<a id="pl.1.3"></a><var>1.3</var>changes to taxes on property, income and corporate franchise, aids to <br/>
<a id="pl.1.4"></a><var>1.4</var>local governments; modifying property tax refunds; appropriating money;<br/>
<a id="pl.1.5"></a><var>1.5</var>amending Minnesota Statutes 2010, sections 275.025, subdivisions 1, 2, 4; <br/>
<a id="pl.1.6"></a><var>1.6</var>289A.08, subdivision 3; 290.01, subdivisions 5, 19d, by adding a subdivision; <br/>
<a id="pl.1.7"></a><var>1.7</var>290.17, subdivision 4; 290A.04, subdivision 2a, by adding a subdivision; <br/>
<a id="pl.1.8"></a><var>1.8</var>290A.23, subdivision 1; Minnesota Statutes 2011 Supplement, sections 290.01, <br/>
<a id="pl.1.9"></a><var>1.9</var>subdivisions 19a, 19b, 19c; 290.0675, subdivision 1; 290A.03, subdivisions 11, <br/>
<a id="pl.1.10"></a><var>1.10</var>13; 290A.04, subdivisions 2, 4; 477A.013, subdivision 9; repealing Minnesota <br/>
<a id="pl.1.11"></a><var>1.11</var>Statutes 2010, sections 290.01, subdivision 6b; 290.0921, subdivision 7; <br/>
<a id="pl.1.12"></a><var>1.12</var>477A.013, subdivision 8; Minnesota Statutes 2011 Supplement, section 477A.03, <br/>
<a id="pl.1.13"></a><var>1.13</var>subdivision 2a.<br/>
<a id="pl.1.14"></a><var>1.14</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.15"></a><var>1.15</var>    Section 1. Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read:<br/>
<a id="pl.1.16"></a><var>1.16</var>    Subdivision 1. <b>Levy amount.</b> (a) The state general levy is levied against <br/>
<a id="pl.1.17"></a><var>1.17</var>commercial-industrial property and seasonal residential recreational property, as defined <br/>
<a id="pl.1.18"></a><var>1.18</var>in this section. <br/>
<a id="pl.1.19"></a><var>1.19</var>(b) The state general levy base amount for commercial-industrial property is <br/>
<a id="pl.1.20"></a><var>1.20</var>$673,552,000. For taxes payable in 2013, the state general levy for commercial-industrial <br/>
<a id="pl.1.21"></a><var>1.21</var>property is equal to the base amount. For taxes payable in 2014 to taxes payable in 2024, <br/>
<a id="pl.1.22"></a><var>1.22</var>the levy is reduced each year from the previous year's levy amount by 8.33 percent of <br/>
<a id="pl.1.23"></a><var>1.23</var>the base amount. For taxes payable in 2025 and thereafter, the state general levy for <br/>
<a id="pl.1.24"></a><var>1.24</var>commercial-industrial property is $0.<br/>
<a id="pl.1.25"></a><var>1.25</var>(c) The state general levy base amount for seasonal recreational property is <br/>
<a id="pl.1.26"></a><var>1.26</var>$592,000,000 $41,797,000 for taxes payable in 2002 2013. For taxes payable in <br/>
<a id="pl.1.27"></a><var>1.27</var>subsequent years, the levy base amount is increased each year by multiplying the levy <br/>
<a id="pl.1.28"></a><var>1.28</var>base amount for the prior year by the sum of one plus the rate of increase, if any, in the <br/>
<a id="pl.2.1"></a><var>2.1</var>implicit price deflator for government consumption expenditures and gross investment <br/>
<a id="pl.2.2"></a><var>2.2</var>for state and local governments prepared by the Bureau of Economic Analysts of the <br/>
<a id="pl.2.3"></a><var>2.3</var>United States Department of Commerce for the 12-month period ending March 31 of the <br/>
<a id="pl.2.4"></a><var>2.4</var>year prior to the year the taxes are payable. <br/>
<a id="pl.2.5"></a><var>2.5</var>(d) The tax under this section is not treated as a local tax rate under section 
         <statute_ref>469.177</statute_ref> <br/>
<a id="pl.2.6"></a><var>2.6</var>and is not the levy of a governmental unit under chapters 276A and 473F.<br/>
<a id="pl.2.7"></a><var>2.7</var>(e) The commissioner shall increase or decrease the preliminary or final rate rates for <br/>
<a id="pl.2.8"></a><var>2.8</var>a year as necessary to account for errors and tax base changes that affected a preliminary <br/>
<a id="pl.2.9"></a><var>2.9</var>or final rate for either of the two preceding years. Adjustments are allowed to the extent <br/>
<a id="pl.2.10"></a><var>2.10</var>that the necessary information is available to the commissioner at the time the rates for a <br/>
<a id="pl.2.11"></a><var>2.11</var>year must be certified, and for the following reasons:<br/>
<a id="pl.2.12"></a><var>2.12</var>(1) an erroneous report of taxable value by a local official;<br/>
<a id="pl.2.13"></a><var>2.13</var>(2) an erroneous calculation by the commissioner; and<br/>
<a id="pl.2.14"></a><var>2.14</var>(3) an increase or decrease in taxable value for commercial-industrial or seasonal <br/>
<a id="pl.2.15"></a><var>2.15</var>residential recreational property reported on the abstracts of tax lists submitted under <br/>
<a id="pl.2.16"></a><var>2.16</var>section 
         <statute_ref>275.29</statute_ref> that was not reported on the abstracts of assessment submitted under <br/>
<a id="pl.2.17"></a><var>2.17</var>section 
         <statute_ref>270C.89</statute_ref> for the same year.<br/>
<a id="pl.2.18"></a><var>2.18</var>    (f) The commissioner may, but need not, make adjustments if the total difference in <br/>
<a id="pl.2.19"></a><var>2.19</var>the tax levied for the year would be less than $100,000.<br/>
<a id="pl.2.20"></a><var>2.20</var><b>EFFECTIVE DATE.</b> This section is effective for taxes payable in 2013 and <br/>
<a id="pl.2.21"></a><var>2.21</var>thereafter.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.2.22"></a><var>2.22</var>    Sec. 2. Minnesota Statutes 2010, section 275.025, subdivision 2, is amended to read:<br/>
<a id="pl.2.23"></a><var>2.23</var>    Subd. 2. <b>Commercial-industrial tax capacity.</b> For the purposes of this section, <br/>
<a id="pl.2.24"></a><var>2.24</var>"commercial-industrial tax capacity" means the tax capacity of all taxable property <br/>
<a id="pl.2.25"></a><var>2.25</var>classified as class 3 or class 5(1) under section 
         <statute_ref>273.13</statute_ref>, except for excluding: (1) the <br/>
<a id="pl.2.26"></a><var>2.26</var>first $150,000 in value of each commercial-industrial property, (2) electric generation <br/>
<a id="pl.2.27"></a><var>2.27</var>attached machinery under class 3, and (3) property described in section 
         <statute_ref>473.625</statute_ref>. County <br/>
<a id="pl.2.28"></a><var>2.28</var>commercial-industrial tax capacity amounts are not adjusted for the captured net tax <br/>
<a id="pl.2.29"></a><var>2.29</var>capacity of a tax increment financing district under section 
         <statute_ref>469.177, subdivision 2</statute_ref>, the <br/>
<a id="pl.2.30"></a><var>2.30</var>net tax capacity of transmission lines deducted from a local government's total net tax <br/>
<a id="pl.2.31"></a><var>2.31</var>capacity under section 
         <statute_ref>273.425</statute_ref>, or fiscal disparities contribution and distribution net <br/>
<a id="pl.2.32"></a><var>2.32</var>tax capacities under chapter 276A or 473F.<br/>
<a id="pl.2.33"></a><var>2.33</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2013 and <br/>
<a id="pl.2.34"></a><var>2.34</var>thereafter.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.3.1"></a><var>3.1</var>    Sec. 3. Minnesota Statutes 2010, section 275.025, subdivision 4, is amended to read:<br/>
<a id="pl.3.2"></a><var>3.2</var>    Subd. 4. <b>Apportionment and</b><b> Levy of state general tax.</b> Ninety-five percent of The <br/>
<a id="pl.3.3"></a><var>3.3</var>state general tax must be levied by applying a uniform rate to all commercial-industrial tax <br/>
<a id="pl.3.4"></a><var>3.4</var>capacity and five percent of the state general tax must be levied by applying a uniform <br/>
<a id="pl.3.5"></a><var>3.5</var>rate to all seasonal residential recreational tax capacity. On or before October 1 each <br/>
<a id="pl.3.6"></a><var>3.6</var>year, the commissioner of revenue shall certify the preliminary state general levy rates to <br/>
<a id="pl.3.7"></a><var>3.7</var>each county auditor that must be used to prepare the notices of proposed property taxes <br/>
<a id="pl.3.8"></a><var>3.8</var>for taxes payable in the following year. By January 1 of each year, the commissioner <br/>
<a id="pl.3.9"></a><var>3.9</var>shall certify the final state general levy rate rates to each county auditor that shall be <br/>
<a id="pl.3.10"></a><var>3.10</var>used in spreading taxes.<br/>
<a id="pl.3.11"></a><var>3.11</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2013 and <br/>
<a id="pl.3.12"></a><var>3.12</var>thereafter.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.3.13"></a><var>3.13</var>    Sec. 4. Minnesota Statutes 2010, section 289A.08, subdivision 3, is amended to read:<br/>
<a id="pl.3.14"></a><var>3.14</var>    Subd. 3. <b>Corporations.</b> (a) A corporation that is subject to the state's jurisdiction to <br/>
<a id="pl.3.15"></a><var>3.15</var>tax under section 
         <statute_ref>290.014, subdivision 5</statute_ref>, must file a return, except that a foreign operating <br/>
<a id="pl.3.16"></a><var>3.16</var>corporation as defined in section 
<statute_ref>290.01, subdivision 6b</statute_ref>, is not required to file a return.<br/>
<a id="pl.3.17"></a><var>3.17</var>(b) Members of a unitary business that are required to file a combined report on one <br/>
<a id="pl.3.18"></a><var>3.18</var>return must designate a member of the unitary business to be responsible for tax matters, <br/>
<a id="pl.3.19"></a><var>3.19</var>including the filing of returns, the payment of taxes, additions to tax, penalties, interest, <br/>
<a id="pl.3.20"></a><var>3.20</var>or any other payment, and for the receipt of refunds of taxes or interest paid in excess of <br/>
<a id="pl.3.21"></a><var>3.21</var>taxes lawfully due. The designated member must be a member of the unitary business that <br/>
<a id="pl.3.22"></a><var>3.22</var>is filing the single combined report and either:<br/>
<a id="pl.3.23"></a><var>3.23</var>(1) a corporation that is subject to the taxes imposed by chapter 290; or<br/>
<a id="pl.3.24"></a><var>3.24</var>(2) a corporation that is not subject to the taxes imposed by chapter 290:<br/>
<a id="pl.3.25"></a><var>3.25</var>(i) Such corporation consents by filing the return as a designated member under this <br/>
<a id="pl.3.26"></a><var>3.26</var>clause to remit taxes, penalties, interest, or additions to tax due from the members of the <br/>
<a id="pl.3.27"></a><var>3.27</var>unitary business subject to tax, and receive refunds or other payments on behalf of other <br/>
<a id="pl.3.28"></a><var>3.28</var>members of the unitary business. The member designated under this clause is a "taxpayer" <br/>
<a id="pl.3.29"></a><var>3.29</var>for the purposes of this chapter and chapter 270C, and is liable for any liability imposed <br/>
<a id="pl.3.30"></a><var>3.30</var>on the unitary business under this chapter and chapter 290.<br/>
<a id="pl.3.31"></a><var>3.31</var>(ii) If the state does not otherwise have the jurisdiction to tax the member designated <br/>
<a id="pl.3.32"></a><var>3.32</var>under this clause, consenting to be the designated member does not create the jurisdiction <br/>
<a id="pl.3.33"></a><var>3.33</var>to impose tax on the designated member, other than as described in item (i).<br/>
<a id="pl.3.34"></a><var>3.34</var>(iii) The member designated under this clause must apply for a business tax account <br/>
<a id="pl.3.35"></a><var>3.35</var>identification number.<br/>
<a id="pl.4.1"></a><var>4.1</var>(c) The commissioner shall adopt rules for the filing of one return on behalf of the <br/>
<a id="pl.4.2"></a><var>4.2</var>members of an affiliated group of corporations that are required to file a combined report. <br/>
<a id="pl.4.3"></a><var>4.3</var>All members of an affiliated group that are required to file a combined report must file one <br/>
<a id="pl.4.4"></a><var>4.4</var>return on behalf of the members of the group under rules adopted by the commissioner.<br/>
<a id="pl.4.5"></a><var>4.5</var>(d) If a corporation claims on a return that it has paid tax in excess of the amount of <br/>
<a id="pl.4.6"></a><var>4.6</var>taxes lawfully due, that corporation must include on that return information necessary for <br/>
<a id="pl.4.7"></a><var>4.7</var>payment of the tax in excess of the amount lawfully due by electronic means.<br/>
<a id="pl.4.8"></a><var>4.8</var><b>EFFECTIVE DATE.</b>This section is effective for returns filed for taxable years <br/>
<a id="pl.4.9"></a><var>4.9</var>beginning after December 31, 2011.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.4.10"></a><var>4.10</var>    Sec. 5. Minnesota Statutes 2010, section 290.01, subdivision 5, is amended to read:<br/>
<a id="pl.4.11"></a><var>4.11</var>    Subd. 5. <b>Domestic corporation.</b> The term "domestic" when applied to a corporation <br/>
<a id="pl.4.12"></a><var>4.12</var>means a corporation:<br/>
<a id="pl.4.13"></a><var>4.13</var>(1) created or organized in the United States, or under the laws of the United States <br/>
<a id="pl.4.14"></a><var>4.14</var>or of any state, the District of Columbia, or any political subdivision of any of the <br/>
<a id="pl.4.15"></a><var>4.15</var>foregoing but not including the Commonwealth of Puerto Rico, or any possession of <br/>
<a id="pl.4.16"></a><var>4.16</var>the United States;<br/>
<a id="pl.4.17"></a><var>4.17</var>(2) which qualifies as a DISC, as defined in section 992(a) of the Internal Revenue <br/>
<a id="pl.4.18"></a><var>4.18</var>Code; or<br/>
<a id="pl.4.19"></a><var>4.19</var>(3) which qualifies as a FSC, as defined in section 922 of the Internal Revenue Code.;<br/>
<a id="pl.4.20"></a><var>4.20</var>    (4) which is incorporated in a tax haven;<br/>
<a id="pl.4.21"></a><var>4.21</var>    (5) which is engaged in activity in a tax haven sufficient for the tax haven to impose <br/>
<a id="pl.4.22"></a><var>4.22</var>a net income tax under United States constitutional standards and section 290.015, and <br/>
<a id="pl.4.23"></a><var>4.23</var>which reports that 20 percent or more of its income is attributable to business in the tax <br/>
<a id="pl.4.24"></a><var>4.24</var>haven; or<br/>
<a id="pl.4.25"></a><var>4.25</var>    (6) which has the average of its property, payroll, and sales factors, as defined under <br/>
<a id="pl.4.26"></a><var>4.26</var>section 290.191, within the 50 states of the United States and the District of Columbia, of <br/>
<a id="pl.4.27"></a><var>4.27</var>20 percent or more.<br/>
<a id="pl.4.28"></a><var>4.28</var><b>EFFECTIVE DATE.</b>This section is effective for returns filed for taxable years <br/>
<a id="pl.4.29"></a><var>4.29</var>beginning after December 31, 2011.<br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.4.30"></a><var>4.30</var>    Sec. 6. Minnesota Statutes 2010, section 290.01, is amended by adding a subdivision <br/>
<a id="pl.4.31"></a><var>4.31</var>to read:<br/>
<a id="pl.4.32"></a><var>4.32</var>    Subd. 5c. <b>Tax haven.</b> (a) "Tax haven" means the following foreign jurisdictions, <br/>
<a id="pl.4.33"></a><var>4.33</var>unless the listing of the jurisdiction does not apply under paragraph (b):<br/>
<a id="pl.5.1"></a><var>5.1</var>(1) Andorra;<br/>
<a id="pl.5.2"></a><var>5.2</var>(2) Anguilla;<br/>
<a id="pl.5.3"></a><var>5.3</var>(3) Antigua and Barbuda;<br/>
<a id="pl.5.4"></a><var>5.4</var>(4) Aruba;<br/>
<a id="pl.5.5"></a><var>5.5</var>(5) Bahamas;<br/>
<a id="pl.5.6"></a><var>5.6</var>(6) Bahrain;<br/>
<a id="pl.5.7"></a><var>5.7</var>(7) Belize;<br/>
<a id="pl.5.8"></a><var>5.8</var>(8) British Virgin Islands;<br/>
<a id="pl.5.9"></a><var>5.9</var>(9) Cayman Islands;<br/>
<a id="pl.5.10"></a><var>5.10</var>(10) Cook Islands;<br/>
<a id="pl.5.11"></a><var>5.11</var>(11) Costa Rica;<br/>
<a id="pl.5.12"></a><var>5.12</var>(12) Dominica;<br/>
<a id="pl.5.13"></a><var>5.13</var>(13) Gibraltar;<br/>
<a id="pl.5.14"></a><var>5.14</var>(14) Grenada;<br/>
<a id="pl.5.15"></a><var>5.15</var>(15) Guernsey-Sark-Alderney;<br/>
<a id="pl.5.16"></a><var>5.16</var>(16) Jersey;<br/>
<a id="pl.5.17"></a><var>5.17</var>(17) Jordan;<br/>
<a id="pl.5.18"></a><var>5.18</var>(18) Lebanon;<br/>
<a id="pl.5.19"></a><var>5.19</var>(19) Liberia;<br/>
<a id="pl.5.20"></a><var>5.20</var>(20) Liechtenstein;<br/>
<a id="pl.5.21"></a><var>5.21</var>(21) Maldives;<br/>
<a id="pl.5.22"></a><var>5.22</var>(22) Marshall Islands;<br/>
<a id="pl.5.23"></a><var>5.23</var>(23) Monaco;<br/>
