<a id="pl.1.4"></a><var>1.4</var>income, corporate franchise, property, sales and use, mineral, liquor, aggregate <br/>
<a id="pl.1.5"></a><var>1.5</var>materials, local, and other taxes and tax-related provisions; changing and <br/>
<a id="pl.1.6"></a><var>1.6</var>providing income and franchise tax credits, exemptions, and deductions; <br/>
<a id="pl.1.7"></a><var>1.7</var>providing for taxation of foreign operating companies; providing a corporate tax <br/>
<a id="pl.1.8"></a><var>1.8</var>benefit transfer program; changing certain mining tax rates and allocation of tax <br/>
<a id="pl.1.9"></a><var>1.9</var>proceeds; changing property tax interest, credits, and exemptions, and providing <br/>
<a id="pl.1.10"></a><var>1.10</var>for use of a local levy; phasing out the state general levy; modifying the renter <br/>
<a id="pl.1.11"></a><var>1.11</var>property tax refund and providing a supplemental targeting refund; modifying <br/>
<a id="pl.1.12"></a><var>1.12</var>city aid payments; modifying tax increment financing district requirements; <br/>
<a id="pl.1.13"></a><var>1.13</var>authorizing, changing, and extending tax increment financing districts in certain <br/>
<a id="pl.1.14"></a><var>1.14</var>local governments; changing sales and use tax payment requirements and <br/>
<a id="pl.1.15"></a><var>1.15</var>changing and providing exemptions; modifying use of revenues and authorizing <br/>
<a id="pl.1.16"></a><var>1.16</var>extension of certain sales and lodging taxes for certain cities; changing liquor tax <br/>
<a id="pl.1.17"></a><var>1.17</var>reporting and credits; allocating funds to border city enterprise zones; authorizing <br/>
<a id="pl.1.18"></a><var>1.18</var>certain local governments to issue public debt; establishing a truth in taxation <br/>
<a id="pl.1.19"></a><var>1.19</var>task force; establishing a tax reform action committee; establishing a greater <br/>
<a id="pl.1.20"></a><var>1.20</var>Minnesota internship program; requiring reports; requiring a funds transfer <br/>
<a id="pl.1.21"></a><var>1.21</var>appropriating money;amending Minnesota Statutes 2010, sections 116J.8737, <br/>
<a id="pl.1.22"></a><var>1.22</var>subdivisions 5, 8, by adding a subdivision; 273.113; 275.025, subdivisions 1, <br/>
<a id="pl.1.23"></a><var>1.23</var>2, 4; 279.03, subdivisions 1a, 2; 289A.08, subdivision 3; 289A.20, subdivision <br/>
<a id="pl.1.24"></a><var>1.24</var>4; 290.01, subdivisions 19d, 29; 290.06, by adding subdivisions; 290.068, <br/>
<a id="pl.1.25"></a><var>1.25</var>subdivision 1; 290.17, subdivision 4; 290.21, subdivision 4; 290A.04, <br/>
<a id="pl.1.26"></a><var>1.26</var>subdivision 2a, by adding a subdivision; 290A.23, subdivision 1; 290B.07; <br/>
<a id="pl.1.27"></a><var>1.27</var>290B.08, subdivision 2; 297A.68, subdivision 5; 297A.70, subdivision 4, by <br/>
<a id="pl.1.28"></a><var>1.28</var>adding a subdivision; 297A.8155; 297G.04, subdivision 2; 298.018, subdivision <br/>
<a id="pl.1.29"></a><var>1.29</var>1; 298.28, subdivision 4; 298.75, by adding a subdivision; 469.169, by adding <br/>
<a id="pl.1.30"></a><var>1.30</var>a subdivision; 477A.011, subdivision 36; 477A.013, by adding a subdivision; <br/>
<a id="pl.1.31"></a><var>1.31</var>Minnesota Statutes 2011 Supplement, sections 116J.8737, subdivisions 1, 2; <br/>
<a id="pl.1.32"></a><var>1.32</var>290.01, subdivision 19c; 290A.03, subdivisions 11, 13; 290A.04, subdivision <br/>
<a id="pl.1.33"></a><var>1.33</var>4; 298.01, subdivision 3; 298.015, subdivision 1; 298.28, subdivision 2; <br/>
<a id="pl.1.34"></a><var>1.34</var>469.176, subdivisions 4c, 4m; 469.1763, subdivision 2; 477A.013, subdivision <br/>
<a id="pl.1.35"></a><var>1.35</var>9; Laws 1971, chapter 773, section 1, subdivision 2, as amended; Laws 1988, <br/>
<a id="pl.1.36"></a><var>1.36</var>chapter 645, section 3, as amended; Laws 1998, chapter 389, article 8, section <br/>
<a id="pl.1.37"></a><var>1.37</var>43, subdivision 3, as amended; Laws 2002, chapter 377, article 3, section 25, <br/>
<a id="pl.1.38"></a><var>1.38</var>as amended; Laws 2003, chapter 127, article 12, section 28; Laws 2005, First <br/>
<a id="pl.1.39"></a><var>1.39</var>Special Session chapter 3, article 5, section 37, subdivisions 2, 4; Laws 2008, <br/>
<a id="pl.1.40"></a><var>1.40</var>chapter 366, article 5, section 34, as amended; article 7, section 19, subdivision <br/>
<a id="pl.1.41"></a><var>1.41</var>3, as amended; Laws 2010, chapter 389, article 1, section 12; proposing coding <br/>
<a id="pl.1.42"></a><var>1.42</var>for new law in Minnesota Statutes, chapters 116J; 136A; repealing Minnesota <br/>
<a id="pl.1.43"></a><var>1.43</var>Statutes 2010, section 290.0921, subdivision 7; Minnesota Statutes 2011 <br/>
<a id="pl.2.1"></a><var>2.1</var>Supplement, section 289A.60, subdivision 31; Laws 2009, chapter 88, article 4, <br/>
<a id="pl.2.2"></a><var>2.2</var>section 23, as amended.<br/>
<a id="pl.2.3"></a><var>2.3</var>April 30, 2012<br/>
<a id="pl.2.4"></a><var>2.4</var>The Honorable Kurt Zellers<br/>
<a id="pl.2.5"></a><var>2.5</var>Speaker of the House of Representatives<br/>
<a id="pl.2.6"></a><var>2.6</var>The Honorable Michelle L. Fischbach<br/>
<a id="pl.2.7"></a><var>2.7</var>President of the Senate<br/>
<a id="pl.2.8"></a><var>2.8</var>We, the undersigned conferees for H. F. No. 2337 report that we have agreed upon <br/>
<a id="pl.2.9"></a><var>2.9</var>the items in dispute and recommend as follows:<br/>
<a id="pl.2.10"></a><var>2.10</var>That the Senate recede from its amendments and that H. F. No. 2337 be further <br/>
<a id="pl.2.11"></a><var>2.11</var>amended as follows:<br/>
<a id="pl.2.12"></a><var>2.12</var>Delete everything after the enacting clause and insert:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.2.15"></a><var>2.15</var>    Section 1. Minnesota Statutes 2010, section 6.91, subdivision 2, is amended to read:<br/>
<a id="pl.2.16"></a><var>2.16</var>    Subd. 2. <b>Benefits of participation.</b> (a) A county or city that elects to participate in <br/>
<a id="pl.2.17"></a><var>2.17</var>the standard measures program for 2011 is: (1) eligible for per capita reimbursement of <br/>
<a id="pl.2.18"></a><var>2.18</var>$0.14 per capita, but not to exceed $25,000 for any government entity; and (2) exempt <br/>
<a id="pl.2.19"></a><var>2.19</var>from levy limits under sections 
         <statute_ref>275.70</statute_ref> to 
         <statute_ref>275.74</statute_ref> for taxes payable in 2012, if levy limits <br/>
<a id="pl.2.20"></a><var>2.20</var>are in effect.<br/>
<a id="pl.2.21"></a><var>2.21</var>(b) Any county or city that elects to participate in the standard measures program <br/>
<a id="pl.2.22"></a><var>2.22</var>for 2012 is eligible for per capita reimbursement of $0.14 per capita, but not to exceed <br/>
<a id="pl.2.23"></a><var>2.23</var>$25,000 for any government entity, provided that for 2012, a county or city with a <br/>
<a id="pl.2.24"></a><var>2.24</var>population over 5,000 must also participate in the expenditure-type reporting under section <br/>
<a id="pl.2.25"></a><var>2.25</var>471.703 in order to be eligible. Any jurisdiction participating in the comprehensive <br/>
<a id="pl.2.26"></a><var>2.26</var>performance measurement program is exempt from levy limits under sections 
         <statute_ref>275.70</statute_ref> to <br/>
<statute_ref><a id="pl.2.27"></a><var>2.27</var>275.74
         </statute_ref> for taxes payable in 2013 if levy limits are in effect.<br/>
<a id="pl.2.28"></a><var>2.28</var>(c) Any county or city that elects to participate in the standard measures program for <br/>
<a id="pl.2.29"></a><var>2.29</var>2013 or any year thereafter is eligible for per capita reimbursement of $0.14 per capita, <br/>
<a id="pl.2.30"></a><var>2.30</var>but not to exceed $25,000 for any government entity. Any jurisdiction participating in <br/>
<a id="pl.2.31"></a><var>2.31</var>the comprehensive performance measurement program for 2013 or any year thereafter is <br/>
<a id="pl.2.32"></a><var>2.32</var>exempt from levy limits under sections 
         <statute_ref>275.70</statute_ref> to 
         <statute_ref>275.74</statute_ref> for taxes payable in the following <br/>
<a id="pl.2.33"></a><var>2.33</var>year, if levy limits are in effect.<br/>
<a id="pl.2.34"></a><var>2.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.2.35"></a><var>2.35</var>    Sec. 2. Minnesota Statutes 2010, section 273.113, is amended to read:<br/>
<a id="pl.3.1"></a><var>3.1</var><b>273.113 TAX CREDIT FOR PROPERTY IN </b><b>PROPOSED</b><b> BOVINE </b><br/>
<a id="pl.3.2"></a><var>3.2</var><b>TUBERCULOSIS </b><b>MODIFIED ACCREDITED</b><b> MANAGEMENT</b><b> ZONE.</b><br/>
<a id="pl.3.3"></a><var>3.3</var>    Subdivision 1. <b>Definitions.</b> For the purposes of this section, the following terms <br/>
<a id="pl.3.4"></a><var>3.4</var>have the meanings given to them:<br/>
<a id="pl.3.5"></a><var>3.5</var>    (1) "bovine tuberculosis modified accredited management zone" means the modified <br/>
<a id="pl.3.6"></a><var>3.6</var>accredited management zone designated by the Board of Animal Health under section <br/>
<statute_ref><a id="pl.3.7"></a><var>3.7</var>35.244
         </statute_ref>;<br/>
<a id="pl.3.8"></a><var>3.8</var>    (2) "located within" means that the herd is kept in the area for at least a part of <br/>
<a id="pl.3.9"></a><var>3.9</var>calendar year 2006, 2007, or 2008; and<br/>
<a id="pl.3.10"></a><var>3.10</var>    (3) "animal" means cattle, bison, goats, and farmed cervidae.<br/>
<a id="pl.3.11"></a><var>3.11</var>    Subd. 2. <b>Eligibility; amount of credit.</b> Agricultural and rural vacant land classified <br/>
<a id="pl.3.12"></a><var>3.12</var>under section 
         <statute_ref>273.13, subdivision 23</statute_ref>, located within a bovine tuberculosis modified <br/>
<a id="pl.3.13"></a><var>3.13</var>accredited management zone is eligible for a property tax credit equal to the greater of: (1) <br/>
<a id="pl.3.14"></a><var>3.14</var>$5 per acre on the first 160 acres of the property where the herd had been located; or (2) an <br/>
<a id="pl.3.15"></a><var>3.15</var>amount equal to $5 per acre times five acres times the highest number of animals tested <br/>
<a id="pl.3.16"></a><var>3.16</var>on the property for bovine tuberculosis in a whole-herd test as reported by the Board of <br/>
<a id="pl.3.17"></a><var>3.17</var>Animal Health in 2006, 2007, or 2008 the amount of credit received under this section for <br/>
<a id="pl.3.18"></a><var>3.18</var>taxes payable in 2011. The amount of the credit cannot exceed the property tax payable on <br/>
<a id="pl.3.19"></a><var>3.19</var>the property where the herd had been located, excluding any tax attributable to residential <br/>
<a id="pl.3.20"></a><var>3.20</var>structures. To begin to qualify for the tax credit for taxes payable in 2012, the owner shall <br/>
<a id="pl.3.21"></a><var>3.21</var>file an application with the county by December 1 of the levy year July 1, 2012. For <br/>
<a id="pl.3.22"></a><var>3.22</var>taxes payable in 2012, the credit shall be paid as a direct payment to the property owner, <br/>
<a id="pl.3.23"></a><var>3.23</var>issued by the county within 30 days of receipt of the application, provided that there are <br/>
<a id="pl.3.24"></a><var>3.24</var>no delinquent taxes on the property. The credit must be given for each subsequent taxes <br/>
<a id="pl.3.25"></a><var>3.25</var>payable year until the credit terminates under subdivision 4. For taxes payable in 2013 <br/>
<a id="pl.3.26"></a><var>3.26</var>and thereafter, the assessor shall indicate the amount of the property tax reduction on the <br/>
<a id="pl.3.27"></a><var>3.27</var>property tax statement of each taxpayer receiving a credit under this section. For taxes <br/>
<a id="pl.3.28"></a><var>3.28</var>payable in 2013 and thereafter, the credit paid pursuant to this section shall be deducted <br/>
<a id="pl.3.29"></a><var>3.29</var>from the tax due on the property as provided in section 
         <statute_ref>273.1393</statute_ref>.<br/>
<a id="pl.3.30"></a><var>3.30</var>    Subd. 3. <b>Reimbursement for lost revenue.</b> The county auditor shall certify to the <br/>
<a id="pl.3.31"></a><var>3.31</var>commissioner of revenue, as part of the abstracts of tax lists required to be filed with the <br/>
<a id="pl.3.32"></a><var>3.32</var>commissioner under section 
         <statute_ref>275.29</statute_ref>, the amount of tax lost to the county from the property <br/>
<a id="pl.3.33"></a><var>3.33</var>tax credit under subdivision 2, except that for taxes payable in 2012 only, the county shall <br/>
<a id="pl.3.34"></a><var>3.34</var>submit the credit amounts to the commissioner of revenue in a separate report, in a form <br/>
<a id="pl.3.35"></a><var>3.35</var>prescribed by the commissioner, prior to August 15, 2012. Any prior year adjustments <br/>
<a id="pl.3.36"></a><var>3.36</var>must also be certified in the abstracts of tax lists. The commissioner of revenue shall <br/>
<a id="pl.4.1"></a><var>4.1</var>review the certifications to determine their accuracy. The commissioner may make the <br/>
<a id="pl.4.2"></a><var>4.2</var>changes in the certification that are considered necessary or return a certification to the <br/>
<a id="pl.4.3"></a><var>4.3</var>county auditor for corrections. The commissioner shall reimburse each taxing district, <br/>
<a id="pl.4.4"></a><var>4.4</var>other than school districts, for the taxes lost. The payments must be made at the time <br/>
<a id="pl.4.5"></a><var>4.5</var>provided in section 
         <statute_ref>473H.10</statute_ref> for payment to taxing jurisdictions in the same proportion <br/>
<a id="pl.4.6"></a><var>4.6</var>that the ad valorem tax is distributed, except that for taxes payable in 2012 the entire <br/>
<a id="pl.4.7"></a><var>4.7</var>reimbursement must be made to the county. Reimbursements to school districts must be <br/>
<a id="pl.4.8"></a><var>4.8</var>made as provided in section 
         <statute_ref>273.1392</statute_ref>. The amount necessary to make the reimbursements <br/>
<a id="pl.4.9"></a><var>4.9</var>under this section is annually appropriated from the general fund to the commissioner of <br/>
<a id="pl.4.10"></a><var>4.10</var>revenue.<br/>
<a id="pl.4.11"></a><var>4.11</var>    Subd. 4. <b>Termination of credit.</b> The credits provided under this section cease to <br/>
<a id="pl.4.12"></a><var>4.12</var>be available beginning with taxes payable in the year following the date when the Board <br/>
<a id="pl.4.13"></a><var>4.13</var>of Animal Health notifies the commissioner of revenue in writing that the board has <br/>
<a id="pl.4.14"></a><var>4.14</var>certified that the state is free of discontinued all required bovine tuberculosis related <br/>
<a id="pl.4.15"></a><var>4.15</var>activities within the bovine tuberculosis management zone.<br/>
<a id="pl.4.16"></a><var>4.16</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.4.17"></a><var>4.17</var>thereafter.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.4.18"></a><var>4.18</var>    Sec. 3. Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read:<br/>
<a id="pl.4.19"></a><var>4.19</var>    Subdivision 1. <b>Levy amount.</b> The state general levy is levied against <br/>
<a id="pl.4.20"></a><var>4.20</var>commercial-industrial property and seasonal residential recreational property, as defined in <br/>
<a id="pl.4.21"></a><var>4.21</var>this section. The state general levy base amount is $592,000,000 $817,423,000 for taxes <br/>
<a id="pl.4.22"></a><var>4.22</var>payable in 2002 2013 and thereafter. For taxes payable in subsequent years, the levy base <br/>
<a id="pl.4.23"></a><var>4.23</var>amount is increased each year by multiplying the levy base amount for the prior year by <br/>
<a id="pl.4.24"></a><var>4.24</var>the sum of one plus the rate of increase, if any, in the implicit price deflator for government <br/>
<a id="pl.4.25"></a><var>4.25</var>consumption expenditures and gross investment for state and local governments prepared <br/>
<a id="pl.4.26"></a><var>4.26</var>by the Bureau of Economic Analysts of the United States Department of Commerce for <br/>
<a id="pl.4.27"></a><var>4.27</var>the 12-month period ending March 31 of the year prior to the year the taxes are payable. <br/>
<a id="pl.4.28"></a><var>4.28</var>The tax under this section is not treated as a local tax rate under section 
         <statute_ref>469.177</statute_ref> and is not <br/>
<a id="pl.4.29"></a><var>4.29</var>the levy of a governmental unit under chapters 276A and 473F.<br/>
<a id="pl.4.30"></a><var>4.30</var>The commissioner shall increase or decrease the preliminary or final rate rates for a <br/>
<a id="pl.4.31"></a><var>4.31</var>year as necessary to account for errors and tax base changes that affected a preliminary or <br/>
<a id="pl.4.32"></a><var>4.32</var>final rate for either of the two preceding years. Adjustments are allowed to the extent that <br/>
<a id="pl.4.33"></a><var>4.33</var>the necessary information is available to the commissioner at the time the rates for a year <br/>
<a id="pl.4.34"></a><var>4.34</var>must be certified, and for the following reasons:<br/>
<a id="pl.4.35"></a><var>4.35</var>(1) an erroneous report of taxable value by a local official;<br/>
<a id="pl.5.1"></a><var>5.1</var>(2) an erroneous calculation by the commissioner; and<br/>
<a id="pl.5.2"></a><var>5.2</var>(3) an increase or decrease in taxable value for commercial-industrial or seasonal <br/>
<a id="pl.5.3"></a><var>5.3</var>residential recreational property reported on the abstracts of tax lists submitted under <br/>
<a id="pl.5.4"></a><var>5.4</var>section 
         <statute_ref>275.29</statute_ref> that was not reported on the abstracts of assessment submitted under <br/>
<a id="pl.5.5"></a><var>5.5</var>section 
         <statute_ref>270C.89</statute_ref> for the same year.<br/>
<a id="pl.5.6"></a><var>5.6</var>The commissioner may, but need not, make adjustments if the total difference in the tax <br/>
<a id="pl.5.7"></a><var>5.7</var>levied for the year would be less than $100,000.<br/>
<a id="pl.5.8"></a><var>5.8</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2013 and <br/>
<a id="pl.5.9"></a><var>5.9</var>thereafter.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.5.10"></a><var>5.10</var>    Sec. 4. Minnesota Statutes 2010, section 275.065, subdivision 1, is amended to read:<br/>
<a id="pl.5.11"></a><var>5.11</var>    Subdivision 1. <b>Proposed levy.</b> (a) Notwithstanding any law or charter to the <br/>
<a id="pl.5.12"></a><var>5.12</var>contrary, on or before September 15, each taxing authority, other than a school district, <br/>
<a id="pl.5.13"></a><var>5.13</var>shall adopt a proposed budget and shall certify to the county auditor the proposed or, in <br/>
<a id="pl.5.14"></a><var>5.14</var>the case of a town, the final property tax levy for taxes payable in the following year. All <br/>
<a id="pl.5.15"></a><var>5.15</var>counties with a population of more than 5,000 and home rule charter or statutory cities <br/>
<a id="pl.5.16"></a><var>5.16</var>with a population of more than 5,000, shall also provide to the county auditor the county <br/>
<a id="pl.5.17"></a><var>5.17</var>or city Web site, if there is one, where the public is able to access the budget information <br/>
<a id="pl.5.18"></a><var>5.18</var>required to be reported under section 471.703.<br/>
<a id="pl.5.19"></a><var>5.19</var>    (b) On or before September 30, each school district that has not mutually agreed <br/>
<a id="pl.5.20"></a><var>5.20</var>with its home county to extend this date shall certify to the county auditor the proposed <br/>
<a id="pl.5.21"></a><var>5.21</var>property tax levy for taxes payable in the following year. Each school district that has <br/>
<a id="pl.5.22"></a><var>5.22</var>agreed with its home county to delay the certification of its proposed property tax levy <br/>
<a id="pl.5.23"></a><var>5.23</var>must certify its proposed property tax levy for the following year no later than October <br/>
<a id="pl.5.24"></a><var>5.24</var>7. The school district shall certify the proposed levy as:<br/>
<a id="pl.5.25"></a><var>5.25</var>    (1) a specific dollar amount by school district fund, broken down between <br/>
<a id="pl.5.26"></a><var>5.26</var>voter-approved and non-voter-approved levies and between referendum market value <br/>
<a id="pl.5.27"></a><var>5.27</var>and tax capacity levies; or<br/>
<a id="pl.5.28"></a><var>5.28</var>    (2) the maximum levy limitation certified by the commissioner of education <br/>
<a id="pl.5.29"></a><var>5.29</var>according to section 
         <statute_ref>126C.48, subdivision 1</statute_ref>.<br/>
<a id="pl.5.30"></a><var>5.30</var>    (c) If the board of estimate and taxation or any similar board that establishes <br/>
<a id="pl.5.31"></a><var>5.31</var>maximum tax levies for taxing jurisdictions within a first class city certifies the maximum <br/>
<a id="pl.5.32"></a><var>5.32</var>property tax levies for funds under its jurisdiction by charter to the county auditor by <br/>
<a id="pl.5.33"></a><var>5.33</var>September 15, the city shall be deemed to have certified its levies for those taxing <br/>
<a id="pl.5.34"></a><var>5.34</var>jurisdictions.<br/>
<a id="pl.6.1"></a><var>6.1</var>    (d) For purposes of this section, "taxing authority" includes all home rule and <br/>
<a id="pl.6.2"></a><var>6.2</var>statutory cities, towns, counties, school districts, and special taxing districts as defined <br/>
<a id="pl.6.3"></a><var>6.3</var>in section 
         <statute_ref>275.066</statute_ref>. Intermediate school districts that levy a tax under chapter 124 or <br/>
<a id="pl.6.4"></a><var>6.4</var>136D, joint powers boards established under sections 
         <statute_ref>123A.44</statute_ref> to 
         <statute_ref>123A.446</statute_ref>, and Common <br/>
<a id="pl.6.5"></a><var>6.5</var>School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing <br/>
<a id="pl.6.6"></a><var>6.6</var>districts for purposes of this section.<br/>
<a id="pl.6.7"></a><var>6.7</var>(e) At the meeting at which the taxing authority, other than a town, adopts its <br/>
<a id="pl.6.8"></a><var>6.8</var>proposed tax levy under paragraph (a) or (b), the taxing authority shall announce the <br/>
<a id="pl.6.9"></a><var>6.9</var>time and place of its subsequent regularly scheduled meetings at which the budget and <br/>
<a id="pl.6.10"></a><var>6.10</var>levy will be discussed and at which the public will be allowed to speak. The time and <br/>
<a id="pl.6.11"></a><var>6.11</var>place of those meetings The following information must be included in the proceedings <br/>
<a id="pl.6.12"></a><var>6.12</var>or summary of proceedings published in the official newspaper of the taxing authority <br/>
<a id="pl.6.13"></a><var>6.13</var>under section 
         <statute_ref>123B.09</statute_ref>, 
         <statute_ref>375.12</statute_ref>, or 
         <statute_ref>412.191</statute_ref>:<br/>
<a id="pl.6.14"></a><var>6.14</var>(1) the time and place of the meetings described in this paragraph; and<br/>
<a id="pl.6.15"></a><var>6.15</var>(2) a statement that the budget information required to be reported under section <br/>
<a id="pl.6.16"></a><var>6.16</var>471.703 is available on the county or city Web site, if there is one.<br/>
<a id="pl.6.17"></a><var>6.17</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.6.18"></a><var>6.18</var>    Sec. 5. Minnesota Statutes 2010, section 275.065, subdivision 3, is amended to read:<br/>
<a id="pl.6.19"></a><var>6.19</var>    Subd. 3. <b>Notice of proposed property taxes.</b> (a) The county auditor shall prepare <br/>
<a id="pl.6.20"></a><var>6.20</var>and the county treasurer shall deliver after November 10 and on or before November 24 <br/>
<a id="pl.6.21"></a><var>6.21</var>each year, by first class mail to each taxpayer at the address listed on the county's current <br/>
<a id="pl.6.22"></a><var>6.22</var>year's assessment roll, a notice of proposed property taxes. Upon written request by <br/>
<a id="pl.6.23"></a><var>6.23</var>the taxpayer, the treasurer may send the notice in electronic form or by electronic mail <br/>
<a id="pl.6.24"></a><var>6.24</var>instead of on paper or by ordinary mail.<br/>
<a id="pl.6.25"></a><var>6.25</var>    (b) The commissioner of revenue shall prescribe the form of the notice.<br/>
<a id="pl.6.26"></a><var>6.26</var>    (c) The notice must inform taxpayers that it contains the amount of property taxes <br/>
<a id="pl.6.27"></a><var>6.27</var>each taxing authority proposes to collect for taxes payable the following year. In the <br/>
<a id="pl.6.28"></a><var>6.28</var>case of a town, or in the case of the state general tax, the final tax amount will be its <br/>
<a id="pl.6.29"></a><var>6.29</var>proposed tax. The notice must clearly state for each city that has a population over 500, <br/>
<a id="pl.6.30"></a><var>6.30</var>county, school district, regional library authority established under section 
         <statute_ref>134.201</statute_ref>, and <br/>
<a id="pl.6.31"></a><var>6.31</var>metropolitan taxing districts as defined in paragraph (i), the time and place of a meeting <br/>
<a id="pl.6.32"></a><var>6.32</var>for each taxing authority in which the budget and levy will be discussed and public input <br/>
<a id="pl.6.33"></a><var>6.33</var>allowed, prior to the final budget and levy determination. The notice must clearly state <br/>
<a id="pl.6.34"></a><var>6.34</var>for each county with a population of more than 5,000 and for each city with a population <br/>
<a id="pl.6.35"></a><var>6.35</var>of more than 5,000 that the budget information required to be reported under section <br/>
<a id="pl.7.1"></a><var>7.1</var>471.703 is available on the county or city Web site, if there is one. The taxing authorities <br/>
<a id="pl.7.2"></a><var>7.2</var>must provide the county auditor with the information to be included in the notice on or <br/>
<a id="pl.7.3"></a><var>7.3</var>before the time it certifies its proposed levy under subdivision 1. The public must be <br/>
<a id="pl.7.4"></a><var>7.4</var>allowed to speak at that meeting, which must occur after November 24 and must not be <br/>
<a id="pl.7.5"></a><var>7.5</var>held before 6:00 p.m. It must provide a telephone number for the taxing authority that <br/>
<a id="pl.7.6"></a><var>7.6</var>taxpayers may call if they have questions related to the notice and an address where <br/>
<a id="pl.7.7"></a><var>7.7</var>comments will be received by mail, except that no notice required under this section <br/>
<a id="pl.7.8"></a><var>7.8</var>shall be interpreted as requiring the printing of a personal telephone number or address <br/>
<a id="pl.7.9"></a><var>7.9</var>as the contact information for a taxing authority. If a taxing authority does not maintain <br/>
<a id="pl.7.10"></a><var>7.10</var>public offices where telephone calls can be received by the authority, the authority may <br/>
<a id="pl.7.11"></a><var>7.11</var>inform the county of the lack of a public telephone number and the county shall not list a <br/>
<a id="pl.7.12"></a><var>7.12</var>telephone number for that taxing authority.<br/>
<a id="pl.7.13"></a><var>7.13</var>    (d) The notice must state for each parcel:<br/>
<a id="pl.7.14"></a><var>7.14</var>    (1) the market value of the property as determined under section 
         <statute_ref>273.11</statute_ref>, and used <br/>
<a id="pl.7.15"></a><var>7.15</var>for computing property taxes payable in the following year and for taxes payable in the <br/>
<a id="pl.7.16"></a><var>7.16</var>current year as each appears in the records of the county assessor on November 1 of the <br/>
<a id="pl.7.17"></a><var>7.17</var>current year; and, in the case of residential property, whether the property is classified as <br/>
<a id="pl.7.18"></a><var>7.18</var>homestead or nonhomestead. The notice must clearly inform taxpayers of the years to <br/>
<a id="pl.7.19"></a><var>7.19</var>which the market values apply and that the values are final values;<br/>
<a id="pl.7.20"></a><var>7.20</var>    (2) the items listed below, shown separately by county, city or town, and state general <br/>
<a id="pl.7.21"></a><var>7.21</var>tax, net of the residential and agricultural homestead credit under section 
         <statute_ref>273.1384</statute_ref>, voter <br/>
<a id="pl.7.22"></a><var>7.22</var>approved school levy, other local school levy, and the sum of the special taxing districts, <br/>
<a id="pl.7.23"></a><var>7.23</var>and as a total of all taxing authorities:<br/>
<a id="pl.7.24"></a><var>7.24</var>    (i) the actual tax for taxes payable in the current year; and<br/>
<a id="pl.7.25"></a><var>7.25</var>    (ii) the proposed tax amount.<br/>
<a id="pl.7.26"></a><var>7.26</var>    If the county levy under clause (2) includes an amount for a lake improvement <br/>
<a id="pl.7.27"></a><var>7.27</var>district as defined under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that <br/>
<a id="pl.7.28"></a><var>7.28</var>purpose must be separately stated from the remaining county levy amount.<br/>
<a id="pl.7.29"></a><var>7.29</var>    In the case of a town or the state general tax, the final tax shall also be its proposed <br/>
<a id="pl.7.30"></a><var>7.30</var>tax unless the town changes its levy at a special town meeting under section 
         <statute_ref>365.52</statute_ref>. If a <br/>
<a id="pl.7.31"></a><var>7.31</var>school district has certified under section 
         <statute_ref>126C.17, subdivision 9</statute_ref>, that a referendum will <br/>
<a id="pl.7.32"></a><var>7.32</var>be held in the school district at the November general election, the county auditor must <br/>
<a id="pl.7.33"></a><var>7.33</var>note next to the school district's proposed amount that a referendum is pending and that, if <br/>
<a id="pl.7.34"></a><var>7.34</var>approved by the voters, the tax amount may be higher than shown on the notice. In the <br/>
<a id="pl.7.35"></a><var>7.35</var>case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be <br/>
<a id="pl.7.36"></a><var>7.36</var>listed separately from the remaining amount of the city's levy. In the case of the city of <br/>
<a id="pl.8.1"></a><var>8.1</var>St. Paul, the levy for the St. Paul Library Agency must be listed separately from the <br/>
<a id="pl.8.2"></a><var>8.2</var>remaining amount of the city's levy. In the case of Ramsey County, any amount levied <br/>
<a id="pl.8.3"></a><var>8.3</var>under section 
         <statute_ref>134.07</statute_ref> may be listed separately from the remaining amount of the county's <br/>
<a id="pl.8.4"></a><var>8.4</var>levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax <br/>
<a id="pl.8.5"></a><var>8.5</var>under chapter 276A or 473F applies, the proposed tax levy on the captured value or the <br/>
<a id="pl.8.6"></a><var>8.6</var>proposed tax levy on the tax capacity subject to the areawide tax must each be stated <br/>
<a id="pl.8.7"></a><var>8.7</var>separately and not included in the sum of the special taxing districts; and<br/>
<a id="pl.8.8"></a><var>8.8</var>    (3) the increase or decrease between the total taxes payable in the current year and <br/>
<a id="pl.8.9"></a><var>8.9</var>the total proposed taxes, expressed as a percentage.<br/>
<a id="pl.8.10"></a><var>8.10</var>    For purposes of this section, the amount of the tax on homesteads qualifying under <br/>
<a id="pl.8.11"></a><var>8.11</var>the senior citizens' property tax deferral program under chapter 290B is the total amount <br/>
<a id="pl.8.12"></a><var>8.12</var>of property tax before subtraction of the deferred property tax amount.<br/>
<a id="pl.8.13"></a><var>8.13</var>    (e) The notice must clearly state that the proposed or final taxes do not include <br/>
<a id="pl.8.14"></a><var>8.14</var>the following:<br/>
<a id="pl.8.15"></a><var>8.15</var>    (1) special assessments;<br/>
<a id="pl.8.16"></a><var>8.16</var>    (2) levies approved by the voters after the date the proposed taxes are certified, <br/>
<a id="pl.8.17"></a><var>8.17</var>including bond referenda and school district levy referenda;<br/>
<a id="pl.8.18"></a><var>8.18</var>    (3) a levy limit increase approved by the voters by the first Tuesday after the first <br/>
<a id="pl.8.19"></a><var>8.19</var>Monday in November of the levy year as provided under section 
         <statute_ref>275.73</statute_ref>;<br/>
<a id="pl.8.20"></a><var>8.20</var>    (4) amounts necessary to pay cleanup or other costs due to a natural disaster <br/>
<a id="pl.8.21"></a><var>8.21</var>occurring after the date the proposed taxes are certified;<br/>
<a id="pl.8.22"></a><var>8.22</var>    (5) amounts necessary to pay tort judgments against the taxing authority that become <br/>
<a id="pl.8.23"></a><var>8.23</var>final after the date the proposed taxes are certified; and<br/>
<a id="pl.8.24"></a><var>8.24</var>    (6) the contamination tax imposed on properties which received market value <br/>
<a id="pl.8.25"></a><var>8.25</var>reductions for contamination.<br/>
<a id="pl.8.26"></a><var>8.26</var>    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or <br/>
<a id="pl.8.27"></a><var>8.27</var>the county treasurer to deliver the notice as required in this section does not invalidate the <br/>
<a id="pl.8.28"></a><var>8.28</var>proposed or final tax levy or the taxes payable pursuant to the tax levy.<br/>
<a id="pl.8.29"></a><var>8.29</var>    (g) If the notice the taxpayer receives under this section lists the property as <br/>
<a id="pl.8.30"></a><var>8.30</var>nonhomestead, and satisfactory documentation is provided to the county assessor by the <br/>
<a id="pl.8.31"></a><var>8.31</var>applicable deadline, and the property qualifies for the homestead classification in that <br/>
<a id="pl.8.32"></a><var>8.32</var>assessment year, the assessor shall reclassify the property to homestead for taxes payable <br/>
<a id="pl.8.33"></a><var>8.33</var>in the following year.<br/>
<a id="pl.8.34"></a><var>8.34</var>    (h) In the case of class 4 residential property used as a residence for lease or rental <br/>
<a id="pl.8.35"></a><var>8.35</var>periods of 30 days or more, the taxpayer must either:<br/>
<a id="pl.9.1"></a><var>9.1</var>    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, <br/>
<a id="pl.9.2"></a><var>9.2</var>renter, or lessee; or<br/>
<a id="pl.9.3"></a><var>9.3</var>    (2) post a copy of the notice in a conspicuous place on the premises of the property.<br/>
<a id="pl.9.4"></a><var>9.4</var>    The notice must be mailed or posted by the taxpayer by November 27 or within <br/>
<a id="pl.9.5"></a><var>9.5</var>three days of receipt of the notice, whichever is later. A taxpayer may notify the county <br/>
<a id="pl.9.6"></a><var>9.6</var>treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to <br/>
<a id="pl.9.7"></a><var>9.7</var>which the notice must be mailed in order to fulfill the requirements of this paragraph.<br/>
<a id="pl.9.8"></a><var>9.8</var>    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing <br/>
<a id="pl.9.9"></a><var>9.9</var>districts" means the following taxing districts in the seven-county metropolitan area that <br/>
<a id="pl.9.10"></a><var>9.10</var>levy a property tax for any of the specified purposes listed below:<br/>
<a id="pl.9.11"></a><var>9.11</var>    (1) Metropolitan Council under section 
         <statute_ref>473.132</statute_ref>, 
         <statute_ref>473.167</statute_ref>, 
         <statute_ref>473.249</statute_ref>, 
         <statute_ref>473.325</statute_ref>, <br/>
<statute_ref><a id="pl.9.12"></a><var>9.12</var>473.446
         </statute_ref>, 
         <statute_ref>473.521</statute_ref>, 
         <statute_ref>473.547</statute_ref>, or 
         <statute_ref>473.834</statute_ref>;<br/>
<a id="pl.9.13"></a><var>9.13</var>    (2) Metropolitan Airports Commission under section 
         <statute_ref>473.667</statute_ref>, 
         <statute_ref>473.671</statute_ref>, or 
         <statute_ref>473.672</statute_ref>; <br/>
<a id="pl.9.14"></a><var>9.14</var>and<br/>
<a id="pl.9.15"></a><var>9.15</var>    (3) Metropolitan Mosquito Control Commission under section 
         <statute_ref>473.711</statute_ref>.<br/>
<a id="pl.9.16"></a><var>9.16</var>    For purposes of this section, any levies made by the regional rail authorities in the <br/>
<a id="pl.9.17"></a><var>9.17</var>county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter <br/>
<a id="pl.9.18"></a><var>9.18</var>398A shall be included with the appropriate county's levy.<br/>
<a id="pl.9.19"></a><var>9.19</var>    (j) The governing body of a county, city, or school district may, with the consent <br/>
<a id="pl.9.20"></a><var>9.20</var>of the county board, include supplemental information with the statement of proposed <br/>
<a id="pl.9.21"></a><var>9.21</var>property taxes about the impact of state aid increases or decreases on property tax <br/>
<a id="pl.9.22"></a><var>9.22</var>increases or decreases and on the level of services provided in the affected jurisdiction. <br/>
<a id="pl.9.23"></a><var>9.23</var>This supplemental information may include information for the following year, the current <br/>
<a id="pl.9.24"></a><var>9.24</var>year, and for as many consecutive preceding years as deemed appropriate by the governing <br/>
<a id="pl.9.25"></a><var>9.25</var>body of the county, city, or school district. It may include only information regarding:<br/>
<a id="pl.9.26"></a><var>9.26</var>    (1) the impact of inflation as measured by the implicit price deflator for state and <br/>
<a id="pl.9.27"></a><var>9.27</var>local government purchases;<br/>
<a id="pl.9.28"></a><var>9.28</var>    (2) population growth and decline;<br/>
<a id="pl.9.29"></a><var>9.29</var>    (3) state or federal government action; and<br/>
<a id="pl.9.30"></a><var>9.30</var>    (4) other financial factors that affect the level of property taxation and local services <br/>
<a id="pl.9.31"></a><var>9.31</var>that the governing body of the county, city, or school district may deem appropriate to <br/>
<a id="pl.9.32"></a><var>9.32</var>include.<br/>
<a id="pl.9.33"></a><var>9.33</var>    The information may be presented using tables, written narrative, and graphic <br/>
<a id="pl.9.34"></a><var>9.34</var>representations and may contain instruction toward further sources of information or <br/>
<a id="pl.9.35"></a><var>9.35</var>opportunity for comment.<br/>
<a id="pl.9.36"></a><var>9.36</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.10.1"></a><var>10.1</var>    Sec. 6. Minnesota Statutes 2010, section 275.065, subdivision 3, is amended to read:<br/>
<a id="pl.10.2"></a><var>10.2</var>    Subd. 3. <b>Notice of proposed property taxes.</b> (a) The county auditor shall prepare <br/>
<a id="pl.10.3"></a><var>10.3</var>and the county treasurer shall deliver after November 10 and on or before November 24 <br/>
<a id="pl.10.4"></a><var>10.4</var>each year, by first class mail to each taxpayer at the address listed on the county's current <br/>
<a id="pl.10.5"></a><var>10.5</var>year's assessment roll, a notice of proposed property taxes. Upon written request by <br/>
<a id="pl.10.6"></a><var>10.6</var>the taxpayer, the treasurer may send the notice in electronic form or by electronic mail <br/>
<a id="pl.10.7"></a><var>10.7</var>instead of on paper or by ordinary mail.<br/>
<a id="pl.10.8"></a><var>10.8</var>    (b) The commissioner of revenue shall prescribe the form of the notice.<br/>
<a id="pl.10.9"></a><var>10.9</var>    (c) The notice must inform taxpayers that it contains the amount of property taxes <br/>
<a id="pl.10.10"></a><var>10.10</var>each taxing authority proposes to collect for taxes payable the following year. In the <br/>
<a id="pl.10.11"></a><var>10.11</var>case of a town, or in the case of the state general tax, the final tax amount will be its <br/>
<a id="pl.10.12"></a><var>10.12</var>proposed tax. The notice must clearly state For each city that has a population over 500, <br/>
<a id="pl.10.13"></a><var>10.13</var>county, school district, regional library authority established under section 
         <statute_ref>134.201</statute_ref>, and <br/>
<a id="pl.10.14"></a><var>10.14</var>metropolitan taxing districts as defined in paragraph (i), the notice must state the time and <br/>
<a id="pl.10.15"></a><var>10.15</var>place of a meeting for each taxing authority in which the budget and levy will be discussed <br/>
<a id="pl.10.16"></a><var>10.16</var>and public input allowed, prior to the final budget and levy determination. For each special <br/>
<a id="pl.10.17"></a><var>10.17</var>taxing district, the notice must: (1) list separately any levy by a special taxing district that <br/>
<a id="pl.10.18"></a><var>10.18</var>exceeds 25 percent of the total of all special taxing district levies; and (2) provide county <br/>
<a id="pl.10.19"></a><var>10.19</var>government contact information where additional information may be obtained for each <br/>
<a id="pl.10.20"></a><var>10.20</var>special taxing district. The taxing authorities must provide the county auditor with the <br/>
<a id="pl.10.21"></a><var>10.21</var>information to be included in the notice on or before the time it certifies its proposed <br/>
<a id="pl.10.22"></a><var>10.22</var>levy under subdivision 1. The public must be allowed to speak at that meeting, which <br/>
<a id="pl.10.23"></a><var>10.23</var>must occur after November 24 and must not be held before 6:00 p.m. It must provide a <br/>
<a id="pl.10.24"></a><var>10.24</var>telephone number for the taxing authority that taxpayers may call if they have questions <br/>
<a id="pl.10.25"></a><var>10.25</var>related to the notice and an address where comments will be received by mail, except that <br/>
<a id="pl.10.26"></a><var>10.26</var>no notice required under this section shall be interpreted as requiring the printing of a <br/>
<a id="pl.10.27"></a><var>10.27</var>personal telephone number or address as the contact information for a taxing authority. If <br/>
<a id="pl.10.28"></a><var>10.28</var>a taxing authority does not maintain public offices where telephone calls can be received <br/>
<a id="pl.10.29"></a><var>10.29</var>by the authority, the authority may inform the county of the lack of a public telephone <br/>
<a id="pl.10.30"></a><var>10.30</var>number and the county shall not list a telephone number for that taxing authority.<br/>
<a id="pl.10.31"></a><var>10.31</var>    (d) The notice must state for each parcel:<br/>
<a id="pl.10.32"></a><var>10.32</var>    (1) the market value of the property as determined under section 
         <statute_ref>273.11</statute_ref>, and used <br/>
<a id="pl.10.33"></a><var>10.33</var>for computing property taxes payable in the following year and for taxes payable in the <br/>
<a id="pl.10.34"></a><var>10.34</var>current year as each appears in the records of the county assessor on November 1 of the <br/>
<a id="pl.10.35"></a><var>10.35</var>current year; and, in the case of residential property, whether the property is classified as <br/>
<a id="pl.11.1"></a><var>11.1</var>homestead or nonhomestead. The notice must clearly inform taxpayers of the years to <br/>
<a id="pl.11.2"></a><var>11.2</var>which the market values apply and that the values are final values;<br/>
<a id="pl.11.3"></a><var>11.3</var>    (2) the items listed below, shown separately by county, city or town, and state <br/>
<a id="pl.11.4"></a><var>11.4</var>general tax, net of the residential and agricultural homestead credit under section <br/>
<statute_ref><a id="pl.11.5"></a><var>11.5</var>273.1384
         </statute_ref>, voter approved school levy, other local school levy, and the sum of the each <br/>
<a id="pl.11.6"></a><var>11.6</var>special taxing districts district, provided that the levies of all special taxing districts whose <br/>
<a id="pl.11.7"></a><var>11.7</var>levies do not exceed 25 percent of the total amount of all special taxing district levies may <br/>
<a id="pl.11.8"></a><var>11.8</var>be aggregated, and as a total of for all taxing authorities:<br/>
<a id="pl.11.9"></a><var>11.9</var>    (i) the actual tax for taxes payable in the current year; and<br/>
<a id="pl.11.10"></a><var>11.10</var>    (ii) the proposed tax amount.<br/>
<a id="pl.11.11"></a><var>11.11</var>    If the county levy under clause (2) includes an amount for a lake improvement <br/>
<a id="pl.11.12"></a><var>11.12</var>district as defined under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that <br/>
<a id="pl.11.13"></a><var>11.13</var>purpose must be separately stated from the remaining county levy amount.<br/>
<a id="pl.11.14"></a><var>11.14</var>    In the case of a town or the state general tax, the final tax shall also be its proposed <br/>
<a id="pl.11.15"></a><var>11.15</var>tax unless the town changes its levy at a special town meeting under section 
         <statute_ref>365.52</statute_ref>. If a <br/>
<a id="pl.11.16"></a><var>11.16</var>school district has certified under section 
         <statute_ref>126C.17, subdivision 9</statute_ref>, that a referendum will <br/>
<a id="pl.11.17"></a><var>11.17</var>be held in the school district at the November general election, the county auditor must <br/>
<a id="pl.11.18"></a><var>11.18</var>note next to the school district's proposed amount that a referendum is pending and that, if <br/>
<a id="pl.11.19"></a><var>11.19</var>approved by the voters, the tax amount may be higher than shown on the notice. In the <br/>
<a id="pl.11.20"></a><var>11.20</var>case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be <br/>
<a id="pl.11.21"></a><var>11.21</var>listed separately from the remaining amount of the city's levy. In the case of the city of <br/>
<a id="pl.11.22"></a><var>11.22</var>St. Paul, the levy for the St. Paul Library Agency must be listed separately from the <br/>
<a id="pl.11.23"></a><var>11.23</var>remaining amount of the city's levy. In the case of Ramsey County, any amount levied <br/>
<a id="pl.11.24"></a><var>11.24</var>under section 
         <statute_ref>134.07</statute_ref> may be listed separately from the remaining amount of the county's <br/>
<a id="pl.11.25"></a><var>11.25</var>levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax <br/>
<a id="pl.11.26"></a><var>11.26</var>under chapter 276A or 473F applies, the proposed tax levy on the captured value or the <br/>
<a id="pl.11.27"></a><var>11.27</var>proposed tax levy on the tax capacity subject to the areawide tax must each be stated <br/>
<a id="pl.11.28"></a><var>11.28</var>separately and not included in the sum of the special taxing districts; and<br/>
<a id="pl.11.29"></a><var>11.29</var>    (3) the increase or decrease between the total taxes payable in the current year and <br/>
<a id="pl.11.30"></a><var>11.30</var>the total proposed taxes, expressed as a percentage.<br/>
<a id="pl.11.31"></a><var>11.31</var>    For purposes of this section, the amount of the tax on homesteads qualifying under <br/>
<a id="pl.11.32"></a><var>11.32</var>the senior citizens' property tax deferral program under chapter 290B is the total amount <br/>
<a id="pl.11.33"></a><var>11.33</var>of property tax before subtraction of the deferred property tax amount.<br/>
<a id="pl.11.34"></a><var>11.34</var>    (e) The notice must clearly state that the proposed or final taxes do not include <br/>
<a id="pl.11.35"></a><var>11.35</var>the following:<br/>
<a id="pl.11.36"></a><var>11.36</var>    (1) special assessments;<br/>
<a id="pl.12.1"></a><var>12.1</var>    (2) levies approved by the voters after the date the proposed taxes are certified, <br/>
<a id="pl.12.2"></a><var>12.2</var>including bond referenda and school district levy referenda;<br/>
<a id="pl.12.3"></a><var>12.3</var>    (3) a levy limit increase approved by the voters by the first Tuesday after the first <br/>
<a id="pl.12.4"></a><var>12.4</var>Monday in November of the levy year as provided under section 
         <statute_ref>275.73</statute_ref>;<br/>
<a id="pl.12.5"></a><var>12.5</var>    (4) amounts necessary to pay cleanup or other costs due to a natural disaster <br/>
<a id="pl.12.6"></a><var>12.6</var>occurring after the date the proposed taxes are certified;<br/>
<a id="pl.12.7"></a><var>12.7</var>    (5) amounts necessary to pay tort judgments against the taxing authority that become <br/>
<a id="pl.12.8"></a><var>12.8</var>final after the date the proposed taxes are certified; and<br/>
<a id="pl.12.9"></a><var>12.9</var>    (6) the contamination tax imposed on properties which received market value <br/>
<a id="pl.12.10"></a><var>12.10</var>reductions for contamination.<br/>
<a id="pl.12.11"></a><var>12.11</var>    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or <br/>
<a id="pl.12.12"></a><var>12.12</var>the county treasurer to deliver the notice as required in this section does not invalidate the <br/>
<a id="pl.12.13"></a><var>12.13</var>proposed or final tax levy or the taxes payable pursuant to the tax levy.<br/>
<a id="pl.12.14"></a><var>12.14</var>    (g) If the notice the taxpayer receives under this section lists the property as <br/>
<a id="pl.12.15"></a><var>12.15</var>nonhomestead, and satisfactory documentation is provided to the county assessor by the <br/>
<a id="pl.12.16"></a><var>12.16</var>applicable deadline, and the property qualifies for the homestead classification in that <br/>
<a id="pl.12.17"></a><var>12.17</var>assessment year, the assessor shall reclassify the property to homestead for taxes payable <br/>
<a id="pl.12.18"></a><var>12.18</var>in the following year.<br/>
<a id="pl.12.19"></a><var>12.19</var>    (h) In the case of class 4 residential property used as a residence for lease or rental <br/>
<a id="pl.12.20"></a><var>12.20</var>periods of 30 days or more, the taxpayer must either:<br/>
<a id="pl.12.21"></a><var>12.21</var>    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, <br/>
<a id="pl.12.22"></a><var>12.22</var>renter, or lessee; or<br/>
<a id="pl.12.23"></a><var>12.23</var>    (2) post a copy of the notice in a conspicuous place on the premises of the property.<br/>
<a id="pl.12.24"></a><var>12.24</var>    The notice must be mailed or posted by the taxpayer by November 27 or within <br/>
<a id="pl.12.25"></a><var>12.25</var>three days of receipt of the notice, whichever is later. A taxpayer may notify the county <br/>
<a id="pl.12.26"></a><var>12.26</var>treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to <br/>
<a id="pl.12.27"></a><var>12.27</var>which the notice must be mailed in order to fulfill the requirements of this paragraph.<br/>
<a id="pl.12.28"></a><var>12.28</var>    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing <br/>
<a id="pl.12.29"></a><var>12.29</var>districts" means the following taxing districts in the seven-county metropolitan area that <br/>
<a id="pl.12.30"></a><var>12.30</var>levy a property tax for any of the specified purposes listed below:<br/>
<a id="pl.12.31"></a><var>12.31</var>    (1) Metropolitan Council under section 
         <statute_ref>473.132</statute_ref>, 
         <statute_ref>473.167</statute_ref>, 
         <statute_ref>473.249</statute_ref>, 
         <statute_ref>473.325</statute_ref>, <br/>
<statute_ref><a id="pl.12.32"></a><var>12.32</var>473.446
         </statute_ref>, 
         <statute_ref>473.521</statute_ref>, 
         <statute_ref>473.547</statute_ref>, or 
         <statute_ref>473.834</statute_ref>;<br/>
<a id="pl.12.33"></a><var>12.33</var>    (2) Metropolitan Airports Commission under section 
         <statute_ref>473.667</statute_ref>, 
         <statute_ref>473.671</statute_ref>, or 
         <statute_ref>473.672</statute_ref>; <br/>
<a id="pl.12.34"></a><var>12.34</var>and<br/>
<a id="pl.12.35"></a><var>12.35</var>    (3) Metropolitan Mosquito Control Commission under section 
         <statute_ref>473.711</statute_ref>.<br/>
<a id="pl.13.1"></a><var>13.1</var>    For purposes of this section, any levies made by the regional rail authorities in the <br/>
<a id="pl.13.2"></a><var>13.2</var>county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter <br/>
<a id="pl.13.3"></a><var>13.3</var>398A shall be included with the appropriate county's levy.<br/>
<a id="pl.13.4"></a><var>13.4</var>    (j) The governing body of a county, city, or school district may, with the consent <br/>
<a id="pl.13.5"></a><var>13.5</var>of the county board, include supplemental information with the statement of proposed <br/>
<a id="pl.13.6"></a><var>13.6</var>property taxes about the impact of state aid increases or decreases on property tax <br/>
<a id="pl.13.7"></a><var>13.7</var>increases or decreases and on the level of services provided in the affected jurisdiction. <br/>
<a id="pl.13.8"></a><var>13.8</var>This supplemental information may include information for the following year, the current <br/>
<a id="pl.13.9"></a><var>13.9</var>year, and for as many consecutive preceding years as deemed appropriate by the governing <br/>
<a id="pl.13.10"></a><var>13.10</var>body of the county, city, or school district. It may include only information regarding:<br/>
<a id="pl.13.11"></a><var>13.11</var>    (1) the impact of inflation as measured by the implicit price deflator for state and <br/>
<a id="pl.13.12"></a><var>13.12</var>local government purchases;<br/>
<a id="pl.13.13"></a><var>13.13</var>    (2) population growth and decline;<br/>
<a id="pl.13.14"></a><var>13.14</var>    (3) state or federal government action; and<br/>
<a id="pl.13.15"></a><var>13.15</var>    (4) other financial factors that affect the level of property taxation and local services <br/>
<a id="pl.13.16"></a><var>13.16</var>that the governing body of the county, city, or school district may deem appropriate to <br/>
<a id="pl.13.17"></a><var>13.17</var>include.<br/>
<a id="pl.13.18"></a><var>13.18</var>    The information may be presented using tables, written narrative, and graphic <br/>
<a id="pl.13.19"></a><var>13.19</var>representations and may contain instruction toward further sources of information or <br/>
<a id="pl.13.20"></a><var>13.20</var>opportunity for comment.<br/>
<a id="pl.13.21"></a><var>13.21</var><b>EFFECTIVE DATE.</b>This section is effective for tax statements relating to taxes <br/>
<a id="pl.13.22"></a><var>13.22</var>payable in 2014 and thereafter.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.13.23"></a><var>13.23</var>    Sec. 7. Minnesota Statutes 2011 Supplement, section 276.04, subdivision 2, is <br/>
<a id="pl.13.24"></a><var>13.24</var>amended to read:<br/>
<a id="pl.13.25"></a><var>13.25</var>    Subd. 2. <b>Contents of tax statements.</b> (a) The treasurer shall provide for the <br/>
<a id="pl.13.26"></a><var>13.26</var>printing of the tax statements. The commissioner of revenue shall prescribe the form of <br/>
<a id="pl.13.27"></a><var>13.27</var>the property tax statement and its contents. The tax statement must not state or imply <br/>
<a id="pl.13.28"></a><var>13.28</var>that property tax credits are paid by the state of Minnesota. The statement must contain <br/>
<a id="pl.13.29"></a><var>13.29</var>a tabulated statement of the dollar amount due to each taxing authority and the amount <br/>
<a id="pl.13.30"></a><var>13.30</var>of the state tax from the parcel of real property for which a particular tax statement is <br/>
<a id="pl.13.31"></a><var>13.31</var>prepared. The dollar amounts attributable to the county, the state tax, the voter approved <br/>
<a id="pl.13.32"></a><var>13.32</var>school tax, the other local school tax, the township or municipality, and the total of <br/>
<a id="pl.13.33"></a><var>13.33</var>the metropolitan special taxing districts as defined in section 
         <statute_ref>275.065, subdivision 3</statute_ref>, <br/>
<a id="pl.13.34"></a><var>13.34</var>paragraph (i), must be separately stated. The amounts due all other special taxing districts, <br/>
<a id="pl.13.35"></a><var>13.35</var>if any, may be aggregated except that (1) any levies made by the regional rail authorities <br/>
<a id="pl.14.1"></a><var>14.1</var>in the county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under <br/>
<a id="pl.14.2"></a><var>14.2</var>chapter 398A shall be listed on a separate line directly under the appropriate county's <br/>
<a id="pl.14.3"></a><var>14.3</var>levy, and (2) any levy by a special taxing district that exceeds 25 percent of the total of all <br/>
<a id="pl.14.4"></a><var>14.4</var>special taxing district levies on a tax statement must be separately stated. If the county <br/>
<a id="pl.14.5"></a><var>14.5</var>levy under this paragraph includes an amount for a lake improvement district as defined <br/>
<a id="pl.14.6"></a><var>14.6</var>under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that purpose must be <br/>
<a id="pl.14.7"></a><var>14.7</var>separately stated from the remaining county levy amount. In the case of Ramsey County, <br/>
<a id="pl.14.8"></a><var>14.8</var>if the county levy under this paragraph includes an amount for public library service <br/>
<a id="pl.14.9"></a><var>14.9</var>under section 
         <statute_ref>134.07</statute_ref>, the amount attributable for that purpose may be separated from the <br/>
<a id="pl.14.10"></a><var>14.10</var>remaining county levy amount. The amount of the tax on homesteads qualifying under the <br/>
<a id="pl.14.11"></a><var>14.11</var>senior citizens' property tax deferral program under chapter 290B is the total amount of <br/>
<a id="pl.14.12"></a><var>14.12</var>property tax before subtraction of the deferred property tax amount. The amount of the <br/>
<a id="pl.14.13"></a><var>14.13</var>tax on contamination value imposed under sections 
         <statute_ref>270.91</statute_ref> to 
         <statute_ref>270.98</statute_ref>, if any, must also <br/>
<a id="pl.14.14"></a><var>14.14</var>be separately stated. The dollar amounts, including the dollar amount of any special <br/>
<a id="pl.14.15"></a><var>14.15</var>assessments, may be rounded to the nearest even whole dollar. For purposes of this section <br/>
<a id="pl.14.16"></a><var>14.16</var>whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar. <br/>
<a id="pl.14.17"></a><var>14.17</var>The amount of market value excluded under section 
         <statute_ref>273.11, subdivision 16</statute_ref>, if any, must <br/>
<a id="pl.14.18"></a><var>14.18</var>also be listed on the tax statement.<br/>
<a id="pl.14.19"></a><var>14.19</var>    (b) The property tax statements for manufactured homes and sectional structures <br/>
<a id="pl.14.20"></a><var>14.20</var>taxed as personal property shall contain the same information that is required on the <br/>
<a id="pl.14.21"></a><var>14.21</var>tax statements for real property.<br/>
<a id="pl.14.22"></a><var>14.22</var>    (c) Real and personal property tax statements must contain the following information <br/>
<a id="pl.14.23"></a><var>14.23</var>in the order given in this paragraph. The information must contain the current year tax <br/>
<a id="pl.14.24"></a><var>14.24</var>information in the right column with the corresponding information for the previous year <br/>
<a id="pl.14.25"></a><var>14.25</var>in a column on the left:<br/>
<a id="pl.14.26"></a><var>14.26</var>    (1) the property's estimated market value under section 
         <statute_ref>273.11, subdivision 1</statute_ref>;<br/>
<a id="pl.14.27"></a><var>14.27</var>(2) the property's homestead market value exclusion under section 
         <statute_ref>273.13</statute_ref>, <br/>
<a id="pl.14.28"></a><var>14.28</var>subdivision 35;<br/>
<a id="pl.14.29"></a><var>14.29</var>    (3) the property's taxable market value after reductions under sections 
         <statute_ref>273.11</statute_ref>, <br/>
<a id="pl.14.30"></a><var>14.30</var>subdivisions 1a and 16, and 
         <statute_ref>273.13, subdivision 35</statute_ref>;<br/>
<a id="pl.14.31"></a><var>14.31</var>    (4) the property's gross tax, before credits;<br/>
<a id="pl.14.32"></a><var>14.32</var>    (5) for homestead agricultural properties, the credit under section 
         <statute_ref>273.1384</statute_ref>;<br/>
<a id="pl.14.33"></a><var>14.33</var>    (6) any credits received under sections 
         <statute_ref>273.119</statute_ref>; 
         <statute_ref>273.1234</statute_ref> or 
         <statute_ref>273.1235</statute_ref>; 
         <statute_ref>273.135</statute_ref>; <br/>
<statute_ref><a id="pl.14.34"></a><var>14.34</var>273.1391
         </statute_ref>; 
         <statute_ref>273.1398, subdivision 4</statute_ref>; 
         <statute_ref>469.171</statute_ref>; and 
         <statute_ref>473H.10</statute_ref>, except that the amount of <br/>
<a id="pl.14.35"></a><var>14.35</var>credit received under section 
         <statute_ref>273.135</statute_ref> must be separately stated and identified as "taconite <br/>
<a id="pl.14.36"></a><var>14.36</var>tax relief"; and<br/>
<a id="pl.15.1"></a><var>15.1</var>    (7) the net tax payable in the manner required in paragraph (a).<br/>
<a id="pl.15.2"></a><var>15.2</var>    (d) If the county uses envelopes for mailing property tax statements and if the county <br/>
<a id="pl.15.3"></a><var>15.3</var>agrees, a taxing district may include a notice with the property tax statement notifying <br/>
<a id="pl.15.4"></a><var>15.4</var>taxpayers when the taxing district will begin its budget deliberations for the current <br/>
<a id="pl.15.5"></a><var>15.5</var>year, and encouraging taxpayers to attend the hearings. If the county allows notices to <br/>
<a id="pl.15.6"></a><var>15.6</var>be included in the envelope containing the property tax statement, and if more than <br/>
<a id="pl.15.7"></a><var>15.7</var>one taxing district relative to a given property decides to include a notice with the tax <br/>
<a id="pl.15.8"></a><var>15.8</var>statement, the county treasurer or auditor must coordinate the process and may combine <br/>
<a id="pl.15.9"></a><var>15.9</var>the information on a single announcement.<br/>
<a id="pl.15.10"></a><var>15.10</var><b>EFFECTIVE DATE.</b>This section is effective for tax statements relating to taxes <br/>
<a id="pl.15.11"></a><var>15.11</var>payable in 2014 and thereafter.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.15.12"></a><var>15.12</var>    Sec. 8. Minnesota Statutes 2010, section 290A.04, subdivision 2h, is amended to read:<br/>
<a id="pl.15.13"></a><var>15.13</var>    Subd. 2h. <b>Additional refund.</b> (a) If the gross property taxes payable on a homestead <br/>
<a id="pl.15.14"></a><var>15.14</var>increase more than 12 percent over the property taxes payable in the prior year on the same <br/>
<a id="pl.15.15"></a><var>15.15</var>property that is owned and occupied by the same owner on January 2 of both years, and the <br/>
<a id="pl.15.16"></a><var>15.16</var>amount of that increase is $100 or more, a claimant who is a homeowner shall be allowed <br/>
<a id="pl.15.17"></a><var>15.17</var>an additional refund equal to 60 75 percent of the amount of the increase over the greater <br/>
<a id="pl.15.18"></a><var>15.18</var>of 12 percent of the prior year's property taxes payable or $100. This subdivision shall not <br/>
<a id="pl.15.19"></a><var>15.19</var>apply to any increase in the gross property taxes payable attributable to improvements <br/>
<a id="pl.15.20"></a><var>15.20</var>made to the homestead after the assessment date for the prior year's taxes. This subdivision <br/>
<a id="pl.15.21"></a><var>15.21</var>shall not apply to any increase in the gross property taxes payable attributable to the <br/>
<a id="pl.15.22"></a><var>15.22</var>termination of valuation exclusions under section 
         <statute_ref>273.11, subdivision 16</statute_ref>.<br/>
<a id="pl.15.23"></a><var>15.23</var>The maximum refund allowed under this subdivision is $1,000.<br/>
<a id="pl.15.24"></a><var>15.24</var>(b) For purposes of this subdivision "gross property taxes payable" means property <br/>
<a id="pl.15.25"></a><var>15.25</var>taxes payable determined without regard to the refund allowed under this subdivision.<br/>
<a id="pl.15.26"></a><var>15.26</var>(c) In addition to the other proofs required by this chapter, each claimant under <br/>
<a id="pl.15.27"></a><var>15.27</var>this subdivision shall file with the property tax refund return a copy of the property tax <br/>
<a id="pl.15.28"></a><var>15.28</var>statement for taxes payable in the preceding year or other documents required by the <br/>
<a id="pl.15.29"></a><var>15.29</var>commissioner.<br/>
<a id="pl.15.30"></a><var>15.30</var>(d) Upon request, the appropriate county official shall make available the names and <br/>
<a id="pl.15.31"></a><var>15.31</var>addresses of the property taxpayers who may be eligible for the additional property tax <br/>
<a id="pl.15.32"></a><var>15.32</var>refund under this section. The information shall be provided on a magnetic computer <br/>
<a id="pl.15.33"></a><var>15.33</var>disk. The county may recover its costs by charging the person requesting the information <br/>
<a id="pl.15.34"></a><var>15.34</var>the reasonable cost for preparing the data. The information may not be used for any <br/>
<a id="pl.16.1"></a><var>16.1</var>purpose other than for notifying the homeowner of potential eligibility and assisting the <br/>
<a id="pl.16.2"></a><var>16.2</var>homeowner, without charge, in preparing a refund claim.<br/>
<a id="pl.16.3"></a><var>16.3</var><b>EFFECTIVE DATE.</b>This section is effective beginning with refunds based on <br/>
<a id="pl.16.4"></a><var>16.4</var>taxes payable in 2013.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.16.5"></a><var>16.5</var>    Sec. 9. <b>[471.703] EXPENDITURE TYPE REPORTING.</b><br/>
<a id="pl.16.6"></a><var>16.6</var>    Subdivision 1. <b>Purpose.</b> In order to facilitate involvement of the public in local <br/>
<a id="pl.16.7"></a><var>16.7</var>government budgeting, municipalities shall provide the following budgetary information <br/>
<a id="pl.16.8"></a><var>16.8</var>on a municipal Web site, except as provided in subdivision 4, and publicize the availability <br/>
<a id="pl.16.9"></a><var>16.9</var>of this information as part of the property tax and budget notices required in section <br/>
<a id="pl.16.10"></a><var>16.10</var>275.065.<br/>
<a id="pl.16.11"></a><var>16.11</var>    Subd. 2. <b>Definitions.</b> (a) For purposes of this section, the following terms have the <br/>
<a id="pl.16.12"></a><var>16.12</var>meanings given in this subdivision.<br/>
<a id="pl.16.13"></a><var>16.13</var>(b) "Municipality" means a county with a population of more than 5,000 or a home <br/>
<a id="pl.16.14"></a><var>16.14</var>rule charter or statutory city with a population of more than 5,000.<br/>
<a id="pl.16.15"></a><var>16.15</var>(c) "Population" means the population of the municipality as established by the last <br/>
<a id="pl.16.16"></a><var>16.16</var>federal census, by a special census conducted under contract with the United States Bureau <br/>
<a id="pl.16.17"></a><var>16.17</var>of the Census, by a population estimate made by the Metropolitan Council pursuant to <br/>
<a id="pl.16.18"></a><var>16.18</var>section 
<statute_ref>473.24</statute_ref>, or by a population estimate of the state demographer made pursuant to <br/>
<a id="pl.16.19"></a><var>16.19</var>section 
<statute_ref>4A.02</statute_ref>, whichever is the most recent as to the stated date of the count or estimate for <br/>
<a id="pl.16.20"></a><var>16.20</var>the preceding calendar year, and which has been certified to the commissioner of revenue <br/>
<a id="pl.16.21"></a><var>16.21</var>on or before July 15 of the year in which the information is required to be reported.<br/>
<a id="pl.16.22"></a><var>16.22</var>    Subd. 3. <b>Electronic budgetary information.</b> (a) By July 31 of each year, a <br/>
<a id="pl.16.23"></a><var>16.23</var>municipality shall publish on its Web site, except as provided in subdivision 4, four years <br/>
<a id="pl.16.24"></a><var>16.24</var>of budget information on both revenues and expenditures organized by function and by <br/>
<a id="pl.16.25"></a><var>16.25</var>expenditure type. The four years shall include actual data from the three most recently <br/>
<a id="pl.16.26"></a><var>16.26</var>concluded budget years and estimated data for the current budget year.<br/>
<a id="pl.16.27"></a><var>16.27</var>(b) The governmental funds included in the budget information required under <br/>
<a id="pl.16.28"></a><var>16.28</var>this section shall include the municipality's general fund, debt service fund, and special <br/>
<a id="pl.16.29"></a><var>16.29</var>revenue funds, except for special revenue funds specifically used for the acquisition and <br/>
<a id="pl.16.30"></a><var>16.30</var>construction of major capital facilities. The reported information shall also exclude <br/>
<a id="pl.16.31"></a><var>16.31</var>enterprise funds and fiduciary funds.<br/>
<a id="pl.16.32"></a><var>16.32</var>(c) The forms and reporting requirements for revenues and expenditures by function <br/>
<a id="pl.16.33"></a><var>16.33</var>shall be established by the state auditor's office and shall be based on the revenue and <br/>
<a id="pl.16.34"></a><var>16.34</var>expenditure breakdowns used by that office in the five-year summary tables for annual <br/>
<a id="pl.17.1"></a><var>17.1</var>revenue, expenditure, and debt reports for counties and cities with a population over <br/>
<a id="pl.17.2"></a><var>17.2</var>2,500, under section 6.75.<br/>
<a id="pl.17.3"></a><var>17.3</var>(d) The forms and reporting requirements for expenditures by expenditure type shall <br/>
<a id="pl.17.4"></a><var>17.4</var>be established by the state auditor's office and at minimum shall include the following line <br/>
<a id="pl.17.5"></a><var>17.5</var>items: employee costs, purchased services, supplies, central services, capital items, debt <br/>
<a id="pl.17.6"></a><var>17.6</var>service, transfer to other funds, and miscellaneous; with employee costs further subdivided <br/>
<a id="pl.17.7"></a><var>17.7</var>into the following items: wages and salaries, pensions, Social Security, health care, and <br/>
<a id="pl.17.8"></a><var>17.8</var>other benefits. The state auditor shall consult with the commissioner of management and <br/>
<a id="pl.17.9"></a><var>17.9</var>budget, city and county representatives, and members of the governmental accounting <br/>
<a id="pl.17.10"></a><var>17.10</var>community in developing the definition of expenditure types for reporting purposes.<br/>
<a id="pl.17.11"></a><var>17.11</var>    Subd. 4. <b>Alternative publication of budgetary information.</b> A municipality <br/>
<a id="pl.17.12"></a><var>17.12</var>that does not maintain an official Web site must either (1) set up a separate Web site to <br/>
<a id="pl.17.13"></a><var>17.13</var>make accessible the budgetary information as required in subdivision 3, or (2) publish the <br/>
<a id="pl.17.14"></a><var>17.14</var>same information required in subdivision 3 by August 31 of each year in one issue of the <br/>
<a id="pl.17.15"></a><var>17.15</var>official newspaper of the municipality. If a county publishes the information in its official <br/>
<a id="pl.17.16"></a><var>17.16</var>newspaper it must also publish the same information in one other newspaper, if one of <br/>
<a id="pl.17.17"></a><var>17.17</var>general circulation is located in a different city in the county than the official newspaper. <br/>
<a id="pl.17.18"></a><var>17.18</var>The state auditor must prescribe the form for the newspaper notice.<br/>
<a id="pl.17.19"></a><var>17.19</var>    Subd. 5. <b>Incentives.</b> In 2012 only, a city or county that complies with the <br/>
<a id="pl.17.20"></a><var>17.20</var>requirement of this section and section 6.91, subdivision 1, shall receive the benefits <br/>
<a id="pl.17.21"></a><var>17.21</var>pursuant to section 6.91, subdivision 2.<br/>
<a id="pl.17.22"></a><var>17.22</var>    Subd. 6. <b>Penalties.</b> In 2013 and thereafter, failure of a municipality to provide <br/>
<a id="pl.17.23"></a><var>17.23</var>the information required in this section shall result in the withholding of aids payable <br/>
<a id="pl.17.24"></a><var>17.24</var>the following calendar year under sections 162.01 to 162.14, 423A.02, and 477A.011 <br/>
<a id="pl.17.25"></a><var>17.25</var>to 477A.014.<br/>
<a id="pl.17.26"></a><var>17.26</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.17.27"></a><var>17.27</var>    Sec. 10. Minnesota Statutes 2010, section 477A.011, subdivision 36, is amended to <br/>
<a id="pl.17.28"></a><var>17.28</var>read:<br/>
<a id="pl.17.29"></a><var>17.29</var>    Subd. 36. <b>City aid base.</b> (a) Except as otherwise provided in this subdivision, <br/>
<a id="pl.17.30"></a><var>17.30</var>"city aid base" is zero.<br/>
<a id="pl.17.31"></a><var>17.31</var>    (b) The city aid base for any city with a population less than 500 is increased by <br/>
<a id="pl.17.32"></a><var>17.32</var>$40,000 for aids payable in calendar year 1995 and thereafter, and the maximum amount <br/>
<a id="pl.17.33"></a><var>17.33</var>of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, paragraph (c), is also <br/>
<a id="pl.17.34"></a><var>17.34</var>increased by $40,000 for aids payable in calendar year 1995 only, provided that:<br/>
<a id="pl.17.35"></a><var>17.35</var>    (i) the average total tax capacity rate for taxes payable in 1995 exceeds 200 percent;<br/>
<a id="pl.18.1"></a><var>18.1</var>    (ii) the city portion of the tax capacity rate exceeds 100 percent; and<br/>
<a id="pl.18.2"></a><var>18.2</var>    (iii) its city aid base is less than $60 per capita.<br/>
<a id="pl.18.3"></a><var>18.3</var>    (c) The city aid base for a city is increased by $20,000 in 1998 and thereafter and <br/>
<a id="pl.18.4"></a><var>18.4</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.18.5"></a><var>18.5</var>paragraph (c), is also increased by $20,000 in calendar year 1998 only, provided that:<br/>
<a id="pl.18.6"></a><var>18.6</var>    (i) the city has a population in 1994 of 2,500 or more;<br/>
<a id="pl.18.7"></a><var>18.7</var>    (ii) the city is located in a county, outside of the metropolitan area, which contains a <br/>
<a id="pl.18.8"></a><var>18.8</var>city of the first class;<br/>
<a id="pl.18.9"></a><var>18.9</var>    (iii) the city's net tax capacity used in calculating its 1996 aid under section <br/>
<statute_ref><a id="pl.18.10"></a><var>18.10</var>477A.013
         </statute_ref> is less than $400 per capita; and<br/>
<a id="pl.18.11"></a><var>18.11</var>    (iv) at least four percent of the total net tax capacity, for taxes payable in 1996, of <br/>
<a id="pl.18.12"></a><var>18.12</var>property located in the city is classified as railroad property.<br/>
<a id="pl.18.13"></a><var>18.13</var>    (d) The city aid base for a city is increased by $200,000 in 1999 and thereafter and <br/>
<a id="pl.18.14"></a><var>18.14</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.18.15"></a><var>18.15</var>paragraph (c), is also increased by $200,000 in calendar year 1999 only, provided that:<br/>
<a id="pl.18.16"></a><var>18.16</var>    (i) the city was incorporated as a statutory city after December 1, 1993;<br/>
<a id="pl.18.17"></a><var>18.17</var>    (ii) its city aid base does not exceed $5,600; and<br/>
<a id="pl.18.18"></a><var>18.18</var>    (iii) the city had a population in 1996 of 5,000 or more.<br/>
<a id="pl.18.19"></a><var>18.19</var>    (e) The city aid base for a city is increased by $150,000 for aids payable in 2000 and <br/>
<a id="pl.18.20"></a><var>18.20</var>thereafter, and the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, <br/>
<a id="pl.18.21"></a><var>18.21</var>subdivision 9
         </statute_ref>, paragraph (c), is also increased by $150,000 in calendar year 2000 only, <br/>
<a id="pl.18.22"></a><var>18.22</var>provided that:<br/>
<a id="pl.18.23"></a><var>18.23</var>    (1) the city has a population that is greater than 1,000 and less than 2,500;<br/>
<a id="pl.18.24"></a><var>18.24</var>    (2) its commercial and industrial percentage for aids payable in 1999 is greater <br/>
<a id="pl.18.25"></a><var>18.25</var>than 45 percent; and<br/>
<a id="pl.18.26"></a><var>18.26</var>    (3) the total market value of all commercial and industrial property in the city <br/>
<a id="pl.18.27"></a><var>18.27</var>for assessment year 1999 is at least 15 percent less than the total market value of all <br/>
<a id="pl.18.28"></a><var>18.28</var>commercial and industrial property in the city for assessment year 1998.<br/>
<a id="pl.18.29"></a><var>18.29</var>    (f) The city aid base for a city is increased by $200,000 in 2000 and thereafter, and <br/>
<a id="pl.18.30"></a><var>18.30</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.18.31"></a><var>18.31</var>paragraph (c), is also increased by $200,000 in calendar year 2000 only, provided that:<br/>
<a id="pl.18.32"></a><var>18.32</var>    (1) the city had a population in 1997 of 2,500 or more;<br/>
<a id="pl.18.33"></a><var>18.33</var>    (2) the net tax capacity of the city used in calculating its 1999 aid under section <br/>
<statute_ref><a id="pl.18.34"></a><var>18.34</var>477A.013
         </statute_ref> is less than $650 per capita;<br/>
<a id="pl.18.35"></a><var>18.35</var>    (3) the pre-1940 housing percentage of the city used in calculating 1999 aid under <br/>
<a id="pl.18.36"></a><var>18.36</var>section 
         <statute_ref>477A.013</statute_ref> is greater than 12 percent;<br/>
<a id="pl.19.1"></a><var>19.1</var>    (4) the 1999 local government aid of the city under section 
         <statute_ref>477A.013</statute_ref> is less than <br/>
<a id="pl.19.2"></a><var>19.2</var>20 percent of the amount that the formula aid of the city would have been if the need <br/>
<a id="pl.19.3"></a><var>19.3</var>increase percentage was 100 percent; and<br/>
<a id="pl.19.4"></a><var>19.4</var>    (5) the city aid base of the city used in calculating aid under section 
         <statute_ref>477A.013 <br/>
</statute_ref><a id="pl.19.5"></a><var>19.5</var>is less than $7 per capita.<br/>
<a id="pl.19.6"></a><var>19.6</var>    (g) The city aid base for a city is increased by $102,000 in 2000 and thereafter, and <br/>
<a id="pl.19.7"></a><var>19.7</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.19.8"></a><var>19.8</var>paragraph (c), is also increased by $102,000 in calendar year 2000 only, provided that:<br/>
<a id="pl.19.9"></a><var>19.9</var>    (1) the city has a population in 1997 of 2,000 or more;<br/>
<a id="pl.19.10"></a><var>19.10</var>    (2) the net tax capacity of the city used in calculating its 1999 aid under section <br/>
<statute_ref><a id="pl.19.11"></a><var>19.11</var>477A.013
         </statute_ref> is less than $455 per capita;<br/>
<a id="pl.19.12"></a><var>19.12</var>    (3) the net levy of the city used in calculating 1999 aid under section 
         <statute_ref>477A.013</statute_ref> is <br/>
<a id="pl.19.13"></a><var>19.13</var>greater than $195 per capita; and<br/>
<a id="pl.19.14"></a><var>19.14</var>    (4) the 1999 local government aid of the city under section 
         <statute_ref>477A.013</statute_ref> is less than <br/>
<a id="pl.19.15"></a><var>19.15</var>38 percent of the amount that the formula aid of the city would have been if the need <br/>
<a id="pl.19.16"></a><var>19.16</var>increase percentage was 100 percent.<br/>
<a id="pl.19.17"></a><var>19.17</var>    (h) The city aid base for a city is increased by $32,000 in 2001 and thereafter, and <br/>
<a id="pl.19.18"></a><var>19.18</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.19.19"></a><var>19.19</var>paragraph (c), is also increased by $32,000 in calendar year 2001 only, provided that:<br/>
<a id="pl.19.20"></a><var>19.20</var>    (1) the city has a population in 1998 that is greater than 200 but less than 500;<br/>
<a id="pl.19.21"></a><var>19.21</var>    (2) the city's revenue need used in calculating aids payable in 2000 was greater <br/>
<a id="pl.19.22"></a><var>19.22</var>than $200 per capita;<br/>
<a id="pl.19.23"></a><var>19.23</var>    (3) the city net tax capacity for the city used in calculating aids available in 2000 <br/>
<a id="pl.19.24"></a><var>19.24</var>was equal to or less than $200 per capita;<br/>
<a id="pl.19.25"></a><var>19.25</var>    (4) the city aid base of the city used in calculating aid under section 
         <statute_ref>477A.013 <br/>
</statute_ref><a id="pl.19.26"></a><var>19.26</var>is less than $65 per capita; and<br/>
<a id="pl.19.27"></a><var>19.27</var>    (5) the city's formula aid for aids payable in 2000 was greater than zero.<br/>
<a id="pl.19.28"></a><var>19.28</var>    (i) The city aid base for a city is increased by $7,200 in 2001 and thereafter, and <br/>
<a id="pl.19.29"></a><var>19.29</var>the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.19.30"></a><var>19.30</var>paragraph (c), is also increased by $7,200 in calendar year 2001 only, provided that:<br/>
<a id="pl.19.31"></a><var>19.31</var>    (1) the city had a population in 1998 that is greater than 200 but less than 500;<br/>
<a id="pl.19.32"></a><var>19.32</var>    (2) the city's commercial industrial percentage used in calculating aids payable in <br/>
<a id="pl.19.33"></a><var>19.33</var>2000 was less than ten percent;<br/>
<a id="pl.19.34"></a><var>19.34</var>    (3) more than 25 percent of the city's population was 60 years old or older according <br/>
<a id="pl.19.35"></a><var>19.35</var>to the 1990 census;<br/>
<a id="pl.20.1"></a><var>20.1</var>    (4) the city aid base of the city used in calculating aid under section 
         <statute_ref>477A.013 <br/>
</statute_ref><a id="pl.20.2"></a><var>20.2</var>is less than $15 per capita; and<br/>
<a id="pl.20.3"></a><var>20.3</var>    (5) the city's formula aid for aids payable in 2000 was greater than zero.<br/>
<a id="pl.20.4"></a><var>20.4</var>    (j) The city aid base for a city is increased by $45,000 in 2001 and thereafter and <br/>
<a id="pl.20.5"></a><var>20.5</var>by an additional $50,000 in calendar years 2002 to 2011, and the maximum amount of <br/>
<a id="pl.20.6"></a><var>20.6</var>total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, paragraph (c), is also <br/>
<a id="pl.20.7"></a><var>20.7</var>increased by $45,000 in calendar year 2001 only, and by $50,000 in calendar year 2002 <br/>
<a id="pl.20.8"></a><var>20.8</var>only, provided that:<br/>
<a id="pl.20.9"></a><var>20.9</var>    (1) the net tax capacity of the city used in calculating its 2000 aid under section <br/>
<statute_ref><a id="pl.20.10"></a><var>20.10</var>477A.013
         </statute_ref> is less than $810 per capita;<br/>
<a id="pl.20.11"></a><var>20.11</var>    (2) the population of the city declined more than two percent between 1988 and 1998;<br/>
<a id="pl.20.12"></a><var>20.12</var>    (3) the net levy of the city used in calculating 2000 aid under section 
         <statute_ref>477A.013</statute_ref> is <br/>
<a id="pl.20.13"></a><var>20.13</var>greater than $240 per capita; and<br/>
<a id="pl.20.14"></a><var>20.14</var>    (4) the city received less than $36 per capita in aid under section 
         <statute_ref>477A.013, <br/>
<a id="pl.20.15"></a><var>20.15</var>subdivision 9
         </statute_ref>, for aids payable in 2000.<br/>
<a id="pl.20.16"></a><var>20.16</var>    (k) The city aid base for a city with a population of 10,000 or more which is located <br/>
<a id="pl.20.17"></a><var>20.17</var>outside of the seven-county metropolitan area is increased in 2002 and thereafter, and the <br/>
