1.1 	A bill for an act
1.2 	relating to financing of state and local government; making changes to individual 
1.3 	income, corporate franchise, property, sales and use, mineral, liquor, aggregate 
1.4 	materials, gross receipts, estate, local, and other taxes and tax-related provisions; 
1.5 	updating references to the Internal Revenue Code; changing and providing 
1.6 	income and franchise tax credits, exemptions, and deductions; changing income 
1.7 	tax withholding requirements; establishing a veterans jobs tax credit; permitting 
1.8 	the filing of certain amended returns; modifying property tax levies, credits, 
1.9 	exemptions, proposed levies and property tax notices, and tax statements; 
1.10 	providing for use of a local levy; changing the state general levy; modifying 
1.11 	the renter property tax refund and providing a supplemental targeting refund; 
1.12 	modifying city aid payments and reporting requirements; modifying tax 
1.13 	increment financing district requirements; authorizing, changing, and extending 
1.14 	tax increment financing districts in certain local governments; changing sales 
1.15 	and use tax payment requirements and changing and providing exemptions; 
1.16 	modifying use of revenues and authorizing extension of certain sales and 
1.17 	lodging taxes and other local taxes for certain cities and making other local tax 
1.18 	changes; modifying filing, compliance, and payment requirements for estate tax 
1.19 	returns; modifying requirements for qualified farms and small business property; 
1.20 	modifying definitions and making clarifying, technical, and other changes 
1.21 	relating to the issuance of municipal bonds; authorizing certain local governments 
1.22 	to issue public debt; clarifying limits on taxation, spending, and incurring debt 
1.23 	based on market values; making technical and clarifying changes, and repealing 
1.24 	obsolete provisions related to the homestead market value credit; changing liquor 
1.25 	tax reporting and credits; requiring a funds transfer; allocating funds to border 
1.26 	city enterprise zones; changing local standard measures program reimbursement 
1.27 	requirements; requiring certain local budgetary information on local Web sites; 
1.28 	establishing a greater Minnesota internship program; requiring reports; canceling 
1.29 	funds to the general fund from the budget reserve account; appropriating 
1.30 	money; amending Minnesota Statutes 2010, sections 6.91, subdivision 2; 
1.31 	38.18; 40A.15, subdivision 2; 69.011, subdivision 1; 69.021, subdivisions 7, 
1.32 	8; 88.51, subdivision 3; 103B.245, subdivision 3; 103B.251, subdivision 8; 
1.33 	103B.635, subdivision 2; 103B.691, subdivision 2; 103D.905, subdivisions 2, 3, 
1.34 	8; 116J.8737, subdivisions 5, 8, by adding a subdivision; 117.025, subdivision 7; 
1.35 	127A.48, subdivision 1; 138.053; 144F.01, subdivision 4; 162.07, subdivisions 
1.36 	3, 4; 163.04, subdivision 3; 163.06, subdivision 6; 165.10, subdivision 1; 
1.37 	272.03, by adding subdivisions; 273.032; 273.11, subdivision 1; 273.113; 
1.38 	273.124, subdivisions 3a, 13; 273.13, subdivision 21b; 273.1398, subdivisions 
1.39 	3, 4; 275.011, subdivision 1; 275.025, subdivision 1; 275.065, subdivisions 1, 
2.1 	3; 275.077, subdivision 2; 275.71, subdivision 4; 276A.01, subdivisions 10, 
2.2 	12, 13, 15; 287.08; 287.23, subdivision 1; 289A.10, by adding a subdivision; 
2.3 	289A.12, by adding a subdivision; 289A.18, by adding a subdivision; 289A.20, 
2.4 	subdivisions 3, 4, by adding a subdivision; 289A.31, subdivision 5; 290.068, 
2.5 	subdivision 1; 290.0681, subdivisions 1, 3, 4, 5, 10; 290A.04, subdivision 2h; 
2.6 	297A.61, subdivision 4; 297A.68, subdivision 5; 297A.70, subdivision 4, by 
2.7 	adding subdivisions; 297A.815, subdivision 3; 297A.8155; 297G.04, subdivision 
2.8 	2; 298.75, by adding a subdivision; 353G.08, subdivision 2; 365.025, subdivision 
2.9 	4; 366.095, subdivision 1; 366.27; 368.01, subdivision 23; 368.47; 370.01; 
2.10 	373.40, subdivisions 1, 2, 4; 375.167, subdivision 1; 375.18, subdivision 3; 
2.11 	375.555; 383B.152; 383B.245; 383B.73, subdivision 1; 383E.20; 383E.23; 
2.12 	385.31; 394.36, subdivision 1; 398A.04, subdivision 8; 401.05, subdivision 
2.13 	3; 410.32; 412.221, subdivision 2; 412.301; 428A.02, subdivision 1; 430.102, 
2.14 	subdivision 2; 447.10; 450.19; 450.25; 458A.10; 458A.31, subdivision 1; 
2.15 	465.04; 469.033, subdivision 6; 469.034, subdivision 2; 469.053, subdivisions 
2.16 	4, 4a, 6; 469.107, subdivision 1; 469.169, by adding a subdivision; 469.174, 
2.17 	subdivisions 2, 10, by adding subdivisions; 469.175, subdivision 3; 469.176, 
2.18 	subdivisions 1b, 4b, by adding a subdivision; 469.1763, subdivisions 3, 4; 
2.19 	469.177, subdivision 1; 469.180, subdivision 2; 469.187; 469.206; 471.24; 
2.20 	471.571, subdivisions 1, 2; 471.73; 473.325, subdivision 2; 473.629; 473.661, 
2.21 	subdivision 3; 473.667, subdivision 9; 473.671; 473.711, subdivision 2a; 
2.22 	473F.02, subdivisions 12, 14, 15, 23; 474A.02, subdivision 23a; 475.521, 
2.23 	subdivisions 2, 4; 475.53, subdivisions 1, 3, 4; 475.58, subdivisions 2, 3b; 
2.24 	475.73, subdivision 1; 477A.011, subdivisions 32, 36; 477A.0124, subdivision 2; 
2.25 	477A.013, by adding a subdivision; 477A.017, subdivision 3; 641.23; 641.24; 
2.26 	645.44, by adding a subdivision; Minnesota Statutes 2011 Supplement, sections 
2.27 	116J.8737, subdivisions 1, 2; 276.04, subdivision 2; 289A.02, subdivision 7; 
2.28 	290.01, subdivisions 19, 31; 290A.03, subdivision 15; 291.005, subdivision 1; 
2.29 	291.03, subdivisions 8, 9, 10, 11; 295.53, subdivision 1; 297A.68, subdivision 42; 
2.30 	469.176, subdivisions 4c, 4m; 469.1763, subdivision 2; 477A.011, subdivision 
2.31 	20; 477A.013, subdivision 9; Laws 1971, chapter 773, section 1, subdivision 2, 
2.32 	as amended; Laws 1988, chapter 645, section 3, as amended; Laws 1998, chapter 
2.33 	389, article 8, section 43, subdivision 3, as amended; Laws 1999, chapter 243, 
2.34 	article 6, section 11; Laws 2002, chapter 377, article 3, section 25, as amended; 
2.35 	Laws 2003, chapter 127, article 12, section 28; Laws 2005, First Special Session 
2.36 	chapter 3, article 5, section 37, subdivisions 2, 4; Laws 2008, chapter 366, article 
2.37 	5, section 34, as amended; article 7, section 19, subdivision 3, as amended; Laws 
2.38 	2010, chapter 216, section 11; Laws 2010, chapter 389, article 1, section 12; 
2.39 	proposing coding for new law in Minnesota Statutes, chapters 136A; 290; 471; 
2.40 	repealing Minnesota Statutes 2010, sections 273.11, subdivision 1a; 276A.01, 
2.41 	subdivision 11; 276A.06, subdivision 10; 290.92, subdivision 31; 473F.02, 
2.42 	subdivision 13; 473F.08, subdivision 10; 477A.011, subdivision 21; Minnesota 
2.43 	Statutes 2011 Supplement, section 289A.60, subdivision 31; Laws 2009, chapter 
2.44 	88, article 4, section 23, as amended.
2.45 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.46 	ARTICLE 1
2.47 	PROPERTY TAXES

2.48 	Section 1. Minnesota Statutes 2010, section 6.91, subdivision 2, is amended to read:
2.49 		Subd. 2.Benefits of participation. (a) A county or city that elects to participate in 
2.50 	the standard measures program for 2011 is: (1) eligible for per capita reimbursement of 
2.51 	$0.14 per capita, but not to exceed $25,000 for any government entity; and (2) exempt 
3.1 	from levy limits under sections 275.70 to 275.74 for taxes payable in 2012, if levy limits 
3.2 	are in effect.
3.3 	(b) Any county or city that elects to participate in the standard measures program 
3.4 	for 2012 is eligible for per capita reimbursement of $0.14 per capita, but not to exceed 
3.5 	$25,000 for any government entity, provided that for 2012, a county or city with a 
3.6 	population over 5,000 must also participate in the expenditure-type reporting under section 
3.7 	471.703 in order to be eligible. Any jurisdiction participating in the comprehensive 
3.8 	performance measurement program is exempt from levy limits under sections 275.70 to 
3.9 	275.74 for taxes payable in 2013 if levy limits are in effect.
3.10 	(c) Any county or city that elects to participate in the standard measures program for 
3.11 	2013 or any year thereafter is eligible for per capita reimbursement of $0.14 per capita, 
3.12 	but not to exceed $25,000 for any government entity. Any jurisdiction participating in 
3.13 	the comprehensive performance measurement program for 2013 or any year thereafter is 
3.14 	exempt from levy limits under sections 275.70 to 275.74 for taxes payable in the following 
3.15 	year, if levy limits are in effect.

3.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

3.17 	Sec. 2. Minnesota Statutes 2010, section 273.113, is amended to read:
3.18 	273.113 TAX CREDIT FOR PROPERTY IN PROPOSED BOVINE 
3.19 	TUBERCULOSIS MODIFIED ACCREDITED MANAGEMENT ZONE.
3.20 		Subdivision 1.Definitions. For the purposes of this section, the following terms 
3.21 	have the meanings given to them:
3.22 	(1) "bovine tuberculosis modified accredited management zone" means the modified 
3.23 	accredited management zone designated by the Board of Animal Health under section 
3.24 	35.244;
3.25 	(2) "located within" means that the herd is kept in the area for at least a part of 
3.26 	calendar year 2006, 2007, or 2008; and
3.27 	(3) "animal" means cattle, bison, goats, and farmed cervidae.
3.28 		Subd. 2.Eligibility; amount of credit. Agricultural and rural vacant land classified 
3.29 	under section 273.13, subdivision 23, located within a bovine tuberculosis modified 
3.30 	accredited management zone is eligible for a property tax credit equal to the greater of: (1) 
3.31 	$5 per acre on the first 160 acres of the property where the herd had been located; or (2) an 
3.32 	amount equal to $5 per acre times five acres times the highest number of animals tested 
3.33 	on the property for bovine tuberculosis in a whole-herd test as reported by the Board of 
3.34 	Animal Health in 2006, 2007, or 2008 the amount of credit received under this section for 
4.1 	taxes payable in 2011. The amount of the credit cannot exceed the property tax payable on 
4.2 	the property where the herd had been located, excluding any tax attributable to residential 
4.3 	structures. To begin to qualify for the tax credit for taxes payable in 2012, the owner shall 
4.4 	file an application with the county by December 1 of the levy year July 1, 2012. For 
4.5 	taxes payable in 2012, the credit shall be paid as a direct payment to the property owner, 
4.6 	issued by the county within 30 days of receipt of the application, provided that there are 
4.7 	no delinquent taxes on the property. The credit must be given for each subsequent taxes 
4.8 	payable year until the credit terminates under subdivision 4. For taxes payable in 2013 
4.9 	and thereafter, the assessor shall indicate the amount of the property tax reduction on the 
4.10 	property tax statement of each taxpayer receiving a credit under this section. For taxes 
4.11 	payable in 2013 and thereafter, the credit paid pursuant to this section shall be deducted 
4.12 	from the tax due on the property as provided in section 273.1393.
4.13 		Subd. 3.Reimbursement for lost revenue. The county auditor shall certify to the 
4.14 	commissioner of revenue, as part of the abstracts of tax lists required to be filed with the 
4.15 	commissioner under section 275.29, the amount of tax lost to the county from the property 
4.16 	tax credit under subdivision 2, except that for taxes payable in 2012 only, the county shall 
4.17 	submit the credit amounts to the commissioner of revenue in a separate report, in a form 
4.18 	prescribed by the commissioner, prior to August 15, 2012. Any prior year adjustments 
4.19 	must also be certified in the abstracts of tax lists. The commissioner of revenue shall 
4.20 	review the certifications to determine their accuracy. The commissioner may make the 
4.21 	changes in the certification that are considered necessary or return a certification to the 
4.22 	county auditor for corrections. The commissioner shall reimburse each taxing district, 
4.23 	other than school districts, for the taxes lost. The payments must be made at the time 
4.24 	provided in section 473H.10 for payment to taxing jurisdictions in the same proportion 
4.25 	that the ad valorem tax is distributed, except that for taxes payable in 2012 the entire 
4.26 	reimbursement must be made to the county. Reimbursements to school districts must be 
4.27 	made as provided in section 273.1392. The amount necessary to make the reimbursements 
4.28 	under this section is annually appropriated from the general fund to the commissioner of 
4.29 	revenue.
4.30 		Subd. 4.Termination of credit. The credits provided under this section cease to 
4.31 	be available beginning with taxes payable in the year following the date when the Board 
4.32 	of Animal Health notifies the commissioner of revenue in writing that the board has 
4.33 	certified that the state is free ofdiscontinued all required bovine tuberculosis related 
4.34 	activities within the bovine tuberculosis management zone.

4.35 	EFFECTIVE DATE. This section is effective for taxes payable in 2012 and 
4.36 	thereafter.

5.1 	Sec. 3. Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read:
5.2 		Subdivision 1.Levy amount. The state general levy is levied against 
5.3 	commercial-industrial property and seasonal residential recreational property, as defined in 
5.4 	this section. The state general levy base amount is $592,000,000 $817,423,000 for taxes 
5.5 	payable in 2002 2013 and thereafter. For taxes payable in subsequent years, the levy base 
5.6 	amount is increased each year by multiplying the levy base amount for the prior year by 
5.7 	the sum of one plus the rate of increase, if any, in the implicit price deflator for government 
5.8 	consumption expenditures and gross investment for state and local governments prepared 
5.9 	by the Bureau of Economic Analysts of the United States Department of Commerce for 
5.10 	the 12-month period ending March 31 of the year prior to the year the taxes are payable.
5.11 	The tax under this section is not treated as a local tax rate under section 469.177 and is not 
5.12 	the levy of a governmental unit under chapters 276A and 473F.
5.13 	The commissioner shall increase or decrease the preliminary or final rate rates for a 
5.14 	year as necessary to account for errors and tax base changes that affected a preliminary or 
5.15 	final rate for either of the two preceding years. Adjustments are allowed to the extent that 
5.16 	the necessary information is available to the commissioner at the time the rates for a year 
5.17 	must be certified, and for the following reasons:
5.18 	(1) an erroneous report of taxable value by a local official;
5.19 	(2) an erroneous calculation by the commissioner; and
5.20 	(3) an increase or decrease in taxable value for commercial-industrial or seasonal 
5.21 	residential recreational property reported on the abstracts of tax lists submitted under 
5.22 	section 275.29 that was not reported on the abstracts of assessment submitted under 
5.23 	section 270C.89 for the same year.
5.24 	The commissioner may, but need not, make adjustments if the total difference in the tax 
5.25 	levied for the year would be less than $100,000.

5.26 	EFFECTIVE DATE. This section is effective for taxes payable in 2013 and 
5.27 	thereafter.

5.28 	Sec. 4. Minnesota Statutes 2010, section 275.065, subdivision 1, is amended to read:
5.29 		Subdivision 1.Proposed levy. (a) Notwithstanding any law or charter to the 
5.30 	contrary, on or before September 15, each taxing authority, other than a school district, 
5.31 	shall adopt a proposed budget and shall certify to the county auditor the proposed or, in 
5.32 	the case of a town, the final property tax levy for taxes payable in the following year. All 
5.33 	counties with a population of more than 5,000 and home rule charter or statutory cities 
5.34 	with a population of more than 5,000, shall also provide to the county auditor the county 
6.1 	or city Web site, if there is one, where the public is able to access the budget information 
6.2 	required to be reported under section 471.703.
6.3 	(b) On or before September 30, each school district that has not mutually agreed 
6.4 	with its home county to extend this date shall certify to the county auditor the proposed 
6.5 	property tax levy for taxes payable in the following year. Each school district that has 
6.6 	agreed with its home county to delay the certification of its proposed property tax levy 
6.7 	must certify its proposed property tax levy for the following year no later than October 
6.8 	7. The school district shall certify the proposed levy as:
6.9 	(1) a specific dollar amount by school district fund, broken down between 
6.10 	voter-approved and non-voter-approved levies and between referendum market value 
6.11 	and tax capacity levies; or
6.12 	(2) the maximum levy limitation certified by the commissioner of education 
6.13 	according to section 126C.48, subdivision 1.
6.14 	(c) If the board of estimate and taxation or any similar board that establishes 
6.15 	maximum tax levies for taxing jurisdictions within a first class city certifies the maximum 
6.16 	property tax levies for funds under its jurisdiction by charter to the county auditor by 
6.17 	September 15, the city shall be deemed to have certified its levies for those taxing 
6.18 	jurisdictions.
6.19 	(d) For purposes of this section, "taxing authority" includes all home rule and 
6.20 	statutory cities, towns, counties, school districts, and special taxing districts as defined 
6.21 	in section 275.066. Intermediate school districts that levy a tax under chapter 124 or 
6.22 	136D, joint powers boards established under sections 123A.44 to 123A.446, and Common 
6.23 	School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing 
6.24 	districts for purposes of this section.
6.25 	(e) At the meeting at which the taxing authority, other than a town, adopts its 
6.26 	proposed tax levy under paragraph (a) or (b), the taxing authority shall announce the 
6.27 	time and place of its subsequent regularly scheduled meetings at which the budget and 
6.28 	levy will be discussed and at which the public will be allowed to speak. The time and 
6.29 	place of those meetingsThe following information must be included in the proceedings 
6.30 	or summary of proceedings published in the official newspaper of the taxing authority 
6.31 	under section 123B.09, 375.12, or 412.191:
6.32 	(1) the time and place of the meetings described in this paragraph; and
6.33 	(2) a statement that the budget information required to be reported under section 
6.34 	471.703 is available on the county or city Web site, if there is one.

6.35 	EFFECTIVE DATE. This section is effective July 1, 2012.

7.1 	Sec. 5. Minnesota Statutes 2010, section 275.065, subdivision 3, is amended to read:
7.2 		Subd. 3.Notice of proposed property taxes. (a) The county auditor shall prepare 
7.3 	and the county treasurer shall deliver after November 10 and on or before November 24 
7.4 	each year, by first class mail to each taxpayer at the address listed on the county's current 
7.5 	year's assessment roll, a notice of proposed property taxes. Upon written request by 
7.6 	the taxpayer, the treasurer may send the notice in electronic form or by electronic mail 
7.7 	instead of on paper or by ordinary mail.
7.8 	(b) The commissioner of revenue shall prescribe the form of the notice.
7.9 	(c) The notice must inform taxpayers that it contains the amount of property taxes 
7.10 	each taxing authority proposes to collect for taxes payable the following year. In the 
7.11 	case of a town, or in the case of the state general tax, the final tax amount will be its 
7.12 	proposed tax. The notice must clearly state for each city that has a population over 500, 
7.13 	county, school district, regional library authority established under section 134.201, and 
7.14 	metropolitan taxing districts as defined in paragraph (i), the time and place of a meeting 
7.15 	for each taxing authority in which the budget and levy will be discussed and public input 
7.16 	allowed, prior to the final budget and levy determination. The notice must clearly state 
7.17 	for each county with a population of more than 5,000 and for each city with a population 
7.18 	of more than 5,000 that the budget information required to be reported under section 
7.19 	471.703 is available on the county or city Web site, if there is one. The taxing authorities 
7.20 	must provide the county auditor with the information to be included in the notice on or 
7.21 	before the time it certifies its proposed levy under subdivision 1. The public must be 
7.22 	allowed to speak at that meeting, which must occur after November 24 and must not be 
7.23 	held before 6:00 p.m. It must provide a telephone number for the taxing authority that 
7.24 	taxpayers may call if they have questions related to the notice and an address where 
7.25 	comments will be received by mail, except that no notice required under this section 
7.26 	shall be interpreted as requiring the printing of a personal telephone number or address 
7.27 	as the contact information for a taxing authority. If a taxing authority does not maintain 
7.28 	public offices where telephone calls can be received by the authority, the authority may 
7.29 	inform the county of the lack of a public telephone number and the county shall not list a 
7.30 	telephone number for that taxing authority.
7.31 	(d) The notice must state for each parcel:
7.32 	(1) the market value of the property as determined under section 273.11, and used 
7.33 	for computing property taxes payable in the following year and for taxes payable in the 
7.34 	current year as each appears in the records of the county assessor on November 1 of the 
7.35 	current year; and, in the case of residential property, whether the property is classified as 
8.1 	homestead or nonhomestead. The notice must clearly inform taxpayers of the years to 
8.2 	which the market values apply and that the values are final values;
8.3 	(2) the items listed below, shown separately by county, city or town, and state general 
8.4 	tax, net of the residential and agricultural homestead credit under section 273.1384, voter 
8.5 	approved school levy, other local school levy, and the sum of the special taxing districts, 
8.6 	and as a total of all taxing authorities:
8.7 	(i) the actual tax for taxes payable in the current year; and
8.8 	(ii) the proposed tax amount.
8.9 	If the county levy under clause (2) includes an amount for a lake improvement 
8.10 	district as defined under sections 103B.501 to 103B.581, the amount attributable for that 
8.11 	purpose must be separately stated from the remaining county levy amount.
8.12 	In the case of a town or the state general tax, the final tax shall also be its proposed 
8.13 	tax unless the town changes its levy at a special town meeting under section 365.52. If a 
8.14 	school district has certified under section 126C.17, subdivision 9, that a referendum will 
8.15 	be held in the school district at the November general election, the county auditor must 
8.16 	note next to the school district's proposed amount that a referendum is pending and that, if 
8.17 	approved by the voters, the tax amount may be higher than shown on the notice. In the 
8.18 	case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be 
8.19 	listed separately from the remaining amount of the city's levy. In the case of the city of 
8.20 	St. Paul, the levy for the St. Paul Library Agency must be listed separately from the 
8.21 	remaining amount of the city's levy. In the case of Ramsey County, any amount levied 
8.22 	under section 134.07 may be listed separately from the remaining amount of the county's 
8.23 	levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax 
8.24 	under chapter 276A or 473F applies, the proposed tax levy on the captured value or the 
8.25 	proposed tax levy on the tax capacity subject to the areawide tax must each be stated 
8.26 	separately and not included in the sum of the special taxing districts; and
8.27 	(3) the increase or decrease between the total taxes payable in the current year and 
8.28 	the total proposed taxes, expressed as a percentage.
8.29 	For purposes of this section, the amount of the tax on homesteads qualifying under 
8.30 	the senior citizens' property tax deferral program under chapter 290B is the total amount 
8.31 	of property tax before subtraction of the deferred property tax amount.
8.32 	(e) The notice must clearly state that the proposed or final taxes do not include 
8.33 	the following:
8.34 	(1) special assessments;
8.35 	(2) levies approved by the voters after the date the proposed taxes are certified, 
8.36 	including bond referenda and school district levy referenda;
9.1 	(3) a levy limit increase approved by the voters by the first Tuesday after the first 
9.2 	Monday in November of the levy year as provided under section 275.73;
9.3 	(4) amounts necessary to pay cleanup or other costs due to a natural disaster 
9.4 	occurring after the date the proposed taxes are certified;
9.5 	(5) amounts necessary to pay tort judgments against the taxing authority that become 
9.6 	final after the date the proposed taxes are certified; and
9.7 	(6) the contamination tax imposed on properties which received market value 
9.8 	reductions for contamination.
9.9 	(f) Except as provided in subdivision 7, failure of the county auditor to prepare or 
9.10 	the county treasurer to deliver the notice as required in this section does not invalidate the 
9.11 	proposed or final tax levy or the taxes payable pursuant to the tax levy.
9.12 	(g) If the notice the taxpayer receives under this section lists the property as 
9.13 	nonhomestead, and satisfactory documentation is provided to the county assessor by the 
9.14 	applicable deadline, and the property qualifies for the homestead classification in that 
9.15 	assessment year, the assessor shall reclassify the property to homestead for taxes payable 
9.16 	in the following year.
9.17 	(h) In the case of class 4 residential property used as a residence for lease or rental 
9.18 	periods of 30 days or more, the taxpayer must either:
9.19 	(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, 
9.20 	renter, or lessee; or
9.21 	(2) post a copy of the notice in a conspicuous place on the premises of the property.
9.22 	The notice must be mailed or posted by the taxpayer by November 27 or within 
9.23 	three days of receipt of the notice, whichever is later. A taxpayer may notify the county 
9.24 	treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to 
9.25 	which the notice must be mailed in order to fulfill the requirements of this paragraph.
9.26 	(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing 
9.27 	districts" means the following taxing districts in the seven-county metropolitan area that 
9.28 	levy a property tax for any of the specified purposes listed below:
9.29 	(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 
9.30 	473.446, 473.521, 473.547, or 473.834;
9.31 	(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; 
9.32 	and
9.33 	(3) Metropolitan Mosquito Control Commission under section 473.711.
9.34 	For purposes of this section, any levies made by the regional rail authorities in the 
9.35 	county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
9.36 	398A shall be included with the appropriate county's levy.
10.1 	(j) The governing body of a county, city, or school district may, with the consent 
10.2 	of the county board, include supplemental information with the statement of proposed 
10.3 	property taxes about the impact of state aid increases or decreases on property tax 
10.4 	increases or decreases and on the level of services provided in the affected jurisdiction. 
10.5 	This supplemental information may include information for the following year, the current 
10.6 	year, and for as many consecutive preceding years as deemed appropriate by the governing 
10.7 	body of the county, city, or school district. It may include only information regarding:
10.8 	(1) the impact of inflation as measured by the implicit price deflator for state and 
10.9 	local government purchases;
10.10 	(2) population growth and decline;
10.11 	(3) state or federal government action; and
10.12 	(4) other financial factors that affect the level of property taxation and local services 
10.13 	that the governing body of the county, city, or school district may deem appropriate to 
10.14 	include.
10.15 	The information may be presented using tables, written narrative, and graphic 
10.16 	representations and may contain instruction toward further sources of information or 
10.17 	opportunity for comment.

10.18 	EFFECTIVE DATE. This section is effective July 1, 2012.

10.19 	Sec. 6. Minnesota Statutes 2010, section 275.065, subdivision 3, is amended to read:
10.20 		Subd. 3.Notice of proposed property taxes. (a) The county auditor shall prepare 
10.21 	and the county treasurer shall deliver after November 10 and on or before November 24 
10.22 	each year, by first class mail to each taxpayer at the address listed on the county's current 
10.23 	year's assessment roll, a notice of proposed property taxes. Upon written request by 
10.24 	the taxpayer, the treasurer may send the notice in electronic form or by electronic mail 
10.25 	instead of on paper or by ordinary mail.
10.26 	(b) The commissioner of revenue shall prescribe the form of the notice.
10.27 	(c) The notice must inform taxpayers that it contains the amount of property taxes 
10.28 	each taxing authority proposes to collect for taxes payable the following year. In the 
10.29 	case of a town, or in the case of the state general tax, the final tax amount will be its 
10.30 	proposed tax. The notice must clearly state For each city that has a population over 500, 
10.31 	county, school district, regional library authority established under section 134.201, and 
10.32 	metropolitan taxing districts as defined in paragraph (i), the notice must state the time and 
10.33 	place of a meeting for each taxing authority in which the budget and levy will be discussed 
10.34 	and public input allowed, prior to the final budget and levy determination. For each special 
10.35 	taxing district, the notice must: (1) list separately any levy by a special taxing district that 
11.1 	exceeds 25 percent of the total of all special taxing district levies; and (2) provide county 
11.2 	government contact information where additional information may be obtained for each 
11.3 	special taxing district. The taxing authorities must provide the county auditor with the 
11.4 	information to be included in the notice on or before the time it certifies its proposed 
11.5 	levy under subdivision 1. The public must be allowed to speak at that meeting, which 
11.6 	must occur after November 24 and must not be held before 6:00 p.m. It must provide a 
11.7 	telephone number for the taxing authority that taxpayers may call if they have questions 
11.8 	related to the notice and an address where comments will be received by mail, except that 
11.9 	no notice required under this section shall be interpreted as requiring the printing of a 
11.10 	personal telephone number or address as the contact information for a taxing authority. If 
11.11 	a taxing authority does not maintain public offices where telephone calls can be received 
11.12 	by the authority, the authority may inform the county of the lack of a public telephone 
11.13 	number and the county shall not list a telephone number for that taxing authority.
11.14 	(d) The notice must state for each parcel:
11.15 	(1) the market value of the property as determined under section 273.11, and used 
11.16 	for computing property taxes payable in the following year and for taxes payable in the 
11.17 	current year as each appears in the records of the county assessor on November 1 of the 
11.18 	current year; and, in the case of residential property, whether the property is classified as 
11.19 	homestead or nonhomestead. The notice must clearly inform taxpayers of the years to 
11.20 	which the market values apply and that the values are final values;
11.21 	(2) the items listed below, shown separately by county, city or town, and state 
11.22 	general tax, net of the residential and agricultural homestead credit under section 
11.23 	273.1384, voter approved school levy, other local school levy, and the sum of the each
11.24 	special taxing districts district, provided that the levies of all special taxing districts whose 
11.25 	levies do not exceed 25 percent of the total amount of all special taxing district levies may 
11.26 	be aggregated, and as a total of for all taxing authorities:
11.27 	(i) the actual tax for taxes payable in the current year; and
11.28 	(ii) the proposed tax amount.
11.29 	If the county levy under clause (2) includes an amount for a lake improvement 
11.30 	district as defined under sections 103B.501 to 103B.581, the amount attributable for that 
11.31 	purpose must be separately stated from the remaining county levy amount.
11.32 	In the case of a town or the state general tax, the final tax shall also be its proposed 
11.33 	tax unless the town changes its levy at a special town meeting under section 365.52. If a 
11.34 	school district has certified under section 126C.17, subdivision 9, that a referendum will 
11.35 	be held in the school district at the November general election, the county auditor must 
11.36 	note next to the school district's proposed amount that a referendum is pending and that, if 
12.1 	approved by the voters, the tax amount may be higher than shown on the notice. In the 
12.2 	case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be 
12.3 	listed separately from the remaining amount of the city's levy. In the case of the city of 
12.4 	St. Paul, the levy for the St. Paul Library Agency must be listed separately from the 
12.5 	remaining amount of the city's levy. In the case of Ramsey County, any amount levied 
12.6 	under section 134.07 may be listed separately from the remaining amount of the county's 
12.7 	levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax 
12.8 	under chapter 276A or 473F applies, the proposed tax levy on the captured value or the 
12.9 	proposed tax levy on the tax capacity subject to the areawide tax must each be stated 
12.10 	separately and not included in the sum of the special taxing districts; and
12.11 	(3) the increase or decrease between the total taxes payable in the current year and 
12.12 	the total proposed taxes, expressed as a percentage.
12.13 	For purposes of this section, the amount of the tax on homesteads qualifying under 
12.14 	the senior citizens' property tax deferral program under chapter 290B is the total amount 
12.15 	of property tax before subtraction of the deferred property tax amount.
12.16 	(e) The notice must clearly state that the proposed or final taxes do not include 
12.17 	the following:
12.18 	(1) special assessments;
12.19 	(2) levies approved by the voters after the date the proposed taxes are certified, 
12.20 	including bond referenda and school district levy referenda;
12.21 	(3) a levy limit increase approved by the voters by the first Tuesday after the first 
12.22 	Monday in November of the levy year as provided under section 275.73;
12.23 	(4) amounts necessary to pay cleanup or other costs due to a natural disaster 
12.24 	occurring after the date the proposed taxes are certified;
12.25 	(5) amounts necessary to pay tort judgments against the taxing authority that become 
12.26 	final after the date the proposed taxes are certified; and
12.27 	(6) the contamination tax imposed on properties which received market value 
12.28 	reductions for contamination.
12.29 	(f) Except as provided in subdivision 7, failure of the county auditor to prepare or 
12.30 	the county treasurer to deliver the notice as required in this section does not invalidate the 
12.31 	proposed or final tax levy or the taxes payable pursuant to the tax levy.
12.32 	(g) If the notice the taxpayer receives under this section lists the property as 
12.33 	nonhomestead, and satisfactory documentation is provided to the county assessor by the 
12.34 	applicable deadline, and the property qualifies for the homestead classification in that 
12.35 	assessment year, the assessor shall reclassify the property to homestead for taxes payable 
12.36 	in the following year.
13.1 	(h) In the case of class 4 residential property used as a residence for lease or rental 
13.2 	periods of 30 days or more, the taxpayer must either:
13.3 	(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, 
13.4 	renter, or lessee; or
13.5 	(2) post a copy of the notice in a conspicuous place on the premises of the property.
13.6 	The notice must be mailed or posted by the taxpayer by November 27 or within 
13.7 	three days of receipt of the notice, whichever is later. A taxpayer may notify the county 
13.8 	treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to 
13.9 	which the notice must be mailed in order to fulfill the requirements of this paragraph.
13.10 	(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing 
13.11 	districts" means the following taxing districts in the seven-county metropolitan area that 
13.12 	levy a property tax for any of the specified purposes listed below:
13.13 	(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 
13.14 	473.446, 473.521, 473.547, or 473.834;
13.15 	(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; 
13.16 	and
13.17 	(3) Metropolitan Mosquito Control Commission under section 473.711.
13.18 	For purposes of this section, any levies made by the regional rail authorities in the 
13.19 	county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
13.20 	398A shall be included with the appropriate county's levy.
13.21 	(j) The governing body of a county, city, or school district may, with the consent 
13.22 	of the county board, include supplemental information with the statement of proposed 
13.23 	property taxes about the impact of state aid increases or decreases on property tax 
13.24 	increases or decreases and on the level of services provided in the affected jurisdiction. 
13.25 	This supplemental information may include information for the following year, the current 
13.26 	year, and for as many consecutive preceding years as deemed appropriate by the governing 
13.27 	body of the county, city, or school district. It may include only information regarding:
13.28 	(1) the impact of inflation as measured by the implicit price deflator for state and 
13.29 	local government purchases;
13.30 	(2) population growth and decline;
13.31 	(3) state or federal government action; and
13.32 	(4) other financial factors that affect the level of property taxation and local services 
13.33 	that the governing body of the county, city, or school district may deem appropriate to 
13.34 	include.
14.1 	The information may be presented using tables, written narrative, and graphic 
14.2 	representations and may contain instruction toward further sources of information or 
14.3 	opportunity for comment.

14.4 	EFFECTIVE DATE. This section is effective for tax statements relating to taxes 
14.5 	payable in 2014 and thereafter.

14.6 	Sec. 7. Minnesota Statutes 2011 Supplement, section 276.04, subdivision 2, is 
14.7 	amended to read:
14.8 		Subd. 2.Contents of tax statements. (a) The treasurer shall provide for the 
14.9 	printing of the tax statements. The commissioner of revenue shall prescribe the form of 
14.10 	the property tax statement and its contents. The tax statement must not state or imply 
14.11 	that property tax credits are paid by the state of Minnesota. The statement must contain 
14.12 	a tabulated statement of the dollar amount due to each taxing authority and the amount 
14.13 	of the state tax from the parcel of real property for which a particular tax statement is 
14.14 	prepared. The dollar amounts attributable to the county, the state tax, the voter approved 
14.15 	school tax, the other local school tax, the township or municipality, and the total of 
14.16 	the metropolitan special taxing districts as defined in section 275.065, subdivision 3, 
14.17 	paragraph (i), must be separately stated. The amounts due all other special taxing districts, 
14.18 	if any, may be aggregated except that (1) any levies made by the regional rail authorities 
14.19 	in the county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under 
14.20 	chapter 398A shall be listed on a separate line directly under the appropriate county's 
14.21 	levy, and (2) any levy by a special taxing district that exceeds 25 percent of the total of all 
14.22 	special taxing district levies on a tax statement must be separately stated. If the county 
14.23 	levy under this paragraph includes an amount for a lake improvement district as defined 
14.24 	under sections 103B.501 to 103B.581, the amount attributable for that purpose must be 
14.25 	separately stated from the remaining county levy amount. In the case of Ramsey County, 
14.26 	if the county levy under this paragraph includes an amount for public library service 
14.27 	under section 134.07, the amount attributable for that purpose may be separated from the 
14.28 	remaining county levy amount. The amount of the tax on homesteads qualifying under the 
14.29 	senior citizens' property tax deferral program under chapter 290B is the total amount of 
14.30 	property tax before subtraction of the deferred property tax amount. The amount of the 
14.31 	tax on contamination value imposed under sections 270.91 to 270.98, if any, must also 
14.32 	be separately stated. The dollar amounts, including the dollar amount of any special 
14.33 	assessments, may be rounded to the nearest even whole dollar. For purposes of this section 
14.34 	whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar. 
15.1 	The amount of market value excluded under section 273.11, subdivision 16, if any, must 
15.2 	also be listed on the tax statement.
15.3 	(b) The property tax statements for manufactured homes and sectional structures 
15.4 	taxed as personal property shall contain the same information that is required on the 
15.5 	tax statements for real property.
15.6 	(c) Real and personal property tax statements must contain the following information 
15.7 	in the order given in this paragraph. The information must contain the current year tax 
15.8 	information in the right column with the corresponding information for the previous year 
15.9 	in a column on the left:
15.10 	(1) the property's estimated market value under section 273.11, subdivision 1;
15.11 	(2) the property's homestead market value exclusion under section 273.13, 
15.12 	subdivision 35;
15.13 	(3) the property's taxable market value after reductions under sections 273.11, 
15.14 	subdivisions 1a and 16, and 273.13, subdivision 35;
15.15 	(4) the property's gross tax, before credits;
15.16 	(5) for homestead agricultural properties, the credit under section 273.1384;
15.17 	(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 
15.18 	273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of 
15.19 	credit received under section 273.135 must be separately stated and identified as "taconite 
15.20 	tax relief"; and
15.21 	(7) the net tax payable in the manner required in paragraph (a).
15.22 	(d) If the county uses envelopes for mailing property tax statements and if the county 
15.23 	agrees, a taxing district may include a notice with the property tax statement notifying 
15.24 	taxpayers when the taxing district will begin its budget deliberations for the current 
15.25 	year, and encouraging taxpayers to attend the hearings. If the county allows notices to 
15.26 	be included in the envelope containing the property tax statement, and if more than 
15.27 	one taxing district relative to a given property decides to include a notice with the tax 
15.28 	statement, the county treasurer or auditor must coordinate the process and may combine 
15.29 	the information on a single announcement.

15.30 	EFFECTIVE DATE. This section is effective for tax statements relating to taxes 
15.31 	payable in 2014 and thereafter.

15.32 	Sec. 8. Minnesota Statutes 2010, section 290A.04, subdivision 2h, is amended to read:
15.33 		Subd. 2h.Additional refund. (a) If the gross property taxes payable on a homestead 
15.34 	increase more than 12 percent over the property taxes payable in the prior year on the same 
15.35 	property that is owned and occupied by the same owner on January 2 of both years, and the 
16.1 	amount of that increase is $100 or more, a claimant who is a homeowner shall be allowed 
16.2 	an additional refund equal to 60 75 percent of the amount of the increase over the greater 
16.3 	of 12 percent of the prior year's property taxes payable or $100. This subdivision shall not 
16.4 	apply to any increase in the gross property taxes payable attributable to improvements 
16.5 	made to the homestead after the assessment date for the prior year's taxes. This subdivision 
16.6 	shall not apply to any increase in the gross property taxes payable attributable to the 
16.7 	termination of valuation exclusions under section 273.11, subdivision 16.
16.8 	The maximum refund allowed under this subdivision is $1,000.
16.9 	(b) For purposes of this subdivision "gross property taxes payable" means property 
16.10 	taxes payable determined without regard to the refund allowed under this subdivision.
16.11 	(c) In addition to the other proofs required by this chapter, each claimant under 
16.12 	this subdivision shall file with the property tax refund return a copy of the property tax 
16.13 	statement for taxes payable in the preceding year or other documents required by the 
16.14 	commissioner.
16.15 	(d) Upon request, the appropriate county official shall make available the names and 
16.16 	addresses of the property taxpayers who may be eligible for the additional property tax 
16.17 	refund under this section. The information shall be provided on a magnetic computer 
16.18 	disk. The county may recover its costs by charging the person requesting the information 
16.19 	the reasonable cost for preparing the data. The information may not be used for any 
16.20 	purpose other than for notifying the homeowner of potential eligibility and assisting the 
16.21 	homeowner, without charge, in preparing a refund claim.

16.22 	EFFECTIVE DATE. This section is effective beginning with refunds based on 
16.23 	taxes payable in 2013.

16.24 	Sec. 9. [471.703] EXPENDITURE TYPE REPORTING.
16.25 		Subdivision 1.Purpose. In order to facilitate involvement of the public in local 
16.26 	government budgeting, municipalities shall provide the following budgetary information 
16.27 	on a municipal Web site, except as provided in subdivision 4, and publicize the availability 
16.28 	of this information as part of the property tax and budget notices required in section 
16.29 	275.065.
16.30 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
16.31 	meanings given in this subdivision.
16.32 	(b) "Municipality" means a county with a population of more than 5,000 or a home 
16.33 	rule charter or statutory city with a population of more than 5,000.
16.34 	(c) "Population" means the population of the municipality as established by the last 
16.35 	federal census, by a special census conducted under contract with the United States Bureau 
17.1 	of the Census, by a population estimate made by the Metropolitan Council pursuant to 
17.2 	section 473.24, or by a population estimate of the state demographer made pursuant to 
17.3 	section 4A.02, whichever is the most recent as to the stated date of the count or estimate for 
17.4 	the preceding calendar year, and which has been certified to the commissioner of revenue 
17.5 	on or before July 15 of the year in which the information is required to be reported.
17.6 		Subd. 3.Electronic budgetary information. (a) By July 31 of each year, a 
17.7 	municipality shall publish on its Web site, except as provided in subdivision 4, four years 
17.8 	of budget information on both revenues and expenditures organized by function and by 
17.9 	expenditure type. The four years shall include actual data from the three most recently 
17.10 	concluded budget years and estimated data for the current budget year.
17.11 	(b) The governmental funds included in the budget information required under 
17.12 	this section shall include the municipality's general fund, debt service fund, and special 
17.13 	revenue funds, except for special revenue funds specifically used for the acquisition and 
17.14 	construction of major capital facilities. The reported information shall also exclude 
17.15 	enterprise funds and fiduciary funds.
17.16 	(c) The forms and reporting requirements for revenues and expenditures by function 
17.17 	shall be established by the state auditor's office and shall be based on the revenue and 
17.18 	expenditure breakdowns used by that office in the five-year summary tables for annual 
17.19 	revenue, expenditure, and debt reports for counties and cities with a population over 
17.20 	2,500, under section 6.75.
17.21 	(d) The forms and reporting requirements for expenditures by expenditure type shall 
17.22 	be established by the state auditor's office and at minimum shall include the following line 
17.23 	items: employee costs, purchased services, supplies, central services, capital items, debt 
17.24 	service, transfer to other funds, and miscellaneous; with employee costs further subdivided 
17.25 	into the following items: wages and salaries, pensions, Social Security, health care, and 
17.26 	other benefits. The state auditor shall consult with the commissioner of management and 
17.27 	budget, city and county representatives, and members of the governmental accounting 
17.28 	community in developing the definition of expenditure types for reporting purposes.
17.29 		Subd. 4.Alternative publication of budgetary information. A municipality 
17.30 	that does not maintain an official Web site must either (1) set up a separate Web site to 
17.31 	make accessible the budgetary information as required in subdivision 3, or (2) publish the 
17.32 	same information required in subdivision 3 by August 31 of each year in one issue of the 
17.33 	official newspaper of the municipality. If a county publishes the information in its official 
17.34 	newspaper it must also publish the same information in one other newspaper, if one of 
17.35 	general circulation is located in a different city in the county than the official newspaper. 
17.36 	The state auditor must prescribe the form for the newspaper notice.
18.1 		Subd. 5.Incentives. In 2012 only, a city or county that complies with the 
18.2 	requirement of this section and section 6.91, subdivision 1, shall receive the benefits 
18.3 	pursuant to section 6.91, subdivision 2.
18.4 		Subd. 6.Penalties. In 2013 and thereafter, failure of a municipality to provide 
18.5 	the information required in this section shall result in the withholding of aids payable 
18.6 	the following calendar year under sections 162.01 to 162.14, 423A.02, and 477A.011 
18.7 	to 477A.014.