<a id="pl.5.24"></a><var>5.24</var>(24) Montserrat;<br/>
<a id="pl.5.25"></a><var>5.25</var>(25) Nauru;<br/>
<a id="pl.5.26"></a><var>5.26</var>(26) Netherlands Antilles;<br/>
<a id="pl.5.27"></a><var>5.27</var>(27) Niue;<br/>
<a id="pl.5.28"></a><var>5.28</var>(28) Panama;<br/>
<a id="pl.5.29"></a><var>5.29</var>(29) St. Kitts and Nevis;<br/>
<a id="pl.5.30"></a><var>5.30</var>(30) St. Lucia;<br/>
<a id="pl.5.31"></a><var>5.31</var>(31) St. Vincent and Grenadines;<br/>
<a id="pl.5.32"></a><var>5.32</var>(32) Tonga;<br/>
<a id="pl.5.33"></a><var>5.33</var>(33) Turks and Caicos; and<br/>
<a id="pl.5.34"></a><var>5.34</var>(34) Vanuatu.<br/>
<a id="pl.5.35"></a><var>5.35</var>(b) A foreign jurisdiction's listing under paragraph (a) does not apply to the first <br/>
<a id="pl.5.36"></a><var>5.36</var>taxable year after the United States enters into a tax treaty or other agreement with the <br/>
<a id="pl.6.1"></a><var>6.1</var>foreign jurisdiction that provides for prompt, obligatory, and automatic exchange of <br/>
<a id="pl.6.2"></a><var>6.2</var>information with the United States government relevant to enforcing the provisions of <br/>
<a id="pl.6.3"></a><var>6.3</var>federal tax laws and the treaty or other agreement was in effect for the taxable year.<br/>
<a id="pl.6.4"></a><var>6.4</var><b>EFFECTIVE DATE.</b>This section is effective for returns filed for taxable years <br/>
<a id="pl.6.5"></a><var>6.5</var>beginning after December 31, 2011.<br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.6.6"></a><var>6.6</var>    Sec. 7. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19a, is <br/>
<a id="pl.6.7"></a><var>6.7</var>amended to read:<br/>
<a id="pl.6.8"></a><var>6.8</var>    Subd. 19a. <b>Additions to federal taxable income.</b> For individuals, estates, and <br/>
<a id="pl.6.9"></a><var>6.9</var>trusts, there shall be added to federal taxable income:<br/>
<a id="pl.6.10"></a><var>6.10</var>    (1)(i) interest income on obligations of any state other than Minnesota or a political <br/>
<a id="pl.6.11"></a><var>6.11</var>or governmental subdivision, municipality, or governmental agency or instrumentality <br/>
<a id="pl.6.12"></a><var>6.12</var>of any state other than Minnesota exempt from federal income taxes under the Internal <br/>
<a id="pl.6.13"></a><var>6.13</var>Revenue Code or any other federal statute; and<br/>
<a id="pl.6.14"></a><var>6.14</var>    (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue <br/>
<a id="pl.6.15"></a><var>6.15</var>Code, except:<br/>
<a id="pl.6.16"></a><var>6.16</var>(A) the portion of the exempt-interest dividends exempt from state taxation under <br/>
<a id="pl.6.17"></a><var>6.17</var>the laws of the United States; and<br/>
<a id="pl.6.18"></a><var>6.18</var>(B) the portion of the exempt-interest dividends derived from interest income <br/>
<a id="pl.6.19"></a><var>6.19</var>on obligations of the state of Minnesota or its political or governmental subdivisions, <br/>
<a id="pl.6.20"></a><var>6.20</var>municipalities, governmental agencies or instrumentalities, but only if the portion of the <br/>
<a id="pl.6.21"></a><var>6.21</var>exempt-interest dividends from such Minnesota sources paid to all shareholders represents <br/>
<a id="pl.6.22"></a><var>6.22</var>95 percent or more of the exempt-interest dividends, including any dividends exempt <br/>
<a id="pl.6.23"></a><var>6.23</var>under subitem (A), that are paid by the regulated investment company as defined in section <br/>
<a id="pl.6.24"></a><var>6.24</var>851(a) of the Internal Revenue Code, or the fund of the regulated investment company as <br/>
<a id="pl.6.25"></a><var>6.25</var>defined in section 851(g) of the Internal Revenue Code, making the payment; and<br/>
<a id="pl.6.26"></a><var>6.26</var>    (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal <br/>
<a id="pl.6.27"></a><var>6.27</var>government described in section 7871(c) of the Internal Revenue Code shall be treated as <br/>
<a id="pl.6.28"></a><var>6.28</var>interest income on obligations of the state in which the tribe is located;<br/>
<a id="pl.6.29"></a><var>6.29</var>    (2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid or <br/>
<a id="pl.6.30"></a><var>6.30</var>accrued within the taxable year under this chapter and the amount of taxes based on net <br/>
<a id="pl.6.31"></a><var>6.31</var>income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state <br/>
<a id="pl.6.32"></a><var>6.32</var>or to any province or territory of Canada, to the extent allowed as a deduction under <br/>
<a id="pl.6.33"></a><var>6.33</var>section 63(d) of the Internal Revenue Code, but the addition may not be more than the <br/>
<a id="pl.6.34"></a><var>6.34</var>amount by which the itemized deductions as allowed under section 63(d) of the Internal <br/>
<a id="pl.6.35"></a><var>6.35</var>Revenue Code exceeds the amount of the standard deduction as defined in section 63(c) of <br/>
<a id="pl.7.1"></a><var>7.1</var>the Internal Revenue Code, disregarding the amounts allowed under sections 63(c)(1)(C) <br/>
<a id="pl.7.2"></a><var>7.2</var>and 63(c)(1)(E) of the Internal Revenue Code, minus any addition that would have been <br/>
<a id="pl.7.3"></a><var>7.3</var>required under clause (21) if the taxpayer had claimed the standard deduction, and plus <br/>
<a id="pl.7.4"></a><var>7.4</var>any subtraction allowed under subdivision 19b, clauses (19) and (20). For the purpose of <br/>
<a id="pl.7.5"></a><var>7.5</var>this paragraph, the disallowance of itemized deductions under section 68 of the Internal <br/>
<a id="pl.7.6"></a><var>7.6</var>Revenue Code of 1986, income, sales and use, motor vehicle sales, or excise taxes are <br/>
<a id="pl.7.7"></a><var>7.7</var>the last itemized deductions disallowed;<br/>
<a id="pl.7.8"></a><var>7.8</var>    (3) the capital gain amount of a lump-sum distribution to which the special tax under <br/>
<a id="pl.7.9"></a><var>7.9</var>section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;<br/>
<a id="pl.7.10"></a><var>7.10</var>    (4) the amount of income taxes paid or accrued within the taxable year under this <br/>
<a id="pl.7.11"></a><var>7.11</var>chapter and taxes based on net income paid to any other state or any province or territory <br/>
<a id="pl.7.12"></a><var>7.12</var>of Canada, to the extent allowed as a deduction in determining federal adjusted gross <br/>
<a id="pl.7.13"></a><var>7.13</var>income. For the purpose of this paragraph, income taxes do not include the taxes imposed <br/>
<a id="pl.7.14"></a><var>7.14</var>by sections 
         <statute_ref>290.0922, subdivision 1</statute_ref>, paragraph (b), 
         <statute_ref>290.9727</statute_ref>, 
         <statute_ref>290.9728</statute_ref>, and 
         <statute_ref>290.9729</statute_ref>;<br/>
<a id="pl.7.15"></a><var>7.15</var>    (5) the amount of expense, interest, or taxes disallowed pursuant to section 
         <statute_ref>290.10 <br/>
</statute_ref><a id="pl.7.16"></a><var>7.16</var>other than expenses or interest used in computing net interest income for the subtraction <br/>
<a id="pl.7.17"></a><var>7.17</var>allowed under subdivision 19b, clause (1);<br/>
<a id="pl.7.18"></a><var>7.18</var>    (6) the amount of a partner's pro rata share of net income which does not flow <br/>
<a id="pl.7.19"></a><var>7.19</var>through to the partner because the partnership elected to pay the tax on the income under <br/>
<a id="pl.7.20"></a><var>7.20</var>section 6242(a)(2) of the Internal Revenue Code;<br/>
<a id="pl.7.21"></a><var>7.21</var>    (7) 80 percent of the depreciation deduction allowed under section 168(k) of the <br/>
<a id="pl.7.22"></a><var>7.22</var>Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that <br/>
<a id="pl.7.23"></a><var>7.23</var>in the taxable year generates a deduction for depreciation under section 168(k) and the <br/>
<a id="pl.7.24"></a><var>7.24</var>activity generates a loss for the taxable year that the taxpayer is not allowed to claim for <br/>
<a id="pl.7.25"></a><var>7.25</var>the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is <br/>
<a id="pl.7.26"></a><var>7.26</var>limited to excess of the depreciation claimed by the activity under section 168(k) over the <br/>
<a id="pl.7.27"></a><var>7.27</var>amount of the loss from the activity that is not allowed in the taxable year. In succeeding <br/>
<a id="pl.7.28"></a><var>7.28</var>taxable years when the losses not allowed in the taxable year are allowed, the depreciation <br/>
<a id="pl.7.29"></a><var>7.29</var>under section 168(k) is allowed;<br/>
<a id="pl.7.30"></a><var>7.30</var>    (8) 80 percent of the amount by which the deduction allowed by section 179 of the <br/>
<a id="pl.7.31"></a><var>7.31</var>Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal <br/>
<a id="pl.7.32"></a><var>7.32</var>Revenue Code of 1986, as amended through December 31, 2003;<br/>
<a id="pl.7.33"></a><var>7.33</var>    (9) to the extent deducted in computing federal taxable income, the amount of the <br/>
<a id="pl.7.34"></a><var>7.34</var>deduction allowable under section 199 of the Internal Revenue Code;<br/>
<a id="pl.8.1"></a><var>8.1</var>    (10) for taxable years beginning before January 1, 2013, the exclusion allowed <br/>
<a id="pl.8.2"></a><var>8.2</var>under section 139A of the Internal Revenue Code for federal subsidies for prescription <br/>
<a id="pl.8.3"></a><var>8.3</var>drug plans;<br/>
<a id="pl.8.4"></a><var>8.4</var>(11) the amount of expenses disallowed under section 290.10, subdivision 2;<br/>
<a id="pl.8.5"></a><var>8.5</var>    (12) for taxable years beginning before January 1, 2010, the amount deducted for <br/>
<a id="pl.8.6"></a><var>8.6</var>qualified tuition and related expenses under section 222 of the Internal Revenue Code, to <br/>
<a id="pl.8.7"></a><var>8.7</var>the extent deducted from gross income;<br/>
<a id="pl.8.8"></a><var>8.8</var>    (13) for taxable years beginning before January 1, 2010, the amount deducted for <br/>
<a id="pl.8.9"></a><var>8.9</var>certain expenses of elementary and secondary school teachers under section 62(a)(2)(D) <br/>
<a id="pl.8.10"></a><var>8.10</var>of the Internal Revenue Code, to the extent deducted from gross income;<br/>
<a id="pl.8.11"></a><var>8.11</var>(14) the additional standard deduction for property taxes payable that is allowable <br/>
<a id="pl.8.12"></a><var>8.12</var>under section 63(c)(1)(C) of the Internal Revenue Code;<br/>
<a id="pl.8.13"></a><var>8.13</var>(15) the additional standard deduction for qualified motor vehicle sales taxes <br/>
<a id="pl.8.14"></a><var>8.14</var>allowable under section 63(c)(1)(E) of the Internal Revenue Code;<br/>
<a id="pl.8.15"></a><var>8.15</var>(16) discharge of indebtedness income resulting from reacquisition of business <br/>
<a id="pl.8.16"></a><var>8.16</var>indebtedness and deferred under section 108(i) of the Internal Revenue Code;<br/>
<a id="pl.8.17"></a><var>8.17</var>(17) the amount of unemployment compensation exempt from tax under section <br/>
<a id="pl.8.18"></a><var>8.18</var>85(c) of the Internal Revenue Code;<br/>
<a id="pl.8.19"></a><var>8.19</var>(18) changes to federal taxable income attributable to a net operating loss that the <br/>
<a id="pl.8.20"></a><var>8.20</var>taxpayer elected to carry back for more than two years for federal purposes but for which <br/>
<a id="pl.8.21"></a><var>8.21</var>the losses can be carried back for only two years under section 
         <statute_ref>290.095, subdivision <br/>
</statute_ref><a id="pl.8.22"></a><var>8.22</var>11, paragraph (c);<br/>
<a id="pl.8.23"></a><var>8.23</var>(19) to the extent included in the computation of federal taxable income in taxable <br/>
<a id="pl.8.24"></a><var>8.24</var>years beginning after December 31, 2010, the amount of disallowed itemized deductions, <br/>
<a id="pl.8.25"></a><var>8.25</var>but the amount of disallowed itemized deductions plus the addition required under clause <br/>
<a id="pl.8.26"></a><var>8.26</var>(2) may not be more than the amount by which the itemized deductions as allowed under <br/>
<a id="pl.8.27"></a><var>8.27</var>section 63(d) of the Internal Revenue Code exceeds the amount of the standard deduction <br/>
<a id="pl.8.28"></a><var>8.28</var>as defined in section 63(c) of the Internal Revenue Code, disregarding the amounts <br/>
<a id="pl.8.29"></a><var>8.29</var>allowed under sections 63(c)(1)(C) and 63(c)(1)(E) of the Internal Revenue Code, and <br/>
<a id="pl.8.30"></a><var>8.30</var>reduced by any addition that would have been required under clause (21) if the taxpayer <br/>
<a id="pl.8.31"></a><var>8.31</var>had claimed the standard deduction:<br/>
<a id="pl.8.32"></a><var>8.32</var>(i) the amount of disallowed itemized deductions is equal to the lesser of:<br/>
<a id="pl.8.33"></a><var>8.33</var>(A) three percent of the excess of the taxpayer's federal adjusted gross income <br/>
<a id="pl.8.34"></a><var>8.34</var>over the applicable amount; or<br/>
<a id="pl.8.35"></a><var>8.35</var>(B) 80 percent of the amount of the itemized deductions otherwise allowable to the <br/>
<a id="pl.8.36"></a><var>8.36</var>taxpayer under the Internal Revenue Code for the taxable year;<br/>
<a id="pl.9.1"></a><var>9.1</var>(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a <br/>
<a id="pl.9.2"></a><var>9.2</var>married individual filing a separate return. Each dollar amount shall be increased by <br/>
<a id="pl.9.3"></a><var>9.3</var>an amount equal to:<br/>
<a id="pl.9.4"></a><var>9.4</var>(A) such dollar amount, multiplied by<br/>
<a id="pl.9.5"></a><var>9.5</var>(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal <br/>
<a id="pl.9.6"></a><var>9.6</var>Revenue Code for the calendar year in which the taxable year begins, by substituting <br/>
<a id="pl.9.7"></a><var>9.7</var>"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof;<br/>
<a id="pl.9.8"></a><var>9.8</var>(iii) the term "itemized deductions" does not include:<br/>
<a id="pl.9.9"></a><var>9.9</var>(A) the deduction for medical expenses under section 213 of the Internal Revenue <br/>
<a id="pl.9.10"></a><var>9.10</var>Code;<br/>
<a id="pl.9.11"></a><var>9.11</var>(B) any deduction for investment interest as defined in section 163(d) of the Internal <br/>
<a id="pl.9.12"></a><var>9.12</var>Revenue Code; and<br/>
<a id="pl.9.13"></a><var>9.13</var>(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or <br/>
<a id="pl.9.14"></a><var>9.14</var>theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue <br/>
<a id="pl.9.15"></a><var>9.15</var>Code or for losses described in section 165(d) of the Internal Revenue Code;<br/>
<a id="pl.9.16"></a><var>9.16</var>(20) to the extent included in federal taxable income in taxable years beginning after <br/>
<a id="pl.9.17"></a><var>9.17</var>December 31, 2010, the amount of disallowed personal exemptions for taxpayers with <br/>
<a id="pl.9.18"></a><var>9.18</var>federal adjusted gross income over the threshold amount:<br/>
<a id="pl.9.19"></a><var>9.19</var>(i) the disallowed personal exemption amount is equal to the dollar amount of the <br/>
<a id="pl.9.20"></a><var>9.20</var>personal exemptions claimed by the taxpayer in the computation of federal taxable income <br/>
<a id="pl.9.21"></a><var>9.21</var>multiplied by the applicable percentage;<br/>
<a id="pl.9.22"></a><var>9.22</var>(ii) "applicable percentage" means two percentage points for each $2,500 (or <br/>
<a id="pl.9.23"></a><var>9.23</var>fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable <br/>
<a id="pl.9.24"></a><var>9.24</var>year exceeds the threshold amount. In the case of a married individual filing a separate <br/>
<a id="pl.9.25"></a><var>9.25</var>return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In <br/>
<a id="pl.9.26"></a><var>9.26</var>no event shall the applicable percentage exceed 100 percent;<br/>
<a id="pl.9.27"></a><var>9.27</var>(iii) the term "threshold amount" means:<br/>
<a id="pl.9.28"></a><var>9.28</var>(A) $150,000 in the case of a joint return or a surviving spouse;<br/>
<a id="pl.9.29"></a><var>9.29</var>(B) $125,000 in the case of a head of a household;<br/>
<a id="pl.9.30"></a><var>9.30</var>(C) $100,000 in the case of an individual who is not married and who is not a <br/>
<a id="pl.9.31"></a><var>9.31</var>surviving spouse or head of a household; and<br/>