<a id="pl.20.18"></a><var>20.18</var>maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.20.19"></a><var>20.19</var>paragraph (b) or (c), is also increased in calendar year 2002 only, by an amount equal to <br/>
<a id="pl.20.20"></a><var>20.20</var>the lesser of:<br/>
<a id="pl.20.21"></a><var>20.21</var>    (1)(i) the total population of the city, as determined by the United States Bureau of <br/>
<a id="pl.20.22"></a><var>20.22</var>the Census, in the 2000 census, (ii) minus 5,000, (iii) times 60; or<br/>
<a id="pl.20.23"></a><var>20.23</var>    (2) $2,500,000.<br/>
<a id="pl.20.24"></a><var>20.24</var>    (l) The city aid base is increased by $50,000 in 2002 and thereafter, and the <br/>
<a id="pl.20.25"></a><var>20.25</var>maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, <br/>
<a id="pl.20.26"></a><var>20.26</var>paragraph (c), is also increased by $50,000 in calendar year 2002 only, provided that:<br/>
<a id="pl.20.27"></a><var>20.27</var>    (1) the city is located in the seven-county metropolitan area;<br/>
<a id="pl.20.28"></a><var>20.28</var>    (2) its population in 2000 is between 10,000 and 20,000; and<br/>
<a id="pl.20.29"></a><var>20.29</var>    (3) its commercial industrial percentage, as calculated for city aid payable in 2001, <br/>
<a id="pl.20.30"></a><var>20.30</var>was greater than 25 percent.<br/>
<a id="pl.20.31"></a><var>20.31</var>    (m) The city aid base for a city is increased by $150,000 in calendar years 2002 to <br/>
<a id="pl.20.32"></a><var>20.32</var>2011 and by an additional $75,000 in calendar years 2009 to 2014 and the maximum <br/>
<a id="pl.20.33"></a><var>20.33</var>amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, paragraph (c), is <br/>
<a id="pl.20.34"></a><var>20.34</var>also increased by $150,000 in calendar year 2002 only and by $75,000 in calendar year <br/>
<a id="pl.20.35"></a><var>20.35</var>2009 only, provided that:<br/>
<a id="pl.20.36"></a><var>20.36</var>    (1) the city had a population of at least 3,000 but no more than 4,000 in 1999;<br/>
<a id="pl.21.1"></a><var>21.1</var>    (2) its home county is located within the seven-county metropolitan area;<br/>
<a id="pl.21.2"></a><var>21.2</var>    (3) its pre-1940 housing percentage is less than 15 percent; and<br/>
<a id="pl.21.3"></a><var>21.3</var>    (4) its city net tax capacity per capita for taxes payable in 2000 is less than $900 <br/>
<a id="pl.21.4"></a><var>21.4</var>per capita.<br/>
<a id="pl.21.5"></a><var>21.5</var>    (n) The city aid base for a city is increased by $200,000 beginning in calendar <br/>
<a id="pl.21.6"></a><var>21.6</var>year 2003 and the maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, <br/>
<a id="pl.21.7"></a><var>21.7</var>subdivision 9
         </statute_ref>, paragraph (c), is also increased by $200,000 in calendar year 2003 only, <br/>
<a id="pl.21.8"></a><var>21.8</var>provided that the city qualified for an increase in homestead and agricultural credit aid <br/>
<a id="pl.21.9"></a><var>21.9</var>under Laws 1995, chapter 264, article 8, section 18.<br/>
<a id="pl.21.10"></a><var>21.10</var>    (o) The city aid base for a city is increased by $200,000 in 2004 only and the <br/>
<a id="pl.21.11"></a><var>21.11</var>maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is <br/>
<a id="pl.21.12"></a><var>21.12</var>also increased by $200,000 in calendar year 2004 only, if the city is the site of a nuclear <br/>
<a id="pl.21.13"></a><var>21.13</var>dry cask storage facility.<br/>
<a id="pl.21.14"></a><var>21.14</var>    (p) The city aid base for a city is increased by $10,000 in 2004 and thereafter and the <br/>
<a id="pl.21.15"></a><var>21.15</var>maximum total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is also increased <br/>
<a id="pl.21.16"></a><var>21.16</var>by $10,000 in calendar year 2004 only, if the city was included in a federal major disaster <br/>
<a id="pl.21.17"></a><var>21.17</var>designation issued on April 1, 1998, and its pre-1940 housing stock was decreased by <br/>
<a id="pl.21.18"></a><var>21.18</var>more than 40 percent between 1990 and 2000.<br/>
<a id="pl.21.19"></a><var>21.19</var>    (q) The city aid base for a city is increased by $30,000 in 2009 and thereafter and the <br/>
<a id="pl.21.20"></a><var>21.20</var>maximum total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is also increased <br/>
<a id="pl.21.21"></a><var>21.21</var>by $25,000 in calendar year 2006 only if the city had a population in 2003 of at least 1,000 <br/>
<a id="pl.21.22"></a><var>21.22</var>and has a state park for which the city provides rescue services and which comprised at <br/>
<a id="pl.21.23"></a><var>21.23</var>least 14 percent of the total geographic area included within the city boundaries in 2000.<br/>
<a id="pl.21.24"></a><var>21.24</var>    (r) The city aid base for a city is increased by $80,000 in 2009 and thereafter and <br/>
<a id="pl.21.25"></a><var>21.25</var>the minimum and maximum amount of total aid it may receive under section 
         <statute_ref>477A.013</statute_ref>, <br/>
<a id="pl.21.26"></a><var>21.26</var>subdivision 9, is also increased by $80,000 in calendar year 2009 only, if:<br/>
<a id="pl.21.27"></a><var>21.27</var>    (1) as of May 1, 2006, at least 25 percent of the tax capacity of the city is proposed <br/>
<a id="pl.21.28"></a><var>21.28</var>to be placed in trust status as tax-exempt Indian land;<br/>
<a id="pl.21.29"></a><var>21.29</var>    (2) the placement of the land is being challenged administratively or in court; and<br/>
<a id="pl.21.30"></a><var>21.30</var>    (3) due to the challenge, the land proposed to be placed in trust is still on the tax <br/>
<a id="pl.21.31"></a><var>21.31</var>rolls as of May 1, 2006.<br/>
<a id="pl.21.32"></a><var>21.32</var>    (s) The city aid base for a city is increased by $100,000 in 2007 and thereafter and <br/>
<a id="pl.21.33"></a><var>21.33</var>the minimum and maximum total amount of aid it may receive under this section is also <br/>
<a id="pl.21.34"></a><var>21.34</var>increased in calendar year 2007 only, provided that:<br/>
<a id="pl.21.35"></a><var>21.35</var>    (1) the city has a 2004 estimated population greater than 200 but less than 2,000;<br/>
<a id="pl.21.36"></a><var>21.36</var>    (2) its city net tax capacity for aids payable in 2006 was less than $300 per capita;<br/>
<a id="pl.22.1"></a><var>22.1</var>    (3) the ratio of its pay 2005 tax levy compared to its city net tax capacity for aids <br/>
<a id="pl.22.2"></a><var>22.2</var>payable in 2006 was greater than 110 percent; and<br/>
<a id="pl.22.3"></a><var>22.3</var>    (4) it is located in a county where at least 15,000 acres of land are classified as <br/>
<a id="pl.22.4"></a><var>22.4</var>tax-exempt Indian reservations according to the 2004 abstract of tax-exempt property.<br/>
<a id="pl.22.5"></a><var>22.5</var>    (t) The city aid base for a city is increased by $30,000 in 2009 only, and the <br/>
<a id="pl.22.6"></a><var>22.6</var>maximum total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is also increased <br/>
<a id="pl.22.7"></a><var>22.7</var>by $30,000 in calendar year 2009, only if the city had a population in 2005 of less than <br/>
<a id="pl.22.8"></a><var>22.8</var>3,000 and the city's boundaries as of 2007 were formed by the consolidation of two cities <br/>
<a id="pl.22.9"></a><var>22.9</var>and one township in 2002.<br/>
<a id="pl.22.10"></a><var>22.10</var>    (u) The city aid base for a city is increased by $100,000 in 2009 and thereafter, and <br/>
<a id="pl.22.11"></a><var>22.11</var>the maximum total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is also <br/>
<a id="pl.22.12"></a><var>22.12</var>increased by $100,000 in calendar year 2009 only, if the city had a city net tax capacity for <br/>
<a id="pl.22.13"></a><var>22.13</var>aids payable in 2007 of less than $150 per capita and the city experienced flooding on <br/>
<a id="pl.22.14"></a><var>22.14</var>March 14, 2007, that resulted in evacuation of at least 40 homes.<br/>
<a id="pl.22.15"></a><var>22.15</var>    (v) The city aid base for a city is increased by $100,000 in 2009 to 2013, and the <br/>
<a id="pl.22.16"></a><var>22.16</var>maximum total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is also increased <br/>
<a id="pl.22.17"></a><var>22.17</var>by $100,000 in calendar year 2009 only, if the city:<br/>
<a id="pl.22.18"></a><var>22.18</var>    (1) is located outside of the Minneapolis-St. Paul standard metropolitan statistical <br/>
<a id="pl.22.19"></a><var>22.19</var>area;<br/>
<a id="pl.22.20"></a><var>22.20</var>    (2) has a 2005 population greater than 7,000 but less than 8,000; and<br/>
<a id="pl.22.21"></a><var>22.21</var>    (3) has a 2005 net tax capacity per capita of less than $500.<br/>
<a id="pl.22.22"></a><var>22.22</var>    (w) The city aid base is increased by $25,000 in calendar years 2009 to 2013 and the <br/>
<a id="pl.22.23"></a><var>22.23</var>maximum amount of total aid it may receive under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is <br/>
<a id="pl.22.24"></a><var>22.24</var>increased by $25,000 in calendar year 2009 only, provided that:<br/>
<a id="pl.22.25"></a><var>22.25</var>    (1) the city is located in the seven-county metropolitan area;<br/>
<a id="pl.22.26"></a><var>22.26</var>    (2) its population in 2006 is less than 200; and<br/>
<a id="pl.22.27"></a><var>22.27</var>    (3) the percentage of its housing stock built before 1940, according to the 2000 <br/>
<a id="pl.22.28"></a><var>22.28</var>United States Census, is greater than 40 percent.<br/>
<a id="pl.22.29"></a><var>22.29</var>    (x) The city aid base is increased by $90,000 in calendar year 2009 only and the <br/>
<a id="pl.22.30"></a><var>22.30</var>minimum and maximum total amount of aid it may receive under section 
         <statute_ref>477A.013</statute_ref>, <br/>
<a id="pl.22.31"></a><var>22.31</var>subdivision 9, is also increased by $90,000 in calendar year 2009 only, provided that the <br/>
<a id="pl.22.32"></a><var>22.32</var>city is located in the seven-county metropolitan area, has a 2006 population between 5,000 <br/>
<a id="pl.22.33"></a><var>22.33</var>and 7,000 and has a 1997 population of over 7,000.<br/>
<a id="pl.22.34"></a><var>22.34</var>    (y) In calendar year 2010 only, the city aid base for a city is increased by $225,000 if <br/>
<a id="pl.22.35"></a><var>22.35</var>it was eligible for a $450,000 payment in calendar year 2008 under Minnesota Statutes <br/>
<a id="pl.22.36"></a><var>22.36</var>2006, section 
         <statute_ref>477A.011, subdivision 36</statute_ref>, paragraph (e), and the second half of the payment <br/>
<a id="pl.23.1"></a><var>23.1</var>under that paragraph in December 2008 was canceled due to the governor's unallotment. <br/>
<a id="pl.23.2"></a><var>23.2</var>The payment under this paragraph is not subject to any aid reductions under section <br/>
<statute_ref><a id="pl.23.3"></a><var>23.3</var>477A.0134
         </statute_ref> or any future unallotment of the city aid under section 
         <statute_ref>16A.152</statute_ref>.<br/>
<a id="pl.23.4"></a><var>23.4</var>(z) The city aid base and the maximum total aid the city may receive under section <br/>
<a id="pl.23.5"></a><var>23.5</var><statute_ref>477A.013, subdivision 9</statute_ref>, is increased by $25,000 in calendar year 2010 only if:<br/>
<a id="pl.23.6"></a><var>23.6</var>(1) the city is a first class city in the seven-county metropolitan area with a <br/>
<a id="pl.23.7"></a><var>23.7</var>population below 300,000; and<br/>
<a id="pl.23.8"></a><var>23.8</var>(2) the city has made an equivalent grant to its local growers' association to <br/>
<a id="pl.23.9"></a><var>23.9</var>reimburse up to $1,000 each for membership fees and retail leases for members of the <br/>
<a id="pl.23.10"></a><var>23.10</var>association who farm in and around Dakota County and who incurred crop damage as a <br/>
<a id="pl.23.11"></a><var>23.11</var>result of the hail storm in that area on July 10, 2008.<br/>
<a id="pl.23.12"></a><var>23.12</var>The payment under this paragraph is not subject to any aid reductions under section <br/>
<a id="pl.23.13"></a><var>23.13</var><statute_ref>477A.0134</statute_ref> or any future unallotment of the city aid under section 
<statute_ref>16A.152</statute_ref>.<br/>
<a id="pl.23.14"></a><var>23.14</var>(aa) The city aid base for a city is increased by $106,964 in 2011 only and the <br/>
<a id="pl.23.15"></a><var>23.15</var>minimum and maximum amount of total aid it may receive under section 
<statute_ref>477A.013</statute_ref>, <br/>
<a id="pl.23.16"></a><var>23.16</var>subdivision 9, is also increased by $106,964 in calendar year 2011 only, if the city had a <br/>
<a id="pl.23.17"></a><var>23.17</var>population as defined in Minnesota Statutes, section 
<statute_ref>477A.011, subdivision 3</statute_ref>, that was in <br/>
<a id="pl.23.18"></a><var>23.18</var>excess of 1,000 in 2007 and that was less than 1,000 in 2008.<br/>
<a id="pl.23.19"></a><var>23.19</var>(z) In calendar year 2013 only, the total aid the city may receive under section <br/>
<a id="pl.23.20"></a><var>23.20</var><statute_ref>477A.013</statute_ref> is increased by $12,000 if:<br/>
<a id="pl.23.21"></a><var>23.21</var>(1) the city's 2010 population is less than 100 and its population growth between <br/>
<a id="pl.23.22"></a><var>23.22</var>2000 and 2010 was more than 55 percent; and<br/>
<a id="pl.23.23"></a><var>23.23</var>(2) its commercial industrial percentage as defined in subdivision 32, based on <br/>
<a id="pl.23.24"></a><var>23.24</var>assessments for calendar year 2010, payable in 2011, is greater than 15 percent.<br/>
<a id="pl.23.25"></a><var>23.25</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.23.26"></a><var>23.26</var>2013 and thereafter.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.23.27"></a><var>23.27</var>    Sec. 11. Minnesota Statutes 2011 Supplement, section 477A.013, subdivision 9, <br/>
<a id="pl.23.28"></a><var>23.28</var>is amended to read:<br/>
<a id="pl.23.29"></a><var>23.29</var>    Subd. 9. <b>City aid distribution.</b> (a) In calendar year 2009 2013 and thereafter, each <br/>
<a id="pl.23.30"></a><var>23.30</var>city shall receive an aid distribution equal to the sum of (1) the city formula aid under <br/>
<a id="pl.23.31"></a><var>23.31</var>subdivision 8, and (2) its city aid base.<br/>
<a id="pl.23.32"></a><var>23.32</var>    (b) For aids payable in 2013  and 2014 only, the total aid in the previous year for any <br/>
<a id="pl.23.33"></a><var>23.33</var>city shall mean the amount of aid it was certified to receive for aids payable in 2012 under <br/>
<a id="pl.23.34"></a><var>23.34</var>this section. For aids payable in 2014 2015 and thereafter, the total aid in the previous <br/>
<a id="pl.24.1"></a><var>24.1</var>year for any city means the amount of aid it was certified to receive under this section in <br/>
<a id="pl.24.2"></a><var>24.2</var>the previous payable year.<br/>
<a id="pl.24.3"></a><var>24.3</var>    (c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed <br/>
<a id="pl.24.4"></a><var>24.4</var>the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution <br/>
<a id="pl.24.5"></a><var>24.5</var>plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total <br/>
<a id="pl.24.6"></a><var>24.6</var>aid for any city with a population of 2,500 or more may not be less than its total aid under <br/>
<a id="pl.24.7"></a><var>24.7</var>this section in the previous year minus the lesser of $10 multiplied by its population, or ten <br/>
<a id="pl.24.8"></a><var>24.8</var>percent of its net levy in the year prior to the aid distribution.<br/>
<a id="pl.24.9"></a><var>24.9</var>    (d) For aids payable in 2010 and thereafter, the total aid for a city with a population <br/>
<a id="pl.24.10"></a><var>24.10</var>less than 2,500 must not be less than the amount it was certified to receive in the <br/>
<a id="pl.24.11"></a><var>24.11</var>previous year minus the lesser of $10 multiplied by its population, or five percent of its <br/>
<a id="pl.24.12"></a><var>24.12</var>2003 certified aid amount. For aids payable in 2009 only, the total aid for a city with a <br/>
<a id="pl.24.13"></a><var>24.13</var>population less than 2,500 must not be less than what it received under this section in the <br/>
<a id="pl.24.14"></a><var>24.14</var>previous year unless its total aid in calendar year 2008 was aid under section 
         <statute_ref>477A.011</statute_ref>, <br/>
<a id="pl.24.15"></a><var>24.15</var>subdivision 36, paragraph (s), in which case its minimum aid is zero.<br/>
<a id="pl.24.16"></a><var>24.16</var>    (e) A city's aid loss under this section may not exceed $300,000 in any year in <br/>
<a id="pl.24.17"></a><var>24.17</var>which the total city aid appropriation under section 
         <statute_ref>477A.03, subdivision 2a</statute_ref>, is equal or <br/>
<a id="pl.24.18"></a><var>24.18</var>greater than the appropriation under that subdivision in the previous year, unless the <br/>
<a id="pl.24.19"></a><var>24.19</var>city has an adjustment in its city net tax capacity under the process described in section <br/>
<statute_ref><a id="pl.24.20"></a><var>24.20</var>469.174, subdivision 28
         </statute_ref>.<br/>
<a id="pl.24.21"></a><var>24.21</var>    (f) If a city's net tax capacity used in calculating aid under this section has decreased <br/>
<a id="pl.24.22"></a><var>24.22</var>in any year by more than 25 percent from its net tax capacity in the previous year due to <br/>
<a id="pl.24.23"></a><var>24.23</var>property becoming tax-exempt Indian land, the city's maximum allowed aid increase <br/>
<a id="pl.24.24"></a><var>24.24</var>under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the <br/>
<a id="pl.24.25"></a><var>24.25</var>year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease <br/>
<a id="pl.24.26"></a><var>24.26</var>resulting from the property becoming tax exempt.<br/>
<a id="pl.24.27"></a><var>24.27</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.24.28"></a><var>24.28</var>2013 and thereafter.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.24.29"></a><var>24.29</var>    Sec. 12. Minnesota Statutes 2010, section 477A.013, is amended by adding a <br/>
<a id="pl.24.30"></a><var>24.30</var>subdivision to read:<br/>
<a id="pl.24.31"></a><var>24.31</var>    Subd. 12. <b>Aid payments in 2013.</b> (a) Notwithstanding aids calculated for 2013 <br/>
<a id="pl.24.32"></a><var>24.32</var>under subdivision 9, for 2013, each city with a population of 5,000 or more shall receive <br/>
<a id="pl.24.33"></a><var>24.33</var>an aid distribution under this section equal to its aid distribution under this section in 2012.<br/>
<a id="pl.24.34"></a><var>24.34</var>(b) Notwithstanding aids calculated for 2013 under subdivision 9, each city with <br/>
<a id="pl.24.35"></a><var>24.35</var>a population under 5,000 shall receive an aid distribution under this section equal to <br/>
<a id="pl.25.1"></a><var>25.1</var>any additional city aid base authorized in calendar year 2013 under section 477A.011, <br/>
<a id="pl.25.2"></a><var>25.2</var>subdivision 36, paragraph (z), plus the greater of (1) its aid distribution under this section <br/>
<a id="pl.25.3"></a><var>25.3</var>in 2012 or (2) its amount that it is calculated to receive under subdivision 9.<br/>
<a id="pl.25.4"></a><var>25.4</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.25.5"></a><var>25.5</var>2013.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.25.6"></a><var>25.6</var>    Sec. 13. Minnesota Statutes 2010, section 477A.017, subdivision 3, is amended to read:<br/>
<a id="pl.25.7"></a><var>25.7</var>    Subd. 3. <b>Conformity.</b> Other law to the contrary notwithstanding, in order to receive <br/>
<a id="pl.25.8"></a><var>25.8</var>distributions under sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.03</statute_ref>, counties and cities must conform to <br/>
<a id="pl.25.9"></a><var>25.9</var>the standards set in subdivision 2 in making all financial reports required to be made to <br/>
<a id="pl.25.10"></a><var>25.10</var>the state auditor after June 30, 1984 by the deadline set by the state auditor. Counties and <br/>
<a id="pl.25.11"></a><var>25.11</var>cities that fail to submit the required information to the state auditor within 45 days of <br/>
<a id="pl.25.12"></a><var>25.12</var>the reporting deadline shall forfeit an amount equal to ten percent of the distributions <br/>
<a id="pl.25.13"></a><var>25.13</var>under sections 477A.011 to 477A.03. Counties and cities that fail to submit the required <br/>
<a id="pl.25.14"></a><var>25.14</var>information within 60 days of the reporting deadline shall forfeit an amount equal to 30 <br/>
<a id="pl.25.15"></a><var>25.15</var>percent of the distributions. Counties and cities that fail to submit the required information <br/>
<a id="pl.25.16"></a><var>25.16</var>within 90 days of the reporting deadline shall forfeit an amount equal to 50 percent of the <br/>
<a id="pl.25.17"></a><var>25.17</var>distributions.<br/>
<a id="pl.25.18"></a><var>25.18</var><b>EFFECTIVE DATE.</b>This section is effective for financial reports for calendar <br/>
<a id="pl.25.19"></a><var>25.19</var>year 2012 and thereafter.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.25.20"></a><var>25.20</var>    Sec. 14. <b>2011 CITY AID PENALTIES.</b><br/>
<a id="pl.25.21"></a><var>25.21</var>(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, any city <br/>
<a id="pl.25.22"></a><var>25.22</var>that did not meet the requirements for filing calendar year 2010 financial reports with <br/>
<a id="pl.25.23"></a><var>25.23</var>the state auditor imposed under Minnesota Statutes, section 477A.017, subdivision 2, <br/>
<a id="pl.25.24"></a><var>25.24</var>shall receive its 2011 aid payment as calculated pursuant to Minnesota Statutes, section <br/>
<a id="pl.25.25"></a><var>25.25</var>477A.013, subdivision 11, provided that the forms are submitted to the state auditor by <br/>
<a id="pl.25.26"></a><var>25.26</var>May 31, 2012. The commissioner shall make payment to each qualifying city no later <br/>
<a id="pl.25.27"></a><var>25.27</var>than June 30, 2012.<br/>
<a id="pl.25.28"></a><var>25.28</var>(b) Up to $794,579 of the fiscal year 2012 appropriation for local government aid <br/>
<a id="pl.25.29"></a><var>25.29</var>in Minnesota Statutes, section 477A.013, subdivision 11, is available for the payment <br/>
<a id="pl.25.30"></a><var>25.30</var>under this section.<br/>
<a id="pl.25.31"></a><var>25.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.26.1"></a><var>26.1</var>    Sec. 15. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243, <br/>
<a id="pl.26.2"></a><var>26.2</var>article 6, section 9, Laws 2000, chapter 490, article 6, section 15, and Laws 2008, chapter <br/>
<a id="pl.26.3"></a><var>26.3</var>154, article 2, section 30, is amended to read:<br/>
<a id="pl.26.4"></a><var>26.4</var>    Sec. 3. <b>TAX; PAYMENT OF EXPENSES.</b><br/>
<a id="pl.26.5"></a><var>26.5</var>    (a) The tax levied by the hospital district under Minnesota Statutes, section 
         <statute_ref>447.34</statute_ref>, <br/>
<a id="pl.26.6"></a><var>26.6</var>must not be levied at a rate that exceeds the amount authorized to be levied under that <br/>
<a id="pl.26.7"></a><var>26.7</var>section. The proceeds of the tax may be used for all purposes of the hospital district, <br/>
<a id="pl.26.8"></a><var>26.8</var>except as provided in paragraph (b).<br/>
<a id="pl.26.9"></a><var>26.9</var>    (b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used <br/>
<a id="pl.26.10"></a><var>26.10</var>solely by the Cook ambulance service and the Orr ambulance service for the purpose of <br/>
<a id="pl.26.11"></a><var>26.11</var>capital expenditures as it relates to:<br/>
<a id="pl.26.12"></a><var>26.12</var>    (1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance <br/>
<a id="pl.26.13"></a><var>26.13</var>service and not;<br/>
<a id="pl.26.14"></a><var>26.14</var>    (2) attached and portable equipment for use in and for the ambulances; and<br/>
<a id="pl.26.15"></a><var>26.15</var>    (3) parts and replacement parts for maintenance and repair of the ambulances.<br/>
<a id="pl.26.16"></a><var>26.16</var>The money may not be used for administrative, operation,  or salary expenses.<br/>
<a id="pl.26.17"></a><var>26.17</var>    (c) The part of the levy referred to in paragraph (b) must be administered by the Cook <br/>
<a id="pl.26.18"></a><var>26.18</var>Hospital and passed on directly to the Cook area ambulance service board and the city of <br/>
<a id="pl.26.19"></a><var>26.19</var>Orr to be held in trust until funding for a new ambulance is needed by either the Cook <br/>
<a id="pl.26.20"></a><var>26.20</var>ambulance service or the Orr ambulance service used for the purposes in paragraph (b).<br/>
<br/>
<a id="bill.1.16.0"></a><a id="pl.26.21"></a><var>26.21</var>    Sec. 16. Laws 1999, chapter 243, article 6, section 11, is amended to read:<br/>
<a id="pl.26.22"></a><var>26.22</var>    Sec. 11. <b>CEMETERY LEVY FOR SAWYER BY CARLTON COUNTY.</b><br/>
<a id="pl.26.23"></a><var>26.23</var>    Subdivision 1. <b>Levy authorized.</b> Notwithstanding other law to the contrary, the <br/>
<a id="pl.26.24"></a><var>26.24</var>Carlton county board of commissioners may annually levy in and for the unorganized <br/>
<a id="pl.26.25"></a><var>26.25</var>township of Sawyer an amount up to $1,000 annually for cemetery purposes, beginning <br/>
<a id="pl.26.26"></a><var>26.26</var>with taxes payable in 2000 and ending with taxes payable in 2009.<br/>
<a id="pl.26.27"></a><var>26.27</var>    Subd. 2. <b>Effective date.</b> This section is effective June 1, 1999, without local <br/>
<a id="pl.26.28"></a><var>26.28</var>approval.<br/>
<a id="pl.26.29"></a><var>26.29</var><b>EFFECTIVE DATE; LOCAL APPROVAL.</b>This section applies to taxes <br/>
<a id="pl.26.30"></a><var>26.30</var>payable in 2013 and thereafter, and is effective the day after the Carlton county board <br/>
<a id="pl.26.31"></a><var>26.31</var>of commissioners and its chief clerical officer timely complete their compliance with <br/>
<a id="pl.26.32"></a><var>26.32</var>Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.1.17.0"></a><a id="pl.26.33"></a><var>26.33</var>    Sec. 17. Laws 2010, chapter 389, article 1, section 12, the effective date, is amended to <br/>
<a id="pl.26.34"></a><var>26.34</var>read:<br/>
<a id="pl.27.1"></a><var>27.1</var><b>EFFECTIVE DATE.</b>This section is effective for assessment years year 2010 and <br/>
<a id="pl.27.2"></a><var>27.2</var>2011, for taxes payable in 2011 and 2012 thereafter.<br/>
<a id="pl.27.3"></a><var>27.3</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2012 and <br/>
<a id="pl.27.4"></a><var>27.4</var>thereafter.<br/>
<br/>
<a id="bill.1.18.0"></a><a id="pl.27.5"></a><var>27.5</var>    Sec. 18. <b>HOLDING OF PROPERTY FOR ECONOMIC DEVELOPMENT; </b><br/>
<a id="pl.27.6"></a><var>27.6</var><b>TEMPORARY EXTENSION.</b><br/>
<a id="pl.27.7"></a><var>27.7</var>    (a) For purposes of Minnesota Statutes, section 272.02, subdivision 39, a political <br/>
<a id="pl.27.8"></a><var>27.8</var>subdivision's holding for resale for economic development of a property that is located in <br/>
<a id="pl.27.9"></a><var>27.9</var>a city in the metropolitan area, or in a city with a population of more than 5,000 outside <br/>
<a id="pl.27.10"></a><var>27.10</var>of the metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision <br/>
<a id="pl.27.11"></a><var>27.11</var>2, for up to ten years, is a public purpose.<br/>
<a id="pl.27.12"></a><var>27.12</var>    (b) The authority under this section expires on December 31, 2015.<br/>
<a id="pl.27.13"></a><var>27.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.19.0"></a><a id="pl.27.14"></a><var>27.14</var>    Sec. 19. <b>ADDITIONAL AID PAYMENT IN 2012 FOR CERTAIN CITIES.</b><br/>
<a id="pl.27.15"></a><var>27.15</var>For calendar year 2012 only, a city shall receive a onetime payment of $12,000 <br/>
<a id="pl.27.16"></a><var>27.16</var>if: (1) the city's 2010 population is less than 100 and its population growth between <br/>
<a id="pl.27.17"></a><var>27.17</var>2000 and 2010 was more than 55 percent; and (2) its commercial industrial percentage as <br/>
<a id="pl.27.18"></a><var>27.18</var>defined in Minnesota Statutes, section 477A.011, subdivision 32, based on assessments <br/>
<a id="pl.27.19"></a><var>27.19</var>for calendar year 2010, payable 2011, is greater than 15 percent. The aid paid under this <br/>
<a id="pl.27.20"></a><var>27.20</var>section shall be paid on the same schedule as aid paid under Minnesota Statutes, sections <br/>
<a id="pl.27.21"></a><var>27.21</var>477A.011 to 477A.03. The amount necessary to make the payment under this section shall <br/>
<a id="pl.27.22"></a><var>27.22</var>be appropriated from the general fund in fiscal year 2013.<br/>
<a id="pl.27.23"></a><var>27.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.20.0"></a><a id="pl.27.24"></a><var>27.24</var>    Sec. 20. <b>SUPPLEMENTAL TARGETING REFUND FOR TAXES PAYABLE IN </b><br/>
<a id="pl.27.25"></a><var>27.25</var><b>2012 ONLY.</b><br/>
<a id="pl.27.26"></a><var>27.26</var>    Subdivision 1. <b>Determination of supplemental refund.</b> (a) For property tax refund <br/>
<a id="pl.27.27"></a><var>27.27</var>claims under Minnesota Statutes, section 290A.04, subdivision 2h, based upon property <br/>
<a id="pl.27.28"></a><var>27.28</var>taxes payable in 2012, the state must pay a supplemental refund such that the combined <br/>
<a id="pl.27.29"></a><var>27.29</var>amount of the regular refund under Minnesota Statutes, section 290A.04, subdivision 2h, <br/>
<a id="pl.27.30"></a><var>27.30</var>and the supplemental refund is equal to 90 percent of the increase over the greater of (1) 12 <br/>
<a id="pl.28.1"></a><var>28.1</var>percent of the payable 2011 property taxes, or (2) $100. The maximum combined refund <br/>
<a id="pl.28.2"></a><var>28.2</var>under Minnesota Statutes, section 290A.04, subdivision 2h, and this section is $1,000.<br/>
<a id="pl.28.3"></a><var>28.3</var>(b) The supplemental refund amount must be determined by the commissioner of <br/>
<a id="pl.28.4"></a><var>28.4</var>revenue based upon the information submitted with the claim for the regular refund and <br/>
<a id="pl.28.5"></a><var>28.5</var>must be combined with the regular refund for payment.<br/>
<a id="pl.28.6"></a><var>28.6</var>(c) Any supplemental refund paid under this section must be subtracted from <br/>
<a id="pl.28.7"></a><var>28.7</var>"property taxes payable" for the purposes of determining any refund amount under <br/>
<a id="pl.28.8"></a><var>28.8</var>Minnesota Statutes, section 290A.04, subdivision 2, based upon property taxes payable <br/>
<a id="pl.28.9"></a><var>28.9</var>in 2012.<br/>
<a id="pl.28.10"></a><var>28.10</var>(d) Any supplemental refund paid under this section must be subtracted from <br/>
<a id="pl.28.11"></a><var>28.11</var>"property taxes payable" for taxes payable in 2012 for the purposes of determining any <br/>
<a id="pl.28.12"></a><var>28.12</var>refund amount under Minnesota Statutes, section 290A.04, subdivision 2h, based upon <br/>
<a id="pl.28.13"></a><var>28.13</var>property taxes payable in 2013.<br/>
<a id="pl.28.14"></a><var>28.14</var>    Subd. 2. <b>Appropriation.</b> The amount necessary to make the payments required <br/>
<a id="pl.28.15"></a><var>28.15</var>under this section is appropriated to the commissioner of revenue from the general fund <br/>
<a id="pl.28.16"></a><var>28.16</var>for fiscal years 2013 and 2014.<br/>
<a id="pl.28.17"></a><var>28.17</var><b>EFFECTIVE DATE.</b>This section is effective for refund claims based on taxes <br/>
<a id="pl.28.18"></a><var>28.18</var>payable in 2012 only.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.28.21"></a><var>28.21</var>    Section 1. Minnesota Statutes 2011 Supplement, section 116J.8737, subdivision 1, <br/>
<a id="pl.28.22"></a><var>28.22</var>is amended to read:<br/>
<a id="pl.28.23"></a><var>28.23</var>    Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br/>
<a id="pl.28.24"></a><var>28.24</var>have the meanings given.<br/>
<a id="pl.28.25"></a><var>28.25</var>(b) "Qualified small business" means a business that has been certified by the <br/>
<a id="pl.28.26"></a><var>28.26</var>commissioner under subdivision 2.<br/>
<a id="pl.28.27"></a><var>28.27</var>(c) "Qualified investor" means an investor who has been certified by the <br/>
<a id="pl.28.28"></a><var>28.28</var>commissioner under subdivision 3.<br/>
<a id="pl.28.29"></a><var>28.29</var>(d) "Qualified fund" means a pooled angel investment network fund that has been <br/>
<a id="pl.28.30"></a><var>28.30</var>certified by the commissioner under subdivision 4.<br/>
<a id="pl.28.31"></a><var>28.31</var>(e) "Qualified investment" means a cash investment in a qualified small business <br/>
<a id="pl.28.32"></a><var>28.32</var>of a minimum of:<br/>
<a id="pl.28.33"></a><var>28.33</var>(1) $10,000 in a calendar year by a qualified investor; or<br/>
<a id="pl.28.34"></a><var>28.34</var>(2) $30,000 in a calendar year by a qualified fund.<br/>
<a id="pl.29.1"></a><var>29.1</var>A qualified investment must be made in exchange for common stock, a partnership <br/>
<a id="pl.29.2"></a><var>29.2</var>or membership interest, preferred stock, debt with mandatory conversion to equity, or an <br/>
<a id="pl.29.3"></a><var>29.3</var>equivalent ownership interest as determined by the commissioner.<br/>
<a id="pl.29.4"></a><var>29.4</var>(f) "Family" means a family member within the meaning of the Internal Revenue <br/>
<a id="pl.29.5"></a><var>29.5</var>Code, section 267(c)(4).<br/>
<a id="pl.29.6"></a><var>29.6</var>(g) "Pass-through entity" means a corporation that for the applicable taxable year is <br/>
<a id="pl.29.7"></a><var>29.7</var>treated as an S corporation or a general partnership, limited partnership, limited liability <br/>
<a id="pl.29.8"></a><var>29.8</var>partnership, trust, or limited liability company and which for the applicable taxable year is <br/>
<a id="pl.29.9"></a><var>29.9</var>not taxed as a corporation under chapter 290.<br/>
<a id="pl.29.10"></a><var>29.10</var>(h) "Intern" means a student of an accredited institution of higher education, or a <br/>
<a id="pl.29.11"></a><var>29.11</var>former student who has graduated in the past six months from an accredited institution <br/>
<a id="pl.29.12"></a><var>29.12</var>of higher education, who is employed by a qualified small business in a nonpermanent <br/>
<a id="pl.29.13"></a><var>29.13</var>position for a duration of nine months or less that provides training and experience in the <br/>
<a id="pl.29.14"></a><var>29.14</var>primary business activity of the business.<br/>
<a id="pl.29.15"></a><var>29.15</var>(i) "Liquidation event" means a conversion of qualified investment for cash, cash <br/>
<a id="pl.29.16"></a><var>29.16</var>and other consideration, or any other form of equity or debt interest.<br/>
<a id="pl.29.17"></a><var>29.17</var><b>EFFECTIVE DATE.</b>This section is effective for qualified small businesses <br/>
<a id="pl.29.18"></a><var>29.18</var>certified after June 30, 2012.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.29.19"></a><var>29.19</var>    Sec. 2. Minnesota Statutes 2011 Supplement, section 116J.8737, subdivision 2, is <br/>
<a id="pl.29.20"></a><var>29.20</var>amended to read:<br/>
<a id="pl.29.21"></a><var>29.21</var>    Subd. 2. <b>Certification of qualified small businesses.</b> (a) Businesses may apply <br/>
<a id="pl.29.22"></a><var>29.22</var>to the commissioner for certification as a qualified small business for a calendar year. <br/>
<a id="pl.29.23"></a><var>29.23</var>The application must be in the form and be made under the procedures specified by the <br/>
<a id="pl.29.24"></a><var>29.24</var>commissioner, accompanied by an application fee of $150. Application fees are deposited <br/>
<a id="pl.29.25"></a><var>29.25</var>in the small business investment tax credit administration account in the special revenue <br/>
<a id="pl.29.26"></a><var>29.26</var>fund. The application for certification for 2010 must be made available on the department's <br/>
<a id="pl.29.27"></a><var>29.27</var>Web site by August 1, 2010. Applications for subsequent years' certification must be made <br/>
<a id="pl.29.28"></a><var>29.28</var>available on the department's Web site by November 1 of the preceding year.<br/>
<a id="pl.29.29"></a><var>29.29</var>(b) Within 30 days of receiving an application for certification under this subdivision, <br/>
<a id="pl.29.30"></a><var>29.30</var>the commissioner must either certify the business as satisfying the conditions required of a <br/>
<a id="pl.29.31"></a><var>29.31</var>qualified small business, request additional information from the business, or reject the <br/>
<a id="pl.29.32"></a><var>29.32</var>application for certification. If the commissioner requests additional information from the <br/>
<a id="pl.29.33"></a><var>29.33</var>business, the commissioner must either certify the business or reject the application within <br/>
<a id="pl.29.34"></a><var>29.34</var>30 days of receiving the additional information. If the commissioner neither certifies the <br/>
<a id="pl.29.35"></a><var>29.35</var>business nor rejects the application within 30 days of receiving the original application or <br/>
<a id="pl.30.1"></a><var>30.1</var>within 30 days of receiving the additional information requested, whichever is later, then <br/>
<a id="pl.30.2"></a><var>30.2</var>the application is deemed rejected, and the commissioner must refund the $150 application <br/>
<a id="pl.30.3"></a><var>30.3</var>fee. A business that applies for certification and is rejected may reapply.<br/>
<a id="pl.30.4"></a><var>30.4</var>(c) To receive certification, a business must satisfy all of the following conditions:<br/>
<a id="pl.30.5"></a><var>30.5</var>(1) the business has its headquarters in Minnesota;<br/>
<a id="pl.30.6"></a><var>30.6</var>(2) at least 51 percent of the business's employees are employed in Minnesota, and <br/>
<a id="pl.30.7"></a><var>30.7</var>51 percent of the business's total payroll is paid or incurred in the state;<br/>
<a id="pl.30.8"></a><var>30.8</var>(3) the business is engaged in, or is committed to engage in, innovation in Minnesota <br/>
<a id="pl.30.9"></a><var>30.9</var>in one of the following as its primary business activity:<br/>
<a id="pl.30.10"></a><var>30.10</var>(i) using proprietary technology to add value to a product, process, or service in a <br/>
<a id="pl.30.11"></a><var>30.11</var>qualified high-technology field;<br/>
<a id="pl.30.12"></a><var>30.12</var>(ii) researching or developing a proprietary product, process, or service in a qualified <br/>
<a id="pl.30.13"></a><var>30.13</var>high-technology field; or<br/>
<a id="pl.30.14"></a><var>30.14</var>(iii) researching, developing, or producing a new proprietary technology for use in <br/>
<a id="pl.30.15"></a><var>30.15</var>the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;<br/>
<a id="pl.30.16"></a><var>30.16</var>(4) other than the activities specifically listed in clause (3), the business is not <br/>
<a id="pl.30.17"></a><var>30.17</var>engaged in real estate development, insurance, banking, lending, lobbying, political <br/>
<a id="pl.30.18"></a><var>30.18</var>consulting, information technology consulting, wholesale or retail trade, leisure, <br/>
<a id="pl.30.19"></a><var>30.19</var>hospitality, transportation, construction, ethanol production from corn, or professional <br/>
<a id="pl.30.20"></a><var>30.20</var>services provided by attorneys, accountants, business consultants, physicians, or health <br/>
<a id="pl.30.21"></a><var>30.21</var>care consultants;<br/>
<a id="pl.30.22"></a><var>30.22</var>(5) the business has fewer than 25 employees;<br/>
<a id="pl.30.23"></a><var>30.23</var>(6) the business must pay its employees annual wages of at least 175 percent of the <br/>
<a id="pl.30.24"></a><var>30.24</var>federal poverty guideline for the year for a family of four and must pay its interns annual <br/>
<a id="pl.30.25"></a><var>30.25</var>wages of at least 175 percent of the federal minimum wage used for federally covered <br/>
<a id="pl.30.26"></a><var>30.26</var>employers, except that this requirement must be reduced proportionately for employees <br/>
<a id="pl.30.27"></a><var>30.27</var>and interns who work less than full-time, and does not apply to an executive, officer, or <br/>
<a id="pl.30.28"></a><var>30.28</var>member of the board of the business, or to any employee who owns, controls, or holds <br/>
<a id="pl.30.29"></a><var>30.29</var>power to vote more than 20 percent of the outstanding securities of the business;<br/>
<a id="pl.30.30"></a><var>30.30</var>(7) the business has not been in operation for more than ten years, except as provided <br/>
<a id="pl.30.31"></a><var>30.31</var>in clause (8);<br/>
<a id="pl.30.32"></a><var>30.32</var>(8) the business has not been in operation for more than 20 years if the business is <br/>
<a id="pl.30.33"></a><var>30.33</var>engaged in the research, development, or production of medical devices or pharmaceuticals <br/>
<a id="pl.30.34"></a><var>30.34</var>for which U.S. Food and Drug Administration approval is required for use in the treatment <br/>
<a id="pl.30.35"></a><var>30.35</var>or diagnosis of a disease or condition;<br/>
<a id="pl.31.1"></a><var>31.1</var>(8) (9) the business has not previously received private equity investments of more <br/>
<a id="pl.31.2"></a><var>31.2</var>than $4,000,000; and<br/>
<a id="pl.31.3"></a><var>31.3</var>    (9) (10) the business is not an entity disqualified under section 
         <statute_ref>80A.50</statute_ref>, paragraph <br/>
<a id="pl.31.4"></a><var>31.4</var>(b), clause (3); and<br/>
<a id="pl.31.5"></a><var>31.5</var>(11) the business has not issued securities that are traded on a public exchange.<br/>
<a id="pl.31.6"></a><var>31.6</var>(d) In applying the limit under paragraph (c), clause (5), the employees in all <br/>
<a id="pl.31.7"></a><var>31.7</var>members of the unitary business, as defined in section 
         <statute_ref>290.17, subdivision 4</statute_ref>, must be <br/>
<a id="pl.31.8"></a><var>31.8</var>included.<br/>
<a id="pl.31.9"></a><var>31.9</var>(e) In order for a qualified investment in a business to be eligible for tax credits,:<br/>
<a id="pl.31.10"></a><var>31.10</var>(1) the business must have applied for and received certification for the calendar <br/>
<a id="pl.31.11"></a><var>31.11</var>year in which the investment was made prior to the date on which the qualified investment <br/>
<a id="pl.31.12"></a><var>31.12</var>was made.;<br/>
<a id="pl.31.13"></a><var>31.13</var>(2) the business must not have issued securities that are traded on a public exchange;<br/>
<a id="pl.31.14"></a><var>31.14</var>(3) the business must not issue securities that are traded on a public exchange within <br/>
<a id="pl.31.15"></a><var>31.15</var>180 days subsequent to the date on which the qualified investment was made; and<br/>
<a id="pl.31.16"></a><var>31.16</var>(4) the business must not have a liquidation event within 180 days subsequent to the <br/>
<a id="pl.31.17"></a><var>31.17</var>date on which the qualified investment was made.<br/>
<a id="pl.31.18"></a><var>31.18</var>(f) The commissioner must maintain a list of businesses certified under this <br/>
<a id="pl.31.19"></a><var>31.19</var>subdivision for the calendar year and make the list accessible to the public on the <br/>
<a id="pl.31.20"></a><var>31.20</var>department's Web site.<br/>
<a id="pl.31.21"></a><var>31.21</var>(g) For purposes of this subdivision, the following terms have the meanings given:<br/>
<a id="pl.31.22"></a><var>31.22</var>(1) "qualified high-technology field" includes aerospace, agricultural processing, <br/>
<a id="pl.31.23"></a><var>31.23</var>renewable energy, energy efficiency and conservation, environmental engineering, food <br/>
<a id="pl.31.24"></a><var>31.24</var>technology, cellulosic ethanol, information technology, materials science technology, <br/>
<a id="pl.31.25"></a><var>31.25</var>nanotechnology, telecommunications, biotechnology, medical device products, <br/>
<a id="pl.31.26"></a><var>31.26</var>pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar <br/>
<a id="pl.31.27"></a><var>31.27</var>fields; and<br/>
<a id="pl.31.28"></a><var>31.28</var>(2) "proprietary technology" means the technical innovations that are unique and <br/>
<a id="pl.31.29"></a><var>31.29</var>legally owned or licensed by a business and includes, without limitation, those innovations <br/>
<a id="pl.31.30"></a><var>31.30</var>that are patented, patent pending, a subject of trade secrets, or copyrighted.<br/>
<a id="pl.31.31"></a><var>31.31</var><b>EFFECTIVE DATE.</b>This section is effective for qualified small businesses <br/>
<a id="pl.31.32"></a><var>31.32</var>certified after June 30, 2012, except the amendments to paragraph (c), clause (7), and <br/>
<a id="pl.31.33"></a><var>31.33</var>paragraph (c), adding clause (8), are effective the day following final enactment.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.31.34"></a><var>31.34</var>    Sec. 3. Minnesota Statutes 2010, section 116J.8737, subdivision 5, is amended to read:<br/>
<a id="pl.32.1"></a><var>32.1</var>    Subd. 5. <b>Credit allowed.</b> (a) A qualified investor or qualified fund is eligible for <br/>
<a id="pl.32.2"></a><var>32.2</var>a credit equal to 25 percent of the qualified investment in a qualified small business. <br/>
<a id="pl.32.3"></a><var>32.3</var>Investments made by a pass-through entity qualify for a credit only if the entity is a <br/>
<a id="pl.32.4"></a><var>32.4</var>qualified fund. The commissioner must not allocate more than $11,000,000 in credits to <br/>
<a id="pl.32.5"></a><var>32.5</var>qualified investors or qualified funds for taxable years beginning after December 31, <br/>
<a id="pl.32.6"></a><var>32.6</var>2009, and before January 1, 2011, and must not allocate more than $12,000,000 in credits <br/>
<a id="pl.32.7"></a><var>32.7</var>per year for taxable years beginning after December 31, 2010, and before January 1, <br/>
<a id="pl.32.8"></a><var>32.8</var>2015 2012, must not allocate more than $16,500,000 in credits per year for taxable years <br/>
<a id="pl.32.9"></a><var>32.9</var>beginning after December 31, 2011, and before January 1, 2013, and must not allocate <br/>
<a id="pl.32.10"></a><var>32.10</var>more than $17,000,000 in credits per year for taxable years beginning after December 31, <br/>
<a id="pl.32.11"></a><var>32.11</var>2012, and before January 1, 2015. Any portion of a taxable year's credits that is not <br/>
<a id="pl.32.12"></a><var>32.12</var>allocated by the commissioner does not cancel and may be carried forward to subsequent <br/>
<a id="pl.32.13"></a><var>32.13</var>taxable years until all credits have been allocated.<br/>
<a id="pl.32.14"></a><var>32.14</var>(b) The commissioner may not allocate more than a total maximum amount in credits <br/>
<a id="pl.32.15"></a><var>32.15</var>for a taxable year to a qualified investor for the investor's cumulative qualified investments <br/>
<a id="pl.32.16"></a><var>32.16</var>as an individual qualified investor and as an investor in a qualified fund; for married <br/>
<a id="pl.32.17"></a><var>32.17</var>couples filing joint returns the maximum is $250,000, and for all other filers the maximum <br/>
<a id="pl.32.18"></a><var>32.18</var>is $125,000. The commissioner may not allocate more than a total of $1,000,000 in credits <br/>
<a id="pl.32.19"></a><var>32.19</var>over all taxable years for qualified investments in any one qualified small business.<br/>
<a id="pl.32.20"></a><var>32.20</var>(c) The commissioner may not allocate a credit to a qualified investor either as an <br/>
<a id="pl.32.21"></a><var>32.21</var>individual qualified investor or as an investor in a qualified fund if the investor receives <br/>
<a id="pl.32.22"></a><var>32.22</var>more than 50 percent of the investor's gross annual income from the qualified small <br/>
<a id="pl.32.23"></a><var>32.23</var>business in which the qualified investment is proposed. A member of the family of an <br/>
<a id="pl.32.24"></a><var>32.24</var>individual disqualified by this paragraph is not eligible for a credit under this section. For <br/>
<a id="pl.32.25"></a><var>32.25</var>a married couple filing a joint return, the limitations in this paragraph apply collectively <br/>
<a id="pl.32.26"></a><var>32.26</var>to the investor and spouse. For purposes of determining the ownership interest of an <br/>
<a id="pl.32.27"></a><var>32.27</var>investor under this paragraph, the rules under section 267(c) and 267(e) of the Internal <br/>
<a id="pl.32.28"></a><var>32.28</var>Revenue Code apply.<br/>
<a id="pl.32.29"></a><var>32.29</var>(d) Applications for tax credits for 2010 must be made available on the department's <br/>
<a id="pl.32.30"></a><var>32.30</var>Web site by September 1, 2010, and the department must begin accepting applications <br/>
<a id="pl.32.31"></a><var>32.31</var>by September 1, 2010. Applications for subsequent years must be made available by <br/>
<a id="pl.32.32"></a><var>32.32</var>November 1 of the preceding year.<br/>
<a id="pl.32.33"></a><var>32.33</var>(e) Qualified investors and qualified funds must apply to the commissioner for tax <br/>
<a id="pl.32.34"></a><var>32.34</var>credits. Tax credits must be allocated to qualified investors or qualified funds in the order <br/>
<a id="pl.32.35"></a><var>32.35</var>that the tax credit request applications are filed with the department. The commissioner <br/>
<a id="pl.32.36"></a><var>32.36</var>must approve or reject tax credit request applications within 15 days of receiving the <br/>
<a id="pl.33.1"></a><var>33.1</var>application. The investment specified in the application must be made within 60 days of <br/>
<a id="pl.33.2"></a><var>33.2</var>the allocation of the credits. If the investment is not made within 60 days, the credit <br/>
<a id="pl.33.3"></a><var>33.3</var>allocation is canceled and available for reallocation. A qualified investor or qualified fund <br/>
<a id="pl.33.4"></a><var>33.4</var>that fails to invest as specified in the application, within 60 days of allocation of the <br/>
<a id="pl.33.5"></a><var>33.5</var>credits, must notify the commissioner of the failure to invest within five business days of <br/>
<a id="pl.33.6"></a><var>33.6</var>the expiration of the 60-day investment period.<br/>
<a id="pl.33.7"></a><var>33.7</var>(f) All tax credit request applications filed with the department on the same day must <br/>
<a id="pl.33.8"></a><var>33.8</var>be treated as having been filed contemporaneously. If two or more qualified investors or <br/>
<a id="pl.33.9"></a><var>33.9</var>qualified funds file tax credit request applications on the same day, and the aggregate <br/>
<a id="pl.33.10"></a><var>33.10</var>amount of credit allocation claims exceeds the aggregate limit of credits under this section <br/>
<a id="pl.33.11"></a><var>33.11</var>or the lesser amount of credits that remain unallocated on that day, then the credits must <br/>
<a id="pl.33.12"></a><var>33.12</var>be allocated among the qualified investors or qualified funds who filed on that day on a <br/>
<a id="pl.33.13"></a><var>33.13</var>pro rata basis with respect to the amounts claimed. The pro rata allocation for any one <br/>
<a id="pl.33.14"></a><var>33.14</var>qualified investor or qualified fund is the product obtained by multiplying a fraction, <br/>
<a id="pl.33.15"></a><var>33.15</var>the numerator of which is the amount of the credit allocation claim filed on behalf of <br/>
<a id="pl.33.16"></a><var>33.16</var>a qualified investor and the denominator of which is the total of all credit allocation <br/>
<a id="pl.33.17"></a><var>33.17</var>claims filed on behalf of all applicants on that day, by the amount of credits that remain <br/>
<a id="pl.33.18"></a><var>33.18</var>unallocated on that day for the taxable year.<br/>
<a id="pl.33.19"></a><var>33.19</var>(g) A qualified investor or qualified fund, or a qualified small business acting on their <br/>
<a id="pl.33.20"></a><var>33.20</var>behalf, must notify the commissioner when an investment for which credits were allocated <br/>
<a id="pl.33.21"></a><var>33.21</var>has been made, and the taxable year in which the investment was made. A qualified fund <br/>
<a id="pl.33.22"></a><var>33.22</var>must also provide the commissioner with a statement indicating the amount invested by <br/>
<a id="pl.33.23"></a><var>33.23</var>each investor in the qualified fund based on each investor's share of the assets of the <br/>
<a id="pl.33.24"></a><var>33.24</var>qualified fund at the time of the qualified investment. After receiving notification that the <br/>
<a id="pl.33.25"></a><var>33.25</var>investment was made, the commissioner must issue credit certificates for the taxable year <br/>
<a id="pl.33.26"></a><var>33.26</var>in which the investment was made to the qualified investor or, for an investment made by <br/>
<a id="pl.33.27"></a><var>33.27</var>a qualified fund, to each qualified investor who is an investor in the fund. The certificate <br/>
<a id="pl.33.28"></a><var>33.28</var>must state that the credit is subject to revocation if the qualified investor or qualified <br/>
<a id="pl.33.29"></a><var>33.29</var>fund does not hold the investment in the qualified small business for at least three years, <br/>
<a id="pl.33.30"></a><var>33.30</var>consisting of the calendar year in which the investment was made and the two following <br/>
<a id="pl.33.31"></a><var>33.31</var>years. The three-year holding period does not apply if:<br/>
<a id="pl.33.32"></a><var>33.32</var>(1) the investment by the qualified investor or qualified fund becomes worthless <br/>
<a id="pl.33.33"></a><var>33.33</var>before the end of the three-year period;<br/>
<a id="pl.33.34"></a><var>33.34</var>(2) 80 percent or more of the assets of the qualified small business is sold before <br/>
<a id="pl.33.35"></a><var>33.35</var>the end of the three-year period;<br/>
<a id="pl.33.36"></a><var>33.36</var>(3) the qualified small business is sold before the end of the three-year period; or<br/>
<a id="pl.34.1"></a><var>34.1</var>(4) the qualified small business's common stock begins trading on a public exchange <br/>
<a id="pl.34.2"></a><var>34.2</var>before the end of the three-year period.<br/>
<a id="pl.34.3"></a><var>34.3</var>(h) The commissioner must notify the commissioner of revenue of credit certificates <br/>
<a id="pl.34.4"></a><var>34.4</var>issued under this section.<br/>
<a id="pl.34.5"></a><var>34.5</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.34.6"></a><var>34.6</var>December 31, 2011.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.34.7"></a><var>34.7</var>    Sec. 4. Minnesota Statutes 2010, section 116J.8737, is amended by adding a <br/>
<a id="pl.34.8"></a><var>34.8</var>subdivision to read:<br/>
<a id="pl.34.9"></a><var>34.9</var>    Subd. 5a. <b>Promotion of credit in greater Minnesota.</b> (a) By July 1, 2012, the <br/>
<a id="pl.34.10"></a><var>34.10</var>commissioner shall develop a plan to increase awareness of and use of the credit for <br/>
<a id="pl.34.11"></a><var>34.11</var>investments in greater Minnesota businesses with a target goal that a minimum of 30 <br/>
<a id="pl.34.12"></a><var>34.12</var>percent of the credit will be awarded for those investments during the second half <br/>
<a id="pl.34.13"></a><var>34.13</var>of calendar year 2013 and for each full calendar year thereafter. Beginning with the <br/>
<a id="pl.34.14"></a><var>34.14</var>legislative report due on March 15, 2013, under subdivision 9, the commissioner shall <br/>
<a id="pl.34.15"></a><var>34.15</var>report on its plan under this subdivision and the results achieved.<br/>
<a id="pl.34.16"></a><var>34.16</var>(b) If the target goal of 30 percent under paragraph (a) is not achieved for the <br/>
<a id="pl.34.17"></a><var>34.17</var>six-month period ending on December 31, 2013, the credit percentage under subdivision <br/>
<a id="pl.34.18"></a><var>34.18</var>5, paragraph (a), is increased to 40 percent for a qualified investment made after December <br/>
<a id="pl.34.19"></a><var>34.19</var>31, 2013, in a greater Minnesota business. This paragraph does not apply and the credit <br/>
<a id="pl.34.20"></a><var>34.20</var>percentage for all qualified investments is the rate provided under subdivision 5 for any <br/>
<a id="pl.34.21"></a><var>34.21</var>calendar year beginning after a calendar year for which the commissioner determines the <br/>
<a id="pl.34.22"></a><var>34.22</var>30 percent target has been satisfied. The commissioner shall timely post notification of <br/>
<a id="pl.34.23"></a><var>34.23</var>changes in the credit rate under this paragraph on the department's website.<br/>
<a id="pl.34.24"></a><var>34.24</var>(c) For purposes of this section, a "greater Minnesota business" means a qualified <br/>
<a id="pl.34.25"></a><var>34.25</var>small business with its headquarters and 51 percent or more of its employees employed <br/>
<a id="pl.34.26"></a><var>34.26</var>at Minnesota locations outside of the metropolitan area as defined in section 473.121, <br/>
<a id="pl.34.27"></a><var>34.27</var>subdivision 2.<br/>
<a id="pl.34.28"></a><var>34.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.34.29"></a><var>34.29</var>    Sec. 5. Minnesota Statutes 2010, section 116J.8737, subdivision 8, is amended to read:<br/>
<a id="pl.34.30"></a><var>34.30</var>    Subd. 8. <b>Data privacy.</b> (a) Data contained in an application submitted to the <br/>
<a id="pl.34.31"></a><var>34.31</var>commissioner under subdivision 2, 3, or 4 are nonpublic data, or private data on <br/>
<a id="pl.34.32"></a><var>34.32</var>individuals, as defined in section 
         <statute_ref>13.02, subdivision 9</statute_ref> or 12, except that the following <br/>
<a id="pl.34.33"></a><var>34.33</var>data items are public:<br/>
<a id="pl.35.1"></a><var>35.1</var>(1) the name, mailing address, telephone number, e-mail address, contact person's <br/>
<a id="pl.35.2"></a><var>35.2</var>name, and industry type of a qualified small business upon approval of the application <br/>
<a id="pl.35.3"></a><var>35.3</var>and certification by the commissioner under subdivision 2;<br/>
<a id="pl.35.4"></a><var>35.4</var>(2) the name of a qualified investor upon approval of the application and certification <br/>
<a id="pl.35.5"></a><var>35.5</var>by the commissioner under subdivision 3;<br/>
<a id="pl.35.6"></a><var>35.6</var>(3) the name of a qualified fund upon approval of the application and certification <br/>
<a id="pl.35.7"></a><var>35.7</var>by the commissioner under subdivision 4;<br/>
<a id="pl.35.8"></a><var>35.8</var>(4) for credit certificates issued under subdivision 5, the amount of the credit <br/>
<a id="pl.35.9"></a><var>35.9</var>certificate issued, amount of the qualifying investment, the name of the qualifying investor <br/>
<a id="pl.35.10"></a><var>35.10</var>or qualifying fund that received the certificate, and the name of the qualifying small <br/>
<a id="pl.35.11"></a><var>35.11</var>business in which the qualifying investment was made;<br/>
<a id="pl.35.12"></a><var>35.12</var>(5) for credits revoked under subdivision 7, paragraph (a), the amount revoked and <br/>
<a id="pl.35.13"></a><var>35.13</var>the name of the qualified investor or qualified fund; and<br/>
<a id="pl.35.14"></a><var>35.14</var>(6) for credits revoked under subdivision 7, paragraphs (b) and (c), the amount <br/>
<a id="pl.35.15"></a><var>35.15</var>revoked and the name of the qualified small business.<br/>
<a id="pl.35.16"></a><var>35.16</var>(b) The following data, including data classified as nonpublic or private, must be <br/>
<a id="pl.35.17"></a><var>35.17</var>provided to the consultant for use in conducting the program evaluation under subdivision <br/>
<a id="pl.35.18"></a><var>35.18</var>10:<br/>
<a id="pl.35.19"></a><var>35.19</var>(1) the commissioner of employment and economic development shall provide data <br/>
<a id="pl.35.20"></a><var>35.20</var>contained in an application for certification received from a qualified small business, <br/>
<a id="pl.35.21"></a><var>35.21</var>qualified investor, or qualified fund, and any annual reporting information received on a <br/>
<a id="pl.35.22"></a><var>35.22</var>qualified small business, qualified investor, or qualified fund; and<br/>
<a id="pl.35.23"></a><var>35.23</var>(2) the commissioner of revenue shall provide data contained in any applicable tax <br/>
<a id="pl.35.24"></a><var>35.24</var>returns of a qualified small business, qualified investor, or qualified fund.<br/>
<a id="pl.35.25"></a><var>35.25</var><b>EFFECTIVE DATE.</b>This section is effective for businesses requesting certification <br/>
<a id="pl.35.26"></a><var>35.26</var>starting on the day following final enactment.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.35.27"></a><var>35.27</var>    Sec. 6. Minnesota Statutes 2011 Supplement, section 289A.02, subdivision 7, is <br/>
<a id="pl.35.28"></a><var>35.28</var>amended to read:<br/>
<a id="pl.35.29"></a><var>35.29</var>    Subd. 7. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br/>
<a id="pl.35.30"></a><var>35.30</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through April 14, <br/>
<a id="pl.35.31"></a><var>35.31</var>2011 February 14, 2012.<br/>
<a id="pl.35.32"></a><var>35.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.35.33"></a><var>35.33</var>    Sec. 7. Minnesota Statutes 2010, section 289A.31, subdivision 5, is amended to read:<br/>
<a id="pl.36.1"></a><var>36.1</var>    Subd. 5. <b>Withholding tax, withholding from payments to out-of-state </b><br/>
<a id="pl.36.2"></a><var>36.2</var><b>contractors, and withholding by partnerships and small business corporations.</b> (a) <br/>
<a id="pl.36.3"></a><var>36.3</var>Except as provided in paragraph (b), an employer or person withholding tax under section <br/>
<statute_ref><a id="pl.36.4"></a><var>36.4</var>290.92
         </statute_ref> or 
         <statute_ref>290.923, subdivision 2</statute_ref>, who fails to pay to or deposit with the commissioner a <br/>
<a id="pl.36.5"></a><var>36.5</var>sum or sums required by those sections to be deducted, withheld, and paid, is personally <br/>
<a id="pl.36.6"></a><var>36.6</var>and individually liable to the state for the sum or sums, and added penalties and interest, <br/>
<a id="pl.36.7"></a><var>36.7</var>and is not liable to another person for that payment or payments. The sum or sums <br/>
<a id="pl.36.8"></a><var>36.8</var>deducted and withheld under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> or 3, or 
         <statute_ref>290.923, subdivision <br/>
<a id="pl.36.9"></a><var>36.9</var>2
         </statute_ref>, must be held as a special fund in trust for the state of Minnesota.<br/>
<a id="pl.36.10"></a><var>36.10</var>(b) If the employer or person withholding tax under section 
         <statute_ref>290.92</statute_ref> or 
         <statute_ref>290.923, <br/>
<a id="pl.36.11"></a><var>36.11</var>subdivision 2
         </statute_ref>, fails to deduct and withhold the tax in violation of those sections, and later <br/>
<a id="pl.36.12"></a><var>36.12</var>the taxes against which the tax may be credited are paid, the tax required to be deducted <br/>
<a id="pl.36.13"></a><var>36.13</var>and withheld will not be collected from the employer. This does not, however, relieve the <br/>
<a id="pl.36.14"></a><var>36.14</var>employer from liability for any penalties and interest otherwise applicable for failure to <br/>
<a id="pl.36.15"></a><var>36.15</var>deduct and withhold. This paragraph does not apply to an employer subject to paragraph <br/>
<a id="pl.36.16"></a><var>36.16</var>(g), or to a contractor required to withhold under section 
<statute_ref>290.92, subdivision 31</statute_ref>.<br/>
<a id="pl.36.17"></a><var>36.17</var>(c) Liability for payment of withholding taxes includes a responsible person or entity <br/>
<a id="pl.36.18"></a><var>36.18</var>described in the personal liability provisions of section 
         <statute_ref>270C.56</statute_ref>.<br/>
<a id="pl.36.19"></a><var>36.19</var>(d) Liability for payment of withholding taxes includes a third-party lender or surety <br/>
<a id="pl.36.20"></a><var>36.20</var>described in section 
         <statute_ref>270C.59</statute_ref>.<br/>
<a id="pl.36.21"></a><var>36.21</var>(e) A partnership or S corporation required to withhold and remit tax under section <br/>
<statute_ref><a id="pl.36.22"></a><var>36.22</var>290.92, subdivisions 4b and 4c
         </statute_ref>, is liable for payment of the tax to the commissioner, and a <br/>
<a id="pl.36.23"></a><var>36.23</var>person having control of or responsibility for the withholding of the tax or the filing of <br/>
<a id="pl.36.24"></a><var>36.24</var>returns due in connection with the tax is personally liable for the tax due.<br/>
<a id="pl.36.25"></a><var>36.25</var>(f) A payor of sums required to be withheld under section 
         <statute_ref>290.9705, subdivision <br/>
<a id="pl.36.26"></a><var>36.26</var>1
         </statute_ref>, is liable to the state for the amount required to be deducted, and is not liable to an <br/>
<a id="pl.36.27"></a><var>36.27</var>out-of-state contractor for the amount of the payment.<br/>
<a id="pl.36.28"></a><var>36.28</var>(g) If an employer fails to withhold tax from the wages of an employee when <br/>
<a id="pl.36.29"></a><var>36.29</var>required to do so under section 
         <statute_ref>290.92, subdivision 2a</statute_ref>, by reason of treating such <br/>
<a id="pl.36.30"></a><var>36.30</var>employee as not being an employee, then the liability for tax is equal to three percent of <br/>
<a id="pl.36.31"></a><var>36.31</var>the wages paid to the employee. The liability for tax of an employee is not affected by <br/>
<a id="pl.36.32"></a><var>36.32</var>the assessment or collection of tax under this paragraph. The employer is not entitled to <br/>
<a id="pl.36.33"></a><var>36.33</var>recover from the employee any tax determined under this paragraph.<br/>
<a id="pl.36.34"></a><var>36.34</var><b>EFFECTIVE DATE.</b>This section is effective for payments made after June 30, <br/>
<a id="pl.36.35"></a><var>36.35</var>2012.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.37.1"></a><var>37.1</var>    Sec. 8. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19, is <br/>
<a id="pl.37.2"></a><var>37.2</var>amended to read:<br/>
<a id="pl.37.3"></a><var>37.3</var>    Subd. 19. <b>Net income.</b> The term "net income" means the federal taxable income, <br/>
<a id="pl.37.4"></a><var>37.4</var>as defined in section 63 of the Internal Revenue Code of 1986, as amended through the <br/>
<a id="pl.37.5"></a><var>37.5</var>date named in this subdivision, incorporating the federal effective dates of changes to the <br/>
<a id="pl.37.6"></a><var>37.6</var>Internal Revenue Code and any elections made by the taxpayer in accordance with the <br/>
<a id="pl.37.7"></a><var>37.7</var>Internal Revenue Code in determining federal taxable income for federal income tax <br/>
<a id="pl.37.8"></a><var>37.8</var>purposes, and with the modifications provided in subdivisions 19a to 19f.<br/>
<a id="pl.37.9"></a><var>37.9</var>    In the case of a regulated investment company or a fund thereof, as defined in section <br/>
<a id="pl.37.10"></a><var>37.10</var>851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment <br/>
<a id="pl.37.11"></a><var>37.11</var>company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, <br/>
<a id="pl.37.12"></a><var>37.12</var>except that:<br/>
<a id="pl.37.13"></a><var>37.13</var>    (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal <br/>
<a id="pl.37.14"></a><var>37.14</var>Revenue Code does not apply;<br/>
<a id="pl.37.15"></a><var>37.15</var>    (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal <br/>
<a id="pl.37.16"></a><var>37.16</var>Revenue Code must be applied by allowing a deduction for capital gain dividends and <br/>
<a id="pl.37.17"></a><var>37.17</var>exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal <br/>
<a id="pl.37.18"></a><var>37.18</var>Revenue Code; and<br/>
<a id="pl.37.19"></a><var>37.19</var>    (3) the deduction for dividends paid must also be applied in the amount of any <br/>
<a id="pl.37.20"></a><var>37.20</var>undistributed capital gains which the regulated investment company elects to have treated <br/>
<a id="pl.37.21"></a><var>37.21</var>as provided in section 852(b)(3)(D) of the Internal Revenue Code.<br/>
<a id="pl.37.22"></a><var>37.22</var>    The net income of a real estate investment trust as defined and limited by section <br/>
<a id="pl.37.23"></a><var>37.23</var>856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust <br/>
<a id="pl.37.24"></a><var>37.24</var>taxable income as defined in section 857(b)(2) of the Internal Revenue Code.<br/>
<a id="pl.37.25"></a><var>37.25</var>    The net income of a designated settlement fund as defined in section 468B(d) of <br/>
<a id="pl.37.26"></a><var>37.26</var>the Internal Revenue Code means the gross income as defined in section 468B(b) of the <br/>
<a id="pl.37.27"></a><var>37.27</var>Internal Revenue Code.<br/>
<a id="pl.37.28"></a><var>37.28</var>    The Internal Revenue Code of 1986, as amended through April 14, 2011 February <br/>
<a id="pl.37.29"></a><var>37.29</var>14, 2012, shall be in effect for taxable years beginning after December 31, 1996. The <br/>
<a id="pl.37.30"></a><var>37.30</var>provisions of the act of January 22, 2010, Public Law 111-126, to accelerate the benefits <br/>
<a id="pl.37.31"></a><var>37.31</var>for charitable cash contributions for the relief of victims of the Haitian earthquake, are <br/>
<a id="pl.37.32"></a><var>37.32</var>effective at the same time they became effective for federal purposes and apply to the <br/>
<a id="pl.37.33"></a><var>37.33</var>subtraction under subdivision 19b, clause (6). The provisions of title II, section 2112, of <br/>
<a id="pl.37.34"></a><var>37.34</var>the act of September 27, 2010, Public Law 111-240, rollovers from elective deferral plans <br/>
<a id="pl.37.35"></a><var>37.35</var>to designated Roth accounts, are effective at the same time they became effective for <br/>
<a id="pl.38.1"></a><var>38.1</var>federal purposes and taxable rollovers are included in net income at the same time they are <br/>
<a id="pl.38.2"></a><var>38.2</var>included in gross income for federal purposes.<br/>
<a id="pl.38.3"></a><var>38.3</var>    Except as otherwise provided, references to the Internal Revenue Code in <br/>
<a id="pl.38.4"></a><var>38.4</var>subdivisions 19 to 19f mean the code in effect for purposes of determining net income for <br/>
<a id="pl.38.5"></a><var>38.5</var>the applicable year.<br/>
<a id="pl.38.6"></a><var>38.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.38.7"></a><var>38.7</var>    Sec. 9. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 31, is <br/>
<a id="pl.38.8"></a><var>38.8</var>amended to read:<br/>
<a id="pl.38.9"></a><var>38.9</var>    Subd. 31. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br/>
<a id="pl.38.10"></a><var>38.10</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through April 14, <br/>
<a id="pl.38.11"></a><var>38.11</var>2011 February 14, 2012. Internal Revenue Code also includes any uncodified provision in <br/>
<a id="pl.38.12"></a><var>38.12</var>federal law that relates to provisions of the Internal Revenue Code that are incorporated <br/>
<a id="pl.38.13"></a><var>38.13</var>into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1, <br/>
<a id="pl.38.14"></a><var>38.14</var>subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as <br/>
<a id="pl.38.15"></a><var>38.15</var>amended through March 18, 2010.<br/>
<a id="pl.38.16"></a><var>38.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.38.17"></a><var>38.17</var>    Sec. 10. Minnesota Statutes 2010, section 290.068, subdivision 1, is amended to read:<br/>
<a id="pl.38.18"></a><var>38.18</var>    Subdivision 1. <b>Credit allowed.</b> A corporation, partners in a partnership, or <br/>
<a id="pl.38.19"></a><var>38.19</var>shareholders in a corporation treated as an "S" corporation under section 
         <statute_ref>290.9725</statute_ref> are <br/>
<a id="pl.38.20"></a><var>38.20</var>allowed a credit against the tax computed under this chapter for the taxable year equal to:<br/>
<a id="pl.38.21"></a><var>38.21</var>    (a) ten percent of the first $2,000,000 of the excess (if any) of<br/>
<a id="pl.38.22"></a><var>38.22</var>    (1) the qualified research expenses for the taxable year, over<br/>
<a id="pl.38.23"></a><var>38.23</var>    (2) the base amount; and<br/>
<a id="pl.38.24"></a><var>38.24</var>    (b) 2.5 3.1 percent on all of such excess expenses over $2,000,000 for taxable years <br/>
<a id="pl.38.25"></a><var>38.25</var>beginning after December 31, 2011.<br/>
<a id="pl.38.26"></a><var>38.26</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.38.27"></a><var>38.27</var>December 31, 2011.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.38.28"></a><var>38.28</var>    Sec. 11. Minnesota Statutes 2010, section 290.0681, subdivision 1, is amended to read:<br/>
<a id="pl.38.29"></a><var>38.29</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.38.30"></a><var>38.30</var>have the meanings given.<br/>
<a id="pl.38.31"></a><var>38.31</var>(b) "Account" means the historic credit administration account in the special <br/>
<a id="pl.38.32"></a><var>38.32</var>revenue fund.<br/>
<a id="pl.39.1"></a><var>39.1</var>(c) "Office" means the State Historic Preservation Office of the Minnesota Historical <br/>
<a id="pl.39.2"></a><var>39.2</var>Society.<br/>
<a id="pl.39.3"></a><var>39.3</var>(d) "Project" means rehabilitation of a certified historic structure, as defined in <br/>
<a id="pl.39.4"></a><var>39.4</var>section 47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is <br/>
<a id="pl.39.5"></a><var>39.5</var>allowed a federal credit under section 47(a)(2) of the Internal Revenue Code.<br/>
<a id="pl.39.6"></a><var>39.6</var>(e) "Society" means the Minnesota Historical Society.<br/>
<a id="pl.39.7"></a><var>39.7</var>(f) "Federal credit" means the credit allowed under section 47(a)(2) of the Internal <br/>
<a id="pl.39.8"></a><var>39.8</var>Revenue Code.<br/>
<a id="pl.39.9"></a><var>39.9</var>(g) "Placed in service" has the meaning used in section 47 of the Internal Revenue <br/>
<a id="pl.39.10"></a><var>39.10</var>Code.<br/>
<a id="pl.39.11"></a><var>39.11</var>(h) "Qualified rehabilitation expenditures" has the meaning given in section 47 of <br/>
<a id="pl.39.12"></a><var>39.12</var>the Internal Revenue Code.<br/>
<a id="pl.39.13"></a><var>39.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.39.14"></a><var>39.14</var>    Sec. 12. Minnesota Statutes 2010, section 290.0681, subdivision 3, is amended to read:<br/>
<a id="pl.39.15"></a><var>39.15</var>    Subd. 3. <b>Applications; allocations.</b> (a) To qualify for a credit or grant under this <br/>
<a id="pl.39.16"></a><var>39.16</var>section, the developer of a project must apply to the office before the rehabilitation begins. <br/>
<a id="pl.39.17"></a><var>39.17</var>The application must contain the information and be in the form prescribed by the office. <br/>
<a id="pl.39.18"></a><var>39.18</var>The office may collect a fee for application of up to $5,000, based on estimated qualified <br/>
<a id="pl.39.19"></a><var>39.19</var>rehabilitation expenses expenditures, to offset costs associated with personnel and <br/>
<a id="pl.39.20"></a><var>39.20</var>administrative expenses related to administering the credit and preparing the economic <br/>
<a id="pl.39.21"></a><var>39.21</var>impact report in subdivision 9. Application fees are deposited in the account. The <br/>
<a id="pl.39.22"></a><var>39.22</var>application must indicate if the application is for a credit or a grant in lieu of the credit <br/>
<a id="pl.39.23"></a><var>39.23</var>or a combination of the two and designate the taxpayer qualifying for the credit or the <br/>
<a id="pl.39.24"></a><var>39.24</var>recipient of the grant.<br/>
<a id="pl.39.25"></a><var>39.25</var>    (b) Upon approving an application for credit, the office shall issue allocation <br/>
<a id="pl.39.26"></a><var>39.26</var>certificates that:<br/>
<a id="pl.39.27"></a><var>39.27</var>    (1) verify eligibility for the credit or grant;<br/>
<a id="pl.39.28"></a><var>39.28</var>    (2) state the amount of credit or grant anticipated with the project, with the credit <br/>
<a id="pl.39.29"></a><var>39.29</var>amount equal to 100 percent and the grant amount equal to 90 percent of the federal <br/>
<a id="pl.39.30"></a><var>39.30</var>credit anticipated in the application;<br/>
<a id="pl.39.31"></a><var>39.31</var>    (3) state that the credit or grant allowed may increase or decrease if the federal <br/>
<a id="pl.39.32"></a><var>39.32</var>credit the project receives at the time it is placed in service is different than the amount <br/>
<a id="pl.39.33"></a><var>39.33</var>anticipated at the time the allocation certificate is issued; and<br/>
<a id="pl.39.34"></a><var>39.34</var>    (4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer <br/>
<a id="pl.39.35"></a><var>39.35</var>or grant recipient is entitled to receive the credit or grant at the time the project is placed <br/>
<a id="pl.40.1"></a><var>40.1</var>in service, provided that date is within three calendar years following the issuance of <br/>
<a id="pl.40.2"></a><var>40.2</var>the allocation certificate.<br/>
<a id="pl.40.3"></a><var>40.3</var>    (c) The office, in consultation with the commissioner of revenue, shall determine <br/>
<a id="pl.40.4"></a><var>40.4</var>if the project is eligible for a credit or a grant under this section and must notify the <br/>
<a id="pl.40.5"></a><var>40.5</var>developer in writing of its determination. Eligibility for the credit is subject to review <br/>
<a id="pl.40.6"></a><var>40.6</var>and audit by the commissioner of revenue.<br/>
<a id="pl.40.7"></a><var>40.7</var>    (d) The federal credit recapture and repayment requirements under section 50 of the <br/>
<a id="pl.40.8"></a><var>40.8</var>Internal Revenue Code do not apply to the credit allowed under this section.<br/>
<a id="pl.40.9"></a><var>40.9</var>(e) Any decision of the office under paragraph (c) of this subdivision may be <br/>
<a id="pl.40.10"></a><var>40.10</var>challenged as a contested case under chapter 14. The contested case proceeding must be <br/>
<a id="pl.40.11"></a><var>40.11</var>initiated within 45 days of the date of written notification by the office.<br/>
<a id="pl.40.12"></a><var>40.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.40.13"></a><var>40.13</var>    Sec. 13. Minnesota Statutes 2010, section 290.0681, subdivision 4, is amended to read:<br/>
<a id="pl.40.14"></a><var>40.14</var>    Subd. 4. <b>Credit certificates</b><b>; grants</b><b>.</b> (a)(1) The developer of a project for which the <br/>
<a id="pl.40.15"></a><var>40.15</var>office has issued an allocation certificate must notify the office when the project is placed <br/>
<a id="pl.40.16"></a><var>40.16</var>in service. Upon verifying that the project has been placed in service, and was allowed a <br/>
<a id="pl.40.17"></a><var>40.17</var>federal credit, the office must issue a credit certificate to the taxpayer designated in the <br/>
<a id="pl.40.18"></a><var>40.18</var>application or must issue a grant to the recipient designated in the application. The credit <br/>
<a id="pl.40.19"></a><var>40.19</var>certificate must state the amount of the credit.<br/>
<a id="pl.40.20"></a><var>40.20</var>    (2) The credit amount equals the federal credit allowed for the project.<br/>
<a id="pl.40.21"></a><var>40.21</var>    (3) The grant amount equals 90 percent of the federal credit allowed for the project.<br/>
<a id="pl.40.22"></a><var>40.22</var>    (b) The recipient of a credit certificate may assign the certificate to another taxpayer, <br/>
<a id="pl.40.23"></a><var>40.23</var>which is then allowed the credit under this section or section 
         <statute_ref>297I.20, subdivision 3</statute_ref>.  An <br/>
<a id="pl.40.24"></a><var>40.24</var>assignment is not valid unless the assignee notifies the commissioner within 30 days of the <br/>
<a id="pl.40.25"></a><var>40.25</var>date that the assignment is made. The commissioner shall prescribe the forms necessary <br/>
<a id="pl.40.26"></a><var>40.26</var>for notifying the commissioner of the assignment of a credit certificate and for claiming <br/>
<a id="pl.40.27"></a><var>40.27</var>a credit by assignment.<br/>
<a id="pl.40.28"></a><var>40.28</var>    (c) Credits passed through pursuant to subdivision 5 of this section are not an <br/>
<a id="pl.40.29"></a><var>40.29</var>assignment of a credit certificate under this subdivision.<br/>
<a id="pl.40.30"></a><var>40.30</var>    (d) A grant agreement between the office and the recipient of a grant may allow the <br/>
<a id="pl.40.31"></a><var>40.31</var>grant to be issued to another individual or entity.<br/>
<a id="pl.40.32"></a><var>40.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.40.33"></a><var>40.33</var>    Sec. 14. Minnesota Statutes 2010, section 290.0681, subdivision 5, is amended to read:<br/>
<a id="pl.41.1"></a><var>41.1</var>    Subd. 5. <b>Partnerships; multiple owners.</b> Credits granted to a partnership, a limited <br/>
<a id="pl.41.2"></a><var>41.2</var>liability company taxed as a partnership, S corporation, or multiple owners of property <br/>
<a id="pl.41.3"></a><var>41.3</var>are passed through to the partners, members, shareholders, or owners, respectively, pro <br/>
<a id="pl.41.4"></a><var>41.4</var>rata to each partner, member, shareholder, or owner based on their share of the entity's <br/>
<a id="pl.41.5"></a><var>41.5</var>assets or as specially allocated in their organizational documents or any other executed <br/>
<a id="pl.41.6"></a><var>41.6</var>agreement, as of the last day of the taxable year.<br/>
<a id="pl.41.7"></a><var>41.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.15.0"></a><a id="pl.41.8"></a><var>41.8</var>    Sec. 15. Minnesota Statutes 2010, section 290.0681, subdivision 10, is amended to <br/>
<a id="pl.41.9"></a><var>41.9</var>read:<br/>
<a id="pl.41.10"></a><var>41.10</var>    Subd. 10. <b>Sunset.</b> This section expires after fiscal year 2015 2021, except that <br/>
<a id="pl.41.11"></a><var>41.11</var>the office's authority to issue credit certificates under subdivision 4 based on allocation <br/>
<a id="pl.41.12"></a><var>41.12</var>certificates that were issued before fiscal year 2016 2022 remains in effect through 2018 <br/>
<a id="pl.41.13"></a><var>41.13</var>2024, and the reporting requirements in subdivision 9 remain in effect through the year <br/>
<a id="pl.41.14"></a><var>41.14</var>following the year in which all allocation certificates have either been canceled or resulted <br/>
<a id="pl.41.15"></a><var>41.15</var>in issuance of credit certificates, or 2019 2025, whichever is earlier.<br/>
<a id="pl.41.16"></a><var>41.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.16.0"></a><a id="pl.41.17"></a><var>41.17</var>    Sec. 16. <b>[290.0693] VETERANS JOBS TAX CREDIT.</b><br/>