18.8 	EFFECTIVE DATE. This section is effective July 1, 2012.

18.9 	Sec. 10. Minnesota Statutes 2010, section 477A.011, subdivision 36, is amended to 
18.10 	read:
18.11 		Subd. 36.City aid base. (a) Except as otherwise provided in this subdivision, 
18.12 	"city aid base" is zero.
18.13 	(b) The city aid base for any city with a population less than 500 is increased by 
18.14 	$40,000 for aids payable in calendar year 1995 and thereafter, and the maximum amount 
18.15 	of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also 
18.16 	increased by $40,000 for aids payable in calendar year 1995 only, provided that:
18.17 	(i) the average total tax capacity rate for taxes payable in 1995 exceeds 200 percent;
18.18 	(ii) the city portion of the tax capacity rate exceeds 100 percent; and
18.19 	(iii) its city aid base is less than $60 per capita.
18.20 	(c) The city aid base for a city is increased by $20,000 in 1998 and thereafter and 
18.21 	the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
18.22 	paragraph (c), is also increased by $20,000 in calendar year 1998 only, provided that:
18.23 	(i) the city has a population in 1994 of 2,500 or more;
18.24 	(ii) the city is located in a county, outside of the metropolitan area, which contains a 
18.25 	city of the first class;
18.26 	(iii) the city's net tax capacity used in calculating its 1996 aid under section 
18.27 	477A.013 is less than $400 per capita; and
18.28 	(iv) at least four percent of the total net tax capacity, for taxes payable in 1996, of 
18.29 	property located in the city is classified as railroad property.
18.30 	(d) The city aid base for a city is increased by $200,000 in 1999 and thereafter and 
18.31 	the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
18.32 	paragraph (c), is also increased by $200,000 in calendar year 1999 only, provided that:
18.33 	(i) the city was incorporated as a statutory city after December 1, 1993;
18.34 	(ii) its city aid base does not exceed $5,600; and
18.35 	(iii) the city had a population in 1996 of 5,000 or more.
19.1 	(e) The city aid base for a city is increased by $150,000 for aids payable in 2000 and 
19.2 	thereafter, and the maximum amount of total aid it may receive under section 477A.013, 
19.3 	subdivision 9, paragraph (c), is also increased by $150,000 in calendar year 2000 only, 
19.4 	provided that:
19.5 	(1) the city has a population that is greater than 1,000 and less than 2,500;
19.6 	(2) its commercial and industrial percentage for aids payable in 1999 is greater 
19.7 	than 45 percent; and
19.8 	(3) the total market value of all commercial and industrial property in the city 
19.9 	for assessment year 1999 is at least 15 percent less than the total market value of all 
19.10 	commercial and industrial property in the city for assessment year 1998.
19.11 	(f) The city aid base for a city is increased by $200,000 in 2000 and thereafter, and 
19.12 	the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
19.13 	paragraph (c), is also increased by $200,000 in calendar year 2000 only, provided that:
19.14 	(1) the city had a population in 1997 of 2,500 or more;
19.15 	(2) the net tax capacity of the city used in calculating its 1999 aid under section 
19.16 	477A.013 is less than $650 per capita;
19.17 	(3) the pre-1940 housing percentage of the city used in calculating 1999 aid under 
19.18 	section 477A.013 is greater than 12 percent;
19.19 	(4) the 1999 local government aid of the city under section 477A.013 is less than 
19.20 	20 percent of the amount that the formula aid of the city would have been if the need 
19.21 	increase percentage was 100 percent; and
19.22 	(5) the city aid base of the city used in calculating aid under section 477A.013 
19.23 	is less than $7 per capita.
19.24 	(g) The city aid base for a city is increased by $102,000 in 2000 and thereafter, and 
19.25 	the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
19.26 	paragraph (c), is also increased by $102,000 in calendar year 2000 only, provided that:
19.27 	(1) the city has a population in 1997 of 2,000 or more;
19.28 	(2) the net tax capacity of the city used in calculating its 1999 aid under section 
19.29 	477A.013 is less than $455 per capita;
19.30 	(3) the net levy of the city used in calculating 1999 aid under section 477A.013 is 
19.31 	greater than $195 per capita; and
19.32 	(4) the 1999 local government aid of the city under section 477A.013 is less than 
19.33 	38 percent of the amount that the formula aid of the city would have been if the need 
19.34 	increase percentage was 100 percent.
20.1 	(h) The city aid base for a city is increased by $32,000 in 2001 and thereafter, and 
20.2 	the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
20.3 	paragraph (c), is also increased by $32,000 in calendar year 2001 only, provided that:
20.4 	(1) the city has a population in 1998 that is greater than 200 but less than 500;
20.5 	(2) the city's revenue need used in calculating aids payable in 2000 was greater 
20.6 	than $200 per capita;
20.7 	(3) the city net tax capacity for the city used in calculating aids available in 2000 
20.8 	was equal to or less than $200 per capita;
20.9 	(4) the city aid base of the city used in calculating aid under section 477A.013 
20.10 	is less than $65 per capita; and
20.11 	(5) the city's formula aid for aids payable in 2000 was greater than zero.
20.12 	(i) The city aid base for a city is increased by $7,200 in 2001 and thereafter, and 
20.13 	the maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
20.14 	paragraph (c), is also increased by $7,200 in calendar year 2001 only, provided that:
20.15 	(1) the city had a population in 1998 that is greater than 200 but less than 500;
20.16 	(2) the city's commercial industrial percentage used in calculating aids payable in 
20.17 	2000 was less than ten percent;
20.18 	(3) more than 25 percent of the city's population was 60 years old or older according 
20.19 	to the 1990 census;
20.20 	(4) the city aid base of the city used in calculating aid under section 477A.013 
20.21 	is less than $15 per capita; and
20.22 	(5) the city's formula aid for aids payable in 2000 was greater than zero.
20.23 	(j) The city aid base for a city is increased by $45,000 in 2001 and thereafter and 
20.24 	by an additional $50,000 in calendar years 2002 to 2011, and the maximum amount of 
20.25 	total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also 
20.26 	increased by $45,000 in calendar year 2001 only, and by $50,000 in calendar year 2002 
20.27 	only, provided that:
20.28 	(1) the net tax capacity of the city used in calculating its 2000 aid under section 
20.29 	477A.013 is less than $810 per capita;
20.30 	(2) the population of the city declined more than two percent between 1988 and 1998;
20.31 	(3) the net levy of the city used in calculating 2000 aid under section 477A.013 is 
20.32 	greater than $240 per capita; and
20.33 	(4) the city received less than $36 per capita in aid under section 477A.013, 
20.34 	subdivision 9, for aids payable in 2000.
20.35 	(k) The city aid base for a city with a population of 10,000 or more which is located 
20.36 	outside of the seven-county metropolitan area is increased in 2002 and thereafter, and the 
21.1 	maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
21.2 	paragraph (b) or (c), is also increased in calendar year 2002 only, by an amount equal to 
21.3 	the lesser of:
21.4 	(1)(i) the total population of the city, as determined by the United States Bureau of 
21.5 	the Census, in the 2000 census, (ii) minus 5,000, (iii) times 60; or
21.6 	(2) $2,500,000.
21.7 	(l) The city aid base is increased by $50,000 in 2002 and thereafter, and the 
21.8 	maximum amount of total aid it may receive under section 477A.013, subdivision 9, 
21.9 	paragraph (c), is also increased by $50,000 in calendar year 2002 only, provided that:
21.10 	(1) the city is located in the seven-county metropolitan area;
21.11 	(2) its population in 2000 is between 10,000 and 20,000; and
21.12 	(3) its commercial industrial percentage, as calculated for city aid payable in 2001, 
21.13 	was greater than 25 percent.
21.14 	(m) The city aid base for a city is increased by $150,000 in calendar years 2002 to 
21.15 	2011 and by an additional $75,000 in calendar years 2009 to 2014 and the maximum 
21.16 	amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is 
21.17 	also increased by $150,000 in calendar year 2002 only and by $75,000 in calendar year 
21.18 	2009 only, provided that:
21.19 	(1) the city had a population of at least 3,000 but no more than 4,000 in 1999;
21.20 	(2) its home county is located within the seven-county metropolitan area;
21.21 	(3) its pre-1940 housing percentage is less than 15 percent; and
21.22 	(4) its city net tax capacity per capita for taxes payable in 2000 is less than $900 
21.23 	per capita.
21.24 	(n) The city aid base for a city is increased by $200,000 beginning in calendar 
21.25 	year 2003 and the maximum amount of total aid it may receive under section 477A.013, 
21.26 	subdivision 9, paragraph (c), is also increased by $200,000 in calendar year 2003 only, 
21.27 	provided that the city qualified for an increase in homestead and agricultural credit aid 
21.28 	under Laws 1995, chapter 264, article 8, section 18.
21.29 	(o) The city aid base for a city is increased by $200,000 in 2004 only and the 
21.30 	maximum amount of total aid it may receive under section 477A.013, subdivision 9, is 
21.31 	also increased by $200,000 in calendar year 2004 only, if the city is the site of a nuclear 
21.32 	dry cask storage facility.
21.33 	(p) The city aid base for a city is increased by $10,000 in 2004 and thereafter and the 
21.34 	maximum total aid it may receive under section 477A.013, subdivision 9, is also increased 
21.35 	by $10,000 in calendar year 2004 only, if the city was included in a federal major disaster 
22.1 	designation issued on April 1, 1998, and its pre-1940 housing stock was decreased by 
22.2 	more than 40 percent between 1990 and 2000.
22.3 	(q) The city aid base for a city is increased by $30,000 in 2009 and thereafter and the 
22.4 	maximum total aid it may receive under section 477A.013, subdivision 9, is also increased 
22.5 	by $25,000 in calendar year 2006 only if the city had a population in 2003 of at least 1,000 
22.6 	and has a state park for which the city provides rescue services and which comprised at 
22.7 	least 14 percent of the total geographic area included within the city boundaries in 2000.
22.8 	(r) The city aid base for a city is increased by $80,000 in 2009 and thereafter and 
22.9 	the minimum and maximum amount of total aid it may receive under section 477A.013, 
22.10 	subdivision 9, is also increased by $80,000 in calendar year 2009 only, if:
22.11 	(1) as of May 1, 2006, at least 25 percent of the tax capacity of the city is proposed 
22.12 	to be placed in trust status as tax-exempt Indian land;
22.13 	(2) the placement of the land is being challenged administratively or in court; and
22.14 	(3) due to the challenge, the land proposed to be placed in trust is still on the tax 
22.15 	rolls as of May 1, 2006.
22.16 	(s) The city aid base for a city is increased by $100,000 in 2007 and thereafter and 
22.17 	the minimum and maximum total amount of aid it may receive under this section is also 
22.18 	increased in calendar year 2007 only, provided that:
22.19 	(1) the city has a 2004 estimated population greater than 200 but less than 2,000;
22.20 	(2) its city net tax capacity for aids payable in 2006 was less than $300 per capita;
22.21 	(3) the ratio of its pay 2005 tax levy compared to its city net tax capacity for aids 
22.22 	payable in 2006 was greater than 110 percent; and
22.23 	(4) it is located in a county where at least 15,000 acres of land are classified as 
22.24 	tax-exempt Indian reservations according to the 2004 abstract of tax-exempt property.
22.25 	(t) The city aid base for a city is increased by $30,000 in 2009 only, and the 
22.26 	maximum total aid it may receive under section 477A.013, subdivision 9, is also increased 
22.27 	by $30,000 in calendar year 2009, only if the city had a population in 2005 of less than 
22.28 	3,000 and the city's boundaries as of 2007 were formed by the consolidation of two cities 
22.29 	and one township in 2002.
22.30 	(u) The city aid base for a city is increased by $100,000 in 2009 and thereafter, and 
22.31 	the maximum total aid it may receive under section 477A.013, subdivision 9, is also 
22.32 	increased by $100,000 in calendar year 2009 only, if the city had a city net tax capacity for 
22.33 	aids payable in 2007 of less than $150 per capita and the city experienced flooding on 
22.34 	March 14, 2007, that resulted in evacuation of at least 40 homes.
23.1 	(v) The city aid base for a city is increased by $100,000 in 2009 to 2013, and the 
23.2 	maximum total aid it may receive under section 477A.013, subdivision 9, is also increased 
23.3 	by $100,000 in calendar year 2009 only, if the city:
23.4 	(1) is located outside of the Minneapolis-St. Paul standard metropolitan statistical 
23.5 	area;
23.6 	(2) has a 2005 population greater than 7,000 but less than 8,000; and
23.7 	(3) has a 2005 net tax capacity per capita of less than $500.
23.8 	(w) The city aid base is increased by $25,000 in calendar years 2009 to 2013 and the 
23.9 	maximum amount of total aid it may receive under section 477A.013, subdivision 9, is 
23.10 	increased by $25,000 in calendar year 2009 only, provided that:
23.11 	(1) the city is located in the seven-county metropolitan area;
23.12 	(2) its population in 2006 is less than 200; and
23.13 	(3) the percentage of its housing stock built before 1940, according to the 2000 
23.14 	United States Census, is greater than 40 percent.
23.15 	(x) The city aid base is increased by $90,000 in calendar year 2009 only and the 
23.16 	minimum and maximum total amount of aid it may receive under section 477A.013, 
23.17 	subdivision 9, is also increased by $90,000 in calendar year 2009 only, provided that the 
23.18 	city is located in the seven-county metropolitan area, has a 2006 population between 5,000 
23.19 	and 7,000 and has a 1997 population of over 7,000.
23.20 	(y) In calendar year 2010 only, the city aid base for a city is increased by $225,000 if 
23.21 	it was eligible for a $450,000 payment in calendar year 2008 under Minnesota Statutes 
23.22 	2006, section 477A.011, subdivision 36, paragraph (e), and the second half of the payment 
23.23 	under that paragraph in December 2008 was canceled due to the governor's unallotment. 
23.24 	The payment under this paragraph is not subject to any aid reductions under section 
23.25 	477A.0134 or any future unallotment of the city aid under section 16A.152.
23.26 	(z) The city aid base and the maximum total aid the city may receive under section 
23.27 	477A.013, subdivision 9, is increased by $25,000 in calendar year 2010 only if:
23.28 	(1) the city is a first class city in the seven-county metropolitan area with a 
23.29 	population below 300,000; and
23.30 	(2) the city has made an equivalent grant to its local growers' association to 
23.31 	reimburse up to $1,000 each for membership fees and retail leases for members of the 
23.32 	association who farm in and around Dakota County and who incurred crop damage as a 
23.33 	result of the hail storm in that area on July 10, 2008.
23.34 	The payment under this paragraph is not subject to any aid reductions under section 
23.35 	477A.0134 or any future unallotment of the city aid under section 16A.152.
24.1 	(aa) The city aid base for a city is increased by $106,964 in 2011 only and the 
24.2 	minimum and maximum amount of total aid it may receive under section 477A.013, 
24.3 	subdivision 9, is also increased by $106,964 in calendar year 2011 only, if the city had a 
24.4 	population as defined in Minnesota Statutes, section 477A.011, subdivision 3, that was in 
24.5 	excess of 1,000 in 2007 and that was less than 1,000 in 2008.
24.6 	(z) In calendar year 2013 only, the total aid the city may receive under section 
24.7 	477A.013 is increased by $12,000 if:
24.8 	(1) the city's 2010 population is less than 100 and its population growth between 
24.9 	2000 and 2010 was more than 55 percent; and
24.10 	(2) its commercial industrial percentage as defined in subdivision 32, based on 
24.11 	assessments for calendar year 2010, payable in 2011, is greater than 15 percent.

24.12 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
24.13 	2013 and thereafter.

24.14 	Sec. 11. Minnesota Statutes 2011 Supplement, section 477A.013, subdivision 9, 
24.15 	is amended to read:
24.16 		Subd. 9.City aid distribution. (a) In calendar year 2009 2013 and thereafter, each 
24.17 	city shall receive an aid distribution equal to the sum of (1) the city formula aid under 
24.18 	subdivision 8, and (2) its city aid base.
24.19 	(b) For aids payable in 2013  and 2014 only, the total aid in the previous year for any 
24.20 	city shall mean the amount of aid it was certified to receive for aids payable in 2012 under 
24.21 	this section. For aids payable in 2014 2015 and thereafter, the total aid in the previous 
24.22 	year for any city means the amount of aid it was certified to receive under this section in 
24.23 	the previous payable year.
24.24 	(c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed 
24.25 	the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution 
24.26 	plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total 
24.27 	aid for any city with a population of 2,500 or more may not be less than its total aid under 
24.28 	this section in the previous year minus the lesser of $10 multiplied by its population, or ten 
24.29 	percent of its net levy in the year prior to the aid distribution.
24.30 	(d) For aids payable in 2010 and thereafter, the total aid for a city with a population 
24.31 	less than 2,500 must not be less than the amount it was certified to receive in the 
24.32 	previous year minus the lesser of $10 multiplied by its population, or five percent of its 
24.33 	2003 certified aid amount. For aids payable in 2009 only, the total aid for a city with a 
24.34 	population less than 2,500 must not be less than what it received under this section in the 
25.1 	previous year unless its total aid in calendar year 2008 was aid under section 477A.011, 
25.2 	subdivision 36, paragraph (s), in which case its minimum aid is zero.
25.3 	(e) A city's aid loss under this section may not exceed $300,000 in any year in 
25.4 	which the total city aid appropriation under section 477A.03, subdivision 2a, is equal or 
25.5 	greater than the appropriation under that subdivision in the previous year, unless the 
25.6 	city has an adjustment in its city net tax capacity under the process described in section 
25.7 	469.174, subdivision 28.
25.8 	(f) If a city's net tax capacity used in calculating aid under this section has decreased 
25.9 	in any year by more than 25 percent from its net tax capacity in the previous year due to 
25.10 	property becoming tax-exempt Indian land, the city's maximum allowed aid increase 
25.11 	under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the 
25.12 	year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease 
25.13 	resulting from the property becoming tax exempt.

25.14 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
25.15 	2013 and thereafter.

25.16 	Sec. 12. Minnesota Statutes 2010, section 477A.013, is amended by adding a 
25.17 	subdivision to read:
25.18 		Subd. 12.Aid payments in 2013. (a) Notwithstanding aids calculated for 2013 
25.19 	under subdivision 9, for 2013, each city with a population of 5,000 or more shall receive 
25.20 	an aid distribution under this section equal to its aid distribution under this section in 2012.
25.21 	(b) Notwithstanding aids calculated for 2013 under subdivision 9, each city with 
25.22 	a population under 5,000 shall receive an aid distribution under this section equal to 
25.23 	any additional city aid base authorized in calendar year 2013 under section 477A.011, 
25.24 	subdivision 36, paragraph (z), plus the greater of (1) its aid distribution under this section 
25.25 	in 2012 or (2) its amount that it is calculated to receive under subdivision 9.

25.26 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
25.27 	2013.

25.28 	Sec. 13. Minnesota Statutes 2010, section 477A.017, subdivision 3, is amended to read:
25.29 		Subd. 3.Conformity. Other law to the contrary notwithstanding, in order to receive 
25.30 	distributions under sections 477A.011 to 477A.03, counties and cities must conform to 
25.31 	the standards set in subdivision 2 in making all financial reports required to be made to 
25.32 	the state auditor after June 30, 1984 by the deadline set by the state auditor. Counties and 
25.33 	cities that fail to submit the required information to the state auditor within 45 days of 
26.1 	the reporting deadline shall forfeit an amount equal to ten percent of the distributions 
26.2 	under sections 477A.011 to 477A.03. Counties and cities that fail to submit the required 
26.3 	information within 60 days of the reporting deadline shall forfeit an amount equal to 30 
26.4 	percent of the distributions. Counties and cities that fail to submit the required information 
26.5 	within 90 days of the reporting deadline shall forfeit an amount equal to 50 percent of the 
26.6 	distributions.

26.7 	EFFECTIVE DATE. This section is effective for financial reports for calendar 
26.8 	year 2012 and thereafter.

26.9 	Sec. 14. 2011 CITY AID PENALTIES.
 26.10 	(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, any city 
26.11 	that did not meet the requirements for filing calendar year 2010 financial reports with 
26.12 	the state auditor imposed under Minnesota Statutes, section 477A.017, subdivision 2, 
26.13 	shall receive its 2011 aid payment as calculated pursuant to Minnesota Statutes, section 
26.14 	477A.013, subdivision 11, provided that the forms are submitted to the state auditor by 
26.15 	May 31, 2012. The commissioner shall make payment to each qualifying city no later 
26.16 	than June 30, 2012.
26.17 	(b) Up to $794,579 of the fiscal year 2012 appropriation for local government aid 
26.18 	in Minnesota Statutes, section 477A.013, subdivision 11, is available for the payment 
26.19 	under this section.

26.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

26.21 	Sec. 15. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243, 
26.22 	article 6, section 9, Laws 2000, chapter 490, article 6, section 15, and Laws 2008, chapter 
26.23 	154, article 2, section 30, is amended to read:
26.24 	Sec. 3. TAX; PAYMENT OF EXPENSES.
 26.25 	(a) The tax levied by the hospital district under Minnesota Statutes, section 447.34, 
26.26 	must not be levied at a rate that exceeds the amount authorized to be levied under that 
26.27 	section. The proceeds of the tax may be used for all purposes of the hospital district, 
26.28 	except as provided in paragraph (b).
26.29 	(b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used 
26.30 	solely by the Cook ambulance service and the Orr ambulance service for the purpose of 
26.31 	capital expenditures as it relates to:
26.32 	(1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance 
26.33 	service and not;
27.1 	(2) attached and portable equipment for use in and for the ambulances; and
27.2 	(3) parts and replacement parts for maintenance and repair of the ambulances.
27.3 	The money may not be used for administrative, operation,  or salary expenses.
27.4 	(c) The part of the levy referred to in paragraph (b) must be administered by the Cook 
27.5 	Hospital and passed on directly to the Cook area ambulance service board and the city of 
27.6 	Orr to be held in trust until funding for a new ambulance is needed by either the Cook 
27.7 	ambulance service or the Orr ambulance service used for the purposes in paragraph (b).

27.8 	Sec. 16. Laws 1999, chapter 243, article 6, section 11, is amended to read:
27.9 	Sec. 11. CEMETERY LEVY FOR SAWYER BY CARLTON COUNTY.
 27.10 		Subdivision 1.Levy authorized. Notwithstanding other law to the contrary, the 
27.11 	Carlton county board of commissioners may annually levy in and for the unorganized 
27.12 	township of Sawyer an amount up to $1,000 annually for cemetery purposes, beginning 
27.13 	with taxes payable in 2000 and ending with taxes payable in 2009.
27.14 		Subd. 2.Effective date. This section is effective June 1, 1999, without local 
27.15 	approval.

27.16 	EFFECTIVE DATE; LOCAL APPROVAL. This section applies to taxes 
27.17 	payable in 2013 and thereafter, and is effective the day after the Carlton county board 
27.18 	of commissioners and its chief clerical officer timely complete their compliance with 
27.19 	Minnesota Statutes, section 645.021, subdivisions 2 and 3.

27.20 	Sec. 17. Laws 2010, chapter 389, article 1, section 12, the effective date, is amended to 
27.21 	read:

27.22 	EFFECTIVE DATE. This section is effective for assessment years year 2010 and 
27.23 	2011, for taxes payable in 2011 and 2012 thereafter.

27.24 	EFFECTIVE DATE. This section is effective for assessment year 2012 and 
27.25 	thereafter.

27.26 	Sec. 18. HOLDING OF PROPERTY FOR ECONOMIC DEVELOPMENT; 
27.27 	TEMPORARY EXTENSION.
 27.28 	(a) For purposes of Minnesota Statutes, section 272.02, subdivision 39, a political 
27.29 	subdivision's holding for resale for economic development of a property that is located in 
27.30 	a city in the metropolitan area, or in a city with a population of more than 5,000 outside 
28.1 	of the metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision 
28.2 	2, for up to ten years, is a public purpose.
28.3 	(b) The authority under this section expires on December 31, 2015.

28.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

28.5 	Sec. 19. ADDITIONAL AID PAYMENT IN 2012 FOR CERTAIN CITIES.
 28.6 	For calendar year 2012 only, a city shall receive a onetime payment of $12,000 
28.7 	if: (1) the city's 2010 population is less than 100 and its population growth between 
28.8 	2000 and 2010 was more than 55 percent; and (2) its commercial industrial percentage as 
28.9 	defined in Minnesota Statutes, section 477A.011, subdivision 32, based on assessments 
28.10 	for calendar year 2010, payable 2011, is greater than 15 percent. The aid paid under this 
28.11 	section shall be paid on the same schedule as aid paid under Minnesota Statutes, sections 
28.12 	477A.011 to 477A.03. The amount necessary to make the payment under this section shall 
28.13 	be appropriated from the general fund in fiscal year 2013.

28.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

28.15 	Sec. 20. SUPPLEMENTAL TARGETING REFUND FOR TAXES PAYABLE IN 
28.16 	2012 ONLY.
 28.17 		Subdivision 1.Determination of supplemental refund. (a) For property tax refund 
28.18 	claims under Minnesota Statutes, section 290A.04, subdivision 2h, based upon property 
28.19 	taxes payable in 2012, the state must pay a supplemental refund such that the combined 
28.20 	amount of the regular refund under Minnesota Statutes, section 290A.04, subdivision 2h, 
28.21 	and the supplemental refund is equal to 90 percent of the increase over the greater of (1) 12 
28.22 	percent of the payable 2011 property taxes, or (2) $100. The maximum combined refund 
28.23 	under Minnesota Statutes, section 290A.04, subdivision 2h, and this section is $1,000.
28.24 	(b) The supplemental refund amount must be determined by the commissioner of 
28.25 	revenue based upon the information submitted with the claim for the regular refund and 
28.26 	must be combined with the regular refund for payment.
28.27 	(c) Any supplemental refund paid under this section must be subtracted from 
28.28 	"property taxes payable" for the purposes of determining any refund amount under 
28.29 	Minnesota Statutes, section 290A.04, subdivision 2, based upon property taxes payable 
28.30 	in 2012.
28.31 	(d) Any supplemental refund paid under this section must be subtracted from 
28.32 	"property taxes payable" for taxes payable in 2012 for the purposes of determining any 
29.1 	refund amount under Minnesota Statutes, section 290A.04, subdivision 2h, based upon 
29.2 	property taxes payable in 2013.
29.3 		Subd. 2.Appropriation. The amount necessary to make the payments required 
29.4 	under this section is appropriated to the commissioner of revenue from the general fund 
29.5 	for fiscal years 2013 and 2014.

29.6 	EFFECTIVE DATE. This section is effective for refund claims based on taxes 
29.7 	payable in 2012 only.

29.8 	ARTICLE 2
29.9 	INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES

29.10 	Section 1. Minnesota Statutes 2011 Supplement, section 116J.8737, subdivision 1, 
29.11 	is amended to read:
29.12 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
29.13 	have the meanings given.
29.14 	(b) "Qualified small business" means a business that has been certified by the 
29.15 	commissioner under subdivision 2.
29.16 	(c) "Qualified investor" means an investor who has been certified by the 
29.17 	commissioner under subdivision 3.
29.18 	(d) "Qualified fund" means a pooled angel investment network fund that has been 
29.19 	certified by the commissioner under subdivision 4.
29.20 	(e) "Qualified investment" means a cash investment in a qualified small business 
29.21 	of a minimum of:
29.22 	(1) $10,000 in a calendar year by a qualified investor; or
29.23 	(2) $30,000 in a calendar year by a qualified fund.
29.24 	A qualified investment must be made in exchange for common stock, a partnership 
29.25 	or membership interest, preferred stock, debt with mandatory conversion to equity, or an 
29.26 	equivalent ownership interest as determined by the commissioner.
29.27 	(f) "Family" means a family member within the meaning of the Internal Revenue 
29.28 	Code, section 267(c)(4).
29.29 	(g) "Pass-through entity" means a corporation that for the applicable taxable year is 
29.30 	treated as an S corporation or a general partnership, limited partnership, limited liability 
29.31 	partnership, trust, or limited liability company and which for the applicable taxable year is 
29.32 	not taxed as a corporation under chapter 290.
29.33 	(h) "Intern" means a student of an accredited institution of higher education, or a 
29.34 	former student who has graduated in the past six months from an accredited institution 
30.1 	of higher education, who is employed by a qualified small business in a nonpermanent 
30.2 	position for a duration of nine months or less that provides training and experience in the 
30.3 	primary business activity of the business.
30.4 	(i) "Liquidation event" means a conversion of qualified investment for cash, cash 
30.5 	and other consideration, or any other form of equity or debt interest.

30.6 	EFFECTIVE DATE. This section is effective for qualified small businesses 
30.7 	certified after June 30, 2012.

30.8 	Sec. 2. Minnesota Statutes 2011 Supplement, section 116J.8737, subdivision 2, is 
30.9 	amended to read:
30.10 		Subd. 2.Certification of qualified small businesses. (a) Businesses may apply 
30.11 	to the commissioner for certification as a qualified small business for a calendar year. 
30.12 	The application must be in the form and be made under the procedures specified by the 
30.13 	commissioner, accompanied by an application fee of $150. Application fees are deposited 
30.14 	in the small business investment tax credit administration account in the special revenue 
30.15 	fund. The application for certification for 2010 must be made available on the department's 
30.16 	Web site by August 1, 2010. Applications for subsequent years' certification must be made 
30.17 	available on the department's Web site by November 1 of the preceding year.
30.18 	(b) Within 30 days of receiving an application for certification under this subdivision, 
30.19 	the commissioner must either certify the business as satisfying the conditions required of a 
30.20 	qualified small business, request additional information from the business, or reject the 
30.21 	application for certification. If the commissioner requests additional information from the 
30.22 	business, the commissioner must either certify the business or reject the application within 
30.23 	30 days of receiving the additional information. If the commissioner neither certifies the 
30.24 	business nor rejects the application within 30 days of receiving the original application or 
30.25 	within 30 days of receiving the additional information requested, whichever is later, then 
30.26 	the application is deemed rejected, and the commissioner must refund the $150 application 
30.27 	fee. A business that applies for certification and is rejected may reapply.
30.28 	(c) To receive certification, a business must satisfy all of the following conditions:
30.29 	(1) the business has its headquarters in Minnesota;
30.30 	(2) at least 51 percent of the business's employees are employed in Minnesota, and 
30.31 	51 percent of the business's total payroll is paid or incurred in the state;
30.32 	(3) the business is engaged in, or is committed to engage in, innovation in Minnesota 
30.33 	in one of the following as its primary business activity:
30.34 	(i) using proprietary technology to add value to a product, process, or service in a 
30.35 	qualified high-technology field;
31.1 	(ii) researching or developing a proprietary product, process, or service in a qualified 
31.2 	high-technology field; or
31.3 	(iii) researching, developing, or producing a new proprietary technology for use in 
31.4 	the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;
31.5 	(4) other than the activities specifically listed in clause (3), the business is not 
31.6 	engaged in real estate development, insurance, banking, lending, lobbying, political 
31.7 	consulting, information technology consulting, wholesale or retail trade, leisure, 
31.8 	hospitality, transportation, construction, ethanol production from corn, or professional 
31.9 	services provided by attorneys, accountants, business consultants, physicians, or health 
31.10 	care consultants;
31.11 	(5) the business has fewer than 25 employees;
31.12 	(6) the business must pay its employees annual wages of at least 175 percent of the 
31.13 	federal poverty guideline for the year for a family of four and must pay its interns annual 
31.14 	wages of at least 175 percent of the federal minimum wage used for federally covered 
31.15 	employers, except that this requirement must be reduced proportionately for employees 
31.16 	and interns who work less than full-time, and does not apply to an executive, officer, or 
31.17 	member of the board of the business, or to any employee who owns, controls, or holds 
31.18 	power to vote more than 20 percent of the outstanding securities of the business;
31.19 	(7) the business has not been in operation for more than ten years, except as provided 
31.20 	in clause (8);
31.21 	(8) the business has not been in operation for more than 20 years if the business is 
31.22 	engaged in the research, development, or production of medical devices or pharmaceuticals 
31.23 	for which U.S. Food and Drug Administration approval is required for use in the treatment 
31.24 	or diagnosis of a disease or condition;
31.25 	(8) (9) the business has not previously received private equity investments of more 
31.26 	than $4,000,000; and
31.27 	(9) (10) the business is not an entity disqualified under section 80A.50, paragraph 
31.28 	(b), clause (3); and
31.29 	(11) the business has not issued securities that are traded on a public exchange.
31.30 	(d) In applying the limit under paragraph (c), clause (5), the employees in all 
31.31 	members of the unitary business, as defined in section 290.17, subdivision 4, must be 
31.32 	included.
31.33 	(e) In order for a qualified investment in a business to be eligible for tax credits,:
31.34 	(1) the business must have applied for and received certification for the calendar 
31.35 	year in which the investment was made prior to the date on which the qualified investment 
31.36 	was made.;
32.1 	(2) the business must not have issued securities that are traded on a public exchange;
32.2 	(3) the business must not issue securities that are traded on a public exchange within 
32.3 	180 days subsequent to the date on which the qualified investment was made; and
32.4 	(4) the business must not have a liquidation event within 180 days subsequent to the 
32.5 	date on which the qualified investment was made.
32.6 	(f) The commissioner must maintain a list of businesses certified under this 
32.7 	subdivision for the calendar year and make the list accessible to the public on the 
32.8 	department's Web site.
32.9 	(g) For purposes of this subdivision, the following terms have the meanings given:
32.10 	(1) "qualified high-technology field" includes aerospace, agricultural processing, 
32.11 	renewable energy, energy efficiency and conservation, environmental engineering, food 
32.12 	technology, cellulosic ethanol, information technology, materials science technology, 
32.13 	nanotechnology, telecommunications, biotechnology, medical device products, 
32.14 	pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar 
32.15 	fields; and
32.16 	(2) "proprietary technology" means the technical innovations that are unique and 
32.17 	legally owned or licensed by a business and includes, without limitation, those innovations 
32.18 	that are patented, patent pending, a subject of trade secrets, or copyrighted.

32.19 	EFFECTIVE DATE. This section is effective for qualified small businesses 
32.20 	certified after June 30, 2012, except the amendments to paragraph (c), clause (7), and 
32.21 	paragraph (c), adding clause (8), are effective the day following final enactment.

32.22 	Sec. 3. Minnesota Statutes 2010, section 116J.8737, subdivision 5, is amended to read:
32.23 		Subd. 5.Credit allowed. (a) A qualified investor or qualified fund is eligible for 
32.24 	a credit equal to 25 percent of the qualified investment in a qualified small business. 
32.25 	Investments made by a pass-through entity qualify for a credit only if the entity is a 
32.26 	qualified fund. The commissioner must not allocate more than $11,000,000 in credits to 
32.27 	qualified investors or qualified funds for taxable years beginning after December 31, 
32.28 	2009, and before January 1, 2011, and must not allocate more than $12,000,000 in credits 
32.29 	per year for taxable years beginning after December 31, 2010, and before January 1, 
32.30 	2015 2012, must not allocate more than $16,500,000 in credits per year for taxable years 
32.31 	beginning after December 31, 2011, and before January 1, 2013, and must not allocate 
32.32 	more than $17,000,000 in credits per year for taxable years beginning after December 31, 
32.33 	2012, and before January 1, 2015. Any portion of a taxable year's credits that is not 
32.34 	allocated by the commissioner does not cancel and may be carried forward to subsequent 
32.35 	taxable years until all credits have been allocated.
33.1 	(b) The commissioner may not allocate more than a total maximum amount in credits 
33.2 	for a taxable year to a qualified investor for the investor's cumulative qualified investments 
33.3 	as an individual qualified investor and as an investor in a qualified fund; for married 
33.4 	couples filing joint returns the maximum is $250,000, and for all other filers the maximum 
33.5 	is $125,000. The commissioner may not allocate more than a total of $1,000,000 in credits 
33.6 	over all taxable years for qualified investments in any one qualified small business.
33.7 	(c) The commissioner may not allocate a credit to a qualified investor either as an 
33.8 	individual qualified investor or as an investor in a qualified fund if the investor receives 
33.9 	more than 50 percent of the investor's gross annual income from the qualified small 
33.10 	business in which the qualified investment is proposed. A member of the family of an 
33.11 	individual disqualified by this paragraph is not eligible for a credit under this section. For 
33.12 	a married couple filing a joint return, the limitations in this paragraph apply collectively 
33.13 	to the investor and spouse. For purposes of determining the ownership interest of an 
33.14 	investor under this paragraph, the rules under section 267(c) and 267(e) of the Internal 
33.15 	Revenue Code apply.
33.16 	(d) Applications for tax credits for 2010 must be made available on the department's 
33.17 	Web site by September 1, 2010, and the department must begin accepting applications 
33.18 	by September 1, 2010. Applications for subsequent years must be made available by 
33.19 	November 1 of the preceding year.
33.20 	(e) Qualified investors and qualified funds must apply to the commissioner for tax 
33.21 	credits. Tax credits must be allocated to qualified investors or qualified funds in the order 
33.22 	that the tax credit request applications are filed with the department. The commissioner 
33.23 	must approve or reject tax credit request applications within 15 days of receiving the 
33.24 	application. The investment specified in the application must be made within 60 days of 
33.25 	the allocation of the credits. If the investment is not made within 60 days, the credit 
33.26 	allocation is canceled and available for reallocation. A qualified investor or qualified fund 
33.27 	that fails to invest as specified in the application, within 60 days of allocation of the 
33.28 	credits, must notify the commissioner of the failure to invest within five business days of 
33.29 	the expiration of the 60-day investment period.
33.30 	(f) All tax credit request applications filed with the department on the same day must 
33.31 	be treated as having been filed contemporaneously. If two or more qualified investors or 
33.32 	qualified funds file tax credit request applications on the same day, and the aggregate 
33.33 	amount of credit allocation claims exceeds the aggregate limit of credits under this section 
33.34 	or the lesser amount of credits that remain unallocated on that day, then the credits must 
33.35 	be allocated among the qualified investors or qualified funds who filed on that day on a 
33.36 	pro rata basis with respect to the amounts claimed. The pro rata allocation for any one 
34.1 	qualified investor or qualified fund is the product obtained by multiplying a fraction, 
34.2 	the numerator of which is the amount of the credit allocation claim filed on behalf of 
34.3 	a qualified investor and the denominator of which is the total of all credit allocation 
34.4 	claims filed on behalf of all applicants on that day, by the amount of credits that remain 
34.5 	unallocated on that day for the taxable year.
34.6 	(g) A qualified investor or qualified fund, or a qualified small business acting on their 
34.7 	behalf, must notify the commissioner when an investment for which credits were allocated 
34.8 	has been made, and the taxable year in which the investment was made. A qualified fund 
34.9 	must also provide the commissioner with a statement indicating the amount invested by 
34.10 	each investor in the qualified fund based on each investor's share of the assets of the 
34.11 	qualified fund at the time of the qualified investment. After receiving notification that the 
34.12 	investment was made, the commissioner must issue credit certificates for the taxable year 
34.13 	in which the investment was made to the qualified investor or, for an investment made by 
34.14 	a qualified fund, to each qualified investor who is an investor in the fund. The certificate 
34.15 	must state that the credit is subject to revocation if the qualified investor or qualified 
34.16 	fund does not hold the investment in the qualified small business for at least three years, 
34.17 	consisting of the calendar year in which the investment was made and the two following 
34.18 	years. The three-year holding period does not apply if:
34.19 	(1) the investment by the qualified investor or qualified fund becomes worthless 
34.20 	before the end of the three-year period;
34.21 	(2) 80 percent or more of the assets of the qualified small business is sold before 
34.22 	the end of the three-year period;
34.23 	(3) the qualified small business is sold before the end of the three-year period; or
34.24 	(4) the qualified small business's common stock begins trading on a public exchange 
34.25 	before the end of the three-year period.
34.26 	(h) The commissioner must notify the commissioner of revenue of credit certificates 
34.27 	issued under this section.

34.28 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
34.29 	December 31, 2011.

34.30 	Sec. 4. Minnesota Statutes 2010, section 116J.8737, is amended by adding a 
34.31 	subdivision to read:
34.32 		Subd. 5a.Promotion of credit in greater Minnesota. (a) By July 1, 2012, the 
34.33 	commissioner shall develop a plan to increase awareness of and use of the credit for 
34.34 	investments in greater Minnesota businesses with a target goal that a minimum of 30 
34.35 	percent of the credit will be awarded for those investments during the second half 
35.1 	of calendar year 2013 and for each full calendar year thereafter. Beginning with the 
35.2 	legislative report due on March 15, 2013, under subdivision 9, the commissioner shall 
35.3 	report on its plan under this subdivision and the results achieved.
35.4 	(b) If the target goal of 30 percent under paragraph (a) is not achieved for the 
35.5 	six-month period ending on December 31, 2013, the credit percentage under subdivision 
35.6 	5, paragraph (a), is increased to 40 percent for a qualified investment made after December 
35.7 	31, 2013, in a greater Minnesota business. This paragraph does not apply and the credit 
35.8 	percentage for all qualified investments is the rate provided under subdivision 5 for any 
35.9 	calendar year beginning after a calendar year for which the commissioner determines the 
35.10 	30 percent target has been satisfied. The commissioner shall timely post notification of 
35.11 	changes in the credit rate under this paragraph on the department's website.
35.12 	(c) For purposes of this section, a "greater Minnesota business" means a qualified 
35.13 	small business with its headquarters and 51 percent or more of its employees employed 
35.14 	at Minnesota locations outside of the metropolitan area as defined in section 473.121, 
35.15 	subdivision 2.

35.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

35.17 	Sec. 5. Minnesota Statutes 2010, section 116J.8737, subdivision 8, is amended to read:
35.18 		Subd. 8.Data privacy. (a) Data contained in an application submitted to the 
35.19 	commissioner under subdivision 2, 3, or 4 are nonpublic data, or private data on 
35.20 	individuals, as defined in section 13.02, subdivision 9 or 12, except that the following 
35.21 	data items are public:
35.22 	(1) the name, mailing address, telephone number, e-mail address, contact person's 
35.23 	name, and industry type of a qualified small business upon approval of the application 
35.24 	and certification by the commissioner under subdivision 2;
35.25 	(2) the name of a qualified investor upon approval of the application and certification 
35.26 	by the commissioner under subdivision 3;
35.27 	(3) the name of a qualified fund upon approval of the application and certification 
35.28 	by the commissioner under subdivision 4;
35.29 	(4) for credit certificates issued under subdivision 5, the amount of the credit 
35.30 	certificate issued, amount of the qualifying investment, the name of the qualifying investor 
35.31 	or qualifying fund that received the certificate, and the name of the qualifying small 
35.32 	business in which the qualifying investment was made;
35.33 	(5) for credits revoked under subdivision 7, paragraph (a), the amount revoked and 
35.34 	the name of the qualified investor or qualified fund; and
36.1 	(6) for credits revoked under subdivision 7, paragraphs (b) and (c), the amount 
36.2 	revoked and the name of the qualified small business.
36.3 	(b) The following data, including data classified as nonpublic or private, must be 
36.4 	provided to the consultant for use in conducting the program evaluation under subdivision 
36.5 	10:
36.6 	(1) the commissioner of employment and economic development shall provide data 
36.7 	contained in an application for certification received from a qualified small business, 
36.8 	qualified investor, or qualified fund, and any annual reporting information received on a 
36.9 	qualified small business, qualified investor, or qualified fund; and
36.10 	(2) the commissioner of revenue shall provide data contained in any applicable tax 
36.11 	returns of a qualified small business, qualified investor, or qualified fund.

36.12 	EFFECTIVE DATE. This section is effective for businesses requesting certification 
36.13 	starting on the day following final enactment.

36.14 	Sec. 6. Minnesota Statutes 2011 Supplement, section 289A.02, subdivision 7, is 
36.15 	amended to read:
36.16 		Subd. 7.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
36.17 	Revenue Code" means the Internal Revenue Code of 1986, as amended through April 14, 
36.18 	2011 February 14, 2012.

36.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

36.20 	Sec. 7. Minnesota Statutes 2010, section 289A.31, subdivision 5, is amended to read:
36.21 		Subd. 5.Withholding tax, withholding from payments to out-of-state 
36.22 	contractors, and withholding by partnerships and small business corporations. (a) 
36.23 	Except as provided in paragraph (b), an employer or person withholding tax under section 
36.24 	290.92 or 290.923, subdivision 2, who fails to pay to or deposit with the commissioner a 
36.25 	sum or sums required by those sections to be deducted, withheld, and paid, is personally 
36.26 	and individually liable to the state for the sum or sums, and added penalties and interest, 
36.27 	and is not liable to another person for that payment or payments. The sum or sums 
36.28 	deducted and withheld under section 290.92, subdivision 2a or 3, or 290.923, subdivision 
36.29 	2, must be held as a special fund in trust for the state of Minnesota.
36.30 	(b) If the employer or person withholding tax under section 290.92 or 290.923, 
36.31 	subdivision 2, fails to deduct and withhold the tax in violation of those sections, and later 
36.32 	the taxes against which the tax may be credited are paid, the tax required to be deducted 
36.33 	and withheld will not be collected from the employer. This does not, however, relieve the 
37.1 	employer from liability for any penalties and interest otherwise applicable for failure to 
37.2 	deduct and withhold. This paragraph does not apply to an employer subject to paragraph 
37.3 	(g), or to a contractor required to withhold under section 290.92, subdivision 31.
37.4 	(c) Liability for payment of withholding taxes includes a responsible person or entity 
37.5 	described in the personal liability provisions of section 270C.56.
37.6 	(d) Liability for payment of withholding taxes includes a third-party lender or surety 
37.7 	described in section 270C.59.
37.8 	(e) A partnership or S corporation required to withhold and remit tax under section 
37.9 	290.92, subdivisions 4b and 4c, is liable for payment of the tax to the commissioner, and a 
37.10 	person having control of or responsibility for the withholding of the tax or the filing of 
37.11 	returns due in connection with the tax is personally liable for the tax due.
37.12 	(f) A payor of sums required to be withheld under section 290.9705, subdivision 
37.13 	1, is liable to the state for the amount required to be deducted, and is not liable to an 
37.14 	out-of-state contractor for the amount of the payment.
37.15 	(g) If an employer fails to withhold tax from the wages of an employee when 
37.16 	required to do so under section 290.92, subdivision 2a, by reason of treating such 
37.17 	employee as not being an employee, then the liability for tax is equal to three percent of 
37.18 	the wages paid to the employee. The liability for tax of an employee is not affected by 
37.19 	the assessment or collection of tax under this paragraph. The employer is not entitled to 
37.20 	recover from the employee any tax determined under this paragraph.

37.21 	EFFECTIVE DATE. This section is effective for payments made after June 30, 
37.22 	2012.

37.23 	Sec. 8. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19, is 
37.24 	amended to read:
37.25 		Subd. 19.Net income. The term "net income" means the federal taxable income, 
37.26 	as defined in section 63 of the Internal Revenue Code of 1986, as amended through the 
37.27 	date named in this subdivision, incorporating the federal effective dates of changes to the 
37.28 	Internal Revenue Code and any elections made by the taxpayer in accordance with the 
37.29 	Internal Revenue Code in determining federal taxable income for federal income tax 
37.30 	purposes, and with the modifications provided in subdivisions 19a to 19f.
37.31 	In the case of a regulated investment company or a fund thereof, as defined in section 
37.32 	851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 
37.33 	company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 
37.34 	except that:
38.1 	(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 
38.2 	Revenue Code does not apply;
38.3 	(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal 
38.4 	Revenue Code must be applied by allowing a deduction for capital gain dividends and 
38.5 	exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal 
38.6 	Revenue Code; and
38.7 	(3) the deduction for dividends paid must also be applied in the amount of any 
38.8 	undistributed capital gains which the regulated investment company elects to have treated 
38.9 	as provided in section 852(b)(3)(D) of the Internal Revenue Code.
38.10 	The net income of a real estate investment trust as defined and limited by section 
38.11 	856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust 
38.12 	taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
38.13 	The net income of a designated settlement fund as defined in section 468B(d) of 
38.14 	the Internal Revenue Code means the gross income as defined in section 468B(b) of the 
38.15 	Internal Revenue Code.
38.16 	The Internal Revenue Code of 1986, as amended through April 14, 2011 February 
38.17 	14, 2012, shall be in effect for taxable years beginning after December 31, 1996. The 
38.18 	provisions of the act of January 22, 2010, Public Law 111-126, to accelerate the benefits 
38.19 	for charitable cash contributions for the relief of victims of the Haitian earthquake, are 
38.20 	effective at the same time they became effective for federal purposes and apply to the 
38.21 	subtraction under subdivision 19b, clause (6). The provisions of title II, section 2112, of 
38.22 	the act of September 27, 2010, Public Law 111-240, rollovers from elective deferral plans 
38.23 	to designated Roth accounts, are effective at the same time they became effective for 
38.24 	federal purposes and taxable rollovers are included in net income at the same time they are 
38.25 	included in gross income for federal purposes.
38.26 	Except as otherwise provided, references to the Internal Revenue Code in 
38.27 	subdivisions 19 to 19f mean the code in effect for purposes of determining net income for 
38.28 	the applicable year.

38.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

38.30 	Sec. 9. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 31, is 
38.31 	amended to read:
38.32 		Subd. 31.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
38.33 	Revenue Code" means the Internal Revenue Code of 1986, as amended through April 14, 
38.34 	2011 February 14, 2012. Internal Revenue Code also includes any uncodified provision in 
38.35 	federal law that relates to provisions of the Internal Revenue Code that are incorporated 
39.1 	into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1, 
39.2 	subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as 
39.3 	amended through March 18, 2010.

39.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

39.5 	Sec. 10. Minnesota Statutes 2010, section 290.068, subdivision 1, is amended to read:
39.6 		Subdivision 1.Credit allowed. A corporation, partners in a partnership, or 
39.7 	shareholders in a corporation treated as an "S" corporation under section 290.9725 are 
39.8 	allowed a credit against the tax computed under this chapter for the taxable year equal to:
39.9 	(a) ten percent of the first $2,000,000 of the excess (if any) of
39.10 	(1) the qualified research expenses for the taxable year, over
39.11 	(2) the base amount; and
39.12 	(b) 2.5 3.1 percent on all of such excess expenses over $2,000,000 for taxable years 
39.13 	beginning after December 31, 2011.

39.14 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
39.15 	December 31, 2011.

39.16 	Sec. 11. Minnesota Statutes 2010, section 290.0681, subdivision 1, is amended to read:
39.17 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
39.18 	have the meanings given.
39.19 	(b) "Account" means the historic credit administration account in the special 
39.20 	revenue fund.
39.21 	(c) "Office" means the State Historic Preservation Office of the Minnesota Historical 
39.22 	Society.
39.23 	(d) "Project" means rehabilitation of a certified historic structure, as defined in 
39.24 	section 47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is 
39.25 	allowed a federal credit under section 47(a)(2) of the Internal Revenue Code.
39.26 	(e) "Society" means the Minnesota Historical Society.
39.27 	(f) "Federal credit" means the credit allowed under section 47(a)(2) of the Internal 
39.28 	Revenue Code.
39.29 	(g) "Placed in service" has the meaning used in section 47 of the Internal Revenue 
39.30 	Code.
39.31 	(h) "Qualified rehabilitation expenditures" has the meaning given in section 47 of 
39.32 	the Internal Revenue Code.