<a id="pl.9.32"></a><var>9.32</var>(D) $75,000 in the case of a married individual filing a separate return; and<br/>
<a id="pl.9.33"></a><var>9.33</var>(iv) the thresholds shall be increased by an amount equal to:<br/>
<a id="pl.9.34"></a><var>9.34</var>(A) such dollar amount, multiplied by<br/>
<a id="pl.10.1"></a><var>10.1</var>(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal <br/>
<a id="pl.10.2"></a><var>10.2</var>Revenue Code for the calendar year in which the taxable year begins, by substituting <br/>
<a id="pl.10.3"></a><var>10.3</var>"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; and<br/>
<a id="pl.10.4"></a><var>10.4</var>(21) to the extent deducted in the computation of federal taxable income, for <br/>
<a id="pl.10.5"></a><var>10.5</var>taxable years beginning after December 31, 2010, and before January 1, 2013 2012, of <br/>
<a id="pl.10.6"></a><var>10.6</var>the difference between the standard deduction allowed under section 63(c) of the Internal <br/>
<a id="pl.10.7"></a><var>10.7</var>Revenue Code and the standard deduction allowed for 2011 and 2012 under the Internal <br/>
<a id="pl.10.8"></a><var>10.8</var>Revenue Code as amended through December 1, 2010.<br/>
<a id="pl.10.9"></a><var>10.9</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.10.10"></a><var>10.10</var>December 31, 2011.<br/>
<br/>
<a id="bill.0.8.0"></a><a id="pl.10.11"></a><var>10.11</var>    Sec. 8. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19b, is <br/>
<a id="pl.10.12"></a><var>10.12</var>amended to read:<br/>
<a id="pl.10.13"></a><var>10.13</var>    Subd. 19b. <b>Subtractions from federal taxable income.</b> For individuals, estates, <br/>
<a id="pl.10.14"></a><var>10.14</var>and trusts, there shall be subtracted from federal taxable income:<br/>
<a id="pl.10.15"></a><var>10.15</var>    (1) net interest income on obligations of any authority, commission, or <br/>
<a id="pl.10.16"></a><var>10.16</var>instrumentality of the United States to the extent includable in taxable income for federal <br/>
<a id="pl.10.17"></a><var>10.17</var>income tax purposes but exempt from state income tax under the laws of the United States;<br/>
<a id="pl.10.18"></a><var>10.18</var>    (2) if included in federal taxable income, the amount of any overpayment of income <br/>
<a id="pl.10.19"></a><var>10.19</var>tax to Minnesota or to any other state, for any previous taxable year, whether the amount <br/>
<a id="pl.10.20"></a><var>10.20</var>is received as a refund or as a credit to another taxable year's income tax liability;<br/>
<a id="pl.10.21"></a><var>10.21</var>    (3) the amount paid to others, less the amount used to claim the credit allowed under <br/>
<a id="pl.10.22"></a><var>10.22</var>section 
         <statute_ref>290.0674</statute_ref>, not to exceed $1,625 for each qualifying child in grades kindergarten <br/>
<a id="pl.10.23"></a><var>10.23</var>to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and <br/>
<a id="pl.10.24"></a><var>10.24</var>transportation of each qualifying child in attending an elementary or secondary school <br/>
<a id="pl.10.25"></a><var>10.25</var>situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a <br/>
<a id="pl.10.26"></a><var>10.26</var>resident of this state may legally fulfill the state's compulsory attendance laws, which <br/>
<a id="pl.10.27"></a><var>10.27</var>is not operated for profit, and which adheres to the provisions of the Civil Rights Act <br/>
<a id="pl.10.28"></a><var>10.28</var>of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or <br/>
<a id="pl.10.29"></a><var>10.29</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.10.30"></a><var>10.30</var>"textbooks" includes books and other instructional materials and equipment purchased <br/>
<a id="pl.10.31"></a><var>10.31</var>or leased for use in elementary and secondary schools in teaching only those subjects <br/>
<a id="pl.10.32"></a><var>10.32</var>legally and commonly taught in public elementary and secondary schools in this state. <br/>
<a id="pl.10.33"></a><var>10.33</var>Equipment expenses qualifying for deduction includes expenses as defined and limited in <br/>
<a id="pl.10.34"></a><var>10.34</var>section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (3). "Textbooks" does not include instructional <br/>
<a id="pl.10.35"></a><var>10.35</var>books and materials used in the teaching of religious tenets, doctrines, or worship, the <br/>
<a id="pl.11.1"></a><var>11.1</var>purpose of which is to instill such tenets, doctrines, or worship, nor does it include books <br/>
<a id="pl.11.2"></a><var>11.2</var>or materials for, or transportation to, extracurricular activities including sporting events, <br/>
<a id="pl.11.3"></a><var>11.3</var>musical or dramatic events, speech activities, driver's education, or similar programs. No <br/>
<a id="pl.11.4"></a><var>11.4</var>deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or <br/>
<a id="pl.11.5"></a><var>11.5</var>the qualifying child's vehicle to provide such transportation for a qualifying child. For <br/>
<a id="pl.11.6"></a><var>11.6</var>purposes of the subtraction provided by this clause, "qualifying child" has the meaning <br/>
<a id="pl.11.7"></a><var>11.7</var>given in section 32(c)(3) of the Internal Revenue Code;<br/>
<a id="pl.11.8"></a><var>11.8</var>    (4) income as provided under section 
         <statute_ref>290.0802</statute_ref>;<br/>
<a id="pl.11.9"></a><var>11.9</var>    (5) to the extent included in federal adjusted gross income, income realized on <br/>
<a id="pl.11.10"></a><var>11.10</var>disposition of property exempt from tax under section 
         <statute_ref>290.491</statute_ref>;<br/>
<a id="pl.11.11"></a><var>11.11</var>    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) <br/>
<a id="pl.11.12"></a><var>11.12</var>of the Internal Revenue Code in determining federal taxable income by an individual <br/>
<a id="pl.11.13"></a><var>11.13</var>who does not itemize deductions for federal income tax purposes for the taxable year, an <br/>
<a id="pl.11.14"></a><var>11.14</var>amount equal to 50 percent of the excess of charitable contributions over $500 allowable <br/>
<a id="pl.11.15"></a><var>11.15</var>as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, <br/>
<a id="pl.11.16"></a><var>11.16</var>under the provisions of Public Law 109-1 and Public Law 111-126;<br/>
<a id="pl.11.17"></a><var>11.17</var>    (7) for individuals who are allowed a federal foreign tax credit for taxes that do not <br/>
<a id="pl.11.18"></a><var>11.18</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.11.19"></a><var>11.19</var>of subnational foreign taxes for the taxable year, but not to exceed the total subnational <br/>
<a id="pl.11.20"></a><var>11.20</var>foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, <br/>
<a id="pl.11.21"></a><var>11.21</var>"federal foreign tax credit" means the credit allowed under section 27 of the Internal <br/>
<a id="pl.11.22"></a><var>11.22</var>Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed <br/>
<a id="pl.11.23"></a><var>11.23</var>under section 904(c) of the Internal Revenue Code minus national level foreign taxes to <br/>
<a id="pl.11.24"></a><var>11.24</var>the extent they exceed the federal foreign tax credit;<br/>
<a id="pl.11.25"></a><var>11.25</var>    (8) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.11.26"></a><var>11.26</var>addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case <br/>
<a id="pl.11.27"></a><var>11.27</var>of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth <br/>
<a id="pl.11.28"></a><var>11.28</var>of the delayed depreciation. For purposes of this clause, "delayed depreciation" means <br/>
<a id="pl.11.29"></a><var>11.29</var>the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or <br/>
<a id="pl.11.30"></a><var>11.30</var>subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the <br/>
<a id="pl.11.31"></a><var>11.31</var>positive value of any net operating loss under section 172 of the Internal Revenue Code <br/>
<a id="pl.11.32"></a><var>11.32</var>generated for the tax year of the addition. The resulting delayed depreciation cannot be <br/>
<a id="pl.11.33"></a><var>11.33</var>less than zero;<br/>
<a id="pl.11.34"></a><var>11.34</var>    (9) job opportunity building zone income as provided under section 
         <statute_ref>469.316</statute_ref>;<br/>
<a id="pl.11.35"></a><var>11.35</var>    (10) to the extent included in federal taxable income, the amount of compensation <br/>
<a id="pl.11.36"></a><var>11.36</var>paid to members of the Minnesota National Guard or other reserve components of the <br/>
<a id="pl.12.1"></a><var>12.1</var>United States military for active service, excluding compensation for services performed <br/>
<a id="pl.12.2"></a><var>12.2</var>under the Active Guard Reserve (AGR) program. For purposes of this clause, "active <br/>
<a id="pl.12.3"></a><var>12.3</var>service" means (i) state active service as defined in section 
         <statute_ref>190.05, subdivision 5a</statute_ref>, clause <br/>
<a id="pl.12.4"></a><var>12.4</var>(1); or (ii) federally funded state active service as defined in section 
         <statute_ref>190.05, subdivision <br/>
<a id="pl.12.5"></a><var>12.5</var>5b
         </statute_ref>, but "active service" excludes service performed in accordance with section 
         <statute_ref>190.08, <br/>
<a id="pl.12.6"></a><var>12.6</var>subdivision 3
         </statute_ref>;<br/>
<a id="pl.12.7"></a><var>12.7</var>    (11) to the extent included in federal taxable income, the amount of compensation <br/>
<a id="pl.12.8"></a><var>12.8</var>paid to Minnesota residents who are members of the armed forces of the United States <br/>
<a id="pl.12.9"></a><var>12.9</var>or United Nations for active duty performed under United States Code, title 10; or the <br/>
<a id="pl.12.10"></a><var>12.10</var>authority of the United Nations;<br/>
<a id="pl.12.11"></a><var>12.11</var>    (12) an amount, not to exceed $10,000, equal to qualified expenses related to a <br/>
<a id="pl.12.12"></a><var>12.12</var>qualified donor's donation, while living, of one or more of the qualified donor's organs <br/>
<a id="pl.12.13"></a><var>12.13</var>to another person for human organ transplantation. For purposes of this clause, "organ" <br/>
<a id="pl.12.14"></a><var>12.14</var>means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; <br/>
<a id="pl.12.15"></a><var>12.15</var>"human organ transplantation" means the medical procedure by which transfer of a human <br/>
<a id="pl.12.16"></a><var>12.16</var>organ is made from the body of one person to the body of another person; "qualified <br/>
<a id="pl.12.17"></a><var>12.17</var>expenses" means unreimbursed expenses for both the individual and the qualified donor <br/>
<a id="pl.12.18"></a><var>12.18</var>for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses <br/>
<a id="pl.12.19"></a><var>12.19</var>may be subtracted under this clause only once; and "qualified donor" means the individual <br/>
<a id="pl.12.20"></a><var>12.20</var>or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An <br/>
<a id="pl.12.21"></a><var>12.21</var>individual may claim the subtraction in this clause for each instance of organ donation for <br/>
<a id="pl.12.22"></a><var>12.22</var>transplantation during the taxable year in which the qualified expenses occur;<br/>
<a id="pl.12.23"></a><var>12.23</var>    (13) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.12.24"></a><var>12.24</var>addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a <br/>
<a id="pl.12.25"></a><var>12.25</var>shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the <br/>
<a id="pl.12.26"></a><var>12.26</var>addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the <br/>
<a id="pl.12.27"></a><var>12.27</var>case of a shareholder of a corporation that is an S corporation, minus the positive value of <br/>
<a id="pl.12.28"></a><var>12.28</var>any net operating loss under section 172 of the Internal Revenue Code generated for the <br/>
<a id="pl.12.29"></a><var>12.29</var>tax year of the addition. If the net operating loss exceeds the addition for the tax year, a <br/>
<a id="pl.12.30"></a><var>12.30</var>subtraction is not allowed under this clause;<br/>
<a id="pl.12.31"></a><var>12.31</var>    (14) to the extent included in the federal taxable income of a nonresident of <br/>
<a id="pl.12.32"></a><var>12.32</var>Minnesota, compensation paid to a service member as defined in United States Code, title <br/>
<a id="pl.12.33"></a><var>12.33</var>10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief <br/>
<a id="pl.12.34"></a><var>12.34</var>Act, Public Law 108-189, section 101(2);<br/>
<a id="pl.12.35"></a><var>12.35</var>    (15) international economic development zone income as provided under section <br/>
<statute_ref><a id="pl.12.36"></a><var>12.36</var>469.325
         </statute_ref>;<br/>
<a id="pl.13.1"></a><var>13.1</var>    (16) to the extent included in federal taxable income, the amount of national service <br/>
<a id="pl.13.2"></a><var>13.2</var>educational awards received from the National Service Trust under United States Code, <br/>
<a id="pl.13.3"></a><var>13.3</var>title 42, sections 12601 to 12604, for service in an approved Americorps National Service <br/>
<a id="pl.13.4"></a><var>13.4</var>program;<br/>
<a id="pl.13.5"></a><var>13.5</var>(17) to the extent included in federal taxable income, discharge of indebtedness <br/>
<a id="pl.13.6"></a><var>13.6</var>income resulting from reacquisition of business indebtedness included in federal taxable <br/>
<a id="pl.13.7"></a><var>13.7</var>income under section 108(i) of the Internal Revenue Code. This subtraction applies only <br/>
<a id="pl.13.8"></a><var>13.8</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.13.9"></a><var>13.9</var>addition under section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (16); and<br/>
<a id="pl.13.10"></a><var>13.10</var>(18) the amount of the net operating loss allowed under section 
         <statute_ref>290.095, subdivision <br/>
</statute_ref><a id="pl.13.11"></a><var>13.11</var>11, paragraph (c).;<br/>
<a id="pl.13.12"></a><var>13.12</var>(19) for taxable years beginning after December 31, 2012, for married couples <br/>
<a id="pl.13.13"></a><var>13.13</var>filing joint returns who claimed the standard deduction under section 63(c) of the Internal <br/>
<a id="pl.13.14"></a><var>13.14</var>Revenue Code, an amount equal to the difference between (i) twice the standard deduction <br/>
<a id="pl.13.15"></a><var>13.15</var>allowed for the taxable year under section 63(c) of the Internal Revenue Code for single <br/>
<a id="pl.13.16"></a><var>13.16</var>filers and (ii) the standard deduction allowed for the taxable year under section 63(c) of <br/>
<a id="pl.13.17"></a><var>13.17</var>the Internal Revenue Code for married couples filing joint returns; and<br/>
<a id="pl.13.18"></a><var>13.18</var>(20) for taxable years beginning after December 31, 2012, for married couples filing <br/>
<a id="pl.13.19"></a><var>13.19</var>separate returns who claimed the standard deduction under section 63(c) of the Internal <br/>
<a id="pl.13.20"></a><var>13.20</var>Revenue Code, an amount equal to the difference between (i) the standard deduction <br/>
<a id="pl.13.21"></a><var>13.21</var>allowed for the taxable year under section 63(c) of the Internal Revenue Code for single <br/>
<a id="pl.13.22"></a><var>13.22</var>filers and (ii) the standard deduction allowed for the taxable year under section 63(c) of <br/>
<a id="pl.13.23"></a><var>13.23</var>the Internal Revenue Code for married couples filing separate returns.<br/>
<a id="pl.13.24"></a><var>13.24</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.13.25"></a><var>13.25</var>December 31, 2011.<br/>
<br/>
<a id="bill.0.9.0"></a><a id="pl.13.26"></a><var>13.26</var>    Sec. 9. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19c, is <br/>
<a id="pl.13.27"></a><var>13.27</var>amended to read:<br/>
<a id="pl.13.28"></a><var>13.28</var>    Subd. 19c. <b>Corporations; additions to federal taxable income.</b> For corporations, <br/>
<a id="pl.13.29"></a><var>13.29</var>there shall be added to federal taxable income:<br/>
<a id="pl.13.30"></a><var>13.30</var>    (1) the amount of any deduction taken for federal income tax purposes for income, <br/>