<a id="pl.41.18"></a><var>41.18</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.41.19"></a><var>41.19</var>have the meanings given.<br/>
<a id="pl.41.20"></a><var>41.20</var>(b)(1) "Full-time employee" means an employee as defined in section 290.92, <br/>
<a id="pl.41.21"></a><var>41.21</var>subdivision 1, who meets the following criteria:<br/>
<a id="pl.41.22"></a><var>41.22</var>(i) the employee is paid wages as defined in section 290.92, subdivision 1, for at <br/>
<a id="pl.41.23"></a><var>41.23</var>least 1,820 hours during the 12-month period that starts on the date of hire;<br/>
<a id="pl.41.24"></a><var>41.24</var>(ii) the employee's wages are attributable to Minnesota under section 290.191, <br/>
<a id="pl.41.25"></a><var>41.25</var>subdivision 12;<br/>
<a id="pl.41.26"></a><var>41.26</var>(iii) the employee performs services for the employer in at least 50 weeks during the <br/>
<a id="pl.41.27"></a><var>41.27</var>12-month period that starts on the date of hire; and <br/>
<a id="pl.41.28"></a><var>41.28</var>(iv) the employee's total compensation, including benefits not mandated by law, is at <br/>
<a id="pl.41.29"></a><var>41.29</var>least $25,000 for the 12-month period that starts on the date of hire.<br/>
<a id="pl.41.30"></a><var>41.30</var>(2) "Full-time employee" does not include:<br/>
<a id="pl.41.31"></a><var>41.31</var>(i) any employee who bears any of the relationships described in subparagraphs (A) <br/>
<a id="pl.41.32"></a><var>41.32</var>to (G) of section 152(d)(2) of the Internal Revenue Code to the employer;<br/>
<a id="pl.42.1"></a><var>42.1</var>(ii) if the employer is a corporation, any employee who owns, directly or indirectly, <br/>
<a id="pl.42.2"></a><var>42.2</var>more than 50 percent in value of the outstanding stock of the corporation, or if the <br/>
<a id="pl.42.3"></a><var>42.3</var>employer is an entity other than a corporation, an employee who owns, directly or <br/>
<a id="pl.42.4"></a><var>42.4</var>indirectly, more than 50 percent of the capital and profits interests in the entity, as <br/>
<a id="pl.42.5"></a><var>42.5</var>determined with the application of section 267(c) of the Internal Revenue Code; or<br/>
<a id="pl.42.6"></a><var>42.6</var>(iii) if the employer is an estate or trust, any employee who is a fiduciary of the estate <br/>
<a id="pl.42.7"></a><var>42.7</var>or trust, or is an individual who bears any of the relationships described in subparagraphs <br/>
<a id="pl.42.8"></a><var>42.8</var>(A) to (G) of section 152(d)(2) of the Internal Revenue Code to a grantor, beneficiary, <br/>
<a id="pl.42.9"></a><var>42.9</var>or fiduciary of the estate or trust.<br/>
<a id="pl.42.10"></a><var>42.10</var>(c) "Qualified employer" means an employer that:<br/>
<a id="pl.42.11"></a><var>42.11</var>(1) employed a total of five or more full-time employees on December 31, 2011; and<br/>
<a id="pl.42.12"></a><var>42.12</var>(2) hired one or more qualified full-time employees after March 31, 2012.<br/>
<a id="pl.42.13"></a><var>42.13</var>(d) "Qualified full-time employee" means a full-time employee who:<br/>
<a id="pl.42.14"></a><var>42.14</var>(1) has completed 12 consecutive months of service as a full-time employee for a <br/>
<a id="pl.42.15"></a><var>42.15</var>qualified employer;<br/>
<a id="pl.42.16"></a><var>42.16</var>(2) is a qualified unemployed veteran; and<br/>
<a id="pl.42.17"></a><var>42.17</var>(3) is a resident of Minnesota on the date of hire.<br/>
<a id="pl.42.18"></a><var>42.18</var>(e) "Qualified unemployed veteran" is a person who:<br/>
<a id="pl.42.19"></a><var>42.19</var>(1) was in active military service in a designated area after September 11, 2001, <br/>
<a id="pl.42.20"></a><var>42.20</var>as defined in section 290.0677;<br/>
<a id="pl.42.21"></a><var>42.21</var>(2) was separated from active military service at any time during the five-year period <br/>
<a id="pl.42.22"></a><var>42.22</var>prior to the date of hire;<br/>
<a id="pl.42.23"></a><var>42.23</var>(3) received unemployment compensation under state or federal law for not less than <br/>
<a id="pl.42.24"></a><var>42.24</var>four weeks during the one-year period prior to the date of hire; and<br/>
<a id="pl.42.25"></a><var>42.25</var>(4) was unemployed on the date of hire.<br/>
<a id="pl.42.26"></a><var>42.26</var>(f) "Date of hire" means the day that the qualified full-time employee begins <br/>
<a id="pl.42.27"></a><var>42.27</var>performing services as an employee for the qualified employer.<br/>
<a id="pl.42.28"></a><var>42.28</var>(g) "Construction trades employer" means a person carrying on a trade or business <br/>
<a id="pl.42.29"></a><var>42.29</var>described in industry code numbers 23 through 238990 of the North American Industry <br/>
<a id="pl.42.30"></a><var>42.30</var>Classification System.<br/>
<a id="pl.42.31"></a><var>42.31</var>    Subd. 2. <b>Credit for new full-time employees.</b> (a) A qualified employer who is <br/>
<a id="pl.42.32"></a><var>42.32</var>required to file a return under section 289A.08, subdivision 1, 2, or 3, is allowed a credit <br/>
<a id="pl.42.33"></a><var>42.33</var>against the tax imposed by this chapter for the net increase in qualified full-time employees.<br/>
<a id="pl.42.34"></a><var>42.34</var>(b)(1) For hiring qualified full-time employees after March 30, 2012, but before <br/>
<a id="pl.42.35"></a><var>42.35</var>January 1, 2013, the credit is equal to $3,000 times the net increase in full-time employees. <br/>
<a id="pl.42.36"></a><var>42.36</var>The net increase in full-time employees is the difference between:<br/>
<a id="pl.43.1"></a><var>43.1</var>(i) the total number of full-time employees employed by the employer on December <br/>
<a id="pl.43.2"></a><var>43.2</var>31, 2011; and<br/>
<a id="pl.43.3"></a><var>43.3</var>(ii) the number of full-time employees employed by the employer on December <br/>
<a id="pl.43.4"></a><var>43.4</var>31, 2012.<br/>
<a id="pl.43.5"></a><var>43.5</var>The net increase in full-time employees cannot exceed the number of qualified full-time <br/>
<a id="pl.43.6"></a><var>43.6</var>employees hired after March 31, 2012, but before January 1, 2013.<br/>
<a id="pl.43.7"></a><var>43.7</var>(2) For hiring qualified full-time employees after December 31, 2012, but before <br/>
<a id="pl.43.8"></a><var>43.8</var>July 1, 2013, the credit is equal to $1,500 times the net increase in full-time employees. <br/>
<a id="pl.43.9"></a><var>43.9</var>The net increase in full-time employees is the difference between:<br/>
<a id="pl.43.10"></a><var>43.10</var>(i) the total number of full-time employees employed by the taxpayer on December <br/>
<a id="pl.43.11"></a><var>43.11</var>31, 2011; and<br/>
<a id="pl.43.12"></a><var>43.12</var>(ii) the number of full-time employees employed by the taxpayer on December <br/>
<a id="pl.43.13"></a><var>43.13</var>31, 2013.<br/>
<a id="pl.43.14"></a><var>43.14</var>The net increase in full-time employees cannot exceed the number of qualified full-time <br/>
<a id="pl.43.15"></a><var>43.15</var>employees hired after December 31, 2012, but before July 1, 2013.<br/>
<a id="pl.43.16"></a><var>43.16</var>(c) The credit may be claimed in the taxable year in which the qualified full-time <br/>
<a id="pl.43.17"></a><var>43.17</var>employee completes 12 consecutive months of continuous service as a full-time employee <br/>
<a id="pl.43.18"></a><var>43.18</var>of the qualified employer.<br/>
<a id="pl.43.19"></a><var>43.19</var>(d) The maximum aggregate credits allowed to a qualified employer under this <br/>
<a id="pl.43.20"></a><var>43.20</var>section for all taxable years is $50,000.<br/>
<a id="pl.43.21"></a><var>43.21</var>(e) For members of a unitary business whose income and factors are included on a <br/>
<a id="pl.43.22"></a><var>43.22</var>combined income report under section 289A.08, subdivision 3, the number of full-time <br/>
<a id="pl.43.23"></a><var>43.23</var>employees and the maximum allowable credit are not determined at the individual <br/>
<a id="pl.43.24"></a><var>43.24</var>member level but are instead determined at the group level.<br/>
<a id="pl.43.25"></a><var>43.25</var>    Subd. 3. <b>Allocation of credits.</b> (a) By July 1, 2012, the commissioner shall develop <br/>
<a id="pl.43.26"></a><var>43.26</var>an Internet application that allows employers to apply for tentative credits. The application <br/>
<a id="pl.43.27"></a><var>43.27</var>must include the employer's name, tax identification number, and North American Industry <br/>
<a id="pl.43.28"></a><var>43.28</var>Classification System industry code, and the name and date of hire of the employee.<br/>
<a id="pl.43.29"></a><var>43.29</var>(b) The credit is available only to employers who apply for a tentative credit using <br/>
<a id="pl.43.30"></a><var>43.30</var>the application in paragraph (a) and who receive notice that their application has been <br/>
<a id="pl.43.31"></a><var>43.31</var>approved for a tentative credit.<br/>
<a id="pl.43.32"></a><var>43.32</var>(c) Employers may apply for a tentative credit no earlier than the date of hire of <br/>
<a id="pl.43.33"></a><var>43.33</var>each qualified full-time employee. Any employer may file more than one tentative credit <br/>
<a id="pl.43.34"></a><var>43.34</var>application, but no employer may apply for tentative credits for more than a total of 16 <br/>
<a id="pl.43.35"></a><var>43.35</var>employees hired in 2012 or 33 employees hired in 2013.<br/>
<a id="pl.44.1"></a><var>44.1</var>(d) The commissioner shall approve applications seeking tentative credits for the <br/>
<a id="pl.44.2"></a><var>44.2</var>first 2,500 full-time employees based on the order in which the applications are received.<br/>
<a id="pl.44.3"></a><var>44.3</var>(e) The commissioner must promptly notify employers if they are eligible for a <br/>
<a id="pl.44.4"></a><var>44.4</var>tentative credit. The notice must state that the employer is eligible for a credit only after <br/>
<a id="pl.44.5"></a><var>44.5</var>the employee named in the application has worked for 12 consecutive months and all other <br/>
<a id="pl.44.6"></a><var>44.6</var>conditions of eligibility are met.<br/>
<a id="pl.44.7"></a><var>44.7</var>(f) The commissioner shall promptly publish public notice when all 2,500 tentative <br/>
<a id="pl.44.8"></a><var>44.8</var>credits have been applied for.<br/>
<a id="pl.44.9"></a><var>44.9</var>    Subd. 4. <b>Tentative credits for construction trades employers.</b> (a) Any <br/>
<a id="pl.44.10"></a><var>44.10</var>construction trades employer may apply for a tentative credit.<br/>
<a id="pl.44.11"></a><var>44.11</var>(b) To remain eligible for a credit, a construction trades employer who has received <br/>
<a id="pl.44.12"></a><var>44.12</var>a tentative credit must renew the tentative credit by filing an application with the <br/>
<a id="pl.44.13"></a><var>44.13</var>commissioner no earlier than 180 days after date of hire and no more than 210 days after <br/>
<a id="pl.44.14"></a><var>44.14</var>date of hire. The renewal notice must state that the employee for whom the tentative credit <br/>
<a id="pl.44.15"></a><var>44.15</var>was originally granted is still an employee and that the employer reasonably believes that <br/>
<a id="pl.44.16"></a><var>44.16</var>all qualifications of eligibility for a credit will be met.<br/>
<a id="pl.44.17"></a><var>44.17</var>(c) Any tentative credit issued to a construction trades employer that is not renewed <br/>
<a id="pl.44.18"></a><var>44.18</var>within the time required for renewal is canceled. Any canceled tentative credits are <br/>
<a id="pl.44.19"></a><var>44.19</var>available to be reissued by the commissioner to employers under subdivision 3.<br/>
<a id="pl.44.20"></a><var>44.20</var>    Subd. 5. <b>Flow-through entities.</b> Credits granted to a partnership, limited liability <br/>
<a id="pl.44.21"></a><var>44.21</var>company taxed as a partnership, S corporation, or multiple owners of a business are passed <br/>
<a id="pl.44.22"></a><var>44.22</var>through to the partners, members, shareholders, or owners, respectively, pro rata to each <br/>
<a id="pl.44.23"></a><var>44.23</var>partner, member, shareholder, or owner based on their share of the entity's assets or as <br/>
<a id="pl.44.24"></a><var>44.24</var>specially allocated in their organizational documents, as of the last day of the taxable year.<br/>
<a id="pl.44.25"></a><var>44.25</var>    Subd. 6. <b>Refundable.</b> If the amount of the credit allowed under this section exceeds <br/>
<a id="pl.44.26"></a><var>44.26</var>the liability for tax under this chapter, the commissioner shall refund the excess to the <br/>
<a id="pl.44.27"></a><var>44.27</var>taxpayer.<br/>
<a id="pl.44.28"></a><var>44.28</var>    Subd. 7. <b>Appropriation.</b> An amount sufficient to pay the refunds authorized by this <br/>
<a id="pl.44.29"></a><var>44.29</var>section is appropriated to the commissioner from the general fund.<br/>
<a id="pl.44.30"></a><var>44.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.17.0"></a><a id="pl.44.31"></a><var>44.31</var>    Sec. 17. Minnesota Statutes 2011 Supplement, section 290A.03, subdivision 15, <br/>
<a id="pl.44.32"></a><var>44.32</var>is amended to read:<br/>
<a id="pl.44.33"></a><var>44.33</var>    Subd. 15. <b>Internal Revenue Code.</b>  "Internal Revenue Code" means the Internal <br/>
<a id="pl.44.34"></a><var>44.34</var>Revenue Code of 1986, as amended through April 14, 2011 February 14, 2012.<br/>
<a id="pl.45.1"></a><var>45.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.18.0"></a><a id="pl.45.2"></a><var>45.2</var>    Sec. 18. Minnesota Statutes 2011 Supplement, section 291.005, subdivision 1, is <br/>
<a id="pl.45.3"></a><var>45.3</var>amended to read:<br/>
<a id="pl.45.4"></a><var>45.4</var>    Subdivision 1. <b>Scope.</b> Unless the context otherwise clearly requires, the following <br/>
<a id="pl.45.5"></a><var>45.5</var>terms used in this chapter shall have the following meanings:<br/>
<a id="pl.45.6"></a><var>45.6</var>    (1) "Commissioner" means the commissioner of revenue or any person to whom the <br/>
<a id="pl.45.7"></a><var>45.7</var>commissioner has delegated functions under this chapter.<br/>
<a id="pl.45.8"></a><var>45.8</var>    (2) "Federal gross estate" means the gross estate of a decedent as required to be <br/>
<a id="pl.45.9"></a><var>45.9</var>valued and otherwise determined for federal estate tax purposes under the Internal <br/>
<a id="pl.45.10"></a><var>45.10</var>Revenue Code.<br/>
<a id="pl.45.11"></a><var>45.11</var>    (3) "Internal Revenue Code" means the United States Internal Revenue Code of <br/>
<a id="pl.45.12"></a><var>45.12</var>1986, as amended through April 14, 2011 February 14, 2012, but without regard to the <br/>
<a id="pl.45.13"></a><var>45.13</var>provisions of sections 501 and 901 of Public Law 107-16, as amended by Public Law <br/>
<a id="pl.45.14"></a><var>45.14</var>111-312, and section 301(c) of Public Law 111-312.<br/>
<a id="pl.45.15"></a><var>45.15</var>    (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as <br/>
<a id="pl.45.16"></a><var>45.16</var>defined by section 2011(b)(3) of the Internal Revenue Code, plus<br/>
<a id="pl.45.17"></a><var>45.17</var>(i) the amount of deduction for state death taxes allowed under section 2058 of <br/>
<a id="pl.45.18"></a><var>45.18</var>the Internal Revenue Code; less<br/>
<a id="pl.45.19"></a><var>45.19</var>(ii)(A) the value of qualified small business property under section 
         <statute_ref>291.03, <br/>
<a id="pl.45.20"></a><var>45.20</var>subdivision 9
         </statute_ref>, and the value of qualified farm property under section 
         <statute_ref>291.03, subdivision <br/>
<a id="pl.45.21"></a><var>45.21</var>10
         </statute_ref>, or (B) $4,000,000, whichever is less.<br/>
<a id="pl.45.22"></a><var>45.22</var>    (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a) <br/>
<a id="pl.45.23"></a><var>45.23</var>excluding therefrom any property included therein which has its situs outside Minnesota, <br/>
<a id="pl.45.24"></a><var>45.24</var>and (b) including therein any property omitted from the federal gross estate which is <br/>
<a id="pl.45.25"></a><var>45.25</var>includable therein, has its situs in Minnesota, and was not disclosed to federal taxing <br/>
<a id="pl.45.26"></a><var>45.26</var>authorities.<br/>
<a id="pl.45.27"></a><var>45.27</var>    (6) "Nonresident decedent" means an individual whose domicile at the time of <br/>
<a id="pl.45.28"></a><var>45.28</var>death was not in Minnesota.<br/>
<a id="pl.45.29"></a><var>45.29</var>    (7) "Personal representative" means the executor, administrator or other person <br/>
<a id="pl.45.30"></a><var>45.30</var>appointed by the court to administer and dispose of the property of the decedent. If there <br/>
<a id="pl.45.31"></a><var>45.31</var>is no executor, administrator or other person appointed, qualified, and acting within this <br/>
<a id="pl.45.32"></a><var>45.32</var>state, then any person in actual or constructive possession of any property having a situs in <br/>
<a id="pl.45.33"></a><var>45.33</var>this state which is included in the federal gross estate of the decedent shall be deemed <br/>
<a id="pl.45.34"></a><var>45.34</var>to be a personal representative to the extent of the property and the Minnesota estate tax <br/>
<a id="pl.45.35"></a><var>45.35</var>due with respect to the property.<br/>
<a id="pl.46.1"></a><var>46.1</var>    (8) "Resident decedent" means an individual whose domicile at the time of death <br/>
<a id="pl.46.2"></a><var>46.2</var>was in Minnesota.<br/>
<a id="pl.46.3"></a><var>46.3</var>    (9) "Situs of property" means, with respect to real property, the state or country in <br/>
<a id="pl.46.4"></a><var>46.4</var>which it is located; with respect to tangible personal property, the state or country in which <br/>
<a id="pl.46.5"></a><var>46.5</var>it was normally kept or located at the time of the decedent's death; and with respect to <br/>
<a id="pl.46.6"></a><var>46.6</var>intangible personal property, the state or country in which the decedent was domiciled <br/>
<a id="pl.46.7"></a><var>46.7</var>at death.<br/>
<a id="pl.46.8"></a><var>46.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.19.0"></a><a id="pl.46.9"></a><var>46.9</var>    Sec. 19. Laws 2010, chapter 216, section 11, the effective date, is amended to read:<br/>
<a id="pl.46.10"></a><var>46.10</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning <br/>
<a id="pl.46.11"></a><var>46.11</var>after December 31, 2009, for certified historic structures for which qualified costs of <br/>
<a id="pl.46.12"></a><var>46.12</var>rehabilitation are first paid under construction contracts entered into after May 1, 2010 <br/>
<a id="pl.46.13"></a><var>46.13</var>rehabilitation expenditures are first paid by the developer or taxpayer after May 1, 2010, <br/>
<a id="pl.46.14"></a><var>46.14</var>for rehabilitation that occurs after May 1, 2010, provided that the application under <br/>
<a id="pl.46.15"></a><var>46.15</var>subdivision 3 is submitted before the project is placed in service.<br/>
<a id="pl.46.16"></a><var>46.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.46.17"></a><var>46.17</var>and applies retroactively for taxable years beginning after December 31, 2009, and for <br/>
<a id="pl.46.18"></a><var>46.18</var>certified historic structures placed in service after May 1, 2010, but the office may not <br/>
<a id="pl.46.19"></a><var>46.19</var>issue certificates allowed under the change to this section until July 1, 2013.<br/>
<br/>
<a id="bill.2.20.0"></a><a id="pl.46.20"></a><var>46.20</var>    Sec. 20. <b>AMENDED RETURNS; CERTAIN IRA ROLLOVERS.</b><br/>
<a id="pl.46.21"></a><var>46.21</var>An individual who excludes an amount from net income in a prior taxable year <br/>
<a id="pl.46.22"></a><var>46.22</var>through rollover of an airline payment amount to a traditional IRA, as authorized under <br/>
<a id="pl.46.23"></a><var>46.23</var>Public Law 112-95, section 1106, may file an amended individual income tax return and <br/>
<a id="pl.46.24"></a><var>46.24</var>claim for refund of state taxes as provided under Minnesota Statutes, section 289A.40, <br/>
<a id="pl.46.25"></a><var>46.25</var>subdivision 1, or, if later, by April 15, 2013.<br/>
<a id="pl.46.26"></a><var>46.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.21.0"></a><a id="pl.46.27"></a><var>46.27</var>    Sec. 21. <b> REPEALER.</b><br/>
<a id="pl.46.28"></a><var>46.28</var>Minnesota Statutes 2010, section 290.92, subdivision 31, is repealed.<br/>
<a id="pl.46.29"></a><var>46.29</var><b>EFFECTIVE DATE.</b>This section is effective for payments made after June 30, <br/>
<a id="pl.46.30"></a><var>46.30</var>2012.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.47.3"></a><var>47.3</var>    Section 1. Minnesota Statutes 2010, section 289A.20, subdivision 4, is amended to <br/>
<a id="pl.47.4"></a><var>47.4</var>read:<br/>
<a id="pl.47.5"></a><var>47.5</var>    Subd. 4. <b>Sales and use tax.</b> (a) The taxes imposed by chapter 297A are due and <br/>
<a id="pl.47.6"></a><var>47.6</var>payable to the commissioner monthly on or before the 20th day of the month following <br/>
<a id="pl.47.7"></a><var>47.7</var>the month in which the taxable event occurred, or following another reporting period <br/>
<a id="pl.47.8"></a><var>47.8</var>as the commissioner prescribes or as allowed under section 
         <statute_ref>289A.18, subdivision 4</statute_ref>, <br/>
<a id="pl.47.9"></a><var>47.9</var>paragraph (f) or (g), except that:<br/>
<a id="pl.47.10"></a><var>47.10</var>(1) use taxes due on an annual use tax return as provided under section 
         <statute_ref>289A.11, <br/>
<a id="pl.47.11"></a><var>47.11</var>subdivision 1
         </statute_ref>, are payable by April 15 following the close of the calendar year; and.<br/>
<a id="pl.47.12"></a><var>47.12</var>(2) except as provided in paragraph (f), for a vendor having a liability of $120,000 <br/>
<a id="pl.47.13"></a><var>47.13</var>or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes <br/>
<a id="pl.47.14"></a><var>47.14</var>imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the <br/>
<a id="pl.47.15"></a><var>47.15</var>commissioner monthly in the following manner:<br/>
<a id="pl.47.16"></a><var>47.16</var>(i) On or before the 14th day of the month following the month in which the taxable <br/>
<a id="pl.47.17"></a><var>47.17</var>event occurred, the vendor must remit to the commissioner 90 percent of the estimated <br/>
<a id="pl.47.18"></a><var>47.18</var>liability for the month in which the taxable event occurred.<br/>
<a id="pl.47.19"></a><var>47.19</var>(ii) On or before the 20th day of the month in which the taxable event occurs, the <br/>
<a id="pl.47.20"></a><var>47.20</var>vendor must remit to the commissioner a prepayment for the month in which the taxable <br/>
<a id="pl.47.21"></a><var>47.21</var>event occurs equal to 67 percent of the liability for the previous month.<br/>
<a id="pl.47.22"></a><var>47.22</var>(iii) On or before the 20th day of the month following the month in which the taxable <br/>
<a id="pl.47.23"></a><var>47.23</var>event occurred, the vendor must pay any additional amount of tax not previously remitted <br/>
<a id="pl.47.24"></a><var>47.24</var>under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than <br/>
<a id="pl.47.25"></a><var>47.25</var>the vendor's liability for the month in which the taxable event occurred, the vendor may <br/>
<a id="pl.47.26"></a><var>47.26</var>take a credit against the next month's liability in a manner prescribed by the commissioner.<br/>
<a id="pl.47.27"></a><var>47.27</var>(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to <br/>
<a id="pl.47.28"></a><var>47.28</var>continue to make payments in the same manner, as long as the vendor continues having a <br/>
<a id="pl.47.29"></a><var>47.29</var>liability of $120,000 or more during the most recent fiscal year ending June 30.<br/>
<a id="pl.47.30"></a><var>47.30</var>(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required <br/>
<a id="pl.47.31"></a><var>47.31</var>payment in the first month that the vendor is required to make a payment under either item <br/>
<a id="pl.47.32"></a><var>47.32</var>(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make <br/>
<a id="pl.47.33"></a><var>47.33</var>subsequent monthly payments in the manner provided in item (ii).<br/>
<a id="pl.47.34"></a><var>47.34</var>(vi) For vendors making an accelerated payment under item (ii), for the first month <br/>
<a id="pl.47.35"></a><var>47.35</var>that the vendor is required to make the accelerated payment, on the 20th of that month, the <br/>
<a id="pl.48.1"></a><var>48.1</var>vendor will pay 100 percent of the liability for the previous month and a prepayment for <br/>
<a id="pl.48.2"></a><var>48.2</var>the first month equal to 67 percent of the liability for the previous month.<br/>
<a id="pl.48.3"></a><var>48.3</var>    (b) Notwithstanding paragraph (a), A vendor having a liability of $120,000 or more <br/>
<a id="pl.48.4"></a><var>48.4</var>during a fiscal year ending June 30 must remit the June liability for the next year in the <br/>
<a id="pl.48.5"></a><var>48.5</var>following manner:<br/>
<a id="pl.48.6"></a><var>48.6</var>    (1) Two business days before June 30 of the year, the vendor must remit 90 percent <br/>
<a id="pl.48.7"></a><var>48.7</var>of the estimated June liability to the commissioner.<br/>
<a id="pl.48.8"></a><var>48.8</var>    (2) On or before August 20 of the year, the vendor must pay any additional amount <br/>
<a id="pl.48.9"></a><var>48.9</var>of tax not remitted in June.<br/>
<a id="pl.48.10"></a><var>48.10</var>    (c) A vendor having a liability of:<br/>
<a id="pl.48.11"></a><var>48.11</var>    (1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30, <br/>
<a id="pl.48.12"></a><var>48.12</var>2009, and fiscal years thereafter, must remit by electronic means all liabilities on returns <br/>
<a id="pl.48.13"></a><var>48.13</var>due for periods beginning in the subsequent calendar year on or before the 20th day of <br/>
<a id="pl.48.14"></a><var>48.14</var>the month following the month in which the taxable event occurred, or on or before the <br/>
<a id="pl.48.15"></a><var>48.15</var>20th day of the month following the month in which the sale is reported under section <br/>
<statute_ref><a id="pl.48.16"></a><var>48.16</var>289A.18, subdivision 4
         </statute_ref>; or<br/>
<a id="pl.48.17"></a><var>48.17</var>(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years <br/>
<a id="pl.48.18"></a><var>48.18</var>thereafter, must remit by electronic means all liabilities in the manner provided in <br/>
<a id="pl.48.19"></a><var>48.19</var>paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar <br/>
<a id="pl.48.20"></a><var>48.20</var>year, except for 90 percent of the estimated June liability, which is due two business days <br/>
<a id="pl.48.21"></a><var>48.21</var>before June 30. The remaining amount of the June liability is due on August 20.<br/>
<a id="pl.48.22"></a><var>48.22</var>(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's <br/>
<a id="pl.48.23"></a><var>48.23</var>religious beliefs from paying electronically shall be allowed to remit the payment by mail. <br/>
<a id="pl.48.24"></a><var>48.24</var>The filer must notify the commissioner of revenue of the intent to pay by mail before <br/>
<a id="pl.48.25"></a><var>48.25</var>doing so on a form prescribed by the commissioner. No extra fee may be charged to a <br/>
<a id="pl.48.26"></a><var>48.26</var>person making payment by mail under this paragraph. The payment must be postmarked <br/>
<a id="pl.48.27"></a><var>48.27</var>at least two business days before the due date for making the payment in order to be <br/>
<a id="pl.48.28"></a><var>48.28</var>considered paid on a timely basis.<br/>
<a id="pl.48.29"></a><var>48.29</var>(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed <br/>
<a id="pl.48.30"></a><var>48.30</var>under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the <br/>
<a id="pl.48.31"></a><var>48.31</var>chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and <br/>
<a id="pl.48.32"></a><var>48.32</var>paid with the chapter 297A taxes, then the payment of all the liabilities on the return must <br/>
<a id="pl.48.33"></a><var>48.33</var>be accelerated as provided in this subdivision.<br/>
<a id="pl.48.34"></a><var>48.34</var>(f) At the start of the first calendar quarter at least 90 days after the cash flow <br/>
<a id="pl.48.35"></a><var>48.35</var>account established in section 
<statute_ref>16A.152, subdivision 1</statute_ref>, and the budget reserve account <br/>
<a id="pl.48.36"></a><var>48.36</var>established in section 
<statute_ref>16A.152, subdivision 1a</statute_ref>, reach the amounts listed in section <br/>
<a id="pl.49.1"></a><var>49.1</var><statute_ref>16A.152, subdivision 2</statute_ref>, paragraph (a), the remittance of the accelerated payments required <br/>
<a id="pl.49.2"></a><var>49.2</var>under paragraph (a), clause (2), must be suspended. The commissioner of management <br/>
<a id="pl.49.3"></a><var>49.3</var>and budget shall notify the commissioner of revenue when the accounts have reached <br/>
<a id="pl.49.4"></a><var>49.4</var>the required amounts. Beginning with the suspension of paragraph (a), clause (2), for a <br/>
<a id="pl.49.5"></a><var>49.5</var>vendor with a liability of $120,000 or more during a fiscal year ending June 30, 2009, <br/>
<a id="pl.49.6"></a><var>49.6</var>and fiscal years thereafter, the taxes imposed by chapter 297A are due and payable to the <br/>
<a id="pl.49.7"></a><var>49.7</var>commissioner on the 20th day of the month following the month in which the taxable <br/>
<a id="pl.49.8"></a><var>49.8</var>event occurred. Payments of tax liabilities for taxable events occurring in June under <br/>
<a id="pl.49.9"></a><var>49.9</var>paragraph (b) are not changed.<br/>
<a id="pl.49.10"></a><var>49.10</var><b>EFFECTIVE DATE.</b>This section is effective for taxes due and payable after <br/>
<a id="pl.49.11"></a><var>49.11</var>June 30, 2012.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.49.12"></a><var>49.12</var>    Sec. 2. Minnesota Statutes 2011 Supplement, section 295.53, subdivision 1, is <br/>
<a id="pl.49.13"></a><var>49.13</var>amended to read:<br/>
<a id="pl.49.14"></a><var>49.14</var>    Subdivision 1. <b>Exemptions.</b> (a) The following payments are excluded from the <br/>
<a id="pl.49.15"></a><var>49.15</var>gross revenues subject to the hospital, surgical center, or health care provider taxes under <br/>
<a id="pl.49.16"></a><var>49.16</var>sections 
         <statute_ref>295.50</statute_ref> to 
         <statute_ref>295.59</statute_ref>:<br/>
<a id="pl.49.17"></a><var>49.17</var>(1) payments received for services provided under the Medicare program, including <br/>
<a id="pl.49.18"></a><var>49.18</var>payments received from the government, and organizations governed by sections 1833 <br/>
<a id="pl.49.19"></a><var>49.19</var>and 1876 of title XVIII of the federal Social Security Act, United States Code, title 42, <br/>
<a id="pl.49.20"></a><var>49.20</var>section 1395, and enrollee deductibles, coinsurance, and co-payments, whether paid by the <br/>
<a id="pl.49.21"></a><var>49.21</var>Medicare enrollee or by a Medicare supplemental coverage as defined in section 
         <statute_ref>62A.011, <br/>
<a id="pl.49.22"></a><var>49.22</var>subdivision 3
         </statute_ref>, clause (10), or by Medicaid payments under title XIX of the federal Social <br/>
<a id="pl.49.23"></a><var>49.23</var>Security Act. Payments for services not covered by Medicare are taxable;<br/>
<a id="pl.49.24"></a><var>49.24</var>(2) payments received for home health care services;<br/>
<a id="pl.49.25"></a><var>49.25</var>(3) payments received from hospitals or surgical centers for goods and services on <br/>
<a id="pl.49.26"></a><var>49.26</var>which liability for tax is imposed under section 
         <statute_ref>295.52</statute_ref> or the source of funds for the <br/>
<a id="pl.49.27"></a><var>49.27</var>payment is exempt under clause (1), (7), (10), or (14);<br/>
<a id="pl.49.28"></a><var>49.28</var>(4) payments received from health care providers for goods and services on which <br/>
<a id="pl.49.29"></a><var>49.29</var>liability for tax is imposed under this chapter or the source of funds for the payment is <br/>
<a id="pl.49.30"></a><var>49.30</var>exempt under clause (1), (7), (10), or (14);<br/>
<a id="pl.49.31"></a><var>49.31</var>(5) amounts paid for legend drugs, other than nutritional products and blood and <br/>
<a id="pl.49.32"></a><var>49.32</var>blood components, to a wholesale drug distributor who is subject to tax under section <br/>
<statute_ref><a id="pl.49.33"></a><var>49.33</var>295.52, subdivision 3
         </statute_ref>, reduced by reimbursements received for legend drugs otherwise <br/>
<a id="pl.49.34"></a><var>49.34</var>exempt under this chapter;<br/>
<a id="pl.50.1"></a><var>50.1</var>(6) payments received by a health care provider or the wholly owned subsidiary of a <br/>
<a id="pl.50.2"></a><var>50.2</var>health care provider for care provided outside Minnesota;<br/>
<a id="pl.50.3"></a><var>50.3</var>(7) payments received from the chemical dependency fund under chapter 254B;<br/>
<a id="pl.50.4"></a><var>50.4</var>(8) payments received in the nature of charitable donations that are not designated <br/>
<a id="pl.50.5"></a><var>50.5</var>for providing patient services to a specific individual or group;<br/>
<a id="pl.50.6"></a><var>50.6</var>(9) payments received for providing patient services incurred through a formal <br/>
<a id="pl.50.7"></a><var>50.7</var>program of health care research conducted in conformity with federal regulations <br/>
<a id="pl.50.8"></a><var>50.8</var>governing research on human subjects. Payments received from patients or from other <br/>
<a id="pl.50.9"></a><var>50.9</var>persons paying on behalf of the patients are subject to tax;<br/>
<a id="pl.50.10"></a><var>50.10</var>(10) payments received from any governmental agency for services benefiting the <br/>
<a id="pl.50.11"></a><var>50.11</var>public, not including payments made by the government in its capacity as an employer <br/>
<a id="pl.50.12"></a><var>50.12</var>or insurer or payments made by the government for services provided under general <br/>
<a id="pl.50.13"></a><var>50.13</var>assistance medical care, the MinnesotaCare program, or the medical assistance program <br/>
<a id="pl.50.14"></a><var>50.14</var>governed by title XIX of the federal Social Security Act, United States Code, title 42, <br/>
<a id="pl.50.15"></a><var>50.15</var>sections 1396 to 1396v;<br/>
<a id="pl.50.16"></a><var>50.16</var>(11) government payments received by the commissioner of human services for <br/>
<a id="pl.50.17"></a><var>50.17</var>state-operated services;<br/>
<a id="pl.50.18"></a><var>50.18</var>(12) payments received by a health care provider for hearing aids and related <br/>
<a id="pl.50.19"></a><var>50.19</var>equipment or prescription eyewear delivered outside of Minnesota;<br/>
<a id="pl.50.20"></a><var>50.20</var>(13) payments received by an educational institution from student tuition, student <br/>
<a id="pl.50.21"></a><var>50.21</var>activity fees, health care service fees, government appropriations, donations, or grants, <br/>
<a id="pl.50.22"></a><var>50.22</var>and for services identified in and provided under an individualized education program <br/>
<a id="pl.50.23"></a><var>50.23</var>as defined in section 
         <statute_ref>256B.0625</statute_ref> or Code of Federal Regulations, chapter 34, section <br/>
<a id="pl.50.24"></a><var>50.24</var>300.340(a). Fee for service payments and payments for extended coverage are taxable;<br/>
<a id="pl.50.25"></a><var>50.25</var>(14) payments received under the federal Employees Health Benefits Act, United <br/>
<a id="pl.50.26"></a><var>50.26</var>States Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of <br/>
<a id="pl.50.27"></a><var>50.27</var>1990. Enrollee deductibles, coinsurance, and co-payments are subject to tax; and<br/>
<a id="pl.50.28"></a><var>50.28</var>(15) payments received under the federal Tricare program, Code of Federal <br/>
<a id="pl.50.29"></a><var>50.29</var>Regulations, title 32, section 199.17(a)(7). Enrollee deductibles, coinsurance, and <br/>
<a id="pl.50.30"></a><var>50.30</var>co-payments are subject to tax.; and<br/>
<a id="pl.50.31"></a><var>50.31</var>(16) payments for laboratory services to examine and report results for a biological <br/>
<a id="pl.50.32"></a><var>50.32</var>specimen that is collected outside the state. The entity claiming the exemption is required <br/>
<a id="pl.50.33"></a><var>50.33</var>to keep adequate records demonstrating that the specimen was collected outside the state, <br/>
<a id="pl.50.34"></a><var>50.34</var>so that the commissioner can ensure that the correct amount of tax is paid.<br/>
<a id="pl.51.1"></a><var>51.1</var>(b) Payments received by wholesale drug distributors for legend drugs sold directly <br/>
<a id="pl.51.2"></a><var>51.2</var>to veterinarians or veterinary bulk purchasing organizations are excluded from the gross <br/>
<a id="pl.51.3"></a><var>51.3</var>revenues subject to the wholesale drug distributor tax under sections 
         <statute_ref>295.50</statute_ref> to 
         <statute_ref>295.59</statute_ref>.<br/>
<a id="pl.51.4"></a><var>51.4</var><b>EFFECTIVE DATE.</b>This section is effective for gross revenues received from <br/>
<a id="pl.51.5"></a><var>51.5</var>laboratory services provided on or after July 1, 2013.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.51.6"></a><var>51.6</var>    Sec. 3. Minnesota Statutes 2010, section 297A.61, subdivision 4, is amended to read:<br/>
<a id="pl.51.7"></a><var>51.7</var>    Subd. 4. <b>Retail sale.</b> (a) A "retail sale" means any sale, lease, or rental for any <br/>
<a id="pl.51.8"></a><var>51.8</var>purpose, other than resale, sublease, or subrent of items by the purchaser in the normal <br/>
<a id="pl.51.9"></a><var>51.9</var>course of business as defined in subdivision 21.<br/>
<a id="pl.51.10"></a><var>51.10</var>    (b) A sale of property used by the owner only by leasing it to others or by holding it <br/>
<a id="pl.51.11"></a><var>51.11</var>in an effort to lease it, and put to no use by the owner other than resale after the lease or <br/>
<a id="pl.51.12"></a><var>51.12</var>effort to lease, is a sale of property for resale.<br/>
<a id="pl.51.13"></a><var>51.13</var>    (c) A sale of master computer software that is purchased and used to make copies for <br/>
<a id="pl.51.14"></a><var>51.14</var>sale or lease is a sale of property for resale.<br/>
<a id="pl.51.15"></a><var>51.15</var>    (d) A sale of building materials, supplies, and equipment to owners, contractors, <br/>
<a id="pl.51.16"></a><var>51.16</var>subcontractors, or builders for the erection of buildings or the alteration, repair, or <br/>
<a id="pl.51.17"></a><var>51.17</var>improvement of real property is a retail sale in whatever quantity sold, whether the sale is <br/>
<a id="pl.51.18"></a><var>51.18</var>for purposes of resale in the form of real property or otherwise.<br/>
<a id="pl.51.19"></a><var>51.19</var>    (e) A sale of carpeting, linoleum, or similar floor covering to a person who provides <br/>
<a id="pl.51.20"></a><var>51.20</var>for installation of the floor covering is a retail sale and not a sale for resale since a sale <br/>
<a id="pl.51.21"></a><var>51.21</var>of floor covering which includes installation is a contract for the improvement of real <br/>
<a id="pl.51.22"></a><var>51.22</var>property.<br/>
<a id="pl.51.23"></a><var>51.23</var>    (f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides <br/>
<a id="pl.51.24"></a><var>51.24</var>for installation of the items is a retail sale and not a sale for resale since a sale of <br/>
<a id="pl.51.25"></a><var>51.25</var>shrubbery, plants, sod, trees, and similar items that includes installation is a contract for <br/>
<a id="pl.51.26"></a><var>51.26</var>the improvement of real property.<br/>
<a id="pl.51.27"></a><var>51.27</var>    (g) A sale of tangible personal property that is awarded as prizes is a retail sale and <br/>
<a id="pl.51.28"></a><var>51.28</var>is not considered a sale of property for resale.<br/>
<a id="pl.51.29"></a><var>51.29</var>    (h) A sale of tangible personal property utilized or employed in the furnishing or <br/>
<a id="pl.51.30"></a><var>51.30</var>providing of services under subdivision 3, paragraph (g), clause (1), including, but not <br/>
<a id="pl.51.31"></a><var>51.31</var>limited to, property given as promotional items, is a retail sale and is not considered a <br/>
<a id="pl.51.32"></a><var>51.32</var>sale of property for resale.<br/>
<a id="pl.51.33"></a><var>51.33</var>    (i) A sale of tangible personal property used in conducting lawful gambling under <br/>
<a id="pl.51.34"></a><var>51.34</var>chapter 349 or the State Lottery under chapter 349A, including, but not limited to, <br/>
<a id="pl.52.1"></a><var>52.1</var>property given as promotional items, is a retail sale and is not considered a sale of <br/>
<a id="pl.52.2"></a><var>52.2</var>property for resale.<br/>
<a id="pl.52.3"></a><var>52.3</var>    (j) A sale of machines, equipment, or devices that are used to furnish, provide, or <br/>
<a id="pl.52.4"></a><var>52.4</var>dispense goods or services, including, but not limited to, coin-operated devices, is a retail <br/>
<a id="pl.52.5"></a><var>52.5</var>sale and is not considered a sale of property for resale.<br/>
<a id="pl.52.6"></a><var>52.6</var>    (k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease <br/>
<a id="pl.52.7"></a><var>52.7</var>payment becomes due under the terms of the agreement or the trade practices of the lessor <br/>
<a id="pl.52.8"></a><var>52.8</var>or; (2) in the case of a lease of a motor vehicle, as defined in section 
         <statute_ref>297B.01, subdivision <br/>
<a id="pl.52.9"></a><var>52.9</var>11
         </statute_ref>, but excluding vehicles with a manufacturer's gross vehicle weight rating greater than <br/>
<a id="pl.52.10"></a><var>52.10</var>10,000 pounds and rentals of vehicles for not more than 28 days, at the time the lease is <br/>
<a id="pl.52.11"></a><var>52.11</var>executed; or (3) for rent-to-own or lease-to-own used vehicles where the lessee may <br/>
<a id="pl.52.12"></a><var>52.12</var>purchase or return the vehicle at any time without penalty, at the time each payment is <br/>
<a id="pl.52.13"></a><var>52.13</var>made under the terms of the agreement.<br/>
<a id="pl.52.14"></a><var>52.14</var>    (l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of <br/>
<a id="pl.52.15"></a><var>52.15</var>title or possession of the tangible personal property.<br/>
<a id="pl.52.16"></a><var>52.16</var>    (m) A sale of a bundled transaction in which one or more of the products included <br/>
<a id="pl.52.17"></a><var>52.17</var>in the bundle is a taxable product is a retail sale, except that if one of the products <br/>
<a id="pl.52.18"></a><var>52.18</var>is a telecommunication service, ancillary service, Internet access, or audio or video <br/>
<a id="pl.52.19"></a><var>52.19</var>programming service, and the seller has maintained books and records identifying through <br/>
<a id="pl.52.20"></a><var>52.20</var>reasonable and verifiable standards the portions of the price that are attributable to the <br/>
<a id="pl.52.21"></a><var>52.21</var>distinct and separately identifiable products, then the products are not considered part of a <br/>
<a id="pl.52.22"></a><var>52.22</var>bundled transaction. For purposes of this paragraph:<br/>
<a id="pl.52.23"></a><var>52.23</var>    (1) the books and records maintained by the seller must be maintained in the regular <br/>
<a id="pl.52.24"></a><var>52.24</var>course of business, and do not include books and records created and maintained by the <br/>
<a id="pl.52.25"></a><var>52.25</var>seller primarily for tax purposes;<br/>
<a id="pl.52.26"></a><var>52.26</var>    (2) books and records maintained in the regular course of business include, but are <br/>
<a id="pl.52.27"></a><var>52.27</var>not limited to, financial statements, general ledgers, invoicing and billing systems and <br/>
<a id="pl.52.28"></a><var>52.28</var>reports, and reports for regulatory tariffs and other regulatory matters; and<br/>
<a id="pl.52.29"></a><var>52.29</var>    (3) books and records are maintained primarily for tax purposes when the books <br/>
<a id="pl.52.30"></a><var>52.30</var>and records identify taxable and nontaxable portions of the price, but the seller maintains <br/>
<a id="pl.52.31"></a><var>52.31</var>other books and records that identify different prices attributable to the distinct products <br/>
<a id="pl.52.32"></a><var>52.32</var>included in the same bundled transaction.<br/>
<a id="pl.52.33"></a><var>52.33</var><b>EFFECTIVE DATE.</b>This section is effective for leases entered into after June <br/>
<a id="pl.52.34"></a><var>52.34</var>30, 2012.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.52.35"></a><var>52.35</var>    Sec. 4. Minnesota Statutes 2010, section 297A.68, subdivision 5, is amended to read:<br/>
<a id="pl.53.1"></a><var>53.1</var>    Subd. 5. <b>Capital equipment.</b> (a) Capital equipment is exempt. Except as provided <br/>
<a id="pl.53.2"></a><var>53.2</var>in paragraphs (e) and (f), the tax must be imposed and collected as if the rate under section <br/>
<statute_ref><a id="pl.53.3"></a><var>53.3</var>297A.62, subdivision 1
         </statute_ref>, applied, and then refunded in the manner provided in section <br/>
<statute_ref><a id="pl.53.4"></a><var>53.4</var>297A.75
         </statute_ref>.<br/>
<a id="pl.53.5"></a><var>53.5</var>"Capital equipment" means machinery and equipment purchased or leased, and used <br/>
<a id="pl.53.6"></a><var>53.6</var>in this state by the purchaser or lessee primarily for manufacturing, fabricating, mining, <br/>
<a id="pl.53.7"></a><var>53.7</var>or refining tangible personal property to be sold ultimately at retail if the machinery and <br/>
<a id="pl.53.8"></a><var>53.8</var>equipment are essential to the integrated production process of manufacturing, fabricating, <br/>
<a id="pl.53.9"></a><var>53.9</var>mining, or refining. Capital equipment also includes machinery and equipment <br/>
<a id="pl.53.10"></a><var>53.10</var>used primarily to electronically transmit results retrieved by a customer of an online <br/>
<a id="pl.53.11"></a><var>53.11</var>computerized data retrieval system.<br/>
<a id="pl.53.12"></a><var>53.12</var>(b) Capital equipment includes, but is not limited to:<br/>
<a id="pl.53.13"></a><var>53.13</var>(1) machinery and equipment used to operate, control, or regulate the production <br/>
<a id="pl.53.14"></a><var>53.14</var>equipment;<br/>
<a id="pl.53.15"></a><var>53.15</var>(2) machinery and equipment used for research and development, design, quality <br/>
<a id="pl.53.16"></a><var>53.16</var>control, and testing activities;<br/>
<a id="pl.53.17"></a><var>53.17</var>(3) environmental control devices that are used to maintain conditions such as <br/>
<a id="pl.53.18"></a><var>53.18</var>temperature, humidity, light, or air pressure when those conditions are essential to and are <br/>
<a id="pl.53.19"></a><var>53.19</var>part of the production process;<br/>
<a id="pl.53.20"></a><var>53.20</var>(4) materials and supplies used to construct and install machinery or equipment;<br/>
<a id="pl.53.21"></a><var>53.21</var>(5) repair and replacement parts, including accessories, whether purchased as spare <br/>
<a id="pl.53.22"></a><var>53.22</var>parts, repair parts, or as upgrades or modifications to machinery or equipment;<br/>
<a id="pl.53.23"></a><var>53.23</var>(6) materials used for foundations that support machinery or equipment;<br/>
<a id="pl.53.24"></a><var>53.24</var>(7) materials used to construct and install special purpose buildings used in the <br/>
<a id="pl.53.25"></a><var>53.25</var>production process;<br/>
<a id="pl.53.26"></a><var>53.26</var>(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed <br/>
<a id="pl.53.27"></a><var>53.27</var>as part of the delivery process regardless if mounted on a chassis, repair parts for <br/>
<a id="pl.53.28"></a><var>53.28</var>ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and<br/>
<a id="pl.53.29"></a><var>53.29</var>(9) machinery or equipment used for research, development, design, or production <br/>
<a id="pl.53.30"></a><var>53.30</var>of computer software.<br/>
<a id="pl.53.31"></a><var>53.31</var>(c) Capital equipment does not include the following:<br/>
<a id="pl.53.32"></a><var>53.32</var>(1) motor vehicles taxed under chapter 297B;<br/>
<a id="pl.53.33"></a><var>53.33</var>(2) machinery or equipment used to receive or store raw materials;<br/>
<a id="pl.53.34"></a><var>53.34</var>(3) building materials, except for materials included in paragraph (b), clauses (6) <br/>
<a id="pl.53.35"></a><var>53.35</var>and (7);<br/>
<a id="pl.54.1"></a><var>54.1</var>(4) machinery or equipment used for nonproduction purposes, including, but not <br/>
<a id="pl.54.2"></a><var>54.2</var>limited to, the following: plant security, fire prevention, first aid, and hospital stations; <br/>
<a id="pl.54.3"></a><var>54.3</var>support operations or administration; pollution control; and plant cleaning, disposal of <br/>
<a id="pl.54.4"></a><var>54.4</var>scrap and waste, plant communications, space heating, cooling, lighting, or safety;<br/>
<a id="pl.54.5"></a><var>54.5</var>(5) farm machinery and aquaculture production equipment as defined by section <br/>
<statute_ref><a id="pl.54.6"></a><var>54.6</var>297A.61
         </statute_ref>, subdivisions 12 and 13;<br/>
<a id="pl.54.7"></a><var>54.7</var>(6) machinery or equipment purchased and installed by a contractor as part of an <br/>
<a id="pl.54.8"></a><var>54.8</var>improvement to real property;<br/>
<a id="pl.54.9"></a><var>54.9</var>(7) machinery and equipment used by restaurants in the furnishing, preparing, or <br/>
<a id="pl.54.10"></a><var>54.10</var>serving of prepared foods as defined in section 
         <statute_ref>297A.61, subdivision 31</statute_ref>;<br/>
<a id="pl.54.11"></a><var>54.11</var>(8) machinery and equipment used to furnish the services listed in section 
         <statute_ref>297A.61, <br/>
<a id="pl.54.12"></a><var>54.12</var>subdivision 3
         </statute_ref>, paragraph (g), clause (6), items (i) to (vi) and (viii);<br/>
<a id="pl.54.13"></a><var>54.13</var>(9) machinery or equipment used in the transportation, transmission, or distribution <br/>
<a id="pl.54.14"></a><var>54.14</var>of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines, <br/>
<a id="pl.54.15"></a><var>54.15</var>tanks, mains, or other means of transporting those products. This clause does not apply to <br/>
<a id="pl.54.16"></a><var>54.16</var>machinery or equipment used to blend petroleum or biodiesel fuel as defined in section <br/>
<statute_ref><a id="pl.54.17"></a><var>54.17</var>239.77
         </statute_ref>; or<br/>
<a id="pl.54.18"></a><var>54.18</var>(10) any other item that is not essential to the integrated process of manufacturing, <br/>
<a id="pl.54.19"></a><var>54.19</var>fabricating, mining, or refining.<br/>
<a id="pl.54.20"></a><var>54.20</var>(d) For purposes of this subdivision:<br/>
<a id="pl.54.21"></a><var>54.21</var>(1) "Equipment" means independent devices or tools separate from machinery but <br/>
<a id="pl.54.22"></a><var>54.22</var>essential to an integrated production process, including computers and computer software, <br/>
<a id="pl.54.23"></a><var>54.23</var>used in operating, controlling, or regulating machinery and equipment; and any subunit or <br/>
<a id="pl.54.24"></a><var>54.24</var>assembly comprising a component of any machinery or accessory or attachment parts of <br/>
<a id="pl.54.25"></a><var>54.25</var>machinery, such as tools, dies, jigs, patterns, and molds.<br/>
<a id="pl.54.26"></a><var>54.26</var>(2) "Fabricating" means to make, build, create, produce, or assemble components or <br/>
<a id="pl.54.27"></a><var>54.27</var>property to work in a new or different manner.<br/>
<a id="pl.54.28"></a><var>54.28</var>(3) "Integrated production process" means a process or series of operations through <br/>
<a id="pl.54.29"></a><var>54.29</var>which tangible personal property is manufactured, fabricated, mined, or refined. For <br/>
<a id="pl.54.30"></a><var>54.30</var>purposes of this clause, (i) manufacturing begins with the removal of raw materials <br/>
<a id="pl.54.31"></a><var>54.31</var>from inventory and ends when the last process prior to loading for shipment has been <br/>
<a id="pl.54.32"></a><var>54.32</var>completed; (ii) fabricating begins with the removal from storage or inventory of the <br/>
<a id="pl.54.33"></a><var>54.33</var>property to be assembled, processed, altered, or modified and ends with the creation <br/>
<a id="pl.54.34"></a><var>54.34</var>or production of the new or changed product; (iii) mining begins with the removal of <br/>
<a id="pl.54.35"></a><var>54.35</var>overburden from the site of the ores, minerals, stone, peat deposit, or surface materials and <br/>
<a id="pl.54.36"></a><var>54.36</var>ends when the last process before stockpiling is completed; and (iv) refining begins with <br/>
<a id="pl.55.1"></a><var>55.1</var>the removal from inventory or storage of a natural resource and ends with the conversion <br/>
<a id="pl.55.2"></a><var>55.2</var>of the item to its completed form.<br/>
<a id="pl.55.3"></a><var>55.3</var>(4) "Machinery" means mechanical, electronic, or electrical devices, including <br/>
<a id="pl.55.4"></a><var>55.4</var>computers and computer software, that are purchased or constructed to be used for the <br/>
<a id="pl.55.5"></a><var>55.5</var>activities set forth in paragraph (a), beginning with the removal of raw materials from <br/>
<a id="pl.55.6"></a><var>55.6</var>inventory through completion of the product, including packaging of the product.<br/>
<a id="pl.55.7"></a><var>55.7</var>(5) "Machinery and equipment used for pollution control" means machinery and <br/>
<a id="pl.55.8"></a><var>55.8</var>equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity <br/>
<a id="pl.55.9"></a><var>55.9</var>described in paragraph (a).<br/>
<a id="pl.55.10"></a><var>55.10</var>(6) "Manufacturing" means an operation or series of operations where raw materials <br/>
<a id="pl.55.11"></a><var>55.11</var>are changed in form, composition, or condition by machinery and equipment and which <br/>
<a id="pl.55.12"></a><var>55.12</var>results in the production of a new article of tangible personal property. For purposes of <br/>
<a id="pl.55.13"></a><var>55.13</var>this subdivision, "manufacturing" includes the generation of electricity or steam to be <br/>
<a id="pl.55.14"></a><var>55.14</var>sold at retail.<br/>
<a id="pl.55.15"></a><var>55.15</var>(7) "Mining" means the extraction of minerals, ores, stone, or peat.<br/>
<a id="pl.55.16"></a><var>55.16</var>(8) "Online data retrieval system" means a system whose cumulation of information <br/>
<a id="pl.55.17"></a><var>55.17</var>is equally available and accessible to all its customers.<br/>
<a id="pl.55.18"></a><var>55.18</var>(9) "Primarily" means machinery and equipment used 50 percent or more of the time <br/>
<a id="pl.55.19"></a><var>55.19</var>in an activity described in paragraph (a).<br/>
<a id="pl.55.20"></a><var>55.20</var>(10) "Refining" means the process of converting a natural resource to an intermediate <br/>
<a id="pl.55.21"></a><var>55.21</var>or finished product, including the treatment of water to be sold at retail.<br/>
<a id="pl.55.22"></a><var>55.22</var>(11) This subdivision does not apply to telecommunications equipment as <br/>
<a id="pl.55.23"></a><var>55.23</var>provided in subdivision 35, and does not apply to wire, cable, fiber, poles, or conduit <br/>
<a id="pl.55.24"></a><var>55.24</var>for telecommunications services.<br/>
<a id="pl.55.25"></a><var>55.25</var>(e) Materials exempt under this section may be purchased without imposing and <br/>
<a id="pl.55.26"></a><var>55.26</var>collecting the tax and applying for a refund under section 297A.75, if, for calendar years <br/>
<a id="pl.55.27"></a><var>55.27</var>2013 to 2015, the purchaser employed not more than 80 full-time employees at any time <br/>
<a id="pl.55.28"></a><var>55.28</var>during calendar year 2010, and:<br/>
<a id="pl.55.29"></a><var>55.29</var>(1) did not have more than $1,000,000 in annual gross revenues or $2,500,000 in <br/>
<a id="pl.55.30"></a><var>55.30</var>annual gross revenues if the business is a technical or professional service; and<br/>
<a id="pl.55.31"></a><var>55.31</var>(2) was not more than 20 percent owned by a business that had more than $1,000,000 <br/>
<a id="pl.55.32"></a><var>55.32</var>in annual gross revenues or $2,500,000 in annual gross revenues if the business is a <br/>
<a id="pl.55.33"></a><var>55.33</var>technical or professional service.<br/>
<a id="pl.55.34"></a><var>55.34</var>(f) For calendar year 2016 and thereafter, all purchases exempt under this section <br/>
<a id="pl.55.35"></a><var>55.35</var>may be purchased without imposing and collecting the tax and applying the refund <br/>
<a id="pl.55.36"></a><var>55.36</var>under section 297A.75.<br/>
<a id="pl.56.1"></a><var>56.1</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.56.2"></a><var>56.2</var>June 30, 2012.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.56.3"></a><var>56.3</var>    Sec. 5. Minnesota Statutes 2011 Supplement, section 297A.68, subdivision 42, is <br/>
<a id="pl.56.4"></a><var>56.4</var>amended to read:<br/>
<a id="pl.56.5"></a><var>56.5</var>    Subd. 42. <b>Qualified data centers.</b> (a) Purchases of enterprise information <br/>
<a id="pl.56.6"></a><var>56.6</var>technology equipment and computer software for use in a qualified data center are exempt. <br/>
<a id="pl.56.7"></a><var>56.7</var>The tax on purchases exempt under this paragraph must be imposed and collected as if <br/>
<a id="pl.56.8"></a><var>56.8</var>the rate under section 
         <statute_ref>297A.62, subdivision 1</statute_ref>, applied, and then refunded after June 30, <br/>
<a id="pl.56.9"></a><var>56.9</var>2013, in the manner provided in section 
         <statute_ref>297A.75</statute_ref>. This exemption includes enterprise <br/>
<a id="pl.56.10"></a><var>56.10</var>information technology equipment and computer software purchased to replace or upgrade <br/>
<a id="pl.56.11"></a><var>56.11</var>enterprise information technology equipment and computer software in a qualified data <br/>
<a id="pl.56.12"></a><var>56.12</var>center.<br/>
<a id="pl.56.13"></a><var>56.13</var>(b) Electricity used or consumed in the operation of a qualified data center is exempt.<br/>
<a id="pl.56.14"></a><var>56.14</var>(c) For purposes of this subdivision, "qualified data center" means a facility in <br/>
<a id="pl.56.15"></a><var>56.15</var>Minnesota:<br/>
<a id="pl.56.16"></a><var>56.16</var>(1) that is comprised of one or more buildings that consist in the aggregate of at <br/>
<a id="pl.56.17"></a><var>56.17</var>least 30,000 square feet, and that are located on a single parcel or on contiguous parcels, <br/>
<a id="pl.56.18"></a><var>56.18</var>where the total cost of construction or refurbishment, investment in enterprise information <br/>
<a id="pl.56.19"></a><var>56.19</var>technology equipment, and computer software is at least $50,000,000 $30,000,000 within <br/>
<a id="pl.56.20"></a><var>56.20</var>a 24-month three-year period;<br/>
<a id="pl.56.21"></a><var>56.21</var>(2) that is constructed or substantially refurbished after June 30, 2012, where <br/>
<a id="pl.56.22"></a><var>56.22</var>"substantially refurbished" means that at least 30,000 25,000 square feet have been rebuilt <br/>
<a id="pl.56.23"></a><var>56.23</var>or modified; and, including:<br/>
<a id="pl.56.24"></a><var>56.24</var>(i) installation of enterprise information technology equipment, computer software, <br/>
<a id="pl.56.25"></a><var>56.25</var>environmental control and energy efficiency improvements; and<br/>
<a id="pl.56.26"></a><var>56.26</var>(ii) building improvements; and<br/>
<a id="pl.56.27"></a><var>56.27</var>(3) that is used to house enterprise information technology equipment, where the <br/>
<a id="pl.56.28"></a><var>56.28</var>facility has the following characteristics:<br/>
<a id="pl.56.29"></a><var>56.29</var>(i) uninterruptible power supplies, generator backup power, or both;<br/>
<a id="pl.56.30"></a><var>56.30</var>(ii) sophisticated fire suppression and prevention systems; and<br/>
<a id="pl.56.31"></a><var>56.31</var>(iii) enhanced security. A facility will be considered to have enhanced security if it <br/>
<a id="pl.56.32"></a><var>56.32</var>has restricted access to the facility to selected personnel; permanent security guards; video <br/>
<a id="pl.56.33"></a><var>56.33</var>camera surveillance; an electronic system requiring pass codes, keycards, or biometric <br/>
<a id="pl.56.34"></a><var>56.34</var>scans, such as hand scans and retinal or fingerprint recognition; or similar security features.<br/>
<a id="pl.57.1"></a><var>57.1</var>In determining whether the facility has the required square footage, the square <br/>
<a id="pl.57.2"></a><var>57.2</var>footage of the following spaces shall be included if the spaces support the operation <br/>
<a id="pl.57.3"></a><var>57.3</var>of enterprise information technology equipment: office space, meeting space, and <br/>
<a id="pl.57.4"></a><var>57.4</var>mechanical and other support facilities. For purposes of this subdivision, "computer <br/>
<a id="pl.57.5"></a><var>57.5</var>software" includes, but is not limited to, software utilized or loaded at the qualified data <br/>
<a id="pl.57.6"></a><var>57.6</var>center, including maintenance, licensing, and software customization.<br/>
<a id="pl.57.7"></a><var>57.7</var>(d) For purposes of this subdivision, "enterprise information technology equipment" <br/>
<a id="pl.57.8"></a><var>57.8</var>means computers and equipment supporting computing, networking, or data storage, <br/>
<a id="pl.57.9"></a><var>57.9</var>including servers and routers. It includes, but is not limited to: cooling systems, <br/>
<a id="pl.57.10"></a><var>57.10</var>cooling towers, and other temperature control infrastructure; power infrastructure for <br/>
<a id="pl.57.11"></a><var>57.11</var>transformation, distribution, or management of electricity used for the maintenance <br/>
<a id="pl.57.12"></a><var>57.12</var>and operation of a qualified data center, including but not limited to exterior dedicated <br/>
<a id="pl.57.13"></a><var>57.13</var>business-owned substations, backup power generation systems, battery systems, and <br/>
<a id="pl.57.14"></a><var>57.14</var>related infrastructure; and racking systems, cabling, and trays, which are necessary for <br/>
<a id="pl.57.15"></a><var>57.15</var>the maintenance and operation of the qualified data center.<br/>
<a id="pl.57.16"></a><var>57.16</var>(e) A qualified data center may claim the exemptions in this subdivision for <br/>
<a id="pl.57.17"></a><var>57.17</var>purchases made either within 20 years of the date of its first purchase qualifying for the <br/>
<a id="pl.57.18"></a><var>57.18</var>exemption under paragraph (a), or by June 30, 2042, whichever is earlier.<br/>
<a id="pl.57.19"></a><var>57.19</var>(f) The purpose of this exemption is to create jobs in the construction and data <br/>
<a id="pl.57.20"></a><var>57.20</var>center industries.<br/>
<a id="pl.57.21"></a><var>57.21</var>(g) This subdivision is effective for sales and purchases made after June 30, 2012, <br/>
<a id="pl.57.22"></a><var>57.22</var>and before July 1, 2042.<br/>
<a id="pl.57.23"></a><var>57.23</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.57.24"></a><var>57.24</var>June 30, 2012.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.57.25"></a><var>57.25</var>    Sec. 6. Minnesota Statutes 2010, section 297A.70, subdivision 4, is amended to read:<br/>
<a id="pl.57.26"></a><var>57.26</var>    Subd. 4. <b>Sales to nonprofit groups.</b> (a) All sales, except those listed in paragraph <br/>
<a id="pl.57.27"></a><var>57.27</var>(b), to the following "nonprofit organizations" are exempt:<br/>
<a id="pl.57.28"></a><var>57.28</var>(1) a corporation, society, association, foundation, or institution organized and <br/>
<a id="pl.57.29"></a><var>57.29</var>operated exclusively for charitable, religious, or educational purposes if the item <br/>
<a id="pl.57.30"></a><var>57.30</var>purchased is used in the performance of charitable, religious, or educational functions; and<br/>
<a id="pl.57.31"></a><var>57.31</var>(2) any senior citizen group or association of groups that:<br/>
<a id="pl.57.32"></a><var>57.32</var>(i) in general limits membership to persons who are either age 55 or older, or <br/>
<a id="pl.57.33"></a><var>57.33</var>physically disabled;<br/>
<a id="pl.58.1"></a><var>58.1</var>(ii) is organized and operated exclusively for pleasure, recreation, and other <br/>
<a id="pl.58.2"></a><var>58.2</var>nonprofit purposes, not including housing, no part of the net earnings of which inures to <br/>
<a id="pl.58.3"></a><var>58.3</var>the benefit of any private shareholders; and<br/>
<a id="pl.58.4"></a><var>58.4</var>(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.<br/>
<a id="pl.58.5"></a><var>58.5</var>For purposes of this subdivision, charitable purpose includes the maintenance of a <br/>
<a id="pl.58.6"></a><var>58.6</var>cemetery owned by a religious organization.<br/>
<a id="pl.58.7"></a><var>58.7</var>(b) This exemption does not apply to the following sales:<br/>
<a id="pl.58.8"></a><var>58.8</var>(1) building, construction, or reconstruction materials purchased by a contractor <br/>
<a id="pl.58.9"></a><var>58.9</var>or a subcontractor as a part of a lump-sum contract or similar type of contract with a <br/>
<a id="pl.58.10"></a><var>58.10</var>guaranteed maximum price covering both labor and materials for use in the construction, <br/>
<a id="pl.58.11"></a><var>58.11</var>alteration, or repair of a building or facility;<br/>
<a id="pl.58.12"></a><var>58.12</var>(2) construction materials purchased by tax-exempt entities or their contractors to <br/>
<a id="pl.58.13"></a><var>58.13</var>be used in constructing buildings or facilities that will not be used principally by the <br/>
<a id="pl.58.14"></a><var>58.14</var>tax-exempt entities; and<br/>
<a id="pl.58.15"></a><var>58.15</var>(3) lodging as defined under section 
         <statute_ref>297A.61, subdivision 3</statute_ref>, paragraph (g), clause <br/>
<a id="pl.58.16"></a><var>58.16</var>(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section <br/>
<statute_ref><a id="pl.58.17"></a><var>58.17</var>297A.67, subdivision 2
         </statute_ref>, except wine purchased by an established religious organization <br/>
<a id="pl.58.18"></a><var>58.18</var>for sacramental purposes or as allowed under subdivision 9a; and<br/>
<a id="pl.58.19"></a><var>58.19</var>(4) leasing of a motor vehicle as defined in section 
         <statute_ref>297B.01, subdivision 11</statute_ref>, except <br/>
<a id="pl.58.20"></a><var>58.20</var>as provided in paragraph (c).<br/>
<a id="pl.58.21"></a><var>58.21</var>(c) This exemption applies to the leasing of a motor vehicle as defined in section <br/>
<statute_ref><a id="pl.58.22"></a><var>58.22</var>297B.01, subdivision 11
         </statute_ref>, only if the vehicle is:<br/>
<a id="pl.58.23"></a><var>58.23</var>(1) a truck, as defined in section 
         <statute_ref>168.002</statute_ref>, a bus, as defined in section 
         <statute_ref>168.002</statute_ref>, or a <br/>
<a id="pl.58.24"></a><var>58.24</var>passenger automobile, as defined in section 
         <statute_ref>168.002</statute_ref>, if the automobile is designed and <br/>
<a id="pl.58.25"></a><var>58.25</var>used for carrying more than nine persons including the driver; and<br/>
<a id="pl.58.26"></a><var>58.26</var>(2) intended to be used primarily to transport tangible personal property or <br/>
<a id="pl.58.27"></a><var>58.27</var>individuals, other than employees, to whom the organization provides service in <br/>
<a id="pl.58.28"></a><var>58.28</var>performing its charitable, religious, or educational purpose.<br/>
<a id="pl.58.29"></a><var>58.29</var>(d) A limited liability company also qualifies for exemption under this subdivision if <br/>
<a id="pl.58.30"></a><var>58.30</var>(1) it consists of a sole member that would qualify for the exemption, and (2) the items <br/>
<a id="pl.58.31"></a><var>58.31</var>purchased qualify for the exemption.<br/>
<a id="pl.58.32"></a><var>58.32</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.58.33"></a><var>58.33</var>June 30, 2012.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.58.34"></a><var>58.34</var>    Sec. 7. Minnesota Statutes 2010, section 297A.70, is amended by adding a subdivision <br/>
<a id="pl.58.35"></a><var>58.35</var>to read:<br/>
<a id="pl.59.1"></a><var>59.1</var>    Subd. 9a. <b>Established religious orders.</b> (a) Sales of lodging, prepared food, candy, <br/>
<a id="pl.59.2"></a><var>59.2</var>soft drinks, and alcoholic beverages at noncatered events between an established religious <br/>
<a id="pl.59.3"></a><var>59.3</var>order and an affiliated institution of higher education are exempt.<br/>
<a id="pl.59.4"></a><var>59.4</var>(b) For purposes of this subdivision, "established religious order" means an <br/>
<a id="pl.59.5"></a><var>59.5</var>organization directly or indirectly under the control or supervision of a church or <br/>
<a id="pl.59.6"></a><var>59.6</var>convention or association of churches, where members of the organization (1) normally <br/>
<a id="pl.59.7"></a><var>59.7</var>live together as part of a community, (2) make long-term commitments to live under a <br/>
<a id="pl.59.8"></a><var>59.8</var>strict set of moral and spiritual rules, and (3) work or engage full time in a combination <br/>
<a id="pl.59.9"></a><var>59.9</var>of prayer, religious study, church reform or renewal, or other religious, educational, or <br/>
<a id="pl.59.10"></a><var>59.10</var>charitable goals of the organization.<br/>
<a id="pl.59.11"></a><var>59.11</var>(c) For purposes of this subdivision, an institution of higher education is "affiliated" <br/>
<a id="pl.59.12"></a><var>59.12</var>with an established religious order if members of the religious order are represented <br/>
<a id="pl.59.13"></a><var>59.13</var>on the governing board of the institution of higher education and the two organization <br/>
<a id="pl.59.14"></a><var>59.14</var>share campus space and common facilities.<br/>
<a id="pl.59.15"></a><var>59.15</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.59.16"></a><var>59.16</var>June 30, 2012.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.59.17"></a><var>59.17</var>    Sec. 8. Minnesota Statutes 2010, section 297A.70, is amended by adding a subdivision <br/>
<a id="pl.59.18"></a><var>59.18</var>to read:<br/>
<a id="pl.59.19"></a><var>59.19</var>    Subd. 18. <b>Nursing homes and boarding care homes.</b> (a) All sales, except those <br/>
<a id="pl.59.20"></a><var>59.20</var>listed in paragraph (b), to a nursing home licensed under section 144A.02 or a boarding <br/>
<a id="pl.59.21"></a><var>59.21</var>care home certified as a nursing facility under title 19 of the Social Security Act are <br/>
<a id="pl.59.22"></a><var>59.22</var>exempt if the facility:<br/>
<a id="pl.59.23"></a><var>59.23</var>(1) is exempt from federal income taxation pursuant to section 501(c)(3) of the <br/>
<a id="pl.59.24"></a><var>59.24</var>Internal Revenue Code; and<br/>
<a id="pl.59.25"></a><var>59.25</var>(2) is certified to participate in the medical assistance program under title 19 of the <br/>
<a id="pl.59.26"></a><var>59.26</var>Social Security Act, or certifies to the commissioner that it does not discharge residents <br/>
<a id="pl.59.27"></a><var>59.27</var>due to the inability to pay.<br/>
<a id="pl.59.28"></a><var>59.28</var>(b) This exemption does not apply to the following sales:<br/>
<a id="pl.59.29"></a><var>59.29</var>(1) building, construction, or reconstruction materials purchased by a contractor <br/>
<a id="pl.59.30"></a><var>59.30</var>or a subcontractor as a part of a lump-sum contract or similar type of contract with a <br/>
<a id="pl.59.31"></a><var>59.31</var>guaranteed maximum price covering both labor and materials for use in the construction, <br/>
<a id="pl.59.32"></a><var>59.32</var>alteration, or repair of a building or facility;<br/>
<a id="pl.59.33"></a><var>59.33</var>(2) construction materials purchased by tax-exempt entities or their contractors to <br/>
<a id="pl.59.34"></a><var>59.34</var>be used in constructing buildings or facilities that will not be used principally by the <br/>
<a id="pl.59.35"></a><var>59.35</var>tax-exempt entities;<br/>
<a id="pl.60.1"></a><var>60.1</var>(3) lodging as defined under section 
<statute_ref>297A.61, subdivision 3</statute_ref>, paragraph (g), clause <br/>
<a id="pl.60.2"></a><var>60.2</var>(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section <br/>
<a id="pl.60.3"></a><var>60.3</var><statute_ref>297A.67, subdivision 2</statute_ref>; and<br/>
<a id="pl.60.4"></a><var>60.4</var>(4) leasing of a motor vehicle as defined in section 
<statute_ref>297B.01, subdivision 11</statute_ref>, except <br/>
<a id="pl.60.5"></a><var>60.5</var>as provided in paragraph (c).<br/>
<a id="pl.60.6"></a><var>60.6</var>(c) This exemption applies to the leasing of a motor vehicle as defined in section <br/>
<a id="pl.60.7"></a><var>60.7</var><statute_ref>297B.01, subdivision 11</statute_ref>, only if the vehicle is:<br/>
<a id="pl.60.8"></a><var>60.8</var>(1) a truck, as defined in section 
<statute_ref>168.002</statute_ref>; a bus, as defined in section 
<statute_ref>168.002</statute_ref>; or a <br/>
<a id="pl.60.9"></a><var>60.9</var>passenger automobile, as defined in section 
<statute_ref>168.002</statute_ref>, if the automobile is designed and <br/>
<a id="pl.60.10"></a><var>60.10</var>used for carrying more than nine persons including the driver; and<br/>
<a id="pl.60.11"></a><var>60.11</var>(2) intended to be used primarily to transport tangible personal property or residents <br/>
<a id="pl.60.12"></a><var>60.12</var>of the nursing home or boarding care home.<br/>
<a id="pl.60.13"></a><var>60.13</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.60.14"></a><var>60.14</var>June 30, 2012.<br/>
<br/>
<a id="bill.3.9.0"></a><a id="pl.60.15"></a><var>60.15</var>    Sec. 9. Minnesota Statutes 2010, section 297A.815, subdivision 3, is amended to read:<br/>
<a id="pl.60.16"></a><var>60.16</var>    Subd. 3. <b>Motor vehicle lease sales tax revenue.</b> (a) For purposes of this <br/>
<a id="pl.60.17"></a><var>60.17</var>subdivision, "net revenue" means an amount equal to:<br/>
<a id="pl.60.18"></a><var>60.18</var>    (1) the revenues, including interest and penalties, collected under this section and <br/>
<a id="pl.60.19"></a><var>60.19</var>on the leases under section 297A.61, subdivision 4, paragraph (k), clause (3), during <br/>
<a id="pl.60.20"></a><var>60.20</var>the fiscal year; less<br/>
<a id="pl.60.21"></a><var>60.21</var>    (2) in fiscal year 2011, $30,100,000; in fiscal year 2012, $31,100,000; and in fiscal <br/>
<a id="pl.60.22"></a><var>60.22</var>year 2013 and following fiscal years, $32,000,000.<br/>
<a id="pl.60.23"></a><var>60.23</var>    (b) On or before June 30 of each fiscal year, the commissioner of revenue shall <br/>
<a id="pl.60.24"></a><var>60.24</var>estimate the amount of the revenues and subtraction under paragraph (a) for the current <br/>
<a id="pl.60.25"></a><var>60.25</var>fiscal year.<br/>
<a id="pl.60.26"></a><var>60.26</var>    (c) On or after July 1 of the subsequent fiscal year, the commissioner of management <br/>
<a id="pl.60.27"></a><var>60.27</var>and budget shall transfer the net revenue as estimated in paragraph (b) from the general <br/>
<a id="pl.60.28"></a><var>60.28</var>fund, as follows:<br/>
<a id="pl.60.29"></a><var>60.29</var>    (1) 50 percent to the greater Minnesota transit account; and<br/>
<a id="pl.60.30"></a><var>60.30</var>    (2) 50 percent to the county state-aid highway fund. Notwithstanding any other law <br/>
<a id="pl.60.31"></a><var>60.31</var>to the contrary, the commissioner of transportation shall allocate the funds transferred <br/>
<a id="pl.60.32"></a><var>60.32</var>under this clause to the counties in the metropolitan area, as defined in section 
         <statute_ref>473.121</statute_ref>, <br/>
<a id="pl.60.33"></a><var>60.33</var>subdivision 4, excluding the counties of Hennepin and Ramsey, so that each county shall <br/>
<a id="pl.60.34"></a><var>60.34</var>receive of such amount the percentage that its population, as defined in section 
         <statute_ref>477A.011</statute_ref>, <br/>
<a id="pl.61.1"></a><var>61.1</var>subdivision 3, estimated or established by July 15 of the year prior to the current calendar <br/>
<a id="pl.61.2"></a><var>61.2</var>year, bears to the total population of the counties receiving funds under this clause.<br/>
<a id="pl.61.3"></a><var>61.3</var>    (d) For fiscal years 2010 and 2011, the amount under paragraph (a), clause (1), must <br/>
<a id="pl.61.4"></a><var>61.4</var>be calculated using the following percentages of the total revenues:<br/>
<a id="pl.61.5"></a><var>61.5</var>    (1) for fiscal year 2010, 83.75 percent; and<br/>
<a id="pl.61.6"></a><var>61.6</var>    (2) for fiscal year 2011, 93.75 percent.<br/>
<a id="pl.61.7"></a><var>61.7</var><b>EFFECTIVE DATE.</b>This section is effective for leases entered into after June <br/>
<a id="pl.61.8"></a><var>61.8</var>30, 2012.<br/>
<br/>
<a id="bill.3.10.0"></a><a id="pl.61.9"></a><var>61.9</var>    Sec. 10. Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by <br/>
<a id="pl.61.10"></a><var>61.10</var>Laws 2005, First Special Session chapter 3, article 5, section 28, and Laws 2011, First <br/>
<a id="pl.61.11"></a><var>61.11</var>Special Session chapter 7, article 4, section 5, is amended to read:<br/>
<a id="pl.61.12"></a><var>61.12</var>    Subd. 3. <b>Use of revenues.</b> (a) Revenues received from the taxes authorized by <br/>
<a id="pl.61.13"></a><var>61.13</var>subdivisions 1 and 2 must be used by the city to pay for the cost of collecting and <br/>
<a id="pl.61.14"></a><var>61.14</var>administering the taxes and to pay for the following projects:<br/>
<a id="pl.61.15"></a><var>61.15</var>    (1) transportation infrastructure improvements including regional highway and <br/>
<a id="pl.61.16"></a><var>61.16</var>airport improvements;<br/>
<a id="pl.61.17"></a><var>61.17</var>    (2) improvements to the civic center complex;<br/>
<a id="pl.61.18"></a><var>61.18</var>    (3) a municipal water, sewer, and storm sewer project necessary to improve regional <br/>
<a id="pl.61.19"></a><var>61.19</var>ground water quality; and<br/>
<a id="pl.61.20"></a><var>61.20</var>    (4) construction of a regional recreation and sports center and other higher education <br/>
<a id="pl.61.21"></a><var>61.21</var>facilities available for both community and student use.<br/>
<a id="pl.61.22"></a><var>61.22</var>    (b) The total amount of capital expenditures or bonds for projects listed in paragraph <br/>
<a id="pl.61.23"></a><var>61.23</var>(a) that may be paid from the revenues raised from the taxes authorized in this section <br/>
<a id="pl.61.24"></a><var>61.24</var>may not exceed $111,500,000. The total amount of capital expenditures or bonds for the <br/>
<a id="pl.61.25"></a><var>61.25</var>project in clause (4) that may be paid from the revenues raised from the taxes authorized <br/>
<a id="pl.61.26"></a><var>61.26</var>in this section may not exceed $28,000,000.<br/>
<a id="pl.61.27"></a><var>61.27</var>    (c) In addition to the projects authorized in paragraph (a) and not subject to the <br/>
<a id="pl.61.28"></a><var>61.28</var>amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an <br/>
<a id="pl.61.29"></a><var>61.29</var>election under subdivision 5, paragraph (c), use the revenues received from the taxes and <br/>
<a id="pl.61.30"></a><var>61.30</var>bonds authorized in this section to pay the costs of or bonds for the following purposes:<br/>
<a id="pl.61.31"></a><var>61.31</var>    (1) $17,000,000 for capital expenditures and bonds for the following Olmsted <br/>
<a id="pl.61.32"></a><var>61.32</var>County transportation infrastructure improvements:<br/>
<a id="pl.61.33"></a><var>61.33</var>    (i) County State Aid Highway 34 reconstruction;<br/>
<a id="pl.61.34"></a><var>61.34</var>    (ii) Trunk Highway 63 and County State Aid Highway 16 interchange; <br/>
<a id="pl.62.1"></a><var>62.1</var>    (iii) phase II of the Trunk Highway 52 and County State Aid Highway 22 <br/>
<a id="pl.62.2"></a><var>62.2</var>interchange;<br/>
<a id="pl.62.3"></a><var>62.3</var>    (iv) widening of County State Aid Highway 22 West Circle Drive; and <br/>
<a id="pl.62.4"></a><var>62.4</var>    (v) 60th Avenue Northwest corridor preservation;<br/>
<a id="pl.62.5"></a><var>62.5</var>    (2) $30,000,000 for city transportation projects including:<br/>
<a id="pl.62.6"></a><var>62.6</var>    (i) Trunk Highway 52 and 65th Street interchange;<br/>
<a id="pl.62.7"></a><var>62.7</var>    (ii) NW transportation corridor acquisition; <br/>
<a id="pl.62.8"></a><var>62.8</var>    (iii) Phase I of the Trunk Highway 52 and County State Aid Highway 22 interchange;<br/>
<a id="pl.62.9"></a><var>62.9</var>    (iv) Trunk Highway 14 and Trunk Highway 63 intersection;<br/>
<a id="pl.62.10"></a><var>62.10</var>    (v) Southeast transportation corridor acquisition;<br/>
<a id="pl.62.11"></a><var>62.11</var>    (vi) Rochester International Airport expansion; and <br/>
<a id="pl.62.12"></a><var>62.12</var>    (vii) a transit operations center bus facility;<br/>
<a id="pl.62.13"></a><var>62.13</var>    (3) $14,000,000 for the University of Minnesota Rochester academic and <br/>
<a id="pl.62.14"></a><var>62.14</var>complementary facilities;<br/>
<a id="pl.62.15"></a><var>62.15</var>    (4) $6,500,000 for the Rochester Community and Technical College/Winona State <br/>
<a id="pl.62.16"></a><var>62.16</var>University career technical education and science and math facilities;<br/>
<a id="pl.62.17"></a><var>62.17</var>    (5) $6,000,000 for the Rochester Community and Technical College regional <br/>
<a id="pl.62.18"></a><var>62.18</var>recreation facilities at University Center Rochester;<br/>
<a id="pl.62.19"></a><var>62.19</var>    (6) $20,000,000 for the Destination Medical Community Initiative;<br/>
<a id="pl.62.20"></a><var>62.20</var>    (7) $8,000,000 for the regional public safety and 911 dispatch center facilities;<br/>
<a id="pl.62.21"></a><var>62.21</var>    (8) $20,000,000 for a regional recreation/senior center;<br/>
<a id="pl.62.22"></a><var>62.22</var>    (9) $10,000,000 for an economic development fund; and<br/>
<a id="pl.62.23"></a><var>62.23</var>    (10) $8,000,000 for downtown infrastructure.<br/>
<a id="pl.62.24"></a><var>62.24</var>    (d) No revenues from the taxes raised from the taxes authorized in subdivisions 1 <br/>
