personal property devoted to temporary and seasonal residential <br/>
<a id="pl.68.4"></a><var>68.4</var>occupancy for recreation purposes and not devoted to commercial purposes for more <br/>
<a id="pl.68.5"></a><var>68.5</var>than 250 days in the year preceding the year of assessment. For purposes of this clause, <br/>
<a id="pl.68.6"></a><var>68.6</var>property is devoted to a commercial purpose on a specific day if any portion of the <br/>
<a id="pl.68.7"></a><var>68.7</var>property is used for residential occupancy, and a fee is charged for residential occupancy. <br/>
<a id="pl.68.8"></a><var>68.8</var>Class 4c property under this clause must contain three or more rental units. A "rental unit" <br/>
<a id="pl.68.9"></a><var>68.9</var>is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site <br/>
<a id="pl.68.10"></a><var>68.10</var>equipped with water and electrical hookups for recreational vehicles. Class 4c property <br/>
<a id="pl.68.11"></a><var>68.11</var>under this clause must provide recreational activities such as renting ice fishing houses, <br/>
<a id="pl.68.12"></a><var>68.12</var>boats and motors, snowmobiles, downhill or cross-country ski equipment; provide marina <br/>
<a id="pl.68.13"></a><var>68.13</var>services, launch services, or guide services; or sell bait and fishing tackle. A camping pad <br/>
<a id="pl.68.14"></a><var>68.14</var>offered for rent by a property that otherwise qualifies for class 4c under this clause is also <br/>
<a id="pl.68.15"></a><var>68.15</var>class 4c under this clause regardless of the term of the rental agreement, as long as the use <br/>
<a id="pl.68.16"></a><var>68.16</var>of the camping pad does not exceed 250 days. In order for a property to be classified as <br/>
<a id="pl.68.17"></a><var>68.17</var>class 4c, seasonal residential recreational for commercial purposes under this clause, at <br/>
<a id="pl.68.18"></a><var>68.18</var>least 40 percent of the annual gross lodging receipts related to the property must be from <br/>
<a id="pl.68.19"></a><var>68.19</var>business conducted during 90 consecutive days and either (i) at least 60 percent of all paid <br/>
<a id="pl.68.20"></a><var>68.20</var>bookings by lodging guests during the year must be for periods of at least two consecutive <br/>
<a id="pl.68.21"></a><var>68.21</var>nights; or (ii) at least 20 percent of the annual gross receipts must be from charges for <br/>
<a id="pl.68.22"></a><var>68.22</var>rental of fish houses, boats and motors, snowmobiles, downhill or cross-country ski <br/>
<a id="pl.68.23"></a><var>68.23</var>equipment, or charges for marina services, launch services, and guide services, or the <br/>
<a id="pl.68.24"></a><var>68.24</var>sale of bait and fishing tackle. For purposes of this determination, a paid booking of <br/>
<a id="pl.68.25"></a><var>68.25</var>five or more nights shall be counted as two bookings. Class 4c property classified under <br/>
<a id="pl.68.26"></a><var>68.26</var>this clause also includes commercial use real property used exclusively for recreational <br/>
<a id="pl.68.27"></a><var>68.27</var>purposes in conjunction with other class 4c property classified under this clause and <br/>
<a id="pl.68.28"></a><var>68.28</var>devoted to temporary and seasonal residential occupancy for recreational purposes, up to a <br/>
<a id="pl.68.29"></a><var>68.29</var>total of two acres, provided the property is not devoted to commercial recreational use for <br/>
<a id="pl.68.30"></a><var>68.30</var>more than 250 days in the year preceding the year of assessment and is located within two <br/>
<a id="pl.68.31"></a><var>68.31</var>miles of the class 4c property with which it is used. Owners of real and personal property <br/>
<a id="pl.68.32"></a><var>68.32</var>devoted to temporary and seasonal residential occupancy for recreation purposes and all <br/>
<a id="pl.68.33"></a><var>68.33</var>or a portion of which was devoted to commercial purposes for not more than 250 days in <br/>
<a id="pl.68.34"></a><var>68.34</var>the year preceding the year of assessment desiring classification as class 4c, must submit a <br/>
<a id="pl.68.35"></a><var>68.35</var>declaration to the assessor designating the cabins or units occupied for 250 days or less in <br/>
<a id="pl.68.36"></a><var>68.36</var>the year preceding the year of assessment by January 15 of the assessment year. Those <br/>
<a id="pl.69.1"></a><var>69.1</var>cabins or units and a proportionate share of the land on which they are located must <br/>
<a id="pl.69.2"></a><var>69.2</var>be designated class 4c under this clause as otherwise provided. The remainder of the <br/>
<a id="pl.69.3"></a><var>69.3</var>cabins or units and a proportionate share of the land on which they are located will be <br/>
<a id="pl.69.4"></a><var>69.4</var>designated as class 3a. The owner of property desiring designation as class 4c property <br/>
<a id="pl.69.5"></a><var>69.5</var>under this clause must provide guest registers or other records demonstrating that the units <br/>
<a id="pl.69.6"></a><var>69.6</var>for which class 4c designation is sought were not occupied for more than 250 days in the <br/>
<a id="pl.69.7"></a><var>69.7</var>year preceding the assessment if so requested. The portion of a property operated as a <br/>
<a id="pl.69.8"></a><var>69.8</var>(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other <br/>
<a id="pl.69.9"></a><var>69.9</var>nonresidential facility operated on a commercial basis not directly related to temporary <br/>
<a id="pl.69.10"></a><var>69.10</var>and seasonal residential occupancy for recreation purposes does not qualify for class 4c;<br/>
<a id="pl.69.11"></a><var>69.11</var>    (2) qualified property used as a golf course if:<br/>
<a id="pl.69.12"></a><var>69.12</var>    (i) it is open to the public on a daily fee basis. It may charge membership fees or <br/>
<a id="pl.69.13"></a><var>69.13</var>dues, but a membership fee may not be required in order to use the property for golfing, <br/>
<a id="pl.69.14"></a><var>69.14</var>and its green fees for golfing must be comparable to green fees typically charged by <br/>
<a id="pl.69.15"></a><var>69.15</var>municipal courses; and<br/>
<a id="pl.69.16"></a><var>69.16</var>    (ii) it meets the requirements of section 
         <statute_ref>273.112, subdivision 3</statute_ref>, paragraph (d).<br/>
<a id="pl.69.17"></a><var>69.17</var>    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction <br/>
<a id="pl.69.18"></a><var>69.18</var>with the golf course is classified as class 3a property;<br/>
<a id="pl.69.19"></a><var>69.19</var>    (3) real property up to a maximum of three acres of land owned and used by a <br/>
<a id="pl.69.20"></a><var>69.20</var>nonprofit community service oriented organization and not used for residential purposes <br/>
<a id="pl.69.21"></a><var>69.21</var>on either a temporary or permanent basis, provided that:<br/>
<a id="pl.69.22"></a><var>69.22</var>    (i) the property is not used for a revenue-producing activity for more than six days <br/>
<a id="pl.69.23"></a><var>69.23</var>in the calendar year preceding the year of assessment; or<br/>
<a id="pl.69.24"></a><var>69.24</var>    (ii) the organization makes annual charitable contributions and donations at least <br/>
<a id="pl.69.25"></a><var>69.25</var>equal to the property's previous year's property taxes and the property is allowed to be <br/>
<a id="pl.69.26"></a><var>69.26</var>used for public and community meetings or events for no charge, as appropriate to the <br/>
<a id="pl.69.27"></a><var>69.27</var>size of the facility.<br/>
<a id="pl.69.28"></a><var>69.28</var>    For purposes of this clause,<br/>
<a id="pl.69.29"></a><var>69.29</var>    (A) "charitable contributions and donations contribution" has the same meaning <br/>
<a id="pl.69.30"></a><var>69.30</var>as lawful gambling purposes under section 
<statute_ref>349.12, subdivision 25</statute_ref>, excluding those <br/>
<a id="pl.69.31"></a><var>69.31</var>purposes relating to the payment of taxes, assessments, fees, auditing costs, and utility <br/>
<a id="pl.69.32"></a><var>69.32</var>payments given in section 349.12, subdivision 7a, except that expenditures for erection or <br/>
<a id="pl.69.33"></a><var>69.33</var>acquisition of a replacement building, as defined under section 349.12, subdivision 25, <br/>
<a id="pl.69.34"></a><var>69.34</var>paragraph (a), clause (25), may be counted to meet up to 50 percent of the contribution <br/>
<a id="pl.69.35"></a><var>69.35</var>requirement, for a period of not more than 20 years from the erection or acquisition of <br/>
<a id="pl.69.36"></a><var>69.36</var>the replacement building;<br/>
<a id="pl.70.1"></a><var>70.1</var>    (B) "property taxes" excludes the state general tax;<br/>
<a id="pl.70.2"></a><var>70.2</var>    (C) a "nonprofit community service oriented organization" means any corporation, <br/>
<a id="pl.70.3"></a><var>70.3</var>society, association, foundation, or institution organized and operated exclusively for <br/>
<a id="pl.70.4"></a><var>70.4</var>charitable, religious, fraternal, civic, or educational purposes, and which is exempt from <br/>
<a id="pl.70.5"></a><var>70.5</var>federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal <br/>
<a id="pl.70.6"></a><var>70.6</var>Revenue Code; and<br/>
<a id="pl.70.7"></a><var>70.7</var>    (D) "revenue-producing activities" shall include but not be limited to property or that <br/>
<a id="pl.70.8"></a><var>70.8</var>portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt <br/>
<a id="pl.70.9"></a><var>70.9</var>liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling <br/>
<a id="pl.70.10"></a><var>70.10</var>alley, a retail store, gambling conducted by organizations licensed under chapter 349, an <br/>
<a id="pl.70.11"></a><var>70.11</var>insurance business, or office or other space leased or rented to a lessee who conducts a <br/>
<a id="pl.70.12"></a><var>70.12</var>for-profit enterprise on the premises.<br/>
<a id="pl.70.13"></a><var>70.13</var>Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use <br/>
<a id="pl.70.14"></a><var>70.14</var>of the property for social events open exclusively to members and their guests for periods <br/>
<a id="pl.70.15"></a><var>70.15</var>of less than 24 hours, when an admission is not charged nor any revenues are received by <br/>
<a id="pl.70.16"></a><var>70.16</var>the organization shall not be considered a revenue-producing activity.<br/>
<a id="pl.70.17"></a><var>70.17</var>    The organization shall maintain records of its charitable contributions and donations <br/>
<a id="pl.70.18"></a><var>70.18</var>and of public meetings and events held on the property and make them available upon <br/>
<a id="pl.70.19"></a><var>70.19</var>request any time to the assessor to ensure eligibility. An organization meeting the <br/>
<a id="pl.70.20"></a><var>70.20</var>requirement under item (ii) must file an application by May 1 with the assessor for <br/>
<a id="pl.70.21"></a><var>70.21</var>eligibility for the current year's assessment. The commissioner shall prescribe a uniform <br/>
<a id="pl.70.22"></a><var>70.22</var>application form and instructions;<br/>
<a id="pl.70.23"></a><var>70.23</var>    (4) postsecondary student housing of not more than one acre of land that is owned by <br/>
<a id="pl.70.24"></a><var>70.24</var>a nonprofit corporation organized under chapter 317A and is used exclusively by a student <br/>
<a id="pl.70.25"></a><var>70.25</var>cooperative, sorority, or fraternity for on-campus housing or housing located within two <br/>
<a id="pl.70.26"></a><var>70.26</var>miles of the border of a college campus;<br/>
<a id="pl.70.27"></a><var>70.27</var>    (5) (i) manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>, <br/>
<a id="pl.70.28"></a><var>70.28</var>excluding manufactured home parks described in section 
         <statute_ref>273.124, subdivision 3a</statute_ref>, and (ii) <br/>
<a id="pl.70.29"></a><var>70.29</var>manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>, that are described in <br/>
<a id="pl.70.30"></a><var>70.30</var>section 
         <statute_ref>273.124, subdivision 3a</statute_ref>;<br/>
<a id="pl.70.31"></a><var>70.31</var>    (6) real property that is actively and exclusively devoted to indoor fitness, health, <br/>
<a id="pl.70.32"></a><var>70.32</var>social, recreational, and related uses, is owned and operated by a not-for-profit corporation, <br/>
<a id="pl.70.33"></a><var>70.33</var>and is located within the metropolitan area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>;<br/>
<a id="pl.70.34"></a><var>70.34</var>    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt <br/>
<a id="pl.70.35"></a><var>70.35</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.71.1"></a><var>71.1</var>    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan <br/>
<a id="pl.71.2"></a><var>71.2</var>Airports Commission, or group thereof; and<br/>
<a id="pl.71.3"></a><var>71.3</var>    (ii) the land lease, or any ordinance or signed agreement restricting the use of the <br/>
