ARTICLE 1 - INDIVIDUAL AND ESTATE TAX

Authorizing tax return information disclosure to the Wisconsin secretary of revenue for reciprocity study; expanding the income tax subtraction for charitable contributions of food inventory; creating an income tax subtraction for certain military pension or other retirement pay from the federal government; modifying the Minnesota education tax credit; increasing the second tier rate of the research credit from 2.5 to 4.7 percent of the qualifying research expenses over $2 million for tax year 2013 and following years; directing the commissioner of revenue to negotiate a reciprocity agreement with the state of Wisconsin and permitting its termination only by law; removing payroll and property factor percentages from the general application and financial institutions apportionment formula; adding qualified small business property to estate tax definitions; providing an exclusion for certain farm and small business properties; imposing a recapture tax under certain conditions; appropriating money for one time to the commissioner of revenue for the income reciprocity benchmark study

ARTICLE 2 - FEDERAL UPDATE

Conforming to certain changes in the federal internal revenue code

ARTICLE 3 - SALES AND USE TAXES

Modifying the sales and use tax payment due dates by removing certain remittance exceptions for vendors; exempting ring tones from the sales and use tax; making technical changes to conform to the streamlined sales and use tax agreement; modifying certain provisions relating to sales and use tax rates for transitional period for services and advertising and promotional and other direct mail sourcing of sale requirements; requiring persons reselling admission tickets to charge sales tax on the total amount for which the ticket is resold and specifying applicable rules; expanding the sales tax exemption for sales and purchases to local government units; eliminating the sales tax on purchases by towns; expanding the sales and use tax exemption for certain public safety radio equipment; exempting certain aircraft and aircraft equipment from sales and use taxes; repealing the accelerated payment of monthly sales tax liability penalty for underpayment

ARTICLE 4 - LOCAL TAXES

Prohibiting local governments from spending money to promote a local sales
tax, limiting required referendum costs spending, and requiring the referendum to be held prior to legislative referendum authorization request; defining the term reserves adequate to meet such future obligations; modifying the current local sales tax rate in the city of Hermantown under certain conditions; modifying the Rochester local sales and use tax authority by allowing tax revenues to pay for certain capital and project expenditures and bonds; allowing a bonding referendum, limiting bond aggregate principal amounts, and authorizing extension of taxes; modifying the use of proceeds from the sales tax in Clearwater for regional parks, bicycle trails, park land open space and pedestrian walkways; extending the authorization for Marshall local tax imposition; authorizing Cloquet to impose by ordinance sales and use and excise taxes and to issue obligation bonds, specifying use of revenues, providing for tax termination; authorizing Fergus Falls to impose a sales and use tax; authorizing and providing for Hutchinson to impose by ordinance a sales and use
tax and a motor vehicle tax for a new water treatment facility and to improve the wastewater treatment facility, providing for tax termination; authorizing Lanesboro to impose by ordinance a sales and use tax up to a certain amount to be used for city street, utility system, and municipal building improvements, authorizing city bonds issuance, providing for tax termination upon city council sufficient revenue determination; authorizing Marshall to impose a local sales and use tax for the Minnesota emergency response and industry training center and the Southwest Minnesota regional amateur sports center, authorizing bonds and providing for tax termination; authorizing and providing for Medford to impose by ordinance a sales and use tax to repay certain loans associated with the financing of improvements to the city water and wastewater systems, providing for tax termination

ARTICLE 5 - PROPERTY TAXES

Modifying the school district referendum market value tax base; extending the allowed time period for political subdivisions holding state property for economic development purposes; 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 appeals of denial of Green Acres treatment; requiring the property valuation notice to specifically note when a property has been reclassified from the previous assessment year; expanding certain requirements for 4c property classification; extending eligibility for disabled veterans surviving spouses homestead market value exemption of property owned in whole or part to approved primary family caregivers of qualified disabled veteran; defining certain terms; modifying the state general levy against commercial-industrial property and seasonal residential recreational property; modifying special levies and the adjusted levy limit base; suspending ling maintenance of effort requirements; repealing the state general tax