<a id="pl.62.25"></a><var>62.25</var>and 2 may be used to fund transportation improvements related to a railroad bypass that <br/>
<a id="pl.62.26"></a><var>62.26</var>would divert traffic from the city of Rochester.<br/>
<a id="pl.62.27"></a><var>62.27</var>    (e) The city shall use $5,000,000 of the money allocated to the purpose in paragraph <br/>
<a id="pl.62.28"></a><var>62.28</var>(c), clause (9), for grants to the cities of Byron, Chatfield, Dodge Center, Dover, Elgin, <br/>
<a id="pl.62.29"></a><var>62.29</var>Eyota, Kasson, Mantorville, Oronoco, Pine Island, Plainview, St. Charles, Stewartville, <br/>
<a id="pl.62.30"></a><var>62.30</var>Zumbrota, Spring Valley, West Concord, and Hayfield, and any other city with a 2010 <br/>
<a id="pl.62.31"></a><var>62.31</var>population of at least 1,000 that has a city boundary within 25 miles of the geographic <br/>
<a id="pl.62.32"></a><var>62.32</var>center of Rochester and is closer to Rochester than to any other city located wholly <br/>
<a id="pl.62.33"></a><var>62.33</var>outside of the seven-county metropolitan area with a population of 20,000 or more, <br/>
<a id="pl.62.34"></a><var>62.34</var>for economic development projects that these communities would fund through their <br/>
<a id="pl.62.35"></a><var>62.35</var>economic development authority or housing and redevelopment authority.<br/>
<a id="pl.62.36"></a><var>62.36</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.11.0"></a><a id="pl.63.1"></a><var>63.1</var>    Sec. 11. Laws 2002, chapter 377, article 3, section 25, as amended by Laws 2009, <br/>
<a id="pl.63.2"></a><var>63.2</var>chapter 88, article 4, section 19, and Laws 2010, chapter 389, article 5, section 3, is <br/>
<a id="pl.63.3"></a><var>63.3</var>amended to read:<br/>
<a id="pl.63.4"></a><var>63.4</var>    Sec. 25. <b>ROCHESTER LODGING TAX.</b><br/>
<a id="pl.63.5"></a><var>63.5</var>    Subdivision 1. <b>Authorization.</b> Notwithstanding Minnesota Statutes, section <br/>
<statute_ref><a id="pl.63.6"></a><var>63.6</var>469.190
         </statute_ref> or 
         <statute_ref>477A.016</statute_ref>, or any other law, the city of Rochester may impose an additional <br/>
<a id="pl.63.7"></a><var>63.7</var>tax of one percent on the gross receipts from the furnishing for consideration of lodging at <br/>
<a id="pl.63.8"></a><var>63.8</var>a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it <br/>
<a id="pl.63.9"></a><var>63.9</var>for a continuous period of 30 days or more.<br/>
<a id="pl.63.10"></a><var>63.10</var>    Subd. 1a. <b>Authorization.</b> Notwithstanding Minnesota Statutes, section 
         <statute_ref>469.190</statute_ref> <br/>
<a id="pl.63.11"></a><var>63.11</var>or 
         <statute_ref>477A.016</statute_ref>, or any other law, and in addition to the tax authorized by subdivision 1, <br/>
<a id="pl.63.12"></a><var>63.12</var>the city of Rochester may impose an additional tax of one three percent on the gross <br/>
<a id="pl.63.13"></a><var>63.13</var>receipts from the furnishing for consideration of lodging at a hotel, motel, rooming house, <br/>
<a id="pl.63.14"></a><var>63.14</var>tourist court, or resort, other than the renting or leasing of it for a continuous period of <br/>
<a id="pl.63.15"></a><var>63.15</var>30 days or more only upon the approval of the city governing body of a total financial <br/>
<a id="pl.63.16"></a><var>63.16</var>package for the project.<br/>
<a id="pl.63.17"></a><var>63.17</var>    Subd. 2. <b>Disposition of proceeds.</b> (a) The gross proceeds from the tax imposed <br/>
<a id="pl.63.18"></a><var>63.18</var>under subdivision 1 must be used by the city to fund a local convention or tourism bureau <br/>
<a id="pl.63.19"></a><var>63.19</var>for the purpose of marketing and promoting the city as a tourist or convention center.<br/>
<a id="pl.63.20"></a><var>63.20</var>    (b) The gross proceeds from the one three percent tax imposed under subdivision <br/>
<a id="pl.63.21"></a><var>63.21</var>1a shall be used to pay for (1) construction, renovation, improvement, and expansion of <br/>
<a id="pl.63.22"></a><var>63.22</var>the Mayo Civic Center and related skyway access, lighting, parking, or landscaping; and <br/>
<a id="pl.63.23"></a><var>63.23</var>(2) for payment of any principal, interest, or premium on bonds issued to finance the <br/>
<a id="pl.63.24"></a><var>63.24</var>construction, renovation, improvement, and expansion of the Mayo Civic Center Complex.<br/>
<a id="pl.63.25"></a><var>63.25</var>    Subd. 2a. <b>Bonds.</b> The city of Rochester may issue, without an election, general <br/>
<a id="pl.63.26"></a><var>63.26</var>obligation bonds of the city, in one or more series, in the aggregate principal amount <br/>
<a id="pl.63.27"></a><var>63.27</var>not to exceed $43,500,000, to pay for capital and administrative costs for the design, <br/>
<a id="pl.63.28"></a><var>63.28</var>construction, renovation, improvement, and expansion of the Mayo Civic Center Complex, <br/>
<a id="pl.63.29"></a><var>63.29</var>and related skyway, access, lighting, parking, and landscaping. The city may pledge <br/>
<a id="pl.63.30"></a><var>63.30</var>the lodging tax authorized by subdivision 1a and the food and beverage tax authorized <br/>
<a id="pl.63.31"></a><var>63.31</var>under Laws 2009, chapter 88, article 4, section 23, to the payment of the bonds. The debt <br/>
<a id="pl.63.32"></a><var>63.32</var>represented by the bonds is not included in computing any debt limitations applicable to <br/>
<a id="pl.63.33"></a><var>63.33</var>the city, and the levy of taxes required by Minnesota Statutes, section 
         <statute_ref>475.61</statute_ref>, to pay the <br/>
<a id="pl.63.34"></a><var>63.34</var>principal of and interest on the bonds is not subject to any levy limitation or included in <br/>
<a id="pl.63.35"></a><var>63.35</var>computing or applying any levy limitation applicable to the city.<br/>
<a id="pl.64.1"></a><var>64.1</var>    Subd. 3. <b>Expiration of taxing authority.</b> The authority of the city to impose a <br/>
<a id="pl.64.2"></a><var>64.2</var>tax under subdivision 1a shall expire when the principal and interest on any bonds or <br/>
<a id="pl.64.3"></a><var>64.3</var>other obligations issued prior to December 31, 2014 2016, to finance the construction, <br/>
<a id="pl.64.4"></a><var>64.4</var>renovation, improvement, and expansion of the Mayo Civic Center Complex and related <br/>
<a id="pl.64.5"></a><var>64.5</var>skyway access, lighting, parking, or landscaping have been paid, including any bonds <br/>
<a id="pl.64.6"></a><var>64.6</var>issued to refund such bonds, or at an earlier time as the city shall, by ordinance, determine. <br/>
<a id="pl.64.7"></a><var>64.7</var>Any funds remaining after completion of the project and retirement or redemption of the <br/>
<a id="pl.64.8"></a><var>64.8</var>bonds shall be placed in the general fund of the city.<br/>
<a id="pl.64.9"></a><var>64.9</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.64.10"></a><var>64.10</var>the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section <br/>
<a id="pl.64.11"></a><var>64.11</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.3.12.0"></a><a id="pl.64.12"></a><var>64.12</var>    Sec. 12. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision <br/>
<a id="pl.64.13"></a><var>64.13</var>2, is amended to read:<br/>
<a id="pl.64.14"></a><var>64.14</var>    Subd. 2. <b>Use of revenues.</b> (a) Revenues received from the tax authorized by <br/>
<a id="pl.64.15"></a><var>64.15</var>subdivision 1 by the city of St. Cloud must be used for the cost of collecting and <br/>
<a id="pl.64.16"></a><var>64.16</var>administering the tax and to pay all or part of the capital or administrative costs of the <br/>
<a id="pl.64.17"></a><var>64.17</var>development, acquisition, construction, improvement, and securing and paying debt <br/>
<a id="pl.64.18"></a><var>64.18</var>service on bonds or other obligations issued to finance the following regional projects as <br/>
<a id="pl.64.19"></a><var>64.19</var>approved by the voters and specifically detailed in the referendum authorizing the tax or <br/>
<a id="pl.64.20"></a><var>64.20</var>extending the tax:<br/>
<a id="pl.64.21"></a><var>64.21</var>    (1) St. Cloud Regional Airport;<br/>
<a id="pl.64.22"></a><var>64.22</var>    (2) regional transportation improvements;<br/>
<a id="pl.64.23"></a><var>64.23</var>    (3) regional community and aquatics centers and facilities;<br/>
<a id="pl.64.24"></a><var>64.24</var>    (4) regional public libraries; and <br/>
<a id="pl.64.25"></a><var>64.25</var>    (5) acquisition and improvement of regional park land and open space.<br/>
<a id="pl.64.26"></a><var>64.26</var>    (b) Revenues received from the tax authorized by subdivision 1 by the cities of St. <br/>
<a id="pl.64.27"></a><var>64.27</var>Joseph, Waite Park, Sartell, Sauk Rapids, and St. Augusta must be used for the cost of <br/>
<a id="pl.64.28"></a><var>64.28</var>collecting and administering the tax and to pay all or part of the capital or administrative <br/>
<a id="pl.64.29"></a><var>64.29</var>costs of the development, acquisition, construction, improvement, and securing and paying <br/>
<a id="pl.64.30"></a><var>64.30</var>debt service on bonds or other obligations issued to fund the projects specifically approved <br/>
<a id="pl.64.31"></a><var>64.31</var>by the voters at the referendum authorizing the tax or extending the tax. The portion of <br/>
<a id="pl.64.32"></a><var>64.32</var>revenues from the city going to fund the regional airport or regional library located in the <br/>
<a id="pl.64.33"></a><var>64.33</var>city of St. Cloud will be as required under the applicable joint powers agreement.<br/>
<a id="pl.65.1"></a><var>65.1</var>    (c) The use of revenues received from the taxes authorized in subdivision 1 for <br/>
<a id="pl.65.2"></a><var>65.2</var>projects allowed under paragraphs (a) and (b) are limited to the amount authorized for <br/>
<a id="pl.65.3"></a><var>65.3</var>each project under the enabling referendum.<br/>
<a id="pl.65.4"></a><var>65.4</var><b>EFFECTIVE DATE.</b>This section is effective for the city that approves them the <br/>
<a id="pl.65.5"></a><var>65.5</var>day after compliance by the governing body of each city with Minnesota Statutes, section <br/>
<a id="pl.65.6"></a><var>65.6</var>645.021, subdivision 3.<br/>
<br/>
<a id="bill.3.13.0"></a><a id="pl.65.7"></a><var>65.7</var>    Sec. 13. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision <br/>
<a id="pl.65.8"></a><var>65.8</var>4, is amended to read:<br/>
<a id="pl.65.9"></a><var>65.9</var>    Subd. 4. <b>Termination of tax.</b> The tax imposed in the cities of St. Joseph, St. Cloud, <br/>
<a id="pl.65.10"></a><var>65.10</var>St. Augusta, Sartell, Sauk Rapids, and Waite Park under subdivision 1 expires when the <br/>
<a id="pl.65.11"></a><var>65.11</var>city council determines that sufficient funds have been collected from the tax to retire or <br/>
<a id="pl.65.12"></a><var>65.12</var>redeem the bonds and obligations authorized under subdivision 2, paragraph (a), but no <br/>
<a id="pl.65.13"></a><var>65.13</var>later than December 31, 2018. Notwithstanding Minnesota Statutes, section 297A.99, <br/>
<a id="pl.65.14"></a><var>65.14</var>subdivision 3, paragraphs (a), (c), and (d), a city may extend the tax imposed under <br/>
<a id="pl.65.15"></a><var>65.15</var>subdivision 1 through December 31, 2038, if approved under the referendum authorizing <br/>
<a id="pl.65.16"></a><var>65.16</var>the tax under subdivision 1 or if approved by voters of the city at a general election held <br/>
<a id="pl.65.17"></a><var>65.17</var>no later than November 6, 2017.<br/>
<a id="pl.65.18"></a><var>65.18</var><b>EFFECTIVE DATE.</b>This section is effective for the city that approves them the <br/>
<a id="pl.65.19"></a><var>65.19</var>day after compliance by the governing body of each city with Minnesota Statutes, section <br/>
<a id="pl.65.20"></a><var>65.20</var>645.021, subdivision 3.<br/>
<br/>
<a id="bill.3.14.0"></a><a id="pl.65.21"></a><var>65.21</var>    Sec. 14. Laws 2008, chapter 366, article 7, section 19, subdivision 3, as amended by <br/>
<a id="pl.65.22"></a><var>65.22</var>Laws 2011, First Special Session chapter 7, article 4, section 8, is amended to read:<br/>
<a id="pl.65.23"></a><var>65.23</var>    Subd. 3. <b>Use of revenues.</b> Notwithstanding Minnesota Statutes, section 
         <statute_ref>297A.99, <br/>
<a id="pl.65.24"></a><var>65.24</var>subdivision 3
         </statute_ref>, paragraph (b), the proceeds of the tax imposed under this section shall be <br/>
<a id="pl.65.25"></a><var>65.25</var>used to pay for the costs of improvements to the Sportsman Park/Ballfields, Riverside <br/>
<a id="pl.65.26"></a><var>65.26</var>Park, Lions Park/Pavilion, Cedar South Park also known as Eldorado Park, and Spring <br/>
<a id="pl.65.27"></a><var>65.27</var>Street Park; improvements to and extension of the River County bike trail; acquisition, <br/>
<a id="pl.65.28"></a><var>65.28</var>and construction, improvement, and development of regional parks, bicycle trails, park <br/>
<a id="pl.65.29"></a><var>65.29</var>land, open space, and of a pedestrian walkways, as described in the city improvement plan <br/>
<a id="pl.65.30"></a><var>65.30</var>adopted by the city council by resolution on December 12, 2006, and walkway over <br/>
<a id="pl.65.31"></a><var>65.31</var>Interstate 94 and State Highway 24; and the acquisition of land and construction of <br/>
<a id="pl.65.32"></a><var>65.32</var>buildings for a community and recreation center. The total amount of revenues from the <br/>
<a id="pl.66.1"></a><var>66.1</var>taxes in subdivisions 1 and 2 that may be used to fund these projects is $12,000,000 <br/>
<a id="pl.66.2"></a><var>66.2</var>plus any associated bond costs.<br/>
<a id="pl.66.3"></a><var>66.3</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.66.4"></a><var>66.4</var>governing body of the city of Clearwater with Minnesota Statutes, section 645.021, <br/>
<a id="pl.66.5"></a><var>66.5</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.3.15.0"></a><a id="pl.66.6"></a><var>66.6</var>    Sec. 15. <b> REPEALER.</b><br/>
<a id="pl.66.7"></a><var>66.7</var>(a) Minnesota Statutes 2011 Supplement, section 289A.60, subdivision 31, is <br/>
<a id="pl.66.8"></a><var>66.8</var>repealed. <br/>
<a id="pl.66.9"></a><var>66.9</var>(b) Laws 2009, chapter 88, article 4, section 23, as amended by Laws 2010, chapter <br/>
<a id="pl.66.10"></a><var>66.10</var>389, article 5, section 4, is repealed.<br/>
<a id="pl.66.11"></a><var>66.11</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective for taxes due and payable after June <br/>
<a id="pl.66.12"></a><var>66.12</var>30, 2012. Paragraph (b) is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.66.15"></a><var>66.15</var>    Section 1. Minnesota Statutes 2010, section 469.174, subdivision 2, is amended to read:<br/>
<a id="pl.66.16"></a><var>66.16</var>    Subd. 2. <b>Authority.</b> "Authority" means a rural development financing authority <br/>
<a id="pl.66.17"></a><var>66.17</var>created pursuant to sections 
         <statute_ref>469.142</statute_ref> to 
         <statute_ref>469.151</statute_ref>; a housing and redevelopment authority <br/>
<a id="pl.66.18"></a><var>66.18</var>created pursuant to sections 
         <statute_ref>469.001</statute_ref> to 
         <statute_ref>469.047</statute_ref>; a port authority created pursuant to <br/>
<a id="pl.66.19"></a><var>66.19</var>sections 
         <statute_ref>469.048</statute_ref> to 
         <statute_ref>469.068</statute_ref>; an economic development authority created pursuant to <br/>
<a id="pl.66.20"></a><var>66.20</var>sections 
         <statute_ref>469.090</statute_ref> to 
         <statute_ref>469.108</statute_ref>; a redevelopment agency as defined in sections 
         <statute_ref>469.152</statute_ref> to <br/>
<statute_ref><a id="pl.66.21"></a><var>66.21</var>469.165
         </statute_ref>; a municipality that is administering a development district created pursuant to <br/>
<a id="pl.66.22"></a><var>66.22</var>sections 
         <statute_ref>469.124</statute_ref> to 
         <statute_ref>469.134</statute_ref> or any special law; a municipality that undertakes a project <br/>
<a id="pl.66.23"></a><var>66.23</var>pursuant to sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>, except a town located outside the metropolitan <br/>
<a id="pl.66.24"></a><var>66.24</var>area or with a population of 5,000 persons or less; a municipality that undertakes a project <br/>
<a id="pl.66.25"></a><var>66.25</var>located in an area designated under subdivision 30; or a municipality that exercises the <br/>
<a id="pl.66.26"></a><var>66.26</var>powers of a port authority pursuant to any general or special law.<br/>
<a id="pl.66.27"></a><var>66.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.66.28"></a><var>66.28</var>    Sec. 2. Minnesota Statutes 2010, section 469.174, subdivision 10, is amended to read:<br/>
<a id="pl.66.29"></a><var>66.29</var>    Subd. 10. <b>Redevelopment district.</b> (a) "Redevelopment district" means a type of <br/>
<a id="pl.66.30"></a><var>66.30</var>tax increment financing district consisting of a project, or portions of a project, within <br/>
<a id="pl.66.31"></a><var>66.31</var>which the authority finds by resolution that one or more of the following conditions, <br/>
<a id="pl.66.32"></a><var>66.32</var>reasonably distributed throughout the district, exists:<br/>
<a id="pl.67.1"></a><var>67.1</var>    (1) parcels consisting of 70 percent of the area of the district are occupied by <br/>
<a id="pl.67.2"></a><var>67.2</var>buildings, streets, utilities, paved or gravel parking lots, or other similar structures and <br/>
<a id="pl.67.3"></a><var>67.3</var>more than 50 percent or more of the buildings, not including outbuildings, are structurally <br/>
<a id="pl.67.4"></a><var>67.4</var>substandard to a degree requiring substantial renovation or clearance;<br/>
<a id="pl.67.5"></a><var>67.5</var>    (2) the property consists of vacant, unused, underused, inappropriately used, or <br/>
<a id="pl.67.6"></a><var>67.6</var>infrequently used rail yards, rail storage facilities, or excessive or vacated railroad <br/>
<a id="pl.67.7"></a><var>67.7</var>rights-of-way;<br/>
<a id="pl.67.8"></a><var>67.8</var>    (3) tank facilities, or property whose immediately previous use was for tank <br/>
<a id="pl.67.9"></a><var>67.9</var>facilities, as defined in section 
         <statute_ref>115C.02, subdivision 15</statute_ref>, if the tank facilities:<br/>
<a id="pl.67.10"></a><var>67.10</var>    (i) have or had a capacity of more than 1,000,000 gallons;<br/>
<a id="pl.67.11"></a><var>67.11</var>    (ii) are located adjacent to rail facilities; and<br/>
<a id="pl.67.12"></a><var>67.12</var>    (iii) have been removed or are unused, underused, inappropriately used, or <br/>
<a id="pl.67.13"></a><var>67.13</var>infrequently used; or<br/>
<a id="pl.67.14"></a><var>67.14</var>    (4) a qualifying disaster area, as defined in subdivision 10b.<br/>
<a id="pl.67.15"></a><var>67.15</var>    (b) For purposes of this subdivision, "structurally substandard" shall mean <br/>
<a id="pl.67.16"></a><var>67.16</var>containing defects in structural elements or a combination of deficiencies in essential <br/>
<a id="pl.67.17"></a><var>67.17</var>utilities and facilities, light and ventilation, fire protection including adequate egress, <br/>
<a id="pl.67.18"></a><var>67.18</var>layout and condition of interior partitions, or similar factors, which defects or deficiencies <br/>
<a id="pl.67.19"></a><var>67.19</var>are of sufficient total significance to justify substantial renovation or clearance.<br/>
<a id="pl.67.20"></a><var>67.20</var>    (c) A building is not structurally substandard if it is in compliance with the building <br/>
<a id="pl.67.21"></a><var>67.21</var>code applicable to new buildings or could be modified to satisfy the building code at <br/>
<a id="pl.67.22"></a><var>67.22</var>a cost of less than 15 percent of the cost of constructing a new structure of the same <br/>
<a id="pl.67.23"></a><var>67.23</var>square footage and type on the site. The municipality may find that a building is not <br/>
<a id="pl.67.24"></a><var>67.24</var>disqualified as structurally substandard under the preceding sentence on the basis of <br/>
<a id="pl.67.25"></a><var>67.25</var>reasonably available evidence, such as the size, type, and age of the building, the average <br/>
<a id="pl.67.26"></a><var>67.26</var>cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. The <br/>
<a id="pl.67.27"></a><var>67.27</var>municipality may not make such a determination without an interior inspection of the <br/>
<a id="pl.67.28"></a><var>67.28</var>property, but need not have an independent, expert appraisal prepared of the cost of repair <br/>
<a id="pl.67.29"></a><var>67.29</var>and rehabilitation of the building. An interior inspection of the property is not required, <br/>
<a id="pl.67.30"></a><var>67.30</var>if the municipality finds that (1) the municipality or authority is unable to gain access to <br/>
<a id="pl.67.31"></a><var>67.31</var>the property after using its best efforts to obtain permission from the party that owns or <br/>
<a id="pl.67.32"></a><var>67.32</var>controls the property; and (2) the evidence otherwise supports a reasonable conclusion that <br/>
<a id="pl.67.33"></a><var>67.33</var>the building is structurally substandard. Items of evidence that support such a conclusion <br/>
<a id="pl.67.34"></a><var>67.34</var>include recent fire or police inspections, on-site property tax appraisals or housing <br/>
<a id="pl.67.35"></a><var>67.35</var>inspections, exterior evidence of deterioration, or other similar reliable evidence. Written <br/>
<a id="pl.67.36"></a><var>67.36</var>documentation of the findings and reasons why an interior inspection was not conducted <br/>
<a id="pl.68.1"></a><var>68.1</var>must be made and retained under section 
         <statute_ref>469.175, subdivision 3</statute_ref>, clause (1). Failure of a <br/>
<a id="pl.68.2"></a><var>68.2</var>building to be disqualified under the provisions of this paragraph is a necessary, but not a <br/>
<a id="pl.68.3"></a><var>68.3</var>sufficient, condition to determining that the building is substandard.<br/>
<a id="pl.68.4"></a><var>68.4</var>    (d) A parcel is deemed to be occupied by a structurally substandard building <br/>
<a id="pl.68.5"></a><var>68.5</var>for purposes of the finding under paragraph (a) or by the improvements described in <br/>
<a id="pl.68.6"></a><var>68.6</var>paragraph (e) if all of the following conditions are met:<br/>
<a id="pl.68.7"></a><var>68.7</var>    (1) the parcel was occupied by a substandard building or met the requirements <br/>
<a id="pl.68.8"></a><var>68.8</var>of paragraph (e), as the case may be, within three years of the filing of the request for <br/>
<a id="pl.68.9"></a><var>68.9</var>certification of the parcel as part of the district with the county auditor;<br/>
<a id="pl.68.10"></a><var>68.10</var>    (2) the substandard building or the improvements described in paragraph (e) were <br/>
<a id="pl.68.11"></a><var>68.11</var>demolished or removed by the authority or the demolition or removal was financed by the <br/>
<a id="pl.68.12"></a><var>68.12</var>authority or was done by a developer under a development agreement with the authority;<br/>
<a id="pl.68.13"></a><var>68.13</var>    (3) the authority found by resolution before the demolition or removal that the <br/>
<a id="pl.68.14"></a><var>68.14</var>parcel was occupied by a structurally substandard building or met the requirements of <br/>
<a id="pl.68.15"></a><var>68.15</var>paragraph (e) and that after demolition and clearance the authority intended to include <br/>
<a id="pl.68.16"></a><var>68.16</var>the parcel within a district; and<br/>
<a id="pl.68.17"></a><var>68.17</var>    (4) upon filing the request for certification of the tax capacity of the parcel as part <br/>
<a id="pl.68.18"></a><var>68.18</var>of a district, the authority notifies the county auditor that the original tax capacity of the <br/>
<a id="pl.68.19"></a><var>68.19</var>parcel must be adjusted as provided by section 
         <statute_ref>469.177, subdivision 1</statute_ref>, paragraph (f).<br/>
<a id="pl.68.20"></a><var>68.20</var>    (e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, <br/>
<a id="pl.68.21"></a><var>68.21</var>utilities, paved or gravel parking lots, or other similar structures unless 15 percent of the <br/>
<a id="pl.68.22"></a><var>68.22</var>area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or <br/>
<a id="pl.68.23"></a><var>68.23</var>other similar structures.<br/>
<a id="pl.68.24"></a><var>68.24</var>    (f) For districts consisting of two or more noncontiguous areas, each area must <br/>
<a id="pl.68.25"></a><var>68.25</var>qualify as a redevelopment district under paragraph (a) to be included in the district, and <br/>
<a id="pl.68.26"></a><var>68.26</var>the entire area of the district must satisfy paragraph (a).<br/>
<a id="pl.68.27"></a><var>68.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.68.28"></a><var>68.28</var>    Sec. 3. Minnesota Statutes 2010, section 469.174, is amended by adding a subdivision <br/>
<a id="pl.68.29"></a><var>68.29</var>to read:<br/>
<a id="pl.68.30"></a><var>68.30</var>    Subd. 19a. <b>Soil deficiency district.</b> "Soil deficiency district" means a type of tax <br/>
<a id="pl.68.31"></a><var>68.31</var>increment financing district consisting of a project, or portions of a project, within which <br/>
<a id="pl.68.32"></a><var>68.32</var>the authority finds by resolution that the following conditions exist:<br/>
<a id="pl.68.33"></a><var>68.33</var>(1) parcels consisting of 70 percent of the area of the district contain unusual terrain <br/>
<a id="pl.68.34"></a><var>68.34</var>or soil deficiencies which require substantial filling, grading, or other physical preparation <br/>
<a id="pl.69.1"></a><var>69.1</var>for use and a parcel is eligible for inclusion if at least 50 percent of the area of the parcel <br/>
<a id="pl.69.2"></a><var>69.2</var>requires substantial filling, grading, or other physical preparation for use; and<br/>
<a id="pl.69.3"></a><var>69.3</var>(2) the estimated cost of the physical preparation under clause (1), but excluding <br/>
<a id="pl.69.4"></a><var>69.4</var>costs directly related to roads as defined in section 160.01, and local improvements as <br/>
<a id="pl.69.5"></a><var>69.5</var>described in sections 429.021, subdivision 1, clauses (1) to (7), (11), and (12), and 430.01, <br/>
<a id="pl.69.6"></a><var>69.6</var>exceeds the fair market value of the land before completion of the preparation.<br/>
<a id="pl.69.7"></a><var>69.7</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.69.8"></a><var>69.8</var>certification is made after April 30, 2012.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.69.9"></a><var>69.9</var>    Sec. 4. Minnesota Statutes 2010, section 469.174, is amended by adding a subdivision <br/>
<a id="pl.69.10"></a><var>69.10</var>to read:<br/>
<a id="pl.69.11"></a><var>69.11</var>    Subd. 30. <b>Mining reclamation project area.</b> (a) An authority may designate an <br/>
<a id="pl.69.12"></a><var>69.12</var>area within its jurisdiction as a mining reclamation project area by finding by resolution, <br/>
<a id="pl.69.13"></a><var>69.13</var>that parcels consisting of at least 70 percent of the acreage, excluding street and railroad <br/>
<a id="pl.69.14"></a><var>69.14</var>rights-of-way, are characterized by one or more of the following conditions:<br/>
<a id="pl.69.15"></a><var>69.15</var>(1) peat or other soils with geotechnical deficiencies that impair development of <br/>
<a id="pl.69.16"></a><var>69.16</var>buildings or infrastructure;<br/>
<a id="pl.69.17"></a><var>69.17</var>(2) soils or terrain that requires substantial filling in order to permit the development <br/>
<a id="pl.69.18"></a><var>69.18</var>of buildings or infrastructure;<br/>
<a id="pl.69.19"></a><var>69.19</var>(3) landfills, dumps, or similar deposits of municipal or private waste;<br/>
<a id="pl.69.20"></a><var>69.20</var>(4) quarries or similar resource extraction sites;<br/>
<a id="pl.69.21"></a><var>69.21</var>(5) floodway; and<br/>
<a id="pl.69.22"></a><var>69.22</var>(6) substandard buildings, within the meaning of section 469.174, subdivision 10.<br/>
<a id="pl.69.23"></a><var>69.23</var>(b) For the purposes of paragraph (a), clauses (1) to (5), a parcel is characterized by <br/>
<a id="pl.69.24"></a><var>69.24</var>the relevant condition if at least 50 percent of the area of the parcel contains the relevant <br/>
<a id="pl.69.25"></a><var>69.25</var>condition. For the purposes of paragraph (a), clause (6), a parcel is characterized by <br/>
<a id="pl.69.26"></a><var>69.26</var>substandard buildings if substandard buildings occupy at least 30 percent of the area <br/>
<a id="pl.69.27"></a><var>69.27</var>of the parcel.<br/>
<a id="pl.69.28"></a><var>69.28</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.69.29"></a><var>69.29</var>certification is made after April 30, 2012.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.69.30"></a><var>69.30</var>    Sec. 5. Minnesota Statutes 2010, section 469.175, subdivision 3, is amended to read:<br/>
<a id="pl.69.31"></a><var>69.31</var>    Subd. 3. <b>Municipality approval.</b> (a) A county auditor shall not certify the original <br/>
<a id="pl.69.32"></a><var>69.32</var>net tax capacity of a tax increment financing district until the tax increment financing plan <br/>
<a id="pl.69.33"></a><var>69.33</var>proposed for that district has been approved by the municipality in which the district <br/>
<a id="pl.70.1"></a><var>70.1</var>is located. If an authority that proposes to establish a tax increment financing district <br/>
<a id="pl.70.2"></a><var>70.2</var>and the municipality are not the same, the authority shall apply to the municipality in <br/>
<a id="pl.70.3"></a><var>70.3</var>which the district is proposed to be located and shall obtain the approval of its tax <br/>
<a id="pl.70.4"></a><var>70.4</var>increment financing plan by the municipality before the authority may use tax increment <br/>
<a id="pl.70.5"></a><var>70.5</var>financing. The municipality shall approve the tax increment financing plan only after a <br/>
<a id="pl.70.6"></a><var>70.6</var>public hearing thereon after published notice in a newspaper of general circulation in the <br/>
<a id="pl.70.7"></a><var>70.7</var>municipality at least once not less than ten days nor more than 30 days prior to the date <br/>
<a id="pl.70.8"></a><var>70.8</var>of the hearing. The published notice must include a map of the area of the district from <br/>
<a id="pl.70.9"></a><var>70.9</var>which increments may be collected and, if the project area includes additional area, a map <br/>
<a id="pl.70.10"></a><var>70.10</var>of the project area in which the increments may be expended. The hearing may be held <br/>
<a id="pl.70.11"></a><var>70.11</var>before or after the approval or creation of the project or it may be held in conjunction with <br/>
<a id="pl.70.12"></a><var>70.12</var>a hearing to approve the project.<br/>
<a id="pl.70.13"></a><var>70.13</var>    (b) Before or at the time of approval of the tax increment financing plan, the <br/>
<a id="pl.70.14"></a><var>70.14</var>municipality shall make the following findings, and shall set forth in writing the reasons <br/>
<a id="pl.70.15"></a><var>70.15</var>and supporting facts for each determination:<br/>
<a id="pl.70.16"></a><var>70.16</var>    (1) that the proposed tax increment financing district is a redevelopment district, a <br/>
<a id="pl.70.17"></a><var>70.17</var>renewal or renovation district, a housing district, a soils condition district, soil deficiency <br/>
<a id="pl.70.18"></a><var>70.18</var>district, or an economic development district; if the proposed district is a redevelopment <br/>
<a id="pl.70.19"></a><var>70.19</var>district or a renewal or renovation district, the reasons and supporting facts for the <br/>
<a id="pl.70.20"></a><var>70.20</var>determination that the district meets the criteria of section 
         <statute_ref>469.174, subdivision 10</statute_ref>, <br/>
<a id="pl.70.21"></a><var>70.21</var>paragraph (a), clauses (1) and (2), or subdivision 10a, must be documented in writing <br/>
<a id="pl.70.22"></a><var>70.22</var>and retained and made available to the public by the authority until the district has been <br/>
<a id="pl.70.23"></a><var>70.23</var>terminated;<br/>
<a id="pl.70.24"></a><var>70.24</var>    (2) that, in the opinion of the municipality:<br/>
<a id="pl.70.25"></a><var>70.25</var>    (i) the proposed development or redevelopment would not reasonably be expected to <br/>
<a id="pl.70.26"></a><var>70.26</var>occur solely through private investment within the reasonably foreseeable future; and<br/>
<a id="pl.70.27"></a><var>70.27</var>    (ii) the increased market value of the site that could reasonably be expected to occur <br/>
<a id="pl.70.28"></a><var>70.28</var>without the use of tax increment financing would be less than the increase in the market <br/>
<a id="pl.70.29"></a><var>70.29</var>value estimated to result from the proposed development after subtracting the present <br/>
<a id="pl.70.30"></a><var>70.30</var>value of the projected tax increments for the maximum duration of the district permitted <br/>
<a id="pl.70.31"></a><var>70.31</var>by the plan. The requirements of this item do not apply if the district is a housing district;<br/>
<a id="pl.70.32"></a><var>70.32</var>    (3) that the tax increment financing plan conforms to the general plan for the <br/>
<a id="pl.70.33"></a><var>70.33</var>development or redevelopment of the municipality as a whole;<br/>
<a id="pl.70.34"></a><var>70.34</var>    (4) that the tax increment financing plan will afford maximum opportunity, <br/>
<a id="pl.70.35"></a><var>70.35</var>consistent with the sound needs of the municipality as a whole, for the development or <br/>
<a id="pl.70.36"></a><var>70.36</var>redevelopment of the project by private enterprise;<br/>
<a id="pl.71.1"></a><var>71.1</var>    (5) that the municipality elects the method of tax increment computation set forth in <br/>
<a id="pl.71.2"></a><var>71.2</var>section 
         <statute_ref>469.177, subdivision 3, paragraph (b)</statute_ref>, if applicable; and<br/>
<a id="pl.71.3"></a><var>71.3</var>(6) that for a redevelopment district, renewal and renovation district, soils condition <br/>
<a id="pl.71.4"></a><var>71.4</var>district, or soil deficiency district established by the authority in a mining reclamation <br/>
<a id="pl.71.5"></a><var>71.5</var>project area, the reasons and supporting facts for the determination that the mining <br/>
<a id="pl.71.6"></a><var>71.6</var>reclamation project area meets the requirements under section 469.174, subdivision 30, <br/>
<a id="pl.71.7"></a><var>71.7</var>must be documented in writing and retained and made available to the public by the <br/>
<a id="pl.71.8"></a><var>71.8</var>authority until two years after the district is decertified. These findings must have been <br/>
<a id="pl.71.9"></a><var>71.9</var>made and documented no more than ten years before approval of the tax increment <br/>
<a id="pl.71.10"></a><var>71.10</var>financing plan for the district.<br/>
<a id="pl.71.11"></a><var>71.11</var>    (c) When the municipality and the authority are not the same, the municipality shall <br/>
<a id="pl.71.12"></a><var>71.12</var>approve or disapprove the tax increment financing plan within 60 days of submission by <br/>
<a id="pl.71.13"></a><var>71.13</var>the authority. When the municipality and the authority are not the same, the municipality <br/>
<a id="pl.71.14"></a><var>71.14</var>may not amend or modify a tax increment financing plan except as proposed by the <br/>
<a id="pl.71.15"></a><var>71.15</var>authority pursuant to subdivision 4. Once approved, the determination of the authority <br/>
<a id="pl.71.16"></a><var>71.16</var>to undertake the project through the use of tax increment financing and the resolution of <br/>
<a id="pl.71.17"></a><var>71.17</var>the governing body shall be conclusive of the findings therein and of the public need for <br/>
<a id="pl.71.18"></a><var>71.18</var>the financing.<br/>
<a id="pl.71.19"></a><var>71.19</var>    (d) For a district that is subject to the requirements of paragraph (b), clause (2), <br/>
<a id="pl.71.20"></a><var>71.20</var>item (ii), the municipality's statement of reasons and supporting facts must include all of <br/>
<a id="pl.71.21"></a><var>71.21</var>the following:<br/>
<a id="pl.71.22"></a><var>71.22</var>    (1) an estimate of the amount by which the market value of the site will increase <br/>
<a id="pl.71.23"></a><var>71.23</var>without the use of tax increment financing;<br/>
<a id="pl.71.24"></a><var>71.24</var>    (2) an estimate of the increase in the market value that will result from the <br/>
<a id="pl.71.25"></a><var>71.25</var>development or redevelopment to be assisted with tax increment financing; and<br/>
<a id="pl.71.26"></a><var>71.26</var>    (3) the present value of the projected tax increments for the maximum duration of <br/>
<a id="pl.71.27"></a><var>71.27</var>the district permitted by the tax increment financing plan.<br/>
<a id="pl.71.28"></a><var>71.28</var>    (e) For purposes of this subdivision, "site" means the parcels on which the <br/>
<a id="pl.71.29"></a><var>71.29</var>development or redevelopment to be assisted with tax increment financing will be located.<br/>
<a id="pl.71.30"></a><var>71.30</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.71.31"></a><var>71.31</var>certification is made after April 30, 2012.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.71.32"></a><var>71.32</var>    Sec. 6. Minnesota Statutes 2010, section 469.176, subdivision 1b, is amended to read:<br/>
<a id="pl.71.33"></a><var>71.33</var>    Subd. 1b. <b>Duration limits; terms.</b> (a) No tax increment shall in any event be <br/>
<a id="pl.71.34"></a><var>71.34</var>paid to the authority:<br/>
<a id="pl.72.1"></a><var>72.1</var>(1) after 15 years after receipt by the authority of the first increment for a renewal <br/>
<a id="pl.72.2"></a><var>72.2</var>and renovation district;<br/>
<a id="pl.72.3"></a><var>72.3</var>(2) after 20 years after receipt by the authority of the first increment for a soils <br/>
<a id="pl.72.4"></a><var>72.4</var>condition district or a soil deficiency district;<br/>
<a id="pl.72.5"></a><var>72.5</var>(3) after eight years after receipt by the authority of the first increment for an <br/>
<a id="pl.72.6"></a><var>72.6</var>economic development district;<br/>
<a id="pl.72.7"></a><var>72.7</var>(4) for a housing district, a compact development district, or a redevelopment <br/>
<a id="pl.72.8"></a><var>72.8</var>district, after 25 years from the date of receipt by the authority of the first increment.<br/>
<a id="pl.72.9"></a><var>72.9</var>(b) For purposes of determining a duration limit under this subdivision or subdivision <br/>
<a id="pl.72.10"></a><var>72.10</var>1e that is based on the receipt of an increment, any increments from taxes payable in <br/>
<a id="pl.72.11"></a><var>72.11</var>the year in which the district terminates shall be paid to the authority. This paragraph <br/>
<a id="pl.72.12"></a><var>72.12</var>does not affect a duration limit calculated from the date of approval of the tax increment <br/>
<a id="pl.72.13"></a><var>72.13</var>financing plan or based on the recovery of costs or to a duration limit under subdivision <br/>
<a id="pl.72.14"></a><var>72.14</var>1c. This paragraph does not supersede the restrictions on payment of delinquent taxes in <br/>
<a id="pl.72.15"></a><var>72.15</var>subdivision 1f.<br/>
<a id="pl.72.16"></a><var>72.16</var>(c) An action by the authority to waive or decline to accept an increment has no <br/>
<a id="pl.72.17"></a><var>72.17</var>effect for purposes of computing a duration limit based on the receipt of increment under <br/>
<a id="pl.72.18"></a><var>72.18</var>this subdivision or any other provision of law. The authority is deemed to have received an <br/>
<a id="pl.72.19"></a><var>72.19</var>increment for any year in which it waived or declined to accept an increment, regardless <br/>
<a id="pl.72.20"></a><var>72.20</var>of whether the increment was paid to the authority.<br/>
<a id="pl.72.21"></a><var>72.21</var>(d) Receipt by a hazardous substance subdistrict of an increment as a result of a <br/>
<a id="pl.72.22"></a><var>72.22</var>reduction in original net tax capacity under section 
         <statute_ref>469.174, subdivision 7</statute_ref>, paragraph <br/>
<a id="pl.72.23"></a><var>72.23</var>(b), does not constitute receipt of increment by the overlying district for the purpose of <br/>
<a id="pl.72.24"></a><var>72.24</var>calculating the duration limit under this section.<br/>
<a id="pl.72.25"></a><var>72.25</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.72.26"></a><var>72.26</var>certification is made after April 30, 2012.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.72.27"></a><var>72.27</var>    Sec. 7. Minnesota Statutes 2010, section 469.176, subdivision 4b, is amended to read:<br/>
<a id="pl.72.28"></a><var>72.28</var>    Subd. 4b. <b>Soils condition districts.</b> Revenue derived from Tax increment from a <br/>
<a id="pl.72.29"></a><var>72.29</var>soils condition district may be used only to (1) acquire parcels on which the improvements <br/>
<a id="pl.72.30"></a><var>72.30</var>described in clause (2) will occur; (2) pay for the cost of removal or remedial action; and <br/>
<a id="pl.72.31"></a><var>72.31</var>(3) pay for the administrative expenses of the authority allocable to the district, including <br/>
<a id="pl.72.32"></a><var>72.32</var>the cost of preparation of the development action response plan. For a soils condition <br/>
<a id="pl.72.33"></a><var>72.33</var>district located in a mining reclamation project area, tax increments may also be expended <br/>
<a id="pl.72.34"></a><var>72.34</var>on the additional cost of public improvements directly caused by the removal or remedial <br/>
<a id="pl.72.35"></a><var>72.35</var>action and located within the mining reclamation project area.<br/>
<a id="pl.73.1"></a><var>73.1</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.73.2"></a><var>73.2</var>certification is made after April 30, 2012.<br/>
<br/>
<a id="bill.4.8.0"></a><a id="pl.73.3"></a><var>73.3</var>    Sec. 8. Minnesota Statutes 2011 Supplement, section 469.176, subdivision 4c, is <br/>
<a id="pl.73.4"></a><var>73.4</var>amended to read:<br/>
<a id="pl.73.5"></a><var>73.5</var>    Subd. 4c. <b>Economic development districts.</b> (a) Revenue derived from tax <br/>
<a id="pl.73.6"></a><var>73.6</var>increment from an economic development district may not be used to provide <br/>
<a id="pl.73.7"></a><var>73.7</var>improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form <br/>
<a id="pl.73.8"></a><var>73.8</var>to developments consisting of buildings and ancillary facilities, if more than 15 percent <br/>
<a id="pl.73.9"></a><var>73.9</var>of the buildings and facilities (determined on the basis of square footage) are used for a <br/>
<a id="pl.73.10"></a><var>73.10</var>purpose other than:<br/>
<a id="pl.73.11"></a><var>73.11</var>    (1) the manufacturing or production of tangible personal property, including <br/>
<a id="pl.73.12"></a><var>73.12</var>processing resulting in the change in condition of the property;<br/>
<a id="pl.73.13"></a><var>73.13</var>    (2) warehousing, storage, and distribution of tangible personal property, excluding <br/>
<a id="pl.73.14"></a><var>73.14</var>retail sales;<br/>
<a id="pl.73.15"></a><var>73.15</var>    (3) research and development related to the activities listed in clause (1) or (2);<br/>
<a id="pl.73.16"></a><var>73.16</var>    (4) telemarketing if that activity is the exclusive use of the property;<br/>
<a id="pl.73.17"></a><var>73.17</var>    (5) tourism facilities;<br/>
<a id="pl.73.18"></a><var>73.18</var>    (6) qualified border retail facilities; or<br/>
<a id="pl.73.19"></a><var>73.19</var>    (7) space necessary for and related to the activities listed in clauses (1) to (6).<br/>
<a id="pl.73.20"></a><var>73.20</var>    (b) Notwithstanding the provisions of this subdivision, revenues derived from tax <br/>
<a id="pl.73.21"></a><var>73.21</var>increment from an economic development district may be used to provide improvements, <br/>
<a id="pl.73.22"></a><var>73.22</var>loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000 <br/>
<a id="pl.73.23"></a><var>73.23</var>square feet of any separately owned commercial facility located within the municipal <br/>
<a id="pl.73.24"></a><var>73.24</var>jurisdiction of a small city, if the revenues derived from increments are spent only to <br/>
<a id="pl.73.25"></a><var>73.25</var>assist the facility directly or for administrative expenses, the assistance is necessary to <br/>
<a id="pl.73.26"></a><var>73.26</var>develop the facility, and all of the increments, except those for administrative expenses, <br/>
<a id="pl.73.27"></a><var>73.27</var>are spent only for activities within the district.<br/>
<a id="pl.73.28"></a><var>73.28</var>    (c) A city is a small city for purposes of this subdivision if the city was a small city <br/>
<a id="pl.73.29"></a><var>73.29</var>in the year in which the request for certification was made and applies for the rest of <br/>
<a id="pl.73.30"></a><var>73.30</var>the duration of the district, regardless of whether the city qualifies or ceases to qualify <br/>
<a id="pl.73.31"></a><var>73.31</var>as a small city.<br/>
<a id="pl.73.32"></a><var>73.32</var>    (d) Notwithstanding the requirements of paragraph (a) and the finding requirements <br/>
<a id="pl.73.33"></a><var>73.33</var>of section 
         <statute_ref>469.174, subdivision 12</statute_ref>, tax increments from an economic development district <br/>
<a id="pl.73.34"></a><var>73.34</var>may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or <br/>
<a id="pl.74.1"></a><var>74.1</var>assistance in any form to developments consisting of buildings and ancillary facilities, if <br/>
<a id="pl.74.2"></a><var>74.2</var>all the following conditions are met:<br/>
<a id="pl.74.3"></a><var>74.3</var>    (1) the municipality finds that the project will create or retain jobs in this state, <br/>
<a id="pl.74.4"></a><var>74.4</var>including construction jobs, and that construction of the project would not have <br/>
<a id="pl.74.5"></a><var>74.5</var>commenced before July 1, 2012 January 1, 2014, without the authority providing <br/>
<a id="pl.74.6"></a><var>74.6</var>assistance under the provisions of this paragraph;<br/>
<a id="pl.74.7"></a><var>74.7</var>    (2) construction of the project begins no later than July 1, 2012 January 1, 2014;<br/>
<a id="pl.74.8"></a><var>74.8</var>    (3) the request for certification of the district is made no later than June 30, 2012 <br/>
<a id="pl.74.9"></a><var>74.9</var>December 31, 2013; and<br/>
<a id="pl.74.10"></a><var>74.10</var>    (4) for development of housing under this paragraph, the construction must begin <br/>
<a id="pl.74.11"></a><var>74.11</var>before January 1, 2012.<br/>
<a id="pl.74.12"></a><var>74.12</var>    The provisions of this paragraph may not be used to assist housing that is developed <br/>
<a id="pl.74.13"></a><var>74.13</var>to qualify under section 
         <statute_ref>469.1761, subdivision 2</statute_ref> or 3, or similar requirements of other law, <br/>
<a id="pl.74.14"></a><var>74.14</var>if construction of the project begins later than July 1, 2011.<br/>
<a id="pl.74.15"></a><var>74.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.9.0"></a><a id="pl.74.16"></a><var>74.16</var>    Sec. 9. Minnesota Statutes 2011 Supplement, section 469.176, subdivision 4m, is <br/>
<a id="pl.74.17"></a><var>74.17</var>amended to read:<br/>
<a id="pl.74.18"></a><var>74.18</var>    Subd. 4m. <b>Temporary authority to stimulate construction.</b> (a) Notwithstanding <br/>
<a id="pl.74.19"></a><var>74.19</var>the restrictions in any other subdivision of this section or any other law to the contrary, <br/>
<a id="pl.74.20"></a><var>74.20</var>except the requirement to pay bonds to which the increments are pledged and the <br/>
<a id="pl.74.21"></a><var>74.21</var>provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or <br/>
<a id="pl.74.22"></a><var>74.22</var>more of the following purposes:<br/>
<a id="pl.74.23"></a><var>74.23</var>    (1) to provide improvements, loans, interest rate subsidies, or assistance in any <br/>
<a id="pl.74.24"></a><var>74.24</var>form to private development consisting of the construction or substantial rehabilitation of <br/>
<a id="pl.74.25"></a><var>74.25</var>buildings and ancillary facilities, if doing so will create or retain jobs in this state, including <br/>
<a id="pl.74.26"></a><var>74.26</var>construction jobs, and that the construction commences before July 1, 2012 January 1, <br/>
<a id="pl.74.27"></a><var>74.27</var>2014, and would not have commenced before that date without the assistance; or<br/>
<a id="pl.74.28"></a><var>74.28</var>    (2) to make an equity or similar investment in a corporation, partnership, or limited <br/>
<a id="pl.74.29"></a><var>74.29</var>liability company that the authority determines is necessary to make construction of a <br/>
<a id="pl.74.30"></a><var>74.30</var>development that meets the requirements of clause (1) financially feasible.<br/>
<a id="pl.74.31"></a><var>74.31</var>    (b) The authority may undertake actions under the authority of this subdivision only <br/>
<a id="pl.74.32"></a><var>74.32</var>after approval by the municipality of a written spending plan that specifically authorizes <br/>
<a id="pl.74.33"></a><var>74.33</var>the authority to take the actions. The municipality shall approve the spending plan only <br/>
<a id="pl.74.34"></a><var>74.34</var>after a public hearing after published notice in a newspaper of general circulation in <br/>
<a id="pl.75.1"></a><var>75.1</var>the municipality at least once, not less than ten days nor more than 30 days prior to the <br/>
<a id="pl.75.2"></a><var>75.2</var>date of the hearing.<br/>
<a id="pl.75.3"></a><var>75.3</var>    (c) The authority to spend tax increments under this subdivision expires December <br/>
<a id="pl.75.4"></a><var>75.4</var>31, 2012 June 30, 2014.<br/>
<a id="pl.75.5"></a><var>75.5</var>    (d) For a development consisting of housing, the authority to spend tax increments <br/>
<a id="pl.75.6"></a><var>75.6</var>under this subdivision expires December 31, 2011, and construction must commence <br/>
<a id="pl.75.7"></a><var>75.7</var>before July 1, 2011, except the authority to spend tax increments on market rate housing <br/>
<a id="pl.75.8"></a><var>75.8</var>developments under this subdivision expires July 31, 2012, and construction must <br/>
<a id="pl.75.9"></a><var>75.9</var>commence before January 1, 2012.<br/>
<a id="pl.75.10"></a><var>75.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.75.11"></a><var>75.11</var>and applies to all tax increment financing districts, regardless of when the request for <br/>
<a id="pl.75.12"></a><var>75.12</var>certification was made.<br/>
<br/>
<a id="bill.4.10.0"></a><a id="pl.75.13"></a><var>75.13</var>    Sec. 10. Minnesota Statutes 2010, section 469.176, is amended by adding a subdivision <br/>
<a id="pl.75.14"></a><var>75.14</var>to read:<br/>
<a id="pl.75.15"></a><var>75.15</var>    Subd. 4n. <b>Soil deficiency district.</b> Tax increments from a soil deficiency district <br/>
<a id="pl.75.16"></a><var>75.16</var>may only be used to pay for the following costs for activities located within the mining <br/>
<a id="pl.75.17"></a><var>75.17</var>reclamation project area:<br/>
<a id="pl.75.18"></a><var>75.18</var>(1) acquisition of parcels on which the improvements described in clause (2) will <br/>
<a id="pl.75.19"></a><var>75.19</var>occur;<br/>
<a id="pl.75.20"></a><var>75.20</var>(2) the cost of correcting the unusual terrain or soil deficiencies and the additional <br/>
<a id="pl.75.21"></a><var>75.21</var>cost of installing public improvements directly caused by the deficiencies;<br/>
<a id="pl.75.22"></a><var>75.22</var>(3) administrative expenses of the authority allocable to the district; and<br/>
<a id="pl.75.23"></a><var>75.23</var>(4) costs described in subdivision 4j for the district, if these payments do not exceed <br/>
<a id="pl.75.24"></a><var>75.24</var>25 percent of the tax increment from the district.<br/>
<a id="pl.75.25"></a><var>75.25</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.75.26"></a><var>75.26</var>certification is made after April 30, 2012.<br/>
<br/>
<a id="bill.4.11.0"></a><a id="pl.75.27"></a><var>75.27</var>    Sec. 11. Minnesota Statutes 2011 Supplement, section 469.1763, subdivision 2, <br/>
<a id="pl.75.28"></a><var>75.28</var>is amended to read:<br/>
<a id="pl.75.29"></a><var>75.29</var>    Subd. 2. <b>Expenditures outside district.</b> (a) For each tax increment financing <br/>
<a id="pl.75.30"></a><var>75.30</var>district, an amount equal to at least 75 percent of the total revenue derived from tax <br/>
<a id="pl.75.31"></a><var>75.31</var>increments paid by properties in the district must be expended on activities in the district <br/>
<a id="pl.75.32"></a><var>75.32</var>or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities <br/>
<a id="pl.75.33"></a><var>75.33</var>in the district or to pay, or secure payment of, debt service on credit enhanced bonds. <br/>
<a id="pl.76.1"></a><var>76.1</var>For districts, other than redevelopment districts for which the request for certification <br/>
<a id="pl.76.2"></a><var>76.2</var>was made after June 30, 1995, the in-district percentage for purposes of the preceding <br/>
<a id="pl.76.3"></a><var>76.3</var>sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax <br/>
<a id="pl.76.4"></a><var>76.4</var>increments paid by properties in the district may be expended, through a development fund <br/>
<a id="pl.76.5"></a><var>76.5</var>or otherwise, on activities outside of the district but within the defined geographic area of <br/>
<a id="pl.76.6"></a><var>76.6</var>the project except to pay, or secure payment of, debt service on credit enhanced bonds. <br/>
<a id="pl.76.7"></a><var>76.7</var>For districts, other than redevelopment districts for which the request for certification was <br/>
<a id="pl.76.8"></a><var>76.8</var>made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is <br/>
<a id="pl.76.9"></a><var>76.9</var>20 percent. The revenue derived from tax increments for the district that are expended on <br/>
<a id="pl.76.10"></a><var>76.10</var>costs under section 
         <statute_ref>469.176, subdivision 4h</statute_ref>, paragraph (b), may be deducted first before <br/>
<a id="pl.76.11"></a><var>76.11</var>calculating the percentages that must be expended within and without the district.<br/>
<a id="pl.76.12"></a><var>76.12</var>    (b) In the case of a housing district, a housing project, as defined in section 
         <statute_ref>469.174, <br/>
<a id="pl.76.13"></a><var>76.13</var>subdivision 11
         </statute_ref>, is an activity in the district.<br/>
<a id="pl.76.14"></a><var>76.14</var>    (c) All administrative expenses are for activities outside of the district, except that <br/>
<a id="pl.76.15"></a><var>76.15</var>if the only expenses for activities outside of the district under this subdivision are for <br/>
<a id="pl.76.16"></a><var>76.16</var>the purposes described in paragraph (d), administrative expenses will be considered as <br/>
<a id="pl.76.17"></a><var>76.17</var>expenditures for activities in the district.<br/>
<a id="pl.76.18"></a><var>76.18</var>    (d) The authority may elect, in the tax increment financing plan for the district, <br/>
<a id="pl.76.19"></a><var>76.19</var>to increase by up to ten percentage points the permitted amount of expenditures for <br/>
<a id="pl.76.20"></a><var>76.20</var>activities located outside the geographic area of the district under paragraph (a). As <br/>
<a id="pl.76.21"></a><var>76.21</var>permitted by section 
         <statute_ref>469.176, subdivision 4k</statute_ref>, the expenditures, including the permitted <br/>
<a id="pl.76.22"></a><var>76.22</var>expenditures under paragraph (a), need not be made within the geographic area of the <br/>
<a id="pl.76.23"></a><var>76.23</var>project. Expenditures that meet the requirements of this paragraph are legally permitted <br/>
<a id="pl.76.24"></a><var>76.24</var>expenditures of the district, notwithstanding section 
         <statute_ref>469.176, subdivisions 4b, 4c, 4d, and <br/>
<a id="pl.76.25"></a><var>76.25</var>4j
         </statute_ref>. To qualify for the increase under this paragraph, the expenditures must:<br/>
<a id="pl.76.26"></a><var>76.26</var>    (1) be used exclusively to assist housing that<br/>
<a id="pl.76.27"></a><var>76.27</var>(i) meets the requirement for a qualified low-income building, as that term is used in <br/>
<a id="pl.76.28"></a><var>76.28</var>section 42 of the Internal Revenue Code; and<br/>
<a id="pl.76.29"></a><var>76.29</var>    (2) (ii) does not exceed the qualified basis of the housing, as defined under section <br/>
<a id="pl.76.30"></a><var>76.30</var>42(c) of the Internal Revenue Code, less the amount of any credit allowed under section <br/>
<a id="pl.76.31"></a><var>76.31</var>42 of the Internal Revenue Code; and<br/>
<a id="pl.76.32"></a><var>76.32</var>    (3) be (iii) is used to:<br/>
<a id="pl.76.33"></a><var>76.33</var>    (i) (A) acquire and prepare the site of the housing;<br/>
<a id="pl.76.34"></a><var>76.34</var>    (ii) (B) acquire, construct, or rehabilitate the housing; or<br/>
<a id="pl.76.35"></a><var>76.35</var>    (iii) (C) make public improvements directly related to the housing; or<br/>
<a id="pl.76.36"></a><var>76.36</var>(4) (2) be used to develop housing:<br/>
<a id="pl.77.1"></a><var>77.1</var>(i) if the market value of the housing  prior to demolition or rehabilitation does <br/>
<a id="pl.77.2"></a><var>77.2</var>not exceed the lesser of:<br/>
<a id="pl.77.3"></a><var>77.3</var>(A) 150 percent of the average market value of single-family homes in that <br/>
<a id="pl.77.4"></a><var>77.4</var>municipality; or<br/>
<a id="pl.77.5"></a><var>77.5</var>(B) $200,000 for municipalities located in the metropolitan area, as defined in <br/>
<a id="pl.77.6"></a><var>77.6</var>section 
         <statute_ref>473.121</statute_ref>, or $125,000 for all other municipalities; and<br/>
<a id="pl.77.7"></a><var>77.7</var>(ii) if the expenditures are used to pay the cost of site acquisition, relocation, <br/>
<a id="pl.77.8"></a><var>77.8</var>demolition of existing structures, site preparation, rehabilitation, and pollution abatement <br/>
<a id="pl.77.9"></a><var>77.9</var>on one or more parcels, if provided that the parcel contains a residence containing is <br/>
<a id="pl.77.10"></a><var>77.10</var>occupied by one to four family dwelling units that has been vacant for six or more months <br/>
<a id="pl.77.11"></a><var>77.11</var>and is in foreclosure as defined in section 
<statute_ref>325N.10, subdivision 7</statute_ref>, but without regard to <br/>
<a id="pl.77.12"></a><var>77.12</var>whether the residence is the owner's principal residence, and only after the redemption <br/>
<a id="pl.77.13"></a><var>77.13</var>period stated in the notice provided under section 
<statute_ref>580.06</statute_ref> has expired with respect to which <br/>
<a id="pl.77.14"></a><var>77.14</var>a mortgage was foreclosed under chapter 580, 581, or 582; any applicable redemption <br/>
<a id="pl.77.15"></a><var>77.15</var>period has expired without redemption; and the authority or developer enters into a <br/>
<a id="pl.77.16"></a><var>77.16</var>purchase agreement to acquire the parcel no earlier than 30 days after expiration of the <br/>
<a id="pl.77.17"></a><var>77.17</var>redemption period.<br/>
<a id="pl.77.18"></a><var>77.18</var>    (e) For a district created within a biotechnology and health sciences industry zone <br/>
<a id="pl.77.19"></a><var>77.19</var>as defined in section 
         <statute_ref>469.330, subdivision 6</statute_ref>, or for an existing district located within <br/>
<a id="pl.77.20"></a><var>77.20</var>such a zone, tax increment derived from such a district may be expended outside of the <br/>
<a id="pl.77.21"></a><var>77.21</var>district but within the zone only for expenditures required for the construction of public <br/>
<a id="pl.77.22"></a><var>77.22</var>infrastructure necessary to support the activities of the zone, land acquisition, and other <br/>
<a id="pl.77.23"></a><var>77.23</var>redevelopment costs as defined in section 
         <statute_ref>469.176, subdivision 4j</statute_ref>. These expenditures are <br/>
<a id="pl.77.24"></a><var>77.24</var>considered as expenditures for activities within the district.<br/>
<a id="pl.77.25"></a><var>77.25</var>(f) The authority under paragraph (d), clause (4) (2), expires on December 31, 2016. <br/>
<a id="pl.77.26"></a><var>77.26</var>Increments may continue to be expended under this authority after that date, if they are <br/>
<a id="pl.77.27"></a><var>77.27</var>used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph <br/>
<a id="pl.77.28"></a><var>77.28</var>(a), if December 31, 2016, is considered to be the last date of the five-year period after <br/>
<a id="pl.77.29"></a><var>77.29</var>certification under that provision.<br/>
<a id="pl.77.30"></a><var>77.30</var>(g) The authority may elect, in the tax increment financing plan, for a district located <br/>
<a id="pl.77.31"></a><var>77.31</var>in a mining reclamation area that "activities within the district" under paragraph (a) <br/>
<a id="pl.77.32"></a><var>77.32</var>includes activities within the geographic area of the mining reclamation area.<br/>
<a id="pl.77.33"></a><var>77.33</var><b>EFFECTIVE DATE.</b>This section is effective for any district that is subject to <br/>
<a id="pl.77.34"></a><var>77.34</var>the provisions of Minnesota Statutes, section 469.1763, regardless of when the request <br/>
<a id="pl.77.35"></a><var>77.35</var>for certification was made, except the amendment adding paragraph (g) is effective for <br/>
<a id="pl.77.36"></a><var>77.36</var>districts for which the request for certification was made after April 30, 2012.<br/>
<br/>
<a id="bill.4.12.0"></a><a id="pl.78.1"></a><var>78.1</var>    Sec. 12. Minnesota Statutes 2010, section 469.1763, subdivision 3, is amended to read:<br/>
<a id="pl.78.2"></a><var>78.2</var>    Subd. 3. <b>Five-year rule.</b> (a) Revenues derived from tax increments are considered <br/>
<a id="pl.78.3"></a><var>78.3</var>to have been expended on an activity within the district under subdivision 2 only if one <br/>
<a id="pl.78.4"></a><var>78.4</var>of the following occurs:<br/>
<a id="pl.78.5"></a><var>78.5</var>(1) before or within five years after certification of the district, the revenues are <br/>
<a id="pl.78.6"></a><var>78.6</var>actually paid to a third party with respect to the activity;<br/>
<a id="pl.78.7"></a><var>78.7</var>(2) bonds, the proceeds of which must be used to finance the activity, are issued and <br/>
<a id="pl.78.8"></a><var>78.8</var>sold to a third party before or within five years after certification, the revenues are spent <br/>
<a id="pl.78.9"></a><var>78.9</var>to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, <br/>
<a id="pl.78.10"></a><var>78.10</var>reasonably expected to be spent before the end of the later of (i) the five-year period, or <br/>
<a id="pl.78.11"></a><var>78.11</var>(ii) a reasonable temporary period within the meaning of the use of that term under section <br/>
<a id="pl.78.12"></a><var>78.12</var>148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve <br/>
<a id="pl.78.13"></a><var>78.13</var>or replacement fund;<br/>
<a id="pl.78.14"></a><var>78.14</var>(3) binding contracts with a third party are entered into for performance of the <br/>
<a id="pl.78.15"></a><var>78.15</var>activity before or within five years after certification of the district and the revenues are <br/>
<a id="pl.78.16"></a><var>78.16</var>spent under the contractual obligation;<br/>
<a id="pl.78.17"></a><var>78.17</var>(4) costs with respect to the activity are paid before or within five years after <br/>
<a id="pl.78.18"></a><var>78.18</var>certification of the district and the revenues are spent to reimburse a party for payment <br/>
<a id="pl.78.19"></a><var>78.19</var>of the costs, including interest on unreimbursed costs; or<br/>
<a id="pl.78.20"></a><var>78.20</var>(5) expenditures are made for housing purposes as permitted by subdivision 2, <br/>
<a id="pl.78.21"></a><var>78.21</var>paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted <br/>
<a id="pl.78.22"></a><var>78.22</var>by subdivision 2, paragraph (e).<br/>
<a id="pl.78.23"></a><var>78.23</var>(b) For purposes of this subdivision, bonds include subsequent refunding bonds if <br/>
<a id="pl.78.24"></a><var>78.24</var>the original refunded bonds meet the requirements of paragraph (a), clause (2).<br/>
<a id="pl.78.25"></a><var>78.25</var>(c) For a redevelopment district or a renewal and renovation district certified after <br/>
<a id="pl.78.26"></a><var>78.26</var>June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph <br/>
<a id="pl.78.27"></a><var>78.27</var>(a) are extended to ten years after certification of the district. This extension is provided <br/>
<a id="pl.78.28"></a><var>78.28</var>primarily to accommodate delays in development activities due to unanticipated economic <br/>
<a id="pl.78.29"></a><var>78.29</var>circumstances.<br/>
<a id="pl.78.30"></a><var>78.30</var>(d) If the authority so elects in the tax increment financing plan for a redevelopment <br/>
<a id="pl.78.31"></a><var>78.31</var>district, renewal and renovation district, soils condition district, or soil deficiency district <br/>
<a id="pl.78.32"></a><var>78.32</var>located in a mining reclamation project area, the five-year periods described in paragraph <br/>
<a id="pl.78.33"></a><var>78.33</var>(a) do not apply.<br/>
<a id="pl.78.34"></a><var>78.34</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.78.35"></a><var>78.35</var>certification is made after April 30, 2012.<br/>
<br/>
<a id="bill.4.13.0"></a><a id="pl.79.1"></a><var>79.1</var>    Sec. 13. Minnesota Statutes 2010, section 469.1763, subdivision 4, is amended to read:<br/>
<a id="pl.79.2"></a><var>79.2</var>    Subd. 4. <b>Use of revenues for decertification.</b> (a) In each year beginning with the <br/>
<a id="pl.79.3"></a><var>79.3</var>sixth year following certification of the district, if the applicable in-district percent of the <br/>
<a id="pl.79.4"></a><var>79.4</var>revenues derived from tax increments paid by properties in the district exceeds the amount <br/>
<a id="pl.79.5"></a><var>79.5</var>of expenditures that have been made for costs permitted under subdivision 3, an amount <br/>
<a id="pl.79.6"></a><var>79.6</var>equal to the difference between the in-district percent of the revenues derived from tax <br/>
<a id="pl.79.7"></a><var>79.7</var>increments paid by properties in the district and the amount of expenditures that have <br/>
<a id="pl.79.8"></a><var>79.8</var>been made for costs permitted under subdivision 3 must be used and only used to pay or <br/>
<a id="pl.79.9"></a><var>79.9</var>defease the following or be set aside to pay the following:<br/>
<a id="pl.79.10"></a><var>79.10</var>(1) outstanding bonds, as defined in subdivision 3, paragraphs (a), clause (2), and (b);<br/>
<a id="pl.79.11"></a><var>79.11</var>(2) contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4);<br/>
<a id="pl.79.12"></a><var>79.12</var>(3) credit enhanced bonds to which the revenues derived from tax increments are <br/>
<a id="pl.79.13"></a><var>79.13</var>pledged, but only to the extent that revenues of the district for which the credit enhanced <br/>
<a id="pl.79.14"></a><var>79.14</var>bonds were issued are insufficient to pay the bonds and to the extent that the increments <br/>
<a id="pl.79.15"></a><var>79.15</var>from the applicable pooling percent share for the district are insufficient; or<br/>
<a id="pl.79.16"></a><var>79.16</var>(4) the amount provided by the tax increment financing plan to be paid under <br/>
<a id="pl.79.17"></a><var>79.17</var>subdivision 2, paragraphs (b), (d), and (e).<br/>
<a id="pl.79.18"></a><var>79.18</var>(b) The district must be decertified and the pledge of tax increment discharged <br/>
<a id="pl.79.19"></a><var>79.19</var>when the outstanding bonds have been defeased and when sufficient money has been set <br/>
<a id="pl.79.20"></a><var>79.20</var>aside to pay, based on the increment to be collected through the end of the calendar year, <br/>
<a id="pl.79.21"></a><var>79.21</var>the following amounts:<br/>
<a id="pl.79.22"></a><var>79.22</var>(1) contractual obligations as defined in subdivision 3, paragraph (a), clauses (3) <br/>
<a id="pl.79.23"></a><var>79.23</var>and (4);<br/>
<a id="pl.79.24"></a><var>79.24</var>(2) the amount specified in the tax increment financing plan for activities qualifying <br/>
<a id="pl.79.25"></a><var>79.25</var>under subdivision 2, paragraph (b), that have not been funded with the proceeds of bonds <br/>
<a id="pl.79.26"></a><var>79.26</var>qualifying under paragraph (a), clause (1); and<br/>
<a id="pl.79.27"></a><var>79.27</var>(3) the additional expenditures permitted by the tax increment financing plan for <br/>
<a id="pl.79.28"></a><var>79.28</var>housing activities under an election under subdivision 2, paragraph (d), that have not been <br/>
<a id="pl.79.29"></a><var>79.29</var>funded with the proceeds of bonds qualifying under paragraph (a), clause (1).<br/>
<a id="pl.79.30"></a><var>79.30</var>(c) If the authority so elects in the tax increment financing plan for a redevelopment <br/>
<a id="pl.79.31"></a><var>79.31</var>district, renewal and renovation district, soils condition district, or soil deficiency district <br/>
<a id="pl.79.32"></a><var>79.32</var>located in a mining reclamation project area, the provisions of this section do not apply.<br/>
<a id="pl.79.33"></a><var>79.33</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.79.34"></a><var>79.34</var>certification is made after April 30, 2012.<br/>
<br/>
<a id="bill.4.14.0"></a><a id="pl.80.1"></a><var>80.1</var>    Sec. 14. Laws 2008, chapter 366, article 5, section 34, as amended by Laws 2009, <br/>
<a id="pl.80.2"></a><var>80.2</var>chapter 88, article 5, section 11, is amended to read:<br/>
<a id="pl.80.3"></a><var>80.3</var>    Sec. 34. <b>CITY OF OAKDALE; ORIGINAL TAX CAPACITY. </b><br/>
<a id="pl.80.4"></a><var>80.4</var>    Subdivision 1. <b>Original tax capacity election.</b> (a) The provisions of this section <br/>
<a id="pl.80.5"></a><var>80.5</var>apply to redevelopment tax increment financing districts created by the Housing and <br/>
<a id="pl.80.6"></a><var>80.6</var>Redevelopment Authority in and for the city of Oakdale in the areas comprised of <br/>
<a id="pl.80.7"></a><var>80.7</var>the parcels with the following parcel identification numbers: (1) 3102921320053; <br/>
<a id="pl.80.8"></a><var>80.8</var>3102921320054; 3102921320055; 3102921320056; 3102921320057; 3102921320058; <br/>
<a id="pl.80.9"></a><var>80.9</var>3102921320062; 3102921320063; 3102921320059; 3102921320060; 3102921320061; <br/>
<a id="pl.80.10"></a><var>80.10</var>3102921330005; and 3102921330004; and (2) 2902921330001 and 2902921330005.<br/>
<a id="pl.80.11"></a><var>80.11</var>    (b) For a district subject to this section, the Housing and Redevelopment Authority <br/>
<a id="pl.80.12"></a><var>80.12</var>may, when requesting certification of the original tax capacity of the district under <br/>
<a id="pl.80.13"></a><var>80.13</var>Minnesota Statutes, section 
         <statute_ref>469.177</statute_ref>, elect to have the original tax capacity of the district <br/>
<a id="pl.80.14"></a><var>80.14</var>be certified as the tax capacity of the land.<br/>
<a id="pl.80.15"></a><var>80.15</var>    (c) The authority to request certification of a district under this section expires on <br/>
<a id="pl.80.16"></a><var>80.16</var>July 1, 2013 December 31, 2017.<br/>
<a id="pl.80.17"></a><var>80.17</var>    Subd. 2. <b>Parcels deemed occupied.</b> (a) Parcel numbers 3102921320054, <br/>
<a id="pl.80.18"></a><var>80.18</var>3102921320055, 3102921320056, 3102921320057, 3102921320061, and 3102921330004 <br/>
<a id="pl.80.19"></a><var>80.19</var>are deemed to meet the requirements of Minnesota Statutes, section 469.174, subdivision <br/>
<a id="pl.80.20"></a><var>80.20</var>10, paragraph (d), notwithstanding any contrary provisions of that paragraph, if the <br/>
<a id="pl.80.21"></a><var>80.21</var>following conditions are met:<br/>
<a id="pl.80.22"></a><var>80.22</var>(1) a building located on any part of each of the specified parcels was demolished <br/>
<a id="pl.80.23"></a><var>80.23</var>after the authority adopted a resolution under Minnesota Statutes, section 469.174, <br/>
<a id="pl.80.24"></a><var>80.24</var>subdivision 10, paragraph (d), clause (3);<br/>
<a id="pl.80.25"></a><var>80.25</var>(2) the building was removed either by the authority, by a developer under a <br/>
<a id="pl.80.26"></a><var>80.26</var>development agreement with the authority, or by the owner of the property without <br/>
<a id="pl.80.27"></a><var>80.27</var>entering into a development agreement with the authority; and<br/>
<a id="pl.80.28"></a><var>80.28</var>(3) the request for certification of the parcel as part of a district is filed with the <br/>
<a id="pl.80.29"></a><var>80.29</var>county auditor by December 31, 2017.<br/>
<a id="pl.80.30"></a><var>80.30</var>(b) The provisions of subdivision 1 apply to allow an election by the authority <br/>
<a id="pl.80.31"></a><var>80.31</var>for the parcels deemed occupied under paragraph (a), notwithstanding the provisions <br/>
<a id="pl.80.32"></a><var>80.32</var>of Minnesota Statutes, sections 469.174, subdivision 10, paragraph (d), and 469.177, <br/>
<a id="pl.80.33"></a><var>80.33</var>subdivision 1, paragraph (f).<br/>
<a id="pl.80.34"></a><var>80.34</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.80.35"></a><var>80.35</var>body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021, <br/>
<a id="pl.80.36"></a><var>80.36</var>subdivision 3.<br/>
<br/>
<a id="bill.4.15.0"></a><a id="pl.81.1"></a><var>81.1</var>    Sec. 15. <b>CITY OF BLOOMINGTON; TAX INCREMENT FINANCING.</b><br/>
<a id="pl.81.2"></a><var>81.2</var>Notwithstanding Minnesota Statutes, section 469.176, or Laws 1996, chapter 464, <br/>
<a id="pl.81.3"></a><var>81.3</var>article 1, section 8, or any other law to the contrary, the city of Bloomington and its port <br/>
<a id="pl.81.4"></a><var>81.4</var>authority may extend the duration limits of tax increment financing district No. 1-G, <br/>
<a id="pl.81.5"></a><var>81.5</var>containing the former Met Center property, including Lindau Lane and that portion of tax <br/>
<a id="pl.81.6"></a><var>81.6</var>increment financing district No. 1-C north of the existing building line on Lot 1, Block 1, <br/>
<a id="pl.81.7"></a><var>81.7</var>Mall of America 7th Addition, exclusive of Lots 2 and 3, through December 31, 2038.<br/>
<a id="pl.81.8"></a><var>81.8</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance of the governing <br/>
<a id="pl.81.9"></a><var>81.9</var>bodies of the city of Bloomington, Hennepin County, and Independent School District <br/>
<a id="pl.81.10"></a><var>81.10</var>No. 271, Bloomington, with the requirements of Minnesota Statutes, sections 469.1782, <br/>
<a id="pl.81.11"></a><var>81.11</var>subdivision 2, and 645.021, subdivision 3.<br/>
<br/>
<a id="bill.4.16.0"></a><a id="pl.81.12"></a><var>81.12</var>    Sec. 16. <b>CITY OF BLOOMINGTON; TAX INCREMENT FINANCING </b><br/>
<a id="pl.81.13"></a><var>81.13</var><b>EXTENSION.</b><br/>
<a id="pl.81.14"></a><var>81.14</var>Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any other <br/>
<a id="pl.81.15"></a><var>81.15</var>law to the contrary, the city of Bloomington and its port authority may extend the duration <br/>
<a id="pl.81.16"></a><var>81.16</var>limits of Tax Increment Financing District No. 1-I, containing the Bloomington Central <br/>
<a id="pl.81.17"></a><var>81.17</var>Station property for a period through December 31, 2038.<br/>
<a id="pl.81.18"></a><var>81.18</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance of the governing <br/>
<a id="pl.81.19"></a><var>81.19</var>body of the city of Bloomington with the requirements of Minnesota Statutes, sections <br/>
<a id="pl.81.20"></a><var>81.20</var>469.1782, subdivision 2, and 645.021, subdivision 3.<br/>
<br/>
<a id="bill.4.17.0"></a><a id="pl.81.21"></a><var>81.21</var>    Sec. 17. <b>DAKOTA COUNTY COMMUNITY DEVELOPMENT AUTHORITY; </b><br/>
<a id="pl.81.22"></a><var>81.22</var><b>TAX INCREMENT FINANCING DISTRICT.</b><br/>
<a id="pl.81.23"></a><var>81.23</var>    Subdivision 1. <b>Authorization.</b> Notwithstanding the provisions of any other law, <br/>
<a id="pl.81.24"></a><var>81.24</var>the Dakota County Community Development Authority may establish a redevelopment <br/>
<a id="pl.81.25"></a><var>81.25</var>tax increment financing district comprised of the properties that (1) were included in the <br/>
<a id="pl.81.26"></a><var>81.26</var>CDA 10 Robert and South Street district in the city of West St. Paul, and (2) were not <br/>
<a id="pl.81.27"></a><var>81.27</var>decertified before July 1, 2012. The district created under this section terminates no later <br/>
<a id="pl.81.28"></a><var>81.28</var>than December 31, 2027.<br/>
<a id="pl.81.29"></a><var>81.29</var>    Subd. 2. <b>Special rules.</b> The requirements for qualifying a redevelopment district <br/>
<a id="pl.81.30"></a><var>81.30</var>under Minnesota Statutes, section 469.174, subdivision 10, do not apply to parcels located <br/>
<a id="pl.81.31"></a><var>81.31</var>within the district. Minnesota Statutes, section 469.176, subdivisions 4g, paragraph (c), <br/>
<a id="pl.82.1"></a><var>82.1</var>clause (1), item (ii), 4j, and 4l, do not apply to the district. The original tax capacity <br/>
<a id="pl.82.2"></a><var>82.2</var>of the district is $93,239.<br/>
<a id="pl.82.3"></a><var>82.3</var>    Subd. 3. <b>Authorized expenditures.</b> Tax increment from the district may be <br/>
<a id="pl.82.4"></a><var>82.4</var>expended to pay for any eligible activities authorized by Minnesota Statutes, chapter <br/>
<a id="pl.82.5"></a><var>82.5</var>469, within the redevelopment area that includes the district. All such expenditures are <br/>
<a id="pl.82.6"></a><var>82.6</var>deemed to be activities within the district under Minnesota Statutes, section 469.1763, <br/>
<a id="pl.82.7"></a><var>82.7</var>subdivisions 2, 3, and 4.<br/>
<a id="pl.82.8"></a><var>82.8</var>    Subd. 4. <b>Adjusted net tax capacity.</b> The captured tax capacity of the district must <br/>
<a id="pl.82.9"></a><var>82.9</var>be included in the adjusted net tax capacity of the city, county, and school district for the <br/>
<a id="pl.82.10"></a><var>82.10</var>purposes of determining local government aid, education aid, and county program aid. <br/>
<a id="pl.82.11"></a><var>82.11</var>The county auditor shall report to the commissioner of revenue the amount of the captured <br/>
<a id="pl.82.12"></a><var>82.12</var>tax capacity for the district at the time the assessment abstracts are filed.<br/>
<a id="pl.82.13"></a><var>82.13</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.82.14"></a><var>82.14</var>body of the Dakota County Community Development Authority with the requirements of <br/>
<a id="pl.82.15"></a><var>82.15</var>Minnesota Statutes, section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.4.18.0"></a><a id="pl.82.16"></a><var>82.16</var>    Sec. 18. <b>CITY OF BROOKLYN PARK; TAX INCREMENT FINANCING; </b><br/>
<a id="pl.82.17"></a><var>82.17</var><b>SPECIAL RULES.</b><br/>
<a id="pl.82.18"></a><var>82.18</var>The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that <br/>
<a id="pl.82.19"></a><var>82.19</var>activities must be undertaken within a five-year period from the date of certification of a tax <br/>
<a id="pl.82.20"></a><var>82.20</var>increment financing district, is considered to be met for Tax Increment Financing District <br/>
<a id="pl.82.21"></a><var>82.21</var>No. 23 in the city of Brooklyn Park if the activities were undertaken by July 1, 2014.<br/>
<a id="pl.82.22"></a><var>82.22</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.82.23"></a><var>82.23</var>body of the city of Brooklyn Park with the requirements of Minnesota Statutes, section <br/>
<a id="pl.82.24"></a><var>82.24</var>645.021, subdivision 3.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="bill.5.1.0"></a><a id="pl.82.27"></a><var>82.27</var>    Section 1. Minnesota Statutes 2010, section 289A.10, is amended by adding a <br/>
<a id="pl.82.28"></a><var>82.28</var>subdivision to read:<br/>
<a id="pl.82.29"></a><var>82.29</var>    Subd. 1a. <b>Recapture tax return required.</b> If a disposition or cessation as provided <br/>
<a id="pl.82.30"></a><var>82.30</var>by section 291.03, subdivision 11, paragraph (a), has occurred, the qualified heir, as <br/>
<a id="pl.82.31"></a><var>82.31</var>defined under section 291.03, subdivision 8, paragraph (c), or personal representative of <br/>
<a id="pl.82.32"></a><var>82.32</var>the decedent's estate must submit a recapture tax return to the commissioner.<br/>
<a id="pl.83.1"></a><var>83.1</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br/>
<a id="pl.83.2"></a><var>83.2</var>June 30, 2011.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.83.3"></a><var>83.3</var>    Sec. 2. Minnesota Statutes 2010, section 289A.12, is amended by adding a subdivision <br/>
<a id="pl.83.4"></a><var>83.4</var>to read:<br/>
<a id="pl.83.5"></a><var>83.5</var>    Subd. 18. <b>Returns by qualified heirs.</b> Within 24 months and within 36 months <br/>
<a id="pl.83.6"></a><var>83.6</var>after a decedent's death, a qualified heir, as defined under section 291.03, subdivision 8, <br/>
<a id="pl.83.7"></a><var>83.7</var>paragraph (c), must file a return with the commissioner relating to the qualified property <br/>
<a id="pl.83.8"></a><var>83.8</var>received from the decedent.<br/>
<a id="pl.83.9"></a><var>83.9</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br/>
<a id="pl.83.10"></a><var>83.10</var>June 30, 2011.<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.83.11"></a><var>83.11</var>    Sec. 3. Minnesota Statutes 2010, section 289A.18, is amended by adding a subdivision <br/>
<a id="pl.83.12"></a><var>83.12</var>to read:<br/>
<a id="pl.83.13"></a><var>83.13</var>    Subd. 3a. <b>Recapture tax return.</b> A recapture tax return is due within six months <br/>
<a id="pl.83.14"></a><var>83.14</var>after the date of the disposition or cessation as provided by section 291.03, subdivision <br/>
<a id="pl.83.15"></a><var>83.15</var>11, paragraph (a).<br/>
<a id="pl.83.16"></a><var>83.16</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br/>