39.33 	EFFECTIVE DATE. This section is effective the day following final enactment.

40.1 	Sec. 12. Minnesota Statutes 2010, section 290.0681, subdivision 3, is amended to read:
40.2 		Subd. 3.Applications; allocations. (a) To qualify for a credit or grant under this 
40.3 	section, the developer of a project must apply to the office before the rehabilitation begins. 
40.4 	The application must contain the information and be in the form prescribed by the office. 
40.5 	The office may collect a fee for application of up to $5,000, based on estimated qualified 
40.6 	rehabilitation expenses expenditures, to offset costs associated with personnel and 
40.7 	administrative expenses related to administering the credit and preparing the economic 
40.8 	impact report in subdivision 9. Application fees are deposited in the account. The 
40.9 	application must indicate if the application is for a credit or a grant in lieu of the credit 
40.10 	or a combination of the two and designate the taxpayer qualifying for the credit or the 
40.11 	recipient of the grant.
40.12 	(b) Upon approving an application for credit, the office shall issue allocation 
40.13 	certificates that:
40.14 	(1) verify eligibility for the credit or grant;
40.15 	(2) state the amount of credit or grant anticipated with the project, with the credit 
40.16 	amount equal to 100 percent and the grant amount equal to 90 percent of the federal 
40.17 	credit anticipated in the application;
40.18 	(3) state that the credit or grant allowed may increase or decrease if the federal 
40.19 	credit the project receives at the time it is placed in service is different than the amount 
40.20 	anticipated at the time the allocation certificate is issued; and
40.21 	(4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer 
40.22 	or grant recipient is entitled to receive the credit or grant at the time the project is placed 
40.23 	in service, provided that date is within three calendar years following the issuance of 
40.24 	the allocation certificate.
40.25 	(c) The office, in consultation with the commissioner of revenue, shall determine 
40.26 	if the project is eligible for a credit or a grant under this section and must notify the 
40.27 	developer in writing of its determination. Eligibility for the credit is subject to review 
40.28 	and audit by the commissioner of revenue.
40.29 	(d) The federal credit recapture and repayment requirements under section 50 of the 
40.30 	Internal Revenue Code do not apply to the credit allowed under this section.
40.31 	(e) Any decision of the office under paragraph (c) of this subdivision may be 
40.32 	challenged as a contested case under chapter 14. The contested case proceeding must be 
40.33 	initiated within 45 days of the date of written notification by the office.

40.34 	EFFECTIVE DATE. This section is effective the day following final enactment.

40.35 	Sec. 13. Minnesota Statutes 2010, section 290.0681, subdivision 4, is amended to read:
41.1 		Subd. 4.Credit certificates; grants. (a)(1) The developer of a project for which the 
41.2 	office has issued an allocation certificate must notify the office when the project is placed 
41.3 	in service. Upon verifying that the project has been placed in service, and was allowed a 
41.4 	federal credit, the office must issue a credit certificate to the taxpayer designated in the 
41.5 	application or must issue a grant to the recipient designated in the application. The credit 
41.6 	certificate must state the amount of the credit.
41.7 	(2) The credit amount equals the federal credit allowed for the project.
41.8 	(3) The grant amount equals 90 percent of the federal credit allowed for the project.
41.9 	(b) The recipient of a credit certificate may assign the certificate to another taxpayer, 
41.10 	which is then allowed the credit under this section or section 297I.20, subdivision 3.  An 
41.11 	assignment is not valid unless the assignee notifies the commissioner within 30 days of the 
41.12 	date that the assignment is made. The commissioner shall prescribe the forms necessary 
41.13 	for notifying the commissioner of the assignment of a credit certificate and for claiming 
41.14 	a credit by assignment.
41.15 	(c) Credits passed through pursuant to subdivision 5 of this section are not an 
41.16 	assignment of a credit certificate under this subdivision.
41.17 	(d) A grant agreement between the office and the recipient of a grant may allow the 
41.18 	grant to be issued to another individual or entity.

41.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

41.20 	Sec. 14. Minnesota Statutes 2010, section 290.0681, subdivision 5, is amended to read:
41.21 		Subd. 5.Partnerships; multiple owners. Credits granted to a partnership, a limited 
41.22 	liability company taxed as a partnership, S corporation, or multiple owners of property 
41.23 	are passed through to the partners, members, shareholders, or owners, respectively, pro 
41.24 	rata to each partner, member, shareholder, or owner based on their share of the entity's 
41.25 	assets or as specially allocated in their organizational documents or any other executed 
41.26 	agreement, as of the last day of the taxable year.

41.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

41.28 	Sec. 15. Minnesota Statutes 2010, section 290.0681, subdivision 10, is amended to 
41.29 	read:
41.30 		Subd. 10.Sunset. This section expires after fiscal year 2015 2021, except that 
41.31 	the office's authority to issue credit certificates under subdivision 4 based on allocation 
41.32 	certificates that were issued before fiscal year 2016 2022 remains in effect through 2018
41.33 	2024, and the reporting requirements in subdivision 9 remain in effect through the year 
42.1 	following the year in which all allocation certificates have either been canceled or resulted 
42.2 	in issuance of credit certificates, or 2019 2025, whichever is earlier.

42.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

42.4 	Sec. 16. [290.0693] VETERANS JOBS TAX CREDIT.
42.5 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
42.6 	have the meanings given.
42.7 	(b)(1) "Full-time employee" means an employee as defined in section 290.92, 
42.8 	subdivision 1, who meets the following criteria:
42.9 	(i) the employee is paid wages as defined in section 290.92, subdivision 1, for at 
42.10 	least 1,820 hours during the 12-month period that starts on the date of hire;
42.11 	(ii) the employee's wages are attributable to Minnesota under section 290.191, 
42.12 	subdivision 12;
42.13 	(iii) the employee performs services for the employer in at least 50 weeks during the 
42.14 	12-month period that starts on the date of hire; and 
42.15 	(iv) the employee's total compensation, including benefits not mandated by law, is at 
42.16 	least $25,000 for the 12-month period that starts on the date of hire.
42.17 	(2) "Full-time employee" does not include:
42.18 	(i) any employee who bears any of the relationships described in subparagraphs (A) 
42.19 	to (G) of section 152(d)(2) of the Internal Revenue Code to the employer;
42.20 	(ii) if the employer is a corporation, any employee who owns, directly or indirectly, 
42.21 	more than 50 percent in value of the outstanding stock of the corporation, or if the 
42.22 	employer is an entity other than a corporation, an employee who owns, directly or 
42.23 	indirectly, more than 50 percent of the capital and profits interests in the entity, as 
42.24 	determined with the application of section 267(c) of the Internal Revenue Code; or
42.25 	(iii) if the employer is an estate or trust, any employee who is a fiduciary of the estate 
42.26 	or trust, or is an individual who bears any of the relationships described in subparagraphs 
42.27 	(A) to (G) of section 152(d)(2) of the Internal Revenue Code to a grantor, beneficiary, 
42.28 	or fiduciary of the estate or trust.
42.29 	(c) "Qualified employer" means an employer that:
42.30 	(1) employed a total of five or more full-time employees on December 31, 2011; and
42.31 	(2) hired one or more qualified full-time employees after March 31, 2012.
42.32 	(d) "Qualified full-time employee" means a full-time employee who:
42.33 	(1) has completed 12 consecutive months of service as a full-time employee for a 
42.34 	qualified employer;
42.35 	(2) is a qualified unemployed veteran; and
43.1 	(3) is a resident of Minnesota on the date of hire.
43.2 	(e) "Qualified unemployed veteran" is a person who:
43.3 	(1) was in active military service in a designated area after September 11, 2001, 
43.4 	as defined in section 290.0677;
43.5 	(2) was separated from active military service at any time during the five-year period 
43.6 	prior to the date of hire;
43.7 	(3) received unemployment compensation under state or federal law for not less than 
43.8 	four weeks during the one-year period prior to the date of hire; and
43.9 	(4) was unemployed on the date of hire.
43.10 	(f) "Date of hire" means the day that the qualified full-time employee begins 
43.11 	performing services as an employee for the qualified employer.
43.12 	(g) "Construction trades employer" means a person carrying on a trade or business 
43.13 	described in industry code numbers 23 through 238990 of the North American Industry 
43.14 	Classification System.
43.15 		Subd. 2.Credit for new full-time employees. (a) A qualified employer who is 
43.16 	required to file a return under section 289A.08, subdivision 1, 2, or 3, is allowed a credit 
43.17 	against the tax imposed by this chapter for the net increase in qualified full-time employees.
43.18 	(b)(1) For hiring qualified full-time employees after March 30, 2012, but before 
43.19 	January 1, 2013, the credit is equal to $3,000 times the net increase in full-time employees. 
43.20 	The net increase in full-time employees is the difference between:
43.21 	(i) the total number of full-time employees employed by the employer on December 
43.22 	31, 2011; and
43.23 	(ii) the number of full-time employees employed by the employer on December 
43.24 	31, 2012.
43.25 	The net increase in full-time employees cannot exceed the number of qualified full-time 
43.26 	employees hired after March 31, 2012, but before January 1, 2013.
43.27 	(2) For hiring qualified full-time employees after December 31, 2012, but before 
43.28 	July 1, 2013, the credit is equal to $1,500 times the net increase in full-time employees. 
43.29 	The net increase in full-time employees is the difference between:
43.30 	(i) the total number of full-time employees employed by the taxpayer on December 
43.31 	31, 2011; and
43.32 	(ii) the number of full-time employees employed by the taxpayer on December 
43.33 	31, 2013.
43.34 	The net increase in full-time employees cannot exceed the number of qualified full-time 
43.35 	employees hired after December 31, 2012, but before July 1, 2013.
44.1 	(c) The credit may be claimed in the taxable year in which the qualified full-time 
44.2 	employee completes 12 consecutive months of continuous service as a full-time employee 
44.3 	of the qualified employer.
44.4 	(d) The maximum aggregate credits allowed to a qualified employer under this 
44.5 	section for all taxable years is $50,000.
44.6 	(e) For members of a unitary business whose income and factors are included on a 
44.7 	combined income report under section 289A.08, subdivision 3, the number of full-time 
44.8 	employees and the maximum allowable credit are not determined at the individual 
44.9 	member level but are instead determined at the group level.
44.10 		Subd. 3.Allocation of credits. (a) By July 1, 2012, the commissioner shall develop 
44.11 	an Internet application that allows employers to apply for tentative credits. The application 
44.12 	must include the employer's name, tax identification number, and North American Industry 
44.13 	Classification System industry code, and the name and date of hire of the employee.
44.14 	(b) The credit is available only to employers who apply for a tentative credit using 
44.15 	the application in paragraph (a) and who receive notice that their application has been 
44.16 	approved for a tentative credit.
44.17 	(c) Employers may apply for a tentative credit no earlier than the date of hire of 
44.18 	each qualified full-time employee. Any employer may file more than one tentative credit 
44.19 	application, but no employer may apply for tentative credits for more than a total of 16 
44.20 	employees hired in 2012 or 33 employees hired in 2013.
44.21 	(d) The commissioner shall approve applications seeking tentative credits for the 
44.22 	first 2,500 full-time employees based on the order in which the applications are received.
44.23 	(e) The commissioner must promptly notify employers if they are eligible for a 
44.24 	tentative credit. The notice must state that the employer is eligible for a credit only after 
44.25 	the employee named in the application has worked for 12 consecutive months and all other 
44.26 	conditions of eligibility are met.
44.27 	(f) The commissioner shall promptly publish public notice when all 2,500 tentative 
44.28 	credits have been applied for.
44.29 		Subd. 4.Tentative credits for construction trades employers. (a) Any 
44.30 	construction trades employer may apply for a tentative credit.
44.31 	(b) To remain eligible for a credit, a construction trades employer who has received 
44.32 	a tentative credit must renew the tentative credit by filing an application with the 
44.33 	commissioner no earlier than 180 days after date of hire and no more than 210 days after 
44.34 	date of hire. The renewal notice must state that the employee for whom the tentative credit 
44.35 	was originally granted is still an employee and that the employer reasonably believes that 
44.36 	all qualifications of eligibility for a credit will be met.
45.1 	(c) Any tentative credit issued to a construction trades employer that is not renewed 
45.2 	within the time required for renewal is canceled. Any canceled tentative credits are 
45.3 	available to be reissued by the commissioner to employers under subdivision 3.
45.4 		Subd. 5.Flow-through entities. Credits granted to a partnership, limited liability 
45.5 	company taxed as a partnership, S corporation, or multiple owners of a business are passed 
45.6 	through to the partners, members, shareholders, or owners, respectively, pro rata to each 
45.7 	partner, member, shareholder, or owner based on their share of the entity's assets or as 
45.8 	specially allocated in their organizational documents, as of the last day of the taxable year.
45.9 		Subd. 6.Refundable. If the amount of the credit allowed under this section exceeds 
45.10 	the liability for tax under this chapter, the commissioner shall refund the excess to the 
45.11 	taxpayer.
45.12 		Subd. 7.Appropriation. An amount sufficient to pay the refunds authorized by this 
45.13 	section is appropriated to the commissioner from the general fund.

45.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

45.15 	Sec. 17. Minnesota Statutes 2011 Supplement, section 290A.03, subdivision 15, 
45.16 	is amended to read:
45.17 		Subd. 15.Internal Revenue Code.  "Internal Revenue Code" means the Internal 
45.18 	Revenue Code of 1986, as amended through April 14, 2011 February 14, 2012.

45.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

45.20 	Sec. 18. Minnesota Statutes 2011 Supplement, section 291.005, subdivision 1, is 
45.21 	amended to read:
45.22 		Subdivision 1.Scope. Unless the context otherwise clearly requires, the following 
45.23 	terms used in this chapter shall have the following meanings:
45.24 	(1) "Commissioner" means the commissioner of revenue or any person to whom the 
45.25 	commissioner has delegated functions under this chapter.
45.26 	(2) "Federal gross estate" means the gross estate of a decedent as required to be 
45.27 	valued and otherwise determined for federal estate tax purposes under the Internal 
45.28 	Revenue Code.
45.29 	(3) "Internal Revenue Code" means the United States Internal Revenue Code of 
45.30 	1986, as amended through April 14, 2011 February 14, 2012, but without regard to the 
45.31 	provisions of sections 501 and 901 of Public Law 107-16, as amended by Public Law 
45.32 	111-312, and section 301(c) of Public Law 111-312.
46.1 	(4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as 
46.2 	defined by section 2011(b)(3) of the Internal Revenue Code, plus
46.3 	(i) the amount of deduction for state death taxes allowed under section 2058 of 
46.4 	the Internal Revenue Code; less
46.5 	(ii)(A) the value of qualified small business property under section 291.03, 
46.6 	subdivision 9, and the value of qualified farm property under section 291.03, subdivision 
46.7 	10, or (B) $4,000,000, whichever is less.
46.8 	(5) "Minnesota gross estate" means the federal gross estate of a decedent after (a) 
46.9 	excluding therefrom any property included therein which has its situs outside Minnesota, 
46.10 	and (b) including therein any property omitted from the federal gross estate which is 
46.11 	includable therein, has its situs in Minnesota, and was not disclosed to federal taxing 
46.12 	authorities.
46.13 	(6) "Nonresident decedent" means an individual whose domicile at the time of 
46.14 	death was not in Minnesota.
46.15 	(7) "Personal representative" means the executor, administrator or other person 
46.16 	appointed by the court to administer and dispose of the property of the decedent. If there 
46.17 	is no executor, administrator or other person appointed, qualified, and acting within this 
46.18 	state, then any person in actual or constructive possession of any property having a situs in 
46.19 	this state which is included in the federal gross estate of the decedent shall be deemed 
46.20 	to be a personal representative to the extent of the property and the Minnesota estate tax 
46.21 	due with respect to the property.
46.22 	(8) "Resident decedent" means an individual whose domicile at the time of death 
46.23 	was in Minnesota.
46.24 	(9) "Situs of property" means, with respect to real property, the state or country in 
46.25 	which it is located; with respect to tangible personal property, the state or country in which 
46.26 	it was normally kept or located at the time of the decedent's death; and with respect to 
46.27 	intangible personal property, the state or country in which the decedent was domiciled 
46.28 	at death.

46.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

46.30 	Sec. 19. Laws 2010, chapter 216, section 11, the effective date, is amended to read:

46.31 	EFFECTIVE DATE. This section is effective for taxable years beginning 
46.32 	after December 31, 2009, for certified historic structures for which qualified costs of 
46.33 	rehabilitation are first paid under construction contracts entered intoafter May 1, 2010
46.34 	rehabilitation expenditures are first paid by the developer or taxpayer after May 1, 2010, 
47.1 	for rehabilitation that occurs after May 1, 2010, provided that the application under 
47.2 	subdivision 3 is submitted before the project is placed in service.

47.3 	EFFECTIVE DATE. This section is effective the day following final enactment 
47.4 	and applies retroactively for taxable years beginning after December 31, 2009, and for 
47.5 	certified historic structures placed in service after May 1, 2010, but the office may not 
47.6 	issue certificates allowed under the change to this section until July 1, 2013.

47.7 	Sec. 20. AMENDED RETURNS; CERTAIN IRA ROLLOVERS.
 47.8 	An individual who excludes an amount from net income in a prior taxable year 
47.9 	through rollover of an airline payment amount to a traditional IRA, as authorized under 
47.10 	Public Law 112-95, section 1106, may file an amended individual income tax return and 
47.11 	claim for refund of state taxes as provided under Minnesota Statutes, section 289A.40, 
47.12 	subdivision 1, or, if later, by April 15, 2013.

47.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

47.14 	Sec. 21.  REPEALER.
 47.15 	Minnesota Statutes 2010, section 290.92, subdivision 31, is repealed.

47.16 	EFFECTIVE DATE. This section is effective for payments made after June 30, 
47.17 	2012.

47.18 	ARTICLE 3
47.19 	SALES AND USE TAXES

47.20 	Section 1. Minnesota Statutes 2010, section 289A.20, subdivision 4, is amended to 
47.21 	read:
47.22 		Subd. 4.Sales and use tax. (a) The taxes imposed by chapter 297A are due and 
47.23 	payable to the commissioner monthly on or before the 20th day of the month following 
47.24 	the month in which the taxable event occurred, or following another reporting period 
47.25 	as the commissioner prescribes or as allowed under section 289A.18, subdivision 4, 
47.26 	paragraph (f) or (g), except that:
47.27 	(1) use taxes due on an annual use tax return as provided under section 289A.11, 
47.28 	subdivision 1, are payable by April 15 following the close of the calendar year; and.
47.29 	(2) except as provided in paragraph (f), for a vendor having a liability of $120,000 
47.30 	or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes 
48.1 	imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the 
48.2 	commissioner monthly in the following manner:
48.3 	(i) On or before the 14th day of the month following the month in which the taxable 
48.4 	event occurred, the vendor must remit to the commissioner 90 percent of the estimated 
48.5 	liability for the month in which the taxable event occurred.
48.6 	(ii) On or before the 20th day of the month in which the taxable event occurs, the 
48.7 	vendor must remit to the commissioner a prepayment for the month in which the taxable 
48.8 	event occurs equal to 67 percent of the liability for the previous month.
48.9 	(iii) On or before the 20th day of the month following the month in which the taxable 
48.10 	event occurred, the vendor must pay any additional amount of tax not previously remitted 
48.11 	under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than 
48.12 	the vendor's liability for the month in which the taxable event occurred, the vendor may 
48.13 	take a credit against the next month's liability in a manner prescribed by the commissioner.
48.14 	(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to 
48.15 	continue to make payments in the same manner, as long as the vendor continues having a 
48.16 	liability of $120,000 or more during the most recent fiscal year ending June 30.
48.17 	(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required 
48.18 	payment in the first month that the vendor is required to make a payment under either item 
48.19 	(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make 
48.20 	subsequent monthly payments in the manner provided in item (ii).
48.21 	(vi) For vendors making an accelerated payment under item (ii), for the first month 
48.22 	that the vendor is required to make the accelerated payment, on the 20th of that month, the 
48.23 	vendor will pay 100 percent of the liability for the previous month and a prepayment for 
48.24 	the first month equal to 67 percent of the liability for the previous month.
48.25 	(b) Notwithstanding paragraph (a), A vendor having a liability of $120,000 or more 
48.26 	during a fiscal year ending June 30 must remit the June liability for the next year in the 
48.27 	following manner:
48.28 	(1) Two business days before June 30 of the year, the vendor must remit 90 percent 
48.29 	of the estimated June liability to the commissioner.
48.30 	(2) On or before August 20 of the year, the vendor must pay any additional amount 
48.31 	of tax not remitted in June.
48.32 	(c) A vendor having a liability of:
48.33 	(1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30, 
48.34 	2009, and fiscal years thereafter, must remit by electronic means all liabilities on returns 
48.35 	due for periods beginning in the subsequent calendar year on or before the 20th day of 
48.36 	the month following the month in which the taxable event occurred, or on or before the 
49.1 	20th day of the month following the month in which the sale is reported under section 
49.2 	289A.18, subdivision 4; or
49.3 	(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years 
49.4 	thereafter, must remit by electronic means all liabilities in the manner provided in 
49.5 	paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar 
49.6 	year, except for 90 percent of the estimated June liability, which is due two business days 
49.7 	before June 30. The remaining amount of the June liability is due on August 20.
49.8 	(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's 
49.9 	religious beliefs from paying electronically shall be allowed to remit the payment by mail. 
49.10 	The filer must notify the commissioner of revenue of the intent to pay by mail before 
49.11 	doing so on a form prescribed by the commissioner. No extra fee may be charged to a 
49.12 	person making payment by mail under this paragraph. The payment must be postmarked 
49.13 	at least two business days before the due date for making the payment in order to be 
49.14 	considered paid on a timely basis.
49.15 	(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed 
49.16 	under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the 
49.17 	chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and 
49.18 	paid with the chapter 297A taxes, then the payment of all the liabilities on the return must 
49.19 	be accelerated as provided in this subdivision.
49.20 	(f) At the start of the first calendar quarter at least 90 days after the cash flow 
49.21 	account established in section 16A.152, subdivision 1, and the budget reserve account 
49.22 	established in section 16A.152, subdivision 1a, reach the amounts listed in section 
49.23 	16A.152, subdivision 2, paragraph (a), the remittance of the accelerated payments required 
49.24 	under paragraph (a), clause (2), must be suspended. The commissioner of management 
49.25 	and budget shall notify the commissioner of revenue when the accounts have reached 
49.26 	the required amounts. Beginning with the suspension of paragraph (a), clause (2), for a 
49.27 	vendor with a liability of $120,000 or more during a fiscal year ending June 30, 2009, 
49.28 	and fiscal years thereafter, the taxes imposed by chapter 297A are due and payable to the 
49.29 	commissioner on the 20th day of the month following the month in which the taxable 
49.30 	event occurred. Payments of tax liabilities for taxable events occurring in June under 
49.31 	paragraph (b) are not changed.

49.32 	EFFECTIVE DATE. This section is effective for taxes due and payable after 
49.33 	June 30, 2012.

49.34 	Sec. 2. Minnesota Statutes 2011 Supplement, section 295.53, subdivision 1, is 
49.35 	amended to read:
50.1 		Subdivision 1.Exemptions. (a) The following payments are excluded from the 
50.2 	gross revenues subject to the hospital, surgical center, or health care provider taxes under 
50.3 	sections 295.50 to 295.59:
50.4 	(1) payments received for services provided under the Medicare program, including 
50.5 	payments received from the government, and organizations governed by sections 1833 
50.6 	and 1876 of title XVIII of the federal Social Security Act, United States Code, title 42, 
50.7 	section 1395, and enrollee deductibles, coinsurance, and co-payments, whether paid by the 
50.8 	Medicare enrollee or by a Medicare supplemental coverage as defined in section 62A.011, 
50.9 	subdivision 3, clause (10), or by Medicaid payments under title XIX of the federal Social 
50.10 	Security Act. Payments for services not covered by Medicare are taxable;
50.11 	(2) payments received for home health care services;
50.12 	(3) payments received from hospitals or surgical centers for goods and services on 
50.13 	which liability for tax is imposed under section 295.52 or the source of funds for the 
50.14 	payment is exempt under clause (1), (7), (10), or (14);
50.15 	(4) payments received from health care providers for goods and services on which 
50.16 	liability for tax is imposed under this chapter or the source of funds for the payment is 
50.17 	exempt under clause (1), (7), (10), or (14);
50.18 	(5) amounts paid for legend drugs, other than nutritional products and blood and 
50.19 	blood components, to a wholesale drug distributor who is subject to tax under section 
50.20 	295.52, subdivision 3, reduced by reimbursements received for legend drugs otherwise 
50.21 	exempt under this chapter;
50.22 	(6) payments received by a health care provider or the wholly owned subsidiary of a 
50.23 	health care provider for care provided outside Minnesota;
50.24 	(7) payments received from the chemical dependency fund under chapter 254B;
50.25 	(8) payments received in the nature of charitable donations that are not designated 
50.26 	for providing patient services to a specific individual or group;
50.27 	(9) payments received for providing patient services incurred through a formal 
50.28 	program of health care research conducted in conformity with federal regulations 
50.29 	governing research on human subjects. Payments received from patients or from other 
50.30 	persons paying on behalf of the patients are subject to tax;
50.31 	(10) payments received from any governmental agency for services benefiting the 
50.32 	public, not including payments made by the government in its capacity as an employer 
50.33 	or insurer or payments made by the government for services provided under general 
50.34 	assistance medical care, the MinnesotaCare program, or the medical assistance program 
50.35 	governed by title XIX of the federal Social Security Act, United States Code, title 42, 
50.36 	sections 1396 to 1396v;
51.1 	(11) government payments received by the commissioner of human services for 
51.2 	state-operated services;
51.3 	(12) payments received by a health care provider for hearing aids and related 
51.4 	equipment or prescription eyewear delivered outside of Minnesota;
51.5 	(13) payments received by an educational institution from student tuition, student 
51.6 	activity fees, health care service fees, government appropriations, donations, or grants, 
51.7 	and for services identified in and provided under an individualized education program 
51.8 	as defined in section 256B.0625 or Code of Federal Regulations, chapter 34, section 
51.9 	300.340(a). Fee for service payments and payments for extended coverage are taxable;
51.10 	(14) payments received under the federal Employees Health Benefits Act, United 
51.11 	States Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of 
51.12 	1990. Enrollee deductibles, coinsurance, and co-payments are subject to tax; and
51.13 	(15) payments received under the federal Tricare program, Code of Federal 
51.14 	Regulations, title 32, section 199.17(a)(7). Enrollee deductibles, coinsurance, and 
51.15 	co-payments are subject to tax.; and
51.16 	(16) payments for laboratory services to examine and report results for a biological 
51.17 	specimen that is collected outside the state. The entity claiming the exemption is required 
51.18 	to keep adequate records demonstrating that the specimen was collected outside the state, 
51.19 	so that the commissioner can ensure that the correct amount of tax is paid.
51.20 	(b) Payments received by wholesale drug distributors for legend drugs sold directly 
51.21 	to veterinarians or veterinary bulk purchasing organizations are excluded from the gross 
51.22 	revenues subject to the wholesale drug distributor tax under sections 295.50 to 295.59.

51.23 	EFFECTIVE DATE. This section is effective for gross revenues received from 
51.24 	laboratory services provided on or after July 1, 2013.

51.25 	Sec. 3. Minnesota Statutes 2010, section 297A.61, subdivision 4, is amended to read:
51.26 		Subd. 4.Retail sale. (a) A "retail sale" means any sale, lease, or rental for any 
51.27 	purpose, other than resale, sublease, or subrent of items by the purchaser in the normal 
51.28 	course of business as defined in subdivision 21.
51.29 	(b) A sale of property used by the owner only by leasing it to others or by holding it 
51.30 	in an effort to lease it, and put to no use by the owner other than resale after the lease or 
51.31 	effort to lease, is a sale of property for resale.
51.32 	(c) A sale of master computer software that is purchased and used to make copies for 
51.33 	sale or lease is a sale of property for resale.
51.34 	(d) A sale of building materials, supplies, and equipment to owners, contractors, 
51.35 	subcontractors, or builders for the erection of buildings or the alteration, repair, or 
52.1 	improvement of real property is a retail sale in whatever quantity sold, whether the sale is 
52.2 	for purposes of resale in the form of real property or otherwise.
52.3 	(e) A sale of carpeting, linoleum, or similar floor covering to a person who provides 
52.4 	for installation of the floor covering is a retail sale and not a sale for resale since a sale 
52.5 	of floor covering which includes installation is a contract for the improvement of real 
52.6 	property.
52.7 	(f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides 
52.8 	for installation of the items is a retail sale and not a sale for resale since a sale of 
52.9 	shrubbery, plants, sod, trees, and similar items that includes installation is a contract for 
52.10 	the improvement of real property.
52.11 	(g) A sale of tangible personal property that is awarded as prizes is a retail sale and 
52.12 	is not considered a sale of property for resale.
52.13 	(h) A sale of tangible personal property utilized or employed in the furnishing or 
52.14 	providing of services under subdivision 3, paragraph (g), clause (1), including, but not 
52.15 	limited to, property given as promotional items, is a retail sale and is not considered a 
52.16 	sale of property for resale.
52.17 	(i) A sale of tangible personal property used in conducting lawful gambling under 
52.18 	chapter 349 or the State Lottery under chapter 349A, including, but not limited to, 
52.19 	property given as promotional items, is a retail sale and is not considered a sale of 
52.20 	property for resale.
52.21 	(j) A sale of machines, equipment, or devices that are used to furnish, provide, or 
52.22 	dispense goods or services, including, but not limited to, coin-operated devices, is a retail 
52.23 	sale and is not considered a sale of property for resale.
52.24 	(k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease 
52.25 	payment becomes due under the terms of the agreement or the trade practices of the lessor 
52.26 	or; (2) in the case of a lease of a motor vehicle, as defined in section 297B.01, subdivision 
52.27 	11, but excluding vehicles with a manufacturer's gross vehicle weight rating greater than 
52.28 	10,000 pounds and rentals of vehicles for not more than 28 days, at the time the lease is 
52.29 	executed; or (3) for rent-to-own or lease-to-own used vehicles where the lessee may 
52.30 	purchase or return the vehicle at any time without penalty, at the time each payment is 
52.31 	made under the terms of the agreement.
52.32 	(l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of 
52.33 	title or possession of the tangible personal property.
52.34 	(m) A sale of a bundled transaction in which one or more of the products included 
52.35 	in the bundle is a taxable product is a retail sale, except that if one of the products 
52.36 	is a telecommunication service, ancillary service, Internet access, or audio or video 
53.1 	programming service, and the seller has maintained books and records identifying through 
53.2 	reasonable and verifiable standards the portions of the price that are attributable to the 
53.3 	distinct and separately identifiable products, then the products are not considered part of a 
53.4 	bundled transaction. For purposes of this paragraph:
53.5 	(1) the books and records maintained by the seller must be maintained in the regular 
53.6 	course of business, and do not include books and records created and maintained by the 
53.7 	seller primarily for tax purposes;
53.8 	(2) books and records maintained in the regular course of business include, but are 
53.9 	not limited to, financial statements, general ledgers, invoicing and billing systems and 
53.10 	reports, and reports for regulatory tariffs and other regulatory matters; and
53.11 	(3) books and records are maintained primarily for tax purposes when the books 
53.12 	and records identify taxable and nontaxable portions of the price, but the seller maintains 
53.13 	other books and records that identify different prices attributable to the distinct products 
53.14 	included in the same bundled transaction.

53.15 	EFFECTIVE DATE. This section is effective for leases entered into after June 
53.16 	30, 2012.

53.17 	Sec. 4. Minnesota Statutes 2010, section 297A.68, subdivision 5, is amended to read:
53.18 		Subd. 5.Capital equipment. (a) Capital equipment is exempt. Except as provided 
53.19 	in paragraphs (e) and (f), the tax must be imposed and collected as if the rate under section 
53.20 	297A.62, subdivision 1, applied, and then refunded in the manner provided in section 
53.21 	297A.75.
53.22 	"Capital equipment" means machinery and equipment purchased or leased, and used 
53.23 	in this state by the purchaser or lessee primarily for manufacturing, fabricating, mining, 
53.24 	or refining tangible personal property to be sold ultimately at retail if the machinery and 
53.25 	equipment are essential to the integrated production process of manufacturing, fabricating, 
53.26 	mining, or refining. Capital equipment also includes machinery and equipment 
53.27 	used primarily to electronically transmit results retrieved by a customer of an online 
53.28 	computerized data retrieval system.
53.29 	(b) Capital equipment includes, but is not limited to:
53.30 	(1) machinery and equipment used to operate, control, or regulate the production 
53.31 	equipment;
53.32 	(2) machinery and equipment used for research and development, design, quality 
53.33 	control, and testing activities;
54.1 	(3) environmental control devices that are used to maintain conditions such as 
54.2 	temperature, humidity, light, or air pressure when those conditions are essential to and are 
54.3 	part of the production process;
54.4 	(4) materials and supplies used to construct and install machinery or equipment;
54.5 	(5) repair and replacement parts, including accessories, whether purchased as spare 
54.6 	parts, repair parts, or as upgrades or modifications to machinery or equipment;
54.7 	(6) materials used for foundations that support machinery or equipment;
54.8 	(7) materials used to construct and install special purpose buildings used in the 
54.9 	production process;
54.10 	(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed 
54.11 	as part of the delivery process regardless if mounted on a chassis, repair parts for 
54.12 	ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and
54.13 	(9) machinery or equipment used for research, development, design, or production 
54.14 	of computer software.
54.15 	(c) Capital equipment does not include the following:
54.16 	(1) motor vehicles taxed under chapter 297B;
54.17 	(2) machinery or equipment used to receive or store raw materials;
54.18 	(3) building materials, except for materials included in paragraph (b), clauses (6) 
54.19 	and (7);
54.20 	(4) machinery or equipment used for nonproduction purposes, including, but not 
54.21 	limited to, the following: plant security, fire prevention, first aid, and hospital stations; 
54.22 	support operations or administration; pollution control; and plant cleaning, disposal of 
54.23 	scrap and waste, plant communications, space heating, cooling, lighting, or safety;
54.24 	(5) farm machinery and aquaculture production equipment as defined by section 
54.25 	297A.61, subdivisions 12 and 13;
54.26 	(6) machinery or equipment purchased and installed by a contractor as part of an 
54.27 	improvement to real property;
54.28 	(7) machinery and equipment used by restaurants in the furnishing, preparing, or 
54.29 	serving of prepared foods as defined in section 297A.61, subdivision 31;
54.30 	(8) machinery and equipment used to furnish the services listed in section 297A.61, 
54.31 	subdivision 3, paragraph (g), clause (6), items (i) to (vi) and (viii);
54.32 	(9) machinery or equipment used in the transportation, transmission, or distribution 
54.33 	of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines, 
54.34 	tanks, mains, or other means of transporting those products. This clause does not apply to 
54.35 	machinery or equipment used to blend petroleum or biodiesel fuel as defined in section 
54.36 	239.77; or
55.1 	(10) any other item that is not essential to the integrated process of manufacturing, 
55.2 	fabricating, mining, or refining.
55.3 	(d) For purposes of this subdivision:
55.4 	(1) "Equipment" means independent devices or tools separate from machinery but 
55.5 	essential to an integrated production process, including computers and computer software, 
55.6 	used in operating, controlling, or regulating machinery and equipment; and any subunit or 
55.7 	assembly comprising a component of any machinery or accessory or attachment parts of 
55.8 	machinery, such as tools, dies, jigs, patterns, and molds.
55.9 	(2) "Fabricating" means to make, build, create, produce, or assemble components or 
55.10 	property to work in a new or different manner.
55.11 	(3) "Integrated production process" means a process or series of operations through 
55.12 	which tangible personal property is manufactured, fabricated, mined, or refined. For 
55.13 	purposes of this clause, (i) manufacturing begins with the removal of raw materials 
55.14 	from inventory and ends when the last process prior to loading for shipment has been 
55.15 	completed; (ii) fabricating begins with the removal from storage or inventory of the 
55.16 	property to be assembled, processed, altered, or modified and ends with the creation 
55.17 	or production of the new or changed product; (iii) mining begins with the removal of 
55.18 	overburden from the site of the ores, minerals, stone, peat deposit, or surface materials and 
55.19 	ends when the last process before stockpiling is completed; and (iv) refining begins with 
55.20 	the removal from inventory or storage of a natural resource and ends with the conversion 
55.21 	of the item to its completed form.
55.22 	(4) "Machinery" means mechanical, electronic, or electrical devices, including 
55.23 	computers and computer software, that are purchased or constructed to be used for the 
55.24 	activities set forth in paragraph (a), beginning with the removal of raw materials from 
55.25 	inventory through completion of the product, including packaging of the product.
55.26 	(5) "Machinery and equipment used for pollution control" means machinery and 
55.27 	equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity 
55.28 	described in paragraph (a).
55.29 	(6) "Manufacturing" means an operation or series of operations where raw materials 
55.30 	are changed in form, composition, or condition by machinery and equipment and which 
55.31 	results in the production of a new article of tangible personal property. For purposes of 
55.32 	this subdivision, "manufacturing" includes the generation of electricity or steam to be 
55.33 	sold at retail.
55.34 	(7) "Mining" means the extraction of minerals, ores, stone, or peat.
55.35 	(8) "Online data retrieval system" means a system whose cumulation of information 
55.36 	is equally available and accessible to all its customers.
56.1 	(9) "Primarily" means machinery and equipment used 50 percent or more of the time 
56.2 	in an activity described in paragraph (a).
56.3 	(10) "Refining" means the process of converting a natural resource to an intermediate 
56.4 	or finished product, including the treatment of water to be sold at retail.
56.5 	(11) This subdivision does not apply to telecommunications equipment as 
56.6 	provided in subdivision 35, and does not apply to wire, cable, fiber, poles, or conduit 
56.7 	for telecommunications services.
56.8 	(e) Materials exempt under this section may be purchased without imposing and 
56.9 	collecting the tax and applying for a refund under section 297A.75, if, for calendar years 
56.10 	2013 to 2015, the purchaser employed not more than 80 full-time employees at any time 
56.11 	during calendar year 2010, and:
56.12 	(1) did not have more than $1,000,000 in annual gross revenues or $2,500,000 in 
56.13 	annual gross revenues if the business is a technical or professional service; and
56.14 	(2) was not more than 20 percent owned by a business that had more than $1,000,000 
56.15 	in annual gross revenues or $2,500,000 in annual gross revenues if the business is a 
56.16 	technical or professional service.
56.17 	(f) For calendar year 2016 and thereafter, all purchases exempt under this section 
56.18 	may be purchased without imposing and collecting the tax and applying the refund 
56.19 	under section 297A.75.

56.20 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
56.21 	June 30, 2012.

56.22 	Sec. 5. Minnesota Statutes 2011 Supplement, section 297A.68, subdivision 42, is 
56.23 	amended to read:
56.24 		Subd. 42.Qualified data centers. (a) Purchases of enterprise information 
56.25 	technology equipment and computer software for use in a qualified data center are exempt. 
56.26 	The tax on purchases exempt under this paragraph must be imposed and collected as if 
56.27 	the rate under section 297A.62, subdivision 1, applied, and then refunded after June 30, 
56.28 	2013, in the manner provided in section 297A.75. This exemption includes enterprise 
56.29 	information technology equipment and computer software purchased to replace or upgrade 
56.30 	enterprise information technology equipment and computer software in a qualified data 
56.31 	center.
56.32 	(b) Electricity used or consumed in the operation of a qualified data center is exempt.
56.33 	(c) For purposes of this subdivision, "qualified data center" means a facility in 
56.34 	Minnesota:
57.1 	(1) that is comprised of one or more buildings that consist in the aggregate of at 
57.2 	least 30,000 square feet, and that are located on a single parcel or on contiguous parcels, 
57.3 	where the total cost of construction or refurbishment, investment in enterprise information 
57.4 	technology equipment, and computer software is at least $50,000,000 $30,000,000 within 
57.5 	a 24-month three-year period;
57.6 	(2) that is constructed or substantially refurbished after June 30, 2012, where 
57.7 	"substantially refurbished" means that at least 30,000 25,000 square feet have been rebuilt 
57.8 	or modified; and, including:
57.9 	(i) installation of enterprise information technology equipment, computer software, 
57.10 	environmental control and energy efficiency improvements; and
57.11 	(ii) building improvements; and
57.12 	(3) that is used to house enterprise information technology equipment, where the 
57.13 	facility has the following characteristics:
57.14 	(i) uninterruptible power supplies, generator backup power, or both;
57.15 	(ii) sophisticated fire suppression and prevention systems; and
57.16 	(iii) enhanced security. A facility will be considered to have enhanced security if it 
57.17 	has restricted access to the facility to selected personnel; permanent security guards; video 
57.18 	camera surveillance; an electronic system requiring pass codes, keycards, or biometric 
57.19 	scans, such as hand scans and retinal or fingerprint recognition; or similar security features.
57.20 	In determining whether the facility has the required square footage, the square 
57.21 	footage of the following spaces shall be included if the spaces support the operation 
57.22 	of enterprise information technology equipment: office space, meeting space, and 
57.23 	mechanical and other support facilities. For purposes of this subdivision, "computer 
57.24 	software" includes, but is not limited to, software utilized or loaded at the qualified data 
57.25 	center, including maintenance, licensing, and software customization.
57.26 	(d) For purposes of this subdivision, "enterprise information technology equipment" 
57.27 	means computers and equipment supporting computing, networking, or data storage, 
57.28 	including servers and routers. It includes, but is not limited to: cooling systems, 
57.29 	cooling towers, and other temperature control infrastructure; power infrastructure for 
57.30 	transformation, distribution, or management of electricity used for the maintenance 
57.31 	and operation of a qualified data center, including but not limited to exterior dedicated 
57.32 	business-owned substations, backup power generation systems, battery systems, and 
57.33 	related infrastructure; and racking systems, cabling, and trays, which are necessary for 
57.34 	the maintenance and operation of the qualified data center.
58.1 	(e) A qualified data center may claim the exemptions in this subdivision for 
58.2 	purchases made either within 20 years of the date of its first purchase qualifying for the 
58.3 	exemption under paragraph (a), or by June 30, 2042, whichever is earlier.
58.4 	(f) The purpose of this exemption is to create jobs in the construction and data 
58.5 	center industries.
58.6 	(g) This subdivision is effective for sales and purchases made after June 30, 2012, 
58.7 	and before July 1, 2042.

58.8 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
58.9 	June 30, 2012.

58.10 	Sec. 6. Minnesota Statutes 2010, section 297A.70, subdivision 4, is amended to read:
58.11 		Subd. 4.Sales to nonprofit groups. (a) All sales, except those listed in paragraph 
58.12 	(b), to the following "nonprofit organizations" are exempt:
58.13 	(1) a corporation, society, association, foundation, or institution organized and 
58.14 	operated exclusively for charitable, religious, or educational purposes if the item 
58.15 	purchased is used in the performance of charitable, religious, or educational functions; and
58.16 	(2) any senior citizen group or association of groups that:
58.17 	(i) in general limits membership to persons who are either age 55 or older, or 
58.18 	physically disabled;
58.19 	(ii) is organized and operated exclusively for pleasure, recreation, and other 
58.20 	nonprofit purposes, not including housing, no part of the net earnings of which inures to 
58.21 	the benefit of any private shareholders; and
58.22 	(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.
58.23 	For purposes of this subdivision, charitable purpose includes the maintenance of a 
58.24 	cemetery owned by a religious organization.
58.25 	(b) This exemption does not apply to the following sales:
58.26 	(1) building, construction, or reconstruction materials purchased by a contractor 
58.27 	or a subcontractor as a part of a lump-sum contract or similar type of contract with a 
58.28 	guaranteed maximum price covering both labor and materials for use in the construction, 
58.29 	alteration, or repair of a building or facility;
58.30 	(2) construction materials purchased by tax-exempt entities or their contractors to 
58.31 	be used in constructing buildings or facilities that will not be used principally by the 
58.32 	tax-exempt entities; and
58.33 	(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause 
58.34 	(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 
59.1 	297A.67, subdivision 2, except wine purchased by an established religious organization 
59.2 	for sacramental purposes or as allowed under subdivision 9a; and
59.3 	(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except 
59.4 	as provided in paragraph (c).
59.5 	(c) This exemption applies to the leasing of a motor vehicle as defined in section 
59.6 	297B.01, subdivision 11, only if the vehicle is:
59.7 	(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a 
59.8 	passenger automobile, as defined in section 168.002, if the automobile is designed and 
59.9 	used for carrying more than nine persons including the driver; and
59.10 	(2) intended to be used primarily to transport tangible personal property or 
59.11 	individuals, other than employees, to whom the organization provides service in 
59.12 	performing its charitable, religious, or educational purpose.
59.13 	(d) A limited liability company also qualifies for exemption under this subdivision if 
59.14 	(1) it consists of a sole member that would qualify for the exemption, and (2) the items 
59.15 	purchased qualify for the exemption.

59.16 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
59.17 	June 30, 2012.

59.18 	Sec. 7. Minnesota Statutes 2010, section 297A.70, is amended by adding a subdivision 
59.19 	to read:
59.20 		Subd. 9a.Established religious orders. (a) Sales of lodging, prepared food, candy, 
59.21 	soft drinks, and alcoholic beverages at noncatered events between an established religious 
59.22 	order and an affiliated institution of higher education are exempt.
59.23 	(b) For purposes of this subdivision, "established religious order" means an 
59.24 	organization directly or indirectly under the control or supervision of a church or 
59.25 	convention or association of churches, where members of the organization (1) normally 
59.26 	live together as part of a community, (2) make long-term commitments to live under a 
59.27 	strict set of moral and spiritual rules, and (3) work or engage full time in a combination 
59.28 	of prayer, religious study, church reform or renewal, or other religious, educational, or 
59.29 	charitable goals of the organization.
59.30 	(c) For purposes of this subdivision, an institution of higher education is "affiliated" 
59.31 	with an established religious order if members of the religious order are represented 
59.32 	on the governing board of the institution of higher education and the two organization 
59.33 	share campus space and common facilities.

60.1 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
60.2 	June 30, 2012.

60.3 	Sec. 8. Minnesota Statutes 2010, section 297A.70, is amended by adding a subdivision 
60.4 	to read:
60.5 		Subd. 18.Nursing homes and boarding care homes. (a) All sales, except those 
60.6 	listed in paragraph (b), to a nursing home licensed under section 144A.02 or a boarding 
60.7 	care home certified as a nursing facility under title 19 of the Social Security Act are 
60.8 	exempt if the facility:
60.9 	(1) is exempt from federal income taxation pursuant to section 501(c)(3) of the 
60.10 	Internal Revenue Code; and
60.11 	(2) is certified to participate in the medical assistance program under title 19 of the 
60.12 	Social Security Act, or certifies to the commissioner that it does not discharge residents 
60.13 	due to the inability to pay.
60.14 	(b) This exemption does not apply to the following sales:
60.15 	(1) building, construction, or reconstruction materials purchased by a contractor 
60.16 	or a subcontractor as a part of a lump-sum contract or similar type of contract with a 
60.17 	guaranteed maximum price covering both labor and materials for use in the construction, 
60.18 	alteration, or repair of a building or facility;
60.19 	(2) construction materials purchased by tax-exempt entities or their contractors to 
60.20 	be used in constructing buildings or facilities that will not be used principally by the 
60.21 	tax-exempt entities;
60.22 	(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause 
60.23 	(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 
60.24 	297A.67, subdivision 2; and
60.25 	(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except 
60.26 	as provided in paragraph (c).
60.27 	(c) This exemption applies to the leasing of a motor vehicle as defined in section 
60.28 	297B.01, subdivision 11, only if the vehicle is:
60.29 	(1) a truck, as defined in section 168.002; a bus, as defined in section 168.002; or a 
60.30 	passenger automobile, as defined in section 168.002, if the automobile is designed and 
60.31 	used for carrying more than nine persons including the driver; and
60.32 	(2) intended to be used primarily to transport tangible personal property or residents 
60.33 	of the nursing home or boarding care home.

60.34 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
60.35 	June 30, 2012.

