1E Relating to taxation

ARTICLE 1 - INCOME AND ESTATE TAXES

Authorizing tax return information disclosure to the Wisconsin secretary of revenue for reciprocity study; providing for a phased-in military retirement pay subtraction from federal taxable income; modifying the Minnesota education tax credit; providing a taxpayer budget reserve fund checkoff for income and property tax filings; modifying the Minnesota adjusted taxable estate definition by adding certain qualified small business and farm property, providing an exclusion for certain farm and small business properties, imposing a recapture tax under certain conditions; appropriating money to the commissioner of revenue for the income reciprocity benchmark study and for the state budget reserve tax checkoff

ARTICLE 2 - SALES TAXES

Exempting from the sales and use tax items purchased for transactions covered by medicare, medicaid, and durable medical equipment, resale of ticket purchases, and certain aircraft and aircraft equipment; eliminating the sales tax on purchases by towns; expanding the sales tax exemption for sales and purchases to local government units and for certain public safety radio equipment; authorizing cities (municipalities) to impose local sales and use taxes up to a certain amount and requiring voter general election approval, requiring exclusive dedication to specific capital projects approved by voters, allowing general obligation bonds issuance; clarifying election requirements held for local sales tax impositions; imposing a local government aid (LGA) offset (reduction) for cities imposing local taxes; modifying the current local sales tax rate in the city of Hermantown under certain conditions; modifying the Rochester local sales and use tax authority; modifying the use of the proceeds from the sales tax in the city of Clearwater; authorizing Fergus Falls, Lanesboro, and Hutchinson to impose sales and use taxes

ARTICLE 3 - TAX AIDS AND CREDITS

Decreasing the commissioner of natural resources (DNR) game and fish county payment amount; limiting the DNR wild goose management cropland payment; eliminating the political contribution refund; changing property tax capacity, property class 2c managed forest land property, market value homestead credits, net property taxes computation, the disparity reduction credit, tax capacity computation, the property tax refund, local government aid (LGA), property taxes payable in 2011 property tax refund claims administration, and property tax statement for taxes payable in 2012 only; reducing maintenance of effort requirements; appropriating money for local government consolidation and service-sharing grants; repealing the political contribution refund, wetlands exemption, inflation adjustment, market value homestead credit reduction, disparity reduction credit, and the sustainable forest resource management incentive

ARTICLE 4 - PROPERTY TAX

Lengthening the period for which political subdivisions may hold property for later resale; providing for a property tax exemption for attached machinery and personal property that is a part of certain electric generation facilities, specifying certain facility compliance criteria; providing for green acres treatment denial appeal; modifying the rural preserve property tax plan; allowing certain expenditures by nonprofit community-service organizations to be considered charitable contributions to qualify for a reduced property tax classification; modifying the homestead classification of disabled veteran taxable market value exclusion and the state general levy for commercial-industrial property and seasonal residential recreational property; repealing the conservation assessment plan definition and the state general tax

ARTICLE 5 - TAX INCREMENT FINANCING

Modifying tax increment financing (TIF) by requiring housing projects to be commenced by certain dates; extending the deadline for spending tax increment financing (TIF) increments to stimulate construction; modifying the boundaries for a TIF district in the city of Ramsey; authorizing the use of tax increments to repay Cohasset for certain payments; allowing Lino Lakes to extend the TIF district to a certain date, specifying conditions for extension

ARTICLE 6 - MINERALS

Exempting mining, producing, or refining other ores, metals, and minerals from the income tax and subjecting to the occupation tax; defining refining and defining mining to include hydrometallurgical processes; specifying a rate of occupation tax; making conforming amendments; modifying the taconite and iron sulphides tax, division and distribution of proceeds to cities and towns, property tax relief, the iron range resources and rehabilitation board (IRRRB) distribution, the Douglas J. Johnson economic protection trust fund payment, and the taconite environmental fund payment; repealing taconite economic development fund, the range association of municipalities and schools, the taconite economic development fund, city of Eveleth temporary distribution, increase, the state aid appropriation, and deductions

ARTICLE 7 - MISCELLANEOUS

Expanding the definition of claimant agency under the revenue recapture act for licensed ambulance services for unpaid debts collection purposes, authorizing submission of claims directly to the state, eliminating the authority of a county to charge an ambulance service a fee for administering a fee when acting as a claimant agency for the ambulance service, requiring tax information in the biennial report, appropriating money to the commissioner of revenue for the tax incidence report; reducing the cash flow account and the budget reserve by requiring the commissioner of management and budget (MMB) to cancel certain amounts to the general fund
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