<a id="pl.83.17"></a><var>83.17</var>June 30, 2011.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.83.18"></a><var>83.18</var>    Sec. 4. Minnesota Statutes 2010, section 289A.20, subdivision 3, is amended to read:<br/>
<a id="pl.83.19"></a><var>83.19</var>    Subd. 3. <b>Estate tax.</b> Taxes imposed by chapter 291 section 291.03, subdivision 1, <br/>
<a id="pl.83.20"></a><var>83.20</var>take effect at and upon the death of the person whose estate is subject to taxation and are <br/>
<a id="pl.83.21"></a><var>83.21</var>due and payable on or before the expiration of nine months from that death.<br/>
<a id="pl.83.22"></a><var>83.22</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br/>
<a id="pl.83.23"></a><var>83.23</var>June 30, 2011.<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.83.24"></a><var>83.24</var>    Sec. 5. Minnesota Statutes 2010, section 289A.20, is amended by adding a subdivision <br/>
<a id="pl.83.25"></a><var>83.25</var>to read:<br/>
<a id="pl.83.26"></a><var>83.26</var>    Subd. 3a. <b>Recapture tax.</b> Taxes imposed by section 291.03, subdivision 11, <br/>
<a id="pl.83.27"></a><var>83.27</var>paragraph (b), are due and payable on or before the expiration of six months from the date <br/>
<a id="pl.83.28"></a><var>83.28</var>of disposition or cessation as provided by section 291.03, subdivision 11, paragraph (a).<br/>
<a id="pl.83.29"></a><var>83.29</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br/>
<a id="pl.83.30"></a><var>83.30</var>June 30, 2011.<br/>
<br/>
<a id="bill.5.6.0"></a><a id="pl.84.1"></a><var>84.1</var>    Sec. 6. Minnesota Statutes 2011 Supplement, section 291.03, subdivision 8, is <br/>
<a id="pl.84.2"></a><var>84.2</var>amended to read:<br/>
<a id="pl.84.3"></a><var>84.3</var>    Subd. 8. <b>Definitions.</b> (a) For purposes of this section, the following terms have the <br/>
<a id="pl.84.4"></a><var>84.4</var>meanings given in this subdivision.<br/>
<a id="pl.84.5"></a><var>84.5</var>(b) "Family member" means a family member as defined in section 2032A(e)(2) of <br/>
<a id="pl.84.6"></a><var>84.6</var>the Internal Revenue Code or a trust whose present beneficiaries are all family members as <br/>
<a id="pl.84.7"></a><var>84.7</var>defined in section 2032A(e)(2) of the Internal Revenue Code.<br/>
<a id="pl.84.8"></a><var>84.8</var>(c) "Qualified heir" means a family member who acquired qualified property from <br/>
<a id="pl.84.9"></a><var>84.9</var>upon the death of the decedent and satisfies the requirement under subdivision 9, clause <br/>
<a id="pl.84.10"></a><var>84.10</var>(6) (7), or subdivision 10, clause (4) (5), for the property.<br/>
<a id="pl.84.11"></a><var>84.11</var>(d) "Qualified property" means qualified small business property under subdivision <br/>
<a id="pl.84.12"></a><var>84.12</var>9 and qualified farm property under subdivision 10.<br/>
<a id="pl.84.13"></a><var>84.13</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br/>
<a id="pl.84.14"></a><var>84.14</var>June 30, 2011.<br/>
<br/>
<a id="bill.5.7.0"></a><a id="pl.84.15"></a><var>84.15</var>    Sec. 7. Minnesota Statutes 2011 Supplement, section 291.03, subdivision 9, is <br/>
<a id="pl.84.16"></a><var>84.16</var>amended to read:<br/>
<a id="pl.84.17"></a><var>84.17</var>    Subd. 9. <b>Qualified small business property.</b> Property satisfying all of the following <br/>
<a id="pl.84.18"></a><var>84.18</var>requirements is qualified small business property:<br/>
<a id="pl.84.19"></a><var>84.19</var>(1) The value of the property was included in the federal adjusted taxable estate.<br/>
<a id="pl.84.20"></a><var>84.20</var>(2) The property consists of the assets of a trade or business or shares of stock or <br/>
<a id="pl.84.21"></a><var>84.21</var>other ownership interests in a corporation or other entity engaged in a trade or business. <br/>
<a id="pl.84.22"></a><var>84.22</var>The decedent or the decedent's spouse must have materially participated in the trade or <br/>
<a id="pl.84.23"></a><var>84.23</var>business within the meaning of section 469 of the Internal Revenue Code during the <br/>
<a id="pl.84.24"></a><var>84.24</var>taxable year that ended before the date of the decedent's death. Shares of stock in a <br/>
<a id="pl.84.25"></a><var>84.25</var>corporation or an ownership interest in another type of entity do not qualify under this <br/>
<a id="pl.84.26"></a><var>84.26</var>subdivision if the shares or ownership interests are traded on a public stock exchange at <br/>
<a id="pl.84.27"></a><var>84.27</var>any time during the three-year period ending on the decedent's date of death. For purposes <br/>
<a id="pl.84.28"></a><var>84.28</var>of this subdivision, an ownership interest includes the interest the decedent is deemed to <br/>
<a id="pl.84.29"></a><var>84.29</var>own under sections 2036, 2037, and 2038 of the Internal Revenue Code.<br/>
<a id="pl.84.30"></a><var>84.30</var>(3) During the decedent's taxable year that ended before the decedent's death, the <br/>
<a id="pl.84.31"></a><var>84.31</var>trade or business must not have been a passive activity within the meaning of section <br/>
<a id="pl.84.32"></a><var>84.32</var>469(c) of the Internal Revenue Code and the decedent or the decedent's spouse must have <br/>
<a id="pl.84.33"></a><var>84.33</var>materially participated in the trade or business within the meaning of section 469(h) of the <br/>
<a id="pl.84.34"></a><var>84.34</var>Internal Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and <br/>
<a id="pl.84.35"></a><var>84.35</var>any other provision provided by Treasury Department regulation that substitutes material <br/>
<a id="pl.85.1"></a><var>85.1</var>participation in prior taxable years for material participation in the taxable year that ended <br/>
<a id="pl.85.2"></a><var>85.2</var>before the decedent's death.<br/>
<a id="pl.85.3"></a><var>85.3</var>(3) (4) The gross annual sales of the trade or business were $10,000,000 or less for <br/>
<a id="pl.85.4"></a><var>85.4</var>the last taxable year that ended before the date of the death of the decedent.<br/>
<a id="pl.85.5"></a><var>85.5</var>(4) (5) The property does not consist of cash or, cash equivalents, publicly traded <br/>
<a id="pl.85.6"></a><var>85.6</var>securities, or assets not used in the operation of the trade or business. For property <br/>
<a id="pl.85.7"></a><var>85.7</var>consisting of shares of stock or other ownership interests in an entity, the amount value of <br/>
<a id="pl.85.8"></a><var>85.8</var>cash or, cash equivalents, publicly traded securities, or assets not used in the operation of <br/>
<a id="pl.85.9"></a><var>85.9</var>the trade or business held by the corporation or other entity must be deducted from the <br/>
<a id="pl.85.10"></a><var>85.10</var>value of the property qualifying under this subdivision in proportion to the decedent's <br/>
<a id="pl.85.11"></a><var>85.11</var>share of ownership of the entity on the date of death.<br/>
<a id="pl.85.12"></a><var>85.12</var>(5) (6) The decedent continuously owned the property, including property the <br/>
<a id="pl.85.13"></a><var>85.13</var>decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue <br/>
<a id="pl.85.14"></a><var>85.14</var>Code, for the three-year period ending on the date of death of the decedent. In the case of <br/>
<a id="pl.85.15"></a><var>85.15</var>a sole proprietor, if the property replaced similar property within the three-year period, <br/>
<a id="pl.85.16"></a><var>85.16</var>the replacement property will be treated as having been owned for the three-year period <br/>
<a id="pl.85.17"></a><var>85.17</var>ending on the date of death of the decedent.<br/>
<a id="pl.85.18"></a><var>85.18</var>(6) A family member continuously uses the property in the operation of the trade or <br/>
<a id="pl.85.19"></a><var>85.19</var>business for three years following the date of death of the decedent.<br/>
<a id="pl.85.20"></a><var>85.20</var>(7) For three years following the date of death of the decedent, the trade or business <br/>
<a id="pl.85.21"></a><var>85.21</var>is not a passive activity within the meaning of section 469(c) of the Internal Revenue <br/>
<a id="pl.85.22"></a><var>85.22</var>Code and a family member materially participates in the operation of the trade or business <br/>
<a id="pl.85.23"></a><var>85.23</var>within the meaning of section 469(h) of the Internal Revenue Code, excluding section <br/>
<a id="pl.85.24"></a><var>85.24</var>469(h)(3) of the Internal Revenue Code and any other provision provided by Treasury <br/>
<a id="pl.85.25"></a><var>85.25</var>Department regulation that substitutes material participation in prior taxable years for <br/>
<a id="pl.85.26"></a><var>85.26</var>material participation in the three years following the date of death of the decedent.<br/>
<a id="pl.85.27"></a><var>85.27</var>(7) (8) The estate and the qualified heir elect to treat the property as qualified small <br/>
<a id="pl.85.28"></a><var>85.28</var>business property and agree, in the form prescribed by the commissioner, to pay the <br/>
<a id="pl.85.29"></a><var>85.29</var>recapture tax under subdivision 11, if applicable.<br/>
<a id="pl.85.30"></a><var>85.30</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br/>
<a id="pl.85.31"></a><var>85.31</var>June 30, 2011.<br/>
<br/>
<a id="bill.5.8.0"></a><a id="pl.85.32"></a><var>85.32</var>    Sec. 8. Minnesota Statutes 2011 Supplement, section 291.03, subdivision 10, is <br/>
<a id="pl.85.33"></a><var>85.33</var>amended to read:<br/>
<a id="pl.85.34"></a><var>85.34</var>    Subd. 10. <b>Qualified farm property.</b> Property satisfying all of the following <br/>
<a id="pl.85.35"></a><var>85.35</var>requirements is qualified farm property:<br/>
<a id="pl.86.1"></a><var>86.1</var>(1) The value of the property was included in the federal adjusted taxable estate.<br/>
<a id="pl.86.2"></a><var>86.2</var>(2) The property consists of agricultural land as defined by section 500.24, <br/>
<a id="pl.86.3"></a><var>86.3</var>subdivision 2, paragraph (g), and owned by a farm meeting the requirements of person <br/>
<a id="pl.86.4"></a><var>86.4</var>or entity that is not excluded from owning agricultural land by section 
         <statute_ref>500.24</statute_ref>, and was <br/>
<a id="pl.86.5"></a><var>86.5</var>classified for property tax purposes as the homestead of the decedent or the decedent's <br/>
<a id="pl.86.6"></a><var>86.6</var>spouse or both under section 
<statute_ref>273.124</statute_ref>, and as class 2a property under section 
<statute_ref>273.13, <br/>
<a id="pl.86.7"></a><var>86.7</var>subdivision 23
</statute_ref>.<br/>
<a id="pl.86.8"></a><var>86.8</var>(3) For property taxes payable in the year of decedent's death, the decedent's interest <br/>
<a id="pl.86.9"></a><var>86.9</var>in the property was classified as the homestead of the decedent or the decedent's spouse or <br/>
<a id="pl.86.10"></a><var>86.10</var>both under section 273.124, and as class 2a property under section 273.13, subdivision 23.<br/>
<a id="pl.86.11"></a><var>86.11</var>(4) The decedent continuously owned the property, including property the decedent <br/>
<a id="pl.86.12"></a><var>86.12</var>is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for <br/>
<a id="pl.86.13"></a><var>86.13</var>the three-year period ending on the date of death of the decedent either by ownership of <br/>
<a id="pl.86.14"></a><var>86.14</var>the agricultural land or pursuant to holding an interest in an entity that is not excluded <br/>
<a id="pl.86.15"></a><var>86.15</var>from owning agricultural land under section 500.24.<br/>
<a id="pl.86.16"></a><var>86.16</var>(4) A family member continuously uses the property in the operation of the trade or <br/>
<a id="pl.86.17"></a><var>86.17</var>business (5) The property is classified for property tax purposes as class 2a property under <br/>
<a id="pl.86.18"></a><var>86.18</var>section 273.13, subdivision 23, for three years following the date of death of the decedent.<br/>
<a id="pl.86.19"></a><var>86.19</var>(5) (6) The estate and the qualified heir elect to treat the property as qualified farm <br/>
<a id="pl.86.20"></a><var>86.20</var>property and agree, in a form prescribed by the commissioner, to pay the recapture tax <br/>
<a id="pl.86.21"></a><var>86.21</var>under subdivision 11, if applicable.<br/>
<a id="pl.86.22"></a><var>86.22</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br/>
<a id="pl.86.23"></a><var>86.23</var>June 30, 2011.<br/>
<br/>
<a id="bill.5.9.0"></a><a id="pl.86.24"></a><var>86.24</var>    Sec. 9. Minnesota Statutes 2011 Supplement, section 291.03, subdivision 11, is <br/>
<a id="pl.86.25"></a><var>86.25</var>amended to read:<br/>
<a id="pl.86.26"></a><var>86.26</var>    Subd. 11. <b>Recapture tax.</b> (a) If, within three years after the decedent's death and <br/>
<a id="pl.86.27"></a><var>86.27</var>before the death of the qualified heir, the qualified heir disposes of any interest in the <br/>
<a id="pl.86.28"></a><var>86.28</var>qualified property, other than by a disposition to a family member or qualifying entity, <br/>
<a id="pl.86.29"></a><var>86.29</var>or a family member ceases to use the qualified property which was acquired or passed <br/>
<a id="pl.86.30"></a><var>86.30</var>from the decedent satisfy the requirement under subdivision 9, clause (7); or 10, clause <br/>
<a id="pl.86.31"></a><var>86.31</var>(5), an additional estate tax is imposed on the property. In the case of a sole proprietor, if <br/>
<a id="pl.86.32"></a><var>86.32</var>the qualified heir replaces qualified small business property excluded under subdivision 9 <br/>
<a id="pl.86.33"></a><var>86.33</var>with similar property, then the qualified heir will not be treated as having disposed of an <br/>
<a id="pl.86.34"></a><var>86.34</var>interest in the qualified property.<br/>
<a id="pl.87.1"></a><var>87.1</var>(b) The amount of the additional tax equals the amount of the exclusion claimed with <br/>
<a id="pl.87.2"></a><var>87.2</var>respect to the qualified interest disposed of by the estate under subdivision 8, paragraph <br/>
<a id="pl.87.3"></a><var>87.3</var>(d), multiplied by 16 percent.<br/>
<a id="pl.87.4"></a><var>87.4</var>(c) The additional tax under this subdivision is due on the day which is six months <br/>
<a id="pl.87.5"></a><var>87.5</var>after the date of the disposition or cessation in paragraph (a).<br/>
<a id="pl.87.6"></a><var>87.6</var>(c) For purposes of paragraph (a), "qualifying entity" means a corporation or other <br/>
<a id="pl.87.7"></a><var>87.7</var>entity that is owned by a family member or family members and, for qualified farm <br/>
<a id="pl.87.8"></a><var>87.8</var>property, that is not excluded from owning agricultural land under section 500.24.<br/>
<a id="pl.87.9"></a><var>87.9</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br/>
<a id="pl.87.10"></a><var>87.10</var>June 30, 2011.<br/>
<br/>
<a id="bill.6.0.0"></a>

<a id="bill.6.1.0"></a><a id="pl.87.13"></a><var>87.13</var>    Section 1. Minnesota Statutes 2010, section 373.40, subdivision 1, is amended to read:<br/>
<a id="pl.87.14"></a><var>87.14</var>    Subdivision 1. <b>Definitions.</b> For purposes of this section, the following terms have <br/>
<a id="pl.87.15"></a><var>87.15</var>the meanings given.<br/>
<a id="pl.87.16"></a><var>87.16</var>(a) "Bonds" means an obligation as defined under section 
         <statute_ref>475.51</statute_ref>.<br/>
<a id="pl.87.17"></a><var>87.17</var>(b) "Capital improvement" means acquisition or betterment of public lands, <br/>
<a id="pl.87.18"></a><var>87.18</var>buildings, or other improvements within the county for the purpose of a county courthouse, <br/>
<a id="pl.87.19"></a><var>87.19</var>administrative building, health or social service facility, correctional facility, jail, law <br/>
<a id="pl.87.20"></a><var>87.20</var>enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads <br/>
<a id="pl.87.21"></a><var>87.21</var>and bridges, public works facilities, fairgrounds buildings, and records and data storage <br/>
<a id="pl.87.22"></a><var>87.22</var>facilities, and the acquisition of development rights in the form of conservation easements <br/>
<a id="pl.87.23"></a><var>87.23</var>under chapter 84C. An improvement must have an expected useful life of five years or <br/>
<a id="pl.87.24"></a><var>87.24</var>more to qualify. "Capital improvement" does not include a recreation or sports facility <br/>
<a id="pl.87.25"></a><var>87.25</var>building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility, <br/>
<a id="pl.87.26"></a><var>87.26</var>swimming pool, exercise room or health spa), unless the building is part of an outdoor <br/>
<a id="pl.87.27"></a><var>87.27</var>park facility and is incidental to the primary purpose of outdoor recreation.<br/>
<a id="pl.87.28"></a><var>87.28</var>(c) "Metropolitan county" means a county located in the seven-county metropolitan <br/>
<a id="pl.87.29"></a><var>87.29</var>area as defined in section 
         <statute_ref>473.121</statute_ref> or a county with a population of 90,000 or more.<br/>
<a id="pl.87.30"></a><var>87.30</var>(d) "Population" means the population established by the most recent of the <br/>
<a id="pl.87.31"></a><var>87.31</var>following (determined as of the date the resolution authorizing the bonds was adopted):<br/>
<a id="pl.87.32"></a><var>87.32</var>(1) the federal decennial census,<br/>
<a id="pl.87.33"></a><var>87.33</var>(2) a special census conducted under contract by the United States Bureau of the <br/>
<a id="pl.87.34"></a><var>87.34</var>Census, or<br/>
<a id="pl.88.1"></a><var>88.1</var>(3) a population estimate made either by the Metropolitan Council or by the state <br/>
<a id="pl.88.2"></a><var>88.2</var>demographer under section 
         <statute_ref>4A.02</statute_ref>.<br/>
<a id="pl.88.3"></a><var>88.3</var>(e) "Qualified indoor ice arena" means a facility that meets the requirements of <br/>
<a id="pl.88.4"></a><var>88.4</var>section 
         <statute_ref>373.43</statute_ref>.<br/>
<a id="pl.88.5"></a><var>88.5</var>(f) "Tax capacity" means total taxable market value, but does not include captured <br/>
<a id="pl.88.6"></a><var>88.6</var>market value.<br/>
<br/>
<a id="bill.6.2.0"></a><a id="pl.88.7"></a><var>88.7</var>    Sec. 2. Minnesota Statutes 2010, section 373.40, subdivision 2, is amended to read:<br/>
<a id="pl.88.8"></a><var>88.8</var>    Subd. 2. <b>Application of election requirement.</b> (a) Bonds issued by a county <br/>
<a id="pl.88.9"></a><var>88.9</var>to finance capital improvements under an approved capital improvement plan are not <br/>
<a id="pl.88.10"></a><var>88.10</var>subject to the election requirements of section 
         <statute_ref>375.18</statute_ref> or 
         <statute_ref>475.58</statute_ref>. The bonds must be <br/>
<a id="pl.88.11"></a><var>88.11</var>approved by vote of at least three-fifths of the members of the county board. In the case <br/>
<a id="pl.88.12"></a><var>88.12</var>of a metropolitan county, the bonds must be approved by vote of at least two-thirds of <br/>
<a id="pl.88.13"></a><var>88.13</var>the members of the county board.<br/>
<a id="pl.88.14"></a><var>88.14</var>(b) Before issuance of bonds qualifying under this section, the county must publish <br/>
<a id="pl.88.15"></a><var>88.15</var>a notice of its intention to issue the bonds and the date and time of a hearing to obtain <br/>
<a id="pl.88.16"></a><var>88.16</var>public comment on the matter. The notice must be published in the official newspaper <br/>
<a id="pl.88.17"></a><var>88.17</var>of the county or in a newspaper of general circulation in the county. The notice must be <br/>
<a id="pl.88.18"></a><var>88.18</var>published at least 14, but not more than 28, days before the date of the hearing.<br/>
<a id="pl.88.19"></a><var>88.19</var>(c) A county may issue the bonds only upon obtaining the approval of a majority of <br/>
<a id="pl.88.20"></a><var>88.20</var>the voters voting on the question of issuing the obligations, if a petition requesting a vote <br/>
<a id="pl.88.21"></a><var>88.21</var>on the issuance is signed by voters equal to five percent of the votes cast in the county in <br/>
<a id="pl.88.22"></a><var>88.22</var>the last county general election and is filed with the county auditor within 30 days after <br/>
<a id="pl.88.23"></a><var>88.23</var>the public hearing. The commissioner of revenue shall prepare a suggested form of the <br/>
<a id="pl.88.24"></a><var>88.24</var>question to be presented at the election If the county elects not to submit the question to <br/>
<a id="pl.88.25"></a><var>88.25</var>the voters, the county shall not propose the issuance of bonds under this section for the <br/>
<a id="pl.88.26"></a><var>88.26</var>same purpose and in the same amount for a period of 365 days from the date of receipt <br/>
<a id="pl.88.27"></a><var>88.27</var>of the petition. If the question of issuing the bonds is submitted and not approved by the <br/>
<a id="pl.88.28"></a><var>88.28</var>voters, the provisions of section 475.58, subdivision 1a, apply.<br/>
<br/>
<a id="bill.6.3.0"></a><a id="pl.88.29"></a><var>88.29</var>    Sec. 3. Minnesota Statutes 2010, section 373.40, subdivision 4, is amended to read:<br/>
<a id="pl.88.30"></a><var>88.30</var>    Subd. 4. <b>Limitations on amount.</b> A county may not issue bonds under this section <br/>
<a id="pl.88.31"></a><var>88.31</var>if the maximum amount of principal and interest to become due in any year on all the <br/>
<a id="pl.88.32"></a><var>88.32</var>outstanding bonds issued pursuant to this section (including the bonds to be issued) will <br/>
<a id="pl.88.33"></a><var>88.33</var>equal or exceed 0.12 percent of taxable market value of property in the county. Calculation <br/>
<a id="pl.88.34"></a><var>88.34</var>of the limit must be made using the taxable market value for the taxes payable year in <br/>
<a id="pl.89.1"></a><var>89.1</var>which the obligations are issued and sold, provided that, for purposes of determining <br/>
<a id="pl.89.2"></a><var>89.2</var>the principal and interest due in any year, the county may deduct the amount of interest <br/>
<a id="pl.89.3"></a><var>89.3</var>expected to be paid or reimbursed to the county by the federal government in that year on <br/>
<a id="pl.89.4"></a><var>89.4</var>any outstanding bonds or the bonds to be issued. This section does not limit the authority <br/>
<a id="pl.89.5"></a><var>89.5</var>to issue bonds under any other special or general law.<br/>
<br/>
<a id="bill.6.4.0"></a><a id="pl.89.6"></a><var>89.6</var>    Sec. 4. Minnesota Statutes 2010, section 474A.02, subdivision 23a, is amended to read:<br/>
<a id="pl.89.7"></a><var>89.7</var>    Subd. 23a. <b>Qualified bonds.</b> "Qualified bonds" means the specific type or types <br/>
<a id="pl.89.8"></a><var>89.8</var>of obligations that are subject to the annual volume cap. Qualified bonds include the <br/>
<a id="pl.89.9"></a><var>89.9</var>following types of obligations as defined in federal tax law:<br/>
<a id="pl.89.10"></a><var>89.10</var>(a) "public facility bonds" means "exempt facility bonds" as defined in federal <br/>
<a id="pl.89.11"></a><var>89.11</var>tax law, except for residential rental project bonds, which are those obligations issued <br/>
<a id="pl.89.12"></a><var>89.12</var>to finance airports, docks and wharves, mass commuting facilities, facilities for the <br/>
<a id="pl.89.13"></a><var>89.13</var>furnishing of water, sewage facilities, solid waste disposal facilities, facilities for the <br/>
<a id="pl.89.14"></a><var>89.14</var>local furnishing of electric energy or gas, local district heating or cooling facilities, and <br/>
<a id="pl.89.15"></a><var>89.15</var>qualified hazardous waste facilities. New bonds and other obligations are ineligible to <br/>
<a id="pl.89.16"></a><var>89.16</var>receive state allocations or entitlement authority for public facility projects under this <br/>
<a id="pl.89.17"></a><var>89.17</var>section if they have been issued:<br/>
<a id="pl.89.18"></a><var>89.18</var>(1) for the purpose of refinancing, refunding, or otherwise defeasing existing debt; <br/>
<a id="pl.89.19"></a><var>89.19</var>and<br/>
<a id="pl.89.20"></a><var>89.20</var>(2) more than one calendar year prior to the date of application;<br/>
<a id="pl.89.21"></a><var>89.21</var>(b) "residential rental project bonds" which are those obligations issued to finance <br/>
<a id="pl.89.22"></a><var>89.22</var>qualified residential rental projects;<br/>
<a id="pl.89.23"></a><var>89.23</var>(c) "mortgage bonds";<br/>
<a id="pl.89.24"></a><var>89.24</var>(d) "small issue bonds" issued to finance manufacturing projects and the acquisition <br/>
<a id="pl.89.25"></a><var>89.25</var>or improvement of agricultural real or personal property under sections 
         <statute_ref>41C.01</statute_ref> to 
         <statute_ref>41C.13</statute_ref>;<br/>
<a id="pl.89.26"></a><var>89.26</var>(e) "student loan bonds" issued by or on behalf of the Minnesota Office of Higher <br/>
<a id="pl.89.27"></a><var>89.27</var>Education;<br/>
<a id="pl.89.28"></a><var>89.28</var>(f) "redevelopment bonds";<br/>
<a id="pl.89.29"></a><var>89.29</var>(g) "governmental bonds" with a nonqualified amount in excess of $15,000,000 as <br/>
<a id="pl.89.30"></a><var>89.30</var>set forth in section 141(b)5 of federal tax law; and<br/>
<a id="pl.89.31"></a><var>89.31</var>(h) "enterprise zone facility bonds" issued to finance facilities located within <br/>
<a id="pl.89.32"></a><var>89.32</var>empowerment zones or enterprise communities, as authorized under Public Law 103-66, <br/>
<a id="pl.89.33"></a><var>89.33</var>section 13301 section 1394 of the Internal Revenue Code.<br/>
<br/>
<a id="bill.6.5.0"></a><a id="pl.89.34"></a><var>89.34</var>    Sec. 5. Minnesota Statutes 2010, section 475.521, subdivision 2, is amended to read:<br/>
<a id="pl.90.1"></a><var>90.1</var>    Subd. 2. <b>Election requirement.</b> (a) Bonds issued by a municipality to finance <br/>
<a id="pl.90.2"></a><var>90.2</var>capital improvements under an approved capital improvements plan are not subject to the <br/>
<a id="pl.90.3"></a><var>90.3</var>election requirements of section 
         <statute_ref>475.58</statute_ref>. The bonds must be approved by an affirmative <br/>
<a id="pl.90.4"></a><var>90.4</var>vote of three-fifths of the members of a five-member governing body. In the case of a <br/>
<a id="pl.90.5"></a><var>90.5</var>governing body having more or less than five members, the bonds must be approved by a <br/>
<a id="pl.90.6"></a><var>90.6</var>vote of at least two-thirds of the members of the governing body.<br/>
<a id="pl.90.7"></a><var>90.7</var>(b) Before the issuance of bonds qualifying under this section, the municipality <br/>
<a id="pl.90.8"></a><var>90.8</var>must publish a notice of its intention to issue the bonds and the date and time of the <br/>
<a id="pl.90.9"></a><var>90.9</var>hearing to obtain public comment on the matter. The notice must be published in the <br/>
<a id="pl.90.10"></a><var>90.10</var>official newspaper of the municipality or in a newspaper of general circulation in the <br/>
<a id="pl.90.11"></a><var>90.11</var>municipality. Additionally, the notice may be posted on the official Web site, if any, of the <br/>
<a id="pl.90.12"></a><var>90.12</var>municipality. The notice must be published at least 14 but not more than 28 days before <br/>
<a id="pl.90.13"></a><var>90.13</var>the date of the hearing.<br/>
<a id="pl.90.14"></a><var>90.14</var>(c) A municipality may issue the bonds only after obtaining the approval of a <br/>
<a id="pl.90.15"></a><var>90.15</var>majority of the voters voting on the question of issuing the obligations, if a petition <br/>
<a id="pl.90.16"></a><var>90.16</var>requesting a vote on the issuance is signed by voters equal to five percent of the votes cast <br/>
<a id="pl.90.17"></a><var>90.17</var>in the municipality in the last municipal general election and is filed with the clerk within <br/>
<a id="pl.90.18"></a><var>90.18</var>30 days after the public hearing. The commissioner of revenue shall prepare a suggested <br/>
<a id="pl.90.19"></a><var>90.19</var>form of the question to be presented at the election If the municipality elects not to submit <br/>
<a id="pl.90.20"></a><var>90.20</var>the question to the voters, the municipality shall not propose the issuance of bonds under <br/>
<a id="pl.90.21"></a><var>90.21</var>this section for the same purpose and in the same amount for a period of 365 days from the <br/>
<a id="pl.90.22"></a><var>90.22</var>date of receipt of the petition. If the question of issuing the bonds is submitted and not <br/>
<a id="pl.90.23"></a><var>90.23</var>approved by the voters, the provisions of section 475.58, subdivision 1a, apply.<br/>
<br/>
<a id="bill.6.6.0"></a><a id="pl.90.24"></a><var>90.24</var>    Sec. 6. Minnesota Statutes 2010, section 475.521, subdivision 4, is amended to read:<br/>
<a id="pl.90.25"></a><var>90.25</var>    Subd. 4. <b>Limitations on amount.</b> A municipality may not issue bonds under <br/>
<a id="pl.90.26"></a><var>90.26</var>this section if the maximum amount of principal and interest to become due in any <br/>
<a id="pl.90.27"></a><var>90.27</var>year on all the outstanding bonds issued under this section, including the bonds to be <br/>
<a id="pl.90.28"></a><var>90.28</var>issued, will equal or exceed 0.16 percent of the taxable market value of property in the <br/>
<a id="pl.90.29"></a><var>90.29</var>municipality. Calculation of the limit must be made using the taxable market value for <br/>
<a id="pl.90.30"></a><var>90.30</var>the taxes payable year in which the obligations are issued and sold, provided that, for <br/>
<a id="pl.90.31"></a><var>90.31</var>purposes of determining the principal and interest due in any year, the municipality may <br/>
<a id="pl.90.32"></a><var>90.32</var>deduct the amount of interest expected to be paid or reimbursed to the municipality by the <br/>
<a id="pl.90.33"></a><var>90.33</var>federal government in that year on any outstanding bonds or the bonds to be issued. In <br/>
<a id="pl.90.34"></a><var>90.34</var>the case of a municipality with a population of 2,500 or more, the bonds are subject to <br/>
<a id="pl.90.35"></a><var>90.35</var>the net debt limits under section 
         <statute_ref>475.53</statute_ref>. In the case of a shared facility in which more <br/>
<a id="pl.91.1"></a><var>91.1</var>than one municipality participates, upon compliance by each participating municipality <br/>
<a id="pl.91.2"></a><var>91.2</var>with the requirements of subdivision 2, the limitations in this subdivision and the net debt <br/>
<a id="pl.91.3"></a><var>91.3</var>represented by the bonds shall be allocated to each participating municipality in proportion <br/>
<a id="pl.91.4"></a><var>91.4</var>to its required financial contribution to the financing of the shared facility, as set forth in <br/>
<a id="pl.91.5"></a><var>91.5</var>the joint powers agreement relating to the shared facility. This section does not limit the <br/>
<a id="pl.91.6"></a><var>91.6</var>authority to issue bonds under any other special or general law.<br/>
<br/>
<a id="bill.6.7.0"></a><a id="pl.91.7"></a><var>91.7</var>    Sec. 7. Minnesota Statutes 2010, section 475.58, subdivision 3b, is amended to read:<br/>
<a id="pl.91.8"></a><var>91.8</var>    Subd. 3b. <b>Street reconstruction.</b> (a) A municipality may, without regard to <br/>
<a id="pl.91.9"></a><var>91.9</var>the election requirement under subdivision 1, issue and sell obligations for street <br/>
<a id="pl.91.10"></a><var>91.10</var>reconstruction, if the following conditions are met:<br/>
<a id="pl.91.11"></a><var>91.11</var>    (1) the streets are reconstructed under a street reconstruction plan that describes the <br/>
<a id="pl.91.12"></a><var>91.12</var>street reconstruction to be financed, the estimated costs, and any planned reconstruction <br/>
<a id="pl.91.13"></a><var>91.13</var>of other streets in the municipality over the next five years, and the plan and issuance of <br/>
<a id="pl.91.14"></a><var>91.14</var>the obligations has been approved by a vote of all of the members of the governing body <br/>
<a id="pl.91.15"></a><var>91.15</var>present at the meeting following a public hearing for which notice has been published in <br/>
<a id="pl.91.16"></a><var>91.16</var>the official newspaper at least ten days but not more than 28 days prior to the hearing; and<br/>
<a id="pl.91.17"></a><var>91.17</var>    (2) if a petition requesting a vote on the issuance is signed by voters equal to <br/>
<a id="pl.91.18"></a><var>91.18</var>five percent of the votes cast in the last municipal general election and is filed with the <br/>
<a id="pl.91.19"></a><var>91.19</var>municipal clerk within 30 days of the public hearing, the municipality may issue the bonds <br/>
<a id="pl.91.20"></a><var>91.20</var>only after obtaining the approval of a majority of the voters voting on the question of the <br/>
<a id="pl.91.21"></a><var>91.21</var>issuance of the obligations. If the municipality elects not to submit the question to the <br/>
<a id="pl.91.22"></a><var>91.22</var>voters, the municipality shall not propose the issuance of bonds under this section for the <br/>
<a id="pl.91.23"></a><var>91.23</var>same purpose and in the same amount for a period of 365 days from the date of receipt <br/>
<a id="pl.91.24"></a><var>91.24</var>of the petition. If the question of issuing the bonds is submitted and not approved by the <br/>
<a id="pl.91.25"></a><var>91.25</var>voters, the provisions of subdivision 1a, apply.<br/>
<a id="pl.91.26"></a><var>91.26</var>    (b) Obligations issued under this subdivision are subject to the debt limit of the <br/>
<a id="pl.91.27"></a><var>91.27</var>municipality and are not excluded from net debt under section 
         <statute_ref>475.51, subdivision 4</statute_ref>.<br/>
<a id="pl.91.28"></a><var>91.28</var>    (c) For purposes of this subdivision, street reconstruction includes utility <br/>
<a id="pl.91.29"></a><var>91.29</var>replacement and relocation and other activities incidental to the street reconstruction, turn <br/>
<a id="pl.91.30"></a><var>91.30</var>lanes and other improvements having a substantial public safety function, realignments, <br/>
<a id="pl.91.31"></a><var>91.31</var>other modifications to intersect with state and county roads, and the local share of state <br/>
<a id="pl.91.32"></a><var>91.32</var>and county road projects.<br/>
<a id="pl.91.33"></a><var>91.33</var>    (d) Except in the case of turn lanes, safety improvements, realignments, intersection <br/>
<a id="pl.91.34"></a><var>91.34</var>modifications, and the local share of state and county road projects, street reconstruction <br/>
<a id="pl.92.1"></a><var>92.1</var>does not include the portion of project cost allocable to widening a street or adding curbs <br/>
<a id="pl.92.2"></a><var>92.2</var>and gutters where none previously existed.<br/>
<br/>
<a id="bill.6.8.0"></a><a id="pl.92.3"></a><var>92.3</var>    Sec. 8. Laws 1971, chapter 773, section 1, subdivision 2, as amended by Laws 1974, <br/>
<a id="pl.92.4"></a><var>92.4</var>chapter 351, section 5, Laws 1976, chapter 234, sections 1 and 7, Laws 1978, chapter 788, <br/>
<a id="pl.92.5"></a><var>92.5</var>section 1, Laws 1981, chapter 369, section 1, Laws 1983, chapter 302, section 1, Laws <br/>
<a id="pl.92.6"></a><var>92.6</var>1988, chapter 513, section 1, Laws 1992, chapter 511, article 9, section 23, Laws 1998, <br/>
<a id="pl.92.7"></a><var>92.7</var>chapter 389, article 3, section 27, and Laws 2002, chapter 390, section 23, is amended to <br/>
<a id="pl.92.8"></a><var>92.8</var>read:<br/>
<a id="pl.92.9"></a><var>92.9</var>    Subd. 2. For each of the years 2003 to 2013 2012 to 2024, the city of St. Paul is <br/>
<a id="pl.92.10"></a><var>92.10</var>authorized to issue bonds in the aggregate principal amount of $20,000,000 for each year.<br/>
<a id="pl.92.11"></a><var>92.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.9.0"></a><a id="pl.92.12"></a><var>92.12</var>    Sec. 9. Laws 2003, chapter 127, article 12, section 28, is amended to read:<br/>
<a id="pl.92.13"></a><var>92.13</var>    Sec. 28. <b>NURSING HOME BONDS AUTHORIZED.</b><br/>
<a id="pl.92.14"></a><var>92.14</var>    (a) Itasca County may issue bonds under Minnesota Statutes, sections 
         <statute_ref>376.55</statute_ref> and <br/>
<statute_ref><a id="pl.92.15"></a><var>92.15</var>376.56
         </statute_ref>, to finance the construction of a 35-bed nursing home facility to replace an existing <br/>
<a id="pl.92.16"></a><var>92.16</var>35-bed private facility located in the county. The bonds issued under this section must <br/>
<a id="pl.92.17"></a><var>92.17</var>may be payable solely from revenues and or may not be general obligations of the county.<br/>
<a id="pl.92.18"></a><var>92.18</var>    (b) Before issuing general obligation bonds under this section, the county must <br/>
<a id="pl.92.19"></a><var>92.19</var>publish a notice of its intention to issue the bonds and the date and time of a hearing to <br/>
<a id="pl.92.20"></a><var>92.20</var>obtain public comment on the matter. The notice must be published on the official Web <br/>
<a id="pl.92.21"></a><var>92.21</var>site of the county or in a newspaper of general circulation in the county. The notice must <br/>
<a id="pl.92.22"></a><var>92.22</var>be published at least 14, but not more than 28, days before the date of the hearing.  The <br/>
<a id="pl.92.23"></a><var>92.23</var>county may issue the bonds only upon obtaining the approval of a majority of the voters <br/>
<a id="pl.92.24"></a><var>92.24</var>voting on the question of issuing the obligations, if a petition requesting a vote on the <br/>
<a id="pl.92.25"></a><var>92.25</var>issuance is signed by voters equal to five percent of the votes cast in the county in the last <br/>
<a id="pl.92.26"></a><var>92.26</var>general election and is filed with the county auditor within 30 days after the public hearing.<br/>
<a id="pl.92.27"></a><var>92.27</var><b>EFFECTIVE DATE; LOCAL APPROVAL.</b>This section is effective the day after <br/>
<a id="pl.92.28"></a><var>92.28</var>the governing body of Itasca County and its chief clerical officer timely complete their <br/>
<a id="pl.92.29"></a><var>92.29</var>compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.6.10.0"></a><a id="pl.92.30"></a><var>92.30</var>    Sec. 10. <b>WOODBURY; EXEMPTION FROM REFERENDUM.</b><br/>
<a id="pl.92.31"></a><var>92.31</var>    (a) Notwithstanding the referendum requirement in Minnesota Statutes, section <br/>
<a id="pl.92.32"></a><var>92.32</var>475.58, subdivision 1, or any other provision of law, the city of Woodbury may issue and <br/>
<a id="pl.93.1"></a><var>93.1</var>sell obligations to pay for the cost of renovating, improving, expanding, and equipping the <br/>
<a id="pl.93.2"></a><var>93.2</var>Bielenberg Sports Center, along with costs of issuance of the obligations and capitalized <br/>
<a id="pl.93.3"></a><var>93.3</var>interest, if:<br/>
<a id="pl.93.4"></a><var>93.4</var>    (1) the obligations are secured by a pledge of revenues from the facility; and<br/>
<a id="pl.93.5"></a><var>93.5</var>    (2) the city finds, based on analysis provided by a professional experienced in <br/>
<a id="pl.93.6"></a><var>93.6</var>finance, that the facility's revenues and a property tax levy equal to the maximum annual <br/>
<a id="pl.93.7"></a><var>93.7</var>property tax levy used to pay the bonds previously issued to finance, in whole or in part, <br/>
<a id="pl.93.8"></a><var>93.8</var>the facility will in the aggregate be sufficient to pay the obligations without the imposition <br/>
<a id="pl.93.9"></a><var>93.9</var>of an additional property tax levy pledged to the obligations.<br/>
<a id="pl.93.10"></a><var>93.10</var>    (b) Before issuing bonds under this section, the city must publish a notice of its <br/>
<a id="pl.93.11"></a><var>93.11</var>intention to issue the bonds and the date and time of a hearing to obtain public comment <br/>
<a id="pl.93.12"></a><var>93.12</var>on the matter. The notice must be published on the official Web site of the city or in a <br/>
<a id="pl.93.13"></a><var>93.13</var>newspaper of general circulation in the city. The notice must be published at least 14, but <br/>
<a id="pl.93.14"></a><var>93.14</var>not more than 28, days before the date of the hearing. The city may issue the bonds only <br/>
<a id="pl.93.15"></a><var>93.15</var>upon obtaining the approval of a majority of the voters voting on the question of issuing <br/>
<a id="pl.93.16"></a><var>93.16</var>the obligations, if a petition requesting a vote on the issuance is signed by voters equal to <br/>
<a id="pl.93.17"></a><var>93.17</var>five percent of the votes cast in the city in the last general election and is filed with the city <br/>
<a id="pl.93.18"></a><var>93.18</var>clerk within 30 days after the public hearing.<br/>
<a id="pl.93.19"></a><var>93.19</var><b>EFFECTIVE DATE; LOCAL APPROVAL.</b>This section  is effective the day after <br/>
<a id="pl.93.20"></a><var>93.20</var>the governing body of the city of Woodbury and its chief clerical officer timely complete <br/>
<a id="pl.93.21"></a><var>93.21</var>their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.7.0.0"></a>

<a id="bill.7.1.0"></a><a id="pl.93.24"></a><var>93.24</var>    Section 1. Minnesota Statutes 2010, section 38.18, is amended to read:<br/>
<a id="pl.93.25"></a><var>93.25</var><b>38.18 COUNTY FAIRGROUNDS; IMPROVEMENT AIDED.</b><br/>
<a id="pl.93.26"></a><var>93.26</var>Any Each town, statutory city, or school district in this state, now or hereafter at <br/>
<a id="pl.93.27"></a><var>93.27</var>any time having a an estimated market value of all its taxable property, exclusive of <br/>
<a id="pl.93.28"></a><var>93.28</var>money and credits, of more than $105,000,000, and having a county fair located within its <br/>
<a id="pl.93.29"></a><var>93.29</var>corporate limits, is hereby authorized to aid in defraying may pay part of the expense of <br/>
<a id="pl.93.30"></a><var>93.30</var>improving any such the fairground, by appropriating and paying over to the treasurer of <br/>
<a id="pl.93.31"></a><var>93.31</var>the county owning the fairground such sum of money, not exceeding $10,000, for each <br/>
<a id="pl.93.32"></a><var>93.32</var>of the political subdivisions, as the its governing body of the town, statutory city, or <br/>
<a id="pl.93.33"></a><var>93.33</var>school district may, by resolution, determine determines to be for the best interest of the <br/>
<a id="pl.93.34"></a><var>93.34</var>political subdivision,. The sums so appropriated to amounts paid to the county must be <br/>
<a id="pl.93.35"></a><var>93.35</var>used solely for the purpose of aiding in the improvement of to improve the fairground <br/>
<a id="pl.94.1"></a><var>94.1</var>in such the manner as the county board of the county shall determine determines to be <br/>
<a id="pl.94.2"></a><var>94.2</var>for the best interest of the county.<br/>
<br/>
<a id="bill.7.2.0"></a><a id="pl.94.3"></a><var>94.3</var>    Sec. 2. Minnesota Statutes 2010, section 40A.15, subdivision 2, is amended to read:<br/>
<a id="pl.94.4"></a><var>94.4</var>    Subd. 2. <b>Eligible recipients.</b> All counties within the state, municipalities that <br/>
<a id="pl.94.5"></a><var>94.5</var>prepare plans and official controls instead of a county, and districts are eligible for <br/>
<a id="pl.94.6"></a><var>94.6</var>assistance under the program. Counties and districts may apply for assistance on behalf <br/>
<a id="pl.94.7"></a><var>94.7</var>of other municipalities. In order to be eligible for financial assistance a county or <br/>
<a id="pl.94.8"></a><var>94.8</var>municipality must agree to levy at least 0.01209 percent of taxable estimated market <br/>
<a id="pl.94.9"></a><var>94.9</var>value for agricultural land preservation and conservation activities or otherwise spend the <br/>
<a id="pl.94.10"></a><var>94.10</var>equivalent amount of local money on those activities, or spend $15,000 of local money, <br/>
<a id="pl.94.11"></a><var>94.11</var>whichever is less.<br/>
<br/>
<a id="bill.7.3.0"></a><a id="pl.94.12"></a><var>94.12</var>    Sec. 3. Minnesota Statutes 2010, section 69.011, subdivision 1, is amended to read:<br/>
<a id="pl.94.13"></a><var>94.13</var>    Subdivision 1. <b>Definitions.</b> Unless the language or context clearly indicates that <br/>
<a id="pl.94.14"></a><var>94.14</var>a different meaning is intended, the following words and terms, for the purposes of this <br/>
<a id="pl.94.15"></a><var>94.15</var>chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:<br/>
<a id="pl.94.16"></a><var>94.16</var>    (a) "Commissioner" means the commissioner of revenue.<br/>
<a id="pl.94.17"></a><var>94.17</var>    (b) "Municipality" means:<br/>
<a id="pl.94.18"></a><var>94.18</var>    (1) a home rule charter or statutory city;<br/>
<a id="pl.94.19"></a><var>94.19</var>    (2) an organized town;<br/>
<a id="pl.94.20"></a><var>94.20</var>    (3) a park district subject to chapter 398;<br/>
<a id="pl.94.21"></a><var>94.21</var>    (4) the University of Minnesota;<br/>
<a id="pl.94.22"></a><var>94.22</var>    (5) for purposes of the fire state aid program only, an American Indian tribal <br/>
<a id="pl.94.23"></a><var>94.23</var>government entity located within a federally recognized American Indian reservation;<br/>
<a id="pl.94.24"></a><var>94.24</var>    (6) for purposes of the police state aid program only, an American Indian tribal <br/>
<a id="pl.94.25"></a><var>94.25</var>government with a tribal police department which exercises state arrest powers under <br/>
<a id="pl.94.26"></a><var>94.26</var>section 
         <statute_ref>626.90</statute_ref>, 
         <statute_ref>626.91</statute_ref>, 
         <statute_ref>626.92</statute_ref>, or 
         <statute_ref>626.93</statute_ref>;<br/>
<a id="pl.94.27"></a><var>94.27</var>    (7) for purposes of the police state aid program only, the Metropolitan Airports <br/>
<a id="pl.94.28"></a><var>94.28</var>Commission; and<br/>
<a id="pl.94.29"></a><var>94.29</var>    (8) for purposes of the police state aid program only, the Department of Natural <br/>
<a id="pl.94.30"></a><var>94.30</var>Resources and the Department of Public Safety with respect to peace officers covered <br/>
<a id="pl.94.31"></a><var>94.31</var>under chapter 352B.<br/>
<a id="pl.94.32"></a><var>94.32</var>    (c) "Minnesota Firetown Premium Report" means a form prescribed by the <br/>
<a id="pl.94.33"></a><var>94.33</var>commissioner containing space for reporting by insurers of fire, lightning, sprinkler <br/>
<a id="pl.95.1"></a><var>95.1</var>leakage and extended coverage premiums received upon risks located or to be performed <br/>
<a id="pl.95.2"></a><var>95.2</var>in this state less return premiums and dividends.<br/>
<a id="pl.95.3"></a><var>95.3</var>    (d) "Firetown" means the area serviced by any municipality having a qualified fire <br/>
<a id="pl.95.4"></a><var>95.4</var>department or a qualified incorporated fire department having a subsidiary volunteer <br/>
<a id="pl.95.5"></a><var>95.5</var>firefighters' relief association.<br/>
<a id="pl.95.6"></a><var>95.6</var>    (e) "Estimated market value" means latest available estimated market value of all <br/>
<a id="pl.95.7"></a><var>95.7</var>property in a taxing jurisdiction, whether the property is subject to taxation, or exempt <br/>
<a id="pl.95.8"></a><var>95.8</var>from ad valorem taxation obtained from information which appears on abstracts filed with <br/>
<a id="pl.95.9"></a><var>95.9</var>the commissioner of revenue or equalized by the State Board of Equalization.<br/>
<a id="pl.95.10"></a><var>95.10</var>    (f) "Minnesota Aid to Police Premium Report" means a form prescribed by the <br/>
<a id="pl.95.11"></a><var>95.11</var>commissioner for reporting by each fire and casualty insurer of all premiums received <br/>
<a id="pl.95.12"></a><var>95.12</var>upon direct business received by it in this state, or by its agents for it, in cash or otherwise, <br/>
<a id="pl.95.13"></a><var>95.13</var>during the preceding calendar year, with reference to insurance written for insuring against <br/>
<a id="pl.95.14"></a><var>95.14</var>the perils contained in auto insurance coverages as reported in the Minnesota business <br/>
<a id="pl.95.15"></a><var>95.15</var>schedule of the annual financial statement which each insurer is required to file with <br/>
<a id="pl.95.16"></a><var>95.16</var>the commissioner in accordance with the governing laws or rules less return premiums <br/>
<a id="pl.95.17"></a><var>95.17</var>and dividends.<br/>
<a id="pl.95.18"></a><var>95.18</var>    (g) "Peace officer" means any person:<br/>
<a id="pl.95.19"></a><var>95.19</var>    (1) whose primary source of income derived from wages is from direct employment <br/>
<a id="pl.95.20"></a><var>95.20</var>by a municipality or county as a law enforcement officer on a full-time basis of not less <br/>
<a id="pl.95.21"></a><var>95.21</var>than 30 hours per week;<br/>
<a id="pl.95.22"></a><var>95.22</var>    (2) who has been employed for a minimum of six months prior to December 31 <br/>
<a id="pl.95.23"></a><var>95.23</var>preceding the date of the current year's certification under subdivision 2, clause (b);<br/>
<a id="pl.95.24"></a><var>95.24</var>    (3) who is sworn to enforce the general criminal laws of the state and local <br/>
<a id="pl.95.25"></a><var>95.25</var>ordinances;<br/>
<a id="pl.95.26"></a><var>95.26</var>    (4) who is licensed by the Peace Officers Standards and Training Board and is <br/>
<a id="pl.95.27"></a><var>95.27</var>authorized to arrest with a warrant; and<br/>
<a id="pl.95.28"></a><var>95.28</var>    (5) who is a member of the Minneapolis Police Relief Association, the State Patrol <br/>
<a id="pl.95.29"></a><var>95.29</var>retirement plan, or the public employees police and fire fund.<br/>
<a id="pl.95.30"></a><var>95.30</var>    (h) "Full-time equivalent number of peace officers providing contract service" means <br/>
<a id="pl.95.31"></a><var>95.31</var>the integral or fractional number of peace officers which would be necessary to provide <br/>
<a id="pl.95.32"></a><var>95.32</var>the contract service if all peace officers providing service were employed on a full-time <br/>
<a id="pl.95.33"></a><var>95.33</var>basis as defined by the employing unit and the municipality receiving the contract service.<br/>
<a id="pl.95.34"></a><var>95.34</var>    (i) "Retirement benefits other than a service pension" means any disbursement <br/>
<a id="pl.95.35"></a><var>95.35</var>authorized under section 
         <statute_ref>424A.05, subdivision 3</statute_ref>, clauses (3) and (4).<br/>
<a id="pl.96.1"></a><var>96.1</var>    (j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means the person <br/>
<a id="pl.96.2"></a><var>96.2</var>who was elected or appointed to the specified position or, in the absence of the person, <br/>
<a id="pl.96.3"></a><var>96.3</var>another person who is designated by the applicable governing body. In a park district, <br/>
<a id="pl.96.4"></a><var>96.4</var>the clerk is the secretary of the board of park district commissioners. In the case of the <br/>
<a id="pl.96.5"></a><var>96.5</var>University of Minnesota, the clerk is that official designated by the Board of Regents. <br/>
<a id="pl.96.6"></a><var>96.6</var>For the Metropolitan Airports Commission, the clerk is the person designated by the <br/>
<a id="pl.96.7"></a><var>96.7</var>commission. For the Department of Natural Resources or the Department of Public Safety, <br/>
<a id="pl.96.8"></a><var>96.8</var>the clerk is the respective commissioner. For a tribal police department which exercises <br/>
<a id="pl.96.9"></a><var>96.9</var>state arrest powers under section 
         <statute_ref>626.90</statute_ref>, 
         <statute_ref>626.91</statute_ref>, 
         <statute_ref>626.92</statute_ref>, or 
         <statute_ref>626.93</statute_ref>, the clerk is the person <br/>
<a id="pl.96.10"></a><var>96.10</var>designated by the applicable American Indian tribal government.<br/>
<a id="pl.96.11"></a><var>96.11</var>(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the <br/>
<a id="pl.96.12"></a><var>96.12</var>retirement plan established by chapter 353G.<br/>
<br/>
<a id="bill.7.4.0"></a><a id="pl.96.13"></a><var>96.13</var>    Sec. 4. Minnesota Statutes 2010, section 69.021, subdivision 7, is amended to read:<br/>
<a id="pl.96.14"></a><var>96.14</var>    Subd. 7. <b>Apportionment of fire state aid to municipalities and relief associations.</b><br/>
<a id="pl.96.15"></a><var>96.15</var>(a) The commissioner shall apportion the fire state aid relative to the premiums reported <br/>
<a id="pl.96.16"></a><var>96.16</var>on the Minnesota Firetown Premium Reports filed under this chapter to each municipality <br/>
<a id="pl.96.17"></a><var>96.17</var>and/or firefighters relief association.<br/>
<a id="pl.96.18"></a><var>96.18</var>(b) The commissioner shall calculate an initial fire state aid allocation amount for <br/>
<a id="pl.96.19"></a><var>96.19</var>each municipality or fire department under paragraph (c) and a minimum fire state aid <br/>
<a id="pl.96.20"></a><var>96.20</var>allocation amount for each municipality or fire department under paragraph (d). The <br/>
<a id="pl.96.21"></a><var>96.21</var>municipality or fire department must receive the larger fire state aid amount.<br/>
<a id="pl.96.22"></a><var>96.22</var>(c) The initial fire state aid allocation amount is the amount available for <br/>
<a id="pl.96.23"></a><var>96.23</var>apportionment as fire state aid under subdivision 5, without inclusion of any additional <br/>
<a id="pl.96.24"></a><var>96.24</var>funding amount to support a minimum fire state aid amount under section 
         <statute_ref>423A.02, <br/>
<a id="pl.96.25"></a><var>96.25</var>subdivision 3
         </statute_ref>, allocated one-half in proportion to the population as shown in the last <br/>
<a id="pl.96.26"></a><var>96.26</var>official statewide federal census for each fire town and one-half in proportion to the <br/>
<a id="pl.96.27"></a><var>96.27</var>estimated market value of each fire town, including (1) the estimated market value of <br/>
<a id="pl.96.28"></a><var>96.28</var>tax-exempt property and (2) the estimated market value of natural resources lands <br/>
<a id="pl.96.29"></a><var>96.29</var>receiving in lieu payments under sections 
         <statute_ref>477A.11 </statute_ref>to 
         <statute_ref>477A.14</statute_ref>, but excluding the <br/>
<a id="pl.96.30"></a><var>96.30</var>estimated market value of minerals. In the case of incorporated or municipal fire <br/>
<a id="pl.96.31"></a><var>96.31</var>departments furnishing fire protection to other cities, towns, or townships as evidenced <br/>
<a id="pl.96.32"></a><var>96.32</var>by valid fire service contracts filed with the commissioner, the distribution must be <br/>
<a id="pl.96.33"></a><var>96.33</var>adjusted proportionately to take into consideration the crossover fire protection service. <br/>
<a id="pl.96.34"></a><var>96.34</var>Necessary adjustments must be made to subsequent apportionments. In the case of <br/>
<a id="pl.96.35"></a><var>96.35</var>municipalities or independent fire departments qualifying for the aid, the commissioner <br/>
<a id="pl.97.1"></a><var>97.1</var>shall calculate the state aid for the municipality or relief association on the basis of the <br/>
<a id="pl.97.2"></a><var>97.2</var>population and the estimated market value of the area furnished fire protection service <br/>
<a id="pl.97.3"></a><var>97.3</var>by the fire department as evidenced by duly executed and valid fire service agreements <br/>
<a id="pl.97.4"></a><var>97.4</var>filed with the commissioner. If one or more fire departments are furnishing contracted fire <br/>
<a id="pl.97.5"></a><var>97.5</var>service to a city, town, or township, only the population and estimated market value of the <br/>
<a id="pl.97.6"></a><var>97.6</var>area served by each fire department may be considered in calculating the state aid and <br/>
<a id="pl.97.7"></a><var>97.7</var>the fire departments furnishing service shall enter into an agreement apportioning among <br/>
<a id="pl.97.8"></a><var>97.8</var>themselves the percent of the population and the estimated market value of each service <br/>
<a id="pl.97.9"></a><var>97.9</var>area. The agreement must be in writing and must be filed with the commissioner.<br/>
<a id="pl.97.10"></a><var>97.10</var>(d) The minimum fire state aid allocation amount is the amount in addition to the <br/>
<a id="pl.97.11"></a><var>97.11</var>initial fire state allocation amount that is derived from any additional funding amount <br/>
<a id="pl.97.12"></a><var>97.12</var>to support a minimum fire state aid amount under section 
         <statute_ref>423A.02, subdivision 3</statute_ref>, and <br/>
<a id="pl.97.13"></a><var>97.13</var>allocated to municipalities with volunteer firefighters relief associations or covered by the <br/>
<a id="pl.97.14"></a><var>97.14</var>voluntary statewide lump-sum volunteer firefighter retirement plan based on the number <br/>
<a id="pl.97.15"></a><var>97.15</var>of active volunteer firefighters who are members of the relief association as reported <br/>
<a id="pl.97.16"></a><var>97.16</var>in the annual financial reporting for the calendar year 1993 to the Office of the State <br/>
<a id="pl.97.17"></a><var>97.17</var>Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or <br/>
<a id="pl.97.18"></a><var>97.18</var>fire departments with volunteer firefighters relief associations receive in total at least a <br/>
<a id="pl.97.19"></a><var>97.19</var>minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of <br/>
<a id="pl.97.20"></a><var>97.20</var>30 firefighters. If a relief association is established after calendar year 1993 and before <br/>
<a id="pl.97.21"></a><var>97.21</var>calendar year 2000, the number of active volunteer firefighters who are members of the <br/>
<a id="pl.97.22"></a><var>97.22</var>relief association as reported in the annual financial reporting for calendar year 1998 <br/>
<a id="pl.97.23"></a><var>97.23</var>to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, <br/>
<a id="pl.97.24"></a><var>97.24</var>shall be used in this determination. If a relief association is established after calendar <br/>
<a id="pl.97.25"></a><var>97.25</var>year 1999, the number of active volunteer firefighters who are members of the relief <br/>
<a id="pl.97.26"></a><var>97.26</var>association as reported in the first annual financial reporting submitted to the Office of <br/>
<a id="pl.97.27"></a><var>97.27</var>the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this <br/>
<a id="pl.97.28"></a><var>97.28</var>determination. If a relief association is terminated as a result of providing retirement <br/>
<a id="pl.97.29"></a><var>97.29</var>coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer <br/>
<a id="pl.97.30"></a><var>97.30</var>firefighter retirement plan under chapter 353G, the number of active volunteer firefighters <br/>
<a id="pl.97.31"></a><var>97.31</var>of the municipality covered by the statewide plan as certified by the executive director of <br/>
<a id="pl.97.32"></a><var>97.32</var>the Public Employees Retirement Association to the commissioner and the state auditor, <br/>
<a id="pl.97.33"></a><var>97.33</var>but not to exceed 30 active firefighters, must be used in this determination.<br/>
<a id="pl.97.34"></a><var>97.34</var>(e) Unless the firefighters of the applicable fire department are members of the <br/>
<a id="pl.97.35"></a><var>97.35</var>voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must <br/>
<a id="pl.97.36"></a><var>97.36</var>be paid to the treasurer of the municipality where the fire department is located and the <br/>
<a id="pl.98.1"></a><var>98.1</var>treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit <br/>
<a id="pl.98.2"></a><var>98.2</var>the aid to the relief association if the relief association has filed a financial report with the <br/>
<a id="pl.98.3"></a><var>98.3</var>treasurer of the municipality and has met all other statutory provisions pertaining to the <br/>
<a id="pl.98.4"></a><var>98.4</var>aid apportionment. If the firefighters of the applicable fire department are members of <br/>
<a id="pl.98.5"></a><var>98.5</var>the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid <br/>
<a id="pl.98.6"></a><var>98.6</var>must be paid to the executive director of the Public Employees Retirement Association <br/>
<a id="pl.98.7"></a><var>98.7</var>and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.<br/>
<a id="pl.98.8"></a><var>98.8</var>(f) The commissioner may make rules to permit the administration of the provisions <br/>
<a id="pl.98.9"></a><var>98.9</var>of this section.<br/>
<a id="pl.98.10"></a><var>98.10</var>(g) Any adjustments needed to correct prior misallocations must be made to <br/>
<a id="pl.98.11"></a><var>98.11</var>subsequent apportionments.<br/>
<br/>
<a id="bill.7.5.0"></a><a id="pl.98.12"></a><var>98.12</var>    Sec. 5. Minnesota Statutes 2010, section 69.021, subdivision 8, is amended to read:<br/>
<a id="pl.98.13"></a><var>98.13</var>    Subd. 8. <b>Population and </b><b>estimated </b><b>market value.</b> (a) In computations relating to <br/>
<a id="pl.98.14"></a><var>98.14</var>fire state aid requiring the use of population figures, only official statewide federal census <br/>
<a id="pl.98.15"></a><var>98.15</var>figures are to be used. Increases or decreases in population disclosed by reason of any <br/>
<a id="pl.98.16"></a><var>98.16</var>special census must not be taken into consideration.<br/>
<a id="pl.98.17"></a><var>98.17</var>(b) In calculations relating to fire state aid requiring the use of estimated market <br/>
<a id="pl.98.18"></a><var>98.18</var>value property figures, only the latest available estimated market value property figures <br/>
<a id="pl.98.19"></a><var>98.19</var>may be used.<br/>
<br/>
<a id="bill.7.6.0"></a><a id="pl.98.20"></a><var>98.20</var>    Sec. 6. Minnesota Statutes 2010, section 88.51, subdivision 3, is amended to read:<br/>
<a id="pl.98.21"></a><var>98.21</var>    Subd. 3. <b>Determination of market value.</b> In determining the net tax capacity of <br/>
<a id="pl.98.22"></a><var>98.22</var>property within any taxing district the value of the surface of lands within any auxiliary <br/>
<a id="pl.98.23"></a><var>98.23</var>forest therein, as determined by the county board under the provisions of section 
         <statute_ref>88.48, <br/>
<a id="pl.98.24"></a><var>98.24</var>subdivision 3
         </statute_ref>, shall, for all purposes except the levying of taxes on lands within any such <br/>
<a id="pl.98.25"></a><var>98.25</var>forest, be deemed the estimated market value thereof.<br/>
<br/>
<a id="bill.7.7.0"></a><a id="pl.98.26"></a><var>98.26</var>    Sec. 7. Minnesota Statutes 2010, section 103B.245, subdivision 3, is amended to read:<br/>
<a id="pl.98.27"></a><var>98.27</var>    Subd. 3. <b>Tax.</b> After adoption of the ordinance under subdivision 2, a local <br/>
<a id="pl.98.28"></a><var>98.28</var>government unit may annually levy a tax on all taxable property in the district for the <br/>
<a id="pl.98.29"></a><var>98.29</var>purposes for which the tax district is established. The tax may not exceed 0.02418 percent <br/>
<a id="pl.98.30"></a><var>98.30</var>of estimated market value on taxable property located in rural towns other than urban <br/>
<a id="pl.98.31"></a><var>98.31</var>towns, unless allowed by resolution of the town electors. The proceeds of the tax shall <br/>
<a id="pl.98.32"></a><var>98.32</var>be paid into a fund reserved for these purposes. Any proceeds remaining in the reserve <br/>
<a id="pl.98.33"></a><var>98.33</var>fund at the time the tax is terminated or the district is dissolved shall be transferred and <br/>
<a id="pl.99.1"></a><var>99.1</var>irrevocably pledged to the debt service fund of the local unit to be used solely to reduce <br/>
<a id="pl.99.2"></a><var>99.2</var>tax levies for bonded indebtedness of taxable property in the district.<br/>
<br/>
<a id="bill.7.8.0"></a><a id="pl.99.3"></a><var>99.3</var>    Sec. 8. Minnesota Statutes 2010, section 103B.251, subdivision 8, is amended to read:<br/>
<a id="pl.99.4"></a><var>99.4</var>    Subd. 8. <b>Tax.</b> (a) For the payment of principal and interest on the bonds issued <br/>
<a id="pl.99.5"></a><var>99.5</var>under subdivision 7 and the payment required under subdivision 6, the county shall <br/>
<a id="pl.99.6"></a><var>99.6</var>irrevocably pledge and appropriate the proceeds of a tax levied on all taxable property <br/>
<a id="pl.99.7"></a><var>99.7</var>located within the territory of the watershed management organization or subwatershed <br/>
<a id="pl.99.8"></a><var>99.8</var>unit for which the bonds are issued. Each year until the reserve for payment of the bonds <br/>
<a id="pl.99.9"></a><var>99.9</var>is sufficient to retire the bonds, the county shall levy on all taxable property in the territory <br/>
<a id="pl.99.10"></a><var>99.10</var>of the organization or unit, without respect to any statutory or other limitation on taxes, an <br/>
<a id="pl.99.11"></a><var>99.11</var>amount of taxes sufficient to pay principal and interest on the bonds and to restore any <br/>
<a id="pl.99.12"></a><var>99.12</var>deficiencies in reserves required to be maintained for payment of the bonds.<br/>
<a id="pl.99.13"></a><var>99.13</var>(b) The tax levied on rural towns other than urban towns may not exceed 0.02418 <br/>
<a id="pl.99.14"></a><var>99.14</var>percent of taxable estimated market value, unless approved by resolution of the town <br/>
<a id="pl.99.15"></a><var>99.15</var>electors.<br/>
<a id="pl.99.16"></a><var>99.16</var>(c) If at any time the amounts available from the levy on property in the territory of <br/>
<a id="pl.99.17"></a><var>99.17</var>the organization are insufficient to pay principal and interest on the bonds when due, the <br/>
<a id="pl.99.18"></a><var>99.18</var>county shall make payment from any available funds in the county treasury.<br/>
<a id="pl.99.19"></a><var>99.19</var>(d) The amount of any taxes which are required to be levied outside of the territory <br/>
<a id="pl.99.20"></a><var>99.20</var>of the watershed management organization or unit or taken from the general funds of the <br/>
<a id="pl.99.21"></a><var>99.21</var>county to pay principal or interest on the bonds shall be reimbursed to the county from <br/>
<a id="pl.99.22"></a><var>99.22</var>taxes levied within the territory of the watershed management organization or unit.<br/>
<br/>
<a id="bill.7.9.0"></a><a id="pl.99.23"></a><var>99.23</var>    Sec. 9. Minnesota Statutes 2010, section 103B.635, subdivision 2, is amended to read:<br/>
<a id="pl.99.24"></a><var>99.24</var>    Subd. 2. <b>Municipal funding of district.</b> (a) The governing body or board of <br/>
<a id="pl.99.25"></a><var>99.25</var>supervisors of each municipality in the district must provide the funds necessary to meet <br/>
<a id="pl.99.26"></a><var>99.26</var>its proportion of the total cost determined by the board, provided the total funding from <br/>
<a id="pl.99.27"></a><var>99.27</var>all municipalities in the district for the costs shall not exceed an amount equal to .00242 <br/>
<a id="pl.99.28"></a><var>99.28</var>percent of the total taxable estimated market value within the district, unless three-fourths <br/>
<a id="pl.99.29"></a><var>99.29</var>of the municipalities in the district pass a resolution concurring to the additional costs.<br/>
<a id="pl.99.30"></a><var>99.30</var>(b) The funds must be deposited in the treasury of the district in amounts and at <br/>
<a id="pl.99.31"></a><var>99.31</var>times as the treasurer of the district requires.<br/>
<br/>
<a id="bill.7.10.0"></a><a id="pl.99.32"></a><var>99.32</var>    Sec. 10. Minnesota Statutes 2010, section 103B.691, subdivision 2, is amended to read:<br/>
<a id="pl.100.1"></a><var>100.1</var>    Subd. 2. <b>Municipal funding of district.</b> (a) The governing body or board of <br/>
<a id="pl.100.2"></a><var>100.2</var>supervisors of each municipality in the district shall provide the funds necessary to <br/>
<a id="pl.100.3"></a><var>100.3</var>meet its proportion of the total cost to be borne by the municipalities as finally certified <br/>
<a id="pl.100.4"></a><var>100.4</var>by the board.<br/>
<a id="pl.100.5"></a><var>100.5</var>(b) The municipality's funds may be raised by any means within the authority of <br/>
<a id="pl.100.6"></a><var>100.6</var>the municipality. The municipalities may each levy a tax not to exceed .02418 percent of <br/>
<a id="pl.100.7"></a><var>100.7</var>taxable estimated market value on the taxable property located in the district to provide <br/>
<a id="pl.100.8"></a><var>100.8</var>the funds. The levy shall be within all other limitations provided by law.<br/>
<a id="pl.100.9"></a><var>100.9</var>(c) The funds must be deposited into the treasury of the district in amounts and at <br/>
<a id="pl.100.10"></a><var>100.10</var>times as the treasurer of the district requires.<br/>
<br/>
<a id="bill.7.11.0"></a><a id="pl.100.11"></a><var>100.11</var>    Sec. 11. Minnesota Statutes 2010, section 103D.905, subdivision 2, is amended to read:<br/>
<a id="pl.100.12"></a><var>100.12</var>    Subd. 2. <b>Organizational expense fund.</b> (a) An organizational expense fund, <br/>
<a id="pl.100.13"></a><var>100.13</var>consisting of an ad valorem tax levy, shall not exceed 0.01596 percent of taxable estimated <br/>
<a id="pl.100.14"></a><var>100.14</var>market value, or $60,000, whichever is less. The money in the fund shall be used for <br/>
<a id="pl.100.15"></a><var>100.15</var>organizational expenses and preparation of the watershed management plan for projects.<br/>
<a id="pl.100.16"></a><var>100.16</var>(b) The managers may borrow from the affected counties up to 75 percent of the <br/>
<a id="pl.100.17"></a><var>100.17</var>anticipated funds to be collected from the organizational expense fund levy and the <br/>
<a id="pl.100.18"></a><var>100.18</var>counties affected may make the advancements.<br/>
<a id="pl.100.19"></a><var>100.19</var>(c) The advancement of anticipated funds shall be apportioned among affected <br/>
<a id="pl.100.20"></a><var>100.20</var>counties in the same ratio as the net tax capacity of the area of the counties within <br/>
<a id="pl.100.21"></a><var>100.21</var>the watershed district bears to the net tax capacity of the entire watershed district. If a <br/>
<a id="pl.100.22"></a><var>100.22</var>watershed district is enlarged, an organizational expense fund may be levied against the <br/>
<a id="pl.100.23"></a><var>100.23</var>area added to the watershed district in the same manner as provided in this subdivision.<br/>
<a id="pl.100.24"></a><var>100.24</var>(d) Unexpended funds collected for the organizational expense may be transferred to <br/>
<a id="pl.100.25"></a><var>100.25</var>the administrative fund and used for the purposes of the administrative fund.<br/>
<br/>
<a id="bill.7.12.0"></a><a id="pl.100.26"></a><var>100.26</var>    Sec. 12. Minnesota Statutes 2010, section 103D.905, subdivision 3, is amended to read:<br/>
<a id="pl.100.27"></a><var>100.27</var>    Subd. 3. <b>General fund.</b> A general fund, consisting of an ad valorem tax levy, may <br/>
<a id="pl.100.28"></a><var>100.28</var>not exceed 0.048 percent of taxable estimated market value, or $250,000, whichever is <br/>
<a id="pl.100.29"></a><var>100.29</var>less. The money in the fund shall be used for general administrative expenses and for <br/>
<a id="pl.100.30"></a><var>100.30</var>the construction or implementation and maintenance of projects of common benefit to <br/>
<a id="pl.100.31"></a><var>100.31</var>the watershed district. The managers may make an annual levy for the general fund as <br/>
<a id="pl.100.32"></a><var>100.32</var>provided in section 
         <statute_ref>103D.911</statute_ref>. In addition to the annual general levy, the managers may <br/>
<a id="pl.100.33"></a><var>100.33</var>annually levy a tax not to exceed 0.00798 percent of taxable estimated market value <br/>
<a id="pl.100.34"></a><var>100.34</var>for a period not to exceed 15 consecutive years to pay the cost attributable to the basic <br/>
<a id="pl.101.1"></a><var>101.1</var>water management features of projects initiated by petition of a political subdivision <br/>
<a id="pl.101.2"></a><var>101.2</var>within the watershed district or by petition of at least 50 resident owners whose property <br/>
<a id="pl.101.3"></a><var>101.3</var>is within the watershed district.<br/>
<br/>
<a id="bill.7.13.0"></a><a id="pl.101.4"></a><var>101.4</var>    Sec. 13. Minnesota Statutes 2010, section 103D.905, subdivision 8, is amended to read:<br/>
<a id="pl.101.5"></a><var>101.5</var>    Subd. 8. <b>Survey and data acquisition fund.</b> (a) A survey and data acquisition fund <br/>
<a id="pl.101.6"></a><var>101.6</var>is established and used only if other funds are not available to the watershed district to pay <br/>
<a id="pl.101.7"></a><var>101.7</var>for making necessary surveys and acquiring data.<br/>
<a id="pl.101.8"></a><var>101.8</var>(b) The survey and data acquisition fund consists of the proceeds of a property tax <br/>
<a id="pl.101.9"></a><var>101.9</var>that can be levied only once every five years. The levy may not exceed 0.02418 percent of <br/>
<a id="pl.101.10"></a><var>101.10</var>taxable estimated market value.<br/>
<a id="pl.101.11"></a><var>101.11</var>(c) The balance of the survey and data acquisition fund may not exceed $50,000.<br/>
<a id="pl.101.12"></a><var>101.12</var>(d) In a subsequent proceeding for a project where a survey has been made, the <br/>
<a id="pl.101.13"></a><var>101.13</var>attributable cost of the survey as determined by the managers shall be included as a part of <br/>
<a id="pl.101.14"></a><var>101.14</var>the cost of the work and the sum shall be repaid to the survey and data acquisition fund.<br/>
<br/>
<a id="bill.7.14.0"></a><a id="pl.101.15"></a><var>101.15</var>    Sec. 14. Minnesota Statutes 2010, section 117.025, subdivision 7, is amended to read:<br/>
<a id="pl.101.16"></a><var>101.16</var>    Subd. 7. <b>Structurally substandard.</b> "Structurally substandard" means a building:<br/>
<a id="pl.101.17"></a><var>101.17</var>(1) that was inspected by the appropriate local government and cited for one or more <br/>
<a id="pl.101.18"></a><var>101.18</var>enforceable housing, maintenance, or building code violations;<br/>
<a id="pl.101.19"></a><var>101.19</var>(2) in which the cited building code violations involve one or more of the following:<br/>
<a id="pl.101.20"></a><var>101.20</var>(i) a roof and roof framing element;<br/>
<a id="pl.101.21"></a><var>101.21</var>(ii) support walls, beams, and headers;<br/>
<a id="pl.101.22"></a><var>101.22</var>(iii) foundation, footings, and subgrade conditions;<br/>
<a id="pl.101.23"></a><var>101.23</var>(iv) light and ventilation;<br/>
<a id="pl.101.24"></a><var>101.24</var>(v) fire protection, including egress;<br/>
<a id="pl.101.25"></a><var>101.25</var>(vi) internal utilities, including electricity, gas, and water;<br/>
<a id="pl.101.26"></a><var>101.26</var>(vii) flooring and flooring elements; or<br/>
<a id="pl.101.27"></a><var>101.27</var>(viii) walls, insulation, and exterior envelope;<br/>
<a id="pl.101.28"></a><var>101.28</var>(3) in which the cited housing, maintenance, or building code violations have not <br/>
<a id="pl.101.29"></a><var>101.29</var>been remedied after two notices to cure the noncompliance; and<br/>
<a id="pl.101.30"></a><var>101.30</var>(4) has uncured housing, maintenance, and building code violations, satisfaction of <br/>
<a id="pl.101.31"></a><var>101.31</var>which would cost more than 50 percent of the assessor's taxable estimated market value <br/>
<a id="pl.101.32"></a><var>101.32</var>for the building, excluding land value, as determined under section 
         <statute_ref>273.11</statute_ref> for property <br/>
<a id="pl.101.33"></a><var>101.33</var>taxes payable in the year in which the condemnation is commenced.<br/>
<a id="pl.102.1"></a><var>102.1</var>A local government is authorized to seek from a judge or magistrate an administrative <br/>
<a id="pl.102.2"></a><var>102.2</var>warrant to gain access to inspect a specific building in a proposed development or <br/>
<a id="pl.102.3"></a><var>102.3</var>redevelopment area upon showing of probable cause that a specific code violation has <br/>
<a id="pl.102.4"></a><var>102.4</var>occurred and that the violation has not been cured, and that the owner has denied the local <br/>
<a id="pl.102.5"></a><var>102.5</var>government access to the property. Items of evidence that may support a conclusion of <br/>
<a id="pl.102.6"></a><var>102.6</var>probable cause may include recent fire or police inspections, housing inspection, exterior <br/>
<a id="pl.102.7"></a><var>102.7</var>evidence of deterioration, or other similar reliable evidence of deterioration in the specific <br/>
<a id="pl.102.8"></a><var>102.8</var>building.<br/>
<br/>
<a id="bill.7.15.0"></a><a id="pl.102.9"></a><var>102.9</var>    Sec. 15. Minnesota Statutes 2010, section 127A.48, subdivision 1, is amended to read:<br/>
<a id="pl.102.10"></a><var>102.10</var>    Subdivision 1. <b>Computation.</b> The Department of Revenue must annually conduct <br/>
<a id="pl.102.11"></a><var>102.11</var>an assessment/sales ratio study of the taxable property in each county, city, town, and <br/>
<a id="pl.102.12"></a><var>102.12</var>school district in accordance with the procedures in subdivisions 2 and 3. Based upon the <br/>
<a id="pl.102.13"></a><var>102.13</var>results of this assessment/sales ratio study, the Department of Revenue must determine an <br/>
<a id="pl.102.14"></a><var>102.14</var>aggregate equalized net tax capacity for the various classes of taxable property in each <br/>
<a id="pl.102.15"></a><var>102.15</var>taxing district, the aggregate of which tax capacity shall be is designated as the adjusted <br/>
<a id="pl.102.16"></a><var>102.16</var>net tax capacity. The adjusted net tax capacity must be reduced by the captured tax <br/>
<a id="pl.102.17"></a><var>102.17</var>capacity of tax increment districts under section 469.177, subdivision 2, fiscal disparities <br/>
<a id="pl.102.18"></a><var>102.18</var>contribution tax capacities under sections 276A.06 and 473F.08, and the tax capacity of <br/>
<a id="pl.102.19"></a><var>102.19</var>transmission lines required to be subtracted from the local tax base under section 273.425; <br/>
<a id="pl.102.20"></a><var>102.20</var>and increased by fiscal disparities distribution tax capacities under sections 276A.06 and <br/>
<a id="pl.102.21"></a><var>102.21</var>473F.08. The adjusted net tax capacities shall be determined using the net tax capacity <br/>
<a id="pl.102.22"></a><var>102.22</var>percentages in effect for the assessment year following the assessment year of the study. <br/>
<a id="pl.102.23"></a><var>102.23</var>The Department of Revenue must make whatever estimates are necessary to account for <br/>
<a id="pl.102.24"></a><var>102.24</var>changes in the classification system. The Department of Revenue may incur the expense <br/>
<a id="pl.102.25"></a><var>102.25</var>necessary to make the determinations. The commissioner of revenue may reimburse any <br/>
<a id="pl.102.26"></a><var>102.26</var>county or governmental official for requested services performed in ascertaining the <br/>
<a id="pl.102.27"></a><var>102.27</var>adjusted net tax capacity. On or before March 15 annually, the Department of Revenue <br/>
<a id="pl.102.28"></a><var>102.28</var>shall file with the chair of the Tax Committee of the house of representatives and the <br/>
<a id="pl.102.29"></a><var>102.29</var>chair of the Committee on Taxes and Tax laws of the senate a report of adjusted net tax <br/>
<a id="pl.102.30"></a><var>102.30</var>capacities for school districts. On or before June 15 annually, the Department of Revenue <br/>
<a id="pl.102.31"></a><var>102.31</var>shall file its final report on the adjusted net tax capacities for school districts established <br/>
<a id="pl.102.32"></a><var>102.32</var>by the previous year's assessments and the current year's net tax capacity percentages with <br/>
<a id="pl.102.33"></a><var>102.33</var>the commissioner of education and each county auditor for those school districts for <br/>
<a id="pl.102.34"></a><var>102.34</var>which the auditor has the responsibility for determination of local tax rates. A copy of <br/>
<a id="pl.102.35"></a><var>102.35</var>the report so filed shall be mailed to the clerk of each school district involved and to the <br/>
<a id="pl.103.1"></a><var>103.1</var>county assessor or supervisor of assessments of the county or counties in which each <br/>
<a id="pl.103.2"></a><var>103.2</var>school district is located.<br/>
<a id="pl.103.3"></a><var>103.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.16.0"></a><a id="pl.103.4"></a><var>103.4</var>    Sec. 16. Minnesota Statutes 2010, section 138.053, is amended to read:<br/>
<a id="pl.103.5"></a><var>103.5</var><b>138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR </b><br/>
<a id="pl.103.6"></a><var>103.6</var><b>TOWNS.</b><br/>
<a id="pl.103.7"></a><var>103.7</var>The governing body of any home rule charter or statutory city or town may annually <br/>
<a id="pl.103.8"></a><var>103.8</var>appropriate from its general fund an amount not to exceed 0.02418 percent of taxable <br/>
<a id="pl.103.9"></a><var>103.9</var>estimated market value, derived from ad valorem taxes on property or other revenues, <br/>
<a id="pl.103.10"></a><var>103.10</var>to be paid to the historical society of its respective county to be used for the promotion <br/>
<a id="pl.103.11"></a><var>103.11</var>of historical work and to aid in defraying the expenses of carrying on the historical <br/>
<a id="pl.103.12"></a><var>103.12</var>work in the county. No city or town may appropriate any funds for the benefit of any <br/>
<a id="pl.103.13"></a><var>103.13</var>historical society unless the society is affiliated with and approved by the Minnesota <br/>
<a id="pl.103.14"></a><var>103.14</var>Historical Society.<br/>
<br/>
<a id="bill.7.17.0"></a><a id="pl.103.15"></a><var>103.15</var>    Sec. 17. Minnesota Statutes 2010, section 144F.01, subdivision 4, is amended to read:<br/>
<a id="pl.103.16"></a><var>103.16</var>    Subd. 4. <b>Property tax levy authority.</b> The district's board may levy a tax on the <br/>
<a id="pl.103.17"></a><var>103.17</var>taxable real and personal property in the district. The ad valorem tax levy may not <br/>
<a id="pl.103.18"></a><var>103.18</var>exceed 0.048 percent of the taxable estimated market value of the district or $400,000, <br/>
<a id="pl.103.19"></a><var>103.19</var>whichever is less. The proceeds of the levy must be used as provided in subdivision 5. <br/>
<a id="pl.103.20"></a><var>103.20</var>The board shall certify the levy at the times as provided under section 
         <statute_ref>275.07</statute_ref>. The board <br/>
<a id="pl.103.21"></a><var>103.21</var>shall provide the county with whatever information is necessary to identify the property <br/>
<a id="pl.103.22"></a><var>103.22</var>that is located within the district. If the boundaries include a part of a parcel, the entire <br/>