61.1 	Sec. 9. Minnesota Statutes 2010, section 297A.815, subdivision 3, is amended to read:
61.2 		Subd. 3.Motor vehicle lease sales tax revenue. (a) For purposes of this 
61.3 	subdivision, "net revenue" means an amount equal to:
61.4 	(1) the revenues, including interest and penalties, collected under this section and 
61.5 	on the leases under section 297A.61, subdivision 4, paragraph (k), clause (3), during 
61.6 	the fiscal year; less
61.7 	(2) in fiscal year 2011, $30,100,000; in fiscal year 2012, $31,100,000; and in fiscal 
61.8 	year 2013 and following fiscal years, $32,000,000.
61.9 	(b) On or before June 30 of each fiscal year, the commissioner of revenue shall 
61.10 	estimate the amount of the revenues and subtraction under paragraph (a) for the current 
61.11 	fiscal year.
61.12 	(c) On or after July 1 of the subsequent fiscal year, the commissioner of management 
61.13 	and budget shall transfer the net revenue as estimated in paragraph (b) from the general 
61.14 	fund, as follows:
61.15 	(1) 50 percent to the greater Minnesota transit account; and
61.16 	(2) 50 percent to the county state-aid highway fund. Notwithstanding any other law 
61.17 	to the contrary, the commissioner of transportation shall allocate the funds transferred 
61.18 	under this clause to the counties in the metropolitan area, as defined in section 473.121, 
61.19 	subdivision 4, excluding the counties of Hennepin and Ramsey, so that each county shall 
61.20 	receive of such amount the percentage that its population, as defined in section 477A.011, 
61.21 	subdivision 3, estimated or established by July 15 of the year prior to the current calendar 
61.22 	year, bears to the total population of the counties receiving funds under this clause.
61.23 	(d) For fiscal years 2010 and 2011, the amount under paragraph (a), clause (1), must 
61.24 	be calculated using the following percentages of the total revenues:
61.25 	(1) for fiscal year 2010, 83.75 percent; and
61.26 	(2) for fiscal year 2011, 93.75 percent.

61.27 	EFFECTIVE DATE. This section is effective for leases entered into after June 
61.28 	30, 2012.

61.29 	Sec. 10. Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by 
61.30 	Laws 2005, First Special Session chapter 3, article 5, section 28, and Laws 2011, First 
61.31 	Special Session chapter 7, article 4, section 5, is amended to read:
61.32 		Subd. 3.Use of revenues. (a) Revenues received from the taxes authorized by 
61.33 	subdivisions 1 and 2 must be used by the city to pay for the cost of collecting and 
61.34 	administering the taxes and to pay for the following projects:
62.1 	(1) transportation infrastructure improvements including regional highway and 
62.2 	airport improvements;
62.3 	(2) improvements to the civic center complex;
62.4 	(3) a municipal water, sewer, and storm sewer project necessary to improve regional 
62.5 	ground water quality; and
62.6 	(4) construction of a regional recreation and sports center and other higher education 
62.7 	facilities available for both community and student use.
62.8 	(b) The total amount of capital expenditures or bonds for projects listed in paragraph 
62.9 	(a) that may be paid from the revenues raised from the taxes authorized in this section 
62.10 	may not exceed $111,500,000. The total amount of capital expenditures or bonds for the 
62.11 	project in clause (4) that may be paid from the revenues raised from the taxes authorized 
62.12 	in this section may not exceed $28,000,000.
62.13 	(c) In addition to the projects authorized in paragraph (a) and not subject to the 
62.14 	amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an 
62.15 	election under subdivision 5, paragraph (c), use the revenues received from the taxes and 
62.16 	bonds authorized in this section to pay the costs of or bonds for the following purposes:
62.17 	(1) $17,000,000 for capital expenditures and bonds for the following Olmsted 
62.18 	County transportation infrastructure improvements:
62.19 	(i) County State Aid Highway 34 reconstruction;
62.20 	(ii) Trunk Highway 63 and County State Aid Highway 16 interchange; 
62.21 	(iii) phase II of the Trunk Highway 52 and County State Aid Highway 22 
62.22 	interchange;
62.23 	(iv) widening of County State Aid Highway 22 West Circle Drive; and 
62.24 	(v) 60th Avenue Northwest corridor preservation;
62.25 	(2) $30,000,000 for city transportation projects including:
62.26 	(i) Trunk Highway 52 and 65th Street interchange;
62.27 	(ii) NW transportation corridor acquisition; 
62.28 	(iii) Phase I of the Trunk Highway 52 and County State Aid Highway 22 interchange;
62.29 	(iv) Trunk Highway 14 and Trunk Highway 63 intersection;
62.30 	(v) Southeast transportation corridor acquisition;
62.31 	(vi) Rochester International Airport expansion; and 
62.32 	(vii) a transit operations center bus facility;
62.33 	(3) $14,000,000 for the University of Minnesota Rochester academic and 
62.34 	complementary facilities;
62.35 	(4) $6,500,000 for the Rochester Community and Technical College/Winona State 
62.36 	University career technical education and science and math facilities;
63.1 	(5) $6,000,000 for the Rochester Community and Technical College regional 
63.2 	recreation facilities at University Center Rochester;
63.3 	(6) $20,000,000 for the Destination Medical Community Initiative;
63.4 	(7) $8,000,000 for the regional public safety and 911 dispatch center facilities;
63.5 	(8) $20,000,000 for a regional recreation/senior center;
63.6 	(9) $10,000,000 for an economic development fund; and
63.7 	(10) $8,000,000 for downtown infrastructure.
63.8 	(d) No revenues from the taxes raised from the taxes authorized in subdivisions 1 
63.9 	and 2 may be used to fund transportation improvements related to a railroad bypass that 
63.10 	would divert traffic from the city of Rochester.
63.11 	(e) The city shall use $5,000,000 of the money allocated to the purpose in paragraph 
63.12 	(c), clause (9), for grants to the cities of Byron, Chatfield, Dodge Center, Dover, Elgin, 
63.13 	Eyota, Kasson, Mantorville, Oronoco, Pine Island, Plainview, St. Charles, Stewartville, 
63.14 	Zumbrota, Spring Valley, West Concord, and Hayfield, and any other city with a 2010 
63.15 	population of at least 1,000 that has a city boundary within 25 miles of the geographic 
63.16 	center of Rochester and is closer to Rochester than to any other city located wholly 
63.17 	outside of the seven-county metropolitan area with a population of 20,000 or more,
63.18 	for economic development projects that these communities would fund through their 
63.19 	economic development authority or housing and redevelopment authority.

63.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

63.21 	Sec. 11. Laws 2002, chapter 377, article 3, section 25, as amended by Laws 2009, 
63.22 	chapter 88, article 4, section 19, and Laws 2010, chapter 389, article 5, section 3, is 
63.23 	amended to read:
63.24 	Sec. 25. ROCHESTER LODGING TAX.
 63.25 		Subdivision 1.Authorization. Notwithstanding Minnesota Statutes, section 
63.26 	469.190 or 477A.016, or any other law, the city of Rochester may impose an additional 
63.27 	tax of one percent on the gross receipts from the furnishing for consideration of lodging at 
63.28 	a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it 
63.29 	for a continuous period of 30 days or more.
63.30 		Subd. 1a.Authorization. Notwithstanding Minnesota Statutes, section 469.190
63.31 	or 477A.016, or any other law, and in addition to the tax authorized by subdivision 1, 
63.32 	the city of Rochester may impose an additional tax of one three percent on the gross 
63.33 	receipts from the furnishing for consideration of lodging at a hotel, motel, rooming house, 
63.34 	tourist court, or resort, other than the renting or leasing of it for a continuous period of 
64.1 	30 days or more only upon the approval of the city governing body of a total financial 
64.2 	package for the project.
64.3 		Subd. 2.Disposition of proceeds. (a) The gross proceeds from the tax imposed 
64.4 	under subdivision 1 must be used by the city to fund a local convention or tourism bureau 
64.5 	for the purpose of marketing and promoting the city as a tourist or convention center.
64.6 	(b) The gross proceeds from the one three percent tax imposed under subdivision 
64.7 	1a shall be used to pay for (1) construction, renovation, improvement, and expansion of 
64.8 	the Mayo Civic Center and related skyway access, lighting, parking, or landscaping; and 
64.9 	(2) for payment of any principal, interest, or premium on bonds issued to finance the 
64.10 	construction, renovation, improvement, and expansion of the Mayo Civic Center Complex.
64.11 		Subd. 2a.Bonds. The city of Rochester may issue, without an election, general 
64.12 	obligation bonds of the city, in one or more series, in the aggregate principal amount 
64.13 	not to exceed $43,500,000, to pay for capital and administrative costs for the design, 
64.14 	construction, renovation, improvement, and expansion of the Mayo Civic Center Complex, 
64.15 	and related skyway, access, lighting, parking, and landscaping. The city may pledge 
64.16 	the lodging tax authorized by subdivision 1a and the food and beverage tax authorized 
64.17 	under Laws 2009, chapter 88, article 4, section 23, to the payment of the bonds. The debt 
64.18 	represented by the bonds is not included in computing any debt limitations applicable to 
64.19 	the city, and the levy of taxes required by Minnesota Statutes, section 475.61, to pay the 
64.20 	principal of and interest on the bonds is not subject to any levy limitation or included in 
64.21 	computing or applying any levy limitation applicable to the city.
64.22 		Subd. 3.Expiration of taxing authority. The authority of the city to impose a 
64.23 	tax under subdivision 1a shall expire when the principal and interest on any bonds or 
64.24 	other obligations issued prior to December 31, 2014 2016, to finance the construction, 
64.25 	renovation, improvement, and expansion of the Mayo Civic Center Complex and related 
64.26 	skyway access, lighting, parking, or landscaping have been paid, including any bonds 
64.27 	issued to refund such bonds, or at an earlier time as the city shall, by ordinance, determine. 
64.28 	Any funds remaining after completion of the project and retirement or redemption of the 
64.29 	bonds shall be placed in the general fund of the city.

64.30 	EFFECTIVE DATE. This section is effective the day after the governing body of 
64.31 	the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section 
64.32 	645.021, subdivisions 2 and 3.

64.33 	Sec. 12. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision 
64.34 	2, is amended to read:
65.1 		Subd. 2.Use of revenues. (a) Revenues received from the tax authorized by 
65.2 	subdivision 1 by the city of St. Cloud must be used for the cost of collecting and 
65.3 	administering the tax and to pay all or part of the capital or administrative costs of the 
65.4 	development, acquisition, construction, improvement, and securing and paying debt 
65.5 	service on bonds or other obligations issued to finance the following regional projects as 
65.6 	approved by the voters and specifically detailed in the referendum authorizing the tax or 
65.7 	extending the tax:
65.8 	(1) St. Cloud Regional Airport;
65.9 	(2) regional transportation improvements;
65.10 	(3) regional community and aquatics centers and facilities;
65.11 	(4) regional public libraries; and 
65.12 	(5) acquisition and improvement of regional park land and open space.
65.13 	(b) Revenues received from the tax authorized by subdivision 1 by the cities of St. 
65.14 	Joseph, Waite Park, Sartell, Sauk Rapids, and St. Augusta must be used for the cost of 
65.15 	collecting and administering the tax and to pay all or part of the capital or administrative 
65.16 	costs of the development, acquisition, construction, improvement, and securing and paying 
65.17 	debt service on bonds or other obligations issued to fund the projects specifically approved 
65.18 	by the voters at the referendum authorizing the tax or extending the tax. The portion of 
65.19 	revenues from the city going to fund the regional airport or regional library located in the 
65.20 	city of St. Cloud will be as required under the applicable joint powers agreement.
65.21 	(c) The use of revenues received from the taxes authorized in subdivision 1 for 
65.22 	projects allowed under paragraphs (a) and (b) are limited to the amount authorized for 
65.23 	each project under the enabling referendum.

65.24 	EFFECTIVE DATE. This section is effective for the city that approves them the 
65.25 	day after compliance by the governing body of each city with Minnesota Statutes, section 
65.26 	645.021, subdivision 3.

65.27 	Sec. 13. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision 
65.28 	4, is amended to read:
65.29 		Subd. 4.Termination of tax. The tax imposed in the cities of St. Joseph, St. Cloud, 
65.30 	St. Augusta, Sartell, Sauk Rapids, and Waite Park under subdivision 1 expires when the 
65.31 	city council determines that sufficient funds have been collected from the tax to retire or 
65.32 	redeem the bonds and obligations authorized under subdivision 2, paragraph (a), but no 
65.33 	later than December 31, 2018. Notwithstanding Minnesota Statutes, section 297A.99, 
65.34 	subdivision 3, paragraphs (a), (c), and (d), a city may extend the tax imposed under 
65.35 	subdivision 1 through December 31, 2038, if approved under the referendum authorizing 
66.1 	the tax under subdivision 1 or if approved by voters of the city at a general election held 
66.2 	no later than November 6, 2017.

66.3 	EFFECTIVE DATE. This section is effective for the city that approves them the 
66.4 	day after compliance by the governing body of each city with Minnesota Statutes, section 
66.5 	645.021, subdivision 3.

66.6 	Sec. 14. Laws 2008, chapter 366, article 7, section 19, subdivision 3, as amended by 
66.7 	Laws 2011, First Special Session chapter 7, article 4, section 8, is amended to read:
66.8 		Subd. 3.Use of revenues. Notwithstanding Minnesota Statutes, section 297A.99, 
66.9 	subdivision 3, paragraph (b), the proceeds of the tax imposed under this section shall be 
66.10 	used to pay for the costs of improvements to the Sportsman Park/Ballfields, Riverside 
66.11 	Park, Lions Park/Pavilion, Cedar South Park also known as Eldorado Park, and Spring 
66.12 	Street Park; improvements to and extension of the River County bike trail; acquisition,
66.13 	and construction, improvement, and development of regional parks, bicycle trails, park 
66.14 	land, open space, andof a pedestrian walkways, as described in the city improvement plan 
66.15 	adopted by the city council by resolution on December 12, 2006, and walkway over 
66.16 	Interstate 94 and State Highway 24; and the acquisition of land and construction of 
66.17 	buildings for a community and recreation center. The total amount of revenues from the 
66.18 	taxes in subdivisions 1 and 2 that may be used to fund these projects is $12,000,000 
66.19 	plus any associated bond costs.

66.20 	EFFECTIVE DATE. This section is effective the day after compliance by the 
66.21 	governing body of the city of Clearwater with Minnesota Statutes, section 645.021, 
66.22 	subdivisions 2 and 3.

66.23 	Sec. 15.  REPEALER.
 66.24 	(a) Minnesota Statutes 2011 Supplement, section 289A.60, subdivision 31, is 
66.25 	repealed. 
66.26 	(b) Laws 2009, chapter 88, article 4, section 23, as amended by Laws 2010, chapter 
66.27 	389, article 5, section 4, is repealed.

66.28 	EFFECTIVE DATE. Paragraph (a) is effective for taxes due and payable after June 
66.29 	30, 2012. Paragraph (b) is effective the day following final enactment.

67.1 	ARTICLE 4
67.2 	LOCAL DEVELOPMENT

67.3 	Section 1. Minnesota Statutes 2010, section 469.174, subdivision 2, is amended to read:
67.4 		Subd. 2.Authority. "Authority" means a rural development financing authority 
67.5 	created pursuant to sections 469.142 to 469.151; a housing and redevelopment authority 
67.6 	created pursuant to sections 469.001 to 469.047; a port authority created pursuant to 
67.7 	sections 469.048 to 469.068; an economic development authority created pursuant to 
67.8 	sections 469.090 to 469.108; a redevelopment agency as defined in sections 469.152 to 
67.9 	469.165; a municipality that is administering a development district created pursuant to 
67.10 	sections 469.124 to 469.134 or any special law; a municipality that undertakes a project 
67.11 	pursuant to sections 469.152 to 469.165, except a town located outside the metropolitan 
67.12 	area or with a population of 5,000 persons or less; a municipality that undertakes a project 
67.13 	located in an area designated under subdivision 30; or a municipality that exercises the 
67.14 	powers of a port authority pursuant to any general or special law.

67.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

67.16 	Sec. 2. Minnesota Statutes 2010, section 469.174, subdivision 10, is amended to read:
67.17 		Subd. 10.Redevelopment district. (a) "Redevelopment district" means a type of 
67.18 	tax increment financing district consisting of a project, or portions of a project, within 
67.19 	which the authority finds by resolution that one or more of the following conditions, 
67.20 	reasonably distributed throughout the district, exists:
67.21 	(1) parcels consisting of 70 percent of the area of the district are occupied by 
67.22 	buildings, streets, utilities, paved or gravel parking lots, or other similar structures and 
67.23 	more than 50 percent or more of the buildings, not including outbuildings, are structurally 
67.24 	substandard to a degree requiring substantial renovation or clearance;
67.25 	(2) the property consists of vacant, unused, underused, inappropriately used, or 
67.26 	infrequently used rail yards, rail storage facilities, or excessive or vacated railroad 
67.27 	rights-of-way;
67.28 	(3) tank facilities, or property whose immediately previous use was for tank 
67.29 	facilities, as defined in section 115C.02, subdivision 15, if the tank facilities:
67.30 	(i) have or had a capacity of more than 1,000,000 gallons;
67.31 	(ii) are located adjacent to rail facilities; and
67.32 	(iii) have been removed or are unused, underused, inappropriately used, or 
67.33 	infrequently used; or
67.34 	(4) a qualifying disaster area, as defined in subdivision 10b.
68.1 	(b) For purposes of this subdivision, "structurally substandard" shall mean 
68.2 	containing defects in structural elements or a combination of deficiencies in essential 
68.3 	utilities and facilities, light and ventilation, fire protection including adequate egress, 
68.4 	layout and condition of interior partitions, or similar factors, which defects or deficiencies 
68.5 	are of sufficient total significance to justify substantial renovation or clearance.
68.6 	(c) A building is not structurally substandard if it is in compliance with the building 
68.7 	code applicable to new buildings or could be modified to satisfy the building code at 
68.8 	a cost of less than 15 percent of the cost of constructing a new structure of the same 
68.9 	square footage and type on the site. The municipality may find that a building is not 
68.10 	disqualified as structurally substandard under the preceding sentence on the basis of 
68.11 	reasonably available evidence, such as the size, type, and age of the building, the average 
68.12 	cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. The 
68.13 	municipality may not make such a determination without an interior inspection of the 
68.14 	property, but need not have an independent, expert appraisal prepared of the cost of repair 
68.15 	and rehabilitation of the building. An interior inspection of the property is not required, 
68.16 	if the municipality finds that (1) the municipality or authority is unable to gain access to 
68.17 	the property after using its best efforts to obtain permission from the party that owns or 
68.18 	controls the property; and (2) the evidence otherwise supports a reasonable conclusion that 
68.19 	the building is structurally substandard. Items of evidence that support such a conclusion 
68.20 	include recent fire or police inspections, on-site property tax appraisals or housing 
68.21 	inspections, exterior evidence of deterioration, or other similar reliable evidence. Written 
68.22 	documentation of the findings and reasons why an interior inspection was not conducted 
68.23 	must be made and retained under section 469.175, subdivision 3, clause (1). Failure of a 
68.24 	building to be disqualified under the provisions of this paragraph is a necessary, but not a 
68.25 	sufficient, condition to determining that the building is substandard.
68.26 	(d) A parcel is deemed to be occupied by a structurally substandard building 
68.27 	for purposes of the finding under paragraph (a) or by the improvements described in 
68.28 	paragraph (e) if all of the following conditions are met:
68.29 	(1) the parcel was occupied by a substandard building or met the requirements 
68.30 	of paragraph (e), as the case may be, within three years of the filing of the request for 
68.31 	certification of the parcel as part of the district with the county auditor;
68.32 	(2) the substandard building or the improvements described in paragraph (e) were 
68.33 	demolished or removed by the authority or the demolition or removal was financed by the 
68.34 	authority or was done by a developer under a development agreement with the authority;
68.35 	(3) the authority found by resolution before the demolition or removal that the 
68.36 	parcel was occupied by a structurally substandard building or met the requirements of 
69.1 	paragraph (e) and that after demolition and clearance the authority intended to include 
69.2 	the parcel within a district; and
69.3 	(4) upon filing the request for certification of the tax capacity of the parcel as part 
69.4 	of a district, the authority notifies the county auditor that the original tax capacity of the 
69.5 	parcel must be adjusted as provided by section 469.177, subdivision 1, paragraph (f).
69.6 	(e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, 
69.7 	utilities, paved or gravel parking lots, or other similar structures unless 15 percent of the 
69.8 	area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or 
69.9 	other similar structures.
69.10 	(f) For districts consisting of two or more noncontiguous areas, each area must 
69.11 	qualify as a redevelopment district under paragraph (a) to be included in the district, and 
69.12 	the entire area of the district must satisfy paragraph (a).

69.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

69.14 	Sec. 3. Minnesota Statutes 2010, section 469.174, is amended by adding a subdivision 
69.15 	to read:
69.16 		Subd. 19a.Soil deficiency district. "Soil deficiency district" means a type of tax 
69.17 	increment financing district consisting of a project, or portions of a project, within which 
69.18 	the authority finds by resolution that the following conditions exist:
69.19 	(1) parcels consisting of 70 percent of the area of the district contain unusual terrain 
69.20 	or soil deficiencies which require substantial filling, grading, or other physical preparation 
69.21 	for use and a parcel is eligible for inclusion if at least 50 percent of the area of the parcel 
69.22 	requires substantial filling, grading, or other physical preparation for use; and
69.23 	(2) the estimated cost of the physical preparation under clause (1), but excluding 
69.24 	costs directly related to roads as defined in section 160.01, and local improvements as 
69.25 	described in sections 429.021, subdivision 1, clauses (1) to (7), (11), and (12), and 430.01, 
69.26 	exceeds the fair market value of the land before completion of the preparation.

69.27 	EFFECTIVE DATE. This section is effective for districts for which the request for 
69.28 	certification is made after April 30, 2012.

69.29 	Sec. 4. Minnesota Statutes 2010, section 469.174, is amended by adding a subdivision 
69.30 	to read:
69.31 		Subd. 30.Mining reclamation project area. (a) An authority may designate an 
69.32 	area within its jurisdiction as a mining reclamation project area by finding by resolution, 
70.1 	that parcels consisting of at least 70 percent of the acreage, excluding street and railroad 
70.2 	rights-of-way, are characterized by one or more of the following conditions:
70.3 	(1) peat or other soils with geotechnical deficiencies that impair development of 
70.4 	buildings or infrastructure;
70.5 	(2) soils or terrain that requires substantial filling in order to permit the development 
70.6 	of buildings or infrastructure;
70.7 	(3) landfills, dumps, or similar deposits of municipal or private waste;
70.8 	(4) quarries or similar resource extraction sites;
70.9 	(5) floodway; and
70.10 	(6) substandard buildings, within the meaning of section 469.174, subdivision 10.
70.11 	(b) For the purposes of paragraph (a), clauses (1) to (5), a parcel is characterized by 
70.12 	the relevant condition if at least 50 percent of the area of the parcel contains the relevant 
70.13 	condition. For the purposes of paragraph (a), clause (6), a parcel is characterized by 
70.14 	substandard buildings if substandard buildings occupy at least 30 percent of the area 
70.15 	of the parcel.

70.16 	EFFECTIVE DATE. This section is effective for districts for which the request for 
70.17 	certification is made after April 30, 2012.

70.18 	Sec. 5. Minnesota Statutes 2010, section 469.175, subdivision 3, is amended to read:
70.19 		Subd. 3.Municipality approval. (a) A county auditor shall not certify the original 
70.20 	net tax capacity of a tax increment financing district until the tax increment financing plan 
70.21 	proposed for that district has been approved by the municipality in which the district 
70.22 	is located. If an authority that proposes to establish a tax increment financing district 
70.23 	and the municipality are not the same, the authority shall apply to the municipality in 
70.24 	which the district is proposed to be located and shall obtain the approval of its tax 
70.25 	increment financing plan by the municipality before the authority may use tax increment 
70.26 	financing. The municipality shall approve the tax increment financing plan only after a 
70.27 	public hearing thereon after published notice in a newspaper of general circulation in the 
70.28 	municipality at least once not less than ten days nor more than 30 days prior to the date 
70.29 	of the hearing. The published notice must include a map of the area of the district from 
70.30 	which increments may be collected and, if the project area includes additional area, a map 
70.31 	of the project area in which the increments may be expended. The hearing may be held 
70.32 	before or after the approval or creation of the project or it may be held in conjunction with 
70.33 	a hearing to approve the project.
71.1 	(b) Before or at the time of approval of the tax increment financing plan, the 
71.2 	municipality shall make the following findings, and shall set forth in writing the reasons 
71.3 	and supporting facts for each determination:
71.4 	(1) that the proposed tax increment financing district is a redevelopment district, a 
71.5 	renewal or renovation district, a housing district, a soils condition district, soil deficiency 
71.6 	district, or an economic development district; if the proposed district is a redevelopment 
71.7 	district or a renewal or renovation district, the reasons and supporting facts for the 
71.8 	determination that the district meets the criteria of section 469.174, subdivision 10, 
71.9 	paragraph (a), clauses (1) and (2), or subdivision 10a, must be documented in writing 
71.10 	and retained and made available to the public by the authority until the district has been 
71.11 	terminated;
71.12 	(2) that, in the opinion of the municipality:
71.13 	(i) the proposed development or redevelopment would not reasonably be expected to 
71.14 	occur solely through private investment within the reasonably foreseeable future; and
71.15 	(ii) the increased market value of the site that could reasonably be expected to occur 
71.16 	without the use of tax increment financing would be less than the increase in the market 
71.17 	value estimated to result from the proposed development after subtracting the present 
71.18 	value of the projected tax increments for the maximum duration of the district permitted 
71.19 	by the plan. The requirements of this item do not apply if the district is a housing district;
71.20 	(3) that the tax increment financing plan conforms to the general plan for the 
71.21 	development or redevelopment of the municipality as a whole;
71.22 	(4) that the tax increment financing plan will afford maximum opportunity, 
71.23 	consistent with the sound needs of the municipality as a whole, for the development or 
71.24 	redevelopment of the project by private enterprise;
71.25 	(5) that the municipality elects the method of tax increment computation set forth in 
71.26 	section 469.177, subdivision 3, paragraph (b), if applicable; and
71.27 	(6) that for a redevelopment district, renewal and renovation district, soils condition 
71.28 	district, or soil deficiency district established by the authority in a mining reclamation 
71.29 	project area, the reasons and supporting facts for the determination that the mining 
71.30 	reclamation project area meets the requirements under section 469.174, subdivision 30, 
71.31 	must be documented in writing and retained and made available to the public by the 
71.32 	authority until two years after the district is decertified. These findings must have been 
71.33 	made and documented no more than ten years before approval of the tax increment 
71.34 	financing plan for the district.
71.35 	(c) When the municipality and the authority are not the same, the municipality shall 
71.36 	approve or disapprove the tax increment financing plan within 60 days of submission by 
72.1 	the authority. When the municipality and the authority are not the same, the municipality 
72.2 	may not amend or modify a tax increment financing plan except as proposed by the 
72.3 	authority pursuant to subdivision 4. Once approved, the determination of the authority 
72.4 	to undertake the project through the use of tax increment financing and the resolution of 
72.5 	the governing body shall be conclusive of the findings therein and of the public need for 
72.6 	the financing.
72.7 	(d) For a district that is subject to the requirements of paragraph (b), clause (2), 
72.8 	item (ii), the municipality's statement of reasons and supporting facts must include all of 
72.9 	the following:
72.10 	(1) an estimate of the amount by which the market value of the site will increase 
72.11 	without the use of tax increment financing;
72.12 	(2) an estimate of the increase in the market value that will result from the 
72.13 	development or redevelopment to be assisted with tax increment financing; and
72.14 	(3) the present value of the projected tax increments for the maximum duration of 
72.15 	the district permitted by the tax increment financing plan.
72.16 	(e) For purposes of this subdivision, "site" means the parcels on which the 
72.17 	development or redevelopment to be assisted with tax increment financing will be located.

72.18 	EFFECTIVE DATE. This section is effective for districts for which the request for 
72.19 	certification is made after April 30, 2012.

72.20 	Sec. 6. Minnesota Statutes 2010, section 469.176, subdivision 1b, is amended to read:
72.21 		Subd. 1b.Duration limits; terms. (a) No tax increment shall in any event be 
72.22 	paid to the authority:
72.23 	(1) after 15 years after receipt by the authority of the first increment for a renewal 
72.24 	and renovation district;
72.25 	(2) after 20 years after receipt by the authority of the first increment for a soils 
72.26 	condition district or a soil deficiency district;
72.27 	(3) after eight years after receipt by the authority of the first increment for an 
72.28 	economic development district;
72.29 	(4) for a housing district, a compact development district, or a redevelopment 
72.30 	district, after 25 years from the date of receipt by the authority of the first increment.
72.31 	(b) For purposes of determining a duration limit under this subdivision or subdivision 
72.32 	1e that is based on the receipt of an increment, any increments from taxes payable in 
72.33 	the year in which the district terminates shall be paid to the authority. This paragraph 
72.34 	does not affect a duration limit calculated from the date of approval of the tax increment 
72.35 	financing plan or based on the recovery of costs or to a duration limit under subdivision 
73.1 	1c. This paragraph does not supersede the restrictions on payment of delinquent taxes in 
73.2 	subdivision 1f.
73.3 	(c) An action by the authority to waive or decline to accept an increment has no 
73.4 	effect for purposes of computing a duration limit based on the receipt of increment under 
73.5 	this subdivision or any other provision of law. The authority is deemed to have received an 
73.6 	increment for any year in which it waived or declined to accept an increment, regardless 
73.7 	of whether the increment was paid to the authority.
73.8 	(d) Receipt by a hazardous substance subdistrict of an increment as a result of a 
73.9 	reduction in original net tax capacity under section 469.174, subdivision 7, paragraph 
73.10 	(b), does not constitute receipt of increment by the overlying district for the purpose of 
73.11 	calculating the duration limit under this section.

73.12 	EFFECTIVE DATE. This section is effective for districts for which the request for 
73.13 	certification is made after April 30, 2012.

73.14 	Sec. 7. Minnesota Statutes 2010, section 469.176, subdivision 4b, is amended to read:
73.15 		Subd. 4b.Soils condition districts. Revenue derived from Tax increment from a 
73.16 	soils condition district may be used only to (1) acquire parcels on which the improvements 
73.17 	described in clause (2) will occur; (2) pay for the cost of removal or remedial action; and 
73.18 	(3) pay for the administrative expenses of the authority allocable to the district, including 
73.19 	the cost of preparation of the development action response plan. For a soils condition 
73.20 	district located in a mining reclamation project area, tax increments may also be expended 
73.21 	on the additional cost of public improvements directly caused by the removal or remedial 
73.22 	action and located within the mining reclamation project area.

73.23 	EFFECTIVE DATE. This section is effective for districts for which the request for 
73.24 	certification is made after April 30, 2012.

73.25 	Sec. 8. Minnesota Statutes 2011 Supplement, section 469.176, subdivision 4c, is 
73.26 	amended to read:
73.27 		Subd. 4c.Economic development districts. (a) Revenue derived from tax 
73.28 	increment from an economic development district may not be used to provide 
73.29 	improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form 
73.30 	to developments consisting of buildings and ancillary facilities, if more than 15 percent 
73.31 	of the buildings and facilities (determined on the basis of square footage) are used for a 
73.32 	purpose other than:
74.1 	(1) the manufacturing or production of tangible personal property, including 
74.2 	processing resulting in the change in condition of the property;
74.3 	(2) warehousing, storage, and distribution of tangible personal property, excluding 
74.4 	retail sales;
74.5 	(3) research and development related to the activities listed in clause (1) or (2);
74.6 	(4) telemarketing if that activity is the exclusive use of the property;
74.7 	(5) tourism facilities;
74.8 	(6) qualified border retail facilities; or
74.9 	(7) space necessary for and related to the activities listed in clauses (1) to (6).
74.10 	(b) Notwithstanding the provisions of this subdivision, revenues derived from tax 
74.11 	increment from an economic development district may be used to provide improvements, 
74.12 	loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000 
74.13 	square feet of any separately owned commercial facility located within the municipal 
74.14 	jurisdiction of a small city, if the revenues derived from increments are spent only to 
74.15 	assist the facility directly or for administrative expenses, the assistance is necessary to 
74.16 	develop the facility, and all of the increments, except those for administrative expenses, 
74.17 	are spent only for activities within the district.
74.18 	(c) A city is a small city for purposes of this subdivision if the city was a small city 
74.19 	in the year in which the request for certification was made and applies for the rest of 
74.20 	the duration of the district, regardless of whether the city qualifies or ceases to qualify 
74.21 	as a small city.
74.22 	(d) Notwithstanding the requirements of paragraph (a) and the finding requirements 
74.23 	of section 469.174, subdivision 12, tax increments from an economic development district 
74.24 	may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or 
74.25 	assistance in any form to developments consisting of buildings and ancillary facilities, if 
74.26 	all the following conditions are met:
74.27 	(1) the municipality finds that the project will create or retain jobs in this state, 
74.28 	including construction jobs, and that construction of the project would not have 
74.29 	commenced before July 1, 2012 January 1, 2014, without the authority providing 
74.30 	assistance under the provisions of this paragraph;
74.31 	(2) construction of the project begins no later than July 1, 2012 January 1, 2014;
74.32 	(3) the request for certification of the district is made no later than June 30, 2012
74.33 	December 31, 2013; and
74.34 	(4) for development of housing under this paragraph, the construction must begin 
74.35 	before January 1, 2012.
75.1 	The provisions of this paragraph may not be used to assist housing that is developed 
75.2 	to qualify under section 469.1761, subdivision 2 or 3, or similar requirements of other law, 
75.3 	if construction of the project begins later than July 1, 2011.

75.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

75.5 	Sec. 9. Minnesota Statutes 2011 Supplement, section 469.176, subdivision 4m, is 
75.6 	amended to read:
75.7 		Subd. 4m.Temporary authority to stimulate construction. (a) Notwithstanding 
75.8 	the restrictions in any other subdivision of this section or any other law to the contrary, 
75.9 	except the requirement to pay bonds to which the increments are pledged and the 
75.10 	provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or 
75.11 	more of the following purposes:
75.12 	(1) to provide improvements, loans, interest rate subsidies, or assistance in any 
75.13 	form to private development consisting of the construction or substantial rehabilitation of 
75.14 	buildings and ancillary facilities, if doing so will create or retain jobs in this state, including 
75.15 	construction jobs, and that the construction commences before July 1, 2012 January 1, 
75.16 	2014, and would not have commenced before that date without the assistance; or
75.17 	(2) to make an equity or similar investment in a corporation, partnership, or limited 
75.18 	liability company that the authority determines is necessary to make construction of a 
75.19 	development that meets the requirements of clause (1) financially feasible.
75.20 	(b) The authority may undertake actions under the authority of this subdivision only 
75.21 	after approval by the municipality of a written spending plan that specifically authorizes 
75.22 	the authority to take the actions. The municipality shall approve the spending plan only 
75.23 	after a public hearing after published notice in a newspaper of general circulation in 
75.24 	the municipality at least once, not less than ten days nor more than 30 days prior to the 
75.25 	date of the hearing.
75.26 	(c) The authority to spend tax increments under this subdivision expires December 
75.27 	31, 2012 June 30, 2014.
75.28 	(d) For a development consisting of housing, the authority to spend tax increments 
75.29 	under this subdivision expires December 31, 2011, and construction must commence 
75.30 	before July 1, 2011, except the authority to spend tax increments on market rate housing 
75.31 	developments under this subdivision expires July 31, 2012, and construction must 
75.32 	commence before January 1, 2012.

76.1 	EFFECTIVE DATE. This section is effective the day following final enactment 
76.2 	and applies to all tax increment financing districts, regardless of when the request for 
76.3 	certification was made.

76.4 	Sec. 10. Minnesota Statutes 2010, section 469.176, is amended by adding a subdivision 
76.5 	to read:
76.6 		Subd. 4n.Soil deficiency district. Tax increments from a soil deficiency district 
76.7 	may only be used to pay for the following costs for activities located within the mining 
76.8 	reclamation project area:
76.9 	(1) acquisition of parcels on which the improvements described in clause (2) will 
76.10 	occur;
76.11 	(2) the cost of correcting the unusual terrain or soil deficiencies and the additional 
76.12 	cost of installing public improvements directly caused by the deficiencies;
76.13 	(3) administrative expenses of the authority allocable to the district; and
76.14 	(4) costs described in subdivision 4j for the district, if these payments do not exceed 
76.15 	25 percent of the tax increment from the district.

76.16 	EFFECTIVE DATE. This section is effective for districts for which the request for 
76.17 	certification is made after April 30, 2012.

76.18 	Sec. 11. Minnesota Statutes 2011 Supplement, section 469.1763, subdivision 2, 
76.19 	is amended to read:
76.20 		Subd. 2.Expenditures outside district. (a) For each tax increment financing 
76.21 	district, an amount equal to at least 75 percent of the total revenue derived from tax 
76.22 	increments paid by properties in the district must be expended on activities in the district 
76.23 	or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities 
76.24 	in the district or to pay, or secure payment of, debt service on credit enhanced bonds. 
76.25 	For districts, other than redevelopment districts for which the request for certification 
76.26 	was made after June 30, 1995, the in-district percentage for purposes of the preceding 
76.27 	sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax 
76.28 	increments paid by properties in the district may be expended, through a development fund 
76.29 	or otherwise, on activities outside of the district but within the defined geographic area of 
76.30 	the project except to pay, or secure payment of, debt service on credit enhanced bonds. 
76.31 	For districts, other than redevelopment districts for which the request for certification was 
76.32 	made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is 
76.33 	20 percent. The revenue derived from tax increments for the district that are expended on 
77.1 	costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before 
77.2 	calculating the percentages that must be expended within and without the district.
77.3 	(b) In the case of a housing district, a housing project, as defined in section 469.174, 
77.4 	subdivision 11, is an activity in the district.
77.5 	(c) All administrative expenses are for activities outside of the district, except that 
77.6 	if the only expenses for activities outside of the district under this subdivision are for 
77.7 	the purposes described in paragraph (d), administrative expenses will be considered as 
77.8 	expenditures for activities in the district.
77.9 	(d) The authority may elect, in the tax increment financing plan for the district, 
77.10 	to increase by up to ten percentage points the permitted amount of expenditures for 
77.11 	activities located outside the geographic area of the district under paragraph (a). As 
77.12 	permitted by section 469.176, subdivision 4k, the expenditures, including the permitted 
77.13 	expenditures under paragraph (a), need not be made within the geographic area of the 
77.14 	project. Expenditures that meet the requirements of this paragraph are legally permitted 
77.15 	expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, 4d, and 
77.16 	4j. To qualify for the increase under this paragraph, the expenditures must:
77.17 	(1) be used exclusively to assist housing that
77.18 	(i) meets the requirement for a qualified low-income building, as that term is used in 
77.19 	section 42 of the Internal Revenue Code; and
77.20 	(2) (ii) does not exceed the qualified basis of the housing, as defined under section 
77.21 	42(c) of the Internal Revenue Code, less the amount of any credit allowed under section 
77.22 	42 of the Internal Revenue Code; and
77.23 	(3) be (iii) is used to:
77.24 	(i) (A) acquire and prepare the site of the housing;
77.25 	(ii) (B) acquire, construct, or rehabilitate the housing; or
77.26 	(iii) (C) make public improvements directly related to the housing; or
77.27 	(4) (2) be used to develop housing:
77.28 	(i) if the market value of the housing  prior to demolition or rehabilitation does 
77.29 	not exceed the lesser of:
77.30 	(A) 150 percent of the average market value of single-family homes in that 
77.31 	municipality; or
77.32 	(B) $200,000 for municipalities located in the metropolitan area, as defined in 
77.33 	section 473.121, or $125,000 for all other municipalities; and
77.34 	(ii) if the expenditures are used to pay the cost of site acquisition, relocation, 
77.35 	demolition of existing structures, site preparation, rehabilitation, and pollution abatement 
77.36 	on one or more parcels, if provided that the parcel contains a residence containing is 
78.1 	occupied by one to four family dwelling units that has been vacant for six or more months 
78.2 	and is in foreclosure as defined in section 325N.10, subdivision 7, but without regard to 
78.3 	whether the residence is the owner's principal residence, and only after the redemption 
78.4 	period stated in the notice provided under section 580.06 has expired with respect to which 
78.5 	a mortgage was foreclosed under chapter 580, 581, or 582; any applicable redemption 
78.6 	period has expired without redemption; and the authority or developer enters into a 
78.7 	purchase agreement to acquire the parcel no earlier than 30 days after expiration of the 
78.8 	redemption period.
78.9 	(e) For a district created within a biotechnology and health sciences industry zone 
78.10 	as defined in section 469.330, subdivision 6, or for an existing district located within 
78.11 	such a zone, tax increment derived from such a district may be expended outside of the 
78.12 	district but within the zone only for expenditures required for the construction of public 
78.13 	infrastructure necessary to support the activities of the zone, land acquisition, and other 
78.14 	redevelopment costs as defined in section 469.176, subdivision 4j. These expenditures are 
78.15 	considered as expenditures for activities within the district.
78.16 	(f) The authority under paragraph (d), clause (4) (2), expires on December 31, 2016. 
78.17 	Increments may continue to be expended under this authority after that date, if they are 
78.18 	used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph 
78.19 	(a), if December 31, 2016, is considered to be the last date of the five-year period after 
78.20 	certification under that provision.
78.21 	(g) The authority may elect, in the tax increment financing plan, for a district located 
78.22 	in a mining reclamation area that "activities within the district" under paragraph (a) 
78.23 	includes activities within the geographic area of the mining reclamation area.

78.24 	EFFECTIVE DATE. This section is effective for any district that is subject to 
78.25 	the provisions of Minnesota Statutes, section 469.1763, regardless of when the request 
78.26 	for certification was made, except the amendment adding paragraph (g) is effective for 
78.27 	districts for which the request for certification was made after April 30, 2012.

78.28 	Sec. 12. Minnesota Statutes 2010, section 469.1763, subdivision 3, is amended to read:
78.29 		Subd. 3.Five-year rule. (a) Revenues derived from tax increments are considered 
78.30 	to have been expended on an activity within the district under subdivision 2 only if one 
78.31 	of the following occurs:
78.32 	(1) before or within five years after certification of the district, the revenues are 
78.33 	actually paid to a third party with respect to the activity;
78.34 	(2) bonds, the proceeds of which must be used to finance the activity, are issued and 
78.35 	sold to a third party before or within five years after certification, the revenues are spent 
79.1 	to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, 
79.2 	reasonably expected to be spent before the end of the later of (i) the five-year period, or 
79.3 	(ii) a reasonable temporary period within the meaning of the use of that term under section 
79.4 	148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve 
79.5 	or replacement fund;
79.6 	(3) binding contracts with a third party are entered into for performance of the 
79.7 	activity before or within five years after certification of the district and the revenues are 
79.8 	spent under the contractual obligation;
79.9 	(4) costs with respect to the activity are paid before or within five years after 
79.10 	certification of the district and the revenues are spent to reimburse a party for payment 
79.11 	of the costs, including interest on unreimbursed costs; or
79.12 	(5) expenditures are made for housing purposes as permitted by subdivision 2, 
79.13 	paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted 
79.14 	by subdivision 2, paragraph (e).
79.15 	(b) For purposes of this subdivision, bonds include subsequent refunding bonds if 
79.16 	the original refunded bonds meet the requirements of paragraph (a), clause (2).
79.17 	(c) For a redevelopment district or a renewal and renovation district certified after 
79.18 	June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph 
79.19 	(a) are extended to ten years after certification of the district. This extension is provided 
79.20 	primarily to accommodate delays in development activities due to unanticipated economic 
79.21 	circumstances.
79.22 	(d) If the authority so elects in the tax increment financing plan for a redevelopment 
79.23 	district, renewal and renovation district, soils condition district, or soil deficiency district 
79.24 	located in a mining reclamation project area, the five-year periods described in paragraph 
79.25 	(a) do not apply.

79.26 	EFFECTIVE DATE. This section is effective for districts for which the request for 
79.27 	certification is made after April 30, 2012.

79.28 	Sec. 13. Minnesota Statutes 2010, section 469.1763, subdivision 4, is amended to read:
79.29 		Subd. 4.Use of revenues for decertification. (a) In each year beginning with the 
79.30 	sixth year following certification of the district, if the applicable in-district percent of the 
79.31 	revenues derived from tax increments paid by properties in the district exceeds the amount 
79.32 	of expenditures that have been made for costs permitted under subdivision 3, an amount 
79.33 	equal to the difference between the in-district percent of the revenues derived from tax 
79.34 	increments paid by properties in the district and the amount of expenditures that have 
80.1 	been made for costs permitted under subdivision 3 must be used and only used to pay or 
80.2 	defease the following or be set aside to pay the following:
80.3 	(1) outstanding bonds, as defined in subdivision 3, paragraphs (a), clause (2), and (b);
80.4 	(2) contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4);
80.5 	(3) credit enhanced bonds to which the revenues derived from tax increments are 
80.6 	pledged, but only to the extent that revenues of the district for which the credit enhanced 
80.7 	bonds were issued are insufficient to pay the bonds and to the extent that the increments 
80.8 	from the applicable pooling percent share for the district are insufficient; or
80.9 	(4) the amount provided by the tax increment financing plan to be paid under 
80.10 	subdivision 2, paragraphs (b), (d), and (e).
80.11 	(b) The district must be decertified and the pledge of tax increment discharged 
80.12 	when the outstanding bonds have been defeased and when sufficient money has been set 
80.13 	aside to pay, based on the increment to be collected through the end of the calendar year, 
80.14 	the following amounts:
80.15 	(1) contractual obligations as defined in subdivision 3, paragraph (a), clauses (3) 
80.16 	and (4);
80.17 	(2) the amount specified in the tax increment financing plan for activities qualifying 
80.18 	under subdivision 2, paragraph (b), that have not been funded with the proceeds of bonds 
80.19 	qualifying under paragraph (a), clause (1); and
80.20 	(3) the additional expenditures permitted by the tax increment financing plan for 
80.21 	housing activities under an election under subdivision 2, paragraph (d), that have not been 
80.22 	funded with the proceeds of bonds qualifying under paragraph (a), clause (1).
80.23 	(c) If the authority so elects in the tax increment financing plan for a redevelopment 
80.24 	district, renewal and renovation district, soils condition district, or soil deficiency district 
80.25 	located in a mining reclamation project area, the provisions of this section do not apply.

80.26 	EFFECTIVE DATE. This section is effective for districts for which the request for 
80.27 	certification is made after April 30, 2012.

80.28 	Sec. 14. Laws 2008, chapter 366, article 5, section 34, as amended by Laws 2009, 
80.29 	chapter 88, article 5, section 11, is amended to read:
80.30 	Sec. 34. CITY OF OAKDALE; ORIGINAL TAX CAPACITY. 
 80.31 		Subdivision 1.Original tax capacity election. (a) The provisions of this section 
80.32 	apply to redevelopment tax increment financing districts created by the Housing and 
80.33 	Redevelopment Authority in and for the city of Oakdale in the areas comprised of 
80.34 	the parcels with the following parcel identification numbers: (1) 3102921320053; 
80.35 	3102921320054; 3102921320055; 3102921320056; 3102921320057; 3102921320058; 
81.1 	3102921320062; 3102921320063; 3102921320059; 3102921320060; 3102921320061; 
81.2 	3102921330005; and 3102921330004; and (2) 2902921330001 and 2902921330005.
81.3 	(b) For a district subject to this section, the Housing and Redevelopment Authority 
81.4 	may, when requesting certification of the original tax capacity of the district under 
81.5 	Minnesota Statutes, section 469.177, elect to have the original tax capacity of the district 
81.6 	be certified as the tax capacity of the land.
81.7 	(c) The authority to request certification of a district under this section expires on 
81.8 	July 1, 2013 December 31, 2017.
81.9 		Subd. 2.Parcels deemed occupied. (a) Parcel numbers 3102921320054, 
81.10 	3102921320055, 3102921320056, 3102921320057, 3102921320061, and 3102921330004 
81.11 	are deemed to meet the requirements of Minnesota Statutes, section 469.174, subdivision 
81.12 	10, paragraph (d), notwithstanding any contrary provisions of that paragraph, if the 
81.13 	following conditions are met:
81.14 	(1) a building located on any part of each of the specified parcels was demolished 
81.15 	after the authority adopted a resolution under Minnesota Statutes, section 469.174, 
81.16 	subdivision 10, paragraph (d), clause (3);
81.17 	(2) the building was removed either by the authority, by a developer under a 
81.18 	development agreement with the authority, or by the owner of the property without 
81.19 	entering into a development agreement with the authority; and
81.20 	(3) the request for certification of the parcel as part of a district is filed with the 
81.21 	county auditor by December 31, 2017.
81.22 	(b) The provisions of subdivision 1 apply to allow an election by the authority 
81.23 	for the parcels deemed occupied under paragraph (a), notwithstanding the provisions 
81.24 	of Minnesota Statutes, sections 469.174, subdivision 10, paragraph (d), and 469.177, 
81.25 	subdivision 1, paragraph (f).