<a id="pl.13.31"></a><var>13.31</var>excise, or franchise taxes based on net income or related minimum taxes, including but not <br/>
<a id="pl.13.32"></a><var>13.32</var>limited to the tax imposed under section 
         <statute_ref>290.0922</statute_ref>, paid by the corporation to Minnesota, <br/>
<a id="pl.13.33"></a><var>13.33</var>another state, a political subdivision of another state, the District of Columbia, or any <br/>
<a id="pl.13.34"></a><var>13.34</var>foreign country or possession of the United States;<br/>
<a id="pl.14.1"></a><var>14.1</var>    (2) interest not subject to federal tax upon obligations of: the United States, its <br/>
<a id="pl.14.2"></a><var>14.2</var>possessions, its agencies, or its instrumentalities; the state of Minnesota or any other <br/>
<a id="pl.14.3"></a><var>14.3</var>state, any of its political or governmental subdivisions, any of its municipalities, or any <br/>
<a id="pl.14.4"></a><var>14.4</var>of its governmental agencies or instrumentalities; the District of Columbia; or Indian <br/>
<a id="pl.14.5"></a><var>14.5</var>tribal governments;<br/>
<a id="pl.14.6"></a><var>14.6</var>    (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal <br/>
<a id="pl.14.7"></a><var>14.7</var>Revenue Code;<br/>
<a id="pl.14.8"></a><var>14.8</var>    (4) the amount of any net operating loss deduction taken for federal income tax <br/>
<a id="pl.14.9"></a><var>14.9</var>purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss <br/>
<a id="pl.14.10"></a><var>14.10</var>deduction under section 810 of the Internal Revenue Code;<br/>
<a id="pl.14.11"></a><var>14.11</var>    (5) the amount of any special deductions taken for federal income tax purposes <br/>
<a id="pl.14.12"></a><var>14.12</var>under sections 241 to 247 and 965 of the Internal Revenue Code;<br/>
<a id="pl.14.13"></a><var>14.13</var>    (6) losses from the business of mining, as defined in section 
         <statute_ref>290.05, subdivision 1</statute_ref>, <br/>
<a id="pl.14.14"></a><var>14.14</var>clause (a), that are not subject to Minnesota income tax;<br/>
<a id="pl.14.15"></a><var>14.15</var>    (7) the amount of any capital losses deducted for federal income tax purposes under <br/>
<a id="pl.14.16"></a><var>14.16</var>sections 1211 and 1212 of the Internal Revenue Code;<br/>
<a id="pl.14.17"></a><var>14.17</var>    (8) the exempt foreign trade income of a foreign sales corporation under sections <br/>
<a id="pl.14.18"></a><var>14.18</var>921(a) and 291 of the Internal Revenue Code;<br/>
<a id="pl.14.19"></a><var>14.19</var>    (9) the amount of percentage depletion deducted under sections 611 through 614 and <br/>
<a id="pl.14.20"></a><var>14.20</var>291 of the Internal Revenue Code;<br/>
<a id="pl.14.21"></a><var>14.21</var>    (10) for certified pollution control facilities placed in service in a taxable year <br/>
<a id="pl.14.22"></a><var>14.22</var>beginning before December 31, 1986, and for which amortization deductions were elected <br/>
<a id="pl.14.23"></a><var>14.23</var>under section 169 of the Internal Revenue Code of 1954, as amended through December <br/>
<a id="pl.14.24"></a><var>14.24</var>31, 1985, the amount of the amortization deduction allowed in computing federal taxable <br/>
<a id="pl.14.25"></a><var>14.25</var>income for those facilities;<br/>
<a id="pl.14.26"></a><var>14.26</var>    (11) the amount of any deemed dividend from a foreign operating corporation <br/>
<a id="pl.14.27"></a><var>14.27</var>determined pursuant to section 
<statute_ref>290.17, subdivision 4</statute_ref>, paragraph (g). The deemed dividend <br/>
<a id="pl.14.28"></a><var>14.28</var>shall be reduced by the amount of the addition to income required by clauses (20), (21), <br/>
<a id="pl.14.29"></a><var>14.29</var>(22), and (23);<br/>
<a id="pl.14.30"></a><var>14.30</var>    (12) (11) the amount of a partner's pro rata share of net income which does not flow <br/>
<a id="pl.14.31"></a><var>14.31</var>through to the partner because the partnership elected to pay the tax on the income under <br/>
<a id="pl.14.32"></a><var>14.32</var>section 6242(a)(2) of the Internal Revenue Code;<br/>
<a id="pl.14.33"></a><var>14.33</var>    (13) (12) the amount of net income excluded under section 114 of the Internal <br/>
<a id="pl.14.34"></a><var>14.34</var>Revenue Code;<br/>
<a id="pl.15.1"></a><var>15.1</var>    (14) (13) any increase in subpart F income, as defined in section 952(a) of the <br/>
<a id="pl.15.2"></a><var>15.2</var>Internal Revenue Code, for the taxable year when subpart F income is calculated without <br/>
<a id="pl.15.3"></a><var>15.3</var>regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;<br/>
<a id="pl.15.4"></a><var>15.4</var>    (15) (14) 80 percent of the depreciation deduction allowed under section <br/>
<a id="pl.15.5"></a><var>15.5</var>168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if <br/>
<a id="pl.15.6"></a><var>15.6</var>the taxpayer has an activity that in the taxable year generates a deduction for depreciation <br/>
<a id="pl.15.7"></a><var>15.7</var>under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable <br/>
<a id="pl.15.8"></a><var>15.8</var>year that the taxpayer is not allowed to claim for the taxable year, "the depreciation <br/>
<a id="pl.15.9"></a><var>15.9</var>allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess <br/>
<a id="pl.15.10"></a><var>15.10</var>of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) <br/>
<a id="pl.15.11"></a><var>15.11</var>over the amount of the loss from the activity that is not allowed in the taxable year. In <br/>
<a id="pl.15.12"></a><var>15.12</var>succeeding taxable years when the losses not allowed in the taxable year are allowed, the <br/>
<a id="pl.15.13"></a><var>15.13</var>depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;<br/>
<a id="pl.15.14"></a><var>15.14</var>    (16) (15) 80 percent of the amount by which the deduction allowed by section 179 of <br/>
<a id="pl.15.15"></a><var>15.15</var>the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal <br/>
<a id="pl.15.16"></a><var>15.16</var>Revenue Code of 1986, as amended through December 31, 2003;<br/>
<a id="pl.15.17"></a><var>15.17</var>    (17) (16) to the extent deducted in computing federal taxable income, the amount of <br/>
<a id="pl.15.18"></a><var>15.18</var>the deduction allowable under section 199 of the Internal Revenue Code;<br/>
<a id="pl.15.19"></a><var>15.19</var>    (18) (17) for taxable years beginning before January 1, 2013, the exclusion allowed <br/>
<a id="pl.15.20"></a><var>15.20</var>under section 139A of the Internal Revenue Code for federal subsidies for prescription <br/>
<a id="pl.15.21"></a><var>15.21</var>drug plans;<br/>
<a id="pl.15.22"></a><var>15.22</var>    (19) (18) the amount of expenses disallowed under section 
         <statute_ref>290.10, subdivision 2</statute_ref>;<br/>
<a id="pl.15.23"></a><var>15.23</var>    (20) an amount equal to the interest and intangible expenses, losses, and costs paid, <br/>
<a id="pl.15.24"></a><var>15.24</var>accrued, or incurred by any member of the taxpayer's unitary group to or for the benefit <br/>
<a id="pl.15.25"></a><var>15.25</var>of a corporation that is a member of the taxpayer's unitary business group that qualifies <br/>
<a id="pl.15.26"></a><var>15.26</var>as a foreign operating corporation. For purposes of this clause, intangible expenses and <br/>
<a id="pl.15.27"></a><var>15.27</var>costs include:<br/>
<a id="pl.15.28"></a><var>15.28</var>    (i) expenses, losses, and costs for, or related to, the direct or indirect acquisition, <br/>
<a id="pl.15.29"></a><var>15.29</var>use, maintenance or management, ownership, sale, exchange, or any other disposition of <br/>
<a id="pl.15.30"></a><var>15.30</var>intangible property;<br/>
<a id="pl.15.31"></a><var>15.31</var>    (ii) losses incurred, directly or indirectly, from factoring transactions or discounting <br/>
<a id="pl.15.32"></a><var>15.32</var>transactions;<br/>
<a id="pl.15.33"></a><var>15.33</var>    (iii) royalty, patent, technical, and copyright fees;<br/>
<a id="pl.15.34"></a><var>15.34</var>    (iv) licensing fees; and<br/>
<a id="pl.15.35"></a><var>15.35</var>    (v) other similar expenses and costs.<br/>
<a id="pl.16.1"></a><var>16.1</var>For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent <br/>
<a id="pl.16.2"></a><var>16.2</var>applications, trade names, trademarks, service marks, copyrights, mask works, trade <br/>
<a id="pl.16.3"></a><var>16.3</var>secrets, and similar types of intangible assets.<br/>
<a id="pl.16.4"></a><var>16.4</var>This clause does not apply to any item of interest or intangible expenses or costs paid, <br/>
<a id="pl.16.5"></a><var>16.5</var>accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect <br/>
<a id="pl.16.6"></a><var>16.6</var>to such item of income to the extent that the income to the foreign operating corporation <br/>
<a id="pl.16.7"></a><var>16.7</var>is income from sources without the United States as defined in subtitle A, chapter 1, <br/>
<a id="pl.16.8"></a><var>16.8</var>subchapter N, part 1, of the Internal Revenue Code;<br/>
<a id="pl.16.9"></a><var>16.9</var>    (21) except as already included in the taxpayer's taxable income pursuant to clause <br/>
<a id="pl.16.10"></a><var>16.10</var>(20), any interest income and income generated from intangible property received or <br/>
<a id="pl.16.11"></a><var>16.11</var>accrued by a foreign operating corporation that is a member of the taxpayer's unitary <br/>
<a id="pl.16.12"></a><var>16.12</var>group. For purposes of this clause, income generated from intangible property includes:<br/>
<a id="pl.16.13"></a><var>16.13</var>    (i) income related to the direct or indirect acquisition, use, maintenance or <br/>
<a id="pl.16.14"></a><var>16.14</var>management, ownership, sale, exchange, or any other disposition of intangible property;<br/>
<a id="pl.16.15"></a><var>16.15</var>    (ii) income from factoring transactions or discounting transactions;<br/>
<a id="pl.16.16"></a><var>16.16</var>    (iii) royalty, patent, technical, and copyright fees;<br/>
<a id="pl.16.17"></a><var>16.17</var>    (iv) licensing fees; and<br/>
<a id="pl.16.18"></a><var>16.18</var>    (v) other similar income.<br/>
<a id="pl.16.19"></a><var>16.19</var>For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent <br/>
<a id="pl.16.20"></a><var>16.20</var>applications, trade names, trademarks, service marks, copyrights, mask works, trade <br/>
<a id="pl.16.21"></a><var>16.21</var>secrets, and similar types of intangible assets.<br/>
<a id="pl.16.22"></a><var>16.22</var>This clause does not apply to any item of interest or intangible income received or accrued <br/>
<a id="pl.16.23"></a><var>16.23</var>by a foreign operating corporation with respect to such item of income to the extent that <br/>
<a id="pl.16.24"></a><var>16.24</var>the income is income from sources without the United States as defined in subtitle A, <br/>
<a id="pl.16.25"></a><var>16.25</var>chapter 1, subchapter N, part 1, of the Internal Revenue Code;<br/>
<a id="pl.16.26"></a><var>16.26</var>    (22) the dividends attributable to the income of a foreign operating corporation that <br/>
<a id="pl.16.27"></a><var>16.27</var>is a member of the taxpayer's unitary group in an amount that is equal to the dividends <br/>
<a id="pl.16.28"></a><var>16.28</var>paid deduction of a real estate investment trust under section 561(a) of the Internal <br/>
<a id="pl.16.29"></a><var>16.29</var>Revenue Code for amounts paid or accrued by the real estate investment trust to the <br/>
<a id="pl.16.30"></a><var>16.30</var>foreign operating corporation;<br/>
<a id="pl.16.31"></a><var>16.31</var>    (23) the income of a foreign operating corporation that is a member of the taxpayer's <br/>
<a id="pl.16.32"></a><var>16.32</var>unitary group in an amount that is equal to gains derived from the sale of real or personal <br/>
<a id="pl.16.33"></a><var>16.33</var>property located in the United States;<br/>
<a id="pl.17.1"></a><var>17.1</var>    (24) (19) for taxable years beginning before January 1, 2010, the additional amount <br/>
<a id="pl.17.2"></a><var>17.2</var>allowed as a deduction for donation of computer technology and equipment under section <br/>
<a id="pl.17.3"></a><var>17.3</var>170(e)(6) of the Internal Revenue Code, to the extent deducted from taxable income; and<br/>
<a id="pl.17.4"></a><var>17.4</var>(25) (20) discharge of indebtedness income resulting from reacquisition of business <br/>
<a id="pl.17.5"></a><var>17.5</var>indebtedness and deferred under section 108(i) of the Internal Revenue Code.<br/>
<a id="pl.17.6"></a><var>17.6</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.17.7"></a><var>17.7</var>December 31, 2011.<br/>
<br/>
<a id="bill.0.10.0"></a><a id="pl.17.8"></a><var>17.8</var>    Sec. 10. Minnesota Statutes 2010, section 290.01, subdivision 19d, is amended to read:<br/>
<a id="pl.17.9"></a><var>17.9</var>    Subd. 19d. <b>Corporations; modifications decreasing federal taxable income.</b> For <br/>
<a id="pl.17.10"></a><var>17.10</var>corporations, there shall be subtracted from federal taxable income after the increases <br/>
<a id="pl.17.11"></a><var>17.11</var>provided in subdivision 19c:<br/>
<a id="pl.17.12"></a><var>17.12</var>    (1) the amount of foreign dividend gross-up added to gross income for federal <br/>
<a id="pl.17.13"></a><var>17.13</var>income tax purposes under section 78 of the Internal Revenue Code;<br/>
<a id="pl.17.14"></a><var>17.14</var>    (2) the amount of salary expense not allowed for federal income tax purposes due to <br/>
<a id="pl.17.15"></a><var>17.15</var>claiming the work opportunity credit under section 51 of the Internal Revenue Code;<br/>
<a id="pl.17.16"></a><var>17.16</var>    (3) any dividend (not including any distribution in liquidation) paid within the <br/>
<a id="pl.17.17"></a><var>17.17</var>taxable year by a national or state bank to the United States, or to any instrumentality of <br/>
<a id="pl.17.18"></a><var>17.18</var>the United States exempt from federal income taxes, on the preferred stock of the bank <br/>
<a id="pl.17.19"></a><var>17.19</var>owned by the United States or the instrumentality;<br/>
<a id="pl.17.20"></a><var>17.20</var>    (4) amounts disallowed for intangible drilling costs due to differences between <br/>
<a id="pl.17.21"></a><var>17.21</var>this chapter and the Internal Revenue Code in taxable years beginning before January <br/>
<a id="pl.17.22"></a><var>17.22</var>1, 1987, as follows:<br/>
<a id="pl.17.23"></a><var>17.23</var>    (i) to the extent the disallowed costs are represented by physical property, an amount <br/>
<a id="pl.17.24"></a><var>17.24</var>equal to the allowance for depreciation under Minnesota Statutes 1986, section 
         <statute_ref>290.09, <br/>
<a id="pl.17.25"></a><var>17.25</var>subdivision 7
         </statute_ref>, subject to the modifications contained in subdivision 19e; and<br/>
<a id="pl.17.26"></a><var>17.26</var>    (ii) to the extent the disallowed costs are not represented by physical property, an <br/>
<a id="pl.17.27"></a><var>17.27</var>amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section <br/>
<statute_ref><a id="pl.17.28"></a><var>17.28</var>290.09, subdivision 8
         </statute_ref>;<br/>
<a id="pl.17.29"></a><var>17.29</var>    (5) the deduction for capital losses pursuant to sections 1211 and 1212 of the <br/>
<a id="pl.17.30"></a><var>17.30</var>Internal Revenue Code, except that:<br/>
<a id="pl.17.31"></a><var>17.31</var>    (i) for capital losses incurred in taxable years beginning after December 31, 1986, <br/>
<a id="pl.17.32"></a><var>17.32</var>capital loss carrybacks shall not be allowed;<br/>
<a id="pl.17.33"></a><var>17.33</var>    (ii) for capital losses incurred in taxable years beginning after December 31, 1986, <br/>
<a id="pl.17.34"></a><var>17.34</var>a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be <br/>
<a id="pl.17.35"></a><var>17.35</var>allowed;<br/>
<a id="pl.18.1"></a><var>18.1</var>    (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a <br/>
<a id="pl.18.2"></a><var>18.2</var>capital loss carryback to each of the three taxable years preceding the loss year, subject to <br/>
<a id="pl.18.3"></a><var>18.3</var>the provisions of Minnesota Statutes 1986, section 