<a id="pl.71.4"></a><var>71.4</var>leased premise, prohibits commercial activity performed at the hangar.<br/>
<a id="pl.71.5"></a><var>71.5</var>    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must <br/>
<a id="pl.71.6"></a><var>71.6</var>be filed by the new owner with the assessor of the county where the property is located <br/>
<a id="pl.71.7"></a><var>71.7</var>within 60 days of the sale;<br/>
<a id="pl.71.8"></a><var>71.8</var>    (8) a privately owned noncommercial aircraft storage hangar not exempt under <br/>
<a id="pl.71.9"></a><var>71.9</var>section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that:<br/>
<a id="pl.71.10"></a><var>71.10</var>    (i) the land abuts a public airport; and<br/>
<a id="pl.71.11"></a><var>71.11</var>    (ii) the owner of the aircraft storage hangar provides the assessor with a signed <br/>
<a id="pl.71.12"></a><var>71.12</var>agreement restricting the use of the premises, prohibiting commercial use or activity <br/>
<a id="pl.71.13"></a><var>71.13</var>performed at the hangar; and<br/>
<a id="pl.71.14"></a><var>71.14</var>    (9) residential real estate, a portion of which is used by the owner for homestead <br/>
<a id="pl.71.15"></a><var>71.15</var>purposes, and that is also a place of lodging, if all of the following criteria are met:<br/>
<a id="pl.71.16"></a><var>71.16</var>    (i) rooms are provided for rent to transient guests that generally stay for periods <br/>
<a id="pl.71.17"></a><var>71.17</var>of 14 or fewer days;<br/>
<a id="pl.71.18"></a><var>71.18</var>    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated <br/>
<a id="pl.71.19"></a><var>71.19</var>in the basic room rate;<br/>
<a id="pl.71.20"></a><var>71.20</var>    (iii) meals are not provided to the general public except for special events on fewer <br/>
<a id="pl.71.21"></a><var>71.21</var>than seven days in the calendar year preceding the year of the assessment; and<br/>
<a id="pl.71.22"></a><var>71.22</var>    (iv) the owner is the operator of the property.<br/>
<a id="pl.71.23"></a><var>71.23</var>The market value subject to the 4c classification under this clause is limited to five rental <br/>
<a id="pl.71.24"></a><var>71.24</var>units. Any rental units on the property in excess of five, must be valued and assessed as <br/>
<a id="pl.71.25"></a><var>71.25</var>class 3a. The portion of the property used for purposes of a homestead by the owner must <br/>
<a id="pl.71.26"></a><var>71.26</var>be classified as class 1a property under subdivision 22;<br/>
<a id="pl.71.27"></a><var>71.27</var>    (10) real property up to a maximum of three acres and operated as a restaurant <br/>
<a id="pl.71.28"></a><var>71.28</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.71.29"></a><var>71.29</var>as defined under section 
         <statute_ref>103G.005, subdivision 15</statute_ref>, paragraph (a), clause (3); and (B) <br/>
<a id="pl.71.30"></a><var>71.30</var>is either devoted to commercial purposes for not more than 250 consecutive days, or <br/>
<a id="pl.71.31"></a><var>71.31</var>receives at least 60 percent of its annual gross receipts from business conducted during <br/>
<a id="pl.71.32"></a><var>71.32</var>four consecutive months. Gross receipts from the sale of alcoholic beverages must be <br/>
<a id="pl.71.33"></a><var>71.33</var>included in determining the property's qualification under subitem (B). The property's <br/>
<a id="pl.71.34"></a><var>71.34</var>primary business must be as a restaurant and not as a bar. Gross receipts from gift shop <br/>
<a id="pl.71.35"></a><var>71.35</var>sales located on the premises must be excluded. Owners of real property desiring 4c <br/>
<a id="pl.71.36"></a><var>71.36</var>classification under this clause must submit an annual declaration to the assessor by <br/>
<a id="pl.72.1"></a><var>72.1</var>February 1 of the current assessment year, based on the property's relevant information for <br/>
<a id="pl.72.2"></a><var>72.2</var>the preceding assessment year; and<br/>
<a id="pl.72.3"></a><var>72.3</var>(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used <br/>
<a id="pl.72.4"></a><var>72.4</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.72.5"></a><var>72.5</var>the public and devoted to recreational use for marina services. The marina owner must <br/>
<a id="pl.72.6"></a><var>72.6</var>annually provide evidence to the assessor that it provides services, including lake or river <br/>
<a id="pl.72.7"></a><var>72.7</var>access to the public by means of an access ramp or other facility that is either located on <br/>
<a id="pl.72.8"></a><var>72.8</var>the property of the marina or at a publicly owned site that abuts the property of the marina. <br/>
<a id="pl.72.9"></a><var>72.9</var>No more than 800 feet of lakeshore may be included in this classification. Buildings used <br/>
<a id="pl.72.10"></a><var>72.10</var>in conjunction with a marina for marina services, including but not limited to buildings <br/>
<a id="pl.72.11"></a><var>72.11</var>used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing <br/>
<a id="pl.72.12"></a><var>72.12</var>tackle, are classified as class 3a property.<br/>
<a id="pl.72.13"></a><var>72.13</var>    Class 4c property has a class rate of 1.5 percent of market value, except that (i) each <br/>
<a id="pl.72.14"></a><var>72.14</var>parcel of seasonal residential recreational property not used for commercial purposes <br/>
<a id="pl.72.15"></a><var>72.15</var>has the same class rates as class 4bb property, (ii) manufactured home parks assessed <br/>
<a id="pl.72.16"></a><var>72.16</var>under clause (5), item (i), have the same class rate as class 4b property, and the market <br/>
<a id="pl.72.17"></a><var>72.17</var>value of manufactured home parks assessed under clause (5), item (ii), has the same class <br/>
<a id="pl.72.18"></a><var>72.18</var>rate as class 4d property if more than 50 percent of the lots in the park are occupied by <br/>
<a id="pl.72.19"></a><var>72.19</var>shareholders in the cooperative corporation or association and a class rate of one percent if <br/>
<a id="pl.72.20"></a><var>72.20</var>50 percent or less of the lots are so occupied, (iii) commercial-use seasonal residential <br/>
<a id="pl.72.21"></a><var>72.21</var>recreational property and marina recreational land as described in clause (11), has a <br/>
<a id="pl.72.22"></a><var>72.22</var>class rate of one percent for the first $500,000 of market value, and 1.25 percent for the <br/>
<a id="pl.72.23"></a><var>72.23</var>remaining market value, (iv) the market value of property described in clause (4) has a <br/>
<a id="pl.72.24"></a><var>72.24</var>class rate of one percent, (v) the market value of property described in clauses (2), (6), and <br/>
<a id="pl.72.25"></a><var>72.25</var>(10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property <br/>
<a id="pl.72.26"></a><var>72.26</var>in clause (9) qualifying for class 4c property has a class rate of 1.25 percent.<br/>
<a id="pl.72.27"></a><var>72.27</var>    (e) Class 4d property is qualifying low-income rental housing certified to the assessor <br/>
<a id="pl.72.28"></a><var>72.28</var>by the Housing Finance Agency under section 
         <statute_ref>273.128, subdivision 3</statute_ref>. If only a portion <br/>
<a id="pl.72.29"></a><var>72.29</var>of the units in the building qualify as low-income rental housing units as certified under <br/>
<a id="pl.72.30"></a><var>72.30</var>section 
         <statute_ref>273.128, subdivision 3</statute_ref>, only the proportion of qualifying units to the total number <br/>
<a id="pl.72.31"></a><var>72.31</var>of units in the building qualify for class 4d. The remaining portion of the building shall be <br/>
<a id="pl.72.32"></a><var>72.32</var>classified by the assessor based upon its use. Class 4d also includes the same proportion of <br/>
<a id="pl.72.33"></a><var>72.33</var>land as the qualifying low-income rental housing units are to the total units in the building. <br/>
<a id="pl.72.34"></a><var>72.34</var>For all properties qualifying as class 4d, the market value determined by the assessor must <br/>
<a id="pl.72.35"></a><var>72.35</var>be based on the normal approach to value using normal unrestricted rents.<br/>
<a id="pl.72.36"></a><var>72.36</var>    Class 4d property has a class rate of 0.75 percent.<br/>
<a id="pl.73.1"></a><var>73.1</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2011 and <br/>
<a id="pl.73.2"></a><var>73.2</var>thereafter, for taxes payable in 2012 and thereafter.<br/>
<br/>
<a id="bill.4.8.0"></a><a id="pl.73.3"></a><var>73.3</var>    Sec. 8. Minnesota Statutes 2010, section 273.13, subdivision 34, is amended to read:<br/>
<a id="pl.73.4"></a><var>73.4</var>    Subd. 34. <b>Homestead of disabled veteran.</b> (a) All or a portion of the market value <br/>
<a id="pl.73.5"></a><var>73.5</var>of property owned by a veteran or by the veteran and the veteran's spouse qualifying <br/>
<a id="pl.73.6"></a><var>73.6</var>for homestead classification under subdivision 22 or 23 is excluded in determining the <br/>
<a id="pl.73.7"></a><var>73.7</var>property's taxable market value if it serves as the homestead of a military veteran, as <br/>
<a id="pl.73.8"></a><var>73.8</var>defined in section 
         <statute_ref>197.447</statute_ref>, who has a service-connected disability of 70 percent or more. <br/>
<a id="pl.73.9"></a><var>73.9</var>To qualify for exclusion under this subdivision, the veteran must have been honorably <br/>
<a id="pl.73.10"></a><var>73.10</var>discharged from the United States armed forces, as indicated by United States Government <br/>
<a id="pl.73.11"></a><var>73.11</var>Form DD214 or other official military discharge papers, and must be certified by the <br/>
<a id="pl.73.12"></a><var>73.12</var>United States Veterans Administration as having a service-connected disability.<br/>
<a id="pl.73.13"></a><var>73.13</var>    (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is <br/>
<a id="pl.73.14"></a><var>73.14</var>excluded, except as provided in clause (2); and<br/>
<a id="pl.73.15"></a><var>73.15</var>    (2) for a total (100 percent) and permanent disability, $300,000 of market value is <br/>
<a id="pl.73.16"></a><var>73.16</var>excluded.<br/>
<a id="pl.73.17"></a><var>73.17</var>    (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), <br/>
<a id="pl.73.18"></a><var>73.18</var>clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the <br/>
<a id="pl.73.19"></a><var>73.19</var>spouse holds the legal or beneficial title to the homestead and permanently resides there, <br/>
<a id="pl.73.20"></a><var>73.20</var>the exclusion shall carry over to the benefit of the veteran's spouse for one five additional <br/>
<a id="pl.73.21"></a><var>73.21</var>assessment year taxes payable years or until such time as the spouse sells, transfers, <br/>
<a id="pl.73.22"></a><var>73.22</var>remarries, or otherwise disposes of the property, whichever comes first. To qualify for <br/>
<a id="pl.73.23"></a><var>73.23</var>the exemption under this paragraph, the surviving spouse must apply annually to the <br/>
<a id="pl.73.24"></a><var>73.24</var>assessor by July 1 of the assessment year.<br/>
<a id="pl.73.25"></a><var>73.25</var>    (d) In the case of an agricultural homestead, only the portion of the property <br/>
<a id="pl.73.26"></a><var>73.26</var>consisting of the house and garage and immediately surrounding one acre of land qualifies <br/>
<a id="pl.73.27"></a><var>73.27</var>for the valuation exclusion under this subdivision.<br/>
<a id="pl.73.28"></a><var>73.28</var>    (e) A property qualifying for a valuation exclusion under this subdivision is not <br/>
<a id="pl.73.29"></a><var>73.29</var>eligible for the credit under section 
         <statute_ref>273.1384, subdivision 1</statute_ref>, or classification under <br/>
<a id="pl.73.30"></a><var>73.30</var>subdivision 22, paragraph (b).<br/>
<a id="pl.73.31"></a><var>73.31</var>    (f) To qualify for a valuation exclusion under this subdivision a property owner must <br/>
<a id="pl.73.32"></a><var>73.32</var>apply to the assessor by July 1 of each assessment year, except that an annual reapplication <br/>
<a id="pl.73.33"></a><var>73.33</var>is not required once a property has been accepted for a valuation exclusion under paragraph <br/>
<a id="pl.73.34"></a><var>73.34</var>(b), clause (2), and the property continues to qualify until there is a change in ownership.<br/>
<a id="pl.74.1"></a><var>74.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in 2010, payable in <br/>
<a id="pl.74.2"></a><var>74.2</var>2011, and thereafter, and applies to homesteads that initially qualified for the exclusion <br/>
<a id="pl.74.3"></a><var>74.3</var>for taxes payable in 2009 and thereafter.<br/>
<br/>
<a id="bill.4.9.0"></a><a id="pl.74.4"></a><var>74.4</var>    Sec. 9. Minnesota Statutes 2010, section 274.01, subdivision 1, is amended to read:<br/>