81.26 	EFFECTIVE DATE. This section is effective upon compliance by the governing 
81.27 	body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021, 
81.28 	subdivision 3.

81.29 	Sec. 15. CITY OF BLOOMINGTON; TAX INCREMENT FINANCING.
 81.30 	Notwithstanding Minnesota Statutes, section 469.176, or Laws 1996, chapter 464, 
81.31 	article 1, section 8, or any other law to the contrary, the city of Bloomington and its port 
81.32 	authority may extend the duration limits of tax increment financing district No. 1-G, 
81.33 	containing the former Met Center property, including Lindau Lane and that portion of tax 
81.34 	increment financing district No. 1-C north of the existing building line on Lot 1, Block 1, 
81.35 	Mall of America 7th Addition, exclusive of Lots 2 and 3, through December 31, 2038.

82.1 	EFFECTIVE DATE. This section is effective upon compliance of the governing 
82.2 	bodies of the city of Bloomington, Hennepin County, and Independent School District 
82.3 	No. 271, Bloomington, with the requirements of Minnesota Statutes, sections 469.1782, 
82.4 	subdivision 2, and 645.021, subdivision 3.

82.5 	Sec. 16. CITY OF BLOOMINGTON; TAX INCREMENT FINANCING 
82.6 	EXTENSION.
 82.7 	Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any other 
82.8 	law to the contrary, the city of Bloomington and its port authority may extend the duration 
82.9 	limits of Tax Increment Financing District No. 1-I, containing the Bloomington Central 
82.10 	Station property for a period through December 31, 2038.

82.11 	EFFECTIVE DATE. This section is effective upon compliance of the governing 
82.12 	body of the city of Bloomington with the requirements of Minnesota Statutes, sections 
82.13 	469.1782, subdivision 2, and 645.021, subdivision 3.

82.14 	Sec. 17. DAKOTA COUNTY COMMUNITY DEVELOPMENT AUTHORITY; 
82.15 	TAX INCREMENT FINANCING DISTRICT.
 82.16 		Subdivision 1.Authorization. Notwithstanding the provisions of any other law, 
82.17 	the Dakota County Community Development Authority may establish a redevelopment 
82.18 	tax increment financing district comprised of the properties that (1) were included in the 
82.19 	CDA 10 Robert and South Street district in the city of West St. Paul, and (2) were not 
82.20 	decertified before July 1, 2012. The district created under this section terminates no later 
82.21 	than December 31, 2027.
82.22 		Subd. 2.Special rules. The requirements for qualifying a redevelopment district 
82.23 	under Minnesota Statutes, section 469.174, subdivision 10, do not apply to parcels located 
82.24 	within the district. Minnesota Statutes, section 469.176, subdivisions 4g, paragraph (c), 
82.25 	clause (1), item (ii), 4j, and 4l, do not apply to the district. The original tax capacity 
82.26 	of the district is $93,239.
82.27 		Subd. 3.Authorized expenditures. Tax increment from the district may be 
82.28 	expended to pay for any eligible activities authorized by Minnesota Statutes, chapter 
82.29 	469, within the redevelopment area that includes the district. All such expenditures are 
82.30 	deemed to be activities within the district under Minnesota Statutes, section 469.1763, 
82.31 	subdivisions 2, 3, and 4.
82.32 		Subd. 4.Adjusted net tax capacity. The captured tax capacity of the district must 
82.33 	be included in the adjusted net tax capacity of the city, county, and school district for the 
82.34 	purposes of determining local government aid, education aid, and county program aid. 
83.1 	The county auditor shall report to the commissioner of revenue the amount of the captured 
83.2 	tax capacity for the district at the time the assessment abstracts are filed.

83.3 	EFFECTIVE DATE. This section is effective upon compliance by the governing 
83.4 	body of the Dakota County Community Development Authority with the requirements of 
83.5 	Minnesota Statutes, section 645.021, subdivision 3.

83.6 	Sec. 18. CITY OF BROOKLYN PARK; TAX INCREMENT FINANCING; 
83.7 	SPECIAL RULES.
 83.8 	The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that 
83.9 	activities must be undertaken within a five-year period from the date of certification of a tax 
83.10 	increment financing district, is considered to be met for Tax Increment Financing District 
83.11 	No. 23 in the city of Brooklyn Park if the activities were undertaken by July 1, 2014.

83.12 	EFFECTIVE DATE. This section is effective upon compliance by the governing 
83.13 	body of the city of Brooklyn Park with the requirements of Minnesota Statutes, section 
83.14 	645.021, subdivision 3.

83.15 	ARTICLE 5
83.16 	ESTATE TAXES

83.17 	Section 1. Minnesota Statutes 2010, section 289A.10, is amended by adding a 
83.18 	subdivision to read:
83.19 		Subd. 1a.Recapture tax return required. If a disposition or cessation as provided 
83.20 	by section 291.03, subdivision 11, paragraph (a), has occurred, the qualified heir, as 
83.21 	defined under section 291.03, subdivision 8, paragraph (c), or personal representative of 
83.22 	the decedent's estate must submit a recapture tax return to the commissioner.

83.23 	EFFECTIVE DATE. This section is effective for estates of decedents dying after 
83.24 	June 30, 2011.

83.25 	Sec. 2. Minnesota Statutes 2010, section 289A.12, is amended by adding a subdivision 
83.26 	to read:
83.27 		Subd. 18.Returns by qualified heirs. Within 24 months and within 36 months 
83.28 	after a decedent's death, a qualified heir, as defined under section 291.03, subdivision 8, 
83.29 	paragraph (c), must file a return with the commissioner relating to the qualified property 
83.30 	received from the decedent.

84.1 	EFFECTIVE DATE. This section is effective for estates of decedents dying after 
84.2 	June 30, 2011.

84.3 	Sec. 3. Minnesota Statutes 2010, section 289A.18, is amended by adding a subdivision 
84.4 	to read:
84.5 		Subd. 3a.Recapture tax return. A recapture tax return is due within six months 
84.6 	after the date of the disposition or cessation as provided by section 291.03, subdivision 
84.7 	11, paragraph (a).

84.8 	EFFECTIVE DATE. This section is effective for estates of decedents dying after 
84.9 	June 30, 2011.

84.10 	Sec. 4. Minnesota Statutes 2010, section 289A.20, subdivision 3, is amended to read:
84.11 		Subd. 3.Estate tax. Taxes imposed by chapter 291 section 291.03, subdivision 1,
84.12 	take effect at and upon the death of the person whose estate is subject to taxation and are 
84.13 	due and payable on or before the expiration of nine months from that death.

84.14 	EFFECTIVE DATE. This section is effective for estates of decedents dying after 
84.15 	June 30, 2011.

84.16 	Sec. 5. Minnesota Statutes 2010, section 289A.20, is amended by adding a subdivision 
84.17 	to read:
84.18 		Subd. 3a.Recapture tax. Taxes imposed by section 291.03, subdivision 11, 
84.19 	paragraph (b), are due and payable on or before the expiration of six months from the date 
84.20 	of disposition or cessation as provided by section 291.03, subdivision 11, paragraph (a).

84.21 	EFFECTIVE DATE. This section is effective for estates of decedents dying after 
84.22 	June 30, 2011.

84.23 	Sec. 6. Minnesota Statutes 2011 Supplement, section 291.03, subdivision 8, is 
84.24 	amended to read:
84.25 		Subd. 8.Definitions. (a) For purposes of this section, the following terms have the 
84.26 	meanings given in this subdivision.
84.27 	(b) "Family member" means a family member as defined in section 2032A(e)(2) of 
84.28 	the Internal Revenue Code or a trust whose present beneficiaries are all family members as 
84.29 	defined in section 2032A(e)(2) of the Internal Revenue Code.
85.1 	(c) "Qualified heir" means a family member who acquired qualified property from
85.2 	upon the death of the decedent and satisfies the requirement under subdivision 9, clause 
85.3 	(6) (7), or subdivision 10, clause (4) (5), for the property.
85.4 	(d) "Qualified property" means qualified small business property under subdivision 
85.5 	9 and qualified farm property under subdivision 10.

85.6 	EFFECTIVE DATE. This section is effective for estates of decedents dying after 
85.7 	June 30, 2011.

85.8 	Sec. 7. Minnesota Statutes 2011 Supplement, section 291.03, subdivision 9, is 
85.9 	amended to read:
85.10 		Subd. 9.Qualified small business property. Property satisfying all of the following 
85.11 	requirements is qualified small business property:
85.12 	(1) The value of the property was included in the federal adjusted taxable estate.
85.13 	(2) The property consists of the assets of a trade or business or shares of stock or 
85.14 	other ownership interests in a corporation or other entity engaged in a trade or business. 
85.15 	The decedent or the decedent's spouse must have materially participated in the trade or 
85.16 	business within the meaning of section 469 of the Internal Revenue Code during the 
85.17 	taxable year that ended before the date of the decedent's death. Shares of stock in a 
85.18 	corporation or an ownership interest in another type of entity do not qualify under this 
85.19 	subdivision if the shares or ownership interests are traded on a public stock exchange at 
85.20 	any time during the three-year period ending on the decedent's date of death. For purposes 
85.21 	of this subdivision, an ownership interest includes the interest the decedent is deemed to 
85.22 	own under sections 2036, 2037, and 2038 of the Internal Revenue Code.
85.23 	(3) During the decedent's taxable year that ended before the decedent's death, the 
85.24 	trade or business must not have been a passive activity within the meaning of section 
85.25 	469(c) of the Internal Revenue Code and the decedent or the decedent's spouse must have 
85.26 	materially participated in the trade or business within the meaning of section 469(h) of the 
85.27 	Internal Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and 
85.28 	any other provision provided by Treasury Department regulation that substitutes material 
85.29 	participation in prior taxable years for material participation in the taxable year that ended 
85.30 	before the decedent's death.
85.31 	(3) (4) The gross annual sales of the trade or business were $10,000,000 or less for 
85.32 	the last taxable year that ended before the date of the death of the decedent.
85.33 	(4) (5) The property does not consist of cash or, cash equivalents, publicly traded 
85.34 	securities, or assets not used in the operation of the trade or business. For property 
85.35 	consisting of shares of stock or other ownership interests in an entity, the amount value of 
86.1 	cash or, cash equivalents, publicly traded securities, or assets not used in the operation of 
86.2 	the trade or business held by the corporation or other entity must be deducted from the 
86.3 	value of the property qualifying under this subdivision in proportion to the decedent's 
86.4 	share of ownership of the entity on the date of death.
86.5 	(5) (6) The decedent continuously owned the property, including property the 
86.6 	decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue 
86.7 	Code, for the three-year period ending on the date of death of the decedent. In the case of 
86.8 	a sole proprietor, if the property replaced similar property within the three-year period, 
86.9 	the replacement property will be treated as having been owned for the three-year period 
86.10 	ending on the date of death of the decedent.
86.11 	(6) A family member continuously uses the property in the operation of the trade or 
86.12 	business for three years following the date of death of the decedent.
86.13 	(7) For three years following the date of death of the decedent, the trade or business 
86.14 	is not a passive activity within the meaning of section 469(c) of the Internal Revenue 
86.15 	Code and a family member materially participates in the operation of the trade or business 
86.16 	within the meaning of section 469(h) of the Internal Revenue Code, excluding section 
86.17 	469(h)(3) of the Internal Revenue Code and any other provision provided by Treasury 
86.18 	Department regulation that substitutes material participation in prior taxable years for 
86.19 	material participation in the three years following the date of death of the decedent.
86.20 	(7) (8) The estate and the qualified heir elect to treat the property as qualified small 
86.21 	business property and agree, in the form prescribed by the commissioner, to pay the 
86.22 	recapture tax under subdivision 11, if applicable.

86.23 	EFFECTIVE DATE. This section is effective for estates of decedents dying after 
86.24 	June 30, 2011.

86.25 	Sec. 8. Minnesota Statutes 2011 Supplement, section 291.03, subdivision 10, is 
86.26 	amended to read:
86.27 		Subd. 10.Qualified farm property. Property satisfying all of the following 
86.28 	requirements is qualified farm property:
86.29 	(1) The value of the property was included in the federal adjusted taxable estate.
86.30 	(2) The property consists of agricultural land as defined by section 500.24, 
86.31 	subdivision 2, paragraph (g), and owned by a farm meeting the requirements of person 
86.32 	or entity that is not excluded from owning agricultural land by section 500.24, and was 
86.33 	classified for property tax purposes as the homestead of the decedent or the decedent's 
86.34 	spouse or both under section 273.124, and as class 2a property under section 273.13, 
86.35 	subdivision 23.
87.1 	(3) For property taxes payable in the year of decedent's death, the decedent's interest 
87.2 	in the property was classified as the homestead of the decedent or the decedent's spouse or 
87.3 	both under section 273.124, and as class 2a property under section 273.13, subdivision 23.
87.4 	(4) The decedent continuously owned the property, including property the decedent 
87.5 	is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for 
87.6 	the three-year period ending on the date of death of the decedent either by ownership of 
87.7 	the agricultural land or pursuant to holding an interest in an entity that is not excluded 
87.8 	from owning agricultural land under section 500.24.
87.9 	(4) A family member continuously uses the property in the operation of the trade or 
87.10 	business (5) The property is classified for property tax purposes as class 2a property under 
87.11 	section 273.13, subdivision 23, for three years following the date of death of the decedent.
87.12 	(5) (6) The estate and the qualified heir elect to treat the property as qualified farm 
87.13 	property and agree, in a form prescribed by the commissioner, to pay the recapture tax 
87.14 	under subdivision 11, if applicable.

87.15 	EFFECTIVE DATE. This section is effective for estates of decedents dying after 
87.16 	June 30, 2011.

87.17 	Sec. 9. Minnesota Statutes 2011 Supplement, section 291.03, subdivision 11, is 
87.18 	amended to read:
87.19 		Subd. 11.Recapture tax. (a) If, within three years after the decedent's death and 
87.20 	before the death of the qualified heir, the qualified heir disposes of any interest in the 
87.21 	qualified property, other than by a disposition to a family member or qualifying entity, 
87.22 	or a family member ceases to use the qualified property which was acquired or passed 
87.23 	from the decedent satisfy the requirement under subdivision 9, clause (7); or 10, clause 
87.24 	(5), an additional estate tax is imposed on the property. In the case of a sole proprietor, if 
87.25 	the qualified heir replaces qualified small business property excluded under subdivision 9 
87.26 	with similar property, then the qualified heir will not be treated as having disposed of an 
87.27 	interest in the qualified property.
87.28 	(b) The amount of the additional tax equals the amount of the exclusion claimed with 
87.29 	respect to the qualified interest disposed of by the estate under subdivision 8, paragraph 
87.30 	(d), multiplied by 16 percent.
87.31 	(c) The additional tax under this subdivision is due on the day which is six months 
87.32 	after the date of the disposition or cessation in paragraph (a).
87.33 	(c) For purposes of paragraph (a), "qualifying entity" means a corporation or other 
87.34 	entity that is owned by a family member or family members and, for qualified farm 
87.35 	property, that is not excluded from owning agricultural land under section 500.24.

88.1 	EFFECTIVE DATE. This section is effective for estates of decedents dying after 
88.2 	June 30, 2011.

88.3 	ARTICLE 6
88.4 	PUBLIC FINANCE

88.5 	Section 1. Minnesota Statutes 2010, section 373.40, subdivision 1, is amended to read:
88.6 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
88.7 	the meanings given.
88.8 	(a) "Bonds" means an obligation as defined under section 475.51.
88.9 	(b) "Capital improvement" means acquisition or betterment of public lands, 
88.10 	buildings, or other improvements within the county for the purpose of a county courthouse, 
88.11 	administrative building, health or social service facility, correctional facility, jail, law 
88.12 	enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads 
88.13 	and bridges, public works facilities, fairgrounds buildings, and records and data storage 
88.14 	facilities, and the acquisition of development rights in the form of conservation easements 
88.15 	under chapter 84C. An improvement must have an expected useful life of five years or 
88.16 	more to qualify. "Capital improvement" does not include a recreation or sports facility 
88.17 	building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility, 
88.18 	swimming pool, exercise room or health spa), unless the building is part of an outdoor 
88.19 	park facility and is incidental to the primary purpose of outdoor recreation.
88.20 	(c) "Metropolitan county" means a county located in the seven-county metropolitan 
88.21 	area as defined in section 473.121 or a county with a population of 90,000 or more.
88.22 	(d) "Population" means the population established by the most recent of the 
88.23 	following (determined as of the date the resolution authorizing the bonds was adopted):
88.24 	(1) the federal decennial census,
88.25 	(2) a special census conducted under contract by the United States Bureau of the 
88.26 	Census, or
88.27 	(3) a population estimate made either by the Metropolitan Council or by the state 
88.28 	demographer under section 4A.02.
88.29 	(e) "Qualified indoor ice arena" means a facility that meets the requirements of 
88.30 	section 373.43.
88.31 	(f) "Tax capacity" means total taxable market value, but does not include captured 
88.32 	market value.

88.33 	Sec. 2. Minnesota Statutes 2010, section 373.40, subdivision 2, is amended to read:
89.1 		Subd. 2.Application of election requirement. (a) Bonds issued by a county 
89.2 	to finance capital improvements under an approved capital improvement plan are not 
89.3 	subject to the election requirements of section 375.18 or 475.58. The bonds must be 
89.4 	approved by vote of at least three-fifths of the members of the county board. In the case 
89.5 	of a metropolitan county, the bonds must be approved by vote of at least two-thirds of 
89.6 	the members of the county board.
89.7 	(b) Before issuance of bonds qualifying under this section, the county must publish 
89.8 	a notice of its intention to issue the bonds and the date and time of a hearing to obtain 
89.9 	public comment on the matter. The notice must be published in the official newspaper 
89.10 	of the county or in a newspaper of general circulation in the county. The notice must be 
89.11 	published at least 14, but not more than 28, days before the date of the hearing.
89.12 	(c) A county may issue the bonds only upon obtaining the approval of a majority of 
89.13 	the voters voting on the question of issuing the obligations, if a petition requesting a vote 
89.14 	on the issuance is signed by voters equal to five percent of the votes cast in the county in 
89.15 	the last county general election and is filed with the county auditor within 30 days after 
89.16 	the public hearing. The commissioner of revenue shall prepare a suggested form of the 
89.17 	question to be presented at the election If the county elects not to submit the question to 
89.18 	the voters, the county shall not propose the issuance of bonds under this section for the 
89.19 	same purpose and in the same amount for a period of 365 days from the date of receipt 
89.20 	of the petition. If the question of issuing the bonds is submitted and not approved by the 
89.21 	voters, the provisions of section 475.58, subdivision 1a, apply.

89.22 	Sec. 3. Minnesota Statutes 2010, section 373.40, subdivision 4, is amended to read:
89.23 		Subd. 4.Limitations on amount. A county may not issue bonds under this section 
89.24 	if the maximum amount of principal and interest to become due in any year on all the 
89.25 	outstanding bonds issued pursuant to this section (including the bonds to be issued) will 
89.26 	equal or exceed 0.12 percent of taxable market value of property in the county. Calculation 
89.27 	of the limit must be made using the taxable market value for the taxes payable year in 
89.28 	which the obligations are issued and sold, provided that, for purposes of determining 
89.29 	the principal and interest due in any year, the county may deduct the amount of interest 
89.30 	expected to be paid or reimbursed to the county by the federal government in that year on 
89.31 	any outstanding bonds or the bonds to be issued. This section does not limit the authority 
89.32 	to issue bonds under any other special or general law.

89.33 	Sec. 4. Minnesota Statutes 2010, section 474A.02, subdivision 23a, is amended to read:
90.1 		Subd. 23a.Qualified bonds. "Qualified bonds" means the specific type or types 
90.2 	of obligations that are subject to the annual volume cap. Qualified bonds include the 
90.3 	following types of obligations as defined in federal tax law:
90.4 	(a) "public facility bonds" means "exempt facility bonds" as defined in federal 
90.5 	tax law, except for residential rental project bonds, which are those obligations issued 
90.6 	to finance airports, docks and wharves, mass commuting facilities, facilities for the 
90.7 	furnishing of water, sewage facilities, solid waste disposal facilities, facilities for the 
90.8 	local furnishing of electric energy or gas, local district heating or cooling facilities, and 
90.9 	qualified hazardous waste facilities. New bonds and other obligations are ineligible to 
90.10 	receive state allocations or entitlement authority for public facility projects under this 
90.11 	section if they have been issued:
90.12 	(1) for the purpose of refinancing, refunding, or otherwise defeasing existing debt; 
90.13 	and
90.14 	(2) more than one calendar year prior to the date of application;
90.15 	(b) "residential rental project bonds" which are those obligations issued to finance 
90.16 	qualified residential rental projects;
90.17 	(c) "mortgage bonds";
90.18 	(d) "small issue bonds" issued to finance manufacturing projects and the acquisition 
90.19 	or improvement of agricultural real or personal property under sections 41C.01 to 41C.13;
90.20 	(e) "student loan bonds" issued by or on behalf of the Minnesota Office of Higher 
90.21 	Education;
90.22 	(f) "redevelopment bonds";
90.23 	(g) "governmental bonds" with a nonqualified amount in excess of $15,000,000 as 
90.24 	set forth in section 141(b)5 of federal tax law; and
90.25 	(h) "enterprise zone facility bonds" issued to finance facilities located within 
90.26 	empowerment zones or enterprise communities, as authorized under Public Law 103-66, 
90.27 	section 13301 section 1394 of the Internal Revenue Code.

90.28 	Sec. 5. Minnesota Statutes 2010, section 475.521, subdivision 2, is amended to read:
90.29 		Subd. 2.Election requirement. (a) Bonds issued by a municipality to finance 
90.30 	capital improvements under an approved capital improvements plan are not subject to the 
90.31 	election requirements of section 475.58. The bonds must be approved by an affirmative 
90.32 	vote of three-fifths of the members of a five-member governing body. In the case of a 
90.33 	governing body having more or less than five members, the bonds must be approved by a 
90.34 	vote of at least two-thirds of the members of the governing body.
91.1 	(b) Before the issuance of bonds qualifying under this section, the municipality 
91.2 	must publish a notice of its intention to issue the bonds and the date and time of the 
91.3 	hearing to obtain public comment on the matter. The notice must be published in the 
91.4 	official newspaper of the municipality or in a newspaper of general circulation in the 
91.5 	municipality. Additionally, the notice may be posted on the official Web site, if any, of the 
91.6 	municipality. The notice must be published at least 14 but not more than 28 days before 
91.7 	the date of the hearing.
91.8 	(c) A municipality may issue the bonds only after obtaining the approval of a 
91.9 	majority of the voters voting on the question of issuing the obligations, if a petition 
91.10 	requesting a vote on the issuance is signed by voters equal to five percent of the votes cast 
91.11 	in the municipality in the last municipal general election and is filed with the clerk within 
91.12 	30 days after the public hearing. The commissioner of revenue shall prepare a suggested 
91.13 	form of the question to be presented at the election If the municipality elects not to submit 
91.14 	the question to the voters, the municipality shall not propose the issuance of bonds under 
91.15 	this section for the same purpose and in the same amount for a period of 365 days from the 
91.16 	date of receipt of the petition. If the question of issuing the bonds is submitted and not 
91.17 	approved by the voters, the provisions of section 475.58, subdivision 1a, apply.

91.18 	Sec. 6. Minnesota Statutes 2010, section 475.521, subdivision 4, is amended to read:
91.19 		Subd. 4.Limitations on amount. A municipality may not issue bonds under 
91.20 	this section if the maximum amount of principal and interest to become due in any 
91.21 	year on all the outstanding bonds issued under this section, including the bonds to be 
91.22 	issued, will equal or exceed 0.16 percent of the taxable market value of property in the 
91.23 	municipality. Calculation of the limit must be made using the taxable market value for 
91.24 	the taxes payable year in which the obligations are issued and sold, provided that, for 
91.25 	purposes of determining the principal and interest due in any year, the municipality may 
91.26 	deduct the amount of interest expected to be paid or reimbursed to the municipality by the 
91.27 	federal government in that year on any outstanding bonds or the bonds to be issued. In 
91.28 	the case of a municipality with a population of 2,500 or more, the bonds are subject to 
91.29 	the net debt limits under section 475.53. In the case of a shared facility in which more 
91.30 	than one municipality participates, upon compliance by each participating municipality 
91.31 	with the requirements of subdivision 2, the limitations in this subdivision and the net debt 
91.32 	represented by the bonds shall be allocated to each participating municipality in proportion 
91.33 	to its required financial contribution to the financing of the shared facility, as set forth in 
91.34 	the joint powers agreement relating to the shared facility. This section does not limit the 
91.35 	authority to issue bonds under any other special or general law.

92.1 	Sec. 7. Minnesota Statutes 2010, section 475.58, subdivision 3b, is amended to read:
92.2 		Subd. 3b.Street reconstruction. (a) A municipality may, without regard to 
92.3 	the election requirement under subdivision 1, issue and sell obligations for street 
92.4 	reconstruction, if the following conditions are met:
92.5 	(1) the streets are reconstructed under a street reconstruction plan that describes the 
92.6 	street reconstruction to be financed, the estimated costs, and any planned reconstruction 
92.7 	of other streets in the municipality over the next five years, and the plan and issuance of 
92.8 	the obligations has been approved by a vote of all of the members of the governing body 
92.9 	present at the meeting following a public hearing for which notice has been published in 
92.10 	the official newspaper at least ten days but not more than 28 days prior to the hearing; and
92.11 	(2) if a petition requesting a vote on the issuance is signed by voters equal to 
92.12 	five percent of the votes cast in the last municipal general election and is filed with the 
92.13 	municipal clerk within 30 days of the public hearing, the municipality may issue the bonds 
92.14 	only after obtaining the approval of a majority of the voters voting on the question of the 
92.15 	issuance of the obligations. If the municipality elects not to submit the question to the 
92.16 	voters, the municipality shall not propose the issuance of bonds under this section for the 
92.17 	same purpose and in the same amount for a period of 365 days from the date of receipt 
92.18 	of the petition. If the question of issuing the bonds is submitted and not approved by the 
92.19 	voters, the provisions of subdivision 1a, apply.
92.20 	(b) Obligations issued under this subdivision are subject to the debt limit of the 
92.21 	municipality and are not excluded from net debt under section 475.51, subdivision 4.
92.22 	(c) For purposes of this subdivision, street reconstruction includes utility 
92.23 	replacement and relocation and other activities incidental to the street reconstruction, turn 
92.24 	lanes and other improvements having a substantial public safety function, realignments, 
92.25 	other modifications to intersect with state and county roads, and the local share of state 
92.26 	and county road projects.
92.27 	(d) Except in the case of turn lanes, safety improvements, realignments, intersection 
92.28 	modifications, and the local share of state and county road projects, street reconstruction 
92.29 	does not include the portion of project cost allocable to widening a street or adding curbs 
92.30 	and gutters where none previously existed.

92.31 	Sec. 8. Laws 1971, chapter 773, section 1, subdivision 2, as amended by Laws 1974, 
92.32 	chapter 351, section 5, Laws 1976, chapter 234, sections 1 and 7, Laws 1978, chapter 788, 
92.33 	section 1, Laws 1981, chapter 369, section 1, Laws 1983, chapter 302, section 1, Laws 
92.34 	1988, chapter 513, section 1, Laws 1992, chapter 511, article 9, section 23, Laws 1998, 
93.1 	chapter 389, article 3, section 27, and Laws 2002, chapter 390, section 23, is amended to 
93.2 	read:
93.3 	Subd. 2. For each of the years 2003 to 2013 2012 to 2024, the city of St. Paul is 
93.4 	authorized to issue bonds in the aggregate principal amount of $20,000,000 for each year.

93.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

93.6 	Sec. 9. Laws 2003, chapter 127, article 12, section 28, is amended to read:
93.7 	Sec. 28. NURSING HOME BONDS AUTHORIZED.
 93.8 	(a) Itasca County may issue bonds under Minnesota Statutes, sections 376.55 and 
93.9 	376.56, to finance the construction of a 35-bed nursing home facility to replace an existing 
93.10 	35-bed private facility located in the county. The bonds issued under this section must
93.11 	may be payable solely from revenues and or may not be general obligations of the county.
93.12 	(b) Before issuing general obligation bonds under this section, the county must 
93.13 	publish a notice of its intention to issue the bonds and the date and time of a hearing to 
93.14 	obtain public comment on the matter. The notice must be published on the official Web 
93.15 	site of the county or in a newspaper of general circulation in the county. The notice must 
93.16 	be published at least 14, but not more than 28, days before the date of the hearing.  The 
93.17 	county may issue the bonds only upon obtaining the approval of a majority of the voters 
93.18 	voting on the question of issuing the obligations, if a petition requesting a vote on the 
93.19 	issuance is signed by voters equal to five percent of the votes cast in the county in the last 
93.20 	general election and is filed with the county auditor within 30 days after the public hearing.

93.21 	EFFECTIVE DATE; LOCAL APPROVAL. This section is effective the day after 
93.22 	the governing body of Itasca County and its chief clerical officer timely complete their 
93.23 	compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

93.24 	Sec. 10. WOODBURY; EXEMPTION FROM REFERENDUM.
 93.25 	(a) Notwithstanding the referendum requirement in Minnesota Statutes, section 
93.26 	475.58, subdivision 1, or any other provision of law, the city of Woodbury may issue and 
93.27 	sell obligations to pay for the cost of renovating, improving, expanding, and equipping the 
93.28 	Bielenberg Sports Center, along with costs of issuance of the obligations and capitalized 
93.29 	interest, if:
93.30 	(1) the obligations are secured by a pledge of revenues from the facility; and
93.31 	(2) the city finds, based on analysis provided by a professional experienced in 
93.32 	finance, that the facility's revenues and a property tax levy equal to the maximum annual 
93.33 	property tax levy used to pay the bonds previously issued to finance, in whole or in part, 
94.1 	the facility will in the aggregate be sufficient to pay the obligations without the imposition 
94.2 	of an additional property tax levy pledged to the obligations.
94.3 	(b) Before issuing bonds under this section, the city must publish a notice of its 
94.4 	intention to issue the bonds and the date and time of a hearing to obtain public comment 
94.5 	on the matter. The notice must be published on the official Web site of the city or in a 
94.6 	newspaper of general circulation in the city. The notice must be published at least 14, but 
94.7 	not more than 28, days before the date of the hearing. The city may issue the bonds only 
94.8 	upon obtaining the approval of a majority of the voters voting on the question of issuing 
94.9 	the obligations, if a petition requesting a vote on the issuance is signed by voters equal to 
94.10 	five percent of the votes cast in the city in the last general election and is filed with the city 
94.11 	clerk within 30 days after the public hearing.

94.12 	EFFECTIVE DATE; LOCAL APPROVAL. This section  is effective the day after 
94.13 	the governing body of the city of Woodbury and its chief clerical officer timely complete 
94.14 	their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

94.15 	ARTICLE 7
94.16 	HOMESTEAD MARKET VALUE CLEANUP

94.17 	Section 1. Minnesota Statutes 2010, section 38.18, is amended to read:
94.18 	38.18 COUNTY FAIRGROUNDS; IMPROVEMENT AIDED.
94.19 	Any Each town, statutory city, or school district in this state, now or hereafter at 
94.20 	any time having a an estimated market value of all its taxable property, exclusive of 
94.21 	money and credits, of more than $105,000,000, and having a county fair located within its 
94.22 	corporate limits, is hereby authorized to aid in defraying may pay part of the expense of 
94.23 	improving any such the fairground, by appropriating and paying over to the treasurer of 
94.24 	the county owning the fairground such sum of money, not exceeding $10,000, for each 
94.25 	of the political subdivisions, as the its governing body of the town, statutory city, or 
94.26 	school district may, by resolution, determine determines to be for the best interest of the 
94.27 	political subdivision,. The sums so appropriated to amounts paid to the county must be 
94.28 	used solely for the purpose of aiding in the improvement of to improve the fairground 
94.29 	in such the manner as the county board of the county shall determine determines to be 
94.30 	for the best interest of the county.

94.31 	Sec. 2. Minnesota Statutes 2010, section 40A.15, subdivision 2, is amended to read:
94.32 		Subd. 2.Eligible recipients. All counties within the state, municipalities that 
94.33 	prepare plans and official controls instead of a county, and districts are eligible for 
95.1 	assistance under the program. Counties and districts may apply for assistance on behalf 
95.2 	of other municipalities. In order to be eligible for financial assistance a county or 
95.3 	municipality must agree to levy at least 0.01209 percent of taxable estimated market 
95.4 	value for agricultural land preservation and conservation activities or otherwise spend the 
95.5 	equivalent amount of local money on those activities, or spend $15,000 of local money, 
95.6 	whichever is less.

95.7 	Sec. 3. Minnesota Statutes 2010, section 69.011, subdivision 1, is amended to read:
95.8 		Subdivision 1.Definitions. Unless the language or context clearly indicates that 
95.9 	a different meaning is intended, the following words and terms, for the purposes of this 
95.10 	chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:
95.11 	(a) "Commissioner" means the commissioner of revenue.
95.12 	(b) "Municipality" means:
95.13 	(1) a home rule charter or statutory city;
95.14 	(2) an organized town;
95.15 	(3) a park district subject to chapter 398;
95.16 	(4) the University of Minnesota;
95.17 	(5) for purposes of the fire state aid program only, an American Indian tribal 
95.18 	government entity located within a federally recognized American Indian reservation;
95.19 	(6) for purposes of the police state aid program only, an American Indian tribal 
95.20 	government with a tribal police department which exercises state arrest powers under 
95.21 	section 626.90, 626.91, 626.92, or 626.93;
95.22 	(7) for purposes of the police state aid program only, the Metropolitan Airports 
95.23 	Commission; and
95.24 	(8) for purposes of the police state aid program only, the Department of Natural 
95.25 	Resources and the Department of Public Safety with respect to peace officers covered 
95.26 	under chapter 352B.
95.27 	(c) "Minnesota Firetown Premium Report" means a form prescribed by the 
95.28 	commissioner containing space for reporting by insurers of fire, lightning, sprinkler 
95.29 	leakage and extended coverage premiums received upon risks located or to be performed 
95.30 	in this state less return premiums and dividends.
95.31 	(d) "Firetown" means the area serviced by any municipality having a qualified fire 
95.32 	department or a qualified incorporated fire department having a subsidiary volunteer 
95.33 	firefighters' relief association.
95.34 	(e) "Estimated market value" means latest available estimated market value of all 
95.35 	property in a taxing jurisdiction, whether the property is subject to taxation, or exempt 
96.1 	from ad valorem taxation obtained from information which appears on abstracts filed with 
96.2 	the commissioner of revenue or equalized by the State Board of Equalization.
96.3 	(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the 
96.4 	commissioner for reporting by each fire and casualty insurer of all premiums received 
96.5 	upon direct business received by it in this state, or by its agents for it, in cash or otherwise, 
96.6 	during the preceding calendar year, with reference to insurance written for insuring against 
96.7 	the perils contained in auto insurance coverages as reported in the Minnesota business 
96.8 	schedule of the annual financial statement which each insurer is required to file with 
96.9 	the commissioner in accordance with the governing laws or rules less return premiums 
96.10 	and dividends.
96.11 	(g) "Peace officer" means any person:
96.12 	(1) whose primary source of income derived from wages is from direct employment 
96.13 	by a municipality or county as a law enforcement officer on a full-time basis of not less 
96.14 	than 30 hours per week;
96.15 	(2) who has been employed for a minimum of six months prior to December 31 
96.16 	preceding the date of the current year's certification under subdivision 2, clause (b);
96.17 	(3) who is sworn to enforce the general criminal laws of the state and local 
96.18 	ordinances;
96.19 	(4) who is licensed by the Peace Officers Standards and Training Board and is 
96.20 	authorized to arrest with a warrant; and
96.21 	(5) who is a member of the Minneapolis Police Relief Association, the State Patrol 
96.22 	retirement plan, or the public employees police and fire fund.
96.23 	(h) "Full-time equivalent number of peace officers providing contract service" means 
96.24 	the integral or fractional number of peace officers which would be necessary to provide 
96.25 	the contract service if all peace officers providing service were employed on a full-time 
96.26 	basis as defined by the employing unit and the municipality receiving the contract service.
96.27 	(i) "Retirement benefits other than a service pension" means any disbursement 
96.28 	authorized under section 424A.05, subdivision 3, clauses (3) and (4).
96.29 	(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means the person 
96.30 	who was elected or appointed to the specified position or, in the absence of the person, 
96.31 	another person who is designated by the applicable governing body. In a park district, 
96.32 	the clerk is the secretary of the board of park district commissioners. In the case of the 
96.33 	University of Minnesota, the clerk is that official designated by the Board of Regents. 
96.34 	For the Metropolitan Airports Commission, the clerk is the person designated by the 
96.35 	commission. For the Department of Natural Resources or the Department of Public Safety, 
96.36 	the clerk is the respective commissioner. For a tribal police department which exercises 
97.1 	state arrest powers under section 626.90, 626.91, 626.92, or 626.93, the clerk is the person 
97.2 	designated by the applicable American Indian tribal government.
97.3 	(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the 
97.4 	retirement plan established by chapter 353G.

97.5 	Sec. 4. Minnesota Statutes 2010, section 69.021, subdivision 7, is amended to read:
97.6 		Subd. 7.Apportionment of fire state aid to municipalities and relief associations.
 97.7 	(a) The commissioner shall apportion the fire state aid relative to the premiums reported 
97.8 	on the Minnesota Firetown Premium Reports filed under this chapter to each municipality 
97.9 	and/or firefighters relief association.
97.10 	(b) The commissioner shall calculate an initial fire state aid allocation amount for 
97.11 	each municipality or fire department under paragraph (c) and a minimum fire state aid 
97.12 	allocation amount for each municipality or fire department under paragraph (d). The 
97.13 	municipality or fire department must receive the larger fire state aid amount.
97.14 	(c) The initial fire state aid allocation amount is the amount available for 
97.15 	apportionment as fire state aid under subdivision 5, without inclusion of any additional 
97.16 	funding amount to support a minimum fire state aid amount under section 423A.02, 
97.17 	subdivision 3, allocated one-half in proportion to the population as shown in the last 
97.18 	official statewide federal census for each fire town and one-half in proportion to the 
97.19 	estimated market value of each fire town, including (1) the estimated market value of 
97.20 	tax-exempt property and (2) the estimated market value of natural resources lands 
97.21 	receiving in lieu payments under sections 477A.11 to 477A.14, but excluding the 
97.22 	estimated market value of minerals. In the case of incorporated or municipal fire 
97.23 	departments furnishing fire protection to other cities, towns, or townships as evidenced 
97.24 	by valid fire service contracts filed with the commissioner, the distribution must be 
97.25 	adjusted proportionately to take into consideration the crossover fire protection service. 
97.26 	Necessary adjustments must be made to subsequent apportionments. In the case of 
97.27 	municipalities or independent fire departments qualifying for the aid, the commissioner 
97.28 	shall calculate the state aid for the municipality or relief association on the basis of the 
97.29 	population and the estimated market value of the area furnished fire protection service 
97.30 	by the fire department as evidenced by duly executed and valid fire service agreements 
97.31 	filed with the commissioner. If one or more fire departments are furnishing contracted fire 
97.32 	service to a city, town, or township, only the population and estimated market value of the 
97.33 	area served by each fire department may be considered in calculating the state aid and 
97.34 	the fire departments furnishing service shall enter into an agreement apportioning among 
98.1 	themselves the percent of the population and the estimated market value of each service 
98.2 	area. The agreement must be in writing and must be filed with the commissioner.
98.3 	(d) The minimum fire state aid allocation amount is the amount in addition to the 
98.4 	initial fire state allocation amount that is derived from any additional funding amount 
98.5 	to support a minimum fire state aid amount under section 423A.02, subdivision 3, and 
98.6 	allocated to municipalities with volunteer firefighters relief associations or covered by the 
98.7 	voluntary statewide lump-sum volunteer firefighter retirement plan based on the number 
98.8 	of active volunteer firefighters who are members of the relief association as reported 
98.9 	in the annual financial reporting for the calendar year 1993 to the Office of the State 
98.10 	Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or 
98.11 	fire departments with volunteer firefighters relief associations receive in total at least a 
98.12 	minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of 
98.13 	30 firefighters. If a relief association is established after calendar year 1993 and before 
98.14 	calendar year 2000, the number of active volunteer firefighters who are members of the 
98.15 	relief association as reported in the annual financial reporting for calendar year 1998 
98.16 	to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, 
98.17 	shall be used in this determination. If a relief association is established after calendar 
98.18 	year 1999, the number of active volunteer firefighters who are members of the relief 
98.19 	association as reported in the first annual financial reporting submitted to the Office of 
98.20 	the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this 
98.21 	determination. If a relief association is terminated as a result of providing retirement 
98.22 	coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer 
98.23 	firefighter retirement plan under chapter 353G, the number of active volunteer firefighters 
98.24 	of the municipality covered by the statewide plan as certified by the executive director of 
98.25 	the Public Employees Retirement Association to the commissioner and the state auditor, 
98.26 	but not to exceed 30 active firefighters, must be used in this determination.
98.27 	(e) Unless the firefighters of the applicable fire department are members of the 
98.28 	voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must 
98.29 	be paid to the treasurer of the municipality where the fire department is located and the 
98.30 	treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit 
98.31 	the aid to the relief association if the relief association has filed a financial report with the 
98.32 	treasurer of the municipality and has met all other statutory provisions pertaining to the 
98.33 	aid apportionment. If the firefighters of the applicable fire department are members of 
98.34 	the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid 
98.35 	must be paid to the executive director of the Public Employees Retirement Association 
98.36 	and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.
99.1 	(f) The commissioner may make rules to permit the administration of the provisions 
99.2 	of this section.
99.3 	(g) Any adjustments needed to correct prior misallocations must be made to 
99.4 	subsequent apportionments.

99.5 	Sec. 5. Minnesota Statutes 2010, section 69.021, subdivision 8, is amended to read:
99.6 		Subd. 8.Population and estimated market value. (a) In computations relating to 
99.7 	fire state aid requiring the use of population figures, only official statewide federal census 
99.8 	figures are to be used. Increases or decreases in population disclosed by reason of any 
99.9 	special census must not be taken into consideration.
99.10 	(b) In calculations relating to fire state aid requiring the use of estimated market 
99.11 	value property figures, only the latest available estimated market value property figures 
99.12 	may be used.

99.13 	Sec. 6. Minnesota Statutes 2010, section 88.51, subdivision 3, is amended to read:
99.14 		Subd. 3.Determination of market value. In determining the net tax capacity of 
99.15 	property within any taxing district the value of the surface of lands within any auxiliary 
99.16 	forest therein, as determined by the county board under the provisions of section 88.48, 
99.17 	subdivision 3, shall, for all purposes except the levying of taxes on lands within any such 
99.18 	forest, be deemed the estimated market value thereof.

99.19 	Sec. 7. Minnesota Statutes 2010, section 103B.245, subdivision 3, is amended to read:
99.20 		Subd. 3.Tax. After adoption of the ordinance under subdivision 2, a local 
99.21 	government unit may annually levy a tax on all taxable property in the district for the 
99.22 	purposes for which the tax district is established. The tax may not exceed 0.02418 percent 
99.23 	of estimated market value on taxable property located in rural towns other than urban 
99.24 	towns, unless allowed by resolution of the town electors. The proceeds of the tax shall 
99.25 	be paid into a fund reserved for these purposes. Any proceeds remaining in the reserve 
99.26 	fund at the time the tax is terminated or the district is dissolved shall be transferred and 
99.27 	irrevocably pledged to the debt service fund of the local unit to be used solely to reduce 
99.28 	tax levies for bonded indebtedness of taxable property in the district.

99.29 	Sec. 8. Minnesota Statutes 2010, section 103B.251, subdivision 8, is amended to read:
99.30 		Subd. 8.Tax. (a) For the payment of principal and interest on the bonds issued 
99.31 	under subdivision 7 and the payment required under subdivision 6, the county shall 
99.32 	irrevocably pledge and appropriate the proceeds of a tax levied on all taxable property 
100.1 	located within the territory of the watershed management organization or subwatershed 
100.2 	unit for which the bonds are issued. Each year until the reserve for payment of the bonds 
100.3 	is sufficient to retire the bonds, the county shall levy on all taxable property in the territory 
100.4 	of the organization or unit, without respect to any statutory or other limitation on taxes, an 
100.5 	amount of taxes sufficient to pay principal and interest on the bonds and to restore any 
100.6 	deficiencies in reserves required to be maintained for payment of the bonds.
100.7 	(b) The tax levied on rural towns other than urban towns may not exceed 0.02418 
100.8 	percent of taxable estimated market value, unless approved by resolution of the town 
100.9 	electors.
100.10 	(c) If at any time the amounts available from the levy on property in the territory of 
100.11 	the organization are insufficient to pay principal and interest on the bonds when due, the 
100.12 	county shall make payment from any available funds in the county treasury.
100.13 	(d) The amount of any taxes which are required to be levied outside of the territory 
100.14 	of the watershed management organization or unit or taken from the general funds of the 
100.15 	county to pay principal or interest on the bonds shall be reimbursed to the county from 
100.16 	taxes levied within the territory of the watershed management organization or unit.

100.17 	Sec. 9. Minnesota Statutes 2010, section 103B.635, subdivision 2, is amended to read:
100.18 		Subd. 2.Municipal funding of district. (a) The governing body or board of 
100.19 	supervisors of each municipality in the district must provide the funds necessary to meet 
100.20 	its proportion of the total cost determined by the board, provided the total funding from 
100.21 	all municipalities in the district for the costs shall not exceed an amount equal to .00242 
100.22 	percent of the total taxable estimated market value within the district, unless three-fourths 
100.23 	of the municipalities in the district pass a resolution concurring to the additional costs.
100.24 	(b) The funds must be deposited in the treasury of the district in amounts and at 
100.25 	times as the treasurer of the district requires.

100.26 	Sec. 10. Minnesota Statutes 2010, section 103B.691, subdivision 2, is amended to read:
100.27 		Subd. 2.Municipal funding of district. (a) The governing body or board of 
100.28 	supervisors of each municipality in the district shall provide the funds necessary to 
100.29 	meet its proportion of the total cost to be borne by the municipalities as finally certified 
100.30 	by the board.
100.31 	(b) The municipality's funds may be raised by any means within the authority of 
100.32 	the municipality. The municipalities may each levy a tax not to exceed .02418 percent of 
100.33 	taxable estimated market value on the taxable property located in the district to provide 
100.34 	the funds. The levy shall be within all other limitations provided by law.
101.1 	(c) The funds must be deposited into the treasury of the district in amounts and at 
101.2 	times as the treasurer of the district requires.

101.3 	Sec. 11. Minnesota Statutes 2010, section 103D.905, subdivision 2, is amended to read:
101.4 		Subd. 2.Organizational expense fund. (a) An organizational expense fund, 
101.5 	consisting of an ad valorem tax levy, shall not exceed 0.01596 percent of taxableestimated 
101.6 	market value, or $60,000, whichever is less. The money in the fund shall be used for 
101.7 	organizational expenses and preparation of the watershed management plan for projects.
101.8 	(b) The managers may borrow from the affected counties up to 75 percent of the 
101.9 	anticipated funds to be collected from the organizational expense fund levy and the 
101.10 	counties affected may make the advancements.
101.11 	(c) The advancement of anticipated funds shall be apportioned among affected 
101.12 	counties in the same ratio as the net tax capacity of the area of the counties within 
101.13 	the watershed district bears to the net tax capacity of the entire watershed district. If a 
101.14 	watershed district is enlarged, an organizational expense fund may be levied against the 
101.15 	area added to the watershed district in the same manner as provided in this subdivision.
101.16 	(d) Unexpended funds collected for the organizational expense may be transferred to 
101.17 	the administrative fund and used for the purposes of the administrative fund.