         <statute_ref>290.16</statute_ref>, shall be allowed; and<br/>
<a id="pl.18.4"></a><var>18.4</var>    (iv) for capital losses incurred in taxable years beginning before January 1, 1987, <br/>
<a id="pl.18.5"></a><var>18.5</var>a capital loss carryover to each of the five taxable years succeeding the loss year to the <br/>
<a id="pl.18.6"></a><var>18.6</var>extent such loss was not used in a prior taxable year and subject to the provisions of <br/>
<a id="pl.18.7"></a><var>18.7</var>Minnesota Statutes 1986, section 
         <statute_ref>290.16</statute_ref>, shall be allowed;<br/>
<a id="pl.18.8"></a><var>18.8</var>    (6) an amount for interest and expenses relating to income not taxable for federal <br/>
<a id="pl.18.9"></a><var>18.9</var>income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and <br/>
<a id="pl.18.10"></a><var>18.10</var>expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or <br/>
<a id="pl.18.11"></a><var>18.11</var>291 of the Internal Revenue Code in computing federal taxable income;<br/>
<a id="pl.18.12"></a><var>18.12</var>    (7) in the case of mines, oil and gas wells, other natural deposits, and timber for <br/>
<a id="pl.18.13"></a><var>18.13</var>which percentage depletion was disallowed pursuant to subdivision 19c, clause (9), a <br/>
<a id="pl.18.14"></a><var>18.14</var>reasonable allowance for depletion based on actual cost. In the case of leases the deduction <br/>
<a id="pl.18.15"></a><var>18.15</var>must be apportioned between the lessor and lessee in accordance with rules prescribed <br/>
<a id="pl.18.16"></a><var>18.16</var>by the commissioner. In the case of property held in trust, the allowable deduction must <br/>
<a id="pl.18.17"></a><var>18.17</var>be apportioned between the income beneficiaries and the trustee in accordance with the <br/>
<a id="pl.18.18"></a><var>18.18</var>pertinent provisions of the trust, or if there is no provision in the instrument, on the basis <br/>
<a id="pl.18.19"></a><var>18.19</var>of the trust's income allocable to each;<br/>
<a id="pl.18.20"></a><var>18.20</var>    (8) for certified pollution control facilities placed in service in a taxable year <br/>
<a id="pl.18.21"></a><var>18.21</var>beginning before December 31, 1986, and for which amortization deductions were elected <br/>
<a id="pl.18.22"></a><var>18.22</var>under section 169 of the Internal Revenue Code of 1954, as amended through December <br/>
<a id="pl.18.23"></a><var>18.23</var>31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes <br/>
<a id="pl.18.24"></a><var>18.24</var>1986, section 
         <statute_ref>290.09, subdivision 7</statute_ref>;<br/>
<a id="pl.18.25"></a><var>18.25</var>    (9) amounts included in federal taxable income that are due to refunds of income, <br/>
<a id="pl.18.26"></a><var>18.26</var>excise, or franchise taxes based on net income or related minimum taxes paid by the <br/>
<a id="pl.18.27"></a><var>18.27</var>corporation to Minnesota, another state, a political subdivision of another state, the <br/>
<a id="pl.18.28"></a><var>18.28</var>District of Columbia, or a foreign country or possession of the United States to the extent <br/>
<a id="pl.18.29"></a><var>18.29</var>that the taxes were added to federal taxable income under section 
         <statute_ref>290.01, subdivision 19c</statute_ref>, <br/>
<a id="pl.18.30"></a><var>18.30</var>clause (1), in a prior taxable year;<br/>
<a id="pl.18.31"></a><var>18.31</var>    (10) 80 percent of royalties, fees, or other like income accrued or received from a <br/>
<a id="pl.18.32"></a><var>18.32</var>foreign operating corporation or a foreign corporation which is part of the same unitary <br/>
<a id="pl.18.33"></a><var>18.33</var>business as the receiving corporation, unless the income resulting from such payments or <br/>
<a id="pl.18.34"></a><var>18.34</var>accruals is income from sources within the United States as defined in subtitle A, chapter <br/>
<a id="pl.18.35"></a><var>18.35</var>1, subchapter N, part 1, of the Internal Revenue Code;<br/>
<a id="pl.19.1"></a><var>19.1</var>    (11) income or gains from the business of mining as defined in section 
         <statute_ref>290.05, <br/>
<a id="pl.19.2"></a><var>19.2</var>subdivision 1
         </statute_ref>, clause (a), that are not subject to Minnesota franchise tax;<br/>
<a id="pl.19.3"></a><var>19.3</var>    (12) the amount of disability access expenditures in the taxable year which are not <br/>
<a id="pl.19.4"></a><var>19.4</var>allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;<br/>
<a id="pl.19.5"></a><var>19.5</var>    (13) the amount of qualified research expenses not allowed for federal income tax <br/>
<a id="pl.19.6"></a><var>19.6</var>purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that <br/>
<a id="pl.19.7"></a><var>19.7</var>the amount exceeds the amount of the credit allowed under section 
         <statute_ref>290.068</statute_ref>;<br/>
<a id="pl.19.8"></a><var>19.8</var>    (14) the amount of salary expenses not allowed for federal income tax purposes due <br/>
<a id="pl.19.9"></a><var>19.9</var>to claiming the Indian employment credit under section 45A(a) of the Internal Revenue <br/>
<a id="pl.19.10"></a><var>19.10</var>Code;<br/>
<a id="pl.19.11"></a><var>19.11</var>    (15) for a corporation whose foreign sales corporation, as defined in section 922 <br/>
<a id="pl.19.12"></a><var>19.12</var>of the Internal Revenue Code, constituted a foreign operating corporation during any <br/>
<a id="pl.19.13"></a><var>19.13</var>taxable year ending before January 1, 1995, and a return was filed by August 15, 1996, <br/>
<a id="pl.19.14"></a><var>19.14</var>claiming the deduction under section 
         <statute_ref>290.21, subdivision 4</statute_ref>, for income received from <br/>
<a id="pl.19.15"></a><var>19.15</var>the foreign operating corporation, an amount equal to 
         <statute_ref>1.23</statute_ref> multiplied by the amount of <br/>
<a id="pl.19.16"></a><var>19.16</var>income excluded under section 114 of the Internal Revenue Code, provided the income is <br/>
<a id="pl.19.17"></a><var>19.17</var>not income of a foreign operating company;<br/>
<a id="pl.19.18"></a><var>19.18</var>    (16) any decrease in subpart F income, as defined in section 952(a) of the Internal <br/>
<a id="pl.19.19"></a><var>19.19</var>Revenue Code, for the taxable year when subpart F income is calculated without regard to <br/>
<a id="pl.19.20"></a><var>19.20</var>the provisions of Division C, title III, section 303(b) of Public Law 110-343;<br/>
<a id="pl.19.21"></a><var>19.21</var>    (17) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.19.22"></a><var>19.22</var>addition is required under subdivision 19c, clause (15) (14), an amount equal to one-fifth <br/>
<a id="pl.19.23"></a><var>19.23</var>of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the <br/>
<a id="pl.19.24"></a><var>19.24</var>amount of the addition made by the taxpayer under subdivision 19c, clause (15) (14). The <br/>
<a id="pl.19.25"></a><var>19.25</var>resulting delayed depreciation cannot be less than zero;<br/>
<a id="pl.19.26"></a><var>19.26</var>    (18) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.19.27"></a><var>19.27</var>addition is required under subdivision 19c, clause (16) (15), an amount equal to one-fifth <br/>
<a id="pl.19.28"></a><var>19.28</var>of the amount of the addition; and<br/>
<a id="pl.19.29"></a><var>19.29</var>(19) to the extent included in federal taxable income, discharge of indebtedness <br/>
<a id="pl.19.30"></a><var>19.30</var>income resulting from reacquisition of business indebtedness included in federal taxable <br/>
<a id="pl.19.31"></a><var>19.31</var>income under section 108(i) of the Internal Revenue Code. This subtraction applies only <br/>
<a id="pl.19.32"></a><var>19.32</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.19.33"></a><var>19.33</var>addition under section 
         <statute_ref>290.01, subdivision 19c</statute_ref>, clause (25) (20).<br/>
<a id="pl.19.34"></a><var>19.34</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.19.35"></a><var>19.35</var>December 31, 2011.<br/>
<br/>
<a id="bill.0.11.0"></a><a id="pl.20.1"></a><var>20.1</var>    Sec. 11. Minnesota Statutes 2011 Supplement, section 290.0675, subdivision 1, <br/>
<a id="pl.20.2"></a><var>20.2</var>is amended to read:<br/>
<a id="pl.20.3"></a><var>20.3</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section the following terms <br/>
<a id="pl.20.4"></a><var>20.4</var>have the meanings given.<br/>
<a id="pl.20.5"></a><var>20.5</var>(b) "Earned income" means the sum of the following, to the extent included in <br/>
<a id="pl.20.6"></a><var>20.6</var>Minnesota taxable income:<br/>
<a id="pl.20.7"></a><var>20.7</var>(1) earned income as defined in section 32(c)(2) of the Internal Revenue Code;<br/>
<a id="pl.20.8"></a><var>20.8</var>(2) income received from a retirement pension, profit-sharing, stock bonus, or <br/>
<a id="pl.20.9"></a><var>20.9</var>annuity plan; and<br/>
<a id="pl.20.10"></a><var>20.10</var>(3) Social Security benefits as defined in section 86(d)(1) of the Internal Revenue <br/>
<a id="pl.20.11"></a><var>20.11</var>Code.<br/>
<a id="pl.20.12"></a><var>20.12</var>(c) "Taxable income" means net income as defined in section 
         <statute_ref>290.01, subdivision 19</statute_ref>.<br/>
<a id="pl.20.13"></a><var>20.13</var>(d) "Earned income of lesser-earning spouse" means the earned income of the spouse <br/>
<a id="pl.20.14"></a><var>20.14</var>with the lesser amount of earned income as defined in paragraph (b) for the taxable year <br/>
<a id="pl.20.15"></a><var>20.15</var>minus the sum of (i) the amount for one exemption under section 151(d) of the Internal <br/>
<a id="pl.20.16"></a><var>20.16</var>Revenue Code and (ii) one-half the amount of the standard deduction under section <br/>
<a id="pl.20.17"></a><var>20.17</var>63(c)(2)(A) and (4) of the Internal Revenue Code minus one-half of any addition required <br/>
<a id="pl.20.18"></a><var>20.18</var>under section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (21), and one-half of the addition that would <br/>
<a id="pl.20.19"></a><var>20.19</var>have been required under section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (21), if the taxpayer <br/>
<a id="pl.20.20"></a><var>20.20</var>had claimed the standard deduction, and plus one-half of any subtraction allowed under <br/>
<a id="pl.20.21"></a><var>20.21</var>section 290.01, subdivision 19b, clause (19).<br/>
<a id="pl.20.22"></a><var>20.22</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.20.23"></a><var>20.23</var>December 31, 2011.<br/>
<br/>
<a id="bill.0.12.0"></a><a id="pl.20.24"></a><var>20.24</var>    Sec. 12. Minnesota Statutes 2010, section 290.17, subdivision 4, is amended to read:<br/>
<a id="pl.20.25"></a><var>20.25</var>    Subd. 4. <b>Unitary business principle.</b> (a) If a trade or business conducted wholly <br/>
<a id="pl.20.26"></a><var>20.26</var>within this state or partly within and partly without this state is part of a unitary business, <br/>
<a id="pl.20.27"></a><var>20.27</var>the entire income of the unitary business is subject to apportionment pursuant to section <br/>
<statute_ref><a id="pl.20.28"></a><var>20.28</var>290.191
         </statute_ref>. Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary <br/>
<a id="pl.20.29"></a><var>20.29</var>business is considered to be derived from any particular source and none may be allocated <br/>
<a id="pl.20.30"></a><var>20.30</var>to a particular place except as provided by the applicable apportionment formula. The <br/>
<a id="pl.20.31"></a><var>20.31</var>provisions of this subdivision do not apply to business income subject to subdivision 5, <br/>
<a id="pl.20.32"></a><var>20.32</var>income of an insurance company, or income of an investment company determined under <br/>
<a id="pl.20.33"></a><var>20.33</var>section 
         <statute_ref>290.36</statute_ref>.<br/>
<a id="pl.20.34"></a><var>20.34</var>(b) The term "unitary business" means business activities or operations which <br/>
<a id="pl.20.35"></a><var>20.35</var>result in a flow of value between them. The term may be applied within a single legal <br/>
<a id="pl.21.1"></a><var>21.1</var>entity or between multiple entities and without regard to whether each entity is a sole <br/>
<a id="pl.21.2"></a><var>21.2</var>proprietorship, a corporation, a partnership or a trust.<br/>
<a id="pl.21.3"></a><var>21.3</var>(c) Unity is presumed whenever there is unity of ownership, operation, and use, <br/>
<a id="pl.21.4"></a><var>21.4</var>evidenced by centralized management or executive force, centralized purchasing, <br/>
<a id="pl.21.5"></a><var>21.5</var>advertising, accounting, or other controlled interaction, but the absence of these <br/>
<a id="pl.21.6"></a><var>21.6</var>centralized activities will not necessarily evidence a nonunitary business. Unity is also <br/>
<a id="pl.21.7"></a><var>21.7</var>presumed when business activities or operations are of mutual benefit, dependent upon or <br/>
<a id="pl.21.8"></a><var>21.8</var>contributory to one another, either individually or as a group.<br/>
<a id="pl.21.9"></a><var>21.9</var>(d) Where a business operation conducted in Minnesota is owned by a business <br/>
<a id="pl.21.10"></a><var>21.10</var>entity that carries on business activity outside the state different in kind from that <br/>
<a id="pl.21.11"></a><var>21.11</var>conducted within this state, and the other business is conducted entirely outside the state, it <br/>
<a id="pl.21.12"></a><var>21.12</var>is presumed that the two business operations are unitary in nature, interrelated, connected, <br/>
<a id="pl.21.13"></a><var>21.13</var>and interdependent unless it can be shown to the contrary.<br/>
<a id="pl.21.14"></a><var>21.14</var>(e) Unity of ownership is not deemed to exist when a corporation is involved unless <br/>
<a id="pl.21.15"></a><var>21.15</var>that corporation is a member of a group of two or more business entities and more than 50 <br/>
<a id="pl.21.16"></a><var>21.16</var>percent of the voting stock of each member of the group is directly or indirectly owned <br/>
<a id="pl.21.17"></a><var>21.17</var>by a common owner or by common owners, either corporate or noncorporate, or by one <br/>
<a id="pl.21.18"></a><var>21.18</var>or more of the member corporations of the group. For this purpose, the term "voting <br/>
<a id="pl.21.19"></a><var>21.19</var>stock" shall include membership interests of mutual insurance holding companies formed <br/>
<a id="pl.21.20"></a><var>21.20</var>under section 
         <statute_ref>66A.40</statute_ref>.<br/>
<a id="pl.21.21"></a><var>21.21</var>(f) The net income and apportionment factors under section 
         <statute_ref>290.191</statute_ref> or 
         <statute_ref>290.20</statute_ref> of <br/>
<a id="pl.21.22"></a><var>21.22</var>foreign corporations and other foreign entities which are part of a unitary business shall <br/>
<a id="pl.21.23"></a><var>21.23</var>not be included in the net income or the apportionment factors of the unitary business. <br/>
<a id="pl.21.24"></a><var>21.24</var>A foreign corporation or other foreign entity which is required to file a return under this <br/>
<a id="pl.21.25"></a><var>21.25</var>chapter shall file on a separate return basis. The net income and apportionment factors <br/>
<a id="pl.21.26"></a><var>21.26</var>under section 
<statute_ref>290.191</statute_ref> or 
<statute_ref>290.20</statute_ref> of foreign operating corporations shall not be included in <br/>
<a id="pl.21.27"></a><var>21.27</var>the net income or the apportionment factors of the unitary business except as provided in <br/>
<a id="pl.21.28"></a><var>21.28</var>paragraph (g). The provisions of this paragraph are not severable from the provisions of <br/>
<a id="pl.21.29"></a><var>21.29</var>section 290.01, subdivision 5, clauses (4) to (6); if any of those provisions are found to be <br/>
<a id="pl.21.30"></a><var>21.30</var>unconstitutional, the provisions of this paragraph are void for the respective taxable years.<br/>
<a id="pl.21.31"></a><var>21.31</var>(g) The adjusted net income of a foreign operating corporation shall be deemed to <br/>
<a id="pl.21.32"></a><var>21.32</var>be paid as a dividend on the last day of its taxable year to each shareholder thereof, in <br/>