<a id="pl.74.5"></a><var>74.5</var>    Subdivision 1. <b>Ordinary board; meetings, deadlines, grievances.</b> (a) The town <br/>
<a id="pl.74.6"></a><var>74.6</var>board of a town, or the council or other governing body of a city, is the board of appeal <br/>
<a id="pl.74.7"></a><var>74.7</var>and equalization except (1) in cities whose charters provide for a board of equalization or <br/>
<a id="pl.74.8"></a><var>74.8</var>(2) in any city or town that has transferred its local board of review power and duties to <br/>
<a id="pl.74.9"></a><var>74.9</var>the county board as provided in subdivision 3. The county assessor shall fix a day and <br/>
<a id="pl.74.10"></a><var>74.10</var>time when the board or the board of equalization shall meet in the assessment districts <br/>
<a id="pl.74.11"></a><var>74.11</var>of the county. Notwithstanding any law or city charter to the contrary, a city board of <br/>
<a id="pl.74.12"></a><var>74.12</var>equalization shall be referred to as a board of appeal and equalization. On or before <br/>
<a id="pl.74.13"></a><var>74.13</var>February 15 of each year the assessor shall give written notice of the time to the city or <br/>
<a id="pl.74.14"></a><var>74.14</var>town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings <br/>
<a id="pl.74.15"></a><var>74.15</var>must be held between April 1 and May 31 each year, provided that the board may review <br/>
<a id="pl.74.16"></a><var>74.16</var>appeals of denials of green acres treatment as provided in paragraph (h) at any time. <br/>
<a id="pl.74.17"></a><var>74.17</var>The clerk shall give published and posted notice of the meeting at least ten days before <br/>
<a id="pl.74.18"></a><var>74.18</var>the date of the meeting.<br/>
<a id="pl.74.19"></a><var>74.19</var>    The board shall meet at the office of the clerk to review the assessment and <br/>
<a id="pl.74.20"></a><var>74.20</var>classification of property in the town or city. No changes in valuation or classification <br/>
<a id="pl.74.21"></a><var>74.21</var>which are intended to correct errors in judgment by the county assessor may be made by <br/>
<a id="pl.74.22"></a><var>74.22</var>the county assessor after the board has adjourned in those cities or towns that hold a <br/>
<a id="pl.74.23"></a><var>74.23</var>local board of review; however, corrections of errors that are merely clerical in nature or <br/>
<a id="pl.74.24"></a><var>74.24</var>changes that extend homestead treatment to property are permitted after adjournment until <br/>
<a id="pl.74.25"></a><var>74.25</var>the tax extension date for that assessment year. The changes must be fully documented and <br/>
<a id="pl.74.26"></a><var>74.26</var>maintained in the assessor's office and must be available for review by any person. A copy <br/>
<a id="pl.74.27"></a><var>74.27</var>of the changes made during this period in those cities or towns that hold a local board of <br/>
<a id="pl.74.28"></a><var>74.28</var>review must be sent to the county board no later than December 31 of the assessment year.<br/>
<a id="pl.74.29"></a><var>74.29</var>    (b) The board shall determine whether the taxable property in the town or city has <br/>
<a id="pl.74.30"></a><var>74.30</var>been properly placed on the list and properly valued by the assessor. If real or personal <br/>
<a id="pl.74.31"></a><var>74.31</var>property has been omitted, the board shall place it on the list with its market value, and <br/>
<a id="pl.74.32"></a><var>74.32</var>correct the assessment so that each tract or lot of real property, and each article, parcel, <br/>
<a id="pl.74.33"></a><var>74.33</var>or class of personal property, is entered on the assessment list at its market value. No <br/>
<a id="pl.74.34"></a><var>74.34</var>assessment of the property of any person may be raised unless the person has been <br/>
<a id="pl.74.35"></a><var>74.35</var>duly notified of the intent of the board to do so. On application of any person feeling <br/>
<a id="pl.75.1"></a><var>75.1</var>aggrieved, the board shall review the assessment or classification, or both, and correct <br/>
<a id="pl.75.2"></a><var>75.2</var>it as appears just. The board may not make an individual market value adjustment or <br/>
<a id="pl.75.3"></a><var>75.3</var>classification change that would benefit the property if the owner or other person having <br/>
<a id="pl.75.4"></a><var>75.4</var>control over the property has refused the assessor access to inspect the property and the <br/>
<a id="pl.75.5"></a><var>75.5</var>interior of any buildings or structures as provided in section 
         <statute_ref>273.20</statute_ref>. A board member <br/>
<a id="pl.75.6"></a><var>75.6</var>shall not participate in any actions of the board which result in market value adjustments <br/>
<a id="pl.75.7"></a><var>75.7</var>or classification changes to property owned by the board member, the spouse, parent, <br/>
<a id="pl.75.8"></a><var>75.8</var>stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, <br/>
<a id="pl.75.9"></a><var>75.9</var>or niece of a board member, or property in which a board member has a financial interest. <br/>
<a id="pl.75.10"></a><var>75.10</var>The relationship may be by blood or marriage.<br/>
<a id="pl.75.11"></a><var>75.11</var>    (c) A local board may reduce assessments upon petition of the taxpayer but the total <br/>
<a id="pl.75.12"></a><var>75.12</var>reductions must not reduce the aggregate assessment made by the county assessor by more <br/>
<a id="pl.75.13"></a><var>75.13</var>than one percent. If the total reductions would lower the aggregate assessments made by <br/>
<a id="pl.75.14"></a><var>75.14</var>the county assessor by more than one percent, none of the adjustments may be made. The <br/>
<a id="pl.75.15"></a><var>75.15</var>assessor shall correct any clerical errors or double assessments discovered by the board <br/>
<a id="pl.75.16"></a><var>75.16</var>without regard to the one percent limitation.<br/>
<a id="pl.75.17"></a><var>75.17</var>    (d) A local board does not have authority to grant an exemption or to order property <br/>
<a id="pl.75.18"></a><var>75.18</var>removed from the tax rolls.<br/>
<a id="pl.75.19"></a><var>75.19</var>    (e) A majority of the members may act at the meeting, and adjourn from day to day <br/>
<a id="pl.75.20"></a><var>75.20</var>until they finish hearing the cases presented. The assessor shall attend, with the assessment <br/>
<a id="pl.75.21"></a><var>75.21</var>books and papers, and take part in the proceedings, but must not vote. The county assessor, <br/>
<a id="pl.75.22"></a><var>75.22</var>or an assistant delegated by the county assessor shall attend the meetings. The board shall <br/>
<a id="pl.75.23"></a><var>75.23</var>list separately, on a form appended to the assessment book, all omitted property added <br/>
<a id="pl.75.24"></a><var>75.24</var>to the list by the board and all items of property increased or decreased, with the market <br/>
<a id="pl.75.25"></a><var>75.25</var>value of each item of property, added or changed by the board, placed opposite the item. <br/>
<a id="pl.75.26"></a><var>75.26</var>The county assessor shall enter all changes made by the board in the assessment book.<br/>
<a id="pl.75.27"></a><var>75.27</var>    (f) Except as provided in subdivision 3, if a person fails to appear in person, by <br/>
<a id="pl.75.28"></a><var>75.28</var>counsel, or by written communication before the board after being duly notified of the <br/>
<a id="pl.75.29"></a><var>75.29</var>board's intent to raise the assessment of the property, or if a person feeling aggrieved by an <br/>
<a id="pl.75.30"></a><var>75.30</var>assessment or classification fails to apply for a review of the assessment or classification, <br/>
<a id="pl.75.31"></a><var>75.31</var>the person may not appear before the county board of appeal and equalization for a review <br/>
<a id="pl.75.32"></a><var>75.32</var>of the assessment or classification. This paragraph does not apply if an assessment was <br/>
<a id="pl.75.33"></a><var>75.33</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.75.34"></a><var>75.34</var>establish not having received notice of market value at least five days before the local <br/>
<a id="pl.75.35"></a><var>75.35</var>board meeting.<br/>
<a id="pl.76.1"></a><var>76.1</var>    (g) The local board must complete its work and adjourn within 20 days from the <br/>
<a id="pl.76.2"></a><var>76.2</var>time of convening stated in the notice of the clerk, unless a longer period is approved by <br/>
<a id="pl.76.3"></a><var>76.3</var>the commissioner of revenue. No action taken after that date is valid. All complaints <br/>
<a id="pl.76.4"></a><var>76.4</var>about an assessment or classification made after the meeting of the board must be heard <br/>
<a id="pl.76.5"></a><var>76.5</var>and determined by the county board of equalization. A nonresident may, at any time, <br/>
<a id="pl.76.6"></a><var>76.6</var>before the meeting of the board file written objections to an assessment or classification <br/>
<a id="pl.76.7"></a><var>76.7</var>with the county assessor. The objections must be presented to the board at its meeting by <br/>
<a id="pl.76.8"></a><var>76.8</var>the county assessor for its consideration.<br/>
<a id="pl.76.9"></a><var>76.9</var>(h) The local board may, but is not required to, review appeals from property owners <br/>
<a id="pl.76.10"></a><var>76.10</var>of denials by assessors of applications for valuation under section 273.111. If it intends <br/>
<a id="pl.76.11"></a><var>76.11</var>to exercise the authority provided in this paragraph, the board must pass a resolution <br/>
<a id="pl.76.12"></a><var>76.12</var>stating that it will do so, and must then review all such appeals until it passes a subsequent <br/>
<a id="pl.76.13"></a><var>76.13</var>resolution stating that it will not review such appeals.<br/>
<a id="pl.76.14"></a><var>76.14</var><b>EFFECTIVE DATE.</b>This section is effective for appeals denied after June 30, <br/>
<a id="pl.76.15"></a><var>76.15</var>2011.<br/>
<br/>
<a id="bill.4.10.0"></a><a id="pl.76.16"></a><var>76.16</var>    Sec. 10. Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read:<br/>
<a id="pl.76.17"></a><var>76.17</var>    Subdivision 1. <b>Levy amount.</b> The state general levy is levied against <br/>
<a id="pl.76.18"></a><var>76.18</var>commercial-industrial property and seasonal residential recreational property, as defined <br/>
<a id="pl.76.19"></a><var>76.19</var>in this section. The state general levy base amount for commercial-industrial property <br/>
<a id="pl.76.20"></a><var>76.20</var>is $592,000,000 $702,700,000 and the state general levy base amount for seasonal <br/>
<a id="pl.76.21"></a><var>76.21</var>residential recreational property is $39,800,000 for taxes payable in 2002 2012 and 2013. <br/>
<a id="pl.76.22"></a><var>76.22</var>For taxes payable in subsequent years, the levy base amount is increased each year by <br/>
<a id="pl.76.23"></a><var>76.23</var>multiplying the levy base amount for the prior year by the sum of one plus the rate of <br/>
<a id="pl.76.24"></a><var>76.24</var>increase, if any, in the implicit price deflator for government consumption expenditures <br/>
<a id="pl.76.25"></a><var>76.25</var>and gross investment for state and local governments prepared by the Bureau of Economic <br/>
<a id="pl.76.26"></a><var>76.26</var>Analysts of the United States Department of Commerce for the 12-month period ending <br/>
<a id="pl.76.27"></a><var>76.27</var>March 31 of the year prior to the year the taxes are payable decreased as follows: <br/>
<a id="pl.76.28"></a><var>76.28</var>(1) for taxes payable in 2014, the state general levy base amount is $667,600,000 <br/>
<a id="pl.76.29"></a><var>76.29</var>for commercial-industrial property and $37,800,000 for seasonal residential recreational <br/>
<a id="pl.76.30"></a><var>76.30</var>property;<br/>
<a id="pl.76.31"></a><var>76.31</var>(2) for taxes payable in 2015, the state general levy base amount is $632,500,000 <br/>
<a id="pl.76.32"></a><var>76.32</var>for commercial-industrial property and $35,800,000 for seasonal residential recreational <br/>
<a id="pl.76.33"></a><var>76.33</var>property;<br/>
<a id="pl.77.1"></a><var>77.1</var>(3) for taxes payable in 2016, the state general levy base amount is $562,300,000 <br/>
<a id="pl.77.2"></a><var>77.2</var>for commercial-industrial property and $31,800,000 for seasonal residential recreational <br/>
<a id="pl.77.3"></a><var>77.3</var>property;<br/>
<a id="pl.77.4"></a><var>77.4</var>(4) for taxes payable in 2017, the state general levy base amount is $492,100,000 <br/>
<a id="pl.77.5"></a><var>77.5</var>for commercial-industrial property and $27,800,000 for seasonal residential recreational <br/>
<a id="pl.77.6"></a><var>77.6</var>property;<br/>
<a id="pl.77.7"></a><var>77.7</var>(5) for taxes payable in 2018, the state general levy base amount is $421,900,000 <br/>
<a id="pl.77.8"></a><var>77.8</var>for commercial-industrial property and $23,800,000 for seasonal residential recreational <br/>