101.18 	Sec. 12. Minnesota Statutes 2010, section 103D.905, subdivision 3, is amended to read:
101.19 		Subd. 3.General fund. A general fund, consisting of an ad valorem tax levy, may 
101.20 	not exceed 0.048 percent of taxable estimated market value, or $250,000, whichever is 
101.21 	less. The money in the fund shall be used for general administrative expenses and for 
101.22 	the construction or implementation and maintenance of projects of common benefit to 
101.23 	the watershed district. The managers may make an annual levy for the general fund as 
101.24 	provided in section 103D.911. In addition to the annual general levy, the managers may 
101.25 	annually levy a tax not to exceed 0.00798 percent of taxable estimated market value 
101.26 	for a period not to exceed 15 consecutive years to pay the cost attributable to the basic 
101.27 	water management features of projects initiated by petition of a political subdivision 
101.28 	within the watershed district or by petition of at least 50 resident owners whose property 
101.29 	is within the watershed district.

101.30 	Sec. 13. Minnesota Statutes 2010, section 103D.905, subdivision 8, is amended to read:
101.31 		Subd. 8.Survey and data acquisition fund. (a) A survey and data acquisition fund 
101.32 	is established and used only if other funds are not available to the watershed district to pay 
101.33 	for making necessary surveys and acquiring data.
102.1 	(b) The survey and data acquisition fund consists of the proceeds of a property tax 
102.2 	that can be levied only once every five years. The levy may not exceed 0.02418 percent of 
102.3 	taxable estimated market value.
102.4 	(c) The balance of the survey and data acquisition fund may not exceed $50,000.
102.5 	(d) In a subsequent proceeding for a project where a survey has been made, the 
102.6 	attributable cost of the survey as determined by the managers shall be included as a part of 
102.7 	the cost of the work and the sum shall be repaid to the survey and data acquisition fund.

102.8 	Sec. 14. Minnesota Statutes 2010, section 117.025, subdivision 7, is amended to read:
102.9 		Subd. 7.Structurally substandard. "Structurally substandard" means a building:
102.10 	(1) that was inspected by the appropriate local government and cited for one or more 
102.11 	enforceable housing, maintenance, or building code violations;
102.12 	(2) in which the cited building code violations involve one or more of the following:
102.13 	(i) a roof and roof framing element;
102.14 	(ii) support walls, beams, and headers;
102.15 	(iii) foundation, footings, and subgrade conditions;
102.16 	(iv) light and ventilation;
102.17 	(v) fire protection, including egress;
102.18 	(vi) internal utilities, including electricity, gas, and water;
102.19 	(vii) flooring and flooring elements; or
102.20 	(viii) walls, insulation, and exterior envelope;
102.21 	(3) in which the cited housing, maintenance, or building code violations have not 
102.22 	been remedied after two notices to cure the noncompliance; and
102.23 	(4) has uncured housing, maintenance, and building code violations, satisfaction of 
102.24 	which would cost more than 50 percent of the assessor's taxable estimated market value 
102.25 	for the building, excluding land value, as determined under section 273.11 for property 
102.26 	taxes payable in the year in which the condemnation is commenced.
102.27 	A local government is authorized to seek from a judge or magistrate an administrative 
102.28 	warrant to gain access to inspect a specific building in a proposed development or 
102.29 	redevelopment area upon showing of probable cause that a specific code violation has 
102.30 	occurred and that the violation has not been cured, and that the owner has denied the local 
102.31 	government access to the property. Items of evidence that may support a conclusion of 
102.32 	probable cause may include recent fire or police inspections, housing inspection, exterior 
102.33 	evidence of deterioration, or other similar reliable evidence of deterioration in the specific 
102.34 	building.

103.1 	Sec. 15. Minnesota Statutes 2010, section 127A.48, subdivision 1, is amended to read:
103.2 		Subdivision 1.Computation. The Department of Revenue must annually conduct 
103.3 	an assessment/sales ratio study of the taxable property in each county, city, town, and 
103.4 	school district in accordance with the procedures in subdivisions 2 and 3. Based upon the 
103.5 	results of this assessment/sales ratio study, the Department of Revenue must determine an 
103.6 	aggregate equalized net tax capacity for the various classes of taxable property in each 
103.7 	taxing district, the aggregate of which tax capacity shall beis designated as the adjusted 
103.8 	net tax capacity. The adjusted net tax capacity must be reduced by the captured tax 
103.9 	capacity of tax increment districts under section 469.177, subdivision 2, fiscal disparities 
103.10 	contribution tax capacities under sections 276A.06 and 473F.08, and the tax capacity of 
103.11 	transmission lines required to be subtracted from the local tax base under section 273.425; 
103.12 	and increased by fiscal disparities distribution tax capacities under sections 276A.06 and 
103.13 	473F.08. The adjusted net tax capacities shall be determined using the net tax capacity 
103.14 	percentages in effect for the assessment year following the assessment year of the study. 
103.15 	The Department of Revenue must make whatever estimates are necessary to account for 
103.16 	changes in the classification system. The Department of Revenue may incur the expense 
103.17 	necessary to make the determinations. The commissioner of revenue may reimburse any 
103.18 	county or governmental official for requested services performed in ascertaining the 
103.19 	adjusted net tax capacity. On or before March 15 annually, the Department of Revenue 
103.20 	shall file with the chair of the Tax Committee of the house of representatives and the 
103.21 	chair of the Committee on Taxes and Tax laws of the senate a report of adjusted net tax 
103.22 	capacities for school districts. On or before June 15 annually, the Department of Revenue 
103.23 	shall file its final report on the adjusted net tax capacities for school districts established 
103.24 	by the previous year's assessments and the current year's net tax capacity percentages with 
103.25 	the commissioner of education and each county auditor for those school districts for 
103.26 	which the auditor has the responsibility for determination of local tax rates. A copy of 
103.27 	the report so filed shall be mailed to the clerk of each school district involved and to the 
103.28 	county assessor or supervisor of assessments of the county or counties in which each 
103.29 	school district is located.

103.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

103.31 	Sec. 16. Minnesota Statutes 2010, section 138.053, is amended to read:
103.32 	138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR 
103.33 	TOWNS.
104.1 	The governing body of any home rule charter or statutory city or town may annually 
104.2 	appropriate from its general fund an amount not to exceed 0.02418 percent of taxable
104.3 	estimated market value, derived from ad valorem taxes on property or other revenues, 
104.4 	to be paid to the historical society of its respective county to be used for the promotion 
104.5 	of historical work and to aid in defraying the expenses of carrying on the historical 
104.6 	work in the county. No city or town may appropriate any funds for the benefit of any 
104.7 	historical society unless the society is affiliated with and approved by the Minnesota 
104.8 	Historical Society.

104.9 	Sec. 17. Minnesota Statutes 2010, section 144F.01, subdivision 4, is amended to read:
104.10 		Subd. 4.Property tax levy authority. The district's board may levy a tax on the 
104.11 	taxable real and personal property in the district. The ad valorem tax levy may not 
104.12 	exceed 0.048 percent of the taxable estimated market value of the district or $400,000, 
104.13 	whichever is less. The proceeds of the levy must be used as provided in subdivision 5. 
104.14 	The board shall certify the levy at the times as provided under section 275.07. The board 
104.15 	shall provide the county with whatever information is necessary to identify the property 
104.16 	that is located within the district. If the boundaries include a part of a parcel, the entire 
104.17 	parcel shall be included in the district. The county auditors must spread, collect, and 
104.18 	distribute the proceeds of the tax at the same time and in the same manner as provided by 
104.19 	law for all other property taxes.

104.20 	Sec. 18. Minnesota Statutes 2010, section 162.07, subdivision 3, is amended to read:
104.21 		Subd. 3.Computation for rural counties. An amount equal to a levy of 0.01596 
104.22 	percent on each rural county's total taxable estimated market value for the last preceding 
104.23 	calendar year shall be computed and shall be subtracted from the county's total estimated 
104.24 	construction costs. The result thereof shall be the money needs of the county. For the 
104.25 	purpose of this section, "rural counties" means all counties having a population of less 
104.26 	than 175,000.

104.27 	Sec. 19. Minnesota Statutes 2010, section 162.07, subdivision 4, is amended to read:
104.28 		Subd. 4.Computation for urban counties. An amount equal to a levy of 0.00967 
104.29 	percent on each urban county's total taxable estimated market value for the last preceding 
104.30 	calendar year shall be computed and shall be subtracted from the county's total estimated 
104.31 	construction costs. The result thereof shall be the money needs of the county. For 
104.32 	the purpose of this section, "urban counties" means all counties having a population 
104.33 	of 175,000 or more.

105.1 	Sec. 20. Minnesota Statutes 2010, section 163.04, subdivision 3, is amended to read:
105.2 		Subd. 3.Bridges within certain cities. When the council of any statutory city or 
105.3 	city of the third or fourth class may determine that it is necessary to build or improve any 
105.4 	bridge or bridges, including approaches thereto, and any dam or retaining works connected 
105.5 	therewith, upon or forming a part of streets or highways either wholly or partly within 
105.6 	its limits, the county board shall appropriate one-half of the money as may be necessary 
105.7 	therefor from the county road and bridge fund, not exceeding during any year one-half 
105.8 	the amount of taxes paid into the county road and bridge fund during the preceding year, 
105.9 	on property within the corporate limits of the city. The appropriation shall be made upon 
105.10 	the petition of the council, which petition shall be filed by the council with the county 
105.11 	board prior to the fixing by the board of the annual county tax levy. The county board 
105.12 	shall determine the plans and specifications, shall let all necessary contracts, shall have 
105.13 	charge of construction, and upon its request, warrants in payment thereof shall be issued 
105.14 	by the county auditor, from time to time, as the construction work proceeds. Any unpaid 
105.15 	balance may be paid or advanced by the city. On petition of the council, the appropriations 
105.16 	of the county board, during not to exceed three successive years, may be made to apply 
105.17 	on the construction of the same items and to repay any money advanced by the city in 
105.18 	the construction thereof. None of the provisions of this section shall be construed to 
105.19 	be mandatory as applied to any city whose estimated market value exceeds $2,100 per 
105.20 	capita of its population.

105.21 	Sec. 21. Minnesota Statutes 2010, section 163.06, subdivision 6, is amended to read:
105.22 		Subd. 6.Expenditure in certain counties. In any county having not less than 95 
105.23 	nor more than 105 full and fractional townships, and having a an estimated market value 
105.24 	of not less than $12,000,000 nor more than $21,000,000, exclusive of money and credits,
105.25 	the county board, by resolution, may expend the funds provided in subdivision 4 in any 
105.26 	organized or unorganized township or portion thereof in such county.

105.27 	Sec. 22. Minnesota Statutes 2010, section 165.10, subdivision 1, is amended to read:
105.28 		Subdivision 1.Certain counties may issue and sell. The county board of any 
105.29 	county having no outstanding road and bridge bonds may issue and sell county road bonds 
105.30 	in an amount not exceeding 0.12089 percent of the estimated market value of the taxable 
105.31 	property within the county exclusive of money and credits, for the purpose of constructing, 
105.32 	reconstructing, improving, or maintaining any bridge or bridges on any highway under its 
105.33 	jurisdiction, without submitting the matter to a vote of the electors of the county.

106.1 	Sec. 23. Minnesota Statutes 2010, section 272.03, is amended by adding a subdivision 
106.2 	to read:
106.3 		Subd. 14.Estimated market value. "Estimated market value" means the assessor's 
106.4 	determination of market value, including the effects of any orders made under section 
106.5 	270.12 or chapter 274, for the parcel. The provisions of section 273.032 apply for certain 
106.6 	uses in determining the total estimated market value for the taxing jurisdiction.

106.7 	Sec. 24. Minnesota Statutes 2010, section 272.03, is amended by adding a subdivision 
106.8 	to read:
106.9 		Subd. 15.Taxable market value. "Taxable market value" means estimated market 
106.10 	value for the parcel as reduced by market value exclusions, deferments of value, or other 
106.11 	adjustments, required by law, that reduce market value before the application of class rates.

106.12 	Sec. 25. Minnesota Statutes 2010, section 273.032, is amended to read:
106.13 	273.032 MARKET VALUE DEFINITION.
106.14 	(a) Unless otherwise provided, for the purpose of determining any property tax 
106.15 	levy limitation based on market value or any limit on net debt, the issuance of bonds, 
106.16 	certificates of indebtedness, or capital notes based on market value, any qualification to 
106.17 	receive state aid based on market value, or any state aid amount based on market value, 
106.18 	the terms "market value," "taxable estimated market value," and "market valuation," 
106.19 	whether equalized or unequalized, mean the total taxable estimated market value of 
106.20 	taxable property within the local unit of government before any of the following or 
106.21 	similar adjustments for:
106.22 	(1) the market value exclusions under:
106.23 	(i) section 273.11, subdivisions 14a and 14c (vacant platted land);
106.24 	(ii) section 273.11, subdivision 16 (certain improvements to homestead property);
106.25 	(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business 
106.26 	properties);
106.27 	(iv) section 273.11, subdivision 21 (homestead property damaged by mold);
106.28 	(v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);
106.29 	(vi) section 273.13, subdivision 34 (homestead of a disabled veteran, spouse, or 
106.30 	caregiver);
106.31 	(vii) section 273.13, subdivision 35 (homestead market value exclusion); or
106.32 	(2) the deferment of value under:
106.33 	(i) the Minnesota Agricultural Property Tax Law, section 273.111;
106.34 	(ii) the aggregate resource preservation law, section 273.1115;
107.1 	(iii) the Minnesota Open Space Property Tax Law, section 273.112;
107.2 	(iv) the rural preserves property tax program, section 273.114; or
107.3 	(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or
107.4 	(3) the adjustments to tax capacity for:
107.5 	(i) tax increment, financing under sections 469.174 to 469.1794;
107.6 	(ii) fiscal disparity, disparities under chapter 276A or 473F; or
107.7 	(iii) powerline credit, or wind energy values, but after the limited market adjustments 
107.8 	under section 273.11, subdivision 1a, and after the market value exclusions of certain 
107.9 	improvements to homestead property under section 273.11, subdivision 16 under section 
107.10 	273.425.
107.11 	(b) Estimated market value under paragraph (a) also includes the market value 
107.12 	of tax exempt property if the applicable law specifically provides that the limitation, 
107.13 	qualification, or aid calculation includes tax exempt property.
107.14 	(c) Unless otherwise provided, "market value," "taxable estimated market value," 
107.15 	and "market valuation" for purposes of this paragraph  property tax levy limitations and 
107.16 	calculation of state aid, refer to the taxable estimated market value for the previous 
107.17 	assessment year and for purposes of limits on net debt, the issuance of bonds, certificates of 
107.18 	indebtedness, or capital notes refer to the estimated market value as last finally equalized.
107.19 	For the purpose of determining any net debt limit based on market value, or any limit 
107.20 	on the issuance of bonds, certificates of indebtedness, or capital notes based on market 
107.21 	value, the terms "market value," "taxable market value," and "market valuation," whether 
107.22 	equalized or unequalized, mean the total taxable market value of property within the local 
107.23 	unit of government before any adjustments for tax increment, fiscal disparity, powerline 
107.24 	credit, or wind energy values, but after the limited market value adjustments under section 
107.25 	273.11, subdivision 1a, and after the market value exclusions of certain improvements to 
107.26 	homestead property under section 273.11, subdivision 16. Unless otherwise provided, 
107.27 	"market value," "taxable market value," and "market valuation" for purposes of this 
107.28 	paragraph, mean the taxable market value as last finally equalized.
107.29 	(d) For purposes of a provision of a home rule charter or of any special law that is 
107.30 	not codified in the statutes and that imposes a levy limitation based on market value or 
107.31 	any limit on debt, the issuance of bonds, certificates of indebtedness, or capital notes 
107.32 	based on market value, the terms "market value," "taxable market value," and "market 
107.33 	valuation," whether equalized or unequalized, mean "estimated market value" as defined 
107.34 	in paragraph (a).

107.35 	Sec. 26. Minnesota Statutes 2010, section 273.11, subdivision 1, is amended to read:
108.1 		Subdivision 1.Generally. Except as provided in this section or section 273.17, 
108.2 	subdivision 1, all property shall be valued at its market value. The market value as 
108.3 	determined pursuant to this section shall be stated such that any amount under $100 is 
108.4 	rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100. 
108.5 	In estimating and determining such value, the assessor shall not adopt a lower or different 
108.6 	standard of value because the same is to serve as a basis of taxation, nor shall the assessor 
108.7 	adopt as a criterion of value the price for which such property would sell at a forced sale, 
108.8 	or in the aggregate with all the property in the town or district; but the assessor shall value 
108.9 	each article or description of property by itself, and at such sum or price as the assessor 
108.10 	believes the same to be fairly worth in money. The assessor shall take into account the 
108.11 	effect on the market value of property of environmental factors in the vicinity of the 
108.12 	property. In assessing any tract or lot of real property, the value of the land, exclusive of 
108.13 	structures and improvements, shall be determined, and also the value of all structures and 
108.14 	improvements thereon, and the aggregate value of the property, including all structures 
108.15 	and improvements, excluding the value of crops growing upon cultivated land. In valuing 
108.16 	real property upon which there is a mine or quarry, it shall be valued at such price as such 
108.17 	property, including the mine or quarry, would sell for at a fair, voluntary sale, for cash, 
108.18 	if the material being mined or quarried is not subject to taxation under section 298.015
108.19 	and the mine or quarry is not exempt from the general property tax under section 298.25. 
108.20 	In valuing real property which is vacant, platted property shall be assessed as provided 
108.21 	in subdivision 14 subdivisions 14a and 14c. All property, or the use thereof, which is 
108.22 	taxable under section 272.01, subdivision 2, or 273.19, shall be valued at the market 
108.23 	value of such property and not at the value of a leasehold estate in such property, or at 
108.24 	some lesser value than its market value.

108.25 	Sec. 27. Minnesota Statutes 2010, section 273.124, subdivision 3a, is amended to read:
108.26 		Subd. 3a.Manufactured home park cooperative. (a) When a manufactured home 
108.27 	park is owned by a corporation or association organized under chapter 308A or 308B, 
108.28 	and each person who owns a share or shares in the corporation or association is entitled 
108.29 	to occupy a lot within the park, the corporation or association may claim homestead 
108.30 	treatment for the park. Each lot must be designated by legal description or number, and 
108.31 	each lot is limited to not more than one-half acre of land.
108.32 	(b) The manufactured home park shall be entitled to homestead treatment if all 
108.33 	of the following criteria are met:
109.1 	(1) the occupant or the cooperative corporation or association is paying the ad 
109.2 	valorem property taxes and any special assessments levied against the land and structure 
109.3 	either directly, or indirectly through dues to the corporation or association; and
109.4 	(2) the corporation or association organized under chapter 308A or 308B is wholly 
109.5 	owned by persons having a right to occupy a lot owned by the corporation or association.
109.6 	(c) A charitable corporation, organized under the laws of Minnesota with no 
109.7 	outstanding stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) 
109.8 	tax-exempt status, qualifies for homestead treatment with respect to a manufactured home 
109.9 	park if its members hold residential participation warrants entitling them to occupy a lot 
109.10 	in the manufactured home park.
109.11 	(d) "Homestead treatment" under this subdivision means the class rate provided for 
109.12 	class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause (5), 
109.13 	item (ii). The homestead market value credit exclusion under section 273.1384 273.13, 
109.14 	subdivision 35, does not apply and the property taxes assessed against the park shall not 
109.15 	be included in the determination of taxes payable for rent paid under section 290A.03.

109.16 	EFFECTIVE DATE. This section is effective for taxes payable in 2012 and 
109.17 	thereafter.

109.18 	Sec. 28. Minnesota Statutes 2010, section 273.124, subdivision 13, is amended to read:
109.19 		Subd. 13.Homestead application. (a) A person who meets the homestead 
109.20 	requirements under subdivision 1 must file a homestead application with the county 
109.21 	assessor to initially obtain homestead classification.
109.22 	(b) The format and contents of a uniform homestead application shall be prescribed 
109.23 	by the commissioner of revenue. The application must clearly inform the taxpayer that 
109.24 	this application must be signed by all owners who occupy the property or by the qualifying 
109.25 	relative and returned to the county assessor in order for the property to receive homestead 
109.26 	treatment.
109.27 	(c) Every property owner applying for homestead classification must furnish to the 
109.28 	county assessor the Social Security number of each occupant who is listed as an owner 
109.29 	of the property on the deed of record, the name and address of each owner who does not 
109.30 	occupy the property, and the name and Social Security number of each owner's spouse who 
109.31 	occupies the property. The application must be signed by each owner who occupies the 
109.32 	property and by each owner's spouse who occupies the property, or, in the case of property 
109.33 	that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
109.34 	If a property owner occupies a homestead, the property owner's spouse may not 
109.35 	claim another property as a homestead unless the property owner and the property owner's 
110.1 	spouse file with the assessor an affidavit or other proof required by the assessor stating that 
110.2 	the property qualifies as a homestead under subdivision 1, paragraph (e).
110.3 	Owners or spouses occupying residences owned by their spouses and previously 
110.4 	occupied with the other spouse, either of whom fail to include the other spouse's name 
110.5 	and Social Security number on the homestead application or provide the affidavits or 
110.6 	other proof requested, will be deemed to have elected to receive only partial homestead 
110.7 	treatment of their residence. The remainder of the residence will be classified as 
110.8 	nonhomestead residential. When an owner or spouse's name and Social Security number 
110.9 	appear on homestead applications for two separate residences and only one application is 
110.10 	signed, the owner or spouse will be deemed to have elected to homestead the residence for 
110.11 	which the application was signed.
110.12 	The Social Security numbers, state or federal tax returns or tax return information, 
110.13 	including the federal income tax schedule F required by this section, or affidavits or other 
110.14 	proofs of the property owners and spouses submitted under this or another section to 
110.15 	support a claim for a property tax homestead classification are private data on individuals 
110.16 	as defined by section 13.02, subdivision 12, but, notwithstanding that section, the private 
110.17 	data may be disclosed to the commissioner of revenue, or, for purposes of proceeding 
110.18 	under the Revenue Recapture Act to recover personal property taxes owing, to the county 
110.19 	treasurer.
110.20 	(d) If residential real estate is occupied and used for purposes of a homestead by a 
110.21 	relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in 
110.22 	order for the property to receive homestead status, a homestead application must be filed 
110.23 	with the assessor. The Social Security number of each relative and spouse of a relative 
110.24 	occupying the property shall be required on the homestead application filed under this 
110.25 	subdivision. If a different relative of the owner subsequently occupies the property, the 
110.26 	owner of the property must notify the assessor within 30 days of the change in occupancy. 
110.27 	The Social Security number of a relative or relative's spouse occupying the property 
110.28 	is private data on individuals as defined by section 13.02, subdivision 12, but may be 
110.29 	disclosed to the commissioner of revenue, or, for the purposes of proceeding under the 
110.30 	Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
110.31 	(e) The homestead application shall also notify the property owners that the 
110.32 	application filed under this section will not be mailed annually and that if the property 
110.33 	is granted homestead status for any assessment year, that same property shall remain 
110.34 	classified as homestead until the property is sold or transferred to another person, or 
110.35 	the owners, the spouse of the owner, or the relatives no longer use the property as their 
110.36 	homestead. Upon the sale or transfer of the homestead property, a certificate of value must 
111.1 	be timely filed with the county auditor as provided under section 272.115. Failure to 
111.2 	notify the assessor within 30 days that the property has been sold, transferred, or that the 
111.3 	owner, the spouse of the owner, or the relative is no longer occupying the property as a 
111.4 	homestead, shall result in the penalty provided under this subdivision and the property 
111.5 	will lose its current homestead status.
111.6 	(f) If the homestead application is not returned within 30 days, the county will send a 
111.7 	second application to the present owners of record. The notice of proposed property taxes 
111.8 	prepared under section 275.065, subdivision 3, shall reflect the property's classification. If 
111.9 	a homestead application has not been filed with the county by December 15, the assessor 
111.10 	shall classify the property as nonhomestead for the current assessment year for taxes 
111.11 	payable in the following year, provided that the owner may be entitled to receive the 
111.12 	homestead classification by proper application under section 375.192.
111.13 	(g) At the request of the commissioner, each county must give the commissioner a 
111.14 	list that includes the name and Social Security number of each occupant of homestead 
111.15 	property who is the property owner, property owner's spouse, qualifying relative of a 
111.16 	property owner, or a spouse of a qualifying relative. The commissioner shall use the 
111.17 	information provided on the lists as appropriate under the law, including for the detection 
111.18 	of improper claims by owners, or relatives of owners, under chapter 290A.
111.19 	(h) If the commissioner finds that a property owner may be claiming a fraudulent 
111.20 	homestead, the commissioner shall notify the appropriate counties. Within 90 days of 
111.21 	the notification, the county assessor shall investigate to determine if the homestead 
111.22 	classification was properly claimed. If the property owner does not qualify, the county 
111.23 	assessor shall notify the county auditor who will determine the amount of homestead 
111.24 	benefits that had been improperly allowed. For the purpose of this section, "homestead 
111.25 	benefits" means the tax reduction resulting from the classification as a homestead and the 
111.26 	homestead market value exclusion under section 273.13, the taconite homestead credit 
111.27 	under section 273.135, the residential homestead and agricultural homestead credits credit
111.28 	under section 273.1384, and the supplemental homestead credit under section 273.1391.
111.29 	The county auditor shall send a notice to the person who owned the affected property 
111.30 	at the time the homestead application related to the improper homestead was filed, 
111.31 	demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent 
111.32 	of the homestead benefits. The person notified may appeal the county's determination 
111.33 	by serving copies of a petition for review with county officials as provided in section 
111.34 	278.01 and filing proof of service as provided in section 278.01 with the Minnesota Tax 
111.35 	Court within 60 days of the date of the notice from the county. Procedurally, the appeal 
111.36 	is governed by the provisions in chapter 271 which apply to the appeal of a property tax 
112.1 	assessment or levy, but without requiring any prepayment of the amount in controversy. If 
112.2 	the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal 
112.3 	has been filed, the county auditor shall certify the amount of taxes and penalty to the county 
112.4 	treasurer. The county treasurer will add interest to the unpaid homestead benefits and 
112.5 	penalty amounts at the rate provided in section 279.03 for real property taxes becoming 
112.6 	delinquent in the calendar year during which the amount remains unpaid. Interest may be 
112.7 	assessed for the period beginning 60 days after demand for payment was made.
112.8 	If the person notified is the current owner of the property, the treasurer may add the 
112.9 	total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes 
112.10 	otherwise payable on the property by including the amounts on the property tax statements 
112.11 	under section 276.04, subdivision 3. The amounts added under this paragraph to the ad 
112.12 	valorem taxes shall include interest accrued through December 31 of the year preceding 
112.13 	the taxes payable year for which the amounts are first added. These amounts, when added 
112.14 	to the property tax statement, become subject to all the laws for the enforcement of real or 
112.15 	personal property taxes for that year, and for any subsequent year.
112.16 	If the person notified is not the current owner of the property, the treasurer may 
112.17 	collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of 
112.18 	the powers granted in sections 277.20 and 277.21 without exclusion, to enforce payment 
112.19 	of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent 
112.20 	tax obligations of the person who owned the property at the time the application related 
112.21 	to the improperly allowed homestead was filed. The treasurer may relieve a prior owner 
112.22 	of personal liability for the homestead benefits, penalty, interest, and costs, and instead 
112.23 	extend those amounts on the tax lists against the property as provided in this paragraph 
112.24 	to the extent that the current owner agrees in writing. On all demands, billings, property 
112.25 	tax statements, and related correspondence, the county must list and state separately the 
112.26 	amounts of homestead benefits, penalty, interest and costs being demanded, billed or 
112.27 	assessed.
112.28 	(i) Any amount of homestead benefits recovered by the county from the property 
112.29 	owner shall be distributed to the county, city or town, and school district where the 
112.30 	property is located in the same proportion that each taxing district's levy was to the total 
112.31 	of the three taxing districts' levy for the current year. Any amount recovered attributable 
112.32 	to taconite homestead credit shall be transmitted to the St. Louis County auditor to be 
112.33 	deposited in the taconite property tax relief account. Any amount recovered that is 
112.34 	attributable to supplemental homestead credit is to be transmitted to the commissioner of 
112.35 	revenue for deposit in the general fund of the state treasury. The total amount of penalty 
112.36 	collected must be deposited in the county general fund.
113.1 	(j) If a property owner has applied for more than one homestead and the county 
113.2 	assessors cannot determine which property should be classified as homestead, the county 
113.3 	assessors will refer the information to the commissioner. The commissioner shall make 
113.4 	the determination and notify the counties within 60 days.
113.5 	(k) In addition to lists of homestead properties, the commissioner may ask the 
113.6 	counties to furnish lists of all properties and the record owners. The Social Security 
113.7 	numbers and federal identification numbers that are maintained by a county or city 
113.8 	assessor for property tax administration purposes, and that may appear on the lists retain 
113.9 	their classification as private or nonpublic data; but may be viewed, accessed, and used by 
113.10 	the county auditor or treasurer of the same county for the limited purpose of assisting the 
113.11 	commissioner in the preparation of microdata samples under section 270C.12.
113.12 	(l) On or before April 30 each year beginning in 2007, each county must provide the 
113.13 	commissioner with the following data for each parcel of homestead property by electronic 
113.14 	means as defined in section 289A.02, subdivision 8:
113.15 	(i) the property identification number assigned to the parcel for purposes of taxes 
113.16 	payable in the current year;
113.17 	(ii) the name and Social Security number of each occupant of homestead property 
113.18 	who is the property owner, property owner's spouse, qualifying relative of a property 
113.19 	owner, or spouse of a qualifying relative;
113.20 	(iii) the classification of the property under section 273.13 for taxes payable in the 
113.21 	current year and in the prior year;
113.22 	(iv) an indication of whether the property was classified as a homestead for taxes 
113.23 	payable in the current year because of occupancy by a relative of the owner or by a 
113.24 	spouse of a relative;
113.25 	(v) the property taxes payable as defined in section 290A.03, subdivision 13, for the 
113.26 	current year and the prior year;
113.27 	(vi) the market value of improvements to the property first assessed for tax purposes 
113.28 	for taxes payable in the current year;
113.29 	(vii) the assessor's estimated market value assigned to the property for taxes payable 
113.30 	in the current year and the prior year;
113.31 	(viii) the taxable market value assigned to the property for taxes payable in the 
113.32 	current year and the prior year;
113.33 	(ix) whether there are delinquent property taxes owing on the homestead;
113.34 	(x) the unique taxing district in which the property is located; and
113.35 	(xi) such other information as the commissioner decides is necessary.
114.1 	The commissioner shall use the information provided on the lists as appropriate 
114.2 	under the law, including for the detection of improper claims by owners, or relatives 
114.3 	of owners, under chapter 290A.

114.4 	EFFECTIVE DATE. This section is effective for taxes payable in 2012 and 
114.5 	thereafter.

114.6 	Sec. 29. Minnesota Statutes 2010, section 273.13, subdivision 21b, is amended to read:
114.7 		Subd. 21b.Net tax capacity. (a) Gross tax capacity means the product of the 
114.8 	appropriate gross class rates in this section and market values.
114.9 	(b) Net tax capacity means the product of the appropriate net class rates in this 
114.10 	section and taxable market values.

114.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

114.12 	Sec. 30. Minnesota Statutes 2010, section 273.1398, subdivision 3, is amended to read:
114.13 		Subd. 3.Disparity reduction aid.  The amount of disparity aid certified for each 
114.14 	taxing district within each unique taxing jurisdiction for taxes payable in the prior year 
114.15 	shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class rates for 
114.16 	taxes payable in the year for which aid is being computed, to (2) its tax capacity using 
114.17 	the class rates for taxes payable in the year prior to that for which aid is being computed, 
114.18 	both based upon taxable market values for taxes payable in the year prior to that for which 
114.19 	aid is being computed. If the commissioner determines that insufficient information is 
114.20 	available to reasonably and timely calculate the numerator in this ratio for the first taxes 
114.21 	payable year that a class rate change or new class rate is effective, the commissioner shall 
114.22 	omit the effects of that class rate change or new class rate when calculating this ratio for 
114.23 	aid payable in that taxes payable year. For aid payable in the year following a year for 
114.24 	which such omission was made, the commissioner shall use in the denominator for the 
114.25 	class that was changed or created, the tax capacity for taxes payable two years prior to that 
114.26 	in which the aid is payable, based on taxable market values for taxes payable in the year 
114.27 	prior to that for which aid is being computed.

114.28 	Sec. 31. Minnesota Statutes 2010, section 273.1398, subdivision 4, is amended to read:
114.29 		Subd. 4.Disparity reduction credit. (a) Beginning with taxes payable in 1989, 
114.30 	class 4a, class 3a, and class 3b property qualifies for a disparity reduction credit if: (1) 
114.31 	the property is located in a border city that has an enterprise zone designated pursuant 
114.32 	to section 469.168, subdivision 4; (2) the property is located in a city with a population 
115.1 	greater than 2,500 and less than 35,000 according to the 1980 decennial census; (3) the 
115.2 	city is adjacent to a city in another state or immediately adjacent to a city adjacent to a city 
115.3 	in another state; and (4) the adjacent city in the other state has a population of greater than 
115.4 	5,000 and less than 75,000 according to the 1980 decennial census.
115.5 	(b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a 
115.6 	property to 2.3 percent of the property's taxable market value and (ii) the tax on class 3a 
115.7 	and class 3b property to 2.3 percent of taxable market value.
115.8 	(c) The county auditor shall annually certify the costs of the credits to the 
115.9 	Department of Revenue. The department shall reimburse local governments for the 
115.10 	property taxes forgone as the result of the credits in proportion to their total levies.

115.11 	Sec. 32. Minnesota Statutes 2010, section 275.011, subdivision 1, is amended to read:
115.12 		Subdivision 1.Determination of levy limit. The property tax levied for any 
115.13 	purpose under a special law that is not codified in Minnesota Statutes or a city charter 
115.14 	provision and that is subject to a mill rate limitation imposed by the special law or city 
115.15 	charter provision, excluding levies subject to mill rate limitations that use adjusted 
115.16 	assessed values determined by the commissioner of revenue under section 124.2131, must 
115.17 	not exceed the following amount for the years specified:
115.18 	(a) for taxes payable in 1988, the product of the applicable mill rate limitation 
115.19 	imposed by special law or city charter provision multiplied by the total assessed valuation 
115.20 	of all taxable property subject to the tax as adjusted by the provisions of Minnesota 
115.21 	Statutes 1986, sections 272.64; 273.13, subdivision 7a; and 275.49;
115.22 	(b) for taxes payable in 1989, the product of (1) the property tax levy limitation for 
115.23 	the taxes payable year 1988 determined under clause (a) multiplied by (2) an index for 
115.24 	market valuation changes equal to the assessment year 1988 total market valuation of all 
115.25 	taxable property subject to the tax divided by the assessment year 1987 total market 
115.26 	valuation of all taxable property subject to the tax; and
115.27 	(c) for taxes payable in 1990 and subsequent years, the product of (1) the property 
115.28 	tax levy limitation for the previous year determined pursuant to this subdivision multiplied 
115.29 	by (2) an index for market valuation changes equal to the total market valuation of all 
115.30 	taxable property subject to the tax for the current assessment year divided by the total 
115.31 	market valuation of all taxable property subject to the tax for the previous assessment year.
115.32 	For the purpose of determining the property tax levy limitation for the taxes payable 
115.33 	year 1988 2013 and subsequent years under this subdivision, "total market valuation" 
115.34 	means the total estimated market valuation value of all taxable property subject to the 
115.35 	tax without valuation adjustments for fiscal disparities (chapters 276A and 473F), tax 
116.1 	increment financing (sections 469.174 to 469.179), or powerline credit (section 273.425)
116.2 	as provided under section 273.032.

116.3 	Sec. 33. Minnesota Statutes 2010, section 275.077, subdivision 2, is amended to read:
116.4 		Subd. 2.Correction of levy amount. The difference between the correct levy and 
116.5 	the erroneous levy shall be added to the township levy for the subsequent levy year; 
116.6 	provided that if the amount of the difference exceeds 0.12089 percent of taxable estimated
116.7 	market value, the excess shall be added to the township levy for the second and later 
116.8 	subsequent levy years, not to exceed an additional levy of 0.12089 percent of taxable
116.9 	estimated market value in any year, until the full amount of the difference has been levied. 
116.10 	The funds collected from the corrected levies shall be used to reimburse the county for the 
116.11 	payment required by subdivision 1.

116.12 	Sec. 34. Minnesota Statutes 2010, section 275.71, subdivision 4, is amended to read:
116.13 		Subd. 4.Adjusted levy limit base.  For taxes levied in 2008 through 2010, the 
116.14 	adjusted levy limit base is equal to the levy limit base computed under subdivision 2 
116.15 	or section 275.72, multiplied by:
116.16 	(1) one plus the percentage growth in the implicit price deflator, but the percentage 
116.17 	shall not be less than zero or exceed 3.9 percent;
116.18 	(2) one plus a percentage equal to 50 percent of the percentage increase in the number 
116.19 	of households, if any, for the most recent 12-month period for which data is available; and
116.20 	(3) one plus a percentage equal to 50 percent of the percentage increase in the 
116.21 	taxable estimated market value of the jurisdiction due to new construction of class 3 
116.22 	property, as defined in section 273.13, subdivision 4, except for state-assessed utility and 
116.23 	railroad property, for the most recent year for which data is available.

116.24 	Sec. 35. Minnesota Statutes 2011 Supplement, section 276.04, subdivision 2, is 
116.25 	amended to read:
116.26 		Subd. 2.Contents of tax statements. (a) The treasurer shall provide for the 
116.27 	printing of the tax statements. The commissioner of revenue shall prescribe the form of 
116.28 	the property tax statement and its contents. The tax statement must not state or imply 
116.29 	that property tax credits are paid by the state of Minnesota. The statement must contain 
116.30 	a tabulated statement of the dollar amount due to each taxing authority and the amount 
116.31 	of the state tax from the parcel of real property for which a particular tax statement is 
116.32 	prepared. The dollar amounts attributable to the county, the state tax, the voter approved 
116.33 	school tax, the other local school tax, the township or municipality, and the total of 
117.1 	the metropolitan special taxing districts as defined in section 275.065, subdivision 3, 
117.2 	paragraph (i), must be separately stated. The amounts due all other special taxing districts, 
117.3 	if any, may be aggregated except that any levies made by the regional rail authorities in the 
117.4 	county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
117.5 	398A shall be listed on a separate line directly under the appropriate county's levy. If the 
117.6 	county levy under this paragraph includes an amount for a lake improvement district as 
117.7 	defined under sections 103B.501 to 103B.581, the amount attributable for that purpose 
117.8 	must be separately stated from the remaining county levy amount. In the case of Ramsey 
117.9 	County, if the county levy under this paragraph includes an amount for public library 
117.10 	service under section 134.07, the amount attributable for that purpose may be separated 
117.11 	from the remaining county levy amount. The amount of the tax on homesteads qualifying 
117.12 	under the senior citizens' property tax deferral program under chapter 290B is the total 
117.13 	amount of property tax before subtraction of the deferred property tax amount. The 
117.14 	amount of the tax on contamination value imposed under sections 270.91 to 270.98, if any, 
117.15 	must also be separately stated. The dollar amounts, including the dollar amount of any 
117.16 	special assessments, may be rounded to the nearest even whole dollar. For purposes of this 
117.17 	section whole odd-numbered dollars may be adjusted to the next higher even-numbered 
117.18 	dollar. The amount of market value excluded under section 273.11, subdivision 16, if any, 
117.19 	must also be listed on the tax statement.
117.20 	(b) The property tax statements for manufactured homes and sectional structures 
117.21 	taxed as personal property shall contain the same information that is required on the 
117.22 	tax statements for real property.
117.23 	(c) Real and personal property tax statements must contain the following information 
117.24 	in the order given in this paragraph. The information must contain the current year tax 
117.25 	information in the right column with the corresponding information for the previous year 
117.26 	in a column on the left:
117.27 	(1) the property's estimated market value under section 273.11, subdivision 1;
117.28 	(2) the property's homestead market value exclusion under section 273.13, 
117.29 	subdivision 35;
117.30 	(3) the property's taxable market value after reductions under sections 273.11, 
117.31 	subdivisions 1a and 16, and 273.13, subdivision 35 section 272.03, subdivision 15;
117.32 	(4) the property's gross tax, before credits;
117.33 	(5) for homestead agricultural properties, the credit under section 273.1384;
117.34 	(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 
117.35 	273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of 
118.1 	credit received under section 273.135 must be separately stated and identified as "taconite 
118.2 	tax relief"; and
118.3 	(7) the net tax payable in the manner required in paragraph (a).
118.4 	(d) If the county uses envelopes for mailing property tax statements and if the county 
118.5 	agrees, a taxing district may include a notice with the property tax statement notifying 
118.6 	taxpayers when the taxing district will begin its budget deliberations for the current 
118.7 	year, and encouraging taxpayers to attend the hearings. If the county allows notices to 
118.8 	be included in the envelope containing the property tax statement, and if more than 
118.9 	one taxing district relative to a given property decides to include a notice with the tax 
118.10 	statement, the county treasurer or auditor must coordinate the process and may combine 
118.11 	the information on a single announcement.

118.12 	Sec. 36. Minnesota Statutes 2010, section 276A.01, subdivision 10, is amended to read:
118.13 		Subd. 10.Adjusted market value. "Adjusted market value" of real and personal 
118.14 	property within a municipality means the assessor's estimated taxable market value, 
118.15 	as defined in section 272.03, of all real and personal property, including the value of 
118.16 	manufactured housing, within the municipality. For purposes of sections 276A.01 to 
118.17 	276A.09, the commissioner of revenue shall annually make determinations and reports 
118.18 	with respect to each municipality which are comparable to those it makes for school 
118.19 	districts, adjusted for sales ratios in a manner similar to the adjustments made to city and 
118.20 	town net tax capacities under section 127A.48, subdivisions 1 to 6, in the same manner 
118.21 	and at the same times prescribed by the subdivision. The commissioner of revenue shall 
118.22 	annually determine, for each municipality, information comparable to that required by 
118.23 	section 475.53, subdivision 4, for school districts, as soon as practicable after it becomes 
118.24 	available. The commissioner of revenue shall then compute the equalized market value of 
118.25 	property within each municipality.

118.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

118.27 	Sec. 37. Minnesota Statutes 2010, section 276A.01, subdivision 12, is amended to read:
118.28 		Subd. 12.Fiscal capacity. "Fiscal capacity" of a municipality means its valuation
118.29 	adjusted market value, determined as of January 2 of any year, divided by its population, 
118.30 	determined as of a date in the same year.

118.31 	Sec. 38. Minnesota Statutes 2010, section 276A.01, subdivision 13, is amended to read:
118.32 		Subd. 13.Average fiscal capacity. "Average fiscal capacity" of municipalities 
118.33 	means the sum of the valuations adjusted market values of all municipalities, determined 
119.1 	as of January 2 of any year, divided by the sum of their populations, determined as of 
119.2 	a date in the same year.

119.3 	Sec. 39. Minnesota Statutes 2010, section 276A.01, subdivision 15, is amended to read:
119.4 		Subd. 15.Net tax capacity. "Net tax capacity" means the taxable market value of 
119.5 	real and personal property multiplied by its net tax capacity rates in section 273.13.

119.6 	Sec. 40. Minnesota Statutes 2010, section 287.08, is amended to read:
119.7 	287.08 TAX, HOW PAYABLE; RECEIPTS.
119.8 	(a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of 
119.9 	any county in this state in which the real property or some part is located at or before 
119.10 	the time of filing the mortgage for record. The treasurer shall endorse receipt on the 
119.11 	mortgage and the receipt is conclusive proof that the tax has been paid in the amount 
119.12 	stated and authorizes any county recorder or registrar of titles to record the mortgage. Its 
119.13 	form, in substance, shall be "registration tax hereon of ..................... dollars paid." If the 
119.14 	mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from 
119.15 	registration tax." In either case the receipt must be signed by the treasurer. In case the 
119.16 	treasurer is unable to determine whether a claim of exemption should be allowed, the tax 
119.17 	must be paid as in the case of a taxable mortgage. For documents submitted electronically, 
119.18 	the endorsements and tax amount shall be affixed electronically and no signature by the 
119.19 	treasurer will be required. The actual payment method must be arranged in advance 
119.20 	between the submitter and the receiving county.
119.21 	(b) The county treasurer may refund in whole or in part any mortgage registry tax 
119.22 	overpayment if a written application by the taxpayer is submitted to the county treasurer 
119.23 	within 3-1/2 years from the date of the overpayment. If the county has not issued a denial 
119.24 	of the application, the taxpayer may bring an action in Tax Court in the county in which 
119.25 	the tax was paid at any time after the expiration of six months from the time that the 
119.26 	application was submitted. A denial of refund may be appealed within 60 days from 
119.27 	the date of the denial by bringing an action in Tax Court in the county in which the tax 
119.28 	was paid. The action is commenced by the serving of a petition for relief on the county 
119.29 	treasurer, and by filing a copy with the court. The county attorney shall defend the action. 
119.30 	The county treasurer shall notify the treasurer of each county that has or would receive a 
119.31 	portion of the tax as paid.
119.32 	(c) If the county treasurer determines a refund should be paid, or if a refund is 
119.33 	ordered by the court, the county treasurer of each county that actually received a portion 
119.34 	of the tax shall immediately pay a proportionate share of three percent of the refund 
120.1 	using any available county funds. The county treasurer of each county that received, or 
120.2 	would have received, a portion of the tax shall also pay their county's proportionate share 
120.3 	of the remaining 97 percent of the court-ordered refund on or before the 20th day of the 
120.4 	following month using solely the mortgage registry tax funds that would be paid to the 
120.5 	commissioner of revenue on that date under section 287.12. If the funds on hand under 
120.6 	this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the 
120.7 	county treasurer of the county in which the action was brought shall file a claim with the 
120.8 	commissioner of revenue under section 16A.48 for the remaining portion of 97 percent of 
120.9 	the refund, and shall pay over the remaining portion upon receipt of a warrant from the 
120.10 	state issued pursuant to the claim.
120.11 	(d) When any mortgage covers real property located in more than one county in this 
120.12 	state the total tax must be paid to the treasurer of the county where the mortgage is first 
120.13 	presented for recording, and the payment must be receipted as provided in paragraph 
120.14 	(a). If the principal debt or obligation secured by such a multiple county mortgage 
120.15 	exceeds $10,000,000, the nonstate portion of the tax must be divided and paid over by 
120.16 	the county treasurer receiving it, on or before the 20th day of each month after receipt, 
120.17 	to the county or counties entitled in the ratio that the estimated market value of the real 
120.18 	property covered by the mortgage in each county bears to the estimated market value of 
120.19 	all the real property in this state described in the mortgage. In making the division and 
120.20 	payment the county treasurer shall send a statement giving the description of the real 
120.21 	property described in the mortgage and the estimated market value of the part located in 
120.22 	each county. For this purpose, the treasurer of any county may require the treasurer of 
120.23 	any other county to certify to the former the estimated market valuation value of any tract 
120.24 	of real property in any mortgage.
120.25 	(e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The 
120.26 	mortgagee may undertake to collect and remit the tax on behalf of the mortgagor. If the 
120.27 	mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor, 
120.28 	the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the 
120.29 	amount of the tax collected for that purpose and the mortgagor is relieved of any further 
120.30 	obligation to pay the tax as to the amount collected by the mortgagee for this purpose.