<a id="pl.21.33"></a><var>21.33</var>proportion to each shareholder's ownership, with which such corporation is engaged in <br/>
<a id="pl.21.34"></a><var>21.34</var>a unitary business. Such deemed dividend shall be treated as a dividend under section <br/>
<a id="pl.21.35"></a><var>21.35</var><statute_ref>290.21, subdivision 4</statute_ref>.<br/>
<a id="pl.22.1"></a><var>22.1</var>Dividends actually paid by a foreign operating corporation to a corporate shareholder <br/>
<a id="pl.22.2"></a><var>22.2</var>which is a member of the same unitary business as the foreign operating corporation shall <br/>
<a id="pl.22.3"></a><var>22.3</var>be eliminated from the net income of the unitary business in preparing a combined report <br/>
<a id="pl.22.4"></a><var>22.4</var>for the unitary business. The adjusted net income of a foreign operating corporation <br/>
<a id="pl.22.5"></a><var>22.5</var>shall be its net income adjusted as follows:<br/>
<a id="pl.22.6"></a><var>22.6</var>(1) any taxes paid or accrued to a foreign country, the commonwealth of Puerto <br/>
<a id="pl.22.7"></a><var>22.7</var>Rico, or a United States possession or political subdivision of any of the foregoing shall <br/>
<a id="pl.22.8"></a><var>22.8</var>be a deduction; and<br/>
<a id="pl.22.9"></a><var>22.9</var>(2) the subtraction from federal taxable income for payments received from foreign <br/>
<a id="pl.22.10"></a><var>22.10</var>corporations or foreign operating corporations under section 
<statute_ref>290.01, subdivision 19d</statute_ref>, <br/>
<a id="pl.22.11"></a><var>22.11</var>clause (10), shall not be allowed.<br/>
<a id="pl.22.12"></a><var>22.12</var>If a foreign operating corporation incurs a net loss, neither income nor deduction <br/>
<a id="pl.22.13"></a><var>22.13</var>from that corporation shall be included in determining the net income of the unitary <br/>
<a id="pl.22.14"></a><var>22.14</var>business.<br/>
<a id="pl.22.15"></a><var>22.15</var>(h) (g) For purposes of determining the net income of a unitary business and the <br/>
<a id="pl.22.16"></a><var>22.16</var>factors to be used in the apportionment of net income pursuant to section 
         <statute_ref>290.191</statute_ref> or <br/>
<statute_ref><a id="pl.22.17"></a><var>22.17</var>290.20
         </statute_ref>, there must be included only the income and apportionment factors of domestic <br/>
<a id="pl.22.18"></a><var>22.18</var>corporations or other domestic entities other than foreign operating corporations that are <br/>
<a id="pl.22.19"></a><var>22.19</var>determined to be part of the unitary business pursuant to this subdivision, notwithstanding <br/>
<a id="pl.22.20"></a><var>22.20</var>that foreign corporations or other foreign entities might be included in the unitary business.<br/>
<a id="pl.22.21"></a><var>22.21</var>(i) (h) Deductions for expenses, interest, or taxes otherwise allowable under <br/>
<a id="pl.22.22"></a><var>22.22</var>this chapter that are connected with or allocable against dividends, deemed dividends <br/>
<a id="pl.22.23"></a><var>22.23</var>described in paragraph (g), or royalties, fees, or other like income described in section <br/>
<statute_ref><a id="pl.22.24"></a><var>22.24</var>290.01, subdivision 19d
         </statute_ref>, clause (10), shall not be disallowed.<br/>
<a id="pl.22.25"></a><var>22.25</var>(j) (i) Each corporation or other entity, except a sole proprietorship, that is part of <br/>
<a id="pl.22.26"></a><var>22.26</var>a unitary business must file combined reports as the commissioner determines. On the <br/>
<a id="pl.22.27"></a><var>22.27</var>reports, all intercompany transactions between entities included pursuant to paragraph <br/>
<a id="pl.22.28"></a><var>22.28</var>(h) (g) must be eliminated and the entire net income of the unitary business determined in <br/>
<a id="pl.22.29"></a><var>22.29</var>accordance with this subdivision is apportioned among the entities by using each entity's <br/>
<a id="pl.22.30"></a><var>22.30</var>Minnesota factors for apportionment purposes in the numerators of the apportionment <br/>
<a id="pl.22.31"></a><var>22.31</var>formula and the total factors for apportionment purposes of all entities included pursuant <br/>
<a id="pl.22.32"></a><var>22.32</var>to paragraph (h) (g) in the denominators of the apportionment formula. All sales of the <br/>
<a id="pl.22.33"></a><var>22.33</var>unitary business made within Minnesota pursuant to section 290.191 or 290.20 must be <br/>
<a id="pl.22.34"></a><var>22.34</var>included on the separate combined report of a corporation that is a member of the unitary <br/>
<a id="pl.22.35"></a><var>22.35</var>business and is subject to the jurisdiction of this state to impose tax under this chapter.<br/>
<a id="pl.23.1"></a><var>23.1</var>(k) (j) If a corporation has been divested from a unitary business and is included in a <br/>
<a id="pl.23.2"></a><var>23.2</var>combined report for a fractional part of the common accounting period of the combined <br/>
<a id="pl.23.3"></a><var>23.3</var>report:<br/>
<a id="pl.23.4"></a><var>23.4</var>(1) its income includable in the combined report is its income incurred for that part <br/>
<a id="pl.23.5"></a><var>23.5</var>of the year determined by proration or separate accounting; and<br/>
<a id="pl.23.6"></a><var>23.6</var>(2) its sales, property, and payroll included in the apportionment formula must <br/>
<a id="pl.23.7"></a><var>23.7</var>be prorated or accounted for separately.<br/>
<a id="pl.23.8"></a><var>23.8</var><b>EFFECTIVE DATE.</b>This section is effective for returns filed for taxable years <br/>
<a id="pl.23.9"></a><var>23.9</var>beginning after December 31, 2011.<br/>
<br/>
<a id="bill.0.13.0"></a><a id="pl.23.10"></a><var>23.10</var>    Sec. 13. Minnesota Statutes 2011 Supplement, section 290A.03, subdivision 11, <br/>
<a id="pl.23.11"></a><var>23.11</var>is amended to read:<br/>
<a id="pl.23.12"></a><var>23.12</var>    Subd. 11. <b>Rent constituting property taxes.</b> "Rent constituting property taxes" <br/>
<a id="pl.23.13"></a><var>23.13</var>means 17 15 percent of the gross rent actually paid in cash, or its equivalent, or the portion <br/>
<a id="pl.23.14"></a><var>23.14</var>of rent paid in lieu of property taxes, in any calendar year by a claimant for the right <br/>
<a id="pl.23.15"></a><var>23.15</var>of occupancy of the claimant's Minnesota homestead in the calendar year, and which <br/>
<a id="pl.23.16"></a><var>23.16</var>rent constitutes the basis, in the succeeding calendar year of a claim for relief under this <br/>
<a id="pl.23.17"></a><var>23.17</var>chapter by the claimant.<br/>
<a id="pl.23.18"></a><var>23.18</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on rent paid in <br/>
<a id="pl.23.19"></a><var>23.19</var>2011 and thereafter.<br/>
<br/>
<a id="bill.0.14.0"></a><a id="pl.23.20"></a><var>23.20</var>    Sec. 14. Minnesota Statutes 2011 Supplement, section 290A.03, subdivision 13, <br/>
<a id="pl.23.21"></a><var>23.21</var>is amended to read:<br/>
<a id="pl.23.22"></a><var>23.22</var>    Subd. 13. <b>Property taxes payable.</b> "Property taxes payable" means the property tax <br/>
<a id="pl.23.23"></a><var>23.23</var>exclusive of special assessments, penalties, and interest payable on a claimant's homestead <br/>
<a id="pl.23.24"></a><var>23.24</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.23.25"></a><var>23.25</var>and any other state paid property tax credits in any calendar year, and after any refund <br/>
<a id="pl.23.26"></a><var>23.26</var>claimed and allowable under section 
         <statute_ref>290A.04, subdivision 2h</statute_ref>, that is first payable in <br/>
<a id="pl.23.27"></a><var>23.27</var>the year that the property tax is payable. In the case of a claimant who makes ground <br/>
<a id="pl.23.28"></a><var>23.28</var>lease payments, "property taxes payable" includes the amount of the payments directly <br/>
<a id="pl.23.29"></a><var>23.29</var>attributable to the property taxes assessed against the parcel on which the house is located. <br/>
<a id="pl.23.30"></a><var>23.30</var>No apportionment or reduction of the "property taxes payable" shall be required for the <br/>
<a id="pl.23.31"></a><var>23.31</var>use of a portion of the claimant's homestead for a business purpose if the claimant does not <br/>
<a id="pl.23.32"></a><var>23.32</var>deduct any business depreciation expenses for the use of a portion of the homestead in the <br/>
<a id="pl.23.33"></a><var>23.33</var>determination of federal adjusted gross income. For homesteads which are manufactured <br/>
<a id="pl.24.1"></a><var>24.1</var>homes as defined in section 
         <statute_ref>273.125, subdivision 8</statute_ref>, and for homesteads which are park <br/>
<a id="pl.24.2"></a><var>24.2</var>trailers taxed as manufactured homes under section 
         <statute_ref>168.012, subdivision 9</statute_ref>, "property <br/>
<a id="pl.24.3"></a><var>24.3</var>taxes payable" shall also include 17 15 percent of the gross rent paid in the preceding <br/>
<a id="pl.24.4"></a><var>24.4</var>year for the site on which the homestead is located. When a homestead is owned by <br/>
<a id="pl.24.5"></a><var>24.5</var>two or more persons as joint tenants or tenants in common, such tenants shall determine <br/>
<a id="pl.24.6"></a><var>24.6</var>between them which tenant may claim the property taxes payable on the homestead. If <br/>
<a id="pl.24.7"></a><var>24.7</var>they are unable to agree, the matter shall be referred to the commissioner of revenue <br/>
<a id="pl.24.8"></a><var>24.8</var>whose decision shall be final. Property taxes are considered payable in the year prescribed <br/>
<a id="pl.24.9"></a><var>24.9</var>by law for payment of the taxes.<br/>
<a id="pl.24.10"></a><var>24.10</var>In the case of a claim relating to "property taxes payable," the claimant must have <br/>
<a id="pl.24.11"></a><var>24.11</var>owned and occupied the homestead on January 2 of the year in which the tax is payable <br/>
<a id="pl.24.12"></a><var>24.12</var>and (i) the property must have been classified as homestead property pursuant to section <br/>
<statute_ref><a id="pl.24.13"></a><var>24.13</var>273.124
         </statute_ref>, on or before December 15 of the assessment year to which the "property taxes <br/>
<a id="pl.24.14"></a><var>24.14</var>payable" relate; or (ii) the claimant must provide documentation from the local assessor <br/>
<a id="pl.24.15"></a><var>24.15</var>that application for homestead classification has been made on or before December 15 <br/>
<a id="pl.24.16"></a><var>24.16</var>of the year in which the "property taxes payable" were payable and that the assessor has <br/>
<a id="pl.24.17"></a><var>24.17</var>approved the application.<br/>
<a id="pl.24.18"></a><var>24.18</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on rent paid in <br/>
<a id="pl.24.19"></a><var>24.19</var>2011 and thereafter.<br/>
<br/>
<a id="bill.0.15.0"></a><a id="pl.24.20"></a><var>24.20</var>    Sec. 15. Minnesota Statutes 2011 Supplement, section 290A.04, subdivision 2, is <br/>
<a id="pl.24.21"></a><var>24.21</var>amended to read:<br/>
<a id="pl.24.22"></a><var>24.22</var>    Subd. 2. <b>Homeowners.</b> A claimant whose property taxes payable are in excess <br/>
<a id="pl.24.23"></a><var>24.23</var>of the percentage of the household income stated below shall pay an amount equal to <br/>
<a id="pl.24.24"></a><var>24.24</var>the percent of income shown for the appropriate household income level along with the <br/>
<a id="pl.24.25"></a><var>24.25</var>percent to be paid by the claimant of the remaining amount of property taxes payable. <br/>
<a id="pl.24.26"></a><var>24.26</var>The state refund equals the amount of property taxes payable that remain, up to the state <br/>
<a id="pl.24.27"></a><var>24.27</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.24.28"></a><var>24.28</var><br/>
<a id="pl.24.29"></a><var>24.29</var><br/>
<a id="pl.24.30"></a><var>24.30</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><a id="pl.24.31"></a><var>24.31</var><br/>
</td>
<td align="right">$0 to 1,549<br/>
</td>
<td align="center">1.0 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.32"></a><var>24.32</var><br/>
</td>
<td align="right">1,550 to 3,089<br/>
</td>
<td align="center">1.1 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.33"></a><var>24.33</var><br/>
</td>
<td align="right">3,090 to 4,669<br/>
</td>
<td align="center">1.2 percent<br/>
</td>
<td align="center">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.34"></a><var>24.34</var><br/>
</td>
<td align="right">4,670 to 6,229<br/>
</td>
<td align="center">1.3 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.35"></a><var>24.35</var><br/>
</td>
<td align="right">6,230 to 7,769<br/>
</td>
<td align="center">1.4 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.24.36"></a><var>24.36</var><br/>
</td>
<td align="right">7,770 to 10,879<br/>
</td>
<td align="center">1.5 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.1"></a><var>25.1</var><br/>
</td>
<td align="right">10,880 to 12,429<br/>
</td>
<td align="center">1.6 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.2"></a><var>25.2</var><br/>
</td>
<td align="right">12,430 to 13,989<br/>
</td>
<td align="center">1.7 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.3"></a><var>25.3</var><br/>
</td>
<td align="right">13,990 to 15,539<br/>
</td>
<td align="center">1.8 percent<br/>
</td>
<td align="center">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.4"></a><var>25.4</var><br/>
</td>
<td align="right">15,540 to 17,079<br/>
</td>
<td align="center">1.9 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.5"></a><var>25.5</var><br/>
</td>
<td align="right">17,080 to 18,659<br/>
</td>
<td align="center">2.0 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.6"></a><var>25.6</var><br/>
</td>
<td align="right">18,660 to 21,759<br/>
</td>
<td align="center">2.1 percent<br/>
</td>
<td align="center">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.7"></a><var>25.7</var><br/>
</td>
<td align="right">21,760 to 23,309<br/>
</td>
<td align="center">2.2 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.8"></a><var>25.8</var><br/>
</td>
<td align="right">23,310 to 24,859<br/>
</td>
<td align="center">2.3 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.9"></a><var>25.9</var><br/>
</td>
<td align="right">24,860 to 26,419<br/>
</td>
<td align="center">2.4 percent<br/>
</td>
<td align="center">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.10"></a><var>25.10</var><br/>
</td>
<td align="right">26,420 to 32,629<br/>
</td>
<td align="center">2.5 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.11"></a><var>25.11</var><br/>
</td>
<td align="right">32,630 to 37,279<br/>
</td>
<td align="center">2.6 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,460<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.12"></a><var>25.12</var><br/>
<a id="pl.25.13"></a><var>25.13</var><br/>
</td>
<td align="right">37,280 to 46,609<br/>
</td>
<td align="center">2.7 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,000<br/>
2,400<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.14"></a><var>25.14</var><br/>
<a id="pl.25.15"></a><var>25.15</var><br/>
</td>
<td align="right">46,610 to 54,369<br/>
</td>
<td align="center">2.8 percent<br/>
</td>
<td align="center">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">2,000<br/>
2,400<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.16"></a><var>25.16</var><br/>
<a id="pl.25.17"></a><var>25.17</var><br/>
</td>
<td align="right">54,370 to 62,139<br/>
</td>
<td align="center">2.8 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,750<br/>
2,100<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.18"></a><var>25.18</var><br/>
<a id="pl.25.19"></a><var>25.19</var><br/>
</td>
<td align="right">62,140 to 69,909<br/>
</td>
<td align="center">3.0 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,440<br/>
1,730<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.20"></a><var>25.20</var><br/>
<a id="pl.25.21"></a><var>25.21</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">$<br/>
</td>
<td align="right">1,290<br/>
1,550<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.22"></a><var>25.22</var><br/>
<a id="pl.25.23"></a><var>25.23</var><br/>