<a id="pl.77.9"></a><var>77.9</var>property;<br/>
<a id="pl.77.10"></a><var>77.10</var>(6) for taxes payable in 2019, the state general levy base amount is $351,700,000 <br/>
<a id="pl.77.11"></a><var>77.11</var>for commercial-industrial property and $19,800,000 for seasonal residential recreational <br/>
<a id="pl.77.12"></a><var>77.12</var>property;<br/>
<a id="pl.77.13"></a><var>77.13</var>(7) for taxes payable in 2020, the state general levy base amount is $281,500,000 <br/>
<a id="pl.77.14"></a><var>77.14</var>for commercial-industrial property and $15,800,000 for seasonal residential recreational <br/>
<a id="pl.77.15"></a><var>77.15</var>property;<br/>
<a id="pl.77.16"></a><var>77.16</var>(8) for taxes payable in 2021, the state general levy base amount is $211,300,000 <br/>
<a id="pl.77.17"></a><var>77.17</var>for commercial-industrial property and $11,800,000 for seasonal residential recreational <br/>
<a id="pl.77.18"></a><var>77.18</var>property;<br/>
<a id="pl.77.19"></a><var>77.19</var>(9) for taxes payable in 2022, the state general levy base amount is $141,100,000 <br/>
<a id="pl.77.20"></a><var>77.20</var>for commercial-industrial property and $7,800,000 for seasonal residential recreational <br/>
<a id="pl.77.21"></a><var>77.21</var>property; and<br/>
<a id="pl.77.22"></a><var>77.22</var>(10) for taxes payable in 2023, the state general levy base amount is $70,900,000 <br/>
<a id="pl.77.23"></a><var>77.23</var>for commercial-industrial property and $3,800,000 for seasonal residential recreational <br/>
<a id="pl.77.24"></a><var>77.24</var>property.<br/>
<a id="pl.77.25"></a><var>77.25</var>The tax under this section is not treated as a local tax rate under section 
         <statute_ref>469.177</statute_ref> and <br/>
<a id="pl.77.26"></a><var>77.26</var>is not the levy of a governmental unit under chapters 276A and 473F.<br/>
<a id="pl.77.27"></a><var>77.27</var>The commissioner shall increase or decrease the preliminary or final rate for a year <br/>
<a id="pl.77.28"></a><var>77.28</var>as necessary to account for errors and tax base changes that affected a preliminary or final <br/>
<a id="pl.77.29"></a><var>77.29</var>rate for either of the two preceding years. Adjustments are allowed to the extent that the <br/>
<a id="pl.77.30"></a><var>77.30</var>necessary information is available to the commissioner at the time the rates for a year must <br/>
<a id="pl.77.31"></a><var>77.31</var>be certified, and for the following reasons:<br/>
<a id="pl.77.32"></a><var>77.32</var>(1) an erroneous report of taxable value by a local official;<br/>
<a id="pl.77.33"></a><var>77.33</var>(2) an erroneous calculation by the commissioner; and<br/>
<a id="pl.77.34"></a><var>77.34</var>(3) an increase or decrease in taxable value for commercial-industrial or seasonal <br/>
<a id="pl.77.35"></a><var>77.35</var>residential recreational property reported on the abstracts of tax lists submitted under <br/>
<a id="pl.78.1"></a><var>78.1</var>section 
         <statute_ref>275.29</statute_ref> that was not reported on the abstracts of assessment submitted under <br/>
<a id="pl.78.2"></a><var>78.2</var>section 
         <statute_ref>270C.89</statute_ref> for the same year.<br/>
<a id="pl.78.3"></a><var>78.3</var>The commissioner may, but need not, make adjustments if the total difference in the tax <br/>
<a id="pl.78.4"></a><var>78.4</var>levied for the year would be less than $100,000.<br/>
<br/>
<a id="bill.4.11.0"></a><a id="pl.78.5"></a><var>78.5</var>    Sec. 11. Minnesota Statutes 2010, section 275.025, subdivision 4, is amended to read:<br/>
<a id="pl.78.6"></a><var>78.6</var>    Subd. 4. <b>Apportionment and levy of state general tax.</b> Ninety-five percent of the <br/>
<a id="pl.78.7"></a><var>78.7</var>state general tax must be levied by applying a uniform rate to all commercial-industrial tax <br/>
<a id="pl.78.8"></a><var>78.8</var>capacity and five percent of the state general tax must be levied by applying a uniform <br/>
<a id="pl.78.9"></a><var>78.9</var>rate to all seasonal residential recreational tax capacity. On or before October 1 each year, <br/>
<a id="pl.78.10"></a><var>78.10</var>the commissioner of revenue shall certify the preliminary state general levy rates to each <br/>
<a id="pl.78.11"></a><var>78.11</var>county auditor that must be used to prepare the notices of proposed property taxes for taxes <br/>
<a id="pl.78.12"></a><var>78.12</var>payable in the following year. By January 1 of each year, the commissioner shall certify <br/>
<a id="pl.78.13"></a><var>78.13</var>the final state general levy rate to each county auditor that shall be used in spreading taxes.<br/>
<a id="pl.78.14"></a><var>78.14</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in 2011, payable <br/>
<a id="pl.78.15"></a><var>78.15</var>in 2012, and thereafter.<br/>
<br/>
<a id="bill.4.12.0"></a><a id="pl.78.16"></a><var>78.16</var>    Sec. 12. <b> REPEALER.</b><br/>
<a id="pl.78.17"></a><var>78.17</var>(a) Minnesota Statutes 2010, section 273.114, subdivision 1, is repealed.<br/>
<a id="pl.78.18"></a><var>78.18</var>(b) Minnesota Statutes 2010, section 275.025, is repealed.<br/>
<a id="pl.78.19"></a><var>78.19</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective the day following final enactment. <br/>
<a id="pl.78.20"></a><var>78.20</var>Paragraph (b) is effective for taxes levied in 2023, payable in 2024, and thereafter.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="bill.5.1.0"></a><a id="pl.78.23"></a><var>78.23</var>    Section 1. Minnesota Statutes 2010, section 469.176, subdivision 4c, is amended to <br/>
<a id="pl.78.24"></a><var>78.24</var>read:<br/>
<a id="pl.78.25"></a><var>78.25</var>    Subd. 4c. <b>Economic development districts.</b> (a) Revenue derived from tax <br/>
<a id="pl.78.26"></a><var>78.26</var>increment from an economic development district may not be used to provide <br/>
<a id="pl.78.27"></a><var>78.27</var>improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form <br/>
<a id="pl.78.28"></a><var>78.28</var>to developments consisting of buildings and ancillary facilities, if more than 15 percent <br/>
<a id="pl.78.29"></a><var>78.29</var>of the buildings and facilities (determined on the basis of square footage) are used for a <br/>
<a id="pl.78.30"></a><var>78.30</var>purpose other than:<br/>
<a id="pl.79.1"></a><var>79.1</var>(1) the manufacturing or production of tangible personal property, including <br/>
<a id="pl.79.2"></a><var>79.2</var>processing resulting in the change in condition of the property;<br/>
<a id="pl.79.3"></a><var>79.3</var>(2) warehousing, storage, and distribution of tangible personal property, excluding <br/>
<a id="pl.79.4"></a><var>79.4</var>retail sales;<br/>
<a id="pl.79.5"></a><var>79.5</var>(3) research and development related to the activities listed in clause (1) or (2);<br/>
<a id="pl.79.6"></a><var>79.6</var>(4) telemarketing if that activity is the exclusive use of the property;<br/>
<a id="pl.79.7"></a><var>79.7</var>(5) tourism facilities;<br/>
<a id="pl.79.8"></a><var>79.8</var>(6) qualified border retail facilities; or<br/>
<a id="pl.79.9"></a><var>79.9</var>(7) space necessary for and related to the activities listed in clauses (1) to (6).<br/>
<a id="pl.79.10"></a><var>79.10</var>(b) Notwithstanding the provisions of this subdivision, revenues derived from tax <br/>
<a id="pl.79.11"></a><var>79.11</var>increment from an economic development district may be used to provide improvements, <br/>
<a id="pl.79.12"></a><var>79.12</var>loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000 <br/>
<a id="pl.79.13"></a><var>79.13</var>square feet of any separately owned commercial facility located within the municipal <br/>
<a id="pl.79.14"></a><var>79.14</var>jurisdiction of a small city, if the revenues derived from increments are spent only to <br/>
<a id="pl.79.15"></a><var>79.15</var>assist the facility directly or for administrative expenses, the assistance is necessary to <br/>
<a id="pl.79.16"></a><var>79.16</var>develop the facility, and all of the increments, except those for administrative expenses, <br/>
<a id="pl.79.17"></a><var>79.17</var>are spent only for activities within the district.<br/>
<a id="pl.79.18"></a><var>79.18</var>(c) A city is a small city for purposes of this subdivision if the city was a small city <br/>
<a id="pl.79.19"></a><var>79.19</var>in the year in which the request for certification was made and applies for the rest of <br/>
<a id="pl.79.20"></a><var>79.20</var>the duration of the district, regardless of whether the city qualifies or ceases to qualify <br/>
<a id="pl.79.21"></a><var>79.21</var>as a small city.<br/>
<a id="pl.79.22"></a><var>79.22</var>(d) Notwithstanding the requirements of paragraph (a) and the finding requirements <br/>
<a id="pl.79.23"></a><var>79.23</var>of section 
         <statute_ref>469.174, subdivision 12</statute_ref>, tax increments from an economic development district <br/>
<a id="pl.79.24"></a><var>79.24</var>may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or <br/>
<a id="pl.79.25"></a><var>79.25</var>assistance in any form to developments consisting of buildings and ancillary facilities, if <br/>
<a id="pl.79.26"></a><var>79.26</var>all the following conditions are met:<br/>
<a id="pl.79.27"></a><var>79.27</var>(1) the municipality finds that the project will create or retain jobs in this state, <br/>
<a id="pl.79.28"></a><var>79.28</var>including construction jobs, and that construction of the project would not have <br/>
<a id="pl.79.29"></a><var>79.29</var>commenced before July 1, 2011 2012, without the authority providing assistance under <br/>
<a id="pl.79.30"></a><var>79.30</var>the provisions of this paragraph;<br/>
<a id="pl.79.31"></a><var>79.31</var>(2) construction of the project begins no later than July 1, 2011 2012; and<br/>
<a id="pl.79.32"></a><var>79.32</var>(3) the request for certification of the district is made no later than June 30, 2011 <br/>
<a id="pl.79.33"></a><var>79.33</var>2012; and<br/>
<a id="pl.79.34"></a><var>79.34</var>(4) for development of housing under this paragraph, the construction must begin <br/>
<a id="pl.79.35"></a><var>79.35</var>before July 1, 2011.<br/>
<a id="pl.79.36"></a><var>79.36</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.80.1"></a><var>80.1</var>    Sec. 2. Minnesota Statutes 2010, section 469.176, subdivision 4m, is amended to read:<br/>
<a id="pl.80.2"></a><var>80.2</var>    Subd. 4m. <b>Temporary authority to stimulate construction.</b> (a) Notwithstanding <br/>
<a id="pl.80.3"></a><var>80.3</var>the restrictions in any other subdivision of this section or any other law to the contrary, <br/>
<a id="pl.80.4"></a><var>80.4</var>except the requirement to pay bonds to which the increments are pledged and the <br/>
<a id="pl.80.5"></a><var>80.5</var>provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or <br/>
<a id="pl.80.6"></a><var>80.6</var>more of the following purposes:<br/>
<a id="pl.80.7"></a><var>80.7</var>(1) to provide improvements, loans, interest rate subsidies, or assistance in any <br/>
<a id="pl.80.8"></a><var>80.8</var>form to private development consisting of the construction or substantial rehabilitation <br/>
<a id="pl.80.9"></a><var>80.9</var>of buildings and ancillary facilities, if doing so will create or retain jobs in this state, <br/>
<a id="pl.80.10"></a><var>80.10</var>including construction jobs, and that the construction commences before July 1, 2011 <br/>
<a id="pl.80.11"></a><var>80.11</var>2012, and would not have commenced before that date without the assistance; or<br/>
<a id="pl.80.12"></a><var>80.12</var>(2) to make an equity or similar investment in a corporation, partnership, or limited <br/>
<a id="pl.80.13"></a><var>80.13</var>liability company that the authority determines is necessary to make construction of a <br/>
<a id="pl.80.14"></a><var>80.14</var>development that meets the requirements of clause (1) financially feasible.<br/>
<a id="pl.80.15"></a><var>80.15</var>(b) The authority may undertake actions under the authority of this subdivision only <br/>
<a id="pl.80.16"></a><var>80.16</var>after approval by the municipality of a written spending plan that specifically authorizes <br/>
<a id="pl.80.17"></a><var>80.17</var>the authority to take the actions. The municipality shall approve the spending plan only <br/>
<a id="pl.80.18"></a><var>80.18</var>after a public hearing after published notice in a newspaper of general circulation in <br/>
<a id="pl.80.19"></a><var>80.19</var>the municipality at least once, not less than ten days nor more than 30 days prior to the <br/>
<a id="pl.80.20"></a><var>80.20</var>date of the hearing.<br/>
<a id="pl.80.21"></a><var>80.21</var>(c) The authority to spend tax increments under this subdivision expires December <br/>
<a id="pl.80.22"></a><var>80.22</var>31, 2011 2012.<br/>
<a id="pl.80.23"></a><var>80.23</var>(d) For a development consisting of housing, the authority to spend tax increments <br/>