120.31 	Sec. 41. Minnesota Statutes 2010, section 287.23, subdivision 1, is amended to read:
120.32 		Subdivision 1.Real property outside county. If any taxable deed or instrument 
120.33 	describes any real property located in more than one county in this state, the total tax must 
120.34 	be paid to the treasurer of the county where the document is first presented for recording, 
120.35 	and the payment must be receipted as provided in section 287.08. If the net consideration 
121.1 	exceeds $700,000, the nonstate portion of the tax must be divided and paid over by the 
121.2 	county treasurer receiving it, on or before the 20th day of each month after receipt, to 
121.3 	the county or counties entitled in the ratio which the estimated market value of the real 
121.4 	property covered by the document in each county bears to the estimated market value of 
121.5 	all the real property in this state described in the document. In making the division and 
121.6 	payment the county treasurer shall send a statement to the other involved counties giving 
121.7 	the description of the real property described in the document and the estimated market 
121.8 	value of the part located in each county. The treasurer of any county may require the 
121.9 	treasurer of any other county to certify to the former the estimated market valuation value
121.10 	of any parcel of real property for this purpose.

121.11 	Sec. 42. Minnesota Statutes 2010, section 353G.08, subdivision 2, is amended to read:
121.12 		Subd. 2.Cash flow funding requirement. If the executive director determines that 
121.13 	an account in the voluntary statewide lump-sum volunteer firefighter retirement plan has 
121.14 	insufficient assets to meet the service pensions determined payable from the account, 
121.15 	the executive director shall certify the amount of the potential service pension shortfall 
121.16 	to the municipality or municipalities and the municipality or municipalities shall make 
121.17 	an additional employer contribution to the account within ten days of the certification. 
121.18 	If more than one municipality is associated with the account, unless the municipalities 
121.19 	agree to a different allocation, the municipalities shall allocate the additional employer 
121.20 	contribution one-half in proportion to the population of each municipality and one-half in 
121.21 	proportion to the estimated market value of the property of each municipality.

121.22 	Sec. 43. Minnesota Statutes 2010, section 365.025, subdivision 4, is amended to read:
121.23 		Subd. 4.Major purchases: notice, petition, election. Before buying anything 
121.24 	under subdivision 2 that costs more than 0.24177 percent of the estimated market value of 
121.25 	the town, the town must follow this subdivision.
121.26 	The town must publish in its official newspaper the board's resolution to pay for the 
121.27 	property over time. Then a petition for an election on the contract may be filed with the 
121.28 	clerk. The petition must be filed within ten days after the resolution is published. To 
121.29 	require the election the petition must be signed by a number of voters equal to ten percent 
121.30 	of the voters at the last regular town election. The contract then must be approved by a 
121.31 	majority of those voting on the question. The question may be voted on at a regular 
121.32 	or special election.

121.33 	Sec. 44. Minnesota Statutes 2010, section 366.095, subdivision 1, is amended to read:
122.1 		Subdivision 1.Certificates of indebtedness. The town board may issue certificates 
122.2 	of indebtedness within the debt limits for a town purpose otherwise authorized by law. 
122.3 	The certificates shall be payable in not more than ten years and be issued on the terms and 
122.4 	in the manner as the board may determine. If the amount of the certificates to be issued 
122.5 	exceeds 0.25 percent of the estimated market value of the town, they shall not be issued 
122.6 	for at least ten days after publication in a newspaper of general circulation in the town of 
122.7 	the board's resolution determining to issue them. If within that time, a petition asking for 
122.8 	an election on the proposition signed by voters equal to ten percent of the number of voters 
122.9 	at the last regular town election is filed with the clerk, the certificates shall not be issued 
122.10 	until their issuance has been approved by a majority of the votes cast on the question at 
122.11 	a regular or special election. A tax levy shall be made to pay the principal and interest 
122.12 	on the certificates as in the case of bonds.

122.13 	Sec. 45. Minnesota Statutes 2010, section 366.27, is amended to read:
122.14 	366.27 FIREFIGHTERS' RELIEF; TAX LEVY.
122.15 	The town board of any town in this state having therein a platted portion on 
122.16 	which resides 1,200 or more people, and wherein a duly incorporated firefighters' relief 
122.17 	association is located may each year levy a tax not to exceed 0.00806 percent of taxable
122.18 	estimated market value for the benefit of the relief association.

122.19 	Sec. 46. Minnesota Statutes 2010, section 368.01, subdivision 23, is amended to read:
122.20 		Subd. 23.Financing purchase of certain equipment. The town board may issue 
122.21 	certificates of indebtedness within debt limits to purchase fire or police equipment or 
122.22 	ambulance equipment or street construction or maintenance equipment. The certificates 
122.23 	shall be payable in not more than five years and be issued on terms and in the manner 
122.24 	as the board may determine. If the amount of the certificates to be issued to finance a 
122.25 	purchase exceeds 0.24177 percent of the estimated market value of the town, excluding 
122.26 	money and credits, they shall not be issued for at least ten days after publication in the 
122.27 	official newspaper of a town board resolution determining to issue them. If before the end 
122.28 	of that time, a petition asking for an election on the proposition signed by voters equal 
122.29 	to ten percent of the number of voters at the last regular town election is filed with the 
122.30 	clerk, the certificates shall not be issued until the proposition of their issuance has been 
122.31 	approved by a majority of the votes cast on the question at a regular or special election. 
122.32 	A tax levy shall be made for the payment of the principal and interest on the certificates 
122.33 	as in the case of bonds.

123.1 	Sec. 47. Minnesota Statutes 2010, section 368.47, is amended to read:
123.2 	368.47 TOWNS MAY BE DISSOLVED.
123.3 	(1) When the voters residing within a town have failed to elect any town officials for 
123.4 	more than ten years continuously;
123.5 	(2) when a town has failed for a period of ten years to exercise any of the powers 
123.6 	and functions of a town;
123.7 	(3) when the estimated market value of a town drops to less than $165,000;
123.8 	(4) when the tax delinquency of a town, exclusive of taxes that are delinquent or 
123.9 	unpaid because they are contested in proceedings for the enforcement of taxes, amounts to 
123.10 	12 percent of its market value; or
123.11 	(5) when the state or federal government has acquired title to 50 percent of the 
123.12 	real estate of a town,
123.13 	which facts, or any of them, may be found and determined by the resolution of the county 
123.14 	board of the county in which the town is located, according to the official records in the 
123.15 	office of the county auditor, the county board by resolution may declare the town, naming 
123.16 	it, dissolved and no longer entitled to exercise any of the powers or functions of a town.
123.17 	In Cass, Itasca, and St. Louis Counties, before the dissolution is effective the voters 
123.18 	of the town shall express their approval or disapproval. The town clerk shall, upon a 
123.19 	petition signed by a majority of the registered voters of the town, filed with the clerk at 
123.20 	least 60 days before a regular or special town election, give notice at the same time and 
123.21 	in the same manner of the election that the question of dissolution of the town will be 
123.22 	submitted for determination at the election. At the election the question shall be voted 
123.23 	upon by a separate ballot, the terms of which shall be either "for dissolution" or "against 
123.24 	dissolution." The ballot shall be deposited in a separate ballot box and the result of the 
123.25 	voting canvassed, certified, and returned in the same manner and at the same time as 
123.26 	other facts and returns of the election. If a majority of the votes cast at the election are 
123.27 	for dissolution, the town shall be dissolved. If a majority of the votes cast at the election 
123.28 	are against dissolution, the town shall not be dissolved.
123.29 	When a town is dissolved under sections 368.47 to 368.49 the county shall acquire 
123.30 	title to any telephone company or other business conducted by the town. The business 
123.31 	shall be operated by the board of county commissioners until it can be sold. The 
123.32 	subscribers or patrons of the business shall have the first opportunity of purchase. If the 
123.33 	town has any outstanding indebtedness chargeable to the business, the county auditor shall 
123.34 	levy a tax against the property situated in the dissolved town to pay the indebtedness 
123.35 	as it becomes due.

124.1 	Sec. 48. Minnesota Statutes 2010, section 370.01, is amended to read:
124.2 	370.01 CHANGE OF BOUNDARIES; CREATION OF NEW COUNTIES.
124.3 	The boundaries of counties may be changed by taking territory from a county and 
124.4 	attaching it to an adjoining county, and new counties may be established out of territory of 
124.5 	one or more existing counties. A new county shall contain at least 400 square miles and 
124.6 	have at least 4,000 inhabitants. A proposed new county must have a total taxable estimated
124.7 	market value of at least 35 percent of (i) the total taxable estimated market value of the 
124.8 	existing county, or (ii) the average total taxable estimated market value of the existing 
124.9 	counties, included in the proposition. The determination of the taxable estimated market 
124.10 	value of a county must be made by the commissioner of revenue. An existing county shall 
124.11 	not be reduced in area below 400 square miles, have less than 4,000 inhabitants, or have a 
124.12 	total taxable estimated market value of less than that required of a new county.
124.13 	No change in the boundaries of any county having an area of more than 2,500 square 
124.14 	miles, whether by the creation of a new county, or otherwise, shall detach from the existing 
124.15 	county any territory within 12 miles of the county seat.

124.16 	Sec. 49. Minnesota Statutes 2010, section 373.40, subdivision 1, is amended to read:
124.17 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
124.18 	the meanings given.
124.19 	(a) "Bonds" means an obligation as defined under section 475.51.
124.20 	(b) "Capital improvement" means acquisition or betterment of public lands, 
124.21 	buildings, or other improvements within the county for the purpose of a county courthouse, 
124.22 	administrative building, health or social service facility, correctional facility, jail, law 
124.23 	enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads and 
124.24 	bridges, and the acquisition of development rights in the form of conservation easements 
124.25 	under chapter 84C. An improvement must have an expected useful life of five years or 
124.26 	more to qualify. "Capital improvement" does not include a recreation or sports facility 
124.27 	building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility, 
124.28 	swimming pool, exercise room or health spa), unless the building is part of an outdoor 
124.29 	park facility and is incidental to the primary purpose of outdoor recreation.
124.30 	(c) "Metropolitan county" means a county located in the seven-county metropolitan 
124.31 	area as defined in section 473.121 or a county with a population of 90,000 or more.
124.32 	(d) "Population" means the population established by the most recent of the 
124.33 	following (determined as of the date the resolution authorizing the bonds was adopted):
124.34 	(1) the federal decennial census,
125.1 	(2) a special census conducted under contract by the United States Bureau of the 
125.2 	Census, or
125.3 	(3) a population estimate made either by the Metropolitan Council or by the state 
125.4 	demographer under section 4A.02.
125.5 	(e) "Qualified indoor ice arena" means a facility that meets the requirements of 
125.6 	section 373.43.
125.7 	(f) "Tax capacity" means total taxable market value, but does not include captured 
125.8 	market value.

125.9 	Sec. 50. Minnesota Statutes 2010, section 373.40, subdivision 4, is amended to read:
125.10 		Subd. 4.Limitations on amount. A county may not issue bonds under this section 
125.11 	if the maximum amount of principal and interest to become due in any year on all the 
125.12 	outstanding bonds issued pursuant to this section (including the bonds to be issued) will 
125.13 	equal or exceed 0.12 percent of taxable the estimated market value of property in the 
125.14 	county. Calculation of the limit must be made using the taxable estimated market value for 
125.15 	the taxes payable year in which the obligations are issued and sold. This section does not 
125.16 	limit the authority to issue bonds under any other special or general law.

125.17 	Sec. 51. Minnesota Statutes 2010, section 375.167, subdivision 1, is amended to read:
125.18 		Subdivision 1.Appropriations. Notwithstanding any contrary law, a county board 
125.19 	may appropriate from the general revenue fund to any nonprofit corporation a sum not 
125.20 	to exceed 0.00604 percent of taxable estimated market value to provide legal assistance 
125.21 	to persons who are unable to afford private legal counsel.

125.22 	Sec. 52. Minnesota Statutes 2010, section 375.18, subdivision 3, is amended to read:
125.23 		Subd. 3.Courthouse. Each county board may erect, furnish, and maintain a 
125.24 	suitable courthouse. No indebtedness shall be created for a courthouse in excess of an 
125.25 	amount equal to a levy of 0.04030 percent of taxable estimated market value without the 
125.26 	approval of a majority of the voters of the county voting on the question of issuing the 
125.27 	obligation at an election.

125.28 	Sec. 53. Minnesota Statutes 2010, section 375.555, is amended to read:
125.29 	375.555 FUNDING.
125.30 	To implement the county emergency jobs program, the county board may expend 
125.31 	an amount equal to what would be generated by a levy of 0.01209 percent of taxable
126.1 	estimated market value. The money to be expended may be from any available funds 
126.2 	not otherwise earmarked.

126.3 	Sec. 54. Minnesota Statutes 2010, section 383B.152, is amended to read:
126.4 	383B.152 BUILDING AND MAINTENANCE FUND.
126.5 	The county board may by resolution levy a tax to provide money which shall be kept 
126.6 	in a fund known as the county reserve building and maintenance fund. Money in the fund 
126.7 	shall be used solely for the construction, maintenance, and equipping of county buildings 
126.8 	that are constructed or maintained by the board. The levy shall not be subject to any limit 
126.9 	fixed by any other law or by any board of tax levy or other corresponding body, but shall 
126.10 	not exceed 0.02215 percent of taxable estimated market value, less the amount required by 
126.11 	chapter 475 to be levied in the year for the payment of the principal of and interest on all 
126.12 	bonds issued pursuant to Extra Session Laws 1967, chapter 47, section 1.

126.13 	Sec. 55. Minnesota Statutes 2010, section 383B.245, is amended to read:
126.14 	383B.245 LIBRARY LEVY.
126.15 	(a) The county board may levy a tax on the taxable property within the county to 
126.16 	acquire, better, and construct county library buildings and branches and to pay principal 
126.17 	and interest on bonds issued for that purpose.
126.18 	(b) The county board may by resolution adopted by a five-sevenths vote issue and 
126.19 	sell general obligation bonds of the county in the manner provided in sections 475.60 to 
126.20 	475.73. The bonds shall not be subject to the limitations of sections 475.51 to 475.59, 
126.21 	but the maturity years and amounts and interest rates of each series of bonds shall be 
126.22 	fixed so that the maximum amount of principal and interest to become due in any year, 
126.23 	on the bonds of that series and of all outstanding series issued by or for the purposes of 
126.24 	libraries, shall not exceed an amount equal to 0.01612 percent of estimated market value 
126.25 	of all taxable property in the county as last finally equalized before the issuance of the new 
126.26 	series. When the tax levy authorized in this section is collected it shall be appropriated 
126.27 	and credited to a debt service fund for the bonds in amounts required each year in lieu of a 
126.28 	countywide tax levy for the debt service fund under section 475.61.

126.29 	Sec. 56. Minnesota Statutes 2010, section 383B.73, subdivision 1, is amended to read:
126.30 		Subdivision 1.Levy. To provide funds for the purposes of the Three Rivers Park 
126.31 	District as set forth in its annual budget, in lieu of the levies authorized by any other 
126.32 	special law for such purposes, the Board of Park District Commissioners may levy 
126.33 	taxes on all the taxable property in the county and park district at a rate not exceeding 
127.1 	0.03224 percent of estimated market value. Notwithstanding section 398.16, on or before 
127.2 	October 1 of each year, after public hearing, the Board of Park District Commissioners 
127.3 	shall adopt a budget for the ensuing year and shall determine the total amount necessary 
127.4 	to be raised from ad valorem tax levies to meet its budget. The Board of Park District 
127.5 	Commissioners shall submit the budget to the county board. The county board may veto 
127.6 	or modify an item contained in the budget. If the county board determines to veto or to 
127.7 	modify an item in the budget, it must, within 15 days after the budget was submitted by 
127.8 	the district board, state in writing the specific reasons for its objection to the item vetoed 
127.9 	or the reason for the modification. The Park District Board, after consideration of the 
127.10 	county board's objections and proposed modifications, may reapprove a vetoed item or the 
127.11 	original version of an item with respect to which a modification has been proposed, by a 
127.12 	two-thirds majority. If the district board does not reapprove a vetoed item, the item shall 
127.13 	be deleted from the budget. If the district board does not reapprove the original version 
127.14 	of a modified item, the item shall be included in the budget as modified by the county 
127.15 	board. After adoption of the final budget and no later than October 1, the superintendent 
127.16 	of the park district shall certify to the office of the Hennepin County director of tax and 
127.17 	public records exercising the functions of the county auditor the total amount to be raised 
127.18 	from ad valorem tax levies to meet its budget for the ensuing year. The director of tax 
127.19 	and public records shall add the amount of any levy certified by the district to other tax 
127.20 	levies on the property of the county within the district for collection by the director of tax 
127.21 	and public records with other taxes. When collected, the director shall make settlement of 
127.22 	such taxes with the district in the same manner as other taxes are distributed to the other 
127.23 	political subdivisions in Hennepin County.

127.24 	Sec. 57. Minnesota Statutes 2010, section 383E.20, is amended to read:
127.25 	383E.20 BONDING FOR COUNTY LIBRARY BUILDINGS.
127.26 	The Anoka County Board may, by resolution adopted by a four-sevenths vote, issue 
127.27 	and sell general obligation bonds of the county in the manner provided in chapter 475 to 
127.28 	acquire, better, and construct county library buildings. The bonds shall not be subject to the 
127.29 	requirements of sections 475.57 to 475.59. The maturity years and amounts and interest 
127.30 	rates of each series of bonds shall be fixed so that the maximum amount of principal and 
127.31 	interest to become due in any year, on the bonds of that series and of all outstanding series 
127.32 	issued by or for the purposes of libraries, shall not exceed an amount equal to .01 percent 
127.33 	of the taxable estimated market value of all taxable property in the county, excluding any 
127.34 	taxable property taxed by any city for the support of any free public library. When the tax 
127.35 	levy authorized in this section is collected, it shall be appropriated and credited to a debt 
128.1 	service fund for the bonds. The tax levy for the debt service fund under section 475.61 
128.2 	shall be reduced by the amount available or reasonably anticipated to be available in the 
128.3 	fund to make payments otherwise payable from the levy pursuant to section 475.61.

128.4 	Sec. 58. Minnesota Statutes 2010, section 383E.23, is amended to read:
128.5 	383E.23 LIBRARY TAX.
128.6 	The Anoka County Board may levy a tax of not more than .01 percent of the taxable
128.7 	estimated market value of taxable property located within the county excluding any 
128.8 	taxable property taxed by any city for the support of any free public library, to acquire, 
128.9 	better, and construct county library buildings and to pay principal and interest on bonds 
128.10 	issued for that purpose. The tax shall be disregarded in the calculation of levies or limits 
128.11 	on levies provided by section 373.40, or other law.

128.12 	Sec. 59. Minnesota Statutes 2010, section 385.31, is amended to read:
128.13 	385.31 PAYMENT OF COUNTY ORDERS OR WARRANTS.
128.14 	When any order or warrant drawn on the treasurer is presented for payment, if there 
128.15 	is money in the treasury for that purpose, the county treasurer shall redeem the same, and 
128.16 	write across the entire face thereof the word "redeemed," the date of the redemption, and 
128.17 	the treasurer's official signature. If there is not sufficient funds in the proper accounts to 
128.18 	pay such orders they shall be numbered and registered in their order of presentation, 
128.19 	and proper endorsement thereof shall be made on such orders and they shall be entitled 
128.20 	to payment in like order. Such orders shall bear interest at not to exceed the rate of six 
128.21 	percent per annum from such date of presentment. The treasurer, as soon as there is 
128.22 	sufficient money in the treasury, shall appropriate and set apart a sum sufficient for the 
128.23 	payment of the orders so presented and registered, and, if entitled to interest, issue to the 
128.24 	original holder a notice that interest will cease in 30 days from the date of such notice; and, 
128.25 	if orders thus entitled to priority of payment are not then presented, the next in order of 
128.26 	registry may be paid until such orders are presented. No interest shall be paid on any order, 
128.27 	except upon a warrant drawn by the county auditor for that purpose, giving the number 
128.28 	and the date of the order on account of which the interest warrant is drawn. In any county 
128.29 	in this state now or hereafter having a an estimated market value of all taxable property, 
128.30 	exclusive of money and credits, of not less than $1,033,000,000, the county treasurer, in 
128.31 	order to save payment of interest on county warrants drawn upon a fund in which there 
128.32 	shall be temporarily insufficient money in the treasury to redeem the same, may borrow 
128.33 	temporarily from any other fund in the county treasury in which there is a sufficient balance 
128.34 	to care for the needs of such fund and allow a temporary loan or transfer to any other fund, 
129.1 	and may pay such warrants out of such funds. Any such money so transferred and used in 
129.2 	redeeming such county warrants shall be returned to the fund from which drawn as soon 
129.3 	as money shall come in to the credit of such fund on which any such warrant was drawn 
129.4 	and paid as aforesaid. Any county operating on a cash basis may use a combined form of 
129.5 	warrant or order and check, which, when signed by the chair of the county board and by 
129.6 	the auditor, is an order or warrant for the payment of the claim, and, when countersigned 
129.7 	by the county treasurer, is a check for the payment of the amount thereof.

129.8 	Sec. 60. Minnesota Statutes 2010, section 394.36, subdivision 1, is amended to read:
129.9 		Subdivision 1.Continuation of nonconformity; limitations. Except as provided in 
129.10 	subdivision 2, 3, or 4, any nonconformity, including the lawful use or occupation of land 
129.11 	or premises existing at the time of the adoption of an official control under this chapter, 
129.12 	may be continued, although the use or occupation does not conform to the official control. 
129.13 	If the nonconformity or occupancy is discontinued for a period of more than one year, or 
129.14 	any nonconforming building or structure is destroyed by fire or other peril to the extent of 
129.15 	50 percent of its estimated market value, any subsequent use or occupancy of the land or 
129.16 	premises shall be a conforming use or occupancy.

129.17 	Sec. 61. Minnesota Statutes 2010, section 398A.04, subdivision 8, is amended to read:
129.18 		Subd. 8.Taxation. Before deciding to exercise the power to tax, the authority shall 
129.19 	give six weeks' published notice in all municipalities in the region. If a number of voters 
129.20 	in the region equal to five percent of those who voted for candidates for governor at the 
129.21 	last gubernatorial election present a petition within nine weeks of the first published notice 
129.22 	to the secretary of state requesting that the matter be submitted to popular vote, it shall be 
129.23 	submitted at the next general election. The question prepared shall be:
129.24 	"Shall the regional rail authority have the power to impose a property tax?

129.25		Yes 
........		
129.26		No ........"
		
129.27 	If a majority of those voting on the question approve or if no petition is presented 
129.28 	within the prescribed time the authority may levy a tax at any annual rate not exceeding 
129.29 	0.04835 percent of estimated market value of all taxable property situated within the 
129.30 	municipality or municipalities named in its organization resolution. Its recording officer 
129.31 	shall file, on or before September 15, in the office of the county auditor of each county 
129.32 	in which territory under the jurisdiction of the authority is located a certified copy of the 
129.33 	board of commissioners' resolution levying the tax, and each county auditor shall assess 
129.34 	and extend upon the tax rolls of each municipality named in the organization resolution the 
130.1 	portion of the tax that bears the same ratio to the whole amount that the net tax capacity of 
130.2 	taxable property in that municipality bears to the net tax capacity of taxable property in 
130.3 	all municipalities named in the organization resolution. Collections of the tax shall be 
130.4 	remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991, 
130.5 	the amount levied for light rail transit purposes under this subdivision shall not exceed 75 
130.6 	percent of the amount levied in 1990 for light rail transit purposes under this subdivision.

130.7 	Sec. 62. Minnesota Statutes 2010, section 401.05, subdivision 3, is amended to read:
130.8 		Subd. 3.Leasing. (a) A county or joint powers board of a group of counties 
130.9 	which acquires or constructs and equips or improves facilities under this chapter may, 
130.10 	with the approval of the board of county commissioners of each county, enter into a 
130.11 	lease agreement with a city situated within any of the counties, or a county housing and 
130.12 	redevelopment authority established under chapter 469 or any special law. Under the lease 
130.13 	agreement, the city or county housing and redevelopment authority shall:
130.14 	(1) construct or acquire and equip or improve a facility in accordance with plans 
130.15 	prepared by or at the request of a county or joint powers board of the group of counties 
130.16 	and approved by the commissioner of corrections; and
130.17 	(2) finance the facility by the issuance of revenue bonds.
130.18 	(b) The county or joint powers board of a group of counties may lease the facility 
130.19 	site, improvements, and equipment for a term upon rental sufficient to produce revenue 
130.20 	for the prompt payment of the revenue bonds and all interest accruing on them. Upon 
130.21 	completion of payment, the lessee shall acquire title. The real and personal property 
130.22 	acquired for the facility constitutes a project and the lease agreement constitutes a revenue 
130.23 	agreement as provided in sections 469.152 to 469.165. All proceedings by the city or 
130.24 	county housing and redevelopment authority and the county or joint powers board shall be 
130.25 	as provided in sections 469.152 to 469.165, with the following adjustments:
130.26 	(1) no tax may be imposed upon the property;
130.27 	(2) the approval of the project by the commissioner of employment and economic 
130.28 	development is not required;
130.29 	(3) the Department of Corrections shall be furnished and shall record information 
130.30 	concerning each project as it may prescribe, in lieu of reports required on other projects to 
130.31 	the commissioner of employment and economic development;
130.32 	(4) the rentals required to be paid under the lease agreement shall not exceed in any 
130.33 	year one-tenth of one percent of the estimated market value of property within the county 
130.34 	or group of counties as last equalized before the execution of the lease agreement;
131.1 	(5) the county or group of counties shall provide for payment of all rentals due 
131.2 	during the term of the lease agreement in the manner required in subdivision 4;
131.3 	(6) no mortgage on the facilities shall be granted for the security of the bonds, but 
131.4 	compliance with clause (5) may be enforced as a nondiscretionary duty of the county 
131.5 	or group of counties; and
131.6 	(7) the county or the joint powers board of the group of counties may sublease any 
131.7 	part of the facilities for purposes consistent with their maintenance and operation.

131.8 	Sec. 63. Minnesota Statutes 2010, section 410.32, is amended to read:
131.9 	410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
131.10 	(a) Notwithstanding any contrary provision of other law or charter, a home rule 
131.11 	charter city may, by resolution and without public referendum, issue capital notes subject 
131.12 	to the city debt limit to purchase capital equipment.
131.13 	(b) For purposes of this section, "capital equipment" means:
131.14 	(1) public safety equipment, ambulance and other medical equipment, road 
131.15 	construction and maintenance equipment, and other capital equipment; and
131.16 	(2) computer hardware and software, whether bundled with machinery or equipment 
131.17 	or unbundled.
131.18 	(c) The equipment or software must have an expected useful life at least as long 
131.19 	as the term of the notes.
131.20 	(d) The notes shall be payable in not more than ten years and be issued on terms 
131.21 	and in the manner the city determines. The total principal amount of the capital notes 
131.22 	issued in a fiscal year shall not exceed 0.03 percent of the estimated market value of 
131.23 	taxable property in the city for that year.
131.24 	(e) A tax levy shall be made for the payment of the principal and interest on the 
131.25 	notes, in accordance with section 475.61, as in the case of bonds.
131.26 	(f) Notes issued under this section shall require an affirmative vote of two-thirds of 
131.27 	the governing body of the city.
131.28 	(g) Notwithstanding a contrary provision of other law or charter, a home rule charter 
131.29 	city may also issue capital notes subject to its debt limit in the manner and subject to the 
131.30 	limitations applicable to statutory cities pursuant to section 412.301.

131.31 	Sec. 64. Minnesota Statutes 2010, section 412.221, subdivision 2, is amended to read:
131.32 		Subd. 2.Contracts. The council shall have power to make such contracts as may 
131.33 	be deemed necessary or desirable to make effective any power possessed by the council. 
131.34 	The city may purchase personal property through a conditional sales contract and real 
132.1 	property through a contract for deed under which contracts the seller is confined to the 
132.2 	remedy of recovery of the property in case of nonpayment of all or part of the purchase 
132.3 	price, which shall be payable over a period of not to exceed five years. When the contract 
132.4 	price of property to be purchased by contract for deed or conditional sales contract 
132.5 	exceeds 0.24177 percent of the estimated market value of the city, the city may not enter 
132.6 	into such a contract for at least ten days after publication in the official newspaper of a 
132.7 	council resolution determining to purchase property by such a contract; and, if before the 
132.8 	end of that time a petition asking for an election on the proposition signed by voters equal 
132.9 	to ten percent of the number of voters at the last regular city election is filed with the clerk, 
132.10 	the city may not enter into such a contract until the proposition has been approved by a 
132.11 	majority of the votes cast on the question at a regular or special election.

132.12 	Sec. 65. Minnesota Statutes 2010, section 412.301, is amended to read:
132.13 	412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
132.14 	(a) The council may issue certificates of indebtedness or capital notes subject to the 
132.15 	city debt limits to purchase capital equipment.
132.16 	(b) For purposes of this section, "capital equipment" means:
132.17 	(1) public safety equipment, ambulance and other medical equipment, road 
132.18 	construction and maintenance equipment, and other capital equipment; and
132.19 	(2) computer hardware and software, whether bundled with machinery or equipment 
132.20 	or unbundled.
132.21 	(c) The equipment or software must have an expected useful life at least as long as 
132.22 	the terms of the certificates or notes.
132.23 	(d) Such certificates or notes shall be payable in not more than ten years and shall be 
132.24 	issued on such terms and in such manner as the council may determine.
132.25 	(e) If the amount of the certificates or notes to be issued to finance any such purchase 
132.26 	exceeds 0.25 percent of the estimated market value of taxable property in the city, they 
132.27 	shall not be issued for at least ten days after publication in the official newspaper of 
132.28 	a council resolution determining to issue them; and if before the end of that time, a 
132.29 	petition asking for an election on the proposition signed by voters equal to ten percent 
132.30 	of the number of voters at the last regular municipal election is filed with the clerk, such 
132.31 	certificates or notes shall not be issued until the proposition of their issuance has been 
132.32 	approved by a majority of the votes cast on the question at a regular or special election.
132.33 	(f) A tax levy shall be made for the payment of the principal and interest on such 
132.34 	certificates or notes, in accordance with section 475.61, as in the case of bonds.

133.1 	Sec. 66. Minnesota Statutes 2010, section 428A.02, subdivision 1, is amended to read:
133.2 		Subdivision 1.Ordinance. The governing body of a city may adopt an ordinance 
133.3 	establishing a special service district. Only property that is classified under section 273.13
133.4 	and used for commercial, industrial, or public utility purposes, or is vacant land zoned or 
133.5 	designated on a land use plan for commercial or industrial use and located in the special 
133.6 	service district, may be subject to the charges imposed by the city on the special service 
133.7 	district. Other types of property may be included within the boundaries of the special 
133.8 	service district but are not subject to the levies or charges imposed by the city on the 
133.9 	special service district. If 50 percent or more of the estimated market value of a parcel of 
133.10 	property is classified under section 273.13 as commercial, industrial, or vacant land zoned 
133.11 	or designated on a land use plan for commercial or industrial use, or public utility for the 
133.12 	current assessment year, then the entire taxable market value of the property is subject to a 
133.13 	service charge based on net tax capacity for purposes of sections 428A.01 to 428A.10. 
133.14 	The ordinance shall describe with particularity the area within the city to be included in 
133.15 	the district and the special services to be furnished in the district. The ordinance may not 
133.16 	be adopted until after a public hearing has been held on the question. Notice of the hearing 
133.17 	shall include the time and place of hearing, a map showing the boundaries of the proposed 
133.18 	district, and a statement that all persons owning property in the proposed district that 
133.19 	would be subject to a service charge will be given opportunity to be heard at the hearing. 
133.20 	Within 30 days after adoption of the ordinance under this subdivision, the governing body 
133.21 	shall send a copy of the ordinance to the commissioner of revenue.

133.22 	Sec. 67. Minnesota Statutes 2010, section 430.102, subdivision 2, is amended to read:
133.23 		Subd. 2.Council approval; special tax levy limitation. The council shall receive 
133.24 	and consider the estimate required in subdivision 1 and the items of cost after notice and 
133.25 	hearing before it or its appropriate committee as it considers necessary or expedient, 
133.26 	and shall approve the estimate, with necessary amendments. The amounts of each item 
133.27 	of cost estimated are then appropriated to operate, maintain, and improve the pedestrian 
133.28 	mall during the next fiscal year. The amount of the special tax to be charged under 
133.29 	subdivision 1, clause (3), must not, however, exceed 0.12089 percent of estimated market 
133.30 	value of taxable property in the district. The council shall make any necessary adjustment 
133.31 	in costs of operating and maintaining the district to keep the amount of the tax within 
133.32 	this limitation.

133.33 	Sec. 68. Minnesota Statutes 2010, section 447.10, is amended to read:
133.34 	447.10 TAX LEVY FOR OPERATING AND MAINTAINING HOSPITAL.
134.1 	The governing body of a city of the first class owning a hospital may annually levy 
134.2 	a tax to operate and maintain the hospital. The tax must not exceed 0.00806 percent of 
134.3 	taxable estimated market value.

134.4 	Sec. 69. Minnesota Statutes 2010, section 450.19, is amended to read:
134.5 	450.19 TOURIST CAMPING GROUNDS.
134.6 	A home rule charter or statutory city or town may establish and maintain public 
134.7 	tourist camping grounds. The governing body thereof may acquire by lease, purchase, or 
134.8 	gift, suitable lands located either within or without the corporate limits for use as public 
134.9 	tourist camping grounds and provide for the equipment, operation, and maintenance 
134.10 	of the same. The amount that may be expended for the maintenance, improvement, or 
134.11 	operation of tourist camping grounds shall not exceed, in any year, a sum equal to 0.00806 
134.12 	percent of taxable estimated market value.

134.13 	Sec. 70. Minnesota Statutes 2010, section 450.25, is amended to read:
134.14 	450.25 MUSEUM, GALLERY, OR SCHOOL OF ARTS OR CRAFTS; TAX 
134.15 	LEVY.
134.16 	After the acquisition of any museum, gallery, or school of arts or crafts, the board 
134.17 	of park commissioners of the city in which it is located shall cause to be included in the 
134.18 	annual tax levy upon all the taxable property of the county in which the museum, gallery, 
134.19 	or school of arts or crafts is located, a tax of 0.00846 percent of estimated market value. 
134.20 	The board shall certify the levy to the county auditor and it shall be added to, and collected 
134.21 	with and as part of, the general, real, and personal property taxes, with like penalties and 
134.22 	interest, in case of nonpayment and default, and all provisions of law in respect to the 
134.23 	levy, collection, and enforcement of other taxes shall, so far as applicable, be followed in 
134.24 	respect of these taxes. All of these taxes, penalties, and interest, when collected, shall be 
134.25 	paid to the city treasurer of the city in which is located the museum, gallery, or school 
134.26 	of arts or crafts and credited to a fund to be known as the park museum fund, and shall 
134.27 	be used only for the purposes specified in sections 450.23 to 450.25. Any part of the 
134.28 	proceeds of the levy not expended for the purposes specified in section 450.24 may be 
134.29 	used for the erection of new buildings for the same purposes.

134.30 	Sec. 71. Minnesota Statutes 2010, section 458A.10, is amended to read:
134.31 	458A.10 PROPERTY TAX.
135.1 	The commission shall annually levy a tax not to exceed 0.12089 percent of estimated 
135.2 	market value on all the taxable property in the transit area at a rate sufficient to produce 
135.3 	an amount necessary for the purposes of sections 458A.01 to 458A.15, other than the 
135.4 	payment of principal and interest due on any revenue bonds issued pursuant to section 
135.5 	458A.05. Property taxes levied under this section shall be certified by the commission to 
135.6 	the county auditors of the transit area, extended, assessed, and collected in the manner 
135.7 	provided by law for the property taxes levied by the governing bodies of cities. The 
135.8 	proceeds of the taxes levied under this section shall be remitted by the respective county 
135.9 	treasurers to the treasurer of the commission, who shall credit the same to the funds of 
135.10 	the commission for use for the purposes of sections 458A.01 to 458A.15 subject to any 
135.11 	applicable pledges or limitations on account of tax anticipation certificates or other 
135.12 	specific purposes. At any time after making a tax levy under this section and certifying 
135.13 	it to the county auditors, the commission may issue general obligation certificates of 
135.14 	indebtedness in anticipation of the collection of the taxes as provided by section 412.261.

135.15 	Sec. 72. Minnesota Statutes 2010, section 458A.31, subdivision 1, is amended to read:
135.16 		Subdivision 1.Levy limit. Notwithstanding anything to the contrary contained in 
135.17 	the charter of the city of Duluth, any ordinance thereof, or any statute applicable thereto, 
135.18 	limiting the amount levied in any one year for general or special purposes, the city council 
135.19 	of the city of Duluth shall each year levy a tax in an amount not to exceed 0.07253 
135.20 	percent of taxable estimated market value, by ordinance. An ordinance fixing the levy 
135.21 	shall take effect immediately upon its passage and approval. The proceeds of the levy 
135.22 	shall be paid into the city treasury and deposited in the operating fund provided for in 
135.23 	section 458A.24, subdivision 3.

135.24 	Sec. 73. Minnesota Statutes 2010, section 465.04, is amended to read:
135.25 	465.04 ACCEPTANCE OF GIFTS.
135.26 	Cities of the second, third, or fourth class, having at any time a an estimated
135.27 	market value of not more than $41,000,000, exclusive of money and credits, as officially 
135.28 	equalized by the commissioner of revenue, either under home rule charter or under the 
135.29 	laws of this state, in addition to all other powers possessed by them, hereby are authorized 
135.30 	and empowered to receive and accept gifts and donations for the use and benefit of 
135.31 	such cities and the inhabitants thereof upon terms and conditions to be approved by the 
135.32 	governing bodies of such cities; and such cities are authorized to comply with and perform 
135.33 	such terms and conditions, which may include payment to the donor or donors of interest 
136.1 	on the value of the gift at not exceeding five percent per annum payable annually or 
136.2 	semiannually, during the remainder of the natural life or lives of such donor or donors.

136.3 	Sec. 74. Minnesota Statutes 2010, section 469.033, subdivision 6, is amended to read:
136.4 		Subd. 6.Operation area as taxing district, special tax. All of the territory 
136.5 	included within the area of operation of any authority shall constitute a taxing district for 
136.6 	the purpose of levying and collecting special benefit taxes as provided in this subdivision. 
136.7 	All of the taxable property, both real and personal, within that taxing district shall be 
136.8 	deemed to be benefited by projects to the extent of the special taxes levied under this 
136.9 	subdivision. Subject to the consent by resolution of the governing body of the city in and 
136.10 	for which it was created, an authority may levy a tax upon all taxable property within that 
136.11 	taxing district. The tax shall be extended, spread, and included with and as a part of 
136.12 	the general taxes for state, county, and municipal purposes by the county auditor, to be 
136.13 	collected and enforced therewith, together with the penalty, interest, and costs. As the tax, 
136.14 	including any penalties, interest, and costs, is collected by the county treasurer it shall be 
136.15 	accumulated and kept in a separate fund to be known as the "housing and redevelopment 
136.16 	project fund." The money in the fund shall be turned over to the authority at the same time 
136.17 	and in the same manner that the tax collections for the city are turned over to the city, and 
136.18 	shall be expended only for the purposes of sections 469.001 to 469.047. It shall be paid 
136.19 	out upon vouchers signed by the chair of the authority or an authorized representative. 
136.20 	The amount of the levy shall be an amount approved by the governing body of the city, but 
136.21 	shall not exceed 0.0185 percent of taxable estimated  market value. The authority shall 
136.22 	each year formulate and file a budget in accordance with the budget procedure of the city 
136.23 	in the same manner as required of executive departments of the city or, if no budgets are 
136.24 	required to be filed, by August 1. The amount of the tax levy for the following year shall 
136.25 	be based on that budget.

136.26 	Sec. 75. Minnesota Statutes 2010, section 469.034, subdivision 2, is amended to read:
136.27 		Subd. 2.General obligation revenue bonds. (a) An authority may pledge the 
136.28 	general obligation of the general jurisdiction governmental unit as additional security for 
136.29 	bonds payable from income or revenues of the project or the authority. The authority 
136.30 	must find that the pledged revenues will equal or exceed 110 percent of the principal and 
136.31 	interest due on the bonds for each year. The proceeds of the bonds must be used for a 
136.32 	qualified housing development project or projects. The obligations must be issued and 
136.33 	sold in the manner and following the procedures provided by chapter 475, except the 
136.34 	obligations are not subject to approval by the electors, and the maturities may extend to 
137.1 	not more than 35 years for obligations sold to finance housing for the elderly and 40 years 
137.2 	for other obligations issued under this subdivision. The authority is the municipality for 
137.3 	purposes of chapter 475.
137.4 	(b) The principal amount of the issue must be approved by the governing body of 
137.5 	the general jurisdiction governmental unit whose general obligation is pledged. Public 
137.6 	hearings must be held on issuance of the obligations by both the authority and the general 
137.7 	jurisdiction governmental unit. The hearings must be held at least 15 days, but not more 
137.8 	than 120 days, before the sale of the obligations.
137.9 	(c) The maximum amount of general obligation bonds that may be issued and 
137.10 	outstanding under this section equals the greater of (1) one-half of one percent of the 
137.11 	taxable estimated market value of the general jurisdiction governmental unit whose 
137.12 	general obligation is pledged, or (2) $3,000,000. In the case of county or multicounty 
137.13 	general obligation bonds, the outstanding general obligation bonds of all cities in the 
137.14 	county or counties issued under this subdivision must be added in calculating the limit 
137.15 	under clause (1).
137.16 	(d) "General jurisdiction governmental unit" means the city in which the housing 
137.17 	development project is located. In the case of a county or multicounty authority, the 
137.18 	county or counties may act as the general jurisdiction governmental unit. In the case of 
137.19 	a multicounty authority, the pledge of the general obligation is a pledge of a tax on the 
137.20 	taxable property in each of the counties.
137.21 	(e) "Qualified housing development project" means a housing development project 
137.22 	providing housing either for the elderly or for individuals and families with incomes not 
137.23 	greater than 80 percent of the median family income as estimated by the United States 
137.24 	Department of Housing and Urban Development for the standard metropolitan statistical 
137.25 	area or the nonmetropolitan county in which the project is located. The project must be 
137.26 	owned for the term of the bonds either by the authority or by a limited partnership or other 
137.27 	entity in which the authority or another entity under the sole control of the authority is 
137.28 	the sole general partner and the partnership or other entity must receive (1) an allocation 
137.29 	from the Department of Management and Budget or an entitlement issuer of tax-exempt 
137.30 	bonding authority for the project and a preliminary determination by the Minnesota 
137.31 	Housing Finance Agency or the applicable suballocator of tax credits that the project 
137.32 	will qualify for four percent low-income housing tax credits or (2) a reservation of nine 
137.33 	percent low-income housing tax credits from the Minnesota Housing Finance Agency or a 
137.34 	suballocator of tax credits for the project. A qualified housing development project may 
137.35 	admit nonelderly individuals and families with higher incomes if:
137.36 	(1) three years have passed since initial occupancy;
138.1 	(2) the authority finds the project is experiencing unanticipated vacancies resulting in 
138.2 	insufficient revenues, because of changes in population or other unforeseen circumstances 
138.3 	that occurred after the initial finding of adequate revenues; and
138.4 	(3) the authority finds a tax levy or payment from general assets of the general 
138.5 	jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher 
138.6 	income individuals or families are not admitted.
138.7 	(f) The authority may issue bonds to refund bonds issued under this subdivision in 
138.8 	accordance with section 475.67. The finding of the adequacy of pledged revenues required 
138.9 	by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the 
138.10 	issuance of refunding bonds. This paragraph applies to refunding bonds issued on and 
138.11 	after July 1, 1992.

138.12 	Sec. 76. Minnesota Statutes 2010, section 469.053, subdivision 4, is amended to read:
138.13 		Subd. 4.Mandatory city levy. A city shall, at the request of the port authority, levy 
138.14 	a tax in any year for the benefit of the port authority. The tax must not exceed 0.01813 
138.15 	percent of taxable estimated market value. The amount levied must be paid by the city 
138.16 	treasurer to the treasurer of the port authority, to be spent by the authority.

138.17 	Sec. 77. Minnesota Statutes 2010, section 469.053, subdivision 4a, is amended to read:
138.18 		Subd. 4a.Seaway port authority levy. A levy made under this subdivision shall 
138.19 	replace the mandatory city levy under subdivision 4. A seaway port authority is a special 
138.20 	taxing district under section 275.066 and may levy a tax in any year for the benefit of the 
138.21 	seaway port authority. The tax must not exceed 0.01813 percent of taxable estimated
138.22 	market value. The county auditor shall distribute the proceeds of the property tax levy to 
138.23 	the seaway port authority.

138.24 	Sec. 78. Minnesota Statutes 2010, section 469.053, subdivision 6, is amended to read:
138.25 		Subd. 6.Discretionary city levy. Upon request of a port authority, the port 
138.26 	authority's city may levy a tax to be spent by and for its port authority. The tax must 
138.27 	enable the port authority to carry out efficiently and in the public interest sections 469.048
138.28 	to 469.068 to create and develop industrial development districts. The levy must not be 
138.29 	more than 0.00282 percent of taxable estimated market value. The county treasurer shall 
138.30 	pay the proceeds of the tax to the port authority treasurer. The money may be spent by 
138.31 	the authority in performance of its duties to create and develop industrial development 
138.32 	districts. In spending the money the authority must judge what best serves the public 
138.33 	interest. The levy in this subdivision is in addition to the levy in subdivision 4.

139.1 	Sec. 79. Minnesota Statutes 2010, section 469.107, subdivision 1, is amended to read:
139.2 		Subdivision 1.City tax levy. A city may, at the request of the authority, levy a tax in 
139.3 	any year for the benefit of the authority. The tax must be not more than 0.01813 percent of 
139.4 	taxable estimated market value. The amount levied must be paid by the city treasurer to 
139.5 	the treasurer of the authority, to be spent by the authority.