</td>
<td align="right">77,680 to 85,449<br/>
</td>
<td align="center">3.0 percent<br/>
</td>
<td align="center">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,130<br/>
1,360<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.24"></a><var>25.24</var><br/>
<a id="pl.25.25"></a><var>25.25</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">$<br/>
</td>
<td align="right">960<br/>
1,150<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.26"></a><var>25.26</var><br/>
<a id="pl.25.27"></a><var>25.27</var><br/>
</td>
<td align="right">90,120 to 93,239<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">790<br/>
950<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.28"></a><var>25.28</var><br/>
<a id="pl.25.29"></a><var>25.29</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">$<br/>
</td>
<td align="right">650<br/>
780<br/>
</td>
</tr>
<tr>
<td><a id="pl.25.30"></a><var>25.30</var><br/>
<a id="pl.25.31"></a><var>25.31</var><br/>
</td>
<td align="right">97,010 to 100,779<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="center">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">480<br/>
580<br/>
</td>
</tr>
</table><a id="pl.25.32"></a><var>25.32</var>    The payment made to a claimant shall be the amount of the state refund calculated <br/>
<a id="pl.25.33"></a><var>25.33</var>under this subdivision. No payment is allowed if the claimant's household income is <br/>
<a id="pl.25.34"></a><var>25.34</var>$100,780 or more.<br/>
<a id="pl.25.35"></a><var>25.35</var><b>EFFECTIVE DATE.</b>This section is effective for refund claims based on taxes <br/>
<a id="pl.25.36"></a><var>25.36</var>payable in 2012 and thereafter.<br/>
<br/>
<a id="bill.0.16.0"></a><a id="pl.25.37"></a><var>25.37</var>    Sec. 16. Minnesota Statutes 2010, section 290A.04, subdivision 2a, is amended to read:<br/>
<a id="pl.25.38"></a><var>25.38</var>    Subd. 2a. <b>Renters</b><b>; senior or disabled</b><b>.</b> A claimant whose rent constituting property <br/>
<a id="pl.25.39"></a><var>25.39</var>taxes exceeds the percentage of the household income stated below must pay an amount <br/>
<a id="pl.25.40"></a><var>25.40</var>equal to the percent of income shown for the appropriate household income level along <br/>
<a id="pl.25.41"></a><var>25.41</var>with the percent to be paid by the claimant of the remaining amount of rent constituting <br/>
<a id="pl.25.42"></a><var>25.42</var>property taxes. The state refund equals the amount of rent constituting property taxes that <br/>
<a id="pl.26.1"></a><var>26.1</var>remain, up to the maximum state refund amount shown below. This subdivision applies <br/>
<a id="pl.26.2"></a><var>26.2</var>only if the claimant or the claimant's spouse was disabled or attained the age of 65 on or <br/>
<a id="pl.26.3"></a><var>26.3</var>before December 31 of the year for which the rent was paid.<br/>
<table>
<col width="50px"/>
<col width="17.5"/>
<col width="17.5"/>
<col width="12.5"/>
<col width="12.5"/>
<col width="5"/>
<tr>
<td><a id="pl.26.4"></a><var>26.4</var><br/>
<a id="pl.26.5"></a><var>26.5</var><br/>
<a id="pl.26.6"></a><var>26.6</var><br/>
</td>
<td align="right">Household Income<br/>
</td>
<td align="center">Percent of Income<br/>
</td>
<td align="right">Percent Paid by<br/>
Claimant<br/>
</td>
<td align="right" colspan="2">Maximum <br/>
State<br/>
Refund<br/>
</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.26.7"></a><var>26.7</var><br/>
</td>
<td align="right">$0 to 3,589<br/>
</td>
<td align="center">1.0 percent<br/>
</td>
<td align="right">5 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.8"></a><var>26.8</var><br/>
</td>
<td align="right">3,590 to 4,779<br/>
</td>
<td align="center">1.0 percent<br/>
</td>
<td align="right">10 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.9"></a><var>26.9</var><br/>
</td>
<td align="right">4,780 to 5,969<br/>
</td>
<td align="center">1.1 percent<br/>
</td>
<td align="right">10 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.10"></a><var>26.10</var><br/>
</td>
<td align="right">5,970 to 8,369<br/>
</td>
<td align="center">1.2 percent<br/>
</td>
<td align="right">10 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.11"></a><var>26.11</var><br/>
</td>
<td align="right">8,370 to 10,759<br/>
</td>
<td align="center">1.3 percent<br/>
</td>
<td align="right">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.12"></a><var>26.12</var><br/>
</td>
<td align="right">10,760 to 11,949<br/>
</td>
<td align="center">1.4 percent<br/>
</td>
<td align="right">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.13"></a><var>26.13</var><br/>
</td>
<td align="right">11,950 to 13,139<br/>
</td>
<td align="center">1.4 percent<br/>
</td>
<td align="right">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.14"></a><var>26.14</var><br/>
</td>
<td align="right">13,140 to 15,539<br/>
</td>
<td align="center">1.5 percent<br/>
</td>
<td align="right">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.15"></a><var>26.15</var><br/>
</td>
<td align="right">15,540 to 16,729<br/>
</td>
<td align="center">1.6 percent<br/>
</td>
<td align="right">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.16"></a><var>26.16</var><br/>
</td>
<td align="right">16,730 to 17,919<br/>
</td>
<td align="center">1.7 percent<br/>
</td>
<td align="right">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.17"></a><var>26.17</var><br/>
</td>
<td align="right">17,920 to 20,319<br/>
</td>
<td align="center">1.8 percent<br/>
</td>
<td align="right">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.18"></a><var>26.18</var><br/>
</td>
<td align="right">20,320 to 21,509<br/>
</td>
<td align="center">1.9 percent<br/>
</td>
<td align="right">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.19"></a><var>26.19</var><br/>
</td>
<td align="right">21,510 to 22,699<br/>
</td>
<td align="center">2.0 percent<br/>
</td>
<td align="right">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.20"></a><var>26.20</var><br/>
</td>
<td align="right">22,700 to 23,899<br/>
</td>
<td align="center">2.2 percent<br/>
</td>
<td align="right">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.21"></a><var>26.21</var><br/>
</td>
<td align="right">23,900 to 25,089<br/>
</td>
<td align="center">2.4 percent<br/>
</td>
<td align="right">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.22"></a><var>26.22</var><br/>
</td>
<td align="right">25,090 to 26,289<br/>
</td>
<td align="center">2.6 percent<br/>
</td>
<td align="right">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.23"></a><var>26.23</var><br/>
</td>
<td align="right">26,290 to 27,489<br/>
</td>
<td align="center">2.7 percent<br/>
</td>
<td align="right">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.24"></a><var>26.24</var><br/>
</td>
<td align="right">27,490 to 28,679<br/>
</td>
<td align="center">2.8 percent<br/>
</td>
<td align="right">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.25"></a><var>26.25</var><br/>
</td>
<td align="right">28,680 to 29,869<br/>
</td>
<td align="center">2.9 percent<br/>
</td>
<td align="right">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.26"></a><var>26.26</var><br/>
</td>
<td align="right">29,870 to 31,079<br/>
</td>
<td align="center">3.0 percent<br/>
</td>
<td align="right">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.27"></a><var>26.27</var><br/>
</td>
<td align="right">31,080 to 32,269<br/>
</td>
<td align="center">3.1 percent<br/>
</td>
<td align="right">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.28"></a><var>26.28</var><br/>
</td>
<td align="right">32,270 to 33,459<br/>
</td>
<td align="center">3.2 percent<br/>
</td>
<td align="right">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.29"></a><var>26.29</var><br/>
</td>
<td align="right">33,460 to 34,649<br/>
</td>
<td align="center">3.3 percent<br/>
</td>
<td align="right">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,080<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.30"></a><var>26.30</var><br/>
</td>
<td align="right">34,650 to 35,849<br/>
</td>
<td align="center">3.4 percent<br/>
</td>
<td align="right">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">960<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.31"></a><var>26.31</var><br/>
</td>
<td align="right">35,850 to 37,049<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="right">45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">830<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.32"></a><var>26.32</var><br/>
</td>
<td align="right">37,050 to 38,239<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="right">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">720<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.33"></a><var>26.33</var><br/>
</td>
<td align="right">38,240 to 39,439<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="right">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">600<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.34"></a><var>26.34</var><br/>
</td>
<td align="right">38,440 to 40,629<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="right">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">360<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.35"></a><var>26.35</var><br/>
</td>
<td align="right">40,630 to 41,819<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="right">50 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">120<br/>
</td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="17.5"/>
<col width="17.5"/>
<col width="12.5"/>
<col width="12.5"/>
<col width="5"/>
<tr>
<td><a id="pl.26.36"></a><var>26.36</var><br/>
<a id="pl.26.37"></a><var>26.37</var><br/>
<a id="pl.26.38"></a><var>26.38</var><br/>
</td>
<td align="right">Household Income<br/>
</td>
<td align="center">Percent of Income<br/>
</td>
<td align="right">Percent Paid by<br/>
Claimant<br/>
</td>
<td align="right" colspan="2">Maximum <br/>
State<br/>
Refund<br/>
</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.26.39"></a><var>26.39</var><br/>
</td>
<td align="right">$0 to 4,689<br/>
</td>
<td align="center">1.0 percent<br/>
</td>
<td align="right">5 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,550<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.40"></a><var>26.40</var><br/>
</td>
<td align="right">4,690 to 6,239<br/>
</td>
<td align="center">1.0 percent<br/>
</td>
<td align="right">10 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,550<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.41"></a><var>26.41</var><br/>
</td>
<td align="right">6,240 to 7,799<br/>
</td>
<td align="center">1.1 percent<br/>
</td>
<td align="right">10 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,550<br/>
</td>
</tr>
<tr>
<td><a id="pl.26.42"></a><var>26.42</var><br/>
</td>
<td align="right">7,800 to 10,929<br/>
</td>
<td align="center">1.2 percent<br/>
</td>
<td align="right">10 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,550<br/>
</td>
</tr>
<tr>
<td><a id="pl.27.1"></a><var>27.1</var><br/>
</td>
<td align="right">10,930 to 14,049<br/>
</td>
<td align="center">1.3 percent<br/>
</td>
<td align="right">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,550<br/>
</td>
</tr>
<tr>
<td><a id="pl.27.2"></a><var>27.2</var><br/>
</td>
<td align="right">14,050 to 15,609<br/>
</td>
<td align="center">1.4 percent<br/>
</td>
<td align="right">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,550<br/>
</td>
</tr>
<tr>
<td><a id="pl.27.3"></a><var>27.3</var><br/>
</td>
<td align="right">15,610 to 17,159<br/>
</td>
<td align="center">1.4 percent<br/>
</td>
<td align="right">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,550<br/>
</td>
</tr>
<tr>
<td><a id="pl.27.4"></a><var>27.4</var><br/>
</td>
<td align="right">17,160 to 20,289<br/>
</td>
<td align="center">1.5 percent<br/>
</td>
<td align="right">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,550<br/>
</td>
</tr>
<tr>
<td><a id="pl.27.5"></a><var>27.5</var><br/>
</td>
<td align="right">20,290 to 21,849<br/>
</td>
<td align="center">1.6 percent<br/>
</td>
<td align="right">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,550<br/>
</td>
</tr>
<tr>
<td><a id="pl.27.6"></a><var>27.6</var><br/>
</td>
<td align="right">21,850 to 23,399<br/>
</td>
<td align="center">1.7 percent<br/>
</td>
<td align="right">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,550<br/>
</td>
</tr>
<tr>
<td><a id="pl.27.7"></a><var>27.7</var><br/>
</td>
<td align="right">23,400 to 26,539<br/>
</td>
<td align="center">1.8 percent<br/>
</td>
<td align="right">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.27.8"></a><var>27.8</var><br/>
</td>
<td align="right">26,540 to 28,089<br/>
</td>
<td align="center">1.9 percent<br/>
</td>
<td align="right">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,400<br/>
</td>
</tr>
<tr>
<td><a id="pl.27.9"></a><var>27.9</var><br/>
</td>
<td align="right">28,090 to 29,649<br/>
</td>
<td align="center">2.0 percent<br/>
</td>
<td align="right">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,300<br/>
</td>
</tr>
<tr>
<td><a id="pl.27.10"></a><var>27.10</var><br/>
</td>
<td align="right">29,650 to 31,209<br/>
</td>
<td align="center">2.2 percent<br/>
</td>
<td align="right">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,200<br/>
</td>
</tr>
<tr>
<td><a id="pl.27.11"></a><var>27.11</var><br/>
</td>
<td align="right">31,210 to 32,769<br/>
</td>
<td align="center">2.4 percent<br/>
</td>
<td align="right">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,100<br/>
</td>
</tr>
<tr>
<td><a id="pl.27.12"></a><var>27.12</var><br/>
</td>
<td align="right">32,770 to 34,329<br/>
</td>
<td align="center">2.6 percent<br/>
</td>
<td align="right">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.27.13"></a><var>27.13</var><br/>
</td>
<td align="right">34,330 to 35,899<br/>
</td>
<td align="center">2.7 percent<br/>
</td>
<td align="right">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.27.14"></a><var>27.14</var><br/>
</td>
<td align="right">35,900 to 37,449<br/>
</td>
<td align="center">2.8 percent<br/>
</td>
<td align="right">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">750<br/>
</td>
</tr>
<tr>
<td><a id="pl.27.15"></a><var>27.15</var><br/>
</td>
<td align="right">37,450 to 39,009<br/>
</td>
<td align="center">2.9 percent<br/>
</td>
<td align="right">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">500<br/>
</td>
</tr>
<tr>
<td><a id="pl.27.16"></a><var>27.16</var><br/>
</td>
<td align="right">39,010 to 39,999<br/>
</td>
<td align="center">3.0 percent<br/>
</td>
<td align="right">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">250<br/>
</td>
</tr>
</table><a id="pl.27.17"></a><var>27.17</var>The payment made to a claimant is the amount of the state refund calculated under <br/>
<a id="pl.27.18"></a><var>27.18</var>this subdivision. No payment is allowed if the claimant's household income is $41,820 <br/>
<a id="pl.27.19"></a><var>27.19</var>$40,000 or more.<br/>
<a id="pl.27.20"></a><var>27.20</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on rent paid in <br/>
<a id="pl.27.21"></a><var>27.21</var>2011 and thereafter.<br/>
<br/>
<a id="bill.0.17.0"></a><a id="pl.27.22"></a><var>27.22</var>    Sec. 17. Minnesota Statutes 2010, section 290A.04, is amended by adding a <br/>
<a id="pl.27.23"></a><var>27.23</var>subdivision to read:<br/>
<a id="pl.27.24"></a><var>27.24</var>    Subd. 2k. <b>Renters; nonsenior nondisabled.</b> A claimant whose rent constituting <br/>
<a id="pl.27.25"></a><var>27.25</var>property taxes exceeds the percentage of the household income stated below must pay <br/>
<a id="pl.27.26"></a><var>27.26</var>an amount equal to the percent of income shown for the appropriate household income <br/>
<a id="pl.27.27"></a><var>27.27</var>level along with the percent to be paid by the claimant of the remaining amount of rent <br/>
<a id="pl.27.28"></a><var>27.28</var>constituting property taxes. The state refund equals the amount of rent constituting <br/>
<a id="pl.27.29"></a><var>27.29</var>property taxes that remain, up to the maximum state refund amount shown below. This <br/>
<a id="pl.27.30"></a><var>27.30</var>subdivision applies only if the claimant or the claimant's spouse is not eligible for a refund <br/>
<a id="pl.27.31"></a><var>27.31</var>under subdivision 2a.<br/>
<table>
<col width="50px"/>
<col width="17.5"/>
<col width="17.5"/>
<col width="12.5"/>
<col width="12.5"/>