<a id="pl.80.24"></a><var>80.24</var>under this subdivision expires December 31, 2011, and construction must commence <br/>
<a id="pl.80.25"></a><var>80.25</var>before July 1, 2011.<br/>
<a id="pl.80.26"></a><var>80.26</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.80.27"></a><var>80.27</var>    Sec. 3. Laws 2010, chapter 389, article 7, section 22, is amended to read:<br/>
<a id="pl.80.28"></a><var>80.28</var>    Sec. 22. <b>CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT; </b><br/>
<a id="pl.80.29"></a><var>80.29</var><b>SPECIAL RULES.</b><br/>
<a id="pl.80.30"></a><var>80.30</var>(a) If the city of Ramsey or an authority of the city elects upon the adoption of a tax <br/>
<a id="pl.80.31"></a><var>80.31</var>increment financing plan for a district, the rules under this section apply to a redevelopment <br/>
<a id="pl.80.32"></a><var>80.32</var>tax increment financing district established by the city or an authority of the city. The <br/>
<a id="pl.80.33"></a><var>80.33</var>redevelopment tax increment district includes parcels within the area bounded on the east <br/>
<a id="pl.80.34"></a><var>80.34</var>by Ramsey Boulevard, on the north by Bunker Lake Boulevard as extended west to Llama <br/>
<a id="pl.80.35"></a><var>80.35</var>Street, on the west by Llama Street, and on the south by a line running parallel to and <br/>
<a id="pl.81.1"></a><var>81.1</var>600 feet south of the southerly right-of-way for U.S. Highway 10, but including Parcels <br/>
<a id="pl.81.2"></a><var>81.2</var>28-32-25-43-0007 and 28-32-25-34-0002 in their entirety, and excluding the Anoka <br/>
<a id="pl.81.3"></a><var>81.3</var>County Regional Park property in its entirety. A parcel within this area that is included in <br/>
<a id="pl.81.4"></a><var>81.4</var>a tax increment financing district that was certified before the date of enactment of this act <br/>
<a id="pl.81.5"></a><var>81.5</var>may be included in the district created under this act if the initial district is decertified.<br/>
<a id="pl.81.6"></a><var>81.6</var>(b) The requirements for qualifying a redevelopment tax increment district under <br/>
<a id="pl.81.7"></a><var>81.7</var>Minnesota Statutes, section 
         <statute_ref>469.174, subdivision 10</statute_ref>, do not apply to the parcels located <br/>
<a id="pl.81.8"></a><var>81.8</var>within the district.<br/>
<a id="pl.81.9"></a><var>81.9</var>(c) In addition to the costs permitted by Minnesota Statutes, section 
         <statute_ref>469.176, <br/>
<a id="pl.81.10"></a><var>81.10</var>subdivision 4j
         </statute_ref>, Eligible expenditures within the district include the city's share of the <br/>
<a id="pl.81.11"></a><var>81.11</var>costs necessary to provide for the construction of the Northstar Transit Station and <br/>
<a id="pl.81.12"></a><var>81.12</var>related infrastructure, including structured parking, a pedestrian overpass, and roadway <br/>
<a id="pl.81.13"></a><var>81.13</var>improvements.<br/>
<a id="pl.81.14"></a><var>81.14</var>(d) The requirement of Minnesota Statutes, section 
         <statute_ref>469.1763, subdivision 3</statute_ref>, that <br/>
<a id="pl.81.15"></a><var>81.15</var>activities must be undertaken within a five-year period from the date of certification of a <br/>
<a id="pl.81.16"></a><var>81.16</var>tax increment financing district, is considered to be met for the district if the activities <br/>
<a id="pl.81.17"></a><var>81.17</var>were undertaken within ten years from the date of certification of the district.<br/>
<a id="pl.81.18"></a><var>81.18</var>(e) Except for administrative expenses, the in-district percentage for purposes of <br/>
<a id="pl.81.19"></a><var>81.19</var>the restriction on pooling under Minnesota Statutes, section 
         <statute_ref>469.1763, subdivision 2</statute_ref>, for <br/>
<a id="pl.81.20"></a><var>81.20</var>this district is 100 percent.<br/>
<a id="pl.81.21"></a><var>81.21</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing <br/>
<a id="pl.81.22"></a><var>81.22</var>body of the city of Ramsey, and upon compliance by the city with Minnesota Statutes, <br/>
<a id="pl.81.23"></a><var>81.23</var>section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.81.24"></a><var>81.24</var>    Sec. 4. <b>CITY OF COHASSET; USE OF TAX INCREMENTS.</b><br/>
<a id="pl.81.25"></a><var>81.25</var>The authority operating tax increment financing districts No. 2-1 and No. 3-1 in <br/>
<a id="pl.81.26"></a><var>81.26</var>the city of Cohasset may transfer tax increments from each of those districts to the city <br/>
<a id="pl.81.27"></a><var>81.27</var>in an amount equal to the advances made by the city from its general fund to finance <br/>
<a id="pl.81.28"></a><var>81.28</var>expenditures under Minnesota Statutes, section 469.176, subdivision 4, for the benefit <br/>
<a id="pl.81.29"></a><var>81.29</var>of that district.<br/>
<a id="pl.81.30"></a><var>81.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.81.31"></a><var>81.31</var>upon approval by the governing body of the city of Cohasset and compliance with <br/>
<a id="pl.81.32"></a><var>81.32</var>Minnesota Statutes, section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.81.33"></a><var>81.33</var>    Sec. 5. <b>CITY OF LINO LAKES; TAX INCREMENT FINANCING.</b><br/>
<a id="pl.82.1"></a><var>82.1</var>    Subdivision 1. <b>Duration of district.</b> Notwithstanding the provisions of Minnesota <br/>
<a id="pl.82.2"></a><var>82.2</var>Statutes, section 469.176, subdivision 1b, the city of Lino Lakes may collect tax <br/>
<a id="pl.82.3"></a><var>82.3</var>increments from tax increment financing district No. 1-10 through December 31, 2023, <br/>
<a id="pl.82.4"></a><var>82.4</var>subject to the conditions in subdivision 2.<br/>
<a id="pl.82.5"></a><var>82.5</var>    Subd. 2. <b>Conditions for extension.</b> All tax increments remaining in the account <br/>
<a id="pl.82.6"></a><var>82.6</var>for the district after February 1, 2011, and all tax increments collected thereafter, must <br/>
<a id="pl.82.7"></a><var>82.7</var>be used only to pay debt service on bonds issued to finance the interchange of Anoka <br/>
<a id="pl.82.8"></a><var>82.8</var>County Highway 23 and marked Interstate Highway 35W, bonds issued to finance public <br/>
<a id="pl.82.9"></a><var>82.9</var>improvements serving the development known as Legacy at Woods Edge, and any bonds <br/>
<a id="pl.82.10"></a><var>82.10</var>issued to refund those bonds. Minnesota Statutes, sections 469.176, subdivision 4c, and <br/>
<a id="pl.82.11"></a><var>82.11</var>469.1763 do not apply to expenditures made under this section.<br/>
<a id="pl.82.12"></a><var>82.12</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.82.13"></a><var>82.13</var>body of the city of Lino Lakes with the requirements of Minnesota Statutes, sections <br/>
<a id="pl.82.14"></a><var>82.14</var>469.1782, subdivision 2, and 645.021, subdivision 3.<br/>
<br/>
<a id="bill.6.0.0"></a>

<a id="bill.6.1.0"></a><a id="pl.82.17"></a><var>82.17</var>    Section 1. Minnesota Statutes 2010, section 290.05, subdivision 1, is amended to read:<br/>
<a id="pl.82.18"></a><var>82.18</var>    Subdivision 1. <b>Exempt entities.</b> The following corporations, individuals, estates, <br/>
<a id="pl.82.19"></a><var>82.19</var>trusts, and organizations shall be exempted from taxation under this chapter, provided <br/>
<a id="pl.82.20"></a><var>82.20</var>that every such person or corporation claiming exemption under this chapter, in whole <br/>
<a id="pl.82.21"></a><var>82.21</var>or in part, must establish to the satisfaction of the commissioner the taxable status of <br/>
<a id="pl.82.22"></a><var>82.22</var>any income or activity:<br/>
<a id="pl.82.23"></a><var>82.23</var>(a) corporations, individuals, estates, and trusts engaged in the business of mining or <br/>
<a id="pl.82.24"></a><var>82.24</var>producing iron ore and mining, producing, or refining other ores, metals, and minerals, <br/>
<a id="pl.82.25"></a><var>82.25</var>the mining or, production, or refining of which is subject to the occupation tax imposed <br/>
<a id="pl.82.26"></a><var>82.26</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.82.27"></a><var>82.27</var>other business or activity or has income from any property not used in such business it <br/>
<a id="pl.82.28"></a><var>82.28</var>shall be subject to this tax computed on the net income from such property or such other <br/>
<a id="pl.82.29"></a><var>82.29</var>business or activity. Royalty shall not be considered as income from the business of <br/>
<a id="pl.82.30"></a><var>82.30</var>mining or producing iron ore within the meaning of this section;<br/>
<a id="pl.82.31"></a><var>82.31</var>(b) the United States of America, the state of Minnesota or any political subdivision <br/>
<a id="pl.82.32"></a><var>82.32</var>of either agencies or instrumentalities, whether engaged in the discharge of governmental <br/>
<a id="pl.82.33"></a><var>82.33</var>or proprietary functions; and<br/>
<a id="pl.82.34"></a><var>82.34</var>(c) any insurance company.<br/>
<a id="pl.83.1"></a><var>83.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.83.2"></a><var>83.2</var>December 31, 2010.<br/>
<br/>
<a id="bill.6.2.0"></a><a id="pl.83.3"></a><var>83.3</var>    Sec. 2. Minnesota Statutes 2010, section 297A.68, subdivision 4, is amended to read:<br/>
<a id="pl.83.4"></a><var>83.4</var>    Subd. 4. <b>Taconite</b><b>, other ores, metals, or minerals;</b><b> production materials.</b> Mill <br/>
<a id="pl.83.5"></a><var>83.5</var>liners, grinding rods, and grinding balls that are substantially consumed in the production <br/>
<a id="pl.83.6"></a><var>83.6</var>of taconite or other ores, metals, or minerals are exempt when sold to or stored, used, or <br/>
<a id="pl.83.7"></a><var>83.7</var>consumed by persons taxed under the in-lieu or net proceeds provisions of chapter 298.<br/>
<a id="pl.83.8"></a><var>83.8</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.83.9"></a><var>83.9</var>June 30, 2011. <br/>
<br/>
<a id="bill.6.3.0"></a><a id="pl.83.10"></a><var>83.10</var>    Sec. 3. Minnesota Statutes 2010, section 298.001, is amended by adding a subdivision <br/>
<a id="pl.83.11"></a><var>83.11</var>to read:<br/>
<a id="pl.83.12"></a><var>83.12</var>    Subd. 10. <b>Refining.</b> "Refining" means and is limited to refining:<br/>
<a id="pl.83.13"></a><var>83.13</var>(1) of ores, metals, or mineral products, the mining, extraction, or quarrying of <br/>
<a id="pl.83.14"></a><var>83.14</var>which were subject to tax under section 298.015; and<br/>
<a id="pl.83.15"></a><var>83.15</var>(2) carried out by the entity, or an affiliated entity, that mined, extracted, or quarried <br/>
<a id="pl.83.16"></a><var>83.16</var>the metal or mineral products.<br/>
<a id="pl.83.17"></a><var>83.17</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.83.18"></a><var>83.18</var>December 31, 2010.<br/>
<br/>
<a id="bill.6.4.0"></a><a id="pl.83.19"></a><var>83.19</var>    Sec. 4. Minnesota Statutes 2010, section 298.01, subdivision 3, is amended to read:<br/>
<a id="pl.83.20"></a><var>83.20</var>    Subd. 3. <b>Occupation tax; other ores.</b>  Every person engaged in the business of <br/>
<a id="pl.83.21"></a><var>83.21</var>mining, refining, or producing ores, metals, or minerals in this state, except iron ore or <br/>
<a id="pl.83.22"></a><var>83.22</var>taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided <br/>
<a id="pl.83.23"></a><var>83.23</var>in this subdivision. For purposes of this subdivision, mining includes the application <br/>
<a id="pl.83.24"></a><var>83.24</var>of hydrometallurgical processes. The tax is determined in the same manner as the tax <br/>
<a id="pl.83.25"></a><var>83.25</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.83.26"></a><var>83.26</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.83.27"></a><var>83.27</var>be computed by applying to taxable income the rate of 2.45 percent. A person subject <br/>
<a id="pl.83.28"></a><var>83.28</var>to occupation tax under this section shall apportion its net income on the basis of the <br/>
<a id="pl.83.29"></a><var>83.29</var>percentage obtained by taking the sum of:<br/>
<a id="pl.83.30"></a><var>83.30</var>(1) 75 percent of the percentage which the sales made within this state in connection <br/>
<a id="pl.83.31"></a><var>83.31</var>with the trade or business during the tax period are of the total sales wherever made in <br/>
<a id="pl.83.32"></a><var>83.32</var>connection with the trade or business during the tax period;<br/>
<a id="pl.84.1"></a><var>84.1</var>(2) 12.5 percent of the percentage which the total tangible property used by the <br/>
<a id="pl.84.2"></a><var>84.2</var>taxpayer in this state in connection with the trade or business during the tax period is of <br/>
<a id="pl.84.3"></a><var>84.3</var>the total tangible property, wherever located, used by the taxpayer in connection with the <br/>
<a id="pl.84.4"></a><var>84.4</var>trade or business during the tax period; and<br/>