139.6 	Sec. 80. Minnesota Statutes 2010, section 469.177, subdivision 1, is amended to read:
139.7 		Subdivision 1.Original net tax capacity. (a) Upon or after adoption of a tax 
139.8 	increment financing plan, the auditor of any county in which the district is situated shall, 
139.9 	upon request of the authority, certify the original net tax capacity of the tax increment 
139.10 	financing district and that portion of the district overlying any subdistrict as described in 
139.11 	the tax increment financing plan and shall certify in each year thereafter the amount by 
139.12 	which the original net tax capacity has increased or decreased as a result of a change in tax 
139.13 	exempt status of property within the district and any subdistrict, reduction or enlargement 
139.14 	of the district or changes pursuant to subdivision 4. The auditor shall certify the amount 
139.15 	within 30 days after receipt of the request and sufficient information to identify the parcels 
139.16 	included in the district. The certification relates to the taxes payable year as provided in 
139.17 	subdivision 6.
139.18 	(b) If the classification under section 273.13 of property located in a district changes 
139.19 	to a classification that has a different assessment ratio, the original net tax capacity of that 
139.20 	property must be redetermined at the time when its use is changed as if the property had 
139.21 	originally been classified in the same class in which it is classified after its use is changed.
139.22 	(c) The amount to be added to the original net tax capacity of the district as a result 
139.23 	of previously tax exempt real property within the district becoming taxable equals the net 
139.24 	tax capacity of the real property as most recently assessed pursuant to section 273.18 or, if 
139.25 	that assessment was made more than one year prior to the date of title transfer rendering 
139.26 	the property taxable, the net tax capacity assessed by the assessor at the time of the 
139.27 	transfer. If improvements are made to tax exempt property after the municipality approves 
139.28 	the district and before the parcel becomes taxable, the assessor shall, at the request of 
139.29 	the authority, separately assess the estimated market value of the improvements. If the 
139.30 	property becomes taxable, the county auditor shall add to original net tax capacity, the net 
139.31 	tax capacity of the parcel, excluding the separately assessed improvements. If substantial 
139.32 	taxable improvements were made to a parcel after certification of the district and if the 
139.33 	property later becomes tax exempt, in whole or part, as a result of the authority acquiring 
139.34 	the property through foreclosure or exercise of remedies under a lease or other revenue 
139.35 	agreement or as a result of tax forfeiture, the amount to be added to the original net tax 
140.1 	capacity of the district as a result of the property again becoming taxable is the amount 
140.2 	of the parcel's value that was included in original net tax capacity when the parcel was 
140.3 	first certified. The amount to be added to the original net tax capacity of the district as a 
140.4 	result of enlargements equals the net tax capacity of the added real property as most 
140.5 	recently certified by the commissioner of revenue as of the date of modification of the tax 
140.6 	increment financing plan pursuant to section 469.175, subdivision 4.
140.7 	(d) If the net tax capacity of a property increases because the property no longer 
140.8 	qualifies under the Minnesota Agricultural Property Tax Law, section 273.111; the 
140.9 	Minnesota Open Space Property Tax Law, section 273.112; or the Metropolitan 
140.10 	Agricultural Preserves Act, chapter 473H, or because platted, unimproved property is 
140.11 	improved or market value is increased after approval of the plat under section 273.11, 
140.12 	subdivision 14, 14a, or 14b, the increase in net tax capacity must be added to the original 
140.13 	net tax capacity. If the net tax capacity of a property increases because the property 
140.14 	no longer qualifies for the homestead market value exclusion under section 273.13, 
140.15 	subdivision 35, the increase in net tax capacity must be added to the original net tax 
140.16 	capacity if the original construction of the affected home was completed before the date 
140.17 	the assessor certified the original net tax capacity of the district.
140.18 	(e) The amount to be subtracted from the original net tax capacity of the district as a 
140.19 	result of previously taxable real property within the district becoming tax exempt or 
140.20 	qualifying in whole or part for an exclusion from taxable market value, or a reduction in 
140.21 	the geographic area of the district, shall be the amount of original net tax capacity initially 
140.22 	attributed to the property becoming tax exempt, being excluded from taxable market 
140.23 	value, or being removed from the district. If the net tax capacity of property located within 
140.24 	the tax increment financing district is reduced by reason of a court-ordered abatement, 
140.25 	stipulation agreement, voluntary abatement made by the assessor or auditor or by order 
140.26 	of the commissioner of revenue, the reduction shall be applied to the original net tax 
140.27 	capacity of the district when the property upon which the abatement is made has not been 
140.28 	improved since the date of certification of the district and to the captured net tax capacity 
140.29 	of the district in each year thereafter when the abatement relates to improvements made 
140.30 	after the date of certification. The county auditor may specify reasonable form and content 
140.31 	of the request for certification of the authority and any modification thereof pursuant to 
140.32 	section 469.175, subdivision 4.
140.33 	(f) If a parcel of property contained a substandard building or improvements 
140.34 	described in section 469.174, subdivision 10, paragraph (e), that were demolished or 
140.35 	removed and if the authority elects to treat the parcel as occupied by a substandard 
140.36 	building under section 469.174, subdivision 10, paragraph (b), or by improvements under 
141.1 	section 469.174, subdivision 10, paragraph (e), the auditor shall certify the original net tax 
141.2 	capacity of the parcel using the greater of (1) the current net tax capacity of the parcel, or 
141.3 	(2) the estimated market value of the parcel for the year in which the building or other 
141.4 	improvements were demolished or removed, but applying the class rates for the current 
141.5 	year.
141.6 	(g) For a redevelopment district qualifying under section 469.174, subdivision 10, 
141.7 	paragraph (a), clause (4), as a qualified disaster area, the auditor shall certify the value of 
141.8 	the land as the original tax capacity for any parcel in the district that contains a building 
141.9 	that suffered substantial damage as a result of the disaster or emergency.

141.10 	EFFECTIVE DATE. This section is effective the day following final enactment 
141.11 	and applies to all districts, regardless of when the request for certification was made, and 
141.12 	to computation of increment beginning with taxes payable in 2013, provided that the 
141.13 	adjustments to original tax capacity required by this section apply only to exclusions 
141.14 	that reduced taxable market value beginning with taxes payable in 2012 or thereafter, 
141.15 	regardless of when the law authorizing the exclusion became effective.

141.16 	Sec. 81. Minnesota Statutes 2010, section 469.180, subdivision 2, is amended to read:
141.17 		Subd. 2.Tax levies. Notwithstanding any law, the county board of any county may 
141.18 	appropriate from the general revenue fund a sum not to exceed a county levy of 0.00080 
141.19 	percent of taxable estimated market value to carry out the purposes of this section.

141.20 	Sec. 82. Minnesota Statutes 2010, section 469.187, is amended to read:
141.21 	469.187 FIRST CLASS CITY SPENDING FOR PUBLICITY; PUBLICITY 
141.22 	BOARD.
141.23 	Any city of the first class may expend money for city publicity purposes. The city 
141.24 	may levy a tax, not exceeding 0.00080 percent of taxable estimated market value. The 
141.25 	proceeds of the levy shall be expended in the manner and for the city publicity purposes 
141.26 	the council directs. The council may establish and provide for a publicity board or bureau 
141.27 	to administer the fund, subject to the conditions and limitations the council prescribes 
141.28 	by ordinance.

141.29 	Sec. 83. Minnesota Statutes 2010, section 469.206, is amended to read:
141.30 	469.206 HAZARDOUS PROPERTY PENALTY.
141.31 	A city may assess a penalty up to one percent of the estimated market value of 
141.32 	real property, including any building located within the city that the city determines to 
142.1 	be hazardous as defined in section 463.15, subdivision 3. The city shall send a written 
142.2 	notice to the address to which the property tax statement is sent at least 90 days before it 
142.3 	may assess the penalty. If the owner of the property has not paid the penalty or fixed the 
142.4 	property within 90 days after receiving notice of the penalty, the penalty is considered 
142.5 	delinquent and is increased by 25 percent each 60 days the penalty is not paid and the 
142.6 	property remains hazardous. For the purposes of this section, a penalty that is delinquent 
142.7 	is considered a delinquent property tax and subject to chapters 279, 280, and 281, in the 
142.8 	same manner as delinquent property taxes.

142.9 	Sec. 84. Minnesota Statutes 2010, section 471.24, is amended to read:
142.10 	471.24 TOWNS, STATUTORY CITIES; JOINT MAINTENANCE OF 
142.11 	CEMETERY.
142.12 	Where a statutory city or town owns and maintains an established cemetery or burial 
142.13 	ground, either within or without the municipal limits, the statutory city or town may, by 
142.14 	mutual agreement with contiguous statutory cities and towns, each having a an estimated
142.15 	market value of not less than $2,000,000, join together in the maintenance of such public 
142.16 	cemetery or burial ground for the use of the inhabitants of each of such municipalities; and 
142.17 	each such municipality is hereby authorized, by action of its council or governing body, 
142.18 	to levy a tax or make an appropriation for the annual support and maintenance of such 
142.19 	cemetery or burial ground; provided, the amount thus appropriated by each municipality 
142.20 	shall not exceed a total of $10,000 in any one year.

142.21 	Sec. 85. Minnesota Statutes 2010, section 471.571, subdivision 1, is amended to read:
142.22 		Subdivision 1.Application. This section applies to each city in which the net tax 
142.23 	capacity of real and personal property consists in part of iron ore or lands containing 
142.24 	taconite or semitaconite and in which the total taxable estimated market value of real 
142.25 	and personal property exceeds $2,500,000.

142.26 	Sec. 86. Minnesota Statutes 2010, section 471.571, subdivision 2, is amended to read:
142.27 		Subd. 2.Creation of fund, tax levy. The governing body of the city may create a 
142.28 	permanent improvement and replacement fund to be maintained by an annual tax levy. 
142.29 	The governing body may levy a tax in excess of any charter limitation for the support of 
142.30 	the permanent improvement and replacement fund, but not exceeding the following:
142.31 	(a) in cities having a population of not more than 500 inhabitants, the lesser of $20 
142.32 	per capita or 0.08059 percent of taxable estimated market value;
143.1 	(b) in cities having a population of more than 500 and less than 2500 2,500, the 
143.2 	greater of $12.50 per capita or $10,000 but not exceeding 0.08059 percent of taxable
143.3 	estimated market value;
143.4 	(c) in cities having a population of more than 2500 2,500 or more inhabitants, 
143.5 	the greater of $10 per capita or $31,500 but not exceeding 0.08059 percent of taxable
143.6 	estimated market value.

143.7 	Sec. 87. Minnesota Statutes 2010, section 471.73, is amended to read:
143.8 	471.73 ACCEPTANCE OF PROVISIONS.
143.9 	In the case of any city within the class specified in section 471.72 having a an 
143.10 	estimated  market value, as defined in section 471.72, in excess of $37,000,000; and in the 
143.11 	case of any statutory city within such class having a an estimated market value, as defined 
143.12 	in section 471.72, of less than $5,000,000; and in the case of any statutory city within such 
143.13 	class which is governed by Laws 1933, chapter 211, or Laws 1937, chapter 356; and in 
143.14 	the case of any statutory city within such class which is governed by Laws 1929, chapter 
143.15 	208, and has a an estimated market value of less than $83,000,000; and in the case of 
143.16 	any school district within such class having a an estimated market value, as defined in 
143.17 	section 471.72, of more than $54,000,000; and in the case of all towns within said class; 
143.18 	sections 471.71 to 471.83 apply only if the governing body of the city or statutory city, the 
143.19 	board of the school district, or the town board of the town shall have adopted a resolution 
143.20 	determining to issue bonds under the provisions of sections 471.71 to 471.83 or to go 
143.21 	upon a cash basis in accordance with the provisions thereof.

143.22 	Sec. 88. Minnesota Statutes 2010, section 473.325, subdivision 2, is amended to read:
143.23 		Subd. 2.Chapter 475 applies; exceptions. The Metropolitan Council shall sell and 
143.24 	issue the bonds in the manner provided in chapter 475, and shall have the same powers 
143.25 	and duties as a municipality issuing bonds under that law, except that the approval of a 
143.26 	majority of the electors shall not be required and the net debt limitations shall not apply. 
143.27 	The terms of each series of bonds shall be fixed so that the amount of principal and interest 
143.28 	on all outstanding and undischarged bonds, together with the bonds proposed to be issued, 
143.29 	due in any year shall not exceed 0.01209 percent of estimated market value of all taxable 
143.30 	property in the metropolitan area as last finally equalized prior to a proposed issue. The 
143.31 	bonds shall be secured in accordance with section 475.61, subdivision 1, and any taxes 
143.32 	required for their payment shall be levied by the council, shall not affect the amount or rate 
143.33 	of taxes which may be levied by the council for other purposes, shall be spread against all 
143.34 	taxable property in the metropolitan area and shall not be subject to limitation as to rate or 
144.1 	amount. Any taxes certified by the council to the county auditors for collection shall be 
144.2 	reduced by the amount received by the council from the commissioner of management and 
144.3 	budget or the federal government for the purpose of paying the principal and interest on 
144.4 	bonds to which the levy relates. The council shall certify the fact and amount of all money 
144.5 	so received to the county auditors, and the auditors shall reduce the levies previously made 
144.6 	for the bonds in the manner and to the extent provided in section 475.61, subdivision 3.

144.7 	Sec. 89. Minnesota Statutes 2010, section 473.629, is amended to read:
144.8 	473.629 VALUE OF PROPERTY FOR BOND ISSUES BY SCHOOL 
144.9 	DISTRICTS.
144.10 	As to any lands to be detached from any school district under the provisions hereof
144.11 	section 473.625, notwithstanding such prospective the detachment, the estimated market 
144.12 	value of such the detached lands and the net tax capacity of taxable properties now located 
144.13 	therein or thereon shall be and on the lands on the date of the detachment constitute 
144.14 	from and after the date of the enactment hereof a part of the estimated market value of 
144.15 	properties upon the basis of which such used to calculate the net debt limit of the school 
144.16 	district may issue its bonds,. The value of such the lands for such purpose to beand other 
144.17 	taxable properties for purposes of the school district's net debt limit are 33-1/3 percent of 
144.18 	the estimated market value thereof as determined and certified by said the assessor to said
144.19 	the school district, and it shall be the duty of such the assessor annually on or before the 
144.20 	tenth day of October from and after the passage hereof, to so of each year, shall determine 
144.21 	and certify that value; provided, however, that the value of such the detached lands and 
144.22 	such taxable properties shall never exceed 20 percent of the estimated market value of 
144.23 	all properties constituting and making up the basis aforesaid used to calculate the net 
144.24 	debt limit of the school district.

144.25 	Sec. 90. Minnesota Statutes 2010, section 473.661, subdivision 3, is amended to read:
144.26 		Subd. 3.Levy limit. In any budget certified by the commissioners under this 
144.27 	section, the amount included for operation and maintenance shall not exceed an amount 
144.28 	which, when extended against the property taxable therefor under section 473.621, 
144.29 	subdivision 5, will require a levy at a rate of 0.00806 percent of estimated market value. 
144.30 	Taxes levied by the corporation shall not affect the amount or rate of taxes which may 
144.31 	be levied by any other local government unit within the metropolitan area under the 
144.32 	provisions of any charter.

144.33 	Sec. 91. Minnesota Statutes 2010, section 473.667, subdivision 9, is amended to read:
145.1 		Subd. 9.Additional taxes. Nothing herein shall prevent the commission from 
145.2 	levying a tax not to exceed 0.00121 percent of estimated market value on taxable property 
145.3 	within its taxing jurisdiction, in addition to any levies found necessary for the debt 
145.4 	service fund authorized by section 473.671. Nothing herein shall prevent the levy and 
145.5 	appropriation for purposes of the commission of any other tax on property or on any 
145.6 	income, transaction, or privilege, when and if authorized by law. All collections of any 
145.7 	taxes so levied shall be included in the revenues appropriated for the purposes referred 
145.8 	to in this section, unless otherwise provided in the law authorizing the levies; but no 
145.9 	covenant as to the continuance or as to the rate and amount of any such levy shall be made 
145.10 	with the holders of the commission's bonds unless specifically authorized by law.

145.11 	Sec. 92. Minnesota Statutes 2010, section 473.671, is amended to read:
145.12 	473.671 LIMIT OF TAX LEVY.
145.13 	The taxes levied against the property of the metropolitan area in any one year shall 
145.14 	not exceed 0.00806 percent of taxable estimated market value, exclusive of taxes levied 
145.15 	to pay the principal or interest on any bonds or indebtedness of the city issued under 
145.16 	Laws 1943, chapter 500, and exclusive of any taxes levied to pay the share of the city for 
145.17 	payments on bonded indebtedness of the corporation provided for in Laws 1943, chapter 
145.18 	500. The levy of taxes authorized in Laws 1943, chapter 500, shall be in addition to the 
145.19 	maximum rate allowed to be levied to defray the cost of government under the provisions 
145.20 	of the charter of any city affected by Laws 1943, chapter 500.

145.21 	Sec. 93. Minnesota Statutes 2010, section 473.711, subdivision 2a, is amended to read:
145.22 		Subd. 2a.Tax levy. (a) The commission may levy a tax on all taxable property in 
145.23 	the district as defined in section 473.702 to provide funds for the purposes of sections 
145.24 	473.701 to 473.716. The tax shall not exceed the property tax levy limitation determined 
145.25 	in this subdivision. A participating county may agree to levy an additional tax to be used 
145.26 	by the commission for the purposes of sections 473.701 to 473.716 but the sum of the 
145.27 	county's and commission's taxes may not exceed the county's proportionate share of 
145.28 	the property tax levy limitation determined under this subdivision based on the ratio of 
145.29 	its total net tax capacity to the total net tax capacity of the entire district as adjusted by 
145.30 	section 270.12, subdivision 3. The auditor of each county in the district shall add the 
145.31 	amount of the levy made by the district to other taxes of the county for collection by 
145.32 	the county treasurer with other taxes. When collected, the county treasurer shall make 
145.33 	settlement of the tax with the district in the same manner as other taxes are distributed 
145.34 	to political subdivisions. No county shall levy any tax for mosquito, disease vectoring 
146.1 	tick, and black gnat (Simuliidae) control except under this section. The levy shall be in 
146.2 	addition to other taxes authorized by law.
146.3 	(b) The property tax levied by the Metropolitan Mosquito Control Commission shall 
146.4 	not exceed the product of (i) the commission's property tax levy limitation for the previous 
146.5 	year determined under this subdivision multiplied by (ii) an index for market valuation 
146.6 	changes equal to the total estimated market valuation value of all taxable property for the 
146.7 	current tax payable year located within the district plus any area that has been added to the 
146.8 	district since the previous year, divided by the total estimated market valuation value of all 
146.9 	taxable property located within the district for the previous taxes payable year.
146.10 	(c) For the purpose of determining the commission's property tax levy limitation 
146.11 	under this subdivision, "total market valuation" means the total market valuation of all 
146.12 	taxable property within the district without valuation adjustments for fiscal disparities 
146.13 	(chapter 473F), tax increment financing (sections 469.174 to 469.179), and high voltage 
146.14 	transmission lines (section 273.425).

146.15 	Sec. 94. Minnesota Statutes 2010, section 473F.02, subdivision 12, is amended to read:
146.16 		Subd. 12.Adjusted market value. "Adjusted market value" of real and personal 
146.17 	property within a municipality means the assessor's estimated taxable market value, 
146.18 	as defined in section 272.03, of all real and personal property, including the value of 
146.19 	manufactured housing, within the municipality, adjusted for sales ratios in a manner 
146.20 	similar to the adjustments made to city and town net tax capacities . For purposes 
146.21 	of sections 473F.01 to 473F.13, the commissioner of revenue shall annually make 
146.22 	determinations and reports with respect to each municipality which are comparable to 
146.23 	those it makes for school districts under section 127A.48, subdivisions 1 to 6, in the same 
146.24 	manner and at the same times as are prescribed by the subdivisions. The commissioner 
146.25 	of revenue shall annually determine, for each municipality, information comparable to 
146.26 	that required by section 475.53, subdivision 4, for school districts, as soon as practicable 
146.27 	after it becomes available. The commissioner of revenue shall then compute the equalized 
146.28 	market value of property within each municipality using the aggregate sales ratios from 
146.29 	the Department of Revenue's sales ratio study.

146.30 	Sec. 95. Minnesota Statutes 2010, section 473F.02, subdivision 14, is amended to read:
146.31 		Subd. 14.Fiscal capacity. "Fiscal capacity" of a municipality means its valuation
146.32 	adjusted market value, determined as of January 2 of any year, divided by its population, 
146.33 	determined as of a date in the same year.

147.1 	Sec. 96. Minnesota Statutes 2010, section 473F.02, subdivision 15, is amended to read:
147.2 		Subd. 15.Average fiscal capacity. "Average fiscal capacity" of municipalities 
147.3 	means the sum of the valuations adjusted market values of all municipalities, determined 
147.4 	as of January 2 of any year, divided by the sum of their populations, determined as of 
147.5 	a date in the same year.

147.6 	Sec. 97. Minnesota Statutes 2010, section 473F.02, subdivision 23, is amended to read:
147.7 		Subd. 23.Net tax capacity. "Net tax capacity" means the taxable market value of 
147.8 	real and personal property multiplied by its net tax capacity rates in section 273.13.

147.9 	Sec. 98. Minnesota Statutes 2010, section 475.521, subdivision 4, is amended to read:
147.10 		Subd. 4.Limitations on amount. A municipality may not issue bonds under this 
147.11 	section if the maximum amount of principal and interest to become due in any year on 
147.12 	all the outstanding bonds issued under this section, including the bonds to be issued, 
147.13 	will equal or exceed 0.16 percent of the taxable estimated market value of property 
147.14 	in the municipality. Calculation of the limit must be made using the taxable estimated
147.15 	market value for the taxes payable year in which the obligations are issued and sold. In 
147.16 	the case of a municipality with a population of 2,500 or more, the bonds are subject to 
147.17 	the net debt limits under section 475.53. In the case of a shared facility in which more 
147.18 	than one municipality participates, upon compliance by each participating municipality 
147.19 	with the requirements of subdivision 2, the limitations in this subdivision and the net debt 
147.20 	represented by the bonds shall be allocated to each participating municipality in proportion 
147.21 	to its required financial contribution to the financing of the shared facility, as set forth in 
147.22 	the joint powers agreement relating to the shared facility. This section does not limit the 
147.23 	authority to issue bonds under any other special or general law.

147.24 	Sec. 99. Minnesota Statutes 2010, section 475.53, subdivision 1, is amended to read:
147.25 		Subdivision 1.Generally. Except as otherwise provided in sections 475.51 to 
147.26 	475.74, no municipality, except a school district or a city of the first class, shall incur or be 
147.27 	subject to a net debt in excess of three percent of the estimated market value of taxable 
147.28 	property in the municipality.

147.29 	Sec. 100. Minnesota Statutes 2010, section 475.53, subdivision 3, is amended to read:
147.30 		Subd. 3.Cities first class. Unless its charter permits a greater net debt a city of 
147.31 	the first class may not incur a net debt in excess of two percent of the estimated market 
147.32 	value of all taxable property therein. If the charter of the city permits a net debt of the city 
148.1 	in excess of two percent of its valuation, it may not incur a net debt in excess of 3-2/3 
148.2 	percent of the estimated market value of the taxable property therein.
148.3 	The county auditor, at the time of preparing the tax list of the city, shall compile a 
148.4 	statement setting forth the total net tax capacity and the total estimated market value of 
148.5 	each class of taxable property in such city for such year.

148.6 	Sec. 101. Minnesota Statutes 2010, section 475.53, subdivision 4, is amended to read:
148.7 		Subd. 4.School districts. Except as otherwise provided by law, no school district 
148.8 	shall be subject to a net debt in excess of 15 percent of the actual estimated  market value 
148.9 	of all taxable property situated within its corporate limits, as computed in accordance with 
148.10 	this subdivision. The county auditor of each county containing taxable real or personal 
148.11 	property situated within any school district shall certify to the district upon request the 
148.12 	estimated market value of all such property. Whenever the commissioner of revenue, in 
148.13 	accordance with section 127A.48, subdivisions 1 to 6, has determined that the net tax 
148.14 	capacity of any district furnished by county auditors is not based upon theadjusted market 
148.15 	value of taxable property in the district exceeds the estimated market value of property 
148.16 	within the district, the commissioner of revenue shall certify to the district upon request 
148.17 	the ratio most recently ascertained to exist between such the estimated market  value and 
148.18 	the actual adjusted market value of property within the district., and the actual market 
148.19 	value of property within a district, on which its debt limit under this subdivision is will 
148.20 	be  based, is (a) the value certified by the county auditors, or (b) this on the estimated 
148.21 	market value divided by the ratio certified by the commissioner of revenue, whichever 
148.22 	results in a higher value.

148.23 	Sec. 102. Minnesota Statutes 2010, section 475.58, subdivision 2, is amended to read:
148.24 		Subd. 2.Funding, refunding. Any county, city, town, or school district whose 
148.25 	outstanding gross debt, including all items referred to in section 475.51, subdivision 
148.26 	4, exceed in amount 1.62 percent of its estimated market value may issue bonds under 
148.27 	this subdivision for the purpose of funding or refunding such indebtedness or any part 
148.28 	thereof. A list of the items of indebtedness to be funded or refunded shall be made by the 
148.29 	recording officer and treasurer and filed in the office of the recording officer. The initial 
148.30 	resolution of the governing body shall refer to this subdivision as authority for the issue, 
148.31 	state the amount of bonds to be issued and refer to the list of indebtedness to be funded or 
148.32 	refunded. This resolution shall be published once each week for two successive weeks 
148.33 	in a legal newspaper published in the municipality or if there be no such newspaper, in 
148.34 	a legal newspaper published in the county seat. Such bonds may be issued without the 
149.1 	submission of the question of their issue to the electors unless within ten days after the 
149.2 	second publication of the resolution a petition requesting such election signed by ten or 
149.3 	more voters who are taxpayers of the municipality, shall be filed with the recording officer. 
149.4 	In event such petition is filed, no bonds shall be issued hereunder unless authorized by a 
149.5 	majority of the electors voting on the question.

149.6 	Sec. 103. Minnesota Statutes 2010, section 475.73, subdivision 1, is amended to read:
149.7 		Subdivision 1.May purchase these bonds; conditions. Obligations sold under the 
149.8 	provisions of section 475.60 may be purchased by the State Board of Investment if the 
149.9 	obligations meet the requirements of section 11A.24, subdivision 2, upon the approval of 
149.10 	the attorney general as to form and execution of the application therefor, and under rules 
149.11 	as the board may specify, and the state board shall have authority to purchase the same 
149.12 	to an amount not exceeding 3.63 percent of the estimated market value of the taxable 
149.13 	property of the municipality, according to the last preceding assessment. The obligations 
149.14 	shall not run for a shorter period than one year, nor for a longer period than 30 years and 
149.15 	shall bear interest at a rate to be fixed by the state board but not less than two percent per 
149.16 	annum. Forthwith upon the delivery to the state of Minnesota of any obligations issued by 
149.17 	virtue thereof, the commissioner of management and budget shall certify to the respective 
149.18 	auditors of the various counties wherein are situated the municipalities issuing the same, 
149.19 	the number, denomination, amount, rate of interest and date of maturity of each obligation.

149.20 	Sec. 104. Minnesota Statutes 2011 Supplement, section 477A.011, subdivision 20, 
149.21 	is amended to read:
149.22 		Subd. 20.City net tax capacity. "City net tax capacity" means (1) the net tax 
149.23 	capacity computed using the net tax capacity rates in section 273.13 for taxes payable 
149.24 	in the year of the aid distribution, and the market values, after the exclusion in section 
149.25 	273.13, subdivision 35, for taxes payable in the year prior to the aid distribution plus (2) 
149.26 	a city's fiscal disparities distribution tax capacity under section 276A.06, subdivision 2, 
149.27 	paragraph (b), or 473F.08, subdivision 2, paragraph (b), for taxes payable in the year prior 
149.28 	to that for which aids are being calculated. The market value utilized in computing city 
149.29 	net tax capacity shall be reduced by the sum of (1) a city's market value of commercial 
149.30 	industrial property as defined in section 276A.01, subdivision 3, or 473F.02, subdivision 3, 
149.31 	multiplied by the ratio determined pursuant to section 276A.06, subdivision 2, paragraph 
149.32 	(a), or 473F.08, subdivision 2, paragraph (a), (2) the market value of the captured value 
149.33 	of tax increment financing districts as defined in section 469.177, subdivision 2, and (3) 
149.34 	the market value of transmission lines deducted from a city's total net tax capacity under 
150.1 	section 273.425. The city net tax capacity will be computed using equalized market values
150.2 	the city's adjusted net tax capacity under section 273.1325.

150.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

150.4 	Sec. 105. Minnesota Statutes 2010, section 477A.011, subdivision 32, is amended to 
150.5 	read:
150.6 		Subd. 32.Commercial industrial percentage. "Commercial industrial percentage" 
150.7 	for a city is 100 times the sum of the estimated market values of all real property in the 
150.8 	city classified as class 3 under section 273.13, subdivision 24, excluding public utility 
150.9 	property, to the total estimated market value of all taxable real and personal property in 
150.10 	the city. The estimated market values are the amounts computed before any adjustments 
150.11 	for fiscal disparities under section 276A.06 or 473F.08. The estimated market values 
150.12 	used for this subdivision are not equalized.

150.13 	EFFECTIVE DATE. This section is effective for aids payable in 2014 and 
150.14 	thereafter.

150.15 	Sec. 106. Minnesota Statutes 2010, section 477A.0124, subdivision 2, is amended to 
150.16 	read:
150.17 		Subd. 2.Definitions. (a) For the purposes of this section, the following terms 
150.18 	have the meanings given them.
150.19 	(b) "County program aid" means the sum of "county need aid," "county tax base 
150.20 	equalization aid," and "county transition aid."
150.21 	(c) "Age-adjusted population" means a county's population multiplied by the county 
150.22 	age index.
150.23 	(d) "County age index" means the percentage of the population over age 65 within 
150.24 	the county divided by the percentage of the population over age 65 within the state, except 
150.25 	that the age index for any county may not be greater than 1.8 nor less than 0.8.
150.26 	(e) "Population over age 65" means the population over age 65 established as of 
150.27 	July 15 in an aid calculation year by the most recent federal census, by a special census 
150.28 	conducted under contract with the United States Bureau of the Census, by a population 
150.29 	estimate made by the Metropolitan Council, or by a population estimate of the state 
150.30 	demographer made pursuant to section 4A.02, whichever is the most recent as to the stated 
150.31 	date of the count or estimate for the preceding calendar year and which has been certified 
150.32 	to the commissioner of revenue on or before July 15 of the aid calculation year. A revision 
150.33 	to an estimate or count is effective for these purposes only if certified to the commissioner 
151.1 	on or before July 15 of the aid calculation year. Clerical errors in the certification or use of 
151.2 	estimates and counts established as of July 15 in the aid calculation year are subject to 
151.3 	correction within the time periods allowed under section 477A.014.
151.4 	(f) "Part I crimes" means the three-year average annual number of Part I crimes 
151.5 	reported for each county by the Department of Public Safety for the most recent years 
151.6 	available. By July 1 of each year, the commissioner of public safety shall certify to the 
151.7 	commissioner of revenue the number of Part I crimes reported for each county for the 
151.8 	three most recent calendar years available.
151.9 	(g) "Households receiving food stamps" means the average monthly number of 
151.10 	households receiving food stamps for the three most recent years for which data is 
151.11 	available. By July 1 of each year, the commissioner of human services must certify to the 
151.12 	commissioner of revenue the average monthly number of households in the state and in 
151.13 	each county that receive food stamps, for the three most recent calendar years available.
151.14 	(h) "County net tax capacity" means the net tax capacity of the county, computed 
151.15 	analogously to city net tax capacity under section 477A.011, subdivision 20 county's 
151.16 	adjusted net tax capacity under section 273.1325.

151.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

151.18 	Sec. 107. Minnesota Statutes 2010, section 641.23, is amended to read:
151.19 	641.23 FUNDS; HOW PROVIDED.
151.20 	Before any contract is made for the erection of a county jail, sheriff's residence, or 
151.21 	both, the county board shall either levy a sufficient tax to provide the necessary funds, or 
151.22 	issue county bonds therefor in accordance with the provisions of chapter 475, provided 
151.23 	that no election is required if the amount of all bonds issued for this purpose and interest 
151.24 	on them which are due and payable in any year does not exceed an amount equal to 
151.25 	0.09671 percent of estimated market value of taxable property within the county, as last 
151.26 	determined before the bonds are issued.

151.27 	Sec. 108. Minnesota Statutes 2010, section 641.24, is amended to read:
151.28 	641.24 LEASING.
151.29 	The county may, by resolution of the county board, enter into a lease agreement with 
151.30 	any statutory or home rule charter city situated within the county, or a county housing and 
151.31 	redevelopment authority established pursuant to chapter 469 or any special law whereby 
151.32 	the city or county housing and redevelopment authority will construct a jail or other law 
151.33 	enforcement facilities for the county sheriff, deputy sheriffs, and other employees of the 
152.1 	sheriff and other law enforcement agencies, in accordance with plans prepared by or at 
152.2 	the request of the county board and, when required, approved by the commissioner of 
152.3 	corrections and will finance it by the issuance of revenue bonds, and the county may lease 
152.4 	the site and improvements for a term and upon rentals sufficient to produce revenue for the 
152.5 	prompt payment of the bonds and all interest accruing thereon and, upon completion of 
152.6 	payment, will acquire title thereto. The real and personal property acquired for the jail 
152.7 	shall constitute a project and the lease agreement shall constitute a revenue agreement 
152.8 	as contemplated in chapter 469, and all proceedings shall be taken by the city or county 
152.9 	housing and redevelopment authority and the county in the manner and with the force and 
152.10 	effect provided in chapter 469; provided that:
152.11 	(1) no tax shall be imposed upon or in lieu of a tax upon the property;
152.12 	(2) the approval of the project by the commissioner of commerce shall not be 
152.13 	required;
152.14 	(3) the Department of Corrections shall be furnished and shall record such 
152.15 	information concerning each project as it may prescribe;
152.16 	(4) the rentals required to be paid under the lease agreement shall not exceed in any 
152.17 	year one-tenth of one percent of the estimated market value of property within the county, 
152.18 	as last finally equalized before the execution of the agreement;
152.19 	(5) the county board shall provide for the payment of all rentals due during the term 
152.20 	of the lease, in the manner required in section 641.264, subdivision 2;
152.21 	(6) no mortgage on the property shall be granted for the security of the bonds, but 
152.22 	compliance with clause (5) hereof may be enforced as a nondiscretionary duty of the 
152.23 	county board; and
152.24 	(7) the county board may sublease any part of the jail property for purposes consistent 
152.25 	with the maintenance and operation of a county jail or other law enforcement facility.

152.26 	Sec. 109. Minnesota Statutes 2010, section 645.44, is amended by adding a subdivision 
152.27 	to read:
152.28 		Subd. 20.Estimated market value. When used in determining or calculating a 
152.29 	limit on taxation, spending, state aid amounts, or debt, bond, certificate of indebtedness, or 
152.30 	capital note issuance by or for a local government unit, "estimated market value" has the 
152.31 	meaning given in section 273.032. 

152.32 	Sec. 110. REVISOR'S INSTRUCTION.
 153.1 	The revisor of statutes shall recodify Minnesota Statutes, section 127A.48, 
153.2 	subdivisions 1 to 6, as section 273.1325, subdivisions 1 to 6, and change all 
153.3 	cross-references to the affected subdivisions accordingly.

153.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

153.5 	Sec. 111.  REPEALER.
 153.6 	Minnesota Statutes 2010, sections 273.11, subdivision 1a; 276A.01, subdivision 
153.7 	11; 276A.06, subdivision 10; 473F.02, subdivision 13; 473F.08, subdivision 10; and 
153.8 	477A.011, subdivision 21, are repealed.

153.9 	Sec. 112. EFFECTIVE DATE.
 153.10 	Unless otherwise specifically provided, this article is effective the day following 
153.11 	final enactment for purposes of limits on net debt, the issuance of bonds, certificates of 
153.12 	indebtedness, and capital notes and is effective beginning for taxes payable in 2013 for 
153.13 	all other purposes.

153.14 	ARTICLE 8
153.15 	MISCELLANEOUS TAXES

153.16 	Section 1. [136A.129] GREATER MINNESOTA INTERNSHIP PROGRAM.
153.17 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in 
153.18 	this subdivision have the meanings given them.
153.19 	(b) "Eligible employer" means a taxpayer under section 290.01 with employees 
153.20 	located in greater Minnesota.
153.21 	(c) "Eligible institution" means a Minnesota public postsecondary institution, or a 
153.22 	Minnesota private, nonprofit, baccalaureate degree granting college or university.
153.23 	(d) "Eligible student" means a student enrolled in an eligible institution who is a 
153.24 	junior or senior in a degree program or has completed one-half of the credits necessary for 
153.25 	an associate degree or certification.
153.26 	(e) "Greater Minnesota" means the area located outside of the metropolitan area, as 
153.27 	defined in section 473.121, subdivision 2.
153.28 	(f) "Office" means the Office of Higher Education.
153.29 		Subd. 2.Program established. The office, in cooperation with the Department of 
153.30 	Employment and Economic Development, shall administer a greater Minnesota internship 
153.31 	grant program for eligible employers who hire interns in greater Minnesota through 
154.1 	eligible institutions that provide academic credit. The purpose of the program is to 
154.2 	encourage Minnesota businesses to:
154.3 	(1) employ and provide valuable experience to Minnesota students; and
154.4 	(2) foster long-term relationships between the students and greater Minnesota 
154.5 	employers.
154.6 		Subd. 3.Program components. (a) An intern must be an eligible student who 
154.7 	has been admitted to a major program that is closely related to the intern experience 
154.8 	as determined by the eligible institution.
154.9 	(b) To participate in the program, an eligible institution must:
154.10 	(1) enter into written agreements with eligible employers to provide paid internships 
154.11 	that are at least 12 weeks long and located in greater Minnesota;
154.12 	(2) determine that the work experience of the internship is closely related to the 
154.13 	eligible student's course of study; and
154.14 	(3) provide academic credit for the successful completion of the internship or 
154.15 	ensure that it fulfills requirements necessary to complete a vocational technical education 
154.16 	program.
154.17 	(c) To participate in the program, an eligible employer must enter into a written 
154.18 	agreement with an eligible institution specifying that the intern:
154.19 	(1) would not have been hired without the grant described in subdivision 4;
154.20 	(2) did not work for the employer prior to entering the agreement;
154.21 	(3) does not replace an existing employee;
154.22 	(4) has not previously participated in the program;
154.23 	(5) will be employed at a location in greater Minnesota;
154.24 	(6) will be paid at least minimum wage for a minimum of 16 hours per week for at 
154.25 	least a 12-week period; and
154.26 	(7) will be supervised and evaluated by the employer.
154.27 	(d) Participating eligible institutions and eligible employers must report annually to 
154.28 	the office. The report must include at least the following:
154.29 	(1) the number of interns hired;
154.30 	(2) the number of hours and weeks worked by interns; and
154.31 	(3) the compensation paid to interns.
154.32 	(e) An internship with clinical experience currently required for completion of 
154.33 	an academic program does not qualify for the greater Minnesota internship program 
154.34 	under this section.
154.35 		Subd. 4.Employer grants for internships; maximum limits. (a) A grant for an 
154.36 	eligible employer equals 40 percent of the compensation paid to each qualifying intern, 
155.1 	not to exceed $1,250. An employer may receive a grant for a maximum of five interns 
155.2 	in any fiscal year.
155.3 	(b) The total amount of grants authorized under this section is limited to $1,250,000 
155.4 	per fiscal year less administrative expense as provided in law. The office shall allocate 
155.5 	grants to eligible institutions for participating employers and certify to the Department of 
155.6 	Employment and Economic Development the amount of the grant.
155.7 		Subd. 5.Allocations to institutions. The office shall allocate employer grants 
155.8 	authorized in subdivision 4 to eligible institutions. The office shall determine relevant 
155.9 	criteria to allocate the grants, including the geographic distribution of grants to work 
155.10 	locations outside the metropolitan area. Any grant amount allocated to an institution but 
155.11 	not used may be reallocated to other eligible institutions. The office shall allocate a portion 
155.12 	of any administrative fee to participating eligible institutions for their administrative costs.
155.13 		Subd. 6.Reports to the legislature. (a) By February 1, 2013, the office and the 
155.14 	Department of Employment and Economic Development shall report to the legislature on 
155.15 	the greater Minnesota internship program. The report must include at least the following:
155.16 	(1) the number and dollar amount of grants allocated to employers;
155.17 	(2) the number of interns employed under the program; and
155.18 	(3) the cost of administering the program.
155.19 	(b) By February 1, 2014, the office and the Department of Employment and 
155.20 	Economic Development shall report to the legislature with an analysis of the effectiveness 
155.21 	of the program in stimulating businesses to hire interns and in assisting participating 
155.22 	interns in finding permanent career positions. The report must include the number of 
155.23 	students who participated in the program who were subsequently employed full-time by 
155.24 	the employer.

155.25 	EFFECTIVE DATE. This section is effective July 1, 2012.

155.26 	Sec. 2. Minnesota Statutes 2010, section 297A.8155, is amended to read:
155.27 	297A.8155 LIQUOR REPORTING REQUIREMENTS; PENALTY.
155.28 	A person who sells liquor, as defined in section 295.75, subdivision 1, in Minnesota 
155.29 	to a retailer that sells liquor, shall file with the commissioner an annual informational 
155.30 	report, in the form and manner prescribed by the commissioner, indicating the name, 
155.31 	address, and Minnesota business identification number of each retailer, and the total 
155.32 	dollar amount of liquor sold to each retailer in the previous calendar year. The report 
155.33 	must be filed on or before March 31 following the close of the calendar year. A person 
155.34 	failing to file this report is subject to the penalty imposed under section 289A.60. A 
156.1 	person required to file a report under this section is not required to provide a copy of an 
156.2 	exemption certificate, as defined in section 297A.72, provided to the person by a retailer, 
156.3 	along with the annual informational report.

156.4 	EFFECTIVE DATE. This section is effective for reports required to be filed 
156.5 	beginning in calendar year 2012 and thereafter.

156.6 	Sec. 3. Minnesota Statutes 2010, section 297G.04, subdivision 2, is amended to read:
156.7 		Subd. 2.Tax credit. A qualified brewer producing fermented malt beverages 
156.8 	is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year 
156.9 	beginning July 1, regardless of the alcohol content of the product. Qualified brewers may 
156.10 	take the credit on the 18th day of each month, but the total credit allowed may not exceed 
156.11 	in any fiscal year the lesser of:
156.12 	(1) the liability for tax; or
156.13 	(2) $115,000.
156.14 	For purposes of this subdivision, a "qualified brewer" means a brewer, whether or 
156.15 	not located in this state, manufacturing less than 100,000 250,000 barrels of fermented 
156.16 	malt beverages in the calendar year immediately preceding the calendar year for which 
156.17 	the credit under this subdivision is claimed. In determining the number of barrels, all 
156.18 	brands or labels of a brewer must be combined. All facilities for the manufacture of 
156.19 	fermented malt beverages owned or controlled by the same person, corporation, or other 
156.20 	entity must be treated as a single brewer.

156.21 	EFFECTIVE DATE. This section is effective for determinations based on calendar 
156.22 	year 2011 production and thereafter.

156.23 	Sec. 4. Minnesota Statutes 2010, section 298.75, is amended by adding a subdivision 
156.24 	to read:
156.25 		Subd. 12.Tax may be imposed; Otter Tail County. (a) If Otter Tail County 
156.26 	does not impose a tax under this section and approves imposition of the tax under this 
156.27 	subdivision, the city of Vergas in Otter Tail County may impose the aggregate materials 
156.28 	tax under this section.
156.29 	(b) For purposes of exercising the powers contained in this section, the "city" is 
156.30 	deemed to be the "county."
156.31 	(c) All provisions in this section apply to the city of Vergas, except that in lieu of the 
156.32 	tax proceeds under subdivision 7, all proceeds of the tax must be retained by the city.
157.1 	(d) If Otter Tail County imposes an aggregate materials tax under this section, the 
157.2 	tax imposed by the city of Vergas under this subdivision is repealed on the effective 
157.3 	date of the Otter Tail County tax.

157.4 	EFFECTIVE DATE. This section is effective the day after the governing body of 
157.5 	the city of Vergas and its chief clerical officer comply with Minnesota Statutes, section 
157.6 	645.021, subdivisions 2 and 3.

157.7 	Sec. 5. Minnesota Statutes 2010, section 469.169, is amended by adding a subdivision 
157.8 	to read:
157.9 		Subd. 19.Additional border city allocation; 2012. (a) In addition to tax 
157.10 	reductions authorized in subdivisions 7 to 18, the commissioner shall allocate $125,000 
157.11 	for tax reductions to border city enterprise zones in cities located on the western border 
157.12 	of the state. The commissioner shall make allocations to zones in cities on the western 
157.13 	border on a per capita basis. Allocations made under this subdivision may be used for 
157.14 	tax reductions as provided in section 469.171, or for other offsets of taxes imposed on 
157.15 	or remitted by businesses located in the enterprise zone, but only if the municipality 
157.16 	determines that the granting of the tax reduction or offset is necessary in order to retain a 
157.17 	business within or attract a business to the zone. The city alternatively may elect to use 
157.18 	any portion of the allocation provided in this paragraph for tax reductions under section 
157.19 	469.1732 or 469.1734.
157.20 	(b) The commissioner shall allocate $125,000 for tax reductions under section 
157.21 	469.1732 or 469.1734 to cities with border city enterprise zones located on the western 
157.22 	border of the state. The commissioner shall allocate this amount among the cities on a per 
157.23 	capita basis. The city alternatively may elect to use any portion of the allocation provided 
157.24 	in this paragraph for tax reductions as provided in section 469.171.

157.25 	Sec. 6. LIQUOR REPORTING REQUIREMENTS.
 157.26 	A person who was required to submit an annual informational report under 
157.27 	Minnesota Statutes, section 297A.8155, to the commissioner of revenue during calendar 
157.28 	year 2010 or 2011 is not required to provide a copy of an exemption certificate or a 
157.29 	retailer's tax identification number along with the informational report.

157.30 	EFFECTIVE DATE. This section is effective the day following final enactment 
157.31 	and applies to reports required to be filed in calendar year 2010 or 2011.

157.32 	Sec. 7. PURPOSE STATEMENTS; TAX EXPENDITURES.
 158.1 		Subdivision 1.Authority. This section is intended to fulfill the requirement under 
158.2 	Minnesota Statutes, section 3.192, that a bill creating, renewing, or continuing a tax 
158.3 	expenditure provide a purpose for the tax expenditure and a standard or goal against 
158.4 	which its effectiveness may be measured.
158.5 		Subd. 2.Federal conformity. The provisions of article 2 conforming Minnesota 
158.6 	individual income tax to changes in federal law are intended to simplify compliance with 
158.7 	and administration of the individual income tax.
158.8 		Subd. 3.Employment of qualified veterans tax credit. The provisions of article 2, 
158.9 	section 16, providing a tax credit for the employment of qualified veterans, are intended 
158.10 	to give an incentive to employers to hire returning veterans who would otherwise be 
158.11 	unemployed and to encourage their reintegration into the community. The standard against 
158.12 	which the effectiveness of the credit is to be measured is the additional number of veterans 
158.13 	who are hired as a result of the tax credit.
158.14 		Subd. 4.Extension of historic structure rehabilitation credit. The provisions 
158.15 	of article 2, section 15, extending the sunset of the historic structure rehabilitation credit 
158.16 	are intended to create and retain jobs related to rehabilitation of historic structures in 
158.17 	Minnesota. The standard against which the effectiveness of the extension of the credit is to 
158.18 	be measured is the number of jobs created through the rehabilitation of historic structures 
158.19 	and the number of historic structures rehabilitated and placed in service.
158.20 		Subd. 5.Exemption of certain laboratory services from the health care provider 
158.21 	tax. The provisions of article 3, section 2, exempting laboratory services on specimens 
158.22 	collected outside the state from the health care provider tax is intended to eliminate 
158.23 	a competitive disadvantage for laboratories located in Minnesota when competing to 
158.24 	provide services with laboratories located outside of the state.
158.25 		Subd. 6.Sales tax exemption for established religious orders. The provisions 
158.26 	of article 3, section 7, exempting certain sales between a religious order and an affiliated 
158.27 	institute of higher education is intended to retain an existing sales tax exemption that 
158.28 	exists between St. John's Abbey and St. John's University after a governing restructure 
158.29 	between the two entities.
158.30 		Subd. 7.Sales tax exemption for nursing homes and boarding care homes.
 158.31 	The provisions of article 3, section 8, exempting certain nursing homes and boarding 
158.32 	care homes is intended to clarify that an existing exemption for these facilities is not 
158.33 	affected by a recent property tax case related to defining nonprofit organizations engaged 
158.34 	in charitable activities.

158.35 	EFFECTIVE DATE. This section is effective the day following final enactment.

159.1 	Sec. 8. APPROPRIATION; GREATER MINNESOTA INTERNSHIP 
159.2 	PROGRAM.
 159.3 	$1,000,000 for fiscal year 2013 is appropriated from the general fund to the 
159.4 	commissioner of employment and economic development for grants under Minnesota 
159.5 	Statutes, section 136A.129, for employers who hire interns. Up to five percent of 
159.6 	the appropriation is for an administrative fee for the Office of Higher Education and 
159.7 	participating eligible institutions. The base for the Department of Employment and 
159.8 	Economic Development for the greater Minnesota internship program beginning in fiscal 
159.9 	year 2014 is $1,250,000.

159.10 	EFFECTIVE DATE. This section is effective July 1, 2012.

159.11 	Sec. 9. APPROPRIATION; MINNESOTA INVESTMENT FUND.
 159.12 	$2,000,000 for fiscal year 2013 is appropriated from the general fund to the 
159.13 	commissioner of employment and economic development for the Minnesota investment 
159.14 	fund under Minnesota Statutes, section 116J.8731. This is a onetime appropriation and 
159.15 	is available until spent.

159.16 	Sec. 10. SPECIAL RECOVERY FUND; CANCELLATION.
 159.17 	$4,000,000 of the balance in the Revenue Department service and recovery special 
159.18 	revenue fund under Minnesota Statutes, section 270C.15, is transferred in fiscal year 
159.19 	2012 to the general fund.

159.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

159.21 	Sec. 11. BUDGET RESERVE.
 159.22 	To offset the payment to the centers for Medicaid and Medicare services for the 
159.23 	federal share of the UCare donation and the net budget effect on the general fund of this act 
159.24 	and other acts, the commissioner of management and budget shall cancel $43,500,000 to 
159.25 	the general fund from the budget reserve account in Minnesota Statutes, section 16A.152.

159.26 	EFFECTIVE DATE. This section is effective the day following final enactment.