<col width="5"/>
<tr>
<td><a id="pl.27.32"></a><var>27.32</var><br/>
<a id="pl.27.33"></a><var>27.33</var><br/>
<a id="pl.27.34"></a><var>27.34</var><br/>
</td>
<td align="right">Household Income<br/>
</td>
<td align="center">Percent of Income<br/>
</td>
<td align="right">Percent Paid by<br/>
Claimant<br/>
</td>
<td align="right" colspan="2">Maximum <br/>
State<br/>
Refund<br/>
</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.27.35"></a><var>27.35</var><br/>
</td>
<td align="right">$0 to 6,239<br/>
</td>
<td align="center">1.0 percent<br/>
</td>
<td align="right">15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.27.36"></a><var>27.36</var><br/>
</td>
<td align="right">6,240 to 7,799<br/>
</td>
<td align="center">1.1 percent<br/>
</td>
<td align="right">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.27.37"></a><var>27.37</var><br/>
</td>
<td align="right">7,800 to 10,929<br/>
</td>
<td align="center">1.2 percent<br/>
</td>
<td align="right">20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">900<br/>
</td>
</tr>
<tr>
<td><a id="pl.27.38"></a><var>27.38</var><br/>
</td>
<td align="right">10,930 to 14,049<br/>
</td>
<td align="center">1.3 percent<br/>
</td>
<td align="right">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">800<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.1"></a><var>28.1</var><br/>
</td>
<td align="right">14,050 to 15,609<br/>
</td>
<td align="center">1.4 percent<br/>
</td>
<td align="right">25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">800<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.2"></a><var>28.2</var><br/>
</td>
<td align="right">15,610 to 17,159<br/>
</td>
<td align="center">1.4 percent<br/>
</td>
<td align="right">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">600<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.3"></a><var>28.3</var><br/>
</td>
<td align="right">17,160 to 20,289<br/>
</td>
<td align="center">1.5 percent<br/>
</td>
<td align="right">30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">600<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.4"></a><var>28.4</var><br/>
</td>
<td align="right">20,290 to 21,849<br/>
</td>
<td align="center">1.6 percent<br/>
</td>
<td align="right">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">400<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.5"></a><var>28.5</var><br/>
</td>
<td align="right">21,850 to 23,399<br/>
</td>
<td align="center">1.7 percent<br/>
</td>
<td align="right">35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">400<br/>
</td>
</tr>
<tr>
<td><a id="pl.28.6"></a><var>28.6</var><br/>
</td>
<td align="right">23,400 to 24,999<br/>
</td>
<td align="center">1.8 percent<br/>
</td>
<td align="right">40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">200<br/>
</td>
</tr>
</table><a id="pl.28.7"></a><var>28.7</var>The payment made to a claimant is the amount of the state refund calculated under <br/>
<a id="pl.28.8"></a><var>28.8</var>this subdivision. No payment is allowed if the claimant's household income is $25,000 <br/>
<a id="pl.28.9"></a><var>28.9</var>or more.<br/>
<a id="pl.28.10"></a><var>28.10</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on rent paid in <br/>
<a id="pl.28.11"></a><var>28.11</var>2011 and thereafter.<br/>
<br/>
<a id="bill.0.18.0"></a><a id="pl.28.12"></a><var>28.12</var>    Sec. 18. Minnesota Statutes 2011 Supplement, section 290A.04, subdivision 4, is <br/>
<a id="pl.28.13"></a><var>28.13</var>amended to read:<br/>
<a id="pl.28.14"></a><var>28.14</var>    Subd. 4. <b>Inflation adjustment.</b> (a) Beginning for property tax refunds payable in <br/>
<a id="pl.28.15"></a><var>28.15</var>calendar year 2002, the commissioner shall annually adjust the dollar amounts of the <br/>
<a id="pl.28.16"></a><var>28.16</var>income thresholds and the maximum refunds under subdivisions 2 and 2a subdivision 2 <br/>
<a id="pl.28.17"></a><var>28.17</var>for inflation. The commissioner shall make the inflation adjustments in accordance with <br/>
<a id="pl.28.18"></a><var>28.18</var>section 1(f) of the Internal Revenue Code, except that for purposes of this subdivision the <br/>
<a id="pl.28.19"></a><var>28.19</var>percentage increase shall be determined as provided in this subdivision.<br/>
<a id="pl.28.20"></a><var>28.20</var>(b) In adjusting the dollar amounts of the income thresholds and the maximum <br/>
<a id="pl.28.21"></a><var>28.21</var>refunds under subdivision 2 for inflation, the percentage increase shall be determined from <br/>
<a id="pl.28.22"></a><var>28.22</var>the year ending on June 30, 2011, to the year ending on June 30 of the year preceding that <br/>
<a id="pl.28.23"></a><var>28.23</var>in which the refund is payable.<br/>
<a id="pl.28.24"></a><var>28.24</var>(c) In adjusting the dollar amounts of the income thresholds and the maximum <br/>
<a id="pl.28.25"></a><var>28.25</var>refunds under subdivision 2a for inflation, the percentage increase shall be determined <br/>
<a id="pl.28.26"></a><var>28.26</var>from the year ending on June 30, 2000, to the year ending on June 30 of the year preceding <br/>
<a id="pl.28.27"></a><var>28.27</var>that in which the refund is payable.<br/>
<a id="pl.28.28"></a><var>28.28</var>(d) (c) The commissioner shall use the appropriate percentage increase to annually <br/>
<a id="pl.28.29"></a><var>28.29</var>adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for <br/>
<a id="pl.28.30"></a><var>28.30</var>inflation without regard to whether or not the income tax brackets are adjusted for inflation <br/>
<a id="pl.28.31"></a><var>28.31</var>in that year. The commissioner shall round the thresholds and the maximum amounts, <br/>
<a id="pl.28.32"></a><var>28.32</var>as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall <br/>
<a id="pl.28.33"></a><var>28.33</var>round it up to the next $10 amount.<br/>
<a id="pl.29.1"></a><var>29.1</var>(e) (d) The commissioner shall annually announce the adjusted refund schedule at <br/>
<a id="pl.29.2"></a><var>29.2</var>the same time provided under section 
         <statute_ref>290.06</statute_ref>. The determination of the commissioner <br/>
<a id="pl.29.3"></a><var>29.3</var>under this subdivision is not a rule under the Administrative Procedure Act.<br/>
<a id="pl.29.4"></a><var>29.4</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on rent paid in <br/>
<a id="pl.29.5"></a><var>29.5</var>2012 and thereafter.<br/>
<br/>
<a id="bill.0.19.0"></a><a id="pl.29.6"></a><var>29.6</var>    Sec. 19. Minnesota Statutes 2010, section 290A.23, subdivision 1, is amended to read:<br/>
<a id="pl.29.7"></a><var>29.7</var>    Subdivision 1. <b>Renters credit.</b> There is appropriated from the general fund in the <br/>
<a id="pl.29.8"></a><var>29.8</var>state treasury to the commissioner of revenue the amount necessary to make the payments <br/>
<a id="pl.29.9"></a><var>29.9</var>required under section 
         <statute_ref>290A.04, subdivision 2a subdivisions 2a and 2k</statute_ref>.<br/>
<a id="pl.29.10"></a><var>29.10</var><b>EFFECTIVE DATE.</b>This section is effective for claims based on rent paid in <br/>
<a id="pl.29.11"></a><var>29.11</var>2011 and thereafter.<br/>
<br/>
<a id="bill.0.20.0"></a><a id="pl.29.12"></a><var>29.12</var>    Sec. 20. Minnesota Statutes 2011 Supplement, section 477A.013, subdivision 9, <br/>
<a id="pl.29.13"></a><var>29.13</var>is amended to read:<br/>
<a id="pl.29.14"></a><var>29.14</var>    Subd. 9. <b>City aid distribution.</b> (a) In calendar year 2009 2013 and thereafter, each <br/>
<a id="pl.29.15"></a><var>29.15</var>city shall receive an aid distribution equal to the sum of (1) the city formula aid under <br/>
<a id="pl.29.16"></a><var>29.16</var>subdivision 8, and (2) its city aid base amount of aid it received under subdivision 11 in <br/>
<a id="pl.29.17"></a><var>29.17</var>calendar year 2012.<br/>
<a id="pl.29.18"></a><var>29.18</var>    (b) For aids payable in 2013 only, the total aid in the previous year for any city <br/>
<a id="pl.29.19"></a><var>29.19</var>shall mean the amount of aid it was certified to receive for aids payable in 2012 under <br/>
<a id="pl.29.20"></a><var>29.20</var>this section. For aids payable in 2014 and thereafter, the total aid in the previous year <br/>
<a id="pl.29.21"></a><var>29.21</var>for any city means the amount of aid it was certified to receive under this section in the <br/>
<a id="pl.29.22"></a><var>29.22</var>previous payable year.<br/>
<a id="pl.29.23"></a><var>29.23</var>    (c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed <br/>
<a id="pl.29.24"></a><var>29.24</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.29.25"></a><var>29.25</var>plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total <br/>
<a id="pl.29.26"></a><var>29.26</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.29.27"></a><var>29.27</var>this section in the previous year minus the lesser of $10 multiplied by its population, or ten <br/>
<a id="pl.29.28"></a><var>29.28</var>percent of its net levy in the year prior to the aid distribution.<br/>
<a id="pl.29.29"></a><var>29.29</var>    (d) For aids payable in 2010 and thereafter, the total aid for a city with a population <br/>
<a id="pl.29.30"></a><var>29.30</var>less than 2,500 must not be less than the amount it was certified to receive in the <br/>
<a id="pl.29.31"></a><var>29.31</var>previous year minus the lesser of $10 multiplied by its population, or five percent of its <br/>
<a id="pl.29.32"></a><var>29.32</var>2003 certified aid amount. For aids payable in 2009 only, the total aid for a city with a <br/>
<a id="pl.29.33"></a><var>29.33</var>population less than 2,500 must not be less than what it received under this section in the <br/>
<a id="pl.30.1"></a><var>30.1</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.30.2"></a><var>30.2</var>subdivision 36, paragraph (s), in which case its minimum aid is zero.<br/>
<a id="pl.30.3"></a><var>30.3</var>    (e) A city's aid loss under this section may not exceed $300,000 in any year in <br/>
<a id="pl.30.4"></a><var>30.4</var>which the total city aid appropriation under section 
<statute_ref>477A.03, subdivision 2a</statute_ref>, is equal or <br/>
<a id="pl.30.5"></a><var>30.5</var>greater than the appropriation under that subdivision in the previous year, unless the <br/>
<a id="pl.30.6"></a><var>30.6</var>city has an adjustment in its city net tax capacity under the process described in section <br/>
<a id="pl.30.7"></a><var>30.7</var><statute_ref>469.174, subdivision 28</statute_ref>.<br/>
<a id="pl.30.8"></a><var>30.8</var>    (f) If a city's net tax capacity used in calculating aid under this section has decreased <br/>
<a id="pl.30.9"></a><var>30.9</var>in any year by more than 25 percent from its net tax capacity in the previous year due to <br/>
<a id="pl.30.10"></a><var>30.10</var>property becoming tax-exempt Indian land, the city's maximum allowed aid increase <br/>
<a id="pl.30.11"></a><var>30.11</var>under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the <br/>
<a id="pl.30.12"></a><var>30.12</var>year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease <br/>
<a id="pl.30.13"></a><var>30.13</var>resulting from the property becoming tax exempt.<br/>
<a id="pl.30.14"></a><var>30.14</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.30.15"></a><var>30.15</var>2013 and thereafter.<br/>
<br/>
<a id="bill.0.21.0"></a><a id="pl.30.16"></a><var>30.16</var>    Sec. 21. <b>SUPPLEMENTAL TARGETING REFUND FOR TAXES PAYABLE IN </b><br/>
<a id="pl.30.17"></a><var>30.17</var><b>2012 ONLY.</b><br/>
<a id="pl.30.18"></a><var>30.18</var>    Subdivision 1. <b>Determination of supplemental refund.</b> (a) For property tax refund <br/>
<a id="pl.30.19"></a><var>30.19</var>claims under Minnesota Statutes, section 290A.04, subdivision 2h, based upon property <br/>
<a id="pl.30.20"></a><var>30.20</var>taxes payable in 2012, the state must pay a supplemental refund such that the combined <br/>
<a id="pl.30.21"></a><var>30.21</var>amount of the regular refund under Minnesota Statutes, section 290A.04, subdivision 2h, <br/>
<a id="pl.30.22"></a><var>30.22</var>and the supplemental refund is equal to 90 percent of the increase over the greater of (1) 12 <br/>
<a id="pl.30.23"></a><var>30.23</var>percent of the payable 2011 property taxes, or (2) $100. The maximum combined refund <br/>
<a id="pl.30.24"></a><var>30.24</var>under Minnesota Statutes, section 290A.04, subdivision 2h, and this section is $1,000.<br/>
<a id="pl.30.25"></a><var>30.25</var>(b) The supplemental refund amount must be determined by the commissioner of <br/>
<a id="pl.30.26"></a><var>30.26</var>revenue based upon the information submitted with the claim for the regular refund and <br/>
<a id="pl.30.27"></a><var>30.27</var>must be combined with the regular refund for payment.<br/>
<a id="pl.30.28"></a><var>30.28</var>(c) Any supplemental refund paid under this section must be subtracted from <br/>
<a id="pl.30.29"></a><var>30.29</var>"property taxes payable" for the purposes of determining any refund amount under <br/>
<a id="pl.30.30"></a><var>30.30</var>Minnesota Statutes, section 290A.04, subdivision 2, based upon property taxes payable <br/>
<a id="pl.30.31"></a><var>30.31</var>in 2012.<br/>
<a id="pl.30.32"></a><var>30.32</var>(d) Any supplemental refund paid under this section must be subtracted from <br/>
<a id="pl.30.33"></a><var>30.33</var>"property taxes payable" for taxes payable in 2012 for the purposes of determining any <br/>
<a id="pl.30.34"></a><var>30.34</var>refund amount under Minnesota Statutes, section 290A.04, subdivision 2h, based upon <br/>
<a id="pl.30.35"></a><var>30.35</var>property taxes payable in 2013.<br/>
<a id="pl.31.1"></a><var>31.1</var>    Subd. 2. <b>Appropriation.</b> The amount necessary to make the payments required <br/>
<a id="pl.31.2"></a><var>31.2</var>under this section is appropriated to the commissioner of revenue from the general fund <br/>
<a id="pl.31.3"></a><var>31.3</var>for fiscal years 2013 and 2014.<br/>
<a id="pl.31.4"></a><var>31.4</var><b>EFFECTIVE DATE.</b>This section is effective for refund claims based on taxes <br/>
<a id="pl.31.5"></a><var>31.5</var>payable in 2012 only.<br/>
<br/>
<a id="bill.0.22.0"></a><a id="pl.31.6"></a><var>31.6</var>    Sec. 22. <b>SPECIAL RECOVERY FUND; CANCELLATION.</b><br/>
<a id="pl.31.7"></a><var>31.7</var>$4,300,000 of the balance in the Revenue Department service and recovery special <br/>
<a id="pl.31.8"></a><var>31.8</var>revenue fund is transferred in fiscal year 2012 to the general fund.<br/>
<a id="pl.31.9"></a><var>31.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.23.0"></a><a id="pl.31.10"></a><var>31.10</var>    Sec. 23. <b>ADMINISTRATION OF PROPERTY TAX REFUND CLAIMS; 2012.</b><br/>
<a id="pl.31.11"></a><var>31.11</var>In administering this bill for claims for refunds submitted using 17 percent of gross <br/>
<a id="pl.31.12"></a><var>31.12</var>rent as rent constituting property taxes under prior law, the commissioner shall recalculate <br/>
<a id="pl.31.13"></a><var>31.13</var>and pay the refund amounts using 15 percent of gross rent, subject to the reduced <br/>
<a id="pl.31.14"></a><var>31.14</var>maximum income limits, maximum refunds, and increased co-payment percentages in <br/>
<a id="pl.31.15"></a><var>31.15</var>this bill. The commissioner shall notify the claimant that the recalculation was mandated <br/>
<a id="pl.31.16"></a><var>31.16</var>by action of the 2012 legislature.<br/>
<br/>
<a id="bill.0.24.0"></a><a id="pl.31.17"></a><var>31.17</var>    Sec. 24. <b> REPEALER.</b><br/>
<a id="pl.31.18"></a><var>31.18</var>(a) Minnesota Statutes 2010, sections 290.01, subdivision 6b; and 290.0921, <br/>
<a id="pl.31.19"></a><var>31.19</var>subdivision 7, are repealed.<br/>
<a id="pl.31.20"></a><var>31.20</var>(b) Minnesota Statutes 2010, section 477A.013, subdivision 8, and  Minnesota <br/>
<a id="pl.31.21"></a><var>31.21</var>Statutes 2011 Supplement, section 477A.03, subdivision 2a, are repealed.<br/>
<a id="pl.31.22"></a><var>31.22</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective for returns filed for taxable years <br/>
<a id="pl.31.23"></a><var>31.23</var>beginning after December 31, 2011. Paragraph (b) is effective for aids payable in calendar <br/>
<a id="pl.31.24"></a><var>31.24</var>year 2013 and thereafter.<br/>