<a id="pl.84.5"></a><var>84.5</var>(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred <br/>
<a id="pl.84.6"></a><var>84.6</var>in this state or paid in respect to labor performed in this state in connection with the trade <br/>
<a id="pl.84.7"></a><var>84.7</var>or business during the tax period are of the taxpayer's total payrolls paid or incurred in <br/>
<a id="pl.84.8"></a><var>84.8</var>connection with the trade or business during the tax period.<br/>
<a id="pl.84.9"></a><var>84.9</var>The tax is in addition to all other taxes.<br/>
<a id="pl.84.10"></a><var>84.10</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.84.11"></a><var>84.11</var>December 31, 2010.<br/>
<br/>
<a id="bill.6.5.0"></a><a id="pl.84.12"></a><var>84.12</var>    Sec. 5. Minnesota Statutes 2010, section 298.01, subdivision 3a, is amended to read:<br/>
<a id="pl.84.13"></a><var>84.13</var>    Subd. 3a. <b>Gross income.</b> (a) For purposes of determining a person's taxable income <br/>
<a id="pl.84.14"></a><var>84.14</var>under subdivision 3, gross income is determined by the amount of gross proceeds from <br/>
<a id="pl.84.15"></a><var>84.15</var>mining in this state under section 
         <statute_ref>298.016</statute_ref> and includes any gain or loss recognized <br/>
<a id="pl.84.16"></a><var>84.16</var>from the sale or disposition of assets used in the business in this state. If more than one <br/>
<a id="pl.84.17"></a><var>84.17</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.84.18"></a><var>84.18</var>processed at the same mine and plant, a gross income for each ore, mineral, or metal, or <br/>
<a id="pl.84.19"></a><var>84.19</var>energy resource must be determined separately. The gross incomes may be combined on <br/>
<a id="pl.84.20"></a><var>84.20</var>one occupation tax return to arrive at the gross income of all production.<br/>
<a id="pl.84.21"></a><var>84.21</var>(b) In applying section 
         <statute_ref>290.191, subdivision 5</statute_ref>, transfers of ores, metals, or minerals <br/>
<a id="pl.84.22"></a><var>84.22</var>that are subject to tax under this chapter are deemed to be sales in this state.<br/>
<a id="pl.84.23"></a><var>84.23</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.84.24"></a><var>84.24</var>December 31, 2010.<br/>
<br/>
<a id="bill.6.6.0"></a><a id="pl.84.25"></a><var>84.25</var>    Sec. 6. Minnesota Statutes 2010, section 298.01, subdivision 4, is amended to read:<br/>
<a id="pl.84.26"></a><var>84.26</var>    Subd. 4. <b>Occupation tax; iron ore; taconite concentrates.</b> (a) A person engaged in <br/>
<a id="pl.84.27"></a><var>84.27</var>the business of mining or producing of iron ore, taconite concentrates or direct reduced ore <br/>
<a id="pl.84.28"></a><var>84.28</var>in this state shall pay an occupation tax to the state of Minnesota. The tax is determined <br/>
<a id="pl.84.29"></a><var>84.29</var>in the same manner as the tax imposed by section 
         <statute_ref>290.02</statute_ref>, except that sections 
         <statute_ref>290.05, <br/>
<a id="pl.84.30"></a><var>84.30</var>subdivision 1
         </statute_ref>, clause (a), 
         <statute_ref>290.17, subdivision 4</statute_ref>, and 
         <statute_ref>290.191, subdivision 2</statute_ref>, do not apply, <br/>
<a id="pl.84.31"></a><var>84.31</var>and the occupation tax shall be computed by applying to taxable income the rate of 
<statute_ref>2.45</statute_ref> <br/>
<a id="pl.84.32"></a><var>84.32</var>percent set in paragraph (b). A person subject to occupation tax under this section shall <br/>
<a id="pl.84.33"></a><var>84.33</var>apportion its net income on the basis of the percentage obtained by taking the sum of:<br/>
<a id="pl.85.1"></a><var>85.1</var>(1) 75 percent of the percentage which the sales made within this state in connection <br/>
<a id="pl.85.2"></a><var>85.2</var>with the trade or business during the tax period are of the total sales wherever made in <br/>
<a id="pl.85.3"></a><var>85.3</var>connection with the trade or business during the tax period;<br/>
<a id="pl.85.4"></a><var>85.4</var>(2) 12.5 percent of the percentage which the total tangible property used by the <br/>
<a id="pl.85.5"></a><var>85.5</var>taxpayer in this state in connection with the trade or business during the tax period is of <br/>
<a id="pl.85.6"></a><var>85.6</var>the total tangible property, wherever located, used by the taxpayer in connection with the <br/>
<a id="pl.85.7"></a><var>85.7</var>trade or business during the tax period; and<br/>
<a id="pl.85.8"></a><var>85.8</var>(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred <br/>
<a id="pl.85.9"></a><var>85.9</var>in this state or paid in respect to labor performed in this state in connection with the trade <br/>
<a id="pl.85.10"></a><var>85.10</var>or business during the tax period are of the taxpayer's total payrolls paid or incurred in <br/>
<a id="pl.85.11"></a><var>85.11</var>connection with the trade or business during the tax period.<br/>
<a id="pl.85.12"></a><var>85.12</var>The tax is in addition to all other taxes.<br/>
<a id="pl.85.13"></a><var>85.13</var>(b) The rate of the tax imposed under this subdivision is as provided in this <br/>
<a id="pl.85.14"></a><var>85.14</var>paragraph for the following taxable years:<br/>
<a id="pl.85.15"></a><var>85.15</var>(1) for 2012 and 2013, 2.45 percent;<br/>
<a id="pl.85.16"></a><var>85.16</var>(2) for 2014, 2.23 percent;<br/>
<a id="pl.85.17"></a><var>85.17</var>(3) for 2015, 2.11 percent;<br/>
<a id="pl.85.18"></a><var>85.18</var>(4) for 2016, 1.99 percent;<br/>
<a id="pl.85.19"></a><var>85.19</var>(5) for 2017, 1.74 percent;<br/>
<a id="pl.85.20"></a><var>85.20</var>(6) for 2018, 1.50 percent;<br/>
<a id="pl.85.21"></a><var>85.21</var>(7) for 2019, 1.26 percent;<br/>
<a id="pl.85.22"></a><var>85.22</var>(8) for 2020, 1.02 percent;<br/>
<a id="pl.85.23"></a><var>85.23</var>(9) for 2021, .78 percent;<br/>
<a id="pl.85.24"></a><var>85.24</var>(10) for 2022, .54 percent;<br/>
<a id="pl.85.25"></a><var>85.25</var>(11) for 2023, .30 percent; and<br/>
<a id="pl.85.26"></a><var>85.26</var>(12) for 2024 and subsequent years, .06 percent.<br/>
<a id="pl.85.27"></a><var>85.27</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.85.28"></a><var>85.28</var>December 31, 2010.<br/>
<br/>
<a id="bill.6.7.0"></a><a id="pl.85.29"></a><var>85.29</var>    Sec. 7. Minnesota Statutes 2010, section 298.015, subdivision 1, is amended to read:<br/>
<a id="pl.85.30"></a><var>85.30</var>    Subdivision 1. <b>Tax imposed.</b> A person engaged in the business of mining shall pay <br/>
<a id="pl.85.31"></a><var>85.31</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.85.32"></a><var>85.32</var>equal to two percent of the net proceeds from mining in Minnesota. The tax applies to all <br/>
<a id="pl.85.33"></a><var>85.33</var>mineral and energy resources ores, metals, and minerals mined or, extracted, produced, <br/>
<a id="pl.85.34"></a><var>85.34</var>or refined within the state of Minnesota except for sand, silica sand, gravel, building <br/>
<a id="pl.85.35"></a><var>85.35</var>stone, crushed rock, limestone, granite, dimension granite, dimension stone, horticultural <br/>
<a id="pl.86.1"></a><var>86.1</var>peat, clay, soil, iron ore, and taconite concentrates. The tax is in addition to all other <br/>
<a id="pl.86.2"></a><var>86.2</var>taxes provided for by law. <br/>
<a id="pl.86.3"></a><var>86.3</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.86.4"></a><var>86.4</var>December 31, 2010.<br/>
<br/>
<a id="bill.6.8.0"></a><a id="pl.86.5"></a><var>86.5</var>    Sec. 8. Minnesota Statutes 2010, section 298.015, subdivision 2, is amended to read:<br/>
<a id="pl.86.6"></a><var>86.6</var>    Subd. 2. <b>Net proceeds.</b> For purposes of this section, the term "net proceeds" means <br/>
<a id="pl.86.7"></a><var>86.7</var>the gross proceeds from mining, as defined in section 
         <statute_ref>298.016</statute_ref>, less the deductions allowed <br/>
<a id="pl.86.8"></a><var>86.8</var>in section 
<statute_ref>298.017</statute_ref> for purposes of determining taxable income under section 298.01, <br/>
<a id="pl.86.9"></a><var>86.9</var>subdivision 3b, applied to the mining, production, processing, beneficiation, smelting, or <br/>
<a id="pl.86.10"></a><var>86.10</var>refining of metal or mineral products. No other credits or deductions shall apply to this tax <br/>
<a id="pl.86.11"></a><var>86.11</var>except for those provided in section 
<statute_ref>298.017</statute_ref>. <br/>
<a id="pl.86.12"></a><var>86.12</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.86.13"></a><var>86.13</var>thereafter.<br/>
<br/>
<a id="bill.6.9.0"></a><a id="pl.86.14"></a><var>86.14</var>    Sec. 9. Minnesota Statutes 2010, section 298.016, subdivision 4, is amended to read:<br/>
<a id="pl.86.15"></a><var>86.15</var>    Subd. 4. <b>Definitions</b><b> Metal or mineral products; definition</b><b>.</b> For the purposes of <br/>
<a id="pl.86.16"></a><var>86.16</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.86.17"></a><var>86.17</var>meaning given them unless the context clearly indicates otherwise. <br/>
<a id="pl.86.18"></a><var>86.18</var>(a) "metal or mineral products" means all those mineral and energy resources ores, <br/>
<a id="pl.86.19"></a><var>86.19</var>metals, and minerals subject to the tax provided in section 
         <statute_ref>298.015</statute_ref>. <br/>
<a id="pl.86.20"></a><var>86.20</var>(b) "Exploration" means activities designed and engaged in to ascertain the <br/>
<a id="pl.86.21"></a><var>86.21</var>existence, location, extent, or quality of any deposit of metal or mineral products prior to <br/>
<a id="pl.86.22"></a><var>86.22</var>the development of a mining site.<br/>
<a id="pl.86.23"></a><var>86.23</var>(c) "Development" means activities designed and engaged in to prepare or develop <br/>
<a id="pl.86.24"></a><var>86.24</var>a potential mining site for mining after the existence of metal or mineral products in <br/>
<a id="pl.86.25"></a><var>86.25</var>commercially marketable quantities has been disclosed including, but not limited to, <br/>
<a id="pl.86.26"></a><var>86.26</var>the clearing of forestation, the building of roads, removal of overburden, or the sinking <br/>
<a id="pl.86.27"></a><var>86.27</var>of shafts.<br/>
<a id="pl.86.28"></a><var>86.28</var>(d) "Research" means activities designed and engaged in to create new or improved <br/>
<a id="pl.86.29"></a><var>86.29</var>methods of mining, producing, processing, beneficiating, smelting, or refining metal <br/>
<a id="pl.86.30"></a><var>86.30</var>or mineral products.<br/>
<a id="pl.86.31"></a><var>86.31</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.86.32"></a><var>86.32</var>December 31, 2010. <br/>
<br/>
<a id="bill.6.10.0"></a><a id="pl.87.1"></a><var>87.1</var>    Sec. 10. Minnesota Statutes 2010, section 298.225, subdivision 1, is amended to read:<br/>
<a id="pl.87.2"></a><var>87.2</var>    Subdivision 1. <b>Guaranteed distribution.</b> (a) The distribution of the taconite <br/>
<a id="pl.87.3"></a><var>87.3</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.87.4"></a><var>87.4</var>7, and 8, shall equal the lesser of the following amounts: <br/>
<a id="pl.87.5"></a><var>87.5</var>(1) the amount distributed pursuant to this section and section 
         <statute_ref>298.28</statute_ref>, with respect <br/>
<a id="pl.87.6"></a><var>87.6</var>to 1983 production if the production for the year prior to the distribution year is no less <br/>
<a id="pl.87.7"></a><var>87.7</var>than 42,000,000 taxable tons. If the production is less than 42,000,000 taxable tons, the <br/>
<a id="pl.87.8"></a><var>87.8</var>amount of the distributions shall be reduced proportionately at the rate of two percent <br/>
<a id="pl.87.9"></a><var>87.9</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.87.10"></a><var>87.10</var>42,000,000 tons; or <br/>
<a id="pl.87.11"></a><var>87.11</var>(2)(i) for the distributions made pursuant to section 
         <statute_ref>298.28, subdivisions 4, <br/>
<a id="pl.87.12"></a><var>87.12</var>paragraphs (b)
         </statute_ref> and (c), and 6, paragraph (c), 31.2 percent of the amount distributed <br/>
<a id="pl.87.13"></a><var>87.13</var>pursuant to this section and section 
         <statute_ref>298.28</statute_ref>, with respect to 1983 production; <br/>
<a id="pl.87.14"></a><var>87.14</var>(ii) for the distributions made pursuant to section 
         <statute_ref>298.28, subdivision 5</statute_ref>, paragraphs <br/>
<a id="pl.87.15"></a><var>87.15</var>(b) and (d), 75 percent of the amount distributed pursuant to this section and section <br/>
<statute_ref><a id="pl.87.16"></a><var>87.16</var>298.28
         </statute_ref>, with respect to 1983 production. <br/>
<a id="pl.87.17"></a><var>87.17</var>(b) The distribution of the taconite production tax as provided in section 
         <statute_ref>298.28, <br/>
<a id="pl.87.18"></a><var>87.18</var>subdivision 2
         </statute_ref>, shall equal the following amount: <br/>