<a id="pl.103.23"></a><var>103.23</var>parcel shall be included in the district. The county auditors must spread, collect, and <br/>
<a id="pl.103.24"></a><var>103.24</var>distribute the proceeds of the tax at the same time and in the same manner as provided by <br/>
<a id="pl.103.25"></a><var>103.25</var>law for all other property taxes.<br/>
<br/>
<a id="bill.7.18.0"></a><a id="pl.103.26"></a><var>103.26</var>    Sec. 18. Minnesota Statutes 2010, section 162.07, subdivision 3, is amended to read:<br/>
<a id="pl.103.27"></a><var>103.27</var>    Subd. 3. <b>Computation for rural counties.</b> An amount equal to a levy of 0.01596 <br/>
<a id="pl.103.28"></a><var>103.28</var>percent on each rural county's total taxable estimated market value for the last preceding <br/>
<a id="pl.103.29"></a><var>103.29</var>calendar year shall be computed and shall be subtracted from the county's total estimated <br/>
<a id="pl.103.30"></a><var>103.30</var>construction costs. The result thereof shall be the money needs of the county. For the <br/>
<a id="pl.103.31"></a><var>103.31</var>purpose of this section, "rural counties" means all counties having a population of less <br/>
<a id="pl.103.32"></a><var>103.32</var>than 175,000.<br/>
<br/>
<a id="bill.7.19.0"></a><a id="pl.104.1"></a><var>104.1</var>    Sec. 19. Minnesota Statutes 2010, section 162.07, subdivision 4, is amended to read:<br/>
<a id="pl.104.2"></a><var>104.2</var>    Subd. 4. <b>Computation for urban counties.</b> An amount equal to a levy of 0.00967 <br/>
<a id="pl.104.3"></a><var>104.3</var>percent on each urban county's total taxable estimated market value for the last preceding <br/>
<a id="pl.104.4"></a><var>104.4</var>calendar year shall be computed and shall be subtracted from the county's total estimated <br/>
<a id="pl.104.5"></a><var>104.5</var>construction costs. The result thereof shall be the money needs of the county. For <br/>
<a id="pl.104.6"></a><var>104.6</var>the purpose of this section, "urban counties" means all counties having a population <br/>
<a id="pl.104.7"></a><var>104.7</var>of 175,000 or more.<br/>
<br/>
<a id="bill.7.20.0"></a><a id="pl.104.8"></a><var>104.8</var>    Sec. 20. Minnesota Statutes 2010, section 163.04, subdivision 3, is amended to read:<br/>
<a id="pl.104.9"></a><var>104.9</var>    Subd. 3. <b>Bridges within certain cities.</b> When the council of any statutory city or <br/>
<a id="pl.104.10"></a><var>104.10</var>city of the third or fourth class may determine that it is necessary to build or improve any <br/>
<a id="pl.104.11"></a><var>104.11</var>bridge or bridges, including approaches thereto, and any dam or retaining works connected <br/>
<a id="pl.104.12"></a><var>104.12</var>therewith, upon or forming a part of streets or highways either wholly or partly within <br/>
<a id="pl.104.13"></a><var>104.13</var>its limits, the county board shall appropriate one-half of the money as may be necessary <br/>
<a id="pl.104.14"></a><var>104.14</var>therefor from the county road and bridge fund, not exceeding during any year one-half <br/>
<a id="pl.104.15"></a><var>104.15</var>the amount of taxes paid into the county road and bridge fund during the preceding year, <br/>
<a id="pl.104.16"></a><var>104.16</var>on property within the corporate limits of the city. The appropriation shall be made upon <br/>
<a id="pl.104.17"></a><var>104.17</var>the petition of the council, which petition shall be filed by the council with the county <br/>
<a id="pl.104.18"></a><var>104.18</var>board prior to the fixing by the board of the annual county tax levy. The county board <br/>
<a id="pl.104.19"></a><var>104.19</var>shall determine the plans and specifications, shall let all necessary contracts, shall have <br/>
<a id="pl.104.20"></a><var>104.20</var>charge of construction, and upon its request, warrants in payment thereof shall be issued <br/>
<a id="pl.104.21"></a><var>104.21</var>by the county auditor, from time to time, as the construction work proceeds. Any unpaid <br/>
<a id="pl.104.22"></a><var>104.22</var>balance may be paid or advanced by the city. On petition of the council, the appropriations <br/>
<a id="pl.104.23"></a><var>104.23</var>of the county board, during not to exceed three successive years, may be made to apply <br/>
<a id="pl.104.24"></a><var>104.24</var>on the construction of the same items and to repay any money advanced by the city in <br/>
<a id="pl.104.25"></a><var>104.25</var>the construction thereof. None of the provisions of this section shall be construed to <br/>
<a id="pl.104.26"></a><var>104.26</var>be mandatory as applied to any city whose estimated market value exceeds $2,100 per <br/>
<a id="pl.104.27"></a><var>104.27</var>capita of its population.<br/>
<br/>
<a id="bill.7.21.0"></a><a id="pl.104.28"></a><var>104.28</var>    Sec. 21. Minnesota Statutes 2010, section 163.06, subdivision 6, is amended to read:<br/>
<a id="pl.104.29"></a><var>104.29</var>    Subd. 6. <b>Expenditure in certain counties.</b> In any county having not less than 95 <br/>
<a id="pl.104.30"></a><var>104.30</var>nor more than 105 full and fractional townships, and having a an estimated market value <br/>
<a id="pl.104.31"></a><var>104.31</var>of not less than $12,000,000 nor more than $21,000,000, exclusive of money and credits, <br/>
<a id="pl.104.32"></a><var>104.32</var>the county board, by resolution, may expend the funds provided in subdivision 4 in any <br/>
<a id="pl.104.33"></a><var>104.33</var>organized or unorganized township or portion thereof in such county.<br/>
<br/>
<a id="bill.7.22.0"></a><a id="pl.105.1"></a><var>105.1</var>    Sec. 22. Minnesota Statutes 2010, section 165.10, subdivision 1, is amended to read:<br/>
<a id="pl.105.2"></a><var>105.2</var>    Subdivision 1. <b>Certain counties may issue and sell.</b> The county board of any <br/>
<a id="pl.105.3"></a><var>105.3</var>county having no outstanding road and bridge bonds may issue and sell county road bonds <br/>
<a id="pl.105.4"></a><var>105.4</var>in an amount not exceeding 0.12089 percent of the estimated market value of the taxable <br/>
<a id="pl.105.5"></a><var>105.5</var>property within the county exclusive of money and credits, for the purpose of constructing, <br/>
<a id="pl.105.6"></a><var>105.6</var>reconstructing, improving, or maintaining any bridge or bridges on any highway under its <br/>
<a id="pl.105.7"></a><var>105.7</var>jurisdiction, without submitting the matter to a vote of the electors of the county.<br/>
<br/>
<a id="bill.7.23.0"></a><a id="pl.105.8"></a><var>105.8</var>    Sec. 23. Minnesota Statutes 2010, section 272.03, is amended by adding a subdivision <br/>
<a id="pl.105.9"></a><var>105.9</var>to read:<br/>
<a id="pl.105.10"></a><var>105.10</var>    Subd. 14. <b>Estimated market value.</b> "Estimated market value" means the assessor's <br/>
<a id="pl.105.11"></a><var>105.11</var>determination of market value, including the effects of any orders made under section <br/>
<a id="pl.105.12"></a><var>105.12</var>270.12 or chapter 274, for the parcel. The provisions of section 273.032 apply for certain <br/>
<a id="pl.105.13"></a><var>105.13</var>uses in determining the total estimated market value for the taxing jurisdiction.<br/>
<br/>
<a id="bill.7.24.0"></a><a id="pl.105.14"></a><var>105.14</var>    Sec. 24. Minnesota Statutes 2010, section 272.03, is amended by adding a subdivision <br/>
<a id="pl.105.15"></a><var>105.15</var>to read:<br/>
<a id="pl.105.16"></a><var>105.16</var>    Subd. 15. <b>Taxable market value.</b> "Taxable market value" means estimated market <br/>
<a id="pl.105.17"></a><var>105.17</var>value for the parcel as reduced by market value exclusions, deferments of value, or other <br/>
<a id="pl.105.18"></a><var>105.18</var>adjustments, required by law, that reduce market value before the application of class rates.<br/>
<br/>
<a id="bill.7.25.0"></a><a id="pl.105.19"></a><var>105.19</var>    Sec. 25. Minnesota Statutes 2010, section 273.032, is amended to read:<br/>
<a id="pl.105.20"></a><var>105.20</var><b>273.032 MARKET VALUE DEFINITION.</b><br/>
<a id="pl.105.21"></a><var>105.21</var>(a) Unless otherwise provided, for the purpose of determining any property tax <br/>
<a id="pl.105.22"></a><var>105.22</var>levy limitation based on market value or any limit on net debt, the issuance of bonds, <br/>
<a id="pl.105.23"></a><var>105.23</var>certificates of indebtedness, or capital notes based on market value, any qualification to <br/>
<a id="pl.105.24"></a><var>105.24</var>receive state aid based on market value, or any state aid amount based on market value, <br/>
<a id="pl.105.25"></a><var>105.25</var>the terms "market value," "taxable estimated market value," and "market valuation," <br/>
<a id="pl.105.26"></a><var>105.26</var>whether equalized or unequalized, mean the total taxable estimated market value of <br/>
<a id="pl.105.27"></a><var>105.27</var>taxable property within the local unit of government before any of the following or <br/>
<a id="pl.105.28"></a><var>105.28</var>similar adjustments for:<br/>
<a id="pl.105.29"></a><var>105.29</var>(1) the market value exclusions under:<br/>
<a id="pl.105.30"></a><var>105.30</var>(i) section 273.11, subdivisions 14a and 14c (vacant platted land);<br/>
<a id="pl.105.31"></a><var>105.31</var>(ii) section 
<statute_ref>273.11, subdivision 16</statute_ref> (certain improvements to homestead property);<br/>
<a id="pl.105.32"></a><var>105.32</var>(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business <br/>
<a id="pl.105.33"></a><var>105.33</var>properties);<br/>
<a id="pl.106.1"></a><var>106.1</var>(iv) section 273.11, subdivision 21 (homestead property damaged by mold);<br/>
<a id="pl.106.2"></a><var>106.2</var>(v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);<br/>
<a id="pl.106.3"></a><var>106.3</var>(vi) section 273.13, subdivision 34 (homestead of a disabled veteran, spouse, or <br/>
<a id="pl.106.4"></a><var>106.4</var>caregiver);<br/>
<a id="pl.106.5"></a><var>106.5</var>(vii) section 273.13, subdivision 35 (homestead market value exclusion); or<br/>
<a id="pl.106.6"></a><var>106.6</var>(2) the deferment of value under:<br/>
<a id="pl.106.7"></a><var>106.7</var>(i) the Minnesota Agricultural Property Tax Law, section 273.111;<br/>
<a id="pl.106.8"></a><var>106.8</var>(ii) the aggregate resource preservation law, section 273.1115;<br/>
<a id="pl.106.9"></a><var>106.9</var>(iii) the Minnesota Open Space Property Tax Law, section 273.112;<br/>
<a id="pl.106.10"></a><var>106.10</var>(iv) the rural preserves property tax program, section 273.114; or<br/>
<a id="pl.106.11"></a><var>106.11</var>(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or<br/>
<a id="pl.106.12"></a><var>106.12</var>(3) the adjustments to tax capacity for:<br/>
<a id="pl.106.13"></a><var>106.13</var> (i) tax increment, financing under sections 469.174 to 469.1794;<br/>
<a id="pl.106.14"></a><var>106.14</var>(ii) fiscal disparity, disparities under chapter 276A or 473F; or <br/>
<a id="pl.106.15"></a><var>106.15</var>(iii) powerline credit, or wind energy values, but after the limited market adjustments <br/>
<a id="pl.106.16"></a><var>106.16</var>under section 
<statute_ref>273.11, subdivision 1a</statute_ref>, and after the market value exclusions of certain <br/>
<a id="pl.106.17"></a><var>106.17</var>improvements to homestead property under section 
<statute_ref>273.11, subdivision 16</statute_ref> under section <br/>
<a id="pl.106.18"></a><var>106.18</var>273.425.<br/>
<a id="pl.106.19"></a><var>106.19</var>(b) Estimated market value under paragraph (a) also includes the market value <br/>
<a id="pl.106.20"></a><var>106.20</var>of tax exempt property if the applicable law specifically provides that the limitation, <br/>
<a id="pl.106.21"></a><var>106.21</var>qualification, or aid calculation includes tax exempt property.<br/>
<a id="pl.106.22"></a><var>106.22</var>(c) Unless otherwise provided, "market value," "taxable estimated market value," <br/>
<a id="pl.106.23"></a><var>106.23</var>and "market valuation" for purposes of this paragraph  property tax levy limitations and <br/>
<a id="pl.106.24"></a><var>106.24</var>calculation of state aid, refer to the taxable estimated market value for the previous <br/>
<a id="pl.106.25"></a><var>106.25</var>assessment year and for purposes of limits on net debt, the issuance of bonds, certificates of <br/>
<a id="pl.106.26"></a><var>106.26</var>indebtedness, or capital notes refer to the estimated market value as last finally equalized.<br/>
<a id="pl.106.27"></a><var>106.27</var>For the purpose of determining any net debt limit based on market value, or any limit <br/>
<a id="pl.106.28"></a><var>106.28</var>on the issuance of bonds, certificates of indebtedness, or capital notes based on market <br/>
<a id="pl.106.29"></a><var>106.29</var>value, the terms "market value," "taxable market value," and "market valuation," whether <br/>
<a id="pl.106.30"></a><var>106.30</var>equalized or unequalized, mean the total taxable market value of property within the local <br/>
<a id="pl.106.31"></a><var>106.31</var>unit of government before any adjustments for tax increment, fiscal disparity, powerline <br/>
<a id="pl.106.32"></a><var>106.32</var>credit, or wind energy values, but after the limited market value adjustments under section <br/>
<a id="pl.106.33"></a><var>106.33</var><statute_ref>273.11</statute_ref>, subdivision 1a, and after the market value exclusions of certain improvements to <br/>
<a id="pl.106.34"></a><var>106.34</var>homestead property under section 
<statute_ref>273.11</statute_ref>, subdivision 16. Unless otherwise provided, <br/>
<a id="pl.106.35"></a><var>106.35</var>"market value," "taxable market value," and "market valuation" for purposes of this <br/>
<a id="pl.106.36"></a><var>106.36</var>paragraph, mean the taxable market value as last finally equalized.<br/>
<a id="pl.107.1"></a><var>107.1</var>(d) For purposes of a provision of a home rule charter or of any special law that is <br/>
<a id="pl.107.2"></a><var>107.2</var>not codified in the statutes and that imposes a levy limitation based on market value or <br/>
<a id="pl.107.3"></a><var>107.3</var>any limit on debt, the issuance of bonds, certificates of indebtedness, or capital notes <br/>
<a id="pl.107.4"></a><var>107.4</var>based on market value, the terms "market value," "taxable market value," and "market <br/>
<a id="pl.107.5"></a><var>107.5</var>valuation," whether equalized or unequalized, mean "estimated market value" as defined <br/>
<a id="pl.107.6"></a><var>107.6</var>in paragraph (a).<br/>
<br/>
<a id="bill.7.26.0"></a><a id="pl.107.7"></a><var>107.7</var>    Sec. 26. Minnesota Statutes 2010, section 273.11, subdivision 1, is amended to read:<br/>
<a id="pl.107.8"></a><var>107.8</var>    Subdivision 1. <b>Generally.</b> Except as provided in this section or section 
         <statute_ref>273.17, <br/>
<a id="pl.107.9"></a><var>107.9</var>subdivision 1
         </statute_ref>, all property shall be valued at its market value. The market value as <br/>
<a id="pl.107.10"></a><var>107.10</var>determined pursuant to this section shall be stated such that any amount under $100 is <br/>
<a id="pl.107.11"></a><var>107.11</var>rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100. <br/>
<a id="pl.107.12"></a><var>107.12</var>In estimating and determining such value, the assessor shall not adopt a lower or different <br/>
<a id="pl.107.13"></a><var>107.13</var>standard of value because the same is to serve as a basis of taxation, nor shall the assessor <br/>
<a id="pl.107.14"></a><var>107.14</var>adopt as a criterion of value the price for which such property would sell at a forced sale, <br/>
<a id="pl.107.15"></a><var>107.15</var>or in the aggregate with all the property in the town or district; but the assessor shall value <br/>
<a id="pl.107.16"></a><var>107.16</var>each article or description of property by itself, and at such sum or price as the assessor <br/>
<a id="pl.107.17"></a><var>107.17</var>believes the same to be fairly worth in money. The assessor shall take into account the <br/>
<a id="pl.107.18"></a><var>107.18</var>effect on the market value of property of environmental factors in the vicinity of the <br/>
<a id="pl.107.19"></a><var>107.19</var>property. In assessing any tract or lot of real property, the value of the land, exclusive of <br/>
<a id="pl.107.20"></a><var>107.20</var>structures and improvements, shall be determined, and also the value of all structures and <br/>
<a id="pl.107.21"></a><var>107.21</var>improvements thereon, and the aggregate value of the property, including all structures <br/>
<a id="pl.107.22"></a><var>107.22</var>and improvements, excluding the value of crops growing upon cultivated land. In valuing <br/>
<a id="pl.107.23"></a><var>107.23</var>real property upon which there is a mine or quarry, it shall be valued at such price as such <br/>
<a id="pl.107.24"></a><var>107.24</var>property, including the mine or quarry, would sell for at a fair, voluntary sale, for cash, <br/>
<a id="pl.107.25"></a><var>107.25</var>if the material being mined or quarried is not subject to taxation under section 
         <statute_ref>298.015</statute_ref> <br/>
<a id="pl.107.26"></a><var>107.26</var>and the mine or quarry is not exempt from the general property tax under section 
         <statute_ref>298.25</statute_ref>. <br/>
<a id="pl.107.27"></a><var>107.27</var>In valuing real property which is vacant, platted property shall be assessed as provided <br/>
<a id="pl.107.28"></a><var>107.28</var>in subdivision 14 subdivisions 14a and 14c. All property, or the use thereof, which is <br/>
<a id="pl.107.29"></a><var>107.29</var>taxable under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, or 
         <statute_ref>273.19</statute_ref>, shall be valued at the market <br/>
<a id="pl.107.30"></a><var>107.30</var>value of such property and not at the value of a leasehold estate in such property, or at <br/>
<a id="pl.107.31"></a><var>107.31</var>some lesser value than its market value.<br/>
<br/>
<a id="bill.7.27.0"></a><a id="pl.107.32"></a><var>107.32</var>    Sec. 27. Minnesota Statutes 2010, section 273.124, subdivision 3a, is amended to read:<br/>
<a id="pl.107.33"></a><var>107.33</var>    Subd. 3a. <b>Manufactured home park cooperative.</b> (a) When a manufactured home <br/>
<a id="pl.107.34"></a><var>107.34</var>park is owned by a corporation or association organized under chapter 308A or 308B, <br/>
<a id="pl.108.1"></a><var>108.1</var>and each person who owns a share or shares in the corporation or association is entitled <br/>
<a id="pl.108.2"></a><var>108.2</var>to occupy a lot within the park, the corporation or association may claim homestead <br/>
<a id="pl.108.3"></a><var>108.3</var>treatment for the park. Each lot must be designated by legal description or number, and <br/>
<a id="pl.108.4"></a><var>108.4</var>each lot is limited to not more than one-half acre of land.<br/>
<a id="pl.108.5"></a><var>108.5</var>(b) The manufactured home park shall be entitled to homestead treatment if all <br/>
<a id="pl.108.6"></a><var>108.6</var>of the following criteria are met:<br/>
<a id="pl.108.7"></a><var>108.7</var>(1) the occupant or the cooperative corporation or association is paying the ad <br/>
<a id="pl.108.8"></a><var>108.8</var>valorem property taxes and any special assessments levied against the land and structure <br/>
<a id="pl.108.9"></a><var>108.9</var>either directly, or indirectly through dues to the corporation or association; and<br/>
<a id="pl.108.10"></a><var>108.10</var>(2) the corporation or association organized under chapter 308A or 308B is wholly <br/>
<a id="pl.108.11"></a><var>108.11</var>owned by persons having a right to occupy a lot owned by the corporation or association.<br/>
<a id="pl.108.12"></a><var>108.12</var>(c) A charitable corporation, organized under the laws of Minnesota with no <br/>
<a id="pl.108.13"></a><var>108.13</var>outstanding stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) <br/>
<a id="pl.108.14"></a><var>108.14</var>tax-exempt status, qualifies for homestead treatment with respect to a manufactured home <br/>
<a id="pl.108.15"></a><var>108.15</var>park if its members hold residential participation warrants entitling them to occupy a lot <br/>
<a id="pl.108.16"></a><var>108.16</var>in the manufactured home park.<br/>
<a id="pl.108.17"></a><var>108.17</var>(d) "Homestead treatment" under this subdivision means the class rate provided for <br/>
<a id="pl.108.18"></a><var>108.18</var>class 4c property classified under section 
         <statute_ref>273.13, subdivision 25</statute_ref>, paragraph (d), clause (5), <br/>
<a id="pl.108.19"></a><var>108.19</var>item (ii). The homestead market value credit exclusion under section 
         <statute_ref>273.1384</statute_ref> 273.13, <br/>
<a id="pl.108.20"></a><var>108.20</var>subdivision 35, does not apply and the property taxes assessed against the park shall not <br/>
<a id="pl.108.21"></a><var>108.21</var>be included in the determination of taxes payable for rent paid under section 
         <statute_ref>290A.03</statute_ref>.<br/>
<a id="pl.108.22"></a><var>108.22</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.108.23"></a><var>108.23</var>thereafter.<br/>
<br/>
<a id="bill.7.28.0"></a><a id="pl.108.24"></a><var>108.24</var>    Sec. 28. Minnesota Statutes 2010, section 273.124, subdivision 13, is amended to read:<br/>
<a id="pl.108.25"></a><var>108.25</var>    Subd. 13. <b>Homestead application.</b> (a) A person who meets the homestead <br/>
<a id="pl.108.26"></a><var>108.26</var>requirements under subdivision 1 must file a homestead application with the county <br/>
<a id="pl.108.27"></a><var>108.27</var>assessor to initially obtain homestead classification.<br/>
<a id="pl.108.28"></a><var>108.28</var>    (b) The format and contents of a uniform homestead application shall be prescribed <br/>
<a id="pl.108.29"></a><var>108.29</var>by the commissioner of revenue. The application must clearly inform the taxpayer that <br/>
<a id="pl.108.30"></a><var>108.30</var>this application must be signed by all owners who occupy the property or by the qualifying <br/>
<a id="pl.108.31"></a><var>108.31</var>relative and returned to the county assessor in order for the property to receive homestead <br/>
<a id="pl.108.32"></a><var>108.32</var>treatment.<br/>
<a id="pl.108.33"></a><var>108.33</var>    (c) Every property owner applying for homestead classification must furnish to the <br/>
<a id="pl.108.34"></a><var>108.34</var>county assessor the Social Security number of each occupant who is listed as an owner <br/>
<a id="pl.108.35"></a><var>108.35</var>of the property on the deed of record, the name and address of each owner who does not <br/>
<a id="pl.109.1"></a><var>109.1</var>occupy the property, and the name and Social Security number of each owner's spouse who <br/>
<a id="pl.109.2"></a><var>109.2</var>occupies the property. The application must be signed by each owner who occupies the <br/>
<a id="pl.109.3"></a><var>109.3</var>property and by each owner's spouse who occupies the property, or, in the case of property <br/>
<a id="pl.109.4"></a><var>109.4</var>that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.<br/>
<a id="pl.109.5"></a><var>109.5</var>    If a property owner occupies a homestead, the property owner's spouse may not <br/>
<a id="pl.109.6"></a><var>109.6</var>claim another property as a homestead unless the property owner and the property owner's <br/>
<a id="pl.109.7"></a><var>109.7</var>spouse file with the assessor an affidavit or other proof required by the assessor stating that <br/>
<a id="pl.109.8"></a><var>109.8</var>the property qualifies as a homestead under subdivision 1, paragraph (e).<br/>
<a id="pl.109.9"></a><var>109.9</var>    Owners or spouses occupying residences owned by their spouses and previously <br/>
<a id="pl.109.10"></a><var>109.10</var>occupied with the other spouse, either of whom fail to include the other spouse's name <br/>
<a id="pl.109.11"></a><var>109.11</var>and Social Security number on the homestead application or provide the affidavits or <br/>
<a id="pl.109.12"></a><var>109.12</var>other proof requested, will be deemed to have elected to receive only partial homestead <br/>
<a id="pl.109.13"></a><var>109.13</var>treatment of their residence. The remainder of the residence will be classified as <br/>
<a id="pl.109.14"></a><var>109.14</var>nonhomestead residential. When an owner or spouse's name and Social Security number <br/>
<a id="pl.109.15"></a><var>109.15</var>appear on homestead applications for two separate residences and only one application is <br/>
<a id="pl.109.16"></a><var>109.16</var>signed, the owner or spouse will be deemed to have elected to homestead the residence for <br/>
<a id="pl.109.17"></a><var>109.17</var>which the application was signed.<br/>
<a id="pl.109.18"></a><var>109.18</var>    The Social Security numbers, state or federal tax returns or tax return information, <br/>
<a id="pl.109.19"></a><var>109.19</var>including the federal income tax schedule F required by this section, or affidavits or other <br/>
<a id="pl.109.20"></a><var>109.20</var>proofs of the property owners and spouses submitted under this or another section to <br/>
<a id="pl.109.21"></a><var>109.21</var>support a claim for a property tax homestead classification are private data on individuals <br/>
<a id="pl.109.22"></a><var>109.22</var>as defined by section 
         <statute_ref>13.02, subdivision 12</statute_ref>, but, notwithstanding that section, the private <br/>
<a id="pl.109.23"></a><var>109.23</var>data may be disclosed to the commissioner of revenue, or, for purposes of proceeding <br/>
<a id="pl.109.24"></a><var>109.24</var>under the Revenue Recapture Act to recover personal property taxes owing, to the county <br/>
<a id="pl.109.25"></a><var>109.25</var>treasurer.<br/>
<a id="pl.109.26"></a><var>109.26</var>    (d) If residential real estate is occupied and used for purposes of a homestead by a <br/>
<a id="pl.109.27"></a><var>109.27</var>relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in <br/>
<a id="pl.109.28"></a><var>109.28</var>order for the property to receive homestead status, a homestead application must be filed <br/>
<a id="pl.109.29"></a><var>109.29</var>with the assessor. The Social Security number of each relative and spouse of a relative <br/>
<a id="pl.109.30"></a><var>109.30</var>occupying the property shall be required on the homestead application filed under this <br/>
<a id="pl.109.31"></a><var>109.31</var>subdivision. If a different relative of the owner subsequently occupies the property, the <br/>
<a id="pl.109.32"></a><var>109.32</var>owner of the property must notify the assessor within 30 days of the change in occupancy. <br/>
<a id="pl.109.33"></a><var>109.33</var>The Social Security number of a relative or relative's spouse occupying the property <br/>
<a id="pl.109.34"></a><var>109.34</var>is private data on individuals as defined by section 
         <statute_ref>13.02, subdivision 12</statute_ref>, but may be <br/>
<a id="pl.109.35"></a><var>109.35</var>disclosed to the commissioner of revenue, or, for the purposes of proceeding under the <br/>
<a id="pl.109.36"></a><var>109.36</var>Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.<br/>
<a id="pl.110.1"></a><var>110.1</var>    (e) The homestead application shall also notify the property owners that the <br/>
<a id="pl.110.2"></a><var>110.2</var>application filed under this section will not be mailed annually and that if the property <br/>
<a id="pl.110.3"></a><var>110.3</var>is granted homestead status for any assessment year, that same property shall remain <br/>
<a id="pl.110.4"></a><var>110.4</var>classified as homestead until the property is sold or transferred to another person, or <br/>
<a id="pl.110.5"></a><var>110.5</var>the owners, the spouse of the owner, or the relatives no longer use the property as their <br/>
<a id="pl.110.6"></a><var>110.6</var>homestead. Upon the sale or transfer of the homestead property, a certificate of value must <br/>
<a id="pl.110.7"></a><var>110.7</var>be timely filed with the county auditor as provided under section 
         <statute_ref>272.115</statute_ref>. Failure to <br/>
<a id="pl.110.8"></a><var>110.8</var>notify the assessor within 30 days that the property has been sold, transferred, or that the <br/>
<a id="pl.110.9"></a><var>110.9</var>owner, the spouse of the owner, or the relative is no longer occupying the property as a <br/>
<a id="pl.110.10"></a><var>110.10</var>homestead, shall result in the penalty provided under this subdivision and the property <br/>
<a id="pl.110.11"></a><var>110.11</var>will lose its current homestead status.<br/>
<a id="pl.110.12"></a><var>110.12</var>    (f) If the homestead application is not returned within 30 days, the county will send a <br/>
<a id="pl.110.13"></a><var>110.13</var>second application to the present owners of record. The notice of proposed property taxes <br/>
<a id="pl.110.14"></a><var>110.14</var>prepared under section 
         <statute_ref>275.065, subdivision 3</statute_ref>, shall reflect the property's classification. If <br/>
<a id="pl.110.15"></a><var>110.15</var>a homestead application has not been filed with the county by December 15, the assessor <br/>
<a id="pl.110.16"></a><var>110.16</var>shall classify the property as nonhomestead for the current assessment year for taxes <br/>
<a id="pl.110.17"></a><var>110.17</var>payable in the following year, provided that the owner may be entitled to receive the <br/>
<a id="pl.110.18"></a><var>110.18</var>homestead classification by proper application under section 
         <statute_ref>375.192</statute_ref>.<br/>
<a id="pl.110.19"></a><var>110.19</var>    (g) At the request of the commissioner, each county must give the commissioner a <br/>
<a id="pl.110.20"></a><var>110.20</var>list that includes the name and Social Security number of each occupant of homestead <br/>
<a id="pl.110.21"></a><var>110.21</var>property who is the property owner, property owner's spouse, qualifying relative of a <br/>
<a id="pl.110.22"></a><var>110.22</var>property owner, or a spouse of a qualifying relative. The commissioner shall use the <br/>
<a id="pl.110.23"></a><var>110.23</var>information provided on the lists as appropriate under the law, including for the detection <br/>
<a id="pl.110.24"></a><var>110.24</var>of improper claims by owners, or relatives of owners, under chapter 290A.<br/>
<a id="pl.110.25"></a><var>110.25</var>    (h) If the commissioner finds that a property owner may be claiming a fraudulent <br/>
<a id="pl.110.26"></a><var>110.26</var>homestead, the commissioner shall notify the appropriate counties. Within 90 days of <br/>
<a id="pl.110.27"></a><var>110.27</var>the notification, the county assessor shall investigate to determine if the homestead <br/>
<a id="pl.110.28"></a><var>110.28</var>classification was properly claimed. If the property owner does not qualify, the county <br/>
<a id="pl.110.29"></a><var>110.29</var>assessor shall notify the county auditor who will determine the amount of homestead <br/>
<a id="pl.110.30"></a><var>110.30</var>benefits that had been improperly allowed. For the purpose of this section, "homestead <br/>
<a id="pl.110.31"></a><var>110.31</var>benefits" means the tax reduction resulting from the classification as a homestead and the <br/>
<a id="pl.110.32"></a><var>110.32</var>homestead market value exclusion under section 
         <statute_ref>273.13</statute_ref>, the taconite homestead credit <br/>
<a id="pl.110.33"></a><var>110.33</var>under section 
         <statute_ref>273.135</statute_ref>, the residential homestead and agricultural homestead credits credit <br/>
<a id="pl.110.34"></a><var>110.34</var>under section 
         <statute_ref>273.1384</statute_ref>, and the supplemental homestead credit under section 
         <statute_ref>273.1391</statute_ref>.<br/>
<a id="pl.110.35"></a><var>110.35</var>    The county auditor shall send a notice to the person who owned the affected property <br/>
<a id="pl.110.36"></a><var>110.36</var>at the time the homestead application related to the improper homestead was filed, <br/>
<a id="pl.111.1"></a><var>111.1</var>demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent <br/>
<a id="pl.111.2"></a><var>111.2</var>of the homestead benefits. The person notified may appeal the county's determination <br/>
<a id="pl.111.3"></a><var>111.3</var>by serving copies of a petition for review with county officials as provided in section <br/>
<statute_ref><a id="pl.111.4"></a><var>111.4</var>278.01
         </statute_ref> and filing proof of service as provided in section 
         <statute_ref>278.01</statute_ref> with the Minnesota Tax <br/>
<a id="pl.111.5"></a><var>111.5</var>Court within 60 days of the date of the notice from the county. Procedurally, the appeal <br/>
<a id="pl.111.6"></a><var>111.6</var>is governed by the provisions in chapter 271 which apply to the appeal of a property tax <br/>
<a id="pl.111.7"></a><var>111.7</var>assessment or levy, but without requiring any prepayment of the amount in controversy. If <br/>
<a id="pl.111.8"></a><var>111.8</var>the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal <br/>
<a id="pl.111.9"></a><var>111.9</var>has been filed, the county auditor shall certify the amount of taxes and penalty to the county <br/>
<a id="pl.111.10"></a><var>111.10</var>treasurer. The county treasurer will add interest to the unpaid homestead benefits and <br/>
<a id="pl.111.11"></a><var>111.11</var>penalty amounts at the rate provided in section 
         <statute_ref>279.03</statute_ref> for real property taxes becoming <br/>
<a id="pl.111.12"></a><var>111.12</var>delinquent in the calendar year during which the amount remains unpaid. Interest may be <br/>
<a id="pl.111.13"></a><var>111.13</var>assessed for the period beginning 60 days after demand for payment was made.<br/>
<a id="pl.111.14"></a><var>111.14</var>    If the person notified is the current owner of the property, the treasurer may add the <br/>
<a id="pl.111.15"></a><var>111.15</var>total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes <br/>
<a id="pl.111.16"></a><var>111.16</var>otherwise payable on the property by including the amounts on the property tax statements <br/>
<a id="pl.111.17"></a><var>111.17</var>under section 
         <statute_ref>276.04, subdivision 3</statute_ref>. The amounts added under this paragraph to the ad <br/>
<a id="pl.111.18"></a><var>111.18</var>valorem taxes shall include interest accrued through December 31 of the year preceding <br/>
<a id="pl.111.19"></a><var>111.19</var>the taxes payable year for which the amounts are first added. These amounts, when added <br/>
<a id="pl.111.20"></a><var>111.20</var>to the property tax statement, become subject to all the laws for the enforcement of real or <br/>
<a id="pl.111.21"></a><var>111.21</var>personal property taxes for that year, and for any subsequent year.<br/>
<a id="pl.111.22"></a><var>111.22</var>    If the person notified is not the current owner of the property, the treasurer may <br/>
<a id="pl.111.23"></a><var>111.23</var>collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of <br/>
<a id="pl.111.24"></a><var>111.24</var>the powers granted in sections 
         <statute_ref>277.20</statute_ref> and 
         <statute_ref>277.21</statute_ref> without exclusion, to enforce payment <br/>
<a id="pl.111.25"></a><var>111.25</var>of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent <br/>
<a id="pl.111.26"></a><var>111.26</var>tax obligations of the person who owned the property at the time the application related <br/>
<a id="pl.111.27"></a><var>111.27</var>to the improperly allowed homestead was filed. The treasurer may relieve a prior owner <br/>
<a id="pl.111.28"></a><var>111.28</var>of personal liability for the homestead benefits, penalty, interest, and costs, and instead <br/>
<a id="pl.111.29"></a><var>111.29</var>extend those amounts on the tax lists against the property as provided in this paragraph <br/>
<a id="pl.111.30"></a><var>111.30</var>to the extent that the current owner agrees in writing. On all demands, billings, property <br/>
<a id="pl.111.31"></a><var>111.31</var>tax statements, and related correspondence, the county must list and state separately the <br/>
<a id="pl.111.32"></a><var>111.32</var>amounts of homestead benefits, penalty, interest and costs being demanded, billed or <br/>
<a id="pl.111.33"></a><var>111.33</var>assessed.<br/>
<a id="pl.111.34"></a><var>111.34</var>    (i) Any amount of homestead benefits recovered by the county from the property <br/>
<a id="pl.111.35"></a><var>111.35</var>owner shall be distributed to the county, city or town, and school district where the <br/>
<a id="pl.111.36"></a><var>111.36</var>property is located in the same proportion that each taxing district's levy was to the total <br/>
<a id="pl.112.1"></a><var>112.1</var>of the three taxing districts' levy for the current year. Any amount recovered attributable <br/>
<a id="pl.112.2"></a><var>112.2</var>to taconite homestead credit shall be transmitted to the St. Louis County auditor to be <br/>
<a id="pl.112.3"></a><var>112.3</var>deposited in the taconite property tax relief account. Any amount recovered that is <br/>
<a id="pl.112.4"></a><var>112.4</var>attributable to supplemental homestead credit is to be transmitted to the commissioner of <br/>
<a id="pl.112.5"></a><var>112.5</var>revenue for deposit in the general fund of the state treasury. The total amount of penalty <br/>
<a id="pl.112.6"></a><var>112.6</var>collected must be deposited in the county general fund.<br/>
<a id="pl.112.7"></a><var>112.7</var>    (j) If a property owner has applied for more than one homestead and the county <br/>
<a id="pl.112.8"></a><var>112.8</var>assessors cannot determine which property should be classified as homestead, the county <br/>
<a id="pl.112.9"></a><var>112.9</var>assessors will refer the information to the commissioner. The commissioner shall make <br/>
<a id="pl.112.10"></a><var>112.10</var>the determination and notify the counties within 60 days.<br/>
<a id="pl.112.11"></a><var>112.11</var>    (k) In addition to lists of homestead properties, the commissioner may ask the <br/>
<a id="pl.112.12"></a><var>112.12</var>counties to furnish lists of all properties and the record owners. The Social Security <br/>
<a id="pl.112.13"></a><var>112.13</var>numbers and federal identification numbers that are maintained by a county or city <br/>
<a id="pl.112.14"></a><var>112.14</var>assessor for property tax administration purposes, and that may appear on the lists retain <br/>
<a id="pl.112.15"></a><var>112.15</var>their classification as private or nonpublic data; but may be viewed, accessed, and used by <br/>
<a id="pl.112.16"></a><var>112.16</var>the county auditor or treasurer of the same county for the limited purpose of assisting the <br/>
<a id="pl.112.17"></a><var>112.17</var>commissioner in the preparation of microdata samples under section 
         <statute_ref>270C.12</statute_ref>.<br/>
<a id="pl.112.18"></a><var>112.18</var>    (l) On or before April 30 each year beginning in 2007, each county must provide the <br/>
<a id="pl.112.19"></a><var>112.19</var>commissioner with the following data for each parcel of homestead property by electronic <br/>
<a id="pl.112.20"></a><var>112.20</var>means as defined in section 
         <statute_ref>289A.02, subdivision 8</statute_ref>:<br/>
<a id="pl.112.21"></a><var>112.21</var>    (i) the property identification number assigned to the parcel for purposes of taxes <br/>
<a id="pl.112.22"></a><var>112.22</var>payable in the current year;<br/>
<a id="pl.112.23"></a><var>112.23</var>    (ii) the name and Social Security number of each occupant of homestead property <br/>
<a id="pl.112.24"></a><var>112.24</var>who is the property owner, property owner's spouse, qualifying relative of a property <br/>
<a id="pl.112.25"></a><var>112.25</var>owner, or spouse of a qualifying relative;<br/>
<a id="pl.112.26"></a><var>112.26</var>    (iii) the classification of the property under section 
         <statute_ref>273.13</statute_ref> for taxes payable in the <br/>
<a id="pl.112.27"></a><var>112.27</var>current year and in the prior year;<br/>
<a id="pl.112.28"></a><var>112.28</var>    (iv) an indication of whether the property was classified as a homestead for taxes <br/>
<a id="pl.112.29"></a><var>112.29</var>payable in the current year because of occupancy by a relative of the owner or by a <br/>
<a id="pl.112.30"></a><var>112.30</var>spouse of a relative;<br/>
<a id="pl.112.31"></a><var>112.31</var>    (v) the property taxes payable as defined in section 
         <statute_ref>290A.03, subdivision 13</statute_ref>, for the <br/>
<a id="pl.112.32"></a><var>112.32</var>current year and the prior year;<br/>
<a id="pl.112.33"></a><var>112.33</var>    (vi) the market value of improvements to the property first assessed for tax purposes <br/>
<a id="pl.112.34"></a><var>112.34</var>for taxes payable in the current year;<br/>
<a id="pl.112.35"></a><var>112.35</var>    (vii) the assessor's estimated market value assigned to the property for taxes payable <br/>
<a id="pl.112.36"></a><var>112.36</var>in the current year and the prior year;<br/>
<a id="pl.113.1"></a><var>113.1</var>    (viii) the taxable market value assigned to the property for taxes payable in the <br/>
<a id="pl.113.2"></a><var>113.2</var>current year and the prior year;<br/>
<a id="pl.113.3"></a><var>113.3</var>    (ix) whether there are delinquent property taxes owing on the homestead;<br/>
<a id="pl.113.4"></a><var>113.4</var>    (x) the unique taxing district in which the property is located; and<br/>
<a id="pl.113.5"></a><var>113.5</var>    (xi) such other information as the commissioner decides is necessary.<br/>
<a id="pl.113.6"></a><var>113.6</var>    The commissioner shall use the information provided on the lists as appropriate <br/>
<a id="pl.113.7"></a><var>113.7</var>under the law, including for the detection of improper claims by owners, or relatives <br/>
<a id="pl.113.8"></a><var>113.8</var>of owners, under chapter 290A.<br/>
<a id="pl.113.9"></a><var>113.9</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br/>
<a id="pl.113.10"></a><var>113.10</var>thereafter.<br/>
<br/>
<a id="bill.7.29.0"></a><a id="pl.113.11"></a><var>113.11</var>    Sec. 29. Minnesota Statutes 2010, section 273.13, subdivision 21b, is amended to read:<br/>
<a id="pl.113.12"></a><var>113.12</var>    Subd. 21b. <b>Net </b><b>tax capacity.</b> (a) Gross tax capacity means the product of the <br/>
<a id="pl.113.13"></a><var>113.13</var>appropriate gross class rates in this section and market values.<br/>
<a id="pl.113.14"></a><var>113.14</var>(b) Net tax capacity means the product of the appropriate net class rates in this <br/>
<a id="pl.113.15"></a><var>113.15</var>section and taxable market values.<br/>
<a id="pl.113.16"></a><var>113.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.30.0"></a><a id="pl.113.17"></a><var>113.17</var>    Sec. 30. Minnesota Statutes 2010, section 273.1398, subdivision 3, is amended to read:<br/>
<a id="pl.113.18"></a><var>113.18</var>    Subd. 3. <b>Disparity reduction aid.</b>  The amount of disparity aid certified for each <br/>
<a id="pl.113.19"></a><var>113.19</var>taxing district within each unique taxing jurisdiction for taxes payable in the prior year <br/>
<a id="pl.113.20"></a><var>113.20</var>shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class rates for <br/>
<a id="pl.113.21"></a><var>113.21</var>taxes payable in the year for which aid is being computed, to (2) its tax capacity using <br/>
<a id="pl.113.22"></a><var>113.22</var>the class rates for taxes payable in the year prior to that for which aid is being computed, <br/>
<a id="pl.113.23"></a><var>113.23</var>both based upon taxable market values for taxes payable in the year prior to that for which <br/>
<a id="pl.113.24"></a><var>113.24</var>aid is being computed. If the commissioner determines that insufficient information is <br/>
<a id="pl.113.25"></a><var>113.25</var>available to reasonably and timely calculate the numerator in this ratio for the first taxes <br/>
<a id="pl.113.26"></a><var>113.26</var>payable year that a class rate change or new class rate is effective, the commissioner shall <br/>
<a id="pl.113.27"></a><var>113.27</var>omit the effects of that class rate change or new class rate when calculating this ratio for <br/>
<a id="pl.113.28"></a><var>113.28</var>aid payable in that taxes payable year. For aid payable in the year following a year for <br/>
<a id="pl.113.29"></a><var>113.29</var>which such omission was made, the commissioner shall use in the denominator for the <br/>
<a id="pl.113.30"></a><var>113.30</var>class that was changed or created, the tax capacity for taxes payable two years prior to that <br/>
<a id="pl.113.31"></a><var>113.31</var>in which the aid is payable, based on taxable market values for taxes payable in the year <br/>
<a id="pl.113.32"></a><var>113.32</var>prior to that for which aid is being computed.<br/>
<br/>
<a id="bill.7.31.0"></a><a id="pl.114.1"></a><var>114.1</var>    Sec. 31. Minnesota Statutes 2010, section 273.1398, subdivision 4, is amended to read:<br/>
<a id="pl.114.2"></a><var>114.2</var>    Subd. 4. <b>Disparity reduction credit.</b> (a) Beginning with taxes payable in 1989, <br/>
<a id="pl.114.3"></a><var>114.3</var>class 4a, class 3a, and class 3b property qualifies for a disparity reduction credit if: (1) <br/>
<a id="pl.114.4"></a><var>114.4</var>the property is located in a border city that has an enterprise zone designated pursuant <br/>
<a id="pl.114.5"></a><var>114.5</var>to section 
         <statute_ref>469.168, subdivision 4</statute_ref>; (2) the property is located in a city with a population <br/>
<a id="pl.114.6"></a><var>114.6</var>greater than 2,500 and less than 35,000 according to the 1980 decennial census; (3) the <br/>
<a id="pl.114.7"></a><var>114.7</var>city is adjacent to a city in another state or immediately adjacent to a city adjacent to a city <br/>
<a id="pl.114.8"></a><var>114.8</var>in another state; and (4) the adjacent city in the other state has a population of greater than <br/>
<a id="pl.114.9"></a><var>114.9</var>5,000 and less than 75,000 according to the 1980 decennial census.<br/>
<a id="pl.114.10"></a><var>114.10</var>    (b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a <br/>
<a id="pl.114.11"></a><var>114.11</var>property to 2.3 percent of the property's taxable market value and (ii) the tax on class 3a <br/>
<a id="pl.114.12"></a><var>114.12</var>and class 3b property to 2.3 percent of taxable market value.<br/>
<a id="pl.114.13"></a><var>114.13</var>    (c) The county auditor shall annually certify the costs of the credits to the <br/>
<a id="pl.114.14"></a><var>114.14</var>Department of Revenue. The department shall reimburse local governments for the <br/>
<a id="pl.114.15"></a><var>114.15</var>property taxes forgone as the result of the credits in proportion to their total levies.<br/>
<br/>
<a id="bill.7.32.0"></a><a id="pl.114.16"></a><var>114.16</var>    Sec. 32. Minnesota Statutes 2010, section 275.011, subdivision 1, is amended to read:<br/>
<a id="pl.114.17"></a><var>114.17</var>    Subdivision 1. <b>Determination of levy limit.</b> The property tax levied for any <br/>
<a id="pl.114.18"></a><var>114.18</var>purpose under a special law that is not codified in Minnesota Statutes or a city charter <br/>
<a id="pl.114.19"></a><var>114.19</var>provision and that is subject to a mill rate limitation imposed by the special law or city <br/>
<a id="pl.114.20"></a><var>114.20</var>charter provision, excluding levies subject to mill rate limitations that use adjusted <br/>
<a id="pl.114.21"></a><var>114.21</var>assessed values determined by the commissioner of revenue under section 
         <statute_ref>124.2131</statute_ref>, must <br/>
<a id="pl.114.22"></a><var>114.22</var>not exceed the following amount for the years specified:<br/>
<a id="pl.114.23"></a><var>114.23</var>(a) for taxes payable in 1988, the product of the applicable mill rate limitation <br/>
<a id="pl.114.24"></a><var>114.24</var>imposed by special law or city charter provision multiplied by the total assessed valuation <br/>
<a id="pl.114.25"></a><var>114.25</var>of all taxable property subject to the tax as adjusted by the provisions of Minnesota <br/>
<a id="pl.114.26"></a><var>114.26</var>Statutes 1986, sections 
         <statute_ref>272.64</statute_ref>; 
         <statute_ref>273.13, subdivision 7a</statute_ref>; and 
         <statute_ref>275.49</statute_ref>;<br/>
<a id="pl.114.27"></a><var>114.27</var>(b) for taxes payable in 1989, the product of (1) the property tax levy limitation for <br/>
<a id="pl.114.28"></a><var>114.28</var>the taxes payable year 1988 determined under clause (a) multiplied by (2) an index for <br/>
<a id="pl.114.29"></a><var>114.29</var>market valuation changes equal to the assessment year 1988 total market valuation of all <br/>
<a id="pl.114.30"></a><var>114.30</var>taxable property subject to the tax divided by the assessment year 1987 total market <br/>
<a id="pl.114.31"></a><var>114.31</var>valuation of all taxable property subject to the tax; and<br/>
<a id="pl.114.32"></a><var>114.32</var>(c) for taxes payable in 1990 and subsequent years, the product of (1) the property <br/>
<a id="pl.114.33"></a><var>114.33</var>tax levy limitation for the previous year determined pursuant to this subdivision multiplied <br/>
<a id="pl.114.34"></a><var>114.34</var>by (2) an index for market valuation changes equal to the total market valuation of all <br/>
<a id="pl.115.1"></a><var>115.1</var>taxable property subject to the tax for the current assessment year divided by the total <br/>
<a id="pl.115.2"></a><var>115.2</var>market valuation of all taxable property subject to the tax for the previous assessment year.<br/>
<a id="pl.115.3"></a><var>115.3</var>For the purpose of determining the property tax levy limitation for the taxes payable <br/>
<a id="pl.115.4"></a><var>115.4</var>year 1988 2013 and subsequent years under this subdivision, "total market valuation" <br/>
<a id="pl.115.5"></a><var>115.5</var>means the total estimated market valuation value of all taxable property subject to the <br/>
<a id="pl.115.6"></a><var>115.6</var>tax without valuation adjustments for fiscal disparities (chapters 276A and 473F), tax <br/>
<a id="pl.115.7"></a><var>115.7</var>increment financing (sections 
<statute_ref>469.174</statute_ref> to 469.179), or powerline credit (section 273.425) <br/>
<a id="pl.115.8"></a><var>115.8</var>as provided under section 273.032.<br/>
<br/>
<a id="bill.7.33.0"></a><a id="pl.115.9"></a><var>115.9</var>    Sec. 33. Minnesota Statutes 2010, section 275.077, subdivision 2, is amended to read:<br/>
<a id="pl.115.10"></a><var>115.10</var>    Subd. 2. <b>Correction of levy amount.</b> The difference between the correct levy and <br/>
<a id="pl.115.11"></a><var>115.11</var>the erroneous levy shall be added to the township levy for the subsequent levy year; <br/>
<a id="pl.115.12"></a><var>115.12</var>provided that if the amount of the difference exceeds 0.12089 percent of taxable estimated <br/>
<a id="pl.115.13"></a><var>115.13</var>market value, the excess shall be added to the township levy for the second and later <br/>
<a id="pl.115.14"></a><var>115.14</var>subsequent levy years, not to exceed an additional levy of 0.12089 percent of taxable <br/>
<a id="pl.115.15"></a><var>115.15</var>estimated market value in any year, until the full amount of the difference has been levied. <br/>
<a id="pl.115.16"></a><var>115.16</var>The funds collected from the corrected levies shall be used to reimburse the county for the <br/>
<a id="pl.115.17"></a><var>115.17</var>payment required by subdivision 1.<br/>
<br/>
<a id="bill.7.34.0"></a><a id="pl.115.18"></a><var>115.18</var>    Sec. 34. Minnesota Statutes 2010, section 275.71, subdivision 4, is amended to read:<br/>
<a id="pl.115.19"></a><var>115.19</var>    Subd. 4. <b>Adjusted levy limit base.</b>  For taxes levied in 2008 through 2010, the <br/>
<a id="pl.115.20"></a><var>115.20</var>adjusted levy limit base is equal to the levy limit base computed under subdivision 2 <br/>
<a id="pl.115.21"></a><var>115.21</var>or section 
         <statute_ref>275.72</statute_ref>, multiplied by:<br/>
<a id="pl.115.22"></a><var>115.22</var>    (1) one plus the percentage growth in the implicit price deflator, but the percentage <br/>
<a id="pl.115.23"></a><var>115.23</var>shall not be less than zero or exceed 3.9 percent;<br/>
<a id="pl.115.24"></a><var>115.24</var>    (2) one plus a percentage equal to 50 percent of the percentage increase in the number <br/>
<a id="pl.115.25"></a><var>115.25</var>of households, if any, for the most recent 12-month period for which data is available; and<br/>
<a id="pl.115.26"></a><var>115.26</var>    (3) one plus a percentage equal to 50 percent of the percentage increase in the <br/>
<a id="pl.115.27"></a><var>115.27</var>taxable estimated market value of the jurisdiction due to new construction of class 3 <br/>
<a id="pl.115.28"></a><var>115.28</var>property, as defined in section 
         <statute_ref>273.13, subdivision 4</statute_ref>, except for state-assessed utility and <br/>
<a id="pl.115.29"></a><var>115.29</var>railroad property, for the most recent year for which data is available.<br/>
<br/>
<a id="bill.7.35.0"></a><a id="pl.115.30"></a><var>115.30</var>    Sec. 35. Minnesota Statutes 2011 Supplement, section 276.04, subdivision 2, is <br/>
<a id="pl.115.31"></a><var>115.31</var>amended to read:<br/>
<a id="pl.115.32"></a><var>115.32</var>    Subd. 2. <b>Contents of tax statements.</b> (a) The treasurer shall provide for the <br/>
<a id="pl.115.33"></a><var>115.33</var>printing of the tax statements. The commissioner of revenue shall prescribe the form of <br/>
<a id="pl.116.1"></a><var>116.1</var>the property tax statement and its contents. The tax statement must not state or imply <br/>
<a id="pl.116.2"></a><var>116.2</var>that property tax credits are paid by the state of Minnesota. The statement must contain <br/>
<a id="pl.116.3"></a><var>116.3</var>a tabulated statement of the dollar amount due to each taxing authority and the amount <br/>
<a id="pl.116.4"></a><var>116.4</var>of the state tax from the parcel of real property for which a particular tax statement is <br/>
<a id="pl.116.5"></a><var>116.5</var>prepared. The dollar amounts attributable to the county, the state tax, the voter approved <br/>
<a id="pl.116.6"></a><var>116.6</var>school tax, the other local school tax, the township or municipality, and the total of <br/>
<a id="pl.116.7"></a><var>116.7</var>the metropolitan special taxing districts as defined in section 
         <statute_ref>275.065, subdivision 3</statute_ref>, <br/>
<a id="pl.116.8"></a><var>116.8</var>paragraph (i), must be separately stated. The amounts due all other special taxing districts, <br/>
<a id="pl.116.9"></a><var>116.9</var>if any, may be aggregated except that any levies made by the regional rail authorities in the <br/>
<a id="pl.116.10"></a><var>116.10</var>county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter <br/>
<a id="pl.116.11"></a><var>116.11</var>398A shall be listed on a separate line directly under the appropriate county's levy. If the <br/>
<a id="pl.116.12"></a><var>116.12</var>county levy under this paragraph includes an amount for a lake improvement district as <br/>
<a id="pl.116.13"></a><var>116.13</var>defined under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that purpose <br/>
<a id="pl.116.14"></a><var>116.14</var>must be separately stated from the remaining county levy amount. In the case of Ramsey <br/>
<a id="pl.116.15"></a><var>116.15</var>County, if the county levy under this paragraph includes an amount for public library <br/>
<a id="pl.116.16"></a><var>116.16</var>service under section 
         <statute_ref>134.07</statute_ref>, the amount attributable for that purpose may be separated <br/>
<a id="pl.116.17"></a><var>116.17</var>from the remaining county levy amount. The amount of the tax on homesteads qualifying <br/>
<a id="pl.116.18"></a><var>116.18</var>under the senior citizens' property tax deferral program under chapter 290B is the total <br/>
<a id="pl.116.19"></a><var>116.19</var>amount of property tax before subtraction of the deferred property tax amount. The <br/>
<a id="pl.116.20"></a><var>116.20</var>amount of the tax on contamination value imposed under sections 
         <statute_ref>270.91</statute_ref> to 
         <statute_ref>270.98</statute_ref>, if any, <br/>
<a id="pl.116.21"></a><var>116.21</var>must also be separately stated. The dollar amounts, including the dollar amount of any <br/>
<a id="pl.116.22"></a><var>116.22</var>special assessments, may be rounded to the nearest even whole dollar. For purposes of this <br/>
<a id="pl.116.23"></a><var>116.23</var>section whole odd-numbered dollars may be adjusted to the next higher even-numbered <br/>
<a id="pl.116.24"></a><var>116.24</var>dollar. The amount of market value excluded under section 
         <statute_ref>273.11, subdivision 16</statute_ref>, if any, <br/>
<a id="pl.116.25"></a><var>116.25</var>must also be listed on the tax statement.<br/>
<a id="pl.116.26"></a><var>116.26</var>    (b) The property tax statements for manufactured homes and sectional structures <br/>
<a id="pl.116.27"></a><var>116.27</var>taxed as personal property shall contain the same information that is required on the <br/>
<a id="pl.116.28"></a><var>116.28</var>tax statements for real property.<br/>
<a id="pl.116.29"></a><var>116.29</var>    (c) Real and personal property tax statements must contain the following information <br/>
<a id="pl.116.30"></a><var>116.30</var>in the order given in this paragraph. The information must contain the current year tax <br/>
<a id="pl.116.31"></a><var>116.31</var>information in the right column with the corresponding information for the previous year <br/>
<a id="pl.116.32"></a><var>116.32</var>in a column on the left:<br/>
<a id="pl.116.33"></a><var>116.33</var>    (1) the property's estimated market value under section 
         <statute_ref>273.11, subdivision 1</statute_ref>;<br/>
<a id="pl.116.34"></a><var>116.34</var>(2) the property's homestead market value exclusion under section 
         <statute_ref>273.13</statute_ref>, <br/>
<a id="pl.116.35"></a><var>116.35</var>subdivision 35;<br/>
<a id="pl.117.1"></a><var>117.1</var>    (3) the property's taxable market value after reductions under sections 
<statute_ref>273.11</statute_ref>, <br/>
<a id="pl.117.2"></a><var>117.2</var>subdivisions 1a and 16, and 
<statute_ref>273.13, subdivision 35</statute_ref> section 272.03, subdivision 15;<br/>
<a id="pl.117.3"></a><var>117.3</var>    (4) the property's gross tax, before credits;<br/>
<a id="pl.117.4"></a><var>117.4</var>    (5) for homestead agricultural properties, the credit under section 
         <statute_ref>273.1384</statute_ref>;<br/>
<a id="pl.117.5"></a><var>117.5</var>    (6) any credits received under sections 
         <statute_ref>273.119</statute_ref>; 
         <statute_ref>273.1234</statute_ref> or 
         <statute_ref>273.1235</statute_ref>; 
         <statute_ref>273.135</statute_ref>; <br/>
<statute_ref><a id="pl.117.6"></a><var>117.6</var>273.1391
         </statute_ref>; 
         <statute_ref>273.1398, subdivision 4</statute_ref>; 
         <statute_ref>469.171</statute_ref>; and 
         <statute_ref>473H.10</statute_ref>, except that the amount of <br/>
<a id="pl.117.7"></a><var>117.7</var>credit received under section 
         <statute_ref>273.135</statute_ref> must be separately stated and identified as "taconite <br/>
<a id="pl.117.8"></a><var>117.8</var>tax relief"; and<br/>
<a id="pl.117.9"></a><var>117.9</var>    (7) the net tax payable in the manner required in paragraph (a).<br/>
<a id="pl.117.10"></a><var>117.10</var>    (d) If the county uses envelopes for mailing property tax statements and if the county <br/>
<a id="pl.117.11"></a><var>117.11</var>agrees, a taxing district may include a notice with the property tax statement notifying <br/>
<a id="pl.117.12"></a><var>117.12</var>taxpayers when the taxing district will begin its budget deliberations for the current <br/>
<a id="pl.117.13"></a><var>117.13</var>year, and encouraging taxpayers to attend the hearings. If the county allows notices to <br/>
<a id="pl.117.14"></a><var>117.14</var>be included in the envelope containing the property tax statement, and if more than <br/>
<a id="pl.117.15"></a><var>117.15</var>one taxing district relative to a given property decides to include a notice with the tax <br/>
<a id="pl.117.16"></a><var>117.16</var>statement, the county treasurer or auditor must coordinate the process and may combine <br/>
<a id="pl.117.17"></a><var>117.17</var>the information on a single announcement.<br/>
<br/>
<a id="bill.7.36.0"></a><a id="pl.117.18"></a><var>117.18</var>    Sec. 36. Minnesota Statutes 2010, section 276A.01, subdivision 10, is amended to read:<br/>
<a id="pl.117.19"></a><var>117.19</var>    Subd. 10. <b>Adjusted </b><b>market value.</b> "Adjusted market value" of real and personal <br/>
<a id="pl.117.20"></a><var>117.20</var>property within a municipality means the assessor's estimated taxable market value, <br/>
<a id="pl.117.21"></a><var>117.21</var>as defined in section 272.03, of all real and personal property, including the value of <br/>
<a id="pl.117.22"></a><var>117.22</var>manufactured housing, within the municipality. For purposes of sections 
<statute_ref>276A.01</statute_ref> to <br/>
<a id="pl.117.23"></a><var>117.23</var><statute_ref>276A.09</statute_ref>, the commissioner of revenue shall annually make determinations and reports <br/>
<a id="pl.117.24"></a><var>117.24</var>with respect to each municipality which are comparable to those it makes for school <br/>
<a id="pl.117.25"></a><var>117.25</var>districts, adjusted for sales ratios in a manner similar to the adjustments made to city and <br/>
<a id="pl.117.26"></a><var>117.26</var>town net tax capacities under section 
         <statute_ref>127A.48, subdivisions 1 to 6</statute_ref>, in the same manner <br/>
<a id="pl.117.27"></a><var>117.27</var>and at the same times prescribed by the subdivision. The commissioner of revenue shall <br/>
<a id="pl.117.28"></a><var>117.28</var>annually determine, for each municipality, information comparable to that required by <br/>
<a id="pl.117.29"></a><var>117.29</var>section 
<statute_ref>475.53, subdivision 4</statute_ref>, for school districts, as soon as practicable after it becomes <br/>
<a id="pl.117.30"></a><var>117.30</var>available. The commissioner of revenue shall then compute the equalized market value of <br/>
<a id="pl.117.31"></a><var>117.31</var>property within each municipality.<br/>
<a id="pl.117.32"></a><var>117.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.37.0"></a><a id="pl.117.33"></a><var>117.33</var>    Sec. 37. Minnesota Statutes 2010, section 276A.01, subdivision 12, is amended to read:<br/>
<a id="pl.118.1"></a><var>118.1</var>    Subd. 12. <b>Fiscal capacity.</b> "Fiscal capacity" of a municipality means its valuation <br/>
<a id="pl.118.2"></a><var>118.2</var>adjusted market value, determined as of January 2 of any year, divided by its population, <br/>
<a id="pl.118.3"></a><var>118.3</var>determined as of a date in the same year.<br/>
<br/>
<a id="bill.7.38.0"></a><a id="pl.118.4"></a><var>118.4</var>    Sec. 38. Minnesota Statutes 2010, section 276A.01, subdivision 13, is amended to read:<br/>
<a id="pl.118.5"></a><var>118.5</var>    Subd. 13. <b>Average fiscal capacity.</b> "Average fiscal capacity" of municipalities <br/>
<a id="pl.118.6"></a><var>118.6</var>means the sum of the valuations adjusted market values of all municipalities, determined <br/>
<a id="pl.118.7"></a><var>118.7</var>as of January 2 of any year, divided by the sum of their populations, determined as of <br/>
<a id="pl.118.8"></a><var>118.8</var>a date in the same year.<br/>
<br/>
<a id="bill.7.39.0"></a><a id="pl.118.9"></a><var>118.9</var>    Sec. 39. Minnesota Statutes 2010, section 276A.01, subdivision 15, is amended to read:<br/>
<a id="pl.118.10"></a><var>118.10</var>    Subd. 15. <b>Net tax capacity.</b> "Net tax capacity" means the taxable market value of <br/>
<a id="pl.118.11"></a><var>118.11</var>real and personal property multiplied by its net tax capacity rates in section 
         <statute_ref>273.13</statute_ref>.<br/>
<br/>
<a id="bill.7.40.0"></a><a id="pl.118.12"></a><var>118.12</var>    Sec. 40. Minnesota Statutes 2010, section 287.08, is amended to read:<br/>
<a id="pl.118.13"></a><var>118.13</var><b>287.08 TAX, HOW PAYABLE; RECEIPTS.</b><br/>
<a id="pl.118.14"></a><var>118.14</var>    (a) The tax imposed by sections 
         <statute_ref>287.01</statute_ref> to 
         <statute_ref>287.12</statute_ref> must be paid to the treasurer of <br/>
<a id="pl.118.15"></a><var>118.15</var>any county in this state in which the real property or some part is located at or before <br/>
<a id="pl.118.16"></a><var>118.16</var>the time of filing the mortgage for record. The treasurer shall endorse receipt on the <br/>
<a id="pl.118.17"></a><var>118.17</var>mortgage and the receipt is conclusive proof that the tax has been paid in the amount <br/>
<a id="pl.118.18"></a><var>118.18</var>stated and authorizes any county recorder or registrar of titles to record the mortgage. Its <br/>
<a id="pl.118.19"></a><var>118.19</var>form, in substance, shall be "registration tax hereon of ..................... dollars paid." If the <br/>
<a id="pl.118.20"></a><var>118.20</var>mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from <br/>
<a id="pl.118.21"></a><var>118.21</var>registration tax." In either case the receipt must be signed by the treasurer. In case the <br/>
<a id="pl.118.22"></a><var>118.22</var>treasurer is unable to determine whether a claim of exemption should be allowed, the tax <br/>
<a id="pl.118.23"></a><var>118.23</var>must be paid as in the case of a taxable mortgage. For documents submitted electronically, <br/>
<a id="pl.118.24"></a><var>118.24</var>the endorsements and tax amount shall be affixed electronically and no signature by the <br/>
<a id="pl.118.25"></a><var>118.25</var>treasurer will be required. The actual payment method must be arranged in advance <br/>
<a id="pl.118.26"></a><var>118.26</var>between the submitter and the receiving county.<br/>
<a id="pl.118.27"></a><var>118.27</var>    (b) The county treasurer may refund in whole or in part any mortgage registry tax <br/>
<a id="pl.118.28"></a><var>118.28</var>overpayment if a written application by the taxpayer is submitted to the county treasurer <br/>
<a id="pl.118.29"></a><var>118.29</var>within 3-1/2 years from the date of the overpayment. If the county has not issued a denial <br/>
<a id="pl.118.30"></a><var>118.30</var>of the application, the taxpayer may bring an action in Tax Court in the county in which <br/>
<a id="pl.118.31"></a><var>118.31</var>the tax was paid at any time after the expiration of six months from the time that the <br/>
<a id="pl.118.32"></a><var>118.32</var>application was submitted. A denial of refund may be appealed within 60 days from <br/>
<a id="pl.118.33"></a><var>118.33</var>the date of the denial by bringing an action in Tax Court in the county in which the tax <br/>
<a id="pl.119.1"></a><var>119.1</var>was paid. The action is commenced by the serving of a petition for relief on the county <br/>
<a id="pl.119.2"></a><var>119.2</var>treasurer, and by filing a copy with the court. The county attorney shall defend the action. <br/>
<a id="pl.119.3"></a><var>119.3</var>The county treasurer shall notify the treasurer of each county that has or would receive a <br/>
<a id="pl.119.4"></a><var>119.4</var>portion of the tax as paid.<br/>
<a id="pl.119.5"></a><var>119.5</var>    (c) If the county treasurer determines a refund should be paid, or if a refund is <br/>
<a id="pl.119.6"></a><var>119.6</var>ordered by the court, the county treasurer of each county that actually received a portion <br/>
<a id="pl.119.7"></a><var>119.7</var>of the tax shall immediately pay a proportionate share of three percent of the refund <br/>
<a id="pl.119.8"></a><var>119.8</var>using any available county funds. The county treasurer of each county that received, or <br/>
<a id="pl.119.9"></a><var>119.9</var>would have received, a portion of the tax shall also pay their county's proportionate share <br/>
<a id="pl.119.10"></a><var>119.10</var>of the remaining 97 percent of the court-ordered refund on or before the 20th day of the <br/>
<a id="pl.119.11"></a><var>119.11</var>following month using solely the mortgage registry tax funds that would be paid to the <br/>
<a id="pl.119.12"></a><var>119.12</var>commissioner of revenue on that date under section 
         <statute_ref>287.12</statute_ref>. If the funds on hand under <br/>
<a id="pl.119.13"></a><var>119.13</var>this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the <br/>
<a id="pl.119.14"></a><var>119.14</var>county treasurer of the county in which the action was brought shall file a claim with the <br/>
<a id="pl.119.15"></a><var>119.15</var>commissioner of revenue under section 
         <statute_ref>16A.48</statute_ref> for the remaining portion of 97 percent of <br/>
<a id="pl.119.16"></a><var>119.16</var>the refund, and shall pay over the remaining portion upon receipt of a warrant from the <br/>
<a id="pl.119.17"></a><var>119.17</var>state issued pursuant to the claim.<br/>
<a id="pl.119.18"></a><var>119.18</var>    (d) When any mortgage covers real property located in more than one county in this <br/>
<a id="pl.119.19"></a><var>119.19</var>state the total tax must be paid to the treasurer of the county where the mortgage is first <br/>
<a id="pl.119.20"></a><var>119.20</var>presented for recording, and the payment must be receipted as provided in paragraph <br/>
<a id="pl.119.21"></a><var>119.21</var>(a). If the principal debt or obligation secured by such a multiple county mortgage <br/>
<a id="pl.119.22"></a><var>119.22</var>exceeds $10,000,000, the nonstate portion of the tax must be divided and paid over by <br/>
<a id="pl.119.23"></a><var>119.23</var>the county treasurer receiving it, on or before the 20th day of each month after receipt, <br/>
<a id="pl.119.24"></a><var>119.24</var>to the county or counties entitled in the ratio that the estimated market value of the real <br/>
<a id="pl.119.25"></a><var>119.25</var>property covered by the mortgage in each county bears to the estimated market value of <br/>
<a id="pl.119.26"></a><var>119.26</var>all the real property in this state described in the mortgage. In making the division and <br/>
<a id="pl.119.27"></a><var>119.27</var>payment the county treasurer shall send a statement giving the description of the real <br/>
<a id="pl.119.28"></a><var>119.28</var>property described in the mortgage and the estimated market value of the part located in <br/>
<a id="pl.119.29"></a><var>119.29</var>each county. For this purpose, the treasurer of any county may require the treasurer of <br/>
<a id="pl.119.30"></a><var>119.30</var>any other county to certify to the former the estimated market valuation value of any tract <br/>
<a id="pl.119.31"></a><var>119.31</var>of real property in any mortgage.<br/>
<a id="pl.119.32"></a><var>119.32</var>    (e) The mortgagor must pay the tax imposed by sections 
         <statute_ref>287.01</statute_ref> to 
         <statute_ref>287.12</statute_ref>. The <br/>
<a id="pl.119.33"></a><var>119.33</var>mortgagee may undertake to collect and remit the tax on behalf of the mortgagor. If the <br/>
<a id="pl.119.34"></a><var>119.34</var>mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor, <br/>
<a id="pl.119.35"></a><var>119.35</var>the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the <br/>
<a id="pl.120.1"></a><var>120.1</var>amount of the tax collected for that purpose and the mortgagor is relieved of any further <br/>
<a id="pl.120.2"></a><var>120.2</var>obligation to pay the tax as to the amount collected by the mortgagee for this purpose.<br/>
<br/>
<a id="bill.7.41.0"></a><a id="pl.120.3"></a><var>120.3</var>    Sec. 41. Minnesota Statutes 2010, section 287.23, subdivision 1, is amended to read:<br/>
<a id="pl.120.4"></a><var>120.4</var>    Subdivision 1. <b>Real property outside county.</b> If any taxable deed or instrument <br/>
<a id="pl.120.5"></a><var>120.5</var>describes any real property located in more than one county in this state, the total tax must <br/>
<a id="pl.120.6"></a><var>120.6</var>be paid to the treasurer of the county where the document is first presented for recording, <br/>
<a id="pl.120.7"></a><var>120.7</var>and the payment must be receipted as provided in section 
         <statute_ref>287.08</statute_ref>. If the net consideration <br/>
<a id="pl.120.8"></a><var>120.8</var>exceeds $700,000, the nonstate portion of the tax must be divided and paid over by the <br/>
<a id="pl.120.9"></a><var>120.9</var>county treasurer receiving it, on or before the 20th day of each month after receipt, to <br/>
<a id="pl.120.10"></a><var>120.10</var>the county or counties entitled in the ratio which the estimated market value of the real <br/>
<a id="pl.120.11"></a><var>120.11</var>property covered by the document in each county bears to the estimated market value of <br/>
<a id="pl.120.12"></a><var>120.12</var>all the real property in this state described in the document. In making the division and <br/>
<a id="pl.120.13"></a><var>120.13</var>payment the county treasurer shall send a statement to the other involved counties giving <br/>
<a id="pl.120.14"></a><var>120.14</var>the description of the real property described in the document and the estimated market <br/>
<a id="pl.120.15"></a><var>120.15</var>value of the part located in each county. The treasurer of any county may require the <br/>
<a id="pl.120.16"></a><var>120.16</var>treasurer of any other county to certify to the former the estimated market valuation value <br/>
<a id="pl.120.17"></a><var>120.17</var>of any parcel of real property for this purpose.<br/>
<br/>
<a id="bill.7.42.0"></a><a id="pl.120.18"></a><var>120.18</var>    Sec. 42. Minnesota Statutes 2010, section 353G.08, subdivision 2, is amended to read:<br/>
<a id="pl.120.19"></a><var>120.19</var>    Subd. 2. <b>Cash flow funding requirement.</b> If the executive director determines that <br/>
<a id="pl.120.20"></a><var>120.20</var>an account in the voluntary statewide lump-sum volunteer firefighter retirement plan has <br/>
<a id="pl.120.21"></a><var>120.21</var>insufficient assets to meet the service pensions determined payable from the account, <br/>
<a id="pl.120.22"></a><var>120.22</var>the executive director shall certify the amount of the potential service pension shortfall <br/>
<a id="pl.120.23"></a><var>120.23</var>to the municipality or municipalities and the municipality or municipalities shall make <br/>
<a id="pl.120.24"></a><var>120.24</var>an additional employer contribution to the account within ten days of the certification. <br/>
<a id="pl.120.25"></a><var>120.25</var>If more than one municipality is associated with the account, unless the municipalities <br/>
<a id="pl.120.26"></a><var>120.26</var>agree to a different allocation, the municipalities shall allocate the additional employer <br/>
<a id="pl.120.27"></a><var>120.27</var>contribution one-half in proportion to the population of each municipality and one-half in <br/>
<a id="pl.120.28"></a><var>120.28</var>proportion to the estimated market value of the property of each municipality.<br/>
<br/>
<a id="bill.7.43.0"></a><a id="pl.120.29"></a><var>120.29</var>    Sec. 43. Minnesota Statutes 2010, section 365.025, subdivision 4, is amended to read:<br/>
<a id="pl.120.30"></a><var>120.30</var>    Subd. 4. <b>Major purchases: notice, petition, election.</b> Before buying anything <br/>
<a id="pl.120.31"></a><var>120.31</var>under subdivision 2 that costs more than 0.24177 percent of the estimated market value of <br/>
<a id="pl.120.32"></a><var>120.32</var>the town, the town must follow this subdivision.<br/>
<a id="pl.121.1"></a><var>121.1</var>The town must publish in its official newspaper the board's resolution to pay for the <br/>
<a id="pl.121.2"></a><var>121.2</var>property over time. Then a petition for an election on the contract may be filed with the <br/>
<a id="pl.121.3"></a><var>121.3</var>clerk. The petition must be filed within ten days after the resolution is published. To <br/>
<a id="pl.121.4"></a><var>121.4</var>require the election the petition must be signed by a number of voters equal to ten percent <br/>
<a id="pl.121.5"></a><var>121.5</var>of the voters at the last regular town election. The contract then must be approved by a <br/>
<a id="pl.121.6"></a><var>121.6</var>majority of those voting on the question. The question may be voted on at a regular <br/>
<a id="pl.121.7"></a><var>121.7</var>or special election.<br/>
<br/>
<a id="bill.7.44.0"></a><a id="pl.121.8"></a><var>121.8</var>    Sec. 44. Minnesota Statutes 2010, section 366.095, subdivision 1, is amended to read:<br/>
<a id="pl.121.9"></a><var>121.9</var>    Subdivision 1. <b>Certificates of indebtedness.</b> The town board may issue certificates <br/>
<a id="pl.121.10"></a><var>121.10</var>of indebtedness within the debt limits for a town purpose otherwise authorized by law. <br/>
<a id="pl.121.11"></a><var>121.11</var>The certificates shall be payable in not more than ten years and be issued on the terms and <br/>
<a id="pl.121.12"></a><var>121.12</var>in the manner as the board may determine. If the amount of the certificates to be issued <br/>
<a id="pl.121.13"></a><var>121.13</var>exceeds 0.25 percent of the estimated market value of the town, they shall not be issued <br/>
<a id="pl.121.14"></a><var>121.14</var>for at least ten days after publication in a newspaper of general circulation in the town of <br/>
<a id="pl.121.15"></a><var>121.15</var>the board's resolution determining to issue them. If within that time, a petition asking for <br/>
<a id="pl.121.16"></a><var>121.16</var>an election on the proposition signed by voters equal to ten percent of the number of voters <br/>
<a id="pl.121.17"></a><var>121.17</var>at the last regular town election is filed with the clerk, the certificates shall not be issued <br/>
<a id="pl.121.18"></a><var>121.18</var>until their issuance has been approved by a majority of the votes cast on the question at <br/>
<a id="pl.121.19"></a><var>121.19</var>a regular or special election. A tax levy shall be made to pay the principal and interest <br/>
<a id="pl.121.20"></a><var>121.20</var>on the certificates as in the case of bonds.<br/>
<br/>
<a id="bill.7.45.0"></a><a id="pl.121.21"></a><var>121.21</var>    Sec. 45. Minnesota Statutes 2010, section 366.27, is amended to read:<br/>
<a id="pl.121.22"></a><var>121.22</var><b>366.27 FIREFIGHTERS' RELIEF; TAX LEVY.</b><br/>
<a id="pl.121.23"></a><var>121.23</var>The town board of any town in this state having therein a platted portion on <br/>
<a id="pl.121.24"></a><var>121.24</var>which resides 1,200 or more people, and wherein a duly incorporated firefighters' relief <br/>
<a id="pl.121.25"></a><var>121.25</var>association is located may each year levy a tax not to exceed 0.00806 percent of taxable <br/>
<a id="pl.121.26"></a><var>121.26</var>estimated market value for the benefit of the relief association.<br/>
<br/>
<a id="bill.7.46.0"></a><a id="pl.121.27"></a><var>121.27</var>    Sec. 46. Minnesota Statutes 2010, section 368.01, subdivision 23, is amended to read:<br/>
<a id="pl.121.28"></a><var>121.28</var>    Subd. 23. <b>Financing purchase of certain equipment.</b> The town board may issue <br/>
<a id="pl.121.29"></a><var>121.29</var>certificates of indebtedness within debt limits to purchase fire or police equipment or <br/>
<a id="pl.121.30"></a><var>121.30</var>ambulance equipment or street construction or maintenance equipment. The certificates <br/>
<a id="pl.121.31"></a><var>121.31</var>shall be payable in not more than five years and be issued on terms and in the manner <br/>
<a id="pl.121.32"></a><var>121.32</var>as the board may determine. If the amount of the certificates to be issued to finance a <br/>
<a id="pl.121.33"></a><var>121.33</var>purchase exceeds 0.24177 percent of the estimated market value of the town, excluding <br/>
<a id="pl.122.1"></a><var>122.1</var>money and credits, they shall not be issued for at least ten days after publication in the <br/>
<a id="pl.122.2"></a><var>122.2</var>official newspaper of a town board resolution determining to issue them. If before the end <br/>
<a id="pl.122.3"></a><var>122.3</var>of that time, a petition asking for an election on the proposition signed by voters equal <br/>
<a id="pl.122.4"></a><var>122.4</var>to ten percent of the number of voters at the last regular town election is filed with the <br/>
<a id="pl.122.5"></a><var>122.5</var>clerk, the certificates shall not be issued until the proposition of their issuance has been <br/>
<a id="pl.122.6"></a><var>122.6</var>approved by a majority of the votes cast on the question at a regular or special election. <br/>
<a id="pl.122.7"></a><var>122.7</var>A tax levy shall be made for the payment of the principal and interest on the certificates <br/>
<a id="pl.122.8"></a><var>122.8</var>as in the case of bonds.<br/>
<br/>
<a id="bill.7.47.0"></a><a id="pl.122.9"></a><var>122.9</var>    Sec. 47. Minnesota Statutes 2010, section 368.47, is amended to read:<br/>
<a id="pl.122.10"></a><var>122.10</var><b>368.47 TOWNS MAY BE DISSOLVED.</b><br/>
<a id="pl.122.11"></a><var>122.11</var>(1) When the voters residing within a town have failed to elect any town officials for <br/>
<a id="pl.122.12"></a><var>122.12</var>more than ten years continuously;<br/>
<a id="pl.122.13"></a><var>122.13</var>(2) when a town has failed for a period of ten years to exercise any of the powers <br/>
<a id="pl.122.14"></a><var>122.14</var>and functions of a town;<br/>
<a id="pl.122.15"></a><var>122.15</var>(3) when the estimated market value of a town drops to less than $165,000;<br/>
<a id="pl.122.16"></a><var>122.16</var>(4) when the tax delinquency of a town, exclusive of taxes that are delinquent or <br/>
<a id="pl.122.17"></a><var>122.17</var>unpaid because they are contested in proceedings for the enforcement of taxes, amounts to <br/>
<a id="pl.122.18"></a><var>122.18</var>12 percent of its market value; or<br/>
<a id="pl.122.19"></a><var>122.19</var>(5) when the state or federal government has acquired title to 50 percent of the <br/>
<a id="pl.122.20"></a><var>122.20</var>real estate of a town,<br/>
<a id="pl.122.21"></a><var>122.21</var>which facts, or any of them, may be found and determined by the resolution of the county <br/>
<a id="pl.122.22"></a><var>122.22</var>board of the county in which the town is located, according to the official records in the <br/>
<a id="pl.122.23"></a><var>122.23</var>office of the county auditor, the county board by resolution may declare the town, naming <br/>
<a id="pl.122.24"></a><var>122.24</var>it, dissolved and no longer entitled to exercise any of the powers or functions of a town.<br/>