ARTICLE 6 - AIDS, CREDITS, PAYMENTS, AND REFUNDS

Eliminating the sustainable forest incentive program; permanently reducing payments in lieu of tax (PILT) payments per acre on natural resource lands; reducing the goose management cropland payment amount; eliminating the political contribution refund; defining a forest management plan to provide a framework for site-specific healthy, productive, and sustainable forest resources and specifying requirements; providing a homestead market value exclusion; using the agricultural homestead market value credit as the basis for tax reductions and reimbursement; making disparity reduction equal to the amount certified for aid payable in 2011; reducing the percent of rent constituting property taxes for renter property tax refund claims from 19 percent to 15 percent; reducing the rent credit; reducing the
percentage of property taxes payable for manufactured home and park trailers; increasing the homeowner property tax refund; providing separate schedules for senior/disabled renters and nonsenior/nondisabled renters, with the maximum income eligible decreased to $40,000 for senior/disabled claimants and to $25,000 for nonsenior/nondisabled claimants; authorizing an alternative process for consolidating counties; defining first class city for local government aid (LGA); specifying county LGA aid for 2011 and city formula aid for first class cities for 2013 and eliminating city formula aid for 2014 and thereafter; specifying city aid distribution for 2013 and 2014; specifying municipal distribution LGA for 2011 and 2012 and the appropriation amounts; increasing the county-administered and township LGA general distribution; changing the in lieu payment appraised value percentage for the Lake Vermilion and Soudan underground mine state parks annual payments; specifying property tax refund claims administration for 2011; limiting the market value credit reimbursement for county and city payments; specifying the gross tax amount shown for the previous year; requiring a legislative report on payment in lieu of taxes (PILT) for state natural resource lands; authorizing the commissioner of administration to
make cooperation and consolidation grants to certain local governments;
repealing the sustainable forest incentive program and providing for transition payments and appropriation, the political contribution refund, wetlands exemption replacement of revenue, an inflation adjustment, the residential homestead market value credit, a credit reduction, and the Sustainable Forest Incentive Act (SFIA) program

ARTICLE 7 - MINERALS

Exempting certain property used in the business of mining from the net
proceeds tax on mining; defining refining; subjecting refining to the occupation tax and including hydrometallurgical processes in the definition of mining for tax purposes; including ore in gross income calculation; applying a tax imposition to ores and metals; modifying the metal and minerals product definition; removing the Range Association of Municipalities and Schools (RAMS) from the taconite production tax guaranteed distribution; changing the imposed tax on taconite and sulphides and the proceeds municipal distribution amount; repealing the Range Association of Municipalities and Schools (RAMS) and the Eveleth Hockey Hall of Fame distribution and the state taconite aid distribution and deductions

ARTICLE 8 - INSURANCES TAXES

Modifying certain insurance tax provisions; defining and redefining certain terms and conforming certain provisions; modifying surplus lines tax requirements; repealing certain provisions relating to bad debt refunds, and tax imposed on persons, firms, or corporation procuring insurance from unlicensed foreign companies or from an ineligible company

ARTICLE 9 - SCIENCE AND TECHNOLOGY PROGRAM

"Minnesota science and technology program"; establishing the Minnesota science and technology authority, specifying powers; allowing the authority to establish a commercialized research program to accelerate science and technology products commercialization, a federal research and development support program to increase federal funding, and an industry technology and competitiveness program to advance technological capacity; requiring entity financial assistance authority repayment; sunset date; appropriating money

ARTICLE 10 - MISCELLANEOUS

Requiring the tax incidence study prepared by the department of revenue to include information on federal tax burden; transferring amounts in the budget reserve account, cash flow account, and Douglas J. Johnson fund to the general fund

ARTICLE 11 - TOBACCO BONDS

Providing an exception from the general rule that the proceeds of litigation or a settlement must be deposited in the general fund; providing for tobacco settlement revenues may be deposited under the terms of the tobacco securitization bond provision; authorizing the commissioner of management and budget to issue debt under either the tobacco securitization bond provision or the tobacco appropriation bonds provision; authorizing the use of tobacco securitization bonds; creating the tobacco securitization authority; authorizing the authority to issue bonds in an aggregate principal amount and to provide sufficient funds for the establishment of a debt service reserve fund and the payment or provision for financing costs and capitalized interest; authorizing the issuance of tobacco appropriation bonds; establishing a process for validation of the appropriation bonds by the supreme court
(ra)