<a id="pl.87.19"></a><var>87.19</var>(1) if the production for the year prior to the distribution year is at least 42,000,000 <br/>
<a id="pl.87.20"></a><var>87.20</var>taxable tons, the amount distributed pursuant to this section and section 
         <statute_ref>298.28</statute_ref> with <br/>
<a id="pl.87.21"></a><var>87.21</var>respect to 1999 production; or <br/>
<a id="pl.87.22"></a><var>87.22</var>(2) if the production for the year prior to the distribution year is less than 42,000,000 <br/>
<a id="pl.87.23"></a><var>87.23</var>taxable tons, the amount distributed pursuant to this section and section 
         <statute_ref>298.28</statute_ref> with respect <br/>
<a id="pl.87.24"></a><var>87.24</var>to 1999 production, reduced proportionately at the rate of two percent for each 1,000,000 <br/>
<a id="pl.87.25"></a><var>87.25</var>tons or part of 1,000,000 tons by which the production is less than 42,000,000 tons. <br/>
<a id="pl.87.26"></a><var>87.26</var><b>EFFECTIVE DATE.</b>This section is effective for distributions in 2012 and <br/>
<a id="pl.87.27"></a><var>87.27</var>thereafter.<br/>
<br/>
<a id="bill.6.11.0"></a><a id="pl.87.28"></a><var>87.28</var>    Sec. 11. Minnesota Statutes 2010, section 298.24, subdivision 1, is amended to read:<br/>
<a id="pl.87.29"></a><var>87.29</var>    Subdivision 1. <b>Imposed; calculation.</b> (a) For concentrate produced in 2001, <br/>
<a id="pl.87.30"></a><var>87.30</var>2002, and 2003 2011 and subsequent years, there is imposed upon taconite and iron <br/>
<a id="pl.87.31"></a><var>87.31</var>sulphides, and upon the mining and quarrying thereof, and upon the production of <br/>
<a id="pl.87.32"></a><var>87.32</var>iron ore concentrate therefrom, and upon the concentrate so produced, and upon other <br/>
<a id="pl.87.33"></a><var>87.33</var>iron-bearing material, a tax of $2.103 $2.074 per gross ton of merchantable iron ore <br/>
<a id="pl.87.34"></a><var>87.34</var>concentrate produced therefrom. For concentrates produced in 2005, the tax rate is the <br/>
<a id="pl.88.1"></a><var>88.1</var>same rate imposed for concentrates produced in 2004. For concentrates produced in 2009 <br/>
<a id="pl.88.2"></a><var>88.2</var>and subsequent years, the tax is also imposed upon other iron-bearing material.<br/>
<a id="pl.88.3"></a><var>88.3</var>    (b) For concentrates produced in 2006 and subsequent years, the tax rate shall be <br/>
<a id="pl.88.4"></a><var>88.4</var>equal to the preceding year's tax rate plus an amount equal to the preceding year's tax rate <br/>
<a id="pl.88.5"></a><var>88.5</var>multiplied by the percentage increase in the implicit price deflator from the fourth quarter <br/>
<a id="pl.88.6"></a><var>88.6</var>of the second preceding year to the fourth quarter of the preceding year. "Implicit price <br/>
<a id="pl.88.7"></a><var>88.7</var>deflator" means the implicit price deflator for the gross domestic product prepared by the <br/>
<a id="pl.88.8"></a><var>88.8</var>Bureau of Economic Analysis of the United States Department of Commerce.<br/>
<a id="pl.88.9"></a><var>88.9</var>    (c) An additional tax is imposed equal to three cents per gross ton of merchantable <br/>
<a id="pl.88.10"></a><var>88.10</var>iron ore concentrate for each one percent that the iron content of the product exceeds 72 <br/>
<a id="pl.88.11"></a><var>88.11</var>percent, when dried at 212 degrees Fahrenheit.<br/>
<a id="pl.88.12"></a><var>88.12</var>    (d) (c) The tax on taconite and iron sulphides shall be imposed on the average of the <br/>
<a id="pl.88.13"></a><var>88.13</var>production for the current year and the previous two years. The rate of the tax imposed <br/>
<a id="pl.88.14"></a><var>88.14</var>will be the current year's tax rate. This clause shall not apply in the case of the closing <br/>
<a id="pl.88.15"></a><var>88.15</var>of a taconite facility if the property taxes on the facility would be higher if this clause <br/>
<a id="pl.88.16"></a><var>88.16</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.88.17"></a><var>88.17</var>imposed on the current year production.<br/>
<a id="pl.88.18"></a><var>88.18</var>    (e) (d) If the tax or any part of the tax imposed by this subdivision is held to be <br/>
<a id="pl.88.19"></a><var>88.19</var>unconstitutional, a tax of $2.103 $2.074 per gross ton of merchantable iron ore concentrate <br/>
<a id="pl.88.20"></a><var>88.20</var>produced shall be imposed.<br/>
<a id="pl.88.21"></a><var>88.21</var>    (f) (e) Consistent with the intent of this subdivision to impose a tax based upon the <br/>
<a id="pl.88.22"></a><var>88.22</var>weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly <br/>
<a id="pl.88.23"></a><var>88.23</var>determine the weight of merchantable iron ore concentrate included in fluxed pellets by <br/>
<a id="pl.88.24"></a><var>88.24</var>subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic <br/>
<a id="pl.88.25"></a><var>88.25</var>flux additives included in the pellets from the weight of the pellets. For purposes of this <br/>
<a id="pl.88.26"></a><var>88.26</var>paragraph, "fluxed pellets" are pellets produced in a process in which limestone, dolomite, <br/>
<a id="pl.88.27"></a><var>88.27</var>olivine, or other basic flux additives are combined with merchantable iron ore concentrate. <br/>
<a id="pl.88.28"></a><var>88.28</var>No subtraction from the weight of the pellets shall be allowed for binders, mineral and <br/>
<a id="pl.88.29"></a><var>88.29</var>chemical additives other than basic flux additives, or moisture.<br/>
<a id="pl.88.30"></a><var>88.30</var>    (g) (f)(1) Notwithstanding any other provision of this subdivision, for the first two <br/>
<a id="pl.88.31"></a><var>88.31</var>years of a plant's commercial production of direct reduced ore from ore mined in this state, <br/>
<a id="pl.88.32"></a><var>88.32</var>no tax is imposed under this section. As used in this paragraph, "commercial production" <br/>
<a id="pl.88.33"></a><var>88.33</var>is production of more than 50,000 tons of direct reduced ore in the current year or in any <br/>
<a id="pl.88.34"></a><var>88.34</var>prior year, "noncommercial production" is production of 50,000 tons or less of direct <br/>
<a id="pl.88.35"></a><var>88.35</var>reduced ore in any year, and "direct reduced ore" is ore that results in a product that has an <br/>
<a id="pl.88.36"></a><var>88.36</var>iron content of at least 75 percent. For the third year of a plant's commercial production of <br/>
<a id="pl.89.1"></a><var>89.1</var>direct reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate <br/>
<a id="pl.89.2"></a><var>89.2</var>otherwise determined under this subdivision. For the fourth commercial production year, <br/>
<a id="pl.89.3"></a><var>89.3</var>the rate is 50 percent of the rate otherwise determined under this subdivision; for the fifth <br/>
<a id="pl.89.4"></a><var>89.4</var>commercial production year, the rate is 75 percent of the rate otherwise determined under <br/>
<a id="pl.89.5"></a><var>89.5</var>this subdivision; and for all subsequent commercial production years, the full rate is <br/>
<a id="pl.89.6"></a><var>89.6</var>imposed.<br/>
<a id="pl.89.7"></a><var>89.7</var>    (2) Subject to clause (1), production of direct reduced ore in this state is subject to <br/>
<a id="pl.89.8"></a><var>89.8</var>the tax imposed by this section, but if that production is not produced by a producer of <br/>
<a id="pl.89.9"></a><var>89.9</var>taconite, iron sulfides, or other iron-bearing material, the production of taconite, iron <br/>
<a id="pl.89.10"></a><var>89.10</var>sulfides, or other iron-bearing material, that is consumed in the production of direct <br/>
<a id="pl.89.11"></a><var>89.11</var>reduced iron in this state is not subject to the tax imposed by this section on taconite, <br/>
<a id="pl.89.12"></a><var>89.12</var>iron sulfides, or other iron-bearing material.<br/>
<a id="pl.89.13"></a><var>89.13</var>    (3) Notwithstanding any other provision of this subdivision, no tax is imposed <br/>
<a id="pl.89.14"></a><var>89.14</var>on direct reduced ore under this section during the facility's noncommercial production <br/>
<a id="pl.89.15"></a><var>89.15</var>of direct reduced ore. The taconite or iron sulphides consumed in the noncommercial <br/>
<a id="pl.89.16"></a><var>89.16</var>production of direct reduced ore is subject to the tax imposed by this section on taconite <br/>
<a id="pl.89.17"></a><var>89.17</var>and iron sulphides. Three-year average production of direct reduced ore does not <br/>
<a id="pl.89.18"></a><var>89.18</var>include production of direct reduced ore in any noncommercial year. Three-year average <br/>
<a id="pl.89.19"></a><var>89.19</var>production for a direct reduced ore facility that has noncommercial production is the <br/>
<a id="pl.89.20"></a><var>89.20</var>average of the commercial production of direct reduced ore for the current year and the <br/>
<a id="pl.89.21"></a><var>89.21</var>previous two commercial years.<br/>
<a id="pl.89.22"></a><var>89.22</var>    (4) This paragraph applies only to plants for which all environmental permits have <br/>
<a id="pl.89.23"></a><var>89.23</var>been obtained and construction has begun before July 1, 2008.<br/>
<a id="pl.89.24"></a><var>89.24</var><b>EFFECTIVE DATE.</b>This section is effective for production in 2011 and thereafter.<br/>
<br/>
<a id="bill.6.12.0"></a><a id="pl.89.25"></a><var>89.25</var>    Sec. 12. Minnesota Statutes 2010, section 298.28, subdivision 3, is amended to read:<br/>
<a id="pl.89.26"></a><var>89.26</var>    Subd. 3. <b>Cities; towns.</b> (a) 12.5 12.2 cents per taxable ton, less any amount <br/>
<a id="pl.89.27"></a><var>89.27</var>distributed under subdivision 8, and paragraph (b), must be allocated to the taconite <br/>
<a id="pl.89.28"></a><var>89.28</var>municipal aid account to be distributed as provided in section 
         <statute_ref>298.282</statute_ref>.<br/>
<a id="pl.89.29"></a><var>89.29</var>    (b) An amount must be allocated to towns or cities that is annually certified by <br/>
<a id="pl.89.30"></a><var>89.30</var>the county auditor of a county containing a taconite tax relief area as defined in section <br/>
<statute_ref><a id="pl.89.31"></a><var>89.31</var>273.134, paragraph (b)
         </statute_ref>, within which there is (1) an organized township if, as of January <br/>
<a id="pl.89.32"></a><var>89.32</var>2, 1982, more than 75 percent of the assessed valuation of the township consists of iron <br/>
<a id="pl.89.33"></a><var>89.33</var>ore or (2) a city if, as of January 2, 1980, more than 75 percent of the assessed valuation <br/>
<a id="pl.89.34"></a><var>89.34</var>of the city consists of iron ore.<br/>
<a id="pl.90.1"></a><var>90.1</var>    (c) The amount allocated under paragraph (b) will be the portion of a township's or <br/>
<a id="pl.90.2"></a><var>90.2</var>city's certified levy equal to the proportion of (1) the difference between 50 percent of <br/>
<a id="pl.90.3"></a><var>90.3</var>January 2, 1982, assessed value in the case of a township and 50 percent of the January 2, <br/>
<a id="pl.90.4"></a><var>90.4</var>1980, assessed value in the case of a city and its current assessed value to (2) the sum of <br/>
<a id="pl.90.5"></a><var>90.5</var>its current assessed value plus the difference determined in (1), provided that the amount <br/>
<a id="pl.90.6"></a><var>90.6</var>distributed shall not exceed $55 per capita in the case of a township or $75 per capita in <br/>
<a id="pl.90.7"></a><var>90.7</var>the case of a city. For purposes of this limitation, population will be determined according <br/>
<a id="pl.90.8"></a><var>90.8</var>to the 1980 decennial census conducted by the United States Bureau of the Census. If the <br/>
<a id="pl.90.9"></a><var>90.9</var>current assessed value of the township exceeds 50 percent of the township's January 2, <br/>
<a id="pl.90.10"></a><var>90.10</var>1982, assessed value, or if the current assessed value of the city exceeds 50 percent of the <br/>
<a id="pl.90.11"></a><var>90.11</var>city's January 2, 1980, assessed value, this paragraph shall not apply. For purposes of this <br/>
<a id="pl.90.12"></a><var>90.12</var>paragraph, "assessed value," when used in reference to years other than 1980 or 1982, <br/>
<a id="pl.90.13"></a><var>90.13</var>means the appropriate net tax capacities multiplied by 10.2.<br/>
<a id="pl.90.14"></a><var>90.14</var>    (d) In addition to other distributions under this subdivision, three 3.1 cents per <br/>
<a id="pl.90.15"></a><var>90.15</var>taxable ton for distributions in 2009 2012 and subsequent years must be allocated for <br/>
<a id="pl.90.16"></a><var>90.16</var>distribution to towns that are entirely located within the taconite tax relief area defined <br/>
<a id="pl.90.17"></a><var>90.17</var>in section 
         <statute_ref>273.134</statute_ref>, paragraph (b). For distribution in 2010 and subsequent years, the <br/>
<a id="pl.90.18"></a><var>90.18</var>three-cent amount must be annually increased in the same proportion as the increase <br/>