<a id="pl.122.25"></a><var>122.25</var>In Cass, Itasca, and St. Louis Counties, before the dissolution is effective the voters <br/>
<a id="pl.122.26"></a><var>122.26</var>of the town shall express their approval or disapproval. The town clerk shall, upon a <br/>
<a id="pl.122.27"></a><var>122.27</var>petition signed by a majority of the registered voters of the town, filed with the clerk at <br/>
<a id="pl.122.28"></a><var>122.28</var>least 60 days before a regular or special town election, give notice at the same time and <br/>
<a id="pl.122.29"></a><var>122.29</var>in the same manner of the election that the question of dissolution of the town will be <br/>
<a id="pl.122.30"></a><var>122.30</var>submitted for determination at the election. At the election the question shall be voted <br/>
<a id="pl.122.31"></a><var>122.31</var>upon by a separate ballot, the terms of which shall be either "for dissolution" or "against <br/>
<a id="pl.122.32"></a><var>122.32</var>dissolution." The ballot shall be deposited in a separate ballot box and the result of the <br/>
<a id="pl.122.33"></a><var>122.33</var>voting canvassed, certified, and returned in the same manner and at the same time as <br/>
<a id="pl.122.34"></a><var>122.34</var>other facts and returns of the election. If a majority of the votes cast at the election are <br/>
<a id="pl.123.1"></a><var>123.1</var>for dissolution, the town shall be dissolved. If a majority of the votes cast at the election <br/>
<a id="pl.123.2"></a><var>123.2</var>are against dissolution, the town shall not be dissolved.<br/>
<a id="pl.123.3"></a><var>123.3</var>When a town is dissolved under sections 
         <statute_ref>368.47</statute_ref> to 
         <statute_ref>368.49</statute_ref> the county shall acquire <br/>
<a id="pl.123.4"></a><var>123.4</var>title to any telephone company or other business conducted by the town. The business <br/>
<a id="pl.123.5"></a><var>123.5</var>shall be operated by the board of county commissioners until it can be sold. The <br/>
<a id="pl.123.6"></a><var>123.6</var>subscribers or patrons of the business shall have the first opportunity of purchase. If the <br/>
<a id="pl.123.7"></a><var>123.7</var>town has any outstanding indebtedness chargeable to the business, the county auditor shall <br/>
<a id="pl.123.8"></a><var>123.8</var>levy a tax against the property situated in the dissolved town to pay the indebtedness <br/>
<a id="pl.123.9"></a><var>123.9</var>as it becomes due.<br/>
<br/>
<a id="bill.7.48.0"></a><a id="pl.123.10"></a><var>123.10</var>    Sec. 48. Minnesota Statutes 2010, section 370.01, is amended to read:<br/>
<a id="pl.123.11"></a><var>123.11</var><b>370.01 CHANGE OF BOUNDARIES; CREATION OF NEW COUNTIES.</b><br/>
<a id="pl.123.12"></a><var>123.12</var>The boundaries of counties may be changed by taking territory from a county and <br/>
<a id="pl.123.13"></a><var>123.13</var>attaching it to an adjoining county, and new counties may be established out of territory of <br/>
<a id="pl.123.14"></a><var>123.14</var>one or more existing counties. A new county shall contain at least 400 square miles and <br/>
<a id="pl.123.15"></a><var>123.15</var>have at least 4,000 inhabitants. A proposed new county must have a total taxable estimated <br/>
<a id="pl.123.16"></a><var>123.16</var>market value of at least 35 percent of (i) the total taxable estimated market value of the <br/>
<a id="pl.123.17"></a><var>123.17</var>existing county, or (ii) the average total taxable estimated market value of the existing <br/>
<a id="pl.123.18"></a><var>123.18</var>counties, included in the proposition. The determination of the taxable estimated market <br/>
<a id="pl.123.19"></a><var>123.19</var>value of a county must be made by the commissioner of revenue. An existing county shall <br/>
<a id="pl.123.20"></a><var>123.20</var>not be reduced in area below 400 square miles, have less than 4,000 inhabitants, or have a <br/>
<a id="pl.123.21"></a><var>123.21</var>total taxable estimated market value of less than that required of a new county.<br/>
<a id="pl.123.22"></a><var>123.22</var>No change in the boundaries of any county having an area of more than 2,500 square <br/>
<a id="pl.123.23"></a><var>123.23</var>miles, whether by the creation of a new county, or otherwise, shall detach from the existing <br/>
<a id="pl.123.24"></a><var>123.24</var>county any territory within 12 miles of the county seat.<br/>
<br/>
<a id="bill.7.49.0"></a><a id="pl.123.25"></a><var>123.25</var>    Sec. 49. Minnesota Statutes 2010, section 373.40, subdivision 1, is amended to read:<br/>
<a id="pl.123.26"></a><var>123.26</var>    Subdivision 1. <b>Definitions.</b> For purposes of this section, the following terms have <br/>
<a id="pl.123.27"></a><var>123.27</var>the meanings given.<br/>
<a id="pl.123.28"></a><var>123.28</var>(a) "Bonds" means an obligation as defined under section 
         <statute_ref>475.51</statute_ref>.<br/>
<a id="pl.123.29"></a><var>123.29</var>(b) "Capital improvement" means acquisition or betterment of public lands, <br/>
<a id="pl.123.30"></a><var>123.30</var>buildings, or other improvements within the county for the purpose of a county courthouse, <br/>
<a id="pl.123.31"></a><var>123.31</var>administrative building, health or social service facility, correctional facility, jail, law <br/>
<a id="pl.123.32"></a><var>123.32</var>enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads and <br/>
<a id="pl.123.33"></a><var>123.33</var>bridges, and the acquisition of development rights in the form of conservation easements <br/>
<a id="pl.123.34"></a><var>123.34</var>under chapter 84C. An improvement must have an expected useful life of five years or <br/>
<a id="pl.124.1"></a><var>124.1</var>more to qualify. "Capital improvement" does not include a recreation or sports facility <br/>
<a id="pl.124.2"></a><var>124.2</var>building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility, <br/>
<a id="pl.124.3"></a><var>124.3</var>swimming pool, exercise room or health spa), unless the building is part of an outdoor <br/>
<a id="pl.124.4"></a><var>124.4</var>park facility and is incidental to the primary purpose of outdoor recreation.<br/>
<a id="pl.124.5"></a><var>124.5</var>(c) "Metropolitan county" means a county located in the seven-county metropolitan <br/>
<a id="pl.124.6"></a><var>124.6</var>area as defined in section 
         <statute_ref>473.121</statute_ref> or a county with a population of 90,000 or more.<br/>
<a id="pl.124.7"></a><var>124.7</var>(d) "Population" means the population established by the most recent of the <br/>
<a id="pl.124.8"></a><var>124.8</var>following (determined as of the date the resolution authorizing the bonds was adopted):<br/>
<a id="pl.124.9"></a><var>124.9</var>(1) the federal decennial census,<br/>
<a id="pl.124.10"></a><var>124.10</var>(2) a special census conducted under contract by the United States Bureau of the <br/>
<a id="pl.124.11"></a><var>124.11</var>Census, or<br/>
<a id="pl.124.12"></a><var>124.12</var>(3) a population estimate made either by the Metropolitan Council or by the state <br/>
<a id="pl.124.13"></a><var>124.13</var>demographer under section 
         <statute_ref>4A.02</statute_ref>.<br/>
<a id="pl.124.14"></a><var>124.14</var>(e) "Qualified indoor ice arena" means a facility that meets the requirements of <br/>
<a id="pl.124.15"></a><var>124.15</var>section 
         <statute_ref>373.43</statute_ref>.<br/>
<a id="pl.124.16"></a><var>124.16</var>(f) "Tax capacity" means total taxable market value, but does not include captured <br/>
<a id="pl.124.17"></a><var>124.17</var>market value.<br/>
<br/>
<a id="bill.7.50.0"></a><a id="pl.124.18"></a><var>124.18</var>    Sec. 50. Minnesota Statutes 2010, section 373.40, subdivision 4, is amended to read:<br/>
<a id="pl.124.19"></a><var>124.19</var>    Subd. 4. <b>Limitations on amount.</b> A county may not issue bonds under this section <br/>
<a id="pl.124.20"></a><var>124.20</var>if the maximum amount of principal and interest to become due in any year on all the <br/>
<a id="pl.124.21"></a><var>124.21</var>outstanding bonds issued pursuant to this section (including the bonds to be issued) will <br/>
<a id="pl.124.22"></a><var>124.22</var>equal or exceed 0.12 percent of taxable the estimated market value of property in the <br/>
<a id="pl.124.23"></a><var>124.23</var>county. Calculation of the limit must be made using the taxable estimated market value for <br/>
<a id="pl.124.24"></a><var>124.24</var>the taxes payable year in which the obligations are issued and sold. This section does not <br/>
<a id="pl.124.25"></a><var>124.25</var>limit the authority to issue bonds under any other special or general law.<br/>
<br/>
<a id="bill.7.51.0"></a><a id="pl.124.26"></a><var>124.26</var>    Sec. 51. Minnesota Statutes 2010, section 375.167, subdivision 1, is amended to read:<br/>
<a id="pl.124.27"></a><var>124.27</var>    Subdivision 1. <b>Appropriations.</b> Notwithstanding any contrary law, a county board <br/>
<a id="pl.124.28"></a><var>124.28</var>may appropriate from the general revenue fund to any nonprofit corporation a sum not <br/>
<a id="pl.124.29"></a><var>124.29</var>to exceed 0.00604 percent of taxable estimated market value to provide legal assistance <br/>
<a id="pl.124.30"></a><var>124.30</var>to persons who are unable to afford private legal counsel.<br/>
<br/>
<a id="bill.7.52.0"></a><a id="pl.124.31"></a><var>124.31</var>    Sec. 52. Minnesota Statutes 2010, section 375.18, subdivision 3, is amended to read:<br/>
<a id="pl.124.32"></a><var>124.32</var>    Subd. 3. <b>Courthouse.</b> Each county board may erect, furnish, and maintain a <br/>
<a id="pl.124.33"></a><var>124.33</var>suitable courthouse. No indebtedness shall be created for a courthouse in excess of an <br/>
<a id="pl.125.1"></a><var>125.1</var>amount equal to a levy of 0.04030 percent of taxable estimated market value without the <br/>
<a id="pl.125.2"></a><var>125.2</var>approval of a majority of the voters of the county voting on the question of issuing the <br/>
<a id="pl.125.3"></a><var>125.3</var>obligation at an election.<br/>
<br/>
<a id="bill.7.53.0"></a><a id="pl.125.4"></a><var>125.4</var>    Sec. 53. Minnesota Statutes 2010, section 375.555, is amended to read:<br/>
<a id="pl.125.5"></a><var>125.5</var><b>375.555 FUNDING.</b><br/>
<a id="pl.125.6"></a><var>125.6</var>To implement the county emergency jobs program, the county board may expend <br/>
<a id="pl.125.7"></a><var>125.7</var>an amount equal to what would be generated by a levy of 0.01209 percent of taxable <br/>
<a id="pl.125.8"></a><var>125.8</var>estimated market value. The money to be expended may be from any available funds <br/>
<a id="pl.125.9"></a><var>125.9</var>not otherwise earmarked.<br/>
<br/>
<a id="bill.7.54.0"></a><a id="pl.125.10"></a><var>125.10</var>    Sec. 54. Minnesota Statutes 2010, section 383B.152, is amended to read:<br/>
<a id="pl.125.11"></a><var>125.11</var><b>383B.152 BUILDING AND MAINTENANCE FUND.</b><br/>
<a id="pl.125.12"></a><var>125.12</var>The county board may by resolution levy a tax to provide money which shall be kept <br/>
<a id="pl.125.13"></a><var>125.13</var>in a fund known as the county reserve building and maintenance fund. Money in the fund <br/>
<a id="pl.125.14"></a><var>125.14</var>shall be used solely for the construction, maintenance, and equipping of county buildings <br/>
<a id="pl.125.15"></a><var>125.15</var>that are constructed or maintained by the board. The levy shall not be subject to any limit <br/>
<a id="pl.125.16"></a><var>125.16</var>fixed by any other law or by any board of tax levy or other corresponding body, but shall <br/>
<a id="pl.125.17"></a><var>125.17</var>not exceed 0.02215 percent of taxable estimated market value, less the amount required by <br/>
<a id="pl.125.18"></a><var>125.18</var>chapter 475 to be levied in the year for the payment of the principal of and interest on all <br/>
<a id="pl.125.19"></a><var>125.19</var>bonds issued pursuant to Extra Session Laws 1967, chapter 47, section 1.<br/>
<br/>
<a id="bill.7.55.0"></a><a id="pl.125.20"></a><var>125.20</var>    Sec. 55. Minnesota Statutes 2010, section 383B.245, is amended to read:<br/>
<a id="pl.125.21"></a><var>125.21</var><b>383B.245 LIBRARY LEVY.</b><br/>
<a id="pl.125.22"></a><var>125.22</var>    (a) The county board may levy a tax on the taxable property within the county to <br/>
<a id="pl.125.23"></a><var>125.23</var>acquire, better, and construct county library buildings and branches and to pay principal <br/>
<a id="pl.125.24"></a><var>125.24</var>and interest on bonds issued for that purpose.<br/>
<a id="pl.125.25"></a><var>125.25</var>    (b) The county board may by resolution adopted by a five-sevenths vote issue and <br/>
<a id="pl.125.26"></a><var>125.26</var>sell general obligation bonds of the county in the manner provided in sections 
         <statute_ref>475.60</statute_ref> to <br/>
<statute_ref><a id="pl.125.27"></a><var>125.27</var>475.73
         </statute_ref>. The bonds shall not be subject to the limitations of sections 
         <statute_ref>475.51</statute_ref> to 
         <statute_ref>475.59</statute_ref>, <br/>
<a id="pl.125.28"></a><var>125.28</var>but the maturity years and amounts and interest rates of each series of bonds shall be <br/>
<a id="pl.125.29"></a><var>125.29</var>fixed so that the maximum amount of principal and interest to become due in any year, <br/>
<a id="pl.125.30"></a><var>125.30</var>on the bonds of that series and of all outstanding series issued by or for the purposes of <br/>
<a id="pl.125.31"></a><var>125.31</var>libraries, shall not exceed an amount equal to 0.01612 percent of estimated market value <br/>
<a id="pl.125.32"></a><var>125.32</var>of all taxable property in the county as last finally equalized before the issuance of the new <br/>
<a id="pl.126.1"></a><var>126.1</var>series. When the tax levy authorized in this section is collected it shall be appropriated <br/>
<a id="pl.126.2"></a><var>126.2</var>and credited to a debt service fund for the bonds in amounts required each year in lieu of a <br/>
<a id="pl.126.3"></a><var>126.3</var>countywide tax levy for the debt service fund under section 
         <statute_ref>475.61</statute_ref>.<br/>
<br/>
<a id="bill.7.56.0"></a><a id="pl.126.4"></a><var>126.4</var>    Sec. 56. Minnesota Statutes 2010, section 383B.73, subdivision 1, is amended to read:<br/>
<a id="pl.126.5"></a><var>126.5</var>    Subdivision 1. <b>Levy.</b> To provide funds for the purposes of the Three Rivers Park <br/>
<a id="pl.126.6"></a><var>126.6</var>District as set forth in its annual budget, in lieu of the levies authorized by any other <br/>
<a id="pl.126.7"></a><var>126.7</var>special law for such purposes, the Board of Park District Commissioners may levy <br/>
<a id="pl.126.8"></a><var>126.8</var>taxes on all the taxable property in the county and park district at a rate not exceeding <br/>
<a id="pl.126.9"></a><var>126.9</var>0.03224 percent of estimated market value. Notwithstanding section 
         <statute_ref>398.16</statute_ref>, on or before <br/>
<a id="pl.126.10"></a><var>126.10</var>October 1 of each year, after public hearing, the Board of Park District Commissioners <br/>
<a id="pl.126.11"></a><var>126.11</var>shall adopt a budget for the ensuing year and shall determine the total amount necessary <br/>
<a id="pl.126.12"></a><var>126.12</var>to be raised from ad valorem tax levies to meet its budget. The Board of Park District <br/>
<a id="pl.126.13"></a><var>126.13</var>Commissioners shall submit the budget to the county board. The county board may veto <br/>
<a id="pl.126.14"></a><var>126.14</var>or modify an item contained in the budget. If the county board determines to veto or to <br/>
<a id="pl.126.15"></a><var>126.15</var>modify an item in the budget, it must, within 15 days after the budget was submitted by <br/>
<a id="pl.126.16"></a><var>126.16</var>the district board, state in writing the specific reasons for its objection to the item vetoed <br/>
<a id="pl.126.17"></a><var>126.17</var>or the reason for the modification. The Park District Board, after consideration of the <br/>
<a id="pl.126.18"></a><var>126.18</var>county board's objections and proposed modifications, may reapprove a vetoed item or the <br/>
<a id="pl.126.19"></a><var>126.19</var>original version of an item with respect to which a modification has been proposed, by a <br/>
<a id="pl.126.20"></a><var>126.20</var>two-thirds majority. If the district board does not reapprove a vetoed item, the item shall <br/>
<a id="pl.126.21"></a><var>126.21</var>be deleted from the budget. If the district board does not reapprove the original version <br/>
<a id="pl.126.22"></a><var>126.22</var>of a modified item, the item shall be included in the budget as modified by the county <br/>
<a id="pl.126.23"></a><var>126.23</var>board. After adoption of the final budget and no later than October 1, the superintendent <br/>
<a id="pl.126.24"></a><var>126.24</var>of the park district shall certify to the office of the Hennepin County director of tax and <br/>
<a id="pl.126.25"></a><var>126.25</var>public records exercising the functions of the county auditor the total amount to be raised <br/>
<a id="pl.126.26"></a><var>126.26</var>from ad valorem tax levies to meet its budget for the ensuing year. The director of tax <br/>
<a id="pl.126.27"></a><var>126.27</var>and public records shall add the amount of any levy certified by the district to other tax <br/>
<a id="pl.126.28"></a><var>126.28</var>levies on the property of the county within the district for collection by the director of tax <br/>
<a id="pl.126.29"></a><var>126.29</var>and public records with other taxes. When collected, the director shall make settlement of <br/>
<a id="pl.126.30"></a><var>126.30</var>such taxes with the district in the same manner as other taxes are distributed to the other <br/>
<a id="pl.126.31"></a><var>126.31</var>political subdivisions in Hennepin County.<br/>
<br/>
<a id="bill.7.57.0"></a><a id="pl.126.32"></a><var>126.32</var>    Sec. 57. Minnesota Statutes 2010, section 383E.20, is amended to read:<br/>
<a id="pl.126.33"></a><var>126.33</var><b>383E.20 BONDING FOR COUNTY LIBRARY BUILDINGS.</b><br/>
<a id="pl.127.1"></a><var>127.1</var>    The Anoka County Board may, by resolution adopted by a four-sevenths vote, issue <br/>
<a id="pl.127.2"></a><var>127.2</var>and sell general obligation bonds of the county in the manner provided in chapter 475 to <br/>
<a id="pl.127.3"></a><var>127.3</var>acquire, better, and construct county library buildings. The bonds shall not be subject to the <br/>
<a id="pl.127.4"></a><var>127.4</var>requirements of sections 475.57 to 475.59. The maturity years and amounts and interest <br/>
<a id="pl.127.5"></a><var>127.5</var>rates of each series of bonds shall be fixed so that the maximum amount of principal and <br/>
<a id="pl.127.6"></a><var>127.6</var>interest to become due in any year, on the bonds of that series and of all outstanding series <br/>
<a id="pl.127.7"></a><var>127.7</var>issued by or for the purposes of libraries, shall not exceed an amount equal to .01 percent <br/>
<a id="pl.127.8"></a><var>127.8</var>of the taxable estimated market value of all taxable property in the county, excluding any <br/>
<a id="pl.127.9"></a><var>127.9</var>taxable property taxed by any city for the support of any free public library. When the tax <br/>
<a id="pl.127.10"></a><var>127.10</var>levy authorized in this section is collected, it shall be appropriated and credited to a debt <br/>
<a id="pl.127.11"></a><var>127.11</var>service fund for the bonds. The tax levy for the debt service fund under section 475.61 <br/>
<a id="pl.127.12"></a><var>127.12</var>shall be reduced by the amount available or reasonably anticipated to be available in the <br/>
<a id="pl.127.13"></a><var>127.13</var>fund to make payments otherwise payable from the levy pursuant to section 475.61.<br/>
<br/>
<a id="bill.7.58.0"></a><a id="pl.127.14"></a><var>127.14</var>    Sec. 58. Minnesota Statutes 2010, section 383E.23, is amended to read:<br/>
<a id="pl.127.15"></a><var>127.15</var><b>383E.23 LIBRARY TAX.</b><br/>
<a id="pl.127.16"></a><var>127.16</var>The Anoka County Board may levy a tax of not more than .01 percent of the taxable <br/>
<a id="pl.127.17"></a><var>127.17</var>estimated market value of taxable property located within the county excluding any <br/>
<a id="pl.127.18"></a><var>127.18</var>taxable property taxed by any city for the support of any free public library, to acquire, <br/>
<a id="pl.127.19"></a><var>127.19</var>better, and construct county library buildings and to pay principal and interest on bonds <br/>
<a id="pl.127.20"></a><var>127.20</var>issued for that purpose. The tax shall be disregarded in the calculation of levies or limits <br/>
<a id="pl.127.21"></a><var>127.21</var>on levies provided by section 373.40, or other law.<br/>
<br/>
<a id="bill.7.59.0"></a><a id="pl.127.22"></a><var>127.22</var>    Sec. 59. Minnesota Statutes 2010, section 385.31, is amended to read:<br/>
<a id="pl.127.23"></a><var>127.23</var><b>385.31 PAYMENT OF COUNTY ORDERS OR WARRANTS.</b><br/>
<a id="pl.127.24"></a><var>127.24</var>When any order or warrant drawn on the treasurer is presented for payment, if there <br/>
<a id="pl.127.25"></a><var>127.25</var>is money in the treasury for that purpose, the county treasurer shall redeem the same, and <br/>
<a id="pl.127.26"></a><var>127.26</var>write across the entire face thereof the word "redeemed," the date of the redemption, and <br/>
<a id="pl.127.27"></a><var>127.27</var>the treasurer's official signature. If there is not sufficient funds in the proper accounts to <br/>
<a id="pl.127.28"></a><var>127.28</var>pay such orders they shall be numbered and registered in their order of presentation, <br/>
<a id="pl.127.29"></a><var>127.29</var>and proper endorsement thereof shall be made on such orders and they shall be entitled <br/>
<a id="pl.127.30"></a><var>127.30</var>to payment in like order. Such orders shall bear interest at not to exceed the rate of six <br/>
<a id="pl.127.31"></a><var>127.31</var>percent per annum from such date of presentment. The treasurer, as soon as there is <br/>
<a id="pl.127.32"></a><var>127.32</var>sufficient money in the treasury, shall appropriate and set apart a sum sufficient for the <br/>
<a id="pl.127.33"></a><var>127.33</var>payment of the orders so presented and registered, and, if entitled to interest, issue to the <br/>
<a id="pl.127.34"></a><var>127.34</var>original holder a notice that interest will cease in 30 days from the date of such notice; and, <br/>
<a id="pl.128.1"></a><var>128.1</var>if orders thus entitled to priority of payment are not then presented, the next in order of <br/>
<a id="pl.128.2"></a><var>128.2</var>registry may be paid until such orders are presented. No interest shall be paid on any order, <br/>
<a id="pl.128.3"></a><var>128.3</var>except upon a warrant drawn by the county auditor for that purpose, giving the number <br/>
<a id="pl.128.4"></a><var>128.4</var>and the date of the order on account of which the interest warrant is drawn. In any county <br/>
<a id="pl.128.5"></a><var>128.5</var>in this state now or hereafter having a an estimated market value of all taxable property, <br/>
<a id="pl.128.6"></a><var>128.6</var>exclusive of money and credits, of not less than $1,033,000,000, the county treasurer, in <br/>
<a id="pl.128.7"></a><var>128.7</var>order to save payment of interest on county warrants drawn upon a fund in which there <br/>
<a id="pl.128.8"></a><var>128.8</var>shall be temporarily insufficient money in the treasury to redeem the same, may borrow <br/>
<a id="pl.128.9"></a><var>128.9</var>temporarily from any other fund in the county treasury in which there is a sufficient balance <br/>
<a id="pl.128.10"></a><var>128.10</var>to care for the needs of such fund and allow a temporary loan or transfer to any other fund, <br/>
<a id="pl.128.11"></a><var>128.11</var>and may pay such warrants out of such funds. Any such money so transferred and used in <br/>
<a id="pl.128.12"></a><var>128.12</var>redeeming such county warrants shall be returned to the fund from which drawn as soon <br/>
<a id="pl.128.13"></a><var>128.13</var>as money shall come in to the credit of such fund on which any such warrant was drawn <br/>
<a id="pl.128.14"></a><var>128.14</var>and paid as aforesaid. Any county operating on a cash basis may use a combined form of <br/>
<a id="pl.128.15"></a><var>128.15</var>warrant or order and check, which, when signed by the chair of the county board and by <br/>
<a id="pl.128.16"></a><var>128.16</var>the auditor, is an order or warrant for the payment of the claim, and, when countersigned <br/>
<a id="pl.128.17"></a><var>128.17</var>by the county treasurer, is a check for the payment of the amount thereof.<br/>
<br/>
<a id="bill.7.60.0"></a><a id="pl.128.18"></a><var>128.18</var>    Sec. 60. Minnesota Statutes 2010, section 394.36, subdivision 1, is amended to read:<br/>
<a id="pl.128.19"></a><var>128.19</var>    Subdivision 1. <b>Continuation of nonconformity; limitations.</b> Except as provided in <br/>
<a id="pl.128.20"></a><var>128.20</var>subdivision 2, 3, or 4, any nonconformity, including the lawful use or occupation of land <br/>
<a id="pl.128.21"></a><var>128.21</var>or premises existing at the time of the adoption of an official control under this chapter, <br/>
<a id="pl.128.22"></a><var>128.22</var>may be continued, although the use or occupation does not conform to the official control. <br/>
<a id="pl.128.23"></a><var>128.23</var>If the nonconformity or occupancy is discontinued for a period of more than one year, or <br/>
<a id="pl.128.24"></a><var>128.24</var>any nonconforming building or structure is destroyed by fire or other peril to the extent of <br/>
<a id="pl.128.25"></a><var>128.25</var>50 percent of its estimated market value, any subsequent use or occupancy of the land or <br/>
<a id="pl.128.26"></a><var>128.26</var>premises shall be a conforming use or occupancy.<br/>
<br/>
<a id="bill.7.61.0"></a><a id="pl.128.27"></a><var>128.27</var>    Sec. 61. Minnesota Statutes 2010, section 398A.04, subdivision 8, is amended to read:<br/>
<a id="pl.128.28"></a><var>128.28</var>    Subd. 8. <b>Taxation.</b> Before deciding to exercise the power to tax, the authority shall <br/>
<a id="pl.128.29"></a><var>128.29</var>give six weeks' published notice in all municipalities in the region. If a number of voters <br/>
<a id="pl.128.30"></a><var>128.30</var>in the region equal to five percent of those who voted for candidates for governor at the <br/>
<a id="pl.128.31"></a><var>128.31</var>last gubernatorial election present a petition within nine weeks of the first published notice <br/>
<a id="pl.128.32"></a><var>128.32</var>to the secretary of state requesting that the matter be submitted to popular vote, it shall be <br/>
<a id="pl.128.33"></a><var>128.33</var>submitted at the next general election. The question prepared shall be:<br/>
<a id="pl.128.34"></a><var>128.34</var>"Shall the regional rail authority have the power to impose a property tax?<br/>
<table>
<col width="50px"/>
<col width="40"/>
<col width="12.5"/>
<col width="12.5"/>
<tr>
<td><a id="pl.129.1"></a><var>129.1</var><br/>
</td>
<td></td>
<td>Yes <br/>
<span>
                     							.....
                     						</span></td>
<td></td>
</tr>
<tr>
<td><a id="pl.129.2"></a><var>129.2</var><br/>
</td>
<td></td>
<td>No <span>
                     							.....
                     						</span>"<br/>
</td>
<td></td>
</tr>
</table><a id="pl.129.3"></a><var>129.3</var>If a majority of those voting on the question approve or if no petition is presented <br/>
<a id="pl.129.4"></a><var>129.4</var>within the prescribed time the authority may levy a tax at any annual rate not exceeding <br/>
<a id="pl.129.5"></a><var>129.5</var>0.04835 percent of estimated market value of all taxable property situated within the <br/>
<a id="pl.129.6"></a><var>129.6</var>municipality or municipalities named in its organization resolution. Its recording officer <br/>
<a id="pl.129.7"></a><var>129.7</var>shall file, on or before September 15, in the office of the county auditor of each county <br/>
<a id="pl.129.8"></a><var>129.8</var>in which territory under the jurisdiction of the authority is located a certified copy of the <br/>
<a id="pl.129.9"></a><var>129.9</var>board of commissioners' resolution levying the tax, and each county auditor shall assess <br/>
<a id="pl.129.10"></a><var>129.10</var>and extend upon the tax rolls of each municipality named in the organization resolution the <br/>
<a id="pl.129.11"></a><var>129.11</var>portion of the tax that bears the same ratio to the whole amount that the net tax capacity of <br/>
<a id="pl.129.12"></a><var>129.12</var>taxable property in that municipality bears to the net tax capacity of taxable property in <br/>
<a id="pl.129.13"></a><var>129.13</var>all municipalities named in the organization resolution. Collections of the tax shall be <br/>
<a id="pl.129.14"></a><var>129.14</var>remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991, <br/>
<a id="pl.129.15"></a><var>129.15</var>the amount levied for light rail transit purposes under this subdivision shall not exceed 75 <br/>
<a id="pl.129.16"></a><var>129.16</var>percent of the amount levied in 1990 for light rail transit purposes under this subdivision.<br/>
<br/>
<a id="bill.7.62.0"></a><a id="pl.129.17"></a><var>129.17</var>    Sec. 62. Minnesota Statutes 2010, section 401.05, subdivision 3, is amended to read:<br/>
<a id="pl.129.18"></a><var>129.18</var>    Subd. 3. <b>Leasing.</b> (a) A county or joint powers board of a group of counties <br/>
<a id="pl.129.19"></a><var>129.19</var>which acquires or constructs and equips or improves facilities under this chapter may, <br/>
<a id="pl.129.20"></a><var>129.20</var>with the approval of the board of county commissioners of each county, enter into a <br/>
<a id="pl.129.21"></a><var>129.21</var>lease agreement with a city situated within any of the counties, or a county housing and <br/>
<a id="pl.129.22"></a><var>129.22</var>redevelopment authority established under chapter 469 or any special law. Under the lease <br/>
<a id="pl.129.23"></a><var>129.23</var>agreement, the city or county housing and redevelopment authority shall:<br/>
<a id="pl.129.24"></a><var>129.24</var>(1) construct or acquire and equip or improve a facility in accordance with plans <br/>
<a id="pl.129.25"></a><var>129.25</var>prepared by or at the request of a county or joint powers board of the group of counties <br/>
<a id="pl.129.26"></a><var>129.26</var>and approved by the commissioner of corrections; and<br/>
<a id="pl.129.27"></a><var>129.27</var>(2) finance the facility by the issuance of revenue bonds.<br/>
<a id="pl.129.28"></a><var>129.28</var>(b) The county or joint powers board of a group of counties may lease the facility <br/>
<a id="pl.129.29"></a><var>129.29</var>site, improvements, and equipment for a term upon rental sufficient to produce revenue <br/>
<a id="pl.129.30"></a><var>129.30</var>for the prompt payment of the revenue bonds and all interest accruing on them. Upon <br/>
<a id="pl.129.31"></a><var>129.31</var>completion of payment, the lessee shall acquire title. The real and personal property <br/>
<a id="pl.129.32"></a><var>129.32</var>acquired for the facility constitutes a project and the lease agreement constitutes a revenue <br/>
<a id="pl.129.33"></a><var>129.33</var>agreement as provided in sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>. All proceedings by the city or <br/>
<a id="pl.129.34"></a><var>129.34</var>county housing and redevelopment authority and the county or joint powers board shall be <br/>
<a id="pl.129.35"></a><var>129.35</var>as provided in sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>, with the following adjustments:<br/>
<a id="pl.130.1"></a><var>130.1</var>(1) no tax may be imposed upon the property;<br/>
<a id="pl.130.2"></a><var>130.2</var>(2) the approval of the project by the commissioner of employment and economic <br/>
<a id="pl.130.3"></a><var>130.3</var>development is not required;<br/>
<a id="pl.130.4"></a><var>130.4</var>(3) the Department of Corrections shall be furnished and shall record information <br/>
<a id="pl.130.5"></a><var>130.5</var>concerning each project as it may prescribe, in lieu of reports required on other projects to <br/>
<a id="pl.130.6"></a><var>130.6</var>the commissioner of employment and economic development;<br/>
<a id="pl.130.7"></a><var>130.7</var>(4) the rentals required to be paid under the lease agreement shall not exceed in any <br/>
<a id="pl.130.8"></a><var>130.8</var>year one-tenth of one percent of the estimated market value of property within the county <br/>
<a id="pl.130.9"></a><var>130.9</var>or group of counties as last equalized before the execution of the lease agreement;<br/>
<a id="pl.130.10"></a><var>130.10</var>(5) the county or group of counties shall provide for payment of all rentals due <br/>
<a id="pl.130.11"></a><var>130.11</var>during the term of the lease agreement in the manner required in subdivision 4;<br/>
<a id="pl.130.12"></a><var>130.12</var>(6) no mortgage on the facilities shall be granted for the security of the bonds, but <br/>
<a id="pl.130.13"></a><var>130.13</var>compliance with clause (5) may be enforced as a nondiscretionary duty of the county <br/>
<a id="pl.130.14"></a><var>130.14</var>or group of counties; and<br/>
<a id="pl.130.15"></a><var>130.15</var>(7) the county or the joint powers board of the group of counties may sublease any <br/>
<a id="pl.130.16"></a><var>130.16</var>part of the facilities for purposes consistent with their maintenance and operation.<br/>
<br/>
<a id="bill.7.63.0"></a><a id="pl.130.17"></a><var>130.17</var>    Sec. 63. Minnesota Statutes 2010, section 410.32, is amended to read:<br/>
<a id="pl.130.18"></a><var>130.18</var><b>410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.</b><br/>
<a id="pl.130.19"></a><var>130.19</var>    (a) Notwithstanding any contrary provision of other law or charter, a home rule <br/>
<a id="pl.130.20"></a><var>130.20</var>charter city may, by resolution and without public referendum, issue capital notes subject <br/>
<a id="pl.130.21"></a><var>130.21</var>to the city debt limit to purchase capital equipment.<br/>
<a id="pl.130.22"></a><var>130.22</var>    (b) For purposes of this section, "capital equipment" means:<br/>
<a id="pl.130.23"></a><var>130.23</var>    (1) public safety equipment, ambulance and other medical equipment, road <br/>
<a id="pl.130.24"></a><var>130.24</var>construction and maintenance equipment, and other capital equipment; and<br/>
<a id="pl.130.25"></a><var>130.25</var>    (2) computer hardware and software, whether bundled with machinery or equipment <br/>
<a id="pl.130.26"></a><var>130.26</var>or unbundled.<br/>
<a id="pl.130.27"></a><var>130.27</var>    (c) The equipment or software must have an expected useful life at least as long <br/>
<a id="pl.130.28"></a><var>130.28</var>as the term of the notes.<br/>
<a id="pl.130.29"></a><var>130.29</var>    (d) The notes shall be payable in not more than ten years and be issued on terms <br/>
<a id="pl.130.30"></a><var>130.30</var>and in the manner the city determines. The total principal amount of the capital notes <br/>
<a id="pl.130.31"></a><var>130.31</var>issued in a fiscal year shall not exceed 0.03 percent of the estimated market value of <br/>
<a id="pl.130.32"></a><var>130.32</var>taxable property in the city for that year.<br/>
<a id="pl.130.33"></a><var>130.33</var>    (e) A tax levy shall be made for the payment of the principal and interest on the <br/>
<a id="pl.130.34"></a><var>130.34</var>notes, in accordance with section 
         <statute_ref>475.61</statute_ref>, as in the case of bonds.<br/>
<a id="pl.131.1"></a><var>131.1</var>    (f) Notes issued under this section shall require an affirmative vote of two-thirds of <br/>
<a id="pl.131.2"></a><var>131.2</var>the governing body of the city.<br/>
<a id="pl.131.3"></a><var>131.3</var>    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter <br/>
<a id="pl.131.4"></a><var>131.4</var>city may also issue capital notes subject to its debt limit in the manner and subject to the <br/>
<a id="pl.131.5"></a><var>131.5</var>limitations applicable to statutory cities pursuant to section 
         <statute_ref>412.301</statute_ref>.<br/>
<br/>
<a id="bill.7.64.0"></a><a id="pl.131.6"></a><var>131.6</var>    Sec. 64. Minnesota Statutes 2010, section 412.221, subdivision 2, is amended to read:<br/>
<a id="pl.131.7"></a><var>131.7</var>    Subd. 2. <b>Contracts.</b> The council shall have power to make such contracts as may <br/>
<a id="pl.131.8"></a><var>131.8</var>be deemed necessary or desirable to make effective any power possessed by the council. <br/>
<a id="pl.131.9"></a><var>131.9</var>The city may purchase personal property through a conditional sales contract and real <br/>
<a id="pl.131.10"></a><var>131.10</var>property through a contract for deed under which contracts the seller is confined to the <br/>
<a id="pl.131.11"></a><var>131.11</var>remedy of recovery of the property in case of nonpayment of all or part of the purchase <br/>
<a id="pl.131.12"></a><var>131.12</var>price, which shall be payable over a period of not to exceed five years. When the contract <br/>
<a id="pl.131.13"></a><var>131.13</var>price of property to be purchased by contract for deed or conditional sales contract <br/>
<a id="pl.131.14"></a><var>131.14</var>exceeds 0.24177 percent of the estimated market value of the city, the city may not enter <br/>
<a id="pl.131.15"></a><var>131.15</var>into such a contract for at least ten days after publication in the official newspaper of a <br/>
<a id="pl.131.16"></a><var>131.16</var>council resolution determining to purchase property by such a contract; and, if before the <br/>
<a id="pl.131.17"></a><var>131.17</var>end of that time a petition asking for an election on the proposition signed by voters equal <br/>
<a id="pl.131.18"></a><var>131.18</var>to ten percent of the number of voters at the last regular city election is filed with the clerk, <br/>
<a id="pl.131.19"></a><var>131.19</var>the city may not enter into such a contract until the proposition has been approved by a <br/>
<a id="pl.131.20"></a><var>131.20</var>majority of the votes cast on the question at a regular or special election.<br/>
<br/>
<a id="bill.7.65.0"></a><a id="pl.131.21"></a><var>131.21</var>    Sec. 65. Minnesota Statutes 2010, section 412.301, is amended to read:<br/>
<a id="pl.131.22"></a><var>131.22</var><b>412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.</b><br/>
<a id="pl.131.23"></a><var>131.23</var>    (a) The council may issue certificates of indebtedness or capital notes subject to the <br/>
<a id="pl.131.24"></a><var>131.24</var>city debt limits to purchase capital equipment.<br/>
<a id="pl.131.25"></a><var>131.25</var>    (b) For purposes of this section, "capital equipment" means:<br/>
<a id="pl.131.26"></a><var>131.26</var>    (1) public safety equipment, ambulance and other medical equipment, road <br/>
<a id="pl.131.27"></a><var>131.27</var>construction and maintenance equipment, and other capital equipment; and<br/>
<a id="pl.131.28"></a><var>131.28</var>    (2) computer hardware and software, whether bundled with machinery or equipment <br/>
<a id="pl.131.29"></a><var>131.29</var>or unbundled.<br/>
<a id="pl.131.30"></a><var>131.30</var>    (c) The equipment or software must have an expected useful life at least as long as <br/>
<a id="pl.131.31"></a><var>131.31</var>the terms of the certificates or notes.<br/>
<a id="pl.131.32"></a><var>131.32</var>    (d) Such certificates or notes shall be payable in not more than ten years and shall be <br/>
<a id="pl.131.33"></a><var>131.33</var>issued on such terms and in such manner as the council may determine.<br/>
<a id="pl.132.1"></a><var>132.1</var>    (e) If the amount of the certificates or notes to be issued to finance any such purchase <br/>
<a id="pl.132.2"></a><var>132.2</var>exceeds 0.25 percent of the estimated market value of taxable property in the city, they <br/>
<a id="pl.132.3"></a><var>132.3</var>shall not be issued for at least ten days after publication in the official newspaper of <br/>
<a id="pl.132.4"></a><var>132.4</var>a council resolution determining to issue them; and if before the end of that time, a <br/>
<a id="pl.132.5"></a><var>132.5</var>petition asking for an election on the proposition signed by voters equal to ten percent <br/>
<a id="pl.132.6"></a><var>132.6</var>of the number of voters at the last regular municipal election is filed with the clerk, such <br/>
<a id="pl.132.7"></a><var>132.7</var>certificates or notes shall not be issued until the proposition of their issuance has been <br/>
<a id="pl.132.8"></a><var>132.8</var>approved by a majority of the votes cast on the question at a regular or special election.<br/>
<a id="pl.132.9"></a><var>132.9</var>    (f) A tax levy shall be made for the payment of the principal and interest on such <br/>
<a id="pl.132.10"></a><var>132.10</var>certificates or notes, in accordance with section 
         <statute_ref>475.61</statute_ref>, as in the case of bonds.<br/>
<br/>
<a id="bill.7.66.0"></a><a id="pl.132.11"></a><var>132.11</var>    Sec. 66. Minnesota Statutes 2010, section 428A.02, subdivision 1, is amended to read:<br/>
<a id="pl.132.12"></a><var>132.12</var>    Subdivision 1. <b>Ordinance.</b> The governing body of a city may adopt an ordinance <br/>
<a id="pl.132.13"></a><var>132.13</var>establishing a special service district. Only property that is classified under section 
         <statute_ref>273.13</statute_ref> <br/>
<a id="pl.132.14"></a><var>132.14</var>and used for commercial, industrial, or public utility purposes, or is vacant land zoned or <br/>
<a id="pl.132.15"></a><var>132.15</var>designated on a land use plan for commercial or industrial use and located in the special <br/>
<a id="pl.132.16"></a><var>132.16</var>service district, may be subject to the charges imposed by the city on the special service <br/>
<a id="pl.132.17"></a><var>132.17</var>district. Other types of property may be included within the boundaries of the special <br/>
<a id="pl.132.18"></a><var>132.18</var>service district but are not subject to the levies or charges imposed by the city on the <br/>
<a id="pl.132.19"></a><var>132.19</var>special service district. If 50 percent or more of the estimated market value of a parcel of <br/>
<a id="pl.132.20"></a><var>132.20</var>property is classified under section 
         <statute_ref>273.13</statute_ref> as commercial, industrial, or vacant land zoned <br/>
<a id="pl.132.21"></a><var>132.21</var>or designated on a land use plan for commercial or industrial use, or public utility for the <br/>
<a id="pl.132.22"></a><var>132.22</var>current assessment year, then the entire taxable market value of the property is subject to a <br/>
<a id="pl.132.23"></a><var>132.23</var>service charge based on net tax capacity for purposes of sections 
         <statute_ref>428A.01</statute_ref> to 
         <statute_ref>428A.10</statute_ref>. <br/>
<a id="pl.132.24"></a><var>132.24</var>The ordinance shall describe with particularity the area within the city to be included in <br/>
<a id="pl.132.25"></a><var>132.25</var>the district and the special services to be furnished in the district. The ordinance may not <br/>
<a id="pl.132.26"></a><var>132.26</var>be adopted until after a public hearing has been held on the question. Notice of the hearing <br/>
<a id="pl.132.27"></a><var>132.27</var>shall include the time and place of hearing, a map showing the boundaries of the proposed <br/>
<a id="pl.132.28"></a><var>132.28</var>district, and a statement that all persons owning property in the proposed district that <br/>
<a id="pl.132.29"></a><var>132.29</var>would be subject to a service charge will be given opportunity to be heard at the hearing. <br/>
<a id="pl.132.30"></a><var>132.30</var>Within 30 days after adoption of the ordinance under this subdivision, the governing body <br/>
<a id="pl.132.31"></a><var>132.31</var>shall send a copy of the ordinance to the commissioner of revenue.<br/>
<br/>
<a id="bill.7.67.0"></a><a id="pl.132.32"></a><var>132.32</var>    Sec. 67. Minnesota Statutes 2010, section 430.102, subdivision 2, is amended to read:<br/>
<a id="pl.132.33"></a><var>132.33</var>    Subd. 2. <b>Council approval; special tax levy limitation.</b> The council shall receive <br/>
<a id="pl.132.34"></a><var>132.34</var>and consider the estimate required in subdivision 1 and the items of cost after notice and <br/>
<a id="pl.133.1"></a><var>133.1</var>hearing before it or its appropriate committee as it considers necessary or expedient, <br/>
<a id="pl.133.2"></a><var>133.2</var>and shall approve the estimate, with necessary amendments. The amounts of each item <br/>
<a id="pl.133.3"></a><var>133.3</var>of cost estimated are then appropriated to operate, maintain, and improve the pedestrian <br/>
<a id="pl.133.4"></a><var>133.4</var>mall during the next fiscal year. The amount of the special tax to be charged under <br/>
<a id="pl.133.5"></a><var>133.5</var>subdivision 1, clause (3), must not, however, exceed 0.12089 percent of estimated market <br/>
<a id="pl.133.6"></a><var>133.6</var>value of taxable property in the district. The council shall make any necessary adjustment <br/>
<a id="pl.133.7"></a><var>133.7</var>in costs of operating and maintaining the district to keep the amount of the tax within <br/>
<a id="pl.133.8"></a><var>133.8</var>this limitation.<br/>
<br/>
<a id="bill.7.68.0"></a><a id="pl.133.9"></a><var>133.9</var>    Sec. 68. Minnesota Statutes 2010, section 447.10, is amended to read:<br/>
<a id="pl.133.10"></a><var>133.10</var><b>447.10 TAX LEVY FOR OPERATING AND MAINTAINING HOSPITAL.</b><br/>
<a id="pl.133.11"></a><var>133.11</var>The governing body of a city of the first class owning a hospital may annually levy <br/>
<a id="pl.133.12"></a><var>133.12</var>a tax to operate and maintain the hospital. The tax must not exceed 0.00806 percent of <br/>
<a id="pl.133.13"></a><var>133.13</var>taxable estimated market value.<br/>
<br/>
<a id="bill.7.69.0"></a><a id="pl.133.14"></a><var>133.14</var>    Sec. 69. Minnesota Statutes 2010, section 450.19, is amended to read:<br/>
<a id="pl.133.15"></a><var>133.15</var><b>450.19 TOURIST CAMPING GROUNDS.</b><br/>
<a id="pl.133.16"></a><var>133.16</var>A home rule charter or statutory city or town may establish and maintain public <br/>
<a id="pl.133.17"></a><var>133.17</var>tourist camping grounds. The governing body thereof may acquire by lease, purchase, or <br/>
<a id="pl.133.18"></a><var>133.18</var>gift, suitable lands located either within or without the corporate limits for use as public <br/>
<a id="pl.133.19"></a><var>133.19</var>tourist camping grounds and provide for the equipment, operation, and maintenance <br/>
<a id="pl.133.20"></a><var>133.20</var>of the same. The amount that may be expended for the maintenance, improvement, or <br/>
<a id="pl.133.21"></a><var>133.21</var>operation of tourist camping grounds shall not exceed, in any year, a sum equal to 0.00806 <br/>
<a id="pl.133.22"></a><var>133.22</var>percent of taxable estimated market value.<br/>
<br/>
<a id="bill.7.70.0"></a><a id="pl.133.23"></a><var>133.23</var>    Sec. 70. Minnesota Statutes 2010, section 450.25, is amended to read:<br/>
<a id="pl.133.24"></a><var>133.24</var><b>450.25 MUSEUM, GALLERY, OR SCHOOL OF ARTS OR CRAFTS; TAX </b><br/>
<a id="pl.133.25"></a><var>133.25</var><b>LEVY.</b><br/>
<a id="pl.133.26"></a><var>133.26</var>After the acquisition of any museum, gallery, or school of arts or crafts, the board <br/>
<a id="pl.133.27"></a><var>133.27</var>of park commissioners of the city in which it is located shall cause to be included in the <br/>
<a id="pl.133.28"></a><var>133.28</var>annual tax levy upon all the taxable property of the county in which the museum, gallery, <br/>
<a id="pl.133.29"></a><var>133.29</var>or school of arts or crafts is located, a tax of 0.00846 percent of estimated market value. <br/>
<a id="pl.133.30"></a><var>133.30</var>The board shall certify the levy to the county auditor and it shall be added to, and collected <br/>
<a id="pl.133.31"></a><var>133.31</var>with and as part of, the general, real, and personal property taxes, with like penalties and <br/>
<a id="pl.133.32"></a><var>133.32</var>interest, in case of nonpayment and default, and all provisions of law in respect to the <br/>
<a id="pl.134.1"></a><var>134.1</var>levy, collection, and enforcement of other taxes shall, so far as applicable, be followed in <br/>
<a id="pl.134.2"></a><var>134.2</var>respect of these taxes. All of these taxes, penalties, and interest, when collected, shall be <br/>
<a id="pl.134.3"></a><var>134.3</var>paid to the city treasurer of the city in which is located the museum, gallery, or school <br/>
<a id="pl.134.4"></a><var>134.4</var>of arts or crafts and credited to a fund to be known as the park museum fund, and shall <br/>
<a id="pl.134.5"></a><var>134.5</var>be used only for the purposes specified in sections 
         <statute_ref>450.23</statute_ref> to 
         <statute_ref>450.25</statute_ref>. Any part of the <br/>
<a id="pl.134.6"></a><var>134.6</var>proceeds of the levy not expended for the purposes specified in section 
         <statute_ref>450.24</statute_ref> may be <br/>
<a id="pl.134.7"></a><var>134.7</var>used for the erection of new buildings for the same purposes.<br/>
<br/>
<a id="bill.7.71.0"></a><a id="pl.134.8"></a><var>134.8</var>    Sec. 71. Minnesota Statutes 2010, section 458A.10, is amended to read:<br/>
<a id="pl.134.9"></a><var>134.9</var><b>458A.10 PROPERTY TAX.</b><br/>
<a id="pl.134.10"></a><var>134.10</var>The commission shall annually levy a tax not to exceed 0.12089 percent of estimated <br/>
<a id="pl.134.11"></a><var>134.11</var>market value on all the taxable property in the transit area at a rate sufficient to produce <br/>
<a id="pl.134.12"></a><var>134.12</var>an amount necessary for the purposes of sections 
         <statute_ref>458A.01</statute_ref> to 
         <statute_ref>458A.15</statute_ref>, other than the <br/>
<a id="pl.134.13"></a><var>134.13</var>payment of principal and interest due on any revenue bonds issued pursuant to section <br/>
<statute_ref><a id="pl.134.14"></a><var>134.14</var>458A.05
         </statute_ref>. Property taxes levied under this section shall be certified by the commission to <br/>
<a id="pl.134.15"></a><var>134.15</var>the county auditors of the transit area, extended, assessed, and collected in the manner <br/>
<a id="pl.134.16"></a><var>134.16</var>provided by law for the property taxes levied by the governing bodies of cities. The <br/>
<a id="pl.134.17"></a><var>134.17</var>proceeds of the taxes levied under this section shall be remitted by the respective county <br/>
<a id="pl.134.18"></a><var>134.18</var>treasurers to the treasurer of the commission, who shall credit the same to the funds of <br/>
<a id="pl.134.19"></a><var>134.19</var>the commission for use for the purposes of sections 
         <statute_ref>458A.01</statute_ref> to 
         <statute_ref>458A.15</statute_ref> subject to any <br/>
<a id="pl.134.20"></a><var>134.20</var>applicable pledges or limitations on account of tax anticipation certificates or other <br/>
<a id="pl.134.21"></a><var>134.21</var>specific purposes. At any time after making a tax levy under this section and certifying <br/>
<a id="pl.134.22"></a><var>134.22</var>it to the county auditors, the commission may issue general obligation certificates of <br/>
<a id="pl.134.23"></a><var>134.23</var>indebtedness in anticipation of the collection of the taxes as provided by section 
         <statute_ref>412.261</statute_ref>.<br/>
<br/>
<a id="bill.7.72.0"></a><a id="pl.134.24"></a><var>134.24</var>    Sec. 72. Minnesota Statutes 2010, section 458A.31, subdivision 1, is amended to read:<br/>
<a id="pl.134.25"></a><var>134.25</var>    Subdivision 1. <b>Levy limit.</b> Notwithstanding anything to the contrary contained in <br/>
<a id="pl.134.26"></a><var>134.26</var>the charter of the city of Duluth, any ordinance thereof, or any statute applicable thereto, <br/>
<a id="pl.134.27"></a><var>134.27</var>limiting the amount levied in any one year for general or special purposes, the city council <br/>
<a id="pl.134.28"></a><var>134.28</var>of the city of Duluth shall each year levy a tax in an amount not to exceed 0.07253 <br/>
<a id="pl.134.29"></a><var>134.29</var>percent of taxable estimated market value, by ordinance. An ordinance fixing the levy <br/>
<a id="pl.134.30"></a><var>134.30</var>shall take effect immediately upon its passage and approval. The proceeds of the levy <br/>
<a id="pl.134.31"></a><var>134.31</var>shall be paid into the city treasury and deposited in the operating fund provided for in <br/>
<a id="pl.134.32"></a><var>134.32</var>section 
         <statute_ref>458A.24, subdivision 3</statute_ref>.<br/>
<br/>
<a id="bill.7.73.0"></a><a id="pl.134.33"></a><var>134.33</var>    Sec. 73. Minnesota Statutes 2010, section 465.04, is amended to read:<br/>
<a id="pl.135.1"></a><var>135.1</var><b>465.04 ACCEPTANCE OF GIFTS.</b><br/>
<a id="pl.135.2"></a><var>135.2</var>Cities of the second, third, or fourth class, having at any time a an estimated <br/>
<a id="pl.135.3"></a><var>135.3</var>market value of not more than $41,000,000, exclusive of money and credits, as officially <br/>
<a id="pl.135.4"></a><var>135.4</var>equalized by the commissioner of revenue, either under home rule charter or under the <br/>
<a id="pl.135.5"></a><var>135.5</var>laws of this state, in addition to all other powers possessed by them, hereby are authorized <br/>
<a id="pl.135.6"></a><var>135.6</var>and empowered to receive and accept gifts and donations for the use and benefit of <br/>
<a id="pl.135.7"></a><var>135.7</var>such cities and the inhabitants thereof upon terms and conditions to be approved by the <br/>
<a id="pl.135.8"></a><var>135.8</var>governing bodies of such cities; and such cities are authorized to comply with and perform <br/>
<a id="pl.135.9"></a><var>135.9</var>such terms and conditions, which may include payment to the donor or donors of interest <br/>
<a id="pl.135.10"></a><var>135.10</var>on the value of the gift at not exceeding five percent per annum payable annually or <br/>
<a id="pl.135.11"></a><var>135.11</var>semiannually, during the remainder of the natural life or lives of such donor or donors.<br/>
<br/>
<a id="bill.7.74.0"></a><a id="pl.135.12"></a><var>135.12</var>    Sec. 74. Minnesota Statutes 2010, section 469.033, subdivision 6, is amended to read:<br/>
<a id="pl.135.13"></a><var>135.13</var>    Subd. 6. <b>Operation area as taxing district, special tax.</b> All of the territory <br/>
<a id="pl.135.14"></a><var>135.14</var>included within the area of operation of any authority shall constitute a taxing district for <br/>
<a id="pl.135.15"></a><var>135.15</var>the purpose of levying and collecting special benefit taxes as provided in this subdivision. <br/>
<a id="pl.135.16"></a><var>135.16</var>All of the taxable property, both real and personal, within that taxing district shall be <br/>
<a id="pl.135.17"></a><var>135.17</var>deemed to be benefited by projects to the extent of the special taxes levied under this <br/>
<a id="pl.135.18"></a><var>135.18</var>subdivision. Subject to the consent by resolution of the governing body of the city in and <br/>
<a id="pl.135.19"></a><var>135.19</var>for which it was created, an authority may levy a tax upon all taxable property within that <br/>
<a id="pl.135.20"></a><var>135.20</var>taxing district. The tax shall be extended, spread, and included with and as a part of <br/>
<a id="pl.135.21"></a><var>135.21</var>the general taxes for state, county, and municipal purposes by the county auditor, to be <br/>
<a id="pl.135.22"></a><var>135.22</var>collected and enforced therewith, together with the penalty, interest, and costs. As the tax, <br/>
<a id="pl.135.23"></a><var>135.23</var>including any penalties, interest, and costs, is collected by the county treasurer it shall be <br/>
<a id="pl.135.24"></a><var>135.24</var>accumulated and kept in a separate fund to be known as the "housing and redevelopment <br/>
<a id="pl.135.25"></a><var>135.25</var>project fund." The money in the fund shall be turned over to the authority at the same time <br/>
<a id="pl.135.26"></a><var>135.26</var>and in the same manner that the tax collections for the city are turned over to the city, and <br/>
<a id="pl.135.27"></a><var>135.27</var>shall be expended only for the purposes of sections 
         <statute_ref>469.001</statute_ref> to 
         <statute_ref>469.047</statute_ref>. It shall be paid <br/>
<a id="pl.135.28"></a><var>135.28</var>out upon vouchers signed by the chair of the authority or an authorized representative. <br/>
<a id="pl.135.29"></a><var>135.29</var>The amount of the levy shall be an amount approved by the governing body of the city, but <br/>
<a id="pl.135.30"></a><var>135.30</var>shall not exceed 0.0185 percent of taxable estimated  market value. The authority shall <br/>
<a id="pl.135.31"></a><var>135.31</var>each year formulate and file a budget in accordance with the budget procedure of the city <br/>
<a id="pl.135.32"></a><var>135.32</var>in the same manner as required of executive departments of the city or, if no budgets are <br/>
<a id="pl.135.33"></a><var>135.33</var>required to be filed, by August 1. The amount of the tax levy for the following year shall <br/>
<a id="pl.135.34"></a><var>135.34</var>be based on that budget.<br/>
<br/>
<a id="bill.7.75.0"></a><a id="pl.136.1"></a><var>136.1</var>    Sec. 75. Minnesota Statutes 2010, section 469.034, subdivision 2, is amended to read:<br/>
<a id="pl.136.2"></a><var>136.2</var>    Subd. 2. <b>General obligation revenue bonds.</b> (a) An authority may pledge the <br/>
<a id="pl.136.3"></a><var>136.3</var>general obligation of the general jurisdiction governmental unit as additional security for <br/>
<a id="pl.136.4"></a><var>136.4</var>bonds payable from income or revenues of the project or the authority. The authority <br/>
<a id="pl.136.5"></a><var>136.5</var>must find that the pledged revenues will equal or exceed 110 percent of the principal and <br/>
<a id="pl.136.6"></a><var>136.6</var>interest due on the bonds for each year. The proceeds of the bonds must be used for a <br/>
<a id="pl.136.7"></a><var>136.7</var>qualified housing development project or projects. The obligations must be issued and <br/>
<a id="pl.136.8"></a><var>136.8</var>sold in the manner and following the procedures provided by chapter 475, except the <br/>
<a id="pl.136.9"></a><var>136.9</var>obligations are not subject to approval by the electors, and the maturities may extend to <br/>
<a id="pl.136.10"></a><var>136.10</var>not more than 35 years for obligations sold to finance housing for the elderly and 40 years <br/>
<a id="pl.136.11"></a><var>136.11</var>for other obligations issued under this subdivision. The authority is the municipality for <br/>
<a id="pl.136.12"></a><var>136.12</var>purposes of chapter 475.<br/>
<a id="pl.136.13"></a><var>136.13</var>(b) The principal amount of the issue must be approved by the governing body of <br/>
<a id="pl.136.14"></a><var>136.14</var>the general jurisdiction governmental unit whose general obligation is pledged. Public <br/>
<a id="pl.136.15"></a><var>136.15</var>hearings must be held on issuance of the obligations by both the authority and the general <br/>
<a id="pl.136.16"></a><var>136.16</var>jurisdiction governmental unit. The hearings must be held at least 15 days, but not more <br/>
<a id="pl.136.17"></a><var>136.17</var>than 120 days, before the sale of the obligations.<br/>
<a id="pl.136.18"></a><var>136.18</var>(c) The maximum amount of general obligation bonds that may be issued and <br/>
<a id="pl.136.19"></a><var>136.19</var>outstanding under this section equals the greater of (1) one-half of one percent of the <br/>
<a id="pl.136.20"></a><var>136.20</var>taxable estimated market value of the general jurisdiction governmental unit whose <br/>
<a id="pl.136.21"></a><var>136.21</var>general obligation is pledged, or (2) $3,000,000. In the case of county or multicounty <br/>
<a id="pl.136.22"></a><var>136.22</var>general obligation bonds, the outstanding general obligation bonds of all cities in the <br/>
<a id="pl.136.23"></a><var>136.23</var>county or counties issued under this subdivision must be added in calculating the limit <br/>
<a id="pl.136.24"></a><var>136.24</var>under clause (1).<br/>
<a id="pl.136.25"></a><var>136.25</var>(d) "General jurisdiction governmental unit" means the city in which the housing <br/>
<a id="pl.136.26"></a><var>136.26</var>development project is located. In the case of a county or multicounty authority, the <br/>
<a id="pl.136.27"></a><var>136.27</var>county or counties may act as the general jurisdiction governmental unit. In the case of <br/>
<a id="pl.136.28"></a><var>136.28</var>a multicounty authority, the pledge of the general obligation is a pledge of a tax on the <br/>
<a id="pl.136.29"></a><var>136.29</var>taxable property in each of the counties.<br/>
<a id="pl.136.30"></a><var>136.30</var>(e) "Qualified housing development project" means a housing development project <br/>
<a id="pl.136.31"></a><var>136.31</var>providing housing either for the elderly or for individuals and families with incomes not <br/>
<a id="pl.136.32"></a><var>136.32</var>greater than 80 percent of the median family income as estimated by the United States <br/>
<a id="pl.136.33"></a><var>136.33</var>Department of Housing and Urban Development for the standard metropolitan statistical <br/>
<a id="pl.136.34"></a><var>136.34</var>area or the nonmetropolitan county in which the project is located. The project must be <br/>
<a id="pl.136.35"></a><var>136.35</var>owned for the term of the bonds either by the authority or by a limited partnership or other <br/>
<a id="pl.136.36"></a><var>136.36</var>entity in which the authority or another entity under the sole control of the authority is <br/>
<a id="pl.137.1"></a><var>137.1</var>the sole general partner and the partnership or other entity must receive (1) an allocation <br/>
<a id="pl.137.2"></a><var>137.2</var>from the Department of Management and Budget or an entitlement issuer of tax-exempt <br/>
<a id="pl.137.3"></a><var>137.3</var>bonding authority for the project and a preliminary determination by the Minnesota <br/>
<a id="pl.137.4"></a><var>137.4</var>Housing Finance Agency or the applicable suballocator of tax credits that the project <br/>
<a id="pl.137.5"></a><var>137.5</var>will qualify for four percent low-income housing tax credits or (2) a reservation of nine <br/>
<a id="pl.137.6"></a><var>137.6</var>percent low-income housing tax credits from the Minnesota Housing Finance Agency or a <br/>
<a id="pl.137.7"></a><var>137.7</var>suballocator of tax credits for the project. A qualified housing development project may <br/>
<a id="pl.137.8"></a><var>137.8</var>admit nonelderly individuals and families with higher incomes if:<br/>
<a id="pl.137.9"></a><var>137.9</var>(1) three years have passed since initial occupancy;<br/>
<a id="pl.137.10"></a><var>137.10</var>(2) the authority finds the project is experiencing unanticipated vacancies resulting in <br/>
<a id="pl.137.11"></a><var>137.11</var>insufficient revenues, because of changes in population or other unforeseen circumstances <br/>
<a id="pl.137.12"></a><var>137.12</var>that occurred after the initial finding of adequate revenues; and<br/>
<a id="pl.137.13"></a><var>137.13</var>(3) the authority finds a tax levy or payment from general assets of the general <br/>
<a id="pl.137.14"></a><var>137.14</var>jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher <br/>
<a id="pl.137.15"></a><var>137.15</var>income individuals or families are not admitted.<br/>
<a id="pl.137.16"></a><var>137.16</var>(f) The authority may issue bonds to refund bonds issued under this subdivision in <br/>
<a id="pl.137.17"></a><var>137.17</var>accordance with section 
         <statute_ref>475.67</statute_ref>. The finding of the adequacy of pledged revenues required <br/>
<a id="pl.137.18"></a><var>137.18</var>by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the <br/>
<a id="pl.137.19"></a><var>137.19</var>issuance of refunding bonds. This paragraph applies to refunding bonds issued on and <br/>
<a id="pl.137.20"></a><var>137.20</var>after July 1, 1992.<br/>
<br/>
<a id="bill.7.76.0"></a><a id="pl.137.21"></a><var>137.21</var>    Sec. 76. Minnesota Statutes 2010, section 469.053, subdivision 4, is amended to read:<br/>
<a id="pl.137.22"></a><var>137.22</var>    Subd. 4. <b>Mandatory city levy.</b> A city shall, at the request of the port authority, levy <br/>
<a id="pl.137.23"></a><var>137.23</var>a tax in any year for the benefit of the port authority. The tax must not exceed 0.01813 <br/>
<a id="pl.137.24"></a><var>137.24</var>percent of taxable estimated market value. The amount levied must be paid by the city <br/>
<a id="pl.137.25"></a><var>137.25</var>treasurer to the treasurer of the port authority, to be spent by the authority.<br/>
<br/>
<a id="bill.7.77.0"></a><a id="pl.137.26"></a><var>137.26</var>    Sec. 77. Minnesota Statutes 2010, section 469.053, subdivision 4a, is amended to read:<br/>
<a id="pl.137.27"></a><var>137.27</var>    Subd. 4a. <b>Seaway port authority levy.</b> A levy made under this subdivision shall <br/>
<a id="pl.137.28"></a><var>137.28</var>replace the mandatory city levy under subdivision 4. A seaway port authority is a special <br/>
<a id="pl.137.29"></a><var>137.29</var>taxing district under section 
         <statute_ref>275.066</statute_ref> and may levy a tax in any year for the benefit of the <br/>
<a id="pl.137.30"></a><var>137.30</var>seaway port authority. The tax must not exceed 0.01813 percent of taxable estimated <br/>
<a id="pl.137.31"></a><var>137.31</var>market value. The county auditor shall distribute the proceeds of the property tax levy to <br/>
<a id="pl.137.32"></a><var>137.32</var>the seaway port authority.<br/>
<br/>
<a id="bill.7.78.0"></a><a id="pl.137.33"></a><var>137.33</var>    Sec. 78. Minnesota Statutes 2010, section 469.053, subdivision 6, is amended to read:<br/>
<a id="pl.138.1"></a><var>138.1</var>    Subd. 6. <b>Discretionary city levy.</b> Upon request of a port authority, the port <br/>
<a id="pl.138.2"></a><var>138.2</var>authority's city may levy a tax to be spent by and for its port authority. The tax must <br/>
<a id="pl.138.3"></a><var>138.3</var>enable the port authority to carry out efficiently and in the public interest sections 
         <statute_ref>469.048</statute_ref> <br/>
<a id="pl.138.4"></a><var>138.4</var>to 
         <statute_ref>469.068</statute_ref> to create and develop industrial development districts. The levy must not be <br/>
<a id="pl.138.5"></a><var>138.5</var>more than 0.00282 percent of taxable estimated market value. The county treasurer shall <br/>
<a id="pl.138.6"></a><var>138.6</var>pay the proceeds of the tax to the port authority treasurer. The money may be spent by <br/>
<a id="pl.138.7"></a><var>138.7</var>the authority in performance of its duties to create and develop industrial development <br/>
<a id="pl.138.8"></a><var>138.8</var>districts. In spending the money the authority must judge what best serves the public <br/>
<a id="pl.138.9"></a><var>138.9</var>interest. The levy in this subdivision is in addition to the levy in subdivision 4.<br/>
<br/>
<a id="bill.7.79.0"></a><a id="pl.138.10"></a><var>138.10</var>    Sec. 79. Minnesota Statutes 2010, section 469.107, subdivision 1, is amended to read:<br/>
<a id="pl.138.11"></a><var>138.11</var>    Subdivision 1. <b>City tax levy.</b> A city may, at the request of the authority, levy a tax in <br/>
<a id="pl.138.12"></a><var>138.12</var>any year for the benefit of the authority. The tax must be not more than 0.01813 percent of <br/>
<a id="pl.138.13"></a><var>138.13</var>taxable estimated market value. The amount levied must be paid by the city treasurer to <br/>
<a id="pl.138.14"></a><var>138.14</var>the treasurer of the authority, to be spent by the authority.<br/>
<br/>
<a id="bill.7.80.0"></a><a id="pl.138.15"></a><var>138.15</var>    Sec. 80. Minnesota Statutes 2010, section 469.177, subdivision 1, is amended to read:<br/>
<a id="pl.138.16"></a><var>138.16</var>    Subdivision 1. <b>Original net tax capacity.</b> (a) Upon or after adoption of a tax <br/>
<a id="pl.138.17"></a><var>138.17</var>increment financing plan, the auditor of any county in which the district is situated shall, <br/>
<a id="pl.138.18"></a><var>138.18</var>upon request of the authority, certify the original net tax capacity of the tax increment <br/>
<a id="pl.138.19"></a><var>138.19</var>financing district and that portion of the district overlying any subdistrict as described in <br/>
<a id="pl.138.20"></a><var>138.20</var>the tax increment financing plan and shall certify in each year thereafter the amount by <br/>
<a id="pl.138.21"></a><var>138.21</var>which the original net tax capacity has increased or decreased as a result of a change in tax <br/>
<a id="pl.138.22"></a><var>138.22</var>exempt status of property within the district and any subdistrict, reduction or enlargement <br/>
<a id="pl.138.23"></a><var>138.23</var>of the district or changes pursuant to subdivision 4. The auditor shall certify the amount <br/>
<a id="pl.138.24"></a><var>138.24</var>within 30 days after receipt of the request and sufficient information to identify the parcels <br/>
<a id="pl.138.25"></a><var>138.25</var>included in the district. The certification relates to the taxes payable year as provided in <br/>
<a id="pl.138.26"></a><var>138.26</var>subdivision 6.<br/>
<a id="pl.138.27"></a><var>138.27</var>    (b) If the classification under section 
         <statute_ref>273.13</statute_ref> of property located in a district changes <br/>
<a id="pl.138.28"></a><var>138.28</var>to a classification that has a different assessment ratio, the original net tax capacity of that <br/>
<a id="pl.138.29"></a><var>138.29</var>property must be redetermined at the time when its use is changed as if the property had <br/>
<a id="pl.138.30"></a><var>138.30</var>originally been classified in the same class in which it is classified after its use is changed.<br/>
<a id="pl.138.31"></a><var>138.31</var>    (c) The amount to be added to the original net tax capacity of the district as a result <br/>
<a id="pl.138.32"></a><var>138.32</var>of previously tax exempt real property within the district becoming taxable equals the net <br/>
<a id="pl.138.33"></a><var>138.33</var>tax capacity of the real property as most recently assessed pursuant to section 
         <statute_ref>273.18</statute_ref> or, if <br/>
<a id="pl.138.34"></a><var>138.34</var>that assessment was made more than one year prior to the date of title transfer rendering <br/>
<a id="pl.139.1"></a><var>139.1</var>the property taxable, the net tax capacity assessed by the assessor at the time of the <br/>
<a id="pl.139.2"></a><var>139.2</var>transfer. If improvements are made to tax exempt property after the municipality approves <br/>
<a id="pl.139.3"></a><var>139.3</var>the district and before the parcel becomes taxable, the assessor shall, at the request of <br/>
<a id="pl.139.4"></a><var>139.4</var>the authority, separately assess the estimated market value of the improvements. If the <br/>
<a id="pl.139.5"></a><var>139.5</var>property becomes taxable, the county auditor shall add to original net tax capacity, the net <br/>
<a id="pl.139.6"></a><var>139.6</var>tax capacity of the parcel, excluding the separately assessed improvements. If substantial <br/>
<a id="pl.139.7"></a><var>139.7</var>taxable improvements were made to a parcel after certification of the district and if the <br/>
<a id="pl.139.8"></a><var>139.8</var>property later becomes tax exempt, in whole or part, as a result of the authority acquiring <br/>
<a id="pl.139.9"></a><var>139.9</var>the property through foreclosure or exercise of remedies under a lease or other revenue <br/>
<a id="pl.139.10"></a><var>139.10</var>agreement or as a result of tax forfeiture, the amount to be added to the original net tax <br/>
<a id="pl.139.11"></a><var>139.11</var>capacity of the district as a result of the property again becoming taxable is the amount <br/>
<a id="pl.139.12"></a><var>139.12</var>of the parcel's value that was included in original net tax capacity when the parcel was <br/>
<a id="pl.139.13"></a><var>139.13</var>first certified. The amount to be added to the original net tax capacity of the district as a <br/>
<a id="pl.139.14"></a><var>139.14</var>result of enlargements equals the net tax capacity of the added real property as most <br/>
<a id="pl.139.15"></a><var>139.15</var>recently certified by the commissioner of revenue as of the date of modification of the tax <br/>
<a id="pl.139.16"></a><var>139.16</var>increment financing plan pursuant to section 
         <statute_ref>469.175, subdivision 4</statute_ref>.<br/>
<a id="pl.139.17"></a><var>139.17</var>    (d) If the net tax capacity of a property increases because the property no longer <br/>
<a id="pl.139.18"></a><var>139.18</var>qualifies under the Minnesota Agricultural Property Tax Law, section 
         <statute_ref>273.111</statute_ref>; the <br/>
<a id="pl.139.19"></a><var>139.19</var>Minnesota Open Space Property Tax Law, section 
         <statute_ref>273.112</statute_ref>; or the Metropolitan <br/>
<a id="pl.139.20"></a><var>139.20</var>Agricultural Preserves Act, chapter 473H, or because platted, unimproved property is <br/>
<a id="pl.139.21"></a><var>139.21</var>improved or market value is increased after approval of the plat under section 
         <statute_ref>273.11, <br/>
<a id="pl.139.22"></a><var>139.22</var>subdivision 14
</statute_ref>, 14a, or 14b, the increase in net tax capacity must be added to the original <br/>
<a id="pl.139.23"></a><var>139.23</var>net tax capacity. If the net tax capacity of a property increases because the property <br/>
<a id="pl.139.24"></a><var>139.24</var>no longer qualifies for the homestead market value exclusion under section 273.13, <br/>
<a id="pl.139.25"></a><var>139.25</var>subdivision 35, the increase in net tax capacity must be added to the original net tax <br/>
<a id="pl.139.26"></a><var>139.26</var>capacity if the original construction of the affected home was completed before the date <br/>
<a id="pl.139.27"></a><var>139.27</var>the assessor certified the original net tax capacity of the district.<br/>
<a id="pl.139.28"></a><var>139.28</var>    (e) The amount to be subtracted from the original net tax capacity of the district as a <br/>
<a id="pl.139.29"></a><var>139.29</var>result of previously taxable real property within the district becoming tax exempt or <br/>
<a id="pl.139.30"></a><var>139.30</var>qualifying in whole or part for an exclusion from taxable market value, or a reduction in <br/>
<a id="pl.139.31"></a><var>139.31</var>the geographic area of the district, shall be the amount of original net tax capacity initially <br/>
<a id="pl.139.32"></a><var>139.32</var>attributed to the property becoming tax exempt, being excluded from taxable market <br/>
<a id="pl.139.33"></a><var>139.33</var>value, or being removed from the district. If the net tax capacity of property located within <br/>
<a id="pl.139.34"></a><var>139.34</var>the tax increment financing district is reduced by reason of a court-ordered abatement, <br/>
<a id="pl.139.35"></a><var>139.35</var>stipulation agreement, voluntary abatement made by the assessor or auditor or by order <br/>
<a id="pl.139.36"></a><var>139.36</var>of the commissioner of revenue, the reduction shall be applied to the original net tax <br/>
<a id="pl.140.1"></a><var>140.1</var>capacity of the district when the property upon which the abatement is made has not been <br/>
<a id="pl.140.2"></a><var>140.2</var>improved since the date of certification of the district and to the captured net tax capacity <br/>
<a id="pl.140.3"></a><var>140.3</var>of the district in each year thereafter when the abatement relates to improvements made <br/>
<a id="pl.140.4"></a><var>140.4</var>after the date of certification. The county auditor may specify reasonable form and content <br/>
<a id="pl.140.5"></a><var>140.5</var>of the request for certification of the authority and any modification thereof pursuant to <br/>
<a id="pl.140.6"></a><var>140.6</var>section 
         <statute_ref>469.175, subdivision 4</statute_ref>.<br/>
<a id="pl.140.7"></a><var>140.7</var>    (f) If a parcel of property contained a substandard building or improvements <br/>
<a id="pl.140.8"></a><var>140.8</var>described in section 
         <statute_ref>469.174, subdivision 10</statute_ref>, paragraph (e), that were demolished or <br/>
<a id="pl.140.9"></a><var>140.9</var>removed and if the authority elects to treat the parcel as occupied by a substandard <br/>
<a id="pl.140.10"></a><var>140.10</var>building under section 
         <statute_ref>469.174, subdivision 10</statute_ref>, paragraph (b), or by improvements under <br/>
<a id="pl.140.11"></a><var>140.11</var>section 
         <statute_ref>469.174, subdivision 10</statute_ref>, paragraph (e), the auditor shall certify the original net tax <br/>
<a id="pl.140.12"></a><var>140.12</var>capacity of the parcel using the greater of (1) the current net tax capacity of the parcel, or <br/>
<a id="pl.140.13"></a><var>140.13</var>(2) the estimated market value of the parcel for the year in which the building or other <br/>
<a id="pl.140.14"></a><var>140.14</var>improvements were demolished or removed, but applying the class rates for the current <br/>
<a id="pl.140.15"></a><var>140.15</var>year.<br/>
<a id="pl.140.16"></a><var>140.16</var>    (g) For a redevelopment district qualifying under section 
         <statute_ref>469.174, subdivision 10</statute_ref>, <br/>
<a id="pl.140.17"></a><var>140.17</var>paragraph (a), clause (4), as a qualified disaster area, the auditor shall certify the value of <br/>
<a id="pl.140.18"></a><var>140.18</var>the land as the original tax capacity for any parcel in the district that contains a building <br/>
<a id="pl.140.19"></a><var>140.19</var>that suffered substantial damage as a result of the disaster or emergency.<br/>
<a id="pl.140.20"></a><var>140.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.140.21"></a><var>140.21</var>and applies to all districts, regardless of when the request for certification was made, and <br/>
<a id="pl.140.22"></a><var>140.22</var>to computation of increment beginning with taxes payable in 2013, provided that the <br/>
<a id="pl.140.23"></a><var>140.23</var>adjustments to original tax capacity required by this section apply only to exclusions <br/>
<a id="pl.140.24"></a><var>140.24</var>that reduced taxable market value beginning with taxes payable in 2012 or thereafter, <br/>
<a id="pl.140.25"></a><var>140.25</var>regardless of when the law authorizing the exclusion became effective.<br/>
<br/>
<a id="bill.7.81.0"></a><a id="pl.140.26"></a><var>140.26</var>    Sec. 81. Minnesota Statutes 2010, section 469.180, subdivision 2, is amended to read:<br/>
<a id="pl.140.27"></a><var>140.27</var>    Subd. 2. <b>Tax levies.</b> Notwithstanding any law, the county board of any county may <br/>
<a id="pl.140.28"></a><var>140.28</var>appropriate from the general revenue fund a sum not to exceed a county levy of 0.00080 <br/>
<a id="pl.140.29"></a><var>140.29</var>percent of taxable estimated market value to carry out the purposes of this section.<br/>
<br/>
<a id="bill.7.82.0"></a><a id="pl.140.30"></a><var>140.30</var>    Sec. 82. Minnesota Statutes 2010, section 469.187, is amended to read:<br/>
<a id="pl.140.31"></a><var>140.31</var><b>469.187 FIRST CLASS CITY SPENDING FOR PUBLICITY; PUBLICITY </b><br/>
<a id="pl.140.32"></a><var>140.32</var><b>BOARD.</b><br/>
<a id="pl.141.1"></a><var>141.1</var>Any city of the first class may expend money for city publicity purposes. The city <br/>
<a id="pl.141.2"></a><var>141.2</var>may levy a tax, not exceeding 0.00080 percent of taxable estimated market value. The <br/>
<a id="pl.141.3"></a><var>141.3</var>proceeds of the levy shall be expended in the manner and for the city publicity purposes <br/>
<a id="pl.141.4"></a><var>141.4</var>the council directs. The council may establish and provide for a publicity board or bureau <br/>
<a id="pl.141.5"></a><var>141.5</var>to administer the fund, subject to the conditions and limitations the council prescribes <br/>
<a id="pl.141.6"></a><var>141.6</var>by ordinance.<br/>
<br/>
<a id="bill.7.83.0"></a><a id="pl.141.7"></a><var>141.7</var>    Sec. 83. Minnesota Statutes 2010, section 469.206, is amended to read:<br/>
<a id="pl.141.8"></a><var>141.8</var><b>469.206 HAZARDOUS PROPERTY PENALTY.</b><br/>
<a id="pl.141.9"></a><var>141.9</var>A city may assess a penalty up to one percent of the estimated market value of <br/>
<a id="pl.141.10"></a><var>141.10</var>real property, including any building located within the city that the city determines to <br/>
<a id="pl.141.11"></a><var>141.11</var>be hazardous as defined in section 
         <statute_ref>463.15, subdivision 3</statute_ref>. The city shall send a written <br/>
<a id="pl.141.12"></a><var>141.12</var>notice to the address to which the property tax statement is sent at least 90 days before it <br/>
<a id="pl.141.13"></a><var>141.13</var>may assess the penalty. If the owner of the property has not paid the penalty or fixed the <br/>
<a id="pl.141.14"></a><var>141.14</var>property within 90 days after receiving notice of the penalty, the penalty is considered <br/>
<a id="pl.141.15"></a><var>141.15</var>delinquent and is increased by 25 percent each 60 days the penalty is not paid and the <br/>
<a id="pl.141.16"></a><var>141.16</var>property remains hazardous. For the purposes of this section, a penalty that is delinquent <br/>
<a id="pl.141.17"></a><var>141.17</var>is considered a delinquent property tax and subject to chapters 279, 280, and 281, in the <br/>
<a id="pl.141.18"></a><var>141.18</var>same manner as delinquent property taxes.<br/>
<br/>
<a id="bill.7.84.0"></a><a id="pl.141.19"></a><var>141.19</var>    Sec. 84. Minnesota Statutes 2010, section 471.24, is amended to read:<br/>
<a id="pl.141.20"></a><var>141.20</var><b>471.24 TOWNS, STATUTORY CITIES; JOINT MAINTENANCE OF </b><br/>
<a id="pl.141.21"></a><var>141.21</var><b>CEMETERY.</b><br/>
<a id="pl.141.22"></a><var>141.22</var>Where a statutory city or town owns and maintains an established cemetery or burial <br/>
<a id="pl.141.23"></a><var>141.23</var>ground, either within or without the municipal limits, the statutory city or town may, by <br/>
<a id="pl.141.24"></a><var>141.24</var>mutual agreement with contiguous statutory cities and towns, each having a an estimated <br/>
<a id="pl.141.25"></a><var>141.25</var>market value of not less than $2,000,000, join together in the maintenance of such public <br/>
<a id="pl.141.26"></a><var>141.26</var>cemetery or burial ground for the use of the inhabitants of each of such municipalities; and <br/>