<a id="pl.90.19"></a><var>90.19</var>in the implicit price deflator as provided in section 
<statute_ref>298.24, subdivision 1</statute_ref>. The amount <br/>
<a id="pl.90.20"></a><var>90.20</var>available under this paragraph will be distributed to eligible towns on a per capita basis, <br/>
<a id="pl.90.21"></a><var>90.21</var>provided that no town may receive more than $50,000 in any year under this paragraph. <br/>
<a id="pl.90.22"></a><var>90.22</var>Any amount of the distribution that exceeds the $50,000 limitation for a town under this <br/>
<a id="pl.90.23"></a><var>90.23</var>paragraph must be redistributed on a per capita basis among the other eligible towns, to <br/>
<a id="pl.90.24"></a><var>90.24</var>whose distributions do not exceed $50,000.<br/>
<br/>
<a id="bill.6.13.0"></a><a id="pl.90.25"></a><var>90.25</var>    Sec. 13. Minnesota Statutes 2010, section 298.28, subdivision 6, is amended to read:<br/>
<a id="pl.90.26"></a><var>90.26</var>    Subd. 6. <b>Property tax relief.</b> (a) In 2002 2012 and thereafter, 
         <statute_ref>33.9</statute_ref> 41.6 cents per <br/>
<a id="pl.90.27"></a><var>90.27</var>taxable ton, less any amount required to be distributed under paragraphs (b) and (c), or <br/>
<a id="pl.90.28"></a><var>90.28</var>section 
         <statute_ref>298.2961</statute_ref>, subdivision 5, must be allocated to St. Louis County acting as the <br/>
<a id="pl.90.29"></a><var>90.29</var>counties' fiscal agent, to be distributed as provided in sections 
         <statute_ref>273.134</statute_ref> to 
         <statute_ref>273.136</statute_ref>.<br/>
<a id="pl.90.30"></a><var>90.30</var>(b) If an electric power plant owned by and providing the primary source of power <br/>
<a id="pl.90.31"></a><var>90.31</var>for a taxpayer mining and concentrating taconite is located in a county other than the <br/>
<a id="pl.90.32"></a><var>90.32</var>county in which the mining and the concentrating processes are conducted, .1875 cent per <br/>
<a id="pl.90.33"></a><var>90.33</var>taxable ton of the tax imposed and collected from such taxpayer shall be paid to the county.<br/>
<a id="pl.90.34"></a><var>90.34</var>(c) If an electric power plant owned by and providing the primary source of power <br/>
<a id="pl.90.35"></a><var>90.35</var>for a taxpayer mining and concentrating taconite is located in a school district other than <br/>
<a id="pl.91.1"></a><var>91.1</var>a school district in which the mining and concentrating processes are conducted, .4541 <br/>
<a id="pl.91.2"></a><var>91.2</var>cent per taxable ton of the tax imposed and collected from the taxpayer shall be paid to <br/>
<a id="pl.91.3"></a><var>91.3</var>the school district.<br/>
<br/>
<a id="bill.6.14.0"></a><a id="pl.91.4"></a><var>91.4</var>    Sec. 14. Minnesota Statutes 2010, section 298.28, subdivision 7, is amended to read:<br/>
<a id="pl.91.5"></a><var>91.5</var>    Subd. 7. <b>Iron Range Resources and Rehabilitation Board.</b> For the 1998 2012 and <br/>
<a id="pl.91.6"></a><var>91.6</var>subsequent years distribution, 6.5 8.3 cents per taxable ton shall be paid to the Iron Range <br/>
<a id="pl.91.7"></a><var>91.7</var>Resources and Rehabilitation Board for the purposes of section 
         <statute_ref>298.22</statute_ref>. That amount <br/>
<a id="pl.91.8"></a><var>91.8</var>shall be increased in 1999 and subsequent years in the same proportion as the increase <br/>
<a id="pl.91.9"></a><var>91.9</var>in the implicit price deflator as provided in section 
<statute_ref>298.24, subdivision 1</statute_ref>. The amount <br/>
<a id="pl.91.10"></a><var>91.10</var>distributed pursuant to this subdivision shall be expended within or for the benefit of the <br/>
<a id="pl.91.11"></a><var>91.11</var>taconite assistance area defined in section 
         <statute_ref>273.1341</statute_ref>. No part of the fund provided in this <br/>
<a id="pl.91.12"></a><var>91.12</var>subdivision may be used to provide loans for the operation of private business unless the <br/>
<a id="pl.91.13"></a><var>91.13</var>loan is approved by the governor.<br/>
<br/>
<a id="bill.6.15.0"></a><a id="pl.91.14"></a><var>91.14</var>    Sec. 15. Minnesota Statutes 2010, section 298.28, subdivision 9, is amended to read:<br/>
<a id="pl.91.15"></a><var>91.15</var>    Subd. 9. <b>Douglas J. Johnson economic protection trust fund.</b> In 1999, 
<statute_ref>3.35</statute_ref> 2012 <br/>
<a id="pl.91.16"></a><var>91.16</var>and subsequent years, 4.2 cents per taxable ton shall be paid to the Douglas J. Johnson <br/>
<a id="pl.91.17"></a><var>91.17</var>economic protection trust fund.<br/>
<br/>
<a id="bill.6.16.0"></a><a id="pl.91.18"></a><var>91.18</var>    Sec. 16. Minnesota Statutes 2010, section 298.28, subdivision 9b, is amended to read:<br/>
<a id="pl.91.19"></a><var>91.19</var>    Subd. 9b. <b>Taconite environmental fund.</b> In 2012 and subsequent years, five cents <br/>
<a id="pl.91.20"></a><var>91.20</var>per ton, plus the amount paid to the fund in 2011 under subdivision 10, paragraph (b), must <br/>
<a id="pl.91.21"></a><var>91.21</var>be paid to the taconite environmental fund for use under section 
         <statute_ref>298.2961, subdivision 4</statute_ref>.<br/>
<br/>
<a id="bill.6.17.0"></a><a id="pl.91.22"></a><var>91.22</var>    Sec. 17. <b> REPEALER.</b><br/>
<a id="pl.91.23"></a><var>91.23</var>(a) Minnesota Statutes 2010, sections 298.227; and 298.28, subdivisions 8, 9a, <br/>
<a id="pl.91.24"></a><var>91.24</var>9c, and 10, are repealed.<br/>
<a id="pl.91.25"></a><var>91.25</var>(b) Minnesota Statutes 2010, section 298.285, is repealed.<br/>
<a id="pl.91.26"></a><var>91.26</var>(c) Minnesota Statutes 2010, section 298.017, is repealed.<br/>
<a id="pl.91.27"></a><var>91.27</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective for distributions in 2012 and <br/>
<a id="pl.91.28"></a><var>91.28</var>thereafter of taxes on production in 2011 and thereafter. Paragraph (b) is effective June 30, <br/>
<a id="pl.91.29"></a><var>91.29</var>2011. Paragraph (c) is effective for taxable years beginning after December 31, 2010.<br/>
<br/>
<a id="bill.7.0.0"></a>

<a id="bill.7.1.0"></a><a id="pl.92.3"></a><var>92.3</var>    Section 1. Minnesota Statutes 2010, section 270A.03, subdivision 2, is amended to <br/>
<a id="pl.92.4"></a><var>92.4</var>read:<br/>
<a id="pl.92.5"></a><var>92.5</var>    Subd. 2. <b>Claimant agency.</b> "Claimant agency" means any state agency, as defined <br/>
<a id="pl.92.6"></a><var>92.6</var>by section 
         <statute_ref>14.02, subdivision 2</statute_ref>, the regents of the University of Minnesota, any district <br/>
<a id="pl.92.7"></a><var>92.7</var>court of the state, any county, any statutory or home rule charter city, including a city <br/>
<a id="pl.92.8"></a><var>92.8</var>that is presenting a claim for a municipal hospital or a public library or a municipal <br/>
<a id="pl.92.9"></a><var>92.9</var>ambulance service, a hospital district, a private nonprofit hospital that leases its building <br/>
<a id="pl.92.10"></a><var>92.10</var>from the county or city in which it is located, any ambulance service licensed under <br/>
<a id="pl.92.11"></a><var>92.11</var>chapter 144E, any public agency responsible for child support enforcement, any public <br/>
<a id="pl.92.12"></a><var>92.12</var>agency responsible for the collection of court-ordered restitution, and any public agency <br/>
<a id="pl.92.13"></a><var>92.13</var>established by general or special law that is responsible for the administration of a <br/>
<a id="pl.92.14"></a><var>92.14</var>low-income housing program, and the Minnesota collection enterprise as defined in <br/>
<a id="pl.92.15"></a><var>92.15</var>section 
         <statute_ref>16D.02, subdivision 8</statute_ref>, for the purpose of collecting the costs imposed under <br/>
<a id="pl.92.16"></a><var>92.16</var>section 
         <statute_ref>16D.11</statute_ref>. A county may act as a claimant agency on behalf of an ambulance service <br/>
<a id="pl.92.17"></a><var>92.17</var>licensed under chapter 144E if the ambulance service's primary service area is located at <br/>
<a id="pl.92.18"></a><var>92.18</var>least in part within the county, but more than one county may not act as a claimant agency <br/>
<a id="pl.92.19"></a><var>92.19</var>for a licensed ambulance service with respect to the same debt.<br/>
<a id="pl.92.20"></a><var>92.20</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.92.21"></a><var>92.21</var>    Sec. 2. Minnesota Statutes 2010, section 270A.07, subdivision 1, is amended to read:<br/>
<a id="pl.92.22"></a><var>92.22</var>    Subdivision 1. <b>Notification requirement.</b> (a) Any claimant agency, seeking <br/>
<a id="pl.92.23"></a><var>92.23</var>collection of a debt through setoff against a refund due, shall submit to the commissioner <br/>
<a id="pl.92.24"></a><var>92.24</var>information indicating the amount of each debt and information identifying the debtor, as <br/>
<a id="pl.92.25"></a><var>92.25</var>required by section 
         <statute_ref>270A.04, subdivision 3</statute_ref>.<br/>
<a id="pl.92.26"></a><var>92.26</var>(b) For each setoff of a debt against a refund due, the commissioner shall charge a fee <br/>
<a id="pl.92.27"></a><var>92.27</var>of $15. The proceeds of fees shall be allocated by depositing $4 of each $15 fee collected <br/>
<a id="pl.92.28"></a><var>92.28</var>into a Department of Revenue recapture revolving fund and depositing the remaining <br/>
<a id="pl.92.29"></a><var>92.29</var>balance into the general fund. The sums deposited into the revolving fund are appropriated <br/>
<a id="pl.92.30"></a><var>92.30</var>to the commissioner for the purpose of administering the Revenue Recapture Act.<br/>
<a id="pl.92.31"></a><var>92.31</var>(c) For each debt for which a county acts as claimant agency on behalf of a licensed <br/>
<a id="pl.92.32"></a><var>92.32</var>ambulance service, the county may charge the ambulance service a fee not to exceed the <br/>
<a id="pl.92.33"></a><var>92.33</var>cost of administering the claim.<br/>
<a id="pl.93.1"></a><var>93.1</var>(d) The claimant agency shall notify the commissioner when a debt has been <br/>
<a id="pl.93.2"></a><var>93.2</var>satisfied or reduced by at least $200 within 30 days after satisfaction or reduction.<br/>
<a id="pl.93.3"></a><var>93.3</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.93.4"></a><var>93.4</var>    Sec. 3. Minnesota Statutes 2010, section 270C.13, subdivision 1, is amended to read:<br/>
<a id="pl.93.5"></a><var>93.5</var>    Subdivision 1. <b>Biennial report.</b> The commissioner shall report to the legislature <br/>
<a id="pl.93.6"></a><var>93.6</var>by March 1 of each odd-numbered year on the overall incidence of the income tax, <br/>
<a id="pl.93.7"></a><var>93.7</var>sales and excise taxes, and property tax. The report shall present information on the <br/>
<a id="pl.93.8"></a><var>93.8</var>distribution of the tax burden as follows: (1) for the overall income distribution, using <br/>
<a id="pl.93.9"></a><var>93.9</var>a systemwide incidence measure such as the Suits index or other appropriate measures <br/>
<a id="pl.93.10"></a><var>93.10</var>of equality and inequality; (2) by income classes, including at a minimum deciles of the <br/>
<a id="pl.93.11"></a><var>93.11</var>income distribution; and (3) by other appropriate taxpayer characteristics. The report <br/>
<a id="pl.93.12"></a><var>93.12</var>must also include information on the distribution of the burden of federal taxes borne <br/>
<a id="pl.93.13"></a><var>93.13</var>by Minnesota residents.<br/>
<a id="pl.93.14"></a><var>93.14</var><b>EFFECTIVE DATE.</b>This section is effective beginning with the report due in <br/>
<a id="pl.93.15"></a><var>93.15</var>March 2013.<br/>
<br/>
<a id="bill.7.4.0"></a><a id="pl.93.16"></a><var>93.16</var>    Sec. 4. <b>APPROPRIATION; TAX INCIDENCE REPORT.</b><br/>
<a id="pl.93.17"></a><var>93.17</var>$15,000 in fiscal year 2012 and $15,000 in fiscal year 2013 are appropriated from <br/>
<a id="pl.93.18"></a><var>93.18</var>the general fund to the commissioner of revenue for the change to the tax incidence <br/>
<a id="pl.93.19"></a><var>93.19</var>report in section 3.<br/>
<br/>
<a id="bill.7.5.0"></a><a id="pl.93.20"></a><var>93.20</var>    Sec. 5. <b>CASH FLOW ACCOUNT REDUCTION.</b><br/>
<a id="pl.93.21"></a><var>93.21</var>On July 1, 2011, the commissioner of management and budget shall cancel <br/>
<a id="pl.93.22"></a><var>93.22</var>$216,000,000 of the balance in the cash flow account in Minnesota Statutes, section <br/>
<a id="pl.93.23"></a><var>93.23</var>16A.152, to the general fund.<br/>
<br/>
<a id="bill.7.6.0"></a><a id="pl.93.24"></a><var>93.24</var>    Sec. 6. <b>BUDGET RESERVE REDUCTION.</b><br/>
<a id="pl.93.25"></a><var>93.25</var>On July 1, 2011, the commissioner of management and budget shall cancel <br/>
<a id="pl.93.26"></a><var>93.26</var>$8,665,000 of the balance in the budget reserve account in Minnesota Statutes, section <br/>
<a id="pl.93.27"></a><var>93.27</var>16A.152, to the general fund.<br/>