<a id="pl.141.27"></a><var>141.27</var>each such municipality is hereby authorized, by action of its council or governing body, <br/>
<a id="pl.141.28"></a><var>141.28</var>to levy a tax or make an appropriation for the annual support and maintenance of such <br/>
<a id="pl.141.29"></a><var>141.29</var>cemetery or burial ground; provided, the amount thus appropriated by each municipality <br/>
<a id="pl.141.30"></a><var>141.30</var>shall not exceed a total of $10,000 in any one year.<br/>
<br/>
<a id="bill.7.85.0"></a><a id="pl.141.31"></a><var>141.31</var>    Sec. 85. Minnesota Statutes 2010, section 471.571, subdivision 1, is amended to read:<br/>
<a id="pl.141.32"></a><var>141.32</var>    Subdivision 1. <b>Application.</b> This section applies to each city in which the net tax <br/>
<a id="pl.141.33"></a><var>141.33</var>capacity of real and personal property consists in part of iron ore or lands containing <br/>
<a id="pl.142.1"></a><var>142.1</var>taconite or semitaconite and in which the total taxable estimated market value of real <br/>
<a id="pl.142.2"></a><var>142.2</var>and personal property exceeds $2,500,000.<br/>
<br/>
<a id="bill.7.86.0"></a><a id="pl.142.3"></a><var>142.3</var>    Sec. 86. Minnesota Statutes 2010, section 471.571, subdivision 2, is amended to read:<br/>
<a id="pl.142.4"></a><var>142.4</var>    Subd. 2. <b>Creation of fund, tax levy.</b> The governing body of the city may create a <br/>
<a id="pl.142.5"></a><var>142.5</var>permanent improvement and replacement fund to be maintained by an annual tax levy. <br/>
<a id="pl.142.6"></a><var>142.6</var>The governing body may levy a tax in excess of any charter limitation for the support of <br/>
<a id="pl.142.7"></a><var>142.7</var>the permanent improvement and replacement fund, but not exceeding the following:<br/>
<a id="pl.142.8"></a><var>142.8</var>(a) in cities having a population of not more than 500 inhabitants, the lesser of $20 <br/>
<a id="pl.142.9"></a><var>142.9</var>per capita or 0.08059 percent of taxable estimated market value;<br/>
<a id="pl.142.10"></a><var>142.10</var>(b) in cities having a population of more than 500 and less than 2500 2,500, the <br/>
<a id="pl.142.11"></a><var>142.11</var>greater of $12.50 per capita or $10,000 but not exceeding 0.08059 percent of taxable <br/>
<a id="pl.142.12"></a><var>142.12</var>estimated market value;<br/>
<a id="pl.142.13"></a><var>142.13</var>(c) in cities having a population of more than 2500 2,500 or more inhabitants, <br/>
<a id="pl.142.14"></a><var>142.14</var>the greater of $10 per capita or $31,500 but not exceeding 0.08059 percent of taxable <br/>
<a id="pl.142.15"></a><var>142.15</var>estimated market value.<br/>
<br/>
<a id="bill.7.87.0"></a><a id="pl.142.16"></a><var>142.16</var>    Sec. 87. Minnesota Statutes 2010, section 471.73, is amended to read:<br/>
<a id="pl.142.17"></a><var>142.17</var><b>471.73 ACCEPTANCE OF PROVISIONS.</b><br/>
<a id="pl.142.18"></a><var>142.18</var>In the case of any city within the class specified in section 
<statute_ref>471.72</statute_ref> having a an <br/>
<a id="pl.142.19"></a><var>142.19</var>estimated  market value, as defined in section 
<statute_ref>471.72</statute_ref>, in excess of $37,000,000; and in the <br/>
<a id="pl.142.20"></a><var>142.20</var>case of any statutory city within such class having a an estimated market value, as defined <br/>
<a id="pl.142.21"></a><var>142.21</var>in section 
<statute_ref>471.72</statute_ref>, of less than $5,000,000; and in the case of any statutory city within such <br/>
<a id="pl.142.22"></a><var>142.22</var>class which is governed by Laws 1933, chapter 211, or Laws 1937, chapter 356; and in <br/>
<a id="pl.142.23"></a><var>142.23</var>the case of any statutory city within such class which is governed by Laws 1929, chapter <br/>
<a id="pl.142.24"></a><var>142.24</var>208, and has a an estimated market value of less than $83,000,000; and in the case of <br/>
<a id="pl.142.25"></a><var>142.25</var>any school district within such class having a an estimated market value, as defined in <br/>
<a id="pl.142.26"></a><var>142.26</var>section 
<statute_ref>471.72</statute_ref>, of more than $54,000,000; and in the case of all towns within said class; <br/>
<a id="pl.142.27"></a><var>142.27</var>sections 
         <statute_ref>471.71</statute_ref> to 
         <statute_ref>471.83</statute_ref> apply only if the governing body of the city or statutory city, the <br/>
<a id="pl.142.28"></a><var>142.28</var>board of the school district, or the town board of the town shall have adopted a resolution <br/>
<a id="pl.142.29"></a><var>142.29</var>determining to issue bonds under the provisions of sections 
         <statute_ref>471.71</statute_ref> to 
         <statute_ref>471.83</statute_ref> or to go <br/>
<a id="pl.142.30"></a><var>142.30</var>upon a cash basis in accordance with the provisions thereof.<br/>
<br/>
<a id="bill.7.88.0"></a><a id="pl.142.31"></a><var>142.31</var>    Sec. 88. Minnesota Statutes 2010, section 473.325, subdivision 2, is amended to read:<br/>
<a id="pl.142.32"></a><var>142.32</var>    Subd. 2. <b>Chapter 475 applies; exceptions.</b> The Metropolitan Council shall sell and <br/>
<a id="pl.142.33"></a><var>142.33</var>issue the bonds in the manner provided in chapter 475, and shall have the same powers <br/>
<a id="pl.143.1"></a><var>143.1</var>and duties as a municipality issuing bonds under that law, except that the approval of a <br/>
<a id="pl.143.2"></a><var>143.2</var>majority of the electors shall not be required and the net debt limitations shall not apply. <br/>
<a id="pl.143.3"></a><var>143.3</var>The terms of each series of bonds shall be fixed so that the amount of principal and interest <br/>
<a id="pl.143.4"></a><var>143.4</var>on all outstanding and undischarged bonds, together with the bonds proposed to be issued, <br/>
<a id="pl.143.5"></a><var>143.5</var>due in any year shall not exceed 0.01209 percent of estimated market value of all taxable <br/>
<a id="pl.143.6"></a><var>143.6</var>property in the metropolitan area as last finally equalized prior to a proposed issue. The <br/>
<a id="pl.143.7"></a><var>143.7</var>bonds shall be secured in accordance with section 
         <statute_ref>475.61, subdivision 1</statute_ref>, and any taxes <br/>
<a id="pl.143.8"></a><var>143.8</var>required for their payment shall be levied by the council, shall not affect the amount or rate <br/>
<a id="pl.143.9"></a><var>143.9</var>of taxes which may be levied by the council for other purposes, shall be spread against all <br/>
<a id="pl.143.10"></a><var>143.10</var>taxable property in the metropolitan area and shall not be subject to limitation as to rate or <br/>
<a id="pl.143.11"></a><var>143.11</var>amount. Any taxes certified by the council to the county auditors for collection shall be <br/>
<a id="pl.143.12"></a><var>143.12</var>reduced by the amount received by the council from the commissioner of management and <br/>
<a id="pl.143.13"></a><var>143.13</var>budget or the federal government for the purpose of paying the principal and interest on <br/>
<a id="pl.143.14"></a><var>143.14</var>bonds to which the levy relates. The council shall certify the fact and amount of all money <br/>
<a id="pl.143.15"></a><var>143.15</var>so received to the county auditors, and the auditors shall reduce the levies previously made <br/>
<a id="pl.143.16"></a><var>143.16</var>for the bonds in the manner and to the extent provided in section 
         <statute_ref>475.61, subdivision 3</statute_ref>.<br/>
<br/>
<a id="bill.7.89.0"></a><a id="pl.143.17"></a><var>143.17</var>    Sec. 89. Minnesota Statutes 2010, section 473.629, is amended to read:<br/>
<a id="pl.143.18"></a><var>143.18</var><b>473.629 VALUE OF PROPERTY FOR BOND ISSUES BY SCHOOL </b><br/>
<a id="pl.143.19"></a><var>143.19</var><b>DISTRICTS.</b><br/>
<a id="pl.143.20"></a><var>143.20</var>As to any lands to be detached from any school district under the provisions hereof <br/>
<a id="pl.143.21"></a><var>143.21</var>section 473.625, notwithstanding such prospective the detachment, the estimated market <br/>
<a id="pl.143.22"></a><var>143.22</var>value of such the detached lands and the net tax capacity of taxable properties now located <br/>
<a id="pl.143.23"></a><var>143.23</var>therein or thereon shall be and on the lands on the date of the detachment constitute <br/>
<a id="pl.143.24"></a><var>143.24</var>from and after the date of the enactment hereof a part of the estimated market value of <br/>
<a id="pl.143.25"></a><var>143.25</var>properties upon the basis of which such used to calculate the net debt limit of the school <br/>
<a id="pl.143.26"></a><var>143.26</var>district may issue its bonds,. The value of such the lands for such purpose to be and other <br/>
<a id="pl.143.27"></a><var>143.27</var>taxable properties for purposes of the school district's net debt limit are 33-1/3 percent of <br/>
<a id="pl.143.28"></a><var>143.28</var>the estimated market value thereof as determined and certified by said the assessor to said <br/>
<a id="pl.143.29"></a><var>143.29</var>the school district, and it shall be the duty of such the assessor annually on or before the <br/>
<a id="pl.143.30"></a><var>143.30</var>tenth day of October from and after the passage hereof, to so of each year, shall determine <br/>
<a id="pl.143.31"></a><var>143.31</var>and certify that value; provided, however, that the value of such the detached lands and <br/>
<a id="pl.143.32"></a><var>143.32</var>such taxable properties shall never exceed 20 percent of the estimated market value of <br/>
<a id="pl.143.33"></a><var>143.33</var>all properties constituting and making up the basis aforesaid used to calculate the net <br/>
<a id="pl.143.34"></a><var>143.34</var>debt limit of the school district.<br/>
<br/>
<a id="bill.7.90.0"></a><a id="pl.144.1"></a><var>144.1</var>    Sec. 90. Minnesota Statutes 2010, section 473.661, subdivision 3, is amended to read:<br/>
<a id="pl.144.2"></a><var>144.2</var>    Subd. 3. <b>Levy limit.</b> In any budget certified by the commissioners under this <br/>
<a id="pl.144.3"></a><var>144.3</var>section, the amount included for operation and maintenance shall not exceed an amount <br/>
<a id="pl.144.4"></a><var>144.4</var>which, when extended against the property taxable therefor under section 
         <statute_ref>473.621, <br/>
<a id="pl.144.5"></a><var>144.5</var>subdivision 5
         </statute_ref>, will require a levy at a rate of 0.00806 percent of estimated market value. <br/>
<a id="pl.144.6"></a><var>144.6</var>Taxes levied by the corporation shall not affect the amount or rate of taxes which may <br/>
<a id="pl.144.7"></a><var>144.7</var>be levied by any other local government unit within the metropolitan area under the <br/>
<a id="pl.144.8"></a><var>144.8</var>provisions of any charter.<br/>
<br/>
<a id="bill.7.91.0"></a><a id="pl.144.9"></a><var>144.9</var>    Sec. 91. Minnesota Statutes 2010, section 473.667, subdivision 9, is amended to read:<br/>
<a id="pl.144.10"></a><var>144.10</var>    Subd. 9. <b>Additional taxes.</b> Nothing herein shall prevent the commission from <br/>
<a id="pl.144.11"></a><var>144.11</var>levying a tax not to exceed 0.00121 percent of estimated market value on taxable property <br/>
<a id="pl.144.12"></a><var>144.12</var>within its taxing jurisdiction, in addition to any levies found necessary for the debt <br/>
<a id="pl.144.13"></a><var>144.13</var>service fund authorized by section 
         <statute_ref>473.671</statute_ref>. Nothing herein shall prevent the levy and <br/>
<a id="pl.144.14"></a><var>144.14</var>appropriation for purposes of the commission of any other tax on property or on any <br/>
<a id="pl.144.15"></a><var>144.15</var>income, transaction, or privilege, when and if authorized by law. All collections of any <br/>
<a id="pl.144.16"></a><var>144.16</var>taxes so levied shall be included in the revenues appropriated for the purposes referred <br/>
<a id="pl.144.17"></a><var>144.17</var>to in this section, unless otherwise provided in the law authorizing the levies; but no <br/>
<a id="pl.144.18"></a><var>144.18</var>covenant as to the continuance or as to the rate and amount of any such levy shall be made <br/>
<a id="pl.144.19"></a><var>144.19</var>with the holders of the commission's bonds unless specifically authorized by law.<br/>
<br/>
<a id="bill.7.92.0"></a><a id="pl.144.20"></a><var>144.20</var>    Sec. 92. Minnesota Statutes 2010, section 473.671, is amended to read:<br/>
<a id="pl.144.21"></a><var>144.21</var><b>473.671 LIMIT OF TAX LEVY.</b><br/>
<a id="pl.144.22"></a><var>144.22</var>The taxes levied against the property of the metropolitan area in any one year shall <br/>
<a id="pl.144.23"></a><var>144.23</var>not exceed 0.00806 percent of taxable estimated market value, exclusive of taxes levied <br/>
<a id="pl.144.24"></a><var>144.24</var>to pay the principal or interest on any bonds or indebtedness of the city issued under <br/>
<a id="pl.144.25"></a><var>144.25</var>Laws 1943, chapter 500, and exclusive of any taxes levied to pay the share of the city for <br/>
<a id="pl.144.26"></a><var>144.26</var>payments on bonded indebtedness of the corporation provided for in Laws 1943, chapter <br/>
<a id="pl.144.27"></a><var>144.27</var>500. The levy of taxes authorized in Laws 1943, chapter 500, shall be in addition to the <br/>
<a id="pl.144.28"></a><var>144.28</var>maximum rate allowed to be levied to defray the cost of government under the provisions <br/>
<a id="pl.144.29"></a><var>144.29</var>of the charter of any city affected by Laws 1943, chapter 500.<br/>
<br/>
<a id="bill.7.93.0"></a><a id="pl.144.30"></a><var>144.30</var>    Sec. 93. Minnesota Statutes 2010, section 473.711, subdivision 2a, is amended to read:<br/>
<a id="pl.144.31"></a><var>144.31</var>    Subd. 2a. <b>Tax levy.</b> (a) The commission may levy a tax on all taxable property in <br/>
<a id="pl.144.32"></a><var>144.32</var>the district as defined in section 
         <statute_ref>473.702</statute_ref> to provide funds for the purposes of sections <br/>
<statute_ref><a id="pl.144.33"></a><var>144.33</var>473.701
         </statute_ref> to 
         <statute_ref>473.716</statute_ref>. The tax shall not exceed the property tax levy limitation determined <br/>
<a id="pl.145.1"></a><var>145.1</var>in this subdivision. A participating county may agree to levy an additional tax to be used <br/>
<a id="pl.145.2"></a><var>145.2</var>by the commission for the purposes of sections 
         <statute_ref>473.701</statute_ref> to 
         <statute_ref>473.716</statute_ref> but the sum of the <br/>
<a id="pl.145.3"></a><var>145.3</var>county's and commission's taxes may not exceed the county's proportionate share of <br/>
<a id="pl.145.4"></a><var>145.4</var>the property tax levy limitation determined under this subdivision based on the ratio of <br/>
<a id="pl.145.5"></a><var>145.5</var>its total net tax capacity to the total net tax capacity of the entire district as adjusted by <br/>
<a id="pl.145.6"></a><var>145.6</var>section 
         <statute_ref>270.12, subdivision 3</statute_ref>. The auditor of each county in the district shall add the <br/>
<a id="pl.145.7"></a><var>145.7</var>amount of the levy made by the district to other taxes of the county for collection by <br/>
<a id="pl.145.8"></a><var>145.8</var>the county treasurer with other taxes. When collected, the county treasurer shall make <br/>
<a id="pl.145.9"></a><var>145.9</var>settlement of the tax with the district in the same manner as other taxes are distributed <br/>
<a id="pl.145.10"></a><var>145.10</var>to political subdivisions. No county shall levy any tax for mosquito, disease vectoring <br/>
<a id="pl.145.11"></a><var>145.11</var>tick, and black gnat (Simuliidae) control except under this section. The levy shall be in <br/>
<a id="pl.145.12"></a><var>145.12</var>addition to other taxes authorized by law.<br/>
<a id="pl.145.13"></a><var>145.13</var>(b) The property tax levied by the Metropolitan Mosquito Control Commission shall <br/>
<a id="pl.145.14"></a><var>145.14</var>not exceed the product of (i) the commission's property tax levy limitation for the previous <br/>
<a id="pl.145.15"></a><var>145.15</var>year determined under this subdivision multiplied by (ii) an index for market valuation <br/>
<a id="pl.145.16"></a><var>145.16</var>changes equal to the total estimated market valuation value of all taxable property for the <br/>
<a id="pl.145.17"></a><var>145.17</var>current tax payable year located within the district plus any area that has been added to the <br/>
<a id="pl.145.18"></a><var>145.18</var>district since the previous year, divided by the total estimated market valuation value of all <br/>
<a id="pl.145.19"></a><var>145.19</var>taxable property located within the district for the previous taxes payable year.<br/>
<a id="pl.145.20"></a><var>145.20</var>(c) For the purpose of determining the commission's property tax levy limitation <br/>
<a id="pl.145.21"></a><var>145.21</var>under this subdivision, "total market valuation" means the total market valuation of all <br/>
<a id="pl.145.22"></a><var>145.22</var>taxable property within the district without valuation adjustments for fiscal disparities <br/>
<a id="pl.145.23"></a><var>145.23</var>(chapter 473F), tax increment financing (sections 
<statute_ref>469.174</statute_ref> to 469.179), and high voltage <br/>
<a id="pl.145.24"></a><var>145.24</var>transmission lines (section 273.425).<br/>
<br/>
<a id="bill.7.94.0"></a><a id="pl.145.25"></a><var>145.25</var>    Sec. 94. Minnesota Statutes 2010, section 473F.02, subdivision 12, is amended to read:<br/>
<a id="pl.145.26"></a><var>145.26</var>    Subd. 12. <b>Adjusted </b><b>market value.</b> "Adjusted market value" of real and personal <br/>
<a id="pl.145.27"></a><var>145.27</var>property within a municipality means the assessor's estimated taxable market value, <br/>
<a id="pl.145.28"></a><var>145.28</var>as defined in section 272.03, of all real and personal property, including the value of <br/>
<a id="pl.145.29"></a><var>145.29</var>manufactured housing, within the municipality, adjusted for sales ratios in a manner <br/>
<a id="pl.145.30"></a><var>145.30</var>similar to the adjustments made to city and town net tax capacities . For purposes <br/>
<a id="pl.145.31"></a><var>145.31</var>of sections 
<statute_ref>473F.01</statute_ref> to 
<statute_ref>473F.13</statute_ref>, the commissioner of revenue shall annually make <br/>
<a id="pl.145.32"></a><var>145.32</var>determinations and reports with respect to each municipality which are comparable to <br/>
<a id="pl.145.33"></a><var>145.33</var>those it makes for school districts under section 
         <statute_ref>127A.48, subdivisions 1 to 6</statute_ref>, in the same <br/>
<a id="pl.145.34"></a><var>145.34</var>manner and at the same times as are prescribed by the subdivisions. The commissioner <br/>
<a id="pl.145.35"></a><var>145.35</var>of revenue shall annually determine, for each municipality, information comparable to <br/>
<a id="pl.146.1"></a><var>146.1</var>that required by section 
<statute_ref>475.53, subdivision 4</statute_ref>, for school districts, as soon as practicable <br/>
<a id="pl.146.2"></a><var>146.2</var>after it becomes available. The commissioner of revenue shall then compute the equalized <br/>
<a id="pl.146.3"></a><var>146.3</var>market value of property within each municipality using the aggregate sales ratios from <br/>
<a id="pl.146.4"></a><var>146.4</var>the Department of Revenue's sales ratio study.<br/>
<br/>
<a id="bill.7.95.0"></a><a id="pl.146.5"></a><var>146.5</var>    Sec. 95. Minnesota Statutes 2010, section 473F.02, subdivision 14, is amended to read:<br/>
<a id="pl.146.6"></a><var>146.6</var>    Subd. 14. <b>Fiscal capacity.</b> "Fiscal capacity" of a municipality means its valuation <br/>
<a id="pl.146.7"></a><var>146.7</var>adjusted market value, determined as of January 2 of any year, divided by its population, <br/>
<a id="pl.146.8"></a><var>146.8</var>determined as of a date in the same year.<br/>
<br/>
<a id="bill.7.96.0"></a><a id="pl.146.9"></a><var>146.9</var>    Sec. 96. Minnesota Statutes 2010, section 473F.02, subdivision 15, is amended to read:<br/>
<a id="pl.146.10"></a><var>146.10</var>    Subd. 15. <b>Average fiscal capacity.</b> "Average fiscal capacity" of municipalities <br/>
<a id="pl.146.11"></a><var>146.11</var>means the sum of the valuations adjusted market values of all municipalities, determined <br/>
<a id="pl.146.12"></a><var>146.12</var>as of January 2 of any year, divided by the sum of their populations, determined as of <br/>
<a id="pl.146.13"></a><var>146.13</var>a date in the same year.<br/>
<br/>
<a id="bill.7.97.0"></a><a id="pl.146.14"></a><var>146.14</var>    Sec. 97. Minnesota Statutes 2010, section 473F.02, subdivision 23, is amended to read:<br/>
<a id="pl.146.15"></a><var>146.15</var>    Subd. 23. <b>Net tax capacity.</b> "Net tax capacity" means the taxable market value of <br/>
<a id="pl.146.16"></a><var>146.16</var>real and personal property multiplied by its net tax capacity rates in section 
         <statute_ref>273.13</statute_ref>.<br/>
<br/>
<a id="bill.7.98.0"></a><a id="pl.146.17"></a><var>146.17</var>    Sec. 98. Minnesota Statutes 2010, section 475.521, subdivision 4, is amended to read:<br/>
<a id="pl.146.18"></a><var>146.18</var>    Subd. 4. <b>Limitations on amount.</b> A municipality may not issue bonds under this <br/>
<a id="pl.146.19"></a><var>146.19</var>section if the maximum amount of principal and interest to become due in any year on <br/>
<a id="pl.146.20"></a><var>146.20</var>all the outstanding bonds issued under this section, including the bonds to be issued, <br/>
<a id="pl.146.21"></a><var>146.21</var>will equal or exceed 0.16 percent of the taxable estimated market value of property <br/>
<a id="pl.146.22"></a><var>146.22</var>in the municipality. Calculation of the limit must be made using the taxable estimated <br/>
<a id="pl.146.23"></a><var>146.23</var>market value for the taxes payable year in which the obligations are issued and sold. In <br/>
<a id="pl.146.24"></a><var>146.24</var>the case of a municipality with a population of 2,500 or more, the bonds are subject to <br/>
<a id="pl.146.25"></a><var>146.25</var>the net debt limits under section 
         <statute_ref>475.53</statute_ref>. In the case of a shared facility in which more <br/>
<a id="pl.146.26"></a><var>146.26</var>than one municipality participates, upon compliance by each participating municipality <br/>
<a id="pl.146.27"></a><var>146.27</var>with the requirements of subdivision 2, the limitations in this subdivision and the net debt <br/>
<a id="pl.146.28"></a><var>146.28</var>represented by the bonds shall be allocated to each participating municipality in proportion <br/>
<a id="pl.146.29"></a><var>146.29</var>to its required financial contribution to the financing of the shared facility, as set forth in <br/>
<a id="pl.146.30"></a><var>146.30</var>the joint powers agreement relating to the shared facility. This section does not limit the <br/>
<a id="pl.146.31"></a><var>146.31</var>authority to issue bonds under any other special or general law.<br/>
<br/>
<a id="bill.7.99.0"></a><a id="pl.147.1"></a><var>147.1</var>    Sec. 99. Minnesota Statutes 2010, section 475.53, subdivision 1, is amended to read:<br/>
<a id="pl.147.2"></a><var>147.2</var>    Subdivision 1. <b>Generally.</b> Except as otherwise provided in sections 
         <statute_ref>475.51</statute_ref> to <br/>
<statute_ref><a id="pl.147.3"></a><var>147.3</var>475.74
         </statute_ref>, no municipality, except a school district or a city of the first class, shall incur or be <br/>
<a id="pl.147.4"></a><var>147.4</var>subject to a net debt in excess of three percent of the estimated market value of taxable <br/>
<a id="pl.147.5"></a><var>147.5</var>property in the municipality.<br/>
<br/>
<a id="bill.7.100.0"></a><a id="pl.147.6"></a><var>147.6</var>    Sec. 100. Minnesota Statutes 2010, section 475.53, subdivision 3, is amended to read:<br/>
<a id="pl.147.7"></a><var>147.7</var>    Subd. 3. <b>Cities first class.</b> Unless its charter permits a greater net debt a city of <br/>
<a id="pl.147.8"></a><var>147.8</var>the first class may not incur a net debt in excess of two percent of the estimated market <br/>
<a id="pl.147.9"></a><var>147.9</var>value of all taxable property therein. If the charter of the city permits a net debt of the city <br/>
<a id="pl.147.10"></a><var>147.10</var>in excess of two percent of its valuation, it may not incur a net debt in excess of 3-2/3 <br/>
<a id="pl.147.11"></a><var>147.11</var>percent of the estimated market value of the taxable property therein.<br/>
<a id="pl.147.12"></a><var>147.12</var>The county auditor, at the time of preparing the tax list of the city, shall compile a <br/>
<a id="pl.147.13"></a><var>147.13</var>statement setting forth the total net tax capacity and the total estimated market value of <br/>
<a id="pl.147.14"></a><var>147.14</var>each class of taxable property in such city for such year.<br/>
<br/>
<a id="bill.7.101.0"></a><a id="pl.147.15"></a><var>147.15</var>    Sec. 101. Minnesota Statutes 2010, section 475.53, subdivision 4, is amended to read:<br/>
<a id="pl.147.16"></a><var>147.16</var>    Subd. 4. <b>School districts.</b> Except as otherwise provided by law, no school district <br/>
<a id="pl.147.17"></a><var>147.17</var>shall be subject to a net debt in excess of 15 percent of the actual estimated  market value <br/>
<a id="pl.147.18"></a><var>147.18</var>of all taxable property situated within its corporate limits, as computed in accordance with <br/>
<a id="pl.147.19"></a><var>147.19</var>this subdivision. The county auditor of each county containing taxable real or personal <br/>
<a id="pl.147.20"></a><var>147.20</var>property situated within any school district shall certify to the district upon request the <br/>
<a id="pl.147.21"></a><var>147.21</var>estimated market value of all such property. Whenever the commissioner of revenue, in <br/>
<a id="pl.147.22"></a><var>147.22</var>accordance with section 
         <statute_ref>127A.48, subdivisions 1 to 6</statute_ref>, has determined that the net tax <br/>
<a id="pl.147.23"></a><var>147.23</var>capacity of any district furnished by county auditors is not based upon the adjusted market <br/>
<a id="pl.147.24"></a><var>147.24</var>value of taxable property in the district exceeds the estimated market value of property <br/>
<a id="pl.147.25"></a><var>147.25</var>within the district, the commissioner of revenue shall certify to the district upon request <br/>
<a id="pl.147.26"></a><var>147.26</var>the ratio most recently ascertained to exist between such the estimated market  value and <br/>
<a id="pl.147.27"></a><var>147.27</var>the actual adjusted market value of property within the district., and the actual market <br/>
<a id="pl.147.28"></a><var>147.28</var>value of property within a district, on which its debt limit under this subdivision is will <br/>
<a id="pl.147.29"></a><var>147.29</var>be  based, is (a) the value certified by the county auditors, or (b) this on the estimated <br/>
<a id="pl.147.30"></a><var>147.30</var>market value divided by the ratio certified by the commissioner of revenue, whichever <br/>
<a id="pl.147.31"></a><var>147.31</var>results in a higher value.<br/>
<br/>
<a id="bill.7.102.0"></a><a id="pl.147.32"></a><var>147.32</var>    Sec. 102. Minnesota Statutes 2010, section 475.58, subdivision 2, is amended to read:<br/>
<a id="pl.148.1"></a><var>148.1</var>    Subd. 2. <b>Funding, refunding.</b> Any county, city, town, or school district whose <br/>
<a id="pl.148.2"></a><var>148.2</var>outstanding gross debt, including all items referred to in section 
         <statute_ref>475.51, subdivision <br/>
<a id="pl.148.3"></a><var>148.3</var>4
         </statute_ref>, exceed in amount 1.62 percent of its estimated market value may issue bonds under <br/>
<a id="pl.148.4"></a><var>148.4</var>this subdivision for the purpose of funding or refunding such indebtedness or any part <br/>
<a id="pl.148.5"></a><var>148.5</var>thereof. A list of the items of indebtedness to be funded or refunded shall be made by the <br/>
<a id="pl.148.6"></a><var>148.6</var>recording officer and treasurer and filed in the office of the recording officer. The initial <br/>
<a id="pl.148.7"></a><var>148.7</var>resolution of the governing body shall refer to this subdivision as authority for the issue, <br/>
<a id="pl.148.8"></a><var>148.8</var>state the amount of bonds to be issued and refer to the list of indebtedness to be funded or <br/>
<a id="pl.148.9"></a><var>148.9</var>refunded. This resolution shall be published once each week for two successive weeks <br/>
<a id="pl.148.10"></a><var>148.10</var>in a legal newspaper published in the municipality or if there be no such newspaper, in <br/>
<a id="pl.148.11"></a><var>148.11</var>a legal newspaper published in the county seat. Such bonds may be issued without the <br/>
<a id="pl.148.12"></a><var>148.12</var>submission of the question of their issue to the electors unless within ten days after the <br/>
<a id="pl.148.13"></a><var>148.13</var>second publication of the resolution a petition requesting such election signed by ten or <br/>
<a id="pl.148.14"></a><var>148.14</var>more voters who are taxpayers of the municipality, shall be filed with the recording officer. <br/>
<a id="pl.148.15"></a><var>148.15</var>In event such petition is filed, no bonds shall be issued hereunder unless authorized by a <br/>
<a id="pl.148.16"></a><var>148.16</var>majority of the electors voting on the question.<br/>
<br/>
<a id="bill.7.103.0"></a><a id="pl.148.17"></a><var>148.17</var>    Sec. 103. Minnesota Statutes 2010, section 475.73, subdivision 1, is amended to read:<br/>
<a id="pl.148.18"></a><var>148.18</var>    Subdivision 1. <b>May purchase these bonds; conditions.</b> Obligations sold under the <br/>
<a id="pl.148.19"></a><var>148.19</var>provisions of section 
         <statute_ref>475.60</statute_ref> may be purchased by the State Board of Investment if the <br/>
<a id="pl.148.20"></a><var>148.20</var>obligations meet the requirements of section 
         <statute_ref>11A.24, subdivision 2</statute_ref>, upon the approval of <br/>
<a id="pl.148.21"></a><var>148.21</var>the attorney general as to form and execution of the application therefor, and under rules <br/>
<a id="pl.148.22"></a><var>148.22</var>as the board may specify, and the state board shall have authority to purchase the same <br/>
<a id="pl.148.23"></a><var>148.23</var>to an amount not exceeding 
         <statute_ref>3.63</statute_ref> percent of the estimated market value of the taxable <br/>
<a id="pl.148.24"></a><var>148.24</var>property of the municipality, according to the last preceding assessment. The obligations <br/>
<a id="pl.148.25"></a><var>148.25</var>shall not run for a shorter period than one year, nor for a longer period than 30 years and <br/>
<a id="pl.148.26"></a><var>148.26</var>shall bear interest at a rate to be fixed by the state board but not less than two percent per <br/>
<a id="pl.148.27"></a><var>148.27</var>annum. Forthwith upon the delivery to the state of Minnesota of any obligations issued by <br/>
<a id="pl.148.28"></a><var>148.28</var>virtue thereof, the commissioner of management and budget shall certify to the respective <br/>
<a id="pl.148.29"></a><var>148.29</var>auditors of the various counties wherein are situated the municipalities issuing the same, <br/>
<a id="pl.148.30"></a><var>148.30</var>the number, denomination, amount, rate of interest and date of maturity of each obligation.<br/>
<br/>
<a id="bill.7.104.0"></a><a id="pl.148.31"></a><var>148.31</var>    Sec. 104. Minnesota Statutes 2011 Supplement, section 477A.011, subdivision 20, <br/>
<a id="pl.148.32"></a><var>148.32</var>is amended to read:<br/>
<a id="pl.148.33"></a><var>148.33</var>    Subd. 20. <b>City net tax capacity.</b> "City net tax capacity" means (1) the net tax <br/>
<a id="pl.148.34"></a><var>148.34</var>capacity computed using the net tax capacity rates in section 
<statute_ref>273.13</statute_ref> for taxes payable <br/>
<a id="pl.149.1"></a><var>149.1</var>in the year of the aid distribution, and the market values, after the exclusion in section <br/>
<a id="pl.149.2"></a><var>149.2</var><statute_ref>273.13, subdivision 35</statute_ref>, for taxes payable in the year prior to the aid distribution plus (2) <br/>
<a id="pl.149.3"></a><var>149.3</var>a city's fiscal disparities distribution tax capacity under section 
<statute_ref>276A.06, subdivision 2</statute_ref>, <br/>
<a id="pl.149.4"></a><var>149.4</var>paragraph (b), or 
<statute_ref>473F.08, subdivision 2</statute_ref>, paragraph (b), for taxes payable in the year prior <br/>
<a id="pl.149.5"></a><var>149.5</var>to that for which aids are being calculated. The market value utilized in computing city <br/>
<a id="pl.149.6"></a><var>149.6</var>net tax capacity shall be reduced by the sum of (1) a city's market value of commercial <br/>
<a id="pl.149.7"></a><var>149.7</var>industrial property as defined in section 
<statute_ref>276A.01, subdivision 3</statute_ref>, or 
<statute_ref>473F.02, subdivision 3</statute_ref>, <br/>
<a id="pl.149.8"></a><var>149.8</var>multiplied by the ratio determined pursuant to section 
<statute_ref>276A.06, subdivision 2</statute_ref>, paragraph <br/>
<a id="pl.149.9"></a><var>149.9</var>(a), or 
<statute_ref>473F.08, subdivision 2</statute_ref>, paragraph (a), (2) the market value of the captured value <br/>
<a id="pl.149.10"></a><var>149.10</var>of tax increment financing districts as defined in section 
<statute_ref>469.177, subdivision 2</statute_ref>, and (3) <br/>
<a id="pl.149.11"></a><var>149.11</var>the market value of transmission lines deducted from a city's total net tax capacity under <br/>
<a id="pl.149.12"></a><var>149.12</var>section 
<statute_ref>273.425</statute_ref>. The city net tax capacity will be computed using equalized market values <br/>
<a id="pl.149.13"></a><var>149.13</var>the city's adjusted net tax capacity under section 273.1325.<br/>
<a id="pl.149.14"></a><var>149.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.105.0"></a><a id="pl.149.15"></a><var>149.15</var>    Sec. 105. Minnesota Statutes 2010, section 477A.011, subdivision 32, is amended to <br/>
<a id="pl.149.16"></a><var>149.16</var>read:<br/>
<a id="pl.149.17"></a><var>149.17</var>    Subd. 32. <b>Commercial industrial percentage.</b> "Commercial industrial percentage" <br/>
<a id="pl.149.18"></a><var>149.18</var>for a city is 100 times the sum of the estimated market values of all real property in the <br/>
<a id="pl.149.19"></a><var>149.19</var>city classified as class 3 under section 
         <statute_ref>273.13, subdivision 24</statute_ref>, excluding public utility <br/>
<a id="pl.149.20"></a><var>149.20</var>property, to the total estimated market value of all taxable real and personal property in <br/>
<a id="pl.149.21"></a><var>149.21</var>the city. The estimated market values are the amounts computed before any adjustments <br/>
<a id="pl.149.22"></a><var>149.22</var>for fiscal disparities under section 
         <statute_ref>276A.06</statute_ref> or 
         <statute_ref>473F.08</statute_ref>. The estimated market values <br/>
<a id="pl.149.23"></a><var>149.23</var>used for this subdivision are not equalized.<br/>
<a id="pl.149.24"></a><var>149.24</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2014 and <br/>
<a id="pl.149.25"></a><var>149.25</var>thereafter.<br/>
<br/>
<a id="bill.7.106.0"></a><a id="pl.149.26"></a><var>149.26</var>    Sec. 106. Minnesota Statutes 2010, section 477A.0124, subdivision 2, is amended to <br/>
<a id="pl.149.27"></a><var>149.27</var>read:<br/>
<a id="pl.149.28"></a><var>149.28</var>    Subd. 2. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br/>
<a id="pl.149.29"></a><var>149.29</var>have the meanings given them.<br/>
<a id="pl.149.30"></a><var>149.30</var>(b) "County program aid" means the sum of "county need aid," "county tax base <br/>
<a id="pl.149.31"></a><var>149.31</var>equalization aid," and "county transition aid."<br/>
<a id="pl.149.32"></a><var>149.32</var>(c) "Age-adjusted population" means a county's population multiplied by the county <br/>
<a id="pl.149.33"></a><var>149.33</var>age index.<br/>
<a id="pl.150.1"></a><var>150.1</var>(d) "County age index" means the percentage of the population over age 65 within <br/>
<a id="pl.150.2"></a><var>150.2</var>the county divided by the percentage of the population over age 65 within the state, except <br/>
<a id="pl.150.3"></a><var>150.3</var>that the age index for any county may not be greater than 1.8 nor less than 0.8.<br/>
<a id="pl.150.4"></a><var>150.4</var>(e) "Population over age 65" means the population over age 65 established as of <br/>
<a id="pl.150.5"></a><var>150.5</var>July 15 in an aid calculation year by the most recent federal census, by a special census <br/>
<a id="pl.150.6"></a><var>150.6</var>conducted under contract with the United States Bureau of the Census, by a population <br/>
<a id="pl.150.7"></a><var>150.7</var>estimate made by the Metropolitan Council, or by a population estimate of the state <br/>
<a id="pl.150.8"></a><var>150.8</var>demographer made pursuant to section 
         <statute_ref>4A.02</statute_ref>, whichever is the most recent as to the stated <br/>
<a id="pl.150.9"></a><var>150.9</var>date of the count or estimate for the preceding calendar year and which has been certified <br/>
<a id="pl.150.10"></a><var>150.10</var>to the commissioner of revenue on or before July 15 of the aid calculation year. A revision <br/>
<a id="pl.150.11"></a><var>150.11</var>to an estimate or count is effective for these purposes only if certified to the commissioner <br/>
<a id="pl.150.12"></a><var>150.12</var>on or before July 15 of the aid calculation year. Clerical errors in the certification or use of <br/>
<a id="pl.150.13"></a><var>150.13</var>estimates and counts established as of July 15 in the aid calculation year are subject to <br/>
<a id="pl.150.14"></a><var>150.14</var>correction within the time periods allowed under section 
         <statute_ref>477A.014</statute_ref>.<br/>
<a id="pl.150.15"></a><var>150.15</var>(f) "Part I crimes" means the three-year average annual number of Part I crimes <br/>
<a id="pl.150.16"></a><var>150.16</var>reported for each county by the Department of Public Safety for the most recent years <br/>
<a id="pl.150.17"></a><var>150.17</var>available. By July 1 of each year, the commissioner of public safety shall certify to the <br/>
<a id="pl.150.18"></a><var>150.18</var>commissioner of revenue the number of Part I crimes reported for each county for the <br/>
<a id="pl.150.19"></a><var>150.19</var>three most recent calendar years available.<br/>
<a id="pl.150.20"></a><var>150.20</var>(g) "Households receiving food stamps" means the average monthly number of <br/>
<a id="pl.150.21"></a><var>150.21</var>households receiving food stamps for the three most recent years for which data is <br/>
<a id="pl.150.22"></a><var>150.22</var>available. By July 1 of each year, the commissioner of human services must certify to the <br/>
<a id="pl.150.23"></a><var>150.23</var>commissioner of revenue the average monthly number of households in the state and in <br/>
<a id="pl.150.24"></a><var>150.24</var>each county that receive food stamps, for the three most recent calendar years available.<br/>
<a id="pl.150.25"></a><var>150.25</var>(h) "County net tax capacity" means the net tax capacity of the county, computed <br/>
<a id="pl.150.26"></a><var>150.26</var>analogously to city net tax capacity under section 
<statute_ref>477A.011, subdivision 20</statute_ref> county's <br/>
<a id="pl.150.27"></a><var>150.27</var>adjusted net tax capacity under section 273.1325.<br/>
<a id="pl.150.28"></a><var>150.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.107.0"></a><a id="pl.150.29"></a><var>150.29</var>    Sec. 107. Minnesota Statutes 2010, section 641.23, is amended to read:<br/>
<a id="pl.150.30"></a><var>150.30</var><b>641.23 FUNDS; HOW PROVIDED.</b><br/>
<a id="pl.150.31"></a><var>150.31</var>Before any contract is made for the erection of a county jail, sheriff's residence, or <br/>
<a id="pl.150.32"></a><var>150.32</var>both, the county board shall either levy a sufficient tax to provide the necessary funds, or <br/>
<a id="pl.150.33"></a><var>150.33</var>issue county bonds therefor in accordance with the provisions of chapter 475, provided <br/>
<a id="pl.150.34"></a><var>150.34</var>that no election is required if the amount of all bonds issued for this purpose and interest <br/>
<a id="pl.151.1"></a><var>151.1</var>on them which are due and payable in any year does not exceed an amount equal to <br/>
<a id="pl.151.2"></a><var>151.2</var>0.09671 percent of estimated market value of taxable property within the county, as last <br/>
<a id="pl.151.3"></a><var>151.3</var>determined before the bonds are issued.<br/>
<br/>
<a id="bill.7.108.0"></a><a id="pl.151.4"></a><var>151.4</var>    Sec. 108. Minnesota Statutes 2010, section 641.24, is amended to read:<br/>
<a id="pl.151.5"></a><var>151.5</var><b>641.24 LEASING.</b><br/>
<a id="pl.151.6"></a><var>151.6</var>The county may, by resolution of the county board, enter into a lease agreement with <br/>
<a id="pl.151.7"></a><var>151.7</var>any statutory or home rule charter city situated within the county, or a county housing and <br/>
<a id="pl.151.8"></a><var>151.8</var>redevelopment authority established pursuant to chapter 469 or any special law whereby <br/>
<a id="pl.151.9"></a><var>151.9</var>the city or county housing and redevelopment authority will construct a jail or other law <br/>
<a id="pl.151.10"></a><var>151.10</var>enforcement facilities for the county sheriff, deputy sheriffs, and other employees of the <br/>
<a id="pl.151.11"></a><var>151.11</var>sheriff and other law enforcement agencies, in accordance with plans prepared by or at <br/>
<a id="pl.151.12"></a><var>151.12</var>the request of the county board and, when required, approved by the commissioner of <br/>
<a id="pl.151.13"></a><var>151.13</var>corrections and will finance it by the issuance of revenue bonds, and the county may lease <br/>
<a id="pl.151.14"></a><var>151.14</var>the site and improvements for a term and upon rentals sufficient to produce revenue for the <br/>
<a id="pl.151.15"></a><var>151.15</var>prompt payment of the bonds and all interest accruing thereon and, upon completion of <br/>
<a id="pl.151.16"></a><var>151.16</var>payment, will acquire title thereto. The real and personal property acquired for the jail <br/>
<a id="pl.151.17"></a><var>151.17</var>shall constitute a project and the lease agreement shall constitute a revenue agreement <br/>
<a id="pl.151.18"></a><var>151.18</var>as contemplated in chapter 469, and all proceedings shall be taken by the city or county <br/>
<a id="pl.151.19"></a><var>151.19</var>housing and redevelopment authority and the county in the manner and with the force and <br/>
<a id="pl.151.20"></a><var>151.20</var>effect provided in chapter 469; provided that:<br/>
<a id="pl.151.21"></a><var>151.21</var>(1) no tax shall be imposed upon or in lieu of a tax upon the property;<br/>
<a id="pl.151.22"></a><var>151.22</var>(2) the approval of the project by the commissioner of commerce shall not be <br/>
<a id="pl.151.23"></a><var>151.23</var>required;<br/>
<a id="pl.151.24"></a><var>151.24</var>(3) the Department of Corrections shall be furnished and shall record such <br/>
<a id="pl.151.25"></a><var>151.25</var>information concerning each project as it may prescribe;<br/>
<a id="pl.151.26"></a><var>151.26</var>(4) the rentals required to be paid under the lease agreement shall not exceed in any <br/>
<a id="pl.151.27"></a><var>151.27</var>year one-tenth of one percent of the estimated market value of property within the county, <br/>
<a id="pl.151.28"></a><var>151.28</var>as last finally equalized before the execution of the agreement;<br/>
<a id="pl.151.29"></a><var>151.29</var>(5) the county board shall provide for the payment of all rentals due during the term <br/>
<a id="pl.151.30"></a><var>151.30</var>of the lease, in the manner required in section 
         <statute_ref>641.264, subdivision 2</statute_ref>;<br/>
<a id="pl.151.31"></a><var>151.31</var>(6) no mortgage on the property shall be granted for the security of the bonds, but <br/>
<a id="pl.151.32"></a><var>151.32</var>compliance with clause (5) hereof may be enforced as a nondiscretionary duty of the <br/>
<a id="pl.151.33"></a><var>151.33</var>county board; and<br/>
<a id="pl.151.34"></a><var>151.34</var>(7) the county board may sublease any part of the jail property for purposes consistent <br/>
<a id="pl.151.35"></a><var>151.35</var>with the maintenance and operation of a county jail or other law enforcement facility.<br/>
<br/>
<a id="bill.7.109.0"></a><a id="pl.152.1"></a><var>152.1</var>    Sec. 109. Minnesota Statutes 2010, section 645.44, is amended by adding a subdivision <br/>
<a id="pl.152.2"></a><var>152.2</var>to read:<br/>
<a id="pl.152.3"></a><var>152.3</var>    Subd. 20. <b>Estimated market value.</b> When used in determining or calculating a <br/>
<a id="pl.152.4"></a><var>152.4</var>limit on taxation, spending, state aid amounts, or debt, bond, certificate of indebtedness, or <br/>
<a id="pl.152.5"></a><var>152.5</var>capital note issuance by or for a local government unit, "estimated market value" has the <br/>
<a id="pl.152.6"></a><var>152.6</var>meaning given in section 273.032. <br/>
<br/>
<a id="bill.7.110.0"></a><a id="pl.152.7"></a><var>152.7</var>    Sec. 110. <b>REVISOR'S INSTRUCTION.</b><br/>
<a id="pl.152.8"></a><var>152.8</var>The revisor of statutes shall recodify Minnesota Statutes, section 127A.48, <br/>
<a id="pl.152.9"></a><var>152.9</var>subdivisions 1 to 6, as section 273.1325, subdivisions 1 to 6, and change all <br/>
<a id="pl.152.10"></a><var>152.10</var>cross-references to the affected subdivisions accordingly.<br/>
<a id="pl.152.11"></a><var>152.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.111.0"></a><a id="pl.152.12"></a><var>152.12</var>    Sec. 111. <b> REPEALER.</b><br/>
<a id="pl.152.13"></a><var>152.13</var>Minnesota Statutes 2010, sections 273.11, subdivision 1a; 276A.01, subdivision <br/>
<a id="pl.152.14"></a><var>152.14</var>11; 276A.06, subdivision 10; 473F.02, subdivision 13; 473F.08, subdivision 10; and <br/>
<a id="pl.152.15"></a><var>152.15</var>477A.011, subdivision 21, are repealed.<br/>
<br/>
<a id="bill.7.112.0"></a><a id="pl.152.16"></a><var>152.16</var>    Sec. 112. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.152.17"></a><var>152.17</var>Unless otherwise specifically provided, this article is effective the day following <br/>
<a id="pl.152.18"></a><var>152.18</var>final enactment for purposes of limits on net debt, the issuance of bonds, certificates of <br/>
<a id="pl.152.19"></a><var>152.19</var>indebtedness, and capital notes and is effective beginning for taxes payable in 2013 for <br/>
<a id="pl.152.20"></a><var>152.20</var>all other purposes.<br/>
<br/>
<a id="bill.8.0.0"></a>

<a id="bill.8.1.0"></a><a id="pl.152.23"></a><var>152.23</var>    Section 1. <b>[136A.129] GREATER MINNESOTA INTERNSHIP PROGRAM.</b><br/>
<a id="pl.152.24"></a><var>152.24</var>    Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the terms defined in <br/>
<a id="pl.152.25"></a><var>152.25</var>this subdivision have the meanings given them.<br/>
<a id="pl.152.26"></a><var>152.26</var>(b) "Eligible employer" means a taxpayer under section 290.01 with employees <br/>
<a id="pl.152.27"></a><var>152.27</var>located in greater Minnesota.<br/>
<a id="pl.152.28"></a><var>152.28</var>(c) "Eligible institution" means a Minnesota public postsecondary institution, or a <br/>
<a id="pl.152.29"></a><var>152.29</var>Minnesota private, nonprofit, baccalaureate degree granting college or university.<br/>
<a id="pl.152.30"></a><var>152.30</var>(d) "Eligible student" means a student enrolled in an eligible institution who is a <br/>
<a id="pl.152.31"></a><var>152.31</var>junior or senior in a degree program or has completed one-half of the credits necessary for <br/>
<a id="pl.152.32"></a><var>152.32</var>an associate degree or certification.<br/>
<a id="pl.153.1"></a><var>153.1</var>(e) "Greater Minnesota" means the area located outside of the metropolitan area, as <br/>
<a id="pl.153.2"></a><var>153.2</var>defined in section 473.121, subdivision 2.<br/>
<a id="pl.153.3"></a><var>153.3</var>(f) "Office" means the Office of Higher Education.<br/>
<a id="pl.153.4"></a><var>153.4</var>    Subd. 2. <b>Program established.</b> The office, in cooperation with the Department of <br/>
<a id="pl.153.5"></a><var>153.5</var>Employment and Economic Development, shall administer a greater Minnesota internship <br/>
<a id="pl.153.6"></a><var>153.6</var>grant program for eligible employers who hire interns in greater Minnesota through <br/>
<a id="pl.153.7"></a><var>153.7</var>eligible institutions that provide academic credit. The purpose of the program is to <br/>
<a id="pl.153.8"></a><var>153.8</var>encourage Minnesota businesses to:<br/>
<a id="pl.153.9"></a><var>153.9</var>(1) employ and provide valuable experience to Minnesota students; and<br/>
<a id="pl.153.10"></a><var>153.10</var>(2) foster long-term relationships between the students and greater Minnesota <br/>
<a id="pl.153.11"></a><var>153.11</var>employers.<br/>
<a id="pl.153.12"></a><var>153.12</var>    Subd. 3. <b>Program components.</b> (a) An intern must be an eligible student who <br/>
<a id="pl.153.13"></a><var>153.13</var>has been admitted to a major program that is closely related to the intern experience <br/>
<a id="pl.153.14"></a><var>153.14</var>as determined by the eligible institution.<br/>
<a id="pl.153.15"></a><var>153.15</var>(b) To participate in the program, an eligible institution must:<br/>
<a id="pl.153.16"></a><var>153.16</var>(1) enter into written agreements with eligible employers to provide paid internships <br/>
<a id="pl.153.17"></a><var>153.17</var>that are at least 12 weeks long and located in greater Minnesota;<br/>
<a id="pl.153.18"></a><var>153.18</var>(2) determine that the work experience of the internship is closely related to the <br/>
<a id="pl.153.19"></a><var>153.19</var>eligible student's course of study; and<br/>
<a id="pl.153.20"></a><var>153.20</var>(3) provide academic credit for the successful completion of the internship or <br/>
<a id="pl.153.21"></a><var>153.21</var>ensure that it fulfills requirements necessary to complete a vocational technical education <br/>
<a id="pl.153.22"></a><var>153.22</var>program.<br/>
<a id="pl.153.23"></a><var>153.23</var>(c) To participate in the program, an eligible employer must enter into a written <br/>
<a id="pl.153.24"></a><var>153.24</var>agreement with an eligible institution specifying that the intern:<br/>
<a id="pl.153.25"></a><var>153.25</var>(1) would not have been hired without the grant described in subdivision 4;<br/>
<a id="pl.153.26"></a><var>153.26</var>(2) did not work for the employer prior to entering the agreement;<br/>
<a id="pl.153.27"></a><var>153.27</var>(3) does not replace an existing employee;<br/>
<a id="pl.153.28"></a><var>153.28</var>(4) has not previously participated in the program;<br/>
<a id="pl.153.29"></a><var>153.29</var>(5) will be employed at a location in greater Minnesota;<br/>
<a id="pl.153.30"></a><var>153.30</var>(6) will be paid at least minimum wage for a minimum of 16 hours per week for at <br/>
<a id="pl.153.31"></a><var>153.31</var>least a 12-week period; and<br/>
<a id="pl.153.32"></a><var>153.32</var>(7) will be supervised and evaluated by the employer.<br/>
<a id="pl.153.33"></a><var>153.33</var>(d) Participating eligible institutions and eligible employers must report annually to <br/>
<a id="pl.153.34"></a><var>153.34</var>the office. The report must include at least the following:<br/>
<a id="pl.153.35"></a><var>153.35</var>(1) the number of interns hired;<br/>
<a id="pl.153.36"></a><var>153.36</var>(2) the number of hours and weeks worked by interns; and<br/>
<a id="pl.154.1"></a><var>154.1</var>(3) the compensation paid to interns.<br/>
<a id="pl.154.2"></a><var>154.2</var>(e) An internship with clinical experience currently required for completion of <br/>
<a id="pl.154.3"></a><var>154.3</var>an academic program does not qualify for the greater Minnesota internship program <br/>
<a id="pl.154.4"></a><var>154.4</var>under this section.<br/>
<a id="pl.154.5"></a><var>154.5</var>    Subd. 4. <b>Employer grants for internships; maximum limits.</b> (a) A grant for an <br/>
<a id="pl.154.6"></a><var>154.6</var>eligible employer equals 40 percent of the compensation paid to each qualifying intern, <br/>
<a id="pl.154.7"></a><var>154.7</var>not to exceed $1,250. An employer may receive a grant for a maximum of five interns <br/>
<a id="pl.154.8"></a><var>154.8</var>in any fiscal year.<br/>
<a id="pl.154.9"></a><var>154.9</var>(b) The total amount of grants authorized under this section is limited to $1,250,000 <br/>
<a id="pl.154.10"></a><var>154.10</var>per fiscal year less administrative expense as provided in law. The office shall allocate <br/>
<a id="pl.154.11"></a><var>154.11</var>grants to eligible institutions for participating employers and certify to the Department of <br/>
<a id="pl.154.12"></a><var>154.12</var>Employment and Economic Development the amount of the grant.<br/>
<a id="pl.154.13"></a><var>154.13</var>    Subd. 5. <b>Allocations to institutions.</b> The office shall allocate employer grants <br/>
<a id="pl.154.14"></a><var>154.14</var>authorized in subdivision 4 to eligible institutions. The office shall determine relevant <br/>
<a id="pl.154.15"></a><var>154.15</var>criteria to allocate the grants, including the geographic distribution of grants to work <br/>
<a id="pl.154.16"></a><var>154.16</var>locations outside the metropolitan area. Any grant amount allocated to an institution but <br/>
<a id="pl.154.17"></a><var>154.17</var>not used may be reallocated to other eligible institutions. The office shall allocate a portion <br/>
<a id="pl.154.18"></a><var>154.18</var>of any administrative fee to participating eligible institutions for their administrative costs.<br/>
<a id="pl.154.19"></a><var>154.19</var>    Subd. 6. <b>Reports to the legislature.</b> (a) By February 1, 2013, the office and the <br/>
<a id="pl.154.20"></a><var>154.20</var>Department of Employment and Economic Development shall report to the legislature on <br/>
<a id="pl.154.21"></a><var>154.21</var>the greater Minnesota internship program. The report must include at least the following:<br/>
<a id="pl.154.22"></a><var>154.22</var>(1) the number and dollar amount of grants allocated to employers;<br/>
<a id="pl.154.23"></a><var>154.23</var>(2) the number of interns employed under the program; and<br/>
<a id="pl.154.24"></a><var>154.24</var>(3) the cost of administering the program.<br/>
<a id="pl.154.25"></a><var>154.25</var>(b) By February 1, 2014, the office and the Department of Employment and <br/>
<a id="pl.154.26"></a><var>154.26</var>Economic Development shall report to the legislature with an analysis of the effectiveness <br/>
<a id="pl.154.27"></a><var>154.27</var>of the program in stimulating businesses to hire interns and in assisting participating <br/>
<a id="pl.154.28"></a><var>154.28</var>interns in finding permanent career positions. The report must include the number of <br/>
<a id="pl.154.29"></a><var>154.29</var>students who participated in the program who were subsequently employed full-time by <br/>
<a id="pl.154.30"></a><var>154.30</var>the employer.<br/>
<a id="pl.154.31"></a><var>154.31</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.8.2.0"></a><a id="pl.154.32"></a><var>154.32</var>    Sec. 2. Minnesota Statutes 2010, section 297A.8155, is amended to read:<br/>
<a id="pl.154.33"></a><var>154.33</var><b>297A.8155 LIQUOR REPORTING REQUIREMENTS; PENALTY.</b><br/>
<a id="pl.155.1"></a><var>155.1</var>    A person who sells liquor, as defined in section 
         <statute_ref>295.75, subdivision 1</statute_ref>, in Minnesota <br/>
<a id="pl.155.2"></a><var>155.2</var>to a retailer that sells liquor, shall file with the commissioner an annual informational <br/>
<a id="pl.155.3"></a><var>155.3</var>report, in the form and manner prescribed by the commissioner, indicating the name, <br/>
<a id="pl.155.4"></a><var>155.4</var>address, and Minnesota business identification number of each retailer, and the total <br/>
<a id="pl.155.5"></a><var>155.5</var>dollar amount of liquor sold to each retailer in the previous calendar year. The report <br/>
<a id="pl.155.6"></a><var>155.6</var>must be filed on or before March 31 following the close of the calendar year. A person <br/>
<a id="pl.155.7"></a><var>155.7</var>failing to file this report is subject to the penalty imposed under section 
         <statute_ref>289A.60</statute_ref>. A <br/>
<a id="pl.155.8"></a><var>155.8</var>person required to file a report under this section is not required to provide a copy of an <br/>
<a id="pl.155.9"></a><var>155.9</var>exemption certificate, as defined in section 297A.72, provided to the person by a retailer, <br/>
<a id="pl.155.10"></a><var>155.10</var>along with the annual informational report.<br/>
<a id="pl.155.11"></a><var>155.11</var><b>EFFECTIVE DATE.</b>This section is effective for reports required to be filed <br/>
<a id="pl.155.12"></a><var>155.12</var>beginning in calendar year 2012 and thereafter.<br/>
<br/>
<a id="bill.8.3.0"></a><a id="pl.155.13"></a><var>155.13</var>    Sec. 3. Minnesota Statutes 2010, section 297G.04, subdivision 2, is amended to read:<br/>
<a id="pl.155.14"></a><var>155.14</var>    Subd. 2. <b>Tax credit.</b> A qualified brewer producing fermented malt beverages <br/>
<a id="pl.155.15"></a><var>155.15</var>is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year <br/>
<a id="pl.155.16"></a><var>155.16</var>beginning July 1, regardless of the alcohol content of the product. Qualified brewers may <br/>
<a id="pl.155.17"></a><var>155.17</var>take the credit on the 18th day of each month, but the total credit allowed may not exceed <br/>
<a id="pl.155.18"></a><var>155.18</var>in any fiscal year the lesser of:<br/>
<a id="pl.155.19"></a><var>155.19</var>(1) the liability for tax; or<br/>
<a id="pl.155.20"></a><var>155.20</var>(2) $115,000.<br/>
<a id="pl.155.21"></a><var>155.21</var>For purposes of this subdivision, a "qualified brewer" means a brewer, whether or <br/>
<a id="pl.155.22"></a><var>155.22</var>not located in this state, manufacturing less than 100,000 250,000 barrels of fermented <br/>
<a id="pl.155.23"></a><var>155.23</var>malt beverages in the calendar year immediately preceding the calendar year for which <br/>
<a id="pl.155.24"></a><var>155.24</var>the credit under this subdivision is claimed. In determining the number of barrels, all <br/>
<a id="pl.155.25"></a><var>155.25</var>brands or labels of a brewer must be combined. All facilities for the manufacture of <br/>
<a id="pl.155.26"></a><var>155.26</var>fermented malt beverages owned or controlled by the same person, corporation, or other <br/>
<a id="pl.155.27"></a><var>155.27</var>entity must be treated as a single brewer.<br/>
<a id="pl.155.28"></a><var>155.28</var><b>EFFECTIVE DATE.</b>This section is effective for determinations based on calendar <br/>
<a id="pl.155.29"></a><var>155.29</var>year 2011 production and thereafter.<br/>
<br/>
<a id="bill.8.4.0"></a><a id="pl.155.30"></a><var>155.30</var>    Sec. 4. Minnesota Statutes 2010, section 298.75, is amended by adding a subdivision <br/>
<a id="pl.155.31"></a><var>155.31</var>to read:<br/>
<a id="pl.155.32"></a><var>155.32</var>    Subd. 12. <b>Tax may be imposed; Otter Tail County.</b> (a) If Otter Tail County <br/>
<a id="pl.155.33"></a><var>155.33</var>does not impose a tax under this section and approves imposition of the tax under this <br/>
<a id="pl.156.1"></a><var>156.1</var>subdivision, the city of Vergas in Otter Tail County may impose the aggregate materials <br/>
<a id="pl.156.2"></a><var>156.2</var>tax under this section.<br/>
<a id="pl.156.3"></a><var>156.3</var>(b) For purposes of exercising the powers contained in this section, the "city" is <br/>
<a id="pl.156.4"></a><var>156.4</var>deemed to be the "county."<br/>
<a id="pl.156.5"></a><var>156.5</var>(c) All provisions in this section apply to the city of Vergas, except that in lieu of the <br/>
<a id="pl.156.6"></a><var>156.6</var>tax proceeds under subdivision 7, all proceeds of the tax must be retained by the city.<br/>
<a id="pl.156.7"></a><var>156.7</var>(d) If Otter Tail County imposes an aggregate materials tax under this section, the <br/>
<a id="pl.156.8"></a><var>156.8</var>tax imposed by the city of Vergas under this subdivision is repealed on the effective <br/>
<a id="pl.156.9"></a><var>156.9</var>date of the Otter Tail County tax.<br/>
<a id="pl.156.10"></a><var>156.10</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.156.11"></a><var>156.11</var>the city of Vergas and its chief clerical officer comply with Minnesota Statutes, section <br/>
<a id="pl.156.12"></a><var>156.12</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.8.5.0"></a><a id="pl.156.13"></a><var>156.13</var>    Sec. 5. Minnesota Statutes 2010, section 469.169, is amended by adding a subdivision <br/>
<a id="pl.156.14"></a><var>156.14</var>to read:<br/>
<a id="pl.156.15"></a><var>156.15</var>    Subd. 19. <b>Additional border city allocation; 2012.</b> (a) In addition to tax <br/>
<a id="pl.156.16"></a><var>156.16</var>reductions authorized in subdivisions 7 to 18, the commissioner shall allocate $125,000 <br/>
<a id="pl.156.17"></a><var>156.17</var>for tax reductions to border city enterprise zones in cities located on the western border <br/>
<a id="pl.156.18"></a><var>156.18</var>of the state. The commissioner shall make allocations to zones in cities on the western <br/>
<a id="pl.156.19"></a><var>156.19</var>border on a per capita basis. Allocations made under this subdivision may be used for <br/>
<a id="pl.156.20"></a><var>156.20</var>tax reductions as provided in section 469.171, or for other offsets of taxes imposed on <br/>
<a id="pl.156.21"></a><var>156.21</var>or remitted by businesses located in the enterprise zone, but only if the municipality <br/>
<a id="pl.156.22"></a><var>156.22</var>determines that the granting of the tax reduction or offset is necessary in order to retain a <br/>
<a id="pl.156.23"></a><var>156.23</var>business within or attract a business to the zone. The city alternatively may elect to use <br/>
<a id="pl.156.24"></a><var>156.24</var>any portion of the allocation provided in this paragraph for tax reductions under section <br/>
<a id="pl.156.25"></a><var>156.25</var>469.1732 or 469.1734.<br/>
<a id="pl.156.26"></a><var>156.26</var>(b) The commissioner shall allocate $125,000 for tax reductions under section <br/>
<a id="pl.156.27"></a><var>156.27</var>469.1732 or 469.1734 to cities with border city enterprise zones located on the western <br/>
<a id="pl.156.28"></a><var>156.28</var>border of the state. The commissioner shall allocate this amount among the cities on a per <br/>
<a id="pl.156.29"></a><var>156.29</var>capita basis. The city alternatively may elect to use any portion of the allocation provided <br/>
<a id="pl.156.30"></a><var>156.30</var>in this paragraph for tax reductions as provided in section 469.171.<br/>
<br/>
<a id="bill.8.6.0"></a><a id="pl.156.31"></a><var>156.31</var>    Sec. 6. <b>LIQUOR REPORTING REQUIREMENTS.</b><br/>
<a id="pl.156.32"></a><var>156.32</var>A person who was required to submit an annual informational report under <br/>
<a id="pl.156.33"></a><var>156.33</var>Minnesota Statutes, section 297A.8155, to the commissioner of revenue during calendar <br/>
<a id="pl.157.1"></a><var>157.1</var>year 2010 or 2011 is not required to provide a copy of an exemption certificate or a <br/>
<a id="pl.157.2"></a><var>157.2</var>retailer's tax identification number along with the informational report.<br/>
<a id="pl.157.3"></a><var>157.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.157.4"></a><var>157.4</var>and applies to reports required to be filed in calendar year 2010 or 2011.<br/>
<br/>
<a id="bill.8.7.0"></a><a id="pl.157.5"></a><var>157.5</var>    Sec. 7. <b>PURPOSE STATEMENTS; TAX EXPENDITURES.</b><br/>
<a id="pl.157.6"></a><var>157.6</var>    Subdivision 1. <b>Authority.</b> This section is intended to fulfill the requirement under <br/>
<a id="pl.157.7"></a><var>157.7</var>Minnesota Statutes, section 3.192, that a bill creating, renewing, or continuing a tax <br/>
<a id="pl.157.8"></a><var>157.8</var>expenditure provide a purpose for the tax expenditure and a standard or goal against <br/>
<a id="pl.157.9"></a><var>157.9</var>which its effectiveness may be measured.<br/>
<a id="pl.157.10"></a><var>157.10</var>    Subd. 2. <b>Federal conformity.</b> The provisions of article 2 conforming Minnesota <br/>
<a id="pl.157.11"></a><var>157.11</var>individual income tax to changes in federal law are intended to simplify compliance with <br/>
<a id="pl.157.12"></a><var>157.12</var>and administration of the individual income tax.<br/>
<a id="pl.157.13"></a><var>157.13</var>    Subd. 3. <b>Employment of qualified veterans tax credit.</b> The provisions of article 2, <br/>
<a id="pl.157.14"></a><var>157.14</var>section 16, providing a tax credit for the employment of qualified veterans, are intended <br/>
<a id="pl.157.15"></a><var>157.15</var>to give an incentive to employers to hire returning veterans who would otherwise be <br/>
<a id="pl.157.16"></a><var>157.16</var>unemployed and to encourage their reintegration into the community. The standard against <br/>
<a id="pl.157.17"></a><var>157.17</var>which the effectiveness of the credit is to be measured is the additional number of veterans <br/>
<a id="pl.157.18"></a><var>157.18</var>who are hired as a result of the tax credit.<br/>
<a id="pl.157.19"></a><var>157.19</var>    Subd. 4. <b>Extension of historic structure rehabilitation credit.</b> The provisions <br/>
<a id="pl.157.20"></a><var>157.20</var>of article 2, section 15, extending the sunset of the historic structure rehabilitation credit <br/>
<a id="pl.157.21"></a><var>157.21</var>are intended to create and retain jobs related to rehabilitation of historic structures in <br/>
<a id="pl.157.22"></a><var>157.22</var>Minnesota. The standard against which the effectiveness of the extension of the credit is to <br/>
<a id="pl.157.23"></a><var>157.23</var>be measured is the number of jobs created through the rehabilitation of historic structures <br/>
<a id="pl.157.24"></a><var>157.24</var>and the number of historic structures rehabilitated and placed in service.<br/>
<a id="pl.157.25"></a><var>157.25</var>    Subd. 5. <b>Exemption of certain laboratory services from the health care provider </b><br/>
<a id="pl.157.26"></a><var>157.26</var><b>tax.</b> The provisions of article 3, section 2, exempting laboratory services on specimens <br/>
<a id="pl.157.27"></a><var>157.27</var>collected outside the state from the health care provider tax is intended to eliminate <br/>
<a id="pl.157.28"></a><var>157.28</var>a competitive disadvantage for laboratories located in Minnesota when competing to <br/>
<a id="pl.157.29"></a><var>157.29</var>provide services with laboratories located outside of the state.<br/>
<a id="pl.157.30"></a><var>157.30</var>    Subd. 6. <b>Sales tax exemption for established religious orders.</b> The provisions <br/>
<a id="pl.157.31"></a><var>157.31</var>of article 3, section 7, exempting certain sales between a religious order and an affiliated <br/>
<a id="pl.157.32"></a><var>157.32</var>institute of higher education is intended to retain an existing sales tax exemption that <br/>
<a id="pl.158.1"></a><var>158.1</var>exists between St. John's Abbey and St. John's University after a governing restructure <br/>
<a id="pl.158.2"></a><var>158.2</var>between the two entities.<br/>
<a id="pl.158.3"></a><var>158.3</var>    Subd. 7. <b>Sales tax exemption for nursing homes and boarding care homes.</b><br/>
<a id="pl.158.4"></a><var>158.4</var>The provisions of article 3, section 8, exempting certain nursing homes and boarding <br/>
<a id="pl.158.5"></a><var>158.5</var>care homes is intended to clarify that an existing exemption for these facilities is not <br/>
<a id="pl.158.6"></a><var>158.6</var>affected by a recent property tax case related to defining nonprofit organizations engaged <br/>
<a id="pl.158.7"></a><var>158.7</var>in charitable activities.<br/>
<a id="pl.158.8"></a><var>158.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.8.0"></a><a id="pl.158.9"></a><var>158.9</var>    Sec. 8. <b>APPROPRIATION; GREATER MINNESOTA INTERNSHIP </b><br/>
<a id="pl.158.10"></a><var>158.10</var><b>PROGRAM.</b><br/>
<a id="pl.158.11"></a><var>158.11</var>$1,000,000 for fiscal year 2013 is appropriated from the general fund to the <br/>
<a id="pl.158.12"></a><var>158.12</var>commissioner of employment and economic development for grants under Minnesota <br/>
<a id="pl.158.13"></a><var>158.13</var>Statutes, section 136A.129, for employers who hire interns. Up to five percent of <br/>
<a id="pl.158.14"></a><var>158.14</var>the appropriation is for an administrative fee for the Office of Higher Education and <br/>
<a id="pl.158.15"></a><var>158.15</var>participating eligible institutions. The base for the Department of Employment and <br/>
<a id="pl.158.16"></a><var>158.16</var>Economic Development for the greater Minnesota internship program beginning in fiscal <br/>
<a id="pl.158.17"></a><var>158.17</var>year 2014 is $1,250,000.<br/>
<a id="pl.158.18"></a><var>158.18</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.8.9.0"></a><a id="pl.158.19"></a><var>158.19</var>    Sec. 9. <b>APPROPRIATION; MINNESOTA INVESTMENT FUND.</b><br/>
<a id="pl.158.20"></a><var>158.20</var>$2,000,000 for fiscal year 2013 is appropriated from the general fund to the <br/>
<a id="pl.158.21"></a><var>158.21</var>commissioner of employment and economic development for the Minnesota investment <br/>
<a id="pl.158.22"></a><var>158.22</var>fund under Minnesota Statutes, section 116J.8731. This is a onetime appropriation and <br/>
<a id="pl.158.23"></a><var>158.23</var>is available until spent.<br/>
<br/>
<a id="bill.8.10.0"></a><a id="pl.158.24"></a><var>158.24</var>    Sec. 10. <b>SPECIAL RECOVERY FUND; CANCELLATION.</b><br/>
<a id="pl.158.25"></a><var>158.25</var>$4,000,000 of the balance in the Revenue Department service and recovery special <br/>
<a id="pl.158.26"></a><var>158.26</var>revenue fund under Minnesota Statutes, section 270C.15, is transferred in fiscal year <br/>
<a id="pl.158.27"></a><var>158.27</var>2012 to the general fund.<br/>
<a id="pl.158.28"></a><var>158.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.11.0"></a><a id="pl.158.29"></a><var>158.29</var>    Sec. 11. <b>BUDGET RESERVE.</b><br/>
<a id="pl.159.1"></a><var>159.1</var>To offset the payment to the centers for Medicaid and Medicare services for the <br/>
<a id="pl.159.2"></a><var>159.2</var>federal share of the UCare donation and the net budget effect on the general fund of this act <br/>
<a id="pl.159.3"></a><var>159.3</var>and other acts, the commissioner of management and budget shall cancel $43,500,000 to <br/>
<a id="pl.159.4"></a><var>159.4</var>the general fund from the budget reserve account in Minnesota Statutes, section 16A.152.<br/>
<a id="pl.159.5"></a><var>159.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment."<br/>
<a id="pl.159.6"></a><var>159.6</var>Delete the title and insert:<br/>

<a id="pl.159.9"></a><var>159.9</var>income, corporate franchise, property, sales and use, mineral, liquor, aggregate <br/>
<a id="pl.159.10"></a><var>159.10</var>materials, gross receipts, estate, local, and other taxes and tax-related provisions; <br/>
<a id="pl.159.11"></a><var>159.11</var>updating references to the Internal Revenue Code; changing and providing <br/>
<a id="pl.159.12"></a><var>159.12</var>income and franchise tax credits, exemptions, and deductions; changing income <br/>
<a id="pl.159.13"></a><var>159.13</var>tax withholding requirements; establishing a veterans jobs tax credit; permitting <br/>
<a id="pl.159.14"></a><var>159.14</var>the filing of certain amended returns; modifying property tax levies, credits, <br/>
<a id="pl.159.15"></a><var>159.15</var>exemptions, proposed levies and property tax notices, and tax statements; <br/>
<a id="pl.159.16"></a><var>159.16</var>providing for use of a local levy; changing the state general levy; modifying <br/>
<a id="pl.159.17"></a><var>159.17</var>the renter property tax refund and providing a supplemental targeting refund; <br/>
<a id="pl.159.18"></a><var>159.18</var>modifying city aid payments and reporting requirements; modifying tax <br/>
<a id="pl.159.19"></a><var>159.19</var>increment financing district requirements; authorizing, changing, and extending <br/>
<a id="pl.159.20"></a><var>159.20</var>tax increment financing districts in certain local governments; changing sales <br/>
<a id="pl.159.21"></a><var>159.21</var>and use tax payment requirements and changing and providing exemptions; <br/>
<a id="pl.159.22"></a><var>159.22</var>modifying use of revenues and authorizing extension of certain sales and <br/>
<a id="pl.159.23"></a><var>159.23</var>lodging taxes and other local taxes for certain cities and making other local tax <br/>
<a id="pl.159.24"></a><var>159.24</var>changes; modifying filing, compliance, and payment requirements for estate tax <br/>
<a id="pl.159.25"></a><var>159.25</var>returns; modifying requirements for qualified farms and small business property; <br/>
<a id="pl.159.26"></a><var>159.26</var>modifying definitions and making clarifying, technical, and other changes <br/>
<a id="pl.159.27"></a><var>159.27</var>relating to the issuance of municipal bonds; authorizing certain local governments <br/>
<a id="pl.159.28"></a><var>159.28</var>to issue public debt; clarifying limits on taxation, spending, and incurring debt <br/>
<a id="pl.159.29"></a><var>159.29</var>based on market values; making technical and clarifying changes, and repealing <br/>
<a id="pl.159.30"></a><var>159.30</var>obsolete provisions related to the homestead market value credit; changing liquor <br/>
<a id="pl.159.31"></a><var>159.31</var>tax reporting and credits; requiring a funds transfer; allocating funds to border <br/>
<a id="pl.159.32"></a><var>159.32</var>city enterprise zones; changing local standard measures program reimbursement <br/>
<a id="pl.159.33"></a><var>159.33</var>requirements; requiring certain local budgetary information on local Web sites; <br/>
<a id="pl.159.34"></a><var>159.34</var>establishing a greater Minnesota internship program; requiring reports; canceling <br/>
<a id="pl.159.35"></a><var>159.35</var>funds to the general fund from the budget reserve account; appropriating <br/>
<a id="pl.159.36"></a><var>159.36</var>money; amending Minnesota Statutes 2010, sections 6.91, subdivision 2; <br/>
<a id="pl.159.37"></a><var>159.37</var>38.18; 40A.15, subdivision 2; 69.011, subdivision 1; 69.021, subdivisions 7, <br/>
<a id="pl.159.38"></a><var>159.38</var>8; 88.51, subdivision 3; 103B.245, subdivision 3; 103B.251, subdivision 8; <br/>
<a id="pl.159.39"></a><var>159.39</var>103B.635, subdivision 2; 103B.691, subdivision 2; 103D.905, subdivisions 2, 3, <br/>
<a id="pl.159.40"></a><var>159.40</var>8; 116J.8737, subdivisions 5, 8, by adding a subdivision; 117.025, subdivision 7; <br/>
<a id="pl.159.41"></a><var>159.41</var>127A.48, subdivision 1; 138.053; 144F.01, subdivision 4; 162.07, subdivisions <br/>
<a id="pl.159.42"></a><var>159.42</var>3, 4; 163.04, subdivision 3; 163.06, subdivision 6; 165.10, subdivision 1; <br/>
<a id="pl.159.43"></a><var>159.43</var>272.03, by adding subdivisions; 273.032; 273.11, subdivision 1; 273.113; <br/>
<a id="pl.159.44"></a><var>159.44</var>273.124, subdivisions 3a, 13; 273.13, subdivision 21b; 273.1398, subdivisions <br/>
<a id="pl.159.45"></a><var>159.45</var>3, 4; 275.011, subdivision 1; 275.025, subdivision 1; 275.065, subdivisions 1, <br/>
<a id="pl.159.46"></a><var>159.46</var>3; 275.077, subdivision 2; 275.71, subdivision 4; 276A.01, subdivisions 10, <br/>
<a id="pl.159.47"></a><var>159.47</var>12, 13, 15; 287.08; 287.23, subdivision 1; 289A.10, by adding a subdivision; <br/>
<a id="pl.159.48"></a><var>159.48</var>289A.12, by adding a subdivision; 289A.18, by adding a subdivision; 289A.20, <br/>
<a id="pl.159.49"></a><var>159.49</var>subdivisions 3, 4, by adding a subdivision; 289A.31, subdivision 5; 290.068, <br/>
<a id="pl.159.50"></a><var>159.50</var>subdivision 1; 290.0681, subdivisions 1, 3, 4, 5, 10; 290A.04, subdivision 2h; <br/>
<a id="pl.159.51"></a><var>159.51</var>297A.61, subdivision 4; 297A.68, subdivision 5; 297A.70, subdivision 4, by <br/>
<a id="pl.159.52"></a><var>159.52</var>adding subdivisions; 297A.815, subdivision 3; 297A.8155; 297G.04, subdivision <br/>
<a id="pl.159.53"></a><var>159.53</var>2; 298.75, by adding a subdivision; 353G.08, subdivision 2; 365.025, subdivision <br/>
<a id="pl.160.1"></a><var>160.1</var>4; 366.095, subdivision 1; 366.27; 368.01, subdivision 23; 368.47; 370.01; <br/>
<a id="pl.160.2"></a><var>160.2</var>373.40, subdivisions 1, 2, 4; 375.167, subdivision 1; 375.18, subdivision 3; <br/>
<a id="pl.160.3"></a><var>160.3</var>375.555; 383B.152; 383B.245; 383B.73, subdivision 1; 383E.20; 383E.23; <br/>
<a id="pl.160.4"></a><var>160.4</var>385.31; 394.36, subdivision 1; 398A.04, subdivision 8; 401.05, subdivision <br/>
<a id="pl.160.5"></a><var>160.5</var>3; 410.32; 412.221, subdivision 2; 412.301; 428A.02, subdivision 1; 430.102, <br/>
<a id="pl.160.6"></a><var>160.6</var>subdivision 2; 447.10; 450.19; 450.25; 458A.10; 458A.31, subdivision 1; <br/>
<a id="pl.160.7"></a><var>160.7</var>465.04; 469.033, subdivision 6; 469.034, subdivision 2; 469.053, subdivisions <br/>
<a id="pl.160.8"></a><var>160.8</var>4, 4a, 6; 469.107, subdivision 1; 469.169, by adding a subdivision; 469.174, <br/>
<a id="pl.160.9"></a><var>160.9</var>subdivisions 2, 10, by adding subdivisions; 469.175, subdivision 3; 469.176, <br/>
<a id="pl.160.10"></a><var>160.10</var>subdivisions 1b, 4b, by adding a subdivision; 469.1763, subdivisions 3, 4; <br/>
<a id="pl.160.11"></a><var>160.11</var>469.177, subdivision 1; 469.180, subdivision 2; 469.187; 469.206; 471.24; <br/>
<a id="pl.160.12"></a><var>160.12</var>471.571, subdivisions 1, 2; 471.73; 473.325, subdivision 2; 473.629; 473.661, <br/>
<a id="pl.160.13"></a><var>160.13</var>subdivision 3; 473.667, subdivision 9; 473.671; 473.711, subdivision 2a; <br/>
<a id="pl.160.14"></a><var>160.14</var>473F.02, subdivisions 12, 14, 15, 23; 474A.02, subdivision 23a; 475.521, <br/>
<a id="pl.160.15"></a><var>160.15</var>subdivisions 2, 4; 475.53, subdivisions 1, 3, 4; 475.58, subdivisions 2, 3b; <br/>
<a id="pl.160.16"></a><var>160.16</var>475.73, subdivision 1; 477A.011, subdivisions 32, 36; 477A.0124, subdivision 2; <br/>
<a id="pl.160.17"></a><var>160.17</var>477A.013, by adding a subdivision; 477A.017, subdivision 3; 641.23; 641.24; <br/>
<a id="pl.160.18"></a><var>160.18</var>645.44, by adding a subdivision; Minnesota Statutes 2011 Supplement, sections <br/>
<a id="pl.160.19"></a><var>160.19</var>116J.8737, subdivisions 1, 2; 276.04, subdivision 2; 289A.02, subdivision 7; <br/>
<a id="pl.160.20"></a><var>160.20</var>290.01, subdivisions 19, 31; 290A.03, subdivision 15; 291.005, subdivision 1; <br/>
<a id="pl.160.21"></a><var>160.21</var>291.03, subdivisions 8, 9, 10, 11; 295.53, subdivision 1; 297A.68, subdivision 42; <br/>
<a id="pl.160.22"></a><var>160.22</var>469.176, subdivisions 4c, 4m; 469.1763, subdivision 2; 477A.011, subdivision <br/>
<a id="pl.160.23"></a><var>160.23</var>20; 477A.013, subdivision 9; Laws 1971, chapter 773, section 1, subdivision 2, <br/>
<a id="pl.160.24"></a><var>160.24</var>as amended; Laws 1988, chapter 645, section 3, as amended; Laws 1998, chapter <br/>
<a id="pl.160.25"></a><var>160.25</var>389, article 8, section 43, subdivision 3, as amended; Laws 1999, chapter 243, <br/>
<a id="pl.160.26"></a><var>160.26</var>article 6, section 11; Laws 2002, chapter 377, article 3, section 25, as amended; <br/>
<a id="pl.160.27"></a><var>160.27</var>Laws 2003, chapter 127, article 12, section 28; Laws 2005, First Special Session <br/>
<a id="pl.160.28"></a><var>160.28</var>chapter 3, article 5, section 37, subdivisions 2, 4; Laws 2008, chapter 366, article <br/>
<a id="pl.160.29"></a><var>160.29</var>5, section 34, as amended; article 7, section 19, subdivision 3, as amended; Laws <br/>
<a id="pl.160.30"></a><var>160.30</var>2010, chapter 216, section 11; Laws 2010, chapter 389, article 1, section 12; <br/>
<a id="pl.160.31"></a><var>160.31</var>proposing coding for new law in Minnesota Statutes, chapters 136A; 290; 471; <br/>
<a id="pl.160.32"></a><var>160.32</var>repealing Minnesota Statutes 2010, sections 273.11, subdivision 1a; 276A.01, <br/>
<a id="pl.160.33"></a><var>160.33</var>subdivision 11; 276A.06, subdivision 10; 290.92, subdivision 31; 473F.02, <br/>
<a id="pl.160.34"></a><var>160.34</var>subdivision 13; 473F.08, subdivision 10; 477A.011, subdivision 21; Minnesota <br/>
<a id="pl.160.35"></a><var>160.35</var>Statutes 2011 Supplement, section 289A.60, subdivision 31; Laws 2009, chapter <br/>
<a id="pl.160.36"></a><var>160.36</var>88, article 4, section 23, as amended."<br/>
<table>
<col width="50px"/>
<col width="252px"/>
<col width="42px"/>
<col width="252px"/>
<tr>
<td><a id="pl.161.1"></a><var>161.1</var><br/>
</td>
<td colspan="3">We request the adoption of this report and repassage of the bill.<br/>
</td>
</tr>
<tr>
<td><a id="pl.161.2"></a><var>161.2</var><br/>
</td>
<td>House Conferees:<br/>
<span width="2em"></span></td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.3"></a><var>161.3</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.161.4"></a><var>161.4</var><br/>
</td>
<td>Greg Davids<br/>
</td>
<td></td>
<td>Sarah Anderson<br/>
</td>
</tr>
<tr>
<td><a id="pl.161.5"></a><var>161.5</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.161.6"></a><var>161.6</var><br/>
</td>
<td>Jenifer Loon<br/>
</td>
<td></td>
<td>Tara Mack<br/>
</td>
</tr>
<tr>
<td><a id="pl.161.7"></a><var>161.7</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.8"></a><var>161.8</var><br/>
</td>
<td>Linda Runbeck<br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.9"></a><var>161.9</var><br/>
</td>
<td>Senate Conferees:<br/>
<span width="2em"></span></td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.10"></a><var>161.10</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.161.11"></a><var>161.11</var><br/>
</td>
<td>Julianne E. Ortman<br/>
</td>
<td></td>
<td>Geoff Michel<br/>
</td>
</tr>
<tr>
<td><a id="pl.161.12"></a><var>161.12</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.161.13"></a><var>161.13</var><br/>
</td>
<td>Julie A. Rosen<br/>
</td>
<td></td>
<td>Warren Limmer<br/>
</td>
</tr>
<tr>
<td><a id="pl.161.14"></a><var>161.14</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.161.15"></a><var>161.15</var><br/>
</td>
<td>Roger C. Chamberlain<br/>
</td>
<td></td>
<td></td>
</tr>
</table>